Full text of Commercial and Financial Chronicle : August 16, 1956, Vol. 184, No. 5560

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RAILROAD INDUSTRY FEATURED

IN

THIS

ISSUE

Reg. T7. S, Pat. Office
•

Volume 184

Number 5560

New York 7, N. Y.,

Thursday, August 16, 1956

Price 40 Cents

Copy

a

EDITORIAL
.

ISMsllfepee It
Not

so

very

long

it

ago

Iran;

was

now

■.

Social Realism

i:

Suez Canal.

-

trouble in
of

various other parts

imperialism

American
as

Indian), has

the

now come

world power with a world

a

of

a

the

to regard itself
mission, and is

and

finding out about some of the perplexities
problems attendant upon such a position in

the world.
,

r*

as

well

peace

the

is

>

f

: 1

the

keystone

Soviet Union.

"enlightened": artists

approaching the Suez
difficulty is on the horns of an unpleasant dilem¬
ma. He without doubt wishes above
all, or almost
all, to have

realism"

aesthetics in

.--V/-'''

President Eisenhower in

The "Chronicle" is

privileged to present today
opinions of the chief officers of a representative cross-section
of the nation's railroads, along
with that of the Acting Chairman
of the Interstate
Commerce Commission, on the economic outlook
for the industry as a whole and specific carriers.
These articles,
especially written for the "Chron¬
icle," begin herewith*v
:
the

ideas; and how<
free one and why

"Social

;

.

sane-

~

•?"'">'

A

illustrates

of

The railroads of

running joke among
Janus complex of

place we are
of optimism.

the

Bold, aggressive man¬
is adopting a positive ap¬
proach to problems of the industry
The

One

elsewhere in the world. He

noted political figure, suffer¬
facial deformity, commissioned
portrait in oil. The first artist

a

his

No

reduced

of the awkwardness of

one

a sense

Suez

belongs

whole

world

times

in

of

A

Panama

Canal

on

its

peace.

hands

which

Continued

on

as

page

the

tackled

the mistakes

of

?

politician in profile,
Continued

SECURITIES NOW IN REGISTRATION

Underwriters,

—

so
on

cars,

confidence

of

vitality of this industry. All of
indicate a determination
only to hold, but also .to increase,

new

these things
not

and potential

Clarke

Owen

rail

participation in the nation's total
traffic. But the most encouraging change is the apparent
abandonment of a feast or famine, month to month basis

that his

Continued

22

on

page

6

dealers and investors in cor¬

complete picture of issues now registered with the SEC
undertakings in our "Securities in Registration" Section, starting on page 34.

porate securities are afforded a

DEALERS

railroad

in

as damage-free box
mechanical refrigeration, bulk¬
head cars and trailer-carrying flat
cars is further positive proof of the

job,
his

page

new

including
dramatically

cars,

rejected work, was attacked as
excessive "naturalism." The third, successful painter

simply illustrated the

of

order,

equipment, such

also

27

amount

on

the. continued ex¬
pansion of our economy. Willingness
to experiment with special service

*

highlighting the subject's
face in clinical detail.
His,'

scarred

••

;

artist
on

the

management

bestowed

confrere by

Ted Hallock

and

it

second

capitalizing

It has, of
course, never been open to Britain's enemies in
times of major war. The Administration, too, has
the

his hair,

reflects

appre-

"

to the world. At the least it must be available to

the

age

him with a magnificently handsome
face, and mounted him on horseback

can

situation of that sort. Yet in

subject's

returned

doubt that he knows as well as any
else what the Kremlin is able to do with a

one

his

tremendous

equipment now
145,000
freight

:

—gazing into setting
Soviet
sun.
The picture
was
immediately dis¬
carded, branded as sheer "idealism."

aware

America, at long last, are entering a
defeatist complex under which they op¬
many years is rapidly vanishing.
In its
finding a refreshing new attitude and spirit

agement

'

certainly
appearing
to be a defender of the past conduct of colonial
powers and a supporter of all their present causes.
as

must be

i

new
era, the
erated for so

contemporary

of Russian life,

ing

CLARKE

Acting Chairman, Interstate Commerce Commission

this ideological adjective-—which can
be applied to almost every phase

in the Near and Middle East—

,

:

OWEN

private savings; and (6) the extent of rate of growth.

.

now

Acting Chairman of ICC, present opinions as to the pros¬
pects for individual roads and the industry in general.

23-day study tour of U. S. S. R., Mr.

Russians accept their state as a
they do not question their status. The J. Henry Helser
& Co. reporter describes:
(1) make-up of the composite,
enigmatic Soviet citizen; (2) popular acceptance that
"Government policies are none of my business"; (3)
contradictory duality of identity and purpose of foreign
relations, material standards, and individual viewpoint;
(4) inferior construction and production; (5) lack of

•

opportuni¬

expense

a

:/ young

arduous attempt

very

(except at

especially written for the "Chronicle," chief

officers of many of the nation's leading carriers, also

tions upon Russian heavy
industry; the Russian success
in immunizing its
populace from Western

A

always alert to gopd. fishing in troubled waters*

relatively brief and hardly

upon

Hallock observes the effect of Western economic

formerly great empires. Evidently, the ferment

ties fate presents. The United States with but

In articles

Director of Public Affairs '
■' '■ ■/'vVV;:''
;"/J. Henry Helser & Co., Investment Managers
v

Based

virtually world-wide and plainly, Russia, long
the center of a jgood deal of
J empire building and
is determined to make the most of the

Outlook (or the Industry

HALLOCK
.

V;

Before and in; between there, was

India, Burma 'arid

By' TED

'

is

at

V

important Egypt and the

more

Railroad Executives Discuss

In Soviet

it is

s

Cyprus and still

Seen

as

State, Municipal
and

:

^

U. S. Government,

*

State and

Municipal

Securities

STATE

and

MUNICIPAL

BONDS

HAnover 2-3700

CHEMICAL

FOREIGN

corn exchange

Available

on

DEPARTMENT

MEMBERS NEW

CAIU:

YORK ANO AMERICAN

ON

Members

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Bond Dept.

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Members

the

Stock

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Chase Manhattan

Exchange

bank

YORK 5

Commission

Orders

McGregor-

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BONDS & STOCKS

Doniger, Inc.
Analysis

On All
our

Canadian Exchanges At Regular Rates

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Exchange

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and Financial Chronicle

The Commercial

2

The Security

Corporations and

For

Investors

Institutional

I Like Best

LARGE'BLOCKS

in the investment

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

participate and give their reasons

SECURITIES

OF

for favoring

nationwide

our

wire

sell¬
Over-the-

of

blocks

large

ing

are

facili¬

helpful when buying or

ties

Counter securities.

they to be regarded, as an offer to

intended to be, nor
sell the securities discussed.)

Troster, Singer & Co., New
Great Western Financial

our

wire system to

lead¬

direct contact
brokers and dealers

ing cities we are in
banks,

with

throughout the country.

New York Hanseatic

S.

GEORGE

PAULEY

MILTON

Executive

York City

ROOKER

Bought——Sold—Quoted
Incorporated

Georesearch,

Vice-President, Keith Reed

&

Company, Dallas, Tex.
Member: Investment Bankers

Corporation

Co., New Yorx Guy.

Singer &

% (Page 2)

r

—

George
S; Rooker,
Executive
Vice-President, Keith Reed- &

•

Co., Dallas, Texas. (Page z)
Members New York Stock Exchange
Members American Stock Exchange
:
Association of America
;
best de¬
P:. 19 Rector St.. New York 6. N. Y. /
Financial Georesearcb, Inc.
HAnover 2-0700
NY 1-1557
Juan
Exploration,, J DeGolyer &
Corporation, The Security I Like
A large element of "luck with MacNaughion,
and United Gas„. New Orleans, La. - Birmingham, Ala.
Best, since to my knowledge it is
the bit" is necessary in the search Herbert Morriss, an MIT trained
Mobile, Ala*
the only sav¬
Direct wires to our branch offices
for oil. However, the importance engineer, is President of Geox eings and loan
of this can be reduced with proper spgrch. Tno
^as
for manyv
company
geological and
years with United Gas and Union
whose
equity
geophysical -'
Producing Company in charge of i
securities are
data and the
^SSmL
investigations of/methods of find¬
actively
interpretive
traded.
And
ing r oil
and
gas.
Gbbrge- C.
Western

Great

scribes

*

.

.

these shares
Established

Stock

York 5

PHILADELPHIA

this

informa¬

$6, possibly $7
i n 1956, and

tion

and

this

is

not

tractive

skill

sell at the at-

Principal Cities

of

available

price
Over- i

the

RIGHTS

&

SCRIP'

MeD0NNELL&(b.
Members

H

|g
m

New

>
120

York

Stock Exchange

'

;

American Stock Exchange
BROADWAY, NEW YORK 5
TEL. REctor 2-7815

V

;

Trading Marketa

Air Control

Products, Inc.

Company

Telephone Co.

it

$18,278
search

Lynchburg, Va.

•

•«

LD 33

Tele. LY 62

Trading Market

EASTERN
SHOPPING

CENTERS, INC.
;

Common and

Rights

*

24th among the mo^e
6,000 savings and loan asso¬
ciations in the United States in
than

it is

1954,

in

now

nationally,

16 th

California and continuing

outgrow the industry. For ex¬
ample: assets increased $37.7 mil¬
lion
in
1955, a rise of 41.6%
against the 20% showing of the
savings and loan industry (of the
U. S.). True, this may appear only
logical inasmuch as Los Angeles
has been
outgrowing the entire
country with, for instance, some
700,000 new family homes built in
the last 10 years, a population in¬
creasing 500 daily and a 1954 (and
expected
1955)
record
showing
Los Angeles County built more
homes than in any State in the
nation. Nonetheless, management
points with justifiable pride to
their better-tban-average achieve¬
ment, since the area is also served
by 91 other competing savings and
loan associations. For that matter,

competition

ESTABLISHED

37 Wall St., N. Y.

1929

Tel. HAnover 2-4850

Oil men generally believe that
the large fields having obvious
stock¬ expressipns of structure existing

is

almost

;fcbmpariy,'louritied in 1952,

welcomed

this

area

the

benefits

no

of

their

services."

in which the company oper¬

been found. It is now
susoected that most of the oil to
be found will be either in smaller
graphic traps. Such discoveries
will require the ultimate in quali¬
fied data and the ability to inter¬

pret these data. More than ever
before, the companies with the
best technical knowledge and ex¬

The

prospect is then drilled at a

write

stock.

Drew

Cornell,

Inc., an independent engineering

barrels

at

June

low

cost to the

Established

■

Home

Office
&

Brokers

111

Tokyo

Ltd.?

X897

—

^

.

Branches

70

-

Bankers

Investment

Broadway,N.Y.6 COrtlandt7-5680

Firm

Trading Market i

Maintained in

—■

DELHI

CANADIAN

PETROLEUM, LTD.
Common Stock

WISENER

and

COMPANY
\

LIMITED

73 King St.

Wast—Toraata, Canada

for

As Underwriters

SEABOARD
INC.

CO.

DRUG

MERICIN)

(owners and distributors of

Originally Offered, at $1,00
Per Share

-

t

.

V

iH •

WE ARE MAINTAINING AN

ACTIVE TRADING MARKET

com¬

with the company retaining
half working

the order of one

on

The
the

CONTACT US FOR DETAILS

Prospectus
yv

prospect.

interest in the

company's

contribution is

prospect;

leased

packaged,

This program should

the .money.

If, as one writer very aptly put
May 30, 19o6, 109,604 barrels had permit exposure to a large num¬
it, water seeks its own level, then
ber of drilling deals, and since the
investors usually seek the highest been produced, or approximately
is
small,
discoveries
level
safety being equal, of 10,000 barrels per month net to company
course.
And in this case, Great the
company's interest. Because of should have a noticeable effect on
Western's savings accounts are in¬
remedial and development work the market value of the stock.
sured up to $10,000 by the Federal
In addition, the company is con¬
done since acquisition of the prop¬
Savings and Loan Insurance Cor¬
poration, an agency of the United erties, the company's chief geolo¬ stantly reviewing producing prop¬

and Literature

Available

-

FOSTER-MANN INC.
40

supervision of drilling, completion
30, and operating; and a portion of

1955. At the eleven months ended

Yamaichi

•

pany,

$400,000 cash and 80,000 shares

1,443,056

or

Securities Co.,

large fields, in strati-

fields or, if

Jackson, Miss., for a consideration

at

information

current

ates, have

relatively

Company

longer need to foster

area,

ties in the Wilcox Trend area near

common

.

For

Texas-Louisiana-Arkansas

J-O

states: firm, appraised the properties, in¬
"savings and loan associations in cluding behind-the-pipe reserves,

the

as

the

in

Company; owners of proper¬

of

appear to be stirring due r
improved Japanese economy.

now

to

Call

at a recent date. Geore¬
stock is well distributed,

of all of the common stock of

of

remaining at practically
stationary levels for three years

condition.

purchased Texas Eastern's interest
and began doing business
as a
separate entity. The company was perience should have the greatest:
allowed to retain the full use of success.
all the information and prospects
The staff's method of sifting out
it
had
developed
under Texas
prospects is not unusual, but it is
Eastern control. John A, Crichton,
probably as.thorough and system¬
who
is
how Chairman
of the atic as that of any of the majors
Board, foresaw the potential of¬ operating in the area. Exploration
fered by this information pool and
prospects are first located by a,
by the well trained and experi¬ continuous regional mapping and
enced geological and geophysical
geological study. These geological
staff already working as a team. leads are then checked through
He proposed the formation of a use of
geophysics. Leases covering
publicly owned exploration com¬ the possible productive area are
pany into which would be added obtained to the best economic ex¬
sufficient producing reserves to tent. When the prospect is ready
sustain the exploration staff. The to be drilled, the management ob¬
company negotiated the purchase
tains
participation from others.:
Oil

S|

STOCK

.The company

financial

being, about 1,300
holders in some 20 states.
The

.

after

dustry.

shares out of 600,- was originally a 50% owned sub¬
000 outstanding at 23
and for sidiary service company of Texas
all practical purposes, this was the Eastern Transmission Corp., or¬
first real opportunity offered the
ganized for the purpose of devel¬
general public to participate in oping prospective; drilling loca¬
what heretofore was the generally, tions for its parent using known
inaccessible (and prof it able) and
experimental
prospecting
banking field of Savings & Loan methods. Last year the company

2nd

the

throughout

offered 500,000

since,

Breeue^iGompanu

-

oil

there,

to

Scott, Horner &.
Mason, Inc.

to

widely known
oil and gas in¬

is in very sound
At a recent
Inc. is an op¬
date, current assets were $643,374
erating
oil
(of which $516 428 is in cash or
company
government bonds). Thus net
which combines unusually experi¬ working capital per shaie is eauaj
enced technical management, good to $1.12 per share. The net cash
production, and excellent drilling throw-off
from
the producing
prospects under a capitalization properties currently averages
consisting solely of 560,000 shares $18,000 monthly, which is ample
of low priced stock. The company to sustain fully the exploration
has no long-term debt outstanding,
department and to add regularly
and current liabilities were only to cash reserves.

Ranked

Alabama-Tennessee Natural
Gas

as

operations. It was incorporated in
May, 1955 as a holding-company,
owning
in
entirety
the
Great
Western Savings &, Loan Associa¬
tion of Los Angeles, The Great
Western Management Corporation
and, 22 (now 23) escrow or real
estate companies. In August, 1955
Lehman Brothers and associates

Associations.

Bank of Virginia

Southeastern

not,

Great Western Sugar Corporation.
Obviously it is a financial com¬
pany, which in fact only recently?
inserted the word Financial into
its title to more clearly define its

Since 1917

U

should

Several other directors

of the company are,

Georesearch,

occasion, be confused with

on

J

IA PANE S E

was

company

Carter Oil.

i

company.

Milton Pauiey

GWFC

Market.
has

small

the

33%

about

in

generally

-

the- Counter

Specialists in

of 4he

of

SAN FRANCISCO

*

to

Wires

Vice-President
previously,
associated with Union: Producing;
Company as Assistant Cmei
Geophysicist and. formerly with

Howard, Executive

Unfortunately,

CHICAGO

v

t!«,

the

operator.

with

1955,

of

skill

*

$4.87

indications

Teletype NY 1-40

vBOSTON

Private

in

Exchange

120 Broadway, New
WOrth 4-2300

'

earned

Member

Associate

American

1920

j*

q

SHINER, ROUSE & CO

unique"

"Particularly

Through

Louisiana Securities

Great Western Financial Corpora¬

(The articles contained in this forum are not

find

Alabama

:

ctions

tion—Milton Pauley, of Troster,

corporations will

and

Institutions

i^rtlcJpauts and

Their

particular security.

a

Week's

This
Forum

A continuous forum in which, each

/

v,Thursday^ugus^6^956

..

(678)

EXCHANGE

PL., N. Y. 5, N. Y.

Telephone: *BOwling

Green

9-7900
-1945

Teletype:

NY 1-3507

—

LAMB0RN & CO., Inc.
99

WALL

STREET

NEW YORK

5, N. Y.

States
it

GWS

SUGAR
Raw

—

Refined

—

Liquid

Exports—Imports—Fat area

DIgby 4-2727




Government.

does
&

in
L's

a

high

Operating

interest

interest

rate

on

as

area,
sav¬

gist

estimates

reserves

have

ac¬

tually improved since purchase.

The
company
is fortunate in
ings accounts is characteristically
high at 4%, raised from 3V2% having a management with many
July, 1956. In all likelihood, this years' experience and excellent
latest rise was triggered by gen¬
reputation
in the oil business.
erally harder money but is con¬
sidered by many bankers to be a Jack Crichton is President of Oil
welcome necessity. Opinion seems & Gas Property Management, Inc.,
to be that higher interest rates and
previously was connected in

Continued

on

page

16

an

executive

capacity

with

San

erties offered for

leverage

is sufficient, will either

purchase

or

with allied
chase

of

sale, and if the

participate,

along

companies, in the pur¬

the

Market

and

is pres¬

ently selling at a price of 2%. It
is

most

'

OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
14-Year Performance of

35 Industrial Stocks

properties.

The stock is traded in the Over-

the-Counter

N. Q. B.

suitable

as

a

speculative

investment for individuals.

FOLDER

ON

REQUEST

National Quotation Bureao
Incorporated

46 Front Street

New York 4,

N.Y.

Volume 184/ Number 5560

.The Commercial and Financial
Chronicle

(679)

A

t

•

*•

.

» <

Of

3

■ ■

'

(

(

'

A

t

U.S.Foreign-Investments
By EMILIO G. COLLADO*

Treasurer, Standard

Oil

Co.

(N. J.)

From the point of view of an American
investor, Mr. Collado^
offers several suggestions and clarifies some
improper notions
regarding extent, difficulties,- mutual helpfulness and misunder¬

standing of U. S. investments

made abroad.

Social Realism

forthcoming study estimating U. S. gross
investment, in pointing out the misleading effect of net data;

in; believes comparison of

current

gross

earnings outflow

r

-for
I

1956.. Of

V"

this

60%

or

of

ap-

million,

the

scheduled

for

invest¬

ments

der

plant and
equipment
and

i ri

b

Emilio

f

/

G:

1

i

e

e

n

at the

1

vV

e

original

v

1

e

i

sizable figure

a

be

on

ments

of

only

fraction

a

ing abroad I have

"

in

of

comparing

$725

-1*.

just

HYCON MFG.

/

'

'/

v.*.

3'

■

This so-called

t£

v

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h'..>

'

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•{••••.■..#

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.

J.F.Reilljt&Co.,Inc.

: r- - M%; \ C:■f

42

met

even

capi-/

Stocks.^----18

of foreign exchange.

Included

'

investments

by the foreign branches

v

-

;

Teletype NY 1-4643

Bookshelf-^-i-i.----—

Coming Events in the Investment Field
^
-i
■■">*/«' !
f
/•/.-,v;
Dealer-Broker Investment Recommendationsi_i_j;-_..-__2l.
i,
I '-,
T-'/r'i:
Einzig: "Sources of Sterling Strength Today and the •
>
/

r

purchases by direct .investors
are.some

Man's

Broadway, New York 4

DIgby 4-4970

present

implies, that is, the

of

in

U.

S.

'.-"'r?

without

•

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corporations made out of retained

earnings

*,V M.-

-.*

■

v":Regular Features

Business

branch

STANCAN

URANIUM
11

V ^ •-..

* .•

•

v

meaning.

name

4

accompanying!'

the figures

million

:

Cover

Cobleigh——

Dies

^

'•

M

Bank and Iiisiirancc

what its

been interested

the

'.:r

Terhune

•"

»

y

I

tal outflow does not

-with the recent totals for all U. S.

'direct

in'the

seen

net

of the U. S. industries invest-

-one

Everit B.

S.

-

-

figure represents the invest-*

'

U.

suggest that this was a
decline in a figure with no clear

the >• many-zero-ed
figures / of
U. S. Government finance. Since

this

that

table.

t

even

who spent years at work

one

effect

Rights

HAILE MINES

-

(See under "Railroad Securities")—Gerald D. McKeever 12

ment, declined

n-

T

-Portents in the Rail Picture at the:Half-Year

private investby $75 million in
creased
by'1955.. Reference is being made to
Jater budget the decline from $761-million in
^ additions, but 1954 to $686 million in 1955, as can

Coilauu

seemed like
to

has

to Income—Ira U.

'

Recently, for example, there' has
been considerable
publicity to the

Already -this
amount

•The Rail Way

to

search for oil.

■

-

SHOPPING CENTERS

the

bution of U. S. private
investment
economic development abroad.

the

EASTERN

:

13

—.

•

(Articles especially written for the
"Chronicle")

to be

in

t

.

.'ys

;

resulting figure unsuitable
used, as it usually is, as the
principal indicator of the contri-

abroad

SHAWANO

-

Railroad Executives Discuss Industry's Outlook

wrong,

*'

Firm

•

>

Trading Markets

14

•_

of

use

investors

abroad.1
This the
Froni Washington Ahead of the News—Carlisle
foreign exchanges.
Even if
Bargeron..-- 12
comparison offers a surprise at- such/investments- were
allowed
first glance. In
r: Indication^ pf pwhrent Business Activity^'-1
i r. i.'42 "•
1955, the net out- for, the resulting outflow figure
flow of direct private investment would
not be indicative of .the fort ^ftitual
from the U. S. was
only $686 mil- eign exchange assistance given to
41:/:'
-lion according to the
preliminary foreign-areas by the new U. S.'X
J^ewsf" About Banks .and..Baiiker?^.-^-^- -------15 '/
estimate 'of the; Department
of direct investment.
Normally, for
1
Commerce.
At first you
might example, the income equivalent to
^
wonder whether there has been
depreciation could, have resulted
an .error.' The
answer
seems: to
in a foreign exchange drain if that a Our Reporter^on Governments ^^_i__i___<_-_____—32
v/
:,.,:
f.j
\.'"v
be, however, only that there is a income had not been reinvested, \
<i*/

/////inover

<

•

•

;

:

-

•

350 Unlisted Stocks ;

•

"

db^etv$tlons-^Ai-'Wilfred"May^>^-^w*ww------!:-/----i-!j-.i—i

'

.

Beam

,

•

.

difference,
ence

important 'differin definition " /
•
an

Similarly- the t.investor
would have been free

'

/Our ReporterVReport/i--i_---_^

normally

to withdraw
f
private investor speaks through / the
foreign / exchange'/
of the investment he has made in market funds
equivalent to the re- 7.
air area
during
mally refers to
.

•

}* When

—ii/L—43

SecuritlesL—i-L—-_

Public Utility

———

;..

25

a

Railroad Securities

Securities Now in

'—i.—!

HA 2-0270

investment expenditures
hot r deduct • the amount

of

-

Teletype NY M825 &1-4844?

Registration^———34

losses Jhd
ing

in

the
the

ip^yJhhye sustained
year

on

his

/

.

^

any tained -earnings to net outflow-—
durr that i», the additiah^Of if64priiil^ ^ Securities
lion to $701 million in 1954—does

He

does

might

have

a figure of somewhat Clearer
meaning.* The figure purports to.

re-

~

ceiyed during the period from sale give the increase during the*year
matured rinvestments' ih .the "in the value of
investment abroach
area.
He
does
not
deduct
an
I say^. "purports" since no recogf
amount equivalent to the depre-1 hition is given- to
any appneciaciation and depletion on - all his tion in the value of
investments
existing investments in the area. in place.
of

•

He

does

equal
of

to

any

in the

not

the

deduct

area.

-

amount

an

>

reinvested

earnings
incorporated

subsidiaries

«

•

Gross

•

—i

—8

;

,

;

.

•*;

-

Figure

Provides

Investment

Picture

nor

*An address by Mr. Collado before the
Ninth " International
Banking
Summer
School, Rutgers University, N. J.

Real

*

-

-1

—

16*

For Worthwhile

2

——

4

1

Washington and You^^-'_-i-f—

is
■

as

44
^

SOUTHLAND

*

*See

"Boomland

Venezuela^

Self-Supporting

Oasis"

page

>5.v

/'/

WOUld

as

be

'i

COTltlTlUCCl

CORP.
,•

071

Around

have specialized in

The

?•

J

■"

25

New York Stock

•

Boston
•




and

•

TELETYPE

Chicago

Schenectady

N.

Glens Falls

Y.

1-5

:

New

2-9570

York 7, N.
to

'
•'/"

SEIBERT,

records,

corporation

and

city

news,

news,

Chicago

Offices:

3,

111.

135

clearings,

(Telephone

STate

Salle

St.,

2-0613);

Union,

$60.00

per

year;

of
Canada,
$63.00
per
Countries, $6,7.00 per year.

Other
Bank

and

rate

S.
of

in

year.

modern

Record

account

of

the

—

Monthly,
extra.)

fluctuations

of

in

exchange, remittances for for¬
eign subscriptions and advertisements must
be

made

in

New

York

funds.

built

was

$1,000,000.
Scheduled

Since

creased

at

cost

of

over

Eighty-day Track Meet

Opening Aug. 30.

1945

greyhound

beauti¬

most

greyhound racing

annual

racing

from

2

attendance

tracks

million

to

has

at

in¬

over

8

million.

Send for latest Report

Publications

Quotation

$40.00 per year..(Foreign
postage

Note—On
La

track

Febru¬

•

Dominion
Other

etc.).
South

matter

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in
United
States, U.
Possessions,
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and
Members
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1956

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Subscription Rates

Every Thursday (general news and ad¬
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plete statistical issue — market quotation

Worcester

Reentered

Southland, America's
ful

ary

9576

SEIBERT, Editor & Publisher
DANA

Dana

Company

>

Y.

B.

$1.75

Eng¬
•

Copyright 1956 by William

COMPANY, Publishers

Thursday, Aug. 16,

state
•

D.

'

C.

r

CHRONICLE

DANA

Park Place,

WILLIAM

Exchange

•

B.

HERBERT

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 24300

Nashville

1
Drapers' Gardens,^ London, E.
land, c/o Edwards & Smith.
•:

-

Reg. U. S. Patent Office

REctor

Spencer Trask &. Co.
Members

Weekly

COMMERCIAL

FINANCIAL

WILLIAM

25 BROAD

Twice

'

PREFERRED STOCKS

J

Common Stock

page oU
Published

For many years we

i

RACING

,v

the

\

^

11

-

figure

significant

'>

*

Speculative Profit

;

*

:y.

:

The -Security 1 Like Best—J-—--r

In my view neither the outflow
the increase in value

>''-Si*// >■,".^^

~*l

Albany

to /

Chicago • Los Angeles

.

mm*

Salesman's Corner——

The State of Trade and Industry-::—

■

'

38

The Marked; / ; and Yon—By Wallace Streete-i-I-:—_::

£ive

deduct

not

•

any- -income

Direct Wires

/ /

Philadelphia

investments

he

area.

Prospective Security Offerings-i--i-^—--^——w--l——

-

40 Exchange PUN.Y.

.

-

12

'

•

8

DEVELOPMENT

.10

r

"...

5

7

Industry;

*

WALL

STREET, NEW YORK
/Telephone: WHitehall 4-6551

,

Stock &

private investment in
The, deductions do not make

calculation

3

9

Heilbrunnil^iL*--.

About the RaUroad

but I sug¬
gest that these deductions do ren¬

1

was

Let's Stick to
Fundamentals—Robert

were

.

•

Obsolete Securities
Dept.

-

Consuming?—Roger W. Babson

on

means

'

99

__

Labor Monopolies and Their
Growing Menace
—Donald R. Richberg--i\T^L_„\ii_

direct

proximately .1955.
$725

deductions

-

obsolete*

on

of mind for you!

•

Cover

Are Consumers Tired of

the other hand, in the
calculation of the published
fig¬
ure of $686 million for
the outflow

amount about

:

these

"

^

-.American Business Abroad and
the-National Interest
'*—Hon. Herbert
Hoover, Jr.
—1

education program and reform to
improve investment climate.
of

Russia Today

war

peace

Page

!

Boomland Venezuela:
Self-Supporting Oasis—A. Wilfred May

to

investment inflow, and U. S. inflow of funds to
outflow, 7
improper; discusses Randall Commission
recommendations,
in decrying the lack of
legislative and treaty accomplishments, C
and the gap between
preaching and practice; and urges public )

All

Soviet

II_L 1

current

made,

in

:

A Realistic American
Viewpoint of U. S« Foreign Investments
-! W —Emilio G.
"Collado—_

is

Last November the
company for
which I work announced an investment estimate of $1.2 billion

Seen

as

K;—Ted Hallock

refutes: incorrect
'Contention/ by economics professor-friend,
that oil companies fake out more from
Venezuela than they put

Oyr

Articles and News

Approves Depart¬

of Commerce

ment

WAR AND PEACE

I NDEX

General Investing Corp.
Members

American Stock Exchange

80 Wail St., New York 5 • B0 9-1600

The Commercial
4

and Financial Chronicle

.

.

.

Thursday, August 16, 1956

(680)
with

Income

The Rail Way to

of

the order

in

dividend

a

$4 surely not incredible after a
small bank loan has been attended

has

Maryland

Western

to.

Steel

J
!<

>.

t

: : By IRA U. COBLEIGH

;

J

<■

J

c

,

}-a\"• sH■: VlJ:

#

and future of certain railway

about the position

Some notes

common
stockholders. Perhaps patience, in
this instance, is now in line for

Enterprise Economist

*'/*."'SM':\

its

of

patience

quire

Retail

State of Trade

of delivering

have been
Fifty years
ago the port-

and the West.
To illustrate, among the

would

stocks

headed by rail issues.

of

folio

a

invest¬
(if
they had had
one) would

major

ment trust,

have,

no

doubt,
i nNorth¬
ern
Pacific,

cluded

&

Baltimore

Great

Ohio,

Northern,

Pacific,

Union
as

well

Adams
Ira

U.

Cobieigh

press

Co. and

Pu 11

Palace

m

a

n

related

railway

Co.,

Car

as

Ex-

enterprises. Such a list of equities,
back-dated half a century, defi¬

since 1946,

Denver & Rio

Grande

advanced

and their

now

Honeywell, Owens-Corning Fiber
Glass, or Phillips Petroleum.
] ; i growth stocks, but, in this group,
With this historical nod to the you can find some honored car¬
riers with long records for high
changing fashions in investments
solvency and dividend constancy
(as well as vestments) let's scan
which look better today than a
the current railway horizon and
year or two back. Take Virginian,
see what the passage of years, the
the most efficient in the business
dismal bankruptcies of the 30's,
of hauling coal. It earned $7.12
and the dramatic modernizations
and dieselizations of the 40's have per share in 1955 and paid $3. This
done for
this ancient, and re- year it earned $3.95 in, the first
five months (against $2.06 in 1955)
surgently, honored industry.
and should deliver at least $9.25 a
The War phase is by now, Old
share for this full year. On this
Hat—heavy traffic "revved up"
basis, a year end extra of at least
earning power with maintenance,
in many" instances, neglected and $1 is probable, and $1.50 possible.
On
a
$4 dividend VRY yields
deferred; and rolling stock and
5.7%.
motive power desperately clamor¬
Equally, we think Chesapeake
ing for replacement by the end of
&
Ohio, Which earned $7.25 a
1945.
Came 1946—and a razzle dazzle share last year, can cross $8 for
and
increase its
dividend
rail year in the market. The rails 1956

SP has been unable to
net

showed

1955

and

a

mention

for

time

this

at

in

There

changes in electric power output ranged from a decrease of
Mid-Atlantic region to an increase of 14% in the South
Central States. In the nation as a whole output was 2% higher

year

5% in the

than

a

$4

above

earn

this week, they

a

last year.

total employment hit 66,700,0,00 in; mid-July to
record for the second straight month, according to the United

set

a

States

Departments of Commerce and Labor.
•'*- v
Commerce and Labor departments said the

The

job-holders increased 152,000 over:

for
two

over

number of

mid-June and rose 1,600,000

mid-July of 1956.

This total, the two
workers on

agencies reported, included about

vacation and almost 500,000

5,500,000

others on strike. Since the

taken in mid-July it did not reflect the full effect of
the nationwide steel strike which ended recently.
Unemployment, the joint report stated, was 2,800,000 or 4% of
the labor force.
This was a drop of 94,000 from mid-June but
was

survey

share,

of coverage

plenty

remained 6% above those of

The nation's

for
dividend. But NP
considerably more than a rail¬
is

year ago.

Paperboard producers reported an output gain of 5%, and
production was close to that of last year. While new orders for
paperboard expanded 41%, they were 7% below those of the
similar 1955 week. Lumber shipments rose 13%, but were 6^>
below the comparable level a year ago.
Although initial claims for unemployment insurance fell 12%

First, it's a well managed
line
benefitting from expansion
in the Northwest and as a railway
which

2%

a

was

higher than that of a year ago. While petroleum production de¬
clined somewhat it exceeded the year ago level by 6%. Year-to-

reasons.

should

2% this week.
rise in coal output, and it was fractionally

of trucks decreased

operating
above $6

comes

this week, as several

preparing for the model changeover , period.
Production was 22% below the comparable 1955 level. The total
output of passenger cars from Jari. 1 to Aug. 4 of this year was
27% below that of the similar period last year. The production
began

producers

possible for 1956. The $3
dividend will, no doubt, be main¬
tained; and a number of railway
analysts feel that SP, by virtue
of its diversity of earnings sources
(including oil, lumber and pipe¬
lines), and its excellent and ex¬
panding territory, is now in a
position to move ahead. The at¬
tractive
current
yield, is
some
solace for long range buyers here.
Pacific

and trucks fell 4%

The output of cars

looks

Northern

inventories to cover model changeover

but have adequate

ders,

needs.

figure of $5.71 (against above $6
in 1952 and 1953). Management is

:

industrial conditions

operations rose to 52.4% of capacity. Although output climbed
199%, it remained 40% below that of a year ago. Several steel
producers announced a price rise averaging $8.50 a ton. The lim¬
ited supply of structural shapes and steel plates is expected to
curtail construction operations and freight car building for the
next month.
Automotive manufacturers expanded their steel or¬

expand its
per share

working on increasing
efficiency, and net of

commentary on general

to Aug. 8 Dun & Bradstreet reports that a sharp rise in steel
output this week boosted total industrial production to a level
noticeably higher than that of the previous week. However, pro¬
ducers of steel,
automobiles, and lumber continued to report
considerable year-to-year output decreases.
Many steel-workers returned to work this week, and steel

more

their falling from grace,

J

In-their weekly

Whatever

transportation.

in

.;

\s-

Louisiana
horizontal

curving Northwest from
to
Oregon, is like a
trust

Index

Business Failures

..J

and Seaboard commons

partial restoration to favor—we
present some values culled
from today's markets.
•
We mentioned the coal roads.
Minneapolis j!
We would hardly plug them as

Mining,

For the

have both way you want to haul stuff, they
than 1,000% and have it. SP has 12,500 miles of
Rock Island and Missouri Pacific rails,
trucking subsidiaries with
have
gone
ahead sensationally. over 17,000 route miles; a "piggy
Coal roads such as C & O, Read¬ back" trailer service now three
ing, and Norfolk & Western have years old that should carry 60,000
advanced moderately, while the trailers this year; tie-in air freight
New Haven and the Chicago & arrangements with American and
Northwestern
have
had some United Airlines and Slick Air¬
tough sledding. Despite, however, ways; and finally an 850-mile
this
uneven
performance, more pipeline right along its own rights
rail shares are now favored by of way pushing oil from El Paso
institutional investors than any to California. Networks of, and
time in 20 years, with Atchison, extensions to, this line are under¬
| Union Pacific, Southern, Illinois way and SP has gone a long way
Central and Coast Line among the in implementing the old political
f
favorites.
adage—"if you can't like 'em, join
Switching from this swift re¬ 'em."
view of rails—their early eclat,
For the last three or four years

nitely would not have included
any of this year's darlings—Dow
Chemical,
American
Cyanamid,
Minnesota

"reorgs"

Price

Auto Production

and Industry

yield-minded, Southern
shares; with emphasis- on those lines capable
Pacific, at around 51, yielding al¬
larger dividends.
most 6% on a $3 dividend, has
in population and industrial surge considerable attraction. This line,
Popularity is a fickle thing. —the Gulf South, the Southwest
serving a thriving eight state arc
Time was when any list of com¬
mon

Trade

Commodity Price Index
Food

its reward.

\

Carloadings

.

;

Production

Electric Output

re¬

the $1.80 present

362,000 more than July, 1955. Although workers out on strike are
is
not counted as unemployed unless they are seeking other jobs,
road. It owns timber land con¬
$3.50 to $4. Bituminous coal
those laid off in related industries are included in the jobless
servatively
worth
$70
million;
has decidedly a new look with
so
total.
Thus the figures would include some workers laid off in
owns two million acres of mineral
out in front of the market—so traditional uses in electric steam land
industries affected by the steel strike.
plus the mineral rights to
much so that Penn hit 47%l a generation and steel production
The joint report gave two conflicting sets of figures on nonsix million more. Over 125 pro¬
share and New York Central 35%. augmented by demands for alum¬
farm employment.
Those taken from a Census Bureau survey
ducing wells on this land should
inum
production
and
atomic deliver above
(Today, after toiling for a decade,
said non-agricultural employment rose 300,000 in mid-July to "an
$3 million in petro¬
Penn
is
24
Hence, in
addition to leum revenues in 1956; and the
points lower, and energy.
unprecedented 59,000,000." But the Bureau of Labor Statistics
Central but three points higher.) Virginian; and C & O, Norfolk &
said non-farm employment dropped 700,000 between mid-June and
longer range potential from this
B & O and Western
But the railroads- of the U. S. Western,
mid-July. However, B.L.S. said, non-farm employment at 51,000,major Williston Basin real estate
do not rise and fall by the par¬ Maryland should benefit.
000 was almost a million higher than last July.
is quite exciting.
If you value
Western Maryland in particular
ticular fortunes of Penn and Cen¬
straight railway earnings on a 9
tral. Far from it. A whole new set has moyed up to an interesting times ratio, you arrive at a price
Businessmen reduced their inventories during June but not
of
factors
It has,
after of $36 for NP common. But the
as much as usual for the
month, the Commerce Department retoday determine the point financially.
profitably of carriers — and a years of arrears, now cleaned up stock sells at 41 which would sug¬
ported. June sales volume rose, also not as much as expected.
,
tradition has little to do with it. all the back items in its preferred
The department noted that the book value of business in¬
gest that you are paying but $5 a
Some of the best current results shares, placing, at long last, the share for all the oil and timber
ventories at the end of June totaled $85.2 billion. This was $600,common in line for treatment at
are being turned in by lines whose
aforementioned. Finally the road A 000,000 lower than at the end of May, but $6.9 billion above
cashier's windows.
Western is a
capitalizations
were " drastically the
June last year.
;
,
^
~ , ,
strategic element in a pro¬
compressed in reorganization, or Maryland should earn $11.25 this posed merger with Great North¬ V
However, the report added, the June inventory decline was
whose territories serve those areas year.
The stock at 64 is thus ern and the Burlington. One does
less than usual for the month.
On the seasonally adjusted scale,
showing the fastest growth rates quoted below six times earnings not
inventories registered a rise to $85.6 billion at the end of June
gain the impression that NP
from $85.1 billion a month earlier. v / . ; \
is overpriced.
Total
manufacturing, wholesale and retail sales in June
From the foregoing favorable
iv amounted to $55,000,000,000, the report stated.
This was $300,comment about certain issues, it
000,000 higher than May and $1.8 billion above June last year.

own,) or
it seemed, and rail stocks were

had

back into their

come

from

v

ir-V

•

...

.

_

should not be concluded that rails

Railroad

have'
ture.

Equipment Trust Certificates
*

*

*

an

Far

it.

from

vigorously; i new

Mortgage Bonds

}

.

Guaranteed and

roads

Special Stocks

now

class

first
to

6.851

rates

to

ever

'.i

;

y

■:

■i

'■

S;

V

<

V '

'Uj V

*

INCORPORATED

PHILADELPHIA 9

■

/,/•;;?

sought,

■

dieselization,

layouts,
nages

revenue

plus

up

May to June centered
goods. The book value
' * Continued on page 32

*

r«

;

"

with

(Airline

STATE AND

Rails have

goes

MUNICIPAL BONDS

CORPORATE BONDS

over

LOCAL STOCKS

to labor;

yard

improved

heavy

■1 ESTABLISHED 1*941

45%*,

the fact that

battle

their

but

^

mile.

per

about 6 ^c.)

half

STROUD & COMPANY
*

rates

cents

run

to
"

the month.

find it necessary to re¬

quest higher passenger fares;

Serial Obligations

However, the June

seasonally adjusted inventories from
manufacturers' holdings of non-durable

in

i

eight eastern

in the offing and

are

most

demands

labor

rise was not as much as the department
So, the seasonally adjusted index
dipped to $54.3 billion from $54.4 billion in May.
•t:
The department further noted that the $500,000,000 increase
-i;'-

considers normal for

and

Trucks'

compete

still

waterways

r

,

fu¬

entirely -unclouded

freight

ton¬
The Robins on-Humphrey

have kept the better man¬

C ompany ,lnc

aged, and' favorably located lines
"

moving-

:Underwriters & Distributors

New York

we've

Pittsburgh,Ailentown-




? '

Lancaster

>

been

their

capacity

Scranton

mentioned

chosen

have
•

The 1 particular

ahead.

carriers

*

to

RHODES-HAVERTY BLDG.

today

primarily

maintain,

for
and

perhaps increase, cash dividends.

-

*

.

:

/

WALNUT 0316

ATLANTA 1, GEORGIA

"...

LONG DISTANCE 421

Volume

184

Number

5560

.

.

.

The Commercial and Financial Chronicle

(681)

two

Boo inland Venezuela—

I
.V

.Points

the government's

out

free market policies, and

eludes for optimum results, they

of

acting combinations with natural

;

cation efforts to date.
nuts

principal
of

economies

.

and

the

Perhaps

largely theoretical.
few

a

other

.

read

"Texas, South America," in
the light of this country's supers u

boom

p e r

Exports of iron
States have

bling from

which
ible

are

in

been

than

more

rose

dou¬

Similarly,

six-fold from

vestment

of

Nicaragua, this is
showing of any

us.

:

,

capital

1950-1953, and doubled again in
following year. Further, large

qualitatively

golden

the

the

increases have been accomplished
in the production of
coal, sugar,

Just

;

and

T But

what¬

the

ever

of

no¬

menclature,
this
i

economy

s

absolutely

its under-dev

1

e

o

sides
as

Wilfred

*

ic

May

interest.

d

Neither

phenome¬
of univer¬

needing

or

any participation in U. S.
(which totaled $72 million to

Latin-America

ended

year

during

June

30

the

fiscal

last), Vene¬

zuela's cooperation from
minor

on

with

ernment

In

a

very

the

Venezuelan

Gov¬

footing the bill.

Another Texas

y,"

*r

another

besides

way,

forebearance from

national- income

has

any

three U. S.

from

two;

heaven.

unadorned

pure

ment

land's

not

course,
of

boom

omitted

securities

market.

total

investment

this

by about

the

foreigners' capital

billion

from

1952-'53

($300

which

equities

on

in

with

the

this land

aid.

But of

course

the greatest simi¬

larity lies,in the dramatic,
and

terial:

behavioristic

and

9%

on

concessions, roughly estimated at
new

oil grants,

very

bank discounts

—

re¬

ma¬

effects

ensuing from the fluid develop¬
ment, by unfettered outside

the

American Securities and Ex¬

to

Gulf Oil

mated,' at

about

10.1

bolivars.

>

are

paint companies (being
some

many,

.

new

think).

plastic
in; with

com¬
over¬

and fis.i-

dated-*'with

Hemphill, Noyes &
West Sixth Street. Mr.
Cole was formerly Los Angeles
manager for Francis I. du Pont &
Co. and prior thereto
was/ with
Shearson, Hammill & Co.
; /
r
J.
Pierce Gannon, Jr., previ- ously with Harris, Upham & Co.,
Herbert L. Brackney and Burton
Co.,

ones

in

mark-downs, partic¬

the

fered issues.

of

case

newly-of¬

(Special to The Financial Chronicle)

;

;

CLEVELAND,

Unto Him That Hath Shall Be
Given
./:'/v/';, y;.
One

A.

the

of

most
interesting
developments, appar¬
ently, is the translation of pros¬
perity into policies pursuing the

Venezuelan

free

market.; We

in the tax
ernment

banking
The

rates

have

and

attitudes.

is

There

has

been

no

external

$544

million.
The

or

Exchanges.,; Mr.

gov¬
Commercial

in

in private hands.
i
companies are pri¬

electric

vast

a

natural

re¬

the

States

the ,turn

at

of

the

Her electric power out¬

has increased ten-fold since
1938; arid bids fair to double dur¬

put

ment-subsidized) is in the works.
now

nually.

imports 500,000 tons

A

new

an¬

railway system is

Ah

expected 300 million bolivar troleum Deity watching over it.
surplus turned into one of 500 Sixty per cent of the government's
million, in 1954; andin 1955 there revenue is supplied by the oil in¬
was a

balance of 311 millions.

The Favorable

Weather Tax

projects

MILWAUKEE,
Reed

The income tax assuredly is a
bell-wether for the free economy.
With
slight
progressivism,
the

Bethlehem

Steel

rate").

The

subsidiary 50,000

shipments since its establish¬

ment

in

1951, and is about to be

comes

bolivar

rate

Water

^

become

Wis.

—

Mr. Reed

Street.

($15,000)

the

of

North
for¬

was

Milwaukee Company. Prior
to he

was

with Ames,

there¬

Emerich &

Co. in Chicago.

unions

but

are

this

Joins Courts Staff
ATLANTA, Ga.—James J. White
has

government supported:

situation

is

to

be

(Special to The Financial Chronicle)

>"v

kept

Co.,

11

Marketta
of

members

conclusion,

most

90%

a

of

Venezuela's

the

Exchange.

.

Street,

the

her oil production

United
are

total

value

New York Stock

//U/'r'

V

always

the

have

and

trying to exploit

more

ever

of

the great opportunities down here:

exemptions,

the Germans in public works and

$225

The effective rate on, for

Railroad Securities

such things as scenic railways and

trading.

The Italians,

the Germans,

in

as

well

a

i/'/i,,

i

as

are

miinon mill

$3b0

Underwriter

♦

Distributor

Dealer

nere

1954, while, in
petroleum

the same'year
put in, in the
normal course of events, $82 mil¬
lion in capital outlays.
/

:

announce

that

JAMES G. COUFFER

Diversification

the

arid

Government

;

is

now

associated with

our

firm

in the New York Office

The country's
high policy, as
emphasized to by leading govern¬

V

officials

here in Caracas, is
long-range policy of
diversification, through "oil sow¬

ment
to

pursue

ing,"

in

other

Drexel & Co.

is

PHILADELPHIA

lieu

30 Wall Street

where

government

private

business

the

foreseable

August 15, 1956

future,

such
*^

••




——

r*r—-

;; ~

r

y

BOSTON

CORPORATION

money

going into public works, hous¬
rural
electrification,
etc.,

undertake

—

FIRST

conspicuous, or
consumption.

of

intensified

ing,

NEW YORK

1500 Walnut Street

The

a

Considerable

1 ■

.

■

■■■

job.

the

diversification

not

for

the

degree

bids

be theoretical. This can be

-»<-v

^K

will

But

w*

■*'

«■J

*

-

j

\

>-v>

ji

New York
Philadelphia

Boston

4

"

Chicago

Pittsburgh

Cleveland

-

San Francisco

of

fair

to

readily
?:<•

.

1

U

:'/-?/

Creole

pleased to

I

of
being exported.

countries, / besides

States,

structed

are

W.,

N.

exports; with 95%

trying to get in
surpassed by United States example,
the 10-14,000 bolivar on the
public works boom, and
Steel
Corporation's
operations. bracket, for a married man with Italians are most actively explor¬
ing a steel mill.
The U. S. Steel Corporation con¬

We

&

joined the staff of Courts

coun¬

income,

far

teJ;

S.

Roy

associated with

merly with Bache & Co. and the

to the latter
the latter produces

highly confidential.
indirectly, and l/.
Perhaps the broad

or

80%

over

top v: Other

on

to only 715 bolivars or

dollars.

a

(not the "effective

effective

has been rapidly stepping up iron after allowances arid
ore

has

The Marshall Company, 765

over

as soon as

y

Marshall Company

V

try's total foreign exchange needs.
Petroleum exports amount to al¬

Policies

rate of but 28%

Progress In Steel

dustry, directly
likewise

maximum "surolus" exhibits

being built.

A

,

(Special to The Financul.Chronicle)

ized,'-because; its s e r v i e e was
wfetched, and the former British;

internal debt since the early 1930's.

ing the next decade. An enormous
steel manufacturing plant to cost
$200 million (temporarily govern¬
She

.

Roy Re^d Now;With

—

century.

for¬

was

r

,

United

Probst

trading department.,.

y

national-

someone able and
willing.
y; The answer, of course, to the
The labor situation, with an ab¬
They have enjoyed an unquali¬ uniqueness of 'these great, and
It is probably no exaggeration
fiedly hard currency — of three dramatic showings on both fronts, sence of troublesome unions
to say that Venezuela today is en¬ bolivars to the
dollar; and now a has been the great petroleum- with their potentials for troublejoying an era of development 150% gold cover. The budget has drenching the economy has re¬ making—is most favorable. There
fully comparable to that of the been in balance year after year. ceived. This territory has a pe¬ is no active unionism. The sparse

of

sources,

source.

associated

all

phone' system has been

just

Deity/

Richard

—

merly with Gottron, Russell & Co.

similar

vate wherever possible. .The tele¬

own

Petroleum

Ohio

become

the New York and Midwest Stock

this

seen

has

Probst

with Ball, Burge & Kraus, Union
Commerce Building, members of

with private owners, and turns its

being the watchword.
~

510

| Richard A. Probst With:
;<
Ball, Surge & Kraus >
/;■::///'{f:

drastic

ularly

change Comriiission. Any regula¬ Venezuela's holdings of gold and proprietary company couldn't af¬
tion
occurring, either ' through foreign exchange, unique among ford the expenditure for equip¬
ment. The government never gets
self-policing, or banking influ¬ her:, neighbors,, have
increased
the
position of
competing
ence, is concentrated on the sale since 19^8 from $378 million to into
of new issues with caveat emptor

co¬

Francis 1. Da Pont Go.

capi¬

tal investment is expected to rise

low, $300 million. These

are very

been

9.9 billion bolivars

billion; 12.3 billion bolivars
1954; and 13.3 billion bolivars

Reflecting the growing market furtherby one billion /bolivars
activity, since its establishment in ($300 million), plus the receipts
1947, a seat has risen from 1,000 of expected newly granted oil

', Yields

chain,
the

and

resources,

and may well be heading for re¬
adjustment. Already there have

rose

bolivers

in 1955. In 1956 the over-all
;

bolivars to 200,000 nqw.

natural

with; the
operating at only
30 to 40% of capacity). And again M. St. John have also become as¬
viewing the comparatively short sociated with Hemphill, Noyes &
term, the/stock market here is Company.
.:/•;:/'■'' ;
sitting on top of a violent boom
existing

to 10.9

stock

?

k

of

between

a

million)

has, of
engulf-

the

.

and

un-fet-/,

and

Cole, Others Jain

levels.

There

completely { untninkable panies have come
possibility of the introduction production in textiles,
(new
plants
expropriation, nationalization canning

The

Stock Exchange Boom

too

TwentyTthree

record

Growing Capital Investment

in¬

since 1936.

And

begets more
-of the exercise

economy

market, the two needed
operating contributors.

expressed

major scale.

on a

quantitatively,

and

manna

Co., Signal, Standard
flects the pervading rush for capi¬
Oil of Ohio,! Sun, and Hancock.
tal gains appreciation,
The American participation iq.the
"p
-In a typical Blue
Chip atmos¬ capital investment flow has riverthe phere there is no counterpart to
aged about-63%,rand now is esti¬

is uniquely Texas-ish in its
pres¬
ervation of the free economy.
.

construction

as

the

ating

both

high rates shortly to
be
announced,
will
assistance
pro¬ paid on fixed-interest obligations comprise a first And initial
pay¬
—1 %
public health, under the
per
month ? on
mortgages ment; and, among others, will go

gram

,

The

reason

Com-

Four big tire companies are oper¬

necessary

technical

ICA,

_

and

creased twelve-fold in the interval

Washing¬

ton has been self-limited to

so

record,

manufacturing plants, business of
buildings, and private dwellings, or other methods of
sabotaging
recent growth as well has been
thie flow of foreign funds.
phenomenal.
v.

econom¬

wanting
aid

the

/

comes

of

serving

an

non

sal

e

In

tires,

Venezuela's

now,

neighbors; be-

t

A.

p

cement,

cloth.

rayon

unique among

,

coffee,

is

worry

for¬

that

free

bit discern¬

manufacturing

renders

reservoir

with

boom

sky.

by
free

the

wealth;

wealth

over the plethora of
shopkeepers,
(Special to The Financial Chronicle)
Compared toso/many other paying
ever; more
exnorbitant
countries unable, to attract reas¬ rents, and never marking up their / LOS ANGELES, Calif. — Cor¬
onably substantial foreigners' in¬ goods at less t.;an a 100% profit. nelius Cole II has become asso-"

rice,

■;*in

a

cloudless

the

for

tered initiatives. An endless

petitipn is coming in, attracted by
the humming boom, at both the

rooted

firmly

:

this

in

becoming

this

Considerable

year to year.

gold production

of

to

effective

no

substitute

"birth"

wealth

are

country below

to the United

ore

,

this

But there

flaws

Mecca for Foreign Investment

CARACAS, Venuezuela — This
dateline could quite appropriately

;

*

from

retail

for

broad

ana

lack of effective diversification is

:

resources.

danger

any

the most effective

con-

then, is that there is

pea¬

tunate

Digestion - Is dn * Order

South

a

exchange-producing /exports.

Excepting

is

national

45% increase in the volume

a

of

All

alongside of oil!

effect

paucity of
exports and a rising export price
level.
Venezuela, once more, is
unique with a stable price level,

'

l\*

the

the

in the half-hearted diversifi¬

seen

-

Exports

American republics is

indispensable in inter-

are

approximately
.

/ Generally,

.yv

Reporting from the "Texas of South America," Mr, May cites
and analizes Venezuela's various oil-flowing boom elements.
Adds v/ord of caution about
possible temporary indigestion,

4,,

is

•

Prices and

Self-Supporting Oasis
.By A* WILFRED MAY

children,

iy2%.

5

»

«

*

chronicle

The Commercial ana financial

6

.

..

Thursday,"August 10, iyoo

-(682)

Discuss Outloofc lor the Industry

Railroad Executives
Continued from

first page

,

^

service, through which we
has been
in opera¬
tion by the end of September.
These, it would seem, are signs of things to come. In
order for the railroad industry to keep up with other
passenger-freight services, it must streamline ics oiferings, and keep the public informed.* It is through this
vein that the New Haven is striving to meet the future.
In the light of the past six months, the New Haven Rail¬
road will soon resume its rightful position among the
join hands with the trucking industry;
extended and we will have 200 additional cars
can

f

recently, top rail¬

plant and equipment,

of acquiring new

management has been talking in terms gi long range
planning—in terms of billions of dollars to be spent
during the next five to 10 years. If these plans mate¬
rialize it will bring great benefit not only to the railroads

way

industry appears

of the

future

in ail, the
optimistic

of the country. All
to be more

but to the entire economy

before.

today than ever

of the railroads to carry out an
adequate program of freight car acquisition and plant
improvement will depend in large measure upon their
ability to earn sufficient net return to raise the new cap¬
ital required for these purposes.
However, the ability

1956, total operating

During the first five months of
increased 9.64% over the

.

corresponding period
in 1955. Freight revenue was 10.63% and passenger rev¬
enue 1.85% above the revenues of a year ago.
These in¬
creases were offset, however, by an 11.53%
increase in
total operating expenses, thus, there has been little or
no improvement in net operating income.
Therefore, if the railroads are to accomplish their ob¬
jective, they must find additional ways and means of in¬
creasing efficiency and eliminating waste and duplica¬
revenues

.

tion.

;

:'

;

help solve one of the troublesome prob¬
lems contributing to depressed railroad earnings, the
Interstate Commerce Commission has recently instituted
In an effort to

Through this and other proceedings the Interstate
Commerce Commission is fulfilling its statutory respon¬

ices.

sibility to promote and preserve a

healthy transportation

the needs of commerce and of

system adequate to meet
the national defense.

Class I railroads

*tion) brake*shod.' The Union Switch 8c Signal division
continued shipments of classification yard and central¬
ized traffic control equipments at a record rate.

main at

accomplished practically a complete turnabout, from
disaster to what adds up to a most favorable outlook
for the remainder of the year. When I became president
of the New Haven last January, the
has

near

railroad

$1,209,545

per

months

six

first

approximately
month.
During the

losing

was

have

we

only

not

in

as

Lugeue

C.

Oduer

an

construction pro¬

istration
We

seem

trains

running

are

high

>

in

time"-percentages.
(For .the
month of June, 98% of the;, com¬
muter trains were on time.)
Safety
has been our first concern; we ha've;f
up-dated
and
increased ; mainte"on

the

/.nance

-

conditions

and

Therefore,

.

insure

to

able to

we are

at this half-year period

say

that the outlook for the New Haven

its

high

(which, because of

rate, short haul nature, cannot neces¬

passenger

sarily be compared with other roads) is

healthy

a

one.

We have accomplished our turnabout; we are ready for
a

hard, aggressive

j, Our objective,
traffic

senger

selling campaign.

well

freight.

as

As

public servant,

a

serve

efficient way

Toward this end, we have

possible.

its public well, in the most

three experimental trains,

which,

test
?

runs as

passenger

Another step

insofar
chase

as

of

These trains will

run.

traffic is concerned

I

When

a

successful

our

our

losses
lines

ice,

railroad
are
we

we

I

rise

was

furnished

these areas, and

Consequently,

long

of.

branch lines in

as

it, but

people

many

a

these
Of

to

the

freight, and,
one.

We

a

now

change has

prefer to

taken

use

of

repair

W. Brown

Warren

degree of flexibility adequate to en¬
able it to compete on equitable terms

with the" balance

transportation industry.

of the

the standpoint of the Interstate Com-

Of course, from

Commission, the mandate from Congress is

merce

being

properly interpreted. Taking either contention at face
value, it appears that something must be done to "change
either the philosophy of the Commission, or if that phi- :
losophy should be deemed correct, to change the Inter¬
state Commerce Act, for although some of the blame for
the

predicament of the railroads can

be placed at the

the fact remains that statutory

feet of railway managers,

the interpretation of those statutory
tations, must bear a considerable proportion of the
cism for the present plight of the railroads.

limitations,

should

or

limi¬
criti-

unusually interested in a statement pre¬
Arpaia of the Interstate Commerce
Commission to the subcommittee on transportation and:
communications of the House interstate and foreign com¬
merce committee on tne subiect of HR 6141, the house
bin which embraces the recommendations of the socalled Weeks Report.
I have been

1955.
of freight cars

sented by Chairman

additionally due to a

freight equip¬

"good, supply, bad

continuing program of

a

further.

them

Deliveries

Among other things,, the Interstate Commerce
mission indicates that in their opinion there has

of new

activity

due

to

car

during

shortages

the

Com-:

been
"transportation problems
and the incidence of regulation." From the point of view
of the railroad man, q iite the onno^ite can be said to bq;
true, for I must consider that the Interstate Commerce
Commission has been unconsciously guilty of over-com¬
plicating both the transportation problems which can be
said to exist, and of over-complicating the incidence of

materially
aid in accomplishing greater carloadjngs late this year.
While temporary and spotty car shortages are expected,
we
do not foresee a prolonged curtailment in traffic

equipment, particularly in open top cars, will

over-simplification

much

remainder

of 1956.

of

regulation.
The basic concept of
where

President, Westinghouse Air Brake Company

Operations for the first six months of 1956 at
Air Brake

Company

there

is

no

to maintain that

substantially

be in a position

a

regulation is that you regulate

competition.

birth of regulation, but

Westing-

produced very satisfactory"

the

the bulk of

again,

areas,
we

for

reason

our

the

the first




Sales and net income both were up

results.
over

in

the similar period of 1955

This was true at the

it is not true today. For anyone

less-regulated railroad industry would'

place

in

•

these

rail service has
again dem¬

outlook

six

abandonment

of

■

revenue

first

modes of transport are

amounted to $113,41% increase over the same

more

which they
road

Net income made an

significant

$1.47

per

rise

share—

an

increased

in

nearly

all

product lines of the various divisions

rely on public

activity continued at a record
pace to produce a healthy order situ¬

the national

Sales

continued

to be

our

divisions.
of

This statement incites in

to

the

is

months,

an

come

from

optimistic

strengthened

company,

remained at

a

O.

Boshell

rail¬

high level.- Our Air Brake divi¬

sion enjoyed an increase
ments and noted

this railroad officer a warn¬

Commission: It is to be presumed, in their
conscientious deliberations of the common carrier posiE.

equipment

In their interest and for

ing to the

petroleum, mining and other in¬
dustries for equipment of a number
Sales

transportation.

security it must be kept sound."

strong

in

roads, long a major market for the
must

submissions of the Commission is this

"If, in fact, the 'hard core of

and subsidiaries. Construction indus¬

ation.

rail¬

state¬
transportation' in this
country is common carriage, then all reasonable and
practicable efforts should be directed toward its preser¬
vation. The overwhelming majority of people still must

ment:

months' results re¬

sales

would be used tomorrow, regardless of

strength.

Among the

78
increase

from

88%.■/V:'>
These first six

flect

that One

those competing
used today—the same reasons for

completely overlooks the reasons why

try

almost empty.

can

the

to destroy competition means

and activity was strong

the year

164,008, a

of

for

Sales

markets.

all

half of

of

in

low and

reduce

will

on
our

the automobile.

areas are

that, in certain

here

\

.

lightly traveled branch

■

have,

part

the public required the.serv¬

lines.
course,

program

and

ago

year

the New York Central is in

perCents are

even

losing proposition

of the trains running along

public

repair

months

months of 1955.

important

become outmoded, and I know that
onstrate

on

cents to

An

lightly populated

We acknowledge

we

our cause.

service is

know

As

ment

the pur¬

recently pending,

was

due to the number of

have.

scale

broad

many

the

large new car acquisition program,

very

of which have

commuters the fairness of the rise

Of course, passenger

*

position

through dealings with its public.

public sentiment joined

every

to

Due

for

than

r

as *

.

fare

commuter

demonstrated to
and

Central freight traffic volume

greater

-

will

activities have contributed to a steady

E. O, BOSHELL

May I repeat, the New Haven management feels it has
most

Baylis

started

house

already been delivered

been

E.

slightly

trains in September.

Diesel locomotives, 68

new

a regu¬

begin experimental

to increase and strengthen

passenger

140

pur¬

hope, will

we

eventually make the Boston-New York journey
lar three hour

A.

be

*

com¬

strangling of the ability of the com¬
mon carrier railroad to maintain the

economic

order

-

it, is to increase our pas¬

as we see

as

'

*,

the New Haven seeks to

chased

For the full year 1956, both total
activity and New York

,

safer

further

even

is / anticipated.

strength

present philosophy of administering <•
its mandate from Congress.
These ,

slightly, in excess -of 1955 corperiods,

railroad

long as the Interstate*
Commerce Commission maintains its /

ahead of earlier months

■I responding

trains.

our

on

5%

-.,3%, to

.

George Alpert

Because of the very poor July,
second half figures will prob-

:
ably be below those of the first half
|' although beginning in late August or
September a monthly level of from

ip the eyes of our public; our aommuter

quarter because

second

anticipated traffic for
the account of the automobile indus¬

;

Speaking for the Monon,
that since the last freight

carrier

continue

Of lower than

try;

say

itable traffic to the loosely-regulated

.

„

a net profit of $747,618.
objectives of this Admin- •
have
been, accomplished.'
to have regained stature in

it is reason¬

»

increase, we have experienced
accelerated diversion of our prof¬

mon

,

showing

;

rate

BAYLIS

the

honest

whole will not approximate their

a

can

tracking industry.
■- +
This unabated destruction of

of

an

1955 results.
I

We

The first

difficult to prepare

present and future of the railroad

ably obvious that Class I railroads

of economic

most

about the

net showing for the previous year, and

Our

good

recently legislated.

managed to curtail these losses, but
for the month of June, we succeeded

BROWN

industry without being critical and pessimistic.
It is doubtful that Monon Railroad will equal in 1956

anticipate.some improvement in the over-all- rate
activity in; the last five months of 1956 as
compared with the first seven months of the year. Our
tonnage was seriously affected during the month of
July by the steel. strike and was
similarly adversely affected during
,

fairly high level for the balance of the year,

It continues to appear

Vice-President, Freight Sale's and" Service,
New York Central System

Railroad, during the first half of 1956,

a

statement

Works, Kensington Steel ,
and Canton Forge and
Axle Woi-ks Division should be materially benefited from tne highway!

President, New Haven Railroad
The New Haven

the railroad

President, Monon Railroad

GEORGE ALPERT

•

the activity taking place in

of

WARREN W.

Company.

A. E.

view

In

gineering

gram as

passenger

and construction industries, business is expected to re¬

Pioneer En¬

business, and especially

continued

The

ment.

rently satisfactory.
units are enjoying

traffic control

centralized

introduction of light-weight,
trains should also result in in¬
creased orders for brake equipment, compressors; auto- ?
matic couplers and electronic wheel slip detection equip-.

in the near future.
supply over-all is cur-

our

More and more railroads are employ¬

equipment.

to increase the use of
existing tracks and, in some cases, to eliminate excess

serious problem
steel

classification yards by installing modern elec¬

in

tronic

point to continued good business,
with, of course, some exceptions.
Generally it is recognized that the
matter of excess inventories is fairly
well in hand and should not be a

All of

great interest by

a

time

high-speed

the steel strike

the aspects attached to
created pressures that
lean towards enhanced inflation, the
indications are that our outstanding
economic growth and the soundness
of
most
Governmental
activities
Although

remain strong as there is
the railroads in reducing handling

railroad industry are due to

situation have

Our

meet

to

trackage.

Company

Poor &

markets.

units serving the construction industry stand ready
the expected increased demand.
Sales to the

our

ing

EUGENE C. BAUER

of the year is encouraging
The Highway* Bill has become law and

The outlook for the balance
in all

of the country.

Chairman,

train serv¬

investigation of the deficit from passenger

an

Our piggyback

position.

our

in orders for air brake equip¬

greater interest in the Cobra (composi-

■.*

tion, that they will not overlook one
decline in the national business.

dustry has

the capacity and the regulatory

counteract any

>

factor involving any

Only the trucking in¬

freedom to

decline in tonnage. It now has the regu-

Continued

on page

20

Volume 184

Number 5560

.

.

The Commercial and Financial Chronicle

.

/

(683)
—not

Business Abroad
'

■

a

chosen

.«difference

m

few.

factory workers

'1

In

the

on

fact, the

between

income

one

our

other,
states

By IION. HERBERT HOOVER, JR.*

is

than

smaller
in

in

the

United

other

any

major

nation

in

the

world,

including the Soviet Union,
I should like to cite a few fig-

even

hand.

and management
personnel on the

And the National Interest

industrial

ures

which

anything

I

between

illustrate

the

know

as

the

American

well

system

today and the outmoded Marxist
image of capitalism as a ruthle-*
exploiter

as

difference

in

o?titeindividual

recent

American

years

Continued

of

the

average
in¬

family income has
on

page

Under Secretary of State

Impact of Soviet economic policy and outlook for American
business opportunities and responsibilities are reviewed
by
Under Secretary of State
Hoover, after first placing the
American economic system in its correct
perspective and
evaluating its, ability to cope with changed Soviet tactics.

1

$6,873,000
(Second and final Instalment of

an

issue

aggregating $14,433,000)

Points out:

(1) that foreign efforts to speed up industrial
development and raise living standards provide U. S. busi¬
excellent opportunities

nessmen

responsibility to

the

represent

and, at the
American

Pennsylvania Railroad

time, the

same

system;

(2)

how

American trade is supported and
encouraged, including capital

Equipment Trust, Series FF

outflow, without interfering in business activities; (3) Soviet

trade is unpredictable
direct its trade for

-

and that tfie United States does

§

not

political ends—of importance to under¬
developed countries; and (4) preponderant share of world
trade is between non-Communist countries.
One of the major factors affecting the future is the unpredictable
character of Soviet economic
pol-

t'

icy, controlling
-

proach
and

remained

new

!j

fo

r instance,
about the new

sive..

We

ful
"

Herbert

peace¬

Or

d

p r e a

domination

our

own

Hoover,

(Accrued interest

Apr.

to

3.40%

1957

3.50

Apr.

a

1957

Oct.

its objectives

are

1958

3.55

Apr. I960
Oct.

free world?
"

As

Is the American system capable

3.85

1958

3.60

Apr. 1961

1959

3.65

Oct.1 1961

1959

3.70

Apr. 1962

3.875

to 1971

V

;

3.90

that

own

V Issuance and sale of these
'm.

designs of world domination

matter

a

3.80

Oct.

Certificates are subject to authorization by the Interstate Commerce Commission.
V The Offering Circular may be obtained in any State in which this announcement is circulated
from only
such oj the undersigned and other dealers as
may lawfully offer these securities in such State.

HALSEY, STUART & CO. INC.

It is strange how unfamiliar
our
system is to many people abroad.

ib the

areas

*

3.75%

v

I960

Oct.

strategy.

political

communist

over new

£

be added)

Apr.

eco¬

than that of any other
country.
It is upon us,
therefore, that they
concentrate their efforts and their

jr.

economic

s

turn, for

us

American

the Soviets re¬
American system
of free competitive
enterprise as a
vastly greater impediment to their

....

expansion?
to

Let

the

to

know

gard

Is it a genu¬
ine movement

^.toward

MATURITIES AND YIELDS

on

system, and evaluate our
own
ability to cope with, this
change of tactics.

v i e t economic
offen-

it going?

have taken
'

we face today.

What is it,
.'and where is

^

ojprincipal and dividends by endorsement by

at to payment

Pennsylvania Railroad Company

nomic

v

;

unconditionally

the problems

aspects.

moment,

So

;

the same,

I have

past year,

$237,000 semi-annually April 1, 1957 to April 1, 1971, inclusive

The

outlined here, in only the
brbadest terms,, the problems that

fa great deal in

*

To be guaranteed

competitive

for the free world

;people.- We
have heard

_

Peace

objectives

hundreds of
•millions
of

;

"

adopted.

mature

co-existence bethe order of the day. While
the ultimate communist

of

:.the

be

Equipment Trust Certificates
(Philadelphia Plan)

To

came

it does the lives

as

could

33A%

of

fact,

one

of

i v

R. W. PRESSPRICH & CO.

|

the

BAXTER, WILLIAMS & CO.

'

major

of coping with this development?
What are the opportunities and
ness

as

look

we

ahead

into

the

*

These and many other questions
arise as we watch the pattern unfold

in

the

far

of

corners

the

>

I would like to explore with you
the answers to some of these ques-

seen

tions

'

.

.

because

.

conclu-;

our

sions may have much to do

*

shaping of

and

commercial policies for many

years to

As
.

SHEARSON, HAMMILL &. CO.
August 16, 1956.

find

ago.

governmental

our

back

look

prior to

years

were

This

death

in

culminated
number

a

in

capitalism a century
Not only does the American

classical

Marxist

of

representative

warfare

open

instances.

concept

-j,:tk '

Stalin's

repeatedly

regime

it
that

announced

mate

objective

domination

was

the

the

world.

Khrushchev has subsequently

•;

iterated this aim

.

sions.
The
*

v

the ulti-

was

of

on

several

V'S'r* ■! V:
effect

on

the

re-

occa¬
v

free

world

to draw together many nations for purposes of self-defense.
As a reaction to this military ag¬

gression and threats to the peace
il of the world, 45 countries joined
together in the Rio Pact, NATO,
ANZUS, SEATO, the Balkan Al¬
liance and the Baghdad Pact. The
result was that the free world be¬

stronger and

than

ever

to

more

resist

for

some

had

were

was

not

no

been

obvious

that the old polilonger succeeding, it

until after

new

tactics

Stalin's death

and

new

a

new

""""•An"address

ap-

by Mr. Horver a, .h. 2Sth
National Business Conference of the Harvard Business School Assn.,
Boston, Mass.




of

and

this

-?•

vT,'.JvV

to

can

First

assumed

found

••

:

•**;'t"

:

"•'

•'

t

:j

*„•*.

.■

\ l'.

Company

Mortgage Bonds, 4% Series due 1986

Dated August 1, 1956

,Due

August 1,1986

Price 101% and accrued interest

v

dimensions,
be

V

Consumers Power

govern¬

in the world.

offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.

$40,000,000

country in-

has

significant

many of which
few other places

in:

\vi

One such attribute is what hasaptly been called "the freedom
v

of

opportunity"—the opnortunity
one's job or profession
and
the
opportunity to rise to
choose

one's fullest capabilities.

The
>

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

Further-

more, there is no other"" country
in the world where educational

opportunities

they

are

in

where there
ties

are

the
are

available

as

accessible

United

States,

as

HALSEY, STUART &, CO. INC.

or

eayal opportuni¬

for'economic

LADENBURG.THALMANN ACO.
'

BLAIR & CO.

A. G. BECKER &. CO.
INCORPORATED

**.

Faster Rising
In

It is

no

U.

Lower Incomes
S.

SALOMON BROS. & HUTZLER

WERTHEIM &. CO.

suc¬

cess." *

communist

years

cies

that

it

freedom

resolved

threats of violence and subversion.

Although

But in

to
•'.

was

came

form

dividual

-

communist

•

heritage.

countless occasions.

During

:

I

not an

of

ment, the right to vote, the secret
ballot—these are all part of our

Our

persistent attempts to arrive at
peaceful solutions were rebuffed
on

is

The

in
1953, through
military power and ag-- tionally regarded as capitalistic.
When we talk about individual
gression, aided by subversion from
within, the communists expanded liberty in the United States, we
their domination over many parts have in mind something which
goes
beyond
the
of the world. Repeated threats to
freedom
ex¬
the independence of many coun- pressed in political institutions. A

tries

announcement

totally unfore¬

capitalism, it also differs significantly from the systems which
Preval1 ln other countries conven-

in history we

that in the 25

which

^stei7 bear lifUe resemblance

the

come.

we

Stalin's

;

-

when Marx and
Engels were

outright

~

-

-

belaboring

with

the

-

McMASTER HUTCHINSON & CO. C

over

tions

-

&.fcOMPANV

FREEMAN

The American system has
evolved
the past 50 years in direc¬

world.

"

communists

Erroneous Marxist Concept of
American Capitalism

'

*

the

exploitation.

-future?
-

of

is to spread an image of the Amer¬
ican
system as
one
which
em¬
bodies the most extreme form of

responsibilities of American busi¬

-

efforts

ican system, with its.freedom and
incentive for the individual and
with its stress on individual
worth,
has attained the highest standard

HALLGARTEN &, CO.

INCORPORATED

L. F. ROTHSCHILD

& CO.

A.

accident that the Amer¬

DICK & MERLE-SMITH

BAXTER, WILLIAMS & CO.

SCHOELLKOPF, HUTTON &. POMEROY, INC.
STROUD & COMPANY

BACHE&CO.

HIRSCH&CO.

INCORPORATED

GREGORY

& SONS

J. C. BRADFORD

WM. E. POLLOCK

& CO.

IRA

& CO., INC.

HAUPT & CO.

BALL, BURGE & KRAUS
H. HENTZ

&

CO.

of

living for its people. Moral and
spiritual values have provided the

?OTC,® f°r tWs achievement.

And it is all OUr people who
the beneficiaries Of this

are

progress

KEAN, TAYLOR &. CO.
August 15, 1956.

STERN BROTHERS &, CO.

7

VAN ALSTYNE, NOEL &. CO.

18

Commercial and Financial

The
8

Chronicle

Thursday, August 16, 1956

...

(684)
Dravo

Corporation

Dealer-Broker; Investment
Recommendations & Literature
It is

Analysis — Coburn & Middlebrook,
at Pearl, Hartford, Conn.

funds, possibly a Canadian fund or
two, a fund designed for income,
and captal gains, a balanced fund
and an
income fund.
Try and

Inc.,

Manufacturing Company—Analysis—H. Hentz & Co.,
Street, New York 4, N. Y. Also available is a
of Cooper Bessemer Corp., Westinghouse Air Brake

Fanner
60

—

Trumbull Street

100

Beaver

Ferro

Ferro

understood that the firms mentioned will he pleased
send interested parties the following literature:

5, N. Y.

live
in

>

.

Also in the same
Corporation.

5, N. Y.

formation on Chicago

Fund,

S. Borax &
Chemical
120 Broadway, New

Boron—Analysis with particular reference to U.
Chemical Corporation, and American Potash

Bissell

Company—Laird,
N. Y;

York 5,

Broad Street,

Burnham and Company, 15

—

5, N. Y.

New York

,

Shares—Survey—E. F. Hutton
York 6, N. Y.
Japanese Stocks — Current information — Yamaichi Securities
Co., Ltd., Ill Broadway, New York 7, N. Y. *
New York City Bank Stocks—Comparison and analysis for sec¬
ond quarter—Laird, Bissell & Meeds, 120 Broadway, New
Inflation and Natural Resources
& Company.

York 5, N.

61 Broadway, New

"

parison between the listed industrial stocks used^in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

Richter
Texas

National

Second Avenue

Bank

Seattle-First
Columbia Street, Seattle

Annual review

—

&

—

Union

4. Wash.

York

New

Stock

N.

6,

Market in

Philip J. Fitzgerald—Dean Witter
Street,. San Francisco 6, Calif. Also

ARTICLE VIII
—What

Mutual

Potash

&

Chemical

Corporation—Analysis—Glore,

Inc.—-Statistical review
—Sanders & Company, Republic National Bank Building,
Dallas 1, Texas.
*
-/
•
St. Paul & Pacific Railroad—Report—
& Co., Board of Trade Building, Chicago 4, 111.

Chicago, Milwaukee,
Kneeland

Dealers

We suggest that you and your

...

can

still

clients

profit in:

machines" figure to take

"one-shot"

their

business

and

give

many

men

are

so

sold on their prod¬
about
Funds is to Visit them—the

that they are

The best way to learn

uct.

the

next« best way

$7.50 per copy —
Houston, Texas.

is to compare their

not only
five,

record

of performance,

for the

past 10 years but for

three, and two—also in periods of
market declines as
well as ad¬
vances.

brilliant research

— see it
in
will have a dif¬

all the time

proving
action

and

appreciation of what

you

can

And Study—
be the step¬

business. Prop¬

offering to your clients

have ever before

Salesmanship

Other Good

m

successful career

P.S.

ment

By far and the most complete
compilation of data available on
the subject of the Mutual Funds is
the "Investment

"What

known.

Every

Salesman

About Invest¬
issued by Na¬

Know

Should

Material

Source

—

Funds,"

tional Securities and
,

Companies" Man¬
_

published by Arthur Wiesenberger & Co., 61 Broadway, New
York 6, N. Y.
A past record of
the different types of Funds is
readily available there*
ual

you

than

Research

120 Broadway, New
York 5, N. Y„ (revised ed.)
has
been
designed to help
salesmen understand and sell
all Mutual Funds. It is a com¬
Corp.,

prehensive source and text on

laws, regulations and tax
status of the
Funds, also a
Voorhis (25 Broad
course
in the sale and mer¬
Street, New York 4, N. Y.) deal¬
chandising of Mutual Funds.
ize in the "Funds" and become so
er's service — "MSS" t— also has
It is a primer and a compila¬
expert in their presentation that
some exceptional source material
tion of proven sales ideas by
they devote their time exclusively
available from time to time, espe¬
to selling such shares. The Funds
qualified experts.
cially on using the Tax Laws to
make their investment decisions
sell Mutual Funds. This service is
and they confine their analytical
With Eastman, Dillon
valuable both from an educational
efforts to the selection of the typa
(Special to Tis Financial Chronicle)
of
Fund they believe
suits the standpoint regarding the uses of
the Funds to solve tax problems,
LOS ANGELES, Calif. —Theo¬
client's needs.
and also for its sales suggestions dore G. Loomis has been added
The security salesman and ana¬
and
the advertising
material it to the staff of Eastman, Dillon &
lyst however (who desires to be¬
Co., 3115 Wilshire Boulevard.
come an investor
advisor to his presents.
Many of the Mutual Funds have
clients and an all encompassing
material available that will assist
thoroughly grounded investment
Joins Gross Rogers
the
salesman to obtain a better
man) will use the Funds where
(Special to The Financial Chronicle)
idea of the inheritance laws, estate
indicated in
his best judgment.
LOS ANGELES, Calif. — Sanand gift taxes. It is yours for the
Therefore, he should have broad
asking.
ford L. Goldshine has been actded
knowledge of the records of the

clients because they

offer "pack¬

aged professional investment
counsel." Some salesmen special¬
:

are

The

the

Kalb,

.

Automation Stocks
Where "thinking

Investing Corp.,

DUTTON

erly used they provide an invest¬
ment that the beginner salesman
can
sell with confidence to his

Campbell Taggart Associated Bakeries,

of

Read

in the investment
*

Forgan '& Co., 40 Wall Street, New York 5, N; Y. Also avail¬
able is a circular on the Baltimore & Ohio Railroad Company.

out

To

Funds

ping stone to a

return.

American

some

you

By JOHN

Fundamentals of Security

m

reason

ferent

& Co., 45 Montgomery
Available is a bulletin on

Yields—Bulletin—Francis I. du Pont & Co.,
1 Wall Street, New York 5, N. Y. Also available in the cur¬
rent issue of "Market Pointers" is a discussion of inflation
and stocks, an analysis of the air conditioning industry, the
shoe industry and suggested stocks with better than average
•

The

capable and sell such a large vol¬
ume of Mutual
Funds shares is

Salesman's Corner

Securities

Bond

vs.

yourself what makes the wheels
go round!
Meet the men who
obtain the facts, evaluate them
and make the decisions.
Estab¬
lish a key contact in each fund
with whom you can work. You will
obtain information and assistance
that will be helpful to you and
your knowledge of your product
will increase immeasurably.

personnel in the Mutual
Fund industry today and it is im¬

Transamerica Corporation.

Stocks

management and see for

time with

Corp.—Bulletin—DeWitt Conklin
New York 5, N. Y.

Chemical & Materials

Spend 'some

interested.

are

you

There is some

speech by

Election Year—Reprints of a

Visit the Funds

it possible, pay ia visit to the
home office of the funds in which

and able

Y.

an

know you! !

Organization, 100 Broadway,

Investor—Pamphlet containing lists
of
selected
securities for income, growth
and trading—
Harris, Upham & Co., 14 Wall Street, New York 5,-N. Y.'
Railroads—Bulletin—J. R. Williston & Co., 115 Broadway,
for Today's

Pocket Guide

they will

Transmission Corporation—Bulletin — Scherck,
Company, 320 North Fourth Street, St. Louis 2, Mo.

Louisiana Gulf Coast Lease Map —Drafting Company. 6132 Almeda,

By your deeds

the field.

New York 4, N.

Macha

scatter your busi¬

to

ness over

&

Racing Corp.—Report—General
New York 5, N. Y.

than

funds

will

It is better to place
business with a few

you.

substantial

Texas Eastern

4, N. Y.

Pacific Northwest Industries

assist

80 Wall Street,

performance over a 13-year period —
Quotation Bureau, Inc.', 46 Front Street, New

National
York

Place, New

Southland

market

and

yield

trying to accomplish and they

Seaboard Drug Co.,

showing an up-to-date com¬

funds

understand what you are

who will

Y.
Inc.—Data—Foster Mann, Inc., 40 Exchange
York 5, N. Y.

William Street,

Y.

Over-the-Counter Index—Folder

E. Heller

when you need it. Be¬

nected with these particular

Company—Brochure—Weinress & Com¬
pany, 231 South La Saile Street, Chicago 4. 111.
McGregor-Doniger, Inc.—Analysis—Unlisted Trading Depart¬
ment, Ira Haupt & Co., Ill Broadway, New York 6, N. Y.
Port of Chicago Lake Caluirtet Harbor — Report — De Leuw,
Cather & Company, 150 North Wacker Drive, Chicago 6, 111.
Schield Bantam Company—Analysis—First Secuirties Corpo¬
ration, 111 Corcoran Street, Durham, N. C.
Scudder Fund of Canada Ltd.—Report—Lehman Brothers, 1
Walter

>

Letter

Foreign

Meeds,

&

&

write to

additional help and in¬

acquainted with people con¬

come

Street, New York 5,

Report of June 30, Atomic Food Irradiation, British Uraniumbuying in Canada, etc.—Atomic Development Mutual
Inc., Department C, 1033 Thirtieth Street, N W., Washington
M 7, D. C.

for

changes,

portfolio

them

formation

Fresnillo

Review—Bulletin discussing latest develop¬
ments in uranium industry — Harris Upham- & Co., 120
:
Broadway; New York 5, N. Y. Also available is a bulletin
of suggested stocks for appreciation with good yield, and
reports or. VV. R. Grace & Co. and Continental Can.
Atomic Letter (No. 20)—Comments on Atomic Funds Annual
Energy

Atomic

good performance. Keep in
with
these
funds—study

their

bulletin is in¬

Company—Analysis—Stanley Heller & Co., 30 Pine
N. Y.
Game well
Company—Analysis—Peter P. McDermott & Co.,
44 Wall Street, New York 5, N. Y.
General Minerals Corp. — Memorandum — Rauscher, Pierce &
Co., Mercantile IjJank Building, Dallas 1, Texas.
Govt, of India Securities—Bulletin—Harkisondass Lukhmidass,
5, Hamam Street, Bombay, India. Also in the same bulletin
is a discussion of the Indian automobile industry.
W. R. Grace & Co.—Memorandum—Moore, Leonard & Lynch,
Union Trust Building, Pittsburgh 19, Pa.
Gulf Sulphur Company — Analysis— Garrett and Company,
Fidelity Union Life -Building, Dallas 1, Texas.

V

a

touch

& Co., 52 Wall

Corporation—Data—Bruns, Nordeman

Street, New York

to

ment

& Co., 36 Wall Street,

Corporation—Bulletin—Bache

New York

you

Worthington Corporation.

Company and

out the one in each group
believe has the top manage¬
record and which you bewill
continue
to
turn

pick

review

tool makers

them variety and

stability..

,

Mutual

Funds

the

Spokesmen estimate there's enough tool replacement business
to keep the whole industry operating at capacity
for at least
seven
years —
and "that competition being what it is, no
company hereafter can afford to be caught with its automation

various

down."

the records of the prospectuses

•

The Cross Company
•

Foote-Burt
•

.

'

He gains this knowledge
through a very simple process—
all he need do is read the facts in

years.

the various Funds.

We Trade and Position:

over

of

•

Specialize
There

are

sible
field.

keep

to

Select

Mechanical
•

HAnover 2-2400




staff

559

of

South

Gross, Rogers

Figueroa Street,
Angeles Stock

members of the Los

Exchange.

He was formerly

Daniel D. Weston

& Co.

York Security

Banks, Brokers,

Dealers only

>i:,

Eastern

Handling Systems

Warner &

•

growth type

For

■

Shopping Centers, Inc.
(

<

-

Common Stock

Swasey Co.

...

Cr Rights

Stryker & Brown

Dealers Association

50

74 Trinity Place

the

We have orders in

Troster, Singer & Co.
Members New

impos¬

v^ith the whole

few

DEPENDABLE MARKETS

Snyder Tool & Eng.
•

up
a

to

Mutual Co.,

?

Company

Kearney & Trecker Corp.
•

Few Funds
many

so

Funds that it is well nigh

Giddings & Lewis Mach.
•

a

on

„

BROAD

ST., NEW YORK

New York 6, N. Y.
Teletypes NY 1-376-377-378

DEMPSEY-TEGELER & CO.

Tel.

HAnover

2-3970

4, N. Y.

Teletype NY 1-1582

with
•-

Volume 184

Number 5560

..

The Commercial and Financial
Chronicle

.

1

By ROGER W. BABSON

"keep

not

does counsel

up

against additional

cautions merchants "to
put more

emphasis

indebtedness

on

study

in the

of

relationship of future
purchasing to the books

consumer

which

vicious
I

phonograph
records
now

be g o

may

i

u s

DENVER, Colo.—Audra

to

tance

been

new

-

ness

changes.
Recently he
ing to

building,

may be wise

avoid

further

f; MINNEAPOLIS,

merchants

to
put
transac¬
;■/"v "V-

cash

on

G. Kinnard and

tne

the

Minn.

—

John

In

should

all

r
_

E.

Heath

Iowa

me

It

of

sales

Des

Moines

Two With

manager.

with, many

of

years

mer¬

Mr.

PENSACOLA, Fla.—Gordon R.
and Hugh S. Sease have

Heath,

investment

Nolting, Nichol

(Special to The Financial Chronicle)

the

as

Barnett
■

joined the staff of Nolting, Nichol
& Company, West Garden
Bldg.

from

largest retailers of
Mutual Funds in the upper mid¬

suddenly

get

discouraged

nor

west.

F. Beskow has been added to

the

staff of Lon

L.

Grier

^

New Issue

's'i ' "•

••'

*

solicitation of

nor a

<

an

offer to

buy these'securities.

The offer is made only by the Prospectus.

•

•>

„.,v

offer to sell

1

/

V

;

(

i'r-

w v.

-v';ty-,

/

„

•'

hY*'?

/

")

* 1

.

1

*

' ''

'*

-

v,")i

debt.

'v"'* V

$36,454,000

was

nine

he

he

worked

could

never

;

The

for

Metropolitan Toronto

to St. Peter to give him more
time
before "calling me home."

(Province of Ontario, Canada)

My

grandson feels
that
one
reason
this record has had such a
big sale
is that it represents the

-:T

Debentures

feelings

of millions of consumers who

heavily in debt
Of

course,

to

Dated August 15, 1956

are

to

Due

store.

some

have

consumers

television sets.

why

There is

working

a

no

as

shown below

$33,591,bOO Sinking Fund Debentures

enjoy automobiles, re¬
radios, and probably

frigerators,
reason

August 15,

a

perfect moral right to borrow in
order

Municipality of

get out of

Having been taught that all
should be paid, he
prayed

debts

Public

Principal

should
credit—as

man

Interest

Amount

moral

Maturity

Rate

Appro*.

Offering

Date

Price*

100.22%

$

Yield

to

Maturity

510,000

4%

1961

even

937,000

4

1966

98.38 ;

custom which did

638,000

4

1971

96.71

not prevail 50 years
ago.
Prob¬
ably modern advertising has been

4.30 V

27,868,000

1976

96.37

4.40

1986

95.44

4.40

be

well

entitled
his

as

force

change;
banks,

to

use

employer

though this is

a

to

now

which

bring

about

scorned

borrowing
soliciting it.

—

3,638,000

this

such

con¬

few years ago,

a

$2,863,000 Instalment Debentures

Most Merchants Must Give Credit
The

"Five

and

on

an

Public

Ten-Cent"

riety stores have built
business

41/g

all

up

cash,

a

va¬

Principal
Amount

huge
de¬

no

Maturity

Interest
Rate

Approx

Offering

Date

;

Price*

Yield

Public

to

Principal

Maturity

$205,000

1957

4%

100.38%

There

213,000

4

100.56

3.70

such

220,000

1959

4

100.55

3.80

228,000

1960

4

100.37

234,000

1961

4

100.22

236,000

1962

4'

now

will always be a field for
stores, but to operate sue-,
cessfully, they must get the ben¬
efit of huge buying power
through
large chains. A great many con¬
sumers,

delivery,

however, demand credit,
and

personal

in

tends

business.

Also

I

to

Consumers

Make

Maturity

Amount

Date

253,000

1964

4

262,000

1965

3.90

256,000

1966

3.95

/ 91,000

1967

;

94,000

1968

?

1969

4.00

99.70% 4.05%

$101,000

^

Interest

Offering

Rate

Price*

,

1970

4%

97.38%

Appro*.
Yield

99.32

4.10

61,000

1971

4

96.71

4.30

4.15

16,000

1972

4

96.56

4.30

98.38

4

4.20

98.25

-4,. -:/■

4.20

17,000

1973

4

96.41

4.30

17,000

1974

4

96.27

4.30

18,000

:

1975

4

96.13

4.30

"

4

4

97.67

4.25

97.52

'

as

4.25

obtainable from only such of the undersigned and such other
lawfully offer these securities in the respective States.

are

may

Harriman Ripley & Co.

Business

The Dominion Securities

Incorporated

Business conditions

are not de¬
termined by bankers or politicians

Smith, Barney & Co.

by the leaders in your
community. Now, my grandson's
important question today is

Corporation

The First Boston

Corporation

even

whether

consumers

are

A. E. Ames & Co.
Incorporated

getting

tired and want to rest, or whether
they are still determined to "keep
up with the Joneses."
Probably

//

Bell, Gouinlock & Company

almost every reader of this
paper
is anxious to do both, and for a
time this will continue to

sible,

with

retail

sales.

further

a

Burns Bros. & Denton, Inc.
W. C. Pitfield & Co., Inc.

If, however, the tire

the retailer will buy less from the

the

manufacturer




McLeod, Young, Weir, Incorporated

Lehman Brothers

Salomon Bros. & Hutzler

Mills, Spence & Co. Inc.
Greenshields & Co (N. Y.) Inc

August 15, 1956.
-

l

Dawson, Hannaford Inc.

White, Weld & Co.

Nesbitt, Thomson and Company, Inc.

in

changes and retail sales fall off,
manufacturer,

:

Incorporated

be pos¬

increase

Wood, Gundy & Co., Inc.

|

Blyth & Co., Inc.

~

4.25%

98.88
.

to

Maturity

thus

Conditions

or

100.00

dealers

selling on instalment
bring the customer back

store
every month,
stimulating further sales.

Principal

Maturity

4%

Copies of the Prospectus

under¬

that

the

Yield to

£*!s

Price*

(*Plus accrued interest from August 15, 1956)

for
the
local merchant doesn't grant them
it is very difficult for him to con¬

stand

Offering

Rate

1963

pay

more

tention.

to

$244,000

at¬

Naturally, they must
these privileges,
and if

#

Public

Interest

97,000

self-service basis.

Appro*.

Maturity
'

Amount

3.60%

1958

livery, and

3.95%
4.20

(♦Plus accrued interest from August 15, 1956)

conservative

even

sumer

tinue

-

song of a man work¬

Although

years,

are

Co.,

-

an

day and who bought
supplies at the company

his

the

&

735 North Water Street.

every

store.

not

King

the

This announcement, is neither

"Sixteen

ing in the mines, whose job
to dig 16 tons of
"number
coal"

have

of

at¬

my

The "Sixteen Ton" Story
a

Green

staff

Street.
■

an¬

nounced the appointment of Robt.

prosperity if 50% of the families

rTons."

This is

A.

the

(Special to The Financial
Chronicle)

associatiohseouldprevent experience, is

situation

•

worse.

industry.

-

*•

to

/
SAN FRANCISCO, Calif.—John
J. Runger has
joined the staff of
Archie H. Chevrier, 519 California

Company of Min-

neapolis, Minnesota have just

often

however,; that

chants'

new

and the automobile

tention that a
best
selling

-record has been the
song

Harry

Joins Archie Chevrier

Kinnard Appoints
Iowa Sales Mgr.

business.

has been call¬

Roger W. Babson

and

added

Merritt & Co., Inc.

..

*

B. Cus-

.

of

future b

started

.,

d

o

merchants

.

these

barometers

and

King Merritt

(Special to The Financial
Chronicle)

now specializipi in
becoming Mutual Funds and has representa¬
15. partly
meantime, I throw tives
in .the/.principal
Lou Grier Adds
cities
to insure "continued
prosperity, in Out' the "question of whatk would throughout
Iowa.. John G; Kin¬ if-'*; .; (8peclal to The Financial Chronicle) 11* -;
casethere should be a severe
happen to retail trade, general nard and
Company are One of the / MILWAUKEE, Wis.—Mrs. Elea¬
slackening in installment sales, employment, and our
present oldest and

tremendous

road-building campaign

tend. He feels

that

Two With

automobiles, refrigera¬
tors, television sets, and other
things?
'
'
;

advertis¬

of

sales, but they tell
practically impossible.

is

seems,

it% Probably

friend, and stop

advertis¬

stallment

the ^ proposed

at¬

now

ton"

repossess

suggested to mer¬
chants that they have a
price dif¬
ferential between cash and in¬
this

fact, if it should come
Congress would take immed¬

iate steps'to' check

banks

or

as

y;/.-'v. V.;-''''

<

I have

at the pres¬

to

for

emphasis

ent time. In

movies

they

and

tions.'

//y ■/

■

sigriof this

for

hand, it

consumers

more

power

"16

our

buying on installments altogether.
Or, what would happen if the

Certaiuiy

now,

they

buy, and

the

circle. 1

see no

like

merchants

appropriations

debt

em¬

the country will decline.
This
could develop into a
very serious

people

whether

On the other

cash transactions."

of

read, the

now

—

ing should continue,
ing is the life blood

and

ployees, and the purchasing

and

Do

the

our

grandson, Roger Babson. will reduce the number of his

Webber, is much interested

All

poor

for

My

r

We

avoid getting
pessimistic mood of the
fellow digging the "16 tons
number nine coal.",

into

let-down,,

consumer

consumer

Shall

consumers—should

with the Joneses," Mr.

of any signs of

aware

all

we

Referring to the popular, jazz phonograph record "Sixteen
Tons" to determine whether this indicates
consumers are tired
of consuming or still want to
Babson, while

What

,We should not suddenly, aban¬
don
installment purchases.
But

Equisec Canada Inc.

Harris & Partners Limited, Inc.
Midland Securities Corporation

,

,

;

'

Chronicle

The Commercial and Financial
10

power

Menace

Their Growing

^

RICHBERG*
Richbergr, Tydings & Landa
' Washington, D. C. ■ ;; VllW,/

By DONALD R.
Davies,
'■*,
r

Sup^m6 Court described as
"startling" let us consider just

large role in labor growth; (3)

it still leaves
mnnnnnlktic

African

violence in reserve.
of

nowers

for

economic power centage of
in .labor, unions to unprecedented |n order to
"and intolerable heights. Statistic?! Their witnesses testified before breatn. denounce business monoindications Mve been given of the Congress they had ample bargain- .polies. In the same A. F. of L.
present size of labor unions con- jng power with a law that gave brief from which I have quoted
trolling our most vital industries, the majority representative the the argument was made in one
But, to show how recently and privilege of binding all minorities paragraph that "workers cannot

of key industries; (2) govern¬
compulsory
unionism permits discipline oyer members comparable to gov¬
ernmental police power; and (4) changing nature of strike
from physical violence to quiet test of financial strength though
Th*

compulsory of the present day still regard
themselves as devoted to a democratic form of government supported by and supporting a cornpetitive system oi free enterprise,
They will in one breath denounce
all competition between workers,
non-umon employees proclaiming and exercising " mohave union security, nopoly powers, and in the next

demand

This

rise of centralized

is based on unionization

aid played a

governments. It is most surprising, however, that the socialistic,
totalitarian minded labor leaders

.

the same laws enforced against
business monopolies and allow the application of existing laws
to criminal lawlessness of strikes.
Points out: (1) monopoly
subject union monopoly to

power

growth r. of monopolistic powers
which are not oniy tolerated but
actually fostered b.y our political

unionism, which is now prevalent
monopoly throughout organized labor, is the
power has developed. Thereby we strongest evidence of the monopomay see more clearly the
weak jistic purposes of the unions. The
spots in the law and in public railway unions for example did
opinion that have supper tea uie n0[ need to conscript a small per-

of

growth

this

how

responsible, democratic unionism with existing state of union¬
ism which is described as a growing monopolistic destructive
menace to a free economy.
Mr. Richberg suggests Congress

ment

the proper and ideal they persuaded Congress to amend
the Railway Labor Act to permit
them ,to :use "employer coercion
through union shop agreements to
compel all railway workers to
join a union or lose their jobs.

was

Objective of all labor organizations
although obviously a sinful objective for any business organization,
Before
discussing further the
fallacy of this idea, which even
the

his concept of strong,

Well known labor observer contrasts

4'::

'

,

.

.

I:

~

Thursday, August 16, 1956

*

prevalent that the AFL and CIO in 1935 to over 1,700,090 in less state, within and dominating a poeven had the audacity to argue in
than 20 years. Yet in 1951, greedy- litical state,* is one which has
the Supreme Court that monopoly for
more ' power and revenues, grown and blossomed with the

Monopolies anil

Labor

,

..

(686)

thrive but can only die under
competition between themselves,"
and they must have "the right to
eliminate wage competition,' but
competition,"

rapidly these union monopo- fcy a trade agreement.
have developed, one more.
,
astonishing statistic should be re.
More Disciplinary Power
v
corded. The total membership ofGeorge M. Harrison,' President
Harrison,

how

lies

•

unions according to De- of the Clerks and chief labor wit- business men must not have "the
partment of Labor estimates 1933 ness, testified that the on 99% of Tight to eliminate price compete
was over 4,400 contracts unions held tion.
million in
less than three million m 1933 over 4,400 contracts on 99% of turn."
■
. competition is to
•
and over 17 million 20 years later. the railway mileage. The main ..■< Just how price competit
conditions which would neVer be You will not be surprised to learn reason they gave for demanding-be maintained when labor monopagreed"tcT voiuntarihrT This is not most of this rise came from 3,700,- compulsory unionism was thai olies dictate to entire industries
the demonstration of a special 000 in 1935 to 14,800,000 in 1945, they wanted not only dues from labor costs, production standards
wickedness among-union officials. It is obvious that the enactment everyone, but also more power and every vital element that de¬
It is a natural ambition common of the Wagner Act and its favor- to discipline all members.
explained. But we might call at¬
to all human ^beings to relieve able administration for Id;; years " in. pressing
their compulsory tention to the coal
~"~1
J
industry where
themselves of the uncertainties was largely responsible tor
legiSlati0n in Congress and later
labor dictator, exercising com¬
and losses of fair competition, by extraordinary expansion ot mem- fcefore a Presidential Emergency plete monopoly power, established
thev

transform

may

collective all labor

bargaining into collective coercion
ve^fed by staUstics of total mem-.and compel the acceptance ,o( debership Otherwise it might be as- mands
for wages and working
persnip.
labor unions are not re-

vmerwiseii^^s

^

a«.

I7onooftft

could

ionists
not

nn-

monoDO-

li ze * employments
filled

by over 50,000,000 indusBut

a

ferent

picture

is presented
when

key in¬

dustries

are

UusUICS

viewed.

Over

1,400,000

auto¬

mobile
ers

can

j.

Lahor

*ads *° achieve one's selfish aims.
The only way a free economy
can

be

preserved

is

lnus

,

th

mat

,

,

-

o

aia

Perhaps
hm»
of how
have grown in one

clear

this

bupi-eiiie
toupx.eme

unions

r

the anti-trust laws The reason for

the' Emer-

to

as

•

"

£

j* •- '

.

..

i;

Economist's Congressional
Testimony

^

reliable conservat, e and mde-

An^ncan

an organization" of 300,000 persons;;i

build UP the power Of w mem except uie lour uanspinas
a
counter-force tation brotherhoods are really na-

effort to

complained

'

A distinguished political econ¬
omist, testifying before a Senate
committee investigating labor mo¬
nopolies (Dr. John V. Van Sickle,

members. T„ th* MmP vPin he
In the same vein h*

later

■

,

An

his p0wer of discipline over

Crease
^
old

■

the price of coal,

th^jr duesf

vital

most

garde*.
«Iy stop

11

_

told
told

...

,

,

_

Court in
Court in 1949. Harrison

congress
frankly that
Congress frankly that he
wan^e(j compulsory membership,
a most revealing story
oniy to bring in new members
mononnlv
control , has
and
monopoly control
but als0 t0 in.

.

anyone.
Contrary to
obligation upon our

by

powers

three-day work week by flat
and, with no appreciable opposi¬
tion, has fixed lor years all the
wages which absolutely determine
a

their arguments ' 111 the
Ulllvil VP
in vlly

corcj with

.... ^

goveinmenc

ernment to write and enforce laws eviuence tnai governmenc
aid
preventing arid prohibiting the ac- Pja^d a large part m Jfit growth
p£u„!? The
quisition and use of monopoly of tbe present labor monopolies.
r

to

assumed

a right to exercise
governmental powers over a
society of workers exactly in ac-

clearest

tne

nave

we

unions

themselves

Bv

Government

for the gov-

...

Aided

Growth

the

Board

-

scores
,

j

work-

bership.

noronlva maior government, labor unions
of our most vital
Itbeen granted snecial aids to be industries has been written by the
^ranted
of other indus- been
special aids to beThese are
come
monooolists and a soecial railway labor unions.

oaralvze
®

industry but

un¬

ionized

R. Richberg

Donald

a

acquiring a power to make others
dif- yield to force when persuasion

trial workers,

w

w

wuuivio.w

umiucue cui-

Jd exercise Now think of
powergiven bycom-

-t

?he

lecUyism m government.'; In other
teamstc against the inherently monopolis- tional AFofL unions. Such are, for peixing au workers to join a union words> ^e product of private moployers
dependent
on
haulins Over 1 250 000 steel work" tic Powers of big business. Against example, the electrical workers,
d p
tribute and submit to noP°1y 1S a demand for goverijelse lose their
W
monopoly, which is socialits
have proved their ability to monopolies there were 25-yeSrs of machinists, sheet metal workers,- ftf discipline
their

force

to

ueucnuem

uiuycis

labor

demands

unions

uu

„

„

ers

halt

all

production

of

products

intensive

,

public
education
by
political leaders from John Sher.

telegraphers,
unions were the

carmen, clerks and

livelihood!

essential

to

continued

eco¬

man

.11U.

L.WW11

..._

Inconsistent

to Woodrow Wilson. A deep-

Union Views

Competition
The

„v„„

L.,..

"But," Dr Van Sickle went

,

The railway
first to obtain the valuable aid
nomic health. Six hundred thou¬
seated antagonism to big business of a Federal ;law in the Railway
sand mine workers can, and have,
shut down the codl industry even monopolies was developed which Labor Act enacted in 1926. As a
most

police

»•

desire

arrogant

same

on

on

'.to point out, "it is equally true
that big labor collectivism also

for

A

Jove™"
„

has been kept vigorously alive pioneer document^ of which I was g0vernmentai oower was boldly
Indeed the Ibreat^om the
unions of longshoremen, building ever ^since by politicians ranging chief draftsman
let me call at-sexplained to r,v.0,,irtr,eixr
the Supreme Court ?£« /hat
iwi nf
all
the
way
from statesmen to tention to the all important prin- a few „„OY.c previously when +V10 than that of the side of business
0
years
the- i""!
" " "
•workers,
electrical, ' textile
and
demagogues.
•*.
"
ciple " of reciprocal rights and A. F. of L. brief opposing slate. V? J^ low?]
vfcHv
garment
workers,
printing and
;
"
; '
duties for employers and em- Heht—to-work laws made these
labor S power is vastly
telephone employees and others
in

a

time

of

war.

Even

smaller
j

,

,

Persistent Illusion of Labor

too

to

numerous

demonstrated

mention

have

Monopoly

capacity to exer¬
cise monopoly controls over local,

sectional

or

ployees written

provided,

-

a

as

a

into that law. It
result, an instru-

*

The worker

But, from the time of President ment of peace, not an encourageWilson, and the passing of the ment of strife. I may add here a

national industries.

ber

he

of

an

takes

becomes

a

mem-

economic society when
employment. .. The

greater than that of business. The
owners of vital private businesses
would never dare expose the pubjice t0 the

have

hardships to which they

been

repeatedly submitted
not

Collective

Coercion

ions

simple fact is that all
seek

monopoly

un¬

powers

that labor union

so

desirable

and

monopolies

not,

like

—

»luaiUu

nxc

The

were

San

Francisco, July 27, 1956.

mon°Polies' destructive of
economy.

4

a

free

This illusion has been

so

-

&

persistent opponent of that sort
class favoritism in legislation.
The Railway Labor Act did not

labor

Peck

the

So

relations.

that

in

the

government

of

American Stock Exchange

V

bargaining.

Bonds

even

the

Preferred

bade not

Members

Common

company

YEAR

York Stock

and

Exchange and other

commodity exchanges

v

*

60

BEAVER

STREET, New York 4, N. Y.

EOwling
T

781

9-8420

Green

FIFTH AVE., N.

Y, (Sherry-Netherland Hotel)
PLaza 1-2220

/
1430

BROADWAY, New York 18, N. Y.

a.Pennsylvania
CHICAGO

tracts.

New

leading stock

i

1934

unions but
also monopolistic union shop con¬
only

technology drasti-

H.HENTZ&CO.

of power and arbitrary strikes by
the unions. The law clearly for¬

RAILROAD SECURITIES
Leased Line

But

amendments preserved many pro¬
tections of employers from abuses

DEALERS IN

Guaranteed

conduct of collective

or

march of

the

lOOth

OUR

coercion in the selection of repre¬
sentatives

economic

an

1934

unions

sought and obtained
more
severely re¬
stricting employer interference or

Exchange

DETROIT

PITTSBURGH

G-5775

MIAMI BEACH

CORAL GABLES

HOLLYWOOD, FLA.

and
Union Shop Railroad Amendment

Under

Unlisted Investment Stocks

this

act,

New York

5, N. Y.

nothing
brief

Telephone REctor 24949
Teletype NY 1-724
Private voire




to

Philadelphia

amended

in

BEVERLY

'V;*' •_*

HILLS, CAL.
'

'

GENEVA, SWITZERLAND

AMSTERDAM, HOLLAND

BUENOS AIRES, ARGENTINA

1934, the railway unions grew and
prospered

120 Broadway

as

but

strikes

a

for 17 years with
few abortive and

to

mar

industrial

peace

parallel in

a

a

record

which

has

of

major American in¬

their

numbers

from

Underwriters and

Distributors

no

dustry. The unions meanwhile in¬
creased

but in

was at stake. Moreover
competition of susbtitutes and

This concept of labor unions as

amendments
Members Net* York Stock

,

times of war> when our national
sibilities of

provide an invitation to labor to
monopolize all the employments
in an industry. Indeed it appeared
to have left the door open to con¬
siderable
employer influence in

Adams

^

v

.

a sense the government."resPon" existence
P°wers and
a

to. continue to this day to be

of

T.

t

h*

to withdraw from its drafting

me

business
a

.he'A^^r„^a'nh MaubRitfb

-

a

total of less than 500,000 members

of

Corporate Securities

(687)
cally limit business' control
market.

Business
and

possess

the

and

uses."

statement

not for

But

minute think that

one

peaceful strikes would succeed if
there were not behind the union's

<

peaceful

plain and scientifically

a

accurate

do

now

possessed,
that organized

power

possesses

Here is

not

public injuries be tolerable?

has

never

crippling

labor

does

of the

activities

the

reckless violence

if

of

threat

that

should

which

strikes

are

maintained

to

the same Federal, and state crim¬
inal^ lawlessness
by which strikes
are

maintained

eral

and

are

enforced

state

to the same-Fed-V
criminal laws that

ican

was

of

a

Jtt fWrmnriam

against

assaulting,
killing,' terrorism

become neressary to prevent the maiming and
employer from filling the jobs va* and destruction of property, when
cated but not abandoned by the they occur anywhere except in a
was made over six
years ago. This
strikers.
The so-called right 10 labor dispute,
i
/•',
•
;
menace
has grown greater with strike is not in fact
simply the
It isn't the
difficulty of this
every passing year.
The menace right to quit a job.-It has been di- \ problem-—of
analyzing and solv¬
of
labor
monopolies to a free:'scribed as'the right to hold a job ing it-Mhat
prevents a solution.
economy, to the maintenance of a while not working at it, the right It is
simply the political, financial
competitive system of free enter-" not only to stop working, bat hlso. and
^corrupting powers of the
prise —indeed,
the
menace :; to
to prevent any other person from labour union oligarchies that stifle
maintaining a free government of taking the striker's job.
every
effort to end or even to
a. free people—is much more eviThat is why the foul
shape of check their monopolistic; controls
dent 'and
threatening today than terrorism is always lurking in the- over industry. There are a com¬
six years ago. Yet there is no shadows
behind the most peace- paratively few
closely allied labor
more likelihood
today than in 1950 ful appearing strike. If any real bosses in control of
17,000,000
that necessary and obvious
gov- effort is made by employers to harshly
disciplined unionists;
ernment action will be taken to
keep operating and by willing Their organizations are financed
curb further advances and
aggres- workers to work despite a strike by an annual minimum of half a
siOns of
these
ever
larger and ban, then suddenly appears crude billion dollars regular dues.
They
stronger monopolies.
violence in support of the strike arC able in
emergencies to raise
—always hypocritically disavowed millions morefor propaganda, and
which

menace

•

EVERIT B.

confronting the Amer-

people, when

this

statement

Chilton

"

his retirement in 1954.

.

by the strike leaders.

Monopoly

Today

we are faced

with

<*ent merger of the two
great labor

a n d intimidation of
woiild-be workers and their fam-

I,. and
the C. I. O., for the declared
purpose of limiting competition betwppn them. - TnHnv wo nro fnnaA
tween thpm
Today we are faced
•

with

ilies

do

not

happen by

^cidence as
bursts

.

of

«m.

mere

spontaneous

individual

co-

out-

violence.

^

j

right of labor unions to impose
compulsory unionism be accepted

in^

and that all state and Federal laws

an^ similar organized; lawless-

"horjzed strfkl

sustaining the: constitutional right
of a worker to refuse to
join a
labor union be repealed.
Today

Legalized

^

activities.

Power

unions

as

who regard labor
great democratic op¬

a

of

Lawless

before

never

Violence

by labor union

defeated' and

they

fragmentary

and

inade-

.

I
;

they will be quate newspaper reports of recent
replaced by more strike violence against the Louisnow disgrace ville and Nashville, the Southern
©ur public offices.
Today we find Telephone-Company, the Perfect
big labor supporting every pro- Circle plant and the Kohler Comgram for bigger and bigger gov- pany should have at least made it
ernment with only one qualifica-plain .that that foul shape of.ter-^
lion: That big labor remain the- r°rism lurks behind every -strike
one dominant element in oifr sothreat, even by-the most respectciety, which by legal and illegal able and comparatively law-abidexemption from the criminal laws •*}£. wnl,ons\ ^ should .be doubly
exert

can

coercive

a

power

greater than that of

us

plaln why such organizations with

over

defying violence,
actually begin a

exemption of the biggest
monopolies in the nation from

in

labor

combined the

.economic

-•••;•*

The

powers

demands

,*

"hear

*

not

be

.

r

well worked out and

a

speech

Commerce.

a.

strong, responsible, dem¬

•

there

is

either

i -or

V
/

.

submission

:Kenyon

\

;

.

groups

"to shift

-

i

I
i

-

<

into

friendly

nature, broadminded, generous and considerate of
qthers always.
\ To his friends and business associates, Mr. Terhune was
personification
out

by

do' is to cry

wilderness
.

How

long

V

will

na¬

of

aloud,

confused

even

in

a

misedu-

opinion.

*

„^

v

>

With

sales

the

distribution,

training.

There is

ject

no

How

and industrial products.

sound

diversification

25

Park

Box

C

75,

and

(Special to The Financial Chronicle)

BOSTON, Mass.—Richard Rob¬

NEW

ULM, Minn.
Walter E.
inson, Jr. is now connected with Gorg, Jr." has
joined the staff of
Palmer, Pollacchi & Co., 84 State State Bond &
Mortgage Co., 28

Street.

'

"

*

.i)

-

?

-

—

North Minnesota

Joins JoKn

GL'iSessler Co.

.

(Special to The Financial Chronicle)

;

BOSTON, Mass.—Saul M. Millis

man

G.

now

Sessler

connected

with John

Company, 10 Post Of¬
;

•

Street.

Fahey, Clark

(Special to The Financial Chronicle)

CLEVELAND, Ohio
R.

Mann

has

been

—

William

added

to

the

staff of

Fahey, Clark & Co., Union
Commerce Building, members of
the Midwest Stock

;>

>

•

Joins

.

Exchange.

an

The

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

,VV

-liiiili175,000
First

_•£

•

any
-

of these securities.
t

_

15,

1956

lawlessness

Colony Life Insurance
Incorporated

v./- >•

(A Virginia Corporation)

.

Common Stock

/

($2.25 Par Value)

.

by

acquisition,

company

in

depth

in

both

Price $12.50 per Share

Copies of the Prospectus may be obtained from the undersigned only in such States where the
undersigned may legally offer these securities in compliance with the securities laws thereof.

Johnston, Lemon & Co.

;

Scott, Horner & Mason, Inc.

Auchincloss, Parker & Redpath
sales,

Ferris & Company

growth

Place, New York 7, N. Y.

is
and

part

of

Management's

Financial

Stirling, Morris & Company

Rouse, Brewer & Becker

con¬

Interested in position where

1:

■

Shares

Directs ad budgets of over

Commercial




With State Bond &
Mtg.

tough riddle in the
can these monop-

criminal

the

Experience

sumer

policy.

Palmer, Pollacchi

(Special to The Financial Chronicle)

August

olies be curbed and these monop-

Able Administrator and Planner.

and

stalwart

H°vv 1° Curb Union ^Monopolyv

(38) in Advertising, Promotion and Marketing

planning

the

a

ments.—A. W.

fice Square.

'*f:f This advertisement is neither

society

our

il; EXECUTIVE If
$2,500,000,

of

American citizen, which was borne
lifetime of patriotic
sentiments, opinions and accomplish¬

• 4

+

A modern strike becomes, ac-- olistic powers be destroyed? The
cordingly, largely a trial of fi- answer is a simple one: Firtst, subnancial strength: How long- can- ject labor union monopolies to the
the employer endure his losses?
same prohibitory
laws and remHow long will the workers en- edies which are enforced against
dure their losses?
Sometimes the business monopolies. Second, sub-

is:

a

•

menacing

]:

question

Memorial

^

.

.

.

question:

f.

-

absolute

Strike

Holly

NEW ISSUE
;

Congress.

<

stoppage of production in accordance with union orders. ' ;
'
'
The Modern

to

Plaque," a benevolent organization to
and destitute workers in the shoe industries.
Everit B. Terhune whose refinement
and education were dis¬
tinguishing traits, was a man of lovable character and

immediate),*or the determination of

the

to

Herbert

him

Terhune

{[help incapacitated

tional monopolies that the least I
can

cated public

universally free from govern- from a competitive to a monopor punishment that ."olistic economy.!' '
"But,"-said the
they need to .be used only rarely: -Court, "the desirability of such
-In most instances when a strike is -exemption of- labor unions is a
called

-

,

tragedy in this super-growth, of

unions in combination with busi-

are ~ness

'submission to the union demands
•

\

In World War II, Mr.
Terhune organized the "Barrels of Shoes
In addition to these
activities, Mr. Terhune
was
a
trustee of the Fifth Avenue
Hospital and the New York
Medical College and in 1951 he
received the "210 Associates T.

cment restraint

•'-

-

at the League of Nations
representative of the,International Chamber

ocratic labor unions, there is such

is

so

-

a

f for Europe" campaign.

this,

as

all he could to aid in the develop¬

The opinions of the Supreme
Court are full of criticisms and
helpless rebukes of labor-,union
"lawlessness.
One
opinion years
ago pointed out that the law it
[was laying down permitted labor

we

less

-injuring, assaulting and intimidat-ing opponents of a strike have
so

,

.

lence.

enforced.

nowadays about
"[physical violence in strikes than

been,

such

with the labor movement and did

monopolies. They are bowi out of
legalized power of lawless vio-

'a few years ago.j This is because
the techniques of mass picketing,

/.••"

itself

young.

as

Hoover, while Secretary of Commerce,
membership in the Foreign Trade Committee. 1
published his book
"Whispering Europe" in 1925
dealing with the European situation. >\

crying in the wil¬
derness.) But to one who grew up

;> mere is no mystery about the
source or existence of labor union

without which labor

could

much

of

the physi-

on

call

the wrath and ruin that wiU

coercion

Despife notorious exceptions,

••

of

;appointed
•Mr.

to be like

ment of

longer

meeting in Paris

'wkeany att6mpt to break the
'

physical

economic

in fact rests largely
cal coercion

•

coercive

seldom need to
terroristic pro-

strike

enougjj to warn.any opposition of

find

we

violence -and

violence.

-

unions

Tj
The

eram

lawsefs0parUculaerlvnhar3ulPbecause

make

seems

are no

actually fast destroying.

are

To

labor bossism

govern-

The

■

'

and

I lb 1923, Mr. Terhune participated

mo¬

labor puppets than

The

cnt to. labor demands

;•

'who

nopolies exercising arbitrary and
often very foolish controls over a
free enterprise system to which
they profess devotion, but which

we hear loud threats that unless
politicians become more subservi-

vr- .)Vi-v

Boston Shoe Trade Club, a director of the
Sales Executive Club of New
York, and he helped to organize the
Forty Plus Club which endeavors to find
employment for men

half-socialists,

position to-what might otherwise
become a tyrannical
conspiracy of
big business operators to exploit
the people. Contrary to this de?
lusion, the American people are
actually being exploited today as

fiv

{[•first President of the

lawless

aggregations are
thousands of wellmeaning, deluded people, as well
as
by hundreds of thousands of

(

the magazine until

Plainfield, N. J., 79 years ago, was a man
principles and his life was distinguished
by many
benevolent, business and social activities. He was a founder

supported by

<

They are part and parcel of the
Picketing, the^autcr smasa-

sweeping demands that the

These

•

^orn

£

-°f hlgh Christian

political contributions that too
train closely resemble plain
bribery.

assaj1Jfs

federations, the A. F. of

■

dyna¬

miting,
stench
bombing,
wrecking> cable cutting, physical

re-

a

But

Co.,

a hip fracture.
At the outset of his
following his graduation from Harvard in
1899, Mr. Terhune joined the staff of "The
Boot & Shoe Recorder"
serving in
the subscription and
advertising departments until he succeeded
his father, William Lewis
Terhune-as publisher of that acknowl¬
edged trade authority and remained as head
of
career

.

F, of L. and C. I. O. Merger—

1876-1956

former Vice-President of The
Publishers of "Iron Age" and 15 other National
Trade

.Magazines, died July 24, from

i

,

s

TERIIUNE

Everit B. Terhune, the retired

_

,,f

A.

11

Goodwyn & Olds

Mackall & Coe

Birely & Company

Chronicle,

Wyllie and Thornhill

Alestcr G. FurmanCo.

)

and Financial

The Commercial

Chronicle

Thursday, August 16, 1956

.

..

(688)

12

in

tionary powers of the railroads
rate-making.
^

matters of

to

Thp npt

Sr
tWU

first

the

as

been

foreshadowed by

Vinous developments

tha't
'

v*v»v*vr^-

"

of

round

~

headlines recently
Both of these are in the same di¬
rection, which is for another lncrease 'in
service rates to meet
have made the

increase in gross revenues. The hood of Locomotive Firemen and
only roads in this group which Enginemen. The reason for hesithe 6% increase in freight rates failed to show a gain in net in- tation given by the Western roads
of last March 7 and the May 15%
come were the New York Central against going along with an ap™»ssf>neer
fare increase to have and its subsidiary, the Pittsburgh plication for a 5% freight rate iniJepn pntirelv inadeauate. Conse- & Lake Erie. These two showed crease at this time is in the quesnupntlv
Aug 10 the Pennsyl- declines in net income of $4.9 mil- tion of "putting the cart before
vania RR
New York Central and lion and about $157,000 respec- the horse." They favor awaiting
four
other Eastern roads peti- tively.
j
the outcome of the wage negotiationed the ICC for another 5% inOn the other hand, the results tions, and this makes some sense,
crease
in coach fares and for a of the leading "westerns" were
in the meantime, however, the
45% increase in first class fares, particularly
disappointing. The pressure on rail earnings is reEarlier, on July 26, representa- Santa Fe, with a $13 % million lentless despite vast strides to
tives of Eastern roads had already gain in gross showed $3.2 million stem
the tide of rising costs
begun a series of meetings to dis- less net than in the first six through dieselization, CTC, mecuss the advisability of asking the
months of last year, the Union chanization of road maintenance
ICC for an additional 5% increase Pacific with a $5 million gain in and other modernization at great
in freight rates and it was re- gross
reported $2.1 million less capital expense. As a result, and
ported on Aug. 14 that the roads net, and the Southern Pacific, aggravated by the effect of the

Your

of

ICC

the

which

further

being

are

is

relief

rates have been
...

latter

months of this year
These roads, not

to the East, but

is

reck-

confined

representing in-

a good cross-section of the
nation, showed an aggregate increase of
$264 million in gross
revenues
for the period but, in

stead

spite of this, the net income of the
down $2 V2 million from

group was

of this is that,
while the. current move for rate
increases is being spearheaded by
Eastern roads in both cases and, in
{he case of the proposed freight
rate
increase
application, relucThe strange part

and

has

hesitation

by

Southern

far at
less

,

ments have long sought the discretion and the latitude to make
such rate reductions as seem expedient to hold traffic on the
rails. One of the cardinal points
of the Weeks Report, or Cabinet
Committee Report, as it is also
called, is to accord to the roads'
more latitude along these lines.
The
latter possibility is some

been

the

groups

time in the rather distant future,

least, the Eastern roads are

in

need *in

most

cases.

For

agreed to

gain

in

net

«">•

casions I have

it

'

them
r a

t

e

each

sepa-

iH ■€

the ticket they
Carlisle Bargeroa

they

vowed

is

that

such

al¬

Eisenhower
intends
to
make as few speeches as possible,
and of course, to keep them on
a high and dignified plane, Nixon
will have to go to work. This he
will be glad to do and if unre¬

on

was

situation

The

if

but

Nixon

And

Democratic

the

though

Eisen¬

for

hower

house¬

going to be the Demo¬
principal target.

crats'

"Sp*

100%

be

to

from

clear

a

that he is

m

1 y » and
claimed

is

much of

Eisenhower's.

keynote speech by the boy orator,
Governor Clement of Tennessee,

'a® %"-,>•

encountered

out

of

deferral

tax

due

would not vote

strained he will do a most effec-

qi

less

More recently their

for it.

fast

to

amortization as compared
about $185 million in 1955.

with

give

would

who

sen

their

stance

for

hasn't

done

this.

sub- They

them

Stassen

feeling.

let

feel

They

down.

are,

in fact, afraid of him.
that Nixon should do,

0ne thing

and jf be has his way, the
tions are that he will do

Stassen's

importances generally

a

$158^ million increase in aggre-

S£°° HE?
formula &

only p u b 1 i c 1 y

ex-

that

is, to

indicait. And

challenge the Demo-

nominee to

wanting cratic

pressed reasons for not

study

6

the

defer until

submission

of

hearing

bill

the

rrr

on

hoc

a

debate,

S

*9
'

consti- in the Administration's policy in
world affairs or domestic affairs
as
Nixon.
He has
a
wider
acquaintance with world leaders
you are for Eisenhower but than any vice-president I have
't stand that fellow Nixon, ever known.
He has more than

professionals,

do

not

rank and file

the

dislike of

by any means. In fact, it
to be quite the fashion to

™

cr.h«/i,ri^

nnsseno^r

the

,or Oct

creates

rer»r»rted

was

+bp

fare

I

'

am

wondering

if

these

coming from different
borhoods, having no contact
with each other, may not be repmen,

Form Investors Service
DALLAS, Texas

cPr„?np

—

®.

fi

9*99

LI

rAdft

Tnh«

from

nf"

sen

ni

year

President and

Treasurer; and

which

Robert W. Pbrter,

Secretary.'

Richard

B.

rendering

is

Johnson

Vice-

discre-

had

he

which

rendering

w

that

In

tative.

,c

fn J securlt£s hu^e^
dent?

next

a

would thus broaden

Tt

ig

cal

this

of

sent

r

year

Committee earlier this

merce

cluded in this sampling showed a

million

million

however, since the House of Com-

instance, the 10 Eastern roads in-

$9

manage-

go,

Southern
and
respectively, the
25-road sampling of the half-year
results makes it appear that, thus

shown

are

1955 sassssesasaa
higher they
and rail

SSif.

tance

oc¬

as

hold figure as

dp

Nixon on the ticket is that he. whether he is Stevenson, Harrirate increase by havhig^to meet but Gf great moment to at least
low-rate Mississippi River barge three Eastern roads, is the ques- would detract from it; he would man or some dark horse,
detract Tk>m it by 6%, said Stag-j * In this way the public would
competition. Such cases as. these tion of another increase * in passfen.
Why? This Stassen tesn't "have an opportunity to measure
two raise the
que^ion of how 5enger fares. According to the ICC said and the six men whom I have him, in the event he should bemuch of a further allowable gt^ndcird accountinc formula the
freight rate increase can actually Pen
lvani
RR f 1955 j 't
j. in mind seem to be left high and come President, with the DemoThey
are
beginning
to cratic Presidential nominees. My
be placed in effect beforei the most $50 miulon and the New dry.
against guess is that he would fare very
railroads- begin to price them- York central aimncf wn mill inn wonder why they are
And the
prospects, are well.
selves out of more business. This on th * nasseneer business It has Nixon.
is the question that railroad man- b e
stated
however
that
the that in the end they will be found
To say that Nixon would not
agements will have to decide in
Fe accepting the Californian.
make as competent a President as
an increasing number of cases if stance was nrobablv closer to <610
If Stassen's activities have had any man the Democrats can bring
freight rates are advanced again. SfnioA on a Ash or w
this effect to any large extent, up is to be blind to the facts. It
Limitations based on what the DOckef» basis and this raises the then they have been helpful to is doubtful if any Vice-President
traffic will hear will probably be QUestion of the validitv of the irr Nixon. These six men, not politi- in our history is more grounded

highlighted in a study of the resuits of. 25,roads which have thus
far reported for June, and from
which the outcome tor the. first
oned.

and net. Both of the
hampered in taking

advantage of an allowable rfreight

nullified increas-

ingly by a proportionately greater
increase in costs. -Thissituation is

six

Ohio reported declines

in both gross

for ex¬

increased

of

benefits

the

port,

Mobile &

blessed with a

rebirth of coal shipments

has become

•

on

different

their with $7.9 million more gross,
showed a $4 Va million drop in net.
needed The Southern group fared moderhas become increasingly evident ately better but with disappointin the income statements of the ingly small gains in net by the
roads for the past several months. Southern Ry. and the Seaboard turned in last year. This, in spite
while the Illinois Central showed 0f the fact that this year's net will
With few notable exceptions, as in
the case of the Pocahontas roads a small drop in net and the Gulf, have the benefit of some $200
notified

that

attitude tive job on the Democrats. This
seems
to have softened.
Harold js what the professional RepubliStassen, it seems, has disappointed cans like about him.
It was he
them.
They welcomed Stassen's who made the fight in the Consteel strike on Eastern roads par- opposition to Nixon and expected gressional campaigns of 1954, and
ticularly, some observers place ag- him to explain to them why they getting down to rock-bottom, it
gregate Class I rail net at some- were against Nixon. They didn't is
effectiveness
as
a
camthing under $900 million for 1956 know themselves, but they were paigner that makes the profesas against the record $9^5 million against him. Now here was Stas- sional
Democrats
despise
him.

intention to do so.
That

is

It

them.

just

on

had

BARGERON

By CARLISLE

^eCn^dfb/thf:

have proven

mounting costs that

the News

Ahead

con-

increases.

wage

correspondent has in mind Presidential c a ndid a t e again,
gate gross as compared to the first Conductors and Brakemen and by
six
men
who have
been most which seems to be likely, a lot of
six months of 1955 while, exclud- the Switchmen's Union of North determined in their opposition to work has got to be done for him
ing the specially favored C & O America, and on Sept. 5 repre- Nixon.
They have
nothing in in the campaign. The Democrats,
and Norfolk & Western, the re- sentatives of the railroads begin
particularly the Americans for
maining eight showed a $1.4 mil- negotiations for a new contract common with
Democratic Action, have done a
I
lion gain in net income on balance with the Brotherhood of Railroad each other.
thorough job on him. His name
out of a $122.5 million aggregate Trainmen and with the Brother- do not group

railroad operhalf of this

results of

in

ations

but are also

costs

fronted with the makings of an¬

other

Rail Picture at the Half-Year

Portent, in the

...

parry

of

thrust

D. McKEEVER

By GERALD

with the task of
the current up-

faced

only
trying

From

meantime the roads are

the

In

indebted

and
to

a
no

event

Stas¬

public service
intention of

Nixon would
.\y\s.

be

him.

there is. no doubt
whatsoever that if the Republicans do name him as their ViceHowever,

either Stevenson or Harriman, although the former has done a lot
of world traveling and Harriman,
as a Roosevelt lieutenant, has
had

be

lot of experience in Europe.

a

To

say

better

pable

that Nixon would

Truman

than

under

White House is absurd.

at

156-08

Riverside

West, New York City.

Drive,

We

With King Merritt

'

(Special to The Financial Chronicle)

Blackstock

Write for

a

copy

Primary Markets in

ATLANTA, Ga.—Harris M.
Bash,, Jr. is now affiliated with
King
Merritt
&
Co., Inc., 849
Peachtree
Street, N. E.
In the
past Mr. Bash was with Hancock,

Common and Preferred

;

Specialize in

'

RAILROAD SECURITIES

ST. PAUL & PACIFIC R.R.

&

EQUIPMENT TRUST CERTIFICATES

:

RAILROAD BONDS

Co.

of the report recently prepared! fey

Kerr & Co., Engineers.

Hayden Stone Adds

We will be

glad to furnish

:

•

(Special to The Financial Chronicle)

information regarding Railroad Investments

BOSTON, Mass.—Harry H. Kenhas been added to the staff
Hayden, Stone & Co., 10 Post
Office Square.
'

ney

of

&

Kneeland

Co.

McMASTER HUTCHINSON & CO.
105 SOUTH

„•

Members Midwest Stock Exchange
Board

.

V




of

Trade

-

4

LA SALLE STREET

CHICAGO 3

V

Members

I

ȣ%
CG ,640

Planning

(Special to The Financial Chronicle)

Building

CHICAGO

Joins Investors

-

641

BOSTON, Mass.—Rufus M. Shaw
has joined the staff of Investors
Planning
Corporation
of
New

England Inc., 68 Devonshire St.

Midwest Stock Exchange

American Stock Exchange

He

would be as old as was Theodore

G. E. Lambert Opens

fices

the

eventuahty that called Truman to

George E. Lambert is conduct¬
ing a securities business from of¬

CHICAGO, MILWAUKEE,

not

equipped or more ca¬

(Associate)

Telephone

.

Financial 6-4S48

(689)

13

Roosevelt when he became Presi¬
dent.

that

have
and

it

him

would

terrible

to

to

issue,

him

it

is

going

this

to

That

Nixon

well

in

but

I

would

the

show

up

an

The Financial

Shapero

is

Keller

—

Zero Court Street.

,•

(Special to The Financial Chronicle)

i

DENVER, Colo,—Jack Levy and

Jesse L. Nelson
umbia

Securities

corporated,
Mr.

are now

with Col¬

Company, In¬
Building.
formerly with

Equitable

Nelson

was

First Securities of Denver.

<

good

very

buy, while

to

DENVER, Colo.

John

—

W.

seems

Company,
National Bank Building.

First

GRAND
Jess
W.

W.

JUNCTION,

Felin is

' *

Colo.

with

now

—

Harry

Peters, 411 Main Street.

koocrc

neiiorunn

not

may

rities

in

general and about their

holdings in particular. How¬

Field

Aug. 23, 1956 (Omaha, Neb.)

w

Nebraska Investors Bankers As¬

Aug. 22.

bearish

Sept. 1-2, 1956 (Minneapolis,
;
Minn.)
National; Association of Bank
Women

34th

annual

Convention

meeting

at

the

and

information avail¬

same

articles

in

of financial

sues

concurrent

is¬

As far back
tive

study

the

Sept. 14, 1956 (Chicago, 111.)
Municipal Bond Cluh of Chicago
.

20th

annual

field

Medinah

a

at

the

Country

ceded

day

Club
(preSept. 13 at
the University Club of Chicago);

,

by

dinner

Sept. 20, 1956 (Des Moines, Iowa)

in

versity

of

Chicago*

\

"Fling-

Ding" at the Forest Hills Coun¬

try Club.
Oct.

period

4-6, 1956

(Detroit, Mich.)
of

Stock

of

20%

Oct.

sults

ending

to

losses

(Palm

Springs,

value

of

the

used,
at

would

18

be about

and

basis,

of

basis

This is quite

are:

the

the

of

on

14

of

a

think¬

15

1955

some

We

present

Jones

the El Mirador Hotel.

of

14. 1956

(New York City)
of

Exchange

meeting of Board of Gov¬

ernors.

25-30,

1956

(Hollywood

Beach, Fla.)

at

America
the

annual

convention

Hollywood Beach Hotel.

April 21-23, 1957
Texas

Bankers

meeting

Group

(Dallas, Tex.)
of

Investment

Association

at

Hotel.

the

the

annual

Statler

Hilton

3-6,

,

and

might

have

20

draw

prices

long way
to go. It goes without
saying that
they were too high at their peaks
in 1946, 1937 and 1929, and
any¬
one

a

continuing to hold stocks

and

there

is

no

un¬

again reached,

are

assurance

that

they will be reached, is taking a
substantial

risk

clines suffered

Industrial
order
1937

of
and

because

25%

80%

the

de¬

by the Dow Jones

Average

its

that

it

on

the

for

1946,

for

53%

for

1929.

mechanism

a

power

with

machines,
"automation," have

for

a

in

Not

profits

plus

pletion,

Decline

:y V

is

a

growth

possibility

stocks

are

sustained

were

The

fact

that

by their
they were

'

serious

New

is

all

the

the

decline.

panies

that

to

be

today

have

many

years.

have

This article is not being written
to

a

turning to, or adhering to, basic
fundamental standards of value.
In

spite

the

of

high.
and

high

level

Calif.—J^ck R.

John

D.

Leatherman

added

to

the

staff

of

Sterling Securities Co., 714 South

adherence

close

mentals

can

to

funda¬

determine which

&

Company.

Leo

of

Sound and careful analysis

a

This

announcement

is¬

V

MacLaughlin Adds

(3pecial to The Financial Chronicle)
;

PASADENA,

Rickords

has

,

Calif.—Floyd

been

staff of

Leo

curities

added

Company,

Robles

G.

to

W.
the

MacLaughlin Se¬

Avenue.

54

South

Los

"

is neither

an

offer to sell nor a solicitation of an offer to buy
offering is made only hy the Prospectus.

any

of these securities.

The

August 16,1956

Trucks, Inc.
5x/i% Subordinated Debentures due 1968

un¬

a

rapid

more

continue

to

the

to

to

do

so

ability

increase

certainly can be
many of the com¬
growth companies

had

With Warrants

The

to

Purchase 191,090 shares of Common Stock

(#5 par)

Company is issuing to its

common stockholders, rights to subscribe
held, together with
subscription privileges, all as more fully described in the Pro¬
spectus. A unit consists of $500 principal amount of Debentures with
attached Warrants to purchase 5 shares of Common Stock. Subscription
rights will expire and become void if not exercised by 3:30 P.M., New
York Time, August 30, 1956. During and after the subscription period,

for

one

unit for each 50 shares of Common Stock

additional

the several Underwriters may offer units of Debentures with attached
Warrants as more fully set forth in the Prospectus.

this

is

It

study of the market action
large number of growth stock

issues

been

Subscription Price $500 Per Unit Flat
(Without Accrued Interest)

;

basis.

generous

of

ANGELES,
and

suggest a; downward trend in
tlid economy or the stock market. Spring Street. Mr. Evans was pre¬
Rather, it is an appeal for re¬ viously with Samuel/ B,- Franklin

quality for
simply that
only in the last few years, this
growth
factor
was
recognized,
labeled and capitalized on a most
A

Evans

similar

and

stock that in¬

a

due

There

doubt

(Special to The Financial Chronicle)

LOS

growth

depreciation, de¬

management

profits.
no

to

Two With Sterling Sees.

owners.

company's net

price at

future

the First National Bank of Grand

Junction.v''

Stock"

than the general market and

expected

Mr.

that

York

Concepts

a

"growth stock" is

in

New

over¬

issues did not make them immune
from

Company,
828
Street, members of
Stock Exchange.
Ramsay was formerly with

the

times, growth stocks were
high and substantial losses

too

and

Seventeenth

heard

was

has been well known for years to
those
skilled
in
accounting. A

is

Boettcher

emphasis being
growth
stocks
at

to

it

to The Financial Chronicle)

DENVER, Colo. — Robert H.
Ramsay has joined the staff of

use

bookkeeping items. Although,

of

*

$19,109,000

amortization

in

Com¬

Joins Boettcher & Co.
:-'b-i(Special

continued

til recently, not having rated
a
title, the concept of "cash-flow"

rate

Securities

before

"Cash-Flow" and "Growth
Are

American

and Honnold & Co., Inc.

New Issue

been

shows

that

the

large

ma-V

jority had generally

average

about

Copies of the Prospectus
this

announcement

may

securities in

any State in which
only such of the under'
may legally offer these

be obtained in

is circulated from

writers, including the undersigned,

as

compliance with the securities laws of such Stales.

price

movements

three

ago,

years

at

until

i

and then began to ad¬
much

rapid rate
issues, when the
growth idea began to gain favor.
than

a

most

seems

more

Dominick 8C Dominick

other

that

these

new

(Hot Springs, Va.)

cast"

J,

No,

cago,

Stock

by

Journal

of

Market

Alfred
the

Forecasters

Cowles,

Econometric

Society,

July 1933, University
Chicago 37, Illinois. "
3,

Fore¬

Econometrica,
of

Vcl.

Chi¬

have
on

been

the

rationalize

growth

evolved

stock

to

Eastman, Dillon & Co.

Kidder, Peabody & Co.

terms

capitalize

market boom

the

issues.

current

It

is

and

action

not

to
of

strange

«

affiliated

with

Wall Street.

"Cash-flow"

become

termed

years,

the word "automation"
in

spon¬

now

long period of

■

T.

Birkenmayer & Co., Denver
Building. He was formerly

Club

'

doubt that

no

intricate

has

4

Robert

—

having

move

There is

Colo.

concealed

so

to

appears

taneously.

vance

were

is

motive

T;<.

•

National Security Traders Association Annual Convention. — "




15

comparison

stock

mation"

It

.

1957

to

23 times in

a

that

still low and

14

1937

one

conclusion

*"Can

Nov.

in

From

ratios

til those ratios

Investment Bankers Association
of

times

these

are

Stock

17

the

Average

selling at about
times 1955 earnings.
1946,

earn¬

highs

Industrial

of

Kittleson

time

other

earnings.

carefully and see what we
find out about them. "Auto¬

can

California

*

(Special to The Financial Chronicle)

DENVER,

see,

priced. In 1929 and also at various

times

"cash-flow"

the

accorded

different and most

a

First

r:

;With Birkenmayer Co.
•' ■">

varying degree in

-

,

'

to

ten-year

to

with

,

Company.

Every stock is worth a certain
price, and, if it is bought for more
than
this
price, the purchaser
obviously risks suffering a loss,

highs
five-year

a

on

"automation,"

creases

price

recent

was

times in 1929.

Nov.

is the

At

This compares with

Association

for

formerly

Growth Stocks Not Immune to

price

all, but that they have existed for
let us examine these

by

companies

York
and
San
Francisco
Stock Exchanges. Mr. Hansen was

experienced

about 10%.

at

f

recent

about 20

instead

the

on

Also

made

basic standards

of stocks

ratio.

National Security Traders Asso¬
Annual
Convention at

Firms

33%.'

exists.

Calif.)

Nov.

of

stocks

this

ciation

'

in

insurance

of

Dow

1956

financial

16

study made almost
25 years ago substantiate t'.is di¬
versity of opinion which still

ings

24-27,

concerning

by

the four years from 1928 to 1931
showed results ranging from gains
of 27 % to losses of 33 %The re¬

Exchange

ernors.

V

fire

meeting of Board of GovV -y:i

Firms
'■

Uni¬

July,
1932
showed results ranging from gains

One

Association

Re¬

services for the four and one-half
year

commitments

sociation seventh annual

for

of

the accuracy of purchase and sale
recommendations

20

Rockford Securities Dealers As-

r

exhaus¬

New

pany

prices.

average

words

Cowles

Economics of the

Iowa Investment Bankers Asso¬

Sept. 27, 1956 (Rockford, 111.)

an

Alfred

Commission

ciation annual field day at the
Des Moines Golf and Country
Club.

1932

as

by

Cowles

search

t

were

year

many years.

publications.

Diversity of Views Substantiated

and

Hotel

Radisson.

*

ten

or

earningsj ratio

.

:

of

become associated

continue,
era

and "growth stock."
If you will the Dow-Jones Industrial
sociation annual; frolibhnd field, able to all interested
Aver¬
persons one
day; at the Omaha Country Club. would expect a greater unanimity carefully consider these terms and age today, there are many issues
A cocktail party at the Omaha
of opinion. It is not uncommon to their definitions, you will realize selling at attractive prices as well
that they are not new
Club will precede the event on
read
concepts, at as many which appear to be too
simultaneously bullish and

.

r

in

'industrial

today,

recently

has

Irving Lundborg & Co., 310
Street, members of the

Sansome

both business conditions and stock

.

years,

.with '■ the

have

therefore,

few

next

is it not rather strange to
inflated valuation.
find such varying points of view
It seems that with the advent
concerning the
same
securities
of the .current stock market boom
among highly skilled and experi¬
there has been added to the no¬
enced, professional security ana¬
lysts? Methods of security anal¬ menclature Of finance a 'iiumber
of new technical terms. Three
in
ysis have be en quite well
great favor at the present time
standardized over the
,

EVEN TS

the

prevalent

new

to¬

FRANCISCO, Calif.—Roy

Hansen

with

cur¬

present,

If five

basis
secu¬

ever,

COMING
Investment

and

stockholders,
who

of

will

spite, of all the

fluctuations

was

reasonable

SAN

A.

everything else being equal. Due

earnings

be too well informed about
own

In

in¬

vestors

•

(Special to The'Financial Chronicle)

among

ordinary

which

a

are

ings.

of opin-

ion

Harry W. Peters

be

market

at

in

Irving Lundborg & Co.

industries.

stock

profit

stage

(Special to The Financial Chronicle)

manner.

decline

a

for

important

R. A. Hansen Joins

of

earnings, which are at peak levels
in a great
many cases, the risk
of loss becomes
greatly magnified
in the event of a decline in
earn¬

ex-

differ¬

ences

to

much

control

In iact, we

experiencing

decline

a

was

ten years

figure

a

approximation

quite

pect

it

years' expectancy. However, with
the present
emphasis on current

It

natural to

with

at

considered

con-

Schweigert has become affiliated
&

arrive

the

opposite

and

is

is looking for "a

no one

again.

stocks

order

will

elusion.

five

those

as

This procedure

day's stock market.

Stay

doubt that there is any ques¬
that bull and bear trends in

ing

in
to equalize any
unusually
good or poor year's result, and to

analyst,
just as
thorough an
after

come

Joins Walter & Co.

With

tion

practice, when calculat¬
earnings, to use an average

of between

other

analysis,

(Special to The Financial Chronicle)

Walter

I

greater

years

to

there

moderate

more

a

rently

common

ing

'

an-

recent

well

as

sale.

a

will

although, admitted¬

economy,

the

until

Cycle

think

governmental

certain

Misconception of Present PriceEarnings Ratio
Up

not

in

1929"

in

How
is
it that one security
analyst will analyze a particular

stock and come to the
conclusion
that it is undervalued and
is a

do

Certainly,

v

Two With Columbia

buy,

a

are

opportunities

ly,

Examine popular

moderately, despite

more

are

very

greater

Government control.

Co.,

which

this

our

peak

earnings decline.

cycles will continue, though

with

Securities

an

sues

coun¬

doubt that the business cycle will
continue to function in spite of

and that present emphasis
levels—can witness a

go,

at

prices

the

Business

concepts of "cash flow," "automation" and
"growth stock"
and declares
"they are not new concepts at all." Believes

Clarence

affiliated

now

Brothers

can

stock

the bargain

mitigate the risks inherent in
all stock ownership and increase

I

higher price-earnings

earnings—many

magnified loss risk with

Chronicle)

Mass.

current

when

on

anyl, "growth stock"?

J?"'.

.

are

ratio, the lower the decline

quite

With Keller Bros.
BOSTON,

■

basic fundamental standards of value in
assessing profitincrease opportunities. Points out that the

comparison.

(Special to

there

C-/'

City

to

satisfied

am

'V

in ' 1949,

really

ter, very little, if anything at all,
was heard about the three
magic
words, "automation," "cash-flow"

divergent viewpoints by security analysts
regarding stocks' value, despite standardization of
security
analyses methods, leads Mr. Heilbrunn to recommend return

to

It would not only annoy

nominee

that

By ROBERT HEILBRUNN

Heilbrunn & Company, New York

show that he
is of Presidential stature.
A good
way to do that would be to chal¬
lenge to debate the Democratic

nominee.

!

V-

in
the
White House,
Eisenhower's health an

inescapable
up

be

that,
were

Let's Stick to Fundamentals

campaign against Nixon

with

be

•'

•

But the
is

Stone 8C Webster Securities

Corporation

White, Weld 8C Co.

The Commercial and Financial
14

Chronicle

Thursday, August 16, 1956

...

(690)
t

«■

against sterling,

ing

Sources of

•

Sterling Strength

constitute

Today and the Foreseeable Future
the

stronger"; that

any

British gold "reserve position is now
inflationary military measures could easily

ernment would not hesitate to use

should

an

r
j

reinforcing physical controls

arise, prominent British Economic Ana¬

emergency

for assuming that the
government will do everything to avoid . . . [sterling] depreciation." Dr. Einzig avers the government is definitely opposed
to exchange flexibility as a prelude to convertibility, and dis¬
agrees with policy allowing London banks to deal directly with
foreign non-banking buyers or sellers of foreign exchange.
lyst believes "there is

I
I

reason

every

LONDON, England—Since the
beginning of the Suez crisis, ster¬
ling has been distinctly weak. Al¬
though at the time of writing it
is still slightly

due

ficial

of¬

to

support.

So far the

ex-

of this

te nt

support is be¬
lieved to have
been moder¬

sterling is due to this factor, it
need not cause any concern, be¬

ate,
incom¬
parably small-

would

that

support need¬
ed
in August
Dr. Paul

Butler's

intentions

ment's

flexibilty

loose

later

or

bought in

the

dollars

the

any

psychological

case,, so

effect

of
the

—

Possible

Speculative

Pressure

An

about, the

let

sterling

of

i 11

the govern¬

on

be

the .crisis merely puts forward
autumn demand.

1955 when Mr.

Einzig

reticence

advised

sooner

cause

the

than

er

4

a "shooting war" or a
large-scale mobilization. But the
crisis
has
already produced
a
noteworthy psychological effect.
Even though speculative pressure
on sterling is not excessive, there
is a great deal of commercial buy¬
ing of dollars in advance of sea¬
sonal requirements which usually
begin to make themselves felt
towards the end of August. To the
extent to which' the weakness of

$2.78, this may
be

J

should be

limit of

lower

£

appreciable among the factors af¬
fecting sterl ing, unless there

its

above

wwssi

aggravation of the crisis, in
addition to its material effect on

a

The

handicap.

a

Connecticut Brevities

main

r; ',

of

source

Pratt

The

potential

United

pressure is not a speculative pres¬
sure
in the pre-war sense but a

of

& Whitney Division
Aircraft
Corporation

recently

leased

about

that the plan was in effect,
profit-sharing distributed was

year

the

square

has

one-third of the

than

less

79,000

distribution.

feet of floor space in a
building in Middletown formerly

deferment of payments

be offset by accentuation of the credit squeeze; and the gov-

]>
'

if the

for British
goods and a postponement of pur¬
chases of British goods in antici¬

By PAUL EINZIG

Reporting that

even

inability of London banks to grant
credit to overseas borrowers does

owned and occupied by Russell
pation of a devaluation. From this Manufacturing Company. The
point of view it is well to bear in building will be used in connec¬
mind, however, that during the J. tion with the development of a

*

Corporation,

has recently

Haven,

duced

new

a

"

*

Soundscriber

The
New

recent

;

-

*

intro¬

Soundscriber dictat-.

ing machine which it calls model
"200" and calls the smallest, light¬

past six months the British gold nuclear aircraft engine, a project
reserve
has strengthened consid¬ which Pratt & Whitney has been
erably, and it will be further rein¬ working on for several years.
forced by the dollar proceeds of There is presently under construc¬
the Trinidad Oil deal which may tion in the southern part of Mid¬
reach the treasury in the not too dletown a government-owned nu¬
distant future. Had the Suez crisis clear laboratory which will be oc¬
occurred 12 months ago, it might cupied by Pratt & Whitney. In its
have produced a fatal result from- semi-annual report United Air¬
the point of view of the stability craft showed earnings for the first
of sterling. The reserve position six months of the year at $3.02
is now stronger, however, and an per share of common stock. At
accentuation of the credit squeeze June 30,1956 contracts, orders and
to
could easily offset any inflation¬ letters of interest amounted
about $2.1 billion and a total of
ary effect of the military meas¬
ures that may become necessary.
53,877 persons were employed.

est

compact dictating
its type. The new

most

and

of

instrument

pounds and is

machine weighs six

2% inches high, 6
inches wide
and 10 inches long. With the use
of an inverter it can be plugged
the

into

lighter

cigarette

of

an.

auto.

Halsey, Sfsisri Group
Offers

Equip. Tr« Gtfs.

Stuart & Co. Inc. and
associates are offering $6,873,0.10
*
*
*
of Pennsylvania Kaiiroad
3%%
Emergency and Physical Controls
A new corporation was recently
series FF equipment trust certif¬
Moreover, should an emergency formed by the merger of The
icates
due
semi-annually from
arise, the government would not Bush
Manufacturing
Company,
April 1, 1957 to April, 1, 1971,
hesitate to reinforce its disinfla¬ West
Hartford, and C. A. Dunham inclusive, at prices to yield from
tionary measures by means of Company, Chicago, Illinois to form
3.40% to 3.90%.
The offering is
physical controls. Indeed, since Dunham-Bush, Inc.
Bush
has
subject to award and to approval
Mr, Macmillan is not at all prej¬ manufactured a line of space cool¬
by the Interstate Commerce Com¬
udiced against physical controls,
ing and refrigeration products and mission.
an aggravation of the crisis might
Dunham a line of heating prod¬
The certificates are the second
provide him with an opportunity ucts. The outstanding capitaliza¬
and final installment of an issue
to override dogmatic resistance to tion of the new
company consists
aggregating $14,433,000 principal
them by some of bis colleagues in of
3,761 shares of 5% cumulative amount which will be secured by
the Cabinet. A return of petrol
preferred
stock, $100 par
and the following new standard-gauge
rationing would go a long way 087,716 shares of common stock,
railroad equipment estimated to
towards
correcting the adverse $2 par value. It is estimated that
cost
$19,320,000:
one
passenger
balance
of
payments.* Building combined sales of the two com7
train consisting of an auxiliary
licensing,
steel allocation,
and panies will amount to about $24
power car and seven coaches; 906
various import controls would be million this
year.
' box cars; 797 hopper cars, and 200
reintroduced
if necessary.
This
*■
*
*
flat cars.,.
'
^
\\
would become politically possible
The Connecticut Water Com¬
Associates in the offering group
without any loss of face, for any
pany has been formed as a merger are
R. W. Pressprich & Co.;
triumphant Socialist claim that
of Guilford-Chester Water Com¬ Baxter, Williams & Co.; Freeman
"after all, Tory freedom does not
pany and The Naugatuck Water
& Co.; McMaster Hutchinson
&
work" could be countered by the
Company and the acquisition by Co., and Shearson, Hammillt& Co.
perfectly valid argument that the
the new company of the water
Suez crisis has created a new sit-,
properties and franchises of The
uation that justifies a reappraisal
Joins Hutton Staff
Connecticut
Light
and
Power
Halse.y,

,

flight from the pound. This time

the

it

the

Butler's

Mr.

made

successor

of

payments

and

on

inflationary position, would
affect sterling by causing with¬
drawals of foreign balances from

the government
is opposed to changing the parity
of status of sterling.
clear

quite

balance

that

London

would

and

accentuate

speculative pressure. From this
of exchange flexibility, headed by point of view the high interest
Lord Hinchingbrooke, intended to rates prevailing in London may
attack the government's attitude become a source of weakness, be¬
enthusiasts

Some' conservative

in

cause

debate

a

planned for August 2,
which Parliament rose
summer
recess.
Since, how¬

.

—

they have attracted foreign of economic

policies.11:

•

,

,

fects of the Suez crisis. The extent

to which military and other meas¬

with

(Special to The Financial Chronicle)

Company. The new c o m p a n y
crisis should
serves parts of 17 towns in Con¬
shortsighted lead to a marked deterioration of
necticut. Giving effect to the sale
policy to try to bolster up a cur¬ the balance of payments, the gov¬
of 45,000 shares of common stock
rency with the aid of high interest ernment would maintain Sterling
to the public at $16 per share,
rates. The funds attracted bv such at its
present level. It is now gen¬
there
are
presently outstanding
means are liable to be withdrawn
erally admitted that a reduction
at a most awkward moment. Even of the value of sterling at the be¬ 152,014 shares.
if in the meantime they prevent
ginning of World War II was a
a loss of gold,
the counterpart of grave mistake. That mistake will
Insurance
City Life Company
the gold retained is a correspond¬ not be repeated. Obviously amidst has recently completed an offer¬
ing increase in foreign sight lia¬ conditions created by a shooting ing of 15,805 shares of additional
stock
bilities, so that the reserve posi¬ war a depreciation of sterling common
$10
par
value,
tion is not strengthened. :
would not increase the volume of through rights to its stockholders
exports, because the exportable on a one-for-one basis at $16 a
Stronger British Gold Reserves
surplus would decline. A depre¬ share. The additional capital will
From the point of view of spec¬ ciation of sterling would only re- place the company in a position
ulation, it was a mistake to relax duce the foreign exchange pro¬ to expand its operations which
exchange control by authorizing ceeds of the exports. It is true, it presently inc 1 ude six eastern
London
banks
to
deal
directly would discourage imports, but the states.

the

day

for

funds which

on

withdrawn.

they were informed that the
Economic Secretary to the Treas¬
ury, Sir Edward Boyle, who was
to answer the debate, would cate¬
gorically reject their demand for
an
early flexibility as a perlude
to convertibility, the debate was
cancelled.Possibly
those
con-^
cerned may have also felt that, in
ever,

view of

the

Suez

be inopportune

vertibility

or

crisis, it would

to press for con¬

flexibility.

Psychological
The
due

pressure

directly

Factor

sterling is not

on

the

to

material

ef¬

are

It

now

is

liable to be

?

But

the

if

even

foreign non-banking buyers same end could be achieved by
of foreign exchanges. import restrictions. There is every
ance of payments or the domestic This measure, and other measures reason for assuming that the gov¬
economic situation is quite negli¬ of a similar character adopted in ernment
will do
everything to
gible, and is not likely to become recent years, facilitates speculat- avoid a depreciation.
ures

have

so

far affected the bal¬

or

y.

(Special to The Financial Chronicle)

GREELEY,
Ellis is

CONNECTICUT

ican

Colo.

—

;

i

Lester W.

Company,

v-''

Eighth Avenue.

Three With King Merritt

ment

to

firearms

from hardware

to

.

.

.

from

aircraft

are

few

a

markets for—

stocks
•*..

insurance,

•

we

make

markets

~

Aetna Insurance Co.
Aetna

to

helicopters.

Some specific examples ?
Here

engines

in

or

<

find
„

(Special to The Financial Chronicle)

LOS

King

Merritt

Calif.—David

ANGELES,

L.Anderson has become

King

Merritt

&

connected
Company,

Inc., 1151 South Broadway.

With Mutual Fund Assoc.
-

(Special to Tire Financial Chronicle)

■

FRESNO, Calif.— Dr. Reuben
Greenspoon has become affiliated
with Mutual Fund Associates In-

corporated, 444 Blackstone.

Williams Staats Adds
(Special to The Financial Chronicle)

be completed

within

\;AtY.;7^

Aldon

Mills Corporation,

located

in

c e

i

v e

d

Stock

Exchanges.

He

was

previ¬

ously with E. F. Hutton & Co.

Spinning

whose plant is

Talcottville,

have

re-

profit-sharing

Three With Carroll & Co.
(Special to The Financial Chronicle)

Colo.

DENVER,

R.

B.

Dewey

—

Clarence

Murphy,

Scholz and

Roeco Tate have become affiliated
with

Carroll &

Building.

Co., Denver Club
;

•

&

Co., Inc., 24 Julia Street.

Hartford Fire Insurance Co.

Life Insurance Co.

Three With Columbia

Hartford National Bank & Trust Co.

Citizens Utilities Co.

(Special to The Financial Chronicle)

Landers, Frary & Clark

Connecticut General Life

Southern New England Telephone Co.

Insurance Co.

Ernhert Mfg. Co.

Interested?

with

the

Spring Street.

(Special to Tut. Financial Chronicle)

with

benefits
JACKSONVILLE, Fla.—George totaling $61,000 as a result of the
S.
Bell, Melville Lecompte and operations for its most recent fis¬
Joseph H. Robinson have become cal year. The prior year, the first
associated

Wil¬

With King Merritt i
-

years' time.

Employees. of

opportunities for investors in everything from office equip¬

—

joined

new

scheduled to

two

1515

The woods and lakes, the camps and resorts, the countless

has

LOS ANGELES, Calif. — John
buildings at a total cost
of
about $500,000 to expand its M. Bush has been added to the
steel
strapping division and an staff of William R. Staats & Co.,
addition to its builders hardware 640 South Spring Street, members
division plant. The additions are of the New York and Los Angeles

two

affiliated with Amer¬

now

Securities

623 South

y'pt1-'' v-v

?■

Murphy

J.

staff of E. F. Hutton & Company,

presently
adding to its manufacturing space
in New Britain by constructing

With American Sees. Co.
Call it all

liam

The Stanley Works is

sellers

ANGELES, Calif.

LOS

a

Torrington Corp.

MIAMI, Fla.
Smith

Merrill Lynch,

-

connected with

Securities

Florida,

3839

Company,
Biscayne

&

Primary Markets in *

Beane

(Special to The Financial Chronicle)

DENVER, Colo.—Alan J. Artach
is

now

with

Colorado Investment

Co., Inc., 509 Seventeenth Street.

:

CHAS. W. SCRANTON & CO.
Members New York Stock

Exchange

CONNECTICUT

r-

New Haven

SECURITIES

With Colorado In v. Co.

NEW YORK 5, N. Y.

Offices in 107 Cities

of

now

Boulevard.

Pierce, Fenner

70 PINE STREET




are

Columbia
Inc.

Trading Department

Benjamin Rut-

stein, Robert B. Sills and William
B.

Just call—

—

New York

Hartford

—

—

REctor 2-9377

JAckson

7-2669

Teletype NH 194

-

Volume, 184* Number 5560

V The Commercial and Financial Chronicle

v*

(691)
charge of the Lincoln
title

News About Banks

An

Assistant

came

NEW BRANCHES

1945

to

Assistant

an

office with

Bank-

the

Ex-

act

with

ETC.

National in 1951, remaining in the post when the merger

and

CAPITALIZATIONS

.

A.
Blind
formerly
Manager, is being given

the

Herbert D. Bacher has been
apAssistant Vice-President

pointed

of the Commercial State
Bank and
Trust Company of New
York it
was
announced Aug. 9

by

Leichtman, President.
formerly

served

Jacob

Mr. Bacher

Assistant Sec-

as

retary. Prior to joining Commercial State Bank in
1953, Mr. Bacher
for 11 years was
associated with
the Chemical Bank and
Trust Co.
and the National
Safety Bank &
1 rust Co. v
^

^

has

been

Assistant

Vice-Presi-

associated

Western

Group at Head
>

Samuel W.
an

i\/r-

Company of New York

i\/r^«i.

Mr. Meek
member of Trust Administra-

tion and Messrs. Frantz and
Wood
are
associated with the Pension

Farmers^1 V1S1°n
„

y
^

x

k

"
a

•

Lexington Avenue.
director

a

Co.

been

elected

Vice-President
Savings Bank

Trustee

School in

of

City
York, it
on
Aug. 13 by
President. H Mr.

of

Diehl,

Gentzler

will

duties

Nov.

post

Charles

his:

assume

new

1, leaving his CoOct.

on

31.

has

been

member

a

currently Chairman of
Examining Committee,
in
1926, he entered Columbia University as a graduate student in

mathematics and at the

same

appointed instructor in

He

has

time

math¬

University Extension.

been

Columbia

associated

in

various

with

capacities

throughout the past 30 years. He
was appointed Bursar in
1935, be¬
came Business
Manager in 1949
and Assistant Provost and Di¬
rector for Students' Interests a
year later. During World War II,
^

he

was

a

currently

War

on

is

Acting

Committee

aided Research.
Mr.

Gentzler

^

^

on

announced

on
Aug.
Catharine, the

M.

Mr.

new

have

until

he

started

bank also has

♦

Office

by

bank's

has

spent

independent

an

in

1936,

of

the

he

is

also the
Visi-Shelf filing'

system and is actively connected
with Visi-Shelf

File, Inc. >

^

^

The Fort Neck National Bank of

Seaford, Long Island New York
...»
,.■»
increased
its
capital,, effective
.

.

..

-

July 27, from $994,500 to $1,392,300. The capital was
enlarge! as
tbe result of the sale of

new

stock

its

?

$5

par

of

104,500 shares

value

of

stock

at

common

.,PeF s^arf, ^as been fully sub-

.

scribed and the books closed. Lee

Higginson
vestment

Corp.

headed
which

group

the

in¬

acted

as

underwriters"
k

*

a„„

q

A„rt

Oi Aug. 9 the Aug.
Weekly Bulletin of the U. S.
" trollpr^ of thiYhrrpnrv r*'

thai the

nln*%

ph^l^ ^ phe^l^Ne^ Yo^k
stock'

com.„on

0f

$50,000,

with

was

merged witH and into the Security Trust Company of Rochester,
N.

Y. under the charter and title
of the latter bank, effective June

4, in accordance with the statutes
of the United

States and the laws
of the State of New York.

at

an

in

1889, the
uptown branch

*

#

a

member :of the Ad-

Board of the 510 Fifth Ave.
of

Bank

of

Rutherford, N. J.

with

Garfield, N.

Bank

of

the

First
J.

(both
in
Bergen
County),
is
planned, the union of the two to
oe brought about
through a new
bank

be known as the

to

Community Bank

J
J?**

National

of Rutherford,

learned througn Rutner-

in

Managership

u

*

wnicu

accPljyit ot tne promotions

.

says in Parl*

*

Manufacturers

Mr.

Director

Smith

Manager of the

was

Bank

office

*

i

*

of

Bank

common

the

As of June 28 the First National

Central

Company of Pekin,
capital of $500,000,
$150,COO. Of the
increase $300,000 resulted from a

111, reported
increased

Central
the

Na-

stock

dividend

with

while

the

had

and

National

effective

Bank

date

of

of

the

which

the

in 129,375 shares of

?

?* ?yefj0rs*
? trSi
-n

ing
26

stock,

aiso State,
-'Rutherford National is Bergen

~

,

largest

.

bank,

with

re-

sources of $49,452,205 and deposits
of $45,879,571. First National of
Garfield

has

.resources
of
$20,133,060 and deposits of $18,919,280.
Figures are as of June 30
The

Rutherford

bank,

established

seven offices.

Lyndhurst and

the

in

There

are

each in

one

that

Mr.

comes' the * 21st

member

Harris board. Mr.
in

Honolulu,

career

in

1956 to

Fargo

Bank

his

with

in

posed

San

mercial

He

Bank

of

the

Ferndale

aviation

in

of

President

of

the

Rutherford,t Carlstaat, East Ruth-

sistant

Boeing Airplane Co. and since has

ington..

I

"

?
^

'The Garfield

1934) has
Garfield.
teller

its

do^s

of

the

William

L.

ford

Leeifw,

and

the

Staehle

Jr.1

Garfield

?

to

and

institutions.

Z ™

dividend

period Sept. 1 to Sept

solidated bank

Continued,

on

chantville National. Bank & Trust
Co. of MerchantviUe, N. J.

by the

sale of that amount of new
stock,

MEMBERS

Midwest

49 Wall

,

Stock

American Stock Exchange

Exchange

Street, New York 5, N. Y.

Telephone:

Teletype:

HAnover 2-7900

NY 1-911

the

capital thereby having been
increased from $150,000 to
$200,000 as of Aug. 3.
Girard
Bank
new

Corn

Trust

of

Exchange

Philadelphia opened its
Philadelphia office on

RAILROAD
PUBLIC UTILITY

South

Aug. 6.

The

office, the 17th
Exchange sysPassyunk Ave-

new

INDUSTRIAL

in the Girard Corn
^

tem, is located
nUe west of

on

23rd Street. The bank,
new Penn Fruit

BOND and STOCK BROKERS

together with the
Co. supermarket

under

now

con-

"Edgar N. Caruso, Jr., an As- struction, is part of the expanding
sistant Cashier, is being promoted Oregon Avenue
shopping district,
to Assistant Vice-President .in A parking
.

of

the

Vailsburg

office,

than

more

lot, providing space for
100 cars, is available

for, customers.

1938.

Exchange Bank has remodeled the

the

It formerly was

Lincoln

a

National

branch ©f

Bank,

ah-

sorbed last year by National State,

Trust

"Wilbur

E.

Dunkel

is

taking

including safe deposit and night
depository. The bank has assigned
staff

a

South
H.

Are Your Records

Incomplete?

of

eight

persons

Philadelphia office.

Brown

in

-

Girard Trust Corn

S^S'^n^g^ifit^

is

Assistant

the

Stuart

STOCK 6- BOND

BROKERAGE SERVICE

Treasurer

charge and Alex Brunoff As¬

sistant

Manager.

The head teller

is S. Eugene De Mari.

"FOR SALE"

to

The office

is open

for Banks, Brokers and Dealers

daily from 9 a.m. until 3
p.m., Monday through Thursday,
and on Friday until 6 p.m.
,

A Number of Beautiful

Annual

John
to

Bound Sets of "CHRONICLES"
of

Various Dates From 10 to 50
Years

Available in New York
City—Write

V
-

Smith

2-9570

c/o




Edwin

L.

been

is

Vice-President,

Aug. 9 issue,
announced

Chronicle, 25 Park PI.

N. Y. 7

to

Pittsburgh

Beck

intention

resign, from the management of

Counselor

Phone REctor

whose

the Mellon National Bank & Trust
Co. of Pittsburgh, of which he had
our

or

S.

on

burgh

'"Fist

from \ynic

was

page

Gazette"

i we

Financial

University

Sept. 1.

of

The Pitts¬
of

Members

New

Aug.

6,

quote further said:

Sm ith will advise the busi-

York

American

noted in

586, will, it

become

the

Hardy & Co.
Member*

30 Broad St.
Telephone Dlgby 4-7800
MAIN ST. &

Stock

Exchange'

Stock

Exchange

New York 4
Teletype NY 1-733
MEETINGHOUSE LANE

SOUTHAMPTON, L. I.f N. Y.

con¬

and will be added

Vilas & Hickey
York Stock Exchange

nor¬

1956, which

-.■i

New

and

of Fern-

the remaining portion

quarterly

the

covers

Vice-Presi-

1 0I,^e

$53,000 has been
capital of the Mer-

the

a

National Bank

Presi¬

are

A?sh,. whhe
Mr* Staehle 18 lts Areasurer* /
*
*
*
An addition of
made

became

National
Mich,

Wail-

Mr. De Leeuw is President of the
n

he

Birmingham,

Rutherford

dents, respectively, of the Rutner-

Z

1933

& Trust Co. of De-

30, 1956, will be paid by the

intimately

associated with
the progress of air transportation.
In

*

quarters in
have
drive-in

as

branch
De

the

the

main

Both

service,

ington
bank.

in'East P;ter.

oifice

an

besides

son

bank, founded in

been

to

<

mally paid Sept. 30,

As-

erford, North Arlington and Wail-

*

of

shareholders

Birmingham

this reaSon,

corn-

as

.

This dividend is

dale, Mich, with the Detroit Bank

Francisco,

1929

the

is expected to become effective at
the close of business Aug. 31. For

Wells

entered

of

par

August 31, 1953. The prowith the Detroit

the

where he became Assistant to the

Vice-President.

$10

merger

troit,

business

the

0f

Wabeek Bank

be-

of

the

on

able Sept. 30, 1956, which is allocable to the period from July
1,

Patterson, born

began

1914

order

an-

Patterson

meet¬

dividend

a

that part of the quarterly dividend
vr
of 40 cents a share normally pay.~

at a special meeting of
bank's stockholders on Aug. 8.

nounced

share

a

record Aug. 10,

Chicago,

President Kenneth V. Zwiener

cents

a

that the Board of

declared

common capital stock of the
bank, payable Aug. 31, to or upon

r

„

amount;
stock,

new

value

»

Newark

iNe^s

Aug. 7

on

Directors

meet_ and Director of United Air Lines,
a<L °? Inc
was
elected a Director of
p, Harris Trust and Savings Bank of

*

j

iQ^;?SP0S^Ke
««£«.. eT»®i V15efrs ,in

that

the

Detroit, Mich, reported at

at

merger

common

of
of

Joseph M. Dodge, Chairman of
the Board of The Detroit Bank of

under

title

sale

yielded $50,000.

capital stock of $2,587,500,

a

a

from

were

consummated

charter

organ-

*

Bank & Trust

v

$2,250,000,

stock of

other

*

Richmond

of

was

various
*

approved and made effective at
the close of business
July 31. The
merger

of

izations.

Mellon

*

$300,000 into the

tional

Development, the Museum

of

National Bank & Trust.

.

fYf
J£g

following year. Mr. Patterson is a
Trustee of the Committee for EcoScience
and
Industry
and
Northwestern University and is a

of

i* ^ne
Ev®" Pa^ $20 ^each; surplus of $4,650,000
of Aug. 9 from a s.aft and undivided profits of not less
correspondent which indicated than $626,930.
a plan for the merger was ap\
*
*
*
*
by -the respecWilliam A. Patterson, President

of

three branch offices of the Na-

acquisitions

dent of United Air Lines, and was
elected President of United the

nomic

nmg New®

He has been with the office since

,

appointment of Frank W.
as

National

the

•

Promotions

charge

-,

of

merger

National

*

*

Under date

r

Rutherford

Peter

#

TTvlrw

13

proposed

two in

Bank,

major

Farmers

of

-toe

1895, has

to the amount of $397,800.

Trustees. He also will
liaison officer with
banking

as

.

County's

*.

post,

oifices

at 231 West 125th Street.

visory

Lane

14

it

„

In

will

Incorporated

Begrisch

Dollar

York,

+

Park Avenue, the midtown
office of the Empire City
Savings

The

the

New

J4°nal State Bank of Newark, N. J.
Research
and^{"Jvf> ^en ./n^°\?rCe?>
Chairman of
eS^e!)
t!t
Governmentt^an' .acrc^F
?, ? At ®
^a
his

Two

Bank.

of

of

member of the Columbia

Committee
the

Lane, President of
Corp., has been

Bank

President.

of

1938 and is

in

Mann

*

trustee

a

Manager of tne AirHe was employed in

the

^ ^ by^the Orange First National
Plans for the merger of the MeBank, since merged with National chanics & Merchants Bank of
State.
,
Richmond, Va. with common stock

been

Lane
a

Robert

Mr.

the

ematics

Horace

*

J.

J.

Savings

New

the Bank s Roard of Trustees sinne
tne Rank's Board of
irustees since

was

has

Riverdale, etc.

.

Gentzler

the

*

was

He

of

°fiice.

370

at

Phillips/ Petroleum
1944;
Vice-Chairman

stockholders

of the Empire

announced

on

invest-

of

since

and

and

x

Uuwe.-

Charles

estate

The Meadow Brook National
of Freeport,
N.
*»• announces that its recent
offering to
Executive
------

1

-W^Emerson Coiuiiuua AssistGentzler,
Provost 01

ant

has

real

-inventor

Meek, Jr., has been

William E. Wood, Assistant Secretaries of City Bank Farmers Trust

lumbia

the

business with offices

*

Assistant Trust Officer and Kenneth E. Frantz and

was

in

title

an-

on

business

"

sity

was

of I;- the over 35 years in the business
Office, will equipment field. Sales
manager
Caribbean of
Security Steel Equipment Corp.

Aires

*

,,r

York

with the

Office.

appointed

New

J. Manager

banks Buenos

as a

is

ment

ap-

dent of The First National
City
Bank of New York. Mr;
Garvin,
who
has
been

of

Aug. 14 by Horace C.
Flanigan, President. Mr. Begrisch

chas.

^

Garvin
an

District

nounced

elected

Lester

pointed

be

Company

of

property."

Wii^iam
Acting

University and

Committee

of

financing

effected."

was

the

and other financial institutions in
matters
involving investments and

Lincoln

OFFICERS,

REVISED

of

Finance

Board

1950, he beCashier

staff

ness

Vice-President,

National

aminer from

CONSOLIDATIONS
NEW

of

Assistant

15

page

31

16

The Commercial and

(692)

with expectations
recent retreat

The Suez situation
bit

oils at times,
cal

weighed

a

selected; international

on

while the politi¬
captured the

convention

spotlight

inves¬

among

even

future

course.

Twice

so

better than half

billion dol¬

a

nl ilr

ii

-

,

able

were

to

"certain
undivided profits and
other funds were accrued prior to
Savings and Loan Insurance Cor- 1952" . . . "payments will result
poration which enables pension in no income tax liability to the
funds, under certain conditions, to Association." An interesting new
Ruleg

development is the Company's recent entrance into the insurance
and loan association and have the agency
business
(approved by

tions for individual issues in

unlimited

jnvest

with

of

amounts

individual savings

an

stockholders on August 13th this
Interest from home loans is at year), which appears to be a very
natural adjunct to its nonpar,

entire sum fully insured.

rajk

present the Association's principal
source
of
income
and, under-

.,v'

activities.

^<iu<b:les standably, "to meet the needs of
conclusions The increasing business, three new

previous record peak lars of d e f e n s e products. ground to a
reached in April has turned
Apart from occasional correc¬ fact that the

shutdown

until the first hall was

come

Marketwise, there seems to be

quarters. This of course

outdated

few> if any, exactly like it. But

should be obvious (if the reader surely it deserves to sell much
will bear with a few more statis- higher than seven times 1955
because the Associations earnings, with larger 1956 earnsavings Accounts at the end of

no

o

•

holding

well,

512-520

the

area

for

than four weeks and the

rather

timent is

cleared up the
in

sen¬

general that

uncertainties

the

once

in

are

market will be

easy position to forge to
highs. The momentary
setbacks were mostly on deCreased volume with little fol¬
an

new

low-through to them.
The

flaw in the tech¬

one

Motors, too, were able to

more

perk

ing. In fact, they have yet to
rebound from the reaction of

strike

steel

the

the

in

even

mildly
the

for

started.

the shut¬ $9.55 this

as

was

able to

vpar

sof h™elaGWh¥ance ?e,ld f?°uld, incre0ase
no cZf S£Z
£--pnncip;ai functions ot tne ow present low times/earnings ratio.
The reader need only examine the

to

year.

Few if any corporated in 1924) are "to pro- reC0rd below and we feel sure he
are consid- vide a savings investment medium wjr come to the same conclusion.
through

ered

issuance

of

investment

in

.

Paper Stocks Highly
Regarded
The

paper

seldom at
issue

a

s e c

about 6.1%. The loan delinquency

Two With Allen Inv.

recor(j has been unusually small,

;

rather calm market life.

-

(special to the financial chronicle)

5 Jo or better.

average yield of
Even Republic

Steel, which with only four loans having gone
BOULDER, Colo.—Raymund M.
already has covered its indi- through foreclosure in the last Haddock and Stanley C. Miller
cated
1956
dividend,
has
'
n°ne ln
P
are now with Allen Investment

t i o n was also been available at about

loss for

a

favored

5%

In February, 1956, the

Company' 1334 Pearl street*

Company

general market acquired the Bakersfield Savings
quality issues of and Loan Association, Bakersfield,
A oi
California, with assets of $24.6
4,v

against

two.

or

.

.

than

marketwise

better

a

Joins Daniel Weston
(special to the financial chronicle)

.

,

~

t-,

.

LOS

W1th Daniel D. Weston & Co., Inc.,

of

20%

in industrial

prices
in the first half of

1954, and 15% last year, this
year's improvement was held
to
a
meager 4%. Whatever
else it proves, it certainly is
convincing evidence that the
final and explosive stage of
sheer
speculation, normally
the windup of bull markets in
earlier periods, isn't making
its appearance so far in this
bull market. And when there
aren't

a

ulative
rected

lent

wide

variety of

excesses

the

that much

be

to

chances

downturn

spec¬

of

are

cor¬

vio¬

a

lessened

more.

Gulf—Split Still Expected
Gulf
more

Oil

was

one

of

the

erratic of the individual

situations, the
mixed up

reasons

in the

a

bit

firms,
once

like

the

steels,

were

levels. This is

considered the leaders in

what is almost

the boom-bust field of violent

cyclical fluctuations.
*

In

*

recent

*

ward

ing,

have

also

a

evident

completely

from the Suez

the

it

contribute

better-known

producer, is only

on

paper

the brink

apart

Earnings of the

copper pro¬

in

this
near

iow

able at

Tt i«? «;nmpthincf nf a npf
it is something ot a pet

•

■

those

in

who,

multi-million share

tions,

are

without

partial




ducers

were

also

fully in line

FlNA^"1, Chboi"cle^

But the practical effect of merly

Great Western

Gross

of

bit

a

Ferro

.

,

-

\

[The

views

time

not

coincide

expressed

necessarily
with

"ChronicleThey
as

those of

those
are

in

this

at any

of

the

presented
^

the author only.]

41.0

2,038,917

48.1

69,548

35.2

Net earns, ofter inc. taxes and

.

before appropriation to general

'

At

/earVnd-"
!

#

Total assets

128,931,306

91,203,799

41.4

Principal balance of loans

117,157,868

83,302,644

40.6

Number
.

of

■

-

Outstanding investment ctfs

43.8

6,187,105

8,897.813

12^

■;

27.8

15,318

19,571 %
-

,

12%

-

all home

Average interest rate on

loans

22.6
35.4

29,190
74,694,178

35,796
100,148,008

savers__^

6,1

6,1

—

GrtiL^lL?To°^^nd

million shares.

41^

$5,916,717

Average length of all home loans

only

<csqir717

$8,369,908
3,018,855

income taxes

stock
is

rer Cent

Increase

94,000

earnings

Earnings before income taxes

Number cf home loans outstanding

total

s

660

1954

1955

,•

•

issues

shy of two-thirds of a

Inc.,

He was for-

with L. A. Huey Co.

(years)

around.

Company,

<

and 22 Escrow Companies—

nmnnrr

to

&

Savings & Loan Assn.

capitaliza-

much;

too

.

dickering. That

•; taxes.

avaii-

era

vvitn "osworin» OUUivan

Sullivan

among

this

Sullivan

Rrkcwmdli

\x/itL

and dividends at present are

income and California franchise Seventeenth Street.

yield of around 5%.

a

,with Dean

now

are

ciation is subject to both Federal

narrow

also

and

Phillips

ne^NJrE^ n°0w wUhBosworth",

of less than 10 points
year,
currently? selling
the

Ram \y.

—

30c quarterly. Taxwise, the Asso-

results.

a

J-c

WilCampbell, Jr. and Dwight

ANGELES, Calif.

$1.20 per share annually, payable

range

articledo

Copper Issues Acting Well

held

LOS

share,

per

pany,

ij.

x

future

to

has

Ferro

j?

.

.

I wo

(Special to The Financial Chronicle)

p

"growth" and For the year—

of

aura

j

t

Dean Witter Adds
:

which include
0perati0ns of the Bakersfield com$1.36

.

slight reduction in earnings
this year oyer last year's resuits. In part the hard going

more

initially but then abor¬ Mead and Minnesota & On¬
of a stock split
tario, have been available re¬
circulated, and when no split cently at a conservative 10was
voted
at
a
director's times-earnings figure.
was

.

ajj

Wf*

n

First quarter 1956 earnings were witter & Co., 632 South Spring SL

fact,

as

.

a

linked

the paper
closely with
the rising trend of the coun¬
try's population. International
Paper, for instance, is gen¬
erally regarded as of blue
chip quality yet has an un¬
interrupted dividend record
stretching back only a scant
10 years and St. Regis Paper,

makers far

process.

bit of chagrin

good

as
.

Co"

myre &

of the parent company.

supermarket prepackag¬ pany which, in time, will give

rumors

a

,

a

the devel¬ of appliance lines recently is
opment of new products that responsible. More substantial,
made serious inroads into the however, are the heavy comcloth bag and wooden case mitments
for improvement
fields, plus the big trend to¬ and expansion by the com-

Gulf

meeting

i

reflection of

years

The of reaching a 10-year chain.
Suez Canal fracas weighed on A
couple of the paper makers,
tive

t

a

Street. He was

South Spring

541

formerly with Maraehe, Dome-

a

increases

ANGELES, Calif. — David

E. Brown has become associated

,

.

i ur

•

r\

Riegel Paper, for vield from
face of a definite upturn in
instance, was able to push to well below
..roll
million. Bakersfield is located 115
carloadings as the steel mills a new
high on one of the
worked back toward capacity
Ferro's Bright Future
drearier market performances
dch'aarTcultSL^anif off nroducF1—1 agricultural ana oil proauc
operations.
.
this
week.
International
Ferro Corp., which is large- ing area, has 139,000 persons in its
\ Caution Still Prevalent
Paper was also in occasional ly dependent on the steel and ^dt^.a^,afia°dhj°
There is still plenty of cau¬ demand, although there was a other metal lines for its prin- largest in the San Joaquin Valley.
bit of profit-taking to contend
tion prevalent since so many
cipal product, porcelain en- This acquisition "should prove to
with once the company con¬ amel
frit, is one company that be a constructive and, significant
favorable developments have
firmed that earnings for the ic a hit HenresseH PVPn with addition," says the Company, and
is
bit depressed even wim
been discounted in full by the
should
further
increase
the alfirst year had soared. Paper the market
market's long runup. Against
generally at hign ready substantial earning power
,

banking"
insur-

business and entering the

last year to Savings and r^an Association (in-

models of the dividends

new

Chrysler

™ *

surely, too,

is in the

^e fact that it

anything approaching certificates, and, home financing
T
£
, T
»
jeopardy and final results for by lending money on the security
Joins Hannarord 1 aiaot
the others, which again is a the
year should be fully com- of first mortgages or trust deeds
(special to the financial chronicle)
normal reaction considering parable with those of 1955. ?or Purchasing constructing and
STOCKTON, Calif.—Ernest E.
how sharply the
of the Desx
let
some
issue was Yet some oi ine best srade ^Proving re^denbal real prop- Weyand has joined the staff of
§;aue erty." Most of these loans are on Hannaford & Talbot 2221 North
marked down from last year's
issues,
including Bethlehem singie family homes selling in the orange Street
peak. Ford, while favored by Steel and National Steel, have low five-figure brackets, bearing
mutual fund portfolios, had a

do

nical

picture is the persistent
refusal of the rails to get go¬

up

downs

loct

9R

frnm

cultc

1*1%

1954 to 35,796, totaling $100,458,273, or 6,606
1955 increased over

And

expected.

ings

'

performed

yardstick by which to-judge

no

_<hdn't

great disposition to the group, which is a normal completed has kept projecsell and pull the market down condition, the plane
shares tions of full year's income to
the
the modest side even in tne
were able to give a good ac¬ thp modest side even in
importantly.
V *
* y% *
if;':-;
count of themselves general lyk face of some good half-year
statements. Bethlehem, for inTechnically, the list has
Chrysler Leads Car Parade
stance, was able to boost re-

was

Regulations for Insur-

and

of Accounts by the Federal

ance

easily

recover

tax on only that part of its earn-

their strike

once

far the

back the industrials but there

tv>%
11 -

Also

net income.

m0re

helpful along these lines, as ings out of which it intends to pay
it becomes more well known, dividends, in this case $1.20. Howshould be the provision in the ever, in this coming year, since

Rebound
o

\

V ■!

very

money

Steel Equities
Qioolc

D

tbus

ancj

nevertheless.

—

the

ahnvp

net income

porting plusn

good
a string of eight weekly ad¬
popularity when the market
vances in a row
a rather
is buoyant, a
favoritism
good showing for a summer pointed up by the award to
rally-—but did little to decide Boeing of a fat contract for
Aircrafts continue in

from

iV:.

V

■-

■

*

#

*

all enough to snap

was

11

m

will attract greater savings, pro- special Treasury Department
duce more loans (at compen- regulations now in force is that
£atingly higher rates of course) the Association will be subject to

well «DOye ou / ;
showing for the ear-

ran

the

over

wa

ran

.uoage

Continued
-

; v.;;.

\

•

Thursday, August 16, 1956

. , *

The SeClUlty 1 Like

split is anticipated rather lier period. The stocks turned
widely and the company, at a bit irregular when copper
least so far, has done nothing
Liifc lniw rwLlr
retreated irom its loity peaK
concrete to dispel such hopes.
price, but the reports, bore out
The timing of it is the big
the more considered view that
wmnaniM wnnlH
hp Vpquestion left.
me
cu
[

tors and left the market list¬

less. It

mi

and that of Phelps

last year

kept the stock the stock will eventually be

market restrained this week.

%

able to post a profit nearly
double that of the first half of

STREETE

r*nr]ao

Uncertainties

2

ot

was

the red metal. Anaconda

THEMARKET... AND YOU
By WALLACE

despite the
the price

in

Financial Chronicle

—

>

N%era^f be£°re aPProPriation to Seneral reserves.... $2,920,207
o? shVr7s"outstMdtagZIIIIIIIIII~IIII"--III"

Nu

Number of stockholders
■—

,

*Great

■.

Western

„

Corp.

,

>

for the

subsidiaries for the entire year

-

.

•

period

,

_■oa

from July

1955, combined.

30,

to Dec. 31,

19»a
t

•

600,000
2,845
,

...

19oo and its

Volume 184

Number 5560

.

.

.

The Commercial and Financial
Chronicle

(693)

17

't '

f.

;
■

'

:!

'

■

.

■

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' ''

..

'V..;

V

■/''

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The only really

•'

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••'■

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■■

:

:

,

-

new car

IS

The
',V.,

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Flight-Sweep. And

"V"

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only Chrysler Corporation
-V.:

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T;,; '• •:•••' :Vv£v *"' i'vv'W

J/t;*' i.^V *iy.v|j|

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is styling

^

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leadership.

,

1

; ;•

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Dc Soto

Chrysler and Imperial.
'

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ca rs

A

V

Vi V*

v

-V:

-v

•

.

••

The

Commercial and Financial

Chronicle

. .

Thursday, August 16, 1956

.

(694)

18

r*

independence and

their

achieved

Continued from page, 7

developing countries need
to
strengthen
their

newly

assistance

Bank and Insurance Stocks
WALLACE:

B.

By ARTHUR

Week—Bank Stocks

This

1

creased over 50% in real

.

The Federal Reserve is; not unmindful of the threat of turtner
inflation in the economy, and one
of its stronger weapons against tne
trend is the use ol the rediscount
rate. This rate is the one charged
banks that borrow from the red-

subject of firmer interest
rates is again oppearing on the
financial pages of the newspapers;
and firmer interest rates generate
better bank earnings.
Basically,
of course, the force behind the
firmer rates is the high degree of

;

The

maintain

their

programs

of

Such programs are vital and

in¬
of
if

our

economic aid.

dispensable

if

communism

is

the
be

to

challenge
met,

and

of the we are to preserve freedom in
many areas of the world.
*
These governmental programs

By contrast, the trade

terms.

to

Hence

liberty.

And the National interest

,

'

and

economies

American Business Abroed

gut the lowest fifth of income re- communist countries with these
cjpjents have experienced an even areas amounted to about one billarger increase than the average, lion dollars.
.
Their incomes rose 125%.
>
The low level of communist

are complementary to

the poten-

tially far larger role of normal

trade with the rest of the world commercial activity. American intjons> the one that relies most is mainly due to a deliberate pol- dustry, with its many centers of
heavily on individual initiative icy of self-sufficiency. The lead- initiative and ingenuity, with its
activity in the country s economy, eral Reserve Banks, ine recus- and prjvate enterprise has come ers in the Kremlin want to build ability to combine capital, techniThe nation's over-all business is count rate was increased on live cjosest
providing abundance for a self-contained economic unit, cal know-how and managerial
good despite a few sore spots, occasions during 1955 to the pres- all
Their recent trade offers to the skill, is eminently qualified to
notably tne automotive and agn- ent 2%%, and as increasing it
There are other dimensions of newly, developing countries are play a major role in accelerating
culturalindustries. Disposable in- further will .probably,, act ..as a jnct1Vxauai freedom in the United politically inspired. Khrushcbev, economic development overseas,
continues high, the number check-rein on borrowing, a mpve gtates which have grown in im- nimself said:
"We value trade it is true, of course, that alemployed has reached
another to a 3% rate seems to be in we p01tance as this country has ma- least for economic reasons'and though much attention has been
record, and the Gross Na- cards.
The counterpart rate m tured. The American worker's most for political purposes."
given to the problem of private
investment abroad, especially in
tional Product continues at new
Canada has just been raised to freec}om 0f organization is traai- Russia Trades tor Political Ends newiy developing countries, the

-

!

all the great industrial na-

come

new

All

rectly,
it might be added, volume

ajuicuu_j.hs,

new

IUI

oemana

~ <-*

w.ic

mi

c

u

United

States does not di-

for foreign

need

capital remains

.

1X1

•

a via*

""iciiceui

million farmers own the farms

contract has on bank earnings will be of4mseries of fresh wage portance, for rates to other than
j increases; and every little threat prime names are scaled
r of a
minor recession prompts our from the prime figure; and the
? Washington officials to talk about
spread between the PJ*lme
steel

new

The

-

.

....

„

.

rect its trade for political ends. It great.
Property ownership AU«„+
in America is important that other countries
There are a variety of reasons
:
"

doubtedly thp nrimft-name rate 1.1will bring about an to
^rDQCP in

of bank

~4-—„

n..i.

1

tional in our system, and responrate is sible tra(je unions have an acceptit un- ed place in our national life.

.

_

.

that figure.
of this, directly or indiBut if a 3% rediscount
affects'interest rates, and ordered by the Reserve

levels.

wage

ax.v»

cf the discussions at your meet-

.ternational trade.

^ey work. More than three
Our approach carries substan- ing today has been concerned with
upward mj.uion small business enterprises tial advantages in dealing with this problem. The reasons are
keiong to individual owners. No other nations. For under our sys- partly political conditions overrat€; small clique owns America. The tern, companies and industries are seas; partly inadequate knowledge
a
return to the no-downpayment
and the average for all borrowers responsibilities and the profits i are constantly vying with one another flection of the fact that the major
to create new products, nmir procnew nmr*- 0f opportunities; and partly a re+1^
hofwPPn
3 «%l %
_i
J
+„
+
- r .1
-l
.
i stimulation for home building—as is the difference between 3 A% widely shared.
esses
and new services.
Another interests of the American business
I though the present 2% require- and
4.-15%, or .40 percen.age
Our Independence and Free
advantage inherent in our system community have traditionally been
ment on veterans: could be conpoints.- In allDf 495o the figure
Competition ; - •:. - ■;
is that it qffers relative stability at home.•
s
"
sidered as any sort of deterrant! ^ comparable , to
the;, 4 15% was
There are many essential ingre¬ of markets. ^ Demand * cannot be
Encouraging Capital Outflow
These housing officials do not 3Vz% for the 12 leading New York
dients in our environment.
But turned on and off for political
look with kindly eyes on the Fedbanks,
The Government has
taken
The
„
„
l eral
Reserve restrictions, and if
WUa remaining months of 1955 one aj30Ve all is relevant to our purposes. This is particularly im! they have their way much in will contribute substantially to discussion tonight.
That is the portant for the newly developing variety of steps to encourage a
j funds will be taken out of the loan bank earnings.
, :
tradition of independence and countries export products to earn ; The commercial,land-tax treaty
which depend largelytlarger flow of capital,, abroad.
>
^
free competition that has existed
on a few
j market via the no-down-payment | ^
. , n
n
i.
in.Amerwh.^lt-is a tradition that the foreign exchange to finance programs have long been an ini program, for between the Veterans " uefald 15# Ky&H yWltl|
Go*!IriC^«oe* M¥ck u>. our tuskory. lc is -their external requirements.
tegral part, of the effort of our
Administration ancjitne,.Federal?
^
*
j Housing about half of the nation's ■
(Special to thk financial chronicle)
* «he very foundation i upon which date consists mainly offensive to Government to standardsonofa fair
.U
The Soviet trade of offers to ciprocal basis develop
rehome building is absorbed.
tyittmvvr
Pnln
GeraldB
DENVER,
GOiO.
Lieraiu
o. our system has been built.r
.,TTnw
tradition
On wage increases, that in" the
iated"with^:'How has this tradition
inde" buy or selFraw materials or to treatment. Since World War II,
aluminum
industry followed
p,
Milp Hi^h
iW commercial liedLXCS, WllU modwalston^rn J
e.o., 1*7
inc.,
Mile Hi"h pendence PIIVA uiuiviuuai iwtiuiwi- deliver ajivviiiuu goods, oftenquan-; ernized provisions relating to inimic xx 6
and individual responsi- uuuvti specified types and on a 15 GUUlUlCXtldi treaties, with II1UUbility affected
our approach to tities cf capital
; steel's; and John L. Lewis is soon
foreign economic relations?
direct barter basis. This is neces- vestments have been negotiated.
to be heard from, and the industry
touched off a

t

^

...

•!

.

_

.

JI2

__

<

v.

'

»

•

;

•

xx

1—

'

1

X XT.Ex VUUnwni-

VOlJCUUti tU

^

v

■'

expectation

I

—

While

is

sarily a cumbersome and limited
rela- method of trading. Furthermore,
in a it does not give any assurance of
way which will strengthen their
large or continuous markefs. Sointegrity, sovereignty and inde- ' viet tpade practices are unpre-pendence. This is the natural re- dictable-. -They may be-a large
action of Americans to their own buyer or seller one year, and dishistory of independence and free- appear from the market the next,
dom.
Such in-and-out behavior may be
We want1 other countries to be related to their domestic difficulstrong, independent and free; and ties, to needs of satellite, counthe more they are so, the better tries, pr
to apolitical objectives
we like to do business with them
elsewhere. Moreover, the history
Under our system, international of Soviet trade suggests that the
trade and
investment are com-; renewal ofa transaction may well
merciai operations carried on by be attended by political demands

will not

yields because of

up

j the lower trend in bond prices,
\ few borrowers will be disposed to
I postpone' their issues since call

| provisions always make later re-

inflationary
pressure, i The . Reserve is said to be more concerned
over
the inflationary trend than
with deflation. What tends to give

\ emphasis to the inflationary aspect

Gerald

B.

Ryan

picture is the fact

of the business

answer

that we

is

-

-

[ funding possible if interest rates
i return to a more normal level.
;
All of this, obviously, makes for
t

the

instinctively
conduct
our
"tions with other
countries

bond issues are hav-

new

i jng to firm

he

that

think

I

talk in small figures.

widely

com-'even though the

interests,

dispersed

loan volume has not behaved Center. Mr. Rvan, who has been peting against each other as well
{ Strictly according to its: orthodox in the investment business in D«n- as against those from other counI pattern.
>
ver for many years, was formerly tries. With us, political control is

; that

Similar treaty proposals are under
negotiation or consideration with
more than half a dozen other governments. At home and abroad,
our Department of Commerce and r
our foreign missions perform a
variety of services, largely of an H
information and trade promotion
nature, for American business interested in foreign trade and investment.

first deal did not

appear to be based upon

into

high gear building up4nven-

E-vans <x

World Economic Facts of Life
What are the economic facts of
300 pfk Av®""e. New York life that face(American business
1 Clty> members of the New York in the world today?
stock

in this

George C. Bradley will become
year's first quarter, which a Vice-President of Evans & Co.,

could

have

cJim„

show

and

j

a

t

expropriation"

ital
in ;

countries with which we have ne.

gotlated agreements to that effect.
uiiuvv_u a

consideration.
tax treatment for income earned
Sustained economic progress f
foreign investment has also

Trom loreiST1 investment nas aiso

0

a

expected

been

sizable

loan

to

nnntrootirxn
contraction,

Exchange,

of

as

Aug.

23.

trade

World

vide

much of this was to pro¬

for

taxes

under

the

Mills

plan; but it did tend to firm rates
more

than" would^* otherwise

have

3n tilir
been the
case.

.

A. L. Stamm Admits 5:
Philippe

the free world
countries in 1955 was $80 billion,
between

Trade

r

.

Baumarin

E.

will

be-

or

86% of the total.

COMPARISON

r

NATIONAL

BANK

ol INDIA, LIMITED

13

N. Y.

City

Bank Stocks

Bankers

on

Request

to

the

Government

Kenya Colony and
Head

Office:

26

London, E.
West

Analysis

End

in

Uganda

Bishopsgate,

(London)

Laird, Bissell & Meeds
Members New York Stoek Exchange

Stock Exchange

NEW YORK 5, N. *.
Telephone: BArclay 7-8500
Bell Teletype—NY 1-1248-49
(L. A. Gibbs, Manager Trading Dept.)

120 BROADWAY,

;

/

Specialists in

Bank Stocks



TBWrogBffpTT^inBr s ~

The

the

of the total.

Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

Reserve

Capital

responsibility

play its full role in mak-

for

own

our

eco-

of

Areas

American

Business

nomic activity abroad, it cannot
■
Opportunity
be expected ^to do so without adeLet us take a cloger lQok at the
quate support and encouragement opportunities that exist abroad

Fund

£4,562,500
£2,851,562
__£3,104,687

exchange

business.

Trusteeships and Executorships
also

undertaken

ates

>

almost

:

tional trade.
of

this

billion

.

States alone gener-

all internaA substantial portion

20%

arrangements

rity

assistance

Certain

of these

the non-communist coun-

The United

,

The Bank conducts every description of

banking and

point

tries.

Protectorate.

Authorized Capital

Paid-Up

significant

Branch:

Aden.
land

of $7.8

bloc

figures is the great preponderance
of world trade which took place

13, St. James's Square, S. W. 1.
Burma.

American

billion, or 9%

among

C. 2.

Branches in India, Pakistan, Ceylon,

Members

inside

ANALYSIS

&

succeed, the American sys¬

can

'Trade between the Soviet bloc
v^ai^Stv bindisDensa- ^nd !he responsibilities of
£°> on Sept. 1.
free world of $4.4 bil- §£ ^seen- present world sltuatlon" : in
businessman
City, ^Broadway, New York and the less than 5%was the total. bl['American
lion> or
American business today
countries

QUARTER

we

tem

Trade

American

^me aPa^ner in A-L. Stamm &

In addition there was trade among

SECOND

If

Supporting and Encouraging

by

measured

as

expanded by about three- A B. Diss vdthdreft as an officer exports, was at an all-time ' '
quarters of a billion dollars. To
the firm July 31.
1955 $92 billion. "
be sure,

ing our efforts to encourage the
expansion of private investment.

system offers.

.

| they

:

in^nrp

1

lories for the fail and winter. But

.

nan

ofits and

irrelevant to normal commercial must come from stable trade conNormally, directly after the end with Dempsey-Tegeler & Co. and irrelevant to normal commercial must come from stable trade con- been th
subjeet of much tte
1
Ppfprc Writer
—
t—
rplationshms.
/ ditions, from expanding and di- ^-on
jn £ac£ rneasures in this
of the calendar year, loan volume Peters. Writer & Christensen, Inc. relationships,
political strings versified ^Eke^6^n_d.^°^ ]rad^ field are now before the Congress.
contracts. Then toward late
V
'
- There are no
activated by commercial and not
In cooperation with other free
mer it starts to increase as crops !
v*. C. Bradley V.-P.
attached to American business op- political considerations. JThis is
world countries we are continu¬
begin to move and industry goes
w
Af i7,rar,e jP. rA,'
erating abroad.
the kind of trade-* the American
*1——

.

invpcinr<j

transfer their

such a ThiTprobfem^"oF more"favorable

with Dempsey-Tegeler & Co. and

*

Ampripan

themselves against the inability to

of

trade, amounting to $11
imports and exports,

of

such

as

and

military

'

programs.

tvDes
types

of

investment,

roads and port facilities,
be financed on a wholly

cannot
private basis. Hence the role of
the International »Bank and the

helping
finance basic development pro j-

Export-Import
to
ects abroad.
Many types

Bank

in
.

.

of technical assist-

such as education and pubhealth, require government

ance,

lie

organization to recruit and chanAfrica.
These are the newly de- riel Skilled personnel.
Herice the
veloping areas which are among various technical assistance prowas

with Latin America, Asia and

the

prime

targets

economic drive.

of

the

Soviet

grams.

Nations

that have recently

the
the
may

be affected by what hap¬
in far corners of the globe.
A measure of our own foreign in-

easily
pens

.

terests is the tact that direct privaxe American investment abroad

billion, and the
value of American merchandise
m 1955 alone
was over $25 billion,
Today, science and technology
promise ever new attainments in
human satisfactions and welfare
for our people. At the same time,
however, the greater part of mankind is still living in areas where
industrial production and living
standards are both extremely low.
no^ exceeds $18

Volume 184

Number 5560

.

.

The Commercial and Financial Chronicle

.

(695)
Most

of

these

people

making great efforts
their

now

speed up

to

country.

the

most

and

social

far-reaching

economic

changes in history. In
setting, American business

this

abroad

faces

great

opportunities
heavy responsibilities.

The opportunities exist both in
a

strictly

terms
our

of

business
the

.-'-U-

-:-

production

increasing in

incomes

and

many areas and with

steady reduction of restrictions

hampering international trade,
new

opportunities constantly pre¬
sent
themselves
for
developing

foreign markets. With American
industry becoming more depend¬
ent

basic

upon

abroad, we
oping new

are

materials

of

supply.

As

•newly developing countries move
rapidly into the mainstream of
the

world

foreign in¬
vestment
opportunities
of
all
kinds will increase on an expand¬
ing scale.
economy,

Asia, Latin America, Middle East
I

know

from

many

elements

discussed
which

one

of

some

for

account

Debentures Offered

the
the

strength of the American system,
challenge it faces in the com-1'

munist

economic

it

way

,

offensive,

An

and

responding to

...

also

for

American

incorporated

uj

touched

Securities

business

is

faith

our

American system, we do not

pas-

u

been concentrated

which

own

the

problems

on

broader

are

have

solving

now

interests

of

our

free

^,? !?
interests of the tree
world. Thus we
are

taking

bentures

long

a

-6m% to 4.30%.

step toward solving the overrid-

Ing

question

whether

in

of

vast

continue to enjoy

this

century

areas

will

men

estimated

The

instalment

Net

debentures

SAN

at

proceeds

from
will

the

sale

be

New

Toronto
for

Act,

1953

federation

"Area

and

other

B. W.

Municipalities"

of

great

Latin
East

The
in

and

the

area

Middle

develop modern industries. Their
impact often goes far beyond the
immediate

projects

that

may

be

involved.
In purely individual
terms, too,
there will be many
challenging
occasions

for

Americans

to

ticipate in the world-wide
of constructive

ter

par¬

process

change and to fos¬

healthy economic

abroad

growth

-

complementary

to

our

own.
*

•

The opportunities for the exer¬
cise of business initiative in these

situations

I

are,

am

sure,

RESULTS OF OPERATIONS

appre¬

ciated by all. The relationship be¬
tween such actions, however, and
the

national

For the three months

For the twelve months

ended June 30

ended June 30

interest may be less

evident.

Through

t

Operating Revenues

increased

expanded

trade

investment

American business

and

Pleat

support not
only the continued growth of our
can

of

achievement, and of

a

life,

the

will

be. helping

their

ings
and

of

sense

American

•

their

channelled

along

As

I

have

while American
w

sound

all,

indicated,

Total

business is faced-

the

tative

the

of

Interest

represen¬

American

Other

system to

American

should

is

the

Net

effective

abroad

respects

with

view

a

the

makes

"of

them

the

to

of

attitudes
an

enterprise.
the

.present

true

In

"country
•is
of

in

integral part

He

is

alert

image

of interest
which

located.'- In

the

word,

the

.

...

#.•*.*•-#

•

#

f

•

,

•

of

to

the

his

with

the

enterprise

largest

sense

the American busi¬




1,486

$40,863

on

•

_•

.

i.».

$ i,46i

J 6,405

-

893

1,282

,

-

1,303

:

8,006

r:

Si7,509

1,989

:•

$

1,989

$

27

$

29

*

•

-

3,063
4,653
3,216
6,346

$32,237
$

8,626

subsidiary,

.

•

.

.

.

:

.

v

subsidiary

*-

•

j

!

.

.

21

expense

charged

37

■

11

•

114

-

'

.

.

•

.

•

2

•

•

.

•

$

65

$

301

2,048

$

2,054

$

8,927

717

$

621

$

2,576

.

8

10

81*

....

•

145*

I

$
/

152

$

8,130

$

2,406

...

645

$

$

.

Outstanding
.

.

per common

at

.

'}'

1,403

$

$

.

1,189

181

414*

32

29

490

$

2,333

$

2,106

1,564

$

6,594

$

6,024

$

5,164

<

•

$

85

456*

4

214

shares

on common

214

1,350

860
$

5,734

860

End of Period

.

share

.

.

.

.

.

,

,

.

.

.

2,651
$

0.45

2,401
$

0.56

2,651
$

2.16

2,401
$

figure

interim

25

*

59

$

Thousands)

125

-'••-■

60

$

•

.

.

to construction

.

$

127

$

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

income

$
V

1*

-

first mortgage bonds

an

'

8oo

$

.

-

1,043
v.

$

•

8,554

J

803
>

1,226

»•;'

.»

•

2,099

$

statement.

COLUMBUS
.

:

832

.

,

•

for deficit of

financial

to

He

short, he strives to develop

mutuality

.

.*••••««•••

interest

This is

interest

them

32

9,498

$

'

'-Denotes red

of

•American system.

'a

(In

personnel

raising

an

$

....

.

•

reserve

••

Earnings

responsibility.
feel

taxes

'

Common Shares

aim.

training his foreign

positions

.

businessman

other nations. He takes

in

.

.

.

Earnings

home

at

constant

.

Preferred Dividends

hallmark

industry

be his

Our

.

that

.

Total

people who have no other
basis upon which to judge it. To
carry with him the spirit of re¬
many

sponsibility

,

Deductions

Other

busi¬

the

is

$40,831

2

•

$ 9,995

•

Gross income

Income

respon¬

American

abroad

#'

•

2,287

.

.

;

Interest

nessman

production

.

sibilities.

After

.

V Reduction of

rwlOther.

corresponding

•

Rentals and interest income from
•X;v: less expenses
.
.
j

challenging opportunities
abroad, it must also be prepared

of

,;Total

Other Income

i t h

to shoulder

ii.i

,

Operating income

striv-~

Responsible

already

;

,Federal income

Representatives
As

»

Provisions for depreciation and amortization
General taxes

i,

constructive lines.

Acting

■

...

in-

that

assure

aspirations and
are

Maintenance

businessman

to

•

Other operation

progress,

purpose

•

„Fuel used in electric

By helping to impart
to the peoples of the other areas
world

*

$ 9,496

4

Operating Expenses

countries.

the

$ 9,991

•••••••••••••«

Total

own
economy, but the accelerated
development of other free world

of

(000 omitted)

Electric.

abroad,

The

statements

AND

Company's fiscal

are

examined

year

ends December 31,

by independent public

SOUTHERN OHIO

215 North Front Street

•

at

which time its

accountants.

ELECTRIC COMPANY

Columbus, Ohio

First

Opens *

conducting

South Beverly Drive.

just beginning to

are

187

a

secu¬

rities business from offices at
223

potential

America,

;

HILLS, Calif.—Rob¬

ert W. Boos is

are
required on a
by countries in Asia,

which

*

(Special to Thi: Financial Chronicle)

BEVERLY

services

large scale

;.

Bodager Opens

Robert W. Boos

tance is in

These

Co., Inc.

business from offices at

the

13

are

&

Francisco

Street.

which

purposes.

San

PITMAN, Ohio —Bill W. Bo¬
dager is engaging in a securities

;

,

of

and

Carl W. Stern

of

municipalities
in
the
Toronto
Metropolitan Area for certain fi¬
nancial

York

Exchanges, will be changed

to

Municipality of Metropoli¬
Toronto was incorporated un¬
The Municipality of Metro¬

provided

Calif.—Ef¬
the firm name of

Stock

applied

\

FRANCISCO,

activity
impor¬
providing engineering,
construction, and other services.
abroad

miles.

& Co., Inc., 465
California Street, members of
the

rate

debentures

politan

are

square

Stern, Douglass

an

The

der

of about 240

fective Aug. 31

such

interest

mission and housing.

money of
the United States of America.

ties of freedom.

fund,

provements, Toronto Transit Com¬

Vff:

The

area.

To Be Carl W. Stern Co.

con¬

largely "to
roads
and
sewage,
schools, * waterworks, local
im¬

of* New York in lawful

the opportuni-

with

a

of 3% per annum
yearly will be suf¬
ficient to repay the
sinking fund
deoentures in full at
maturity.
,v

tan

point of the

the north shore of
Lake Oontario
for about 25 miles and
northward
from 6 to 12 miles
and has
an

capitalized

the

Principal of and interest on the
debentures are payable in the City

—

sinking

amount- as

,

focal

area

solidated

To-

priced to yield from

are

the

Metropolitan Area extends
along

so

vide for annual
deposits in

The

lately 3.95% to 4.40%, according
to maturitY- The instalment de-

serving
the

of

ment debentures due serially on
Aug. 15, 1957-1975, inclusive,
The sinking fund debentures are
offered at prices yielding approxi-

The initiatlve

resourcefulness

debentures

#nd (b) $2,863,000 of 4% instal-r

rrv^

be!lef m lL
and

a

Dominion

jng fund debentures due on Aug.
15, 1961, 1966, 1971, 1976 and 1986

con-

tent ourselves merely with

The

10

number, with the City of Toronto

sinking fund debentures
designated as the by-laws
under which they are issued
pro¬

are

offering consists of (a)
$33,59^000 of 4%, and 4V„ X ."ink-

the

call

The

p°<

ron^° The
^Jro™Cfc:. of Ontario, Canada).

to-

in

and

Municipality of Metropolitan

to

increasing contributions

as

_

Corporation is offering

$36,454,000

strengthening the free world.

Great

„

&

the great opportunities that

make
ward

have

headed

group

_

and

on

est.

this

tut*

I

underwriting

.

Corpo¬
after Aug.
15, 1966,

prices
which range from
103% to 100% plus accrued inter¬

For Investment

.

challenge.

-

is

ration
at

the

the

non-callable.
The sinking
fund
debentures are redeemable at the
option of the Metropolitan

$36,454,000 Toronto

of

years

personal experience that
of r American
business

his

-

from

constantly devel¬

sources

have

I

exist

interests of

of

Summary

upon

in

and

sense

general

country.'

With

a

,•

ambassador

an

industrial

development and
raise their standards of
living. In
fact, this effort constitutes one of

and

is

nessman

are

2.15

>

The

20

Continued jrom page

.

Thursday, August 16, 1956

Thus the rails are

decline.

a

victims of bank¬

the first and the worst

of being

tion

Incorporated
be an 11-month,
or
even
a' 10-month year for the railroad equipment
industry as far as production is concerned.
At American Car & Foundry, largest in point of sales
of ACF Industries' seven divisions, I

American industrial empire.

ruptcy in the entire

fear

G. BUDD, Jr.

EDWARD

steel strike, 1956 may

Because of the

pulp and paper industry is an important source of traf¬
fic to the rail lines serving the Southeast, particularly

will lose a day—or more—

we

the strike lasted. Al¬
suffered only moderate

for every day

President, The Budd Company

though

we

talk to the Finan¬
cial Analysts Association of Philadelphia I said it was
**our opinion that after approximately a year of testing
and experimentation and appraisal the railroads will

be

their minds which of the
many new types of trains recently
introduced they prefer and following

steel, the outlook from here on is
good.
Strikes are short-range af¬
fairs, and this one will have only a

make

'

will launch

that
car

a

which should last for a
years." , :
>

program

good many

given about a
introduced a light¬

Tnese remarks were

month before we

stainless

weight

railway

steel

III" which

-'Pioneer

called

in

this

country

of

the

strength

and

developments in the woolen industry are also expected
to take place during the remaining months of this year.
There seems little reason to doubt that the Southeast
ness

1

»

lightweight

which

cars

but to other types of

is

the universal

to every

answer

Because of this belief

activities

and

have developed
have

which

passenger

to

idea.

one

i

research

Rather

their

place.

we

all of

and promoted several new trains

the

on

Los

and

....

-r

Fe's

Santa

This is

swings of the

Chicago

Capitan between

all-coach train

sit "upstairs" and yet have

I

attempting to be a

am

prophet for

exceptionally

an

.railrpad equipment industry will decrease

time progresses.

are

passengers

as

that

(2)

seven

cars

Economic

required to haul 496

are

:

Capitan.

Slumbercoach

The

greatly improved view of

compared to 350 persons in eight cars of

the original El

which

*

>

we

developed

will

into operation on the Burlington in late October,
a

go

This is

unique arrangement of private rooms to accommodate
coach

40

t

>

^

ACF

Each

passengers.

have

beds,

complete

omy

toilet

cars

facilities and generous luggage space.; In this passengers
can

have

for

service is

a

New

Haven

Railroad's

train that will have

New

Diesel
the

Car, each of the six

An adaptation of
cars

of the fixed

.

per¬

our

Rail

consist

new

General

the floor.

Motors

Diesel

engines

located

They will also be equipped with axle-mounted

electric traction motors that will take the

train in

and

Orders

steady

ity in

for

Rail

our

has proved its worth in

every

runs

to

the

highly successful
Railroad

New

a

well known than

*

our

ours

of

Based

we

delivered

we

one

orders for 100

.

nature

1

}

record

at

||

some

six

•

expenditures for new
facilities and new equipment.

commuter

first

compare

believe will

We will shortly

export cars of varying types.

-

their

weoutts

already started on 189 new plants and

competitors.

/

,

major

'V:'

recent annual meeting I

our

found our stockholders

in the legislation presented to Con¬
gress as a result of President Eisenhower's Cabinet Com¬
mittee report—legislation that would permit common
carriers to make competitive rates. What was said then
interested

expresses
-

pansion
paper,

com¬

/

Among the types of industry most
actively engaged in substantial ex¬
programs are the pulp and

be

chemical, synthetic fibre, ce¬

ment, electronic equipment, carpet
manufacturing,
food
processing,

important and

now

months.

A.

should

be

clearly the reasons we believe such legislation
passed.
has spent more than $370 million in the

Southern

service.

an

six

At

keenly

favorably with the same
period of 1955 and there is every
indication that expenditures for that
purpose during the last half of 1956
will be even higher than during the

early this

Harry

;

jobs and we expect to exceed that this year.
'■
Serving a territory of such promise makes us optimis¬
tic in spite of the handicap of having to operate under
monoply-type regulations. Still, we cannot be expected
to enjoy seeing our traffic drained away by other car¬
riers and the public denied lower transportation rates
because railroads are forced to hold a "rate umbrella'*

Announced

a

are

expansions that will represent investments of $223 mil¬
lion. Other similar projects already announced will add
another $400 million to that total. Last year the indus¬
trial expansion on Southern's lines created 20,000 new

that the :

DAVIS

other companies

.

Work has
-

'

'

McD.

result,

the Southern's lines

the progress made during the first half of
it is apparent that 1956 will prove to be another
year for
industrial development in the area
by Coast Line.

phosphate rock and construction ma¬
The pulp and paper

terial industries.

here for export and have

other countries.




economical

an

a

serve

on

which is perhaps less

domestic but it is

in

.

for

seizing the opportunity to set up shop in the South to
this expanding market.: Industrial growth along
this year offers clear evidence that
the "industrialization spiral" is still moving steadily up¬
ward.
•.
;
".
; '

Passen¬

the year,

and flexibil¬

licensees in Europe. Brazil, Australia and are

pleting arrangemenis

As

President, Atlantic Coast Line Railroad Company
-

time again.

York-Washington

cars

'

C.

popular vehicle for the Pennsyl¬

growing activity. We build

such

plant

suburban

equipment that

as

(6) Our foreign business is

announce

♦

Pennsylvania Railroad is another varia¬

of lightweight

vania

continue

economy

time and

(5) The tubular train which
summer

Cars

kind of service from

service to mainline

.

„

Their spending for
the new payrolls

services.

over

Diesel

and this development, of

pace

years ago

tion

them.

.

served

out of Grand Central Terminal.

(4)

of

products

of

beneath

kets

railroads will"feel It Indumbent upon themselves to buy

"Flying Cloud" will be self-powered by 300-horse-

power

the lines.

and

and
cash
registers, and
providing increasing mar¬
all kinds of products and

pockets
thereby

^

formance with available top speed of 110 miles per hour
and seating capacity of 448.

on

past decade.

bring have been and are in¬
fusing new vigor into the South's
economy—putting more dollars into

they will be forthcoming./,
/
/ .
Furthermore, in recent years our own industry has
awakened to the heecl for* research and development of

York-Boston

exceptionally high

rails for them

,

optimism for the future of
the
railway and the territory
it
serves stems in large measure from
the South's position in the heart of
what might well be called an "in¬
dustrialization spiral."
New
industries by the hundreds
have taken root in the South during
This

they

orders have been waiting on some jelling of the
railroads' own ideas of what they want and need, but

complete privacy at coach fares.

the

are

■>

,

Speaking for Southern Railway System, I feel confi¬
dent in predicting that when all the results are in, 1956
will measure up to the best years, the Southern and the
South have-ever had..
'
V
■

construction

in waiting to order long-lead" items like railroad
until there

President, Southern Railway System

/'

the

ger car

(3) The "Flying Cloud" which we are now complet¬

ing

j.

,

.

,
' - /
Industrie's, Incorporated', as readers of the Com¬
mercial and Financial Chronicle are aware, has been
striving—with a' gOod deal of success—to diversify and
expand into other indtalwOrking fields'so it will not be
so dependent on railroad equipment'business.
But even
so, I am optimistic about the future of the railroad equip¬
ment industry.
*
*
*
'
'
" '
v..
;
Several faifroad 'presidents* have told me they intend
to have consistent -and steady buying programs.
These
men are leaders in -the industry/ If they set the example,
other railroads will follow/ There is obviously no econ¬

as

where the /

throughout the-west.

scenery

advantages

iri the terri¬
\

HARRY A. DeBUTTS

r

smooth and quiet ride plus a

wonderful

>.

a

,

industry as a whole. Nevertheless, I will prophesy/
to the. extent .of. saying .that J believe the wide cyclical

-

the

crest of

promise of a continued expanding economy
tory serve'd by it.
,

the

El
an

divisions than

its

-

Angeles.

passengers

train with its tremendous edge

standard cars, the

^shippers' Car Line Division of ACF Industries is add-/
in# more new cars to its fleet during this fiscal period <
than ^it has in-many ~a year.
The fleet will cross the
15,000-car mark this year, and is steadily increasing and
diversifying its service to the nation's growing industries.
I am more at home discussing my own company and

,

(1) The new Hi-Level cars which recently went into

service

•

high wave of
industrial growth and general development approaching
boom proportions. The growth of the State has particu¬
larly resulted in the establishment of a great number of
service industries and distribution and warehouse facil¬
ities throughout the State.
These several factors give Coast Line a reassurance
that the remainder of the year
1956 contains ample

sections of the country.

many

be

service.

have not limited ouh

efforts

include:

These
;

we

sales

our

have

equipment while

that lightweight

advantages to the railroads will not

oifering many

.

Florida continues to ride the

hour.

man

per

.

expanding economy.

Because it is 10 inches
Lodapto, our new version
will open various tunriel bottlenecks that
shut off the growing piggy-back service between
hauled

tons

plants has been announced, cost of which runs into
millions of dollars. These plants are designed for
expansion to meet the demands of an over-

many

future

of the Adapto,

opinion

our

new

The interruption

the bright side, we are ahead

lower than

i''V

figure.
It

in

operation and a better passenger profit

with economy of

on

door convenience and the

will also provide the' railroads

believe

we

That

weeks.

18

of the field in
both freight and passenger equipment.
The ACF-Talgo
is running on the Rock Island, and will shortly be in
service on the New Haven and Boston and Maine. The
Adapto with its versatile container service, we believe
to be the vital link between the truck with its door-to-

just to the lightweight cars that we look

But is is not

of

will be more severe. We are, however, pro¬
by escalation clauses to most of our sales con¬
for increased costs of material and labor. |

Back

operation and passenger comfort.
ior the development of a market,

aggregate

an

electric power

companies serving areas in which Coast Line operates
continues at a high level. Several new plants are under
construction at this time and establishment of other

year

tracts

in

that will provide great economy

cars

for

loss before taxes of $1,100,000/

a

tected

search

provides the most logical answer to the railways'
for

this

that "Pioneer III"

Now I am even more convinced

men.

meant

cause

olants

Foundry

in the wool textile busi¬

in the next few | years.

Expansion of generating capacity by

earnings, naturally, will be
steel companies' order books last
closing of three American Car and

The reshuffling of

November

-•

several months thoroughly examining

spent

will become an important factor

The effect' of the strike on

and
testing "Pioneer III" and its radically new lightweight
truck with air springs before we introduced it to railroad
We

necessary,

felt.

Edward G. Budd, Jr.

safety requirements of the Associa¬
tion of American Railroads.

expansion in territory served by Coast Line and
its subsidiaries has already been announced. Additional
ther

*

hope, steel

we

Clark

April 30, 1957—but we'll be busy.

that

all

meets

F.

and woven, is be¬
Southeast and its fur¬

carpet industry, both tufted

The

coming solidly entrenched in the

.quality and quality will be flowing into
our plants again.
We have a backlog of orders for 17,000
freight cars. We won't complete 90% of these orders as
we had hoped to do during our fiscal year—that is, by

it carries in its
is the lightest

built

ever

car

for the establishment of additional major
operations in the area served by Coast Line
encouraging and it is expected that the chemical in¬
dustry will provide an important source of additional
traffic for Coast Line.
Prospects

chemical
are

James

Labor Day,

After
in

standard 85 foot length
still

where they can re¬

to

full-scale

planning.

car

pletely designed and built ourselves.
This car weighing 595 lbs. for each
of the 88 passengers

opportunity for development in the South. New plants
production of chlorine and caustic soda, nitrogen
solutions, titanium oxide and other chemicals are under
construction or have recently been placed in production.
of

momentary effect on our long-range

com¬

we

restored

sume

v

industry has opened up a vast new field

for the

inventories to

cating plants wait for

up

-

The chemical

operations without
interruption for want of materials.
However, with peace restored in

heavy passenger

Coast Line.

production curtailment during the
strike itself, we will lose an equiva¬
lent amount of time while our fabri¬

Approximately two months ago in a

Line have expanded their plants or are

of greatly expanding production facilites. A
large number of pulp and paper concerns are presently
engaged in surveys looking to establishment of new
plants in the Southeast, and it is expected that several
new projects of this type, involving a large capital in*,
vestment, will be announced and will reach the con¬
struction stage during the latter part of this year. The

in process

President, ACF Industries,

tonnage loser
in the unenviable posi¬

make the rails the only

lated-in ability to
in

6

served by Coast

CLARK

JAMES F.

»

. .

the Industry

Discuss Outlook for

Railroad Executives

*

Chronicle

Commercial and Financial

(696)

C.

McD.

Davis

industry,
of

as a

unusual

whole, is in a period

activity.

Demand

for

products, particularly newsprint, exceeds
present production capacity. 'A number of existing mills
many

past ten years to modernize its property and improve its
operation. We have a far better and more efficient rail¬
road than we have ever had before.
Yet if

we

try to pass along these

benefits to

our

ship¬

in the form of a lower rate, our action is often dis¬
approved by regulatory authorities - because it would
taK/e traffic away from some other form of transporta.-

pers

tion—which, incidentally, obtained the traffic in the
first place by undercutting railroad rates. ' - "
We think this makes very little sense, and. that it're#

paper

•

Continued

on

page

24

Volume

184

Number 5560

The Commercial and Financial Chronicle

...

(697)

James 0. Couffer Now
......

n

i

o

James
the

G.

New

Couffer

York

.'industrialists

has

joined

of

Drexel

Office
&

listed

Street,

the

the

important

opportunities
weekend for the

iuav.nv.1
teachers

t

o

invest¬

firm

meet

and

uiiw

and

investment
vwv—r

,***

talk

■■

—«

men

to

The 13 Banks for Cooperatives

dated

informally.

collateral

ers.

James

M.

Henry

and Philip D.
Maughan have become affiliated
with Daniel Reeves & Co., 398

J.

%

•-■

The
ered

'

.

Stock

a

in

the

mu-

Securities Business

••

TROY, N. Y.—The

at

par

and

3.50% per annum.

are

bear

1

was

-phe Banks make and service loans
farmers' marketing, purchas-

ing> and business service
uajva

"
atives

being off¬

f vV

on

cooper-

.,

&

The interest is

Shelley, Roberts Adds 7
Duane

sale

of

these consolidated debentures will

;

■

Join Harry Pon Staff

7

M.

Hinds

to the staff of

has

been

added

Shelley, Roberts &

Co., 9486 Santa Monica Boulevard.

,

(Special to The Financial Chronicle)
•

AZUSA, Calif.

Sweet

has

joined

—

'

13.

.

W. Carroll
Mead,
Miller &

partner, Mead
Baltimore, Mary¬
H.
Liberty, di¬
Council, jointly anevent.
Mr.
Mead,

Co.,

land

and

rector

James

of

the

nounced

'

the
who is chairman of
the Education

y:

Committee,

.

Investment Bankers
Association of
America, is serving
as
chairman of the forum
!■

Taking

Council's

session

v

;

•

active

an

/

pro¬

gram committee.

part

will

in

be

the

leading

executives of companies
who are
members of the American
Stock
Exchange, Association of, Stock
;

;

:;7

Exchange Firms, Boston Stock
Exchange, Investment Association

of

New

York, Investment BankAssociation of
America, Mid¬
Stock
Exchange, National
Association of Investment
Companies, National Association of Se¬
curities Dealers and the
New
ers

west

,

York

Stock
that

Exchange.
most

of

It

the

is

ton and Midwest
Stock
will participate.
,.

yZj, The

.

of

purpose

expected

other

exchanges, in addition

regional-

to the Bos-;

Exchanges,; J
v

.

the

derstanding
business
.

world.

of

and

It

the

-

;

Industrial

Council is to promote better

»

key

un¬

role

of

industry in today's

is organized

by R. P.

I.
with the cooperation
of American

business..:.

Approximately

-

1,000

■

leaders of the oil,
trical

chemical, elec¬
manufacturing, automotive

and

pharmaceutical

have

been

host

—.....

industries
nearly 4,000

to

Something New under the Sun. It's the Bell Solar Battery, made of thin discs of silicon, an ingredient of common sand. It converts the
sun's rays directly into usable amounts of electricity. The
storage batteries beside the solar battery store up its electricity for night use.

secondary

school
teachers
and
officials from across the nation
in

the five

preceding sessions.
Some 750 educators

v

representing 7
secondary schools from Maine to
California will attend the "AmerSecurities Business" session.

^

ican

Most

of

them

will

be

Bell

System Solar Battery Converts Sun's Rays into Electricity!

secondary

level

social studies teachers
included will be state

but

Bell

commis¬

sioners of

lege faculties.
■*

will

nies

>

be

in

Meeting with

I

top executives
the

of

securities

,

compa-

business—

•

banking and brokerhouses—who will lead discus¬

sions

pertaining

4

their

how

business
the

gether

two

to

and
can

the

role

education
best

work

of

/

and

to-

to

today's

analyze

the

country's structure
youth of the nation.'

-

for

the

Ever 'since

been

-

meet the
problems oL
world.
Secondary levels
educators were selected to attend
the Council because
theyr

"

for telephone service and for all mankind

them

investment
age

Telephone Laboratories invention has great possibilities

education, superintend-

ents and members of
teachers col-

v

Archimedes, men have
every lamp that mankind would
searching for the secret of the sun. 7 need. 7
7
—
{
-

y' For it is known that the same
rays:

kindly

that help the~flowers*arid the

grains and the fruits to

grow

alsd send

The dream of

Mm

and uranium. 71 :*

the securities business will tell
of
its achievements, objectives and

problems
lation to
and

as

they

the

in

the

them in

country's

progress.

they bring out,
tions

see

The
as

minds

If this energy

could be put to use—
instead of going to waste—there would
be enough to turn every wheel and light

The

far is like the opendoor through which we r;an
glimpse exciting new things for the
ing of

•

future.

efficiency has been'doubled and its
;

uses are fully developed.
good and pioneering start has

been made.

use^u^ness extended,
There's still much

to

be done before

the battery's possibilities in telephony

progress so
a

<

Great benefits for

'

Im major luncheon and
dinner
addresses, leading spokesmen for

a

ages

first announced in 1954. Since then itsv
first announced in 1954. Since then its

„o

and for other
But

•

Laboratories after long research and

i

of coal, oil

,

has been brought
closer by the Bell System Solar Battery.
-*It was invented at the Bell Telephone

us almost limitless
power... nearly as
—.1
oil
much every three days as in all Innwri ;
known -

reserves

ever

of the

sun

economy
which

points
well
of

as

the




ques¬

educa-

BEIL

telephone

users

and for all mankind
may come from
this forward step in
putting the energy

re¬

TELEPHONE

SYSTEM

to

staff

B.

of

Harry Pon/ 711 North Azusa Ave,

Rensselaer V /
Oct. 11, 12

Polytechnic Institute,

Pamela

the

>

a national
forum of educators
and American
Industry, will have as its
subject,
"The American
Securities Busi¬
ness," it has been
announced. The
sessions will be held at

was

B. Franklin

Co.

/BEVERLYHILLS, Calif.—

proceeds from the

Calif.—

Roxbury Drive. He

formerly with Samuel

•

(Special to The Financial Chronicle/

The

445 North

J

v..

Staff

BEVERLYHILLS,

terms particularly suited

to their needs.

to

Robert
A.
Morefield
has
been
added to the staff of Bache
& Co.,

at

-""

1957.

Bache Adds

(Special to The Financial
Chronicle)

Administration,

to

■

interest

Credit

sixth annual

Industrial Council,

and

/'/

Farm

v

Subject of Council

;

Exchanges. Mr Henry
Mr. hph

: VicePresident previously with Harris, Upham &

..

of

the

ssas

Company. // '
nicipal bond
Blyth & Co., Inc. .'77

\

department

debentures

that>he

wasV

.James G. Couffer

'• v "•

debentures

SSSjS®
O

trust

the Farm Credit Act of 1933. They
operate under the supervision of

nationwide group of security deal-

•yBEVERLYHILLS, Calif.—

Vice-Presi¬

chartered under the provisions of

Aug. 14 offered publicly $50,000,000 of seven-month consolion

through John T. Knox, their fiscal agent, with the assistance of a

Couffer

formerly

t

GOfiEiGHlllVGS

,

(Special to The Financial Chronicle)

Mr.
was

B-

are

Ch"°nicle)

.FRESNO,

Two With Daniel Reeves

has
need.

dent of
.....

of

i These consolidated, secured deCalif.— Gerald J.
tfentures' We 'the joint and several* Johnson has .joined
Ihev staff of
obligations of the 13 Banks for E. F. Hutton &
Company, 1035
Van Ness Avenue.
Cooperatives.; The
Banks
are

.

session

join* e f. hutton co

*956> and for iendinS operations.

Fftr

but

part

•

AIX^«^J L.. 14 D..U

„(Jll6r8t9 BV U B8HKS

participate. Not-

formal program

an

banking

a n n o u

a

will

throughout the

New
C i t y i,

York

in the

considered

Co., 30 Wall

ment

"$50,000,000 of Befss.

inS and afternoon panel sessions,
in-which, both the educators and

a

With Drexel tt G0>
Willi VICAGI & VV.

21

practical

use.

The Commercial and Financial Chronicle

22

Bricks
which
resembles small rocks mixed in
sand, but after an exterior mortar
has been plastered over the whole,
a
wall appears sound as a nut—

jirst page

faced

was

economic guts of the
then a remark to
me
by one working intellectual
has significance.
When I asked
polite
questions about. various
Khrushchev policies
in foreign
affairs,
my
informant told me
"government policies are none of
my
business."
Even assurances
that
my
government's policies

"social realism."

how

of agreement on

This lack

problems, and casual
subterfuge in concealing defects,
seems
to typify. most aspects of
to approach

My observations

Russia.

modern

having

necessarily superficial,

are

days in the

returned from only 23

Union,

business
effect; the sub¬

definitely

were

but coupled with
more penetrating analyses
of the
Russian scene; they may point up
the combination of fiery national¬
Soviet

Union,

Soviet

my

seemed to have no

ject was closed.
entering Russia, I re¬
solved not to compare the country
Prior

ism, child-like naivety, political
indifference, and personal genial¬

to

anything but itself 30 years
Contrasted with serfdom un¬

with
ago.

the composite,
enigmatic Soviet citizen.

der the Czars,

Touring Russia gives even the
most dedicated observer a kalei¬

nificent success. :(:;;Con^asted,;;^th-

ity which comprise

ments in backward

the
are

political

tics.

The

observation;

within Oregon.

see

spon¬

was

to

by his employers, J. Henry

of

everything

some

Helser & Co., investment managers

surgeon

be heard

will
land

taken

for

Moscow

in

KPOJ- in* Port¬

over

throughout Oregon. He
16mm film footage

and
has

also

For

one

you

release

TV

a

Hallock

was

sent

on

similar

a

Union

States and

a

of

citation

director

The

not acknowledge

in the economic state."

man's role

of

the

world-famed

Museum in Leningrad

Hermitage

mission in

Speaking

theses do

"their

in

September, 1952 to Eng¬
land, to record a series on British
socialism. The resulting broadcasts
received an award by the English-

hos¬

(serving 50,000 people) dis¬
missed Freud, Jung, and Adler as
psychiatric
historians
because

pital

'' ;■/ •' ;

Oregon.

at a major Moscow

Titians,
stated

(which is cramed with
Rembrandts,
DaVincis)

"social realism

flatly

that

quite

adequate and complete art
containing all the beauty

United
by Ohio State
the

form,

was

a

required; that more people are in¬
in
this museum than in the masters."

University.

terested in the socially real art

Russian View

A

of U.

media

consider

the Soviet Union—and here
dual

as being firmly con¬
}"monopolists"
(un¬
All U. S. workers are

"exploited"
the

stress

mal

-(unspecified);

maintenance

colonies"

(such

we

"Vene¬

as

force

zuela"); our one million unem¬
ployed are "tragic"; our injustice
is personified by Eastland, Mc¬
Carthy, the Matusow
perjuries,
and
the
Rosenberg and SaccoVanzetti cases. >
However,

Russians

seem

to

own

the

writ

of

habeas

not

or

ers

corpus,

in

was

-

'

MVD

formal colonies"

If,

as

versity

.

.

the recent Harvard
report

has

stated,

White collar workers

are

Uni¬

young,

the po¬




of

of

the

two-

realism"

private

lies

construc¬

major target of Russia's
(sixth). five-year plan. I
that Moscow

was

build¬

annual rate of 1,300,000
square meters — almost exactly
enough to keep pace with her
birth
rate
(however,
Russian
builders are speeding their construction
pace
with such
tech¬
as

pre-cast concrete, etc.).
sanitary code

The current Moscow
_

specifies
meters
now

a

per

minimum of 9
person, which

being observed.

square

is not

,

New

buildings (primarily mul¬
dwellings)
are
going up
everywhere, and—against the sky¬
line
with
huge
cherry-picker
cranes at work, trucks loaded with

tiple

—

construction

sive.

.

"social

an

niques

compared

with the FBI—about which they
profess to know a great deal, all
bad. Neither Poland, nor Czechoslovakia^nor Hungaryf nor Ro¬
mania,- nor Yugoslavia, nor Albania, nor Bulgaria, nor,-East Ger¬
many, mor Communist "China, Ko¬
rea, or Viet Nam are Soviet "sateliites'.' in, .-any sense of -the word
and
certainly they - are -riot "in¬

the

told

ing at

'

of

field

current

will not discuss the nature

the

Production

example

good

the

tion

can¬

secret police activity and
unjustified arrests and executions
on Beria and stoutly resolve that
all this is now past.
They brush
aside almost any inquiries as to

A

sidedness

(and

by jury). They

nature of

revolt," she answered.
Inferior

blame

the

come

ac¬

em¬

of the 1933-35 "purge trials." They

t

It will

in time." How
how-long, do you

"Well

long?

theses of having 50 do
work of 1; of doing without

without trial

"No.

peacefully,

think it will be before your work¬

ployment
the

clouds

win?

to

about

*

cept at face value their

identity

fall;
yes,
communism
will
triumph." Would communism use

"infor¬

of

again

the issue).
A 19-year-old girl counselor in a
Young Pioneer camp near Yalta
told me, with a beguiling smile,
that
"of
course
capitalism
will

the

by

named).

interviewed

firmly in the world dom¬
ination of communism (they did
not discuss world domination by

United States
trolled

I

believed

nal propaganda or Western infor¬

mational

Russians

Those

S. A.

Economically,
Soviet
people
Who
care
enough to have read
either their own country's inter¬

But

canvas

cific

material, it's impres¬
Turn the

get up close.

around

and

look

at

citizenry

was

to two years.

Mosckveetch
factory which I visited (making

directing

the

example,

newer

This

model.

in

production

a
went into

car

of this year
rubles. Prior to

the plant turned out 180
autos a day; it now produces 130
a day and hopes to reach 160
by
May,

spe¬

building methods—the speed
of work, the calibre of work—and

which has

Kiev
a

—-

in

this

city

burning demand for

Incidentally,

the

vate

passenger

of the 59

cars.

More,

phase

of

of

see

trip,

our

some

utili-

colleges were win re¬

cess" for the summer so there was

point in seeing one of them.

-

Russian

society, early," "too U
late," "open tomorrow," or "I shall
it

either

was

call

Moscow."
Private

No

One
a

"too

the

of

Savings

strongest

-

bases

*

for

capitalistic society is
ability and incentive to save

prosperous

the

for its

money;

earning

own

or

■'$'

for its

■!

I

This

power.

foreign

seems

use

reasoning
the
Russian.

to

Talking for two hours in Odessa
to a newly-married couple on va¬
cation
save

I

learned

A

that

only

money,

The state

takes

"we

for

not

do

vacations.

^

J?

of the rest."

care

bond does exist, V
told-—pays 6% per
but how extensively it is

government

which—I
annum,

was

held I do not know.

Younger

per¬

thoroughly imbued
with and dependent upon a pa-

sons,

by

now

ternalistic
fettered

by

government,

are

un¬

worries about "secu¬

rity' 'or "tomorrow,"

*

:

'

'

hospitals, and of course

schools arid

no

most

on

asked to

we

tarian

402,

May

15,000

costs

and

Mosckveetch

the

im¬
pressive statistics: In Kiev there
are, says the vice-mayor, 60,000
college students, 22 daily news¬
papers, 59 hospitals or clinics, 193
kindergartens, 5,000 doctors, and
7,000 teachers. I tried in vain for
three days to see the inside of one

ies, in Moscow, I learned that the
actual waiting period was from

siderations^.

headquarters in Portland, Ore..
Hallock's interviews—14 in all—

produce

told us

problems of
that they had
to wait "one or two months for a
new
motor car—the demand far
exceeds the
supply."
During a
later visit to
one of the Soviet
Union's three automobile factor¬
his

physical nature is colored
extent by political con¬

a

mass-production trick with in¬
teresting overtones.
The factory
was re-built in
1947, producing a
car
costing 9,000 rubles—$2,250;
four rubles equals one dollar. In
mid-1955 retooling was begun to
a

private autos; this city of one mil¬
lion people—there are 5,000 pri¬

that one of the major

attempt at objec¬

does an

so

tive

But

when

impressive statis¬
vice-mayor of
Kiev
of

(population one million)

material standards of her peoples.
And

sored

science

state

13 to Aug. 15 to tape-record
interview
material for broadcast
July

His trip

sive

(or
of

the

four-passenger sedan much like
miniature Plymouth) has turned

Back-to

Russia has learned the impres¬

con¬

period

the

Statistics

then

a

a

year's end.
Distorted

and political
leader
of
worldwide communist
ideology. Just as her foreign re¬
lations suffer from this duality of
identity and purpose, so do the

to

sent

was

during

Union

Soviet

: independent

AUTHOR

THE

Hallock

Ted

of

identity and Purpose
subscription to

cepts, Soviet Russia enjoys
suffers) the concurrent roles

drain gutters, facades,
exterior representations
solidarity.

dormers,

and other

world,

Further, by its
Marxist - Lennist

do

withal, hundreds of man hours are
devoted to the addition of rococco

sluggishly sad.

Duality of

personal desire for peace and
an
abysmal
ignorance
of the
make-up and intent of Western

buildings is crack¬
work is uneven.
not look plumb.
But,

Cement

Walls

throughout
past three decades, the results
the

in

where

cere

4

enjoying mag¬

political develop¬
countries else¬

and

economic

doscopic, uncorrected view — a
thing of colored bits and pieces,
which never quite fit together.
I
found no
real national pattern,
even
in communism.
Two char¬
acteristics alone seem common to
most Russians, an evidently sin¬

society.

the communist ex¬

periment today is

Plaster in still

outside.

uncompleted
ing.

and

litical

from the
hailed as

away

work

His

canvas.

the

from

Today

In Soviet Russia
deformity

laid with a mortar mix

are

Social Realism as Seen

"naturalism."

becomes

it

Continued from

'

Thursday, August 16, 1956

...

(698)

Contradictory Outspoken Views
The double standard

realism"

was

of "social

again apparent when

'

Volume

184

Number 5560

.

.

.

The Commercial and
Financial Chronicle

(699)

biologist

a

assured

in

on

me

shipboard

that

widespread

Sochi

gressional committee without tak¬

that

the

plan

goal

number

erection

marily

for

of

*for

prompted

one

the

is

sanitoria,

tuberculars.

American

the

posed

"what

the
'widespread
use'
of
streptomycin?"
To. which there
no

answer—a

standard

lish.

Rus¬

A doctor from

Dnieperpetrovsk
that, according to jour¬
received, the incidence of
poliomyelitis was insignificant—
Moscow

a

doctor

confirmed
Russians are
vaccine.

I

this.

ies

the

was

so

kind

very

are
some
sample Russian
questions about America: are all

going
in

immediately

western

in

cities<

Don,

students."

literature

evidence

No

of

in

any

of

any

visited:

we

Vilnius.

or

All

Voice

America broadcasts in Russian

after

strike?

on

of
are

jammed, yet—again paradoxically

Do Negroes live
Is there any free ed¬

ghettos?

are

Moscow,
Leningrad,
Yalta,
Sochi,
Kiev,
Odessa, Tbilisi, Minsk, Rostov-on-

No understandable answer.

fired

"qualified

was

the

Here

strikers

to

other

working on a polio
why, if the in¬

asked

cidence .of-disease
small.

But

Eng¬

authors

large cit¬

independ¬
,

read¬

in some cases, William
Faulkner.
The "New York Times" and
"New
York Herald-Tribune" are
avail¬
able in libraries within

me

nals he

ently

The best-known

we

con¬

Fast, Mark Twain, Jack
London,
Sinclair Lewis,
Upton
Sinclair, Ernest Hemingway and,

dodge is to protest lack "of
authoritative knowledge."

and

interview,

questions

—

ucation^ in

America?
What hap¬
pened to Autherine Lucey? Can
you refuse to testify before a Con¬

English-language

grams are let in.

VOA

Jan

pro¬

Peerce, who

recently in Moscow,

sang

ferred to by Soviet critics

was re¬
as

We

America

like

we

to

public."

"the

now

that the 20th

Party
Congress has laid major emphasis
upon
peaceful co-existence, how
is such a policy compatible with

of

one

our

services

bly the answer was that com¬
munism would, slowly but
surely,

which

by

the Lord

achieve

chev

pressure,
conquest.

interviewees

acknowledged

that

realized he

after

Mr.

was

set

ently

public
been

in Russia.

speech

printed

The

has

they in

turn

"break

the

have

been

to

Stalin

of

of

Co. 4% 1st

various steps toward

offered

Power

a

a

new

by the
pany for the acquisition of

the

"Proceeds

accept

lelop superior transportation todays and in
ture-

:

has spent

on

over a

modernization. Since 1945

half billion dollars

on

iar.

In this

a

new

|diesels

on

on

for

year,

tion at C&O's Atlantic

|90% of. its 88,000 freight

cars' are new or

new cars are on

a
-

port of Newport News.

speed ahead for coal. As the world's largest

carrier of

keeps

completely dieselized.

;v

$8 million bulk cargo pier is nearing comple¬

new

C&O's fleet of

V.

complete!^

modernized. At the other end of the
railroad,

equipment. With 222

order this

and 13,000

.trainferries has been

railway.

new

)tives will become

seven

cally

quality coals will be loaded

No fear

into Great Lakes vessels at C&O's Toledo docks

.

order.

this year

hauled

and

to

more

than 17 million

Newport News for

fect

-

I

Full
is

ocean

movement.

culation

theory

Newport

want

plant tracks

new

All

$3 million

are

ing for

of the

new plant

\Ford's huge

new

tracks is this 3-mile C&O spur
Lincoln plant at Novi, Mich.

;

'*■'

!

a

•

^

>

-

" V>

on

literature,
political

and

a

war,

status

arms

MIAMI

us,

like

you

and

(one teacher of law

"Mr. Dulles does not talk
do.").<

welfare—which

and growing!

an

the

to

effective

is

of

do with

maintenance

communist

Joins Atwill & Co.
„

■

.

Ohioi
-




1, OHIO

.7

"

ONttWUO?

do
or

not

not

which

i
3803 TERMINAL TOWER, CLEVELAND

.

.

(Special to The Financial Chronicle)

MIAMI

with

as

it.

..

necessary,

'

:

choose

to

When

bored

asked

with

not

one

-

Inc.,

601

is

;

connected

v.

now

Company, Inc.,
Avenue, North. .

First

'

With A. M. Kidder Co.

!

(Special to The Financial Chronicle)

"j

TALLAHASSEE, Fla.—Glenn T.
Allen, Jr., is now affiliated with
A. M. Kidder & Co., Hotel Flor-

;

idan.

:

.

;

;

of

Two With

have
how

whether

TALLAHASSEE,

Fla.

Dave

—

Caskin and Mrs. Agnes W. Martin.
have
joined the staff of West
Florida

Securities

Company,

TAMPA,
with

now

pany,

;

Inc.

King Merritt

(Specral to The Financial Chronicle)

Fla.—Nathan

King

Inc.

'

Merritt

■

^

is
Com¬

Abel
&

.

Halbert, Hargrove Adds

lady

(Special to The Financial Chronicle)

became

the

journalistic writ¬
ing style in "Pravda" or "Izvestia" (acknowledging in my ques-

West Florida

(Special to The Financial Chronicle)

Joins

young
ever

Palmer

/

Fla.—Sul-

with Curtis Merkel

r,

discuss

she

•;

affilated

Company,

PETERSBURG,

P.

vus

it has political limitations;
becomes a self-truth.

or

become

and

(Special to The Financial Chronicle)

ST.;

then
I

has

Atwill

Curtis Merkel Adds
.

UHipMLU*

whether

BEACH, Fla.—Joseph T.

605 Lincoln Road.

economy.

Young
Russians
consider
that they live in a free state—
artistically and physically. They

'/A

.

and

Company, 317 Seventy-first St.

(6)

'

added

course

apparent
regard
for
they have worked for their
money or what .they can-or cannot

*

!

Fla.—Benja-

condemn

(5) The rights of the human
being are subordinate to his phys¬
ical

•

"V-

'

BEACH,

Schwedel has been

Cashman

'

I

Railway

'

to the staff of Daniel F. Rice

scheme").
President Eisenhower
is respected as a man who knows
war
well, who hates it as much as
the
Russians, who wants peace,

told

family? Write to:

and

■

interest, $37,673,000;

income $30,957,000.

net

min K.

/

hard

portfolio of pictures

during the
May 31, 1956^
$201,170,000; gross income

With Daniel F. Rice

people do not
but defend with fervor

little

,-of GHessie^and her

•

■

(Special to The Financial Chronicle)

visit¬

free basis.

a

doctrination

.

;v

•

Young Russians dismiss God with
no
apology, accept political in¬

Would you. like

..

ended

available for
and

The Russian

essential

Chessie's railroad is going

es-

revenues

months

allow the cir¬

Western

ing advisers"

happening—new facilities'new think¬
bigger, better railroad to serve your

transportation needs.

Po-;

served is

exceed

Operating
12

but who is surrounded by "schem-

along Chesapeake and Ohio's 5,100 miles

things

!

the railroad.

area

communities and, incident
electric and gas business,

totaled

equal fervor the arms and
'defense policies of America (i.e.,
the
"open
skies"
proposal
is
"purely' a
military
intelligence

industry. C&O

at a cost of

to

in 286

gas

townships.

sells appliances.

with

frarisportatidn requirements
of the automotive, coal, chemical and other
plants
on

from

its

/to

as cus¬

.

to better serve the

locating

of

soon

.

speed ahead for service to
new

ideas

natural

'

exist of the ef¬

information,

(4)

at

in five

Westernization.

Western

social

their

by 20%.

adding

of

f

3,500,000.; The
company also supplies steam heat

presses

to

seems

i'v assurance will

loading capacity of C&O's coal docks
-

timated

presses

to

/

ing delegations. Perhaps this self-

tons will be

C&O loads almost half of the coal America
exports
overseas. A $3 million addition will increase the

News

immune

'

also redeem-

are

and

pulation of the

tom), coupled with the, gradual
expiration of the Czarist genera¬
tion, have made Russia theoreti¬

with the growing coal industry. Six¬

pace

teen million tons of

of

communities

from Toledo, Ohio and electrical
equipment from England, Switzer¬
land, etc.).
<
v (3)
The propaganda job accom¬
plished since the revolution (as

in establishing Godlessness

bituminous coal, Chesapeake and Ohio

for

estimated

annual

an

distribution

In

turbines and heavy stamp
of calibre (albeit still using

are

tirely in the State of Michigan, inj i(.
the
sale
of
electricity in
1,482
;•
communities and townships,
in-.,,
eluding rural areas, and in the
•

of¬

my

posed by the West, Russia is pro¬
ducing—as illustration—electrical

fleet' of:

Expen¬

Power

100%, plus accrued interest in '/■
each case..vo;
The
company
is engaged, en- *

heavy industry, forced
develop their own equipment

to

Consumers

100%. The bonds

because of economic sanctions im¬

Full

)eed ahead

(2)

expenditures

able at the option of the company
at prices ranging from
105% to

-j-"v'vi |

a

v.

>

decade, Chesapeake and Ohio:

almost

icome

■■■'

:•

camera.

'

;

reimburse

to

sinking fund for
which they will be redeemable at
prices
ranging
from
101%
to

sore¬

was

prop¬

program,
mainten-

these purposes.

of

;

com¬

The bonds will have the benefit.
of

man¬

ihr freight shij^mentsyOn/ Lake; Michigan* C&O's

mod-

[tion, with another $100 million budgeted

I

for

or

for

the

of

$91,000,000, of which approximately $29,300,000 was expended
May 31.

substantial,

produce.

rubles

sale

to

follows:

$20 million, assuring faster- dependable schedules

^

weed ahead

800

service,

construction in 1956

shoes,
1,000 rubles for my wrist watch,
and
2,500 rubles for my Leica

make up a track
improvement program costing

L

at

generaliza¬

as

of

ditures

tions drawn from composite spe¬
cifics, then I would lump my most
observations

the

used

treasury

made for

Generalizations

will

you

be

construction
improvement and

ance

'%'■/

Six

from

will

the

erty,
the

because

years."

If

speed ahead for freight. New, more efficient
classification yards, terminals and signal systems

■

mortgage

1, 1956 and due
Aug. 1, 1986 at 101%, to yield approximately 3.94%. The group was
awarded the issue on Aug. 14 on a

to have

seems

past

Full

«

first

bonds

agricultural

;;

4%

bid of 100.21%.

fered

Chesapeake and

Co.

bonds dated Aug.

instructions.

ufactured goods and in

on

Stuart & Co. Inc. and
yesterday
(Aug.
15)
$40,000,000 of Consumers

associates

de¬

buy

you

Mtge. Bds.

Halsey,

commensurate

with our own), but they are
ly limited in soft goods, light

day

sev¬

Offers Consumers Row.

though
midst). The
handling its down¬

(1) Many Russians make good
money; good, middle-class earn¬
ings (in urban areas, and without
comparing
their
buying
power

the order of the

name

Ehreiiburgs. She didn't.

as

in their

was

its

salient

starting with the forward thinking needed

asked her to

Halsey, Stuart Group

the
Russians
have put their foot
through Marx¬
ism every other day for the

to

the

of a series telling what Chesapeake and Ohio
doing to make this a bigger, better railroad. «

is

Khrushchev,"

automobile you obtain

One

ROAD

I

eral other

"difficult

only;

asked

porter.

Army and MVD to insure public
acceptance of the changed line.
These men have to attempt to ex¬
plain the change in Marxian terms
which, as one informant put it, is

everywhere

slowly

of Ilya.
Ehrenburg,.asking Y
thought he was a good re¬

case

I

Togliattis and other satellite party
leaders who do not have the Red

them

private speech has

news

s >

hotel

our

miscalculated the effect of its deStalinization campaign upon the

appar¬

been read to party members

if

attending funeral
high official—sur¬

a

However, Moscow

the story. The full text of Khrush¬
chev's

from

centralization—when
new

"a bad man,"
told

the

by a awe-struck crowd
kept whispering "Khrush¬

—

with

consistently
they had not

Khrushchev

for

grading

challenged Stalin's revered status
until last February, and that
they
now

that both papers spoke
only
truth, constantly), she im¬
mediately took offense and cited
the

Khrushchev

saw

street

government is

Exemplifying the steel core of
ideologically-controlled
thought,
young

tion

us

rounded

economic

eventual

an

to

in Moscow after

Lenin's views toward world dom¬
ination by communism?
Inevita¬

peaceful

told

was

party

the

across

30

\L

This

openly.
■
•
1 Party members accept the crit¬
icism of Stalin quite
stolidly," be¬
lieving firmly that govenmentby-group is here to stay (albeit

Khrushchev

vs.

posed, time after time, what
to us the major paradox

in Russia:

Howard

sian

told

basic

some

of

Lenin

seemed

Matter

cerning available American
ing matter—in Russian or

about

was

Reading

In interview after

pri¬

This

question

my

hear."

Why

did the U. S. attack North
Korea ?
Can everyone work if he
wants to?

five-year

Crimea

more

Voice

ing the Fifth Amendment?

were

available free
Yet in Moscow I was
told

all.

to

to

antibiotics

use;

23

LONG
F.

BEACH,

Mowell

is

now

Calif. —Byron
with Halbert,

Hargrove & Co.,, 115 Pine Avenue.

>

;

The
24

Commercial and Financial Chronicle

from

20

page

higher costs to shippers and to the

New York,

We feel that all agencies of transportation will
when competition is full and fair, in both
rates, and when the shipper is allowed to
choose the carrier that can serve him best.

public.

CYRUS

this

of

and

service

steel industry.

remainder
industry early
strike in tne
.

.

Company

of the railroad industry remains one
in a bright business picture. Un¬
equine contemporary, the iron horse has been

production—revenue

resurgence

carloads on the
10.3%, operat¬

of the brightest spots

Nickel Plate were up

like his

ing revenues 14.2% and net income
12.8% compared with the same pe¬

gaining steadily in vitality, and his marvelous combina¬
tion of swiftness and efficiency as a
mover
of bulk commodities cannot

carloadings

v

by any other form of

be challenged

r.

riod in 1955. However,

;

of

required

19.9%

■

$13,000,000,000 the Class I carriers
budgeted for capital expendi¬
tures and material purchases for the

c

„

railroad with our

a

pattern to comment with any assurance on the outlook
for the railroad industry in general.
,,

Cyrus S. Eaton

net income in

c&0

set

all_time

an

in savings

still another

share. All indications point to

per common

for

record

>V

and buying.

com-

this

..v

'

•

•

As

•

signing of new contracts between the na¬
tion's steel companies and labor, I look for improvement
in the business of the Katy Railroad and the railroad
the

With

railroads

haps, than

While

^asic metal
others

were

to

Curtis

as

the mills

resume

carriers

pro¬

during the months

impact of continuing drought
in important parts of Katy territory
on
the railroad's volume of freight
and

by

is

revenues

a

..

of

program

income

net

is

lower

attributed

be

can

to

a

chase of

has

work

more

than

ratio.

program
More

have been
year

and

to

than

mechanized

substantially
units

added to the

an

delivery.
Passenger

car

of

additional 550 units

with

in

the

stepped

a

reduce

new

fleet

continuously,

systems through the

aoplication

$5.50

in the

;

v

.

30, 1956.

a year ago.

products

Ship¬

were

road products a year ago was abnor¬

:

mally low.. Unfilled orders amounted
$60,000,000 on June 30, 1956, as com¬
pared to $40,000,000 on Sept. 30,1955.

and

earnings for the balance of the
Production schedules in
some
areas
have.; been ; adversely

fiscal year.

affected because of setbacks in deliv¬
Charles C.

'jfkhow
schedules by customers as a
of ..their inability to secure
basic steel products.
Assuming the:, "pipe lines" are
filled in a reasonable time, we could have our best year.
Orders for new freight cars have increased substan¬
ery

result

.

"

The

their

car

bad-order

freight

equipment

since
are

up

its

the first

of

*

cated to

seeable

defense

our

of

our

of

conditions which brought
of our railroads

and

abroad, during
indi¬

within the fore¬

railroads are

transportation that can approach our military
an

have

been

effected

require¬

the duty of ODM to

general public and our legislators that new

possible for the
with other forms of transportation,

legislation must be enacted to make it
railroads to compete
so

that they may become

financially sound.

In addition,

Commission for the abandonment of two unprofit¬

and

of branch lines and other segments

are

study.

These steps and others in the planning stage are all
designed to strengthen the Katy Railroad for the job of
better serving the expanding economy of the Southwest.

position.
for

This is

necessary,
no more

to maintain them in a strong

than

our

Government is doing

private industry and other forms of transportation,

which
With

we

consider vital to the defense of

the

present

progressive

approximately $3,000,000,000, or about
spent on new freight cars in the
Over the past year old cars have been

has been

railroad

our

country.

management,

new

since

cars

could be built to take their

;
the

to

end

made up more than

time

that

the

World War

of

II

company

products

has entered the

machine

entered

roller chain and sprocket field by acquiring

Diamond Chain Company, Inc., and
and

railroad

90% of the company's volume; but

hydraulic machinery business, it has

and

the precision

the field of coating

wrapping steel pipe for the gas and oil industries by

acquiring Pipe Line Service Corporation.
Our

diversification

moves

have

-

.

provided

*
a

degree of

stability that did not exist when the company's business
so

to the

the

dependent upon the volume of purchases by
Recently the Board of Directors, in

addition

regular quarterly cash dividend of 60 cents,
five percent stock

de¬

dividend as tangible evidence

clared

a

of the

company's diversification and growth

in the past

few years.
-

merce

subsidies, if

of 75,000 new freight cars each year
At current prices these

.

emergency..

Therefore, it would seem to be
convince the

will be delivered to the railroads in
estimated that the railroads will re¬

cost

as

10 years.

Prior

was

of

would

past

tool

indispensable to the
country, in that they are the only form

case

been

average

much

place.

„

longer exist.

military organizations that

cars

has

retired faster than

' "

the Korean conflict must have

future,, the

the

scheduled for fall

be

personnel, both in this country and

World War II and

which

65,000
It
.an

as

antiquated regula¬
forced to do business. Actu¬

performance

outstanding

backlog of about 130,000 cars to be built.
these cars can be built will depend

a

at

the availability of steel, but it would appear that

cars

Arthur E. Heimbach

Nevertheless much more could

was

rate

for at least the next five years.

they should be given a fair share of Government business,




r

$6,709,522,

70%
higher. However, the volume of rail-

quire

Approval has been given by the Interstate Com¬

segments

period

same

1956.

tions.

under

C. JARCHOW

on

June

ments of railroad

about

accomplished if steps were taken to
relieve the railroads from the present

pur—1

and unprofitable service is being eliminated wherever
possible: A consolidation of operating divisions in Texas
is scheduled for early September, giving the entire sys¬
tem
but
two
major operating divisions. Studies are
underway for modernizing yards so as to speed opera¬

able

share,

per

ended

railroads;

consolidations

our potato grow¬
failure. *

sales of $89,926,007 in the nine
This is a record for nine
months in net income, also for regular product sales.
The volume of shipments in nearly
all product lines was higher in the
nine months just ended than it was

or

months

upon

ating efficiency without jeopardizing
the
marvelous
safety, record they
have established.

ments in the

train

crop

American Steel Foundries had net income of

there

improving

are

ally most of us realize that the

of equipment.

$500,000 worth

775

CHARLES

"

/

first six months

about this legislation no

The Katy also has been engaged

repair

major

a

The

for

been

a

tions under which they are

right-of-way and equip¬
ment have been expanded for the year and right-of-way
maintenance

suffereid

President, American Steel Foundries

moderniz¬

electronics, where justified, and
developing new tools for the rail¬
roads to further increase their oper¬

throughout the country;
programs

never

The steel strike has made it diffi¬

of

being augmented and seven new off-line
agencies have been established at potentially good

Maintenance

have

tially.' In the 1955 fiscal year there were only 31,000 new
freight cars delivered to the railroads. On July 1, 1956,

our

are

locations

L; As

We

the Katy is engaged in to rebuild its plant i
and expand its services to shippers.
!
Train
performance is
being
bettered
and freight
schedules improved.
New segments of the system are
being utilized for piggy-back service. Sales department
sales

practically stable commodities and

year.

program

forces

ers

are

the first is not too unstable since

cult to forecast the rate of operations

D. V. Fraser

than those of 1954, and the same pattern is developing
for 1956, based on results for the first six months. The
that

Aroostook.

of the year
has
been "very
satisfactory^ and
should continue to be well into next

locating new industries along its
right-of-way and a revxtax^mg of its sales efforts
throughout the country.
Katy's gross revenues for 1955 were modestly higher

fact

The last three
even

Signal Company

general.
V
...
result our volume of business

for the

being partly

vigorous

,

proper

effect worth noting on our freight
overwhelming percentage of our tonnage is in potatoes,
paper, pulpwood and petroleum products.

ing signaling in

The

offset

:■

Neither had any
revenues since
an

with the finances at

yard automation, and

with

ahead.

traffic

it.

bile output and the recent steel strike.

progressive railroad managers

The

all that is possible

duction and this augurs well for the

nation's

1956 to equal

understanding of this
relatively optimfoe forecast, I should
f point out that some economic factors
% which sharply affect a substantial
portion of the railroad industry do

Hutchins

M.

expect

not affect the Bangor and

of today are doing
hand to improve
their operations and reduce expenses by consolidating
interlockings, installing centralized traffic control, con¬
structing modern classification yards

sustain

by digging into inven¬
All, however, should be good

customers

do expect, by normal stand¬

Two pertinent examples are the reduction in automo¬

prices develops, it seems

Railway

President, General

'

.*

operations
tories.

not

we

For

E. HEIMBACH

ARTHUR

of the

supplies,

of

ran out
permitted

do

ards, that July-December, 1856, will
be most satisfactory.
•
v

-

harder, per¬

some users

un¬

"

other industry by the

any

steel strike.

hit

were

con-

But

to buy

railroads be given greater freedom
in establishing rates which are competitive with other;
forms of transportation, and ,freedom to adjust rates,
without delays, to meet changing costs and conditions..

Except for the steel industry itself,

the

operate to

we

Because of

We

..

spiral in wages and

sufficiently knit

outlook with

own

"

imperative that the

of this year.

industry generally for the balance

new

a

are

in which

ritory, our business for the last six
months of 1955 was abnormally good.

;

year

'.

we

our

usual conditions peculiar to our ter¬

high in earnings in 1956.
of

area

siderable confidence.

Other factors favorable to good business for the rest
C&O net for the first seven
of 1956 are the probable pick-up in
the automobile:,
equaled $35,500,000, or $4.42 per
market when,new models are introduced, continued ac¬
common share, which is 460 per share above the previous
record for the period established in 1955, even though * tivity
in industrial construction, the projected road
July revenues this year were reduced below expectations
building programs, and rising farm prices.
by the nation-wide steel shutdown. With the restoration
Perhaps the most disturbing note in the economy is
of merchandise and coal traffic to pre-strike levels, and
the new inflationary trend brought about by wage in¬
with the vigorous and growing demand for coal at home
creases which will continue over a three-year period in
and abroad, C&O looks for capacity business for the bal¬
the steel industry.
Already, there have been advances
ance of 1956 to make this year the best in our 171 years
in the prices of finished steel and steel products to meet
in the transportation industry. ;
the increased
production costs.
Other industries are
D. V. FRASER
C
certain to face a new round of wage demands.
President, Missouri-Kansas-Texas Railroad v--v
Company V*frh \
&
new

months

However,

forecast

although it is not yet
known what direct and indirect effects the idleness in
the steel industry might have had on this upward trend

$58,000,000, or $7.25

1955, with a total of

,.

{to the

than they were a year ago,

now

traffic.

in both coal and merchandise

,

in a better position

impossibility for an offi¬
geographic location and traffic

It is difficult to the point of
cial of

Felix S. Hales
that business will approach the pre; '
1956 through 1960. Our Chesa¬
strike level are various factors. In¬
peake and Ohio Railway alone antic¬
creases in personal income and individual savings in the v
ipates an outlay of $561,000,000 dur- ;
first half of this year indicate a higher buying potential. «
ing this five-year period, to maintain
While consumer spending rose in the first half, it did/
our
position as the world's largest
not match the rise in
personal income. This would
carrier of bituminous coal and to

are

;
V'-w-oS

Railroad Company

Aroostook

years

indicate that consumers

M. HUTCHINS

CURTIS

corresponding period of 1955. „
%
Contributing
to -'the : confidence

growth

an

;

„

President and Chairman, Bangor and

•/."M-

month a year
ago, "pulling the percentage of in¬
crease
in
the
first seven months
down to
5.7% compared " with the :*

have

keep pace with the constant

-

pared with the same

transportation.
; • '•••
^
v
v
The confidence of the railroads in
their own future is evidenced by the

the duties that will

by the military if and when

them

emergency occurs.

in July, 1956, -

declined

railroads.

improve the physical plant of the

to

.

strike.
During the first six months of 1956—
all prior to the shut-down in steel

Railway

be

mini¬

optimism in no way
mizes the major effects of the

Chairman, The Chesapeake and Ohio

The

be used

This

EATON

S.

that a large proportion of any in¬
resulting from the above actions, would

This would enable them to perform

prospects for the

reborn in the railroad
settlement of the month-long
was

year

the

after

Road
Louis

Chicago & St.

business

in

Confidence

best

serve

,

Thursday, August 16, 1956

doubt

no

creased revenue,

President, Nickel Plate

.,

suits in unnecessarily

is

there

IIALES

S.

F.

Continued

'

.

Outlook for the Industry

Railroad Executives Discuss

\

..

(700)

With

the

backlog

of

orders

products and the prospects for
part, coupled with the
ments

of

our

on

hand for railroad

continued buying on their

favorable outlook for those seg¬
devoted to other than

business which are

railroad products, our

business future looks good for the
Continued

on

page

26

(701)

Four With FIF

Public

Utility Securities

LOS

C.

the Communications
Companies

American Tel. & Tel.
announced
weeks ago that it would

of

several
offer
one

stockholders

rights to buy
share for each ten shares

new

date

has not yet been
(it
will
probably

around

the largest indepen¬
system, has been growing
even more
rapidly than the Bell
System because of its policy of

-Sept.

holders'

to

10-14).

vote

Sept.

5

has

A

been

authorize

be

acquiring

for

increase

in the number of shares from
60
million to 100 million. The offer¬

ing, .which will not be under¬
written, will make available about
$575 million cash to the Bell Sys¬

tem for

its construction

since

utilizing

the

program.

System,

depreciation

after

internal

cash, must raise about
$100 million each month through
bank

loans

A.T.&T.

$250

sale

or

had

convertible

tures, and late last

a

or

1955

37/gs

either sell

of

1967

convert

or

should

will

lose

the

value

rights—which, based
rent

price

of

the

of

the

on

stock

or
the

number

of

Gross

but

higher cost of conresulting from postwar
inflation, has jumped from $5.7
million to $15.3 million. With con¬
tinuing growth it looks as though
Bell will

lyear

need

from

Ithirds

of

here

must

come

one-third debt and twostock (with a neg-

|ligible amount of preferred stock)
of course this is somewhat
Iflexible.
|but

In

)f

last

the

the

so, in view
Bell earnings,

year

increase

or

in

|there has been some criticism of
|the company's failure to raise the
i>9 dividend rate, fixed since 1922
lespite the fact that rights have
offered seven times in the
>ast

decade, which if sold would
|have added about $1.50 per annum
the

lew

dividend.

rights,

proposed
be much

which will

valuable

lore

The

than

those

offered

subscriptions in re¬
cent years, may be intended to
lollify stockholders anxious for a
"split" or a higher dividend rate.
sidiaries
rhich
lese

same

larent

lo

six

are

in

the

the

regional

System in
holds
stock,

companies follow much the
financing methods as the
company, except that they
issue

not

convertible

common

stock

rule.

a

as

these companies

are now

Telegraph

(69%
about

imerican)

Telephone

&

controlled

by

month

a

fore

the
year

ported,
$1.00.

5100

in

the

of

ratio

record

of

29.

:

irch

in

the

31, and

12

months

pays

$8.

Pacific Telephone

[91%

controlled

ith annual

&

by A.

revenues

\

ended

&

T.),

of $715 mil¬

lion, is currently planning to sell
178 million
debentures, and to
)ffer shareholders
1,562,267 shares




&

Co.,

merce

Inc.,

with

BIRMINGHAM, Ala. —Luna,
Ma-

King Merritt

Chamber

of

Com-

Building.

Matthews

&

Waites

has

recently

Nelson Building to engage in the
securities business.

went

biennial

battle

unions, which

re¬

been reduced to

FCC

gives its decision.
$2.10 a share was re¬
the dividend rate is
-

.

T.

ANGELES, Calif.—Edward

Cronin

has

formed

Edward

T.

Cronin

Company with offices at
South Soring Street to
engage

548

in

securities

a

business.

Officers

Edward T.

are

Cronin," President,
and Vernon Pf Gray, Vice-Presi¬
dent, Treasurer and Secretary. Mr.
Cronin
was
previously
Dempsey-Tegeler & Co.

Form Empire
Empire
been

formed

Seventh

with

Corp.

offices

S.

He

formerly with
Corporation.

vestors

'HEN

at

Jeremias

is

570

freight

Citico Yard at

President.

First

a

even

In¬

is

With Samuel B. Franklin
(Soecial to The Financial Chronicle)

Samuel

Bolton

B.

Crocker

is

Franklin

now

&

car

others. Then
an
"

LOS

ANGELES, Calif.—Edward
Donn, Raymond J. Elledge and

S.

Krevitz

Jamieson

with

are

Co., Inc.,

H.

L.

6399 Wilshire

Boulevard.

rolling,

instantly picks

-

a

radar

up

and

the magic brain of

electronic computer regulates

the retarder
under the

brake

moving

in
car

will couple safely and
another

car

This is

a new

You'll

see

ways

on

at

kind of railroading.

it at work in countless

the

Southern

Citico, and in

our

today

—

other multi-

million dollar push-button yards at

reliability—weight,
speed, size, wind, weather and

Three
'

is

that affect its

Building.

(Special to The Financial Chronicle)

car

evaluates all the many factors

with

Company,

Jamieson Adds

Chattanooga, Tenn.

automatically measured.

device

SAN FRANCISCO. Calif.—Nor¬

W.

rolls down

the wind resistance of the

While the

man

car

the "hump" at our new $14 million

has

Avenue, New York City.

Gerald
was

with

Plan'g Corp.

Planning

the track

Knoxville, Tenn. and Birmingham,
Ala. And still another ultra-modern

electronic yard to cost $15 million
is

now

under

construction

at

Atlanta, Ga.
Yesteryear railroading is "gone
with the wind"

on

the Southern.

Today's modern railroading

means

that it

dependable, ever-improving trans¬

gently to

portation for the fast-growing

so

standing far down in

area we serve.

the yard below.

R.

Victor Reid

R. Victor

Reid, Manager of the
trading department of Eisele &
King, Libaire,[ Stout & Co., and

President

well known in financial circles for
He

was

died

52

Mr. Reid

over

years
was

a

Security
City.

the week-end.

old.

:

member pf the
of New York

Traders
Prior to his association with

Eisele & King
Affiliates.
-

he

was

with York

been

formed with offices in the Frank

and

32 years,

_

Telegraph
T.

&

Company, 215 West Seventh St.

now

S.

(Special to The Financial Chronicle)

LOS

to

The

impany has annual revenues of
ibout $285 million. It earned $8.89

share

Franklin

gruder is

Albert

1.45*

ago

l-for-5

Aug.

B.

the

—

Forms E. T. Cronin Co.
•\'r

iroposed to offer 613,000 shares at
lolders

Samuel

to

MIAMI, Fla.

1.17*

usual

labor

Last

Nate

England

of

added

M.

1.77* :

10.43

Union

:

its

the

■

of

planning

to offer stock.
New

I

now

new

Two

staff

been

Jon

It appears likely that
some little delay be¬

deben¬

tures, but give rights only to

Oliver, have

&nd

Luna> Matthews & Waites

(Special to The Financial Chronicle)

1.84*

v

$9.7 million.

sub¬

Bell

public

:

__________

Eor debenture

There

Mendel

With King Merritt

Jones,

'

plication has

Ibeen

to

11.42

there will be

twofrom

company is :ento make system capital

common

J.

A.

a

The

Ideavoring

(structure

billion

nearly

on,

which

(securities.

Ithirds

about $2

Myron

Lloyd

$15 million per annum. - The com¬
pany sought an offsetting rate in¬
crease of $11.4 million but this
ap¬

growth

the

also

ANGELES, Calif.—R. Tru¬
Dawes,

sulted in wage increases of about

investment,

struction

LOS
man

General

Telephone

11.32-

Western

telephones! in

plant

Secretary.

(Special to The Financial Chronicle)

building,

11.00-':

with

than doubled in the postwar

period.

securities business.
L. Copley,

William

$12.50 * * $2.90
12;27->\
2.63

___

through

around

[service in the Bell System has
[reflecting not merely this

Investment

are

:t*Adjusted for stock splits, etc. *

cur¬

184, would be worth about $7.63,
per $1,000 bond.
The

(Est.)

1951

|or $76.30

more

Markis

Bankers.

Samuel Franklin Adds

Officers

President; Joyce M. Copley,
Treasurer; and Diana L. Weir,

structures.

Tel. & Tel."

-

.

1953

days before

[the record date of the rights,

.

.

.

their bonds.*■ 1952

at least four business

old

American
•

Feb. 1. Holders of the Convertible:. 1954

they

factory
14

some

'■

1956

Debenture

with

previ¬

was

'

one instalment
the rights expire)

instalments, Nov. 5 and

in two

Johnson

companies have been as
follows in recent years, as
report¬
ed by Standard & Poor's:

Stockholders will be given their

(after

Mr.

phone

convertibles.

5

Street.

record

[choice of paying in
Nov.

M. Kidder &; Co.. 139 East
Flagler

.FIF

Corporation.

The comparative share
earnings
of the two leading tele¬

sold

deben¬

sold $634

year

modern

new

replacing

securities.

only .recently

million

| million

of

Patrick

with

SPRINGS, Colo.—

Copley & Co. has been formed
with offices in the
Burns Building
to engage in a

sulting operating economies. The
large telephone equipment manu¬
facturing company formerly con¬
trolled by Gary, Automatic Elec¬
tric of Chicago, is to be housed in

other

and

L.

I? as become affiliated with A.

son

COLORADO

.

this will take care "of
about six months' require¬

ments

John

affiliated

John

H. John¬

This should permit closer coordin¬
ation of the two Systems with re¬

However,
I only

other

independents.
Some time ago it acquired Theo.
Gary &
Company,
and
Gary's
principal
telephone
subsidiary
Continental
Telephone
was
re¬
cently merged
into
General
through an exchange of stock.

stock¬

called

an

Day,

MIAMI, Fla.—Franklin

...

dent

an¬

become

W.

C. P.

—

Copley & Co. Opens

(Special to The Financial Chronicle)

ously
l-for-6

a

controlling

held at $100 per share. The
rights
be mailed Oct.
1, but the

record

on

■

•

and

Management

General Telephone Corporation,

will

nounced

stock

common

basis.

Rowland

Miller

have
on

ANGELES, Calif.

Averett,

By OWEN ELY

Notes

Joins A. M. Kidder

(Special to The Financial Chronicle)

25

SOUTHERN RAILWAY SYSTEM
WASHINGTON. D. C

The Southern Serves the South

Financial Chronicle

The Commercial and

26

Industry

Railroad Executives Discuss Outlook lor the
Continued from page

24

A

The various ingredients that now exist in
segments of business and industry will contribute
growing and healthy economy for the future.

most

year.

W.

to a

not

1956 would exceed
well
as that of many other companies, has
been adversely affected by the ex¬

those realized in

Now that these particu¬

and taxes, our net will

expenses

million for 1955.
in

The large increases

payroll taxes im¬

costs and

wage

year ■:

A.

upon us the latter part of 1955
taking a larger part of revenues
than last since the increase in freight rates al¬

this year

by the Interstate Commerce Commission has not

lowed

sufficient to

been

It

tion.

have

is

offset those increased

that

significant

refused

the steel companies

the possibility of a retroactive settlement

to consider

the wage demands on
15 days,

as

costs of opera¬

them,

for

even

as

short

period

a

because of the resulting inability to

the increased costs through increases in prices.

of

recover

The rail¬

roads have been and continue to be confronted with

non-

periods for increased wage and other costs for
long a period as a year or a year and a half. Users of
the railroads should be interested and concerned in keep¬
recovery
as

ing them financially strong and should, therefore, help
us in
shortening these lag periods as much as possible.
The result of the settlement of the steel strike

of the country remains to be

economy

on

the

The large

seen.

increases in wage rates in that

industry and the immedi¬
prices clearly will have inflationary
effects. The economy of our country can progress only
through increased productivity. It is increased produc¬
tivity which adds dollars that have increased-purchasing"
power. To safeguard against inflation requires the joint

ate increase in steel

of

efforts

labor

and

industry to

the inherent
Proposals by labor
which add to costs must be held temperate; considera¬
tion of these proposals should embrace extreme analysis
strength

of

and careful

our

business

judgment

on

preserve

system.

the part of industry.

McCLURE

in

Corporation

the Lima Locomotive

the steam

diesel'electrics

to

change

and

hence

Both

to

field

and

after

at

was

study

of,

Baldwin

-

Lima

achieved

through

savings
a

light

steel

hopper

box

cars,

.

and

of this

association

new

have

and Lima

in

F.

KNEEN

which
ice.

are

programs

due in part to the fact
roads
new

holding

are

In

has

be

is

weight,
Keiiey

locomotives

the problem of all railroads

in

for

and,

the

six

last

the

weeks

attractive

medium

reduce losses in
.

to

maintenance
the

passenger

railroads

cost,
in

prove

their

a

revenue

It

this

the

H.

obtained
same

Kneen

F.

equipment

grams,

of
on

gives

Since Jan.

a

-

in

^

1.9% increase

period in 1955 and

the

total

5%

fare

operating

a

Our business did not sl^
compared with last year until the mont
July. On the basis of cars handled, we were 5% of
July of 1956 as compared with the same months c

Company,
of

the

not

There

is

will be started and will continue

sider

that

it

will

panies had
and

1958, and

pow ^ a

railroad

our

our

future.

wholly-owned subsidiary, our

track

scale

market

has

the

tnat

been

increased

We

with

steel
a

themselves

,

large

continue

to

picked

acquisition of The Howe

our

actual gross revenue

question but that the steel strike

no

business

conditioning,

have

July, it is possible that the precentag
of decrease will be somewhat greater than that reveale
by car account and may run as much as 8% to 10^
below July of last year.

up

be

to

of

our

lines

but

do

we

major consequence.

cause

not

con

Most com

inventories and they were permitte
their operations during
the perio
were shut down.
There, of cours<

mills

great

number

of

shipments from the mil;
b

that have been lost but possibly this can

during the third and fourth quarters.
the revenue for the third quarter wi

feel -that

possibly be below the third quarter of last year but w
are
looking forward to a good fourth quarter;
It
our

opinion that

and, with expanding freight handling facilities, this mar¬

with about the

ket

we

will wind

up

by the end of this

yes

1955.

is

to this problem.

expected

years.

,

to grow

during the next tw'o or three

apparatus are 26% higher than for the first half of

well into next year.

and

For the first half of this year our

our

backlog is 16% higher.

same

gross revenues

that

we

had durin

the last three years, has bee
relieving the -national car shortag<
-By the end of next year we will have purchased an
The Cotton Belt, during

,

Other divisions of the company are booked up heavily
in the railroad field on wheels, axles and railroad ma¬
chinery and equipment and we anticipate this market

~

do

we

for the month of

in

bright prospect for

share

While

1955.

as

loss

air

monthSj of thi

the first six

period last year.

some

lighting
such programs, together with the fairly

1,

finished

Belt

that by the fourth quarter of this year

electrical,

Scale

seri¬

»r* '

decrease

has

|




same

any

of
;

Southwestern Railway Lines

with gross revenues exceeding 7% of the gross fo

the
*

H.

additional

an

period

w* G' M,ller

McKENZIE

J.

St. Louis

The Cotton

.

year

steady rriarket of renewal parts and modernization pro¬

advantage of light weight is available, it should be most
appealing. If this proves so there should be an urgent
Remand as all the railroads are considering
very

sale

us

growth.

steady

increased 9.5% over 1955.

is expected

The

Lima-Hamilton thinks that this advanced
engineeringstep
should open up an
entirely new field of more economical
motive power and in passenger service where the added

answer

have

participating

are

we

assures

President,

through 1957, possibly into 1958.

traffic.

livered to the New York Central and is
proving its worth
and at the present time two other locomotives are about
to be delivered to the New Havert railroad.
Baldwin-

an

they
During

same

locomotive

with the foregoing enables us to
of

picture

the

present

is also achieving excellent results and this couplec
look forward to a perioc

gram

I railroads had

over

passenger car programs

to

Baldwin-Lima-Hamilton's first prototype has.been de¬

ously

then

increase.

very

efforts

passenger revenue

the

of a continued
high level of activity.
Our expanding diversification pro¬

considerably. There
renewed activity in subway

now

in which

broadly,

lightweight trains.

new

that

electric

possible

any

oper¬

.

are

purchases should continue for some
time. This, coupled with the capital '
expansion going on in this country

that the rail¬

up

opportunity to

an

diesel

of

rate

brightened

since

locomotive, with its head¬
heating, lighting and air-condition¬
ing, can be coupled with light weight cars at a low per
seat price and with particular
advantages of both lower
lower

is

large extent by

a

efficiently.

Indications

f and

and

faced with large losses in their passenger serv¬

and

to

affairs

of

state

until they are able to

programs

evaluate the

The new Mec-Hydro type

costs

ate

reason,
future prospects looked
rather dim. We assume that this is

end power for train

fuel

v-

excellent

stability but

1955, it consisted mainly of equipment for active main¬
programs and there was no .'.."'.S *- ~v

months of this year, Class

answer

Locomotive

Montreal

recent steel strike

'

us.

brought about

Safety Industries, Inc.

sion connected directly to the driving

especially does it

that

are

cooperation of the Canadian rail¬
in their programmed buying,
which not only gives our industry

axles. This has features desirable
and

•

highly successful year—temperee
that we do not know as yet the

the

equipment

all type

a

reservation

This

very

have

effect of the

upon

lack of prospects for any sizable new

McClure

will

the

by
full

tenance

"

ap¬

on

been

indications

Present

Works

commuter-type cars which are
usually purchased in large quantities.
Furthermore, during the first five

,

hundred

one

*

cars.

equipment for major car building
or
remodeling programs. Moreover,
there appeared to be a significant

moderate ^peed diesel engine coupled
to a hydraulic-mechanical transmis-

MILLER

G.

W.

President, Montreal Locomotive Works, Ltd.

it represented a significant increase over the same period

ar¬

can

We expect to com¬

relay of branch lines will be carried over into next year.;

re-,

incoming business in railroad equipment for the
first two quarters of 1956 was reasonably steady. While

there

Hamilton's

-

the company's track program.

on

plete all of our scheduled main line track relay, but some

Our

approach to locomotive
than diesel electrics.
'

proach is that great
*

that

felt

gratifying.

permitted

thorough

conclusion

50-ton

results

the

and

better

a

power

the

cars

ect, which will be carried over into 1957, will be followec
by the construction of 200 ore cars and an additional
500 box cars.
Effects of the steel strike are also beir.j

Patronage of the five daily passenger trains in each
direction, known as the Overland Streamliners, jointly
operated with the Union Pacific and Southern Pacific
railroads, since Oct. 30, 1955, continues to be very good,

view of the locomotive

rived

box

'

thousand

70-ton covered

change, were not entirely satisfac¬
tory. Hence, present management de?
termined some .time ago to take an
new

diesel units or¬
the builder. A two-montl

building program was
by the recent steel strike. Construction ^of 50C
is now slated to begin about Nov. 1. This proj¬

caused

expansion of irrigation in that area. Delivery has
locomotives, one hundred

one

move
into their place and
results, after they did make the

entirely

units are bein*

delay in the railway's freight car

frigerators, and fifty, 50-ton insulated steel box compartmentizer cars. Other units on order include 100 steel
cabooses, fifty 50-ton Airslide steel covered hopper cars,

others to
the

expenditure of more than $32,000,000, an]
$4,000,000 over 1955. Purchase orders for ne\

an

dered have been delivered by

been made of 44 Diesel-electric

fifty 70-ton mechanical

for

passenger t ears and diesel locomotive
filled on schedule. Nearly all of the 79

the Columbia River basin which continues to grow with

cars,

improvements program!

Northern Pacific's 1956 capital
calls

increase of

The new modern automatic retarder yard at
St. Paul, Minn., costing $4,700,000, is nearing completion.
The yard at Council Bluffs, Iowa, has been enlarged
and improved to provide for anticipated additional traffic
through the Omaha gateway. A new freight yard with a
60-car icing platform is being constructed at Othello,
Wash., to expedite the handling of traffic from and to

President,

merger

Baldwin

the*

,

porary.

covered hopper

beets, soybeans, corn and]

large acreage of potatoes, sugar
dry beans. - •
'

unions

roads

Works, both long preeminent

locomotive field.

reluctant

were

the

of

some

which is thought to be only tem¬

in the first six months,

H.

a

and

groups

The possibility of seeking another increase

freight rates is being considered.

Corporation
is

of
in

<

other companies, the Baldwin Locomotive Works

among

and

carrier

between

begun.

steel

Washington orchards with injury to fruit]
berries. Offsetting, at least in part, some]
these potential traffic losses are substantial increases!
canned and frozen vegetables, especially peas, and a!

1955, damaged

equal to those of the

Our improvement budget for this year has not been
curtailed because of lesser net income than expected

the

14%f

in early November J

trees, fruits and

KELLEY

President, Baldwin-Lima-Hamilton
Baldwin-Lima-Hamilton

in

some-l
which|

prices

average

pie, is expected to be about 13 to

JL955^;-vS

tions

lower

last year.-A freeze

of

that

below

Most rail unions in recent weeks have filed demands
another round of wage hikes and national negotia¬

are

Johnston

during the first six months]
the same period last year.
in the volume of farm I

prevailed for some commodities.
Output of farm products in NPj
territory is expected to be below]
1955, an above-average crop year.
Production of 1956 grain, for
exam-jj

Robert S. Mac farlane

for

posed

Wayne

states

slightly

...

ing months of 1956, which with the
crop movements will provide annual

earnings for our company about

the

increase

what

throughout the nation in the remain¬
P. Kiley

in

were

products sold made up for the

affected, I believe we can look
forward to higher industrial activity
John

NP

the

by

in

than
An

were

Af¬

only slightly less than the $26%

higher

railroad to the extent other railroads

ously appeared, again are believed to
be very good.
We are expecting our revenues be¬
fore expenses and taxes to substan¬

be

freight rate increase

steel strike which did not affect our

for the year, though slightly
not as promising as they had previ¬

ter

served

March 7, 1956, to

marketing

farm

from

in

also by the fail¬

cash

reports,

Agriculture

With the recent termination of the'

pects

of
receipts

According to U. S. Department

six months

decrease

progressing at a healthy rate.

west

offset the higher
wage and other costs that took effect
during the latter part of 1955. ^ i'V

lar situations are behind us, our pros¬

tially exceed those of last year.

the

by

6%

the

of

ure
on

tended coal miners' vacation and the
steel strike.

affected

was

traffic volume and

Since then, our business, as

1955.

in the Northwest and

4

Net income for the first

continues j

with industrial development
Pacific North¬

to grow,

•

.

our

and income for the year

our revenues

into the second half.

of Northern Pacific territory

economy

the area served by

storage grain in
railroad.

early part of this year, our studies of the busi¬
outlook for the Illinois Central indicated that both

In the
ness

The

high level
the first halij

activity, which existed during

business

of 1956, to carry over
'

Railroad

President, Illinois Central

of

expected increase in volume of freight traffic did
materialize in the first six months of 1956, princi¬

An

Railway expects the

Northern Pacific

The

'

pally because of the slackening of sales and production
of agricultural implements and automobiles and to dev
crease
in
government releases of

I

JOHNSTON

A.

•;VRailroad Company

Railway

President, Northern Pacific

and Pacific

President, Chicago, Milwaukee, St. Paul

well into the succeeding fiscal

balance of the current and

MACFARLANE

S.

ROBERT

KILEY

P.

JOHN

;

195S

Thursday, August 16,

...

(702)

bookings on railway

-

1955,

doing

its

part

in

'

V

Continued

on

page

2

Volume 184

Number 5560

.

.

.

The Commercial and Financial
Chronicle

(703)

Continued from
first'page

p* t-4 *,<>

y

5%,

*

.>1 Suez

r

arevJ;hosq&ajni,wha »i>w*, doubtless

wish

As ■ TPe See It
doubtless any other administration

—except
In

2.

facts

will^j^eep

open to

the

event

of

major

imagine, determine

any

that Britain

and

waterway subject to
incendiaries

France do

the

whims

not

and

leave

to

/
in

that

one

the

I
».'■

a

moment

afford

to

no

matter

whht

within their

these

foreigners

Arab

world

have

situations
a

that

as

now

do, it

to

case

vital bearing upon our
impulses may be and
our
generosity may reach, it must be clear
the day-dreamers that we in the
very nature of
do but little to

can

Colo. — Stanley D,
Gardenswartz is now with Green¬

berg, Strong & Co., First National
Bank

our

knows

those other
attract

DENVER,

things which

can

reasonably be expected to

Colo.

—

Rogers Adds

;

of

Rogers & Co

>

Kittredge Build•;

•

leading

It pays to

hope that some peaceful and fully satisfactory mode of
handling this situation will sooner or later be found and
applied. We can only hope that the Kremlin will not

Ship and Travel

choose to

exploit the impasse to the fullest, and that India,
champion of all those who wish to break the chains of
empire, will use. her influence in a constructive
way.
a

;

There

are,

-Y- i

Santa Fe all the way!

things in this world that need to be
mended or altered, but the world did not reach its
present
status in a day, and time will be
required to effect im¬
portant changes in it if great destruction is to be avoided.
These

many;

are

some

of the

problems which

we

hope

are

£ today being, pondered by the so-called great
powers'JbfKj
the world. These are the considerations which we
can
only
hope will govern them all, including the Kremlin. But
what of the Arabs and the other

^
ii> > ?

•»,

peoples who feel them¬

selves

J

deeply aggrieved by colonialism? Are there not
aspects of this situation which should give them pause in
their headlong race for freedom to do as
they please not
only with what nature gave them but with various other :
forms, of wealth which they would not
today have but for
-these- same
foreign peoples whom they regard as oppres¬
sors? Tt; is foreign
capital-which is taking oil and other valuables from the
depths of the earth in backward lands
and converting them into
something which can serve man¬
kind.-It

is

'

which

was

the

accumulated wealth of Western
peoples
responsible for the Suez Canal in the first place.

It may be
very well
be .told that much
Jof all

ownership by virtue of exploitation in the past, that
foreigners now get more than the lion's share of the wealththat is being created from their raw
resources, and much
more of the same sort. It
may be that the terms under
which these projects are
being operated in some instances
really ought to be revised and liberalized. The fact re¬
mains, though, that foreign capital is in these regions only because it can get a better return than it can find else-*
where—or thinks it can—and in the absence of such
incentive further capital contributions are not

;

•

■

for these backward peoples to
this wealth is now in foreign

.

<

an

likely. Na¬
facilities,
but they can not
always operate them profitably without
foreign help—as repeated experience has shown.
tive firebrands

All,

can

seize oil refineries and canal

virtually all, the peoples have other resources
they presumably want to develop. They or their
spokesmen are constantly shouting about improving their

Si, si, si, chico! It's

>

economic processes

and bringing their people from their

-present backward state to
able

existence.-This

themselves in the

course

the fruits of what

some

semblance of

a

comfort¬

of

time,

a very

long time,

they

are

doing and

a

if

assum¬

a very

considerable

goods and services. The fact remains, however, that

they to achieve it in this

not

and

way

it would be almost

quite without historical precedent,

dependable to

railroad
is the
one

•

.

.

use

only

one

and Santa Fe

only railroad under

management

linking

long period of

aptitude for the techniques of production and distribution

were

convenient

-

conceivably they could achieve for

ing willingness to deprive themselves for

of

more

or

that

and

Chicago, California,
Colorado, Texas, and

points in the busy southwest.

91

certainly

would be the hard way.
These

are

some

of

the

considerations

which

Egyptians!, the other Arab countries and various
called backward
are

tempted to

leader

other

the
so-

peoples should bear in mind when they
into such dramatics as the Egyptian

go

indulged in the other day when he "seized" the




SANTA FE SYSTEM LINES
Serving the West and Southwest

to Staff

(Special to The Financial Chronicle)

ing.

parties in this country, and Britain and France have faced
many such crises in their long history. It is our ardent

■

R.

has
joined the staff of
Hamilton Management
Corpora¬
tion, 445 Grant Street.

What the solution
is, we shall, of course, not under¬
There are able men in both of the

take to say.

George

Kirwan

improve the condition of the

capital.

Managem't

(Special to The Financial
Chronicle)

they do not keep their
word, respect property rights within their lands or do

they may undertake to do next should it prove pos¬
to defy
Britain,. France and perhaps the United
States without serious harm. About
equally hazardous,
considering the oil and other Western property in Arab
land as well as the Canal
itself, is to proceed with vigor
to put little
Egypt in its place.

Building.

With Hamilton

obtaining

very

programs. Whatever

(Special to The Financial
Chronicle)

DENVER,

land.

own

may

Greenberg Strong Adds

backward peoples of the world if

sible

•

the

even

intrigues of such

what

"foreign domination"

Obviously, too, such

give-away

as

^ has evidently aroused them to fever
pitch. No

for

can

whatever limits

Nasser.. Then there is the
question of the
behavior of the other Arab lands. The
Egyptian firebrand

„

them

is the natives who will be the
chief sufferers.

war

wish

of

overlook in the heat and ardor of their
struggle

or

Otherwise,

happened
and that
quite regardless of prior arrangements. But what
of the Canal in
ordinary times? It is certainly understand-,
able

none

to be rid of

certainly any
would, we
to the Suez Canal,

what

which

forget

all

our enemies in times of war.

conflict,
world-wide conflict, the
exigencies of that
.'

they had considered them carefully before they went
off the deep end some years
ago. They are some of the

27

Wj

Financial Chronicle

The Commercial and
23

and double units in duplex arrangement|. Each
unit provides
a
specially-designed coach room with
comfortable arm-rest window seat by day, a comfort¬

in single

total of 3,500 new cars at a total
approximately $28 million. We have been co¬
operating with the shippers in obtaining the type of

obtained delivery on a

of

cost

that will be needed today and in the foreseeable
future. We have been fully dieselized for the last three
years and have
done much toward shortening freight
schedules, inaugurating additional service, and providing
the very best in the way of railway freight transpor¬
cars

tation.

sleeping at night—also a private toilet and
washstand plus space for luggage.
The charge for this
accommodation will be the coach fare plus a modest
able bed for

H.

ROBERT

HENRY S. MITCHELL

Atlantic

President, Duluth, South Shore and

of next year

ther

Railroad Company
At

back

by

between revenues and

Committee

rMOur

the railroad industry finds itself in a
which it is having difficulty in absorbing

mid-year

situation

in

half

v

wage

new

h

h

:

physical plant in per¬
forming its services and inevitably
this must be replaced either in kind
or
with improved facilities.
Con¬
tinual increases in cost in all phases
its

when coupled
unjustified restrictions and
now prevalent under
State and Federal regulations

do

Mitchell

S.

make

not

Kootri

n.

morse,

jr.

merchandise

dozen years,

Largely because of economies produced by ad¬
ministrative and technological improvements, 1956 on
the whole should be a reasonably good year despite the
losses of traffic from the steel strike.
thrive.

locomotive

our

railroad

we

have materially increased our ex¬

penditures for improving the physical property and are
planning to install train radio to further expedite our
service. As industrial activity regains momentum after
the termination of the steel strike, we expect to have at
least

as

good

a year

in 1956 as

H.

C.

had in 1955..

we

ter

than

Like

1955.

industry as a
confronted with the

the

for

•

of

and

new

our

;

1955.
ter

in¬

flat

is

It

cars.

expected

carrying

freight

on

Murphy

270

about

more

In addition

will

by

*

:

-

same

as

up over $6
1955., There

income

net

inois.
ency,

This

automatic electronic,

Two

all-new

Vista

Dome

through

cars

car

for

to

Colorado

cars

and

accommodations.
the first

coaches.

time

There

are

is

Denver

Zephyrs

Springs.

the

The

new

train

introducing thrifty

two




on

go

Chicago and Denver with
new

the latest in coach

In

will

cars

and

the

will

sleeping

Burlington

new

indication that

every

Pacific

the

Shop at Hollidaysburg, Pa., was completed and
ability to turn out 50 heavy repair

shop cars per day; the eastbound portion of the new yard
Conway, Pa., was placed in service and is improving

Slumber-

each train and each Slumber-

operation and producing the anticipated efficiencies
—although a major portion of the benefits will not be
until the entire yard is completed, which will

our

con¬

obtained

better than

would be

have

year,

strike

the first

been

be

million

'

/

months

$151

j

the first
million—

compared

with

down

panies having been reduced from 171 on Jan. 1, 1953, to

i

.

carried

was

to

107 at

present.

Modernization of

tinued throughout the year,

1955.

of

■

Jr Reflecting, the economies in oper¬
ation

through

bilitation

a

$342 million
undertaken

program

reha¬
dur¬

the

ratio

Southwest

during

which

last

the

figures

are

show

to

first

a

five

months

in

its

operating

period

(latest

for

of

with 77.9

available)—76.1 compared

of the

steel strike it

tion, resulting in
our

increase

an

a

is

regions

creases

and

competition
We

are

Interstate
vance,

in carloadings, that will

deeply

compensatory rate

concerned

Commerce

freight

rates

the

about

Commission

sufficiently

to

to

failure

offset

us

the

the

industry

must

ask

for

the

to

ad¬

recent

It seems

another advance

in

was

made effective Nov.

Superintendent's

divisions and three

replaced by nine somewhat autonomous re¬

a

complete staff and

headquarters.

The
-

has

been

a

Regional Manager,

who reports directly to

The functioning of the
most

satisfactory

and

new

the

railroad

or¬

results

industry is the backbone of transporta-

tion in this country, and, as such, is indispensable.
has been

of

and resolved. We contemplate

have fully justified this major change.

in¬

adjustments.

permit

were

ganization

with the inability to meet inland waterway

through

Nineteen

has

System

inability to

Emergency Board's increase in wages to labor.

likely

who

year-end business up to our forecast.

with corresponding rate

develop

difficulties which have been experienced

gions, each under the jurisdiction of

resumption in produc¬

Like all railroads MoPac is faced with the

("piggy¬

has continued to

plan of organization which

1, 1955.

belief that that industry and others affected by its
stoppage will see

required

are

transportation.

new

With the ending

not

TrucTrain

The outstanding development of the year has been the

year.

encouraging.

con¬

continued expansion and development of this new type

The outlook for the third and fourth quarters are very

bring

some

—but they have been net

reduction

which

tracks

the Pennsylvania

on

despite

P. J. Neff

and

facilities has

our

resulting in the abandonment

present-day diesel operation.

back")

,

in

facilities

many

with

ing the past ten years, Missouri Pa¬
cific was
the only major railroad

diesel

lightweight tubular
passenger train was purchased and is in service between
Washington and New York. .Additional mechanization
has permitted us to hold our track maintenance at a high
standard despite the increased cost of material and labor.
Likewise, our program for disposing of other property,
including real estate, which is not required for railroad
operation, has been continued. Simplification of the cor¬
porate structure has continued to re.ceive major attention, with the number of subsidiary and affiliated com-

our

y ;

for

during the coming winter; 74 additional new

units have been acquired, and a new

seriously

and

in

seven

^

quickly offset rising costs

availability.

car

into service this fall between

include dome

Cicero, Ill¬

facility will increase operating effici¬

new

and freight

effected

this period $8,105,000 compared with $6,541,135 in

recent work

a new

Many capital

other industries.

During the past year the Pennsylvania Railroad has
the following improvements: The new Samuel

con¬

during

my

increase of traffic.

Burlington is constructing

steel

totalled

velopment continues to expand in Burlington territory,

gravity-hump freight classification yard in

of

revenues

months

which

an

half

the

/

Operating
six

be

industries have Seen located and industrial de¬
in

expecting

NEFF

other /.industries

of

of 1955.

are

we

•

should result

With

Rea Car

J.

Missouri

first

the

in

the

.

cars.

New

good, they buy.

are

and

manufacturing

expenditures are desirable which will improve service
and operating efficiency, but these are dependent upon
satisfactory earnings.

forecasting continued prosperity,

1956 started with
the

on

strikes

of heavy shop repairs to 2,500

program

a

When times

relative position with

to earnings—which have not been satisfactory
for the railroad industry when compared with earnings
respect
in

territory.. July ended with loadings
for the first seven months just about

;

year.

forthcoming if we are to retain our

major road al¬

one

Carloadings, which were running almost 6%' bet¬

affected

the majority of which were box

completed by the end of the

a

business, too.

The year

production

cars,

which is

diesels,

older

Or there may open a mar¬

replacement, which

economy.

ditions

H. C.

;

of

upgrading

at

a

freight

the

on

P.

Burlington's car supply as a whole has been adequate,
while meeting the demand for box cars continues to be
a problem.
So far in 1956 the Burlington acquired about
600

completion.

President, Missouri Pacific Railroad Company

resulting from the steel strike
depressing effect on carloadings during the
aecond half, although there is some hope that this will
toe offset to a degree by late-season ore movements and
toy efforts to rebuild inventories. Generally the picture
is favorable through the remaining months of 1956.

.will have

techniques are being developed and will continue to be
developed—thereby offsetting some of the increased costs
—there is no question but that increased rates must be

The goal

Historically, the railroads have been tied to the state

In the case of the CB&Q individu¬
ally, the first half record shows freight revenue up 5.1%
the same period last year. Passenger revenue was
tip 5.17%.
Net income was 5.6% higher than for the

lost

railroads, is the inflationary tendency, as indicated
by the recent steel settlement. At the present time, the
railroads are confronted with major wage requests from

ready has undertaken.

over

The

confronting us, as well as

major problem

A

Newell

•

has demonstrated its

economy.

first half of ,1955;

James P.

property in proper condition
the traffic that will be

our

many

within 10%—approximately 2J00

was

ket for diesel

This is a brief illustration
exceptional
situation eonfronting the railroads in an other¬

expanding

years,

practically all of their employees—with decision expect¬
ed before the end of the year. While improved operating

—of

the

wise

business

five

efforts to hav¬

of complete .dieseJization <of
units

the railroads

dustry.

of

next
our

handle

available.

this

of

stock

take

and

over

directing

are

substan¬
continu¬

a

Where does the locomotive business
from there? Perhaps the answer is greater concen¬

with diesel units.

tinued good

proportionately greater increase in
operating costs compared with oper¬
ating revenues resulted in a slightly
income

back

sit

situation: As of June 1, our best estimates indicated that
90% of the nation's steam locomotives had been replaced

this increase in work performed, the

net

are

we

must

railroad equipment makers, naturally, are

whole, we are
increasing disparity between unit
■operating revenues and costs. Dur¬
ing the first half of 1956, the rail¬
road industry attained a 5.8% gain
in carloadings
over- 1955.
Despite

decreased

However,

most of the economists

railroad

the

the

and

be

general

in

volume

steadily, which is a unique
"feast or famine"
now at a point where loco¬

may

confident of

are

ing r increase

last

with the exception of the first half of 1954,
have been able to keep their pro¬

builders

which

of

tial—we

to

business.

for

—some

builders

substantial, potential market.

The prospects for the remainder of 1956, from
the
standpoint of the Chicago, Burlington & Quincy Rail¬
road, are for a reasonably favorable last half with
final results probably on a par with or slightly bet¬

the

of

volume
1956.

For

about equal to the same
this year, and the total
the year at least above
Despite periods of adjustment

year

period

traffic.

locomotive.

contemplate that gen¬

plans

period of 1956, with the balance of
the

ing

tration

President, Burlington Lines

However,

duction lines running almost

go

MURPHY

Our

situation in what always has been a
motive

On

the

is

^

1957 will be better than for the same

produce many products for the railroads—
scales, generators, etc.—our primary piece of

railroad

healthy climate in
industry
can

a

V-''--*.*•

eral business for the first quarter of

we

pumps,

than 1955, de- T

steel strike.

modifications, it is capable of
powering any of the three light¬
weight car designs now being built
in the railroads' bid to gain greater
passenger

While

railroad

the

which,

will be slightly better

spite the adverse effect of the recent

with

with the

Henry

traffic.

designed

railroads.

Eastern

two

on

discriminations
both

period of last year, with no material change in passenger
We anticipate that our volume for the year 1956

1,720-horsepower

locomotives

Pennsylvania Railroad, our freight traffic for

On the

the first six months of 1956 has been 14% over the same

new

power
the modern, high-speed
lightweight passenger trains.
The
Speed Merchant was conceived at
first
to
pull the new Talgo-type
trains, planned for passenger service

railroad operations

of

•

our

correct

would

a

as

to

perficially satisfactory performances
by rigid economies which cannot be
maintained indefinitely.
A railroad
consumes

Merchants,

Speed

supply the railroads.
Many railroads are producing su¬

of

first

the

diesel-electric

which

great

as

Adoption of the Cabinet

Vice-President, The Pennsylvania Railroad Company

By the end of the year, we

deliver

will

twice

orders

year ago.

expenses.^

by the next" Congress

report

J. P. NEWELL

with

year

rates to

our

beneficiary,

ended the first
a backlog of

company

the

of

railroad

at the same time is confronted
demands and also substantially higher
costs for materials and supplies be¬
cause of wage awards in
industries

recent wage increases and
with

own

adjust

this inequitable situation, with the shippers the ultimate

and these backlogs were pushed even far¬
the recent steel strike.
^

to

us

makes it difficult to maintain a proper balance

profit,

Co.

equipment makers have a busy six months
In general, they are sold into the first quarter ;

ahead.

permit

to

regain much of this traffic, which we could handle at a

MORSE, JR.

Fairbanks, Morse &

President,

Failure of the Interstate Com¬

Canal.

Commission

merce

,

waterway

and Intra-Coastal

charge.

occupancy

by

competition is especially serious in
MoPac territory since we are subjected to more of this
type of unfair government-regulated transportation than
any other railroad—all the way from Omaha, Nebr. to
Brownsville, Texas on the Missouri-Mississippi rivers
Inland

Railroad

;

Thursday, August 16, 1956

rates, especially in view of the pending new demands
railroad labor for another wage hike.
*

coach will contain accommodations for forty passengers

from page 26

Continued

:

.

lor the Industry

Railroad Executives Discuss Outlook

>•

..

(704)

■

a

but, to date, there has been

a

lack of action to translate

into actualities any of the proposals which

assistance

There

gradual awakening of the public to that fact

to

the

industry.

The problems

would be of

of subsidized

competition, unfair discrimination against the railroads,
high taxes and unsatisfactory return

on

the investment

Volume 184

Number 5560

.

.

The Commercial and Financial
Chronicle

.

(705)
in

railroads

require

positive action. If it can be
forthcoming during the ensuing year, it should be help¬
ful—not only to the railroads but to the
economic wel¬
some

fare of the entire
country.

future

results

should

show

marked

a

compared with figures shown
for the period

in

improvement

The thing of most concern is
the fact that the
wage
scale which the railroad has to
pay and the costs of the
equipment and supplies it^has to

as

last annual report

our

ending March 31, 1956.

at

D.

J.

R.

RUSSELL

President, Norfolk

President, Southern Pacific Company
Southern
its

Pacific

business

confidence

our

The

is

spending record
How better can

capacity.
in

railroad's

the

future of the

outlay

for

be

to

sums

expand

demonstrate

we

territory

capital

will

year

The

we

serve?

improvements

even

greater

this

than

last

net

Norfolk

of

been

good.

But

1956

turn

out

to

rier,
of

we

there

Donald

on

rail

the

J.

Russell

of

a

backs in automobile
production, and,
to a lesser
degree, the July steel strike. In the first
six months of the
year, Southern Pacific
did little
more than

hold its

own in traffic volume. True, our
transportation system's freight revenue for these months
totaled $298,890,876, an increase of
$11,854,788 over the
same
period in 1955. But the bulk of this increase
^

not from greater business, but from the
higher
interstate freight rates which the ICC
made effective
came,

March 7.

on

This

summer's

down-turn of revenue points
up our
need for intrastate
freight rates in line with the in¬
terstate rates.. Only three of the
eight states served by
SP have so far authorized within-tne-state
increases.

at

now

of

steel

the
us

of

lasted

an
end,
capacity

industry for
This

we

recover

the

year.
to

of

earnings in July.
earnings for the last half

Normally,

of the year
than those for

somewhat better
the first half and we
hope that will
be true again this
year..'
:
are

165%

the

We

expect

month

further

in

upturn of freight traffic late
September, with volume spiraling up

final

quarter.

Steel

mills

will

at

Physically the railroad
cellent

condition.

is

in

R.

H.

current.

steel price

industry

West and Southwest.
For example, tnis

summer

placed

we

more

order

on

labor

for 154 new diesel units.
With the 185 units or¬
dered last year, these will
bring out fleet to 2,000. We
are already more than
90% dieselized, and we are aim-r¬
ing at complete dieselization in 1958.

Early this year SP opened

$7,000,000

freight car
classification yard at Houston. The new
gravity yard,
making use of radar and other electronic devices, has
enabled us to cut car movement time
by about five
a

hours.

under

or

construction, all of which

another $250. The
average cost of a ton of
increased 161% from 1940 to
1955.
But against such
increases in the
principal items that
go to make up its
operating expenses and its new

rail

equip¬
costs, the railroad's average
freight revenue in¬
from .6480 per revenue
freight ton mile in 1940
9800 in 1955, or an increase of
only 51.2%. If these

ment

creased
to

unbalanced trends
continue, the results will be serious.

And the railroads
today have demands for tremendous

wage increases from the labor
organizations

practically all of their employees.
H.

President; The

representing

\

of June

an

SIMPSON
and

Our

six

Ohio

gross

months

casted
1956

were

gross

are

come

of

Railroad

earnings

net income of

Company

for

the

yard, this

fall.

one a

$6,000,000

into operation

this

To

speed car movement still more, SP this June com¬
pleted a $7,000,000 project increasing the
capacity of its
busy stretcn of line between Colton, Calif., and
Yuma,
Ariz. We converted 114 miles of
automatic block signals
traffic

control and extended
sidings and
rearranged spacing on 71 miles of existing CTC.
We also stepped up construction this
year on a 13-mile
rock fill to replace SP's famed trestle across Great
Salt

Lake.

This
biggest of Southern Pacific's projects—a
$49,000,000 job—is slated to be finished in
early 1960.

Along with property improvements like these,
vvigorously pursued new ideas in service.
We established

we

have

integrated air-truck freight service
last May. Our highway subsidiaries are
working with a
number of air lines, handling shipments between
many:
an

western points and transcontinental air
terminals at San
Francisco, Portland, Los Angeles and Reno. This month
we announced plans to start similar air-truck
operations

$14,022,859.
earnings

$455,000,000,

Our fore¬

for

the

with

These

,

figures

take

into

account

the difficulties caused
by the
steel strike and not

/year. •
H.

E.

First Colony Life Insurance Co.,
its home office in Lynch¬

Colony Life

with

burg,

Ins. Stock Offered

$12.00

Share

a

Johnston,
Lemon
&
Co.
Scott, Horner & Mason, Inc.
joint

managers

of

and
are

investment

an

banking syndicate which is offer¬
ing 175,000 shares of First Colony
Life Insurance Co., Inc., comipon
stock at $12.50 per share.
"
Net
the

proceeds from the sale

common

shares

will

be

of

used

primarily to increase the capital
and surplus of the company, thus
to

a

position

expand its business by increas¬

ing the amount of insurance which
it may be permitted to write.

Va.,

holds

multiple line
charter which permits it to write
ordinary life insurance, annuities,
group life, industrial life, health
and accident insurance,
hospital
a

—Auchincloss, Parker & Redpath;
Ferris & Co.; Stirling, Morris &
Co.; Rouse, Brewer & Becker;
Goodwyn & Olds; Mackall & Coe;
Birely & Co.; Wyllie and Thornhill; and Alester G. Furman Co. ■ '

and

medical expense, group acci¬
dent and health, and non-cancell¬

able
ance.

accident
The

and

health

company

insur¬

commenced

writing insurance on June 8, 1956,
and as of July 25, 1956, it had re¬
ceived applications in the aggre¬
gate amount of $740,054, of which
policies in the amount of $612,654
had been issued.

With Calif. Investors
•

.•

(Special to The Financial Chronicle)

LOS

The South

ANGELES, Calif .—Jack M.

Fenster

is

now

connected

with

California Investors, 3932 Wilshire
Boulevard.
/ ■'''V:;

3 With

:

;

:

''V '*■■■;/>..j.

•.

/■

Dempsey-Tegeler

(Special to The Financial Chronicle)

-f

LOS
Upon completion of the current
ANGELES, Calif .—Grant
financing outstanding capitaliza¬ H. Chidester, Richard B. Ham¬
tion of the company will consist mond, John R. Pierce, and Paul
of 310,000 shares of common stock, F. Taylor are now affiliated with
$2.25 par value.V. :
Dempsey-Tegeler & Co., 210 West
Participating in the offering are Seventh Street.
v

TAKE THE INDUSTRIAL ROUTE

expanding

pioneer among western railroads in "piggybacking"
movement of highway truck trailers on rail flatcars—SP now transports almost 300 trailers a
day. We
have just approved the expenditure of another
$2,000,000
piggyback equipment.

SOUTH

today offers the ideal combination of access to raw materials, abundant power,
markets, ample supply of cooperative labor, plus superior transportation

consumer

service.
Let us help you to locate
advantageously in the South, as we have helped others. Our ex¬
perienced industrial development department is prepared to recommend sites to fit your specific
needs without obligation and in strictest confidence.

well into the

Call
R.

pipeline business, too.

Southern

or

E.

908 W.

Angeles and

consuming
operations

paso

areas
were

refineries

early

this

to

year.

V

General Industrial Agent

Pacific Pipe Lines, Inc., began running refined
petroleum
products through its $35,000,000 line from the Los

El

write

BISHA

Broadway

the

Tucson-Phoenix

Louisville, Ky.

By

mid-spring,

Phone WAbash 1121

the

in the black.

Extension 318

Encouraged, we are surveying a new pipeline route
the High Sierra to connect the San Francisco
Bay

over

area

with Reno and Fallon, Nevada.

These

complete

land

transportation

Chemstrand

services

are

country.

V

•;

A.

P.

•

Corporation's multi-million dollar nylon fibre manufacturing plant

Pensacola,

Florida,

is

one

of

the

many

industries newly located along the l&N.

.y

SHEARWOOD

Chairman, National Steel Car Corporation, Ltd.

During the last 12 months, substantial orders for
freight equipment have been placed by Canadian Rail¬
ways, so that despite large shipments we have accumu¬
lated a backlog of orders which will
keep us fully occu¬
pied for many months ahead.
The supply of steel and lumber will
probably be the
major factor affecting profits in the months to
come, but




near

be¬

ing continuously retooled to meet public needs in the
West and Southwest, the fastest growing sections of the

LOUISVILLE

&

NASHVILLE

any

'•

Simpson

A

are

recent

anticipating

further serious labor difficulties this

all-time record volume of this
traffic

Was handled by the Norfolk and
Western, and the July
figure then exceeded that of June.

First

in¬

roundly $28,500,000.

—the

new

year

net

in Texas.

We

first

$235,537,525, with

it

secure by the end of 1957.
encouraging feature of the coal business, the
railroad's principal traffic
producer, is the steadily in¬
creasing foreign demand for American coahrln the

month

E.

Baltimore

A most

putting the company in

First units of another radar

facility at Eugene, Oregon, will go

of

more

increase resulting from the
recent steel
wage settlement will increase the
cost

expects to

at

$24,000,000

a

order

on

other,

end

car

coal

a

coal cars, as measured
by capacity, than it did on Dec.
31, 1943, in the middle of World War II when it was
handling a larger volume of coal, it has acquired
3,000
new coal cars
during the current year and has 5,000

ever

preparing for the further growtn of the
burgeoning

centralized

and

the

sub¬
average cost of a 70-ton coal
hopper in¬
than 174%, and the
indications are that

good, with bad-order freight
bmitn
cars
averaging less than 1% of total
ownership.
Track maintenance
is
Although the railroad at present owns more

operate

building projects, will stay at high level.
Taking the long view, we are more active than

to

more

ex¬

Equipment condi¬

tion is

capacity production, new car models will stimulate
auto sales; heavy
construction, boosted by government

in

1940 to

moderate

a

and

the

increasing

are

freight, rates

rates per

wage

of

,

this

than .its

instance, from

man-hour increased
(excluding fringe benefits which were

stantial), the
creased

purchase

rate

For

Vr;.:

inadequate net earnings.

.

which

promise

the

balance

loss

car¬

year we have felt the effects
decline in home
building, cut-

strike

of

hope will enable

be

;/ This

the

holiday

appears

operation

faced with the problem
out much-needed ex¬

are

carrying

pansion

another

miners'

July 10.

With

important

many

and
year

average

than

Company

railroad's

until

another good year for
gross revenue.
The net, however, is the

tfiing. Like

the

coal

freight business this
will

Railroad

charges.

1955

volume of freight
business for July and resultant
earnings were materially
reduced by the steel strike and the

spring and summer, Soutnern Pacific
believes

Western

much, faster

a

service

Western's volume of business
earnings for the first six months of the current

have

all-time high of $117,600,000.
Further,
SP
expects
to
keep
on
pouring out improvement money in
a big way for several
years to come.
Despite
temporary
setbacks
in
kinds

and

SMITH

and

year's

some

H.

29

RAILROAD

.

The Commercial

the

Continued from page

.

.•.

Thursday, August 16, 1956

vestment than there is to compare fair treatment for tho$£ investthe outflow for investment to the ments.
inflow for the purchase of coma further comment of the Ranmodies or to the inflow for any dall Commission was that:
- other purpose. Secondly, it can
„T
extent the general
be seen from the tables what an Umate and j
, envlroLnent for
overwhelming proportion of the private investment mav also be
increase of foreign investment m ^r0ved thro^
the U. S. is in investment in gov^ernational treaties relatiS"

in other parts of
provide outlets for

time

same

the

3

world

to

Venezuelan production,
does
the
$342 million
seem
a proper figure
to use for
the

since a portion
reinvested in
branches and
affiliates involved. Never-

profit withdrawal,

Foreign Investments

01 D. S.

of that amount was

by

Venezuela

foreign

the

will follow. The need in Latin theless, even if the proper investAmerica is clear. By referring to ment figure had been used and
the table you can see that in 1954 had been found to be greater than
the capital outflow to Latin the proper figure on earnings
America was only $222 million for withdrawn, the argument would

TndivSuL

ernment securities, short-term se- tQ f .
investment Although :
curities, bank deposits, and other
mUst Ce' "ecTgnized that such!
forms of portfolio holdings where- +reaties more often reco.rd > the
as the increase in U. S, private ^IstTnce of a fawrable cSitote
investments abroad is largely in fch
it th diSCUSSioM

CSS? SSfVSSiSS of

comparable to the figfre the
investor normallv uses and such as I referred
S above for my own company,
The gross figure rather than the
figure

gross

Neither

Viewpoint

A Realistic American

-^ecbnical innovation.

d*e forlhe

^^
Government shoufd continue to
iff erS to leave the impression ZTstLZtll investment.
&T3fc
of the don't wish
treatment of foreign

irthaTamolfas
vestmenTFliavereferred toS^MoreI

the budget amount is even

amount which
initiative, the
managerial skill, and technical
assistance characteristic of direct
it is the gross

over

higher, created is no reversal
wealth - producing process. As
bankers I'm sure that you are
fully aware of the role of investment and financing m turning

approaching $400 million. Here
again is an evidence of the great
discrepancy between gross and
net.
outflow figThe discrepancy is also evident

Carries with it the

private investment.
?
Even if the net
ure
were
zero,
U. S. investors
would still be making a tremendous
contribution
to ' economic

in the figures for individual countries. As an example I have ineluded Venezuela in one of the

introducing tech- tables. The capital outflow from
nological improvements and by the U. S. into the petroleum inreplacing their depreciating dustry in Venezuela is shown at
equipment with more productive only $7 million in 1954. Yet in
equipment. In foreign areas, just that year alone the affiliates of
as
in the United States, most of
my company in Venezuela made
the rise m output per capita can- expenditures of about $125 million
not* be
explained by additional for new plant and equipment and
doses
of
reproducible
capital - in the search for oil Even aside
goods and of labor. Mos of it has from this statistical evidence I
come trom increases m the output
hink anyone who has observed
per unit of labor and reproduc- the economic progress of Veneible capital employed.
This fact zuela would doubt that such proghas
been stressed
by Professor ress resulted from annual investSchultz m the most recent edi- ments of the order of magnitude
development by

of only $7 million.

the

of

Proceedings

the

of

tion

ing

that

United

s

in the
tenth
capita output

a
period
only about

over

rise

in

per

a

could be attributed to the increase

satisfactory

more

noixiic

o*

+v»a

• rtyinj

a

some

necessarv

are

rt

the earning rates required by pri- The lnfluence o{ the u s. Gov. and that duri
this period guar.
vate "?vef°" a™ that therefore
ernment on Private U. S. anty "coverage on a discretionary

credit® at Ue^st

.

basis be authorized for the risks

Direct ^vestment Abroad

rates

5%Again,1'"to

Improper Investment

States

the

that X think private investment
Foreign Investment Treaties
will by itself remake the world in
A++u ++•
*•
u
the next few years. Inter-govern- m^ernatre™ies
mental assistance—not only direct ®
r
J
potential wealth into actual miiitary assistance, but also eco- . , . for •thlSn*
3SSistancCj in iiiu iuxnx 01
wealtth I am afraid however, nomic and
assistance, grants—will be signed si ce thl " £ Sine., then
in the form of cit(noa
loans
few
the war. cinr.l ^1"
that there are some^countnes,
in
areas
where tw0 n?ore have entered mto force
which are now suffering as a re¬ there
the political
understand*
suit of a failure to realize tms ments for assistance but require- " ^
not the
Sf Flu
y und=rstandrole.
active
negotiation.
Clearly
Sometimes the representatives political prerequisites for private der that three others are now uninvestment.
At
of such countries have attempted luvesuuciik y ^ the same time,
,
_
.
to depreciate the value of U. S.
^ is anowed to prove it- Pr0Sress bas been made in tms
P^ate *°r*lgn
self, private direct investment, area*
r :
eral by comparingthe gross'ear
thr
h itg com5ination of per_
A third recommendation of the
ings of $2,306 million in
on. mane
initiative and inn0Va- Randall Commission, over the
U S. direct mvestoent awoau
^
g a
rful force strong obj£ction of a sizable miwith the $761 million outflows
.
development of a free nority, was "that the program of
iney
i*u ut. ju w —— world wholl
comprised of self- guaranties against expropriation
that under-deveiopeo areas in
,.
J, nrnffrpcrinu arpa<! or inconvertibilitv of exchange be
particular cannot afford to, pay support,ng and progressing areas.
period of trial

I" view of the clear advantages TZv* revolution and insurrecof war,
Interpretation
"me, a proper comparison is not to world economic development tion on new investments abroad.
In this connection I might note being
made; current earnings andI to tbe U.grown^lowlv over Ft^fiv^yea^s
that I was both surprised and dis- should be compared to their own vate U. S. investment abroad, one gro^^slowly over its five years
appointed recently when a friend parents, that is to the investments would expect that^it would re- of ^iste ce.
e
4

whe™
of

and Financial Chronicle

(706)

80

ing to Venezuelan development
since they were taking more out

Acwhether the
S. direct in-

measure.

ture

million out of $i63 million in
guaranties had*,
the
had
investments in-:l
applications for

might also be branch and by bipartisan com-

It

years.

,

pointed out that the argument for missions there is^such support, authority to issue
gross figure for U.
of the country than they were government credit leaves out of Unfortunately,., there
are some been used and
program
.
vestment abroad would be four putting
in.
In arriving at this account the fact that amortization shortcomings in die ' practice of expanded to cover
or six or eight times the net outcontention he had probably ex- payments on public loans are like- what is preached.| Taxes are, in 30 c o u n t r i e s;
:
flow. The figures on the gross are eluded from consideration the tre- ly to drain at least as much for- my estimation, the^ area of the guaranties in excess of $300
,
just not available.
mendous current expenditures of eign exchange from a country as greatest
governn^pnt influence, lion were
r
the U. S. investors in Venezuela the excess, if any, of private profit and the area,
where But has never but the proposal re- the war risks,■„
Commerce
Department to
for taxes, royalties, and operating
repatriation rates over interest shortcomings are significant.
rublisn
buch
Data
expenses.
Probably he had com- rates on public loans. This is true there are other important areas mains a live issue in Congress. .
Fortunately, the Department of pared the $7 million outflow to because direct investors normally 0f influence, let m£ mention these In May the House Foreign Affairs
Commerce has recognized the in- Venezuela with the estimated $342 not only leave their capital in- first..
Committee voted for the war risk-,
terest in the gross figure and is million earnings in 1954 by U. S. vested, but actually add a portion
Randall Conunission
coverage, for extending the life *
now
compiling for
publication oil companies in Venezuela, For of their earnings to it.
Recommendations
of the program for ten years, and
tually I don't know

tQ^r'

later this

gross

the reasons already given the $7

direct U. S. private investment in

million does not seem the proper

year

a

Latin America.

I

figure

on

'

ward

Investments Here

Comparable to Those

figure to compare; and it might be

looking forto the event and hope that
comparable figures for other areas
am

Investment

Position

(Latest published figures

the United

of

States

of May, 1956, in $ billions)

as

Increase

Increase

During

Value at

During

Year

Year-End

Year

1954

1955

2.8

26.6

U;'::

2.1

24.4 '

1.4

17.7

1954

U. S. Private Investments Abroad

Direct

Capital Outflow—
Gross

;

Deductions

.686

.761

Net

Inv. of Subsidiary Income—
Gross

Deductions

.641

Net

5.0

Foreign Securities
Net Capital Outflow
Net Increase in Security Values

.5

Other

.1

1.6

.6

2.2

U. S. Government Investment Abroad- —.1

15.6

Total U. S. Investment Abroad

2.6

42.2

Foreign Investments in the U. S

3.1

.3

Short-term

Private

—.1

.2

,

•

.3

—.6

Distribution of Private U.

the U. S.

is helpful to

the finan-

There

f

to

compare
.

is

,

the- outflow

T? ®
®
?W
to the inflow for
«

investment

-Petroleum-

investors." \ is

It

Outflow

during

Investment In

Canada

Europe..

Total
SOURCE:

country
Capital

Year-End

during

1954

1954

1954

1954

during

Inrrease

Value

Year-End

during

during

Year-End

1954

1954

1954

1954

Outfiow ably

di9553
119

1,688

124

218

4,568

102

222

6,256

32

46

59

361

53

91

1,399

227

1,038
1,160

267

470

697

5,939

340. ing

62

671

13

174

4,779
1,934

469

23

124

1,824

62

120

1,124

154

264

2 948

111

466

1,101

12,395

761

1,419

17,748

686

418

Business;




5,353
August, 1955,

March,

1956.

be

»

an

iending should not encourage

area

the

dispiacement of private by public
operations. It should also be em-

phasiized that pubHc lending
should not compete with, or dis-*
piace> private foreign investment,
including private loans to foreign ♦
borrowers,
and. this principle,

should be made abundantly clear"
to prospective borrowers.'' Hereh

again it is difficult to judge, but,

I have seen various evidences

awareness by the

of

lending in-,

stitutions both of the desirability.
of not displacing private investors

anc? als?

the desirability of en-

I. tion of the

International Finance

of dip-

a

Ij^or your own

bette|':

judge

than
.

the representatives , abroad of the
U. S. Government have been tak-

4

7

295

tjbiis

on

comment by

..

...

—22

Survey of Current

-

It is my impression, however, that

92

Venezuela

Other

during

1954

Outflow

202

Latin Am

W.

-TotalValue

vvcio

Commission that "there are h
special circumstances in which
United States economic and for- •
e^gn poiiCy objectives can be i.
served by ^public lending. . .
wherever possible,
such loans should be made to private enter-.
prjse abroad, and foreign public

tering into partnership witn pnva^e investors to reduce the need
each of £ou would prob- for public financing. The forma,.

..

There was another

system,

|q^generalize

easy

lomaticactivity,

Capital
Increase

not

...

Private

Lending

United States full

-

performance in

Other Than Petroleum

Value

Lvw

.

interests

7

in-

ertterprise

ivate

the
»

for

S. Direct Investment

Capital
Increase

Public Competition to

stressing support

vestment abroad,

.
.

.

tion which the United States Government can tak^;4o encourage
the flow of pnyat^v investment.

,

Capi'al

reported to

f°r increasing the authority to
??sue ^
insurance by $300 million.

"There are various types of ac-

no more rea-

($ Millions)

Outflow

on

the

the President andfCongress that:

position of the foreign areas

son

15.4

—

abroad.
Tbe government can and
sometimes, as in 1954, even greater should give full diplomatic supthan the increases in U. S. invest- port to the acceptance and underment abroad. This criticism over- standing abroad of the principles
looks two
important aspects of underlying the creation of a clithe investment increases. Firstly,; mste conducive to priyate_foreign
there is no close relation between investment.
Thisi^requires better
the two types of investment in-, coordination of ppliqy^and action
creases;
one
does not determine by the various Un^ed States agenthe other.
Whatever the flow of cies and representatives
in the
funds to the U. S., whether for field of foreign economic:policy,
new
investments in the U. S." or and, in particular^; a £lear formufor the purchase of U. S. exports^.lation of the goyeimment's posithe outflow of investment from tion with respec|. to. private in-

concerned.

22.8

„

criticism has
that the assistance given by

private U. S. investors to foreign
areas is not really important since
the annual increases in foreign investment here have been of the.
same
order
of magnitude, and

cial

3.981

2.9

Other
U. S. Net Creditor Position

'

26.8

.205

Long-Term Direct.

,1

Economic? Policy

Randall Commission—

Another occasional

|

Commission

the

1954,

Foreign

Made

Abroad

pointed out that the oil companies
had to make large investments at

been
International

In

Not

milpending. The program
been extended to cover ^

increasing interest in seek-

Corporation mightawareness; yet
be taken as
evidence of this
each time a new agency

j

bave

parent availability of yet

ing both an understanding 0f the source of public
contribution of prjyate U. S. in- vide the excuse
vestments

in

foreign- areas

and

ig created

worries whether the ap-

some

another

funds will profor inaction in

governments on the making

Volume 184

of

policy

Number 5560

changes

r.

..

which

The Commercial and Financial Chronicle

would

the barriers to the inflow

remove

of private capital.

Finally, and

the

Randall

mended

most

that

"provide

the

current

recom¬

investment

by

removing

not

The

S.

U.

tax

that there

features

some

law

which

impact of U. S. taxes
from

made

present

the

the

abroad; foreign
may
be credited

taxes

against

U.

S.

taxes

of

changes

of

U.

will,

private
S.

I hppe,

interest

same

a

capital,
home
and

made

which

otherwise be payable on
income from abroad; investments

capital-exporting

of

well

as

fields.

is

from

It

of

is

are

even

certainly

were

the

that

the

foreign

investor
the

there

world

discrimination

serious—to

nations,

true
of

areas

the

is

in

against

far

detriment

more

of

the

present standard of living and of
the hope for the future.
These
areas

ing certain

a

exhibit

in

reluctance

varying degrees

to

benefit

from

areas.

knowledge and physical capital
'/PPPPjPPl'^P::
tax; and The Influence of Foreign Govern¬ offered from abroad by private
the income of subsidiaries incor¬
investors.
In
the
extreme
inments on Private U. S. Direct
stances of economic nationalism
porated abroad is left free of U. S.
Investment Abroad
14

a

point reduc¬

tax until the income is distributed
as
dividends. In my view, these

provisions should be regarded, not
special benefits to the invest¬

affected, but rather

as rec¬

ognition of the fact that income
from

investments

nature

abroad

different

income.

from

What is

is

of

of

a

domestic

impact

a

investment
various aspects

the investment inflow.

on

in

now

vestment abroad.

fan/

by a
subcommittee of the Congressional

and

promptness

in

U>

S.

tax

treatment

from abroad.

committee

In

all

our

of

income

*

report to the

four

of

agreed

us

this

list,

let

foreign private firms. When there
some experience with the cost

is

of

these

contrast

short

to

methods

run

the

alternative

in

of

al-

introduction from a May 24 report
than substance,
in the New York "Times," after
plays too important a role in
against the private foreign invesC' determining the .incidence of U. S. substituting a few blanks:
tor.
To
be
sure,
governments
tax on investme nts abroad.
We ,• "The* climate for industrializa¬ rarely
change'policy overnight,
tion is critically handicapped in
all also agreed that some,
and, indeed, often cannot.
lighten¬
/
Blank.
Foreign capital hesitates
ing of the present burden of tax

that form, rather

now

_

foreign income was necessary,
though we disagreed as to just

on

how

the burden

should

be eased.

broad

extension

I. recommended
of both the 14

point rate reduction
and the deferment of tax on. in¬
from

come

This

is

investment

the

which

program

recommended

abroad.

the

by

was.

Randall

Cpmmission, and it is the

program
the President has urged in

which

to

messages

Congress

in

each

of

Banks & Bankers

when Esso Argentina

ago

its

from

nurses

advanced

to its

quarterly dividend payable
December, 1956. Details of the
merger
of thfe banks indicated,

in

during the capital's severe
polio epidemic; the company was

with the Detroit Bank
in

because

as

had

been

not

private

investor

content

a

to

the

Day, President and

Director of,
Co.,
Aug. 13, elected directors

to,

the country;

to

come

who wants to open a business in
Blank usually ends by
deciding

against

the

venture.

The

investors, either foreign¬
Blanks, to take part in the
growth of the country lies princi¬
ers

or

pally in corruption.
decides

man

to

;

.

.

When

a

into business

go

here, he and his associates must
figure immediately the large costs
involved in obtaining the neces¬
sary licenses and permits.
They

tfc e last three years. So far no also
must reckon taking into the
legislation
has
resulted.
This, business with them one or more
spring the Administration discon¬
persons in the

of

Private

on

_

„

Influence

•

^„s

.

Public

U.

S.

Opinion

Direct

vestment Abroad

reluc¬

tance of

f

The

Anyone

Governments,

In-

;w.v/;•r

they

when

re-

strict private investment

activity,
normally act just because
they
are
fully
self-motivated
groups
of meddesome men. In
large measures they are directed
by the currents of public opiniorr.
do

not

were, on
of National

is

President

coming study by the Department
of Commerce on U. S. investment
in Latin America. In addition to

of

Commerce

United

picture

the impact of

of

I

was

ment,

Company,

ana

private

its

efforts

Congress

to

program

this

to

take

persuade

action
j

year,

Meanwhile,

the

on

the
the

s

Administration

is making some efforts to imple¬
ment the announcement made at
the

Rio

Economic

Conference

in

1C54 by
Secretary of the Treasury
Humphrey that-the U. S. was will¬
ing to modify the U.S. tax system
in particular cases to provide that

the

effective

income

S. tax, rate on
investments in a

U.

from

country;would not be raised when
that country lowered its tax rate

Such

government."
situation would be

a

a

threat to the future of the country
even
if it did not also drive in¬
vestors

away.-

far

too

which

such

to

there

are

many

—

general in¬

many—I feel
other ways in

governments

are

prone

to

affect. directly the process of in¬
vestment.
For example, each in¬
vestment proposal may be required
to
pass extensive screening and

licensing by multiple bureaus, and
the investment goods themselves
have to

separate gaunt¬
for a
limited period to attract let beiore
being allowed across
investment.
So far no treaties of the border., In the
process there
this type have reached the stage is
always the danger that the rules
of signature.
will be applied in such a way as
to

Lack

of Tax Treaty

This

either

lack

accomplishment
by legislation or by treaty

in the tax field is
more

so

unfortunate, the

because there is need for

various technical changes as well
as for
the two major extensions
which

is

I

have

needed.

mentioned.

There

Reform

is

something
present system,

wrong with
the
which places U. S.

disadvantage

in

investors at

the

a

rates

at the

Treasury.
wrong
sures

There

with

the

expense

a

system

same

dollar earned in

a

S.

had.

had

Even after

an

of
experi¬

many

personal

as

I have

investment

is

admitted there is the danger that
the complex exchange regulations
the tax laws will be written

or

administered in such
discriminate
from

a

against

abroad./

way

as

or

to

U.

State

S.

the investor

Discriminates

Against Canadian Brewery

Pernaps

no one

immune

to

of

this

our

Re¬

Maryland, under the obvious

as¬
a

on

a

dollar




ing
had

firm

of

localbrewing

barred

from

a

-

I

Public

opinion is important in
capital-exporting nations as
well as the capital-importing nations.
In a capital-exporting nation, for example, it is easier to
obtain appropriate tax legislation
on

income from investment abroad

if

there is greater public understanding of the problems of foreign investment. In a capital-im-

etc.

A charter

of

is

—

on

of

most
is

it

easier

devoted

to

our

for

the

investment it there

better

public understanding of
resulting from the inflow of foreign investment. To be
realistic, it is often easier for gova

the benefits

to withstand the presof self-interested local groups
if there is a public understanding
ernments

sure

of where the

This is

general interest lies,

true in

as

the field of in-

vestment restriction

field

of

trade

strictions.

and

as

it is in the

payments

re-

urg¬

interests,

reputable Canadian

investing

in

a

Efforts

new

subject

justified
tors

at

Efforts

public education
of
investment

successful for the

been

are

the part of the inves-

on

themselves, the U. S. Govern-

to

a

broad

sense

a

high profits and dividends at the
expense of
broad sales volume,

that the local investor hoards his
funds or invests them unproductively. The approach of the United
States investor is surely different,
emphasizing a wide market, and
constant reinvestment for growth,
your own

whatever

their

nation-

ality. I have talked only about
the U. S. investors, for that was
my assignment, and it is a subject with which I have some experience., I hope I am not for
that reason any less appreciative
of the contribution of the investors of other areas who cross international boundaries and of the

normally greater numerical contribution of those who are invest-

increas-

ing opportunity,
In your positions of public leadership
make

at
a

home

I hope

you

vestor

the

conducts

well.

company

both

in

the

As

I

other
an

work
U.

S.

C.

S.

The

National

Sys¬
will have

'

'

:

*

*

Sil

The sale of

$50,000 of new stock
by the Peoples National Bank of
Miami Shores, Fla., has brought
about

increase

an

capital
as

1

-

in

the

bank's

$600,000 to $650,000

from

of June 27.
*

*

*

The ground level

banking room

of the First City National Bank of

Houston1,

Texas,

doubled when

was

large

a

virtually

new

annex

opened to the public, Aug. 6.
The enlarged banking roohi, with
was

nearly half a city block of ground
floor space, may be entered from
four
streets.
With
its
23,000
square
comes

feet of floor space, it be¬
the
largest
street
level

banking room in Houston and one
the largest of its kind in the
Southwest, according to First City
National Bank officials. Desks of
of

officers

13

were

moved

collection,

ment,

into

the

It also houses the state¬

new area.

payroll,

and

commercial loan departments, in¬
stallment loan tellers, and
ment and

install¬

personal loan interview¬

etc. In addition to the
larged main banking room,

en¬

ers,

the

First

City National Bank occupies
the basement, and first four floors
of the 22-story building as well
as the second floor and part of the
basement of the garage across the
street.
The First City National
Bank, which had deposits of $612,-

340,516 at the June 30 bank call,
was formed March 30 by the con¬
solidation of the First and City
National Banks. It indicates that
it

is the

largest bank in Houston
in Texas and

and the third largest

the Qouth.

will

your

and

groups,

the

to

Cashier.

In

positions of business respon-

N*-*onal

n^rst

contribution toward mak-

ested

as

Easley,

at

a

investors

ing that opportunity possible.

private

July

bank which will represent a

tem of the Easley Bank,

you

ment, foreign governments, inter-

businessmen

Easley,

and the host communities, I would

recommend

that the future will hold
on

of

as

capital of $300,000 and surplus
seen the studies prepared by the
of $289,468.
It will be under the
National Planning Association on -management of Julien D. Wyatt as
foreign investments which have President andCarnis B. Davis as

ing within their own country. For
all of the investors it is my hope

y-

issued

was

conversion

been doing an outstanding job of
public reporting. - If you have not

investors

are

servants

$1,-

31 for the Carolina National Bank

new

restrictions

countries

exceeding

resources

750,000,000 in its June statement.

have also

national welfare to avoid harmful

porting nation—and
public

Associa*

Ordnance

National Bank of Detroit re¬

ported

••

As bankers, in the interests of
countries and your own
businesses, I hope that you will
add your voice to an educational
process
which should result in
greater opportunities for private

the

countries

disease.

which

on

sense

the

Public Educational
A

a

.

something

low-tax under¬
as

Possibly

have

with such instances

cently I noticed with dismay that
the
legislature of our State of

tax payment

developed country

corporate

ence

their- is

of the U.

is

position

private
minion of the

you

There

raise

to

favored

a

well-connected

government.

is something wrong with a system
which effectively encourages for¬

governments

or

in

have merely been saying that the
public
needs
to
be
better
in-

of

presence

strong foreign competition.

eign

some

firm

of

run a

preserve

for

Accomplishment

;

may

interference,

govern-

formed.

In addition

fluence,

ill-conceived

com¬

Director of

a

tion, President and a Director of
Metropolitan Detroit Building
Fund, a Director of the United
Foundation and the USO, a Trus¬
tee of the University of Detroit,

Europe and the U. S.

cultural one, that is the introduction of new attitudes within
the private business system. It has
been alleged that private business
within some foreign areas pursues

of

various

of

Mr. Day is

American

the

oil, the government of

investor which is in

ment

Director

a

panies.

struck just re¬

groups

Trustee and member
Committee, Eisen¬
Exchange Fellowships, Inc.,
a

of the Finance

I

Some private

a

hower

Private Public Reporting

'

Conference

member of the Council
on
Foreign Relations, Trustee of
the Power Reactor Development

that province alone had taken in
more than $525 million
in royal-

vestors from

Industrial

Board,

Jersey affiliate, Imperial,

a

discovered

the

board member of, the Na¬

a

tional

nouncement by
when

the

of

Trustee

a

the

of

Chamber of Commerce and of the.

read of the anthe government of
Alberta in Canada that since 1947,
when

cently

States,

Mr.

of

Committee for Economic Develop*

public releases of foreign governments
also
serve
to
give
the
investment.

Mount
mon

stock

sorbed,

Bank

of

Vernon, Wash., with com¬

at

of

the

$100,000,

close

was

ab¬

of business

in-

sibility I wish

for

making the best use of the oppor-

July 13, by the National Bank

tunity!

Commerce of

and

of

U. S. Council of the International

.

tinued

announced.

Coleman

fortune

do

in

Detroit,

Chamber

When I have referred to the mis-

role

President,

Jr.,

of

Charles T. Fisher,

the forth-

mentioned

I

play an imporforming public
opinion, but once the opinion is
created it is an independent force,
tant

Bank

Detroit, Mich.

country,

their studies
on Sears Roebuck in Mexico, Casa
Grace in Peru, the Sun Life Insurance investment in the Philippines, and
the Jersey affiliate,
Creole, in Venezuela: In reading
these studies one becomes aware
of a contribution of the foreign

Governments

a

the Michigan Bell Telephone

training school to provide
for its own installations in

Earlier

given

*

John S. Coleman, President of
Burroughs Corp. and William M.

simoly with the handling
of petroleum. It had sought to advance the health of its employees,
As a result it had set up an adnurses

*

it

concern

itself

vanced

were

issue of June 28, page 3086.

our

*

lowing the long run participation ties and revenue from sales and
of private equity
investors, then leases on lands for oil and gas expossibly other steps will be taken ploration and development. Much
toward lowering the barriers of this had been invested
by in-

the

quote

more

active seeking of credits from
pri-

government

me

the

foreign
suppliers
and
of
technical assistance contracts with

ism and corruption in administra¬
tion.
To give but one example

from

of

some

vate

the Economic-

on

of

case

nations,
a
hopeful
trend.
In some places the first
steps have been taken toward the

functions, the extent of freedom in
Report to appear with three others the foreign exchange market, and
the degree of avoidance of favorit¬
as a panel to discuss the
present
Joint Committee

the

xenophobic

tection of individual
freedom, the
level of attainment in
efficiency

invited

was

i

flew

governments
have
in
the
past
failed in their obligation—an obligation both to their own citizens

compon¬

country's

particularly Among these components are the
needed is the general extension
degree of continuity and stability
of the last two features to the in
government authority, the ex¬
income from other types of in¬ tent of internal
security and pro¬
Last

months

publishing the first estimates of
gross investment that study will
also treat statistically the contriclimate there are
and to the citizens of the rest of
bution made by U. S. investors to
of
government performance which the world—to make the best use
the employment, production, and
are of such broad influence
as to
f of the physical and human reexports of the area. It seems likejustify strenuous efforts for im¬ sources
under their command.
ly to me that this will prove to be
provement even aside irom their
One can discern,
however, everrra useful educational effort. The

Among the important

ents

as

ments

News About

interesting example, it was front-"
news
in Argentina a few

-P

r

tion in the rate of U. S.

15

page

page

abie to make the nurses available

few

a

which

stake in
the company's investment. As an

nurses

still

from

31

the public their

the

Yet

Continued

of action and
designed
to
bring

programs

the

as

discrimination

abroad

training center in the North of
the country down to Buenos Aires
to relieve the critical shortage of

present.

the
policies of governments in
foreign areas could prevent the
Hemispnere meet¬
inflow of private capital into those
restrictive conditions

entitled to

benefiting at
foreign participation

manufacturing

in the Western

are

still

are

extractive

disease

perfect in the U. S., and in

other

Would

we

from

competition in investment in

the

be

time,

Fortunately such

.

against
investors
from abroad is not
frequent in
the U. S., so far as I know. While
the U. S. is the
largest exporter of

proper

a

investment

the

At

of

course, it is recognized that
if
government
treatment

investment

income

income

home to

but
discrimination

a

in the

flow

the

income

on

of

needed

al¬

reduce

the

on

publication

tion,

the

was

are

of

state. The old attitude of "we believe in
competi-

services

branch engaged in
same business in Mexico.
..Some day, maybe next year, the

certain

Commission

unmindful

ready;

tax

income

United States tax burdens and in¬

equities."

brewery in the

certainly

the

subsidiary in, say, Mexico but
imposes a high U. S. tax on the

government

inducement to foreign

an

can

of

more

which make economic
activity se¬
cure.
There is
something wrong
with a system which
imposes no

importantly,

Commission

in Canada, where the

say,

government

provide

/

Tax Burdens and
Inequities

P

earned,
local

(707)

you

good luck in

Seattle, Wash.

of

The Commercial and

32

Continued
Chronicle)

(Special to The Financial

DETROIT,
staff

Our

Mich.—Joseph Sam-

been added to the
Paine, Webber, Jackson

has

ulowicz

of

With Suburban Sees.

J. Potokar is now

Securities

Chronicle)

Ohio — Edward
with Suburban

CLEVELAND,

—

Co., 732 East 200th St.

Joins Samuel &

the boom

Thursday, August 16, 1956

keen

The

ever.

as

&

Samuel

of

staff

went about as

Last

raising operation of the Treasury
though short-term rates have been

expected, even

Robert S.

joined

Engler

the

Com¬

Now With Vercoe

though the inflation pressures here are

MANSFIELD, Ohio —David

connected with
Farmers
Bank

now

Vercoe

Co.,

&

L.

Building.

...

Form United Investors

has

been

Mile High Center, to
engage
in a securities business.
Officers are Floyd Marks, Presi¬
dent; Harold M. Quiat, Vice-Presi¬
dent; and Lars O. Prestud, Secre¬
Building,

tary-Treasurer.
Stanford

McMillan,

L.

H.

Morris O. Thedford
with

Edwin A.
Neff and

are

associated

Hyman,

Ernest

reception,

DENVER,' Cold.

—

Wiliet.R.;

-

securities business.

Mge't.

(Special to The Financial Chronicle)

*

ENGLEWOOD, Colo. —Western
States

Co. has

Management

formed

with:., offices

at

Hampden to engage in
business.

Officers

a

been

333 East
securities
Robert

are

J.

Giesen,
President;
William,
B.
Chenoweth, Vice-President; and
Ross

Gregory,
Mr.

Treasurer.

Gregory
nold

and

Jr.,

Secretary-

Giesen

and

Mr.

According

orders.

Street, New York City, to

engage in a

securities business.

offering of

was

and
1

were the principal
certificates because they had

corporations

reports,

to

buyers of the recently offered tax
funds available for such an issue.

material reduction in backlogs and carryovers.

Meanwhile, producers

appears

to

are

sizable and broad..^ On

market for these issues continues to be

the

.0. \

,<

few
money market specialists as well as investors is the 2l/z%
due
11/15/61. It is being pointed out that this issue is at levels which
have appeal for those that are interested in a good return, with £\
not too long a maturity. This obligation, by the 15th of Nov., will
It is reported that there has been
going on in this security and it would not
be surprising if this were to be stepped up, with any change in
money conditions, whether they be favorable or otherwise.
Some
of the near-term government securities, according to advices have
been sold, and the proceeds have been reinvested in the 21/£s of
be in the note classification.
a

1961.

.»

from

other

investment

of

forms

|

continues

to

It is reported that insurance companies have been sellers

buying.

sizable amounts. This
thin and very inactive
marekt has tended to have an unfavorable effect upon prices of
these obligations.
The issue which was reported to have been in
for a certain amount of selling recently was the 3J/4% due June
15, 1978-83.
of the longer Treasuries in not too

some

kind of liquidation, however,

in this

very

the most distant Treas¬

is

also

indicated

that

fair

a

of

amount

the

of

these

in

in

tax

being

It is reported that the

exempt obligations.

funds

excess

of

are

seven

being invested in issues with

bulk

Switches
very

narrow

continue

and

a

maturity not

to

supply

uncertain

fair

a

market.

amount

There

at

this time.

and

more

of the

It is

evident that

is,

of

activity

however,

no

to

as

we

go

purposes

into the closing months

-'■'■J.-

year.

-

45 Milk

9l

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6461




of steel
was

WHITTIER,

Calif.—-James

although there

Attarian, George R. Dufcy, Charles
N. Groutage, Monroe E. H'rschy,
Bert L. Sharp, and Raymond H.
Smith are now with J. D. Creger
& Co., 124 North Bright Avenue.,

been

Colo.

—

and Melvin D\

added

Investment

Street.
.

first

week

to

Company,
i

James

Miller have

staff

the

i

j

Allen

of

1334 Pearl
-

i

^

after

the

strike

(week

25), national

for

was an

Despite the strong demand for steel,
up to 97% until four months later

immediate recovery to around 93%.

risen and will be steady

while, the "Steel" asserts that demand will reflect only the
consumption. The price increase, averaging $8.50 a ton or
6.25%, falls short of what was expected. To help offset increased
costs, extras may be raised as they were last year when the base
price increase was only $7.35 a ton or 5.8%.
a

needs for

.

The

posite

being reflected in "Steel's" price com¬

were

finished steel. In the week ended Aug. 8, it reached
a $6.48 rise over the preceding week's level.

on

$137.75

prices

new

net ton,

a

Smaller
average of

firms

$9

a

the strike raised prices an
getting in line with Big Steel,

during

operating

ton.

They are

now

The metalworking authority said that increased steel prices

•k

will cost

metalworking eompanies $275,000,000 to $300,000,000 this
figuring that about 35,000,000 million tons of finished steel
It estimated
the cost of steel in a $2,500 auto is increased $14 by the price

products will be shipped between Aug. 7 and Dec. 31.

Increases in steel's base

than
16

this

cents

price in 1957 and 1958 will be lower

year's because the labor package will cost less

an

are

The

in a $2,400 farm tractor,

hour).

(about

Best guesses for price boosts in the next two

between $6 and $6.50.

nonferrous

metal

market

is

being affected by the Suez

situation, according to "Steel." It reported that tin and cooper
prices especially are feeling the effects of Egypt's seizure of the
Suez Canal.
Tin prices are hovering near the $1 a pound mark.
scrap

the

week

In

prices continue to reflect expected strong
ended Aug. 8 "Steel's" steelmaking scrap

price composite moved up to $54.83 a gross ton, a $1.63 increase

C.
Ganter, John J. Kablev. Galen T.
BOULDER,

Leach

the

Now that base prices of steel have

\

demand.

(Special to The Financial Chronicle)

N.

in

at 52.5%* of capacity

Steelmaking

All en Inv. Adds Four

Join J. D. Creger Staff
(Special to The Financial Chronicle)

231 So. La Salle Su

12)

Aug.

production couldn't get back

a

par¬

AtJBHEV G. Lanston

ST., NEW YORK 5

--»■

broken.

day strike shut down mills.

years

these swaps are for tax

of them will be made

were

boost; in a $300 refrigerator, 95 cents;
$6.50.-

Swaps Under Way

ticular pattern discernible as far as these exchanges are concerned

WHitehall 3-1200

•

Just before the strike started (week ending June

that

years.

Tax

15 BROAD

•

ingot production was at 95.5% of capacity (2,351,108 net tons), a
point and one-half below where it was a year ago before the one-

year,

-

a\

(1,292,494 net tons), a
jump of 33 points over the preceding .week when only the unstruck capacity was in operation.

which

money

invested in the 2%s of Sept. 15, 1956-59, and which are

work

to

& Co.

u

complicated by the question of how
long it will take mills to get back into operation, according to
thn they had a yeari ago.
It believes steel consumption the rest
this national metalworking publication.
ended

Group Ignored

plague long-term government securities and, in spite of new
yearly lows in many cases, these issues have not yet reached
levels where they are attracting more than a modest amount of

was

records

s

,,

Government Bonds As

of

when

Production

,

paid off by the Treasury the middle of next month, is being put

INCORPORATED

»

The problem of supply is

bond, the 3% due Feb. 19, 1995', has been fairly well taken
by public pension funds. These purchases, according to advices,
have been made mainly on a scale basis, and even though they
have not been too large, they have tended to cushion somewhat
the decline which has been going on in this bond.

?

**<

Steel demand will outstrip production the rest of this year,
according to the magazine "Steel." It said orders kept' coming in
while consumers lived off inventories during the five-week strike.
This metalworking publication reported that producers of du¬
rable goods have an order backlog 18% greater in dollar volume
than they had a year ago.
It believes ££eel consumption the rest
of this year should exceed that of the corresponding period of
1955

fair amount of buying

It

SECURITIES

<•

Magazine "Steel" Reviews Steel Industry Situation

obligation that is presently being watched by not a

The

On the other hand, it is indicated that

PUBLIC REVENUE

much—or more—than his protege, Dave

leveling-off is not yet in sight*

though some off-hand attention is being
given to certain of the intermediate term issues by those that
have funds for investment, or will have in the not too distant

ury

and

as

other hand, it appears as

U. S. TREASURY

STATE, MUNICIPAL

ask for

to

McDonald, got for the steel workers. Mr. Lewis has the power to
shut dpwn the. steel industry's captive mines to enforce his de¬
mands. At any rate, higher coal-producing costs are a certainty.
Markets generally continued to advance and the expected

the usual small interest
obligations, except for the nearstill the most active .ones because the

be not more than

around for most 'of the Treasury

which

concerned over the ominous silence
Mine Workers. Mr. Lewis

are

of John L. Lewis, leader of the United
is certain

Treasury 21/4s of 1961 Attract Interest

Competition

fourth

even those consumers who went into the
The position of structural
is critical.
To make matters worse, producers are running into melting

shortened

tons

walkout with comfortable inventories.
and plate consumers

Efforts to replenish shortages and rebuild inventories will
keep the steel production rate at high level for balance of the year
and beyond.
It will be late in the year before mills can effect

formerly with HonCo., Inc.

Amlyn Services has been formed
with offices at
15
West Forty-

on.

October, when the Treasury came to the market with an eightmonth 2*4% tax certificate, the allotments were 32% on the large

were

Amlyn Services Formed >'■'

counted

rolling maintenance problems.
/
Despite all the problems growing out of the strike, production
this year will equal the 111.6 million tons produced in 1953, but
will be far short of last year's record 117 million tons.

future.

Form Western States

walkout, mills had accepted orders for export to

U. S. producers will be hard-pressed to
domestic consumers. The strike loss of 11-12 million

accommodate

billion (at 2%%) of new money which the government
was interested in borrowing at this time.
Accordingly, allotments
were made on a 29% basis in the case of large subscriptions.
Last

term maturities

'ty. (Special to The Financial Chronicle)
Plankinton has opened offices at
1602 S. Quitman Street to engage

Europe.

with the $3

with

*

'

metalworking weekly, states in its

an

not get the steel they had
In the v/eeks ahead,

considered to be "very good,"?
subscriptions amounting to' about $10.6 billion compared

There

Opens

announced that the

expected letdown in third quarter. The strike knocked
their calculations into a cocked hat and European consumers will

bolster

Certificates

which was given to the Treasury

anticipation certificates

the firm's staff.

Walter Plankinton

a

The
tax

offset by a similar

or

The "Iron Age," national

ingot

with

formed

$408,300,000,000,

area, including
Before the

bring

the rear, because more favorable income can be obtained in,
non-government investments. In spite of the lack of interest in the
aforementioned issues, a modest amount of buying is being done
in these securities, with public pension funds and small institu¬
tional investors making commitments in selected obligations of
the most distant and middle-term governments.

DENVER, Colo.—United Inves¬

Inc.

;

up

Good Demand -for-New

offices in the U. S. National Bank

Monday the Commerce Department

from

"
seasonally-

total

in

Wednesday release that steel ingot production moved to within
shooting distance of pre-strike levels this week. But the effects
of strike losses will be felt for months to come and over a broad

also very strong.

long-term securities continue to

intermediate and

(Special to The Financial Chronicle)

tors,

Canada increased

12 months, the Bank of

upping it from 3% to
to the highest
level on record. This latest move is another attempt to curb the
inflationary trends in Canada. The increase in the bank rate by
our neighbors to the North is not expected to result in a further
increase in the discount rate of the Federal Reserve System, even
The

$100,000,000

output rose to an annual
$5,000,000,000 above the first 1956 quar¬
ter and $21,000,000,000 above the same period last year.
The
Commerce analysis attributes at least half of this year's quarter
increase to rising prices, rather than a boost in the "real volume
of production."

the Central Bank rate,

(Special to The Financial Chronicle)

jumped to $20.9 billion at the end of June

reports that the April-May-June quarter

rate of

ZlA%

Canada's Central Bank Rate Now

16 East Broad Street.

McGinty is

j

purchasing power of the U. S. consumer made an all-time peak
rate in June, a period when the value of goods and services pro¬
duced attained their highest record.
The Commerce Department

money

new

For the fifth time in

pany,

vi-.". ."Vi"*! .-"■■Av/!y"'iVv

4

adjusted wholesale stocks, the report said, was
decline in the book value of retail inventories.

psychology, which means that the pressure which has been on the
money market is not being lifted under prevailing conditions.
The
demand for money is showing no signs of abating and this indicates
the competition for the available supply of loanable funds is as

Engler

—

has

Sr.

Dingledine,

page

$20.4 billion a month earlier.
An increase of less
than

doldrums,

government market is not only in the summer
it is also continuing to labor under the influence of

(Special to The Financial Chhonicle)

COLUMBUS, Ohio

from

of these stocks

tending upward.

:

.

The State of Trade and Industry

Governments

on

CHIPPENDALE, JR. \

The

but

(Special to The Financial

Reporter
By JOHN T.

Si-

monds & Co.

in

.

''

He

Curtis, Penobscot Building.
formerly
with Baker,

was

'

.

Adds

Paine, Webber

&

Financial Chronicle

(708)

•

over

that of the
The

preceding week.

American

Iron

and

Steel

Institute

announced

operating rate of steel companies having 96.1% of the
capacity

for the entire industry was scheduled

that the

steelmaking

at an average of

85.5% of capacity for the week beginning Aug. 13, 1956, equiva¬
lent to 2,106,000 tons of ingot and. steel for castings as compared

Volume

184

Number 5560

..

The Commercial and Financial Chronicle

.

(709)
with

57.5% of capacity and 1,415,000 tons

(revised)

when most of the
country's steelworkers were
The industry's ingot production rate for

is based

on

annual

the

capacity of 128,363,090 tons

a

week

Purchasing

ago,

strike.

on

in

1956

and

1, 1956.
For the like week a month ago the rate was
15.3% and pro¬
duction 377,000 tons. A year ago the actual
weekly production
was placed at
2,176,000 tons or 90.2%. The operating rate is not

U. S. Car

of Jan.

as

For Model

•

„

"Ward's."

Last

car

output dropped below that

<

upholstered living
continued to fall.

a

year

and

1,970 trucks, and for the

and

819

placed at 4,090 cars and 1,646
Dominion plants built 7,103 cars

was

comparable

1955

week,

2,306

cars

Electric Output

increase of 340,000,000 kwh.
It increased 801,000,000 kwh.

comparable 1955 week and 2,534,000,000 kwh.
in 1954.

above

that

7.5%

or

over

of

the

31

will

issued

=

Loadings In the Final Full Week of Steel Strike
Advanced 1.6% Above Week Preceding

warrants
of

Loadings of

revenue freight for the week ended Aug. 4, 1956,
affected by the fifth and final full week of the steel
strike increased 10,481 cars or 1.6% above those of the
preceding

which

were

week.

v:

:

-

Loadings

for the week ended Aug. 4, 1956, totaled 660,287
cars, a decrease of 100,000 cars or 13.2% below the
corresponding
1955 week, and a decrease of
7,305 cars, or 1.1% under corre¬

sponding week in 1954.
Business Failures Down
Commercial
week ended

&

and

failures

declined

to

229

in

the

1954.

certificates
warrant

week's
ago.

of

largely due to the expected short cropi

exercisable

failures

more

were

involved

in

190

of

compared with 234 last week and 139 a year
Small failures, those with liabilities under $5,0.00 decreased

previous week, but exceeded the 30 of this
occurring in the similar week of 1955., Twenty-seven busi¬
failed with liabilities in

ber

a

as

excess

of

$100,000, the

to

28 from

42, and commercial service to 15 from 23. All of the

increase from the 1955 level

and

The

was

additional

47,300,000

^

the year.

.

twice that of last year.
In their trade review
Bradstreet

the following manner.

of

the

week

retail

summarizes

and

wholesale

ending Aug.
trade

10

almost

Dun

&

conditions

in

*

'

Retail

Trade

Rises:

Continued

cool

weather

and

new

automobiles

fell

somewhat.

Total

retail

trade

numerous

expanded

noticeably, and moderately exceeded that of the similar week

a

year ago.

Consumer response to the August furniture sales

was

notice¬

ably higher than that of last year, with substantial gains reported
bedding, modern dining room sets, and upholstered chairs.
Volume in linens, blankets, and towels rose considerably.
There
was
a
continued decline in purchases of air conditioners and
in

electric

fans,

and

sales

remained

under

comparable

year

ago

levels.

Apparel stores reported an upsurge in consumer purchases
of children's Fall clothing; sales of girls' skirts and boys' jackets

considerably.

Shoppers

stepped up their buying of
women's sweaters, Fall dresses, and blouses; popular accessories
were scarfs, millinery,
and jewelry. The call for fur coats was
higher than that of the corresponding 1955 week.
expanded

* '

r

^

/

v;

ble

capital

its

and

expanding
\

leading

a

;

manu¬

industry, building its
engines, clutches, transmis¬
sions,
axles,
housings, carriers,
axle shafts, cabs, and other comown

■

Cocoa prices were

;

cocoa

fairly steady throughout the week.
continued to mount and

now

debentures

Net

1956
v

at the close.

active

Swine receipts for the week

were

The

price-fixing and short covering which
absence of any particular hedging pressure.

Also

with

tending to support values

week's increase.

was

recorded.
was

For

the

1956, the index recorded
sponding period in 1955.
The sharp

increase

department sales

ago

threatened

four

'

was

were

weeks

ended

rise of 4%

above

Aug. 4, 1956, a
1, 1956 to Aug. 4,

that of the

corre¬

attributed to the fact that the
less for the

reason

that

the

city

the

Reserve

on a

Board's

Nandor
•j

country-wide basis

index

of

the

week

as

taken from

ended

Aug.

4,

meat, poultry, and eggs fell somewhat, but yolum^ in butter and
cheese was sustained at a high level.
*
.1- '.
'' ''
V

reported. For the period Jan. 1, 1956 to Aug, 4, 1956,
4% was registered above that of 1955.
"

the

four

weeks

in

a

Schatz

securities business.
is

the firm.

principal

a

/

of

V

-

Benjamin Co. Branch
BATON

ROUGE, La. —Benja¬
Company has opened a
in
the
Reymond
Building under the direction of
min

&

branch

ended.Aug. 4,

1956

office

New Gardner Branch
NEWTON, N. J.—W. A. Gardner
& Co. has opened a branch office
at 53 High Street under the man¬
agement of L. Gordon Miller.

MEMPHIS, Tenn.—B. C. Morton
& Co. has opened a branch office
at

2717

an

increase

of 3%
a

was

gain of

Union

Avenue

under

the

direction of Nicholson B. Perkins.

1956, increased 7% above those of the like period last year. In the
preceding week, July 28, 1956, a decrease of 1% was reported.
For

formed

New Morton Branch
was

by hurricane "Connie" and shoppers stayed at home.

Federal

has-been

year

'

Department stores sales

Investors

with offices at 63 Pleasant Avenue

Thaine H. Walden.

For the period Jan.
a

/V.;-

PASSAIC, N. J.—The Conserva¬
tive

the issuance

was

\

recorded.

1955.

.

of two unexpectedly low private crop

gain of 7%

of

Conservative In v.

to engage

According to the Federal Reserve Board's index, department
store sales in New York City for the weekly period ended
Aug. 4,
1956, registered an increase of 12% above those of the like period
last year. "
In the preceding week, July 28, 1956, an increase of
2%

,

an

during the
estimates. Reported
purchases of cotton in the 14 spot markets last week totaled 187,600
bales, against 605600 the previous week and 72,400 a year ago.
Cotton purchased under the export program accounted for most
of the

30,
$126,610,000, com$83,737,000 for the
1955 period.
Net income

with

months

.

better tone

met

Demand was also influenced by less favorable crop advices and
by reports from the South indicating the development of a hold¬
ing movement by growers.
■- 'V-' -. --/1,
'//•.
week

for

June

totaled

pared

six

Cattle receipts were also larger, than a week ago
but good demand held values up.
-

Spot cotton prices turned firmer last week.

Trucks

ended

the largest

in several weeks.

reflected

Mack

months

for the 1956 first half was $5,754,000, against $3,292,000 in the first

only fair; prices were irregular and slightly higher
Hog prices advanced in closing sessions as the result

bidding.

are

also redeemable at

are

sales for

similar

This was a gain of 10,388 bags over a week ago and com¬
pared with holdings of 249,000 bags at this time last year. Demand
was

y

,

optional redemption prices rang¬
ing from 105V2% if redeemed prior
to Sept. 1, 1959 to 100% if re¬
deemed on or after Sept. 1, 1967.

bags.

for lard

'•%

The debentures

Ware¬

total 436,275

\

*
;
subjected to
a
sinking fund, commencing on
Sept. 1, designed to retire the en¬
tire issue. The initial sinking fund
retirement
price is 102%.
The
ponent parts.

the; six

While sales of frozen foods and fresh produce mounted ap¬
preciably this week, the call for canned vegetables, fruit, and
fish was moderately reduced.
Housewives' purchases of fresh




be

in the truck

'

shipping delays.

;

August sales promotions spurred consumer buying of back-toschool apparel, linens, and furniture this week. Automobile deal¬
ers reported a marked rise in purchases of used cars, but sales in

finance

Mack Trucks is

.

of

was

working

to

business.

Green coffee prices edged upward toward the close,
reflecting
buying by roasters to build their inventories in advance of possi¬

States to 49 from 76.

peared in the Middle Atlantic Region, where the toll

will

facturer of trucks ranging in gross

a year ago.

house stocks of

However, the East North Central toll edged
up to 41 from 38, and the East South Central to 9 from 4. Despite
the week's decline, failures equaled or exceeded last year's level
in all areas except New England. A noticeable rise from 1955 ap¬

to Advance

end, the latter selling at 5.65 cents, ex-duty, the highest level of..

concentrated in retail trade and

among

debentures

Proceeds from the sale will be
used to provide Mack Trucks with

The refinedi and raw sugar markets were firm at the week¬

manufacturers held even with last
year while service and wholesaling lines dipped below a year ago.
All except two of the nine major geographical regions re¬
ported a decline. Failures in the Middle Atlantic States fell to
77 from 89, in the South Atlantic to 19 from
29, and in the Pacific

construction; the toll

be

1,1956 and will mature
Sept. 1, 1968.
*/

crop

same num¬

week ago.

All industry and trade groups reported a decline in failures
during the week. In retailing, the toll dipped to 133 from 135, in
wholesaling to._22; from 25, while somewhat sharper declines
brought manufacturing failures down to 31 from 57 construction

will

on

1959 : at

1966.

Cash corn was quite steady.
Buying by processors was not
aggressive but continued light offerings acted as a firming influ¬
ence.
Trading in grain and soybean futures on the Chicago Board
of Trade was less active the past week.
Daily average purchases
totaled about 45,300,000 bushels against
62,800,000 the week before,

the

as

nesses

war¬

15, 1957.

dated Sept.

at 1,144,000,000 bushels, which if realized, would be the
smallest yield since 1943.
J

to 39 from 48 in the

size

Feb.

certificates

or
before
Sept.
$40 per share and
at ascending prices up to
Sept. 1,

1,

The July 1 report of the Department of Agriculture placed

%
the

year ago, they dipped slightly below the 233
Was down 9% from the pre-war level of 252
or

warrants

•

a

$5,000

The

on

be

shares

;

in 1939.
Liabilities

five

vehicle weight from
16,000 pounds
index,
to over 136,000 pounds. The heavicompiled by Dun & Bradstreet, Inc., rose to 291.42 on Aug.
7, as V
; est trucks, in which the firm spe¬
compared with1288.96 a week earlier and with 275.18 on: the cor¬
cializes, are engineered and con¬
responding date a year ago.
■"
1
f
;
structed to the particular require¬
Graihnhiarkets continued irregular with trading activity down
ment;? andwork
abuse,'pf the
/rather sharply from a week
ago.
There was a steady undertone
industries in which the are em¬
to wheat as country
selling diminished and prospects for export
ployed. They are not produced on
sales remained bright.
Export clearances of wheat during July
a mass-volume basis.
■■"/
were reported at about
37,000,000 bushels as against approximately
The company is one of the most
26,000,000 bushels in July, 1955. Oats continued to show strength
highly integrated manufacturers

Aug. 9 from 282 in the preceding week, reported Dun
While failures remained above the 169 in the

The toll

stock.

will

ten-year

*

exchangeable for separate

The

The general commodity price level showed a further
moderate
uptrend last week. The daily wholesale commodity price

Bradstreet, Inc.

comparable week
in

industrial

purchase

rant

raw

Commodity Price Index Continued
Moderately the Past Week

attached

to

common

are

food

.

3:30

'

debenture

with

funds

Car

at

$500

Subscription "
The rights !
p.m.; EDST,'
/ / ;
1
;

unit.

per

expire

Each

as

Wholesale

par value.

issue, which

Aug. 30, 1956.

foodstuffs and meats in general use and its chief
function
is to show the general trend of food
prices at the wholesale level.

the like week

stock, $5

price is $500

.

above the

an

shares of stock held.
■'

hams, bellies, lard, butter, sugar, coffee, tea, raisins, steers and
hogs. Lower in price were corn, rye, barley, eggs and potatoes.
The index represents the sum total of the
price per pound of

Electric Institute.
an

$6.10

offering

a rights basis in the ratio
of $500
principal amount of debentures/
($500 minimum units) to each 50

price index rose moderately last week to stand
of Aug. 7. This compared with $6.08 a week earlier
and marked a drop of 2.2% from the
year-ago level of $6.24. •
Higher in wholesale cost this week were flour,
wheat, oats,

at

is

is being un¬
derwritten by a group headed
by
Dominick
&
Dominick, will be
made to common stockholders
on-

were^ slight decreases in the purchasing of fresh meat,

wholesale

Slightly Higher in Past Week

The amount of electric energy distributed by the electric light
and power industry for the week ended
Saturday, Aug. 11, 1956,
was
estimated at 11,530,000,000
kwh., according to the Edison
,

to

The

Wholesale Food Price Index Edged
Higher in Latest Week
After holding steady the previous
week, the Dun & Bradstreet

trucks.

was

mon

chairs, and

Purchases of lawn tables and chairs
Buyers increased their orders for television

poultry, and dairy products this week. Volume in fresh
produce,
frozen foods, and canned
goods was close to that of the preceding
week; the buying of rice, coffee, and sugar improved somewhat.

ago.

Canadian output last week
trucks. In the previous week

This

v';

orders

moderately;

There

previous

previous week.

scribe-

flannels, corduroys, and velvets expanded appreciably.
Except for moderate decreases in cotton twills and
ducks, transactions in cotton grey goods were sustained at the
previous week's
level.

assembled.

were

Inc.

aggregate of $19,109,000, 5V2% subordinated deben¬
tures due 1968, with warrants
to
purchase 191,090 shares of com¬

room sets.

volume in

Offering

Trucks,

today (Aug. 16) rights to its stock-,
holders of record Aug. 15 to sub¬

sets,
radios, and lamps, but the call for air conditioners and fans was
preceding week and a year ago.
?.
While textile buyers boosted their purchases of carpet wool
this week, trading in woolens and worsteds
declined

Last week the agency reported there were
19,584 trucks made
States. This compared with 20,764 in the

23,491

•••;•

■

Mack

below that of both the

of the previous

in the United
and

Trucks

^

23,491 trucks

week

Underwrite Mack

week,

//■'■/v-

week by 3,219 cars, while truck output declined the
past week by
1,180 vehicles. In the corresponding week last year 149,199 cars
and

this

Wholesalers reported a considerable rise in
furniture
this week; best-sellers were bedroom
suites, occasional

-

week's

Dominick & Dominick

and most deliveries were behind schedule.
Bookings in women's Fall coats, dresses, and skirts
expanded
somewhat, while interest in cotton dresses and beachwear de¬
creased moderately.
Volume in lingerie and blouses was sus¬
tained at a high level. The
buying of children's Fall clothing im¬
proved noticeably, with considerable
gains in boys' sport shirts
and slacks.
?: ?; .V.-,-v
■

Changeovers Set In

Automotive output for the- latest week ended
Aug. 10, 1956,
according to "Ward's Automotive Reports," dipped again due to
shutdowns for model changeovers.
1
^ k '
:Last week the industry assembled an estimated
107,933 cars,
compared with 111,152 (revised) in the previous week. The
past
week's production total of cars and trucks amounted to
127,517
units, a decrease of 4,399 units below the preceding week's output,
states

for

trade

reported

Shutdowns

as

orders

remained at the level of the
previous week, it mod¬
erately exceeded that of the similar week last
year.
An upsurge in re-orders for
women's woolen sweaters was

1, 1955.

Output Declines in Latest Week

some

sale

comparable because capacity is higher than
capacity in 1955. The
percentage figures for 1955 are based on annual capacity of

125,828,310 tons

Slight increases in wholesale

Fall apparel this week
by* volume .reductions in food, products, air
coolers,
textile lines.
Although the total dollar volume of whole¬

offset;

were

of Jan.

as

Steady:

furniture, television sets, and children's

weeks

33

Ernest M. Horch
Ernest

Freres

&

M.

Co.,

passed away.

Horch

New

of

Lazard

York

City,

The Commercial and

Financial Chronicle

.

Thursday, August 16, 1956

(710)

34

* INDICATES

ADDITIONS

SINCE

in
Co.

Able Mining

"

.

notification) 300,000 shares of common
Price—$1 per share. Proceeds—
For mining expenses. Office—7119 E. Camelback Road,
Scottsdale, Ariz. Underwriter—The Fenner Corp., New

July 2 (letter of

(par five

stock

postponed.

cents).

York, N. Y.

Colo.
notification) 3,000,000 shares of com¬

stock (par one cent). Price—10 cents per share.
Proceeds—For mining expenses.
Office—319 Uranium

mon

Underwriter—Ralph M.

it Allen

of common

New York
; /g.- ••
amendment) 238,000 additional shares
stock. Price—At market. Proceeds—For in¬
Horse Racing

American

•

■

-V

Brown

v.;-;

Inc., Seattle, Wash.

Stables, Inc.

One stock¬

Honolulu, T. H.

Investment Co., Ltd.,

of the management type. V
Burma

Shore

Mines,

\

Underwriter—None.

,

^

Ltd., Toronto, Canada;

which

600,000 shares of capital stock, of

July 26 filed

500,000 shares are to be offered publicly, and 100,000
shares to promoters. Price—At par ($1 per share). Pro?For equipment, exploration, drilling, working
capital and other general corporate purposes. Under¬
ceeds

Vo. (8/23)

Atlantic Oil Corp., Tulsa,

(letter of notification) 3,000,000 shares of com¬
Price—At par (10 cents per share). Pro¬
ceeds — For organizing and operating a racing stable.
Office—Virginia and Truckee Bldg., Carson City, Nev.

—

writer—To be named later.

it Burroughs (J. P.) & Sons, Inc.
1
July 31 (letter of notification). 4,166 shares of common
stock (par $1). Price—At market (estimated at $5.87^

& Hutzler arid

per

Okla.

share). Proceeds

To go to Charles A. Fellows.

—

Mich. Underwriter—
Stout & Co., New York 4, N. Y.

Office—625 West Second St., Flint,

April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For working capital
and general corporate purposes.
Underwriter — To be

stock.

*

July 11 filed 60,075 shares of common stock. Price—To
be supplied by amendment.
Proceeds—For investment,
Business—A diversified, open-end investment company

:

'

ing capital. Underwriter—Salomon Bros.
Lehman Brothers, both of New York.

;

May 11
mon

•'

/.

Associates Investment

(by

vestment.

-

Aug. 2 filed $50,000,000 of debentures due Aug. 1, 1976.
Price—To be supplied by amendment. Proceeds—To re¬
duce short-term notes due within one year and for wprk-

(Leon B.) Fund, Inc.,

14 filed

-

Underwriter—None.

Center, Grand Junction, Colo.
Davis & Co., Grand Junction, Colo.

Aue

•

of common stock; $2,000,000
of 25-year 5% registered convertible debenture notes; /
and $1,500,000 of 5% coupon bearer bonds. Price — Of
stock. $50 per share; and of notes and bonds, 100% of ;
principal amount. Proceeds—To reduce bank, mortgage .
loan, or other indebtedness; and for working s capital.

A

Feb. 23 (letter of

'

ISSUE
r-

agreed to purchase any unsubscribed shares.

holder has

April 20 filed 5,703 shares

Inc., Grand Junction,

Abundant Uranium,

r

Associated Grocers,

REVISED

Underwriter—F. Eberstadt & Co., New York.

ing capital. Office—West Haven, Conn. Underwriter—
Reynolds & Co., Inc., New lorx. Offering—Temporarily

.

ITEMS

•

PREVIOUS

Eisele & King, Libaire,

Denver, Colo.
*
*,
notification) 600,000 shares of common
Price—50 cents per share. Proceeds
—For
equipment, payment of current liabilities and
working capital. Office—2450 Kendall St., Denver, Colo.
Underwriter—Wayne Jewell Co., Denver, Colo,
it Cadwell Mining Co.,

Aug. 13 (letter of

named by amendment.
Underwriter—Columbia Securities Co., Inc. of California,
Beverly Hills, Calif.
/
Atlas Consolidated Tungsten Mines,' Inc.
American Insurors' Development Co.
July 16 (letter of notification) 300,000 shares of capital
Feb. 10 filed 400,000 shares of common stock (par $1).
stock. Price
At par ($1 per share).
Proceeds — For
Price
$2.50 per share. Proceeds —To expand service
working capital, etc. Office—312 Byington Bldg., 15 W.
business.
Office — Birmingham, Ala.
Underwriter — if Second St., Reno, Nev. Underwriter—Sterling Securities
Odess, Martin & Herzberg, Inc., Birmingham, Ala.
Co., Los Angeles, Calif.

stock (par one mill).

—

„

—

^ American
Aug. 10 filed
ment Plans.

Investment & Income Fund, Inc.
$18,062,500 of Systematic and Single Pay¬
'

Corp.,

Investors

American

Nashville, Tenn.<

•

July 13 filed 4,962,500 shares of common stock (par $1),
of which 962,500 share are to be reserved for the exercise
of
are

options by company employees and
to be offered publicly. Price—$2 per

purchase all of the common stock
vestment Life Insurance Co., to be

—To

Underwriter—None.

Tennessee law.

4,000,000 shares

share. Proceeds
of American In¬
organized under
>-* • '

*

Seal-Kap Corp. of Delaware

American

Aug. 7 filed 160,000 shares of common stock (par $2) to
be offered for sale "to a small number of persons who
will acquire the same

for investment only."

Price—To

be supplied by amendment. Proceeds—To retire demand
notes and for general corporate purposes/ Office—Long
Island City,

L. I., N. Y.

Underwriter—None.

it Aquafilter Corp. «►*.•/. •.;» # •
July 2 (letter of notification) 50,000 shares of common
stock (par 1C cents) to be offered to two individuals.
Price—50 cents per share .
Proceeds—To Herman L.

Park Avenue,

Shaw, President of company., Office—270
New York, N. Y. Underwriter—None.
'

Arden Farms Co., Los Angeles, Calif. >
$4,099,300 of 5% subordinated

;

June 15 filed

"

.

debentures

July 1, 1986 (convertible until July 1, 1964); and
63,614 shares of common stock (par $1); The debentures
are being offered for subscription by' preferred
stock¬
holders at the rate of $10 principal amount of debentures
due

Ltd., Calgary, Alta., Canada
June 29 filed 71,363 shares of 6% cumulative redeemable
preferred stock (par $50) and 1,069,231 shares of common
Atlas Credit Corp., Philadelphia, Pa.
stock (par $1) bein<? offered in; exchange for the out¬
June 11 filed $600,000 of 6% convertible subordinated
standing stock of Husky Oil & Refining Ltd. on. the
debentures due June 15, 1968. Price—100% of principal
following basis:. One share of Canadian Husky common
amount. Proceeds—To retire indebtedness of the com¬
for each Husky Oil common share of $1 par value and
pany to its affiliates for money borrowed for working;
one
share of Canadian Husky preferred stock for each
capital. Underwriters—Hallowell, Sulzberger & Co. and i Husky Oil 6% cumulative redeemable preference share
Charles A. Taggart & Co., Inc., both of Philadelphia, Pa.,
.of $50 par value. The exchange will become effective
and Weill, Blauner & Co., Inc. of New York.
if, as a result of the exchange offer, Canadian Husky
will hold at least 90% of the shares of each class of
it Augello Petroleum Co., Inc..
f ;
stock of Husky Oil; and Canadian Husky reserves the
July 29 (letter of notification) 140,000 shares of common
z
right to declare the exchange effective if less than 90%,
stock/ Price—At par ($1 per share). Proceeds—For oil
but more than 80%, of such shares are to be so held.
and gas promotion expenses.
Office—Anchorage Hotel,;
The offer will expire on Dec. 3, 1956. *.
*
Anchorage, Alaska. Underwriter—None.
•
it Carolina Telephone & Telegraph Co.
Automation Industries Corp., Washington, D. C.
Aug. 13 filed 12,000 shares of common stock (par $100)
;May 11 filed 179,000 shares of common stock (par $1).
Price—$5.25 per share. Proceeds—For working capital : -to be offered for subscription by officers and employees
and other corporate purposes* > Underwriter — None. ■;v of the company pursuant to its Employees' Stock Plan.
i *s
* *
Harry Kahn, Jr., of Washington, LI. C., is President;and; i/, Centers Corp., Philadelphia, Pa. *; •
Treasurer.
"
July 30 filed $8,000,000 of 5J/2% sinking fund debentures
due Aug. 1, 1971, and 1,600,000 shares of common stock
it Axe-Houghton Fund A., Inc., Tarrytown, N. Y.*
(par one cent) to be offered in units of $50 of debentures
Aug. 1 filed 500,000 shares of capital stock (par $1).
and 10 shares of stock (neither of which will be separ¬
Price—At market.
Proceeds—For investment.
: r r
,\
ately transferable until Aug. 1, 1958). Price — $50 per
• Bahamas
Helicopters, ltd. (8/27*31)
'
unit. Proceeds—About $4,100,000 will be used to acquire
July 13 filed 300,000 shares of ordinary (common) stock
; seven shopping center sites and a Penn Fruit super¬
(par £1 sterling). Price—To be supplied by amendment.:
market adjacent to one of them; the balance will be used
:
Proceeds — To purchase a 49% stock interest in Aero , f
dcvelon shonnim? center* at the *even *ite* and to
Technics, S.A., for approximately $500,000, to,make
develop additional-sites for related real
$200,000 down payment on three S-58 Sikorsky helicop- ;;
to
'
>

4

July

10;

it Arena Enterprises, Inc., Washington, D. C.
Aug. 13 (letter of notification) 800 * shares of ^ class A
common stock (par $49)
and 800 shares of class B com¬
mon stock (par $1) to be.offered in units of-one share of
Price—$50

per

unit;

Proceeds—For

equipment and working capital.
Office—3120 Newark
St., N. W., Washington 8, D. C. Underwriter—None;
"■
Arizona Public Finance Co., Phoenix, Ariz.;
>
Sept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20/
cents per share. Proceeds—For working capital. Under-'
writer—None, sales to be directly by the company or by
salesman of the insurance firm.
•

Armstrong Rubber Co.
May 31 filed $9,250,000 of»convertible subordinated
debentures due July, 1971.
Price — 100% of principal
amount.
Proceeds—Together with $7,750,000 to be bor¬
rowed

from

acquisition of

insurance

companies, for construction or
plants and equipment and for work¬

new

,

a/>|cquir?
a^tS ^

•

debentures,

each class of stock.

,

■*

rights to expire on * Sept. 25.
Price—,,
100% per $100 principal amount;, for
stock, $12.50 per share. .Proceeds—To repay bank loans. •
Underwriter—None. Statement effective July 10.
of

,

...

preferred-share held, while the common shares *
are
heing offered for subscription by common stock- *
-holders at the rate of one share for each 10 shares held •>..
For

Canadian Husky Oil

-

for each

as

•

/

?Srf_

Underwriter ^

Ne™rkdneSS' t,nderwriter-Blair & C°"

cOrookte oSro(^

&

Cof Iifcorp^ated^Phifa^^^^^

3^3

Sr

tional 300,000 common shares and reoffer them to per¬
sons
selected by it at $1.10 per share. < Offering—Ex¬
America^ ■:f'j? ■ \ 'S: v-/
June 29 (letter of notification) 150,000 shares of common
pected early in September.;
I
' - ;
stock (par $1). Price -$2 per share. Proceeds—For min-. - i, CAntrat Cnonerativp Whole<calA
ing expenses./ Office—290 N. University- Avfe^^vo^
- nmmicmrv
Bentomite • Corp. of

•

-Aug,;. 6> (letter of notification)Proceeds—To retire notes
$250,000 of, promissory
Price—At face amount.

Thomas Loon Co New Orleans T.a "
inomas Loop Co., wew Orleans,
La.-.rhotes.

Underwriter
unaerwmer

Utah
uxan.

Beta Frozen Food

Storage, Inc.

.> .that-are maturing and for working capital.; Office^lOOl

;

May 14 filed 15,000 shares of preferred stock (par $50)v
and $1,000,000 -convertible debenture bonds. rPriee—At

Winter St., Superior,

Wis, Underwriter—None. *■'<**:

woitJr0Wf^F BhltimoS-

*^hly ^7.1 filed 80,000 shares of cumulative preferred stock
Willitm"$100). Price-To be supplied by amendment.. PrePresident of company. Offering--^eds_To repay banfc ioans and to construction proJ?
F

./V./

,

/

;

'

.

V

;

i

mnn

fgram,'Underwriter—^Union Securities Corp., New York.
\ > Christia^ Fidelity Life Insurance Co.
^JxjLly 12 filed 20,000 shares of common "stock (par $10) to

Proceeds—To be used for

ColoraUndmvriter—Lamey I^o^BouldCT^Colo0^^' ' includinginsurance to be invested in securities common to
Lamey
$200,000 industry. Office—Waxahachie, Tex.
-Lamey & Co., Boulder, Colo.
the life
UttrrU

Birnaye Oil & Uranium Co., Denver, Colo. /
'
April 6 (letter of notification) 1,000,000. shares of class
A common stock (par five cents).. Price — 10 cents per
share. Proceeds
For mining expenses, ©ffice — 762
Denver Club Bldg., Denver, Colo. Underwriter—Birken-'
mayer & Co.; Denver. Colo.
v—

Bliss

&

Laughlin, Inc., Harvey, III.

(8/21) •;/'

C.

I. T. Financial Corp.

■.=

,'G '

Proceeds—Pri¬
marily for furnishing working funds to company's sub¬
sidiaries.
Underwriters—Dillon, Read & Co. Inc., Kuhn,
Price—To

be

supplied by amendment.

Loeb

Price—To be supplied by amendment. Proceeds—To cer¬

Offering—Temporarily postponed.

St.

stockholders.

;

Underwriter

—

Kalman

&

Co.,

Inc.,

Paul, Minn.
Bonanza Oil &

Mine Corp.,

Boston, Mass.

.

July 30 (letter of notification) 34,140 shares of common
stock

10 cents). Price—At market. Proceeds—For
expenses.
Office — 4 Liberty Square, Boston,

(par

mining

•

Underwriter—Kimball & Co., New York.

Mass.

Braniff

being offered for
on

•

Boston

Philadelphia

Pittsburgh

San Francisco

Private IVires to all offices




Cleveland
,

the

"

basis

of

subscription by common stockholders

as

of Aug.

three

7

new

shares

for

each

five

shares

Co.

Lehman

and

Brothers,

all

York.

of New
-

.

-

;

(

-

it Claussen-Bakeries, Inc., Augusta, 6at,
*
Aug. 13 filed $250,000 of 6% debentures due< 1966, and
166,000 shares of common stock (par $1), of which the
debentures and 16,000 shares of stock are to be offered
publicly arid the remaining 150,000 share's of stock are
to be offered for subscription by class A and class* B
of

(with an oversubscription privilege);
rights to expire on Aug. 21. Price—$10 per share. Pro¬
ceeds—Together with funds to be derived from $40,000,000 long-term loan, and with company funds, to defray
cost of new aircraft, flight equipment and other facilities.

held

Chicago

&

common

Airways, Inc.

July 12 filed 1,105,545 shares of common stock (par $2.50)

New York

V

.

May 17 filed $75,000,000 of debentures due Aug. 1, 1971.

July 30 filed 29,500 shares of common stock (par $2.50).
tain

Albert

Underwriter—None, sales to be made through
Carroll Bates, President of the company.

new

stock

stockholders at the rate of two-thirds of
common

held.

stock

Price

—

for

each

class A

Of debentures,

and/or

100%

a

share

class B

of principal

of stock to stockholders, $5.50 per share;
public, $6.50 per share. Proceeds—Together with
funds from private placement of preferred stock by H.
H. Claussen Sons, Inc., a subsidiary, to retire debentures
and subsidiary's preferred stock; for expansion and other
corporate purposes. Underwriter—Johnson, Lane, Space

amount; and
and to

&

Co., Inc., Savannah, Ga.

Volume 184

Number 5560

•.

The Commercial and Financial Chronicle

.

(711)

^ Clayloon Uranium

Co.

ic Combined Industries, Inc.

Aug. 1 (letter of notification) 1,000,000 shares of common
stock (par five cents). Price—15 cents
per share.
Pro¬
ceeds—For mining expenses.

Spokane 1, Wash.

Aug.
mon

•

of

Proceeds—For building
marine

center

the

on

Price—$7

common.

the

first

unit.

per

completely integrated

Connecticut

shore

fulfil

to

for

and

~

other' general

corporate

purposes.

derwriter—None.
Crestmont Oil Co.

Commercial Credit Co.

June 28

July 31 filed $50,000,000 of notes due Sept. 1, 1976. Price
—To be supplied by amendment.
Proceeds—To repay
short-term loans and for working capital. Underwriters
—The First Boston Corp. and Kidder,
Peabody & Co.,
both of New York (latter
handling books). Offering—

pre¬

share

March

v

Business—Wrought iron "furniture, etc.
Office—33-01
Far Rockaway Boulevard, Edgemere 91, N. Y. Under¬
writer—Harold D. Levine, 82 .beaver
Street, New York.

Aug. 3 (letter of notification) 252,000 shares of preferred
(par $1) and 42,000 shares of common stock (par
$1) to be offered in units consisting of six shares of
one

notification) 300,000 shares' of com¬
(par 10 cents). Price—$1 per share. Proceeds
accounts payable, for equipment and inventory

purchases

stock

and

Continental Equity Securities Corp.
28 iiled 40,000 shares of class A common
stock
(par $5) and 80,000 shares of class B common stock (par
50 cents). Price—Of class A
stock, $12.50 per share, and
iQf class B stock,.,f>Q cents per
sh$re. Proceeds—To in¬
crease capital and surplus.
Office—Alexandria, La. Un¬

(letter of

stock

—To pay

Office—745 Peyton Bldg.,

Underwriter—None.

^ Clinton Marina Inc., Clinton, Conn.

ferred

6

the

public demand for better berthing and servicing facilities
for all pleasure craft. Office—P. O.
Office Box 12, Clin¬
ton, Conn. ..Underwriter—None. '

Indefinitely postponed.

■'//•••

(par $1). Price—$6.25
ing stockholders.
Office

—

stock

at

the

of

rate

$1.30

for

each

★ DanCu Chemical Co.
Aug. 7 (letter of notification)

Underwriter—None.

Proceeds—For- working capital,
construction,
-purchase of Dover plant, etc/ Office—90 Broad

•

St., New

York, N. Y. Underwriter—None.
Colorado
June

5

:

/

'

Springs Aquatic Center, Inc.

filed

500,000

/cents'). Price—$1

shares

of

"

•

;

stock-(par

common

10

share. <proceeds—For -swimming

per

•

pool and related activities, bowling alley, site preparation
-including parking, and land cost ($95,000). Underwriters

[—Arthur L. Weir & Co., Colorado Springs, Colo.;- and
'Copley & Co.
' -Cj'V" *
-

;

Consolidated

-

B

stock. Price—At par ($10 per
share). Pro¬
working capital, etc. Address — P. O. Box
1053, Oklahoma City, Okla. Underwriter—None.

&

Deseret Pharmaceutical

,

Gas Co.

-

Salt Lake City, Utah.

:

August 17

(8/25)
'July 24 filed $59,778,900 of 3%% convertible debentures
due Sept. 14, 1971, to be offered for
subscription by
•
stockholders of record Aug. 17, 1956 at the rate of
$100
of debentures for each

(jointly). Bids—Were to have been
-received up to 11:30 a.m. (EDT) on Aug. 28 at Room
3000, 30 Rockefeller Plaza, New York 20, N. Y. State¬
ment withdrawn on
Aug. 15 in view of present market

/

21 shares of stock
held; rights to
expire on Sept. 14. Price—100% of principal amount.
Proceeds—To repay short term bank loans and for con-

/ struction
v

■

CALENDAR

and other purposes.

Devall Land & Marine Construction Co.. Inc.
(9/10-14)
May 16 (letter of notification) 150,000 shares of com¬
mon stock (par
$1). Price—$2 per share. Proceeds—For

Preferred

(M. S.

&

(Fenner Corp..) $180,000

Laughlin,

V

Inc.)

29,500

(Bids

11:30

jbUL)

a.m.

^

shares

August 22

(Paine,

Webber,

September 10

(Wednesday)

Jackson

Curtis

and

and

Union

W.

(Bids

Piessprich

&

Securities

Corp.)

Bros.

&

to

to

be

be

invited)

State

Securities

100,000

&

Otis,

Inc.)

$3,750,000

Aviation, Inc

August 24
National

(Offering

to

Lehman

"

■

Class A
Inc.)

11

(Bids

to

to

be

be

invited)

September 12

$1,000,000

(Friday)

(Bids

Bank

Blyth

&

Common

Co.,

be

Inc.)

underwritten

August 25
(Offering to

common

■''[

10

Bonds

/■(V(Bids

(Monday)
Common

Incorporated)

300,000

shares

Mica & Minerals Corp, of America
(Peter

Morgan

&

Co.)

Common

to be invited) $20,000,000

&

(Offering

to stockholders—no

'p

'

October 2

>

to

Cement

Common

shares

Corp

(Vickers

Brothers)

$9,650,000

England Telephone

(Offering

Ocean

to

&

stockholders—no

Drilling &

invited)

October 16

Telephone

(Offering

Puerto
(Crerie

to

Rico
&

Co.

Jai

(Crerie

&

Co.

Noonan,

Inc.)

and

(Bids

Dixon

11

Bretscher

Noonan,

Inc.)

to

$385,000

Bonds
a.m.

EDT)

Telephone

be

invited)

Bonds

$30,000,000

17

underwriting)

$58,053,100

on

of

Eastern

for

each

Grand

basis of 4.8216 shares of East-

National

Mutual

Fund, Inc.

pany

and

will declare itself an open-end investment company
change the offering price of the remaining 40,000

Bonds

(Bids

11

EDT)

a.m.

$28,000,000

Ohio Power Co
(Bids

Central

Illinois

I
Preferred

11

a.m.

EDT)

October 23

Public

$6,000,000

Common

Co

November

(Tuesday)

Edison
to

be

13

Co

a.

invited)

Bonds

$10,000,000

(Tuesday)

Carolina Power & Light Co
(Bids to be invited) $15,000,000

Sun

Life

Insurance Co.

None.

per

share.

shares of common stock (par $1).
Proceeds—To expand company*!

Office—Fort

Lauderdale, Fla. Underwriter—
Offering will be made through James C. Dean,

Hills Mining and Oil, Inc.
(letter of notification) 1,200,000 shares of com¬
mon stock (par five cents).
Price — 25 cents per share.
Proceeds—For expenses incident to mining operation!.

Jan.

4

General

Acceptance Corp.

Gordon

(8/22)

July 20 filed $20,000,000 of senior debentures due 1971.
Price—To be supplied by amendment.
Proceeds—Ap¬

170,000 shares

Metropolitan

Florida

Office—Kemmerer, Wyo. Underwriter—Philip
& Co., Inc., New York 6. N. Y.

(Tuesday)

Service

distributing charge. In¬
Corp., San
Francisco, Calif. Underwriter—First National Securities
Co., same city, of which Wiley S. Killingsworth is Presi¬

Gas

(Wednesday)

November 27

Common

share

President of company.

Co

(Bids

(Friday)

Co

stockholders—no




$10,000,000

one

June 27 filed 50,000 shares of common stock (par $1), of
which 10,000 shares are to be offered for sale at $10 per
share to not more than 25 people, whereupon the com¬

business.

Common

August 31
Bell

(Offering

$1,100,000

of

for each $100

of debentures held as of Aug. 9, 1956
(with an oversubscription privilege); rights to expire on
Aug. 30. The remaining 1,000,000 shares are to be sold
to Grand Union Co. Price—$2 per share.
Proceeds—To
locate and develop shopping centers East of the Missis:'i; sippi. Underwriter—None.
ern

Price—$10

(Tuesday)

(Bids to be invited)

Alai, Inc

Tampa Electric Co

Illinois

Power

$156,226>70Q

_Bonds

Bretscher

Ohio

..Common

underwriting)

Alai, Inc
Dixon

and

Puerto Rico Jai

to

October

$61,301,000

Common

& Telegraph Co

stockholders—no

(Bids

-

Exploration Co

debentures, due 1969, of Grand Union Co.

March 16 filed 32,000

$8,000,000

Telegraph Co.__Com.

underwriting)

basis

dent.

Bonds

Public Service Co. of Indiana, Inc

(Offering to stockholders—to be underrwitten by Morgan
Stanley & Co. and Reinholdt & Gardner) 211,238 shares

Pacific

$25,000,000

California Electric Power Co

'

(Wednesday)

Foster-Mann,

vestment Adviser—First National Investment

-.Debentures

(Tuesday)

■'*

1

$575,000,000

Common

August 29
New

Common

about

(Tuesday)

be invited)

(Bids to be

Republic

underwriting)

October 9
•

160,511

(Monday)

—

shares to net asset value plus a

(Tuesday)

Co.)

1

the

on

First

—Bonds

Columbia Gas System, Inc

$570,000

Haughton Elevator Co.___
.(McDonald

(Tuesday)

.

.

(Bids

August 28

———Bonds

American Telephone & Telegraph Co

Bahamas Helicopters, Ltd
Co.

$15,000,000

Virginia Electric & Power Co
October

(Blair &

Bonds

Underwriter
.

Union share held and

'

September 25
Debentures

stockholders—no underwriting)v~
$59,778,900

purposes.

Eastern

subordinated
•

(Wednesday)

CDT)

a.m.

corporate

Shopping Centers, Inc.
July 20 filed 3,140,000 shares of common stock (par $1;),
of which 2,140,000 shares are being offered for
subscription by holders of common stock and 3^% convertible

$2,500,000

(Bids noon EDT) $4,000,000

(Saturday)

August 27

eral

Inc., New York.

Preferred

$20,000,000

Southern Nevada Power Co

$7,750,000

Co...

Edison

Explorations, Ltd.,
Toronto, Canada
"D") 500,000 shares of common stock
/ (par $1). Price—60 cents per share. Proceeds—For gen¬

•

September 18 (Tuesday)

by
y

Detroit

Eastern-Northern

(Tuesday)

invited)

Bonds

<

June 4 (regulation

by

General Telephone Co. of California

Brothers)

(Bids

stockholders—to

-

Common

Northern States Power Co

Indiana

\

shares

to stockholders—to be underwritten
Morgan Stanley & Co.) about $40,000,000

Debentures

:

and

Dealers,

■

Common

invited)

Blackstone Valley Gas & Electric Co

Gold Seal Dairy Products Corp
(All

/'

$15,000,000

ploration, development and acquisition of properties and
working capital. Underwriter—Columbia Securities
Co., Denver, Colo.

for

-

Bonds

(Offering

/ $50,000,000

,

Co., Inc.__Com.

$300,000

Common

(Gearhart

North American

(Thursday)

Hutzlcr

Douglas Corp., Fort Collins, Colo.
H July 27 filed 4,000,000 shares of common stocks
(par one
cent). Price — 10 cents per share. Proceeds — For ex¬

$25,000,000

Associates Investment Co
(Salomon

McKeever & Associates, Oklahoma City, Okla.

(Monday)

Brothers)

September

August 23

—

Minerals, Inc.

Co.)

shares

Minneapolis-Honeywell Regulator Co._.Debentures
(Union

•

Gulf States Utilities Co

Securities

Common "

R.

110,423

_

(Bids

$20,000,000

Hooker Electrochemical Co
(Smith, Barney & Co.

shares

Gulf States Utilities Co

Debentures

&

/ Corp.)

:

common

Devall Land & Marine Construction

:

General Acceptance Corp

'

Peabody & Co.) $10,000,000

(Vickers

v

Debens. & Common

S

Debentures

$78,000,000

154,000

Houston,

Corp., Carrollton, Tex. •
23 filed 500,000 shares of common stock (par 10
/cents). Price — $1 per share. Proceeds — For working
capital, to be devoted mainly to acquiring, exploring,
developing and operating oil and gas properties; and to
pay off $13,590.80 liabilities.
Underwriter
James C.

Vanadium Corp. of America
___.i_._Debentures
(Offering to common stackholders—underwritten by Kidder,

Common

Co.,

Pacific Telephone & Telegraph Co

•;r'-

and

'

(Tuesday)

Inc
Jr.

Ovalman

Underwriter—Vickers Brothers,

/ Feb.

(Exchange ofler to preferred stockholders—Union Securities
Corp. will be dealer-manager)
$61,600,000
of
debentures

Common
.

Bliss

purchase and equip three boats
Office—1111 No. First Ave., Lake

Doctors Oil

Common

Gerber, Inc. and James N. Toolan & Co.) $600,000

St. Louis-San Francisco Ry

(Monday)'""

August 21

notes, to

Charles, La.
(Wednesday)

Industrial Limerock, Inc

$8,000,000

Idaho-Alta Metals Corp.
/

of

'and working capital.

September 5

Central Illinois Light Co

August 20

Underwriter—None,

;

Tex.

(Friday)

(Union Securities Corp.)

Underwriter—None.

Detroit Edison Co.

payments

NEW

Co., Inc.

-Aug. 3 (letter of notification) 152,500 shares of common
/stock. Price—At par ($1 per share). Proceeds — For
inventory and working capital. Office—516 Boston Bldg.,

Curtis

conditions.

common

ceeds—For

Aug. 6 filed $30,000,000 of debentures due Sept. 1, 1981.
Proceeds—To repay bank loans and for construction
program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
"Inc.; Morgan Stanley & Co. and the The First Boston
Corp. (jointly); White, Weld & Co. and Paine, Webber,
Jackson

18,000 shares of class B

stock and 9,000 shares of 6% cumulative con¬
vertible class B preferred stock. Each share of class B
preferred stock may be converted into one share of class

'

,

Natural

Burbank, Calif.

common

/per

'amount.

West

stock
(par one cent).
Price—10 cents per share,
Proceeds—For mining expenses. Office—1730 North 7th
Street, Grand Junction, Colo. Underwriter—Columbia
.Securities Co., Denver, Colo.

-

share). Proceeds — For working capital. Office—
Equitable Bldg., 421 S. W. 6th Ave., Portland 4, Ore.

share

2201

Dalmid Oil & Uranium,
Inc., Grand Junction, Colo.
April 16 (letter of notification) 2,700,000 shares of com¬

-

(Each I $100 of debentures is. convertible into 18
shares of common
stock.)/ Price—At 100% of principal

common

mon

.

common

8,000 shares of

share. Proceeds—To sell¬

per

Underwriter—Neary, Purcell & Co., Los Angeles, Calif.

'^Colonial Ice Co.
;;; June 21 (letter of notification) 50,000 shares of common
V stock being offered initially to stockholders
'Aug. 6 (letter of notification) 15,000 shares of common
(par $2).
ii" Price—$5.50 per share. Proceeds—'lo be added to genstock (no par) to be offered to common
stockholders.
i- eral funds and for expansion of business. Office—5579
Price—$20 per sh^re. Proceeds—For acquisition of 5%
negotiable- notes of Stonhard Co., Inc. Office—Greens¬ / Pershing Ave., St. Louis, Mo. Underwriter—Edward D.
Jones & Co., St. Louis, Mo.
boro, N. C. Underwriter—None.
//v^^
Commonwealth, Inc., Portland, Ore.
Colonial Utilities Corp.
March 23 (letter of notification) 5,912 shares of 6% cu¬
June
4 .(letter
of
mulative preferred stock being offered for
notification)$109,245.50 /principal
subscription
amount of 6% convertible subordinate
by stockholders of record April 16, 1956 on a pro rata
debentures, due
June 1,-1966 to be offered for
basis; rights to expire on July 2, 1956. Price—At par ($50
subscription by holders
of

(letter of notification)

stock

'

\ Commercial Life Insurance Co. of Missouri

held.

35

proximately $16,000,000 will be used to liquidate Secu¬
rities Credit Corp.'s liability for notes receivable dis¬
counted; and for working capital. Underwriters—Paine,
Webber, Jackson & Curtis, Boston and New York; and
Union Securities Corp., New York.
Continued on page 36

\

The Commercial and Financial Chronicle .'..
36

(letter of notification) 1,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—To purchase machinery and equipment and
for working capital. -Office — 377 McKee Place, Pitts¬
Feb. 20

*

,

,

it Genera! Merchandise Co., Milwaukee, Wis.
_
13 filed 180,000 shares of common stock (par $2.50).
be supplied by amendment. Proceeds — To

Aug

Price—To

for working capital.
business. Under¬
Blosser & McDowell, Chicago, 111.

outstanding bank loans and

repay

Business—Wholesale catalog mail order

writer—Straus,

burgh, Pa. Underwriter—Graham & Co.,
'

(9/11). * ^
Aug. 13 filed $20,000,000 of first mortgage bonds, series
J, due Sept. 1, 1986; Proceeds—To discharge bank loans
Telephone Co» of..Califomia'

it General

construction

for

and

Underwriter

program.

—-

(jointly). Bids—Tentatively ex¬
pected to be received on Sept. 11.
Kidder, Peabody & Co.

Genera! Tire & Rubber Co., Akron,

O.

of $5 cumulative preference
to purchase a like
(par $2.50) being
offered in exchange for common and preferred stock ot
A. M. Byers Co. on the basis of one share of General s
preference stock and a warrant to purchase one common
share at $60 per share for each 3*/3 shares of Byers
-common stock. If less than 100,000 shares of Byers com¬
mon stock are tendered, the exchange ratio will be one
^General Tire preference share, plus a common stock
purchase warrant for each three shares of Byers com¬
mon
stock.
The Byers preferred stockholders may
^exchange each preferred share for either 1.1 shares of
Cteneral Tire preference stock and a warrant to pur¬
chase at an initial price of $70, one share of Byers com¬
mon
stock, or one share of General Tire preference
stock and $10 in cash. The offers will expire on Sept. 6.
The General company has also agreed to purchase from
J. F. Byers, Jr., and B. M. Byers a total of 60,000 shares
•of Byers common stock for an aggregate price of $1,500,000. If certain conditions are not met, the company
Is obligated to purchase the 60,000 shares for an aggre¬
gate of 18,000 shares of General's cumulative preference
stock of a series containing similar terms and pro¬
visions to the company's outstanding $5.50 series A
«tock (par $100) and 134,717 warrants
number of shares of common stock

Ohio

General Tire & Rubber Co., Akron,

cumulative preference
exchange for common
stock and 6% promissory notes of Carlon Products Corp.
The exchange offer will be subject to acceptance by
of all of the outstanding

$1,060,000 notes and by

39,400 of the 68,837 shares

National Securities Co., Las
'

Hiskey Uranium Corp.
May 31 filed 500,000 shares of common stock (par 30
Price—$1 per share. Proceeds—For drilling ex¬
penses, purchase of properties and working capital. Of¬
fices—Las Vegas, Nev., and Salt Lake City, Utah. Under¬
writer—Ackerson-Hackett Investment Co., Reno, Nev.
Holden Mining Co., Winterhaven, Calif.
April 13 (letter of notification) 250,000 shares of capital
stock. Price—At par ($1 per share>. Proceeds—For min¬
ing expenses. Address — P. O. Box 308, Winterhaven,
Calif. Underwriter—Arthur B. Hogan, Inc., Hollywood,

of Carlon stock.

held as of Aug. 8, 1956; rights to expire on
30. Price—At par ($12.50 per share). Proceeds
—To purchase certain assets of the Delaware company
and for

«

Gold Seal

—

(8/22)

Aug. 10 filed 100,000 shares of
Proceeds—To
determined

&

Beane

and

on

To

Corp.

Bids—Tentatively scheduled

improvements,

(letter of notification)

1,000,000 shares of

stock. Price—Five cents per share.

N. Y.

Proceeds

For expenses incident to commercial
grain
Underwriter—W. R. Olson Co., Fargo, N.

Developments, Inc., Cleveland, Ohio

filed .600,000 shares of common stock

count of the company

and 90,000 shares for selling stock¬
Price—$1 per share, by amendment. Proceeds
exploration and development and other general

holders.

corporate

purposes.
New York City.
•

to

Arliss

Office

—

Co., Inc.

Management Co.,

com¬

Office—Moah, Utah.

Life

Statement withdrawn

Long Island Lighting Co.-,
April 5 filed 120,000 shares of cumulative preferred stock,
series G (par $100). Price—To be supplied by amend¬
ment.
Proceeds—To repay bank loans.
Underwriters—
Blyth & Co.,- Inc., The First Boston Corp. and W. C.
Langley & Co., all of New York. Offering — Postponed
because of present unsatisfactory market conditions.
Los
/

Angeles Airways,

April 23

Inc.,

(letter of notification)

Los Angeles, Calif.
645 shares of common

stock (par $10). Price — $54 per share. Proceeds — To
Clarence M. Belinn, the selling stockholder. Office—5901

West Imperial Highway, Los Angeles 49, Calif.
writer—Dean Witter & Co., Los Angeles, Calif.

for purchase of equip¬
New

Dallas, Texas.

June 26.

369-375 DeKalb Ave., Brooklyn 5,
Co..

Series;

125,000 shares of Insurance Growth Series; and 125,000
of Industrial Growth Series. Price—At market.
Proceeds — For investment. Underwriter — All States

Proceeds—For

Industries

Underwriter—George A. Searight

Lone Star Fund, Dallas, Texas
filed 125,000 shares of Balanced Income

York.

Lost

& Trust Co.,

Under¬

Canyon Uranium & Oil Co.

Mullins, S. C.
July 9 filed 1,800,000 shares of common stock (par $1),
of which 1,200,000 shares are
to be offered publicily
and 600,000 shares on exercise of options. Price—$2 per
share to public. Proceeds—To be added to general op¬

Oct.

erating funds to enable the company to maintain proper

Lake City, Utah.

insurance

reserves

6

(letter of notification) 3,000,000 shares of non¬
assessable capital stock (par one cent). Price—10 nenti
per share.
Proceeds—For expenses incident to mining

operations.

Office

—

Simms Bldg., Albuquerque, N. M.
Inc. of Utah, Salt

Underwriter—Mid-America Securities

required by law. Underwriter—None.

Lumberman's

Investment &

Mortgage Co.

'

.Israel-Mediterranean

—




Plastic

Underwriter—Kamen &

Investment

to

and for general corporate
Ariz.
Underwriter—George

(par 10
cents), of which 600,000 shares are to be sold for ac¬

Basic Metals, Inc.
(letter of notification) 1,000,000 shares of com¬
(par 10 cents). Price — 25 cents per share.

For advances

Sept. 10.

Co., New York.

New York. Offering—Postponed.

Lithium

June 21

equipment

Office—Tucson.

purposes.

on

Corp.
Oct. 12 (letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—

Gunkeiman (R. F.) & Sons,
Fargo, N. D.
May 25 (letter of notification) 1,800 shares of 5% cumu¬
lative preferred stock
(par $100). Price—$98 per share.

business.

Thomson, Ga.

per

F. Breen,

one new

International

bidders:

Co., of

March 30 filed 100,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—For exploration and evaluation of leasehold
properties,

Proceeds—For mining expenses. Office—155 West South
Temple St., Salt Lake City, Utah. Underwriter—Melvin
G. Flegal & Co., Salt Lake City, Utah.

Corp.; Merrill Lynch, Pierce,
Brothers (jointly); Carl

Investment

Lewisohn Copper Corp.

(formerly

International

be

a

a

/ Leadville Lead & Uranium
Corp.
July 17 (letter of notification) 150,000 shares of common
stock (par $1) to be offered to stockholders; the balance
to go to certain persons in certain jurisdictions to be
decided upon.
Price—$2 per share. Proceeds—For ex¬
ploration and development and to purchase additional
stock of its subsidiary, leadville Explorations, Inc. Office
—308 Colorado Bldg., Denver, Colo. Underwriter—None.

Underwriter—I. J. Schenin Co., New York.

(no par).

•

*

(letter of notification) 18,804 shares of common
(par 33% cents). Price—At market (estimated at
share). Proceeds — To selling stockholder.
Underwriter—Sincere & Co., Chicago, 111.
$3.50

Industrial Minerals Development Corp.

Lehman

Loeb, Rhoades & Co.
be received

stock

'j[

shares

ment, etc.

—

Stone & Webster Securities

Fenner

common

•

stock

(8/20)

development and working capital.

bank loans. Underwriter
by competitive bidding. Probable
repay

Fund, plus

June 1

mon

(9/10)

'-/v.

4. "

June 4

—For

March 7

Corp.

V.

Kropp Forge Co.

both of New York.

Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fen& Beane and White, Weld & Co.
(jointly); Salomon

it Gulf States Utilities Co.

*1

,,v*v

and lumber. Underwriter—Ira Haupt &

working capital and general corporate purposes. Under¬
writers—M. S. Gerber, Inc. and James M. Toolan & Co.,

(9/10)

Securities

*

price equal
sales load of
Proceeds—For investment. Invest¬

of such price.

Inc., Miami, Fla. (9/5-6)
July 23 filed 300,000 shares of common stock (par one
cent), together with 75,000 common stock purchase war¬
rants.
Price—$2 per share. Proceeds—For equipment,

of first mortgage bonds due
bank loans and for construc¬

Union

^

20 filed 150,000 shares of class A common stock
(par $1). Price—To be supplied by amendment (expect¬
ed at $4 per share). Proceeds—To pay loans from banks
and factors; and for working capital and other
corporate
purposes. Business—Prefabricated homes, house trailers

stock

and

*

Additional shares will be offered at

Knox Corp.,

Industrial Limerock,

(jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly);
Lee Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—Ten¬
tatively scheduled to be received on Sept. 10.

-

Feimer

the basis of

27

Hutzler

J

-

ment Manager — California Fund
which John Kerr is also President.

share for each eight shares held:
Sept. 28, 1956. Price—At par ($100
per share).
Proceeds—To repay advances from parent,
American
Telephone & Telegraph Co., which owns
4,612,578 shares (99.32%) the Illinois company's stock.
Underwriter—None.
on

petitive

-

share.

a

Metals Corp.

rights to expire

Underwriter—To be determined by com¬
bidding.
Probable bidders: Halsey, Stuart &

&

'«,>

/ Kerr Income Fund,
Inc., Los Angeles, Calif.
July 30 filed 100,000 shares of capital stock (par $1), of
which 9,300 shares will be initially sold at $10.98
per

Co.), New York.

Jan.

Bros.

West Montezuma St., Cortez,
Bay Securities Corp., New York.

—

Aug. 6 (letter of notification) 175,161 shares of common
stock (par five cents). Price—At market (estimated at
cents per share). Proceeds—To go to Hunter Secu¬
rities Corp. Office—First Security Bldg., Salt Lake
City,
Utah. Underwriter—Hunter Securities
Corp., New York.

it Illinois Bell Telephone Co. (8/31)
Aug. 10 filled 580,531 shares of capital stock to be offered
for subscription by stockholders of record Aug. 31, 1956,

mon

ner

326

—

.

•>.'o

.

7

tion program.
Co.

Office

Underwriter

New York.

(letter of notification) 120,000 shares of com¬
mon stock (par 10 cents).
Price—$1.50 per share. Pro¬
ceeds—For exploration and development expenses. Un¬

Underwriter-pNone.

Proceeds—To repay

over

Idaho-Alfa

March

Guaranty Income Life Insurance Co.
Dec. 30 (letter of notification) 24,000 shares of capital
*tock (par $5) to be offered first to stockholders; then
policyholders and the public. Price—$10 per share. Pro¬
ceeds—For working capital. Address—P. O. Box 2231,
Baton Rouge, La. Underwriter—None.

1986.

activities.
Colo.

transaction.

Salinas, Calif.
1/Iay 28 filed 600,000 shares of common stock (par $1)
to be offered primarily to individuals and firms who
are
engaged in or closely allied to the growing and
shipping industry. Price—$3 per share. Proceeds—For
working capital, capital expenditures and other corpo¬

Utilities Co.

Jurassic Minerals, Inc., Cortez,Colo.
Aug. 26 (letter of notification) 2,855,000 shares of non¬
assessable common stock (par one cent). Price—10 cents
per share.
Proceeds—For expenses incident to mining

the remaining 775 shares, plus rights to buy an
additional 3,875 shares, are to be issued to Cady, Roberts
& Co., New York City, as a fee for its services with such

Growers Container Corp.,

$15,000,000

411 No. Scenic
Highway, Lake Wales, Fla. Underwriter
—Anderson Cook Co., Inc., Palm Beach, Fla. ,*
'>*

and

Underwriter—None.

filed

July 27 (letter of notification) 110,000 shares of common
stock (par 20 cents).
Price—$2.50 per share. Proceeds
—For sales promotions and
operating capital. Office—

five-year period at $13 per share).
Of the total, 77,500 shares, plus rights to purchase an
additional 387,500 shares, are to be offered in exchange
for the license rights and assets of Hayden Projects, Inc.,

•

-

Joa Co.

10 filed 78,275 shares of capital stock (par $2.50)
rights to subscribe to an additional 391,375 shares

&

10

writer—Foster-Mann, Inc., New York, N. Y.

•A* Hydrometals, Inc., Chicago, IIL

Graybili Industries, Inc.
.July 25 (letter of notification) 100,000 shares of treasury
stock. Price—At par (25 cents per share). Proceeds—
For purchase of material and machinery necessary for
manufacture of concrete mixer.
Office—Superior, Wis.

Gulf States

Isthmus Steamship & Salvage Co., Inc.
May 4 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—For
working capital and for purchase of a ship and equip¬
ment.
Office—1214 Ainsley Bldg., Miami, Fla. Under¬

June

Aug. 2 filed 110,423 shares of common stock (par $5).
Price—To be supplied by amendment.
Proceeds—To a
selling stockholder. Underwriters—Smith, Barney 6c Co.
and R. W. Pressprich & Co., both of New York.

(exercisable

Aug.

$1).

writer—None.

New York.

-

Under¬

Price—$5 per share. Proceeds — To expand operations
of subsidiary and increase investment therein. Under¬

derwriter

rate purposes.

Office—Newark, N. J.

working capital.

(8/23)
June 22 filed 200,000 shares of class A stock (par 10
cents). Price—$5 per share. Proceeds—For expansion
and to repay outstanding obligations. Office—Remsen,
N. Y. Underwriter—All States Securities Dealers, Inc.,

*

derwriter—H. Kook & Co., Inc., New York.

8V2%

Dairy Products Corp.

i

are

Price

be the market price on the American Stock.. Ex¬
change. Proceeds — For carrying out the exploratory
drilling and development of presently licensed acreage,
operations and expenses of the company, and acquisition,
exploration and development of additional acreage. Un¬

Hometrust Corp., Inc., Montgomery, Ala.
Jan. 5 filed 125,000 shares of common stock (par

400,000

subject to

—To

to the net asset value of the

and

are

to be offered for sale outside of the United States.

writer—None.

Statement effective March 11.

Is President.

(N. J.)

company

(N. J.), New York
shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For plant facil¬
ities, survey of property and underground development.
JUnder writer—None. Maurice Schack, Middletown, N. Y.,
filed

& Son, Inc.

Aug.

General Uranium Corp.
18

(A.)

July 20 (letter of notification) 23,392 shares of common
stock being offered for subscription by common stock¬
holders of A. Hollander & Son, Inc. (Del.) on the basis
of one new share for each 10 shares of the Delaware

Aug.

therefor

it Justheim Petroleum Co.

Hollander

•

certificates

and

options and 250,000 shares and certificates therefor

Calif.,

Underwriter—None.

Jan.

Ave., Las Vegas, Nev. UnderwriterVegas, Nev.

Fremont

Hooker Electrochemical Co.

July 27 filed 26,068 shares of $5
stock (par $100) to be offered in

not less than

E.

219

Statement effective Aug. 12.

owners

Exploration Co., Inc.-

Hidden Dome

May 15 (letter of notification) 3,000,000 shares of capital
stock. Price—At par (10 cents per share). Proceeds—
For the development of oil and gas properties. Office—

cents).

.July 5 filed 134,717 shares

^Shares.

Pittsburgh, Pa.

Haughton Elevator Co., Toledo, Ohio (8/28)
Aug. 7 filed 160,511 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To sell¬
ing stockholders. Underwriter—McDonald & Co., Cleve¬
land, Ohio.
*

To be

competitive bidding. Probable bidders.
Halsey, Stuart & Co. Inc.; Equitable Securities Corp.;
fCuhn, Loeb & Co. and Salomon Bros. & Hutzler (joint¬
ly); Paine, Webber, Jackson & Curtis and Stone & Web¬
ster Securities Corp. (jointly); White, Weld & Co. and
by

determined

shares

180,000

Hard Rock Mining Co., Pittsburgh,

jrom -page 35

Continued

•

Thursday, August 16, 1956

(712)

^

Petroleum, Inc. (Panama)
May 29 filed American voting trust certificates for 1,430,000 shares of common stock (par one cent), of which
1,000,000 certificates are^to be offered for. public sale*,

May 2 filed 50,000 shares of common stock (par $10).
Price—$12 per share. Proceeds—For working capital and
general . corporate purposes.
Office — Denver, Colo.
;

Underwriter—None.

Volume

184

Number 5560

.

.

.

The Commercial~nnd Financial Chronicle

Macimiento Uranium Mining Corp.
(letter of notification) l,000,0u0 shares of com¬
mon stock
(par one cent). Price—20 cents per share.
Proceeds—^For current liabilities,
exploration, adminis¬

Mohawk Silica

July 31

trative

March

Mack

-

National

Trucks,

stock

Federal

Milling & Uranium Co., Inc.
May 11 (letter of notification) 3,000,000 shares of capital
stock.
Price—At par (10 cents per share), Proceeds—
For mining expenses.
Office—205 Carlson Bldg., Pocatello, Idaho. Underwriter—Columbia Securities Co., Inc.
of

-

National

National

Metallizing Corp.
(letter of notification) 24,000 shares of Class A
(par $1) and 40,000 shares of Class B stock (par
$1) to be offered for subscription by Class A and Class
1, 1956 on a l-for-4 basis.
share. Proceeds—For vacuum metallizing,
conditioning, slitting and inspection machinery. Office—
1145-19th St., N, W., Washingtonj D. C. Underwriter—
per

None.

if National Musitime Corp.
(letter of notification) 393,000 shares of

Aug. 7
stock

(par

Office—Wilmington, Del.

Underwriter

—

Peter

Michigan Wisconsin Pipe Line Co.
July 2 filed $25,000,000 of first mortgage pipe line bonds
due 1976.
Proceeds—To pay off short term bank loans
and for construction program.
Underwriter
To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 43/4S, but were turned down. No new date

7

—

for

bids has been set.

if Midas Minerals, Inc., Drummond, Mont.
Aug. 13 (letter of notification) 300,000 shares of partici¬
pating common stock. Price—50 cents per share. Pro¬

common

Price—75 cents per share.

cent).

Pro¬

repay

Co., Denver, Colo.;

Co., New York; Shelley Roberts &
1

and General Investing Corp., New York.
National

Nov.

■

Morgan & Co., New York.

one

loan and for general corporate pur¬
poses. Office—730 Fifth Avenue, New York. Business—
Background music business. Underwriters—M. J. Reiter

(Vlascot

15

Old Line

filed

Insurance

Co.

shares of class A common
(par $2) and 50,000 shares of class B common
(par $2). Price—To be supplied by amendment.
ceeds — To selling stockholders. Office — Little
Ark.
Underwriter—Equitable Securities Corp.,
50,000

stock
stock
Pro¬
Rock,
Nash¬

ville, Tenn., and New York, N. Y.. Offering—Indefinitely
oostponed.
•

Office—223

Corp., Buffalo, N. Y.
(letter of notification) 5,586 shajes of common
(no par) to be offered to present Stockholm
Price—$8 per share. Proceeds—For oil and gas drilling
expenses.
Office—606 Root Bldg., 84 W. Chippewa St.,
Buffalo 2,

N. Y.

-

^

*

,

Corp., Farmington, N. M.
(letter of notification) 2,000,000 shares of common
(par five cents). Price—15 cents per share. Pro**
ceeds—For exploration and development and other gen¬
eral corporate purposes. Underwriter—Philip Gordon &
Co., New York.
7.7.
:'.y
'...
■■
■; 7.-;Stock

.

•

Drilling & Exploration Co. (8/29)
Aug. 8 filed a maximum of 211,238 shares of
stock (par $1) to be offered for subscription by
stockholders
shares held

the rate

at

as

For

company

does

not

preferred stock
intend presently to

(no

sell

stack than is required to raise, at most, $2,700,000.
—

$100 per share.

working capital,

Proceeds

reserve, etc.

For

construction,
Underwriter—None.
—

Minerals, Inc., New York (9/10)
June 22 filed 2,500,000 shares of common
one

cent).

for

$2,400,000

Price—$1.50 per share.
the

Chavin

stock (par
Proceeds—To acquire

lead-zinc-copper-silver

mine

located in South Central Peru, and for general corporate
purposes.

Underwriter

—

Gearhart & Otis, Inc.,

York.

New
'

if Mines Prospecting & Exploration Co.
Aug. 6 (letter of notification) 150,000 shares of common
stock (par one cent). Price—10 cents per share. Proceeds
—For mining expenses. Office—425 Edith St., Missoula,
Mont.

Underwriter—None.

•

Minneapolis-Honevwell Regulator Co. (8/22)
Aug. 1 filed $25,000,000 of 20-year sinking fund deben¬
tures due 1976.
Price—To be supplied by amendment.
Proceeds—To reduce bank loans and for working capital.
Underwriter—Union Securities Corp., New York.
Mission Appliance Corp. of Mississippi
April 23 (letter of notification) 7,475 shares of preferred
stock (par $20) and 29,900 shares of common stock (par

$5) to be offered in units of one preferred and four
mon shares.
Price—$40 per unit. Proceeds — For

com¬

pur¬

chase of machinery and equipment. Office—New Albany,
Miss.
Underwriter—Lewis & Co., Jackson, Miss.

Modern Pioneers' Life Insurance Co.

May 24 (letter of notification) $300,000 of trust fund cer¬
tificates.
Price—At par ($2 per unit). Proceeds — To
provide capital and surplus funds for the activation of
this insurance company.
Underwriter—Arizona Mutual
Benefit Insurance Co., Phoenix, Ariz.




common

for each

six

general corporate purposes. Office

— New
Orleans,
Underwriters—Morgan, Stanley & Co., New York,

La.

Reinholdt & Gardner,

and

St. Louis, Mo.

-

if Omni-Metals, Inc., Salida, Colo.
Aug. 13 (letter of notification) up to 50,000 shares of
common stock.
Price—At par ($1 per share). Proceeds—
For operating capital.
Address—P. O. Box 500, Salida,
Colo. Underwriter—None.
;
/
>
,

Pacific Finance Corp.

(Calif. )

April 10 filed $25,000,000 of debentures due 1971. Price
be supplied by amendment.
Proceeds—For reduc¬

—To

tion of short-term bank loans.
Underwriters—Blyth &
Co., Inc., and Hornblower & Weeks. Offering—Indefi¬
nitely postponed.
v
Pacific Telephone & Telegraph Co.
(8/21)
July 27 filed $78,000,000 of 32-year debentures due Aug.
15, 1988. Proceeds—To reduce temporary loans from par¬
ent and to repay bank loans.
Underwriter—To be de¬
termined -by
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. . Bids—
To be received up to 11:30 a.m. (EDT) on Aug. 21 at
Room 2315, 195 Broadway, New York, N. Y.
• Pacific Telephone &
Telegraph Co. (8/29)
July 27 filed 1,562,267 shares of common stock to be of¬
fered for subscription by common and preferred stock¬
holders of record Aug. 29, 1956 in the ratio of one share
for each six shares (common and/or preferred stock)
held. American Telephone & Telegraph Co., the parent,

90.70%-'of

the

outstanding

common

stock

and

Telephone & Telegraph Co. (8/29)
Aug. 3 filed 613,010 shares of capital stock to be offered
for subscription by stockholders at the rate of one new
share for each five shares held as of Aug. 29; with

stock, and intends to purchase
1,399,824 shares of the new stock which represents its
pro rata portion of the offering. Price—At par ($100 per
share). Proceeds—To repay temporary borrowings and

rights to expire on Sept. 28.
American Telephone &
Telegraph Co. owns 69.26% (2,122,842 shares) of out¬
standing stock. Price—At par ($100 per share). Proceeds
—To repay temporary borrowings.
Underwriter—None.

for

Niagara Uranium Corp., Salt Lake City, Utah
April 3 (letter of notification) 2,400,000 shares of com¬
mon stock
(par 3% cents). Price—10 cents per share.
Proceeds — For mining expenses.
Office — 345 South
St., Salt Lake City, Utah.

State

Underwriter—Birken-

& Co., Denver, Colo.

mayer

Nicholson

(W. H.)

& Co., Wilkes-Barre,

Pa.

stock (par $5).
working capital.
Underwriter—None. A. E. Nicholson Jr. of Kingston, Pa

filed 20,000 shares of common
Price—$25 per share. Proceeds — For
16

of the preferred

78.17%

construction.

new

Pan-Israel Oil Co.,

Nixon's

Co., Los Angeles, Calif.
American

North

i

Finance

Co.,

Phoenix,

Ariz.

July 9 filed 500,000 shares of class B non-voting common
(par $1). Price—$3 per share. Proceeds—To ex¬
pand business operations. Underwriter—None, sales are
to be made by Eugene M. Rosenson, President, of Pheo-

North

Carolina

(Panama)

price on the American Stock Exchange.
Proceeds—For exploration, drilling and development of
oil and gas acreage in Israel. Underwriter—H. Kook &
Co., Inc., New York.
if Perfect-Line Manufacturing Corp.
Aug. 6 (letter of notification) 80,000 shares of common

Price—$2.25 per share. Proceeds
capital. Office — Hicksville, L. I., N. Y.

(par 10 cents).

Underwriter—P. J. Gruber & Co., Inc., New York.

if Phoenix Oil & Gas Corp.
Aug. 6 (letter of notification) 4,000,000 shares of common

1,000,000 shares, two
shares, one cent per
share. Proceeds—For oil and gas development. Office—
1522 Fairfax, Denver, Colo. Underwriter—None.
stock

(par

per

one cent).
Price—Of
share; and of 3,000,000

Prestole

Corp.

July 3 (letter of notification) $300,000 of 6% convertible
sinking fund debentures due July 1, 1971 to be issued
in denominations of $20 or any multiple thereof.
Price
Proceeds—To pay short
—100% and accrued interest.
note

to

and

buy

equipment.

Office—1345 Miami

St., Toledo, Ohio. Underwriter—Baker, Simonds &

Detroit, Mich. Offering—Being postponed.
expected in near future.

pire Aug. 29. Price—To be supplied by amendment. Pro¬
acquire physical properties and franchises of
the Norwood and Marshville (N. C.) exchanges of the

March 21

Telephone Co. of the Carolinas, Inc.; to reduce
short term indebtedness; for construction and moderniza¬
tion program; and for working capital.
Underwriters—
R. S. Dickson & Co., Inc., Charlotte, N. C. and McCarley
& Co., Inc., Asheville, N. C. :
■

United

Northern States Power Co.

July
1986.

(Minn.)

(9/12)

$15,000,000 of first mortgage bonds due
Proceeds—For repayment of bank loans and for

26

filed

Underwriter—
Probable bid¬
ders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and
The First Boston Corp. (jointly); Merrill Lvnch, Pierce,
Fenner & Beane, Kidder, Peabody & Co. and White, Weld
& Co. (jointly); Equitable Securities Corp. and Union
additions and improvements to

To be determined

property.

by competitive bidding.

Securities Corp. (jointly);
Brothers and Riter & Co.

Smith, Barney & Co.; Lehman
fiointlv):

and

Glore, Forgan

Price—

To be the market

July 24 filed 828,572 shares of common stock (par $1) to
be offered for subscription by common stockholders at
the rate of two shares for each share held; rights to ex¬
ceeds—To

1,~

options and 25,000 shares and certificates therefor are to
be offered for sale outside of the United States.

term

Co.

Telephone

Inc.

430,000 shares of common stock (par one cent), of whick
1,000,000 certificates are to be offered for public sale,.
180,000 shares and certificates therefor are subject to

stock

nix, and Marcus T. Baumann, Vice-President and Treas¬
urer, of Tucson, Ariz.

Underwriter—None.

May 29 filed American voting trust certificates for

cents

Price

The

par)

share

common

of Aug. 28, 1956; rights to expire on Sept.
be supplied by amendment.
Proceeds—

&

more

dividend

new

one

Price—To

stock

$6

of

11.

—For working

of

,

Ocean

owns

New England

& Oil

Nov. 8

Inc./ Whittieiy Calif.
July 16 (letter of notification) 27,000 shares of common
stock (par $10).
Price—$11 per share. Proceeds—For
equipment for new supermarket, and for construction of
new Drive-In at Anaheim, Calif.
Underwriter—Morgan

par).

.

Underwriter—None.

Oak Mineral

is President. *

shares

Under¬

11

Midland General Hospital, Inc., Bronx, N. Y.
Jan. 12 filed 24,120 shares of common stock (no

30,000

St., Chicago 10, 111.

stock

Jan.

and

Erie

NYPA Gas

July

ceeds—For

working capital. Address—Box 424, Drum¬
mond, Mont. Underwriter—None.

West

writer—None.

B stockholders of record Feb.

Price—$2

July 9

poses.

Investment Service Co.,

—

March 5

ceeds—To

10
Price—$1 per share. Proceeds—To repayment of
loans, to exercise option to purchase property now under
lease, for construction of a plant, and for further explo¬
ration, working capital and other general corporate pur¬

Underwriter

stock

corporate purposes; Underwriter—None. Unsubscribed
shares will be bought by Olin Mathiesen Chemical
Corp.,
and Laurence S. Rockefeller, the two
principal stock¬
holders.

cents).

Trust

city.

same

Marquardt Aircraft Co., Van Nuys, Calif.
June 25 filed 42,442 shares of capital stock
(par $1) be¬
ing offered for subscription by stockholders of record
Aug. 3, 1956, on the basis of one new share for each five
shares held (with an oversubscription
privilege); rights
to expire on Aug. 24.
Price — $36 per share. Pro¬
ceeds—From sale of stock, together with funds from
private placement of $2,000,000 of first mortgage 5%%
bonds, for capital improvement, equipment and general

Mica & Minerals Corp. of America (8/27)
June 13 filed 570,000 shares of common stock
(par

Bankers

Lithium Corp.,

Denver, Colo*

•

•

Office—800

Denver, Colo.
Dec. 27 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—
For mining expenses. Office — 556 Denver Club Bldg.,

California, Beverly Hills, Calif.

Mines, Inc.
(letter of notfication) 280,000 shares of common
stock (par 17V2 cents). Price—25 cents per share.
Pro¬
ceeds—For payment on properties;
repayment of ad¬
vances; exploration and development and working cap¬
ital. Office—508 Peyton Bldg., Spokane, Wash. Under¬
writer—Standard Securities Corp., Spokane, Wash.

taxes.

National Consolidated Mining Corp.
May 9 (letter of notification) 87,000 shares of common
stock (par one cent). Price—$3 per share.
Proceeds—
For mining expenses. Address — Salida, Colo.
Under¬
writer—Pummill Enterprises, Houston, Tex.

(with an oversubscription privi¬
on Aug. 30.
Price—100% (flat).
Proceeds—For working capital.
Underwriter—Dominick & Dominick, New York.
-

estate

Bldg.,
Des Moines, Iowa. Underwriter—T. C. Henderson & Co.,
Inc., Des Moines, Iowa. '
;

held

* Nuclear Instrument & Chemical Corp.
July 27 (letter of notification) 7,307 shares*o£ common
stock (par $1).
Price — At market (not to exceed an
aggregate of $50,000). Proceeds—To go to Earle B. Tit-

19

stock

lege); rights to expire

Mammoth

By-Products, Inc.
(letter of notification) 2,000 shares of common
(par $1). Price—$5 per share. Proceeds—To pay

June

Co.
Bids—Expected to be received up to 10 a m.
(CPT) on Sept. 12 at Room 1100, 231 So. La Salle St.,
Chicago 4, 111.
*

ton.

Mining Corp., Salt Lake City, Utah
Feb. 9 (letter of notification) 3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds—For mining expenses. Office—223 Phillips Petrol¬
eum Bldg., Salt Lake
City, Utah. Underwriter—Frontier
Investment, Inc., Las Vegas, Nev.
o
vV;:*;

filed

of

For mining, expenses
Office—2508 Auburn Ave., Cincin¬
—

Underwriter—Nope.

$19,109,000 of sinking fund subordinated
debentures due Sept. 1, 1968
(with warrants to purchase
191,090 shares of common stock) being offered for sub¬
scription by common stockholders of record as of Aug.
15, 1956, in the ratio of $500 of debentures to each 50
shares

Proceeds

Mormon Trail

Inc., 417 Lexington Ave., New

•

$60 per unit.

—

37

&

8%'
preferred stock (par $50) and
stock (no par), to be offered in
of

share of preferred and one share of commoh.'

and processing silica.
nati, Ohio.

—For general corporate purposes. Business — Manufac¬
tures steel and
aluminum specialty products.
Under¬
writer—C. J.
Montague,

July 27

common

one

Price

July 23 (letter of notification) 400,000 shares of common
stock (par 50 cents). Price—75 cents per share. Proceeds

York 17, N. Y.

Co., Cincinnati, Ohio
notification) 3,000 shares

of

convertible

units of

/•='

'yy;--

(letter

3,000 shares of

working capital. Office — Kimo
Bldg., Albuquerque, N. M. Underwriter—Carroll & Co.,
Denver, Colo. /
v,-'..
;w'y"

Macinar, Inc.

23

cumulative

and

expenses

(713)

Prudential

Federal

Uranium

Co.,
Larger deal

Corp.

(letter of notification) 6.000.000 shares of com-*

Price—Five cents per .share.
Underwriter—Skyline*
Securities, Inc., Denver 2, Colo.

mon

stock (par two cents).

Proceeds—For mining

•

expenses.

Puerto Rico Jai Alai, Inc.

(8/29-30)

filed $1,100,000 of 12-year 6% first mort¬
gage bonds
due July 1, 1968, and 220,000 shares of
common stock (par $1). Price—100% of principal amount
for debentures and $1.75 per share for the stock.
Pro¬
ceeds—For construction of fronton and related activities.
July

27

Office—San

Juan, Porto Rico.

Co., Houston, Texas; and Dixon

Underwriters—Crerie &
Bretscher Noonan, Inc.,

Springfield, 111.
R.

and

Feb. 14

stock.

P.

Minerals, Inc., Reno, Nev.

(letter of notification) 500,000

Price—At par (10 cents per

shares of commor*

share).

Continued

Proceed*on- page

38

The Commercial and

(7M)

38

Continued from page

Office—573 MiU_St., Reno, Nff.
Underwriter—Utility Investments, Inc., Reno, Nev»
Radium Hill Uranium, Inc., Montrose, Colo.
.

At par

June 14 (letter of notification) an undetermined number
of shares of common stock which when sold at the

Underwriter—Shaiman & Co., Denver,

Montrose, Colo.
Colo.'
" •' '

"

;

McNally & Co.
July 27 (letter of notification) not to
Rand

.1flno

,

Y

e

exceed 1,999 shares

$10) to be offered to shareholders
on the basis of one new share for each 125 shares held.
Price—$22 per share.
Proceeds—For working capital.

of common stock (par

Office—8255 Central Park Ave.,
—None.

.

■

.

.
-

13

/:

Y Y

Whetand Co., Chattanooga, Tenn.^

:

■

May 23. filed $2,000,600 of convertible subordinated de¬
2,160 shares of common stock (par $10). Price—Of pre*
bentures due June 1, 1976, artd 136,000 shares of common
ferred, $100 per share; and of common, $15 per share. ;
-the company's account and 61,000 shares for a "selling
Proceeds—For improvements and working capital. Of-/*
•stockholder.
Price — To be supplied by amendment.
(ice—909 West Sprague Ave., Spokane, Wash. Under¬
Proceeds—Together with proceeds from private sale of
writer—W. T. Anderson & Co., Inc., Spokane, Wash.
//
$1,500,000 4%% first mortgage bonds and $900,000 of
Sun Oil Co., Philadelphia, Pa.
v 3-year unsecured 4*4% notes to. a group of banks, will
'April 18 filed 229,300 shares of common stock. Price—At
be used to retire outstanding series A and series B 5%
the market. Proceeds—To selling stockholders. Under¬
/ first mortgage* bonds, and for expansion program. Under¬
writer—None.
writers—Hemphill,- Noyes & Co., New York; Courts &
Co., Atlanta, Ga.; and Equitable Securities Corp.. NashTampa Electric Co. (8/29)
:
*

(8/28)

capital stock. Price—$10
share. Proceeds—For construction of plant, working /

per

Securities Corp. of New Mexico
(letter of notification) 50,600 shares of common
stock.
Price—At par ($1 per share).
Proceeds—To start
a dealer or brokerage business.
Offiee—921 Sims Bldg.,
Albuquerque, N. M. Underwriter—None.

Feb.

_

Office—64 E. 21st South St., Salt Lake

capital and general corporate purposes.
Vickers Brothers, New York.»

Western

v

-Feb. 2 (letter of notification) 920 shares of 6% cumula¬
tive non-voting preferred stock ($100 per share) and

/April 20 filed 965,000 shares of
i

July 16 (letter of notification) 17,959 shares of common
stock (par $5) to be offered for subscription by common
stockholders of record July 23, 1956, on a l-for-20 basis
(with an oversubscription); rights to expire on Aug. 21.
Price—$12.50 per share.
Office—319 W. Market St.,
Lima, Ohio. Underwriter—None.

Underwriter—

Suburban Land Developers, Inc., Spokane^ Wash,

City, Utah. Underwriter—None.
Republic Cement Corp., Prescott, Ariz.

,

West Ohio Gas Co.

Offering—Temporarily deferred.

incident to mining operations.
R. Reynolds & Co.. Salt Lake City, Utah.

* Reliance National Life Insurance Co.
;
Aug. 6 (letter of notification) 4,000 shares of class B
non-voting common stock (par $10). Price — $40 per
share. Proceeds—For general operation of a life insur¬
company.

(J. P.)

expenses

Yj\/ Y

Washington Natural Gas Co.
18 (letter of notification) 187,500 shares of com¬
mon stock
(par 10 cents). Price—S1.25 per share. Pro¬
ceeds— For working capital.
Office — 217 Washington
Ave., Clarksburg, W. Va. Underwriters—Barrett Herrick & Co., Inc., New York, N. Y. and Ross, Borton &
Simon, Inc., Cleveland, Ohio.
*

Strategic Metals, Inc., Tungstonia, Nevada
Jan. 4 (letter of notification)" 1,200,000 shares of com¬
mon
stock.
Price—25 cents per sbare.
Proceeds—For

.granted to employees of company. Price—To public, $2
•per share. Proceeds—The first $3,000,000 will be used to
purchase or organize a legal reserve life insurance com¬
pany to be known as the "Reinsurance Company of the
South"; the remainder will be used for other corporate
'purposes. Underwriter—Luna, Matthews & Waites. .yyYY

III.

June

mortgage bonds and $368,679 of 6% preferred stock of
Underwriter—Goldman, Sachs & Co., New
York.

Inc., Evanston,

Inc., Chicago, 111.

subsidiaries.

May 25 filed 2,985,000 shares of commom stock, of which
2,485,000 shares are to be offered to public and 500,000
shares are to be reserved on exercise of options to be

Industries,

24

//

& Co., Inc., New York
$30,000,000 of debentures due July 1, 1981.
Price—To be supplied by amendment. Proceeds—To re¬
duce short-term loans, to retire $950,000 of 4%% first

Ala.

.,

(letter of notification) 7,000 shares of common
stock (par one cent). Price—$7 per share. Proceeds—
To selling stockholders.
Office — 2108 Jackson Ave.,
Evanston, 111. Underwriter—Arthur M. Krensky & Co.,

($10 per share). Proceeds—To repay a $1,400,000
by Equity General Corp., a subsidiary of

Stevens

.

_

Vance
Jan.

June 28 filed

Skokie, 111. Underwriter

Investment Corp., Birmingham,

Reinsurance

New York.

Equity Corp.; to liquidate existing bank loans and for
general corporate purposes.
Underwriter—None, but
Equity General Corp. has agreed to purchase at par,
plus accrued dividends, up to 290,000 shares
the new
preferred stock not subscribed for by stockholders. Lat¬
ter already owns 137,640 shares (3.23% ) of Sterling com¬
mon stock, plus $1,800,000 of its convertible debentures.

amount of $42 500.
Office—Bryant Brag.,

Proceeds—For raining expenses.

•

Thursday, August 16,1956

.

Underwriter—Kidder, Peabody & Co.,

pansion program.

held

note

bring in an aggregate

market wUl

'

..

Price—To be supplied by amendment. Proceeds—For ex*

by holders of outstanding common stock and series A
and series B preferred stock in the ratio of one share
of new preferred stock for each four shares of series A
or series B preferred stock and
one share of new pre¬
ferred for each 10 shares of common stock held. Price—

37

For Tnining expenses.

ance

Financial Chronicle

„

Underwriter—

/Aug. 1 filed $10,000,000 of first mortgage bonds due 1986.
villeY Tenn. Offering — Temporarily postponed. Not
Security Loan & Finance Co.
Proceeds—To repay 'bank loans and for construction-/ / expected until sometime in September or October.
?
July 17 (letter of notification) 200,000 shares of common
program.
Underwriter—To be determined at competi¬
White Sage Uranium Corp.
'Stock (par $1). Price—$1.50 per share. Proceeds—For
•
* *
i
tive bidding.
Probable bidders: Halsey, Stuart & Co.
expansion program. Office—323 So. State St., Salt Lake
Feb|13 (letter of notification) 15,000,006 shares of capi-City, Utah. Underwriter—Whkney & Co., also of Sajt - inc.; Stone & Webster Securities Corp.; Goldman, Sachs-. Ytal stock. : Price—At par (one-cent per share). Proceeds
Lake City.
;& Co.; Kidder, Peabody & Co. Bids—Expected.to be
":
;
- Y/-/' ; YY" YY
—For mining expenses. Office—547 East 21st South St.,
"received up to 11 a.m. (EDT) on Aug. 29, at 90 Broad
Shangrila Uranium Corp.
^
I
"Salt/Lake City, Utah. Underwriter—Empire Securities
St., New York, N. Y.
YYY- 7>,Y/
YY'
Dec. 30
of
„

notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share). ProceedsTor mining expenses. Underwriter—Western States In¬
vestment Co., Tulsa. Okla.
* ■"*» ^

Corjfc, Salt Lake City, Utah./

.

(letter

■

Corp.

March 16 filed 470,000 shares of common stock

cents).

Price

—

At the market.

Proceeds

—

(par 10 i
To selling

■

Thermoray Corp.
29 (letter of notification) 380,000 shares of com¬
mon stock (par 10 cents).
Price — 75 cents per share.
'Proceeds—For inventory, working capital, etc. Business
—Electrical heating. Office—26 Avenue B, Newark, N. J.
Underwriter—Eaton & Co., Inc., New York,
r
v/

Underwriter—None.

stockholders.

$6.84 Jper share.

June

it Snow Mountain Inn., Inc.
Aug. 3 (letter of notification) $291,000 of non-interest
bearing debentures due Aug. 8, 1966, and 8,730 shares of
common stock (par $1) to be sold in units consisting of

^ Southern Nevada Power Co.

(9/18)

.

;

;

*

at

the

State

Automobile

Insurance

-

Sterling Precision Corp., New York
July 9 filed 379,974 shares of 5% cumulative convertible
preferred stock, series C, to be offered for subscription




/Wyoming Oil & 'Gas Co.'/>: ;Y,

July/9 (letter of notification) 200,000 shares of common
stbekir Price—At par (25 cents per share).
Proceeds—
Fdr development of oil and gas properties.
Office—1529

\t

SojatM Forest
7

St., Denver, Colo.

Jewell Co., Denver,-- Colo.

.•

(letter of notification)

Universal
.

.

.

//YYv;Y

300,000 shares of

com¬
'

-Acme Steel CO.

Investors* Inc., Shreveportk, -La.

.

■'

June 27 filed 300,000 shares of commorr stock (no par).
Price —r $5 per share. Proceeds -r- To organize a new

wholly-owned legal
der Louisiana

laws.

reserve

life insurance company

Underwriter—Frank

Keith &

Inc., Shreveport, La.

;

un¬

Co.,
.

.

Universai-Rundle Corp., New Castle, Pa.
July 27 filed 50,000 shares of common stock (par $10)
to be offered for subscription by certain employees of
company. Price—$18.50 per share.
Proceeds—To Sears,
.

■,

.

-

Roebuck

&

Underwriter—Wayne
//■/ r:rY Y-/r*' .'

:"

Underr*^*«»w-~Mfckle&
Offering—Put off indefinitely.
?

Universal Fuel & Chemical Corp.
;
v? —Y
May 17 (letter of notification) 300,006 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Office—825 Broadway, Farrell, Pa. Under¬
writer—Langley-Howard, Inc., Pittsburgh, Pa.
V Y;v;

Association."

Commissioner of the State of Indiana to
begin business.
Underwriter—None.

Wood

filed

Offiee^—Phillips, Wis. Underwriter—None.

capital. Underwriter*-N. R. Real & Co., Jersey City, N. J.

50 shares of stock.

Price—Proposed maximum is $7.50 per share. Proceeds
—To obtain a certificate of
authority from the Insurance

a

Products, Inc.
74,016 shares of common stock; (par $5)
to be offered initially for sale to the present stockhojdei's. It is not expected that more than 42,5(0 shares
will be sold immediately.
Price—$10 per share.
Pro¬
ceeds—For lease of plant and purchase of eqiipment
;

stock (par one cent). Price—$1 per share. Proceeds
—For exploration and drilling costs and for working

Secu¬

Underwriters, Inc., "Attorneys-in-Fact for the Subscrib¬

Wisconsin

mon

ir Springfield Citizens Tribune, I**e.
Aug. 13 (letter of notification) $200,000 of 6% deben¬
tures due July 1,1968 and 10,000 shares of common stock
(par $10) to be offered in units of a $1,000 debenture and

ers

Co., Houston, Texas.
July 16

Statesman Insurance Co.,
Indianapolis, Ind.
July 3 filed 200,000 shares of common stock (par $2.50)
to be offered to agents and
employees of Automobile

'

4

Proceeds
golf house and other improve¬
Underwriter—None.
/
v

June 25

.

May 25 filed 200,000 shares of common stock (par $10).
Price—To be
supplied by amendment.
Proceeds—To
selling stockholders. Office—Chicago, 111. Underwriters
—Alien & Co., Bache & Co. and Reynolds & Co., Inc.,
all of New York. Offering—Postponed indefinitely.

United States -Mining & Milling Corp;

Southwestern Resources, Inc., Santa Fe, N. M.
June 8 filed 1,000,000 shares of common stock
(par 25
cents). Price—$5 per share. Proceeds—To exercise op¬
tions, purchase additional properties and for general

Price—$1,500 per unit. Proceeds^-For
.expansion, machinery and working capital. Office—910
S. 9th St., Springfield, 111. Underwriter—None.

share. Proceeds

Union of Texas Oil Co., Houston, Texas

($1,000 per debentures).

par

Jacinto Building, Houston. Tex

Washington Bldg., Washington, D. C. Under¬

corporate purposes.' Underwriter—Southwestern
rities Co., Dallas, Texas.

per

Jan. 19 (letter of notification) 240,000 shares of common
stock (par 10 cents). Price—$1.25 per share. Proceeds—
For expenses incident to oil production. > Office
San

writer—None.-

:

Price—$1

ments.

Union Chemical & Materials Corp.

Southwestern Oklahoma Oil Co., Inc.
: "
Feb. 27 (letter of notification) 15,001 shares of common

Office—801

tures^ due 1991, to be offered to the members of tlie
Club,; Price—At

>

—Federal Investment Co., Washington, D. C.

Inc.; William R. Staats & Co. and Hornblower &
Weeks (jointly); White, Weld & Co.; Merrill Lynch,
Pierce, Fenner & Beane. Bids—Tentatively expected to
be received up to noon (EDT) on Sept. 18 at First
National City Bank of New York, 2 Wall St., New York,
N. Y.
•
: "• Y'Y-

ftock (par 10 cents) to be offered for subscription by?
stockholders. Price—$10 per share. Proceeds—For ex¬
pensed incident to development of oil and gas properties.

cents).

Country Club, Inc., Wilmington, Del.

/:—For .instruction of

—For working capital and general corporate purposes.
Office—381 Fourth Ave., New York, N. Y. Underwriter

;

& Co.

'

stock (par 10

Wilmington

April 2 filed $1,500,000 of non-interest bearing deben¬

Togor Publications, Inc., New York
mon

Proceeds—For working capital. Office
Road, Cincinnati, Ohio.
Underwriter—

None.

;

March 16 (letter of notification) 299,706 shares'of com¬

,Y/YY"YYY///YYi

Aug. 10 filed $4,000,000 of first mortgage bonds, series
C, due 1986. Proceeds — To repay bank loans and for
construction program. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart

—3500 Maison

,

$1,000 debenture and 30 shares of stock. Price—
$1,030 per unit. Proceeds—For working capital. Under¬

one

writer—None.

-

.

Shoni Uranium Corp.
July 13 (letter of notification) 6,000,000 shares of com- i
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For expenses and working capital. AddressBox 489, Riyerton, Wyo. Underwriter —^Carroll*& Co.,
'Denver, Colo.
Skiatron Electronics &'Television

/

•

Target Uranium Corp., Spokane, Wash, - M
.★ Wildcat Mountain Corp., Boston, Mass.
Y
March 1 (letter of notification) 1,000,000 shares of com¬
Aug/; 13 filed $860,006 of 6% subordinated cumulative
mon stock
(par five cents). Price—20 cents per share.// debentures due Dec.
1, 1976, and 6,000 shares of common
Proceeds—For mining expenses. Office — 422 Paulsen
stock (no par) to be offered in units of a $400 debenBldg., Spokane, Wash. Underwriters—Percy Dale Lan- ; turevand three shares of stock. Price — $500
per unit.
phere and Kenneth Miller Howser, both of SpokanC,
Proceeds—For construction and working capital. Busi¬
Wash.
ness—Mountain recreation center.
Underwriter—None;
Texas Calgary Co., Abilene, Texas
*
offering to be made by officers and agents of company.
June 29 (letter of notification) 300,000 shares of common
Williamson Co., Cincinnati, Ohio
•
-5 :
stock (par 25 cents).
Price—$1 per share. Proceeds— ; Feb; 20
(letter of notification) 20,666 shares of class ;B
For drilling for oil "and gas expenses.
Underwriterconjmon stock (par $1) to be offered for subscription by
Thomson Kernaghan & Co., Ltd., Toronto 1, Ont., Canada.
class B common stockholders on a l-for-7 basin. Price—

Co., the selling stockholder.

Underwriter—

None.

it Vanadium Corn, of America A9/5)
. /
Aug. 14 filed $10,000,000 of convertible^ debentures due
Sept; 1, 1976, to be offered for subscription by common
stockholders of record on or about Sept. 5 at the rate of
$100 of debentures for each 13 shares of stock held.

Ju|y/31 it wais announced stockholders on Sept. 12 Will
vojte on approving an amendment to the company's

ch^rfer .whereby -the stockholders will waive
emptivb, rights to
additional

a pro

shares of

rata Share of

common

stock

an

tlieir pile-;

issue of 406.600

(par $10). Proceeds

;F§r- exoansion program. Underwriters
Probably
-B^ythv& ;Co.,t Inc. -and Merrill Lynch, Pierce, Fenner
—<

&|Be^ne* both of New York.

' Y v Y V Y
■
[AirrVue Products Corp., Miami,. Fla. Y '
;
F^b;Y29 it was reported;early registration is expected

•r;

Of( 150^006

sharesr of common stock. Price-r-Around $4.25
sfeare. Proceeds — For expansion program. Underwritefc—Arthur M. Krensky & Co.; Inc., Chicago, Til. *

pey

-

^American

Aug. -2 it

Insurance Co., Newark, N. I.
announced that. a registration statement

was

would be filed in August covering

a

proposed issue of

1,750,006 shares of capital stock (par $2.50) to be offered
in eXchange on a
of

share-for-share basis for a like number
;Bhates of capital stock of American Automobile In¬

surance

Co. of St. Louis, Mo.

be conditioned
than 80%

The exchange offer will

acceptance by the holders of not less

of the outstanding shares of the latter com¬

T^e
September.
pany.

on

offering

will

be

made

sometime

during
j

»yiuinc

x%j-x

uuiuvi

x rtc~i>u<i»jiVi>^vt.vc.» ,ttfw*

uuuu

j("»rvu/i,CluV'

i/rntic "

oiu

(715)
American Louisiana

Pipe Line Co.

-

.

it Delaware Power & Light Co.

_

July 2 it was announced company plans issue and sale
of $15,000,000 of cumulative preferred stock. Underwriter

—May be determined by competitive bidding.. Probable
bidders: White, Weld & Co.; The First Boston Corp. Of¬
fering—Expected in fourth quarter of 1956.
1 ;

June

it

14

>

announced

Panhandle

tunity to subscribe to additional "A"

stock of American

Petrofina.
Co.

Price—$11 per share. Underwriters—White,
Co.; Blyth & Co., Inc.; and Hemphill, Noyes & '

&

Offering—Expected in October.

Nov.

shares

to

000 shares

expected to be offered

Oct.

on

Du

:

suance

announced

was

December

company

Dffered
&

was

-

|

/Y1 Boiilder Acceptance Corp., Boulder,. Colo;Yv>YYf
July 16 it was announced company plans to' offer and.
sell 3*000,000 shares of its common stock. Price—At
par

July 16 it
000

of

was announced

company

:

6

Co.
.

Inc.;

The

First

Boston

Corp.

and

Salomon

Carolina

Power

&

Light Co.

March

Public!

Utilities

year

for

that

a

.

July 16 it

was

between

Dallas

Rhoades

&

Co.,

and

Co.

tion program.

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Blyth & Co., Inc.,
Merrill Lynch, Pierce, Fenner & Beane and Stone &
Webster Securities .Corp. (jointly); Glore, Forgan &
The First Boston Corp.; Lehman Brothers and

Co.;
Bear,

first

offered

Expected

to

(jointly).

Common stock will probably be
for subscription by stockholders.1
Bidsbe received on Oct. 23/
Registration —

Planned for Oct.

1. T-

'

>

-

may

be necessary.

x

Rapids, Wis.

about

Underwriter

—

Loewi

&

Co.,

Milwaukee, Wis.

,\-

Hawaiian

July 30 it

it Chicago & Illinois Midland Ry.
was announced company plans to issue and sell

Aug. 14 it

issue of up to $9,000,000
first mortgage bonds. Proceeds — To retire
outstanding
an

4%% notes and for purchase of leased equipment.
Coastal

Feb. 29 it

Transmission
was

announced

Corp., Houston, Texas
application has been filed

an

the FPC for construction of a 565.7 mile
pipeline
system to cost $68,251,000. Underwriters—May be Leh¬
man Brothers and
Allen & Co., both of New York.
Columbia Gas

7

Aug.

it

was

$25,00(^000

of

System, Inc.

announced

debentures.

(10/2)

company

may

issue

Underwriter—To

and

be

sell

deter¬

mined

by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co.
Bids—Expect¬
ed to be received on Oct. 2.
Crane

F.

Co., Chicago, III.
President, on March 18 stated
.

F. Elliott,

meet

the

it appears
sary "

cost

-w

in

•

-

part: 'To

of

present proposed capital expenditures,
that some additional financing
may be neces¬

Underwriters—Morgan Stanley & Co. and Clark,

Dodge & Co.




i

Probable

.

$1,500,000

bonds

debentures.

or

500,000.

Telephone Co.

Co.'s

«

.

*;«

investment will

be

approximately $5,-

Underwriter—Probably Kidder, Peabody & Co.,

New York.

Herold

July 25 it

.'■

/■>

Radio
was

:'-vY
& Television

Corp./>V;,:
on Aug. 10 will

announced stockholders

increasing the authorized common stock from
400,000 shares to 1,000,000 shares, in order to provide
options (to officers and employees), and for future fi¬
nancing. Underwriters—Weill, Blauner & Co., New York,
and

bidders:

Halsey, Stuart & Co. Inc.; The First

(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
Union Securities Corp. (jointly); Lehman Brothers
Bear, Stearns & Co. (jointly). Amount and timing
has not yet been determined
(probably not until first
and

and

half of 1957).

Kay Jewelry Stores, Inc., Washington, D. C.
Aug. 6 it was reported company plans early registration
of an issue of common stock for
public offering in Sep¬
tember.

Underwriter—Lazard Freres &

Liebernecht

Co., New York.

(Karl), Inc.

reported the Office of Alien Property plans
competitive sale its holdings of 63% of the
common stock of this
company, which owns the Quaker
State Metal Products Corp., of
Lancaster, Pa., an alumi¬
to

was

offer

at

fabricator.

num

-

■.

Long Island Lighting Co.
April 17 it was announced company plans to issue and
sell next Fall $20,000,000 to $25,000,000 first
mortgage
bonds. Underwriter
To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
W. C. Langley & Co.; Blyth & Co., Inc. and The First
Boston Corp. (jointly); Blair & Co., Incorporated and
Baxter, Williams & Co. (jointly); Smith, Barney & Co.
—

Marsh

July
sell

3

Steel

it

was

Co.

additional

some

|

reported

pansion program.

company

common

plans

stock.

to

on

High Authority of the European Coal and Steel
Community, Luxembourg
July 9 this Authority announced that an American bank¬
ing group consisting of Kuhn, Loeb & Co., The First
Lazard

Freres

&

Co.

has

been

May Department Stores Co. '
July 19 it was announced that this company may under¬
take financing for one or more real estate companies.
Proceeds

For development of branch stores and re¬
gional shopping centers. Underwriters—Goldman, Sachs
—

Brothers, New York.

Metropolitan Edison Co.

•>,

July 2 it

(11/13)

reported that company is considering thd
sale of $10,000,000 first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬
was

Halsey, Stuart & Co. Inc.; White, Weld &
Co.; Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel
& Cok (jointly); The First Boston Corp.
Bids—Expected
Nov. 13.

on

Y

Metropolitan Edison Co.
? April 16 it was reported company may issue in July
or
August, depending upon market conditions, about
$5,000,000 of preferred stock (in addition to about $8,000,000 of bonds).
Underwriter — For preferred stock also
Y

bidding. Probable bid¬
Smith, Barney & Co. and Goldman, Sachs & Co.
(jointly); Salomon Bros. & Hutzler; Harriman Ripley &
Co. Inc. and Union Securities Corp. (jointly);
Kidder,
Peabody & Co. and Drexel & Co. (jointly); The First
Boston Corp.
ders:

Michigan Bell Telephone Co.
April 19 company applied to the Michigan P. S. Com¬
mission for permission to issue and sell $30,000,000 of
40-year debentures later this year. Proceeds—For con¬
struction program.
Underwriter—To be determined by

Minneapolis Gas Co.
April

16

stockholders

authorized
to

underwritten

approved

increase

an

Houston Texas Gas &

ore

by Kalman & Co., St. Paul. Minn.

Birmingham, Ala.
July 23 it was reported early registration is expected of
200,000 shares of common stock.
Price—Expected at $3
per

share.

Business

Proceeds

—

equipment.

—

For general corporate purposes.

Manufactures

swimming pools and related
Underwriters—Mid-South Securities Co. and

Clark, Landstreet & Clark, Inc., Both of Nashville, Tenn.
Continued

y

For Finest

on

Hudson

June

was

announced

Quality Printing
F

that its

inancial world knows

I

The

mines.

mportant

Need

documents

the

Oil

Corp., Houston, Texas
application has been filed
with the FPC for permission to construct a 961 mile
pipeline system to cost-$105,836,000. Hearing on this
project started on July 9. Underwriters—May be Blyth
& Co., Inc., San Francisco, Calif.; and Scharff &
Jones,
Inc., New Orleans, La.
Feb; 29 it

an

Utmost

in

E

xperience,

Skill

and

T

amply provided by—

aste

Pulp & Paper Corp.

25

it was reported company may in the Fall do
public financing.
Proceeds—For expansion. Un¬
derwriter—Lee Higginson Corp., New York.

some

it Indiana National Bank, Indianapolis, Ind. (8/24)
Aug. 9 it was announced that Bank plans to offer to
stockholders of record Aug. 24, 1956, the right to sub¬
scribe on or before Sept. 13 for 125,000 shares of capital
stock (par $20) on a l-for-4 basis.
Prices—About $62
per share.
Underwriter—Blyth & Co., Inc., New York.

the

(par $1) from 1,700,000 shares
Previous offer to stockholders was

National Pool Equipment Co.,

loaned to firms in the Community for expansion of coal

plants and iron

in

stock

common

2,500,000 shares.

ap¬

pointed to study the possibility of a loan to be issued
on the American market.
The time, amount and terms
will depend on market conditions.
Proceeds — To be
power

ex¬

Lincoln, Neb., Stock Increase—Stockholders will vote
on increasing authorized common stock from
100,000 to
200,000 shares.
\
:,-yV:
:-

Y/*

and

and

Underwriter—The First Trust Co. of

Hallowell, Sulzberger & Co., Philadelphia, Pa.

Corp.

issue

Proceeds—For

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.

-

cable and, if approved by the directors on Aug. 16, will
be probably be financed by a debenture issue. Hawaiian

Telephone

increasing

Boston Corp. and Blyth & Co., Inc.
(jointly); Equitable
Securities Corp.; White, Weld & Co. and Shields & Co.

was

mines, coking plants,

with

•

to

announced that company plans to acquire
a 15%
participation with American Telephone & Tele¬
graph Co. in a proposed $36,700,000 California-to-Hawaii

Boston

through negotiated channels

reported company may be considering sale

-

proposal

.

Manufacturing Co.

•

a

to be determined by competitive

a

midway
M. Loeb,

TTnderwriter^-May be G. H. Walker & Co., St. Louis and

vote

-

Central Wisconsin Motor Transport Co.
July 9 it was reported early registration is expected
of 34,600 shares of 6% convertible
preferred stock (par
$10) and 66,500 shares of common stock (the latter to
be sold by certain stockholders).
Proceeds—From sale
of preferred to provide funds for expansion.
Office—
Wisconsin

Haskelite

New York.

(10/23)
Aug. 13 it was reported company plans to issue and sell
170,000 shares of common stock. Proceeds—For construc¬

Stearns & Co.

-

planning

sites

Worth, Tex.
Carl
York, who has acquired a sub¬
corporation, may handle any new

stantial interest in the

financing that

two

on

Fort

New

was

Public Service

(Texas)

announced this corporation is

$1,000,000

Illinois

.

Great Southwest Corp.

~

July 16 it

Bids—Scheduled for Nov. 27.

company;

common stockholders before April,
1957.' Proceeds—To repay bank
loans, etc., and for con¬

struction program.

approved

able bidders:

Corp.-

subscription by

Of

(jointly); Equitable
& Co., Inc.; Kidder, Peabody &
Pierce, Fenner & Beane (jointly)

$5,000,000

new preferred stock.
It is also pos¬
issue of common stock will be offered

new

City Power & Light Co.

stockholders

& Co. and Lehman

/■

to issue and sell $28,500,000 of new bonds

Securities Corp.; Blyth

Central

Corp., St. Louis, Mo.

announced that company plans

was

Co. and A. C, Allyn & Co. Inc.
(jointly); W. C. Langley
& Co. and The First Boston Corp.

•

Instrument

5,000-acre industrial development

(11/27)

22 it was announced
company plans to issue and
sell $15,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co
Inc.; Kuhn, Loeb &

Co. and Merrill Lynch.

&

$14,000,000 of

sible

Bros.

(jointly); Lehman Brothers; White, Weld &
Bids—Expected to be received on Oct. 9.

Camera

General Contract

plans this

Co.; Merrill Lynch, Pierce, Fenner &
Kidder,' Peabody
Co. (jointly); Blyth &

Hutzler

un¬

.

and

Inc.? Shields
Co.,

will be

April 2, Al Ft Tegen, President, said that the

first

and

offering

it Flair Records Co./'
/
Aug. 13 it was reported company plans to issue and sell
to residents of New York State
50,000 shares of common
stock.
Price—$2 per share. Underwriter—Foster-Mann,
Inc., New York.
;<
i
'

General

(10/9)- ' V
plans to sell $8,000,-

program.

Beane

This

additional financing in near future. Proceeds—To go to :
Securities Investment Co., a subsidiary. Underwriter—
G. H. Walker & Co., St. Louis, Mo.

:

mortgage bonds.
Proceeds—For construc¬
Underwriter—To be determined by com-,
petitive bidding. Probable bidders: Halsey, Stuart & Co.
tion

stockholders.

Corp.
June 11, John H. Clough, President, announced that
working capital financing will be required in the near
future. Underwriter—Glore, Forgan & Co., New York-

April 18 it

Proceeds—To construct hotel; set up in¬
stalment loan company; and for working
capital and
general corporate purposes. Underwriter—Allen Invest--

Stock to be sold in Colorado.

Mont

some years ago.
Stockholders of Laboratories
Oct. 10 approved formation of Broadcasting firm.

-

share).

California Electric Power Co.

Du

Kuhn, Loeb & Co. and Van Alstyne, Noel
handled Du Mont Laboratories class A stock fi¬

Fairchild

,

jRient Co., Boulder/ Colo.

B.

Y/.Y

|>y competitive bidding. Probable bidders: W. C. Langw.; «»toiie /oc »»ebster Securities Corp.; Salomon
Bros. & Hutzler; Kidder, Peabody & Co.; Harriman
Rip¬
ley & Co. Inc. Bids—Expected to be received on Sept. ll.;
Registration—Planned for Aug. 15.
■'
*

per

Allen

was reported company plans to issue and sell
about 200,000 shares of class A stock.. Price — Around
$4.50 per share. Underwriter — Vickers Brothers, New
York.

(

shares cumulative preferred stock (par $100). Proceeds
——■To reduce bank loans. Underwriter—To be determined

($6

of

Eternalite, Inc., New Orleans, La.

(9/11)
plans to issue 25,000

reported company

its

to

24

bonded indebtedness of the company by
$20,000,000. Un¬
derwriter — To be determined by competitive
bidding.

Aug. 6 it

corporation, following Is¬

stockholders

May 28 it

Blackstone Valley Gas & Electric Co.

/ April 30 it

Co.

on

(jointly); The First
<

to

nancing

plans to issue and

$24,000,000 of first mortgage bonds.

Co., Inc.

2

derwritten.

Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Union Secu¬
rities Corp. and Kuhn, Loeb & Co.
Boston Corp.; Harriman Ripley &

announced that

Dec.

Laboratories, Inc. of 944,422 shares of common stock as
dividend, contemplates that additional shares will be

Appalachian Electric Power Co.
in

Broadcasting Corp.

was

on

t

'

May 31 it

Mont

\ug. 10 it

1 for sub¬

scription by stockholders of record Sept. 14 on the basis
of one new share for each 10 shares held.
Rights are to
expire on Nov. 5, 1956. Price—$100 per share. Proceeds
—For expansion of plant.. Underwriter—None.

sell

was

a

April

.

100,000,000 shares of which about 5,750,-

are

it

Intends at

• American
Telephone & Telegraph Co. (10/1) ,:Jf
July 18 company announced stockholders will vote Sept. Ok
5 on increasing the authorized
capital stock from 60,000,-

000

15

announced that Foremost
Dairies, Inc.
future date to give its stockholders the
right
to
purchase its Dolly Madison stock.
UnderwriterMien & Co., New York.
■:
:'
y,

,Y

-

raise about

Dolly Madison International Foods Ltd.

/

Kansas

;

plans to

company

by comeptitive bidding.
Probable bidders:
White, Weld & Co. and Shields & Co. (jointly);
Kidder,
Peabody & Co. and Harriman Ripley & Co., Inc. (joint¬
ly); Kuhn, Loeb & Co. and Ladenbiirg, Thalmann & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane; Leh¬
man
Brothers; W. C. Langley & Co. and Union Securities
Corp. (jointly); Blyth & Co., Inc., and The First Boston
Corp. (Jointly). Offering—Expected before end of 1956.

that
following proposed
Oil Corp., American Petrofina,
Ltd. will offer to stockholders of Panhandle and Petro-^
fina of Belgium and to Canadian Petrofina the oppor¬

Weld

reported

termined

Petrofina, Inc.
was

merger with

was

$8,000,000 through the sale of preferred stock. Proceeds
—For1-construction program.
Underwriter—To be de¬

^

; American

13 it

Aug.
*

39

hndtef(fPress, Inc.
Established 1923
22 THAMES ST.. NEW YORK 6

71 CLINTON ST.. NEWARK.

Leaders in Financial Printing Since

N. J.

1923

page

40

The Commercial

39

Continued from page

Pacific Northwest Pipeline

March

the company

12

announced that it is estimated

construction expenditures planned to start in the current year and to be completed in mid-1959 will
amount to a minimum of $200,000,000. Underwriters—
Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.; and •

that total

The First Boston

1

Corp.

Line Co. of America
Feb. 20 it was reported company plans to issue and sell
late this Spring $35,000,000 of first mortgage bonds due;
1976.
Underwriter—If determined by competitive bid¬
Natural

Gas

rities Corp.

(jointly).

,

/

,

.

1(,

England Electric System,
Jan. 3 it was announced company plans to merge itax
lubsidiaries, Essex County Electric Co., Lowell Electric)
Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one cortipany f
during 1956. This would be followed by a $20,000,000
first mortgage bond issue by the resultant company, the
name of which has not as yet been determined.
Under¬
writer — May be determined by competitive bidding.)
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
?

New

Pierce, Fenner & Beane, Kidder,
Weld & Co. (jointly).

New England Power

-

Jan. 3 it was

to $60,000,000 on a revolving bank loan which will be
reduced through the sale of bonds to institutional in¬
vestors as well as the general public. Proceeds—To pay,

up

part, for cost of new power

in

mated

Pocahontas Fuel Co.,

offering of approximately 200,000 shares of capital stock,
consisting of shares held in the treasury and by certain
Underwriters—Morgan Stanley & Co. and
F. S. Smithers & Co., both of New York. Offering—Ex¬

offer 1,145,011 additional
stockholders of record,
around Sept. Y, 1956, on a l-for-6 basis; rights to expire
on Sept. 24.
Price—Expected to be fixed on or about
Sept. 6. Proceeds—About $40,000,000 for working capital,
equipment, etc.
Underwriter—Morgan Stanley & Co.,
New York. Registration—Expected today (Aug: 16).

pected in September.
Post

Offshore Gathering Corp.,

Houston, Texas

C. Bintliff,; President, announced

Public

com¬

$30,000,000 first mortgage bonds.

(10/17)

»

Racine

sell

some

additional

common

stock.

Underwriter—Loewi

in

Underwriter

Co.




Z ~

J

v,.T

~j" "

-- s

-*

this year. Underwriters—White,
Webster Securities Corp.

Weld & Co.; Stone &

it Uirich Manufacturing £o.,"Roanoke, III.
Aug.-13 it was reported early registration is expected of
50,000 shares of common stock. Price—About $6.50 per
share. Proceeds—For general corporate purposes. Busi¬
ness—Manufactures road building and hydraulic equip¬
ment. ^Underwriter—White, & Co., St.. Louis, Mo.
it Underwood Corp.
Aug. 13 it was reported that company may offer pub¬
licly this fall an issue of convertible debentures. Under¬
writer—Lehman Brothers, New York.
United
June

States Rubber Co.

29,; H; E. Humphreys, Jr., Chairman,
of convertible debentures is one

stated that

issuance

Ry.

(9/5)

convertible

working capital. He added that, if
will be offered
stockholders. Underwriter—Kuhn,

pro

debentures are issued, they

rata to common
Co., New Yoik.

Loeb &

Co., Norman, Okla.
President., announced company
200 stockholders 500,voting stock at rate
of not more than 2,500 shares to each stockholder. Rights
will expire on Aug. 1. Unsubscribed stock will be of¬
fered to residents of Oklahoma only. Price—$2 per share.
University Life Insurance

-

June

21, Wayne Wallace,

plans in near future to offer to its
000 additional shares of common

Underwriter—None.

Virginia Electric & Power Co. (9/25)
announced company plans to issue and sell
$20,000,000
of first
and refunding
mortgage bonds.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
Feb. 6 it was

Co., American Securities Corp. and WertheirrL& Co.
(jointly); Salomon Bros. & Hutzler; Stone & Webster
Securities Corp.; White, Weld & Co.; Union Securities

&

Bids—To be opened on Sept.

25.

Washington Gas Light Co.
June 7 it was announced company proposes

-

to finance
construction of pipeline in Virginia to
cost about $3,380,000 from funds generated by operations,
it Sears, Roebuck & Co.
sale of common stock and temporary bank borrowings.
Aug. 13 it was reported that company may be consider¬
ing new financing. Proceeds—To repay $200,000,000 t^ank). •^Underwriter — The First Boston Corp., New York; and
Johnston, Lemon & Co., Washington, D. C.
loans.1 Underwriter—Goldman, Sachs &. Co.. New York.
360,000 shares of class A common stock.

Underwriter

—Johnson, Lane, Space & Co., Savannah, Ga.

;

several

plant expansion and

for

Corp.

of

proposed

a

)

of

possible methods the company has been considering for
raising $50,000,000 to $60,000,000 which may be needed

it Scripto Inc., Atlanta, Ga.

Weld & Co. (jointly); The First Boston Corp.; Lehman
»" "rV7.V:j",

Line Corp.

Aug. 6 it was reported that early registration is planned

■Brothers and Blyth & Co., Inc. (jointly); Smith, Barney
& Go.; 'Kuhn, Loeb & Ce.J Harriman Ripley & Co. Inc.
w.~r

Francisco

$61,600,000 of 50-year
income 5% debentures, series A, due Jan. 1, 2006, and
not exceeding 154,000 shares of common stock (no par)
in exchange for not exceeding 616,000 shares of 5% pre¬
ferred stock, series A (par $100) on the basis of $100
of debentures and one-quarter of a share of common
stock for each share of preferred stock.
The exchange
will begin early in September and expire at 3 p.m.(EDT)
on
Oct. 1, 1956.
The Chase Manhattan Bank, of New
York
City, has been designated as exchange agent.
Dealer-Manager—Union Securities Corp., New York.

May 17 stockholders voted to increase the authorized
preferred stock from 240,000 shares to 500,000 shares and
the authorized common stock from 3,681,000 shares to
5,000,000 shares. Company has no immediate plan to do
any equity financing.
Underwriters—(1) for any com?mon stock (probably first to stockholders) — Merrill
Lynch, Pierce, Fenner & Beane. (2) For preferred stock,
to be determined by competitive bidding. Probable bidbers: Merrill Lynch, Pierce, Fenner & Beane and White,

i

Louis-San

Offering—Expected in Sept.

the railroad to issue not exceeding

—None.

i*

it Transcontinental Gas Pipe

Aug. 13 it was reported company may offer to it$ stock¬
holders about $7,000,000 additional common stock later

,

Co., Milwaukee, Wis.
St.

the State of Oklahoma $20,000,000 of its capital
($10,000,000 within organization and $10,000,000
publicly). Proceeds—To organize or acquire seven sub¬

'

,

Transmission Co;\r
May 10, Gardiner Symonds, President^ announced that
company
plans to sell about $50,000,000 of mortgage
bonds late in the third quarter or early in the fourth
quarter of 1956.
Proceeds — For expansion program.
Underwriters—Stone & Webster Securities Corp., White,
Weld & Co. and Halsey, Stuart & Co. Inc.

Hydraulics & Machinery, Inc.
,
July 9 it was reported that company plans to issue and
•

stock

Electric

-

....

Tennessee Gas

Boston

July 20 the Interstate Commerce Commission authorized

&

comihori stock^first

Proceeds—For con¬
Underwriter—Dill on,xRead & Co.,
.
'

program.

New York.

Underwriter—

Oklahoma Corp., Oklahoma City, Okia.
July 26 it was announced company has been authorized
by the Oklahoma Securities Commission to issue and

Gas

struction

by competitive bidding. Probable bid¬

&

company.

/ '

Underwriter—None.

gage bonds audi$£,$00;()09 additjon^
to stockholders on a 1-for-20 basis. '

Puget Sound Power & Light Co.
that it estimates that its
construction
program
for the
years
1956-1959 will
amount to $87,000,000, including $20,000,000 budgeted for
1956.
This large expansion, the company says, can be
financed wholly by debt and from internal sources. Un¬
derwriter—If determined by competitive bidding, may
include Halsey, Stuart & Co. Inc.; The First Boston Corp,

(jointly); Lehman Brothers. Bids—Tentatively expected
11 a.m. (EDT) on Oct. 17.

Oklahoma

oversubscription privilege).

Inc.

to be received up to

holding

?

it Southwestern Public. Service- Co.,.. ^ *
Aug. 7 it was announced .company -plans r. to). issue, and
sell in February or March, 1957, $5,000,000 of first mort¬

Feb. 15 the company announced

July 2 it was reported company proposes to issue and
sell 60,000 shares of cumulative preferred stock
(par
$100). Underwriter—To be determined by competitive
bidding.
Probable bidders: The First Boston Corp.;
Blyth & Co., Inc.; Kuhn, Loeb & Co.; Union Securities
Corp. and Salomon Bros. & Hutzler (jointly); Harriman
Ripley & Co. Inc. and Stone & Webster Securities Corp.

Business—A

x-r

April 19 it was announced company is considering is¬
suance and sale to stockholders later this year of some
additional common stock on a pro rata basis (with an

probable bidders include Halsey, Stuart & Co. Inc.; The
First Boston Corp.; Kuhn, Loeb & Co., and Lehman
Brothers (jointly); Morgan Stanley & Co. and Drexel &
Co. (jointly).
W':

/■>'/

•

Co."

Southern Union Gas Co.

construction program. Underwriters—For any debenture
bonds — may be determined by competitive bidding;

Co. Inc.; The First Bos¬
Corp.; Blyth & Co. Inc.; Kuhn, Loeb & Co.; Union
Securities Corp. and Salomon Bros. & Hutzler (jointly);
Harriman Ripley & Co. Inc. and Stone & Webster Secu¬
rities Corp. (jointly). Bids—Expected to be received up
to 11 a.m. (EDT) on Oct. 17.

sidiaries.

&

April 16, Lyle McDonald, Chairman/estimated that re¬
quirements for new capital this year will be approxi¬
mately $80,000,000 to $85,000,000.': The types and amounts
of the new securities to be issued and the time of sale
have not been determined. Proceeds—To help finance

ton

sell

Ar Southern Pacific Co.
Aug. 8 it was reported company may issue and sell in
September or October $35,000,000 of mortgage bonds.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb

Public Service Electric & Gas Co.

able bidders: Halsey, Stuart &

Ohio Power Co.

construct

$150,000,000 steam electric generating plant
on the Coosa River in Alabama.
Underwriter—May be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Union Securities. Corp.,
Equitable Securities Corp. and Drexel & Co. (jointly);
Lehman Brothers; Harriman Ripley & Co. Inc. and Gold¬
man, Sachs & Co. (jointly): Blyth & Co., Inc. and Kidder,
Peabody & Co. (jointly); Morgan Stanley & Co;

pected to be received on or about Oct. 16.

July 2 it was reported company plans to issue and sell
$28,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬

■

that this company, 50% owned

and operate a

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The
Corp.; Harriman Ripley & Co. Inc.; Glore,
Forgan & Co.; Kuhn, Loeb & Co., Salomon Bros. &
Hutzler and Union Securities Corp. (jointly). Bids—Ex¬
First

>

t

Co,

Proceeds—Together with other funds, to

ties.

ders:

(10/17)

Power Co.

offering of $4,if John S. Bot-

bank loans and for construction program.

...

May 18, it was announced

(10/16)
issue and sell about
Proceeds — To retire

Service Co. of Indiana,

To be determined

reported company may in the Fall offer

by Alabama Power Co. and 50% by Georgia Power Co.,
subsidiaries of Southern Co., plans to issue debt securi¬

July 30 it was reported company may

an

was

,

Gas Co. of California

$15,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill Lynch, Pierce,

to negotiate the
borrowing of $70,000,000 probably through a public of¬
fering of 25-year debentures sometime after Labor Day
(Sept. 3). Proceeds—For expansion program.
Under¬
writer—Goldman, Sachs & Co., New York.

application with the Federal Power )
Commission for a certificate of necessity, to build a
864-mile submarine gas pipeline off-shore the coast of
Louisiana from the Sabine River to the Gulf Coast of
the State of Mississippi. It is estimated that this gather¬
ing system will cost approximately $150,000,000. Type
of financing has not yet been determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
notes, convertible into preferred stock at maturity, and
common stock).
Underwriter—Salomon Bros. & Hutzler,
New York.
;
Ohio

Jan. 30 it

July 16 the company announced plans

Inc.

has filed

Southern Counties

Procter & Gamble Co.

plans to finance its'
1956 construction program (costing about $40,000,000)
through issuance of debentures and treasury funds in
latter part of year. Underwriter—Probably Blyth & Co.,
19 it 'was' reported company

pany

Publishing Co., Boston, Mass.

tomly, a Boston attorney, does not exercise his option to
purchase the physical assets of the Boston Post by
July 31. Underwriter—Lamont & Co., Inc., Boston, Mass.

'h'fxu

18 David

.

July 16 it was announced that a public
000,000 5% three-year notes is planned

Northern Natural Gas Co.

Nov.

Inc.

stockholders.

Aug. 10 the directors voted to
shares
of
capital
stock to

July

Co. Price—About $6

July 27 it was announced that following 100% stock dis¬
tribution to stockholders of record Aug. 28, 1956, a public

Inc. (9/10)

North American Aviation,

announced that

E. Seibert, President,

company

540,651.75 shares of Pittsburgh Rys.
share.

White, Weld & Co. (jointly).

stock financing.

Southern Electric Generating

per

Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union
Securities Corp. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable Se¬
curities Corp.; Merrill Lynch, Pierce, Fenner & Beane,

Dean Witter & Co. handled

First Boston Corp. and

last common

Fenner & Beane.

and sell

announced company plans to issue

offer and sell

(Del.)

& Metals Corp.

Pittsburgh Rys. Co.

$10,000,000 , of first mortgage bonds during October
of 1956.
Underwriters—To be determined by competi¬
tive bidding.
Probable bidders:
Halsey, Stuart & Co.

6

9, Walter

April

project to cost an esti¬

$217,400,000.

Pan Cuba Oil

it was announced that company now plans to
500,000 shares of common stock (par $25).
Proceeds — For construction program. "Underwriters —
7

Aug.

The

to sell about $32,-

May 4 it was announced that Standard Gas & Electric
Co. will offer to its stockholders rights to subscribe for

Co.

Kidder, Peabody & Co. and

Dominion Securities
Registration — Ex¬

000,000 of common stock to the organizing companies and
that arrangements are expected to be made to borrow

Co. and White,

?

Thursday, August 16, 1956

South Carolina Electric & Gas Co.

Corp.

Peabody &

Salomon Bros. & Hutzler, Union Securities Corp.
Struthers & Co. (jointly); Lehman Brothers;
The First Boston Corp.; Equitable Securities Corp.; Mer¬
and Wood,

•

.. .

R.

will soon file a registration statement with the
SEC preparatory to an equity offering planned to take
place later this year. Business—To explore, drill and
operate oil, gas and mineral properties in the United
States, Cuba and Canada. Office—120 Broadway, New
York, N. Y.

& Co.,

rill Lynch,

C.

^ Pacific Northwest Power Co.
Aug. 13 it was reported company plans

bid: Halsey, Stuart & Co. Inc.;
Weld & Co.; Lehman Brothers and Union Secu¬

White,

20

Co.; Kidder, Peabody & Co.; The
Corp.; and Union Securities Corp.
pected soon.

Pipe

ding, the following may

I

Chronicle

March 9, S. C. McMeekin, President, announced that it >
Williams, President, announced thatis expected that $10,000,000 of new money will be re¬
about 280,000 shares of common stock (par $1) are to be quired in connection with the company's 1956 Construc¬
sold in connection with subscription contracts whichtion program.
The company proposes to obtain a partx
were entered into at the time of the original financing
of its new money requirements from the sale of $5,in April of 1955.
Price—$10 per share. Proceeds—To¬
000,000 of preferred stock and the balance from the
gether with funds from private sale of $35,000,000 addi¬
private sale of $5,000,000 principal amount of bonds.
tional first mortgage bonds, and $10,000,000 of 5.6% x
Underwriter—Kidder, Peabody & Co., New York.
interim notes and borrowings from banks, will be used
Southern California Edison Co.
to construction program. Underwriters—White, Weld &

'

f

National Steel Corp.
March

,

and Financial

(716)

40

*.%

XI

V

J

-»

^

0fjh It- Jtj

'jfcy'»T4> %

-<V'

v'o*

new

£

^

Volume

184

Number 5560

.

.

The Commercial and Financial Chronicle

.

(717)

With Allen Inv. Co.
DENVER,

j-

Colo.

D.

Crawford,

Erickson,

William

J.

of

John

Lee

A.

cents

By ROBERT R. RICH

Munger,

on

A.

Stark

are

with

Company,

Allen

Mile

In¬

High

Center.

Are YOU

a

supervised

investment in securities selected

rapid

growth

of synthetic
past 15 years, to
a
mill
consumption in
1955
of
1,419 million pounds for rayon and
acetate, and 431 million pounds
the

over

technologies. Prospec¬
tus and other information
may be
obtained from your investment

and worsted

by

45%

Wool

-

.

1 /

•

the

been

past six

at

as

spectacular

nylon, has

as

rent

production
pounds a year.

120 Broadway, New York 5, New York

competitive

a

of

dependence

a cur¬

substitution

in

fibres
on

placement.

Ws-

CROWTH of
and_income.

ICOt'fc.—-—
M4

te

Ot

V,.ho»t
pnnc.pal-

of the

per

prospectus

fund

is

available

investment

your

each

on

from

200

13.4%

Assets

and

in

were

climbed to
639

near

held

were

on

six

shares

30,|

1956,

on

June 30

oils,

common
were

steel,

Mutual

Sales

Convention

in

common

Chi¬

Department
shows

common

VV

the

net

fund's
to

used

total

assets

make

se¬

also

84%

represented

and

Progress

The

appointment of Mary Ann
Goldberg to the staff of Delaware

Distributors; Inc' was announced
her§ by W* Linton Nelson, Chair-

man.
In her new . post, she will
direct public relations for the $45
million

Delaware

Fund,

mutual

investment company,

reached

in

38%

shares
a

year

76th

.

the

close

of

Delaware

assets

the
had

invested

first half93.42% of

in

utilities,
and air¬

of

the

Interior.

stocks, and General Elec¬

common

v

consecutive

'V?

quarterly

-

dividend

;

10

cents a

share from in¬

income

payable
September 20, 1956 to
vestment

■;

shareholders of record

August 31, 1956.

■;"'■■■•

ft'

were

;

It

the

j

;

PUTNAM
■

"

II; FUND
r

;

added to the

$13.93

;

$14.23,
an
increase ; from
during
the
first
three

v

was

"v

year,
other

*

$12.43 per share

s,

March 31, 1956. These and
figures indicative of prog¬

eystone

>

Income Fund

Mr. Orr called attention to an
important development which can
have
growing significance over
the years to many of the compa¬
nies

•

is a mutual investment fund of diversified

:

ft

months since the end of the fiscal
were

Francis F. Randolph, Chairman of ;
Asset value

c

it i'-Si

h

■

$7,945,262 on June 30, a gain from
$7,124,420 at the beginning of the ress are contained in the Gas In¬
Fund
quarterly report,
year and from $6,445,216 at mid- dustries
1955,^ it was reported' today by ■just published.
1'CV^
the Board and President.

ef 3$o&/on

nounced that the fund's per share
net asset value at June 30, 1956

Holdings eliminated
Union Oil Company of Cali¬

leries

K-l

in the fund's

is the passage

portfolio. This
by Congress of the

$33 billion highway construction
program. The aim of providing an
•up-to-date
highway
system
to
meet
commercial, military and
r agricultural
needs of the country
will modernize 41,000 miles of an
interstate
system which - carries

A diversified investment

in securities selected for
current INCOME.
.

'

stocks selected for investment

quality. and income possibilities. Mail
this ad for free booklet-prospectus to
•

The

.

Keystone Company

'

A

Common Stock Investment Fund•
Investment

~

LTD.

* objectives
of this Fund
possible long-term capital and
income growth for its shareholders.

T:

an

r

Prospectus

upon

request

Lord, Abbett & Co.

estimated 20%

highway traffic.

!

ONE WALL STREET, NEW YORK b

50 Congress Street, Boston 9, Mass.
- -

'

are

•

The

increased

the nation's

of

*"•
use

of

gasoline,

—

'

Chicago

—

-

Atlanta

4 w

'

prospectus describ¬

K-L ••.4

Name..

Addrese

City

Los Angeles

Continued

me

*

is expected to benefit producers,
refiners and distributors.
In ad¬

dition, producers of asphalt, used
New York

U Please s^nd

ing your Income Fund, Series

* *

diesel fuel and other oil products

on

page

43

of

portfolio."

Personal

assets

r

was

duction.




stocks

mon

stocks, with the balance in preferreds, bonds and cash. A $6,662,687 investment in oil equities,
constituting 15.80% of "total re¬
sources,
represented the largest
single holding by industry. Other
large
industry
investments
in¬

in bonds

Whitehall Fund net assets

of uranium for power produc¬
tion, propulsion and isotope pro¬

Address,

the

portfolio of liquid

new

outstanding

1956

its

stock section

fornia convertible bonds.

use

Name.

a

outstanding since June 30,

were

Mines of the U. S.

mining, concentrating,
and refining of uranium; its proc¬
essing into reactor fuel; and the

~

a

As of June 30,
1956, the market had experienced
a
substantial recovery and com¬

Peak

Fund's

shareholders

bond section.

Union Carbide and Carbon
Corporation in cooperation with

''

of

were

funds

tric debentures

v

by

Established 1894

4%

reserves

clude: steel, 8.46%; natural gas,
during
the 6.53%; chemical, 6.25%; electric
quarter were invested principally utility, 6.23%; machinery,
6.05%;
in a selected list of high-grade
railroad,
4.93%;
food,
4.44%;
bonds and common stocks. Aetna metals and
mining, 4.38%; and
Life
Insurance Company,
Com¬ electronics and electrical equip¬
monwealth Edison Company, New
ment, 4.04%.
Jersey Zinc Company and Rayonier, Incorporated were added to^ t
Gas
Industries
Fund
has
an¬
Additional

Development

the Bureau of

"

mately

.representing

$24,300., pei

levels on June 30, 1956,.
3,793,240 shares held by moreK
than 13,000 individuals, fiduciaries-and
organizations on I that date.
This represents gains of 54% in

in public

automotive

more

with

Largest industry hold¬

ings in the

in oil

cago, Sept. 20-22.
The 28-minute
color motion picture was produced

-

being

individual stocks

record

782,398.22

ferred stocks and 28.89%

instrumentation,, metals

Atomic

CALVIN BULLOCK,

an(j many

than twice that amount, approxi*

trusts,:.;,.the average

.

nu¬

over-priced
earnings

near-term

craft and paper.

Fund

;

than $35,-

of the largest

The number of shareholders and

\

stocks represented 61.22% of the
Fund's assets, with 9.89% in pre¬

ture, "The Petrified River — the
Story of Uranium," at the Mutual

common

more

one

NekLserva^u^DL^share in°the

of

June

upward trend and

relation to

latter part of May 1956.
V
"After industrial stock averages
had declined approximately 10%

l\6te™\emi-LyneuaYTe%rt%hon-S

year ago.

On

its

inTanuary~to'ttie

;Net asset value per share in 1
^
same r~!j1
period rose to $11.13 from
.
di¬

or-*

$30,737,787, equal to
share

per

portfolio

dividend prospects, the per¬
centage of common stocks in the
portfolio was reduced from 92.9%

high of $42,230,June 30, last, from $37,-

on

share on 641,713 shares out¬ ago.
standing for the same period a f At

Fund, Inc. will have a special
showing of the new motion pic¬

:

is

at

Delaware

man-

stocks, in-that

its

lective purchases.

per

To Show Film

Berkeley Street

of

shares outstanding. This compares
with $24,100,367, equal to $37.56

Atomic Fund

Boston, Mass.

use

likely to result

issues

net assets of

mid-year, the largest in-

gas,

companies

for

and

A" and "B "

Delaware Fund

char¬

growth industries.

and cash.

vestments of the Fund
and

The 42

$39.29

dealer•

The Parker Corporation

.

of

—

trust.

quarter ended June 30, 1956, total

Fund

share

This

participation

Massachusetts Life Fund, a bal¬
anced mutual fund, reports for the

time.

At the

to

leading

totalling $15,338,635. Net asset value per share
was $13.06, compared with $11.52
on Dec.
31, 1955, an increase in
value

trust funds

»lue of

versified among more than a dozen

Fund, Inc., in number of
shareholders, total net assets and
net asset value per share. On that
date, 6,464 shareholders owned net

months'

A

der.

July 1 by Diversified Growth

assets

common

term,
the textile industry.''

and electronics

established

were

tire

similar, though not

benefits

records

in

thus producing a single fund with

considerably

investment

seems

-.sf.'M.

Stock

Vb&le
risk

re¬

In Total Assets
New

of

made fibres

Sets New Records

possible

the

acteristics

D.I.F. Growth

on

C

or

tinued

Trust Merge

of tire cord, hosiery, etc.
development
of
synthetic

enhanced

on

Investors

luna

stock

common

"

makers

The

$505,053

and sold $53,160.
In its half year report, the fund
holdings stated, "As the stock market conmerous stocks seemed

sizable earnings
have also accrued to producers of
apparel fabrics, as well as the

future increase in the

rather than

mutual

*

"

"but

declares,

supplementing
through blending,

natural

lncoi

bought

mid-

at

j

is

Fund

stocks

common

individual

800,000.

variety of
synthetics already created, "Per¬
spective" believes future emphasis

cicome

in

imports."

on

rubber and fibres has

likely to be

men-

survey.

The "Chronicle" erred in report¬

Randolph told share hold-

"Profit-wise, the chemical in¬
J-1
y
dustry has thus far been the prin¬ City. The combined fund has.1,476
cipal beneficiary," "Perspective" participating

million

78

ratio

reverse

"Chronicle"

in

s,

during the second quarter.

tant repercussions.

Because of the great

capital

years.

growth is certain to have impor¬

but with growth prospects almost

longAerm

,•

.

of

toned

second

by 10-to-l

that stresses and strains which

50%

effects in the field of invest¬

Glass fibre, although up to
used in insulation

National Securities &
Established 1930

instead

in¬

Fund's

in

year, and the Chairman reported
there were no important shifts in

ment management and that future

■

,

Research Corporation

lor

Mr.
ers

spindles has declined

over

has

of its

largely

now

A

value

Growth

quarter exceeded sales

gain

"Perspective"
notes
that
the
Manufacturers
Trust Company
rapid
postwar
development V of
has announced completion of a
synthetic fibres has* had signifi¬
merger of
its two discretionary
cant

year.

or:

Til," S

asset

:

year.

period, and the number of woolen

"Perspective" finds the produc¬
tion of nylon, a fibre fast
gaining
in use for tire
cords, currently
running at 290 million pounds a

ments and

poftf

investments,

realized

71

disadvantage because of its ex¬
treme price volatility and because

;

dustries."

capital with special consideration
given to corporations actively en¬
gaged in newer scientific develop¬

4

from

Price

security'purchases

in§ *n its page one quarterly surdeveloped in the national econ- vey of investment company port"Perspective" states. The growing omy in the
past quarter were not folio operations, published Aug.
competition from synthetics has
alarming but represent "the type 9 under the headline, "Funds'
stimulated cotton manufacturers of
risk that is taken into account Policy
Dominated
by
Cautious
to develop improved
finishing and in your fund's
conservative, bal- Buying," that stock sales by T.
styling. The washability of cotton anced investment
policy."
Rowe Price Growth Stock Fund,
'
has also been a real plus factor.
Assets continued to be divided Incduring the second quarter
;7 "Wool
has been losing ground
roughly 50% in cash, fixed-income were ten-fold the purchases. Dursteadily throughout the postwar bonds and
preferred stocks and inS the second quarter the fund

ber, floor coverings and other in¬

long-term growth of

Established 1925

share

a

of

states, "but important contribu¬
tions have alsq been made in the
fields of textiles, petroleum, rub*

stock mutual invest¬

providing

distribution

\'
"Primary credit belongs to the
chemical industry," "Perspective"

National Growth Stocks Series is

dealer

The

fibres

vin Bullock.

Series?

for possible

holds approximately two-thirds of
the total
textile fibre
market,"

research
in
a
highly
competitive, free
economy,
ac¬
cording to the latest "Perspec¬
tive," published by the Investment
Management Department of Cal¬

National Growth Stocks

ment fund

Synthetic Fibres

industrial

Investing In

common

Bullock Studies

"King Cotton is by no means
dead, as this natural fibre still

for
the
other
synthetics, is a
shining example of the value of

Interested In

1955

TV Rowe

creased 4.3% from June 30 of last

D.

vestment

a

cember

Edward

O'Neill, Ronald N.
Retchless, Gwen R. Sampson, E.
R. Carl Straub, Wilson E. Tarr,
Alvin Vaira, Wiley W. White, and

CORRECTION

fund, comparing with $12.63
March 31 and $12.18 at the first
the year. Adding back the'De-'

on

Blackwell, Charles Bosworth, Jr.,
Malcofrn: D.

mu¬

tual

%

>

Dozier

—

June 30 for the balanced

on

{Special to The Financial Chronicle)

.

41

-

—•

.

State...

Financial Chronicle

The Commercial and
42

The following

Indications of Current

latest week
week

Business Activity
** "
castings (net tons)

Equivalent to—
Bteel Ingots and

.Aug. 19

,

Ago

v

of quotations,

cases

,

;

Total

2,176,000

#

gas

Aug.

gallons each)

42

J

7,065,450
117,964,000
27,045,000
1,854.000

Aug.
—Aug.
—Aug.
Aug.
Residual fuel oil output (bbls.)
—
Aug.
Stocks at refineries,-bulk terminals, in transit, in pipe lines—
Finished and unfinished-gasoline (bbls.) at——-i
Aug.
Kerosene (bbls.) at
Aug.
Distillate fuel oil (bbls.) at
AuKResidual fuel oil (bbls.) atAug.
Crude

stills—daily average (bbls.)—

to

runs

..

output (bbls.)—
Kerosene
output (bbls.):—
Distillate fuel oil output (bbls.)—
Gasoline

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)

7,974,000

7,487,000

27,736,000

25,953,000

2,028,000

2,094,000

12,434,000

11,063.000

7,677,000

7,146,000

2,200,000
12,632,000'

-•

V 12,841,000

7.629,000

7,551,000

AMERICAN
of

PETROLEUM

Ions

-

Domestic

156,476,060

177,561,000

177,052,000

178,549,000

29,607,000

28,883,000

26,760,000

32,475,000

119,289,000
44,598,000

113,600,000

98,289,000

119,479,000

43,168,000

39,779,000

i

45,273,000

'Benzol

gasoline

649,806

478,297

581,238

527,925

641,163

$322,829,000
189,264,000
133,565,000

$309,454,000

$657,377,000

$334,458,000

190,237,000

437,272,000

188,211.000

119,217,000

220,105,000

146,247,000

118,302,000

110,141,000
9,076,000

143,067,000

128,596,000

77,038,000

Increase

760,387

503,319

consumption

—

Total XJ.

•

all stocks

Slab

lug.

construction

3.

construction
Public construction
State and municipal

AUSAug.
Aug.

Federal

15,263,000

Bituminous coal

Pennsylvania

9,030,000

1,290,000

581,000

52,000

97

90

Shipments

SYSTEM—1947-49 AVERAGE

—

Aug.

100

June:

DEPARTMENT
SERVE

seasonal

282

251

169

Aug,

5.619c

5.179c

5.179C

5.174c

Aug.

$62.95

$61.36

$60.61

$59.09

Aug.

$55.50

$52.67

$44.83

$44.00

39.650c

39.525c

44.500c

35.700c

Gas-fired

38.275c

37.300c

46.925c

39.625c

Gas

.Aug:;

99.000c

93.250c

94.250c

96.875c

Gas

16.000c

16.000c

16.000c

15.000c

operated
Domestic- gas

.Aug,'

15.800c

15.800c

15.800c

14.800c

Gas

.Aug.

13.500c

13.500c

13.500c

93.23

*92.69

Aug. 14

102.30

102.80

Aug. 14
Aug. 14

105.86
104.66

101.97

! 102.46

Aug. 14

Lead
Zinc

97.16

97.78

101.31

FABRICATED

MOODY'S BOND

:

at-

PRICES DAILY AVERAGES fe-

corporate

Average

Public

:

U. S. Government

111.07

106.21

109.60

103.97

104.48

105.86

!

3.12

3.08

3.61

3.58

'.

3.49

.Aug.14

3.40

3.37

3.22

3.60

3.70

EXCHANGE
r;

Odd-lot

—

^t end of>period.

;

;

(customers'rpurchases)—t"

'y-ii 400.8,

273,007

367,978
f-

:"H.

109.01

108.93

1,327,688

1,326;164

-

-

of

V.V.
,>

L
>'
>

7,100

164,000

161,900

204,000

247,300

233.900

*227,100

81.5

82.3

16,000

"

f
.

May:.

MINES)—

OF

'

(in fine ounces):—
(in

;

...

144,345

fine' ounces

short

(in

tons);

155,026

3,430,747
93,824

.'V"

98,128.
28,818
■

*137,Q38
♦3,251,337

/

3,113,596

tons)

PRICES

(E.

M.

&

25; 610

'*^9,625

•

23,932

'

^^*#4,957

46,087

44,273

45.056c

I 35.700c

J.

■..

...

40.807c,

■

36.002c

40.260c

/

36.504C ^ f

^

^

Common,

York

/>
Common, East St. Louis (per pound
/' ttPiompt,; London (per long ton KlZ.
'
.ttThree months, London (per long tOh)___

i-ie-.OOOc"

16.000c:

£112.040

New"

(per

15:000c

■

*

-

t

15.800c
y •15.800c
£113,65• : £113.226'

14-.800C

:

t

£105,940

i £105.601

7>t £111.071
"

Zinc* (per:.pound-)—East

.

13.500c

Louis__

St.

-

13.500c-

—

12.500c

"

ttZInc^ London,"prompt"(pei; lopg ton)
:>ttZind,

5,065

•

7-

£93.483

£11.226

>•1 £94.006

1,181,336

895,964
f' if..

>.

J

J

1,135,708

1,056,477

$53,330,636

$58,411,850 -■

." 2,837

,

/Gold, (per

1

'

>•••.>'

6,740
1,020,004
$52,325,371

Platinum,

,

refined

(per

296,950 <•

;V255,380
:

' 255,380 ^

327,240

276,650

209,510

' 509,960

>•

V.

!

455,040

-

Aluminum,plus Ingot
Magpesium ingot

•

.

470,370

.July 21

.

>*Nickel

pound)___

tper

••

..

29.000c

.

!

.

$82,540?

$1.70000!-

33.750c

• -

...

$1.70000

$1.70000/

$1.70000

$1.70000

28.500c

i" '■"•v33.750c- '

64.500c

*

.BismUth'^per pound)

.

>.
f- $2.60000^";. $2 60000* '
:
25.900c '• "*•.;!
23.200c

25.900c
-

(per pound

;'28.500c !

-- r

^

*

—L'v

33.500c
$105,000

-$1.70000

$2.60000

.

!

33.000c

.

f

$35,000 ?
$264:920 :
"31.970c

36.470c *

* ;•
„

$1.70000

Bob-alt; 97

" s

'

33.500c,
$105,000
$1.70000

V"', 276,65p

209,519.

*:

$258,115

-

,

33.000c

JQunce.)__l:4__!:___;

95.806c

>$35,000
'■*

36.470c

.

"

*96.805c

93.635c! "

-l

$255,000

'

$2.78494

'

$35,000

?

73.869d

.

94,635c

$1,70000

296,950

,

.•

$2.80217

r

■

95.265c

"

'

to30e

^

78.625dv.

$2.79335
96.265c

U. S. price)!—.

ounce,

90.464c

78.500d

.

t

'"Aritiipon.y (per pound), boxed; /Laredo—~J

*

809,297,'
$40,563,965

•c

Quicksilver fper flask of - 76 .pounds)—

90.137c

^?^91.21#

£92.387

'

,t

' 11 Antimony, New York boxed-,—'__f
.
.' Antimony (per pound>,"; bulk.=*Laredo*.:t.

:

rj

1,026,744

812,134^

*

.

Exchange—

Sterling. Exchange" .(check
Tin, . New York Straits.^_il::;-__-—i.—„
§ §Tlh—Newv York,' 99%----1:—

.

:

Sterling

£92.341^

(per long' ton)

Silver New Yorkv (per ounce)—
Silver, Londqn (pence per ouncft:)—1-:

A

,

$47,241,503'! $62,9.63,160

f

1,062,866
6,389

1,140,773 t

London, -three months

'

_July 21
.July 21
-July 21

£—

6,200

:

r

States:

Silver, and

$69,678,346 1
-

.July21

purchases-by dealers-

74.100

11,300

7,400

(units)

pound)4._'_——'

*.•106.8*

$74,679,772

f*

.July 21

Other* sales-

of- shares.-:

shipments

tons

i -

.July 21

-r-r*

65,100

15,500

ASSOCI¬

(units)___

■

691,068

Round-lot sales .by dealers—
Short sales

,73,300

78.4

burner

short

98

56

108.99

4-

-

Number' of shares—Total sales—

318,150

282,325

'

278,376

178,617
512,197

•

July 21

■T-

35°.,271
306,223

'

.July 21

Dollar value*—.—

337,230

284,719

■

boiler

short

v

—July

CONSTRUC-'

June:?

Lead*—

-

f

(AMERI-i

STEEL

shipments

'(in

3.24

94

'

oi

Zinc -(in

v

464,529

-

-

—

Customeral. other sales

Number

*•

524,084

Aug. 10

! customers* short sales—

Round-lot

3.36

ON

——

-

98

99-

MANUFACTURERS

Copper

ACCOUNT OFODD-

uouar value
>
vDollar vaiue- ———
U.i
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers'.,total sale3a._'__

-

! 124

118

'

QUOTATIONS)—
Average for month of July:
Copper (per pound)—.
Domestic refinery '
-_T1.
1
Export, refinery 1 __1__

125

N. Y. STOCK
SECURITIES EXCHANGE COMMISSION:

by dealers
of shares

Gold

METAL

3.19

3.40

268,101

4

Aug.

—

PRICE INDEX—

SPECIALISTS

♦124

;

STEEL

'.

3.56

409,8

280,659

4

-lAug.

AND

126

Average=100—

production of recoverable metals in the

*; Silver

3.27

V

3.78
3.48

242,240

OF

-

2.87

3.58

3.51. j...,.:

341,759

—Aug.

sales

Number

!

3.56

422.9

4

—Aug.

activity

DEALERS

LOT

2,143,000

RE¬

shipments (units):.
range
shipments (units)
heater shipments (units)—

•United

.

.Aug. 14

BTOCK TRANSACTIONS FOROBD-I.OT

v

t,

(tons)#—

Unfilled orders (tons)

Month

-

3.11

,

3.51

.

3.89
3.67

! *

3.53

.Aug. 14>

OIL, PAINT AND DRUG REPORTER
1949 AVERAGE = 100
—

V

3.60

-Aug. 14

Group.

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)
J.
i
Percentage of

36 004 000

*1,925,000

>

3.28

3.38

3.46

3.47
3.63

3.93

.AUg. 14

■>__

Group

Production

44,770,000

•

.

June:

furnace

water

Mine

*

*

.Aug.14

MOODY'S COMMODITY INDEX-

-•.

39,605,000
2,442,000

>

,

iuly (1947-49=100)

10870.

-

Industrials

64,056

-r,.

METAL OUTPUT TBUREAU

108.52

>

2.94

•Aug.14
Aug. 14

.Aug. 14
Utilities

45,921

(tonnage)—estimated
(tonnage)—estimated

conversion

Lead

DAILY AVERAGES:

.Aug. 14

Public

53,559

INTERSTATE COMMERCE COJMMISSION-* ) S
> Index of Railway Employment at middle of

106.56

103.13

Bonds.

Group-

of

APPLIANCE

103.13

103.97

Baa

Railroad

51,200

■

closed

Shipments

108.16

99.52

102.80

,

103.64

^

.

108.16

104.83

102.46

Aaa
Aa

106.39

100.81

corporate-.—lis.

Average

95.00

Aug. 14

Group

MOODY'S BOND YIELD
v

INSTITUTE

Contracts

107.98

-Aug. 14

—

Utilities

Industrials

94.34
104.31

-

-^r-Aug. 14

Group *=.»>i
Group-

Railroad

Aug. 14

—

Bonds—:

8. Government

81,713

*69,704

adjustment

ATION—Month

'

U.

84,400

*63,327

103,253 •

variations

STRUCTURAL

TION)—Month

QUOTATIONS):

at————

at

Louia)

(St.

(East St. Louis)

*78,454

49,531

»

12.500c

Aug. 14

Lead

''

July:

.Aug,

York)
(New York) at

83,080
\

(tons)

*

SYSTEM—1947-4!)
of

Without

CAN

(New

16,708,000

■

:

;

SALES—FEDERAL

for seasonal

229

at

refinery

tin

r

(tons)—

,

Adjusted

GAS

Export

11,545,000

:

2,000 pounds)

period

STORE

—Aug.

DUN

Electrolytic copper— -■
Domestic refinery at
Straits

12,22^,000
246 343,007

19,776,000

,

and
lignite (net tons)
anthracite (net tons)

10,729,000

COMPOSITE PRICES:
(per lb.)————w—
Pig iron (per gross ton)
Scrap steel (per gross ton)
(E. A M. J.

14,695,000
265.) 55,000

14,825,000

coal

10,878,000

steel

METAL PRICES

of

of

,

Bituminous

Pennsylvania

.Aug.

INC

BRADSTREET,

55,000
"'23,017.000

(BUREAU OF MINES)—Month

11,190,000

IRON AGE

Finished

*•24,462,000

266,706,000

:

Unfilled orders at end of period

.Aug„

INDUSTRIAL)

•29,074,000

(tons of

grades

:

(tons
end

at

11,530,000

Aug. 11

(COMMERCIAL AND

55,000

!

■..

output all

Stocks

Month

FAILURES

20,779,000

53,000

export1
J
i

,

97

INDEX—FEDERAL RESERVE

EDISON ELECTRIC INSTITUTE:
Electric output (in 000 kwh,)

2C6 933.000

/ 23,102.000

INC.—Month of'

*

9,099,000
482,000

104

Aug.

DEPARTMENT STORE SALES

227.817.000

23,554,000

<

and

.v

pounds)

COAL OUTPUT

9,240,000
579,000

Aug.

and lignite (tons)
anthracite (tons)—

237,543,000

218,976,0001" 214,386,000

4

1

(barrels

smelter

zinc

2,000

of

OF MINES):

(U. S. BUREAU

COAL OUTPUT

242,583,000

,

.u.

AMERICAN ZINC INSTITUTE,

ENGINEERING

Private

-

17,651,000

—Aug.
of cars)—Aug.

NEWS-RECORD:

domestic

(barrels)'

■■

228,514

{

(barrels)

output

output

Indicated
•

341,441

f

(barrels)

output

(barrels) •
Crude oil imports (barrels).:—
Refined products imports (barrels)

.

660,287.

oil

36.613

277,374

'

(barrels of 42 gal-

—

crude

29,078

INSTITUTE—Month

•

each

July:.

CONSTRUCTION

ENGINEERING

CIVIL

4,575,594

_

May:

Total domestic production

Natural

*

•

freight received from connections (no.

Revenue

7,930,000
27,474,000

'

>.

4,840,721

6,307,662

24.902

:

(M therms)

sales

6,678,181

5,440,902 V,

1

•

6,639,500

7,085,850

7,085,800

Ago

5.743,178

therms)
sales (M therms)
gas sales (M therms):

(M
gas

Mixed gas

average (bbls. of *

Year

Month

;

'•?:

■

Manufactured

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—dally

Previous

Month

ASSOCIATION—For month of

AMERICAN GAS

90.2

of that date:

are as

Latest-

Natural

377,000

*1,415,000

§2,106,000

in

or,

-

Ago

15.3

*57.5

that date,

on

Year

May:

.Aug. 19

—

month ended

Week

i §85.5

production and other figures for the

cover

month available.' Dates, shown in first column are either for the

Month

Week «;

IRON

or

statistical tabulations

or

Previous

Latest

AND STEEt INSTITUTE: Indicated steel operations (percent ol capacity)-.—-

AMERICAN

!

Thursday, August 16, 1956

%;

.

(718)

'-. i

$2.25

64.500C
$2.25-

-

T*
$2.25* -

64.500c

■

„

'*'

-

2

J-...- -

TOTAL ROUND-LOT STOCK SALES ON THE N. Y.

STOCK
PORTLAND

"EXCHANGE AND ROUND-LOT STOCK' TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):
Total

Other

!

*

round-lot sales—
sales

Total sales

491.690

•-

480,570

307,080

11,744,040

8,201,790

12,258,400

8,508,870

11,955,320

ROUND-LOT

July 21

307,060

purchases

.

271,570

1,197.420

1,327,010

839,360

1,323,940

1,467,630

1,634,070

1,022,770

1,595,510

v

-

."

—"

railway oper.

income before charges

sales

WHOLESALE PRICES, NEW SERIES
(1947-49

=

—

U. S. DEPT.

income

charges

77,000,000

342,400

374,580

221,450

391,480

234,950

321,070

July 21
July 21
.July 21

616,395

580,600

435,800

496,165

105,070

115,220

71,530

90,230

631,048

477,374

582,525

736,118

548,904

672,755

682,369
"■

797,589

-■»

U. S. GOVT.

2,351,915

2,449,230

1,781,350

Total
at

of

face

July 31

392,980

439,180

268,440

2,170,868

2,383,959

1,538.184

2,199,935

2,563,848

2,823,139

1,806,624

Total

OF

V

of Jan.

Monthly

1,

1956, as

Investment

Plan.




1,032,000

(Corrected

barrels

figure.

A

$278,000,000

—

not

$281,000,000

$281,000,000

272,645,336

'272,750,813

-277,584,032

!

,

obligations

ownec!

by

*

the

•

!

!

!
73,888

73,716

Total

v

gross

.teed

public

debt

obligations

114.2

114.1

7

89.4

*90.5

90.4

87.3

7

102.6

102.9

102.6

100.9

83.7

81.7

81.5

121.8

121.5

121.4

116.8

Aug.

7

total

Grand

110.2

Balance
under

face

and

annual capacity of 128,363,000 tons
not reported since introduction of

VF.o.b.

Fort

quotation
from

East

at
St.

debt

w!.

debt limitation

of

or

morning
Louis

more

U. S.

'•

!

•

41,514

•

■

* :

463,485
$272,361,216

,

•

issuable

'

§Average of

duty

of

included.
London

8,638,784

(Based

quotation

on

on

;

.

;

$277,625,547

"

462,021

»

the producers' quotation.

0.5c.

.

$272,824,702
•

but less than carload lot boxed.

session

exceeds

.

•

5,742,968
on

platers' quotations.

Colburne,

-

$272,257,031

obligations,

+Based

-

obli---

authority

'Revised figure.

producers'

guaran-

$272,719,052

public

outstanding

amount

above

and

—

outstanding

gations not subject to
114.2

7

of foreign cr'Jde runs.
§Based on new
against Jan. 1, 1955 basis of 125,828,319 tons.
(Number of orders

Ulncludes

88,000,000

*

—_

—

public debt

gross

11 Domestic five tons

as

figure.

<000's omitted): ) - •
may be outstanding

time

Treasury

2,589,335

Aug.
Aug.

commodities other than farm and foods

f'l06,780,581

85,000,000^*

389,400

82.4

♦Revised

$101,672,019

102,472>454

amount- that

any

Outstanding-r-

2,370,545

Aug.

products

$100,511,767
-

-

/VC!

!

STATUTORY DEBT LIMITATION

Guaranteed

100):

Processed foods

(estimated)

293,470

360,100

Commodity Group—
commodities

75.82

94,980,853

Net

* 646,779.081
*
73.6*"

701-.614.581

$96,728,965

Net

27,600

$878,350,933 '

$925,355,033,

76.23

327,900

Deduct~-other

Ail

expenses_r_:_—jlJ—

$900,465,909
r
686,410,493

13,500

July 21
July 21
July 21

Total sales

Farm

;

after

103

,

233,870

—July 21

—

Short 6ales

All

^

revenues^

16,900

July 21

sales

—

•

87

v* v..-.

RRs.)—Month
J

'26,106

(AS¬

343,490

Total round-lot transactions for account of members-

LABOR

ROADS

';

:

,

operating
Total
operating
Operating ratio

—As

:

Total sales

Other

7

AMERICAN

OF

•

.

I

17,700

July 21

Short sales

purchases

June:

Total

CLASS

24818,000
24,993,000

22,222,000
29,854,0^1

270,670

July 21

sales

Other transactions initiated off the floor—
Total purchases

Total

of

,

•

27,087,000

28,678,000
100

1

cent)!'

(per

EARNINGS

23^386,000

26,134,000

u

July 21

______

Total sales

Other

183,410

*

'

v

" .*

*

•

MDIES)—

; July 21

^

Short sales

Other

1,546,480

1,111,680

1,525,140

270,210

Taxes

Other transactions initiated on the floor—
Total

Capacity used

*

SOCIATION

1,464,850

*;•->

•

„

OF

Shipments-from mills
barrels)_!:*-—'
Stocks (at end .of month—barrels).—-__L

•

RAILROAD

.

Total sales

Month of April:

(BUREAU

/ Production (barrels),

11,463,630

12,276,950

TRANSACTIONS FOR ACCOUNT OF MEM
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists In ftockri in which registered*—
July 21
Total, purchases
July 21
Short sales
July 21
Other sales

514,360

11,796,380

.July 21
.July 21
.July 21

Short sales

CEMENT

482,814

*

$277,142,732
' 1
*
1

3,857,267

the average of the

special shares

to plater.
§§Price for tin contained.

((Average of daily mean and bid and ask
Exchange,
t (Delivered where freight

Metal

Volume

184

Number 5560

.

.

.

The Commercial and Financial
Chronicle

(719)
noted

that

banks

two

of

continue*

2%% charge
other

ten.-

to

central

maintain

another

out

12

authorities

by bringing the two
v.] /

Slated

For

Several issuers

fower^Co., obviously
recognize

due to

come

the

Co.'s

willing

to
conditions

the

Market

are

market next week for
sizable chunks of capital.
Largest
is Pacific Telephone &

Management of Consumers

$78

million

bentures;

changed
in the capital
market, went ahead

Accumulation Plan in
31

Telegraph
32-year de¬

of

the

March

report.

Although the past quarter
reflection of

gesture, it is

into line.

into

a

against 3% for the

as

.Monetary

could make

pointed

the

some

and

that

strains

velop

in

tional

of

the

saw

stresses

ordinarily

de¬

economy

period

a

when

the

na¬

is operating at a
very high level, the chairman told
shareholders that this develop¬
ment had not yet reached a
point
at which modification of the cor¬

poration's
stock

emphasis

investments

able.

This A. T. & T. affiliate

'■

National

advis¬

V /

Investors

has

growth

on

seemed

the
.

highest 100.21 for
which

rate

pon

above

the

ing the

lowest

same

4%

a

$1.60

was

tender

track

'

.

in

the investment
market,
experiencing goods inquiry.
As Books opened it appeared that
was

of

upward

60%

of the

scribe
each

specify¬

interest rate. J

Early indications were that this
issue, having pretty much a clear

"

week. Holders

cou-

bond

a

total

had

'

for
21

by

this business.

on

Minneapolis - Honeywell
Regulator Co., by the negotiated
route, is slated to. market through
bankers
$25 million of 20-year
sinking ffund debentures to repay
bank

capital.;

has

Two

would

work

loans

readily.

;.

Two

indication

rxa

of

what

transpired

in

in the last

eighteen months

this

since

arid

the

market

money

or

so

previously
capital, this financing: was
of more than passing interest
con?
sidering several late postpone¬
company

raised

Out

expand working
<
'
, „'
of

'

Three
of

the

:

major

finance companies which had new
issues slated' for market have de¬
cided

to

due to

postpone

the

Latest

such

offerings

Commercial

Credit

At

the

start

Consumers
issue

*

of

of

February, 1955,

Power

$30

Co.

million

bonds due in 1990.

brought
coupon

of

to

102.325

of around

at

for

an

an

of

with

an

35-year

This issue

market

rate

floated

was

3*4%

a

offering price
indicated yield

set

indefinitely

that
for

project

back

its

$50
for

It

sought the money
A week ago C.I.T.

reason.

20-years.

Financial

Corp. decided to forego
planned; offering of $75 mil¬

its

lion

of

15-year debentures.

A smaller unit in the

field, Gen-

; eral Acceptance Corp., which set
back its $20 million o£s
15-year

yield of better than 3.94% de¬
spite the fact that the maturity
a

is five years shorter.

The 75 basis

points difference in yield pretty
measures
the change in the
money picture in the interval.

Well

debentures

earlier

-

this

The

new

cial

and

paper

bankers'

turning renewed
weekly meetings
Reserve Banks.
It

bills, j is

interest

the

of

Co.,

the list, has $5(
million of 20-year debentures or.
tap, also tentatively for next week
fourth

a

the

to

v;

Continued

on

from page 41

banking fraternity, will be cast¬
ing a weather-eye in that direc¬
tion

in

there

the

weeks

is ether

ahead

unless

evidence of change

in Reserve thinking, through open
market operations for example.

While no further

rediscount

rate

in

road

construction, and carbon
black, used in tire manufacture,
may also be expected to benefit.

markup in the

structure

*

gener¬

ally is expected to develop, it is

National

Security Holders of

to

security prices in gen¬
pointed out in the
mid-year report by Francis- F.
Randolph, chairman of the board
it

and

President.

record

share

was

13.1%

from

set

on

quarter-end
of

$10.25

June

30,

a

up

$9.06 at the first of

the year.

;

assets

,

were

an

dends and distributions into addi¬

1956

creased
gen¬

sharply

nouncement

erally available to its security ho dets
Gas Cor¬
poration and of United Gas Corpora¬

following
an¬
of the new, simplified

shares

of

tering Jhe
increase
First
tors

Fund

the

in

Fund
for
July
to $8,056,000 compared
$5,856,000 in July last year,
Wilkins, Vice-President, re¬

-

-

•

over

W

Investors

of

shares

Corp.

of

distribu¬

most

mutual

funds,

and sponsors of its own
periodic payment plans for the
accumulation of shares of Well¬
ington Fund and Miutual Invest¬

the National

$4,520,945, the largest vol¬

ment

$4,003,728

$3,694,627 or more than 38% from
the
$9,690,069 reported for the
period July 1 to 29, in 1955. First

E. Wain
President of National Securities &

Research
and

Corporation,
of

managers

the

sponsors

funds,

nounced.

Investors Corp. also
reports that
its total mutual fund sales for
the

an¬

;

"Purchases of these shares dur¬
ing the first seven months of 1956
totaled

$42,391,547, the best

recorded

24%

first

said.

was

assets of

the

Na¬

Wellington

for

..

new

of

in¬

over

the

the

consolidated

Subsidiaries

and

A. J.

ported.

Sales of Wellington Fund

for

seven

the

months

to July

31,
$62,075,000 compared with $38,398,000

1956, also set

in the first

Net

new records at

months of

seven

1955.

of Wellington Fund
31, last, were at a new
high of $585,286,224, an
increase of $120,529,203 over net

J. X.
V

Logan

Calif.

—

Margaret

have joined the staff of J.
Logan
& Co., 721 East Union Street.

1956, were
July
in

DIVIDEND

NOTICES

A

dividend of $1.75 per share
upon the out¬
Preferred Stock of this
Company- ha'
been declared payable October
l; 1956, to holders

NOTICES

BRITISH-AMERICAN
TOBACCO

?£ record at the ciose
1956.

No

dividend
Common Stock.
,

of business September 12,

action

taken

was

FINANCE

L.

T.

NEWMAN,

Secretary.

COMMON

close

of

business

of Directors

14,1956 in London .it

was

held

on

September

14,

a
share on Common Stock,
payable October 10, 1956 to stock¬
holders of record September 20,

1956.

1956.

KENNEDY
President & Secretary

September 28, 1956 Interim Dividend

Johns-Manville

Also

decided

to

the same day
half-yearly dividend of 2l/2% (less tax)
on issued
5% Preference Stock.
*
Coupon No. 227 must be used for divi¬
dend on the Ordinary Stock and Coupon
No.
the

106

must

pay

be

on

used

for

5% Preference Stock.

received in London

on

or

dividend

Also

tors declared

ioHKB-MAHvitt,

transfers

of record

A. E. WEIDMAN

July 26, 1956

a q uar-

share

per

pay

received

in

Treasurer

able

1956.

holders

to

record

before August

pay¬

September

on

AH transfers

the

on

Common Stock

p*ou-uc-Ti

August

7,,
of

27,

1956.
IHK CORPORATION

ROGER
to

September 20, 1956.

terly dividend of 50c

October 31,
half-yearly dividend of 3% (less
on the
6% Preference Stock. All

1956

ers

transferees.

to

decided

tax)

DEND

The Board of Dfrec-

27, 1956 will be in time for payment of
dividends

Stock and $1.25 on the $5.00 Sink¬
ing Fund Preferred Stock, both pay¬
able October 10, 1956 to stockhold¬

Corporation
DIV

HACKNEY, Treasurer

on

London

on

or

TENNESSEE
CORPORATION

be¬

fore October 8, 1956 will be in time for

July 10,1956

payment of dividends to transferees.
Stockholders
who may be entitled by
virtue of Article XIII (1) of the Double
Taxation
States
tax

Treaty

and

credit

United

the

under

States

by

between
United

Section

application

the
991

Revenue

can

ate to

A dividend of
cents

United

Kingdom,

Internal

DIVIDEND

The directors also declared
regu¬
lar quarterly dividends of $1,182* on
the $4.75
Sinking Fund Preferred

pay

>

:

PREFERRED STOCK

August

decided to

regular quarterly dividend of 25

a

cents

JOHN A.

Vice

DIVIDEND

The Board of Directors of Sea¬
board Finance Company declared

25 BROAD
STREET, NEW YORK 4, N. Y.
The
Executive
Committee of the
Board
of
Directors of this company on
August 15, 1956,
declared the regular quarterly dividend of
$1,375
per share on the
outstanding 5\'?.% Series Cu¬
mulative Preferred Stock of the
company payablenOctober 1, 1956.to stockholders of record
the

STOCK

86th Consecutive
Quarterly Payment

CITY INVESTING COMPANY

at

COMPANY

the

on-'

.

COMPANY, LIMITED

meeting

a

SEffBOftRD

standing

assets

DIVIDEND

At

Company

(Incorporated)

Racine, Wis., August 13, 1956

of

to

STAUFFER CHEMICAL

fifty (50c)

was

declared

COMPANY

to

stockholders of record

DIVIDEND

all the above mentioned dividends.

NOTICE

the close of business

The Board of Directors has declared
a

dividend of 40c

common

per

stock payable

close of

business

August 14,

Septem'

ber 12,1956.

share on the
September 1,

1956 to stockholders of record at the

1956.

61

Christian de Dampierre

BRITISH-AMERICAN TOBACCO

Broadway

John G. Greenburgh
Treasurer.

New York 6, N. Y.

Treasurer

v

LIMITED

August 14, 1956

TENNESSEE

L. V. Tracht,

Vice-President and Treasurer
1525

Fairfield

Avenue

>

LGAS
CITIES SERVICE COMPANY

company
HOUSTON,

on

a

quarterly dividend of sixty cents ($.60)

its Common stock,

per

August

holders of record at the close of business
August 17, 1956.




ERLE G.

AMERICA'S

LEADING TRANSPORTER

The

share

payable September 10,1956, to stock¬

Sh reveport

92,. Louisiana
10, 1956

1

transmission!

Dividend Notice

The Board of Directors of Cities Service
Company has de¬

CHRISTIAN, Secretary

at

Code

to

COMPANY

share

payable September 26, 1956,

a

the

per

for

clared

>
-

Mayfield and Trennis K. Lile

NOTICES

Case

: \
,

July

all-time

30,

.

first

1955.

amounted

the

period from July 1, 19SS to June
1956, such period being the 12month period beginning on the first
day of the month next succeeding the
effective date (June 8, 1955) _of the
Registration Statement filed with the
Securities and Exchange Comm ssion
relating to the sale by Electric Bond
and Share Company of 525 036 shares
of common stock ($10 par value) of
United
Gas Corporation.
Copies of
such earnings statements will be mailed
upon- request to any of the Corpora¬
tion's security holders and other inter¬
ested parties.'

1956
an

(Special to The Financial Chronicle)

s

S.

any

DIVIDEND

40%

sales 'for
of

PASADENA,

July,

largest

to

Two With J.
:

i

July 31, 1956.

Putnam Fund purchases of
shares during
the

close

months

seven

;

$77,042,324,

$55,144,203 in

previous

Net

months

to

of

crease

and

high; of
registered
period last year," Mr.

same

seven

amounted

ever

b.y the corporation

above cthe

Fund, Inc., reports July 1956
$13,384,696, an increase of

sales of

figure of
Hare, Vice-

earnings statements of United
tion

an

July, 1955.

'

*

for the month and about
13%
above the July,
1955

on

sales

represented

57%
i

-

„

Securities Series of mutual funds
during the month of July aggre¬
gated

fund

of
'

$291,945,833

July reached the highest
level for any month of July in the
fund's 27-year history. Gross sales

tional shares, Mr. Randolph stated.
The number of plan holders in¬

Month Period Ended

made

A

value

asset

Sales of

history .of the fund, up 38%
July last year. With redemp¬

for
the month down
7%,
the amount of net new
money en¬

its

on

Securities of mutual Linds
reached a new high of

Guaranty Trust
Company of New York obtain certifi¬
systematic program for regular in-" cates giving particulars of rates of
vesting or for plowing back divi¬ United Kingdom Income Tax appropri¬

GAS

United Gas Corporation has

was

shareholders

tional

month of

of

of

the

record

a

July. 31, last, holders
of Wellington shares totaled
185,000, placing the fund among the
ten largest companies in the coun¬
try in number of shareholders.

Hare

lower

eral,

One of every four National In¬
vestors
shareholders now has a

Earnings Statements for Twelve
June 30,

in¬

a new high
of
increase from $57,289,942 at the beginning of the
year and from $55,111,650 on June
30, 1955.
/>

CORPORATION
"■

Corp.

moderately in value in the
second quarter of 1956 in contrast

$65,000,982,

EARNINGS REPORT

UNITED

Investors

creased

Net

Notice to

★

*,

number

has

now

books.♦>At

of Seven Pence for each Ten Shillings of
Ordinary Stock for the year ending Sep¬
tember 30, 1956 on the issued Ordinary
Stock of the Company free of United
Kingdom Income Tax.

Mutual Funds

,<

appears that the capital
including the investment

now

market,

Wellington

Fund

$34,248,186 which

eliminated.

was

Make Records

on

Federal

1

alum¬

Fund Sales

expects to go ahead probablj
next week. Associates Investmen.

firming in the cost of

commer¬

in

now

5 short-term money to the
Treasury
on its weekly
bill "rollover," to¬

gether witn markups in

made

were

tions

in the

month

Watching the, Federal

"

vestment

at

,

3.17%.

Bankers
repriced the current
issue for public offering at 101 for

h

Corp. which has
million

ments.

Reductions

with

rising level of costs.

is

in fields

_

of three

out

having a substantial interest
relating to atomic energy.

pany

standing inum, chemical and railroad hold¬
ings, and the textile industry in¬

And

off

balance

debentures for
held.
There will

not be any underwriters

been spoken for with hopes high
the

of

shares

that

r

entitled to sub¬

are

$100

over

ington

ume

continued

definitely set Tuesday for the fully invested in common
stocks
opening of competitive bids.
this week with its
during the second quarter. Avia¬
program for
Detroit Edison Co. has a $59.7 tion, electrical and
electronics and
raising $40 million through tne
million
offering
of
convertible public utility common stock in¬
saie oi a new bond issue.
^ V
debentures scheduled for
T The
offering vestments were increased, and a
30-year,
first
mortgage to
shareholders starting next, new position was taken in a com¬
bonds drew a total of four
bids,

assets at the end of July last
year.
Mr. Wilkins reported that Well¬

43

DIVIDEND

NATURAL GAS

regular quarterly dividend of 35c

share

Stock,
NO. 36

^1

TEXAS

OF

has

been

payable

declared

October

holders of record

on

on

1,

the

1956

per

Common
to

stock¬

September 7, 1956.
J. E. IVINS, Secretary

Thursday, August 16, 1956

Chronicle

and Financial

The Commercial
44

(720)

These

paid for

Nation'* Capital

from the

a

method of
paying in cash for buildings it

X UlA

,

wants,

With

Eisenhower

j

Congress has
seldom

'

perfected another

for an occasional
occurring Treasury

remedy

■

after year into eternity.
So in effect, the new fiscal
laxative works while people are

Administration,*

v

oess—fiscal congestion.

*

;
*

V
.

.

is rated as of efficacy in fore- ;
stalling the occasional piling up
This

remedy

considerable

gentle but sure. And

is

effect

remedy - is
steaming up the scale of pay¬
ments and the objects of such V
payments • under
the ' grants
particular

too

dividual payment

eral-state

the_tent of
that agency so drolly called the
"Social
Security
Administra¬
tion."
Most people
think of
"social security" as that thing
which nicks their payroll 1Y2%:
—soon
1%%—and supposedly
under

Federal

Actually, this is only

which

Treasury

the

accounts

'system of
the

part of

.

uses

a

"matching funds" by
Federal Government

half or more—most often
more—of what the state pays to

pays

blind.

•„

,

.

was

bulled

ihe

;

.''

last

to new powers

up

session

as

'<

in

pay for
why some

demonstration projects" in

the field; X. >'■

XX- -.X-X.X:.p

from no special X-'
"Another new program is the
taxes.
It comes from "general iz
authorizing of funds to train
revenues," which often as not
means
from
the cuff, except I
personnel in public health, vo¬
when an unprecedented boom ' cational rehabilitation, and child

than $8 ?
billion above what that Admin- j
istration expected, as happened 1
blows up revenues more

*

'i

in fiscal 1956.
How it Works

—Amendments

!

j in five bucks or $2.50, as the
case may be, toward supporting
: the indigent aged, the disabled,
or the feeble-minded.
;
J
f

not only raised
the bucks it will let loose under
Now Congress

| this program, but will include
; payments for new programs en¬
acted at the last

session.

A few dollars a

;

head a month

there
but
when the recipients of each run
as
they do into the hundreds
of thousands, then it becomes
and

here

few

a

like

sound

doesn't

more

money,

real money.

.

In

is

and

was

secretive
The leg¬

all out in the open.

However, newsmen have a con¬

genital distaste for such triviata,

probably cor¬
rectly, so do their readers. Be¬
sides for each front page fight
such as that over whether the
disabled shall get pensions at
age 50 and women at age 62, or
whether $1 billion shall be cut
and

they figure

from

the

foreign

charity

pro¬

there are at least a dozen
of these "small" bills which pass
unnoticed in the great and in¬
gram,

digestible glut of news, each one
of these new programs

commit¬

ting the government to programs 4
of from tens

of millions to often




Con¬

make sure, among
that .v"physically
mentally handicapped"
under

children

16

are

loans

■

eligible

said that
"the
asked • for
the largest amount of money for
medical research ever requested
of Congress in one year.
The
appropriation
finally
enacted
was
for a larger amount than
Folsom
Administration

Secretary

v

the gov¬
farm mort¬

—

the
House
Agriculture as
"economic emergency" loans.

so

given farm product declines
seriously as to jeopardize the

farmer or

ernment can

tended two more

"temporary"

to he $65

V

present time Farmers

Home may

lend initially $7,000

and the

authorized

million instead of $15

million.

Lease-Purchase Business Grows

Living With The Antitrust Laws
Professor Herbert C. Morton

close

the

Congress

a

offices
Federal buildings of one
of another were in the

total of 99
and

of

Federal post

under

Administration

the

Eisenhower-

lease

-

purchase

Administrtaion, Dartmouth

lege, Hanover, N. H.
Pension And
In

son

Avenue, New York

running a competition
Republican team.
Otherwise, Mr. Benson would
some day rate a Legion of Merit
award from some future Demo¬
cratic Administration and per¬

plement—Bank for Internation
al Settlements, Basle, Switzer
land (paper) Sw. Fes. 15 (orig
inal publication plus nine sup
plements Sw. Fes. 75).
Texas-Louisiana Gulf Coast Leas
pany,

Macha Drafting Com
6132 Almeda, Housto

Texas

($7.50 quantity prices o

—

request).

TRADING MARKETS

in
of
of

Morgan Engineering
National Co.

FOREIGN

to

give

his

Depart-

•

SPECIALISTS

NEW YORK 4, N. Y.

Sightmaster Corp.

LERNER & CO.
Investment

TEL:

Securities

-

TELETYPE NY 1-971

HANOVER 2-0050

10 Post Office Square,

;,k'
has persuaded

SECURITIES

SO BROAD STREET

'■

For Mr. Benson

Congress

Riverside Cement

Carl Marks & Co. Inc.

on

ture.

Botany Mills
Campbell Co. Com.

United States Envelope

erected in his

the park-like Mali
front of the imposing pillars
the Administration building
the Department of Agricul¬

memory

Its
Countries—Ninth sup

Regarding
Various

Fashion Park

the

haps have a statue

22, N,

Switzerlan
Payments Wit

Regulations Issued by

Indian Head Mills

always
with

Reorganizatioi

Meyer M. Goldstein — Pensio
Planning Company, 625 Madi

A. S.

admirers of Ezra T.
Benson, the Secretary of Agri¬
culture, must think it is a shame
that
thd Democratic team is

(paper).

Profit Sharing Plan

Business

Lending Powers
Many

Busines
Col

Tuck School of

Amos

Map
At

kind

■

years

available were

works
-

credit, the gov¬
step in. This initial

"temporary" function was ex¬

funds

requested."

Wins Broad

cattleman's chance of

getting private

however, it prob¬
ably will be extended indefi¬
nitely. This is a device for tak¬
ing lending business away from
private business and putting it
under public sponsorship.
„

the price of

any

new programs,

X

by

on

In-other words, if

Theoretically this refinancing

Production Loans

emergency" is

"special

Committee

or

Ease

scheme was

physical emergen¬

characterized

"family sized"

Like all

Man's

families.

droughts or floods.

The new

refinance private in¬
when the latter is
inconvenient terms like 5,

riod only.
:

Business

them in

activity is for a three-year pe¬

for Federal assistance.

Benson

on

for

cies, such as

aid

;

to

At the

nothing

about these programs.

islation

amendment

Home

Company,

"special emer¬
gency" loans.
Farmers Home
already can lend to farmers to

pet

.";';

■

&

X;XX Xrx'XX.X;"? ■';X xxXiX*

voted, so-called

20 years, and put them
into 40-year
loans.
For good
measure,
Farmers Home may
insure a second mortgage loan ~
where it cannot accommodate a
farmer otherwise.
10,

gress seeks to
other* things,

Noticed

There

for

well as assistance to
; i
V

another

-r'

Johnson

Hugh

Inc.

Administration a

"temporary"

new

debtedness

needy people."

had been

^Little

gage

farms

specifically em¬

viding appropriate welfare serv¬

'

1

that Farmers

.

must have large

Early in the

officially provided

ernment—can insure

share in states'

ices,"~"as

is now

It

the Federal Government
costs of pro¬

power
to

Eisenhower.

Street.

State

for

$20,000, these farm¬

tion loan of
ers

Dwight D.

project of President

.

.

The basic modus operandi is
that Uncle Sam will chip in
five bucks if the state will chip

J:

Redevelopment" program, a

programs,

131

formerly Boston manager

Home is supposed to
guardian of the "family
sized" farm. To need a produc¬

under the

This will
cost (initially, of course) only
$5 million, and will pay 80%
of the cost of these training pro¬
grams, state and local agencies,
but 20%.
/' ;i]"t *X
y-X; r';

welfare

Co.,

&

He was

the

be

under-privileged farmers
Departments' "Rural

these

Blatt

associated with B. C.

Morton

Farmers

the

loans. These will be used to en¬
hance the
economic status of

t

Chronicle)

repayment.

Farmers Home

.

have 10 years

in Chicago.

Blatt With B. C. Morton

has become

government of $20,000 in
operating loans, and in emer¬
gency cases

was

Merrill Lynch, Pierce, Fen-

(Special to The Financial

to

indebtedness

total

a

for Ver-

and prior thereto

BOSTON, Mass.—Louis C.

the

new powers of
is the authority
to help part-time farmers to get
credit, through insured or direct
Among

; V

people are poor. Some $5 mil¬
lion is authorized for "research
and

The

loans

Democrats ever come
back to power, they won't have
to
fight
a
hostile Republican
Congress to get those powers,
for they are now law.
the

case

first time,

research into learning

comes

money

and a maximum
of $10,000 at any one time to
any one borrower for operating
purposes. It has now been pro¬
vided that a person may borrow
initially as- much as $10,000,
have altogether Jn
subsequent

for seven years

Home

Co.

and Beane

ner

bit of

about you taking a
recently?"

X

X-X?

'• presumably, is going to

■

handy^ j

the

dependable fiscal laxative.

-Anything to that rumor
a
market loss

ment's Farmers

People Poor?

Uncle Sam for the

which

This was the scheme

■>.;

Why Are

halt, and the
'."I- 'I

help the lame, the

payments^for

v;'X Si X:X: X

insurance,

&

CANCER-GIVE!

with

it

Midwest Stock

merly Mansfield manager
coe

HELP CONQUER

-

On dozens of

circus.

with

Mr. Holevas was for¬

Exchanges.

%

|

Adminis¬
Uncle
Sam
already
assists >
tration more
money to make
states to pay for medical care.
loans or to insure private loans
These payments also go for the
for a greater variety of purposes
disabled, the aged, the blind,
than the agency has ever had*—
dependent
children.
This is
liberalized and hereafter will., X far surpassing previous Demo*
cratic Administrations. Just id,
include
payments .for medical

after age 65.

the great

the New York and

children.
(Inpidentally, in all the above categories
Uncle Sam's share far outweighs
what the states must pay). ..X,.' (?

for them for a pen¬
sion which comes to them at or

Tom

Ohio —
associated

Merrill, Turben & Co., Inc.; Union
Commerce Building, members of

dependent

saves money

*.

monthly

is: now

Holevas

will be added in

Two dollars

Chronicle) '

(Special to The Financial

'/

CLEVELAND,'

V

which will be
old age assist¬

participation plan.

Merrill, Turben Adds

v

..

the
totally disabled under the Fed-;

which

and huge costs

housed

are

of
be

aid Jo the blind, and

ance,

of

multiplicity

the

of

aware

programs

are

views.]

the "Chronicle's" own

$55, the largest in¬

month from

scene" inter¬

pretation from the nation's Capital
and may or may not coincide with

.v

made for indigent

people

many

;

Beginning Oct. 1, the Federal
Government will raise to $60 a

^social security" program,
Not

few
will

programs

f

fleet the "behind the

amounts
objects
by the

leading

; This
eliminates alL but the
downpavment or annual instalfrom the budget.

[This column is intended to re■*

which
mil¬
only

mentioned.

insecure X'

fiscally

the

of

phase

:

the additional new

the

looking."

-

additional

the

and

remedy •
of
expenditure voted
while you are not
Congress. However, „• a
V;;XXX...;,v, ;X•

Is: "It works

The

panoply of programs

cover

*

in

X ment due,

guarantee (?) [security to
lions, and then one could

motto for the new

the

s

this

in. the
laxative

funds
fiscal

of
taxpayers',
|5 Treasury.
Its

V

...

pagesljust to
briefly summarize and describe
take

would

It

use

25-year lease which

a

practical fact is a loan.

Some Programs

^

^

Federal

for

exclusively
under

not looking.

and
ill-

now

"lease-purchase"

a

with a "private en¬
terpriser" who will undertake
to
build a structure designed

year

—

into

agreement

annually,

million

$100

over

cooperation of the

WASHINGTON, D. C.

government

the

enters

•

•.

-

of

instead

taxes,

estate

using the traditional

y

X the heartiest

and

down

4% principal each year for 25
years,
plus interest and local
real

A y* gA
jTLIIU

Behind-the-Scen® Interpretation*

the in¬

on

4%

plan,

stalment

>

will

projects which

are

be built and

on...

cost

program.
Their aggregate
will exceed $683 million.

BUSINESS BUZZ

r-

Telephone
HUbbard 2-1990

Boston 9, Mass
Teletype
BS 69