Full text of Commercial and Financial Chronicle : August 11, 1955, Vol. 182, No. 5454

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

ESTABLISHED 1S39

^ i T v
MJCH.GAN

UNIVl
OF

XUg. U. 8. Pat. Office

Volume 182

Number 5454

EDITORIAL-

:

■ ■

New York 7, N. Y.,

Price 40 Cents

Thursday, August 11, 1955

Copy -

a

:.'.V

Grounds for Favorable

SeeWe
It

As
in

might

such

suppose, were

he quite uninitiated

matters, that recent steps to

inflation"

in and of themselves

were

restrictive.
that

they

•

quite

puny.

•.

I

'

•

:

By HENRY ANSBACHER LONG
1

trend of the market

Sees

a

a

as

more

about coping with the

enormous

prefer petroleum and auto issues
during second quarter of the year. Rails, metals, steels
and paper issues also continued to attract buying.
Natural gas and merchandising shares which had been

revival of what used to be called the

outset

very

subject

...

i.

.

^ sone pi41\e maip

tbcK
st

what

will

earnings

market

to

after

-

..

down.^ The

ket. went

that it would

taxes and the prospect
be

profit-less prosperity for cor-

a

.

Continued

on

talk by Mr. Comer before the Detroit
Detroit, Mich., Aug. 3, 1955.
i

23

a

REGISTRATION

SECURITIES NOW IN

trans-

friendly rereversal of the pre¬
bearish 'attitude on.
the natural gas and merchandising
issues,
also
placed
these groups
among the fund favorites. Steels and
papers
were still well
thought- of,
of

a

purchases of the finance

the first three months of>

Henry A.

companies doubled those

the year.

However, prefer¬

as

ence

—

page

was

—Pacific

*

•Summary of

previous
three
and
non-ferrous

also well liked, but less

ception, while
vious period's

and

the end of the war came into sight, the
stock market swung up, by way of forecasting the com-

'

were

to popular¬

return

March quarter, found a

porations.

.

Later on,

brief

acti,ons of the former decreasing by
^ ,and of the latter by 30%> Build_

i
v

the increased taxes, the excess profits
Comer

their

ing shares, about which management
been
undecided
during
the

the uncertainties created by the war,

Harry D.

continued

ibad

were

reasons

managements

period of the year, purchase

booming, the stock mar¬

was

re¬

enthusiastically than during the first

,

happen to dividends and
which are - the stuff out
are paid.
In the

their

metals

junction^ot^,
to forese&H

early part of the war period, although
business

•

equipment, aircraft and food

company

ity
during
the
months.)
Rails

try

dividends

of which

being employed to connote al¬
thought undesirable in the eco¬
nomic sphere. Of late, there have been efforts in
some
quarters to analyze the price structure to
show that "inflation" is present even though the
general average of prices has not advanced in
any important way for a good while past. This
appears to indicate that in the minds of such ob¬
servers
"inflation" is present only if it can be
page

of the market as a whole seems
still upward

the

were

with the auto stocks displacing the electrical
utilities
as
second
ranking favorite.
(Opinion was
divided on the power and light issues

setbacks and readjust¬
it goes along. But the broad

as

&V-

quarter,

of the year

to

trend

be

electric

on

Investment

ment

to

previous

preference for the oil shares during the second quarter

coclus'ion that the

my

the rest of this year and into 1956. Of
course, the stock* market is always

good for

now

on

give

the

porting funds displayed pronounced notes of caution.

a new war.

to

t

disposition toward retrenchment, several individual

of the
banner

for both business and the stock market is
Business prospects, in general, appear to be

any thing

Continued

a

during

Although over-all operations indicated only slight ;

issues.

current outlook

favorable.

questions of the
day untouched. The central theme today in offi¬
cial circles at least is "inflation" and its prevent
tion. Current discussions, as is almost always the
case, leave a haze of uncertainty and obscurity
about the word "inflation.", It would appear that

-

barring

want

I

But all of this leaves the basic

.

concentrated

business cycle and cites the

Concludes, 1955 will be

year,
the

know

now

we

balance

on

?.

bought in latest period. Opinion was divided on the electrie utilities and chemicals, while selling on balance was

on new

to direct the speed and direction

machine.

economic

Says

sold

upward.

available to the Federal Government

powers

in its attempt

At

to be still

seems

building, steel and automobiles.

"open mouth credit policy"—by which is meant
an effort to restrict or control
by word of mouth
—in the hope, no doubt, that both sterner meas¬
ures and further excesses may be avoided.

is

whole

a

big boom in business, with special stress

*

i.

■

Investment companies

Though noting that the stock market is always subject to
setbacks, as at present, Mr. Comer holds that the broad

It is possible that their

so-called

term

' "•*'

Members New York Stock Exchange

tightening up of mortgage
credit is hardly more than microscopic, and the
increase in discount rates (except for possible
psychological effect) quite inconsequential. There

most

■

By HARRY D. COMER*

possibly prove to be far greater than
that be have any wish for, as is always
a
possibility when business has been artificially
stimulated as it has at present. The fact remains

the

"

•

,

Partner, Paine, Webber, Jackson & Curtis

the powers

has been

1

The fact of the matter is, of course,

are

the

1

"forestall
drastically

it may

that

"

',

■,

practical effect will, as doubtless the authorities
hope, be out of proportion to their magnitude—
or

And Oil Stocks

Stock Market Outlook
'

One

20

companies in this industry
Finance, Beneficial Finance, Seaboard Finance

given to the smaller

and Trader's

Finance—while opinion was divided on the

Rotary Club,

Continued

on

page

26

Underwriters, dealers and investors in cor¬

securities are afforded a complete picture of issues now registered with the SEC
potential undertakings in our "Securities in Registration" Section, starting on page 32.

porate

DEALERS

and

State, Municipal

in

and

D. S. Government,
-

State and

KROGER CO.

Municipal

Securities

Third

STATE

and

HAnover 2-3700

Common Stock Yields

CHEMICAL
CORN EXCHANGE

NEW

BONDS

5%

REVIEW"

j. r. WlLLISTON & CO.
CSTABLItHED

ANO

OTHER

NEW

STOCK

YORK
AND

III!

STOCK

THE FIRST NATIONAL CITY BANK

EXCHXNCC

COMMOOITV

-l-

OF NEW YORK

EXCHANGES

30 BROAD ST., N.Y

Broadway, New York 6, N.Y.
Miami

Beach

—

Rye,

N.

Members New York Stock

120
Bond Dept.

Teletype: NY 1-708

34

V.

-'Net

Active

To

Dealers,

T. L.Watson &Co.

Markets

Banks

Maintained

and

Brokers

,

Members

Commission

Exchange

Stock

Exchange

-

offices

from

coast

to

CANADIAN

Orders

Canadian Exchanges

Executed

On

Common Stocks
FIRST

^CidhwtAt

25

BROAD

NEW

STREET

COMMON

All

Analysis

CANADIAN DEPARTMENT

YORK 4,

N. Y.

DIRECT

WIRES TO

Do>u?no?i Securities

Dallas




bridgeport

•

perth amboy

MONTREAL AND TORONTO

Goodbody a
MEMBERS

COMPANY

115

NEW

BROADWAY

NEW YORK

YORK

Power Co.

At Regular Rates

Utility Bonds,

Preferred and

Central Maine

BONDS & STOCKS

Teletype NY 1-2270

Public

bank

coast

'

American

Chase Manhattan

BROADWAY, NEW YORK 5

CANADIAN

SECURITIES

New York Stock

Exchange

THE

*,

1832

established

DEPARTMENT

BOND

REQUEST

HARRIS, UPHAM & C?

DEPARTMENT

115

Bonds and Notes

ENERGY-

ARE NOW AVAILABLE
ON

MEMBERS

Public Housing Agency

BOOKLET

"ATOMIC

Analysis Available

BANK
BOND

**St

COPIES OF OUR

Largest Grocery Chain

Expanding and Modernizing
telephone:

MUNICIPAL

—•—

Co.

STOCK EXCHANGE

1 NORTH LA SALLE SF.

CHICAGO

(ORPOKATIOTI
40

Exchange Place, New York 9, N.Y,
WHItehall 4-8181

request

IRA HAUPT & CO.
Members
and

111

York Stock Exchange
Principal Exchanges

New

other

Broadway, N. Y. 6

WOrth 4-6000

Teletype NY 1-702-3

upon

Boston

Teletype NY 1-2708

Telephone:

Enterprise

1820

2

The

Brokers, Dealers Only

For Banks,

Bausch & Lomb

Security I Like Best
week, a different group of experts
and advisory field from all sections of the country

in the investment

Central Indiana Gas

participate and give their

reasons

for favoring

Food

Mart,

of

Dan River Mills

(The articles contained in this forum

they to be regarded,

are

Guaranty Trust

KUNO

Gulf Coast Leaseholds

as an

Sheargon, Hanunili & Co., N. Y. City
Members New York Stock Exchange

Holly Corp.
Home Insurance

Food Mart, Inc.

Livingston Oil

Food Mart, Inc., a grocery

Long-Bell Lumber of Mo.
Railroad

Central

Maine

Telephone

su

market

per

chain in Texas.
T h

e

Markets

Food

Corporation

Worth,
Texas, adds an
of Fort

1920

Stock

American

around

York 5

120 Broadway, New

Teletype NY 1-40

WOrth 4-2300

to Principal Cities

Wires

to

Mart's

current

about

with
operating
procedures the apparent good
profit potential of this acquisition
drab

Rights & Scrip

recent

and

for
Food
provides su¬

and

excellent

Mart

years,

outlook

the

renders

Since 1917.

in

management

new

perior appreciation possibilities
this company's common stock.

ffipONNELL & GO.
Members

by

Stock Exchange
American Stock Exchange

that

At

New York

of

consisted

BROADWAY, NEW YORK 5

120

a

time

in

the company

chain lo¬
surrounding
Starting with a fis¬
volume of $7.4 mil¬
14-store

cal 1950 gross

lion, sales moved up to $9.5 mil¬
lion in 1951, $12.8 million in 1952,
$13.8 million in 1953, $15.5
1954 and $17.4 million

Trading Interest In

million
in the

in

ended March 26, 1955. A part
of this expansion may be attrib¬
uted to the rapid growth of pop¬
ulation in this region. U. S. cen¬

Bassett Furniture Industries

Camp Manufacturing

1940

figures indicate that between
and 1950 the population in

the

area

sus

Commonwealth Natural Gas
Dan River Mills

Life Insurance Co. of Va.

43.4%

Lynchburg, Va.

I

TWX LY 77

LD 30

LAMBORN & CO., Inc.
99

STREET

WALL
NEW YORK

5, N. Y.

SUGAR
Refined

Liquid

the

for all Texas and

S.

U.

as

a

whole.

year) and profits of $105,-

last

370

or

share

per

shares,

common

(up 31%).
currently

quoted around 19 in the Over-theCounter Market,
were
first of¬

publicly in January of this

year.

would

resents

a

that Food Mart

seem

at present quotes, rep¬
desirable investment on

basis of its past record alone

discounting

—even

the

new

ac¬

quisition. Its 20 stores are modern
attractive in appearance, all

and
1856

American

York

New

Chicago
Miami

Hollywood,

Exchange

which compares

estimated

Exchange,

other

Inc.

Beach

•

•

•

Y.

Pittsburgh

Coral

Beverly

stock

profits of $1.50 per share, the
sells for about 11.3 times

earnings—a ratio lower than that
for most similar companies. Food

growth record compares
favorably with that of the

Mart's
Hills,

Holland




nual

Gables

Switzerland

Amesterdam,

favorably to the
"norm"
of

national

for supermarkets. Food
profit margin
of 1.9% is better than for most
food chains.
With projected an¬

Exchange Bldg.
N.

have parking
sales per store
million a year

Mart's net after-tax

Exchange

4,

and most

$600,000

Trade

of

exchanges

Detroit

Geneva,

$1

Exchange

Board

Fla.

(16)

Average
about

Exchange

YORK
•

stores

at

Cotton

N. Y. Cotton
NEW

the

food cases,

Stock

New Orleans Cotton
and

of

frozen

run

Commodity

Chicago

with

facilites.

Members

Stock

air-conditioned and equipped

are

H. Hentz & Co.
York

choicest
a

volume

ture.

It would

mon

equity

inherently

anything

long-

be

to

with

wrong

Worth Foods that improved oper¬

procedures

lieved

N.

Members

N.

Hague, Noble & Co.,
Stock Exchange

Established

which

are

favored

the

combined

cur¬

t i

n

shake-out

ization

to six

out

This

amount

would

s

to

not

tions, would translate into poten¬
net income
of $855,000, or

follows:

about

$3

share

per

standing

common

now

on

out¬

stock.

seven

Sawyer

p e c

of

CaL
very

fastest
chains.

first

in

for

earnings

ending

March,

the
1957,

fiscal

is

year

correct,

leader

an

age

It

was

to

few

a

years

back

"If

want

you

to

buy

It is not suggested
would

or

should

sell in this price range

within the
near future, but such a computa¬
tion serves as a significant lever
to an understanding of the poten¬
tial appreciation in this stock.
Food

Mart

currently

on

a

common

stock

is

600 dividend basis,

of some 40% of
present earnings and less than
25% of projected earnings. While
capital needs in connection with

a

pay-out ratio

debt

repayment, revamping
of the recently

operations

the
ac¬

quired chain and for possible new
store additions will be heavy, an
increase in dividends might never¬

theless
next

be

expected

some

time

year.

shown relatively
good resistance to depression and

postwar

year—as

—

oring the feeding nation-wide of
thousands of factory workers em¬
ployed by

earnings

have

Julius Maier Co.. Inc.
15

Exchange Place, Jersey City 2, N. J.
'phones

BOwIing

Green

9-4058-9

5-1300-1-2

GROWTH COMPANIES

client.

Mass

in

Prophet

individual

that

feeding

started

ness

B.

of

needs

exact

of

as

took

from

and

the

on

Fred

hot

meals,

Georgia

Texas

to

American

as

Motors,
daille

Thompson

Western

on

the

American Alloys Corp.

Holiday Plastics, Inc.

Schmieg Industries, Inc.

Cali¬

to

ORRadio Industries,

Copies available

on

Inc.

request

Massachu¬

Metal

S. D. Fuller & Co.

Prod¬
39

Broadway, New York 6, N. Y.

WHitehall 3-0066

Teletype NY 1-4777

and

Products

Electric.

The

modern

pJant

cafpt.eria

operated by The Prophet Com¬
pany has replaced the lunch pail
with

on

Hercules Powder, HouHershey, RCA, Sunshine

Biscuit,

attractive
and

menus

prepared reports

unique

and include, in addition to
others, such well known
com¬
panies

have

busi¬

a

when

1919

providing

states

fornia

Jf'e

following companies:

130 clients to the

over

range of

Traditionally, supermarket chain

sales

find The Prophet Company is tail¬

ucts, Budd Wheel, Chrysler, Doug-1
las
Aircraft, Firestone, General

the
equal to

1946

answer is obvious, you
the shoe store. Now apply¬
ing this principle of specialization
to the present industrial scene we

setts,

stock

*

go to

operations (12-15 times earn¬
ings
for
Fitzsimmons,
Sunrise,
Thorofare
Markets), Food Mart
common
could trade in a price

expanding supermarket

Taking

fit your exact require¬

to

ments. The

ery

32-40.

or

a

22

the

...

pair of shoes to whom do you go
—to the corner drug store or to

the market at ratios now
prevailing for similar-sized groc¬

that

broker

explain specialization about as

the job, to 2,500 factory workers.
Today these clients are located in

uated by

your

HEnderson
uncommon

the per share figure to

about $2.70.
earnings be aval-

comparative statement-^

specializa¬

tion.

task

these

years

story of SUCCESS & GROWTH

Information by

ialized

complete conversion would lower
Should

a

highly

a

field in
N.

Robert

This, together with
projected
earnings
of
roughly
$420,000 for the El Paso opera¬
tial

(a Colorado Corporation)

stands

as a

in

business, earnings from

Food

PETROLEUM CO. Inc.

fine

service organ¬

period of perhaps three
months, can show the same
1.9% net-to-sales margin recorded
own

EMPIRE

this

g

Company.

its

the

desig-

would run at about $43-$45
million annually.' Assuming that
Food Mart's management, after a

Worth

is

classification

pany

on

Broadway,H.Y.6 COrtlandt7-5680

—The Prophet

com¬

about $435,000.

111

favorite

label

methods.

purchasing
of

sales

my

carries

n a

Brokers & Investment Bankers

a

It

1897

Tokyo—70 Branches

unusual

rent

cutting overhead, intro¬
better retail control and

changing

list.

most

that

by

available

returns

profit either through appreciation,
high yield or both is usually on
investor's

write

Yamaichi

Home Office

security

potential.

or

Securities Co., Ltd.

Prophet Company

an

with knowledge

Call

Y.

cannot cure.
It is be¬
tangible savings of

$600,000

simply
ducing

investors

SAWYER

man¬

new

have unusual appeal

to investors with vision—

Manager, Ann Arbor, Mich.,

Office of Smith,

The

may

of Japanese

ROBERT

Resident

offices

SECURITIES

sound

value
short-term in¬

or

branch

JAPANESE

com¬

excellent

that

about

The

and

financially

vestment.

our

ac¬

aggressively

this

of

to

acquisitions

that the

seem

wires

the

vigorous internal
growth for Food Mart in the fu¬

for either

appear

Mobile, Ala.
Direct

continued

and

A

not

does

NY 1-1557

La.- Birmingham, Ala.

It is

is

Food

other

of

forerunner

and

been in the red.

There

Worth

of

New Orleans,

manage¬

anticipated that the successful

business
any
other

its profit picture was not
The chain had been
netting approximately $300,000 on
considerably
lower
volume
in
previous years, but for about the
last
IV2
years
operations have

chain

one

been

of expansion.

rate

offers

of

than

Worth

Fort

ment and

company

locations

store

larger

differentiating
another have

and

increases

by

common,

New

the
did

teria

managed

volume.

current

The major investment cri¬

omy.

the shoe store with its employees

the

Establised

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

trained

It
DIgby 4-2727

million in 1946 to about

million

To finance this acquisition Food
in earnings, Mart added $1,975,000 net to its
previous debt of $425,000. Pres¬
and as gross about doubled since
1951, net income rose from $156,- ently $1.6 million of the debt is
in
long-term
bank
loans
and
000 to $328,000. For the last fiscal
$800,000 in convertible debentures.
year, ended March 26, 1955, earn¬
The
latter
debentures
are
con¬
ings amounted to $1.17 per share
on the 280,100 shares of
common vertible at $17.25 per share of
and
thus
would
add
outstanding. For the three months common
ended
June,
1955,
Food
Mart somewhat less than 46,400 shares
of
new
common
when
converted.
showed sales of $5 million (a gain
Assuming our estimate of $855,000
of 22% over the comparable fig¬

fered

Exports—Imports—Futures

20%

for

The

—

about 21

operates

New York Stock Exchange

Members

quisition

ating

Steiner, Rouse & Co.
Members American Stock Exchange

alleled

000,

—

Mart
by

Co.,

The rise in sales volume was par¬

ure

Raw

Food

which

customers increased

vs.

14.5%

STRADER,TAYLOR SCO.,Inc!

from

its

draws

&

Arbor, Mich. (Page 2)

stores
in the City of Fort Worth, Texas.
Reflecting rapidly rising popula¬
tion
(60.2%
between
1940 and
1950) the chain's sales increased

year

American Furniture

Noble

rity we like best" is the recently
completed
acquisition
of
the
Worth Food chain.
Worth Food

agement

cated in El Paso and

communities.

TEL. REctor 2-7815

management

present

its

1950.

to

Mart Inc. was taken over

Food

Ann

Manager,

Resident

Hague,

Hflnover 2-0700

satisfactory.

picture has

Worth Food's earnings
been

Smith,

chain,

B. Laren

Kuno

lion. Although

Specialists in

Sawyer,

from

in

gross

Company—Robert N.

slack periods in the general econ¬

an¬

of
$20 mil¬

nual

City. (Page 2)

The Prophet

the
factor
which
seems to place Food Mart common
far ahead of others as the "secu¬

Al¬
though Worth Food had some of

$23

million
Food

Louisiana Securities

Co.,

&

chain business.

food

$23

of

volume

Exchange

Hammill

in

However,

from $4.9

sales

annual
Member

the

Inc.—Kuno B. Laren,

Bought—Sold—Quoted

companies

growth

recognized

Selections

Shearson,

New York

Mart's sales index last
year was. equivalent to 610.
This
compares
to an index level of
about 483 for Thorofare markets
and 387 for Winn & Lovett—both

Markets

acquired
chain, Worth

New York Hanseatic
Established

the

completed

21-

another

Tennessee Gas Transmission

Associate

about

just successfully
acquisition of

Maule Industries
Rochester

chain

20 supermarkets
in and around El Paso, Texas, has

operating

nor

100, Food

LAREN

B.

intended to be,

not

are

offer to sell the securities discussed.)

Alabama &

Participants and

Their

particular security.

a

Week's

This

Forum

A continuous forum in which, each

Colorado Interstate Gas

Private

Financial Chronicle... Thursday, August 11, 1955

The Commercial and

'

(562)

in

well

so

prepared

doing employee

morale has been boosted and pro¬
ductive efficiency measurably in¬

This is indeed

creased.

a

job best
in the

Over-the-Counter

Quotation Services
for 42 Years

handled by specialists and

field of industrial food service this

has not

company

but

has

serve

so

pany

is

firm

in

only pioneered

continued
that

now

The

and

grow

Com¬

National Quotation Burean
Incorporated

the oldest and largest

the world

industrial

to

Prophet

and

Established 1913

specializing in

institutional

food

46 Front Street
CHICAGO

Continued

on

page

17

NewYork4,N.Y.
SAN FRANCISOO

Number 5454

Volume 182

(563)

The Commercial and Financial Chronicle

...

Still Reaching

:«

INDEX

?

Articles and News

Proposed revi ion by SEC of regulations on small issues discussed.
Would adversely affect the public interest, small

promotional ventures and virtually abolish best

11

Commission has issued
a "Notice of Proposed
and Consolidation of Regulation A and Regu¬

"Release No.

Revision

Dun & Bradstreet: A Favorable Report—Ira U.

3555" which is

or

Our American Way of

V' In

than

less

of

issues

$300,000

Regulation- A now

provides a. general exemption from the registration re¬
quirements of the Securities Act of 1933 for certain classes
of domestic securities and Regulation D provides a similar-

T
:
The Release informs us that the proposal "would results
a
single integrated exemptive regulation for .both

exemption for certain Canadian securities.

domestic and Canadian

H

'•

%

Thoughts

.

:

• •

•

M. Hornor

Mental Health

.

securities." To integration as such:

•„

objection, and if the purpose is merely toL
regulations under one heading and
index, since both deal with substantially the same matters,
we would support the proposal.
Another projected change would provide in "-Reg A"

;

13

;

❖

.

Reaching

NYSE

*

*

Corpus Christi Refining

*

(An Editorial)
Reveals

Study

Bulk

3

_

Stock

of

Empire State Oil

for Investment

Trades

6

Purposes

Kin-Ark Oil

9

(Boxed)

Yes, Of Course, We Can Hope!

offerings for the filing of consents to the service of process
on non-residents similar to the requirements of the present

First

in

of 1955

Quarter

Frederick G. Shu.ll Comments

tary Views

W. Randolph Burgess' Mone¬

on

14

(Letter to Editor)

50

Retires After

Lightbowne

Garfield

William

Western Oil Fields

12

Business Foreseen by Home Furnishings Leaders

Good

panies" qualify their exempted securities for sale in the
State in this country or Province in Canada in which the
issuer has its principal operations, and offer such securi¬
ties for sale in such State or Province concurrently with

J. F. REILLY & CO.

With

Years

Members

15

"Chronicle"

market

for

Plan

New

•

right has the Commission to dictate the

nounced

Foreign

in *U:

Investors

Companies

S.

Guaranty Trust Co.___

by

An¬

Lake

City Stock Excli.

42

Teletype: NYl-4643

DIgby 4-4970

raise
it not choose such

capital for its operations, why may
-state or states where it deems the sale of its securities will
accomplished, and wherein it is advised to qualify?
there about publicly held securities which calls
mandamus to small business that it must at least in

Broadway, New York 4

20

___

part of it? If small business wants to

any

Salt

Spokane Stock Exchange

offering in other jurisdictions.

or

Voss Oil

Highest in Four
Years, According to SEC-Commerce Department Data
10
Profits

Corporate

Regulation D. That, too, makes sense.
i
However, the .SEC has other plans.
It would make mandatory that "promotional com¬

place

4-6551

American States Oil

16

Vacations—Roger W. Babson

and

*

What

WHitehall

11

Commonwealth Oil
Still

consolidate the existing

the

-

STREET, NEW YORK

Telephone:

' •

,

WALL

Statism in Monetary Affairs: U. S and England

on

—Joseph

<♦>

no

see

can

..."

i

Pros and Cons of Women in Business—W. H. Seymour.

r

99

6

—Fayette B. Shaw

r

our

Obsolete Securities Dept.

Some Uninhibited Remarks About the Stock Market

r

i

It's

for obsoletes !

—

;

5

Life—Herbert Hoover

anytime.

season

4

Cobleigh:

D."

lation

we

SUMMERTIME
Cover

D., Corner.

Securities and Exchange

The

in

Cover

Grounds for Favorable Stock Market Outlook

—Harry

•

Stocks

—Henry Ansbacher Long

efforts underwriJngs.-

its

"■llCHTfflSTfl

Page

AND COMPANY

Funds Like Motor and Oil
.•

business and

3

wire

Direct

Salt

Regular Features

be best

(Editorial)

See It

As We

,

branch

to

Lake

office

in

City

Cover

._

What is
for

a

part seek a
Province

market place for its securities in the State or
which
it
has
its "principal business

in

1

24

Stocks

40

Business Man's Bookshelf

Standard Uranium Corp.
Coming Events in the Investment

This the SEC seeks to

realize through its rule making
„

We can't see it. To us the change would be a
turn about which should only result if it
deemed beneficial (which it is not) by Congress and

Corpus Christi Refining Co.
Gulf Coast Leaseholds Inc. *

.

operations"?
-

Insurance

and

Bank

40

Field

Recommendations

Dealer-Broker Investment

Stancan Uranium Corp.

8

Pacific Uranium Mines Co.

9

Livingston Oilf

power.

fundamental
were

\

considerations

similar

Because

apply

to

them,

two

—

,

to be

5

i

8)

Railroad Securities

—

of

15

Securities

effect trying to do by these three

Direct IVires to

Philadelphia * Chicago • Los Angeles

LATEST INFORMATION

14

Salesman's Corner
and You—By

The

Market

The

Security I Like Best..

The

State of Trade and

.

.

.

16

Wallace Streete..,

4

Industry-

You

"Funds

article

*See

10

Like

URANIUM

2

—

40

and

Washington

rule

page

Teletype NY 1-1825 & NY 1-1826

,,pm

on

period of one year after the commence¬

on

CORPORATION

Stocks" starting on

Motor and Oil

OF

page.

cover

1

Twice Weekly

Published

E.

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

C.

Eng¬

AMERICA

land,

The

COMMERCIAL and
Copyright

For many years we

have

specialized in

inc.

Exchange PI., N. Y.

Write for the

36

Security Offerings

Prospective

offering.

Continued

40

32

in Registration

Securities Now

promotional companies enlisting the benefits
Regulations A and D are controlled by small business
a

Mackie,

HA 2-0270

30

T

....

Items?
As

&

24

Securities

Utility

Public

changes we might as well consider a
that is, in computing the amount

What is the SEC in

Singer, Bean

•

.

^

posed to be issued, for assets or services or to directors,
officers, promoters, underwriters, dealers or security sales¬
men, and held by them, except to the extent that such
securities are escrowed or otherwise effectively held off
ment of the

■ V/ - •

over-the-counter securities

250

'

which

the market for a

.

Report

Reporter's

Our

underwriters' shares and options,
permitted under the new proposal.

could be offered there would have
included the amount of all securities issued or pro¬

securities

V

,•

Governments

Our Reporter on

third and related one,

of

... .... . -

,

May.

Wilfred

Observations—A.

than

18

and Bankers

...

^

outs," and offerings of
With these two

,

*

...

News About Banks
r

paid for within six months after the commencement
and, no securities could be offered except
the account of the issuer; secondary offerings, "Bail¬

would not be

Request.

fTe maintain trading markets in more

Funds

Mutual

of the offering;
for

Request.

on

31

other

and

on

fProspectus

* i:

'

xiV

-•

proposed changes may be viewed together. These
are that a provision be made by escrow or otherwise to
assure the return to subscribers of the money paid in for
securities unless at least 85% of the total offering is sold

Activity

Indications of Current Business

*Circular

7

of the News—Carlisle Bargeron—

From Washington Ahead

r

specific legislation enacted.
-

Checked".

Einzig: "London Stock Exchange Boom

CHRONICLE

FINANCIAL

PREFERRED STOCKS

U. S. Patent

Reg.
WILLIAM

B.

Park Place, New

25

REctor

2-9570

Publishers

9576

as

;second-class matter Febru¬
New
1879.

New circular sent

25, 1942, at the post office at
York, N. Y., under the Act of March 8,

ary

York 7, N. Y.
to

B. Dana

Company
Reentered

Office

DANA COMPANY,

1955 by William

Subscription

on

request

Rates

in United States, U. S.
Possessions, Territories and
Members of
Pan-American Union, $55.00 per year; in
Dominion
of
Canada,
$58.00 per year.
Subscriptions

Spencer Trask & Co.
Members

25 BROAD

SEIBERT, Editor &

HERBERT I).

WILLIAM

DANA

Publisher

SEIBERT, President

New York Stock Exchange

Thursday, August

ST., NEW YORK 4, N. Y.

11, 1955

Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,

Other

$62.00

Countries,
Other

per

Publications

Every

TELEPHONE HAnover 2-4300
Albany

Boston

•

Nashville

•

TELETYPE N. Y. 1-5

•
•

Chicago

Schenectady

•

•

Glens

Worcester

Falls

state

and

Other

Chicago



/

city

news,

'

Offices:

3, 111.

135

etc.).
South La Salle St.,

(Telephone STate 2-0613);

Bank

and

Note—On
rate

of

Record — Monthly,
(Foreign postage extra.)

account

of

exchange,

the

made

in

New

York

New

funds.

direct

wire

to

BOSTON
New York

REctor 2-4208

fluctuations in

remittances for for¬
must

eign subscriptions and advertisements
be

Investment Securities

30 FEDERAL ST.,

Quotation

$37.00 per year.

the

McCOY & WILLARD

year.

A.

T.

& T. Teletype

—

Boston 128

Financial Chronicle... Thursday, August 11, 1955

The Commercial and

(564)

4

periodicals include Dun's
Review
and
Dun &
Bradstreet's
International
Mar¬
kets. There are also a specialized
Other

Statistical

Dan & Bradstreel—
A Favorable

Report

about

talk about a person
sometime during the con¬
versation, "You've got to give him
credit" you're actually citing one
When

with

a

famous

"Credit—Man's Confidence in Man."

the

of

vital
in
•c.

most

elements

whole

our

economic
tem

the

t

of

t

e n

exa n y

accord¬

credit

ed either to an

inoividual,

or

corporation,

a

oetermined

is

Good

slow?

or

then

you'll

idea

such

businessmen

to

such repute for thorough,

gained

prompt, and dependable credit in¬
formation
is a tribute not only

management but to over
century of experience in assay¬

to

good

a

reports,

letter¬
the financial equivalent

on

a

sage

green

head, are
a thorough life insurance exam¬

of

ination.

If

you

to rent a
Y. to the

want

warehouse in Roslyn, N.

Corp.

Skypie

mythical)

(strictly

merely

in

room

one

runs

a

sort

a

of

but to describe
really

It

house.

business

and

in

fi¬

is

Bradstreet

City,

report

on

3-year

a

the

on

Kansas

City firm. Then you'll really learn
the
anatomy
of credit, if you
never

will

The report

knew it before.

start off

Skypie

—

with

when

the history

it

of

started,

was

where it's done business,

who

of

Who

Who's

nancial

credit

rating

through

it deems

priate in each instance.
data

Benefiting from a highly

As credit

months

of

trained,

and

has

gained the honor
biggest

the

being

most

regularly

published book in the world. But service. They need it when busi¬
principal officers and share¬
ness is on the skids to see
whom
there's a lot more.
holders,
how
the
business has
been doing; and outline the way
One of the best magazines for they can continue to trust; and
they need it when times are good
any previous business of the prin¬ businessmen
is Dun's Review &
to
get a line on the character
cipals has been handled, listing Modern
Industry,
a
monthy and solvency of the newcomers.
any slovenly payments or history
For
these
reasons,
it's
quite
of bankruptcy lurking in the past. publication known as Dun's Re¬
view for 50 years, until
it was understandable that D & B has
Then
the
report will
outline
been able to expand its gross in¬
with
Modern
Industry
briskly the careers of the prin¬ merged
the

cipal officers—age, previous busi¬
ness

connections

and personal

fi¬

nancial status to the extent avail¬

1953.

in

bined

It

now

and had

name,

(1954)

carries the

circulation

an

of

com¬

ended

years

31, 1954 from $30.7 million
$60.4 million—virtually double.

Dec.

average

to

118,027

In

which devotes its
combing over

company

a

credits,

woulld naturally ex¬

you

pect management to stress balance
excellence. Well, Dun &
Bradstreet does. At the 1954 year-

LIMITED

of

by Dun &
appropriate for

doctor to take his own tempera¬

complete facilities for serv¬
icing the investment; requirements
of American investors seeking op¬
portunities to invest their funds in
established Canadian companies with

growth potential.

That

Our facilities include

cities

of

Boston

private teletype
offices in principal

Canada

and

The

to

First

Corporation, New York.

.

1954.

It

VANCOUVER

CALGARY

KITCHENER

*

still

are

a

share

B have been

D &

there

a

was

Last

2-for-l

a row, and
stock split in

vouchsafed

year

dividend

cash

share;

per

and

in

the

year

provide further expansion

the

payout

department.

For

by this creditable

equity, who note that D & B com¬

CANADA

LONDON

HAMILTON

QUEBEC

NEW YORK

is

now

counter) at
let

an

selling

(over

the

all-time high at 53,

it be noted that earnings also

Continued

on

page

7

wielding

pencil on cus¬
semblance of
customers are getting

heavy

a

blue

Both

old

"The

and

new

Age,"

Iron

metalwerking

national

condition

this

for

would

the

by

off-guard

is

the

that

of

market

a

orders

Incoming

during the summer.

ease

companies

steel

strength

continued

running 10 to 15% ahead of capacity, this trade weekly

Meanwhile, they were hit by
contract

demands,

short-lived strike

a

maintenance problem

a

record-breaking heat

a

and

wave

union

over

of major

proportions,

vacations in their own

summer

shops.
rate, since the strike, has reflected the cumulative

The ingot
of these

effect

Operations this week

problems.

scheduled at

are

89% of capacity, while last week the mills produced at only 83.5%.
Maintenance losses extend beyond that of raw

producers are attempting to borrow steel from other mills,

some

in

and

some

will

today,

when

have had slabs finished by other producers.

cases,

seriousness

The

is

iron and steel.

rolling and slabbing mills as well—to the point where

It has hit

producers

the

of

steel

brought

be

and

home

consumers

market

situation, evident as it

with

bang

a

begin

after ,Labor Day

shape

to

their fourth

up

quarter production schedule, states "The Iron Age."

They will find previous steel promises
time

will

suppliers

houses,

already

obtaining

be

unable

trouble

in

the

been

satisfy

to

themselves,

requirements

their

rivaling

There has

from

no

mills

But if demand

deals will enter the

and

ware¬

trouble

more

tight

a

steel

quarter.

market of

gray

unrealistic; long

customers;

have

will

the

tough second

were

old

pressure

consequence

any

yet,

as

steel ingot and finish¬

largely to the close balance between

ing capacity.

continues,

some

conversion

picture, concludes this trade authority.

Changeover operations at Lincoln, Chrysler and DeScta, plus
heat losses at

most

industry plants will contribute to

cline in United States

"Ward's
at

144,569

and

and

car

Automotive

cars

truck

The statistical
with

and

98,000 trucks

trucks,

agency

compared

with

15,516 in the

coming

General

Co.

or

and

a

week

added that the past week's dip was in

car

Corp.

Chrysler

schedules showed

American

totals

Division,

The

on

6,240 trucks.

and

and

while

Stucebakerover

to be at

the

was

a

only

minimum last

producer

had six final

company

Saturday, with the week's

program

re¬

assembly

aimed at

Chevrolet schedules called for 32,-

8,400 trucks the past week.

Elsewhere,
weeks

divisions; Ford Motor

looking for increases

expected

were

34,500

cars

17% decline the pre¬

a

declined,

were

for example,

plants working
cars

available

'

porting six-day schedules.

700

also

Motors

ago.

Ford

were

producton rate will taper even

reflecting sharp drops at all

and

cars

8% under July totals of 659,808 and 107,207.

Saturday operations

week;

1954 week.

weeks.

Motors

week,

Packard

and

161,370

same

Moreover, August has three extra work days than

in

11% de¬

August programming, which is geared for 611.C00

in July, indicating that the daily
more

an

manufacture last week.

Reports" estimated Aug. 1-6 production

22,815

week ago and 105,421 and

a

line

history,

this

than the

higher

sharply

but

May

points out.

vious

Dividends at

mon

"

14£

up

paid lor 20 years in

$2.20

EMpire 4-0161




thought

to suggest a net of around $4

those attracted

50 KING STREET WEST, TORONTO,

WINNIPEG

pick

for 1955.

in

OTTAWA

will

to the retirement of
the
preferred;
and
this year's
business is humming along at a

might

MONTREAL

us down to capital¬
couldn't be simpler,

this year, due

best

Head Office

it

—

merely 960,000 shares of common
which
earned
$3.71
a
share in

1947.

Inquiries invited

brings

ization

pace

to

they

26,136

ture). '

offers

with

areas

desperate effort to restore a

a

states

reason

caught

even

—

Bradstreet (if it is
a

offset any
Department

1954.

are

in

market.

were

due

rating

the

this week.

end, the D & B current asset ratio
was
3.4
to 1; and net working

credit

Since 1921

the

situation

the preferred was retired
during 1954, and total book assets
stood at $41,902,470. All this would
entitle Dun & Bradstreet to a top

Canadian Investment Securities

service

to

treatment,

term,

Underwriters and Distributors

wire

order

sheet

capital stood at $15 million. There
was no
debt, bank loan or long-

McLeod,Young,Weir & Company

...

allotments

entire time to coldly

copies each month.

able.

nine

the

in

come

producers

tomer

globe,

the

of

corner

every

subscribers to D & B get a unique

are

in

$301,400,000,000

The

each
blood
of enterprise, from al¬

pressure

from

weekly,

rapidly outmoded, this specialized staff, recording
day the temperature and

gets

massive book is revised every two

than

number of

^declined

$286,700,000,000 of June,

and the West Indies.

New Zealand

appro¬

oil

the

(1951)

big new

its
This

that the

fact

Commerce

June

Steel

11 story air con¬
ditioned
building at 99 Church
lease
totaling $50,000, involving fabulous "Reference Book."
Street,
New
York,
and there are
is
quite a book, listing around
$4,000 in alterations (made by
branches scattered on
three million concerns, describing over 200
you before they move in) chances
every contineht except Asia; plus
are
you'll swiftly seek a Dun & the line of business and the type
Kansas

from

the

the

quite immune from
competition.
Ninety-Seven hun¬
dred employees devote their full
time to gleaning, analyzing, sum¬
marizing
and reporting, editing
and printing the vital statistics of
business. Headquarters are at the
it

due

disclosed

also

Department also noted that personal income
slightly from May but was still well above
year-ago
month.
It was the first time since January the
total failed to show a month-to-month rise.
Work stoppages in
the auto and
associated industries, and lower farmers' income
in the month accounted for the decline, the Department explained.
Personal income in June was at an annual rate of $301,200,000,000,
The

can

you

has made of business
all over the world, for
decades, and
the vast store of
credit information it has assem¬

supplier of special credit

a

reports would be

foregoing,

activity,

bled,

jobs

auto
It

industries should more
to model changeovers,

furniture

and

in

large labor surpluses dropped to an 18-month low in July.

it

erage

of 149 job centers surveyed looked for "slight,
gains in hiring between-now and early autumn.
employment in the construction, steel, electrical ma- i

moderate"

to

noted.

Men!")
the

understood,

is

ago.

year

a

employment.

up

it

compensation,

Employers in 75%

chinery

"Of

with

in turn, helped to step

unemployment

-

Employment prospects for the next two months were pictured >

drop

Sales¬

easily perceive that Dun & Brad¬
street is a big organization, and
that because of the extensive cov¬

Dun & Bradstreet as

To regard

and

Time

connection

(no

From

and two widely
Confidence in

"Of

Failures

good, according to reports of the U. S. Department of Labor.

as

Increased

"Man's

and

Mice and

■'■■■*■/■

1939.

in

Failures";
films

man"

and

ing

ness
seen

for

markedly fewer than

were

price

Man"

appraising the varying
of trust or degrees of corporate and personal
The threads of D & B
confidence solvency.
earned, or es¬ go way back to 1841 when one
tablished, by Lewis Tappan established a Mer¬
Ira U. Cobleigh
prior perform¬ cantile Agency. Continued through
ance.
Well, probably nobody on a series of organizations the busi¬
earth is more renowned as a de¬ ness was incorporated in 1930 as
tective or appraiser of
business the R. G. Dun Corporation, merged
of Bradstreet Co.
in
and financial credit than Dun & the assets
Bradstreet, Inc. Their confidential 1933, and gained its present name
by the amount

Wholesale

and

,

Claims

charts and indices.
And there are pamphlets of an
educational sort such as "Getting
Ahead
in
Small Business," and
"The Where and-Why of Busi-:
Food

have

Bradstreet

&

Dun

Prices,

modity

is
all

Production

production lor the country-at-large in the period
Wednesday of last week continued to advance with

op.

struction and agriculture,

Com¬

Wholesale

indices,

Sales

Auto

Business

operations set at or near capacity in many industries. According
to reports, total output surpassed the year ago level by a very
comfortable margin.
This heightened activity in industry, con¬

Latin American

D & B banner are

of

And

is obvious.

the country

that

service

credit

a

value

vital

over

you

Corp.

City.

That

of

not

or

Skypie

to

misplays and los¬
ing games, in the boxscore of
business.
Also issued under the

By

Price

Industrial
ended

ing the errors,

good

pretty

a

sort

Index

Food

future

possible

at

and Business Failures, a
of necrological sheet record¬

trends,

credit? Fast

doubtful?

or

whether

lease

Kansas

or

have

to

as

should

sys¬

credit.

—

And

payments—cash

on

look

Trade

Commodity Price Index

and Industry

Week.

forward

Finally, there'll be a paragraph

you

and say,

e

Output

Retail

State of Trade

And there are a couple
of somewhat related
summaries,
Businessmen's
Expectations,
a
t

company

a

of summaries of conuitions
assorted
industries
such as

in

Production

Electric

Carloadings

Apparel Outlook; Compass Points
of Business; and Trade Review of

Encerprise Economist

motto,

Steel

The

group

By IRA U. COBLEIGH

Some investor-slanted notes

e

vacation.

Willys
White

truck
Motor

ventory the week before.

output

had

returned

to

heen

halted

action

for

two

following

in¬

However, industry truck volume still
Continued

on

page

25

Volume 182

Number 5454

...

in

tions

Oar American Way of
By

Life

Observations.

general economics and its under¬
tones, but also, and perhaps pri¬

Ex-President of the United States

marily,

By A. WILFRED MAY

current

our

life, points to our recent advances in mechan¬
ical, cultural and spiritual fields as indications that the ideals
now

possess

mean

life.

During the last
our

score of years
American way of life has been

deluged with criticism.
from

our own

It

.genuinely
wish

to

In

rem¬

of

over

mistaken

pol¬

and

the

secret

point

*

Marx

our

way of
Criticism

on

words than

the

Herbert

Hoover

earth put

ha¬

plore

the

political parties to de¬
opposition.
It arises

we

dirty

linen

from

in

secret.

It

.

Our

comes

And

where villainy is pursued
by law and virtue triumphs.
it

minded

believe

from

comes

totalitarian

that

the

world

ties,

fuzzy-

liberals

Record

War

could

we

no

who

and asked no indemni¬

wars

We could

our

creeping collec¬
tivism
can
be
adopted
without
destroying the safeguards of free

point to

We could

it by the billions
have made as gifts

dollars

to

save

abroad

governments from

our

system.

And

it

tried

to

a

frain

if we look at the
alone, we seem to be

very, very bad

in

gaged
But

wc

and

way

decline and

our

should lift

our

tion

something good

14 million

en¬

Negroes

our

about

our¬

just

could

Standard

point

out

that

our

way
of life has per¬
fected the greatest productivity of

nation

standard

in

of

earth;
that our
living is the highest
on

the world.

our

We

could

or

the 300 million

Africa,

And

point to

constantly improving physical
and
iengthening span of

health

could

say

does

all

this

freedom

that

mean?

of

mind,

♦The

Mr.

concluding portion
Hoover

on

the

of

an

occasion

81st

Birthday
celebrated
Ore., Aug. 10, 1955.

at

a

It

of

of initiative still lives
America.
It means that our

in

people
faith.

are

strong

Here

alone

addro^s
of

his

Newberg.

anguish?
she

suf¬

controlling

interfere

with

investment

rational

a

or's

Such

bility likewise

policy.

avoidance

of

ly from recur-

May

of

from Aunt Tillie

about

their

ploits

in
she

or

news

the manicurist

get-rich-quick

ex¬

fast-moving issues?
become unduly anx¬

over
a
drop in a non-Blue
Chip selection? Can she withstand

that

greatest

verv

suffering: seeing
further

she

after

of market

cause

a

stwk advance
it?

sold

has

emotional

makeup,

along with financial factors, in
achieving a sound investment pro¬

Linhart Stearns, investment
counsel, now comes through with
gram,

badly-needed book on the sub¬

ject of the investor himself (How
To

With

Live

Your

by Linhart Stearns.

Investments,

Simon

N. Y.

and

Schuster. 142 pp. $2.95)

much risk
a

vastly

a

man can

more

in

after you
you are

the

that

us

only

ht

fu

.<Th

mind.

there

that

about

market

is

and

it

comes

so

little
stock

the

between

correlation

And

business; how quota¬

either

bullish

or

bearish

in

0£

Realistic Futility

also

register

reality
their hope and

phasizes the trading in symbols—
stocks
than

against

the

value

dollars
of

the

—

volume

contains

the

of theory,

area

dollar-and-cents

practical

rather

participa-

There
that

we

is

addendum

major

one

Mr. Stearns' in¬

offer to

valuable contribution: Should not

bestir

investor

the

himself

the

to

rather

and

healthy
than

merely

constructive;
to

recognize

and pander to them?

the

sunlight of the human spirit. Here
alone,

even

with all its defects, is
but an

accomplishment.

can

Bank of

re¬

ligious faith guarantee there will
be no decline and fall of Ameri¬

America

civilization.

Bank of America is the

growing",

world's largest

publicly owned bank servicing one
the fastest

sorrow,

sudden

passing

on

August 1st, 1955, of

areas

tution's past progress

why, in
the

growing

have

and

of

in the U. S.

Special Report records this insti¬

Our

with deep

announce

our

and discusses

opinion, its shares should

particular appeal for institutions
individuals seeking growth in¬

vestments.

To receive

Clarke L. Cowan
Vice-President and

and

our

a

Director of this firm

close associate for many years.

write to

a

complimentary copy,

Dept. T.

Walstoii&Co.
Members New York

120

Stock Exchange

Broadway

TSew York 5
SAN

Midland Securities




FRANCISCO

LOS ANGELES

LUGANO

Limited

36

NEW YORK

SEATTLE

PHILADELPHIA

Corpn.

to

change his psychological attitudes

open

human dignity not a dream

a

of practical investing pitfalls.

of the dif-

Consequently, there are

despair.

our

value in enhancing the avoidance

of Timing

their opinions of economic
but

the

so

fascinating in the

their effects.

This gets to the roots

says

wealth of self-revelation not only

"Firmly rooted... still

We

f

,

"Doctor" Stearns.

tions reflect illusions which could
be

drives,"

aggressive

The author shows how

take,

should arrive at your in¬

vesting rules.

On the other

decision.

a

often
inability

too

the

for

psychologist and psyc latrist, '
■
themselves than as rationally ac¬
who are qualified to do the nec¬
ceptable
goals for ego-inspired,
essary
job of reading its mass

times when the stock market em¬

to

theory

suWect o£ how interested the gressively to outsmart, manipu}™bli?.
^U_?f A"
It is not the economist
but late and even exploit their fellows.

ket.

psychologically as well ag
prepared

the
cloak

a

the

market Pe»P'® vote not only

is

as

to

odds in-

It

with

used

hand, the author points out that
anticipate
(conversely) undue concentration
such quantiative data as national
on the special siauation operation
income, savings, profits, etc., im- likewise reflects
psychological foiplies no concurrent ability to
guess about the more specialized
bles, dominated by the need ag-

ability

ficulty of market timing: "In the

risk."

ism;

to make

reminds'

Stearns

economist's

important question

have estimated the risk

economically
that you

"How

stand is often

the exact gambling

volved

Psychology Vs. Statistics

the

Agreeing with such recognition
of the crucial importance of the
individual's

buy-good-stocks-and-hold-them

merely as a rationalization of their
inertia, mental laziness or defeat¬

pockbook

misfortune.
Mass

to

people religiously follow the line

phychiatric areas, achieve¬
self-knowledge can fur¬

the

ther

applies widely

other investor policies.. Too many

of

ment

of

the guise

in

escapism

the investor's evasion of responsi¬

generally

Thus, like the major premise in
other

of

anxiety by relieving him
responsibility.

religious

in
are

windows through which pours

These ideals of freedom and
by

Wilfred

A.

than

we

un¬

our

spirit and

American

any

that

good deal more.
What

Living

in

fact.

means

Highest

mentioning

American Negroes own

All of which is not boasting, but

i

men¬

selves.

We

collapse.

deeply the lag in

automobiles than all the 200

million Russians

unto

the hills from whence cometh

help. We should occasionally

from

more

fall.

eyes

I feel

as

giving an equal chance to our
Negro population, yet I cannot re¬

we

help.

Altogether,
criticisms
in

millions from famine and

Much

even

from free nations whom

comes

we

losses
her

Does

a

American
have

overthrow

advance¬

prove

bitterly and daily

who would

our

the spirit of compassion.

ment of

from the Communists at home and

It comes

territory,

other nations.

over

of

men.

of

acquisition

no

domination

Do

term

ious

suggest that we

alone, of all nations, fought in two

dents

And

more

tnem

-

popularity rests on the
neurotically
based
compulsion to reduce the investr
Formula

under¬

stand his motives and does not let

psychological environment

his

or

ing for psychological ends if they
reduce
dissatisfaction, with
the

that the. investor

judgment by either the
emotional instability

individual's

portant an aim than contentment;
and, stressing realism, that there
is no definite objection to invest¬

proviso

the

with

ence

dollar-and-

that

cents success alone is no more im-

fer inordinate¬

Would

love of sensational inci¬

our

have

conclusion

the

For example, he
function
of
formula

plans in eliminating the interfer¬

is

credo

as

rent

table institutions than all of them.

from the forthright refusal of the
American people
to wash their

author's

of

state

due

together.
spiritual side,
hospitals and chari¬

the

to

the

cause

the

of

shows

Health

Basic

the market

paper

On the moral and

•

our

other 94%

of

sho«rt

more

all

to

state

her mind.

enumerate more
printed serious

probably

libraries and

not

much

the

in our institutions of

youth

could

daily

comes

from
bit of

a

higher learning than all the rest
of the world
put together.
We

of

Karl

so

could

we

was

directed

that with only 6% of
population we have

out

more

the

influence

field,

re-

action

world's

the

es¬

pecially

life.

cultural

s u r-

my

prise,

police with slave camps.

the

In

without

differences

their

settle

her

to

field, we

governmental

suggest that our supposedly
decadent people still rely upon the
ballot and the legislative hall to

my

anxieties

icies

question ($164 bil¬
lion): "Is the market too high to
buynow?"But
to "that"

get

in¬

various specific

in

factors

vesting policies.

Pocketbook

and

is now usual to

longer than

take

could

edy
them.
Among these I
myself have
joined
be¬
cause

the

of our people

genius

has, by millions of labor-saving
machines, taken the sweat from
the backs of most of our people.

comes

people who deplore

faults and

our

could point out that

We

mechanical

cal

Emotional

not

especially

bear

the

(In One Volume)
weekend's hostess did

Last

which

security trading.

Interestingly and constructively,
author shows the psychologi¬

PSYCHOANALYZING THE INVESTOR

decline of American civilization.

no

phychological

the

with

influences
on

American way of

we

enter¬

underlying

the

The problem of timing,
then, is concerned not only with
prises.

HERBERT HOOVER*

Ex-President Hoover, in replying to criticisms of

5

(565)

Financial Chronicle

The Commercial and

(SWITZERLAND)

Offices Coast to Coast

6

The Commercial and Financial Chronicle...

(566)

new

a

Some Uninhibited Remaiks

<'•

Noting that the current stock market is bewildering, Mr. Shaw
have

recent industrial

we

in

are

a

new

era,

experiences
Take it from

no

who has missed

one

the boat almost

completely in this
rising market since the fall of
1953, this stock market is bewild¬
One
ering.
times

ing

some¬

if

about

the

^ahead

Four

of

years

shortages, then
frantic
to

efforts'"

catchup

with

Shaw

B.

Fayette

pent-up

.demand; then
approaching
saturation

of

the

markets; then Korea and renewed
inflation; then another seeming
approach to saturation with busi¬
ness
tapering off, and the market
starts
rising.
Then, as business
declines, the market continues
accompanied by relaxa¬

buoyant,
of

tion

credit

conditions

which F.H.A. and V.A.
and

guarantee

renewed

under

insure

can

with

mortgages,

housing demands; frantic

production of

strike; then
tlement

cars

to anticipate

a

strike due to set¬
biggest sell-out of
dic¬
history?), and re¬

no

(the

the American people to labor

in

tatorship

confidence.

newed

must

minor

With

—at

•business
of

the

least

booming

on a

debt

booming

and

dangerous expansion

the

push

ahead.
,

do—and

averages

optimism

market
,

-

ever

ery.

find their
producers
to buy labor-saving machin¬
Hooray, machine tool orders

will

rises

equipment

.

is isn't important, only

whgt peo¬

ple think is is important.
And if
•enough think that the market will

rise,

however

flimsy

their reasoning is, it
who

man

will rise. The

ahead

gets

sound

or

and

makes

bis killing is not the one who sits
down

figures out

and

pos¬

every

sible

factor, but he who correctly
anticipates or guesses the public s

mood, its feeling towards the

mar¬

Not

rule,

and

alarm

emotion

but

reason

the

all

is

pointing

the

with

market declines in

to

1929,

3931,

1937, 1938, 1940, 1946, 1949,
maybe others, goes unseen in

and

the roseate glow that overwhelms
all

suggestions of
picture.
But

I

still

in the

grayness

refuse

to

accept the

idea that this market is
street

onward

ever.

The market

and

a

one-way

upward

for¬

to

have

seems

his

own

n't really, don't you know,-because we're in a new era, and all
the experiences of 1920, 1929, 1931,
etc. are just so much ancient history, and all that rot. But will

know

I

I

am

dampen

to

hesitates

much

isn't

down

So the market

is

There
market,

easy

the

in

rise.

the

resumes

credit

it won't have much effect

so

as

and

exolanation

Pat

Very

*

convincing indeed'

\

'

respected
the

in

of

the most

powerful

agencies

have

we

and

one

smaller

hundred

When

of

really

a

there

been

est

Motors

could

not

GAW with the present

Third, maybe
knell

of

the

ances, etc.;

tion), so.why worry?

Are

support

staff?

is

regrettable

of

manufacturing
into

more

fewer

go

is

to

•

see

stronger oligopolies that have less

Most

people

doctor's

respect

wish to have

may

Isn't this like

a

greatest respect?
portant

the

latter

industry

It

policy that made
in the 1920's

great

1930's, but those days are gone
forever,
and
business
manage¬
along any economies to

ments pass

labor—a

favored

congratulate

each

other

amicable settlements.
ler

survive?

19%

of

that

share

but

12%,

recently

in

and

a

period of declining sales, it could
slip again.
We

thank

can

the

for

unions

giving the most powerful impetus
olies

in

thank

oligopolies

and

executives

businesses in

of

we

the

can

biggest

for abject

America

surrender, step by step politely
please, to every demand that la¬
bor

leaders
of

are

with

no

good

make.

Stockholders

account,

and giving in
is easier than

manners

defending what is right.
what

to

difference

executive

an

$150,000

does

(paid

give

to

it

Federal
It's

doesn't

mean

Besides

•

make

the

etc.,

etc.'don't

to

in—and

does

all

apply-and

^

u

e' 1

.

market does go

e

down

stodc

2 5%

vields

the

sound

a

of

use

our

mar-

to

Sta?d!

unemotiona

sers

Yeh9

'vn„nd

A

investment

for

not

•

frianH

your

of

department

thn

in

find

by the reasonable use of market
credit
through
margin
trading,

for

motive

securities

listed

the

settlements

let's look

other considerations.

at

(There I

again, looking at other things
than taking the emotional
temper of the American people.)

go

rather

This

certainly

will

lead

to

more

inflationary pressures as demand
continues unabated or rises.
But

the

remember

people

benefit

flation, and
as

prices

that

not

evenly

all

If

the

by in¬

seemingly

unabated demand for
slows up

cars
actually
because saturation is ap¬

proaching, these labor leaders who
are so

high-handedly riding rough¬

shod

over

the

people,

may

earn

find

his pay!) what the unions

like this could

employment
earnings
course

mean

but

and

no

not

only less

sharply reduced

dividends

reductions in

—

but

of

executive

salaries, lush expense accounts,
plush club membership, Cadillacs,
or other perequisites.
Heaven for¬
if

business

in

years

to come, how

venture capital

be induced to

Fourth,
face
can

GAW

start
are

known

new

to

and

be

losses

men

must

enterprises?

If

gains

appropriated

by

labor

to

go

stockholders,

where is the incentive to risk cap¬

ital?
some

Of

risk

course,

their is always

venturing going on, but

financial

institution

rnllpaenp

olripr

several

rpsnnnsihlp

dollars

million

trust funds

man-

Hp onined

out

they
of

stable

the
or

are

pricing

market.

declining




In

themselves
a

time

demand,

of

in¬

once

it

this post-war joyride

will

be

get ahead.

less

easy

is

over,

to start and

Oh, I forgot, we're in

the

a

was

for

made,

further inquiry

investor's

the

purpose

investment

motives.

We

a

long

and

short-term

invest-

J

margin

transactions

are

svnony-

mous

'

vest-ert is a transaction which
has been or probably will be closed

'

out in not less than 6 months, or
which income return was
the principal reason for purchase.
A trading transaction is one which

one in

is a volume, he noted, the Ex- has been or probably will be closed
change considers healthy in view out within 30 days, plus all reof the large number of shares— ported short sales and purchases

of

that whpn

3.4

peo-

billion-now listed, and in to close out short sales.)

li?ht of the size and growth of the

pie had indicated that the market

(3)

Transactions of an invest-

"It permits the present ment character, two-thirds of all
of the stock market, volume, set the tone of the maradded, "to mesh properly in
Some 86% of activity by pub-

really had reached
the top, and>^.economy.
he sensed an impending down- operations
that

was

setback in

a

not

just

a

minor

rising market, he

was

country s vast economic ma-

-

'
L „
highlights

prepared to sell millions of dollars

chine."

worth

Among the
study were the following:

of

equities, clear them out

wholesale.

A

ford to hold
and
to

no

do

rich

through

man

a

can

af-

big decline,

doubt many rich men plan
so.

Investment

to

But when the crisis
or

many

come,

how

of

these

many

.

-

of

-

the

(i) Margin transactions by pubindividuals represented
only

individuals,

for example, was

for long and short-term investment. In addition, institutions and
financial intermediaries—estates,

investment clubs

really comes, -through margin accounts actually Past*
Tthink it has were on a cash basis, since they(4) The public's

will sit by calm-

and

personal

holding companies—accounted for
24% of total share volume.
The
°f total volume. This was a
june study revealed for the .first rise from the 14% figure reported
time that a sizable portion of trans-^^ December, though it is not as
actions
reported
as
processed high as on some occasions in the
bc

managers

hold through a decline
(not their own, of course, but
others').
plan

.

that

is

ment purposes. It is clear that the
assumption so often made, that

■

fnr

worth

hetoought'thattheAmerican

turn

bid!

of

many are crowded out

rise.

he

at

December

striking number of margin
transactions—77%—were actually

our.

on

'

caPabk <" handl'"S.'

well

a

0f

the

the studv makes

Mr. Funston said added meaning
gain?
He gets his salary anyway, ageing millions of dollars of trust was given the findings because
Ford and General Motors as in¬
study took Place| ounng two
and, maybe he has as much as 100 funds heard one of his older colevitably leading to higher prices
shares—he has nothing to lose and leagues exoress the foregoing view c'ays when trading volume averand
continued inflation.
Maybe his
at
lunch. .But nearby was another a§ed about 3 million shares, This
job to keep.
But a decision
it will mean that.
But

interpreted

last

from

stays away from tips and rumors, win be closed out between 30 days
and assumes only those risks u is and 6, months. A long-term in-

-

™ino

nf

margin

with trading transactions, is
"We would like to see the pie" not warranted based on . these
ture
this way' and " wiu « facts."
■
the inves.tinS Publlc seeks compe(Under the terms of the study,
tent advice» Sets the facts, peri- a short-term investment is a transodical'y
action which has bueen or Pr,obably

man"

money

which

derlying the public's transactions,

Exchan«e-

be too high at its

price—but

through

is not comparable to

reflect

surface

people.:

into

chase

.

far

It could

figure

transac¬

Re«ardinS "}ar£n activity,

public is taking towards the pur-

Bui

5%

present

decline

strong
generally un-

investment

some.

from

of

detailed indicated.

a

kef place by the American
This is evidenced by the

h! discounting the^futm*e

ahead

that

—

cash

■;

;

40%

those in previous studies although
.

Provide

processed

on

de-

public

by
for

Again, this

excludes

accounts

Bii

-

a

.

.

accounted

activity.

tions

*
'

show

from last De-

■/.

-

—which

hSin innJ^iv ww'and by the reali£tic approach the

WgL^Tha^^er—we hopr
a

their

10%

transactions

individuals

;

15 would

.

fiects

is

good to hold indefinitely. What

if

study,

-margin

on

8 and 15, Mr. Funston ^he Exchange noted, "Since a marsaid' "We see 3 picture that re~ gin transaction will not, on the

Investment managers don t panuv They
ave
sound
judgment and t ey
take the long view.
Besides, they
are handling other peoples money,
its

in
the

on

the ~current

about

Margin

on June

this market.

up

-

®nal^'s 0! s!°c,k ™arket funston

a

holding

,

find-

which

inSs'

that

that

buying

the

Ex¬

If the

calculated

traded

cember.

,

■>

Commenting
on

-V

investment

is

clinp of

■,

institutions.

Armthor nnint inWocfc mo
ir»t
Another
point interests me a lot.

It

••

•

L J,!t?,t;™

at

1911

•

.

not

are

the

previous study

as

shares

June 8 and

•

"•

the

Who's

\

lemons nf 1 <VM

era

$50,000

from

-.r

'

fun, you know.
It
anything, we're in a

new

rot

your nose

Reserve.

Fed?

monop¬

history, and

our

the

>"*

ment, particu-,
larly among

im¬

as

-

.

15

in

it is estimated that the proportion
of

,P^L:.
invpJ_

rm

'

to the hospital and have surgery?

has

it

now

market,
was

their

on

Can Chrys¬

Right

the

then

few—and

-

and

those

were

basis

;same

f0

"J™ g

8

to
the

of

^December

„

4

June

on

results

thr

+

consultation.
diagnosis

Isn't this

V

.

*

.

.

.

change's •previous studies.

"

market

marefn
df
■ f
t
_[ad'"g'a"d a: •

doctor's

So, stand and thumb

"

asonahlp

...

t

they

-

-

.

.comparable

duced

careful decision to go

as a

cash basis.

a

Presi-ttions

Exchange

Funston,

nf

competent

though

a

on

showed

.

/••rmciiltafinn that rlf>cf»rwf»c thf»
consultation
that deserves the

a

or a

were

*

immature.fran,-

a

diagnosis,,

along economies to the public.
the

is

J

.

at";

authority for the sheer joy
This

\

.

Keith

,•

defiance?

fifth

Results of the New York -Stock ;In the past,'rthis factor , was not
Exchange's fifth Public Transac- determined and, as a result, figtion Study released on Aug. ID by ures ; describing margin transac-

"

noses

"Public ; Transaction Study"
a strong emphasis on longFinds 70% of small investor transactions

Exchange's

investment.

term

people thinking of to
d
in
ever higher, prices?

incentive to reduce prices and pass

was

'%

N. :,Y,' Stock

Investment

^

they thinking that this doesn't '
apply to them but only to others?

and

more

hands

.

great- *

Are

that this is possible, for to see the
car

of the

one

they thumbing their

high

independent produc¬
Motors and PackIt

in a massive specula-

shows reduced margin trading and

are

acquiesce

this is the death

ard-Studebaker.

.Of course this-won't happen.
I've just been stupidly wrong all
the time. The market will continue to go on up. .Everything is
fundamentally, sound;
There's
been no speculation worthy of the
name (only the piling up of debtt
at the greatest rate in history—,
for homes, cars,: furniture,, appli-

more?

.

in the world and de-

powers

What

American

ers,

too

serving of respect.

there

was

slowness in sales or was
gripping fear that Amer¬

a

ican

production,

Its decisions may have
little and too late, but

it is nevertheless

just before the Ford

agreement in a downward adjust¬
ment

mistakes and others' mistakes and
to make new ones-

world

integrity.

off several

Motors laid

men

with the God-given right

us,

of every man to repeat his own

Culkv of Stock Trades Made for

forces.

working

American

with

bile boom (at least taper off), and
daY firms will find they
kave all.' the capital equipment
they need f°r something even in
an-expanding economy. If investment managers begin to reflect on
these things, how many of them
will actually play golf calmly, etc.,
while they * watch their equity
values slide 10%, 15%, 25% or

"

Here

Then when

all want to sell, who is there to
buy? And if people like money
managers think the fall will go
further,—why go" on? Tt could
happen.- It has happened before.
And our capitalistic system is still

some

Twice the

,

investment managers really risk

sometime, as should the automo-

I

taking a stand. ?:It&
Second, business men who may ; people are warning the American ;
people.
'They
are
basing. thek
find business not as enthusiastic
as
before (there are some) may judgment on a thorough study Of " •V
all pertinent conditons conducted
feel that they cannot come up to
GAW with their present payrolls, by men of great scholarship, ma- *
tured wisdom, and unquestioned
so they quietly lay off men to have

towards

ket.

stupid.

requirements'

must

increasing,

be

credit enthusiasm.

and

It only goes to show that what

greater extent,

a

Federal Reserve has raised margin

nv

setbacks, the market forges ahead

to

I'm not in the market.

mutually

some

rise, and the market
(joyous rubbing of hands).

and

war

contradictory,

seek

ket.
•

time

another reaction of the market.

from the
Ford and G. M. settlements. Some
flow

to

expect

orders

mar¬

slack

rely less on suppliers.
So
there is unemployment there too.

count.

would

ital

this

in

-blasted

losing

ployment Act of 1946, just maybe
—judging by the failures of the
New Deal in the 1930's—just maybe> "ow only just maybe, mind
y°u» the Government won't find
as easy as People think, to
maintain full employment and full
production. . After all, the hous-

and

First, the manufacturers of cap¬

getting

isn't

man

But people seldom
look beyond
this scale may lead the immediate future so that is no
unemployment, not inflation.
-problem.
'
Then I cannot but be amazed at 9nS boom should come to an end
Here are some of the things I

worst obstacle

to

in

strengthening, and all of them of
unknown magnitude. There is no
particular order of importance,
but I must begin somewhere.

in¬
isn't

to

a

and

doubled

tripled in two years. The reverse
could happen. Of course, it could-

fleet that in spite of the Full Em- it and do nothing?

creased pay on

are

try¬

be

to

telligent

Questions

and thus past stock market

longer

if

Some stocks have

Even

money,

gratulations before newsreel cameras)
then ' thev will likely get
the idea of making their own parts

developments which

should affect the market value of securities.

or

whether

wonders

and other

out quivering an eyelash?

he has his job to think
ufactur'ers must face up to GAW °f» kis record to think of, pride
(and 52 weeks at 100% pay will in accomplishment, the desire to
be the goal eventually, with high- iook his fellowman in the face,
er and nigher pay
and executives hold.up his head, and take pride
will politely give in amid conin his success. And he may re-

By FAYETTE B. SHAW

on

ly and really let it happen with-

a

A

Fifth, if Ihe American car man-

Undergraduate Division, University of Illinois

comments

have

never

thousand pardons, please.

About the Stock Market
,

We'll

era.

depression again in our time!

Thursday, August 11, 1955

did not involve the

use

of credit,

dealings

were

long-term, cash
the largest single

Volume 182

Number 5454... The Commercial and Financial Chronicle

of volume

source

the

on

that

Exchange

factor that has held true since
the first study was undertaken in

(5)

The

small

with incomes

From

—accounted

dividuals'

A

investor

that

87%

were

for

of

their

Most transactions

on

bears

a

outside

New

of

Ohio

and

such

The

Pacific

have

City

and

small

a

Public

only

Transaction

Studies

two-day period, and

a

definitive

are

that

dent,

only

for the

The

Study

common

covered 'over

days

:

and

preferred

bought

were

June

8

and

15.

and

It

preparationi and

sold

-

i
-

on

involved

any

luck such

for

many

had

individual purchase

an

made by

the public.

'

detailed

study

of

more

a

the

when

I

in

do

not

the

1929

stock

all agreed, right

mean

to

But

on

Bargeron

the Food

as

stride, and

it not occurred.

collapse

occurred.

Continued

from

Dun & Bradstreet—

at

are

and
D

or

near

trending
&

B

an

*

This 'announcement is neither

an

Y'.y;
NEW

historical peak,

ISSUE

.

•

has unquestionably

he

gone

has'

done

common

S.

Joins Baxter,

with

McCleary

&

Incorpo¬

Co.

.

Mr. Pierce

Florida

the

of

was

He

of

the

Dealers

a

the

joined

&

;V.On

hand today,

every

we

Miss

with

previously

was

Olderman, Asbeck & Co.

of
member

Gasparilla Krew.

With Coburn Middlebrook
(Special to The Financial Chronicle)

HARTFORD,

(Special to The Financial Chronicle) 1

Wis.

MILWAUKEE,
is

Jackson

The
■

Baird
East

&

with

now

Ebe

J.
W.

Incorporated,

Co.,

Wisconsin

discussions about credit

dlebrook, Incorporated, 100 Trum¬
bull Street.

Avenue.

•

.

\

$20,000,000
fOREMOST

fORMHtOST

Dairies, Inc.

\debt *' at "an

all-time high, '
credit, ,and
national
debt, ditto. We're getting to be a.
gage

consumer

nation
likes

.

that

it!

lives

Since

therefore, is
nomic
to be

in

loans

on

and

one

of the basic

eco¬

of life, there seems
highly indispensable place

to

street,

screen
credit risks, to
and extol the good ones,
to
play a yellow, light on the
slipping ones, and blow a whistle

approve

to

he

the

"turkeys". It's a swell idea
give a guy credit—but only if
deserves

it!

arbiter

cellent
a

Dated

Due

July 1, 1955

July 1, 1980

scheme of things for an or¬

ganization just like Dun & Brad-

on

4y2% Subordinated Debentures

burgeoning credit,

facts

a

our

.

.

D

in

&

B

such

is

an

ex¬

The

Company is offering to exchange part of the Debentures for outstanding First Preferred

Stock of
the

Philadelphia Dairy Products Company, Inc. and the Underwriters

balance of the Debentures

to

holders of certain classes of Preferred

Dairies, Inc. Both offers expire on August 31,

1955.

The Underwriters

are

offering to sell

Stock of
may,

Foremost

during this

period, offer Debentures pursuant to the terms and conditions set forth in the Prospectus.

matters—

reliable sort of radar for sound

financial navigation. Pay attention
to Diln & Bradstreet and you may
never

Price

need to dun!

105%

plus accrued interest

With Mutual Fund Assoc.
(Special to The Financial Chronicle)

Copies of the Prospectus

SACRAMENTO, Calif.—Robert
G.
Lynch is now with Mutual
Fund Associates, 2101 L. Street.
^

may

he obtained in

any

State only from such of the several
lawfully

Underwriters named in the Prospectus and others as may

offer these securities in such State.

,

i

Joins Cunningham Cleland

Allen &

(Special to The Financial Chronicle)
:

*SAN

DIEGO, Calif. —Fred

Braubach,

Jr.

is

now.

W.

connected

with the Gunningham-Cleland Co.,

Orpheum Theatre Building.




Company

P.

joined the staff of Coburn & Mid¬

110

August 11, 1955

mort¬

—

,

Brady and Gladys J. Vauteuxhave*

Robert

—

Conn. —Edw.

I-

hear

Union

members of

Building,

Brennan

.

other

staff of

Co.,

the Midwest Stock Exchange.

past President

a

Club and

has

Williams

Commerce

Petersburg Yacht Club.

also

was

Baxter,

past commander

a

CLEVELAND, Ohio—Loretta A.

Brennan

past President

Security

Association and
of the St.

a

j

Williams

Moreover^

no

far to

(Special to The Financial Chronicle)

■\

associated

Pierce,

offer to sell nor a solicitation of an off er to buy any of these Debentures.
The offer is made only by the Prospectus.
"•* >
V

-

4

a

presents 1 depression-!)

share.

.

this

resistant qualities unique in char- »

acter, and duplicated by

*

* >'1

-

Robert W. Baird Adds

got there is one of the most interesting of our
No disparagement is intended in the slightest when I say

Report

higher.'

relations;

rated, St. Petersburg, Fla., passed
away at the age of 55.

-

...

'

.

4

page

A Favorable

.

.

Mr. Eisenhower really deserves the
A military man himself, he has de-empha¬

peace,

would have been miffed

story of how he
times.

of

foreign

our

the Dragon's

Eventually another Republican >gained the Presidency.

in preparation.

score

Thomas S. Pierce

time.

we

victorious American General, has reached

is. at peace.

the

Thomas

that we anticipated how far this col¬
Washington press gallery experts of the

our

or good de¬
their capabil¬

largely through the realization that facts
Communist China, apparently here to stay,
at least for a long time.
There is a Communist Russia in chargb
of Eastern Europe. These things were brought about through our
own
imbecility in past Administrations. But there is no way>
short of an all-out war, to undo them. So. Mr. Eisenhower, like
the British, believes, apparently, in looking the situation in the
face. He is not cocky like Roosevelt and Truman, given to shout¬
ing imprecations at foreign rulers.
And apparently the weary
American people have come around to his way of thinking.

say

we

it

He

behind

market

they made bad decisions

for that is that the country was never so prosper¬

reason

and

are.facts.. There is
Carlisle

Administrator in World War I and

late

as a

relieve world tensions.

Anyway, Hoover went out of office a badly discredited man.
And the Republicans went into an era of despondency.

of

role

outstanding

I

banks and other institutions in the
market is

the Food

lapse would go.

-

that

an

The

sized

Presi¬

White.'House

accomplishments

time took the break in
had

ijMr. Funston noted

as

tremendous

There it was, we

of

sale

or

been

whether
could

you

won't

"On

Calvin Coolidge did.

as

years

chance

a

the

to

War

He has made several bad appointments, he has
unwise decisions.
And the Democrats have made

thanks of the people.

subsequently. The build-up to make him
President had progressed over a period of several years. No man
ever won the Presidency with more
gifts, with more talent, with
more knowledge of how the American Government functions.
However, he was, politically, a dismal failure. He was a vic¬
tim of the times and this is something our people should keep
in mind when they go looking for heroes.
Hoover went through a bitter campaign with A1 Smith.
But
notwithstanding the keen disappointment of the Smith followers,
there came to be the realization among them that he had been ex¬
tremely fortunate. For a depression was in the air. It was prob¬
ably one of the many reasons that it came, but in those days there
was a general feeling that what had gone up
so high must come
down.
Wiseacres of the .time used to say that "it's the law of
gravity."
•
'' I
So, it was of no great shock to me and my fellow newspaper¬

about 80,000 reports, each describ¬

ing

ous

they

Administrator of Europe

men

the

processing

But he

•

.

stopk is¬

day, for a total of
approximately 13.5 million shares
that

•

1,200

traded each

sues

time

every

not

was

came

He had

him
-

of market activity, in analyzing who's who in the market
and
why, in throwing light on
problems of current importance,
and in developing data that will
be helpful in understanding future
developments."

rant you

life, from

engineer—an engineer of world renown—and

such

terns

He

who

one

through

he

cover

studied. He added, however, "they
are
valuable in tracing the pat¬

of

Cival

over this.
As a matter of fact, to hear them rave and
would think that Mir. Eisenhower should be impeached.
be; he won't even be defeated.

high glee

beating him.y;> /_
It is interesting to look back over Hoover's

t

the

as

the stomach

Administration.

steady

.

stressed

uncertainties

of telling

way

the

In World War II about the only

generals.

Whether

Eisenhower,

several

made

think of the chances of

proportionate decline, although
Angeles has moved upward,
counter to the regional trend.
Funston

the

earth.

on

Mr.

•

•

Los

Mr.

from

no

in

Back

be

the White House.

The Democrats with their Adlai Steven¬

get sick in

son

Californiabut

in the White House who got there
amazing set of circumstances, who
little of the knowledge of govern¬

mankind
war.

as

times there is

General.

the abilities of

President and

He came to

overseas.

cisions they were bound to win and any analysis of
ities will probably defy historians.

riding in high pub¬
favor, who is, indeed, looked upon.rather
generally as a great deliverer of. American

with

major cities

Coast

shown

nation

affairs that there is

and

men

lic

and Pittsburgh—show¬
consistent steady growth.

a

people, arid certainly his outward attitude
man
must think occasionally about the

the

very
ment which he had but is

Cleveland

ing

on

brilliant

a

troops

our

you can

an

has

certain Mid-West areas—the state
of

Yet

out.

lieutenant

a

get a line on was the Desert Fox, Rommel.
Our generals had everything in the world behind them, men
and the materiel such as could come from the most powerful

now

through

accounted for

York

man

-

Geographically, about 70% :
was

this

was

one

close to the octogenarian, Herbert Hoover, say

quite philosophical about the treatment he had at the

commentary

investment.

of total volume

he is

are

hands of the American

cash

a

Of the balance, devoted to
margin activity, 70% was for long

(7)

that

by small

basis.

short-term

victorious general.
In these days and

measure

transactions

investors—70%—were

and

With Harry's urging, Steve sold him to the
made Commander of

was

our

By CARLISLE BARGERON
Those who

at

he

he

shows

golf

office.

breakdown

activity

long and short-term in¬
vestment, with the remaining 13%
for trading activity.
,(6)

the News

Ahead

of public in¬

volume.

small

of

for 6%

year

a

was

"Washington's Burning Tree

Club with
then a devoted Secretary to Franklin Roosevelt, and;
Harry Butcher, head of the Washington Columbia Broadcasting
playing

Steve Early,

Washington

investor—those

under $5,000

Eisenhower, in the pre-Pearl Harbor days,

colonel

—a

September, 1952.

T

(567)

Salomon Bros. & Hutzler

The Commercial
S

and Financial

Chronicle.. .Thursday,

(568)

Gulf Coast Leaseholds

Dealer-Broker Investment

Life

York 5, N. Y.

Insurance

Company—Bulletin—Laird, Eissell & Meeds, 120
N. Y.
Company—Analysis—Cohu & Co., 1 Wall Street, New

ft

York

will apply the
retirement of $14,000,000 of outstanding debs., with
the balance being set aside for

send interested

to

New York

5, N. Y.

Kinnon, 11 Wall

Also in the

N. Y.

&

40 Wall Street,

Debt Situation—Discussion—Francis I. du Pont

McGleary Go. Elesls
New Officers

of

York 5, N. Y.
— Report — Leslie Securities
Corporation, 52 Wall Street, New York 5, N. Y.
Uranium Corporation of America—New report—McCoy & Willard, 30 Federal Street, Boston 10, Mass.

ganization, 100 Broadway, New
Transcontinental Oil Corporation

& Co., 1 Wall

Japan—Circular—Yamaichi Secu¬

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

McCleary & Co.,

115

Securities

in the

sions

Bank

Outlook,

Ltd.,
and

issue

same

of

ceeding George M. McCleary who
died July 31, 1955.
Mr. Knapp, a
member of the New York Stock

Tokyo

Ltd.,

Co.,

Co., Ltd.,

Gas

City

New York

City Bank stocks for the second quarter of 1955—
Laird, Bissell & Meads, 120 Broadway, New York 5, N. Y.

Over-the-Counter Index—Folder showing an

up-to-date com¬
parison betw een the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in

yield
-

the National Quotation Bureau Averages,

and

National
York

*

4,

market,

performance over a
Quotation" Bureau, Inc., 46

N.

Y.

'

"

"Step and Think"—Bulletin
—Peter P.

N. Y.

available

New

both as to
13-year period —
Front Street, New

;

on pros

McDermott &

Also

ing and

'

and

cons

of present market

Co., 44 Wall Street, New York 5,
bulletins

are

Jersey Zinc

Timken Roller Bear¬

on

Company

.

Uranium Stocks—Bulletin—Guss Securities Co., 165 Broadway,
Salt Lake City, Utah.
*

*

*

American Alloys Corp.—Report—S. D. Fuller & Co., 39

Broad¬
New York 6, N. Y.
Also available are reports on Hol¬
iday Plastics, Inc., Schmieg Industries, Inc. and Orradio
Industries, Inc.
way,

American
120

Shoe

Brake

Co.—Memorandum—McDonnell &

Broadway, New York 5, N

American

New York

Bridgeport

Also in the

5, N. Y.

Brass,

Robert

Co.,

Gair,

&

Co.,

bulletin

same

Broadway,

120

data on

are

Kansas City

and

Power

&

Light.
Armstrong Rubber Company—Bulletin—Gartley & Associates,

Inc., 68 William Street, New York 5, N. Y.
is

bulletin

a

Bank

of America—Analysis—Walston
Broadway, New York 5, N, Y.

Beaver

Also available

Co.

Mueller Brass

on

Co.,

&

Dept. „>T,, 120

Oil

Lodge

Bonanza Oil &

Mine—Report—L. D. Friedman & Co., Inc., 52

Broadway, New York 4, N. Y.
Central

Maine

Power

Co.

—

Analysis

—

Ira Haupt & Co.,

Ill

Broadway, New York 6,*N. Y.
Consolidated
mill

&

Cement

Co.,

Diamond

Match

—

Data

Street, New York
data

on

Eastern

National

Air

Corp.—Memorandum—Shearson,

Ham-

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

5,

—

N.

Nordeman & Co., 52 Wall
Also in the same bulletin are

Y.

Stone

& Webster,

Lines, Inc.—Study—Amott,

Baker

Inc.

& Co., Incor¬

Petroleum

15

Co, Inc.—Data—Julius Maier Co., Inc.,

Orr,

E.

tary; Miss

Exchange Place, Jersey City 2, N. J.

to

down

walk and not

a

Assistant Secre¬

Eleanor Wilson,

Assist¬

attractions to turn them

into

rector.

or

securities

will

for

a

gent

just where the new
be expected to hold.

see

may

extremely light thanks to the
slim outflow of new ma¬

rather

~

cannot be said of

same

tax-exempt,
comment in
trade circles. Feeling is that the
tax-exempt fraternity faces a real
municipal,

while back.

Street,

New York

of the New

announced

has

of Edgar

the

appointment

J. Davies, Jr. as manager

newly-formed industrial de¬

of its

partment.

Prior

to

his

Oppenheimer & Co., Mr.

joining
Davies

Vice-President of
First California Company Incor¬
porated'. ' \ '*V ■/'
:
; J
:\£
Assistant

was

| I With Reynolds & Co.
(Special to The Financial

Cnzomcut)

there is no | SAN FRANCISCO, Calif. —
^Spencer H. Van Gelder and An- ,
change in plans the huge General
Motors Acceptance Corp., financ¬ ?thony R. Kyrk have become asso- :
ing is due on the market next |ciated with Reynolds & Co., 425
Wednesday.
This involves $200 jMontgomery Street. Mr. Van
}Gelder formerly conducted his
mililon of 20-year debentures.
The last financing by this com- | own investment business in San
j Francisco
and prior thereto was
pany, done several months ago,
carried
a
3V2%
for a
similar ■iwith Hannaford & Talbct.
Provided, of course,

anything in the way of formid¬
able inventory. Quite the reverse,
stocks in
dealers' hands

But the

a

Co., 25 Broad
City, members;
York Stock Exchange,

Oppenheimer &

'

'unsold

terial in recent weeks.

for

Oppenheimer & Go.

i;

GMAC Debentures

Fortunately, the corporate new
issue market is not burdened with

are

E. J. Davies, Jr.

has

watched

closely

be

spell to

Secretary-Treasurer;

ant

A big reason for the slow-down
is the fact that, in the words of
fully
one observer, "no one is crazy to
discounted current developments
sell."
They realize that if they
in the money
market. But the
were
to dispose of any part of
majority lean to the view that it
their holdings they would face the
probably will continue a "drift¬
almost impossible task of getting
ing" affair through the balance of
such bonds back or even replac¬
this month.
ing them with comparable mate¬
Generally speaking the feeling rial at cheaper prices.
is that, as usually happens, the
Meanwhile, the rank and file
drop in the Treasury list very
of„. institutional buyers are vir¬
likely was carried too far and that
tually out of the market for the
some
order from
recovery is in
duration of the month, drying up
the recent low levels.
The cer¬
the remnants of what has not been
tainty is that the government list
a too enthusiastic buying contin¬

;or

amount

of debentures

to mature

Simultaneously, the Two With Hemphill, Moyes 1
firm sold $50 million of five-year i
(Special to The Financial Chronicle)
debentures with a 3% coupon.
LOS ANGELES, Calif -George'
A week ago, prior to the flaretask
in
cleaning up its "ware¬
jE. Brown and George D. Buchhoused" bonds.
This end of the up in money rates and the mark¬
; anan
have joined the staff of
overall market ties in closely with ing up of the rediscount rate, it
iHemphill, Noyes & Co., 510 West'

market judging from

list and naturally to

the Treasury

extent

the

the

the latter re¬
task will be

that

dealers'

eased.
The situation

this

in

is complicated b,y

deliveries

that

fact

the

sales

porated, 150 Broadway, New York 38, N. Y.
Empire

has

buyers.

not the
market for top grade
whether

investment

covers

Bruns,

Biscuit and

on

secondary

the

Corporation—Study—Price, McNeal & Co.,
Broadway, New York 6, N. Y.

165

real

will venture an

observers

Few

opinion

"peg"

Y.

Viscose—Survey—Abraham

Executive

as

and A.
entirely by reason of an absence F. Arcady, Controller. George O.
of
buyers.
Bargain-hunters are Craig, Manager of their Leesburg
always around but they must have office has been proposed as a di¬
slowed

Stocks—Comparison and analysis of 13

Bank

Knapp

Mr.

George

market

corporate

The

Electric Power Co., Ltd.

Tokyo

1954. ■■■ y
A. Beaton, who suc¬

Ronald

excuse

or

Stalemated

Co.,

Industry

Chemical

Mitsui

of

Chemical

firm

the

in March,

ceeds

has been
inception

since 1933.
since its

Exchange

for Vice-President and Treasurer, was
cancelling out their commitments! also elected a director of the firm.
to buy.
Other
officers
elected
were:

discus¬

are

"blow" such as

reason

some

up

analysis of Business Results and

and

analyses

and

—

"Nomura's Investors Beacon"

Rates,

Sumitomo

New York

Conventions

Taxation

S.

a

currently, dealers find that some
of their individual customers dig

Analysis — Nomura
Co., Ltd., 61 Broadway, New York 6, N. Y.
Also

Japanese-U.

encounters

ket

Inc. (St. Per-

ersburg, Fla.), members of the
New York Stock Exchange, suc¬

with

letter—J. R. Williston & Co.,
Broadway, N'eww York 6, N. Y.

Investment Suggestions—Monthly

Knapp, Jr., has been
President and a director

Arthur
elected

New York 5, N. Y.

Corporation—Bulletin—De Witt Conklin Or¬

Aircraft

Temco

Street, New York 5, N. Y.
rities

La.—Data—Ranson-Davidson Company,
Wichita 2, Kans.
Co.—New tviews—Lerner & Co., 10 Post

Corporation—Analysis—Glore, Forgan & Co.,

Stewart Warner

indexes—Smith, Barney

market.

real test for the

Square, Boston 9, Mass.

Office

Co., 14 Wall Street, New York 5, N. Y.

Investment Opportunities in

Cement

Riverside

Copper, Retail Trade, Oil and Steel.
Chemicals and Pharmaceuticals—Price

prove a

Incorporated, Beacon Building,

bulletin are discussions of

same

Company—Report—Thomson & Mc-

Street, New York 5, N. Y.

Calcasieu,

of

Parish

ties

Aug.

on

New York 5, N. Y.

way,

Letter—Fortnightly review of the Canadian Securi¬
Market—Newling & Co., 65 West 44th Street, New York
36, N. Y.
Chemicals—Discussion—Sutro Bros. & Co., 120 Broadway, New

M.

Company—Bulletin—Reynolds & Co., 120 Broad¬

Otis Elevator

»

Canadian

York 5,

Railway

Northern Pacific

Co., 36 Wall Street,

&

List—Booklet—Bache

Selected

Ba-che

of Canada Ltd.—Report—Carl
42 Wall Street, New York 5, N. Y.

Fund

Capital

Loeb, Rhoades & Co.,

of June 30,

as

York

New

portfolio informa¬
1955—Atomic Develop¬
ment Securities Co., Inc., 1033 Thirtieth Street, N. W., Wash¬
ington 7, D. C.
Atomic Fund

week,

Pacific Telephone & Tele¬
graph will put its $67,000,000 of
36-year debentures up for sale
unless there is a shift in plans.
Funds
from
this
undertaking
would be used to reduce
bank
loans.
Considering the size and
maturity of this business it could

23,

Stocks.

Atomic Reactor Diagram in four colors with
tion on

is

following

The

<

Gas

Natural

company

general corporate purposes.

Company—Analysis—G. A. Saxton
Inc., 70 Pine Street, New York 5, N. Y.
Also avail¬
a comparative tabulation cf Public Utility Common

Co.,

able

& Co.,

York 5, N. Y.

120 Broadway, New

Co., 115 Broadway,

6, N. Y.

Jersey

&

Atomic Energy Review—Now booklet—Harris, Upham

Co.—Analysis—J. R. Williston &

New York
New

The

proceeds to the

5, N. Y.

Kroger

will he pleased
parties the following literature:

understood that the firms mentioned

is

serial debentures
Manufacturing Co. on

20-year,

Thursday.

Broadway, New York 5,

Recommendations & Literature

of

for Rheem

Irving Trust

Kendall

are

000

continue

Co.—Memorandum—Kidder, Peabody &
Co., 17 Wall Street, New York 5, N. Y.

Gulf

GMAC's undertaking, will
so next week.
Bankers
slated to bring out $25,000,-

from

Inc.—Analysis—Singer, Bean & Mackie,

Inc., 40 Exchange Place, New
*

August 11,£955,, v

division

out for months and

with

the

months

that if the

mar-

years.

the cur¬ 'Sixth Street.
the 3V2%
however,
Clarke L. Cowan
there is a tendency to wait and
see what happens.
\
Clarke L. Cowan, Vice-Presi¬
dent and a director of Midland
Few Large offerings
Securities Corp. Limited, Toronto,.
been

rent

issue would

rate.

Jn
pace,

the

At

that

figured

had

frequently

span

result

against

17

in

carry

moment,

keepjng

the

mid_summer 'passed away suddenly on

the flow of new issues has

been light this

Aug. 1.

With Waldron & Co.

week and, aside

(Special to The Financial

*

Chronicle)

FRANCISCO, Calif. —
has joined the staff
Waldron
&
Company, Russ

SAN

We quote firm markets

on—

y

■■»,

Uomuta Securities

*

DEPENDABLE MARKETS

-

Jim
of

Louie

Building.

O. A. Sutton
N.A.S.D.

Member

Crowell

Publishing

Texas Eastern Production
and

382

other

active

Over-the-Counter

With Hornblower &
»

Material and Consultation

j
■

J. Benko is now

on

i

& Weeks,

issues.

Japanese Stocks and Bonds

Troster, Singer & Co.

I

without obligation
■

HA

2-

240(1

Members:

74

Nf Y. Security Dealers Association

Trinity Place, New York 6, N. Y.




\

NY

1-

376

61

(Special to The Financial

Broker and Dealer

Broadway, New York 6, N. Y.
Tel.:

Green 9-0186
Office Tokyo

BOwling
Head

•,

Weeks

Chronicle)

CLEVELAND, with
Ohio—Raymond
Hornblower
Union Commerce

Bldg.

With D. J. Risser
(Special to The Financial

Chronicle)

nrifDCrV TrGrirD f. Pfl
PEORIA, 111.—Earl Heinrich is
"tHir wLI" I LQlLlIi 06 UU.inow With D. J. Risser Co., First

Number 5454

Volume 182

The Commercial and Financial Chronicle

...

(569)

be

London Stock Exchange
Boom Checked

a

the recent check of the London Stock Market

uncontrollable deflationary spiral.

an

LONDON, Eng.—Whether or not
Mr. Butler, the British Chancellor
Exchequer, will succeed in

of the

Britain, he

checking inflation in

has
%

certainly

al-

succeeded

in
checking the
ready
boom

t h e

on

London

Stock

be

to

the

unde¬

clared aims of
the

series

nounced

case

a

be

Profits

time.

mere

question

would

continue

a

would be increased.

on

cally

that

boom

was

Stock

been

not

Exchange boom has

solely

due

of dividends,

creases

to the in¬
made by the

embarrassing

of boards of directors
after years of voluntary dividend

to the govern¬

restraint.

majority

has

The fundamental cause
the

been

growing flight into
material for
equities, due to the growing reali¬
"class war" propaganda. The gov¬
zation of the meaning of creeping
ernment was accused by Socialists
inflation. More and more inves¬
of having encouraged the boom by

ment, as it provided

refusal to take

its

measures

any

increases.
boom, which
was largely
caused by inflation,
tended, in turn, to accentuate in¬
dividend

restrain

to

the

Economically

flation.

tors

have

that the decline in the

of the

power

capital appreciation, which
into the government's

flung

by its opponents on

was

face
every possi¬

currency

wealthier

the

hold

art

has

on

prolonged if
the

a

no

of

means

proceeded

to

knowing

while to

the risk of

run

of

nounced setback

change,

really

a

on

pro¬

the

on

nouncement of Mr. Butler's

an¬

mediate
bank

ures.

But there

can

prefer

to

meas¬

new

be ilttle doubt

ply .with

go

his

request

to

We

ad¬

cut

what

much further in order to check

inflation and improve the

ing

payments.

minder

policy

in

we

balance

political feasibility.

The announcement

provided

of

only hope—though we do not really be¬
the learned gentleman is right about
know and can do about depressions, at

least within the limits of

Joins A. M.

figures of gold losses dur¬

July

can

lieve—that

he would be prepared to

vances,

of the

the

another
for

need

order

to

re¬

firm

a

prevent

With Daniel D. Weston

Krensky

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

CHICAGO,
is

the

now

&

jewelry, va¬ situation from getting out of hand.
rious collections, etc. as hedges,
It is reasonable to assume that,
for
the
majority of small and
after
months of hesitation, Mr.
medium-sized
investors
equities
are the obvious choice.
They in¬ Butler means business this time,
treasures,

exists on paper only. vest in equities even if the yield
In
spite of the prevalance of is
abnormally low, partly in the
speculation,
the overwhelming hope that the increase in profits
majority of equities has
been would lead to dividend increases,
held firmly by investors, most of
but mainly on the assumption that
whom would not think of taking the value of their
holdings would
their profits which, in the cir¬
keep pace with the rising trend
cumstances, are mere bookkeep¬ of
prices. • >

of the United Nations.

v

that, should the banks fail to com¬

of

may

raising the

would

await the results of his

purchasing

classes

but

not confined to national boun-

in which they originate, understanding and good will, mutual cooperation and in¬
ternational assistance can help to prevent unfavorable repercussions. Experience in western Europe
in recent years has indicated
possible lines of
progress."—Dag Hammarskjold, Secretary General

,

■

intentions of

rate

are

with

Arthur

141

Inc.,

Co.,

M.

Krensky

West

Jackson

Boulevard, members
changes.

BEVERLY HILLS, Cal.—Jeanne

111.—John J. Flynn

Mr.

o^the New

Flynn

was

T.

Decker, Harold L.
Epstein,
Feeney, George Murata
and Alfred T. Weeks have been

Norman

added

to

the

staff

Weston & Co.,

previ-

of

Daniel

Drive.

ously with Hornblower & Weeks.

announcement
an

offer

to

is under

buy

any

circumstances to be construed

no

as an

offer

sell

to

or as a

Even

it

so,

the

that

deny

would

be

Stock

idle to

NEW ISSUE

August*#, 1955

classes, and the increase of
whose prices does not affect the
cost of living index.
But those
familiar with the multiplier theory
are
aware
that, once additional
income is injected into the coning

omy,

Even

Reaction to Mr. Butler's Program

Exchange

increased the volume
of consumer spending.
Much of
this increase was directed towards
luxuries which do not form part
of the cost of living of the work¬
has

boom

it is spent again and again.
if it is spent originally on

it may be re-spent on
necessities, so that the indirect
effects
of luxury spending
are
liable to affect the prices of food
luxuries*,

Butler's

Mr.

his

various
made

ures

liable

are

industries,
fected

by

much

in

important is the

more

indication that this time Mr. But¬
ler

of

credit

enforce

to

means

strictions.
was

For

fi\i|2

re¬

months

he

awaiting patiently the results

the

increase of the

bank

nothing, or virtually nothing,
happened.
Now he
decided to
upon

line

active

more

the

banks,

Company's outstanding Common Stock are being offered the right to sub¬
scribe at $5,875 per share for the above shares at the rate of 1 new share for each 21/2
shares held of record August 5, 1955. Subscription Warrants will expire at 3:30 P.M.
Eastern Daylight Saving Time on August 22, 1955.

and
through

The several Underwriters have

subscribed shares and,
Common Stock

This

intervention

resentment

in

caused

ultra-o

t h

r

much
o

d

The Prospectus may

o x

ment

which firmly believed in

Anthony Eden is very anxious to
establish better industrial rela¬

expanding

found it inconvenient
should be this disturb¬
ing element, and welcomed un¬
doubtedly with relief the cessa¬
tion of the Stock Exchange boom.

is not

he

that there

good. But this alone
not check the inflation in

So far so

The additional demand
created by the rise in Stock Ex¬

Britain.
change

of

created

values was a mere fracthe
additional demand
by

wages
wages

by the increase
which made it

increases
increases

and
anu

orthodox

their

production.

answer

is

The

that, if 4%%

high enough, the bank rate
should be raised to 6%, to 8%, to

10%,

or

even

higher until it

duces

the desired effect. Beyond
doubt, if it is raised high enough
the

bank

boom.
it

would

But there is

would

tionary

rate

set

spiral

in

a

break

which

a

as

might

may

Merrill

Central

lawfully

offer

these

securities

such

in

State.

Lynch, Pierce, Fenner & Beane
Hornblower & Weeks

Estabrook & Co.

Republic Company
(Incorporated)

Kidder, Peabody & Co.

W. C. Langley 8C Co.

Paine, Webber, Jackson 8C Curtis

Lee

Higginson Corporation
Shields &

L. F. Rothschild 8C Co
Courts 8C Co.

G. H. Walker 8C Co.

defla¬

Company

Johnston, Lemon 8C Co.

get

The

out of control.

Won't Risk Major Slump

»rv»n.

brokers

be obtained in any State in which this announce¬
from only such of the undersigned or other dealers

the

danger that

motion

or

is circulated

pro¬

inajui oiump

of bank advances
Although some economists and
possible for em- financial editors would evidently




set forth in

intermediary of the Bank of
England, to reduce their advances.

psychological effects of the
7-—, - - * *
evidence of an increase in luxury the
all-curing effect of a high
spending are liable to affect the bank rate. These purists refuse to
that
amidst
attitude
of
the Trade Unions. realize
prevailing
Exaggerated accounts of the ex¬ conditions of full employment and
tent of that spending
made it inflation, the 4J/2% bank rate, and
easier for agitators to work up even a 6% bank rate, does not
excessive wages demands. As Sir deter firms from borrowing and

tions,

as

agreed, subject to certain conditions, to purchase any un¬
subscription period, may offer
the Prospectus.

both during and following the

the

The

tion

(£1 Par Value)
Holders of the

rate.

But

a

will

Common Stock

are

cuts

Industries, Inc.

capital investment programs. What
was

called

production of essentials

Maule

those
af¬
on instal¬

affected

be

to

adopt

from the

meas¬

specific

credits, and those that

liable

More¬

essential goods.

over,

affect

to

especially
restrictions

by

ment

638,532 Shares

meas¬

speculators and inves¬

tors hesitate. Some of these
ures

of

announcement

disinflationary

it is argued, an increased
demand for luxuries under con¬
ditions
of overfull employment
means a diversion of scarce labor

and other

solicitation of

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

ing profits.

Robinson-Humphrey Company, Inc.

D.

140 South Beverly

bly occasion,

This

v

with the country

meas¬

due to the fact that he

was

the possibility of even short periods
inflation exists, the maintenance of
equilibrium cannot be taken for

daries; rather, they tend to spill over to the world
economy by upsetting the international balance.
While the primary
responsibility for checking in¬
flationary or deflationary developments must rest

the Stock Ex¬

following

or

effects of which

a

,

absence

as

granted. Continued vigilance is necessary to check
both inflationary and
deflationary tendencies, the

-

The

long

international

economically,

■

major, slump.

stabilizers, there are no auto¬
expanding or depressing demand
keep it in continuing balance with supply.

"So

politically and socially, to make it
worth

built-in economic

of recession

And

enough.

far

measures

may

matic devices for

and reversed when it

too much is at stake,

is likely to

continue, and that in the circum¬
stances
they
have
to
employ
hedges against this depreciation.
While

Admittedly, most of the hundreads of millions of pounds of

to the conclusion

come

to

made it plain that he had no im¬

Flight Into Equities

A

The

is

be checked

ures,

of

July 25. Politi-

Einzig

that

expand, and, in the absence of
statutory
limitations,
dividends

an¬

measures

Paul

would

boom
of

of

level is likely

in

And

resumption of the Stock Exchange

Exchange.
one

deflated by some
millions of pounds,

continue.

to

He is not im¬

whether the sharp setback could

spiral can be
unless bank ad¬

the rise in the price

preferable

There

be

of

hundreds

have increased to the point where
hope to avoid extended periods of peace- I
time inflation or
depression. But the economic
world has no true
equivalent to the thermostat;
though greater reliance is placed in many countries
we

enforcement of credit restrictions.

£

wages

and

can

vances

That

was

the

checked,

ceived

less acute.recession caused by

ployers to concede these increases
and to outbid each other for labor.
Unless

infi¬

is

rules

to

pressed by the argument that a
sharp and brief setback, caused
by a prohibitive bank rate, would

spending and aided rise in commodity prices. Sees
of the boom the growing flight into equities. Says

would set in

preferable

fare of the nation.

substantial increase in Bank of England rediscount rate

any

orthodox

"Our
understanding of economic forces and our
ability to influence them through* properly con¬

departure

a

jeopardizing
the prosperity and economic wel¬

a cause

as

To him

game.

the

from

boom, Dr. Einzig ascribes it to the British Government's efforts
to abate inflation. Holds the Stock Exchange boom increased
consnmer

Yes, Of Course, We Can Hope!

pure monetary principles, a
responsible statesman, such as Mr.
Butler undoubtedly
ijS, cannot play

such

,

a

ing

nitely

on

such

risk

to

disaster, for the sake of uphold¬

By PAUL EINZIG

Commenting

willing

quite

9

The Commercial and

Financial Chronicle... Thursday, August 11, 1955

(570)

10

interest, creating dangers to our economy so

Continued from page 3

sit in

invited all interested persons to

The Commission has

Still Reaching
tendering a speculation to

men

the public. Many of our

leading industries initially

great and

evolved from just

such conditions.

underwriter who will handle a speculative
firm commitment is rare. Nearly all of such
are sold on a
hest efforts hasis. This means the
must drive the best bargain that it can.

issues

issuer

a

Sometimes
a

an

others in addition he may
nominal price, or for stock
offering price, or all of these may exist

accepted, and never reach

the offering stage.

the

and

and not a hit

proposition.

run

underwriter must pay a
sales force. This he does not only through sharing his
commissions but also his bonus stock and warrants. This
compensation to salesmen is made as the individual sales
are made, usually on a weekly basis.
Commission proposal that says in effect
you must escrow all the proceeds of sales, and unless at
least 85% of the issue is sold and paid for within six
months you must return to the subscribers all the money
Along comes a

paid in.

of

a

with
Milk

that

prevailed during the period, according to the Quarterly Fi¬
the Securities and Ex¬

west

nancial Report just made public jointly by

Profits, the report showed, were at the highest quarterly level

estimated at $3.3 billion,

this

quarter of

up

and constituted a major factor in the high

year

level of earnings.

the first quarter of this

Sales of manufacturing corporations in

estimated at $65.6 billion compared with $64.4 billion in

year are

the
of

previous quarter and $60.9 billion for the first three months
1954.
Profits before taxes increased to $6.5 billion compared
billion in the previous quarter. The provisions for Fed¬
billion during the period and are

with $5.3

income tax increased $1.0

eral

estimated

$3.2

be

to

an

underwriter can't receive his com¬

an

been sold, and
in the meantime pay his help and sales force, and
issue becomes sticky he, the underwriter, is out of

mission
must

that

means

on

sales until 85% of the issue has

pocket all this money which may

amount to many, many

thousands of dollars.

lom

three months of

billion for the first

1955.

principal financial statistics for all manufacturing corpo¬
summarized in the following table:
Manufacturing

expenses

1st Q

1st Q

2nd Q

3rd Q

4th Q

$60.9

$62.6

$60.6

$64.4

55.7

57.1

55.7

59.4

5.1

5.5

4.9

5.0

6.4

0.1

0.1

0.3

0.1

5.1

5.6

5.0

5.3

6.5

2.5

2.6

2.3

2.2

3.2

2,6

2.9

2.7

3.1

3.3

1.3

1.3

1.3

2.0

1.4

__

operating profit--

Net

income—net

Other

profit before Fed. taxes

Net

Provision for Fed. income taxes

Net

of

profit after taxes

Cash dividends

Retained

1.3

earnings

1.6

Goodbody & Co.

Edward

E.

Rosenberg

been added to

has also

the firm's

staff.

Livingston Oil Slock
Offered al $2.75
Van

Alstyne,

associates

Noel

Sh.

a

and

Co.

&

publicly of¬
fered 742,000 shares of Livingston
Oil

Co.

0.1

8

Aug.

stock

common

at

a

price

of $2.75 per share.
Net proceeds from the

will

financing
the company to
certain notes and mortgages

be

repay

of
1955

1954

Costs and

Exchange. Mr. Wog¬
formerly Manager of the
department of the local

used

by

indebtedness and for the payment

Corporations

(Dollar amounts in billions)

Sales

G.

associated

Stock
was

are

All

Albert

—

become

Clayton Securities Corp., 79
Street, members of the Mid¬

office

Earnings after taxes for the first three months of

9% over the preceding
quarter and 29% over the first quarter of 1954. Sales and profits
in the motor vehicle group were at a record high during the first
the year are

Woglom

Mass.

has

trading

change Commission and the Federal Trade Commission.

$65.6 (
59.3

company.

It

if

Woglom

for the

them for its business purposes.

difference between the

BOSTON,

the first quarter of 1954.

quarter of 1955 reflected the high level of business activity

it, it means that not a

The difference may spell
existence and non-existence

over

Profits after taxes of U. S. manufacturing corporations

The

mean?

an

G.

(Special to The Financial Chronicle)

first

rations

dollar of the proceeds
of the offering can be used by the issuer until 85% of the
-offering has been subscribed and fully paid for. As it
stands now such proceeds are immediately available as
-and when realized, and the issuer can promptly apply
the

Albert

of manufacturing corporations, says fig¬
advance of 9% over preceding quarter and

29%

,

What does this

indicate

ures

in four years.

remuneration the

Out of his

we see

Commission, in its estimate of first

Securities and Exchange

quarter 1955 profits

By and large underwriters are on the lookout for
best situations and seek a satisfied clientele, for success
in the securities business is a matter of mutual confidence,

As

us

Corporate Profits Highest in Four Years

shopping and get the best deal they can.
With the increasing tendency to give the public more
for its money many speculative deals are turned back for

-

Let

underwriter's compensation is fixed as

Issuers go

one

which suit its own pur¬

hope this will be the exception that will prove
the rule. The proposal is so assinine it should never have
been put forth in the first place and should now be en¬
tirely withdrawn by the Commission. It is akin to sug¬
gesting that a person's head be cut off to cure a toothache.

concurrently.

each

Woglom With
Clayton Securitie:;s

1955.

views, comments and conclusions

subscribe for warrants at a

than the

Albert G.

for the SEC to draw from such data,

It is customary

commission on gross sales; at

at less

before August 15,

on or

pose.

To get an

issue by

comments on this proposed regula¬

submit data, views and
tion

that it may

judgment.

1.3

1.1

1.9

4.4c

4.7c

5.1c

10.6%

11.4%

properties. The balance of the

proceeds will be used

as working
capital, to defray the cost of pos¬
sible acquisition of additional oil

and
gas leases,
expenses
of ex¬
ploratory drilling of non-produc¬
ing properties and the
cost of
drilling and development of pro¬
ducing properties and for other

corporate purposes.

Livingston Oil Co. is engaged in.
producing and selling oil and gas.
The
company's producing wells
located

are

oil

on

covering

a

leasehold

acres,

total

and

of

gas

leases

2,917

gross

of which it owns'
approximately 2,210 acres net, all
located in two fields in Oklahoma

It

means

ings, and makes every
It
these

efforts underwrit-

the virtual erasure of best

means

underwriting a firm commitment.

that incentive to those who set up

and sell

Annual

Small

affect the public?

business,

promotional companies will find it

impossible to raise money through the sale of
securities to the public. The $300,000 exemption

to

The

-deprived of the gains possibilities which flow
instances where the issuer corporations flourish.
Of course,

in those

profit

9.4%

10.4%

after

stockholders' equity

annual rate of return after taxes on

9.3%

stockholders' equity

small business which is supposed to be a
will be the chief sufferer.

Commission wants the following change

among

'

"No sales literature,

other than the prescribed offer¬

ing circular and limited advertisements specifically per¬
mitted by the rules, could be used in connection with the
offering of securities of promotional
With respect to

companies."

Regs "A" and "D" the SEC would set

lip a new form of control and make itself "Dictator
Advertising." What next?

why,, because of these limited few, the
SEC should attempt to mete out so fatal a blow to small
"business, promotional companies and to the public interest.
see

This so-called

tightening is equivalent to strangulation.

Once

again we find the SEC at its old game of still
reaching out for new powers, regardless of the public




field in Kansas. On these

located

as of June 1, 1955, 80
producing wells (of which 12 are
dual producers) and two natural
gas wells, temporarily capped in,
in which the company owns a full

partial interest.

or

The

company

presently sells its crude oil pro¬
duction at posted field prices to

sharpest improvement was noted in the rate of return for small
and medium sized firms reflecting the effect of accounting ad¬

various companies, and at May 15,

1955,

the

justments on fourth quarter profits.

$2.82

and

Industry Profits
Profits

before

income

taxes

showed

between
barrel. Most
of its production of gas is sold to
price
$2.90

Oklahoma

improvement

in

most

ranged

per

Natural

Petrolleum

Warren

and

Co.

Gas
Co.

major groups during the first quarter. Of the 23 industry groups
compiled, 18 were higher when compared with
the

preceding quarter while 20 indicated advances over

the first

quarter of last year.
As for profits after taxes,

20 of the 23 groups had higher
earnings than in the comparable quarter of a year ago. The ma¬
chinery and instruments groups were the only ones to indicate a
drop in earhfngs from the comparable quarter of last year and
these declines were small.
The primary metal, motor vehicle,

clay and glass groups were included
among major durable goods industries that showed sizable gains
for this period.
All non-durable goods groups recorded increases
in profits with textile, chemical, apparel, and leather companies
lumber, furniture, and stone,

making the largest increases.

of

Regardless of the laws, there always will be some
"fringe" people in the securities field who until,they are
apprehended will make bilking the public a profession.
These have and always will have our complete condemna¬
tion. Our unrelenting fight is against them as it is against
over-regulation.
We can't

one

were

for which data are

favored child of Congress

others:

of

4.7c

with 10.6% for the previous quarter
and 9.4%
for the first quarter of last year.
While the rate of
return continued highest for the largest sized corporations, the

provided by Congress will become a mockery. Under¬
writers will shun "Regs" A and D, and the public will be

The

rate

taxes on

and

4.3c

increased to 11.4%, compared

How will all this

their

dollar of

sales

will be diminished or completely

underwritings

removed.

next

Profits after taxes per

Private Placement by
Household Finance
Household

placed

of March,

assets amounting to
the. end

1955, manufacturing corporations had

$176.4 billion compared with $175.1 billion at
Even though most corporations were

of December, 1954.

required to make large Federal tax payments in the first quarter
on
last year's income tax liability, the level of cash and U. S.
Government securities declined by'only $700 million during the

Inventories were little changed while total current assets
were up by about $1 billion, due in most part to an increase of
$1.4 billion in accounts receivable.
%
On' the liability side, the increase in income tax accruals
resulting from higher earnings during the quarter partially offset
the large payments as the Federal ihcome tax liability account
dropped to $9.4 billion, down $1.3 billion for the quarter.
The net working capital position of manufacturing corpora-,
tions increased by $1.7 billion in the: first three months of 1955 and
at the end of March was reported to be $59.8 billion, a record high.

number

a

leading institutional purchasers
$30,000,000 of 3%% serial deben¬
tures, $6,000,000 of which

due/

are

Aug. 1, 1961; $6,000,000 on Aug. 1,

and

1965,

$18,000,000

on

Aug.

1,

1974.
Lee

in

Higginson Corp.

Blair

liam

the end

has

Corp.

with

of

Manufacturing Assets
At

Finance

privately

&

Co.

acted

and
as

Wil¬

agents

negotiating the placement.
proceeds will be used by

The

Household

Finance largely to

re¬

tire short term borrowings and to

provide

additional

working

cap¬

ital.

period.

-

With Samuel Franklin
(Special to The Financial Chronicle)

LOS ANGELES,

Calif.— Albert

P.

Fagerberg has been added to
the staff, of Samuel B. Franklin &
Company,

West

215

Mr.

Fagerberg

with

Coombs

&

was

Co.

Seventh St.
previously

Number 5454

Volume 182

(571)

Chronicle

The Commercial and Financial

...

11

i

Pros and Cons oi Womenin Business
Manager, Loss Prevention Department,
Liberty Mutual Insurance Company, Boston, Mass.
and

Vice-President
v

logic

situation.

makes

A

personality adjustment

largely
the

of

large

insurance

various

discusses

company

pendent

and the professions. Stresses
changes in women's position in society during the last half
century, but points out old prejudices still survive. .Urges
women
to compete as men compete on strong points that
phases of women in business

make

traits,

'

than

qualities that

many

dexterity, but we

decisions

rational

make

to

is

judgments. He
can subordinate, for the most part,
his own selfish interests
to the

are

independent

interests

larger

of

a

women

lamily and friends and his deal-

true

w*th his business associates
Pave some sense of intelligent di-

many

ship

that

there are certain

"naturals"

for

women

sidering

to

the

as

sexes.

on

the ;other hand, has all the personality traits we generally find
men. We know
erly
stated,
have', been
over- 'objectionable. He can't make up
that women whelmed by the exaggerations of 'his mind. He is haunted by selfget much their weaknesses.
'
\UU';
it doubt: He is hostile to some asgreater

ex-

than

for

tent

more

t h

p a

s

y m

put

So it

-

the

same

can

standing,

they

token,
get

ment.

more

wrong,

that

women

is

the

stronger

those

in

men

feel,
right
intuitiveness
than

jobs

quality is important.
it,

.get

-ences

Yet

we

other important

or

You

or

that

where

Desnite

the

what

and

are

competing

of

man

of

to

whether

or

you

It is

WOman.

ir-

are

a

to you

up

decision-makers

the

influence

jobs,

for

this

by

for-

points to be selected rather than

influ-

your

by

find,
l'au, 11UU'

and

good

your

35

after
aiLC1

can

1

things

abilities

s°ciates and overindulgent to
others. His decisions, when finalarrived at, are apt to based on
impulse. He feels that he is
threatened on all sides, for no
discernible reason. Because he is
basically insecure, he communicates his insecurity to others, and
both his personal and business relatinships suffer — sometimes dis-

years

liomen^oftcn^h^
often
have
due
aue

ihtak

several
several

to
10

facts
lacis

womenPas temponraSw

o£

I' you take either of the above

j

?

decisive and lacking in judgment,

nreiupreju-

and
ana

to

.

nlontv

of

m„rl

die-head men. I have also know
"umber with . swelled, heads,
both from personal" vanity and
from an inflated opinion of their

em-

industries the maximum expectalion

regarding

is five
fee

80

when

while, a man's

years,

believe

I

40. '

or

woman's service

a

we come

"to make'

may ?

also

that

of

them

a

or

that

woman,

we

.

r

•

-The trouble is that since women

a®u^be<Mo^ wo^^n.^s. tijem^s 'hpt
to be
•
•«-u

bursts. When it comes to showing . r ^
emotion, I'm afraid that women r ^
job should it -ex- -;may have an edge over the men,
feeling is
right " who do not often burst into tears. ^

values
les, one, the value of doingiob.: the
the other^
other, the
the
the immediate job,:
And

cand

the

womln'cannot

that
adapt themselves as well as
to
a-job that may have

«r.

wrong,

o

men
some

-changes in its responsibilities and'
environment.
::
;
'

,

But if popular, psychology: has '
anything to it,, maybe some of us ;
men would be better off for a
S00^ cry*

all

to

the

that

fact

thinking

to

seems

me

in

group

your

rather

women,

as

lead

to

than

•

;

reading

7 On

,

This

people you

that you'll find
^t^sT^n
***

.

potential of the

the

to

applied to the

».

...

a-<* whole
7*
— something
as
—
b
defective in feminine
^

group
rec-

is

that

get

ahead.

but

than

they
This is

no

more

men.

How

and

Passlve

dependent

people

How

are

many

woman's place

as

dogma

working

placed in a routine job
particular; future
or

woman,

with

from .her. Her expectations were
security, protection, and, if she
was lucky> a certain amount of
veneration. Expected from her

Of the

ambitious

An

woman.

no

chance

or

urally

become
If

bored.

nat-

and

place

we

in

woman

will

disinterested

advancement

the

she

anc.?.Aas ..w^ f. and mother, and a
facility in all the domestic crafts
as

is

p

given responsibility and must be
depended

to take

on

responsibility,

she

business

and

cooking, sewing, and the
a certain vague respon-

f^bility as the secondary head of
tbe household.

of her
succeed.

care

will

conventionalized perform-

was a

same

where

work

in it, and what

aad what it would expect

is, I believe, the fault

of management than

more

was

sbe could expect from this soci-

charge is often taken

cli-

The whole structure and focu»

leadership,
to de-

of society have changed in .the
past fifty years, but popular opin-

leaders from the very
large
reserve
pool of womanpower that is now almost entirely
unrecognized.

ions about women's status have
not kept pace.
Some of these
opinions have been formalized
into myths. It is surprising how

a

some

way

be found

considering the

of

women

differences
and

terns

and

must

for

new

After

the

cries

that

industrial

n

in

ness,

stron6 a belief in this mythology
still persists, not only with men,,

and

and
pat-

both

real

aptitudes,

society

that

disregared.

be

individual

of

those

ences,

regardless
is

individual

The
are

a

only
useful

differ-

of whether
man

or

lip

the

woman.

buy any of these securities.
.

*

736,856 Shares

of the ::
in busi- '

American Natural Gas

individuals,:yo'u "afe followingffor;t,which they are praised.- - I y;
There is nothing Ufind several cliches about women
in the Constitution of the-United^that5 strike me as being largely

as

Company

the wrong track.

not .suntrue.
Bad personality traits,
country,< and lack of ability to" get along
though I doubt if it will happen "with
people, seem to be the
right away.
But, on the:; other: most', usual complaints.
On the
hand, I do not doubt that it may; other, hand, women are frequently
happen*someday.
>commended for their ability to
What I wonder about is why adjust themselves to a wide range
you
women * continue
to
be so of situations, and by some intuiaggressive. It looks to me you've tive sense, to make the best of
States that says a woman may
fee r President-

already
are

of

scored

trying to

the end

the

touchdown

a

and

stands.

zone

You

women

already

longer

own

more

You are pampered

There

are

than

men,

five

hun-

more women voters

S.

U.

so

you

A.

can

anytime

take

over

you

keep punching; why
relax.
It's inevitable

that you are
•

-There
pany

is

by-laws

wpman

in

that

our

says

com-

that

a

.^annot be president of

Liberty Mutual, yet I doubt if it
will

happen

for

a

long time.

I

.address
Business

and

by

Mr.^ Seymour

Professional

Meeting, Chatham, Mass.




Women

to
s

the
Club

Holders

$48.50 Per Share

same

in

/

Copies of the Prospectus may be obtained in any State in which this announcement
is circulated from only such of the Underwriters, including the undersigned, as may
legally offer these securities m compliance with the securities laws of such State.

expressing
.

.

.

.

belief, that

.

intuitive,

more

are

this

belief

...

.

I

but

am

White, Weld & Co..

maIk'".g ,an '"""My judgment,
I think in considering the basic
generally
0f

'tSere^^y/peSplI
the question

motivation.

Women

are

.

.

,

..

„

_

c

anxie^ies* and frustrations as men.

believe that both men and women
.

.

will make roughly

.

..

similair per-

Drexel & Co.
.

Alex. Brown & Sons

Ladenburg, Thalmann & Co.

gov-

erned by the same drives, fears,
...

Allen & Company

overlook

Granted the same background, I

-

_

Subscription Price to Warrant

Bad

the

ra"°n.alhb.e"ef"

This is my

.

going to get there.

nothing

and

ln my own ®>ers

want.

you

And still you

don't

traits,

sights into situations.

men.

held, have been issued by the Company to

kind

women

than

the

by

million

a

dred thousand

men.

subscribe for these shares, at the rate of one
holders of its out'
standing Common Stock. The Warrants expire at 3:30 P.M., Eastern Dayjight Saving
Time, on August 23, 1955. During and after the subscription period, shares of Common
Stock' may be offered by the Underwriters, as more fully set forth in the Prospectus.
share for each five shares

of personally traits, are
shade by both men and women.
of the And women by no means have an
exclusive right to intuitive in-

live

nation's wealth than

(Par Value $25 Per Share)

Transferable Warrants evidencing rights to

general-

probably wrong.

are

personality

,

You

i think that both these

izations

Consider this:

men.

'

them.

the ball into

carry

Common Stock

Jy

...

:

}■

August 10,1955.

Salomon Bros. & Hutzler

en-

franchised female, and nominally
recognizes her equal ability an<*
value, the basic concept* o£
woman's nature remains Victorian.
> We are struck with an irrationai
viewpoint - that is at least fifty
Continued on page 17

they should gen-

which

considerations

pays

idea of the enlightened and

imagined, I have come to the

erally

Although
service to the

many WOmen.

behavior

conclusion

are

pros

u„ci„OM

f' NEW ISSUE

I observe that women are
often damned for the same things

an

actually
have that

This announcement is neither an offer to sell nor a solicitation of an offer to
The offering is made only by the Prospectus.

ness,

on

equally authoritative government.

=====

,

about

cleardy defined. It was passive
and completely dependent on the
ma^e as the head of a close-knit
fai™.ly grouP> which was in turn-

charge against

true,

women

That this

some

literature about women

by

rational

ceptions and misconceptions

leader?

a

.

over

to

of

generally

business

many

trv

.

„

man

a

and

by

This is oversimplification. • But
it is possible to re construct any
rare combination of energy, drive;
social period before 1850, and be
personality and ability that makes able to know almost exactly what
How

ot Pers9namy ana "Y

fit

scarcely-a ieminine - prerogative,; ; ^
>
consciously
sciously or unconsciously think
think': neither
neiult:r are jealousy
jeaiuusy .unfairness,
. uiuaMiiess, grop
"
,as
of
the iposition Vas having
two moodiness > and\ emotional
out- basically
■of

nersonalitv

own merits.^ Lack of .sympathy>■ are a minority group in business,
f°r subordinates,/,another . trait a mistake in judgment by one of

selection

a

J 1
™.p

kno,wt£ 1:

^piSlvd'

-

that most of us are familiar

girls who wouldn t grow up.

haven"

„

have

emotional and not
standards. There is
complete folklore of precom-

governed

own

people want to get ahead?

velop

'hat i
seen m men.
.nnnnseH in he in
Women are supposed to be jn-

in

I think this

recognition.

securing

is
js

difficulty

in

of

worth discussing although I am
sure

like it or not, we will

to accept the fact that opportunities for women in business are

this

business—

victims

is

common

superficially

mate

of

the

want

The infantile personality is in
such a minority that it is not

watching
from the sidelines,
traits, no tendencies in women with those Peck's bad boys and

in administra-

women

don't

asterously.

no

.regarding

Another

In

fiat.

any

I

favorahle

that you are

me

edict, some statejobs belong to
"men stay out"

some

to

respective of

stronger.

are

as

WOmen

interviews
We

men.

to

seems

thinning incorrectly, if you think
jn terms of getting some under-

buyers, and by

Seymour

strong

points, although many times prop-

from

y

Their

pedestals.

on

in

we

He is

do to his

may

than

ambitious?

the softer -ofyV
They haver been U The
perpetual adolescent,

women

two

with his

relationships

personal

desirable.

more

was

Why
is this?
I believe that
fundamentally it stems from con-'

jobs that

are

a

than

prejudice

tive. As such, he is a. valuable
member of society. Both his own

know

Wm.

often

more

and manual present type-of activity and its
sometimes for- philosophies so that it would be
g e t this.
We crystal clear that women's leader-

requir-

insider

women's place, function, responsibility and future—not only in
business and industry but in society generally. This folklore is
of recent origin. Until the industrial revolution about one hundred years ago, women's role was

has a sense of values, and is able
to see things with some perspec-

jobs

titude of the employer and of top
management. However,
whether

hostilities, is the real basis of all
prejudices against minorities. Although it is rather trivial in this
particular situation, women are

think in that case our business
would have to change from its

much

she

be

a

He

group.

the

should

established order. This fear, which
shows itself in various defensive

ognized.

at

men

routine

care,

strengths,

many

We know that women are

Letter

able
and

needed and valued in industry.

*

The mature individual

fantile.

Man

newcomer—in

woman

and what

some of us remain per¬
adolescent or even in¬

way,

petually

the

case

Some of us grow

on sex.

the

of

standards

the job itself, regardless

is

submitting

the outsider.

woman

a'fraid

part way, some of us most of

the

contribution to business, and concludes that women

a

have many

ang

up

men

set by
of sex.
Ideally this should be the at-

The

man

it

error.

so-called feminine character-

a

resents

not de¬

is

a

individual

an

have

we

If

mistake,

same

as

istic—jealousy.

matter of maturity. And
of maturity that an

a

the

Here
to

degree

individual has reached

Executive

the

or

personality.

or

thought of

adjustment oi an individual to the
conflicts of his environment, is

SEYMOUR*

By W. H.

sonality adjustments to any given

R. S. Dickson & Company
Incorporated

R. W.

Pressprich & Co.

Dean Witter & Co.

The Commercial and Financial Chronicle

(572)

12

bids,

Good Business Foreseen by
Home

Furnishings Leaders

in International Home Furnishings
Chicago's Merchandise Mart anticipate

Participants

healthy to excellent conditions, with

Excerpts follow from
nf

riot
Ties

conferences

rirpss

se-

a

added

The appliance

industry expects
air-conditioning business to

ditr

of press conferences dur-

tQ

successfully

compete

the

for

the recent International increasing numbers of consumer
Home Furnishings Market in dollars available. It is a challenge
ing

Mprrhnndivp
wertnanaise

ihp
ine

Mnrt
man,

Chi.
cm

III.

cago,

EDWARD

By

In

to prices, costs in
this time are increasing. Labor costs continue to increase
as
wages go up, and our
material costs are increasing, be¬

R. TAYLOR

regard

general
Vice-President for Marketing,
Motorola Inc.

Radio-TV

Business

to

Television

highs.

vancing to

new

set

new

industry

ad¬

with atten¬

era,

general economy is strong
and heaithy, and the radio-televibusiness

sion

either

going to reach
heights or set new

record

highs this
black

year.

is

There

white

>

be

the

sales will

"of

area

for

sets

that

television

ji

in

million

indication

every

and
»

will

is

sales

~

j

7

to

1V>

making

the

wo_

tor in the over-all television

the

all-important

re-

influence

Styling and obsoles-

past.
will

mar-

but it will not

picture
the

main

important

play
role,

the dealers

an

increasingly
thereby
giving
opportunity to step
to high-end models where the

cence

an

profit is greater.
Speaking for television, there
are
about 2,300,000 sets in combined
factory,
distributors
and
dealer stocks, and while that is
on the high side a
little, it is not
out of proportion to the expected
volume for the

More

and

year.

manufacturers

more

going into the set production
television; more com-

color

of

panics

television

be

quite

color

coming out with color

are

sets.
a

There

is

going to
pickup in

substantial

features

through

color.

and

stiffening

Attrition

competition

short-

excellent,

and

long-term out¬
without

increases.

price

1955

drastic

expected

case

factories

goods

rnaximum

capacity.

term outlook

1955

year

are

or near

The

short-

is excellent and

should

set

the

volume

a

record.

trend toward electrical living
places manufacturers, distributors,
and dealers in a good position to

with the expanding national
economy, if they are willing to
fiaht for their position in the comgrow

P^titive market.

1950

This

when

86,000.

to

rose

there

The

high

a

were

more

number

Studies show that

high percentage of failures

distress
than

merchandizers,

sound

has

estimated

an

reputable

were

their

homes

More

people

own

and

are

spending

rather

Acceptance of Built-in Equipment
most

significant development

appliances

this time is

at

electric

ranges,

the

largely to

the trend is

now

expanding to refrigerators, dishwashers, and laundry equipment.
Built-in
equipment lends itself

out high cost. It is ideally adapted
new

space

houses

is at

a

the homes in which they
With the tendency towards

now own

people

shorter

will

work

have

week

these

leisure

more

time to spend in and around their

h<™es'
.

This increased emphasis on the
home results in a realistic
prospect
of

increasing

because

has

more

spend.

ing
omy

the

furniture

money

business,

homemaker

average

than

ever

to

Healthy incomes, increas-

population

and

sound

certainly do not

econ-

assure




sue-

where

kitchen

premium.

We believe that built-in equipment

will

become

conventional

a

a

ncfcfr0cfaiif\ri

unlnmp

r\i

of volume

chain operation, as, for exam¬

Stores, Woolworth, J. C. Pen¬
Where there is mass dis¬

tribution there must be
duction of goods
and

increased

There

also

the

for

volume

is

fierce

consumer's

constant

mass

pro¬

with lower prices
a

result.

competition

dollar.

emphasis

Another

as

on

There

obsoles-

characteristic

of

how

does

the

measure'

ness

modern

only

ards?

As for

units

and

Business

of

ment

of

were

stand-

of

the

Commerce

Depart-

showed

that

29,000 retail furniture
S.

Of those,

93%

owned,

as

individually

against
stores.

10%

The

for

department

largest

department

chain—Sears Roebuck—did
billion of volume.
The
largest furniture chain — Barker
$3

over

Brothers—did $30 million—1% as
much as Sears Roebuck.
Except

each

factor

a

domi-

more

However,

year.

appliances

as

years

ticularly in rental units and

low

budget income brackets.
Built-in

range

sales

stallation
new

home

is

involved

building

ac-

should

are

either

com-

pete for big housing development

Material

be

on

In

appliances

the

has

a

will

be

20

old

years

begin

setting up their
homes.
In the meantime, the age
of marriage has fallen, home con¬
struction is booming, and family
income is steadily rising.
These
are the three important factors in
the

health

of

ings market.
for

the

We

boom

2%

have

volume

would

engender

tional

of
be

reach

1960.

lower

and

would

to

that

less

than

market.

We

million

$500

Such

chain

a

production

mass

develop

costs,

of

program

annual

a

na¬

obsolescence,

start

broad

which

develop
to
help
the challenge
of the dis¬
houses, < intensify
their

research

products

name

meet

count

efforts

to

lower

the

of

cost

dis¬

tribution of

furniture, and develop
and unique ideas toward de¬

new

do this, we will write a
chapter in the history of re¬

If

we

distribution.

tail

Above all, we
important contribu¬
raising the level of the
standard of living and of taste of
will make
tion

an

to

American

people, and
immeasurably to their

add

thus
"well

By ROBERT E. COOPER
Merchandise

Manager of Home

white

to

color,

goods

have

there

to

be

certainly

trend the last

but

not

yparor
in¬

only

exteriors.

The

pre¬

dominant showing and trend is the
built-in type
appliance, not only

surface cooking units, but
refrigerators,
freezers,
and
so
forth, washing machines and com¬
binations, etc. So far as the mar¬

ovens,

ket

is

type

concerned

of

sically,

the

those,
lends

in

the

market

where

or

this
itself

market, ba¬

builders'

homes,

new

is

on

merchandise

somewhat limited

a

of

customer

a

of

process

completely
remodeling the kitchen. Business
is good in

appliances, but there is

consideration

some

margins

that

perhaps
for everybody.
are

profit
little thin

a

Somewhere in the neighborhood
of market orders are

of 10 to 15%
for

merchandise.

new

Retailers

price

have

increases

absorbed

already,

likelihood of them
is

pretty

tion.

much

some

and

absorbing

out

of

the

more

the

ques¬

There probably will be some

changes in specifications

so

as

to

lines.

Los

Angeles Exchange
Appoints Public
Relations

Ward

and

Company

Young, general partner of Lester,
Ryons & Co., has been appointed
geles

Chairman

Stock

lations

Home

furnishings market

unpre-

cedentedly healthy, with Fall out¬
look good.
This

market

healthiest

is

Governing

long while.

a

the health

in

of

one

it

The

has

the

been

Mr.

a

serving

Also

upholstered

is

people, for

ex¬

as

.

past

governor

Exchange and

governor

a

re¬

Exchange

(

a

of

Stock

of

the

Exchange

"

*

named

public
J.

Los An¬

Chairman Em¬

Board

Association
Firms.

good shape.
The

is

of

industry, is in

an

by

Morgan,

Young

key

backlog

is certainly
of

B.

erson

of the

Exchange public

committee

of the Los Angeles

conditions

orders, which

Group

ANGEf.ES, Calif.—Lloyd C.

1955-56

Furnishings,

Montgomery

to

for

nretty much maintain retail price

new

in

going

toward

teriors

needed,

are

brand

programs

been

two

to
chain

a

general

by

the

now.

million

This

the

aim

must

market,

its immediate ob¬

as

$100

of

is

launch

must

to be ready

we are

time for action

would

home furnish¬

any

If

1960

In

Change

because

babies

of

emphasis

,

Goods

is

will

market

texture and multi

on

color effects.

White

the
basic

the

to

relations

Exchange's

committee

were

Earle

Jardine, Jr., partner, W.
R. Staats & Co.; P. J. Shropshire,

Mitchum
Lewis

resented

weeks'

partner, Dempsey-Tegeler & Co.;
and Phelps Witter, partner, Dean

the

largest single
operation in all retailing,

unit

As for

Commerce

figures

for

1953 indicate that in the manufaci

of

household'

furniture

and

$21/2 billion of volume.

Of these,
1,862 manufacturing units, representing 50% of the total number,
of units, did only 5% of the total

business and averaged about $70,000 worth of business a year. The
manufacturing of furniture is

bit as much in the horse
and buegv days as is the distribution of furniture,
every

As

for

sumer's

the

of

the

ness

In

with

Great

Britain.

here got 3 cents of the

we,

came

in

They have
perhaps 90/day back orders, which
is very good for them.
The

floor

outlook

con-

in America,

1954, the retail furniture
business in America totaled over

Tem-

c:

Whitney,

Jr.,

Co.

in

Herman Keller

the

furniture,
covering business, home fur¬

on

Trip Abroad

BOSTON, Mass.—Herman Kel¬
fall. We anticipate good business ler, Keller Brothers Securities Co.,
has left on the liner United States
and so does the industry.
for a five-week business trip to
As far as pricing of upholstered
England, France, Italy and Switz¬
furniture, the new styles offered
erland.
by manufacturers are up probably
nishings

in

2%.

about

continued
are

general,

is

good

for

Old styles which they
from

about the

the

same.

last

market

of $7 or $8 a

increases will be reflected in cost
reorders

To Form NYSE Firm:

But it would

that with the increase in
ton, that those

appear

steel

for

In

Witter &

Jones

J.

position.

con-

the figures are
interesting by corn-

this respect,

In

goods people

dollar,

particularly
parison

share

case

excellent

an

production, Depart-

mass

of

market with

back orders, which is good

The

jnpnt

to the

came

and healthy for them.

remodeling,

unable to

to

Their

be

The

price

pleton;

tolaTrange
in

to

seems

patterns.

partner,

1948/ the home furnishings businow

prior

3%.

some

is

somewhere between three and four

have reached the place where
recognize that—Great Britain was 45 years ago.

or

Most manufacturers
while retailers

increases

changed

war

a

covering

announced

furnishings market in the history
of the country. By 1960, the 1940
and

is

ample,

sumer's dollar. In Great Britain,
sales for the industry.
Builders this industry got 3 cents of the
are doing the bulk of the built-in
consumer's dollar in
1910; 5
aopliances business because in- cents in 1939; and 6 cents in 1954.
count lor about n% of

and

buggy days.
we

pretty

eating places and filling stations, the furniture business rep-

for

we

have known them for many years
have an established future, .par-

color

industry

LOS

large aggregation of
volume, the
1948

Census

there

these

form

floor

material

busi-

furniture

to

up

to

bedding, there were 3,708 manufacturing units, doing a total of

nant

even

in

brt/P

large aggregation

a

ture

At first confined

60%

live.

a

the

is

business

industry. Prices are
basic changes there

the threshold of the greatest home

volume.

?1C °f modGrn retail distribution

ic
is

five

,.

..

.

ment

that

families

,.

rapid acceptance of built-in equip-

time in them. It is estimated

American

,

Mass Production

more

of

,

merchants

of

before.

,

is

the horse and

jective

The most important characteris..

store

conscious

than

for

1960 boom market.

In 1940 there were approximately
51,000 appliance dealers in the

to

homes

horse-and-

ernized. Should prepare now

were

people today
their

in

It

of

the times—it is indeed

step with

buggy stage, and must be mod¬

Appliance dealer ranks are being thinned by attrition brought
about by stiffening competition,

American

more

still

stores in the U.

well to custom installation with-

ever

furniture

distribution

distribution.

in

are

-

The long-term ^outlook for our
industry is also a bright one. The
are

appreciably

any

standards

being and their happiness.

A

running at maximum

in

up

to the

final one is constant effort
lower costs of distribution.

in
Most

business does not

the

to be banner year.

now

measure

surface

The

carpet

The furniture

further characteristic is great
emphasis on brand names, and a

The appliance business is being
revolutionized and broadened by
the addition of built-in appliances
and color. The overwhelming

a

look

Horse-and-Buggy

dustry is very healthy,

67,000 in 1954.

Martinsville

in

business
dinette

stable

a

stable.

Stage

In

Hard

quite

Distribution

the

The

Hard Surface Covering Stable

the

to

industry.

in

of

very competitive market.

furniture

sign.

steadily decrease to

President,

billion

retail

On the basis of a 30% increase modern distribution is intensive
in factory shipments, a 23% in- research in finding out what the
crease in distributor sales, and a customer wants, improvement of
H% increase in retail sales for product) improvement of design,
the fmst five months of 1955 com- development of new products, efPfred wl0? the same ,1954 period ficient store layouts, and attracthe outlook for the appliance in- tive store display and appearance,

than

By R. M. SIMMONS

Both

of

and

.

in

of

Manufacturing

is

foreseen.

United States

programming this fall.

American

President, Banner-Whirehill Corp.

'cence.

V/U11U1I1

luting

By HARRY W. SCHACTER

lied

last year's model.

Certainly, price cannot be disregarded as a most important fac-

there

1954,

ple, Sears Roebuck, A. & P., Al¬

McDANIEL

Appliance business being revolu¬
tionized, with addition of builtin

In

sold.

were

appliance

9>500>000

were 11,200,000; in 1955, estimated
sales will be nearly 12,000,000 and
in 1964 we expect sales to increase
80% over 1954.

ney.

discontent

consumer

about

units

are

in¬

This force
will tap new markets by creating
an
atmosphere of obsolescence,

are

Although costs

By JOHN F.

styling.

to

year,

1964, as compared with 1,230,000
1954.
1
Evidence of strong industry

in-

many

1955,

the television

1956,

ing given

up

in

moderately

the

end

static.

have

of retailing which has not kept in

ad¬

this time.

dustry is advancing to a new era,
with unprecedented attention be¬

of

been

Vice-President, Hotpoint Co.
for

with

product and

continually inching up and prices must
go with them in an orderly way
over
the long pull, we will not
see any drastic price increase
at
feit.

last

$2

or

of

could

we

—

far

as

thG years. Air conditioner unit
sales should total 2,500,000 by

are some-

have

40%,

did

way

stances, just enough to cover certain additional costs already being

mark.
As

Prices

1939

as

volume

1954, due to

production

reflect their higher la¬

costs.

and radio
past the 12 million

soar

materials

finished

else's

body

of course

justed

The

at

cause our raw

bor

dn styling.

tion

Stability Expected

back

Britain

there will be steady increase over

]952>
Relative Price

of

growth is seen in these figures: in

which will be met.

Great

fu¬

industry sales in
to be 5% to

under those

excessive

but they do offer a challenge
to the home furnishings industry

the

which

expected

are

10%

in

substantially

Although

1955

cess,

could have gotten

we

imately 80% of all builders.

ture.

Television.

$5 billion. If

5 cents of the consumer's dollar—

develop

highs in

new

ex¬

an

the small
bqilaers building up to four houses
a year.
This accounts for approx¬

the

Market in

retailers have

many

cellent potential among

Thursday, August 11, 1955

...

during the fall

sea¬

Cortese, Kupsenal Co.
Cortese, Kupsenel & Co.,
bers of

12 with

son.

New

The price increase in case goods

industry
3

around

averages

somewhere

to

4%, which indicates
perhaps that case goods will have
about

5%

increase

during the
affected more by
the minimum wage law in
the
event it is enacted, somewhere in
the neighborhood of 90 cents or $1.
fall,

a

shape.

backlog

There

of orders.

is

is
a

The

in

very

normal

juvenile

New

York

mem¬

Stock

offices at 40 Wall

York

Anthony

Ex¬

City.

J.

Street,

Partners will be

Cortese and Samuel
will acquire a
the New York

Kupsenel,
who
membership in

Stock Exchange.

probably

Occasional furniture

good

the

change, will be formed as of Aug.

,

J. F. Nick Partner

J. F. Nick & Co., 50
New
New

Aug. 11 will
to

Broadway,

City, members of the
York
Stock Exchange, on

York

admit John W. Nick

partnership.

Volume 182

Number 5454... The Commercial and Financial
Chronicle

13

(573)

"It

Thoughts

Statism in Monetary
Affairs: U. S. and England
on

By JOSEPH M. HORNOR

Mi. Hornor urges that

Maintains remedy, premised

on

State's

return to honor via

in

all

this

Necessity

land

our

walks

matter

it

life

of

of

behooves
to

consider

statism.
th

those

As

used

oughout

r

this paper, the

statism

word

is

intended

partici-

mean

p a

to

t i

by

o n

a

State in the

management
of

of

men,

of

the

business,

or

this word may
total

mean

in

of

large scale.

isolated

to

as

unable

be

to

com¬

mand

such an understanding as
would induce full cooperation from
the privately managed banks.
All

claims

tem's

of

the

Reserve Sys¬

independence

from

United States Treasury

the

fall before

the

following fact:
When, in
1933,

Federal

our

Government repudiated its prom¬
ises to pay in gold, the Federal

Western

Advisory

Europe and in

Federal

a

Council

Reserve

of

the

Board

then

protested

North
and against this action. See "Why We
America, usually has been Need An Honest and Sound Cur¬
privately managed. Obviously, a rency," by Walter E. Spahr, The
State's
granting of a monopoly Commercial and Financial Chron¬
to a business would be
partici¬ icle, Feb. 17/ 1955. After 21 years

South

pation.

.

State

of

-

complete

indifference

protest by the Reserve Board and

rule, of whatever kind, the

its successor, the Board of Gover¬

the

earliest

the Chairman

good

or bad effects of the
poli¬
governing the use of media
of exchange have reached all of
the
people; but, until recently,
only a small part of the popu¬

nors,

cies

advocated

lation has been reminded daily of

ity of the practice.

the

before

dishonesty solely
of

the

of

continuance

a

expediency,

latter

of

this

the grounds
completely

on

and

the

of

the

Board's position is unchanged.
The Council, we should remem¬

ber, is composed of "twelve mem¬
bers, one from each Federal Re¬
such
selected annually
interest
was
shown
until serve District,
the
Federal
Reserve
Bank
comparatively recently.
Helpful by
in
weighing this subject is the through its board of directors.
Council members are usually se¬
following quotation:
interest people in circles far
than

numerous

"It
that

is,

those

more

wherein

lected

of

course,

well

known

of these

from

bankers

among

in

representative

district."

each

—

The

[VA guaran¬
Federal Reserve System, Purposes
mortgages outstanding at the
and Functions.
Prepared by the
of
1954
and
amounting to
staff of the Board of Governors of
nearly $3.4 billion] are now being
the
Federal
Reserve
System,
written with no down payment
Washington, D. C., 1954.
at all.
No obligor is independent of his
".
Something like 40% of all guarantor until the
obligation in¬
bank loans now consist of con¬
many

teed
end

.

.

credit

loans."

and

The

—

nancial

volved

real

estate

Commercial

&

stands

under

Chronicle, March 24, 1955,

policies

affected

in

by
us

and

merce

over

it

dozens
most

ciety.'

history

300

years,

so.

Its

federation

to be
com¬

scarcely
but in a

Notes.

Despite a one-time widespread
prejudice to the issuance by pri¬
vate
banks
of
circulating hand
to hand promises to pay
money,

than

history reveals that this

our

done

inflation

was

successfully in
and in New York

England

City,

As

least

quarter of

War.

a

late

1924, nearly

billion dollars
of

reserves

a

added

was

the

banking

"It is plain that the

normalities
made

to the

system.

Era

were

in

traceable

thereby created

in

the

system of the nation.
are

suffering

effects

of

credit

too

much

to

is

after¬

hope that the

policies?"

Who

—

New

Deal,

The

by

E.

C.

signs

at

"If, however,
ride

until

upon

has

arisen

ren¬

is,

which, of
applied unless

to

the

path

establishment of

be

an

act

as

with

the

eral
pay

fiscal

only

any

intention to

should

their

present

great

among

us.

Our

than

when

go

beyond facili¬

the

This

freeing

narrow

crisis
come

in

serious

at

afflictions

to

seem

be

come

regardless of our expecta¬
tions, the powerful lines below

an

sinks

deeper in the quicksand of stran¬

gling

debt

the

running

annual

into

interest

billions

by

a

our

the

Great Scholar

a

Statesman

The

Life

"Men

are

homely

so

non-banking
banker

some

of centuries.

with

the

It

began al¬

beginning

of

so¬

instant,

that

bad

a

institution

Today it is the foundation
being built the great

structure of modern civilization."

to

far

go

one

board

nors,"

we

beyond

jof

the

wisdom

directors,

many

urged

In

to

the

the

this

in

past

evil

time

in

patience
in

able

here
has

for

been

call

them,

and

that

group to one comprehending the
wisdom and the ignorance of many

being
Trade, by H. R.

F. Bourne.

We have
succumb

competitors.
seen

to

other great states

mismanagement of
monetary affairs. Self-satisfaction
by our country is not warranted.
Under

a

existing conditions bank¬

to determine

their chief

cies,

poli¬

have to watch closely
policies and the many public
nouncements

of

one

small




the
pro¬

group

ond

than

Exercise

choice would
move

of

the

advance

gone,

constructive

.

arise.

v

The

.'.■■■

Dignity

of

backward

the

which
cost

us

would

be

the

dearly in 1929,

first

choice,

a sure con¬

clusion in the light of the follow¬

ing

August 8P 1955.

the

Elevated

The
seems

following by Lord Macaulay
to support the thought ex¬

pressed in the sub-title: ■*'

"Formerly, [that is, before 1694
when

the Bank of England was
started], when the Treasury was
empty, when the taxes came in

slowly, and when the
soldiers
rears,

the
to

sailors

and

it had

been

Chancellor

of

pay
was

of the
in

ar¬

necessary for
the Exchequer

hat in hand, up and down
Cheapside and Cornhill, attended
by the Lord Mayor and the Al¬
go,

dermen, and to make up a sum
by borrowing a hundred pounds
this hosier, and two hun¬

from

pounds

monger.

from

Those

times

that

iron¬

were

over.

The

government, instead of la¬
boriously
scooping
up
supplies

from
could

quired

numerous
now

draw

from

will

one

petty
sources,
wnatever it re¬
immense

Continued

matter of record only, the financing having

privately through the undersigned.

August 1, 1961-1974

Higginson Corporation

of'

Exchequer Is

•

natural

Lee

<;

England's

Chancellorship

/

may

;•

sec¬

business upon some bank.
The
dependence,
to
continue

so
re¬

action

1

rather

dependence of every non-banking

fresh

minders of it may be given, and,
because
endurance
has
about

would

the quotation within

10,

from Romance of

By

"endured

years,"

many

fact,

pointed

men

"gover¬

enable it to expand its view from
that of the wisdom of one small

mon¬

examined.

3%% Serial Debentures
Due

a

after the remedy has
on public attention."

years

been

Household Finance Corporation

of

or

piece of misgovernment is
always endured in patience for

$30,000,000

ligent
self-interest,
an
activity
which would make the public free

as

strous

con¬

a

day

comes, and the natural solicitudes
of common life are
so

New Issue

business

and

the
it

by

engaged

pressure of each

Is it

tinuance of dependence by every
banker upon the Federal Reserve

Richard

of

ley said:

is

United

choice?

appears as a

been arranged

continuance of dependence

every

upon

guarantor

called

This announcement

by our

Cobden, on page 144, the late
scholar and statesman John Mor-

remote,

but,

employed

by

And

dred

they

now

Such

are

sooner

bank

"money."

from

present.

should be heeded by all:
"As
the« United
States

paper

to

monetary

much

foreseen

be

who

ordinary functions of
banking.
For example,
its most important service prob¬
ably would be that of clearing

tating

private

was

follow¬

the

earlier stat¬

overseas.

his

fact

dependence

bankers

may

can

promises

illiquid.
impel

great

affairs

Often

expressed disclaimer would be of

very

alone

to

willingness

in¬

the things of

Government's

many

man¬

would

liquidity of

are

agent; and whose

expressed
its

State

pri¬

a

"Reserve,"

economic
utility which compose
it; yet many of our wasteful Fed¬

of

remedy is to liquidate the
Reserve System, and to

vately owned and privately
aged Central
bank
whose

ism which
cousins

Rate and Public

name,

very

dicates

redeem¬

Federal

from
some

Debt

1947.

resumes

considering this matter, help
be

gotten

goodness of the

Management, by Benjamin
Anderson,
The' Commercial
and Financial Chronicle, May 29,

to

blind

own

our

ing account of

the

of

M.

remedy
be

the

to

as

flation, jlnterest

pay.

connection

question

minds

dollar, then the Treasury will face
a
very difficult situation." —In¬

returns

allow the

real

the

they

ability in gold of its promises to
The

in

is

than

Remedy

that

inflation

until

and

us

let the matter

we

violent

greater

a

In
can

in¬

people

cannot

State

of

rates

been

These will

satisfy

their

to come.

children

our

and
greed?" — Which
America?, by Fred A. Wirt
(Industrial Management Institute,
Carroll College, Waukesha, Wis.,
Publishers), p. 11.

many,

The

the

moderate

terest.

profoundly
regrettable
our
dependence on one small
group of men.

honor,

still

is

ment

banks'

is

difficult.. Seven

the late Dr. Anderson,

,

der

There

in

things

have

before then.

course,

these

of

1929

since

A

amount

re

possible to fund the
vast floating debt of the Govern¬

are

times

many
were

gieauy

To do these two

ago

"It

many that "illjudged attempts to manipulate the
price level and an enormous credit

inflation"

the

Government

aiso

other sound think¬
ing economists, said:

the

generations

Road

supported by

Harwood,

to

unearned
and

ignorance

get¬

impossible yet, although
day of postponement makes

years

Economist, May 3, 1935.

The

all

ana

the process more

Is
ex¬

to

states.

not

every

Killed

Prosperity?—k Challenge

of

it

of

ducing

perience, so dearly bought, will
eventually be used as a guide to
future

out

the banks.

inflation.

Civil

our

System would involve

economic

attempts to
price i level, and

the

enormous

federation

securities,

we

disaster

our

squan¬

now

children

deliver

In

short,

normal

at

for

we

maintained

ting

ill-judged

manipulate
an

the

In

for

Liquidation of the Federal Re¬

are
directly
maladjustments

the

before

years

Shall

of

savings
are

potential

our

A Remark

serve

1929

to

land

our

the
of

children

Except during some periods
of
extreme
national
monetary
disorder, some individual banks

ent

through credit in¬

flation. To a large extent the dif¬
ficulties of the present depression

beginning

30

of

specie redemption
from the early days of our
presy

principal ab¬

the New

of

possible

communities

we

New

very

market purchase of securities.

Reserve

System and additionally, therefore,
undeveloped
sort
of upon the State? Or is it to be that
has existed during some banks shall
depend upon intel¬

which is

ers.

Reserve

the

Placed

—Banking Through the Ages, by
Noble
Forster
Hoggson
(1926),
p.

credit

Federal

our

squandered

income

genera¬
We have

increase.

fathers, and
dering

future

on

tions will also

and

rude
way

the

a

[banking's]

Federal

What is to be

separate agent in
advancement of civilization,

extends

doing

the

States of America.

distinct branch of

a

is

to heed

"

'As

canceled.

almost
affairs.

monetary

This fact should induce
the following:

on

as

crushing mortgage al¬

placed

legal

every
sends out
Bank

Banking is

its

of

obligation to pay
Federal Reserve Note it

a

Fi¬

"As We See It."

the

excess

more

.

A

up.

.

sumer

all

loan far

unnecessary,

future, that violation of
Constitution consisting of the
issuance of Bills of Credit such

Philadelphia, and in certain other

See testimony

subcommittee

to

the

make

our

the member banks,
possible for them to

it

dose

without reference to the immoral¬

principal instruments of these
policies, namely,
State
bureaus Banking and Currency Committee
and banks, or kindred concerns. of the United States Senate, March
Payments through bureaus, con¬ 29, 1954, as reported by Monetary
sumer credit
To date, the
and mortgage loans Notes, May 1, 1954.
by commercial banks, savings ac¬
counts, bends and stocks actively

made

this

to

organized

From

in

would

injected into the banking sys¬
tem by the Federal Reserve
open

it

business,
such a s, i n

of

ready

inclined, would find
impossible to manipulate in
so

This

was

monetary crisis, the
likely to find itself so

is

This created

for

another

System.

go

become

support of absurdly low interest
rates, as does the System.

savings at their disposal. In
1927, when business activity and
prices had again begun to slump,

Governors

Reserve

and

the

re¬

great

a

Board

management

J. ivi. rtornor

Board

1924,

institution, if, unhappily, it should
it

apparently with the object
supporting the price level, the

and

We, the public, for an understand¬
ing of current vital monetary af¬
fairs, are limited greatly by these
narrowing operations.
Moreover,

private

a

the

Federal

busi¬

year,

in

In

of

summer

invest and

managed Central Bank with its only connection with State as
fiscal agent, and which would confine itself to
ordinary
functions of private banking.
A

early

reserves

sumption of redeemability in gold, lies in liquidation of Federal
Reserve System, and establishment of
privately owned and
,

that

that in the last six months of that

a

banks and businesses.

over our

and

of

we

Reserve's arrival at domination

recalled

commodity prices were
gradually slumping in the spring

Federal Reserve Banks purchased
securities in the open market on

reappraise our recurrent banking
pciicies in the light of England's experience. Warns against
complacency, pointing out comparative speed of Federal

;

be

may

and

ness

William Blair &

Company

on

reser-

page

22

Chronicle... Thursday,

The Commercial and Financial

August 11, 1955

(574)

14

able in lawful

LETTER TO THE EDITOR:

of
"lawful
that one is
privileged to swap one piece of
paper for another, and the public
is supposed to accept that as "redeemability."
That, according to
Says, though expressing admiration for Alexander Hamilton,
Daniel Webster, is "fraudulent."
and the early national traditions on monetary policy, the
Mr.
Burgess
says
that
"the
American people have clung to
Treasury official fails to follow out these principles.
the concept of sound money and
deemable paper; against the paper
Editor, Commercial and Financial
the collar has been so secure in
of
banks
which
do
not
pay
specie
Chronicle:
people's minds that the flow of
for
their
own notes; against that
Your July
14 issue carries an
trade and business could go on
miserable,
abominable,
and
fraud¬
address by Dr. W. Randolph Bur¬
unimpeded by worry about the
ulent
policy
which
attempts
to
value
of their money.
This, of
gess,
Under
Secretary
of the
give
value
to
any
paper,
of
any
Treasury,
delivered before the
course, is one of the reasons for
bank, one single moment longer the
National Fedgreat prosperity and economic
than such paper is redeemable on
eration
of
growth of this country."
That is
demand in gold and silver."
Business
and
merely an abbreviation of a state¬

Comments

Securities Salesman's Corner Frederick G. Shull
See the Person Who Can Make the Decision
times
the
best
sales
presentations have been placed
before a prospect, and due to the
fact chat the ability to come to a
Many

decision

that

banker,

as

are

determined after the

was

called in, the com¬
a friend, or any
of these people
well qualified as you are
be

may

mercial

other person—none
to

help

the

make

prospect

your

request lor action took place, all
was lost. It
is like having a fine

right investments, and also to con¬
tinue to advise him during the

right bullet, and the
target.
You
can't
bring
down a duck if you are shooting
at clay pigeons.

years

the

gun,

I

wrong

remember

I

it

think

is

of my earlier
this respect and I

worth

repeating as a
^ood lesson in "what not to do."
I had met a prospect through a
had

-customer who

invest

who

and

Thjs

prospect

cash

a

fund

living

was

help

you

your
proposals to a
whom you have never
met, and who will undoubtedly
have preferences of his own as to

submitting

third party

to

income.

needed

if

that

certain

prospect to understand the
importance of the right relation¬
ship between an investor and his
advisor, you will eliminate the
needless, time wasting effort of

your

one

experiences in

to come.

am

1,500

investments, or friendship toward

miles away from her closest rela¬
tive who was an attorney and one
in which she had great confidence.
After
suggesting certain invest¬

he
obtain the busi¬

other securities salesman

some

would like to see
ness

place a value upon your
ments
she
said
to
me,
"That knowledge and ability, and you
rounds fine. Now if you will be live each day with the thought
£o
kind as to send these sugges¬ in mind that your purpose in your
endeavors
is
to
help
tions to my brother and see what business
he thinks about it I will be very other people to live better, have
much
interested."
Of course,
it more peace of mind, and obtain
was
a
waste
of time since
the a higher income and
larger re¬
capital,
brother didn't know my firm or wards from their saved
know

me,

ideas.

I

and

had

he

quite

spent

preparing this

few

a

own

hours

and I wrote a

case

detailed letter of

very

his

him, but I never received
the courtesy of a reply. This will
happen I believe in 95 out of a
100 times when you try to sell a
third
party by mail, especially
there

is

relative

a

this

do

not
on

their
waste

Don't
Do

write

you

never

investment

titude?

with him discussing an

of

one

would not need to meet Mr. John
Dokes

uncer¬

in

tainty?

Put yourself in your pros¬
pect's place. Either he is a person
has

who

had

investing
he

has

you

still

are

in

there

case,

securities.

Should he invest now—should

buy

what

he makes
know

want

you

are

the

have it. Should he place
confidence in your suggestions —
we

sufficient

have

confidence

justify his making
It

Is

a

IN

YOU

Confidence

try to close your
you
have established

confidence.

suggests

When

that

sale
this

prospect

your

submit

you

your

proposal to another party he does
so

his

because

mind

he

phrases,

not

or

made

should

will

advice.

vestment

trick

has
you

whom

to

one

he

that

go

Fancy
clever

up

be

the

for

in¬

words,
cliches

will not create this

atmosphere of
confidence for you. What will do
this however is entirely up to you
attitude

«—your

When

a

in

prospect

"Would you

other
says

words.

to

brother who is a lawyer,"
plain/in your own words that
have

you

please submit this to

my

ex¬
you

objections to doing this
but, from the standpoint of your
own

going to

do

welfare,
the

best

if

you

job for

him it is upon YOU that he should

rely for advice regarding invest¬
ments because that is your busi¬
ness. For legal advice
go to a well
qualified lawyer; for investment
advice

go

to

an

experienced,

qualified, investment advisor. The
came

investments?

in

holds true of other advisors




the

of

throughout

the

Dollar

for

How

'

hours a day do they work
at advising people on stocks and

many

that

States

Daniel

as a

dol¬

of 'not
But, ac¬

Webster, "ir¬
"mis¬

ally, for over 140 years. The con¬
the value of the dollar

fidence in

abominable, and fraudu¬
that is the type of
we are using in the United

today.-

of

fine

countries

The

adjustment.
for

grains

13.71

demands

gold

each

dollar

we

part of our history as a nation,
namely:
Daniel
Webster; John

in
it

literature, print some
cards
and
drop
them
off
in
lawyer's offices and every bank
carry

your

in town. You might some day get
a

few orders but I doubt if

have

clients

many

or

you'll
real
work.

Doesn't that add up?

Two With Fairman Harris
(Special to The Financial Chronicle)

CHICAGO,

111.

__

Kelley

Beach, Jr. and Albert H. Walters
have

been

University.

cerely wish Mr. Burgess were, but
his address Mr. Bur¬ he isn't—he speaks of Hamilton's
his respects to "our "tremendous determination to es¬
founding traditions in the field of tablish the country's money on a
finance." saying: "Every day in sound
and
reliable
basis": that
my office at the Treasury
I am "the sound principles of finarce
surrounded
by tb?se traditions. on which this country was founded
This evening, I should like to have been cherished during most
remind you of the nature of the of our history."
And then, almost

Early in

gess

.

.

pays

.

along with

inherited

we

traditions

financial

great

added

to

Harris &

the

staff

of

Co., Inc., 209

South La Salle Street,

Constitution

our

.

" Next, he said:

.

.

De¬
and

"Hamilton's most immediate and

most

of

tinues:

challenging problem was that the

1914

country had no money that could
be trusted."
And it is too bad

how

Just

Mr.

Burgess, holding

dollars "firmly at¬
gold." could possibly
have appeared before that com¬
mittee as an "opponent" of return
to the Gold Standard, is something
that he ought to explain to the
American people.

in high esteem

tached

to

in

"confidence"'in

ton

did to

the

integrity of the Dollar was to

instill

although we
have been
promised in its 19^2
Platform that our currency will
be restored to "a dollar on a fully
rightful

privilege,

convertible
It

seems

Mr.

gold basis."
childish, therefore, for
to

try

impression that

we

Burgess

erating

with

which, of
the

word
ever

man

of

take

the

Senate
ster

the New York and Midwest Stock

"I

Sound

a

are

word

for

of
to

grace

the

the

Congress
States,
namely,
Addressing

Feb. 22,

wisely said:

warn

—

not. But

it—take
the greatest states¬

my

United

have

Dollar

course, we

Webster.
on

to create the
today op¬

are

the

1834, Mr. Web¬
\

t

already endeavored to
country

against

irre-

standard monetary

authority, past
th«

oresent. that has questioned

or

principles" of Sound Money.
growing number of "voices
have been raised," and are contin¬
"old
But

a

uing
the

to

raised, "to question"
principles set in motion

be

new

that

this

was.

we

indeed, not imtil
re-estab'ished

had

country

a

«ounH

we

central

suffered from inadequate mon¬

etary

months
that

World War I. If
"inadequate monetary

during

was

an

policy," it would be interesting to
be given Mr. Burgess' conception
of what would have constituted
"adequate
ing

that

backed

monetary policy"

half-century

of

dur¬
gold-

Dollars.

While Mr. Burgess
tion

doesn't men¬

it, under the Federal Reserve

System, established in 1913. it was

clearly stipulated that all Federal
Reserve Notes were to be redeem¬

able

in

by the New

followed bv the present

seems

history." for he con¬

our

"It

Burgess

Mr.

banking system (with evident ref¬
that Mr. Burgess,
right at t^at erence to the founding of the
point, didn't explain to his audi¬ Federal Reserve System, in 1913)
ence
that the first thing Hamil¬ and during
this interim period

members of

Exchanges."*-"

spectacular

Deal, and sb'H being
Adminis¬
tration.
Why, the chief argument
to deny that "sound princinles of
of those favoring return
to the
finance" have
cb'ained
"during Gold Standard is that we should

which immediately,

Independence

of

claration

Daniel

Fairman,

of the founda¬

Nation's

right in that demand. It is, there¬
Under the sub-heading "Some
fore, pure bunkum to call the dol¬ Questions," Mr. Burgess continues:
D.
White; lar the "standard of value," for
"But in the past few years some
Henry
(the elder); only Gold can perform that func¬
voices have been raised to ques¬
Andrew
Carnegie;
Andrew
W. tion.
tion these old principles."
That is
Mellon; and
the late Professor
Still claiming to be following in a
curious
statement;
for
there
Edwin W. Kemmerer of Princeton
Hamilton's footsteps—and I sin¬ hasn't
been
a
competent
gold-

don't

R.

our

other

of

Andrew
Cabot Lodge

any

satisfaction out of 3rour

one

was

in

instill

people

Sherman;

policies."
In just w^at
give it a "value" of 371.25 grains respect we had "inadequate mon7
comes
to
investment
securities of pure silver: and, likewise,, a etary policies" during some "in¬
who is qualified, THE LAWYER "value"
of
24.75
grains of fine terim period" prior to 1914, Mr.
OR YOU?
gold—which "values" were backed Burgess does not disclose.
But
with the privilege of "redeem- he,
If you don't believe this, live it,
of all peop^, must surely
practice it every day of your busi¬ ability," on demand, at those fixpd know that from Jan. 1, 1879 until
values.
Those are wonderful "fi¬ March, 1933. there wasn't a time
ness life, and if you are not will¬
ing to explain it in your own nancial traditions"; but the orivi- when any of our subsidiarv curfriendly, kindly, unemotional and lege of redemption in gold J~as rencv (paner as well as silver)
understanding way to your pros¬ been denied us ever since 1933, could not be converted into Gold,
pect, then you are not for this and the present. Administration on demand, at $20.67 an ounce—
business.
Get yourself a boy to
has rot seen fit to restore
that with
the
exception
of a
few
study
When

the

the

of

tions

helped

and

people

them—and they are perfectly

owe

this

which

success."

into

still

world

not changed,

was

and Hamilton,
except fraction¬

Washington

under

place

gold—the commodity in which in¬
ternational balances of trade are

Sound
greater

a

.

'Sound

the

"From

Actually, the only "standard of
value" that the world accepts is

contributed greatly

maintenance

to

besides brought

men

many

were

you

no

prospect's
are

when

banker

business loan, a dentist

bonds, on reading and
this
specialized field?

Don't
until

to

decision.

a

of

Matter

Is
created

you

a

training

£hould he do what you suggest?
not the answer,

the

of

one

in the country—•

toothache, a doctor when you
are
ill, but when it comes to an
investment in securities, why go
to
these
people? What is their

in

person

from

firms

a

whom he should place confidence?
There

law

commercial

if

mistake—how does he

that

opinion

A
lawyer when you need a
contract drawn, or legal advice, a

he

suggest—what

you
a

legal
finest

don't need another lawyer to
their legality. Isn't that a
lawyer's business?

either

In

lawyer for approval.

study

doubts in his mind.

are

his

to

you

the first time you meet, but your
job is easier than if he has never

invested

several hours
investment

ing already have the benefit of a

at all. Assuming
securities before,
stranger to him

a

spend

bonds and then mail your

Besides, the bonds you are offer¬

or none

bought

and

some

offer

experience in

some

there

card in every
lawyer and commercial banker's
office in your town and it would
do you about as much good. You

accomplish when you are
attempting to convey the idea to
your prospect that they should do
what you suggest, it is first neces¬
sary
to
know
what
is
going
through his mind. What is his at¬
not

mention, however, is the fact

reported:

as

and

money

fails to

Burgess

Mr.

What

are

redeemable" paper money is

position it held, with
minor exceptions, right down un¬
til
the New Deal took over in
1933.

Senate

the

a

continental'."

a

cording

1792—a

in

You could

meet.

basis

sound "specie-backed"

a

on

worth

instrumental erable,

was

taken

has

the American Dollar lent";

time trying
people whom

to

and

circulars

who

initiating

in

to

should

is

lar'

Hamilton who

literature with your

It

that
presentation
Mr.
Burgess displays great ad¬
miration for Alexander Hamilton
—as
well he might; for it was

to

go

.

Frederick G. Shull

Throughout

Hamilton

by

adopted

were

exploration.

so.

your

letters

may

leave

In order to understand what you

and

man,

will do

who

others

will

careful

Currency Committee of
as an opponent of re¬
to the Gold Standard.
Here
his words on that occasion,

and

ing

George Washing¬

of

the whole world.

If you can¬
serious effort

a

force

on

the founding of our na¬
reluctant tion until
1933, with interruptions
Congress and carried out under
of serious
war,
the doPar was
great difficulties.
.
The dollar
firmly attached to gold. The gold
today is a standard of value for value of the dollar, established

ton,

Burgess

stand

part,
eliminate
those
who will not agree that

are

you

to

to

What

the

eral Reserve

turn

moral

of

points

address

your

people

lawyer advisor.

after

Dynamic

f

eral

these results.

achieve

a

or

o

Burgess

Mr.

when he appeared
Fed¬
Matters of the Bank¬

the Subcommittee on

before

"These

Roots

by

March 29, 1954,

Burgess)

(Mr.

He

money.

policies of Alexander
Hamilton, supported by the great

recommend
of action to

course

proper

to

says:

that is qualified to

the

appears

' made

ment

respect to our present-

nancial

will also help them to clearly

son

day

en-

Burgess

Mr.

im¬

erroneous

ti tl ed: "Fi¬

understand that YOU are the per¬

proposi¬

my

tion to

when

If you

you

pression

hold with

July 2. The
is

another

to

swer

Clubs, Inc.,
Louisville,Ky.
article

the
good an¬

quotation from

above

great Webster is also a

Growth." Sev¬

have initiated.

you

The

Professional

Women's

on

joying
the
status
money" — meaning

Burgess' Monetary Views

On

By JOHN DUTTON

money"; and for the

past 20 years those notes them¬
selves, not Gold, have been en¬

gold, on demand; but the
threw that in+o the ash

get back to the "old
the

verv

princinles"—

principles estab^shed by
and
Hamilton,
to

"VVps^in^on

which Mr. Burgess refers

in such

glowing terms.

down to "Our Policies
set forth in the July
"Chronicle" article. Mr. Bur¬

Getting
Today."
14

as

savs:

gess

"We are. in fact, in the
following policies

Treasury today,
which

are

closely parallel to those

by
Hamilton
165
And he lists them by

inaugurated

ago."

years

number,
1.

as

follows:

"We believe in. and ar<>

work¬

ing tow°rd. a balanced budget.
..."
(He fails to explain, how¬

is necessarv to bal¬
budget
in
terms
of

why it

ever,

the

ance

"printing

"honest"

in

than

press"

dollars
dollars

rather
of

the

gold-standard variety.)
2.

"We

means

have

sought

bv

many

to distribute the debt more

widely among more peop'e.

nresumably,

(That,

means

.

.

that

effort is being made to en¬
courage the public to buv Savings
Bonds—and the public should be
so
ercouraged.
But the Admin¬
istration should not overlook the
fact that in buying those bonds
every

people are "buying money for fu¬
ture
delivery"; and if the pur¬
chases are made with

dollars car¬

"value" of $35 p°r ounce
of gold—as claimed for the qual¬
can in 1933. where it still reposes.
For, according to the fine-print ity of today's Dollar—the Govern¬
ment should
guarantee payment
legend on today's Federal Reserve
in dollars of the same "quality."
Notes, they are merely "redeem¬
New Deal

rying

a

Volume 182

That

renders

the

with

have

ingly to
cies of

that

Standard,
firmly fixed at

Public

/

worked

unceas¬

i

carry out Hamilton's poli¬
effective central bank¬
a sound
..."
(As

mechanism.

who has had considerable

Southwestern Public

ex¬

that "the core of
mechanism"

Gold—the

is

which

stance

value,

Andrew

said

correctly

it

is

world's standard of

dynamic

in

itself

the

value,

Burgess goes

"the

in

fall

to

on

.

.

growth

of

the

exceeded

that

is

Texas

Mexico, all these sections be-

interconnectedThese
areas
are

ln§

diversiiied

i,

quite

well

between

as

any other country in
world.
The
principle that

farming,
lndustry and commercial activity.
Amarillo, the principal city
served, is the center of a cattle-

good money is the best foundation

raismg and grain area. It is also a

for economic

substantial

United

States

has

almost

the

by

permit increased efficiency,
which has held the increased cost

kwh.

per

area

The

is

company

growth is supported

commercial

center,

as

base, although

earning

now

the rate

on

other Texas

study the entire rate picture.

in the country. The City also has a

time, allow him¬

large number of firms engaged in
light manufacturing,: publishing,

1 "■
millions
Funded Debt--—$100

etc.

Preferred Stock

at the

can,

cles

same

be one of the

self to

"to

return"

main

obsta¬

the

Gold

to

monetary pol¬
the world."
His

with

But,
of

"sound

considerable

a

Switzerland, if there is

any na¬

today that is
money" basis, that

"sound
to

news

me.

By

imagination
basis:

for

on

we

continuing

are

with

operate

acres of irrigated land m
territory, and many of the irrigation pumps are
powered
by
electricity
New
Mexico
is
the

its

"sound money"

a

"irredeemable"

to

center

pa¬

The

per—correctly described by Dan¬
iel Webster as "miserable, abom¬
inable, and

Burgess

end

of his

endorses

rapid

industry.

\

has enjoyed very
as
indicated by. a

growth,
increase in electric sales

of 256%

speech Mr.

"the

potash

postwar

fraudulent."

Near the

the

of

company

education

in

111%

vs.

utilities,

and

electric

plant

electric

for all

372%

expansion
the industry

vs.

both of youth and of adults in this

average

country.

increased rapidly from 56c in 1945
to $1.36 in 1949
(with dividends

.

And he goes

.

"Early youth

say:

to

on

not be the

may

time to teach the

theory, of sound
in the technical sense, but

money

it

the time in

is

cate

attitude

an

which
of

incul¬

to

mind,

ap¬

an

to life's problems."
That
sound advice; but in finance,

proach
is

such

"education"

limited to

just

should

the monetary

authority,

one

Hamilton. " It

.

should

be

not

views of

Alexander

include

the

-

of

130%.

Share

earnings

increasing from 34c to $1.00). In
later years, however, the rate of
growth has slowed, current earnings
approximating
$1.57-$1.60,
with

a

current

dividend

the

postwar

years

the stock

period

advanced from 6 to

of

rate

-

$1.32. During the first four

vof

16, and it has

recently been selling around 28V2.

icans who have

Earnings
for
the
fiscal
year
Aug. 31, 1955 have been
retarded
by very bad weather.

money"

Much

views of other well-known Amer¬

such

promoted "sound
throughout onr hi^Wv,

as:

Sherman;

Henry

Daniel

Webster, : John

Andrew

^ D.
White;
Lodge (the elder);
Carnegie;
Andrew
W.

Cabot

Andrew

Mellon; Edwin W. Kemmerer; and
today's
outstanding
exnert.
Dr.
Walter
E.
Spahr of New- York
University.
.

In

conclusion, let

constructive
Mr.

me

add

this

recommendation:

Burgess

If

really favors "sound
him give support to

money," let
of the gold-standard bills now
pending in the Eighty-fourth Con¬

the

for
Bridges' bill.
—

example,
Senator
S. 1491—instead of

opposing such

lesgislation,

did

29.

March

on

been

doing

ever

1954,
since.

FREDFRICK
2009

Chapel

New Haven

he

as

has

and

that

so

irrigation sales have

creased.
been

The

cool

tioning

Rd.,
15,

Dempsey-Tegeler

(Special to The Financial Chronicle)

ST.

LOUIS, Mo.—Fred D. Mil¬

Jr.

is

now

connected

with

Dempsey-Tegeler & Co., 10th and
Locust, members of the New York

for

mate

average

of

for

of the

some

the

suffer

also

current
and

unless

July

the

may

company

wind up at the end
with about $1.57 or a

of

tax

j

Lh(e...CSa,lL^f.^ala
schedule
in

construction
years,

LOUIS, Mo.

—

Eugene

u

recent

with new construction costmillion in 1953 and $21
in 1954. This year, how¬

$23

with
considerable
excess
generating capacity, the con¬
struction program has been cut to
$13 million. The company used to
do equity financing about once a
year
(there were six offerings
during 1949-54) but the manage¬
ment now hopes to take a recess
until March, 1957. Next spring the

Co.,

Locust Street.




Inc.,

company

issue $10
bonds and $3

may

mortgage

million
million

preferred.

could .be

the

Chronicle

be

income

of

free

income.

It

seems

well

extended

»

I

Herbert D. Seibert & Co.

[

room

Chapel (Typographical Union No. 6).

;

Welch Industries, Inc.
(A Delaware Corporation)

conpro-

150,000 SHARES

beyond

Kidder Peabody & Co., 17

OF COMMON STOCK

Wall

st., New York 5, recently issued
a
comprehensive bulletin on the
company, from which some of the
information has been

above

$2.00 Per Share

sum-

(Par Value $.50 Per Share)

marized.
:

A. C. Karr Adds

A

(Special-to The Financial Chronicle)

.

LOS

M. Solmitz has been added to the
staff

of

A.

Wilshire

C.

&

Karr

Co:,

Company devoted to the reclamation,

processing and resale of ferrous and non-

ANGELES, Calif.—Robert

ferrous

metals.'

The

3670
located in El

Boulevard,

Company's plant is

Paso, Texas.

-

Joins Kidder

Peabody

SAN FRANCISCO,

A

'

(Special tP The Financial Chronicle)

Calif.—John

copy

of the Offering Circular

obtained

may

be

from

H. Smith is with Kidder, Peabody
& Co., Russ Building,

WARREN CLARK

& CO.

With Kerr & Bell i
(Special to The Financial Chronicle)

W.

C&l LIFE BUILDING

711

♦

ANGELES, Calif.—Martin
is now connected with

HOUSTON 2,

Urov

TEXAS

Kerr & Bell, 210 West Seventh St.,
~

^

Exchange.,

Anooioe

T

^

*

Qtnptr

.

With King Merritt

for

(Special to The Financial Chronicle)

SPRINGFIELD,
B.

use as

boiler fuel, but

Mo.

—

Clifford

V

Morris has

King

joined the staff of
Merritt & Co., Woodruff

Building.

Warren
711

Clark

&

Company

C&I Life Building

Houston

I

2, Texas

Joins Bache Staff
(Special to The Financial Chronicle)

CLEVELAND,
has

with Bache
East

Sixth

&

Ohio—Theodore

become

Please

send

me

a

copy

of the Offering Circular relating to

Welch Industries, Inc.

associated

Co., National

City

Building.

cent

A.

418

cost

averaging about 9c per
However, the company is
fortunate in having fuel adjustment clauses for a substantial part
of its sales. Moreover, the big new
generating plants built in recent
mcf.

With Paine,

Webber

NAME

;*

ADDRESS..

(Special to The Financial Chronicle)

CLEVELAND, Ohio — Harold A.
Woehrmann is now with Paine,
Webber; Jackson & Curtis, Union
Commerce Building.

CITY,;

i

and also received many

composing

tributes from members of the

five-year amortization is
obtained onr additional property,
as requested by the company;
t' ■

on

farewell party tendered to him by his

1957, if

Stratton

price has risen about 60% in
the past three years, with the re¬

Miller has become associated with
&

to

ordinary

as

LOS
u

a

associates in the

portion of the dividend which is
tax-free will gradually
decline,
However, the non-taxable period

more.
u

gift at

to

subjects. Mr. Lightbowne was '
recipient of a handsome remem-^f

than

lower

probable that this factor will
tinue in 1956-7 though the

may

August

interest

the

brance

weather

appears

current

economic

Lightbown*

Power

estimated

llikely that the

changes. It

little

G.

employee. At various times in :
he has contributed articles of ♦

growth companies

Utilities, Houston
Central & South West,
& Light, etc.
The
stock has a special feature in that
slightly over half the dividend is

com¬

year,

efficient
the past

Texas

as

Florida

loads

August

duty to perform—original* J
and independent in' his •
thinking and opinions and always de- j
pendable and mindful of the welfare of j
the paper of which he has been such an i

Lighting,

air-condi-

While the

15.7' but

and \
Lightbowne i
tasks that it 1

accuracy

Mr.

conscientious

100

$165

for

thought.

the

(Special to The Financial Chronicle)

Herrick

Total

had

behind

2-3c

was

31

At the recent price around 28V2
an(j paying $1.32, the stock yields

been running
about lc ahead of its budget esti-

earlier

pany

cost gas

With Barrett Herrick

Barrett

dealso

Southwestern has enjoyed low-

and Midwest Stock Exchanges.

ST.

the

has

and/ refrigeration

have been lower.

51

composing room with 1

record

has been his

Wm.

ever,

July 29, 1955.

ler,

that

9

i

11

"Chronicle."

has been faithful in all the

60

14

}

a

million

Connecticut.

Joins

weather

so

___i

___

a

(there .> have
.been
nearly 6 inches of rain recently)

ing

G. SHULL

become

meticulous

%
;

enviable

an

^

Minimis

Stock
Equity
(4,087,470 shs.)

"mudhole"

one

gress

has

area

in the Chronicle's

Com.

ended

of

'

•

as

articles

the 50th
anniversary of his service with this paper, i
During the past half century, Mr. Lightbowne has served j
as a
proofreader and in other capacities i

fol-

as

was approximately

s'

other subjects to the

many

on

-

largely jng current earnings of close to
cotton,. $1
go, the price-earnings ratio is
South- 17
which is above the general

r-ervric^ j3iS °,v?r

3,000,000

the United States

can

be said to be

o^nnrfnnn

is

^

,

J

contributed

It is with
regret that the management of the Chronicle ,
the retirement of William Garfield Lightbowne .

.

r' chemicals, 4.6% which is about average for
region and ajj electric utility stocks. Assum-

•

on

stretch of the

no

carbon

m

P

Pecos

,

Valley
are
agricultural,
mainly
in
alfalfa,
sorghum,
etc.

exception

tion in the world

fuC

the

.

activity

+

fu°'

money."

the possible

production are im¬
South western's
ter¬

gas

in

.....

'"sound monetary policy" presum¬

includes

i

•

ritory, and Phillips Petroleum has
one of the
largest refineries in the
world
at
Borger. There is also

of revival of sound

throughout

' 1

:

...

portant

Again
quoting
Mr.
Burgess:
"The period from 1951 on, I would
say, could be designated the period

ably

*

Oil and

Standard.

icy

'

have been the highest

room,

announces

increases, and it has emp]0yed Electric Bond and Share to

understand why he

area

economics and

ra{e

is

politan

on

on

salesapeedr family Vt^fefo-

difficult to

himself, Mr. Lightbowne, who served

the rate base as determined by the Commission. Thus
^e company may decide to seek

earned,

economic history."
While
Mr. Burgess deserves applause for
voicing those fundamental facts, it
our

com-

earn substantially more. In
j\jew Mexico less than 4% is being

panies

writer

proofreader in the composing

years

x?
?/?S' -anc* ^e1Pecos Y.alley, *n somewhat less than 6%
New

that

say

fast-growing

Panhandles, the South Plains

").

.

the

Service

miles in the Texas and Oklahoma

Carnegie

"cannot

because

sub¬

one

A fluent

utilities, with some service areas per kwh to around 15%. Producin
adjoining states. It serves a tion cost last year was still exterritory of about 45,000 square tremely low, only about 2.65 mills

sound financial

a

of

one

perience in the banking business.
Mr. Burgess must be fully aware

of

Lightbowne Retires

-With "Chronicle" 50 Years

By OWEN ELY

Southwestern Public Service

ing system as the core of

Mr.

W. G.

Utility Securities

an

financial
one

15

(575)

Gold

of Gold.)

ounce

"We

The Commercial and Financial Chronicle

...

imperative

the

Dollar

$35 a fine
3.

it

to

return

we

Number 5454

*

"stock-of-the-month" by o n e

Mental Health and Vacations

service. It showed little pres¬

market's
heavier periods but, like the
other oils, was hardly a mar¬
ket feature on strength. The

THE MARKET... AND YOU
Technical

considerations

during the

sure

STREETS

By WALLACE

By ROGER W. BABSON
us are a little crazy," Mr. Babson hints that
be factor in causing people to be unbalanced.
Says Gravity Foundation at New Boston, N. H., has some evi¬
dences showing the effect of the moon on brains of hospital

Asserting "most of
gravity

petroleum group was Undis¬

payment on American tinguished for the most, with
and money market maneuvers Tobacco, as against the com¬ Ohio
Oil repeating
its ap¬
inspired a dour show in the parable benefits of General pearances on the lists of new
stock market this week. At Motors, showed 30% higher lows to rate it a sour note in
least

than

far

session,

one

extra

well earnings and 79% more divi¬

with

200

below

gainers and more
800 losing issues, was a
more
one-way
market

been the
pattern since the mid-March
selling prompted largely by
the Fulbright market study.
than has

showing

*

*

dend for the

same

the

in

vested

co,

the

would show 35%

con¬

on

Instruments

Texas

*

❖

the
The

further

brokers'
with

hand

to

come

excuses

the

was

without

Kennecott,

while

week

the

coming

actually

to

tightening of the grips with its previous peak
rate, coupled only a point or so away, was

loan

indications

that

Wash¬

able

put a couple of ad¬

to

on

new

low

this
has

co ve

and the

sharp trims of

this week and last

ly due to the
occupation of
the blue chips
undue weight

large¬
abnormal pre¬
investors with
which have an
on the indus¬
were

trial average.

Defense, Copper and Food
Shares

Outperform

the

Market

Aircrafts, while somewhat
erratic, were one of the bet¬

ter-acting
the down
the

in resisting
pull, largely due to
groups

oversold

conditions

into

which

they had plunged in
easings of interna¬
tional tension.
General Dy¬
namics, apart from its work
in
atomic
submarines, was

the

able

first

to

carve

fat

out

gains
even
in the face of selling
elsewhere.
The strength
seemed

to derive from

some¬

what vague new contracts

for

rior action'with such
Tea

hold

and

Fair

Food

For

from

living.

This is made from

derstand

it

many

pended

upon

Perhaps

I un¬

to

de¬

some

Market's

*

others it is sex,
abnormal

ambition,

downs."
who

that

about

those
ma¬

a

jority of things, or about the more

things,

unpopular

called

are

in¬

sane!

days spent by me at the

Foundation

Research

Gravity

at

makes me
wonder if gravity may' be a factor
N.

Boston,

H.,

,

causing people to be unbal¬
anced.
Certainly if I were con¬
sidered so afflicted, I would try
in

and

climates,

locations,

altitudes; that is, to change the
gravity pull on my brain.
Some
brains
to

surely

are

the market.

were

the

than

gravity

brains

is

an

unsolved

question

psychiatrists
are
asking:
it that some people can
go to the edge of a high building
without any discomfort or sense
of danger, while other people are
is

solely tempted to jump off? Two
persons cannot necessarily with¬
stand the same gravity pull. When

jumps out of a high win¬
a hotel, is he truly insane

person

dow of
or

ignore heavi¬
higher in good
style. One interesting tabula¬
tion on prospects of either an
increase

in

the

rate




or

an

A

Favored

Cities Service

Oil Issue

[The

merely exposing an abnormally
brain
needlessly to a

sensitive

article
was

favored
time

at least in the market

including

its

studies,

selection

as

a

do not

coincide

Chronicle.

expressed

in

necessarily at
with

They

are

those

this
any

of

presented

those of the author only.]

the
as

Join King

Merritt

(Special to The Financial CxioiJicle)

Aaron C. Hailey, Enoch

Darrell
Gourley,
A. John¬

L. Leascher,
Donald
E.

John R.
Teague,

SPRINGFIELD,
W.

Gourley,

.

Doril
Marshall,

son,

have

become

Merritt

King

—

A.

and

Thrower

S.

Canot

Mo.

James

&

Simon

R.

affiliated

Inc.,

Co.,

Woodruff Building.

Now With Hill Brothers
(Special to The Financial Chronicle)

Mo. — Joseph G.
Jr. is now with Hill
Brothers, Security Building, mem¬
bers of the New York Stock Ex¬
ST.

LOUIS,

Petersen;

change.

With Hall & Hall
FRESNO, Calif.
been

has

added

Hall,

&

Hall

Chronicle)

John H. Adams
to the staff of

Bank

of

America

Building.

Joins W. L. Lyons
(Special to The Financial

LOUISVILLE,

Chronicle)

Ky. —A.

Craig

Jr. has joined the
staff of W. L. Lyons & Co., 235
South Fifth Street, members of
the New York and Midwest Stock
Culbertson,

Exchanges.

dangerous gravity pull?

Eastman, Dillon Appoints

What About the Moon?

that the Gravity Founda¬

I find

tion

has many

the

effect

of

evidences showing
the

brains of hospital
seems

to

"full"

or

be

a

"no"

moon

patients.

on

the

There

correlation between
moon

periods and

"high tides,"

it must have an effect on certain

views

health

our

Church."

"Open

an

of

which

a

do

(Special to The Financial

Here

Why

may

good to sit quietly alone for
hour a few days each week

an

others.

tons of water to cause

solidation.

another

group able to
ness and work

half
in

it

pills,

more

sensitive

more

group were
military training planes, al¬
leaving a bit less enthusiasm accidents, fires, and even crimes.
though the company has been definitely easy. Some of the for imminent dividend hikes Druggists will tell you that their
sales of
sedative pills (such as
working on such projects sugars also showed evidence and stock splits that would be
phenobarbital)
vary
with
the
of a bit of bargain-hunting
right along.
likely to rekindle a new ad¬ phases of the moon. Since the
*
*
*
despite the general trend of vance without a
period of con¬ "full moon" can lift millions of

Tobaccos

ing

with

An Unsolved Question

New

is

Jesus

that

to be called "The
Great Physician."
Instead of tak¬

Thrower

A few

aching
limbs,
other ailments,

entitled

or

few "break¬

is

fact

unbalanced

are

many

insanity,

of

conclude

will

truly

Tenth

20:17),

(Exodus

The

different

corporate, managers,

pride,

or

there surely would be

Technically, the market
was
generally credited with
Otherwise group action was
either to slide with the ma¬ being in a' corrective stage
with
the arguments
raging
jority or to offer an irregular
over where,
and when, a re¬
pattern as individual issues
sistance
level is to be en¬
swayed with their particular
countered. The ominous signs
outlook.
included a marked pickup in
❖
*
*
volume on heaviness plus as¬
Among other divergent
cendency of new lows over
notes were Ruppert Brewing
new
highs with many more
which was able to nudge high¬
issues poised on the brink of
er
off its year's low while
joining the ones that have al¬
Pfeiffer Brewing was reap¬
ready posted new low-water
pearing on the list of new marks for the
year. The an¬
lows. Melville Shoe continued
ticipated good earnings re¬
to put on an above-average
ports are largely history. Also
performance while others in the surface indications are
the group were lackadaisical
that the firming moves in the
or
worse.
Heyden Chemical
money market haven't been
was an
apparent favorite lost on

with

money,

diseases,

and

doctors

when

that

studies

with others it is

Commandment

Technically

With

subjects!

is

If we all obeyed the

fear.

Corrective Stage

while others in its

it

people

physician),

a

care¬

of itself.

heart

thev

of

should help pre¬
breakdowns, but is

their

ulcers,

all unbalanced on

are

or more

one

many

❖

❖

we

reaction

a

It

forecast

finish

not now in hos¬

or

nervous

cure

I

for years.

many

only on the advice of
because

no

ergot,

have

women

vent

fun¬

a

upon rye.

related

is

which

Jewel shrugged off the good report
able- to with some determination.

overall heaviness.

observance, family pray¬
practicing the Golden
church
"attendance"
is
increasing;
but
this is mainly a symptom of ten¬

Rule. Newspapers tell how

less

which grows

present

and

ers,

sion

L.S.D.

the

Sunday

called

gus

that

believe

I

for

reason

with

their

limited

main

perimenting

drug

but per¬

the
in¬
crease in mental upsets, heart and
other troubles, is the decrease in
Personally,

Now doctors are ex¬
a

you

haps not.

from

drug

a

that

so

a

brain

vacation resting at home;

"snakeroot."

as

ground or make
progress in the face of

enough

India's

pitals should take chlorpromazine,

vance

your

to

reserpine, or some other tranquil¬
lizer (these drugs are to be taken

York Central, which

roof of

Perhaps

mental

disorders.

made

have

doctors

some¬

may

to the ground
high building.
is
strong
can take your

coming down

from the

dis¬

red

years,

trip

a

answer

Importance of Religion

is

New

like

drug

cure

Babson

W.

Roger

The

so

be

may

vacation find it

a

"take

be that
they need a change in their grav¬
ity pull.
Taking a trip to some
different place may be for them

that

some

territory.

not

was

where"

Most doctors

believe

to

necessary

afflicted.

only still vancing sessions together either highly favored by the
gravely concerned about the with a bit more conviction partisans or acutely libeled by
high level of consumer debt, than the others in the divi¬ those who view it with jaun¬
but was contemplating new sion.
dice, had a somewhat better
❖
*
*
repressive action after con¬
market experience than most
sultation
with
commercial
With the firming in money in the
group or the rail aver¬
credit executives.
rates aimed mostly at stifling
age, itself, for that matter. It
.❖
'
*
❖
sales of hard goods and re¬ was caught up in the general
For the industrial average sidences, some attention was downtrend a times but usual¬
the cumulative burden was a diverted to the supermarket ly managed to rebound with
loss of a score of points from and food companies which are some conviction even in the
of a
the all-time peak reached a more basic to existence and course
single session.
couple of weeks ago, erasing not affected directly by the Pennsylvania Railroad, how¬
about half of the "summer money market. They were far ever, despite a good earnings
rally" achievement of June from being among standout statement showed little ap¬
and July. Both the swift ad¬ features, but did show supe¬ peal
to rail followers and
ington

most in need of

relative

friend

or

weakness with appear¬
in

of

earnings

right pressure and Rock
was the outstanding is¬
ances

every

column
some

Island
sue

Prob¬

reader

■f

handy

such

by

ably

of establishing na¬
tion-wide marketing facilities,
backed by a rising sales chart
and rather constant

occu¬

cases.

the process

at

are

pied

-

First of the

our

present

expanding mood and is in

equivalent

investment.

"sup¬

various

of

attention
from
the
market
return
analysts since the firm is in
mammoth an

on an

hospital.
hospital

beds

tightening copper sup¬
port" levels as the market ply situation also bolstered improvement. But the recom¬
broke out of its trading range. the copper shares which, mendations had little influ¬
The rails, far from inspiring while a bit more susceptible ence market-wise and it, too,
to
selling waves, generally was among the issues that
a
new advance,
were promi¬
nent in this action and set the outperformed the general sought new low ground with
market. Phelps Dodge and In¬ some persistence.
stage for pressure on any ex¬
*
%
spiration Copper were able to
cuse.
make the rather sharply re¬
The rail pattern was one of
Excuses for the Break
duced list of new highs for as much disinterest as out¬
of

downside,

one-half

About

the lower-priced issues was
Tobac¬ also the
beneficiary of a bit of

will

citizens

S.

sometime be in a mental

among

change

a

U.

10

every

more

the

of

that

than

According to statistics, one out
of

com¬

a

need of change in gravity

a

in mental

*

❖

vacation at a different place may
pull. Lays present increase
upsets to neglect of religion.

Holds need for

patients.
mean

its group.
*

may

comparison

same

motor maker

breaching,

cigaret

in the dividend rate of

❖

sisted of the

amount in¬

Even without

pany.

*

The technical situation

to

Financial Chronicle... Thursday, August 11, 1955

The Commercial and

(576)

16

sensitive

human

brains,

which

CARLISLE, Pa.—Eastman,
lon

&

York

Dil¬

Co., members of the New
Exchange, announce

Stock

appointment of Edward An¬
Parsly as Manager and
M. Martin as Assistant

the

derson

Kathleen

Manager of their
at 100 West

fice

Carlisle, Pa., of¬
High Street.

Cady Elected Director
Everett
ner

W.

of Cady,

Cady,

senior part¬

Roberts & Co., New

York, N. Y., member of the New
York Stock Exchange, has been

of E. W. Bliss
Howard U. Herrick,
Why is it that vacations do some President, announced today. Mr.
people so much good this time of Cady also is a director of the
■RiiHH fomnanv.
year?
Why do those who feel

consist
water.

mostly of nerve tissue and

elected

a

Company,

director

Number 5454... The Commercial and

Volume 182

Continued

from

Financial Chronicle

strong

11

page

tlJ1

_

out of date. On one hand
intensely mecnanized and
industrialized civilization; on the
other a romantic legend. The economic and historic forces that ereyears

is

an

dead. Put the

ated this legend are

much alive,

still very

legend

is

Not

clearly defined

so

as

it once

.

one of^the ooys, they are simply
Tue situation would
be similar to the story about tne
man wno, for many years, could
never get enougn money together
to buy a tailored suit. However,

caricatures.

one day he

did, etc. etc.

...

economically

is

It

istic.

unsup-

But

It is all of these things.

un-

about how had it is to accomplish
less as some of the writers have

said? I certainly don't think so,
between
women's
potentialities because I made it my business
and
her
actual
possibilities
of to do a lot of reading on what
achieving them, we are being un- many groups and writers have
realistic and unfair ourselves.
have said on this subject before

til

recognize the basic conflict

we

these influences with
strongly today?
One ex-

Why
us

are

so

planation is that when this country was younger, the business operations were of the frontier type
developed through heavy in-

and

dustry such as shipping, railroad-

mining, logging, milling and

ing,
steel

production.

has

essentially

been

and

The climate in

been

have

women

operated

businesses

these

which

masculine
tradition-

ally excluded from the beginning,
The roughness of the work, the
hard

surround-

conditions

living

jng it, make this more or less inevitable.
Some of the heads of

be

I

prepared

my

contradiction

talk,

after

'

and

I

find

contradiction

t
g
u
se g eat volumes.
That is why I deemed to talk as
individual and from my own
personal observation, rather than
quote some of the printed, mixedup stuff that has been written. In
my opinion, the field is open for
women in business in what they
want to do if they stress their
natural strong points. And when
some of the old prejudices and
an

some

had great success in the matter
0f intuitiveness with a group of
30 registered nurses who are able
to visit a customer and after a
studv senerallv Dut their finger

is wrong with

what

-on

that they are very able, even
when men fail, in bringing this
out jn^0 the open.
f'

m,-,,

-ier,

particularly in the
t
^ particularly in the
In
iolf fhbflnrt
PxrPi !nt IJ! L
f J
nWol
Thp

t

patience
of

a

~

h,u

generai

fhi"
t
nn
on

are

tv'

t

finH

quite

ineffective'on

nf

'
mL S
be job
.n° doubt
.ln my mind that
requiring artistic sensi¬
hP
a

a

no

inh

rnv

rpnmrincr

artistir

spn<5i-

tivity and creativeness as well as
spjritual insight that the women
lar out.weigh the men—at least
that

when

hag

been

similar

offered both

m

experience

opportunities

are

sexes

So to sam UP>
seems to me
tbat you have many traits many
strengths, many qualities that are
need and valued m industry. You

resolved I think that you will
to get around this by having
find the going much easier. But certain jobs set aside for women

a

med up in the following example.

When women think as women
about a job, and not as individ-

industry

working

self

women.

say

the

such

fit

might

companies, geographically far
mine or
reflect this "men only"
The top level adminexecutive positions
been filled from the lower

mill sight

atmosphere.
have

arid

who have worked
bottom. Although due to changes in merchandising and servicing' operations these "hard" industries have
softened somewhat, "the word has
not got around yet" sufficiently to
open the door to a large number
of
women
This avenue or adranks

by

men

their way up'from the

in heavy industry, has

almost

stayed

historically

already

vancement

established'

entirely

closed

to

women

is often

business

Because

con-

similar to
a man's club
women find themselves unwelcome in any activity
that depends on this kind of an
environment
She can never become "one of the boys."
A woman
ducted in surroundings

doesn't fit into the

extra or more

surrounding

negotiations

social

She doesn't play

business activity

golf with customers; neither does

fishing trips with them.
these experi-

she go on
Women

not sharing

ences are

limited in the amount of

business they handle.
This

same

limitation extends to

companies who have to send representative to national sales meet-

Many organizations are not

ings

prepared to handle women
and

when one has

the

strain

and

guests,

to be included

irritations of

this

arrangement is apt to be obvious,
One executive told me, "a woman
has

to

be

awfully

good

to make

want to bother with all the
preparation that is necessary before you can send her as
a representative of your company,
With a man you just call up and

you

extra

say

Another execthat in the selling
business a woman's

he is coming."

utive remarked

ol the proper people,

This reminds me, in closing, of

The administrative set-up in these too much food. He did, however,
offices is more or less identical, own a mule, a wagon and a wife,
One of the most important depart- He lived in the little, sleepy fishments in each office is headed by ing town .of Mazatlan. One day
a woman, and the feeling among he got an order to do some haulcompany personnel is that this ing that, was going to pay him
position has been earmarked by ntore money than he knew was
management as a woman's job.; in the world, so he was very
One of these women department happy and he told his wife, Marie,
heads resigned- suddenly, giving, and they were both overwhelmed,
no reason. She was immediately They - did not sleep well that
replaced by a man. Women in night, and he got up early to be
other departments began to worry sure the mule would be watered,
—is management changing its fed and7 groomed for the task,
rnind about us? Are we on the And when- he went to the shed
way out? Is this part of a gen- where the mule was he found
eral company reorganization, or the mule had died. Of course, he
only an isolated case?
was brokenhearted and his wife
the end of the year> the —she Was brokenhearted, too.
man was replaced by a woman. But after bemoaning their fate
Again no reason was given. The the proper length of time, he reother women in the organization membered he had a cousin,
began to feel increasingly inse- Tomas, who had a mule, and it
cure, and their work reflected this seemed that this cousin had reinsecurity. They spent a large cently moved from the big, soPart of their time corresponding phisticated city of G_
to
with each other about the reasons Mazatlan. So he decided to ask
back of this situation, and in try- his cousin if he could borrow
inS to Hnd some clue to it by his mule. His cousin readily asmeans of the grapevine.
sented, but explained to him, beIn a short time the women in cause he had come from a large,
m the entire organization were sophisticated city that this mule
demoralized. Not only did their he had was most intelligent,
work suffer, but women candi- Pedro must not abuse him—he
dates for the job refused to con- understood everything you saidsider it because they were afraid he must be reasoned with and he
it was temporary.
would do anything you wanted,
The whole situation was actu- Of course, Tomas felt quite sually caused by poor communica- perior because he had come from
tion. The first woman left her the large city of G
and
3°h because she had to go to an- he had studied something about
other city to take care of some mule psychology, etc., etc. . . .
personal business. The man
Now, I like to end my talk
brought in was the most logical with this story because it seems
replacement available at the time, to me that it illustrates your probHe was in turn replacejd by a jem and what you have got to
woman, again the most logical do your have got to get the atperson available, when he was tention of the people that have
transferred to another office. I |be responsibility for the placing
believe this is the type of thing 0f WOmen in certain jobs—jobs
that causes most of the worriment
require your particular skills,

many of you are having. It isn't knowledge and abilities—before
chances were jeopardized by the a matter of standards or rules or you can get anywhere. Of course,
fact that so much business is done customs but rather a matter of yOU must. still use reasoning, you
over the
lunch table in a man's how it is done.
.
must explain, you must be kind,
club or bar.
It has been said (and I am in- etc., etc., but if you do not get
In
those
very
few instances clined to agree) that there are the boss's attention, you will suewhere they have tried to become certain significant traits, whether ceed but little.
end

of

his

the company.

All of these things

accounted

and

viding

sales in 1954 of almost $18

"automation"
to
better
services. I For
many
years

food

vending

machines

have

been

lo¬

which

candies,

of

soft
a

drinks,

etc.

Now,
important
inaugurated for
services nearer to
and

new




made

to

contributed

million

period of

same

Increased volume

share.

per

cated
in
plants throughout the
country dispensing cigarettes,

however,

for

profits in the

and

$1.17

its

impact

first

on

quarter 1955 earnings led to sales

$5.15

share

reflecting

million

per

This,
compares with $4.20 million sales
and per share earnings of 28c for
bringing food
workers
through the means of the same period of 1954. Second
these vending machines.
Here is quarter
earnings
were
equally
trend

a

has

romantic story of growth in an
where annual expenditures

area

by workers for hot meals

the

on

good at 95

bill

pects

that

first

cafeteria

into

millions of dollars annually.

management

a

service

and

irigs

personnel.

have

Advancements

office

company's

qualified
uals

policy
and

of

promoting

deserving individ¬
the
organization

within

whenever possible

and additional

approximate $2

can

With

only

managers,
super¬

business

pros¬

1955 leads to the
logical conclusion that the earn-

executives

area

same

during

stock

from

indicated

of

organization The Prophet Com¬
pany is necessarily dependent on
its
ability to secure
top level
regional supervisors, field
visory staff to executive

month»

six

the

for

period
Projecting these figures in

of 1954.

view

As

47V2C.

of

asagainst 55%0 for the

job has grown from the slim food
of

earnings

been

funded

no

indebtedness,
of

with

operations

carried

the

496,000 shares

outstanding

with

share.

a

t^rm

long

or

common

being the

and

security,
the

of

company
in facilities owned and

on

provided

by clients, the capital
requirements of the company are

limited.
holder

As

result

a

the

share¬

anticipate generous in¬
come
from
earnings.
Dividends
have been paid without interrup¬
can

specialists have been brought into

tion since 1945.

the organization from allied fields.

increased from 10c in that year so
that last year 75c per share was

This

insistence

and

specialization

on

training

rally in

has resulted natu¬
increase in the nurftber

an

of clients

the

and

of satisfaction

on

highest degree
the part of the

clients with the service rendered.

Pointing

my

up

stock

common

interest in the

of

The

Prophet

Company, the shares of which
traded

the

on

Detroit

Stock

are

Ex¬

a story that I like to tell to sales change, is the obviously recurring
uals, confusion begins. Here is a people, about a Mexican fellow appetite of the American working
case in point—a large organiza- named
Pedro, who, like most man and woman for good food
for him
he' didn't tion maintains a chain of branch Mexicans, never had much suc- properly prepared and served.
Even the offices of olfices throughout the country, cess, very little money and not Then too with the guaranteed an¬

removed from the woods,

istrative

Security I Like Best

management. Prophet has kept up
with the changing times
by pro¬

been made in accordance with the

ar(r having a-, difficult time in
of the old myths have been gaming recognition and are try-

description. Incidentally, I believe
it was Andrew Carnegie who attributed his success to the
fact
that he had better men than him-

The

examples of my experience
wpth some of these people. I have

regardless: You have got to com- exclusively, and/or certain standthese
early industries could be Pete as a man competes on your ards set up I think you shouldn t
described Derhans as "rugged in- strong points that make
a con- do this. I think you have a great
dividualists."
Leaders
such
as
tribution to the business. Actually, deal to sell. Your trouble is that
J L Hill of the railroad organizathe type of thing that causes most y°u are .not stressing your values
tion and Andrew Carnegie of the of your problems might be sum- a?d gettingto the attention
steel

Continued from page 2

them, I would prefer to give

logic of what im trying to say the loss situation. These situations
have to do with health, sickness
and accidents, and I have found

what you are after, is it as hope-

portable.

can

having value in
Rather than

as

a few

The quickly

beginning to show en- is that when you try to appear
couraging signs of wear,, but still to be what you are not,, and comkicking.
pete in that element, you are sure
It is easy to rationalize this mistp be considered somewhat out of
conception out of existence. It is character.
t
untrue. It is unfair. It is unrealNow, with all these statements
and

was,

list

of

employment.

woman

Pros and Cons oi Women in Business

that

weak,

or

thought

17

(577)

/

nual wage
some

all

paid.

The rate has been

In view of the fact that the
has

company

policy,

the

profit

a

liberal

realization

expectations

pay-out
of

1955

could

easily

lead to further dividend increases.
With

the

around

turn

stock

$14

of

per

better

result from

based

on

currently selling1
share, dividend re¬
than

5.3%

dividend

last

would

declarations

year's

rate.

I

like

this yield. I like the feeling that
it is going to be higher, and if it is

higher

I will enjoy the accom¬
panying appreciation in value.
This

already instigated with

of the Prophet clients and in

best

investment

is

bringing

which

me

I

Profit

like

frona

to follow, the Prophet.
should
continue
prospects of fewer lay¬
Everett Stiles Opens
off periods in industry. To the ex¬
tent that the company does a good
(Special to The Financial Chronicle)
job, today's customers will be to¬
ARCADIA, Calif. — Everett W.
morrow's customers day in and Stiles is
conducting a securities
day out, shift after shift. It is business from offices at 601 South

probability

more

earnings

good

with

the

small

wonder

then

the

that

ex¬

perience gained by this company
by more than 35 years devoted
to the feeding problems of indus¬

First

With Hannaford Talbot

-

try, institutions and the public is
the

(Special to The Financial Chronicle)

SAN FRANCISCO, Calif.—John.

specialized experience which

I want to

through

buy and hold indirectly

my

purchase of stock in

This advertisement is not,

and is under

buy

any

Talbot is

P.

now

with

Hannaford
1

& Talbot, 519

no

offering of these securities for sale

an

Avenue.

California Street.

circumstances to he construed as
or

a

solicitation of

an

offer to

of such securities. The offering is made only by the Prospectus.

742,000 Shares

Livingston Oil
Common Stock

Price $2.75 per

Copies of the Prospectus

may

in those States in which the

ties in

share

be obtained from the undersigned only

undersigned

may

legally offer these securi¬

compliance with the securities laws of the respective States.

Van

Alstyne, Noel & Co.

Goodbody & Co.
August 8, 1955

H. Hentz & Co.

(573)

18

The Commercial and Financial Chronicle... Thursday, August 11, 1955

,.

of

form

of that

dividend

stock

a

Albert N. Gray retired as Assist-

ant

$42°,00°.

Pennsylvania Company for Bankln6

of

Bank

National

First

The

*

The

and Trusts. He began his busicareer

ness

rency

in 1915 with the Peo-

"°?Pr£

T

Rvrnn

J.

Byron

onn

appointment of

Uhe

tchmfd asInAs- Sfn

A

ininpd The Countv Trust

Hurrinf

*y.

3°'ne°

hJ

th^Croton

charge of

°f nGW Sl°ck'

of-

J.,

*

»

sale

the

from

resulting

$125,000

*

*

*

*

issuance of

charter

a

Bank of Jacksonville, Fla. with a
capital of $200,000 and surplus of
$208,419.

The

bank

represents

Flan^an, President Mr. Moger is a direct

The First National

in of the Central Savings Bank of

Bank

Jacksonville.

at

The

A stock dividend of $200,000 has of June 30 of $480,000, increased President is E. G.Breedlove, and

.

Miami

and

joined
the
State
Trust Company which

Schmidt

Mr.

and

Bank

MnnnioJnrprc

■

....

merged with

the County Center office

Bepartment
Main Office.

re-

„

Ferry, N. Y.,

County

f

ah

banker

home

He

65 years old. For 28 years

was

of White

Trust Company

Col.
q. Brown, President of

Franklin

Bank,

Ferrv

Dobbs

<ue

drew wi)son

1^47follow- 6.5

that cUvin

year

»!?stit"-

,old °?b,bs

a

was

,

'
'

Chapter of the

York

New

the

University Alumni Asso-

Furman

ciation.
of

As

*

*

25,

the

*

~

■

,

July

•

Meadow

of Freeport,

Brook National Bank

increased its
capital from $5,671,454 to $5,784,880, by a stock dividend of $113,N.

Island,

Long

Y.,

426.
,.

Banking

June 20 approved
of the Bank of
Brookhaven,
at
Port

Department
the

Stafe

York

New

The

on

application

Northern

Jefferson, Long Island, N.

Y., for

certificate authorizing the bank

its capital stock from

increase

to

consisting of 20,000
$20
per
share, to
$412,500 in 20,625 shares of the
same par value.

$400,000
shares,

par

*

*

Under date of June 30 the capi-

Riverhead,

of

Long

Island,

!N.Y., became $300,000, increased
from $150,000 by a

stock dividend

of $150,000.
*

*

Kieran J.

Tarrytown have been elected AsTreasurers of The County

sistant

N.

Y.

Company

Plains,

White

of

Duffy is in charge of
company's Ossining of-

Mr.

the trust

Harring and Ml
positions in
the Croton
and
County Center,
White Plains, offices.
Mr. Duffy
has been with The County Trust
fice, while Mr.

Schall

since

1946

aged

the

office

similar

hold

in

Duffy is

a

Chamber

and

previously

South
Mount

Fulton

liabilities

the Little Falls National Bank.

o1

..

..

A,+

te"nlated th^t

..

.

The holder of

dividend.

$100

ent

receive

compared with $250,000 previous-

ly.
nno

Of the enlarged capital $150,rpnrPspntpH a
dividend

while

stock.

share

five

shares

new

new

these
First

An increase in the capital of

of the work July 1,
1956
Bucks County Bank and
Trust Co. represents a recent consolidation
of Quakertown
Trust

jn

^be

2089.

Assistant

Vice-President

$350 000.

'
*
*
The Citizens &

*

Southern Na-

tional Bank of Atlanta, Ga., which
ciaims to be Georgia's largest
bank, will open an office in New

York'

City

announced
hv

in Atlanta

PrpsiHpnt

1

it was

on

Aug. 8,

Jan.

around
TVlills;

R

Tr

T anp

tL Xe

of the

This

cated book value of $60 a share.
The bank is planning to enlarge
its South Yarmouth Office this
fall and to improve its facilities.
The First National Bank is a direct successor of the Barnstable
Bank which commenced business
1825 and received a National
charter and its present name on
May 10, 1864. The bank has paid
dividends continuously for 130
years.

-

mens

Haven,
of

July

National

Conn.,

$35,000

to

21

the

Bank

made

its

sociated

Mr. Barwig became as-

with

the

bank

in

1928,

appointed Assistant Trust Officer in 1934 and Trust Officer in
was

\

1946.

'

*

*

*

Promotions of three executives,
election of three new officers and

retirement

one

jn

July

by

were

The

announced

Pennsylvania

company for Banking and Trusts

Philadelphia, Pa.
James F.
Bodine, Ralph M. Henry and Nor-

0f

raan FRussell, Jr., were advanced from Assistant Treasurer

....

*
Effective

President.

TradesNew

of

an

capital

addition

in

the

to

Assistant

Thomas

W.

Vice-President.

Snedeker, George A.

Butler and Bruno A. Grentz, Jr.,
were

f
?vS ^
*rJ5!!n
1? ?- 2,.
was Director of the
a Training Program.

*
*
*
The Bank of California at San
Francisco added its eighth office
on Aug. 1 with Bank of Berkeley
joining The Bank, of California

system. The merger, for which
negotiations were announced July
bas been approved by the direc*°rs and stockholders of both
banks and by supervisory authorities. Richard E. Johnston, for—

will be a'"new and
needed financial link" between financial
capital
of the United
States and the expanding markets

™rly President of Bank of Berkeley> has been elected Vice-President of The Bank of California
and Manager of the Berkeley Of-

0f the Southeast, Mr. Lane said.

flce- Walter D- Harrison of the

Executive
Vice-President in Atlanta and a
key officer of the bank will head
F.

Robert

up

Adamson

the New York

ooer'ation

dur-

...

!"

c

,,

,

.

Berkeley staff was also named a
Yice-President. All employees of
Bank of Berkeley have been retaiped, and will participate in
The Bank of California's retiremeni plan' group insurance> and
other employee b^npfit^
The
merger brings the re-

sources of the Bank of California

R

*s

s^-a^ed

*°

approximately
i«Fllintt Mr®

Bank of California is Elliott Mc-

boutn ootn irom market- Allister. Executive Vice-President is Edwin E. Adams.

lng and Production standpoints,

*

The Citizens & Southern National

capital funds of $360,000 Tradesmens Bank and Trust Com- Bank has $25,000,000 in capital
consisting of $150,000 capital,
of Philadelphia, Pa., it is and oUrninc iarge<d it i* said of
$150,000 surplus and approximate- announced by James M. Large,
0
..
; g
,
®
total

will give the new stock an indi-

1951. will

(take.ovf'' the Post left vacant by
the death ot Arnold Tschudy last
jprmg. Mr. Tschudy died on
March 12, and his dealth was referred to in our March 17 issue

the enlarged bank had a capital
stock of .$3,250,000, in 130,000
shares of common stock, par $25
each, surplus of $2,900,000 and
undivided profits of not less than

.

Department

Trust

Mr.

]e?ve *or ^ew York shortly to

York have expanding investments

*

Barwig has been ap-

William H

Beise.

Corpo^tionandBank fSS
Re

Co. of Quakertown, Pa.;

|

Clark

p?ge*285- A fatlve of California,
Mr. Richards began his banking
Under the charter and title of career
Orient where he
the Liberty National Bank & was affiliated with the Chinese
Trust Company of Louisville, Ky., fQ^rJcai}Q^anI5 in ^a"lIa. fron?
with common stock of $2,500,000
9. to,1?23, .In 1923 he lplned
that institution and the United .
America as an exchange
states Trust Company of Louisjr a
subsequently ^ was
ville, with common stock of ™!™Ln "rL"'
$500,000, were consolidated at the can pranhicr.n i °!qJ51 k
m
close of business July 22. At the ^a A 5. ^ , ®". In_|937 he be^arPe
effective date of the consolidation
Assistant Vice-President at the

completion

pointed

S.

Rithards- who has been with the
3 Vice-Preside"<

*

shares presently held. After
funds are available the
National Bank will have

.

£ame<* a^ the bank s New York
Representative, it is announced by

President

.

May 5 issue, page

for

presently

_

*rancJsco headquarters, has been

*

*

each

$50

at
are

.

_

*

held.

In

additional

of

amount

available the

five

of

total

a

further

the

First Na- j^g its first year He will be astional Bank of Perkasie; Perkasie sisted
bv
another
Citizens
&
Trust Co., and Dublin National Southern officer and other nerBank, of Dublin, Pa.
connel to be named later AccordAn item with respect to the ing to Mr Lane more arrd
consolidation
appeared in our
centered around New

thereby
new
$25

addition holders
are being issued warrants to purchase on or before Aug. 12 one

director of the Ossining
Mr.

*
*
*
Alterations and additions for
^he former First National
pank 0j Perkasie, Pa. to house
tbe new]y formed Bucks County
Bank aAd Trust Co. were begun
juiy
Howell Lewis Shay and
Associates, Philadelphia architeets and engineers, announced.
The existing structure at 7th and
Chestnut Streets, will get a sec>ond floor; a 30 by 58 ft. addition
sheathed in brick and cast stone;
a bigger vault; central air conditioning, and other facilities.

...

^

$100,000 resulted from the rale of

Bank & Trust

nounced. The Little Falls National
Rank, with total -resources of
approximately $12 million was established in 1907. An increase in
the capital of the Little Falls National to $260,000 was referred to
in °Ur isSUG °f August 4' page 481,

one pres-

will

share

par

shares.

par

of

Commerce.

The County

C dividend
of $50,000.
~
'

.

Company, established in 1869, at the First National Bank & Trust
tbe present time has total re- Co. of Lexington, Ky. from $1,S0Urces of approximately $96,000,- 000,000 to $1,250,000 was made ef000 and five offices in Paterson fective July 1, the capital having
and Passaic< Recently plans for been thus enlarged as a result of
the establishment of a new South- a stock dividend of $250,000.
sjde office in Paterson were an*
*

approval July 20 to split the
present outstanding stock four to
one and to declare a 25%
stock

man-

Mr.

office

cfork HividpnH of^nnnn

V.ern ^ R^hards, Vice-Presiof July den*
2 j
Americas San

Company of Fargo, N. D., as a re-

directors of the

LiWe^alif NatfonalBankwiB

voted

Avenue

Vernon.




the

,

ly $60,000 undivided profits.

*

Duffy, Jr. of Ossining,

Irving G. Harring, J^ of Croton,
and
Kirby J.
Schall of North

Trust

the

assume

a

Merchants National Bank & Trust

board in Dobbs Ferry. On - June.*
30, 1955, the Dobbs Ferry Bank
reported total assets of $3,459,209
and deposits of $3,111,936. The
County Trust Company, on the
Business
transactions will be
same date,
showed total assets oarripd on without interruotion
of-$323,370,550 and deposits of throughout the construction pe$297,453,536.
riod> bank President Daniel Erd*#. *
*
man
said,
John j. Brennan, of
Shareholders of The First NaLanghorne, Pa., the general contionl Bank of Yarmouth, 'Mass., tractor, said his schedule calls for

Alter these funds

*

tal of the Suffolk County National
Bank

and

assets

chairman of County

over

a

be held shortly to act on

An-

and

tlon' a~d officials of The County
Bankj^e^had joined Cenfral Trust Company which calls for
llninn
Tri^t Comoanv of New consolidation under The County
Yr»rk
Hanover nTedccessor bank
Trust Company name and charter
-iQiq
He
elected a Vice- and an exchange °f 2% shares of
Prpsirfpnt
in
1925
and
became County Trust stock for each of
head of the bank's Southern DiviFerry
s 10.000
sion in 1938
shares. The agreement is subject
He was past Treasurer, a board J° aPProval by State and Federal
.member
and
Chairman
of the £a"klng /u Jl°u
»S ^
°C
Ijosiah
Macy Jr. Foundation, a holders ot both banks. Upon comnhilanthrooic
organization
for Ple^lon
proposed merger,
medical research A former Presi- ^r^RaX?k^Wn° kkS
ldhnnt
dent of the Uptown Bankers Asso- *ied
Dobbs
bar{k
ciation in New York, Mr. Allen for about 55 years, will remain
had been Treasurer and Finance in charge of the Dobbs Ferry ofCommittee Chairman of the New j^ce
as Vice-President of The
York
Post-Graduate "M e d i c a 1 County Trust Company. Col. John
School and Hospital.
Eugene Baker, George P. Booth,
.A graduate of Furrnan Univer- William RioJo, Ihornton H. becor,
sity in 1909, he received an M. A. Herbert J. Spnngsteel, and f)rankdegree
there
in 1914 and
an lin Q. Brown, Jr., currently dihonorary LL. D. in 1937. For a rectors of the Dobbs Ferry Bank,
^number of years he was Chairman will comprise County Trust's local
*of

will

by

5

Aug.

retirement from the Han-

his

Falls

Bank

LittJe

Vice-President and Cashier of the

inff

National

the

7nnw
have. aPPr0Yed » 1become members of the Advisory new
(now ™nt
"signed by David Ravekes, CommTttee of the Little Fails

York
York

tlT&

.hi°rnnednt^

„

,

^

^nt^f the Central" HanoveMJank I'USt DkeCT °f b°th T"8
ien^tthLCe„,trNew
A Trust Co. Of New

*

*

have announced plans to consoli- effective June 30 from $1,500,000 ?iona, Bank in Austin Texa§ wag
date operations ot the two banks o $ , , ^ ^ ^
increased effective July 15 from
£Uri
approv?
An
additinn
of
non
hac $1>500,000 to SI,550,000 as a result

will merge with The

released

ment

Greenville, b. L.

in

...

Plains, N. Y., perhaps within six proposal. Under the plan, the suit of which the bank, as
weeks, according to a joint state- County Bank will purchase the 26, reported a capital of $500,000

New York, died on Aug.

in

7 at his

i

formerly a

*

ported by the First National Bank
of Dothan, Ala. as of July 7, the
TSAfSSK.

^

^

„

.

a

Robert Emmet Allen,

«

«

*

toi $400,000 The enlarged capital $240,000.
became effective July 7.
_

holders and supervisory authonAn addition of $250,000 has nf
The Dobbs Ferry Bank of Dobbs ties. a stockholders meeting of been made to the capital of the

Tr-nci

^

,

.

_

in Janu-

of this year.

ary

Manufacturers Trust
He is assigned to the

1929

in

Chamber

of

1922

In

Texas.

and

Oklahoma

the

to

came

^oton

of

Commerce.
Employed with
Trust The County Trust Company since
of

University

the

of

a

conversion to the national system

*

was

graduate

as

of July 1 for the Central National

Sharon, Pa., reports a capita) as Florida

*

the

of

Comptroller of the Curat Washington. D. C
re-

ports the

reports a pies Bank and Trust Company of
capital of $575,000 as of July 19, Philadelphia. He is succeeded as
increased from $350,000, both by a head of the Wire Transfer Departstock
dividend
of $100,000
and ment by Mr. Grentz.
N.

Park,

Highland

Operations

and

Wire Transfer Department of The

'

"*

agement

of the American Bankers Association,

head

Treasurer and

amount, the capital having thereby
been
increased from $385,000 lo

*

*

A new branch in Paris, France

has been authorized by the Federal Reserve Board for Bank of
any Southeastern bank. With America (International), wholly
$384,000,000 in deposits, it claims owned subsidiary of Bank of

America, of San Francisco, it
was announced in San Francisco
*
cn Aug. 2 by Russell G. Smith,
offices and Georgia affiliate banks Executive Vice-President in
are $461,000,000 with capital funds charge of International Banking

to rank fifty-seventh in the
tion

of

na-

Combined deposits of it*

over

banking

$35,000,000.
and

civic
♦

r>

Active
affairs,
4.

22

in activities for the parent bank, in
Mr.

*

addition,

il„

Mr.

Smith
m

stated,
^

the
.

Adamson 1S past President of the United States Treasury DepartAtlanta conference of the National ment has directed Bank of Amer-

Association of Bank Auditors and jca (International) to open two
Comptrollers, former Secretary offices in France for the conand member of the

operating

com-

venience
A,v

and service of units of
lUm

mitt^ of the Aflanta Clearing the Air Force stationed there.
House Association, and member of These two offices will be located
Committee on Savings Man- at Dreux and Evereux in Nor-

elected Assistant Treasurers, the

Number 5454

Volume 182

northwest

and

west

njiles

60

approximately

mandy,

The Commercial and Financial Chronicle

...

Paris.

of

ent

and

branch

a

15 Mr. Smith said.
(International)
Corporation, was or¬

America

of

Bank

offices approxi¬

two

Oct.

mately

the

opening

for

call

plans

New York

Posf Office Square,
representatives

Joins

Hayden, Stone

9

at

Madeline. Pres¬

la

de

Boulevard

located

be

will

branch

ton office of Hayden, Stone at 10

E. M. Newton & Co.

They will operate as agencies of
the new Paris branch. The Paris

has

been

that

Edwin

admitted

Carleton

was

engage in senior partner of E. M. Newton &
activities.
Company.
In 1953 it opened its first branch
Ten
other
associates
of
the
in Dusseldorf in Germany's
in¬
Newton firm have joined the Bos¬
dustrial Ruhr Valley.

London

of

have

elected

been

of the

the board

American Natural

offering

to

stock¬

to

price

is

$35,737,516.

joint managers of
of

179

at

group

competitive

bidding

10.6

share.

cents

a

Proceeds
new

from

plied

the

to

securities
tion

Pipe

ana

in

the

the

sale

of

this

be

ap¬

of

proceeds

of

Co.,

raised

so

construction

of

natu¬

carry

from the Louisiana Gulf
Goast to Michigan. The American
Louisiana Pipe Line Co. also pro¬
to raise an additional $97,500,000 from the issuance of first

pipe line

stitutional

ditional

bonds

investors

$12,000,000
The

sources.

ad¬

an

from

estimated

pipe line

in¬

to

and

other

cost

sales

of

the entire American

Natural

tem

expenditures

sys¬

during the remainder of 1955 and
1956

are

expected

to

be

$190,-

000,000.
The
is

American Natural

Gas Co.

registered public utility hold¬

a

ing

Its utility subsidi¬
an integrated nat¬
ural gas system, comprising dis¬
tribution properties in Michigan
and Wisconsin and pipe line fa¬
cilities serving these properties as
aries constitute

other

certain

as

markets.

Since the demand in market

served

by the

American

areas

of natural gas, the
through its subsidiary,

supply

company,

American Louisiana, is construct¬

the new 30-inch natural gas
pipe line system from the Louisi¬
ana
Gulf Coast to Michigan.
ing

the

For

12

conditioners in homes

1955,

the

company

945,075

and

revenues

amounted to
net

income

$119,-

to

room

$12,-

new

common

will

consist

stock, capitalization
of

$257,358,000

in

long- and short-term debt, 30,301
of

A terrific increase in demand! Main¬

non-callable

6%

I

growing industries,
and what steel does for it. . .

you,

made

by manufacturers, and the pub¬

lic's realization of the many

offered

Furniture makers

finishes before

And

it to reduce

use

there

manu¬

it for cleanliness.

on

are

high

on

drying, and drug

many,

other

many

applications in laboratory,

mill and

factory.

Importance of steel

fc*

benefits

air conditioning

many,

cool

brow,

dry shirt,

a

hot, humid

a

means

and does much

a

and

If you

an

theater,

It cleans

It ventilates.

office, factory,

conditioning

air

or

refreshing air all around

the

time.

Consequently,

you're

weariness.

without

efficiently

more

you,

work longer and

comfortable,

it keeps fumes and dust

At home,

out. This means less

example, the handsome

air

flat-rolled steel

special steels such

you're

a

And if you

train,

hay fever sufferer,

take

to

more

hours

an

you

air conditioned

automobile,

comfortable,
on

hold

and

from

or

National Steel's

enamel

Ducts for centralized air

installations

also

are

paint

or

steel sheets

flat-rolled

conditioning

fabricated from
or

from

long-

lasting galvanized steel like National's
Weirkote.
cial

Movable

wear-resisting

parts require spe¬

steels

structural members

are

.

.

.

and

formed from

high-strength steel sheets and strip.
What about the future?

By 1960, half of all
United States

ride

or

sheets

of

shaped

dusting, washing,

get greater relief.

bus,

as

cases

are

indefinitely.

reupholstering. You sleep better, too,
and if

conditioning units

Weirzin—and Weirzin Paint-Rite, an

store,

all

conditioning.

electrolytic zinc-coated steel designed

means

more

air

temper

more.

temperature.

work in

part of

a

day. But it

and circulates the air. It controls mois¬
ture

important

an

nearly everything having to do with

from
means

an even

summer

conditioning

For it is steel that is

room

IIow it benefits you

on

gain metal—has played
role.

For

~

#

To

In the growth of the air

by air conditioning.
-

less

feel

you

after

tired,

the road.

industry

new

homes in the

expected to have air
years

air condi¬

tioning is expected to be used in
fourth of all
office

And how it benefits

are

conditioning. In five

more

new

one-

automobiles, buses,

buildings, and most hospitals.

To

this

meet

increasing demand,

and better steels will be needed.
ft*

More than 200 different industries

use

At

National Steel,

our

research and
SEVEN

air

conditioning for almost

Textile

as

many

production

men

will continue to work

need

it

humidity to

to

pro¬

the better
It is

products of the future.

our

constant

goal to produce

shape of vegetable

and animal fibres. In flour

mills, it

pre¬

stickiness, and it greatly reduces

better and better steel of the

quality

in the quantity wanted,

at the

and

lowest

possible cost to

our

Lake* Steel Corporal ion

Steel Company
The

Hanna

•

in

offer

underwriting

the

are:

Allen

&

Alex. Brown & Sons; R. S.
son

& Co., Inc.;

man n

Co.;

Ladenburg, Thai-

& Co.; R. W.

Salomon

Co.;

Dick¬

Furnace

Company

•

Bros.

Pressprich &

&

and Deari Witter & Co.




Hutzler,

GRANT BUILDING

VKV

PITTSBURGH, PA.

Weirlon

Corp.

•

National

National Mine* Corporation

customers.

CORPORATION

NATIONAL STEEL

•

Stran-Steel CorfM>ration

Steel Product* Company • llanna Iron Ore

132 shares of common stock.

Associated

DIVISIONS

STEEL-MAKING STRUCTURE
Great

•

tect the size and

GREAT

WELDED INTO ONE COMPLETE

closely with all manufacturers to make
manufacturers

maintain sufficient

pre¬

4,421,-

ferred stock, par S25, and

•

damage from dust settling

with Cali¬

3924

industry, steel—America's great bar¬
many

design and engineering improvements

vents

the

now

air

reasons.

Giving effect to the sale of the

of

are

Boulevard.

of America's fastest

one

throughout the

ly responsible have been the

of

596,804.

shares

Stein

Investors,

United States in 1946.

fnonths ended June

operating

30,

year,

conditioners—for

air

room

compared with only 15,000

as

Natural

system greatly exceeds the avail¬
able

Bryant,

facturers count

changed. Last

company.

well

nobody

homes alone—hit the 1,125,000 mark,

of

is $130,000,000. For

construction

hut

anything about it."

poses

mortgage

about

talks

weather,

But times have

30-inch

a

gas

the

E.

fornia

Springs under the name of
Corporate Trust Company, Inc.

spoilage throughout the food industry.
;

por¬

subsidiary,

a

does

equity
A

by American Louisi¬

Line

the

the

bid

a

will

pipe line which will
ral

that

of

subsidiaries.

the

of

will be used

on

purchase

of

"Everybody

unsub¬

1955.

stock

common

is

Mark Twain's old

years,

are

The
underwriting at
23,

the

won

shares

expiration

Aug.

conditioning

saying made sense;

nation-wide

a

any

the

on

or

WhiteCo.

underwriters

purchase

offer

Carl

Here is what it does for

The total offer¬

Weld & Co. and Drexel &

scribed

Carl V.

Cedar

the basis

on

share for each five

new

group

Brooks,

stock

common

gjtiare,

per

shares then held.

will

Air

Aug. 9, 1955,
subscribe for 736,856

atJ>48.50

ing

Clark

G.

are:

H.
Baker,
Fred
E.
Henry E. Schimberg and

People Are Doing
Something About the Weather

on

shares of additional

ofjone

Moore,

More and More

Gas Co.

common

holders of record

rights

Chester

DALLAS,
Texas — J.
Eppler
Nehaffey is engaging in a securi¬

mem¬

bank.

Common Stock Offered
The

Calif. Investors Add
(Special to The Financial Chronicle)

Corporate Trust Co. Opens

associates

Stone

Hayden,

Co., 140 South Beverly-Drive*

an¬

American Natural Gas

is

Newton

M.

&

30 years.

ties hjusiness from offices at 2501

joining

Calif.^-Wil¬

liam. R. Stow, Jr., has been*aeMed
to the staff of Daniel D. Weston

July 19 that D. V.
and J. F. Prideaux,

Phelps, J.P.
bers of

E.

in

1931, Mr. Newton has been in the
investment business for more than

municipal securities.

Other

firm

own

about

nounced

O.BJE.

H.

BEVERLY HILLS,

his

of

Westminster

of

Limited

Bank

in

Joins Daniel Weston

Stockemer.v
Founder

19

(Special to The Financial Chronicle) '

$

*

*

directors

The

Woll

banking

International

of the invest¬

Simmons, general
Newton firm, be¬
England manager of
the investment department. Philip
F. Kenney will specialize in cor¬
porate securities, and Albert J. T.

to

1950

in

ganized

and

new

New

comes

limited

a

as

F.
Burr,
James
H.
Newton P. Darling, H.
Wadsworth Hight and George A.

Cleaves,

partner in the

M. Newton

partner. Mr. Newton formerly

Wilfred

registered

as

the

in

enlarged quarters
ment department.

BOSTON, Mass.—Hayden, Stone
& Co., members of principal se¬
curity and commodity exchanges,
announce

(579)

Wilshire

Financial Chronicle... Thursday, August 11, 1955

The Commercial and

(580)

20

New Plan for
I

York.

head office in New

welcomed by f orBearer Depositary
eventually be dealt

Trust Company of pany should be
York reports it is initiating eign investors.

Guaranty
New

mitted

Depositary Receipts. Guar¬
the originator nearly 30

Bearer

stock exchanges
the securities ad¬
listing are in bearer

to

in foreign securities in the
York market through the
medium of American Depositary

Rew

is

the

In effect the new plan
of the American

reverse

Depositary Receipt system. The
actual American securities will be
held at Guaranty's head office in
Dew York and the Bearer Depos¬

issued

be

will

Receipts

itary

abroad.

provides a mechanism
which foreign j investors
may
trade in the securities of
American
companies in a form
The plan

through

adapted to their needs, usages and
The underlying Ameri¬
securities will remain on de-

customs.
can

in

them

will

The contest

the

De¬ road^Company, and United States
positary
Receipts. Investors in Steel Corporation. It is antici¬
many
foreign
countries prefer pated that shares of other Ameritheir security holdings to be in can
companies will be included
bearer form and thus it is be¬
later in the list as demand from
lieved the newly created Bearer
Receipts of Guaranty Trust Com- foreign investors may require.
Bearer

issued

be

Continued from

between free¬

check the rising tide

months
in

that

direction

when

the

under way
than would be the case if things
are
allowed to blow the top oif
now and be in recessionary phase

will

1955

outlook,

the

on

summary

be

the other of these two cate¬

year's dividends

industrials

going

are

typical
be up

on

to

rather
some

of

sharply from last year—up
12% to 15%. The current rate

capitalization is

on a

yield basis

Business

just under 4%.
As to next year's
dividends, my present estimate
calls tor a continuation of the up¬

banner

trend. Many companies have beeh

1956.

in the fall of

public finance.
and credit, which in¬

a

year,

andou
or
A compiicatand 31/2%
in 1946.
taxes ing factor now is the matter of
spurred the confidence of higher income taxes than in those
investors so greatly in 1954.
earlier years.
In comparison with
of

reduction

the

taxes

(2) Money

oh

requirements

margin

so

supports and subsi¬

encouragement to

General

worries

have

government would
when to act, or would

that the

know

not

big

really

The

You see, a very

act too late.

that

noted

be

prices of industrials

average

which are the

stand at
an all-time
high in terms of dol¬
lars.
Using Standard & Poor's
daily index of 50 Industrials they
are some 80% above the 1929 peak.
That
comparison
doesn't mean
backbone,

market's

been

ex¬

should

first it

stock market,

to the

As

works,

Price

yields, stocks are no longer
widely favored on an income
basis as they were some months
bond

Market

The Stock

expenditures.

(3) Defense

earlier

were

This

elimination of excess profits

(6)

in

one or

position

different

of

puiling and pushing in op¬
posite directions can be placed in
gories.

or

will

dividend.

forces

10

stronger

In

of the thousands

All

(2) the

market

the

which

choose to capitalize that

election campaign gets

industry.

fears

at

actual

which

cludes

Stock Market Outlook
worries, from

year's dividend and

rate

stocks.

Grounds for Favorable
lng relief from war

next

might place the economy

out or some
within the next 8

letdown

dies.

that their

of business?"

flattening

A

(1) Taxation and

(5)

agree

The

big question is, "Will Washington
dare to take
any steps
soon to

totalitarianism is largely

(4) Public

to

naturally

will

power

keep prosperity here.

want to

three

election year, and the

an

in

party

was

first page

seem

is

year

barring a new war. As to paying out only about half of their
1956, the outlook is not so clear, earnings. They are in very strong
yet several visible factors are very financial position and could in¬
favorable, sucn as tax reduction, crease dividend rates even if earn¬
a
large national highway pro¬ ings should stand still or if they
gram,
continued large expendi¬ should dip a little, instead of rise.
tures for plant and equipment by
Forecasting the rate of capitali¬
industry and probably new prog¬ zation next year is a much more
ress by the Free World.
Of these difficult job. Historically, a divi¬
forces, tax reduction is perhaps dend return of 4% or just under
which the Washington authorities
the most important in its direct is not especially attractive. It concan pull control levers.
The prin¬
effect on public psychology
It trasts with a yield of 3>/4% in 1929
cipal ones are:

against /New Jersey), Union Pacific Rail-

and

York

New

posit

(1)

stock.
The formula is over¬
simplified to emphasize the nature

any

boom from

request of investors and
brokers abroad, Guaranty Trust
life, our own and communism.
Company of New York in the be¬
(2) The American people must
ginning will issue Bearer Depos¬
never again suffer the human and
itary Receipts abroad against the
material wastes of needless idle¬
deposit in New York of the shares
ness of men and machines.
of the following companies: Alu¬
(3) The rest of the free world
minum
Company
of
America,
American Telephone & Telegraph depends upon trade with us to
such
an
extent that any slump
Company,
Consolidated
Edison
Company of New York, Inc., Con¬ here would have serious results
solidated Natural Gas Company, abroad and that would interact on
E.
I.
du
Pont
de Nemours & our own economy.
Few observers doubt the enor¬
Company, Eastman Kodak Com¬
pany, General Electric Company, mous powers available to the Fed¬
The
Goodyear
Tire & Rubber eral government in its attempts
Company, International Harvester to direct or influence the speed
Company, Kennecott Copper Cor¬ and direction of the economic ma¬
poration, Standard Oil Company chine. There are many fields in
At

ing

Receipts.

propositions:

are

value of

the future

determining

present, the problem facing:. 0f our problem.
All we need to
is how to check the know about a stock in order to
overdoing itself. Next foresee its price next year is (1)

At

a

trad¬

of the system for

views

these

earnings that are paid to him as
dividends.
Here is a formula for

Washington

competition between the effi¬
ciency of two opposing systems of

anty was

years ago

standard forms of savings.

productive process.

basic

dom and

form.

to

that

Behind

most of

where

said to

are

points in the

Receipts may
in
on
foreign

whereby foreign investors may hold, shares of Ameri¬
can
companies in the form of
plan

new

a

Burns,

conviction

be held at its

for American securities to

Depositary Receipts

share the
prevent
a
severe
depression in the United
States
is more
important than
anything else. They believe the
government must stand ready to
intervene at any time, at decisive

F.

York will issue abroad Bearer

Company of New

Guaranty Trust

Co.'s

Foreign Investors in U. S.

accompanying
individual
workers through
the erosion of
the value of money and of all
by

suffered

losses

adviser, Dr. Arthur

the

outweigh

far

his

and

Eisenhower

President

chief economic

large

now

or

Moreover, interest
rising slowly and seem

ago.

years

rates

are

bound

gradually extend

to

their

rise.
Of
more

great importance, also, is the
favorable underlying growth
of

trend

Over

economy.

our

a

] /£
7 0(JS
^,ov^t
ioere-h&tl been abquh2/o per year.
manufacturing industries. Many,
5Q-econormsjs beheVe the ^ue figiire
ls n0w nearly 3%. That means
that former concepts of-.normal
theygrowth both in' business and an
taw- rttidrfpndi arp vaine the stock market must be revised
stocks are

much, however, because

profits
taxes, and from
element in this picture is psy- now much better than they
governmental interference aggerated.
chology, which means just human in 1929. as to both earning-power
Sentiment has been improved
with free enterprise.
nature.
If a slump i^ allowed to and cash dividends. - For these
uuxicin
The
current
upswing
upswing
in the
in
wic
Dy
ine
by
the settlement oi
of tne
the autpautq- ffpwijoine it gathers momentum .
leaders this vear's earnstock market has been under way mobile wage demands witfcotft the
andthen, rigs'per share are going to be

excess

other

ltJRself

f*

almostt

two^ years, Or since Sep- Erupting
stnke.
The
1953.
To illustrate the strike.
The

tember,

contrariness of the market,

it had

been

buildinte

it
the

Again, although the market began
its
upturn in
September, 1953,
business proceeded to swing lower
for just a year.
In that 12 months'

ing

do

movement?

trary
that

all

stocks
of

an

sion.

about

Well, I think
explain,
decline in
forecast

accurate

an

was

reflected the grow¬

ing confidence of investors in the
ability of the Washington Admin¬
istration
from

to

keep

the

recession

degenerating into a depres¬

the market
in forecasting what would happen
in business last year and in 1955
is now a matter of history.
The
sion.

The accuracy of

monetary managers were able

not

business index
the con¬
businessmen that the
the

turn

to

only

of

index

of

moved

the

into

post-war period.

Business

in

this

country

the

stepped

predicts that 1955 will top

other

.

...

ahead

£rials

tu.t

proceed, in

would-like, to em-

more

in

/widespread than at any

the

Earlier

postwar recovery.

this

too

building
strong to

con¬

-t

bright.
In

a

nrAA

basis

serjousjy

.g

pprsued;'

us,.'Pres^n^*ley^ 'P^ stock.
-v Qn
subject of cycles, some
-Andrecall; that. for oyer -2(> years^thq 0f. the strongest stock -groups in

want

I

ness.

segments of'-the» economy,
will especially national-income,, wages,
be
and 'and bank deposits. This - catching
business leaders to minirfiize the up" process has been accelerated
depth of any business slumps and in the last year or two by a reto iron out some of the. kinks in -surgence of public confidence.,the
the business cycle. This will be a -result of, governmental
policies
great
accomplishment,:, if per- and improved prospects for world

be

gauging the outlook for busi¬
that

stress

to

new

and

steel

building,

rather

wide swings.
'J'hey
dominant in de¬

ness

trend of the busi¬

cycle.

victimized

by

that

there

can't

be

because

depression

a

we

business

have

a

That law
is the Employment Act of 1946.
That act of Congress pledges the
law

against it.

resources

of

the nation

to

adopts

a

by competent

observers.

majority

employment and a steady rise in
the standard of living..

slide-off in business, and

national

policy

of full

are shaking off
their former feast or famine reputation, .especially <the steels and
the buildinir stocks
L

Old 'Man *De-... other

Quality.-. They

A gigantic, attempt
made by the governirtenf

pression.

formed.
to

Anyhow, the

end seems

justify the means.
For my

In current forecasts




on

ous

a

now

1929..
w* • •
,
•„ ,
.
. -,
,,
,
:
'.mgton<does
will
be watched
care,

sell

c

combat

But the

,

program-will, tajke

{his

wjiere

last.
That feeling is not entirely absent
was

to

a

over

entire

struction

f.

v!* JSUZ apparently it wilt.» be*'political c stock jmarkqt.rlagged ;way ibehipd- the past year or so have been the
nfrS 111 in Hi suicide for any party which does 111
economic and ■ inflation pa-^former ' cyclical groups, v such as
III"w
T£e upsur|e.oXov^
the years the outlook for «°t succeed in preveriting,a serir" .rade,.
depression.
The ; plain; fact, in the past two years .thus cgn, bq, an(j Qenerai Motors. "-As a result
consumers' incomes and their de- whether we like it or not, is that; looked.upon as merely an-attempt ;0£. jthe .government's success in its
mand for shelter, food, clothing the people have rebelled against oft the pdrt of the .market, to QutchpQijCy of full employment these
and the luxuries, of life is very the idea that we must periodically
up.
Even h°w it .is^behin/i,m.QSt s^'ocj^sv
gaining in investment

automobiles

and

■

,

stocks

For

vpa re

Federal

many

f

•

•
*

straight line. There will probably
be largei increases in some years
than in others. And, under condi-

of us
thought that the boom in certain
large
industries
such
as
steel,
year,

high; r-Thdiis.-.-j
selling at only 13;

now

are

at the peak of prices in

t

part, I believe the
The
business
cycle itself has means that will be used spell in¬
flation.
Please
do not misunder¬
been the subject of a lot of study
I am not advocating
and I think we know more about stand me.
ment,
consumer'
buying-power it and how to cope with it, how inflation as a cure-all. I am mereand consumption at record levels.
even to moderate it, than we ever
iy pointing out that in my opin¬
Also, bullishness and confidence did before.
One might even be ion
governmental
attempts
to
in the business outlook is prob¬
will
tempted to go so far as to say maintain full employment
time

•

sj-dered dangerously

own

just finished the best half-year in
history. The second half-year has
begun wifh production, employ¬

ably

• -•

0n

authorities;'in and turned-the reces-;
Washington

Right here I

a

not

will

incomes

ter century ago

homes construct-

new

termining the

has

a*.-^ in

in

1950

except

years

of

Looking

some

Big Boom in Business

apply of

danger

situation

that

have been almost
A

the

wilh all of these

automobiles
represent key industries. As they
production
recently go, so will general business. In
new high ground for
the past these industries have had

upward but to so increase
fidence

wituouf

number of
years it is reasonable to
that the average American
will have real purchasing
far greater than now.
Of course,
the upward trend of consumers'

impending business reces¬
The ability of stocks to turn
and move upward through

that recession

new

ed.

con¬

jf
t

n
in

units topped the one million
A noted real estate fore

number

preceding

the

h

to

seventh

caster

is fairly easy to

one

First,

that

explain

we

is

mark.

period, industrial stock prices rose
27% while production fell 10%.
How

same

That must
§ a deli-.
S^S^b^seola
qua"?
"Pward
by something approachconstruction continue to Sor ?ose-di vewhich,
be
^
\
mg 50.% m the. annual jate.;.
v
seTentt
whfchynaewWdlne
handled
with
great
care.
.It
was,
etmrings!
stock
;
^
but
not
least
one
of.
the
which
dwellthoughts in.mind p^es,
average,.cannot be con-^am'

yet

falling since the end of 1952,
during most of that nine
months' period industrial produc¬
tion had
been on the upgrade.

^
• o true
. a'. in
costly
same is true
in the-..

prove

to be inflationary

in their

if our eco¬
keep the in¬
modest bounds, it

Also,
the process was
speeded by the imbalance created
in the market by the tax on capi¬

peace.

gains.
That tax makes stock¬
holders unwilling to sell because

tax involved. As a
result of their reluctance to sell,
remains
rise

be that the public will be
getting a bargain. The net bene¬
fits and gains through steady jobs,
may

industrial output, the
technological advances,
rising standard of living, may

expanding
resulting
and

in

prices.

face

must

Basically,
mon

stock is due to the dividends

the divi¬
in the future.
Except in the liquidation of a
company,
the
only
portion of
earnings which a stockholder actually gets his hands op are those

it

is

dends

now

it

paying

may

pay

and

next vear

stocks ivill have to be¬
to loiuer yields

accustomed

come

than

think we

owev<er,
][ tnink^wq
fa'ct that
investors

they enjoyed in recent years.

That is part of the
pay

in

which

order

not

price they must

to

own

equities,

only serve as inflation

hedgps but also will be in a posi¬
tion to raise their dividend rates.
Another important influence on a
future

low

rate

of

capitalization

of buyingaccumulating steadily in
pension funds and the growing
com¬
interest of the American public in

Dividends

the value of a

the

in common

is

Value of Stocks Lies in

nomic managers can

within

supply available in the market
small even after a huge

the

long-range effects. But
flation

the heavy

Votn

d

T

tal

of

K

.%fooki
,

the

large

volume

power

stock

ownership.

basis for
American in¬
vestors have increased confidence
in the long-term outlook for free
The

stocks

current low yield
means

that

-enterprise. In Switzerland, where

Number 5454... The Commercial and Financial Chronicle

Volume 182

citizens

the

and

scious,

stocks

less

Germany,
stocks

In

In

Industries Offering

recently

j

lower

yields

_stocks

on
Therefore
inereiore, I
1

America
America.

Maule

must make allowance

we

do
do

its

not acnot
ac-

signal
to

seems

im-

still

lower

638,532

shares held.
fer

will

the factors I have

me,

basis

yield

in

The

a

the

these

proceeds

from

the

shares will

common

be used to repay about $3,000,000
0£ purchase money and real esmortgages

and

the

balance

and various

other building

Co.; Lee Higginson Corp.; Paine,
Webber, Jackson & Curtis; L. F.
Rothschild & Co.; Shields & Cornpany

PrillT,L

«Pnpral
.

fnnH<;

™.

expire at 3

p.m.

(EDT)

Maule

Othpr
,

mpmhprs

nf

thp

(rock and sand), con-

Walker

&

Co.*

omrm

.

With Emmett Powers

nndpr

members of the under-

..

(Special to The Financial Chronicle)

Industries

sale in South Florida of concrete Hornblower
aggregates

H."

„

aggregates, concrete blocks and Co., Inc.
ready-mix concrete in the south-

will be added to the company's east-

g "

g.

'n
t^v,c.+™
t
Rr
company believes it is Courts & Co> Johnston, Lemon &
the largest producer of concrete Co.; and The Robinson-Humphrey
ma-

terials. The

is
engaged writing group are —Central Resubscription of- primarily in the production and public Co. (Inc.); Estabrook & Co.;

Aug. 22, 1955.

on

just referred to which point to

offering

shares at $5.87% per share on the
basis of one share for each 21/2

That theory overlooks,

portance.
it

long-term

of

.

.

is

J?o°D additional
t(? subscribe
common

to

the theory that the present
yield. figure of say 3.9%
is a

.

Industries, Inc.

sale of

commonjshareholders of record

in

cept

danger

of

Part

on

longer range projections

I believe

Lynch Group

Underwrite Maule

West

yield

average

An underwriting group headed crete blocks, andready-mix conby Merrill Lynch, Pierce, Fenner crete. In addition it sells reinforc& Beane will purchase any un- ing
steel, lumber,
millwork,
subscribed shares.
cement, precast concrete products
.

Merrill

con¬

considerably

yield

America.

the

was

our

for

capital-gains

in

than

stock-

extremely

are

minded

21

(581)

&

Weeks;

Kidder

Peabody & Co.; W. C. Langley &

DENVER,

Chitwood is

Colo.

—

Ronald

Powers, 619 Twenty-Second St.

this

country.
the forecast calls for higher

So

dividends and
Both factors

lower yield basis.

a

point to higher stock

prices in the next
does

not

That

year or so.

that

mean

the

market

must

rush

stock

market is always subject to

setbacks

on

reversals.

or

derlying factors
of

tinuation

steadily.

up

The

But the

favoring

-

un¬

con¬

a

prosperity

are

GOING PLACES

so

strong that any general decline in
stocks is likely to be of modest
dimensions

temporary.

and

down

the farm

on

with Cities Service...

Also,

the fact that next year is an elec¬
tion

is important.

year

The chief hazards

against

to guard
optimism,

now

excessive

are

over-borrowing,

sudden

contrac¬

"»VVJQ

tions of credit, too sharp a rise in
interest rates, and excessive spec¬

ulation.
In

be

the

market's favor

added

that

its

tion is sound.

it should

internal

It is

condi¬

mainly

a cash
Margin requirements are

market.

already strict at 70%.
there have been

This year

substantial

many

readjustments in individual stocks
which
ket

healthy

There

ing

rotation

ma

believe

not

market

in reasons

that

'close

is

to

group

outstand-

any,

hand

at

why: I

•

.

major bear:

a

matter of speculative

this

is

•

,

A

excesses.

bear market is always the

•

%

process

of

unwinding previous excesses.
Before this, bull, market comes to a

-

final end I would expect the traclitiofial experience of a big tide of

J

speculation in low-grade and
•

•

A

that need correcting.;; /

excesses

One of the

do

by the mar¬
has been a

from

few, if

and

group,

%

concealed

are

averages.

ginal stocks;'
issues

ism.k
,

such

i

r

big

%®

|f|

-

True,' the blue/chips have; had

a

'■

-

the; blue/v

basic reason for optim-

a

•

mar- r\!

The fact that

stiIF;dag« behind

chips is

: \

rise, by way of trying to ;
with the economic pro-,:Avj
of' forecastiiig ■; gqql
.

catch

up

Cession ' -and

.

stillv ahead in business., TJid FV'
marketV needs a ...continuation of-f- 1
that, jgood jidws,- and
news

iS'goin^

L;|i

to getit.

;^-in conclusion,

I,again, remind:

you /that the stock market Has
been behind the economic parade
.

for

20

years and is still not
The economic, parade
itself is swinging into .high' gear
over

caught up.

face

future

world, prosX
perity unknown in the, past, .Let.

as

we

ys

all

peace

a

,

Tifft Adds

y".:

..

Staff

to

'

(Special to The Financial CkhoNicLE)

SPRINGFIELD,
ald R.
the

wsm

hope .'and pray; fof 'ivorld
that the people of the'<

§0

world shall prosper. *

1

WM&

Mp

Mass.

Bruder has been

staff

of

Tifft

-A

Don¬

added- to

Brothers,

1387

WIM&

Main Street, members of the New
York and Boston Stock

-

U
/

Exchanges.

,

-Aj

dyMOM&Z£»&t

Taussig, Day Adds
(Special to The Financial Chronicle)

ST.

LOUIS, Mo.

Fretwell is
&

now

—
William E.
with Taussig, Day

Co., Inc., 509 Olive Street,

bers

of

the

Midwest

mem¬

Stock

The mechanized farm

equipment, vehicles, and heating units

that make life easier for America's farm families... all

Ex-

heavily

'change.

on

depend

Cities Service quality petroleum products.

With MacBoyle Lewis
(Special to The Financial Chronicle)

SAN FRANCISCO,
A.

CITIES

Calif.—Mark

O'Leary has joined the staff of

MacBoyle
San

Lewis,

Francisco,

Russ

Building,

representative

of

the Harris Trust & Savings Bank.




®

A Growth
Number 12 of

a

series

-

SERVICE

Company

.

J.

with Emmett

now

The Commercial and Financial Chronicle..

(582)

£2

from

fn-ntiniiprl

13

naap

1

■

n^HAnftnlc

xlsilicitt

All

A iftUllVllla#

VIl

in

AU

'

the

William The Act effecting this was cited totally ; eclipsed

great
was

Chancellor

durecl because of its great merit.
The
following
observations
by
its
distinguished
author should

-

England

broaden

reflections

our

on

what,

to this point, has been gathered

up

On page 152 of his work cited, into tbis iittle paper.
kept constantly
replenished.
It Mr. Feaveryear said:
.«0n the wisdom of that one
is hardly too much to say that,
"Burke's oft-quoted remark is j0int-stock company, the Bank of
during many years, the weight of certainly true, that when he came Engiand> [t depends whether
the Bank, which
was constantly to England in 1750 there were not
England shall be solvent or iniu the scale of the Whigs, almost \2 bankers' shops outside London. soiveni This may seem too strong,
counterbalanced
the
weight
of By
the year 1793 there were but ^
not
All banks depend
voir, which all those petty sources

which

the Church,

constantly nearly 400."

was

the scale of the Tories."—His-

in

tort/

of England from the Acces-

sion

of

Moreover It

afforded

U«ade

inland

the

of

imme-

an

to

suDDort

Dowerful

and
the

Firth <~d'n,

llnd,

James

country

The1Original LtLriratlons fw
«.*p5 establishment show
in intpntion
State to
intention bv
by the
the state
to hiin
no

elude

privilege for it to op-

tiong

merchants

continuing,

monopoly,

of

England and all

depend

on

of

"(Postponement

Pay-

«We

are

developed

by

the

policy of the

rapidly
to

State

de-

had

let

banking

largely, Bank of England notes, which, as we know,
had a reserve; and thus to employ

exempted

and ancient and wretched method

large

of forcing loans.

specially

provisions

a

va-

that

alone—is

In his work

pre-

riety of debts, although it added viously cited, Mr. Laughlin, P. 99,
all negotiable instruments, and said the English credit system did
extended the moratorium from not need more money,
the original time of 30 days to
Sometimes a single word may

Nov. 4.—See op. cited, Appendices
& and E.
Mr. Feaveryear, on page 301 of

his

The

Sterling,

Pound

seems

Plan

a

.

firms

its

supplant,

liable
Subsequent

to

system of bankin8. depending for
it for as- Mg cardinai £unction on a single
sistance'
bank' that We can hardly COnIn the years intervening until ceive of any other. But the nat1797> many incidents arose which Ural system - that which would
in Passing, it must be said, served have sprung up if Government
private

temporarily
were

correctly to have interpreted the

were indu,cing m0st of
concerns to lean upon

that

thus

and

legislation

from

statutes
accustomed

g0

Exchange

relieved those who
for their payment.

some

banker."—P. 38.

and
a

the Bank

on

the increase was conthe Bank's opera-

By
sjderable

the

as

m

-

Affairs: U. S. and

when

Gladstone

of tbe Exchequer. For the past ments Act, 1914." It suspended cause . Currency Notes, paper
monptarv 81 years Lombard street has en- principally payment of. Bills of without a reserve or support, to

mm

■

«

m

seven
Ewart

.Thursday, August 11, 1955

of

when he described the
the moratorium as one

"^hich left one-half of the peo-

pie s debts enforceable while pay^
°ru-erS -Tl
be
postponed. At this point he expressed doubt as to the good done
by these postponing measures
m

and

those

by

of the other lm-

be revealing even though not emphasized where it appears. Consider

the

word

"coin"

used

as

in the following passage from the
Currency and Bank Notes Act
1914, (4 & 5 Geo. 5):

«(5) Currency notes under this

Act shall be deemed to be

.

.

.

current coin of the realm for the
purP°se of the Acts reIatin2 to
truck and an
Hke enactment."
_ Appendix, War and Lombard
street
155
T

portant countries,^he latter havFeav^rvear Aafd€l«Tf
r
h
fe nnthnri'/pd State.'"1' Throughout this time, all other trades competition ing followed the great "John
*
y
•
It | the
Ba"kJnnwa/n^u^d"zed statism prevented other banks brings the traders to a rough ap- Bull's" example. On page 53 of
There was no definite abanto deal in bullion and bdh., to
from
developing int0 concerns proximate equality.
A re- his
book afore-mentioned, Mr. donment of the gold standard, no
Tissue notes,and
ma
which, in national financial crises, public with many competitors of Withers said:
stoppage of payment, while the
p'lS Lrmnmw
hv
H
In- would be able to cooperate with
a size or sizes suitable to the
"All over the world the bill on JYar was infKpr?gr,ess'.tJ
c"
Political
co
y,
y
any

pended

on

thig ,<great engine of

0f

many

In

banks of equal size.

......

^

(

e

is

"There

was

is

tbat

to

business

banking

should

it

that

say

deposits'and

ceive

the

commence-

that the Bank should do

ordinary

an

the

•

that

doubt

no

create

re-

credit

a

-currency.

the first

from

Bank

"The

was

bank of issue and
not merely
of deposit." — The
Pound Sterling, by A. E. Feaveressentially

having to op-

the Bank instead of

),

from

intention
ment

.

.

-

Pa g a

galls

a

erate

on

a

business

different level.

every

is

the

trade,

of

constitution

if left to

itself, and

England is well

known

chiefly owing

come

to

and

wel-

England's

This year, marking the close of of banking as much as any other, mighty world-wide trade and the
the first century of England's pro- A monarchy in any trade is a fact that a claim on London can
nounced statism in banking, marks sign of some anomalous advan- always be turned into gold exalso the first occasion of the State's tage and
of some - intervention cept when we have a moratorium,
forbidding the Bank's redemption from without."—P. 69.
which has only happened once,
of its notes in metallic coin. The
". . . Our one reserve is, by and then it was not necessary."
resumption of such a practice did the necessity of its nature, given
The late J. Laurence Laughlin
not take place until 1821.
over to one board of directors, believed there was no reason for
Certain things additional to the and we are therefore dependent the moratorium. — See Credit of
community's departure from the on the wisdom of that one only; the
Nations, by, J. Laurence

tlveness
the link with gold was
destroyed lasiduously, and few

Seenirnegabzed at flFSt what waS
PPe™ng.

^

^

.

On his page 319 Mr Feaveryear
reported that, in 1918, anticipating the wars close, the powerful
Cunliffe Committee said that the
convertibility of the note should
every e"°fJ
FnP!eIe" pf J
. J?or accuracy s
,a?eAr ls i£minded 01 a
a

s ®^

*

-rnniTtln*;

"V™

cannot, as in most trades. Laughlin (Charles Scribner's Sons,
year,
Oxford University Press; Both the State and the Bank sub- strike an average of the wisdom 1918), p. 91.
9PT's'°" ^+2* 7,7nf ^urre"cy
Humnhrev Mulford, 1931, p. 85.
ordinated moral principle to the and the folly, the discretion and
The heavy price of England's Geo
Thirid,
(
Our only concern here with the ends
desired. During the year the indiscretion of many com- unnaturai banking system, whose
7
Becoinage of 1696-97-98 is to ob- when this breach of faith called petitors. . . .
defects were shown by Mr. Bage- . n ®
of a currency note
serve
that
during this eventful the Bank Restriction was com". . . For a long period, it [the hot 41 years before World War I,
dbe entitled to obtain on detime
the
Bank
continued
its mitted the Bank's directors offered Bank] was in wholesome dread was paid in the summer of 1914. ?a r' ailriilg ,
\ce bours at tbe
original practice of inflating the to
resume cash payments, and of public opinion, and the neces- in his work mentioned, Chapter fjf
;° J'ngiand, Payment for
currency
and
until after 1698, through the next year or two ex- sity of maintaining public con- m, Mr. Laughlin said that the 1 . not®. al !ts/ace valVe in, g?ld
made almost negligible advances pressed their readiness to do so; fidence made it cautious. But the banks other than the'Bank were
wnicn is lor the time being
to ordinary commercial business but they wished to avoid such a
EngWsh
Government
removed scared, and that, without employ- ^egal,,le"d^r in ,mre u"lted £inS;
See Feaveryear
Op cited
p. steP if the state should consider
that necessity. In 1797, Mr. Pitt ing the constructive measures pos- d01£ ~War ,and Lombard Street,
133
'
'
it to be inexpedient. In 1817, Par- .
required the Bank not to pay sible, they turned to the Bank authdrT Previously cited, Appenliament desiring resumption, found in
cash.
He
removed the
pre- and to the State.
dlx n~- P 155Statism in England's Banking
the Bank wavering back and forth servative apprehension which is
As Bagehot had seen, the public
1° bis work cited, on page 304,
Strong opposition to chartering on
the matter, and resumption the pest security of all banks." could not "strike an average of Feaveryear. shows that a conDie Bank prevailed.
Despite op- came onl.y in 1821> when, after —PjilO.
the wisdom and the folly, the dis- trolling sentiment was developed
fionents' strong but losing fight to111' years, the Bank's directors
The Chancellor of the Exche- cretion and the indiscretion of to prevent virtually the converagainst
starting
a
Joint
Stock thought resumption would be ex- quer "is, on finance, the natural many competitors."
Proven was sion of Currency Notes,
thank, no record appears of their Pedient.—See "The Bank Restric- exponent
of public opinion of his statement: "We are therefore
A most significant happening.
Itaving contended for a limita- tion," by Henry Adams,- Essays, England. And it is by that opin- dependent on the wisdom of that was the complete blindness to a

and

path of honor seem worthy of note,

—

.

.

.

number of such

in the

tion

tutions.
tains

No

expressed

an

charter for

There

jetrict

was

the

a

movement

no

number

of

facts

These
lain

lend

bank.
to

re-

partners

bank of
interest

history beginning

a

189-190, and Feaveryear, Op.
cited, pp. 177-178, and 229.
PP-

^be crisis of 1797, the fourth year
atter France had declared war on
England; but, in monetary affairs,

cer-

few years

ficial

banking

reported

on

here

f

Sterling, here greatly
shows

upon,

repeated in 1716.
combined

in

an

on

page

These two

155

were

notes led to the act of

noj

m,A^e' ^2 fn

/Virtually in all banks, to

J sbing d "

a number
exceeding six during the con-

Jkuuance of the Bank of England.
resJrictio/ lasted to the year
1826,

the

when

establishment

^mtd-stock- banks
gtecmitted;

;

it

was

....

of

.

early legislation was to secure
monopoly of issue to the Bank

__

_

.

J*

.

nJ

I

f

e

a

Oo

England.
v«erved

to

Incidentally,

prevent

Irrg"frbm/taking its

English

proper

it

re-

penalty

the

on

Bank's

di-

1914

concerning

advances

to

ac-

ceptors by the Bank of England,
important that the Financial Min- etc. The sentence containing this
ister should be a sound and portion is:
felicitous exponent."—P. 114.
«To
ascerta-in
the
causes
and
.

d

^

Some Observations on the
Eventful Summer and

for the

rcmedv

diffirul-

0abtainin > international

ex-

change the Chancellor of the Ex-

Fall of 1914

chequer consulted

The alarm of World War I
sounded upon the assassination of
Archduke Francis Ferdinand and
his consort at Sarajevo, June 28,
1914.

0l;-

jeading

acCepting houses
How
ar0und

and

can one

to

large number

members

of

and bankers."

resist turning that

mean

many

a

traders

that

the

bankers

busVes!meTnoToulv

t their burden in the lap of the
Bank but that th
rushed als0
to the state itself
Surely this
July 31. On Aug. 3 a moratorium £ime? Bagehot's view as to the
de4reef lt was ^ exP^e at English people's reliance on opinSj2t"
G
? one month, but by jon was sustained. iSoon fallacious
subsequent legislation was ex- thinking that more "money" intended to Nov. 4.
stead of a rational policy of credit

has

,

r,

*

E)e p te

DanKS aaaea immensely x
^nsiana s oanking iaciimes.

®

^y *2®

Lamented waiter uagenot

could
Pride
wben
trfed

not have been recalled with
either in 1925 or in 1928-31
re-entrance to this path was
unsuccessfully.
*t *s sad to realize that this
once greatest of all banking communities suffers from having ig-

nored the following advice from

their wise Walter Bagehot:

"Those who live under a great
and firm system of credit must
consider that if they break up
that one they will never see another, for it will take years upon
years to make a successor to it."
-Op. cited, p. 71.
The moratorium's effects amount

draPs,.d^e we sbould !00^ was needed had its ugly effect.
to a great monument to gross
10j ? moratorium.
Here was a degrading spectacle statism, which, beginning when
r1?, bl\^ar and Lombard Street °f seasoned bankers and other the Bank was three years old,

.

w

(John Murray,

Pu

JjJP' "
JL ri^iti'nnai Tninf
55^?.
o al J
t

necessary, Certainly, this attitude

.

r

rta

certain single moral responsibility
which was suffered by the banks,
tbe Bank, and the State. Among
aB of the numerous explanations
of forsaking the path of honor
in that memorable first year of
World War I nothing like generai regret appears over the actual> though not formalized, stoppage of paying money—gold coin,
that is—at a time when it has
been shown to have been un-

Publisher,

1918)

author, Mr. Hartley
s wrot^:
f

trained

businessmen.

The

sight

"A moratorium

may be defined
arrangement under which

occasions in their usual dealings,
surrendering their independence
^ £s }egaiiy enacted that creditors at a cost tcrfhe whole world which,
as

an

cannot
^me

for

ciaim

a

certain

payment

of

specified
what

even

yet,

llmost

defies

measure-

is ment.

Mr. Bagehot presented his use- due them. It postpones the dates

deprived the British of

a

natural

o£ these men, accustomed to system of Ranking, and on at
great self-reliance on momentous least two great occasions caused
was

From this and other causes the

the

banks

appear

the

as

Bank

and businessmen
helpless dependents

and

the

State.

to
on

The

evil

was vigorous, for it showed
great strength as the 18th Cen-

tury

drew

to

a

close

and

as

its

fui study of England's banking on which debts have to be met. issue of Paper currency by the successor began.- Yet, when a
devel- in 1874, the second year of the it may be general or special."
State took place. Such temporary decade- and a half of the 20th
bank-

«pment."—Palgrave, Op. and Vol.
tcited, p. 93.




vere

S+S
oqc

vie
a

...

ift9«

«,{/„„/??

.

*
'

l#€fd"by the act of 1862, which allowed private partnerships, not
.

somewhat

related

k

of issue was
further modi-

■Mang banks of issue, to have ten
t»*embers.'
The main object of
.

following

fbf®m+^odhatd mtbe Treas"ry ,and
J4ly 30 in London a finan^
™df
cial panic began The last London
Jo precipdcite greater monetary stock exchange to close did so on

.1708, which restricted the number
of partners in banks of issue, and
«ot

we

have relied on self-in- vealing experience. When reading
Merest but the State prevented in Appendix II of Lombard Street
that; we now rely only on opin- and the War, p. 152, he happened
should

.

act of 1742.

"The value ascribed to the power

of issuing

banking

afforded the writer the

Chance

caused the small group who man- rectors; and of these it is most

become so isolated as to have the
entire weight of meeting the
tliat
only three years after the State's bank needs, the result beBank was founded the State began ing that, during the years immediparticipating in the banking busi- ately preceding 1797, and at that
«ess by undertaking to give to the
tome, this institution could not
iBank a monopoly in operating as command
a sympathetic undera bank of issue.
For this purpose standing of its difficulties.
Still
•an
act was passed in 1697.
This w0JSd'
.^e bankcrs, especially,
was supplemented
by a clause in and businessmen, generally, were
an act of 1708, and this clause was
Bkely to misinterpret a refusal to
irelied

of

[board of directors] only."

one

thing which the war had not ion instead; the public opinion is upon a portion of a statement of
induced did great harm. The arti- a reward, its disapproval, a se- the Treasury, published Sept. 5,

a§ed the monopoly, the Bank, to

after 1694.
The Pound

system

Bank of
Under a

in ?ne

issue,

to

ion that we wish the
England io be guided.

We cannot doubt the gravity of natural

implied

or

Joint Stock

unincorporated

an

con-

withhold from others

intention to
a

insti-

of 1694

measure

*T.

Si»itKeoMer>-Vol.

v

i,

.

p.

The moratorium mentioned was help as may have been afforded Century had passed*,^ this force
"General Moratorium." by that of the first issue was gave a blow to the Isles,- a re-

441,3 B'k"*i." entitled

Number 5454

/olume 182

The Commercial and Financial Chronicle

...

i

which,

from

covery

lations

the

to

up

the

to

identical

with

should

State

be

that

which, as to
present time, has not been indi(ated
in
any
way.
A recent all other businesses, until re¬
shocking
consequence
for "The cently, was approved widely.
Let
us
not
be
contented
be¬
Old Lady of Threadneedle Street"
great
was
her transformation from
a cause the older country's
bank
proudly
boasting private misfortune was more than two
ownership for two and a half cen¬ centuries in coming. During about
turies to a bank owned by the 32 years of its approximately 42
of life our Federal Reserve

years

State.

Feaveryear ventures to offer

Mr.

System's

dominance

our

over

his personal opinion that with¬
out another cause than repudia¬

banks and businesses has been far

Britain would have
lost, as she did after such refusal
to pay, her powerful and, in most
particulars, beneficial control of
her
greatest dependencies.
Mr.
Bagehot defined credit as "the
disposition of one man to trust an¬
other."—Op. cited, p. 120. ~

of

ps

Great

tion,

greater than

England

and

V

Conclusion

'

in

very

(his

doubt,

reasoning

as

to

showed that
banking re¬

affairs

over

we

certain

throughout

a

long time in the place of
disquiet which would have
from

reliance

on

self-in¬

terest.

big

a

this would be a
England's
experience.

doing

of

Without

the

and

policies;

banking

study

many,

For
us

the

sake

of

our

future

let

immediately apply the remedy

outlined

in

the first

part of

this

article.

as

these,

J. H.

that

Two New Partners

much better

a

overworked

specific meaning—than

is

word

to

price index. This

any

increase in credit and in
"money supply" is
significant when it is compared with a fluc¬
tuating volume of output (with price changes eliminated).

the

more

find

course, we

continuous rise, but rather

no

appreciable variation from

which

do

to

seems

increases in money

of the country.

^

we

economy

to year

year

a

fact

a

—

injury to the rather naive notion of
supply to match the "growth" of the

"^^(The cold fact is that

in¬

an

(Special to The Financial Chronicle)

John

Moreover, the steps now taken can be shown to be
picayune. The recent small increase in the rediscount

can obtain
"prime rate," so-

new

the

price structure, but most of

warnings about "inflation" at present make

if any,

slight,

reference to prices.

and

Calif.—Edward O..
affiliated with

OAKLAND,
Beine

lately about firmness in the bond market. Yields,
have improved, but remember that in 1929, for
example, triple A bonds yielded around 4.75%, or nearly
that. And so it is throughout all these areas. Let no one
suppose that any real tightness has yet developed in the
money market.

of course,

It

We See

Stock

(Special to The Financial Chronicle)

our

of talk

As

York

With Mutual Fund Assoc.

history have been
low. There has been a great deal

as very, very

60
City,

Co.,,

partnership.

less, for that matter than they

types of investment. The
called, would during the most of

York

&

admitted Joseph
Carlyn Ring to

have

Lasser

R.

New

the New

of

Exchange

leaves the cost of
borrowing at the Reserve banks
far, far below the rates at which banks lend to their cus¬

Kaplan

Street,

members

rate

many

H.

Beaver

ades.

tomers—and

Lasser

K.

Josepu

have been living in

flationary economy, or i* one which was definitely af¬
fected by past inflationary activity, for at least two dec¬

regarded

discerned somewhere in the

Kaplan to Admit

continuous

on

Continued from first page

assumed

program run to about

submit, supply

we

"inflation"—if

of

any

very

has been done here

monetary

have

government's

security

the formal debt.

Such facts
measure

Here, of

during

value of the

present

as

England's banks

contentment

arisen

We should reappraise our pres¬

help

as

much

as

that of the Bank

preceding 1914.
Through such tracing of the older
see

the

liabilities under the social

was

years

history

while

over

businesses

many

the

ent

23

(583)

■

becom^

has

Mutual

Fund

Franklin

Street.

Associates,

173d

First Calif. Adds to Staff
(Special to The Financial Chronicle)

Earhart
with

has

become

California

First

;

Calif. —David

PASADENA,

B.

associated

Company*

112 South Los Robles Avenue. He

Inflation Rampant

we

had almost said

vast

is present—

rampant—and has been in this country

since the New Deal

got under way in the 'Thirties. The

credit which results in
greatly swollen bank deposits and currency in circulation
is the essence of inflation, and that we have had with us
for

of

over-expansion

bank

long, long while past. Rising prices has tended to
"soak up" some of it, so that that part of it has actually
registered itself in a form which is commonly termed in¬
flation, but the process has continued through thick and
thin, while prices were rising and when prices were not
rising, when the volume of business was increasing and
when it was not increasing. A look at this record of per¬
sistent inflation quickly reveals the puny nature of what
is now being done to "check inflation."
a

Let

us

take

a

over

in

when there

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

SAN DIEGO, Calif.—Howard T.
Snedicor
has
become
associated
with

Waddell

&

Fifth

Avenue.

Mr.

has

in

been
for

ness

viously

the

Inc., 2544
Snedicor, who

years,

many

with

Reed,

investment

W.

J.

busi¬

was

pre¬

Malmberg

&

Reinholdt Gardner Adds

SAN

DIEGO, Calif.—Frans ter
joined
the
staff
of
Cunningham-Cleland Company,
Orepheum Theatre Buillding. Mr.

Horst

ter

(Special to The Financial Chronicle)

has

Horst

previously
J. W. Malmberg & Co.

ST. LOUIS,
is

now

New

Mo.—John F. Koch

with Reinholdt &

400 Locust

with

was

Gardner,

Street, members of the

York

and

Midwest

Stock

Exchanges.

Co. and Fairman & Co.

With Hannaford Talbot
Joins Powell Johnson
(Special to The Financial Chronicle)

SAN

PASADENA, Calif.—Douglas S.
Powers

is

James

FRANCISCO,
Zuur

R.

is

Calif.

now

with

Powell, Johnson & Powell, Secu¬
rity Building.
Y

Hannaford

&

CHICAGO, • 111.—Adour E. An¬
js now connected with Nor¬
& Kenly, 209 South La Salle
Street, members of the New York
and Midwest Stock Exchanges.

—

connected

Talbot,

Kenly Add

(Special to The Financial Chronicle)

derson

ris

with

connected

now

Norris &

(Special to The Financial Chronicle)

519

California Street.

billion when the

COLUMBUS AND SOUTHERN

war

not

an

has elapsed since that time
increase in this figure. At the end

it stood at more than $70 billion. Commercial
bank investment in corporate bonds totaled some $7.3 bil¬
of 1945. It has grown

in each and every

since that date, and closed last year over $16 billion.
Variation
in
the
holdings of government obligations,
which still account for a very large part of the earning
assets of commercial banks, caused some slight fluctuation

OHIO ELECTRIC COMPANY

RESULTS OF OPERATIONS

of last year

lion at the end

Co.

Cunningham Cleland Adds

No year

1945.

was

Joins Waddell & Reed

look at that record. Total loans of all

commercial banks stood at about $26
was

previously with J. Logan-~&

was

The fact of the matter is that inflation

For the three months

For the twelve months

ended June 30

ended June 30

1955

1J954

1955

1954

$ 8,203,076

$37,300,611

$32,844,093

2,467

29,814

29,334

$ 8,205,543

$37,330,425

$32,873,477

$ 5,680,204

$ 5,428,54a

3,970,359

3,508,859

800,176

$ 1,276,344
1,922,260
727,080
966,715
641,352

3,012,165
5,456,000

Z,434,56ft.
4,871,000

year

in the

total volume of loans and investments

from year

but the trend in this figure, too, is definitely up¬
ward, and by the end of last year stood at over $155 bil¬
lion against $124 billion at the end of the war or, in this
instance, $114 billion at the end of 1946 when the Treas¬
ury had retired an enormous volume of debt carried dur¬
ing the war against an emergency.
The story is equally as impressive when we turn to
that much quoted
figure, total "moneu supply." This
amount, too, was naturally, not to say^inevitably, af¬
fected by the action of the Treasury in "cleaning up" its
war position. But when that was over, the total of deposits
and currency outside the banks stood at about $167.5 bil¬
lion. It has not failed to increase in any year since the«n.
In 1954 the rise was almost $10 billion, an increase which

Operating Revenues
Electric

_______

__

_

___

-$ 9,495,733

_.

_

Heat

Total

_____

__

_

-__

-$ 9,497,583

_

•

e>

.

to year,

was

approached (but not greatly surpassed) only in the

1952. At the end of last year the figure stood at up¬
wards of $215 billion. Less than, $2 billion of this increase

Operating Expenses
Fuel used in
Other

electric production-

operation

:

_

.

.$ 1,461,134
2,098,804
802,334

..

_

_

__

_

_

_

Maintenance

depreciation and amortization.

Provisions for

1,043,215

.

General taxes

due to

1,303,000
$ 7,508,663

$ 6,585,751

$29,352,255

$26,065,169

Operating income

$

$ 1,619.792

$

7,978,170

$ 6,808,311

32,324

$

124,523
2,288

income

laxes

1,988.920

Other Income

Rentals

interest income

and

from subsidiary,

$
Provision for deficit of subsidiary

29,549
36,628
*

Other

$

Total

$

21,681
*

1,046

250

Figures, Too

in point. The gross public
debt of the Federal government has increased some $20
billion since the fighting in World War II ended and the

figures

Earnings

common

on

shares

53,485

$

360,21j>

24,594
$

151,405

$ 7,168,526

$ 1,673,277

489,829

532,234

2,105,895

1,810,160

1,564,222
214,471

$ 1,141,043

$ 6,023,680

$ 5,358,359

214,471

859,824

_

859,824

5,163.856

$ 4 498,534

2,401,360

2,201.360

2,401,360

2,201,369

$0.56

$0.42

$2.15

$2.04.

$ 1.349.751

$

926,572

$

are

Earnings pel

common

share.

♦Denotes

red

figure.

ury was

This

an

interim statement.

mal

statements are

early postwar readjustment of the position of the Treas¬

completed. These are, of course, fnerely the for¬
obligations of the Treasury. Various contingent debts,

insuranc^ contracts and^the like, are difficult to estimate,




$

12.6,246
106,969
127,001

$ 2,054,051

$

billion at the end of 1929.

65,131

$

$ 8,129.575

government. It may be of some interest to observe that
the total money supply of the country was less than $55

Certain other

2,382,891

Total

r eueicu

enlargement of the deposits of the Federal

Other

7,439,308

3,192,002

1,052,000

year

was

8,041,525

is

The Company's fiscal year ends December 31, at. which

examined by independent public accountants.

time its financial
~

The Commercial and Financial Chronicle...

Thursday, August 11, 1955

(584)

24

W. H. Crowell Elected

Bank and Insurance Stocks

LOS ANGELES,

WALLACE-

B.

By ARTHUR

the

of

One

Calif.—Warren

Crowell, partner in the invest¬
banking firm of Crowell,
Weedon & Co., Los Angeles, has

Stocks

of

management

the

a

Aetna

Casualty

Aetna

Insurance

Agricultural

Re Insurance-

Insurance

Fidelity

&

Fund

Insurance

Hal'tlord

Insurance

Home

Fire
Union

ad¬

With

business

the

Surety

_

Insurance

Springfield

0.54:1
0.29:1

0.47:1

0.90:1

McCarthy,

0.62:1

S

0.20:1
0.72:1

t

Warren H.

Mr.

become effective

0.57:1

will
of

0.73:1

held in November of

0.80:1
1.03:1

0.99:1

0.84:1

at the close

National Convention to be

the

this year.

'

of the

Governors

from

ciation

Lester H.

Empey, American Trust

Company, San Francisco, J. Earle
Jardine, Jr., William R. Staats &

Co., Los Angeles and Eaton Tay¬
lor, Dean Witter & Co., San Fran¬

0 54:1

0.73:1

Board of
National Asso¬
California include

Other members of the

1.08:1

cisco.

0.40:1

0.49:1

1.03:1

1.08:1

native

a

Cali-

graduate of the University
of California at Los Angeles and
He is

0.63:1

a

0.59:1

a

U.C.L.A.

past President of the
Association.

Alumni

Ranson & Company

together with George W.
Weedon, formed the investment
banking firm bearing their names
in 1932. Since that time, he has
served on various committees in

banking field and
is a former Vice-Chairman of the
NASSD and a past Chairman of
the Board of
Governors of the
Los Angeles Stock Exchange. He
is a director of Seaboard Finance
Corporation and the New Idria
Mining and Chemical Company.

the investment

Effective
15, the firm name of The

WICHITA, K a n s.
Aug.

un¬

—

n-Davidson Co., Incorpo¬

rated, Beacon Building, will be
changed to Ranson & Company,
Inc.
The firm maintains branch
in

offices

Antonio and Mc-

San

Alleii, Texas.

ratio

other words,

Saunders, Stiver Co.

F. I. du Ponf to

Admit H. A. Rousselot
1, Harold A. Rousselot
will become a partner in Francis
On Sept.

one
a

year

curities

It

general market se¬

values

to

is

were

a

high grade bond

than

company

stake

est

has

seen

a

in
a

are

particularly
casualty
moves
are

(Special to The Financial

Ohio

CLEVELAND,

—

J.

A.

President
of Saunders,
Stiver & Co., Terminal Tower, an¬
nounces the appointment of Jack

Stiver,

LOS

port¬

Exchange.

earlier. The

"blue/ chip"

equities

improvement

[241/2%

To be sure, other

present
among

in

the shift,

multiple-line

companies; but the big
of equities that

favored by the common

Two Join Harris

stock

IRVING TRUST

H. Van Cott and William

Street. Mr. Van Cott was
with

Daniel

Reeves

was

Members American Stock

Exchange

Y.

Telephone: BArclay 7-3500
Bell

Teletype—JVY 1-1248-49

(L. A. Gibbs, Manager Trading Dept.)

Specialists in Bank Stocks




Sixth

to

the

Colony

Office:

Co.

Capital
Capital

Fund

The Bank conducts every

Company,

with

602 West

F. I. Du Pont Adds

rediscount

rate

purely

along

rate,

with the

then in effect, made an increase in the

a

of

matter

The

time.

credit-limiting

policies of the monetary authorities made an increase in the re¬
discount rate very imminent, because the other rates in the money
market had gotten out of line with the borrowing rate at the
Reserve Banks.

Federal

case

either,

is

which

the "prime bank

for

rate" was not fully expected

bank

"prime

the

in spite of the seasonal upswing in loans
getting underway about a month earlier than was the
in 1954.
It was evident that an increase was in the making
time

this

at

in

rise

The

interest

on

brokers'

"call loan" rate,

rate" when the banks pushed up the rate of
loans from 3% to 3V4%. The hike in the

which applies to brokers' and dealers' and borrow¬

against securities held for customers

ings for their own account or

buying, indicated that the "prime bank rate" would not
too long at the 3% area since the "call loan" rate and the

margin
be held

"prime bank rate" have

traditionally remained at the same level.

Tight Money Policy
rate! from 13/4 % to 2% in most
from 1%-% to 2XA% by the Cleveland
Central Bank, indicates the monetary authorities are going to keep
credit tight and make it more costly for borrowers to get funds.
The financing of the needs of business and the farmers as well as
the fall and Christmas trade will tend to keep the money markets
The increase in the rediscount

instances, and the increase

,/v

'

:x:-'■■■'; 'V;

/'"-/..'V'

expected that the monetary authorities
will let the money markets get too much on the defensive, since
it is believed by not a few money market specialists that/the
hardening process will not be carried too much further, unless in¬
flationary tendencies become much more pronounced than they
are

it

is

not

now.

Price
The

Enhancement

Bonds Anticipated

on

government bond market has been on

the defensive for

time and it is believed in some quarters that the
change in the rediscount rate and the upping of the various other
rates by the deposit banks has been pretty well taken into con¬
sideration.
Quotations have been going down in an orderly
fashion, even though at times some of the price declines for these
securities have been fairly sharp.
The thinness of the market,

quite

some

along with a rather sizable amount of "professional operations,"
has been mainly responsible for the occasional wide price gyra¬
tions which have taken place. To be sure, sight must not be lost
of

the fact that the

really important buyer of government secu¬

has not been in the government
It is not expected that there will
be any sudden change in the altitude of the large investors toward
government securities.
However, it would not take too much more of an adjustment
in prices of Treasury obligations, in the opinion of certain money
market specialists, before the demand will be picking
up in
selected maturities of the governments.
The 2]/2% bonds are
among the ones being looked at in certain quarters, since the
prospects of price appreciation appear to be better in these bonds.

rities, the institutional investor,
market for a long period of time.

Shearson, Hammill Adds
(Special to The Financial

HARTFORD, Conn.—Mrs.

in

(Special to The Financial Chronicle)

ANGELES, Calif.—Morris
Blumenthal and
Bertram I.

LOS

Hackel

have

pany,

associated

become

with Samuel B.

Franklin & Com¬

215 West Seventh

(Special to The Financial

M.

Chronicle)

Calif.—Merrill
Vanderpool is now with Loujs

A. Love,

PARK,

Co.

LOUIS, Mo. — Frank C.
now with A. G. Edwards

Stiers is
&

Sons, 400 North Eighth Street,
of the New York and

members

With Sheffield & Co.
(Special to The Financial

Chronicle)

Conn. William
C.
Petty
has become affiliated
with Sheffield & Company, 325
NEW LONDON,

State Street.

Stock Exchanges.

With J. Vander Moere
(Special to The Financial Chronicle)

GRAND RAPIDS,

Mich.—Henrj

Cassee has been added to the stafJ

of J. Vander Moere & Co.,

National

Bank

Building.

Peoples
•

Street.

Joins L. A. Love
MENLO

Dower has

Midwest

With Samuel B. Franklin

M.

(Special to The Financial Chronicle)

ST.

Mary

joined the staff of
Shearson, Hammill & Co., 9 Lewis

C.

Joins A. G. Edwards Staff

Chronicle)

Street.

Street.

South Figueroa

£3,104,687
description of

undertaken

then, existing

above the rediscount rate

rediscount

Chronicle)

ANGELES, Calif. —John
Bohls
is
now
affiliated
with
Francis
I. du Pont & Co., 677

£4,562,500
£2,851,562

and

also

become connected
and

the

above

Street.

(Special to The Financial

Uganda

exchange business.
Trusteeships and Executorships
banking

Sixth

Protectorate.

Authorized

Reserve

have

Coombs

Bishopsgate,

C. 2.
West
End
(London) Branch:
13, St. James's Square, S. W. 1.
Branches in India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

Paid-Up

levels

steady and consistent increase in rates paid on commercial paper
which also carried the return on this type of short-term collateral

LOS

London, E.

land

son

and

BANK

Government

and

man

Rains

LIMITED

26

Chronicle)

ANGELES, Calif. —Nor¬
P. Greene and Oscar H. Wil¬

LOS

Analyzed

Increases

formerly

with J. A. Hogle & Co.

Members New York Slock Exchange

120 BROADWAY, NEW YORK 5, N.

&

Crowell Weeden & Co. Mr.

Kenya

Laird, BIsseil & Meeds

D. Rains

ris, Upham & Co., 523 West

Head

Request

Two With Coombs
(Special to The Financial

with Har¬

have become associated

Bankers

l

Upham

Calif.—Edward

LOS ANGELES,

of INDIA,

COMPANY
on

Assist¬

He is a mem¬
ber of the Cleveland Bond Club
and the Cleveland Propeller Club.
ant Vice-President.

(Special to The Financial Chronicle)

NATIONAL

Bulletin

Stanley was formerly

Mr.

7xk% less ex¬

year

in the types

Sales

and

with Manager of Saunders, Stiver & Co.

Quincy Cass Associates, 523 West
Sixth Street, members of the Los

Angeles Stock

the

announces

Vice-President

Calif.—Daniel ley to

ANGELES,

also

Stiver

Mr.

appointment of William H. Stan¬

Chronicle)

F. Gallivan is now connected

with perhaps the larg¬

in its exposure.
factors

prices.

outstanding ad¬

folio in this list is

posed

long way

that the 1954

be noted

ratio of the most

herent of

a

1954 year-end

below the

With Quincy Cass

picture.

the rediscount
of the change
in the charge which the Central Banks make of the member
banks for borrowings on eligible collateral was not entirely an¬
ticipated. The upward swing in the yield on Treasury bills to
rate

However,

Traders Association.

earlier has been made,

when

time

1

& Co.,

Pont

du

and credit is very sizable

money

long awaited and much expected rise in
finally came along, even though the timing

tight.

Wall Street,
lessen
the
company's exposure. New York City, members of the O. Doerge to Executive ViceNew York Stock Exchange.
Mr. President. Mr. Doerge has been a
The accompanying table (based on
and
Vice-President in
Rousselot will retire from part¬ partner
consolidated data where fleets are
nership in Orvis Brothers & Co. Charge of Sales since 1951. He is
a
member
of
the
Cleveland Bond
involved)
brings this out very Aug. 31.
Club and the Cleveland Security
clearly, for a comparison with
I.

for

The

fornian, is well-known in Cali¬
fornia investment banking circles.

0.44:1

0.85:1

Crowell,

Mr.

1.66:1

demand

Recent Rate

Crowell

0.45:1

0.37:1

seasonal

Treasury bills, reflects the tight money

of

0.6;>:1

0.79:1

for

this, along with the pressure which is being kept on the
money markets by the powers that be, is keeping interest rates
on
the firm side. Short-term rates, as expressed by the yield on

a ry-

Group.

0.56:1

government bond

prepared

The

Crowell's term

0.98:1

market appears to have been pretty
the increase in the rediscount rate, and the
upping of the "prime bank rate." It is not unusual that the good
or bad news is fully discounted by markets when it finally comes
out.
Whether the longer government bonds have made a bottom
already is,purely a matter of guesswork and future records. How¬
ever, it is the belief of quite a few followers of the money market
that investors should be looking for a bottom in these obligations.
This will most likely be carried out by putting orders in under
the market for specific maturities, with certain of the intermedi¬
ate and longer terms being watcned most closely at this time.
The

well

California

the

Firm Name to Be

Ranso

JR.

and

He,

strong securities
market,
increasing the market
values of the company's holdings,
will bolster surplus account cor¬

respondingly and affect the

e c r e

Treasurer

0:42:1

0.74:1

J

to

by D. H.

ment

0.26:1

0.76:1

States

United

Governments

on

By JOHN T. CHIPPENDALE,

announce¬

an

0.63:1

1.26:1
1.12:1
1.26:1

_.—

& Sty._______
Fire__:—

U. S. Fid.

according

1.08:1
1.22:1
0.79:1
0.76:1
0.35:1
0.53:1

______——

Westchester

capital funds, it

It will, in

Fire

Paul

Security

is obvious that a

favorably.

____

Washington.

of

0.61:1

capital

premium reserve,

earned

funds ratio being

__________

Insurance

Seanoard

develop¬

adverse.
in

factor

one

Fire

Pacific

economic condi¬
assume increased ex¬

when

posure

________

Providence

during favorable

ments become

—

River

Phoenix

hand, the company that
volume, while it profits

tions, does

_____—

Insurance

Northern

St.

_______

Hampshire

North

Amer.

Bonding.

National

National
New

______

N.

Co.

Massachusetts

,

seeks

_________

Association

America,

0.97:1

0.65:1
1.28:1
0.74:1
1.04:1
0.49:1
0.94:1
1.26:1
1.59:1
1.05:1
1.39:1
0.67:1
0.99:1
0.50:1
1.58:1
0.53:1
0.53:1

_______

Fire

Insurance

a

other

Fire

Hanover

—

——___

Great American

expand the
management
deems it to be prudent to increase
writings.
Another is to be in a
more secure
position if the gen¬
eral economy experiences depres¬
sion,
and such factors as the
"moral hazard" come into play to
plague 'the companies.
On the
in

Falls

___—

vest ment

0.70:1

1.11:1
0.81:1
1.01:1
0.99:1

______

Firemen's

position to
volume of writings if
be

_______

Fireman's

latter course is to

vantage of the

Deposit

Fidelity Phenix
Fire
Association

Glens

__

Insurance.

Federal

company

One

—

Casualty

Continental

Others are "choosy"
about the risks that they cover,
and hence write less business and
exposure.

Insurance

Continental

writings.

less

& Shippers

Bankers
Boston

n

Bankers

1.14:1

0.90.1

1.21:1
0.56:1

—

American Surety

after business. Some man¬
agements seek volume of business,
at times at the expense of quality

assume

______—_

Insurance

American

0.85:1

1.10:1
1.31:1
1.03:1

__

American

goes

of

12/31/84

12/31/53

a company

I

FUNDS

the

of

ernors

lies in
the relationship of its unearned
premium reserve to its capital
junds, or, as designated in the
industry, the policyholders' sur¬
plus. The item of unearned preImium reserve is, of course, a
liability. When a policy is taken
out the premium must go into a
reserve,
as
the policyholder at
any time may, at his option, can¬
cel the policy and be paid off for
the unexpired time for which he
originally bought the coverage.
Under conditions of relatively
quiet securities markets the prin¬
cipal influence on the ratio of un¬
earned premium reserve to capital
funds is the avidity with which
of

exposure

three-year
on
the

term

PREMIUM

UNEARNED
RESERVE: CAPITAL
OF

RATIO

impact they have on an insurance
company's exposure.
The d'egree
of

toa

Board of Gov¬

tnis change in exposure.

stocks is in the

insurance

ualty

the outstanding

been

elected

been

these units have
influence in

followers among

which

in

ways

movements in the secu¬
rities markets affect fire and cas¬
strong

Reporter

H.

ment

This Week—Insurance

Our

Governor of ISA

With Renyx,
(Special to The Financial

BOSTON, Mass.
Lyons has become
Renvx.

—

Field
Chronicle)

William N.

affiliated with

Field & Co., Inc.

With

Federated Mgmt.

(Special to The Financial Chronicle)

WORCESTSER,

Mass.— Philip

Savy is now with Federated Man¬

agement Corporation, 21

Elm St

Volume 182

Number 5454..

Continued

from

The Commercial and Financial Chronicle

.

in the United States.

4

page

week and

15,516

This compared with 26,136 in the previous

060,000

dropped

during Aug. 1-6

13%

almost

Industry

August,

294 trucks.

than large

In

Canadian

truck

and

Canada

also

were

facilities

shut

down

for

vacation

set for normal operation

were

on

last

but these
Monday, Aug. 8.
week,

Commercial

industrial failures

and

rose

to

213

the

the

tail

in the preceding week, according to Dun
& Bradstreet, Inc.
Although failures exceeded slightly the 207
which occurred a year ago and the 195 in 1953, they continued 23%
Failures

Capacity This Week
This

year's

steel

business

is

practically wrapped up, says
"Steel," the metalworking weekly, the current week.
Order
books for some products have been closed for the rest of 1955

by some producers and on other products,
only six weeks of space left.

some

steel mills have

from

160

week

of

flange

while

Central

structural
Iron

&

sections

Steel

Co.

above
of

they

ago,

its

competitors'

industry is the big customer of the products
Central and that industry is booming. The Ameri¬

for

April, 1951, when the Korean
orders still

two

was

strong stimulant.

a

one

And

rolling in, continues this trade weekly, such as the
plants for the Fisher Body Division of General Motors
The orders for these plants are equivalent to about 20%

moderately to $6.21

rose

producers, comments "Steel," are not afraid of the fu¬
They're charting expansions. One of the industries counted
on
as
a
growing outlet for steel is air conditioning. National
Steel Corp. of Pittsburgh, says that
by 1960, air conditioning will
homes in the United States, in one-fourth of

automobiles, buses, office buildings and in most hospitals.
use air
conditioning for almost as many

new

More than 200 industries

it states.

reasons,

Prices

still

are

climbing.

The increases by Phoenix and Cen¬

tral pushed "Steel's" price composite
a

net ton, a

steelmaking

77-cent rise.

to

scrap

finished steel up to $127.41

on

Also up is "Steel's" price
composite on

$42.83

a

gross

ton,

highest

August,'

since

1953.
The American Iron and Steel Institute
announced that the op¬
erating rate of steel companies having
;

96.1% of the steelmaking
capacity of the entire industry will be at an verage of
90.8% of
capacity for the week beginning Aug. 8, 1955, equivalent to
2,192,000 tons of ingots and steel for castings as
compared with
86.9% (revised) and 2,098,000 tons a week ago.
The industry's ingot production rate for
the weeks in 1955 is
based on an annual capacity of
125,828,310 tons as of Jan. 1, 1955.
For the like week a month ago the rate

91.2% and

was

duction

pro¬

2,202,000 tons. A year go the actual weekly
production
was placed at 1,525,000
tons, or 64.0%. The operating rate is not
comparable because capacity was lower than
capacity in 1955

??A?«7,«nt.age
^Ules,
,or 1954
124,330,410 tons
of Jan.
as

are based on annua' capacity of

1, 1954.

Electric Output Scores

a

New All-Time High Record

For the Fourth Consecutive Week

Previ°US high level at 10,was attained in the preceding week, according to
output advanced

198,000,000 kwh. above that of

Loadings Rise 1.2% Above Previous

was

16.4% Over Like Week in 1954

markets

Grain

increased 9,338

cars or

slow

wheat

Department

1955-56 will be slightly

based

1.2%

above the preceding
week, according

quality of the crop was said to be unusually good.
Trading in grain and soybean futures on the Chicago Board
was less active last week.
Daily average sales totalled

of Trade

40,100,000 bushels against 52,300,000 the previous week
000,000

1
,
j"
price incentives, domestic flour
Some inquiry developed for new

'+

ago.

year

a

and 55,-

With the absence of any new

business

small last

was

week.

Spring wheat bakery flour but failed to result in bookings
as
prices sought by mills were .well above levels at which most
makers and jobbers hoped to buy.
Coffee prices were firm most
crop

the

week

and

rose

sharply at the close in both the spot and

futures markets.

.

The

rise

frost

severe

influenced

was

the

in

Changeover Operations and Heat Losses

automotive

estimated

previous
trucks

144,569

coffee

reports

by

growing

the

over

in

belt

heavy damage to the crop if the freeze

week.

The

amounted

to

below that of the

Automotive

compared

past

week's

167,384

units,

preceding week.

with

Reports,"
161,370

production
or

a

It

(revised)
total

decrease

was

assembled

was

the week closed.

about

of

of

in

and

cars

20,122

11%

the

units

reported for the

same

week

Last week's
cars,

the week.

In

15,516 trucks

bags

115,654

year

a

ago.

week,

the

refiner

failed to hold

The

raw

reflecting

covering

arrested

retail

a

early

The

advance

vices indicating
session

of

in

spot

weakness,

forward
in

of

progress

York.', last-

New

decreased

volume

sales

as

According

to

Board's

serve

the Federal Re¬
index, department

sales in New York City for

the weekly

period ended July 30,

1955 advanced

the

like

above that oi

10%

last year. Ini
the preceding week, July 23, 1955,
a

period

rise of 5%

of

the

four

noted from that

was

previous

week.

ended

weeks

of

increase

an

of

July

7%

For" the
1955,

30,

For

occurred.

the

period Jan. 1, 1955, to July
30, 1955, the index recorded a rise
2%

of

that

from

the

corre¬

sponding period of 1954.

fears of

Irving Lundborg Adds

comparing with

market remained firm

sugar

continuing

good

demand

displayed

Lard

raws.

cotton

reflected

for

Congress,

that

there

pork

values turned upward to

liam

J.

to the staff of

and

totalled

the

ad¬

week.
was

The

carry-over

against

and

San Fran¬

Joins Fahnestock Co.
(Special to The Financial Chronicle)

KALAMAZOO,

Mich.

—

Mar¬

garet B. Newhouse has joined thestaff of Fahnestock & Co., Peoples
National

was

Mis^
with

Building.

Bank

previously

Hulburd, Warren & Chandler.

no

With Bache & Co.

export subsidy, at

present restrictions on

14 markets were larger

in the

bales

46,400

preceding

of cotton in the United States on Aug. 1

Bache

CITY, Mo.—Allen L.

ously

Co.,
Mr.

with

and

joined the staff of
1000
Baltimore

has
&

Avenue.

Co.

reported at about 11,000,000 bales, the largest in 10 years.

'■

(Special to The Financial Chronicle)

KANSAS

continued.

bales,

York

New

cisco Stock Exchanges.

Newhouse

be

sales of the staple in the
69,400

Irving Lundborg &

Co., 310 Sansome Street, members
of

Newton

Reported

added

been

has

Swanson

cotton legislation at this

no

would

Calif.—Wil¬

SAN FRANCISCO,

early

buying influenced by Washington

that there would be

CCC selling would be

Trade Volume the Past Week Rose to the

B.

Newton

C.

was

previ¬

Christopher &

Waddell & Reed, Inc.

cars

and

temperatures in

many

sections, shoppers

spent about as much money in the period ended on
week
was

as

during the prior week.

at

the highest

Wednesday of

The total volume of retail

level ever attained at this time of the

year.

Last week the agency reported there were 22,815 trucks made

Joins Harris,

Upham

(Special to The Financial

trade

105,421

Highest Level

Ever Attained at This Period of the Year

year ago,

assembled.

/

humid weather finally

the

trade

about 5% under that of the com¬
parable week a year ago.

demand slackened following a sharp drop in hog

as

Following

the




1954.

continues.

register moderate net gains for the week.

last

year

ended

under the

output fell below that of the previous week

corresponding week last

weeks

increase of 12%
period Jan.

For the

1955 to July 30, 1955, a gain
7% was registered above that

strength, reflecting reports of expanding export trade but prices

while truck output declined by 3,321 vehicles during

were

t

Warehouse stocks of cocoa were reported at

Despite the torrid
car

four
an

week-end of

Brazil and

258,229 bags, up from 247,582 a week earlier, and

states "Ward's."

by 16,801

>
,

the

(Special to The Financial Chronicle)

as

an

preceding week due to changeover operations and heat losses. A
total of 120,937 units

5

;

•

least for the next several months, and that

industry for the latest week, ended Aug. 5,
"Ward's

carsr

*

,

••

*

pe¬

In the preced¬

year.

July

for

store

prices, accompanied by a further decline in wholesale fresh

U. S. Automotive Output Last Week
Dropped 11% Due

-.

stronger,

were

1955,

was

Hat and

„

corn

a

on

taken from

the like

from

recorded.

week

reflecting concern over the
lack of important moisture and the continued hot weather over
the belt. Oats were harvested under excellent conditions and the
for

the

of

July 1 crop prospects.

on

Prices

of

of

than the record for last season,

more

12)%

1,

;

of wheat;

Agriculture estimated supplies

of

sales

as

23, 1955, a?rise
registered from tha£
similar
period of 1954,

week,

of

was

velopment had little effect on the market..
The

remained

and

store

July 30, 1955,

continued

.

pre¬

year ago.

13%

of last

while

hedging pressure mounted with the start of the Spring <
harvest in the Northwest.
Reports of extensive rust de-j

cuts, attributable to the hot weather.

The

ing

as

Loadings for the week ended July 30, 1955, totaled
795,771 cars,
an increase of
112,154 cars, or 16.4% above the corresponding 1954
week, and an increase of 2,017 cars, or 0.3% above the
correspond¬
ing week in 1953.

1955, according to

advanced

wheat moving lower for

to, the Association of American Railroads.

To

;

riod

Demand for the bread cereal

the

for the week ended July 30,

Index Made Further

irregular with

were

level

a

Department

price index, compiled by Dun & Bradstreet, Inc., finished at 275.31
on
Aug. 2, as compared with 274.80 a week previous, and with
271.37 on the corresponding date last year.
the third successive week.

iThe

week.

the Federal Reserve Board's index

modity price level the past week.

ditional

freight for the week ended July 30, 1955,

revenue

week's

in • the
quick¬

wholesale trade

above

country-wide basis

:

strengthening in the general com¬
The daily wholesale commodity

further slight

a

last

of

moderately

vious

granulated from the distributing trade and the expectation of ad¬

Week and

noticeably

rose

Slight Advances In Latest Week
There

-

v

dollar volume

and

wholesale level,

general trend of food prices at the

to

5

was

activity of buyers
wholesale centers

major

total of the price per pound of *
and its chief function j

sum

Wholesale Commodity Price

throughout

Loadings of

The

Trading in cocoa was more active with prices turning firmer

the previous week, when the actual
output stood at 10,727,000 000
kwh. It increased 1,866,000,000
kwh., or 20.6% above the compar¬
able 1954 week and
2,461,000,000 kwh. over the like week in 1953.

Car

demand.
*

foodstuffs and meats in general use

is to show the

the Edison Electric Institute.
This week's

the

week

Housewives continued to spend
slightly more in food stores than
they did a year ago. Beverages,
frozen foods, canned
goods and
cold cuts were in high seasonal

ened

The index represents

the

of re¬

volume

dollar

in

higher than

raw

for

tourist

total

trade

of

^7nnnrmn^thu°nSeCUhV^ W^k* The
kwh.

Bradstreet, Inc.,

hogs.
31

generally enjoyed
business on

I

areas

Midwest +7 to +11.

drop of 12.5% from $7.10 on the corre¬

a

busier

were

New England and Northwest
+2 to —f— 6j East -(-3, to —f— 7^ South
+4 to +8; Pacific Coast +5 to
4-9;.,. Southwest -f-6 to .-f 10 and

-

Aug. 2, from $6.17 a week earlier. The

on

flour, wheat, barley, bellies, lard, potatoes, rice, steers

were

of

The amount of electric
energy distributed by the electric light
and power
industry for the week ended Saturday Aug 6 1955
was estimated at
10,925,000,000 kwh., a new all-time high record

'irV?.

-

Higher in wholesale cost last week were corn, rye, oats, butter, \
milk, coffee, tea, cocoa, eggs, raisins and lambs. On the down side

ture.

all

Thirteen of the

sponding date last year.

month's bookings in the fabricated structural steel
industry.

new

\

;

wholesale food price index, compiled by Dun &

stores

city department stores-

ages:

!

week

Upward In Past Week

Steel

be in half of all

j

small

a

Following the steadying movement of the previous week, the

are

new

Corp.
of

war

While

from 41

Wholesale Food Price Index Moves Moderately

current number reflects

it is strong, this trade journal notes.

Institute of Steel Construction reports June bookings of orders
fabricated structural steel were the highest since those of

can

recorded.

were

their last year's toll of 23.

exceeded

prices,

The construction
of Phoenix and

this size

of

.

Harrisburg, Pa., did likewise

carbon plates.
Both companies, subsidiaries of Barium Steel
Corp., sell below their competitors' prices when business is soft
above when

184

the

higher than a year ago, ac¬
cording to estimates by Dun &
Bradstreet, Inc. Regional estimates
varied from the comparable 1954
levels by the following percent¬

i

on

and

when

failing concerns had liabilities of $100,000 or more as compared
with 14 in the previous week.

Proof of the strength of demand is a couple of
price increases.
Phoenix Iron & Steel Co., Phoenixville, Pa., raised standard and

wide

involving liabilities of $5,000 or more edged up to 175
week, but they were not as high as in the similar

1954

;

9%

last

failures with liabilities under $5,000 dipped to 38

for

j

largest

The

week

below the prewar toll of 277 in the comparable week of 1939.

!

record

record.
in

ended Aug. 4 from 201

Steel Operation Scheduled at 90.8% of

new

Suburban

Business Failures Hold to Upward
Trend In Latest Week

manufacture

plunged almost 48%
the past week due to reduced slates at Chrysler and Ford of
Canada, plus General Motors shutdown for two weeks annual
leave. Hudson, Nash and Studebaker and International plants in
car

a

Resort

GMC and Chevrolet lowered their programs.

about $15,©0<L- |
receipts for

up

month.

the

key producers Dodge,

as

in

placed at 5,380 cars and 1,017
previous week Dominion plants built 10,095 cars
and 2,187 trucks, and for the comparable 1954 week 2,937 cars and
trucks.

sales

probably chalk

-

a year ago.

Canadian output last week was

The State oi Trade and

25

(585)

If

the

present

sales

pace

continues,

retail

merchants

will

Chronicle)

William H.
Wright. has
become
associated
with Harris, Upham & Co.,
135
South La Salle Street. Mr. Wright
was
formerly connected with the
Los Angeles office of E. F. Hutton,
CHICAGO,

111.

—

26

The Commercial and Financial Chronicle...

(586)

Continued

Investing for Income?
National Preferred

Funds Like Motor and Oil Stocks
major factors—C. I. T- Finan^
cial and Commercial Credit.
Buyers about matched sellers in
the

chemical

possibilities. Prospectus and
other information may be ob¬
.investment

Food

opinion

dealer

and

National

Securities &

Corporation

Research

120

New York

Broadway, New York 5,

earlier in

as

equipments, aircrafts
shares

and textiles.

reflected

from

the

shift

a

March

in

quarter

of

summary

folio

purchases

or

toward

clue

another

of net port¬
sales might give

But

a

predilection for the agricul¬

equipments and

the

at

balance.

on

a

nibbling

tobaccos.

Over-All

Retrenchment

S/^frnr/

en

gone with this new "gold¬

era"—little general disposition
caution
seems
in
evi¬

and

Canada

dence.

assets.

reduction

was

Opinion

Carl M.

also

been

during

the

of

in
any

transactions

tempo

same

first three

months

funds

increasing their
in common
stocks and equivalents during the
quarter
slightly
outnumbered
percentage

Co.

Members J^ew Tork Stock Exchange

42 Wall Street, New

lightened
not in

Purchase

continue at almost the

those
course

&

although

volume.

as

on

utilities, and the food shares

number

Loeb,

Rhoades

is divided

even

York

ket

of

assets

retrenching, although,
of
the generally rising mar¬

for

equities

cessitated

would

have

ne¬

selling merely to
maintain a fixed percentage dur¬
ing the period.
some

tables

summary

slight trend

toward

a

show

more

a

cau¬

tious

attitude, but scarcely suffi¬

cient

to

be

significant.
For ex¬
ample, 28 funds increased liquid
balances during the period under
review, while only 21 upped re¬
serves
during the previous three
months. Approximately one-quar¬
ter

1016

Baltim ore

•

KanaM

lessened

these

reserves

dur¬

ing the current June quarter, one-

MUTUAL DISTRIBUTORS, I„c.

Citj 5, M o.

^Principal Underwriter

general

half drew down these balances in
the March quarter (although divi¬
dend payments may have been a
factor

in

this

The

difference).

de¬

reveal

which

of

30

June

in

In

chairman, Mr. Randolph fur¬
".

leading,

on

have

market's

the

both

.

the

been

As

for

accounted
on

.

Common

.

87%

of

net

June 30, as compared

three months earlier.

in

reduction

the

re¬

rather than

known

.

.

companies.

some

instances

Distributors

Group

on
.

a

.

a

Chips at

return"

managers

New

by

York

assets

the D. J. Industrial Aver¬

rise in

stock

Farn-

issues

of

dividend

optimistic

great many

selling at
earnings, and
even allowing for

high multiples
yields are low
expected

a

are

increases.

expectations

If

are" ful¬

filled, the present level is perhaps
warranted, but if economic devel¬
opments should
the

market

be

disappointing,

is

undoubtedly quite
vulnerable." Scudder, Stevens and

Clark Fund's James N. White adds

further

a

ness

of

note

is at

...

a

caution

"Busi¬

point from which

possibility
of
troublesome
maladjustments is increasing and
which
the
likelihood
of
much higher earnings
except as a
result
of
gradual

long
term
growth is diminishing. These fac¬
in the opinion of
your man¬
agement introduce an element of

tors

caution
ward

and

less

modest

a

emphasis

change to¬

on

common

stocks."

Opportunity Abroad
One

solution

the

to

dilemma

presented by present stock prices,
gaining more recognition where
investment restrictions are no ob¬

stacle, is noted
in

by Imrie deVegh
accompanying the
Mutual Fund's June 30

his

letter

report:

lished

and

new

estab

investment

companies i
operations point to

worldwide
in

trend

the

direction

th

of

original British investment trust
of global diversification.

Great-West Life Assurance Co
McLouth

and

Steel.

The

latte

About 30% of the Fund is was likewise
acquired by Axe
represented
by
stocks
actually
Houghton Fund "A" and Genera
selling below their 1946
highs. American
Investors.
Other
no
Value?
Estimated
1955 earnings'
too well-known
companies pur
age.

ac¬

.

the

and dividends

greater

both

are

than

in

more

than

."

1946."...

as

40% of
of July 1 this

Mining, 11.4%; rails; 11.18%;
steels, 10.8%,and oils, 10.8%.
;

Other
caution

the

^TLanagements-j to express-

included

Trustees

the

of

Shareholders Trust of Boston

—"The

Growth Stock Fund

level where

a

individual

other

these

account

own

the fund's assets

Address.

and

a

year:

Massachusetts Investors

Roe

Banks, the memo points
DeVegh
Mutual also f o u n
price, on Tuly 1, the some
interesting new investment
stocks held were selling but oner:
recently which are not too famil
third
above
their average' 1946;:
iar -to the investing public, sue
highs, as contrasted with the 112% as

REQUEST

Nam.

Stein

the

Four groups make up over

<3)odon PJund

to

en

deVegh

in

Savings

90%

PLEASE SEND ME PROSPECTUS

conservatively balanced

Fund's

out that "as to

with 89%

from

of

Noting that all but two of the

their

received from the sale of

shares

on
.

issues in this portfolio are consid¬
ered
eligible
for
purchase
for

quisition of senior securities with
money

well

stocks

current

stocks

percentage resulted from the

new

the

in

This modest

common

invest¬

President, Harry H.
Hagey, Jr., states in the June 30

the market leaders

as

and

say.
a

Trust's

"In recognition of the greater
Discount," which
opportunities for growth and low¬
portfolio
of
the er
price-earnings ratios that pre¬
Common
Stock
Fund
of Groupvailed abroad, at the end of the
Securities,
apparently
disagrees
quarter more than one-third o'
with the Bernhard interpretation.
net
assets
was
invested outsid
You don't have to " 'down-grade'
the United States."
Growing in
to find values and a satisfactory
terest
of

stocks of

advance.

.

are

striking feature of the
advance has developed be¬

"Blue

a few years ago and yieids
declined
to
historically

levels.

investor

better than the return

discusses

prices of
low

on

most

But

insti¬

leaders

more

ham

the

memorandum dated July 28 titled

sult, many such stocks are far re¬
moved from the bargain counter
have

yields

yield basis of less than 3%.

companies

well-known

these

individual

stocks sell in

public buying inter¬

has centered

est

.

percentage point

smaller, less
The di¬
vergence
has gone so far that
"blue
chip" or "bank quality"

the

Fund), of which board he is
that

a

After-tax

present.

no

in

by the gradual restoration

portfolio."

from

half

than

recognized

com¬

end

states

per¬

wide

of Broad Street
Corporation, (an open-

tutional and

full

tween the trend of stocks that are

also
ther

three

was

in

report

Investing

common

recovery

income."

current

and

stock prices until it is

common

The

prices that has taken
place. Proceeds from sales were
reinvested in bonds and preferred
stocks of good quality.
It is in¬
teresting to note that this shift in
holdings was made without sacri¬
fice

stocks

fully

are

tax-exempt municipal bonds.

progressed

a

points in 1949, has been
steadily narrowed by the advance

now

stock

mon

stocks

of

has

business

all

of

view

in

made

to

were

and Distributor

PROSPECTUS ON

high.

value

managers

the Dow Jones Industrials for the

moderate

the further increase

and

and

The

Offered by

extent

the

This

ments

in

less

of net in¬

80%

about

to

holdings

stock

common

vestment

maintaining about an
equal
margin
over
sales.
The
companion table indicates that the

Report available

ter

reduced

of the year,

overseas.

(largest

Corporation

towards

have

fund investing in

the

Tri-Continental

of

Board

average

are

cy¬

too

normal

centage

Francis F. Randolph, Chairman

recorded

of

the

"near the end of the second quar¬

cles

portfolios,

mutual

Caution

of

at

believe that

mar¬

appears

the

which

stocks

business

the stock

preferred

i

servers

us

the

at

sents itself.

closed-end
fund), notes in the June 30 quar¬
terly report to shareholders that

classical

Fund

priced or overpriced at present.
The
spread
between
yields on

indicated over-all prefer¬

would have

by

66%

that

of

the

A non-diversified

general

ratings of

veloped

more

former

Line

while at the same time
presenting contrasting points of
view where the opportunity pre¬

ence

the

make

as

ously reported to shareholders of
solidifying the substantial gains

report: "The stock market has ris¬

is favorable,
in

The

re¬

ports,

Notes

continuing for .stocks of a
or
less cyclical nature—al¬
though some of our economic ob¬

off

declares unequivocally
"although the business out¬

ket

Negligible
With

well

as

sell

year,

that

holdings.

company

actually

H.

Value

hard's

look

individual

an

Watson, Vice-Presi¬
dent, reporting for Arnold Bernhalf

several

sold

were

securities

quarter;

in

a

some

a

Galvin

en

equity

rule

as

in

closed-

a

'iTi-u-ontinenial

company like

must

during the previous period a doz¬
funds increased their junior

of sales during the June

accomplished

Dal-

purchases.

growing

a

feeling of caution. For example,
only eight balanced funds pur¬
chased common stocks in excess

change in sentiment also resulted

-

Q/or^

interesting to

open-end fund, whereas

excess

But to grasp
the picture fully we must turn to

tural

Established 1930

shares,

the year; while a bearish outlook
carried
over
on
the
electrical

tained from your
or:

stock

common

is

It

be

can

ance

end

two

supervised investment in a di¬
versified group of preferred
stocks selected for their income

balance of

on

investments."

note how a.moderate shift in

mutual fund providing a

a

sale

page

-

Slock Series
is

from first

Thursday, August 11, 1955

stock

market

as

whole

a

longer be regarded as be¬
ing undervalued
in relation to
other segments of the economy.
A larger proportion of new
can

no

chased
of

during the second quarte
were Bowater Pape
Axe-Houghton "A"; ^Murra

the

bv

year

Ohio Manufacturing Co. and Rie
gel Paper Corp. by Axe-Houghto
"B"; Gustin-Bacon Manufacturin

by George Putnam Fund of Bos

Topp

ton;

Industries.

Line

Value

ral Gas

Fund;

th

bv

by Tri-Continental Corp

Whitehall

Fund, National Invest

Fidelity

ors,

Inc.

Pioneer Natu

Putnam

■

Fund

Fund;

and

Georg

-Automatic"-Can

...

City

.

State_

funds

was

invested

come-bearing

vAassachusetts \nvcstars Trust
l/t\'rsf

formance

in

securities,

fixed-in¬

in

onliov

with

con¬

previ¬

the Howe

California

by

the

corporation,

Water

Delaware

and

an

Te^ohon

Fund;

Weste

*

Century Shares Trust

in

teen,

ATOMIC SCIENCE
through

Canada General Fund

</

MUTUAL FUND

(1954)

Q

MUTUAL

is
•

With the investment

Bond Fund

FUND, Inc.

OF

designed to provide

RESERVES:

BOSTON

INCOME:

managed investment

in

a

variety of

companies participating
in activities

resulting

A prospectus

relating

investment funds may

to the shares of any of these separate
be obtained from authorized dealers or

VANCE, SANDERS & COMPANY
111

DEVONSHIRE

•033 THIRTIETH STREET, N. W.

WASHINGTON 7, 0. C




NEW
6i

YORK

Broadway

CHICAGO
JZO

GROWTH:

B-4,

fully managed Canadian

long-term
certain

iSeries K-2, 5-3, 5-4

Prospectus from

A

your

Company

see

king

CAPITAL GROWTH
TAX BENEFITS

Canadian Laws

local investment dealer

Tlie Keystone

South I.aSalle Street

LOS
Zio West

ANOET.F.S

Seventh Street

50 C ongress Street

an

under

or

STREET

BOSTON

nunc BEVELOPMENT SECURITIES CI

Series B-2, B-5,

"

Investment

K-l, iS-1 and iS-2

from Atomic Science.

iff m FACTS AND FREE PROSPECTUS

objectives of

iSeries B-l

Tun

ofC anacla7 LP

Custodian Funds

VTTe
ATOMIC DEVELOPMENT

eystone

eystone

LIMITED

Company of Boston
Boston 9, AAass.

Volume 182

Number 5454

The Commercial and Financial Chronicle

...

Light and Telephone by Institu¬

lightened in two other port¬ Sunray Mid-Continent Oil. Two
Sinclair
Oil
and
Texas of the latter were initial commit¬
Company were the next, most ments while a third purchase rep¬

were

tional Foundation
Fund; Manufac¬
turers Life Insurance

folios.

Company of

Canada

by

American

.European

Securities;
and
Powell
Company, Ltd. by Lehman

River

Cor¬

poration.

The

oil

issues

were

issues, five purchases of
amounting to 42,400 shares
of the former and 7,000 of the lat¬

resented

each

ceived in the merger. Acquisitions
were made of new shares received

ter.

as

Selected

and the

American

periods.

Six

funds

new

with
Socony
Company vied with
for third position.
ranking most popular oils

shares

to

re¬

result of the two-for-one split-

a

of

ups

position

'additions

Pure

Oil

Union

and

and Gas "A" and "B."

centrated! selling was

the

among

though

Little

total

three months

con¬

in evidence

petroleum

matched

most

Oil

issues

transactions
those

of

the

of

the

the

tion

of

funds

also

well

divided

Jersey,
equaling 17,800

eliminations.

Acquisitions
Motors and
auto

and

the

of

group.

Two

were

21,000 shares

Pacific

Coal

24,000

(Indiana) 35,000

and

Oil,

and

one

investment companies

small

elim¬

actions

of

both

FUND
tjftoAten

General

Chrysler featured the
division. Buying

Putnam Fund Distoibutoas, bit

parts

former

one-third

offsetting purchase of 300 shares.

Richfield,

14,819

PUTNAM

of

Oil

of

and

represented

the

50 State Street. Boston

over

purchase trans¬

additions

of

lat¬

the

ter, 20% of the acquisitions in the
shares

95,800
added

to

15

Continued

12,000. inated the old stock of Ohio Oil,

of

Motors

portfolios
on

and

page

FOUNDERS

29

MUTUAL FUND

Balance Between Gash and Investments of 63 Investment
Companies
<

End of

Quarterly Periods March

and June, 1955
Investment Bonds and

Net Cash <fc Governments

Net Cash & Governments

Thousands of Dollars

Open-End Balanced Funds:
Shares

7,033

Axe-Houghton Fund "A"__

7,060

3.254

3,088

American

Business

Axe-Houghton Fund "B"
_l

Investment
Diversified Investment Fund,

Dodge and

Cox

;

Inc.—

Fund-

Eaton

& Howard

General

Investors

Investors

•

_£!•,

29,207

:

.

Fund

Wisconsin

Fund,

Open-End

Stock

Inc

Green

&

.

Fundamental

76.0

1.9

1.0

25.8

25.3

72.3

73.2

294

8.5

6.7

22.6

22.9

68.9

70.4

20

10.4

0.5

None

4.3

89.6

95.2

9,135

5.7

5.8

26.0

24.5

68.3

69.7

592

;

1,099
<

f

329

12.1

15.4

9.9

9.4

78.0

75.2

6.9

10.4

11.2

12.3

81.9

75.3

23,726

3.8

2.9

27.1

28.1

69.1

69.0

259

6.2

6.2

25.6

21.0

68.2

72.8

85.1

82.0

30.1

55.1

56.2

2.1

1.5

.25.4

26.6

72.5

71.9

1,420

2,478

2.8

8-0

1,0*0

5.6

2,778

2,513

1,632

1.5P-9

42,385

43,793

175

243

391

366

8,156
292

Fund

:

4.7

36.3

32.6

60.9

62.7

6.0

17.9

19.1

76.5

74.9

23.0

19.2

26.5

27.0

50.5

53.8

15.1

14.8

9.5

9.6

75.4

75.6

10.1

9.5

21.8

22.0

68.1

68.5

3.o

3 8

39.9

42.5

57.1

53.7

4.5

3.8

None

None

95.5

96.2

32,248

2.5

9.7

None

None

97.5

111

4.6

1.6

21.0

19.4

74.4

13

24

2.0

3.3

15.3

17.2

82.7

1,548

1,589

6.2

6.0

None

None

93.8

94.0

89.6

87.5

1,113
3,152

,

;

v

.

Prospectus may be obtained

jrom

authorized

dealers

or

FOUNDERS
MUTUAL DEPOSITOR

CORPORATION
tst National Bank

Building

Teletype DN 249
COLORADO

2

DENVER

New England

86.8

87.1

2,365

2.9

93.7

89.4

11.6

2.5

None

83.3

88.4

15.3

0.2

0.3

83.3

84.4

2,923

4,770

7.0

9.9

0.9

None

92.1

90.1

3,862

4,147

22

2.1

0.1

3.2

97.7

94.7

5,455

5,583

2.0

1.8

None

None

98.0

98.2

3,663

3,925

19.5

19.4

None

0.4

80.5

80.2

1.5

3.4

None

None

98.5

96.6

1.8

2.9

None

None

98.2

3.5

4.3

9.9

11.3

86.6

84.4
94.2

240

604

3,739

6,494

166

242

*

97.1

3,810

3,686

7.0

5.8

None

None

93.0

1.235

202

8.3

1.4

5.2

5.0

86.5

93.6

—

8.553

9,125

19.6

19.6

23.7

26.2

56.7

54.2

Trust————_

13 292

12,550

1.6

1.4

None

None

98.4

98.6

7^2

884

1.1

1.1

None

None

98.9

98.9

630

1,028

10.4

15.2

13.2

13.6

76.4

71.2

650

1.095

1.3

2.0

None

None

98.7

98.0

5,008

1617

4.3

1.3

None

None

95.7

98.7

518

5.7

4.3

32.1

32.5

62.2

63.2

Massacf usetts Investors Growth

Stock-

Mutual Investment Fund

—

National

Investors

National

Securities—Stock

-

$New England Fund

652'

;

Clark

&

0.6

4.7

14.2

...

Locrris-Sayles Mutual Fund

Stevens

8.8

None

7.7

16.5

—

Investors

2.4

12.3

1.6

1,113

__

Knickerbocker Fund

1.6
13.2

29,094

_

•,

■

I

79.5

1,859
3,230

10.1

Fund

90.3
79.0

1,056

Stock

Investment Co. of America.—

-

28,679

Investors

Massachusetts

'

438

—

Institutional Foundation Fund

ORGANIZED

1931

National Distributor

Coffin & Burr
Incorporated
Founded 1898

BOSTON
NEW YORK

PORTLAND

HARTFORD

BANGOR

Common

Stcck Fund

Selected American Shares.

170

98

1.9

0.9

None

None

98.1

99.1

3,934

2,871

9.6

6.2

None

None

90.4

93.8

9

13

0.6

0.9

2.0

3.6

97.4

95.5

Sovereign Investors
Street

76.1

12.9

Capital Corp.—_
Group Securities—Common Stock Fund
Incorporated Investors.

Street

15.3

31.9

General

Wall

16.7

13.8

,L_

:

-

Howard

State

73.6

!

2.0

.

Fund

Scudder,

73.3

13.7

Shares

Fidelity

24.6

4.2

Vegh Mutual Fund—

Eaton

24.8

8.7

229
229'

Fund

Mutual

Delaware Fund

Dividend

74.4

1.8

7.2

13.0

Street Investing

§Bu!Jcck Fund
de

62.4

74.1

INCOME PLAN

Funds:

Ridge

Ercad

63.5

1.726

Fund

Axe Houghton Stock Fund
Blue

6.7

1.8

3,467

Affiliated Fund

Bowling

7.4

2 167

Fund

Whitehall

56.1

1.040

§Vaiue Line Fund

Wellington

56.6

3,093

Fund

Farnham

22.1

.:':4 2,076

Scudder, Stevens & Clark^Shareholders Trust of Boston
and

22.2

'

Securities—Income

Roe

21.8

22.2

206'

§Nation-Wide Securities

Stein

21.2

/

30.9

898

Trust——

Mutual

Gecrse Putnam

June

'..j

Johnston Mutual Fund——
Naticai

March

24.1

8,690

8,367

Fully Administered Fund—
Group Securities

June

29.1

315;

Balanced

March

3.4

338

fDreyfus Fund-—

End of

June

1.9

2,541

6,730
1,002

End of

—

ACCUMULATIVE PLAN

Per Cent

March

1,652

2,343

Commonwealth

Grade Bonds & Pfds.

Per Cent *

■:

8114

§Boston Fund

End of

—

June

SYSTEMATIC PAYMENT PLAN

Com. Stks. Plus Lower

Preferred Stocks

;Per Cent

End of

March

Seory*

seven

al¬
first

portfolios. A like

£J/ie

purchases
shares offsetting
six sales amounting to 11,990; two

shares of Gulf Oil with

of

Two

Mid-Con¬

Standard

on

New

2,000

shares

a por¬

split-up.
old

27

received

offerings totaling
Opinion was fairly

shares.

number of trusts lightened

Standard Oil Co.

shares

sold the

7,500

Three funds each bought a total of

a

lightened

new

tinent Oil stock,

shares, of Atlantic Refining 3,200
shares, and of Cities Service, 9,625.

stock from their

the

in the two-for-one

of the latter represented complete

Three

year.

while two others

al-

lantic Refining, Cities Service and;
managements sold a total of 10,500
Standard of California. Acquisi¬ shares of Anderson-Prichard
Oil,
tions of the latter totaled
23,900 two completely eliminating this

shares, two making

commitments.

first

the current period, each
purchased by four trusts, were At¬

On

purchased

the

of

shared

during

favorite in the group as it had
been for each of the two
previous
total of 20.300

quarter

had

Dutch

Third

hand, both Dreyfus and
Wellington
lightened
commit¬
was

first

Texas

Royal

Shares

Knickerbocker Fund.

Socony Mobil Oil

the

Sinclair

while

un¬

the other

ments.

In

ranking

especially

der review by the Scudder Stev¬
ens
and
Clark
Common
Stock

Fund,

,

popular

year

Oils Most Popular

well-liked during the quarter

(58?)

Investment Corporation—.

15.8

10.6

None

0.8

84.2

88.6

1,218

19.7

18.8

0.9

None

79.4

81.2

3,464

4,190

4.9

5.4

0.5

0.6

94.6

94.0

413

467

3.0

3.1

5.4

4.7

91.6

92.2

932

1,341

3.0

3.9

0.8

1.0

96.2

95.1

Stock

6,9F6

6 384

11.2

10.0

None

None

88.8

90.0

Fund

•

Ridge

Mutual Fund, Inc.

17,108

1,201

23,902

Investing Corporation.

Blue

Closed-End Companies:
Adams

Express

American European

American

International

General American
General Public
Lehman

Securities
..."

Investors

4__.____

Service

Shares

Overseas

Securities

1,237

1,233

'6.7

6.2

None

None

93.3

93.8

23,145

16.785

10.6

7.5

None

0.2

89.4

92.3

1,245

3,764

7.2

16.0

1.1

0.8

91.7

62

256

1.6

7.5

None

None

98.4

160

4,662

0.1

1.8

12.7

14.8

87.2

83.4

10,335

8,937

13.5

6.7

None

None

86.5

93.3

...

Corporation

National

*

—

Corporation...

Tri-Continental Corporation

flU. S. & Foreign Securities.

bonds

•Investment
for
for

bends;

preferreds.

stock
1955

into

Fitch's

policy.
figures

U.

S.

&

and

preferred

AAA

through

stocks:

BB

{Flexible
corrected.

fund

with current

flU. S. and

Foreign Securities.




Moody's

and

{Formerly Nesbett Fund;

Aaa

approximate

through

balanced

International

Ba

equivalents

flexible fund with

policy.

Securities

merged

(_

83.2

92.5

/

Prospectus may be obtained
from authorized dealers or

SUMMARY

Changes in Cash Position of 62 Investment Companies

current

SMarch

A Common

Unchanged

Total

Plus

Minus

Balanced Funds

10

7

6

23

Stock

12

7

11

30

13

10

Open-End

Companies:

Funds

Closed-End

Companies

6

Harriman Ripley

National Distributor
63 Wall
BOSTON

Totals

28

15

20

63

& Co.

Incorporated

•

Street, New York 5, N.Y.
PHILADELPHIA

•

CHICAGO

28

The Commercial and

(588)

Financial Chronicle.. .Thursday, August 11, 1955

Management Groups

Changes in Common Stock Holdings of 47 Investment

Deiaware

(March 31

A

mutual

new

investment
which

company
and

more

exceed buyers—by two or more management groups. Issues which
Numerals in parentheses indicate number of managements making entirely
completely eliminating the stock from their portfolios.

owns

supervises

versified

group of

No. of

No. of

No. of

No. of

No. of

No. of

No. of

No. of

Shares

Shares

Trusts

Trusts

Shares

Shares

Trusts

Co

Deere

31,600

International

Harvester

Auto and

10(6)

FACT

2

6(6)

15,100

6(1)

29,750

United

1

None

1,900

300 Broadway, Camden 3, N.

J,

3,500

2

3

5(2)

None

None

Lockheed Aircraft

6,700
11,600
2,260

Kl)

2,000

Sperry Corp

29,630

400

2(1)

Distributors, Inc.

23,000
24,000

—-

Airlines

Airplane

Boeing

4,000

KD

1,000

.......

Douglas Aircraft

2,000
3,600

3

14,500

19,000

Mead Corporation

8,000

St.

None

Corporation

Regis Paper

300

International

None

St. Lawrence

4(2)

and Printing

3(1)
1

1

15,000

Remington Rand

Marathon

None

2(1)
3

18,000
15,000

None

4(2)

2,000
4,950

3(2)

2(1)

4(2)

None

Equipment

Paper, Pulp

3

Mines.-

Burroughs Corporation
Internat'l Business Machines—

4(2)

None

None

60,600

Reynolds Metals
Office

37,000
3,200

3(1)
6(3)
1

Aviation.

Airlines

American

Mclntyre Porcupine

None

None

None

Copper

None

None

None

Kennecott

International Nickel

500

~

Bay Mining & Smelting

500

1

None

Hudson

1

Pasco.

15,500

None

None

de

Cerro

2(2)

5,500

Aluminium, Ltd.

1

None

None

Mining

2

None

Aviation

American

3,400

None

(pro¬

North

8,970
14.900

2(2)

2(1)

request

from
the undersigned.

Delaware

—

Spring and Axle

spectus)' available
on

Canada, Ltd

of

Motors

Rockwell

9,200

5(3)

Auto-Lite

Motor

General

95,800

18(3)
of

Ford

900

4

1

—

Electric

5,400

2(2)
2

3(2)

11,100

Parts

Auto

Chrysler

166,400

13,500

25,500

Oliver Corporation

None

None

and

27,750

and

Metals

Agricultural Equipment

se¬

BOOK

IJ

Sold

—Bought—

Sold

Trusts

curities.

Copies

:

'

in italics.

are

—Bought—

di¬

a

or

bought

than

sold

managements

purchases

June 30, 1955)

buyers exceed sellers—or sellers

which

Transactions in

Fund

—

Paper

Corporation, Ltd...

KD
1

None

8.800

6

6,000

2(1)

6(4)
Petroleum

and Equipment

Building Construction
3

3(1)

11,800

2(1)

3,000

2(1)

1,300
22,000

3(2)
2(1)

American Radiator

5,900

Bridgeport
Flintkote

_

Glidden
Lone

9,600

/

Brass

Dragon Cement

.

.

...

.

__

_

____

Co.

Cement.

Star

2(2)

30,000

Masonite

2(1)

11,000

Merritt-Chapman and

2(1)

10,000

United

Corp.

_.

Scott....

.

States Plywood

None

None

National

None

None

Pabco

_

.

None

None

None

None

None

None

None

None

None

None
None

6(1V2)

None

2(1)

None

None

4

23,900

8,000

2

3

24,000

2(1)

3(3)

12,000

■

•

I

Chemicals

2(1)
3(1)
2(2)

FUJND-1NC
In the

Dreyfus Fund

we

hope

and

intend

we

to

Interchemical
Tennessee

_

...

Corp.

_

None

None

None

duPont

None

None

Eastman Kodak

None

None

Spencer Chemical

None

None

Victor

_

_

DREYFUS Corporation

Broadway, New York 4

50

1

1(1)

None

None

3,000

1

1(1);

19,000

and Oil.

Texas Pacific Coal

Union Oil and Gas Corp. "A" 3__

None

"B".__

None

.

.

.

1,300

Union Oil and Gas Corp.

None

None

2(1)

1

2,800

3(1)

None

2

I

(new)500

4

26,800

3

9,500

4

35,600

Consolidated

4(3)

19,000

Lone Star Gas

27 0

Chemical

(new)

None

17,100

4(2)

72,000

2(2)

-

None

None

10,500

3(2)

300

14,819
7,500

3

None

Petroleum 2

Mid-Continent

Ohio

2(2)

J30,000(new)2
\ 6,200< old) 2(2)

Oil1

Gas

Natural

Glass

American

37,800

None

None

None

None

Can

_

.

_

Corning Glass Works
*

Hazel-Atlas Glass

.

.

...

.

20,000

1(1)

11,600

3

12,200

2

:

•

6,000

2(2)

or...

Mid-Continent Oil 2____

3,900

15,000
2,450

Eli

2

4(1)

25,800

Pfizer

2(1)

2

2,000

1

900

1

1,000

None

None

None

None

_

_

None

None

—

.

None

None

None

None

Lilly "B"

McKesson

Robbins...

and

.

...

Sterling Drug
Colgate-Palmolive

_

-

_

_

3,804
105,000

6*

Drug Products

from your dealer

None

1

take

(prospectus) free

Sunray

None

in that direction.

Illustrated booklet

1(1)

KD
"2

15,500

1

__

Containers and

consider sensible risks

we

None

200

California

of

None

None

__

—

Blockson Chemical

None

4(3)

what

None

None

-

make your money grow,

to

35,000

None

None

Standard Oil

7,000

6(1) (new)15,200

2

1,000
21,000

4,800

3(1)
None

None

Powder

Hercules

11,700
1,600
8,500

1(1)

1,150

10,000

20,300

5

1,500

10,300<new)2N
10,300<new)2

Pure Oil1

42,400

None

22,500

.

...

'

5

None

Lead

Products

1

3,000

_

_

3,200
4(1)
9,625
2
2,200
2(1)
8,900
4(l)(new)23,200
3
2,000
4(1)

Merck and Co.

Smith, Kline and French

16,400

3

4,800

3

22,500
14,600

2(1)

4(4)

16,855

_

3(3)
4(4)

None

Gas

Colorado Interstate

Columbia Gas System

Pacific

Natural Gas 4

1

None

Gas

Pioneer Natural

1(1)

15,000
10,500

None
1,000

Lighting

Peoples Gas Light5

Republic Natural Gas
Tennessee Gas Transmission

None

None

Brooklyn Union Gas

None

None

Northern Illinois Gas

None

None

Northern Natural Gas

None

None

Oklahoma Natural Gas

—

None

30,700

None
1
None

5,000

1

None

None

25,400

3(2)

11,270
7,000
6,500

2(2)
2
2(1)

Public Utilities
Electrical Equipment

4(1)

11,500

Motorola

6(1)

23,700

Radio

5,700

4(1)

None

None

3,500

2(2)
None

None

None

None

1

Consolidated Engineering
Electric

Haze I tine

—

Philco

Stromberg-Carlson

1

500

2

5,500

2

11,000

...

Westinghouse Electric

57,700

• ■

ELECTRONICS
as

You

an

a

300

2

diversified group

of electronics securities

2,834

2

through

the shares of

TELEVISION - ELECTRONICS

FUND, INC.

dealer

your

investmeet

Fidelity-Phenix

4(3)

800

Manufacturers Life

2

Lincoln National

Northwest

3

7,100

Pacific

2(1)

7,500

Seaboard Finance

5,500

Traders Finance

104,000
None

Insurance

Life

1,500

2

Life

Fire

2(1)

Ins.

of

Can.

Finance Corp..

28,645

Kansas

4,300

Middle

1

None

None

None

None

Travelers Insurance

2

2(1)

1,450

Gerber Products

1,100

Swift

37

NAME

..

and

Co...

_

4(4)

20,500

2(1)

1,800

None

None

Shovel

Combustion

._

_

..

Engineering

...

_

None

None

None

None

None

None

None

None




None

None

United Shoe Machinery

None

None

Worthington Corp.

None

None

None

6,400

None

None

None

1,400
None
31,000

——

Light

KD

None

1

None

4(3)

J22,000(ncw>2
\ l,600(o\d) 1(1)
16,950
2(1)
14,900
3(1)

Electric

27,600

2(1)

Virginia Electric & Power
West Penn Electric

38,000

4

16,000

3(1)

Gas

&

Radio and Amusement
2

8,800

Technicolor

None

None

2(2)

9,000

Twentieth

None

None

Id)

1,000

American Broadcasting-Para¬

Century-Fox

mount Theatres

None

None

..

Loew's

——

18,600

4(2)

11,100

2(1)

2

3,000
10,557

3(2)

285

2(1)

None

None

None

None

Railroads

None

4,100
None

1,400

-

13,300
6,000

4(1)

10,000

Norfolk and Western

3(1 ¥2)

12,800

Seaboard Air Line

6(1)

15,400

Southern

Pacific

5(1)

22,100

Southern

Railway

2(1)

10,100

Union Pacific

Great

Railway

Northern

Western Pacific

2

2
None

None

Canadian Pacific

3

None

None

Chicago, Rock Island &

2(1)

■

3,500

None

None

Louisville

None

None

Pennsylvania

and

Nashville

None

None

None
—

None

24,100
None

—

Railroad

None

None
1(1)
None
None
3(1 Vz)
None
None

None
600

Chesapeake and Ohio

6(2)

4(1)

None

3(3)

3,100

11,500

29,000

Power and

None

None

1

'

CITY-

None

Louisville

None

None

Halliburton Oil Well Cementing

Thew

Kansas

None

__

_

Gulf States Utilities.

None

Machinery and Industrial Equipment

6,800( new Caterpillar Tractor1

3(1)

None

None

None

Power._

Light1

None

None
None

Light—

Consumers Power

Florida Power and

None

None

None

Electric and

None

None

None

10,300
9,000

(old)

1

Transamerica Corp.
_

Savannah

None

None

Public Service of Colorado 6

8,950

None

No»e

Utilities

2(2)

None

None

South

Puget Sound Power and

None

None

City Power and Light 5—

1,480
4,700

1

.

Utilities

3

3

10(3)

Corporation 6—_

General Public

3

None

...

_

Florida Power

None

_

Corp., Ltd. "A"

17,500

None

Bancorporation

Maryland Casualty
National City Bank of Cleveland

115 Broadway

New York 6, N.Y.

ADDRESS

Co...

General

4

4(1)

FoDd Products

MANAGEMENT CORP.

,

Co...

Central

2(1)

-

TELEVISION SHARES

135 S. La Salle St.

Finance

Insurance

Connecticut

mail coupon to

or

Chicago 3,111.

Boston

Guaranty Trust Co

None

booklet-prospectus about the

Company from

Beneficial

29,700
1,860

5(2)

Get the

1,500

2(1)

Investment Medium?

invest in

can

2

29,200

4(1)

Tel

&

Southwest Corp

and

4(1)

27,000

Financial, Banking and Insurance

Have You Considered

American Tel.

2(1)

2(2)
2,800
6,400^^^2
26,000
4(3)
10,000
3(1)

Corp.
Minneapolis-Honeywell1

900

1(1)

2,200
18,400
34,500

—_

'

4(1)

10,300

Corporation

General

1

4,000

Sprague Electric

1,500

2

Pacific

22,800

2(1)

27,900

4(Vz)

60,300

2(2)

32,000

2

Volume 182

Number 5454

The Commercial and Financial Chronicle

...

Sold

—Bought—

Continued

No. of

No. of

No. of

No. of

Trusts

Shares

Shares

Trusts

3(1)

33,000

None

None

None

None

Railroad

3

A.C.F.

Brake

Shoe

Pullman, Inc.

11,700

'

■

,

•

■

initially

Retail Trade
Allied

2,200

None

None

Stores

to

three

Intyre

Ford

also

were

the

were

Motor

acquired

Canada

of

by

was

trusts

two

and

Purchase

building

number of funds each made

5,500

Associated

None

None

initial

7,500

Gimbel Brothers

None

None

Auto-Lite and

3(2)

9,000

May Department Stores

None

None

well Spring arid Axle.
Over-all
selling was unusually light, repre¬

sales.

sented

of

17,700

Montgomery Ward

14,900

_

None

None

American Stores Corp

None

None

W.

None

None

Safeway Stores

Grant

T.

i

14,400

2(1)

12,900

3(2)

13,400

4(1)

and

Tires

33,500

6

Steels

Cleveland-Cliffs Iron

19,500

3

Harbison-Walker

2,462

3(2)

Inland

19,700

.2

None

Iron

None

3(3)

22,500

Jones and Laughlin—

3(3)

10,700

McLouth Steel

19,700

Youngstown Sheet and Tube

21,300

Bethlehem Steel

2,300

Republic Steel1

4,300

there

Lead and Pabco Products.

of

2(1V2)

4

chases

2(1)

•

'

v

I

..

••

•

10,000

.

.

'

'

.

1

—

None

None

26,700

3(%)

Excludes

shares

received

Sulphur and
4

27,600

5

Part

6

shares

in

exchanged
in

for

2

Oil

2

in

1

Purchased

split-up.

/

r

,

excluded;

changed

name

from

Union

:; 1

purchased

with

1

split-up

through

purchased through rights.

NOTE—This

for

merger.

rights.

Basis:

rights.

Basis:
1

1

Basis:

1

for

of

funds

survey

for 10.

by

,

.

of

63

Open-End

Portfolio

Net

Investment

Companies:

Balanced Funds
Stocks

Funds

_

_

__

Closed-End Companies

Totals

Purchases

or

of

Sales

shares.

It

Bought

Sold

8

5

10

23

18

3

9

30

3

6

29

14

1

;

•

Total

10

Q

20

—

the

all

made

state

Continued

regulated

the

selling,

totaling

the

investment

the

credit

be

shares

in

INC.

to

Prospeftu/ from

shares

SOVEREIGN

22,500

INVESTORS

Four

added

of

were

A MUTUAL INVESTMENT FUM»

Prospectus

man¬

total

a

of

Inter¬

Colorado

Pioneer

also

GEORGE

Gas,
sue,

Reynolds Met¬
on

also

three

sold

was

managements,

balance

while

off

were

rights.
the

BAILEY

an

&

General Distributor
RIttenhouse 6-9242

de¬

one

Natural

Natural

Gas

and

Illinois Gas, the last

is¬
having been spun
by Commonwealth Edison,
i
of

-

Interest

Prospectus from

In

your

Merchandisers

Montgomery Ward

investment dealer

PHILADELPHIA

or

was

192

FOUNDED

course,

3, PA.

the fa¬

vorite merchandiser with six

man¬

agements adding a total of 17,700

shares, two making
ments.

by

Mc-

A

new

commit¬

couple of sales equaled

14,900 shares. Anticipation of new

63

M
p

VI.

(Wumweaftli

V.

INVESTMENT

Fundamental Investors, Inc.

A balanced mutual fund
over

300

common

provide reasonable current

of long-term growth of

possibility

principal.

A

ing

A mutual fund
common

Diversified Growth Stock Fund, Inc.

FUND

open-end,

mutual,

sified

investment

full

cretion,

STOCK

management

common
Information
from your

investing in diversified
—

stocks of well-established

—

—

—

or

and

Houvd and Distributed by NORTH AMERICAN

these

mutual

local

investment

funds

through

firms,

or:




Russ Building

INCORPORATED

Elizabeth

•

SECURITIES

Prospectuses available from Investment Dealers

or

115

NAME

the ab«ve
ADDRESS

3,

New Jersey

^

^

„

"Investment tympany Managers since 1925"

i

CITY

WhaiMala

loprasentolhras: Boston'Chicago* Dallos* Los Angeles* New York* Washington, D.C.

— __

Broadway

New York 6, N.Y.

COMPANY

San Francisco 4, California

— —

SHARES

MANAGEMENT CORP.

long-term growth of income and principal.

HUGH W. LONG AND COMPANY

prospectus

investment dealer *

mail coupOrt to

Chicago 3, III.
on

dis¬

stocks.

TELEVISION

companies selected for the possibility of

diver¬

company

currently emphasiz¬

135 S. LaSalfe St.

Prospectuses available

gf*

HUDSON FUND, INC.

with

Fund, Inc.

'*!NT

investing in

income with conservation and the

Diversified Investment Fund, Inc.

Vk

COMPANY

bonds, preferred and

stocks selected to

Manhattan Bond

/

popular

w

iiOfi

CO.

BLDG., PHILA. 10, PA.

Brooklyn

least

Oklahoma

Renewed

to

als

of

was

Northern

Northern

can

the fund investor.

Gas

A.

845 LAND TITLE

offering
previously

on

request

upon

equaling 25,400 shares/ Also
on
balance,
each .by
two

funds

by

nor

Hi.

Republic

also

issuance

sold

note

through

dealer or

your

Selected Investments Co.
135 S. La Salle St., Chicago 31

crease

60,600
to

offset

company

passed

30

page

american

acquisitions —
Natural

new

in

portfolio eliminations and

two

company

be

on

issue in the natural gas group, two

ordinary

an

investment

cannot

pur¬

Selected

favorites.

quarter's

newcomers.

Gas.

Union

bore

and

of interest

the shareholder in

to

two

restraining the pro¬
displayed a

purchases

agements

that the dividend return of Nickel

Government

Companies
Matched

decreases

equaling
is

found

during the previous

enthusiasm

portfolio

(investing primarily in domestic
companies) is less than if he held
this stock outright since the 15%
tax
withheld
by the Canadian

SUMMARY
Excess

portfolio

As

the major

ditions to Lone Star Gas

non-

Nickel

brunt of concentrated

two

covers

sponsored

International

funds.

Brothers

chasers.

com¬

Stores

by three trusts, two
acquisitions,
and

new

Gi.mbel

investment

Department

also liked

making

Gas, while three of the four ad¬

both

Mining and Smelting and Kennec-ott
each
were
bought by two

eliminations

63
investment companies,
but purchases or
the same management are treated as a unit.
.For example the four funds sponsored by J. and W. Seligman and Co. are
considered as having the weight of one manager.
Individual portfolio changes
in the Loomis-Sayles Fund are not surveyed.
«ales

May

metal favorite, five pur¬
was new all around, as
totaling 14,900 shares, two mentioned in this
survey, while
representing initial acquisitions;, three
managements also acquired
there was a complete absence of
9,500 shares of Columbia Gas Sys¬
selling.
Aluminium, Ltd., which tem.
Pacific Lighting
and Ten¬
had been rather heavily purchased
nessee
Gas
Transmission
were
with rights earlier in the year, in¬ each
liked by a couple of trusts
terested four new buyers with a
while purchases of Peoples Gas
total of 8,970 shares.
Two sales Light and Coke and Consolidated
equaled 5,500 shares. Hudson Bay Natural Gas were stimulated by

the

10.

for 10.

Dry
by four

panies.

favor, al¬

of

chases

FOOTNOTES
received

increase

appeared

one

in

26,800

the

was

still

made

shares

Fe.
Pasco

again

Four

were

by a couple of investment
companies. Opinion was split on
de

50%

a

ferrous

:

\

Newport News Shipbuilding____

Shares

Other
rails
sold,
funds, were Louis¬
Nashville, Pennsylvania

two

Cerro

Tobacco

per¬

a

favorite,

quired
was

Stores,

and Asso¬
Goods were each ac¬

few years ago.
Nevertheless sev¬
eral
initial
commitments
were

sold

Santa

in

nounced

Island.

were

was

factors

12,800 shares.
Four trusts were responsible for
the liquidation of 27,900 shares of

fic and Western Pacific

over

once

ducers

totaling

by

Allied

fund

though uncertainty over the regu¬
latory status of independent pro¬

was

2(2)

Gillette

3

Seaboard Air Line

shares

meet with management

Great

3,800
2,000

issues

bought

and

ville and

Misscellaneous

'2

each

four

Western

and

sistent
ciated

purchase transactions, natural gas

five

by

and Canadian Pacific. Union Paci¬

.

shares

while

the

3(2)

American

Excludes

during

acquired

was

Northern.

also

With

liked by three managements, par-

Tobacco

1

the

4(1%)

\

5,000

carrier

11,800

.

sales

been

47,100

Textron American Inc

1(1)

had

27,300

Cone Mills

17,000

offsetting

latter which

Norfolk

each

None

7,000

the favor¬

were

three

were

the

Rock

None

None

Pacific

American Viscose

Celanese Corporation

3(1)

a total of
110,000 shares, had
adding to its substantial block
during each of the current year's

new

rails, six purchases of the
totaling 13,300 shares (two
of which represented initial ac¬
quisitions) and a like number of
Sopac amounting to 15,400 shares;

trusts

8(2)

17,200

None

3(2)

with

5,900 shares of American Radia¬

and

and

first three months of the year. A
total of 22,100 shares of Southern

1

of individual purchases or

of which made

Ohio

and

favorite

None

12,300

None

None

ap¬

should be somewhat in "the know"

Three trusts bought a total

commitments)
of Bridgeport
Brass. A couple of purchases were
made
also
of
Dragon
Cement,
Flintkote, Lone Star Cement, Masonite Corporation and MerrittChapman and Scott.
The same
number
of
ftands sold National

Chesapeake

None

Textiles

2(1)

has

policies

new

tor, 22,000 shares of Glidden (two

Favored Rails

Railway

300

4(2)

None

tion as

by only six transactions.

1

None

None

5
None

None

80

Steel

Interlake

13,000

None

Refractories-_

The same might be said of
lightness of group concentra¬

the

former

Goodrich

the

shares

year.

2(2)

Southern

3(2)

Electric

additions to Rock¬

ite

Rubber

500

in

commitments

in

construction

during the second quarter of this

4(1)

«(2)

and

parently whetted management ap¬
petite.
Affiliated
Fund, which

quarters.

transactions

and

fairly well scattered as they
generally throughout the list

*2(1)

Goods_____

eliminated

was

from two portfolios.

four

same

Dry

Porcupine

while six new holdings
portfolio additions of
Chrysler totaled 166,400 shares.
and

i

,

committed

others,

None

None

''

•

4

blood

29

been

American

5,500

4(2)

27

page

Funds Like Motor And Oil Stocks

Equipment

Industries

jrorn

(589)

,

The Commercial and Financial Chronicle.

(590)

30

Continued from page

popular issue for several
was
currently sold on

29

And Oil Stocks

Funds Like Motor
period, Safeway was the least pop¬
ular issue among the store stocks,
lour sales totaling 13,400 shares,
one of which represented a port¬
folio elimination. W. T. Grant was
sold by three trusts and American
Stores by two.
Purchase of steels continued at
the

almost

pace

same

the first quarter

during

as

of the year with

buying concentrated in other is¬
than the big three.
Three

sues

totaling 22,500
made in Jones and

commitments

new

Thursday, August 11, 1955

..

N

40% over the previous quarter.
Transactions were well scattered
with three purchases each of Mar¬

quarters,

Company

In

Selling

chased

Aircrafts

up

of

two

St.

centered
six

Corporation and
Regis Paper.
Selling

and Mead

athon

International

on

portfolio
shares.

Paper,

totaling

decreases

St. Lawrence Cor¬
poration also was sold by a couple
of trusts.
Among the machinery
and industrial equipment shares,
8,800

with

buyers had the slight edge
four
managements making

new

American

and

Telephone

Three

and

balance, Telegrapn eaeii were acquired oy
two managements. Fioriaa Power
three sales equaling 24,000 shares.
Corporation, Kansas City Power
Opinion was divided on Eastern
and
Light
and
Public
Service
as it was for the group as a whole.

Aircrafts

sold

were

bal¬

on

they had been during the
three months.
Sperry
(some placed it before the merger
with Remington Rand in the elec¬

ance

trusts

of Colorado were pur¬
rights.
Three

from

eliminated

the

Power from their

classification)

tronics

inated

was

portfolios

four

from

elim¬
and,

lightened in two others.
Boeing
was
sold by five managements,
Douglas by four and Lockheed by
three.
Purchasing was concen¬
trated

one

on

Consumers

portfolios while
Vir¬

fourth lightened holdings.

a

were

with

favor

of

out

manage¬

Electric;

container

American

of Gulf States Utilities

stock

and

Louisville Gas and Electric.

in

Interest

in

was

holdings totaling 37,-

to

Continental Can, how¬

found only one purchaser
block.
Corning Glass Works was sold by
three managements, sales equal¬
ing 11,600 shares. " Opinion was
mixed on the beverage and liquor
who acquired a 10,000 share

stocks, with

chemicals

the

out

division,
well bought,

glass

ever,

Chemical Interest Ebbs

issue—North Amer¬

Can

800 shares.

of

disposed

evened

and

three initial commitments and one

Light and West

two

about

transactions

Three funds sold shares of

Kansas Power and
Penn

four

of

companies, the last named
completely eliminated
holdings. Although over-all

ginia Electric and Power was also, addition
ments.

2,800 shares

Biockson, Kbdak and
each disposed of by

issue being

through

as

previous

Victor
two

sold

trusts

duPont and

de¬

ing

no

selling

nor

concentrated buy¬
balance. On the

on

acquisi¬ creased somewhat from that dur¬ other
hand, concentration was ap¬
shares were
tions amounting to 15,100 shares.
Well
ing the first three months of the parent in some amusement shares.
Laughlin and a like number of
But
by far the least popular
American
20,500
shares.
An
initial
purchase
Broadcasting - Para¬
year
with management opinion
initial
purchases
of
McLough
and two portfolio additions were group during the quarter, as it had divided.
Interchemical (formerly mount Theatre was lightened in
Steel equaled 10,700 shares. Two
also made in the new split shares been during the first three months
two
classified
under
printing),
was
portfolios
and
eliminated
first-time acquisitions and two ad¬
of
Caterpillar
Tractor.
Thew of the year, was the electrical purchased. 'by three funds and from two others with sales equal¬
ditions of Youngstown Sheet and
Westinghouse Elec¬ Hercules Powder and Tennessee ing 18,600 shares." >A couple of
Shovel was liked by two trusts. equipments.
Tube amounted to 19,700 shares
United Shoe Machinery was elim¬ tric with 10 sales displaced Gen¬ Corporation each by two. Spencer funds also sold Loew's but two
while three purchases each were
eral
Electric's
distinction for the
inated from three portfolios while
Chemical was the least popular new
purchases
were
made - of
made
of
Cleveland-Cliffs Iron,
Combustion
Engineering
was first quarter as the most heavily issue in the group, two portfolio Twentieth Century-Fox>- Techni¬
Harbison-Walker Refractories and
liquidated
issue
in
the
classifica¬
color also was liked by two man¬
eliminations a.m a nKe nunioer oi
Inland
Steel.
Two funds liked lightened in a like number of lists.
Total shares sold equaled
Worthington was eliminated irom tion.
decreases equaling 17,100 shares. agements.
v
Interlake Iron.
Profit taking in
57,700
shares,
three
blocks of
one portfolio and decreased in an¬
Bethlehem in eight portfolios to¬
Halliburton Oil
Cementing, for a total of
in

commitments

Aviation—six

ican

new

;

•

.

;

taled

but five off¬
equaled 21,300

shares,

12,300

purchases

setting

lightened 17,Republic's new split

Four trusts

shares.

200 shares of

while transaction in Big
Steel were fairly evenly divided.
shares,

Although

on

bal¬

transactions picked

selling

ance,

favored

be

to

continued

and pulp issues

paper

Pfizer

in the

the standout

was

drug division, four managements
acquiring a total of 25,800 shares,
one making a first-time purchase.

Lilly "B," McKesson and RobSterling Drug each found

Lii

bins and

Eliminations of

purchasers.

two

Colgate-Palmolive from four port¬
folios equaled 16,855 shares while
sales each of
Merck
and
Smith,
Kline
and
French. ' Rail
equipments were
there

I
FUND

A MUTUAL

INVESTMENT

three

were

with

bought

conviction,

some

a

purchase transactions
stacking up against two lone sales.
Pullman was the favorite, two in¬
itial commitments and two port¬
folio
additions
totaling
11,700
shares.
Three
purchases were
made
of
A.C.F.
Industries and
American Brake Shoe. The office
total

16

of

GROWTH

Remington Rand, two

on

portfolio eliminations and a like
totaling 15,-

:

Bank

issue

Insurance Activity

and

DISTRIBUTING CORPORATION
40 Broad St.

120

Broadway

•

•

Boston, Maw.

New York 5, N.Y.

the

was

popular

banking group, five

the

in

purchases amounting to 104,000
shares, two of which were port¬
Guaranty Trust

folio newcomers.

of New York and Northwest Ban-

corporation were each liked also
by two managements.
Not so
popular was the* National City
Bank
of
Cleveland, which was
dropped from two lists and light¬
ened

financial

feature

coln

of

the

National

commitments

Industrial

and

•••••••••

Capital Accumulation Plan
♦

Income Plan

I

I

would

addition

one

throughout the group with selling
concentrated on no one individual
issue.

Sherman St.

bought Swift on balance, one mak¬
a

Viscose

the

was

ular

was

managements, were the Boston
Company,

Connecticut

Life, Manufacturers Life
of

Company

(mentioned earlier
to

Canada

as a newcomer

portfolios) and Fidelity-Phenix

Fire

Insurance Company.

transport

was

favored

the only air

by

the

trusts

during the quarter, six purchases

American
Airlines, which had been the most
equaling 29,750 shares.

of

ers

such

Production

carriers.

in

development
merchandise business through¬

of

the

out

spurred

growing steadily in
population
and
industry.
This
growth has meant an expanding
is

non-coal

of

C.&O.

Of

not touch above the

Establishment

a

1947,

since

1938 level of

only 348.5 million. The downtrend
in usage of ,the "black diamond"
has been due to a combination of

such as steady
growth of competitive fuels, im¬
portations", of. cheap Venezuelan

circumstances,

Territory served

system.

C.&O.

by

source

trend

Pere Mar¬

traffic of the

and

quette

when
output reached a peak, of 630.6
million tons.
In 1954, production
receded to only 392 million tons,

declining

by another while Cone
also dropped front two; fiM ubti^or;? Atlantic; V Seaboard

the

in

growth

traffic

is

Lake

modern

tries

has also been

in

*

the

fleet

of

Michigan
977

of

seven

ferries."

new

indus¬

since 1945
important factor

lines

system

on

importance
merchandise

of

C.&O.'s

for

revenues

particular

an

growth

of

merchandise

tonnage.
Over the years, C.&O.

has

man¬

aged to show higher-than-average

profit margins. In 1954, the road
Textron American was t markets, replacement of railroad
brought down to net railway op¬
disposed ofVby^one steam power with the more effi¬
erating
income, - before
income
management and decreased in the cient diesel engine, and the tre¬
taxes,
21.1%
of each., revenue
holdings
of another..
Rubbers,, mendous improvement in boiler
$1, vs. 11.7% for Class I railroads.
upon which opinion had been di- - efficiency.
Over the years, engi¬ A
contributing factor to the road's
vided earlier in the year,> were, neer^ of; •' the
manufacturers of
high profit margins is the expen¬
currently sold on balance;
Con-j: electric power: turbines, such as. diture of $483 million for diesels
centrated
selling, centered " on General Electric, have improved and other
improvements in the
Goodrich,
six
trusts lightening: the design and boiler efficiency of 10
years 1946-1955.
Earnings in
these
massive
engines so that the
33,500 shares.
:
recent years have reflected some¬
electric
utility industry today can what the influence of tax defer¬
Both
agricultural
equipments
and tobaccos, which had been sold obtain greater efficiency out of ments
resulting from
five-year
one-quarter
of a ton of soft coal amortization of part of the cost of
on
balance
during
the
March
than they formerly got out of a
quarter, now found some buying
certain facilities certified a.3 vital
ton of coal.' * ; :
'
'
;
:*
favor, as mentioned previously.;
to- the national defense. In the five
Seven funds added a total of 31,Because of the downward trend years
1950-54, such tax defer¬
-

,

,

.

600

shares

International

of

Har¬

27,750 shares
A couple of others sold

Of

and

coal

the

new

threat' of

reactors using nuclear en¬

vester and six bought

power

of Deere.

ergy, railroadsv whose traffic
been heavily weighted with

ican

on

Amer¬

Tobacco, three managements

purchasing
two

concentrated

a

making

Divided
utilities

total of 7,000 shares,
new

commitments.

opinion

found

the electric
buyers favor¬

on

the

Central and Southwest Cor¬
poration and Middle South Util¬

ing

has
this

commodity have increased their
efforts to obtain greater diversity

Chesapeake & Ohio has

of traffic.

especially successful in this

been

connection,
the

is

though

even

nation's

of soft coal.

still

it

leading originator

For the first time in

from merichandise traffic exceeded receipts
ities, four purchases being made
from coal and coke. It is true that
of each. Puget Sound Power and
demand and consumption of bitu¬
Light was liked by three funds,
minous coal declined more sharp¬
Savannah

while

Power,

General

Electric

Public

its

history,

revenues

and

Utilities

ly in 1954 than most commodities,
because of the contraction in steel

so,

EATON & HOWARD

EATON & HOWARD

BALANCED FUND

STOCK FUND

'

Managed bp

EATON

&

management

HOWARD

interesting

BOSTON

BOSTON

ESTABLISHED ltU

133 Montgomery

Street

.

SAN FRANCISCO

Prospectuses from

your

Investment Dealer or the above.

C.&O. for a
attempting to
traffic

base.

document which

virtual mine of infor¬

a

about

mation

the

affairs

of

the

"While continuing to
hold its position as the nation's
leading
carrier of
bituminous,
C.&O. .also has pursued vigorously

road)
24 Federal Street

Even

According : to the supplement to
the company's 1954 annual report
(an

INCORPORATED

of

long time has been
broaden the road's

contains

Address,

a

.

.

.

policy of traffic diversification.

The




this commodity, has been

activity, heavy stockpiles of coal
and the scrapping of some 3,253

like to receive a

JL

with

so,

the already extensive mer¬

pany

chandise

portfolios.

fif investment plans.

City

nine

of bituminous coal has been

un¬

was

Insurance

last

highly encouraging to stockhold¬

47,100

was

or

ent upon

four
managements
shares. JCelanese
eliminated by two trusts and

Mills

the

over

consequent
higher traffic, revenues and earn¬
ings for railroads heavily depend¬

group,

lightened

industry

months

purchase.

new

American

Corporation. .Buying of to¬

General

coal

popular textile issue in an unpop¬

baccos

Colorado

Name

funds

two

contrast

By

Oliver

Booklet-Prospectus
about

Electric.
Although sellers held the as¬
cendant in the food stocks, liqui¬
dation
was
well
distributed
torola and Sprague

Chesapeake & Ohio Railway
The recovery in the bituminous

steam locomotives last year.

Principal Underwriter
Denver 3,

10,300 shares.
Four fifnds were
also kindly disposed toward Mo¬

.

fif management corporation
444

Lin¬
initial

three

shares.

-

United Airlines

Systematic Investment Plan
with Completion Insurance

insurance

quarter was

Life,

1,860

Insurance

Systematic Investment Plan

equaling 23,700 shares; partially
offsetting were four sales totaling

Also

of

Railroad Securities

Hazeltine Corporation
and
Minneapolis - Honeywell
(new
split shares) each by two.
Radio
Corporation was the best-liked is¬
sue
in the group, six purchases
ing,

thought well of, each by a couple

equaling

iiUM I*.

The

another.

in

of by

disposed

completely

Transamerica

DAVID L.BABS0N

were

Stromberg-Carlson by

Consolidated Engineer¬

and

three

Corporation
equaled
37,000 shares.
Selling was con¬

number of decreases

Protpectut from your dealer

each

selling

000 shares.

,>

Philco

four trusts,

ing

centrated

FUND

inations.

equipment group was featured by
three new purchases and three ad¬
ditions of Internationa^ Business
Machines.
Three acquisitions of
Burroughs

,

represented portfolio elim¬
General
Electric
and

which

other.

..

Pere

Marquette

merger

in

,1947 brought to the enlarged com¬

have

ments

aggregated $3.76

per

share, out of total share earnings
of $25.77.
In order to offset the
these

of

benefits

tax

deferments

early future years, vfhen they
will be lost, C.&O. has embarked
in

on

program

a

$25

by

for reducing costs

$30- million

to

Jan.

by

1, 1957.
Meanwhile, with coal and mer¬
chandise

tonnage

1955

gains,

recording large

earnings

may

reach

12 months
ended June 30, 1955, the road re¬
levels.

record

In

the

ported common share earnings of
$6.48. It would not take much im¬

in

provement

the

last

half

for

earnings to approximate the $7.00
share level. With working capital
in

of $44 million on

excess

April

1955, and peak of the heavy
improvement expenditures passed.
Wall Street analysts would not be

30,

surprised if an extra dividend
were
declared around the year-

around 52
rather gen¬
erous
return of 5.77% from the
regular
$2.00 annual dividend
At

end.

the

recent levels

stock affords the

Declaration of an extra

would, ol

eral.

make the return more lib
C.&O. has an excentionallj

good

dividend

course,

have been

record; dividend,
since

paid in everv vear

1899 except

1915 and 1921.

Number 5454

Volume 182

The

Indications of Current

week
Latest

AMERICAN

STEEL

AND

IRON
steel

Indicated

Week

INSTITUTE:

or

or

month available.

month ended

Previous

Month

Year

Week

Ago

Ago

on

64.0

91.2

*86.9

§90.8

(percent of capacity)

operations

following statistical tabulations

latest week

Business Activity
Bteel ingots

1,525,000

2,202,000

*2,098,000

§2,192,000

(net tons)

and castings

Slab

zinc

smelter

output—dally

(bbls.

average

output

Kerosene

output

Distillate

fuel

average

(bbls.)—
(bbls.)

oil

6,615.500
(17.577,000

7,620,000

7,499,000

6,827,000

July 29
July 29

26,447,000

25,964,000

25,683.000

23,326,000

(bbls.),

__.—

,__

output (bbls.)

2,217,000

1.921,000

2,026,000

2,061,000

July 29

11,008,000

10,871,000

11,257,000

10,294,000

of

July 29

7,790,000

7,857,000

7,754,000

7,419,000

New

July 29

157,005,000

157,678,000

159,611,000

158,402,000

July 29

32,000,000

31.206,000

29,899,000

31,368,000

July 29
July 29

115,936,000

112,392,000

99,981,000

100,439,000

45,457,000

45,260,000

44,799,000

54,651,000

6,610.550

6,254,950

finished
Kerosene

(bbls.)

Residual

•

oil

fuel

ASSOCIATION

gasoline

at

oil

fuel

Distillate

*■'

unfinished

and

(bbls.)

at

BUILDING

(bbls.)

at

(bbls.)

at

:jlJ.

_____

freight

Re/enue

freight received from

CONSTRUCTION

ENGINEERING

July 20
July JO

of cars)

(no.

795,771

736,433

696,734

683,617

652,132

644,871

637,077

569,764

(tons

U.

Total

VALUATION

INC.—215

DUN

—

construction

—

construction

Public
State

and

municipal

Federal

OUTPUT

COAL

England

East

Aug.

4

$317,693,000

$366,197,000

$378,851,000

$368,623,000

Aug.

4

191,204,000

225,944,000

200,559,000

241,014,000

Aug.

4

126,489,000

140,253,000

178,292,000

127,609,000

Aug.

4

111,666,000

126,253,000

96,737,000

105,469,000

Aug.

4

14,823,000

14,000,000

81,555,000

22,140,000

___!

Atlantic

(tons)

9,610.000

*9,490,000

2,240,000

7,517,000

July 30

524,000

406,000

81,000

511,000

AVERAGE

SYSTEM—1947-49

=

98

94

98

87

*♦10,925,000

10,727,000

9,759,000

9,059,000

j

__•

Central

INDUSTRIAL)

—

DUN

Outside
BUSINESS

*

refinery

Export

Lead

tin

(St.

Louis)

at

A*—

DAILY AVERAGES:

4

201

213

Baa

Railroad

*.

Public

Group

—

Utilities

Industrials

Group

Group

5.174c

4.779c

4.801c

Aug.

2

59.09

$59.09

$56.59

$56.59

Aug.

2

$43.33

$41.50

$36.50

$27.83

2

5.174c

Aug.

3

35.700c

35.700c

35.700c

29.700c

Aug.

3

39.050c

36.275c

35.950c

29.500c

Aug.

3

97.375c

93.000c

95.250c

95.000c

Aug.

3

15.000c

15.000c

15.000c

14.000c

Aug.

3

14.800c

14.800c

14.800c

13.800c

Aug.

3

12.500c

12.500c

12.500c

11.000c

95.73

100.36

9

103.1b

108.34

108.70

110.52

Aug.

9

111.44

111.62

112.13

115.63

Aug.

9

109.79

109.97

110.34

112.75

Aug.

9

108.16

108.52

108.88

Aug.

9

103.30

103.47

103.97

104.14

.Aug.

9

106.56

106.92

107.44

109.24

.Aug.

9

103.70

108.88

109.06

110.88

.Aug.

9

108.88

109.24

109.97

lli.b2

9

2.90

.Aug.

9

3.27

.Aug.

9

3.09

Aug.

A4 _III——HI——IIIIII—IIII

9

Aug.

9

,

,

INDEX

Orders received

.Aug,

9

3.23

■Aug.

9

403.7

(tons)

3.24

2.96

2.82

3.24

3.14

3.08

3.05

2.87

(tons)

3.17

3.15

3.02

3.25

3.23

3.16

.

v

"

3.50

3.31

3.21

3.22

3.12

3.21

3.17

3.08

403.6

402.7

430.5

339,564

256,223

279,303

237,843

99

94

96

90

602,944

607,016

582,243

390,265

280,062
>

.July 30
.July 30

3.51

3.34

3.23

264,622

281,121

July 30

.

—

OIL, PAINT AND DRUG REPORTER
1949 AVERAGE = 100

\

105,748,144

89,656,737

77,107,380
45,487,036
20,455,484
93,670,999

$687,306,183

$563,821,717

$523,169,936

149,080,484

65,782,634

39,149,744

$538,225,699

$498,039,083

$484,020,192

200

168

PRICE INDEX—

107.03

106.78

106.75

106.81

5

-Aug.

sales by

dealers

—

purchases by dealers (customers' sales)—
orders—Customers' total sales

Number of

^

.

—July

J6

sales

Customers'

short

Customers'

other sales

Ju)y

sales

by dealers—
sales

July ^

Number of shares—Total

Short sales

—July 16

sales

Other

„

purchases by dealers—

Round-lot

Number of shares

1.264,587

1,313,207

1,160,812

$75,913,434

$67,099,157

$51,794,917

1,115.463

1,201,098

1,212,106

1,175,227

6,364

8,584

4,257

7,592

1,109.099

1,192,514
$70,324,594

1,207,849

1,167,635

$59,838,044

$49,653,011

EXCHANGE

Total

AND

ACCOUNT

FOR

256,540

241,010

322,610

351,150

256,540

241,010

322,610

351T50

round-lot

MEMBERS

'

359,310

441,490

578,240

(BUREAU

Oven

July 16
July 16
July 16
FOR ACCOUNT OF MEM¬
SPECIALISTS:
stocks in which registered—

TRANSACTIONS
of specialists in

$13,888,000

$14,093,000

$18,454,000

July 16
July 16
July 16

sales

Total sales

3,254,000

2,864,000

4,878,000

9,564,000

10,874,000

11,722,000

4,702,000

4,885,000

4,514,000

5,259,000

1,998,000

2,045,000

$36,667,000

$34,714,000

$41,613,000

MINES)—Month of June:

(net

•6,426,747

4,652,500

6,286,982

4,618,000

153,441

*139,765

34,500

2,191,324

2,346,041

2,973,037

22,275,000

tons)_

at

of

end

month

tons)

(net

22,284,000

22,728,000

18,335,000

18,302,000

19,332,000

10,867,000

8,937,000

10,216,000

443.6

446.8

417.0

hours per spindle In place June

DEPARTMENT
SERVE

6,155,087
6,001,646

tons)

COTTOIS SPINNING (DEPT. OF COMMERCE):
Spinning spindles in place on July 2
Spinning spindles active on July 2
Active spindle hours (000's omitted)
July 2

SALES

STORE

SYSTEM

—

Month of July:

(FEDERAL RE¬

1947-41) Average=100—

T

METAL

PRICES

(E.

M.

&

York

Common, New
Common,

St.

((Antimony,

29.570c

it

(per

pound)

14.000c

14.800c

13.800c

£102.815

£95.693

£105.601

Boxed

York

New

15.000c

14.800c
£105.940

I

£102.702

•

£94.969

31.970c

31.970c

28.500c

28.500c

28.500c

29.000c

29.000c

29.000c

31.970c

Antiomny (per pound) bulk, Laredo
Antimony (per pound) Laredo-i
Platinum

$82,540

$79,077

12.500c

12.232c

£91.226

£91.398

£91.214

£89.955

£78.051

$1.70000

$1.70000

$1.70000

$1.70000

$1.70000

$1.70000

Zinc

refined

ounce)

(per

(per pound)—East

St. ,Louis__

fCadmium

Silver,

.

pound)
(per pound)

(per

gCadmium

97%
Sterling

and

;

(per pound)

tCadmium, refined

New

Gold

(per

$84,000

£77.563

$1.70000

$1.70000

$1.70000

$2,60000

$2.60000

$2,60000

Exchange—
90.488c

(per ounce)

York

77.977

72.466

$2.78977

$2.81774

96.805c

93.625c

96.577c

95.805c

price)-

U. S.

ounce,

(per pound)

Magnesium ingot

-

;—

85.250c

89.688c

78.869

$2.78494

(pence per ounce)

Quicksilver (per flask of 76 pounds)
Aluminum, 99% plus ingot (per pound)___

95.577c

92.625c

$35,000

$35,000

$35,000

$264,920

$283,269

$286,923

23.200c

21.500c

23.200c
'

28.500c

64.500c

64.500c

60.000c

$2.25

$2.25

..

May:

27,066,000

(barrels).

(at end

24,911,000

26,039,000

25,412,000

108

103

96

$875,112,392

$850,366,881

$800,531,768

644,882,624

634,896,821

623,158,776

73.69

74.66

77.84

$101,320,500

$92,976,244

$76,222,264

106,033,546

101,242,550

79,059,485

88,000,000

86,000,000

60,000,000

$87,376,958

$97,733,241

18,140,896

18,318,940

$59,613,926
18,599,442

——

CLASS

EARNINGS

I

AMERICAN

OF

23,279,000

24,993,000

23,610,000

of month—barrels)

used.

.24,847,000

29,172,000

(barrels)

mills

Shipments from

Capacity

$2.25

—

'

(BUREAU OF MINES)—

CEMENT
of

Month

pound)

(per

27.000c

28.500c

"

•♦Nickel

Bismuth

11.000c

*

ttZinc, London, prompt (per long ton)
tfZinc, London, three months (per long ton)

ROADS (AS¬
RRs.)—Month

June:

operating revenues

499,180

11,680,770

Operating ratio

13,421,980

Taxes

1,372,110

29.700c

36.339c

15.000c

(Per pound)___

Louis

tfPrompt, London (per long ton)__
ttThree months, London (per long ton)

12,922,800

1,661,730

35.700c

36.504c

Lead—

520,630

1,587,850

35.700c

,

refinery
refinery

export

13,652,030

1,473.730

88

J.

domestic

Electrolytic

321,230

14,172,660

111

109

Copper (per pound)—

11,951,880

12,273,110

116

97

QUOTATIONS)—
Average for month of July:

471,630

12,152,400

123

Adjusted lor seasonal variations
Without seasonal adjustment

Total

operating

expenses
:

income before charges
after charges (estimated)
—

Net

railway operating

Net

income

S. CLASS I
(Interstate Commerce Commission)—
INCOME ITEMS OF U.

SELECTED

July 16

purchases

Short sales

Other

81

965

tons)

(net

coke stock

of

BERS, EXCEPT ODD-LOT DEALERS AND
Total

OF

(net

coke

SOCIATION

sales—

Total sales

Transactions

80

955

liabilities-

service

Production

Total

sales

EOUND-I.OT

75

—

liabilities

Stocks

(SHARES):

Short sales

Other

liabilities

Production

STOCK SALES ON THE N. Y. STOCK
ROUND-LOT STOCK TRANSACTIONS

OF

208

914

liabilities

RAILROAD

TOTAL ROUND-LOT

number

liabilities

PORTLAND

536,000

July 16

*

1,195,232
$64,628,979

$59,622,231

July

Dollar value
Round-lot

,

,

July lo

value

Dollar

1
.1

l

,_.

Silver, London

EXCHANGE COMMISSION
(customers' purchases)—!

Number of shares

Odd-lot

BRADSTREET,

Sterling Exchange (Check)
Tin, New York Straits
§§New York, 99% min._,

EXCHANGE —SECURITIES

Odd-lot

.

number

Cobalt,

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

AND

DEALERS

22,696,406

89

Silver

■TOCK TRANSACTIONS FOR
LOT

85,854,855
44,169,443

25,504,344

132

COKE

2.46

233,721

.July 30

*

Production

3.36

•

,

ASSOCIATION:

PAPERBOARD

NATIONAL

9

—

Group

COMMODITY

&

87,613,891

47,616,727

455

Commercial

110.15

3.20

3.54

3.55

9

Aug.

.

Group

Utilities

Public

Industrials
MOODY'S

3.27

Aug.

.

Group

3.13

9

.Aug,
.

Railroad

107,649,034

121

,

.Aug.

-

116,977,846

114

Retail

'

r

88,728,632
65,365,239

116,933,940

Construction number

Electrolytic

corporate

Average

93.92

Aug.

U. S. Government Bonds

-

94.61

Aug.

AVERAGES:

MOODY'S BOND YIELD DAILY

57,641,519

87

Total

207

204

9

IIIIIIIIII—III

II

$24,706,132

113,328,935

65,978,816

499

Active spindle

U. S. Government Bonds

'

.

—

number

Beehive coke

at

BOND PRICES

MOODY'S

$33,495,976

211,868,492

of June:

Commercial service

—

(East St. Louis)

Zinc

$26,041,829

79

QUOTATIONS):

at

38,899

446

Total

at
York)

(New

57,231

number

Retail

Construction

Electrolytic copper—
Domestic refinery at
Straits

City

FAILURES—DUN

INC.—Month

Oven

M. J.

&

York

New

Manufacturing number

&

Aug.

(E.

64,056

___.

Pacific

IRON AGE COMPOSITE PRICES:

PRICES

198,027

...

[

Wholesale

6

Aug.

METAL

73,846

*48,603

.

.July 30

100

Aug.
AND

99,039

51,305

Central

West

ELECTRIC INSTITUTE:

(COMMERCIAL

70,749

♦84,458

81,713

____.

Central

Wholesale

July 30

SALES INDEX—FEDERA

DEPARTMENT STORE

FAILURES

Ago

CITIES—Month

L.

Atlantic

South

OF MINES):

S. BUREAU

(U.

Pennsylvania anthracite

■DISON

Month

&

ENGINEERING

—

construction-

S.

Private

Year

Month

of

I__

(tons)
end of period (tons)

PERMIT

Mountain

(number of cars)
connections

loaded

grades

pounds)

NEWS-RECORD:
•

of that date:;

Previous

June:

South

AMERICAN RAILROADS:

OF

all

2,000

of period

BRADSTREET,

Middle

&

Revenue

CIVIL

are as

Latest

84,415
of

Unfilled orders at

Stocks at refineries, bulk terminals, In transit, in pipe lines—

.

output

(tons

Stocks at end

6,650.250

July 29

(bbls.)

_—

output

Residual fuel oil

of

,__July 29

to stills—daily

runs

Gasoline

of quotations,

pounds)

Shipments

each)

42 gallons
"

Crude

INSTITUTE:

condensate

and

cases

July:

PETROLEUM

oil

in

or,

either for the

are

AMERICAN ZINC INSTITUTE INC.—Month of
2,0000

Crude

production and other figures for th*

cover

Dates shown in first column

that date,

Equivalent to—

AMERICAN

31

(591)

The Commercial and Financial Chronicle

...

RYS.

281,720

258,810

309.140

284,970

1,336,370

1,327,250

1,383,430

1,123,850

Net

1,618,090

1,586,000

1,692,570

1,408,820

Other

326,880

295,040

323,360

371,130

Month

of

April:

railway operating income
income

*

Other transactions Initiated on
Total

the floor—

July 16

purchases

-July 16
July 16
July 16

Short sales

sales

Other

.

Total sales

Other

purchases

Short sales

33,600

9,330

339,320

404,010

324,010

333,190

372,920

423,340

502,470

476,335

619,195

477,890

65,500

79,710

80,730

77,570

615,596

610,482

628,834

532.355

July 16
July 16
July 16

—

sales

Other

681,096

690,192

709,614

609,925

Total round-lot transactions

Total

July 16

purchases

sales

LABOR

—

(1947-49

NEW
=

SERIES

—

U.

S.

DEPT.

All

371,870

On

common

2,060,215

On

preferred

2,623,796

2,609,442

2,775,104

ZINC

"foods

-

Aug.

2

Aug.

2
•

♦Revised
tons

as

of

.$09.9

109.8
100.0

101.2

81.4

82:2

of

.Aug,

((Includes 852,000 barrels of foreign
1955, as against Jan. 1, 1954 basis of
orders not reported since introduction of

figure.

Jan.

tNumber

other than farm and foods.

1.




2

116.4

runs:
SBased
124,330,410 tons.
Monthly Investment

crude

110.0

110.1

89.8

95.3

102.9
•

—

All commodities

$78,213,368

$101,605,146
70,563,056
3,554,427

$112,050,693

$74,511,161
42,910,847
2,909,836

$67,008,629

$77,866,173
44,084,131

$40,001,011

40,661,482

21,616,137

of

20,148,610

12,529,801

4,085,268

2,179,917
2,36

44,134,201

& equipment)

32,240,831

appropriations:

423,520

2,351,584

Ratio

.

$116,052,181
4,001,488

income

OXIDE

stock,

stock
to fixed charges

(BUREAU

OF

'

~

3.27

80,964,138
3,097,965

3.60

3,702,207

43,526,937

MINES)—Month

100):

Group—
commodities

Meats

Dividend

384,$20

OF

fixed charges
charges
——•'

$105,517,854
3,912,708

taxes

income

2,224,622

2,532,085

income

for

fixed

Depreciation (way & structure

385,220

.

from

income

2,238,576

Commodity
r

Net

July 16

July 16

PRICES,

after

deductions

July 16

Total sales

WHOLESALE

2,604,335

2,359,^25

2,303.080

2,221,130

deductions

available

Income

Other

Federal

for account of members—

Short sales

-Other

ihcome

Total

Miscellaneous

Income

July 16

—.

Total sales

,

46,300
286.890

transactions initiated off the floor—

Total

\

38 000

286,610

104.8

86.7

87.2

115.8

114.4

•

Production'

(short tons)
Shipments (short tons)
Stocks at end of month (short tons)
^Revised figure.

'Doemstic five tons or
on

new

Plan.

.

annual

»*New

capacity .of 125.828,31.0

all-time

high

record.

Port

Colburne,

quotations.

East St. Louis

14,810
13,885

11,339
12,808

15,748
.
14,433
tBased on the average of the

§Average of quotation on special shares to plater.

but less than carload lot, boxed. §§Price for tin contained.,
U. S, duty included. ttAvera^e of daily mean of bid and ask ,

more

quotation at morning session- of London
from

13,251
17,171
11,828

tBased on the producers' quotation.

producers' and platers'
♦♦Fob

,

exceeds 0:5c.

Metal Exchange;- ttDelivered where' freightr

Financial Chronicle... Thursday, August 11, 1955

The Commercial and

(592)

32

* INDICATES

Securities Now in Registration
Uranium & Oil Corp.
of notification) 15,000,000 shares of com¬
mon stock. Price—At par (one cent per share). Proceeds
—For mining operations. Office—65 East Fourth South
Academy

June 10 (letter

St, Salt Lake City, Utah.
Investment Co., same city.

Underwriter—Western States

Admiral Finance Corp.,

Price—To

$513,182.50 of outstanding junior subordinated deben¬
tures, series B, and for expansion and working capital.
Underwriter — Paul C. Kimball & Co., Chicago, III.
Offering—Expected early in September.

construction program.

Approved Finance, Inc., Columbus, Ohio
(letter of notification) 5,000 shares of common
stock (no par) being offered for subscription by stock¬

July 13

cumulative pre¬
of common stock
(par 10 cents) to be offered in units of five preferred
shares and one common share.
Price — $50 per unit.
Underwriter
Paul C. Kimball & Co., Chicago, 111.

share. Proceeds—For general funds. Office—39
Chestnut St., Columbus, Ohio. Underwriter—None.

per

(par $1). Price

—At market.

notification) approximately 500,000
Price—Approximately eight to
per share.
Proceeds — To D. E. Replogle,
President. Office—1011 Hazel St., Paterson, N. J. Under¬
writer—McCoy & Willard, Boston, Mass.

stockholders in the ratio of $100

by common

principal amount of debentures for each 16 shares of
stock held. Price—To be supplied by amendment. Pro¬
ceeds
For working capital and expansion purposes.
—

York.

Underwriter—Lehman Brothers, New
Allied

Development Corp.

Industrial

(letter of notification) 300,000 snares of class
A common stock. Price—$1 per share. Proceeds—For oil
and gas

Office—1508 Gapitol Ave., Houston,
Paul C. Ferguson & Co., same ad¬

operations.

Underwriter

Tex.

—

dress.

ginia St., Reno, Nev.

Underwriter—Senderman & Co.,

address.

^ Aloha, Inc., Las Vegas, Nev.
Aug. 8 filled 900,000 shares of common stock (par $1)
and 900,000 shares of preferred stock (par $10) to be
■offered in units of one share of each class of stock. Price
—$11 per unit. Proceeds—For construction of
related activities and for contingencies, stock

hotel and
in trade,

Colo.
July 11 (letter of notification) 87,500 shares of common
stock (par $1). Price—$2 per share. Proceeds—For pay¬
ment of notes and account payable, purchase of addi¬
tional equipment, and working capital. Office — 1405
Mesita Road, Colorado Springs, Colo. Underwriter—A. H.
Vogel & Co., Detroit, Mich.

-^Alouette Uranium & Copper Mines, Inc.,
Montreal, Canada
July 22 (Regulation D) 1,000,000 shares of common stock.
Frice—30 cents per share. Proceeds—For exploration and

Underwriter—Hudson-Berg^
Securities, Inc., Cliffside Park, N. J.
development expenses, etc.

"D") 600,000 shares of common stock
(per $1). Price — 50 cents per share. Proceeds—For
general corporate purposes. Underwriter—Maine Invest¬
ment Co., Ltd.

X^eb. 17 (Regulation

Corp.,

(8/16)

Enka, N. C.

Inc.

shares of common stock (par 50
Price—$3.75 per share. Proceeds—For manufac¬
of Teleac Sending and Receiving Units, working

American

June 15 filed

736,856 shares of common stock (par $25)

being offered for subscription by common stockholders
■on the basis of one share
for each five shares held on

(with an oversubscription privilege); rights ex¬
pire Aug. 23. Price—$48.50 per share. Proceeds—To be
applied to the purchase of equity securities of sub¬
sidiaries or to replace other corporate funds used for

Aug. 9

that purpose.

Underwriters

York: and Drexel & Co.,

—

White, Weld & Co., New

Philadelphia.

American Republic Investors,

Inc., Dallas, Texas

July 15 filed 800,000 shares of common stock (par $1).
Price—$10 per share. Proceeds—For working capital, etc.
"Underwriter—None.

Statement effective.
St. Louis, Mo.

(letter of notification) 19,124 shares of common
stock (par $10) being offered for subscription by stock¬
holders of record June 1 on a l-for-4 basis; rights expire

July 6

Sept 1. Price—$15 per share. Proceeds—To expand
production facilities and/or repair of building and equip¬
ment; to increase inventories; and for working capital.
Office—4327-63 Duncan Ave., St. Louis 10, Mo. Under¬

on

May 26 (letter of notification) 20,000,000 shares of com¬
mon stock.
Price—At par (one cent per share). Pro¬
mining expenses.

ceeds—For

South St., Salt Lake

Office

—

156 East Third

City, Utah. Underwriter—Columbia
Colo., and Salt Lake City, Utah.

^ Bergstrom Paper

Co., Neenah, Wis.

(8/23-24)

shares of class A (non-voting) com¬
Price—To be supplied by amend¬
Proceeds—To finance expansion and moderniza¬

Aug. 4 filed 70,000
stock

mon

ment.
tion

(par $1).

program.

Underwriter—A. G. Becker & Co. Inc.,

Chicago, 111.

July 12 filed 500,000 shares of common stock (par 10
cents).
Price—$1 per share. Proceeds—To explore and
drill leases and claims in State of Utah. Underwriter—

Stacy

Porter,

&

Co.,

Houston,

Tex., on "best efforts

basis."

ir Blake & Neal Finance

Co., Portland, Ore.

denominations of $500 or multiples

thereof). Proceeds—

working capital. Office—521 S. E. Ankeny

St., Port¬

land, Ore. Underwriters—None.

-A Blenwood Mining & Uranium Corp.,

Denver, Colo.




deposited and accepted within 30 days from the
mailing of the prospectus to the Goodman
stockholders). Underwriter — None. Statement effec¬
the

of

date

tive July 20.

Canadian

•

Petrofina Ltd.

(Montreal, Canada)

filed 1,434,123 shares of non-cumulative par¬
ticipating preferred stock (par $10), of which 270,943
shares are being offered in exchange for shares of $1

July

15

capital stock of Calvan Consolidated Oil & Gas Co.

par

basis

the

on

of

one

share

of

Canadian

Petrofina

for

each four shares of Calvin stock and 1,163,180 shares are

in

offered

exchange

for

shares

of

stock

of

Securities Ltd.

on

common

Western Leaseholds Ltd. or Leasehold

held. These offers will expire on Sept.

Securities
15. Under¬

Canadian Uranium Mines,

Ltd., Montreal, Canada
(regulation "D") 2,000,000 shares of common
stock (par one cent).
Price—15 cents per share. Pro¬
ceeds—For exploration and development expenses. Un¬
derwriter—Tellier & Co., Jersey City, N. J.
June

3

Caribou Ranch Corp.,

Denver, Colo.

July 15 filed 505,000 shares of common stock (par $1.)
Price—$4 per share. Proceeds—For acquisition of prop¬
erty and equipment, construction of additional facilities,
etc. Underwriter—Mountain States Securities, Inc., Den¬

Colo.

ver,

stock

Uranium Co., Moab, Utah

(letter of notification) 300,000 shares of common

Price—$1 per share. Proceeds—
Underwriter—Universal Invest¬
Corp., Washington, D. C.

(par five cents).
mining expenses.

For

ment

(Victor V.)

Clad

June 17 (letter

Co., Philadelphia, Pa.

of notification) 120,000 shares of common

stock

(par 25 cents). Price—$2.50 per share. Proceeds—
equipment and workmg capital. Underwriter—Bar¬
rett Herrick & Co., Inc., New York.
For

Clad-Rex Steel Co., Denver,

Colo.

(letter of notification) 300,000 shares of common

June 6

Proceeds—To re¬
working capital. Office—
40th Ave. and Ulster St., Denver, Colo. UnderwritersMountain States Securities Corp. and Carroll, Kirchner
& Jaquith, Inc., both of Denver, Colo.
,
Price—At par ($1 per share).

tire outstanding debts and for

•

Coastal

Finance

Md.

Silver Spring,

Corp.,

(letter of notification) 5,669 shares of class A
common
stock (par $10) being offered first to stock¬
holders of record Aug. 5 on a basis of one new share for
each six shares held; rights to expire on Aug. 18. Price

Proceeds—To reduce bank loans and
working capital. Underwriter—W. E. Hutton & Co.,
Baltimore, Md. and New York, N. Y.

—$23.50 per share.
for

Colohoma

Uranium, Inc., Montrose, Colo.

(9/1)

New

ceeds—For expenses

incident to mining operations. Of¬
Under¬

Building, Salt Lake City, Utah.
writer—J. E. Call & Co., Salt Lake City, Utah.

fice—403

Felt

Bonnyville Oil & Refining Corp., Montreal, Can.
April 29 filed $2,000,000 5% convertible notes due July
1, 1975 to be offered for subscription by common stock¬
holders at rate of $100 of notes for each 100 shares of
stock held.
Price—95% of principal amount to stock¬
holders and 100% to public. Proceeds—For development
costs and general corporate purposes.
Underwriter—
Statement effective June 21.

of principal amount.

for

debt;

drilling

Underwriters

expenses

California

Electric

Proceeds—To

and

pay

development

—

Power

Co.

(8/23)

July 15 filed 230,000 shares of common stock (par $1).
Proceeds—To reduce bank loans. Underwriter—To be

competitive bidding. Probable bidders:
M. Loeb, Rhoades & Co. and Bear, Stearns & Co.

determined
Carl

by

ate

Underwriters—General

purposes.

Investing

York; and Shaiman & Co., Denver, Colo.

Corp*

-

Colorado Oil & Uranuim Corp.

June 7 (letter
stock
For

of notification) 300,000 shares of common

(par 20 cents). Price—$1 per share. Proceeds—
and mining activities. Office — 350 Equitable

oil

Bldg., Denver, Colo.
same city.
Colzona

Underwriter—Birkenmayer & Co.,

Oil & Uranium Corp., Denver,

Colo.

April 29 (letter of notification) 3,000,000 shares of com¬
mon
stock (par five cents). Price—10 cents per share.
Proceeds—For

mining

expenses.

Office—1300

Larimer

St., Denver, Colo. Underwriter—Peters, Writer & Chris¬
tensen, Inc., Denver, Colo.
Uranium Mines,

Commercial

Corp., Wichita Falls, Texas

Burt, Hamilton & Co., Inc.,
Dallas, Tex.; and N. R. Real & Co., Jersey City, N. J.

offices

out¬

standing capital stock of Goodman Lumber Co., Good¬
man, Wis., on the following basis: 18 shares for each
share of Goodman common stock; eight shares for each
share of Goodman 2nd preferred stock; and eight shares
for each share of Goodman 1st preferred stock; offer to
terminate on Sept. 15, 1955 (subject to withdrawal by
Calumet if the required number of Goodman shares have

Bojo Uranium Co., Salt Lake City, Utah
July 8 (letter of notification) 3,000,000 shares of com¬
mon
stock.
Price—At par (10 cents per share). Pro¬

—

program.

Private IVires to all

(par $5)

stock

116,832 shares of common

April 21 filed 2,960,000 shares of common stock (par one
cent), of which 2,500,000 shares are to be offered pub¬
licly. Price—50 cents per share. Proceeds—For explora¬
tion and development expenses and for general corpor¬

current

Chicago

filed

9

being offered in exchange for all of the issued and

1,000,000 shares of com¬
mon stock
(par 10 cents). Price — 30 cents per share.
Proceeds
For expenses incident to mining operations.
Office—612 Kittredge Bldg., Denver, Colo. Underwriter
—Peters, Writer & Christensen, Inc., Denver 2, Colo.

Price-^-At 100%

Cleveland

Calumet & Hecla, Inc.

July 21

debentures for each 100 shares (or fraction thereof held).

Pittsburgh

•

June

stock.

Co., Oklahoma City, Okla.

July 15, 1975, to be initially offered for subscription by
stockholders of record July 15 on the basis of $100 of

San Francisco

by competitive bidding. Probable bidders:

Halsey, Stuart & Co. Inc.; Blair & Co. Incorporated;
White, Weld & Co.; Blyth & Co., Inc. Bids—Scheduled
to be received up to noon (EDT) on Aug. 30.

June 8

July 26 filed $600,000 of 6% convertible debentures due

Boston

be determined

Cedar Springs

Salt Lake City, Utah

Beehive Uranium Corp.,

due 1985.

Underwriter—To

Proceeds—For reduction of bank loans.

writer—None.

Boren Oil & Gas

Philadelphia

(8/36)

Co.

Power

writer—None.

None.

New York.

Electric

California

July 2 filed $6,000,000 of first mortgage bonds,

ture

capital and general corporate purposes. Office—Balti¬
more. Md
Underwriter—Mitchell Securities, Inc., same

July 29 (letter of notification)

Natural Gas Co.

to be received

stock

For

•

(jointly); Kidder, Peabody & Co.; Lehman Brothers;
Lynch, Pierce, Fenner & Beane. Bids—Scheduled
up to noon (EDT) on Aug. 23.

Merrill

10 shares of Western Leaseholds or Leasehold

Price—To be sup¬
plied by amendment. Proceeds—For new plant facilities
and improvements.
Underwriter—Harriman Ripley &
Inc., New York.

ISSUE

March 3 filed 540,000

July 27( letter of notification) $50,000 (estimated) face
amount of 8% promissory notes.
Price — At par (in

Co.

REVISED

the basis of three shares of Canadian Petrofina for each

July 28 filed 223,530 shares of common stock (par $5)
to be offered for subscription by stockholders on the
basis of one new share for each five shares held about
Aug. 16; rights to expire on Aug. 30.

ITEMS

cents).

Black Panther Uranium

American Asbestos Co., Ltd.

Enka

Remote Systems,

Securities Co., Denver,

working capital. Underwriter—None.

American

National Life

Research Corp., Colorado Springs,

Atomic

PREVIOUS

not been

St., Phoenix, Ariz. Underwriter—First
Phoenix, same address.

Baldor Electric Co.,

of notification) 27,000 shares of 7% cumu¬
lative preferred stock (par $10) and 27,000 shares of
common stock
(par $1) to be offered in units of one
share of each class of stock. Price—$11 per unit. Pro¬
ceeds—For working capital, etc.
Office—206 No. Vir¬

and

ton

Reno, Nev.

June 27 (letter

same

Phoenix, Ariz.

Amortibanc,

Arizona

April 4 (letter of notification) 300,000 shares of com¬
mon stock, class A.
Price—At par ($1 per share). Proseeds—For working capital. Office—807 West Washing¬

city.

Allstates Credit Corp.,

of

cents

nine

Automatic

20

June

(letter

9

shares of common stock.

Insurance Co. of

^Aldens, Inc., Chicago, III. (8/30)
Aug. 10 filed $3,662,600 of convertible subordinated de¬
bentures due Sept. 1, 1970, to be offered first for sub¬
scription

East

Electronics, Inc.

Arcturus

—

Offering—Expected early in September.

for each share held
expire on Aug. 11. Price—$60

22; rights to

of July

as

of one-half share

rate

at

holders

Aug.

St. Louis, Mo.

July 29 filed 50,000 shares of 60-cent
ferred stock (par $5) and 10,000 shares

+ Advisers Fund, Inc., New York
Aug. 2 filed 50,000 shares of capital stock
Proceeds—For investment.

Proceeds—For
Underwriter—None.
directors.

by

later

filed

be

•

St. Louis, Mo.

July 29 filed $1,000,000 of participating junior subordin¬
ated sinking fund debentures due Sept. 1, 1970.
Price
—At 100% of principal amount.
Proceeds — To retire

Admiral Finance Corp.,

Telegraph Co.
of convertible debentures to be
offered for subscription by stockholders (probably on
a basis of $100 of debentures for each eight shares held).
Telephone &

American

Aug. 2 filed $650,000,000

•

ADDITIONS

SINCE

Inc.

July 12 (letter of notification) 15,000,000 shares of com¬
mon stock
(par one cent).
Price—Two cents per share.
Proceeds—For

Office—170

Underwriter

expenses

Vista
—

Grand Junction,

Grand

incident to mining operations.
Road, Grand Junction, Colo.

Columbia

Securities

Co.,

Denver

and

Colo.

^Commonwealth Investment Co.,

•

San

Francisco, Calif.
Aug. 5 filed (by amendment) an additional 1,000,000
shares of common stock (par $1). Price — At market.
Proceeds—For investment.

Community Credit Co.,

Omaha,

Neb.

(letter of notification) 1,000 shares of 5Vz%
cumulative preferred stock.
Price—At par ($100 per

June

6

Volume 182

share).

Number 5454... The Commercial and
Financial Chronicle

Proceeds—For working capital. Office—3023
Omaha, Neb. Underwriter—Wachob-Bender

Farnam St.,

Corp.,

same

Confidential Finance
Corp., Omaha, Neb
(letter of notification)
150,000 shares

March 11

cumulative preferred
shares of common

stock

stock

units

of

10 shares

common

stock.

(par

$10

—

7%

stock and

per unit.

share

one

Proceeds

of

"working capital. Underwriter—J. J.
Riordan & Co., Inc.,
42
Broadway, New York City.

Conjecture Mines, Inc., Coeur
d'Alene, Idaho
May 5 (letter of

notification) 200,000

stock

shares of

it Consolidated
Fiberglass, Inc.
Aug. 4 (letter of
notification) 200,000 shares of common
(par 10 cents).
Price—$1.50 per share. Proceeds—
For advance to
Alumin-Aire, Inc., a subsidiary, and for

City. Underwriter—J. J.
Co., Inc., New York City.
Consolidated
Sudbury Basin Mines, Ltd.,

Uranium, Inc., Long Beach, Calif.
May 31 (letter of notification) 3,000,000 shares of capi¬
tal stock. Price—At par (10 cents per share). Proceeds

"1

Jan. 31 filed
3,000,uuu shares of common stock
(no par).
be supplied
by amendment. Proceeds—For
exploration and development of
properties. Underwrite*
—Stock to be sold on
Toronto Stock

—For

Exchange

selected dealers in

Long
Los

Angeles, Inc., San Francisco and Los Angeles, Calif.

Cromwell Uranium & Development Co., Inc.
May 25 (regulation "D") 300,000 shares of common stock
(par five cents). Price—$1 per share. Proceeds—For
exploration and development expenses, etc.
Offices—
Toronto, Canada, and New York, N. Y. UnderwriterJames Anthony Securities Corp., New York.

or

United

Consolidated Water Co.
July 21 (letter of
notification) 26,000 shares of class A
common stock
(par $10). Price—$11.50 per share. Pro¬
ceeds—To repay
outstanding notes. Underwriters—The
Milwaukee Co.,
Milwaukee, Wis., Harley, Hayden & Co.,
Madison, Wis.; and Indianapolis Bond &
Share Corp.,
:

Indianapolis,

mining expenses. ■ Office—2485—American Ave.,
Beach 6, Calif. Underwriter—Coombs & Co., of

Crown Uranium Co., Casper, Wyo.
May 6 (letter of notification) 225,435 shares of common
stock (par five cents). Price—At market (estimated at
about 15 cents per share). Proceeds—To selling stock-

Ind.

ISSUE

stock

(par

10

For

mining
dium, N. M.

(Allen

&

Co.

and

August 15

&

Co.)

200,000

Ray Johnson & Co., Inc.)

Trans-National Uranium

& Oil

(Garrett Brothers,

(Offering

Enka

to

(Monday)

Common

Housatonic Public Service Corp

.Common

(Offering to stockholders—no underwriting)
(Offering

(Tuesday)
Ripley

(Bids

&

to

Common
$325,974

.Equip. Trust Ctfs.
invited)

be

$7,500,000

shares

to

reduce

(Wednesday)

other

employees at $2.75

(Bids

noon

CDT)

$4,350,000

(Bids

Bonds

EDT)

noon

(Batkin

&

(letter of notification) 2,999,000 shares of com¬
(par one cent). Price—10 cents per share.

August 18

,■

Missouri Pacific RR.
(Bids

-

Rheem

to

Ohio Power

(Thursday)

invited)

$3,675,000

Manufacturing Co._^
Co.,

Inc.)

/

Columbia

$25,000,000

Gas

t

'i

f

$6,000,000

-

v

f

v

Bonds
11

EDT)

a.m.

System,

(Bids

"

.-i

EDT)

a.m.

September 21
Debentures

•

(BIyth &

11

Co
(Bids

Equip. Trust Ctfs.
be

..Preferred

(Bids

.

to

be

$22,000,000

Debentures
$40,000,000'

invited)

'

August 19 (Friday)-

Mississippi Valley Gas Co

Debentures

(J.

H.

August 22
Film

Lederer Co.,

(Monday)

Corp

Inc. and McGrath Securities Corp.)

(A.

G.

Becker

California Electric
(Eids

Great Western

Co.

Inc.)

Power

(Offering

shares

Corp

(Lehman

500,000

shares

& Common

&

Co.) $8,500,000 debentures
850,000 shares of stock

(Bids 8:30

Talcott

PDT)

a.m.

Corp., Salt Lake City, Utah
(letter of notification) 2,000,000 shares of capital
(15 cents per share). Proceeds—
For mining expenses. Office—527 Atlas
Bldg., Salt Lake
City, Utah.

Eberstadt

Dinosaur

Uranium Corp., Seattle, Wash.
(letter of notification) 1,750,000 shares of com¬
mon stock. Price—At par (10 cents
per share). Proceed*
—For mining expenses.
Office—1226-1411 Fourth Ave.
Bldg., Seattle, Wash.
June 20

it Dome Uraitium Mines, Inc., Denver, Colo.
July 12 (letter of notification) 1,300,000 shares of com¬
mon stock (par one cent).
Price 20 cents per share. Pro¬
—

For

Inc.)

100.000

(Bids

noon

EDT)

(Bids

Bonds

(Bids

$19,500,000

Southern
(Offering

Genung's, Inc.
(P.

W.

Blair & Co.

W.

Inc.)

be

to

Inc.

18

-

invited)

19

Aldens, Inc.

Brothers)

California Electric Power Co
(Lids

Bonds

$8,500,000

to

be

invited)

Bonds

Corp

$25,000,000

Common
11

a.m.

EDT)

1,004,870

shares

to

Light Co
be

Preferred

invited)

$8,000,000

noon

EDT)




$6,000,000

(Wednesday)

(Bids

to

be

invited)

December 6
Bonds

,:

$18,000,000

a

cor¬

Sulzberger

6

(Bids

to

be

invited)

$12,500,000

of Ireland

filed

Fairway Uranium Corp., Salt Lake City, Utah
May 23 (letter of notification) 275,000 shares of capital

(par 50 cents). Price—$1 per share. Proceeds—
mining expenses. Office—2320 South Main Street,
Salt Lake City, Utah.
Underwriter — Eliason, Taylor,
Cafarelli Co., Las Vegas, Nev.
For

Family Mutual Insurance Co., Albany, N. Y«

June 28 filed

$1,500,000 of 5% debentures to be offered
of the American Farm Bureau
Federation and to State Farm Bureau Federations. and
to

members

organization.

Price—At 100% of principal amount

(in denominations of $250 each). Proceeds—To provide
company with necessary funds to comply with require¬
ments of surplus to policyholders under New York and
other state laws. Underwriter—None.
Five States

Uranium Corp.

(letter of notification) 3,000,000 shares of com¬
stock.
Price—At par (10 cents per share). Pro¬

Office—1019 Simms Bldg.,
Underwriters — Coombs & Co. of
Ogden, Inc., Odgen, Utah; and Shelton Sanders Invest¬
ments, Albuquerque, N. M.
Foremost

Dairies, Inc.

July 21 filed $20,000,000 of 4V2% subordinated deben¬
tures due Jan. 1, 1981, of which $15,000,000 are being
offered first to holders of the outstanding $4.50 preferred
stock (par $100), 4V2% cumulative

preferred stock, sink¬

ing fund series (par $50) and 4x/2%

cumulative preferred

stock, sinking fund series of 1955 (par $50) at the offer¬
ing price; and $5,000,000 are being offered in exchange,

for par, for the outstanding 50,000 shares of Philadel¬
phia Dairy Products Co., Inc. first preferred stock.
Both offers will expire on Aug. 31.
Price — 105% of

par

principal amount. Proceeds—To redeem preferred stocks*
Underwriters—Allen & Co. and Salomon Bros. & Hutzler,
both of New York.

Pitt

'

Packaging

of which 250,000

International,

Inc.

shares of common stock (par 10tf>»
shares of for account of company and

50,000 shares of five selling stockholders. Price—$3 per
share.
Proceeds—For working capital; for exploitation

(Tuesday)

Virginia Electric & Power Co
■

Underwriters—Hallowell,

June 30 filed 300,000

Bonds

by

$3,6p,600

purposes...

300,000 shares of capital stock. Price—At
:par ($1 per share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Truat
Bldg., Philadelphia, Pa. Underwriter—None.

•

$3,000,000

San Diego Gas & Electric Co

to stockholders—underwritten

Lehman

bank loans and

Co., Philadelphia, Pa.; and Weill,, Blauner & Co., Inc.
Baruch Brothers & Co., Inc., both of New York.

Fort

..Debentures

______

(Offering

repay

Albuquerque, N. M.

(Wednesday)

stockholders—bids

(Bids

(Tuesday)

operations.

and

and Blair & Co. Inc.) 25,000 shares

August 30

preferred stock and

mon

(Tuesday)

November 30
i

mining

to acquire properties; and for general

ceeds—For mining expenses.

The

-Preferred

dealers)

Co.

Arkansas Power &

$1,000,000

..Common

Brooks & Co.,

—To redeem

by

October 25 ( Tuesday)

Debentures
and

Genung's, Inc.
(P.

to

to

Co., Cheyenne, Wyo.

Common

(Thursday)

___*

Brooks & Co., Inc.

underwritten

New York State Electric & Gas

,

August 25

be

195,312 shares

County Electric Co

October

St. Louis-San Francisco
Ry

incident

June 30

shares

(Wednesday)

expenses

Chemical Co., Midland, Mich.
Aug. 5 filled 200,000 shares of common stock (par $5>
to be offered to employees of company and certain of
its subsidiaries and associated companies. Subscriptions
will be accepted from Sept. 6 through Sept. 30. Price—
To be determined near the end of August, 1955. Proceeds
—For General corporate purposes. Underwriter—None.

Debentures

$35,000,000

(Wednesday)

$67,000,000

■

August 24

EDT)

local

October
Worcester

Co.

(Tuesday)

stockholders—may

(Expected by

...Common

&

Common

Telephone Corp._
to

Underwriters—Western Securities Corp. and
Co., both of Salt Lake City, Utah.

Potter Investment

local

Telegraph

Pacific Power & Light Co

and

Debentures

(James), Inc
(F.

a.m.

October 5

Nitro-Chemicals, Ltd._Debs.

Pacific Telephone &
Telegraph Co

11

First Boston Corp.)

Common

Brothers)

(Eastman, Dillon

Rochester

Common

230,000

' '

(Saturday)

October 4

70,000 shares

Office—Denver

Price—At par

directly

Public Service Electric & Gas Co.j
(Bids

Co

EDT)

$10,000,000

(Offering to stockholders—no underwriting) $48,688,100

Class A Common

&

noon

$600,000

(Tuesday)

Bergstrom Paper Co.l

Bonds

EDT)

noon

Mountain States Telephone &
Co. ___■

Common

August 23

Northwest

(Bids

October 1

f

Splendora

operations.

Deseret Uranium

stock.

Farm

Pacific Power & Light Co

(Offering to stockholders—underwritten by Equitable
Securities Corp.) $2,000,000

gas

Colo. Underwriter—Carroll, KirchDenver, Colo.

June 9

September 27 (Tuesday)

-

and

stock

(Wednesday)

Inc

■

,,(V

oil

Electronics Co.

(Tuesday)

Ohio Power Co

.

and

Co., both of Miami Beach, Fla.

Club Bldg., Denver,
ner &
Jaquith, Inc.,

177,500 shares

September 20

-Common

Co.) $299,999

working capital

stock

Proceeds—For

Jan.

Tel-Instrument Electronics Corp._L_

for

Underwriters—Atwill & Co.

Common

EDT)

noon

(Morgan Stanley & Co.) $200,000,000
,

and

Denver-Golden Oil & Uranium Co.
June 23

$15,000,000

Light Co

(Bids

Debentures

&

share, and 9,400
share.
Proceeds—To

per

Statement to be withdrawn.

Utah Power &

General Motors Acceptance
Corp

payable

corporate purposes.

and H. Hentz

&

Utah Power & Light Co

i

J

Ctfs.

101, Vana¬

Underwriter—None.

accounts

porate

(Tuesday)

September 13

August 17

Box

Denison Corp., N.
Miami, Fla.
July 20 (letter of notification) 100,780 shares of class A
common
stock
(par 10 cents), of which 91,380 shares
are
to be offered to public at
$3 per

other debt;

Inc.) 223,530 shares

Chicago, Burlington & Quincy RR._Equip. Tr.

Proceeds—•

share.
O.

* Eby (Hugh H.) Co., Philadelphia, Pa.
July 26 filed 360,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceed*

(Thursday)

New York Central RR

Common
by Harriman

25,000 shares

underwriting)

stockholders—no

to

September 8

Corp

Co.

Common

Uranium, Inc

Hilo Electric Light Co., Ltd

$300,000

per

Address—P.

it Dow

Investing Corp. and Shaiman & Co.) $1,250,000

September 5

Corp

stockholders—underwritten

(Thursday)

Common

Inc.) $3,000,000

August 16
American

(General

(Monday)

Texas Toy Co
•

Colohoma

shares

Price—$1

Colorado National Bldg., Denver, Colo. Un¬
derwriters—R. L. Hughes & Co., Denver, Colo, and G«

September 1
Common

Rauscher, Pierce

cents).

expenses.

Office—352

CALENDAR

(Friday)

Kirby Oil & Gas Co

1,500,000 shares of com¬

★ Defense Metals Mining Co., Vanadium, N. M.
Aug. 1 (letter of notification) 300,000 shares of common

W. Allen &

August 12

-

stock. Price — 10 cents
per share.
Proceeds—For
uranium and oil exploration. Office—726 Paulsen
Bldg.,
Empire State Bldg., same city.

ceeds

NEW

■

,

mon

mon

'

or

Bldg., Casper, Wyo. Underwriter—Justin Steppler, Inc.,

notification)

Coso

Price—To

through underwriters

city.

same

Denver, Colo.
May 27 (letter of notification) 3,000.000 shares of com¬
mon
stock
(par one cent). Price—10 cents per share.
Proceeds—For mining expenses. Office—404 University
Building, Denver, Colo. Underwriter—Peters, Writer &
Christensen, Inc., Denver, Colo.

Rior¬

Toronto, Canada

States.

Corp.,

Cortez Uranium & Mining Co.,

acquisition of, advances to
and investment in other com¬
panies that may be
organized or acquired. Office—118
"West 22nd St., New York
&

Dawn Uranium & Oil
Co., Spokane, Wash.
June 16 (letter of

Salt

Mining Co., Denver, Colo.
June 8 (letter of notification) 2,995,000 shares of common
stock.
Price—At par (10 cents per share). Proceeds—
For mining operations.
Offices — 738 Majestic Bldg.,
Denver, Colo., and 317 Main St., Grand Junction, Colo.
Underwriter—Lasseter & Co., Denver, Colo.

stock

dan

New York.

South,

mining operations. Office—65 East 4th
Lake City, Utah.
Underwriter — Empire

Cordillera

common

(par 10 cents). Price—25
cents per share;
Pro¬
ceeds—For mining
expenses. Office—326
Wiggett Bldg.,
Coeur
d'Alene, Idaho. Underwriter—M. A.
Cleek, Spo¬
kane, Wash.
•

■

Proceeds—For

Copper Blossom Uranium & Mining Co.
June 24 (letter of notification) 5,000,000 shares of capital
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For mining expenses. Office—65 East 4th South,
Salt Lake City, Utah.
Underwriter—Empire Securities
Corp., same city.
\

For

—

holder who received these shares in
exchange for shares
of Kontika Lead & Zinc
Mines, Ltd. Office—205 Star

Securities

(par 95 cents) and 15,000
one cent) to be offered in

of preferred

Price

of

Copper Blossom Uranium & Mining Co.
(letter of notification) 5,000,000 shares of capi¬
tal stock (par one cent).
Price—Five cents per share.

June 24

city:

of

Preferred

"Totosave"

system;

and

for

marketing of "Tropic-

Continued

on

page

34

Thursday, August 11,

The Commercial and Finandial Chronicle...

34

1955

(594)

infra-red space heater. Office — Pittsburgh, Pa.
Underwriter—Barrett Herrick & Co., Inc., New York.
Pella, la.
May 6 (letter of notification) $260,000 of 4% first mort¬
gage bonds, series A, due May 1, 1975.
Price—At par
(in denominations of $1,000 each). Proceeds—To retire
existing debt, acquire Northwestern Bell properties in
Leighton, la., and for conversion of both exchanges to
dial operation.
Underwriter — Wachob-Bender Corp.,

Telephone Co.,

Omaha, Neb.

(Peter)

Brewing Co., Chicago, III.
July 26 (letter of notification) 15,000 shares of common
stock (par $1.25) to be offered for subscription by stock¬
holders of Fox Head Brewing Co. on the basis of one
Peter Fox share for each four Fox Head shares held.
Fox

Office—2626 West Monroe St.,
Freedom

Insurance

Boston

210

Ray"

Fowler

accounts. Office—
Underwriter—None.
• Great Western Corp., Los Angeles, Calif.
(8/2^)
Aug. 1 filed 500,000 shares of capital stock (par $1).
Price—To be supplied by amendment. Proceeds—To re¬
tire $10,473,628 bank loan, for stock acquisitions and for
general corporate purposes.
Business—A holding cor¬
poration. Underwriter—Lehman Brothers, New York.

Chicago, 111.

Berkeley, Calif.
stock (par $10).
Price—$22 per share. Proceeds—For capital and surplus.
Business—All insurance coverages, except, life, title and
mortgage.
Office—2054 University Avenue, Berkeley,
Calif., c/o Ray B. Wiser, President. Underwriter—Any
underwriting agreement will be made on behalf of this
company by Uni-Insurance Service Corp.
Co.,

June 6 filed 1,000,000 shares of common

Bldg.,

Denver, Colo.

Co.

Great Yellowstone Uranium

(letter of notification)

June 29

1,200,000 shares of com¬

(par 10 cents).
Price—25 cents per share.
Proceeds—For mining operations.
Office—139 N. Vir¬
stock

mon

Underwriters—Cromer Brokerage
Sondrup & Co., both of Salt Lake City,

ginia St., Reno, Nev.
Walter

Co. and

Utah.

July 29 (letter of notification) 500,000 shares of common
stock (par one cent). Price—An aggregate of $50,000.
mining expenses. Office—82 Beaver St.,
Underwriter — Prudential Securities Corp.,

Proceeds—For

York.

same

address.

if Gas Hills Mining & Oil, Inc., Kemmerer, Wyo.
Aug. 1 (letter of notification) 1,000,000 shares of capi¬
tal stock (par five cents).
Price — 25 cents per share.
Proceeds—For oil and mining expenses.
UnderwriterEmpire Securities Corp., Las Vegas, Nev.
General Homes, Inc.
Dec. 15 filed 300,000 shares of common stock

(par $1).
Price—$5 per share. Proceeds—For plant expansion, new *
equipment, inventory and working capital.
Office—
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬
ler & Co., New York.
General Minerals Corp., Dallas, Texas
July 21 filed 1,850,000 shares of common stock (par $1).
Price—To be supplied by amendment (may be around
$2 per share). Proceeds—To purchase the production
payments to which the company's oil properties are now
subject; to pay an obligation of S. Y. Guthrie, President;
and for acquisition of additional uranium properties and
exploration, development and mining of its, present
properties. Underwriters — Sanders & Newsom and
Rauscher, Pierce & Co., both of Dallas, Tex.; and Laird
& Co., Wilmington, Del.

General Motors Acceptance Corp.
(8/17)
Aug. 4 filed $200,000,000 of 20-year debentures due 1975.
Price—To be
supplied, by r amendment., Proceeds—To

Underwriter—Morgan Stanley & Co., New

York.

ir General Motors Corp., Detroit, Mich, r
filed 1,000,000 shares of common stock (par
$1.66%) to be offered for subscription pursuant to the
company's Savings-Stock Purchase Program for Salaried
Employees in the United States.

Aug. .2

General

Hawk Lake Uranium

(par 10

Proceeds — For mining
Underwriter—Dobbs & Co., New York

Price—$1.50 per share.
etc.

expenses,

City, will act as agents.

Production Co., Tulsa,

Home-Stake

Okla.

.

May 12 filed 60,000 shares of capital stock (par $5) and
1,000 debentures (par $100) to be offered for sale in
units of 60 shares of stock and one $100 debenture, or

Houston

Gulf

Sulphur Co.

April 25 filed 500,000 shares of common stock (par one
cent). Price—$1.20 per share. Proceeds—For explora¬
tion for sulphur and related activities. Name Changed—
Formerly Humble Sulphur Co. Office —: Houston, Tex.
Underwriters—Hunter Securities Corp., New York; and
Garrett &

Co., Dallas, Tex.

Statement effective July 29.

immediate future.

Industrial

May 12

Offering—Not expected in

Hardware Mfg.

Co.

(amendment) $1,500,000 of 5% debentures due
shares of common stock (par 50 cents),
85,000 shares are to be sold to Seymour and
Offerman at $5 per share. Price—To be sup¬

1975 and 300,000

which

of

Bernard

plied by amendment. Proceeds—To purchase Hugh H.
Eby Co. and Wirt Co.
Underwriters—Hallowell, Sulz¬
berger & Co., Philadelphia; and Baruch Brothers & Co.,
Inc. and Weill, Blauner & Co., Inc., both of New York. *

Denver, Colo.

& Uranium Corp.,

Inland Oil

July 18 (letter of notification) 1,200,000 shares of com¬
mon
stock (par 10 cents). Price — 25 cerfts per share.
Proceeds—For expenses incident to oil and gas activities.
Office—3975 East 58th Ave., Denver, Colo. Underwriter
—Shaiman & Co., Denver,

Colo.

Corp.

19 filed $438,200~"6f 5%%' convertible debentures
due 1965, to be offered first for subscription by stock¬
holders at the rate'-of $20 of debentures for each 16
shares held. Price — To be supplied by amendment.

capital. Business — Bituminous
materials. Office—Delaware Trust Bldg.,
Wilmington 99, Del. Underwriter—None.

Proceeds

—

For working

concrete paving

Feb.

common

stock.

Price—100%

of principal amount for

the debentures and $7 per

share for the stock. Proceeds
$290,000 to pay insurance company
loan, reduce certain borrowings and increase working
capital. Underwriters—P. W. Brooks & Co., Inc. and
Blair & Co. Incorporated, both of New York.

—

Approximately

Gibralter Uranium

Corp., Aurora, Colo.
July 18 (letter of notification) 2,000,000 shares of
mon

stock

(par

one

cent).

Price

—

15

com¬

cents per share.

Proceeds—For expenses incident to mining. Office-^701
Moline St., Aurora, Colo. Underwriter—Robert J. Con-

nell, Inc., Denver, Colo.
Great Eastern Mutual

Life

Insurance Co.

June 23 (letter of notification) 45,583 shares of common
stock (par $1) to be offered for subscription by stock¬
holders of record June 10 in the ratio of
for each three shares held;

one

new

share

stock not subscribed for by

Sept. 10, 1955 will be offered to public. Price—To stock¬
holders, $3 per share; and to public, $5 per share. Pro¬




& Co., Inc.
notification) 289,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital.
Business —- General contractors.
Office
511 Center Ave., Mamaroneck, N. Y. Under¬
writer—A. C. Champlain & Co., New York, N. Y.
(M. E.)

ic Maloney

Aug. 5 (letter of

•

Buffalo, N. Y.

it Marine Midland Corp.,

7\.

.

$5) to
capital
stock of The Citizens National Bank of Springville on.
the basis of 4% Marine Midland common shares for each
one
share of Citizens stock. The offer is subject to
acceptance by holders of not less than 80% (8,000 shares)

Aug. 5 filed 43,000 shares of common stock (par
be offered in exchange for all of the outstanding

77'. :'v/;

of Citizens stock.
Maule

•

Industries, Inc., Miami, Fla.

July 15 filed 638,532 shares of common stock (par $1),
being offered lor subscription by common stockholders
the

at

of

rate

Price—$5.87%
purchase money notes

rights to expire Aug. 22.

per share.
Proceeds—To
issued in connection with

pay;
property

bank

loans; and to exercise an

Lake

plant

concrete

of

concretes.
&

July 26

5, 111.

Chicago

rities Co., Denver,
Israel
28

Pecan

filed

Underwriter—Columbia Secu¬

Colo.

;

24,900 shares

.

Ltd.

Plantations,

of ordinary common stock

(par one Israeli pound). Price—$10 per share. Proceed*
—For capital expenditures. Underwriter—None. Office*
—Natanya, Israel, and New York, N. Y.
Kachina

Uranium

Corp., Reno, Nev.

May 12 (letter of notification) 600,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Office—206 N. Virginia St., Reno,
Nev.

Underwriter—Whitney, Cranmer & Schulder, Inc.,
'
7

Denver. Colo.
•

Kirby Oil & Gas Co.

(8/12)

\

July 8 filed 200,000 shares of common stock (par $1),
of which 100,000 shares are for the account of the com¬

and 100,000 shares for the account of the Murchison-»Richardson financial interests of Texas.
Price—To

pany

be

supplied

by amendment.

property.

acquisitions: to pay
option to purchase the

Business

—

Production and sale

blocks and ready-mix*
Underwriter—Merrill Lynch, Pierce, Fenner
aggregates,, concrete

Beane, New York.

*

"7

7

7,

Medical Abstracts,'Inc.,

Pa. Underwriter
C. - (
- 7'. ,7

Bldg., Philadelphia,

Mehadrin

Plantations,

Price—$10.75
additional

per

groves

Proceeds—To

Carl J.

stock (par $10).

share. Proceeds—For acquisition of
and working capital and other gen¬

eral corporate purposes.

Business—Production and sale
also plans to grow sub¬

of citrus fruits in State of Israel;

tropical fruits.

Underwriter—None.

Merritt-Chapman & Scott Corp., New York
June 28 filed
314,718 shares of common stock (par
$12.50) being offered : in exchange as follows: 102,250
shares to class A stockholders of Devoe & Raynoids >&
Co., Inc.

on

basis of vl% shares for each Devoe

share;

6,621 shares to class B common stockholders of Devoe
on 1%-for-l basis; 127,623 shares to common stockhold¬

share-for-share
Ten¬
nessee
basis;
13,453 shares to common stockholders of -Newport Steel
Corp. on a l-for-2.1 basis; 10,899 shares to common
stockholders of Marion Power Shovel Co. on a lV2-for-l
basi's; and 548 shares of class B common stockholders of
The Osgood Co. on a l-for^l% basis. Offer will expire

ers

of New York

Shipbuilding Corp. on a

shares to common stockholders of
Products & Chemical Corp. on a 1%-for-l

53,324

basis;

retire out¬

Sept. 30.

Underwriter—-None.

if Mesa-Loma Mining; Corp.,"Tort Collins, Colo..,
July 13 (letter of notification) 2,955,000 shares of com¬

cent)..Price
10 cents per -share.
incident to mining operations/
Office—415 Peterson St., Fort Collins, Colo. Underwriter
—Bay Securities Corp., 115 Broadway, New Yrork, N. Y.

mon

stock

(par

Proceeds—For

one

expenses

if Meteor Air Transport, Inc.
July 29"(letter of notification) 5,963 shares
stock (par $1) to be issued upon exercise of

of Class A
warrants at
$1.50 per share. Proceeds—For working capital.: Under¬
writer—Eisele & King, Libaire, Stout & Co., New York.

basis

of

debentures

$100 ^.of

stock. Price—At par (five cents per share). Proceeds—
For'mining expenses. Office — 124% South Main St.,
Newcastle, Wyo. Underwriter— Mid-American Securi¬

the
25 shares held;

each

of principal
outstanding
$457,000 of 4%% notes

4%% bonds due 1974 and prepay
due to
1956.
Office—Jackson, Mich.

Underwriter

—

Tenn.
Mitchell Mining Co., Inc., Mount Vernon, Wash.
May 13 (letter of notification) 500,000 shares o£ common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Address—P. O. Box 301, Mount
Vernon, Wash. Underwriter—Standard Securities Corp.,
Equitable Securities Corp., Nashville,

Spokane, Wash,
Monte
June 6
mon

f

,

<

.

Carlo Uranium

(letter of notification)

stock. .Price—At par

Bldg.,

Salt

mining

Lake

;

r

6,000,000 shares of com¬

share). Pro¬
706 Newhouse

(five cents per

expenses.

City,

.7

Mines, Inc.

tinent Securities, Inc., same

(letter of notification) 6,000,000 shares of capital

for

de¬
by

rights to expire on Sept. 8. Price ■>-* 100%
amount.
Proceeds—To retire $1,500,000 of

scher, Pierce & Co., Dallas, Texas.
Leborn Oil & Uranium Co.

(8/19)

Mississippi Valley Gas Co.

July 28 filed $2,000,000 of convertible subordinate
bentures due. 1975, to be offered for subscription
common
stockholders of record Aug. 18, 1955, on

ceeds—For

ties, Inc. of Utah, Salt Lake City, Utah.

—

Inc., New York

April 28 filed 70,000 shares of common

standing bank loans and for exploration of oil and gas
leases. Underwriters—Allen & Co., New York; and Rau¬

June 8

„

shares held

share for each 2%

new

one

about Aug;-5;

.

.

:

July

Bond

of

amend¬
and for

general corporate purposes. Underwriters—Atwill & Co.,
Miami Beach, Fla., and Emerson Cook Co., Palm Beach,

on

Amiesite

Interstate

* Genung's, Inc., Mount Vernon, N. Y. (8/25)
Aug. 5 filed $1,000,000 of 5%% sinking fund deben¬
tures due 1975 (with detachable seven-year warrants to
purchase 50 shares of $1 par common stock for each
$1,000 of debentures, at prices ranging from $8 to $15
per share over the period), together with 25,000 shares

—

-—

Bliedung, Washington, D.

Avenue,

Price

Securities

Proceeds

ment.

Fund

Corp., and Hill, Crawford & Lanford, Inc., both of Little Rock, Ark.; and Security &
Co., Lexington, Ky.

stock.

shares of 5%
At par ($100 per

Joseph C. Mackey,

Price—To be supplied by
For purchase of equipment

President of company.

son,

Price—$400 per unit. Proceeds—For
Underwriter—None. O. Strother Simp¬
of Tulsa, Okla., is President.

lola Uranium Corp.

3,000

by common stockholders and part to

working capital.

Southern

(letter of
cumulative preferred

Lauderdale, Fla.

Mackey Airlines, Inc., Ft.

July 29 filed 333,334 shares of common stocK t,par 33J/3
cents), part of which are tc be offered for subscription

multiples thereof.

share). Proceeds—To retire bank loans. Underwriters—

30

pany.

Philadelphia, Pa.
June 15 (letter of notification) 300,000 shares of com¬
mon stock (par one cent).
Price—$1 per share. Proceeds
—For working capital, etc. Office—825 Western Savings

(letter of,notification) 1,200,000 shares of com¬
mon
stock (par one cent).
Price—25 cents per share.
Proceeds—For mining costs.
Office—1414 So. Michigan

June

—

—

Corp.

April 12 filed 200,000 shares of common stock
cents).

Waterworks

Corp.
notification)

shares of class B (non-voting) com¬
mon stock
(par $1). Price—$3 per share. Proceeds—To
increase capital and surplus.
Office—Gadsden, Aia. Un¬
derwriter
None, sales to be handled by Burlus Ran¬
dolph Winstead, Secretary and Treasurer of the com¬

Fia.

July 8 (letter of notification) 240,000 shares of common
stock (par one cent). Price—$1.25 per share. Proceeds—
For purchase of machinery and equipment and working
capital. Underwriter—Benjamin & Co., Houston, Texas.

provide additional working capital for the purchase of
receivables.

Co. of Alabama

Insurance

Accident

and

June 2 filed 750,000

Texas

Hardy-Griffin Engineering Corp., Houston,

Hedges Diesel, Inc.
July 25 (letter of notification) 5,419 shares of class A ;
-^-Fremont Uranium Co., Salt Lake City, Utah
common
stock and 10,838 shares of class B common
Aug. 1 (letter of notification) 15,000,000 shares of com¬
stock. Price—At par ($10 per share). Proceeds—For ex¬
mon
stock. Price—At par (one cent per share).
Pro¬
pansion, equipment and working capital. Underwriter—
ceeds—For mining expenses. Office—515 Deseret Bldg.,
Butcher & Sherrerd, Philadelphia, Pa.
Salt Lake City, Utah. Underwriter — Moab Brokerage ;
Hilo Electric Light Co., Ltd., Hilo, Hawaii (9/5) >
Co., Western States Investment Co., Potter Investment
Aug. 1 filed 25,000 shares of common stock to be offered
Co., Mid-America Securities, Inc. of Utah, and Cashinfor subscription by stockholders of record Sept. 5 on the
Emery, Inc., all of Salt Lake City, Utah.
basis of one new share for each five shares; unsubscribed
Fremont Uranium Corp., Denver, Colo.
shares to be first offered to employees at rate of five
April 22 (letter of notification) 600,000 shares of com¬
shares for each full year of employment; then to general •
mon stock (par 10 cents).
Price —50 cents per share.
public. Price — To stockholders and employees, at par
Proceeds—For .mining expenses.
Office—235 Ivy St.,
($20 per share); and to public, at prevailing market price
Denver, Colo. Underwriter—L. A. Huey Co., same city.
($25.87% per share on July 22, 1955). Proceeds — For
expansion and improvement. Underwriter—None.
id Gallina Mountain Uranium Corp.

New

Life

ceeds—To increase capital and surplus

Continued from page 33

Office

—

Utah. Underwriter—Mid-Con¬
city,
1

Morning Sun Uranium, Inc., Spokane, Wash. .
14 (letter of notification) 700,000 shares of com¬

June
mon

stock

(par 10 cents).

Price

Proceeds—For mining expenses.

Bldg., Spokane, Wash.'
same city.

25 cents per share.
Office — 415 Paulsen

—

Underwriter—Pennaluna & Co.,

Volume 182

Number 5454

The Commercial and Financial Chronicle

...

Mortgage Associates, Inc., Philadelphia, Pa.
June

7

Pandora Uranium Mines, Inc.
July 14 (letter of notification) 3,000,000 shares of com¬
mon stock (par one cent).
Price — 10 cents per share.

(letter of notification)

20,000 shares of 60-cent
preferred stock (par $5) and 20,000 shares
of common stock (par 10 cents).
Price-^For preferred,
$10 per share; and for common, $2.50 per share. Proceeds
convertible

—For

Proceeds—For

construction loans and

Lake

Underwriter—None.

South,

May 25 (letter of notification) 300,000 shares of

"

:

Proceeds—To

payable

.Street,

.

-

and

for

bank

loans

.construction.

New;/' York,N.

v

-

Y.

and

stock

common

(par

one

Underwriter—None.f •,'

cent)

■

-

income

Price—To

Office—Calgary,
Underwriters—Eastman, Dillon & Co.,
York.v."_;''• ;,rJ'*■ .*;,;*.;•:■
'
Portland Corp., Portland, Me. */ .
notification) .19,500 shares of class

(letter of

Rampart Uranium Co., Colorado Springs, Colo.
!July 19 (letter of notification) 2,475,000 shares of comstock.' Price—At par (10 cents per share). Proceeds
•—For expenses incident to mining operations. Office—
mon

Exchange St., Portland, Me. Underwriter—None.

•Mining Exchange Bldg., Colorado Springs, Colo. Under¬
writer—A1 J. Johnson

Fort Worth, Texas
265,000 shares of common
Price—$1 per share.
Proceeds—
For uranium and oil exploration.
Office—Fortune Arms
rBldg., Fort Worth, Tex.; Underwriter—Standard Securi¬
ties, Inc., Salt Lake City, Utah..-

.

;

Orange Hotel, Inc., Dallas, Texas
July 19 filed $450,000 of registered 4% sinking fund
debentures due May 1, 1985, which are to be offered
in exchange for $375,000
principal amount of registered
debentures

and

3.750' shares

of

$20

stock

par

Oronogo Mining Co.
(letter of notification) 13,000 shares
class A (non-voting) stock (par 10
cents),

Aug. 1

.shares of

—

Kenneth

Hartman

Sr.,

Korber

Building,

i

Albuquerque,

Pacific Telephone &
Telegraph Co. (8/23)
July 29 filed $67,000,000 of 36ryear debentures due
Aug.
15, 1991.. Proceeds—To reduce bank loans. Underwriter
*

'To

be

determined

by competitive bidding., Probable
Halsey, Stuart & Co. Inc.; Morgan Stanley &
White, Weld & Co., Lehman Brothers and Union

bidders:

..Co.;

;Securities

Corp.

(jointly).

Bids—Tentatively expected

to be received up to 8:30 a.m.

(PDT)

on

Aug. 23.

Pacific Telephone &
Telegraph Co.
July 29 filed 1,339,196 shares of common stock

| to be offered for subscription by
the

ratio

of

one

share

new

common

for

each

shares

held.

; American Telephone & Telegraph Co., the parent, owns
90.89% of Pacific's outstanding stock and intends to
sub¬
scribe for

1,199,849 of the

plied

by amendment.
Underwriter—None.
Pacific

June
mon

6

new

shares.

Proceeds—To

Price—To be sup¬
repay bank loans.

Corp.
(letter of notification) 3,000,000 shares of

t+^ck

Proceeds

(nar

—

two

cents).

Price—10

For mining expenses.

Bldg., Denver, Colo.
Co., same city.

cents

Office

Underwriter—Amos

Palestine Economic Corp., New York
.

,

r

*

'

per

811

—

C.

mining operations.
Office—530 Judge
Bldg., Salt Lake City, Utah. Underwriter—Mid Ameri¬

Securities, Inc., of Utah, 26 W. Broadway, Salt Lake
City, Utah.
Royal Register Co., Inc., Nashua, N. H.
»July 20

(letter of notification)

common

stock

(par $1).

Boston

Sudler

&

rital.

Office

—

1

Pine St., Nashua, N. H. Underwriter—

Royal Uranium Corp.
May 26 (letter of notification) 200,000 shares of
(par five cents).

Price—At market

exceed

$150,000). Proceeds—For working capital. Office
Bldg., Salt Lake City, Utah. Underwriter
—Whitney & Co., same city. No general offer planned.
—Walker Bank

Saint Anne's Oil Production Co.

May 9 (letter of notification) 20,000 shares of common
stock (par $1) to be first offered to stockholders. Price
per

St.

share.

Regis

June 28

Proceeds

of
suburban

Israel

industry; development of urban and
extension of credit; financing of exports to Israel;
working capital and general corporate purposes.
Underwriter—None, sales to be handled through com¬
pany officials and employees.

Ohio,

is

filed

Paper Co., New York
329,327 shares of common stock

Proceeds—For mining
Underwriter—None^




.

(par $1).
expenses.

exchange agent.

Underwriter

—

basis of

8,677 shares of capital
offered for subscription by

one new

share for each 10 shares

Sonoma Quicksilver Mines, Inc.
April 27 filed 800,000 shares of capital stock (par 10
cents), of which 80,000 shares are to be initially offered
to public.
value

at

which

Price—To be fixed
the time

ever

is

of

lower.

their

on

the basis of the market

first

Purpose

sale

—

To

$1

or

per

increase

share,

facilities

and invest in other quicksilver

capital.

,

properties; and for work¬
Underwriter
Whittall, Ltd., Vancouver, B. C., Canada.

Office—San Francisco, Calif.

—Norman R.

it Spirit Mountain Uranium, Inc., Cody, Wyo.
July 29 (letter of notification) 25,200,000 shares of
mon

com¬

stock. Price—At par (one cent per

share). Proceeds
mining activities. Office—
1507-8th Street, Cody, Wyo. Underwriter—Utah Uranium
Brokers, Las Vegas, Nev.

—For

expenses

incident to

Splendora Film Corp., New York (8/22)
July 27 filed 1,200,000 shares of common stock (par 10
cents). Price—50 cents per share. Proceeds—For equip¬
ment

and

accessories; for financing film productions;
working capital. Underwriters—J. H. Lederer

and

for

Co.,

Inc., and McGrath Securities

Corp.,

both

of New

York.

Stancan Uranium Corp., Toronto, Canada
April 18 filed 200,000 shares of cumulative convertible
preferred stock, series A (par one cent). Price—To be
-supplied by amendment. Proceeds—For exploration and
development expenses and for general corporate pur¬
poses.
Underwriters—Gearhart & Otis, Inc. and F. H.

Crerie & Co., Inc., both of New York.

+ State Bond & Mortgage Co., New Ulm, Minn.
Aug. 3 filled five series of certificates aggregating $20,500,000 in principal amount.
Strevell-Paterson Finance Co.

June 16 (letter of notification) 352,000 shares of common
stock (par 50 cents) being offered for
subscription by
stockholders of record July 26 at 70 cents per share on
the basis of one new share for each 10 shares held
(with

oversubscription privilege); rights to expire at noon
on
Aug. 22.
Unsubscribed shares are to be publicly
offered, commencing Sept. 10 at $85 per 100 shares.
Proceeds—For working capital.
Office—76 West Sixth
South St., Salt Lake City, Utah.
Underwriter—Harrison
S. Brothers & Co., same city.
an

Sun

Hotel, Inc., Las Vegas, Nev.
filed (as amended)
3,750,000 shares of com¬
mon stock
(par one cent). Price—$2.50 per share. Pro¬
ceeds—To construct hotel and for working capital. Un¬
derwriters—Golden-Dersch & Co., Inc., New York; and
Coombs & Co. of Las Vegas, Inc., Las Vegas, Nev.
Feb.

,

16

it Sunshine Packing Corp. of Pennsylvania
Aug. 1 (letter of notification) $300,000 principal amount
of 6% 15-year convertible debentures due Sept. 1, 1970.
(May be converted at rate of 50 shares of no par common
stock for each $100 debenture prior to maturity). Price
(in denominations of $100 each). Proceeds—For
of additional cold storage facilities. Under¬

construction

writer—None.

Talcott (James), Inc. (8/23)
Aug. 2 filed 100,000 shares of common stock (par $9).
Price—To be supplied b.y amendment.
Proceeds—For
working capital.
Underwriter—F. Eberstadt & Co., Inc.,
New

York.

(letter of notification) 15,000 shares of

stock (par $1).

May 11 (letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining operations. Office—1890 S. Pearl
St., Denver, Colo. Underwriter
Jaquith, Inc., same city.

—

Carroll, Kirchner &

Teenager Cosmetics, Inc., Las Vegas, Nev.
July 18 (letter of notification) 287,000 shares of common
stock. Price—At par ($1 per share) in units of 100 shares

company.

Sanitary Products Corp., Chicago, III.
June 27

be

Tasha Oil & Uranium Co., Denver, Colo.

Okla.; and through

June 30 filed 400,000 shares of common stock

and

Corp.
(letter of notification) 89,850 shares of common
(par one cent), represented by options issued to
underwriters. Price—50 cents per share. Proceeds—To
selling stockholder. Office — Fidelity Bldg., Oklahoma
City, Okla. Underwriter
E. W. Whitney, Wewoka,
stock

(Republic of

depository

obtaining 80% of outstand¬
The Cleveland Trust Co., Cleveland,

on

to

Price—$5.50 per share. Proceeds—To obtain addi¬
tional patents;
to repay certain loans; and working
capital. Business—Photographic equipment. Office—50
Church St., New York. Underwriter—None.

—At par

(par $5)

San Juan Uranium

June 23

Office—Denver, Colo.

For oil and mineral and

—None.

and

Price—$1.25 per share.

—

Office—Northwood, Iowa. Underwriter

being offered in exchange for common stock of General
Container Corp. on basis of 2% shares of St. Regis for
one General share.
Offer, which will expire on Aug.

areas;

*

common

(total not to

26,

.

further development

Minerals, Inc., S. A.

Proceeds

.Lamont & Co., Boston, Mass.

is conditioned upon St. Regis

For

share.

v—For purchase of materials and supplies; capital equip¬
ment and reduction of note debt; and for working cap-

ing General stock.

—

per

—None.

1 filed 50,000 shares of common stock (par
$25)
$2,000,000 of five-year 5% notes, series 1955. Price
—Of stock, $28 per share; and of
notes, at 100% of prinProceeds

25,000 shares of class A

Price—$10

$2.50)

stockholders

ca

com¬

share.

Panama)
,

Proceeds—For

and

Panama

.

•

July

cipal amount.

or

Mining Corp., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of cap¬
(par one cent). Price—Five cents per share.

related activities.

Oil

To purchase real estate

ital stock

—$6.25

Uranium &

—

Rocket

.July 15

stock

(par $100)
stockholders in

six

Underwriter—Stanley Cooper Co., Inc.,

common

and

40

N. M.

Proceeds

Interest therein.

•

of

Prices—For class A, 36 cents per share; and for class
B,
cents per share. Proceeds—For
expenses incident to
mining operations,- Underwriters
Paul E. Baker and

.

share for stock.

Rheem Manufacturing Co. (8/18)
Aug.-2 filed $25,000,000 of 20-year sinking fund deben¬
tures due Aug. 1, 1975. Price—To be supplied by amend¬
ment. ' Proceeds—To retire an outstanding loan of ap¬
proximately $14,000,000 and for general corporate pur¬
poses.
Underwriter—Blyth & Co., Inc., San Francisco,
Calif., and New York, N. Y.

547,363
(voting) stock (par 10 cents).

class B

common

of

address.

Realty, Inc., Cincinnati, Ohio
March 8 filed $1,000,000 of 5 Vz% cumulative convertible
debentures due Jan. 1, 1980 and 25,000 shares of common
stock (no par). Price—Par for debentures and
$100 per

Cincinnati, O.

.Orange Community Hotel Co. in the ratio of $120 of new
debentures for each $100 of debentures and 20
shares of
stock of the Community
company. Underwriter—None.

j

& Co., same

Revere

(par 50 cents).

r

(par

held.

"..

■.

•

,

Corp.
(letter of notification)

12

stock

ing

B

Oasis Uranium & Oil
Corp.,
June 8 (letter of notification)

.4%

Smith-Dieterich

July

expenses incident to mining operations.
Bldg., Montrose, Colo.
Underwriters—
General Tiivesting Corp., New York, N. Y., and Shaiman
& Co., Denver, Colo.
\ >■

(par $1). Price—$10 per share. Proceeds—For ac¬
payable,: research and development,, working
^capital and repayment of notes held by officers. Office—

.

mining operations. Office—Fort Collins,
Underwriter—Carroll, Kirchner & Jaquith, Inc.,
Denver, Colo.
* ,/

Office^^yant

stock

stock

%

i

(letter of notification) 3,000,000 shares of com¬
stock (par one cent).
Price —10 cents per share).

Proceeds—For

ceeds.^^r^r<

counts

1

•

Aircraft & Uranium Co.

17

Colo.

Radium Hill Uranium, Inc., Montrose, Colo.
July 19 (letter of notification) 625,000 shares of common
stock ^BLypne cent).
Price—32 cents per share. Pro-

Albert a,/Canada.

53

June

—

New York.

.

a synthetic
capital an& other corporate purposes.

.July 13

Silvaire

Pyramid Electric C6.'
J " *
'
May 3 filed 50,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds — To
selling stockholders. Underwriter
S. D. Fuller & Co.,

r

>

Proceeds—To buy land and
fertilizer plant; and for working

'^Norton

Colo.

ver,

.

be supplied by amendment.

New

—

Prospect Hill Golf & Country Club, Inc.
July 8 (letter of notification) 11,900 shares of preferred
stock.
Price—At par ($25 per share). ' Proceeds—For
swimming pool, club furnishings and equipment, golf
course and organization and develoment
expense. Office
(•/—Bowie, Md.; Underwriter—L. L. Hubble & Co., Inc.,
Baltimore, Md.
O

to be offered in units

of $50 of debentures and five shares of stock.
construct

(Victor L.) Co., Kansas City, Mo.
(letter of notification) $50,000 of 6% five-year

.

Church

.

,

.

Office—50

Under¬

Shumway Uranium, Inc., Moab, Utah
(letter of notification) 1,200,000 shares of com¬
mon
stock (par one cent).
Price—25 cents per share.
Proceeds—For mining expenses. Office
6 Kirby St.,
Moab, Utah. Underwriter—Skyline Securities Inc., Den¬

mon

accounts

McBurney Bldg., Tulsa, Okla.

June 20

1, 1960. Price—100% of
principal amount. Proceeds—For general operating capi¬
tal. Office
1600 Baltimore Ave., Kansas City, Mo.

-debentures, series A and B, due 1965, and 850,000 shares
of

Office—417

writer—None.

•Underwriter—None.

Northwest Nitro-Chemicals, Ltd. (8 23)
July 2! filed $8,500,000 of 10-year subordinate

"

ties.

—

repay

new

common

convertible debentures due July

(letter of notification) 4,438 shares of common
stock (ho par)
being offered for subscription by stock¬
holders cf record July 21 on the basis of one share for
each 3 V2 shares Jield-(with an
oversubscription privi¬
lege); rights to expire on Aug. 19.-Price—$30 per

Inc.

stock

Savoy Oil Co., Inc., Tulsa, Okla.
July 8 (letter of notification) 20,000 shares of common
stock (par 25 cents) to be offered for subscription by
stockholders of record July 29 on a l-for-13 basis; rights
to expire on Aug. 15.
Price—$7 per share. Proceeds—•
For exploration, development and
acquisition of proper¬

Utah.
Underwriter — TransNew Orleans, La., and Salt

(letter of notification) 640,000 shares of

July 20

June 23

share.

common

/^Phillips

Northport Water Works Co.

Co., Chicago, 111.

Fe Uranium & Oil Co.,

—
10 cents per share.
Office—416 Indepen¬
Bldg., Colorado Springs, Colo. Underwriter—Co¬
lumbia Securities Co., Denver, Colo.

Price—At par (10 cents per, share). Proceeds—
mining costs. Office—613 Simms Building, Albu¬
querque,
N. Mex.
Underwriter — Western Securities
'Corp., Salt Lake City, Utah.

^

stockholder.
Underwriter—

selling

St., Chicago, 111.

(par one cent). Price
Proceeds—For mining operations.

For

mining expenses, etc/ Office—312 East Crook St., Goldfield, Nev. Underwriter— Utah Urahium Brokers, Salt

&

dence

stock.

Neva-U-Tex Uranium, Inc.,
Goldfield, Nev.
July 15 (letter of notification) 4,000,UUU snaies of cap¬
ital stock. Price—Five cents
per share.. Proceeds—For

Proceeds—To

So. LaSalle

Majf 26 (letter of notification) 2,959,500 shares of com¬
mon

Permian Basin Uranium Corp.

June 2

University
Lindquist Securities,

•

City, Utah.

Santa

Price—10 cents per share. Pro¬
expenses.
Office — 688 East 21st

mining
Salt Lake City,
Western Brokerage Co.,
Lake City, Utah.

stock (par one cent). Price—P'ive cents
per share. Pro¬
ceeds—Fcr mining expenses. Office—156 No.

share).

per

35

(par five cents).

ceeds— For

Navajo Cliffs Uranium Corp., Provo, Utah
July 6 (letter of notification) 6,000,000 shares of common

Lake

to mining operations.
Junction, Colo. Underwriter
Denver 2, Colo, and Salt

City, Utah.

stock

$2

Office—10

Cruttenden

Pelican Uranium Corp., Salt Lake City, Utah

National Credit Corp., Phoenix, Ariz.
May 6 filed 300,000 shares of common stock (par $1).
Price—$3 per share.
Proceeds—For working capital.

Ave., Prcvo, Utah. Underwriter —
Salt Lake City, Utah.
,•
r

to

incident

expenses

Office—530 Main St., Groad
—Columbia Securities Co.,

acquisitions. Underwriters
—Rambo, Close & Kerner Inc., Philadelphia, Pa.; and
J. S.^Hcpe & Co., Scranton, Pa.

■

(595)

each.
common

Price—At market (estimated at $1.62^

Proceeds—For

current

liabilities,

overhead

Continued

on

page

and

$6

36

The Commercial and Financial Chronicle...

(596)

share.

Continued from page 35
operational expense, advertising, research, development
eiio manuiacturing. Office—221 West Charleston Blvd.,
Las Vegas, Nev.
Underwriter—Utah Uranium Brokers,
Nev.

Las Vegas,

P O. Box

535, Provo, Utah.

/

stockholders of record July 27, 1955 on
of debentures for each 50 shares of
stock held; rights to expire on Aug. 15. Price—At par
tion by common

Underwriter—

Electronics

stock

(8/17)

Corp.

I

notification) 199,999 shares of common

Price—$1.50 per share. Proceeds—•
For acquisitions and working capital.
Office—728 Gar¬
den St., Carlstadt, N. J. Underwriter—Batkin & Co., New
(par 10 cents).

June

(letter of notification) 9,200 shares of common
(par $5) to be offered for subscription by stock¬
Price—$30

working capital

per

share.
Proceeds—To increase
expansion.
Office — 1409

for agency

Magnolia Ave., Knoxville, Tenn. Underwriter—Jesse C.
Bowling, 16 M Street, Bedford, Ind.
•

Texas

Transmission

Eastern

offered

of Texas

in

Eastern

duction stock.

Company

80%

effective
•

The offer is

before Sept.

or

duction
own

common

of Transmission stock for each 2.6 shares of Pro¬

share

on

Corp.

stock (par $7)
exchange for shares of capital stock
Production Corp. in the ratio of one

July 25 filed 273,906 shares of

being

contingent

upon

the tender

12 of at least 263,402 shares of Pro¬
so

that Transmission

will thereafter
Statement

of Production capital stock.

or more

Toy Co., Houston, Texas (8/15)
July 8 (letter of notification) 300,000 shares of common
^stock (par 25 cents).
Price—$1 per share. Proceeds—
Tor payment of accounts payable of operating company;
•expansion and working capital. Office—2514 McKinney

Ave., Houston, Texas. Underwriter—Ray Johnson & Co.,
Inc., Houston.
Texas Western Oil & Uranium

Co., Denver, Colo.
June 15 (letter of notification) 5,960,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining expenses.
Office — 407 Denver
National

Bldg., Denver, Colo.
Co., same address.

Underwriter—Floyd Kos-

Texboard, Inc., Dallas, Texas
17 filed $1,500,000 of 6% series A debentures due
aerially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,000
of 6% series B convertible debentures due serially from
1, 1962 to Aug. 1, 1966.

amendment.

Price—To be supplied by

Proceds—To construct and operate a manu¬

facturing plant near Orange, Tex., for the purpose of
ananufacturing insulation
building products.
Under¬
writer—None. C. F. McDougal of Dallas, Tex., is Presi¬
dent.

Thunderbird

.

Uranium

Corp.
June 9 (letter of notification) 3,000,000 shares of common
atock.
Price—At par (10 cents per share).
Proceeds—
Fpr mining expenses. Office—915 Simms Bldg., Albu¬
querque, N. M. Underwriter—Hicks, Newton & Co., Inc.,
Denver, Colo.
Trans-National

Uranium & Oil

(8/15)
July 1 filed 2,000,000 shares of common stock (par 20
cents). Price—To be supplied by amendment (expected
at $1.50 per share). Proceeds—To acquire part of prop¬
erties presently subject to option in favor of company,
and for expenses incident to mining and oil activies.
I

Office

—

Dallas, Tex.

Corp.

Underwriter

—

Garrett Brothers,

Inc., Dallas, Tex.
Triangle Mines, Inc., Salt Lake City, Utah
May 3 (letter of notification) 100,000 shares of
stock.

Price—At

par

(50 cents

For mining operations. Office
Lake City, Utah. Underwriter

per
—

—

share).

common

Proceeds—

506 Judge Bldg., Salt

Lewellen-Bybee Co.,

Washington, D. C.
Tri-State Natural Gas Co., Tucson, Ariz.
July 6 (letter of notification) 200,000 shares of

.

stock

(par 10 cents).

Price—$1.50

per

share.

common

Proceeds—

For expenses incident to oil and gas activities. Office—
15 Washington St., Tucson, Ariz.
Underwriter—Frank

L. Edenfield &
.

Co., Miami, Fla.

Tungsten Mountain Mining Co., Fallon, Nev.

June 8 (letter of notification) 149,800 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—For

mining operations.

Address — P. O. Box 456, Fallon,
Churchill County, Nev. Underwriter—H. P. Pratt & Co.,

Seattle, Wash.
Two Jay Uraniiim Co., Salt Lake City, Utah
May 16 (letter of notification) 3,000,000 shares of com¬
mon stock
(par three cents). Price—10 cents per share.

Proceeds—For

Place, Salt
States

June 2
mon

mining expenses.
Office—32 Exchange
City, Utah. Underwriter — Western
Okla.

Lake

Investment Co., Tulsa,

Ucon

Uranium

Corp., Salt Lake City, Utah

(letter of notification) 5,000,000 shares of com¬
(par one cent). Price—Five cents per share.

stock

Corp., Las Vegas, Nev.

ir U-H Uranium Corp., Porvo, Utah
July 13 (letter of notification) 6,000,000 shares of
assessable

stock

Proceeds

Uranium

&

(par
For

—

Corp.
5,998,000 shares of com¬

cent). Price—Five cents per share.
mining operations. Office — 7900 West

Avenue, Denver, Colo.
Securities Co., Denver, Colo.

Underwriter

—

Columbia

—

Inc., Houston, Texas
July 8 filed 500,000 shares of common stock (par two
mills).
Price—$2.50 per share.
Proceeds—For equip¬
ment, mining costs, oil and gas development, and other

Underwriter—None.

corporate purposes.
Uranium

Prince

West

Ltd., Virginia City, Nev.
$600,000 of Grubstake Loans to be offered
$25 or multiple thereof. Proceeds—75%
to be invested in U. S. Savings bonds and the balance
for equipment and exploration
and development ex¬
penses.
Underwriter—None.

Wicker-Baldwin

common

stock.




(letter of notification) 30,000,000 shares of
common
stock
(no par).
Price—One cent per share.
Proceeds
For mining activities. Office — 1101 South
—

State St., Salt

non¬

City, Utah.

Lake

Underwriter—Andercity.

USeven Corp., Stockton, N. J.
June 28 (letter of notification) 1,000,000 shares of com¬
stock

cent). Price—25 cents per share.
Proceeds
For equipment, drilling costs, and working
capital. Business—To explore, develop and operate ura¬
nium mining properties. Address—P. O. Box 99, Stock¬
(par

one

—

Underwriter—None.

ton, N. J.

Utah Power &

Light Co. (9/13)
of first mortgage bonds due
1985. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders; Halsey, Stuart & Co.
Inc.; Union Securities Corp. and Smith, Barney & Co.
(jointly); Kidder, Peabody & Co.; Salomon Bros. &
Hutzler; White, Weld & Co. and Stone & Webster Se¬
curities Corp, (jointly); The First Boston Corp.; Lehman
Brothers and Bear, Stearns & Co. (jointly). Bids—To be
received up to noon (EDT) on Sept. 13 at Two Rector
Street, New York, N. Y.
July 26 filed

$15,000,000

Utah Power &

Light Co. (9/13)
July 26 filed 177,500 shares of common stock (no par).
Proceeds—To repay bank loans and for construction pro¬
gram. Underwriter—To be determined by competitive
bidding. Probable bidders: Lehman Brothers; Union Se¬
curities Corp. and Smith, Barney & Co. (jointly); Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane
(jointly); .Blyth & Co., Inc.; The First Boston
Corp.
Bids—To be received up to noon (EDT) on
Sept. 13 at Two Rector Street, New York, N. Y.
Utah Southern

June 6

stock.

Uranium Co., Las Vegas, Nev.
(letter of notification) 3,000,000 shares of capital

Price—At

Office—616 Sixth St., Rapid City,
Underwriter—Driscoll-Hanson, Inc., same city.

For mining expenses.

S. D.

Yellow Circle

mon

13

Vanura

stock

Proceeds

For

mining

tive

Underwriter

—

Uranium

—For

writers—Probably

Bangor & Aroostook

and

Smith,

RR.

1, the ICC granted exemption from competitive
bidding of an issue of $4,000',000 40-year income deben¬
tures.
Proceeds—To redeem 38,280 shares of outstand¬

ing $5 cumulative

preferred stock,

Co.

Blackhawk Fire & Casualty Insurance

plans to issue and sell
Price—Expected at $5
per share. Proceeds—To acquire Blackhawk Mutual In¬
surance
Co., Rockford, 111.
Underwriter —Arthur M.
Krensky & Co., Inc., Chicago, 111.
April 5 it was reported company
200,000 shares of common stock.

Cavendish Uranium
sale

Mines Corp.

was announced company
debenture issue of several

19 it

April

of

a

Proceeds—For
and for

a

plans issue and
dollars.

million

concentrating mill, mining equipment

Underwriter—James

underground development.

Anthony Securities Corp., New York.
Central Maine Power Co.
Dec.

31, W. F. Wyman,

President, stated that company

plans to issue and sell some additional common stock,
par $10 (probably to stockholders) in the latter part of
1955. Proceeds—For construction program. Underwriter
—May be determined by competitive bidding. Probable
bidders: The First Boston Corp. and Coffin & Burr, Inc.

(jointly); Harriman Ripley & Co. Inc.; Blyth & Co., Inc.
Kidder, Peabody & Co. (jointly). Meeting—Stock¬
on
May 11 voted to increase the authorized
common
stock from 3,250,000 to 3,500,000 shares.
Of¬

and

holders

fering—Probably

in

September.

Chenango & Unadilla Telephone Co.
common
stockholders of record July 27 were
the right to subscribe on or before Aug. 16 for
shares of common stock (par $20) on
the basis of one new share for each 3 Mi shares held by
bona fide residents of New York Slate (with an over¬

Aug.

1

given

25,000 additional

privilege).
Price—$22.50 per share. Pro¬
outstanding short-term notes.
Under¬
writers—W. E. Hutton & Co. and Laird, Bissell & Meeds,
subscription

retire

ceeds—To

both

of New York City.

(8/17)
receive bids
up to noon
(CDT)~ Aug. 17 for the purchase from it of
$4,350,000 of equipment trust certificates to mature in
30 equal semi-annual instalments from March 1, 1956 to
Sept. 1, 1970. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros.'& Hutzler; Kidder, Peabody & Co.
•
Chicago, Milwaukee, St. Paul & Pacific RR.
July 13 stockholders approved the creation of an issue
of $60,000,000 5% income debentures, series A, due Jan. 1,
2055, being offered in exchange for 600,000 shares of
outstanding 5% $100 par preferred stock, series A, on a
par for par basis; offer commenced Aug. 1 and will run
through Aug. 31. " Dealer-Manager — Merrill Lynch,
Chicago,

Burlington & Quincy RR.

Aug. 1 it was announced company plans to

I. J.

Denver, Colo.

(three cents

Corp.

Securities
York.

Aug.

&

Price—At par

Union

Barney & Co., both of New

Drilling Co., Monticello, Utah
notification) 2,000,000 shares of com¬
Proceeds
mining operations.
Underwriter—Skyline Secu¬

tal stock.

Bids—Expected to be received on

& Co.

it Atlantic City Electric Co.
Aug. 1, B. L. England, President, announced that the
directors are now considering the sale to the public of a
small amount of common stock early next year. Under¬

Price—At par (10 cents per share).

Wabash Uranium Corp., Moab, Utah
June 10 (letter of notification) 10,000,000

Weld

Oct. 25.

Co., New York. Name Change—The company
formerly known as San Miguel Uranium, Inc.

stock.

issue and sell

bidding. Probable bidders; Lehman Brothers; Blyth
Smith, Barney & Co. (jointly); Equitable
Corp. and Union Securities Corp. (jointly);

White,

June 20 (letter of
mon

(10/25)

Light Co.

Securities

Schenin &

Vas

&

& Co., Inc. and

per

expenses.

Power

shares of cumulative preferred stock (par
$100). Proceeds—To repay bank loans and for new con¬
struction. Underwriter—To be determined by competi¬

Uranium, Inc., Salt Lake City, Utah
3,000,000 shares of com¬
(par one cent). Price — 10 cents per share.

—

Securities

about 80,000

June 16 (letter of notification)
mon

O. Box

Address—P.

activities.

May 27 it was reported company plans to

notification)
($1

oil

and

Prospective Offerings
Arkansas

Lake City, Utah.

Price—At par

mining

Newcastle, Wyo. Underwriter—Empire
Corp., Salt Lake City, Utah.

300,000 shares of com¬
share). Proceeds—To
manufacture, process, rebulid and market television pic¬
tures tubes, etc. Underwriter — Zone Investments Co.,
Fort Worth, Texas.
(letter of

(letter of notification) 10,000,000 shares of capi¬
Price—At par (two cents per share). Proceeds

348,

expenses.

stock.

— 223
Petroleum
Underwriter—Morgan

Office

York Oil & Uranium Co.

June 3

Vactron Corp.
mon

expenses.

& Co., same

Utore Uranium & Diata, Inc., Vale, Ore.
July 8 (letter of notification) 10,000,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share.
Proceeds—Expenses incident to mining operations. Of¬
fice—Lytle Building, Vale, Ore. Underwriter—Hansen

May

mining

Salt Lake City, Utah.
city.

Building,

par

Uranium Brokerage, Salt

Uranium Co.

(letter of notification) 5,000,000 shares of com¬
stock. Price—At par (five cents per share). Pro¬

July 22

(10 cents per share). Proceeds—
Office—210 N. Third St., Las
Underwriter—Lester L. LaFortune, same

For mining
Vegas, Nev.
city.

rities Inc.,

Price—At par (five cents per

Salt Lake City, Utah

30

son-Hackett Investment Co., same

Uranium Mining Co.

May 26 (letter of notification) 900,000 shares of common
stock.
Price—At par (25 cents per share). Proceeds—

of

Uranium Technicians Corp.,
June

Pro¬
Sixth

Underwriter—J. W.

Salt Lake City, Utah.
Hicks & Co., Inc., Denver, Colo.
St.,

—For

—

amounts

of capital

(par 2% cents). Price—10 cents per share.
mining expenses. Office—1030 South

ceeds—For

Uranium Properties,

in

(letter of notification) 2,900,000 shares

tal stock.

Mining Co., Wallace, Ida.

April 18 (letter of notification) 1,750,000 shares of com¬
stock. Price
10 cents per share. Proceeds—For
mining operations. Address — Box 709, Wallace, Ida.
Underwriter—Wallace Brokerage Co., same city.
mon

Salt Lake City, Utah

Horse Uranium, Inc.,

White

ceeds— For

Service Corp.,

Universal

Mining, Inc.

(letter of notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds
For mining activities.
Office —105 V2 East
Pikes Peak,
Colorado Springs, Colo.
Underwriter —
Hicks, Newton & Co., Inc., Denver, Colo.

one

Colfax

was

Proceeds—For mining costs.
Office—406 Judge Build¬
ing, Salt Lake City, Utah. Underwriter—Empire Secu¬
rities

mon

mon

Jan.

Feb.

Oil

plywood mill of Walton Plywood
Underwriter—Albert Walter Braedt.
j

Mountain

Wet

June 13 filed

Aug. 5.

Texas

ter &

fields.

related

July 26' (letter of notification)

20

holders.

in mortgage loan business
Underwriter—None.
engage

Lowell, Wash.
stock (par $5,000).

shares of common

June 29

United American Investment Co., Atlanta, Ga.
July 19 filed 3,500,000 shares of common stock no par.
Price—$2 per share. Proceeds—For organization of two
wholly-owned insurance compaies, to be named United
American Life Insurance Co. and Tourists Indemnity Co.;
balance to be used to

296

filed

Co., Inc., etc.

stock

Universal

Tennessee Life & Service Insurance Co.

13

Proceeds—To purchase

June 9

and

Underwriter—Moab Bro¬

Securities, Inc., 368 South State

Washington Plywood Co., Inc.,
June

Underwriter—Mickle & Co.,

corporate purposes.

expenses.

kerage Co. and National

Houston, Texas.

York, N. Y.

stock

Houston, Texas

.

None.
Tel-Instrument

ceeds—For mining

St., Salt Lake City, Utah.

Underwriter—None.

12

other

Consult¬
activi¬

ants, Inc.; for expansion of present merchandising

•

Bldg.,

stock

mon

(in denominations of $500 and $1,000 each). Proceeds—
retire outstanding loans from Commercial Credit

June 28 (letter of

C.

(letter of notification) 61,393 shares of com¬
(no par). Price—$1.25 per share. Proceeds—
To reduce bank loans, and for development costs and
July

To

ties; and for general corporate purposes.

I.

Union of Texas Oil Co.,.

$500

Corp.; to purchase additional stock of Nuclear

M.

Co., Salt Lake City, Utah
May 5 (letter of notification) 260,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For mining expenses.
Office — Judge Bldg., Salt Lake
City, Utah.
Underwriter — Northern Securities, Inc.,
Seattle, Wash.

July 1 filed $2,396,500 of 4%% convertible subordinated
debentures due July 15, 1965, being offered for subscrip¬
basis of

incident to mining op¬
Moab, Utah and

expenses

Office—O.

U-Kan Uranium & Oil

TelAutograph Corp., Los Angeles, Calif.

the

Proceeds—For

erations.

Thursday, August 11, 1955

shares of capi¬
share). Pro¬

Pierce, Fenner & Beane, New York.

per

.

'

••

*..'1

.

-••••.-

1

•

i

,

j

.

1

•

"

;

*

1

#*L

Volume 182

Number 5454

...

The Commercial and Financial Chronicle

37

(597)

Columbia

July 25 it

Gas

was

System, Inc.

-

(9/21)

reported company plans to issue and

$40,000,000 of debentures due 1980.

Proceeds—For

sell

Essex County Electric Co.

July 18 it

con¬

Underwriter—To be determined by
competitive bidding. Probable bidders— Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co. Bids — Planned for
Sept. 21. Registration—Expected on Aug. 25.

Florida
Aoril

24, Willis Gale, Chairman, announced it should be

Proceeds—For

company

the

sell
$40,000,000 to $50,000,000 bonds some time during
year.
Proceeds—For construction program.

—v»

Inc.
July 23, 1954, stockholders authorized issuance and sale
of not to exceed $6,000,000 convertible debenture bonds
in connection with the acquisition of Uranium Mines of
America, Inc. stock. Public offering of $2,000,000 bonds
expected early in 1955. Underwriter — Tellier & Co.,
Jersey City, N. J.

not to

other
the

preferred stockholders

date

for making

The

has

company

of

additional borrowings.
Sachs & Co. and Lehman Brothers,

Goldman,

the

the

authorized

stock

common

proposal

a

(par

$1)

to

both of

500,000

debt

authority

Housatonic Public Service
20

it

was

reported

sell 14,817 additional
of

—Scherck, Richter Co., St. Louis, Mo.

For construction program.

subsequent issuance of

bonds and equity securities.
It
that the first step in the permanent financing
the program will take place sometime late this fall.

appears

be

bidders:
Loeb

Co.

and

Salomon

Bros.

&

plants

Hutzler

(jointly);
Brothers; Union Securities Corp.; The First
Boston Corp. arid Blyth & Co., Inc.
(jointly); White,
Weld & Co. and Shields & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.

2

stockholders
$60,000,000 of

ers

was

common

stock

on

a

tember.

Stockholders to vote Sept. 15.

Doman Helicopters.

Inc.

President, announced stock¬
increase authorized capital stock from

Feb. 17 Donald S. B. Waters,

holders voted

to

1,000,000 shares to 3,000,000 shares in anticipation of
expansion of the company's activities. UnderwriterPrevious financing handled by Greene & Co., New York.
i




25

Sept. 5

on

and

(par $15)
the basis

shares
per

held; rights to
share. Proceeds—

Underwriter—None.

Unsub¬

Morris

Aug. 2 it

Office

726 Jackson

Place, N. W.(
Business—Industrial merchant bank¬
—

Oil

& Metals

reported

Corp., Seattle, Wash.
do some financing

company may

time in the future.

William D. Bost

of Whitcomb

Co., New York, is Chairman of the Board.

an

Sulphur Co.

it

was

(Texas)
reported early registration is planned

undertermined number of
&

common

shares.

Under¬

Co., New York, and Garrett

Co.

of California

announced

was

Aluminum

&

Chemical

Lithium

file

a

9

it

six

shares

held.

Unsubscribed

announced

that

company

registration statement with the

plans

SEC

soon

covering

to
a

proposed issue of 600,000 shares of common stock. Pro¬
ceeds—For general corporate purposes.
Underwriter—

George A. Searight, New York, will head group.

Long Island Lighting Co.
April 23 it was announced company

sell an
series H,
due 1985. Proceeds—For construction program.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders—Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp. and Blyth & Co., Inc. (jointly); W. C. Langley
issue

of

$15,000,000

first

shares

offered

by company after Sept. 6, 1955.

share.

Proceeds—For

to

working capital.

be publicly
Price—$30 per
Underwriter—

None.

Mountain

States Telephone & Telegraph
(10/1)
July 19 directors authorized an offering to stockholders
of 486,881 additional shares of capital stock on basis oJP
Co.

one

share for each five shares held

new

rights to expire

on

Oct. 28.

as

of Sept.

27;

Warrants will be mailed

on

Oct. 1. Price—At par ($100 per

share). Control—Ameri¬

Telephone & Telegraph Co.
presently outstanding common

owns

can

about 86.7% of the
Underwriter —

stock.

None.
Fuel

Gas Co.

company plans to file with the
application to offer its common stock,
exchange for shares of Pennsylvania Gas Co., a prin¬
cipal subsidiary, on a basis of 1.45 National shares for
was

announce

SEC this week

an

in

•

Pennsylvania Gas share.

New

Haven Clock

&

Watch

Co.

Aug. 3 it was announced that stockholders approved
a plan of recapitalization and plans to raise not less than
$300,000 of new capital.
Underwriter—Probably Rey¬
New

4

Orleans

it

to, issue

was

Public

announced
first

some

Service

Inc.

that company plans this

mortgage bonds

due

1.985.

year

Under¬

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &

Co.; Blair
Equitable
(jointly);
(jointly);

& Co. Incorporated; The First Boston Corp.;
Securities Corp. and Union Securities Corp.
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
Kidder, Peabody & Co. and Stone & Webster
Securities Corp. (jointly); and Lehman Brothers.

• New York Central RR. (9/8)
will be received on Sept. 8 for the purchase from
the company of $7,500,000 equipment trust certificates
to mature annually to, and including 19r/0. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutz¬
Bids

ler.

State Electric

York

New

July

it

8

was

announced

&

Gas

company

Corp.

plans

(10/19)

to

issue

andl

sell $25,000,000 of first mortgage bonds due 1985. Pro¬
ceeds—To repay bank loans and for new construction.

mortgage

plans to

bonds,

Peabody & Co.; Harriman Ripley .& Co. Inc.; The First
Boston Corp. and Glore, Forgan & Co. (jointly); Blyth
& Co., Inc. and Smith, Barney & Co. (jointly); Bidsr—
Expected to be received

on

Oct.

19.

New York

Telephone Co.
Jan. 17, Keith S. McHugh, President, announced that
the company will have to raise more than $100,000,000
of new capital money to aid in carrying out its expan¬
sion and improvement program which will cost ap¬
proximately $200,000,000. Underwriter—For and bonds;
to be
determined
by competitive bidding.
Probable
bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.
Northern Illinois Gas Co.
June 14,

Marvin Chandler, President, announced that the
plans to spend $60,000,000 on new construction
through 1958, and that about $25,000,000 would be raised
through the sale of bonds in the period. Underwriters—
The First Boston Corp., Halsey, Stuart & Co. Inc. and
Glore, Forgan & Co.
company

Developments, Inc., Cleveland, Ohio
was

to offer to its

Aug. 8 the right to subscribe on
Aug. 29 for 38,600 additional shares of capital
(par $10) on the basis of one new share for each

before

Probable

Corp.

Office—517 Stephens St.. S.W., Atlanta. Ga.
June

company plans

stockholders of record

Underwriter—To be determined by competitive bidding.
bidders: Halsey, Stuart & Co. Inc.; Kidder,

Dallas, Tex.; and others.

Keystone Wholesale Hardware Co., Atlanta, Qti
was stated that the company plans at a later
date to offer additional shares for sale nationally.
Ad
offering of 16,666 shares of common stock was recently
made to residents of
Georgia only at $3 per share
t

Plan

National

Jan. 27 it

one-for-five

the

each

stock

July 11 it was reported that company is understood to
be contemplating the sale to the public of 700,000 shares
of sinking fund preferred stock this Fall and private
debt financing of about $40,000,000.
Stockholders will
vote Aug. 12 on approving an increase in the authorized
preferred stock from 700,000 to 1,500,000 shares. Pro¬
ceeds—For
expansion program and working capital.
Underwriters—The First Boston Corp., New York; and
Dean Witter & Co., San Francisco, Calif.

stockhold¬

offering.
Proceeds—To retire
first mortgage note held by RFC in amount of $38,180,
000, through payment of $32,180,000 in cash and issuance
of $6,000,000 in 6% cumulative preferred stock at par
($100 per share); the remainder will be used for work¬
ing capital.
Underwriter—Halsey, Stuart & Co. Inc.,
New York and Chicago. Offering—Expected late in Sep¬
to

was

Kaiser

an

prior

Hallsey, Stuart

Co., Inc.; Salomon Bros. & Hutzler.

Feb.

of this year.

& Co.,

oversubscription privilege).
Price—Of
stock, to be not more than 80% of the market value im¬
mediately

record

Price—$22

writers—L. D. Sherman

a plan which will include the
public sale of $30,000,000 15-year first mortgage bonds
the sale to present common shareholders of 503,000

of

•

nolds & Co., New York.

of

and

shares

&

will offer additional convertible debentures to
shareholders, the latter probably sometime in the Au¬

March 30

^ Detroit Steel Corp.

(with

(9/5)
plans to issue

,

Bids will be received by the
company at St. Louis, Mo.,
on Aug. 18 for the
purchase from it of $3,675,000 equip¬
ment trust certificates. Probable
bidders:

International Bank, Washington, D. C.
April 25 it was announced company, in addition to plac¬
ing privately an issue of $500,000 convertible deben¬

Isthmus

Aug. 8 directors approved

basis

for

26.

Corp.

common

planned in the Fall of this year. Investment Adviser—
Capital Research & Management Co., Los Angeles, Calif.
Underwriter—Kidder, Peabody & Co., New York.

without underwriting.

additional

G.

International Resources Fund, Inc.
July 20 it was announced this company will be formed
to specialize in worldwide investment in the field of
natural resources companies. An offering of stock
is

Price—$30 per

made to

Office—Room 717, 141 Broadway, New York
0, N. Y.
Pacific RR. (8/18)

★ Missouri

each

&

approved a proposal authorizing
convertible debentures.
Previous

offer of convertible debentures

increasing

on

Underwriter—A.

common

some

Detroit Edison Co.

May

share

Sept.

International

ing and 25% stock dividend.

about

Majestic Auto Club, Inc.
Aug. 25 it was announced company plans to offer 500,000 shares (par five
cents) to the motorist and general
public shortly after completion of the current
offering
of 100,000 shares to service station
owners and operators.

preferred stock, $50

May 23 it

Meet¬
approving financ¬

ing—Stockholders to vote July 28 on

bidders

for new bonds
may include Halsey;
Inc.; Kidder, Peabody & Co.; W. C. Langley'
& Co.; Coffin &
Burr, Inc.; The First Boston Corp.;
Merrill Lynch,
Pierce, Fenner & Beane; Blyth & Con¬
ine.; Glore, Forgan & Co.

>

ers.

Proceeds—To increase capital and surplus.

share.

Probable

Aug. 1 it

Bank,

share for each four shares held.

new

on

Washington, D. C.

Denver, Colo.
I
June 30 it was announced that company plans to offer
to its stockholders the right to subscribe for 50,000 addi¬
tional shares of capital stock (par $10) on the basis of
one new

Miller, President, said company has
up the idea of refunding the
$17,000,000 5%% '
mortgage and collateral trust bonds due 19781

given

first

Hupp Corp.
May 13 stockholders approved a proposal increasing the
authorized capital stock from 3,000,000 to 4,200,000 shares
(200,000 of such increased shares shall be (new) serial

tumn

(jointly); W. C. Langley & Co. (2) For common stock
(which may be first offered to stockholders)—W. C.
Langley & Co. and Union Securities Corp. (jointly);
Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly); Carl M. Loeb, Rhoades &
Co.; Blyth & Co., .Inc. and The First Boston Corp.
(jointly); White, Weld & Co. and Shields & Co. (joint¬
ly); Lehman Brothers.
(3) On preferred stock—Blyth
& Co., Inc. and The First Boston Corp. (jointly); White,
Weld
& Co.
and
Shields &
Co.
(jointly); Lehman
Brothers; W. C. Langley & Co. and Union Securities
Corp. (jointly); Morgan Stanley & Co.
National

not

the Ford

tures,

Lehman

Denver

To

par value and 1,000,000 shares shall
stock, $1 par value); also waiving of pre¬
emptive rights to such increased shares.

approximately $40,000,000. Underwriters
determined by competitive bidding.
Probable
(1) For bonds—Halsey, Stuart & Co. Inc.; Kuhn,

&

one

be

which will cost
-—To

—

Feb. 14, E. Spencer

scribed shares to be sold to highest bidder.

Light Co.
July 26, Stuart Cooper, President, announced that the
company is presently discussing arrangements for tem¬
porary
financing through banks and is planning the

two

stockholders of

common

expire

Power &

includes

—

proposal

company

shares of

reported registration is expected this week
of about 260,000 shares of common stock.
Underwriter
was

program

Underwriter—Probably Blair & Co. Incor¬

stock
a

to

Aug. 1 it

construction

approximately $1,500,000 through the
However, no immediate financing

Maine Central RR.

Friee—Expected

p uoiic.

Proceeds

<

to

present

reported previously that the company

porated, New York.

Offering—Probably not until "latter part

^ Day-Brite Lighting, Inc., St. Louis, Mo.

The

tile

Inc., New York^

June

Co., New York.

of

804,063 shares out¬

are

was

raise

.

& Co.

shares to 1,000,000 shares to provide for future
financing
and expansion. Underwriter—Hirsch &

Delaware

It
to

increase

to

from 1,000,000

sale of 150,000 shares.
is planned.

mortgage

Heller (Walter E.) & Co.
July 18 it was reported that the company may^be con¬
sidering some new financing. Underwriter—F. Eberstadt

increase

from

to

niauc

$20,000,000.
Becker & Co. (Inc.), Chicago, 111.

New York.
Daitch Crystal Dairies, Inc.
April 28 stockholders approved

oc

$60 per share.

Hammermill Paper Co.
May 10 stockholders approved

plans
Underwriters—

any

first

or

present

no

of

16 it was reported company may issue and sell
$10,000,000 first mortgage bonds if market conditions
permit. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Lehman Brothers;
Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co.
(jointly); Salomon Bros.
& Hutzler and Union Securities
Corp. (jointly); Kuhn,
Loeb & Co. and A. C.
Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬
ly); Stone & Webster Securities Corp.

an

thereof.

issue and sell

may

May

additional $25,000,000 of debentures or
indebtedness maturing later than one year after
exceed

company

$12,000,000

Gulf States Utilities Co.

near

creation

and

of 1955, if then."

Underwriter

approved

vwul

around

Foundation.

Continental Can Co., Inc.

18,

oliuiw

be

to

Consolidated Uranium Mines,

April

proposed

announced

$10,000,000

2,000,000 shares (there

standing).

proposal

a

(par $1.25)

Stuart & Co.

Stanley & Co.; The First Boston Corp.

in

was

Offering—Expected this Fall.

Corp.

Ford Motor Co., Detroit, Mich.
March 15 it was reported that following a probable 10for-1 stock split, an offering of
approximately 4,000,000

Underwriter—To be determined by competitive bidding.
bidders: Halsey, Stuart & Co. Inc.; Morgan

future of $2,000,000 convertible debentures.
—Van Alstyne, Noel & Co.. New York.

it

shares to

iyn*>

Probable

Continental Aviation & Engineering Co.
13 it was reported company plans sale

Power

the authorized common stock

Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
ner
& Beane
(jointly); Lehman Brothers and Blyth &
Co., Inc. (jointly); Glore. Forgan & Co.; and The First
Boston Corp. Offering—Expected late in 1955 or
early

current

June

Lucky Stores, Inc.
April 20 stockholders approved

bonds.

new

about

Consolidated Edison Co. of New York, Inc.
June
14 it was
announced
company
expects to
from

14

between

undertaxes its next imaiieing.

construction, which, it is estimated,
$125,000,0000 in 1955. Underwriters—
For last equity financing were The First Boston Corp.
end Glore, Forgan & Co.
cost

will

Co.; Smith, Barney & Co.; Baxter, Williams & Cow
Offering—Expected late in 1955.

issue and sell

bonds. Underwriter—To

mortgage

Blair & Co. Inccorporated.

Commonwealth Edison Co.
Fall before the

&

reported company plans to

be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);

struction program.

Jan.

was

additional first

some

Northern
March

29

ments

for

it

States Power Co.

announced

(Minn.)

that

capital require¬
$31,000,000. Present
plans contemplate these funds will be obtained tem¬
porarily from short-term bank loans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co^
was

1955

will

new

approximate

Continued

on

page

38

The Commercial and Financial Chronicle...

(598)

38

Thursday, August 11, 1955

'

Inc '

•'

Blyth & Co., Inc. and

The First Boston Corp. (joint¬

Merrill

& Co.; Lehman Brothers and Riter
(jointly); Glore, Forgan & Co.

ly); Smith, Barney
& Co.

Nuclear-Electronics

merger into company of Olympic Radio &
Television, Inc., and Victoreen Instrument Co., to issue

proposed

$2,500,000 of debentures. Underwriters—Van
Noel & Co. and Barrett Herrick & Co., Inc.,
both of New York. Meeting — Stockholders to vote on
merger in August, 1955.
sell

and

Alstyne,

(9/20)
t
.
reported company plans to issue and sell

Ohio Power Co.
June 20 it was

60,000 shares of cumulative preierred
Proceeds—For construction program.

stock (par $100).

by

for Aug. 17. Bids—
(EDT) on Sept. 20.

Registration—Planned

(jointly).

Expected to be received up to 11 a.m.

(9/20)

Ohio Power Co.

plans to issue and

$17,000,000 of first mortgage bonds due 1985. Pro¬
ceeds—To retire bank loans and for construction program.
Underwriter—To be determined by competitive bid¬
sell

Haisey, btuari & to. inc.;
Inc. and Stone & Webster

(jointly); Kuhn, Loeb & Co.; Blyth
& Co., Inc.; Union Securities Corp. and Salomon Bros
& Hutzler (jointly); The First Boston Corp. Registra¬
tion—Planned for Aug. 17.
Bids—Expected to be re¬
ceived up to 11 a.m. (EDT, on Sept. 20.
Corp.

Securities

plans to Issue and
$1,000,000 of first mortgage bonds and $300,000 of
additional common stock (the latter to stockholders) in
near future.
Proceeds—To retire bank loans and reim¬
burse the company's treasury for construction expendi¬
it was reported

28

March

Pure Oil Co.

convertible

a

company

sell

tures.

Power

& Light Co.

(9/27)

Expected

about Aug. 24.

on or

Pacific Power &

July 5 it

(10/5)

Light Co.

reported company plans to issue and sell

was

30,000 shares of cumulative preferred stock (par $100).
Underwriter—Expected to be local dealers. Registration
—Expected

reported company plans to issue and sell

was

later this year $9,300,000 of

first mortgage bonds. Pro¬
repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding,
probable bidders: Haisey, Stuart & Co. Inc.; The First
Boston Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,

ceeds—To

Inc.

writer—Bache &

it was reported company proposes issuance and
$7,500,000 of preferred stock later this year. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For¬
gan & Co. (jointly); Kidder, Peabody & Co.; The First
Boston Corp.; Smith, Barney &
Co.; Harriman Ripley &

sale of

Co. Inc.

Reading Co.
June 7 stockholders approved

the future, the directors should deem

the

conditions

of

shares of
of

one

Oct.

the proceeds for
bond

financing

its
was

con¬

ar¬

privately through Drexel & Co. and The First
Corp.

Peoples National Bank of Washington, Seattle,
Wash.
June

30

it

was

announced

shares of capital stock

Bank

(par $20)

plans to issue

as a

25,000

stock dividend, and

like number of shares will be offered for

subscription

by stockholders.
Public

Aug. 8
Utility

Service

Electric

rights

4;

termined

&

Gas

Co.

(10/4)

applied to New Jersey Board of Public
Commissioners for authority to issue and sell
of debentures.
Underwriter—To be deter¬

company

tional! shares of common stock (par $12.50).
From sale of
to

bank

a

and

ment

an

Public Service Electric & Gas Co.

Aug. 8 it was announced that company may issue and sell
early in October 250,000 shares of cumulative preferred

obtain

/

funds

sources—at




York. Meeting—Stock¬

Ry

(8/24)

by competitive bidding. Probable bidders: Hai¬
Stuart & Co. Inc.; The First Boston Corp.; Union
Securities Corp.; Blyth & Co.. Inc. and Harriman Rioley
& Co. Inc. (jointly). Bids—Expected to be received up
to noon (EDT) on Aug. 24 in New York.
•

San

Diego Gas & Electric Co. (11/30)
Aug. 2 it was reported company plans to sell $18,000,000
of bonds. Proceeds—To repay bank loans and for new
Underwriters—To be determined

by

com¬

Probable bidders: Haisey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Blyth & Co., Inc.; Union
Securities Corp. and Merrill Lynch, Pierce, -.Fenner &.
Beane
(jointly); Lehman Brothers; The First Boston

(jointly.

Corp.; White, Weld & Co. and Shields & Co.
Bids—Expected Nov. 30.
Southern California Gas Co.
Feb. 28 it

reported company plans to issue and sell

was

of

first

bonds..

mortgage

Application

hat

Bids received on
Inc.;
Blyth & Co., Inc.; White, Weld & Co. and Union Secu¬
rities Corp. (jointly); Lehman Brothers.
emption

Southern Co.

July 28 it
to

be

for

least

The company

to

construction

the

extent

has scheduled

from Haisey, Stuart & Co.

were

(10/19)

stockholders

stock

(par 5)

shares

held

1,004,870

on

about

Oct.

19;

Warrants to be mailed

named

by

loans

company

and

for

on

on

Oct. 17.

investment

rights to

shares of
share for
expire on

Oct. 21.

Price—To

additional

basis of

a

in

one new

Proceeds—To repay
additional

stock

of

Underwriter—To be determined
by competitive bidding.
Probable bidders: The First
Boston Corp., Ladenburg, Thalman & Co., Carl M. Loeb,
Rhoades & Co. and Wertheim & Co. (jointly); Blyth &
subsidiary companies.

Co., Inc., Bear, Stearns & Co. and Dean Witter & Co.
(jointly); Union Securities Corp. and Equitable Securi¬
ties Corp. (jointly); Lehman Brothers; Morgan Stanley
&

Co.; Kidder, Peabody & Co., and Merrill Lynch,
Pierce, Fenner & Beane.
Bids—Tentatively scheduled
to be received up to 11 a.m. (EDT) on Oct. 19.
Regis¬
tration—Not expected until Sept. 21.
Southland

Frozen

of

stock.

was

6%

Foods,

Inc.

debentures

and

60.000

shares

of

common

York

City.# Under¬
King, Libaire, Stout & Co., New York.

Offering—Expected in July.

Instrument Corp.
votesd to approve an authorized
(par $10),
of which 300,000 shares (to be convertible into common)
are to be publicly offered.
Proceeds—For working capi¬
Sterling

Precision

-

—
To be determined by competitive;
Probable bidders: Haisey, Stuart & Co. Inc.;/
Blytn & Co., inc. and Union Securities Corp. (jointly);;
The First Boston Corp.; Lehman Brothers and Bear,
Stearns & Co. (jointly); White. Weld & Co. and Shields
& Co. (jointly).
Bids — Expected to be received in

bidding.

October

November 1955.

or

Aircraft Corp.

United

26 stockholders

April

approved a new issue of 500,000
preference stock (par $100). Proceeds—To re¬
deem present 5% cumulative preferred siock
(^j,ou0
shares outstanding), and for working capital.
Under¬
shares of

writer—Harriman
United

Gas

Ripley & Co., Inc., New York.

Corp.

Feb.
24, N. C. McGowen,
President, announced that
corporation plans to raise $35,000,000 to $40,000,000
through the sale of additional common stock to stock¬

holders.

Proceeds—For

United

of

and

pany

Underwriter—None.

construction

of com¬
subsidiary.

program

Gas Pipe Line Co., a
Offering—Expected in

September

October.
United

Feb.

Gas

Corp.

C<

N.

24,

McGowen, President, stated that com¬
be doing some debt financing, with thii
year's total financing program reaching about $50,000,might

pany

000

(including

about $35,000,000 to $40,000,000

Underwriter—To be determined

stock).

mon

of

com¬

by com-:
Stuart &

uiuding.
^roDaole Didders: Haisey,
The First Boston Corp.; Morgan Stanley &
White, Weld & Co. and Equitable Securities Corp.

pcuuve

Co.

Inc.;

Harriman

(jointly);

Ripley
(jointly).

Sachs & Co.

&

Co.

Inc.

and

Goldman,

.

,

* Virginia Electric & Power Co. -.(12/6)
Aug. 2 it was announced that company plans
sell

and

determined

derwriter—To .be
bidders:

Probable

cumulative

of

Stone

&

by

stock

Un¬
bidding.

program.

competitive

Webster

issue

to

preferred

Proceeds—For construction

$100).

(par

shares

125,000

Securities

Corp.;;

Merrill, Lynch, Pierce, Fenner & Beane.
Brothers

Warren

;

Co.,

Cambridge,

Mass.

July 19 stockholders approved a plan to refinance the
outstanding 40,665 shares of $2.50 cumulative preferred
stock (par $50). It is proposed to issue not more than

$2,500,000 of notes, bonds or debentures which may be
in whole or in part convertible into common stock at
not less than $50 per share.
Proceeds—To retire pre¬

to pay off

ferred stock,

capital.

'

v

a

$225,000 loan and for working

;

Westcoast Transmission Co.,

;

Ltd..'

•

it was reported company now plans to issue
and sell publicly about $20,000,000 of securities, probably
in units of notes and stock.
Bonds are expected to be
April 25

placed privately. Underwriter—Eastman, Dillon & Co.,
Offering—Expected in July. •

New York.

Westpan Hydrocarbon Co.
was announced Sinclair Oil Corp. has agreed
with the SEC to divest itself of its investment of 384,380
March 2 it

shares

of

Westpan

Securities
Weld

&

stock

(52.8%).

Underwriter—Union

Corp., New York, underwrote recent sale ol

New

Co.,

York,

may

be

included

Whiter
the

among

bidders.
Worcester

County Electric Co. (10/18)
to file a registration statement
with the SEC early in September with respect to sale
of $8,500,000 first mortgage bonds, series D, due 1985.
Proceeds—For payment of bank loans and new con¬

The

proposes

company

Underwriter—To

struction.
titive

Inc.;

be

determined

by

compe¬

bidding. Probable bidders: Haisey, Stuart & Co.
Merrill Lynch, Pierce, Fenner & Beane, Salomon

Bros. & Hutzler and

Stroud & Co., Inc. (jointly); Coffin
Kidder, Peabody & Co., Blyth & Co., Inc.
White, Weld & Co. (jointly); Blair & Co. Incor¬

& Burr.
and

Inc.;

porated and Baxter, Williams & Co. (jointly); The First
Boston Corp. Bids—Tentatively scheduled to be received
on

Oct. 18 at

company's office, 441 Stuart St., Boston 16,

Mass.

Worcester

County Trust Co.,

Worcester,

Mass.

to its shareholders of record
July 26, 1955 the right to purchase an additional 10,000
shares of capital stock (par $25) on the basis of one new
share for each 11 shares held; rights will expire on Aug.
15.
Price—$60 per share. Proceeds—To increase capital
and surplus. Underwriter—None.
York

issuance

Office—Buffalo, N. Y.

first

29

County Gas Co.,
it

was

and

York, Pa.

announced

company

contemplates the
of its

sale later this year of a new series

mortgage

bonds, in

an

aggregate amount not yet

Proceeds—To pay for new construction
probably to refund an issue of $560,000 4%% first
mortgage bonds due 1978. Underwriter—May be deter¬
mined by competitive bidding.
Probable bidders; Hai¬
sey, Stuart & Co. Inc.; A. C. Allyn & Co. Inc.; White,
Weld & Co. and Shields & Co.
(jointly). It is also
determined.

and

Texas Gas Transmission Co.

reported company plans to sell addi¬

finance cost of new

which is estimated at about $17,500,000.
Underwriter—Dillon, Read & Co. Inc., New York.
construction,

Missouri

Underwriter

tion.

June

was

of

Proceeds—To

June 6 the stockholders

it

Co*

30-year first mortgage bonds late in 1955. t
repay bank loans and for new construe-r

$30,000,000

issue of 500.000 shares of first preferred stock

tional first mortgage bonds later to

-

July 26 the Bank offered

reported company plans to offer $600,-

Office—160 Broadway, New

*

reported company expects to sell about

was

Sinclair's holdings of Colorado Interstate Gas Co.

announced company plans to offer first

was

common

bidding.

competitive

from

last sale of bonds

it

24

Co.;

sey,

March 15

of several million
dollars."

equip¬

mined

Puget Sound Power & Light Co.
April 5, Frank McLaughlin, President, said that "it will
outside

new

Underwriter—

10.

Francisco

Louis-San

for

purposes.

May 10 stockholders approved an additional issue ol
up to $25,000,000 of first mortgage bonds, of which it
is planned to sell initially $19,500,000 principal amount
to mature in 40-years.
Proceeds — For property addi¬
tions and improvements.
Underwriter—To be deter¬

tal.

from

company,

corporate

to meet Aug.

stock (par $100).
Underwriters—May be Morgan Stan¬
ley & Co., Drexel & Co. and Glore, Forgan & Co.

purposes

insurance

general

Estabrook & Co., Boston and New

St.

Proceeds—■

stock, and from issue of sinking fund notes

and

writer—Eisele &

to

13.

announced company plans to offer to its
an
issue of about 125,000 addi¬

was

ers^ (jointly), Morgan Stanley & Co. and Drexel & Co.
(jointly); The First Boston Corp. Bids—Expected to be
received up to 11 a.m. (EDT) on Oct. 4.

1955

Corp., New York. Regis¬

stockholders

common

500,000 shares to;

Underwriter—Blyth & Co., Inc., Los An-/

Electric

Union

Paper Co.

000

in

basis

of about

as

surplus.

Jan.

or

Croix

St.

mined by competitive bidding. Probable bidders:
Haisey,
Stuart & Co. Inc.; Kuhn, Loeb & Co. and Lehman Broth¬

necessary

the

on

four shares held

tration—Planned for Sept.

April 18 it

be

Haisey,

expire on Oct. 19. Price—To be de¬
Proceeds—For construction
program.

to

later.

$35,000,000

•

and

terms

bidders:

stock to its stockholders

share for each

Underwriter—The First Boston

bank

Boston

the

and

Probable

Inc.; Morgan Stanley & Co.

common

new

first mortgage

Previous

issue

the

and

company

10.

program.

of

bonds.

the

bonds, the board will

Telephone Corp. (10/4)
advised New York P. S. Commission
that it plans to make an offering of Iy5,8l2 additional

July 25

Nov.

ranged

amount

issue

stock from

common

Union Bank & Trust Co., Los Angeles, Calif.
July 26 it was announced stockholders of record July 22
1955, have been given the right to subscribe on or before
Aug. 15 for 95,000 additional shares of capital stock
(par $10) on the basis of one new share, for each five
shares held. Price—$33 per share. Proceeds—For capital

it in the best in¬

Rochester

18

use

to

company

determine

each

•

the

of

terests

common

bonds and

proposal increasing the

a

authorized indebtedness of the company to $125,000,000.
Funded debt at Dec. 31, 1954 totaled $84,077,350. If, in

Pennsylvania Power & Light Co.
April 19, Charles E. Oakes, President, announced that
company plans this year to issue and sell $15,000,000 of
struction

Under¬

Co., New York.

tyeen filed with California P. U. Commission for ex¬

Electric Co.

Feb. 21

a

150,000 shares for selling stockholders.

pany and

$40,000,000

Pennsylvania

reported

was

creased authorized

geles, Calif.

petitive bidding.

Pennsylvania Electric Co.
Feb. 15 it

exceed

not

Co., Inc.
that a public offering is soon
expected of about 250,000 shares of common stock, of
which 100,000 shares will be sold for account of com-.,
it

28

construction.

Aug. 24.

on

would

Radio Receptor

Feb.

•

plans to issue and sell
$10,000,000 of first mortgage bonds due 1985. Underwriter—To be determined by competitive bidding. Prob¬
able bidders—Haisey, Stuart & Co. Inc.; Union Securi¬
ties Corp. and Kidder, Peabody & Co., (jointly); Leh¬
man Brothers, Bear, Stearns & Co. and Salomon Bros.;
& Hutzler (jointly); Blyth & Co., Inc. and White, Weld
& Co.
(jointly). Bids—Tentatively planned to be re¬
ceived up to noon (EDT) on Sept. 27.
Registration—

July 6 it was reported company

This

writer—Probably Smith, Barney & Co., New York.

holders

Pacific

issue.

debenture

$50,000,000 and would be issued at the discretion of the1
directors any time within the next 12 months.
Under¬

Aug. 1 it

Service Co.

Water

Ohio

of bonds.

Stuart & Co.

July 18 it was reported company now

ding.
Probable bidders:
Harriman Ripley & Co.

1,000,000 shares.

Underwriter—To

competitive bidding. Probable bid¬
ders: Blyth & Co., Inc.; Lehman Brothers; Kuhn, Loeb
& Co.; Harriman Ripley & Co., Inc. and Stone & Web¬
ster Securities Corp. (jointly); The First Boston Corp.;
Union Securities Corp. and Salomon Bros. & Hutzler
determined

be

Smith, Barney & Co. Haisey, Stuart & Co. Inc., is re¬
ported to head a group to bid approximately $25,000,000

April 9 stockholders approved the possible issuance of "

Corp.

announced that it is planned, following

it was

June 28,

Unexcelled Chemical Corp.
May 25 stockholders approved creation of 100,000 shares/
of 5%
non-voting preferred stock (par $25/ and in-:

m

Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Equit¬
able Securities Corp. and Union Securities Corp. (joint- ;
ly)

large-scale expansion program, involving $75,000,000
oioer to keep abreast of
estimated load growth over
the next five years.
Underwriters—Probably Stone &
Webster Securities Corp.. The First Boston Corp
and

a

Continued from page 37

possible that issue

may

be placed privately.

Number 5454.., The Commercial and Financial Chronicle

Volume 182

Welch Industries Stk.

Foremost Dairies

shares

Offered at $2 a Share

underwriting group headed

An

by Allen & Co. and Salomon Bros.
Hutzler, today (Aug. 11, 1955)

&

is making

preferential offering

a

$15,COO,000 4%%

of

subordinated

debentures, due Jan. 1, 1980 of
Dairies, Inc., at 105%,

Foremost

accrued interest, to holders
company's $4.50 preferred

plus
of

the

and

stock

series

two

4^2%

of

cumulative

have

preferred stock which
for redemption
15, 1955.

Sept.

on

called

been

Simultaneously, Foremost Dair¬
ies, Ir.c. is offering an additional
$5,000,000
principal
amount
of
these new debentures in exchange
for 50,000 outstanding shares of

Philadelphia

Dairy Products Co.,
Inc., first preferred stock at the
rate of $500 principal amount of

Warren

&

Co., Houston,
Tex., is offering publicly an issue
of 150,000 shares of common stock
(par 50 cents of Welch Industries,
Inc., at $2 per share.
Welch
Industries
is
a
newly
formed,
but
actively operating
corporation, engaged in the busi¬
ness
of recovery of tin cans and
other metallic scrap for industrial
reuse.

Dairies,

Subsidiary,
demption

the

Metals

to, Gulf

successor

in

Co.,

Welch Industries acquired Gulf
Metals in
exchange for 220,000

31,

will

be

Net

of

Berlin,

debentures

Any

the exchange

sale

of

debentures and
the unexchanged portion of the
$5,000,000
debentures from
the
Philadelphia Dairy offer will be
Foremost's

redeem

to

43/2 %

cumulative

$4.50

preferred

stock, and the balance of the un¬
exchanged
Philadelphia
.Dairy
first prefered stock.
The

debentures

will

be

com¬

pletely

retired at maturity
through the operation of a sink¬
ing fund, and are callable at 105%
for sinking fund purposes, the first
payment of approximately $685,000 to be made May 15, 1961.
De¬
bentures may be called for other
than
sinking fund purposes at
prices
graduating
down
from
1091/2%

in

1956

105%

to

at

ma¬

struction of

acquisition of a unique new, port¬
machine.

able baling
All

stock

shall

stock—

incorporators'

at the National Bank of Commerce

balance

The
are

of

170,000 shares
dependent upon the company's

and

cream,

ice

of

line

diversified

a

other

dairy products, including
cheese, butter, eggs, fresh canned
milk,
fresh
tasting
evaporated
milk, powdered milk, recombined
milk, and certain oils and chem¬
ical products useful in the dairy
The third larg¬

and other fields.

est

Board

declared

payable

NOTICE

of

month.

Further, should the corporation
be liquidated,
the incorporators
have

that

agreed

the

ticipate

in

the

liquidating

divi¬

dend.

already obtained

major

one

contract from

a

copper

close

a

for

company

the Common Stock,
September 1, 1955 to
of

record

business

at

the

August

19,

1955.
At

the

meeting

same

Board also declared

the

of

sales

June

the

for

30,

1955

amounted to

$184,061,615, and are
running at an annual

currently
rate

of

000.

Net income for the first half

of 1955

approximately
was

Other

writing

members

of

the

include:

December

the

A regular quarterly dividend

been

&

Scribner;

Co.;

&

Co.;

Singer,

declared

1,

1955

who

wish

Checks will be mailed by the Old Colony
Trust Company of Boston, Dividend Disburs¬
ing Agents.
Paul E. Crocker, Secretary

September 13,

at

the

close

stock

transferred

NOTICE

their

own

the record date.

by

names

to

HOLDERS

TO

of

has

Directors

of

on

STOCK

CERTIFICATES

TRUST

—

now

affili¬
Com¬

DIVIDEND NOTICES

fifty

cents

declared
per

a

quar¬

share payable

to stockholders of record

1955

business

August

on

H.

22,

Agreement
for stock of Brown Company
expired October 1,1951. Holders
of Voting Trust Certificates are
entitled to receive regular stock
certificates
in
exchange
for
Voting Trust Certificates.
The September
1 Common
dividend

Stock

in

respect

Stock Voting Trust

referred

to

be

1955.

ALIIS-CHALMERS
MFG. CO.

\\ \
The

LION OIL
quarterly

regular

of

of

Holders
Common

DIVIDEND

Voting

A regular quarterly dividend of one dollar
($1.00) per share on the issued and outstand¬
ing common stock, $20.00 par value, of this
Company has been declared, payable Sep¬
tember 30, 1955 to shareholders of record at
the close of business September 2, 1955.




of

1955.

to

1955,

1,

record

of

as

share¬

August

15,

,

Louis

E.

Wolfson,
President

31/4% PREFERRED DIVIDEND NO. 36

STANDARD

regular quarterly dividend of eighty-one
(81}4c) per share on
Convertible Preferred
Stock, $100 par value, of this Company has
been declared, payable September 5, 1955 to

DIVIDEND NO.

4.08% PREFERRED

close

the

at

of business

DAYTON. OHIO

per

1955,

the

Common

Transfer books will not be closed.

Company, payable

Checks will be mailed.

1955 to stockholders of record

on

close of business

on

on

GEORGE

ness

at

September 1,

30 Rockefeller

dividend

is

September 10,

on

stockholders
the close

of

of busi¬

August 15, 1955.

on

Stock of the

share

of

share on August

to

record

regular quarterly dividend of 50c per

a

This

1955.

4,

payable

The Board of Directors has declared a

August 19, 1955.

W. E. HAWKINSON,
Vice President and Secretary

JERSEY)

the capital stock

on

$1,25

132nd Common Dividend

Cumulative

record

Cash Dividend

AND LIGHT COMPANY

A

of

NEW

has declared

THE DAYTON POWER

two

holders

IN

The Board of Directors

5

regular quarterly dividend of one dollar and
cents ($1.02) per share on the 4.08%
Convertible
Preferred
Stock,
$100 par value, of this Company has been
declared, payable September 5, 1955 to share¬

COMPANY

OIL

(INCORPORATED

August 19, 1955.

Plaza, New York 20, N. Y.

at the

August 16, 1955.

SELLERS, Secretary

August 3, 1955

August 5, 1955

Trust

now

of

cents

per

604

share on the

Common

Mass.

Stock,

of
the

Broadway
.

Guardian Trust Company

quarterly
Preferred

lows,
1955,
record

dividend
Stock

as

on

Delta Air Lines, Inc.

1,

declared

of

CLASS

PER SHARE

Canada

Toronto 1,

Ontario, Canada

a

$1.07V2

the

$4.50

$1.12'/z
$1.15

company,

$4.J6

$1.04

tember 5
of record

business

at

on

dividends

S.

W.Bkowbo

Vice President and Treasurer

Senvlnf Outtfatc

ers

are

Preferred

of record

business

at

payable

the close of

September 14, 1955.

stockholders

DRUMMOND WILDE, Sec.

the close of

August 2, 1955

August 17.

General Offices: Atlanta, Ga.

%

the 4%

October 1,1955 to Stockhold¬

Delta Air Lines, Inc*
.

on

Preferred Stock

JACKSON, MICHIGAN

BROWN; COMPANY

on

Stock and 4.30% Convertible

on

payable Sep¬

to

share

Common Stock dividends and

capital stock of the

$4.52

CONSUMERS POWER COMPANY

share

per

ible Preferred Stock.

has

quarterly divi¬

dend of 30c per

St. James Street, West

Montreal 3, P. Q.,

the

the 4.30% Convert¬

The Board of Directors of

fol¬

payable
October
to share
owners
September
2:

on

4% Preferred Stock.

CASH DIVIDEND No. 32

ON

STOCK

of Directors also
authorized the payment

a

share

per

$1.00 per share on the

The Board

Chemical Corn Exchange Bank

on

$5.00 par value Com¬
mon Stock.

of

dividend

Stores, Incorporated,

following quarterly dividends:

of

Directors

of

quarterly

a

has

618

way

August 2, 1955, declared the

Power Company
authorized the payment

has

PREFERRED

15, New York

as

Consumers

DIVIDEND

Streets

New York

operating

,

COMMON STOCK
Board

The

170

The Board of Directors of Safe¬

payable August 20, 1955, to
share
owners
of
record
July 22.

Corner State and Congress

165

NO.

DIVIDEND
ON

Common and.

Preferred Stock Dividends

Delta Air Lines, Inc

outstanding

Company

Boston 1,

%

(t

a

Second Bank-State Street

G.

Inc.,

September

holders

£sso

and one-quarter cents
the 324% Cumulative

55

&

staff of Slayton & Company,

share, on the Com¬

cents per

Stock of the Corporation, pay¬

.V.vX'X

Trust

request for actual
in time so
that they are received before
August 20, 1955 by one of the
following Transfer Agents:

Schwa-

408 Olive Street

dividend

ATKINSON, Treasurer

125

NO.

unexchanged

Stock

certificates,

the

de¬

1955,

regular quarterly

a

August 3, 1955.
COMMON

Boston 1 Mass., for pay¬
ment only when Voting Trust
Certificates are so exchanged.

with

to

able

3,

Street Trust Com¬

Bank-State

(Special to The Financial Chronicle)

added

50

mon

Capital Stock of this Company, pay¬
able September 15, 1955, to stockholders
oflrecord August 25, 1955^. The stock
transfer books will remain open.
E. W.

Corporation at a

August

held

meeting

COMPANY

of Merritt-

Board of Directors

Chapman & Scott

pany,

stock

Gustave A.

^

WHERE THIS FLAG FLIES

deposited with Second

same,

Deane

¥

1955.

ALEXANDER

dividend of 50dper share
has been declared on the

of Common
Certificates

exchanged for stock certifi¬
cates
before August 20,
1955
not

flF* CORPORATION ^

YOUR CONFIDENCE IS JUSTIFIED

shareholders of record at the close of business

The Voting Trust

Slayton Adds To Staff

been

is

California

300 Montgomery Street.

pany,

clared

OF

VOTING

Royal Trust Company
66 King Street, West

has

First

Secretary

5,

A

to

The

Jensen

Constantine

with

August 8, 1955.

to

Co.

=—

ated

of Seventy-

share

per

directly
from
the
Disbursing
Agent
should
arrange
to have the

Co.; Wood, Struthers

LOUIS, Mo.

I

,

Calif.

FRANCISCO,

James

payable August 15, 1955, to

18, 1955.

Stockholders

under¬

Stroud- & Co., Inc.;

H. Walker &

First Calif. Adds
(Special to The Financial Chronicle)

SAN

stockholders of record at the close of business

receive their dividends

Auchin-

Goldman, Sachs & Co.; Goodbody
&
Co.;' Hornblower & Weeks;
Hulme, Applegate & Humphrey,
Inc.; E. F. Hutton & Co.; A. M.
Kidder & Co.; Ladenburg, Thalmann
& Co.; Lehman Brothers;
Rothschild

Paramount

Building.

NOTICE

Common Stockholders of record

ber

Board of

dividend

Certificates should forward the

.closs, Parker & Redpath; Bache &
Co.; Baker, Weeks & Co.; Caro¬
lina Securities Corp.; Dean Witter
& Co.; Robert Garrett & Sons;

bacher

staff of Robert Lipton,

five Cents (750) and a year-end extra dividend
of Seventy-five Cents (75^) per share have

at the close of business Novem¬

$400,000,-

$4,533,919.

group

A !

DENVER, Colo. — William T.
Hastings* has been added to the

Company
The

terly

Boston, July 29,1955

dividend

a

amount

same

payable

will

net

Adds

(Special to The Financial Chronicle)

The Singer Manufacturing

D.

DIVIDEND

July 15, 1955

on

of

Okinawa, Japan and Hong Kopg.
ended

Robert Lipton

escrowed

shares will not be entitled to par¬

PEPPERELL

PABRJCS

Directors at

on

Stockholders

above

months

mill,

will it

DIVIDEND NOTICES

MANUFACTURING

Hampshire

dividend of 25 cents

a

share

per

dairy company in the United
States, it serves a market area
embracing 30 states, plus import¬
ant operations in Hawaii, Guam,
Consolidated

500

be

the company.

August

The

COMMON

distribution of fluid milk and

ST.

the

COMPANY

Dairies, Inc., and its
operating subsidiaries are engaged
primarily in the processing and

&

plant in El Paso, Texas, con¬
a detinning plant and

new

IPEPPEtRE-LLI

Foremost

F.

of

A

turity.

six

cur¬

.L

DIVIDEND

preferred stock and the two series
of

n£w

meeting held
the

the $15,000,000 of

used

the

Welch Industries

sale of the

securities will be used to pay for a

offer

group.

proceeds from

tons a month, or 6,000 tons
annually.
The proposed
detinning plant
the incorporators for will be located at or near a steel

share

Mr. Welch said.
Not only
salvage the steel from tin
cans, but the tin plate as well,
to
be released on Sept.
1, 1957, through a chemical process. Proe-i
will be contributed by the incor¬
essing capacity of this plant would
porators back to the treasury of be approximately 2,000 tons a

DIVIDEND NOTICES

|^ompany

purchased by the under¬

writing

L.

The net proceeds from
rent

BROWN

Oct. 1, 1955.

1955.

$170,000 after taxes by
1957, under the formula

1,
one

in
Gulf. These shares, released to
by the incorporators, are in each dollar of net earnings after
addition
to
the
150,000
shares taxes up a minimum of 170,000
shares. Those shares not entitled
being offered to the public.

held

DIVIDEND NOTICE

remaining unexchanged after the
expiration

that

a

the exchange offer will expire on

Aug.

their

than

more

has been called for re¬

on

Sept.

with

accordance

partnership, which of Houston. 50,000 of the shares,
Capacity of the El Paso plant
a year prior to
its issued in exchange for equipment will be 25,000 tons a year, while
acquisition by Welch, was devoted and services appraised at in excess there is a market in this area for
to the development of the nucleus of
$100,000 are escrowed ulntil almost 36,000 tons a year, be
of
a
business
able
to
reclaim, Sept. 1, 1957, unless the Secretary added. Furthermore, Louie Welch,
process and resell ferrous metals. of State orders an earlier release.
President, said, the company has

for

the preferential offer and

Both

earning

Gulf

Dairies

Foremost

a

which

among

interests

preferred stock of Philadel¬

phia

common

220,000 shares—is being escrowed
is

It

debentures for five shares of stock.

The

Clark

Welch

of

apportioned

was

owners

Debentures Offered

39

(599)

^

i

:

/

The Commercial and Financial Chronicle...

Thursday, August 11, 1955

(800)

40

BUSINESS BUZZ

Washington
Behind-the-Scene Interpretations
from the Nation's

Capital

ogy of caution.
These are re¬
specting consumer and mortgage

WASHINGTON, D. C. — It is
the moderate apprehension

now

is

boom

ness

proceeding

objective is to
pace with the
idea of preventing a more uncomfortable readjustment later.

-

its forward

credit

was

troller of the Currency,

Federal

Corp.,

to

tightened up. But it
they will pursue

weeks

ago,

as-vigorously-as two years
ago, or that circumstances sug¬
gest such vigor of restraint.

on

this

the

approached $1 billion in

counts

volume.

step

lending

have pushed pretty

expected

If

de¬

its

especially

credit,

In the

credit without any

ther

process

considerable
actions

how long are

of

tightening

overt or fur¬
the monetary

by

authorities.
Or, if nonetheless
borrowings at the Reserve banks

values.

continue

of

to

surprise

observers

Heserve

banks

move

up

is

restrained by
the mild means, is the forward
pace of the boom. As yet there
is said to be
moting
are

the

thought of pro-

third

ers

{

that

idea

nance

more

a

should

there

bank

reasonable

a

the

ing
that

through

operations
-effective

cially

the

rise,

of ;
„

are

terms.
However, the fact
this thing has been asked

supervisory agencies and
latter are going along,

Re¬

the evils of too

loose instal¬

So, it has helped to

is

it

psychology,

the

head

weekly

to

issues.

also behind the move

was

little
mortgage credit.

tighten

estate

Admin¬

WOC's

up_a

on

real

charges.

of

maximum
ernment

-

25

it should be

to

terms

restricted

years

sponsored

on

In

Psychological Moves
other

two

Eisenhower
taken

respects,

centage points of down payment

the

will be required on

Administration has

VA's

primarily to promote a psychol¬

About

loans.

FHA

steps which are designed

the

are

all VA and
40%

of the

no-down-payment

Canadian Bonds
—

phenomenon of the
political climate. That has

dent

Eisenhower,

most

of

stolen

had

State"

Welfare

ing desperately to draw a dis¬

done

proportion

greatest

business

FHA

and

VA

the

via the speculative

Mr.

that

was

sought to be
Eisenhow¬

Mr.

Republican, and there¬

was a

er

by was committed to business,
letting business men get away
with anything. The WOC issue
fitted neatly into the pattern.

of
is

build¬

When

months

comes

builder has got his

the

individual

the

distinction

drawn

he

is not subjected later in
closing the loan to the tougher

any

to take

big business man
a policy job with

in

government
will

peace

learn

should

or

time,

that he "'

is perforce

in politics, and that
honor, and duty to the
country are purely subsidiary.

requirements. Only the individ¬
buying a used house or the
individual
having
his
house
custom built will be hit imme¬

another

Come
the

government

begging

diately.

sponsored

-

to

in

of

around
about

It will not actually dampen

will

again

go

men

to

wartime
the

is helpless*

multifarious

management

without

economy

however,

the show, for the gov¬

undertake

ways

materially to brake the volume
of credit during the remainder
of the 1955 home-building sea¬

Farm, Genoa City, Wise.

Bear

who

this,

of

the

somebody

knows

Denver

ing at Park Hill County Club

any

National Security

the

Dealers

Fall meeting of

in

Sept. 16, 1955 (Philadelphia, Pa.
Bond Club of Philadelphia 30t
Field Day, at Hunting

Annual

Valley Country Club, A

don

ington, Pa.
Sept 21-23, 1955 (Denver, Colo.
Association of Stock Exchang
Firms

meeting of Board of Gov

ernors.

Sept. 22,1955 (Omaha, Neb.)
Nebraska
Investment
Banker
annual

by

a

MemberstThe Investment Dealers'

Association

Toronto

of Canada

be precede
cocktail party Sept. 21.

Nov. 16-18 (New York, N. Y.)
Association
Firms

•




Montreal

tedly

primarily

rather

than

is

thus

admit¬

psychological

material

—

to

re¬

flect the "behind the scene" inter¬

pretation from the nation's Capital
and may or may not coincide with

get

the "Chronicle's

own

views.)

New Views

on

Carl Marks

Company, Ltd.

Members:

SECURITIES

50 BROAD STREET

TEL:

HANOVER 2 0050

Stock Exchange

•

(Common)
011

Investment

10

Toronto

B

STOCK

request

LERNER & CO.

FOREIGN

Ottawa

Exchang

Stock

ernors.

Cophs

TWX: NY 1-1467

,

of

meeting of Board of Gov

CALIFORNIA

Burns Bros. &
1

Club—to

RIVERSIDE CEMENT CO.

Canadian Securities

The

day at the Omah

field

Country

technical facet of that economy.

(This column is intended to

move

Affiliated with:

Burns Bros. & Denton, Ltd.

Board of Gov

ernors.

Canadian Exchange

37 Wall Street, N. Y. 5

(Chicago, HI.)

Investment Bankers Associa

other

Burns Bros. & Denton, inc.
DIgby 4-3870

Traders

ciation annual convention.

r

Tel.:

(Mackinao

Sept. 11-14, 1955
land, Mich.)

CLASS
on

Club annual out

Bond

something

that, and

External and Internal
Stock Orders Executed

(Denver, Colo.)

18-19, 1955

Aug.

credit material¬

until 1956.
this

run

war,

business

for

ernment

mortgage

actually will not operate

credit

summer

Women

love,

ual

ernment

(Chicago, 111.)
of Chicago
luncheon
at
Honey

Investment

Sept. 19-17

Eisenhower.

The

who gets his commitments
in advance. Where the

er,

So

Municipal — Corporation

their

the

that Presi¬

finding

Democrats,

gov¬

housing

which

in

climate

a

tinction between themselves and

The

Field

13, 1955

Aug.

a

the orders were so

son.

Provincial

Compensation"

been

a

phrased

ly

—

out

the "With¬
officials is

on

that all business in
process
before VA and FHA
July 30 is exempt from the 25year maximum term and the re¬
quirement of two more percent¬
age points of down payment.

However,

Investment

In

Down

political merchandise, were try¬

down mortgage

Government

adjournment

come

As announced, two more per¬

instal¬

on

Die

Will

near

1955

Hence the new orders on gov¬

Make

Issue

strictly

The later orders,

also

as

That noise the Congress made

loan,
which is bureaucrateese for a
loan
without
even
closing

buyer

asked
by George Humphrey, the Sec¬
retary of the Treasury, as well
as by Mr. Burns.
The Treasury

down,

ment loans.

no-down-payment"

added,

EVENTS

ing homes should pay some real

istration, eliminated the "nega¬
tive

the idea that people buy¬

money

the prod¬

VA, at

commitments

This particular move was

better

loan.

back

months

across

wipes

no-down-pay¬
A couple of

30-year,

VA

ment

speculative

Humphrey Sparks Idea

that the Treasury
adding $100 million

for several weeks to its

publicity

hoped, of more caution.

espe¬

in

move

the

direct effect in regulat¬

promote

a more

control,

at

that the

on

now

been

going

has helped to get some

market

exercise

bills

since

supply
lias

may

particular

ment terms.

open

interim

no

of the

the

out

thus

loans.

have

supplementing

discount rate

serve

fictitious

be t;

"the readjustment.
Furthermore,

into the

with

fi¬

this

admittedly

and threatens

too fast,

jumping

deal

is
thing
by,the circuitous route and will

growth. It is the growth or expansion which appears to be go¬
ing far

be

may

So

;

allowance

amount

on

write-ups of value.

normal

less

or

seasonal rise plus an
afor

to

reserves

months

18

However, other lend¬

cars.

36-months

;

new cars, or one-

and

down

used

believed to be committed to I,

sufficient

on

and

months

24

beyond

-

The Re¬

Administration

the

and

serve'

no

deflation.

any

the opinion

bank

the

25% down

being

COMING
ruling

This

kind.

ding of the Eisenhower

going

to the Cleveland rate.

What

phony

on

supervisory au¬
thorities that banks are seldom

would not
if the other

should

lending

of

It is believed to be

it

rise,

36, N. Y. (paper).

bank handles its

a

the examiners will learn
the maturities and
to what extent—if any at all—
banks
are
conniving
in the

a

,

be

process

amount, the 2% rate (2V4% at
Cleveland) can of itself lead to

1

how

instalment loans on cars.

seasonal

the

above

ture of

consumer

bank credit continues

rise

to

with

about

Agreement on Tar¬
iffs and Trade and the Organi¬
zation for Trade Cooperation^
American
Tariff League, Inc.,
19 West 44th Street, New York

the General

detailed questions
whose answer will elicit a pic¬
armed

Gatt—Facts

Behind

Story

examination

Examiners henceforth will

the

as

rise.

seasonal

for

mand

memorative pamphlet

of banks.

is said to
well beyond

evaluated

officials

what

City—Com¬
— Anglo
California National
Bank of
San Francisco, Calif, (paper).

San Francisco—World

time. Business

some

other

and

maintain

well

can

Inc., 330 West 42nd Street, New
N. Y. (cloth) $6.50.

this

regular part of the
This

control for

Edition—John C. Clendenin

—McGraw-Hill Book Company,
York 36,

done, dis¬

was

2nd

loosening

meeting was
the announced program
of all
three bank supervisory agencies
to check into bank practices on
consumer
credit, especially on
automobile loans, to be carried
out henceforth
as
a new and

:.t raising of the rediscount rate.
before

to express his con¬

of

Upshot

The clearest-cut indication of

this thinking, of course, was

Publication

State

Introduction to Investments—New

of credit terms, particularly
automobile loans.

up

it

of

(paper), 15c.

several

conference

a

about the liberal

cern

is doubted that

Just

the Comp¬
and the
Deposit
Insurance

eral Reserve Board,

1953, when

Trade — The
GATT—Department
5879 —
Superintendent of Documents,
U. S. Government Printing Of¬
fice,
Washington
25,
D.
C.
World

in

Goal of the

1

representatives of the Fed¬

ed

words, the monetary
authorities
are
pursuing
the
philosophy of

Brooklyn, N. Y. (cloth).
Partners

of Economic Advisers, summon¬

In other

same

Walker—Austin, Nichols & Co.,

related to
banks. Arthur Burns, the Chair¬
man of the President's Council

Their

rapidly.

.slow

tory of the

First of these steps

too

1855-1955 — His¬
Company—Frederick

Austin, Nichols

debt.

real estate

Federal monetary authat the present busi¬

the

of

thorities

W

JL %J IM/

jlM. II/IA/

f

Winnipeg

_L
r

&

Q> Inc.

SPECIALISTS

NEW YORK 4, N. Y.

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Securities

Office Square

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