Full text of Commercial and Financial Chronicle : August 15, 1957, Vol. 186, No. 5664

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RAILROAD INDUSTRY FEATURED IN THIS ISSUE
UG

1G13S

Commercial
Reg. U. 8. Pat. Office

Number 5664

Volume 186

New York 7. N. Y.,

EDITORIAL

vvj

Several

the

Federal

Reserve

banks

Railroad
1

granted that the others will soon follow suit.
Obviously,v: these increases: leave' the rates at a
level well below those member banks ordinarily
charge their customers,, although the -margin of.,
profit theoretically available to member banks
through borrowing at ;the Reserve - banks and
lending to their customers- is reduced. The fact
is, in any event, there has been no particular dis¬
position on the part of member banks to take
advantage-of the spread between rates. The most
recent action on the part of the Reserve authori¬
ties is therefore at most of psychological signifi¬
cance. The
general conclusion, and quite probably
correct

one,

that the

rates at this time may

so-called

hard

the

policy

money

for

least

income;

There

can

irks

seem

this country, has not been permitted

signs,

page

ing

just one short sentence; the
confronting railroad man¬
agement is the impossible one of
balancing each $1.00 'of 1956-1957
—operating costs with onlv 73C in
revenues based on comparative fig¬
ures

for the year 1946.

Last

mate

Continued

of the

level

page

which

it stood at the

of 1956.

October and November are

since

reason

This rise is ex¬
pected to continue during the re¬
mainder of
the
year,
particularly

G. Campbell

at the Summer

taken
Group

the

beginning

The

■

;

traditionally the best

changes in inventory policies,

industrial production, and
Continued

27
Outing of the Bond
on page 33.

IBA appear

page

State, Municipal
and

jU. S. €o\ ernmeiily5;

State ami

Clarke

DEALERS
.

Owen

traffic volume standpoint.
fluctuations which occurred this year reflected

months from

easily stated; freight rates are unrealistic and bear no
relationship to costs. Further, and in many cases, they

pictures

which has obtained over
was

years

during

for fuel, materials and supplies, to¬
gether with wages and salaries paid
were $1.90 per $1.00 of similar costs
Thomas
in
1946.
In comparison,
operating
revenues in 1956 were equal to only
$1.41 per $1.00 of 1946 revenues.
The basic

THIS ISSUE—Candid

interrupted slightly
first quarter of 1957.
During the second quarter the trend
resumed and reached the approxi¬
the

*• '

have

they

forward

rail traffic

the out-of-pocket costs

year,

look

Club of Denver and the Rocky Mountain

the

every
reason to
significant future
gains, including perhaps a reversal
of the percentage trend.
The generally upward volume of

general prosperity.

The specific reason can be summed
up

PICTURES IN

that

ever,

problem

time for many,

told

the rails have been transport¬
increasing volume of traffic,
under
a
number
of
encouraging

•

be questioned, however, whether

Commission

are

to share in the

good

erally, are responsible for adverse business de¬
velopments are hardly new. Complaints of the

Continued

Commerce

regularity

railroads, for the last decade, have been carry¬
ing' a declining share of the nation's traffic. Standing
alone, this fact seems ominous so far as the industry's
future is concerned. Actually, how¬

industry, the railroad industry of

one

fully occupied. Charges that the Fed-'
in fact that central bankers gen ¬

decades. It may

CLARKE

American

if not the

prosperous,

would

•

eral Reserve, or

sort have been heard from time to

OWEN

can

then certainly the second most pros¬
to date in the history of the United States.
an
appropriate time therefore to call
public attention to the fact
that

activity in some segments of business is not what
many would have it, and to certain observers it
seems
strange that the Reserve authorities stead¬
fastly refuse to provide "a needed stimulus" or
incentive to those branches which are something
less than

industry

perous year

question that the rate of

Chairman, Interstate

that American

This year 1957, may eventually be recorded
most

in the political world, and, for that matter,
some
sections of the business community as

well.

increase in

and of $600 million in net

gross

bill

for the industry as a whole and specific carriers.
These articles, especially written for the "Chron¬
icle," begin herewith:

With' monotonous

many
in

entailing

1.65 cents, producing

ton-mile rate to

economic outlook

Commerce Commission, on the

well afford.

the

■

casualty of inflation. Advocates

average

whole.

privileged to present today
the opinions of the chief officers of a representa¬
tive cross-section of the nation's railroads and
suppliers, also of the Chairman of the Interstate

behind the past

$2 billion increase in

continue their

this latter conclusion which

riers the

as a

The "Chronicle" is

decade's growth in the national
Maintains freight rates are unrealistic and often
arbitrarily established; and bear no relationship to costs.
Shows sharp decline in steel industry's percentage of
price devoted to transportation cost; making the car¬

revenues

individual roads and industry

prospects for

Campbell, citing the railroad industry's exclusion
our
general prosperity, points out the lag in its

economy.

be taken to indicate that

present.
It

from

of the nation's leading carriers

suppliers, also ICC Chairman, in articles especially
written for "Chronicle," outline their opinions , as to

and

Co.,

in discount

increase

the Reserve authorities intend to

Mr.

Simonson &

Cohen,

Members New York Stock Exchange

for

Analyst,

Copy

Industry's Outlook

Chief executives of many

By THOMAS G. CAMPBELL

raised their discount ratMlU is generally taken

The

—Too little and Too Late

have

Railroad! Leaders View is

Same Old Railroad

See ItM-:

40 Cents

Price

Thursday, August 15, 1957

,.) f

UNDERWRITERS

Municipal

■;

V ./V

STATE

AND

Public Housing Agency

COPIES OF OUR

and

Bonds and Notes

MUNICIPAL

Securities

DISTRIBUTORS

BONDS

of
telephone;

IIAiiover 2-3700

■,

"market review"

INVESTM E NT

SECURITIES

CHEMICAL

ARE

CORN EXCHANGE

department

Burnham and
MEMBERS NEV/

30 BROAD

ST.,N.Y.

15 BROAD
CASLE:

YORK AND

STREET, NEW YORK 5,

N.Y.

Members

120

EXCHANGES

•

Dl 4-1400

Bond Dept.

Teletype: NY 1-708

T. L. Watson
ESTABLISHED

&Co.

Active

Dealers,

Banks

and

Stock Exchange

Orders

Executed

Canadian Exchanges At

CANADIAN

OtSSCT

STREET

NEW YORK 4, N.

WIRES TO

OAtlAS

ERIDGEPOBT '

•

from

coast

f^ERTH AMBOY

115 BROADWAY
-

NEW YORK

BANK

coast

BONDS & STOCKS

for California'*

Expanding
Economy

All

DEPARTMENT

MUNICIPAL BOND

MONTREAL AND TORONTO

Pomeoox Securities

1 NORTH LA SALLE

CHICAGO

DEPARTMENT

©RPORATIOT!

Co.

MEMBERS NEW YORK STOCK EXCHANGE

COMPAN Y

offices

Regular Rates

Goodbody &

Chase Manhattan

Municipal Bonds

Teletype NY 1-2270

^outhwt4t

Exchange

CANADIAN

Stock Exchange

25 BROAD

Stork

Brokers

SECURITIES

American

York

BROADWAY, NEW YORK 5

1832

Commission

New York

New

Maintained

Markets

Members

FInm

TELETYPE NY 1-2JS2

coburnham

INSURANCE STOCKS

Harris, Upham

OF new YORK

Company

AMERICAN STOCK

Net

BANK AND

DEPARTMENT

BOND

REQUEST
THE

THE FIRST NATIONAL CITY BANK

BANK
bond

NOW AVAILABLE
ON

i&ztttk of Antrim
NATIONAL

ExchangePlace,NewYork 5,N.Y.

ST.
Teletype NY 1-702-3

WHitehall 4-8161

300

JSVings ASSOCIATION

Montgomery St., San Francisco. Calif

and Financial Chronicle

The Commercial

Thursday, August 15,
ig57

(678)

Banks, Brokers, Dealers

For

The

only

Security I Like Best

A continuous forum in

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

Specialists for over

(The articles contained in this fornm
•re

Bank Stocks

they to be regarded,

Quarterly

Comparison of Leading Banks

Servo

request

in
in

New Yoik Hanseatic

Established 1920

120 Broadway,

New York 5
Teletype NY 1-40

WOrth 4-2300

elec¬

•

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

Wires to Principal Cities

it in

and

achieved

counter

of its

infrared

the

its work in these areas, Servo
with

has

products

develop

Of
Servo-

outstanding potential.

major

Since 1917

importance,

the

safe Hot Box Detective which is a

fftPONNELL&fO.

patented automatic electronic sys¬
tem functioning on the infrared
radiation

principle installed at the

side

railroad track.

Members
New York Stock
American

Stock

Exchange
Exchange

TEL. REctor 2-7815

overheated

Products, Inc.

detects
v.-.-.—

instantaneously and auto......

matically

Company

Colony Life Insurance Co.

Scott, Horner & Co.

gerous

radiation

Alabama-Tennessee Natural

of infrared
potentially dan-

means

waves

journal boxes without inwith

terference

normal

other

operations. The system also indicates the position of the cars in
which an overheated journal box
is brewing and the exact location
of these defective journals on the

itself.

car

In 1953 the

Lynchburg, Va.
LD 33

Tele. LY 62

wrecks that put
cars a month out of

commission. The hot box detective

Bank of Virginia

First

which
derailments,

boxes

and

ups

10,000

over

Trading Markets

journal

the majority of

crack

Gas

The hot

first reliable system for detecting
cause

Air Control

box detective is believed to be the

BROADWAY, NEW YORK S

120

Trading Markets
Alaska Oil & Mineral

Chesapeake & Ohio
Raalway signal department started
investigating the use of infrared
pyrometers to detect hot boxes on
moving freight trains. The C & O
started correspondence with several manufacturers of electrical

electronic devices, including Servo
Doman

Helicopter

Corporation of America.

Louisiana-Delta Offshore Oil

1956

using

Orders Executed

detector

ing

1930

Salt Lake Stock

Exchange

Magnolia Park

trains;

(3)

prove

After the installation of the de-

"pip" that indicates a hot box,
flashing-lunar dig iai
stop the train. During the first

he sets up the
to

months

shf

tected

American Tidelands

Oil

International Oil & Metals

CAPPER
'Members

Salt

Lake

V CO.
Stock

Exchange)

Exchange PL, Jersey City, N. J,
N, Y.

Teletype JCY 119
Telephone Dlgby 9-3424

Oirect private wire to Salt
Lake City

dustrial

gineering
jiave

the

contact

are

direct

possible.
These
Pyrometer
Systems

serving
°

now
rt

such

first16 toTvJiop "'the"6

Obviously, to

en¬

yet and

r^rain^
refrained

of this
nature which spends several hun¬
dreds of thousands of dollars each
a company

this

hot

detector

boxes

wa*

were

de-

and none
of these had been

observed by the train crew or the

operator at Norge The C & O ineventually to replace the
graphic recorder with an alarm-

electronic

and

expenses

important.

For

Yamaichi
Securities Company
of

ary,

by the end of the

Tokyo, Japan
•

Investment

111 Broadway,

Bankers

N. Y. 6 COrtlandt 7-5680

WRITE FOR
'Some Interesting Comparisons

could

year

systems and
nevv
missiles and aircraft design.
This concept was translated into

Stocks in the

Common

Chemical

Industry"

REFERENCE

SPECIAL

reality thiough development of
the Sei^omation Building Blocks.
There blocks fitted to customers
imfividual needs, permit custom

IS MADE TO

chargeS this year as a non-recurrjng expense) then earnings in
19gg
could
conceivably reach
about $] a share in my opinion. I

also feel that earnings

years

CHEMICAL

Back,

the

several

anc; Quantity production runs with. j0g

present

per

amounts

INDUSTRIES

about

—

DETREX

share
might

expand quite substantially.

cost-saving efficiency.

Servoma- $3.3 million.
tion is believed to be the onlyj
Dividends are currently at the
electromechanical control equip- rate 0f $q.20 annually. In view of
ment:that performs as an auto- the company's heavy emphasis on
Production control system,
data processing center, design and
mst laboratory and as a computer
tor solution of complex mathematical equations. These electronic automation systems include
such products as Servoscope used
-11} designing and testing many
£incls of equipment such as airLorhe weapons, computers, radar
p7^®111™?1?^ automatic flight con-

research, which requires substantial outlays of capital, it is doubtful that cash payments would be

ihcreased in the near term,
In conclusion, it is my opinion
that Servo Corporation of America
appears to have outstanding speculative merit for future apnrecia-

tion based not only

011

M0RELAND & CO.
;r

•"

Members

Midwest
Detroit

1051

Exchange

Stock
Stock

Exchange

Building

Penobscot

DETROIT 26, MICH.
'5

WOodward 2-88i35

its devlop-

Branch

Office-—Bay City, Mich.

ment of the hot box detector, but

also on its many other interesting
multiple sigiial gen- products,
presently
accounts
for
The stock is listed on the Amer-

This

erator

communication,

A number of the

^,sJems arl

l^fovs

instruments. The
X
Products
™x^aS 12<?10

qXwvS'
radio respectrum signal generaOnl S
?n+ S?*T

fc !

tracer

country

lead-

system to explore its possibilities,

example, the New York Cen-

putting

fFacei-

Member*

Hmh

If?6-

Members Qt the

actly where the
moment

are

where

difficult

to find

ciation
the

the

times
ap-

iscounting

Servo Corporation
had sales of $3.6 million with 40%

favorable

for

v e

de-

1 opments
a

long time

the

INDEX

18-Year Performance
35 Industrial
FOLDETt

Stocks

REQUEST

future.

>
' Nevertheless.
are situations wherein given
a brea^ or two, the investor in due
Continued on page 24

INDUSTRIAL STOCK

there

N. Q. B.
OVER-THE-COUNTER

selling

25-30

pear

Harold s. Munroe, jr

2-2530

BS-630

stand¬

growth

earnings

its total

Teletype

one

year,

Telephone Richmond

9, MASS.

Certain¬

ard

crew

STREET, BOSTON

six

any

during flight. It gives the

ZERO COURT

over

months to

naviga-

business coming from
the Government, 40% from commercial products and 20% from
industrial
sales.
This
compares

CO., INC.

situations carry¬

ing prospects for really substantial
capital appre¬

Distribution

/O
KELLER BROTHERS

period in the market
getting increasingly

year.

plane

Retail

Engineering Co.

two-way
detector at its
Erie,
Pa., yard, with $4.1 million in sales in 1955
Also, the New Haven Railroad is Earnings last year were $0.41 a
a

'"Trading Markets
*

Barnes

*£££*,'

Last

railroads have purchased this

SECURITIES

navigation Topp Industries, Inc.

train.

MASSACHUSETTS

mclU(hng new techniquesi in

lac*io

course during the
flight. It automatically shows the exact geoServo that will graphical position of the
plane 011
instantly report the location of a a map

For

Brokers

in-

automation

counters made by

tral Railroad is

Yamaichi Securities Co., Ltd.

^Hng'fro^ th^ Tre^suryDepart!

operating mechanism and journal

Yorkr Inc.

Affiliate

amount to approximately $500,000

stocks

New

in¬

stance, such charge offs including
Sessco, a wholly-owned subsidi¬

a
continuous indicat on and
permanent record of their plane's

tends

hot box in

write

information

rvt

method

perfonn'different functions1 in
dustrial

Call

expenses

•

glass, plastics, machinery, textiles,
paper
and printing and rubber
and petroleum products.

various

issuecj

management

fabricated metals, ceramics and

whereby

deferred

development
|3een

current

industries-^®31 accounting ti'PQfmrmt of thoon
0n res®ar^k and development,
thn onr'niintiho'
the
treatment
these
,

not

For

governing

Department,

has
making write-offs until such
time as a program insuring maxi¬
mum tax benefits can be promul¬
gated.

not

Servotherm

as:

STOCKS

concern-

from

has

temperature

where

JAPANESE

dielnnment
development

5P"

amortization

the

share,

on
The final regulations of the

Treasury

_ancl. cor^rol 1^. in~

processes

tectors, the operator, besides
watching the train as it passes,
checks the graph sheet made by
the recording instruments.
Tf v»e

service,

Guardian Chemical

States

Iyie^lir1em®

operations

under outdoor weather conditions.

five

Lisbon Uranium

American

remote

for

write-offs

costs.

defense

our

Department

ing

™

branch offices

our

were

sees a

f.n

NY 1-1557

Birmingham, Ala,

Mobile, Ala.
Direct wires to

objectives
and attained: (1)

Tel. HAnover 2-4850

box

Three

Cable Co.

St., N. Y.

New Orleans, La. -

about $700,000 annually in sales, ican Stock
Exchange and at this
Norge, Va.
Another product of this
nature, writing is selling at 6%.
■*
aimed at
Servoboard, permits rapid, ecodevelop proper
nomical synthesis of automation
HAROLD S. MUNROE, Jr.
location
of
the
detector
heads
control equipment for
adaption to
along the track; (2) develop a
Partner, Hay, Fales & Co.,
method of mounting to withstand specific functions.
New York City
Servo is working in many other
extreme vibration fcaused by passMembers New York Stock
Exchange

hot

Triangle Conduit &

37 Wall

radiation

Late in
trols.
equipment, the

Servo

C & O installed its first automatic

Rosemarie Reid

ESTABLISHED

purchase

Corporation

HAnover 2-0700

Sales

is, however, too early to
earnings
because
the
is awaiting a ruling from

company

many

Servo

estimate

adapted the principles of infrared

radiation and other fields. Through
able

are

approximate $0.60

costs.

that

volume

measures

system.

N. Leonard Jarvis

newly devel¬
oped
products

RIGHTS & SCRIP

assume

other poten¬
tials for infrared: for example, it
has applications in guided missiles, bombing and fire control and

aura

been

attain

then

There

extremely dy¬

Specialists in

safe

Exchange
Exchange

allowing for some increase in

even

large quantities, this product

could

sys¬

fields, it
has recently

virtue

V1.

could

$14,750.

millions of dollars.

we a p o n s

namic

M 5?

|ion maI>k and it seems reasonable
to assume, that on ttie inci'ea^l

present initial install-

if the railroads decide to

auto¬

mation

sale

tems

BOSTON

Private

the

a„„inst

m 1957 may approach the $4.5 milr
Uon mark an(J u seems reasonable

12 to 15

shipped

Members New York Stock
Members American Stock

j
,

While it is too
estimate the full potential
the hot box detective, I

believe

years

tronic,

about

soon

ac¬

Exchange

the

The

Steiner, Rouse & Co.
19 Rector St., New York 6, N, Y.

snare against $u.oz a snare. t>ai

By the

ment cost of the hot box detector

ure.

for

past

Member

Stock

units.

Servo

tive

Jr., partner, Hay, Fales &
Co., New York City. (Page 2)

roe

additional 10 (the first lot out
the laboratory) of which six

expects to have

has been

Corporation
Associate

While

gineering Co.—Harold S. Mun-

end of the summer, the company

industry in
t h

Bought—Sold—Quoted

Topp Industries, Inc.; Barnes En-

Servo

„nmnan^

to the railroad

American

have already been sold.

of the essential suprliers

come one

to put in

company

Securities

partner, Hay¬

den, Stone '& Co;, New York
1 City. (Page 2)

presently building
five detectors on specific orders
from railroads. It is also building

opinion beupmiun _uc

mv
my

N, Leonard Jarvis,

nor

company,

mav
may,

be,

Louisiana
of America—

Corporation

Servo

test installation at Pelham Bay,

Corporation of America

America
America

intended

not

are

permitting the

Although
a
relatively
small an
Servo Corporation of of

United States
Available

Their Selections

offer to sell the securities discussed.)

Partner, Hayden, Stone & Co.
New York City

Companies of the

and Trust

as an

JARVIS

LEONARD

Our 101st Consecutive

Alabama &

and

In the investment and

30 years

;

Week's

This

Forum Participants

National Quotation
Incorporated
46 Front Street

Bureau
y

NewYorkM-i.

Number 5664

186

Volume

INDEX

Stocks and Security

llCHltnSTfllS

B. S.
Page

Articles and News

by G. M. LOEB*

III

Members: N. Y. Stock Exchange

E. F. Ilutton & Co.,

Partner,

•

Stocks and Security—G.-M.

Author—"The Battle for Investment Survival"

Current

Our

authority ad yocates following alternative programs
based cn adjustment to inflationary and deflationary poten¬
tials: (1) For the inexpert, splitting of purchases between

—W.

mutual funds; (2) For the

—Frank

offensive

Concludes

centration

well

He's

Financial security in a troubled

something

world

through

divided

this problem
the

s a n

but

Determining Jurisdiction of the National Labor Relations
Board—Reuben

Slesinger

v e s

San Jacinto Pet.

Importance of Comprehensive Insurance Protection

m o

while

1931,

way

were

ish

time

business

sharing

way,

to retire. I checked my

capital—I

probable income from
it—I checked my life expectation
I checked my probable financial
needs.
Everything balanced out
with a safe margin to spare. Tne
trouble began when ,4s a man in
the investment business I began to
check the probable future value
of the dollar. After I did that, I
felt I had to go on working. I

must

Rising Living Cost Relative

native

son

of San Francisco, I

used

the Alcazar Theatre on
O'Farrel Street and see "Kolb &
to

Dill" and in

show they sang

one

liv¬
ing driving them mad. I imagine
this might have been around 1919
a

song

about the high cost of

thereabouts:

After

1919,

they

did, not Tinve to worry about

'the

risipg cost of diving for the; .genleral nprice-pattern turned 'idown,
taking the Tost bf Jlyltig
,

Indecent years
.

Steel
Direct W ires to

Study

Philadelphia

Los Angeles
Dallas

•

Stocks Analyzed by National Bureau

Factors Affecting Bank

Research

Economic

v._

Coordination With Treasury Now Our Chief Defense

Problem,

Says Eliot Jane way

Manual

Listing All

Regular Features

and

Bank

——Cover

(Editorial)

See It

As We

businessman are

Insurance

Business Man's

Salt Lake City

Stocks.

Stock

Bookshelf

Dealer-Broker Investment

Securities

United States

0f the voters. I felt that my dewere too conservative for
any party to follow and win off i c e.
Briefly, the condition I

Available

Washington Ahead of the News—Carlisle Bargeron

From

Indications of Current Business Activity

Observations—A.

importance^
to at least
somewhat limiting fluctuations in

Our Reporter on

vital

its

will

come

looks

the

easy

Railroad Securities

either because they do

and not worry

It;'was

after.

about the morning
this .public spirit

which prey^pted the
a

SOUnd

•>***"

-y •»

;

dollar.

•

Offerings

Altamil

One ; Side of uthe••'ColliA
•
-west, I stopped ;i n Y

The State of

Carter Products*

and You—By Wallace

Streete—16

.—

San Juan Racing

Common & V. T. C.

—

Trade and Industry^—

- -

:.4

Reeves Soundcraft

Ahe de: Kansas •Gity:;:A farm; radio station. V: Wa*

and

____

-o^ni'laLla •tLie

delivered Ay

- ..

Washington

S Continued on page

Corp.*

Security I Like Best-*.

The

On my ^ way

SU 155

19
—

Securities Salesman's Corner—...—
The Market

Teletype:

8-8786

—

Prospective Security
-

1160

Exchange PL, Salt Lake City

DA vis

first Eiseny >
giving./ ^

^
.yy

Securities Now in Registration.

bower Administration from
us

HEnderson 4-8504

Teletype: JCY

Securities

Public Utility

way

not under¬
stand or because it is human hature to want to enjoy the present

Governments

Reporter's Report

Our

purchasing power of the dollar: I
The public
as
a
whole likes
what

Exchange PL, Jersey City

Wilfred May

Exch.

Spokane Stock Exchange

DIgby 4-4970

really be achieved but because I
feel
that the more
people who.
the nearer we

Members Salt Lake City Stock

Bankers

About Banks and

News

I feel it will ever

because

not

request

J.F.Reilly&Co.,Inc.

Mutual Funds

wanted most was a realistically
stable and sound dollar. I mention

written

•

■

i___

majority

Quinta Corp.*

A p&peif

Exchange

Recommendations

Einzig: "International Aspects of Higher
Interest Rates"
_.

policies to-

their

pattern

Coming Events In the Investment Field

because

fiffal analysis

sires

until '^lue.aow levels of.1932 :were
932; were
readied.

Bright Railroad Prospects Forecast in Republic

N.Y.

Teletype NY 1-1825 & 1-4844

understand

rising cost of.-living is a
relative'thing and has been with
ago}

wards the wishes of the

cost of living.

Years

INC.

40 Exchange PI.,

HA 2-0270

parties exist
to elect their members and hence

The

time.

correctly

value

the .coming

the

company

long

Chicago

could

I said this was inevitable

years

Available at Bargain

Railroad Securities

Republican party, the policies of
two had. been growing much
closer together than I preferred.

living. Today the insurance people
are
talking about "variable annuities" but even these are not

Mackie,

the

possibly know the cost
when I would

tied directly to the

Prices—Hubert F. Atwater__

concerned. In giving my answer,
I said that while I preferred the

old, if still alive. No
in the world,
not even Lloyds, would write me
a valid annuity tied to the cost of
65

the investor and

of existence in 1965

msurance

—Cover

Campbell______

radio program and I
was asked my opinion on the dif¬
ference between the Republican
and Democratic parties as far as
guest

checked my

Rails—Ira U. Goblsigh—„_____

First Mortgage Railroad Bonds

curity would be eliminated. Just
before I left New York, I was a

desk in the same office.

not

—Thomas

-Rating the

growihg

Singer, Bean

Same Old Railroad Problem: Too Little and Too Late

dollar

the greatest cause of error
trying to achieve financial se-/

despair and grief I decided
have no more of business and

could

think

still

Cover

(Articles especially written for the "Chronicle")

money,

In my
to

Railroad Executives Discuss Industry's Outlook

each

cautious today.

think

predict
Loeb

the

double

the ones who feel bear-

are

very

sizes

The. fastest

dollar.

They

fornia.

camps.

About the Railroad Industry

mostly oldsters wno feel that dol¬
lars
at times increase in value.

his
Cali-

has

contains those who feel con¬
tinuing inflation is inescapable,
The i smallest camp is made up of

motor¬

ing

Reeves Soundcraft

gen¬

camp

killed

was

relative

who

those

brother

m y

to i the

starts

Back

the

rather guess ;y- that the
biggest camp perhaps is made up

with the value
o

Pacific Uranium

group.-T

just the same.
The p r o blem

three

into

Hycoti Mfg.

.____

This

inflation.

WHitehall 4-6551

Outlook—J. Douglas Gibson

Canada's Mixed Economic

I know, there are no figures

far

them

with

label

eral

STREET, NEW YORK

WALL

has
in the pub¬

money

consciousness under

lic

those who
fear bury

There are
ignorance

dodge.

can

one

Research Is Big Business—R. C. Swain.—

Wall !

Obsolete Securities Dept.

Senate Finance Committee

—Roger W. Babson

creasing v value
grown more and

Soday

Telephone:

analyzes the media in each category.
changing and flexible policy is vital, with conindividual securities rather than forecasting the
general market.

your

obsoletes.

—Sen. Wallace F. Bennett

defensive efforts for

holding cash for

Issues Developed Before the

of growth; and (3) for the really knowl¬

must combine
savings, and

one's

™

GOLDEN HAND

Perspectives and Problems of Expanding Southern Growth

edgeable investor, careful selection from the entire number of
listed companies. Maintains any well-conceived financial pro¬
gram

Policies

Dwight W. Miehener__

stocks, emphasizing the leaders but with wariness

about permanence

and Fiscal

Monetary

Randolph Burgess..^.

Don't Underestimate the Stamina of American Business

individual having some market know-how, his own selection of
common

■ J

AND COMPANY

'III

Loeb

THE MAN WITH THE

Market

government bonds and equity-type

(679)

The Commercial and Financial Chronicle

. .. .

«r^1r

Column not available this week.

■;

Published

Sabre-Pinon

E. C. Eng¬

1-Diapers' Gardens, London,
c/o Edwards <fc Sn-nh

Twice Weekly

land,

The

COMMERCIAL and

FINANCIAL CHRONICLE

many years we

have

specialized in

Reg. U. S.

WILLIAM B. DANA
25

Members

BROAD

New York Stock

HERBERT D. SEIBERT,
WILLIAM .DANA

Exchange

ST., NEW YORK 4, N.

Reentered

York 7, N.

Y."

SEIBERT, President

Dominion,

Nashville

Boston
•

•

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•
•

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Canada,

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Other

market quotation
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Prospectus

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records,

•

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1957

Other

plete
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—

PHILADELPHIA
SALT LAKE

DENVER
CITY

Financial Chronicle

The Commercial and

savings, during peacetime,
with our tradi¬

forced

inconsistent

are

Our Cnnent Monetaiy

■

' an

during, peacetime
interference

following Hatemev* be¬
fore the Senate Finance Com¬
mittee Hearings on the Fiscal
Condition of the United States,
Under Secretary of the Treas'

In the

Randolph Burgess on
summarized the most
important facts which had been
W,

nry

inflationary

resist

State of Trade
and

(9)
A more
anti-inflationary
governmental fiscal policy is de¬
sirable: In the present high state
of

For

pressures:

Aug.

prosperity in this country, the
Government should have

tiring debt more rapidly. This is
probably the most effective step

new job¬
claims declined by 7,200 during the week ended Aug. 3 to
a total of 224,200,
according to the United States Department of
Labor. A year earlier, initial claims totaled 199,100.

less pay

applied to debt reduction.
(10) Similar restraint in exces¬
Some of the public debt has been sive
spending should he practiced
shifted from banks and into the by states and municipalities, busi¬
been

-The

fore.

Personal

ly shared
throughout
This has

encouraged

Burgees

extensive
chases

credit

/0v

After four

with

we
renewal

...

live

years

Consumer

the

keen

consumer

shutdowns

cl1r^en^ inflationary infnrn es may
pressui tnniipn
nKo

ill

npnr

P
abate in the near future, though
of thig ig
uncertain.
Furthermore,
^ abatement may prove tempo*

inflationary

unlegs

rary

measures

are

taken

Th'rre6 curbed AssTcret"rv which affect the underlying causes.

serious

domestic

economic

' •=.

tjern»

While
f
•

•

(.6) This raises the question
whether these policies should be
rchixed or whether there is some
pYob-{
i-°
!• VX
in
The relaxation of these policies

Humphrey said in• his opening
statement, "The threat of renewed
inflation,..-.< .'is perhaps our most

some

and

(7) We should not underrate the
of present
policies

effectiveness
It

(3)
been

;
'

risk

the

runs

bust."

'boom

and

Federal

following

intended

but should have patience

to allow

them to work: These are the

The
to

Reserve

lias

policies

monetary

resist

inflationary
pressures: Its principal policy has
been to limit the growth of credit

poli-

cies which have been effective in

in other countries
They
have
proved historically powerful infiuences
for
economic
stability,

this country and
over

years.

raany

and, hence, exercise some restraint They require time and patience to
on
the demand for
goods and become effective.

thereby restrain

services, and

of this policy
and the heavy demand for funds,
interest rates have been rising.
consequence

(4) This Administration lias followed fiscal

practices designed to

(8)

alternatives to

feasible

presc"\ 1>"licies, have bee"
sented in these
ternatives

direct

controls

al¬

desirable.

' Governinentallyor

^ b';
a

The

gathering strength, of: the steel market is more of a "feel"
an actuality for the moment-, states "The Iron Age,"'national
mc-talworking weekly, this week. On the surface, the market is
eawdling along at a snail's pace. Except for structural.-plate and
oil country goods, demand is sluggish.
But a look behind the

and-

than

"in¬

wa^os

pro¬

the

b Some

community

the

have

the

pressures:

The

ing about a lessening of the
inflationary

ing

statesmanship

.of

fast production

says

pace

steel firms

some

in the-months ahead.
are

doing better than
as much

better salesmanship.

semifinished steel

A few mills are stock¬
hedge against a sudden upturn in

The metalworking weekly reports that the Senate subcommit¬
hearings on competition and prices in steel are not following
the pattern of previous hearings. The steel makers are doing a
better job of presenting their side on the case. They're taking an
offensive rather than a dt fensive position. The
probable outcome

needed

The

should

tee

But

continued vigilance must be main¬
tained against their recurrence.

(13)

fact

demand later in the year.

cur¬

pressures.

assurance

responsible for this

mone¬

and

rent

the summer peak, which
steel consumption.: ';...

passed

spurt in

others in the present market, adding that mill location is

fiscal practices of the
past several years may be bring¬
tary

"The Iron Age"

t.'The. Iron Age"

for lasting abatement of

inflationary

upturn in the

T e competitive race among the automotive Big Three assures
continuing strong demand for steel once new model production
gets underway and the possibility of an auto strike next year is

economy

§uch restraint tluoiwhoM

segments

looking for:

are

weeks are,

about

renewed

further

(12)

men

gives for a market perkup in
that automotive steel inventories are
at low ebb and will need replenishing soon. ;Metalworking pur¬
chasing agents are eyeing steel stocks in the light of a probable
business upturn after Labor Day and- further, plant vacation shut¬
mean

involved.
Bushm*«es
must recognizO. the broad public
interest in the prices set on their
products and services.'"

ately

steel

reasons

the next several

downs

those persons immedi¬

future, it declares.

near

and labor leader¬

rest

reveals

scenes

his

Eisenhower,

have the responsibility to
reach agreements on wages and;
other labor benefits that are fair

economic
the part of Fed¬

will be

a better public
understanding of steel's problems in setting
prices to offset rising costs and help finance expansion and mod¬
ernization, it further notes.
•
*
♦

eral, state, and local governments,

the consumer, business, and labor,

will arise only from

straint is inevitably
be achieved

natives

apprecia¬

evils of inflation:

of the

unpopular.

as even

that

Such

such

hearing

useful

most

make

the

disastrous

the

public

aware

of the

results of inflation

the

nation's

oil

crude

slocks

foreign crude totaled 285,822,000 bar¬
This compared with 285,241,000 barrels the

before.
was

accounted for by a
more

731,000 barrel boost in
a
150,000 barrel de¬

than offset

Gasoline stocks throughout the nation
dropped 662,000 barrels
during the week ended Aug. 2, the American Petroleum Institute,

instrument:

trade

that

cline in domestic crude.

information needed

the

reports

foreign crude stocks, which

hearing develops and dis¬

seminates

industry of the United States, the Department

agency added.

The increaso

committee is conducting may
a

oil

currently

Stocks of domestic and

rels, the

less

the

581,000 barrels in the week ended Apg. 3,

week

believe

prove

Interior

rose

only if the alters

recognized

are

As for

Re¬

desirable.

your

Equipment Trust Certificates

year

companion rfcport, the Labor Department said factory
weekly .pay. rose to $82.99 in July, up 19 cents
a week from the previous month.: The average factory work week
was 39.9 hours in July,' or. qbput the same as the 40.0 hours in June.

ship

Railroad Securities

J"4'---*"

Unemployment fell 300,000 between mid-June and mid-July
3,000,000—more.'than! 100,000 fewer jobless people than in July
In

(14) It is for these reasons that

Underwriters and Distributors

York,

workers' average

inflationary

increases

"Business

said:

can

not

New

or' close to 1,000,000 above

1956.

in¬

continued

"profits

President

arc

enforced wage or price controls,

Economic Report of last January,

tion

hearings: The

1 ..of

the

than

greater

all

mid-July;

67,200,000 at

earlier.

duct] vb v."

well

Michigan.

number of

record

was

v e n.e. w a

pressures

reported

and wage

opportunities in

were

principal cause of the cur¬

rent.

necessary

Nation.

re-.

a„d'accentuating'the infla-

ultimately saps the economic

vitality of

declines

biggest

The number of individuals claiming unemployment benefits
totaled 1,170,000 in the corresponding week last year..
The Government further reported that jobholders climbed to a
..

pointed out by one
the meembers of your commit¬

tee,

in^ea§ing the!"demand for

^ jn

dangers.'It would

serious

has

cruel-injustice to
great majority of our people f.

ation, it

the

"<
few benefitJiom in-

There is some evidence that the

have, been faced
of

demands .for profit

The

Illinois and
.

Such restraint should he
matched by equal restraint on the
part of business and labor in their
creases:

and better employment

industries.

(11)

creases

prjce jndex is now nearly 5%
higher than it was 16 months ago.

augment puiv

(2)

^stable prices,

hag

resort to

pres¬

prices have risen
past 16 months. While
amount 0f these monthly rises

sures:

and without the
price increases.

further,

usual resistance to

inflationary

the

for 15 of the

purchases,

with

(5) To date, these monetary and
practices have not fully

overcome

large volume
W.

the impact of
felt most

fiscal

popula¬

tion.

where

severely.
.

the

areas

agency

ended July 27 dropped by 67,600 to a

relief in meeting this situation.

some

ere(jit restraint has been

wide-

gave

those

income is at
a
high level
and

simply

lires

also said

insured unemployment for the week
total of 1,230,600. the biggest
weekly decline this year.' The improved picture was attributed
mainly to the reopening of plants closed for temporary seasonal

hands of the

be-

ever

slight

.Latest available figures on employment reveal that

been balanced and the

than

rather

some

Output of cars rose moderately while truck build¬
ing declined, resulting in a modest decrease in overall automotive
production.Electric power distributed by the electric light and
power industry also showed mild curtailment for the period.

improvement;

larger surplus and should be re¬

Industry

Business Failures

-J

public, and the float¬ nessmen, and consumers: All such
ing debt has been reduced. Gov¬ segments, of the population have
ernmental expenditures were re- been..
increasing
their debts at
developed.
duced
through
1955,
but both much more rapid rates than the
(1) The economy is, and for defense
and
nondefense
items Federal Government. There needs
some time has been, operating at
increased in the
1957 and 1958 to be
greater public recognition of
a very high level:
Employment is bU(jgets.
the dangers of over-expansion and
2
at an all-time
lt ig {rue that, in cutting taxes
over-consumption — on bororwed
peak._ We are in 3954 and jn helping housing, money—at a time like this; The
Producin g smap business, and the farmer, the
citizens of the country cannot look
more goods
Administration may have-in- to the Federal Government alone
a n d
services
creased demands, but these meas- for the necessary restraint in
f

Price Index
Auto Production

industrial production the past week nei^
indecisive course with steel production, reflecting

two years, the budget has which could be taken by the Fed¬
surplus ha9 eral Government.

the past

' ^Retail Trade .1
Commodity Price index

Total

Federal
a

Carlaadings

Food

particular

and

segment of our society.

policies followed by Federal
fiscal policies employed to
resist inflationary pressures. Declares equal restrain should
be exercised throughout all segments of the economy, including
business, labor, consumers, and state and local governments.
Burgess cites monetary
Reserve and Administration's
Mr.

against

discriminate

the Treasury

Production

Electric Output
V

unnecessary

with the individual's freedom

RANDOLPH BURGESS

By W.

Steel

The

Specific curbs on credit for par¬
are

Under Secretary of

tions of freedom.

ticular purposes

;

Thursday, August 15,
1957

....

(630)

and

necessity for self-restraint to

organization for the

oil

industry, reports.

Motor fuel in storage at the

barrels

against

weekend amounted to 176,360,000
177,561,000 barrels.

year-ago total of

Heating oils continued to move seasonally higher. The heavy
grades, such as are used by industry, were up 206,000 barrels to

prevent it.

Continued

page

Mortgage Bonds
3 ESTABLISHED 1694fc-

Guaranteed and
Serial
1"

Special Stocks

STATE AND

MUNICIPAL BONDS

LAMBORN & CO., Inc.
99

Obligations

WALL

CORPORATE BONDS

STREET

NEW YORK

■

5, N. Y.

LOCAL STOCKS

STROUD & COMPANY
INCORPORATED

SUGAR
f

Raw

PHILADELPHIA 9
NEW

YORK

frrV.U

PITTSBURGH
V. *1 *•.<

RHODES-HAVERTY BLDG.
LANCASTER

A LEE NT OWN

.VILAVWUUCY,

ATLANTA

WALNUT 0316

LONG

—i
«,•

1, GEORGIA

—

Refined

—

Liquid

Export*—Imports—Futures

DISTANCE 421

L.
DIgby 4-2727

Volume

Number 5664

186

The Commercial and Financial Chronicle

(681)

ally enjoyed a fine management,'
successfully weathered the De¬

and its sustained and
uninterrupted record of cash di vi¬
payments sincfe 1922 is a
factor promoting investor confi¬

pression,
•

By DR. IR A U. COBLEIGII

•

^
"■vo

dend

Enterprise Economist
•

Summer

about

comments

certain

trends, and prospects, if

this weekend the dean of financier-statesmen is offer¬

share, in the celebration of his eighty-seventh birthday to
50,000 "guests," via publication of that number of first-run copies
of his memoirs (My Own Story.
By Bernard M. Baruch. 337 pp.
Henry Holt and Company; $5). Long overdue is this authoritative
amination

and

one

efation's most

Reared

varied

midst

his

South Carolina

own

$10.70
do

careers,

Central

family's

Pacific,
wasn't

ing

>■?

May

Edward

authorize

error

the

Kuhn

purchase of

Schiff

refusing
key block of 40,000 N. P. shares

-and

mid bu.ses^

folks,

house

industry,

drastic

erosion

the

Texas

Gulf

and

$220

Sulphur

certaillly mterest mcome-minded

buyers.
Along the same

million in

Some progress

revenues.

made,

however,

York

estate

Chicago.

current

income

™

imoorHnt

6U2%.

• ■

' *

interest you, the pos-

If mergers

WHJ-

J?and
panl%^ Pacific and

^"1l1rnrt

f
«•
inspected:—
and

Real.

—

per
its $3

dividend.:; The
yield here at 46 is above

tection

t e r r a i n- between
terrain

and

power

share) in pro¬

(about $5.40

magnificent territory served, with
i0>613 miles of track in the highly
New

earning

substantial

offers

On the plus side is the

industrialized

1 •;

•

-line of reason¬
ing, Great Northern, /which has
paid dividends steadily since 1940,

this

earn

money-losing passenger traffic,
its

should

Should
-

—

numho? of^even today, railway ating1956. miliion in net'revenue
with a f0r $17 CN earned $6 02
1
ically. solid

suggest to
you that Milwaukee^ 4V2's are a
you that Milwaukee 4V>'s are a

^cs/lbout' .?nlyJ)™ «rc fPul,Kl share last
in

£?rtiSllart undervalued bond at
61. Then the Erie and the Lacka-

nor

the "Favorite Fifty" top

held by the trusts.

(The

stocks

two. in

you're curious, arc Southern
Railway and Atchison.)
Withal, however, in recent
weeks the
most
solid
group
of
performers on the NYSE have

case

been

rails

the

and

such

some,

the

equity in
xutm.v
iiuvsj,
vxci
luuigiuuxauun,
many
lines, via reorganization,
alienated share buyers from rail
n,.reha», mther for vanra
purchase either for years, or foror for-

direct, if sometimes abortive, participation.
area, his account of the initiation of the

including

its

problem.

Sz.

i"g

have

investors

First

,above

back

list

rails,

return

be assembled

Company,

the

all, yields.' A
6%,

almost acted like
Well, what's send-

brut

tracks?

very

re-

year. It should hit $6 30
this year and the establishment of
a
regular
$2
dividend
should
shortly be possible. In 1951 CN
grossed $683 million.
catcd

wanna

If it dupli-r

$1.1

that

Meanwhile,

correct.

looks

stock

substantially

terminal and ferry service in
In the case of
both of these possible mergers,
operating economies running into
the millions may be expected.
This piece is not intended as
extravagant propaganda io*- rail

the

under-

equities. It is, however. de«ign^d
to suggest that the rail list, is way

priced.
Many .people
]ook

in/Hen

are

taking a kindh-

those days.

„uii^

ST?

behind the

Just

ger

wrong with CN
10% rise in traffic wouldn't

fullness

in ;the

New York harbor.-1

share,

may,

time, arrange a marriage. They
have already merged their passen¬

figure under present
conditions,
it
would

.upwards

earn

may

be insPected: and maY suggest-to

There's nothing

averaging

can presently
rising interest

that

operating

rates have made invcs.ocs farmore

which he got into with Morgan (but only briefly when Mr. Morgan

Baruch's

dog

being

spcctable

gagged at

: billion

tne

equipment trusts lying ahead. The
greatest single problem it has is

The entire rubbing out of many
rail
common
stocks,
and
the

data

the. industrial

the

debt

under court orders.

growth stocks.

Cobleigh

round

pre-tornado Saturday morning, May 4.
/
deals for other roads, as Atlantic Coast
Line and Louisville* Nashville, Mr. Baruch aiso supplies original

sulphur

funded

vx. tue

and

these equities is not particularly
significant, but yields of this order
on
authentic blue chips should

rev¬

On less well-known

own

moved

the

largest annual railway

in the U. S. and its 614 million shares have a lot of leverage

enue

which in 1956 accounted for 11.5%

that

through his

secono

■1

11a
,

New York Central generates the

trackage operated

the stock market-place manip¬

Jacob

oim

he details from the floorbroker's

Loeb's

o r

7Vi% return.

year

the $2.80 present
dividend, yields 6!4%.
Now it's
true that the "growth" factor in

$5.70

very comfortable
spectacular value.

this

Southern

one-third of

arbitrageur's op-the-spot observation. Included is disclosure of

decisive

if not

provides

income,

dismal 30's found

contributes much to the historical annals of the struggles for Great
Northern, the Union Pacific, and the Northern Pacific. The epochal
and

h
f

J-

$*214 million of outside annual

prospects of a
payout and a stock

some

the

ulations between Harriman and Hill, represented respectively by
the investment banking gladiators Kuhn Loeb and J. P. Morgan,

Northern Pacific Corner of 1901

e r s....

but
cash

house—and

Baruch

ivi.

well

idus

uuu<uu

UTl

cates (with extras) a 1957 distribution of $1.80 per share (the
earnings should run around
$2.70). Today, thus, Atchison, an
absolutely top-flight carrier, with

per

split.

mar-

from

gives original sidelights on that
tycoon's several defeats of the elder J. P. Morgan (who neverthe¬
less persisted. in referring to the railroad builder as "that two
dollar broker"). Mr. Baruch who lived at first-hand through the
mighty battles for control

cl¬

and, pow, the

personal documented tribute to the genius of

Harriman,

the gross revenue
Integration of operations

better

6.25%,
higher

1 w.l

w
*

for."the

•

In addition to
Col.

u s

freight,

With his "eye-witnessing" ranging from participation in the
highest echelons of the country's industrial and railroad pioneer¬
ing, to a charter membership in the glamorous "Waldorf Crowd"
of low-down speculators, he makes a number of authentic con¬
tributions to the; historical literature of finance.
/ *
-

yu's

wars, a counselor of
Presidents
of
both
political
parties, Mr.: Baruch writes a
story that is enriching as it is
glamorous.

-"V-g

Wilfred

r c a

t ruck

f§||; ing two
V

his

ket

leader of his country dur-

quite remarkable that

tioned earlier as favored by

share for 1956. It could
this year. ■ The buyer
here not only gets a well covered
$5 dividend and a yield, at 80, of

Sou thern

five, a self-made millionaire
ten'years after, a super speculator-fihdef-promotcr of the
Street's golden pre-SEC days,

It's really

Southern Ry. and

the Nashville, Chattanooga & St. Louis. LN earned

Pennsylvania,Atchison,

full-fledged partner of
brokerage firm at twenty-

dence.

traffic

merger with

Union Pacific,

Wall Street office boy at nine¬

teen,

cer.tages

who

cl i d n't

gen-

background,

shares, their

vestor

seif-exour

rail

«•

of dividend increases.

any,

Rail shares, like long skirts, are
either in or out of fashion. Until

ing a

self-revelation

*'.•

Atchison, men¬
insti¬
tutional investors, should still be
column.
available on such an! attractive
1920 they were the lions of the and
improved
earnings
should
24
tusu
market and any substantial in- also result xxuxxi the lurixicunuiiii yield basis. Atchison Watins'? indilesun
from me forthcoming "
—.
--

MR. BARUCH TAKES A BACKWARD LOOK
Over

By A. WILFRED MAY

industrial :11st in mar-

ket altitude; that higher vields
may be had here thannf Indusin
UU!.,+51i|„

vnc

ohame

Pfimnq-

the

ugly word "gamble")' highlights
the ideal combination of ability in industrial research, promotional know-how in its most legitimate sense, financing strategy,
and

plain commonscnsc.

use

>"•*;

Appraisal of the Leaders

southern

•

eroiis

ones,

while not

had been hoped for,

gea-

will

; hike - animal gross
railroad revenueby some $430 million and
•substantiaiiy- -offset
the ■ seven

Valuable

through their authenticity, as well 'as-interesting,:
♦are; Mr. Baruch's first-hand appraisals of leaders of yesteryear. } *
rHarriman wa& Unique :m!being a great builder who was also "

•

„w

?y^.a^d^r^ a[ld ^ls.inS ,^ani^a%; earnings and dividends and, quite.
viIIav' SL?
Su^fl l? r .Ohm .possibly, in market price.
VaUey. give, the. road a forwaro; . . . a ; ■ , , . .
'
With Carter Harrison

ye.aiV11 could d°xa; little .better
^
■
. . .
.
tRls year' 0n a $2.50 dividend, this"
^ (Special'■
OVer the^ost' of
-common. ;at 55 yields.-4i§5%i ' A • MILWAUKEE, Wis—^Herbert O.
2 6peratibtis~lss/2r'*^'f''vvy'* 'J
^ ®
clausemav ent^l
g escalator higher cash payouf in the near fu- Phillips has joined * the :staff of
".C/% The Guggenheiinsrhe persistently revered, with detailed chapT
^2 2 "jt \ T'ture Impossible,and the long term .jC^rtfeE H. Harrison^- Go./ Sch- •
i ter and verse, for their unfailing integrity. In the metals field also, /
^ aS<J? ^ considering* prospects here are quite a& bTtght roedcr Hotel Building.: ' * '
"
he pays tribute, with "inside"' factual detail, to Daniel" C/Jaclding /
Hv?18 "
those- of any Eastern Road.
#.^
i fot fH^-abie^ and- daring pioneering" ipLmass-productionAgain" in"
;rJ-1
^)sicai plant is ih*-v4-'.-Chesapeake&f,Qhioeathed'$8.2dr ••"'*" Joins W. J. Brand ? »• V;"•
;the nunircgarea,-Mr. Baruch gives enlightening- accouiits of his' ^
per ®hare for J»56 .and Should ex- y/ (Special to Tiih Financiai. Chrontclk) U.
doing&^some-dm the Waidorf Men's Cafe) with William Crocker, :r100%. dieseljzation has now been coed $8<50
thls year# This id
ctiimnvr an Wi^konrikd C
son <>f : 6ne of the builddrs "Of ; the Central Pacific-Railroad,;' and
f coverage for. the ; $4
v
Senator Geerge Nixon of Nevada involving Goldfield Consolidated,
/TaSte to,.acquire the. tcetmique~of the-stock market Hill, who built

•cents art hourunion contract

child'* ivhen it csime to market

^ Avhnt

\057

■

effective

YfieGreat^ Northern, "was like

■'V'

■

•

,•

Continued

page

redesigned, and radarized classification yards have increased efficiency and 'tbe 'sustained effort*
to
slough
off losing passenger
mileage is showing results.
All

most roads need now is more

divide0d? and provides .at 64 a with Walter J. Brand &rCompany,
Eighth ,Strect.

6^4% yield. C & O has tradition- Inc, 607 North

traf¬

fic; and if they get it, the carry¬
over
into net earnings could, in

Vilas & Hickey
Nezo

York

Stock

Exchange
Midwest

/.
,

American

Stock

Exchange

HAnover 2-7900

gence

let's

public utility

;

;;

the

;'/; =■■..:j; industrial
bond, and! stock brokers

dra¬
/

;

Members New York Stock Exchange
and American Stock Exchange

; ,v,7':v

of the
ouick
trip

RAILROAD SECURITIES

stop¬
overs) to cee what are some of the
issues entitled to a merit rating at
the moment. We can't;cover them
all. but we'll thumb-nail sketch
a
few. * '
z.
* •
:
>
'.'
•

and

120

Broadway

•
.

New York 5, N. Y.

Telephone REctor 2-4949, ".r

Teletype NY 1-724':
/ Private wire to

freightsand manufacture
'goods-- represent Mnoroasing - pe
ous

•

quality issues with interesting
prospects is Louisville and Nash¬
ville. Still a heaw/ carrier of soft
A

T*r

Unlisted Investment Stocks

■coal, it has benefited by expanded
'and
diversified industrialization I
{A1 ltd
rniscellane- I
ih its ♦ArftWrvrv?'to Ihnit rniscellane
territory so that
1■

Common

Preferred

Bonds

Leased Line

Guaranteed

(without

list

•

DEALERS

income.

popularity

take

the

motivations for

NY 1-911

railroad

■

quite
-

having notated a few of the
some slight resur¬

Teletype:

through

•

real estate, or investment

rails,

Finally, the prudent rail buyer
selecting stocks today finds him¬
self looking beyond the rails for
extra income so irees — oil wells,

26 Broadway, New York 4, N. Y.
Teleplione:

instances, -be

certain
matic.

MEMBERS

Philadelphia

• '
-,i

;

/.;

/•',

'I:

The
<3

Commercial and

Thursday, August

Financial Chronicle

15,1957

(682)

chines. This

Don't Underestimate the

slated

change

future:

economic

important,

seems

♦.

periods

•

■

the

causes

the

birth

increase in

being the
rate

approxi¬

now

—

longer and, at the same time, more

people are coming into the coun-

acquire the
capacity to
our

! ing second to
spenaing.-'.ln:deferent ways, going

into debt; has been encouraged,

ther;Hrst . place,., with' the dollar
aeclinirig,.ciQiiar,deDt could be re.
paid witn greater ease, hi th»
second place, the fact that rales of
interest charged on debt were, for

four million annually —
fact
that people
are
living

the

■

me,

observe in

->iSwT

to turn generators ift the' dency for most countries to man-, served .that It/was in the period
production of electricity for. pub-| age their., nioney ,011 thq;. libeiaJ of' artificially/ easy , money,.: tjhat
11c use. Also, solar energy is talcSiue* so that expansion has taken consumer • .?eredit. made its rapid
ing its place as 'a producer of . placeat an accelerated rate. While rise. Easy, credit caused some to
power. In the later development,- some countries have had fair sue-, feel, that
we had discovered a
my good friend, Dr. Gerald Pearcess, the currencies of others have
shortyput ,30 a-high: standard of
son, who grew uo in the State., of depreciated rapidly.
* ...-V3 Irving
The short cut being the
Oregon and was educated there, ;
^ d()Uai. ]ms not £scaped thc
««•
has had a major part.
downward tendency. The decline; the
thik-plaee; saving; was disOn the whole, American Indus- in the
purchasing value of the C0Uraged by?asmaller reward
to
try is operating at a new high rate ddlfarjias been about 15% dufmg the saver in the form of an nrn_

started

present

population

mately

ahead. It is

many months or years

progress

days-for'
forecast

these

popular

savings

rm,

AslSl'Why

have

agriculture

stream

Here

business people to try to
the level of business for

,:®*?;^®^

MAnev Ruling

MICHENER*

our

and research, shifts in the
importance of individual industries, money management, and
the new prominences of Federal finances. Maintains American
business has the capacity to make the necessary adjustments
provide free market conditions remain.
changes; technological

improvements:

preci-^j

•

nearlydou-'-.i'^Managed^money^isjbeing/given
bled production per worker since a a trial run .in this country.^ By
1940.
We
travel
at
new, .high' "managed
money" < is meant a
speeds. The new record for.; air money system without the direct
travel, made a few months - ago,restraint of a metallic standard
was
1,900 miles per hour, and it and one controlled.; by a money
V is
expected that this record will: arid credit authority. Almost all

and analyzes the following develop-

cites

economist

Bank
ments

further•

sion. Technological

Manhattan Bank of New York '„

Economist, The Chase

labor and may,

saves

increase speed and

Stamina •! American Business
By DWIGHT W.

and t

directing ma- * necessary adjustment
tard progress.

controls

human

than 40 million children have been

eco¬

nomic envi¬

born in this country

ronment those

and with the span

changes which

going

are

to '

make' the

fu-

from the past. •

note

past

been

tion

those*

the*

will

much

larger than it

whose
nomic

a v e

eco-';

s
,s,

enable

sufficiently

them

critically that which

observe

was

going

weHe\° of*fcday Ihe'lSanifes
which

significant.-For example, Adam Smith observed in
his day those things which were
contributing to the wealth of nawere

—

„

Marshall

Alfred

tions.

today.

later

centered attention upon

monetary
developments which were destined
to shape much of later economic
history.
Our

particular era is a time of
economic
change.
In fact, basic changes are now
almost taken for granted. So it is
that, for all of us, taking time to
observe the significant new char
acteristics

our

economy

particularly rewarding venture;
Changes

factors, most
during the time of
our own generation, stand out as
of major importance. I should like
in

five

of them coming

to call attention to these and then

perhaps to draw from them a few
conclusions with respect to our
economy.
%
•
'

•

Population
In

the.

first

Changes

place,

statistics, after being tiresome and
dull reading for some decades,
have now become alive. They are
now

iitl":

Relative Position?

may

information

with

replete

significant for

businessman
in every part of the country.
There has been a sharp increase
in the rate of population growth,
every

A.;.

./.

have little application nowd'

!e;

'-ii

""u

..m"

ing

is also chaneiii"

have grown rapidly—otheri^qcline inethe dollar has beeii savings.,For example; .automobile!.;
have progressed less rapidly, :bi-;..takoi) rather lightlyAIncoinc?\ re- are erowding.antiqdated highwajs
have declined. Agriculture,, tort covers have viewed ;their- ..dollar-because,,we have neglected, to
has bee„ producing an gains hnhniimrmu Kamuea fim Hint. Avavs." Also.; in. some areas highjwith satisfaction;debtors sufficient savings into new

within

country'

the

^wrthin the cou try

movement

iiom

counuy

our

has

the

„

present

gaining'pfpuStloalta moreranid
rate

than

is most of the

country,

its

splendid achievement in the
expansion of electric power production is avilXClvVMXB new indusattracting XJV.W inuuoUUV,1UU

tries. Business is
rate

is less

the United

for

thriving, and the

of failures

States

than

general.
Thus, population changes are of
vital' importance in the State of
Oregon.
labor- force

totals

now

About

country

people.

one-fourth—largely indus-

government

time

the total number of farmers ,•>their. pockets. r^
has been on the decline, and also
As we look to the future,
years,

*he number of farms. But the de-

has

demand

great

been

for

well

advance

of current increases in

productivity. During the past 10 years, for
example, rates paid to labor have
increased some 61%, and productivity has increased only about
26%. This increase in• wages has
naturally had important: bearing
the increase in industrial costs

the increase in prices generally. Also, it has stimulated deand

mand

for

found

credit

industrialists

as
....

to expand

necessary

working, capital.

;

some

economists conclude that slow de-

duction has been

cn
so

improved that
I

smaller number of farmers

feed

our

grow

Many, therefore,

n g

are

nrumon

true,v of

can

in_

private

the

course,
would do

vestor

well

in-

take

population.; - careful look at his holdings. If the
finding em-: dollar is to depreciate 3%; a year,

perhaps

to their

3%.

liking.

is,

reality,

providing

"return. If the rate, of return

J11 contrast, the

service

'tries, including trade, have

„

110

were

tunities

fords,

which

are

ambitious

FLORIDA

and

Never before

population

SECURITIES

with

Inspired by

earn.

such

our

af-

active, more
imaginative,

the

this

oppor-

economy

world
size

enthusiasm

has

Industrials

Age

generation

and

ef-

and

Research

the

United
States has witnessed the beginning
.

Invest in

Golden Age of machine

new

production.; Technology and meh a n l c a 1
improvements have

Florida's

Goldeii\f Triangle

openecl up a whole new era of industrial
progress.
Research
has

TRADING DEPARTMENTTELETYPE

become

MM51

I ALFRED D. LAURENCE I
&

COMPANY

INVESTMENT SECURITIES

tool,
More than a hall-million people
are now engaged in research, and
some
$7 to $8 billion a year are
being spent in the field. Almost

every

methods

201 S.E. 1st Ave. Miami, Fla.

Phone: Miami, FRanklin 3-7716

industry's

day

new

and

into being.
Automation

strides
chanical

new

most

controls

other words, by rates of interest

IrhPn

intpt4Pct

find it impossible to keep interest
rates

down

allowing

without

credit to expand unduly.: But to

credit 'restraint

remove

and

major

work andmore

fulls
work and. mnrp "frills' in oui hv-, getting maximum protection
m
- - * - - ^* - •
century: Federal, debt was about a
in^Do, 1J:. youiself is now a against depreciation in the value billion dollars and total annual
Jnea"s 01 diversion,- or a hobby, of the dollar.- The moment the. Federal-;-expenditures
about a

seVioi1clyit^Yicwkalf-hUljon dollars.

t®j_

i\ow,

xneie

nted

tne

rSin tnH
and
radio

Txr
TV

decline in. the dollar is to
continuou^^nd dirges, investn^5nt^into channels which provide the greatest real values over

in securities
or

manv
many

falling due

vears
years

later
later

Continued

Governors of the Federal Reserve
en
System, expresses it, "Once .the
Along with the service indus- community accepts the prospect
tries, many others, including pub- of continued inflation and begins

currently
ot' no

was

page

utilities,

petroleum, chemical
airplane industry, have
expanding at a rapid rate,

the

and

been

older

some

industries

have

declined, new ones have taken
their places Now we have a whole

:;c- Pop.

young, vigorous in-

dustries, including atomic developments, plastics, wonder drugs,
new metals, man-made fibers, etc.
The important point is that
equal degrees of success, and

ence

the

government

[inflation]

creep.

He learns to walk, run and

finally

gallop

not

been

ings

Thrift

ings

these

are

about

should

clear

great

that

serve to
ours

make
a

practiced

free

support one sector at the expense
of the others is to slow down

larger

Over-all

tural

fact

enoudi

Tess

not

being

6V2%

the

cannot

large

of growth with

savings. One of

present

water

Company's recent report
to

time

We
of

greatest needs

available

King, Liboire, Stout

4 Co.

Established 1868

was

wheel

stockholders

Eisele &

was

small stream

our

Approx. price $2 per

dis-

ratio

"than

run

STOCK

buf

is" no larger
it
when the growth
requirement
much less than it is
today.
which

COMMON

run-

provided

relative
show

Pittsburgh, Pa.

proportions

savings
income

1853

snv-

siduously than is necessary: Since

posable

to support the agriculsector of the economy over
the

Founded

generating

INC.

INDUSTRIES,

the growth of the economy

at-

VICLAD

Furthermore, under managed
money, the American economy has

tempting

many years

ceases

ning into much larger proportions
than formerly, it also needs sav-

part of progress. The experiof

fant

un-

equal rates of growth, among the
different sectors of the economy
are a

to make its business decisions in
the light of that prospect, the in-

un-

market economy, and for our government to
favor, to aid, or to

replacing

These amounts
large relative to theanfacnUaI product of our farms and fr
$16
tones. Federal debt was about $
per capita. Whether this debt was
were not

CU^1S^» and so on> almost, without

new

are

of the

use

•>

come

Me-

the

in earlier times.

(

products,

making

than

press

then, in iealy.termSj . he
Fortunately,
we
have had a
would be losing a pa^t.of his prm- -wholesome exercise of credit'iecipal each year.
y .
straint by our monetary authori-7,One reason why the slow de- ties in recent years. It has helped

grovvn

materials

industries.

basically,

printing

Plpyed in service and trade indus- ' cline in the value of the dollar has check excesses. It has brought no
tries, a total somewhat larger than not caused greater disturbance disaster, vav?;
employment in all manufacturing thus; fary-is that the public has
:
"
v.. V'.,;
,v ■■■■•''
industries. Tho rise in importance^; not; feltitfiai'^ei decline would, bb^ .Predominancy of FederM Finance
°f "sei-vices" is a manifestation of important or continuous^.^The in-/
Federal finance has taken a poour
higher living standard. ,11, vesting public has not.made long- sition of '* nredominatingimpormeans we. have more specialized range plans with a view, toward tanco
Back
at
the turn of the

Production

Our

the increase-in saving are best ac¬
complished by'market forces—in

indus- 2/2%,

rapidly m importance. More than
17 million persons are now ,em-

worked

ficiency.

Bank, Insurance Companies,

spending and

reduction in

chne in the relative importance' cliiie in the dollar is inevitable which stimulate saving and retard
of farming isnotragedy.lt simpij^uhd that this is the best we can spending A With high demand for
means that efficiency of farm pro- hope for. If this assumption were credit, our monetary authorities
rfllpfinTl hnS hpPB
imnrnwrl thpit"
IfiA
nv'ttrofA
imnncotKlo.

•••

Finally, the working population
has „ m recent: years,
in Adam
Smith
ith's
language,
increased
in
"skill," dexterity and judgment."

what

The

unionized

labor, has been to hasten the increase in wage rates, an increase
which

in their portfolios,

recent ythey hold

into hew school facilities.

to 'depreciation of the- dollars: which

programs

agriculture.

support

savings

different

ploy™e.nt elsewhere, employment^then;' obviously,;;an"investment open the floodgates of credit expaying
unionization,' w me enct,
c 1S more ^eml,nei'atlve ancl,' paying a fixed rate of return or pansion , would be no different,
m

now

One of the results of
a

the

70 million

some

trial workers-—are
in

way

dollar

despite

The

for mai!y • decadds. icarry.little; if anything, abouthave ".neglected tosmco sufficient
aiivcsors, generally;.
classrooms. put
multibiilion- done
the-

under

-m,V

TRADING MARKETS

omy

and Tv vide the greatest real values over
repair man, the oil burner man, the
years, then things begin, to
Generally, all of us engaged in
th® 011 buiner man,, the years, then things begin to
Abstract of
Jnroductivp aotivitv lilr^
wnvir
the electrician, the service station happen. As Mr. Canby BaKlerston,
As Mr. Canby Balderston,
«»r K5ST«£
productive activity like- our"work,
tion, Portland, Oregon.
and we like what we can get with ma.» me oanaressei, tne mam- Vice-Chairman of the Board of
*

to well.above $700 billion.,,. '

rtnflfl

1 iff In

population

location
location

There is

extraordinary

boniilation

Our

D. W. Michener

senses" were

keen

Change in Industries'3

tively fewer people in the work-'
ing-age group. Ten or 15 years
from now, the working popula¬

ture. different

Economists

since the War

of life now ex
tended, the population has much
larger proportions' of the very
young and the very old, with rela¬

Members; New York Stock
50

BROADWAY, NEW

Exchange

YORK 4,

N. Y.

Volume

Number 5664

186

The Commercial

ana Financial Chronicle

(683)

NEW ISSUES

$39,595,000

■

City of Chicago, Illinois
3%% and 4% Various
Principal and interest (to

from July 1, 1957 payable January 1 1958

accrue

Lot A and July 1, 1958 on Lot B and semi-annually thereafter on January 1 and July 1) payable at
the office of the Fiscal Agent of the City of Chicago in New York, N. Y.
Coupon bonds in denomination of $1,000, registerable as to principal only.

the office of the City Treasurer, Chicago, Illinois,

Interest

Legal investment, in
These

Purpose Bonds

or at

exempt from all present Federal Income Taxes

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

bonds, in the opinion of counsel, will constitute valid and legally.binding obligations of the City of Chicago, Illinois, payable from ad valorem taxes to
taxable
property within said City without limitation as to rate or amount.

be levied

all the

upon

LOTA
-

Due

$13,220,000

$12,475,000
Due

January 1, 4959 to 1971, inclusive

January 1, 1959 to 1976, inclusive

Dated December 1, 1952
I

■

•

$5,500,000 Electric Street Lighting

$3,650,000 Bridge Construction

$6,220,000 Superhighway
.Yield

Amount

Coupon

$1,265,000

31/2%

; 1,290,000

31/2 ;I960

Amount

31/2

1961

31/2

1962

1.290,000

31/2

1963

3.40

1,285,000

31/2

1964

100

1,285,0001,( 3!/2

•

Yield

Due

Dated July 1,1955
Due

Yield

3.70%
3.75

31/2%

1966

3.65%

1,100,000

4%
4 "

I960

3.00

565,000

1968
1969

31/2

1967

3.70

1,100,000

1961

3.15

475,000

1970

3.75

1962

3.30

365,000

3.75

1968

1,100,000

1971

.31/2 4

680,000

1963

3.40

265,000

1972

3.80

640,000

1964

3.50

265,000

1973

3.80

605,000

1965

3.55

265,000

1974

3.85

575,000

1966

3.60

765,000

1975

3.85

575,000

1967

3.65

760,000

1976

3.85

;

685,000

3^/2

': 1969

485,000

3V2

.1970

3.80

400,000

31/2

1971

$1,800,000

3.75

3.80

1965; 3.55

-.-;

v.,;

(accrued interest

Coupon

Amount

Yield

•

685,000

,.V.;

3.30

Due

Coupon

685,000

3.15

1,290,000

Coupon

$1,285,000

3.00

1,290,000.

Amount

2.85%'

1959

Dated January 1, 1954

$2,920,000 Sewer

$405,000 Central Municipal Heating Plant and System
-

Price

Due

Dated January 1, 1957

Dated January 1, 1954

$7,000,000 Subway

•

,>0

be added)

(accrued

$575,000

2.85%

1959

interest

3.70

added)

LOT B

$13,900,000
A.--,

J::-

•:

Due January 1, 1959 to 1973, inclusive

Dated July 1, 1957

^$5,000,000 Airport

i"-$500,000 Municipal Building
•:

•

f '

;

Coupon

Yield

Due

$1,400,000 Bridge and Viaduct

" ;

1959

3.00

1,125,000

1961

3.15

775,000

1962

3.30

775,000

1963

3.40

2.85%

I960

1,175,000

725,000 '

Coupon

Due

Yield

1969

3.70%

3.55

950,000

1970

3.75

950,000

1971

3.75

1967

3.60
3.65

950,000

1972

3.80

1968

3.70

700,000

1973

3.80

1965

1966

1,125,000

Amount

$950,000

3.50%

1964

625,000 w4
1,175,000

w..

Recreation

Yield

Due

825,000

•

Equipment

$3,000,000 Electric Street Lighting System

Coupon

Amount

y \

>1,075,000

$1,000,000 Median Strips Comprehensive Superhighway

Amount

$500,000 Fire Department

$2,000,000 Playground and

$500,000 Dock and Piers

(accrued interest to be added)

These bonds

offered

are

on a

when, as and if issued and received by us basis, subject to
Chapman and Cutler, Attorneys, Chicago, Illinois,

approval of legality by

Messrs.

and Trost Company

A. C.

of Chicago

Phelps, Fenn & Co.

Blyth & Co., Inc.

First of

Equitable Securities Corporation

Lynch, Pierce, Fenner & Beane

The First National Bank

Michigan Corporation

Harriman

Incorporated

Hornblower & Weeks

The Boatmen's National Bank

Allan Blair & Company

First of Iowa Corporation

Men Collins & Company

Clark, Dodge & Co.

Laidlaw & Co.

Laurence M. Marks & Co.

C. F. Childs and Company

Burns, Corbett & Pickard, Inc.

Incorporated

The First National Bank
of

Wm. J. Mericka & Co., Inc.

The Robinson-Humphrey Company, Inc.

Folger, Nolan, Fleming-W. B. Hibbs & Co., Inc.

Memphis

Stifel, Nicolaus & Company

Blunt Ellis & Simmons

William Blair & Company

Eldredge & Co. Geo. B. Gibbons & Company Hayden, Miller & Co,

Shearson, Hammill & Co.

Incorporated

Hannahs, Ballin & Lee

Trust Company of Georgia

Fahey, Clark & Co.

Field, Richards & Co.

E. F. Hutton & Company

McCormick & Co.

A. Webster Dougherty & Co.

Dempsey-Tegeler & Co.

Ginther & Company

toeorporate.

corporate.

Roosevelt & Cross

(

The Milwaukee Company

Schwabacher & Co.

Mullaney, Wells & Company

Stern Brothers & Co.

Watling, Lerchen & Co.
Augu* 9, 1957

Commerce Trust Company
Kansas City, Mo.

Kean, Taylor & Co.
Kean.

F. S. Moseley & Co.

•

Kansas City, Mo.

Hayden, Stone & Co.

Seattle-First National Bank

Barr Brothers & Co.

Bacon, Stevenson & Co.

Bache & Co.

Company

Chicago

City National Bank & Trust Co.

of St. Louis

Wood, Struthers & Co.

Incorporated

American National Bank and Trust

Ingen & Co. Inc.

W. H. Morton & Co.

Lee Higginson Corporation

The Illinois Company

L. F. Rothschild & Co.

Paine, Webber, Jackson & Curtis

(Incorporated)

B. J. Van

City National Bank and Trust Company of Chicago

Incorporated

John Nuveen & Co.

Company

The Philadelphia National Bank

Pressprich & Co.

Braun, Bosworth & Co.

A. G. Becker & Co.

Bacon, Whipple & Co.

Hemphill, Noyes & Co.

R. W.

of Portland, Oregon

R. H. Moulton &

Lazard Freres & Co.

Kidder, Peabody & Co.

C. J. Devine & Co.

Ripley & Co.

Mercantile Trust Company

Blair & Co.
Incorporated

Incorporated

Merrill

Halsey, Stuart & Co. Inc.

The Chase Manhattan Bank

Company

Incorporated

Salomon Bros. & Hutzler

Allyn and Company

The Northern Trust

Savings Bank

Chicago

Lehman Brothers

Smith, Barney & Co.

Harris Trust and

The First National Bank

Continental Illinois National Bank

Third National Bank
Nashville
in

The National City Bank
Cleveland
of

Chas. Incorporated & Co.
E. Weigold

Baker, Watts & Co.
J- C. Wheat & Co.

Wm. E. Pollock & Co., Inc.

Franlz Hutchinson & Co.

Rand & Co.

J. A. Overton & Co.

Advanced

Tools

Oil

Inc.

—

Circular

American Brake Shoe

Dealer-Broker Investment

120

Recommendations 1 Literature

Tex.

It is understood that the firms

'; p'

mentioned

will

he pleased

to send interested parties the following literature:

Navy;

artist's

....

Hanseatic* Corporation,

/>y'

Btfrnhani

;

120

Broadway, New York

,,:■

y u
f''

',/•:y';'

scot

Louisville

—

Data

.729

;tin

;

Railroad, R. E. Bisha, General
Agent, 908 West Broadway, Louisville, Ky.
Japanese Brewing Industry—Analysis .in stock
digest—Nomura
Securities Co., Ltd., 61 Broadway, New York
6, N. Y. Also
market

and

issue

—

Company of New York, Inc., ill Broadwaj

Hentz &
same

City Banks

are

suggested

lists of

•

stocks

for

varying

Over-the-counter Index-—Folder
showing an up-to-date
parison between the listed
industrial stocks used in the
.

Governor

.'■%.';

/yipg at Mark Hopkins Hotel
Oct. 10,

Roosevelt & Gourd, 37,

—

'.W

■

Douglas

Oil

National.

Company

Report

—

;

14y Omaha Club)./

The

—

Milwaukee Com-

;£x.

....

ipg-at Beverly *Hills Hbtel.

Nov. 3-6, 1957

v;. ,v

(Hot Springs, T#.)

National Security Traders Asso-

^ciation

Annual

Convention

the Homestead.
Dec, 1-6, 1957

;•

(Hollywood Beach.

Fla.)

Investment Bankers Association

wood Beach Hotel.

•

April 23-25, 1958

•

- -

•

(Houston, Tex.)

June 9-12, 1958 (Canada)
"

:
.

Investment Dealers' Association
of Canada annual/convention at

;Manoir/Richelieu, Murray Bay.
Quebec, v yy/::y-./■.
I

Oct.

29-Nov. .3, .'1953
Springs, Colo.*

(Colorado

National Security "Traders Asso¬

_y.

> :'V;yy.y;-.

Holly-

Aers Association annual meeting
at the Shamrock Hotel.

Corp.,. 1
Also available are re¬
Gas, Delhi Taylor Oil, and

y^r/u:/. .■'.yr:

at
*

4/Texas Group Investment Bank-

Securities

Annual-.Convention

Company—Analysis—Ferris & Co., First:
Building, Dallas 1, Tex.
f'-l''

Angelea,11

(Los

Association of Stock Exchanfe
Firms Board of Governors meet-

analy

Gas

Natural

10-11,: 1957

•

Production—Report—Western

bulletin

Rose

t,'yGalitl-yryiy ir;:',:

—

Street, New York, N. Y; ;

y v

Company, Russ Build-

(to be preceded
cocktail party, Oct. 9 at the

Reynolds Aluminum and the Company That Makes It—Illust rated brochure—Reynolds Metals
Company, 19 East 47th

12,

Banker#

frolic

^.Country Qlub

Exchange Place, Jersey City 2, N. J.

annual

and
field day at the Happy Hollow

Company Inc.

ports on Three States
Big Piney Oil & Gas.
•

Investment

Association

Arizona Public Service Co. and

Aircraft

Bank

Northwest

1957 (Omaha, Neb.)

Nebraska

Oct.

ciation

Annual' Convention

the Broadmoor.
.

Inc.—Analysis—Security Adjustment Cor- y

trporation, Id Court .Street, Brooklyn 1, N. Y.

Incororated—Analysis—Sanford

.ing, San Francisco 4, Calif.

Ea^t Michigan Street, Milwaukee 2, Wis. AlsO:.
is a| discussion of "Sleepers in Today's Market?",--

Roosevelt Raceway,

brochure^Cj^tten-.^

of A. J. Bayless Markets Inc.-,^

Mar-Tex

Free'

Amp

y Association of Stock Exchange
/ Firms Board of Governors meet-

Corp.—Analysis — Smith, Barney &
Co.* 20 Broad Street, New York 5, N. Y. y'yy;

Income—Bulletin on municipal bonds—Scharff
Jones, Incorporated, 219 Carondelet
Street, New Orleans

^12 8t
'

„

Oct; 7.-$» 1^57 (Sah J^anelsep, Ctl)

Louisiana Delta Offshore
com¬

Dow-

the

—

Railroad Shares—A
reappraisal—E. F. Hutton & Company, 61
Broadway, New York f>, N. Y.
Tax

*J
Investment Bankers Association

Levingston Shipbuilding Co.— Memorandum
Doyle, O'Con¬
nor & Co., 135 South
Lq Salle Street, Chicago 3, 111.

re¬

and the 35 over-the-counter industrial stocks
used_ m the National Quotation Bureau Averages, both as to
yield and market performance over
a
13-year period —
National Quotation
Bureau, Inc., 46 Front Street, New York
.•:>

.day.

Biltmore.

gregates for the first half of 1957. y

'Jones^ Averages

4, N* Y.

Sept. 25-27, 1957 (Santa Barbara,

■:

High Voltage Engineering Corp.—Memorandum—Goodbody &
Co., 115 Broadway, New York 6, N. Y. -

•

;

111

Green,vE;lUs..^

;

Analysis in "Monthly Review" — H.
Co., 72 Wall Street, New York 5, N. Y. Also in the

review

—

quirements.^

'J\ I

(Chicago

»r

Greyhound Corp.—Memorandum—Kidder, Pcabodv & Co., 17
Wall Street, New York 5, N. Y. Also available is a tabulation of Fire. Casualty Insurance Companies
preliminary* ag¬

Chips—Discussing growth pat¬
industry—Victor G. ParadiseParadise Securities
Company, 9477 Brighton Way, Beverly
Hills,. Calif.—$2 per copy.
'
1
York

■■

Ter.

Analysis^—Dean Witter & Co., 14
Wall Street, New York 5, N. Y. Also available is an analysis

Life Insurance Stocks Are
Gold
tern of the life insurance

New

Strong,; Cobb & Co.

Gladding, McBean & Co.

New York 7,

• -

Company—Analysis—First California Company,-Incorporated, 300 Montgomery
Street, San
Francisco 20, Calif.
;
v
•

Yamaichi Securities

V New York.

Co..
^

/Col, 209 South La Salle "Street, Chicago 4,
;
"" "
5
'
*'

memorandum

sis

Current information

»*-

Frideu-Calculating Machine

analysis of the current Japanese
business activity.
/ - ..■/ ;

Japanese Stocks

•* V

"i^B^SrfChicago
21st annual- field,

Parker
.Redpath,
Fifteenth Street, Northwest, Washington 5, D. C,

available

-a

same

!Con><~-Mpmorandum^Auchincloss,

Fisher

—

Industrial

iii the

* ,,V.at Whyfe^s Restaurant."

Eastern Industries—Bulletin — DeWitt Conklin Organization,
.120 Broadway# New York 5, N. Y. Also available is a bulle-

Nashville

and

(New York City)
'
^ Association: of Customers' Bro-

' '

panyy 207
served

Mountain States';

—

Cleveland ,13, Ohio,

C.nno Engineeriiig Corp. -r- Analysis
Waif .Street!"1 New York 5, N.. Y.

Co., Penob¬

area

Stiver

IB.

Dover

industrial sites in

Hotel.

Corp,—Memorandum-rHirsch &.C.O., 25 Brpad

dehj' Podesta

comparisons with particular refer-

Corp: ^.'Memorandum

v.CpntrplsACpmpaiiy ofjAmerlca-^Ana)^

"/;:y yy.-'7 7yyy

South

Sept. 12,1957

Obmlhercial Credit .Gp.^Memor^andum—A. M. Kiddet,";& ;Co.,
^$1 Wall^^Street.
York 5,^N. Y. " ' ^
1

30 Rail Equities.

cusses

*■.

....

conference

Building, Detroit 26, Mich.

Industrial

Francisco

Bar.;i Association brief-

aon^,

Coliiinhia -Brpad pasting System r^- Mejnor$nduan
And^rSdnv 61 "Broadway, New York 6, N.' Y.

;

-Investing for Inflation—Lists of suggested securities :n current
"Market Review"—Harris, XJpham &
Co., 120 Broadway,
New York 5, N. Y.; Also available are
analyses of Hertz
Corp., Corning Glass Works, and Black & Decker Manufac¬
turing Company.!-Current issue of the "Pocket Guide" disf

(San

Investors- Can Help Business
v v and Themselves"; ."Fifty
Monthly. Investment f*lan Favorifes"; "How're the Aver-

ence to Detrex Chemical Industry—Moreland &

1957

Hopkins

Christiana ^eenrities C'o.---Cireular- -Laird, ,-Bissell. & Meeds,
j2Q* Broadway* New iYork 5, N, Y.: Also available4 is^ tthP
''■" "
ration.
.;..analysis 'of General. Cable Corporation

;

per copy, $1 per year) -is the curissue of "The Exchange" containing articles; vOn"H6w

Chemical Industry—Some

yx//^'y.A,A

Field

•,

securities
laws & regulations at the Mark

•;

—

^vminal Tower>

•

yv,

T. & S» A.

Carlisle

.View*-*-

ages"; etc.

Federal

,:.«

;^3uStrcei^New-

•&&: Nl Y. Also available (100

;

Stern,.

abcuiit.iLvs;Coi;p;,;Denver Club;Uuilding, Denver 2, Colo.

•

Bowater Flaper.

Cash Dividends every three months up to 93 years—Booklet—
New York Stock Exchange, 11 Wall Street, -New York
5,

rent

York 4, N. Y.

»'

6-7,

ing

Monthly investment /letter — Burnham. and
Company* ;15,Broad:Street# New Yox^;V5^«,^^;^AlSQ:;!aYail-i;
'.'-'.able, is current Foreign Letter../ .//.
-

Signal.

..Baruch Kenilind .Oil

Stecks—^lOlst consecutive quarterly comparison of leadj ihg bantes : ahdvtruat companies aii the> United States--~New
N.

30 Broad Street, New

.'.Calif.)

Investment

Sept.

Oppenheimer & Co., 25 Broad

—

Bank

..'.York

Memorandum

Memorandum — First
7 rities Co. of Chicago, 134 South La Salle'Street, Chicago: 3,
memorandum 011 Federal/Sign
Also-aypjlaMe^ iCA .hicmo^dumt pn^^ Federaivsfgii^ and

Company, and Foote Mineral Company—Atomic Development Mutual Fund, Inc., Dept. C, 1033—30th Street, N. W.,
Washington 7, D. C.

—

Bank of America, N.

ponents; also mentions the large Swiss and Dutch holdings
of: the Fund's shares. Comments on High. Voltage Engineering
\

In
(..

Street, New York 4, N. *Y.

conception showing all 21 of the' atomic vessels now in
operation, under construction or planned; a table showing
-the- principle contractors for the ships and reactor com¬

Corp.

Baltimore & Ohio Railroad—Memorandum—Herzfeld &

Atomic Letter (No. 30 >—Features the Nuclear

EV E N TS

Electronics—Analysis—du Pont,

!■

Atlas

Thursday, August 15, 1957

COM I NG

Homscy & Com¬
pany. 31 Milk Street, Boston 9, Mass.
Also available is an
analysis of Chase Manhattan Bank of New York and Schcring Corp!'y'y/
y'/yy/y '777

Co.—Memorandum—Walston & Co., Inc.,

Broadway, New York 5, N. Y.

Amplienol

Carotbers & Company,

—

Inc., Mercantile Bank Building, Dallas 1,

■\

and Financial Chronicle

The Commercial

(684)

Also available

Yonkers Raceway, Inc.'.

Marie

Reid—Data—Van Alstyne, Noel &
Co., 52 Wall '
Street, New York 5. N. Y. Also in the same bulletin are data -

y '

Kin

Ark

Oil

Co.,

Electronics, Jnc.

For Financial
Institutions—

Burndy
'

Corporation,
'

•

and

American

Ed. Schuster &
.

Co. Inc.—Analysis—Loewi & Co!.
Incorporated, "
Mason, Street, Milwaukee 2, Wis. Also available is
report on Wisconsin-Power and Light Company.
v

225 East
a

•

'j:.

Shell

Beryllium—a

j.
i

*
..

strategic "Metal for the

Oil Company — Analysis —
Harris, Upham & Co., 120
Broadway, New York 5, N. Y. Also available'is an
analysis
of Robcrtshaw Fulton Controls
Company.
i •
'
/

Atomic Age—and Beyond"
•;

■

Soeony Mobil

Oil

•

Company,

& Co., 135 South La Salle

Inc.-WUialysis—Bacon, Whipple

Street, Chicago 3, 111.

-.A,'.

Stone
.

Webster, Inc.—Data—Joseph Faroll &
Co., 29 Broad¬
way, New York 6, N. Y.
Also available
are; data on Allis

Beryllium Corp.

Chalmers

ManufacturingCo.

.
.

.V..:

+...

mIPSE Y-TI:geuERS CI.
—!

——T"

Yiclad
,

■

•

Brush
■

Bought
i

Beryllium
•

—

Sold

Northwest Production

Wheeling. Steel Corporation—Progress
reporWMellott, Thornsen, Pitney, Rowan & Co., 29
Broadway, New York 6, N. Y."
!
World Wide Helicopters
Limited—Bulletin—Blair & Co., Incorporated, 20. Broad Street, New York
5, N, Y. Also avail- /*
able
is
an
analysis of General Reinsurance
Corporation.
Available through a special
arrangement with Blair and Co. •
are copies of Best's
Digest of Insurance Stocks at a bulk rate
of $11.09 per .cop3^—checks for number of
copies desired
should be made payable to Blair &
Co., Inc. and sent atten-" "

Three States Natural Gas

Delhi-Taylor Oil

■.
,

TRUSTER, SINGER
.:

Industries, Inc.—Report—Eisele &
King', Libaire, Stout
& Co., 50 Broadway, New York
4, N*. y. " *
' *

Members: New

York

& CO.

Security Dealers. Association

Trinity Place, New

•

...

York 6, N. Y.

...

-tion of

George.Geyer.:

Special Reports

Request

Western Securities Corp.

Yale & Towne Manufacturing
Co.—Data—Bache ;& Co., 36 Wall.
Street, New York 5, N,; Y. Also available are data on HarrisIntertype ^Corporation,
P.
Lorillard,} and
the
Canadian
Market.
:
'

Big Piney Oil & Gas

•

One

Exchange JPlace, Jersey City. *
Telephone BEnderswi 2-1000

Open-end

phone to N.Y, Ci

Volume

Number 5664

186

New

The Commercial and Financial Chronicle

(685)

Iifw*f

■I,

944,000,000
OF

LOS

Los

ANGELES

Angeles County, California

High School District

City School District
4%

Dated

Bonds, Election 1955, Series D

Due

September I, 1957

September I, 1*51-42, intl.

AMOUNTS, MATURITIES AND YIELDS
-

Principal and semi-annual interest
Los

of the fiscal agencies of Los Angeles County in New York, N, Y.

(Accrutd lnt«r«if t# b« addtd)

(March I and Seotember I) payable at the office of the Treasurer of Los Angeles County in

Angeles, California,

any

option of the holder. First Coupon (annual)

$34,000,000

Chicago, Illinois, at the

It*

payable September I, 1958. Coupon bonds in denomination of $1,000 registerable
only

Angeles City High Sehotl Dittriet

$10,000,000

to both principal and interest.

Angelas City School District

lot

Prlc* »•

High

In the

2.80%

1,360,000

400,000

1959

2.90

400,000

1960

400,000

1961

3.10

1,360,000

400,000

1962

3.20

1,360,000

400,000

1963

3.30

1,360,000

400,000

1964

3.40

1,360,000

400,000

1965

3.50

1,360,000

400,000

1966

3.60

1,360,000

400,000

1967

3.65

1,360,000

400,000

1968

3.65

1,360,000

for

0u»

1958

1,360,000

We believe these bonds

School

$400,000

,1,360,000

and State of California

School

$>,360,000

opinion of counsel, Interest payable by the Districts

400,000

1969

3.70

their bonds is exempt from all present Federal

upon

personal income taxes under existing statutes, regulations and court decisions.

are

legal investments in New York for trust funds and savings banks and in California

savings banks, subject to the legal limitations

legal investments in California for other funds which
savings banks, and

are

eligible

the amount of the bank's investment, and

upon

may

be invested in bonds which

likewise

are

legal investments for

are

security for deposits of public moneys in California.

Vl»ld

3.00

1,360,000

comprise separate issues of two distinct districts. The bonds of each issue in the opinion

constitute the

which

est, from ad valorem taxes

may

be levied without limitation as to rate or amount upon all of the taxable

3.70

1971

3.75

400,000

1972

3.75

400,000

1973

3.80

1,360,000

payable; both principal and inter¬

legal and binding obligations of the issuing district and are

1970

400,000

1,360,000

of counsel

400,000

1,360,000
1,360,000

These bonds

400,000

1974

3.80

400,000

1975

3.85

1,360,000

•

The above bonds

offered when,

are

Messrs.

O'Melveny & Myers, Attorneys, Los

The First National

The First Boston

& Co., Inc.

400,000

1977

3.90

thereof, in the issuing District.

1,360,000

400,000

1978

3.90

400,000

1979

3.90

400,000

1980

3.90

400,000

1981

3.90

1,360,000

400,000

1982

3.90

Angples, California.

Company

Stone & Webster Securities

•

Dick ft Merle-Smith

l/Kirperiferf

G. H Walker 4 Co.

•

A G. Edwards & Sons

Corporation

First of Michigan Corporation

Win. E. Pollock ft Co., Inc.

Reynolds ft Co.

Shearson, Hammill ft Co.

Baxter ft Company

Bacon, Whipple ft Co.

Gregory ft Sons

•

Trust Company of Georgia
- William Jiatr

ft Company
Hlrsch ft Co. ' E. F. Hutton ft Company

A. G. Becker ft Co.
Incerparated

Hayden, Stone ft Co. ;

Ira Haupt ft Co.

Ladenburg, Thalmann ft Co.

Hemphill, Noyes ft Co. .'i HornWower ft Weeks

Hallgarten ft Co.

Schoelikopt, Hutton ft Pomeroy, Inc.

Robert W. Baird & Co.'
'

Ernst & Company

Incorporated

Spencer Trask ft Co.

Schwabacher ft Co.

Initiated

Barr Brothers & Co.

Stone ft Youngberg *

L. F. Rothschild ft Co. • F. S. Smithers ft Co.
-

City National lank 4 Tiusl Co.

Cenlral Republic Company

•

(Incorporated)

~ .

Kansas City. Ma.

Ginther I Company
Laurence M. Marts t Ci.
Incarpernted
... . . . j
Thornton, Mohr ft Farish Wood, Struthers ft Co. H. E. Work ft Co. - J. C. Bradford ft Co.
Geo. B. Gibbons & Company

Field. Richards & Co.

Incerparated

Newark

if Seattle

tnierporetcd

Roosevelt ft Cross

National State Bank

National Bank of Commerce'

W. H. Morton ft Co.

Adams, McEnlee & Co., Inc.

Eldredge I Co.

,f Chktft

Equitable Securities Corporation

White, Weld & Co.

\ Mercantile Trust Company

Fidelity Union Trust Company

Bacon, Stevenson ft Co.

laiarparttai

Ctty National Bank & Trust Company '
New York Hanseatic

•

Chas. E. Weigold 4 Co.

htcarparafad

■

Carl M. Loeb, Rhoades ft Co.

Kean, Taylor ft Co.

Bache ft Co.

Francis I. duPont ft Co;

R. S. Dickson ft Company

Kidder, Peabedy ft Co.

•

John Nuveen ft Co.
(Incerperated)

F. S. Moseley ft Co.

Andrews ft Wells, Inc.

American Securities Corporation

lm*rp*rated

Stroud & Gomiany:

Estabrook ft Co.

Clark, Dodge ft Co.

•

Lee Higginson Corporation"

Paine, Webber, Jackson ft Curtis

„

William R. Staats & Co.

Newark

Laidlaw ft Co.

B. J. Van Ingen ft Co. Inc.

W. E. Hutton ft Co.

;

Incerparated

A. M. Kidder ft Co., Inc.

Coffin ft Burr

Alex. Brown ft Sons

Braun, Bosworth & Co.

J. Birth & Co.

buarporatad

Dean Witter ft Co.

Bear, Stearns ft Co.

Corporation

The Philadelphia National Bank

A. C. Allyn and Company

R. W. Pressprich & Co.

Salomon Bros. & Hutzler

Seattle-First National Bank

-mnlVrMttfumpmy at Chicago

The First National Bank
tertland, Orepen

Shields & Company

Merrill Lynch, Pierce, Fenner & Beane

Eastman Dillon, Union Securities & Co.

C. J. Devine & Co.

iPtoslps,Tenn & Co.

"Drexel & Co.

Anpths

R. ft. Moulton <& Company

Incorporated

Intorporoled

Glore, Forgan & Co.

<t»s

Anfelts

Blair & Co.

Lazard Freres & Co.

Weeden & Co.

Continental Ms National Bank

California Bank

American Tiusl Company

Security-First National Bank
Its

The Northern Trust

Harris Trust and Savings Bank

Halsey, Stuart ft Co. Inc.

Ripley & Co.

Incorporated

Newtfork/.

Chemical Com Exchange Bank

Harriman

Lehman Brothers

»'

■

Smith, Barney t Co.

Corporation

of legality by

Bankers Trust Company

City Bank

tl^few Turk

Guaranty TwSfCompany

3.85

1,360,000

and if issued and received by us and subject to approval

The Chase Manhattan Bank

Bank of America N.T. & S.A.

1976

may

all taxable personal property, except certain classes

amount upon

400,000

1,360,000

to rate

force,

1,360,000

property in the issuing District and which, under the laws now in

be levied without limitation

1,360,000

real

The Illinois Company - Kalman ft Company, Inc.
htorparaltd
Kenower, MacArthur ft Co.
Lawson, Levy ft Williams
Irving Lundborg ft Co.
McCormick ft Co.
McDonald ft Company
McDonnell ft Co.
Wm. J. Mericka ft Co., Inc. Northwestern National Bank - Rand ft Co.
Shuman, Agnew ft Co.
Stern Brothers ft Co.
Taylor and Company Third National Bank in Nashville Tripp ft Co., Inc. R. D. White ft Company Robert Winthrop ft Co. Wood, Gundy ft Co., Inc. Barcus, Kindred ft Company
The First National Bank
Blunt Ellis ft Simmons
* Breed ft Harrison, Inc.
A. Webster Dougherty ft Co. • Fahey, Clark ft Co.
Farwell, Chapman ft Co.
Federation Bank and Trust Co. The First Cleveland Corporation
Fosier ft Marshall
Granbery, Marache ft Co.
G.C.Haas ft Co.
Malvern Hill ft Company
Hooker ft Fay
Indianapolis Bond and Share Corporation Lyons ft Shalto•» The National City Bank Newhard, Cook ft Co.
liKefpwufed
if Cl9\t$fa/nl

Burns, Corbett ft Pickard, Inc.

Julien Collins ft Company

Commerce Trust Me.
Company
City,
Kansas

Dominick ft Dominick

Goodbody ft Co.

Hayden, Miller ft Co.

Hilt Richards ft Co.

at Memphis

IniorporoteJ

Sbanihan, Harris ft Company
Stubbs, Smith ft Lombardo, inc.
Sutro Bros, ft Co.
Talmage ft Co.
Thomas ft Company
Tilney and Company Van Alstyne, Noel ft Co. Winslow, Cohu ft Stetson Harold E. Wood ft Company Zalmer and Company
Blake ft Co.
Cruttenden, Podesta ft Co.
Shelby Cullom Davis ft Co.
Dempsey-Tegeler ft Co. Dittmar ft Company, Inc. First National Bank The First National Bank Folger, Nolan, Fleming-W. B. Hibbs ft Co., Inc.
franlz Hutchinson A Co.
Glickenhaus 4 Lembo
J. A. Hogle 4 Co. McDonald-Moore 4 Co. D. A. Pincus 4 Co. Rodman 4 Renshaw Seasongood 4Major Tomrsend, Dabney and Tyson Wachovia Bank and Trait Company
Arthur L. Wright 4 Co. Inc.
E. Ray Allen & Company, Inc.
The Continental Bank and Trust Company
Doll 4 Isphording, Inc.
The First ol Arizona Company
Hannahs, Baffin 4 Lee
W. L Lyons 4 Co.
Hutchinson ft Co.
Newburger, Loeb ft Co.
J. A. Overton ft Co.
Pierce, Carrison. Wulbern, Inc. Piper, Jaffray ft Hopwood Soden Investment Company
Wagenseller ft Durst, Inc. Elkins, Morris, Stokes ft Co.
Provident Savings

Bank ft Trust Company

Schatfer, Necker ft Co.

Ramho, Close ft Kerner

John Small ft Co., Inc.

Fred D.

Stern, Frank, Meyer ft Fox

Salt lakt City,

ft Jfl/iif Fuvl

Minneapoln

Stern, Lauer ft Co.

Utah

McMaster

The Weil, Roth ft

Irving Co.

C. N. White ft Co.

Ellis ft Co.
A

August 14, 1957

circular relating to these

bonds may be obtained from any

of the above underwriters.

Wutff, Hansen ft Ci.

Chronicle

Commercial and Financial

The

Thursday, August

15, 1957

(686)

High

the

Perspectives and Problems of .
Expanding Southern Growth
DR. FRANK SODAY*

Vice-President, Research and Development, Chemstrand Corp.
Decatur, Ala.

and

annual

Mr. Atwater

* :

opportunity to buyers able to examine
beyond

reasons

affording

exceptionally high return.

Each

these

buyers.

the

nation's

brokerage

largest

of measurement
apply, the growth

every means

wishes

this number will be

indicate that

equalled

exceeded in 1957. The

total value of

products turned out
by southern plants last year was
5% times greater than in 1939,
well ahead of the corresponding
increase for the nation

whole.

as a

The South led the country in ex-

pansion
lied

in 3

Since

groups,

lagged only in 4.

1946,

industrial

and

the

has

area
..

sur.

passed_the nation in the torowth of
such

diverse

items

economic

construction, insurance, gross personal income, mineral production,
iDeef
and
chicken
production,
wholesale and retail sales, electric

production, number of inand telephones in
use.
Clearly the last half of the
present century belongs to the
South, and its rate of growth and
standard of living will be limited
only by the vision and ability of

XDOwer

-1——x..

—1

---1

dustrial plants

its industrial leaders.
'

Praises

•

Liberal

For the

manufacture, which
has doubled in the area during the

Machinery

increased its procapacity. In the well established textile industry, which
—
has added a million new spindles
during recent years while the nalional
total
has
declined,
the
io

continued

improve

today are to

its

the

merging

lien

Hiwrsifieatinn

a^rinil-

,
tuie mntirmed with a rorresnond"
continued, with a coirespond-

to the

and the

Y consen^
egulatory
ieSuldtoi.y agencies.
agencies,

firprn

riuDert

Co., founded in
Francisco, is the larg-

-has

into its

come

yirtues of soimd

The

own

forest

man-

bave been
well that the region

preached so
now has 65%
farm acreage in

agement

has

the leadership

taken

South

in the

•

industry, it produces

cago and offices
western cities.
will

ex-

unusually low rates for

and concentrated buying by in¬

money

stitutions and trustees.

My study has indicated that interest rates and quality con¬
sidered the average value of these bonds has been about 4.30%
yield or say 85 and that after excessive swings, the price tends
return

that level.

■V'-'

%•'

A similar

add

Dean

story could be told about Lake Shore & Michigan
Southern 3%s which cover, the New York Gentral' main line from

Buffalo

Witter

offices maintained

the

Co.

Again in 1942 we find the-bonds selling as low as 67 only to
toJ31
eaCm !lltcPssl4Ye year 1943—87 /2, 1944—
Wv
"Ti ?'
114/8. This was the climax of several years
of

The merging of the two oreani-

zations

oer

management pdlci tne i\ew xoik vemuu siocKnoicteis ^opci snaie.

ten other mid-

months maturity commanded 7%>% and the Vandrrbilt

{

r t

manau-ement paid the New York Central stockholders S5

It maintains headquarters in Chi-

was not as great as could be obtained today
due to the fact
that maturity is 37 years nearer. In 1920 the country was suffering
trom excess accumulation of inventories, commercial paper of

Central Republic Company is
one
of the largest investment \
banking firms in the middle west.-

af long lagt

■

time

est ^brokerage-investment house of
-New Y k
ag
1
1
terms o£ number of employees
and services offered. It maintains
32 offices throughout the country,
is a member of six stock
changes and 15 commodity

pledge of the several valuable parcels
in New York City.
In 1920 these bonds sold at 61 ^4, the low¬
price ever recorded, but the yield at that

real estate owned

Atwaiei

est

fhi

eco^omy.

;

Jt.

Witter &

Dean

1924 in San

changes

1,420 miles of railroad including

line from
New York to Buffalo,
leasehold interest in the New York & Harlem

-ng improvement in the health of

important segment of southAnd southern pine

the

main

the

approval of stockholders of Central Republic Company and

covering each oi

since they were first offered at
The security is ample, being a first

years

98 in 1897.

11,000 miles of leased wires and,

leading position.
Th^

price chart of New York

Central & Hudson River 3%s
the. 60

Consummation

kept

have

■'

Central's First Mortgage

New York

of the two firms is subjact to the

years,

—

South

offerings.

this

Chicago.

bond

For many years following, the date of issue

•

considered

was

the v"best

railroad

bond"

sold

and

Central/accordingly.
in^i?tie?S1Ilg.
than half of the wood pulp raanu* Republic in addition to the staffs
^ v When the ^Missouri Pacific was reorganized there was one
vToS factured in the country, and is- in Chicago and" New York, thus
divisional 'issue .that might have .been entitled.cash payment
the largest producer of chemical bringing under one management-in full but to conserve resources, of a new enterorise these 4V4%
th#f hnXif^man w wood pulp in the world.
' ,
a total of 42 offices in as many v Collateral Trust Bonds.due, 1976 were issued. Foria long time they

SnjL

past

fore, finding a home in the hands of buyers
who
are
not too
busy to look at modest

nounced

dollars worth was either planned
or under construction. Light metal
production was substantially increased, and iron and steel capaeity was enlarged.

the country. As a result, the

liberals ot

billion

additional

of all of the tree

Business

Executives
p

and

ductive

total,

effect of a
absence of block
It is well to point out that the lower

prices of the moment are made on relatively
small amounts. Many good bonds are, there¬

cilities of Dean Witter & Co., one

manufacturing,
synthetic
fiber and investment banking firms,
production,
electronics,
aircraft and Central
Republic Company,
of industry in the South is con- and guided missiles, and atomic rnvestwenY* firm*'wifh headauaftinuing at an accelerated rate, energy. During 1956, the chemical f
•
phicaao has been reached
Some 1,060 major manufacturing industry
completed $1.1
billion b
tbe partners of the Witter orplants were completed in the area worth of new plants in the South,
gan.ization and the directors of f
in
1956, and preliminary figures equivalent to 56% of the nations gentral
RepubliCi it has been anBy

one

issues has felt the

first .mortgage

rise in interest rates and the

111.—An agreement
consolidate the staffs and fa¬

CHICAGO,
to

small offerings.

the control of the investor the bonds
in the accompanying table are today obtainable at prices

shown

Republic to Merge

people.

young

describes issues rendered unusually attractive by
of interest rise and thin market; giving

effect

combined

For

Dean Witter & Gentral

by attracting small sub-contract business hrms, and

properly educating its

Stock Exchange

Members New York

billion.

lems yet to be solved, such as: tempting surplus labor to
remain

By HUBERT F. ATWATER
Wood, Walker & Co., New York City

South .of

the

loss

represents

this

non-graduate,

and ability of its industrial leaders." Praises liberal and com¬
munity-minded executive leadership and outlines several prob-

Available at Bargain Prices

college graduate earns $100,000
during his lifetime than the

[and its progress] will be limited only by the vision

Railroad Bonds

First Mortgage

above

"the last half of the present century belongs to the

avers

South

Dr. Soday describes the South's accelerated rate of industrial 1
growth and the sweeping advance in the standard of living,

School graduate having

130 (Ph.D. level)y ;•
graduate from college. For every:'1/>.
one
of
the
78,000 graduates r of -t
southern colleges and universities
each
year,
there is another of
equal intellectual ability who did^.r
not attend college. As the annual
an

paper

ten

midwest

cities

2LS
feryative, theresponsible for has
businessman the
been mainly

Solving

dynamic

with
wiin

forward

drive

the

into human progress, he has been
the prime mover in the sweeping
advance in the

standard of living

of the region and has

assisted the
people of the region as a whole
in attaining those goals which the
great religious and moral leaders
have long envisaged. Once living
in

splendid
P

isolation

the

one-third

time

his

com"
com-

munity affairs.
Business

today looks upon
through the eyes of the

work

community
and
caretully
considers the total welfare of the area
ln

making its decisions. Instead oi

resisting
a

change,

business

creative role m

stead

plays

directing it. In-

building a

fence around

lts markets and corporate position.

coimtry. To
fbjs ffow 0f people will require the creation of 500,000 new
1obs each year for at least the
nexf fo years. This is the great
chalienge which industry is facin^

s^op

in the

lion

yearly

for

into

research

new processes

the

benefit

nessman

has

and products

all.

become,

The

busi¬

all.

chartering
chaitering
pm

and

Maryland.' And°the

Sout

to improve the commanding position it has taken in many

worthy

industries,
expansions

with
notein
chemical

basis of maturity

1976

there

reason

to expect retirement

;

A special meeting of the Central
Republic stockholders will be held
the latter part of August, and if
appioved, the consolidated operations will start as-of Sept. 1..
Witter,

founder

the

% Lehigh Valley has.retired one-half its mortgage'debt in the
eight or nine years. / The 4y2s 1974 are a first lien on the
/lines in New York including the mileage from Pennsylvania State
last

Line to Buffalo. The
Line to Buffalo. The Lehigh Valley Terminal Ry. 5s
ticularly important because they cover the line from
thev

the

Hudson

City and

River

including

the

1979 are par
par¬
So. Plainfield
Plainfiel

original terminals in Jersey

connection with the Pennsylvania

RR. affording pas-

has 40% of its
produced for
by 0^ber companies. Some

Central Republic Comnanv was
originally an investment affiliate
of Central Republic Bank and

es-

ampie> Lockheed
major

components

use

million

c,02q

worth

awarded

are

Lrms

each

contracts

year

11,000

determined

states.

. .

Trust Company, Chicago

incorporated
ization

June

and

Newark.

Recent reports' indicate that Pennroad, already heavily

reorganization in 1944.
Income

Bonds"

the

Title

Lake Shore &

this contract business would create

when he became Chairman of the

seCure

host of

new

job opportunities in

came

Board, and James M. Pigott

Missouri

Education

Needs

25% of the nation's industry, most

°atm'e

hiehlv

Pacific

R. RR. 312

was

technical

1997__

41976-_1____
4%

Yield t"

Maturity

82%

62%

5.55

91,

103%;

1974____

6.65

76
'

Lehigh Valley Terminal Ry. 5

Forms Hagaman
is one

nearly

,\ybjnb

Michigan So. 3Y2 1997__

Minne. St. P. & S. S. Marie 4%

problem

q|'

& H.

Lehigh Valley of N. Yr.

elected President.

the South.

60% oi

1'rice

High

President, in which capacitv
served until December, 1954,

encourage

technically; described as
In 1956 the Soo

are

Recent

separate organ1931. In De-

25,

cember, 1933, Newton P. Frye be¬

ment of small business

The bonds

interest is paid .annually.

principal amount oi the first mortgage.

the establishenterprises
greater proportion of

effold

and

reported net earnings available for fixed charges equal to

was

N. Y. Central

1979__
1971_

6.50

100%
90

81%

6.60

Securities

„r.

JACKSON, Miss. — Robert L.
Hagaman, Jr. is engaging in a

With First Southern

securities business from offices

(Special to The Financial Chronicle)

H. J. Hochman Opens
HOUSTON

but
wv.v

Texas

Herman

engineers.

found

Some

way
this

double

must

1828 Devine Street under the firm

ATLANTA, Ga.—Joseph H. Al-

Hagaman Securities

len has become affiliated with The

rities business from offices in

First Southern

Corporation,Peachde

Company,

scholastic

gtSw

L
•

+u-

Tw° WiA 1 1 B' H,',liard
(special to the financial chrontclf.

Ponce

Leon.

officer

engaging in

secu-

the

He was forme*1)
of Kay & Co.

J. C. Wheat

Joins J, J. B. Hilliard

Branch

Tofforcnn

ROANOKE,

(Special to The Financial Chronicle)

young

Hochman

LOUISVILLE, Ky. — T. Ballard
To einphasize this economic loss Morton, Jr. has become connected
*° ^
South, orm needs only to with J. J. B. Hilliard & Son, 419
mi,".

West, Building.

tree

novuiv,

suffered
suffered

Francisco, Los Angeles, Chicago
and New York.

Southlvidld^Market ReV(Srchy Confeirei^ inability
Miami
1957.

7-^

ex-

consider the $8 billion annual loss

Beach, Fia., July 27,

with the'market

parts to the larger industries
tablishing in the area. As an

Jcon-

tinued

growth

ull^rsto°d'

declined

int~ in Lehigh Valley, is adding.to its holdings.
1 So° Line first mortgage 4.%s are the product of that road's

thjs
wus

tQ
iu

lufsinltsYnr! of .the country's scientists^ and

of new business cornew
ations by 7/c in 1956. Florida

i.^

ters in San '"ed^San^"
SuarteS Francisco. Division

But the greatest

leadership
The
South

now

is. TI e ietuin on the Londs cannot be fairly considered on the

•

Dean

sold above 100 but have

of contract manufacturers supply-

solution
»uiunun

of education. The South has

Growth

„

apparent

ever

Fhe evidence oi such

senger trains access to the.Pennsylvania stations in. New York and

the New South.
of

...

witter company, continues to be.
ds seP101* partner v/ith headquar-

possible
pussiuie

increasing degree, the prophet of

Record

The entire staff of CentralDean
Reexpected to .loin

pab]lc

area>

Qne
wne

pusmess is pouring some $8 biicreate

splendid
spienciui

mis
this

oi
of

problem is to increase the number

on
oil

cities throughout the country*

Problems

other'seciions oTthe

average

top executive today spends

Remaining

OWENSBORO,

Ky.

—

John

Va.—J.

& Company have opened a

Wheat
branch

West Teffeison Stieet, iiiemoers oi i^uenermous is now. witn J. j. B. omce in the Mountain Trust
members of Quertermous is now. with J. J. B. office
to properly educate its the New YTork and Midwest Stock Hilliard
& Son, 417 Masonic Building under the managemen

hv
by

the
the

people.

area

Less

due
due

than

to
to

half

its
its

Exchanges.

Temple.

•

of William M. Meredith.

Number 5664

186

Volume

The Commercial and Financial Chronicle

caused by the

Developed Before the

Issues

•'

against

a limited supply of goods
services, with demand, in this

and

particularly

case,

By HON. WALLACE F. BENNETT*

■

u. S. Senator from Utah

;

(la)

There

developed during ' the
phase of the Senate Finance Committee Hearings, sees
fundamental disagreement in basic economic philosophy,

first
as

the

economics, and
theories,

been ;i
'

price
and

side the Treasury's general acceptance of "classic"

one

some

the other

distrustful of free markets.
the following:

certain

•

and

Discusses %major: issues, including

flation.

■

i: In the 51. days that have passed

has

these

data

been
we

considerably

cult

an¬

(6)

take

in¬

that

cor¬

rect policy in combatting inflation
is to provide for more rapid in-

plot between the doctors and the

cre«ses in the money supply than

druggists (the banks) to make ex->are- currently permitted in order
18, there have been hundreds of tra profits out of our illness—and to secure substantial increases in
points of contention—but.most of that we can be cured at less cost " outnut (for example, in housing),

since these hearings began on June

them
i

are

There

those who want the

are

doc-".^nd that these

output

increases

would

thorough', r e
vie w >pf. ythe

depress prices. The re-'
dictate the treatment. They "say sr»onse is that there is little posthat the treatment has been going sibility of output increasing at a

transcript, J ,*

have noted

hasn't cured the disease. They also

r.By al mmmmmmmmm

n o

tor fired—or at least they , want to

that I consider.
worth

Mf*"1-

record-

10 in the

ing,

field of

for

some

months

point to the times when the doctors permitted a little stimulation
and the disease didn't

mone-;..;gJL

now—and

immediately

faster

because there is virtually no unemployment above the frictional
lcvel- Furthermore, although it is

this argument they call
stimulant, saying that by

debt manage-

basis

;

ment

policies,

for

and

three of

general

e c o

nomic
cance.

HHIHuHHHHI
Wallace

Bennett

observations.

advocate

be able to take
thus develop

They
the

not

are

effect

conour

secretary

Ml.

side—the Treasury's—is

one

general acceptance of the validity
of what might be called "classic"
economics. On the other is a variety of unorthodox economic
theories. Some (fi these are hangovers

the economic

from

experi-

amounts

series

tabular material, relequoations and all the rest of
it. The time and effort which miist
data,

mentatipn of the '30's. Some are —but I have been even more imcalculated do give special benefits pressed with the answers that you
to certain -groups.' Some indicate and
Secretary
Humphrey have

preoccupation with depression— provided. It is clear to me that
the past—by a general pro- some are seeking nothing less than
gram of making all economic com- a complete over-turn of the sound
parisons within the past 25 years, principles which have been develSome indicate an unwillingness to oped over the course of long and
a

and

-trust

free

markets

prod uce

hard experience.

prosperity. In one way or another
and /from
proven

many

angles,;, the time

under attack,

/ y, ,

been

have

colleagues

thorough in their questioning that
f
*
wnilm be repetitious for

Thus far our chief concern
been with inflation—its cause

•,

know

exists

the

new

whether it is

and different form of

the dis-

issue

the

depression

other

side

power

it does

However,

should

issues

like
as

have

although

the

Fed¬
that

is not unlimited; its policies

directed by a large number

find the wise judg¬
I believe was ex¬

rate when

and

that

monetary

have

There

that

indications

been

members

some

the

com¬

1920's was not mittee are considering legislation
which would have the effect of
so much incorrect as poorly timed.
independence of
(7) The next two issues in my destroying the
informal tabulation relate to the the Federal Reserve by requiring
of

causes

that it center its activities

higher interest.

It has
higher porting

sup¬

the prices of U. S. Gov¬
ernment obligations.
This would
because the Federal Reserve has
increased its rediscount rate 011 a place the Federal Reserve in a
subordinate position to the Treas¬
number of occasions since
1953.
stated

been

that

rates

are

therefore,
subject
to
the
if I interpret ury,
pressures
which
must
correctly, changes in the political
rediscount rate have
followed— necessarily be present.
On

other hand,

the

the data

not

led—changes

rate.

the

interest
Debt Management

Further, Federal Reserve in¬

fluence

ercised

primarily

control

(3)

interest

over

(1) Turning now to the field of
debt management, it seems to me
that here three basic issues have

ex¬

through

its

the volume of money.

over

rates

which,

charge

been

The first relates

developed.

to the

maturity distribution of the

debt, and is based

public

term

such

securities
sales

deflationary,

are

should

attempted

now, even

seem

since

securities

now

rates.

There is

lor

the

Treasury

have to pay excessive

would

long-term

simply
bonds

market
large

amounts at rates which the Treas¬

is permitted by law to pay.

ury

The second issue arises out
charge that the Treasury
deliberately put itself at the

(2)

the

of
has

mercy

influences.

of the market in floating its
But the alternative, as

securities.

(9)

The ninth and tenth issues
tabulated

have

to the effectiveness of higher iur

it, to acceptance of
competitive rate bv the Treas¬

ury

the

understand

the

relate

them

Federal Reserve.
If I understood your testimony of
several days
ago
(page 1604 of
directly

is to maintain artificially low

Continued

page

THE STAMFORD TRUST COMPANY

forest rates, in combatting infla-

tion; It is claimed that higher
list briefly the "interest cannot be a deterrent to
understood them capital investment since the vol-

Office

Main

—

Main

300

Street

Stamford, Conn.

Resources Over $72,500,000

HAROLD RIDER, President
Serves the Community

Stamford—Darien—Noroton

naturM^incre&se in;strength—even otber members of ,the Committeie-dilates demand for higher wa°es.
though-Jt means postponing some and to the public.- ':r '; .V " - - ;
/ The other side of the issue is that
things we4.would rlike to enjoy
w'. ••.
the. deflationary effect of higher
,

now.;r

Monetary Policy

.v•...

Resentment of this program has

developed' in'

number of forms.

Some apparently believe that inflation isn't a disease after all—

but
our

desirable,

rate of

cure

way

y1 with respect t.o ::the issues
the'field of monetary ooUcy

- or

theory, the first is
of the current infla-

monetary
nature

increase

Tt is charged t^at these

price

growth. Some say the

-worse

the

than

increases have behind them nnrie
disease." 0y the elements of a classic infla-

Others say that the cost in higher- lion but, instead, are caused by
interest rates is too high. A few «ti*ht money"
anH
maninulated
have suggested that this is all a nr,ces in semi-monopnlistV indus~~CT

„

tries
h„

Ai's. 9,

1957.

interest

far

important

is.

terest

nart

ference
•

after

rates
.

verv

costs.

most
in

all.

anH

price

answer

increases

the dif¬
devel-

due

(0) The next issue an=es out of
the charge th=»t current mnnetarv

smell hnsihurt ler°e

basically business. Although it can sately
\

Banks

from

and

securities

Government

Securities

Other

Bonds

Loans

and Discounts

Banking
Other

House,

Real

Other

—

...

Furniture and

Estate

—

$ 7,410,838.54
18,678,892.84
6,836,149.60
38,228,342.26

1,278,485.17

Equipment

86,875.00
58,857.73

—

Assets

l--

Resources

Total

$72,578,441.14

LIABILITIES
Capital
:

Undivided

Profits-

Reserves

Other

——

$1,775,000.00
2,925,000.00

-——

903,743.52

—

Surplus

■.

—

Liabilities

...

?pod is even less significant,

the

are

small

hss

that

Tr^a^urv policy is hurting onlv
given to this is that current ness: that it does not
The

RESOURCES
and

Cash

its inflationary effect, par-

;;|'cular.lv whei]
ls re^^lPre<0
that higher rates reflect tightness
in the availabilitv of money.
In¬

with branch offices at:

Heights—Old Greenwich—Riverside

Condition As of June 28, 1957

Statement of

are;"trying tb slow us. down to a • have been developed, and-perhaps ^higher interest is inflationary berate .that can be sustained by our; it will be of ^assistance to^cause it enters into costs and stim-

the

claim, that because sales of longer

Capital Stock, Surplus, Undivided Profits and Reserves Over $5,780,000

increases in

taken into considera¬

are

finally,
policy during the

port bond prices without adding

study of its cause or ;c a us e s.^charges.-and
the
answers A be;
Whether it is "a flare-up of a form clearly d ef in e d.; ' Accordingly.;
of the disease that has been dor- raf.ber
than to
auestion ; you/J.
mant at times—or

the

to me to conditions not comparable to the
•form of a world-wide; epidemic, be particularly important that the present;
We have not yet completed our issues • developed
out
of -the -7. (8) Tb« r^xt two issues relate
We

cure.

that

eral Reserve has great power,

of making large purchases of <*overnment bonds and. therefore, est rates. I believe that both Sec¬
without being inflationary. On
retary Humphrey and you have
the other hand, the Treasury has
emphasized that the Treasury has
made it clear to me that the F^d- never
attempted to increase in¬
eral Reserve cannot start a policv terest rates
through its operations,
.of negging bond prices without, but has
accepted the market rate.
at the same time, relinauishin« its
Treasury operations, if I under¬
control over monetary policies,
stand you correctly, are a factor
The data which purport to show
in the market but there are, in
-that the Federal Reserve can sup- addition, many other factors and

resulted

1929-33.

tion,

money

.considerably to bank reserves
cov^
of trough necessary , purchases of
has still more questions, the ground government securities are tak^n
and which has already been traveled.^from ^q.refulJv selected years with

principles of economics are

un¬

though Federal Reserve
policy has made this more difficult
•than it need be. The answer given
charge that it has deliberately is that the time is not
appropriate
used that power to increase inter¬
for the flotation of longer term

vant

surely have gone into the preparation of the charges is impressive

almost

has

Reserve

ment—is

The second major issue in opinion, is entirely unsupported
the field of monetary policv arises has
preated my eighth issue. This
out.of the claim that the Federal
begins with the claim that the
Reserve System can supoort Drices
Treasury has the power to set the
of government bonds, thereby regeneral
level
of
interest
rates
during the interest burden on the
through the rates it selects for its
national debt and interest rates own
securities; and follows with
generally, , without the necessity the

charges,

the

f. (2)

carefully organized and buttressed
with

the

Federal

issue is devel¬
claim that the

tenth

out

men) from all areas and represent¬
ing diverse economic backgrounds.
pressed in your (Mr. Burgess') tes¬
In the final analysis, the Federal
timony—that the primary value;
Reserve is an agent of the Con¬
of current monetary policy is in
gress, which can and should exer¬
preventing excesses of the type
cise
its
authority whenever
which eventually can lead to de¬
appropriate. I might observe that
pression; and that the greater the the whole
question of the inde¬
excess—the deeper the depression.
pendence of the Federal Reserve
Also, you have noted that the
System seems to be developing
money supply is not growing at
rapidly.
'

combat inflation.. Are
^ then to believe as we must,
following this logic—that the way
to halt a severe decline in nr,ces
1S
contiact the money supply,

the

increasing

The

(10)
oped

cause a depression,
similar policies during the

ment—which

considered in

healthy stability of the dollar.

about

and

large
devel¬

has

are

output in some individual sector of the economy,

[W. Randolph
Burgess], as I have listened ,;to
Hie More Fundamental Points ot
the questions
during our many
Disagreement
sessions, both with you and with
.Behind these conflicts lie some Secretary Humphrev, I have been
more
fundamental disagreements impressed by the fact that both
in basic economic philosophy. On 0f you have had to deal with what
.

^cr^ases in

economic heart—the essential and

muscle;

cerned

them

separately, I
should like to make some general
discuss

exercise

issue

agree-,

this

a situation of this
sort. I said earlier that I find
it- difficult to take the issue seriously because I cannot comprebend how anyone can honestly

means we may

But be-

fore

this

signifi-

presumably without regard to the
effect on the price level.

not
hurt

rates, will

1920's

like bousing, it is an increase in
the entire economy which must be

tary policy,
three touching

did
was

than

out of the charge that cur¬
limited power in its field and is
monetary policy, which is al- controlled
by only a few men who
1 e g e d 1 y
providing insufficient
are, in effect, independent of any
growth in the money supply and
supervision. The other side of the
is characterized by higher inter--:
issue—with which I am in

possible to conceive of substantial

up and therefore assume that
there is no relationship between
the disease and the cure. On tub

[

The sixth

rate than is already the too slow
case, regardless of excess capacity, velocity

show

seriously

provide all of the funds de¬
by a growing economy,

manded

rent

seriously—

claim

the

par¬

oped

particularly diffi-

submitted,

were

est

out

reason

business.

for

feel the pinch but the

may

which

any

(lb) The other correlative issue- just

arises

marginal

ticularly after analysis,
that small business

now?

all

prove

policies had
there would

adopted,

y—one which is

depression, T the Reserve and; price stability, the

debt management, reduction in housing starts,
corporate price policies, and the interest rate future.

This

the fact that

and
been

have

nature of the current

Treasury's

been

not

inflation, Reserve support
of gdyerttment bond prices, interestTate rise related to infla¬
tion

half.

labor;

and

groups,

nesses

re¬

have relatively full utilization of
some- basic resources, particularly

mentation^^favoring special benefits

It is claimed that

monetary policy has not
successful
in
preventing
rises during the last year

swered

variety of unorthodox economic
hangover from the Nineteen Thirties' experi¬

the

policy will ad¬ the transcript) the primary func¬

busi¬ tion of the Federal Reserve is to
a rvolume
of
money
to as¬ maintain
sume
that
all
marginal
busi¬ which will assure price stability
nesses
are
small business.
It
is and sound economic growth.
But
possible, as Secretary Humphrey this has been challenged with the
admitted, that many small busi¬ claim that the primary function is
affect

there is

nesses,

correlative

two

are

be said that such

versely

strictive

Bennett, outlining the issues

strong

field.

capita] goods
issues here.

Senator

factors which

same

must operate during every inflation: increased demand pressing

£•

(687)

Deposits

66,4/4,234.77

...

Tof*I Liabilities
Trust

$ 5,603,743.52
' II
323,138.10

Funds Which Are Kept
the Assets of the Company-

Department

Apart From

—-

MEMBER

FEDPPAL

Separate

"*TC,,T~ *

and

$72,578,441.14
.

oiono

$o3,321,348.09

Thursday, August 15,

1957

(688)

-^peering show .the,same;steep rate,
/ oX growth.
And yet ryou are> all;
: familiar, J*am -sure, with the .^rell;
V :: publicized shortage of technical-;
ly-trained college graduates which
;
still faces us today.
<
fr
■
;

Research Is Big: Business
-:;V.

By DR. R. C. SWAIN*

,•

Swain, enthusing over the future of industrial research,
and terming it Big Business, identifies some of the specific
challenges it presents to business management. Maintains
more progress has been* made during past two decades than
in all previous history, and future frontiers defying imagination
than 100 years ago,

A little more

great rewards in the gold
tnat lay along the American river,
And rewards there have been, beof

ise

That was a time
still seek new
land and new opportunities.
So
long as land existed, there were
no problems of dwindling natural
resources,, declining land fertility,
of the pioneers.

could

man

nature of things characteristic of

its

reached

development when Newton
contributed the concepts of obserfull

vation

and

experiment,

this

basis, hypotheses could be devel-

over-population.

oped and then checked by experi' ment.
Thus evolved a self sufThe New. Frontier
ficient system of science that no
Today in America that frontier longer depended upon theology
is
gone.
But we have another and metaphysics. But this scienfrontier—not in virgin land, but tifie outlook needed a scientific
01*

„

scientific laboratories.

our

forward

look

method.

period of

to a

1900,and

the National Bureau

The emergence of a scientific of Standards in 1901. In 1920 there
outlook during the Renaissance was a. total of 220 such laboramarked a clear departure from tories and by 1940 the figure had

medievalists.

.In

equivalent, and it is limited only
by man's mind, his initiative and
ingenuity.

0f
the

correct

experiments
or

answer

find

evolve

iiiic progress. At first it was tan- to transmit their findings in tantaiizingly slow and often bogged gible form to later students, the
down in error and superstition, scientific method became an operbut we owe the very promise of ating tool,
and research in the

there are 48 with annual billings

past, and in the past we may find
clues to the future.

some

lt is not surprising mat the nisi
It is nox surprising that xne first

sense

mooern

a?P?5r^
railed
<?ehntifir

snirit
scitntmc spirit rame with
came witn

cancel n
a

passionate desire to know, pure-

ly lor tne saxe of knowing.

The

For the most

history

alone

ress

of txiis interest

velopment

ciples

some

the

thermodynamics

one

the

came

the

most

de-

prin-

Operations

were

family

enter

any

scieitets,

interest

important

tauis

of the research chemist.

medieval

The

oictable relationship to either.
There was no regular channel of
communication

pendence, no basic need forcing

philosopher

Luring the last half of the I9ta
Ce:ntury- this situation changed.

immediate deviation from

rational

wnole, neither capricious nor arbitrary. He believed he knew the principles and
the purpose of everything about
a

him.

Whatever

coulu

not

ex-

plained by reason, after the manner
of
Aristotle, could be explained
throUga the Scriptures
and

Divine

tellectual

Revelation.

atmosphere

This

in-

scarcely
conducive to scientific inquiry.
somewhat

was

different

^^g^w^L recently

and

expenditures
tiormaire

sentatjve

dustrial

research

proposed
based

submitted
cross

section

grouos>

ciues-

repre-

all

shows

551#?nn

j?v?.

in-

that

industrvplans to spend an average of 33o/r more 011 reSearch and
'development in i959 than in 1956,
annual increase of 11'%.

From

these increased expenditures,

be-

lieved nature and the universe to
be

feeling of de-

still them.together.

—

betwee^-. presedt

Out

es-

aPecially by those companies rela-

d the go e a®e
^ belic organic chemist began.
_

lively new in the field, will
a

host of new products,

come

process
require-

Loniing late to inaustiiai matunty improvements and. the
lacking oveiseas possessions, ment for large capital investment
W^if l%ce
ber ,to take advantage of them. The
S
^Gu»h skill and ingenuity, report further states "The.se plans
^he ^Ulc,kly recognized the impor- fpi. new research together with
?a!]ce.
tecbaical assistance to the new products from present reindustrial problems, and set up the search provide one explanation
J!rf
a continuing series of scien- for industry's plans to invest more
tist-management teams. These in the next four years than in any

other

the

u-i-Pr0feS^

ability
such

lead,

into

gold,

^ysttnous

SOr?u

synthesis.
sidized

His

all

gullible

say

that

often

clients.
of

some

scendants

still

are

the supply

througn

drugs.
not

sub-

were

by greedy
I regret to

his

lineal

with

deand

of important

new

dyes and

This virtual monopoly

broken

preternatural when

efforts

too

and

believe in his variety

transform base metals,

until

America

World

erly

directed
and

was

longer import.

has

been

spent

perpetual motion
machines, fake cancer cuies, and
cheap ways
to make synthetic

ward

years

The

Alchemist,

develop

accelerated

the

how-

techniques
trend

to-

accelerated the trend to
practical application of ex-

perimentally derived facts.

versities accepted the challenge by
up
our
meager supply
j-oth in quantity and quality. How

they have been can be
illustrated by a few figures.
In
1900

the

American

has

research
generally

the

being created in

man's life

the

But

gentleman unquestion¬
a leader in - World

became
II.

War

cult

sector. It is diffi¬

how

see

general

be any

can

you

him

the

how

that

lec¬

the

explain

that

the

not

the judgeships.
They are
putting him on the anxious scat,

letting him sweat,
There

accepted

his

leadership.

You

ineering

while citizens.

columnists

ing

these

the slightest.
The punishment will be

to two
distinguished citizens who deserve

vote

try out

deal with

them

sir, T have
the

President,

his

way

organization

cently

support

been

Work

theory of party loyaltv, has pend¬
Judge to he

Court

elevated

Appeals,

and

nointment of another
It

outstanding

men.

out

has re¬
in H. E.

1933. He

partner

Co.

Earl R. Davis
Earl

the

Russell

partner

Davis,

Davis, Providence, R- L
member of the New York

Davis &

an-

and

to take

Stock

the Federal

happen^ that both

and

Fed¬

the

man

Fran¬

identified with the Moulton

came

the President many times against
his better judgment, but on the

eral

municipal
bond
firm.
With a
background of commercial bank¬
ing experience in New York and
foreign fields, Mr. Bache first be¬

instance in

ing the recommendation of

San

the

cisco-Los Angeles government

the

reluctantly,

—

according to
of

announcement

A certain Senator who has

out

gone

Street,

gomery

imaging is trvirm to apply these

tactics.

FRANCISCO, Calif.

W. Bache is again associated with
R. H. Moulton & Co., 405 Mont¬

language they understand.
Well

type of "leadership."

R. H. HoeHon & Go.

with you — this is
the thing tc do, these editors and
columnists
are
.saying.
You've
got to learn to browbeat Con¬
gressmen,

a new

SAN

don't let them be

you;

the

giving

are

and

E. W. Bathe Rejoins

patronage, if thev don't

with

strange
editors

What
certain

and

photographed

which

coliunnists

those Senators and Con¬

Deny

that

which, in this in¬
stance, he seems to be inclined to

upon chmginsi him at
in the middle sixties.

gressmen

President

insist

his age,

appointments.

and

speak¬

worth¬

But it won't mean

penny out of his pocket, nor
affect his standing as a Senator

ways

editors

whom I

his ef¬

But like the dom¬

far.

wife,

turned

are

disappointed

failure

the

forts in behalf of two very

good because thev have

are

got him

will

because

that he thinks his ways of leader¬

ship

slightest if

recommendations

down.

kind

imagine

can

in J the

career

advice

own

It will not affect the Sen¬

ator's

the

that he-'has his

this

to the erring Senator,
but. after all who is being pun¬

of iender that his critics want him

be,

to speak.

doubt that

annoying

voted

about

indicated by the
feels it frequently

Senator

White House and the Department
of Justice on his inquiries as how

at press conferences to

necessary

been

jury trial, he has found
nothing
but
silence
from
the

leader

United
criticism has

their

That

home

fact

col¬

and

it incumbent to

Presidency

States.
gone

editors

our

had

the

ished?

leader than that.

the

since

Now,

for

allied forces

the

in the European

the

was

all

command

columnists

and

demanding.
:

and which he must deal with.

the

Exchange,

away

passed

Aug. 10 at the age of 71.

are

The judge rec¬

ommended for elevation has been

politics for

Joins Walston Co.

though

years,

July

23,

noteworthy that with few

Eisenhower's

exc^n-

lions thbse industrial groups which

have placed the most emphasis 011
and research have had the fastest

total membership of 1,715,
111 ost of these men were associated
with academic rather than -ndus_
triai
rose

i9S7.

So-

panies^including my own for exThe man who has been recom¬
ample, can boast of the fact that mended for the
Federal judge¬
over 50% of current sales are from
ship to be vacated upon the eleva¬
products that didn't exist com- tion of the
judge now sitting,
mercially 15 years ago. It is also fought for

chemical engineers belong, had a

Sr°wth and are most highly regarded by the investing public.

figure

To those of us in researoh-man-

14,000 in 1925 and almost

agement who have traditionally

organizations.
to

80,000

California,

Chemical

ciety, to which most chemists and

last

staiJfordd Business Conference,'^sunford disciplines,
University,

the

asked

vote

trial amendment. This was
tbe sort of cracking down or anplication of pressure which the

editors

got up

collected

always

this

successful

money

did

Carlisle Bargeron

Then as he grew up in life
undoubtedly the chairman
of the committees which are al¬

•

then

was

jury

he was

■

and

intended, to

(Special to Tut riNANClAi CHP.ONICtE)
activity as an integral and he, along with his
wife, has un¬
Immediately there was a de- essential part of its management doubtedly voted for the
DENVER, Colo. — Clinton, E.
Senator
mand for- scientists—many
more teams.
It is hard to quarrel with whom T have in
mind, making a Lowry is now with Walston & Eo.,
than were available, and our uni- this philosophy when some com- total of two
Inc., Mile High Center.
\ ■
votes.
110

stepping

which
which

how

Court.

able

mudh

ever,

mentioned,

this judge's place

forced to pro-

means, been exhausted.
It
would be interesting to know how

diamonds.

of gullible clients has,

lecent

House - in
which
-;the Senator's
judgeship. recommendations were

money.

ways

dances "and

school

for

couple of hours before this vote
he. had a call from the White

for

duce essential materials she could

went

country.The Senator voted
the
civil rights amendment.

large

sums are not being budgeted
philanthropic purposes.
InIndustry has discovered that prop-

was

War

trial

foremost civil rights editors in the

^mate

jury

Presiden¬

developed by the Alchemist ultimately led to the formation
Research Is Big Business
16th Century. He was an
of the famous I. G. Farben empire,
It is thus evident that industrial
intelestmg combination of medi- and World-wide supremacy in the research is now
big business, and
cine map and lone wolf inventor,
production and sale of a wide it is equally apparent that these

was

leadership.

^plete^Unta^i^

reasoning, one of man's most
powerful intellectual weapons.

applied research

points up the fact that more prog.

Greeks, with
whose
in
ested curiosity,
erted curiosity, took tne land sur-;,^.#ny, Was an intellectual rather
veying formula of the Egyptians
bgftaggs on^lnand created deductive mathemat- were thehnveiitors with no pre^
ical

discourse

has been made 111 the last
n^.Ln?in universities, Stta two decades and especially since
Perhaps ill
following
1
e
<4 mt
cia1 World War II than in all previous
Jheir own interests
commercmi
and
■
infHf.ntinn
worked

the

tial

ture

lengthy

against the Senators grain as it
apparently did to some of the

umnists feel

World War II
rather

This

However, we had yet to learn
how to apply this new tool to inePWi«t<?

hardboiled

question

jury trial amendment,

the exercise of

number

Unprecedented Progress Since

had begun.

dustrial problems.

the, denial

in the brief-years of ,its existence,
Notwithstanding this leadership
and nGW ranks second to none.
background, an increasingly large

modern industrial research to the

the

celebrated

business of about $1 million. Now ably

As the reproducible

theory.

new

Then

can't

totaling , over . 100 million. InciBehind us today, as we survey experiment permitted one scit n- dentally, one of these is our own
the future of- research in, industry,' list to duplicate exactly the results StamfQrd Research.Institute, which
lie more than 2,000 years of scien- obtained by other scientists,, and has-, made -.a.. remarkable - record
r

great

failing is that

panics engaged in research and It so
happens
development : programs of some that' he has
kind, spending a total of $3.7. bil- been what is
lion, and employing over 400,000 k n o w n as a
scientists, engineers and support- leader since
ing personal. This does not in- the days he
elude, mind you, the number of was in grade
scientists and dollars engaged in school. I sup¬
government- sponsored . research, pose what is
nor does it cover the activities of meant
by that
non-profit institutions and - our. is that lie was
universities. - Our total national the one who

1772,

selected

hower's

his

1953 more than 15,000 com-

Lavoisier,
repeating research and development bill in
achievement that renders the ac- some of the work previously done 1953 came to $5.4 billion and to
complishments of the last two on combustion, noted that differ- $7.9 -billion last year.An ever
decades, magnificent as they are, ent experimenters often gave dif- more spectacular growth occurred
only a beginning. This intellectual ferent explanations for the same among non-profit scientific instifrontier has all the romance and set 0f facts.
He decided it was tutes.
There were only two in
adventure
of
its geographical time to make a critical repetition this category in 1936.doing a total
can

of the News

The number of orBy CARLISLE BARGERON
gariized research laboratories mul¬
tiplied tremendously. In 1900 there
You
have
undoubtedly been it was claimed the bill was to
existed only a handful including
apply to all civil rights, not just
Arthur D, Little formed in 1886, reading in the press recently, via
the
syndicated
columnists J and voting, but to integration in'the
Eastman Kodak in
1893, B. F.\
some
editors,
that Mr.
Eisen¬ Southern schools.
Goodrich in 1895, General Electric

Renaissance

the

Ahead

other indications of

hopes the metaphysical approach to the increased to more than 2,000.

yond even the extravagant
when

were

: *

rapid growth.

During the

The New Departure

west saw prom-

From

There

Dr.

those who moved

-:=;f. *

Vice-President, American Cyanamid Company

Chronicle

Commercial and Financial

The
12

vear

This

Other

scientific

such as physics, mathematics, geology, biology and engi-

developed

inferiority complex

tmvsrd Budget Committees, the
Continued

on page

tion in

With Columbine Sees.
(Special to Trie Financial

nomina¬

1,952 against Taft Republi¬

have

cans.

the

Senator

our

President

voted

with

the

voted

bill.

with

vote bv the Senate

The

the

Securities

stab

„n

Corp., 1

bvpass the Sen¬

directly to the Senate floor,

This insured

added

South Broadway.

ate
Judiciary
Committee
and
bring the House passed civil rights
bill

been

Columbine

Now,

Chronicle)

DENVER, Colo.—John M. Fos¬
ter, Jr. and Kenneth L. Shepherd

Senator

President

also
the

controversial section III by which

Geddes, Andrews
.

(Special to The

GRAND J UN C T10

Richard

des,
Fifth

Fryback is
Andrews & Co.,
E.

Street.

Add

Financial.Chronicle)
N, Colo-"T
with L

201 N

Volume

186

Number 5664

The Commercial and Financial Chronicle

EXPRESSWAY

travel,

Chicago without

stop light! As the modern

has created new dimensions in automotive

expressway

our

OUR

AMERICA

AMAZING
New York to

(689)

Credit has opened new dimensions in

so consumer

buying

power.

For modern Credit is the "financial ex¬

pressway" that keeps money moving, flowing, circulating
our nation selling, building, buying . . . resulting in a
..

standard of living unmatched in

constantly increasing
the world

today!

Associates has been helping to build this

For 38 years

of our expanding economy. Its creative financing

vital artery

policies have long been a key factor

in the phenomenal

growth of the automotive industry . . . within the last year
Associates provided over 1H billion dollars for retail auto¬
mobile'

purchases and wholesale financing.

and hundreds of mil¬

help develop American industry

lions

In addition,

supplies hundreds of millions of dollars

Associates annually

individuals for family needs.

"With assets

900 million dollars, Associates

over

one

financial institutions . . . contributing to
expansion of the nation's "financial,.expressway" for

America's great
the

greater progress' and
■'
'

■

-iv

;

•

achievement in the future.
.'-!••

.-V

<'f

i i
fi

^
,,

■■

;

REPORT

FOR

THE

FIRST SIX MONTHS

CONSOLIDATED

CONDENSED

SHEETS

BALANCE

LIABILITIES

ASSETS

June 30,1957

Cash'and Marketable

Receivables:

Securities

$ 87,369,416

$ 87,277,327

receivables..

;}'

Direct and

....

Capital Debentures

Commercial and other

72,754,696

69,419,360

55,851,875

Accounts Payable,
Reserves.

41,403,438

37,002,943

Unearned Insurance

$920,603,434
58,071,228

$849,487,377
51,967,540

23,160,118

...

Reserve for losses

20,628,756

$839,372,088

Total receivables, net

$776,891,081

CONDENSED

CONSOLIDATED INCOME

23,154,342

14,884,154

$949,895,846

.—

due within one year.

$879,052,562

STATEMENTS

1,600,000

—

1,875,283

33,088,139

Premiums

........

30,237,643
29,258,942
155,965,000
52,000,000
17,900,000
22,500,000
31,254,720

28,972,657
216,080,000

Long-Term Notes

.......

48,700,000

16,300,000

Capital Debentures.
Preferred

$435,831,400
37,500,000

Accruals and

Long-Term Notes
Subordinated

2,086,807

July 2, 1957

receivables

Less: Unearned discounts

one year,

Dividend payable

Common Stock

$683,877,863

95,848,295

personal installment loans

Other Assets

within

$455,829,819

14,707,000

short-term.........

$713,932,341

—;

......

Wholesale motor vehicle short-term
loans...

Notes Payable,
Term Notes due

Retail motor vehicle installment

June 30,1956

June 30,1957

June 30.1956

20,250,000

Stock

Common Stock

32,104,720

Surplus

80,176,704

64,729,574

$949,895,846

$879,052,562'

Six Months Ended
June 30,1957

Discount, interest,

Operating expenses.

Net income

....-.

*•

Consolidated net earnings per share
common stock after payment of

preferred dividends

41,828,871

$18,199,466

$17,620,976

8,040,000

7,840,000

$10,159,466

$ 9,780,976

Federal income tax
for Federal income tax

Net income before

Provision

$59,449,847

46,109,920

income

June 30,1956

$64,309,386

premiums and other

associates
1

A-

Commercial and Installment Financing

of
ASSOCIATES

DISCOUNT
and

HOME

COMPANY
CORPORATION

INVESTMENT

ASSOCIATES
- - •»

OFFICE

Other
•

Subsidiaries

SOUTH

BEND,

INDIANA

Commevcicil Mid

The

Financial Chvonicle

Thursday, August 15,

. . .

1957

(COO)

By J.

Scotia

The Bank of Nova

uphill battle

mineral concentrates

Canada's future, Mr. Gibson cites:
(1) Canada's endowment with world's needed resources;
(2) rapid population growth; (3) favorable environment for
investment and economic expansion; (4) resource expansion
stimulating economic development and the northern frontier.
optimism

As basis for

Contends that,
J

with the boom

starts.

entail

not

to give any
position 25 years

propose

forecasts of

our

repeat those of the

from now or to

think

hydro

phasis

that such

the

basic

same

velop

our

that

people to develop and to use
these resources effectively. Though

Gibson

Douglas

population

our

long-term

our

that we

the

seem

for confitsuil x^\
1,A1"
expect to have

reason

dence

matters

that

second

The

de¬

future.

What

with

effects

which

likely
felt

outlook

too small and

remain too small probably for

convinced

rapidly

increased

has

means

Anof
40%

not

well

Dr.

in turn

industry:in which.cheap
major
significance.
major
There bas been qUite a little such
0f

cjeve|0pmen^ already and we only
have to look at Texas and Okla-

envisage the future possi-

boma

good one with great potentialities
for expansion and this is an im-

t i

m e r

Paul

We have

Einzig

ute

payments

convey

continues

impression that it is

the

v e

t#h e impunity.
c

the

Even

government itself, in

its heart of hearts,

contrib-

welcome

to- some

would possibly

balance

payments

crisis, which would provide obvi0us
justification for taking un-

degree toward

'slowmg doWn, if not halting alto- popular but necessary measures.
Setber, the world-wide inflation- so long as sterling is not actively
a.rjf tren.d- For a stiffening of resistance to inflation in the United
States-is likely to force the hands
of 0\ be r countries — foremost

menaced it would take a considerable dose of political courage to
"reinforce the existing' ineffective
disinflationary measures to an

among them the United Kingdom extent to which it would be

~{° abandon common danger.
their complacency necessary to make them effects of
effective,
*n face
Thanks to the beneficial

Sm^eCni? 0Ptbreak ot the last war bilities_ And now with the pipe-

portant factor in present business

ance

pressure

be: possible to indulge in an orgy of
wages increases with comparative

will

means economies for agriculture
anct the steady development of the
t

f f

economy,

with

endowed

the

that

within

cheap fuel for.an area

hydro electric power. That

sonal

States.

proves

the beginnings of the sea¬
on sterling.
But
relative strength of the bal¬

course,

of the

the measure

the really big' thing appears
the oil and gas of the west.

affect the British balance of payments perceptibly.
There are, of

be
be-

Provided

how¬

generation,

are

well

aers

yond the bor-

certainly

the

For

which

Population Growth

thinking about
the

the

i ci
is

are

in disguise that the accentuation
of the
inflationary increase in
British wages has failed so far to

tionary step

entering the scene and
well endowed
the necessary fuel.
.
;

nATtmii
power

This

Rates of

One of Highest

curate and are

and

right direction provided that it
would compel the British Govern¬
ment to take domestic inflation
disinfla- more seriously. It is a misfortune

welcomed as a

ince> bjR in the Past tbeir
•,
1™S.not be.en such as to stimulate
their maximum usetho coono QnH.*
Now atomic
/*viv> rf

only useful in
helping us to
test

;

great advantages in must be
electric power and these
played and are still playing

ever,

ac¬

never

LONDON, Eng.—The decision
to increase the Bank rate of four
Federal Reserve Banks to 3M>%

nartioiiiarlv in this nrov-

com¬

modities.

can

materials

their admoni¬

forecasts

from govern¬
time. What is

pressure

United

mission, bear¬
ing in mind
tion

abroad, rooted in absence of
currencies, has stemmed from American
inflationary trend. Asserts domestic effect here is doubtful,
reporting that in Britain a much more drastic interest rate
increases were added to cost of production and higher prices.
apathy toward inflation

wood

is not an isola ted development; it is part of a
wider world picture where rapidly
1
increasing population and inaustrialization on both sides of the
iron curtain is putting strong em¬

Com¬

the

curbing world-wide inflationary trend.

undue

had

ways

Reserve Board's discount rate rise

interprets U. S.

contribution toward

States

important, however, is that a
substantial part of our rapidly developing natural resources
is fuel, one of the basic requirements for industry. We have al-

have

dustrial

those

■

EINZIG

very

metals. What is moie, the giowtn

can

By PAUL

wTt ne s s^the
Products, fflt(4new' ™et£sas t.ta- aluminumWe have some big .eoal
and ^ and
in_mum
and the traditional base d t ,

purposes

mm*

Dr. Einzig

most

decline in export demand,

aluminum, nickel, iron ore,

For practical

Royal Commission.

of pressure

amount

ments from time to

from relaxation.
I

Canada

as
difficulties
the trend has continued none the
less and it will go on in the years
ahead
perhaps
with
a
certain

base metal's prices, and fall in new housing
Calls attention to the dilemma of monetary policy,
is torn between the risk that restraining policies may
a
business downturn, and excesses could follow

which

could just as
pulp, news¬

But despite

elsewhere.

pressure

into

metals

and

the other hand, near-term outlook poses
regarding monetary and economic policy,

"getting tired." Notes

turned

well

difficulties

some

International Aspects of Higher
United States Inteiest Rates

gradual trend,

occasion-1 ?>':?•
ally involving government inter¬
vention to persuade external users
that such things as pulpwood and
at times an

DOUGLAS GIBSON*

Assistant General Manager,

It has been a

ada.

Outlook

Canada's Mixed Economic

decisions
As

always

ahead

move

hfghelt

of die

vve nave UlltJ Ul lllc

The main reason why the Brit- the American inflationary trend,
lines' the advantages of cheaper ish Government, and to a more the British worker can continue
ictics
nnnuoniant -Pn«l oto Kamrf
f>r less Pvtpnf manv nfhpv c(mrovn. tn litre in o frvnl c r*arar?icp Tt ic

rates

reappraising the

therefore essential
trial
areas
of southern Ontario any undue pressure on their currencies during recent months. And.
why most of us be- 0f natural increase and a substan- and part of Quebec.
the reason for this absence of preslieve the long-range prospect in
tial number of
immigrants.
It
sure has
been the existence of an
this country shapes up so favor- may be that the natural increase
Importance of Northern
inflationary trend in the United
ably.
To
summarize
my
own will be a little less rapid in the
Frontier
States. Even though the extent of
thinking I would give five major jiext few years because the numThe fifth and'tfjnal reason for
reasons why
we should be opti- ber
of
young
people reaching
confidence in our long-term outmistic about the future of Canada, marriageable age is now reflect- confidence in our'long-term out1 make the assumption that there ing
the low birth rates of the look is that we have a physical
will be no major war.
I should great depression. For that reason frontier and shall have one for a
a
« «
also add that my list of reasons the recent increase in immigration long' time to come. It is no longer
is

and

look

to know just

ling holds its own in the foreign
exchange market, there is no evi-

danger that

imminent

and

dent

would induce him to moderate

his

And the general public

demand.

would regard strikes arising from

3S resista^cf, to wages claims a big^ong as n Britain it has been ger evil than a further detenoratlTnmpn?
tion m the purchasing power of
Tf01 a stlong Piessure on sterling,

optimism is far from complete

for

and that it is confined to the ele-

which

ments

are

Canadian

the

include

does

broad

such

not

phenommena

rate of technological

the rapid

characteristic of

scene.

the great possibilities
improvement in underdeveK

progress, as
of

oped countries and as the apparent increase in the ability of governments

with

cope

serious

fluctuations in business. These are

considerations
world-wide in scope
is limited.

important

clearly

but they are

and my time

t»

first

is that

kind

the

live

which
next

making increasing demands
well

are

Much

our

fitted

produce.

development in the

postwar period is a direct reflection of growing American requireminerals

for

ments

and

wood

Moreover,
when our
American neighbors look ahead at
theii
futuie lequnements of industrial
materials,
as
they did

products.

when they

compiled the Paley Re-

port, they come to the conclusion
that over the years they are going
to

need

from

basic

which will

Thb third factor

tribute to

our

con-

development is less

tangible but still very important,
j refer to our economic environof

institutions

and

ment

growth

There

initiative,
investment

baVe

are

economic
room for

opportunity

for

better climate for

right

most

the

advancement

tban

which

conducive to

kind

here

Canada

0tber countries. We

sort

climate

which

gjVes our own people and forejgners confidence and which ap-

attract the neded
investment and techniques.

pears

new

developing
industries—oil, natural gas,
catalogue of

our

for Industry

The fourth influence which will

stimulate

our

economic

development.

our

great resource industries of min¬
*A

talk

Mr. Gibson at the Annual
Canadian Gas Association,
Jasper Park, Alberta.
by

Meeting of the

It is important for what is
being done right now. It is important for the development that
will follow the opening up of new own

ing and forestry have developed,
we
have
increasingly processed

inflationary situation.

remains

Experience

whether

seen

. <

the %.%■ increase in American
Bank rates will produce the aes*re(J effect on business trend in

extent to which

And it is also important for Repercussion on British Balance
of Payments
the attitudes of confidence and
imagination to which it gives rise,
If the increase of interest rates
t°r the fact that it is distinctively
,,
,
c.
,
.
Canadian and not just a repetition ln Jhe. United States results in a
of American development. In my material reduction of American
view, the northern frontier de- wages inflation, there would soon
serves far more emphasis than the he repercussions on the British
Royal Commission on our Eco- balance of payments position. The
n°mic Prospects appears to give it. moment American industries feel
Northern development is so im_ t"ey can no longer depend on virportant in our national picture vhally hnlimited domestic demand

areas.

that it deserves national attention .
^ focus their attention on forand at times it may justify na- eign markets. The expansion of
tional outlays just as the devel- British exports, which continued
opment of the west did in our irl SDite of the non ^on- r\X Z
earlier history. We cannot assume
'
non-stop rise m
of

lines

communication

and

Bri"sh cost of production, would

not be

this could

existing high taxation
corporation profits moderated
the actual loss arising from high

done,

the

interest rates.

Above all, such is the balance
Gf power between employers and

iabor in Britain that the trade
unions are able to enforce wages
increases even during periods of
declining profits:- Industrial firms
are more afraid of losses result"

ing from strikes than from a decline in their earnings if they
should be unable to add tie
higher wa§es to 'their sd 8
prices>

There

course

marked

transportation into the north will then encounter strong resistance, difference in the degree of over"Rritain and
w*L PromPRy a® they are In particular, British exports to full employment in Britain

Russians11 ar^doln^

growth is that much

&rJ£iC S,sr additional
kind
which
leads
to

British

The

Domestic demand in the United

the United States. Judging by tne
British experience, it would be tai
from safe to take this for granted,
It depends on whether there will
be a sufficient tightening of credit
conditions to compel the American industrialists to resist wages
demands. In Britain a much
more pronounced increase livinterest rates was unable to pi oduce
such an effect. This was becau
n°t threatened sufficiently to higher interest charges were simimPel the British Government to ply added to the cost of produc^ace .UP
realities of its raised and the industrial To the
tion, their selling prices. firms

tier.

that

this country.! The list

expect to be in greatest demand
or in
short supply almost sounds
a

good base from which

which they are get¬

of industrial materials which they

have

proceed and we have the kind
of people who can take full advantage of these opportunities.

great deal more of the

kind of goods

ting

west may well develop more rap-

the

the kinds of commodities which

door

huge and gi owing economy
the United States which has

been

the push west, though parts of the bieriink-

idly than the east. It is rather the States has been sufficiently strong
push north all the way across the to obviate the necessity for Amerin economic development and in .Dominion, from Quebec-Labrador lean industries to concentrate unCanada we are fortunate in com- in the east, to northern parts of duly on an export drive by means
parison with many other develop- Quebec, Ontario, and Manitoba in of price cutting. It is true, there
jug countries in that we have an the centre, to Lake Athabasca, to has been once more a world-wide
energetic and well-educated pop- the Peace River, to Great Slave scarcity of dollars during recent
ulation. and. the ability to turn out Lake, to the northern interior of months, but its extent has not
more
and more trained people. British
Columbia and to • the been sufficiently- pronounced to
This is no small asset in a world Yukon in the west. Never before compel the British Government to
where
technology is advancing has there been such a sustained adopt
really drastic defensive
rapidly. We shall have to increase Push to the north along so many; measures to protect sterling. : So
greatly our educational facilities, lines of communication.
long as wages inflation is prouniversities and technical instituIt is hard to overemphasize the needing also in the United States,
tions as well as high schools, but significance of the northern frohBritish, balance of payments

to the

and

probably increase the birth rate,
Numbers are not the only factor

for

resources

needs.

world

since it will

both add to the working force

optimism
well endowed with

.reason

are

1*7

the Woild Needs

Resources

The

welcome

doubly

^rtl^
arises

the question
whether

not

the

standpoint

immediately
can

afford

ourselves.

From

our

Continued

own

eco-

page

the Dollar Area would cease to the United States, and also in the
«*pand and might even decline, degree of taxation. It remains to
Such

developments

would

deplorable from the point of view
of the British economy;

32 less,

seen

neverthe- est rates

the change would be in the

whether the

sufficient

make

have been

difference

higher

interthey

effective than

in Britain.

[volume 186 Number 5664 v

The
the

Skill

problem

America:

employment;

training needs of youth; safety
and

health

standards;

law

en¬

Glore, Forgan Adds

With Lamson Bros.

(Special to The Financial Chronicle)

;

plight of the older worker;

discrimination

Business

Man

(6.91)

The Commercial and Financial Chronicle

. .

'Special to lint Financial Chronicle)

CHIC A

O'Connell

CHICAGO,

GO, 111.

has

—

Harold P.
to

the

Glore, Forgan & Co.,

135

been

added

Campbell
with

forcement;
of

the

Bookshelf

economic

Nation)—U.

ment of

Room

and

state

Depart¬

staff of

South

Salle

Street.

New

Ninth Ave.,

York

New

York, 600.

formerly with Continental Illinois
National

Bank

and

Trust

has

Lamson

West

Jackson

—

Walter

become
Bros.

Form Gotham Securities
LINDEN,
M.

connected

Co.,

Boulevard,

141

mem¬

was

bers

Labor, 341

1025,

111.

Co.

west

the

Stock

New

York

Exchanges.

and

Mid¬

N. J.—Gotham

rities Corp. has been

offices at 703 Chandler Avenue to
engage

Officers

securities
Joseph

are

President;

and

business.

Freundel,

Freundel, Vice-

Sidney

Freundel,

Secretary and Treasurer.

ings Bank.

THE CONSTANT STRIVING FOR

PERFECTION

British Government Publications
—monthly list for June 1957—
British Information Services, 45

Rockefeller Plaza, New York 20,

(paper), annual subscrip¬

N. Y.

tion 450.

Comment, Au¬

Current Economic

gust 1957, containing articles on
"Meaning " of Work in an Age

.Automation,"

"Inventory

and Tneir Relationship
Distribution,"'"Point IV in

Cycles
to

Perspective,"

Literary

"Cur¬
Pol¬

Trade

States

United

rent

icies," "Measuring Distribution
Income,"-etc. — Bureau of
Economic
and
Business
Re¬
of

search, College * of Commerce,
University of Illinois, Urbana,
111.—on

request.;

[Demand

Aluminum:

for

Case

Study

iii Long-Range Forecast¬

ing

James E. Rosenzweig —
of Economic and Busi¬

—

Bureau

University

Research,

ness

Illinois, Urbana, 111.—$1.
i Importance

States

Inc.,

merce,

York

300.

Park

103

Avenue,
Y.—paper—

17,

[infrared:

Economy—

Chamber of Com¬

International

New

Library

Trade

Foreign

United

the

Congress

Bibliograph, Part II—OTS, U. S.
Department of Commerce, Wash¬

ington 25, D. C.—$3.
Irish

Report—Irish Ex¬

Annual

Board, 33 East

port Promotion
50th

Board,

Promotion

Export

Fifth

Street^ New York, N. Y.

Labor

Automobile Deal¬

for

Law

ers—Guide for automobile deal¬
in

ers

—

relations

labor

areas

management

National

Auto¬

mobile Dealers Association, 2000
K

W„ Wasningion 6,
members with one

Street, N.

D. C.—$35 to
year

ing
for

renewal fee of $10 cover¬
revisions and supplements;
non-members, cost is $50

with

one

renewal

year

fee

$15.
Life

Fact Book,

Insurance

Life

Institute

Y.—paper.

Life

Insurance

Chips

York 22,

Gold

Are

Stocks

Victor G. Paradise —
Securities
Company,

—

Paradise
9477

1957—

Insurance, 488

Madison Avenue, New
N.

Beverly

Way,

Brighton

Hills, Calif.—$2.
Natural

Data,

Construction

Gas

January

1957 Edition—Market¬

ing and Statistical Department,
Gas
Appliance
Manufacturers
Association, Inc., 60 East 42nd

Public

Positions

Conferred

17,

Street, New York
(paper), $3.00.

Distinctions

and

Herbert Hoover—

War,

Hoover' Institution

Revolution and Peace,

Stanford

California ; (paper).

University,

Responsibilities of the

Film

ducer and Sponsor—Association
of

National

—

and

Bureau

Business

David
of

—

Economic

Research,

205

University
Urbana, 111.—$1.50.

Kinley

Illinois,

Hall,

The Executive, A Guide to Read¬

ing for Top Management—Bak¬
er
Library, Harvard University
Graduate

School

Boston 63, Mass. — paper
copy ($5 per. year).

—

Are

major
can
m

America

problems

working
the

—

report

and

women

(including

THIS

glistening, ready for shipment overseas.

satisfied customers throughout
the world. Banana production expands, local governments enjoy increased rev¬
enues from United Fruit Company and subsidiaries. More employment, better
Such

searching for perfection creates steady,

living conditions result.
This is

vital part of

the Living Circle of trade and communication

day by day makes the Americas stronger
•

and

more secure.

United Fruit Company

Ameri¬

decade

clean and

Today bananas

through mechanical pressure-jet washers, emerge

facing

men

overhead conveyors

500

per

They

Formerly bananas werewashed by crude dipping in open vats.
move on

Business

Administration, Soldiers Field,

of all
and research are keys to the new

perfect, condition for foreign markets is the ultimate aim

In Tropical America constant study

techniques that make this possible.

Policy of Electronic
Communications
Dallas W.
and

Smythe

growers.

Street,^New York

17,. N. Y.—$5.;'.'^;
Structure

Inc.,

Advertisers,

155 East 44th

A banana in

Pro¬

General Offices:

80 Federal Street,

Boston 10, Mass.

which

Secu¬

formed with

was

formerly with Harris Trust & Sav¬

Chicago.

LIVING

CIRCLE

STRENGTHENS THE AMERICAS

United Fruit

Company has beeiv serving
for 57 years—re¬
claiming wasteland, stamping out dis¬
ease, developing human skills, helping
by research, new techniques and trans¬
portation, to increase the production
and sale of bananas, sugar and other
crops, and expediting communications.
the Americas usefully

Chronicle

Commercial and Financial

The
16

...

Thursday, August 15, 1957

(692)

the

ject it into the middle of
5% bracket.
'

THE MARKET... AND YOU

a n

Webster

Stone

whose

important subsidiary is

most

SfREETE V V

By WALLACE

;

Determining Jurisdiction of the
National Labor Relations Board

❖

:J:

important'

"i"

'
'

gave

the

About

V1 years.

•'

The stock has held in

cheering about a 10-point range so

only

iar

exceed

■

Administration
■"/.

Pittsburgh

reviews the specific

business vol¬

measured by sales outflow or purchase inflow, which
as the criteria, expressed in dollar value, to determine
the National Labor Relations Board will assert jurisdic-

ume, as
serves

where
tion

permitted

>
/

Professor Slesinger points out, for

areas.

example, that public utilities must possess $3 million level;
sales to come under the Board's authority and, among other ' V

things, newspapers must gross.

share. At

University of

Labor relations economist

Since

levels, the pre sent

recent

spectators this year and also shows an
that the 490 level in the indicated yield well into the

dollar

School of Business

Professor of Economics,
:

company isn't -a
bandied around by investors
indication :;VA Neglected Market Item
this
week of any realde- -vRobertshaw-Fulton Controls to any great extent but it, too,
termination to go either way is another largely neglected has been expanding earnings
with gusto and, with trading market
item that is doing steadily. It is anticipated on
continuing at about the lowest good business with the pros- the strength of the good pick¬
ebb of the year, it was mostly pect of a record high in sales up in profit un the first half
an
aggravated case of the this year and net profit at the of this year that the increase
summer doldrums.
;
best level in half a dozen over last year ultimately will

Stocks

'''"By REUBEN E. SLESINGER*

;' •

engineering
name being

1950, when

the National

$500,000 annually.

whether the indirect inflow stand-

note for the bored
was

■

v."'*,

tui-uc

.JliMliUCXil, iWili

UUUCi.

JDUdlU

did put up 4% bracket and well covered the payout is anticipatea-,^to intra-state, business for purposesf authority if it meets any of the
a bit of a fight to retain its
by even the earnings for the 'keepViil line with the ini-;of handling unfair labor practices / above outflow and inflow criteria,
VVV\ ■"
and representation cases, there or if the direct outflow of the enstatus as something of a re- first half of the year. Impor- Droved showing
F
&*
'
have been periodic revisions of tire enterprise is $250,000, or if
sistance level. Otherwise the tant contributions to earnings
Ucvnolds Comes Through the these standards. It is well now to the indirect outflow of the entire
the highlights concerning >enterprise .is- ,$1,000,000, oiy if the
majority element was in- have been made by its expanthem.
,/'■
-y.yentire enterprise, regardless .of its'
clined to write off the 1957 ,siOn . into
electronic devices
:\v Reynolds/Tobacco, hit likeVV"X
v," npin,P« Tprm<! V/X '• V outflow or inflow, -has a gross
"summer rally" as ended even for aircraft and missiles. In
the other cigarette companies;
„ shoula.be pointed out that
in the face of a half a month some quarters the company is
industrial average

■

also regarded as a candidate by the recurring cancer the Board has the discretion of
for a better payout than the scares,;.nevertheless IS <als° a luniting its j^isdictwn^to those ag instrumentalities of interstate
candidate for
improved : re- case:s thatit .feeIs
®. ® 8
commerce. For transportation and
The chief speculation that present dividend which has
suits this year. In fact, profits
| measure this impact is ,stora£e concerns, the requirement
helped while away the time been static fpr six years.
h a v e
g r o w n consistently
wasn't as much about the /
Thriving Steels
throughout all the "scares." to 1950 the Board used an ad hoc ESte
and
market itself as.it was over
Ag
the steel com. In the process of increasing
approach^and decided each case
the possibility of a healthy
;
sfnl loFomed as a thriv. per-share results ever since standfirds reCeived substantial
upsurge in business this fall.
„
branch of industry, with 1952 -without a break, the vision
Aiid skepticism over the
vtahe
Radio and
^ht-pop 'higher. company succeeded last year .rentmgXiW^generally repre- television stations are -included if
effects
of the
..ap increase in the minisibihty was well exploited
in■v^c ■ ^ to: find their tvay in-reaching '{

trading still to go.

//-•'

V '

stete!"

print with the doubters pretty
strident m spots.
: .

,it reports; Doubts

(he

that of 1952

tl{;

ability of .the auto this zyear's /i't^uils, li;tiicy , IS reiatea p me yoiume 01 ousir
Work out, would; cover the noss as measured by either out'Re-Gmphasis on Selectivity
makers to snap back
rlUrirl^nrl
than fl°W °f SaleS °r int'l°W Of purT44^
their 1958 models was m part present dividend
e
It was all enough to lift to
chases. Direct outflow refers to
tQ
blame
for
keeping
twice. Obviously, this makes goods shipped
or
services fur«teels restrained, "although
a^ndidlte 7or a
sionai aavice to give "P *rym
up tryina
m
d bod
f
paymcnt. The company state out to users wno meet
to outguess the "market
and
hefd a re/ord was able to show a fat in- -owrefe.^« tne
direct
outflew
sta^^^^^
concentrate, instead, on inthe metal would be crease in sales for the first
transU c^panie/
.

.cver

with
'the

Retail

mnro

the

^puTof

S 3^

Establishments

For retail establishments—one or

wupn

^Ur'assZe ^isdictSn
Hirprt* inflow is

fup

$1 ono

when the direct-inflow is $1,000,-

without yet and other companies that eousti- outflow fs '510b,oob. Here,-again,
indicating the results from
hannels of interstate, coin- dire^t inflow, may be added to
not the entire economy, and
ess, eclipsing the 1955 peak.
price increase recently put
.
•
indirect inflow to determine
the market as well cot- anv Indlvldual preferences among
•
Direct inflow ' connotes pur- whether the indirect standard is
into exieti.
i^
8
y the steels varied widely but intn rdMWt ' ' :• ■''''
chases coming directly from out met. Multi-state retail establishgreat autumn lift.
the leaders, Bethlehem and
of state.
Indirect inflow means ments are covered if they meet
U. S. Steel, with yields well
Unlike the foregoing, Ten- purchases that are made from a any of the foregoing criteria, or
achteved this year

snowed

whether'or

promise

neverthe-

half of the year

Otis Elevator, for
has

instance, jnt0 the 4% level,

were more

seller within the state but that the entire organization has gross
had their Wlgln out of the state* sales of $10,000,000 annually.

Corp. is not regarded

nessee

been; any thing

but:: a likely than not to appear on as being
i
/.
miracle item marketwise. Yet lists of companies confidently ?
boost its
its business is bubbling along expected to post higher prof- over last

anv

Dositioiv to

earnings

addition' certain

„

this year

businesses

are

types

included and others

Public utilities are required to
$3 million level of sales
come under Board authority. .
Board

reach the

record level, are excluded in spite of the cri- to
issue is still widely teria. The Board has no furisdicyear s

comfortably with a moderate ifs this year than last.
Yet the
increase in earnings indicated
regarded both because it has J™ ZZt Tgricuftoal workers,'
TsSSe f aTfnt
for this year and a yield well
GeneralMm
which hasn-t been well deflated from its over mutual non-profit
mto the 4% bracket.
V
ij
r
'
i
7v
ad«
«
4>
^een muc" °i a market fea¬ peak of recent years, the trim systems where 95^»f the water tionally
'"LTS vertise nationally sold products
ture, is a conservative item runmng around 25%, and is
$500,The company, apart from stiU available at a yield apbuildings are
its diversification, efforts of proaching 5'.f ;• in part due to
mplover who
recent .-years, ..is
busily, en- the profit pinch on earnings

futures,

„

....

officer building

10% ahead of last year

continued to its chemical products, it is a tinder Board authority if it has a; gaged in interstate commerce and
string of ad- producer of several- -• copper direct outflow, of $50,000 annual- uses, the building primarily, for his
effect more than compounds so it has weath- ly,. or an indirect / outflow, of own business. Any firm that fur-

to'make

vancesr

over-all 'lag in half a dozen years; Company
construction generally. Forprojections are that new faeign operations indicate an cilities, added products and

despite

work ;is esti- though \ sales

matedto.be running at a rate climb
some

A leases or owns the building and
that made them fall below the tiple-thtUi other "chemical"; ,Now, as to the standards,
1956
fiscal year
level, al¬ companies. But in addition to non-retail establishment will Come who operates it is otherwise en-

new installations of
elevators and/escalators since

gagedvin

the

even

busier

time

importantly^

and,

are more

able than domestic
*

more strenuous cost-saving efforts
profit- wm Gffset the pinch and lead

ones.

,;{
.

special
mainstay is

s e r v i co

work

facet

the

and

better results

profitable

Hershey

life

cur-

that direct inflow may be added F e do r a l"' Government contract
indirect. inflow to dietermine automatically is:covered.
presented
..
^
-

necessarily at any

not

coincide* with,-those

"Chronicle."

They

are

of the to

those of the author only.]

;

an-

mundane

despite

con-

will-accc^untifor.some 20% of tinued growth in earnings for
? ?v ma.^er
years, several years running. And
Added to that is its

•

(Special to The Financial Chronicle)

For Immediate Sale

;

PASADENA, Calif.—Carl Sarafian

AVAILABLE

With Oscar Werner

•

Chocolate

other that has had

which,, it is estimated, market

time

rent fiscal year.

Otis'

maintenance

in the

article

has

become

connected

MOODY'S MANUALS

with

Complete set—1929-1957

Oscar G. Werner &

Co., 3870 East
Colorado Street.. He was formerly

with J.

Logan & Co.

—..

work -in

improvement is generally exthe materials
handling field, pected this year by the better
in electronics and in
bowling part of a dollar a share. If, as

^rS'

la1:ter do" ^so expected, the

yearend

Harris, Upham Adds

OAKLAND,
Cousins

VI.

(no supplements)

Calif .—Maurice

now

associated

with

Harris, Upham & Co., 1400 Frank-?'.
lin

CHRONICLE

date, bound quarterly
,

(Special to The Financial Chronicle)"*
■

plnS?

ihg even better than prelimi- dividend is boosted moderf..Ty estimates hjid indicated,
ately, the payout would pro-

1929 to

inclusive

COMMERCIAL & FINANCIAL

Street,

For Further Information

DIgby 4-4400 fExtension-8114)

Commercial £ Financial Chronicle, 25

Call

write* ftox 723,

Park PJL Ncw

York <

Number 5664

186

Volume

.The Commercial and Financial Chronicle

(693)" 17

Importance of Comprehensive

due

V
f I

,
*

Ky ROGER W. BAB SON
.

•

has a small
with V two or three
He has~worked hard and

store

retail
clerks.
;

accumulated

tal

<,^1H
V
H,

customer suf-

fered

pecu-

liar accident
in

the

jur

store,

award-

the

custo-

damages0 This
notonlywiped
1

ings of

Roper W. Babson

! which

Insurance

insurance

life

have

the

owe

life

surance

Gravity

While
sue

thus far

friends

our

have

might
gross
grow.

hated

neighbors, it is
the thing to do!

lawers will take

Gamewell, and

working

are

■■■■

prevent

losses.

H., is working to prevent acci-

such

LOS

^e1111^s'
falls.

>°f. wb|ch come from
Occupational accidents are

generally covered by
insurance
rates

with

and

ANGELES, Calif.

„

—

co.

Lawr-

Southern

are

California investment
cir9les' ha? recently become asso9*atpd with J- Barth & Co., 3323
Wilshire Boulevard, according to
Walter E. Lawrence, Resident
Parfner- Mr. Tuller's duties will
encompass analytical and research
W01*k as well as various administrative

functions

Lawrence.
the

Mr.

investment
than

assistant

Tuller's

standard

compensations.

Anthony J. Sano and Sebastian

Juries

rri

25%
are

•

they

win

becoming

11.

the

case,

constantly

the

Street, New York City, to engage
in

securities business.

Board;

S. E. Sees.
HATTIESBURG,

eastern

Securities

engagingj in

re¬

Weld

Co.,

recognized

are

gan

Street, New York City, members
Sept.

Green

will admit Robert

and

Thomas

of A. O.

partnership.

in¬

The only question seems

the

will

home

o(wner

friend

whom

give the business and the

amount which

to carry.

are

especially recommend what is
as
the
"comprehensive"
policy! This includes most casualty
known

risks

other

than

insurance.

life

Unfortunately, less than 10% of
the people use these comprehen¬
sive

policies.
My appeal, there¬
is for every retailer to take
out a liability policy and to make

RESULTS OF OPERATIONS

fore,

it large

Not
out

stores,

also

but

of mine had

ing

feather
of

crowded

retail

tried

involve

another

awarded

The

the

case,

retailer.

because

$10,000

milkman

broken

I could

give
lustrations!
The

point

inake

have

who

board

$5,000.

especiaRy
will

you

for

such

want

probably
in

another

agent

Investments

fire

selling

great

rise

For
I fiio

hold

unfairly

are

^lev
h?v«

price
Stocks

to the tendency of

(Derhaps
they

years.

insurance companies
below
their
book

Commissions

not

down

some-

making

should.

exoelie-t

ample reserves

the

However,

managements
a^d

believe

tume da^'-,f)e treated' fairly.-•

114

reason T am

insurance

stocks

now buying

while

216

•

300

301

2.048

$ 9,990

8.927

$ 2,576

2.468

income

v':

127

904

Deductions

Interest

expense

charged

construction

....

$ 3,121

292

IS!

314*

....

717

bonds

first mortgage

interest

Other

81*

757*

456*

CP 9

Net income

on common

Common Shares

outstanding

$ 2.633

1,403

$7,357

214

1.575

32
$

860

1.189

6.497

$ 6,59 i
860
$

they

5,734

2.651

EARNINGS PER COMMON SHARE

2,651

$0.59

„

$0.45

$2.45

$2.16

red figure
time

2,333

end of period

(in thousands)

Denotes

645

214

Dividends

Earnings

Total income deductions

Preferred

23*

Other

its

interim statement. The Company's fiscal year ends December 31, at which
financial statements arc examined by independent public accountants.

com-

popular and

^mues. Owing
otate
es)

Tliis is

Stocks

unng the past few

tim°J

Gross

Stocks of life insurance
[Panies are the most

! p
I are

for deficit of

siderably.

most

Income

ura ice.

his price
and a sample.
Life insurance premiums are
very
competitive and vary little;
fire
buirance premiums are f'xed by
State Commissions at
very
low
rates; but liability rates vary con¬

less expenses

reserve

Total other income

ask

had

8,626

Other

submit

Transit Company

il¬

carefully, epecially
If the price seems

$32,237

$ 9,690

Transit Company,

the fine print.

hi'Urance

$33,155

1,989

Adjustment of

your agent
today for
Prices and a sample policy. Read
this
policy

high,

$ 8,006
$

Rentals, dividends and interest income from

Telephone

too

$ 8,256
$ 2.396

Other Income

of similar

scores

that
ask

stepped

collected

........

Operating income

got hurt by running into a person
while sliding down a hill in win¬
ter.

taxes

Total operating expenses

boy

....

Deferred Federal income taxes

was

his

....

taxes

Federal income

and

parent

production

Depreciation and amortization
General

jury

$25,000,

woman

$40,86:

Other operation
Maintenance

the

during

sale.

the

Fuel used in electric

wives

out

put

$42,845

Operating Expenses

protrud¬

$ 9,995

$10,652

Operating Revenues

neighbor

woman

awarded

their

which

another

take

for

woman

hat with

eye

retailers

for

195b

1957

(OOO omitted)

Wives

vs.

insurance

children.

and

i'ttded June JO
j 956

should

only

liability

For the tzvelve months
ended June JO

For the three months

enough.
Stores

COLUMBUS AND SOUTHERN OHIO ELECTRIC COMPANY
215 North Front Street

•

Columbus, Ohio

Co.,

New

York

vacancy

every

and

Cook

left by the resignation
Choate, partner in Clark,
Dodge & Co.

In fact,

"musts.""

of the
Case Company, to fill
City, Jias beem elected ^a diiector

Pry or

Stanley

retailer

Corporation

securities business

Allen N. Jones, partner in Mor¬

mu:t

A. N. Jones Dir.

Broad

fire

and

Corp.

Miss.—South¬

White, Weld & Co.

how much

carry.

insurance

Hankin,

from offices in the Magnolia State

debt

Gregory

Building.
Dr. R. C.
principal in the firm.

understanding they are to re—

securities business. Officers
Oscar L. Chapman, Chairman

spans

was

with offices

Treasurer,

tw°-hundred"clollar fee but with Gagliardi have formed Sano & of the New York Stock Exchange,
Co.
with
offices
at
15
William
r

To Admit Two Partners

retainer basis, perhaps for a

formed

President; and Joel D. Wolfsohn,
Vice-President, and Secretary-

cently with Kerr & Bello.

White,

Forms Sano & Co.

suits

been

career

business

years.

compLilsory

fixed

has

in the Walker Building to engage
-

ence H- Tullei> widely known in

becoming

fast

Most
on

money

continue

hospitals, and better

constantly working to
insurance profits; and
companies,
fire-alarm

Furthermore, the
Gravity Research Foundation, in

(or lost) from the stocks
will

fairly well
Moreover, "wonder

companies such

others,

casualty companies. Their

business

life-

store,

our

statement

our

lire, insurance

both

liked

stocks.

sional

■

are

help life
sprinkler

WASHINGTON, D.Management
C.—ProfesInvestment

JD |L 9 LOS fln^GlGS
Harfh. |
|

continually by
And if we

anything,

bank

show in

new

also

Prof-Inv- Management

agents.

mortgage

drugs,"
doctors

values.
never

can

Lawrence Tuller Willi

the

Agents

solicited

are

cost

result in bankruptcy.

may

be made

awards,

the

own¬

into

have

Juries and

celve

but

the

put

insurance

Probably the most

sav-

time,

book

fire

the

out

cheao.

are

Recently

•

below

accident,

)i$15,000.

working

levels

current

of mine

friend

stocks

insurance

their
in

There is little argument about
life insurance awards; a person is
either dead or not dead. Damage

ascertained.

risks* including retailers' liability insurance for their stores,
and their wives and children as well. Favors investment in
fire

rise

increased wages, and
depreciation of the dollar.

from

'Babson points out importance cf policies covering casualty

the

living,

Insurance Protection
•

generous

Financial Chronicle

Commercial and

The

. , ,

Thursday, August 15, 195.

(694)

Continued from first page
/«'•...■

•

example, .business and
during the first
annually, but were
billion during the
the Gross Na¬
of $433.5 bil¬
above last year, or about 2xk%
prices is taken into account.
our

national

continue. As a major partner in the
business scene, the rails are in a position to share this
progress in full measure. That they are determined to
do so is borne out by the impressive increases in expen¬
ditures for new equipment. Thus, approximately 150,000
new freight cars have been ordered, or already received,
during 1956 and
1957. Additionally, the rails have, (
undertaken extensive road and yard modernization pro¬
grams, have made increasing use of technology, and are
actively experimenting with new services and operating
techniques. These positive measures are excellent in¬
industry's approach to

dicia of the

Despite the many

factors which

railroads, there are

look for our

new

sideration.

healthy shape,
excellent service
but there can be
every expectation that they will become more nearly
the industry continues to grow with the national
economy.
Under the Interstate Commerce Act, the rail¬
roads will continue to enjoy an arena wherein the tra¬
ditional free enterprise of our country will endure and
reasonable competition works for our mutual benefit.
country's railroads are in

All in all, the

•

operating at a profit, and rendering an
to the public. Conditions are not ideal,
so

replenished.
provided with
good sub-soil moisture.
Cotton
and milo maize crops are in excel¬
lent
growing condition,. and p. with
a

Haven

The New

period during 1956, shows a
why we are optimis¬
tic about the passenger service is that on June 16 we
inaugurated two finer and faster Texas Zephyrs operat¬
ing between Dallas-Fort Worth and Denver, and there is
110
doubt that our patronage on these trains has in¬
creased, and will continue to do so, because of the beau¬
tiful equipment, the improved schedule and performance
of this operation. It is expected that our passenger rev¬
enue will increase 10% to 15% as compared with. 1956.
Further, the equipment that was released from our
former Texas Zephyrs when our finer and faster Texas
Zephyrs were inaugurated in June was placed on our
secondary trains 7 and 8, thus giving us two good trains

substan¬

progress

1956.

months

This

was

accom¬

plished despite the fact that earn¬
ings for the second quarter of 1957
were
affected by the Railway Ex- >

{

•

Commerce

Interstate

The

George Alpert

realizing the

Commission,

increase in
inadequate
will help in some measure.
Moreover, our piggyback
business is increasing substantially.
During the past
month, we placed »in service 30 Fruehauf truck trailers
designed to speed the development of our; piggyback

plight of the railroads, has granted a 7%
freight rates which while in my judgment is

210 points on the New Haven
major industrial centers' in the

service between

475

than

trial

Unless

relief

from

onerous

taxes

even

increasing costs.

°U1

finaricial condition continues to improve,

has been

accomplished with the aid of a $6,000,000

long-term flood loan in 1956, by the payment
others.

sizable

of certain

and by the rearrangement of
In addition,
we
have already completed our
equipment financing program for 1957.

whole I

obligations

,th® mid-year outlook for the industry as a

feel

that

the

balance

New

The

York Central

New

Service

expects the last third of tb

to be a

year

many

the

year

will be far

programs

for plant

On the

Wabash every dollar

through

expense

are

The

close as

brightest prospect for

The last large

Central this

was

our

$1,000,000

Cleveland. This new
complete in the industry,

projects ranging from

volume growth in rail trans¬

trailers,,'owned by the railroad, the
privately, in each case they

carrier trucker or

be opened by
technical resea
laboratory, the larg'

scale development to

year

is now working
the checking of ballast to the 1
of nuclear energy.
Already it has produced a hum,
of devices that have resulted in better and more reliaservice to our customers. Along with the expansion
most

and

technical

research, the Central is

market

and

of rapid mass movement by rail with the flexible
convenience of truck door-to-door pick up and delivery.
Whether the containers
are specially constructed
01*

highway

center

be certain that the rates

ages

common

trains

portation is the piggybacking of freight in portable con¬
tainers in flat cars which, in effect, combines the advant¬

typical

electro
world.
New Y

costs for performing the service
possible to the irreducible low point.

realistic and that our

Control clivisi

between

the railroads

profitable operation, we must

syste
usej

opened our new Centralized Traffic
Cleveland and Buffalo—the longest
callv controlled double track stretch in the
Central's CTC system is now being extended
main line so that it will eventually cover our
to Chicago route.
It allows us to speed freight
express tracks at 60 miles per hour.

also

expanding national economy. In doing
must be ever mindful that their inherent
advantage is the mass movement of persons and property
at minimum charges with maximum speed and safety,
therefore, if we are to attract the necessary volume for

railn

month period. We have opened our
wide freight car tracing service bureau making
automatic teletype and IBM equipment. Our giant m
Frontier Yard at Buffalo—opened last Winter—repla
eight separate obsolete yards and has cut time of frei
movement through Buffalo by two-thirds. This year

during a 12

the demands of an
so,

better job

has |
of ma

expansion and replace¬

of possible saving

of doing a

freight service, the Central during the last year
into operation probably the largest number
physical developments ever +0 be installed by one

is being sought out
So it may be applied to the betterment program for road
properties and for new equipment in order to improve
both service and operational efficiency. Successful mar¬
keting of railroad transportation under the present
highly competitive situation calls for renewed efforts to
tailor the rate structure and the service to better meet

elimination of unnecessary

its

coupled with the upward pressure on prices for
and materials, effectively serve to retard or post¬

pone

service them.
continuing program

ment

ment.

direct

in the case of other forms of transportation.
some
solution is found, we cannot continue to

outstanding

RAYLIS

Freight Sales and
York Central System

Vice-President,

labor

and more
east and

provide the service in the face of ever
lhis

ARTHUR E.

Another indication

money,

keep pace

basic

all

form

subsidy,

public

requiring, a step-up in orders for steel and other
commodities. But the high interest costs for borrowing

weather rail commuter service that , will
certainly do much to relieve present traffic congestion.
However, besides increased fares, some other means
must be found if privately-operated railroads are to
continue its necessary service.
Other means might take
the

transportation and in turn to improved servi
with the growth of the nation's econon.«

and we are .told .from, many sources that indus¬
inventories are reaching an irreducible minimum

nation

very

low-cost,

charge

much encouraged by the increasing public
the railroads' passenger service problem.
This is particularly true in the field of the low-fare
commuter
service.
Public authorities and even the
commuters themselves are beginning to recognize that
this service is essential to the welfare of the communi¬
ties.
Furthermore, • the railroads can provide frequent,
I

Also, the principle that user

collected from private agencies using facilitie
constructed and-paid for by government with genen
tax revenues has not only become the general publ
opinion, but steps are being taken to give it effect
the policies of the'Federal and state governments. The
developments will lead to more equality of opporturiit

time of strong upturn in business. In fac
we
believe that the fourth quarter of 4957 will bri
us a
rate of business above that of last year and moi
in
tne pattern of tne last quarter of
1955. Of course, the falloff in busi¬
ness
activity in general brought us
a
disappointing second and third
quarter this year. This was accen¬
tuated
by
some
specific problem
each day in each direction between Dallas-Forth Worth
and Denver.
p,
v- spots that affected the Central in
particular. -Examples of this were
With the continued improvement of equipment and
the less than predicted automotive
service, we are confident that the Fort / Worth/and
production which carried with it a
Denver Railway can look forward to a very success¬
general dropoff in iron and steel
ful 1957.
'
' -7
shipments—all these three classes of
business being especially important
ARTHUR K. ATKINSON
to the-! Central; a spotty movement
President, Wabash Railroad Company V '
of coal which began to,improve and
then was upset by a serious strike
The relative stability,of industrial activity in the area
A. E. Baylis
at the Toledo docks which still confserved by the Wabash Railroad Company during the first
y to addition, thevp wore sevhalf of 1957, as compared with the same period last year,
eral other strikes, including that of the cement industr]
is clearly reflected in our record of carloads handled
which hit the Central especially hard.
which .indicates .an increase .of. less -**.
~"
than V2 of 1%.
Operating revenues
The Central, as well as other railroads, will have tl|
-during the first six months were up
benefit of a small freight rate increase from the end
6.3%, but operating expenses were . ]
August on. Although the carriers asked for a 15% ii
up
7.2,%. with the, result tliat* net
crease
taking holddowns into consideration, the Coir
•railway operating .income was ap¬
mission's "7%" increase will amount to only about 5'
proximately the sarpe as for the first
in the case of the Central.
This amount does not cov(
half 011956
■
-. ,
the inflationary measures in our wage bill which \vi
While .the .general
outlook for
get another push upward with the scheduled cost-o
freight traffic appears brighter for
living wage increase in November. Despite the slackc
the bafance'of'this year 'and perhaps
in business, the Central did not curtail service and d
will ca'rry Over for the 'first 'half of
not cut back its immense physical improvement pr
1958, there are a number of dark
gram. We expect to spend $250,000,000 on this progra
spots and cross currents which con¬
this year.
Repairs "and maintenance were continued
tinue to blur the*picture and require
a
high level and freight cars were in good supply d
us to proceed with caution.
The 13
Arthur K. Atkinsoi.
to a continuing large car purchase program.
Bad ora
regional Shippers" Advisory Boards
cars continued low.* The Central is going into a progn
predict carloadings" during* the third
of closely tailoring much of its freight car purcha;
quarter will increase an -average of 8.6% across the
to the needs of its customers by buying special equ:

midwest.

awareness

has grown.

should be

•

:
:
.
;
Even though our- freight revenue-'
was
seriously ' affected during the
month of July by the .cement strike,.
I am cautiously optimistic that the '
balance
of the year will show a
considerable improvement over 1956.
strike.

press

groups

compared to the same

4.92% increase.

towards a solution of many of the prob¬
lems which faced us in January of 1956 wben I became
President. Although employees' wages, cost of material
and supplies
(especially fuel), and —
1
per
diem rates have all. increased * g§
while carloadings in general have
declined, we have been able to hold.;
our
loss for the first six months of
1957
to $194,905 compared with a
loss of $1,803,471
for the first six
tial

from

and Hartford RR. Co.

Railroad continues to make

Analysis

bountifully.
revenue

should produce
of passenger
Jan. 1 to July 31, 1957,

moisture

seasonal
R.Wright Armstrong

GEORGE ALPERT
York, New Ilaven

been

Agriculture has been

President, New

have

reservoirs

leased equipment, the monthh
third full year since first offer'
service has tnpled the average monthly volunn,

(railroad owned or
count in our

trailer load

thd

con-'

at present, is
in connection with investment capital: Although many ,
cars have been ordered, more are needed.
A few 1
prosperous roads are well able to finance their own
programs, or to attract the requisite capital, but others
have not always been able to earn satisfactory profits.
This fact is often given greater weight by potential
investors than the very real prospect of increased profits
from modernization.
Most of these railroads, convinced
of the necessity as well as the profitability of moderni¬
zation, have applied to the Interstate Commerce Com¬
mission for approval of higher rates with the expecta¬
tion that improved earnings will attract investment cap¬
ital. Many of the increased rate applications have been
approved, at least in part, and others are under con¬

with

during

furnish a bright out- '

serious problems

and Denver Railway Co.
Railway are very

1957.

year

the future.

Possibly, the major one,

fronting them.

the •:

ing this
toward the outlook of our 'railroad
While our carloadings for the first six „ of the first year. We are confident that the intercitj
months decreased 8.6%. under sim¬
freight traffic which formerly moved by truck over
ilar period last year, July increase
highways will be' back on the rails via piggyback i]
of 3.5% has reduced this to 3.47%
ever growing proportions, as the advantages in effidencj
for the year, and this figure we feel
and safety are overwhelming.
;
will
be
largely dissipated., in •..the
The outlook for further easing of regulatory restraint
remaining months of 1957, because
on the railroad
industry becomes, more encouraging a.
we
have had abundant rainfall,, :n
each new investigation and study of the problems facini
this entire area the early part
of
the transportation, industry reveals the extent to whicf
this
year
breaking the prolonged,
competition among and - between the various carrie
seven-year drought.
Our lakes and

optimistic
the

and to facilitate the prompt trans

goods with a minimum of loss and damage
Piggybacking also has a strong appeal tof/the general
public who recognize it as a natural solution to ft
congested highway situation whereby the number 0<
big cross-country, trucks using the roads can jpe reauced
On the Wabash, where piggyback operates entire!}

portation of

Worth and Denver

the Fort

space

costs, storage

ARMSTRONG

Vice-President, Fort Worth

current national pros¬

perity will

WRIGHT

cause

Commission,
im¬

above, I should expect an
provement in the net for the railroads throughout
country.
■
4 •
•
V

to which

industrial inventories were reduced
-quarter at the rate of $800 million
accumulated at a yearly rate of $1.5
second quarter. For the second quarter,
tional Product climbed to an annual rate
lion, approximately 5%
if the effect of inflated
All indications are that

granted by the

conditions. For

general business

expect
the increase in rates
I have referred

;

•'

'•

bej

various features attractive to many shippers
of the opportunities to save on dunnage, handlinj

have

record of the first six months.
carloadings will improve and with; the benefit

favorable than the

research

During 1957 also, we

■

expanding its econor

improve

our

service to

customers.

•

revoJ
Continued on page

will put into

service our

1861" Number 5664

Volume

couragement,
will

it is probable there

activity

consolidations
the
? (!

Many
made
prove

Outlook for Carriers in Balance of 1957

and

these
the

some

enable

cases

long way tobring down

is estimated
probably will record

roads

year's

earnings

PHILADELPHIA, Pa.-Langley-

between

compared

$920,700,000 in 1955.

For the first

most railroads have increased this

-nation's railroads in the last

The

expected to have
one of the best
six months earn¬
ings period in many years. There
are a number of factors which in¬
dicate this probability.
The recent freight rate increase

half of 1957 are

tral acquiring control of the Cen¬
tral of Georgia over
of
of

other rails.
the

Boston

talization
had been

sion.

six months net is placed at around

last, it has been brought

$350,000,000
as
compared
with
$400,000,000 in the like period of

year over

the opposition

about by higher wages. Now tnat
most carriers are highly dieselized

Also, the approval
&
Maine recapi¬

1956.

lation

electronic

yards

ex¬

William

is the readjustment plan of the
pedite the movement of trains;
by the Interstate Com¬
Missouri-Kansas-Texas which
Central
Traffic
merce Commission in one impor¬
Control
to
cut
tant
-development. The carriers would eliminate the arrears on the down the needed number of
tracks,
received a rate hike of 7% in the preferred stock. A decision in this
case is
hoped for by the end of thereby reducing maintenance ex¬
East and West and 4% was al¬
penses;
and
the installation of
lowed in the South.
These in¬ the year.
'•%
ffr.
creases may be made effective in
Having received the above en¬ modern accounting machines. All
15 days, or on about Aug. 21. It is
estimated the additional rates will
add about $440,000,000 to railroad

dent
New

rate boost will more
higher wages which
will become effective Nov. 1.
In

73 StONGS

Smith.'

formerly

manager

Hill,

Jr.,

CORAL

Vice-Presi¬

Co.,
York, has been elected to the
Dillon,

Reed

and

fice

Coral

Drilling Co., Tulsa, it

announced

was

N. Law, Presi¬

204

Aragon

pointed

has

Wood

divisional

existing labor contracts,
railroads will increase wages

started in

by seven cents an hour on Nov. 1.
estimated the pretax annual

It is

$168,-

will approximate some

cost

area;

associate.

deep pit in Northern Minnesota

000,000 for the Class I roads. In
addition, there probably will be
an increase based on the escalator
the cost of living

clause based on

Each one-half, point rise in

index.

living, as defined by
the Consumer Price Index of the
of

cost

the

U, S. Department of Labor, calls
a
one-cent hourly wage lift

for

railroad labor under the

for

con¬

Suggestion to curbstone superintendents watching skyscrapers
thrust into the blue: remember that chances
skeleton

Northern
source

price index has been con¬

.The

Minnesota, home of the famous Mesabi Range, and
a

high percentage of all iron

ore

used in the

this

ore

from Minnesota's fabulous range to

its huge

docks at Allouez, Wis., on Lake Superior. It's
mass

hauling

methods

the kind of

do efficiently, quickly, and with ingenious

developed for this

very

specialized traffic job.

Take your

shipping problems (by letter, phone or wire)
Nicholson, General Freight Traffic Manager,

Great Northern

Railway, St. Paul 1, Minnesota,

consequently,

and,

rising

stantly

the steel

nation's steel mills. Great Northern hauls about one-third of

to W. E.

tract.

are

rising from Manhattan's bedrock got its start in

it is indicated that rail labor will
receive

three-cents

additional

amount to
Thus, total

whicti would

hour

$^2,000,000

annually.

Nov. 1 will
amount to about $240,000,000 on
an annual basis.
For the final two
months of 1957 the amount will be
increases

wages

approximately $40,000,000. How¬
ever, the
carriers will have the
advantage of having higher freight
rates in effect
for possibly two
months

prior

the

in¬

wage

creases.

ton

have

roads

the

believed

in Washing¬
their plan for the Federal

nade some
on

progress

Government

establish

Gov¬

railroad freight

ernment financed

pool. Currently the roads are
admittedly short of new and mod¬

car

freight

ern

cost

cars,

'the current high

has been a

money

deter¬

of the
carriers
seeking to finance the
purchase of new equipment:
As
a
matter of fact, the bad
order
against

ring factor

cars

many

of most roads have

duced

been

the carriers have found it
economical

junk older

cars

formerly
nance

and use the

their

car

own

Iron Ore's

instances

most

employed

re¬

minimum,

practical

Great

labor

mainte¬
building

loads

shcps to produce new and more
efficient equipment. This has re¬
sulted in
nance

reduction

expenses

many

for

are

mainte¬
cases.

substantial

iron

ore

dock,

near

daily average of 12 ships

Superior, Wisconsin,
a total capacity

with

150,000 tons. The four docks have 1352 ore pockets
each with a capacity of 300 to 350 tons. Over 60 grades
of iron ore are sampled and mixed to specification before
of

over

delivery to ships' holds.

Estimates of traffic in the third
quarter

Trip to Steel Mills Begins at
Northern's Mammoth Docks

World's largest

rise

compared with a year ago when
the level of carlpadings were de¬
pressed

the

long

Projections

the

Shippers
to

Advisory

year

badly

steel strike.
13* regional

Boards

point

8.6% rise in the third quar¬

ter of this
year as
ago.

affected

compared with
of the more
last year esti¬
much as 15%

Some

areas

mate loadings
as
ahead of 1956, while for the North¬
west, hard hit by the stoppage in
iron ore

shipments,

than

increase of

The somewhat more liberal de¬
cisions handed down by the ICC

recently
afeing

also

have

been

encour-

rail

management.
Not
°uiy the rapid action in the freight
*'ate case Wihch left the
way open

|°r additional petitions for rises,
but
the approval

of Illinois

the

incomparable
Offices in Principal Cities

55%-is expected.

Cen¬

EIYIPIRE GUILDER
Take

Great

For

of U.S. and Canada

Northern's Empire Builder, between Chicago

Seattle-Portland. It's great! It's

information

been

manager

line with
the

Fla.—Slaybranch of¬
Avenue in
ap¬

for

Foster E. Alter will be

the

his

dent.

opened

the fact this

than offset the

Gables, Fla.

Fred

board

GABLES,

ton & Co. has

Manhattan...and it

over

department of Compton

sales

& Wharton.

Opens New Branch

Board of Directors of Falcon Sea¬

the

Mr.

Pennock

L.
was

Wm. Hill, Jr., Dir.

granted

earnings. : •
;
What is of great importance

Smith

Slay ton & Co., Inc.

which

Now before the Commission

Mr.

•

cutting down transportation costs,
previously other efficiency measures are be¬
rejected by the Commis¬ ing pushed. These include: instal¬
plan

Langley Howard Opens
Philadelphia Branch

Howard,
Inc.,
have
opened
a
with1 'branch
office
at
1401 "Walnut
$873,900,000 reported in 1956 and Street under the management of
$850,000,000

efficiency.

ratios

time,

lull

which im¬

operating

roads

this

the

can

the

of gross revenues to income;

service.

savings

these should

other

unprofitable

moves

operating

While

passenger

operating
by

and

abandonment

mileage
'

(695)

The Commercial and Financial Chronicle

, ,

and

incomparable!~

reservations: P. G. Holmes, Passenger

| Manager, Great Northern Railway, St. Paul 1, Minnesota.

Traffic

The Commercial and Financial Chronicle

Thursday, August 15,

(696)

Continued

been
.

the South so far in 1957 has

situation in

The

from page 18

1.'

left

mark

months

liflPiJ

noriorn

its

our jcarloadings
during the first siv
However, business leaders in manv
along our :, rails have expressed fconfiden/'
that desired inventory reductions have" been
largely ac°
complished and look for improved ""industrial

perhaps

average. • 1 here

national

the

than

better

little

195-

1957.

incustries'

activitV

inaugurated this Fall as a new high speed service on
the Central, .first between Chicago, and New York , and
then expanded
to other points over.; bur 10,700-mile

has

•

which

1957

had

to think

that the remaining months

President, The Buckeye Steel Castings Company

mon

operations of the company continued on a satis¬
factory basis during the first half of 1957.
The net
The

now

tax

'Teveiiiies.

our

di&turbiny

'Notably

was

highly important

within

production.'

automobile

that

This'will

to thisocompan

industry should stimulate
particularly true if the

industry carries forward on its preliminary
year 1958, as a stepped-up
production

prognosis for the

the whole of

in automobiles will reflect in

;

in:turn

and

road;;

excise taxes that have,

emergency

war

sign of relieving com¬

Congress is showing tittle

carriers

steel

for other1 things

much of hope in them

great importance to the railroads and
the American common-carrier industry*:
-The

hesbt with
many

.affected,

the steel strike, in'which iron
ore, as-well
as
manufactured iron- and steel articles,5 'was
affected
Those" commodities are

course;

;-i'"

bonnet

would be line

It
of

conditions

are

particularly' the- lasf quarter1'

The last Half bf 1956 Was

the,,remainder of the year.,.Southern, itself, shoiildeuid
the year with earnings that will compare favorably with /
and stabilization
those of previous years.
'
\ .

through its wholly-owned trucking company, substitute'
highway service for rail service .and in coordination of
terminal freight handling.
f.

•

going forward. There snould be a satisfactory
continuance Of both planning and performance during

bouth

think of it as an important partj.of our
plan to provide expanded service to all types of ship-,
pers, especially those not receiving direct rail service.
The Central is also increasing its activity in providing,
system.

during the-balance of 1957p

planning stage and some: new industrial budding
been deferred but' most big projects planned 111 the

the

%•.''

•

The

persisted long into peacetime. Presently, the 3%
on freight bills and the 10% tax on passenger travel

promote

increased steel production

greater steel

activity
e.4'•
v-

v.r

- - •

Chicago and North

Western

rail'

our

'•••.'"'*■

Railway has

;

confi¬

dence bnpthe stability of American
business, exemplified
by its
continuing programs
of
modernization
and
meghanizationif'to -provide Pthe finest
transportation
service available; ;
■' ••
:rr ■- V
,jr

will

maintained

level

the

competent authori-

ing to studies of the matter made by
t l(^
—
— «
t
+1^a

remaining
"lnrlticTl4V
months
of1 the .year.
Substantial
for
wage
increases, as well as other
to the adoption
negotiated costs related
to labor,
Committee that wbuld'bpcit ttp wider areas of compeiibecame
effective on June
1, 1957.
These, labor cost increases together
with
the rising
price of lrfahyV.of
neecj a0d serves toda^-tmly to hamper them
in full
our,, major raw materials \ViH'iifia)ce
development as the basic mass transportation industry
it
difficult to maintain;,our profit
of the country for
peacetime,^requirements and W a.'-; »
margin during the secondvhalf of
timeemergencies. d - - y x\:r
the
year.
However, the \company p'
expanding national economy 'deserves" the best4:
F.
H.
Bonnet
should experience a very good yegr
trarisportati0n services that, cam, be rendered by all ;
and
the
result
should
compaie
modes of transportation. Free and fair competition alone
favorably with" the year 1956.
can
insure that such needs will be met by efficient
throughout

the

jpresident;/American

Earnings fop -the entire 1957 ybar Will' be good but
not expected to equal the
record-breaking results
of 1956*y' • • *.}:
'pr.•' ■: -:. ' p,..: •
.

•

DEAKMONT

June 30,

close the books

1957

our

of'

;'£dttkr.oat

with

cornpetition

any.

other

1957.

not

were

had

net

sale

income of $6,133

months ended

Eafning$ in the first
1957 fiscal year
large as they were .a

ago.

June

30, 1957, were the largest for
quarter in the company's history

any

.9%
higher .than > in,, the
period last year.
•
v. ;•
'
.i .Shipments^andlearnings in the last
fiscal quarter-will' be less <than in1
and

were

same
,

operations

the

ciuarter

expect the record to show the result will be equally
goon at j.:i>5o wnen we earned $4.65 per share of Clas

vacation

stock

just

ended

because

expected

after mandatory

of ;>

However, 'earning^—"Of
$2,597,000 in the three months ended

year

scdw6?j^dlitabb(.t- feilroads do not ask the privilege

President, Missouri Pacific Railroad Company
When

share,

per

six'.months; of; the

:Jcarriers," at mimoium-rates to users based on ability to

r;-;r

Steel Foundries

$92jl9L2t9.'iwhind

American

2$4.7fr

•

RUSSELL

Steel Foundries

are-

•

ciiarles c. jarchow

same

shutdowns,but. ..they pare

to be larger than in thequarter last year. The major
I'ytor /that-: continues to adversely

appropriations of net income

Charles C. Jarchow

same

Heavy snow, wind and rain storms
in the first six months disrupted our

operations

resulting
in
property
damage of almost $800,000. Loss of

Southwest' for the remainder* 6fpl957 dd<^ nature fleet
.Jyilie brighter l'bng-range"bfospects XbF"t%jwth and devel-

business because of

damage to crops
drought, and heavy; rains, and
delays
in
highway./and;;'building
from

"due

constmotion
conditions

of gross revenue

The

to adverse/weather

the

were

outlook

1957 is good.-

the higher

primary, causes
.

alt amative

Recovery;

carioad.ings'ahe-:,,

/ rnnbh needed moistiire, howeyei-, has y^•Vgi'O^t'lyyencouraged agriculture nil "11|

erating

revenues
Industrial development

continues to

1957, 107

grow

new

states with

Missouri

and expand.

industries

Pacific

territory

During the first half of

all

other

railroads,

our

laws

adopted
monopoly in the

when

weather"
seemed
be

and

good

savings,

results

indicate
even

the first

that

barometer

the

The

Chicago

and

fitzpatrick

North

half of

year

was

1957

quite

for

the

last

such

half
as

reason

With
the

this

consider all

about

national

read and

greatly

commu-.

resolved
DeButts

C. J.

tainty.

may

problems and

But there

some

seems

little

While

Fitzpatrick

reduced

flected
first

un¬

six

months

considered

unccr-

this

year,

our

and

tf^fck^
n

wW
w

Jljipact oji

trend toward reduction

our

expanding

our

machine

foreign operations.. In addition

foreign affiliates,

have royalty

know-how agreements in Canada, Mexico,

Argentina,
Britain,

per

Australia,

and

Union

Belgium.

are

Venezuela,
Africa,

South

foreign

These

p ;

markets

expected to average about $10.-

in the next four

year

and we do not

years

Our
of
so

diversification
moves
have provided
a
degree
stability that did not exist when the company was
dependent upon the volume of purchases by the

•railroads.

result, something less than

business, is with
over

90%

emphasis

the

railroads

10 years ago.

today

60% of our

compared

This is not the result of

railroad business but of expansion in

re¬

with
a

de-

other

fields.

Recently

the

Board

Directors,

addition to the

regular quarterly cash dividend of 60 cents, declared an

during the

fhyentones also has

Our backlog

1957.

anticipate that outside financing will be required.

construction

'i^voniies.

for the balance of

Capital additions

our

programs* now under way

for

parts

machined

and

pipe-coating product lines.

are

000,000

our

remainder of the year, we nevertheless feel
that indus-

doubt

forgings,

have excellent potential.

during the
easing of credit is
circles

The.bucklog and future prospects should

machinery, earthmoving, and farm machinery

orders is

Great

revenues

unlikely within financial
ucfiqp* gncl(highway

critically impot

home

precision roller chains and sprockets

springs,

the

Brazil,

encour¬

and credit restrictions have been

picture. There may be
adjustments" going on in

industries; there

opinion,

for the next five to 10

year

good

greater business activities in the
farm regions.. '

business

some

carloadings
our

year.

the

per

high level, though somewhat less than in our

production.

served

cars

•"'*

tb investment in three

age

needs, we must conclude that
things are pretty good in our over¬
"rolling

tool and

These crops should

improve

railroad and, in

nity
all

area

reduced acreage.

income,

sorts, state and local

Belt

good for the hydraulic machinery,

heavy rains having occurred in

Corn

car

notwithstanding

employment,

buyer

all

good.

fields to be

the present outlook is* that
there will be bumper
crops of grains
harvested this year,

existing demands
potential for goods and
services, Federal spending programs
and

crop

1956, fiscal

Railway serves in
Consequently, agricultural

affected

•

cause

lines,

When

know

seriously

Pros¬

certain.

may

The demand .for
is

During the recent past the western
regions of our system have been
engulfed in drouth conditions, which

the

make

buying will be good for the next
be less cyclical than it has been
These studies indicate a need of from 75,000

and

years

years.

role in its revenues. For
the last half of each year finds an accelera¬
tion of business on our railroad. .

certainly
likely \q\

one.

of
to

continues

have

bistovjcaUy.
.100,000 freight

will, for

Western

part a highly rural area.
products play a predominant

of ""economic

though not record-breaking
appear

debutts

fair

which

President, Chicago and North Western Railway System

this

effected

should

pects

Harry

being

are

few

use

from Congress at their next session.

furnish

III

time to come, be almost wholly absorbed in much

President, Southern Railway System
Railroads

Vvm. IN. Ueramus,

Katy

they

harry a.

come

in .'all of...our

great faith in the future of the railroads.
studies conducted by independent groups sub¬
stantiate this faith. The long term projection has indi¬

improvement expenditures. While the end results
be apparent to large degree in
1957, the rail¬
beginning in <1958 show benefits not only
from lower operatng costs but from an expected increase
in traffic volume.

enjoyed a transportation
country, so
that they can compete on
equal terms with other forms
of transportation.- It is
hoped that something construc¬

selling prices

Recent

1958

not

road

archaic

will

big disappointment of the year is the failure of
Congress to repeal the Transportation Tax and to relieve
from

improvement

pronounced

needed

The

tive will

business

Substantial

tions is very encouraging and, in our
best opportunity for railroads, to increase the utilization
of their surplus capacity.
-■
*

railroads

scrap

p'-5'

business

cated that freight

some

piggy-back opera¬
opinion, offers the

increase

Railroad is
going
through a transition period, both as to trimming costs
and stepped up maintenance; and improvement
programs.

The

our'

The response of shippers to

added

per months
delivered to the railroad, while the
railroads have been ordering about 5,200 cars a month.

normal weather

and thereafter.

principal need is for
traffic so we can utilize to the utmost our
physical
plant which is in its best condition of our 106-year his¬

the

a more

tory.

pattern,
should

capital investment of $26,686,440; 89 exist¬
ing industries expanded their operations with a capital
investment of $87,179,100.
<
Like

195? "llave

cars

the return of

located in Missouri Pacific

were

spring

Xnrlications
are that v/e will enjoy good Volume in this area of our
business for some time to come. The backlog 'of freight
cars on, order and undelivered totaled more than 90,000
on
July 1, 19$7. In the first nine, months of our fiscal
year, there was an average of about 7,800 new- freight

coh/v Russell/L/Pearmont
With op '
:'"b ^
../r?
abend,ttf the,S304.5 Million IfclS?** •>,?*

will end the, year

but

"R.'hlroad

Commission, if p.ur'forecasts Pre

rect,

product lines.

Commerd#'

Interstate

the

payroll costs..Tron and steel

our

high; level and there does not j
to be any foreseeable stabilizing, of scrap prices, j
a'result of these ever increasing costs. w.«e; had no I

dcclinp of ^2.905,000;
the last > half/ of,*.

ffeight^rati's/jtist author¬

the

continue

appear

for

Freight

granted, in

substantially

expected to b.e about the sam^^s
last six months M 1956, and/with;
ized

justment

prices

extra
.

'The

cash

dividend

cents.

present'backlog of $59,090,000

thb! future

dhcV for

make

our

T95o

and

prospects for

us^piimistUP for the balance of. 1957
viiar.

■"

ISflk Number

Volume

Six

■

'.t

tr •;

•

The Commercial and Financial Chronicle

(6toV 21:

arlbWtedA'

.V.W.'Pfi.

lany

i e,

2nce

periods of'*irreparable
unregulated .f

President
n

ac-

The railroads

vity

made

awu

mcir*iiiccu'-'iur

15%' freight;.rate inqrease in addition

rtev:

the iincrease

grantee! in December t956[. . At mid-year ,.it appeared
that; if' such increase vwere granted promptly,
Nickel 'Plate's,
^earnings r in 1957}.:.-.-p 7,
.«<

bipg

likely

5664

well

•

rfcvlPw

ve°a"-7 How^r.'^e^rate Tncreaw

Kilty

authorized.'.bv .ihe ; Interstate*.,Oorpj® vXi\ti
merce
Commission on Aug. "6.;.was:-$

tlat'e
the

disappointing.; This increase,, which

nary

effective,

:tion

amounted'

tion.

laydays ^notice,
7%,. subject to

certalii'exceptions, and hold-downs,,

rail-

which

>nfi-

Nickel

iiiecl

result

may

increase

freight

4.5%

**-

every

the

■-*"

■

ic-Tv*-

possible curtail-«

traffic! outlook,

further

transportation .should

public-alike should

will be about

year

contrasted with $23,750,000 for

average

net "income

during the

ri.!.w

,«■

1956r Illi-,.

preceding

^ \10 years was $-2,z50,000.
The long periods
to

operate at

;

auring^rhich railroads are compelled

ever-increasing costs due

; To Uliis end pse^s'-Pf rail ;
kuppor.tkevery "effort to correct*'

financially J

industry

Illinois Central net income for the

#>dl

large segment of subsidized com¬
petition 'in the' transportation .field, "It is iu the; interest;;
of' all users of tali transportation |tp keep the' railroad;

industry, including

ec?^m}^ which; may be;.realized' and the inadequate,;.
rates which have been allowed, it is anticipated; that ,

revenues.

this

effective

than

Plate's

y.isw to making

Giving consideration/to

:hois Central
*.

•

ment not, inconsistent with safe and efficient operation.-:

$19 million

about

Programs with

-ted.

,hc company's, maintenance. and expenditure.^

will help to ,do this,

this

press

legislation

will

continue

the

to, enact

late"

little, too

"too

the;-Railroads have had to live too

situation with which

long.

!vigorously for prompt .enact¬

of this much-needed 'legislation.^-Failure

ment

to the continued
rr
.jjlull

legislation '
'incju^try apd't

.inequitable situation." There is at 'present

before Congress which

1"7

*uv-'r'v:

'.v- n-

Continued

v';

on page

result, the fulfillment of earlier
predictions will depend in large pa:t
upon what
happens,' in
the steel,
a

and

ition

automotive

tries

this

.of

and

during

construction

indus¬

remaining

months^

the

In the firJt

vear.

F»»lix S. Hales

hx months

1957,

Nickel .Plate- :revenue- carloads ' of; freight de¬
7.9%,-compared with die corresponding period
preceding year.
Operating revenues declined ;
1.2% and, as a lesult of the continuing increase in oper¬
ating costs, net income declined 17.8% in the :ame period.; : July carloadings increased 10.9% fov6r. the Same'

■

■>!':s-

clined

but

suits

133,-

the

month

sin ,-.1956; when

strike

the

steel

fv;.; '*

i':5. ,v»

tii-l

ufii

;

industry

severely affected freight handling. At th*> r'o^p ->f
carloadings for the first seven months still lagged 5.8%
behind those for the

The

ail roads

rates to

the

year.

increase

15%

freight

improve the pitifully low 1.95% industry rehmn

invested

period last

same

requested

threatens

net

capital
railroad's

the

1956.

ability

return

sma'l

provide

adequate
service in peacetime or war.
Future car supplies .'and
improvements to rail systems are tied directly to earn¬
ings; and The hread and water diet on which the railroads
presently rare forced to subsist limits car-building and
improvement programs. ' •

One:; waV" of increasing earnings is
soon

ra+es

rare

•
..

wage and materials costs rise; The railroads face
seven-cent hourly increase in
wages, plus, an uoward

cht
a

cost-of-living, adjustment,

next Nov. 1.
As suggested
the Commission in i s recent
decision, another rate
increase most likely will be'necessarv to meet
these

an cl

em-

ad-

d el e d

increased: co^H

-"■not

H earnings.

rices
d

our

;

finance

E our

eight
10,000

subsidies

rates

late

ships

the

sub-

•'

equalization of

regulatings

railroads .and their competitors.
Despite
by. competitors, there are numerous

received
in

which

their

prevent,

the

railroads

competitors

out-moded

reductions

couM

and

charge

still

make

regulations*

lower
money.

many. »cases

the grounds these wouM

011

their

competitors.

changed if the railroads
in

bads,

■

the railroads have not been
permitted to make proposed

fiscal

onth.

■

than

Under

of relief is the

area

H applicable

eight
i

prices of rolling stock and
rise, making it doubly difficult
equipment, and .improvements out of

new

Another

instances
tions

Moreover,

materials- continue
to

;crap

the

and

economy

public has

Such

to occupy

are

provide

the

right to expect from

work

conditions

hard¬
be

must

their useful place

services

which

the

them.

in di-

WAYNE A.

been

JOHNSTON

President, Illinois Central Railroad

5,000
lo

The

Illinois

Central Railroad,
in common with the
whole, is being adversely affected by the
impact of inflation.
Increases in costs of

industry
ckets

as a1

tremendous
both labor and

our

materials,

without

adequate

increases

in railroad charges to reflect these
.increased eosts, have created a situa¬

|iouW

tion

for

unhealtbful

the

financial

well-being
of
the
nation's
transportation system.

nery

klog

basic
\

ANOTHER

Net income for the Illinois Centra*

hine

the

first

estimated
.

■ition

yaltjr

1957

uela,

creased

however
lesser

million

the

from

principal

income

net

year

^ayne

sion

Johnston

not

Aug.

freight

duce for the Illinois Central
?gree
was

the

If our

1 with
de-

bther

$11

million

for

increase

:d an

for

1057

expenses.

1° obtain

will

hoped

was

Such

k'Venues which would

cars

;

costs of

way.

that

it woul I

deliveries

completed early

are

freight

fleet will total

car

will be

industrial
must

possible

10%, with

area

have

such

rail service that not

the Southland

continue to grow and

only is geared to

anticipate the needs
money

and commit the

to be ready for future require¬

well.

6ur modern, enlarged freight car fleet
is

one

of many

provide

"tools"

we are

using to

ever-improving

better,

basic

•

prosper

cer¬

is economical, dependable mass

transportation. This means adequate

nearly reflect the increased

can

handle the tasks at hand. It must also

rapidly expanding
as

because

transportation

begin to do the job. And it means

ments

new

put in service since 1945.

mass

the

transportation for customers of

railway that "Serves the South."

providing rail service.

months

Central

ago due

ducted

the

estimated $2714 million.

One of the things a

rates which

allowance would have produce J

other form

pro¬

increase of less than 4%,

increase in rates of at least

tain exceptions.

1957

ni°dities.
3

which

This adjustment

year.

fleet is

57,600 units, half of which

6 authorized increases

charges

next year our

has been allowed is
simply not adequate to meet spiral¬

Illinois
the

car

have ordered 2,650 new

to cost

When

ago,

reason

cars

The Interstate Commerce Commis¬

$10.-

and efficient railroad service,

multi-million dollar addition

freight

This time

amounting to $6,500,000.

expenses

our

$3,200,000, compared
with slightly more than $12,600,000
in the corresponding period of 1956
Revenues
during
this
period
de¬

frica,
rkets

months of

seven

demand

studies
a

balance

volume

approximately

reduced

Recent

indicate

curing the

traffic

for

which

the

for

6.5%
coal

the

first

under

and

seven
•

other

com-

railroad, has

President

con-

possible: .upward "tTenc|.:iiy! vplupne '
of the year. The, increase, in, traffic,

year

SOUTHERN RAILWAY SYSTEM
'

-*i

>T \

1 I •'« ■'

uiicumrTAu

WASHINGTON, D. C.

£!t!i«yi»

Financial Chronicle

The Commercial and
22

Thursday, August 15, 1957

(698)
\

■

iContinued from page

■

the
the

'operating

gross

started

looks

good

about to start.
in

vest

the

expect

anticipate

From these reports
increased • movement

last year.

over

territory

Ernest S. Marsh

with

ported good. Pastures generally have
good grass growth and are supply¬
ing necessary feed. South Dakota is
John

expected to have

P. Kiley

of its largest

one

An increased movement
of cattle to market is anticipated.
Movement of meat
and packing house products should also show an increase.

hay

crops.

products of mines, we expect about the same ton¬
in coal as in last year, with increases in sand and
gravel of at least 10% account road construction.
In products of forest, it is expected that the movement

lumber, shingles and plywood will show
In

manufactures

This is
with

ucts.

agricultural

machinery,

there

miscellaneous,

implements,

automobiles
goods.

cement

has

been

iron and steel prod¬

and canned
that this increase will continue.

the surghum grain crop could well

and parts,
is expected

agreements were made effective Nov. 1,
three-year period with all groups, both op¬
erating and non-operating employees, amounting to
$7,500,000 annually for the first year with further in¬
creases
to be effective Nov.
1, 1957 and Nov. 1, 1958.
The Nov. 1, 1957 increase will add approximately $700,000 to the payroll for the remaining two months of
wage
a

this year.

areas.

Industrial

relatively good pace.

addition, all of the agreements provide for a costof-living escalator adjustment provision based on the
price index of March 15 and Sept. 15. The effective
date

of the

first adjustment was May

increase of three cents

wage

month.

escalator
The
No.

From

all

15%

indications

all

increase effective Nov.

increase in

206,

meet

present

hour

will be

another

1, 1957.

freight rates. authorized in Ex Parte

effective
of the

1957, resulting
or $150,000

per

there

Dec.

new

28,

1956,

expenses.

not

was

adequate

The prompt granting, of

freight rate increase sought, together with the

expected increase in traffic volume
a

indicated, should

favorable outlook for the remainder of the

year.

KNEEN

Our passenger car
months

equipment business during the first
has

1957

maintained

fairly normal

This has been, in general, the result of substantial

orders for material for

new

building and remodeling

car

programs" in Canada, Mexico, Cuba
and

With

the

current

considerable

siderations

railroads,
creased

generation

activity in

order

1956.

year

$1.56

and

Aug.

manufactured
by
have purchased
Motor

they

variety

wide

are

accounts, should

estimated that our

currently

will

well

equal, and may be
It is not expected
that the heavy
Commodity Credit
Corporation movement in late 1956
to

marketed

also have very extensive railroad

use.

fruit is

Even
not

1956.
though ah anticipated freight rate increase

come

early

wages

enough

and

under

continues
units

being; put

weighing by Howe with

dependability is
scales

for

our

and

President,
At the

Outlook

Boston

Issue"

The

With

use

for railroad products.
amount of

new

summer, and we

are

carriers

form.

has

year

little

to date
continues to

the

look

passenger

regional

welcomed

track

the

and

accelerated

are

Patrick B. McGinnis

Interstate

lished

mission

recently

announced

bentures

issue

cent

exchanged

the

substantial

electric

de¬
The

backlog are re¬
for diese

orders

locomotives

purchasing
railroads.

diesel

which

relie

of the programm

diesels by Canaaia
the • export ^ark •
completed an prderT

of
In

the company
25

backlog.

Included

units

for

the

Argent

Railways in June and co
tinues to promote locomotive exp j ■
sales.
It is
expected that a pe
locomotive
output will
be ma
time and that an increasing volume
State

Miller

Com¬

nearly $30,000,000 in
for preferred stock.

the continuation

changeovei

production.

maintained

order

reduce

that

the

with

Output wii
high
leve
throughout
the
remainder of tn
year
as
indicated by the curren

has authorized the Boston and Maine

manufacturing equipment this past

has

1951

diesel

W. G.

Commerce

Works

passenger-train miles in order to put
this
type
of
service
on
a
more
The

Limited

Works,

completed a hig'hlf(
successful first half of 1957.
Earnings and volume a
shipments increased over the same period oi 1956, con¬
tinuing a pattern of Vear-to-vear improvement est^b'

rail

equitable level.

througl
tf

stronger industry

MILLER

Locomotive

increases

gained

strength

and

WILLIAM
Montreal

continuing in

program

carriers

diversification, thereby creating
serve the
public better.

forward

fare

logical solution for the survival of the railroad
seems to lie in the direction of the combina-

The
tion

for

progress

and

industry
1

The Federal Govern¬

made

continuing discussions on every¬

are

from port differentials to thinking ahead about
competition created by the Government subsidized St
Lawrence Seaway.

Financial

and

detec¬

thing

the Boston and Maine, have been

and we expect this trend

our research efforts.

Railroad

in the "Annual Review,

"Commercial

the

Recent

Our plant has received a consider¬

Maine

year

hopefully to concrete legislation
thp next Congressional session.

substantial backlog of orders

increasing

.brings

McGINNIS

and

industry

Electronic

cf Howe

some

the

consideration of all present-day
indications, we

expect to go into 1958 with

year

the railroad scene.'

Chronicle," I mentioned strict Governmental regulations
in the railroad business and the
immediatq necessity
for the correction of these iniquities

high degree of accuracy and

increasing,

this

daily

Eastern

Street

service

beginning of the

motion weighing

development.

available.

now

railroads is

Chicago-North Pacific Coast Vista-Dome
excess of $3 million.

to continue.

able

television, electronic hot-box

industrial

tors, roller bearings and cycle maintenance of roadway
a <; few
of the technical improvements appearing

rapidly growing

of the4 Northwest."
improvement pro¬
Eighty additional diesel locomo¬

apace.

through the Sales Division of

continuous

with

„

The industry

are :

pace

puters,
may

from

individual carriers.
continues to actively study and exolorc
new techniques and tools in trying to-improve efficiency*!
Technical improvements, such as radio, electronic com¬
among

are

costs,

revenues

there has

Accordingly,

the creation of a government agency

over

be sufficient to offset-in¬
Northern- Pacific's increased
oil and gas, timber, real
estate rentals and minerals, should result in favorable
over-all earnings for the year.
"
•
-

creased

ment

equipment

Products of mines also

tonnage.

providing increased tonnage

sources

common

business.

expected to partially offset the anticipated

reduction in grain

subsidiary, The Howe Scale Co., whose products

Safety Industries, has track scales

risk capital available to other*
been a proposal for
to provide capital
at reasonable interest rates for freight car financing.
The pros atnd cons of this plan are being discussed

despite reduced wheat acreage, favorable
growing conditions have produced a total gain crop in
Northern Pacific territory somewhat above 1956.
How
much of the crop moves to terminals late this year will

marketed

r
e

}

early winter movement of grain.

Hamden, Conn., plant.

to railroads are

Robert S. Macfarlan*

terminals

storage

However,

Kneen

industrial

tap

couptry

reoccur." Furthermore the shifts

in acreage

and

general

the fall and

Will

products of Star-Kimble.

the railroads are still looking to iheM

tract, quantity

year.

Montreal

been completed on the multi-million
rolling stock and we have accepted

tfrom wheat to flax and barley resulting from
heavy enrollments in the soil bank will adversely affect

from

last

PATRICK
H.

and agreed rates on merchandise.
| £
There is an active increase in plans for the creation^ ei
and
revitalizing existing State Railroad Associations,
in order to provide up-to-date railroad information toj lc
legislators on4state and regional levels.
ahi
Because the average rate of return for the nation's^
rail carriers is still less than 4%, they are not able to *i

below

North Coast Limited costing in

Production of this equipment will be integrated into our

Our

up some¬

grain tonnage in the last half of 1957

ment

Division

motors and generators are key

while

shape

•

day when they will be able to compete for the nation'sif
transportation business under the same set of rules and.c
regulations as other carriers. If American economy is c
to have full advantage of the inherently efficient serv-J
ices' the railroads are so able to perform, then it isf
essential that they have the right to make bulk, con-f

the

for

prospects

complete dieselization. We are buying or build¬
ing 1,450 freight cars at a cost of nearly $12 million and
expect delivery late this year on new passenger equip¬

thing like this:

tive

Miehle-Goss-Dextor, Inc. Brake
motors and brakes, induction heating
generators,

was

of stock as
share last

nearer

supplement the prod¬

Stor-Kimble

income

Industry-wide,
of

from

and

Net

year.

gram

accelerated rate

heretofore

Safety Industries,
the

$1.48
compared with
to

Northern Pacific's modernization and

in 1958.

ucts

half

equal

meantime,, to keep
economy
along ^the "Main

for Safety products

continuing at

off

approximately $1V4 million from the
first

partial delivery on fifty new 1750 H.P. engines. A
gradual shift in the maintenance of roadbed into cycle
program
has produced immediate savings.
As 27%,
of the Boston and Maine produces 7.4% of the freight^
revenue, it is the policy of the railroad to make this^
27 % as fine as any roadway in the East.
' V

six

In the

the part of major U. S.
look for greatly in¬

demand

our

order

dollar

during the last quarter of this
and

new car con¬

has

Delivery

were

products,
operating revenues

ivs

next quarter.

other costs.

principally to reduced movement of lumber and

months'

that
the
transaction
"means a strengthened carrier, better able to meet the m
pi
transportation needs of the public."
Plan I
Piggy Back service to the West has been •
inaugurated by the Boston and Maine and it's expected
that this new service will grow measurably in the
"

Due

nonoperating

Brazil.

^ granted
will substantially lessen the
income tax liability, the Commission
_1.

Commission*" concluded

The

;

a
reasonably satisfactory first
leveling off of business generally,

and increased wages and

and

seven

.«

stock arc not#

had

half of 1957 despite a

Federal

said,'since interest payments on debentures, including
scrip, are tax deductible, while dividends on preferred

•

depend on the relation of the cash price to the CCC
loan level. Increased production of sugar beets, soybeans

President, Safety Industries, Inc.

rate.

Pacific

Northern

.
,....

authority

•

MACFARLANE

The

road's

record in

ROBERT

...

activity in Santa Fe territory continues

last half of the year

the

before us."
uei.ui.c
us.

received,

establish

some

manufactured

New

1956, for

per

moisture

normal

Texas.

and

■

_Ll

severe

particularly true in the case of sorghum grain,
bumper crop expected in the states of Kansas,

Oklahoma

and

President, Northern Pacific Railway Company

and

increase in commodities such

the

applicant's revised forecast of future earnings."
the Commission said, "does not appear to be unduly
optimistic when considered in the light of the sub¬
stantial: and permanent changes in
operations which
have
already been made, the promise* of increased Bii
revenues
implicit in the growing economy in the
territories served by the applicant, and other facts now

last year.

over

the

"The

at this time last year

increase

$300,000.

agricultural picture is somewhat brighter than it
because of the better rainfall.

The
was

nage

alleviation

been taken by Boston and Maine to
improve the physical condition of the roadbed, track and
structures for a three-year program- initiated in 1956,
for application of electronic equipment to. its accounting
department, with estimated annual savings of about

present level.

drouth should maintain their

freight

lavorably

steps which have

Santa

its

•

commented

also

Commission

The

slightly

good,

generally

are

toe

conditions

Economic

Livestock in hll territories are re¬
a

and

revenues

modernized

completely

have

will

equipment."

the

during

1957,

year

gross

completely dieselized, and before the end of

now

1957

ahead of 1956.

•

■

the

balance

business

level

good

during May and June.
look forward to a continuing

Columbia River basin is

getting started.

•

by unprecedented rainfall and high
water conditions in Texas and Okla¬
homa

...

■ •
• '
'
operating expenses was
occasioned
by
increases in wage
rates, costs of materials, payroll taxes
and damage to facilities occasioned

with a
Oat qual¬
and harvesting is
general potato har¬

Commission said:

vastly improved railroad as compared •-with that which
existed during the 1945-1954 period used in computing
the average annual amount available for fixed charges.

The rise in

good yield being reported.

ity

Commerce

management, which assumed its duties in
1955
has initiated many activities which promise well
for the future.
The present Boston and Maine is a
"Present

penses.

areas

some'

was

the Interstate

months of last
higher operating ex¬

because of

made after the , Commission had
reconsidered an earlier rejection of the plan in the
light of new ■ evidence. , In commenting on the decision

authorization

first six

the

year

•

has

revenue

that

affected by
decrease in traffic volume and also the failure of
5% freight rate increase on Dec. 28, 1956 to offset
higher wage and other costs which took effect on
Nov. 1, 1956 and May 1, 1957.
Growing conditions are generally
good throughout most of Milwaukee
Road territory. Harvesting of wheat
the first six months was

for

income

Net

MARSH

'E. S.

•..,

Ry. System
for the Santa Fe
Railway in the first six months of 1957 were about, two
and one-half per cent, ahead of the 1956 figure, net in¬
come for the system was approximately 16% lower than
Although

•' p

President, Chicago, Milwaukee, St. Paul
and Pacific Railroad Company

the

-j

President, The Atchison, Topeka & Santa Fe

P. KILEY

•

tained for

business
While

some

for

service

MLW

locomotive

products

maintains

its

experienced.
position in
continues to inci

will be

excellent

market, the company

lad

business for & growing range of diversification prod-'
u rtaifer.t"ouipu.t. ot thermal and inausir.ai products ;
ill be achieved in 195rr coniribuang to the companyV

terminal yard,

;

eht

;ts.

ion

the industrial growth of Canada, while
increased stability ana potential.

aticxpauon in
in

suiing

veil
is

lic

MURPHY

Burlington

President,

ting

Lines

the first six months of h957 fell
expectations, the Chicago, Burlington &

Notwithstanding

ges.
1 oi

ort

ight

our

uincy Railroad views the outlook for the
ar with
continued optimism, based on

the

cheating a general

2
to

isincss in many

and

balance of the
early reports

ting

states,

pAhris, though hot critical, will 'ultimately* be nee-'
essaiy
if we are to expand our services with the
growing territory! '

was

the

rate

increases

Commission has failed

A.
Chairman

authorized last

meantime, three

wage

year

and

Car

Chief

Corporation,

Limited,

the

Officer,

!37.

hich

tions

past

months

with

satisfactory

ased

itisfactory crop production in

the

by the ICC. In

have received

inquiries for substantial new business.

Continued

Buri-

eaoily.
•..
present estimates for the last
1957
indicate both freight
,

half
and

pays

Harry C. Murphy

will exceed those
a similar period
of 1956, but despite these increases,
t income is expected to be 5% less during the balance

sserwer revenues

ctioii

{his

for the comparable period last year,

than

year

the

rate increases granted in 1956 did not offset
;ing' costs of labor and material and provide necessary

been

Ship and Travel

forking capital lor the railroa.i industry. The carriers'

eight

2cted

tition for iurthcr

the

been

released

This supplemental increase may take care of
creased wage and material costs to date but will not
iset added tax and wage costs later this year,
6.

ig.i

illion

apted
At

increases in freight rates ancharges

granted in part by an order of the ICC

Santa Fe all the

way!

Burlington freight car requirements for the first half
1957 have been met satisfactorily, with the exception

cycle

cars for sugar and four
demand for box cars durithis
g peak loading periods this Fall," and the increased
e
ot
covered
hopper cars by cement "manufacturers
o
the
rvej by Burlington is expected to result in a demand
tion'sf v this class of equipment during the third and fourth
s and barters..
Burlington acquired over 750 new freight cars
my he iring the first six months of 1957, with 880 additional
sery-c ,rs scheduled for completion during the remainder of
k is.-.t e
year.
Approximately 750 cars are also programmed
con-j[ r heavy repairs in the shons this year.
d Burlington passenger traffic is expected to hold up
-atiofl) ell for the balance of 19o7. Two new Vista-come Denations^ n< Zephyrs providing through service between Chicago

nding.

shortage

occasional

■eight

We anticipate heavy

■

011

iC{ Colorado Srings are being very well patronized.
1f hese -trains have -t*»e newly-designed Slumbercoaches

tojj

ition'sj
ble to

\QS

for

end

apital

very

popular.

development and the location of new inc.usBurlington territory has been quit-* octive-^-a

last six

will continue through the

anticipate

onths of the year

ncmg.

The

:ussed

new

modern freight

.classification yard at Chicago

icero) will be completed and

ieney.

ltomatic movement of cars,
and

speed

increased

rough the

rletec-

idway|

sts, and regulations

rnringj

spite of continually

freight

increasing labor and material

which adversely affect
confident that we will

industry, we are

have

in classification of

terminal.

rvice

com-]

put in service this year,

yard will have the newest electronic devices for
and will result in improved

his
colore

are

Industrial

other
al

bich

the railcontinue

favorable year.

wery

about
St

RUSSELL

President,

half

ilroad

"In the

ibina

th fell

behind

rougl

adings,

was

try ti

first

Southern

and earnings

Freight volume, in terms

1956.

not allowed
to increase freight rates sufficiently
to offset wage increases and rising
costs.
The interim increase which
was
granted December 1956 on in¬

lighlh
oi

"Moreover,

terstate

com

estab-

wil

rates amounted to less

th<

higher productivity through
complete dieselization and further
mechanization
have
been
outdis¬

re-

tanced

peat
main;
me

costs,

and

dependable to

railroad
is the

use

only one

and Santa Fe

only railroad under

one

management
■

linking

►
•

•

PT-

Chicago and California
and Colorado and Texas.

such as

steel.

shape up as

Higher rates

helped some and an unusually mild winter without
mes, heavy snows or major flood damage kept costs
am
climbing higher.

fP1

ixpoi"

ave

arket

con-

increased

"The year does not
bad year, although not as good as last.

iadiaf

mtin<

for fuel and

•eflec
mmet

rates.
produced

liesel

increase in intrastate
"Meantime,
economies

urreni

than

because of holdowns on a num¬

any
leve

■

Si, si, chico! It's more convenient

were

important products and a
number of states have not approved
ber

movei

of car-

6 to 7% lower, chiefly because of a downshipments and revenue losses following
weather
damage to
perishables.

in lumber

are

Pacific Company

this year business

(height dollar volume, with the recently authorized
a?£?ase in freight rates, should equal that of last year.
ffT. *s year Southern Pacific and solely controlled
'

SANTA FE SYSTEM LINES
Serving the West and

Southwest

BJiates will spend about $125 million for capital

imequipment, prin-

avements, with $71 million for new
Pally freight cars and diesel units.
We would like to make more improvements

along

n
t In¬
■
•es' -and would be spending about
crease ho le if we
i
had the earnings.
Some projects, including

$15-20 million

At this

greatly reduced and our customers have not yet

increase

continue to

oveir>ents

during

placed orders for their 1958 requirements, although we

Trailer-on-flat-car

territory.

igton

now

Steel

Canada.

results.

mid-

has been increased in
Indications of improved conare
seen
in the generally

that

1958."

National

Montreal,

urlington

sub-

long-term

feel

time, the future is uncertain as our backlog of orders has

mount.

and costs continue to

to favor; a business

1957,
and

SHEARWOOD
Executive

have taken effect

increases

favorable

high rate of production has been maintained

been

to act on

are

pickup in business volume is probable in

disappointment m this respect.

California

seem

remainder

the

prospects

ago,

year

various

two

greater

quite

"The

during

growth

"The rate problem is one that cannot be too strongly
emphasized in assaying the business outlook for South¬
ern
Pacific, * Failure of regulatory commissions to act
with reasonable speed and to grant adequate relief has
been a
definite handicap in producing a fair return
on investment and enabling expansion of facilities. The
Interstate
Commerce
Commission decision of Aug. 6

;

"Although prospects do not

upturn

Such

western states served by

ostein and

duly

than

cars

production

hile

•gs,"

produced

has

Movement of

lout

irnprovemehtk and expansion of CTC and
postponed.

other electronic control equipment, have been

iintry.
The winter wheat harvest in west-

956.

improvement in
key sections of the

(699)

r;Number 5664';. : : The Commercial and Financial Chronicle

olume 186

page

The

The Security
.

I'm:;

\vell
off capitalvvise. In my opinion, the
best place to look for such situa¬

in an industry
the reasonably early
stages of a dynamic growth or one
where the handwriting is clearly
on
the wall that it is on the
threshold of such a dynamic ex¬
pansion^ Furthermore, to find the
"cheap" situations in such indus¬
tries, it is necessary to go some¬
what off the beaten path, paying

attention

particular

Thursday, August 15,

1957

out¬

year,

,.u

I estimate sales

nevertheless
Barnes:

■

Dr. •

others),

have

mostly

for

selected

one

rea¬

Bowling ;, Barnes,
50; President .of the company has
been devoting his efforts to infra¬

son:

red research and development for
30 years

over
more

about

and probably knows

infrared

and

its

po¬

tential than any other human be¬

ing.

Further,

the

company

has

manage¬

the

the foot of which in

ment at

the

standing speculation on the future
of the avionics industry in this

Barnes
Engineering
Company
in excess of
$14 million and earnings of over (traded over-the-counter) is pri¬
Inc.
$1.25 per share on the number of marily engaged in the field' of
ing.
In the fiscal year q n d e d
shares currently outstanding. The
April 30, 1953, the company's first
instrumentation, which
external ' expansion accomplished infrared
full fiscal year, sales of $1.8 mil¬
during 1956 has immeasurably combines electronics with optics.
lion resulted in a deficit of $20,000.'
While competition is rough (Aero¬
In the fiscal year ended April 30, strengthened the company's com¬

which is:in

the record,

of Topp Industries,
must be given a very high rat¬

management

either:

tions

On the basis of

available at about 14, as

officers and directors of the
company...For the current fiscal, country.,
by

Topp's consolidated sales.

will find himself very

course

dend paid early in July there are
velopment of new inserts and new;
uses for the^present inserts.
Heli- now approximately 592,000,shares
Coil accounts for about 30%
of but, of which over 22% are owned

I Like Best

jet General, «Beckman, Eastman
resulted petitive position and financial po¬
Kodak, Electronics Corp. of Amer¬
$943,000 sition is strong, the company hav¬
ica, General Electric, Haller, Ray^
(margin 10.5%). and a net income ing sold to the public last May-a '
mond
and
Brown* [see
above]
equal: ,to $0.82 per jshaye on the ( $2,750,000 issue of 6% convertible'
weight. The coippaby• believes,that
subordinated debentures due* in Minneapolis-Honeywell,
Perkim
p69^OO0 ' shares then Outstanding.,
this market can and will be ex¬
1.977. All in all, I regard the com¬ Elmer, Philco, RCA, Texas Instru¬
Giving effect to a ,4% stock divi¬
panded through the successful de¬
ments, Westinghouse and
mon stock of Topp Industries, now

•
t"

••

1957, sales of $9 million
a
pre-tax income , of

for this type,of insert
which provides 2^2 times the orig¬
inal thread strength at a saving in

enormous

2^.

.Continued from page

Commercial and Financial Chronicle

(700)

the responsibility
fulfilling the potentialities of

last analysis lies
for

any company.

of this article, I

For the purpose

two companies; one

have selected

primarily in the field of avionics,
which is electronics as it pertains
to the field of aviation, including
guided missiles,:and the other pri¬
marily in the field of infrared in¬
Avionics

strumentation.

tainly in a period
growth which only

cer¬

dynamic

de¬

severe

would interrupt, while
infrared gives every evidence of
being at the beginning of a period

pression

mushrooming expansion which
become full-blown within
the very near future.
could

Industries,

Topp

(traded

Inc.

which

over-the-counter)

pri¬

marily engaged in avionics, oper¬
ates
in
three
divisions.
Haller,
Raymond
and
Brown, Inc., a
wholly owned subsidiary and the
of

center

nerve

the

entire

com¬

is a research and develop¬
ment
organization
employing
about 330 scientists, engineers and
pany,

supporting personnel. Located at
State College, Pennsylvania, it was

early in 1956
155,000 shares

acquired by Topp
approximately

for

Topp

key acquisition

stock—a

that among

other things R. & D.
in production
contracts for the : company's two
production divisions. A large part
in

will

work

result

of the work of HRB is highly clas¬

arid

sified

discussed.

cannot

However, it was reported in a re¬
cent edition of the authoritative
trade

magazine, "Aviation Week,"

that the Civil Aeronautics Author¬

ity and the controllers of the New
York City Air Route Traffic Con¬
trol Center were extensively test¬

developed
im¬
to be transmitted over ordi¬
telephone wires and which

ing "Rafax," an HRB
system which permits
ages
nary

will

have

many

the

current

and

radar

applications

fiscal

In the

ended April 30,

year

upcoming prob¬

lems of air traffic control.

1957,

Brown

<of Haller, Raymond and
accounted
for
approxi¬

mately

18%

revenues

consolidated

the

sales of Topp Industries as it is
presently constituted.
Topp Manufacturing Co., located

principally
area

the

Los

Angeles

of southern California, is the

company's avionic equipment pro¬
duction division. Among its niany
products are highly technical sys¬
tems for control of guided missiles
as

well

military and

commer¬

cial jet aircraft which fly at such

speeds and under such conditions
as

render

human

sales

inadequate ordinary

abilities.

fiscal

1957

Topp Manufacturing

counted for

ac¬

than one-half of

the consolidated sales of Topp In¬
dustries.

Heli-Coil Corp., located at Danourv
Conn., was acquired in November, 1956, primarily to supply

the

company

with

earnings not lamely

tracts.

Heli-Coil

source

dependent

government contracts

of
on

sub-con¬

principally

pro-

formLa.mre °f Patellted Precision
Sen S ^ade steel diamondfrom
shaped
stainless
phos-

Thorough,

fnsmned0"2!6 W"'e which may be
installed
previously
tanned
oversized holes.
The market 's

combustion takes place when the

even

new-

shows how

edges of fuel spray catch

type fuel is sprayed into diesel cylinder from injector tip.

fuel is ignited evenly as

Noncombustible fupl particles have been treated with addi-

insures efficient diesel

•if-*

five

that

now

}

)

comes

operation

t »

fill tne] fpql hpinfc thoroughly. Illustration

keep

your

freight costs from

fire first.

...

^es|J

injector. N|
and costs less. 311

from the

skyrocketing.

Volume

186

Number 5664

The Commercial and Financial Chronicle

masterfully managed and fi¬ fftain it will do almost anything explored.; However,'it is known
through its research and radar will do—better and much to be of material importance.
development period, so that now cheaper, and it seems probable
Naturally,' the' confidently, airwhen learnings are about to' roll that infrared systems will replace ticipjated
p e t I;od gof dynamic
some
in there are only 299,570 shares of radars in
applications and growth of infrared which lies in
stock outstanding.
» -■
supplement it in many more. In the immediate future will be of
been

too,

nanced

Not too much is generally known

the field of civilian usage, the po¬
tential is'vast, Chemical compa¬

about infrared, and for the reader
who desires a
good basic back¬

ommend

1957,

editions

minute

analysis

can

"Aviation

temperature

changes

infrared instruments.

use

can

Gener¬

ally, the field of industrial appli¬
cations

military point of

chemical

obtained through measurement of

appeared in the March 4, 11, and
18,

share to

precise

series of articles which

Week." ^From

much

view proponents of infrared main-

r e m o

.has

measurement

temperature

scarcely

been

say,

Besides

benefit

material

Barnes

nies, oil companies in their refin¬
it will to,
ing processes, and others where'

ground of the subject and a knowl¬
edge of its capabilities and some
of its limitations, I heartily rec¬

(701)

been

but

rating, and the common stock now
available at slightly over 6 repre¬

' Y
year

which

opinion, .one of ,thty*
speculations for'
rCally substantial capital appreci¬
ation over the next year available

sents, in

ended

Julie

30," 1957, was,the first prof¬
itable year in the company's his¬
tory.

estimate

that

pre-eminent

most solidly based

approxi¬

mately $0.40 per share was showrt.
It is impossible to estimate results
for the current fiscal year because
of the many imponderables-^-but
there is a good possibility that they
will mushroom. The company has

per

General Electric,
a

has

j; The fiscal

Engineering than

holding

surface

the

scratched,

in the current market.
"

"It should he remembered in con¬

both

sidering

stocks that we are

these common
dealing for the

most part With

products not com:
position in the field of infrared
prehensible to the average lay¬
instrumentation, Barnes Engineer¬ no financial problems, and when man, including the writei;. In the
last analysis we must rely on the
ing is also heavily engaged 'in the time comes that substantial
respective managements to direct
the field

through

of industrial automation

its

"Multra"

and

new

trol" divisions. I believe that here,

capital is required I can fore¬

see

"Bino-

ment

difficulty.

must

The

given

.manage¬

top-flight

affairs of their companies in

the

such

is left behind, and the
pitfalls in the path of bur¬

many
-rrf+n

that the competi¬

manner

tive pack

geoning concerns are by-passed. A
be
had by looking at the past, and

basis for seeing the future may
the

the

record

last live years-

gives a strong indication that the',
managements of both Topp Indus¬
tries, Inc. and Barnes Engineering
Co. will take good care of their
•••'"•

stockholders.

w.vg.w, ;•

'»**"" •' I '••; >*•••'

•

i■

fWw.

v*'.rJ'fs.V'"1 •••'•*+a?*;

Securities Laws &

Regulations Subject to
Briefing Conference
Association

Bar

Federal

The
//

briefing conference on
securities laws and regulations in
will hold

Central research "strikes oil

with

cooperation
the

by discovering a powerful new diesel fuel

the

Affairs Sept.

National

Hopkins

Mark

Bureau

6 and 7 at

Hotel

San

Francisco.

the

Among
cussed

subjects to be dis¬
Objectives

Current

are:

the Securities &
Commission;
Mutual.
Selling
Literature
and

and Programs of

to haul your

freight

efficiently

Exchange
Funds

ship by the Central, then

you

have

In¬

Regulation;

Company

Decisions

Recent

If you

Problems

Current

Other

vestment

and

Other

Im¬

Developments in Public
Utility Holding Company Regu¬
lations; Financial Statement Re¬
portant

covered that by means

additive, certain

big financial stake in the "gusher" that the

noncombustible

railroad's research scientists have

burn—so the fuel would deliver its full power.

quirements and Accounting Prob¬
lems; SEC and Corporate Reor¬

The Research Center has dozens of other

ganizations under the Bankruptcy
Act; State Regulation—The Pro¬

Priority

posed
Uniform
Securities Act;
Registration of Securities for Sale,
to the Public (Practical Aspects of
Preparing and Issue for Market;
and Processing Registration State¬
ments and Problems of Adequate

Cleveland!

—at

Members of the 80-man staff at the Cen-

tral's

brought in

Technical Research Center have

new

developed

powerful

new

by-product that could
before.

This

horsepower
.

and is

this small
bill

new

per
a

penny per

saving

Today oil is

our

next to wages.

help

keep

refinery

type of fuel delivers more

gallon cheaperI Even

cut the Central's fuel

can

Burning

be used in diesels

gallon than ordinary diesel oil

by $2,500,000

fuel frcm

never

projects

particles could be made to

under consideration,

r'4

better railroad service

Researchers

ings.

improve fuels..,
construction,

car

too.

to those that will contribute the most to
^

goes

are

offer the most

investigating

new

sav¬

continually trying to
new

freight

loading devices

...

design of equipment from signal light

your

•almost

op-,

FRANCISCO, Calif.—Carl

SAN

engaged in regular freight serv¬

Rubens has become affiliated with

operating successfully for sev¬
months on the new fuel. Crews knew

Walston

eral

gomery

sort of tests were
"

were

being made with their

improved in all cases.

new

fuel

was

Key to the discovery of the new
ful electron

fuel

was

the

•

power¬

microscope. The New York Central was

of the first railroads to obtain

such equipment.

developed after long and

Center.

freight salesman about some of the other
an

electron

scientists studied the

microscope,

Central's

physical make-up of the

refinery by-product in great

FRANCISCO, Calif.—Wil¬
Smales,

Dean

Jr.

Witter & Co.,

is now with
45 Montgom¬

Street, members of the New
Ex¬

changes.

With

the

Coast Stock.

York and Pacific Ccast Stock

experimentation at the Central's
million-dollar Cleveland Technical Research

SAN

liam

ery

intensive

Mont¬

Dean Witter Adds

Big investment pays off

The

265

(Special to The Financial Chronicle)

one

;

Inc.,

members

Exchanges.

reported to be equal or

was

Co.,

given no other informa¬

tion/At the end of the test period, engine

performance

Street,

New York and Pacific

engines—but

ip.

Secre¬

With Walston Co.

ice have been

Conference

Federal Bar Associa¬
tion,
Twenty-fourth Street,
N. W., Washington 7, D. C.
Fee
is $50 ($40 for FBA members).

(Special to The Financial Chronicle)

Four diesels

yg,

The
1231

tary,

freight rates from rising

everywhere/else in g our freight

Briefing

the

fuel will

eration.

some

Fraud

and

Enforcement

Reservations may be made with

astronomically—even though costs are rising
•

Procedures

Legislative Proposals.

biggest budget expenditurenew

and

Problems; Commission Procedures
in Investigations and Administra¬
tive
Proceedings
and
Current

the budget

This economical

and

under the Securities Acts; Broker-

Dealer

bulbs to broom handles.

Rules

Proxy

Problems

ment

better

year!
up

Disclosure);

Proxy Contests; Current Enforce¬

detail. They dis¬

Research is just one of the
this

recent

things that's

new

progressive "new" railroad. Ask our
developments that will help us move

Joins Walston Staff
(Special to The Financial Chronicle)

SAN

Walston

your

freight faster, safer and more economi¬

cally than

ever

Calif.— Stuart A.
the staff of
& Co., Inc., 12 South First

JOSE,

Schwalbe

has joined

Street.

before.
Joins Merrill

Lynch

(Special to The Financial

Route of the

"Early Birds"— Fast Freight Service

„

New York Central Railroad

Chronicle)

Calif.—Walter
A. Frome, Jr. has joined the stafi
of Merrill Lynch, Pierce, Fenncr
& Beane, 523 West Sixth Street.
LOS

ANGELES,

(7C2)

A.!..-

Continued from page

V v."-;;Vv v:

;

IP.

Lackawaiia and Western

due

car

the

Perry

bnoemaker

come,

busi-

months of 1957 an encour¬

aging one, there is every expectation that the year will
less disappointing than the first six month's picture

indicate.

Railroad Company

the

principal

Baltimore and Ohio Railroad expects to
produce a net income for the whole of 1957 about equal
to that, achieved in 1956—roundly $30 million.

tinues," the

first

the

although B
increased
over

The decrease in net income for

costs.

tion

Our

volume

was

off

1957

1956's

that

first-half

net

was

non-recurring income
exemptions, incident chiefly to
the company's now-completed refi¬
nancing program.
Movement' of
the
road's
prime
by

and

H. E.

gram,

and

level

met

half

'rate

that

half

this

year

better volume
of 1956, because

year's second half included the
month-long strike in the steel in¬

six

Our net income for the last
months
is
so
dependent upon

related items for construction if ' lost production" is not

the

outcome

ultimately made up.

quests for

have

movement

suffered

not

some

may

onlv

that

adverse effect

commodity

but

dustry.

with most railroads, we
decline in "manufactures and mis¬

Symes

James

cellaneous" traffic,

owing largely to a general shrinkage
ofifbusiness inventory, but due, perhaps, in some meas¬
ure, to diversion of higher rated traffic to trucking hchiefly of private status.
We

with

view

| program

now

marked

interest

the

market

research

being undertaken by the eastern railroads.

J We hope their findings will be of material help in d<£termining what kind of traffic the railroads
expect

handle

and

what

kind

can

services

logically

and

increases

tinued

The'

Baltimore

Ohio's

and

time.

inflation.

further

with

climb

steel

and

additional

products

Penn¬

$2,200,000

gone

annual basis, since July 1,1957.

on an

rates

Despite the delays in adjusting our prices which have

long-range

program

back

held

industry's earning power,

our

the

has

year

eliminating

unnecessary

furnished

service

has

progressed

sylvania, for instance, is one of the railroads that loses

branch

and

and below-cost passenger train
to the point where virtually all

secondary mainline service has been elimi¬

nated.
The

step is to expand studies leading to the re¬
of mainline, long-haul passenger trains,
view to extracting a maximum of economy with

arrangement
with
a

minimum of loss of patrons.

The B & O

was

the first

railroad in the country to sell

still

a passenger ticket. It is
vitally interested in the future of its passenger traf¬

fic

•;

Its self-propelled

daylight
late
in

service

1956,

are

"Daylight Speedliners," olaced in
between Philadelphia and Pittsburgh
the first self-propelled rail diesel cars

the country on

through, high-speed run with meal
service. Even more
recently, we have ordered two Siesta
Coaches from the Budd
Company. When put in service
eaily in 1958, they will be the first on any eastern rail¬
a

road.

continuing its

;

siding-to-siding service

other

specialized

freight

service^ and this year has

seen additional extensions of
our TOFCEE
(Trailer-on Flat Cars) Service. Our
proassemly-line freight car construction and re¬
building at our shops in DuBois, Pa., has attracted in¬

dustry-wide

rapidly

attention;
dieselization
funds become available.

proceding

Included in the B & O's
program of improvement are
one °f the world s
most modern
freight yards at Cumberland, Md., to cost in excess of $13 million, and a new

bridge

senger

the

across

Arthur

Kill, at Staten Island, N. Y„ to
incorporate the world's longest
single-track lift span.

services.

that

nation

the

During

recognition

subsidize

railroads

pas¬

in¬

been

areas

indefinitely

their

has

metropolitan

cannot

services

these

there

year

several

continue

losing competition

publicly-provided highways and automotive bridges

and

tunnels.

report

of the

specifically
this

their

York,

Metropolitan

and

has

for

example,

Rapid

the

blight

ways

rail

obligations

while

the

corresponding

airway

and

waterway

highway,

the

worst

state

railroad

such

taxes

this

industry
as

earns

respect

just

the

by taxing all railroad property,

against

property

the

power,

average

assessed.

Last

set up a Commission to

29%
year

which

the

state

are

where

earnings

increases

are

increased earnings
j rest on
stem from coal's growth and
development industrially at a

this

far

•

year,

for overseas shipment nearly
This year the estimate is for

20
23
to 24 million tons.
Tidewater loadings- have been at
record levels all year following the opening in January
by C&O of a sixth coal dumper at Newport NewS, Pa.
.-National bituminous production last year amounted
tidewater

carried

million

tons'of

coal.

slight increase, is forecast for
coal.

500. million tons,/and-'a

C&O is highly optimistic on the future of

this year.

development

Industr ial

brought 98
in

1956

running- ahead

Canada,

and

states

seven

C&O, which; in

the

industries to the railroad's right-of-way

new

last

year.

A recent example is a major chemical plant to be

built

Union Carbide Corp. on the C&O at Putnam,

W. Va., one

traffic

1956,

almost

equipped point

entire

for

record

(the first

from

coal

history for freight
docks

business

completely-

one

railroad), at Hunting¬

any

freight

along the

car

This will give shippers

C&O will spend more money in
in its

merchandise.

closer control of inventory and other

and

million

$170

C&O will be able to tell

operation.

instantaneously

5,100 mile C&O system.

C&O

Car Location Information Center

Va., the location of

ton, W.

C&O merchandise

high

second half-year expected,

good

new

went into

(CLIC)

all-time

another

set

May C&O's

shippers

hit

with

and

should

1957
In

of the largest of its kind.

revenues

cars,

1957 than

locomotives,

benefits.
before

ever

new ore

and

roadway projects in anticipation of the

which

lies

ahead.

new

$8 million bulk ma¬

terials

handling pier is starting operations at Newport

News.

addition, construction

coal tower is
to

load

now

under way

another

million

by C&O at Toledo, Ohio,

growing volume of lake coal and capable of

handling

seaway

coal shipments if they

The total for C&O capital

come.

expenditures fhis

year

will

approximate $100 million, against last year's record $90
million.

ties,

Along with this heavy investment in

C&O's financial

condition

new

facili¬

strong.

At year end working capital will be near the $45

million

continues

level reported at the end of 1956.

All

this

building

reflects

C&O's

strong railroad,

faith, in

the

future.

able to meet efficiently the

increasing demand for its services.
C&O's

faith

result

typified

regardless

airfreight carrier, and C&O's partnership in the unique

100%—

non-railroad
government

Study Laws Affecting Industrial

Development in New Jersey.

pre¬
year.

exceeding

assessments
at

the

high of $4 42 l|tst

much

This

untaxed.

are

twice

state.

and

"plants"

is New Jersey,
over

achieved

heavy

competitors

function

earning

their roadway, stations

pays

meeting them.

earnings

taxation

facilities,

recent

Commission

provided and maintained by the public and
The

the

Transit

community's

proposed

corrosive

local

and

New

revognizes

matter,

Another
state

:mil-

export 'coal traffic- on the ;C&0 is
running 29% higher than last year, in 1956. C&O trains
So

The Penn¬

with

other

As the originator of
scheduled
the B &
O is

hopeful signs for the future.

some

good deal of money on suburban and commuter

creasing

..rapid pace.

re¬

our

On the

have

buy

seven

>36.2

expected/to continue.

rising traffic levels that
a
territory that is under

made, months ago, our costs have con¬

were

timing of

sylvania Railroad alone, the increases in the prices of

| will be needed to obtain profitable traffic.
!

this

cast

and

increase in freight rates,,
mail pay, express and other charges,
that it is impossible to make a fore¬
Since the various applications for

common

first

was

year

period,

vious,all-time

slightly

the

month

> /to

,• •,

last

have

for

than

good, or better than, last
The prolonged cement strike

year's 12-month record.
starting in June, however,

look

/
second

costs in wages

•

the

For

reach

about 6%

was

and increased
materials' not

increases.

steel-

related freight—is expected to

Simpson

1957

1956.

period of

tax

traffic constitutents—coal

half

first

the

for

same

$419

These

Company

Railroad

Net income, however,
almost 45%, $12,271,000 for the first half of
against $22,187,000 for the corresponding period
of last year.
Three factors account
for the sharp drop in net: The de¬
crease
in freight traffic volume, a
somewhat larger maintenance pro¬

the

below

period, approximately $1.6 mil¬
lion, was due almost entirely to the
distorted

I-

SYMES

Pennsylvania

The

of*this

Monthly

JAMES
President,

com¬

lion, cr $4.48 a common share. This
set a new reqord! for
the seven-

the nation.

needs

the

fact

recognized

must

year,

record

the

for

income

Net

months

Walter J. Tuohy

about $300 thousand
operating expenses were

by more than $3 million —
despite higher wage and material

lagging in
article — new

are

Congress and
industry is to
problem which confront it and the transporta¬

situation

meet the

i95o,

cown

that

this
year's

last

the

$435

million.

1957,

months

six

railroads
indispensable

why

reason

million

with

for

;

between

forecast

$440

pared

regulatory authorities if the railroad

the

O operating revenues

and

cars.

That

general industrial activity con¬

railroad

have tripled, while railroad, service charges have
increased to a much smaller extent.
This has had
serious adverse effect on the industry as a whole and

freight

If the current level of

jin 1957.

business

volume

Total

buy

President, The Baltimore and Ohio

years,

been
a

has
last

C&O has reported steadily rising net in¬
culminating in the $67 million, equal to $8.28 a
common
share,
earned
last
year.
Aided
by
a
continually growing
export
coal' market,
tne
railroad
expects to better that figure

seven

of World War II the cost of equip¬
and major supplies which railroads must

ment, wages,

Ohio Railway Company

year

Since the beginning

acquiring

SIMPSON

II.

record

and Ohio Railway believes it
in the making. In six of the

Chesapeake

earnings, as measured by dollars, have been in excess
of previous years.
But these are present day dollars
with much reduced real value or purchasing power.

Lacka¬

strike settled, and with the general

The

TUOHY

WALTER

President, Chesapeake and

spite of the fact that during that period its volume
of traffic has been running at an all time high and its

general

the industry's, history.

year

another

particularly hard.

would

part of the picture.

part is the fact that
Western which for

back to financing new equipment acquisi¬
tions with equipment trusts, or borrowed money.
This

forced to

for that period. The

impact of the cement strike in July, on top of the
cohcentration of industrial vacations, hit the

outlook for the last five

and

years has been able to fi¬
K. tt. bimin
improvements, and particu¬
larly new equipment purchases, out
of retained earnings has in the last year and a half been

performance is the best in its
history, and yet the terrific impact
,
of higher wages, higher material costs, when related to
an 8.5%
decline in carload business for the six months,

But with the

repressed, as it is now.
If 1957 turns out to
in which that fact is finally recognized and
acted on, it may well turn out to be the most fruitful

trarily

nance

load

cannot

some

is lower than that
railroads. Its train-

growing economy's need for our services—which'
do alone while our earning power is arbi¬

of the

be the year

Norfolk

the

another hopeful indica¬

ahead for the industry in the con¬
sideration being given a plan by which the Government
would finance
a
certain number of freight cars and
locomotives and lease them to railroads at a profit to
itself. This plan would help us keep the industry abreast
better times

tion

re¬

industrial activity.

positive side, there is

the

trend of increased
compared with the

same

less bright

The

expenses,

wanna

of 4.1%.

Whiie this is

fall-off in

8%,- with a
loadings show¬

of the year.

interesting

highly unsatisfactory showing

loading, coal
commodity

other

previous year, is in evidence and we
are
optimistic about the remainder

of this.
Its transportation
ratio, after deducting commuter costs
and New York Harbor marine and

ness

freight

loadings,

car

example

of most Eastern

resuit of

as a

decreased

This is the rosy

station

principally

fortunate,

been

coal loading largely

by car

and

increase

July

traffic.

of all

ing

The Lackawanna is an

has

year

sult, net income increased 12% over
the same period in 1956.
So far in

ary-forced high
and a relatively small drop in freight

left

loadings

net

inflation¬
break-even point

between

measured

car

expenses,

relationship

the

increased

show more
favorable results than for 1956. The
majority, however, reflect the close
station

tan

the

greater volume of coal exports.

disparity
in the net income results achieved by individual rail¬
roads. ; A few, because of a locally favorable
traffic
pattern and frequently related" to limited passenger
service* limited terminals and lim¬
ited specialized transportation costs
such as harbor and heavy metropoli¬
1957 has shown an unusual

The first half of

months of

six

Company

Railroad

all taxes.

with other businesses m

only one state, and the recommendationis yet to be acted on,, ih is reasonable to hope that it
will be—and that the example wm spread to ot.ier s.aies.
Meanwhile, one of the most damaging aspects of sucn
taxes is that they go on in bad years and good—making
the railroads highly vulnerable to even
the slightest
-

experience for th* first

the Norfolk ancl Western,

For

President, The Delaware,

"the>Tailr0ads :be>tinted "the:-

that

one

and equally

same

Railway Company

Western

and

SHOEMAKER

mendations was

:\T;,

it. SMITH

Norfolk

President,

;

Chr&nicU;•> Thursday,. AugLut 13, 19a7

Commercial and Financial

The
2G

Among its recent

recom¬

too

coal

overseas

ping,
All

also

its

the

"transportation

investment

export

company,

Slick

business"

Airways,

American

Coal

Inc.,

Ship¬

Inc.
in

all, Chesapeake and

Ohio, which has been re¬

porting "best years" to its 90,000 shareowners. expects
be able to report another "best
year" in

1957.

186

Volume

Number 5664

Continued

from first

;

The Commercial and Financial Chronicle

page r

stated above

revenues,

•.

is drastic

evidence of the heed for immedi¬
ate

Same Old Railroad Problem

action.' But

further

evidence

along the lines
pursued in my article, "1955 Is
Not 1929" published in the "Com¬
mercial

Financial

and

Chronicle"

all

and

tion

too

in composi¬

often

ment

arbi¬

are

regulate

fairly

in the

issue of June 9, 1955.

time I

artificial

highly

are

claim "1956

trarily established.
Proposed Legislation
There

Rates should be

country.

reason¬

Eisenhower's

able and fair to all concerned. The

entitled to

final

fair to

liiie with

rate

the

since 1946. Expressed in per¬
centages of 1946, the statistics for
1956 show the following; /
^
:
,

Committee
fairer

National Product in

Gross

com¬

petitive-climate in which to work,

costs

return

reason¬

their

vestment.;

which

and

in¬

• •.

*. - •

Constitutional authority of

the ICC is based

transportation

the

time vUf .the

industry since

econ¬

omy

which " will ! was 198%

railroads

the

the" public,"are

will permit them to earn

The

In the

However,
permitted to charge rates

that while

able

give

the

national

the

Income

tional
-

«■

the

1946

1956

Clause

have

that

total; Na¬

196%; Total Com¬

with

commerce

sion

regulate

foreign

nations

other

among the several states and
with Indian tribes."

1913j the Valuation Act

enacted

and

directed

determine the
erties

used

States.

for

tures

For

this

legislation

was

Transportation
passed.
rate

Act

carrier

interests,

industry..

hiding

behind

railroads.

the

Obviously regula¬
transportation has been a

changing thing

re¬

carrier industry,

over

the

preceding outline

years

for action

legislation

of the President's Com¬

Three, and later the
Committee of Six, to develop the
Transportation Act of 1940, which
announced

the

for

new

Commission.

high

The

TABLE

Statistical

Factor

happy

are

5,000

new

of 1,000 new

schools at an average
of $10 million each, and

still" leave

each.
sum

build

could

highways

cost

of only

and

at an

average

perform

the

railroads
people, a

ren¬
serv¬

sum
make it

million

.....

new

Comparison

Produced on the basis of a $35 Mlhon investment. We listed 12 mdividual industrial corporations
whose total gross investment was

just about equal to the total rail-

cash basis.

of $35 billion would.
possible to produce

valued at $1,000.
V

transportation

the

which

der the American

1956

automobiles

i(i

When broken down, the amount

road investment ($36 billion).
_r

„

Yet one of these corporations .
in 1956, General Motois,
grossed >1(-8, billion. The com- .
parison that follows is not offered
a spirit of criticism of General
Motors, one of the great industna> of the world, nor of the
profits made. The author is strong-

alone

ly in favor of the free enterprise

system and the profit motive which
$35 billion is equal to $1.60 for stimulates it to function. Never-%
by all the cor- theless
the
facts
and
figures-1

each $1.00 earned

porations of the U. S. in 1956 and
is equal to $2.90 per $1.00 of divi-

Continued on page 28

1946

vs.

Dollars)

i*,

m<;

Gross National Product...

with

Railroad Investment

on
,

The

an average
cost of $3,500
each, or on the other hand,
place in the living rooms of
35 million individual families
a
new
color
television set

transportation just
down the
structure of the entire trans¬

The

the seg¬

for

come

portation, industry as a whole.

of $35 billion would
the cost of building
new
private homes
average cost of $17,500

sum

(4)

This may sur-

the U. S. grossed operating revenues in the amount of $10.5 billion. This'gross, as stated, was

built at

includes

each and

mentioned tend to hold
rate

Ohio Edison.

prise some; the railroad1 debt
structure is nearly twice that of
American Telephone.

$150,000 per mile and
all equipment,

were

million

the

ments

Electric, New England ElecSystem,
Niagara
Mohawk
Power,
Northern
States Power
trie

In 1956, the Class I railroads of

The
2

...

Illinois Power and Light,
Utilities, Pacific Gas

Middle South

cost

pay

matter of

subsidies to

these

fact,

and

Duquesne Light, General PubUtility," Houston Light and

Power,

railroads

Despite

iic

$350,000 a mile (and
keep in mind the fact that our

(3)

Illuminating,

Electric

and

of $35 billion we
100,000 miles of

new

er,

For the

Cleveland

Columbia Gas System, Duke Pow-

endow

would

colleges with $75 million

200

(2)

balance

that

amount

finding it impossible

profit.

out with a

service

costs

Nti.

2*'

Gas, Central and Southwest Corp.,

pay

Billions

(in

are now

to make both ends meet

;

comparison

Comparison of National Economy

cost

ing the matter.

Govern¬

redefining of the

are

trucking industries are subsidized

state that Congress is now study¬

transportation

Federal

come

duties of the Interstate Commerce

policy

4-v,

legisla¬

The time has

for the

i "r,<;

$209.3

;

It)Hi

INDUSTRIAL

THE

TAKE

«)->(;,in %

ROUTE

198%

$412.4

SOUTH

•

National

Income

179.6

342.7

196
201

Compensation .to. Employees

117.7

239.1

Personal Consumption Expenditures

•146.6

265.7

180

Government Receipts^

51.2

112.4

221

Total

Corporate Profits;(Before Taxes)__
Corporate Taxes
_Corporate Profits (After Taxes)__
Corporate Dividend Payments-_'___

22.6

43.7

193

9.1

22.0

242

13.5

21.7

160

12.0

205

,7.

_ _

10.

J__i-__r_-

__ _

_ _

(Average of Above 9 Factors.

'45:8
...

;;

.72.8

149.2

200%

Kentucky and the South to¬

•

day offer the ideal combination
of

sumer
/■

1.
ik

(4,..
5.

,6.

9.0

5.8

Railway. Freight• Revenues.______u
Railway Passenger Revenues_-_____Railway Total Operating Revenues

139

;

>7.6

4.10

7p" Average Revenue

Per Passenger.

Class I

Railroad

12 Major

TABLE

1.947c

,1.59

■

137
151

1.75

110

Total Investment

vs.

No.

Bethlehem

Billions

Company

■

transportation service.
Let

help

vantageously,

you

—

.—__

$2.6

Eastman Kodak

1.6
0.7

General Electric

as we

General

International Nickel

have helped

experienced indus¬

department is

specific needs. No obli¬

gation. Your confidence

will be

Mathieson

Hydrocarbon Chemical Corporation Plant on

burg, Ky., is one

of the many industries newly located

Doe Run, near Branden¬

along the L&N.

2.0

to locate ad¬

prepared to recommend sites to
fit your

Invested
Steel

con¬

cooperative labor, plus superior

trial development

Industrial Companies (Dec. 31, 1956)
-

materials, abun-

expanding

markets, ample supply of

others. Our

Investment,

Total

•

raw

141'

2.683c

0.978c

Average Revenue Per Ton

1.384c

6.20

Average Rate Per Ton Mile.__
Average Rate Per Passenger Mile.'.
__ __

155%

0.8
10.6

1.3

access

dant power,

'?;■
8.

0*.

Pont__

Motors

International

.___

Paper

Sears Roebuck

7.3

T__—

0.7

1.0

—

_i___

—-

Standard Oil of California

10.

Standard Oil of New Jersey;

11.

Union

12.

—

Carbide

Steel

0.8

2.8
3.7
1.7
5.5

strictly held.
Call

write

R. E. BISHA

General Industrial Agent
908

Broadway

Louisville, Ky.
Phone JUniper

7-1121

Extension 318

THE

PRODUCTION

LINE OF THE SOUTH

$35.6
Total

Companies

ishown

VS.
Total

Class I Railroads of the United

States—

34.9

LOUISVILLE

Natural Gas, Baltimore Gas
and Electric,^Southern Cahforma
Edison, Boston Edison, Florida
Power and
cai"J

Light, El Paso Natural

construction

the

trucking

and

concerned.

they

common

tion indicates.

piece

airline

the

and the

last

The

far

inadequate regulations, profit to¬
day at the expense of the public

the

mittee

primary schools at an average
cost of $2 million each, plus,

the fact that both airlines and the

.their investment.

grew out

industry. What is true in the case
of the railroads is equally true as
industries

upon

fair

of true competition

common

Selfish

earn

names:
Consolidated Edison of New
York, Detroit Edison, American
S. Gas and Electric, Commonwealth
Edison, Consumers Power, Ameri-

to con-

you

sum would
construction" of

1957 is proving to be
great prosperity for most

the Commission interpretations of

was

rule

the

tion

I ask

That

(1)

year

one

the operation

the

1920

the

tijat °f 25 of the largest public
utility companies of this country
when combined. Here ^re their

stations, etc.).

opportunity to

The

and; are supported
by •
elements of the busi- >. corporations and for industry in
community which recognizes.' general, but that will not be true
the benefits to be realized from; in the case of the transportation

affirmative duty to fix
rates that would give the railroads
turn

billion

$35

this

making, which imposed

the ICC

legislation

sort

■,

T^e total debt structure of the
is just about equal to

meaning

the

stress

ness

when

It established

only 53%; and
operating revenues

senger revenue was

railway

billion

billion,

sider the following:

only 155% of the 1946 gross; pas¬
total

favor

further

substantial

important

enacted

the traffic of any

investoc^

railroads

East-

United

piece

Against the $35 billion

?u.tSvan^^I'o C$vira* S*°C-m
totaling $6.8 billion, with to
capitalization amounting to $15.2

names:

and

Carbide

carrier

the

Commission

The

effect

Railroads

prop¬

period of 15 years

was

the

amount of $8.4

the

meet

major project of
as
measured by
employment activity.

the

mode

Union

whether such

was

ICC

common

throughout

purposes

the

valuation

consider

not

Kodak,
General
Electric,
Motors, International

sey,

transportation; or
rates are necessary
only 141%. Because as recorded,
(freight) were only 141%
competition of any, rates
of the 1946 rates.
other mode of transportation."

and

shall

of such rates

their

are

Steel.

Congress

"to

power

Funded Debt

Nickel, International Paper, Sears,
Roebuck, Standard Oil of California, Standard Oil of New Jer-

known

prescribed

shall

paid by these same corporal-

tions.

General

provides "this Commis- !

which

Here

Bethlehem Steel, Du Pont,

Article I, Sec-"!
involves .the .. application by the !
Now consider the railroad picas "the
Commission of its authority over,
"Commerce Clause"" of the Con¬
tui'C. v / •
•
rates charged for services.by car- ,
stitution
of
the
United
States, riers and
In 1956 freight revenues totaled

tion

combined
of 12 of
corporations in this

to the
investment

equal

largest

man

196%; Government Receipts
221%; Corporate Profits (before
governing;, laws "in 1940 and the
taxes) -193%; taxes paid by Cor¬
need for maintenance of a strong
porations 242%; Corporate Prof¬
national common carrier industry
its
(after taxes)
160%; Corpo¬
(including ,rail,
highway,
and. rate Dividend Payments 205%. The
inner! segments of tne industry). average for
these nine common
The major, change under study
denominators is 204%.
revision

last

dends

stress

world.

to
Employees
201%;
Consumption Expendi¬

pensation

daily

(gross) almost $35 billion.

aggregate

1946

witnessed

recognizing changed conditions in, Personal
railroads

analysis

must be

also

fair deal.

Cabinet

Transportation,

below

our

just what an invest¬
ment
of
$35
billion represents
consider the following:
it is an

denominators enumerated
highlight the changes

...The

now

consideration

shipper, the farmer, the consum¬
er, the commuter and the traveler
are

legislation under
Congress
and
that body is now studying proposed legislation resulting from
reports submitted
by President

is charged with the re¬
sponsibility and has the authority
necessary!tp ..establish rates
charged by the railroads of this

1956

Economy

vs.

mission

1946."

not

was

This

vested

amount
National

The

we!fare!*\'he %a?lroads taTSS '

im¬

and

partially.

The Interstate Commerce Com¬

ice vital to each of

life, whether from the standpoint
of our physical requirements, so-

is found in studies

—Too Little and Too Late

;

(703)

AND

NASHVILLE

RAILROAD

(704)
<

The Commercial and- Financial Chronicle

Fred Goth V.rP. of

>■,;

Continued

MINNEAPOLIS, Minn.—Fred
has

become

associated

from page±27<c

■

•

v."t *

.1 *< and
* &

■

for themselves and clearly
the differences between

speak
-

'f.1-

the

results

ggement and

agement.

independent manmis-regulated man-

vital

[J
I,;!

a pound of steel
36.7%.in 1946
•„

ton

management is able to keep costs

the

of steel

General'Motors, whose road
$4.10,

moved

ton

of the!iprice

Pennsylvania
'

was

aj\d prices in line, in 1956 grossed

ton

vestment

total

$7.3

in-

gross

billion

$1.48

steel/ Based

latest

the

Class

Goth

St., Minneapolis, as
Vice-President. Mr. Goth was for¬

merly
dent

the

Executive

Irving J. Rice

Com¬

and
•
-

>j,:,«,i
»!l

;

p-'fi J {'■ '

1956

thp

lion,

4.%!

prices
3.90%.

school

district

Sept. 1, 1958-1982
yield from
2.80%

at
to

The group submitted a
100.429% for the bonds, a
net interest cost of 3.96% to the
issuer.
;
; •! '. .
v
bid

Included
,

cafe

are:

the

offering syndi-

'■

The First National City Bank of
New

(4)

Boston

Smith,

Barney &
Trust
Company, San Franci-co;
Security'- FifsC' National
Bahk,
Los

Angeles; California Bank, Los
Angeles; Continental Illinois Na¬
tional
of

Bank

and

Trust

Company

Chicago.

Chemical Corn Exchange Bank;
The
Northern
Trust
Company;
Wooden & Co.
ard Freres &

Incorporated; Laz-

Co.; Blair & Co. In¬

corporated; Drexel & Co.; Phelps,
Fenn
&
Co.; R. H. Moulton &

Company; Kidder, Peabody & Co.;
Glore, Forgan & Co.; Goldman,

Pierce, Fenner
Shields
&
Company;

Beane;

The First National

Bank of Port¬

land,

Oregon;
Paine,
Webber,
Jackson
&
Curtis; Seattle-First
National Bank; Salomon Bros. &
Hutzler; R. W. Pressprich & Co.;
A.

C. Allyn and

Company, Incor¬
porated;
The
Philadelphia Na¬
tional Bank;
White, Weld & Co.;
Equitable Securities
Corporation;

Stone

Webster

poration;

Securities

Cor¬

Bear,

Stearns &
Co.;
&
Co.; William R.
Co.; Mercantile Trust
Company; Reynolds & Co.
Dean

Witter

Staats

Bank

Adams

Co.,

American

PORTLAND,

lairbank

now

—

connected

Merrill

with

Inc.m

{

!>b

»«*I

(

jr. ;H

-1

i •-

Electric--^--1-1

American Gas &

Commohwealth Edison

Consumers Power

American Natural Gas—

Baltimore

671.2

________

293.2

9.;
10.

Gas

Electric——...

12.

Central & South West

13.

Cleveland

14.

Columbia

freight rates. -The carrequired to pay their
with $1.41 in terms of the
are

costs

1946

17.

Gentral

140.0

_4-i

'185.0
162.4

—

Public

19.
20.

Middle

18.

389.6

—

140.0

13.

290.3

Niagara Mohawk Power
Northern

25.

Ohio Edison

amouht

in
.

which

must

-There

Class I

estimated

were

ye,d

only an
500,000 emvs.

and

The

salaries

the

estimated

bil-

r.';" r
conclusion

one

from

..M

can

study of these

^
com parative statistics:
The railroad
contribution to the economic welfaie of the nation exceeds

i\/m+kvoeVnnf

Penfir£ll

m
.t lbution to

fnreWa
„he owners
.

the

railroads has been
niggardly.

Our
U.

Total

comparison involves
"Eastern Railroads"
of

the

Eastern

I1} i
e Eastefn group grossed
f
S !? against $4.2 billion
for U. S.
.

Steel.

group

showed

invested

able

31b

gross

invested, U. S. Steel
gross of 77b per dollar

Tax payments made
by

the Eastern

million

Whereas the East-

was

dollar

railroads

were

versus

taxes,

-n-

re-

$340-? million against

i mi.1v.on; dividend

$170.9

paypients
against $146*6 mil-

million

capital

average

$311.8

millipn;
^pf

esti-

number

timated

total

cost

salaries

$2.4

billion

for

emes-

and

wages

against

$1.6

P""On.

price

pound.

that
the

rate

Pr.ce of Steel

following: In 1946

steel

In the

ton-mile

price

Based

averaged
same

rate

representing
of

the

$8,208.1

Utility Companies::.!-of the United States

of the

'; 44

12 rails.

pound

iv;^ v;.v>vV.,:

TABLE

Class I Railroads of U.

$3.9

Statistical

vs.

General Motors Year 1956
(in

Denominator

Millions):*

the

12 industrials grossed
$22.3 billion or 410% of their 1946
in

industrials

1946

(>.

Income

a g a i n s t
$180
by the rail group.

rose

million

(After Taxes)

894.0

—

Capital Expenditures

Est. Total Pay Roll

Total

847.4:

873.9

;

444.9
-_i

—

558.4

■?.,

891.0

,1,231,3 /

1.0

:■

0.5

for Wages & Salaries

3,000.0

5,318.8
(-.

•'. '

■

Ratios

•

Assets

:•

•.

Per Dollar

■

•

of Gross

$3.30

Gross Dollar Volume Per Dollar of Assets
Tax

$0.70

0.33

1.48

0.12

0.08
0.11

Payments Per Dollar of Gross.

—

Net

Per Dollar of Total Assets—_

0.03

Capital Expenditures Per Dollar of Gross
Wages & Salaries Per Dollar of Gross___

0.12

0.08

0.50

0.28

272%

ncome

TABLE

another

10,796.0

;

1956, it had

preceding series

opens

10,550.9

_____

industrial group while rail
net increased to $483 million. In
the rail net but in

Motors

$7,335.4

In 1956

was

Genenl

$34,865.0;

Dividend Payments

for

net

•1,121.3

Volume.:

to $2,236 million

1946, the industrial

(Gross)—

7,|o Est. Average No. of Employees-^-/—

inCOme reported by the ingroup, in
1946 was $500

income

Dollar

Payments

Net

Investment

dustrial

net

Tax

dollar.

earned

Gross

•

only • $1.40
per > $1.00
grossed by the rails, in 1956 the
figure was $4.12 per railroad

million

Total Assets

grossed

gross

Class I :
Railroads

1956, grossed only $5.3 billion
137% 0f their 1946 gross. Again

;

In comparison, the 12 rails

gross.

Eastern Railroads

statis¬

Statistical

avenue

S, Steel Year

vs.

1956

Denominator

Millions)

(In

thought. If the present Adminis¬
tration, the Congress or the Inter-

No.

Total

making the rail-

Gross Dollar Volume

industry the whipping boy in
inflation, now going
they had better begin to look
for another victim. The railroad

Tax Payments
Net Income (After Taxes)

470.5

170.9

146.6

311.8

industry made

any intention of

Eastern

road

Railroads

Assets

Investment

2.67b

year

the

was

0.98b;
36.7% of
of

steel.

latest

figures, the
19-^ a,Poun<J °f steel is 5.97b,
<Hlf
1.39b; today the
tefn^tde .lie J is oray 2$.3% of thp
rattf
.it.
if
'

(Gross)

;

$15,136:0 v
4,678.2

U. S. Steel

$5,490.2
4,199.0
331.0

the fight on

on,

Dividend Payments

Capital Expenditures

552.5

Est,

0.5

0.3

Est. Total Pay Roll for Wages & Salaries

$2,417.0

$1,550.0

Total Assets Per Dollar of

the

contribution to
witnessed over the

inflation

past 10 years; on the
contrary the
industry has become one of the

The Problem Must Be
It

that

clearly evident
because
of

Net Income Per Dollar of Assets

0.023

0.063

the

Capital Expenditures Per Dollar of Gross
Wages & Salaries Per Dollar of Gross—

0.12

0.07

0.51

0.39

un-

wise governmental policies which
them to complete on an unequal basis with other forms of

transportation, have

not

been

TABLE

Steel, Prices

try

the fact

that

industry is vital

sound

to this

both

war.

in times of
RaiIroad credit

riorated,
declined

its
and

has

l'ear

the

alone

should

times

over

form

what

they

run

the

two

three

have .financed

the

Price

Mile

of Steel

36.7%

2.67c

0.98

3.01

1.08

Yedr

years.

It is highly

essen-

Sted
To"

Ton

RR. Ton

per

1946

$53.10

$4.10

1947

60.20

7.7%

4.43

3.43

1.25

60.80

5.1&

3.71

1.34

1949

74.20

5.57

3.86

1.33

1950

77.20

5.58

4.13

1.34

1951

82.60

5.66

4.24

1.43

1952

84.80

6.16

1953

4.52

1.45

1953

90.40

6.27

1954

4.72

1.42

1954

94.40

6.19

1955

4.97

1.37

99.40

5.95

1956

;

5.36

♦

1.38

5.97

•

*1957.1

Ton in

Rev. per

J.39

1948

•

32.4

1955
*

«.

23.3

;

107.20

.119.40
r

6.20

;
'

^'Estimates.
.t.'i

W-t

6.7

6.20

1956

*1957

♦

past five

Average

of Steel

1952

•

Rev. ner

Ton

1951

equipment
years

Lib.

per

1950

from

0.08

1949

has

few

0.77

0.10

Mile to Price

1946

earnings or otherwise, an insufficient ability to finance needed and
projected c a p i t a 1 expenditures,
These

0.31

Railroad Ton Mile and Ton Rates

per Ton

1946

and

Phas detea.

either

per

RR. Rev.

1948

coun-

working capital

$3.42

% RR. Rev.
Price
of Steel

rail-

peace

vs.

al-

lowed to participate as
they should
in our growing economy. This de-

spite

$1.31

outdated

and outmoded regulation, and

Average No. of Employees

348.1

Gross
Gross Dollar Volume Per Dollar of Assets
Tax Payments Per Dollar of Gross

Solved

railroads,

340.3

Ratios

principal casualties of this trend,

road
vs.

187.0

$8,400.0
Total American Telephone & Telegraph._1_ ; $4,618.0

expenditures^$552.5 force

versus

416.5

•

; '197.1

Total Class I Railroads

$470.5

$331.0 million
Steel; net income after

JSJoi

260.2

;

state Commerce Commission
have

Steel.

group were $15.1 billion
against $5.5 billion for U. S.*'Steel,

per

1956,

The

U. S. Steel

assets

billion grossed by the

railroad

ern

§1.40 for each

tics

821.6

—-----

Power

risen to 490%.

Comparison Eastern Railroads
vs.

States

Total 25 Major Public

2'
'

1946,
the
12
industrials
grossed in the aggregate, $5.4 bil
ijon

by far
that made by any
single corpora-

.n/1£?

n ,1956 was $5,3 y/herQ6s<1tbe

Genej-al" Motors,

~u!-\

Only
d 1 awn

there

wages

totaled
r

1956

General;Motors.
lor

,rl

cost

j6mP

Railroads

.total

cost

billion*

consideration

that

t1 rPe-?

™

ployed

///'•.

stressed.

estimated

was

comparison

less

...

another

•

1956

in-

slightly

dividends.

for

151.1

South Utilities——

24.

rail$4.80

358.4

—r-- —

——

Utility
Houston Lighting & Power
Illinois Power & Light

1Q4P

C. ;251.7

System:.—-

Duke

Power

148.6
427.3

—

Corp._:^4-//4'/I-/"---"

Duquesne Light Co

195G vs' 1946
operating results

Gas

409.6

Illuminating-j_—

15.

at least $2.00 for the same purpose.
1flsr

Electric

16.

dollar,
whole
practically
other business has available
*

'•172.1

sharply
they
But not

cases

than doubled;

; 113.1;
585.8-•
"

riers

many

415.0
437.2

4.Boston Edison

23.

grossed

per

Lynch, Pierce, Fenner &
.Beane, Wilcox Building. He was
previously - with Walstod & Co{

Edison

California

year 1946, I will submit a summary of such results. In this cornparison 12 industrial companies
than
^General Motors, paid outj; are stacked up against 12 rail
more in taxes,
expended a larger
companies. In each case the cornamount for capital,
improvements, panies compared are
major in nareported a slightly higher total of
ture.
(See Table attached to this
net income but paid out a smaller
study )
v
u
' " .. ■
;
:

vestment

the

Dexter

Southern

$785.2

—---^--7--,-^--'---

11.

tive

I
of

$1.00 of General Motor

per

average

Oreg.

Edison

Pacific Gas & Electric

Consider the

„

To stress the changes in respec-

T«n

(Special to The Financial
Chronicle)

Detroit

New England Electric System—

Ton-Mile Rates

With Merrill
Lynch

advanced

1946,1 in

have

ployees 500,000 against 300,000;

Building.

have

Fanded Debt

Florida Power & Light
El Paso Natural Gas—-.1

since

Millions in

}[

;

21.

mated

(Special to The Financial
Chronicle)

i.AJnv

Company

Total

vs.

(Dec. 31, 1956)

Consolidated Edison Company--l-*—

our
our

• °f, a 'ton
of f steel, .today 4r
represents only 5.2%.
/'• ■-b
We all realize that prices in

general

Ul.

7.7%, of the

PrIce

Utility Companies

Debt of 25 Major

22.

lion;

PORTLAND, Oreg.—Edward J.
Xenney, Jr. is now affiliated with

Outstanding

Debt

Funded

Total

the

million

Joins E. M. Adams

ton by
ton bv

r»

table iii

Railroad

""...

No.

was
_

con-

recorded

and

Lynch,

1946
i..„

with

Merrill

investment

study of the

Co.

$444.9

the Class

up,

Sachs & Co.; C. J. Devine &
Co.;
Eastman Dillon, Union Securities
'

rails

Inc.;

Corporation;
Co!; American

gummed
ro?l

total

First

the

The

million.

the

Co.,

nrire of moving
price nf moving

earners

every

million:

corporated; Ilalsey, Stuart & Co.
Inc.;1 Harris Trust and Savings
Bank; Guaranty Trust Company
Morgan & Co.

tbf
the

R.R,

railroad

made, by
General Motors totaled $558.4

New York; J. P.

191

Dividend payments

York; Bankers Trust Com¬
pany; Harriman Ripley & Co., In¬

Incorporated; Blyth &

•

lion.

Bank and Lehman Brothers is of¬

Calif.

nnid '

due

Net Income reported by General Motors was $847.4 million; by the rails $873.9 mil-

managed by The Chase Manhattan

geles,

riiltf

;

A syndicate headed
by Bank of
America N. T. & S. A. and jointly

bonds

(2); General Motors made capital
expenditures of $891 million;
a i the rails expended
$1,231 mil*

Angeles School

fering $44,000,000 City of Los An¬

rnm/nr,

(3)

Bonds Underwritten

Whereas General Motors paid
out $894 ( 11111I1UI1 in taxes III
UUb^tpOt7*±
million 111 IdALb in

$44,000,000 Issue of
Los

,»

Vice-Presi¬

pany,; St.. Paul,. Minn.,?
?

•*

....

(1)

9th

lAolrino

railroads

...

So.

the

...-i

•

$1.00 invested, while the Classj or some $66.30 per ton, while the
were regulated, to the
average rate received by the railextent
that permitted
them
to • roads/today ; is
$6.20 per ' ton
gross only $10.5 billion, only 330
moved, ' up from $4.10, or only
per $1.00 invested.
Summing up: $2.10 per ton increase. Whereas

,ikj

Fred

Funded

per

economy

r„„

v;'

figures, the price of a ton of steel
is $119.40 up from $53.10 in 1946

brand

some,

$10.8

billion

that

country,
and
forward - looking
James M. Sy.nies, President of the

rail-

$53.10, the

per

7.7%

obvious

approaches must be taken,to

new

'fi
h

price of

average

was

average

tive solution to part of the prpblem ih>the.form of his proposed
governmental railway equipment
agency.
In some cases-this has
been mistakenly branded as put 7
ting' government: into private em
lornricp nnd nf g'lvinff snhsiHipc +,
terprise and of giving subsidies to
the railroad industry. .Nothing
could be further from -the realistic.

industry which is so
country,' ,>(('! n\

our

against ening the basic

tr\Ao

1946

this most serious problem threat-

price of
..annt

this

serve

Too Little and Too Late

fL'b/H'S

I. '

')'■

followed * in

•.

•m

this

develop sound ^policies to be, strated. in recognizing this probthe future ; to pre- lem by proposing such a construc-

?'*

with

cognizance

1 v

;

114

/Thursday,'August 15*1937

^immediately- gratulated-* on the/courage and
situation loresight which he has aemon,

that;, Congress

take

Same Old Railroad Problem

McKendriek, Hajeltine &: .Wilson,5
,

tial

■I.

McKendriek, Haseltine
Goth

t.U

:
-

t.i.

5.2

to.,

186 ' Number 5664

Volurrie

.The Commercial and Financial Chronicle

Actually Mr.,Symes has in-

truth:

tional economy and industry in
general absorb a freight bill in-

corporated in his plan the Admin-

Camden,

question is

provided by the government; He
established it 100% and is to
applauded 'for so doing. There
is: not5 a single dollar of subsidy
involved in his proposal; he merely realizes thA railroad industry
to

?f'

roa,

cn<1

Symes,4

fnr

nnt

nir

thp

lion

iinp«

Z kers?' To thk
n'rnmntlv ^
promptly> responds.,
industries

if these

tons,

F'at of
crease

that

<■

mile

1956-1957

tional

190%,

industrial

The

the wrong foot

j-ate

are

far

ton-mile
less

when

which
low.

too

rate

1956

grossed

25%

1956.

allowance

tal

expenditures*

billion would
net

before

would

show

net

income of

fense
the

outside

Director.
wuv-ctm.

American citizen.

elfective Sept.

the

nary,

For

Com.

Reserve

term ;

His

ex¬

Mr. Davis's early
connections
included

year.

cot

President
since Janpreviously as a

served

trust

company

and

11956

was

Senior

told

facts

the

need

for

na-

soon

health

nancial

his

began

bookkeeper.

banking
At the

Industries
Net Sales

General

EM.

Bethlehem

$1,962.5

i-v-r

that

will

Fadden

Bank's

the

viQo

...

the

Rai^f s._.

moved

and

Florida

(Millions)
195(5

J !> I«»

Pennsylvania--

2.
3.

New

dents since

678.3

Robert

780.4

Santa

Eastman Kodak

274.9

761.7

Southern

Railway.

7.,

International

133.1

444.7

Chesapeake & Ohio

244.1
167.4
95.6
126.1
169.7

166.6

York

2.12.4

United

310.4

952.9

10.

Atlantic

154.2

592.9

11.

Louisville

179.0

500.7

12.

St.

$5,441.5

$22,350.4

Aircraft

American Smelting &

American Cyanamid
Total

Northern

969.6

92.0

11.

Refin.
_____

Companies--,

Denton, Vice-Chairman

Great

"Nickel Plate"

Coast Line
&

Nashville

capital stock of The First
National Bank 1'rnm
of Amarillo,000 tn
Tex.,
mnvoiocS
1 ICO

from

$1,200,000 to

$2,000,000 eflective Aug. 1. (Num-

ber of shares outstanding—200,000
shares, par value $10.) .
,
...
i
j,;H '
p. " >
The United States National Bank

effective

stock

new

Aug.

Craver as
utilthe Chase

iii

tli«

promoted

31.

were

value .$19.)

par
.

JL&rzclcr

Wfk

W ltti

Irving Lundborg & Co. *

Both offi¬

July

(Number of shares outstanding—

(Special to The Financial Chronicle)

SAN

FRANCISCO,

Calif.

—

Joseph E. Larzeler has become as¬
sociated with Irving Lundborg &

i.v

Tjivra

ih/v

rinonpiui

Co., 310 Sansome Street, members
of the New York and Pacific Coast

590.2
590.2

275.4

from

418.7

sistant

Assistant

Trust

Irving

As¬

Treasurer

Controller.
*

124.6

Co.

W. E. Hutton Adds

Company New
the promotions

(Special to The Financial Chronicle)

announces

CINCINNATI, Ohio—Thomas C.

Borchert, Jr., Henry C. Farrand,
—John C. Kfngman-and Donald C.
$5,286.7 Sheldon to Assistant Vice-Presi-

Haydock, Jr. has become connected with W. E. Hutton & Co.,
First National Bank Building,

Hamilton

Adams,

Fred

253.9

$3,912.4

Companies

increased

was

department 11 o m M- gtock Exchanges. Mr. Larzeler
si stunt
Tieasuier t o
was
formerly with William R
Vice-President and Adam C. Heck Qtaafo & rri and Win* it t.pp x
Staats
Co. Q11r1 Irving H. Lee &

,514.3

201.2

Paul-

Total

of the

By a stock dividend, the com-

George L.

1953.

280.5

120.6

Company Pitts¬
this fall in

open

planning

Union Pacific

12.

officers

Other

$991.4

Central

York

will

Pa.,

mon

the staff in 1928 and
Assistant Vice-Presi¬

been

have

$822.0

Southern Pacific

joined

287.9

Harry

department

itics

cers

Company

Bank,

Vice-Presidents in the public

announced

No.

ment made on Aug. 13 by Frank

Manhattan Bank New York were

Operutinr R«venues

Trust

and

burgh,

of Directors

Board

sub-manager,

and

Buell

division.

loan

Bank

The aPPom'meI1's„ ofKennedy 300,000 shares,

hioltk

ihp

supervisor

sji

i;i

A new office of Mellon National

\xfr\C

„

1,452.5
1,324.5

Faper

will

Broad Street.

deputy

to Berwyn, Pa.

San Diego, Calif., incx eased_ its

415.0

International

transferred

common^.ita^ stoc^frenn $2,-

372.8

Johns-Manville

Bank, and new title Upper Main
J
—
Line
Bank,
with
head
office-

formerly

Standard Oil of California__

National Bank, Berwyn Pa
merged under charter of Paoli

wyn

Magruder .as Manager of the City

Union Carbide

13 appointed

Aug.

Paoli Bank, Paoli, Pa., and Ber-

Harmony Township at 27.12 Duss

by Robert J. Brey-

Bank's

The
on

10.

shares,-, par value $5.) ; •

Avenue according to an announce-

logle, Vice-President. Mr. Breylogic has been Vice-President and
Manager of the Bank's City Office
Old

(Number
outstanding — 125,000

supervision

dom, will retire on Oct. 1 and

117

'5,000

$625,000 by the sale of new

in charge of the Bank's branches
and business in the United King-

«...

Berkeley

new

Hayden, Vice-President,

be succeeded

stock

roia

a!l

Carl W.

787.7

Nickel

London.

Steel

___

London

qomuu

was

$10,796.4
1,917.4
2,326.7

Branch at 17 Btulon St.,

Square

Gettysburg, la., was increased
$250,000 ,t<M $37.5,000; totfVa

MacFadden,

Oct. 1 and have direct

484.5
616.8
361.4
411.6
212.0

661.8

duPont-—

move

Aug.

who has "been in
charge of the Bank's business in

■

Robert

Vlce-Presidenh

served

.v«

12 Railroads

vs.

1956

1916

Motors

announced

York

New

Bank

v;„lT£.nnMnnt.,r

(Millions)

where he, had

capital
.

The Gettysburg National Bank,

City

Office

Subsequently,

Later,

ss ,-j ^

common
_

National

First

l'at'an Company three years later.

be too late.

The

the_position of branch

branches

<•«/

The

stock, effective July ,3r.t,

with Bank of the Man-

manager
-

may

Cj.

Chair-

bank's

department.

and rose to

M
quick

because

1920's

of 23, he was made an officer

age

and

National

in the

Commerce

Davis

career

luxcl U1L ldCls ana

the

with Irving Trust Company's

and

foreign

action to res,ore the railroads fi"

Mr.

tl c feUl 1

ask

Company

the

of the Board.

man

the Manhattan Company.

Penny

Bank

—

•

for-? be

TABLE VII

No.

Catharine,

ldentl.

was

Federal

Vice-President

national de¬

industry

announce-

M.
*«.,•;yamoi^

Jacksonville

the

vice-President

of life,'-people

railroad

ment made on Aug. .13 by Robert

Trust

Mr. Davis

ofAtlanta.

Mr.

and the future of

way

according to

York,

sueowei-

director

Bank of

convinced

question, "can the

the logical

made President and

a
«

American

pired last
banking

the

concern

shares, par value $50.)

7,000

Theodore

Board.

years."

of-the

American

d,«nA.have

raise

may

some

(Number of shares outstanding—•

„

increased

rommpn^^pittl stock Horn

New York, and its predecesAmerican Trust Co., for

liranch

states¬

for

...

;

Bank

Jersev

was

are

Bank

together

get

harmoniously

program,

may

eyebrows and

■

National

New

$250,000 to $350,000 by the sale of
new
stock
effective
July
30.

legislators and opinion leaders

These calculations

economy, our current

that

•

„....

First

The

Canada, is
moving his headquarters to London where he will
-associated with
Robert
J.
merly President of the Pan Amer-; Breyfogle, Vice-President, in the
jcan Bank 0f Miami. He held that supervision of the Bank's affairs
1'ost for nine years. He served in the United Kingdom. Mr. Mac-

the benefit of the current national

approximately $600
I
'

million.

few

industrial

that of

divided

Wliinnanv

l»resident. January, 1956.
^n?y
? r?' senlor

•

increase in

„

£or, Pan

OQod

$200

Splitting

Today, however,!

balance with the Federal tax col¬
lector

work

and

be brought down to

taxes.

the

with

pany,

management. For the
I am often critical

lack

corpmon

capi¬

new

usi 671

^ Schwamm has been
fied

m> many years ex-

manship-needed

balance of $1.3

the

Assuming

tnwn

Penny

reason

over

additional

elected
ctcctuu

was
w«o

railroad

operating expenses
million, and an

million for interest

Davis, Jr.

$500

man

same

would.... produce
freight
of some $11 billion, an

increase in

^Pnny looks back, oyer a 151,671.47.

and

1955

average

today should

have

always

was

naturally aware of,
sympathetic to, the problems

and

reiter¬

The

increase of around $2 billion
those

increases

recently announced freight

analyst, I

to the 677 billion ton-miles moved

for« rate

B.ccailse of

they

than;!.650. Applying that rate

revenues

August

trust

Walter R. Bonn has been, elected
Harvey L. Schwamm, (heretp- an Assistant Treasurer of Dollar
fore a Director, was named Chair-j Saving^ Bank of the City of New

n„MinQ

of present

percentage

structures

ate

tionSv

a1^

ttelr requestrateIS

make

creases

tn thp hank'* rmt

suture. 1 have in my way

„

stock<4>?$1,397,910,

capital

Wk
.
« F
• vt
The board of directors of Amer- officer of Irving Trust Company

tiguies necessary to: contain thejfT)any
need for more adequate rates.

officer "of

The railroad.industry must con
tinue to press foi a more adequate

410%,

Spokesmen for the railroads eet
off

chief

™

the

l»e btate 01.lexas-

ton-mile rate.
,

BmrH

„

reasonable

J.» after' serving

^in -u§ coeds David H. G. Penny who was
®? ?S grantel; named Vice-Chairman of, the
flh because Of j30ard, a newly created post. The
®
y 11 vo v
1S
0 elections of Mr. Davis and of Mr.

(12 companies), the writer offers
a series of calculations of what he
considers constitutes

Robert

fhi

of
na-

and

the receiving association will have

,,,,

in
ica" TrU^ Company, New York,, and National Bank of Commerce,
.fSS.iS announced on Aug. 12 three elec*
•
'•
fiddled lionQ

»•

figures

gross

the

company

assienpd

costs

-too little and tnniate"
'too little and too late.'

economy stands at 200%;
of
railroad
operation
at

costs

ArnoldTame

-1-

In
terms
index to our

the

freight

nan..

consid-

presented.

1946—since

resulted in action that

1946, is far

vs.

Bank

as an Assistant Treasurer

our

lesserv$2 billion proposed

requests

low and especially in
eration of the facts and

while Rome burned." Tn the past

too

herein

appointment

•

Th„ Commission mieht keen

...

increase.

absorb that Increase of

increase

1.400 freight rate per ton-

The
A11C

$714 billion, then the American
public and industry can pay the

We conclude v/ith the premise

National

Oneida

At the effective dafh of merger,

economy and the users of

can

much

stock of $1,-

common

The merger was effected
charter' arid
title of

Trust Company of Utica."

would

mind the old adage "Nero

Conclusion

"The

CAPITALIZATIONS

Is
\t-r>-J ;S
SE hbtSn^dM Vice-Pres'dentof the American
fhe State
Texas
embiacing Trust Co. until he was elected

steel

and

Utica.

revenue

national

transportation industry,

■X.-kj

■

REVISED

chairman

..AMi

that

increase

Y., with

Bank

Utica,

underry the

freight

evils and, bring prosperity to the

...

OFFICERS, ETC.

with
into

Y.,

$100,000,

National

Company

307,910.

•

$7V2 billion is 3.7 times
the projection I have offered as a

subsidies and to adopt the
principle of;, the.user paying the
costs, he would welcome them
into the same Plan.,;, Such action
oh the part of all .segments.of the
industry,. in Mr..Symes' opinion,
would go -far to correct present

that

willing to

are

BRANCHES

various national and state banks,;mto 139,791 shares of common
5
uVS5
' of Manufacturers Trust Company, he became President of the then stock of the par value of $10 each;
Production inboth years New York, was announced on new Pan American Bank of surplus of* $3,750,000; and undiJate:' That; in- Aug. 9 by Horace C. Flanigan, Miami.
■ ,
■
'
vided profits of not less than

ffs

forego

entire

NEW

Applied to the estimated 1957 production of 115 mil-

its

put

CONSOLIDATIONS
NEW

Tthforllhpy raa-i° luul™3inJre.as®.overArnold

and

progress

h0w 1?
a

Trust

since 1946.

must find a new source of capital
if

follows:

in 1945 the price of a ton of
steel averaged $53. At this time,
steel is priced at around1 $119 per
ton, an increase of some $66 a ton

stock

Oneida

The

News About Banks

Camden,

common

istration's own- principle, that -a crease of $2 billion as calculated?"
user must pay the cost of services
My (personal answer to that
lias

(705)

dents.

<■'

15)56

1946

Industrials

Rails:

195(5

410%.
1946

1.40%

—

1956

194(5

Messrs,

137%.

Sheldon

4.12%.

-Net Income-—s

Net Income

$41 5

1956

$87.5

$847.4

Pennsylvania

383.4

Southern Pacific.—

General

2."

Bethlehem

Steel

41.7

Standard Oil of California-

67.0

267.8

Union

57.2

Eastman Kodak

35.7

No.

161.4

Motors-.

duPont

Carbide

International

Paper-_

Johns-Manville

American Smelting & Refin

12.

American Cyanamid g____

Aircraft

Total ,3 2Companies_v
t'j
195(5

of
in

15(4(5
%

146.2

Santa

96.3

86.6

8.
9.

66.7

23.5

32.2

men

16.3

10.

44.2

12.

St.

25.0

6.4

Louisville & Nashville

Paul

8.5

V
I«»">(>

-P-J

27ii% —15)5(5

45)0%.

—

Total 12 Companies
%

____

of 1046=1 i30%';

J '

Deficit'.
I'

$180.5
1

•*-*.

(Special to The Financial Chronicle)

>xl

.It

A merger

Ohio

—

Leon

•

...

Sacks w w'tli CJooc body & Co

National City East Sixth Building.
Green, Erb Adds
(Special to The Financial Chronicle)

Ohio —Richard
affiliated with
Erb & Co., Inc., N. B. C.

CLEVELAND,

-iirni'f

Qaeckle is now

Greerit

Banks

members
west

Stock

the

Mid-

Exchange.

t!i

certificate was issued

by the Office of Comp¬
troller of the Currency approving
and making effective as of
the
31

the

are assigned to the
various branch offices.

July

CLEVELAND,
_

11.8

11.6

Atlantic Coast Line

11.

$2,236.4

5.5

37.1
39.8

»k:i

38.9

—

15.7

$489.8

I9tf!

70.2

"Nickel Plate"

449%.
Ralls:

39.0

Chesapeake & Ohio
Great Northern

25.0

78 6

In addition, Benjamin
W.
Brown, David J. Dowd, Robert H.
Kaupe, Roger A, Olson, Ernest W,
tv
omuh
Reed and William D. Smith were
named Assistant secretaries. These

Southern Railway

31.1

the Lexington Avenue

39*1

28.4

94.2

_____

8.7

United

11.

With Goodbody & Co.

Office.

54 5

Pacific

6.1

10.

Mr. Borchert, Jr. with

25.7
:;T0.4

9.4

Union

5.8

Nickel

Farrand

9.3

New

•Mr','

fice*

30.4

York Central

29.7

Industrials

194(5

Company

1916

fice arid

(Millions)

112.6

Company

195(5

is associated
with tliS Woolworth Branch Of-

(Millions)
No.

Adams, Kingman and
associated with 1he

are

Bank's1'Empire State Branch Of¬

With

Paine, Webber

(Special to The Financial

COLUMBUS, Ohio

Evans;
Jackson

Bank

CnjiONicipV
—

David L.

with Paine,. -Webber*
&
Curtis,
imntingcoit

Building.

•

■

•

Continued from page

Washington was doing to stop "in¬
flation." I told him what steps I

and

taken

being

were

whether he thought the
were in favor
of lower

asked him

farmers

He said' that, of
they were NOT. Like too
many of us he wanted inflation
for the products he sold and de¬
flation for the products he bought.
Tt is this spirit today which cries
against what is loosely known as
"tight money." The popular way
of looking at only one side of a
coin has always seemed strange
to me. One wants to buy a new
prices.

wheat

course,

appliance on the installment plan.
payment is bigger than

The down

expected and the interest rate is
shade higher. So, naturally, he

join the crowd and complain
tight and expensive money.
But what about the other side

must

about

the

his

value

her son's college

policy? Or, his life in¬

Or, the value of the in¬
earned in his sav¬

surance?

credit

terest

Believe me, if we
the pros and

account?

ings

about the

What

picture?

endowment

could evaluate all of

all

cons

sound

dollar

be for as
this troubled

would

permit.

would

world

Security and Monetary
Fluctuation
'

security in

To achieve hnauciax
a

necessary

the fluctuating
One certainly

allow for

first

value

money.

just ignore it. I feel it would
to think that inflation

can't

foolish

is with

indefinitely. We would

perpetual
pessimists and perpetual defla¬
tionists. In short, one either has to
try to be as right as one can about
the trend or, lacking the foresight,
lose

also

[*[

world, it is

troubled

111;

most of

will have to hedge.

much publicity
has been given to inflation that I
think some should be given to the
of

possibility
t

now,

wholesale

reversal

Looking

trend.

the
of

chart

prices, they were

way

in 1814. After that, prices went
until about 1860 and then

down

they flared up for five years and
again in 1896. Then came
by

rise to 1919, followed
break in prices to 1932.

sharp
the

Since

overall basis,
prices have been increasing with
only the most infinitesimal and
minor
interruptions. I have not
1932,

Consulted

historians but I am
quite sure that in the three previ¬
ous
periods of high prices since
1800, a belief in the persistence of
the
trend probably was just
as
rampant as the belief largely held

erally

tion.

Once

when

major

reached

threat of

time

the

have

of infla¬

cause

war

deflation is almost certain.
"cold war," which has been

war,

The
with

almost

since

end

the

rarely discussed. Money is

usually

medium

of ex¬

thought

paid for things and paying
things. It is also the most con¬
venient way
of storing surplus
current
earnings over current
ing

for

access to others
serious
consideration
given to a possible

to have

can,

should

position to attempt to fore¬
cast, then by all means don't be
lulled into
forgetting to hedge.
We

all

can

wish

price of cutting down
potential results, and I will dis¬
the

pay

cuss

later what I think is the easi¬

est way

to hedge.

It is worth
trends

pointing out that the

individual

do not all follow this

commodities

general pat¬

tern. We have had and have right
now

individual
markets
by
lower
prices.
long-lasting —
brief. Inflation and political
many

characterized
Some
some

have

regulation
mines.

The

been

have

priqp

the

hurt

made mistakes.

spendthrift and

The

object

not

who

man

saves

every¬

one

no.

relative

the

rationing
through running a hotel his living would
other things that de¬ be free and he would save his
crease the freedom of the flow of
salary for a blissful retirement in
money.
Alongside of the dollar his homeland. The only trouble
coupons

earned

saved

green

blue

allotted

red

ration

the

coupon

by other means.

was

that he

the

value

faster
ms

Taxes

of money.

becomes less valua¬
am
not thinking of income
but
of
spendable money,

crease

ble.

change anu affect
As taxes in¬

also

value

the

money

taxes

which is affected by various types
sales

sales

taxes

concealed

this

and

individual

Most

taxes.

country

are

they add a
large percentage to the purchase
today

Thus, the saver

an article.
of many years ago

price of
have
he

had

who would not
these taxes had

pay

spent his money then, has seen

part

the

disenfranchised.
have

the

taxes

and

which
not

are

well

Finally,
factor
the

can

the

personal

the

value

individual.

the

all understand with¬

effort

basic

why

needs

returns

thing else.

The

old age.

and

diminishing

works

money

be¬

different

law of

which

with

same

money

has

in both youth

There is also

just

with

the

every¬

one

has

it, the less its value is appreciated.
People who lack sufficient money
is

difficult

one's

the

but

personal fac¬

later

the

state

future.

Ill

chance

pay

attention

money,

it.

Money
when it is spent.

to set out

Spending

learning to

well

how

is only useful
If it remains as

collector

tax

hardly think it is
financial

security

remove,

example of

intelligent
planning.
Here again
we
deal
with a strictly individual factor—
or

the difference between the person
who in his youth or even later in
can

plan intelligently and the

who

can

overall

His

his

that?-, when

the

breadwinner
and

own

an¬

the

for the

out

not.

answer

course.

policies

back

have

others

altered

been

good

can

here

not

give
can

had
as

know,

than

and
I

V;v/'V./■",...

••

hindsight., I

that I

would

did

have,
at

lot

had

all.

realistic, precise and educa¬

tional exposition.

I probably will
thought of as prejudiced but
sincerely I feel real estate even
be

more than stocks is for the
expert
It has wonderful possibilities as an
offensive
equity for the

just don't think it is for the "man

achieve, financial se¬
curity, one must learn .how much
to save and how much to spend
to

Thus,

the

discussed

Having

the

dri

street"

the way that

good investment trust
for' him." ( ' 1 /;■'/

done..•:

and how each should be

be good
•' :

can

The legal definition of a home
is that it is real estate. I, person¬

general¬

it should be obvious that
ally, prefer thinking of a home as
any well conceived financial pro¬
being personal property
rather
gram must combine offensive as than
considering it an investment
well as defensive efforts for one's
ities,

from

occurs

think of homes

fer,
a

people

toe

directed to

are

only

his

have

I
a

their

not,

are

people who could

many

advantage

had

anything.

anyone

not

oppor¬

beep

for

could

sure

in talking about the value

the

much despised "bundle of
receipts."
"

rent

not

that

too

old

remember

practically nothing

value

outside

had

any

cash

hard

tween 1929 and 1932.

be¬

Many people
time of

refer to this period as the
the "stock market crash."
even

this

seen

"the

native

San

great

n sea a,

Francisco

fire."

the

went, clown

era,/ not

market;

The stock market

the

just

1906

18,

1929-32

bracket.

To me,

Fran

calling April

Everything

stock
the

was

whipping bOy and received
publicity because it was the

Everything can't come off the top.
It is also important to weigh the

the

owner¬

Those of them who realized

bracket" when

average

Believe it

the, limitations

join

often than not people should

think

and

owing

taken

ship.

person's thinking

top

only when it
rarely when

bought

liability involved in home

All of

ever

and
home

tunities

that for most people,

that

tar

people asked if they
debt or owed any money.

meant

have

at the
simple tables which compare taxexempt income with income re¬
tables

.think

necessity.

There

affairs.

taxable bones.

pre¬

mortgage and promissory note
their home was either a debt

thought than just looking

from

would

They answered, "No."
Later, it
developed that they did not think

buying tax-exempt bonds as a de¬
fensive investment requires more

turns

want
but

afforded

had any

Otherwise, one will

say

I have heard

perhaps unknowingly an im¬

will

it is

portfolio of defla¬

Tax-Exempts'

can

in¬
surance
to cover loss and insur¬
ance
a'
an
investment.
Invest¬
ment insurance must be added to

should

calculations between

portant imbalance in his

will

feather

possiole feam. in¬
should be sharply divided

hedges.

times.

I said, to consider a home
personal possession like cloth¬
as

ing, an automobile, a watch or a
tennis racket. I realize that many

principal.
Risks
should be
only when it is posible to
balance a possible loss against a

have

in hard

cash

taken

tion

excellent in¬

discussed, which includes the dif¬
ficulty of converting a home into

one's defensive

vestment against inflation.
Rarely
is the other side of the picture

unproductive to attempt to seek a
small increase in net income after
taxes and risk an important loss

one's

our most

goals. People today, due
primarily to our inflationary times,

purchasing power of money or an
in money rates and not
from a lack of liquidity.
It is

one

lifetime

increase

surance

defensive.

probably

desired and treasured possessions.
It is surely one of our important

that which
decrease
in the

offensive

home is

I want

in value inevitably.

crease

either

to hold the decrease to

can

would

to¬

associates and I had
many years.
It was a

my,

for

possessed

cision.

the

foresight

looked ahead

worked

that

however,

better
never

that

well

wonderfully

look

look back

can

followed

was

but; simply to plant the it lacks other attributes
thought jand personal by stocks, perhaps the most im¬
individual consideration and, de-; portant Lnf Which is
liquidity. I

Advice

human and human abilities really
can rank very low in the scale as

real estate

some

how

ago

collateral advantages
currently de¬
nied to the stock market.'
However,

take the risk.
I have tried to follow the prin¬
ciple of looking ahead with some
degree of success.
We are all

Today'"?

long

who really knows what he is
do¬
ing. 0 It: has tax advantages and

iealiy important

this

reverse

perhaps
get a real profit and consequently
a
real future, he was not in the
position to put up the capital or

the
one

market

principles

governed

days when I
raised

spend

self

the

capital and

somewhat

were

times.

the

growing

up,

well

the

was

young

men

income

and

never

So, I budgeted

basis

my¬

building up
spending in any

never

Of course,- to

place

able

money arid what he could get was

of my net

begin with,

swings of long-term tax¬
bonds against their tax ex¬

from
first

part of the offensive side of

security,

one

lectible

this

way

himself

business for

works

for

either

country

the

growth

was

with the prosperity and

is tied up

the

011

could

one

financial

his

get
pages

every paper in the land.
People
who bought real estate mortgages
found them "under water, uncol¬

(in the form of wages)
one's personal efforts is the

Income

financial

where

printed

empt income return.

taught

were

year more than 6%

one

and

later

postponed

rium.

Even

frozen for

their

payment

morato¬
deposits were
leeal

bank

while.

else. /

If one doesn't feel competent or
generally larger if willing- to cope with-having his
times are good.
Although many affairs in gear with inflation or
situation changed.
Today I think
without experience find it hard to deflation, by all means as I said
the
average
young
mam thinks
more of security.
He looks for it believe, earnings will generally be before, he should hedge.
to be supplied by the government less when times are ;bad.
What I mean by hedgihg is that
or his employer or an inheritance
Next in many cases comes the investments should be split in half
rather than through his own ef¬ part of income generated
by a between defensive and offensive
forts.
Thus, he tends to spend business, which reflects the profits types. The best hed*e for those
6%

was

nothing.

credit in the bank for the inher¬

itance

present

vain;

one.

the

for

came

that

save

The

out of balance in

their*« income

worth.

important in looking for financial
security in a troubled world to
also

innation

plans.

situation with people I know who
live so much in the present and up

force

spend

add

personal

than

seen

dropped

case,

was

ways

have

las

his

future

whple plan

make

Usefulness

his

may

years

What this all adds up to as far
as
I am concerned is that it is

has

sacrifice
for

touch capital.

savings quite valuable.

one

111

financial

to alter plans and may

one

so,

his

only

unpredictable

health

believe

true.

A variation of\the

tor

franc

ability

measured against a theoretical par

varies

much

yond

other taxes
high and that are

there

dollar

out

concealed

concealed.

which

think

countries

high

many

very

pue.

the

his

and

most

not

for

seeds

money

Other

same

also

his

value

than

his francs

wrecked

Value

Money

and

Taxes

saved

answer, *

and

cautious

because

swer

live for, today.
to overspend

constantly be short and thus
become a dependent as one grows
older.
On the other hand, one
should not be a miser or overly

the

knows

this talk is not to give

■

person

I naturally also
The whole theme

As I said before,

be something of

can

artificial

life

pound

owned

thing for the day when he expects
also changes his ship to come in or when he
availability of expects to retire. Often the peo¬
goods and services. Here in this ple will find that when the time savings. Te defensive investments
country
where
there
are
few comes they can not recognize it are fixed dollar investments such
things one can't buy if one can or can not change. Too often it is as cash, bonds, insurance, mort¬
Here my advice can
pay for them, this possible lack so late in life that the time lor gages, etc.
oe given in one sentence. It is that
of
availability is rarely under¬ enjoyment has passed.
stood. But in many foreign coun¬
Years ago 1 went to Indo China one should not quibble with safety
tries shortages are a basic fact of and visited the most marvelous or liquidity for the sake of in¬
life.
Shortages
have
happened ruin in the world, the deserted come. Liquidity and safety come
from cash and bank deposits and
here and they can happen again.
city of Ankor Wat. The French
Money
loses
value in
times hotel keeper there told me he.had relatively short-term or at least
mixed
when rationing is imposed. The left his
maturity government or
family in France years
basic
fundamental
rationing of ago to take the higher
paying job money rate bonds. In inflationary
times such investments will de¬
supply and demand is aided by at Ankor. His idea was that in

gold

copper

plummeted from'46' cents

other half he

Its value, however,

«.

with

change in the direction of dollar
value. If it is not possible to be
in the

think worked out in my case,.

hedging

same

needs.

very

things

change or a measure of value. It
is the most convenient way of be¬

this

who

the

personally consider these

back

■

day that

very

and may

sible to

oversave.

My feeling is that

resigning oneself to any given
income
or
administrative /level,
one
should take a chance in his

elementary thinking principle mentioned in connec¬
with the varying purchas¬
to feel that the only change in tion
the value of money comes from ing power of money.
One should
sort
of
divide
a change in its purchasing power.
up
his
current
There is another aspect about budget and be thrifty and look to
the value of money which I find tomorrow with half of it. With the
is

the last World War,

one's individual situation it is pos¬

can: He told
be¬ valuable

fore

enjoyment of
Similarly, it is

■ •

•

Thursday, August 15,1957

Real Is Your Real Estate

beyond

intelligence

own

certainly
unwise
not
to
save
enough and to be short of capital young years and flex his muscles
when
an
opportunity or emer-> to try and see how strong he is. It
will be time enough, after that to i,
gency occurs. The intelligent ones
,/;•••
should be able to figure this bal¬ assess one's limitations.
This
is one of the policies
I
ance out.
The others will have to
fall

1932-1957.

find

has postponed
continue to postpone any
deflation. Thus, I feel that if in

period

price

rising

value

War

the trend

which could be cited for the gen¬

any

today.

many

are

other examples against

down

the

There

soft.

remains

life

full

our

not lift us.

It is taking

balance.

from

away

pound, and

in 1956 to 2914 cents a

being

Right

!**

i •

levels;

differing

•

which

sideration.

Stocks and Security
thought

reach

only suggest the subject-for con¬
The ideal for which

to strive is

•

(706)

and Financial Chronicle

The Commercial
30

not

But

only his

with

less

Earnings

income

but

from

purchases

than

of his future in¬
is

way

of life

that must be the modern way be¬
cause

it. I

everybodv

seems

ever an opportunity came
this type of living would
never provide the
savings neces¬
sary for a person
to be able to

have

it... I know that

varying degrees of
we
all tend to

that

rather

who

are

ment is of course

equity

means

truly offensive

to financial security.

;

•

Estate

and

Security

between
trusts.

I'd like to turn to real estate
a

means

While Bill

talk to

for

Zeckendorf is
a

title

his

simple

nearest

the

bread fluctuations

one

offensive half would

estate, I have a humh
about what he is going to discuss
the

will

talk,

"How

one

lpt

did

this

an^ tkp

would be worth
is

thing

thought-free protection against

going to

later date

and
investment
investment

bonds

general

This

about real

from

type

equally

funds

government

security.

financial

this forum at

financially expert is

not

split investment

policy
Real

I think if

all

investment

from

to be doing

along,

take advantage of

are

cash

someone

employment of time.
This return on an equity invest¬

probably old-fashioned but

aoihty ,ancl

one

the

current

some

well.

time went

installment

mortgages
come

only human to

done

much

can

years
now

receive.

ago, the
be worth

^pfmsive

little less.
say

better

half

So, it

I could have

had

not

Number 5664

186

Volume

hedged at" all.
In this respect
hedging temporarily or seemingly

at a

high spot in 1937—went down
later

and

several

costs money.

This, however, is assuming one
was right.
The cost of hedging is

like the cost

insurance pol¬

recovered,

months

measured

years

have

given

premiums on a fire policy if
house doesn't burn down. But

the
his

sults,

but

it does?

suppose

This;; brings

common

'stocks, which is the subject of
this talk and which I think are

practical

best

the

in¬

means

inconsistent,

let

that one man's meat can
another man's poison.
"What
I
have
to say is highly
colored by my 35 years' experi¬
ence.. This experience was gained

saying

slightly different

1936-46
and

ulations, etc.,
with

period

because

let

son

and

look

to date

investment of about $1,000

long-term
of

1946,

what I

happened to buy or sell or learned

It is" also experience

personally.

other

that comes from seeing what

people have been doing with in¬
vestments—all kinds of people and
If I were

all kinds of investments.

vestors

would

value

the

think

folio

I know of

1921.

compromise

just

experience

this

and

period
which

people with enormously vary¬

with

abilities,

ing

ety of aims.
of

ence's

great vari¬

There are also differ¬

the

different

very

'investment

utmost

importance which have to do with
Each
the

fects

of these factors af¬

one

result of

net

sometimes much

ment

dividend rate.

' " /

t.be

and

bottom

say

does not know

person

and

stocks

about

does

; :

that if a
great deal
not

know

portion of one's funds

stock
be>

confined

the

top¬

investment trusts." I could
name them of course, but.they are
so well known that this yvould be

flight

peril uoiig, The big investment
give safe and secure aver¬

trusts

his

own,

obvious leaders.
the

most

begin

with

the

These would be

popular

of these

find

and

them

companies.

companies are easy

for that matter many

of the popular
Averages.
As a part

are

Dow-Jones
of

one's own.
starts

person

biggest, best known, most suc¬

cessful,
Lists
to

the

part

the

general discussion of put¬
ting
one's
funds
in
trusts
as
against individual stock selection,

because

had

deflation

would have been different.

far
as
I am concerned, is the influ¬
ence of the changing value of the
dollar and related factors like in¬
terest
rates.
The
comparison
as

absolutely nothing insofar
in the next

means
as

determinant here,

sole

the

what might iiappen

except

years

the

which

this

ten-year pe¬

same

Dow Industrial Average,

the

suggested

place to

for individual stock

look

255%.
What
would have happened to the in¬
dividual who was on his own to
the extent that he confined him¬
self to the big leaders and who
selection,

was

through the whole period'1
Well, the determining factor here
would of course first be his be¬

rode

inflation

lief

over

Without

covered.

such

the
a

time
back¬

ground his major stock selections
relatively unim¬

would have been

portant.

sense

reailv the smart¬

the

block he would
held United Air¬

man

which

craft,

750%'.

stocks

ter

one

of the Dow

Industrials, which went up

Jones

that

In fact, 13 of the 30
made up the Dow-

Industrial Average did bet¬

than

the

Average.

400%; General Mo¬
tors, up about the same 400%;
Standard
Oil ofCalifornia, up
about 315%; and so.forth.
Seventeen stocks did not do as
the next ten ypars.
It could be
but
I
personally doubt it very well as the Average of which they
are
a part.
Allied Chemical, for
much.
On the other hand, in the
t°n years before, namely, 1937 to
examole, was up onlv 139%; Sears
1946,

find the market started

not

but

gain

io%

25% gain

i00%

gain and more After
tbe situation flowers, it naturally
a

is selling near t38; MontWard with a high of close consolidates for a while—sometoday at 39.
There are times several years. The price rise
countless
examples to illustrate m0re often than not is overdone
this point.
I would think ■ that .-a and for a while a correction takes

13% gain over

mentality that would stick with
a
cood thing would tend to stick
with
a
bad one unless he was
truly

fund.

genius.

Let's go a
the

statue

j feej the proper aim is to

piace

for these

jook

gurely if

50%.

make
100%

realization periods,

thinks he can make
is half right, he will

0ne

and

100%;

little further along in
of our imaginary in-

of any decade are paying shares and with a few exthe great growth ceptions, only shares listed on the
Exchange.
• ■
,
subsequent period.

growth stocks

uuiikelv

stocks of

The

Dividend

Record

■

Dividends received bv the Dow-

Industrial

Jones

varied.

stocks

While I think the important

point

investing for financial security

capital

gains. I

dividends

discuss

would like to
for

moment.

only 126%.

The

much,
providing one just bought and sat.
In this case, the problem is anticipa ting the poorer acting industries
and avoiding them. Some of these
since 1946 have been the hard and

period.

have

American

this
tgn-y^ar
pointed out that

which

Telephone,
of

thought

is commonly
income stock,

paid out

Motors,

over

over $1,100; Genera1
$1,600: and General
At the time

Flectric, close to $950.

purchase some of the yields on

stocks

these

tor

may

seemed

have

but to the foresighted

low

think

not

that

gains are confined to penny

they have

proved very much

trying to be practi¬
and helpful.
Some
years ago a famed theatrical pro¬
ducer read my book and asked me
to rome up aod +oU< to him ahout
Now, I

realistic

cal,

paragraphs he had marked.
wanted to know whether this

very

that

might be practical.

him in my case

and

I told

the practice came

writing

about

came

to do a

have

little edu¬

within

What

bought
stock

be expected

tried

vestor

sat

average
A calcula-

on1

rat

„

Irfu

selected.

want

mention

romances

many

reasons

why it

is very difficult to do this. Every
just is not favorable for such

every

I think, however,

the

has been 9

take into consideration

compound-

either profits
d vd
of $1,000 1111 a1

investment

stock

?fJer

<£9

F^te of

$1,000 investment

Q7JeaFf w.ou1^

not

$2,375 after taxes.
By not
compounding we can approximate
the position of the investor who
sits with his original investment
mto

passing the dream stories and
one hears talked about.
over a period of time.
There is a classic story about the
Of
course,
compounding diviman
who
in
3914
bought
100
dends would make these figures
shares of International Business
considerably better. The trouble
Machines at a cost of $2,750 and
is most people who compound on
subscribed to all rights up to 1925,

The Difficulties

resuits< Also, one will not be right

yearly appreciation for all stocks

very generous, a

course,

taxes, in

wrong

time.
Each time one is
creates an additional hand-

L'Tast lo^vlars leverage icaP to greatest barsProbably
overcome.
past
20
years
me average
f th
will be

w£u|d

after

$47,500

There are

year

^ year y y
be
ecte

would certainly be a
neriod

worth

years.

inand

less

with it.

average

stocks

all

lor

discriminate

and

tion

point of its 1946 high.
can

guessing and I would just that grew 10 V a yea
Aftp
guess that in a practical wav the
nnniJLi «*nin«! tav
average
investor who bought a y
m
a * nm?
'
leader or a couple of leaders at
$1,750
the end of 1946 and sat with them
JBven better
g o s
would not have picked the risht 25%
a
year, whi h wou d
ones.
If he bought several leaders,

boueht the closer his
results would have approximated
the Average itself.

The impossible

rayon, sugar,

cated

the more he

from six months to a year and a
half, the investor will be able to
compound the profits and watch
his bundle skyrocket.
% '
When 50% a year is realized
and
compounded, then results

feat of taking $1,000, turning it
into $1,500 at the end of the first
the average investor would have year, paying the tax, reinvesting
thought it a remarkable growth the $1,375 left and compounding
industry 10 years ago.
True, its in this manner for 10 consecutive
gross
revenues
have grown but years would result in a fund worth
not its market price.
The gross over $24,000.
It looks a little
revenues of American Airlines inbetter to say start with $10,000
creased from $68 million in 1946 and end up with almost a quarter
to over $200 million in 1956; how- of a million.
Uncompounded, the
ever, the current market price is
$10,000 with a 50 % increase would
is

ing

be realized within periods of

As far as the latter
concerned,
it is a safe bet

after it.
Here

substantial gains

vlf the more
can

air transport.

certain
He

Oil of New Jersey from 1954 to
1955 moved from a low of 24 to a
high of 51, a gain of over 100%,.

including cartobacco, and really go up fast.

soft drinks, textiles,

inves¬

worthwhile.

change

would

I pets and

During

about

Roebuck was up

Personally, I don't think the re-

suits

first

Now if he was

The last
a
bad
period ,to use as an example be¬
cause
it has been practically all
fair weather.
Thus, there is the
danger that the tyro may think
that the key to the last ten years
is the same key that will unlock
in

America

close to 115,

today

favorites

old

near

general market with rising earn-

183 jngs ancj dividends and a rising
43; price earnings ratio and the result

gomery

which fell
Averages in the period
included Woolworth, up

Other

have

During

To name
a
few, duPont, un about 600%:
Standard Oil of New Jersey, up
about
445 %:
General
Electric,

the

(is

1929 high of

its

have

purposes,

cost

the

living.

understandable, I have calculated
the
results
of
investing $1,000
from the end of 1946 to date, a
years

Consoli-

Look

1929, and today
Corporation

$11.8.

person

over

ten

70's.

Radio

paid $540 as dividend income. It
who feels sure he knows what is might be interesting to note that
Standard Gil of New Jersey on
going to happen to the cost of
a similar $1,000 investment would
ten

have boi,<yht and

ten years.

^empires have long Gf realization when earnings ad-

been

lower

price in

average

representing

as,

been

story
Thus,

the

est

over;

the

this can be ap¬
the ^ost of the
stock from $1,000 to $882, so one
can
then consider the $1 000 left
at the end of the ten-year period

the

to first consider
gained and what
might be lost and why.
In order
to
make
a
comparison
fairly

period of

means

This is followed by a period

try.reduce

plied

bond,

rate

money

might be

what

tax

For

discus¬

important

sold

market,
they
would
a
total of
about

This

understood.

not

iow.

snlit up, look at the vance rapidly and a stock goes up.
Utility Average. This As the public begins to look, the
Average sold at a high of 144 in price earnings ratio of, the stock
1929 and tqday is no higher than wjn g0 up also. Combine a rising

theo¬

brought

mutual

above

better

did

time

■

st^rt

recommend

the extent that they do show, they
are

Dow-Jones

If the investor did not

rights,

financial

since

Considering the rights as having

investment trusts and

inflation.

era

suH« not wovtb going after.

these

debentures

with

the

for the future do not show and to

highs because many of

3 929

mean

years.

with the market capitalization will be

companies

holding

their

dated Edison, which sold over

under comparison was an

period

riod

be to do something on

utility

In order to have exer¬
cised
the rights, lie would have
had to put up additional capital.
been

this I

During

these

with

of the

results. Do not disccunt this
word ^"average"' as .meaning
restep above this would

I would find
bought some

several

stock.

gains

Actually,
sion

age

The next

fund

capital

tvpe

realized

trust

also

vestor.
The first step was an in- mining stocks or obscure atomic
behind
large un¬
vestment trust.
The second step 0r uranium shares.
The chances
profits in¬ selected
directly assumes part of the ac-'; only 15%. Woolworth, it should buying the leaders. The third step are that the 100% losses will be
should be to attempt to discrimi- found in these departments.
We
crued tax liability.
Some of the be noted, was one of the great
nate
between
the entire list of have had 100 % gains right along
closed-end investment trusts have growth stocks of the pre-1929 era,
relatively
recognized
operating jn top grade companies. For exlarge unrealized losses or large advancing from about 6 to over
100
from
1919 to 1929.
In fact, companies.
There should be no ample, General Motors from 18 to
tax loss carryovers which can u1this is a good place to divert a promotional shares; with only a
54 jn about two years—as a niattimatcly work out to the benefit
few
moment and sav that the great
exceptions, only dividend- ter of fact a 200%, gain. Standard
of the investor.

end

long-term

the

sure

compared

property.

discussed

rarely

retically would have lost a por¬
tion of his ownership in the total

purchaser of an open-

the

'-ople from whom he can be very
sure
of real help, he should not
flex
his
muscles.
In this case,
should

is that the

the

which

aspect

important

funds

than

Let's start at the beginning and

.v-

invest¬

the net earnings per share or

greed,

personality,, courage/ fear,
etc.

from

applied to reduce cost, would have
amounted to another $185-plus.

kinds

covers many

worth

now

have totaled over
gains distribution,
tax angle can be

would
Capital

$675.

let's
that

but

would

1946

$2,500, an increase of 150%.
Dividend income in the ten-year

and the

agree

net worths-and with a

over

bigger individual

than

stockholdings

end

dollar to his name m

$1,000

;An '/investment

of this port¬

possessor

had

but

What is more, I-don't

$35 million,

exercise

taking into consideration the
of purchasing power either
simply a dollar change.

loss

something like

was

been
I

not

this income.

that

light since. For example, although

small

look

convertible

issues

largest in the world, made at the

all in listed stocks

was

not

have

Taxes

deducted from

over long periods lof
All stocks have their peother stocks prominent let's say riod of building where more often
in 1929 which have not seen day- than not the seeds that are lgid

out

period the company also is¬
rights to subscribe to several

sued

story

guess

growth stocks.

industrial
this

questions I

generated

will

fund

later

and

believe

probaly

invested', everyone probably would
not.
Nevertheless, I will mention
one
individual personal portfolio
that I examined not so long ago.
market

13.5 %.

been

the

life.

fairly difficult to compare
today's
prices
of some
of the

the

when

International

results butes\ and above average aims,
books^—not for This, then, is for the man who
people like this thinks he can way outrun the
exist but if I ever meet one and average and wants to try.
*
have the chance to ask him a few
I don't believe in sitting, and by

generous

Basic Investment Philosophy

experience, these

for

real

same

thought of as having
income,
the
income

decrease

the

invested

are

period would have amounted
$540 and while this stock is

Massachusetts Investors Trust, the

If I told how much I had seen

me.

about $891,

invested,

knew

"ever

everyone

rently

little the smallest in¬

tell how

be worth cur¬

interest and would

have

would

1946

re-

over

period 1914
Or, to bring this story
with
our
comparison,

line

orphans,

and

Telephone; made at the

about

from

by the end4of 1956
paid about $250 in

have

would

approxi¬

year

confined

been

not

from

income

during

1956.

$1,000

$1,000 ten
years later.
This shows no gain.
Dividend income during the ten-

Bonds due in 1967-72 made at the

end

1920

From

over

widows

worth

Treasury

end

bond.

government

American

initial point of compari¬
us
divert for a moment

dividend

This all brings us closer to my
philosophy of investment. It is a
Business Machines at the end of philosophy than can
not be di1946
would
currently
be
up rected at the average man because
1,150%, or worth almost $12,500. it calls for above average attri-

not always

was

stock.

went

paper

$2,700,000 and would have

ceived

and

130.
An in¬
vestment of $1,000 in the favorite

Comparative Performance
As

1929

mately

they exist today.

lot

fact,

government reg¬

are more up

factors

de¬
a

American Tobacco

re¬

stock

the

1929

forget the actual needs of
everyday living and the needs of
paying taxes on income even if it
were
available for reinvestment
and compounding.

total cost of $6,364. At
1956, he would have
shares of I.B.M. valued

end

$200,000

broadly

factors

tax

the

went

than

by being,a stock broker for others
and an
investor for myself and
has

the

had 4,987

went
higher than its 1929 high in 1930.

actually

•

easily

Other averages may

right, -however,

making

serves - me

cline, this stock went down
less than the Average.
In

start

In¬

Tobacco, off

memory

non-volatile

accused

been

have

prices

Dow-Jones

American

was

9%.

large part of it.
of being

least for a

at
I

worst

for

speaking this
is true. However, for camparative
purposes the period 1946 to date
is probably just as good or better

vestment for one's offensive dollar
or

the

before.

done

that

1946

dustrial Average were back to the
same
level
as
had
existed
ten

one could have
much' better by not paying

Naturally,

icy.

(707)

The Commercial and Financial Chronicle

one

the
iimitation of staking
larger and larger sums each time,
0n\ $10>000 €xample> at the end
of the ninth year one would have
t() invest over $175,000 in a lim-

psychol*gical

ited number of situations. There
are not many people who -can
start at $10,000 and advance to
think of risking $175,000. Howey

experjence \s that

Qwn
^

hH the bulVs

it b

ad°Pting the point of view of try.
the maximum.

-n setting one's sights
imDOrtant thins

I believe

high. That's

ther ^portant tfting.
* think, too, that seeing ahead m
the market or in business is no
A
better nearby than

different than using one's eyes.
person can see

Continued

oaop

Continued on page J2

The Commercial and Financial Chronicle

(708)

Continued

from

and this

page

attitude of healthy skep-

ticism
cesses

away.

far

away

things are
a
telescope

When
only

very

made

doing

helping

can

ciiuuni.1

the

also

l&
help. And if its around the corner
can
help.
The same is
v,an
lv- f'

that

select

can

„

basket,

know

alive

nothing
Muiimit,

going

in the next
hour than in the next day. And
its easier to know the next day
than the next week, and certainly
easier to

than

the

year.

So,

forecast

the

month

say

change by trying to visualize situ¬
ations.
Try to stay with the live
One

ones.

will

along.

goes

first

and

better

'he

•

Actually,
the

last

would

that

say

20 years there

only five really bad
flexible, competent,

have been

for the

years

professional

full-time investor. Nineteen thirtyseven
was
a
bad
year.
Others

might include 1940, 1941, 1946 and
1953.

There

have

There

would
about

were

eight years where the
really favorable.

timing

have

could

bonanza

made

For

years.

them

example,

man

who got out early in 1937 and

got

back

greatly

ing

power.

could

number

was

stock

for

buy-

went

capital

paid

than

given

prices

sub-

reduction

The

taxes

cheaper

his

dollars

the

invest

be-

1936 gains

offset

which

do not believe

lien

tor'

the above
the

—

the

diversifica-

this

Remember

only to

have

also

applies
invesinves¬

average

professional
or

ITofessional

connections.

with

man

believe

diversifica¬
A

xvvery gieat fortune 111 America
has been made on the one prin-

£14

i?acu4i Tna LnmhinfP +ha
watching^ the
basket. As a and
matter of
(

the

who

have

methods

miss

and

once

find

for

war,

the best material that is

available for

ketS
bull

uf
consistently

a
and

calli'

and

and mar-

economic

r™f

markets

bear

fororast

forecast

time

something about them.
anrl

have

the

thrv will

euro

miss

To be

nprossarilv

portion

gooj

move.

On (ho otlinr hind
tho
On the other hand,, the rlovnlnn
developof proficiency and success

selection
selection

the

cur
titles

has

of
or

individual

been

se-

mastered

^7^°^1
™al)y individuals

by
1

who have put it
mto practical and profitable use,
Above all, however, I think that

fur

any

for

program

security

have

financial

above

average

ancj

business and of
been made good

to compound profits

think I nave proved that if this
can be done the encl results will
more

naid

along

the

mistakes.

eVG^ be*01'e

Defense

W*Jb even household
autOS,

housing.

outlavs

fact,

fortunes

great

Continued

from

have

only

should

bullish

bearish.

Sitting

stocks

short

and

way

opinions
to

way

fimncial

objective

develop

certainly

the

long

Bie market only if he

Pr out
is

and

achieve

securitv

the

thrmiph
g

been

?.rograi* also ^hows Signs

leveling out though admittedly

high

level. There has
evidence of speculation
particularly in the area of real
very

been

some

estate

values.

The

have

operating

and

Questions About Near-term
Outlook

may

give the pushing back of

the northern

When

frontier

consider-

ably

higher priority in our national policies than we have been

So much for the lon«-ranCTe outIt
would
appear that we

come

look

the

near-term prospect today the
picture appears to be

considerably

confused

range

accustomed to in the past.

outlook.

than
It

the
true

longerthat

having
difficulty.

enjoying a continued general
state oE prosperity. We are going
good reason for confidence ahead with the biggest capital inand the large investment decisions-.vestment program of our
history
being made by people like your- —even
bigger than last year's.
selves
are
ample evidence that Employment thus far in 1957 has
such confidence is sustaining and been
somewhat greater than in
stimulating current business ac- 1956 and incomes are considerably
are

look

good long-term prosonly element in
determining the state of the econpect

omy

the

not

and there

are.

times

when

picture which actually will develop will in fact be the result of
gradual accumulation of day-toUay and year-to-year changes and
decisions reflecting the conditions
a

snd

attitudes

While

want

long-range
t,he

then
to

outlook

prevailing.
know

the

favorable,
great majority of business, de-

cisions

must

to the present

made

position

relation

and

near-

^ Pro.sp.eets:. P.rese.nt earni"gs

and the prospects for the next
few
years are the stuff out of which
most

And

business decisions
this

Which

the

area

are

encounter

made,

time

our

most

practical and urgent problems

levels

certain

Canadian ricture Mixed
These

comments

apply to the
American environ-

North

ment. When we come to look
menu vvnen we come 10 iook spe-

tively

Canada, the contrasts

Our

more active than American,

economy

rapidly

has

tively

bigger

been

than

United States and

growing

that

have

capital

the
rela-

expansion

program. Vet there are

number

mdVsfries where problems have

been

arising.

In
demand

industries

and

policies.; Under

tions,

such

condi-

should certainly have

consider the use of a much wider
arsenal of economic weapons than
those available in the sphere of
monetary policy*
In conclusion, I do not apologize
fVio-f
fnr
nrnnl
stiU obvious that wa§e and other for airing problems nf this
of
kind
costs are rising considerably and The long-range outlook is most
the atm0Sphere is inflation- encouraging but we shall
never
arm

rvrnpi*

airiricf

am o

i.;_

ary

buy stock Many people are talking about creeping inflation, about

some

has

and

realized

such

views

gained general currency, inflation.
~7—u do"more +u~., creep. rPU..„
would
than

most

seriously

Indeed,, in this part of the country, you have the most striking
contrast in

the

Canadian

picture, that between
hand

one

and

business

oil

and

lhatl restraining'
contribute to

even

iutions,
i

downturn in busi-

which could ultimately result
serious

whioh

mithnritipc

farps

ever

our

Ottawa

the

thp

Problem

sarae

American

mnrip

js further complicated

'clo^e

connections

have with the

not wish to

nections

DENVER,

are

New housdown considerably

been

QOP11ritv

Edward

—

Coughlin

inn

added

L.
the

Company,

Puiidino

Inc., Security Building.
Gerald B. Ryan With

Cruttenden. Podesta Co.
(Special to The Financial Chronicle)

con-

DENVER,
Colo. — Gerald
B.
Ryan has become associated wi h

recent years. But the fact remains
that they complicate the Canadian

17th

problem of monetary management,
Many companies operating in
Canada
close

controlled

are

connections

states
States

have

this

and

fected

by tight
are

are

money

about

this

and
a

But

Joins Jonathan Staff
(Saecial to The Financial Chronicle)

LOS

ANGELES, Cal—Leonard
has
joined
the
staff
of

Geller

Jonathan

Co.,

6399

Wi I shire

Boulevard.

With Kerr & Bell
(Special to The Financial Chronicle)

creates

has

problem

Kerr

may

States

ANGELES, Calif.—Earl L.

Bald

be quite

when money is as tight
it is at present. Another problem arising out. of our connections

United

LOS

the

from

difficult

Walston

great

advantage to be able to draw
American sources of capital as
do.

524

Ii.c.

particularly the
There is nothing un-

points of view it is

many

Co.,

for-

with

and

ones.

reasonable

Canadian-owned

Ryan

Co.,
and Dempsey-Tegeler & Co.

they

v.-

Mr.

was

merly

have

less
in Canada

Podesta

Street.

United

that

generally

many

concerns

smaller

the

Cruttenden,

to funds in the United

access

States
than

means

Street,

become

Bell,

Stock

previously
Co.

connected

210

members

Coast

the

with

Seventh

West

Pacific

Exchange.
He was
with
Akin-Lambert

Inc.

is that tight

money, through its quite remarkable power to attract funds across

Two With Mario
(Special to The Financial Chronicle)

some of the domestic industries
wbo find import competition ac-

ST.

LOUIS, Mo.

—

Frederick L.

Kolb and Victor A. Serra
with

Mario"

are

now

Investments, 939 Oak-

ridge Avenue,

starts

to Staff

helpful to Canada.
They most certainly are and have
greatly facilitated our growth in

faildy ample supply.

Colo.

has

gas

aluminum is in

economy
forward in

look

staff

and

economy

not

are

•

which

suggest that these

all

Edwards

relatively small size. I do

our

—

(Special to The Financial Chronicle)

tary authorities. In Canada, howthe

—

Coughlin Adds

™onetary authorities in Ottawa,

In 8eneral >»

which

readjustment.

This .g ^ dilemma facing
irmnPiarv

successful

1980.

the

other, we
face the risk that relaxation might
encourage
inflationary
excesses
eilCOUldge
liuicluuiidi y
calk
a

reaching intelligent somore usually
intelligent

„—1-^-

activity.

ness

are

wheat

of the traditional base metals
have

declined and

problems and the
we

Thus, and workable compromises, tno
face the risk greater will be our progress topolicies m i g h t ward the kind and size of

hand,

0ne

the border in times like the presand ent, works to keep the
exchange
lumber on the^other.
There has rate high. This in turn
may have
also been some
easing in the pres- undesirable consequences on some
sure of demand on
metals; prices °i the export industries and 011
the

country which values its national
identity living beside an economic

--v.

^le

directions, nevertheless, which
slackened,

it must

course

that

two

have

itivity. But

record

others

amount of

indus-

affected being wheat and lumber,

of strate¬

well,

picgeneral
is

good
in
mixed with some

rather

gic considerations

business

while

export

stocks.

common

Canada's Mixed Economic Outlook
momic development and

have

leveled out and the capital investnroeram
also
shows siens

ment

that lt .I3 cvfn D?ore important cificaliy

14.

page

auDear

the

really

our
.

and

equipment

lme.

However, I think
nuvywci, 1 uumv

capi-

schools,

than

Changing will also help to mini- broad
mize

the part of

consumers have
and, though there

roads and

be-

accumulated

lndustry lswe11 e1ulPPed ?nd
consumers
better
stocked

than justify the taxes that
to

has

m0ney

still deficiencies of social

tal such

tries

stocks

should be

money squeeze

35 ^^n^nar^ g^tVem^eTelaS up

tight.
The
backlogs 0f demand

among

tions the

relaxed. Such arguments are irequently advanced and sometimes
supported by the more geneial
statement that money has been
made too tight for a developing
country. On the other hand it is

t° the much^ increased vironment,

supply which had its origin

J!1 the..war- Business is less liquid
^ was

ture

changing

t ie

and

structure

come

results, a changing and flexible
policy must be adopted. The aim
successful

that

years.^ In The

price

^ban

are

over

our

n^v't themselves

thoC"nrcnt * res^aicn °stnffs'^who
reT^h-ch" siaiis wnu
great
work

indications

the

Thursday, August 15, 1957

jn 0ther respects. For example, free of economic problems and
of
despjte the marked rise in inter- problems which are a blend of
boom may be getting tired.
the
The
egt rates> COmmon stocks remain economic and political.
This is one
current period of expansion has
highly popular and many new of the conditions of living in
this
after all
been
going
on
almost
t)0nd jssues are sweetened by sell- world, and it is
particularly a concontinuously since the end or the
jng ^em with stock or rights to dition of life in a relatively smail
to

process,

the

scarcely

can

cal policies should be. On the one this countiy and, to put it
mildly
hand, it may be argued that with y^e should be faced with an
'"agonsigns of easing in certain direc- izing reappraisal of our position

ixra era

.otnra
look at the piesent Picture

semi-

tion because of what I have seen.

but

science.

there

They'may
hit

tion.

don't

geniuses

seen

bull

not

prosperity;

*° consider changing as making seem somewhat greater than in
helpful a VQ}'so" more a™.ar.e tbat he,}s the United States. In the aggreinevitably affected by. his posi- gate Canadian business is rela-

professional

market

known

01*

have

could be bought.
I

and

The number of shares

amount

later

year

purchase

stantially.
cause

increased

bear

period

ment

of these bad years good

some

knowing whether

inflationary period

situation

was

deflationary

indefinite

the

inflation

fail

are

dispassionately,

Science

Not

and

there

think

is too much acceptance of the idea
that we are in an era of creeping

Art

seven

selectivity

paid.

continuance

The art of

cvPo

about

were

where

years

many
•

ex-

got

have

don't

acceptance

money

ly warrants it.
•

• j

situations

Why stick with the
perhaps
kindergarten

unless the situation real¬

selection

were,

great

average

prevent

might

trouble

cal

time.

one

enough questioning going on
today There is too much uncriti-

individual

than

better

It is easier to estimate

true of life.

what will be

much

this-

than

which

into

Stocks and Security
far

did

Logan Adds

centuated.

Staff

(Special to The Financial Chronicle)

Merely to state these problems
does not suggest a solution. The

and some domestic industries, inPASADENA, Calif.
eluding those making household dilemma is a real one and there Stone has been added
appliances, have found the market is no simple answer to it. What- of J. Logan & Co., 721
something less than satisfactory,.
evei is done is likely to be wrong Stieet.
This, of course, does not add up from one point of view or an-

—

Ralph

to the stall

East Union

to a recession. There remains the other. To state the problem, howElected Director
tremendous stimulus of the capital evei, does indicate the limitations
sen or
Rudolph
H.
Deetjen,
expansion program, especially of of monetary policy in a country
Fmnnilpl -Deet1en
&
higher. But, at the same time, the number of big projects going 'ke ours. One ot these limitations
there are a number of weak snots aheacl of whlch the two largest if that we cannot without great Partn<f
J-0- "westment bank ng 111in,
hi the economy and some other are
he Trans-Canada Pipeline strain and difficulty carry a policy has
elected a d«ectc
»'
industries where demand is not and the St. Lawrence Seaway, of monetary restraint farther than Avco Manufacturing Ccrpoiation

°fgll?™atn'1fln„,

Pressing questions to which we do
noE -yeE appear to have clear an-

Form Edw. Lewis Co.
pension there is the

against it in general, we find it
swers.
In the remainder of this erable momentum of our growth very difficult to do better than our
and it seems
altogether likely that American neighbors in combating
discussion I propose to make a
Eew comments about the near- this momentum is sufficient to lb Thus if the United States were
maintain
active
conditions
at to relax their tight money policy
term outlook and about the difficult problems which it poses in least through this year and per- theie would be strong reasons for
haps longer. But having said this mcvmg in the same direction and
monetary and economic policy.
it

\ythere
tion

year or

this

continent

two''

out of steam?

they

are

vear

It-cL'

There

the

to
so

aeo

are

Questions

questions

not
or

reac-

Is the boom rnnnine

answers"'to^ theVe
should

business

which

id-

TTn

consid-

also

be recognized that
tiend has been clicked
there is a distinct
possi-

and

that

1-r+

"—tU>"
Dilemma

distinct possi- cess
cess

"hid VV1U uecome raore nnxea.
„ntii

a similar rate

the upward

sure

husinps-mpn

should

very

Monetary

in this country.

put it another way
in

111

combating
combatin.

our

sue-

inflation

de-

W1v

vruv

tneii-

hnsiness

Rinstock'
ai^ Morton I. Bi
•
President; Ida Gallup, y J "

dent: and Sol Gallup, S^cie
and lieasurer.
11/1

<r*

Hnon

McCullough Eberhart Op^n
Texas—McCullough-

DALLAS,

?l^JTeasme 011 the
success of the United States. Forof the United

Eberhart

be'dolno 1
clomg a

been formed with offices at 401»
Killion Drive to

success

Policy

^50

^eWni
Tay'

iaiily good job

this

fU
anaEysis as Eblf im~ department. However, if inflation
.^?dlateA^-5ai_se,s^nl °Lthe bur^: were Jo gam serious,^headway in
t

Tnvp?tmpnt
Investment

Corn,
Corp

has

in a se
'Officers
sre

engace

curities

business.

Lawrence

PresiEberhart,

McCullough.

Charles'

problem in

•

Secretary-Treasurer.

rjolums

Number 5064

lu6

(709)

■/. The Commercial and Financial Chronicle

Bond Club of Denver —Rocky Mountain Group 1BA

The Bond Club of Denver and

Out-of-town guesis

Rocky Mountain Group

pf the Investment Bankers Association held their 23rd
'annual

[with

summer

over

frolic and golf tournament Aug. 1 and 2,

attendance.

300 members, and guests in

Winners of the various sports
GOLF—Low net,

events were:

Robert 'Mitton, Robert L. Mitton In¬

vestments, Denver; Robert'Baker, Don A~ • Chapin Co.,
Ft.' Collins; and Robert .'Delaney, Boettcher and Company,
Colorado--.Springs in a, three-way tie. Low gross, Robert
L. Mitton, first; .Robert Baker, second.
Low team net,
William Buxton, Crutteiiden, Podesta & Co., and Robert
Delaney, first; Robert Baker; and John Hagertv, Moun¬
tain State Securities Corporation, tied for second place
with Robert L. 'Mitton,-and 'Jack Fuller, Boettcher and
Company.-

;

PUTTING—John Mackenzie, North
ties Co., San

American Securi¬

F. Humble, First Trust Company, Lincoln, Neb.;
E.
M. "Hunt,
First Trust Company, Lincoln. Neb.; John C. Hecht,
Dempsey-Tegeler & Co., Los Angeles; Marshall Barlow, Robert Scbweser
Co.,
Omaliu; Charles Holder, Wacob-Bendcr Corp., Omaha; Benton

HQRSFSHOES-^Royv-Sajidberg, Boettcher and Com patty; first; Kicholas ^uglip^O^
, Sullivan &-Co.,

-*:

Mo.;

Oscar

Taken at the Bond

■n.:

Bank Slock Prices Analyzed

factors,
Durand
reportsJratq J,of return high -enough to support price above
rrJrbook value prerequisite to appeal as a growth stock.

Dividends, earnings, and book value the primary
National Bureau of Economic Research finds. David

•v

lntensive;statistical 'analysis of
mrices1; through
an
tight-year period indicates ■ that
dividends,
earnings, .and;, book
value are the primary factors de^
termining ipfkre. The location ef

bank;: stock

the bank, also makes

port, discussing broad

New

questions of

the adequacy of bank capita* ana
ihe relationship of the study to

them. According to °r. Saulmei,
the study 'sheds much new 1 g
on a critical economic problem in
significant its analysis of factors

effects

were

inf}ue"c1^

found

Capital Problem, published by the
National Bureau of-Ecbnomic Research.
The

the

City Bankers. The
National Bureau is a private non-

tion of Reserve

"J -taV-; V
profit; organization
study was niad<? as part of gathering economic
~

National

BureauV. Financial

devoted to
facts and in-

scientifically

highlighted by two skits—one portray¬
ing a local municipal bond price meeting, and the other
a typical trader's desk conversation.
Participating in the
municipal bond price meeting skit were Richard Burkhardt and Owen Moore of Boettcher and Company, Fred
Wiesner and Jack Ormsbee of Kirchner, Onnsbee &
Wiesneiy Inc., and

the

skit

trader's telephone conversa¬

showing a typical

tion of local

Orville

speculative securities.

Neely, Merrill■' Lynch,

Pierce, Fenner .&■

of Denver, and RobVice- Presiin charge of the outing. : .
. .
; ,

President of the Bond Club

Beane,
•

Coughlin and ComCruttcnden, Podesta & Co. handled

Bob Gerwin of

pa'ny. Bill Buxton of

ert Kirchner;

dent, were

Kirchner, Ormsbee & Wiesner,

York

Governed Mainly by

^Mutual Funds In

The results of the

towii

to engage

Road

ously with Waddeil &

fices

Colo.—Paynter
with of¬

MORGAN,

Co. has

Kiowa Avenue
securities business.

114 East

to engage

Officers

been formed

are

Richard B. Paynter,

President;
Stanley B. Paynter}
Vice-President; and H. R. Payn¬
ter,

Secretary and Treasurer.

Forms Sees.

Diversified

that

stock

Reed, Inc.

Paynter & Co. Formed
ST.

market.

make

in a secu¬

rities business.
O f i i c.qrs are
Stephen L. Swift, President ancj
Dorothy W. Swift, SecretaryTreasurer.^ Mr. Swift was previa

Equity Capital for Banks
Found Difficult to Measure

Co.

impossible to., measure.
v.
, ,
Probably the most baffling prob-LOUISVILLE, ky. —Mu t u a v
lem of concept and measurement Funds Investment Co. has been
was posed by the growth of
the formed with offices at 1534 Bards-

bank. Dr. Durand expected that
investigation growth would exert a fairly obvi¬
ous
effect on bank; stock prices,
varied greatly among six different
and he made several attempts togroups of banks. Dividends were
.measure that effect. He concludes
cleariy the most important factor
that the effect of growth is so
for a group of 25 large banks out¬
small relative to book value, divi¬
side New York, he shows, and
dends, and earnings that it could
also
for
the
northeastern and
not be measured.
:
~ V.
midwestern
banks studied. But
Lacking positive empirical find-,
prices of New York City bank
concerning the effect .of
stocks were governed mainly by ings
prices—
book value. Further applications growth on bank stock
and hence on the cost of bank
of the techniques Dr. Durand de¬
velops may help security analysts equity capital — Dr. Durand ex¬
amines the growth problem theo¬
to judge whether stocks are overor
under-priced and bank man¬ retically and concludes that a rate
agements to gauge the effect of of return high enough to support
earnings level and dividend policy a stock at something more than
on
their prospects in the capital
book value is almost essential to
:

Duane
Zahner

The party was

Dividends

ether significant the availability of capital to DanKdespite strenu- ing institutions.'
ous search.. These are the major
The study was aided by a grant
findings reported by David Durand
the National Bureau of Ecoin BanJc Stock' Prices and the Bank
nomic Research from the Associa-

difference, but

York Bank Stocks 1 virtually

Governed Mainly by Book Value;
Prices of Bank
Stocks Outside

Club-Rocky Mountain Group Dinner

Prices of New

Factors Affecting

J. A. Hogle & Co.,

Ariz.; Wesley Keating, Small-Milburn Co., Wichita;
Smith, Smnll-M'lburn Co., Wichita;
and Kenneth Smith,
Company, Wichita.
... }
,
,
.

Tucson,

Inc.,

Kansas

City,

Inc., second.

Mackenzie, North Amer¬

Quinn, Quinn

City, Mo.; Kenneth Thompson, Luce, Thompson & Crowe.
City, Mo.; Joseph M. Luby, Commerce Trust Company, Kansas

Kansas

Francisco, first; Myles Tallmadge, second.

Summer Outing

Lee, Dean Witter & Co., Phoenix, Ariz.; John
ican Securities Co., San Francisco; Henry Dahlberg,

attending the outing were:

& Co., Albuquerque, N. Mex.; Charles White,
Sanders Investment Co., Albuquerque; W. Robert Dubois, Stock Growers
National Bank, Cheyenne, Wyo.; E. Ray Allen, E. Ray Allen & Co., Chi¬
cago; Robert Brlnker, John Nuveen & Co.; Miles Pelikan, John Nuveen &
Co., Chicago; Linus P. Greene, A. C. Allyn & Co., Chicago; Edde K. Hays,
Central Republic Company, Chicagor Matthew J. Hlckey III, Hickey fic
Co., Chicago; D. A. Heeler, Lord, Abbott <fc Co., Chicago; J. G. Parker,
Lord, Abbott ifc Co.,' Chicago; Roy W. Michel, Salomon Brothers <te
Hutzler, Chicago; Lawrence W. Morgan, . The. Parker Corporation, Chi¬
cago; William J. Roberts, Glore, Forgan & Co., Chicago; Floyd Sanders,
White, Weld & Co., Chicago; Robert J. Taaffe, Blyth & Co... Inc.,
Chicago; George B. Wendt, First National Bank, Chicago; Harry J.
Wilson, Harry J. Wilson & Co.. Chicago; Robert Delaney, Boettcher and
Company, Colorado Springs; Thomas Moon, First National Bank. Colo¬
rado Springs; James F.
Jacques, First Southwest Company, Dallas;
Robert Temple. Keith Reid & Co., Dallas; M. W. Lambert, Harry "W.
Peters Co.. Grand Junction, Colo.; Harry W. Peters, Harry W. Peters
Co., Grand Junction, Colo.; John J. Bondanlc, Zahner and Cqnxpany,
Kansas City, Mo.; K.
Stephen Brown, .Barret, Fitch, North & Co.,
Kansas City, Mo.; Joseph M. Crowe, Luce, Thompson & Crowe, Inc.,
Arthur

(Special to The Financial

attractive as a

Chronicle)

Minn.—Gerald
under the di- '
t
1V£. Fine is engaging in a securities
Dr. Durand was a member of
rection
of
R.
J. v Saulnier."Dr. the public inte
.
business from offices in the Na¬
The plan behind this work was
-Saulneir,, now op. leave from the
Dr. Durand explored h
the
National Bureau's research tional Building under the fitm
to investigate the cost of equity
National Bureau and Barnard Col- ern statistical techniques
espeof Securities. Diversified.
staff at the time of the study, and name
capital for banks. The investiga¬
loge, Columbia "University, to serve
Mr._ Fine in the past .was with
cially muitiple regression—could
is now on the faculty of the Massa¬
tion showed that this concept is
Reynolds •& Co, >
*
-, -•
> , [
«-ow Ught on'bank capital probchusetts Institute of Technology.not only difficult to define, but
the
.

Research Program

them

tinir

Cost of

growth stock.

MINNEAPOLIS,

Introduction vto Dtirand,svre-

lems.

The Commercial and

(710)

Continued

jrom jirst

only come

j 'As We See It
the emergence

been

ever

of the New Deal, notions of this sort had
widely and so intensely held.

The fact is, of course,
that it is

that the growth of the doctrine

function of government to

Continued

spigot on and off is in any event fallacious, but even if
could, the question would remain as to whether it
should do anything of the sort. And that goes as well for
government. It is really disheartening to find so many
who should know better advocating this, that, or the other

public action to stimulate lagging industries.

by government or

Certain

dangerous misconceptions, and a hazardous
recognize certain simple facts underlie all this
of nonsense, and so long as these defects in popular

failure to
sort

thinking exist,

less certain to have to con¬
cajole central bank authorities and

we are more or

tend with efforts to

governmental agencies to take steps which can in the end
only do harm to the economic system. One of the most
pervasive of these false notions is that businessmen need
to have "incentives" supplied by governmental action. The
fact of the matter is that when that time comes,

if it

ever

does, when the American businessman is not willing and
grasp any and every opportunity
dollar by producing something that

ready to
honest

want and

a full
partner in the
organization
of
the
industrial
corporation,

to earn an
the people

willing to pay him a profit to produce—if
day ever comes the end of this country as a potent
economic force in the world and of the American plane

modern

this

With

living

definite

responsibilities

able

those

as we

and

purchasing.

money are

facilitate

to be regarded merely

operations which have

origin and their incentives elsewhere. If they are
as anything else, they may or may not
induce temporary activity here and there, but they can
be counted upon to bring serious trouble in the end.
Neither a bank nor the government does a businessman
a
good turn by dangling funds before him and thus per¬
suading him to undertake ventures or to carry on activi¬
ties that his own better judgment does not
suggest to him.
It certainly does not well serve a consumer
by supplying

viewed and used

with

funds

loan

which

afford

not

can

If evidence were required in
support of such obvious
truths, the present state of agriculture in this country
should provide it. Farmers have for years been induced
to produce what was not wanted
by anyone at prices
cover

cost of

production and leave

any

profit at all

for the producer. The result has not been
any real enrich¬
ment of the farmer. Unduly
easy and loose credit is in
this case only one of the numerous

that the politi¬

ways

cians have devised

technological

tion

Industrial

come

the

aid of

the

embattled

its

must

;

ready enough to demand action

of private business
on

the part of the

Federal Reserve for their special benefit. For the banks
to
supply funds which should come only from the savings
of the

people is but another way of providing "purchasing power" without the production of goods or services
which

these

Scarce

additional

costly

money

dollars

are

normally is

certain

details

the

Moreover

sales

management

and

demand.

indication of

over¬

unfulfilled

prob-

William

sir

might

have

been

entirely correct in this gloomy preMiction, but fortunately a process
£0 £jx £jie jnexilallstible supplies
c£

convinced that the extent
to which a company solves this in-

veloped

atmospheric

the

turn

tegration problem, oth.er fthipgs
being equal, will be a determining
factor in the success or failure of

nitrogen

Germany

de-

was

just

about

century.. This

resulted in the production
0f
calcium- cyanamide,
a
conp0und rich in nitrogen, and Amerits research effort, and perhaps its jcan • Cyanamid
Company
was
corporate future as vyell.... Asr a i0Unded in 1907 to put it to work.
process

msiiBgement §roup, you^will iec- ^^plant built in Ni3§3r£i FrIIs
ognize that this pioblcm is loy no Ontario, in order to tap inexpenmeans limited to industrial le- sjve power supplies, was the first
search, but a
commo^ objective bn the Korth
Continent
remains—a balanced and informed to. make;,
synthetic, nitrogen ferearn e or .
tilizers available to farmers*-;and
Qr„.anizational
Balance Essential the founders had every reason to
W5«wdjiondi oaiante ^senuai
fnrwarr]
+n
hnVht fntnrp

This organizational .balance - is 1°
fu
°
bright dutuie.
pBt«ntini in "+Vip rWailnVi Yet less than ten years later a
eoualiy essential in me detailed
rPrman
Frit?
planning and scheduling of work famous .German
scientist Fntz
within a resarch laboratory: itself. Haber, developed ? a curect cataResearch
management must > be
Process combining nitrogen
sure that its collective .efforts ;are from the air, and hydrogen from
,

its

production
what is

know

must

being developed in the laboratory
they can predict production

posts

sales

anH

always
strange

nntentials

struck
that

while

: a

has

rather

company

think of authorizing
the manufacture of products wi in
never

idea

sold

of whether they
not, it is not at ail

for

mon

research

can

uncom-

to expect its

company

organization

develop

new

products

out

having
first
determined
they are worth promot-

with-

processes

whether

ing.
This

basic
it

vet

course

corporate
is

nrohlein

communication,

sururisina

that

onlv

Per-

the

partial

lack

A research

Without such

for this

reason

common

man

items

earnings

balanced

him.

company's

statement.

And

sheet

was

successful, and in spite of greatly

cor-

P10blem of proper balance

old

timer

department

sales

could

have litle interest in

new

ethane,

lor

example, would dislaymen, even though
they would recognize it

insecticide^

Problems of this sort
cnliccnd

in lp-

toese

for sulpha drugs,
chemicals, insecticides, and

intermediates
paper

synthetic fibers.
stance

when

blessing

near

This is one ink¬
disaster was a

disguise

fields

has

because

the

to explore new

ultimately

are

freely

nan

resulted

A,"
Defensive

»'

insurance

policy".-While

glamorous 1nbf

y 11

becomes

The

incentive

opei

moie

ating

laboratories

industiial
continue

company.

ra(jio

back

the

balance

■

espe-

sive'yor loBng.range
sive

research," This

luim-raiiiic

largeiv

ignores

rescaitj

the1

day -to-day

imP'-°vement and OTr-cent!'at?s a
exaniiilevHnefforts on new product's designed

three

for

fnvo

101 examP^e' b"f" be-

tirely adequate for 1950
not

cars could
competitivelvi todav
J
J

sold

cannot be concerned

products

o n e.

detail

the

existing ones or

reolace

because

reasons

re-

much

why

with

....

explains "One
we

emphasis

program
Sir William

entirely

fields.:^This type of research
°rd?ruto be successful .

bPth highly trained teams ,^Q+1P1"1c€
oi crea
a lot of patience
Manufacturing on tho part of its corporate hacK-

and

--r.

the

But

proper

identical.

process

problem of
research programs—the second important area
<t^e\ of industrial laboratory responsii ht be definei as often

a torn-

K®e P1

Joneses"

to product

obsolescence again,

mighf also be

■'

petitive, and it is somewhat re- processes, too, must also-be
kept
frpsbin^- to nhsprvp that whilp all
freshing to observe that while all up to date to remain
competitive,
of us recognize the necessity of
My own company learned- this
doing something about it, no two lesson very early in its career
and
proposed
solutions
are
in
any I am citing this incident in some

or short range
sear?b .might be defined as the vulnerable

Prot^ct or lmpiove

complacency in

v,ug the dangers of

highly competitive industry and
don't imagine that we will
re- permit
ourselves to become so

continuing effort required to im?!™v+e prfsfnt Product lines in or-

rimnnn

something, however, is evident

+0110111

olcn

^hnological frontier. A few ;defrexamPles; might illus-

immedl 0° ge
3 C°mm°nly

Idiscussed among companies that in
all other respects are highly com-

costs

Among

are

1°^ T cai}:Pttsh^ouf ent products. It has also taught

prod—

courage most

market.

products

Melamine, for a
growing list of plastics and resins,
new

research eUo* /***■to what is now a widely diversified
" A 0 have an lmportant bearing company selling over 6,000 ditferllOW tar out.
!niich.miv

uct, described in chemical shorthand.
A word like 1. 1. 1-trichloro-2, 2-bis (p-chlorophenyl)

and

fertilizer

AP e^eptive solution ...to this impelling necessity

often

uncomprehensible

Conversely,

the

expanded capacity, the great majority of our cyanamide production
i.ow goes into a wide variety of
useful and profitable chemical
compounds entirely outside of the

was

language

not expected

was

balance

completely

sense

perspec-

concern

tive> or with undue concentration
an defensive or "crash" programs
ioi instance, the lesearch effort
would piobably not produce the
background technology; required
^ develop leally important' new
pioducts or processes for the fue* 0n the other hand,' einphaS1^ PP v^iy long range .research
P?lght very possibly lead. jo.{SqIuimportant problems after
our companies had gone out of exance* j
'
'

011

haps

technical diversification .which company, wyas . eventually faced
might, prevent any single project .with the alternative
abandonfrom being thoroughly evaluated in§ its investment dv Linoing new
and solved in a reasonable period uses for its pioduct.
of time. A proper balance among n
■
-rcolong range or basic research,:;of?, Quest for New:..L>e> successful
fensive research and defensive reOver the years continuing research is, therefore, ess dnti a 1. search for new uses has been quite
®

years^hasany cSted l"Stfial

effort been made to solve it.

used' insecticide
used

a little strange to us that so
would be the first to condemn government

interjecting itself into the affairs

all

know

company's future plans and be in
a position to evaluate at an early
stage the technological feasibility
of any proposed project

porate

always seemed

This

objeci

cycle let it start by scrupulous avoidance of action likely
to create conditions which must almost of
necessity de¬
teriorate into depressions at one time or another. One of
the types of action to be avoided for this reason is
pre¬
cisely the use of easy credit and related tactics to induce
developments which can not survive the necessity of exist¬
ing without such special treatment. Inflations have reg¬
ularly had the effect, among others, of bringing into
being enlargements of industries or even new industries

are

a
a

learned very little about these im-

footing that could not support them.

mankind.

lem ... is vital to the progress of
civilized humanity, and unless we
can class it among certainties to
come, the great Caucasian race
will cease to be foremost in the
world."

fectively

portant

for

come
^lLl^

himself about production costs and sales volume, so he

Action to be Avoided

who

great discoveries awaiting the in¬
genuity of chemists. It is certainly
deeply important in its practical
bearings on the future welfare and
happiness of the civilized races of

distributed over a sufficiently coke oven gases .-to■ produce ambroad area so as to cotfer ade- moma. On a unit nitrogen basis
garret, for in order to accomplish quately the technical requirements
lone

If government wishes to do all that it can be
expected
to do to iron out the extremes of the
so-called business

It has

has

1Iclo

in¬

many

from the atmosphere of
inventor working in a

way

community.

research
lcocclltu

muuaiuai

ness

it develops.

A Long Road

recent

many

dinmumuuii iiteueu
and meet competi-

when

and

needed

ammunition

lecimoio^iccu
anticipate

farmer, but it is an important element in this unfortunate
situation, and in light of the results, it is not easy to under¬
stand how anyone can
suppose that essentially the same
type of program could do better elsewhere in the busi¬

longer

important may develop
some
day in the distant future,
Research program must now be
planned
carefully
far
enough
ahead to be able to supply management
continually
with
the

would

borrow.

and

ing

the

their

which

compar-

traditional

the

supported with the vo^iie snd.
pious hope that something excit-

long

have known it will be at hand.

instrumentalities

him

functions of manufacturing, sales,

are

Banking, credit and
as

have come

stature

new

tjr

atmospheric ni¬
is one of tiie

therefore,

productivity.
I

1898

essent ai

well

"The fixation of

spiral. Up to 70% of a typical fesearch budget is required to cover
direct salaries and wages of its
personnel, and we are thus especially vulnerable to inflationary
influences.
Our only, solution,
common to many other segments
of the company concerned, it has of American industry, ,is. tp -uj;emerged into a new relationship tempt to improve our eificidndy'
which permits and requires it to and more important, perhaps oui
as

impor¬
in

dustries he said in part,.

physical growth of industrial research is perhaps less important
than its growth in responsibility
and prestige. Once a rather mysterious activity carried out in a
semi-academic
atmosphere
isolated from the routine operations

that

agriculture

jrom page 12

integrated

London

compounds

trogen

Research Is Big Business

function

Hazardous Failure

made

Commenting on the dwindling re¬
serves
of naturally
occurring ni¬

keep business going

top speed has tended to put a kind of pseudo-logical
foundation under this attitude toward Federal Reserve

Scientist

trogen,

policy. Plainly the idea that the Federal Reserve can con¬
trol the rate of activity in business by turning the credit

Thursday, August 15, 1957

address

tant

by central banks is dangerous.
We are badly in need of a vigorous revival of real
Americanism in this country.
;r.v*v.

great depression of the 'Thirties or perhaps until

British

cheap money should
when business is too dull to make use of it.

extension, and unduly abundant or

page

Interference with these natural forces

until the

Financial Chronicle

have

on. a

over

broad

many

Crookes,

placed
re-

years

art eminent

jj.:

'•

•

—

tivre scientists and
ers»

there

many

are

nVi^ncff

pitiaii^

quickly change a most
promising laboratory discovery
a commercial failure, and only
very few long-range projects surwhich

can

vive to maturity.
success,

The -rewards

come

t°

however, are enorhious.

From this class of

most of the

velopments

research havf

unexpected de

which

have

created

Number 5664

186

Volume

The Commercial and Financial Chronicle

. .

industries and which

entirely new

made America the strongest
nation in the world. The elec¬
tronics. industry," for e x a m p 1 e,
horn during World War II, has
have

rupted

and

gained

have

never

re¬

our pre-war momentum.

industrial research is to keep pace
with the future needs of society.
And

.Industry's

Dependence

industry

broadens

its

Bank and Insurance Stocks

support of basic research, it is of

Knowledge

(711)

paramount

importance

that

Industry is now beginning to avoid the risk of limiting the free¬
done much to improve
productivity and efficiency of recognize its dependence on basic dom essential to the academic sci¬
knowledge, and in its own sell- entist. There is a grave danger
both industry and agriculture. It
interest has begun to spend more that financial support tied
specif¬
is one of our principal hopes of
of its research time and
money on ically to industry's own immediate
solving" the dilemma of a rapidly
programs
entirely
unrelated
to self-interest, will reduce the na¬
increasing -populatio n, fewer
tion's basic research effort to even
practical problems.
citizens of working age, and less
A few of our larger companies more dangerous levels.
Growing
land from, which to feed them.
have set up " separate basic re¬ financial support from
industry,
The synthetic fiber and synthetic
already

By ARTHUR B. WALLACE

the

industries produce supe¬
products from readily avail¬
chemical intermediates and
thus
relieve us
from
periodic
shortages and dependence on the
rubber
rior

able

vagaries of price and quality of
natural products. The pharmaceu¬
tical industry has already reduced
mortality

the

raised

has

many

acceptable levels and
life expectancy to a

diseases

rate

point where a healthy male of 65
can
now
look
forward
to
14

departments

of their

restrictions On

free

scien¬

creative

tific minds with

staffed

self-serving

perhaps

can

balance in

answer. .Basic

best

research

flourishes

purely academic envi¬
ronment,' an atmosphere and state
a

mind

duce in
Our

most

for

hope

greatest

of basic

ture

difficult to

repro¬

research still

universities

tne fu¬
lies in

other

and

inde¬

some

of the

survey

should

turn

increasing

ever

result

flow

gifts is heartening.

and

restricted

But

it must continue to expand, if

ment

is
it

will

fulfilled,
the

be,

American

And

us.

Twentieth

Past railroad investment

There is little

question that

industrial

present

when

mentum,

research

added

our
mo¬

known

manage¬

.hese

results justified the costs according

which goes on to
plan calling for capital
$10 billion.

expenditures of well
-In 17. S; A Tomorrow,

recently

published

Republic Steel Cor¬

which provides an in¬
sight 'into the promise
of the
poration,

several

future

areas,

over

perishables, and im¬
provements in over-all electronic
control which bring "pushbutton
preserving

railroading"

en¬

one

step nearer.

Passenger Trade

yet undeveloped

for

balanced research
organization—basic research.
in

Basic

simply

research

fundamental

expression

of man's

intellectual curiosity—a desire to
create

knowledge''.without

new

re¬

gard to practical applications. The
reservoir

vast

this

knowledge about

our

kind

world

and

its natural laws, accumulated over
the

centuries, has been the foun-

tainhead

research.

There

applied or industrial
is great risk that
emphasis on applied research

our

has

depleted, this

knowledge to

source

of new

dangerous level.

Historically, these basic studies

have

been

academic
of

concentrated

institutions,

and

our

many

most

important industrial
developments can be traced back
to

our

unrelated experi¬
conducted
in
university

seemingly

ments

laboratories and
scientific

bomb,

reported

literature.

The

the

atomic

for example,

could never
have been developed without the
help of isolated bits of knowledge
reported many years ago by aca¬
demic scholars from all over the
world.

The

firms and

individuals.

convenient pas¬
"Still further in the future is
senger cars," improved track and
the possibility of developing high¬
control
systems,
and diesels to
speed shuttle trains for commuter
replace the steam locomotives.
service.
Whether
monorail
or
"The results justified the cost. conventional,
diesel or electric,
Although passenger miles showed such trains, automatically con¬
a
drop from 66.2 billion to 28.7 trolled, may be the not-too-dis¬
billion
miles, freight ton-miles tant solution to the commuting
increased from 602 billion to 631 problems of tomorrow's Suburbia.
billion during the ten-year period. Such trains may reverse the down¬
weight' and more

passenger
traffic and
7; "The risq in population and in
general business, coupled with a ultimately relieve urban traffic
congestion."
ten-year plan calling for capital
expenditures of well over $10
billion is expected to raise freight
Customers' Brokers to
ton-miles tp 880 billion, and per¬
Hold Election & Dinner
haps to reverse the downtrend in
passenger service, ending with an
The Association of Customers'
estimated
30
billion
passenger Brokers will hold their annual

trend

miles

by the end of 1965.
.

New

Stock

"Dicselization
tion

railroads

and

electrifica¬
saving some

dinner and election of
Wh yt

e's

Sept.

12.

will

officers at

Restaurant,
Thursday,
The business meeting
held at 4:30 p.m., with

dinner at 6.
$300 million a year in fuel costs
Tariff of $10 includes dinner, one
and $400 million in repair bills.
cocktail and all gratuities. Reser¬
According to a recent study some
vations should be made with Sam
2,000 new diesel locomotives and
Minsky, Hardy & Co.
80,000 new freight cars will be
installed each year through 1965.
Terminals will be improved and
John K. Mills
cocktails at 5:30, and

miracle of
expanded,
and the number of
broad spectrum antibiotic drugs
John K. Mills passed away at
automaticy yards—which combine
would also probably never have
the age of 77 following a brief ill¬
radar with
computer control to
happened, except for the almost handle marshaling operations— ness. Mr. Mills was one of the
casual
observation
founders of the New York Curb
by a British
will be greatly increased.
professor
that
a
mold
isolated
"Terminal layover time will be (now American Stock) Exchange,
from
bread
inhibited
bacterial ^
and had been in the investment
shorter and road speeds will be
growth on an agar plate. This man
business in New York City since
greater. Rails will be longer, re¬
was interested:only in extending,
1901.
ducing the number of joints, and
his knowledge of mycology, not
will be made of stronger, tougher
in solving medical problems.
1 ! steels. .Maintenance will be fur¬ Hodnett & Woodson Open
present

Our universities in this country
have in the past done their share

ther: mechanized,
and electronic
communications devices will per¬
continually replenish this res¬ mit faster schedules with fewer
ervoir
of basic
knowledge, but. interruptions, lower cost and a
during World War II, in marshall¬ maximum of safety.
ing all our resources, many of our
"Other 'technological
changes
top flight professors were enlisted ' are in the works throughout the

in
and

the

defense

their

country

assigned, practical problems of

immediate interest to

forces.

Thus,

restricted

the

our

pattern

research

military

was

un¬
inter¬

but

satisfactory,

mostly specialty

are

carriers

that confine their operations to a

an!? Vl

aie
1V»

profltable hl)f
among the

A-

sense

hnA

v-\ n t-M Ar.

«n

test

lies

havior

longer-term
the

gain in equity

systems—computers for cost ac¬
counting and automatic billing;

switching
and
spotting cars;
robot train
watchers; radioactive boxcars for

television

control

for

MARTINSVILLE,

Va.—Hodnett

Woodson, Inc. has been formed
with offices at 25 Broad Street to

engage

securities

business.

Roy
K.
Hodnett,
President; Fred V. Woodson, Jr.,
Vice-President;
and
Ralph
E.
Officers

are

Secretary and Treas¬
Westervelt
and
Mr.
Woodson were previously associ¬
ated with Rives S. Brown.

Westervelt,
urer.

Mr.

be-

shareholder's

stock investor who favors

equity growth, the guide posts are
Clear. Anci it may be pointed out
in

aimost

every

case

where

excels as an underwriter, its investment results are
a

company

also good

sequent of good

management, of course.
°
Reference has been made to the
reports
for

the

beginning to appear

now

first

1957

half.

For

the

number of multiple-line
writers
these,
as
years sufficient to cover at least they
relate to statutory undertwo
cycles in the underwriting writing results, are generally very
over

portion of the insurance business,

bad.

improvement

this effort to bring out differfrom company to company

there

Unless

decided

the second six
1957 may well turn out

ences

months,
to
be a worse year than
1956.
liquidating val- Investment operations are reasonues
for the period Dec. 31, 1946 ably good, but statutory underto
Dec.
31, 1956.
Adjustments writing results will constitute a
have been made for stock divi- heavy offset. There appears to be
dends and splits; and it is assumed plenty of time to buy insurance
that where rights to purchase ad- stocks.

have first determined the dol-

lar differences in

partner

news

£ list aie selling. A scatfew
are

teied

will

industry

discover¬ couraging prospect is depicted for
"Bidding
for
the
passenger
the railroad industry in the next
existing laboratories, can
trade will be lighter, low-center
justify such optimistic projections ten years.
trains for high-speed runs; highon
a
The book points out that "in the
short-range basis. However,
level trains for long-haul jour¬
1955, the rail¬
many scientists are strangely con¬ decade ending in
neys; improved arrangements for
servative about guessing too far roads invested $11 billion in capi¬
reservations and ticketing and the
into the future. They are troubled, tal
improvements.
With their increased use of railway credit
I
believe, with doubts as to the money, they bought better rolling
cards, similar to air travel cards,
vitality
of
the
third
essential stock for freight hauling, lighter
but

ies

equity.
Many investors are more concerned with equity appreciation in

surance

recently completed Republic Steel study

depict 1965 expectations of ten-year

new

plateau," the statement said, "but
is ascending heights whose upper
level is not yet measurable and at
an accelerated rate of speed."

Zblue ships m the

One

Cen¬

all

far

that
as

Bright Rail Prospects Forecast

not

are

OVn'A

climbed

large multiple-line companies.

tury Fund, "The United States has
merely

there

stocks

rpi

cii

a generally fa¬
political and
economic
climate, to share the enthusiasm
for
our
future
experienced just

bv the

insurance stocks than they are
with dividend income. Of course,
is
so
unfavorable, to do some we a11 are aware that. tbe }nco™.e
shifting of funds from the sec- tax laws are responsible for this
ondaries to the better grades?
anomaly.
Now, there are pronounced dif? half-yeaily reports that are ferences between companies in
J! lssued lower full Justili- this comparison, and for the irigive prices at
cation
for
the

assuming

week

industries

judicious, while the industry

new

vorable

last

date. This gives the proportionate gain in equity and the
price performance as it relates to

same

Why, therefore, would it not be

products. There is, therefore, good
reason,

insurance

concerned.

are

large
and
essential
share of the responsibility.

deserve

at the start of the period, and also
to the price (adjusted) at the

investors

some

quality of management and growth

today lies the promise
beyond the imagina¬

most

all

gradations

future

tion

doubt

portfolios

carry

These dollar differences are then
related to the liquidating values

most

stocks, for the industry is unquestionably a growth one. However,

that behind the research frontiers

believe

this in

and

can

ditional shares have been offered,
the privilege has been exercised,

stand

that

Stocks

Insurance

insurance

believe

"growth"

identify

bearish

fire-casualty

should

—

months this space has

somewhat

the

stocks.

the

about

some

taken
on

specific challenges re¬

There

agement.

standing 'scholars
and
research
laboratories through grants-in-aid

emphasis on long-range research,

For

presents to business man¬

promise

dustrial

es¬

research.

endeavored

also

persuade more and more in¬
groups
to place greater

•will

industrial

have

dustry's increasing support of out¬

many

research effort

enthusiastic

others,

stories, plus

success

that these

help

our

future

industrial complex.

that

doubt

restrictions,
to restore the

the areas of science they may ex¬ sential to continuing technological
plore. This will help, but we rec¬ progress.
From what I've said it is obvious
ognize
that
it
isn't
the
final

pendent research institutions—and
there are encouraging signs,
in¬

is little

There

few

the

productive life.

further years of

Week

This

Gain to Stockholders
Increase in Liquidating

Ratio of Incr'se to 13/31/46:

Value 13/31 / 46-13/31 /56

Fire

Aetna

_____

___

55%

Price

70%

26.56

110

16.45

206

Shippers

36.52

220

Agricultural

American Ins.
Bankers &

Liq. Value

$38.01

25.64

Ins.

Continental

113

49.66

Boston Ins.

185

242

Federal Ins.

21.39

123

166

Fidelity Phenix

60.93

218

292

Fire Ass'n

33.01

113

Fireman's Fund

34.91

104

124

Firemen's Ins.

44.51

204

363

Glens Falls

24.78

108

40.22

143

241

31.98

117

83.05

126

170

Great

___

American

Hanover Ins.

Hartford Fire

_____

Home Ins.

36.77

160

Ins. Co. No. Amer

69.35

220

250

59.31

116

29.85

37.19

Northern Ins.

92.82

273

403

North River

28.39

136

Fire

61.33

185

336

65.98

National Fire
National Union

__.

Hampshire

New

Pacific

Phoenix Ins.
Prov.

Washington

_____

129

—12.57

136

159

19.15

39.31

United States Fire__.

18.68

139

Westchester

23.28

143

98.30

159

204

St. Paul Fire

__.

Security Ins.

Springfield

25.53

Aetna Casualty

__.

20.78

Amer. Re Insur.

Continental Cas.

40.75

259
90

145

7.32

49.00

132

194

47.48

Seaboard Sur.
Includes

143

336

56.50

....

Fidelity & Deposit.
Mass. Bonding

97
31

166

162

Amer. Surety

U. S. Fid. &

Gty

American

Automobile

Insurance.

tility Srites

Manhattan,

this

such ak Fifth Avenue

exceptions

been

Coach, ; has

sick

for

many

years—with a temporary respite
during World War II
and the

sioner

analysts

shy:, away
highly speculative. Yields
to 13% are available and

stocks
of

ratios

price-earnings

gen-

are

the low side as comother utility stocks.
,The" industry's troubles are well
known
constantly rising wage
erally

011

pared

with
—

Urates, resistance to increased fares
by

passengers using other forms
transportation, and slow progress in gaining relief from traffic
jams and heavy local taxation.
Basically, the problem is the same
as
that encountered by the railroads—the rapid increase in the

automobiles.

use

result of sharp fluctua-

As the
tions

resulting

earnings

from

Iags in obtaining higher fares to
offset increased wage rates, occasional

strikes,

most companies in the industry have either
been reorganized over the years
with little or no funded debt, or
have
reduced
debt by
sinking
funds and voluntary bond retire^
balance

etc.,

strengthening

thus

ments,

sheet

their

positions to absorb

irregularities

earnings.

Fifth Avenue Coach Lines,

Inc.,
formerly New York City Omnibus
Corp.,
recently
celebrated
the
fiftieth anniversary of motorized
transit

bus

New

has made

company

generally

and.

the

against
of the

The

York.

determined

difficulties
With the help of

rate increases it about doubled its

revenues

and

now

the

period,

postwar

doubling them

again

through
acquisition of
Surface
Transit, Inc., the old Third Ave¬
nue
System which came out of

this year. The
combined company will have an¬

bankruptcy early
nual

revenues

about

mil¬

$66

lion.
In

April this

the company
announced that it was also negotiat'ng with the New York City
Transit Authority to acquire live
City-operated bus routes in Manhattan.

year

Yorkers

New

had

finally

and : Sun"-.remarked

re-

were

cently surprised to learn that the

and the TA still has

obli-

gat-ion to (do so)."
Fifth
Avenue
Coach

when

payments

dends

earned

could.

omitted

were

Divi-

entirely

been paid.
Acquisition

Surface

Transit

is expected eventually to result in
substantial operating economies
and tax benefits, but for the time
being these are apparently being
offset by accounting changes and
extra maintenance costs

^resulting

from Fifth Avenue's higher
laily

tiue

the

oper-

was particuquarter

fust

when
expenses
were
increased
$226,000 by the conservative policy of accruing vacation wages
the

over

whole

instead

year

charging them during the vacation
period.
work

Some

is being

Avenue

maintenance

extra

done

buses.

the Third

Moreover,

the
in the first four months

company

restricted

was

by the Courts in
making changes in operations of
Third Avenue, which would have
resulted in economies.
In the first

six

months

in-

net

for the combined companies

come

$1,326,6*30, equivalent to $1.50

was

(882,575) resulting from the ac¬
quisition of Third Avenue Transit.
This figure compares with
$1,131,-

pro forma basis and therefore

comparable.

operating

crease

revenues and

operating

local 'taxes.

before
eral

Thus

interest

income

$1,035,000
It

least

for

May,

President

expected

last

education reaches

(last

Society

in current assets

cash

and

the

t 1

O
I

Mc-

earned

company

expected

told

the

was

current

■

liabilities.

However,

the

Iatter Inc)uded some
such
and

special items
reorganization allowances

acrriied

lnn{?

vneatinn

TnH!

riphtin-»lnrfj?

tpr

qoo ftnn

previous month with seasonal factors taken into account,
noted the gain was considerably smaller than the

agency

monthly average increase

rable goods went down

$8,177,000

restricted

reported as investment

capital

stock of Surface Transit in
of

the

latter's

excess

underlying

book

value.

sales

declined

total drop of $200,000,000 to $28,400,Wholesale shies also slipped a bit but

retail volume

increased, according to the report.

In the automotive industry, production
which netted the
4,000,000th unit since Jan. 1 last week, shows no softening signs
despite the approaching end of the 1957 model year assembly,
"Ward's Automotive Reports" stated on Friday last.
v
Scheduled for the past week in United States plant's, were
.

marking

1.3% .rise from the preceding
a robust volume of 500.00(1
completions for the entire month of August.
'
.120,908

passenger

week's

119,323 and pointing towards

cars,

Matched with

dealer sales

the

booming production promises
September

unusual bargains for new car buyers in August,

some

and October,
Dealer

"Ward's" states.

new

car

inventories increased by

25,000 units during

July, to

a 43 day supply, putting the Aug. 1 count nearly 100,000
units above the year ago level. Apparently the auto makers feel

that the retail
some

are

demand "is there," the statistical agency said and
showing unusual sales successes thus far.

Chrysler Corp. dealer new car sales jumped to 22.5%; of the
industry's total in July from 19.2% in June as. their customer
deliveries topped
the 100,000-unit mark ,.for the fifth straight
month.

businsss

general

scheduled

five-day

optimism, the Big Three auto
last

operations

week;

the

reporting

tnat a return to normal assembly at Mercury's W^me,
Mich, and Los Angeles plants, plus a rise in Buick-Pontiac-Oldsmobile programs, offset a week-long suspension in Detroit opera¬
agency sain

*■

■

Meanwhile*,

American Motors manufacturing remained idle
due to the annual vacation and model changeover, reasons which
;

will idle Studebaker-Paekard Corp.

the end of this week.
production in the United States dipped to 13,722 the
past week from 20,833 in the previous week due to an easing in
output rates by Ford and International Harvester. Willys, mean¬
Truck

while, marked off the second week of its three-week closedown.

The

stock

around

10.2%

total

Sdt.plus , representing the amount

recently
to yield

24V2
if the

50c

could

ings

estimated

sold

8.2%

Lumber shipments of 490 reporting mills ran 10.4% above pro¬

year-end

counted

extra

duction for the week ended Aug. 3,

With

earn¬

facturers Association reports.

on.

around

the

Output for the week

was

the National Lumber Manu¬
above the week prior, while

0.5%

price-earnings ratio approximates

shipments stood 11.4% above the July 27 week.

eight

with

the latest week

nor-

week before.

times—about

line

stocks of bus companies with

mal payout ratios such

as Cincin-

meeting
use

Ark. Sees. Formed

extra

i-tot*

vears

qprtmpc

a,.ir

tm-.,-.

vV23^^
.9. ' ^
7.
Aikansas Securities Corporation
!ls
formed with offices at
Cential Avenue to engage m
a

„

a secunties-business. Officers are
Keith, President; Archi-

kmd E. Crow, Vice-President; and
Nathan L. Schoenfeld, Secretary,

that
buses

Form Davis & Humphreys
parts

wiRi

Tpy

nimnip
r

r/ ?nd Wllham J- Humphreys

tw;0

Davis
have

color

were

New orders for

7.4% of production, compared with

5.2% the

Compared with the corresponding week in 1956, pro¬

duction for the Aug. 3 week was down

but shipments were

9.4%

New orders trailed the year-ago mark by

11.1%.

The association also reported that national

production of lum¬
17,073,000,000 board feet, a
drop of 9% from the similar period last year. June output of
2,934,000,000 board feet trailed the 1956 month's total by H%But, the association said, unfilled orders at the end of June were
the first half

1957

totaled

6% greater than on June 30, 1956.

During June consumer installment credit outstanding rose
$433,000,000 to about $32,344,000,000; the increase during June 1950
was

of June

year

below

Much

of the

Fifth

Avenue hopes to
benefit from the increased parkdifficulties
encountered
by

ing

passenger cars, it is also
suffering to some extent from the
experiments designed to increase
the flow of traffic. Last
year the

(Special to The Financial Chronicle!

DENVER, Colo.

—

John L. Tal-

bott lias joined the staff of
Boettcher and Company, 828 Seventeenth Street, members of the
New
was

York

Stock

Exchange.
He
G. R. Harris

formerly with

Investments.

sales

At $28,500,000,000 in June,

1% below those of May, but exceeded those
ago by 4%. Manufacturers' new orders were some¬

by manufacturers
what

auto¬

The most noticeable increases occurred in

$321,000,000.

mobile paper and personal loans.
were

those

decline

ment.

both

the

preceding month and June 19oo.
transportation equip-

occurred in orders for

'.
heavy civil engineering construction contracts tei
week, and were 4% less than a year ago, according
,

Awards for
almost 26% last
to the

"Engineering News Record." The most noticeable declin
building and private mass housing, offsettii

occurred in industrial

increases in

6th

Joins Boettcher Co.

air-conditioning.

for

000,000 during the month.

tions of De Soto.

item,

changes,

$56,600,000,000 in June, off $200,*000,000 from May, the depart¬
added.
Manufacturing sales for both durable and non-du¬

stock

equity was carried at nearly
$20 million, but this, included an

and somewhat below the

year

ment

Reflecting

ments, and is experimenting with
While

of last

monthly boosts earlier this year.
After adjustment for seasonal

makers

paid).

priyate

the

stock), $3 million first
mortgage 6%
bonds
which
are
being
amortized, and $1,327,000
equipment obligations. Common

Transit

Manhattan to increase sharply

its
buses
with
new
schemes and new seating

r.:-tn
!

securities')

SHIray^,h^iir,offices at

'AMERICAN CANCER SOCIETY
!

(principal!v

Government

from the

mil-

compared with about $8.9 million

year

results

year-end

extra

write

local Post Office.

<Rin

Manufacturing and trade sales for the month of June (on a
seasonally adjusted basis) slipped slightly while inventories edged
higher, the United States Department /<Aof ..rConurierce. currently
reports.
••
:
•.<:;:Lvn!
Although stocks advanced to $90,800,0.00,000, up $200,000,000

contracts for

seven

the comparable

life

of your

care

nhnnt

mean

a program in your
plant call the American
"Cancer"

showed

year-end

arrange¬

Cancer

the

Current position at the 1956

way.

iion

out

are

the first

ab^ut

regular
dividend, with the

in the next five

They learn facts about

and death. For information

also

he
in

that

50c

people in

the difference between

year

adjustments

ger

c(aily

savinSs seem to afford interesting
long-term possibilities, despite the
steady erosion of earnings from
regular wage increases, etc.

maintain the

quarterly
possibility of

cancer

could

50c

business and industry.

which

but

year,

consolidated

balance sheet is still a little difficult to interpret, until final mer-

expect

the

life-line of

Fifth Avenue's portion only)
is equivalent to roughly $1 million
or $1.13 a share,

Avenue's

dipped.! .Daily runs averaged: 41843 350
barrels, down 78,650 barrels. Last year's rate Was 7;065,450 barrels

has

011

Fifth

*aiu

ago'

-.year

production of crude oil

and

declined

Carthy stated that 1957
might not equal the $3.47

posters, exhibits and lec¬

condition

companies

Runs averaged 7,936,000 barrel^ daily

"173,000 as- compared with 7.964,000..baiTel's.a1 day,- a

ber for

income

CANRFR I IFf-l |n|p
UnllULIl LI I L LII1L
Through films, pamphlets,

bus

merger benefits plus potential tax

At the annual stockholders'

meeting

oil industry's refineries stepped up:, their opera liar

nearly one-third.

reasonable

The

jng the latest week.

in-

charges and Fed-

taxes

seems

1957.

Mill"

financial

small

many

■
.

ahead 6.2%.

expenses

gross

light types, including those' used in:the home, increased

na^ Transit, Rochester Transit
anc* National City Lines. Delayed

company did not do as
last year, due to a slight

shrinkage in

the

well

ft ill DTD I irr

tax relief in many areas, and the

the increased number of shares

The

cities, setting

some

separate lane for the use

precarious

in
1948-50 and in 1953, but in other
recent years either $2 or $2.50 has

basis

$4 on the common stock in spotlighted the need for further
1937-39, and during the wartime relief. Fifth Avenue pays at least
period
earnings
fluctuated
be- 15 kinds of taxes, and seemingly
tween $2.6*9 and $3.67. The years the most unwarranted of these arc
1946-50 proved difficult with the the straight "utilities taxes" imcompany going rather heavily into posed by New York City and New
the red in 1943 (its only year of York State which aggregated 3%
loss operation). But beginning in of revenues or about $2 million
1951 increased fares finally re- last year. A bill was passed by the
stored share earnings to almost Legislature to end the State tax
their previous level, and except but Governor Harriman did not
for 1953 when earnings dropped sign it because (it is reported)
to $1.47 the record of recent years provision for the loss of revenue
has been favorable—particularly had not been made in the budget,
in 1956 when $3.47 was reported It seems probable that this legiscompared with $2.85 in the pre- lation will eventually be passed,
vious year. The, dividend record possibly in 1958. The 2% State
has been spotty, since the com- tax (after adjusting for the repany has chosen to make liberal duction in Federal income taxes

not

cancer

over

on a

same period last
year;
but while the latter includes Sur¬
face Transit figures they are not

our

being done in

edi-

909 for the

tures,

cars

stricted,

$7,000 surplus. - The" World' Tele-

gram

use

the

instead
in cer-

that

tain

gotten "out of the red" and earned

fight ating standards. This

successful

lecuiiing

industry.

the

buses

48,943,000 barrels, compared with 44,598,000 barrels last year on
corresponding date."/, ' ;
,«v.
'• y*r&'->'3:V-1

the Commis¬

prove

wrong,
and
of passenger

torially, that "one • of the TA's of buses along the curb is being
investors and -jobs: when \it was. set up was to .tried elsewhere. ;
from -transit prepare for the. sale ,of the buses
The industry is slowly obtaining

majority'of

■great

City-owned
-a

nevertheless,

but

is hopeful that ex¬

company

perience will

Fifth Avenue Coach Lines, Inc.
some

Thursday, August 15, 195;

put into effect in March.

was

The

By OWEN ELY

with

create additional one-way avenues

The transit industry,

Commissioner's

Traffic

Public

Continued from page

opposed
the
plan to

strongly

company

■

Chronicle

The Commercial and Financial

(712)

waterworks

months of 1957

were

and

sewers.

below the

16%

Contracts t

record set n

1956 period.

Steel Production Placed This Week at 81.9%

Ingot Capacity
A
"Steel"

turning point in
magazine stated

steelmaking
on

Monday

is apPraaC
current weck.^
pickup in orders for

operations
of

the

ducers are hopeful that there will be a
tember delivery.
Steel production, it added, is not as brisk as
year,

it was ear!J
but it is steady, having hovered around 80% of capaci J

six consecutive weeks.

In the week ended Augv 11, the nation's

operated

79%

capacity for

the

,or

steelmaking hh1'.

second

thjS

consecutive ^

Volume

Number 5664

186

The Commercial and Financial Chronicle

. .

2,022^000 net tons. Helping hold down output was
the Great-Lakes Stpel Corp., Detroit.
publication pointed out that steel orders will have

Yield was
strike -at
The

The index represents the sum total of the
price per pound of
raw foodstuffs and meats in general use and its chief function
is to show the general trend of food
prices at the wholesale level.

weeks the actual production that should cause
noticeable upturn in September.
Despite a slow summer, output for the first eight months of
this year will total around 78,500,000 net tons or 2,600,000 tons
above the output for the same period in 1955, the record steelmak-

Price

has been achieved in the face of slack demand

plans

indicate

many

the last week of

the

industry, there is some strengthening
that''^ocks' of 'finished machines have been re¬

In the'farpi implement
now

The appliance field. Continues to be marked with lethargy
and stocks haye-not-droppeduto the point where ambitious, pro¬
duced.

duction schedules iareb^

The construction industry
has played atbigivpart thisvye^r in taking up; some of the slack
stemming* from other steel; cpnsuming groups, this trade paper

y ; V/..
''Steel's" arithihetical composite on base pi-ices of finished
.steel remained at'*$14649"\,a net ton.in the week ended Aug. 7.
Its price composite^ on steelmakirig scrap is at the lowest level
states.

since the first week of June.

At $53.83 a gross ton, it is down 67
previous week, concludes this metalworking weekly.

cents from the

The

American

Iron

and

Institute

Steel

announced

that

the

operating rate of steel companies, having- 96.1% of the steelmaking
capacity for the entire industry will be an average of 81.9% of

capacity

for

the

beginning

week

Aug.

12,

1957,

for castings,

2,097,009 tons of ingot and steel

to
compared with
equivalent

79.8% of capacity, and 2,043,000 tons (revised) a week ago.
The industry's ingot production rate for the weeks in 1957 is
based on annual capacity of 133,459,150 tons as of Jan. 1, 1957.
For The Uke week, a month ago the rate was 79.3% and pro¬
duction 2,030,000 tons.. A year ago the actual weekly production
was placed at 2,154,000 tons or 87.5%.
The * operating rate is not comparable because capacity is
higher than capacity in 1956. The .percentage figures for 1956 are
based on an annual capacity of 128,363,090 tons as of Jan. 1, 1956.

„

Electric Output

Turned Lower the Past Week

The airpunt of electric energy distributed by the electric
light and power industry for the week ended Saturday, Aug. 10,
1957, was estimated at 12,070.000,000 kwh., according to the Edison
,

Electric

Institute.

Output the past week eased below
of the previous period.

the level

Arrivals

those of both

exceeded

the prior week

the 430,275 bags a year ago. Total arrivals in the United States
for the season to date amounted to 2,410,508 bags compared with

2,850,944 bags last year.
A slight decline in
slackened at the end of

prices

sugar

the week.

reported

was

There

was

in wholesale inventories. While coffee trading

close to those of

trading

moderate

sagged, prices

rise
were

week earlier.

Loadings Turned Fractionally Higher the Past Week
Loadings, of

revenue

freight for the week ended Aug. 3, 1957,
above the preceding week, the

by .4.304, cars, or 0.6%

Association of American Railroads reports.

Loadings for

the week

ended

Aug.

1957,

totaled 740.711

increase of 80,424 cars, or 12.2% above the corresponding
1956 week, when a nationwide steel strike was in its fifth and
final week, but a decrease of 19,676 cars, or 2.6% lower than the
corresponding week in 1955.

cars,

U. S. Automotive

Output Showed

Mild Decline Last Week

Automotive * output for the latest week ended Aug. 9, 1957,
according to "Ward's Automotive Reports," registered a slightly
lower trend

Last

with

week ago.

week's

output

car

totaled

120,908

units

and

compared

(revised) in the previous week. The past week's
production total of cars and trucks amounted to 139,630 units,
or a loss of 526 units below that of the preceding week's output,
119.323.

•slates "Ward's."

■.%

ivva

%'.%,• %.

Continued light receipts and high trading boosted hog prices
to the highest level in three years in Chicago. Hog receipts were
the smallest for a week since August, 1954. A slight rise in prices

week .and

19,493

Last week's

by 1,535

steers

19,493 trucks

were

assembled.

Prior Week's Trend and
Declined Moderately

Business Failures Reversed

Commercial

industrial

and

failures

declined

265

the

week ended Aug. 8

from 281 in the preceding week, Dun & Bradstreet, Inc. reports. However, the toll exceeded considerably the
229 a year ago and 169 in 1955. For the second consecutive week,
casualties remained above the prewar level of 252 in the com¬
parable week of 1939.

Failures

from 242 last week

Small casualties
previous

more fell to 229
but continued well above the 190 a year ago.

involving

week

liabilities

of $5,000

with 15 in the

$5,000 dipped to 36 from 39 in both the
the similar week of 1956.
Nineteen of the

under
and

failing businesses had liabilities in
1

excess

of $100,000 as compared

for the sixth week

Straight Week

row,

the wholesale food price

index, compiled by Dun & Bradstreet, Inc., rose 2 cents last week
to stand at
$6.39 on Aug. 6, a further new high since June 28,
1955, when it stood at $6.42. The current level marks a gain
of

4.8%

over

the $6.10 a

year

ago.

price the past week were wheat, corn,
oats,- hams, butter, milk, cocoa, potatoes, steers and hogs.
Lower were flour, bellies, lard, sugar, coffee, cottonseed oil, eggs
;:i)d lambs.
'
' .V
Higher in wholesale

bve,

e t
representatives. It has
suggested that this consulta¬

been

tion before the issue of securities

the market to anticipate
and make upward ad¬

may cause

rates

new

justments beforehand. It is stated
that the Treasury should make its
determination of appropriate

own

rates

and

secret.

volume, presumably in

other side of this

the

issue it has been shown that it is

•

consult with

necessary to
number
of

large

people ' representing
different types of lenders in
view of the large volume of fi¬
nancing which the Treasury must

many

undertake. This
been

followed

period

policy, which has

for

time,

is correct

maintained
that the

long

considerable

before

even

into

came

and

discretion is

this

power,

understood

Treasury does not commit

ing and

stocks

the

week,

1956

similar

the

For

the

about 7,697,000

amounted to

period last

through

July 30 exports
bales, compared with 2,215,000 bales
season

year.

of any

particular suggestion.
Other

Finally I note three other

(1)

issues which I have put in a mis¬
cellaneous category, even though,
on

closer

fitted

examination, they might
into

either

the

two

major categories I have just de¬

scribed. The first relates to hous¬

arises from claim that a
in
housing starts has
been»a goal of this Administration.

reduction

that I was greatlv im¬
pressed with the answer of Secre¬

Trade Volume in Latest Week Held Close to Level of

Similar Period
While total retail sales advanced

in 1956

during the week,

they were close to those of the similar -1958 level. Numerous sales
promotions encouraged consumer interest in boys' and girls' backapparel, while the call for children's Summer clothing
slackened.
Sales of both women's
Summer and
Fall
apparCl'
remained at a high level, and men shoppers stepped up their
buying of Fall merchandise. Automobile dealers reported a mod¬

erate

rise in

volume

new

and used

passenger cars,

and sales

Slightly exceeded those of last year. There was a slight year-toyear decline in purchases of major appliances, but interest
in
television sets equalled that of a year ago.

weather

many

Despite continued hot

regions, volume in air conditioners slackened.
with gains in

Furniture stores reported a fractional rise in sales,
bedroom suites and case goods.
^ .
The total dollar volume of retail trade in the

Wednesday of last week

was

period ended on
1% below to 3% higher than a year

ago, according to estimates by Dun & Bradstreet, Inc.
Regional
estimates varied from the comparable 1956 levels by the follow¬

England and West South Central —2 to
+1 to -J-5; East North Central, West North
Mountain 0 to -j-4; South Atlantic and East South

ing percentages:
4-

New

2: Middle Atlantic

Central

and

Attracted
increased

period.
Show

0; Pacific Coast —5 to —1%.
by showings in Chicago and

their

purchases

The volume

was

better-priced merchandise. While orders for air conditioners
slackened, the buying of television sets and automatic washers
continued at the level of the prior week. There was another rise
in purchases of women's Fall apparel, with noticeable gains in
budget dresses, sweaters and skirts. Except for some scattered
orders in

print cloths, trading in cotton gray goods lagged.

call for industrial fabrics

and man-made fibers

was

sustained

a
high level.
Food buyers were primarily interested
meat, fresh produce, some dairy products and rice.

Department

store

sales

country-wide

The

basis

in fresh
as

taken

housing starts, is

the

increase of 2% was

trade

sales volume in

move

The

(2)

moral if they set
to

secure

goods,

ready-to-wear

shoes and

vide
It

funds

wear

seems

income

must

renewal.

accounted

for

the

expansion.

that it

should

portion of
put aside by
for expansion

some

corporation

every

and

prices sufficient

finance

self-evident that
its

All

funds

used

for

expansion

(other than those se¬
cured from equity financing) must
be

out

from

income—whether

income

current

future income to repay

from

borrowing.

(3) My third and final issue in
this category relates to the claim
that

since

took

the Federal
Reserve
substantial portion of the

latest

rate of

refunding

rates

and
the

was

4%, this must indicate that
in

increase

constant

refunding,

Treasury
that

since

interest

be assumed for the fore¬

can

seeable future. However, it is im¬

possible

can

how, this

see

Interest

fluctuated

have

rates

conclu¬

from

drawn

considerably,

those

always

even

dur¬

ing the past few years, and there
is

men's

miscel¬

return which will pro¬

assurance

few

either
are

that

higher

during

they

months

City the past week

registered a 6 to 8% gain over the similar period a year ago.
Good weather and a better than normal response to white

second

laneous issues relates to the claim
that corporations are somehow im¬

New York

competitive, funds will again
into the housing market.

come

facts.

response

and was not deliberately planned
by anybody. As demand shifts, and
interest rates
on
mortgages be¬

3, 1957, declined 1% below the like period last year. In the pre¬
ceding week, July 27, 1957, an increase of 4% was reported. For
the four weeks ended Aug. 3,1957, an increase of 3% was recorded.
period Jan. 1, 1957 to Aug. 3, .1957,

influence of the free market;

sion

registered above that of 1956.

charge

by pointing out that the reduction

from the Federal Reserve Board's index for the week ended Aug.

For the

this

when he clearly defined the issue

come

Kansas City, buyers
chairs and occasional

close to that of the comparable 1956
the New England Curtain and Drapery
Boston reported moderate year-to-year gains in sales

Wholesalers
in

of upholstered

Humphrey

tary

somewhat

to-school

Retail

Wholesale Food Price Index in Latest Period Extended

m a r

parable

preceding week.

Its Gains for Sixth

(3) The third issue relates to the
Treasury policy of consulting with

itself in advance to the acceptance

trast

Lard

furniture.

output rose above that of the previous week

while truck output declined by 2,111 vehicles during
the corresponding week last year 108,167 cars and

cars,

the week.

trucks made
the previous

a year ago.
car

would

occurred, but lamb prices slipped fractionally. In con¬
price rises on hogs, lard prices dipped somewhat.
in Chicago totaled 39,677,113 pounds at the end of
July compared with 39,646,516 pounds a month earlier and 84,185,956 pounds a year ago.
Reports on favorable weather conditions in growing areas
resulted in a moderate decrease in cotton trading during the week
and prices were below those of the prior week. The New York
Cotton -Exchange estimated that United States exports of cotton
staple in the week ended last Tuesday totaled 130,000 bales,
against 109,000 bales a week earlier and 33,000 bales in the com¬

Central -—4 to

Last week the agency reported there were 18,722
in the United States. This compared with 20,833 in

policy

Interest rates.

Administration

;

this

I must say

past weqk's output declined 404,000,000 kwh., under that
of the previous week; it rose 540,000,000 kwh., or 4.7% above the
comparable 1956 week and 1,341,000.000 kwh. over the week ended
Aug. ' 13, 1955. l-i ,v': ;■ yr
:.
%,
•
.

advanced

earlier,

the acceptance of consider¬

inflation in return for lower

able

and

the comparable period last year. Stocks of corn in Chicago totaled
25,000,000 bushels, down slightly from the preceding week.
Prospects of a year-to-year decrease in the soybean harvest
resulted in increased prices, but trading fell appreciably. Total
purchases of soybean futures in Chicago the week before amounted
to 104,828,000
bushels, compared with 162,103,000 bushels in the
prior week and 78,870,000 bushels in the similar 1956 week. The
daily volume of trade in all futures in Chicago averaged about y
51,000,000 bushels.
•
*'
'
Both spot and futures prices on cocoa fell somewhat last week
as
trading lagged. Warehouse stocks of cocoa in New York de¬
clined slightly to 351,576 bags during the week and were below

The

Car

cated
mean

17,110,000 bushels during the week, compared with 24,210,000^
a week earlier and
17,975,000 bushels a year ago. There
a
slight decline in corn futures prices as buying activity

slackened.

November; Bffesdnt schedules call for introduction in
period?of 15 hf ,thev industry's 19 makes.

of activity

by the Federal Reserve. As indi¬

was

October and thd

rates through rigid price supports

bushels

1958

first week of
this

Developed

Finance Committee

general

on the comparable date a
year ago.
Increased trading resulted in a moderate rise in wheat futures
prices the past week. Wheat receipts at primary centers amounted

orders

changeover

the

and with 291.47

automobile industry. Steelmakers still find automotive
disappoioting. .Some orders for preliminary rims on 1958
models are developing,, but large tonnages are not due until next
month, this trade weekly reports.

'from the

page

increases

on
livestock, flour and some grains helped
commodity price level last week.
The daily
wholesale commodity price index, compiled
by Dun & Bradstreet,
Inc., rose to 294.91 on Aug. 5, compared with 294.40 a week earlier

boost

from

Before the Senate

Further the Past Week

?ing year.

Issues

AVholesale Commodity Price Index Advanced Slightly

Automakers'-

Continued

precede by several

The 1957 figure

(713)

will

the
be

lower than they

today. This concludes my sum¬

mary

of the issues.

good showing.

According to the Federal Reserve Board's index, department
ended Aug. 3,

C. Byron

store sales in New York City for the weekly period

In
the preceding week, July 27, 1957 an increase of 8% was reported.
Tor the four weeks endiilg Aug. 3, 1957, an increase of 4% was
registered. For the period of Jan. 1, 1957 to Aug. 3, 1957.,-.the index
recorded a rise of 4% above that of the corresponding period of
1957, increased 3% above that of the like period of last year.

956.

Aug. 12 at the age
ap

Koerner

Byron Koerner

passed away

of 80 following

extepded, illness.. Mr^ Koerner

was

associated with the First

vestors

Corporation.

in¬

The

(714)

Commercial and Financial

Chronicle .'.

Thursday, August 15,

if INDICATES

•

Allied

Paper Corp.,

Chicago,

III.

stock; offer to expire

Statement effective

Sept. 6.

Aug. 7.

it Aloe
Aug. 9

Co., St. Louis, Mo.
(letter of notification) 7,450 shares of common

(A. S.)

stock

$5). Price—At market (estimated at $37
Proceeds—To Estate of Edith R. Aloe, de¬
Newhard, Cook & Co. and

(par
share).

per

Underwriters

ceased.

—

Scherck, Richter Co., both of St. Louis, Mo.
•

Alsco, Inc., Akron, Ohio (8/26)
June 28 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds — For
expansion, repayment of loans and for working capital.
Underwrter—-Van Alstyne, Noel & Co., New York.

it American Educators Life Insurance Co.
Aug. 5 (letter of notification) 142,500 shares of common
stock (par $1). Price—$2 per share.
Proceeds—To go
to capital stock account and surplus accdunt.
Office—
4601 North Seventh

Ave., Phoenix, Ariz.

•

Underwriter—

Cameron

Industries,

filed

New York

Inc.,

American Income Fund, Inc., New York
May 24 filed 500,000 shares of capital stock (par $1).
Price—At

market.

ment Adviser

—

investment.

Under¬

is President.

Invest¬

Proceeds—For

Burton H. Jackson

writer—None.

Securities

Cycle Research Corp., New

July

•

Carolina

Mokafe Corp.

Natural

Gas

(8/21)

Corp.

July 26 filed $1,600,000 first mortgage 6% bonds due
Aug. 1,1982, $800,000 6V2 sinking fund subordinated de¬
bentures due Aug. 1, 1977, and 112,000 shares Of common
stock (par $1) to be offered in units of $100 of bonds, $50
of debentures and seven shares of stock., Price—To be i
supplied by amendment. Proceeds—For new construetion, etc. Office—Hickory, N. C. Underwriters—Cruttenden, Podesta & Co., Chicago, 111., and Odess, Martin &

(letter of notification) $120,000 of 10-year 6%

first mortgage bonds (in denominations of $1,000 each),
120 warrants for common stock and 1,500 shares of com¬
stock

(no par).

Each $1,000 bond has detachable
shares at $15 per share exercis¬
able at any time through June 30, 1959. Price—Of bonds,
at par. Proceeds — For construction and improvements,
payment of debts and working capital. Office—5020 Wis¬
consin Ave., Washington, D. C.
Underwriter—Mackall
& Coe, Washington, D. C.

mon

warrants for 10

Celotex Corp.

Apache Oil Corp., Minneapolis, Minn.
July 22 filed 200 participating units in Apache Oil Pro¬
gram 1958.
Price-—$10,000 per unit. Proceeds—To ac¬
quire, develop and operate oil and gas leaseholds; and for
other corporate purposes. Underwriter none; sales to be
made through corporation and

APA, Inc., its subsidiary.

Atlantic Refining Co.

July

filed

$100,000,000

convertible

subordinated

(8/19-20)

★

Dilbert's Quality Super

petitive bidding.

Underwriter—G. F.

Stone

Rothschild

Co.,

Inc., New

construction program.

Uranium

New

(8/20)

Corp.

May 14 (letter of notification) 600,000 shares of common
stock (par $1—Canadian). Price—50 cents per share.
(U. S. funds). Proceeds—For exploration costs, etc. Of¬
fice—5616 Park Ave., Montreal, Canada.
Underwriter—
Jean R. Veditz Co., Inc., 160 Broadway, New York.

& Telegraph Co.

owns

York.

proximately 30% of the outstanding capital stock.
Coastal Chemical Corp., Yazoo City, Miss.
May 1 filed 150,000 shares of class C common stock to

deceased. Underwriters—McCormick & Co., Chi¬
I1L; Stifel, Nicolaus & Co., Inc., St. Louis, Mo.;
Schneider, Bernet & Hickman, Dallas, Texas.

C & D

Price—At

($25

March 28

(letter of notification) 14,000 shares of com¬
stock (par $10) to be offered for subscription
by
stockholders and employees.
Price—$12.50 per share.
Proceeds
For machinery, equipment, inventories and
working capital. Office — Washington and Cherry Sts.,
Conshohocken, Pa. Underwriter—None.
mon

—

Calidyne Corp., Winchester, Mass.
May 1 filed $1,250,000 of Limited Partnership Interests to
be offered first to
present limited partners at the rate of
one
$1,000 unit for each $1,000 of his present investment;
then to public.
Price—$1,000 per unit. Proceeds — To
construct plant; to purchase

machinery and equipment;

and to reduce

duces

outstanding demand notes, Business—Pro¬

electro-dynamic shaker

and

other vibration

test

equipment.

Underwriter—None. Robert C. Lewis, Philip
C, Efromson and Thomas
Gouzoula, all of Winchester,
Mass., are the general partners of this Massachusetts
Limited Partnership.
★ Calvert

Drilling, Inc., Oiney, III.
Aug. 13 filed 250,000 shares of common stock (par $1).
Price
To be supplied
by amendment.
Proceeds—To

•

■'

..;

'/77~y^7y

Inc.

j^)777;:77" '7 '",7'%^./. :J:'7"'-\Aug. 9 filed 340,000 shares of common stock, of which
200,000 shares are to be publicly offered at $3 per share
and 140,000 shares to, stockholders of Sun Valley Mining
Corp. at $1 per share. Proceeds—For exploration and

share). Proceeds—
To construct and operate facilities for manufacture of
par

per

Corp., Yazoo City, Miss.

acquisition of mines; and for working capital.
writer—For

stock from

common

estate

for

Associates, Boston, Mass.
-.7' N-'-*'-". •,
Aug". 9 filed 88,761 shares of common stock (no par).to

aggregate amount

by common stockholders of
Aug. 28 on the basis of one new share for
each four, shares held, rights to expire on Sept. 17. Price
record

•

Memphis, Tenn. (9/3-6)
) •' t • V; .
May 2 filed 750,000 shares of common stock. Price—$2
per share. Proceeds—To construct miU;for payment on,
and

royalty agreemenL

San

.supplied by amendment. Proceeds—For forma¬

and

Co:,

remainder by The Employers' Liability
Cdrp. Ltd. : Underwriter—Morgan -Stanley k

the

N^\v York.

--7-

FederalJnsurance Co.

;

>T.V^

Uiiderwriter—-

Corp.,; New York.

;r-

★ Commonwealth Income; Fund, Jnc*
Aug. 8 filed 500,000 shares Of :common .stock
Price—At market.

Insurance

for subscription

about

tion ofTife insurance company, 51% of the voting stock
of which will be owned by Employees & Group Associ¬

ates

Comico Corp.,

leases

Under¬

Sherry Co., New York.

(8/29)>YY

(par 100).
Price—At market.
Proceeds-r-To selling stockholders.:
Underwriter—Glick & Co., Inc., New York.

mining

public offer, John

★ Employers' 'Group

—

Southeastern Securities

Batteries, Inc.

7v-7-u

★ Empire Sun Valley Mining Corp., Jerome, Ida.

be offered for sale to farmers and other users of fertilizer

—To

com,

•.

Colonial Aircraft Corp., Sanford, Me.
July 5 filed 248,132 shares, of common stock

and

—

ap¬

—None.

cago,

7 "7T

(8/19)
July 31 (letter of notification) 100,000 shares of Class
A common stock (par 10 cents).f Price—$3 per share.
Proceeds
For acquisition or lease of plant, and for
working capital, etc. Office—67 East Centre St., Nutley,
N. J.
Underwriter—Singer, Bean & Maekie, Inc., New
York.i:*rr
1 'Y-y :/•- ■ -/N; ■ :Y Y- .. •/'r ' Y.vY '■ , v

be offered

(par $1). Price—At market (estimated at
$13 per share). Proceeds—To Estate of Charles E. Bas¬

...

Electronic Research Associates,

$1,054,613, and for working capital and other corporate
purposes.
Underwriters —Paine, Webber, Jackson &
Curtis and Blair & Co. Incorporated, both of New York.

stock

Sept. 10.

Underwriter—-White, Weld & Co.,

\7., '77

New York.

on the basis of one new share for each
10 shares held;
rights to expire on Oct. 3, 1957* Price—At par ($50 per
share.) Proceeds—To reduce bank loans. Underwriter—

American Telephone

it El Paso Natural Gas Co. (8/28)
Aug. 7 filed 100,000 shares of cumulative preferred stock,
second series of 1957 (par $100). Price—To t>e supplied
by amendment. Proceeds—To repay bank loans and for
construction program. Underwriter—Whit"e, Weld & Co.,

Cincinnati & Suburban Bell Telephone Co. (9/3)
Aug. 2 filed 124,991 shares of capital stock to be offered
lor subscription by stockholders of record Aug. 27, 1957

None.

it El Paso Natural Gas Co. (8/28)
Aug. 7 filed $60,000,000 convertible debentures due Sept,
1, 1977 to be offered for subscription by common and
common \B
stockholders of record Aug. 26, 1957, with
rights to expire on Sept. 11, 1957. Price—-100% of prin¬
cipal amount. Proceeds—To reduce bank loans and for

York, N. Y.
Chess

bidders: Halsey. Stuart &
Corp.; Morgan Stanley & Co.;
Webster Securities Corp. /Bids — Tentatively
Probable

scheduled to be received

if Chatham Oil Producing Corp.
July 29 (letter of notification) 100,000 shares of 19 cent
non-cumulative convertible first preferred stock
(par
30 cents). Price—$3 per share. Proceeds—For oil devel¬
opment operations. Office—42 Broadway, New York 4,
N.

(9/10)

Co. Inc.; The First Boston

Underwriter—None.

Tex.

Underwriter—S. D. Fuller & Co.,
7^v777'U f■'Y7.

7&r>i{s

Sept. 1,1982. Proceeds—To repay bank loans and for new
Underwriter—To be determined by com¬

mon

(8/26-30)

construction.

$360,000 of participations in partnership
interests. Price—$10,000 each participation (minimum).
Proceeds—To buy an apartment building. Underwriter

★ Broderick & Bascom Rope Co., St. Louis, Mo.
Aug. 12 (letter of notification) 20,000 shares of com¬

Markets, Inc.

Aug. 1 filed 180,000 shares of 7% cumulative first pre¬
ferred, stock (par $10) and 180,000 shares of common

Aug. 8 filed $50,000,000 of sinking fund debentures due

Coastal States Gas Producing Co.
(8/20)
^
July 30 filed 150,000 shares of common stock (par $1).
Price
To be supplied by amendment.
Proceeds — To¬
gether with other funds, to purchase 150,659 shares of

July 25 filed

•

Daybreak Uranium, Inc., Opportunity, Wash.
May 7! filed 631,925 shares of common stock (par 10
cents): price — At market (approximately 53 cents per
share). .Pjfyceeds—To selling stockholders. Underwriter
Herri n Co., Seattle, Wash.
v

^ Duke Power Co.

loans and for acquisition and development of production
properties and for acquisition and improvement of re¬

Bridgeyiew Towers Associates, Fort Lee, N. J.

Expected this month (July).

—Gleridaie, Li I., N. Y.

anhydrous ammonia. Underwriter—Mississippi Chemical

Under¬

Underwriter—Roth & Co., Maplewood, N. J. Offering-

'New Ybrk.

both of New York.

debentures due Aug. 15, 1987. Price—To be supplied by
amendment.
Proceeds —To repay $81,000,000 of bank

fining, marketing and transportation facilities.
writer—Smith, Barney & Co., New York.

prospecting'expenses, working capital and • other corpor¬
ate purposes. tOffice—83 Campfield St., Irvington, N j

—

materials.

(8/20)

com¬

—

common

Anchorage Gas & Oil Development Co., Inc.
July 24 (letter of notification) 160,000 shares of common
stock (par $1). Price—$1.25 per share. Proceeds—For
development of oil and gas properties. Office — 505
Barrow St., Anchorage, Alaska. Underwriter—Grace C.
Tucker, 500 Wall St., Seattle, Wash.

(letter of notification): 560,000 shares of

stock (par one cent )> r Price — 50 cents per share.
Proceeds? -7 For diamond drilling on company's lands,

(pair 10 cents) to be offered in units of one pre¬
ferred; and one common share. Price—$10.10 per unit.
Proceeds—To acquire Big Ben Supermarkets • for equip¬
ment and merchandise for five new supermarkets; and
for working capital and other corporate purposes. Office

if Central Airlines, Inc.
■/
July 29 (letter of notification) 105,000 shares of common
stock (par 25 cents). Price—$2 per share.
Proceeds—
For payment of notes payable and to reduce trade ac¬
counts payable.
Office — Meachem Field, Fort Worth,

American Trailer Co., Washington, D. C.

Statement effective
7:'- ' 7:-n7
Mine Development Corp. 7
,,

stock

July 31 filed 150,000 shares of common stock (par $1).
Price
To be supplied by amendment.
Proceeds —For
working capital and general corporate purposes. Under¬
writers
Hornblower & Weeks and Eastman Dillon,
Union Securities & Co.,

July 11

N J

mon

of America
July 12 (letter of notification) 120,000 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—For
machinery, equipment, inventory and working capital.
Office—701 Monroe St., Hoboken, N. J.
Underwriter
Garden State Securities, Hoboken, N. J.
N/v/;'/.//// -.'7
Caramba

American Provident Investors Corp.
Feb. 15 filed 50,000,000 shares of common stock (par one

of New Orleans, John S. Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.

CoUgar
March 15

Co., Inc., New York.

York.

cent). Price—$2 per share. Proceeds — For working
capital and general corporate purposes. Office—Dallas,
Tex. Underwriter—Peoples Securities Co., J. D. Grey,

&v Co"Boston, Mass.
3177 77 Y i7'r7"7-T-'..Y

Lister,

300,000 shares of common

Herzberg, Inc., Birmingham, Ala.

None.

Paterson,

April 24 filed 400,000 shares of common stock (,par 10
cents). Price—$1 per share. Proceeds—For exploration
and development of .properties; . Underwriter — Lewavd

stock (par 10
cents). Price—$1 per share. Proceeds—For exploration
and development program. Underwriter—R. G. Worth &
June

PREVIOUS ISSUE
ITEMS REVISED

Continental Mines & Metals Corp.,

bank debt and other indebtedness and for work¬
ing capital and other general corporate purposes. Un¬
derwriter—W. E. Hutton & Co., Cincinnati, Ohio.

prepay

July 15 filed 21,000 shares of common stock (par $8) to
be offered in exchange for outstanding common stock
of Allied-Albany Paper Corp. on the basis of 5/22nd of
a share of Allied stock for each share of Allied-Albany

ADDITIONS

SINCE

Now in

Securities

1957

Proceeds—For investment.

77:- N

77'
<par. $1).-.,
Office—

Shar«. '

Off^tkhak".become effective

upon

.acceptance ;b:

;' holders p|/pQre thaif3&^
Golonial stock and will continuednclhdihg ;W|7l6, unless extended.: Dealer"
Consolidated Fenimoreiron Mines, Ltd^/
~
'Mkhager's^^nie^irst Boston Cofpk ahd Spencer Trask «
June 26 (letter of notification) 150,000 shares of common
Co., both off NeW York. Exchange Agent—Fidelity Union
stock (par $7). Price—At market (closing price on To¬
'Trust Co., Newark, N. J.
•
ronto Stock Exchange as of June 14, 1957 was $1.82 bid
<;7

Francisco, Calif.

,v,

;

-i;4.

and $1.85
penses.

asked, per share). Proceeds*—For mining ex¬
Office—c/o Roy Peers, 9 De Casson Rd., Mon¬

treal, Canada. Underwriters—Thomason, Kernaghan &
Co., Ltd., Toronto, Canada, and R. P. Mills & Co., Ltd.,

Montreal, Canada.

Conticca
March

International Corp., Chicago, III.
13 filed 558,100 shares of class A common

(par $1).
current

Price—$5

notes

per

share.

Proceeds

—

expansion and other corporate purposes.
stock

To discharge

payable, including bank loans,

First National Life Insurance Co., Phoenix, Ariz*
July 29 filed 106,500 shares of common stock (par s '
of which 90,000 shares are to be offered
publicly^
16,500 shares to employees pursuant to stock purcna
options. Price—To public, $12 per share. Proceeds--^

and

Underwrite

None.

it F.rst National Life Insurance Co. of

Phoenix

long
term debt in the total sum of approximately $1,030,000:
for new equipment; and for working capital.
Under¬
writers
Allen Shaw & Co., 405 Lexington Ave., New

July 29 (letter of notification) 25,000 shares of coning
stock (par $4).
Price — $12 per share. Proceeds —7
capital and surplus. Office—^First National Life Uic'to"

York

None.

—

17, N. Y.; and Shaw & Co., San Marino, Calif.

1230 E.

Camelback Road, Phoenix, Ariz.

Underwrite: —

Number 5664

186

Volume

The Commercial and Financial Chronicle

. . .

Pompano Beach, Fla.

Florida Trust,

filed 850 certificates of beneficial interest in
the Trust.
Price—$1,000^ per certificate. Proceeds—To
acquire by purchase, lease or otherwise, and to hold,
own subdivide, lease, mortgagee-exchange, bargain, sell
and convey lands and every character of real property.
March 4

Underwriter—None.
Fluorspar

stock (par

Frigikar Corp.
6 (letter or notification)
9,000 shares of common
(par 50 cents). Price — At market (estimated
$5.50 per share). Proceeds—To go to Daniel D. Dilling¬

ceeds—To

ham.

and

June

stock

Office—1602

Cochran

St., Dallas, Texas. Under¬
writer— Muir Investment Corp., San
Antonio, Texas.
Fruehauf

Trailer

Co.

$1) jo be offered for subscription by

stock

2% dividend of

common

Office—10949

stockholders on the basis of one new share for each four

stock to fractional shareholders.

common

writer—None.

held. Price—$8.50 per share. Proceeds—For min¬

operations. Office—433 S. E. 74th Ave., Portland,
Ore.
Underwriter—None.
ing

NEW
16

August

ISSUE

(

August

and

1,537,500 shares of

(Singer,

150,000

', "

Mackie,

Bean

Inc.)

;

(Albert

Co.,

$206,250.'

Inc.)

$100,000,000

Co.)

(S.

New

Corp

Gas

'•('

150.000

Common

Securities

Microwave

Co.,

August 21

Michael

(Offering

In'c, 1 _i_
(Van

•

(Monday)

Noel & Co.)

(Bids 11:30

(Kidder,

Steel Improvement & Forge
(Fulton,

Reid

Co.,

and

Mitchum
.

;

^•El

Paso

Natural

-Debentures

Kidder,

Columbia

United

Inc.;

Co.,

Aetna

(Bids

Securities Corp.;

312,506

Co.)

August 31

Common
by

(Tuesday)

Common
124,991 shares

Common
Securities

Corp.)

Common

$600,000

(Bids

invited)

Bonds

$1,500,000

Thorndike,

-Preferred
Inc.

and

Syle

Stratford- (John G.) Film Corp
(Joseph

Mandell Co.)

(Tuesday)

Debentures

(Thursday)

Co.)1 $91,540

.Common
$299,999:"

dividends.

Dealer-Managers—Paine, Web¬
Stone & Webster Securities
Corp., both of New York.

Debentures
$25,000,000

Public

(Tuesday)

Bonds or Preferred

$25,000,000

Mount Vernon, N. Y. (8/19)
of 6J/2% convertible debentures
20,000 shares of common stock (par $1).
be supplied by amendment. Proceeds—To re¬
loans and for increased inventories and other
purposes.
Underwriter—P. W. Brooks & Co.
York.

and

Price—To

bank

Inc., New

Giant Petroleum Corp.
July 22 (letter of notification) 150,000 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—To
pay outstanding debt and for working capital.
Office—

•

Moulding Corp.
$1,000,000 of 6% convertible debentures
31, 1967. Price—At par. Proceeds—To in¬
crease
company's activities and for working capital.
Office—Henderson, Ky. Underwriter—Cook Enterprise,
Inc., Ill S. 7th St., Terre Haute, Ind. Statement effec¬
tive Aug. 7.

to be

Bonds

(Tuesday)

EDT)

October 29

Inc.—Bonds

$50,000,000

(Tuesday)

American Telephone & Telegraph Co._-Debentures
(Bids to be invited) $250,000,000

November

Ohio Power

(Tuesday)

Bonds

Co.—
(Bias

a.m.

EST)

(Bids

$28,000,000

Preferred
11

a.m.

EST)

$7,000,000

invited)

December 10
Indiana & Michigan

Bonds

(Bids

$20,000,000

a.m.

EST)

$20,000,000

holders of Great Lakes Oil & Chemical Co.

basis of

Price—$1.25 per share. Proceeds
costs, improvements, expansion, etc.
Los Angeles, Calif.
Underwriter — DempseyTegeler & Co., St. Louis, Mo.
—For

exploration

Office

—

^ Guaranty National Insurance Co.
July 23 (letter of notification) an undetermined number
of shares of common stock (par $1) to be offered indi¬
rectly by Federal Investors, Inc., by offer of its own
securities.
Proceeds—For capital and surplus. Office—
2185

Broadway, Denver 5, Colo.

Underwriter—None,

jlr Heat-Timer Corp.
Aug. 12 (letter of notification) 25,000 shares of common
stock (par 20 cents).
Price—$1.25 per share. Proceeds
—For working capital.
Office — 657 Broadway, New
York 12, N. Y. Underwriter—None.
(8/21-22)

July 26 filed 120,000 shares of common stock (par $1.50).
Price
To be supplied by amendment. Proceeds — For
—

working capital and for construction program.

(Tuesday)

Electric Co

Natural Gas Corp.

779,393

f Holiday Inns of America, Inc.

(Tuesday)

Virginia Electric & Power Co

Lakes

15 filed

Oil & Chemical stock.

(Wednesday)

a.m.

March

one-fourth share of Natural Gas stock for each share of

Power Co
Debentures
(Offering to common stockholders—bids noon EDT) $35,156,760
October 22

filed

shares of common stock (par 50
cents) to be offered for subscription by common stock¬

invited) $30,000,000

October

July

Service Co. of Indiana, Inc
(Bids

St., New York, N. Y. Underwriter—A. G.
Corp., 52 Broadway, New York, N. Y.

Automatic

Gibbs

Great

to $50,000,000

(Wednesday)

Inc.,

26 filed $500,000
1977

due

Inc
8

secu¬

Bellin Securities

invited)

(Bias

Quaker State Foods Corp
&

December

Northwestern Public Service Co

(Childs, .Jeff^ri^s

Bonds

Ohio Power Co

$1,500,000

Empire Sun Valley Mining Corp
(John Sherry Co.)

(Bids

Comico Corp.
(Southeastern

$17,000,000

Consolidated Edison Co. of New York,

Cincinnati & Suburban Telephone Co
(Offering to stockholders—no underwriting!

invited)

System,

October

Kidder,

Pacific Telephone & Telegraph Co.——Common
(Offering to stockholders—no underwriting)
1,822.523 shares

(Saturday)

September 3

Preferred

Consumers

stockholders—underwritten

Peabody

$10,000,000

and

$300,000

Utilities, Inc

(Offering

accrued

corporate

(Monday)

Commonwealth Edison Co

(Thursday)

Johnson i

October

Debentures
&

Gas

and

Brothers

Hycalog, Inc.
Roman

Bonds

Bell Telephone

(Bids

.1
Common
(Offering-to stockholders—underwritten by Morgan
v
Stanley & Co.) 88,761 shares

Reed

offered

May

Employers' Group Associates..

(Keith,

(Wednesday)

October 3

$650,000

400,000

Co.)

and

(Bids to be invited) $100,000,000

—Bonds

Lehman

Common

400.000

$8,000,000

October

-Common

Co.,

Peabody

August

(Bids

being

are

share-for-share basis, plus, in each case, cash

Genung's

Gulf States Utilities Co

Southwestern

•

Walt Disney Productions
&

225 East 46th

—-Debentures

Sachs

invited)

cumulative pre¬

July

$10,000,000

Jaffray & Hopwood)

(Piper,

$60,000,000

Texota Oil Co._

(Goldman,

(Bids

5.80%

redemption premium for each such
exchange: 5Y>% and 6% cumulative
preferred stocks of Durham Telephone Co., the 6%
cumulative preferred stock of Georgia Continental Tele¬
phone Co., and the 5%% cumulative preferred stock of
South Carolina Continental Telephone Co. and of South¬
ern
Continental Telephone Co.
This offer will expire
on
Aug. 30, 1957. All shares not surrendered for ex¬
change will be redeemed on Sept. 12, 1957. The re¬
maining 27,880 shares are being offered to public at par

due

—

invited)

Northern Illinois Gas Co

-Preferred

EDT.)

a.m.

September

Public Service Electric & Gas Co
(Bids

& Light Co..

'Bids

120,000 shares of

(par $25), of which 92,120 shares

in, exchange for the following outstanding

pay

Co.__

Gas

filed

offered

Bonds

$15,000,000

Invited)

September 25

Common
86,709

$60,000,000

(White, Weld & Co.)

—

(White, Weld & Co.)

General Telephone Co. of the Southeast

$40,000,000
^

Bonds

$40,000,000

Inc.)

invited)

'(Bids

•••;•

Utah Power

■*

Co._j___

Gas

Natural

•

Bonds

(Tuesday)

Light- Co

Power

(8/27)

Washington, D. C.
(letter of notification) $150,000 of 10-year 6%
subordinate convertible debentures.
Price—At par (in
denominations of $100 each).
Proceeds—To discharge
short term obligations and for working capital. Office—
1022 18th St., N. W., Washington, D. C.
Underwriter —
Whitney & Co., Inc., Washington, D. C.

$35,000,000

EDT)

Telephone Co. of California

Genie Craft Corp.,

Co.—___—^

September 24

(Wednesday)

August 28
El Paso

General

Aug. 7 filed 500,000 shares of cumulative preferred stock
(par $20). Price—To be supplied by amendment. Pro¬
ceeds—To repay bank loans and for new construction.

June 28

(Monday)

Niagara Mohawk Power Corp

$10,000,000

PDT-»

Bonds
$20,000,000

invited)

(Bids 11:30 a.m.

dBids 8:30

of notification) 240,000 shares of common
$1). Price—$1.25 per share. Proceeds—To re¬
tire outstanding debt; for expansion of subsidiary cor¬
poration and for working capital.
Office—c/o Edwin
F. Clements, 5312 Glenwood Ave., Youngstown, Ohio.
Underwriter—L. L. LaFortune & Co., Las Vegas, Nev.

stock (par

ber, Jackson & Curtis and

$4,260,000

EDT)

noon

Power

Consumers

Utah

Southern California Edison Co.

(Wednesday)

September «23

California '-—-Preferred
Curtis

Debentures
$12,000,000

Co.)

Ry.__—.-Equipment Trust Ctfs.

(Bids

Debentures

$1,813,000

Jones & Templeton)

$3,000,000

(Tuesday)

Pacific Power & Light Co._

Common

Incj

(Tuesday)

General Telephone Co. of
(Paine,- Webber, Jackson

underwriting)

EDT) $30,000,000

a.m.

Parking, Inc.

equivalent to the

(Monday)
Common

Peabody

(Bids

200,000

September 18

«-•

Preferred & Common

August 27

•

Offering to be made through selected dealers.
Application is still pending with SEC.

rities

& Rubber Co

General Tire

i.i__

$40,000,000

Natural Gas Co

Consolidated

Corp.--Bonds,. Debs. & Com.

';r-" (S. D. Fuller & Co.)

Bonds

invited)

■

Norfolk & Western

Dilbert's Quality Super Markets,
—_ii

General Credit, Inc., Washington, D. C.
Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971, with detachable
warrants to purchase
160,000 shares of participating
preference stock, to be offered in units of $500 of deben¬
tures and 40 warrants. Price—$500 per unit. Proceeds—
For expansion and working capital. Underwriter—None

ferred stock

_-----——-—if

Alstyne,

(Thursday)

stockholders—no

(Bids

•'

Ga.

Calif.

Debenture®

$30,000,000

Co.

Water

Haven

Kletz

$270,000

(Wednesday)

August 26
-

bly of controls; and for other corporate purposes. Ad¬
dress—c/o Positronic Corp., 2572 Ridgemore Road, N. W.,
Atlanta, Ga. Underwriters—Armstrong" & Co., Atlanta,

Underwriters—Paine, Webber, Jackson & Curtis, Boston,
Mass.; and Mitchum, Jones & Templeton, Los Angeles,

(Wednesday)

September 17

(CrUttnnden, Podesta & Co. and Odess, Martin & HOrzberg, Inc.)
$1,600,000 bonds, $800,000 debentures and 112,000 shares of stock

$1,125,000

Co.—

September

_Bonds

invited). $90,000,000,

Carolina Natural Gas

A1 sco,

Co.)

invited)

(Bids to

-Common

and

Inc.

Inc.)

(Bids to be

...Common

Fuller &

Electric

Philadelphia

New

shares.-

120,000

Pacific Telephone & Telegraph Co.___JDebenturea
.

(par $1). Price—$2 per share. Proceeds—To es¬
tablish production facilities for manufacture and assem¬

July

-Common

Corp.)

Corp._'__j___

Blaur.er &
&

stock

'.(Bids noon CDT)' $5,000,000 Pv'

$50,000,000

he invited)

September 12

Producing Co.____-

Southern Utilities

(Milton 'D.

General Automatics Corp., Atlanta, Ga.
May 23 (letter of notification) 100,000 shares of common

•

Bondi

(Bids

$300,000

Holiday Inns of America, Inc.
(Equitable

(Tuesday)

Jersey Bell Telephone Co

(Paine, Webber/Jackson & Curtis and Blair & Co. Incorporated)
.

by Stone
.shares

Common

.(Jean R. Veditz Co., Inc.)

States

217,286

(Hal) Productions

Uranium

Common

September 11
Debentures

Barney

$18,000,000

Corp.)

Washington 25,

June 18 (letter

(Bids to

Roach

(Tuesday)"

Refining Co..
(Smith,

EDT)

a.m.

Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers
Glore, Forgan & Co. (jointly). Bids — Had been
(EDT) on May

General

(Thursday)

September 10
Power

Duke

Bonds & Common.

August 20

States.

C., but bidding has been postponed.

$25,000,000

Bonds

Securities

Webster

Co.)

of the United

named.

—Debentures

stockholders—underwriten

(Offering

$500,000

(Jim) Corp

Narda

Securities

Union

(Bids

(Carl M. Loeb, Ehoades & Co. and Prescott, Shepard & Co., Inc.)
$2,425,000 '
/-;n'

<■.

Bonds
$12,000,000

Electric Co.

Tampa

Seminole Oil & Gas Corp.—...Common

ft.

Co
CDT>

Tampa Electric Co

-Debentures

(P. W,. Brooks & Co. Inc.)

Iowa

(Wednesday)

September 5

$300,000

Genung's Inc.

Chess

B stock

common

10:30

Dillon,

Electronic Research Associates, Inc.--Class A Com.

Coastal

(no par)
(par $1). Pro-

Attorney General

scheduled to be received up to 3:45 p.m.
13 at Room 654, 101 Indiana Ave., N. W.,

Common
Co.)

Atlantic

Under¬

A stock

Transmission Co., Ltd

Westcoast

Corp.

common

Gas & Electric
(Bids

(Monday)

Mich.

32,

Corp., New York

September 4
Louisville

(Hornblower <fc Weeks ancl Eastman Dillon, Union Securities

Walter

Detroit

CALENDAR

(Eastman

Celotex

Ave.,

General Aniline & Film

Baehe & Co.i 200,000 shares.'/'.

•

Harper

Jan. 14 filed 426,988 shares of

(Friday;

Guys. From Harrison, Inc.--Class A Common

Two

ton

Aug. 9

(letter of notification) 13,500 shares of common
(par $1). Price—At market. Proceeds—To pay a

the

Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc., and The First Bos¬

Corp. of America

(letter of notification) 30,000 shares of common

May 28

(715)

Under¬

writer—Equitable Securities Corp., Nashville, Tenn.

Bonds

Continued

page

The Commercial and Financial

Continued from page

Import Corp., Houston, Texas
notification) 100,000 shares of common
Htock. Price—At par (S3 per share). Proceeds—For in¬
ventory, working capital, etc.
Underwriter—Benjamin
Holy Land

ik Co., Houston, Tex.
Inc., Springfield, III.

Mann Fund,

Horace

100,000 shares of capital stock (par $1).
Proceeds—For investment. Distrib¬
and Divestment Manager—Horace Mann Investors,
filed

market.

Price—At
utor

la., of which Charles F. Martin is also
Office—216 E. Monroe St., Springfield, 111.

Inc., Des Moines,
President.
«

(8 29)
notification) $300,000 of 6s 4% convert¬
ible debentures due Sept. 1, 1967. Price—99% of princi¬
pal amount. Proceeds—To retire bank notes and to pur¬
chase equipment.
Office—505 Aero Drive, Shreveport,
La. Underwriters—Keith, Reed & Co., Inc., Dallas, Tex.:
Aetna Securities Corp., New York, N. Y.; and Roman
Hycalog, Inc.

Julv 24 (letter-of

Lauderdale, Fla.

& Johnson. Fort

International Duplex Corp., San Francisco, Calif.
Dec. 21. 1956 filed 500,000 shares of common stock (paT

Proceeds—To equip and
launderettes and for working cap¬

cent). Price—$1 per share.

one

«sstablish five

super

Underwriters—Names

ital.

supplied

amend¬

ment.

International

and

purchase 354,420 additional shares oi

warrants

stock

common

Investments, Inc.

Insurance

118,140 shares of common stock (par $1)

10 filed

June

units

offered

one

common

three warrants to buy three common shares.

/jhare and

Price—$3.75

per unit.
Each warrant entitles holder to
purchase one common share at $2.75 per share. Proceeds
—To acquire stock of fire insurance unit and for general
corporate purposes. Office — Englewood, Colo. Under¬
writer—American Underwriters, Inc., also of Englewood,

Colo.

Iowa Southern Utilities Co.

(8 20)

July 26 filed $5,000,000 of first mortgage bonds due Aug.
1,1987. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.

inc.; Kuhn. Loeb & Co.; White, Weld & Co.; Lehman
Brothers,

Bear, Stearns

Co.

(jointly); Equitable
(jointly);
The First Boston Corp.; Dean Witter & Co.
Bids—Ex¬
pected to be received up to noon (CDT) on Aug. 20. at
Northern Trust Co., 50 So. La Salle St., Chicago 90, 111.
and

Securities Corp. and Salomon Bros. & Hutzler

Isthmus

Steamship & Salvage Co., Miami, Fla.
(letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—To purchase a ship and for working capital. Under-.
writer—Anderson Cook Co., Inc., Palm Beach, Fla.

May 21

Janaf,

Washington,

inc.,

July 30 filed $10,000,000 of 5I2-8% sinking fund deben¬
tures due Aug. 1, 1972 and 100,000 shares of common
stock
and

to be offered in units of a $1,000
of stock, or a $100 debenture

(par 20 cents)

debenture and

10-shares

share of stock.

one

Price—Par for debenture,

plus

sh'are for each 10 shaves of Stock. Proceeds—For

per

construction of

shopping center and other capital im¬

provements: for retirement of present preferred shares;
and for

working capital, etc. Underwriter—None?

Jupiter Oils Ltd.
Aug. 5 (letter of notification) 100,000 shares of common
stock (par 15 cents).
Price—$3 per share. Proceeds—
To repay bank loans and for working capital. Business
—Oil and gas properties in Canada and United States.
Office—350 Fifth Ave., New York, N. Y.
None.
.

For

(letter of

Belleville,

Inc.,

III.

notification) 250,000 shares of

Price—At

stock.

Underwriter—

■/V Lourraine Coast,
Aug.
mon

($1

par

per

share).

com¬

Proceeds—

working capital and other general corporate
Office—-1121

poses.

East

St., Belleville,

111.

pur¬

Under¬

writer—None;

^Louisville Gas & Electric (9/4)
Aug. 8 filed $12,000,000 of first mortgage bonds, due
.Sept. 1, 1987.
Proceeds—To repay bank loans and for
construction program.

Underwriter—To be determined
Probable bidders; Halsey, StuInc.; Kuhn, Loeb & Co. and American Securi¬

by competitive bidding.
,

art & Co.
ties

Corp.

(jointly); Kidder, Peabody & Co. and Gold¬
Sachs & Co. (jointly).; Harriman Ripley & Co.
Inc.; Lehman Brothers and Blyth & Co.. Inc. (jointly);
The First Boston Corp.; Eastman Dillon, Union Securiman.

ties

Co.

•Scheduled

and
to

White.

Weld

received

Co.

10:30

(jointly). Bids—
a.m.
(CDT) on

Sept. 4.
Madison Improvement Corp., Madison, Wis.
July 29 filed 50,000 shares of common stock. Price—At
par ($10 per share). Proceeds—For working
capital, etc.

Underwriter—None.

Henry Behnke is President,

Mascot Mines. Inc., Kellogg, Idaho
June 3 (letter of notification)

800,000 shares of

otock.
—For

Price—At par

mining

common

share)! Proceeds
Office—Sidney Bldg'., Kellogg.

(m2

expenses.

Idaho, Malcolm C. Brown
Standard Securities Corp.,
Idaho.

cents

per

President.

Underwriter-

Spokane, Wash., and Kellogg

<•

McDermott (J. Ray) & Co., Inc.
July 18 filed $20,292,000 of 5% convertible subordinated
debentures due Aug. 1, 1972, being offered for subscrip¬
tion by common stockholders of record
Aug. 6, 1957 on
the

basis

shares
100%

$100

debentures

held; rights to expire
of

for

each

common

Aug. 20, 1957. Price—At

principal amount.. Proceeds—For

operations.

expansion of

Underwriters—Dominick <k Dominick
Kidder, Peabody & Co., both of New York.

Thursday, August 15,

195-

^ Nucleonics, Chemistry & Electronics Shares, |nc

Feb. 27 (letter of

June

Chronicle

and

Aug. 13 filed $7,500,000 of single investment and
monthly
investment plan certificates for accumulation of
shares
of

this

corporation.

Underwriter—The

First

Southern

Corp., Atlanta, Ga.
Oil

Ventures,

Inc.

May 13 (letter of notification) 2,500,000 shares of com¬
mon
stock.
Price—At par (10 cents per share). Pro¬
ceeds—For development of oil and gas properties.
Office
—725 Judge

Mid

Bldg.,- Salt Lake City, Utah. Underwriter—
Securities, Inc. of Utah, Salt Lake

America

City

1957

Inc.

Number 5664

186

Volume

Resource

The Commercial and Financial

Fund, Inc., New York

ares

hern

60 Broadway, New York, N. Y.

Co., Inc.,
.'om-

Productions, Culver City, Calif.

■

(9 10)

Pro-

filed 375,000 shares of common stock (par $1).
Price—$3 per share. Proceeds—For expansion of pro¬
duction of filmed television commercials and for working
capital. Business—Produces films for television, Under¬
writer4—S. D. Fuller &,Co., New York.

ffice

Aug; 8

ier—

City,

and

."RosofRecords,Inc.":» •*>»•":

July 22. (letter of

id in

■

ing capital.

imon

(with

oversubscription privilege);

Proceeds—To

repay

Underwriter

Securities Corp., New York.

;

Tax Exempt Bond Fund,
..

St. Louis Insurance Corp., St. Louis, Mo.

lares

ben-

tions
/able

Walt Disney

due

lined

Co.

ected

the

■

July 22 filed 1,000,000 shares of common stock (par $7)
1

purchase Scottsbluff Rendering Co. of Scottsbluff,

—None.

rican

•

iter—

Underwrriter

/;%/.'

Seminole Oil

Gas Corp., Tulsa,

(8/19)

Okla.

bidt Co.

New

Sire

Aug.
hares
its to

;

owns y

(8/27)

bonds,;series J,, due 1982. Proceeds—For construction
program. Underwriter—1To be determined by, competitive
bidding. Probable bidders: Halsev, Stuart & Co. Inc.;
The First Boston Corp. and Dean Witter & Co. (jointly);

•

29,400
'fered

Fla.

-year

for

(letter of riotification)

■

:y,

Wycotah Oil & Uranium, Inc., Denver,

each

1967)

outpurnder)ffer-

•

Investment Fund,

Steadman

olina

stock

Inc.

neral

of Fund

nder-

July 24.-

ftgage

•

tding.
First

lithers
a.m.

k $1)

oduc-

| nion stock j(par 25 eents).;

New

($10
and
Ihlem

[es &
New

production

-A-Trepac Corp. of America
Aug. 6 (letter of notification) 6,600 shares of capital
stock (par 25 cents).
Price—40 cents per share. Proceedsr—For working capital.
Office—One Engle Street,

Tripac Engineering Corp.

ment.

Office—70 East

45th

St., New York, N. Y.
derwriter—Kesselman & Co., Inc., New York.

Elmo

one

>eeds

and
in"

common., stock* unsubscribed shares to be offered
certain employees nod 4.offibers. Price—$2 per sh are.

ygden

Jroceedsr—To^>ay outstanding-obligations to Ogden Corp.
t
ndcrwr^ter^None..
rf

;

Truly Nolen Products,

(Republic of Panama)
July 24 filed 1,165,750 shares of common stock (par $2)
to be offered for
subscription by common stockholders
Ogden Corp. on the basis of one new share for each
tour shares held and to holders! of options on the basis
of one share for each
option to purchase four shares of
to

proprietary development.
Office — 4932 St.
Ave., Bethesda 14, Md.
Underwriter—Whitney &
and

Co., Inc., Washington, D.

Un¬

Inc.

shares of common
share. Proceeds—
For plant and laboratory expansion, advertising
and
working capital. Office—6721 N. E. 4th Ave., Miami, Fla.
Underwriter—Alfred D. Laurence & Co., Miami, Fla.

July 19 (letter of notification) 100,000
stock (par 50 cents). Price—$2 per

Syntex Corp.

pur-

(letter of notification) 100,000 shares of class A
stock (par 10 cents).
Price—$1.50 per share.
Proceeds—For working capital; machine tools; equipment

•

Two

Guys From

Harrison, Inc.

(8/16-19)

of class A common stock (par
10 cents). Price—$9 per share. Proceeds—For expansion
and working capital. Office—Newark, N. J. Underwriter
—Bache & Co., New Yrork.
«
.
■
July 25 filed 200,000 shares

pharmaceutical

seD
spin-off by

reported company plans to issue and

subsidiaries.,

Incorporated, Akron, O.
public¬
ly $2,250,000 of 15-year 6% debentures (with common
stock warrants).
Proceeds—Together with funds from
private sale of 425,000 shares of common stock at $4 per
share to pay part of cost of purchase of an operating car¬
rier truck line. Underwriter—Fulton, Reid & Co., Inc./
All States Freight,

June 21 it

was

announced company plans to offer

Cleveland, Ohio.

March 18 it
<ell

was

announced company plans to issue and

15,000 shares

cumulative convertible pre¬
$20). Underwriters—Emch
Co., both of Milwaukee, Wis.

of $1.20

ferred stock series A (par
'

Co. arid The Marshall
-

American Telephone *

Telegraph Co.

(10/29)

July 17 it was announced that company plans to issue
and sell $250,000,000 of debentures to be dated Nov. 1,
1957 and to mature on Nov. 1, 1983.: Proceeds—For im¬
provement and expansion of system-. Underwriter—To
be determined by competitive bidding. Probable bidders:

Boston Corp. and Hal¬
(jointly). ;Bids—Expected to be

Morgan Stanley & Co.; The First

Stuart & Co. Inc.
opened on Oct. 29.

common

new

Inc.

was

sey,

Underwriter—None.

Feb. 27

;

Aluminum Specialty Co.

None.

Strato-Missiles,lnc.
June 7 (letter of notification) 300,000 shares of common
stock (par 10 cents); Price—$1 per share. Proceeds—To
develop Hatfield propulsion system, and other projects;
'or purchase of additional facilities and for working
capital.;. Business—To produce machinery and equip¬

distribution

Land-Air, Inc. and Air Carrier Service Corp. into Air¬
craft,. Inc., a new company.- Underwriter—Cruttenden^
Podesta & Co., Chicago, 111.

^ Town A Country Insurance Co.
(letter of notification) 7,500 shares of common
stock
(par $10). Price—$20 per share.
Proceeds—To
establish and operate the business of automobile insur¬
ance
including public liability, medical, etc. Office—
716 West Grand, Oklahoma City, Okla.
Underwriter—

Englewood, N. J.

shares of preferred
Proceeds—For

Price—$10 per share.

to $12,500,000 common stock, following
California
Eastern Aviation, Inc. of its

July 22

Price—$1.50 per share. Pro-

and

Wayne Jewell Co., Denver, Colo.

of "films,/ working capital, etc.
Office—113 West 57th St., New York. Underwriter —
Joseph Mandell Co., New York.,

I feeds—For

Tele-

lumu-

Stratford (John G.) Film Corp.
(9/3-6)
June 27 /(letter of notification>>199,999 shares of com-

and
share,

July 9 it

Inc.

Titanic Oil Co.

Steel

Inc.

Prospective Offerings
Aircraft,

May 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For exploration of oil properties. Office — 704
First National Bank Bldg., Denver, Colo. Underwriter—

■>

improvement & forge Co. (8/27)
Aug. 6 filed 86,709 shares of common stock (par $1), of
which 60,000 shares are to be sold for account of com¬
pany and 26,709 shares for selling stockholders. PriceTo be, supplied by amendment; Proceeds—For capital
expenditures, payment, 'pfdebtfofsubsidiary and for
working capital. Underwriter—Fulton, Reid & Co., Inc.,
Cleveland,, Ohio..i- y f •
;

loans,

eben-

/r'w;

(letter

products; for research of new drugs, purchase of addi¬
tional equipment and working capital.
Office—415 "W*.
Pershing Road, Chicago, 111.
Underwriter—None.

and McDonald & Co., Cleve¬

None.

Fortune, Inc., Fortune II, Inc., Fortune III,

Inc. and Fortune IV, Inc. Underwriter — William Allen
Steadman & Co;, East Orange, N. J. Statement effective

(par $7.50).

manufacture

notification) 1,500 shares of voting
common
stock
(par $10)
and 6,000 shares of non¬
voting class B common stock (par $10). Price—$12.50
per share.
Proceeds—To lease property and for inven¬
tory, etc. Business—To purchase and sell merchandise.
Office—313 Market St., Camden, N. J.
Underwriter—
Aug.

May 10 filed 100,000 shares of common stock (par $1)
to be offered in connection with merger into this Fund

-ice—

^ Xttrium Laboratories,

Aug. 1 (letter of notification) 20,000

land, Ohio.
Thrift Buyers,

Colo.

shortly after Labor Day.
>

being

Barney & Co., New York.;

•

•'

erty and for other corporate purposes. Underwriter —
Teden & Co., Inc., New York.
Offering — Expected

offered for subscription by
stockholders in the ratio of $100 of debentures
14 shares of stock held of record on Aug. 12,

Aug.

July 29 filed 375,000 shares of common stock (par $1).
Price—$4 per share. Proceeds—For acquisition of prop¬

1957; rights to expire on Aug. 27, 1957. Price—100% of
principal amount. Proceeds — For working capital and
other general corporate purposes. Underwriters—Smith,

Inc.
July 29.(letter of notification) 1,000 shares of 6% pre¬
ferred stock and 4,000 shares of common stock (no par).
Price—Of preferred stock, at par ($100 per share); and
of common stock, $25 per share., Proceeds—For expan¬
sion and working capital.
Office—934 N. E. 25th Ave.,
Portland 8, Ore.
Underwriter—None.

hares

Inc.

July 26 (letter of notification) 4,300 shares of common
(par $10) to be offered in units of 50 shares per
unit.
Price—$500 per unit. Proceeds—For purchase of
oil properties and working capital.
Office—674 Dexter
Horton Bldg., Seattle, Wash.
Underwriter—None. 4 ; . -

it Stanley Drug Products,

stock

Address—P. O. Box 6,

Underwriter—None.

Ark.

stock

Thompson Products, Inc.

until

—

...

6% cumula¬
per share).
existing indebtedness; for equipment

and additional service facilities.
El kins,

July 24 filed $19,729,500 of 47/s% subordinated deben¬
tures due Aug. 1, 1982 (convertible into common stock

Fla.
150,000 shares of com¬
mon stock (par $1).
Price—$2 per share. Proceeds—To
be added to the general funds of the company. Under¬
writer
Pierce, Carrison, Wulbern, Inc., Jacksonville,
25

Proceeds—To pay

Campbell Investment

Hopwood, Minneapolis, Minn.

Southern industrial Corp., Jacksonville,

June

Underwriter—East
York.

pipeline.

Dillon, Union Securities & Co., New

* White Rivor Telephone Co.
July 30 (letter of notification) 215 shares of
tive preferred stock.
Price—At par ($100

★Texota Oil Co., Denver, Colo. (8/28)
Aug. 7 filed $650,000 of convertible debentures due
Aug. 1, 1967. Price — To be supplied by amendment.
Proceeds—To repay bank loans and for drilling of wells,
acquisition of new properties and payment of rentals
on oil and
ga? leases. Underwriter — Piper, Jaffray &

common

Fla.

Underwriter—T.

capital.

ing

Blyth & Co., Inc.; Kuhn, Loeb & Co. Bids—Expected to
be received up to 8:30 a.m. (PDT) on Aug. 27.

nder-

ceeds—For construction of
man

May 28 filed 2,116,292 shares of common stock (par $1).
Price—$2 per share. Proceeds—For expansion and work¬

Aug. 5 filed $40,000,000 of first and refunding mortgage

iter—

series C. due April 1, 1988 (convertible until July-' 15^
1978).' Price — To be supplied by amendment. Pro¬

„

Manufacturing Corp., Houston, Tex.

Co., Inc., Houston, Texas.

Southern California Edison Co.

Pro-

Texas Glass

Plan, lnc., New York

July ;18 filed $4,000,000 of nine-month 8% funding notes.
Price—At par .(in denominations of $100 each). Proceeds
—For working capital and other corporate purposes.
Underwriter—Sire Plan Portfolios, Inc., New York.

Brothers and Kidder„
V V- ;
• Walter (Jim) Corp., Tampa, Fla. (8/19-23) ' 1 . /
July 22 filed $1,250,000 of 9% subordinated bonds duo
Dec. 31, 2000, and 50,000 shares of common stock /(par
50 cents) to be offered in units of $25 principal afnourit
of bonds and one share of stock.' Price—$48.50 per unit.
Proceeds—For working capital.
Business—Construction,
of "shell" homes. Underwriters—Carl M. Loeb, Rhoades*
& Co., New York; and Prescott, Shepard & Co., Inc.*

it Williston Co.,

(letter-of notification) 275,000 shares of com¬
mon stock
(par five cents). Price—75 cents per share.
Proceeds — For development of oil and gas properties.
Underwriter—Albert & Co., ■/.Inc., New York, N. Y.
June

Portland, Ore., is President.

Productions ; (8/28)

Sachs & Co., Lehman
Peabody & Co., all of New York.

being offered in exchange, on a share-for-share basis,
for capital stock of La Gloria Oil & Gas Co. of Corpus
Christi, Tex. The offer was conditioned upon deposit of
at least 81% (810,000 shares) of outstanding La Gloria
stock prior to Sept. 6, 1957, and it was announced on
Aug. 8 that in excess of this amount had been deposited.
Offer may be extended from time to time but not be¬
yond Dec. 5, 1957. Underwriter—None. Statement ef¬
fective Aug. 6.

Neb., and for construction; and equipment.

Aug.

share of

acceptance
on

—To

stock (par 10

be supplied by amendment.
Proceeds—To repay 'A
indebtedness, for acquisition and exploration of oil and
Cleveland, Ohio.
J/'--'-v'
gas leases, for dialling and completion of wells, and for
it Westcoast Transmission Co., Ltd. (9/4)1
> ■ v
other corporate purposes.
Underwriter—None. / S
;>
Aug; -13' filed $25,000,000 of * subordinated debentures
• Texas
Eastern Transmission Corp.
; •

+ Scottsbluff Packing Co., Scottsbluff, Neb.
July 30 (letter of notification) $265,000 of 6% 10-year
debentures in' Varying amounts. .Price—At par. Proceeds

and

upon

•'

Goldman,

Inc., Washington, D. C,

June 20 filed 40,00* shares of common stock. Price—$25
Vper share. .'Proceeds — For investment. Underwriter—

Sept. 26, unless extended.. Exchange Agent—First Na¬
tional BankTrust-Co], Helena, Mont.
■■■}.. / /

thers
.

The offer is condiitoned

by holders of not less than; 240,000 shares (80%) of
outstanding Western stock. • This offer will expire

Stui

rate, of 1.39 shares uf SU.JPaul stock for each
Western stock.

1 for

•

$2.50).'

—To

;jv'

bank loans and for
V Aug. 6 filed. 400,000 shares of common stock (par'
Stone & Webster
Price — To be supplied by amendment. Proceeds — To
" v
!
• • >
Atlas Corp., the
selling stockholder. Underwriters—

•

Ave.,

—

;1,250 shares of class C cumulative pre-'
ferred stock (par $57). • Price—$97 per share. :;Proceed* fv Equitable Securities Corp., Nashville, Tenn.
'
Texam Oil Corp., $*tt Antonio, Texas
—To R. M. Realty Co., who is the selling stockholder;
Underwriter-r Yates, .Heitner & Woods, St. Louis, Mo. ^ May 29 filed 300,000 shares of common stock (par $1),
to.be offered for subscription by common Stockholders
\ r St. Paul fire ft'k^orimi Insurance Co.
on a basis of two new shares for each share held. Price
June 25 filed 417,000 shares of capital stock (par $6.25)
March 27 filed

;par

•

America, Portland, Ore.

April 30 filed 1,250,000 shares of common

Sept. 23, 1957./Price—To be supplied

construction program.

Office-r-703 South.'Husband St., Stillwater,

Stillwater, Okla,;/
/

Uranium Corp. of

bert Griswold of

Underwriter—Richard. B. Burns Securities Agency,

Okla^

Kidder, Peabody & Co., New York.

cents). Price—To be supplied by amendment, (expected
to be $1 per share). Proceeds—For exploration purposes*..
Underwriter—To be named by amendment. Graham Al¬

rights to expire
by amendment.

stock. Price—At par .($1 per share). Proceeds—For work¬

pital

;
;

1957, at the rate of one new share for
each six shares held; rights to expire on Sept. 13, 1957.
Price—To be supplied by amendment.
Proceeds—For
investments
in
subsidiary companies.
Underwriter—

of record Aug. 28,

each 10 shares held

common

ares,

(8/29)

Tampa Electric Co. (9/5)
Aug. 2 filed 217,286 shares of common stock (par $7)
to be offered for subscription by common stockholders
of record Sept. 4, 1957 at the rate of one new share for

..-1/ ;-.v'

, :

notification) .11,022 shares of

Utilities, Inc.

Aug. 9 filed 312,506 shares of common stock (par $10)
to be offered for subscription by common stockholders

Securities Corp.; Goldman Sachs & Co.; Merrill Lynch,
Pierce, Fenner & Beane; Kuhn, Loeb & Co. Bids—To be
received at 90 Broad St., New York, N. Y., up to 11 a.m.
(EDT) on Sept. 5.
'• '•

(Hal)

Roach

* United

Tampa Electric Co. (9 5)
Aug. 2 tiled §18,000,000 of tirst mortgage bonds due July
1, 1987. Proceeds—To repay bank loans. Underwriter—
To
be determined
by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Stone & Webster

March 29 filed 100,000 shares of common stock (par $1).
Price—At market.
Proceeds—For investment.
Under¬
writer—None. D. John Heyman of New York is Presi¬
dent. Investment Advisor—Resource Fund Management

thly

(717)

Chronicle

Atlantic City Electric Co.

April 9, Bayard L. England, President, announced tha*
later this year the company will probably issue about

debentures. Proceeds-rFor con- •
struction program. Underwriter—May be determined by
competitive bidding. Probable bidders: Iialsey, Stuart Ss
Co. Inc.; Kuhn, Loeb & Co., American Securities Corp. .
and Wood, Struthers & Co. (jointly); White, Weld & Co,
and Shields & Co. (jointly); The First Boston Corp. and ,
Drexel & Co. (jointly); Eastman Dillon, Union Securi¬
ties & Co. and Smith, Barney & Co. (jointly); Lee Hig•
ginson Corp.; Blyth & Co., Inc.
$5,000,000 of convertible

Byers (A. M.) Co.
May 7 stockholders approved a
class of 100,000 shares of

new

stock

(par $100)

proposal to authorize a

cumulative preferenceand to increase the authorized outContinued on page 42
'

The

(718)

Continued

from

page

standing indebtedness to $15,000,000, in connection with
its proposed recapitalization plan. There are no specific
objectives involved. Control—Acquired by General Tire
& Rubber Co. in 1956. Underwriter—Dillon, Read & Co.,
Inc., New York, handled previous preferred stock financ¬
ing, while Kidder, Peabody & Co. underwrote General
Tire & Rubber Co. financing.

announced

was

the

Proceeds—To

company

expects to

sell

140,000 shares of cumulative preferred stock (par $50)
September. Proceeds—To retire short-term bank

in late

loans. Underwriters—Kidder, Peabody & Co. and Merrill

lir California Oregon Power Co.
Aug. 13 company applied to the California P. U. Com¬
mission for authority to issue and sell $10,000,000 of first
1987. Proceeds—To repay
bank loans. Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Shields & Co.; Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co. (jointly); Blyth & Co., Inc.
and The First Boston Corf), (jointly); White, Weld & Co.
bonds due

Oct.

^ California Oregon Power Co.
Aug. 13 it was anounced company has applied to the
California P. U. Commission for permission to issue and
sell 200,000 shares of common stock (par $20). Proceeds—
To repay bank loans and for construction program. Un¬
derwriters—Blyth & Co,, Inc. and The First Boston Corp.,
both of New York.

Central Hudson Gas & Electric Corp.

June

v Central Illinois Public Service Co.
April 9 it was reported company plans to issue and sell
$10,000,000 of 1st mtge. bonds.Proceeds—To reduce bank
loans and for construction program. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Equitable Securities Corp.; Eastman Dillon, Union Secu¬
rities & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co.;
and Merrill Lynch, Pierce, Fenner & Beane (jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly).
Offering—Expected late in 1957.

Central Louisiana Electric Co., Inc.
was announced company plans to issue and
sell late this year $6,000,000 of first mortgage bonds.

April 8 it

about

Together with $4,500,000 of 4%% 12-year
placed privately, to be used to
repay bank loans and for construction program.
Un¬
derwriters—Kidder, Peabody & Co. and White, Weld &
Co. about the middle of last year arranged the private
placement of an issue of $5,000,000 series G first mort¬
gage bonds.
debentures

—

bonds due 1972 and 350,000 shares of common stock. Each

$10 of bonds will

carry a warrant to

stock.

common

Underwriter

—

purchase one share
Van Alstyne, Noel &

Co., New York.

Chesapeake & Potomac Telephone Co. of Md.
July 30 it was announced company plans to issue and
sell $30,000,000 of debentures.
Proceeds—To repay ad¬
from American Telephone & Telegraph
Co., the
parent. Underwriter—To be determined by competitive

vances

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Morgan Stanley & Co.; Kuhn, Loeb
<& Co.; The First Boston
Corp.; Harriman Ripley & Co.
Inc. Offering — Expected late November or
early De¬
cember.

it City Investing Co., New York
July 30, Robert W. Dowling, President, announced that
the directors are giving consideration to the
possible

program.

Underwriter

issuance

debentures

which

could

well

those with growth

used

potentials.

Cleveland Electric

Illuminating Co.
reported company plans to issue and sell
$25,000,000 of first mortgage bonds. Proceeds—To

Nov. 12 it

was

repay

bank loans and for construction
program. Underwriter—
To be determined by
competitive

bidding.

Probable
First Boston

bidders:

Halsey, Stuart & Co. Inc.; The
Corp.; Blyth & Co., Inc.; Dillon, Read & Co. Inc.; Blair
& Co. Inc., and Baxter, Williams & Co.
(jointly); Glore.
Forgan & Co.; White, Weld & Co.
Coastal

Expected to t>e received on Sept. 30.

Corp.

July 1 it was reported the company plans to offer publiely about 191,000 units of securities for about
$20,000,000 (each unit expected to consist of a
$25 debenture or
$35 interim note and five shares of $1 par common
stock). Proceeds—Together with other funds, for con-

structionjprogram. Underwriters—Lehman
Allen & Co.. both of New York.

Columbia Gas

Brothers and

1957

Pro¬

ceeds—To

help finance 1957 construction program which
is expected to cost
approximately $84,000,000. Under¬

writer—To be determined by
competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley
& Co.; Merrill Lynch, Pierce, Fenner
& Beane and

Bids—Expected

to be

re¬

'A:'" A'A''

land,-MeA..

lesi
thii

Fall

upon

;v:

do/22)

Houston
Feb.

market conditions. Proceeds-r-FoJ
construction program.
Underwriter — Putnam & Co.,,
Hartford, Conn.; Chas. W. Scranton & Co., New Haven,
Conn.; and Estabrook & Co., Boston, Mass.
Consolidated Edison Co. of New York, Inc.

;A :A.A'

';:J..""

Lighting & Power Co. V

13 it was reported -company may offer, late this
approximately $25,000,000 first mortgage bonds, but

exact amount,

timing, etc. has not yet been determined.

Underwriterr-To be-determined by competitive bidding.

Halsey, Stuart & Co. Inc.; Equitable
Lehman Brothers, Eastman Dillon,

Probable bidders:

Securities

Co.

Securities

Union

Corp.;

find' Salomon

Bros. & Hutzler

Charles B. Delafield, Financial Vice-President, on July 8
announced that the company has tentatively decided tc

(jointiy)j Lazard Freres & CoA and Blyth & Co., Inc.
(jointly);Kidder, Peabody & Co.
■
' '

$50,000,000 of first and refunding mortgage
(probably with a 30-year maturity). This may
be increased to $60,000,000, depending upon market con¬
ditions.
Proceeds—From this issue and bank loans, to

May 16 it was reported company plans to issue and sell
around 200,000 to 225,000 shares of common stock in the
Fall in addition to between $10,000,000 to $15,000,000

Idaho

issue and sell

bonds

pay

part of the cost of the company's 1957 construction
which is expected to total about $146,000,000
competitive bidding
bidders:

Halsey,

Stuart

Co.

Inc.;

(1) For bonds—Halsey^ Stuart & Co. Inc.; Salomon Bros.
Hutzler and Eastman Dillon, Union Securities & Co.

Morgan

Stanley & Co.; The First Boston Corp. Bids—Tentatively
scheduled to be received up to 11 a.m. (EDT) on Oct. 22
Consolidated

Natural

Gas

Co.

Co. Inc., Lazard Freres & Co. and
(jointly); Kidder,, Peabody &
White, Weld & Co. (jointly); Equitable Securities Corp. (2) For stock—Kidder, Peabody & Co.; Blyth
Co.. Inc., and Lazard Freres & Co. (jointly).
(jointly); Blyth &

The

pected to be received up to 11:30 a.m. (EDT) on Sept. 17

program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

(9/23)

July 9 it was announced company plans to issue and sell
$35,000,000 of first mortgage bonds due 1987. Proceeds
—To repay ban}£ loans and for construction program
Underwriter—To be determined by competitive bidding
and Shields &

White, Weic
(jointly); Morgan Stanley &

Co.

Co.; The First Boston Corp. and Harriman Ripley & Co
(jointly). Bids—Expected to be received up to 11:30
a.m. (EDT) on Sept. 23.
Inc.

Consumers Power Co.

(10/16)

announced that the company plans, in addi¬
tion to the bond financing, to offer to its common stock¬
holders the right to subscribe for $35,156,760 convertible
debentures maturing not earlier than Sept. 1, 1972, or
the basis of $100 of debentures for each 25 shares ol
stock held.
Proceeds—For construction program.
Un¬
derwriter—To be determined by competitive bidding
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co. and Shields & Co (jointly); Morgan Stanley &
Co.; The First Boston Corp. and Harriman Ripley & Co.
Inc. (jointly); Ladenburg, Thalman & Co. Bids—Expect¬
ed to be received up to noon (EDT) on Oct. 16.
July 9 it

was

Cook Electric Co.

July 15 it was reported that company is planning some
equity financing. Underwriter—Probably Blunt Ellis &
Simmons, Chicago, 111.
Eastern Gas & Fuel Associates

Inc.; ^Hatfiman Rjpley & Cov Inc.; The First Boston
Corp.; Eastman Dillon, Union Securities & Co. Bids—
Tentatively expected to be received, up to; 11 a.m. (EST)
on Dec". 10. A.
V :.A
-■
•,
.

Jefferson

Eastern Utilities Associates

April 15 it was announced company proposes to issue
and sell $3,750,000 of"25-y6ar collateral trust bonds
—
For advances to Blackstone Valley Gas &
Co., a subsidiary. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc.; White, Weld & Co.; Stone & Webster Se¬
curities Corp. and Estabrook & Co. (jointly).

debentures.

announced company plans to file a regis¬
statement with the SEC covering the proposed
was

sale

and

stock
on

shares held1.

the

offered

basis

88,761 additional shares
for

subscription by

stock¬

one
new
share for each four
Price—To be supplied by amendment. Pro¬

ceeds—For working

capital and general corporate pur¬
poses. Underwriter—Morgan Stanley & Co., New York.
Offering—Expected in late August or early September.
•

General Tire & Rubber Co.

Aug. 6 it
an

issue

bentures

was

(9/17)

reported that this company is considering
$12,000,000 convertible subordinated de¬

(with stock purchase warrants

Proceeds—For expansion program.

Long ls>^iid Mshtlng Co.
April 16 it was announced company plans to sell later
this year $40,000,000 of rist mortgage bonds, series J.
Proceeds—To refund $12,000,000 of series C bonds due
Jan. 1, 1958 and for construction program. Underwriter
—To

determined by competitive bidding. Probable
Halsey, Stuart & Co. Inc.; The First Boston
Corp. and Blyth 8c Co. Inc. (jointly); W. C: Langley &
Co. and Smith,''Barney & Co. (jointly).
bidders:

Louisville
Bids

Nashville

attached).

Pro¬

RR.

expected to be received by the company some
time in the Fall for the purchase from it of $14,400,000
of equipment trust certificates. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
are

Mangel Stores Corp.
19 it was reported early registration statement is
of an issue of $3,000,000 of convertible de¬
bentures due 1972.
Underwriter—Lee Higginson Corp.,

June

expected

York.

Middle South

Utilities, Inc.

May 8 it was announced company may consider an offer¬
ing of new common stock within the next year or so.

$19,000,000, for investment in common
of the System operating companies during the
three-year period 1957, 1958 and 1959.
Underwriter-Previous stock Offering was to stockholders, without
underwriting, with oversubscription privileges.
Proceeds—About

stocks

Molybdenum Coirp. of America
July

common

was

announced

stockholders

the

196,851 additional shares of
warrants to

basis

purchase

one

new

an.

plans to offer its
subscribe for about

company

right

common

stock (par $1), P*us

additional 196,581 shares, on

common

and

one

the

warrant for

The holders of record
day following the effective pate
registration with the SEC. Proceeds—For expansion
program.
Office—Grant Bldg., Pittsburgh. Pa. rudereach

seven

date

Employers Group Associates

holders

Sulphur Co.

27, 1956; Eugene H. Walte, Jr., announced company
plans in the.; n^ai: future to sell an issue of convertible

Proceeds

tration

Lake

Dec.

New

April 3 it was announced company may need additional
capital of between $25,000,000 and $35,000,000 during the
next two years. Underwriter—For any bonds to be de¬
termined
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White, Welc
& Co., and Kidder, Peabody & Co. (jointly).

July 1 it

Corp.

• Indiana
& Michigan Electric Co.
(12/10)
May 20 it was reported company plans to issue and sell
$20,000,000 of .first mortgage bonds due 1937. Proceeds
—For reduction - of bank loans and for construction

Halsey, Stuart & Co. Inc.; White, Weld 8c Co. and Paine
Webber, Jackson and Curtis (jointly); Morgan, Stanley
& Co. and the First Boston Corp. (jointly.
Bids—Ex¬

Co.

First .Boston

Co. and

(9/17)

July 22 it was announced company plans to issue and sell
$30,000,000 debentures due 1982. Underwriter—To be de¬
termined by competitive bidding.
Probable bidders

Consumer Power Co.

after Nov. 1. Underwriter—To be
competitive bidding, probable bidders:

determined by

Underwriter—To be determined by
Probable

Co.

Power

first mortgage bonds

program

capital

June 6, company announced that it
plans the issuance
and sale of $25,000,000 debentures later in

ceived on Oct. 3.

Underwriter—Probably H. M. Payson & Co., Port¬

Hathaway

June 24 it was

Co.

Feb. 18, it was reported company plans to sell not
than $20,000,000 of first mortgage bonds, possibly

issuance

System, Inc. (10/3)

White, Weld & Co. (jointly).

its

(C. F.) Co., Waterville, Me.
announced company plans: soon to offer
common stockholders
some additional common

stock.

Electric

Transmission

(jointly); Stone

Corp.; Lee Higginson Corp. Bids^

& Webster Securities

Connecticut Light & Power

Fall, depending

Allyn & Co. Inc.

& Co. and A. C.

Loeb

—

First Boston
(2) For any
bonds,
to
be
determined
by competitive
bidding.
Probably bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Glore, Forgan & Co. Bids — Expected to
be received on Oct.

(9/30)

Co.

Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner and Beane and White,
Weld 8c Co. (jointly); Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co. (jointly); Kuhn,

(1) For any preferred stock, may be The
Corp. and Glore, Forgan & Co. (jointly).

largely 4o acquire investments producing Ordinary in¬
as

construction

For

& Beane.

bidding.

stated that it plans to offer $25,000,000
of new securities (kind not yet deter¬
common stock financing is contemplated.

Proceeds

construction

gram.

$50,000,000

mined);

For

5 it was announced company plans to issue and
sell $17,000,000 first
mortgage bonds due 1987. Pro¬
ceeds—To repay bank loans and for construction pro¬

(10/8)

Co.

—

Loeb, Rhoades &

Aug.

June 25 company

reported company plans

was

early registra¬
tion of $3,500,000 of 5Vz% collateral trust sinking fund

come

Edison

Proceeds

Utilities

States

Gulf

for other corporate purposes. The majoi
portion will consist of first mortgage bonds which woulc
be placed privately, and the remainder will include de¬
bentures and common stock (attached or in units). Un¬
derwriter—Lehman Brothers, New York.
Commonwealth

determined.

been

yet

program.
Underwriters—Carl M.
and Merrill Lynch, Pierce, Fenner

company

Probable bidders: Halsey, Stuart & Co. Inc.;

Chesapeake Industries, Inc.
June 3 it

future

this

reported

was

—

convertible

York.

Refining Co.

plans to raist
$64,000,000 to finance construction on a proposec
it

Interstate Gas Co.

May 3 U was Announced company plans to issue some
additional first mortgage bonds, the amount of which has
not

Commerce Oil

was

sell this year,

Proceeds

Under¬

loans.

bank

term

Underwriter—Kidder, PeaRegistration—Expected laie in

Gulf

announced company plans to issue and
probably in the fall, approximately $7,500,000 of sinking fund debentures. Proceeds—To finance
construction program.
Underwriter—Probably Kidder,
Peabody & Co,, New York.
April 22 it

short

writer—Dillon, Read & Co. Inc., New

Lynch, Pierce, Fenner & Beane, both of New York.

mortgage

reduce

August,

refinery and

^ California Electric Power Co.
Aug. 9 it

stock.

preferred

publicl)
cumula¬
Price—To be determined later

'New rorx.

6c bo.,

boay

July 22 company announced it is planning to sell
in October an issue of $8,000,000 par amount of
tive

1957

ceeds—For working capital.

Electric Co.

Columbus & Southern Ohio

Financial Chronicle .-.•.Thursday, August 15,

Commercial and

will be the, fifth

shares, presently held.

writer—None.

Montana Power Co.
may issue and sell in
$20,000,000 of debt securities. Proceeds—

May 20 it was'reported company
the fall about
For

construction

program
and to
Underwriter—To be determined by

reduce bank
competitive bidding

Halsey, Stuart* & Co. Inc.; Eastma
Dillon, Union Securities & Co.; White, Weld & Co.; Km;
der, Peabody & Co.; Smith, Barney & Co., and Blyth «
Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner «
Probable

Beane

bidders:

and

Stone

Webster

Securities

Corp.

(joinuyp

186

Volume

Number 5664

The Commercial

and Financial Chronicle

National Cylinder Gas Co.

Pennsylvania

Aug.

12 it was announced company plans to offer pub¬

licly

$17,500,000 of 20-year convertible subordinated de¬

tails of which have not yet

Fenner

Permian

Co.; Lowell Electric Light Corp.; Lawrence Electric Co.;
Haverhill Electric Co. and Amesbury Electric Light Co.,

May

Marrimack-Essexf Electric Co.
.

Underwriter—May be determined by- competitive

bid¬

ding. Probable bidders: Halsey, Stuart & do. Inc.; Kuhn,
Loeb &? Company ;• i Salomon Bros. & Hutzler; Eastman

New

A*1/

(9/11)?

Jersey Bell Telephone Co.

Pipe Line Co.

Philadelphia Electric Co.
July 22 it

(par

* ?'•

;«•: v *

y:,r

*/,«?;'.>-

?•

i/•

.0H• '«

Niagara) Mohawk Power Corp;

April 22, it:

was

Union Securities <&
received
'

and'sell

issue

(9/18)^^^^L&

July

•

decision, has been made

posed financing, but
sale of
mon

stock

common

stock.

no
or

was

announced

was

approving

company

common

plans to issue and
stock. Underwriter

Angeles, Calif.

was

rities

on Sept. 30 will
offering to stockholders of approxi¬

expansion and to reduce bank loans.
man

Underwriter—Leh¬

sell about

$7,000,000 of first mortgage bonds and about

$5,000,000

common

bidding.

Probable

Wisconsin

program

Southern Union Gas Co.

Southwestern Bell Telephone Co.

received

the

wake

developments.

of course, that by and
large, what is happening now had
been foreshadowed for

some

commercial
Federal

time.

bank
Reserve

Systemt's Charge to member banks
for rediscounting had been lagging
behind the parade in the money
as

whole.

'
.

The real

test for the

new

capi¬

Oct.

present

ing of

(10/1)

readjustments
in
the tal market looms in the weeks
Jnoney market seem, at this point,- ahead, when
industry
will
be
to
have
been
pretty well dis¬ seeking large chunks of money
counted as far as the investment to finance expansion and improve¬
fixed term securL;

way

ket

seems

Without

having

coasting

mar¬

along

experienced

any

outpour¬

Underwriters—(1)

be determined

matter of fact the seasoned

appears

interest.

to be attracting
People, however,

not
doing much more than
"watching" for the present, being
inclined
to
glance
at
what
is
ahead.
This,
observers
say,
is

are

enough to forestall any real rush
of buying at the moment.

the situation is com¬

slow, but the forward
calendar is steadily building up,
and unless there is a change in

its

Getting Away Early
At last two

wire

after

the

Labor

the

Day

market

holiday,

paratively

Refining

Co.,

through

Southern

for

improvement

acquisition

of certain new

facilities.
On

the

million

$170

same

Pacific Tele¬

day

debentures

carrying

23-years.

unusual

raising

On Aug. 28,

Co.

made.
The Following
a

Week

little further ahead,

calendar shows

week, the

three utility com¬

the

El Paso Natural Gas

will, if there is no change in

preferred stock. The

first

lion

day

before,

California

Southern
has

Co.

Edison

of con¬

$10 mil¬

debentures and

million

$40

bonds due up for bids.
On

28,

Aug.

Electric

Gas

Service

Public
Co.

slated

open

Looking

plans, market $60 million

American Tel.

parent firm, for advances

issues

new

market.

vertible

phone & Telegraph Co. is sched¬
uled to open bids for $90 million

8c Tel.,

Co., Inc.

panies scheduled to put a total of

proceeds to pay off $81 million in
bank loans and for the
and

Gas

It will use the

sale next Tuesday.

that is to the following

fortnight hence.
Atlantic

debentures

the money to repay

large potential bor¬
to get under the
the rush which
is

decided

before

Wisconsin

is slated to put $100
30-year
convertible,

bankers,

million

maturity,

rowers

July 8 it was reported company plans to offer up to
$300,000 of additional common stock to its stockholders.
Underwriter—The Milwaukee Co., Milwaukee, Wis.

subordinated

ments:

Currently

At any rate the
secondary

the

issues will get under

in volume shortly.

market
more

indications,

expected

tlGs, is concerned.

bonds,

tember; and of stock in August.

new

Latest

]narket, that' is

Proceeds — For construction

stock.

and to repay bank loans.

—

is,

market

plans to issue and

by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co.; The First Boston Corp.; Merrill Lynch,
Pierce, Fenner & Beane; Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co. (jointly); Dean
Witter & Co.; Lehman Brothers; White, Weld & Co., (2)
For any common stock (first to stockholders on a 1-for10 basis): The First Boston Corp., Merrill Lynch, Pierce,
Fenner & Beane, Robert W. Baird & Co. and William
Blair & Co. (jointly).
Registration—Of bonds in Sep¬

For

May 16 it was reported company plans to issue and sell
about $10,000,000 of debentures this summer. Proceeds—
For construction program.
Underwriter—May be Blair
& Co. Incorporated, New York.

the

Service Co.

Halsey, Stuart & Co. Inc.; The First Boston Corp. and
Lehman Brothers
(jointly); Kidder, Peabody & Co.;
Eastman Dillon, Union Securities & Co. Bids—Not ex¬

Nov. 19

prime

Public

bidders:

by competitive

pected to be received up to 11 a.m.

and

plans to sell an issue

than $5,000,000

determined

Inc.; Kuhn, Loeb & Co.; Lehman Brothers.,/ Bids—Ex¬

rate

6 it was reported company

May 29 it was announced company

May 24 directors approved the issuance of $100,000,000
new
debentures.
Proceeds
For expansion program.
Underwriter—To
be
determined by competitive
bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co. Bids — Tentatively expected to

The

Walworth Co.

both of New York.

pected to be received until next Fall.

unsettlement

Dillon, Union Secu¬

Co.; Stone & Webster Securities Corp.; White,
Co. Bids—Expected to be received on.Dec. 3.

reported company plans to issue and sell
$10,000,000 of first mortgage bonds. Underwriter—To be
was

plans to

newest

announced company plans to sell $20,-

was

convertible subordinated deben¬
tures.
Proceeds — To finance plant expansion and: in¬
crease working capital.
Underwriters — May be Paine,
Webber, Jackson & Curtis and Blair & Co. Incorporated,
of

Proceeds—For

Brothers, New York.

Jan. 14 it

Co. and Salomon Bros. & HUfzler (jointly).
(2) For preferred stock—Eastman Dillon, Union Securi¬
ties & Co. and Salomon Bros. & Hutzler (jointly): Harriman
Ripley & Co. Inc. and Stone & Webster Securities
Corp. (jointly); The First Boston Corp.;, Blyth & Co.,

the

Aug.

South Carolina Electric & Gas Co.

com¬

Under¬

Corp.; Blyth & Co., Inc.; Eastman Dillon, Union Se¬

announced stockholders

mately $5,000,000 convertible debentures.

curities &

Truth

Salomon Bros. & Hutzler; Eastman

and; sell

serious

(12/3)

Virginia Electric & Power Co.

•

Co./-(11/19)''-;--rv^:.;

Smith, Barney & Co. (joint¬

Smith-Corona, Inc.

the form "of the pro¬

(EST)-

(jointly);; Eastman* Dillon,

Beane

ly); Lehman Brothers; Blyth & Co., Inc. Bids—Tenta¬
tively scheduled to be received on Sept. 24.

consideration is being given to

reported that this compahy pow

Fenner

Union Securities & Co. and

Weld

$28,000,000 of first mortgage bbnds and
70,000 shares of $100 par value preferred Stock. Pro¬
ceeds—To repay bank loans.
IIndei'wfiter—To be de¬
termined
by competitive, bidding.
Probable bidders:
(1) For bonds—Halsey, Stuart & Co, Inc.; The First Bos¬
ton

Pierce,

000,000 of first mortgage bonds. Probable bidders for
bonds may include: Halsey, Stuart & Co. Inc.;, Kuhn,
Loeb & Co. and American Securities Corp.
(jointly);

.—William R. Staats & Co., Los

issue

400,000 shares of common stock. Under¬
competitive bidding. Prob¬
able bidders: Kidder, Peabody & Co. and Merrill Lynch,
the public

200,000 additional shares of

-v'

is : planning to
early' -this fall.

securities convertible into

Power & Light Co. (9/24)
was also announced company plans to offer

Utah

sell in September or October of this year a maximum of

determined,by competitive
bidding. Probable bidders:,,Halsey, StumT/^&. C.o., Inc.;
The First Boston Corp.; Glore/ Forgan & Co.;. Blyth &
Co., Inc.: Bids—Expected to be received, on ;Sept. 25.

May 15.it

will

Co., Inc., San Francisco, Calif.

vote

Proceeds—For construction program.

Power

March

writer—For any bonds,/to be

"-Ohio

anticipates

in 1958 $25,000,000 of preferred

Siegler Corp.

Aug. 1

this

Co.

company

San Diego Gas & Electric Co.
April 23, E. D. Sherwin, President, announced that company will probably raise about $7,500,000 late this fall
through the sale of preferred stock. Underwriter—Blyth

company announced that- it
between. $8,000,000 and $10,000,000

raise
No

(9/25)

Gas

ly); Lehman Brothers and Bear, Stearns & Co. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Kidder, Peabody & Co. Bids — Tentatively
scheduled to be received on Sept. 24.

writer—To be determined by

expected to be received by the>company up to

Co.

The

(jointly);

Beane, New York.

$lans to

(EDT) on Sept. 18 for^ the purchase; from it of
$4,260,0001 equipment trust certificates.!- Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Gas

First Boston Corp. and Blyth & Co., Inc.
Salomon Bros. & Hutzler; Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co; (joint¬
Inc.;

Underwriter—May be Merrill Lynch, Pierce, Fenner 8c

- *•

noon

Northern Illinois

March 12 it

June

are

—

program. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

(in addition to $60,000,000 of bond now registered
with 'the SEC).,- Proceeds—For construction program.

Bids

Electric

announced

was

Proceeds

determined by com¬

plans to issue and

$15,000,000 of first mortgage bonds due 1987.
To repay bank loans and for construction

sell about

stock

$40,000,()bo

Norfolilw & Western Ry.

Service

(9/24)

Light Co.

Power &

Utah

March 12 it was announced company

(jointly). Bids—Expected to be
v>-.

sell in the Fall of 1957

of. first mortgage bonds. Un¬
derwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp,; Morgan Stanley & Co.; Kuhn, Loeb & Co
and Eastman Dillon, Union Securities 1&- Co.r. (jointly).
Bids—Expected-week of Sept;
■<->
,

Co.

Oct." 9.

Public

Aug.

(9/24-27)/:.;*

reported company tentatively

Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The. First Boston Corp.; Harri¬
man Ripley & Co. Inc.; Glore, Forgan &
Co.; Kuhn, Loeb
& Co., Salomon Bros. & / Hutzler and Eastman Dillon.

(jointly);
Eastman Dillon, Union Securities & Co. and White, Weld
& Co. (jointly) ;• Equitable Securities
.Corp.;; The First
Boston Corp.; Merrill Lynch. Pierce. Fenner & Beane.
ri-'X

Price—$31 per share. Proceeds—To increase capital and
surplus. Underwriter—Kidder, Peabody & Co., New York.

(10/9)

petitive bidding.

Hutzler

Sept. 12.

Indiana, Inc.

construction. .Underwriter—To

■'

Bros.

the Bank offered to its stockholders of record
July 31, 1957 the right to subscribe on or before Aug.
26, 1957 for 17,600 shares of capital stock (par $12.50)
on
the basis of one share for each five shares held.

Aug. 6

July 29 it was announced that it is expected that a new
series of $30,000,000 first mortgage bonds will be issued
and sold by the company. Proceeds—To repay bank loans
(amounting to $25,000,000 at Dec. 31, 1956) and for new

Sept; 12, .1856/ it
;issue;
$5,000,000 .of first mortgage bonds, ijuderwritcr—
To be determined by, competitive biddings' Probable
bidders: HafSey, Stuart & Co;; Kuhn, Loeb & Co., Leh¬
Salomon

Public Service Co. of

and sell

Brothers and

Union National Bank of Lowell

program. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
8c Co. Inc.; White, Weld & Co.; The First Boston
Corp.;
Morgan Stanley & Co. and Drexel & Co. (jointly). Bids

$100) to parent, American Telephone & Telegraph Co.,
will be used to pay for expansion program. Underwriter
—To be determined by competitive:, bidding. Probable
bidders: Halsey, Stuart & Co. Inc;| Knbn# Laeb.!& Co.;,:
Morgan Stanley ,& Co.;. Shields & Go.;:White,.^Weld &
Go;; The First Boston G.Qfp; Bids^--Tentativelyi;expected
to be received on Sept. ll.;-

man

York.

Corp. of California

May 21 it was announced company plans a public offer¬
ing of securities to provide about $6,700,000 of new
working capital.

(9/12)

construction

>%■

Power. & Light.

Underwriter—Van Alstyne, Noel & Co., New

Transocean

was

—Expected to be received

New Jersey,

poses.

announced company plans sale of $40,000,additional bonds to mature in 1987. Proceeds—For

000

coeds from sale of 900,000 shares of common stock

500 held by City Industrial Co. in connection with ac¬
quisition of Bethlehem Foundry & Machine Co. common
stock and for working capital and general corporate pur¬

—

Co. (jointly it; Lehman BrothersThe Eirkt -Bostonr Corp.;
Equitable Securities Corp.; Merrill Lynch, Pierce, Fen¬
ner & Beane;,Kidder, Peabody & Co., and White, Weld
& Co.' (jdihtly),:. .Offering—Expected, in first half oi
"T...

York.

Superior Tool & Die Co.
July 26 it was announced company plans to issue and
sell
150,000 shares of 70-cent cumulative convertible
preferred stock (par $10). Price—Expected to be be¬
tween $11.12y2 and $11.50 per share, depending upon mar¬
ket conditions. Proceeds—To discharge a note of $1,160,-

announced

was

Lynch,
both of

[

new

Dillon, Uniohi Securities- & Co., and Wood* Struthers &

1957.

New

company, a subsidiary
of
$25,300,000
securities, in the following form: $15,000,000 of
mortgage bonds, $3,700,000 of preferred stock and $6,600,uuu of common stock. Proceeds—To repay advances
of $9,300,000 from parent, and the
remaining $16,000,000
for new construction.
Underwriter
Glore, Forgan &
Co., New York.

company.

to 'be known

Basin

expansion program.
Underwriters—Merrill
Pierce, Fenner & Beane and Lehman Brothers,

Northern Natural Gas Co., may issue about

This would be followed by a $20,000,000 first mortgage bond issue by the resultant com¬

pany,

raise $110,000,-

financing program, the de¬
been worked out. Proceeds—

through

For

Beane, Eastman Dillon, Union Securities &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.; The First Boston
Corp.; Harriman Ripley &
Co. Inc.; Kuhn, Loeb & Co..

it was announced SEC has approved the merger
following subsidiaries: Essex County Electric

reported company plans to

was

000 in September

determined

by competitive bidding. Probable
bidders: Halsey, Stuart & Co. inc.; Merrill
Lynch, Pierce,

England Electric System

one

★ Sperry Rand Corp.

Aug. 9 it

of the five

into

Co.

—To

Proceeds—For expansion and working capital.
Underwriter—Merrill-Lynch,;Pierce, Fenner-V& Beane,
New York; Offering—Expected in third week of Sep¬
tember, with registration late in August.

May 23

Electric

Sept. 12, 1956 it was announced company plans to issue
and sell $6,000,000 of first, mortgage bonds. Underwriter

bentures.

New

(719)

bids for $60 million

And

banking group is

secondary

offering

shares of Walt Disney
for

the account of

of bonds.

priming

400,000

Productions

Atlas Corp.

The

(720)

mutual

established

July

funds

$6,602,320,

081,275

over

Corporation.

Research

sales

month

Seven

By ROBERT R. RICH

re¬

were

ported at $43,451,369 by Mr. Hare,
up 37% or nearly $13,000,000 over
the previous record total set in
the comparable 1956 period.

Capital Goods Industry to Benefit Hugely

opinion of the investment counselors of a $54 million

be sure how

there is more
that
the correction or
consolidation of business and se¬

mutual fund.

under 20 and over 65.

population should reach 217.9

By 1975, it was estimated, the

million, reflecting a 36% gain in the under-20 age group and a
56.7% increase in the ov.er-65: group, compared with 25.4% for

INVESTMENT

the entire

FUND

;
will

population.

; ;

■

;

supported by the remain¬
ing 52%, which means that; technological .progress and the trend
toward automation in industry, will have to, be accelerated to.
statistics hold

If the
ment

'•

1;.

•

non¬

:r;

DEALER OR

"Each

NATIONAL SECURITIES &
RESEARCH CORPORATION
Established 1930

means

factor is multiplied by the other. And this
expansion of industry to supply the vastly

growth

substantial

enlarged demand for goods and services, and a continually
need for

and more

growing

schools, homes, hospitals, roads—and all
needed to support our continually

5, N. Y.

Slayton Associates termed the spectacular rise in population
of- the "most favorable" factors in the 'long-term invest¬

Investors

INCOME? I
^

Established 1925

list

selected

securities
for possible

INCOME in the years

Automation Shares

ahead.

Now

open-end
With

Income Fund
J
""

■

(|»J
I
lnuluol f„„<( w(los#
(irs(

Offering

investment
company
initial capitalization of

300,000 shares of capital stock,>$1

value each, has been organized
/Washington,J it was just an¬

par

Public

nounced.

* m

Offering

fund's shares will,
n

■

mediately;
mer

A
.

•

commence

the
im¬

—

Dr.: Herbert

assistant

Robinson, for¬
Lord Cherwell,

each

investment dealer*

Tiie Parker ^Corporation
200
;

;

Prime

adviser'to

fund is- mailable from '■
you*

•

The

recovered
tancei of

comment on
the
present price position of the 15
different industry funds offered

Inc.,

Securities,

consulting

and

Boston, Mass.

funds

the

light

funds,

these

little

10-year

given which, for the
also shows results of a

first time,

maintained investment
reinvestment of capital

tnrough

equipment,

the

cies of the fund

devices

investment
are

advantage of the

and

poli¬

geared to take

immediate and

future prospects in a new era that
is characterized by steadily ex¬

panding

demand

for

goods

and

services.
To
yses,

aid

its

investment

anal¬

Automation Shares, Inc. has

retained

adviser

the

Council

gain distributions.
Distributors
that

these

comments

Group

adjusted

clearer picture of the
individual fund performance, but
only give

permit

that

of the

year's

led with

the

from

1947

1954

ment shares up

funds

ical

I.P.C. Sales

low

effect

recom-.

on;

of last
nearly to the

o n,.

has

business because of the
demand

for

demand

creates,

men

slackens, and

industries, such

n.;some •

ONE WALL

tie
intermediate; fluctuation
in eapaelty; ^ .expeetedf to:^reach al¬
milliorrtons: asF compared
cither price or income.. Perform¬ most 2
with actual proditctroiv.e£ 1.4 milance for the 10-yeaF period shoWs.
an

increase of

49%, with
gain of 38%.
._•>.

in¬

the

number

investors

who

come

-in

,lD48v,(Ray.pnier^ia used as an
danger

Of-rip^ust^ overexpansidn^and the
abbyeTSmoFpegessaril^ to bc con-1
unfavorable comment

10-year price rise of 410%

Houghton Fund B, Inc.
Walter Benedick, President of
I. P. C., reports* that; in the eight
months from fiscal year-end Oct.
31, 1956 to June 30, 1957, the
number of I. P. C. plans has in¬
creased

from

22.773

34,190,

increase of 11,417 plans or 50.1%.
The value of shares held under
these plans on June 30 was

$29,-

950,000,
up
months, for

and.
the

income gain of 289%

same

for

period.

;

With Smith, Clanton;

level
tural

Joins

long-term in¬

in.readjustment

somewhat lower
of demand.. In the agricul¬
machinery- industry for ex¬

operations! to

Company,
First Citizens Bank Building.

increase of 48.4%.

siderable progress

Clanton

band.-a-ppqar ;to have mr'dc con -

RALEIGH, N. C. — Walter T.
Thomas, Jr. has joined the staff

ample there has been a reduction
of output so that; the industry is>

eight

$8,465,000

Rajmnjer-

vestment).: r
V••
■Av fev^'' industries, on the other

(Special to Tiie Financial Chronicle)

Smith,

possibly in
vantage of

Perry Blaine

position to take ad¬

the

moderate upturn

recently reported in farm income.
Farm expenses-have increased bu
this has been offset by increase

ASHTABULA, Ohio—Robert E.
Maltby is with Perry T. Blaine &
Co., 4519 Main Avenue.

that rea -

operating efficiency so

"tSezhsZ—

Fund
objectives

of thi»

Address^-

possible- long-term, capital an
growth^ far its shareholders.

are

Prospectus

upon

request

;?;Lord, Abbett &-Co.;
.

.ri-v-

New,YorkChicago

F.ttnd

Fund

tpns

A Common Stock Investment,

Name-

non-

some

pro-

STREET, NEW YORK 5

ferrous

imports

is the situation today

increase,

231%, and Chem¬
166%:
Dividend
the four growth

BULLOCK

1Established 1894 ;

and

mo v.

income
r

which of

favorable

become
temporarily:,unfavorable factor

Investment

only

spread of $12

p a it s

normally

materials it

Equip¬

viding diversified, nonaged investment in
Canada. For free prospectus mail thin ad' to'

CALVIN

beginning

point,
e x

increased

dis¬

Jt dealer® <>r
""""—Co.

incorporated mutual fund

indeed

are

own

"uaRNY

—A U. S.

metals,-, rayon,-, and, to
extent, paper. A few years
ago for example virtually all the
payments for
Co., Philadelphia, is the transfer funds increased on average -297% dissolving pulp- used: in .'making
rayon
and cellophane- was pro¬
during the 10-year period..
agent.
Others
An illustration of the.price-and- duced by- Rayonier; Inc.
The fund will maintain head¬
have •-entered: the; industry how-;
dividend-stable funds, is given by
quarters at 734—15th,Street, N. W.
ever* and Rayonier vfras expanded
the performance of Food shares,
Washington, D. C.,j
"?■
;
which experienced relatively lh> so^rthaf ;-;by ^l95B the* industry's

assets,
while
the
First
Pennsylvania Banking and Trust

sSTMBHT

t'.

the

course

high, Aviation shares

Electrical

orders

fall, and have fallen

gain of 56*2%^ followed
Petroleum shares
up
396%,
and

shipments

compared with

billion

10-year

low

the be¬

moreover,

$6 billion higher than, inventories,

Electronics

Plant

results from the four funds

closes

orders

clearer comparison

examination

Since
year,

orders, so that unfilled
have gradually receded,

coming

another.

one

the

whole have been higher than in¬

not

figures

trench

ginning

manufacturers'

(Special to The Financial Chronicle)

•

shows

downward

Investors Planning Corpora¬
;
Outstanding performer among
tion of America plans for the ac¬ the
cyclical funds was Steel shares,
cumulation
of
shares, of
Axe- with a

automation

change,,

Unfilled

' v

the

tor of Automation Shares, Inc.

tion

the December high.

inventories

and

formance

Riggs National Bank of
Washington is custodian of the

An average of 1,427 new planchill, and widely-known interna-'
tional
economic'
authority,
has holders each month is being added

manufacture, rental and installa¬

short dis-

The /situation. with respect to
manufacturers'; new,''orders and

industry

these

discusses

last

Minister Chur¬

Organized to invest its resources
in companies participating in the

Berkeley Street

to; within

been elected President and Direc¬
'

and

had

year

surprisingly
the ., Axe report
three states. New orders have shown a
basic investment purposes of long- moderate upturn, but, as has been
term growth, relative stability of the case for many months, inven¬
principal and income, and cyclical tories have continued to expand so
that the ratio of new orders to in¬
price action.
In
separate "fact sheets" on ventories is clearly in a moderate
Group

further

nomic, mathematical and statisti¬
cal
techniques
to
government,
•business and financial problems.
The

remarkably firm

thn^ihiddle; of the

by.

specific

mended for long-term growth

personal scientific and statistical
prospectus

Council

Re¬

Industry

Washington,

Inc.,

search,

and

than half, the De-

tinued to be

prepared by the fund.
"Quarterly Review" pref¬

survey

research organization specializing
in the application of modern eco¬

Automation Shares, Inc., a new

mutunl

Market

In New

v?r\ Incorporated

Economic

for

The

and

GROWTH of CAPITAL

CURRENT

curities, Inc., is made in its cur¬
rent "Quarterly Review," a new

also

mutual fund invested
inv«

ill!!

"Barring some major catastrophe, such as another war," their
report concluded, "there is no end in sight to the rising long-term
trend in production and prices stimulated by population growth.
This is a trend that should continue to be reflected in the upward
movement of security prices."

Incorporated

)

FUTURE

Group Se¬

Group, Inc., sponsor of

fully

ment outlook.

from

e c 1 i n e although
they too" are beginning to decline
again. The index of semidurable:
goods raw; material prices has con¬

rising living standards."
one

cember-tApril 4

Distributors

comment

record of price and dividend per¬

for

still be awaited."

each

INVESTING^

movement—which, however, must

the institutions and implements

Broadway, New York

about

recovered

decrease

the
since late 1955 can
January peak.
without a serious
The
Axe-Houghton
index of
disturbance to the broad averages
of either.
We, therefore, believe durable goods raw material prices
has
followed
a
similar
that increasing confidence can be
course
Nonferrous scrap prices have been
felt that a base is being laid for
weak but steel scrap prices have
a
further
substantial
forward

aces

population growth is being accompanied by in¬
creasing per capita production and increased per capita income,
the report went on, adding:

FOLDER AND PROSPECTUS TO

120

; :■ ;

Currently,

FREE INFORMATION
YOUR INVESTMENT

will become "Practically

force

Slayton Associates said, unemploy¬

up,

the- working

among

existent"
WRITE FOR

living standards."

our

only slightly higher than
level, this representing a

now

completed

This

report continued. "They will have .to be

maintain

the May

curities prices

"By 1965 the number of people in these non-working groups
amount to an estimated 48% of the total population/' the

Weekly

early June low point but the
downward trend has subsequently
been resumed so that the
index

lieving

Axe-Houghton

could
Tobasis for be¬

it might develop.

dav,

special population report being distributed
by Slayton Associates to the 15,250 shareholders of Managed
Funds, Inc., the "most striking" statistics issued by the Census
Bureau have been those indicating rapid increases in the number
According

The

business index has recovered
from

consolidation

period

On Decline
antici¬

entered upon the

about two years ago no one

Capital goods industries will "benefit hugely" if the younger
and older segments of the American population continue to rise
at the rate estimated by the United States Census Bureau, in the

of Americans

A MUTUAL

"As

pated

of National Secu¬

Vice-President
rities &

Business Index

Upward

Movement

46%

1957

Axe-Houghton.,

record for the month

increase pf $2,the similar
month last year, according to fig¬
ures
released by E. Wain Hare,
of

Thursday, August 15,

Renewed

Sales of the National Securities

Series

.•.

Group Expects

National Sales Up

Chronicle

Commercial and Financial

Atlanta

(1Los Angel**

Number 5664

186

Volume

The Commercial and Financial Chronicle

. . .

(721)

Several

ized net farm - income has
creased 2V2%, according to

in¬
the
Department of Agriculture. Live¬
stock prices have recently ad¬
vanced- sharply,*, .moreover, and
this should have a favorable effect
on
the demand for agricultural

commissions

Securities Salesman's Corner
Personal Interest Is the Answer When You Sell

have shown

-the steel
industry appears to be confident
that the production of 1958 model
passenger automobiles will create
moderate upturn and

them

had

have

investment experience with other

mand for

she

and

this

About
came

time

will

to offer.

policy,

Take your time—let your women

secretary

door and told

the financing of the present arms
race depends on present monetary

assistance

opened the accounts of ficulties and I straightened it all
investors over the out.
,r;

Some

er monetary policy. And because

other things on my mind
get the best advice
that it is possible

and

women

years.

increased demand. * Retail de¬
goods, generally has re¬

have

many

too many

Women

these transactions

than repaid me for consideration in any arms race—•
the 30 minutes of my time which especially in the one we are now
I undividedly gave to this woman engaged in with Russia. Just so,
investor.
She knows that when timing
is
the
most
important
she wants to talk with me I haven't factor in any economic calculation

certainly

By JOHN DUTTON

Machine tool orders
a

at the moment. This is an
intolerable situation,
"Timing
is
the
fundamental

are

suggestions

machinery.

days later I made some
and ' the investment

clients and prospects tell you their

that problems

find out

ask questions

timing

is now a

critical problem than ever,
moment, U. S. defense
an? Y'
mo.netary policy are

^*1 each other. It

continued firms;_others are first time inves- someone wanted to see me and I about their financial requirements
rankly 1
letdown in sales , of many types
them 1
of consumers' durable goods.
despite

mained high

•

Business activity abroad re¬
alright I suppose, but the young
generally high despite
mail who took my orders always
varying degrees of financial
seemed so busy.
His phone was
stringency: K in several countries.
Ind ustrial ■' production
in West ringing every few minutes and
when I talked with him he didn't
Germany, for example, has again
seem to take very much interest
reached; a new high record, allow¬
mains

■

the hire of
coal cargo
ships* have recently,
shown a sharp decline but .it is

this reflects
situatiohur' whether

yet clear whether

not

temporary

the

reaction ,of
into

firm

and

some

ushered

and
have

conference

rushed

home,
filling

have

prosperity

buy

$31.77

date

same

year

friends

the

ago.:

U nreal ized

1954,; :when
began,
amounted
to
$$,464,600. * Market
value' of $26,460,400 was 56% in

acquired
the

program

These investments

6f' cost.

excess
are

April

since

investment

naturally hesitant about

are

giving their confidence to anyone.
and IVJtakc

Reach- Out

and

Women

metal fields.

Net income for the first half of
1957 was $3,960,693, or 75 cents a
share, compared with 65 cents a
share for the comparable period
of 1956. Dividends were increased
from

31*4 cents to 35 cents

with

the

28,

payment.

1957

Atherton

investment

up
as

Co., 634 Congress Street.

Hill Darlington Adds
(Special to The Financial Chronicle)

BOSTON,

Mass.

Alfred

—

most

help.

burn

was

Middlebrook, Inc.

for

the

(Special to The Financial Chronicle)

i^T+

rm-n

Street.

forms
forms

sarv

sary

(Special to The

Financial

clearly
clearly

p. Handke is now affiliated with
Heenan

Clarey, Inc., Pillsbury

could^ straighten

I made the

hnnnenfrf

her

appointment and
that

has; become

connected

With H. O. Peet & Companv, 23
.west both Street, members of the
New? Yorlc xanet
-tz-C

V*" f r"; ft '* " **

But

light

stay

com¬

race

with

Russia, both short-term and long-

term.

Washington
on
August 2.

cost

The

during

understanding
requirements

defense

long-term

now

short-term
money
will more than offset any
any

squeeze
*

worrving

The Problem of Defense
It's

amend

time

Financing
well-

the

Genuine

economies

pef+ ne

military
strength
necessary
to
keep the peace as quickly and as
continuously as possible.
mnYklv

„T,
1irmolI<,lv

called

she

hfsf

was

mom-

npfpneo

?ess

m-e

thi<T

prograiVw

defense

our

and

ahle

Finally, i told my operator that
should hold my calls unless

something very urgent
until I called her back. I noticed
was

surprised look on her face when
did this but also she seemed to

cveHier

for

both

the

inflation

cost

defense program is now

being subjected. Monetary condi¬
tions change with business conditions, both as a matter of fact

and as a matter of policy. Monetary conditions are also subject to
change
with
domestic
political
conditiohs,
every
two
or
four
But

years.

America's

problem

does

grow

lead time

security

not

change except
serious. Thus, the

imposed

the defense

cycle by modern technology—eight
years

considerablv

—

longer
than
the
limit imposed by

constitutional

system

our

political cycle.

any

"Histow

will

hnnnr

said.

^pprpf^rv

^^
fight

a mar yr the
111
all

coordinate
vital

sources

re¬

national

our

security. Mr. Forrestal brought to
his job a combined background in
both defense and finance. So does

li SecretoT'lnderZ"'1

dollar, but the interest dollar. The
money the

disarmament

Even if

isn't
j^ai ^

the

—

cost

were

in the

monetary policy must be
stantly
and continuously

concoor-

dinated. Our economy can afford
any defense program required for

the continuous security of the free
world. Anyone with a combined
background in defense and finan-

cial problems—like Secretary of
the

Treasury

late

Anderson

Secretary

restal

before

him

can

—

the

and

Defense

For¬

ex-

pected to be clear about this,
of termination President Eisenhower is indeed to
ivjixuiiravruii ^
» —.mv—

moment

the

—

which

pleased.. Then
lachr

client

seemingly

actual cash flow of Treasury pay-

^J
crisis
from

about

the

Treasury

resulted
defense problems."

that
our

Defense

has

already

Program

Underfinanced

Continuing, Mr. Janeway stated:
"Everyone now knows

that our

Treasury is underfinanced But
very few people understand that
the re3S0n for th;s 's th° ™ore
fundamental fact that our defense
Even

and 1

her
went

important dif-

the

not

monetary authorities
monetary^ autnorines
grasped this fact. For

recent
monetary policy as if the Treasury
Were going to need less money
instead of more. If the monetary
authorities are allowed to continue with their present experiment, we will find ourselves in
the position of paying more m.
order to buy less firepower. Thus,

they

she

very

Janeway

Mr.

Secretary of the Navy and Deputy

have

the

portant aspect of the current de- fense was dominated by his infense crisis is not the de£ense pistence that defense planning and

have

clung

to their

will be jeopardizing not

contractors. But the fact

ments to

that

disarmament negotia¬

the

have

tions

bogged

down;

Anderson's

time

should
with

and

for

Defense Department-and, therefore, of the Treasury—are rapidly
runni-ng

into

With Gibbs & Co.

during

lmmediately ahead
m* *

rjsing deficit in defense

defend

not

ourselves

can

afford

against

Mass.—John

SpHlane is now with Gibbs & Co..
^ Main Street.
Kalman Adds to Staff
(Special to The Financial

the

fjnancing has raised the question
whether

WORCESTER,

competitive

disadvantage

this

combined

(Special to The Financial Chronicle)

negotiate seriously
towards
disarmament

Russia
us

our

defense programs.'

and

when the money troubles of the

qualifications at

crisis

Treasury

Secretary Dulles' desperate flight
to London makes it official.
Why

rtaetafi

again and as soon as we
c^cun ?
fh
to talk t
c

uildei-ed

our

precisely
thinking

^less our defense program will Secretary f Andexs^on.^^n^tMs

cards

gven

responsible
and

monetary

saying—"War is too im- higher the cost of the

Treasury.

again and
aim

into

achieved
bv
msi!^y :
f.
acnievea by james Forrestal* as Ihe founding
too
much S
admmisfrabon vvrtnm the father of-our. itiodetq .system of
about tne state of prosperitvand •'
oi piospeiity and-effective Establishment. The -most
•.bout the
defensetpfanWhl and oucJiilosdefense ecoriomy Ave'can gDhv of
national
seeuritv^ Pernot enough about the state of de- hone to achieve is to create the
i,,v-national secuiity. cer

oeople seem<to

Cliot Janeway

started

there

(S^eiial^o^EbiNANfek'L'CpaoNiCLE)^'*,' •
Kansas CiTY, Mo1, -h Graham
■

Pr°gram has
wasiingmg for ^ betterbeen underfinanced arms
p0rt of f
y
rs
g

telephone
telephone

ing.

Joins H. O. Peet

4 Hunt

nnri

interruption.

Building.

Association

she

Several months went
by and she did not understand
that the Trustee bank was holding
her additional shares; in fact, the

Chronicle)

MINNEAPOLIS, Minn.—Walter

requirement to
petitive in ;the arms

"leaning

bocretary oi Lie
ininr' J across the boards would have the be congratulated on the appointdesignating Anderson is
as wen lmormea immediate effect of increasing the nient of someone with Secretary
designating - - ccisis ahead of

what she should do and wnere

™

With Keen an & Slavey

the

I sent her the neces-

and

BOSTON, Mass. — Robert C. whole
thing was sort of a muddle
Hopes is now affiliated with Lee
to her. She telephoned and asked
Higginson Corporation, 50 Fed¬
eral

Fore

and not—as it should be

pressure

f the

first portant to be

should sign.

Lee Higginson Adds

Air

name,

gent
Establishment today is a financial

an-

conven-

o n;

the

But it is. The most urpressure
on
the
Defense

left to the generals." Treasury must borrow, the more
Nowadays, war, or the prevention inflation we will suffer—and the
opportunity to talk with you. Be
war, is too costly to be left to iess actual firepower our defense
as
relaxed as possible and show financiers with no practical ex- dollar will buy.
them that their business interests perience
of defense financing.
"Recent
optimism about discome first with you. Here's a sam-"President •'Eisenhower
pas recog- armament as a solution to our depie. Several days ago I had a visit £1Z.
}t ®
appointment o fense financing problem is dying a
from
a
woman
client who had Robert
Anderson to head
slow, painful, and costly death,
meet

you

vested

Street.

pressing one even
complicated by the
are being

this

economic wind is

changing. It

delay
which

na....

The

kind

that

the

defense prob¬

our

that

this

give your lady prospects an

asked to have the dividends rein.™

31 :Milk
formerly with Co-

t i

known

bought just a few small lots of
L. mutual funds from me. She had

Co.,

nual

lequirements

make it, you will iind
women
investors will

Hill,

always

economy.

sense an fense.
Defense is our primary
with whom problem at the moment, not pros-

D Urso has become connected with

Darlington

the

imposed

defense program can be trusted
.account that is to continue keeping the peace.

to their

suitable
you can

"When

PORTLAND, Me.—Townsend M.

job of helping your clients build

time

Byrne is with Schirmer, Atherton

portant piece of business. If you to continue expanding the econare
sincerely dedicated to your omy. The question is whether our

lhat

CSpecial to The Financial Chronicle)

standpoint

themselves admit

the wind."

financial limitations that

person

welcome your

With Schirmer,

the

«From

considering doing an im- perity. Prosperity can be trusted

company's second quar¬

June

are

quick

are

"attitude" of

they

Sincere

of Assistance

Offer

Corporation
told

acquaintances

primarily in the oil, chemical,

electronic

ter

they

the

Research

and

not equipped to under¬
vagaries of investment,

are

stand

Publishing

when
they have made unfortunate in¬
vestments, and since they realize

appreciation' at June
1957 in marketable securities, they

30,

and

were

ended" them have heard of so-called pit¬
that date released today.
This is falls and other disappointments
an
increase
of
6% ' over
asset that have befallen some of their
value-7 of

purpose

security, but
dollar as well.

our

the

when they explain their monetary

Hails advent of

national

our

the value of

our

authorities

months

six

for

defending

while

world

$33.72 a; realize that they are in a man's
30; 1957 according to. world and to a certain extent they
bewildered.
Also,
some
of
company's: financial: state¬ are
the

which
- - -

will

afford Defense Program it needs,

aga,nst Communist imperialism, tionnl security,
lem would be
: Eliot Presi- if it
Janeway,
not

certain feel-

free

recommendations.
women

can

The American economy can af-

busy account executive proceeds
ford
to do the best he can in making
a

for

-OIIe

'monetary policy is
assumption that it
change with every economic
gust
of
wind.
The
monetary

Treasury Secretary Anderson citing his defense experience.

account cards, and then

new

—

■

but it has been underfinanced for five years.

the
out

through

Economist asserts U. S.

share at June

ments

:«
the air at all

Defense Problem, Says Eliot Janeway

they

stock
the

never

Coordination With Treasury Now Our Chief

room,

feel

ing of being out of their element
Bond.. when they walk into a bank, or
a
busy
investment firm. They
common

Company's

job-and

based

being

Electric

$177,060,700,

good

—

treatment

some

office

and

was

funds Then do

This

women

many

busy

instead

been

usual

Most

Closed-End^ News

into

made

some

extra

some

an¬

was

the books."

who- walk

production lias r remained
relatively high, although the un¬
derlying i trendK. - is ;• temporarily obscured by the presenttendency;
for many miners' to
vacations,

value

him, just like I

other number

mestic

Asset

received

if my account means very

much to

downturn in the
demand for American coal.:" Do¬

July.' :

Oh, he calls

account.

feel

it foreshadows a

have

and into the air. As a matter of
fact, it has taken eight years and
the better Pai't of $800 million re-

once

charged' for

Rates

from my uncle's estate and I ,
,
...
.
.
.
.
would appreciate it if you would ^y t0
tfei.n int0 ~Uying any" Change the Basic Premise of Our
in
a
while
and
suggests think about it and let me know thing. Be a helper and you wont
Monetary Problem
something I should buy but I never what I should do with it."
ever have to be a pusher.
contrast the basic nremise
in

ing for seasonal variation. Ameri¬
can foreign trade has consequently

remained liigh/ •; /:

the most

mos^ *ncome

have been just wonderful to
—secuie
to give me all this time and Pro§ram
and the greatest amount
I don't want to keep you from °f "peace of mind" is for t,hem to
more
important things. I also take you into their confidence.

you

Chronicle)

MINNEAPOLIS, Minn.—Thomas

Dale Jr. has been

staff of Kalman &

added to the

Company, Inc.,

McKnight Building.

the

omin0us accumulation of Russian

strength we shall have to face by
1960s. As matters stand now,

With Stern Bros.
,

1Mru,

(spec n o

™

& Co.

r«nnmati

KANSAS ( Clly, mo. — L»onajlq
L. Gumbmer is with btern tiros.
current'fears about & Co., 1009 BaUimore Ave nue,

the strength of our Defense Eslabljshment
is being critically

limited by
what we can and

cannot afford, member

only under money conditions as they

Exchange.

ol the Miowest b

•

and Financial Chronicle

The Commercial

Thursday, August 15,

ijj7

(722)

The following

Indications of Current

latest week
week

Business Activity

month available.

month ended

steel operations

Indicated

Equivalent to—
Steel Ingots and castings (net
oil

Crude

condensate

and

Crude

§2,097,000

*2,043,000

2,030,000

2,154,000

Aug.
Aug.

2
2
2
2
2

(bbls.) at

Aug.
Aug.
Aug.

—

(bbls.) at

7,763,000

7,840,000

7,964,000

27,417,000

26,556,000
1,894,000

25,876,000

27,045,000

1,743,000

1,854,000

11,819,000

7,561,000

7,764,000

2
2
2
2

177,561,000

28,597,000

29,415,000

133,822,000

119,592,000

48,737,000

46,248,000

ASSOCIATION OF AMERICAN RAILROADS:

freight loaded (number of cars)
freight received from connections (no. of

CONSTRUCTION

ENGINEERING

CIVIL

Aug.
cars)—Aug.

535.334

523,987

589,721

——

and municipal

State

147,396,000

206,232,000

111,090,000

189,264,000

150,863,000

194,813,000

214,375.000

133,565,000

8
8
8
8

127,719.000

163,732,000,

124,359,000

118,302,000

Aug.

construction
construction

Public

$322,829,000

-Aug.
Aug.
——Aug.
-Aug.

construction.

Private

$325,465,000

23,144,000

31,061,000

90,016,000

15,263,000

Federal

S. BUREAU

(U.

Aug.
Aug.

3
3

9,700,000

10,010,000

551,000

569,000

103

101

SYSTEM—1041-40 AVERAGE

579,000

INDUSTRIAL)

—

Aug.

steel

Pig iron

Aug.
—Aug.
Aug.

(per lb.)

(per gross ton)

METAL PRICES

(E. &

(St.

Lead

at
at

(East St. Louis)

(primary pig. 99%)
(New York) at

Aluminum

tin

Straits

Aug.
Aug.
—Aug.
Aug.
———Aug.
Aug.

(delivered)

tZinc
Zinc

5.967c

,$64.76

H9.6
li4.6

119.3

115.4

113.8

111.0

113.0

112.1

109.5

130.4

130.1

124.7

103.7

102.0

95.5

110.0

110.5

107.5

122.5

118.7

121.5

109.9

111.0
125.2

120.9

134.7

134:5

132.2

112.4

111.8

—'--—
vegetables—

and

Public

Other foods

——:

Industrials

14.000c

16.000c

Apparel

13.800c

15.800c

Men's

10.500c

14.000c

Women's

___

Footwear

10.000c

13.500c

25.000c

24.000c

Other

94.750c

95.625c

97.625c

99.250c

Transportation

87.34

87.50

apparel

91.19

92.50

102.46

94.71

95.32

96.54

106.04

Aug. 13

S2.93

93.23

94.86

104.66

91.05

91.62

84.68

85.20

85.85

89.78

90.48

91.34

93.52

102.46

91.77

92.50

93.67

103.64

3.65

3.59

3.58

4.33

4.24

4.05

3.97

4.21

4.19

4.08

4.34

'4.30

4.18

Group

MOODY'S COMMODITY INDEX

NATIONAL PAPERBOARD

4.81

4.77

4.72

4.49

4.43

4.38

3.69

4.31

4.32

4.17

Stocks
Cotton

3.60

■

month

4.29

4.24

4.16

429.0

427.5

359,226

246,869

238.939

282,617

158,025

BOARD U.

506,493

433,554

446,373

524,084

Wheat,

BOUND-LOT

All

Aug.

TRANSACTIONS

ACCOUNT

FOR

110.32

110.16

110.22

108.99

purchases

MEM¬

Other
Total

Oats

sales

Other transactions initiated

1,863,070

1,544,090

1,464.850

283.060

392,820

277,620

270,210

1,242,660

1,531,980

1,228.100

1,197,420

Rice

July 20

sales

1,525,720

1,924,800

1,505,720

1,467,630

Other

Total

the

purchases

Other

Hay,

342,400

Hay, clover and timothy (tons)
Hay, lespedeza (tons)-,

288,900

360,100

Beans, dry edible

616,395

562,635

93,460

639,970

641,606
735,000

Winter

631,048

715,740

736,118

2,295,552

2,902,170

2,360,575

500,290

391,380

2,542,950

2,138,306

2,372,487

3,043,240

2,529,686

•

2jl70,868
2,563,848.

—

1,469,140

1,679,737 "
$90,589,510

$76,557,055
1

1,195.715

—July 20

Customers' other sales..

5.224

-.July 20

$71,218,077
1,099,282

8.180

1,190;491
$58,980,325

$72,447,447

-July 20

286,930

329,050

Other

•'

EXCHANGE
FOR

round-lot

Total

SALES

MEMBERS

643,180

469,070

296~950

.'470,370

NEW SERIES

DEPT.

563.020

11,425,920

13,316,810

465,770
10,968,610

11.867,950

13,879,830

11,434.380

480.570

11,796,380
12,276,950

118.0

117.9

117.7

114.2

-Aug.

93.2

92.8

91.5

89.1

106.1

106.4

102.4

commodities

figure.

.Aug.
other then

(Includes

farm

and

foods.

106.7
98.7

-Aug.

pound.

•'

uZZ

2^3'
■19G

SED^^^

FEDERAL

f
115;.' ;
113

113

115

Sales'
■/•'T

1136 a'

131

1.118,000 barrels of foreign crude

runs.

?Based

97.1

125.4

125.5

82.4

121.9

new

annual

capacity of 133 435

150

tons

tNumber of orders not reported since introduction
centers

PRODUCTION—BOARD

where freight

from East St

ERNORS

THE

113

111
*114
119

126

100

—

Railroads
Utilities
Banks

AVERAGE

WEIGHTED

COMMON

YIELD

STOCKS—Month

(125)

143

3.75

3.79

6.19

Amer.

Tel.

(24)

—

(10)

(199)

4.88

4.84

3.05

2.97

4.01

& Tel)

6.31
4.96

4.68

incl.

(not

141

(25)

141

143

July:

—*———

—

(15)

Average

June:

____—:_
•
143
——144

Seasonally adjusted

Industrials

GOV-

RESERVE

FEDERAL

SYSTEM—1947-49=100—Month "Of

Insurance

delivered basis at

cent

96.3

125.5

°,vJan; 11 3?57' PPlan. xPnme 1, 1956 basis of 128,363,090 tons.
against Jan. Western Zinc sold on
Im-estmen*

Mon'h

SECOND

32,324

168"
212 ~(i'

MOODY'S

—Aug.

.Aug.

one-half

SALES

,;r
•

DISTRICT,

?''.f g-Jg.

-■;

Unadjusted

(1947-49= 100):

products
Processed foods

•Revised

180.805
r'6.4E5
'13;010

12S 859

T&tMT-"'. -^71.398
"/f 337461 fff": ;f.:f35,828:,

100—Month of June:^,^
Sales-(average monthly
Sales
(average daily) i unadjus!feedti**_f£^_"_ .f,, 1 '
Average

INDUSTRIAL

442,030

July 20

commodities

All

STORE

RESERVE

'"/"" 'r

220'

ERAL

h--i:
f

•

Stocks

July 20

Farm

'138.383
112 904

12: States> >.(
Apricots: ( 3 -States)(tons )

RESERVE BANK OF NEW YOfiK—1947^49

Commodity Group—
All

16.922

6ld*..

•!i Stocks,

July 20

PRICES,

—

sales—

Total sales

LABOR

29~7~550

STOCK

sales

WHOLESALE

329^050

(SHARES):

Short sales
Other

9,503
33.967
166.634
243.716

ON THE N.

9,547

."l6

Cherries

$74,679,772

ROUND-LOT STOCK TRANSACTIONS

AND

ACCOUNT

•

Z1" 2 96;950.

4.022
24.330

;•

>;5,106-5:
1,135.608

297.550

542,260

July 20

FOTAL ROUND-LOT STOCK

29,022

3L229

summer

5.260

4,172

9,432

•;?.;•

,1,090,387
$57,518,106

286,930'

purchases by dealers—
shares

4,652

6.445

28.610

summer

r V

.July 20

.4.188

17.114

6.810

.z'ifl

-1,140,773

.July 20

Number

21.107

-4,243

-———-—---.u.'-*

DEPARTMENT

Short sales
sales

8,671
61,127

.•3,104*

1,32,7.688
$-74,679,772

8,895

1,378,749 6

sales by dealers—

Number of shares—Total sales-

48,712

108.708

1,321,026

1,386,929

-tJuly 20

Dollar value

21,558

47.402

•

>Sugareahe lor
Sugar beefs
'Hops .(pounds) :ii_
Apples^: commercial xrop (4j.usiiels^rfi,f»f_ff2
Peaches-.. ( bushelsl
Pears- (bushelk)fff'_ffffff_f___ff 1—
fffff
j«Grapes - (fogKf
_a.u—^

•.

-July 20

short sales

'Sweetpotatoes (hundredweight) sfff

•

Customers'

372,495

fTobacco (pounds)

EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—t
Number of shares
July 20
Dollar value
.—July 20
Odd-lot purchases by dealers (customers' sales-)—
Number of orders—Gustomers' total sales

...

\oiar"iiizriri—

;■ i;,

•TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N.
Y.
STOCK

Late

1,152.652

21.058
• 4,740>
16.683

■

89,607
222,605

392,980

1,993,277

.July 20

—

379,210

.July 20

Total sales

Early

262,212

11,119
68,280

ii.

Early spring
Late spring.

•••■

2,351,915

.July 20

—

„

(tons.)__,

(cleaned-— 100-lb. bags):
Peas, dry field (100-lb. bags)ff"i_'__l"if—OiPotatoes (hundredweight )—
■'
y,

105,070

508.207

585,657

—---——

268,600

75,770

734.995

439.431
26.456
47.350
38,930
»119,608

•»

—

402,700

alfalfa

997.207

234,613
-

371,000

.July 20
—

—

sales

Round-lot

(100-lb.

261,110

644,290

3,451.292

39,791

242,410

77,450

17,700

July 20

purchases

Short sales

Round-lot

L_f

270,670

486,402

;

—f__

(bushels)
(bushels)

20,300
'

(bushels):.-:.—.i—La—.... 185,178
"if-v
1,374,304

253,850

•

Other

(bushels)

31,700

.July 20

„

426.5

* i,

—-

394,810

Total round-lot transactions for account of members—
Total

(bushels)

18,700

July 20

sales

10,664.000

426/7

—-----'-—-1 —

spring (bushels)—!

286,330

—July 20

Total sales

8,533,000

419.8

735,720

bags)
all (tons
Hay, wild (tons)

floor—

Short sales

v-8,396,000

970,533

July 20

off

,18.954.000

'715,124
224.969

July 20

sales

51,934.00.0

18,246,000

—,

July 20

transactions initiated

21.406,000

18jl74,000

:—^ " 940.093

(bushels)

July 20

Total sales

Other

21,213,000

REPORTING

Hay,

Rye

the floor—

purchases

Short sales

1,094.865
18,954,000

(In

(bushels)

all

Flaxseed

Total

CROP.

Barley (.bushels)—.—
1,522,820

July 20

924,124

18,246,000

OF AGRICULTURE—

DEPT.

Other spring

July 20
July 20

Short sales

137.500

104,749

841,756

18,174,000

._—

(bushels)_i—3,011,912

Durum

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total

—•

spindle: in place June

—

Crop as of July 1
Corn, all

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
100

of June

(DEPT. OF COMMERCE):

PRODUCTION

Winter
=

1,147.443

13,280,361

—___■

active

Active spindle hours per

280,659

Spinning spindles in place on ;June 29--——
active on June ;29___
Active spindle hours (000's olhltted)'. June 29

341,759

282,952

—Aug.

1,405,340

10,842,327

424.1

Vug.

—Aug.

June

"spindles

009,814

672,753

649,700

1,250,893

10,059,527
92,144

June v29-__-^i._L'—_

Spinning spindles

3.53

428.2

.Aug.

of activity
,
——*
Unfilled orders (tons) at end of period

108.2
121.5

COM¬

BALES
„
V
June__f_.L—___Lf-f—

COTTON SPINNING

CROP

(tons)

AVERAGE

DEPT.

119.6

124.2

3.47

ASSOCIATION:

Percentage

1049

—

131.9

111.8

124.3

public storage as of

3.93

.Aug. 13

Orders received (tons)
Production

LINTERS

117.1

136.P
123.3

111.4

services—i'_

125.5

137.3
123.4

recreation

Linters—Consumed month

3.62

13
Aug. 13
Aug. 13
.Aug. 13

Railroad

Industrials

125.4

consuming establishment as of June 29—

3.39

Aug. 13

Utilities

172.5

3.60

4.09

Baa~——II—ZI—————I——-—————Aug.
Public

127.1

176.8

—im¬

and

AND

135.5

176.8

MERCE—RUNNING
Consumed

3.09

4.36

91.1

135.3

_fff—

ancl

COTTON

122.8

92.0

122.4

_____x.

———:-

-—

Other goods

100.98

91.48

97.9

127.3

102,(j

care

Reading

97.16

88.95

107.0

98.7

92.0

_____———
-

care

personal

102.13

93.38

Aug. 13

Group

Medical

104.8

"108.8

98.6

———_

;

Private

92.57

90.77

106.5

109.0

10.000c
25.000c

Aug. 13

106.5
.

126.4

127.8

boys'—
——.'
girls'—__

10.000c

127.9

105.1

ancl

26.000c

138.1

104.2

——__—iff

_——

and

•

135.4

operation

•

110.9

127.3

Household

.Aug. 13

corporate

112.3

fuels

U. S. Government Bonds

Average

—-,

elec.tricity____.
and fuel oil———f_—— 7

and

38.075c

AVERAGES:

YIELD DAILY

;

39.550c

—Aug. 13

Group

BOND

MOODY'S

:——

27.350c

—Aug. 13

Group

home______—_—.

Rent

28.825c

.—Aug. 13

Group

Utilities

—:

26.350c

—Aug. 13

Railroad

—

28.525c

Aug. 13

Baa

products

26.075c

.Aug. 13

Housefurnishings ______—;j—

86.69

—

3,804

2,231

125.3

$55.50

Aug. 13

Aaa

3,335

3,785

2,280

1917-49=100-

—

——Ll_,

$62.95

$54.50

—Aug. 13

corporate

3,741

<.2,296

fi—

Dairy

MOODY'S BOND PRICES DAILY AVERAGES:
Average

3,702

3,903

INDEX

home

Public
U. S. Government Bonds

9,370

—_

—

28.100c

7
7
7
7
7
7

9,806

Cereals and bakery

5.374c

$66.15

$53.50

5.967c

7
7

6,712

9,901

—

i——

Solid

Aug.
Aug.

1,700

7,535

—

Food

J. QUOTATIONS):

Louis)

credit

PRICE

items

Gas

Electrolytic copper—
Domestic refinery at
Export refinery at
Lead (New York)

5.967c

$66.15
$53.83

6
6
6

1,783

7,645

loans—_——

—~———

credit

Fruits

(per gross ton)-

Scrap steel

7,417

1,801

products—L—If;.
Meats, poultry and fisfri^--__■.—

All

IRON AGE COMPOSITE PRICES:

Finished

14,255

7,731

—

modernization

and

CONSUMER

229

256

281

265

30.084

14,852

goods

payment loans
accounts

Single
Charge

DUN &

INC.-—

BRADSTREET,

$39,454

31,901

15,092
7,806

—:—

Noninstalment

'11,530,000

11,964,000

12,474,000

1,070,000

541,707

32,344

—.—l— • f

Personal loans

(COMMERCIAL AND

$42,245

_f———-ii-V

Food

EDISON

FAILURES

credit

consumer

Repairs

104

Aug. 10

206,424

Month of May:

Aug.

100

ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)

0^5,396

145,403

9,205,000

1,500,000
69,000

INDEX—FEDERAL RESERVE

DEPARTMENT STORE SALES

30:

June

consumer

Service

OF MINES):
Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)-

COAL OUTPUT

731.840

685,777

274,445

$1,835,418
1,103,598

831,180

677,410

—-----—

730,187

951,855

—

■—————

Instalment

Other
$-101 045,000

$1,561,367

637.218

Au,omobiie

$298,259,000

$1,589,073

f—

municipal

and

millions

Total

ENGINEERING

—

$1,623,300

—

OUTSTANDING—BOARD
OF GOVERNORS OF THE FEDERAL KESERVE SYSTEM—REVISED SERIES—Esti¬
mated short and intermediate term credit

660,287

569,712

$300. 000

CONSUMER CREDIT

736,407

601,396

NEWS-RECORD:
Total

State

-I

740,711

3
3

construction

Federal

119,289,000
44,598,000

$1,679,000

construction—

construction

Public

7,551,000

185,920,000

48,943,000

31,454,000
138,072,000

Ago

omitted):

(000's
U.

Private

175,698,000
30,611,000

176,360,000

Total

12,841,000

12,446,000
7,730,000

11,920,000

•'

Revenue

July

117,936,000
2.045,000

Year

CONSTRUCTION — ENNEWS-RECORD — Month of

GINERING

7,065,450

6,952,000

6,922,000

6,843,350

-Aug.
(bbls.)

Month

ENGINEERING

CIVIL

Residual fuel oil (bbls.) at

Revenue

REPORTED BY
U.
S.
CORPORATIONS—U. S. DEPT. OF
COMMERCE—Month of June (000's omitted)

CASH DIVIDENDS—PUBLICLY

87.5

output (bbls.)
Kerosene output (bbls.)
-Aug.
Distillate fuel oil output (bbls.)
Aug.
Residual fuel oil output (bbls.)
-Aug.
Stocks at refineries, bulk terminals, in transit, In pipe linesFinished and unfinished gasoline (bbls.) at
—Aug.
Distillate fuel oil

Ago

79.3

Aug

Gasoline

Kerosene

Year

Ago

*79.8

output—dally average (bbls. of

gallons each)
———
runs to stills—daily average

Month

Week

§81.9

of that date;

are as

Month

Week

Aug. 18

tons)

of quotations,

or, in cases

Latest

INSTITUTE:

AMERICAN PETROLEUM

that date,

Latest

INSTITUTE:
(percent of capacity)

STEEL

AND

IRON

AMERICAN

production and other figures for th«
Dates shown in first column are either for the

statistical tabulations cover

4.05

£29,151.000

£48,946,000

3.63
5.2-5
4.46
4.25
3.(5

3.8*

Louis exceeds

1 cu"

NEW

CAPITAL

MIDLAND

ISSUES

BANK

GREAT

LTD.—Month

BRITAIN
Of

June—

£19,606,009

Number .5664

186

Volume

The Commercial and Financial Chronicle

(723)

of funds to State and local
govern¬
ments and, further, by the Gov¬

Continued from page 5

eral

expenditures and Federal

istics and

debt

were so

that its basic free market system
has not been impaired. Strength is

greatly expanded.

ernment's

Observations.

policy of attempting to
take much wider
responsibility for

•

author's wide range of interests, were his quartercentury-long business association and friendship with Thomas
Fortune Ryan, initiated at the time, 1899, of the war on the
Trust.

Tobacco

Colorful too, if less important,

is the author's recounting of

relationships with such as "Diamond Jim" Brady and "Bet
a Million Gates"—Gates actually made .the famous bet on Baruch's
cards in a baccarat game at the Waldorf.
One.of the major implications from- the Baruch story in both
the business and securities areas is the pointing up of the contrast
between the old laissez-faire "robber,-baron" days and our postcrash times of the SEC and other government regulation.
his

Ageless Investment Philosophy

our

seiting-forth of his investment philosophy and rules
author makes contributions whose value is not eradicated by

the

passage

of time or external conditions. Particularly helpful
frank, emphasis oh his Own mistakes and failures; underline

is the

pitfalls besetting the investor and speculator—the

ing the ageless

knowledgeable as well as the inexpert.-. Continuingly he stresses
the importance of basing longer-term- policy as well as individual
decisions on-painstaking running-clQwn of,,the relevant facts, in¬
cluding statistical criteria of value.

Consistent .therewith, and most

important in the eyes of this reviewer, is this veteran's stressing

psychological pitfalls. He graphically depicts the speculative

of the

public's, tcharacteristici pyramiding

extravagant

hopes

of an

1901—28 years,: before that Great-er
century before our current Era of inflation-andthe-common-stock). And he devotes a section to the curious psy¬
"New- Era''/back

earlier

Crash (and half a

chology of crowds as it is spelled out in Charles Mackay's "Ex¬
traordinary Popular Delusions and the Madness of Crowds."

Originally published in 1841 and reprinted in 1932, this "remark¬
of

documentation

able

the

unbelievable

crazes

that

have

swept

through the ages," has been observed by Mr. Baruch as a
stock market bible since the turn of the century. ;;
down

"Nearly always the problem that arose in the Stock Exchange
in other business dealings was how to disentangle the imper¬

sonal facts of
which

situation from the elements of human psychology

with these facts," says Mr. Baruch early in his intro¬

came

duction.

y --:

not

And

A?.

his large-scale
achievements with the War Industries Board, in his public service
culminating in the monumental Rubber and U. S. Atomic Energy
Report, in iris close relationships with Presidents and such figures V
as Winston Churchill, lias his outstanding forte undoubtedly lain
in unique ability to balance:ih^erial fets^with^the human eie-> :
only

ments.

his

market

y.'rl

doings,

and

for

the

"secu¬

With Federal
expenditures at
their present height, Federal taxes
have remained high. The result is

that taxes have
in

business

concerns

economic

confronted

are

increasing in¬

fluence

life.

Both

and individuals

by tax considera¬

activities does

not

ades

more,

with

come

tax

(possibly) high-return venture is
less attractive to the investor, and
the "mature"
of

and

the

investment

has

economic life to

Ear"'..5'' V-,-:

realize how

"safe"

type

attractive.

has

relied

be to
meet

present situation, and to conclude
that Government regulation and

the

the Common
Corporation

was

declared

payable
1957 to

August 31, 1957. Check

will be mailed.

CHARLES L. MCE
Treasurer ',

|
|

Philadelphia, Pa.

August 2, 1957.

high because they are good, and stocks are
of doubtful value." »*
•

Drewrys

dividend of $1.75 per share upon the out¬
1% Preferred stock of this Company
11.375 Cents per share on the 8Mj% Sec¬
ond Preferred Stock has been declared payable
Qotober 1, 1957 to holders of record at the close
of
business
September 12,
1957.
No dividend
action was taken on the Common stock.

(40)

the

in the markets gen¬

erally.
,/
\ '
Now, Federal finances are much
more prominent.
Per capita Fed¬
.

eral debt is

100 times what it was

serve

"Accord"

rates

for

March,

months.

of the

the

turn

only debt management, but

century. With also Treasury fiscal affairs, have
$275 billion, it now important influence on our money
makes a great difference whether market. It is well known that Fed¬
it is in short-term or. long-term
eral expenditures have moved up¬
obligations. It also makes a great ward in recent years. A major
difference whether our authorities part of the increase has been in
responsible for credit control are military expenditures. More than
trying to support Treasury securi¬ one million men are serving in
ties at fixed levels. Current Treas¬ our -armed
forces
outside
this
ury financing makes the problem country. All told, the total cost is
this

debt

of credit control more difficult.

nearly

$40

billion,

something

policies relating more than 10% of our Gross Na¬
the management of debt have tional Product.
Federal
expenditures are also
improved in recent years. Support
of
Treasury issues at fixed levels swollen by foreign aid, domestic
by -he monetary authorities ended subsidies, supports and programs.
With the Treasury-F e d e r a 1 Re¬ They are also expanded by grants
It is clear that

DIVIDEND

HENRIETTA

•

Board

Directors of

chines Corporation has today

PEPPERELL
MANUFACTURING

COMPANY
Boston, July 186,1967

declared

quarterly cash divi¬

dend of $.60 per share, pay¬
able

September 10, 1957, to

stockholders of record at the
close

business

August

19, 1957.
DIVIDEND

NOTICE

regular quarterly dividend of Seventy(75f) and a year-end extra divi¬
of One Dollar ($1.00) per share have

C. V. BOULTON,

Cents

declared

stockholders of
ness

payable

Treasurer

August 15, 1957, to

record at

close of busi¬

the

August 8, 1957.

Checks will be mailed by the Old Colony

Trust Company of Boston, Dividend Disburs¬
ing Agent.
Frederick D. Strong, Secretary

590 Madison Avenue
New York 22, N. Y.
June 25,

1957

IBM

ALUS-CHALMERS
MFG. CO.
COMMON

1951.

toward free mar¬
Treasury issues has

been made in recent

Not

QUARTERLY

INTERNATIONAL

Further progress
ket

CONSECUTIVE

September

Limited U. S. A., Inc.

PE-PPE-HE-LLI
IP^PMLU

been

MELBA' AMERADA

1 70th

com¬

The

RUSKIN • CINCO • PRINCE

Stamina of American Business
concern

IBM's

third quarter

NEWMAN, Secretary.

International Business Ma¬

dend

MOORE

Secretary and Treasurer

JOHN

Company

Don't Underestimate the
great

J. I. Case

T. E. JEANNERET,

ROYALIST

PHILLIES • WEBSTER •

repre¬

South Bend, Indiana

five

number and

DIVIDEND NOTICES

10,
to stockholders of record at the
of business on August 23, 1957.
payable

stock,

HAMLET • S.SEIDENBURG&CO.'S

page

share for the

record

shareholders

Taylor

DIVIDEND

No. 133

regular quarterly dividend of fifty
(50c) per share on the issued and
outstanding common stock, $10 par
value, of this Company has been de¬
clared payable September 30, 1057 to
shareholders of record at the close of

BUSINESS MACHINES
CORPORATION

SERBORRD
finance

company

cents

business September 3, 1957.
4.08% PREFERRED
A

DIVIDEND No. 13

regular quarterly

dividend of one

($1.02) per share
on the 4.08% Cumulative Convertible
Preferred Stock, $100 par value, of
this Company has been declared, pay¬
able September 5, 1957 to shareholders
of
record at the close of business
August 22, 1957.
dollar and two cents

Transfer books will not
Checks will be

be closed.

mailed.

W. E. Hawkinson,

Vice

August 7, 1957

President and Secretary

Avenues

sentative.

|
|

September 16,

loss—"Actually, the procedure one should follow
stock [sic]. With rare

1957

Stock of this

FLORde

f rom

per

of forty

dividend

quarterly

and

Mountain

300

DREWKIS

quarterly dividend of
twenty-five cents (25c)
per

Ernest

standing

mon

TOM

Continued

Scott & Co. have opened

with

Racine, Wis., August 12, 1957

DIVIDEND NOTICES

is to sell the bad stock and keep the good

Baruch grossly underestimates the
talents contributing to his success.

WESTFIELD; N. J.—Montgom¬
ery

office

(Incorporated)

cents

Again, inconsistent with his credo tied to cold economic and
statistical value appraisal, is his psychologically-rooted speculative
instruction to avoid the emotional foible of selling a profit-accrued

variety

our economy

of 1957 has been declared

wholly irrespective of their value—in anticipation of their panicky
liquidation by the squeezed N. P. bears.-..,y.

Mr.

greatest

the

could do to

NOTICES

his

example, during the Northern Pacific Corner his market partici¬
pation was confined to; short-selling of other leading stocks—

Surely

injustice
would
underestimate its capacity to
the new challenger of the

Perhaps
we

DIVIDEND

much he

Joins Peters Staff
GRAND

now more

degree scarcely
imagined before the levels of Fed-

psychological "savvy" likewise have led the successful speculator
to know when to ignore even the revered "economic facts." For '

exceptions, stocks are
low because they are

our

additional

Thus, from many angles, Fed¬
eral (finances now influence our

There is also discernible in the Baruch story how intuition and

one

Thus, the small and the venture¬ Government
operation should be
some firm, vital to the progress of
extended. Granting that the Amer¬
the economy, is hard pressed for
ican economy has new character¬
capital.

prescience. While the rules he sets down are logical
unexceptionable, this great artist of speculation, like others
in his and other fields, again and again discloses, unwittingly,
that he bases decisions through "playing by ear" in lieu of formal
"rules,
:■
■ ■'v.; (

protect

hand,

JUNCTION, Colo.—
complex and Jim E. Jinks is with Harry W.
problems. On the Peters, 411 Main Street.
other hand, it is a more dynamic
economy and has far more for¬
R. L. Ferman
ago.

economy

intuitive

stock to

On the

economy
few dec¬

ment.

the present high in¬
rates,
the high-risk,

and

•

American

cases,

almost

stressing'of the psychological factors, we
have the. distinct impression that Mr. Baruch in his own invest¬
ment

present

different from that of

Company
every
turn. In ward thrust than ever before. The
these are of suffici¬ basic question
MIAMI, Fla.—Robert L. Fer¬
is, can we take the
ent importance to influence the di¬
man & Company is engaging in a
new developments in stride?
Can
rection of economic activity. For
securities business from offices in
we keep our balance and proceed
the Ainsley Building.
example, going into debt is en¬ gracefully from here on?
couraged by the fact that interest
In
contemplating future pos¬
charges on debt, being deductible
Now Ft. Worth Sees.
for income tax purposes, are, in sibilities, it would, indeed, be an
error to
FT. WORTH, Texas —The firm
underestimate the capa¬
part, "paid for" by the Federal
city of American business to make name of McLeod, Fisher, Crook
Government.
Purchases of realty
necessary
adjustments
provided & O'Neall, Inc. has been changed
may
be encouraged by the fact
free
market
conditions
remain
to Ft. Worth Securities Corp. Of¬
that local taxes, being deductible,
JThere are more than four million fices are located at 316 Bailey.
are partly "paid for" by the Fed¬
separate enterprises in the United
eral Government.
And so the ill¬
States.
Each is making its own
du Pont, Homsey Branch
ustrations m i g h t be continued.
decision. Each is making its own
PALM BEACH, Fla.—du Pont,
From another angle, the individ¬
adjustments to new developments
ual in the high income bracket
Homsey & Company have opened
and each is striving to produce
an office at
241 Via Linda, with
might, in theory, find it to his ad¬
goods or services which will best Gordon M.
vantage to borrow money (with
Copp as representa¬
meet market requirements. This is
the Federal Government "paying'
tive.
the American economy. This ac¬
part of the interest) and to buy
counts for our present achieve¬
tax-exempt
securities.
Further¬
Montgomery Scott Branch
tions

In the face of his

the

.'J""*."

"Playing by

but

"welfare"

many

the

What Progress From Here On

problems, it is dear

new

everywhere in evidence.
The five developments
In this country,
which
where every
rity" of the population. The storm
man is his own economist, may we
have been pointed out—population
of public opinion against the
not underestimate the ability of
technological
progress,
height of the budget estimate for changes,
American
business to adjust
to
shifts in the importance of indus¬
1958 is a wholesome reaction in
new circumstances and to continue
tries, managed money and the new
view of the present trend of Gov¬
to provide an increasingly better
prominence of Federal finances—
ernment spending.
standard of living.
are
very important.
They make
the

important in its historical connotations and high-

Also
lighting the
Mines.

COMMON

STOCK DIVIDEND
tIKNISHI CORPORATION

90fh Consecutive Quarterly Payment

The Board of Directors of Sea¬

TENNESSEE

declared a
regular quarterly dividend of 25 cents
a share on Common Stock, payable
October 10, 1957 to stockholders of
record September 19, 1957.
board Finance Company

PREFERRED

STOCK DIVIDEND

The directors also declared regu¬

lar quarterly dividends of $1.18%
on the $4.75 Sinking Fund Preferred
Stock and $1.25 on the $5.00 Sinking
Fund Preferred Stock, both

payable
of

October 10, 1957 to stockholders
record September 19,1957.
EDWARD L.

July 25,1957

JOHNSON

Secretary

CORPORATION

July 10,1957
A

dividend

(55c) cents
declared

per

fiftyfive
share was

payable September

25, 1957, to stockholders of
record at the close of busi'
ness

September 11,1957.
John G. Greenbuagb

Treasurer.

Broadway

New York 6,

N. Y.

The

Chronicle

Commercial and Financial

Thursday, August

sachusetts

The
that

-i|

i;.<

•

Census

the

theless,
for

BeVmd-the-Scene Interpretations
from the Nation's

were

hearings before the Senate Fi¬
nance Committee on the finan¬

United
indicated
that about
thing in
short supply in this country is
money. - \
- - • :
•«
/ V j
the

Dec.

states

growing in¬
primarily in the
local and state
and < individuals

debtedness is
hard-pressed

governments,

corporations,;

and

;

sharp-tongued critic of
the
monetary policies
of * the
Eisenhower Administration, is
apparently seeking to aid fel¬
low Democrats in getting them
an issue for next year's National
elections. He is not missing an
opportunity in the hearings to
heap some of the blame for "in¬
flationary
conditions" on the
ilepublican executive branch of
the Federal Government.
Senator
Wallace F. Bennett
Kerr,

of Utah is

">1

,*r\\

,V|! i

for the

spend

serve

hearings,

made

with

flavored

politics, have brought out that
the Federal debt during the past
four and one-half years, has in¬
creased only $5 billion — from

series

Mr.

days,

pertinent

ob¬

Among other things

servations.

equiv¬
in the

June 30, 1957, was the

"United States as

June

$1,832

for

terest

charges

compared with

30,

1946.

the

In¬
is

debt

ing off.

spokemen

•-?

Republican

actually the current inter¬

senators

est rates are not high when they

compared to the depression

are

and

sledding.

wartime

and

years,

in¬
the

curb

011

when

lion

rate might go
before leveling

Federal^

that in

of the

coun¬

resisting high
prices.
This means that the
stockpiles of goods is getting
bigger. However, until there is
try

buyers

round
is

there

are

price

little

strings

f
■

agreement

thoroughly
the

the

was

Treasury

the

1951 whereby the Board 110
longer supported the U. S. bond

•

and

others

will

cut

came

Census
up

with

states

the

Lone

high

low

10.7

Eric

million

11.8

million

high of 5.9 million and
its

nation's^Copitfll

for

Jr., President.

into becoming
highest populated
1970. By 1960, when
decennial

census

Florida

4.1

million.

(.Special to Thz Financial

1970

with

the

follow:

New

Pennsylvania
Illinois 11,353

report

(10,035);

20,023
20,296

(17,342);
(15,273);

12,508

(11,917);
(9,958); Ohio 12,Texas

Ohio

with

Greene

Lhdd,'Third^JNa]

Building^-members

tional

New York Stock

Oreg.

Swails
with

has

Patten

Inv^stm(2j
1

George

MARKETS

TRADING

Sulphur

Mills
Envelope

Morgan Engineering
National Co.

| Carl Marks
20 BROAD

& no. Inc.

STREET

Cement

Riverside

Flagg Utica

SECURITIES SPECIALISTS
NEW YORK 5. N. Y.

LEANER &

TELETYPE NY 1-971

GArfieM 1-0223

■$•':

Telephone

FUhbard 2-1990

CO.

Securities

10 Post Office Square,

Louis 2, Mo.
•.i

Com.

Indian Head

Investment

h 5

Mills

Campbell Co.
Fashion Park

United States

Member Miciwe&t Stock Exchange

•i a

Del'el]

asssociat J

Co., American Bank Buildingwas formerly with Camp & Ca

Star Steel

TEL: HANOVER 2-0050

St,

Patten1
—

become

Botany

SCHERCK, RICHTER COMPANY

SL 456

of-tn^

Exchange.

Now With George

of America

320 N. 4th St.

A-vDonalxT J|
afl'iliatefl

11,752

(9,724); Michigan 10,483 (9,380);
New Jersey 6,942 (5,849); Mas¬

pro¬

Dumford r has,-.become

PORTLAND,

York

California

right

DAYTON,

Chronicle)

1960

figures also
given in thousands in parenthe¬
sis

:
•

Highest figures shown in the

Ladd

With Greene &

report for each of the 10 largest
states
(as ranked in 1950) for

of the

Na|

CorpJ

Research

representative in the states 0
Oregon and Washington, it wa
announced by Henry J. Simonsonj

way

has the

multi-

has joined

Alvord

FOREIGN

not coincide witj
inetos.]

tional Securities &

for

A. S.

Bought—Sold—Quoted

Teletype

■

With National Securities

Old Ben Coal

Bell

for Texas

Northwest Production

Pan American

and may or may

Delhi-Taylor
Bank

■

the "Chronicle's" own

taken, the estimated population

make

startling

•/

'.7

[This column, is intended to

of the 10

one

258

Bureau

crowd

highways, with only ac¬
roads, will bypass cities,

The

Anlieuser Bnsch

million

1.2

low of 5.1 million. Florida could

to
of 41,000 miles

divided

with

through them.

Olin Oil & Gas

about

pretation from the

the Lone Star State, and Florida

helomg

highways. * Some

million for
million for

16
13

1970 estimates

showed

■

Bureau of Roads

Interstate

and

Universal Match

lives

population estimates

mark the course

cess

Gas

the

Bureau

responsibility

great

Oil &

affect

Census

1970..

and

The

history,

for

biggest pub¬

program

it will

The

Federal Reserve Board reached

York, and
or

side

than

faster
.

has been
prices and |

income

average

> taxes.C

Other Projections

everybody, the Bureau of Publie Road put up the money for
state

borrowing*

Discussed

works

and

reductions

likelihood' .the

population of

California

program

Because it is the

lic

high

estimates listed

1955

The

'rising

less than their 1950 difference.,

author¬
ized by Congress for the next
13-to-15
years
will be more
than 75 times greater than the
building of the Panama Canal.

ducing inflation.

the

The

each.

the low side to

'capita iricome in 1956 was
almost '50% greater than 1929.

per

18*4 mil¬

expensive job, and every¬

construction

spending would aid a bit in re¬
Chairman Martin says

each

million

body pays for them.
Some au¬
thorities say the huge highway

laned

Colorado

ulation range of from

obvious that the

partment of Commerce records.
The
Department contends the

48 states.

The estimates imply a total pop¬

Building highways these days
is

to higher

•goods and services than at any
time in history, according" to De-

and neck for

running neck

first place among the

open

Highways and Population

The Under Secretary

also said that

insist

and

that

New

persist,

While

New York and California will

to compete

off.

is a level¬
If rising interest rates

Federal Reserve will loosen the

$7.3 billion.
Administration

has

other fellow. The

the

higher, before there

scattered sections

Government debt

the

possibility the
slightly higher

the conviction that
interest rates may edge a little

he expressed

mental figure.

alent of $1,581 per person

and

44,043,000

government, there

dollar is shrinking, the average
American is able to buy more

estimate of 164,303,000.

1955

market for the
scarce
dollars. Thus, the gov¬
ernment which paid 2.3%, now
is having
to pay 4%, with a

government savings
bonds are going to have tougher

Board

over

208,346,000,

crease

Burgess

billion to $272 billion.
Here, in the free-spending Na¬
tion's Capital where authoriza¬
tions
and
appropriations are
done
in
astronomical figures,
the
sum
of $5 billion is no
longer an impressive govern¬
$267

The Federal

placed

erations

Tracing the technical ramifi-^
cations of Treasury policies for

Soaring Debt Burden
.

the bonds, the
government has to go into the
money market to finance its op¬

Reserve

Federal

longer supports

days giving
the Federal Re¬

policies.

about

The

government securities have
gradually declined. Because the

for

Presi¬

and higher crests."

jections, but a series of inter¬
esting estimates. The 1970 na¬
tional
population
figure
is

result the market

Communist

cycle rolls

vicious

market.

greater enemy

Although

inflationary fires.

and

practice of economy in this administration." ".
Everyone is
blaming

Martin is expected

dollar

has been little indication of the

several

testimony

additional fuel

mortgages were

Mr.

allowable

'.If J

new

economy

here, Miss Dopley, but we don't
furniture store to get a dividend table!"

know you're

Federal Reserve

the

Board.

tbe

Eisenhower advocated

dent

W. Randolph Burgess spent
days on the witness stand
before
vacating the chair to
Chairman William McChesney

maximum interest rate
for FHA-insured

the

in
,

Russia.", ".

phone a

Martin

thief

thousands,

America ri than

Board's
half-point increase in the dis¬
count rate in four Federal Re¬
serve Districts, and the increase
by the Federal
Housing Ad¬
ministration from 5 to 51/2%
Reserve

;

—V;. Inflation is

pay more

ury

maintains that

Kerr

Federal

are

savings, their insurance, victory
bonds and rainy day nest eggs."

Under Secretary of the Treas¬

Senator
the

sew¬

Burgess on Interest Rates

tionary.

i Like

of, .thrifty
Americans of the. value of their

the time.

and
anti-infla¬

to constitu¬
.

destroying

'; robbing

to
operate schools than any other
function of government1, and the
cost of education is growing all
governments

;

statements

in * the night, galloping inflation
is

necessary

are

prove

prosperity." ' ".

disposal plants, and to pay
more
for goods and services.
Local

foreboding

Examples:

ents.

govern¬

streets,

angles

have been directed

roads,

hospitals,

hitting

The

age

serving a "defender"

rates

terest

should

rolled

politics.,

Some

increased
indebtedness for more schools,

insists

brand of

!:I

■

local

and

ments have

Administration's policies.
that the higher in¬

of the
r

'' ' ■

;

state

The

been

they, have placed .on their letvters usually depended on their

or an

have

inflation.

The corporate

billion.

Inflation

them

hard

increase of $72 bil¬
debt (plant
expansions, etc.) jumped from
$202.9 billion at the end of 1952
to $249.3 billion at the end of
1956 for an increase of $46.4
1956,

expected

160,000 people.

all

•

lion.

.are;

and consumer credit) rose ;
from $135.5 billion on Dec. 31,
1952 to $207.5 billion 011 Dec. 31,

n(P

and weekly newspapers in their
districts;. For 'weeks
practically

gage

Oklahoma's Senator Robert S.

birth

Many Congressmen each week
dispatch .-news, letters to daily

(mort¬

debt

individual

three

21, 1952 to $50 billion on
31, 1956, or an increase of

The

has shown that the

Oklahoma, Arkanpossibly
Mississippi

Congressmen

$18.8 billion.

time, testimony

same

Thi

purposes.

variations

except

it had

debts

billion on

have risen from $31.2

Never
worthy

Nevada, long the smallest state
is expected to double. In
1950'

local governments

and

state

hand the

the other

far have
the only

thus

States

subject
be

rate.

and

sas,

Board.

serve

the

condition

cial

government
pegged by the Federal Re¬
the

bonds

the

The

—

are

errors.

migration,

death

and

an,

(4,360)

should

planning

All

WASHINGTON, D. C.

they

factors:

grow

195^

Bureau admitted

large

Bureau used

And You

Capital

(5,004)'

figures

relatively

•

5,514

North Carolina 5,226

BUSINESS BUZZ
!

(724)

Boston 9.

Teletype

Full text of Commercial and Financial Chronicle : August 15, 1957, Vol. 186, No. 5664

FRASER