Full text of Commercial and Financial Chronicle : August 18, 1955, Vol. 182, No. 5456

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

UNIVERbll Y

A

OF MICHIGAN

RAILROAD INDUSTRY FEATURED IN THIS ISSUE

Reg. V. 8 Pat

Volume

Number 5456

182

EDITORIAL

New York 7, N,

SeeWe
It

abundant

is

evidence

that be have grown uneasy
have
and

extraordinarily

they taken certain
and made

that

the

powers

show of

some

than weak and

about the boom they

can

or

less

means

extension

up

their

value.

of

a

more

within

informal

sort

It is

bounds.

authority

desired.

The

has

market

sharply

value

sterns

current reports of confer¬
subject are we are in no position to
say, but we find some encouragement in the ap¬
parent fact that no program of legislation and
governmental control of this, that, or the other
phase of credit management is in the making. It
is reported, and it appears plausible, that bank

world.

of

'

Let us be frank about iti There can be

sonable doubt about the fact that the
Continued

no

on

-

DEALERS

at

now

market

that

end

an

HUGH W.

as

both

point

to

that

the

The

field

will

rapidity alone of the
being in question. The rate
in value of paper

being

unpredictable

because

many

unforeseeable

circum¬

which

it, I

may

retard

or

most

encouraging development this "year in the
the viewpoint of the In¬
terstate Commerce Commission, has been the marked
improvement in net earnings oi rail and motor carriers
over
tne generally poor showing in

opposite

decline

a

propose

of

transportation, from

1954.

.

i

'

responsible

portant to

afforded

a

—

"

1954.

been

is

year,

period

carriers
increase

in
of
of

income

net

4

•4

improvement, however, has
entirely in the field of freight

i transportation.,, Passenger
traffic,
both
by
rail
and
intercity
bus,
showed declines and continued to be

im-,,

so

tiugn

Utfss

w;

one

Continued

Underwriters,

on page

jurisdiction.
Class I

the

most

:

serious

problems

;

railroads reported 5.7%

32

dealers and

of

facing the surface carriers subject to this Commission's

Its size and form are too well known to
require description.
A paper of the exact dimension
of one such dollar may also be one thousand or even

are

of, this

same

The

w- derived?
ment imprint.

securities

the

Class
I
motor
property
reported an
more
than
100%
in

whom he

What is the nature of its value 5s a
and from what is that value
The dollar itself is a paper bearing a govern¬

r

months

during the first quarter of this year,
compared with the same period in

exchange

27

,

in net income during

1954,
'

many?

so

of

...

....

Just what is this dollar the future of which

medium

...

with

compared

accordingly.

What Is the Dollar?

.

.

crease of 91%
the first five

accel¬

no

the affairs of those for

is

' ;
Class I railroads reported an in¬
,

I

certainty, that prdinary prudence
tfyat one Conduct his affairs

: .or

William Chamberlain

CROSS

Chairman, Interstate Commerce Commission

and

reason

the

the

SECURITIES NOW IN REGISTRATION

porate

the

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

I suggest that it is not

and

—

dollar

paper

in

the
„

; dictates

or

page

measures

discussion of
that. What I propose to discuss is
the suggestion that continued depreciation of the paper dollar is so near

.

rea¬

banks,

privileged to present today
opinions of the chief officers of a representa¬
tive cross-section of the nation's railroads, along
with that of the Chairman of the Interstate Com¬
merce
Commission, on the economic outlook for

money

erate

-

V

-

States

decline

end

stances

!

-

\

The "Chronicle" is

the

depreciation

of

things that have been
taking place, especially in the field of instalment
lending, and possibly real estate mortgage
operations.
'

pects for individual roads and the industry in general.

continue—the

of the

Lending-

the

an

decline

.

Loose

United

experience

possibly real estate loans of the
banks1 which in one way or another come under
the supervision of national authorities. It is pos-;:
sible, indeed probable, that these banks have al-'
ready been told how the Federal' Reserve authori¬

.

standard of

a

demonstrated

conclusion

examiners will make closer inquiries about the

some

Is

at

'

.

the

ties feel about

the

as

frequently to be assumed?

.

accurate

of

declined

places of the

>

and

as

of paper money iand analyzes

menace

shows no well-established paper money inflation has been
permanently stopped before complete disaster sets in.

do not know—that Dr. Burns,

we

Discloses

Says history

hold

to

the nature and characteristics of

on

medium of exchange and

agant spending will cease, or other inflationary
will be taken to avert permanent inflation.

said—with

Chairman, has made it clear that action is

consumer

Copy

a

In articles especially written for the "Chronicle," chief \
officers of many of the nation's leading carriers, also•'
Chairman of the ICC, present opinions as to the pros-,

U. S. monetary si'.uation. Holds the political
atmosphere makes it improbable that government extrav¬

scarcely be termed other

what

how

Cents

Outlook for thr Industry i

industrialist, in calling
depreciation in the market value of the

the present

own

CEA

on

Price 40

and

executive

dollar, comments

orthodox steps

stiffening

utility

money as a

hesitant—but, according to what

other

ences

Y., Thursday, August 18, 1955

President, United Light & Power Company

attention to the

to be reliable reports, have been seeking

credit

Just

Former

credit. Not only have

easy
more

spine—all of which
appear

Office

By WILLIAM CHAMBERLAIN
Former

sedulously encouraged with kind words

so

1955

.

As
There

AUG 19

more

freight

Continued

.

on

revenue

page

investors in cor¬

complete picture of issues now registered with the SEC

and potential undertakings in our

"Securities in Registration" Section, starting on page 37.

State, Municipal

in

7

rUi'S* Government, '

Slate and

Trade Bank & Trust

Municipal

•

(New York City)

-

Securities
telephone;

and

"A

HAnover 2-3700

•

A

•

Priced

STATE

BONDS

book value

Public Housing Agency

COPIES OF OUR
NEW

growth equity
below

#

MUNICIPAL

AND

BOOKLET

"ATOMIC

Bonds and Notes

ENERGY

REVIEW"

CHEMICAL
CORN EXCHANGE

Analysis

Request

ARE NOW AVAILABLE
ON

J. R. WlLLISTON & Co.
eSTABLISHEO

BANK

MEMBERS

ANO

BOND

on

OTHER

NEW

STOCK

YORK

ANO

1601

STOCK

HARRIS, UPHAM & C°

OF NEW YORK

EXCHANGES

Members New York Stock Exchange

DEPARTMENT

115

30 BROAD ST., N.Y.

Broadway, NewYork 6, N.Y.

Tel.

BA

120

Bond Dept.

Net

To

ri
ITS'

Teletype: NY 1-708

T. L.WATSON &CO.
ESTABLISHED

Markets

Banks

t

Exchange

Stock

Exchange

Brokers

Commission

Orders

Executed

Canadian Exchanges At

STREET

NEW YORK 4,
FIRST

N. Y.

BRIDGEPORT

Dallas




•

PERTH AMBOY

to

BANK

coast

CANADIAN

Central Maine

On

DIRECT

WIRES TO

NEW

BROADWAY

NEW

YORK

COMMON

All

MONTREAL AND

TORONTO

Goodbody a Co.
115

Power Co.

Analysis

department

Canadian

MEMBERS

COMPANY

coast

Regular Rates

Bank and
BROAD

from

Chase Manhattan

5

BONDS & STOCKS

Teletype NY 1-2270

25

offices

YORk

.Maintained

and

SECURITIES

New York Stock

American

Active

Dealers,

BROADWAY, NEW

CANADIAN

1832

Members

Insurance Stocks

34

1-7500—Teletype ny 1-2766

17.

BOND DEPARTMENT

THE

THE FIRST NATIONAL CITY BANK

EXCHANGE

COMMOOITY

•

REQUEST

YORK
1

STOCK

NORTH

EXCHANGE

LA SALLE ST.

CHICAGO

DoMmox Securities
6rporati071
40

Exchange Place, New York

N.Y«

WHitehall 4-8161

request

IRA HAUPT & CO.
Members
and

New

other

111

Boston

York

Stoch

Principal

Exchange

Exchanges

Broadway, N. Y. 6

WOrth 4-6000

Teletype NY 1-702-3

upon

Teletype NY 1-2708

Telephone:

Enterprise

1820

6

The Commercial and Financial Chronicle

(666)

2

For Banks,

The

Brokers, Dealers Only

Bausch & Lomb

Canadian Superior

Security I Like Best

A continuous forum in which, each week, a different group of experts
iu the investment and advisory field from all sections of the country

Oil

Chemical Corn Exchange Bank

participate and give their

reasons

(The articles contained in this forum

they

are

Giant Portland Cement
Great American Insurance

be regarded,

to

WILBUR

HOLLY

H.

Di-Noc Chemical Arts, Inc.

Long-Bell ^umber of Mo.

Di-Noc

Metal & Thermit

(formerly

Company)

It is difficult in this high mar¬
ket

Sulphur

to

name

stock

a

curity I Like

Tennessee Gas Transmission

"The Se¬

as

Best."

I

However,

have in mind the stock of

com-

a

United Artists

the

at

New York Hanseatic

Corporation

5 !/4 %.

b

120 Broadway, New York

Private

5

Wires

classi¬

so

fied

by

many
W. H. Holly

who take time
to

Specialists in

this

read

article.

The

stock

that

is

of

a

Ohio corporation
which recently changed its name

Rights & Scrip

Di-Noc

to

former

ffipONNELL & (b.
Members

120

Stock Exchange

BROADWAY, NEW YORK 5

familiar with its

very

in

1937,
facilities

its

capital and
en¬
abling the company to increase its

$300,000
in 1935 to $1,100,000 in 1941.
When

Trading Markets

tered

time

Gas Company

Dan River Mills

Scott, Horner &
Mason, Inc.

lesser

extent,
Advertising

a

Due

wartime

to

products,
among
complete line of In¬

a

Photographic

Film for
Graphic
Arts
Fields
which
require
a
dimentionally stable film for such
things as map making, tooling and
the

in

Aircraft

and

engineering operations, templates,
etc.

L A. DARLING

The

1945

for

to

$2,253,000

the

were

Com. & Pfd.

first

in

Sales

1954.

months

six

slightly

of

1955

unfilled

and

largest

in

Members

for the

same

1051

Stock

the

Exchange

Penobscot Building

DETROIT 26, MICH.
Woodward 2-3855
Branch

DE 75

Office—Bay

City,

total

which

TRADING

MARKETS

Of

volume, 35%

was

m

d

n

a

or

changes
c

Film

was

preferences

the

the

lead

investor

think

to

that
that

or

company

be

term
d

applied
utility or gas distribution

panies

although
in

strange

Point-of-

Advertising.

and

of

the

of

of

Mindanao Mother Lode Mines

Marinduque Iron Mines

products

new

are

now

being field-tested, one of which is
described

in

the

following

para¬

graph from the Annual Report of
the company

for 1954:

such

"Some years ago we were pre¬

&:C0.

1919

vailed

upon

by

the

develop

Automotive
type

Industry

to

New York Security Dealers Ass'n

transfer

to

take

the

! Exchange Place, Jersey City 2«N. J.

chrome

and

other

bright, metal-

a

new

com¬

have

I

where

dynamic

growth

and
be

cannot

promised

but

point toward
mal

growth

consumer

where
a

of

indications

greater than nor¬

territory

and

of

demand.

Tel.JfEnderson 5-9490

Teletype J CY 783

lie finishes for interior trim.

of

We

New York City Telephone BArclay 740045




have

recently

submitted

such

a

investors with knowledge

south

across

the

of

Call

A front page article in the New
York

"Times"

describes
tion

of

the

of

weeks

two

plans for the

community

a

inhabitants

on

ago

Securities Co., Ltd.

200,000
15,000-acre tract

a

Established 1897

area

Home

Ocean

of

about
The

County,
miles

60

New

from

Jersey,

New

community

new

of

in¬

Brokers & Investment Bankers

111

Broadway,N.Y.6 COrtlandt 7-5680

clude thousands of

homes, several
shopping centers and
recreational
areas
centering 011
lakes in the region.
The land is
reported to have been purchased

factories,

for

that

plans

and

purpose

than

have

would

far

effect

'casual

a

Write for the

are

apparently being drawn up. With
a population of 370,000 in the 100
communities now served, such an

LATEST INFORMATION
on

more

the

upon

company.

URANIUM

Regardless of this proposed de¬
velopment
and
even
without
knowledge of this impending an¬
nouncement, it has seemed to me
that
New
Jersey
Natural Gas
Company Common Stock is an at¬
tractive security for one who de¬

CORPORATION
OF

seemingly inevitable growth
the

at

relative

same

time

stability

the

wants

by

afforded

AMERICA

a

utility operation.
The annual reports of the com¬

New circular sent

will reveal the growth and

pany

as

consolidation

a

on

request

two

of

was

balance for

a

McCOY & WILLARD
Investment Securities
30 FEDERAL ST., BOSTON
New

direct

wire

to

New

York

REctor 2-4208

common

A.

T.

T. Teletype

&

—

Boston

128

against $393,earnings per share were
against $1.27, there having

and

New

shares issued

un¬

per year

1955, should

neighborhood of $1.85 to

The stock is

$1.90.

HoW

Earnings for the full

ended Sept. 30,

$1.00

now on a

basis and it

seems

entire¬

ly reasonable that with the

con¬

tinuance of the earnings trend an

in

time

to

least

at

latter

the

calendar year

$1.20
part

some

of

would be in

this
pros¬

pect.

The present market for the

stock

does

not

seem

to

discount

N. Q. B.

this possible dividend increase to
too

great

an

extent,

and

OVER-THE-COUNTER

future

earnings improvement being well

view, with the consequent

14-Year Performance of

dividend, the present price could

35 Industrial Stocks

York

Bay

City

from

the

Jersey

to

Cape

short break in and

Atlantic

?

INDUSTRIAL STOCK INDEX

beginning di¬

New

Lower

a

Office Tokyo—70 Branches

York.

would

prove

to be

at which to

New
common

an

POLDER ON REQUEST

acquire the stock.

Jersey
is

advantageous level

National

traded

in

Gas

the

,1

Co.

National Quotation Bureau

Overi

May, with
around

write

Yamaichi

crea¬

of

in the Lakehurst-Toms River

or

likelihood of improvement in the

metropolis and extending the full

length

of Japanese potential.

plish.

within

pany serves an area

rectly

the

Gas Com¬

Members

place

which would otherwise have

of

taken many more years to accom¬

increase

which

selection

New Jersey Natural

(

area

be in the

tre¬

them.

company

have unusual appeal

may

to investors with vision—

seem

the

made for this issue is the stock of
a

SECURITIES

service

year

would

it

light

growth

spectacular

and

development

com¬

prices of the stocks of many

The

offices

and

ferred stock.

0 m

to

In¬

Field

Plastic

Sale

lead

to

branch

JAPANESE

more

is undoubtedly
to the growth

but

enders,

our

der warrants attached to the pre¬

the

Industry,

week

scheduled

to

Parkway.

vacationers

to

wires

by the recently
State

been additional
Stolle

Carl

sel-

is

Mobile, Ala.
Direct

service

communities

these

available

$1.50

The

s e.

panies in siYe, in earnings and in

Picture

make

000

earnings-

i

NY 1-1557

stock of $538,000 as

may

benefici¬

a

ary

York 6, N. Y.

HAnover 2-0700

Parkway is not only helping

There

the

Television

The

or

improved
methods

entire

19 Rector St., New

New Orleans, La. - Birmingham, Ala.

properties which had no
outstanding with the public.
The last earnings report, for the
nine months ended June 30, 1955,
reveals gross revenues of $7,604,000 as against $6,744,000 for the
same nine months a year previous.

and

accounted for by

The

Garden

known

Members New York Stock Exchange

Members American Stock Exchange

stock

to

Motion

the

to

The

shore

as

Steiner, Rouse & Co.

in addition, a
serving Dover

traversed

opened
to

is,

Bought—Sold—Quoted

older,

in

nsumer

0

Division

33%

Industry,

is

area

1952

-

Philippine Oil Development
Lepanto Consol. Mines

Established

Louisiana Securities

earnings which have taken place
since the company was formed in

growing de-

motive

Many

M. S. WIEN

busi¬

mendous

dustry,

FIRM

period of time.

sales

the balance

For Financial Institutions

the

were

company's history

promising

in

engaged

are

represented in sales to the Auto¬

sales

'

orders

the

Photographic

Mich.

than $1,500,000

more

MORELAND 6 CO.
Midwest Stock Exchange

"growth stocks" is
directed
toward
the
of
industrial
companies

stocks

w

Detroit

(for¬

Com¬

lesser

division

Boonton.

and

term

this

>

Sales increased from $900,000 in

and

famed

others

There

northern

sires

Jersey Natural Gas Company

where

use

QUOTED

New

ness

new

STOLLE

CARL

v,

of

was

around 7%.

President, G. A. Saxton & Co., Inc.
I .New York City

lines

of

Over-the-

traded

Counter and is selling

in

dustrial

SOLD

is

stock

usually

which

and

growth of this

restric¬

1942.

communities long

at the end of this year.

The

Gas

Natural

expansion

tions, in the fields where the com¬
pany's activities were most prof¬
itable, sales dropped to $350,000

line

LD 33

cents

en¬

During the period from 1943 to
1945
the
company
developed a

Lynchburg, Va.

—

to

Point-of-Sales

Field.

Company

BOUGHT

Inc.

Carl

—

quarter and it is expected that an
extra dividend will
be declared

confined

Industries and

1954.

of

being paid at the
a
share each

are

10

of

war,

was

the

Commonwealth Natural Gas

"*

States

six

first

year

were

period

same

rate

principally to
Automotive, Radio and Furniture

Alabama-Tennessee Natural

Tele. LY 62

United

and

Stock

reported by
61c per share,
about double the earnings for

this company lost
8f5% of its business which at that

Furniture Company

American

the

the

Bonded

no

the

for
this

of

company

Dividends

low point of

a

is

Preferred

nor

Earnings

the

refinanced

There

months

or

sales from

of

Assets

Current

265,122 shares of Common
Stock outstanding. The company's
cash position is excellent.

policies under which its business

was

ade¬

to

only

has been conducted.

added

TEL. REctor 2-7815

(Debt

the

tal,

able

are

shows

payable.

management and the conservative

The company was incorporated
in 1923 with a very modest
capi¬

Stock Exchange

York

am

we

in

be used

when the balance will be due and

of The Di-Noc Com¬

name

I

pany.

American

Chemical

Arts, Inc.,
which is more descriptive of the
company and its products than its

Since 1917,

will

product

$200,000 is due and payable at the
rate of $40,000 per year until 1958

Cleveland,

New

Arts,

Stolle, President,
G. A. Saxton & Co., Inc., New
York City. (Page 2)

inland.

fields

other

many

until

pany

will

ment and

be

this

Jersey

pany

pro¬

will

$1,203,274 and Current Liabilities
of
$469,563.
The Company has
notes
payable
of
$240,000,
of
which
$40,000
are
included
in
Current Liabilities; the balance of

specula¬

tive invest-

Principal Cities

to

are

which

New

resorts

The Balance Sheet of the Com¬

classified
a

automobiles,

which

of

There

should

e

as

Teletype NY 1-40

WOrtb 4-2300

Chemical

Holly, of Sage, Rutty &
Co., Inc., Rochester, N. Y.
(Page 2)

of

supply the Automotive
Industry, it will be necessary to
confine this development to that
Industry."

prob¬

ably

Exchange

1957 line of

the

introduction

the

quately

The

refer

I

with

incide

but

stock to which

1920

Member

Stock

Alabama &

Selections

bur H.

the

to

a

yield of about

American

Di-Noc

nor

jprobably
begin in the late summer of 1956.

same

time affords

be,

to

larger com¬
panies in the Automotive Indus¬
try and it has been received with
enthusiastic approval. Due to the
special type equipment used, it
will probably be 1956 before we
can expect any great volume from
this development.
This will co¬
product

duction

which
shows promise
of growth and
p a n y

Three States Natural Gas

intended

not

are

new

Rochester, N. Y.

Investors Div. Services "A"

Established

particular security.

a

Their

offer to sell the securities discussed.)

as an

Sage, Rutty & Company., Inc.

Harshaw Chemical

Associate

for favoring

Week's

Participants and

merly Di-Noc Company)—Wil¬

Chesapeake Industries

Pan American

This

Forum

Thursday, August 18, 1955

..

.

City.

It

serves

the-Counter

and is

ing at about 24.

currently sell¬

v*

I

~

Incorporated

46 Front Street '

NewYork4,N.Y.

Volume 182

Number 5456

.

The Commercial and Financial Chronicle

..

INDEX

Are Common Stock

High?

By RAGNAR NAESS

Noting great past lag
ing

York

Future of the Dollar—William Chamberlain

Ar.e

Common Stock Prices Too

City

High?—Ragnar Naess

When
decide
g

Beware ol

False Liberalism—Lothair Teetor

11

—see

low

point of Dow-Jones Average

far
downside, and such adverse "odds" will increase
rapidly with any further stock price rise.

less than

has

taken

basic

the

quately

double

to

or

have

that

taken

SEC

"D"

This

point

of view

that

stock prices could

common

reflect

would

(Letter to Editor)

According to National Industrial Conference Board Analysis 19

Currency"

On "Irredeemable

Members Salt

23

(Letter to Editor)

"Someting Good About Ourselves"

30

was

possible to say

still rise substantially before they
Bank

Insurance

and

Gulf Coast Leaseholds Inc.*

•

in

last

from

*Circular

as

the

detail

36

changes

NSTA Notes

14

News About Banks and Bankers

28

that

the

Reporter

Governments

on

for

goods following
Some

War.

the war, and
from

came

*

Report

Reporter's

Public

Securities

Utility

as

Securities Now in Registration...

37

—

Security Offerings

greater stability in consumption,

a

tendency toward inflation in

commodity prices, and other economic and political factors which
were not present to any important degree during the period prior

Teletype NY 1-1825 I NY 1-1826

Direct Wires

WHY

.

Best

The Security I Like
The

State of Trade

2

and Industry

Firmly Believe

16

and You—By Wallace Streete

.

We

26

Securities Salesman's Corner

.

to

42

political factors which were not present to any important degree

The Market

inc.

Exchange PI., N. Y.

10

,

Prospective

40

25

—

Securities

Railroad

/

Philadelphia * Chicago * Los Angeles

the

internal

during the period prior to 1932.
changes forced by the Great Depression which have caused a pro¬
found redistribution of income, more rigid costs of manufacture,

mackie,

(

Our

mare

over-the-counter securities

HA 2-0270

47

;_

years,

Korean

&

5

May—

Request.

Singer, Bean

;

r

Our

250

46

—

Wilfred

on

fFe maintain trading markets in
than

Funds

Mutual

Oilf

Request.

13

Indications of Current Business Activity

Observations—A.

tremendous

on

tProspectus

conditions.

the alteration in the social viewpoint toward labor
and the many radical changes forced by the Great Depression
which have caused a profound redistribution of income, more rigid
costs of manufacture, greater stability in consumption, a tendency
toward inflation in commodity prices, and other economic and
changes such

to

Livingston

t

9

Washington Ahead of the News—Carlisle Bargeron___

From

most of which were caused by ex¬
the Second World War, the period of extraor¬

25

demand

deferred

stimulation

in

discuss

not

the

ternal factors such

dinary

Pacific Uranium Mines Co.

business

will

We

i

8

Securities"

Corp.

Stancan Uranium Corp.^

13

Selling Part of Requisitioned Dollar

"Britain

Eilnzig:

External Changes

ocurred

Standard Uranium

14

Investment Recommendations..-

Dealer-Broker

prevail under the future normal economic and social

in

Corpus Christi Refining Co.

Coining Events in the Investment Field

10 years ago happened to be very low indeed in
activity, earnings and dividends that would

or

office

City

26

Stocks

Bookshelf

Business Man's

anything, have overadjusted themselves to the
basic changes that haye occurred. They have, so to speak, "been
brought into line" with the realities of existing conditions.
The past years have, therefore, been an extraordinary period
when it was possible for common stock prices to enjoy a sensa¬
tional rise without becoming too high simply because the level of
to

Lake

Cover

themselves and, if

prices 5

branch

to

Regular Features
(Editorial)

It

See

We

As

Today it is possible to make more definite statements about
this subject. The reason is that stock prices have finally adjusted

relation

Teletype: NYl-4643

wire
Salt

readjustment would be completed.

stock

Direct

by stock prices whenever the basic

might be reached

City Stock Exch.

Broadway, New York 4

DIgby 4-4970

31

(Boxed)

Lake

Spokane Stock Exchange

42

Expiration of VA Home Buying Legislation

during the preceding two decades. It was impossible to
gauge just how long it.might take for stock prices fully to reflect
modern conditions or to visualize with any degree of accuracy the
that

J. F. REILLY & CO.

Spahr

George C. Johnson Warns World War II Veterans on

occurred

level

16

.__r_

Dr. Ernest R. Gutmann Takes Issue With Dr. Walter E.

economic and social changes that

the great

fully

it

Western Oil Fields

the

and

Several years ago, or even one year ago,

Voss Oil

-

15

_

attitude even
though the comparisons were made with a period of 25 years ago
and these 25 years were filled with epoch-making and extraordi¬
nary economic and social changes throughout the world.
been

15

Regulations "A" and

on

Europe Auto Production at Record High Level,

Western

decline in business activity, earnings, and divi¬

has

(Letter to Editor)

comment

Amendments

Funds and Stocks

the way up

the

Small Business

Richard A. Houghton Compares Investment Results of Mutual

since stock prices seemed nish
on a historical
basis and a depression was al¬
most certain to come following the
Second World War which
would cause a decline in the commodity price level of substantial
dends.

Empire State Oil

Sees Little Evidence of

10

Extends Deadline for

great

interpreting future events. The investing pub¬
rise in common stock prices

a

4

<?f Homes

Death Sentence to

lic has fought the

proportions and

Corpus Christi Refining

Proposed Revisions of Regulations "A" and "D" Termed

SEC

dependence of the investing
public upon past experience in appraising fu¬
ture conditions.' The impact of great economic
changes upon the consciousness of the public
takes place slowly, and the temptation is great
indeed to act on the basis of past history in

all

27

__

„

Kin-Ark Oil

The
reason
for the long
delay in the
recognition of these fundamental changes in
their impact on stock prices may be found
partly in the resistance to any change which
is usually strong and long lasting and partly in

Ragnar D. Naess

S. Saving-Loan Committee

U.

Over-Building

too

American States Oil

Commonwealth Oil

place.

the

4

Herman VV. Steinkraus Foresees Serious Shortage of Copper..

triple to reflect ade¬

cnanges

4-6551

Higher Dividends

(See under "Railroad Securities"

good many years, for investors to realize that
the inflation in commodity prices since the Second World War and
the increase in the volume of capacity to produce and in the vol¬
ume of consumption have been so great that common stock prices
nave

WHitehall

(Articles especially written for the "Chronicle") Cover

a

would

STREET, NEW YORK

Telephone:

Clicking Rails—Ira U. Cobleigh_-_T
Rail Fundamentals Bespeak

It

Industry

WALL

Rai'road Executives Discuss Outlook of the Industry

Hence concludes the present potential upside is

most 600.

it all

us!

Obsolete, Securities Dept.
99

About the Railroad

during next several
should be somewhat below 300, and the high point al¬

years

end

to

<S>

warranted than when stock prices were relatively low. On basis
of estimated future business activity, earnings, and dividends,

finds

and obsoletes

you

7

Market—Roger W. Babson^...^..

up

THE END OF THE AFFAIR

3

Stock

The

with epoch-making social and economic changes of past
25 years, Mr. Naess states that more cautious atli.ude is now

"

AND COMPANY

Cover

Unsound Aspects of Federal Government Power Marketing
—John Jirgal

part of common stock prices in catch¬

on

Page

The

Naess and Thomas Investment Counsel

licrasTfiii

"

Articles and News

Prices Too
New

a

(667)

Mid-Continent

5

...

1932.
Now

the

that

stock prices seem to have

common

caught

up

with

Washington and You

Uranium

48

_____

epoch-making changes that have occurred, the attitude toward
,

1

.

Continued

on page

33

^Column

not

PREFERRED STOCKS

specialized in

Reg. U. S.
B.

Park

25

DANA

Place,

REctor

Members New York Stock Exchange

25

BROAD

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 2-4300

Albany

•

Nashville




Boston
•

»

TELETYPE N. Y. U

•

•

Chicago

Schenectady

•

•

Glens Falls

Twice

FINANCIAL

WILLIAM

Spencer Trask & Co.

week.

1

Weekly

COMMERCIAL and

The

have

this

Will Become One of the
Published

For many years we

available

land,

Patent Office

New

2-9570

York 7,
to

Publishers

N. Y.

Gardens,

Edwards

c/o

Reentered
ary

25,

London,
& Smith.

E.

by William
Company

Copyright

CHRONICLE

COMPANY,

Drapers'

1955

second-class

as

1942,

at

the

C.

of the U. S.
Febru¬

matter

at

New

York, n: Y., under the Act of March 8, 1879.
Subscription

9576

WILLIAM

SEIBERT, Editor & Publisher
DANA

SEIBERT, President

in United
States,
U.
Territories
and
Members

Thursday, August

18, 1956

Thursday < general news and ad¬
vertising issue) and every Monday (com¬
plete statistical isoue —market quotation
records, corporation news,
bank clearings,
state and city news, etc.).

Possessions,

Pan-American

Union,

Dominion'

Canada,

Other

of

Countries,

Every

Worcester
Other

135 South La Salle St..
(Telephone STate 2-0613);

Offices:

Chicago 3,

111.

Bank

$37.00

and

per

the

rate

of

per

$58.00
per

year;

per

S.

made

in

per

share

year.

Report Available

year.

Publications

Record — Monthly,
(Foreign postage extra.)

account

of

the

fluctuations

York

funds.

GENERAL INVESTING CORP.
»

i

in

exchange, remittances for for¬
New

price around

of

eign subscriptions and advertisements must
be

$2.00

in

Quotation

year.

Note—On

$55.00

$62.00

Other

Current

Rates

Subscriptions
HERBERT D.

Top-Ranking Independent
Uranium Producers

B. Dana

office

post

Eng¬

80 Wall St., N. Y. 5

BO 9-160*

The Commercial and Financial Chronicle

(668)

4

able

Clicking Rails
Enterprise

A salute

to

progress

of

the

Economist

financial, dividend delivering, and operating

railways;

our

plus

of

mention

of the

some

The

clicking of rails

pleasing

cadent

and

been

the stock

on

some

time, been
sound

to

shareholders; the clicking of raili

g machines
has turned in
n

rail

Clicking;

there.

ting

is

get¬

less

no¬

ticeable

is

and

on

Lin¬

Western

both
splitting 3 for 1.
Chicago
Ro_k
Island
and
Pacific, and Union Pacific ru¬

while

before

need to revive

"Ah

rails

on

there's

yes,

good

to¬

news

news, and you
your eyes

plenty of good
almost have to rub

lously renewed lines
Island, Denver
Missouri

Seaboard,

as

Rio Grande,

Pacific

the

as

of

corporate

to

the

almost

"choo-choo,"
elements

of

total

eclipse of the
certain other vital
in

progress

the

last

quarter
For

century should be cited.
instance, entrenched tradition¬

alists
of

the

at

railroads

instances,
men,
more
new

management
have been, in

replaced

helm
most

b,y younger
trained, and

broadly
receptive and responsive to
ideas.
Rights of way have
more

it

regarded

was

nor

as

necessary,

provide sinking funds for

eral

same

creatures that chugged
rustily into bankruptcy almost a
quarter century ago. In addition

and

re¬

As rail bankruptcies broke out
like measles, receivers, and agen¬
cies including ICC and the Fed¬

to recognize such fabu¬

•Rock

retired

tirement.

indeed

is

never

period) stood on the bal¬
sheet, like a financial mono¬

neither fashionable
to

noncha¬

Courts, recognized that part
railway misery had stem¬

the

med

from

too

interest

charges

virtually

no

duce

same

equipment
time for

injected

a

high

debt

(with

to

match)
and
attempts made to re¬

(except
trusts).
new

into

in respect to
It was thus

philosophy to be

Central

changed, al¬
completely, the complexion
railway industry, and pro¬
pelled a number of carrier equi¬
ties, in a decade, from marginals
to, if not blue chips, then at least
tinted

azure

thought,

1945,

that

would

Who

ones.

have

for

appear

today, with

of

(first

N.

J.

applying to scrip, and then
the 3V4S), New
Haven, Rock Is¬
land, etc. Look, too, at the remark¬

so

stock

split,

or

eye

Certainly

& Santa Fe.

in

a

$14.50
here

mented

share

per

revenues

by

dividend

loaded

for

are

Atchison, and

portfolio,

best.

above

At

and

136y2,

5%

a

is

yield,

in
delivers

appeals

SF
and

stock

a

Members

Midwest Stock

American Slock Exchange

Exchange

WALL

STREET, NEW YORK 5, N. Y.
2-7900




Com¬

warns.

the current

item

(by rail, of course) be¬

than

which has
the

favorab7e

Chesapeake

Ohio

&

Presi-

Chamber

of

Commerce

of

the

situation

situation.
which

the

caused

The

started

the

first

occurrence

the

shortage was
down of the great

shutting

Rhodesian copper mines in Africa
late last year. They are the main
of

supply for Europe, and
they were struck Europe
the

"In

July

of

by

year

strikes.

most

mines

copper

Some

has paid some divi¬

in

years

a

row

and

The values found

common

coal,

more

in

C &

O

highly visible: good

are

management,

better

outlook

for

diverse traffic sources,

can

before
be

that

production

here!

to

to

C

&

O

as

major hauler

a

coal, is Virginian Railway Co.,
which since it has always been
loaded with coal, was quite reluc¬
tant

to

take

the

plunge

into

on

this

traditionally

copper

tried to

prices
For

scran

cents

opinion

(1)

that

the

overpriced, (2)
distribution

year,

and

yield right

is

that

shares

that

an

possible

(3)

a

are

extra

this

maintain.

"The U. S. Government tried to

give

some
assistance
by
tem¬
porarily deferring its stockpille
requirements but this gave only

very small

relief to the situation.
"The Bridegnort Brass
Company
has been affected by this situation.

Every effort is being made to
continue production in the face of
our
customers'
heavy
require¬
ments,

and

produce

we

the

striving

are

an

Island

week. In addition to the almost
day and night efforts of our Pro¬

curement
copper,

in

division

over

section

every

devotin"

are

toward

to

ap¬

all

world

back

it will

to

take

can

of

our

per

meantime, work
being set from week
are
currently on a
week

basis.

obtain

the

necessary

return

to

full

making

a

effort to
material to

every

schedule of work

for pur thousands of

employees.

sincerely trust that within

next

two

all

weeks

will

sources

our

fully again, and that a
and. delivery structure

operating
stable price
can

then be

established."

customers

our

other

and

"In

the

causing

meantime,
in'

very

and

this

high

construction

the

boom

country

are

demands

for

brass by

the automo¬

Gillen

the

as

other

copper

a

result

of

New

Sept.

Beaver

well

York

1
to

will

Stock

partnership.

Harris

Upham Partner

BEVERLY HILLS,

this

Exchange,

admit William E.

as

and

brass mill products.
"As

Admit

Company, 120 Broad¬
New York City, members of

way,

on

to

&

electrical

and

appliance

industries,
large users of

Gillen & Co.

users

products.

heavy de¬

mand from Europe and the United
States, the supply became inade¬
quate forcing prices up.
"In

Canada, the price of virgin
copper
shipped to Europe and

Sept.

1

Frank

admitted to

Upham
manager

El

&

L.

Calif.

Patty

Co.

Mr.

be

Pjaity is co-

Camino

Drive.

STATE AND MUNICIPAL BONDS
CORPORATE BONDS
LOCAL STOCKS

WALNUT 0316

On

of the firm's office at 137

j ESTABLISHED 18941

RHODES-HAVERTY BLDG.

—•

will

partnership in Harris,

dividend

going to earn
this year,
or
so
it seems, which make this
rapidly improving eouity not an
unworthy value at 88 paying $5
presently. Certainly those savants

of

be

equity of this

$12

time

which

some

are

"We

country

their

scrap

"We

major

get

are

and

the

esti¬

the
of

more

salesmen

the

week

some

is

of

produce

In

four-day

it

when

sources

to

secure

our

much

finding

used

to

125 of

is

above

for

continued operations on
a
part time schedule as compared to
our
regular three-shift, five-day

quality and stature.

something

to

metal

necessary

of 5.72% is not to

now

7
on

American pro¬

our

$2.50

not

as

price

low

against $1.38 for the same
1954 period. At a price of 43 with
a
$2.50 dividend, we venture the

for
ex¬

copper

much

as

36

cost

carrier, so that per share net
for the first half of this
year was

and

scrap.

to

virgin

50

as

cooper

high

the

ducers

high

as

for

brass

increased

production

of copper and brass mill

bile,

value, somewhat simi¬

paid

pound

over

43

at least the balance of the year for
normal inventories to be restored

cooper

Another

even

and

running at capacity,

sleep contentedly,

share,-

normal

resumed

mated

conditions

a

has
cents

them

that the remaining mines
be in operation within a few

good territory and more extensive
dieselization.
If
"Chessie"
can
so can

of

pears

time

33

its

were

of

This common
for

a

alloys.

Chile—for

recently reopened and it

may

cents

to

rose

urgent need of the

correspondingly

west—Canada, the

this

American

were

have

schedules

closed

gradually

metal

and

copper.

the

elsewhere

cents. Users in

be

days. However, it will take

now

as

current

selling
at
51 Vz
yielding 5.9% on the $3 dividend.

common,

a

hamper production of

may

short¬

number of reasons

a

States

Rock

Teletype: NY 1-911

are

have

United

be sneezed at in

Telephone: HAnover

"There

which

to

more

a

their

looked

a

As

pick

stronger parlay!

and

follows:

against it, as the present
4,854.120 shares are the result of a

tion

cash

49

summed

when

finds

a

Pacific

back.

couldn't

.you

the price of

theUnited

States,

source

he

bird"

Union

to

copper

dent ofthe
H. W. Steinkraus

desoite denials, would not
incredible.
There's no tradi¬

fore

"rail

and

back

ample,

affected

split,

far

Atchison

played

of

Board

age

be

travel

be

Bridgeport

Commenting

the

Atchison

body's
the

to

that

the

on

aug¬

with cash—about $40 mil¬
is
good in any¬

lion.

power

Exchange

and

Brass

by

profit¬
able subsidiary, Chanslor-Western
Oil
and
Development Co., with
large
holdings
in
oil,
lumber,
mining and real property. This
unit delivered in 1954, a $6 mil¬
lion

cut

attraction; and Northern Pacific
oily overtones. Finally, let's
this piece up by suggesting

of

pany,

highly

a

arrear

tor

Chairman

exceed

supported

diesels.
Introduction
of
diesels,
however, on certain divisions, has
rather sharply improved
earning

New York Stock

President

more

of

•

Steinkraus,

industry, Mr.
Steinkraus,
a

lar

Vilas & Hickey

W.

except
for
The present indicated

Rail

an

didn't

we

products.

brass industry

serious shortage of copper
for some time to come," Herman
a

former

year.

case

and Southern Pacific fcr dividend

situation

current net revenues which should

holder

request

"The copper and
faces

dividends,
amply

in

Shortage of Copper

copper

acutely

Progress Report and Forecast

on

why the

than any
Since 1.900 there have been steady

three years.
rate is $7,

carrying

now

enough swath, consider fa¬
vorably
Southern,
Cease
Line,

lieri

common

age

D.

end

copper

rate.

Circular C-18

supply, and

mile¬
other U. S. carrier.
runs

A.

Steinkraus, President of the Bridgeport Brass
Company, cites reasons why copper metal will be in inadequate

one,

it

2331

W.

While ranking fourth

revenues,

due

wide

in

Foresees Serious

in discussing
rails, will be heavily criticized for
starting off with Atchison, Topeka
no

W.

first

sturdy

a

merger, may present meritorious
values at present market levels.

1955 should produce all-time
high
earnings of $6.40 a share, or more,
setting the stage for either a year
end
extra, or a higher regular

A

have

Herman

on

perhaps

even

&

status, B & O 4V2s at 90 might be

many

few shares that, on
expanded dividends, a

of

dend

New York Central

79

at

in

over a

hopes

L.

terminal

Then, not to neglect the bond
investors, New Haven 4s

dedicate the next few moments to

culling

D.

4s

bond, payable sometime.

a

And

minded

the
Dow-Jones ticker, and the other
on the current
earnings' chart, we
salute the rails; and propose to
one

and

on

$45

no); liaison

or

Shore

incomes,
of

Milwaukee and St. PauL

"prudent man's" investment lists?
So

West

of

D.;

appeal to those with long life ex¬
pectancy; and for the mere sport¬
ing there are Northwestern 4y2%

& Nortwestern and Chicago,

common

on

redeemed
many
years
ahead
their stated maturity, 2010 A.

their

would

example,

Seaboard

now

in

and ferry
and
some
important
pooling of facilities between Chi¬

most

railwav

Railroad

Erie

York

expansion in the South, Southwest

finance— 2 for 1 division in 1951
(August).
debt amortization.
Most of the
We
mentioned
new
bond issues of reorganized
yield,
above.
roads had heavy sinking funds— Well the seeker of income can

Erie,

between
New

cago

have

loaded

good stock, turbine

operation;

Northwest

well

Western's coal fired gas tur¬
(Norfolk &
Western
is
a

population, and in particular the
extraordinary regional industrial

same

lith,
-

There

and

the

ance

his famous opener,

night!"

re¬

fortune)
at
Fixed debt of railways
unlike home mortgages, in

(not

the

great

almost
(with
good

except

tonight, he would only

with

were

Penelope.

about

railway service and

these

factors,
taken
to¬
gether, plus the steady growth in

as

issued

lance,

along as far as
Yes, if Gabriel Heatter

talk

bounties

new

financial

maturity.

to

have thousands of

now

quite

the hurricanes get

radio

operations, but such
accounting and ticket

device, built in to
every
railway
reorganization—
debt reduction.
During the era
ending circa 1929, railroad bonds,

and

were

appeared

in

boons to

cant

equipment)
fantastic $197 million.

ball

Among interesting railway de¬
velopments to watch are Norfolk
bine

(not

of the

side

important as all
these
material
improvements in
railroading, there is the signifi¬

year,
what with Atlantic Coast
Line and Denver and Rio Grande

the

has

service—all

But

vogue tins

for financial fission

and

predicting larger cash payout, and
mayhap a spilt up, have their
crystal
favor.

and

and

faster,
motion,

profitability, since the rusty
ceiverships of the 30's.

of welcied rails, run¬
ning a quarter of a mile between
joints.
Then, too, rail splitting,

Abraham

switches

on

We

trailer

themselves, since the in¬

new

in

bearing freight cars, Talgo
trains, Astra-Dome passenger cars,
air conditioning, and piggy back

troduction

mored

as

roller

click

'famous
by
coln, has gained a

only

about

fact

move

time

Automation

the only pia.e
where
the

in

longer,
more

controls.

Perhaps the biggest single im¬
provement in efficiency since the
early 30's, has been heavy, and on
many lines, complete dieselization.
But rolling progress does not stop

over

1954);

made

less

areas

$416
(up

managements

the rails

and

selling.

are

Cobleigh

spend

not

automatic

are

and

majors,
79%

U.

other

first half year
net
for
the

million

Ira

and

lines.

wonderful

a

clas¬
lengthened and
efficient by electronic

yards

more

Trains

account-

way

,

mmKtmm

enormously improved,

made

voluntary debt

duced fixed debt

All

sification

a

the

Look, also, at how Illinois Cen¬
tral, between 1940 and 1955, re¬
by a

attractive issues.

ticker, has, for

of

plan of Baltimore and
Ohio put into effect in 1944, plac¬
ing 50% of earnings, after inter¬
est, into a general sinking fund.

U. COBLEIGH

By IRA

result

recuction

Thursday/August 18, 1955

..

.

ATLANTA

1, GEORGIA

LONG DISTANCE 421

Volume 182

Number 5456

.

The Commercial and Financial Chronicle

..

a

Steel

The

Production

Electric

State of Trade

Food
Auto

and

Industry

=ss=

.

.

ART COLLECTING

...

and

confidence than

more

With cold

ever

in

economic way of life

our

.

.

offer analogies between the

to

and stock markets—on both

war

result of Geneva Big Four summit meeting

as

accompaniment of our bull
market is revival of the proclivity

probably slip to lowest level

record first-half, it will still be extraordinary high.

fauing into distance

One

.

Basic to this

.

advantage
with

gains

.sharp rebound to new business peak is widely anticipated for
final quarter."
That is the way the "Automotive Digest" sum¬

indoor sport is
the

that

marizes iuture conditions.

"Is

a

Steel

inventories

amount of

attention,

says

Steel producers are
steel demand

in

watching them for clues

the next several

to reduce

ways

beginning to get more than the usual
"Steel," the metalworking weekly.

are

March

in

is

and

report

a

lautornakers

con¬

began building steel inven¬
they continue to do so. One piece of

that

from

no

the

automobile

in

are

a

seasonal

Automakers

or

as a

in

long

are

extended

as

as

gone

inventory build-up is not alarming at this point, for it has
only five months and some build-up was necessary to

e

on

suppcit the increased rate of consumption.

inventory

watching for is
In

some

that

week

won't

accumulation

continue

Steel producers know

What

forever.

they're

turning point.

a

customers

many

the steel supply is so short this
drawing their material out of

are

railroad

cars or
trucks and putting it immediately into the pro¬
line, according to "The Iron Age," the national metalworking weekly. Other steel customers have less than five days
supply of steel on hand. A greater number are on hand-to-mouth

duction

basis.
That

was

the outlook this week with the

certainty that

solved

con¬

grand un¬
As fast as some
one

problem in the steel industry this week.
repairs and maintenances were taken care of, breakdowns ap¬
peared in other areas or in other plants.
The sum total of a strike, heat and mechanical breakdowns as
well as equipment failures have caused the steel industry to lose
as much as
10 to 12% in steel ingot output over the past several
This

weeks.

loss

comes

at

time

a

running 110 to 125% of capacity.
This week
tive that
were

to

when

steel

order

volume

in steel have become

so

sensi¬

Attempts

a

grams.

Heavy demand for steel and the inability of many steelmak¬

only a
Seasonal in¬
fluences, the end of vacations, and the continuation of the upward
.surge in the business picture will cause howls over delayed steel
deliveries to hit a new high, says this metal working authority.
to

their

meet

estimated

schedules

production

were

companies will face after Labor Day.

The American Iron and Steel Institute announced that the op-

eratirg rate

of steel comnanies having 96.1% of the steel-raking

92.3% of
caoacity ior the week beginning Aug. 15. 1955, equivalent to 2,capacity of the entire industry wiM be at an average of
tons

228.000

ingots

of

and

for

steel

castings

compared

as

with

89.4% (revised) and 2,157,000 tons a week ago.
for the

The industry's ingot production rate
based

on

For

duction

an

the

annual capacity of 125.828,310
like

week

2,195,000

a

tons. A

month

tons

weeks in

as

1955 is

of Jan. I, 1955.

91% and pro¬
the actual weekly production

ago

ago

year

Wilfred

A.

has been

investing

better way

a

money,"

citing

a

since

Then visting the salon

oSf aC

tne company
the
cherR
company oi a fat-cat
lat cat client
we were soon
handed the gospel

of

finance.

Fondling one ot his
sharply
"rising"
Braques,

most

"am«nfexample
"xampfe

5S
tne greatest

of
oi

tine

a

HadlKUmlf*
' ' • J* you
had bought \™estme7lt
this ten years ago you
would easily have made

1,000% on

investment." I was circumspect enough (particularly in the

your

of Madame Prospect)

presence

to

life then and there. With his glam-

ners," the conversation resembled
the

the rate

was

on

page

oil

wildcat

a

or

sensational stock market

a

him

form

I

itching

was

that

cite

to

tional

price

tures,

truthful though

concept based

on

of his

they

pic¬

quantitative
represented
a
the

of

pre

as

superfluous

Motivations

conclusions

which

the

about

should guide

picture buyer will be offered
Meanwhile let us glance

below.

motivations

at

Railroad Securities

Aesthetic
A

Guaranteed and

prompting

Consumer

Special Stocks

by Journal

L'Amateur

DArt

munity

Paris

to

the

art

de

com¬

Object of Art?"

Pure

love

Desire to

Portrait

'

and

Century who

Paris

nf

bought

were

up

peniuses at fhe tUrn °,f
who

but

tury

•

LANCASTER

7
other

tives

is

interesting

in

the
-

of hindsight

A

picture by

that

177.nod

franr'o

64 0q0

in

;n

i«qn

onlv

hut

.

^According

York

to

"Tribune,"

,,

A

account

news

Feb.

y

Processes

Chief

16,

sureiv

call

some

of the

suiely some ot the

'

of

among

1953' and -Ph-is

^hisy^' $7°°

we

"investor."

the

two

markets—

securities and art—are analogous,

by J. J. Heuni brought

.....

jn any everd

brought

'

1910>

A picture

whether

or

fnr

without benefit

Blue Chip-ism in Both Areas

the 19th Century

Messomier

artist

-

him

completely by the wayside.
Frpnph

is

+v,o

+

in

lesser

these is the growing

on Blue Chip-ism. While

names

constantly

become

for
New

n

1922.

^

..

,

continued on page 46

Why We Continue to Point to

SOUTHERN RAILWAY COMPANY
For Potential Growth...
In

an

industry that is rapidly regaining investor

eon-

fidence, Southern Railway eornmon stock, in the opinion
of

our

Research
on

Department, stands
which

we

out.
base this conclusion

are

dis¬

thorough Analysis of Southern
Railway Company. For your copy of (his new, l()-page
booklet—one of many such publications of special in¬
terest
which Shearson, Hammill continually makes
available to investors, clip and mail this coupon today.
our

two

Members New York Slock

the

Co.

Organization

Exchange and olher

lecding Stock and Commodity Exchanges

HARTFORD
9LewisSt.

Experience
Research

Avenue—VAnderbih 6-2500

MONTREAL

BUFFALO

200 St. JamesW.

Liberty Bank Bldg.

Shearson,

Imagination

hammill & Co.

Gentlemen: Please send

6

Southern

4
that

Name,

the

mo¬

combined

speculating

in

s

Founded in 1902

14 Wall Street, New York 5

two

in¬

categories
total

comprise one-third of the
of buyers.
Probably there
overlaps

—

ctrppt

nnp

the buyer who

r

6

purpose

obligation

vesting
CITY

as

fallen

have

since

19th

the

17

with the current style

Patron's

It




17

Snobbism: the desire to keep
up

I nderwriters & Distributors

ATLANTIC

19

of Art

embellish one's life

sentimental
'l

•

of

522 Fifth

Gift-making

PHILADELPHIA

SCRANTON

c^nnl

thp

14 Wall Street—REctor 2-2400

An

INCORPORATED

ALLENTOYYN

Dufys, Renoirs, Degas
_

_f

NEW YORK

Speculation

•

ses,

San Marino
collection. Old Mas- art, like oil and uranium prospectt
alsQ 5ecome overpriced. inp.
i<5 nnt
And
we
can
recall the artists
ng is not a one-way street for

"What Is Your Purpose in Buying

Obligations

STROUD & COMPANY

PITTSBURGH

for the right to hang
Qainskorough's Blue Boy in his

yie'ded the fol¬
lowing interesting information:
of

in-

not

are

AmountofLaufrecs
Gaugins, Van Goghs,
Monets, Pissaros, Bracques, Matis-

$850>CO0*

Shearson, Hammill

Survey

Investing, to protect capital- 24%

•

casualties

the

this

questionnaire, circulated Gal-

Iud-Poll-like

Mortgage Bonds

SEW YORK

These
of

fall

avocation.

Equipment Trust Certificates

Serial

the

The facts

fictitious.

state of mind
the

be Purchased tor

pounds,

—,

tended to imply that pictures are
mighty has been the English por- a mlnus proposition, or unduly to
traitists' school of the late 18th -tetress the dangers. They are cited
Century: Reynolds, Romney, -merely to remind us that there
in

term

over-enthusiasm at¬

which
are

Some

"1° f'"°w ,can

not available.

cussed in detail in

34

aCade^

course,

versus

they

J

(a

is not to detract
from
the
desirability of buying
and owning art, but to plead for
tributes

$3,500

mere

a

sale. 15 years after.

a

7s7e? heyday of^Tyearstgo brought
declines as g™. 2-°n°° 1° 3.'000 P™"ds, afd

investment.

as

'Twenties, brought
at

were,

income and har¬

flagrant prostitution

realism

of the
booming 1920's:—Whistler, Zorn,
Reinhardt,
Bone,
Heinzelman.
Typically, one collection of these
which had cost $25,000 in the
etchers

in¬

to

some

elements)

This, of

erstwhile

the

are

popular

sensa¬

investment

of

boring at least
value

the

advances

function

a

as

there

at best hindsight pick¬

venture,
ing of

Buyers'

Continued

of

talk

sales

And

red-hot

art

sensaUonal

was

drastic

the

are offsets to the sensational rises
be remembered that our railroad 0f the Cezannes, the Soutines,

.Jhis
article
has writer
been brewingthe
in
mind
of the

in
in

value

of

know

we

as

&had Lawrence, Hoffner. And its must

pictures that
enjoyed great appreciation.
the

the

advances, with the infUcsevere
loss where hind-

Foremost

May

host°of

performer.

taste of Afcbat

sight

are

years.

fea-

motivating

is

fast shitt on deliveries in
interference with manufacturing pro¬

mills to make

serious

forestall

that

of

never

inflation-hedge

™P°rtance of quoting prices

customer relations

by many

as

tion

their

whole

with

plete

weight in gold.
There

the

well

"Paintings

from

available

SghThTr££fof

,

they rival similar conditions in the late '40s.

made

order

ers

nounce

without the

are

presumably

pro¬

to

groups

point is

fiedVGbyrSa losT ^capital

of the

was one

it
U

ditions will get worse before they get better.
Production
difficulties were
whirling into

of

paintings, Ga¬

war

of the country

areas

ture

briel Coulages

first

"spec-

short-term

crucial

element

And

the

in

Century

curator

a

of

are.

T;

Back

The

Pictures
widely
$350 in the

quoted

were

decline
from
the
inordinately
peaks which have hit the works
of the formerly sensational realist, Georgia O'Keefe.

capital

holding securities.;

vestment?"

18th

both

income

in¬

an

worth

continue to take in all

deliveries remain

as

they

production,

setbacks in steel orders.

and other consumers will
as

industry—the

biggest
short material. Although

downturn

important cancellations

the steel offered them

they

studying

consumers

single user—that steel is not regarded

making

are

■

"Steel" estimates that
tories

months, and tney

inventory build-up during periods of high

sumption.

evidence

the outlook for

on

question,
art

the

and

amassing

relatively

via

transactions.

se¬

proposition.

any

Utrillo

And

tions; but it may be assumed that
the "investors" were concerned
primarily
with
the
inflationhedge

discretionary

as
$550, $3,8C0, and
single year 1954.

—

ulators

Atlantic.

the

oi

art

sides

involves

prove

INVESTMENT,
SPECULATION, OR WHAT?

but by any standard other than

.

5===

of

Failures

rather than on

picture,

lectivity, leading to the chronic
danger of- statistics being able to

Production

Business

"General business conditions will

By A. WILFRED MAY

Index

Price

J
of year this month and next

ture
..

Trade

Commodity Price Index

single

different pictures, of a particular
artist. Citing more than one pic¬

Observations.

Output

Carloadings
Retail

5

(669)

were

classifica-

Address

me

without

Railway.

obligation

your

Special Report

on

(-j

i
The Commercial and Financial Chronicle

(670)

<>

Thursday, August 18, 1955

.

.

.

•

/

.

? ■

-

•

-

•

-

•

;

•

•

Railroad Executives Discuss Outlook for the Industry

however, held the increase in total operating revenue to

on the Cabinet Report on Trans¬
portation Policy and Organization is encouraging.
The
railroads are confident that Congress will find the report
abundantly fair in its recommendations for correcting
transportation
conditions
arid
will
enact
necessary

4.1%.

changes in the basic law that

months of 1955 than in the same period

in the first five

decline

The

1954.

«('

Rate of return

and

passenger

other

revenue,

property investment for the Class I

on

improved

railroads

in

for the

3.87%

to

ended

year

tation

and

the year

effect

to

ended with May, 1953. Net income also was
up to the 1953 levels, even though it was 91%
above that period in 1954.
quite

intercity motor carriers of property reported
of
18.8%
in operating revenues for the
quarter of this year, compared with jthe same
period in 1954, while total expenses were 11% higher.
The revenue figures reflected an increase of 11.8% in
the intercity tonnage transported by these carriers, and
an increase of 14.5% in the total vehicle-miles operated.
Class I

increase

an

first

Class I

showed
a decline of 1.7% in revenues in the first quarter of 1955
below the same quarter of 1954, but their expenses de¬
clined 3.4%. As a result, their net deficit lor the quarterwas
$1,441,000, compared with a net deficit of $2,769,in

000

intercity motor carriers of

the

Water

carriers and

oil

both more
business and greater revenues. Freight forwarders, how¬
ever, reported
a substantial
decline in net income in
the

of

face

business, because their
their payments to carriers increased

and

more

and the

Both the railroad

their

creased

substantially.

trucking industries have in¬

equipment so as. to im¬
prove their capacity to handle the greater volumes of
traffic. The long-range aspect of some of this buying
shows

buying

carriers

the

will

to be

that

condi¬

business

rolling

in

investment

stock.

railroads

rapid tax amor¬
freight cars, but
during the first 25 days of July, shortly before suspen¬
sion of the ciuick write-off program by the Office of
tization

authority

requested

of less

total

a

on

than

for

12,000

Defense Mobilization, the railroads sought such

The

author¬

45,000 freight cars.

ity for nearly

railroads

approxi¬
mately 35,000
new
freight cars on order, and have
greatly accelerated car repair work all over the country
so as to put back into service an increasing number
of
cars which have been awaiting major repairs.
Statistics

currently

report

they

have

factory sales of new trucks of all types

on

«how that 535,494 new trucks were sold during the first
six

months

this

of

period last

same

the

compared with 468.586
and the greatest increase

year,

year,

in

the
was in

larger vehicle category.
ARTHUR

t

|

'

f

1

ATKINSON

K.

bring

be

in

ment

operating

revenues is not
carloadings because of
downward rate adjustments in effect

great

as

selected

commodities.

lor the-first six months

only about 5%
The

year.

the

first

six

months

of

the

top

absorb

the

wage

1956.

BROWN

believe

that

industrial

activity

As

will

result, railway traffic and

a

balance of

1955

are

months of this
of

enues

something
levels.

this

gross

carriers

4%

above

trend

will

for

Class

I

proximate $10 billion,
between

6V2

about 6%

Net

and

in

under

income

above

the

Results

for

the

five

reached

is

1953's

1955

revenues

before

about

Federal

$11,500,000

over

up

Arthur

months

4.46%?.

income

I

representing

record

of

made

The

at

greater

a

competitive

continue

to

be

a

difficulties of

K.

Atkinson

Policy

and

ments

into

these

solely by railway managers.
of

lines

the

(presenting

a

car-

1954

are

an

expected

increase

of

to

be

nearly

improvement in railroad earnings is largely at¬
stepped up production in many industries,
however, considerable credit must be given to more
possible

ment and

facilities which have
cost of

a

years.

more

been

by

modern

added

equip¬

by the rail¬

than $10 V2 billion during the past

The government's recent
suspension of the issuance
of tax amortization certificates will
surely require cur¬
tailment of railroad programs for modernization if
it is
not restored
promptly.
a

Subcommittee of the House

Interstate and Foreign Commerce Committee
will begin




brought

other

formerly

were

ticularly

on

of

ele¬

less
the

companies to

effort

a

ment of

the

in

us

portation:

<**■

Committee

in

investment

of

service

the

must realize

the

railway

industry and

competitive
being

If

selling

our

legislation

a

and

CYRUS

do

emanating

our

outlook

the

and

long

the

as

tools

our

revenue

billion

1954

and

V

and

a

production

of

in

we

new

we

Otherwise

to

managers

had
ties.

1954,

a

determined

to

the

proposed

transport

the

opposition,

or

that

point,

to increase the

and

or

The

of

the

could wonder what

is

the

a

76 new industries

33%

last

than

better

and facili¬

favorable effect

on

expenses.

ments

Our

with working capital at $57.1
'•

6

industry generally is enjoying the fruits of
booming economy.

revitalization

apparent

legisla¬

in

the

that

is

railroads.

aggressively

facing

Particularly encouraging

becoming
Not

only

today's

and

more

are

rail

with

problem

more

manage¬
new

imagination and vigor, but there is also new hope that
many
may

trucking

of

today's

outmoded

transportation

regulations

be revised to give the rails a fairer break in meet¬

ing their competition.
tee

it would

year

C&O,

all-time high for C&O.

an

rail

the nation's

legislation.

one

industry is en¬

made for cost-reducing equipment

rail¬

(2) failure to esti¬

determination

Glass
volume.

Improvements in operating and maintenance prac¬

million,

(3) failure to estimate the degree of need

for the corrective

At

railroad apathy,

a

strength

high

go

demise of the Weeks recommendations will be
attributed

mate

in

are

benefiting from the heavy expenditures that

is

been

tices also have had

If this is not done, it can be assumed that eventual

primarily to (1)

the

on

financial position is strong,

ignore

continue to slowly

must formulate

located

been

C&O

1948

should become instrumental
tools.

indicates

year

year's seven months' results.

industry.in proportions of unity equal to that of the

trucking opposition
tion.

billion

the

domestic coal

So far this

business.

Railway
way

41

chemicals

use

decrease in railway revenue

this pressing need means that
of

from

of

Cyrus S. Eaton

have

had

billion in 1948 to 549 billion in

it must be obvious that
the

miles

passenger

in

ton miles from 638

out

have

command

balance

The

of

utilization factors which produced a decline in rail¬

way

in

at

EATON

joying a vigorous demand, with steel
production at capacity levels and the
electric utility industry, coal's largest
customer, continually increasing its
requirements.
Through
favorable
plant locations of the automobile in¬
dustry, C&O benefits substantially
from its high production.
The ex¬
port coal picture indicates a con¬
tinued heavy movement. Britain and
Western European countries are im¬
porting large tonnages cf U. S. coal.
C&O is sharing substantially in this
movement, with export coal revenues
double the same period a year ago.

Weeks

economy

S.

the

and

defense, they must look elsewhere—quickly and effec¬
tively.
As

a

Board, Chesapeake and Ohio

for

each

some

the

such

will probably be reached in 1955.
Merchandise traffic continues at a brisk level.

not

from

in the interests of

in

strong contributing factor

July in C&O history has just been recorded,

these

more

recapture of

a

equipment,

special

investment

The

Railway Co.
The best

strengthening of the

they

establish¬

basic commodity—SERVICE.

own

."

more

own com¬

the

service it will, of

a

of

purchase

could, however, be

Chairman of the

accomplish
convincing Americans that

power.

successful in

prooosed

a

Our

to

connecting lines concur

our

etc.

ramps,

of American trans¬
,

If

feasibility of such

opera¬

places

even

trucking

be necessary that we make a considerable capi¬

installation

To those ol
us
in railway transportation who face
only increased losses of traffic to (1) improving airline
service, and (2) the unrestricted growth of unregulated

loosely regulated contract and private truck

an

various

"Piggy-back" service between stations along our

course,

in

the

that

make

or

the

consideration

serious

line and New York City.

tal

traffic

attract

to

feel

I

improve the de¬

either

must

"Piggy-back" operation.

giving

is

distances.

short

traffic.

carload

their present LCL

on

pany

than

country

strenuous

more

relatively

for

accustomed to such service, par¬

gen¬

the end result of sound transport policies.

users

economy

being accommodated by overnight

now

Now that remedial

the report of the Weeks
challenges squarely before the

national

re¬

estab¬

the railroads are deprived of
traffic.
Certain low-inventory

case,

are

and

lost

consistent with

mushrooming

a

transoortation

that new peaks

This program of modernization is completely

changing the old procedures of maintaining the roadbed,
laying ties and rail, of purchasing and storing sup¬
plies and repairing and renewing rolling stock. Mech¬
anization is not limited to the Operating Department,
however, as great changes are also being accomplished
in accounting.

of

The announcement that

has
that

of

either

culties

managers

minima

in the utilization of many forms of trans¬

steamship interests, have produced argu¬
ments designed to prove that the alleged railway diffi¬
are

general public the benefit of

and

much-needed

railroads

intercoastal

The

roads at

rates

With regard to rail traffic, I believe that the

In

gratifying proportions have been
so-called Weeks Report, the truck
united front), along with barge and

some

by

the

offer

and

demands

with

the

erated

Reoort is necessary

5

tributable to

made

the past.

change in this situation, particularly since the re¬
port of the Presidential Advisory Committee on Trans¬
discussions

Gardner A. Caverly

the authority
involving general rate structures,

with

matters

on

believe that the rail carriers themselves should go>

but I

livery
increase

43%

a

any

1954.

operation

Brown

w.

warren

than in

Organization

redress

The public has become

railway industry
major topic of conversation in trans¬
There seems to be little prospect for

portation circles.

public

shipping
of

highway

million.

pace

Manage¬

constructive

splution of these prob¬

commodities

a

1954 and about a 10% jump versus 1953. There are
encouraging signs within the industry represented by
increasing capital expenditures, and the attachment of
heavy emphasis to the application of improved methods
and procedures.
Technological advancements continue
be

something

I fully recognize that our present
legislative
processes
provide
the

handling

over

to

do

the

tion.

gross.

1954,

$329

Railroad

of

part

to

portation.

expect that for the entire year net
will approximate $950 million,

to 29

efficient

the

high freight rates on certain commodities do either one
of two things—cause rail traffic to be diverted to other
forms of transportation, or stifle incentive for produc¬

ap¬

income

Wabash net earnings for
taxes

multiple
transportation
problems, but a fixed determination

have resulted

running about 92%

estimated

an

this- by

closely parallel the Class I Railroad average with
loadings 10% better than for the same period in
with

customers',

legal procedure and reasonable profit.

unsatisfactory
year
for
transportation. In the first
months
of
1955, net income

its

Railroad

seven

does

The

railroad

American

revenue,

Wabash

ice"

lished

1954, but

over

achievements

Railroad

of
important
factor affecting net income.

Company for the first

their ability to sell it. "Serv¬
not, in my
estimation,
merely, refer to the time of cars in
transit. It is, rather, an all-embrac¬
ing term and includes not only a
sympathetic
understanding of our
upon

as¬

somewhere

or

7%

their

of

predicated

1954
to

will

is

carload

continue

roads

sell

measure

duced

up

and, perhaps, improve. For the year
as
a
whole, I anticipate that gross
revenues

way

more

(or ' failure)

success

further

rev¬

are

reasonable

seems

that

year,

I

over

It

sume

Class

all

earnings prospects for
encouraging.
In the first

very

to

The

endeavor to improve

an

of thinking, the railroads
than ever before, have just
and .that is

my

lems.

continue at
present (or higher) levels lor at least another 16 months.

five

To
now

commodity

toward

Louisville

going all out in

country

SERVICE.

on

W.

day how serious is the need for

the

as

this

of

is

effort.

What do you want transportation to do for you?
(2) Will you give transportation the chance to do it
for you?

adjustments will

increase

remains

course,

10

docket for Congressional

the

of

Railway Company
I

Whether rising costs of material and

supplies and

sales

Corporation

Railway

to 18 months the management of

year

(1)

should

continue, as I see it,
during the balance of this year and

17%

given

economy

tors,

therefore

are

improved volume of railroad

traffic

and

be

must

President, Chicago, Indianapolis &

and

Revenues

last

over

-

this railroad
our

CAVERLY

A.

Rutland

During the next

ment

sponsored

The generally improved level of industrial activity is
being reflected in the railroad business with freight
carloadings of the Class I carriers for the first seven
months of this year running better than 9.9% over the
same period last year.
The improve¬

lor

policy

equality

whose

at

measures

President, Wabash Railroad Company

on

day has long since
monopoly in transpor¬

national

new

a

WARREN

port

^

as

the
a

generally

During the first six months of this .year, for example,
the

should

in the foreseeable future

good

additional

the

warrant

new

confident

are

tions will continue
and

of

that

consideration.

expenses

own

obvious

so

that

nation

a

the

pipe lines reported

be

of opportunity to all carriers.
has prospered on free en¬
terprise the railroad network cannot properly serve
the public need while being continually fenced in by.
unnecessary restrictions and controls.
Legislation pat¬
terned after the recommendations in the Cabinet Report
In

passengers

quarter last year1.

same

President,

one

should

It

passed 'when the railroads had

with May, 1954,

not

clearly for the national

are

welfare.

with

1955, as compared with 3.48% in the year ended
but it was below the 4.41% recorded for

May,

GARDNER

hearings in September

Continued from first page

Report

The President's Cabinet Commit¬

recognized

the

need

for

modification

of

existing regulations and recommended certain revisions

take

Continued

competitive zeal of the railway industry.

I

on

page

18

Volume 182

Number 5456

.

Chronicle

The Commercial and Financial

..

to be fixed by the .tax paying private utilities whose
that the project would property TVA had acquired,
be "self supporting and self liqui- There was no thought of
paying
dating" or at the lowest possible local taxes on property which
rates which would promote wide¬

Rates

Unsound Aspects of Federal
Government Power Marketing

spread

of the

Task

Group

on

Power

with

and in this

of the electric

^

the latter half of

case

nullified by
administrative interpretation.
this requirement was

projects of the Federal Government, and criticizes the

power

,

.

principles

~

...

Mr. Jirgal describes the methods of marketing

.

,

amount consistent

business

sound

of

be fixed at the

...

.

lowest possible

Hoover Commission Task Force

statute,
1944,

one

Act

Control

the rates to

were

Chairman

only

In

use.

Flood

tne

By JOHN JIRGAL*

i

were

t

policies provided by the Congressional Acts.

supplying

less than cost and at taxpayers'

power at

and

uneconomic

Federal power

only result in

can

for the

pay

preference in selling

it

is

obvious

activities

expense

large investment

that

Federal

necessary

power

power

In

on

facilities.

which are a very minor
portion of the total cost, were provided for uniformly in those sta-

Scores

expenses,

plus product for what it was fairly worth. In this way, the earnings from power sales would have

in this large scale commercial un-

thus relieve

dertaking nearly

ers

as mucht money
security holders have invested

in

the

American

Telegraph

Company

twice

from

much

Telephone

to

General

and

system
times

as

invested

in

several

they

as

and

have

Motors

Corporation,
Standard
Oil Company of New
Jersey, the DuPont chemical un¬
dertaking
or
the
Pennsylvania
—

-

—

-

Railroad.

also

be

times

several

that of any of the larger

privately

this

Is

Federal

ciently?

necessary?

Is

of this business

any

non-essential

a

business

power

economically and effi¬
Is all of this business

run

activity competi¬

to this concept
were adopted, however, and
were
given effect either by way of exrectly

contrary

pressed

Economy and Efficiency
and

take

or

interpretation,
*

They were:
That the

(1)
sold

the

at

which

was to be
possible rate
promote its
most
power

lowest

would

wide-spread

use,

and

generally.
No

up

were

where

tutes

rate

established.

In

standards

some

cases,

were

it was

specified that in addition amortithe

zation

of

vided

for,

made

of

the

cases

terest

pro-

mention

was

no

interest

to

Only in the

competitive rates to
the states of Arizona and Nevada
and

Administration

tempt been made by
.

....

in

were

provided in any of the
statutory directions

The

very

general and indefinite.

the

Colorado

has
any
,,

an

and the

given

the'

,

certain

payments

amounts

to

change

in

the

rate

for

but

they

in

are

comparable with what

utility
owned

no

* /

and

incurred

by

charges
governmental
agencies for the benefit of these

power

In

supervisory

other

way

would pay
operated the

of

none

if it

the

Than

made

taxes.

Only in the case of TVA
a separate statutory pro¬

is

for

Federal

a

large Federal

very

power

the

busi¬

vision

the

for

payment of

a

fiscal

of

dollars, with Congress
acting as a Board of Di-

-

,

ucts of that business

TVA

In

the

than

all

of

the

it

always

is

Federal

and

less than

Their concept of cost

power

amount

could

ness,

seems

should sell its products for
they are fairly worth.

than

This is not

a

new

Government

idea.

Continued

to

The Fed¬

itself
on

economy

efficiency.

As

to
engineering work
and
physical operations it appeared to
our
Group that
these were
in
keeping with the best practices

followed

by the

generally.

This announcement is neither

\

^

an

offer to sell nor a solicitation of an offer to buy any of these Debentures,

The offer is made only by the Prospectus,

'

V

electric industry

We

impressed
with the competence of the pres¬
field

ent

which

were

supervisory

$200,000,000

forces with

in contact.

came

we

'

.

.

But

sound

neering

and

erations

are

engi¬
phvsical op¬
small part of

only

a

overall economy and
any

signed

plant,

ated, will

competently

if

the

-U

■

•

is

not

Dated

can¬

or

Corporation

Twenty-Year 3Vs% Debentures Due 1975

oper¬

it gener¬

power

transmits

and

not be sold

General Motors Acceptance

uneconomical and

prove

inefficient
ates

efficiency in
A well de¬

business.

power

.

construction,
proper

September 1, 1055

Due September 1, 1075

J

at

prices which cover
the full costs of operation includ¬
ing a fair return on the invest¬

Dote rest

payable March 1 and September 1

ment.

Most Federally generated power

is marketed by the Department of
Interior
through four agencies:
The

Bureau

of

erated

the

at

Price

Reclamation,

which disposes of the

98Vi%and Accrued Interest
•V

^

power gen¬

HooVer-Parker-Da-

vis

dams, at the Central Valley
project in California and at a

number

of

isolated

the

irrigation
the

and

more

with

connected

projects;

ville Power
sells

smaller

plants

The

Bonne¬

Administration, which

Columbia

River

Copies of the Prospectus may be obtained from only such of the undersigned as may legally
these Debentures in compliance with the securities laws of the respective States.

offer

basin

output; and the Southeastern and
Southwestern

Power

Administra¬

tions which market the generation
certain

of

connection

power

plants

with

flood

the

projects in

its

own

As

portions

States.

Federal
were

of

and
the

DILLON, READ & CO. INC.

directly.

engineers,
fact

MORGAN STANLEY & CO.

THE FIRST BOSTON CORPORA TION

you

that

are

familiar
of

most

generating

power

constructed

as a

plants

part of mul¬

projects, the pri¬
object, either expressed or

implied, being to improve naviga¬
tion, prevent floods
or
provide
irirgation,
these.

be

LOEB & CO.

BLYTH &

CO., INC.

DREXEL &

EASTMAN, DILLON & CO.

CO.

these

GLORE, FORGAN & CO.

GOLDMAN, SACHS & CO.

IIARRIM AN RIPLEY & CO.
Incorporated

tiple-purpose
mary

K

The TVA markets

power

the

with

in

control

Southeastern

Southwestern
United

built

or some

combination of

KIDDER, PEABODY & CO.

LAZARD FRERES & CO.

MERRILL LYNCH, PIERCE, FENNER &

BEANE

LEHMAN BROTHERS

SALOMON BROS. & HUTZLER

Power development was to

incidental

jectives.

these

to

Since

main

ob¬

the greater share

SMITH, BARNEY & CO.

STONE & WEBSTER SECURITIES

CORPORATION

the cost of the other phases of

of

these projects
be

were considered to
non-reimbursible,
it
would
logical to have sold this sur-

seem

*From
the

an

address

American

Convention,

by M*\ Jirpal before

Society

of

Civil

St. Louis, Mo.




Engineers

WHITE, WELD & CO.

UNION SECURITIES CORPORATION
August 17, 1955.

'

to

ernment, if it engages in any busi¬

it

eral

power

it gener¬

power

Personally, I have never been,
see why the Federal Gov¬

therefore, have found it easy to
adopt this low-rate philsopohy.

Federal

find

able to

less

various

the

$400 million a year.

easy

worth

we

change, when presently contem¬
plated projects are completed, this
annual subsidy to consumers of

see¬

charged
costs in¬

The
agencies,

formerly received from

that

million to $130 mil¬
lion less than it was really worth.
Unless
present
rate
policies

actually costs to produce it.

payment

is

ated for $110

in any busi¬
ness—and popular with the cus¬
tomers—to sell a product for less

of local
taxes
was
protect
designed
to
local
governments from loss of
revenues

even

where

operate,

ernment sold the

—

in their production.

is

It

or

that the prices

fully

cover

curred

cer¬

this

Federal
that in
1953, for example, the gov¬

country

systems

involving the investment of

Hshing a definite policy as to the
price to be charged for the prod¬

there

all

it is fairly worth. Using fair pow¬
er
values in the various areas of

•

have had up to now

we

,

income

vision

of

result

I

Cost

Business

billions

statutes dealing

_

Federal Power Sold at Less

The

ing to it

rate-making is specific pro¬

billion.

$1

nearly

a

same

.

in effect

systems.

is

_

3% rate, would call for
interest payments of up¬
wards of $30 million.

to include m expenses the admin-..rectors without, however, estabistrative

paid, it need not be

Federal power is sold at less than

ness,

.

under

A Very Large Federal Power

So what
is

if,

Similarly,

investment

property,
.

Under this

private

a

company

and

actual

though its present net power

even

formula.

These "in lieu" payments can be This, at
considered as a partial offset to annual
taxes,

an

for instance, pay-

recognized in the accounts. The
TVA, for instance, pays only a
*
A
1
•
relatively
nominal
amount of ;in¬
terest—$679,439 in fiscal 1954—-

sum

compensate them

involving

as

is not actually

"in

lump

of

statutory provision, interest

some

fund

specified

of

item

any

provided for

fuel payments.

or

purposes.

Dam

einSuWere
lowered by statute
1940 these states

lieu"

at¬

agency

River

(a Federal fund) and when

were

tain amount in lieu of local taxes.

precise standards for fixing

to

Fund

or

outlay,

t

concept, the payment of taxes not
being specifically provided for by
statute is not recognized either for
rate making or annual accounting

appor-

of power at

of the Bonneville

case

roll

Hoover Dam

case

true, i.e., in¬

be provided for but
was
not mentioned.

cash

includes

it

snecificallv

by statute

tioned the profit from the sales

other

in

and

reverse was

amortization

Power

investment be

but

was

with

That preference in the dis¬
position of the power was to be
given to states, municipalities, ru¬
ral cooperatives and public bodies,

statutes.

me

provision

statutory

administrative

rates

tive with private enterprise?

First, let

policies di-

(2)

owned electric systems.

being

Federal

main

-

The Federal investment

then

will

-

Federal taxpay-

of some part of their burden,

Two

elements were omitted.
operating and maintenance

Only

reduced, to the maximum extent,
the cost of the entire project and

as

standards for

set up cost

to

attempt was

portant

the

to local districts.

the

an

fixing rates but in all of them im¬

big business.
Actually the Federal taxpayers will
shortly after 1960 have invested
are

statutes

some

made

is

constantly expanding

a

business with constantly increasing calls

taxpayer for funds to

In view of the

Says

the

that

expense

builtoforthe
would build.

+u

In

project the original statute

•

Federal

be

agencies so

(671)

adopted

page

30

(672)

The Commercial and Financial Chronicle

Empire

Petroleum

Co.

Inc.—Data—Julius

Exchange Place, Jersey City 2, N. J.

Dealer-Broker Investment

Foremost

understood

that

the

send interested

to

firms

mentioned

will

be

instance,

Thirty

Denver

Company—Bulletin

Dynamics

Corporation—Report—Thomson
Wall Street, New York 5, N. Y.

non, 11

pleased

Great

parties the following literature:

H.

120

Review—Now

booklet—Harris, Upham

Gull

&

American Life Underwriters Inc.—Memorandum—Wm.
Tegtmeyer & Co., 39 South La Salle Street, Chicago 3,

Atomic Reactor Diagram in four
colors with portfolio informa¬
tion Gn Atomic Fund as of
June 30, 1955—Atomic
Develop¬

Securities Co., Inc., 1033 Thirtieth
Street, N. W., Wash¬
ington 7, D. C.

Bank

New York Central

Edition—Information on 34 major banks
three bank
holding companies with statistical compari¬
Booklet C-100

—

—

The

First

Broadway, New York 5, N. Y.
of Diamond Alkali

Boston

C-18—Vilas &

an analysis
discussion of New York

a

log

Manuscripts—Booklet CN describes services for publish¬
ing, promoting and distributing books with
particular em¬
business and financial
topics—Vantage Press,

on

120 West 31st

Canadian
ties

Market—Newling & Co., 65 West

Riverside
Office

/

memorandum

a

Gas

an analysis
analysis of Oklahoma

an

Southern

Averages and

Trade

common

Discusses

—

Profit

for

Trend

Industries

In

—

current

Acme Steel

*

Witt

Conklin

Inc.—Memorandum—Roman
Boulevard, Ft. Lauderdale, Fla.

is

a

Industries,

Inc.

—

is

What

is

it

the

ma,rket?

Is it

Should

not?

now?

truth

&

&

—

Sons

of

&

"Gleanings"—Francis

I.

Also in

du

the

—

W.

or

listed

Pont
same

&

current

Co.,

issue

is

In

the

1
a

Wall
list of

current

Railroads, Motion

Pictures, and Office Equipment
Industry with lists of Liberal
Vielders and companies with
only common shares
outstanding.

paid

it, and to have

12

2400

ask me if this
buy stocks, I
reply that now is the time to do
both; in other words, this is a
to

you

sell

time to switch.

or

Take your profits

the popular "blue caips," which

on

yielding only 47c. Invest

are

one

other

above.

half

bank and

W.

Babson

for
its

in

the

market

true

that

"splits," mergers, etc., is near
high. To be specific,
are

1,500

at

now

450 compared with 350
381 in the Fall of

a

aboih

year ago,

1929; and 41 at

on

find

Average
it

as

then

going

on

high

think

that

the rocks

prosperous

does

will

surely

Don't

a

begins

days

are

slide

someday.
business

and

that

over.

is

our

Just

as

Industrial Stock Average
now give you more cus¬

tomers and profits, so your busi¬

continue good later when
Thirty Stocks slump. Potect your inventories, keep your
people employed, and
continue
your advertising, whatever these
ness can

these

an

One

only

unfair

are

these Thirty Stocks

measure

of

the

entire

of
these "Thirty" is important.
market,

but

an

analysis

even

For

Member

today by buy¬

get 6%

can

ing good chain-store stocks. Evjery
I

invest

variety

stores),
stocks

into

one

and

note

some

chains

If

selling.

&

cent

price

the

you

want to

just

"Dime"

these

the

10

"why,"

reason

of

10,000

in

money

(5

whatever

at

are

the

know

go

stores

useful

items

which they have at sale

for "cash

and

no

They have

carry."

accounts,

no

delivery

credit

and

costs,

they sell good merchandise at low
prices. The stores fear neither in¬
flation

Stocks do.

Most Gains in Very Few Stocks
Not

someday.

come

not

Thirty

savings

Likes Merchandising Stocks

stocks

off

answer

list, after
adjustments

stocks

all

the New York

will

to

I

local

your

wait for the big decline

But

column

all-time

these 30

averaging

1932.

to

this

1

of

low

dustrial

trial Stocks. It
Roger

all-time

dividend payers)
Deposit
the

(mostly

mentioned

this

the

depression

nor

tribution.

and

have

of geographical

security

When

they

do

dis¬
more

advertising, they will make

even

They set local

mer¬

more

money.

chants

example

an

DEPENDABLE MARKETS

of efficiency.

EMPIRE

PETROLEUM CO. Inc.

N.A.S.D.

(a

Broker and Dealer
Material and Consultation

seven
a

Colorado Corporation)

years

comparative statement—

story of SUCCESS & GROWTH

v

In formation

by

your

broker

...

or

Japanese Storks and Bonds

& Co.

without

Julius Maier Co.. Inc.

obligation

Security Dealers Association

Trinity Place, New York 6, N. Y.




time

a

(Co., £td.

NY
74

estate of sound

an

Hence, when

is

on

Y.

I

years.

years.

which

judged by
t h e
Average
Daily Price of
Thirty Indus¬

Inquiries invited

Members: N.

50

earning 6% will double in

money

the

stock

Republic Natural Gas

Troster, Singer

for

dividend payers of honestly oper¬
ated companies.
Remember that

week

are

nately,

Colorado Interstate Gas

2-

dividends

forecast that you would be better
off to forget speculating for prof¬

this In¬

now?

iltmnira securities

Western Natural Gas

"investment

were

Some of these have

member the above, when

be

this week.

Pizzini

Analysis in

companies with small share
capitalization.
issue of "Market Pointers"
are
analyses of

HA

234

people buy to hold

questions

try

Orradio

their

sold

is

Company—Analysis—B.

Railway Company

Street, New York City.

last

for dividends.

Exchange,
that all are not too high,
based upon earnings.
I especially want readers to re¬

is

Ohio

be

made

Bonanza Oil &
Mine—Report—L. D. Friedman & Co., Inc., 52
Broadway, New York 4. N. Y.

issue

j

when

high

very

stocks

Harris, Upham &

Co., Inc., 25 Broad Street, New York
4, N. Y.

Chesapeake

the

about

investments

Should

5, N'. Y.

Bancroft

these

were

stocks" which

234

Unfortu¬

Armstrong Rubber Company
Analysis
Co., 120 Broadway, New York
Joseph

day when the Thirty
jumping, of the 1,231
stocks traded, 636 closed lower,
while only 361 closed higher, and
234 closed
unchanged. Many of

The Stock Market

Johnson,

and

mine."

half of your money in some of the

These
&

but

up

big

Stocks

of

Organiza¬

gone

of

other

Buy for Income
One

J. R. Williston & Co., 115

—

"All

say:

Muir Investment

Railroad—Review—Ira

Maryland

American Alloys
Corp.—Report—S. D. Fuller & Co., 39 Broad¬
way, New York 6, N. Y.
Also available are
reports on Hol¬

Schmieg

—

Company—Analysis—Equitable Securi¬
Union Street, Nashville 3, Tenn.
Haupt & Co., Ill
Broadway, New York 6, N. Y.

Moseley & Co., 14 Wall

Products

Plastics, Inc.,
Industries, Inc.

Memorandum

ties Corporation, 322

stock

Corporation—Bulletin—De

iday

have

readers

many

will

reply: "What of it? You sel¬

which will
S.

York 5, N. Y.

451 East La Olas

Walt

on

By ROGER W. BABSON

tion, 100 Broadway, New York
5, N. Y. Also available
bulletin on California Eastern
Aviation, Inc.
Air Control

Probably

profits when your stocKS
Like a 'hog,' you always
higher prices before sell¬
ing, and then you wait too long
and your profit is lost."

Western Kentucky Gas

Western

six

prod¬

wait for

bond market.

*

Co.—Memorandum—F.

Street, New
Aerovox

_

—

Analysis

—

durable

do go up.

analysis

York 5. N. Y.

Trust

(1)

dom take

Co.—Memorandum—Kidder, Peabody & Co., 17

&

viz:

list

its

divides

column

But 1

ing, San Francisco 4, Calif.

"Weekly Stock Bulletin"—Nikko Securities
Co., Ltd., 6, 1Chome, Kabuto-cho,
Nihonbashi, Chuo-ku, Tokyo, Japan.
*

45

report—McCoy & Wiliaru, 30 Federal Street, Boston 10, Mass.
Wagner Electric Corp. — Memorandum — White & Company,
Mississippi Building, St. Louis 2, Mo.
West Virginia Turnpike—Analysis—Kaiser & Co.,' Russ Build¬

four

issue

Co.,

Uranium Corporation of America—New

mistakes made

Japanese

Bank

of the

common

lor

&

—

by investors; supply vs.
stocks; long range significance of
money-credit developments and
23 stocks for growth and
appreciation—Ask for free booklet
CC-8, Investors Research
Co., Santa Barbara, Calif.
demand

Witter

Broadway, New York 6, N. Y.
Unilever
Analysis — New York Hanseatic Corporation, 120
Broadway, New York 5, N. Y. Also available is an analysis

com¬

Besides,

this

Inc.—Memorandum—Dean

Street, New

Common

by the SEC
into

stocks

Company—Analysis—A. C.
Allyn & Co., 122 South La Salle Street, Chicago 3, 111..
Wall

265

SEC

1%.

Post

10

Securities Co., Adolphus Tower, Dallas 2, Texas.

the 35 over-the-counter
industrial stocks

1955-1959

Co.,

Texas Illinois Natural Gas Pipeline

National Quotation Bureau
Averages, both as to
yield and. market performance over
a' 13-year
period —
National
Quotation Bureau,
Inc., 46 Front Street, New
York 4, N. Y.
Positive Investment
Program for

&

Southwestern Life Insurance Co.—Memorandum—Dallas Union

used in the Dow-

used in the

views—Lerner

Corporation—Analysis—Seligman, Lubetkin & Co.,

Tobin Packing

of

Average

issued weekly

the high-priced stocks
gaining in price an average
of 8%, the low-priced stocks lost

Corp., 101 North St. Marys Street, San Antonio 5, Texas.

—

Over-the-Counter Index—Folder
showing an up-to-date
parison between the listed industrial
stocks

Co.—New

Union Gas Co.

or

far better barometer.

Co.,

Southern

market

were

Railway Company—Special report—Shearson, Ham14 Wall Street, New York 5, N. Y.

&

stock

that while

Productions.

—

Investment Opportunities in
Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill
Broadway, New York 7, N. Y.
Japanese-U.
S.
Taxation
Conventions
Analysis — Nomura
Securities Co.,
Ltd., 61 Broadway, New York 6, N. Y.
Also
in the same issue
"Nomura's Investors Beacon" are discus¬
sions of Bank Rates, and
analysis of Business Results and
Outlook, and analyses of Mitsui Chemical
Industry Co.,
Ltd., Sumitomo Chemical Co.,
Ltd., Tokyo Gas Co., Ltd.,
and Tokyo Electric
Power Co., Ltd.

costly yet

Stores

Disney

Operating results for six months ended
June 30, 1955—Blair '&
Co., Inc., 44 Wall Street, New York
5, New York.

Jones

measuring equipment—
Corporation, 229 West Erie

30 Pine St., New York 5, N. Y. Also available is an
of International Oil Companies and a memorandum

the Hagan Corp.,

on

Company, and

Cement

Sinclair Oil

mill

Stocks

radiation

of

new

made

ucts;
(2)
non-durable products;
(3)
transportation;
(4)
public
utilities; (5) tradd, finance, and
service,
and
(6)
mining.
An
analysis of these 265 shows also

Montgomery St., San Francisco 6, Calif.

Mississippi River Products Line Inc.
Insurance

line

than

year

the

of

divisions,

Circular

Square, Boston 9, Mass.

Safeway

44th Street, New York

Fortnightly Review—Analysis of current business conditions—
H. Hentz &
Co., 60 Beaver Street, New York 4, N'. Y. Also
Providence

describing

a

the

Company — Analysis — Laird Bissell & Meeds, 120
Broadway, New York 5, N. Y.

of the Canadian Securi¬

36, N. Y.

of

209

Pittston

Inc.,

Street, New York, N. Y.

Letter—Fortnightly review

available is

is

Street, Chicago 10, 111.

Book

phasis

—

The
Stocks

Corporation—48 page cata¬

Nuclear Instrument & Chemical

City Bank earnings.

the

wnen

maae

of business.

Hickey, 49 Wall Street, New York 5, N. Y.

Nuclear Instrument and Chemical

Cbrporation, 100

Also available is

Company and

Progress report and forecast

—

Known"),

stocks

Kodak, ran this average
was
useless as a true

it

so

measure

120

Kvvikset Locks Inc.—Memorandum—Rodman &
Renshaw,
South La Salle Street, Chicago 4, 111.

Stocks—1955

and
son

Coast Leaseholds

Irving Trust Company—Bulletin—Laird, Eissell & Meeds,
Broadway, New York 5, N. Y.

ment

Ever

for

Eastman

Inc.—Analysis—Singer, Bean & Mackie,
Inc., 40 Exchange Place, New York 5, N. Y.

Co.,

Broadway, New York 5, N. Y.

up

"highs."
The concentrated
buying, by pension funds and in¬
vestment trusts, of a few stocks
like General Motors, cu Pont, and

McKin-

up

Energy

went

new

&

Illinois.
Atomic

Average

more

"lows"

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

Prices

est

actually

Gartley & Associates,

—

this

recently

day

one

Stock

(the newspaper broadcast "Hign-

Hegarty and As¬

sociates, Inc., 52 Broadway, New York 4, N. Y.

Recommendations & Literature
is

Co., Inc., 15

<

Dairies, Inc.—Brochure—D. M. S.

Gardner

It

Maier

Thursday, August 13, 1955

.

.

.

1-

376

61

15

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

BOwling
Head

Green

Office

9-0186

Tokyo

DEMPSEY-TEGELER & CO

Exchange Place, Jersey City 2, N. J.

'phones

BOwling

HEnderscn

Green

9-4058-9

5-1300-1-2

•

Number 5456

Volume 182

Britain

,

..

The Commercial and Financial Chronicle

Selling Part of
By PAUL EINZIG

the recent sale of a small portion of dollar
seconds which have been requisitioned by the British Treas¬

Commfrrting

on

Dr. Einzig discusses the problems involved in the disposal
by the British Government. Says these
dollar securities constitute a second line of defense for sterling,

ury,

dollar securities

of

to

nationalization.

shows

the

extent

lor

attitude towards private
ownership has been abandoned.
Even now, under a Conservative
government, nobody appears to
claim that, since the securities are
no longer required for the purpose
for which they had been requisi¬
tioned,
they should be offered
back to their original owners.
In
all fairness they should be offered

also

very

titled

the

proportion cf the dollar securities
requisitioned by the government
the

at

War would

re-sold

to

strengthen

the

claims.

The

restrain

less

crisis
through a depletion of the gold
reserve, would lose
much of its
force.
Even
though it is well-

be

by their

r e

c u

it

se-

loan

a

granted by the

time

reserve

most

people

securities

was repaid

protest

and

become

It

that

would

sold

be
to

order

Wall

in

strengthen

sterile.

be

the

if

Even

the

public,

second line of defense

a

this is not incompat¬
sale into private

for sterling,

their

with

ible

Treasury wishes the
to continue to

securities
as

serve

long as the holdings
remain registered with banks act¬

ownership,

so

ing

the

wave of
Socialists.

a

of

Even if the

dollar

ish

of tnese dollar

rise to

small

a

as

in

a

holding, inherited from the
is

liquidated, together with

the

ten

of

years

justifiable

for

move.

of

its

disinflationary

mopping

up a

correspond¬

ing amount of monetary resources.
The

same

effect could of

amount

of

out

retrograde step.

1928.

White,

on

the Stock Exchange, it

of millions of pounds with¬

causing

a

sharp

Weld

&

Co.,

40

admit

Frederick

will

1

Guthrie and Schofield will

Wall

associated

York City, members

Exchange,

Sept.

Weeks

in

decline

Sterling

which the dollar secu¬
originally
acquired

for

pose

rities

were

This

announcer< ent

compulsorily
from
the
owners.
The sole object of requisitioning
these

securities

dollars which

proceeds

the

partnership. Mr. Neidig will make
his
headquarters
in
the
firm's
Philadelphia office, Fidelity Phila¬
Trust Building.

ST.

LOUIS,

Mo.—Reinholdt &

Gardner, 400 Locust Street, mem¬
the

bers

of

west

Stock

will

and

York

New

Exchanges,

admit

Burch

on

Mid¬

Sept. 1

are

held

in

the

form

of equities

compelling

Nor

nationalization.

VICTORIA, Tex.
Company,
Inc.
has
branch

office

Building

Williams

to

Cobb
opened

the

&
a

it

capital appreciation..

is ret to

be construed

of

that

a

is

reached, the Chancellor of the

check
the

the

case

for

drain—as

indeed

quite recently.

of

Hornblower

founded

was

in

The firm deals in

1888.

wide variety of investment se¬
curities, including corporate stocks
and bonds, tax exempt state and
municipal bonds and mutual funds.
It also deals in

and is

a

commodity futures

major '-•"^erwriter of new

issues of securities.

Florida

Inv. Branch

HAVEN, Fla.

Investors

have

—

First

opened

branch office at 373 Third

a

Street,

Northwest, with Brook H. Rollins,
as

manager.

as an

effer

to

sell

or as a

solicitation of an offer to buy the securities

by the Prospectus.

5 i

to

was

-

•"

'

'-•"y

■

V'

;

Common Stock
59 Par Value

Price $22.50 per

public

share

is,; entitled to expect
powers conferred on the

the

which

the

powers

were

Copies of the Prospectus
in states in

in¬

securities

tended.

though,

Even

Long before that stage

in

steps

office

James Talcott, Inc.

government to that end would be
used for strictly limited purposes

pleted to such an extent that the
securities Would have to be sold

take

Worcester branch will

and

was,

But it seems most un¬

would

15th

Weeks, which

Jr.

offering of these shares is made only

Compulsory

erty rights that the British

that the Treasury would
the gold reserve to be de¬

Exchequer

47

the

of interference with private prop¬

haste.

&

100,000 Shares

policy of

was

situation might conceiv¬
which their urgent
realization would entail consider¬

allow

after

McFaoden

direction

Jacques de la Marre.

object, for that matter, to secure
source of revenue, or to secure

a

likely

new

the

WINTER

—

the

in

under

a

arise in

able losses.

The
be

First Fla.

herein mentioned. The

holders to sur¬

acquisition of privately held secu¬
rities constitutes such a grave act

ably

will retire from

business

years.

New Cobb Branch

needed despe¬

were

render them, to pursue a

bonds they

true,

Mr. Reed

provide

to

was

constitute a second
line of defense for sterling.' It is

or

&

partnership.

critical period. It was not
object of
the government,

when

gold or dollar balances would
make relatively little
difference

the dollars

become^

Hornblower

co-Managers of the local

very

the

into

if

in

a

*

a

yield would be much smaller.
Beyond floubt, the gold reserve
needs strengthening. But the con¬
version of good dollar securities

Even

with

investment

Boston in

Reinholdt Gardner Admit

rately for national defense during

reinvested in dollar balances,

practice.

as

office.

A. Oeser and Charles P. Neidig to

delphia

Worcester

Reed, Elwin A. Guthrie and
Eugene
C.
Schofield.
Messrs.

of the New York Stock
on

in

Its present partners are Ja¬

cob

To Admit Two
Street, New

New

the

of

Exchange. Reed & Co.

established

was

branch

a

This attitude overlooks the pur¬

their

in

Aug. 31, and its

on

member 'firm

A

White Weld & Go.

of gov¬

would be difficult to unload hun¬
dreds

business

cease

be

course

achieved through the sale

curities

of Reed & Com¬

personnel

York Stock

mone¬

policy. The sale of official
security holdings to the private
sector of the economy has the ef¬
tary

fect of

brokerage firm established in
that virtually the

Worcester, Mass., investment
firm, will become associated with
Hornblower & Weeks on Sept. 1.
The firm of Reed & Company Will

many

government

a

nation¬
banking

Weeks,

pany,

war,

ment.

public would be justified from
point of view of securing the

ends

&

investment

1888, announce

It is not

peace.

known

entire

other abnormal economic arrange¬
ments that have survived aunng

option to buy them back at cur¬
rent market prices.
•

the

of

State-owned securities is regarded

kill the goose that
lays the golden eggs. The securi¬
ties
yield dividends in dollars,
while their proceeds in gold would
were

the

the unfavorable trend of these se¬

would

ever,

to

policy is to bring all holdings of
equities under State ownership,

Street,

the

securities

the

bonds

gold reserve. To do so, how¬

Area

expect, however, is that,
the Treasury re-sells

original holder should be given an

securities,

denationalization

of

restric¬

tions from doing so.
It is high time that this official

and when

ing of dollar securities to the Brit¬

is watched by
the barometer of

the part

resale

exchange

by

Hornblower

Weeks.

dispos¬

the

prevented

and

of Hornblower &

ernment securities. But in view of

securities

dollar

the

ally

securities

The least they are en-' hold such types of foreign invest¬

Since the ultimate end of Socialist

expected in some quar¬

was

To Absorb Reed Co.

strong demand for good dol¬
by investors, who
are
keen on acquiring them as a
hedge, and who are at present
a

lar

become

defense

figure

some

to

Hornblower & Weeks

former office will

pos¬

that

gave

on

another

able.

ters

dollar

as

as

mar¬

present

at

are

weak.' But there would

to

on behalf of the authorities.
The sale of the Treasury's hold¬

They regarded toe measure as yet

speculation

shares

have thus

which

line of

monthly

The sale of

Treasury's intentions in

of' the

respect

much

of

a

Britain's financial strength.

Reconstruc¬

time ago, and there has been

some

into

Treasury

second

form

the

is

our

run

the

gold

tion Finance

The loan

that

the

in

and

to

this

sesses

the

to

served

likely

known

own¬

to

we

are

surren¬

Treasury,

about the

that, un¬
appetite, we

argument

These

ers

for

wages

encourage

shares

private

some

more

further

at the prices wnich

be

It is true, the

equities

on

public.

dered

Corporation.

reserve

dollar

to

Einzig

would
the gov¬
expenditure. It

gold

pressure

ernment for

would

be

and bonds had

Paul

substantial

a

the

World

Second

would be far
impression of

reserve

from favorable. The

beginof

ning

gold

them

to

Treasury.

fects

their prices.
kets

received for the securities
when they had to surrender them,
much against their wish, to the

Moreover, the psychological ef¬
of a substantial increase of

— The Treasury
recently that a small

LONDON, Eng.

This

they

on

announced

to

which

the

back

the other hand, the British gold reserve needs strength¬
ening. Suggests sale of dollar securities to the British public.

but,

posed
prewar

Requisitioned Dollar Securities

9

(673)

their requisition,

rities

are

still

15

years

has

not

ownership,

this

aroused

protest by those op¬

any

and in

F. Eberstadt & Co.

government

fact

be obtained from the undersigned only

after

the dollar secu¬
in

may

undersigned is qualified to act as a dealer in
which the Prospectus may legally be distributed.

which the

August 18, 1955.

Contracts, negotiated by the undersigned, have been entered into for the
7 he

Carl M. Loeb, Rhoades & Co.

\otes

are not

purchase of these T[otes by certain institutions.

offered for sale, and this announcement appears as a matter oj record only.

$1,500,000

Members Tfcw

Tor}{ Stoc\ Exchange and other
Leading Stocl{ and Commodity Exchanges

James Talcott, Inc.
Underwriters and Distributors

4lA% Subordinated Notes due October 1, 1964 to 1970

of

Investment Securities

42 WALL STREET

NEW YORK

5, N. Y.

F. Eberstadt & Co.
Private Wire

System to Branch Offices, Correspondents and

their connections in 90




Cities throughout the United States

August 18, 1955.

iV,

The Commercial and Financial Chronicle

(674)

10

wages and fringe benefits to those in
general industry, it is believed that any increases granted
will not be large. Also, in part the increases will be taken
out of Federal income taxes and in part they will be offset
by the constantly improving efficiency and the trend
toward
more
and
more
mechanization
of
roadway

Marketwise railroad stocks in
a

pressure nor any heavy liquidation but the
buying interest seems to have subsided and even
some
of the best quality issues in the group have re¬
treated quite sharply from the highs of the year. Cer¬
tainly there has Ibeen nothing in the current traffic or
earnings reports, nor in the earnings and dividend outlook
for the next six months or so, that would account for a

conspicuous

and

a

few

Present

Another factor has

probably been the uncertainty over
freight rates. The present surcharges expire the end of
this year and the railroads have petitioned the Interstate
Commerce Commission to make them permanent. The
railroads have presented a strong case for continuation of
the higher rates and it is the opinion of railroad men that
the Commission can not help but rule favorably some time
this fall. At the same time, nothing of this nature can be
taken absolutely for granted and prospective buyers would
apparently rather wait and be sure. Also, there is the
psychological affect of the dire predictions the railroads
must necessarily make as to the probable results in earn¬
ings if the surcharges are allowed to lapse.
As

a

final consideration, there is the

question of wages
possible additional fringe benefits. Considering the
general industrial pattern there seems to be little question
and

but that the carriers

costs,

in

and

some

will

be faced with increased labor

the pattern has already been
In the important non-operating
it is not considered likely that any
areas

pretty well ironed out.

category, however,

agreement will be reached in time to have
on

1955

any influence
earnings. Moreover, in view of the present rela¬

Committee

Despite the fact that residential
construction
rate in

is

rolling along at
of

excess

1.3

a

million units

a
year, there is as yet "little evi¬
dence of over-building," a Com¬

mittee

the

of

United

States

Sav¬

ings and Loan League reports.
The
findings of the League's
Committee
nomic

Trends

on

Policies

were

Eco¬

and

in

reported

the Committee's annual Mid-Year

Report.

The

Committee,

in

dis¬

cussing
the
question
"Are
We
Building Too Many Houses?" cited
several

"important,
of its

support

factors"

belief

that

in

today's

high rates of home building
been

were

stated," the Com¬

mittee said, "that current
construction

high

nearly

are

the

as

rates of

twice

as

rate

of

estimated

household

formation, and that we
therefore be over-building.

may

"The

Committee

would

like

household

of

formation.

addi¬

In

tion, the constant

shifting of our
population, with movements from
country to city, from central cities
suburban

areas,

from

and

re¬

likely to

are

con¬

Many

in terms of the

relationship of new
building to (1) the long-term re¬
quirements of the economy; (2) to
the

effective

current

for

consumers

cated

to be difficult

"If

and

or

many

rates

proved

design,

combinations

doubt

Mr.

will

increase
of

even

of

the

some

of

rate

obsoles¬

older

houses

and

newer

houses

that

some

not

designed, equipped or lo¬
cated
properly.
In
the
future,
much will depend on the capacity
are

of builders to
are

produce houses that
sufficiently attractive to buy¬
and offered at prices that will

enable them

to

compete with
isting properties."
With

regard

to

the

of

both in this country

abroad.

number

and

has

He

of

written
business

financial

publications.
joining the Kidder firm

Before
Mr.

Cortese had

Hutton &

Co.

been

been

with

municipal bond trader

a

member

Fordham

in view

of the

Co., Inc.

the

of

faculty

University, Mr. Cortese

will give a course this fall
stock market at the
Adult Education
Mr.

years

retired

from his

years ago

33

Center.

Kupsenel
in

the

field.

"If

recently admitted to member¬
ship in the New York Stock Ex¬
change.

Wm. Fisher
On

Aug.
will

25
be

Admit

to

Sander

admitted

Wein-

B.
to

limited

Stock

(1) New houses, of course, com¬
pete immediately with
existing
homes

and

for

creates

of

the houses

security

may

(2)

New Walston Branch

for

HAGERSTOWN, Md.

problems

mortgage lenders because the

values

which stand

mortgage

loans

&

Co.

fice
the

be impaired.
To

has been
little evidence of price declines.
Indeed, reports of Trends Com¬
date,

Exchange.

San Francisco

of

buyer

and

current
are

houses

demand

properly

rates

of

considered

with

choices

and renters,

ing

-

tendency toward

any

over-building

there

have

in

opened

the

Hotel

management

Hershey,

Jr.

previously

Mr.

with

—

Walston

branch of¬

a

Dagmar

of

under

John

Hershey

Cohu

&

R.
was

Co.

charge of their local office.
-

Adams

&

HF.

Peck

Members New York Stock
\

Exchange

and American Stock Exchange

DEALERS IN

a

RAILROAD SECURITIES

-

Leased Line

Bonds

Preferred

Common

for

located

house¬

in

and

rates

though

wide

available

120 Broadway

New York 5f

selection

to

buyers

Telephone REetor 2-4949
Teletype NY 1-724

current house build¬

may

the

a

Unlisted Investment Stocks

rela¬

tionship to the ready availability
Chicaco

He

was

points:

Guaranteed

built

building

of

few

a

firm after

own

textile

homes, the Committee said:

CORPORATION

the

on

University's

in

with

be

too

housing

low.

supply

Al¬

of

mjany local communities has. been

-

of

anticipated

economy

E.

a

with Lazard Freres &
A

W.

registered rep¬
prior to that he

as

resentative, and
had

stock

of

also

articles for

partnership in William Fisher &
Co.,
120 Broadway,
New York
City, members of the New York

long-range require¬

current
-

and

building volume upon property
values, the Committee made these

housing

incomes."

well

the .press

a

ex¬

impact

was

widely quoted
in

im¬

materials, better

a

market

letter that

in

con¬

that

Co. wrote

daily

Cortese

for

Kidder

M.

&
j.

a.

equipment and attractive locations

economy," the Com¬
"it would appear that

expansion of the

Of

A.

as

market

analyst

attractive

more

of

larger population and rising real




last

stock

more

high rates of home building could
be justified over the longer run

Cleveland

the

years

lo¬

considered

are

the

of

future

Philadelphia

St., New York
City.

It would appear

little

offi¬

its

at 40 Wall

ces

able neighborhoods.
is

n-

The

Cortese,

under current

ments of the

Pittsburgh

have

equipped houses located in desir¬
"There

a

firm will

of

demand

well-built

current

terms

Boston

been

new

houses; and (3) to property

mittee said,

New York

general

as

nounced.

however,
to
build
too
well-designed and properly

values.

construction

,

Kupsenel

partners has

ditions,

as

the future."

third

a

locations.

wrong

ers

question, "Are We Building
Houses?" could only
be answered, the Committee said,

FIRST BOSTON

Samuel

Over-Building

by

York

Cortese,

of

Kupsenel & Co. with A. J. Cortese
ana

"It would be very easy to build
too many houses if they were of
the wrong type and placed in the

to

emphasize, however, that incomes
and the terms and availability of
financing are more important fac¬
tors in determining the intensity
of housing demand than the rate

Too

The

the1 New

of

Exchange firm

two

increased

cence

"It has

The

Dealer

Stock

the past five years, in others less
than 10% has been added.

not excessive.

tinue in

Distributor

Formed in New York
Formation

the United States
Savings and Loan League
important factors in support of its belief that today's
high rates of heme building are not excessive.

cites

"These trends

♦

Cortese, Kupsene! Co.

far in the

so

of

gion to region continues to stimu¬
late housing demand.

Underwriter

Traffic

t

dividend disbursements.

Sees Little Evidence of

to

Railroad Securities

those more than 10 years of
has been reported, but the
change from last year has been
of modest proportion."

For

that much has been

accomplished merely in getting high
level recognition of the present inequities in transporta¬
tion regulation and that there is a good chance of some
remedial action when Congress reconvenes.

sluggishness in the
especial¬

Some

age,

business and

sizable increase in

a

a year

ly

crop estimates indicate that
gains will continue throughout most of the rest of
the year. On this basis it now seems
likely that 1955 net
income of the class I railroads
may reach $850 million.
This would be about 26%
higher than the $673.6 million
reported last year and not too far below the 1953 peak of
$902 million. Such prospects fully support confidence in

imponderables in the railroad picture
that may have contributed to a decision on the part of
institutional investors to adopt a "wait and see" attitude.
Failure of Congress to take fast action on any part of the
legislative program recommended in the Cabinet Com¬
mittee report probably caused disappointment in some
•quarters even though close students of railroad affairs
had not expected immediate action. Railroad analysts feel
are

ones

these

worsening in investment regard for railroad equities.
There

(3)

outlined above, are not
and their influence on invest¬

substantially above a year ago
during most of July was approximately at the 1953

level.

true

was

1

ago.

as

for the first half of the current
year.
third quarter has continued

broad

rapidly than

more

likely to prove transitory in view of the
fundamentally favorable factors in the railroad picture.
Earnings for the industry, and for most of the roads in¬
dividually, showed wide improvement over 1954 levels

considerable progress on the upside but the major portion
of the list has lost ground fairly steadily. There has been

to

Also, such houses have been mov¬
ing
off
the
market
somewhat-

ment sentiment is

Missouri-Kansas-Texas common, have been able to make

no

horizon,

believed to be serious

rather poor account of themselves in recent months.
Some special situations, highlighted by the action of

ing

firm

market for older houses,

The clouds in the

general have been giv¬

indicate

members

slightly increasing prices for new
medium- and low-priced homes.

maintenance.

Dividends

Thursday, August 18, 1955

.

.

mittee

tionship of such

Rail Fundamentals Bespeak Higher

.

Private wires

to

Hartford and Philadelphia

N. Y«

,

in

Number 5456

Volume 182

.

The Commercial and Financial Chronicle

..

(675)

If

do, somebody has wasted
education,
and
you
have wasted a lot of
time.
The greatness of a nation
depends
upon
the
number
of

Beware of False Liberalism
By LOTH AIR TEETOR*
Asst. Secretary of Commerce for

Commerce

been

from

much

so

and women, points out

opportunity for

men

young

over-regalalion, excessi/e taxation and

govern¬

surge

of

mer¬

starve.

independently owned businesses, and warns of false liber¬
promises security at the expense of individual liberty.

35 years, I
have had considerable experience
the

During

last

helping to manage a medium-

in

sized

have also
privi¬
lege
of offi¬
cially serving
Had tne

v

State and Fed¬

From

ments.

these

experi¬
will

I

ences

try to present
for

your

con¬

sideration

a

few ideas that

I

assume

of

most

will
Lothair

help¬

be

may

ful.

you

into

go

ieeior

business,
and

for

you,

while.

'

.

is

What

business,

the

real

Some

anyway?

of

people

would say to make money. Others

might

employ
people.
the purpose of the
profession is to employ

Would you say

medical
doctors

farmers

quisition
purpose

Let

The

Is the

money?

Of

the

ac¬

can

money

nor

the

em¬

be

the

real

people

tell

real

you

purpose

i

price

they

pay.

is

such

,

a

purpose

money—yes,

and

•

will

he

business.

Profits,

employment
a

wards

will

be

the

Address
Graduates

"■Commencement

"'delivered

to

industrial

Great

and

opportunity
woman

or

Those

mon

with

a

common

is

knicks but once."

find

we

been

maybe
In

on

with

filled

ple,

165

resourceful citizens
on

who

/

v.

"Common

The

Man"

We hear

your

called

little

you

guy.

I

aspire to be

a

hope

none

common

of •■f

man.

is

men

this

of

leader¬

the

In

not

place in
men

f.

nation

such

ages him to accept opportunity to
improve his economic status.

a

fruits

of

"The

tremendous

our

has just never haopened before in the history of the

system

world.

will

"Free

the

system

and

I

can

observe

in

am

has

what

is

where

worst

I

happening.

of free

enemy

enterprise

today

compe¬

is

bench

works,

is

unknowingly
by

would

a job at a
desk, with tools fur¬
by the employer. Now he
employee.
a

an

he

count and

regulations

best

practical
was

businessman

—a

dear

friend

In

definition

of
of

own

and is

one

or

I

written by a lead¬

ing

to

This is

not

nn

to

savings ac¬
capitalist. In

assistants

transition

free

is

and

Continued

busi¬

the

is

a

fruit

enterprise system.

offer inn of these. Debentures for sale,
any ot

on

of

is

It

page

12

be

"

t

an

offer to

*

i. /

.

<

,

$25,000,000

Rheem

educated
and

wo¬

expected

to

take

the world
and

solicitation of

or a

They

merits."

men

offer to buy,

or an

such Debentures. The offering is made, only by the Prospectus.

as

"un¬

women."

This

some very

def¬

Manufacturing Company

Twenty Year Sinking Fund 3%% Debentures
Dated August 1,

Due August

1955

1, 1975

■

you

responsibil¬

Price 98.25% and accrued interest

"
"•

I.

the ^business
entering,

world

you

have

which
a

very

iters

may

he obtained from

any

only in stales in which such underwriters

solicitation of

an

of the several und/r-

are

dealers iu securities ami in which the Prospectus may

buy any of these Shares.-

a

more

"This
the

Merle

his

Copies of the Prospectus

to

a
a

small shop of his
proprietor. He hires

full-fledge employer.

Indianapolis

mine,

addition

Luy,

n l

This announcement is neither an offer to sell nor a

opens

becomes

time he buys a

heard

Sidener.

may

Then he gets

or

"Soon

taxes.

The

eliminated.

nished

shackle the system until it is ulti¬

destroyed

be

enterprise in action

pendent.

ignor¬

Too many people don't un¬
derstand it—-don't know
how it

ance!

and

basic

The
helpless infant is cared for by its.
parents, whose industry and thrift
have made provision for him. The
child goes to schools provided for
him by others, for he is still de¬

Communism is the most vocal, but
probably not the most dangerous.
titive

the

be observed all through life.

enemies,

position

a

is

beneficiary of the free enterprise

advantages,

The

individual

unit in free enterprise. When this
fact is understood, the misconcep¬
tion
that
business is the
chief

Our kind of free
competitive enterprise and indivi¬
dual freedom, accompanied by its

women

not

been

obligations and

you are

system.
It recognizes the?
rightful heritage of the American
citizen to get ahead and it encour¬

or

men

and

are

common

imposes upon

•

prise

other

productivity.

we

educator."

need

individual.

have

common

lot of talk these days
ities.
common
man—the sov

the

enjoying

bees.America
frozen social stra¬

no

•"

V f; .9

is

standard

a

other

no

to

Freedom of opportunity for all is
the
purpose
of the free enter¬

ever

queeri

You-are

a

about

No

such

enterprise the in¬

group of individuals
accomplish and achieve in
proportion to ability and capacity.

be

every

become

inite
*

university,

a

leaders '

'of

men..

'

Delusion

—the

ever

concerned

? "Such

to

willing to work for them—
can't help being great op¬

portunity.

was

free
or

may

distribution of goods and services

gen¬

uncommon

cannot

College

there

re¬

and

choose

we

must rise by their own

sold

"Under

dividual

most

education

everyone.

claim

close

uncommon

■}] You, the graduates of Tri-State

wanting the best things in life

and

the

not

rise

loving,
are

than

tifications which prevent the free

million peo¬

freedom

in

Higher

living,

comes

and

go

When

We need

recognizes

hundreds of doors. :>
of

of

numbers

can

war,

an

we

all times

made;' like

the

nation

a

nation

to

When
an

when

intimidated, who
with applause
meters, nor those who sell tomor¬
row for cheers today."

are

greater

mately

imperative

of

.who

necessities

people, are how owned and
enjoyed
by
Americans
in
far

uncom¬

uncommon

an

ship

is that

want

we

for

nation at

will

*

all

We

Washington,

it

of

president of

"The

When you

it

uncom¬

women.

George

admiral.

or

want

around

-

ap¬

"Free enterprise means an open

in

to

business¬

a

road for merit.

nation

luxuries

was

who, though aware of socio¬
economic theories, developed his
own in
portraying our native doc¬
trine of free enterprise. He said:

our

But,

from

come

humor

yearn

the

after you yourself
knocking —»■ and

be

done

vote-getting

and

about

doctor.

mon

It has been my

opportunity

your

probably
have

have

get sick,

we

others

opportunity sel¬

dom knocks even once.

dogma may

man

a

greatest strides of human

"The

.

that

uni¬

and

Lincoln,
or
Thomas
They were humble in
origin, but that was not their
greatness."

you—but, establishing yourself in
a business is never easy. You have

observation

a

Edison.1

the young
good pro¬

all

and

basic

once

Sidener

man

It supposedlly proves the

women.

it

—

dignity

Abraham

desire to work.

Opportunity

as

men

know

eral

for

is the nega¬

It

mediocrity

use

"The

education, equipped with
imagination, ambition and a sin¬

and

by Mr. Teeof Tri-State

College, Angola, Indiana.

of

progress

mar¬

there

to size.

of

is to be whit¬

man

individual

another

proletariat.

humility of demagogues."

fessional

make

reward

of

paratus.

fields

many

before' has

Never

in

hard, ingenious work, But, if you

tor

down

"The

age—atomic energy.

incentive for

the

tled

be

—and now, the new wonder of the

cere

uncommon

common

is

idea

Soviet

The

opportu¬

no

finance

keting,

willing

security,

job " well i done.
provide

about

whole
the

of

that this

us

the

formity."

open
to you — automotive,
electronics, air conditioning, chem¬

man

The

slogan

commencement
last
hundred

are

become rich—

even

talked

has

such

to

of

century

other

no

The

available

It is dinned into

the

man.

exception—but,
1 will also talk to you about your
obligations. There probably never
has been a period in history so
fraught with opportunity as the
one in
which we live today. First,
you have had the opportunity to
obtain a splendid education. Now,
you have the opportunity to enter

to

employment of people will be

automatic.

-for

and

successful

is

one

the

I will be

nity.

what I think
of business.

able

are

If

for

history.

as

■

common

Merle

system

freedom, a legacy of the conserv¬
ative
faith, we have lived® and

imagined.

the

creature,

that

activities,

he was also a
Indianapolis School
Board, and, for years, taught the
largest Sunday School ciass in.
Indiana's leading city.

our
American
concept
enterprise and individual

imaginary

cousin

em¬

an

free

;; ;;
"Among the delusions offered
us by fuzzy-minded people is that

tion

suppose every

years

provide a product or a- service
that people need or want > at a

to

for

Under
of

of

name

of

*

man.

regardless

Competitive Enterprise.

Man."

heard the expression "opportunity

of- business

purpose

applies

work

or

speaker

of business.

me

the

make

Neither

of
of

ployment

is

to

or

not.

course

business

of agriculture to employ

purpose

,

to make money?

or

rule

The

is Free

America,

is

ployer.

to

say

this

istry, construction, aviation,

purpose

the

on

whether you operate your own

of

little

a

eye

business exists—service to others.

so

let's talk about

business,

your

States.

had do say about the "Uncommon
_

off, don't forget the
the
reason
that

purpose,

And

Govern¬

eral

keep

ball that pays
real

I

and

business,

to

want

what Herbert Hoover

to

ness

member of the

above all others is
responsible for
the
productivity and wide distri¬
bution of wealth in the United

prospered

Listen

alism that

particular obligation and respon¬
sibility. It is to uphold and help
improve the economic system that

without

men

ideas,
the
inspiration, the
leadership of "uncommon men"
not
only fail to prosper,
they

and absorp.ion of small size firms with corporate giants
largely due to our high tax philosophy. Stresses need for new

and

Common

the

gers

is

China and India
be the greatest nations in

the world.

other

Holds present

If

not so,

were

would

the dangers to free enterprise arising

interference with business.

ment

never

it has sired.

men"

"uncommon

this

Department executive, though stating that

has there

before

Domestic Affairs

you

lot of money on your

a

11

qualified to act

as

legally be distributed.

offer
'

Blyth &. Co., Inc.
iVot

a

New Issue

The First Boston

Kuhn, I.oeb & Co.

Uarriman Ripley & Co.

Goldman, Sachs & Co.

Corporation

Kidder, Peabody & Co.

Incorporated

hazard Freres & Co.

40,000 Shares
Merrill

Seaboard Air Line Railroad Company

Stone & Webster Securities

Dean Witter & Co.

Common Stock

Lehman Brothers

Smith, Barney & Co.

Lynch, Pierce, Fenner & Beane

F. S.

Union Securities Corporation

Corporation

Hornblower & Weeks

Hemphill, Noyes & Co.

Moseley & Co.

Paine, Webber, Jackson & Curtis

"

A. C.

Schwabacher & Co.

W. E. Button & Co.

A. G. Becker & Co.

Corporation

Allyn and Company
incorporated

,,

American Securities

Alex. Brown & Sons

Incorporated

Central

Francis I. duPont & Co.

Republic Company
i

Ballgarten & Co.

Incorporate))

E. F. Button &

Reynolds & Co.

Company

Walston & Co.

Fucker, Anthony & Co.
Blunt Ellis & Simmons

Robert W. Baird & Co.,
Incorporated

Bosworth, SuHivan & Company, Inc.

Elworthy & Co.

The Illinois Company
Incorporated

MORGAN STANLEY & CO.

Irving Luitdborg & Co.

McCormick & Co.

Piper, Jaffray & Ilopwood
.4 u gust

17f*1955.




August 18, 1955.

Newhurd, Cook & Co,
William R. Staats & Co.

^

The Commercial and Financial Chronicle

(676)

12

Continued from page

We

11

need

ideas

Beware of False Liberalism
in

merely

groups

are

Consider
500

never

are

selling
a

$5 million.

becomes tomorrow's
capitalist. Each individual is".at
once
producer
and
consumer,
buyer and seller.
He is free to
travel the open road for merit."

merge

opportunity to spend some of the
money they accumulated, and pay
the
relatively
smaller
capital
gains tax, than continue to oper¬
ate their own
business, and see
most of their earnings taken by

Has Done

the tax collector.

competitive enterprise

The free

system, of which reward in rela¬
tion to contribution is an essential

men—hence

nation

The

does

men" is doomed.

for

mediocrity

proach the reward for merit.
It is easy to sell the things we
It is

like.

of

value

the

nize

truths

that

business

are

success

in

economic system
only if they are
balanced by existent penalties for
failure. There is no governmental
substitute, for the lack of prepara¬
tion, b*d judgment, sharp prac¬
tices or the indisposition to exer¬

There

these

understand
forces

cause

eliminate

now

are

incentives

the

that

tinued

to
are

prosperity of the nation.

..

One of the things that is hap¬
pening in American business to¬
day is that there is too little in¬
vestment
in
new
and
growing
business, because incentives are
not

commensurate

with the

and

Highly graduated taxes,
directed at both capital and in¬
come are tending to dray up ven¬
ture capital, so important to new
operations; — particularly in the
area

of

small

and

medium

business.
that

Essentially, the
is being invested in

sized

money
expan¬

sion today is coming from well es¬
tablished firms, reinvesting their
own

profits, and from stock issued

over

scramble

small

and

medium

democratic

as

way

of life.

These essential needs are
being met today, because in¬
are too low for the high

centives
risk

hard

and

starting

Another device which

weakens

free

enterprise is excessive gov¬
ernmental regulation of business,
attractively packaged as a "plan¬
ned economy."
It is evidenced in
the control of prices, in the regu¬
lation of production and distribu¬
tion, in the establishment of sub¬
sidies which upsets the free play
of

markets

ciency.

The

with

start

creates

ineffi¬

"regulators" always
plans and small

small

regulation
it

and

But, to be effective,
aggrandizes itself un¬

reaches

the

point

becomes

the

where

the

rule

exception, reduc¬
competitive forces, smother¬
initiative and destroying in¬

ing

ing

centives.

in

involved

work

growing

and

vein-,

new

tures.

The

had

United

States

master

economic

a

has

never

plan

to

of

tem

private

economic

millions of indivi¬

duals, each one believing in his
plan and taking enthusiastic-

own

responsibility for making his
work.

pian
set

should

Government

ground

rules

own

earth

on

has

prevent

so

many

American business.

as

True liber¬

alism, like true conservatism, em¬
phasizes the independence and

false

a

promises security, and in so
doing — destroys liberty. While
claiming to protect the weak from
economic
oppression, it betrays
him to another force, more de¬

him

leads

the

state

the

citizen

un¬

himself

limited.

for his

he

people into thinking that the state

evolved.

whereas the truth is that the state

A

healthy

such
to

as

small

raise

or

idea of

service, and
a

women

a

grow a
to

acorn

a

capital,

product, or a
business from
giant oak if

ability and capacity permit.
Although the American free en¬
terprise system has created more

wealth,

distributed

wealth
and has produced the highest ma¬
terial
standard
of
living
ever
known, we know that it is not a
perfect system.
Over the years,
it
has
been
improved in many
and

ways,

more

improvements

many

will be made in the future.
cism

based

standing

facts

on

is

structive.

and

welcome

Danger

Criti¬
under¬

and

con¬

from

comes

those who would substitute

tirely

en¬

an

philosophy and system,
imperfections.

new

Principles of Free Enterprise

As you enter the business world

tions,

I

hope

consider

you

You have

fish interest in

well

very

sel¬

defending the

sys¬

a

tem

against its enemies, and de¬
manding fair rewards.
But be¬

yond that, you know it is the only
system that protects the economic
freedom of the individual—at the

time

same

producing

distri¬

and

buting more wealth to more
ple than any other system.
You

will

servative,

be

labeled

that

and

peo¬

Con¬

a

is

good, be¬
cause
a
true conservative always
bases
his
position
on
solid
achievements and tested experi¬
I

ence. i

like

proach

of

dynamic

very

much

Clinton
economy.

"Conservatism

in

the

Rossiter

to

a

In his book
America," he

conservative

".

.

Rodman & Renskwr
(Special to The Financial Chronicle)

CHICAGO,

It

this

is

liberalism

false

should

Salle Street, members c; the New
York

against as long as the
speech prevails.
The

merly

Midwest

Mr.

with

Stock

Rocca

La

Fairman.

Ex¬

for¬

was

Harris

&

Company, Inc. for many years in
the private placement department.

under

Lawrence J.

that

right

of

Lawrence
Dick

opportunities to be found
free competitive enterprise

skill.

and

that

reward

creative faculties

mans'

tinually
new

will

thrift,
fair

opens

up

It

BEVERLY

is

Harold

and

Ryan

have

Sutro

&

con¬

fields and
Any day you

don't

You

have

to

single freedom
or principle.
So long as we have
this system of individual free en¬
terprise in the United States, you
can
make of your life what you
a

staff

of

Canon

Investors

LOS
liam

ANGELES, Calif.-Wil¬
Massey is now connected

B.

with

California

Investors,

3924

Wilshire Boulevard.

Joins Coombs

Staff

(Special to The Financial CK-IONICle)

Our founding fathers had a phi¬

losophy, but not an overall plan.
As a matter of fact, they feared
more than
anything else a plan¬
ned
economy.
They knew that
when our country became great,
be

would

because

LOS ANGELES, Calif.-Charles
E.

Todd

with

and

government,

powerful

big,

But,

BEVERLY

fundamental

right.

a

and

philosophy—
and

powerful

It is embodied in a prayer

Calif.—An¬

Hentz Sc

Co., 9680

Monica Boulevard.

Santa

Now With Oscar Kraft
(Special to The Financial Chronicle)

LOS

had

HILLS,

the staff of H.

of it.

they

602

Street.

drew P. Lazar has been added to

always accompanies govern¬
domination.
They
would
none

affiliated

Company,

(Special to The Financial Chronicle)

they feared the subordination of
the individual, and
the tyranny

have

and

With H. Hentz Co.

individuals

developed greatness — not a
few
individuals, but millions of
individuals. They knew that any
form of planned economy meant

has» become

Coombs

West Sixth

had

ment

the

North

275

(Special to The Financial Chronicle)

will.

that

joined

Co.,

Calif.—

Randall E.

and

With Calif.

long to a particular party, church
race.
You don't have to forfeit

compromise

HILLS,

Gordon

be¬

or

or

B.

Drive.

choose, you can participate in this
system to the full extent of your
abilities.

16 at the

Aug.

away

Two With Sutro Co.

energizes

new

opportunities.

&

(Special to The Financial Chronicle)

system of fair rewards for ambi¬

tion,

Lynch, partner in
Merle-Smith. New York

of 60.

age

best be understood when we
recognize that it is primarily a

this

Lynch

J.

City, passed

may

L.

and

changes.

fight

and

oppose

free

it

La

B.

Rodman & Renshaw, 2CG South La

only to the wealth that

access

111. —Harry

Rocca has become associated with

wealth,

distributes

and

obligation.

your

people produce.

we

ap¬

said:
The

has
its

obliga¬

the fundamental principles of free

enterpirse.

produces

have the opportunity

you,

new

a

in

one

and

men

accumulate

take

is

economy

young

This is your oppor¬

come.

Harry B. La Rocca With

vote

can

It misleads the

living.

a

to

It tempts

needs.

think

to

look

to

From these principles the
American
Way of Business has

which

and

liberalism

that

un¬

was

to

prayer

it

tunity, and

inal, to do what seemed

circumstances,

you with
that you will
keep it burning
brightly for the generations that

are

is

liberalism

the

We pass it on to

fervent

rekindle

False Liberalism

A

there

But

players, but generally oppor¬
tunity to experiment, to be orig¬
der

world.

the

self-reliance of the individual.

the

best

Protect

new

structive, and more powerful—
governmental domination.
False

to

land be bright,
freedom's holy light;
us
by Thy might,

With

group

any

sing.

we

may our

Great God, our King."
fields,
as
much
private capital,,
We of the older generation pass
improved the working conditions into your hands the tcrch of in¬
of
and divided as high a dividual freedom which has flick¬
man,
percentage of the fruits of labor, ered out in many parts of the

explored

slugging, tripping and buying off

up

To Thee

Long

risked

jacket its thinking, and 1
hope it never will have one. What
we have had are millions of plans
worked out by

J

fathers' God, to thee,
Author of liberty,

better
ways
of doing
America has always stood

Where

.

"Our

liberalism.

for

know, but which we
Let me repeat it
'

forget.

for you.

arid

new

all

we

too often

prise, but to make it work."
I would also hope you will be¬
come
a
true
liberal, because a
true liberal is always looking for
things.

Thursday, August 18, 1955

.

which

enter¬

strait

with its opportunities and

rather than

sized

in

mad

giants—so extreme

regimentation

of mergers

a

high

our

in¬

owned

dustry.
not

should be, not to supplant the sys¬

basic-

the

need

interest of home

local

The

of the

endanger

regulations.

surge

communities

and

more

competition,

increase

tion
to

til

present

be

they

in order to correct

these same established firms,
usually large, where the element

The

jobs;

provide

to

necessary

mortality
among the small businesses, and
increased
governmental regula¬
and

of risk is small.

Cause of the Present Surge
Of Mergers

nothing

with
would

There

by

with

a

large,

very

between.

risks

involved.

suffi¬

accumulate

to

period of years, we
would
end
up
with only
two
classes of businesses—very small,

vital to your success and the con¬
tinued

firms

capital

independently owned businesses.
This is not a good direction. Con¬

be¬

work

inability of

after taxes to grow
into middle-sized firms, to reduce
'he number of our middle-sized,

that

facts,
at

^mall

cient

today

definite trend

a

to

grow

your

the employees.

is

through mergers and

enterprise system.

you

while

concern

and their families
insuring the continuation

of jobs for

destroying individual free¬
it is expressed in the free
important

larger

a

sell

or

are

—and

as

dreadfully

merge

owners

for themselves,

to think. Those who, by
edict, would restrict
opportunity to fail are, in a

is

an

still alive, thus safeMiarding t^e savin*?*8 °f a lifetime

quired

It

to

hey

government

dom

at

the

nut

tion, particularly the exertion re¬

sense,

part of the
unfortunate time,

pay

ness,

meritorous

the

the

run

fresh

of

They must be encour¬

to

are

cept

competitive

a

are

than

the tax and having to ac¬
undesirable partners which
might lead to failure of the busi¬

to

as

The rewards for

to fail.

Rather

risk of having to sell a

the possibil¬
ity under the American system—
unpleasant,—such

necessary

tax.

estate

difficult to recog¬

more

it is

owner,

to sell a
.arge
part of
the business to
strangers to pay the tremendous

ap¬

never

the

of

frequently

The reward

must

death

Upon

the development of "uncom¬

age
mon

gift taxes.

families because of high

guard the incentives that encour¬

their

with

interests

their

ing

safe¬

not

raised to

gift taxes,

the point of confiscation, are also
encouraging mergers. Owners of
business are deterred from divid¬

*

that

and

Estate

produced
the
of uncommon
the greatest nations.

ingredient,
has
greatest
number

rather

would

today

with a larger company, di¬
versify their investment, have the

Enterprise System

Free

What the

The

business

earner

wage

is probably worth
owners of such a

It

people.

Today's employee becomes
tomorrow's
employer.
Today's

static.

is

tax philosophy.
business
employing
our

the

need

middle-sized
firms, and some will become the
giant concerns of tomorrow. They
aged

giants

to

out

largely due to

which

of people,

enterprise

free

under

There

America.

classes

firms

fixed

that there are no

evidence

We

enthusiasm

and

faces.

new

independently

new

business.

owned

..

Finn

ANGELES,

has

Oscar

F.

Sixth

become
Kraft

Calif.—Alfred

connected

&

Co.,

230

with

West

Street.

WIIIIIIIIIIKftllllllllllllllllllllllltni!IIIIIIIKIKIIIIHIllllllllHIIIIIIUIIIinMitllllll£2

will

.

preach

dutifully the conservative
message that the equation of hu¬
man
liberty balances emancipa¬
tion with order, confidence with
caution, experiment with experi¬
ences,
adventure
with
steady
habits, self-expression with selfdiscipline, idealism with realism."

STOCK (r BOND
BROKERAGE SERVICE

".

for Banks, Brokers and Dealers

.

The

.

conservative

negative and

Members

York

American

new

dictionary,

liberty
will be defined with the help of
words like opportunity,
creativ¬
ity, productivity, and security."

Hardy & Co.
New

In the

narrow.

conservative

Members

should

give us a definition of liberty that
is positive and all-embracing, not

The conservative "...

Stock

Exchange

tinue

Stock

Exchange

lems

to

argue

that

.

will

social

con¬

prob¬

E

~

results

of individual

30 Broad St.

New York 4
Teletype NY 1-733

*
.

MAIN ST.

&

V

*

,

MEETINGHOUSE LANE

SOUTHAMPTON, L. I., N. Y.




'

•

J

structure

in

need

of

The

conservative

must

preach

primary aim of all

ernmental—regulation of the
nomic.

life

v

i.'»s

of

>H

-r

the

;

and

•

—

|

New York 4, N. Y.

~

781 FIFTH AYE., N. Y. (Sherry-Netherland Hotel)

=

Plaza

Chicago

j

E

other

Detroit

•

Pittsburgh

Beverly Hills, Cal.

'•

•

Miami Beach

Geneva,

5

1-2220
•

Switzerland

Coral Gables
•

•

Hollywood, Pla.

Amsterdam, Holland

Z

E

Buenos Aires, Argentina

a

dras¬

tic repairs."

that "the

Exchange

BOwling Green 9-8420

E

^

Stock

60 BEAVER STREET,

.

|

in¬

competence rather than signs of
social

York

New

leading stock and commodity exchanges

Cl

SS

Telephone DIgby 4-7800

Members

jjj

E

E

1656

H. HENTZ & CO.

I

S2
are

Established

gov¬

|
|

Underwriters and Distributors

|

of Corporate Securities

=

|
|

eco¬

community

^iiHiiiHiiiiiimiiiiiiiiiiiiiiiiiiiitiiiiimmimiiiiiuiitiiMHiiiiittiiiiintiiiiiiuii

*

Volume 132

Number 5456

.

.

The Commercial and Financial Chronicle

.

feel that he has been admitted to
won't

From

Ahead

permit of

A

Washington

any

stay here is wholesome.

of the News

seems

from heart attacks and leave their widows well
coming

At rny age,

I find

score,

which I

can assure you

not to be

cn

The

now.

reason

introduced

made for

to,

reservations

and

■■■

Kennedy is

/

bill won't be reduced

nounce

pany.

been

..

neth
Carlisle

Bargerou

a

first visit

our

we

felt

we

had to

back

come

we

or

M.

fred
&

Dan

is

Annual
don

Stone

show

a

Kennedy is

This year an old

friend wrote her apologies for not being here this year because she

wanted to make

trip to Europe and wanted to

a

save

Kennedy's

Ocean House to die in.

There

minority.

and retired

old

here, too, but they are in the
A sprightly 67-year-old women accosted one of these
are

the veranda overlooking the ocean the other day.

cn

;.r

.

"I see where Thomas Mann is dead.

The old

man

"What's

so

that

about that.

so,"

was

80 years

asked

67-year-old

the

woman

I don't

see

in

why

of

Stock

surprise.

"I

they

fabulous

man,

Firms meeting of Board of Gov¬

membership;

ernors.

and
Hohnsbehn, Secretary.
Treasurer;

Nov.

19,

New

1955

(New

Co., Inc.,

made

offering of

secondary

a

Co.

common

stock

$79 per share, with
concession of $1.15 per

Nov. 27-Dec. 2,

Calif.

FRANCISCO,

SAN

to

the

staff

Montgomery
the

New

Stock
was

&

Sutro

of

York

and

&

—

1955

(Hollywood,

Investment Bankers Association

Convention

annual

dealer's

at

San Francisco

Robert

Thomson

Harris

previously with E. F. Hutton

with

FRANCISCO,

Calif.

and

Robert

Pearce

T.

become

have

(Special to The Financial Chronicle)

SAN

—

B.
connected

FRANCISCO,

Henry

w

Grady

is

Securities

Somerset

Mutual Fund Associates, 444

NEW

$4,350,000

Chicago, Burlington & Qnincy Railroad
Equipment Trust No. 2 of 1955
3y8% Equipment Trust Certificates

invited.
or inside "horse races" such as
They do have an orchestra that plays

They don't have bingo games
the other resort hotels do.

classical music and about twice

a

week there

are

To he dated

September 1, 1955. To mature $145,000 each March 1 and
from March 1, 1956 to September I, 1970
Issued under the

funny and

you often ask yourself why you are like that,
greeted by the old women and called by name makes one

were

appears

placed
and

no

as

a

matter of record only.

privately

public

through the

offering

These

undersigned

is being

,

securities

'

made.

$1,000,000

J. Armstrong Co* Inc.

Philadelphia Plan with

20% cash equity

church whether they are or not.

This advertisement

September 1

dances for which

dresses. At Sunday morning breakfasts the women
wear hats to give the impression they are going to

maturities and yields,
3.025%

March

1, 1966

3.13%

3.023

Sept.

I, 1966

3.15

March 1, 1962

3.05

March 1,

1, 1962

3.03

'March 1,1963
1,1963

March

1,1956

2.63%

March 1, 1961

Sept.

1, 1956

2.73

Sept.

March

],1957

2.80

Sept.

I,1957

2.85

Sept.

March

1, 1958

2.875

Sept.

1, 1938

2.90

Sept.

March

1,1959

2.925

Sept.

1, 1939

2.93

Sept.

March

I, 1960

3.00

March 1,

Sept.

1, 1960

3.00

Sept.!

These Certificates
received

by

us,

are

1967

3.13

Sept.

I, 1967

3.13

3.10

March

1, 1968

3.15

3.10

Sept.

1, 1968

3.15

March 1, 1964

3.125

March

1,1969

3.13

I, 1964

offered

subject

to

1, 1961

3.125

Sept.

J, 1969

3.15

1963

3.15

March

1, 1970

3.15

1,1965

3.15

Sept.

I, 1970

3.15

subject to prior sale, when,

as

and if issued and

approval of llie Interstate Commerce Commission.

SVi% Junior Subordinated Notes
Due

July 1,1965

Salomon Bros. & Hutzler
-

Drexel & Co.

Union Securities Corporation

Stroud & Company

Dean Witter <Sl Co.

Incorporated

August 18, 1955
August 18, 1955
i

! r

i




••

■i-\

u

J F; i

i

'■

i

with

Corporation

ISSUE

properties. Once a season she throws a party
in honor of Kennedy's birthday and all of those who have made

Calif.
now

310 Sansome Street.

Street.

Montgomery

Company.

With Somerset Sees.

(Special to The Financial Chronicle)

SAN

able to manage her

are

Holly¬

wood Beach Hotel.

share.

With Mutual Fund Assoc.

407

members
Mr.

Exchanges.

Co.,

of

Street,

ceeded to take law and become admitted to the bar in order to be

the "inner circle"

and

party

Florida)

(par $40)
a

cocktail

modore.

Morgan Stanley & Co. on Aug.
16

York

and the

here, not in the octogenarian class

City)

York

dinner dance at the Hotel Com¬

—

would

engaged in amiable conversation.

were

woman

Y./

Exchange

Seeurily Traders Association of

Stuart A. Thomson has been added

Miss Ethel Donaghue is perhaps in her early 50's. She is
bachelor woman whose father left her vast enterprises. She pro¬

A.

firm's

Irwin,

C.

(New York, N.

Association

40,00/0 shares of Seaboard Air Line

by far.

but to be

the

hold

long."

last I saw of the two

everybody
mostly all

Nov. 16-18

are

old."

anyone

"Well, I hope to live to be 120," replied the old
a

Officers

Club—to be preceded
cocktail party Sept. 21.

a

•

I'm eighty."

wouldn't want to live to be eighty.

Ther° is

by

York

retorted:

old

want to live that

He

Said

New

day at the Omaha

Country

will acquire

the

Bankers

Investment

field

annual

Russell, President, who

N.

Paul H.

the

joined

Exchange

(Special to The Financial Chronicle)

men

she:

will

in

Exchange.

James

Leroy

Sutro & Co. Adds

/

room.

personal friend.

a

Building,

membership

at

by nurses and chauffeurs and mink coats they sit
around, draw in the ocean breezes, play bridge and the cross word
puzzles occasionally, but mostly sit. A wheel chair in the lobby is
Cadillac in

L.

(Denver, Colo.)
Stock

meeting of Board of Gov¬

Nebraska

RR.

Accompanied

a

has

Jamieson

Building.

as

H.

of

Sept. 22, 1955 (Omaha, Neb.)

Secondary Offering

Calif.

FRANCISCO,

Charles'* R.

Russ

To all of them

To Be NYSE

(Special to The Financial Chronicle)

SAN

Firms

Jamieson

L.

wives

It's

Philadelphia 30th
Field Day, at Hunting¬
Valley Country Club, Abington, Pa.

Bond Club of

CLEVELAND, Ohio —On Aug.
25 Gottron, Russell & Co., Union

Stock

Al¬

—

with Hooker

now

H.

Joins

ness,

a

has

ernors.

a

Fay, 221 Montgomery Street.

of

"Is

an¬

Gofiron, Russell § Co.

of

Add

FRANCISCO, Calif.

staff

common

staff

Incorporated,

(Special to The Financial Chronicle)

SAN

majority of our
past 70 and into their 80's. Their hus¬

men

Tadashi

appointed manager succeed¬

Commerce

him.

in industry, and although they may have accompanied their
here, or at least dropped in to see them on week-ends, the
widows still come, have been coming some l'Or as many as 50 years.

the

to

Investors

Hooker & Fay

would

fellow guests are women
bands made money, in the law, in medicine,.in the brokerage busi¬

added

been

—

1716 Broadway.

But the point I started out to make is that the

old

City,
Ishida

New. York

that

(Philadelphia, Pa.)

Sept. 21-23, 1955
,

Ken¬
Hicks and Orval D. Ogle

Financial

Court

Justice Felix Frankfurter.
Kennedy is a Harvard
nothwithstanding that his hotel and hotel cottages accommocale ordinarly some 600 people, a guest never arrives or leaves,
regardless of the time of night, that he and his wife are not on
deck to see you in or off as the case may be.

W.

have

and

New

Broadway,

Association

penny for writing this.
days of challenging propositions and how to succeed,
hotel men and Harvard graduates might well take a lesson from
Kennedy instead of going down to Washington kowtowing to Su¬

as

for¬

was

(Special to The Financial Chronicle)

But in these

After

*

Sept. 16, 1955

Nomura Securities Co., Ltd., 61

merly with H. L. Jamieson Com¬

SACRAMENTO, Calif.

of Gov¬

ernors.

Two With Financial Inv.

operators in the country and I am sure that my

offend

Fall meeting oi Board

For Nomura in NYG

ing Shoshi Kawashima.

of the most amazing hotel

one

(Chicago, 111.)

Investment Bankers Association

owner.

25 yeais.

preme

He

Sept. 16-17

Mgr.

Asso¬

secur¬

a

were

with Clem Kennedy, the Presi¬
We were introduced by peo¬
ple who had been coming here every year for

man

conducting

Street.

Richmond

we

us,

dent and

is

Barton

ities business from offices at 2012

have been doing this is that the first year we
were

Tadashi Ishida

Calif.—Wilbur

SACRAMENTO,
A.

first wife.
coming here for about three

vacations

our

Opens

!■-

<Mackina«

National Security Traders
ciation annual convention.

(Special to The Financial Chronicle)

my

We have been
years

to be the next door to Heaven.

W. A. Barton

is three

myself here at the New Ocean

House, one of the younger set. This goes for
my wife who is reasonably younger but not so
yowg as

ing at Park Hill County Club;
Sept. 11-14, 1955
land, Mich.)

10

have most of the wealth of the country.

Bond

Denver

away

been

1955 (Denver, Colo.)
Club annual out¬

18-19,

Aug.

Field

Investment

In

from here smiling and apparently happy. Ordinarily
saddening but to the old people who have
coming here so long and enjoying the rare comforts of life it

went

for

are

EVENTS

provided. There were attentive children and grandchildren around
her but she had never been a burden or a problem to them. She
it would have been very

widows

COMING

member of a

room to ours today
they carried out an old woman
old on a stretcher an<J under an oxygen tent. She had
been coming here for 35 years, enjoying up until her dying day the
comforts that only a hard working successful husband could have

run

these

a

years

into inescapable proof of the statistics
which have been bandied about for years that husbands struggle
success, die
fixed and that

It is like being

In the next

90

SWAMPSCOTT, Mass,—Your Washington correspondent is on

vacation, but he has

ultra exclusive club which

some

taint of scandal.

church.

By CARLISLE BARGERON

13

(677)

The Commercial and Financial Chronicle

(678)

14

.

.

Thursday, August 18, 1955

.

Connecticut Brevities
Underwood Corporation has, Colt

NSTA

Notes

made

plans

tract

of

to

purchase

large

a

land,

including part of
Field, in Hart¬
The company has tentative

Brainard Aviation
ford.

plans to construct a new plant on
this site, and may at some time
AD

LIBBING

also

move

We

new

location.

compliment Hal Murphy of the "Chronicle" who informs

its

office

main

the

to

Manuscripts

Booklet CN

—

publishing,
pro m o t i n g and distributing
books, with particular emphasis

King
has

Data

Book

(condensed

of Statistics, Ameri¬
Association, 420 Lex¬
Avenue, New York 17,

—

Annual

statistical

weeks.

Live

With

Your

would

you

yearbook—American Gas Asso¬

to

now

Harold

B.

a

Smith

appreciate

New

call

a

contract.

How

about

if

Invest¬

B.

Schuster, 630 Fifth Avenue,
York
20, N. Y.
(cloth)

Unionism,

1932-1954

Cornell

Labor

of

Positive

Relations,

♦Adams.

University, Ithaca, N. Y.

Program

Bunn,

for

1955-1959—Discusses four costly

mistakes made

common

by

*

Pershing & Co.

120

Broadway, New York 5, N. Y.

of

money-credit

Research

New

James
Samuel

of

Organization of the

tive Branch of the

Government

Fiscal

Developed

—

Horning,

♦Jolley,

United

♦Lee,

Broadway,

(paper), $1.

for hundreds

f

•

considered.
on

l

we

of others.

Wilbur

Alonzo

H.

New

Board

and

I

]

K. Y. Cotton
NEW
Miami

Bollywood,

New

York,

Detroit

Geneva,

150-acre

a

of

tract

The company

which

York,

N. Y.

John

J.

William

Edward
Walter

F.

Harold

Charles

♦Schlicting,

Troster, Singer & Co.

New

Mountain States Sec. Corp.

Denver,

Colo.

Pacific Northwest Co.

Seattle,

Wash.

B. W. Ftzzlni & Co.

New

Livingstone, Crouse & Co.

Stone & Youngberg

J.

Robert

Remington, Clifford G.
Roob,

F.

C.

York.

Detroit,

fab¬

is

and

Screw

N..Y.

Woodcock. Hess & Co.

Philadelphia, Pa.
Chicago,

Dominion Securities Corp.

New

Boenning & Co.

Philadelphia, Pa."

Tegtrticyer & Co.

Chicago, 111.

111.

Lynchburg.

Wagenseller & Durst Inc.

Los
New

Tegeler,

Jerome

F.

Dempsey. Tegeler & Co.

Thorsen,

Lester

J.

Glore, Forgan & Co.

Seattle,

'

Y.

N.

Va.-

/

Merrill Lynch, Pierce Fenner& Beane

New

York.

N. Y.

New

York.

N.

John

L.

H. M.
J. R.

S.

Weigner, Arthur

Byllesby & Co.

Houston,
New

York,

N.

Y.

Singer, Bean & Mackie

New

York.

N.

Y.

♦Welch,

Edward H.

Sincere & Co.

Inc.

Williams,

Robert

Chicago,

:

Starkweather & Co.
C.

•

•

4,
•

N.

Beverly

Hills,

Switzerland

Amesterdam,

Uranium

Gables

Holland




CaL

RAPID

New

Weeden & Co.

E.

S.

Dak.—Morris

Brickley is engaging in

curities

business

from

a

offices

se¬

in

the Harney Hotel under the firm
name of Uranium
Exchange.

to

Interstate

the

by

The

certificates will

be secured

by the following equipment, esti¬
mated

to

cost

horsepower
10

$5,490,000:

10

2,400

Diesel-electric

units,

1,200

horsepower Diesel-elec¬
switching locomotives and 10
gallery type Z suburban cars.
tric

Associates
&

and

With

in

the

Co.;

offering

Union

Stroud

&

are

Securities

Inc.

Co.,

111.

York,

N.

DETROIT, Mich.

S

—

ley, Bennett & Co., Buhl Building.

subsidiary of New

Haven

has

&

decided

of

lines

the

DETROIT, Mich.

Forsberg

associated

members

the

of

berg was formerly with
Hague, Noble & Co.

Smith,
-

another

sub¬

New

Haven

Road

*

with

connected

west

Stock

F.

>.

Exchanges.

from

offices

Joins

,

King Merritt

(Special to The Financial Chkonicle)

PONTIAC, Mich.

intra-city,

Schnitker-is
ritt &

now

—

Robert W.

with

King Mer¬

Co., Inc.

if

With State Bond &

Bond

Aircraft

Division

Corporation.

Mtg.

(Special to The Financial Chkonicle)

NEW

of

North

The

ULM, Minn.—William G.
III,
is
now
with
State

and

Mortgage Company, 23

Minnesota

Street.

Primary Markets in

,

.'J

CHAS. W. SCRANTON

&

CO.

Exchange

CONNECTICUT

Perry Street under the firm
of Dennis & Co.

at

SECURITIES
26

name

J.

*

Members New York Stock

WHIPPANY, N. J. — Alexander
Dvoretsky is engaging in a secu¬

.

Winckler Co., Penobscot Buildipg,
members of the Detroit and Mid¬

its

sell

&

Aircraft

Charles JH.

—

become

Building,

Akers

Whitney

has

with Don W. Miller & Co., Penob¬

become

Hartford

to

and

if

,

story building constructed in 1941
have been leased by Colt's Manu¬
facturing Company to the Pratt

v

Dennis & Co. -Opens

business

E.

u s a n

DETROIT, Mich. — Clarence. T.
Carne.y and Harold E. Morris have

Y.

Chicago, 111.

rities

.

Manley, Bennett

r-

New Haven

Exchange Opens

CITY,

subject

Two With F. J. Winckler

.

Transporta¬

will continue to operate
lines.

United

Y.

Pittsburgh

Coral

Issuance of

is

Texas

Bros.

Morton

Jack B.

certificates

Y.

♦Weiss,

♦Wielar,

the

priced to yield

to 3.15%.

Phildadelphia. Pa.

Phillips Invest. Co.

Lehman

2.65%

scot.

The upper two floors of a three-

Mo.

National Quotation Bureau, Inc.

Charles

-

_

Cal.
Conn,

Waldron, Stanley M.
E.

truck

sidiary

Haven.

111.

are

from

(Special to The Financial Chkonicle)

England

*

Walker,

Louis

The certificates

March

1. 1970, inclusive.

Detroit Stock Exchange. Mr. Fors¬

bus lines which provide inter-city
service in Connecticut and neigh¬

its

Angeles,

Chicago.

semi-annually,

1956 to Sept.

if

if

New

Wash.

St. i Louis,

equipment trust certificates

mature

(Special to The Financial Chronicle)

subsidiary ;of
has
recently
occupied a new

boring states. These lines have be¬
come unprofitiable due to lessened
traffic.
The company will retain

Salomon Bros. & Hutzler

Clias. W. Scranton & Co.

E.

r

Philadelphia,{ Pa.

Harper & Son & Co.

New

Railroad,

Raffel & Co.

Win. P.

Equipment Trust No. 2 of 1955

a

located in West Hartford.

York,

.

Y.

N,

Mich.

Strader, Taylor & Co., Inc.

B.

•

York,

R.

Donald

RR.

Corpo¬

as a part of
$650,000 development
The company's plants

tion Company, a
:t

Francisco/ Cal.

A.

and

Swan has joined the staff of Man-

in

use

present

The

New

York.

Hutzler

(Special to The Financial Chionicle)

Inc.,

*

San

.

Hugh

Leslie

are

Salomon Bros. & Hutzlcr

Ludwell

♦Weatherston,

Exchange

program.

N. Y.

Quinn,

of

1,

&

offering $4,350,000
Chicago, Burlington & Quincy
are

*

*

Holo-Krome

Chicago, 111.

N. Y.

S. R.

build¬

distri¬

but
will
use
the
building instead.

Bros.

associates

located

precious metals for

the

York,

P.

new

and

Gerlificates Offered

new

a

for

Va.

York.

Stuart

use,

Corp.;

construction

Bloomfield.

Philadelphia) Pa.

New

Porter,

a

Burlington Equipment

presently

plant addition which will be used

N. Y.

New

♦RaffeC
,

York,

McLaughlin, Cryan & Co,

M.

of

warehousing

former Schick

Hartford, has announced

completed

Birmingham, Ala.

John J. O'Kane, Jr. & Co.

C.

for

bution

Drexel

*4*

Company,

Veeder-Root,

N. Y.

J.

Harold

ing

person¬

unchanged.

Exchange Bldg.

Beach

Fla.

on

ration,

F.

Quinn,

exchanges

YORK
•

have

owners

dentistry and industry.

♦Mr. and Mrs.

Chicago
'

other

plant

ricates

Pa.

John

G,

construction

With Don W. Miller Co.

John

Jr.,

Josef

Trade

of

New Orleans Cotton

for

The

O'Kane,

♦Walllngford,

Exchange,

new

i'fi

Ney

plans
in

Cal.

McLaughlin,

Robert

Members

Commodity

John C. Legg & Co.

Taylor & Co.

Pizzini,

H. Hentz & Co.
Exchange

111.

Philadelphia,

J.

William

♦Phillips,

1856

'

Chicago,

Drexel & Co.

Hendricks & Eastwood, Inc.

♦Swan,

Exchange

Ga.

Strader, Taylor & Co., Inc.

William

♦Summerell,

Chicago

C.

ned

Atlanta, Ga. ■'
Atlanta,

J.

Strader.

Exchange

The

tion has been started

Wash., D. C.: 1010 Vermont Ave., N. W

Stock

Corporation of Cleve¬

Sji

M.

located in

N. Y.

A. G. Becker & Co.

McCullen,

♦Scattergood,

Stock

Clevite

J.

Mo.

York.

to

Lynchburg,

Blvd.,Hollywood 28

Cotton

Louis,

New

.

Inc.,

out of the

recently moved

Pitney had previously plan¬

area.

Corpora¬

cept for top management,

Mo.

Angeles.

Robinson-Humphrey Co.

McClintic. Jr., William N.

♦Scheuer,

York

St.

"

factory

Schick,

from

feet

which

,

N. Y.
N. Y.

Louis,

a

Texas.

York,

Los

as

N. Y.

York,

St.

j

purchased

Commerce Commission.

Aviation

was

nel will remain

New

Dempscy, Tegeler & Co.

Wallace

heat-treating, receiving, ship¬
ping and storage. A second addi¬

Vantage Press, Inc., 120 W. 31 St., N. Y.

York

N. Y.

111.

New

Reinholdt & Gardner

Co.

if

amounting to about 108,000

authorization

if

Atlanta, Ga.

In Calif.:6253 Hollywood

New

Co.

if

New

Justus

♦Saunders,

American

&

sets.

substantially.

land, Ohio.

Mich.

York,

television

indicated that production will con¬
tinue in Wallingford and that, ex¬

St. Louis, Mo.

Meeds

color

com¬

Wertheim & Co.

today for

New

York,

Towbin

new

Robinson-Humphrey Co.

It's free.

Establised

Worth.

New

Unterberg,

several

of

♦Markham, Edwin J.

have done
All subjects

Write

Fort

A. C.

Sterne, Agee & Leach

Especially seeking books

welcomed.

Chicago,

Win. N. Edwards & Co.

Wellington Hunter Associates

Pauley, Milton

business and financial topics.

authors

booklet CN.

In

Watch

&

♦Martin,

Looking for a publisher? Learn how
we
can
publish, promote and disas

National Quotation Bureau. Inc.

Stifel, Nicolaus

Edward

♦Pearson,

INVITED
tribute your book,

H.

Texas

New

E.

if

recently

Salomon

recently formed
subsidiary of R. Wallace &
Sons, Walllingford, has been sold

Angeles, Cal.

Detroit.

Robinson-Humphrey Co.

McGregor,

MANUSCRIPTS

1

Bert

L.

C.

Wellington

Knob, J.

BOOK

w

Earl

John

Dallag,
Los

R. C. O'Donnell & Co.-

C.

The

Louis, Mo.

Dunn & Rollins

Laird, Bissell

Miss Malinda

versity

York 27, N. Y

A.

con¬

rolling mill machinery.

six

employment level of
is expected to be in¬

1,100

tion, whiich

Ga.

Atlanta,
St.

for

present

creased

Texas

Houston,

Inc.

has
space

to

Y.

N.

N. Y.

Allyn & Co.,

begun

has

if

for

if

York.

us

if

Pitney-Bowes, Inc. of Stamford

3(8%

Mo,

York.

Fusz-Schmelzle & Co., Inc.

John

♦Krisam,

2960

D.

Lex

Jolley,
Kipp,

Administration—Columbia Uni¬
New

of

the

including
a
governor
automobiles, a self-regulating

*

Nations Technical Assistance

Press,

S.

Thomas

Jr.,

♦Hunter,

Policy in Under

Countries

A.

Firmln

Louis

Hecht,

Printing Of¬
fice,
Washingtop
25, *D. *Ct
(paper) 35c.
'
1
*

Taxes and

John

Jr.,

Hagensleker,

Government

F.

Landon

Y.

N,

New

Dallas, Rupe & Sons, Inc.

H.

York,

New

Paine. Webber, Jackson & Cur

J.

Charles

Glbbs,

E.

D.

Company

automatic

products,

about

W. E. Button & Co.

>

feet.

square

on
a
new
plant which,
completed, will cost about
$1 million, including new machin¬
ery. The company is a producer of

*

Clock

manufacture

The

Goodbody & Co.

Crockett & Co.

Lawrence

♦Greenberg,

—Superintendent of Documents,
S.

Harold

Ga.

Texas'

Louis,

St.

Edward D. Jones & Co.

French,

Execu¬

New

J. W, Tindull & Co.

Gambol

♦Fusz,

W. Pizzini & Co.

B.

Fisher,

committee report of Commission

U.

«

Haven

ponents

Atlanta,
Dallas.

C.

Dilworth,

Defense—Sub¬

F.

City

Clement A. Evans Co.

Ralph

♦Freear,

>

for

.

electric clock and electronic
/

James

Robert

♦Dunn,

Special Personnel Problems in the

P.

Gordon

A.

DeShong,

I

Department

the

ISLAND,

MACKINAC

Stifel, Nicolaus & Co.

Cleaver,

♦Diehl,

Santa

Calif.

HOTEL,

Dallas Union Sec. Co.
B.

V.

W.

Colwell,

♦Deppe,

CC-8, Investors
Barbara,

Co.,

R.

Walter

John

♦Dean,

de¬

velopments and 23 stocks for
growth and appreciation — ask
for free booklet

GRAND

space

struction

of $599,000 for the first year.

Committee

Advertising

Firm

Edward

♦Crockett,

investors; supply vs. demand for
common stocks; long range sig¬
nificance

NSTA,

Bambenek, J. Rits
Bradley,

Investment

OF

leased

if

the

on

Thomaston The Hallden Ma¬

In

chine

compared to the original estimate

c/o

Name

(paper) $4.

on

profit

a

shown

was

fixed

MICHIGAN, SEPTEMBER 11 TO 14, 1955

H. Jen¬

sen—New York State School

industrial and

TION

(volume 5

the series)—Vernon

yet

in

be

to

before
depreciation and
charges
and
after
fixed
charges the cash loss was $147,476,

King

REGISTRATIONS FOR 22nd ANNUAL CONVEN¬

Industry

if

electric

Company has announced plans for
ADDITIONAL

Metals

space

The

42,000

will

Firearms

months
Charles

$2.95.
Nonferrous
in

operations

$153,227

SMITH, Chairman

National

amounts to

square

expected

are

limited

mercial ad?
HAROLD

and
well

is

The

during
the
fourth
quarter of this year, and the new
rolling mill should be available
early in 1956. With its presently

com¬

a

facilities

schedule.

furnaces

in position to confirm

are

modernizing

its

of

operation

be called

you

of

program

ahead

of

occupy

floor.

ground

report to stockholders that

expanding

will pass

we

Can

ments—Linhart Stearns—Simon
and

are

part of this undertaking?

ciation, 420 Lexington Avenue,
New York 17, N. Y.—$2 a copy.
How

we

make you

last year's total within the next

I

Facts

Charlie,

its

Corporation,

operations Jan.
1,
in its first semi¬

reports

annual

a-

Steel

began

1955,

of

Yea r-Book

you, and

appears

few

N.Y.—50c.

Gas

which

of the week.

man

It

Gas

ington

Convention

:1 the

sum¬

—Bureau
can

the

Supplement.

of gas industry statistics)

mary

page
back cover

m

Northeastern

City,
ad for

York

half

on

*

Charles

of

New

a

j grateful to

%

Cas

King

Co.,

firm

our

—Vantage Press, Inc., 120 West
31st Street, New York, N. Y.

&

taken

his

business and financial topics

on

Charles

us

describes services of

to

when

■

Book

-Museum

continue

,
New York
Hartford

—

—

REctor 2-9377

jAckson

7*2ot>9

Teletype NH 194

-

-

Number 5456

Volume 182

The Commercial and Financial Chronicle

..

.

(679)

15

f-V

LETTER TO THE EDITOR:

and

sometimes

modest

SEC Proposals Described as
Death Sentence to Small Business'
Correspondent in Seattle, Washington, writes that
tions of the

funds

Chronicle:

regulations
the SEC, aimed at small busi¬

The newly proposed

which

concerns

ness

funds

A

mining

proposition

slowly—over

so

is

mining developments, and to
small business in general.

new

Under

the

(c)

paragraph

new

proposed regulation requires that
all funds from public financing of
enterprises,

new

shall

This leaves
nothing with

pounded.
company

im¬

be

the new
which to

it

trick;

monopolize the field.

process

of public financing, appear
spell out a "death sentence" to

the

does

a

growth—not

Mines

develops
it

of time:

period

a

quick creation.

a

not financed and devel¬

are

business.

a

strument with which to

"squeeze"

all

new,

independent oil and

men.

The result has been

amazing: public financing of new
enterprises in California mining
and oil, has completely "dried up,"
and
the
"Golden
State"
has

dropped from its long-time lead¬

ership in
down

SEC

want

de¬

to

ington

moving

nopoly

of

pany's inception and prior to the

vestors

actual

money

development of its proper¬

ket.

ties.

Then too, why should any regu¬
lation demand that 85% of an is¬
of

sue

securities

months?
time

in

180

sold

be

six

short
sizable

very

a

of

any

amount of mining

when
no

the

funds

selling

a

with

allowed

the

on

carry

a

stock, especially
offering company has

stock

which

to

tremendous job of
issue and starting

company.

Thus, free enterprise financing
of

mine

new

other

developments,

ventures,

would

be

and
com¬

pletely frustrated under this regu¬
lation.

"

,

able to finance their

new

de¬

velopments without public offer¬
ings

but

of securities,

panies, financing

as

by public offerings,

new

com¬

they develop,
are

IN THEIR TRACKS:

STOPPED

impounding

other

mining

publicly

—

companies

only

because

thrifty

Ameri¬

great

investors

ginning and
they needed!

gave

them the

be¬

start

A study of the his¬

American

Mining Com¬

all—not
This

prise

part

"big

money"

capital

has

go.

cau+ion

money"

on

leaves

scheme.

of the few

one

whereby the,
may

person

ways

it?

If

to

free

Offered

as a

Speculation

FIGHT!

mit views and comments upon

stroy

is

lation A and

Regulation D into a single integrated exemp- \
regulation for both domestic and Canadian securities
and, among other things, the inclusion in the new regula¬
tion of certain special requirements with reference to ;
companies in the promotional stage. A
:
•" i

tive

EDITOR'S NOTE:

The Commission's

discussed in detail in the editorial "Still

appeared

on page

proposals

were

Reaching" which

3 in the Aug. 11 issue of the "Chronicle."

First Calif.

Shearson, Hammill Adds

Adds

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

enter¬

resisted.

much

LOS ANGELES, Calif.—John H.
is
now
connected
with

Shearson,
South

Hammill

Grand

&

520

Co.,
He

Avenue.

was

previously with Sutro & Co.

LOS
W.

ANGELES, Calif. —John
Tolly has become associated

with
647

First

California

Company,

South

Spring Street. He was
formerly with Hill Richards & Co.

the

of

believe

we

should—we

in

must

Write

the President,
Washington D. C.;
Senators and Repre¬

business

by

regulations.

Now'we

are

whether

small

American way of life

our

power
we

Welch Industries, Inc.

under the

up

slanted
testing

testing!

150,000 SHARES

pressure

of cumulative

are

(A Delaware Corporation)

wealth.

This is

a

last

give

for

OF COMMON STOCK

call!
What

do

reason

they

such drastic and destructive regu¬
lations? No reason!—Only an ex¬
cuse!

They

say:

louo securities

and

some

man

a

unscrupu-

might sell

reason.

confidence

the

men

$2.00 Per Share

some

This is

(Par Value $.50 Per Share)

an

The crooks
OUT

are

of

securities selling

business to¬
No line of business in Amer¬

day.
ica

today

and

so

is

strictly

so

A

not

misled

be

the

by

ferrous

metals.

The

non-

Company's plant is

ex¬

located in El

ofered by bureaucrats

doing
the bidding of Big, big, business!

Washington Natural Gas Company

Company devoted to the reclamation,

processing and resale of ferrous and

guarded

conservatively handled. So,

us

cuses

Paso, Texas.

[ Signed1
A copy

A. P.

Seattle. Wash.

Common Stock

this proposal.

proposal, set forth in detail in Securities Act
Release No. 3555, contemplates the consolidation of Regu¬

en¬

House,
your

Aug.

10,

of the Offering Circular

obtained

may

be

from

1955

(Par Value 10p Per Share)

G. W,

With Gregory &
Washington Natural Gas Company leases some 18,500 acres, in
Randolph, Upshur, Webster, Lewis and Barbour Counties in West
Virginia.
It is

engaged in exploring and developing these properties primarily

properties through

a

production from certain of the above

pipe line in which it has

a

one-halt interest.

Sons

York

New

Jr.,

Stock

that

G.

become

has

the firm

as

Exchange,
Wilmer

HOUSTON 2,

an¬

associated

with

Manager of its munici¬
Mr.

formerly New York
Manager for Cruttenden & Co.

Warren

was

711

Copies of the Offering Circular may be obtainedfrom the undersigned
only in States in which the undersigned may legally distribute it.

Houston

Frank

B.

Inc.

35 Wall St., New York 5, N. Y.

Davis,

of the Offering Circular relating to the offering of 238,632

copy

Shares of Common

Slock of Washington Natural Gas Company.

passed
heart

away

Aug. 11

following

a




Colo. —A.

ners

Co.,

Brokerage

has been

Building,
Telephone.

send

S.

NAME

KrakADDRESS

First
:

Please

University

succeeded by

Securities of Denver.
are

Arthur

Allen

M.

me

a

copy

Welch Industries, Inc.

attack.

DENVER.
over

Name.

Address

Company

Texas

in

partner

Now First Sees, of Denver
a

2,

&

Life Building

Fahnestock & Co., New York City,

August 16,1955
Please semi"me

Clark

C&I

B. Frank Davis

Barrett Herrick & Co.,

TEXAS

Slaight,

pal bond trading department.

Slaight

& CO.

C&I LIFE BUILDING

711

Gregory & Sons, 72 Wall Street,
New York City, members of the
nounced

for natural gas. It markets gas

WARREN CLARK

Slaight, Jr. Now

Price $1.25 Per Share

»

The

sentatives; urge them to investi¬
gate these subtle schemes to de¬

let

238,632 Shares

proposed revision and consolidation of
Regulation A and Regulation D has been extended from
Aug. 15, 1955 to Sept. 15, 1955 following the receipt of
several requests for additional time within which to sub¬

creeping Fascist

talk

excuse—not

offer to sell nor a solicitation to buy any
of these securities. The offering is made only by the Offering Circular.
an

Commission's

line, should

bad stock to the public.
This announcement is neither

that

be

every

we

Yes,

of moderate

in

so,

and

gain possible security

Exchange Commission has an¬
filing written comments on the

Sickel

should

enterprise—but do

for

left

blow

We

stand

opportunity;

and

American Way of competitive free

can

type of speculative invest¬

is

death

tve

venture-capital investor

unprecedented

means

"big

venture

"big

of

for this
ment

started by

proposition

extreme

the early
and

been

until
the

mo¬

few.

unite to stop this

write

Generally

the

where, and

White

made

of

fact

greatness

Small business enterprisers every¬

excevtion, they have started small
—with the modest investor.
They
have seldom

to

mining

panies shows that, almost without

This

Big outfits, already in the field,
are

and

grown

waits

the

terprise, dedicated to the good of

mar¬

cans—invested in them at the

money"!

of

sufficient

not

Great

of

spite

economic

have

do

ventures, provide an op¬
portunity for the small man to

tories

in

Securities

the

out

the result of competitive free

Mining

small

Wash¬

at

wipe

Small in¬

to play the big stock

invest.

to

enterprise?

financed

have

days is

the selling

in

an

would

enterpriser in favor

America's

The

nounced that the time for

a

Administration

present

invest in
start

what

cleverly contrived
scheme to destroy the traditional
free enterprise method of public
financing; once more we find the

and

low-priced stocks at the

scale—from

to be

appear

free

investor of his right to

small

the mining indus¬
suffer—this time on a

to

the

overhead, much of
begin at the com¬

place far

a

once more

is

why should SEC want to deprive

must

to

and is steadily de¬

national

So,

ing fees; insurance; andministratransportation expenses;
general

mining,

the list,

try

explorations
and development, into production.
Stock is sold as money is needed.
through

neat in¬

mining

discovery,

should

Proposed
Reg."A"and"D"Revisions

men

California; it gave them

tive costs;

which

Big business

movers

u

For Comment On

state

in getting this
regulation passed in

prime

ally, by study, trial and error from

stroy this free enterprise process?
Why should they want to crush
the small enterpriser?
Then too,

fees;

under

'

i,

It has been

clining lower and lower!

Why

SEC Extends Deadline

the

enterprise public
new.

California

in

oped in six months, as the regula¬
tion postulates. They move gradu¬

organizational expenses: legal
commissions; office rent;
technical, geological and engineer¬
pay

impounding

from free

tried

prustrating

kills their venture before it starts,
and leaves "Big Money" free to

the

in

are

their

of

financing, is not

out

of

idea

small

new

Editor, Commercial and Financial

of

-

The

and

new

enterprises be impounded, will
independent promotion of small business, and will be
especially fatal to new mining developments.

halt

a

begin- *

regulations, over a period of years,
with
devastating results to

regula¬
SEC, particularly the requirement that all funds

public financing of

the

at

fling!

were

from

fortune, frorh

a

investment

S.

Kaplan.

Part¬

Krakover

and

CITY

of the Offering Circular relating tQ

The Commercial and Financial Chronicle

(680)

16

.

Thursday, August 18, 1955

.

.

that
"News-Is-Out" Trouble*
they have been points. The company is gen¬
lolling a score of points under erally regarded as a candidate
General Motors and Rey¬
their peak prices and ready, for better dividend treatment
nolds Metals, which carved
on
present payments are out
any weakness in the group, since
spectacular gains earlier
to do joust with their year's covered more than twice by
in the year
By WALLACE STREETE
culminating in
lows.
earnings despite the charges the expected stock
split pro¬
incident to opening up more
posals, were suffering this
doldrums real- though the lead has been senstores
with
a
score
of
new
jssues took their
fact

THE MARKET... AND YOU
The

chemiJ,

summer

this

in on the stock market
week and both volume

and

the

ously whittled down all this

]y set

month.

the

of

list

week midst
rather
widespread expectaKennecott, tjons tha( a stock split was

'

bumped bottom on the smallNo less than
est one-day sessions seen in Phelps Dodge, Miami, Magma
around a year and a half. It and Andes Copper were able

.

downdrift in prices;

although others for the most toying
plenty of caution with their previous highs only

was

.

again

are

in jeop-

;

.

Boardrooms

consequently showed

were

somewhat

side

Darticularlv since! ahnr

the

on

for North American Aviation

Z

Tb„n8 this issue to ,u,„ in
w"a^ would have been a supe

incomplete reaction carrying
into

isn't

the

busier

Leadership
What

less

some

of the

has

been

than

some-

low-priced

lative issues

with

good

specu-

making the most

active list with fair

regularity,

weeks.

The

hopes

of

the

techni¬

rail

shares

cians

that

the

would

come

to life and

*

forward

new

signal
found
IOUna

push
pusn

iUI waru

«... .. nourishment
nent
carriers

lag

on

it

n

the

under its

definte
a

score

points

*

share since

bright

in the list

lights

njng ?g cents obviously could
be

which is anything but

ly dividends have been
increased

view

in

run-

the

of

is

welL under the 12-times-earn-

sales are now being achieved

were

the

in

stock

a total of 1,678 stores,
while in 1929 the chain, operf:

;

average.

centered

*

where the world

been

the

fact, the

section

copper

*

shortage has

*

ated

principal

for

new

running

highs

better than the

leaders

in

lion

the quarter bil-

over

The

line.

stock,

(subse-

In recent months, have been def- quently split 2-for-l in 1951V
largely initely lukewarm in following sold at 122 in 1929. In fact it

keeping
new

aircraft

prop.

coppers were

responsible

the

the the lead of North American,

slightly Illustrative

of

the

is

of

one

achieved

was

the

FREE!

those

all-time

the year

in

Investment Program for 1955-1959"

split

C.

G.

.

icance
2.1

of

.

common
.

.

store

stock's

.

Money-Credit Developments.

Stocks lor growth and

appreciation.

SEND TODAY—FREE COPY!

as

one

Program":

132

before

side.

split recently,

were

Western

Sunbeam,

which

were

still

are

First

Na¬

lars

on

have

article

a

the list of

LETTER TO

not

coincide

with

They

of

those

are

of

Comparison of Investment

Richard A. Houghton

also
a

common

stocks of large

com-

Editor, Commercial and Financial Chronicle:
Every small investor is sooner or later

faced with the impor¬

question of whether to use his accumulated savings to pur¬
stocks or mutual fund shares. All too often his

tant

chase individual

decision is based

is
,

•

made

personal prejudice, rumor, or the intuition of

on

In the following article an

his broker.

to

compare

investing
the past five years

From

...

equivalent
stocks.
*
-•

an

amount in several listed common
\

attempt

the results of

$10,000 in mutual funds over
with the results of investing

a
fairly definite!
drawn—namely, that opencompanies are a poor place to r

comparison

this

conclusion may be
,

■

end

investment

invest accumulated funds, whether
tive of the investor be

v

annual income.,

•

-

!

fi

>,

^

|

:

,

.

,

To compare the

the objecor large

capital growth,

appreciation and earnings
shares with that

record of investment company
of listed

stocks, the five-year period

common

31, 1949 to Dec.--31, 1954 was chosen
assumed that an individual invested $10,

from Dec.

It

was

000

in ten different

Richard

A.

mutual funds at their last

Hougnion

offering prices on Dec. 31. 1949, and also $10,000 in ten listed stocks at their closing prices on this same date.
Dividends and

securities
In

capital gains presumably were not reinvested, and
sold at their last prices on Dec. 31, 1954.

were

selecting

a

sample from each group, it was further assumed

unacquainted with stock market

that the investor was completely

operations, but that he acted in a
of information which was

101

reasonable manner on the basis

available to the public at the end of 1949.

mutual funds selected were chosen from those

mutual funds in existence

most percentagewise in net asset

during the five years to Dec. 31, 1949.

Investors Trust was

The first eight

at the end of 1944.

funds which had increased

value

variety

a

finds that

panies in expanding industries have given better results than
investment in certain selected mutual "fund shares.

were

*

which

the

80's,

The Massachusetts

added to the group because it was the oldest

Continued

Jias

on

page

35

record

"fastest-grow¬

yield that approaches 5'/ and
from
ment.

concentrated

the

attention

FINANCIAL & STOCKHOLDER

The

Executive of
and

depart¬

stock, in fact, is

mature

experience seeks opportunity

that is active

challenging in this expansive phase of Public Relations. Back¬

ground

research

stranger

to

recent

ap¬

the list of

new

ADDRESS

pearances

INVESTORS RESEARCH CO. 'SSSrStSnA

as

only. 1

of

financial

and

business journalism,

with seasoned

perience in industry and hank Public Relations. Engineering
tion.

Writer

of

magazine articles. Has know-how

ex¬

educa¬

for getting the

print)

_state

the

presented

EDITOR:

THE

Makes

better.

or

regu¬

lows.

expressed in this
necessarily at any

views
do

new

RELATIONS

no




weak
and

those of the author

yield 4r/

Nine of the ten

equivalent

something of

1CC-81

City

at

1954 low,

similarly neglected despite its

NAME

(please

as

Stores,, which

ing" in the business, has been

some

Please send tree, "A Positive
Investment

:!:

chain

mistakes made

Supply vs. Demand for
Long Range Signif¬
.

1928

Murphy,

built up

stocks

of

of frenzy. Currently

*

common

Union

still

exceptions

peak

value has been in the

Copy of "A Positive

Four costly yet
l>y investors

5%

around

Elevator .and

all

rotating whose

lows, al- leadership in the group is the

Your

latter,

doubled

given to the wider swings
the

Chronicle.

5,575 stores but sales just"

Douglas and Boeing, which nudged
were

on

bit from its

a

than

more

high from the

was

stock

The

single-issue capitalization and

■

earnings,

a

its

com¬

on

prices when

which

under the

points

standing.

[The

an ex^

cessive market history. A
P^nt-. Qt odd comparison is
that its billion-plus annual

good earnings. Moreover,

lofty

time

•

mostly in the

of

tional

order

«

ings standing of the industriall0n

there

stock

leverage

of

score

something of

5% yield on a well-sheltered
dividend. Despite the fanfare
^5 and 28-store chains
within a three month span,
the issue has held in a range
of only a shade over 10 points

reported in the official figures

such

inverse

an

earnings a
a

bee"

«

Coppers the Bright Spot
What

annual

a

into

third niche in the indus-

selling at only about six times

year's high.
❖

•/•••

try has been selling at nearly

easiness
of

worked

off

now

a

tor nine months. The quarter-

had

'. -v'

<

indicate

estimates

the

u

particular,

of

left it

i

has

basis

sales

has

company

could exceed $9

fJ
a.
general. Missouri

in

moments

were

that

g

is

Pacific,
that

and

*

ending in Septem-

generally continue to

.....

wn

„

ber

buoyant periods and to
fi

,

companies that still show

for another three

The

fiscal year

fate, with GM

oc¬

were

v

with

far. The stocks have

has run its improvement for Safeway holding in about a
the month past 10 points with seyen point range despite the
stiU some room for additional rather
violent Spring seesaws
of the market.
ebullience since the directors
meeting for dividend action
Kroger Co., which on a
come

V

fact, the list is studded

Otis

^oQ mucj1 commotion market-

*

losses

yu

yield

•f

constant

couple of

drastic

rather widespread attention

so

a

get lofty standing. Sunshine Bis¬ reacting from their jubilation
cuits is in this category on a
and were

strong market. The stock now done little all year so far,

won't

£

their

funded

On

/ better than 10 points from its

market tumbles

Stocks

Store

Store stocks continue to

rior performance even in a wise

season

encouraging spectre,

an

Neglecting

earnings estimates

gloomy optimistic

of

In

mon

*

❖

*

life with highly

some

free

rather

peak price, while Re}rnolds is

year's peak.

occasionally

Aircrafts

.

is

en0Ugh to generate above-average yields despite
great enthusiasm and left the fact that
they have no
issue on the heavy side
prior obligations which exert

Aircrafts

Some Leading

and

"news-is-out"

the

of

also downdrifts.

wasn>t

from its

ardy.

ailment

preferred stock in casions

its

V

short distance away. It was a
1 ® ou|^an mg group ac ion tke
°
^
❖
*
*
and off better than 30 points

early August lows of the

averages

pres¬

company

proposed debt.,

dividencl boost which

a

n

engendered by the fact that a,

over

May

rather persistent

cance a

the

division

plans. The

retired

e;tbe, matching

3_for_j

thg

ent

signifi- to push into new high terri- by Generai Motors, or exceedtory simultaneously, with the .
d Instead investors were

robbed of much of its

there

...

.

being added under

ones

met this

rectors

^

breadth

week1 from

dj_

duP(jnt whose

from

]ead

lows and
a

range

on

hasn't yet

of

as

right information to the right people at the right lime, especially
in New York financial

cial

built

much

as

up

six

community. Box C 818, Commercial & Finan¬

Chronicle, 25 Park Place, New York 7, N. Y.

Volume 182

Number 5456

...

(681)

The Commercial and Financial Chronicle

iff it weren't

for financing
Chances

we'd still be using

are

whips, wood

stoves,

wash tubs and kitchen

The low cost,

pumps.

couldn't exist without

A REPORT FOR THE

produced

mass

cessities and conveniences

ated

buggy

we

mass

know

ne¬

today

markets

cre¬

by modern financing.

Among the nation's largest providers of

FIRST SIX MONTHS

credit, Associates and its subsidiaries do
CONDENSED CONSOLIDATED BALANCE

combined business of well

SHEETS

dollars

ASS ET S

Cash

and

June 30. 1955

June 30,1954

$ 81,146,112

$ 66,968,329

Marketable Securities

a

a

a

billion

Much of it is in automotive

year.

time sales

over

financing: but much of it, too,

is in commercial loans to manufacturers
Receivables:
I

ft

Retail

/

motor

a

and business

vehicle installment

S578,409,395

$424,553,547

67,100,654

45,487,999

personal installment loans.

41,678,044

37,765,548

Commercial and other receivables....

27,696,421

25,803,615

receivables

Wholesale

.

motor

Direct and

Less:

personal installment loans to individuals.

vehicle short-term

loans

$714,884,514

$533,610,709

Unearned discounts

44,144,624

Reserve for losses

17,506,326

30,707,576
11,484^714

receivables, net.............. $653^,233,564

$491,418,419

Total

Other Assets

1L^9,998

7,617,605

$745,909,674

$566,004,353

LIABILITIES

Term Notes due within one year

Common Stock Dividend

Accounts Payable, Accruals and

Capital

Reserves

Notes

Notes

Debentures

Preferred Stock
Common Stock

surplus

CONDENSED CONSOLIDATED

$255,560,050

39,770,000

43,250,000

1,562,736

1,406,462

29,705,347
28,925,709
136,135.000
42,000,000
18,500,000
12,500,000
31,254,720

24,724,799
24;876,229
85,455,000
35,000,000
9,000.000
12,500,000
31,254,720

52,840.062

42,977,093

$745,909,674

$566,004,353

June 30, 1955

June 30, 1954

$51,648,914

$46,254,477

income

Operating expenses
Net income before Federal income tax....
Provision for Federal income tax

after

ferred dividends




34.296,900

30.792,812

$17,352,014

S15,461,665
7,490,000

8,540.000
$ 8,812,014

Net income

Consolidated net earnings

per

payment

financing services like these

helped bring America out of the

horse and

buggy days. Today Associates

can

be of

ing

economy.

even

greater

There

help in

an

expand¬

151 Associates

are

branches in United States and Canadian
cities

serving automobile dealers and
138 Associates direct and

sonal loan offices devoted to

pur¬
per¬

consumer

Working capital for business and indus¬
try is

provided through the Associates

Commercial division, with

offices in New

York, Chicago and South Bend.

associates
l

X

Commercial and Installment Financing

Discount, interest, premiums and other

stock

have

INCOME STATEMENTS
Six Months Ended

common

Diversified

finance.

Unearned Insurance Premiums

Subordinated Lonc-Term

$352,716,100
payable

July 1, 1955

Long-Term

;

chasers;

Notes Payable, short-term

enterprises, and in direct and

,

$ 7.971.665

ASSOCIATES INVESTMENT

COMPANY
/

ASSOCIATES DISCOUNT CORPORATION
and Other Subsidiaries

share of
of pre¬

$2.73

$2.47

IIOME OFFICE

•

SOUTH BEND, INDIANA

.

i

'

17

18

The Commercial and Financial Chronicle

(682)

Railroad Executives Discuss Outlook for the
customers and

Continued jrom page 6

tory

materially help the industry. It remains now
lor the Congress to carry out the recommendations.
These reforms, together with the cooperative spirit and

we

of

expanding economy of the terri¬

the

serve.

that should

willing attitude of the rail brotherhoods, certainly in¬
dicate that the future of the rail industry is one of bright

promise.

.

J.

of leading businessmen as the Greater Bal¬
timore Committee and the Joint Committee of the Gov¬
groups

Mayor

Our

President, Rock Island Lines

;

leaves

doubt

no

general.

in

all

lines

of

condi¬
production and
demand in almost

manufacture

would

see

records

new

many

with

business

in¬

1955
estab¬

the

then wonder

daily

pears
sort

and

'

revenues.

J. D.

Farrington

of the

cause

limits, prescribed

narrow

by law, in which railroads'may move
to meet rates set
up

riers,

by the highway and waterway car¬

considerable

a

amount

traffic

of

is

lost

competitors.

Despite this general situation, I am firmly convinced
that 1955 will end as a very good year for the industry
as
a
whole.
The railroads will not show spectacular

gains, but they will show modest

increases.

The

vast

investments the industry has made in improved facil¬
ities, and the operating eccnomies that thus have been
affected, have combined to place the industry in a
very strong competitive situation.
Should the recom¬
mendations

the

of

President's

Cabinet

Committee

on

transport be enacted into legislation to place all forms
of transportation on an equitable (competitive
basis, the
future of the industry should be much brighter, indeed.
Taking a long range view, the Rock Island Lines will
undoubtedly share well in the future prosperity of the
nation.

I base this premise on the fact that the unprece¬
millions of youngsters now growing up will, in

dented

time to come, establish greater and greater
demands through the li&tqratprocesses of

This

means

meet

these

pace

with

they
the

demands

more

demands

produce

may

on

cost.

The

mass

Rock

grain

before World War II, been in
progressive planning by which to meet

the

system has,
forefront of

every

foreseeable

It will continue to build for the

has

provided

large

loss

of

traffic

due

in

transportation, while at the same time rigidly restrict¬
ing the railroads in their efforts to meet the competi¬
Statutory restrictions enacted under entirely dif¬
ferent competitive conditions are outmoded and in need
of

modernization

in
order to
maintain
a
strong and
transportation system in the national interest.
The report submitted to President Eisenhower
recently
by the Cabinet Committee on Transport Policy and Or¬
ganization is a step in this direction.

efficient

FELIX

S.

HALES

President, Nickel Plate Road,
New York, Chicago

&

St. Louis

predictions, the automobile, steel
and construction industries spurred industrial production

will

of

shortly be stimulated by exten¬
additions

to

Surpassing

to

record in the first half of 1955, and the volume
traffic, consequently, exceeded expectations for
tne same period.

new

a

rail

merchandise

the

earlier

Nickel Plate carloadings increased
14.2%, compared with the first half

as

of

1954, while

come

intensive sales promotion also
the future.
On the operations

side,

Despite
national

good earnings for

assure

and

revenues

9.09%,

rose

and

net in¬

27.40%,

highest

the

that

fact

the

point

date,

to

of the increased

the

current

consumed

healthy. Most
productioh has been

that

so

increases

ventories have been slight.
business

supply, augmented by purchases of new cars
rebuilding of old, protects the expanding require¬
ments of the shippers and provides a very substantial

should

continue

rental

income from

other

railroads

the

to

Western Maryland. In the direction of
long-range econ¬
omies in car operation, the
Company has been among
the leaders in the adoption of roller bearings, and its
newest

cars

using high tensile steel to lengthen the
heavy repairs. In the company's lab¬
the road every new idea which might

are

interval between

oratory and
result

in

on

improved service

or

is

economy

in

in¬

The steel
at

present

car

levels for at least the balance of the

and

car

gross

production has reached the

business picture seems

our

including the new
starting construction, increased Centralized Traffic Con¬
trol, and better roadway machines mean savings.
A

of

re¬

spectively.

completion of dieselization,
streamlining of service facilities now

item

large

tion.

Recently completed warehouses of the Western Mary¬
land in the heart of Baltimore, its
piggy-back equip¬
ment, and a new industrial development activity and

full

been

policies and programs which have
subsidies for highway, water, and air

timore.

This

year.

struction

Felix S. Hales

is

also

of

true

the

con¬

an

indi¬

industry in which

cated decline in residential building
being offset by an accelerated rate of plant investment
by business. It seems unlikely that the automobile in¬
dustry can equal the record set in the first half of 1955,

is

particularly in view of the increase in dealers' inven¬
tories.

However, the anticipated earlier appearance of
models and shortened changeover periods should be

new

thoroughly

helpful. There is room for furtner expansion in other
industries
which are operating at less than capacity
Finally, from the standpoint of management controls
rates, and on the whole, it appears that second-half busi¬
and financial stability, the
company
has an effective
ness for
the railroads should equal the first six-month
budget and inventory control and is streamlining its ac-r,(
volume. Encouraged by the present outlook, the railroads
counting to fit in ultimately with the great advances \
are stepping up their orders for new equipment to meet
that have been made in electronic data
processing.
rising demand for their services.
•

considered.

The

F.
President,

transportation at

Island

There

is a

as

?

glass plant.
Ocean shipping at our Port Cov¬
ington terminal in Baltimore Harbor

sive

will

«ince

economic development.
future.

families.

and to
constantly keep
development by which

efficient

more

possible

new

transportation,

railroads

technological

every

lowest

the

consumer

marriagfc, the

building of homes and the propagation of

facilities,

these

to

Maryland lines,

Western

Industry

government

along

construction

under

is

part to

pier
space,
tracks
and
handling
will the grain trade by the expansion of our
elevator to 5,000,000 bushels, the largest in Bal¬

The answer,

of course, lies in the
increasing freight volume that
is
being
handled
by
competitive
forms
of
transportation,
most
of
which are subject to very little regu¬
lation, or no regulation at all. Be¬

Grotz

Arthur

W.

ever

market

large

recording

gains, the railroad industry ap¬
not to be keeping up the same
of advances both as, to volume

new

ex¬

we also see the
increasing output of
the coal mines served b,y the West¬
ern
Maryland.
Greatly
expanded
cement
and
paper
producing ca¬

pacity

The casual reader may

ore.

prospect of an

lished.

why,

and

limestone

coal,

expanding domestic and

coal

port

dicate that the close of the year
will

of

the

In

Increased

greater consumer

of the steel

industry augur well for added move¬
ments

to the sound and prosperous

as

business

of

tion

business outlook is bright.

own

The expansion programs

section^ of metropolitan
and the columns of financial publications

Daily perusal of the financial
newspapers,

the question of a port authority.

on

Thursday, August 18, 1955

.

Denton, will be completed late this year, and is the
longest stretch of new railroad built by any single line
in the United States during the
past 20 years.
Handicaps in competing with other forms of transpor¬
tation remain a major problem of the Santa Fe and other
railroads.

such vig¬

Expansion is afoot in Baltimore, spurred by
orous

ernor'and

FARRINGTON

D.

GROTZ

W. ARTHUR

President, Western Maryland Railway Company

.

.

G.

GURLEY

Atchison,

Topeka

Railway

Santa

and

Fe

record

System

ing at

high

present

shadow

in

the

levels,

level

picture.

of

credit

consumer

is

one

Although personal income is at
credit recently has been increas¬

consumer

rate of $10 billion annually and the amount out¬

a

all-time high. The result, of

Earnings of the Santa Fe Railway System for 1955 are
expected to be better than those of last year, but short

standing is

now

at

lias

the

tremendous

of

basically has brought about the increased production

1953

our

figure.

Industrial

during the first six months

business

this

of

on

line

our

has been out¬

year

been

ferred to.

an

course,

spending

consumer

which
re¬

Looking beyond 1955 it seems likely that there

standing for the

system, and

the

should

in

has

months, Santa Fe's second half, with
greater
movement
of
agricultural
products, should exceed the first

high well into next

half.

ices,

There has been sufficient moisture
the southwestern states of Texas
New
Mexico,

which

and

of recommendations in the Presidential Cabinet Commit¬

Island's

Rock

passenger volume in 1955, contrary to
declining trends shown by the industry as a whole,
month
by month recorded slight gains.
This, I
regard, as an indication that insofar as our railroad is

concerned

followed

have

we

the

the

passed

downward

leveling off phase that
trends from the higher levels

of previous years.
The future of the Rock Island,

whole, is to

say

and the industry as

a

the least, genuinely encouraging.

DONALD Y.

There is
good reason for optimism regarding the
general economic outlook in the Southwest for the bal¬
ance

of

1955

and

for

several

that the high level at
will be maintained.

Having

years

which business

ahead
now

and

feel

I

is operating

a

tour

of

railroad system, I was impressed
by the confidence and optimism ex¬

pressed

by

business

whom I talked.
of

severe

dimmed
Texas

homa,
area

for

but
may

the

leaders

Panhandle

recent

have

future.

of

moisture

changed
The

with

in

spots

in

ture.

Active industrialization

territory is under

of

KATY's

is




and

cotton

D. V. Fraser

the

showing improvement

over

they

them

Report.

ate

more

increase

to

their

at

a

These recommendations are designed to

cre¬

equal terms of competition among all forms of

transportation,

expectation

the

with

forces will produce

aver¬

that

mdre efficient service
J.

competitive

at lower rates.

Fred

G*

Curler

expand,

the

balance

in

many

Santa

new

of

Fe

the

year.

territory

industries

have

traffic for

our

The bulk

account.

consists of

the passenger equipment
for the new Hi-Level El

cars

will

Capitan

inaugurate in 1956.

increasingly evident to
years

toward

chair

in

us

railroad

car

travel.

It has become

that the trend during the past
passenger

This

business

new

train

has
will

greater customer appeal.

The patron will receive

for

the

his

travel

dollar,

at

same

time

service will result in increased
economy,
been striving to reach in our
passenger
Work is

miles

of

progressing in Texas

on

been

have
more

this

improved
which we have
operations.

construction of 49.3

volume

of

over

that passenger

St.

and

Paul

Company

freight

traffic

will show

year

the corresponding period

a

during

an

year

travel will continue to show

a

railroad

city

of

between
an

Dallas.

Sanger and Garland

to
improved and direct entrance

This

route,

via

the

city

of

the

increase of
ago,

and

decline of

about 10%.

of

Because

increased

and

wages

allowances and higher prices for ma¬

terials
and

and

supplies,

operating

our

maintenance costs

will continue

to increase.
At

this time,

look in

our

the agricultural out¬

territory is favorable, but

with

such

crops

being subject

a

large

percentage
to

of

Government

control, the movement to market is

and, therefore, difficult to
resulting in shortages and

spotty

program,

surpluses
times
move

of
to

of
the

equipment
year.

market

in

If

at

various

could

crops

accordance

with

John P. Kiley
practices, there would
be
fewer freight car shortages.
The railroad industry continues to be plagued with

normal

,

new

provide Santa Fe with
the

on

the

believe

Railroad

remaining months of this
about 5%

has
been

of

Pacific
I

KILEY

P.

Chicago, Milwaukee,

President,

and many existing industries have increased
existing operations. This condition should be pro¬

several

into

hope

competitive disadvantage with
Of vast importance to the
the public and the railroads is the enactment

place

tee

produc¬

for

development

to

which Santa Fe

We are engaged in a program of improvement
railroad, both in plant and equipment; which we
intend to continue. It is our
purpose to keep the prop¬
erty not only abreast but ahead of the demands of our
of the

re¬

provided weather conditions in

order

last year and I am hopeful the volume will
continue to

expand.

an

railroads

improving equipment and offering new serv¬
still need freedom from certain restrictions

welfare of

remaining months of the year are not adverse. We
therefore, look for fairly good prospects from an

motive1 units.

way

business

permit'

year.

nation's

other forms of transportation.

years.

not

was

the

business by

Passenger revenues this year will be on a fair level,
although they will be slightly below our 1954 figure. As
of Aug. 1, Santa Fe had on order
2,703 freight cars, 97
streamlined passenger cars and 19
freight Diesel loco¬

and greater intensity in this di¬
rection will be the key to further success for
the whole
Southwestern region.
The

While

corn,

sorghum, grain,

ductive of good

ter¬

pic¬

to

two

past

slacking in consumer demand but indica¬
overall industrial output will remain

that the

are

crop, yet it has contrib¬
uted toward
prospects for good

their

this

economic

tions

located,

in

cycle

Southwest

time

Industrial

Okla¬

this

*-

six

some

wheat

continued

ritory served by the KATY is en¬
joying a comparatively better year
than 1954, and, in
my opinion, it is
again becoming one of the bright
the national

in

age

the

moisture

agricultural standpoint

last five years
conditions have

drought
agricultural picture
the

ceived

can

The

the

and

the

the

■our

during

While

tion

just completed

if this

second

Colorado, Oklahoma
Kansas, to materially alleviate
drought conditions which have

existed

President, Missouri-Kansas-Texas Railroad Co.

the

in

the

FRASER

continue

be

may

low return

on

its

invested

.'

a

capital, notwithstanding that

Continued

on page

20

Number 5456

Volume 182

Western

.

(683)

The Commercial and Financial Chronicle

..

Europe

Aulo Production at
Record High

Leva!

National Industrial Conference
Board analysis

showed Western

European auto manufacturers
since 1948 have raised their out¬

Ameri¬

put at about same Dace as

producers and have greatly
enlarged their export of cars.
can

They

turning out almost

are now

75%

Western

auto manu¬

European

facturers

exported.

vehicles

all

of

turning

been

have

motor vehicles at such

since

that

1948

their

output

was

of 1954,
analysis recently

by the end

bv 211%

up

out

fast pace

a

according to

an

.jmade by the'National Industrial
Board.

Conference

compari¬

By

United States commercial and
passenger car production rose by
about 25% over the same period.
son,

Cars for Export

Increased
been

foreign

have

sales

responsible for the
production
in Western Europe.
These coun¬
tries
now
manufacture
nearly
largely

tremendous upsurge in

of

three-fourths

ported

vehicles

all

the U. S. accounts for

than
U.

most

50%.

Kingdom ships the

United

The
most

its border—mainly

across

Zealand

New

Australia,

commercial

and

passenger

vehicles

to

the

war,

exports was al¬

share of all

S.

little more

a

Before the

fourth.

a

ex¬

while

markets,

world

to

Sweden. The United States,

markets

primary

Mexico,

are

Venezuela, is t..e/ sec-

and

Brazil

and

whose

'

motor
West¬
Germany, with large exports
Holland, Sweden and Belgium.

ond

of

exporter

largest

Ranking third is

vehicles.
ern

to

The
that

found
maintains

Board

Conference

States

United

the

because of its huge
commercial vehicles.
If passenger car exports alone are
: considered,
the U. S. ranks third,
cbehind the United Kingdom and
second

place

of

■exports

Western Germany.
Total

Quarter-mile lengths of welded steel rail curve around a foothill like wire

cable.

Production—r\

World

Free
"

1938-1954

Western
■

to

has

Europe

able

been

its share of total free

increase

from 1948
1953. From
1954, its share rose from'1
■only 13% of the world total to
26%—almost up to the previous

■world
In

steadily

output

except

year

every

to

1948

in

high level in 1938 of 29%.
United

The

States

in

also

is

position in relaHon to total free world production
the

sbout

-

as

it

same

How¬

1938.

in

It's Santa Fe's

1954 share represents a

the

sharp drop from the 83% in 1948.

new

Crowded

are

vehicles

in

in 1938.

the

alone,

much

every

More

ten com¬

mercial vehicles in the world

outside North

contrast

to

a

are

America, in

ratio of about two

<out of every ten

passenger cars.

Chicago Meetings
CHICAGO, 111.—The Investment

bold

its

year

in

meetings

next

the Adams Room of the

Midland

^been

of Chicago will

luncheon

Hotel.

made

flexibility

to
in

over

stretches of new con¬
Santa Fe.

And these stretches will be

longer and
For we're

This

change has

permit

increased

scheduling

meetings.




extra

growing

frequent on Santa Fe.
laying more all the time —

In

welding

new

more

(for the first time by an
railroad) to help bring Santa

process

American

vised ballast

machine
more

smoother ride to more people,

specially-de¬

cleans
so

our

keeps it

ballast,

the track lies flat and

even.

And

But that's

today we're replacing old ties

longer and stronger new ones—

sturdy for 30

years

and

be¬
ing done to make "America's New Rail¬
even newer

and better. Santa Fe

millions, of earned
dollars every year for new roadway and
new
equipment. And not one penny

railroad is

no

better than its

track, track itself is no better than
what's underneath it—the roadbed, the
ties, the ballast. So we've been

busy

spending

comes

in these

more.

Day after day, something new is

;

only part of the story. •

What about expansion

specially treated to stay strong and

is

as a

you

"clry cleaner." This unique

resilient

road"

goods.

Just

smoother ride for

improvements here, too.

For instance, our own

with

we're using a new electric

fact,

new

...

more

103 miles of it this year.

Fe's

Investment Analysts of

Analysts Society

glide

with

"clickety-clack"

tinuous welded rail on the

rest of the
closer
to

America.

North
than four out of

matching

you

click—that's all

commercial

of

use

comes

use

An occasional little

as

vehicles

In

all

This compares with 78%

the

world

of

free world

you'll hear of the old

1948 and 73%
In

74%

the

in the United States and

used

Canada.
In

that

found

NICB

continuous welded

Fewer joints mean a

Highways

American

North

motor

carload

before the war: 69% now

was

compared to 66%
ever,

a

many

from the taxes you pay.

SANTA FE SYSTEM

LINES

Near

quarter-mile rails?

Newton,

Kansas,

where yearly

temperatures vary from 20° below to
114° above, we laid a 5-mile experi¬
mental stretch of welded rail. Here we
found that
other
area

tie

anchoring the rail to every
expansion to the
overall ex¬

restricted

between anchors. Thus,

pansion
tion of
other

was
am

reduced to the merest frac¬

inch between rail ends.

words, expansion is

whatsoever.

no

In

problem

1£

'20

The Commercial and Financial Chronicle

(684)

Railroad Executives Discuss Outlook for the
Continued from 'page

PATRICK

IS

of

I9a5

oi

the

rank

President, Northern Pacific Railway
While it may be too
of

level

year.

and

railroads lor the first six

file of

the

last half

of

tnis

year

i-igj est since 1943 and

tne

beiow

share,

forecast

based

is

tnose

isfy

an

Farm

lower

yields should help maintain

than

ago,

year

a

Bairick

Robert S. Macfarlantf

3

some

Pacific

million

oil

owns

acres,

rights

on

lrom

rise

four

participating in the pro¬
wells, which is 22 more than at the end of

seems

their

railroad

geneial,
Butte

common

line

United

Montana

to

and

Guernsey

in

Fort

Laramie, Wyo., to connect with lines to refineries in the
Midwest.

to

further de¬

of production and

able

more

velopment in the Williston Basin.
To

speed

duce operating costs,

June

This

transcontinental freight service and

up

steel

boxcars

total of

and

mechanical

50

year

was

range

oi

trie

dieselize four of

fully

divisions by 1958, is

and next

'

;

*

to

to

other

its

expand

capacity

of either manpower or fuel.

use

are
cost of about $11 million

a

increased
Coast

1955

of

was

above

1954, thanks

the

to

patronage attracted to the Vista-Dome North

Limited,

streamliner, by

Chicago-North

our

crack

new

equipment and services.

Pacific

Coast

train

to

nurses

luxurious

The latest

personnel and inauguration of

Traveller's

Rest.

favorite

Rest

the

was

as

have been

may

explorers, whose expedition to the Pacific
1804-06

and

whose

made in

was

the

made

face

by

American

railroads

has

problems
is

to

believe

that vast

do

not

seek

fate

of

the

Trustee,

Florida

East

Coast

decline in

favorable

due

territory.

HENRY

Railway Co.

Railway has experienced

the

to

continuing

served

in

gain

during

the

past

30

the

gain

shown

whole, and

many

estimated
new

of

500%

This

years.

by

the

has

in

its

of

joyed
both

that

the

at

East
a

Coast

rate

of

of

on

line
on

from

and
our

line

is

normal

It

This

area

industrial

which is
The

now

consisting

serve

of

the rich

new

a

for

the

railroad

industry

as

a

their

whole

in¬

line loadings have

on

ac¬

increase in net income for

railroads.
it

should

But

in

be noted

this

rein

connec¬

that present

earnings reflect

tight

roads

and

in

general

expenditures

on

for

higher than when present
acquired, because of in¬
being paid in the
producing industries; and that there
pending for negotiation in the near future numerous
stocks

Henry

offers.

outlook

Our

of

maintenance; that costs of materials
being purchased by the rail¬

expanding market,

brighter, due to the current high level of general

raw

now

substantial

plants

an

railroad

has almost doubled in population

development,

warehouse facilities to

replenishments

ducing

than'100,000

a

of

because

The upswing in carloadings is pro¬

ac¬

Palm Beach, Broward, and Dade Counties has even been

rapid.

year

tivity.

Florida, comprising

during the past decade, and is experiencing

Loadings

increased this year as a result of the

tion

the lower Fast Coast of

in carloadings,

depressed last

ventories.

a

per year.
on

en¬

industries in general were curtailing

most

Growth

year

connections.

were

others, has

widespread increase in business

average.

Florida

more

as

with many

are

S.

demands

Mitchell

of

are

were

creased wages now

railroad

employees

for

further

wage

in¬

plague

the

creases.

business

activity.

Heavy

investments

bring about operating economics
off

in

a

higher

net

on

most

margin is still precariously thin.




are

in

facilities

beginning to

railroads,

although

to
pay

the

Deficit

railroad

passenger

operations

continue

to

industry, and obtaining relief from them is still
slow and difficult process.
On our railroad, we have
been able to ease this burden
by accommodating pas¬
a

op¬

war

be

and

under
so

last

without

inflation, rail

continues at high levels.

revenues

Personal in¬

plentiful

are

^
industry, despite

of production,

will

a

predicted leveling

continue

to be a sustaining in¬
Steel production, gener¬
barometer of industrial production,

fluence for the rest of the year.

regarded

ally

reach

may

t

e

best,
to

are

a

all-time high.
1955

but

be

may

record for

years on

These
„

as

an

belief that

This

upsurge strengthens
of the best, if not the
national economy.

one

our

few of the factors that will contribute

a

good rail earnings. They justify the forecast
increase in

12%

net

10 to

c : a

income, which forecast
was made by
the railroads in seeking retention of Ex
Parte 175—Surcharges.^
'

operating

-

traffic and

rail

With

revenues

continuing to improve,

with rail carriers generally demonstrating marked
ability to control expenses, railroad operating revenues
will be good in the second half of the year and 1955
should be better, earningswise, than last year.
and

Obviously the above

assumes

ternational situation and

worsening in the in¬

no

serious strikes in

no

the major

industries.

JAMES

P. NEWELL

Vice-President—Operations, Pennsylvania Railroad
During the summer of 1954
conditions and

in

1955.

we

anticipated improved

increased volume

an

The results to

date

have

cf freight

surpassed

our

expectations with a 16% increase in net ton miles.
a
result of the type of traffic which

As

has

Company

common

substantial improvement this

a

than

more

Florida

of

times that of the national

residents

in

population

been

State

off

in

railroad,

this line have shown

by

excess

double

now

growth

MITCHELL

S.

Railroad
Our

materials

counties

remarkable

quiring

rapid

of preparations for

is

probable.

business

President, Duluth South Shore and Atlantic

traffic, its freight traffic has

passenger

,

The coastal

seems

are

traffic

held up relatively well, and its long-range prospects are

unanimous

which

undoubtedly will continue to

stimulus

badl.v needed legislation recommended

MARTIN

While the Florida East Coast

freight

and continued increases in wages and dividend payments

report is up to every thinking man and woman
would benefit from more efficient transportation.

It is up to every investor in the land.

W.

since

The Gross National Product for the second quarter hit
annual rate. Construction activity is
high and

fast veering in favor of railroads.

are

last

time

provide

this

in

who

JOHN

first

traffic gives promise of holding up through the balance
of tne year because production of the things that

been

of

The

in the Northwest this year.

more

the

of

reason

period

same

the

that such

laoi

eany

government

The automobile

prospect of accomplishing this end with the
enlightened thinking in legislative circles, is
brig' t. The report of the President's Advisory Cabinet
Committee on National Transportation is a case in point.
aid

sesquicentennial is being celebrated

for

and

year,

industry has long since been squeezed out. *

progress

in

corre¬

timism has prevailed.

in the capital structure of the

The persent

site in western Montana by the famed

camp

murpny

is

gives evidence of continuing to be strong.
come is expected
to hold up because jobs

regulation of competing forms
of transportation.
They seek freedom from the stran¬
gling regulation from which its competitors! are free.

given

name

This

The

Railroads

fleet of

a

c.

Except

„

changes in the
railroad industry lie ahead.-Changes in both operating
and corporate patterns are in prospect.
If our entire
distributive system is to be brought into line with our
highly developed productive system, then the necessity
for
sound
integration of our transportation facilities
cannot be escaped.
/

buffet-lounge cars, called Lewis and Clark

new

Traveller's

is

«.

the

over

creases

record

tation

service refinement has been the addition of stewardess-

above

a

There

14.61%

16.4%

to

In forecasting the freight carload¬
ings for tne third quarter of tie year

year.

organized their shortcomings, and accumulating evidence
suggests that public attitudes toward our mass transpor¬

expected to exceed

are

j

11

sponding periods in 1954.

recently, all 13 of the Regional Ship¬
pers Advisory Boards estimated in¬

Our rail¬

-

the

from

of

pa&i

seemingly overwhelming obstacles.
These obstacles stem largely from a long-since extinct
monopolistic age.
Most American railroads have re¬

year^fe

Northern Pacific's passenger revenue for the first sixmonths

a

last week in May, the
freight has been moving
at its heaviest pace since October,
i953, and has been attaining levels

part of the

any

higher level during

nation's rail

in periods of crisis is
without proportionate

agency

a

ex¬

that loadings v/ill at¬

somewhat

a

than

more

last year, and

over

are

last half.

Since

up

carrier transportation service that un¬
anything, for anybody, in any quantity,

No

showed slightly

now

made

operating

seven

^head 6f schedule. This

year's diesel purchases

$12 million.

designed

program,

the company's

putting in service 71 units at

some

tain
t..e

to overlook inherent advantages
No other agency offers a

seem

Chicago," Burlington'&

increase

3%

pectations

Add to this the continuing high
implicit in booming business, and the
inescapable that railroad stocks will

trading

•

Co.)

backlog of rail

The

dieselization

half of the year

individual

ana

for the

outlook

railroads

accomplish this by putting more tons in cars,
cars
in trains, and more trains
on
the tracks.
leverage is an important consideration, invest-

water

million also went into service this

Pacific's

business

first

the

*

Northern

The

;

in¬

can

railroad

a

this

MURPHY

Quincy and for the railroad industry generally is favor¬
C. B. & Q. carloadings for

to

results, as measured by increasingly good control
operating expenses, are impressive. Then too, our
railroads are in splendid financial condition. And such

a

year.

half

year ago

v

•

able for the last half of 1955.

above

over

.

than $5

more

a

~I

C.

Denver Railway

&

Estimated

ciass

Organi-

ana

QuinCy; Colorado & Southern; and Fort Worth

sig-

Fortunately,
the tradition-bound
railroad
industry
is embracing technological progress with open arms.

Five hundred all-

refrigerators costing

first

from

H.

a

Northern Pacific put in service in

yard at Pasco, in central Washington.

the

mentwise.

re¬

$5% million "push button" freight classification

a

States.

increase in its

roads

expansion

for

lzo

at

of the year, to and from

season

any

so

This outlet to Midwestern markets is expected

encourage

!

Consequently,

ago.

recom¬

of the President's Ad¬

report

fair basis with other forms of transportation.

transportation.

dertakes to haul

eastern

lar

private

President, Burlington Lines (Chicago, Burlington &

year

accruing

are

considerable.

income

monotonous

Pipe Line Company, in which NP has a
10% interest, will complete t .is fall a 16-inch crude oil
from

Transportation Policy

months.

Many investors
of

1954.

The

now

a

cf

as

adoption

on

larger percentage gains.
conclusion

is currently

duction of 74

B. McGinnis

level oi rail traiiic

company

our

,

a

more

railroads

the

on

handling

which would enable the railroads to compete on

railroads including the New Haven Railroad
reportea iar

satisfactory standard of prosperity.
In
the
Williston
Basin,
where

Northern

year

net

'9%

but

slightly
a

a

is

creases

are

heavier

earnings

equities

oi

far

is,

depend

visory Committee
a

in

latitude for substantial dividend,

of forest products to sat¬

active building industry.
commodity price levels

it

and

the highways.

tne

zaation

be¬

and

prevailing

equipment

1

in

industrial

by

No.

made

percentage point

one

yield

tnat

lailioad

prin¬

cipally on excellent crop prospects in
our
territory and continued heavy
movement

tne/

rniitant

compared with $5.79 in

as

This

1954.

traffic

aiiordeu

' Kowevei,

ago.

the year's net income will exceed $7
per

yield

Stocks, tnougn

the

were

anticipate

we

months

well

may

mendations

average now afford an average yield
oi about 4.i6%
wriicn is well above

1956, Northern Pacific looks to the immediate
future with genuine optimism.
Our earnings of $3.04 per share for
the first six months of 1955

in

Industry

RDC

long-term survival of the

industry

operating efficiency. Equities, com¬
prising t..e Dow-Jones railroad stock

into

and

increases

speak

,

,

The

Company

during the first half
promise prevailing lor it at the beginning
The brilliant financial statements of the

tne

Budd

mail and express in trucks we operate on

realized

industry

touch to expect the present high

to continue

business

railroad

The

MACFARLANE

S.

ROBERT

Railroad

and

equipment

in

sengers

President, New York, New Haven and Hartford

during the last few years, billions of dollars have been

plowed back by the industry for new
modernization of physical properties.

McGINNIS

B.

Thursday, August 13, 1955

..

.

produced

volume,

tion

as

the heaviest increase
well

as

selected reduc¬

in

rates, the increase in freight
revenue
(9.9%) has not kept pace
with the increase in net ton miles.
The

serious

most

aspect

of

the

abrupt change is well illustrated by

comparison of our 35,000
(serviceable cars stored)
ago

car

surplus

14 months

against the shortages which

as

exist today.
With increased traffic and

it

has

been

possible for

increase

terially

expenditures,

our

us

revenue

to

ma¬

maintenance

particularly

our

ex¬
James

penditures for equipment, during the
last half of the
year.
In addition
to

P. Newell

placing orders for 4.000 new cars, the equipment re¬

pair budget has been increased substantially during the
same period.
Despite this expenditure, net income for
the year
We

will reflect

are

railroad

a

decided improvement over 1954.

confident that 1956 will be

industry

haps not quite

as

a

good

year

for the

^vith respect to freight volume--pergood

as

the last half of 1955. but

on a

plane about equal to the first half of the year.

Unfor¬
tunately a number of requests for increased wages and
employee benefits now confront the railroads. The ex¬
tent of such increases can materially affect the
1956
financial
results
of
the
railroads, and we question

Continued

on

page

22

Number 5456

Volume 132

The Commercial and

.»i

(685)

Financial Chronicle

Softball: John N. Faust, Kidder With Hamilton
A. C. Allyn & Co.", Wil ¬
Managem't
A. Grigsby, John Nuveen & Peabody & Co., Chairman; Clarke i
(Special to The Financial Chronicle)
Co.;
Thomas
L. Kevin, Giore, J. Robertson, Fairman, Harris &
DENVER, Colo. — Gilbert B.
Forgan & Co.; Charles E. LundCo.; Robert L. Meyers, Stone & Reynolds and Leo Simon, Jr., are
felt, McCormick & Co.
■
Webster Securities Co.; Richard now
affiliated
with
Hamilton
Prizes: Eugene C. Travis, Harri¬
E. Phillips, White-Phillips Co.
man Ripley & Co., Chairman; Lee
Management - Corporation,
445
H. Ray, Continental Illinois Na¬
Tennis:
DeWitt Davis,
Welsh, Grant Street.
tional
Bank
& Trust Co.; Jay

L. Eaton,

E. J. Busick

Mgr.

Baeke
New

Auditing Dept.

&

Wall

36

Co.,

Street,
the

City, members of

York

Y

New

"

o r

k

Ex¬

Stock

Arthur M. Krensky

have

jSeKS "

Golf:

n-

a

■

Edward

of

IWK&S

&

Joins L. A.

Emrich,

J.

Sampson

Wm.

Hess & McFaul Add

Chairman; Milton S.

(Special to The Financial Chkonicle)

Frantz,

A.

Gene

Blair & Co.,

Busick as
Manager of

ggl W^BL||||

Bank

National

City

Trust Co.

nounced the
appointment

49UK ^
v

Simon,

changes,

x

3

Ira

J.

Kaufman

Vire-President

Krensky

&

Co.,

was:

Inc.,

14i

vH

Julien
Rogers,

Collins
Jr.,

&

PORTLAND, Oreg.

Co.;

McMaster

—

Bell is now with Hess &

Orvis Bros. Admit
Orvis

Brothers

&

Co

connected

of the New York Stock Exchange,

William

nette,
with

Jr., has
A.

L.

become
Co.,

Huey

Building.

.

Ferguson

will admit Thomas A. McKay

-

partnership

Sept. 1.

on

Mr- Busick
formerly
a

lead¬

a

public

accounting firm. A graduate of the
School

of Commerce,
New York
University, he is a certified public

accountant.

Washington Natural
Das Shares Offered
Barrett Herrick &

Co., Inc. and
associates on Aug. 16 offered for
public sale 238,632 shares of Wash¬
ington
stock

Natural
£1.25

at

Gas
per

Co.

offering, 213,578 shares
sold

for

pany

the

and
cf

account

account

25,054

common

share.

Of

of

the

shares

certain

com¬

for

selling

holders.

the

being

are

the

stock¬

~

The company's share of the pro¬
ceeds from the sale will be used

to retire $53,250 of notes and for

working capital.
The company's,
outstanding capitalization consists
of 913,768 shares of common stock
of 10 cgijts par value:

'

:

;

.The company is engaged in. the
exploration and' development of
and oil properties

gas

on

in

owned

Upshur,
Barbour t a

Webster,

acreage

Randolph,
n

d

Lewis

•

Counties in West Virginia. It owns:

drilling equipment and has
terest in

a

the

gas and

an

in¬

pipeline to market its ^
gas

of other producers.

fcfpal Bond Club
Of

Chicago Field Day
111.—The' Municipal

CHICAGO,
Bond
its

Club

19th

of

Chicago

Annual

Medinah

Field

hold

will

Day at the

Country Club

on Friday,
The outing will be pre¬
ceded by cocktails and dinner on

Sept. 16.

Thursday, Sept. 15, at the Union
league Club of Chicago.
Guest
tee,
$35;
non-resident
member, $20; and member
$10. Checks should be made
able to the Municipal
of

fee,
pay¬

How Circleville

Bond Club

came

Chicago.
Members of the Committee

Arrangements: John T. Boylan,
A.

G.

Becker

Edgar

S.

Chapman &

&

Co.,

Chairman;

Beaumont,
Co.;

Farwell,

Frank

C.

Carr,

John Nuveen & Co.; John X. Ken¬

nedy, White, Weld & Co.; Robert
and Ralph N. Youngs-

J. Taafl'e,

First National Bank & Trust
Company.

ma,

Reception: Don G. Miehls, Wm.
Blair & Co., Chairman; Elmer G.
A. G. Becker & Co.;
Charles R. Wilson, Smith, Barney

Hassman,
& Co.

"Mylar" is Du Pont's thin, transparent
ester

film—very strong and with

Roland

C. Roos,

Mullarey, Wells & Co., Chairman;
John H. Kramer, Harriman

Ripley
& Co.; Raymond B. McCabe, Halsey, Stuart & Co.
Paul

Transportation:

tion

poly¬

the "Mylar"* City

high dielectric

the market has uncovered a

wide

range

In its search, Du Pont

of

Du Pont is

sites. Final decision

ists—each

an

an

will

place to manufac¬

is made by

a

Send your

team of special¬

such

conditions, water supply, taxation,

as

plant,

a

a

C & O Pin-Point Survey

give detailed information on all the factors

that would influence your own choice

old hand at picking plant

expert in one phase,

coopera¬

Development Department. If you are seeking a
location for

production, Du Pont was

looking around for the ideal

had the full

Chesapeake and Ohio Industrial

of the

tion

polyester film was being

readied for full-scale

nearly met all the speci¬

fications.

industrial and decorative uses.
While "Mylar"

Over 100 possible sites were con¬

the location that most

"Dacron"
polyester fiber and in the short time it has been

on

costs.

sidered before Circleville, Ohio was chosen as

strength. Chemically it is related to

ture it.

Entertainment:

to be

are

Harry Hammond, General Chair¬
man.

of

ders,
E.

&

Renshaw;

White,

Floyd

Weld

&

W. San¬

Co.; James

Harper, Paine, Webber, Jackson

*"

Mylar" is Du Pont's trade mark for its polyester film.

Chesapeake and Ohio Railway

& Curtis.

Municipal
J.

Trust Shares: Byron

John Nuveen & Co.,
Chairman; Andrew
D.
Buchan,
Sayre,

Bacon,

Whipple

&

Co.;

Kenneth




SERVING: VIRGINIA

OHIO

•

INDIANA

site.

velopment Department, Cleveland 1, Ohio.

transporta¬

Stephens,

Paine, Webber, Jackson & Curtis,
Chairman; Paul Hackbert, Rod¬
man

a

inquiry in complete confidence to

Chesapeake and Ohio Railway, Industrial De¬

living

•

•

Wall"

Street, New York City, members

was

with

14

DENVER, Colo.—Dean B. Bon*-

McFaul,

American Bank Building.

Hutchinson & Co.

Huey

(Special to The Financial Chronicle)

associated

ing commercial bank and

M.

West

Jackson Boulevard.

Audit Depart-

M

elected

Arthur

of

the

£dwa> d J. Bu»«

Co.

CHICAGO, 111.—Effective Aug.

Davis & Co.

change and
other
leading
E

21 J

Ira Kaufman V. P; of

liam

•

Bache

•

WEST VIRGINIA

MICHIGAN

•

•

KENTUCKY

SOUTHERN ONTARIO

to "

•4

22

( 686)

The Commercial and Financial Chronicle

Railroad Executives Discuss Outlook for the
Continued

from

20

page

Faster

local
•whether

this respect we refer par¬
railroad and the increasing
develop¬
True-Train service which is

On

tion

tne

of

the

fall

Insofar
tinued

last

as

service

passenger

we

see

is

is

now

concerned, it has

approximately 5%

use

of

the

forms

of

transportation,

during 1956.
Nineteen fifty-six could

be

a

red

letter

railroads

are

The

con¬

New

D.

J.

will

year

have

of

Of course, even

we

of

railroads

in
the

United
of

States.

The

of

the

J.

Kufebeli

continued

building in

high

level

practically all areas, of increasing indus¬
trial output and
sales, and of the sustained large volume
of consumer income and
expenditures, has created a
are

particularly well situated

the high volume of
nationwide

large lumber producing

areas.

indirectly, by its favorable
within

our

to benefit from

building in that we serve
The high production of

automobiles has also stimulated

our

traffic

directly, and

effect upon general

business

territory.

>

Mineral production and the
manufacture of chemicals
a
variety of other products required for industrial
output have resumed their upward trends.
Plants

processed produce

of farm, field

continued gains are in
prospect,

and orchard,

taking into consideration
fluctuations arising from local
conditions. The
long drouth in Central and West Texas
was dispelled
by good rainfall in most of the area
during
July, brightening fall crop and pasture outlook
more

seasonal factors and minor

than in the past several
years.
We look for continued
growth of the
by our lines. This territory has

population gains of the nation.
shows

no

sign

of

slackening.

tinually being established.
sources

of

results

have

natural

resources.

timber,

discovered.

As

copper,

New

the

more

consolidation

fuel

Central

are

of

I

making

am

York

Central

cannot

1955.

3954.

One

reason

are

petroleum
are

large known

of

no

and

various

due




are

N.

handled

volume.

Dieselization,

H.
President, The

that

passenger revenues
for this year, and we

for

hope

more

deficit trains.

E.

As

the

the

month

first

of

quarter

and

we

However

of

the

the first half

as

to

how

"T

ahi. optimistic,, but

the

see

well

had

998.

It

second

results

well is

so

far

so

because

in
we

E.

quarter

earned

we

$241,600.

Our carloadings for

running 23% ahead of last
and slightly ahead of July, 1953.
are

prospect of the steel in¬

operating

at

very

capacity for the rest of the
other

industries

operating

levels,

we believe

that

462
N.

Shields

of

about.

other

our

a

be $3.00 per

the

year

at

our

$121,000.

to

and
high

conservative
year

share prior to

The

Internal

increase

close

earnings for the

adjustments.

will

repeal

of See.

Revenue

tax

and

Code

liab'litv

we

will

by

have

tax

adjustments of about $30,000. We expect to
out this $151,000 in tax
adjustments in our
„

charge

December
have

the

cents

a

statements, and this year-end adjustment will
effect of reducing our
earnings by about 50

share.

While

earnings after tax adjustments of

JOHN

$2.50 will be less than the $2.80 earned last
year, 83 cents
last year's earnings were due to
nonrecurring tax
/
*
-

The

this

year,

earnings

gross

of

For
com¬

$203,-

is

not

half

expected

will

equal

net

for

the

that

of

the

heavy main¬

our

last half of

W.

SMITH

long-range outlook for The P&WV is very good
we have
along our railroad what we believe to

-

Last year this

time, the country was emerging from a
period of financial adjustment which it had entered
shortly after the end of the Korean War. There had
been
the

some

felt

concern

adjustment,

the

downward

:

As

into

positive

compara¬

:

from

that

economists, have

possibility of
To

fortunately,

was

a

of

us

a

some

mentioning

mild national in¬

the

Seaboard, this
The Seaboard

likely.

seem

the six

such

recently

been
a

negative

of

movement

a

nature

southeastern states

of

Virginia,
the
Carolinas,
Georgia,
Florida'and'Alabama, and the gen¬
eral economy of this area continues
to
develop at a rapid rate along
sound and healthy lines.
One

of

the

condition
and

is

reasons

that

diverse

:

probable severity of

fact, the so-called

adjustment.Turned
aspect

the

■-»"

matter of

a

about

but

trend

tively slight.

for

this

these

states

have

industries -which

John

W.

Smith

good
attracted

hew

many

have

given even greater
promise to the areas in which they are located. In the
past four years—from 1950 through 1954—the popula¬
tion in the six states the Seaboard

18.776,000

to

important

one

20,381,000,

a

The

serves

sizable

increased

growth

and

a

business

consistent and

from

very",

volume

in

area.

these

six

states

has

shown

dynamic growth,

which is indeed a true
reflection of the increase in population.
For instance,
from
1939 through
1954, the business volume in the
six states mentioned has gone from $14,604,000,000 up to
$75,058,000,000, or about $4,000,000,000 average gain each
year during the 15-year period.
As

further

a

faith

in

the

area

it

serves

indication

continued
it

has

of

the

Seaboard's

box

and

200 covered

cars,

cars,

has

a

10

new

confident

upward trend of business
at .this

time

lightweight stainless steel passenger

cement

•

considering the steadily developing retail.

trade and business volume of the

of

credits.

because

the

the year.

Simpson

does not

79 cents per share, making our net
for the first six months $383,200, or

will

$20,000,000.

of

President, Seaboard Air Line Railroad Company

serves

As a result our earnings for
disappointing, amounting to
$141,600, or 47 cents per share. In the:

1955

with net income

over

tenance program for the

flation.

were

tax

to

rev¬

year,

first half because of

the New

March.

estimate of

Co.

expect

we

209,429, with net income of $12,645,-

H.

year.

With the

Railroad

it,

see

something

or

R.

Ohio

now

for

enues

neces¬

SHIELDS

dustry

main-

We're moving ahead on

doing

second

of

have roundly $400,000,000 gross

pany

yards.

Pittsburgh & West Virginia Railway Company did
begin to feel the effects of the upturn in business

until

mechanization

SIMPSON

Baltimore

on

The

not

district, we
improve steadily

tenance-of-way operations, central traffic control, and
generally improved practices should all add up to a
greatly increased earning capacity for the railroad
industry.

manage¬

President, The Pittsburgh & West Virginia Rwy. Co.
..

other

airways,

1956 will be about the
same as
for further relief in the
removal of

new

to

R.

continually being

31%

expect

we

in

rapidly increasing population,- industrial expansion,
modernization there will come an
ever-increasing

the

an

We

the

income

affairs

re¬

number of
passengers using our trains
greater than in the prewar year 1940.
revenues for
1955 have been lower than in

operation.

the

fluctuations

our

and

Perlman

taxes.
I expect this bittersweet
change before long.* When we are
paying income taxes, lots of them, the Central will have
begun to come into its own.
state

con¬

primarily to the discontinuance of certain
trains that failed to attract
sufficient traffic to cover cost

of

end

help but be when I

paying

are

predictions

no

will

industries

new

traffic, leaving

is on the threshold cf
of opportunity ever experienced.
With

era

railroad, too;

year

are

operate in States that have excellent net¬
highways and an increasing number of

Passenger

the

in

belief that the nation

my

repairs.
with

its 1

The

greatest

traffic

have

we

physical problems.

problems

we

was

and

studded

of

to

the

much work at tremendous

as

as

$1.26 per share..

industries

nevertheless, the
1954

Alfred

a
new concept of
equipment, personnel training and develop¬
ment,
improved accounting, corporate simplification,
incentives for employees, etc.
We may not be moving
as fast as we would
like,, for there is a long way to go.
But we are moving as fast as any optimist could have
hoped for a year ago, and the future looks good.

industry.

in

is

It

$7;
last"

passenger

example of the search to discover
of the resources that
may still be hidden, Southern
Pacific is now
conducting on its own land of more than
4 million acres one of
the largest
geographical surveys
ever made
by a private

Although

1955

achieved

to do

these
wide

coal traffic volume will

our

may have been when this was a string of
roads, now they are a series of stoppers, clog¬
traffic.
We have made a start at'consolidating

These

the

of

tracks

costs

is

to

in the years ahead.

they

some

works of

us

two

standpoint

operating rates.

shop facilities for more effi¬
repair work, the beginning of electronic signalling
with

ware¬

estimate

year.

greater diversification

a

digestion

other

I

per

less vulnerable

believe that

for

which should have taken
place never
than started. We are pressing forward

experienced the largest
Residential construction

resources

and

than

been

July

There

now

ago)
of

revenue

Furthermore, our coal traffic is heavier than it has
been at anytime during the
past three years. The P&WV
straddles hundreds of millions of tons of
virgin coal
which up to the present time has not been mined
because
of market conditions.
With the increased demand for
coal and the depletion of other mines in
the

The

period

same

territory served

New

steel

classification yards for the most efficient operation.

pro¬

ducing petroleum products and chemicals are
operating
to capacity.
With the sustained large demand for

our

itself

are

million

more

P&WV

these
and we are working with
Carnegie Institute of
Technology to determine the best location of our major

close

and

The

right

million
year

($.50

of

the

and

fresh

vHll provide

improved

our

conservative

a

In addition to increased
revenues,

in

took

ging

very

favorable business atmosphere.
Our lines

provide

owners.

with

light manufacturing and

housing. We believe that
potential, from a
gross
P&WV, is about $500,000

office, and by more efficient operations.
They have not been achieved at the expense of the prop¬
erty.

sary

Oonald

on

in

produce

smaller

lines

effect

should and

we

in
part
by speedy
cost
controls,
something the railroad lacked when

The

currently is reflecting the
business
activity throughout the

of

in

millions in

that

industries will

large traffic volume, collectively these indus¬
a sizable amount of
freight revenue.

a

will

four,
and in the installation of new devices like the
spectro¬
graph and electron microscope which are saving us

year.

trend

as

people

months

seven

deficit

a

savings

have

of these

one

of floor space suitable for

tne

as

trying to do

are

income

which will enable

this, I

favorable

first

cient

continued large expendi¬
can
be considered significant. In 1955
we
are ex¬
pending a record $115 million foj;
improvements, taoping
the $109 million invested in
1953, the previous record
our

we

far show in

net

against

the

of

people run¬
with the times if we are

the New York Central.

our

with

our

of

what

so

really got

tures

Freight traffic

produce
tries

When the Central's component parts were consolidated
the present great system, the
process of

pros¬

earn, for reasons
known.
In view of

well

believe

return

While not

the past few weeks we hit the
jack pot when
Parkway Terminal Company decided to locate a
Thirty-Million-Dollar Planned Industrial Development
on our railroad
adjacent to our Rook Yards. When com¬
pleted this terminal will contain two million square feet

their hands.

is

on

industry—and

good

into

railroading.

to

operations

and rationalization

perity, the railroad industry, by tra¬
born of
necessity, has had to
proceed cautiously because of the
able

An

Within

power to per¬

position
($76
against $26' million a

and

dition

rate

our

the

cash

$700

during times of

in

ment

portation service have been vastly in¬
by these investments and by
our intensified
research activities to

of

up

methods to work

and

now

con¬

creased

ways

for

that

industry have the

results

made

over

confident

These

physical improvements.
The efficiency of our
railroad, and
our
ability to give top grade trans¬

better

am

That

for

uncover

sound investment

placed

ability to handle all the growing traffic.

expenditures

railroad
only as

customers

our

I

tools

Pacific, and

this

of

postwar

are

more

year).

our optimism is the
fact that
solely controlled affiliates by the

million

serve

million

Best evidence of

the

form this transformation if the

RUSSELL

about the prospects for
growth of business for the Southern

our

for

Central—is

a

the

for the

year

definitely optimistic

tinuing

been

and

more

PERLMAN

E.

We have to catch

going to

respon¬

President, Southern Pacific Company

low

our

outlook

York

ning it.

as

improved earnings—more in line with what the railroads
are
entitled to receive
considering their return on in¬
vestment, as well as increased expenditures for
expand¬
ing and modernizing the railroad
plant, the net result of
which would be
improved service to the public.

end

attracting
transportation facilities.

ALFRED

if it produces some
favorable action on the
Weeks Committee Report with
more equitable treatment
of the railroads in matters
where they are subject to
unfair
discrimination, particularly with respect to treat¬
ment accorded
their competitors.
The result would be

our

continue

President, New York Central Railroad

under

private automobile,

The

area.

acres.

the

immediate prospect of any reversal

no

of this trend

about

soon-to-be-opened pipeline service in the Pacific

Conway Yard (near Pittsburgh) in
extremely helpful.

subsidized

as

am

our

new

be

Increased

sible and

I

about

controlled

expanded trailer-on-flatcar service,

our

Southwest—should
business to

decline and

to

year.

•well

operations,

Pennsylvania, the placing in service of a por¬
Hollidaysburg Car Shop and the eastbound

will

for industrial sites in the

acreage

railroad.

electronic

new

the

portion of the

Industry

remaining

hand
and

commonly known

be the best

rebajllasting, diesel power, many
cars, centralized traffic control, radio and other im¬
proved communications, mechanization of many former

in

new

"Piggy-Back."

as

both
by our in¬
yards,
line

traffic,

changes, heavier rail,

our own

ment of our

of

movement

transcontinental—brought

vestments

fields of activity—in

new

ticularly to

and

flexible

more

Thursday, August 18, 1955

.

.

plots range in size from 25 acres to 2,000
intensive campaign to attract new industries
to our line was
inaugurated about a year ago, and to
date we have closed
agreements with seven concerns
that have located or will locate their

continuing

operating improvements and in¬
creased efficiency can fully offset such
wage increases.
Nevertheless, there will continue to be improved
oper¬
ating technique and efficiency as well as
expansion in
the

and

.

phosphate

on

cars,

cars

in the

25

order

new

1,000 all-steel

and

200

covered

diesel electric freight locomotives,

rebuilding

program

underway

Continued

on
on

12

other

page

24

*

Volume 182

Number 5456

.

.

s

,

two

This

Editor, Commercial and Financial
Chronicle:

Unsolicited
the

aid

I

of

have

Dr.

to

W.

come

to

Randolph

Governor William McC.
Martin, Jr., the National Associa¬

Burgess,

tion

of Manu¬

and

facturers,

Gold

the

The

Miners.
article

in

of

4,

"The

N. A.M.

Study

and Irredeemb 1

a

Cur¬

e

rency," by Dr.
Walter

Gutinann

K.

be
go

unchallenged.
After

this

amine

the

preamble,
facts

to

let

us

ex¬

if actually

see

"our gold stock is more then ade¬

quate

to

currency"

support
as

my

a

redeemable

opponent

con¬

tends.
In

the

first

double-eagle
ounce,

place, as the old
minted at $20 an

was

the

able

new

double-eagle,

in

for

an

ounce,

would have to have

half the size.

according

to

definition, a dollar
one
thirty-fifth of

is
an

1934
equal to
ounce
of

have

basic

its

been

functions

in

Third,

with

1955,

•

wheat

at

$2 and wages at $1.90 on the aver¬
we have to face an entirely
different situation. To reintroduce

age,

a

coin

in

1955

the

at

1934

basis,

which the author proposes, would
that

mean

we

order to

fail to do that, the standard

we

will

never

corrective

regain

its

inherent

powers.

Fourth, if we attempt to push
prices back to the 1934 level,
would create by this endeavor

all

we

the most beautiful case of violent

deflation

anybody

We would

condition

has

seen.

ever

simply invoke the very

hard to
build
up
a
defense against in
depth, knowing that it would be
socially and politically a ruinous
we are

trying

with

the idea

of

our

other
same

The

it.

so

France

Nostalgic

are

worthless.

The

situation

kind.

in

Sixth,
these

Bills

we

ratios

now

look into

and

their

coverage

circulation

in

I

defend

above

I

am

unsolicited

Miners

Gold

have

I

and

forced

are

to

sell it

liquidable assets for the purpose of
converting them into gold would

somebody else.

total

of

$665

that

taken

not

into

John

over

Fifth,
under

a

an

gold

these
that

ounce

we

coin

circulating

conditions
would

give

would
away

of gold at $35 (1955

dol¬

lars) instead of at $35 (1934 dol¬

is

one

tential

eign

of

that

of

times.

short-term

credit

it

for¬

of

It

retiree!

a

limited

part¬
be¬

Co.

&

Salomon

L.

effective

partner

July 1.

Robert J. Connell Opens 1
(Special to The Financial Chkonicle)

,

DENVER, Colo.—Robert J. Con¬
nell,

Inc.

has been

formed with

offices in the First National Bank

Building to engage in a securities
business. Officers are Robert J.

President;

Connell,

Everett,

T.

Bohlen, Vice-President; and M. M.

Carpenter, Secretary. Mr. Con¬
nell was formerly with Brereton
Rice

It is small wonder

&

Co.

Form Interstate In v. Co. !

the way side and

by

DENVER, Colo. — Interstate In¬
vestment Company
has been

million

$200

in former

formed

just

had

happen

to

Third

it all is that

The joker of

all

other

Is that pure or

is highly misleading not

are

referred to.

poor

coincidence?

prices

offices

with

Avenue to

curities

to "King

business.

East

2740

at

in

engage

a

Officers

se¬
are

Omar E. Garwood, President;

Gold," the monetary metal which

balances.

They amount to $12 V4 billion to¬
day.

F.

in

came

production is $60 million in¬

stead

consideration,

holders

Jr.

Eck,

three-fourths of this in¬

dustry fell

single cent for the po¬

claims

van

Lewis G. Salomon general

move.
nor

C.

from Steckler & Moore July 31.

the

In

Byck will be consid¬

S.

the Exchange on Aug. 18,

ered by

(Special to The Financial Chiionicle)

bring the Federal Reserve banks
below
their
legal requirements.
Insurance with over $300 billion
is

Maurice

at

the howl if that had happened to

a

1955.

firm

Transfer of the Exchange mem¬

$35 in

billion.

to

Exchange

bership of Ferdinand A. Straus to

and take

Withdrawal of only IV2% of these

in

*1

changes:

to

meantime,
they have had the same increase
in costs and wages as any other
industry.
I would like to hear
$35

'

has announced the following

demon¬

had to sell their product at
1934

j

N. Y.
1955

8,

j

[

The New York Stock Exchange

proof

of this opinion.

hope to have
incongruity.

the

GUTMANN*

Room 1603-4

New York Stock

exception to the detached "re¬
marks heaped upon them." They

lion; bank deposits are $200 bil¬
lion; government, state municipal,
and
local
obligations are $250
billion
(outside of permanently
established funds); and corporate
securities are $175 billion.
This
comes

August

author

Equally

bil¬

$30

are

basis.

ol

New York 4,

strated this

•

must

the

action

no

march

the

Dr. ERNEST R,

and his group
contend
that our gold
stock is
more than adequate to
support a
redeemable currency at the 1934

changed with it. There is no such
thing as "Inflation without Tears."
Inflation
is
partial repudiation.
The difference is only in degree,

Only

if

Even

gold,

on

60 Broad Street,

ner

this opinion.

completely changed and the ex¬
perience
of
the
public has

not

given

conclusive

Association of Manufacturers is oi

got

reminis¬

historic

withdrawal

to

as

cences

and

came

taken

events will force the issue.

Weekly Firm Changes

furnish

has

in

of

is

the author de¬

ratios

example, in France,
the government has $550

soul

as

(facts and figures are official and
easy to verify) that we have to be
satisfied
with
the
gold bullion
standard
and
that
a
gold coin
standard
is
beyond reach.
Dr.
Burgess is of this opinion. Gov¬
ernor
William McC. Martin, Jr.,
is of this opininn.
The National

gold, and the citizens
have $4 billion in boarded gold,
the

Brass doubled!

us.

reasoning

should

practical
where

as

nations, which have the
right to protect the savings

mands for

people anxious to pro¬
their savings.
To give one

million

potential danger

of their citizens

many

tect

to mini¬

or

place at all in this discussion, that
is, gold held in safekeeping for

tion in 1955—1934 dollars.

would have to push

prices back to the 1934 level
arrive at equilibrium.

all

the




0.75

Only at this level

standard

fulfill

to

mean

Second,

(in

1934

wheat and

which would have to be minted at

$35

ever

according to the 1934 definition.

If

to

cents"

the

would

called

not

0.75

cents for wages.

after

allowed

appearance

had

was put out of
by law),
it would
belonged "to a price level

have
of

in

author)

coin

a

par

claims,

the
does, because $2% billion
in gold were actually withdrawn
in the last six
years in this cate¬
gory.
Earmarked
gold has
no

pressed

by

coinage

reality,

(here¬

should
£.

E.

such

on

the

author

bargain, which would be taken up

commission

Spahr
the
Dr.

it

the

"Chronicle'

Aug.

If

made

shrinkage of 48%

Or, ex¬
conversely, a value of
$67.34
(1955) would be put in
circulation at $35 (1955), really a

standard is out of reach."
gold.

a

substance
away
at
$16.83 (1934) because we would
circulate by contract and defini¬

indicate that our
gold stock may not be adequate to support a redeemable cur¬
rency.
Concludes we must be satisfied with a gold bullion
"a gold coin

is

giving

Dr. Ernest R. Gutmann present arguments to

as

periods is

mize

in that part of our monetary unit
in which we are off the standard.

Takes Issue With Dr. Spahr
On "Irredeemable Currency"

standard

to include these

The difference between the

lars).

LETTER TO THE EDITOR:

25

(687)

Chronicle

The Commercial and Financial

.

Durwood

D.

Vice-Presi¬

Vernon,

Hellbush,

dent;
and
Cecil
E.
Secretary-Treasurer.

•

When the struggle
and

South

between the North

ended, pioneers of vision

turned their

hopes and dreams to the

West, guiding the destinies of the rail¬
roads

as

they followed the rivers and

consummation of the vision and dreamt
of General Palmer and his

CF&I and its Western railroad
have

mers

buffalo

trails, pushing their

way

west¬

ward.

the

William

Palmer,

one

of

realized the neces¬

sity of transportation to build thriving
cities and industries in the develop¬
ment of the vast Western

Empire. He

found rich

deposits of coal, iron ore,
limestone and raw materials, the basic

elements for
to

a

steel industry,

supply transportation in building

needs
the

founding

independent of the East. Thus,

custO»j

pace

with;

Empire. With the continu¬

ously increasing volume of

J.

Lincoln's appointees,

progressively kept

rapid expansion and growth of thia

Western

General

worthy con-'

temporaries.

Western railroads have been

alert to safety
means

needs—to new, improved

and methods for

cient performance.
these

and

traffic/

constantly'

assuring effo

Equally apprised of

objectives, CF&I has designed

produced two improved rail

tions, and these

new

sec-|

CF&I 136 and I Pi

pound rails have met the approval of/
and

adoption

sive Western

as

standard by, progress

roadsv

pioneer predecessor Company of

CF&I

was

mands.

formed to meet these de¬

This

again exemplifies CF&I's coopera¬

tive

policy—"Not merely to sell; but to

serve

...

not

only to make good

steel(

products; but to make them still better,
not only to fulfill today's require-',
...

ments; but to anticipate

tomorrow's."

24

(688)

The Commercial and Financial Chronicle

Railroad Executives Discuss Outlook for the
Continued from page 22
locomotives

diesel

and

W.

300

gondolas,

all

at

The mood of the

about $19,515,000.

The Seaboard
as

forward

looks

time that will show

a

pansion

in

the

about in the

come

it

states

immediate

The

serves.

in the past 25

area

future

greater and faster

even

an

the

to

growth

ex¬

than

is amazing.

years

they

Seaboard's record in the past gives every reason to have
confidence in its ability to continue to grow with

many

the territory

a

serves.

the

II.

improved this
with
for

the

lions

that I can see nothing to interfere
having one of the best years, both
net profits, that they have experienced
for quite some time.
The only ob¬
stacle for this result to obtain
be their

inability to supplly shippers
adequate number of freight

an

particularly box

automobile

industries

steel

and

flourishing and with

almost

an

building program
continuing, the railroads should have
much greater

tonnage available than
with the bumper grain
still to be transported the ton¬
outlook,

is. indeed, promising.
hoped that shippers and
receivers will cooperate, in loading
and unloading cars with utmost dis¬
nage

H. H. Simms

is to

patch

able for
As for

our

avail¬

cars

frequent service.

more

railroad, I believe that we will surpass
tonnage by 7 or 8% and last year was one

last year's
of

to irake those

own

best years.

our

G

President,

Norfolk

About the

II.

SMITH

and

Western

Railway

Company

time last year we pointed out that our
business and resultant net
earnings during the first seven
same

months of the year had been
quite

pared

with

previous

Disappointing

but

years,

that

The

the

.

.

of

economy

the

moved

steadily forward.
mid-year the forward momentum
by

rising

income

and

ex-

of

employment

upward, a situation
ti.roug out the last half.
Present indications
firms

ness

will

and

that

are

remain

is

likely to

;

has

••

for

tie

immediate

h

-

plant and equipment is expected

new

-continue its rise.

.

,

to

supply of money appears to be reasonably easy,
although interest rates may edge a little higher and in¬
stallment credit may tighten
up a bit. '
Present indications are that both the
gross national
income and personal income for 1955
should surpass that

;

v

0,-

•

■

Businessmen and economists
generally are agreed that
the outlook for the last half of
the year is good
and the present level of business
should carry over into
.

.

.

1956.

From

the

standpoint of the

and

vo.u.ne

gross

revenues

railroad

are

industry, traffic

running ahead of

1954,

ti

first half.

to

expected

take

advantage

increased

volume

of

of

toe

eral

The

anticipated

improvement

conditions

developed

volume of traffic and resultant

net

our

approximately 70% ahead

net

earnings during the first half of
In

of the

making tnis statement,

1\.

one

be

of the poor¬

which

zation,

by

improved

profitably

ropean

a

cost

a

3.000

less

miles

than

ficial to the public.

few

a

world.

years

ago

mining

wage

highest in the world.
Aside

the

have

high

volume

and, in addition,

twice

new

and

early

of World

than 150%.
as

much

rates,

as

the

much

This

is

A

principal

true

are

the

same

the

car

car

on

our

today

cost at the

wages

of

anything like

industry.




well

beginning

war.

railroads'
an

of

rate

was

businessman

adequate.
veh'rn

is

inflated
tization

was

Railroad

other

a

very

return

Corp.

for

And

the

this

even

misleading
by

reduced

due

to

and

poor

one.

last

only 3.75%, which
will recognize
as

by

maintenance

adequate
in

good

dividends

order

deep

up more

Freight

revenues

equal proportion.
our

railroad

in the public interest.
accomplish these things—■

to

and

have

we

does

touch

not

World

War

when

I

the

public

to railroad

revision

seen

country became scared.

of

laws regu¬

time

each

man¬

it

was

The first time

was

the

country was scared about
second time after the wave of

its

railroads; and the
bankruptcies of the 1930s when the country was again
scared.
Since then subsidized competition has become
the need for

acute and

more

philosophy of regu¬
So the country ought

new

a

lation is greater than ever before.
to be scared again, but I fear it

isn't, particularly the
a crisis to bring
regulatory authori¬
ties should be keen to give the railroads a fair
deal, and
that's all they ask. Railroads aren't seeking to dip into
the public treasury. That ought to be a novel experience
for Congress.
members of Congress.
about

fair deal.

a

It shouldn't take

The Congress and

S.

YOUNG

R.

President, Atlanta and West Point Rail Road Company,
and The Western Railway of Alabama
Chief Executive Officer, Georgia

During

half

first

the

of

1955

Railroad

lines

our

experienced

labor difficulties which curtailed operations for approxi¬

mately 60 days, and caused a substantial decline in reve¬
as compared with 1954. Following resumption, of
full
operations on May
11,
1955

and

in

any

must

earn

the

long

over

pay

cuts

good

wages,

give good

serv¬

gratifying volume, although complete recovery was not effectuated
until sometime later. At present the
level of our tonnage is rising, and

|

,

|

anticipate further increases in the
months
ahead.
Appraisal
of .our
earnings for the year cannot be fore¬
cast at .this time, but with continued
we

growth

in

volume

income

net

-

expected to exceed the 1954 figures.
These lines are in the group of
Class

I

carriers

referred

;

|

is,

to

.

-

as.

"smaller

railroads," and a substantial
volume"' of our tonnage
represents
through or overhead traffic. In order
to maintain a competitive position,
these lines must, therefore, rely upon
schedules.

The Atlanta and

s

R

fast

Young

dependable

West Point Rail Road—The

Western

Railway of Alabama operates between Atlanta,
Georgia and Montgomery, Alabama, two fast through
freight trains in each direction daily, while on the
Georgia Railroad between Atlanta, Georgia and Augusta,
Georgia a like number of through fast freight trains are
also
operated in each direction
daily.
In addition,
closely coordinated schedules are maintained between
West

and

Point Rail Road

the

on

one

hand

mictm

the

Georgia Railroad on the other. Adequate local
freight service is also operated by each of the three lines.
To

provide expedited service on connecting line ton¬
to, from or via our lines, we maintain through
schedule arrangements with the Nashville, Chattanooga &
nage

St. Louis Railway and Louisville and Nashville Railroad
at

Atlanta, Georgia; with the Atlantic Coast Line Rail¬
Charleston

and

&

Carolina

Western

Railway

at

Louisville and Nashville
We

also

mont

Limited,

through

Railroad

operate the Crescent

both

which

of

at

Selma, Alabama.

Limited and the Pied¬
modern

are

equipped

trains between New York and New

passenger

Orleans via the A. & W. P.—W. Ry. of Ala. In addition,

operate

we

between

local passenger train

one

Atlanta

and

Montgomery

trains daily between Atlanta and

is

through

a

train

in

each

and

two

Augusta,

operating to and

one

from

direction
passenger

of which

Wilmington,

North Carolina.
We

are

trial

encouraged about the potentialities for indus¬

development

along

our

lines.

This

already experienced considerable growth
tion,

and

prospects

further

for

territory

has

in this direc¬

development

are

very

bright.

Committee Report, if
ihto legislation, would offer
•,
■
a
partial
solution
to
inadequate
earnings because its basic philosophy is to remove some
shackles
that
prevent
the
railroads from
»V

returned to-our lines

traffic

in

amor¬

Like

railroads
to

in¬

because it is
income
tax

some

return

pull

any

rate of

accelerated

expense.

business,

low

12

ice.

back

fastenings costs 2% times

the

year

months

post-

railroad

costs

have gone

beginning of the

source

Hudson

The Cabinet

optimistic about the future for

and the railroad

the

the situation is the tre¬

freight

A mile of rail with

we are

last

The

the

industries located along our line

II, and railroad

it did at

from

&

wrong

as

manufacturing

1954 and

the

not

Augusta, Georgia; with the Savannah & Atlanta Railway
at Camak, Georgia; with the Louisville and Nashville
Railroad at Montgomery, Alabama, and likewise with the

WHITE

acciuais

the cost of railroad equipment and

as

have not gone up in
But

to

after

road

was

'

material.

War

coal

bene¬

prove

with the railroads that ade¬
quate profit won t remeay. The public should not be
misled by a comparison of this
year's earnings with last,

produce

beginning to get the advantages

disturbing feature of

as

now

supplier of

recovered

1953

basis.

mendous increase in

over

can

industry, other

we are

of the traffic from

maintenance

nothing

which

England, which

in the last few
years.

The only

is

spite of the fact that the Ameri¬
is by a wiue margin the

generally

Korean slump of late
a

There

the Eu¬

countries

because

and

President, The Delaware

scale

coal

Transport Policy and Or¬

'

'

an

from

industries

large

a

And it is true in

coal

coal

with respect to

even

the

Presi¬

helpful in bringing about greater

WM.

mechani¬

in

away

those

originally self-sufficient in

This is true

on

it

lifetime

our

is

its out-

necessary

help

lating transportation only twice, and

the Atlanta

and preparation plants are
quality and at a cost which permits

to sell

at

areas

for mine

sums

In

which
covers

..

cleaning

producing coal of

of

some

of the immediate needs of the railroad

years.

of tremendous

on

upon

Report of the

have

we

The outlook for the balance of the
year and the future
Coal production is again on a good level.
Export coal is moving in
substantially better volume
than for several
previous years. This is a tribute to the
resourcefulness of the American coal
producers who
the expenditure

one

the

transportation system, all of which would

is encouraging.

can

gen¬

some¬

increase the efficiency and the
economy of our national

earnings

only

be the

should be

equality of opportunity among the carriers in their com¬
petition for the nation's traffic. It also would serve
to

Jllllill

4*.

it should

However,

remembered that the
comparison is with
est periods
of business and

experienced in many

the Congress

Such action would be

earnings for that period

are

it.

to

seems

revenues

industry.

'

earn-

by

dent's Cabinet Committee

ganization is

ings has continued and, in fact, in¬
creased during 1955 with .the
result

were

does, and such

gross and net

principal recommendations in

earnings for the year as a .whole
were
only about 6% less than the
previous year. The improvement in

them

belief, both

Favorable action

in

and

the

1954.

If it

Unless something now

what better than 1954, but not
equal to 1953.

business

that

e

busi¬

ness.

that

rest is up
agement, and it will not fail.

former

;

The

ing stock,

in

service

nues,

Outlay for

our

maintained

need

that

revenue

Given this help the

purse.

continue

inventory buying by busi¬

substantial

future.

income

consumer

which

erty, including particularly tne roll¬

being

fact

reasonable

new

general upward trend in
national economy, the last half of 1955
should equal

was

railroads

not

,

trend

but behind the peak
year of 1953.
unforseen occurs to upset the

condition

..

tnat

over

during the remaining months of 1954
anticipated and that the prop-*

was

w

has

been

as com¬

improvement

an

of mil¬

prayer

is

penoitures has carried industrial out¬

Voiimer

of 1954.

R.

hope and

high ground.

be

so as

hopeful

a

put and aggregate production to

last year, and

It

world's

war

created
w

un¬

precedented home

crop

is

people the world

Meanwhile,
nation
At

With the

cars.

the

.

'

would

with
cars,

prevailed

gradually will subside
and
eventually
die
out
completely.

year

and

the

of

cold

toe

railroads

gross

Conference

of

wMcn

powers,

is

It

/

considerably

so

leaders

The

cost

Thursday, August 18, 1955

.

Industry

the

accept

help that is

great

a

sign.

President, Atlanta & Saint Andrews Bay
Railway Company
The national economic picture has been

Geneva

atmosphere

tne

major

SIMMS

for

been

recent

friendly

among

H.

have

better today

are

years.

At

full

it

of-pocket

people of the United States today is

Prospects for the realization of both

must

sufficiently used to provide

that of peace and prosperity. In varying degrees, a sim¬
ilar mood exists throughout most of toe world. -

has

that

which

VOLLMER

President, The Texas and Pacific Railway Company

of

cost

a

G.

.

.

want

Government

enacted

water carriers

regulations,
are

not

to

which

air,

highway

and

subjected, have tended in the past

..

.

.

meeting their subsidized competition.
another

forms
poses

pliilsophy

of

must

transportation

facilities

that

are

be
that

adopted,
use

for

provided

But,

adequately
in addition,

namely,

that

commercial

with

public

all

pur¬

monies

must

pay an adequate user
charge therefor, and that
applies to highways, airways and inland
waterways, be¬
cause

can

is

no

private

enterprise

complete with

equally

as

true

operating

competition that is
with

-

reduce

subsidy

subsidized.

transportation

power.

Also, the railroads must

without

as

it

is

carriers

and

thus

However, recently

have

along with other rail

diminished

their

net

earnings.

Federal legislation has been proposed

which, if enacted, will allow the rail carriers to compete
with other
basis.

forms of transportation on

a

more

equitable

This should improve the net earnings of the

carriers and also create

a

much stronger

rail

national trans-:

portation system.
The

Atlanta

and

West

Point

Rail

Road

This

Western

Railway of Alabama contemplate

with

100

box

-

their

to divert business from these lines

new

cars

and

50

gondola

cars

and

The

purchase

of

at an early date.

Georgia Railroad will acquire 100 additional woods rack
passenger

def¬

icits and in that they need the
help of public authority,

cars

to

accommodate

pulpwood.

increased

demand

in

loading

of

Number 5456

Volume 182

bucket" compared with the com¬

Forms

pany's huge kwh output.

Public

atomic

an

coal
tne

Atomic Power and the Utilities
Edison of New York,

made

million

effort

to cooperate
with the Atomic Energy Commis¬
every

sion and other Government agen¬
cies

development of

the

in

"atomic

power" generating units.

Recent

progress

highlighted

been

new

in this field has
by the Geneva

water,

the
from
York, with an estimated ca¬
pacity of 236,000 kw and an indi¬

March, 1954, Duquesne Light

Company agreed with the AEC to

be

pro¬

duced by a 60,000 kw reactor

plant

the

purchase

of about $233

cost

to

steam

boiler

Wilcox,

&

Babcock

Convention.
In

Point

on

River, some distance

New

cated

be built for the AEC by West-

include the cost of the reactor

to

and

which

etc.,

genera tor,,

were

estimated in the press at $25

mil¬
authori¬
tative figure was, made available.
Assuming thatrthe amount men¬
tioned shoulcl prove correct, total
cost might exceed $500 per kw,
which compares with about $150
per kw for a large fuel-burning
lion

ox*

mqr§,,although

no

plant.
Duquesne Light agreed to buy
the steam at a rate estimated at
mills

kwh, which
was
about twice the production
cost at its new and efficient El4.8

about

rama

fer

Duquesne's of¬

steam plant.

was

the most favorable to the

of

Government
1

per

bids

9

submitted

set

had

producers,

build

plants built in the

steam

it

nevertheless

period,

postwar

considered to be almost com¬

was

where

England

New

in

petitive

relatively high.

fuel costs are

proposals
atomic

structing

private

from

1 for con¬

by April

companies

power

reactors.

Recently, General Electric
nounced
development
of

an¬

available

funds." The Commission promised
that

private

would

receive

a

for the plutonium

for seven years

which

turned out

be

would

fission

producers
guaranteed price

power

a

as

by-product. The Commis¬
a greed to sell or lease

also

sion

thorium,

uranium,

the

to

water

heavy

and

utilities,

or

lease

processed uranium and plutonium,
at "fixed" prices (subject only to
change with the general price
level).

Cooperation

development

and

research
work
would
in

a

large number

of

and industrial companies
research teams to study
construction and operating costs

utility

had set up

costs

various

tric

a

affiliates.

are

a

;

dynamic contribution to the

-

group

nation's business, its economy

engaged in light and heavy industry.

and its payrolls.

have

INDUSTRIAL BR0WNH0IST CORPORATION
A LEADER FOR

78 YEARS

using this

new

type

180,000

of

capacity

a

to be ready for operation by 1960.
General Electric estimates that
this

new

at

produce power
around 6

can

which

cost

will

competitive

be

fuel-burning plants,

it

as

plant

operating

an

is

long

so

operated almost continu¬

Such "base load" operation

ously.

reduces the kwh cost considerably
for such inflexible overhead items

depreciation, local taxes, inter¬

as

and

est

dividends,

claims that the
much

ular

also

It

etc.

dual-cycle type is

flexible than the reg¬

more

boiling

with

reactor

water

respect to handling changes in the
load.

The

boiling

since

types,

in

built-in

own

is

reactor

water

much safer than other

considered

has

its

department.

If

it

effect

fire

the reactor should get out or

(as

happened

at

the

or

year

a

River

Chalk

nand

two ago
Canadian

plant) the water surrounding the
nuclear fuel would

to steam,

turn

fission is dependent on

and since

this type
conversion of water to
would
automatically stop

the presence of water in

reactor,
steam

in

reduction

This

fission.

is

risk

important item in both capital

an

operating costs; it reduces the

and

amount

the

of land

cost

insurance

of

to sur¬

necessary

the plant, and also

round

reduces
safety

and

The AEC recently

authorized

a

headed by Detroit Edison
build
a
100,000 kw plant at

group
to

Typical is the Industrial Brownhoist

gan,

and its

serves

gray

of heavy

dividual

industry, are recognized as

outstanding examples of

modern and efficient pro¬

duction.

and

unloaded

dockside

quick work

railroad, shipyard and steel mill jobs. In¬

cranes

lift up to 250 tons in a

single bite. The
Blue Book

list of Brownhoist's customers reads

like

of American

at work day

industry. Its

cranes are

a

to

handle

one

of the nation's leading

power

heavy

Penn-Texas is

equipment especially

materials.

Brownhoist

Brownhoist

proud of the

Corporation

way

serves

in which Industrial

American

j
industry.j

Monroe, Michigan, to be ready for

t

operation in 1959.
Niagara Mohawk
first

Power is the

utility actually

Penn-Texas

to distribute

atomic-generated electricity to its
The

customers.

tracted

to

buy

con¬

company

power

on

a

tem¬

CORPORATION

i

basis from a reactor at
Milton, N. Y., owned by the

porary

West

AEC.

RESOURCES

BOOK

i

Write for free copy
P. 0. Box 899, Dept.

M, Salt Lake City 10, Utah

This

& LIGHT CO.




land-based

a

(experimental

of

submarine

the

is

power

only 3 mills,

publicity
the

is

of

only

at

a

some
move,

power

a

of
The

cost

bargain rate.

gained
the

by

amount

tained

basis
a

favorable
although
to

"drop

SUBSIDIARIES,

reactor

Electric. Niagara
buying part of the output on an

interruptible

PENN-TEXAS CORPORATION, 111

pro¬

BROADWAY, NEW YORK 6, N. Y.

duplicate)

built by General

company

UTAH POWER

was

totype

be

ob¬

in

th£

and^

night the world over.

manufacturers of diesel

designed

bridges

speed the processes of business by making

iron foundry in Elyria, Ohio, which

the machine tool

travelling

cranes,

Corporation, a

prospering Penn-Texas subsidiary established back
in 1877. Its manufacturing plant in Bay City, Michi¬

Industrial Brownhoist is

precautions.

AREA

,

to be built
miles southwest of Chicago and

44

Consolidated

explains why area we serve offers
tremendous opportunity to industry.

...

of Penn-Texas com-

this

panies represents

related industries.

'

>

In the aggregate

oil, coal and uranium. Still others

the shipping and

nu-

should result in

This plant is

reactor.

group

plant.

gas,

program

The

kw.

will build, with AEC ap¬

Power Group,

Company" to construct a mod¬

erate-sized

as

field. This

substantial benefits to the various subsidiaries and!

living in the nation. Certain Penn-Texas subsidiary

such

electronics)

an

in the rapidly growing

monwealth Edison and the Nuclear

types

England

clear energy

industries to increase the standard of

America's

is conducting

and research program

Corporation is today helping

a
$45
million
nuclear
plant in Illinois for Com¬

proval,
power

The parent company

number of important areas of opera¬

estimated

are

$200-$270 per

some

company

of reactors. In
of utilities
formed the "Yankee Atomic Elec¬
for

New

a

Penn-Texas

tions,

future.)

corporations operates and builds for the

operating costs.

and

Construction
at

continue.

Meanwhile,

Through

Others

with

of

(So that the American public may learn how one of the na¬

the

will, it is reported, reduce

capital

mills,

limits

1955.

of an informative series

tion's large

"dual-cycle" boiling water reactor
both

1

No.

which

proposals would qualify for Fed¬
eral
cooperation and assistance
the

13,

L

operate in

Companies submitting acceptable

"within

day, Aug.

Company.

companies develop and produce natural resources,

kw, and the plant is expected

quested
t.

electric

per

1955, Admiral Strauss,

Genoa

Investment

wnich could

nuclear plant

a

Cost works out at about $250

Early in

Bear Farm,
City, Wisconsin, on Satur¬

guests .at Honey

Broadway, under the name of Top

MBM-IEWS MAN

produce

will

Chairman of the Commission, re¬

GPU

a

up

kw.

-

.

by

have a
members

for

large research staff and about this
time
estimated
that they could

ties.

'

served

and

Investment

will

luncheon

summer

business from offices at 610 South

as

—

kw.
leading

by utility companies or communi,

the cost of
high as in

Yager is conducting a securities

per

electricity for less tnan
10 mills per kw as compared with
inghouse Electric. The utility com¬
pany
agreed to
contribute the an estimated 11-20 mills (includ¬
land and pay $5 million of the ing capital cost) for the Duquesne
power plant.
While the 10-mill
cost of the reactor, or at the rate
cost was well above
the 6-mill
of perhaps roughly $100 per kilo¬
watt. However, this cost was not operating cost for many of the big
to

C.

CHICAGO, 111.
Women of Chicago

a

Indian

at

reactor

Hudson

areas

To Hold Luncheon

ANGELES, Calif.—Thomas

plans

with

plant

S.

LOS

just prior to

for a $55
pressurized
thorium-uranium convertor

announced

twice

Chicago Inv. Women

announcement,

Commission's

the

where

about

U.

plans to build
plant in
the

subsidiaries.

perhaps by the political
issue over public vs. private hydro
power, the utility companies have

had

is

it

power

Philippines,

By OWEN ELY

Warned

that

announced

Top Inv. Co.

(Special to The Financial Chronicle)

General Public Utilities has just

Utility Securities

25

(689)

Chronicle

The Commercial and Financial

..

.

INDUSTRIAL

BROWNHOIST CORP.

Heavy Material*.Ha lulling Equipment

THE CRESCENT

COMPANY, INC.

Wire und

Cable

AFFILIATES AND

DIVISIONS:
P.-T.

RAYWAY TERMINAL CORP.

*

Industrial Serviee

PENN-URAMUM CORF

Truck-Moufiled Power Shovrln

NILES-BEMENT-POND COMPANY
Machine Tool. and

Aircraft Component*

TEX-PENN OIL AM) CAS
PENNCO

CORP.

OIL CORP..

COKE

Iliturainuus Coal Minims

.,

Uranium Mining;

SAXON

*4QUICK-WAY" TRUCK SHOVEL CO.

CORPORATION

Oil .11.1 11m Producers

PENNSYLVANIA COAL AND

STEAMSHIP COMPANY, INC.

SEABORNE STEAMSHIP CORP.
SEASPLENDOR STEAMSHIP

CORP.

28

The Commercial and Financial Chronicle

v/

(690) ]

Thursday,

..

.

August 18, 1955

should spend at least 60% of your

time

sales

discussing and empha¬

sizing the prospect's needs and the

Securities Salesman's Corner

benefits
after

common sense

regarding the

of

use

to

What I wish to discuss this week

Fund

consideration

not meet with the approval

may

customer

salesman should completely and

a

he takes

them

wishes to

this statement.

I

vestor

know all

wants to

tails about the
exact

mined, who
figured

to

certainly
vided.

of

Once

come

across

only

looks

decimal

that
in

they

under

the

hood

buy

you

estate

you pay

it again.

mission

when

that

state that most peo¬

limit of talk about how

ment

will

want

to

know
do

on

If

you

keep

down

to

your

about

the average investor

from

he

now

will

have

or

wasting

money

The

that

sale

not

hinges
on

of

8%

3%, 4%,
of

or

sale.

a

acquisition

an

more

income,

inflation

protection,
or

All

sale

you

prospectus.
door
ment

open

a

because he

quisition

cost

'.but do

so

saw

it.

without

and

—instead

he

be

better

sale

depends

off

finan¬

the

upon

your

jprospect has in
firm, or in the or¬

.your

that

stands

prospect first.
do

can

it

of

behind

a

es¬

Sometimes

through

friend,

a

a

recom¬

or

in

It depends upon

shift

up

which

has

ability,

your

don't

overtalk

Offer

a

about

its

have,

this

of

the

least

$2,000

based

past

this

in

obtain at

before

year

a

upon

reasonable

a

in

greatest

organizations

country and you should

of

taxes,

experience

and

appraisal of the fu¬

in

And

go

noint,

will

this.

there.

from

on

each

erate

show
if

lose

(Once

terms

much do
voted

of

what

the

doesn't
con¬

be better

how

BENEFITS,

discussing

unimportant

loan

seasonal

The

started.

ex¬

customary

of

investment?)

an

of

sum¬

the

from

crops

farms

and

to

the

less

Aug.

.3%

Chase

4

to

31/4%

Manhattan

increase from

an

in the

for loan,

rate

accommodation for the best
—the

rate."

"prime

ber of the

those in

a

a

In the

move.

bank officials the

opinion
move

to

have

would

do

the

been

its

terms

At

refunding
as

be.

June

30,

the

date the 13

at

the

time

a

was

trying to

as

favorable

at

could

if

case

advanced

been

the Treasury

1955,

quarter-

leading New York City

technicalities.

had

centage

things

wants

to

one

no

buy.
You are selling
not
legal and technical

benefits

details

pertaining to the produc¬
and selling expenses involved

tion
in

the

distribution

Funds.
to

That

those

who

is

of

Mutual

interest

of

only

who make them and you

sell

them.

The

people why

buy them want to know the good
things an investment WILL DO
FOR THEM.

With Columbia Sees.

*

(Special to The Financial Chronicle)

DENVER, Colo.
now

Sam Badis is

—

connected with Columbia Se¬

curities

Company,
Equitable Building.

Incorporated,

point

replaced,
the

it

will

mature

rate

rate
bor¬

and

are

that

the

benefit

the

on

large

a

portfolios.

of

discount

This

2%.

A year

Bank Stocks
The latest edition of

at this time loans in the New

funds

available

which

in

demand
ment

Inc.,

Skyline Securi¬
1719 Walton Street.

The

wssjoivon

Drexel

turn

for

booklet "Data

on

Selected Commercial

holding companies, together with

a

major banks and 3
statistical comparison.

Investors interested in this class of securities will find it
helpful

appraising bank stocks

as

&

of

the

change
ward

New

York

mem¬

Stock

Ex¬

Sept. 1 will admit Ed¬

on

Starr 3rd

to

partnership.

1

New Parrish Partner

Booklet C-100

Edward
mitted
&

to

V.

Jaeger

will

partnership

be

ad¬

in Parrish

Co., 40 Wall Street, New York

City, members of the New York
Stock

The

Jaeger

FIRST BOSTON

Boston

Philadelphia

Underwriter




•

Cleveland

San Francisco

LONG
H.

♦

on

Sept.

Mr.

1.

associated

with

economist.

Opens

(Special to The Financial Chronicle)

Chicago

Distributor

as

been

E. H. Lock wood

New York 5, N.Y.

Pittsburgh

•

has

the firm

CORPORATION
100 Broadway

Exchange,

BEACH,

Lockwood

Dealer

II

Calif.
is

—

Ernest-

conducting^ a

securities business from offices at
4252

Atlantic

Avenue.

rate

banks

these

to

charged by

on

loans

t leir

In other words,

existing

Reserve bank

member

rates,

and lend to

prime-

borrowers at 3*4%.

increase

the

in

But the

discount

rate

this

operation less attrac¬
tive for the bank borrower, and,
as has been indicated, is
used as
restraint

a

rather

than

for

any

other purpose.

the

Historically,
best-name

All

and it

the

3V4

the

for

rate

is

borrowers

through

around

not high.

1929's

it

ruled

5%, touching 7% in 1920;
only the depression of

was

1930's

down,

that

brought the rate
contraction at

business

as

brought few borrowers

into the loan marekt.
Two possibilities exist for a re¬
if

business

general

down
be

the

demand

trend.

First,
let¬

stages

a

will

for funds

reduced.

Secondly, the Fed¬
Reserve may lower reserve
requirements against the bank's
deposit liabilitiy, and it may also

eral

go

into the bond
with

banks'

loanable

on

that

able

funds.

extent

as

The

But,

as

at

of

these

be used

two

to such

to interfere with the

are

effect

supply

a

neither

brakes that

buy

to

policy of mild
business, it is prob¬
is

possibilities will
an

thus

to increase the

which

present there
restraint

marekt

and

governments,
funds

now

being applied.

the

on

banks

is

to

enable them to show better earn¬

ings.
has

Ad why not?
been

This industry

be

the;

felt

in

the

bond

rate

in

9 week went to 1.889%,

in

a

BOSTON,

develop¬

bill

90-day

it

number of

prime rate is

new

has

though the
some

in

been
same

22

Bradley,
Thomas

rate

was

squeeze.

—

Halstead

M.

have

joined the staff of B. C. Mor¬

Co., 131 State Street.

al¬

F1F Adds to Staff

in effect

1954,

(Special to The Financial Chronicle)

reduced to 3%. Wnat
a two-way
funds are in

Loanable

short supply,

Mass.

Kenneth E.
Chase,
R.
McKenna, Roger R.

Marceau and Charles M. Roberson

high

as

years,

time prior to March,
was

a

(Special to Thl Financial Chronicle)

the

curtail

The

DENVER,

really is taking place is
Drexel

Co.,-1500 Walnut Street,

bers

investments.

Please wite for

—

the

investments

would

for stocks.

will

when it

Admit

to

PHILADELPHIA, Pa.
our

as

for

Bank Stocks" contains informatiomon 34
bank

in

ties

with

now

in

whipping-boy and a
too long, and has
York
Central
Reserve
district stepchild far
not
been
able, because of the
were
less by approximately $1,717,000,000;
and
boom
business long period of artificially easy
conditions have resulted in week¬ money, to participate as it should
in the boom economy. For a strong
ly
increased recently at almost
banking system an adequate rate
every reporting day.
of earnings on capital funds is an
A reflection of the trend was
essential, and the banks are only
the decline in stock prices on Aug.
beginning to get into that position.
5, the reasoning here, Tight or
wrong, being that with a tighter
money supply there would be less
Join Morton Staff

DENVER, Colo.-—Carl G. John¬
is

is

1%%

banks may borrow at 2% from the

ton &
son

to

bor¬

on

move

from

rate

the Reserve

part

And loan

totals have been growing.
ago

the highest figure
months.

(Special to The Financial Chronicle)

prime

obvious

is

of their loan

market;

With Skyline Sees.

the

books

lesser-name

derive

higher

their

on

in

to

loans

as

the Aug.

You

loans

extend

mechanical

that

recent

versal of the present

banks

these

restraint

the

was

want to give the appearance Of
interfering with the heavy july
financing
by
the
Treasury
as

when

by

T

that period

But

sell

the

amounted

higher prime rate should have
been
initiated
earlier; but it is
probable that the banks did not

rate had

1954

Reserve districts to increase

some

lead
num¬

other large banks, and
number of other cities

joined the
some

names

Their

quickly followed by

was

formation.

don't

rowing

makes

On

of

by the money authori¬

move

ties to put some

ter needs of the economy.

rowers

don't

A

name

will

mislead,

1955 the expansion
$391,000,000.

the building up of inventories by
retail trade for the fall and win¬

Bank announced

half

$953,000,000, in the like period of

at

late

very

preparatory to the movement

oversell,
don't fail to disclose necessary in®

personality,

requirements.

The

phases

one

good Fund that meets the

those

mechanical

the

better!

your

this confidence

the

as
acquisition cost,
figured, management

first

increasing trend in
mer,

think should be de¬

you

to

at

as

have

you

fu¬

Enum¬

he

him that he will

in

off

the

instead of around $800

ture

do

for

the

that

the

loans in this district contracted

to member banks.

of

reinvest

appearance

September, more-or-less at the

pansion

a

income to

loans

rising

Whereas in

pattern is for loans to start their

Sam

of

and

rates

likely to make its

time

ture which lies ahead. When Uncle

gets through with his tax bite
you should still have about $1,600

better

was

pro¬

invested

assets

hundred

a

business

prospect's requirements, then talk

underemphasis

income

year

into

assets

your

over

belief in your product to do
job for which it is intended.

When you have

you

a

fessionally managed Mutual Fund

your

the

of $1,000

advantages

before taxes which you now

Don't

sales

these

obtain

leading
New York City banks was on the
increase, and that the incidence
the

among

and

interview.

ac¬

Bring it

then

harden, but also that

volume

fees,

mendation

disagree¬

that the

8%

was

mentioned

never

future

part of your

loan

the important things
interest
your
customer.

to

continually la¬

any

saving
present income. Why
are

you

me

to

were soon

banks

made unless that confidence is
tablished first.
I

you

15 years from
want more income
today, that is why

have told

not

Ten

now,

now, you will
than you have
you

so?

only that interest rates generally

totaling $13,061,237,000. As the in¬
crease of one-quarter of one per¬

it

bor that point in this column but
it is
basic.
Get
the confidence

covered

from

years

that

not

is

can

of your

isn't

discussion

a

prospect

such

paying the

Mention

Mutual Fund, or a combination of
these
factors.
No
sale
can
be

con¬

it

know the

you

was

of the

it

ganization

more

Don't leave the front

to

the in¬

best

at

grow,

and

same,

Your

there

space

how

back

buying 'you, in

up by the customer
satisfaction, give him a

his

that

taxes.

June

this

matters

cost.

confidence

points brought
to

prove

Gov¬

in

and

Every

in the pros¬

have

trying to

in in¬

year

Federal

in

years,

many

vinced

charge is only
4% charge for the round trip.
Don't go off on a
long disserta¬

Don't Labor the Technicalities

After you have made the

and

with

a

you

purchasing power of these dollars
has been steadily decreasing for

to show that the 8%

an

buying

more

are

through

cially!

combination of
That is what you

the details

are

In

Prospect,

the

cannot

money

stays the

of

taking several hundred

away

prospect

How

Deliver the Prospectus

pectus.

you pay your

the expenses connected

which

should sell.
*

aware

dollars

This Week—Bank Stocks

years.

Mr.

which

on

the acquisition cost of a
Fund—and it is the correct way

get

any

things.

am

vestor should not mind

wrong

growth,

venience,
of these

isn't

cost—he's
more

When

cost you

acquisition

a

2%?

pay

is the

He

I

come

ernment is

present."

Mutual Fund

a

a com¬

whether

on

investor should

an

acquisition cost
kind

at

away

which

of

the buyer.

tion

better chance of obtaining a larger
retirement income than if he left
his

You pay
buy a

you

here,

possibility

a

the

receiving $1,000

are

disposal of the Fund
should you desire to do so.
This
is a pleasant and dignified way to

a

the acquisition cost of
if he knows and

Fund

believes that if he puts his money
to work in a good fund than 10
years

commission

cover/

mini¬

a

5%

the ultimate

invest¬

them.

usually

day they may be sold.
Mutual Fund is the only in¬

with

i

Mutual

a

their

sales,

talk

What does
care

for

make

technical
mum.

what

you

some

acquisition

securities, mutual funds, or
policy on a home.
They

to

When

that does not impose a selling cost

This holds for life insur¬

want

as an

is.

stock;
you pay another when you sell it.
All investments when bought must
be appraised from the standpoint

title

a

it

pur¬

of the

expense

estate

but

thing is put together when they

ance,

real

salesman's

vestment

buy it.

both the

ac¬

when you sell that real estate

I think I

a

the

point this out

and

Intelligently

can

covers

I

Mutual

that

them

not

The

a

acceptable

price that includes the real

pay a

After a good many years of ex¬
perience in the sale of intangibles

ple want

tell

investment.

who also wishes to take apart the
carburetor—let him do it.
Sell

to

advantage—which

while you will

a

place.

considering

prospects

quisition cost

pro¬

investor who

an

first

chasing and sales

places,

are

the

have found it very

Funds

management fee

four

see

to

agree, if an in¬
the de¬

the attorneys, the

are

amount

in

I

acquisition cost, its
how it is deter¬

amount,

exact

der

know

Don't misunderstand

not.

or

advantage

over

the order—whether

his client

not

or

going to bring your
decided

a

minor
If the in¬
a

his presently available cash
funds, savings accounts, or other
securities, then don't take his or¬

fully disclose every available fact
pertaining to Mutual Funds, be¬
fore

anyway.

vestment isn't

of some of those who believe that

is

It

has

over

By ARTHUR B. WALLACE■

accounts and
paying Mutual

better

that

"Over

overemphasis.

or

Bank and Insurance Stocks

when,

for

savings

a

growing

the Mutual Fund prospectus

have

suitable re¬
he changes his low income

producing
cash

Some

will

he

allowing

serves,

By JOHN DUTTON

that

with

Federal Reserve

reserves

at the

Colo.

—

William

E.

Day,

Daniel

V.

and

Koontz

def¬
figure, while the demands of
industry and trade for loan ac¬

the staff of FIF Management

commodation

poration, 444 Sherman Street.

running to

a

icit

are

on

the increase,

E.

Barrett, Norman D. Beard, Robert

William W.

Milam, Jr. have joined
Cor¬

Volume 182

Number 5456

The Commercial and Financial

..

.

if lack of

Continued from first page

See
We

of

some

them,

have been

well

as

to

volume
is

with

owners

an

by these banks to finance companies which in turn
consumers.

loans is

but

loaned

m

compiled
could

give

among

An

ail cbf

the

second hand

car

(Aug.

be made to remain out of view in any
figures ordinarily published. With the
market in the state it now is, it is often—

can

perhaps we should say usually—all but impossible to tell
precisely what down payment is actually made on a new
car
purchased. The so-called balloon note is only one of
the techniques employed to disguise the reabterm the loan
is tc run. In the real estate field, the mostjcommon abuse
in times

past, and

no

doubt present

now.

is the-over liberal

appraisal for lending purposes, but there are others which
do not show in the published statistics.

underwriting

group

No More

In

recent

$200,000,000

17)

This

offering

scribed and the

Regulations!

General

the

tion

providing for more public regulation. At best such
really have no place in our free enter¬
prise system in any event—would prove something less
than fully effective in such a situation as that which now
exists. We hope that the authorities will stick to their
resolution not to indulge in such authoritarian procedures.

debentures will provide

In

;

the present situation it is understood
in Washington is felt about the part

of

the

additional

seems

increased

the need

resulting

in

increases in notes and

substantial

bills

materially

for GMAC fi¬

facilities,

nancing

receivable

Additional

be effec¬

Corp.

and

borrowings.

borrowings

are

this

re¬

products, and the current
public offering

year,

tures

Corp.;

Co.,

3%%

increased
Dec.

Aug.

prices
through
principal

at

and after Sept. 1, 1970.

on

GMAC finances the distribution
of

products manufactured by
General Motors Corp. to dealers
for resale and finances such deal¬
new

ers' retail instalment sales of new
General Motors

products and used

units of any make.

Financing re¬

lated to automotive vehicles com>

of the dollar volume
purchased in 1954
in the first six months

prised 96%

receivables

of

and

97%

as

of
at

as

of 1955.

the

period

five-year

increased from

$100,974,000 to $209,671,000 in the

first

six

to

000

1950-1954

months

interest

of

and

rose

and

for

$114,944,000

$143,561,000

year

SAN FRANCISCO,

and

discount

from $64,839,000

the

during

five-

period and totaled $76,282,-

for the first half of this year.

Capitalization
at July 31,

due

the

company

1955, including the new

debentures, is
edness

of

as

follows: Indebt¬

within

one

year,

$1,-

debt
one year, $1,644,522,456; subordinated indebt¬
edness, $325,000,000; and capital
funds, $181,775,637 (at June 30,

108,514,628;
senior
due subsequent to

funded

of

For the past
an

Western

Bank

members

of

the

include:

group

under¬

Dillon,

Co., Inc.; The First Boston

Kuhn, Loeb &

Co.; Blyth

-

The South

was

..motor

to

fair. Nor

confine attention

able to

are we

ness

is

to

two

fields—consumer

and

liberal credit

over

policy

as

consumers

not

or

to

we

It

has

often

said

with

that

John Finn

these

the stock market. About the
areas

Policies of

of

consumer

arbitrarily

credit

easy money

same

and

can

should, of

-

help

you to

is

credit.
by

course, go

are
still other aspects of this situation.
undoubtedly arisen in the matter of the rela¬
tion between a loan and the security behind it in the form
of an automobile or a home, and in the length of time
loans are to run. One is often obliged to wonder, however,

there

Abuses have




LOUISVILLE

&

NASHVILLE

Finn

Securities.

SOUTH

#

locate advantageously in the South, as we have
perienced industrial development department is prepared to recommend
needs without obligation and in strictest confidence.
us

the board.
But

E.

service.

be said of

mortgage

Colo.—John

materials, abundant power,
cooperative labor, plus superior transportation

impossible to make funds cheap and abundant to every¬
body but the stock speculator and expect to keep funds
out of

Opens

js engaging in a securities busi¬
ness from
offices at 1726 Arapa¬
hoe Street under the firm name of

and

it

Highway

today offers the ideal combination of access to raw

expanding consumer markets, ample supply of

San
the

Franklin

J. E. Finn

be loaned to

truth

of

(Special to The Financial Chronicle)

should have learned from the old
been

director

San Francisco.

loans-"made for the account of others" in the late

'Twenties.

a

Hospital, the
Redwood Empire and the North
Central Improvement Club, all of
District,

companies lending to consumers. Let us

forget the lessons

street

of

Corporation

Golden Gate Bridge and

respects other elements inlhe
may

Waterloo, Wisconsin,
at the Uni¬

studied

and

Francisco

mortgage credit—leaving all others to borrow at will. An

^community easily creates funds which

time

community affairs. He
of the board of the

Electrical

neither

credit

of that

Chairman

that it is sensible

see

Com¬

Trust

versity of California and has long
been active in San Francisco busi¬

field.'Mere, restriction of the banks in this field,

nor

and

Francisco, and its
the San Francisco

Assistant to the President,

Davies

leaving sales finance companies and others free to borrow
effective

San

A native of

Mr.

good deal further

from'the banks and lend to consumers, would be

Mr. Davies

the late Parker S. Maddux.

than is now suggested in dispatches from Washington.
/Take the field' of: consumer credit, particularly in the

x

years

predecessor,
Bank.
During most
he

E.

executive of the First

has been

of

21

of

investment

Co.,

Inc.,
management firm.

TAKE THE INDUSTRIAL ROUTE

*

&

Axe

office

Francisco

San

DENVER,

writing

Corp.;

the

W.

1955).
Other

charge

pointed Vice-President in

the

Income

1955.

Calif.—Phil¬

lips S. Davies, West Coast banker
and
civic leader, has been
ap¬

pany,

GMAC consolidated total annual

operating income

Read &

During

$3,143,232,-

of June 30, 1955.

income taxes

101%%
to the

volume

$985,383,106

the end of 1954 and to
218

E. W. Axe & Go.

com¬

to $2,521,881,787

20-year debentures are

1956,

31,

amount

from

1949

31,

period

redemption

P. S. Davies V.-P. of

$4,957,599,827.
bills receivable held by

to

from

the

1955

amounted

to

ranging

the

Co.;

White,

of

(after deducting un¬
earned income and loss reserves)

before

subject

volume

totaled

five-year

March.
new

of

months

$250,000,000 in deben¬
been sold early in

having

The

annual

&

Securities Corp.;

$6,923,427,310 and for the first

acquired

quired to keep pace with the con¬

;

to us, however, that the program to

to

the company

Let

It

&

Kidder,

Inc.;

Stone & Webster
Union Securities
Weld & Co.; Lee
Higginson Corp.; F. S. Moseley &
Co.; Paine, Webber, Jackson &
Curtis; Dean Witter & Co.; Clark,
Dodge & Co.; Dominick & Dominick; Equitable Securities Corp.;
Hallgarten
&
Co.;
Hemphill,
Noyes
&
Co.;
Hornblower
&
Weeks; W. E. Hutton & Co.; R. W.
Pressprich & Co.; L. F. Rothschild
&
Co.; Spencer Trask
&
Co.;
Tucker, Anthony & Co.; Wertheim
& Co.; and Wood, Struthers & Co.

Barney

increased from $4,093,393,981

eral Motors dealers has

.

:

pany

Notes and

often, not to say ordinarily, actually created, thus
adding to the sum total of so-called purchasing power or
money supply. These specially created deposits represent
high powered funds and can be really troublesome in the
course of time. It is in this area perhaps that the authori¬
ties cculd, if they would, be most effective in placing a
cautionary hand upon the over-expansion of credit.
v:

tive ard to be fair all round should go a

the

1950-1954

in the volume of business of Gen¬

are

Broader Action Necessary

Acceptance

six

that chief

that com¬
mercial banks are playing in all this. It is understand¬
able enough why this should be the case. When a finance
company, a savings bank or some other lender takes what
is saved by one individual and lends it to some other in¬
dividual the net of it is simply that the spending of a cer¬
tain sum of money is transferred from one holder to
another; when a commercial bank lends to a consumer,
a home owner or a finance
company which is to finance
a consumer or a home owner, the funds for the purpose
concern

Motors

working capital for GMAC for the
purchase of receivables. The rise

measures—which

-

Stanley

Morgan

receivables acquired by

closed.
sale

issue is the second

the tendency in such situations,
contemplated, has been to enact legisla¬

by

Co.,

&

Co.; Lehman Brothers;
Merrill,
Lynch, Pierce, Fenner & Beane;
Salomon Bros. & Hutzler; Smith,

real

the

of

one

Ripley

Peabody & Co.; Lazard Freres &

by Morgan Stanley Group.

oversub¬

was

books

from

Proceeds

Motors

years

was

that

us

headed

tinuing strong demand for General

when action

to

Co.;

&

Sachs

Goldman,

Co.;

man

20-year debentures. Maturing Sept. 1, 1975, the debentures were
offered at 98V4% to yield 3%%.

literally dozens of ways in which loose
practices both in the motor car lending and the real estate
and

seems

Dillon & Co.; Glore, Forgan

Halsey, Stuart & Co., Inc.; Harri-

comprising 275 investment firms, offered for, public sale yesterday

are

mortgage fields

It

matters.

Debentures Offered

clear picture of this aspect of the situation.

a

There

&

good credit risk is above all ade¬

a

East¬

Co.;

Drexel &

Co., Inc.;

man,

$200,060,000 General Motors Acceptance

the matriculate carries other elements
more disturbing than the amount of money
this way. Unfortunately, none of the currently
and published statistics in these fields do or

knov/ledge
of danger

&

a more

too. What

But the increase in the volume of such

aspect of a situation which to common

one

other times,

some

dangers of the present situation is that so little attention
is paid to such matters once collateral is offered. We can
only hope that this rather commonplace aspect of the mat¬
ter is receiving due consideration when plans are laid for
guarding against excesses in this field of consumer and
mortgage credit.

abandon well calcu¬

give prudent people real uneasiness. The mere
of these loans as reported in the official statistics

enough to attract attention. This is particularly true of
this sort made by commercial banks and loans

lend to

this and

individual

an

financial

various types of consumer

on

loans of
made

sifting loan applications is not

quate steady, dependable, income in relation to all fixed
commitments, and, of course, a record of responsibility in

so-called fly-by-night lenders,

as

making loans

durables and to home
lated

in

care

serious, matter at
makes

As

27

(691)

Chronicle

RAILROAD

helped others. Our exsites to fit your specific

28

The Commercial and Financial Chronicle

(692)

Chairman

as

News About Banks
new branches

was

Chemical Corn Exchange Bank's

been

of Gity

tors

Bank

announced

it

York

Aug. 4.

on

special meeting to authorize an in¬
crease in
the bank's capital stock

Farmers Trust

New

of

Company

was

from

A graduate

and

Baker is a di¬
rector of The First National City

Mr.

Harvard,

of

York,

New

of

Bank

and Director of

Society,

ice

Trustee

The First National City Bank of
New

York

that
ant

announced

of
which $4,294,000 will be credited
to
capital and $706,000 will be

has

it

Cashiers.

Vice-Presidents

Dickey
both

then

and

assigned

Assistant
Daniel

are

Julien

and

L.

D.

million.

The

last

dividend

was

10%

Dec.

McCall,
Southern

the

to

Mr.

McCall

is

thl staff
of

Bank

The

former

a

the

City

of

Assistant

new

"Ellis E. Bradford

and A.

Division.

mestic
was

Mr. Danforth

was

Bradford

the

First

Na¬

bank

and

the

of

in the Domestic

if

Division.

Directors of the Chemical

Exchange

Bank

Corn

York

of New

of

Lester

Trust

Grieb

F.

stock

10%

dividend, subject

pany's

as

in

Domestic

an

the

Assistant

trust

Banking

com¬

Divis¬

shareholders ion.
Mr.
Grieb has had many
meeting on Sept. 7 years* experience in the banking
and further subject to approval
field and prior to joining Irving,
by the State Superintendent of he was Executive Vice-President
Banks.
N. Baxter Jackson, Chair¬
of the Reading Trust Company in
man, announced that the distribu¬
Reading, Pa.
He is a member of
tion, if confirmed by shareholders, the New York Bar. \
will be mailed on Sept. 30, 1955 at
a

•the

special

rate

shares

the

in

of

one

held

of

share

on

record

each

Sept.

1955.' Where fractional shares

he

1902

In

Bronx.

tal

was

10
•

Fred

Berry, President of North
Savings Bank, at 185 West

Side

are

activities. After 26 years with Irv¬

resigned

ing Trust, Mr. Berry
Vice-President
1926

Bronx

in

banker in the Bronx

dividend,

was

from

subsequent dividends.

Chairman

two

Side

as

He

civic worker.

a

was

He

President of the Bronx Board

of Trade from 1933 to 1938, served

•

Albert

the

merger

of

Bank

of

National

Assistant

Davey,

the

Williston

The

National Bank

June

on

Y.

office

Park

announced

opening

30,

are

been

has

Keen

Trust

and

Bank

Tradesmens

ap¬

Vice-President

Assistant

pointed
of

*

*

if

Allen

Company of Philadelphia, and will

charge of the Estate Plan¬
ning Division of the Trust Depart¬
ment, it was announced on Aug. 15
by James M/ Large, President.

assume

*

it

The First National Bank of Mid-

dleton, Ohio has increased its cap¬
from

$1,000,000

to

$1,100,000,

ing resulted fro;m the
$100,000 of new stock.
it

it

The election
as

sale

of

%

of Alan M.

Cooper

President of the Norwood-Hyde

Park

Bank

Trust

&

Company

Cincinnati, occurred at
the

of

bank

Cincinnati

the

to

of

meeting

a

Aug. 4, according

on

"Enquirer,"

within

nent

will

merger,-

the

approximately $39,500,000, and

are

total

resources

000,000.

than

more

Reference

posed

ates

$500,-

the

to

buildings are completed. At
present time the bank oper¬

extremely important that all Bonds be registered by this
date. Further information
may

be obtained from the Vali¬

of

the

National

Bank

established

of

in

York

New

1924

and

was

operated

•

offices in the borough of
Queens. These offices Will now be

operated

two

Nassau

Midland

rine

New

York

New

number

of

to

Mr.

Trust

Company
its total

bringing
York

offices

the

of

11

Ma¬

144.

Textor

stated

Edward

that

H. Dawson and Raymond F. Riley,
both
former
Vice-Presidents
of
National

elected

trust

have

Bank

Vice-Presidents

of

,
Mr. Dawson
of the bank's
offices in Queens assisted by Mr.

company.

in

be

charge

addition,

In

election

the

announced of Richard F.

La-

The

as

Assistant Treasurers of

Marine

Midland

Trust

of New York.

pany

officers

hult,

of

Bank.

The

are

for¬

Jamaica

Na¬

Edward

presently

Pomonok

All

in

Office

that capacity.

F.

charge

will

Litch-

of

continue

the
in

No changes in per¬

sonnel

are
contemplated,
ing to Mr. Textor.
*

dation Board for German Dollar Bonds, in New York.

Com¬

*

accord¬

consolidated

be

these

of

says,

into

the

larger office now known as the
County Seat Office. At the same

of
in

Com-

to. 10.

Operation

offices, President Roth

can

branches of The Ma¬

as

Mineola).

the

time
;

moved

Mineola

to

location

a

miles away

Office

will

about

second

will

be

in an area
known
as
Plainedge, midway between the
bank's
present
Levittown
and
Farmingdale offices.
The third
branch

new

known

as

will

Old

of

Wantagh

area

Country Road

State

Parkway.

$

*

As of

the

New Cassel close to the

intersection
and

in

be

*

July 28 the First National

Bank of Glen Head, Nassau Coun¬

ty, N. Y. increased its capital from

$230,000

to

dividend

of $4,600.

$234,600

of

double

NOTICE

detached from bonds sub¬

the

capital

$250,000,

now

*

*

as

of

hereby requested to report

holdings to the Validation Board

prior to December 31, 1955.

.

dividend

Company of Oyster
Bay, N. Y. with the Meadow Brook

to

National

Company

the

the bank's capital up to
$200,000 (from $150,000) effective

Presidents of the three insti¬
The joint

announcement

stated

that the consolidation took

effect

as

of

the

close of

business

Aug. 17, following approval by

the stockholders of the respective
institutions and by the Comptrol¬

30 Broad Street

New York 4,

N. Y.

Douglas W. Hartman

Dr. Walther Reusch

United States Member

German Member

August 26, 1955.

i

t

:

c#

»

til

fiM

$50,000 (by a
that amount)

stock
made

tutions.

Haven

of

the capital
National

the Forest Park National Bank

of

Forest Park, 111. has been brought
about by a stock

dividend of $60,$40,000 of new
stock, the capital thereby having
become $200,000 as of July 19, as
compared
with
$100,000
previ¬
ously.
>
V
000 and the sale of

....

.

'

*

»■

.

*

*

Under

the

charter

title

and

the First National Bank

of

South

of

Carolina, of Columbia, S. C. (with
stock
of $700,000)
the

common

Carolina National Bank of Ander¬
son, S. C.

(common stock of $300,000) has been consolidated as of
July 21 with the First National of
South

Carolina.

At

the

effective

date of the

consolidation, the con¬
solidated bank had a capital stock
of $1,100,000, in 110,000 shares of
common
stock
(par
$10 each)
surplus of $1,100,000 and undi¬
vided
profits of not less than
$220,000.
*

*

K-.

The American National Bank
a

of

cap¬

of

$350,000, as of Aug. 1, in¬
from $300,000 by the s.ale
$50,000 of new stock.

creased

of

*

*

*

of

Beach

&

Haven,

Trust

N.

J.

brings

July 19,
*

*

s

Charles J. McCloskey, President
and

founder

of

$1,000,000,
sale
the

resulting from the
of new stock, was added to
capital of the Texas National

of Houston, Texas, on July
25, bringing the capital up to $6,000,000 as of that date, from $5,000,000.

of the Beach

Bank

the

Branchville

it

it

Bank

of

Culver

it

Both by the issuance of $1,600,000 of new stock and by a stock
dividend of $1,600,000 the First

National

Bank

of

Phoenix,

Ariz.,

has

Arizona,

at

enlarged its
capital from $4,800,000 to $8,000,000, the increased capital having
become effective Aug.
it

National

it

2.

it

Lake,

N. J., died on Aug. 11. He was 86
According to years of age. He had been Pres¬
Augustus B. Weller, President of ident of the
bank, it is stated, since
Meadow Brook, Mead W. Stone,
its organization in 1933. The New¬
President of Central National who

ler of the Currency.

;

doubling of the capital of

Bank

*

of

Bank

on

VALIDATION BOARD FOR GERMAN DOLLAR BONDS

addition

An

National Bank of Mineola, Long
Island, N. Y. and the North Shore

Bank, of West Hemp¬
stead, L. I., N. Y. is announced by

^

The

its capital as a result of a

ously.

Trust

.»•*
it

it

stock dividend of $125,000, making

The consolidation of the Central

SPECIAL

Springfield, Ohio.

ital

Bank

Palmer, Mass. has been enabled to

July 20, in place of $125,000 previ¬

*

Wiegel, who has become President
Springfield' Savings Bank of

Jacksonville, Fla., reports

National

Palmer

The

post

of the

stock

a

#

#

#

by

his

in the
Norwood-Hyde
Park
Bank
&
Trust Mr. Cooper succeeds Don

two

Herricks Road.
branch

new

With

Co.

new

be

at the corner of Jer¬

icho Turnpike and

his

same

Office of the First National Bank

! of

Trust

to

-

the

appeared

merger

tional

February 29, 1956. It is

Office

Main

mer

in

York

New

election

block at Mineola, (the for¬

square

pro¬

branches

two

in our! County Trust Company) and the
July 7 issue, page 95. The Jamaica Mineola Office (the former Main

mer

has been extended to

offices

new

land Trust Company of New York
based on figures of June 30, 1955

i

period of registration for validation of the 92 issues

three

of

Co.,

15 the

Aug.

the next 60
days.
They
operate in temporary quar¬
ters, Mr. Roth said, until perma¬

H. Kalb

German Dollar Bonds

Nassau

on

$32,570,000.. As a
combined
capital funds of The Marine Mid¬
the

of

Trenta, Roswell T. Auger and Carl




Newark, N. J.

new

E.

Square,

N.

1955 amounted to

result

Riley.

their coupon

placed
busi¬

was

having been absorbed by the
Fidelity Union Trust Company of
ness

named

Brook

Smith, Vice-President;
Peter Johner, Jr., Assistant VicePresident and Francis I. Sawyer,
Jr., Assistant Cashier.
At Oyster

by Marine Midland Corpora¬
Total resources of The Ja¬

maica

was

To Holders of

are

stock of $300,000,

voluntary liquidation, its

in

ier.

at

*

of

Jamaica

will

ject to validation

ital

ital

Walter

*

Completion
The

the

NOTICE OF EXTENSION OF REGISTRATION PERIOD

Holders of coupons

Irvington, N. J., with common cap¬

effective July 20, the addition hav¬

West Hempstead office.

of North

Trustee

a

Cashier; and Wil¬
Assistant Cash¬

officers of Meadow

elected

was

Savings Bank.

been

involved

the

tive staff of Meadow Brook at the

Board

the

of

later

years

The Jamaica

The

office
of

*

*

22, the Peoples Na¬
tional Bank & Trust Company of

liam J. Kuhn, Jr.,

opened

benefit

Mineola
officers

Cashier, will join the administra¬

County Trust Company. He
post until 1944 when he

the

became

Assistant

ner,

as

October,

President of the

elected

was

held

and

State

A

also active

will

will

Vice-

"Dean of Bronx Bankers."

City, died

on

titlled to the Oct. 1 quarterly cash

but

who

"

«:

As of July

President; Harold K. East, Assist¬
ant Vice-President; Harry J. Dieb-

of Bronx

The

en-

the

f

two

Bank:

rine Midland Banks in New York

be

following

'

it

Trust Company in charge

three

15,

dividend

indicated,

the

Assistant

his adult life, Mr. Berry, who was
77 years of age, was known as the

is

from

National

Greater

it

officers at

Gunn,

pletion of the merger increases the

not,

new

Brook

all

will

announce¬

merged into that or¬
In
addition to Mr.

in

F.

mont.

stock

more

The

Meadow

closing bid price for its stock on
Sept. 26.
The new shares issued
of the

with

John

Aug. 7 in New Roehelle Hos¬
pital.
His home was in Larch-

result

Brook

named

231st Street, New York

a

bank

a

Committee¬

;

man.

26-

a

somewhat

named

that

were

many
mergers
he was
Vice-President
of
Irving

made

also

continue

Manager of the Bronx Office. Fol¬

lowing

ment

ganization.
Stone, the

Company and in November,
was
appointed
Assistant

1911

$24,000,000

banks

a

of

resources

involved,
instead
of
receiving
scrip, shareholders will receive the
equivalent in cash, based on the

as

County

than

Meadow

bookkeeper for the Knickerbocker
Trust

ap¬

Company of New
announces
the election of

York

on

to ratification by the
at

senger

it

it

Aug. 11 approved the declaration Vice-President
a

as

*

Irving

of

and

tion.
if.

a

now

as

years

Township

Frankfort

Bay in addition to Mr. Snouder, which reported that Mr. Cooper
of advertis¬ New York of
Jamaica, L. I., N. Y.,
ing, public relations and promo¬ with The Marine Midland Trust Clifford W. Carll was named Vice- would retire on Aug. 15 as a VicePresident and LeRoy C. Smith As¬ President
tion.
Prior to joining the Guar¬
of
the. Central Trust
Company of New York was an¬
sistant Vice-President.
anty Trust Company, Mr. Bratton nounced on
Company of Cincinnati with which
Aug. 15 by George C.
*
*
served as Advertising and Public
he had been identified in an of¬
Textor, President of the trust com¬
Relations Manager of the GenMr. Arthur T. Roth, President ficial capacity for the past nine
pany.
This merger follows ac¬
e r a 1
Dynamics
Corporation's
quisition of The Jamaica National of the Franklin National Bank, of years. Earlier, it is stated, he was
Electro Dynamic Division.
associated for 13 years with the
Bank
Franklin

Edwards

Mr.

in

formerly

With the consolida¬

Nassau

served f 20

had

and

charge

in

partment,

are

Danforth, both assigned to the
Metropolitan District of the Do¬

tional'Division

the

announces

likewise

was

was

President and

Company

pointment of Meredith J. Bratton
as
Manager of the Publicity De¬

York.

New

Cashiers

on

*

Trust

York

New

member

distributed

*

Oyster Bay.
office

com¬

Mineola, Williston and

tions Meadow Brook is

brought here in 1882
a youth worked as a mes¬
for the Washington Bank

land, he

and

Guaranty

First National

of The

previous stock

9, 1953.
*

District of the Domestic Division.
of

bank

surplus of $127,766,000. and
undivided profits in excess of.''$19.5

As¬

two

The

The

surplus.

to

will have capital of $47,234,-

000,

appointed two Assist¬

Vice-Presidents

sistant

"credited

Aug. 17

on

of

new
shares oi $10 par
Upon such authorizations,
directors plan to transfer $5,-

the

' *

*

$47,234,000,
issuance

000,000 from undivided profits,

George F. Baker Trust.
*

the

authorize

value.

the

of

to

$42,940,000
to

429,400

Treasurer

Community Serv¬

and

be asked at the

shareholders will

.appointed to the Board of Direc¬

munities of

Born in Hull, Eng¬

hattan Bank.

F. Baker, Jr. has

large commercial bank to the

member of the Bronx Chamber of total resources over $250,000,000.
North
Shore
Bank
Trust
Commerce, Institutional Securities The
Corporation, Real Estate Board Company of Oyster Bay had assets
of the Bronx, Savings Banks Asso¬ of approximately $7,000,000. The
National Bank
of
Min¬
ciation Group IV; also Advisory Central
Board Member of the Chase Man¬ eola joins Meadow Brook with to¬

capitalizations

George

of

Union
of the

Bronx

Chairman

He

etc.

years,

Bankers

and

officers, etc.

revised

Y.M.C.A.;

the

Greater New York Fund for three

consolidations
new

of

Board

the

of

Managers

Thursday, August 18, 1955

..

.

The

Bank

plans of the First Western
Trust Company of San

and

Francisco

to

enter

California's

north coast

city of Eureka became
known
on
Aug. 8 when T. P.
ark
now becomes a Vice-President of
"Evening News" states that Coats, Chairman of the bank's
Meadow
Brook, and Arthur H. Mr. McCloskey was Treasurer and Board of Directors, announced the
Snouder, President of the North a former director of the Selected filing of a formal application with
Shore Bank, also a new Vice-Pres¬
the State Superintendent of Banks
Risks Insurance Co. of Branch¬
ident of Meadow Brook, the mer-*
for permission to open an office
ville.
He was a member of the
there.
In addition to the State
gers were designed to bring the
added resources and facilities of a Sussex
County Planning Board Superintendent of Banks, First
•

I'?;.'

>

-»

v

r

Number 5456

Volume 182

Western's

subject

the

Federal

..

approval

is countries

the

of

Insurance" Cor¬

Deposit

poration. First Western has opened
five new offices to date this year

offices
communities throughout the

and it

in 44

has 59 banking

now

State.
$

■'?

Bank

Western

First

of

Company

and

Trust

in

Far

the

East

served

branches of the parent
Hongkong Bank," said Mr. Brad¬
ford.
Branches of the Hongkong
by

34

Vice-President,

are

York,
burg.

.

San Francisco an¬
Aug. 15 that it has

*

*

«

.Hagelstein, . President . of
Butte
Valley. State iBank.
Merging of
the bank with First Western is

Francisco

-subject to the approval of regu¬

joined Anglo in

appointed

been

has

Vice-President and Manager of the
Stockton

office.

Schwabacher Adds

Joins Arnold Staff

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

SAN

Calif.*

FRANCISCO,

Henry

F.

Casey has been

added

to the staff of Schwabacher &

100
of

BEVERLY HILLS

—

New York

cisco

Stock

and

San

Camden

North

Fran¬

Exchanges.

lin

&

Co.

.
.

Goodfriend

Mr.

Frederick

1928.

BURBANK,

-

Calif.

—

Fred

O.

Gregg is now with W. G. Nielsen

.

Joins Sutro Staff

/

Western, and it will be
managed by the per¬

employed by the bank
Hagel¬
stein would become a Vice-Presi¬
dent of First Western and would
devote himself to First Western's
affairs
in
the
Klamath
Basin.
sonnel

now

there.

Mr.

Coats said Mr.

SAN

Leo Schoenbrun Adds
(Special to The Financial Chronicle)

LOS

ANGELES, Calif.

Staton, Jr. is
Leo

now

Schoenbrun,

—

James

Murdock

L,

connected

with

1

Calif.

FRANCISCO,

has

Sutro

PORTLAND,

—

become

&

Oreg.

New

the office in Dorris
who has been
Butte Valley State Bank

affiliated with
1385 Westwood

Co-; 407

now

west

Company,

Francisco

Both

were

York

New

San

and

,& Marshall.

.

Wilcox Building.

previously with Foster
'

-

Both

and Assistant Man¬
be Howard R. Hansen.
Mr. Hansen and Mr. Fisher

will

become

since

1947,

Dorris

the

Vice-Presidents

A

place
will

will

ager

Cable Is Now Being Laid

telephone system

will be Fred Fisher,
with the

history-making
a

twin

The world's first transoceanic

being laid from this continent

improved service between

of Directors of The
San

The Board

Bank

this

California, N. A. of

of

country and Great Britain

Francisco, Calif, has voted to call
a

shareholders meeting to be

held

ness on

that date at $70 a share,
of

ratio

the

one

share

new

new

presently held.
yet acted
stated
shares will partici¬

The

.the

same

to

shares

of

the

These

issue

will

Present service

cable system is the culmination of

was

to

build amplifiers right

the bottom of the

ocean

enormous

and operate

deep-sea amplifiers have been designed

by Bell Telephone Laboratories and made to
standards of

Unsubscribed

new

trans¬

direction—people in this

without attention for years.

during
period from $142,826,000

$201,219,000.

completed—each

year.

of planning, invention and development.

major problem

pressure at

expanded

have

are

one

into the cable which could withstand the

$443,253,000 as of Aug. 4, 1955,
loans

next

talk with those in England under the

new

many years

therein.
Since the time of
the
previous stock offering in
July 1951, deposits, it is indicated,
have increased from $359,932,000
and

telephone cable is
Great Britain this

by radiotelephone.

:-.,-The.

in

pate

to

both cables

speech in only

for

the October dividend it is

that these

When
mits

is

While the Board has not
on

to

Atlantic Ocean for the first time.

shares

10

way—to

under the

The second cable will be laid

country can

13 to approve the issuance
of 52,200 additional shares, which
will first be offered to sharehold¬
ers of record at the close of busi¬
Sept.

each

under

system

Atlantic Ocean.

summer.

-/

now

*

*

♦

is

voyage

telephone cable

provide enlarged and

at

office.

manufacturing

care

new

and quality by

Western Electric.

be

syndicate of un¬
be formed by Blyth

distributed by a
derwriters to

Telephone service

Co., Inc. It is contemplated that
immediately after the meeting of

across

the Atlantic will be

&

improved and enlarged by the

Sept. 13, transferable subscription
warrants, exercisable at any time
on or before Oct. 7,
1955, will be

is

The

ital
to

to

which

crate

Corporation and the

The 36 cable circuits

caw

op-

full time and will be free from disturbances

which affect radio.

Currency.
*

*

*

-

rity National Bank of Sioux

Falls,

has joined the staff of
California Bank. Mr. Westra has
Dak.,

the Public Rela¬
tions Department.
He was asso¬
ciated
with Northwest Security
National
Bank
for
nine years
been assigned to

to joining
Bank staff.

prior

♦

The

the

laying

the

laying ship
first

new era

will benefit

mam

—

cable.

This is the world's

HMTS Monarch

telephone cable

across

—

now

largest cable-

will be of

gear at

of improved service and

reliability

only individuals and business but

far-reaching value in national defense.

engaged in laying the

the Atlantic. Note special cablebell

laying

not

the bow. Ship's huge storage tanks

telephone

system

can carry

1800 nautical miles of cable.

California

*

*

Hongkong

This

W&M

Tony L. Westra, formerly VicePresident of the Northwest Secu¬
S.

new system

joint undertaking of the Bell System, Canadian

British Post Office.

eligible

approval of the Comptroller of

the

a

Overseas Telecommunication

shareholders.
proposal to increase the cap¬
stock of the Bank is subject

mailed

Shanghai
of California,

and

Banking Corporation

organized last month, has been ac¬
cepted
for membership in
the
Federal
Deposit Insurance Cor¬
poration and expects early author¬
ization from the State Superin¬

in the
commercial and sav¬

tendent of Banks to engage

business of a

ings bank in California. Ian H.
Bradford, Chairman of the Board
Directors, indicated that the
new bank would be ready to ac¬

of

cept deposits by Aug. 15.
lishment of this complete

"Estab¬
domestic

banking service for our customers
will facilitate the transacting of

foreign banking business




in the 12

Robert

affiliated with Pacific North¬

Montgomery St., members of the

Stock Exchanges.

Boulevard.

underseas

—

Enright and Gordon R. Moore are

J. C.

Transatlantic Telephone

of

Manager

-

(Special to the Financial Chronicle)

•

.

banking system will be op¬
as
the Butte Valley office

First

was

Pacific Northwest Adck

(Special to The Financial Chronicle)

Co., 3607 West Magnolia Blvd.

erated

staffed and

He

Drive.

posits of-more than $3,500,000. It
has been in business since 1908.
This new addition to First West¬

of

staff

previously with Samuel B. Frank¬

latory authorities. The Butte Val¬
ley bank, it is announced, has as¬
sets of nearly $4,000,000 and de¬

ern's

-t

Arnold & Company, 404

of Lloyd

Montgomery Street, members
the

-

Calif.—Her¬

Jacobson has joined the

man

Co.,

-

(Special to The Financial Chronicle)

Promotion of two members of
on
the official staff of Anglo Cali¬
completed arrangements to ac¬
fornia National Bank of San Fran¬
quire the assets of the Butte Val¬
ley State Bank of Dorris, in Sis¬ cisco was announced on Aug. 15 by
kiyou
County,
Calif. ..The an¬ Paul E. Hoover, President. Harry
formerly
Assistant
nouncement was made by T. P. Goodfriend,
-Coats, Chairman of the Board of Vice-President and Manager of the
First--Western, and William G. the bank's Seaboard office in San
nounced

Clinchard, formerly Assistant
public
relations
department, head office, has been
appointed
Assistant
Vice-Presi¬

W.

also maintained in New dent and Manager of the Seaboard
Mr. Clinchard became a
London, Paris and Ham¬ office.
member of
the
bank's Oakland
An item bearing on The
Hongkong and Banking Corpora¬ main office staff in 1824.
tion of California, appeared in our
July 14 issue, page 185.
With W. G. Nielsen
Bank

29

(693)

The Commercial and Financial Chronicle

application

Eureka

to

.

<SftEAT
BRITAIN

-

The Commercial and Financial Chronicle

(694)

SO

Expiration
Of VA Housing Loan Legislation in July, 1957
of home ownership, but finds only
about 25% of GIs in New York regional office of Veterans
Administration have exercised their home-buying rights under

World

of

Veterans

II

War

are

reminded

by George C. Johnson,
President of The
Dime Savings

Bank of Brooklyn, that

they have
than

less

two

in which

years

to

Veterans

should

take

financing
the

Servicemen's

made
to

Act.

and

law

For
II

War

pro¬

in

due

are

Only about
25%

the

Administration
their

of

the

veterans under the

of

New

the

have

exercised

home-buying

rights,'

the

of the VA

program

since

it

began in 1944, Mr. Johnson stated:
"This program has brought home

ownership

within

thousands

of

the

families

of

means

who

other¬

wise could not buy homes. This is
because a lower down payment
is

required

type

than

other
The 4V2% in¬

on

of mortgage.

terest

sults

for

rate

any

veterans

also

re¬

in

lower monthly payments
principal and interest.

on

"Furthermore, the veteran is
excellent

themselves

in

this

of

Dime

credit

risk.

The

the

in

experience

our

that

the

of

11

past

is concerned with the
preference of one class of custom¬
ers over another.
A special study
of the history of this preference

years,

closely

par¬

VA

York

New

"More than $40,000,000 has been

paid off by veteran borrowers at
The

have
more than $240,000,000, or 47.6%,
of our
total
mortgage portfolio
invested in VA-guaranteed home
and

Dime,

today,

we

loans."
To assist

veterans who

war

planning to buy
with

GI

a

issued

build

or

are

home

a

loan,

a 30-page booklet
the Veterans Adminis¬

by

is being distributed with¬
charge by The Dime Savings

out

Bank

of

Home

Brooklyn

Buyers

Library

the

at

New

Exhibition

of Homes,

jointly

and

main¬

from

policy

The

idea

that

the

in

the

beginning was
of the nation

resources

should

be

Sincee

lectric

issue.

developed

and utilized
for the benefit of all the people.
utilities

were

re¬

garded at the time as monopolies
with

rates

the

that

concluded

was

the

on

charge the consumer,

could

they
it

restriction

no

only

to insure that the benefits of

way

developing these power resources
would flow down to the ultimate
to give first call

was

consumer

These public

public bodies.

bodies

to

assumed not to be in¬

were

profit on the
Because of the ab¬

making

is

a

being made transactions.
in cooperation with the New York sence of Federal activity in this
regional office of the VA, of which field
during
the
period, there
Andrew C. Dittrich is loan guar¬ were few
statutes dealing with
anty officer. Nearly 15,000 of these marketing
from Federal
power
to

which are filled with
the home-buying vet¬

an

eran,

have been given

New

bank

during the past

away

at the

1906

between

projects

in

construction

and

Hoover

of

commencement

1928,

the
Dam

but

Boulder Canvon Act covering

year.

the
the

project and the legislation
covering the extensive develop¬
ments from 1933 to date consist¬
latter

Unsound Aspects of Federal
Government Power Marketing
this policy

when it built its first

large scale

power

Hoover

Dam.

project

It

have abandoned it.
of

er

the

—

should

never

No stockhold¬

private

a

company would
long selling power on
any other basis.
In the Federal
power business the federal tax¬
for

stand

the stockholders. They

payers are

have supplied all the money. They
have a right to demand that this

price policy be adopted.
It

is

often

that

contended

investment
rate
do

paid

only

by

not share

where

the

as

the

return

a

interest

the

on

the

at

government.

this

to capacity of the hydroelectric

plants and

the basis that there

on

I

view, especially

government

enters

a

to

stream

flow.

This, however, has
happened. The TVA, for in¬
stance, requires all of its regular
utility customers to take their
entire

supply

in

80,000

an

which

it

is that TVA

has built

computing

eral, state and local taxes
of

payments

governmental
duction

of

Fed¬
the

on

made

by

non¬

producers

on

pro¬

systems and

its distributors

generating

no

below

quired to
to

this

the

recover

were

amount

costs

have

their

of

Since TVA

own.

all

facilities

has, for all prac¬
already exhausted
hydroelectric possibil¬

purposes,

of

its

to meet the

it

way

can

expanding needs of its

distributors

is

to

build

more

steam

re¬

fic Northwest.

according

is

In

1946

a

ment of Interior brochure

Depart¬

pointed

Federal

out that the Federal Government's

prior to June 30,
1953, operations failed to recover

Pacific Northwest with very low-

these

cost

standard.

Of

the

power activities

costs

There

by

be

can

$330 million.

over

no

question that this

deficiency—a subsidy to
Federal
up

to

users

be

of

made

bv Federal taxpayers.

Now
to

power—had

it

would

ernment,

be

logical

Federal Gov¬

having built these hy¬

droelectric
dental

also

that the

assume

power

to 5the

plants

main

as

inci¬

objectives of

improving navigation, preventing




activities had provided the

power

on

hydroelectric

to say,

"This

power.

It went

and I quote:

in

practical and

uneconomical, with
some exceptions, for electric util¬
ities,
both * public . and private,
within the region to develop ad¬
ditional/
small

plants. ' As

Federal

public

electric

generation
a

result,

in

the

all

the

Interior

until

the

responsibility

for

of

Department

position

of

recently

very

it

that

was

in omer worus, wnen

rate

regulation

became

result

a

number

districts

former

De¬

took

of

public
the

©ver

a

utility

prooerties

and markets of private utilities in

the

Columbia

seven-state
two small

Basin

TVA

In

area.

area,

the

excent for

privately owned distri¬

or

and

the

original

for

need

neighbor

the

The
was

rates
rate

Income

in

pqssed

tax
est

Federal

1913

to

and

A

the first

this

west.

In

the commencement

state

of

there

of World War II

being 19%, while
corporate tax rate is

the
State

and

local

tax

before the

prise

from

all

income
from

Federal

taxes,

their

Federal

It

including

the

is

also

income

under

preference

policy

was

continued

long after the circumstances had

It will be recalled that

changed.
at the

commencement of this pref¬

erence

policy there

lation

of

electric

was

no

rates

regu¬

and

no

Federal income taxes.-

Regulation
was

states in

of

public

utility

first undertaken in two

190.7 and it

was

provided

in

which

preference

numerous

received

jail

in the

85%

almost

in

users

the state

of

Ore¬

prevalent, received less than
time

is

to

back

get

the

to

intent

of the preference
policy and that is to eliminate the

possibility of any mark-up in the
price of Federal power on the re¬

from

The

users

Washington,

original

income

exempt

taxes.

power

North¬

15%.

securities to the hold¬

thereof

ers

more

exempt

taxes

and

of

Pacific

where private power enter¬
in electric distribution is

gon,

know, these local publicthemselves

the

1953

are

power

war.

are

illustration

in

customers,

have also advanced substantially
during this period. They are about
twice as high today as they were
As you

his

toward

of the Federal power produced by
Columbia River projects and

rates

the

bodies

nothing

dramatic
occurs

hominal, the high¬

were

uo

Law

Tax

because

amount

pays

these ends.

preference clause disappeared.

latter

sale

exemption results in lower finan¬
cing costs than those met by pri¬
vate companies, the income from

of the

by the distribu¬

same

This

tor.

easily

whose securities

be accom¬
plished through rate regulation or
by contract and the policy will be

to

much

are fully taxable
large majority of the holders.
Accordingly these public bodies
already nave an inherent advan¬
tage over private companies.

a

Thus

icy

when

the

preference pol¬

adopted there was
little difference between the

very

tax

burdens

and

publicly

sidered

as

not

of

not

element

an

of

con¬

cost

direction

sold

if

power
taxes

be

35%

cost

of

can

the

to

into* them.

go

sell

preferentially to

which

from

themselves

are

these

levies, can
only result in driving out ulti¬
mately any private capital, which

40%

privately
corporation taxes

the income from

on

to

me

to

exempt

Today, however, the cost of Fed¬
than

permit

consumers

power

now

rates, coupled with Congressional

in

fixing rates.

lower

it

on the part of the Federal
Government to recognize taxes as
an
element of
power
cost and

much less dif¬
were

than

Failure

privately owned
owned utilities and

it made relatively
ference if
taxes

effective

more

There are many other inequi¬
ties, inadequacies and faulty prac¬
tices in'the marketing of Federal¬
ly generated power but time will

first

was

can

is.

must

those tax burdens-

assume

large and Important

se¬

curities necessary to finance these

There

projects

the

is

they are."
gain to

as

financial

net

no

nation

in

ly

following out the
policy because the total
producing the power is not
changed. The cost is merely be¬

initiated and its impact on power

ing divided into two parts instead'
of one.
One part is borne by the
beneficiary of the power in his

not

are

into

taken

ac¬

present

For local public bodies this

cost of

tax

advantage is also substantial¬
as great.
So we have an en¬
tirely different tax situation than
when the preference policy was

rates

costs and rates cannot be ignored.

the

Now what have been the results
of the enforcement of this prefer¬

operation, the preference

tomers

took

available

to

ratio

in

the

non-Federal

users.

steadily increased
it

1953

while

power

of

was

52.2%.

privately

ities in 1946 received 33.3%
the

salable

un¬

received

in

has

in

no

firm

power

utilities

owned

in

all

this

is

authorizes

ment.

ects.

In

utilities
power

1953

privately

received

33.3%

generated.

In the

next

Federal

the

ef

Or

could
I

is

to

»

whether

power

busi¬

the efficient

Federal

some

be

or

Govern¬

all

it

of

a

eliminated?

suppose

to

as

extent,

ment

past.
the

proj¬

the

ist

Federal

have

power

today

that
and

Govern¬

gone into the
business in the

The past interests
extent

conditions

owned
of
all

there will always be
whether, and as to

should

large scale

Pacific

case

Business

non-essential activity cfcmpetitive
with
private
enterprise
which

recent

additional

Power

necessary

conduct

Northwest after 1960 unless Con¬
gress

thoughtful men,
good of the na¬

consider

uc

of

ness

whatso¬
privately

the

that

overall

Federal

Let

cus¬

For instance, in the case of

will be available to

to

Necessary?

aluminum

accelerated

been

the

Is

earlier

and
received
rela¬
tively the same amount in each
year (28.4% as against 29.3%).
The trend toward increasing of
the
supply to preference users
years.

shifted

mind, will not permit these
marketing policies to continue.

of all

The Federal industrial

tomers,
mostly
electro-chemical,

is

taxpayers, who in
not the beneficiary.

tion in

these

the

believe

with

util¬

from

power

I

Mean¬

owned

other

are

useless financial effiort will,
however, if followed to its logical
conclusion, destroy private initia¬
tive in the power field, and it is
not unlikely that it will also con¬
fiscate as well, indirectlv
perhaps,
private investments already made.

cus¬

the

38.3%

cases

This

policy?
Starting in 1946 when all of the
principal Federal projects were
ence

in

the

and

general

most

ever

established

the

served

greater

ed

a

istration

are

town

he, in his electric rate,
local, state and Federal taxes

end¬

distribution passed into the hands

which

next

in

was

of municipalities and cooperatives.
Like so many government poli¬

certain set of circumstances, this

the

Federal

across

rates without restriction

the

cies

denied

neighbor

and

cost

debate

properties, the entire retail

concern¬

from which he

is

power

the important Bonneville Admin¬

bution

is

power

pays

year.

this

of the Interior poliev

partment

large

of

Federal

The company

fully effective, as it now is, the
ability of electric utilities to fix

amount

•As

any

by a cooperative or a municipal¬
ity gets power for less than true

electric

the

their establishment.

mattes

in

til

actively promote

far

buys

were

them out

to

a

road

would obtain

as

projects and in 1953, 18.5%, or
only about one-half the relative

and

to

pref¬

of a
privately owned
"second-class citizen" so

utility
as

go

This

in tins field,

This

under

will

power

customers.

policy in effect

consumer

Feder¬

ot

competitive forces fully operating

the

took

generated

erence

regulation of electric util¬

mandate, not only to contract with
public bodies and cooperatives on
on
a voluntary basis, but to seek

Government today has a ; rates

utility

administration

the

In

statutes

a

turn, has made it im¬

only were public bodies
cooperatives given preference

Federally-generated power,
but the statutes covering the prin¬
cipal projects also provided that
power already contracted for by
private utilities could on rela¬
tively short notice be withdrawn
and transferred to these prefer¬
ence customers, if it were neces¬
sary to meet their requirements.

continue

$75

an

during fiscal 1953

enues

large steam

plants, as it has been and
doing. Much the same under¬
taking of a permanent utility ob¬
ligation has occurred in the Paci¬

equivalent amount
of energy the Federal power rev¬

million

facilities.

plants and extensive transmission

ities, the only

basis

its

square
mile
area
supplies. The result

now

rate

and

from

policy, in effect, creates an
obligation on TVA to build all the
generating facilities ever needed

tical

3%

in

not

field which is competitive with
private industry. But even on this
basis, using a long-term interest
of

Not
and

fluctuations

purposes.

power

resulting

from

on

ally

preference

under

comse,

100%

His

count.

for

of

power.

required that public bodies should
call over private com¬
panies
in
the
construction
navigable streams of dams

Ultimately,

present practices

results

were
same

and

preference
incorporated in

same

Secu¬

dissolve

ed.

policy
was
also
the li¬
censing provisions of the Federal
Water Power Act of 1920, which

would be variations in the output

This

rates for Federal power should, in
addition
to
covering other cost

elements, provide

irrigating land, would

or

have contracted to sell power only
up

the

Exchange Commission

the

eral

policy.

This

have first

floods,

rates and

regulatory
commissions
designed to bring about the

by

ently carried forward this prefer¬
ence

tane.

to

Preference Customers

ities recognized the monopolistic
character of their operations. The
standards of rate making adopted

52%.

national

a

the secondary power
preference customers

such

do not elect

to regulate inter¬

power

and

This

today

was

only

which

holding companies.

which the conservation of natural
resources

terested in

booklets,

the

undertaken as a part
of our investigation.
This study
showed that the preference policy
had its beginnings with the pas¬
sage of the Reclamation Acts of
1902
and
1906, a period during

Home Builders Institute.

advice

sion

was

local

7

page

market¬

ing policy

tained at the bank's main office by
the bank
and
the
Long Island

The distribution

of the Fed¬

aspect

also

than 29,000 home loans

more

second

fine

Tjr

Continued

of Marketing

with

the Federal Power Commis¬

gave

you

eral Government's power

has

Brooklyn

The

its

tration

Pointing out that his bank has
actively supported the loan guar¬

think

I

office.

York

Veterans

banker said.

anty

the region
possible be met."

as

Uneconomic System

of

proud

pride

veterans

allels

the

expire July
25, 1957.

of

rities

far

so

progressively by other states
thereafter. It did not become fully
effective until Congress, in 1935,

the right to regulate and

showing.

"The

Readjustment

to

office

credit

pro¬

in

visions

regional

justifiably

eral

veterans,

jurisdiction

is

record.

World

War II

office

homes

buy

vided

World

state electric

must

will agree with me
that undertaking to supply power
Readjustment Act.
at less than cost to a large area of
York regional office of the VA the
country is uneconomic and
reports that it has'allowed claims can only result in a constantly
on
only 3/10ths of 1% of all the expanding Federal power business
with
constantly increasing calls
home
loans
it
has
guaranteed,
whereas nationally, the figure is on the taxpayers for funds to pay
for
the
necessary facilities.
6/10ths of 1%. The New York VA

under the lib¬

terms

George C. Johnson

Federal power needs of

program

Servicemen's

the

for

the

needs of the

George C. Johnson, President of the Dime Savings Bank of

Brooklyn, praises

additional
power
region. The program
of the Federal Government has,
with
minor
exceptions, become
the single source from which all

meeting

Warns World War II Veterans of

Thursday, August 18, 1955

..

.

the

us

only to

same

valid

circumstances

ex¬

which,

allegedly, may
have once justified Federal entry
into the power field. ~ "

of

the Central Valley project, which
'

until recently sold 95% of its out¬

It has been contended that Gov¬

put to California private utilities,

ernment

from

was

now

on

practically

all

sal¬

activity in this business

necessary

able firm power will be delivered

large', scale

to

needs of

the

preference customers, leaving
California "private
utilities

because: there

unemployment;

was

the

defense had to -be satis¬

fied; the Atomic Energy Commis-

Number 5456

Volume 182

sion needed
connection

projects

Federal

in

developments

with multiple-purpose

too large for private

were

financing; the private utilities be¬
cause
of over-capitalization and

think

I

the

promote wide-spread

Local private and

presently

is, and essentially al¬
has been, a local problem.

ways

in

droelectric

Federal

Federal

Government

soon

feasible

been

none

.

as

in the process of
financed

and

—

be

not

calls

en¬

which

ernment

interests

local

when

cide

public members.

$11 billion in excess of the total
Federal
investment
to June 30,

tributable

than

more

com¬

$2.6 billion, or
present Federal

the

Local

total.

these

bodies

public

invested to date

over

electric properties.

have
$2 billion in

These private

and

in

are

undertake
construction.
I
think, be

un¬

holding companies and

necessary

sound financial structures prevail

throughout
the
electric
utility
field. A study of the average rate
of return earned .by private util¬

during recent years shows
that it is practically the same as
the average rate of return which
ities

commissions and courts
is

cided

ital.

It is self-evident from the facts

development

non-Federal

that

of

should be ac¬
tively encouraged by the Federal
Government. The partnership pol¬
hydroelectric

power

the

has

and

ities have contributed about 50-50
to

electricity

installing
of

90%

the

on

There

farms.

over

is

no

necessity for REA to
continue making loans in substan¬
tial and increasing amounts for
enlarging facilities. 4

longer any

Private

Power

Companies

Can

to

that

clear to me,

whatever

the

therefore/

situation

have been in the past, the
and

local

public

electric

may

private
enter¬

prises of the country are now of
sufficient financial strength, and
capital accumulation in the hands

citizens and institutions
is adequate, to finance the fur¬
nishing of the country's electrical
needs on the basis of earnings rer
alized from reasonable rates. The
of private

government's power activities are
therefore

now

future

able

with private

Finally,

and in the foresee¬

will

be

competitive

enterprise.
might ask, despite

we

this situation as it is now

and ap¬

for the future are the re¬
sources
of the Federal Govern¬
ment so plentiful and are the bur¬
dens of Federal taxes so light that
pears

should

There

be




highest in the world. We could point to our con¬

consumers,

or

Federal

for

of

or

river valley or area over
Rates

level for

is

another.
are in

stated

Federal

the

on

same

commercial

other

full recognition

with

I

we

could suggest that

the

legislative hall to settle their dif¬
police

or

slave

camps.

"All of which is not
we

ljias joined the staff of John

could say a

boasting, but just fact. And,

good deal more."—Herbert Hoover.

And who else could say as

Donahue, 430 Sixteenth Street.

basis as any
undertaking,
of all costs,

governmental field,

ferences without the use of secret

DENVER, Colo.—Helen I. Mor¬
ris
L.

people.

supposedly decadent people still rely upon the

ballot and

(Special to The Financial Chronicle) /
.

our

&

With John L. Donahue

power
The accounts should be

must.

a

Dempsey-Tegeler

Co., 210 West Seventh Street.

increase in the exist¬

an

our

one

In order
in the public

of life. We could point out that the

"In the

ANGELES, Calif.—Robert
H. Heinbockel has been added to

power

to promote economy

ing rate

Company.

LOS

urgent need of revision.
business

lengthening
mechanical
genius of our people has, by millions of labor-sav¬
ing machines, taken the sweat from the backs of *

stantly improving physical health and
span

most of

of

of

perfected the greatest productivity of any
on earth; that our standard of living is the

life has

Dempsey-Tegeler Adds

staff

might occasionally men¬

we

point out that our American way

"We could

130

Street.

(Special to The Financial Chronicle)

the

Hoover

Herbert

something good about ourselves.

nation

dis¬

no

much?

OHIO ELECTRIC COMPANY

COLUMBUS AND SOUTHERN

RESULTS OF OPERATIONS
For the three months,

For the twelve months

ended June 30

ended June 30

firmly convinced, be put in

am

charge of the Federal Power
mission which already has

Com¬

1

complete jurisdiction over the in¬
terstate rates of privately-owned

with

Electric
Heat

observations apply

to present and
projects. What spe¬
should
be
done with

equal

1955

1954

r

Operating Revenues

utilities.
Most of these

1954

1955

such

force

Total

$ 9,495,783
1,800

$ 8,203,076
2,467

$37,300,611
29,814

$32,844,093
29,384

$ 9,497,583

$ 8,205,543

$37,330,425

$32,873,477

$ 1,461,134
2,098,804

$ 1,276,344

$ 5,680,204
8,041,525

802,334

1,303,000

727,080
966,715
641,352
1,052,000

3,192,002
3,970,359
3,012,165
5,456,000

$ 5,428,542
7,439,306
2,382,891

$ 7,508,663

$ 6,585,751

$29,352,255

$26,065,166

$ 1,988,920

$ 1,619,792

$ 7,978,170

$ 6,808,311

future power

cifically
is

a

projects? $2.3 bil¬

invested in
business

Fuel used in electric

a

for

billion total
being and under

$10

more.

Operating Expenses

money to have
strictly commercial
like selling power. The

of

lot

way

Other

Provisions for

Federal

the full earning ca¬
pacity of the existing properties
by increasing rates so that they
will yield a fair return on the
investment.
It
would
be
fool¬

income

1,922,260

1,043,215
800,176

depreciation and amortization-

General taxes

is to

A necessary first step

production-!

operation

Maintenance

plants in
is a lot

taxes

bring about

Total

of

because
No

low

a

established

of the present

be

considered

each

one,

fit

will
some

I

less

of

on

$

Total

one program
them. However,

Gross

income

Interest and Other Income

one

matter

final

of

Preferred

great

not-too-distant future,

$ 1,673,277

532,234

$ 1,564,222

$ 1,141,043

214,471

214,471

Outstanding at End of Period-Earnings per common share

Common Shares

considerable portion of our
power
generation will

atomic energy as a

fuel.
Whatever authority controls in
one hand the power sources of an

♦Denotes

red

This is

an

statements

figure.

926,572

2,201,360

2,401,360
$0,56

The Company's fiscal year

examined by independent
(

f

$

$u.3Z

124,523

'

ends December

public accountants.
*

.

$

24,594
$

151,405

126,246
106,968
127,001

2,288

$

360,215

$ 8,129,575

$ 7,168,526

2,105,895

1,810,168

$ 6,023,680
859,824

$ 5,358,353
859,824

$ 5,163,856

$ 4,498,534

2,401,360

2,201,360

$2.15

$2.04

'

interim statement.
are

$

$ 1,349,751

Earnings on common shares

ac¬

53,485

489,829

Dividends

National
use

$

65,131

—$ 2,054,051
Deductions

Net income

ob¬

*

very

32,324
21,681
*520

no

with
a

$

29,549
36,628
* 1,046

is clearly indicated.

conclude

the

$
subsidiary

Other

gravity. We are on, if not a bit
over, the threshold of develop¬
ment of power by atomic energy.
In

subsidiary,

problems must

plan for their ultimate dis¬

servation

interest income from

expenses

Provision for deficit of

disposition

in connection with

and

all

Rentals and

Federal power sys¬

tems. A number of

3,508,859
2,434,568
4,871,000

f

earnings level.
rule can be

the

to

as

-

Other Income

fast

and

hard

—

Operating income

hardy to sacrifice any of the pres¬
ent Federal taxpayers' investment

cording to the latest estimates, a

program

Company,

Joins Nelson Burbank

crimination in favor of one class of

began, was only $22.5
billion; at the end of fiscal 1953
it was $266.0 billion,
or nearly
12 times as much. In the 20 years
from 1933 to 1953 there have only
been three years in -which the

at

Main

with

connected

now

Securities

(Special to The Financial Chronicle)

position

can

power

South

is

tion

Mass.—Rolfe S.

power,

afford to sell Federal
less than it costs to
everyone who may want "cheap"
power?
I call your attention to
the fact that the debt of the Fed¬
eral Government at the end of
fiscal 1933. when its active power

we

"In all this clamor

(Special to The Financial Chronicle)

Bristol

free

have tried to

help.

With Bristol Sees.

Ollerhead

we

over¬

system.

from

comes

even

nations whom

RIVER,

would

American

our

it

And

La Salle Street.

and administrative officials.

citizens

throw

the staff of

who

abroad

and

Miller, Spink & Co. Inc., 231 South

FALL

creeping collectiv¬

adopted without de¬

the Communists at home

from

CHICAGO, 111.—James E. Cliflin has been added to

be

can

stroying the safeguards of free
men. It comes
bitterly and daily

with Vance, Sanders &

lion
seems

ism

source.

portion attrib¬
should be en¬
couraged by all and emphasized
and pushed by Federal legislators
the

private—pay
utable

present power

Do the Job
It

minded totalitarian liberals who
believe that

refrain from
based
on
atomic
and

BOSTON, Mass.—Kerry G. Sa-

counting and compensatory and
non-discriminatory rates should,

development

it doe.3 not exist today.
the non-Federal util¬

past,

REA

as

banty has become associated with
Nelson S. Burbank Company, 30
State
Street.
He was formerly

navigation

neglect
in

any

villainy is pursued by
triumphs:
"And it comes from the fuzzy-

present

on

from

law and virtue

from

flood
control
or
irrigation, and local
electric utilities—either public or
to

including the cost of government.
The whole matter of adequate ac¬

been

electric

rural

should

withdraw

comes

where

of
the

icy, under which the Federal Gov¬
ernment pays that portion of the
construction costs which are at¬

therefore, has

reasonable.
there

If

have de¬

to attract cap¬

The rate level,

been

of

necessary

society

Miller, Spink Adds

•

tion.

Exchange

Commission has dissolved all

of

dirty linen in secret. It

love of sensational incidents

our

(Special to The Financial Chronicle)

largely made up of non-agency or

generating facilities.
and

a

unable to

wholly

Proper cost and rate standards
should also be covered by legisla¬

Securities

energy

the

public bodies are able and
willing to construct all necessary
The

it

as

perpetuation

based

as

sources

entering

construction and market¬
ing agencies and which will de¬

non-Federal
public bodies to obtain ample
capital lor the building of power
plants, toll bridges, toll roads and
other revenue producing property.
In the 13 years to 1953 privately
owned
electric
companies have
added $13.2 billion to their in¬
vestments
in
properties, a sum

alone

field

this

power

and

1953

curb

will

hydroelectric plant
This
body
should,

invested

as

energy

straining boay in ihe Administra¬
tive branch of the Federal Gov¬

accumulated savings in
the hands of private citizens and
institutions now enable both pri¬
Large

In

Federal tax¬

the

form

comes

to wash their

the

future

The situation calls for some re¬

fact

1953.

further

any

on

tirely by private capital.

companies

still

are

payers.

much energy

being done by entirely new plants
or

deficits

should

unnecessary

agencies them¬
contributing.
This is

already built

The

power.

falling
In

energy.

Nation's

our

present

our

large and its debt is astronomical.

Federal

panies

atomic

or

daily from the habit of our
political parties to deplore the opposition. It arises.:from the forthright refusal of the American people

energy

gas,

and

Commission about

vate

oil,

welfare

most economical utilization of

years,

construction

coal,

which will permit the
hy¬

may

there

There

are

—

mal plants

past,

construction
for
defense
purposes, private utilities are con¬
tributing
to
the extensive 're¬
quirements of tne Atomic Energy
the

source

is
unemployment prob¬

the

in

plant

selves

whatever

from

ments

"Criticism

the ones to de¬
power require¬

of

Government's

as

be
our

interest

15

last

organizations
velop all of

distribution

there is no
World War calling for emergency

the

to the end that

nor

About Ourselves!/

without deviation
local, non-Federal

directed

view,

Power generation and

necessary.

use.

situation

there has

and

lem

desirable

neither

is

future

"Something Good

on

be reviewed and, upon re¬

power

be undertaken in the

may

philosophy

water

the

no

of

National

our

so

industry.
For
it seems to me urgent

reason

that

it

if

can,

all

publicly owned
utilities presently own the ther¬

Whatever

been

structures

whatever
construction

portion

power

multiple-purpose

projects

"have

this

capable that Federal financing of

could
not construct all the property that
was needed; adequate service was
not supplied to the rural
areas;
electric rates were too high to
financial

faulty

ines¬

is

conclusion

the

control

elects,

deficit.

a

nation

industrial

has not op¬

Government

erated at

31

(695)

The Commercial and Financial Chronicle

..

large blocks of pow¬

hydro

the

er;

.

31. at which

time its

financial

32

The Commercial and Financial Chronicle

(696)

Continued

from first

The U. S. Situation

page
The

States

The Future

the Dollar

Gi

goid to

thousand dollars according to

inscription it bears. Each can
"he produced by the government at
the same slight cost. Intrinsically
each is of the same value, which
tor practical purposes is nil.
In
respect to this paper money, with
the exception of the silver cer¬
tificates, the government has as¬
sumed
egrees

to

it

a

into

It

neither

nor

convert

obligation.

no

it

redeem

thing of intrinsic value.

The owner receives it and holds it
at

his

risk.

own

Its

individual

the

ordinate

popular

the

refer¬

characteristics

dollar

present

because,

of

I

as

to point out, it is this lack

propose

intrinsic

•of

specific

make

I

value

with which it

the

and

ease

be produced

can

by

In

power.

for

made

to

safe

be
money
in the
is considered a

as

money

stable

and

terms,

in

paper

can

—

serve

that

sense

.is

and

of

measure

repository for value?

The

provision

function

of

is to

pose

merce

of

Money

and

Its

the needs of com¬
of value and

measure

a

of

a

pur¬

exchange

and

an

as

repository for savings.
original understanding of

adequate
In

the

the term, money
of
a

intrinsic

consists of
the

value,

thing

a

being

unit

geared to this great inpouring of

Enterprises
have
been
launched, money has been loaned
and
borrowed, employments es¬
tablished,
wages
and
salaries
fixed,
contracts let
and taken,
property sold and purchased, in¬
money.

commitments entered

spending would constitute
It would bring
tions
in
agriculture and
departure.

resented

governments,
have

decreed

suitable
These

for

paper,

inscription, to be

money.

make
have not

attempts

serve

funds,
bearing
a

pressed

to

paper

been
of com¬
They have been prompted

as

money

by

prompted

the

needs

and

painful

by

in

all

industry,

deeply

and

of

masses

sharp

a

cusiacc*-

people—

of their
true
would require
cessation of production from mar¬
ginal lands, production now com¬
mercially possible only because of
government
price
supports.
It
would require reorientation in the
field of industrial production and
many

with little
import.
It

competitive

have

times

trade

of

witnessed

Modern

as

are.

distribution

■departures from this practice and

things

upon

From things as they are,
substantial
reduction
in
public
they

specified amount of that thing,
or silver.

commonly gold

become

has

corporate,

dislocations

is

money

government.

serve

as

medium

of

been

The entire economy, per¬

created.

branches

Definition

The

twenty

has

normal scope

its

into, all in reliance

Broadened

than

more

lar's

future.

official
country it has

An industrial and commer¬

years.

stalment

question

source

a

cial mechanism stimulated far be¬

government that lies at the heart
•of the question of the paper dol¬
the

by

and

favor

our own

continued

sonal

these

become

government has
of

markets

grasp

search

and

for

conditions

under

highly
This

reorientation would take time and

and

tor

take
are

in

field day for the agita¬

a

He

demagogue.

would

quick advantage of it.

more

None

of this than those

aware

the seats of government.
For

by the needs of

examples illustrative of the
helplessness of governments
caught in the toils of an advanced

purpose

paper

merce.

government, the
being to enable the gov¬
ernment to provide itself inex¬
pensively with money to spend.

major governments of today. Such

The

inflations

motivating

been the

national

necessities of
defense

to

or

have

may
war

or

carry

of

out

peacetime project or pro¬
The latter was the case in

some

gram.

1933

force

when

our

substituted

existing

government

own

paper

money

metallic

for

standard.

the
But

inflation,

money

profitably turn to

anv

might
of the

one
one

in progress on every
It
is
a
world-wide

are

continent.

madness. Its evil

As example France would serve
as

by government paid for by abnor¬

adult lifetime of living persons the

well

l

purchasing

which,

paper

practice
well established, has
instance become a politi¬

in every

cal fixture from which escape has
proven

impossible. More than

demonstrated

in

the

once

this is
being redemonstrated today, and
I propose to point out some of the
compelling reasons for it.
In a
word, history is repeating itself,
past,

another.

as

mal emissions of paper, a
once

Government spending on an un¬

precedented scale then began, and

power

franc

Within

the

of

the

French

has

dropped from
20 cents American gold dollars to
less than one-quarter of one cent
of

present depreciated

our

It requires

money.

to

paper

discussion

no

demonstrate the disaster

holders

of

francs

to all

securities

or

None has done

On the

so.

con¬

public expenditure steadily
the public debt grew

trary

increased,
greater

the

and

the

dollar

that

a

continued.

major

pated

expenditures,

coat

hut

progressed.

Ten

have elapsed

through

the war
will shortly

as

years

since the

the

both

true

great part of that

a

defrayed

was

is

It

of

forced unantici¬

war

higher taxes

and

depreciation

enaed

war

abnormal

expendi¬

the

last

two

illuminating.
look

hard

because

which

most

are

It is at these that

public

our

indebtedness

America

and

of

most

Latin

Asia

as

be

must

two

taken.

This

the

ago

years

coun¬

pledged with particularity
substantially reduce expendi¬
and

tures

tinue

taxes,
to
bring the
balance and discon¬

into

Budget

inflationary Treasury

tices.

In

word

a

to

sobriety and bring to
extravagances as well

as

tive

taxation

Administra¬

tions

which

demned.

of

it

Yet

past

end the
the puni¬

an

unreservedly

con¬

despite its expressed

determination to do each of these

things
in

the

has,

Percentage

the

anced.

done

wise
has

in

decrease

its

taxation

budget

Even

minimum

a

unbal¬

significant

is

Administra¬

new

felt compelled

from

Congress

to

in¬

an

in the lawful debt limit, an

crease

increase
diate

its

slight,

remains

more

soon

very

demand

them.
decrease in
of

none

been

the fact that the

tion

Administration

new

fact,

of

which

it

imme¬

took

this

Is

the

failure

chargeable to

a

the

on

of

part

Administration

present

concealed purpose

election

to

secure

to

incompetence?

through prom¬
ises it did not intend to keep? Or
Or to ignorance

equals the fairly appraised value

lihood

of all property, public or
private,
within the country. Yet there has

tablished practice of paper money
inflation is to be found in the field

been
our

no

substantial

expenditures

abatement in

nor

is any such

abatement in sight.
Menace

Paper

of

money

mother of fiscal

in

less

of politics.

a

excesses.

prolific
Limit¬

supply,

their

comes,

expert
scribe

people,

often

governmental

improvi¬
extravagance are its
inevitable offspring. A fiscal
vice,
in the
beginning it exercises a
inagic spell over both government
and

and

people.

Once under its addic¬

tion,

though warning signs are
everywhere, escape proves impos¬
sible.

of

are

es¬

economic. Nev¬

ending,

are

when

can

foretell

of
to bring about the

elected

these manifestations.
the

does.

educated

for

cure

ills

monetary

and

But

it

explain

He

can

pre¬

economic and

to
is

his
the

credit
person,

uneducated, with un¬
derstanding of the motivating hu¬
man
forces
which
prompt and
control political action, who bQst
knows

or

whether

the

cure

accepted

or

to this

examination of

an

rejected.

In

will

be

respect
our own

lacking

their

certain

of

confined

to

universal.

is

It

the ruinous

are

groups

understanding
consequences

history

tablished
has

ible

This

value of

thev
sion

in

there

in

be

a

agricultural

polls

French

depreciated

prices.

is

It

be¬

reduction

in

from the abnormal to the normal,
from fiscal

sobriety, in
definite period of

adjustment
laws
mal

to

to

assert

It

is

intoxication to
a

an

in¬

and

re¬

word

pause

permit
control

peacetime

stored.

and

economy

because

natural

all

a

nor¬

to be

re¬

political

experience, whatever the country,
shows that such a period, irre-?
spective of responsibility or bene¬
ficial after effects, means d'ef°at
for
the
narty in oower.
Futile
temporizing and half measures
therefore

ta^e the nlace of

tive action.

assembled

penditures

cura¬

New justifications are

in
or

the

down

franc

to

one

cent

of

less

in

paper money, ev=n

in

the

pfter

fall

of

one

annt^«^.

govern-

Instead

of

additional

extrava¬

have followed in

appease¬

ment

of

been

little

in

or

the

attempt

no

other

American

countries

There has

voters.

angry

at

re¬

European

or

standard

paper

Great

and

Britain, un¬
der a Tory government, recently
legislated an unprecedented in¬
crease
in welfare payments.
As
expected, the political effect was

support of new ex¬

'the continuance

of

tein
ed

The

Problems

a

increase

of

reciprocal

ships, demonstrating how one po¬
the

man¬

munitions

and

arms

in

and

how

and

view

patiently

of

the

fact

that

into an increase of
unprecedented public

us

further de¬

accomplish that which its
prodigal

spending by governments. Those
in office know that they could not
survive

its

discontinuance.

To

continue in power

they must con¬
tinue to spend. And being human
they will continue to spend until
the people seem ready to accept
the
painful
readjustments
the
discontinuance
of
government
prodigality would entail.

A, M. Krensky

Displays

"Live Stock" at Fair
111.—Arthur

M.

Krensky and Co., 141 West Jack¬
son
Boulevard, members of the

to

back

come

the

When

or

factories

and workmen dismissed.

this

market?

t^ke

to

How

but

wire

confront

direct private

a

for

up-to-thequotes.

fer

stock operation and to an¬

on

swer

any

questions from the pub¬

lic about market movements.

With Richard J. Buck'
(Special to The Financial Chronicle)

BOSTON, Mass.—Mary A. Red¬
man

has joined

ard J. Buck

the staff of Rich¬
Statler Office

& Co.,

Building.
Miss Redman
merly with Coburn &

for¬

was

Middle-

brook, Inc.

With Inv.
BOSTON,
ters

has

Mass.—Paul

become

J.

affiliated

Wa¬
with

New England, Inc., 68 Devonshire
Street.

closed

will

political

and

Planning

(Special to The Financial Chronicle)

Investors Planning Corporation of

it

office

reduced

a

makes clear the forces which suc¬

cessfully combine to prevent ade¬
quate action.
to

and

pro¬

balanced
Consideration of them

Reduced

Chicago

news

in

news

Krensky firm
vyill be present at all times to con¬

Joins Keller Staff

establish it?

contemplating

expenditures

to

Jones

Dow

Executives of the

(Special to The Financial Chronicle)

few of the terrors

a

a

company

board

Where is

long

discover and

are

Stock

things

of

manufactured

found

booth,

minute

the

quotation

a

service ticker and

to

giving

annuallv

billions
or

Midwest

and

livestock,

as

have

their

in exchange for cre¬

things.

York

Convinced that the public wants
see
"live stock" operation as

These

money.

paper

stops another and true market for

budget.

to the gold standard is that

money

it would

advocates claim—prevent

already heavily

our

dollars

markets

which

The insuperable ar¬

gument against return from paper

great

our

debt with consequent

holders

in

stepchildren

remain

long

democracies.

Exchanges, is taking a booth as a
temporary branch office at the
Illinois State Fair in Springfield,
Aug. 12-21.

they force
an
already

These

is

complete and there is no escape.
Those with voting strength do not

New

in

must be

until

another

could

take

duced

forces

entrapment of government

believes

An¬
artificially
stimulated housing boom. Another
is found in our vast give-away
programs which -make mockery of

ated

action

litical

able delays and dislocations?

reason

And

power

of

is

acres?

the entire list
economic relation¬
run

CHICAGO,

others, an in¬
dustrial activity of major propor¬
tions, bearing no relationship to
peacetime pursuits. How will this
great mechanical and labor force
be
turned
back
into
profitable
peacetime
pursuits?
How
long

other

idled

of

might

one

scene

ourselves

it

markets

of unsold surpluses forcing

crease
an
so

well

will

foreign

consequence

will

for

if

tobacco

and

cotton

shrink leaving in America an in¬

greater difficulty lies in the
ufacture

of

ducers

foreign aid is discontinued and as

that
a
survive a
sharp
decline
in
agricultural
prices? Yet artificial support of
farm prices as a factor in our un¬
balanced budget and its discon¬
tinuance
would
certainly result
in a drop in prices.
Another ana
in

party

feeder

cattle

and pro¬
artificially support¬

at

And if all these are
there not cause for
the part of the prune
and raisin growers and the pro¬

Ahead

What observer of the American

political

feeds

prices?

unfavorable.

not

the

of

flocks, it
prices of

who must purchase corn

for

by

other

small gestures of reform have re¬

several

and

decline

a

public spending would force ma¬
jor economic adjustments in both
industry and agriculture, a return
turn

disas¬

and

Or

reason?

sup¬

he sells? Or of
for the same

farmer

or

es¬

evidenced

France

one-quarter

reces¬

activity

too sharp

substantial

cause

at the

marked

industrial
or

far

is

as

dairy

is

Despite decline in the
the

gratuitous

the fact that

face defeat

now

complete

to

in

countries.

rnpnt

support the

on

stopped
discern¬

clearly

means

conditions

well

no

the

his

feed

to

also

complaint

permanently

slippery road

our

buy

should

protected

inflation

approach

than

must

artificial

gives

of

money

the

of

ter.

that

paper

been

short

our

It is chargeable to

fiscal

and

part

organized

either

depreciated

the

mone*°rv

or

not

as

of

those

a

end

human

as

preciation of

political

must also be political. The

The permanent addiction or situation
is illuminating.




an

It is true that the evil

competent, ec^nnm^t

negligible in cost
of production, its evils not imme¬
diately apparent to a deceived
dence

abandonment

ertheless their origins

Paper Money

is

of

manifestations

and

The

I think few will be found who

employment

respecting the like¬

It is

doubt the pre-election purpose

the

answer

is

people.

one

the

on

will those affected bear the inevit¬

advantage.

should

The

measure

prac¬

fiscal

restore

the poultryman's claim that if the

the eggs and birds

reaction

governments
any

is

to the opposition, an oppo¬

power

look abroad for proof of the help¬
lessness of governments caught in

now

considerable

a

This

form

sition

changes they proposed.

of paper money.

be

even

of truth.

IMin

try turned from the party long in

readily afford examples. The dif¬
ferences are of degree.
But it is
unnecessary
for
Americans
to

snare

without

a

so.

Italy,

of

might

Often this argument is not

worse.

gances

is

prices should not also be
high in the same manner?

kept

And who will deny the justice of

port to the price of the grains he

dollar this is of great significance.
of all the years since 1933 it

But

farm

government

things

retrenchment

the

all

They

spending and auxiliary legislation,

istration

ering the future of the American

discontent.

Britain,

projects.

Thursday, August 18, 1955

.

.

assert that under another Admin¬

sulted

inflationary

and

Great

indefensible

wise

Treasury
practices continue. To one consid¬

and

tures

idence have

Countries,

that political
opportunism alone prompts other¬

human

end.

an

respecting
the
natural
conse¬
quence of its acts?
I do not say

Low

This is defended by
aware

purchasing
power
of
the seeKing pi election from aonormal
economic
forces
pressing
upon
paper dollar began its decline.
them. Both governments and peo¬
Twenty-one
years
have
now
ple
have
become
victims
of
an
passed and during that time each
economic malady which must run
succeeding
Administration
has
its course before a cure is pos¬
declared
its
purpose
to reduce
sible.
expenditures, keep the budget in
balance
and
It is one of the dismal facts of
bring inflation
to

payable in francs with consequent
personal unhappiness and political

prodigality and fiscal improv¬
become the accepted
practice of every paper money
government in the world. Unhap¬
pily our own government does not
afford an exception. Its expendi¬
tures have already reached such
heights that a distinguished Sena¬
tor has recently pointed out that

is advanced but

reason

one.

fully

persons

the

and

ful conduct of public business.

Every

the true

demands

repudiated.

were

international trade and commerce,
in political and commercial con¬

whatever the motive the result is

pros¬

of

ownership

clauses of the government's bonds

expenditure

the same—abnormal expenditures

permanent

gold
by American citizens was declared
unlawful,
all
privately
owned
gold seized and paper money is¬
sued
in
exchange.
The
goid
The

impress is every¬
where apparent, in production, in

fusion, in the irrational and waste¬

price

general

insure

and

perity.

to

provide

the

new

uncertain.

and

paper monetary standard
The declared purpose was

raise

ten

spending

sums

a

in

in limitless supply is
the printing.
great

from

country

or

for

The spending of

time, present or future, is limited
to that for which it can be ex¬
to

had

be

the

level,
induce full employment and has¬

people to In¬

government

when money
to

yond

ence

counterpart

the addiction of the

valu^ at any

changed.

its

has

stimulants

narcotics

to

a

in 1933.
to

ten

took

old.

the United

government of

.

the level of the in¬

dividual, what Congressman from
agricultural district could hone

an

BOSTON,
Taradash

is

Mass.
now

—

Murray

with

M.

Keller

&

Co., 53 State Street.

With Palmer,

Pollacchi

(Special to The Financial Chronicle)

BOSTON, Mass.—John N.
len

and

Cul-

Roland A. Pettinati have

been aded

to

the staff of Palmer,

Pollacchi & Co., 84 State Street.

for re-e7ection should he be narty
to withdrawal of all

for

farmers?

trial

area

support to

ployment
And
are

who

kept

Or

should

price support

from

he

measures
un

and

will

sav

high

indus¬

an

faU

to

give

to keep
wages

that

if

em¬

With Coombs & Co.
(Special to The Financial Chronicle)

LOS

high?

ard L.

wages

Wicks

by. government

ANGELES,

Calif.—Rich¬

Murtaugh and Clarence E.
are

Company.

now

602

with
West

Coombs and

Sixth Street.

Volume 182

Number 5456

The Commercial and

.

3

Federal

the

for

Continued from page

Index of Manufactures and

Board

Reserve

for

James Talcott, Inc.

foods. We

prices for all commodities except farm products and
show an index of value of manufactures which

is volume

also

Sells Common Slock

adjusted for prices.

Are Common Stock

Public offering of

Cyclical Swings, American Industry
of

Prices (All Comm. except

TooHigh?

Farm Products &

Volume FRB Mfrs.

Index Value of Mfrs.

Foods)

High

Low

Low

High

Low

126

84

110

98

139

82

1951

131

87

120

106

157

92

At present common stock

1952

136

91

120

106

163

97

prices have not only caught up but seem to have exceeded a level
us would represent a complete discounting of the economic
events that have occurred in the last decade. This is suggested by

1953

142

94

120

108

170

102

1954—__

147

98

118

108

173

106

1955

153

102

118

106

180

108

1956

159

106

118

106

187

112

1957

165

110

116

104

191

114

1958

172

114

114

102

196

116

199.

118

207

123

1950

be different from

stocks must necessarily

common

still relatively low.

when prices were

that justified

which to

representative group of industrial stocks such as is
included in the Dow-Jones Industrial Average or in Standard &
Poor's Index of 50 Industrial Stocks yields less than 4%. When¬
the fact that

a

reduced to much below 4% dur¬
of common stocks seem on
the high side and appear vulnerable to adverse economic and
political changes that may occur and usually do so unexpectedly.
This raises the question of the degree of risk at this level of
common stock prices which we will
attempt to measure in this
article. To do so, it is necessary to make certain simple assump¬
tions: namely, that (1) in the next few years we will not be en¬
gulfed in the calamity of a third world war; (2) we will enioy at
least a continued normal rate of growth of our manufacturing
industries equal to that which prevailed over many decades' in the
past; (3) productivity will continue to rise and may make up for
lost time by gaining at a rate faster than normal; (4) wage rates
will remain relatively high and inflexible even during periods of
business decline; and (5) further advances in wage rates, including
fringe benefits, are likely to take place.
lUnder these assumptions we obtain the following normal trend
of the Federal Reserve Board Index of Manufactures and of the
commodity price level. We also show an index of value of manu¬
factures which is nothing more than the Federal Reserve Board
Index of Manufactures adjusted for commodity prices:
yields of common stocks are

ever

ing

period of active business, prices

a

1959

178

118

112

I960—

185

123

112

100

If
I lUUb

prosperity, we obtain the

Cyclical Swings in

Output

Index of Mfrs.

Per Man

1(H))

30.00

13.80

15.20

68.00

19.70

13.30

1951

34.00

37.10

31.90

36.00

19.10

15.90

1952

70.00

1953

72.00

40.30

1954

74.00

34.80

ucts & Foods

104

Ill

1951.

Ill

112

120

107

112

124

115

126

109

113

130

120

133

HI

115

138

125:

123

135

110

112

140

130

130

142

109

112

146

135

135

147

109

112

151

140

140

150

107

110

154

145

152

105

108

157

115

120

1954...

-

1955—
1956—

__

1957—

„

...

-

145

1958...
1959—

151

I960—

157

next few years,
can

35.70

39.30

40.00

18.80

20.20

35.10

41.90

42.00

18.90

22.10

1957

80.00

36.00

43.00

43.00

19.30

1958

82.00

36.90

44.10

44.00

19.80

45.30

45.00

20.20

23.80

46.30

46.00

20.70

24.30

the

per

and

share

1950.
1951.

$44.40

_

1953.
1954.
1955.
1956.
1957.
1958.
1959.
I960.

58

49.60

_

_

_

_

_

_

_

_

24.8

546

12.3

nouff

409

271

18..6

413

23.0

552

11.5

276

First

17.2

421

21.6

562

11.1

289

conduct

16.2
15.2

426

20.3

568

10.1,:

283

30

14.4

432

19.2

32

13.6

435

18.1

34

13.0

442

443

588

8.6

590

8.2

15.8

600

7.8

296

600

7.5

300

40

11.3

452

15.0

42

11.0

,462

*

302

304

$20.40

616

6.7

308.

28.80

19.80

258

10.0

13.4

1

46

460

20.80

1

23.40

304

55.20

56

23.40

304

56.00

47

26.30

29.70

1

28.70

373

58.40

47

27.40

31.00

1

30.00

390

60.40

45

27.20

33.20

1

32.20

419

61.60

45

27.70

33.90

1

32.90

428

1

33.50

435

1

34.90

453

62.80

45

28.30

34.50

65.20

45

29.30

35.90

1

37.40

30.60

36.40

.

473

earnings per share of the
Industrial Average during the period 1956 to 1960
shows that (he average

possible to approach this problem from a somewhat dif¬
We can make certain assumptions as to the volume
business and commodity prices during periods of depression and
It is

during periods of prosperity

in future years, and we can estimate
these assumed conditions and

earnings and dividends under

Dow-Jones Industrial Average which may

be expected.

as

a

half of the

than

downside percentage potential. These odds will
attractiveness with any further rise in stock

rapidly in

prices.

Bache Office

To Manage

GREENSBORO, N. C

—

Bache &

of the New York
Stock Exchange and other lead¬
ing
stock
and commodity ex¬
changes,
have
announced that
Archie B. Joyner has been named
manager of
the firm's office at
108 West Market Street, and that
W.
Gordon
Latham
has been
Co.,

members

named
men

associate

have

manager.

New York Stock

of

one-third

in volume

that commodity prices
might be moderately above and below normal under these differing

level),

and

conditions.

similarly we might

assume

With these assumptions we




obtain the following figures

Roy

'

(Special to The Financial Chronicle)

.

Joseph

V/.

Page, Raymond W. Bonin and

Ed¬

BOSTON,
ward
B.

Mass.

Goodbar

L.

&

Morton

C.

—

are

now

with

Co.,

131

State

Street.

Blair Adds To Staff
(Special to The Financial Chronicle)

DETROIT, Mich.—Ray E. Flynn
the staff of Blair

has been added to
&

Incorporated.

Co.

viously
&

with

He was pre¬

Campbell, McCarty

Co.'

Colo.—Dale R. Hill
conducting a se¬
curities business from offices at
The New York Stock Exchange 1305 East Tenth Street.
Officers
has announced that the following are Dale R. Hill, President; John
transfers of membership will be E. Hill, Vice-President; and Leslie
considered on Aug. 25: Frank L. F. Davis, Secretary-Treasurer.
Foreman to Albert L. Key; mem¬

Weekly Firm Changes

Joins Keller Bros.
(Special to The Financial

Chronicle)

Mass.—Ida K. Levy
has become affiliated with Keller
Brothers
Securities
Co.,
Zero
BOSTON,

Court Street.

Miss Levy was for¬

merly with Waddell

of

bership

the

late

Willard

Armour

& Reed, Inc.

been

Inv. Co. Formed

CITY, Utah—Ar¬
Investment Company has

SALT

LAKE

formed with offices at

Avenue to
securities business.

Simpson
John
V.
Don

P.

engage

2549
in a

Reeves,

Officers are
President; Ivan

Jr.,

Vice-President;

Walton,

Roland,

Secretary;

Vaughn H. Duffin, Treasurer.

PUEBLO,

Company is

and

A.

Lynch to Albert H. Mclntyre; and
Solomon Litt to James D. Litt.

of years.

"

Exchange

Both

associated with
office for a num¬

been

the Greensboro

business during a period
normal and during a

20% above normal (this means a drop
of business from a high level to a ,low

and

Form D. R. Hill Co.

depression is at least 20% below

period of future prosperity

••

L.

a

diminish

ber

might assume that the volume of

future

_

Three With B. C. Morton
:

the Dow-Jones

mour

of

;

that the low of

recent high of 475,

.

—

D.
to the
staff of McCleary & Co., Inc., 556
Central Avenue, members of the
New York Stock Exchange.
Livingston

Wesley

during coming years is likely
high is likely to be not much

the

Fla.

Neal, Jr. have been added

Industrial Average
was within approximately 25% of the 600 level which we regard
very high level and almost 60% above the level which we
would regard as very low.
In other words, at the present time
t:,e upside percentage potential in the market seems to be less
At

a

Bank

PETERSBURG,

ST.

the Dow-Jones Industrial
to be not much below 300
and the
above 600. These figures
are very close to those obtained from the use of the more simple
and direct method of approach used above.
All these assumptions leave out extreme cases of violent eco¬
nomic disturbances arising from major wars or depressions.
table shows

This

Average

offices in the
Building to
securities business.
opened

Two With McCleary

295

448

has

National

(Special to The Financial Chronicle)

292

6.9

ferent angle.

We

J

73

1

thereby the level of the

17.3
16.4

612

be $34.00, and that if one is willing to
apply a times-earnings of 13 (which is conservative), then the
normal level of the Dow-Jones Industrial Average during that
five-year period is estimated to be 442. If with varying conditions
of business, earnings, and dividends from periods of depression to
prosperity the Dow-Jones Industrial Average ranges 100% from
the low to the high (unless there are great underlying changes,
this seems a reasonable supposition), then the low point in the
Average during the next several years should be somewhat below
300 and the high point would be almost 600.

the

285

288

605

(five years) is estimated to

of

:

9.5
9.0

13.9

24.40

Dow-Jones

12.3

11.8

576
579

'

14.4

24.40

(Special to The Financial Chronicle)

OMAHA, Neb.—George O. Ka¬

22

458

27.60

45

DJI Avge.

10.4

30.80

~

table

This

Com.)

Earn. No.

44

V

_

68.00

_

x

for

DJI Avge.

$20

Net

(18

Times

Times
Earn. No.

299

Pfd. Divds.

53

52:00

1952.

Net for

Common

George O. Kanouff Opens

Low Level

$23.00

Taxes

Shepard & Co., Inc.; Shilli.nglaw,
Bolger
&
Co.;
Stein Bros. Se
Boyce;
Straus,
Blosser &
Mc¬

.

.

$1

Ind. Avge.

& Co.; Robert W. Baird &
Carolina
Securities Corp.;
Courts & Co.; Goodbody & Co.)
The
Milwaukee
Co.;
Prescott,

Co.;

$260

36

Lehman

Weeks;

Webber, Jackson & Curtis; White,

13.0

38

such

Weld

$24.00

Dow-Jones

46%

Pfd.

Divds.

Net Before

Fed.

share and

$536

Level

&

Hornblower

26.8

Normal

of

Bros.; F. S. Moseley & Co.; Paine.

$400

■

offering

Earnings

of

High Level

—

DJI Age.

in each year since

public
1936.

20.0

Price Level)

on

Levels

Various

cents

Dowell; and Walston & Co.

Industrial Average

Low

Times
Earn. No.

Earn./sh.

the level of stock prices which one might consider

> Before Taxes

and

30

Among those associated in the
underwriting with F. Eberstadt &
Co. are: A. G. Becker & Co., Inc.;

earnings:

High

28

(Earnings

stock in

to

Regular
quarterly
been paid on the

have

stock

first

the

stock

common

share.

common

23.20

when earnings are above normal, we obtain
for the Dow-Jones Industrial Average at

Dow-Jones

26

Yearly Rate

"•

figures

following

its

per

earnings for the

of the low

average

1956 to 1960 may be about $22 or $23 a
the high earnings about $44 a share.

varying levels of

170

Fed. Tax

■

the

that

fw

company yesterday
(Aug.
raised its quarterly dividend

dividends

Dow-Jones

Trend

Range

'Long

receivable

The

17)

Average."

shows

normal times-earnings

24

Average

under

shown

as

ac¬

nancing.

the principle that the Dow-Jones Indus¬
trial Average tends to sell at higher than normal times-earnings
during periods when earnings are below normal and at lower than

Long Range Trend

\

assumed

Rates

.

has been

substantial volume of

a

accounts

general

Finally, if we apply

represent the nor¬

Rate

38.70

86.00

business and the price level during the

Industrial

37.70

developed

22.70
;

;

founded

was

tively engaged in factoring and,
in addition, in recent years has

on

76.00

be estimated as follows:

Dow-Jones

19.70

five-year period

163

108

105

160

153

108

105

156

149

figures should even approximately

If these

15.70

18.30

Normal Level

mal trend of the volume of

normal

-•

21.30

78.00

the average of

99

-

38.00
39.00

1956

This

Value of Mfrs.

110

-

30.70
38.20

1955

84.00

of

$1,500,000

Since the business

share

per

33.60

1959

Index of

Farm Prod-

112

1953—.

sh. (1)

per

27.60

'

of

in 1854, the company

Earn,

Taxes

Taxes

29.40

•

investors

414% subordinated notes, due Oct.

Federal

before

sh.

per

39.40

Industrial

107

1952—

Co. for the

—Low

Earn./sh.

I

sh. (1)

Talcott, Inc. has also ar¬

through F. Eberstadt &.
private sale to institu¬

ranged

Industrial
Average
Level-

64.00

1950

"Normal"

1950—
..

James

1,. 1964 to 1970.

'Earn.

Taxes

per

the

of business.

ume

pe

and permit
company's vol¬

resources

increase in

an

Prices All

Comm. Except

<ID47-4D: ; UW)

Hour-

Federal

Taxes

(1)

Cost

Earnings

company's

tional

-High Level—
before

The

share.

per

following high and low level of earnings

Earnings of the Dow-Jones

Earn./sh.

'Normal" Comm.

Labor

Hourly

by F. Eberstadt &
is priced at $22.50
shares are being
sold by the company,
which is
among the leading factoring and
commercial financing concerns in
the United States, to expand the

group headed
Co. The stock

uiun UV/XAHMX

iaa^lj^A.

100,000 shares
James Tal¬

of

Inc. is being made today
18) by an underwriting

cott,

Dow-Jones Industrial Average:

for the

1960

Unit

Average

Normal
Volume FRB

UUSIUCia anu

IV W

UJL

during

stock

common

(Aug.

allow for lower than normal profit margins

we

Price Level

Industry

High

100

Long Range Trend
American

33

(697)

Financial Chronicle

and

Hugh C. Harle
Hugh Coffin Harle passed away
Aug. 9 at the age of 73.
Prior to
his retirement he conducted his

investment firm in New York

own

and

City

was

bott, Proctor &

a

partner in Ab¬

Paine.

John V. Huff Opens
(Special to The Financial

JACKSONVILLE,
V. Huff is

C.—John

engaging in a securities

business from offices
wood

Chronicle)
N.

Avenue.

at 407 Brent¬
r'

34

(698)

The Commercial and Financial Chronicle

Continued

from

page

number

5

The State oi Trade and
placed at 1,474,000

was

1954

based

are

toi'is,

annual

on

or

61.8%.

Industry

The percentage figures

capacity of 124,330,410 tons

of Jan.

as

1954.

cost

flour, wheat,

were

oil and
The

1,
31

index represents the sum total of the
meats in

foodstuffs and

raw

general

price

of

per pound

■

more

Wholesale Commodity Price Index Moved Irregularly

the wise

and farsceing executive of
today is
possibilities of his business by a study of
the births and mortalities
expected by the findings that insurance

The Past Week

gauging the expansion

actuarial pronouncements

After trending upward in the early part of the
week, the daily
wholesale commodity price index, compiled by Dun &

issue from

time to- time. The
following
interesting information was'released early this month:
Chances of living to age 100 are twice as
good now as they
were only
half-a-century ago, says the family economics bureau
of Northwestern National Life
Insurance Company of
Minneapolis,

Inc., turned lower to finish at 275.18
with

nearly 20,000,000 babies born in the past five
years,
80,000 should live to be 100 years old. Out of an
equal number
in the early
1900s, however, only about 40,000 would be

population living today, approxi¬
mately 500,000 will live to be 100, the insurance statisticians cal¬
culate, on the basis of present trends. Out of each
100,000 babies
each

2050

total of 200

a

100,000

born

should

in

1950

survive

to

see

the

appioximately 400

2000.
should live
year

as

compared

23,500,000

over

to

over

only 8,000,000 in 1920.

The amount of electric
energy distributed by the electric light
power industry for the week ended
Saturday, Aug. 13, 1955,
estimated at 10,729,000,000 kwh.
The previous high level at
10,925,000,000 kwh. was attained in the preceding week,
according
to the Edison Electric Institute.
week's

weaken

196,000,000 kwh. above that of
when the actual output stood at 10,925,000,000

correspond¬

ing week; in 1953.

under pressure

Both

Loadings for the week ended Aug 6, 1955, totaled
765,452 cars,
increase of 97,860 cars, or 14.7% above the
corresponding 1954
week, but a decrease of 19,897 cars or 2.5% below the

of

Trade

was

ago.

year

week.

raw

and

refined

with

112,897 bags

a

Brazilian

prices

sugar

producing

areas.

unchanged for the
lard showed considerable improvement in late

Demand for

trading and
1

were

prices

turned upward for the first time
for hogs and pork was stimulated
by
of cooler weather.

weeks.

Demand

in

several

the return

S. Automotive Output Last Week
Increased 6 6%
Bringing Total 1955 Output Up to 5,200,000 Cars

According to "Ward's Automotive Reports" for latest week
ending Aug. 1^, don^stic <*yto plants built
their^S,200,000th and
their dealers sold the
4,500,000th passenger car of the year in that
as factory output moved
up 6.6% over the previous week.

period

However, weekly operations
turn

that

will

Spot cotton prices trended lower during the past week under
pressure of liquidation and hedge selling prior to, the
publication

next week

are

headed for

tember.

"Ward's Automotive Reports" counted
151,176 car and 24,448
truck completions for U. S.
plants this week compared with
141,778
and 22,669 iast week. Car
output alone improved 6.6%.
This combined total of
175,624 increased 6.8% over last
week,
"Ward's" said, and was 51% above
the 116,193 last
year at this time,
the

gain stemming principally from the return
of cooler weather
plants.
>
'
Canadian output last week was
placed at 2,074 cars and 611
trucks.
In the previous week
Dominion plants built
6,035 cars
and 864
trucks, and for the comparable 1954 week 2553
cars and
to the auto

462

trucks.

j

Business Failures Down
Commercial
ended Aug. 11

and

from

Bradstreet, Inc. At
considerably below

industrial
213

in

the

failures

fell

to

169

in

the

week

so

far this year, failures

were

last year when 233 occurred but
slightly above
Failures remained one-third
lower than the pre¬
level of 252 in 1939.

Failures with liabilities of $5,000 or
more declined to
139 from
175 in the previous week and
185 in the
comparable week a year
ago. A decrease also
appeared among small failures, those
involv¬
ing liabilities under $5,000, which
dipped to 30 from 38 last week
and 48 in 1954.
Nineteen businesses failed
with liabilities in
excess of
$100,000 as against 13 a week ago.
Most of the week's decline
ocurred in retail
trade, where the
toll dropped to 77 from
108, and in construction, down to 19
from
34.

Also, wholesaling failures dipped
slightly to 25 from 28, while
casualties in
manufacturing edged up to 31 from 29 and in com¬

mercial service to 17 from
14.
last year, but all other
lines

Notably sharp declines from
facturing and retailing.

•

'

More wholesalers
succumbed
had fewer failures than in

a

year

ago prevailed

in

both

than
1954.

manu¬

Wholesale Food Price Index Holds to
Moderate Uptrend
^
.

In

Latest Week

Rising moderately for the
sale food price

$6.24
index

on

second successive

private estimates, and only
actual yield of 13,696,000 bales.

Reported sales in the

index, compiled by Dun &
Bradstreet, Inc., went to
Aug. 9, from $6.21 the week before.
Two weeks ago the
a
two and a half
year low of $6.17.
The current

touched




14

968,000 bales below

last

year's

funded

debt

being

debentures

by

the
with

used

for

purposes.

redeemable

are

1971.

A

sinking fund commencing

1956

will

bentures

operate

continued to increase and

totalled 72,300 bales, as against 69,400 bales in the
previous week.
mid-July parity price for cotton was reported at 35.22 cents

compared with 35.34 cents

Trade

to

retire

A Year

6

to

week

advanced

6

Ago the Past Week
to

10%

par.

June 30, 1955 were

divided approximately as follows:
containers, 24%; home appliances,
including water heaters, clothes
dryers, water softeners and heat¬
ing
and
air-conditioning
units,

32%; automotive parts, 13%; and
U. S. Government products, in¬
cluding
aircraft
components,
guided missile components
and
parts, shells and
other

ordinance

For the five

shell

cases,

items.

the period

higher than

a

ended Wednesday
year

ago,

and

31%.

months ended May

31, 1955 the company reported net
of $67,504,807 and net earn¬
ings, after preferred dividends, of
$2,469,163.
For the
comparable
sales

1954

five-month

period net sales
$77,834,724 and net earnings
$2,437,645.
were

Giving effect to the current of¬
fering, capitalization to be out¬
standing will consist of: $25,000,000 in funded debt;

35.408

shares

of

preferred

offering

value

par

stock;

and
1,619,140 shares of

approximately
common

approximately

$100

stock, $1 par value.
those associated in

Kuhn,

are:

Loeb

the

&

Co.;
The First Boston Corp.; Goldman,
Sachs & Co.; Harriman Ripley ,&
La-

zard Freres & Co.; Lehman Broth¬
ers;

Merrill

ner

&

Lynch,

Beane;

Pierce, FenSmith, Barney &
Webster Secu rities

Securities
Corp.;
Witter
&
Co.; Hemphill,
Noyes
&
Co.;
Hornblower
&
Weeks;
F.
S.
Moseley &
Co.;
Paine, Webber, Jackson & Curtis;
W. E. Hutton & Co., and SchwaDean

10% Above Like Period

Dollar volume of retail trade in
of last

at

year

The company's sales for the six

Co.; Stone &
Corp.;
Union

month earlier.

a

Volume Rose

each

Co.; Kidder, Peabody & Co.;

markets

The

Dun &

Bradstreet, Inc., reports.

bacher

&

Co.

.

Shopping in downtown areas was reduced by the hot weather
but substantial gains continued to be made at
suburban stores.
the

With Fulton, Reid

Regional estimates varied from the comparable 1954 levels
by

folllowing percentages: New England, up 4 to 8; East, up 4 to 9;
South, up 7 toll; Middle West and Southwest, up 8 to
12; North¬
west, up 2 to 6 and Pacific Coast, up 6 to 10.
While the response to traditional
August furniture sales varied
considerably, the overall volume remained above a year" ago.

Interest in air conditioners surpassed that in other
appliances
and automobile parts and
repairs were also in large demand.

CLEVELAND,
F. Berlin is

lines wholesale inventories

were

higher than in previ¬

Heavy trading continued in the fall apparel market, with
children's school clothes and women's fall coats
among the best
sellers.
Orders were far above those of last
year.

members

an

increase of 10%

Aug. 6, 1955,

a

was

recorded.

gain of 7%

was

For

the period Jan. 1, 1955 to
registered above that of 1954.

KANSAS
D.

well

below

Store

executives

estimated

the

decline

for

the

nine

stores, compared with the 10 in operation at the

|
major

same time last year.
blamed for the sales decrease. Last week's
storms and the threat of hurricane winds
kept store traffic down.
The previous week had seen the
stores vacated because of the
heat,
but last week's coler
temperatures were of no value to merchants
because they brought inclement weather.

The weather

Merrill

&

ner

Stock

is

now

L-'mch.

—

William

connected

Pierce.

Fen-

Beane, 1003 Walnut Street.

John P. Witt Ad 3s
(Special to The Financial Chronicle)

CLEVELAND, Ohio
B.

MacAllister

P.

Witt

&

Co.,

is

now

Union

—

Virginia

with

John

Commerce

Building, members of the Midwest
Stock

Exchange.

King Merritt Adds
(Special to The Financial Chuonicle)

Brooklyn

dropped

Building,

Midwest

CITY, Mo.

Robertson

1955 dropped 4% below that of the like
period of last year.
New York and

week.

the

With Merrill Lynch

According to the Federal Reserve Board's index, department
store sales in New York
City for the weekly period ended Aug. 6,
department store sales last week
year-ago levels lor the second consecutive

of

Thomas

(Special to The Financial Chronicle)

Department store sales on a country-wide basis as taken from
the Federal Reserve Board's index for the
week ended Aug. 6, 1955,
advanced 5% from the like
period of last year.
In the preceding
week, July 30, 1955, a rise of 13% was registered from that of the
similar period of
1954, while for the four weeks ended Aug. 6, 1955,

—

Exchange.

was a moderate increase in wholesale
orders during the
While the rise in dollar volume of trade was
slight, volume
remained higher than last year.
some

Ohio

with Fulton, Reid

now

& Co., Union Commerce

There

weeks.

|

(Special to The Financial Chp.onccle)

week.

In the

week, the whole¬

used

approximately

at prices ranging from 102% after'
Aug. 1, 1955 to 100% after Aug. 1,

with

preceding week, reported Dun &

the lowest level

a

recent

ous

.the 150 in 1953.
war

8, forecast

In

Sharply

be

corporate

Among

issued by the Department of Agriculture on Aug.
crop of 12,728,000 bales.
This was considerably above

down¬

a

The

of the first official crop estimate.

continue

through September and into October as
additional car producers
swing into model changeovers.
Joining DeSoto, Chrysler and Lincoln in model
changeover
shutdowns, "Ward's" said, are American Motors with its
Rambler
series, plus Dodge. Following shortly thereafter will
be certain
Mercury plants in staggered sequence, plus
Ford, then Plymouth,
With G. M. Corp. divisions
following at various stages in Sep¬

in

remainder

convertible

The report,

U.

$14,000,000
general

of hedging and

despite recent frost damage in

Week But Advance

an

Board

Following the sharp advance of last week, coffee prices turned
downward, influenced by the Department of Agriculture forecast
that coffee supplies this season and in the future will
be plentiful,

14.7% Above Like Week in 1954
Loadings of revenue freight for the week ended Aug. 6,
1955,
decreased 30,319 cars or 3.8% below the
preceding week, according
to the Association of American Railroads.

a

Chicago

Daily average purchases totalled about
40,100,000 last week, and 52,000,000

against

bushels,

the

on

year ago.

1,733,000,000 kwh., or 19.3% above the compar¬
2,215,000,000 kwh. over the like week in 1953.

Loadings Fall 3.8% Under Prior

futures

bags, from 258,229 last week and compared

able 1954 week and

Car

soybean

trade selling and reports
that United States importers bought cocoa from Brazil
as low as
28% cents a pound.
Warehouse stocks of cocoa declined to 249,900

output decreased

the previous week,
It increased

kwh.

and

active the past week.

good potential
demand existed for Spring wheat
bakery flours but the expand¬
ing harvest and gradually declining prices have encouraged a wait¬
ing policy among bakers and jobbers.
Cocoa values continued to

was

will

to retire

months ended

1.

Domestic flour business remained
very dull.
Most users of
hard and soft Winter wheat flours held fair to
large balances and
little activity was looked for in the near future.
A

and

Proceeds
company

in

bushels in the like week

a

Manufac¬

Government estimate of July

47,300,000

By 1960 there will be

New All-Time High Record
For the Fourth Consecutive Week

This

wide section

a

Rheem

$900,000 principal amount of de¬

more

the mark.

Electric Output Scores

over

of

20-year

sinking fund
3%% debentures due Aug. 1,1975
at
a
price of 98.25%
to
yield
slightly more than 4% to ma¬
turity.

the

held

fairly firm during most of th£
sharp reaction as the week ended.

a

$25,000,000
turing Co.

Harvesting of Spring wheat was progressing rapidly and one
private forecaster estimated production of all wheat for this year
at 926,000,000 bushels, or about 66,000,000 busheh more than the

grain

60 years of age is steadily on
persons in the United States are past

60

corresponding

The general quality of the new
crop Spring wheat is expected to be good to excellent.
Trading in

A.D.

This country's population
the climb. Today
18,500,000

the

on

hot, dry weather.

Of the total white American

1900,

Bradstreet,
This compared

Aug. 9.

on

272.59

Heavy selling, induced by week-end rains

expected to reach the 100-mark.

in

with

of the Midwest, resulted in sharp declines for all grains and wiped
out most of the advances of the past few weeks due to the recent

born

until

markets

the

of

and

'

Leading grain
week, but suffered

Of

born

week earlier

a

date last year.

Minn.

But

275.31

Blyth & Co., Inc. heads an un¬
derwriting group offering public¬
ly today
(Aug. 18) an issue of

and

use

Will You Live To Be 100 Years Old?
More and

Rheem Mfg. Debs*

oats, barley, sugar coffee, cotton¬

corn, rye,

cocoa.

its chief function
is to show the general trend of food prices at the wholesale level.

4

Blyfh Group Offers

year ago, or a

seed

lor

Thursday, August 18, 1955

.

at

$6.24, compares with $7.10 on the corresponding date
drop of 12.1%.
Commodities quoted higher last week included hams, bellies,
lard, butter, eggs, steers, hogs and lambs.
Lower in wholesale
a

.

.

'

SPRINGFIELD, Mo. —Herman
A. Teague has been added to the
staff

of

King Merritt & Co., Inc.*
Building.

Woodruff

was

preceding week, July 30, 1955,

from that of the previous week.

rise of 10%

was

noted

For the four weeks ended Aug. 6,
For the period Jan. 1, 1955, to

1955, an increase of 4% occurred.
Aug. 6, 1955, the index recorded

corresponding period of 1954.

a

a

rise

of

2%

from

that

of

the

With Benj. D. Bartlett
(Special to The Financial Chhonicle)

CINCINNATI, Ohio
Palm has

become

—

Otto

associated

J.

with

Benj. D. Bartlett & Co., 313 Vine
Street, members of the New York
and

Cincinnati

Stock

Exchanges.

Number 5456

Volume 132

Continued

from

Makes

in a multiple
6.^113.28 was left uninvested. During the five-year period the
amount/invested in these ten stocks (including commissions) would
/-have increased in value 296% (after deducting selling commissions).
of

Comparison of Investment

(Figures Rounded to Nearest Dollar)

cf the mutual funds, and the newly established Tele¬
because of its specialized field at a time

television

Boeing

$24.32

was

Net

No.

Offering

Net

Cost

Proceeds

No.

Asset

Price

of

of

Asset

of

from

Value

11 Per Sh._

Shs.

Shares

Value

Shs.

Shs. Sold

Inv. Trust of Boston

$7.94

$8.68

115

$998

Pioneer

25.92

27.98

36

1,007

115
144
61

$2,014
1,706
1.639

Fund—

General

Portland

38%

25

985

86%

25

2,136

491/2

20

1,003

553/4

40

2,206

63

15

957

713/4

30

2,129

12%

80

1,025

381/2

80

3,050

Westinghouse Electric

33

30

1,003

801/2

30

2,390

Zenith

32

30

973

911/2

30

2,718

A

Totals

1,146

years

999
998
1.007
1,009
1,003
957

11.95
9.50
17.13

158
238
104
70
178
64

1.888
2,261
1.782
1 819
1,890
1,791

is shown below:

18.22

26.66

28.P2

35

Howard—

Televisdcn-Elec.
Investors

__

Tr.

10.34

11.27

89

27.68

29.92 '

32

.

25.98
10.62
27.99

The

profit which

'

Div. Income

11)50-U)54

Electric

General

Libby-Owens-Ford
R.

896

7,575

1,917

361

2278

1,151
1,203

383

1,533

242

1,445

1,171

373

1,545

2,024

456

2,480

1,387

315

1,702

1,746

465

2,211

$29,237

$4,846

$34,083

__

_

Cap:tal G^ins

Over

1050-11)54

Five Years

Capital

Securs. (Petroleum)
Eaten & Howard—
Group

Fidelity

Westinghouse Electric

Investors

Mass.

—

—

-

446

734

873

that

appears

an

been $581,

have

would

has opened a branch office at

524

Seventeenth Street under the

di¬

(or

in

14%) greater than income from the
capital growth would have been $21,-

275, or 267% greater.

1,620

775

386

1,161

argued that the author's hindsight in choosing
aircraft stocks to include in the comparison is responsible for

810

407

1,217

887
834

472
368

1,359
1.202

two
the

It may be

good showing of the listed stocks. However,
eliminated from both samples, the common

circumstances

Total Profit Over Five

$12,227

$4,265

$7,962

reasonable

BOSTON,
pany,

been

General Electric

Aircraft: Boeing Airplane Co.;

Douglas Aircraft Co., Inc.

(2)

Electrical Equipment: General

Electric Co.; Westinghouse

Robt. M. Work Retiring
Robert M. Work of the Chicago

office of Salomon Bros. & Hutzler

30,

1955.

Total

Boeing
Douglas

• ?

i

•

1,533

Pioneer

1,445

General

It is

Glass: Libby-Owens-Ford Glass

(5)

Television

Sets: Radio

Zenith

earned

nies)

mutual

best

Trust

ment

a

Only

alphabetical order, and shows the amount

invested in each stock.

Approximately $1,000 was invested in each of the ten companies
exact amount being determined as that figure closest to

—the

Clermont Cartwright, Chairman

Hill, Thompson & Co. Inc., has
been elected a director of Sunset

of

Oil

by

it was announced
Sterling, Sunset Presi¬
William H. Tietz has been

Company,

J.

dent.

D.

elected

Secretary

Sterling also announced.
Mr. Cartwright is President

Inc.

cf

director

Co.,
and

The

of

is a

N. J., and

Penn-Michigan

Van

of

Manufacturing Co.

Newark,

(Special to The Financial

MIAMI,

two

mutual funds earned as

stocks. In the first place, a

may

have been too short to

paid for the mutual fund

more

significant reason

Thelma

Eleanor

S.

added

to

A.

have

Watson

the

staff

Newman & Co.,

of

been

Frank

D.

Auken

Mfg.

Company,

Helms Manufacturing Co.




securities such

the common stocks oPlarge

the

answer

Armed

With Security

relying

Planning

profit,

(Special to The Financial Chronicle)

WEST

PALM

BEACH,

Fla.

—

W. Lee and
Theodor E. Weber have joined the

for those with

on

the

with

a

of

Security

Harvey Builoing.

Planning,

Inc.,

>

1 v

<

Don't sit back

i
•••

A

-

i.

selected

better perform¬
five-year period

a

bull market than unlisted, un¬
varying degrees by

would be held in

Apparently,
industries are
accumulated dollars—at least during a
funds or common stocks?

companies in expanding

the ability of large

small investor can

of general

economic trends, and

corporations to make a reasonable
well afford to establish his own
Give to

portfolio of common stocks.
RICHARD A.
1550

Ashland Avenue,

Evanston, 111.

August 15, 1955.

STRIKE BACK!

stock prices.

knowledge

Leo N. Cowan, Elmer

staff

>

mutual funds.

period of generally rising

Ingraham Bldg.

during

as

Shall I invest in mutual

Fla. —Charles

Connell,

✓v-V*V"V^

amortize properly the higher commis¬
shares. A second, and probably
is the fact that the shares of large listed

sions

many

O. McSmock and

Boz-

Western

much profit as the worst

undoubtedly account for the

of the individual

known

Chronicle}

United

total of $4,452 in profits.

ance

and Treasurer,

Mr.

Tungsten Alloy

D. Newman Adds

F.

Calif.—Geno

with

total of $4,523 in

companies perform better

Cartwright Director

now

Libbey-Owens-Ford and the two cement compa¬
profits—or more than the three
funds.
(Group Securities Petroleum Shares, Invest¬
of Boston and Television-Electronics Fund) which
a

Several factors

in

table lists these ten arbitrarily chosen stocks

three worst stocks

$5,009

is

stock selected!

Radio Corporation.
The following

—

;

profitwise, (i.e.

Co.; Corning Glass Works.

Corporation of America;

interesting to note that the

means

Calif.

Securities, Inc., 1419 Broadway.

873

Capital

Total

$19,371

OAKLAND,
zolo

$7,218

1,473
1,043

Cement

presently

and

(Special to The Financial Chronicle)

Eliminated

$1,620

Cement

—

1,161

(Petrolium)

Portl'd

earned

(4)

Invest.

Portland

Total

■

Cement Co.; Lehigh Portland

7,575

1,202
1,183

Trust of Boston

Group Sec.

,$8,818

——

Work is

vacation

in Los Angeles

With United Western

$1,359

1,096

Four Funds

Eliminated

Four Stocks

Mutual

-i—

Total

$14,712

—1—

Mr.

Manager

Funds

Howard Stock

&

1921, and

1,

terminal

to reside

Chemical

'

'

'

1,702
1,545

Westinghouse Electric.
Libby-Owens-Ford —

Electric Corporation.

Cement Co.

Eaton

Inc., 140 Federal Street, has
changed to Wall Street Man¬

1928, is retiring as of Sept.

Investors Trust-_

Mass.

firm

The

agement Corporation.

1,217

Founders

—

G. Pell & Com¬

Dec.

Fidelity

2,480
2,278
2,211

Mass.

of John H.

name

since

Six

Zenith

totally unac¬

man

(1)

Cement: General Portland

of

direction

since

Television-Electronics-

$4,496

R. C. A-

quainted with the stock market, and faced with the requirement
of selecting a portfolio of ten growth stocks might well have picked
two Jaige companies from each of the following five industries;'

(3)

the

stocks still have a

Years in Dollars

Six Stocks

Corning Glass

Genl.

a

under

if the extremes are

the following table:

profit advantage, as shown in

2 to 1

Lehigh
these

—
Mc¬
opened a

HAVEN, Fla.

Co., Inc. has

Now Wall St. Management

1,183

advertising campaigns.

Under

York
securities

New
a

George Mann.

investment of approximately $10,000

deciding which ten stocks to select from among

national

Street,
in

engage

branch office at 259 West Central

stocks

listed

ten

funds, while proceeds from

than

'

to

Avenue

would have earned $21,856 more for an
investor over a five-year period than an equivalent sum placed in
ten of the better mutual lunds. Dividend income from the stocks

these

the more
1,COO listed on the New York Stock Exchange at the end of
1949, a small investor would hdVe had certain public information
at his disposal. For example, the Berlin air-lift had been officially
terminated in July, and responsible national leaders were predicting a "cold war" likely to last for ten to twenty, years. It was
agreed by the leaders of all major political parties that the United
States armed forces must remain strong, and that world air suprerr.acy must be maintained, particularly in bomber aircraft. The
population of the country was increasing rapidly. The value of
constiuction contracts awarded in 37 states had reached an all-time
high in 1949, and television set production had increased fourfold
from January to November of 1949—to the accompaniment of large
In

formed

has

business.

on

Totals

Broad

50

City,

WINTER

357

Trust

at

Cleary &

294

—

-

Shore

C.

McCleary Opens Branch

889

Television-Electronics

of R.

name

Company.

rection of James Tweeddale.

1,263

Mutual

Founders

650
139

$1,473
1,043
1,096

$457
344

699

Chemical
General

Total Profit
Over Five Years

6,679

A

C.

It

Less

Boston $1,016

of

the firm

under

Honnold Branch

4,111

Lehigh Portland Cement

Total Profit

Purchase Costs

—

securities

DENVER, Colo.—Honnold & Co.

385

_

_

Totals

Divs. Plus

Sales Receipts

Trust

a

Harold C. Shore & Co. with offices

$8,818
4,496

Portland Cement

General

effect.

$970

Douglas

(Figures Rounded to Nearest Dollar)

Pioneer

Road

Harold

$7,848

Zenith

Investment

in

1950-1954

Profit From Ten Mutual Funds

.

Ark.—Rufus W.

engaging

business from offices at 5024 Club

Dollar)

Purchase Costs

Corning

have increased by 80% to
$17,936. The profit which would have been realized from sale of
the investment company shares is shown below—together with the
total income which would have been received from each invest¬
ment company during the five-year period.

'

is

Stocks 1950-1954

Sale Rec'pts Less

Company—

$9,974 invested in mutual funds would

Fi nd—

Polk

?

(Figures Rounded to Nearest

period the

shows that during the five-year

table

above

-

Forms R. W. Polk Co.

of $9,887 in listed common stocks

Profit From Ten Listed

$17,936

$9,974

—

The

Maury.

LITTLE ROCK,

during five

investor would have realized

an

from an original investment

Boeing
Totals

100

H. C. Shore Opens
♦Including New York Stock Exchange commissions now in effect.
tAfter deducting New York Stock Exchange commissions now in

18

Fidelity

securities business from offices

$39,124

$9,887

63.67

158
119
52

Obelgoner is conducting a
at

H.

non

W. Polk &

--

989

6.32

Mass.

2,776

1,007

8.39
19.38

&

7,757

60

18

5.81

Eaton

60

61

7.68

5,157

46%

16.22

Mutual—

$8,805

35

859

55.95

Grcuo Sec. (Petrol.)

120

148 y2

1,079

15.00

Founders

73%

1,046

15

Capital— 52.05

Chemical
General

v

$957

35

20

$17.51
11.85
26.87

_

40

291/2

Shares Sold Dec. 31, 1! 54

104 )

Shares Purchased Dec. HI,

V. H. Obelgoner Opens
HALLETTSVILLE, Tex. —Ver¬

423/8

-

Street.

31,11)54

23%

130

Main

Proceeds?

71

R. C.

(Figures Rounded to Nearest Dollar)

.

No.

Price

Cost*

Numbci

Electric

Portland-Libbey-Owens-Ford

1950-1954

of Ten Mutual Funds

in Value

•

Price

General

Lehigh

not invested.

Increase

_

Douglas

Approximately $1,000 was theoretically invested in each of the
ten funds, the exact amount being determined as that figures clos¬
est to $1,000 which wc uld buy an even number of shares. A total
of

_

_

Corning

being widely introduced.

was

Shs. Sold Dec

Shs. Purely Dec. HI, 1!)4!>

Company—

vision-Electronics Fund
when

WELLSVILLE, N. Y.—Frank E.
Randall is engaging in a securities
business
from
offices
at
99 Yz
North

Stocks 1950-1954

in Value of Ten Listed

Increase

Results of Mutual Funds and Stocks
and largest

F. E. Randall Opens

$1,000 which would buy an even number of shares

16

page

35

(699)

The Commercial and Financial Chronicle

..

.

HOUGHTON

AMERICAN CANCER

SOCIETY
X.

36

(700)

The Commercial and Financial Chronicle

The following statistical tabulations

Indications of Current

latest week

Business Activity
AMERICAN

IRON

AND

STEEL

Indicated steel operations

INSTITUTE:

Week

(percent of capacity)

.Aug. 21

Equivalent to—
Steel ingots
AMERICAN

Crude

and castings

PETROLEUM

oil

and

month ended
Month

Year

Week

Ago

Ago

$92.3

"89.4

91.0

on

61.8

Aug. 21

$2,228,000

"2,157,000

2,195,000

(bbls.

average

Aug.

(bbls.)

average

(in

(bbls.)—
______

of

short
of

120.758

12,052

66,555

4.441.780

4.840.721

4.218.474

4.575,594

28.043

36,613

195,261

228.514

193,200

9,110,000

*9,746,467

6,627,597

7,540,889

5,837,488

AMERICAN

6.639,500

6,615.500

6,596,900

6,153,450

Aug.

117,542.COO

7.577,000

7,646,000

6,744.000

Aug.

25,953.000

26,447,000

26.478.000

23,756,000

GAS

ASSOCIATION—For month of

June:

Total

therms 1

(M

gas

Natural

sales

gas

1.975,000

Manufactured

9,619,000

-Aug.
Stocks at refineries, bulk
terminals, in transit, in pipe linesFinished and unfinished gasoline
(bbls.) at—
—Aug.
Kerosene (bbls.) at
Aug.
Distillate fuel oil (bbls.) at
Aug.
Residual fuel oil (bbls.)
at
Aug.

7,146,000

Mixed

__•_

ENGINEERING

156,476.000

7,790,000

7,583,000

7,485.000
AMERICAN

157,005.000

159.307,000

156,808,000

32,4 75,000

32.000.000

30,456,000

32,539.000

5

119,479.000

115,936,000

105,167,000

105.077,000

5

45,273.000

4o,-to 7,000

45,304,000

55,238.000

Steel

U.

S.

Private

(number

of

cars)

CONSTRUCTION

of

(no.

Aug.

6

765.452

795,771

551,608

cars)—Aug.

574,367

(i

644.251

632,132

551,608

574,367

construction—

and

municipal

___

Federal
COAL

OUTPUT

Bituminous

(U.

coal

S.

BUREAU

and

lignite

Pennsylvania anthracite
DEPARTMENT STORE

SYSTEM—1947-49
EDISON

OF

AMERICAN
of

output

FAILURES

(tons)

—

(in

000

$578,407,000

$419,221.00C

191,204,000

371,880,000

268,697,000

Aug. 11

146,247,000

126,489,000

Benzol

206,527,000

Aug. 11

150,524.000

128,596,000-

111,666.000

Crude oil

132,778,000

133,893,000

Aug. 11

17,651.000

Refined

14,823,000

73,749,000

6

9,150.000

*9,650,000

7,390.000

7,499,000

Aug.

(j

456,000

5^4,000

345,000

4(2,000

Aug.

6

97

kwh.)_

Aug. 13

AND

INDUSTRIAL)

—

DUN

steel

(per gross

I

16,631,00l

98

87

Scrap steel

PRICES

Electrolytic

(E.

&

M.

J.

(New
(St.

(East

MOODY'S

York)
St.

at

PRICES

1

$43.33

$38.50

Aug- 10

35.700c

35.700c

35.700c

39.700c

Aug- 10

38.125c

39.050c

36.100c

29.550c

Aug. 10

96.625c

97.375c

95.125c

Aug. 10

93,375c

13.000c

15.000c

15.000c

14.000;

-Aug. 10

14.800c

14.800c

14.800c

13.8()0i

Additions

Aug. 10

12.500c

12.300c

12.500c

11.000c

Nonhousekceping

(tons)
of

short

sales

Customers'

other

sales

.*

FOR

ACCOUNT

Total round-lot

OF

Y.

66

62

52

41

39

48

25

24,

21

31

30

31

31

37

148

141

164

410

398

393

110.34

Religious

103.80

104.31

Educational

107.44

109.24

Social

108.70

109.24

111.07

Hospital and

108.88

109.79

111.81

108.52

2.86

2.46

3.29

3.27

3.24

3.1L

3.11

3.09

3.05

Aug. 16

2.86

3.19

3.18

3.14

3.02

3.28

3.27

3.23

Aug. 16

3.15

3.56

3.55

3.52

Aug. 16

3 4j

3.36

3.36

3.31

Aug. 16

3.25

3.24

3.21

-'Aug. 16

3.25

3.23

3.18

398.2

403.7

Aug.

6

367,978

281,121

405.7

225,732

277,574

278,376

280,062

155,704

98

245,341

99

55

91

691,068

602,944

r

416,80..

other

106.81

106.88

1,181,336

"1,294,989

1,245,014

1,160,703

July 23

$62,963,160

"$71,834,190

$65,549,131

$53,097,672

July 23
July 23

1,026,744

•1,015,706

1,175,826

1,156,234

6,740

*6,364

1,020,004

*1,009,342

$52,325,371

*$52,417,020

5,498
'

8.700

1,170,328

1,147,534

$58,842,561

$43,334,769

276,650

256.540

331,530

358.590

July 23

276,650

256,540

331,530

358,590

396,010

358.150

455,040

536,000

'
———

building

Hospital

nonresidential

facilities

Sewer

(SHARES):

——-——

water

other

—

public

Conservation

——

publicl—

July

As

BANK

30

of

Aug.

COTTON

sales
•

(DEPT. OF

PRODUCTION

500-lb.

AVERAGE

S.

DEPT.

16

12

1.141

1,169

21

23

24

392

394

420

62

69

130

225

221

189

32

33

34

73

71

67

115

113

90

460

410

440

99

99

89

29

26

25

60

59

57

17

17

14

$593,000

$572,000

$747,000

S.

DEPT.

as

of

ESTIMATE

312,984

388,229

12,728,000

13,679,000

OF

Aug.

1:

HOURS—WEEKLY

AND

of

—

bales

—

U.

S.

DEPT.

OFT

July:

Weekly Earnings—-

manufacturing

Durable

$75.76

—

goods

—

r

goods

—-

manufacturing

491,690

471,630

471.180

485.520

July 23
July 23

11,680,770

13,572,610

12,927,560

Hourly

11.955,320

12.152,406

14.043,790

13,413.080

All

goods

$76.11

81.40

82.19 '

67.89

67.83

40.3

40.7

$70.9.2
75.83

64.74

1,473,730

1,716.720

1,513.580

manufacturing

MOODY'S

goods

271,570

281,720

277,400

July 23

290,580

1.323,940

1.336,370

1,436,760

1,261,610

Industrials

1,595,310

1,618,090

1,714,160

1,552,190

Railroads

July 23

327,900

326,880

368,920

456,350

July 23
July 23

27,600

38,000

18,100

22.120

293,470

286,610

371,330

454.260

July 23

321,070

324,610

389,430

476.380

July 23

496.165

502,470

658,745

400,602

July 23
July 23

90,230

65,500

84,100

47.220

582,525

615,596

701,407

476,200

—

COMMON

Banks

AVERAGE

STOCKS—Month

(not incl.

Tel. & Tel.)

Amer.

39.7

39.9

39.0

$1.83

Insurance

(10)

(24)__

—

BANK

GREAT

IN

IN

681,096

785.507

523.420

2,744.385

July 23

2,370.532

389,400

385,220

379,600

July 23

359,920

2,119,935

2,238,576

2,509.497

July 23

2,192,070

2,589,335

Insurance companies
Bank and
trust
companies

2,623,786

2,889,097

2,551,990

Mutual

AREAS

U.

OF

S.

BOARD—Month

and

loan

HOME

—

of

Individuals

LOAN

July—

lending

1.66

3.63

3.71

4.54

4.77

4.66

5.95

4.34

4.53

4.56

3.95

4.01

4.35

2.45

2.40

2.73

3.78

3.87

4.61

£134,814,000

£23.921,000

£23,175,000

$950,000

BANK

omitted!:
—.—

1—
___

———

—

Miscellaneous

of

associations

savings banks

1.91

1.70

NON-FARM

(000's

May

$1.80

1.99

1.71

BRITAIN-

LTD.—Month

FINANCING

ESTATE

Savings

—

(2001

MIDLAND

$1.87

2.00

July:

—

2,303,080

Commodity Group—

of

(125)

672,755

OF

39.4

41.3

39.7

OF

(25)

2,370.545

100):

YIELD

(15)

Average

REAL

——

goods

WEIGHTED

July 23

t(>»

|

Earnings—

Non-durable

1,546,480

1

40.7

.

Non-durable goods

Durable

July 23
July 23

—

__—

July 23

sales

U.

Corp

gross

EARNINGS

U.

juiv 23

Total sales
—

16

1,193

COMMERCE) —

bales)

—

AGRICULTURE—1955
Production

11,463,630

account of members—

1

SERIES

58
305

YORK—

omitted)

(running

1

NEW

OF

(000's

NEW CAPITAL ISSUES

purchases
Short sales

=

30

60

308

OUTSTANDING—FED¬

PAPER

COTTON GINNING

July 23

initiated off the floor—

Total

(1947-49

service

enterprisesdevelopment

and

RESERVE

of

All

sales

NEW

building————

30

65

316

Hours—

Total sales

PRICES,

—

——-—<

and

Miscellaneous

All

TRANSACTIONS

Short sales

purchases
Short sales

,

institutional-

and

Highways

Utilities

Total

— —

______

Non-duable

the floor—

Total round-lot transactions for

i:———

building

LABOR—Month

STOCK

Total sales

—

Industrial

FACTORY

July 23
July 23

purchases

transactions

private

29

106.85

July 23

July 23

—

Educational

Military

29

telegraph—

utilities—

Nonresidential

As

July 23

and

construction

All

106.84

__—_————

————————————--

Residential

ERAL

sales

—

All

Public

—

—

public

COMMERCIAL

Short sales

WHOLESALE

642,257

institutional——

utilities

Other

426.3

6

recreational

construction

Railroad

3.11

:

__—

and

Telephone

3.07

6

Total sales

Other

3.21
.

6

Total

LABOR

2.84

building————

Miscellaneous

.

Public

2.90

Aug. 16

4

Other

nonresidential

103.30

TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND
SPECIALISTS:
Transactions of specialists in stocks in which
registered—
purchases

Other

Other

—————__—_

106.56

ROUND-LOT

Other

208

81

Total sales

Total

259

187

108.88

Commercial

Durable

on

276

125

110.52

108.16

~t

Other transactions initiated

153

186

109.79

107.98

sales

Other

189

194

109.60

Aug. 16

sales—

Short sales
Other

MEMBERS

N.

197

113

112.7..

Aug. 16

July 23
THE

551

90

Number of shares
ON

634

169

INDEX—

STOCK

29

667

(noniarm)

94

,

SALES

31

182

sales

ROUND-LOT

.33

buildings

purchases by dealers—

STOCK

134

loft

Short sales

EXCHANGE AND

1,125

135

garages——

Number of shares—Total sales

TOTAL ROUND-LOT

1,315

and

Dollar value

Other

1,267

1,365

T

ana

Round-lot sales by dealers—

Round-lot

1.480

(nonfarm)—

office

Aug. 12

Customers'

2,387

1,533

/

Warehouses,

Aug.

Od(L-tot purchases by dealers (customers'
sales)—
Number of orders—Customers' total Bales

$3,556

2,669

Stores, restaurants

100.42

Aug.

value

$.3,810

2,774

—

110.70

STOCK TRANSACTIONS FOR ODD-LOT
ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS
ON
N. Y.
STOCK
EXCHANGE — SECURITIES EXCHANGE
COMMISSION:
Odd-lot sales by dealers (customers'
purchases)—t
Dollar

$3,967

OF

millions):

115.82

95.34

—Aug.

Number of shares

45,581,000

$589,357,000

108.70

108.52

AVERAGE =100

84,964.000

$654,576,000

112.19

Other

PRICE

DEPT.

S.

(in

92,143,000

$647,636,000

-u

94.61

ASSOCIATION:

OIL, PAINT AND DRUG REPORTER

—

111.44

Aug. 16

activity
(tons) at end of period

18.072,000

108.16

Aug. 16

PAPERBOARD
Orders received (tons)

91,964,000

111.07

Aug. 16

INDEX

39,790,000

107.80

Farm

Group
Group

72,777,000

40,840,000

Aug. 1G

103.13

Utilities

112.377,000

Aug. 1G

106.56

Group

153.809.000

96,265,000

—__

95.17

Aug. 16

A

$225,154,000

12,467,000

alterations——

&

29,183,000

Aug. 10

Aug. 16

NATIONAL

New

222,951,000

15,929,000

188,662,000

construction

building
dwelling units

245.001.000

16,708,000

shipped between

July

Residential

246,348.000

$216,316,000

corstrumtion

Aug. 16

Baa

and

Nonresidential building
Industrial'

Aug. 16

COMMODITY

Private

9,200,000

11,401,000

———_—___

of

12,787.000

185,837,000

CONSTRUCTION—U,

new

22,000

21.957,000

12,222,000

$223,150,000

$27.8„

Total

65,000
20.901.000

———

Total

-Aug. 16

-

Percentage

counrties

$44.00

corporate-

Unfilled orders

goods stored

011

foreign

20,362,000

55,000

23,017,000

—.—————

_———T—.

—

9

Aa

Production

exchange

—Aug.

MOODY'S BOND YIELD DAILY AVERAGES:
U. 8. Government Bonds

Industrials

Dollar

$56.59

i

—

Group
Group

Industrials

1949

233

$59.09

Group

MOODY'S

224

200,593,000

20.571.000

BANK

credits—_—

$59.09

—

Utilities

Public

213

:

—-———

Domestic shipments
Domestic
warehouse

220,977.000

206.600,000

July 30:

_———

——

227.236,000

20,779,000

OUT¬

RESERVE

YORK—As of

NEW

227,817,000
206,983,000

export

———

ACCEPTANCES

$53.09

:

Railroad

1

DAILY AVERAGES:

A
-

(barrels.)—,—

9

at

corporate—.

Average
Aaa

169

and

—-——

stock

DOLLAR

BUILDING

at

:

1

all

BANKERS'

OF

(barrels)—
barrelsl__:

domestic

consumption

barrels

Aug.

Aa

Public

Indicated

Increase

4.801c

—

1

(barrels)

5.178c

;

(barrels of 42 gal¬

output

imports

5.174c

—

INSTITUTE—Month

output

5.174e

Aaa

Railroad

gasoline

9

U. S. Government Bonds

Baa

oil

Aug.

—

——

1

Louis)

BOND

Average

8,996,000

QUOTATIONS):

at

Louis)

7,770,213

.

__——

LABOR—Month

Export refinery at.
Straits tin (New York)

Zinc

10,440.000

copper—

Domestic refinery at—.—.—

Lead

**10,925,000

33,700

tons)—

(net

(barrels)—____——.
products imports (barrels_

Imports
Exports

&

____

(per gross ton)

•

crude

output

Based
—

ton)

Natural

92

PRICES:

lb.)

(per

10,729,000

Aug. H

COMPOSITE

Finished

Pig iron

...

products

STANDING—FEDERAL

AVERAGE =100

(COMMERCIAL

IRON AGE

Lead

$317,693,000

188,211,000

INDEX—FEDERAL RESERVE

BRADSTREET, INC

METAL

$334,458,000

Aug.

4,011,700

INSTITUTE:

June

each)

Aug. 11

1

S

—_—

4,238,600

A-

castings produced
July

PETROLEUM

Domestic

ELECTRIC INSTITUTE:

Electric

1

May:

Aug. 11

MINES):

(tons)

SALES

STEEL

for
of

steel

of

lons

construction

State

AND

and steel
of

Month

__—

therms)-——_

therms)..

(M

tons)—Month

Shipments

<M

Total domestic production

ENGINEERING

—

construction

Public

IRON

ingots

(net

NEWS-RECORD:
Total

sales

sales

gas

therms!

(M

gas

RAILROADS:

freight loaded

CIVIL

of

131,128

1,887,000

freight received from connections

Ago

in the U. S.
12,630

11,474,000

Re/enue

Month

127,634

2,217,000

Revenue

Year

Month

June—_______

11,008.000

(bbls.)

of that date:]

Previous

MINES):

tonsi—Month

2.094.000

output

OF

are as

Latest

aluminum (short tons) end of June

11,063,000

(bbls.)

of quotations,

cases

primary aluminum

Aug.

fuel oil

ASSOCIATION OF AMERICAN

*

(BUREAU

—Aug.

Residual

in

or,

either for the

are

of

———

Kerosene output (bbls.)
Distillate fuel oil output

ALUMINUM

Stocks

output—dally

Thursday, August 18, 1955

production and other figures for tha

cover

that date,

1,474,000

INSTITUTE:

condensate

output

or

Previous

..

Dates shown in first column

Production

(net tons)

42 gallons each)
Crude runs to stills—daily
Gasoline

week
Latest

month available.

or

.

institutions

$900,390

$674,939

163.472

165.247

123.503

482,212

455.960

330,171

152,643

135.603

285.911

276.283

231,372

448,573

423.649

326,668

$2,482,811

$2,357,132

$1,804,499

$277,625,547

$274,418,365

6.810.921

6,215,665

$271,004,530
4,224,495

$270,814,626

$268,202,700

117,845

'

Alt

commodities

Farm

Aug

products

Processed

foods

Meats

•Revised
of

figure.

Jan.

fNumber

of

1.

1!Includes
1955,

orders

1

«

J

*

as

not

)

f

110.3

110.2

*87.2

89.1

95.6

100.9

"101.9

103.0

105.2

other than farm and foods



*

"110.1

87.8

Aug.
.—

AU commodities

tans

110.1

.—Aug.

811,000

against

reported

barrels

Jan.

since

1,

81.5

81.4

86.8

88.6

116.7

"116.7

116.2

114.3

foreign

crude

runs.

basis

of

124,330.410

introduction

of

Monthly

§Based

on

new

annual

capacity

of

all-time

high

record.

of

July

>»?(••

»

V »

f

..

AND

omitted):

balances

__

annual

rate.
uj

i-1

DIRECT

31—

fund

debt

Computed

1

i.

DEBT

GUARANTEED— lOOOs
As

Net
Plan. f**New

GROSS

125,828,310

tons.

Investment

t
t

-

STATES

General

of

1954

Aug.
Aug.

Total

UNITED

t

»

v•*-.

•yi

'

if
'..A
'i.

t
i

.

$266,780,035
2.334%

2.351%

2.348%
•

T

»

■)

,

j

.

J

'

i

I

I f

;

1

jv-

,

l

it.r

:

1

W

~

fi i

Number 5456

Volume 182

..

.

ADDITIONS

★ INDICATES

Now in Registration

Securities
Academy

Uranium

Office—65 East Fourth South
St., Salt Lake City, Utah. Underwriter—Western States
Investment Co., same city.

and gas

Admiral Finance Corp., St.

Louis, Mo.

$513,182.50 of outstanding junior subordinated deben¬
tures, series B, and for expansion and working capital.
Underwriter — Paul C. Kimball & Co., Chicago, 111.
Admiral Finance Corp.,

(par 10 cents) to be offered in units of five preferred
and one common share.
Price — $50 per unit.

shares

Paul

—

Kimball

C.

&

Chicago, 111.

Co.,

•

of notification) 27,000 shares of 7% cumu¬
preferred stock (par $10) and 27,000 shares of
common stock
(par $1) to be offered in units of one
*hare of each class of stock. Price—$11 per unit. Pro¬
ceeds—For working capital, etc.
Office—206 No. Vir¬

•June 27 (letter

lative

Underwriter—Senderman & Co.,

ginia St., Reno, Nev.
address.

—$11 per unit. Proceeds—For construction of
related activities and for contingencies, stock

Price—To be supplied by amendment. Proceeds
—For working capital and expansion purposes.
Under¬
writer—Lehman Brothers, New York.
period.

hotel and
in trade,

working capital. Underwriter—None.
Copper Mines,

&

Uranium

stock.

American

($1

per

and

gas

ISSUE

Office—541
Underwriter—

activities.

American Asbestos

Co., Ltd. °

Feb. 17 (Regulation "D") 600,000 shares

ment

of common stock

cents per share.

50

—

purposes.

Proceeds—Fcr

Underwriter—Maine Invest¬

Co., Ltd.

if American Copper & Uranium Corp.
Aug. 2 (letter of notification) 800,000 snares of com¬
mon
stock.
Price—At par ($1 per share).
Proceeds—
For expenses incident to mining activities.
Office—710
S. 4th Street, Las Vegas, Nev. Underwriter—None.
Enka Corp.,

American

Enka, N. C.

July 28 filed 237,798 shares of common stock (par S5)
being offered for subscription by stockholders on the
basis of one new share for each 4.7 shares held as of

rights to expire on Aug. 30. Price—$46 per
facilities and improve¬
Underwriter—Harriman Ripley & Co. Inc., New

16;

Aug.

share. -Proceeds—For new plant
ments.

Processing Co., Atlanta, Ga.
shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For plant and equipment and other general corporate
purposes. Offices—743 E. Penn Street, Philadelphia, Pa.;
and 1131 Healey Building, Atlanta, Ga.
Underwriter-

Oil, Inc.
300,000 shares of capital
share). Proceeds—For ex-

Aug. 11 (letter of notification) 300,000

Securities Co., Atlanta,

Franklin

(letter of notification)
Price—At par

REVISED

if American Mica

Securities, Inc., Cliffside Park, N. J.
★ Amalgamated

ITEMS

York.

Inc.,

Montreal, Canada
July 22 (Regulation D) 1,000,000 shares of common stock.
Price—30 cents per share. Proceeds—For exploration and
development expenses, etc. Underwriter—Hudson-Bergen

Aug. 8

oil

to

PREVIOUS

None.

•

Aug. 8 filled 900,000 shares of common stock (par $1)
and 900,000 shares of preferred stock (par $10) to be
offered in units of one share of each class of stock. Price

Alouette

(9/1)
Aug. 10 filed $3,662,600 of convertible subordinated de¬
bentures due Sept. 1, 1970, to be offered first for sub*
scription by common stockholders in the ratio of $100
principal amount of debentures for each 16 shares of
stock held on or about Sept. 1; with a 16 day standby
Aldens, Inc., Chicago, III.

incident

SINCE

Spring Street, Los Angeles, Calif.

general corporate

Reno, Nev.

Allstates Credit Corp.,

and

Offering—Expected early in September.

South

;(par $1). .Price

Aloha, Inc., Las Vegas, Nev.

St. Louis, Mo.

July 29 filed 50,000 shares of 60-cent cumulative pre¬
ferred stock (par $5) and 10,000 shares of common stock

Underwriter

—

dress.

same

Offering—Expected early in September,

Office—1508 Capitol Ave., Houston,
Paul C. Ferguson & Co., same ad¬

operations.

Underwriter

Tex.

.

July 29 filed $1,000,000 of participating junior subordin¬
ated sinking fund debentures due Sept. 1, 1970.
Price
—At 100% of principal amount.
Proceeds — To retire

i

A

mining operations.

•

penses

(letter of notification) 300,000 shares of class
common stock.
Price—$1 per share. Proceeds—For oil

June 20

—For

Development Corp.

Allied Industrial

Corp.

Oil

&

June 10 (letter of notification) 15,000,000 shares of com¬
mon stock. Price—At par (one cent per share). Proceeds

37

(701).

The Commercial and Financial Chronicle

15 filed

Tune

Ga.

Natural Gas Co.

American

736,856 shares of common stock (par

$25)

being offered for subscription by common stockholders
on
the basis of one share for each five shares held on

ISSUE

NEW

Equip. Trust Ctfs.

(Bids

L

Common

259,419 shares

Richter Co.)

(Scherck,

$3,675,000

CDT)

noon

Day-Brite Lighting, Inc.__

(Bids

Debentures

Mississippi Valley Gas Co
(Offering

Securities

I

Bank of

(Offering

Securities Corp.) $600,000

stockholders—underwritten by Blyth &

to

Electric

California

(Bids

11:30

$67,000,000

EDTl

a.m.

Common

Light Co

Utah Power &

(Bids

noon

177,500 shares

EDT)

(Monday)

September 19

Telegraph Co.___.Debentures

Pacific Telephone &

$15,000,000

EDT)

230,000 shares

PDT)

a.m.

Common

Co

Power

9:30

(Bids

Bonds

Utah Power & Light Co...
noon

Lamson

$3,000,000

(McDonald & Co.)

(A.

Becker

G.

&

Co.

70,000 shares

Inc.)

Cromwell Uranium & Development
Inc.

Western

Great

Securities

Corp

Common

Brothers), 500,000

(Lehman

Debentures

Genung's,
(P. W.

Inc. and Blair & Co.

Brooks & Co.,

W.

Common
Inc. and Blair & Co.

$40,000,000

be invited)

(Offering

to

197,532 shares

stockholders)

Inc.) 25,000 shares

Telegraph
Common

Bonds

Electric Power Co

California

(Bids

9

a.m.

August 31
Pacific Telephone &
(Offering

to

PDTi

Public Service Electric & Gas Co
(Bids 11 a.m. EDT) $35,000,000

Common

Telegraph Co

stockholders—no underwriting)

$133,919,600

...Debentures

Cuba

Uranium,

Bonds
&

Barney & Co.

(Wednesday)

(Bids

invited)

be

October

Common

and William R. Staats & Co.)

September 2

$400,000

(Friday)

(Monday)

Hilo Electric Light Co., Ltd
^.Common
(Offering to stockholders—no underwriting) 25,000 shares

Housatonic Public Service Corp
(Offering to stockholders—no underwriting)

(Offering

&

Co.

Inc.

and

stockholders—bids

Common

(Wednesday)
Debentures

Warren

W.

York & Co., Inc.)$300,000

and Wairen W. York & Co.,




(Mo.)

Grocers' Co. of St. Louis

(letter of notification) 3,000 shares of common
par
($100 per share), in units of 12

Price—At

stock.

shares, no more, no less.

Proceeds

—

To reimburse treas¬
St. Louis 10, Mo.

Office—5030 Berthold Avenue,

Automatic

Inc.
shares of common stock (par 50

Remote Systems,

March 3 filed 540,000

Price—$3.75 per share. Proceeds—For manufac¬
Sending and Receiving Units, working
capital and general corporate purposes. Office—Balti¬
more. Md
Underwriter—Mitchell Securities, Inc., same

cents).

city.

of Teleac

Statement effective.

if Baker
stock

Laboratories, Inc., N. E.

Cleveland, Ohio

(letter of notification) 7,500 shares of
par) to be offered to officers and

(no

ployees. Price—$35 per share until Oct. 1,
which price will be book value per share as

Continued

common
key em¬

1955, after
determined

on page

38

November 29

11:30

a.m.

Preferred
$8,000,000

(Tuesday)

EDTt

$18,000,000

Bonds

New York

Boston

Philadelphia
December

6

Virginia Elec*r'c & Powpr

Inc.) 30,000 shs.

Tuesday)

Gas & Electric Co
(Bids

Bonds

11 a.m. EDT) 1,004,870

Arkansas Power & Light Co
(Eids to be invited)

$325,974

Eastern Lime Corp
(Stroud & Co. Inc.

National Life

Common
shares

Co.

to

San Diego

(Stroud

St., Phoenix, Ariz. Underwriter—First
Phoenix, same address.

Insurance Co. of

(Wednesday)

19

October 25 (

September 5

Eastern Lime Corp.

Phoenix, Ariz.

Amortibanc,

April 4 (letter of notification) 300,000 shares of com¬
stock, class A. Price—At par ($1 per share). Pro¬
ceeds—For working capital. Office—807 West Washing¬
mon

$8,500,000

State Electric & Gas Corp
(Bids to be invited) $25,000,000

New York

Southern

American Telephone & Telegraph Co._.Debentures
(Offering to stockholders—no underwriting) $650,000,000

September 7

,

Bonds

Electric Co

to

Inc.

of

(Tuesday)

October 18

County

Worcester

about Sept. 2.

or

$3,000,000

Co.)

(J. B.) Co., Inc

(Smith,

underwritten by The

be

195,312 shares

Pacific Power & Light Co
-Preferred
(Expected by local dealers) $3,000,000

and Shaiman & Co.) $1,250,000

(Republic of)
(Allen

Rea

by

Common

Inc.

Investing Corp.

Common

stockholders—may

First Boston Corp.)

on

Electronics,

(letter

9

July 29

to stockholders—underwritten
Lehman Bi others)
$3,662,600

(General

to

October 5

(Offering

Colohoma

(Offering

(Thursday)

Aldens, Inc.

Debentures

Telephone Corp

Rochester

each

notification) approximately 500,000
shares of common stock. Price—Approximately eight to
nine cents per share.
Proceeds — To D. E. Replogle,
President. Office—101 Hazel St., Paterson, N. J. Under¬
writer—McCoy & Willard, Boston, Mass.

ture

$6,000,000

(Wednesday)

September 1

(Tuesday)

October 4

basis of $100 of debentures for

Underwriter—None.

underwriting) $48,688,100

(Offering to stockholders—no

the

be mailed

to

Arcturus

ury.

Mountain States Telephone &

on

up

if Associated

(Saturday)

Co.

(Tuesday)

August 30

etc.

expire on Oct. 13, 1955. The
debentures are to be convertible into common stock be¬
ginning Dec. 13, 1955, at $148 per share, payable by sur¬
render of $100 of debentures and payment of $48 in
cash.
Price—At face amount.
Proceeds—For construc¬
tion program.
Underwriter—None.
Warrants—Rights

Aug. 4

—Bonds

Pacific Power & Light Co...
(Bids noon EDT) $10,000,000
October 1

$1).

(9/2)

Telephone & Telegraph Co.

filed

1955,

25,

ton

Common

Tampa Electric Co

Inc.) $1,000,000

Inc.

Brooks & Co.,

(Wednesday)
Inc
Debentures

System,

(Bids to

Texas

to $650,000,000 of 12-year 37/g% con¬
vertible debentures to be dated
Oct. 13, 1955 to be
offered for subscription by stockholders of record Aug.
2

Arizona

EDT) $22,000,006

a.m.

September 27 (Tuesday)

Genung's, Inc.
(P.

Gas

$19,500,000

(Friday)

August 26

Columbia

Bonds

EDT)

noon

Bonds
11

September 21

shares

St. Louis-San Francisco Ry.

$6,000,000

EDT)

a.m.

Co

Power

(Bids

Northwest Nitro-Chemicals, Ltd..Debs. & Common
(Eastman, Dillon & Co.) $8,500,000 debentures and
850,000 shares of stock

(Bids

Ohio

Common

.

11

(Bids

$300,000

Corp.)

Preferred

Ohio Power Co

Co.,

...

Anthony

(James

(Tuesday)

September 20

Class A Common

Bergstrom Paper Co

American

Aug.

(Wednesday)

August 24

•

are

Preferred

Co

& Sessions

Republic Investors, Inc., Dallas,

eight shares held; rights to

$3,654,000

Inc.)

Co.,

(Bids

(Tuesday)

August 23

.Comnvon

California, N. A

Common

and McGrath

H. Lederer Co., Inc.

(Tuesday)

September 13

...Common

&

Corp

Film

Splendora
(J.

Laird

Common

Aug.

Rauscher, Pierce & Co.;
Co.) $3,700,000

Newsom;
and

American

Underwriter—N one.

(Monday)

General Minerals Corp.__
(Sanders

(Monday)

Massachusetts Indemnity Insurance Co
(Estabrook & Co.) 60,000 shares

$2,000,000

Corp.)

August 22

York: and Drexel & Co.,

July 15 filed 800,000 shares of common stock (par
Price—$10 per share. Proceeds—For working capital,

$7,500,000

invited)

be

September 12

stockholders—underwritten by Equitable

to

to

Underwriters — White, Weld & Co., New
Philadelphia.

that purpose.

Equip. Trust Ctfs.

New York Central RR

(Friday)

August 19

oversubscription privilege); rights ex¬

an

pire Aug. 23. Price—$48.50 per share. Proceeds—To be
applied to the purchase of equity securities of sub¬
sidiaries or to replace other corporate funds used for

(Thursday)

September 8

(Thursday)

August 18
Missouri Pacific RR.

(with

Aug. 9

CALENDAR

(Bids

to be

(Tuesday)

Co.

invited) $12,500,000

Preferred

Pittsburgh

San Francisco

Private Wires to

all offices

Chicago

Cleveland

38

(702)

The Commercial and Financial Chronicle

by the financial statement as of end of the quarter prior

Canadian Uranium Mines, Ltd., Montreal, Canada
3
(regulation "D") '2,000,000 shares of common
stock
(par one cent). Price—15 cents per share. Pro¬

to

Proceeds—For general corporate purposes.
Office—4614 prospect Avenue, N. E., Cleveland 3, Ohio.

ceeds—For exploration and

Underwriter—None.

Caribou Ranch Corp., Denver, Colo.
July 15 filed 505,000 shares of common stock

Continued

from

37

page

purchase.

Baldor Electric Co., St.

Louis, Mo.

July 6 (letter of notification) 19,124 shares of common
stock (par $10) being offered for subscription by stock¬
holders of record June 1

l-for-4 basis; rights

expire
Proceeds—To expand

a

on

Sept 1. Price—$15 per share.
production facilities and/or repair of building and equip¬
ment; to increase inventories; and for working capital.
Office—4327-63 Duncan Ave., St. Louis 10, Mo. Under¬
on

writer—None.
•
Bergstrom Paper Co., Neenah, Wis. (8/24)
Aug. 4 filed 70,000 shares of class A (non-voting) com¬
mon stock
(par $1). Price—To be supplied by amend¬

ment

(around $12 per share).

pansion

modernization

and

G. Becker & Co.

Coeur d'Alene, Idaho.
kane, Wash.
'*

June

Proceeds—To finance ex¬

Underwriter—A.

program.

.

derwriter—Tellier

&

development

expenses.

Co., Jersey City, N. J.

Colo.

ver,

(par 10 cents). Price—$1.50 per snare. Proceeds—.
For advance to Aiumin-Aire, Inc., a subsidiary, and for

acquisition of, advances to and investment in ct-ier com¬
panies that may be organized or acquired.
Office—118
West 22nd St., New York City. Underwriter—J. J. Rior& Co., Inc., New York City.

dan

i

Jr Cook Industries, Inc., Dahas, Texas
(letter of notification) lu<,91o scares of common
(par $1). Price—$1.50 per snare. Proceeds—For

★ Carlisle Corp., Carlisle, Pa.
4 (letter of notification) 7,000 shares of capital
stock (par $1).
Price—At market (estimated at $6.]21/£
per
share). Proceeds—To Furber Marshall, President.
Underwriter—Cohu & Co., New York, N. Y.

general

corporate

curities

Co.

ir Carolina

June 24

8

Aug. 1

assessable

stock

Mines,

(letter

Inc., King Mountain, N. C.
notification) 127,846 shares of

of

Price—At par

stock.

common

tal

non¬

($1 per share).

Proceeds—For expenses incident to Kyanite mining.

South,

assessable
cents

share.

per

dress—P. O

Morris

stock

25
Ad¬
1363, Rapid City, S. D.
UnderwriterBrickley, Harney Hotel, Rapid City, S. D.
common

(par

cent).
Price
mining expenses

one

Proceeds—For

—

Oklahoma City, Okla.
July 12 filed 500,000 shares of common stock (par 10
cents).
Price—$1 per share. Proceeds—To explore and
drill leases and claims in

Stacy

&

Co.,

Underwriter—

State of Utah.

Houston,

Tex.,

on

efforts

"best

basis."

ic Blackstone Uranium Mines, Inc., Denver, Colo.
Aug. 3 (letter of notification) 15,000,000 shares of com¬
mon
stock (par one cent).
Price—2Vz cents per share.
Proceeds—For

Office—801

Columbia

Mining & Uranium Corp., Denver, Colo.

(letter of notification)

stock

mon

incident to mining activities.
Street, Denver, Colo. Underwriter—
Co., Inc., same city.

expenses

Custis

Securities

Blenwood

July 29
Proceeds

(par 10 cents).

—

1,000,000 shares of com¬
—
30 cents per share.
mining operations.

Price

For expenses incident to

Office—612

Kittredge Bldg., Denver, Colo. Underwriter
—Peters, Writer & Christensen, Inc., Denver 2, Colo.
Bojo Uranium Co., Salt lake Citv, Utah
July 8 (letter of notification) 3,000,000 shares of com¬
mon
stock.
Price—At par (10 cents per share). Pro¬
ceeds—For expenses incident to mining operations. Of¬
fice—403 Felt Building, Salt Lake City, Utah.
Under¬
writer—J. E.

Call

&

Co., Salt Lake City, Utah.

-

Boren Oil & Gas

Corp., Wichita Falls, Texas
July 26 filed $600,000 of 6% convertible debentures due
July 15, 1975, to be initially offered for subscription by
""stockholders of record July 15 on the basis of $100 of
debentures for each 100 shares (or fraction thereof held).
Price—At 100% of principal amount. Proceeds—To pay
current
debt; for drilling expenses and development
program.
Underwriters — Burt, Hamilton & Co., Inc.,
Dallas, Tex.; and N. R. Real & Co., Jersey City, N. J.

it Brookline & Neal Finance Co., Portland, Ore. '
July 27 (letter of notification) $50,000 (estimated) face
value of
8%
promissory notes (in denominations of
$500 or multiples thereof). Proceeds—For working cap¬
ital.

Office—521

S.

E.

Ankeny

Street,

Portland,

^

Ore.

California

Electric Power Co.

July 15 filed 230,000 shares of
Proceeds—To

reduce

bank

(8/23)

common

loans.

stock

(par $1).

Underwriter—To

be

determined

by competitive bidding. Probable bidders:
Carl M. Loeb, Rhoades & Co. and Bear, Stearns & Co.

(jointly);

Kidder,

Peabody

&

Co.;

Lehman

California

Electric

Power

Co.

Proceeds—For reduction of bank loans. Underwriter—To
be determined by

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blair & Co. Incorporated;
White, Weld & Co.; Blyth & Co., Inc.; Kidder, Peabody
& Co. Bids—Tentatively scheduled to be received up to
9 a.m. (PDT) on Aug. 30.

of common stock (par $5)
being offered in exchange for all of the issued and out¬
standing capital stock of Goodman Lumber Co., Good¬
man, Wis., on the following basis: 18 shares for each

stock; eight shares for each
share of Goodman 2nd preferred stock; and eight shares
for each share of Goodman 1st preferred stock; offer to
terminate on Sept. 15, 1955 (subject to withdrawal by
Calumet if the required number of Goodman shares have
not been deposited and accepted within 30 days from the
common

date of the mailing of the prospectus to the Goodman
stockholders). Underwriter
None.
Statement effec¬
tive July 20.
—

15

Petrofina

Ltd.

(Montreal, Canada.)

shares

on

are being
offered in exchange for shares of $1
capital stock of Calvan Consolidated Oil & Gas Co.

the

basis

of

one

share

of

Canadian

Petrofina

for

each four shares of Calvin stock and
1,163,180 shares are
offered in exchange for shares of common
stock
of

Western Leaseholds Ltd. or Leasehold Securities Ltd. on
the basis of three shares of Canadian Petrofina for each
10 shares of Western Leaseholds or Leasehold Securities
stock held. These offers will

expire

writer—None.




For

|(par

,

working
dale,

research

capital.

I., N. Y.
New York.

Cordillera

machinery and
Boulevard, FarmingJ.

Gruber

&

For

be

to

ing

Mining Co., Denver, Colo.
(letter of notification) 3,OOO.OOG shares of com¬
(par one cent). Price—10 cents per share.
Proceeds—For mining expenses. Office—404
University
Building, Denver, Colo. Underwriter—Peters, V/riter &

(letter

offered

share.

in

units

Price—$5

of

two

class

A

and

one

class

May 27

on

Sept. 15. Under¬

stock

mon

B

Christensen, Inc., Denver, Colo.

unit. Proceeds—For general work¬
Office—505 National Bank of Commerce

capital.

—

Cortez Uranium &

Parking; Service, Inc.
of notification)
120,0C0 shares of non¬
voting common stock, class A—(par 50 cents) and 60,000
shares of voting common
stock, class B (par 10 cents)
1

Mining Co., Denver, Ccto.

mining operations.
Offices
738 Majestic
Bldg.,
Denver, Colo., and 317 Main St., Grand Junction, Coio.
Underwriter—Lasseter & Co., Denver, Colo.

Co.,

ir Charleston

Aug.

Office—65 East 4Ch South,
Underwriter—Empire Securities

Lake

June 8 (letter of notification) 2,995,000 shares of
common
stock.
Price—At par (10 cents per share).
Proceeds—

development,

Underwriter—P.

4th

Empire

city.

same

City,. Utah.
Corp., same city.

Office—Allen

L.

Inc.,

and

Corp.,

East

—

ceeds—For mining expenses.
Salt

100,000 shares of common
Price—$1.75 per share.
Proceeds—

$1).

product

per

Coso

it Cisco Uranium Corp., Salt Lake City, Utah
Aug. 10 (letter of notification) 7,000,000 shares of capital
(par one cent).
Price—Three cents per share.

Uranium, Inc., Long Beach, Calif.
(letter of notification) 3,000,000 shares of capi¬
tal stock.
Price—At par (10 cents per share). Proceeds
—For mining expenses.
Office^-2485—American Ave.,
Long Beach 6, Calif. Underwriter—Cccmbs &
Co., of
Los Angeles,
Inc., San Francisco and Los Angeles, Calif.

Proceeds—For

•

Building,
Investment

Charleston, W. Va.
Co., same address.

Underwriter—Crichton

May 31

stock

mining expenses, etc.
Office—2630 South
West, Salt Lake City, Utah.
Underwriter—Denver

2nd

Securities, Inc.,
Clad

Denver,

(Victor V.)

Colo.

Co.,

rett Herrick

&

Cromwell

Uranium & Development
Co., Inc.
(8/24)
■
May 25 (regulation "D") 300,000 shares of common stock
(par five cents).
Price—$1 per share. Proceeds—For
exploration and development expenses, etc. Offices—
Toronto, Canada, and New York, N. Y. Underwriter—

Philadelphia, Pa.

June 17 (letter of notification) 120,000 shares of common
stock (par 25 cents). Price—$2.50 per share. Proceeds—
For equipment and working capital. Underwriter—Bar¬

James

AnthonySecurities

Corp.,

New

York.

Crown

Co., Inc., New York.

Uranium Co., Casper, Wyo.
May 6 (letter of notification) 225,435 shares of common
stock (par five
cents). Price—At market (estimated at

Clad-Rex Steel Co., Denver, Colo.
June 6 (letter of

notification) 300,000 shares of common
about 15 cents per share). Proceeds—To
($1 per share). Proceeds—To re¬
selling stock¬
outstanding debts and for working capital. Office— • holder who received these shares in exchange for shares
of Kontika Lead & Zinc
40th Ave. and Ulster St., Denver, Colo,
Underwriters—
Mines, Ltd. Office—205 Star
Mountain States Securities Corp. and
Bldg., Casper, Wyo. Underwriter—Justin Steepler, Inc.,
Carroll, Kirchner
New York.
& Jaquith, Inc., both of
Denver, Colo.
,
•
stock.

Price—At par

tire

,

_

.

★ Cole-Ray Uranium Corp., Reno, Nev.
Aug. 1 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.

★ Cuba (Republic of)
(9/1)
*
Aug. 10 filed $3,000,000 of Veterans, Courts and Public"

Proceeds—For

amendment.

incident

expenses

to

.

Works

mining

4

activities; ?
Office—13 N. Virginia Street, Reno, Nev<? Underwriter

struction

—None.

of

licly.

Price—50 cents

Investing
York; and Shaiman & Co., Denver, Colo.

Colorado Oil & Uranuim Corp.
June 7 (letter of notification) 300,000 shares of

•

Bldg., Denver, Colo.
same city.

Corp.,

common

and

pany

209,410

Price—To

be

Price—$15

per

share.

ic Defense

(par

Proceeds—For

Office—170
Underwriter
Grand

—

cent).

expenses

Grand

Columbia

fered

Price—At par
business

and

com¬

Grand

per

share).

Box

stock

(par

one

oil

cent).

Price—10

cents

com¬

share.
Office—Denver

and

per

Denver, Colo.

Uranium Corp., Seattle. Wash.
June 20 (letter of notification) 1,750,000 shares of com¬
mon stock. Price—At
par HO cents per share). Proceeds

common

—For

mining

Proceeds—To op¬

Bldg.,

Seattle,

expenses.

Office—1226-1411

Fourth

Ave.

Wash.

of

if Dix Uranium Corp., Provo, Utah
Aug. 10 (letter of notification) 6,000,000 shares of non¬
capital stock.
Price—At par (five cents per
share).
Proceeds—For mining expenses.
Office—290
assessable

5

cumulative

preferred stock. Price—At par ($100 per
Proceeds—For working capital.
Office—3023

St,* Omaha, Neb.
Corp., same city.

North

University

Weber

Investment

Conjecture Mines, Inc., Coeur d'Alene, Idaho
May 5 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—25 cents per share. ^ Proexpenses.

Office—326 Wiggett Bldg.r

Ave., Provo, Utah.
Co., Provo, Utah.

Underwriter
-

—

.

Dome Uranium

Mines, Inc., Denver, Colo.
July 12 (letter of notification) 1,300,000 shares of

Underwriter—Wachob-Bender

mon

mining

incident to mining activities. Ad¬
101, Vanadium, N*. Mex. Underwriter

expenses

O.

for

Community Credit Co., Omaha, Neb. r
6
(letter of notification) 1,000 shares

ceeds—For

10

Dinosaur

— -

($1

Mining Co., Vanadium, N. Mex.
notification) 300,000 shares of com¬
cents).
Price—$1 per share. Pro¬

of

gas operations.
Club Bldg., Denver, Colo.
Underwriter—Carroll, Kirch¬
ner &
Jaquith, Inc.,

mining operations.
Junction, Colo.
Securities
Co., Denver and

June

Farnam

—

(par

Proceeds—For

working capital.
Office—Salt
City, Utah.
Underwriter—None; shares to be of¬
through President and Vice-President.

share).

shares for three selling stockholders.
by amendment. Proceeds—/For
Underwriter
Scherck, Richter Co..

Denver-Golden Oil & Uranium Co.
(letter of notification) 2,999,000 shares of

mon

Price—Two cents per share.

Road,

★ Commonwealth Credit Corp. of Utah >
Aug. 11 (letter of notification) 40,000 shares of
erate

Bldg.,

.

June 23

incident to

Junction, Colo.

stock.

Office—726 Paulsen

city.

same

—None.

Uranium

Vista

stock

dress—P.

Stand-

Commercial Standard Building, Fort

one

*

Metals

(letter

1

mon

1, Texas.

stock

r

supplied

working capital.
Louis, Mo.

Proceeds—For

Underwriter—Commercial

Mines, Inc.
July 12 (letter of notification) 15,000,000 shares of
mon

Co., New

St.

ceeds—For

Commercial

&

* Day-Brite Lighting, Inc., St. Louis, Mo. * (9/8)
Aug. 12 filed 259,410 shares of common stock (par
$1),
of which 50,000 shares are for the
account of the com¬

Underwriter—Birkenmayer & Co.,

surplus.

Insurance- Co.,

consideration

.

Dawn Uranium & Oil

stock

Worth

in

'

Aug.

aid

them

Underwriter—Allen
.

Standard Life Insurance Co.,
Worth, Texas
July 28 (letter of notification) 10,000 shares of common

$10).

work.

Empire State Bldg.,

Fort

and

which had received

—

ic Commercial

(par

Price—To be supplied by
Romenpower 'Eletra Con¬

To

uranium and-oil exploration.

cents). Price—$1 per share. Proceeds—
mining activities. Office — 350 Equitable

and

1983.
—

Co., Spokane, Wash..
June 16 (letter of
notification) 1,500,000 shares of com¬
mon stock.
Price
10 cents per share/ Proceeds—For

(par 20

oil

For

Co.

construction
;

tion and development expenses and for general
corpor¬
ate purposes.
Underwriters—General
New

due

Proceeds

■■

share.; Proceeds—For explora¬

per

%bonds

York.

Uranium, Inc.* Montrose,* Colo. (9/1)
April 21 filed 2,960,000 shares of common stock (par one
cent), of which 2,500,000 shares are to be offered pub¬

Lake

filed

1,434,123 shares of non-cumulative par¬
ticipating preferred stock (par $10), of which 270,943
par

stock

capital

Calumet & Hecla, Inc.
June 9 filed 116,832 shares

Canadian

Invest-^

ir Century Controls Corp.
(letter of notification

stock

(8/30)

July 2 filed $6,000,000 of first mortgage bonds,, due 1985.

share of Goodman

Underwriter—Universal

expenses.

mining operations. Office—65
City, Utah.
Underwriter

Lake

Copper Blossom Uranium & Mining Co.
June 24 (letter of notification) 5,000,000 shares of
capital
(par one cent). Price—Five cents per share. Pro-

Corp., Washington, D. C.

Aug. 5

Brothers;

Merrill Lynch, Pierce, Fenner & Beane. Bids—Scheduled
to be received up to 9:30 a.m. (PDT) on Aug. 23.

July

mining

Se¬

stock

Colohoma

Underwriter—None.
•

For
ment

Box

Black Panther Uranium Co.,

Porter,

Springs Uranium Co., Moab, Utah
(letter of notification) 300,000 shares of common
(par five cents). Price—$1 per share. Proceeds—

June 8
stock

Salt

Securities

Cedar

ic Black Hills Uranium & Minerals Corp.
Aug. 11 (letter of notification) 1,200,000 shares of non¬

Underwriter—Central

purposes.

Copper Blossom Uranium & Mining Co.
(letter of notification) 5,000,000 shares of capi¬
stock (par one cent).
Price—Five cents per share.

Proceeds—For

Un¬

derwriter—None; shares to be offered through directors.

Inc., Chicago, 111.

common

stock

Aug.

Aug.

/

Fiberglass, Inc.
Aug. 4 (letter ol notification) 200,000 shares cf

share.

per

Underwriter—M. A. Cleek, Spo¬

Consolidated

Un¬

(par $1.)
Proceeds—For acquisition of prop¬
erty and equipment, construction of additional facilities,
etc. Underwriter—Mountain States
Securities, Inc., Den¬
Price—$4

Thursday, August 18, 1955

..

.

stock

(par

one

cent).

-

Price 20 cents

per

com¬

share. Pro¬

ceeds

v

—
For* expenses incident to
mining • • operations.
Office—352 Colorado National Bldg., Denver. Colo. Un¬
L. Hughes & Co.,

derwriters—R.
W. Allen &

Co., Cheyenne, Wyo.

Denver, Colo.; and G.

•

Number 5456

Volume 132

if Douglass Muffler Manufacturing Corp.
Aug. i*
(letter of notification) 5,000 share of capital
stock.
Frice—At par ($10 per snare).
Proceeds—For

of moving, working capi¬
Valley Boulevard, Alhambra,

payment cn property, expense

tal, etc. Office—1916 West
Calif. Underwriter—None.
Chemical

Dow

Co.,

Midland,

Mich.

Aug. 5 filled 200,000 shares of common
to be offered to employees of company
its

stock (par $5)
and certain of

associated companies. Subscriptions

subsidiaries and

accepted from Sept. 6 through Sept. 30. PriceTo be determined near the end of August, 1955. Proceeds

will

be

—For General

corporate purposes.

Underwriter—None.

if Eastern Lime Corp., Kutztown, Pa. (9/7-8)
Aug. 10 filed $800,000 of 15-year 6% convertible de¬
bentures due Sept. 1, 1970, and 30,000 shares of common

Price—To be supplied by amendment.
Proceeds—To repay bank loans and to establish a new
quarry in Oley, Pa.
Underwriters—Stroud & Co., Inc.,
Philadelphia, Pa.; and Warren W. York & Co., Inc.,
stock

(par S2).

Allentown, Pa.

Salt Lake City,

Pa.

Street., Philadelphia 2,
25 Broad

Underwriter—Elliot & Co.,
Offering—Now being

Street, New York, N. Y.

>

made.
•

Electronics

6

Jan.

filed

of Ireland

Co.

300,000

shares of capital stock.

Price—Al

($1 per share). Proceeds—For machinery and
ing and working capital
Office — 407 Liberty
Building, Philadelphia, Pa. Underwriter—None.
ment. withdrawn Aug. 2.

par

build¬
Tw*
State¬

if Evergreen Mines, Inc., Seattle, Wash.
Aug. 5 (letter of notification) 100,000 shares of common
stock (no par).
Price—10 cents per share. Proceeds—
For expenses incident to mining activities. Office—5002
Ivanhce
Place, N. E., Seattle, Wash.
Underwriter—
None.

Salt Lake City, Utah
May 23 (letter of notification) 275,000 shares of capital
stock (par 50 cents).
Price—$1 per share. Proceeds—
For mining expenses.
Office—2320 South Main Street.
Salt Lake City, Utah.
Underwriter — Eliason, Taylor,
Fairway Uranium Corp.,

Cafarelli Co., Las Vegas,

Nev.

Co., Albany, N. Y.
June 28 filed $1,500,000 of 5% debentures to be offered
directly to members of the American Farm Bureau
Federation and to State Farm Bureau Federations and
lo„cal organization. Price—At 100% of principal amount
(in denominations of $250 each). Proceeds—To provide
company with necessary funds to comply with require¬
ments of surplus to policyholders under New York and
other state laws. Underwriter—None.
Farm

Five

Family Mutual Insurance

Slates Uranium

corporate purposes.
Underwriter—•

Ga.

None.

if Gahagan, Inc., Bethlehem, Pa.
Aug. 10 (letter of notification) 100,000 shares of common
stock (par one cent).
Price—$3 per share. Proceeds—
To reduce indebtedness and for working capital.
Office
—11 West Fourth Street, Bethlehem, Pa.
Underwriter

'

—None.

Mountain

Uranium Corp.

notification) 500,000 shares of common
aggregate of $50,000.
Proceeds—For mining expenses. Office—82 Beaver St.,
New York. Underwriter — Prudential Securities Corp.,

July 29 (letter of
stock

(par

one

cent). Price—An

address.

Hills Mining &

Gas

Empire Securities Corp., Las

•

General

Homes,

(8/22)

Dallas, Texas

July 21 filed 1,850,000 shares of common stock (par $1).
Price—To be supplied by amendment (may be around
$2 per share). Proceeds—To purchase the production
payments to which the company's oil properties are now
subject; to pay an obligation of S. Y. Guthrie, President;
and for acquisition of additional uranium properties and

exploration, development and mining of its present
properties. Underwriters — Sanders & Newsom and
Rauscher, Pierce & Co., both of Dallas, Tex.; and Laird
&

30

Co., Lexington, Ky.

Inc., Mount Vernon, N. Y. (8/26)
$1,000,000 of 5%% sinking fund deben¬
tures due 1975 (with detachable seven-year warrants to
purchase 50 shares of $1 par common stock for each
$1,000 of debentures, at prices ranging from $8 to $15
per share over the period), together with 25,000 shares
of common stock.
Price—100% of principal amount for
the debentures and $7 per share for the stock. Proceeds
Approximately $290,000 to pay insurance company
loan, reduce certain borrowings and increase working
Genung's,

Aug.

Corp.

filed

5

Underwriters—P. W. Brooks & Co., Inc.
Co. Incorporated, both of New York.

capital.
Blair &

ments, Albuquerque. N. M.

Gibralter Uranium Corp.,

Dairies, Inc.

and

Aurora, Colo.

July 18 (letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.

July 21 filed $20,000,000 of 4V2% subordinated deben¬
tures due Jan. 1, 1981, of which $15,000,000 are being
offered first to holders of the outstanding $4.50 preferred

incident to mining. Office—701
St., Aurora, Colo. Underwriter—Robert J. Con-

Proceeds—For expenses
Moline

4V2% cumulative preferred stock, sink¬
ing fund series (par $50) and 4V2% cumulative preferred
stock, sinking fund series of 1955 (par $50) at the offer¬
ing price; and $5,000,000 are being offered in exchange,
par for par, for the outstanding 50,000 shares of Philadel¬
phia Dairy Products Co., Inc. first preferred stock.
Both offers will expire on Aug. 31. Price — 105% of
stock (par $100),

nell, Inc., Denver,

principal amount. Proceeds—To redeem preferred stocks.
Underwriters—Allen & Co. and Salomon Bros. & Hutzler,

Mutual Life Insurance Co.
notification) 45,583 shares of common
stock (par $1) to be offered for subscription by stock¬
holders of record June 10 in the ratio of one new share
for each three shares held; stock not subscribed for by
Sept. 10, 1955 will be offered to public. Price—To stock¬
holders, $3 per share; and to public, $5 per share. Pro¬
ceeds—To increase capital and surplus accounts. Office—
210 Boston Bldg., Denver, Colo. Underwriter—]tfone.
• Great Western Corp., Los Angeles, Calif.
(8/24)
Aug. 1 filed 500,000 shares of capital stock (par $1).
Price—To be supplied by amendment, Proceeds—To re¬
tire $10,473,628 bank loan, for stock acquisitions and for

both of New York.

International, Inc.
June 30 filed 300,000 shares of common stock (par 100),
of which 250,000 shares of for account of company and
50,000 shares of five selling stockholders. Price—$3 per
share.
Proceeds—For working capital; for exploitation
of "Totosave" system; and for marketing of "TropicRay" infra-red space heater. Office — Pittsburgh, Pa.
Underwriter—Barrett Herrick & Co., Inc., New York.
Fort

Pitt

Packaging

Fowler Telephone

Great Yellowstone

ginia St., Reno, Nev. Underwriters—Cromer
Co. and Walter Sondrup & Co., both of Salt

July 26 (letter of

if Half Moon

III.

—For

notification) 15,000 shares of common

Utah,

Hardy-Griffin Engineering Corp.,

Insurance Co., Berkeley, Calif.
1,000,000 shares of common stock (par $10).
Price—$22 per share. Proceeds—For capital and surplus.
Business—All insurance coverages, except, life, title and

Hawk Lake Uranium Corp.

expenses,

Hilo

Co., Salt Lake City, Utah

ceeds—For mining expenses. Office—515 Deseret




Bldg.,

etc.

City, will act as agents.

Service Corp.

(letter of notification) 15,000,000 shares of com¬
Price—At par (one cent per share). Pro¬

(par 10
mining
Underwriter—Dobbs & Co., New York

April 12 filed 200,000 shares of common stock
cents). Price—$1.50 per share. Proceeds — For

Office—2054 University Avenue, Berkeley,
Calif., c/o Ray B. Wiser, President. Underwriter—Any
underwriting agreement will be made on behalf of this

stock.

Houston, Texas

Underwriter—Benjamin & Co., Houston, Texas.

capital.

mortgage.

mon

Proceeds
mining expenses. Office—E-17 Army Way, Ogden,
Underwriter—United Intermountain Brokerage

July 8 (letter of notification) 240,000 shares of common
stock (par one cent). Price—$1.25 per share. Proceeds—
For purchase of machinery and equipment and working

Freedom

Aug. 1

of capital

Corp., Ogden, Utah.

June 6 filed

Fremont Uranium

Uranium Corp., Ogden, Utah

Aug. 10 (letter of notification) 8,000,000 shares
stock.
Price—At par (two cents per share).

$1.25) to be offered for subscription by stock¬
holders of Fox Head Brewing Co. on the basis of one
Peter Fox share for each four Fox Head shares held.
Office—2626 West Monroe St., Chicago, 111.

by Uni-Insurance

then to general

To stockholders and employees, at par

—

A

■

f

«

Home-Stake Production

Co., Tulsa, Okla.
May 12 filed 60,000 shares of capital stock (par $5) and
1,000 debentures (par "$100) to be offered for sale in
units of 60 shares of stock and one $100 debenture, or
multiples thereof. Price—$400 per unit. Proceeds—For
working capital. Underwriter—None. O. Strother Simp¬
son, of Tulsa, Okla., is President.
Industrial Hardware Mfg. Co.
May 12 (amendment) $1,500,000 of 5% debentures due
1975 and 300,000 shares of common stock (par 50 cents),
of which 85,000 shares are to be sold to Seymour and
Bernard Offerman at $5 per share.
Price—To be sup¬
plied by amendment. Proceeds—To purchase Hugh H,
Eby Co. and Wirt Co. Underwriters—Hallowell, Sulz¬
berger & Co., Philadelphia; and Baruch Brothers & Co.,
Inc. and Weill, Blauner & Co., Inc., both of New York.

Oil & Uranium Corp.,

Denver, Colo.

July 18 (letter of notification) 1,200,000 shares of com¬
mon stock
(par 10 cents). Price — 25 cents per share.
Proceeds—For expenses incident to oil and gas activities.
—Shaiman & Co., Denver,

Amiesite

Interstate

Denver, Colo.
Colo.

Underwriter

Corp.

19 filed $438,200 of 5V2% convertible debentures
due 1965, to be offered first for subscription by stock¬
holders at the rate of $20 of debentures for each 16
shares held. Price — To be supplied by amendment.
Proceeds
For working capital. Business — Bituminous

July

—

concrete paving materials. Office—Delaware Trust

Bldg.,

Wilmington 99, Del. Underwriter—None.
lola Uranium Corp.

July 26 (letter of notification) 1,200,000 shares of com¬
mon
stock (par one cent).
Price—25 cents per share.
Proceeds—For mining costs. Office—1414 So. Michigan
rities Co., Denver,

Colo.

Plantations,

Pecan

Ltd.

24,900 shares of ordinary common

filed

28

Underwriter—Columbia Secu¬

5, 111.

Chicago

Avenue,

stock

(par one Israeli pound). Price—$10 per share. Proceeds
—For capital expenditures. Underwriter—None. Offices
—Natanya, Israel, and New York, N. Y.
Kachina

Uranium Corp.,

Reno, Nev.

May 12 (letter of notification) 600,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Office—206 N. Virginia St., Reno,
Nev. Underwriter—Whitney, Cranmer & Schulder, Inc.,
Denver. Colo.

if Kaniksu Metals, Inc., Tacoma, Wash.
Aug. 2 (letter of notification) 1,000,000 shares of capital
sto£k* (par one cent). Price—Five cents per share. Pro¬
ceeds—For expenses incident to mining activities. Office
—522V2 North Kay Street, Tacoma, Wash. Underwriter
Cowan,
•

through Edmund James

shares to be offered
Vice-President.

—None;

,

Kirby Oil & Gas Co.

July 8 filed 200,000 shares of common stock (par $1),
of which 100,000 shares are for the account of the com¬

and 100,000 shares for the account of the

pany

Murchi-

Price—To
be supplied by amendment.
Proceeds—To retire out¬
standing bank loans and for exploration of oil and gas
leases. Underwriters—Allen & Co., New York: and Rau¬
scher, Pierce & Co., Dallas, Texas.
Offering — Post¬

son-Richardson financial interests of Texas.

poned.
if Koal-Krudes, Inc., Spokane, Wash.
Aug. 8 (letter of notification) 1,200,000 shares of com¬
mon
stock (par 10 cents).
Price—25 cents per share.
Proceeds—To build processing plant at Monarch, Wyo.
Office
711 Hutton Building, Spokane, Wash.
Under¬
—

writer—None, shares to be offered through
of

directors

officers and

company.

Leborn Oil & Uranium Co.

6,000,000 shares of capital
share). Proceeds—
mining expenses. Office — 124 V2 South Main St,
Newcastle, Wyo. Underwriter — Mid-American Securi¬
ties, Inc. of Utah, Salt Lake City, Utah.
Life and Accident Insurance Co. of Alabama
June 2 filed 750,000 shares of class B (non-voting) com¬
mon stock
(par $1). Price—$3 per share. Proceeds—To

June 8
stock.

(letter of notification)

Price—At par (five cents per

For

increase

capital and surplus. Office—Gadsden, Ala. Un¬
—
None, sales to be handled by Burlus Ran¬

derwriter

dolph Winstead,

Secretary and Treasurer of the com¬

pany.

stock (par

company

Brokerage
Lake City,

Utah.

Omaha, Neb.

Brewing Co., Chicago,

Uranium Co.

(letter of notification) 1,200,000 shares of com¬
mon
stock (par 10 cents).
Price—25 cents per share.
Proceeds—For mining operations. Office—139 N. Vir¬

notification) $260,000 of 4% first mort¬
1, 1975. Price—At par
(in denominations of $1,000 each). Proceeds—To retire
existing debt, acquire Northwestern Bell properties in
Leighton, la., and for conversion of both exchanges to
dial operation.
Underwriter — Wachob-Bender Corp.,
(Peter)

holding cor¬
New York.

June 29

Co., Pella, la.

bonds, series A, due May

Fox

(letter of

general corporate purposes. Business—A
poration. Underwriter-^Lehman Brothers,

May 6 (letter of
gage

Colo.

Great Eastern

June 23

employees at rate of five

per share); and to public, at prevailing market price
($25.87V2 per share on July 22, 1955). Proceeds — For
expansion and improvement. Underwriter—None.

—

Office—1019 Simms Bldg.,
Albuquerque, N. M. Underwriters — Coombs & Co. of
Ogden, Ire., Odgen, Utah; and Shelton Sanders Invest¬
ceeds—For mining expenses.

to

($20

Feb.

Corp.

3,000 shares of 5%
— At par
($100 per
share). Proceeds—To retire bank loans. Underwriters—
Southern Securities Corp., and Hill, Crawford & Lanford, Inc., both of Little Rock, Ark.; and Security &
Bond

Price

Israel

Waterworks

(letter of notification)
cumulative preferred stock. Price

June

•

public.

Co., Wilmington, Del.
General

first offered

Office—3975 East 58th Ave.,

Vegas, Nev.

Minerals Corp.,

be

to

shares for each full year of employment;

Inland

Inc.
\
Dec. 15 filed 300,000 shares oi 'common stock (par $1).
Price—$5 per share. Proceeds—For plant expansion, new
equipment, inventory and working capital.
Office—
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬
ler & Co., New York.
General

shares

Oil, Inc., Kemmerer, Wyo.

(letter of notification) 1,000,000 shares of capi¬
tal stock (par five cents).
Price — 25 cents per share.
Proceeds—For oil and mining expenses. Underwriter—•
1

Aug.

(letter of notification) 3,000,000 shares of com¬
stock.
Price—At par (10 cents per share). Pro¬

Foremost

Moab Brokerage

—

purchase equipment and for general
Office—Exley Avenue, Savannah,

June 30
mon

Underwriter

if G. & A. Laboratories, Inc., Savannah, Ga.
Aug. 1 (letter of notification) 2,500 shares of common
stock (par $1).
Price —$25 per share. Proceeds — To

same

if El-Trcnics, Inc., Mayfield, Pa.
(formerly Campbell Teletector Corp. of Pa.)
Aug. 2 (letter of notification) 100,000 shares of common
stock (par five cents). Price—$2.75 per share. Proceeds
—For general
operating capital. Office—1420 Walnut

Utah.

Co., Western States Investment Co., Potter Investment
Co., Mid-America Securities, Inc. of Utah, and CashinEmery, Inc., all of Salt Lake City, Utah.

Gallina

39

(703)

Chronicle

The Commercial and Financial

..

.

"

Electric

Hilo, Hawaii

Light Co., Ltd.,

(9/5)

Aug. 1 filed 25,000 shares of common stock to be offered
for subscription by stockholders of record Sept. 5 on the
basis of
i'H

one new
,

i

share for each five
i

.

■

shares; unsubscribed
'

i.

,

if Link-Belt Co., Chicago, III.
Aug. 12 filed 134,433 shares of common stock
to be
offered in exchange for the common

(par $5)
stock of

Syntron Co. at rate of 5.4 shares of Link-Belt stock for
earh Syntron share. The exchange will become effective
if 95% of the 24,895 shares of outstanding Syntron stock

Link-Belt reserves the
the exchange effective if not less than
shares are so deposited in exchange.

deposited for exchange; but

are

right to declare
80% of Syntron

Fla.
of common stock (par 33^3
be offered for subscription
by common stockholders and part to Joseph C. Mackey,
President of company. Price—To be supplied by amend¬
ment.
Proceeds — For purchase of equipment and for
Mackey Airlines,

Inc., Ft. Lauderdale,

July 29 filed 333,334 shares
cents), part of which are to

general corporate purposes. Underwriters—Atwill
Miami Beach, Fla., and Emerson Cook Co., Palm
Fla.

«

1

i

11

.

•

i

.'

:

* *

.

*

•

.

i

& Co.,

Beach,

:

Continued:on

/

•

.

1

,

»

*j

.

i

r f

page;40
1

;

) <• i

40

The Commercial and Financial Chronicle

(704)

Continued from page

Morning Sun Uranium, Inc., Spokane, Wash.

39

June

•£ Magnolia Park, Inc.
Aug. 8
(letter of notification)
of

shares

stock

common

first for subscription

(par

maximum

10

cents)

by stockholders.

to

of

600,000

be

offered

Price—To stock¬

holders, 50 cfents per share; unsubscribed shares to pub¬
lic, 62V-> cents per share. Proceeds—For general corpo¬

Underwriters—Gearhart & Otis, Inc. and
Corp., both of New York City; and

rate purposes.

Securities

Hunter

T. -J. Feibleman &

Co., New Orleans, La.

& Co., Inc.
Aug. 5 (letter of notification) 289,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital.
Business — General contractors.
Office
511 Center Ave., Mamaroneck, N. Y. Under¬
writer—A. C. Champlain & Co., New York, N. Y.
(M. E.)

Maloney

—

Marine

Midland

Corp., Buffalo, N. Y.
(par $5) to
exchange for all of the outstanding capital

Aug. 5 filed 43,000 shares of common stock
he offered in

of

stock

the basis of

National

Bank

4'% Marine Midland
of

share

one

Citizens

The

Citizens

stock.

of

Springville on
shares for each

common

The

offer

is

subject

to

'acceptance by holders of not less than 80% (8,000 shares)
•of

Citizens stock.
Mascot

Mines, Inc.
Aug. 1 (letter of notification) 300,000 shares of common
stock
(par 35 cents).
Price — 62Vz cents per share.
Proceeds

For

—

expenses

incident

to

Maule

Industries, Inc., Miami, Fla.
July 15 filed 638,532 shares of common stock (par $1),
being offered lor subscription by common stockholders
at the rate of one new share for each 2lk shares held
about

5; rights to expire Aug. 22. Price—$5.87%
per
Proceeds—To pay purchase money notes
issued in connection with property acquisitions: to pay
Aug.
share.

bank

the
plant property.
Business — Production and sale
of concrete aggregates, concrete blocks and ready-mix
concretes.
Underwriter—Merrill Lynch, Pierce, Fenner
loans;

and

to

exercise

an

option

to

purchase

Lake

&

Beane, New York.
Medical

June

15

Abstracts, Inc.,

Philadelphia, Pa.

300,000 shares of com¬
(par one cent). Price—$1 per share. Proceeds
—For working capital, etc. Office—825 Western Savings
Fund Bldg., Philadelphia, Pa.
Underwriter — Carl J.
(letter of notification)

stock

mon

Bliedung, Washington, D. C.
• Mekadrin
Plantations, Inc., New York
April 28 filed 70,000 shares of common stock (par $10).
Price—$10.75 per share. Proceeds—For acquisition of

additional

working capital and other gen¬
corporate purposes. Business—Production and sale

eral

groves

and

of citrus fruits in State of Israel; also plans to grow Q.ih-

tropical fruits.
July 28.

Underwriter—None.

Statement effective

S

28

12.50)

filed

being

j..

314,718 shares of common stock
(par
offered in exchange as follows: 102,250

basis;

53,324

nessee

Products & Chemical Corp. on a 1%-for-l

shares

to

common

stockholders

of

Ten-

on

a

1%-for-l

basis; and 548 shares of class B common stockholders of
The Osgood Co. on a l-for-lV2 basis. Offer will expire
on Sept. 30.
Underwriter—None.
Mesa-Loma

July 13
mon

Mining Corp., Fort Collins, Colo.

(letter of notification) 2,955,000 shares of com¬
(par one cent). Price — 10 cents per share.

stock

Proceeds—For

incident to mining operations.
Office—415 Peterson St., Fort Collins, Colo. Underwriter
—Bay Securities Corp., 115 Broadway, New York, N. Y.

,

expenses

Meteor Air

Transport, Inc.
July 29 (letter of notification) 5,963 shares of Class A
stock (par $1) to be issued upon exercise of warrants at
$1.50 per share. Proceeds—For working capital; Under¬
writer—Eisele & King, Libaire, Stout & Co., New York.

r

•

,

Mississippi Valley Gas Co. (8/19)
July 28 filed $2,000,000 of convertible subordinate debentures due 1975, to be offered for subscription by
common
stockholders of record Aug. 18, 1955, on the
basis of $100 of debentures for each 25 shares held;
rights to expire on Sept. 8. Price — 100% of principal
amount.
Proceeds—To retire $1,500,000 of outstanding
4%% bonds due 1974 and prepay $457,000 of 4%% notes
due to
1956.
Office—Jackson, Mich.
Underwriter —

•

•

-

Equitable Securities Corp., Nashville, Tenn.

Monte Carlo

Uranium

Mines, Inc.
June 6 (letter of notification) 6,000,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds—For mining expenses.
Office — 706 Newhouse

Bldg.,
tinent

Salt Lake City, Utah.
Underwriter—Mid-Con¬
Securities, Inc.. same city.

if Moran Electronic Components, Inc.
Aug. 1 (letter of notification) 1,500 shares of 7% cumu¬
lative preferred stock (par $10) and 2,000 shares of com¬
mon stock
(no par)/ Price—$10 per share. Proceeds—
■

t

common

$10

share; and for common, $2.50 per share. Proceeds
acquisitions. Underwriters

per

—For construction loans and

For

working capital, equipment and advertising.

—10500-02

Wheatley Street,

writer—None.




Kensington,

Md.

Office
Under¬

Bldg., Denver, Colo.
Co.,

To

(par

50,000 shares of

Price—$1

10 cents).

share.

per

bank loan; and for expansion to develop ad¬
products and for working Capital.
Business—
test equipment.
Office—160 Herricks Road,
Mineola, L. I., N. Y.

—Of stock, $28 per

cipal amount.

share; and of notes, at 100% of prin¬

Proceeds

—
For further development of
development of urban and suburban
areas; extension of credit; financing of exports to Israel;
and working capital and general corporate purposes.

Israel

industry;

Underwriter—None, sales to be handled through

com¬

officials and employees.

pany

Panama

Minerals, Inc., S. A.

Price—$1.25

(Republic of
(par $1).

share. Proceeds—For mining
Office—Denver, Colo. Underwriter—None.
per

expenses.

Pandora Uranium Mines, Inc.
July 14 (letter of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.

Proceeds—For

Navajo Cliffs Uranium Corp., Provo, Utah
July 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For mining expenses. Office—156 No. University
Ave., Provo, Utah. Underwriter — Lindquist Securities,
Salt Lake City, Utah.
Neva-U-Tex

July 15

Uranium, Inc., Goldfield, Nev.

(letter of notification)

4,000,000 shares of cap¬
share. Proceeds—For

ital stock.

Price—Five

mining

Office—312 East Crook St., GoldUnderwriter — Utah Uranium Brokers, Salt

expenses,

field, Nev.
Lake

cents

per

etc.

stock

(par

10

cents)

19,900 shares of
for

each

100

and

one

cent

and

stock

common

shares

sold.

Proceeds—To

Street,

for

and

New

at

rate

of

10

warrants

cents

share;
inventory,

per

Douglass

bank

loans

construction.

Y.

N.

and

accounts

Office—50

Church

Underwriter—None.

Nitro-Chemicals, Ltd.

Price—To

be supplied by amendment.

Proceeds—To buy land and
synthetic fertilizer plant; and for working
other corporate purposes.
Office—Calgary,

capital and

if Nuclear Corp., Carson City, N«v.
Aug. 9 (letter of notification) 880,000 shares of capital
stock, non-assessable (par two cents), of which 200,000
will

be

80,000 shares

ing

offered

oa

expenses.

City,

son

25 cents per share; 200,000 at
cents; 200,000 at 40 cents and
50 cents per share. Proceeds—For min¬

200,000

cents;

Nev.

Oasis

at

at

35

Office—Virginia & Truckee Bldg., Car¬
Underwriter—None.

Uranium & Oil

Corp., Fort Worth, Texas

June 8 (letter of notification) 265,000 shares of common
stock (par 50 cents).
Price—$1 per share. Proceedsr—
For uranium and oil exploration. Office—Fortune Arms

Bldg., Fort Worth, Tex. Underwriter—Standard Securi¬
ties, Inc., Salt Lake City, Utah.
Orange Hotel, Inc., Dallas, Texas
July 19 filed $450,000 of registered 4% sinking fund
debentures due May 1, 1985, which are to be offered
in exchange for $375,000 principal amount of
registered
4%

debentures and 3.750 shares of $20 par stock of
Orange Community Hotel Co. in the ratio of $120 of new

debentures for each $100 of debentures and 20 shares of
stock of the Community company. Underwriter—None.
Pacific

Telephone

&

Telegraph Co. (8/23)
Juljr 29 filed $67,000,000 of 36-year debentures due Aug.
15, 1991.
—To

Proceeds—To reduce bank loans.

be

Underwriter

determined

by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley &
Co.; White, Weld & Co., Lehman Brothers and Union
Securities
to

be

195

Corp.

received

(jointly).
to

up

Bids—Tentatively expected

11:30

a.m.

(EDT)

on

Aug.

23 at

Broadway, New York, N. Y.

Pacific Telephone &

Telegraph Co.

July 29 filed 1,339,196 shares of
to be offered for

the

ratio

of

common

subscription by

one

new

share

stock (par $100)

common

for

each

(8/31)
stockholders in

six

shares

held

as
of Aug. 31: rights to expire on
Sept. 30. American
Telephone & Telegraph Co., the parent, owns 90.89%
of Pacific's outstanding stock and intends to
subscribe
for 1,199,849 of the new shares.
Price—At par.
Pro¬

ceeds—To

repay

bank

loans.

Underwriter—None,

if Pacific Uranium Corp., Seattle, Wash.
Aug. 3 (letter of notification) 2,500,000 shares of com¬
mon
captial stock (par one cent). Price—10 cents per
share.

ities.

Proceeds—For expenses incident to
mining activ¬
Office—229 Broadway North, Seattle,' Wash. Un¬

derwriter—None:

George,

shares

to

be

offered

through J. Ellis

President.

Pacific

Uranium

incident

expenses

to mining activities.
Reno, Nev. Underwriter

N. Virginia Street,

—Philip Gordon & Co., Inc., New York, N. Y.
Permian

June 2

For

Basin Uranium Corp.
(letter of notification) 640,000 shares of common,
Price—At par (10 cents per share).
Proceeds—

mining^ costs.
N.

querque,

Office—613 Simms Building, Albu¬

Mex.

Underwriter

—

Western

Securities

Corp., Salt Lake City, Utah.
if Professional
Aug.

1

common

share).

Acceptance Corp., Amarillo, Texas
(letter of notification) 4,000 shares of series C
non-voting stock.
Price — At par
($50 per
Proceeds — For working capital.
Office — 227

Paramount

Building,

Amarillo,

Texas.

Underwriter—

Prospect Hill Golf & Country Club, Inc.
July 8 (letter of notification) 11,900 shares of preferred
stock.
Price—At par ($25 per share).
Proceeds—For
swimming pool, club furnishings and equipment, golf
course and organization and develoment
expense. Office—Bowie, Md. Underwriter—L. L. Hubble & Co., Inc.,.
Baltimore, Md.

Pyramid Electric Co.

May 3 filed 50,000 shares of common
Price—To be supplied by amendment.

selling stockholders. Underwriter

—

stock

(par $1).

Proceeds

To

—

S. D. Fuller &

Co.,

New York.
Radium Hill Uranium, Inc., Montrose, Colo.
July 19 (letter of notification) 625,000 shares of commorb
stock (par one cent).
Price—32 cents per share. Pro¬
ceeds

For

incident to mining operationsMontrose, Colo. Underwriters—
General Inverting Corp., New York, N. Y., and Shaimarb
& Co., Denver, Colo.
—

expenses

Office—Bryant

Bldg.,

Rampart Uranium Co., Colorado Springs, Colo.
July 19 (letter of notification) 2,475,000 shares of com¬
mon

stock.

Price—At par (10 cents per share).

Proceeds

—For expenses

incident to mining operations. Office—
Mining Exchange Bldg., Colorado Springs, Colo. Under¬
writer—A1 J. Johnson & Co.,

same

address.

(J. B.) Co., Inc. (9/1)
Aug. 12 filed 4,590 shares of common stock (par $100)
and 4,590 shares of class B common stock (no par), of
if Rea

which 4,000 common shares are to be offered for sale to-

public at
shares
and

par

sued

to

be

James

spectively.

common

offered

B.

Rea

to

shares and

and

by

indebtedness,

Mrs.

Dr.

Rea.

for

Rea

590

employees other
$100

at

and

$1

per

The other 4.000 class B shares

Dr.

rendered

590

and

to

are

Mrs.

in

Proceeds—To

inventory

and

share,

are

consideration
repay

working

class

than
to

of

be

B

Dr..
re¬

is¬

services

short-term
capital and

other general corporate purposes. Office—Santa
Monica,.
Calif.
Underwriters—Smith, Barney & Co., New York;
William R. Staats & Co., Los Angeles, Calif.
ing—May be placed privately.
and

Offer¬

Savings Assurance Co., Mesa, Ariz.
Aug. 3 Getter of notification) 10,000 shares of common:
if Real

stock to be offered to contract holders

$2.1*5

per

working
Ariz.

share.

(oar $1). Price—
Proceeds—To expand business and for

capital.

Office—711

East

Main

Street,

Mesa,

Underwriter—None,

if Ret:ance Life Insurance Co. of Georgia
Aug. 5 (letter of notification( 12,000 shares of common
(par $5). Price—$25 per share. Proceeds—To in¬
crease
capital and surplus account.
Office — Candler

stock

Buildin?,
be

offered
Revere

Atlanta,

through
Realty.

Ga.
Underwriter—None; shares to
William August Lloyd, President.
Inc., Cincinnati, Ohio

March 8 fil^d $1 000,000 of 5%%

cumulative convertible

debentures due Jan. 1, 1980 and 25.000 shares of common
&

Oil

Corp.
June 6 (letter of notification) 3,000,000 shares of com¬
mon
stock (par two bents). Price—10/cents per
Proceeds
For mining expenses. Office
811 Boston
—

Proceeds—For
Office—206

Underwriters—Eastman, Dillon & Co.,

York.

shares

Uranium, Inc., Reno, Nev.
(letter of notification) 2,000,000 shares of com¬
stock (par three cents). Price—15 cents
per share.

None.

(8/24)

filed $8,500,000 of 10-year subordinate income
debentures, series A and B, due 1965, and 850,000 shares
of common stock (par one cent) to be offered in units

a

Securities

City, Utah.

stock.

July 21

construct

to mining operations.
Junction, Colo. Underwriter
Co., Denver 2, Colo, and Salt

Pelican Uranium Corp., Salt Lake City, Utah
May 25 (letter of notification) 300,000 shares of common
stock (par five cents).
Price—10 cents per share. Pro¬
ceeds— For mining
expenses.
Office — 688 East 21st
South, Salt Lake City, Utah.
Underwriter — TransWestern Brokerage Co., New
Orleans, La., and Salt
Lake City, Utah.

mon

purchase

Proceeds—For

repay

new

York,

Northwest

—Columbia
Lake

common

to

warrants

Price—25

warrant.

per

199,000 shares of

19,900

Northport Water Works Co.
Jur.e 23 (letter of notification) 4,438 shares of common
stock (no par) being offered for
subscription by stock¬
holders of record July 21 on the basis of one share for
each 3M> shares held (with an oversubscription
privi¬
lege); rights to expire on Aug. 19.
Pricp—$30 per
payable

incident

Aug. 4

machinery and working capital.
Office—383
St., Brooklyn, N. Y.
Underwriter—None.

share.

expenses

Office—530 Main St., Groad

if Penn-Utah

City, Utah.

it Nordic Plastic Co., Inc.
Aug. 9 (letter of notification)

•

&

repay

ditional

30

Sudler

June 30 filed 400,000 shares of common stock
common

Proceeds—

Electronic

•

Underwriter—Amos C.

same city.

Panama)

ic Narda Corp.
Aug. 8 (letter of notification)
stock

Thursday, August 18, 1955

Palestine Economic Corp., New York
July 1 filed 50,000 shares of common stock (par $25)
and $2,000,000 of five-year 5%
notes, series 1955. Price

—Rambo, Close & Kerner Inc., Philadelphia, Pa.; and
J. S. Hope & Co., Scranton, Pa.

•

Mitchell Mining Co., Inc., Mount Vernon, Wash.
May 13 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Address—P. O. Box 301, Mount
Vernon, Wash. Underwriter—Standard Securities Corp.,
Spokane, Wash.

i

of

preferred stock (par $5) and 20,000 shares
stock (par 10 cents).
Price—For preferred,

Alberta, Canada.

basis of

stockholders of Marion Power Shovel Co.

.

convertible

New

on

basis;
13,453 shares to common stockholders of Newport Steel
Corp. on a l-for-2.1 basis; 10,899 shares to common

-

Mortgage Associates, Inc., Philadelphia, Pa.
7 (letter of notification) 20,000 shares of 60-cent

Co., Inc.

on 1 %-for-1 basis; 127,623 shares to common stockholdera of New York Shipbuilding Corp. on a share-for-share

-

-

Office — 415 Paulsen
Underwriter—Pennaluna & Co.,

expenses.

June

shares to class A stockholders

of Devoe & Raynolds &
1% shares for each Devoe share;
6,621 shares to class B common stockholders of Devoe
,

(par

of $50 of debentures and five shares of stock.

Merritt-Chapman & Scott Corp., New York
June

of notification) 700,000 shares of com¬
10 cents). Price — 25 cents per share.

(letter

Proceeds—For mining
Bldg., Spokane, Wash.
same city.

mining activities.

Underwriter—Standard Securities Corp., Spokane, Wash.

14

stock

mon

...

—

Price—Par for debentures and $100 per
share for stock. Proceeds — To purchase real estate or
stock

fno pari.

interest therein.

Cincinnati, O.

Underwriter—Stanley Cooper Co., Inc.,
1
■
<-*

.

'

Volume 182

Number 5456

.

The Commercial and Financial Chronicle

..

^ Rio De Ore Uranium Mines, Inc.
Aug. 15 filed 3,000,000 shares of common stock (par one
cent).
Price—15 cents per share.
Proceeds—For ex¬
penses
incident to mining operations.
Office—Grand

Splendora Film Corp., New York (8/22)
July 27 filed 1,200,000 shares of common stock (par 10
cents). Price—50 cents per share. Proceeds—For equip¬

Junction, Colo.

and

for

Co.,

Inc., and McGrath Securities Corp., both of

N. J., on a

Underwriter—Tellier & Co., Jersey City,
best-efforts basis.
If 85% of issue is not sold,

monies will be refunded.

Stancan Uranium

(letter of notification) 6,U00,0uu snares of cap¬
(par one cent). Price—Five cents per share.

ital stock

Proceeds—For mining operations.
Office—530 Judge
Bldg., Salt Lake City, Utah. Underwriter—Mid Ameri¬
ca
Securities, Inc., of Utah, 26 W. Broadway, Salt Lake
City, Utah.

Royal Register Co., Inc., Nashua, N. H.
July 20 (letter of notification) 25,000 shares of class A
common stock (par $1).
Price—$10 per share. Proceeds
—For purchase of materials and
supplies; capital equip¬
ment and reduction

ital.

Lamont &

of note

debt; and for working cap¬
St., Nashua, N. H. Underwriter—
Co., Boston, Mass.

Office

1

—

Pine

Royal Uranium Corp.
May 26 (letter of notification) 200,000 shares of
Stock

common

Price—At market (total not to
Proceeds—For working capital. Office
—Walker Bank Bldg., Salt Lake City, Utah. Underwriter
—Whitney & Co., same city. No general offer planned.

$150,000).

★ Ryder System,.Inc., Miami, Fla.
29 (letter of notification) 13,950 shares of

July

stock

mon

For

(par $5).

corporate

com¬

Price—$10

per share.
Proceeds—
Office—1642 Northwest 21st

purposes.

Terrace, Miami, Fla.

New

Corp., Toronto, Canada

April 18 filed 200,000 shares of cumulative convertible
preferred stock, series A (par one cent). Price—To be
supplied by amendment. Proceeds—For exploration and

development expenses and for general corporate pur¬
poses.
Underwriters—Gearhart & Otis, Inc. and F. H.
Crerie & Co., Inc., both of New York.
^Standard Minerals, Inc., Las Vegas, Nev.
3 (letter of notification) 295,000 shares of

Aug.

assessable

Proceeds

stock.

common

—

For

Office ^-120

expenses

S.

Third

Price—At par

incident

to

non¬

($1 per share).

Underwriter—None.

Street, Las Vegas, Nev.

Under¬

writer—None.

Strevell-Paterson Finance Co.

(par 50 cents)

ness—Manufacturers

$200,000 of 6% subordin¬
6,000 shares of common
stock (par $1) to be offered in units of a $1,000 de¬
benture and 30 shares of stock. Price—$1,075 per unit.
Proceeds—For working capital and general corporate

in

purposes.

(letter of notification) 40,000 shares of common
stock.
Price—At par ($1 per share).
Proeecds—For
working capital and general corporate purposes.
Busi¬
Aug. 8

and distributors of religious goods
lithographic and other media forms.
Office—c/o
Greystone Hotel, 91st Street at Broadway, New York
24, N. Y.
Underwriter—None.

ated

debentures

burg,

due

1965

and

Underwriter—Beil & Hough, Inc., St. Peters¬

Fla.

Sun

Etock

Hotel, Inc., Las Vegas, Nev.
filed (as amended) 3,750,000 shares of com¬
(par one cent). Price—$2.50 per share. Pro¬
ceeds—To construct hotel and for working capital. Un¬

related activities.

derwriters—Golden-Dersch & Co., Inc., New York;
Coombs & Co. of Las Vegas, Inc., Las Vegas, Nev.

Feb.

^Saint Anne's Oil Production Co.

May 9 (letter of notification) 20,000 shares of

common

Office—Northwood, Iowa. Underwriter

—None.

Regis Paper Co.,

New York

market.

of common stock (par $5)
being offered in exchange for common stock of General
Container Corp. on basis of 2% shares of St. Regis for

Offer, which will expire on Aug. 26,
obtaining 80% of outstand¬

is conditioned upon St. Regis

ing General stock.

Ohio,

The Cleveland Trust Co., Cleveland,

is depository

and

exchange

and

it Supervised Shares, Inc., Des Moines, la.
Aug. 15 filed 300,000 shares of capital stock.
Price—At

June 28 filed 329,327 shares

General share.

16

stock

mon

(par $1) to be first offered to stockholders. Price
—$6.25 per share. Proceeds — For oil and mineral and

one

agent.

Underwriter

Proceeds—For investment.

it Susan B. Uranium Corp., Carson City, Nev.
Aug. 11 (letter of notification) 300,000 shares of non¬
assessable common stock.
Price—At par ($1 per share).
Proceeds—For mining expenses.
Office—Virginia Truck
Bldg., Carson City, Nev.
Underwriter—Coombs &ICo.
of Las Vegas, Nev.

—None.

Sanitary Products Corp., Chicago, III.
June 27 (letter of notification) 15,000 shares of common
stock (par $1).
Price—At market (estimated at $1.62y2
to

$2

share).

per

Proceeds—To

selling stockholder.
Underwriter—

Office—10 So. LaSalle St., Chicago, 111.
Cruttenden

&

Co., Chicago, 111.

stock

(par

Price

cent).

10 cents per share.
Office—416 Indepen¬
dence Bldg., Colorado Springs, Colo.
Underwriter—Co¬
lumbia Securities Co., Denver, Colo.
one

—

Proceeds—For mining operations.

★ Shacron Oil Corp;, Washington, D. C.
Aug. 2

(letter of notification)

150,000 shares of class A
and 75,000 shares of class

non-voting stock (par $2)
B voting stock (par $1) to
class A shares and
Proceeds—For

fice—1500
C.

D.

one

be offered

in

units of two

class B share.

Price—$3 per unit.
incident to oil activities.
Of¬

expenses

Massachusetts

it Target Uranium Co., Spokane, Wash.
Aug. 12 (letter of notification) 1,000,000 shares of non¬
assessable stock (par five cents).
Price—20 cents per
share.

Proceeds

Avenue,

N.

W.,

Washington,

Co., Denver, Colo.
May 11 (letter of notification) 6,000,000 shares of commoi stock (par one cent).
Price—Five cents per share.
Proceeds—For mining operations. Office—1890 S. Pearl
St., Denver, Colo. Underwriter — Carroll, Kirchner &
Jaquith, Inc., same city.
Teenager Cosmetics, Inc., Las Vegas, Nev.
July 18 (letter of notification) 287,000 shares of common
stock. Price—At par ($1 per share) in units of 100 shares
each.
Proceeds—For current liabilities, overhead and
operational expense, advertising, research, development
and manufacturing.
Office—221 West Charleston Blvd.,
Las

Vegas, Nev.
Las Vegas, Nev.

Underwriter—None.

June 20

ble

holders.

due

Sept.

denominations

of

ditional

outlets

retail

$500

1,

each).
and

Price—At par (in
Proceeds—To open ad¬

1975.

for

working capital.
Busi¬
ness—Operators of retail card shops.
Office—195 Broad¬
way, Paterson, N. J.
Underwriter—None.

stock

(letter of notification)

9,200 shares of common

(par $5) to he offered for subscription by stock¬

Price—$30 per share. Proceeds—To increase
working capital for agency expansion. Office — 1409
Magnolia Ave., Knoxville, Tenn. Underwriter—Jesse C.
Bowling, 16 M Street, Bedford, Ind.

Shumway Uranium, Inc., Moab, Utah
June 20 (letter of notification) 1,200,000 shares of com¬
mon
stock (par one cent).
Price—25 cents per share.

Texas Eastern Transmission Corp.
July 25 filed 273,906 shares of common stock (par $7)
being offered in exchange for shares of capital stock
of Texas Eastern Production Corp. in the ratio of one

Proceeds—For

share of Transmission

Moab, Utah.

duction

ver,

mining expenses. Office — 6 Kirby St.,
Underwriter—Skyline Securities Inc., Den¬

on

Colo.

Silvaire
June
mon

Aircraft

&

Uranium

own

(letter of notification) 3,000,000 shares of com¬
stock (par one cent).
Price —10 cents per share).

mining operations.

Colo.

Underwriter—Carroll,
Denver, Colo.

Office—Fort

Kirchner

&

Collins,
Jaquith, ,Inc.,

Smith-Dieterich

Corp.
July 12 (letter of notification) 8,677 shares of capital
Etock
(par $2.50)
to be offered for subscription by
stockholders

or

on

basis of

one new

share for each 10 shares

held.

Price—$5.50 per share. Proceeds—To obtain addi¬
patents; to repay certain loans; and working
capital. Business—Photographic equipment. Office—50
Church St., New York. Underwriter—None.
tional

Spirit Mountain Uranium, Inc., Cody, Wyo.
July 29 (letter of notification) 25,200,000 shares of com¬
mon stock. Price—At par (one cent per share). Proceeds
■—For expenses incident to mining activities.
Office—
1507-8th Street, Cody, Wyo. Underwriter—Utah Uranium
Brokers, Las Vegas, Nev.




stock.

The

before Sept.

duction

Co.

17

Proceeds—For

dent.

■

>•

,

Company

80%

effective

or more

★ Three Forks Oil & Uranium Co.
*
Aug. 8 (letter of notification) 2,000,000 shares of common
stock (par two
cents). Price—15 cents per share.
Pro¬
ceeds—For mining expenses.
Office—426 First National
Bank Bldg.,
Denver, Colo. Underwriter—None.
^ Thunderbird Ranch, Riverside County, Calif.
Aug. 1 (letter of notification) 1,500 shares of capital
stock (par $100).
Price—$200 per share. Proceeds—To
pay off long-term indebtedness. Address—P. O. Box Y„
Palm Springs, Riverside
County, Calif. Underwriter—
None.

Thunderbird Uranium Corp.
June 9 (letter of notification) 3,000,000 shares of common,
stock.
Price—At par (10 cents per share).
Proceeds—

mining

stock for each 2.6 shares of Pro¬

offer

is

contingent upon the tender
12 of at least 263.402 shares of Pro¬

so

that Transmission

will thereafter

of Production capital stock.

Statement

Aug. 5.

Texas Toy Co.,

Houston, Texas
July 8 (letter of notification) 300,000 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For payment of accounts payable of operating company;
expansion and working capital. Office—2514 McKinney
Ave., Houston, Texas.
Inc., Houston.

Underwriter—Ray Johnson & Co.,

Denver, Colo.
■

•

'

Uranium Co.,

Denver, Colo.
5,960,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining expenses.
Office — 407 Denver
15

(letter of notification)

National
ter

Bldg., Denver, Colo. Underwriter—Floyd Kos& Co., same address.

Texboard, Inc., Dallas, Texas
17 filed $1,500,000 of 6% series A debentures due
lerially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,000
of 6% series B convertible debentures due serially from
Jan.

*

,

i

.

.

.

it Traffic Controls, Inc. of Delaware
Aug. 12 (letter of notification) 295,000 shares of capital
stock.

Price—At

share).
Proceeds—For
working capital.
Office—
82 St. Paul St., Rochester 4, N. Y.
Business—Produces

inventory,

par

equipment

"Phototraffic"

($1

per

and

cameras.

Underwriter—None.

it Trans-Mountain Uranium Co., Inc.
Aug. 1 (letter of notification) 2,950,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For expenses incident to mining activities
Office—2340 East Hiway 24, Colorado Springs, Colo.
U nderwriter—N one.

Trans-National

Uranium & Oil Corp.

July 1 filed 2,000,000 shares of common stock (par 20
cents). Price—To be supplied by amendment (expected
at $1.50 per share). Proceeds—To acquire part of prop¬
erties presently subject to option in favor of, company,
and for expenses incident to mining and oil activles.
Office
Dallas, Tex. Underwriter — Garrett Brothers,
Inc., Dallas, Tex.
—

Triangle Mines, Inc., Salt Lake City, Utah
May 3 (letter of notification) 100,000 shares of common
stock. Price—At par (50 cents per share). Proceeds-—
For mining operations. Office — 506 Judge Bldg., Salt
Lake City, Utah. Underwriter — Lewellen-Bybee Co.,
Washington, D. C.
Tri-State Natural Gas Co.,

Tucson, Ariz.

July 6 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For expenses incident to oil and gas activities. Office—
15 Washington St., Tucson, Ariz.
Underwriter—Frank
L. Edenfield & Co., Miami, Fla.
it Troy Copper & Uranium Corp., Las Vegas, Nev.
Aug. 10 (letter of notification) 300,000 shares of non¬
assessable common stock.
Price—At par ($1 per share >.
Proceeds
For mining expenses.
Office — 710 South
—

Fourth

Underwriter—None.

St., Las Vegas, Nev.

Tungsten Mountain Mining CoH Fallon, Nev.
June 8 (letter of notification) 149,800 shares of common
stock (par $1). Price—$1.50 per share. Proceeds—For
mining operations. Address — P. O. Box 456, Fallo«r
Churchill County, Nev. Underwriter—H. P. Pratt & Co.,
Seattle, Wash.
Two

Jay Uranium Co., Salt Lake City, Utah

May 16 (letter of notification) 3,000,000 shares of com¬
stock (par three cents). Price—10 cents per share.
Proceeds—For mining expenses.
Office—32 Exchange

mon

Salt Lake City, Utah. Underwriter
Co., Tulsa, Okla.

Place,

—

Western

Investment

States

-

it Tyrex Drug & Chemical Corp.
Aug. 11 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For research and product

ufacturing,
—66

development, ingredient man¬

materials and working capital.
Office
St., Hoboken, N. J.
Business—To manu¬
distribute chemical products, pharmacat

raw

Hudson

facture

and

specialities and sanitary devices. Underwriter—None.
Ucon

Uranium Corp.,

Salt Lake City, Utah

(letter of notification) 5,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining costs.
Office—406 Judge Build¬
June 2

Underwriter—Empire Secu¬

ing, Salt Lake City, Utah.
rities Corp., Las

Vegas, Nev.

U-Kan Uranium & Oil Co.,

Salt Lake City, Utah

May 5 (letter of notification) 260,000 shares of commcs
(par 10 cents). Price—$1 per share. Proceeds—
For mining expenses.
Office — Judge Bldg., Salt Laka

stock

City,

Utah.

Underwriter

—

Northern Securities, Inc.*

Seattle, Wash.
Union of Texas Oil Co.,

Houston, Texas

12 - (letter of notification) 61,393 shares of com¬
mon stock (no par).
Price—$1.25 per share. Proceeds—
To reduce bank loans, and for development costs arid

July

other
Texas Western Oil &

June

Office—915 Simms Bldg., Albu¬
Underwriter—Hicks, Newton & Co., Inc.,

expenses.

querque, N. M.

Underwriter—Utah Uranium Brokers,

Tennessee Life & Service Insurance Co.

it Sheldon Enterprises, Inc.
Aug. 5 (letter of notification) $125,000 of 7% converti¬
debentures

For

mining expenses.
Office — 726
Paulsen Bldg., Spokane, Wash.
Underwriter — Percy
Dale Lanphere, Empire State Bldg., Spokane, Wash.
—

Tasha Oil & Uranium

Santa Fe Uranium & Oil Co., Inc.
May 26 (letter of notification) 2,959,500 shares of com¬
mon

facturing plant near Orange, Tex., for the purpose cr
manufacturing insulation building products.
Under¬
writer—None. C. F. McDougal of Dallas, Tex., is Presi¬

For

shares of common
being offered for subscription by
stockholders of record July 26 at 70 cents per share on
the basis ot one new share lor each 10 snares held (with
an oversubscription
privilege); rights to expire at noon
on
Aug. 22.
Unsubscribed shares are to be publicly
offered, commencing Sept. 10 at $85 per 100 shares.
Proceeds—For working capital.
Office—76 West Sixth
South St., Salt Lake City, Utah.
Underwriter—Harrison
S. Brothers & Co., same city.
stock

★ Sun Finance & Loan Co.
Aug. 1 (letter of notification)

it Sacred Heart Reproductions Corp.

St.

1, 1962 to Aug. 1, 1966. Price—To be supplied by*
amendment. Proceds—To construct and operate a manu¬

mining activities.

June 16 (letter of notification) 352,000

(par five cents).

exceed

accessories; for financing film productions;
working capital. Underwriters—J. H. Lederer

Feb.

York.

Rocket Mining Corp., Salt Lake City, Utah

July 15

and

ment

*41?

(705)

corporate

purposes.' Underwriter—Mickle & Co.,

Houston, Texas.
United American

Investment Co., Atlanta, Ga.

July 19 filed 3,500,000 shares of common stock no
Price—$2 per share. Proceeds—For organization of

par.

twos

compaies, to be named United
American Life Insurance Co. and Tourists Indemnity Co.;
balance to be used to engage in mortgage loan business
and related fields. Underwriter—None.
wholly-owned insurance

Continued

on

page

42

42

The Commercial and Financial Chronicle

(706)

Continued,

from

Universal

Oil

it Western America Uranium Exploration Corp.
(letter of notification) 300,000 shares of capital
(par 10 cents). Price—$1 per share. Proceeds—

41

page
&

For expenses

incident to mining activities. Office—216
Building, Billings, Mont. Underwriter—None.

Fratt

mon

it Campbell Chibougamau Mines, Ltd.
15 it was reported a secondary offering

Aug.

—

it Western Mineral Development & Mining Co.
(letter of notification) 2,950,000 shares of

Aug. 4
I

Universal

Service

Corp., Inc., Houston, Texas

July 8 filed 500,000 shares of common stock (par two
mills). Price—$2.50 per share.
Proceeds—For equip¬
ment, mining costs, oil and gas development, and other
corporate purposes.
Uranium

Underwriter—None.

Mining Co., Wallace, Ida.
April 18 (letter of notification) 1,750,000 shares of
stock.

mon

Price

10

—

mining operations.

cents

Address

Box

—

Underwriter—Wallace Brokerage
Uranium

share.

per

Co.,

709, Wallace, Ida.
same city.

June 13 filed $600,000 of Grubstake Loans to be offered
in

amounts

be invested

for

of

$25

multiple thereof/ Proceeds—75%
Savings bonds and the balance
and exploration and development e x-

in

or

U.

S.

equipment
Underwriter—None.

penses.

Uranium Technicians

Corp., Salt Lake City, Utah
notification) 30,000,000 shares of
(no par).
Price—One cent per share.
Proceeds
For mining activities. Office — 1101 South
State St., Salt Lake
City, Utah.
Underwriter—AnderJune

30

(letter

of

stock

common

the

(par
For

—

Office—468

one

Investment Co., same city.

USeven
June 28

Corp., Stockton, N. J.
(letter of notification) 1,000,000 shares of com¬
(par one cent). Price—25 cents per share.

stock

mon

Proceeds

For equipment, drilling
costs, and working
Business—To explore, develop and operate ura¬
nium mining properties. Address—P. O. Box
99, Stock¬

Cavendish

Wet Mountain

Mining, Inc.

April

(letter of notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds
For mining activities.
Office — 105% East
Pikes Peak,
Colorado Springs, Colo.
Underwriter —
Hicks, Newton & Co., Inc., Denver, Colo.

sale

stock (par 16% cents). Price—50 cents
per share.
Pro¬
ceeds—For expenses incident to
mining activities. Office

Yellow Circle

bonds

due

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Union Securities Corp. and Smith, Barney & Co.
(jointly); Kidder, Peabody & Co.; Salomon Bros. &
Hutzler; White, Weld & Co. and Stone & Webster Se¬
curities Corp, (jointly); The First Boston
Corp.; Lehman
Brothers and Bear, Stearns & Co.
(jointly). Bids—To be

(EDT)

on

mining

Proceeds—To repay bank loans and for construction
pro¬
gram. Underwriter—To be determined
by competitive

bidding. Probable bidders: Lehman Brothers; Union Se¬
curities Corp. and Smith,
Barney & Co. (jointly); Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Blyth

&

Co., Inc.; The First Boston
Corp.
Bids—To be received up to noon (EDT) on
Sept. 13 at Two Rector Street, New York, N. Y.
'

stock.

Uranium Co., Las Vegas, Nev.
(letter of notification) 3,000,000 shares of capital
Price—At par (10 cents per
share). Proceeds—

For

mining
Vegas, Nev.
city.

expenses.

Office—210

Underwriter—Lester

N.
L.

Third

St.,

LaFortune,

Las
same

mon

stock

(par

one

cent).

Price—Two cents per share.

Proceeds—Expenses incident to mining operations. Of¬
fice—Lytle Building, Vale, Ore. Underwriter—Hansen
Uranium Brokerage, Salt Lake
City, Utah.
Vactron Corp.
May 13 (letter of
mon

notification)

300,000 shares

of

L.

tures.

England,

redeem

38,280 shares of outstand¬

ing $5 cumulative preferred stock,

California,

N. A.,

San

Francisco,

Aug. 10 it
vote

was

announced stockholders

approving

on

the

issuance

of

Sept. 13 will

on

52,200

additional

shares of capital stock
fered

for

1955

held;

per

plus.

(par $20), which will first be of¬
subscription by stockholders of record Sept.
on
the basis of one new share for each 10

rights to expire

share.

Proceeds—To

Underwriter—Blyth

&

on

Oct.

7,

increase

Co.,

1955.

capital

Inc.,

San

Price—
and

sur¬

Francisco,

Calif.

Blackhawk Fire & Casualty Insurance Co.
April 5 it was reported company plans to issue and sell
200,000 shares of common stock. Price—Expected at $5

com¬

mon

stock

(par

Vas

Uranium

June 20 (letter of
mon

stock.

&

Drilling Co., Monticello, Utah
notification) 2,000,000 shares of com¬

Price—At par (10 cents per share).

—For mining operations.
rities Inc., Denver, Colo.

Proceeds
Underwriter—Skyline Secu¬

St., Salt Lake City, Utah.
13 filed

296

shares of

common

stock

(par $5,000).

Proceeds—To purchase plywood mill of Walton
Plywood
Co., Inc., etc. Underwriter—Albert Walter Braedt.




Conveniently located in the heart

'

Continental Aviation &

Engineering Co.
was
reported company plans sale in near
$2,000,000 convertible debentures. Underwrite*
—Van Alstyne, Noel & Co., New York.

June

it

13

future of

it Continental Aviation & Engineering Corp.
Aug.

11 it

vote

was

announced

stockholders

on

Sept. 7 will

approving a proposal for additional financing.
Underwriter—May be Van Alstyne, Noel & Co., New
on

York.

Continental Can Co., Inc.

April
not

18,

preferred

to exceed

other

date

thereof.
any

stockholders

approved

creation

of

additional

an

indebtedness

making

$25,000,000 of debentures or
maturing later than one year after
The company has no present plans

additional

Sachs

Daitch

April
the

of New York's great financial

distiict, Pandick Press, Inc. is "open for business" 24 hours
7

days

a

a

day,

week.

&

Co.

borrowings.

and

Lehman

Underwriters—

Brothers, both of

28

Crystal Dairies, Inc.
stockholders

authorized

approved

common

stock

a

proposal

(par

$1)

to

from

increase
500,000

shares to 1,000,000 shares to provide for future
financing
and expansion. Underwriter—Hirsch &

Co., New York.

it Delaware Power & Light Co.
July

Stuart

26,

Cooper, President, announced that the
is presently discussing arrangements for tem¬
through banks and is planning the
subsequent issuance of bonds and equity securities.. It

company

MGH j 4 ©ijillf Service is
the finest and

one

most

of the

reasons

"Printed

porary

by Pandick"

complete printing service available.

appears

of

financing

that the first step in the permanent financing
will take place sometime late this fall.

the program

The

present

construction

program includes two plants
approximately $40,000,000. Underwriters
determined by competitive bidding.
Probable
bidders: (1) For bonds—Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Co. and Salomon
Bros.
& Hutzler
(jointly);
Lehman
Brothers; Union Securities Corp.; The First
Boston Corp. arid Blyth & Co., Inc. (jointly); White,
Weld & Co. and Shields & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
(jointly); W. C. Langley & Co. (2) For common stock

which will cost

^andic/fjpress. Inc.
Eitabliibed 192}

Washington Plywood Co., Inc., Lowell, Wash.

June

NIGHT & Ml

gt/arc-'ees

Wabash Uranium
Corp., Moab, Utah
June 10 (letter of
notification) 10,000,000 shares of capi¬
tal stock.
Price—At par (three cents per share). Pro¬
ceeds—For mining expenses.
Underwriter—Moab Biokerage Co. and National Securities, Inc., 368 South State

some

New York.

com¬

—

year.

expects

Consolidated Uranium Mines, Inc.
July 23, 1954, stockholders authorized issuance and sale
of not to exceed $6,000,000 convertible debenture bonds
in connection with the acquisition of Uranium Mines of
America, Inc. stock. Public offering of $2,000,000 bonds
expected early in 1955. Underwriter — Tellier & Co.,
Jersey City, N. J.

Goldman,

one

For

—

$40,000,000 to $50,000,000 bonds

current

Inc.

to sell
time during
Proceeds—For construction program.
company

Stanley & Co.; The First Boston Corp.

for

Uranium, Inc., Salt Lake City, Utah

cent). Price ■— 10 cents per share.
mining expenses. Underwriter
I. J.
Schenin & Co., New York. Name
Change—The company
was
formerly known as San Miguel Uranium, Inc.
Proceeds

of New York,

announced

was

Underwriter—To be determined by competitive biddings
bidders: Halsey, Stuart & Co. Inc.; Morgan

the

—

3,000,000 shares of

it

14

Probable

Calif.

(9/13)

Co.

Consolidated Edison Co.

now

Proceeds—To

Edison

should be
financing.
new construction, which, it is estimated,
will cost about $125,000,0000 in 1955.
Underwriters—
For last equity financing were The First Boston Corp.
and Glore, Forgan & Co.

the

Bangor & Aroostook RR.
Aug. 1, the ICC granted exemption from competitive
bidding of an issue of $4,000,000 40-year income deben¬

Morgan Stanley &
Registration—Expected

Inc.;

v Proceeds—For

President, announced that the
considering the sale to the public of a
small amount of common stock
early next year. Under¬
writers—Probably Union Securities Corp. and Smith,
Barney & Co., both of New York.
are

Stuart & Co.

Underwriter
bidding.
Probable

Aug. 25

from

1, B.

by competitive

Jan. 24, Willis Gale, Chairman, announced it
Fall before the company undertakes its next

Co.

stock.

Vanura

for construction program.

Bids—Planned for Sept. 21.

June

Price—At par ($1 per
share). Proceeds—To
manufacture, process, rebulid and market television pic¬
tures tubes, etc. Underwriter
Zone Investments Co..
Fort Worth, Texas.

June 16 (letter of notification)

and

determined

Commonwealth

Oct. 25.

$70
com¬

loans
be

Co.

Brothers; Blyth
Co., Inc. and Smith, Barney & Co. (jointly); Equitable
Securities Corp. and Union Securities Corp.
(jointly);
White, Weld & Co. Bids—Expected to be received on

13,

Diata, Inc., Vale, Ore.
July 8 (letter of notification) 10,000,000 shares of

bank

on

tive bidding. Probable bidders: Lehman

Electric

Of¬

was

—To

Power

City

3,500,000 shares.

Inc. (9/21)
reported company plans to issue and sell
$40,000,000 of debentures due 1980
Proceeds—To repay

July 25 it

&

Atlantic

to

Columbia Gas System,

Box

Securities

& Light Co.
(10/25)
reported company plans to issue and sell
about 80,000 shares of cumulative preferred stock (par
$100). Proceeds—To repay bank loans and for new construction. Underwriter—To be determined by competi¬

shares

Utore Uranium &

O.

3,250,000

Chicago, Milwaukee, St. Paul & Pacific RR.
13 stockholders approved the creation of an issue
of $60,000,000 5% income debentures, series A. due Jan. 1,
2055, being offered in exchange for 600,000 shares of
outstanding 5% $100 par preferred stock, series A, on a
par for par basis; offer commenced Aug. 1 and will run
through Aug. 31.
Dealer-Manager—Merrill Lynch,
Pierce, Fenner & Beane, New York.

Proceeds

Address—P.

from

July

was

it Bank of

Utah Southern
June 6

activities.

stock

common

bidders—Halsey,

Aug.

Utah Power & Light Co.,
(9/13)
<*' *
July 26 filed 177,500 shares of common stock (no par).

oil

and

Power Co.

Maine

31, W. F.

fering—Probably in September.

Prospective Offerings

directors

(jointly);

mining equipment
Underwriter—James

concentrating mill,

a

underground development.

$10 (probably to stockholders) in the latter part of
Proceeds—For construction program. Underwriter
—May be determined by competitive bidding. Probable
bidders: The First Boston Corp. and Coffin & Burr, Inc.
(jointly); Harriman Ripley & Co. Inc.; Blyth
Co., Inc.
and Kidder, Peabody & Co. (jointly). Meeting—Stock¬
holders on May 11 voted to increase the authorized

10,000,000 shares of capi¬

Price—At par (two cents per share).

plans issue and
million dollars.

1955.

Co.

348, Newcastle, Wyo. Underwriter—Empire
Corp., Salt Lake City, Utah.

Sept. 13 at Two Rector

Street, New York, N. Y.

Beane

Uranium

(letter of notification)

Arkansas

Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined
by com¬

noon

several

of

par

York Oil & Uranium Co.
June 3

May 27 it

1985.

to

issue

Corp.

company

Wyman, President, stated that company
plans to issue and sell some additional common stock,

July 22 (letter of notification) 5,000,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds— For
mining expenses. Office — 223 Petroleum
Building, Salt Lake City, Utah. Underwriter—Morgan
& Co., same city.

Co., New Orleans, La.

Utah Power &

received up

Mines

announced

debenture

a

Central
Dec.

Wicker-Baldwin Uranium Mining Co.
May 26 (letter of notification) 900,000 shares of cdmmon
stock.
Price—At par (25 cents per share).
Proceeds—
For mining expenses. Office—616 Sixth
St., Rapid City,
S. D. Underwriter—Driscoll-Hanson, Inc., same
city.

■—Greyhound Terminal Building, West Temple & Soutn
Temple Streets, Salt Lake Cit.y, Utah.
Underwriter—

July 26 filed

on

Anthony Securities Corp., New York.

Uranium, Inc., Salt Lake City, Utah
June 9 (letter of notification) 2,900,000 shares of capital
stock (par 2Vz cents).
Price—10 cents per share. Pro¬
ceeds—For mining expenses.
Office—1030 South Sixth
West St., Salt Lake City, Utah.
Underwriter—J. W.
Hicks & Co., Inc., Denver, Colo.

—For

+ Utah-Arizona Uranium, Inc., Salt Lake City, Utah
Aug. 1 (letter of notification) 600,000 shares of common

Light Co. (9/13)
$15,000,000 of first mortgage

of

Uranium

was

Proceeds—For

Horse

White

tal stock.

Underwriter—None.

Brokerage

it

19

and for

—

Trans-Western

undertaking

Underwriter—None.

Colo.

capital.

ton, N. J.

stock will be registered with

common

Business—Company,

mining

copper

expenses

—

son-Hackett

.

of about

recently formed, is a
Merrill Island, Quebec,
Canada.
Underwriter—Allen & Co., New York. Offer¬
ing—Not expected for four or five weeks.

cent). Price—10 cents per share.
incident to mining activities.
Independence Building, Colorado Springs,

mon stock
Proceeds

SEC.

—

com¬

Proceeds—For

Properties, Ltd., Virginia City, Nev.

to

150,000 shares of
com-

June 29

Prince

Mutual In¬
M.

Co., Rockford, 111.
Underwriter— Arthur
Krensky & Co., Inc., Chicago, 111.
surance

stock

Corp.
/
July 26 (letter of notification) 5,9»8,000 shares of com¬
stock (par one cent).
Price—Five cents per share.
Proceeds
For mining operations.
Office — 7900 West
Colfax Avenue, Denver, Colo. Underwriter — Columbia
Securities Co., Denver, Colo.

Thursday, August 18, 1955

.

Proceeds—To acquire Blackhawk

share.

per

Aug. 4

Uranium

.

.

7? THAMES ST., NEW YORK 6
WO.lh 4-2900

NY 1-3167

'

71 CLINTON ST., NEWARK, N. J.
MArkct 3-4994

—To

be

olume 182

Number 5456

hich

may

"ngJey

dc

be

.

..

C.
(jointly);
lauer,
Peaoody & Co. and Merrill Lynch, Pierce,
nner
& Beane (jointly); Carl M. Loeo, Rhoades &
o.;
Blyth & Co., Inc. and The First Boston Corp.
ointiy); White, Weld & Co. and Shields & Co. (joint); Lehman Brothers.
(3) On preferred stock—Blyth
Co., mc. ana The First Boston Corp. (jointly); White,
eld
&
Co.
and
Shields
&
Co.
(jointly);
Lehman
first

Co.

offered

to

stockholders)—W.

Securities

Union

ana

Corp.

rothers; W. C. Langley & Co. and Union Securities
orP- (jointly); Morgan Stanley & Co.
Derrver

National

Colo.
ne 30
it was announced that company plans to offer
its stockholders the right to subscribe for 50,000 addional shares of capital stock (par $10) on the basis of
e

Denver,

Bank,

share for each four shares held.

new

Price—$30 per

Proceeds—To increase capital and

are.

Edison Co.

Detroit

stockholders

2

ay

bout

stock dividend.

25%

g and

$60,000,000

without

rs

of

Lunvertiole

ci

uei

approved

convertible

debentures

authorizing

proposal

a

Previous

debentures.

was

to stockhold-

made

Steel

Corp.

plan which will include the
uhlic sale of $30,000,000 15-year first mortgage bonds
nd the sale to present common shareholders of 503,000
dditional
asis

shares

(with

of

a

common

stock

oversubscription

an

on

a

ediately

prior

to

privilege).

Price—Of

the offering.
Proceeds—To retire
held by RFC in amount of $38,180,

00, through payment of $32,180,000 in cash and issuance
f $6,0C0,C00 in 6% cumulative preferred stock at par>
$100 per share); the remainder will be used for work-

Underwriter—Halse.y, Stuart & Co. Inc;y
Offering—Expected late in Sep-

capital.

ng
ew

Yoik and Chicago.

Stockholders to vote Sept. 15.

ember.

Aug.

April 25 it was announced company,

privately

ing

Seattle, Wash.
May 23 it was reported company may do some financing
some time in the future.
William D. Bost of Whitcomb
& Co., New York, is Chairman of the Board.
International Resources

that corporation,

announced

it

was

to

stockholders

of Allen

B.

following

Mont Labora-

Du

1,000,000 shares of common stock as a
ividend, contemplates that additional shares will be
fl'ered to its stockholders.
This offering will be unot

inc.

ones,

erwritten.

ancing

some

Essex

& Co. and Van Alstyne, Noel
Laboratories class A stock fi-

Kuhn, Loeb
Du

Mont

years

ago.

handled

Co.

competitive bidding. Probable bidders;
alsey," Stuart & Co. Inc.; The First Boston Corp.;
idder, Peabody & Co. and White, Weld & Co. (jointly);
lair & Co. Inccorporated. Offering—Expected this Fall.
determined by

Power

pril 14 it
tween

was

announced company may issue and sell
and $12,000,000 of first mortgage
determined by competitive

$10,000,000

Halsey, Stuart & Co. Inc.;
Lynch, Pierce, Fener & Beane
(jointly): Lehman Brothers and Blyth &
o.. Inc.
(jointlvV Glore Forgan & Co.; and The First
oston Corp. Offering—Expected late in 1955 or early
Probable bidders:

idding.

17,

idder, Peabody & Co. and Merrill

loans.

bank

Co., Detroit, Mich.
reported that following a probable 10split, an offering of approximately 4.000.00C
shares will be made to the public. Price—Expected

new

to

Motor

15

it

was

slock

be

around

Foundation.

$60 per share.
Proceeds — To the
Offering—Probably not until "latter

Ford
part

of 1955, if then."
Gulf States Utilities Co.

May

16

it

was

reported

company

may

issue and sell

bonds if market condition*
permit. .Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Lehman
Brothers;
Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co. (jointly); Salomon Bros
& Hutzler and Union Securities Corp. (jointly); Kuhn.
Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
first

$10,000,000

mortgage

on

proposal

on

Sept. 6).

Keystone Wholesale Hardware Co., Atlanta, <k*
was stated that the company plans at a late]
date to offer additional shares for sale nationally.
Ai

offering of 16,666 shares of common stock was recently
made to residents
of Georgia only at $3 per share
Office—517

Stephens St., S.W., Atlanta, Ga.

★ Laclede Gas Co.
Aug. 8 it was stated company plans sale of about $10,000,000 convertible first preferred stock to stockholders.
bidders:

Lehman

Brothers,

Merrill

bidding.
Lynch,

Pierce, Fenner & Beane and Reinholdt & Gardner
(jointly); White, Weld & Co.; Stone & Webster Secu¬
rities Corp.; Blair & Co. Incorporated. Bids—Probably
fall.

this

'

^ Lamson & Sessions Co. (9/19-23)
Aug. 15 it was reported company plans to issue and
$3,000,000 of convertible preferred stock.

writer—McDonald & Co., Cleveland,

Ohio.

sell
Under¬

Registration

—Expected late in August.

ic Lanolin Pius,

Inc.

Aug. 15 it was reported company
from Consolidated

of

September

(name to be changed

Cosmetics, Inc.) plans f-egistration in

about

200,000

shares

of

common

stock

file

a

9

it

Developments, Inc., Cleveland, Ohio
announced that company plans soon to

was

registration

statement with the SEC covering a

proposed issue of 600,000 shares of common stock. Pro¬
ceeds— For general corporate purposes.
UnderwriterGeorge A, Searight, New York,

will head group.

Island Lighting Co.
April 23 it was announced company plans to sell an
issue
of
$15,000,000 first mortgage bonds, series H
due 1985.
Proceeds—For construction program. Under¬
Long

writer—To be determined by
able bidders—Halsey,

competitive bidding. Prob¬

Stuart & Co. Inc.; The First Bos¬

Corp. and Blyth & Co., Inc.

ton

(jointly): W. C. Langlej

Co.; Smith, Barney & Co.; Baxter,
Offering—Expected late in 1955.
&

Williams & Co

shares to 2,000,000

Becker & Co.

standing).

It

was

shares (there are 804,063 shares out¬
reported previously) that the company

proposed to raise approximately $1,500,000 through the
sale of 150,000 shares. However, no immediate financing
is

(Inc.), Chicago, 111.

planned.

Underwriter—Probably Blair & Co. Incor¬

porated, New York.
Heifer

(Waiter E.)

& Co.

Housatonic Public

Service Corp.

(9/5)

plans to issue and
sell 14,817 additional shares of common stock (par $15)
to common stockholders of record Sept. 5 on the basis
of one new share for each 25 shares held; rights to
expire cn Sept. 26.i Price—$22 per share.
Proceeds—
For construction program.
Underwriter—None. Unsub¬
scribed shares to be sold to highest bidder.
June

20

it

was

Maine Central RR.

reported

company

Hupp Corp.

May 13 stockholders approved a proposal increasing the
authorized capital stock from 3,000,000 to 4,200,000 shares
(200,000 of such increased shares shall




be (new) serial

'

company

company

after Sept. 6, 1955.
capital.

Proceeds—For working

share.

Price—$30 per
Underwriter—■

None.

Mountain States Telephone & Telegraph

(10/1)

Co.

about 86.7% of the
stock. Underwriter —

Telephone & Telegraph Co. owns

outstanding

common

None.

National Fuel Gas Co.

Aug. 1 it was announce company plans to file with the
SEC this week an application to offer its common stock
in exchange for

Gas Co., a prin¬
basis of 1.45 National shares for

shares of Pennsylvania

cipal subsidiary, on a

Pennsylvania Gas share.

each

Watch Co.

Haven Clock &

$300,000
nolds &

of new capital.
Co., New York.

approved

less than
Underwriter—Probably Rey¬

Public Service Inc.
announced that company plans this year
first mortgage bonds due 1985. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &
Co.; Blair & Co. Incorporated; The First Boston Corp.;
Equitable Securities Corp. and Union Securities Corp.
(jointly); Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Kidder, Peabody & Co. and Stone & Webster
Securities Corp. (jointly); and Lehman Brothers.
Orleans

New

4 it was

Feb.

issue

some

Central RR. (9/8)
received on Sept. 8 for the purchase from
the company of $7,500,000 equipment trust certificates
to mature annually to, and including 1970. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutz¬
New York

Bids will be

ler.

Electric & Gas Corp. (10/19)
announced company plans to issue and
sell $25,000,000 of first mortgage bbhds doe 1985: Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co.; Harriman Ripley & Co. Inc.; The First
Boston Corp. and Glore, Forgan & Co. (jointly); Blyth
& Co., Inc. and Smith, Barney & Co. (jointly);
Bids—
Expected to be received on Oct. 19.
York State

New

Feb.

14, E. Spencer Miller,

President, said company hai

given up the idea of refunding the $17,000,000 5^^
first
mortgage and
collateral trust bonds due 1978
Probable bidders for new bonds may include Halsey.
Stuart & Co.

&

Co.;

Merrill

New York

Telephone Co.

Keith S. McHugh, President, announced that
the company will have to raise more than $100,000,000
of new capital money to aid in carrying out its expan¬
sion and improvement program which will cost ap¬
17,

proximately $200,000,000. Underwriter—For and bonds,
to
be determined by competitive
bidding. Probable
bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.
Northern Illinois Gas

Inc.; Kidder, Peabody & Co.;

W. C. Langley

& Burr, Inc.; The First Boston Corp.:
Lynch, Pierce, Fenner & Beane; Blyth & Co.,

Coffin

Inc.; Glore, Forgan & Co.

Majestic Autd Club, Inc.

The

First

Boston Corp.,

29

Co. (Minn.)
announced that new capital
1955 will approximate $31,000,000.

ments

for

it

was

contemplate these

require¬
Present

funds will be obtained tem¬

porarily from short-term bank loans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co,
Inc.; Blyth & Co., Inc.

and The First Boston

Corp. (joint¬

Merrill Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Equit¬
able Securities Corp. and Union Securities Corp. (joint¬
ly);

Co.; Lehman Brothers

(jointly); Glore, Forgan &

Nuclear-Electronics

and Riter

Co.

Corp.

announced that it is planned, following
proposed merger into company of Olympic Radio &
Television, Inc., and Victoreen Instrument Co., to issue
and sell $2,500,000 of debentures.
Underwriters—Van
Alstyne, Noel & Co. and Barrett Herrick & Co., Inc.,
both of New York. Meeting — Stockholders to vote on
merger in August, 1955.
Ohio Power Co. (9/20)

June 28, it was

reported company plans to issue and sell
shares of cumulative preferred stock (par $100).

current offering

Proceeds—For

shares to service station owners and operators
Office—Room 717, 141 Broadway, New York 6, N. Y.

and

Northern States Power

March

June 20 it was

public shortly after completion of the

Halsey, Stuart & Co. Inc.

Glore, Forgan & Co.

Aug. 25 it was announced company plans to offer 500,000 shares (par five cents) to the motorist and general
of 100,000

Co.

Marvin Chandler, President, announced that the
company plans to spend $60,000,000 on new construction
through 1958, and that about $25,000,000 would be raised
through the sale of bonds in the period. Underwriters—
June 14,

& Co.

not

Inc., New York.

of California

ly); Smith, Barney &

& Co.

July 18 it was reported that the company may^be con¬
sidering some new financing. Underwriter—F. Eberstadt

offered by

plans

Lucky Stores, Inc.

Higginscn Corp. and Carl M. Loeb,

May 10 stockholders approved a proposal on increasing
the debt authority to $20,000,000.
Underwriter—A. G.

Co.

plans to offer to its
stockholders of record Aug. 8 the right to subscribe on
or before Aug. 29 for 30,600 additional shares of capital
stock (par $10) on the basis of one new share for each
six shares held.
Unsubscribed shares to be publicly

Jan.

(part for selling stockholders).

ly); Stcne & Webster

Hammermill Paper Co.

Plan

July 8 it was

April 20 stockholders approved a proposal to Increase
the authorized common stock (par $1.25) from 1,000,000

Rhoades & Co, (joint¬
Securities Corp.

Mortis

Aug. 2 it ~was announced

to

Lithium

Ford

borrowing

(latter's stockholders to vote

June

for-1

Co., Inc.; Salomon Bros. & Hutzler.

New

& Co.
announced
and

St. Louis, Mo.,

Aug. 3 it was announced that stockholders
a plan of recapitalization and plans to raise not

purchase, of the net current assets of Holeproof Hosiery

1956.

March

&

presently

plans an offering of stock
through long-term
Proceeds—To finance acquisition, through

was

(8/18)

Aug. 18 for the purchase from it of $3,675,000 equip¬
ment trust certificates. Probable bidders: Hallsey, Stuart
on

can

(Julius)

it

RR.

rights to expire on Oct. 28. Warrants will be mailed on
Oct. 1. Price—At par ($100 per share). Control—Ameri¬

Chemical Corp.

&

Pacific

Under¬
Garrett

Co., San Francisco, Calif.

shareholders

its

about

Corp.

Underwriters—To be

onds.

to

Probable

uly 18 it was reported company plans to issue and sell
additional first mortgage bonds. Underwriter—To

Florida

Witter &

York.

planned

July 11 it was reported that company is understood to
be contemplating the sale to the public of 700,000 shares
of sinking fund preferred stock this Fall and private
debt financing of about $40,000,000.
Stockholders will
vote Aug. 12 on approving an increase in the authorized
preferred stock from 700,000 to 1,500,000 shares. Pro¬
ceeds—For
expansion program and working capital.
Underwriters—The First Boston Corp., New York; and
Dean

plans

stock.

July 19 directors authorized an offering to stockholders
of 486,881 additional shares of capital stock on basis of
one new share for each five shares held as of Sep]L 27;

& Co., New York, and

D. Sherman

Aluminum

Kaiser

company

common

Bids will be received by the company at

York.

Co., Dallas, Tex.; and others.

&

reported

was

Missouri

of this year. Investment

Capital
Underwriter—Kidder, Peabody & Co., New

writers—L.

it

15

60,000 shares of

and New

AdviserResearch & Management Co., Los Angeles, Calif.

planned in the Fall

Underwriter—To be determined by competitive

County Electric Co.

ome
e

Fund, Inc.

July 20 it was announced this company will be formed
to specialize in worldwide investment in the field of
natural resources companies. An offering of stock is

Jan. 27 it

Broadcasting Corp.

to issue and
Proceeds—To sell¬
ing stockholders. Underwriter—Estabrook & Co., Boston

International Oil & Metals Corp.,

Co.

10

726 Jackson Place, N. W.,

Business—Industrial merchant bank¬

Washington, D. C.

xpansicn of the company's activities.
Underwriter—
reviews financing handled by Greene & Co., New -York.

ug.

—

ers.

Aug.

ssuance

Office

of this year.

tumn

Helicopters, Inc.
eb. 17 Donald S. B. Waters, President, announced stockolders voted to increase authorized capital stock from
.000.000 shares to 3.000,000 shares in anticipation of

Mont

in addition to plac¬

Insurance Co.

issue of $500,000 convertible deben¬

an

tures, will offer additional convertible debentures to
shareholders, the latter probably sometime in the Au¬

£ Kayser

Doman

Du

D. C.

Indemnity

43

(9/12-16)
sell

Bank, Washington,

International

one-for-five

took, to be not more than 80% of the market value imirst moitgage note

emptive rights to such increased shares.

Sulphur Co. (Texas)
March. 30 it was reported early registration is
of an undertermined number of common shares.

8 directors approved

ug.

★ Massachusetts

Isthmus

underwriting.

Detroit

preferred stock, $50 par value and 1,000,000 shares shall
be common stock, $1 par value); also waiving of pre¬

surplus. Meet-

ig—Stockholders to vote July 28 on approving financ-

(707)

Chronicle

The Commercial and Financial

60,000

construction program.

Underwriter—To
on page 44

Continued

44

(708)

The Commercial and Financial JChronicle

Continued

from

determined

be

Pure Oil Co.

43

page

bidding. Probable bid¬
ders: Blyth & Co., Inc.; Lehman Brothers; Kuhn, Loeb
& Co.; Harriman Ripley & Co., Inc. and Stone & Web¬
ster Securities Corp.
(jointly); The First Boston Corp.;
L'nion

competitive

by

Securities

Salomon
Registration—Planned tor
Corp.

and

(jointly).
Expected to be received
Ohio Power Co.

Bros. & Hutzler
Aug. 17. Bids—

to 11 a.m. (EDT) on Sept. 20.

up

(9/20)

ceeds—To retire bank loans and for construction program.
Underwriter—To
be
determined
by competitive bid¬

ding.

Probable

bidders:

Halsey,

& Co. Inc.;
Stone & Webster

Ripley & Co. Inc. and
Corp. (jointly); Kuhn, Loeb & Co.; Blyth
Co., Inc.; Union Securities Corp. and Salomon Bros
& Hutzler (jointly); The First Boston Corp.
Registra¬
tion—Planned for Aug. 17.
Bids—Expected to be re¬
ceived up to 11 a.m. (EDT, on Sept. 20.
Securities

&

Ohio

Water

28

it

Service

was

Co.

reported

company

plans to issue and

future.

near

burse

the

Proceeds—To retire bank loans and reim¬

company's treasury for construction expendi¬

tures.

directors any

National

Bank, San Francisco, Calif.
Aug. 0 directors approved offer to stockholders of about
35,764 shares of additional capital stock on basis of onenew

share

for

each

held.

shares

four

Price—$35

per

This
at

would

not

exceed

the discretion of the

time within the next 12 months.

Under¬

Radio
Feb.

28

which

pany and

be sold for account of

150,000 shares for selling stockholders.

com¬

Under¬

writer—Bache & Co., New York.

Reading Co.
June 7

stockholders approve^ a proposal increasing the
authorized indebtedness of the company to
$125,000,000.
Funded debt at Dec. 31, 1954 totaled
$84,077,350. If, in
the

future, the directors should deem it in the best in¬
of the company to issue
bonds, the board will

terests

determine

the

conditions

of

Stuart

&

of

amount

the

the

bonds.

issue

and

Probable

Rochester Telephone Corp.

the

terms

bidders:

Co. Inc.; Morgan Stanley &

and

Halsey,

Co.

one

Oct.

common

4;

rights

termined

stock

(10/4;)

its stockholders

to

share for each

new

to

later.

expire

four shares

Oct.

on

19.

Proceeds—For

on

held

the basis
of about

as

Price—To

construction

be

program.

Underwriter—The First Boston Corp., New York. Regis¬

St.

Croix

it

Power

&

Light

(9/27)

Co.

tional shares of

July 6 it was reported company plans to issue and sell
£10,000,000 of first mortgage bonds due 1985. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders—Halsey, Stuart & Co. Inc.; Union Securi¬
ties Corp. and Kidder, Peabody & Co., (jointly); Leh¬
man
Brothers, Bear, Stearns & Co. and Salomon Bros.
& Hutzler (jointly); Blyth & Co., Inc. and White, Weld
<sz
Co. (jointly).
Bids—Tentatively planned to be re¬
ceived up to noon (EDT) on Sept. 27.
Registration—
Expected on or about Aug. 24.
Pacific Power & Light Co. (10/5)
July 5 it was reported company plans to issue and sell
39,000 shares of cumulative preferred stock (par $100).

Underwriter—Expected to be local dealers. Registration
—Expected

on

Aug. 24.

15 it was reported

plans to Issue and sell

company

later this year $9,300,000 of first
mortgage bonds. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive

bidding,
bidders: Halsey, Stuart & Co. Inc.; The First
Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,
probable
Eoston

Inc.

Estabrook

Pennsylvania Electric Co.
Feb. 21 it was reported
company proposes issuance and
sale of $7,500,000 of preferred stock later this
year. Pro¬
ceeds—For construction
program.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and

Glore, Forgan & Co. (jointly);
Kidder, Peabody & Co.; The First
Eoston Corp.;
Smith, Barney & Co.; Harriman Ripley &
Co. Inc.

Pennsylvania Power

& Light Co.
19, Charles E. Oakes, President, announced that
company plans this year to issue and sell
$15,000,000 of

April

mortgage bonds and

Previous

program.

ranged privately

use

the proceeds

bond

through Drexel &

for its

•

St.

to

&

tions

in

and

mined

financing
Co.

and

was

The

ar¬

First

Wash.

it

announced

was

Ry

(8/24)

Co.

to

noon

For property addi¬
Underwriter—To be deter¬
—

competitive bidding.

Inc.

(jointly). Bids—Expected to be received up
(EDT) on Aug. 24, at 120 Broadway, New York,

• San
Diego Gas & Electric Co. (11/29)
Aug. 2 it was reported company plans to sell $18,000,000

of

bends.

Proceeds—To

Bank

to

issue

25,000

shares of capital stock (par
$20) as a stock dividend, and
a like number of shares
will be offered for subscription

by stockholders.

bank loans and

for

new

Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Blyth & Co., Inc.; Union

Corp. and

(jbintly);

Merrill

Lynch, Pierce, Fenner &
Brothers; The First Boston

Lehman

Corp.; White, Weld & Co. and Shields & Co. (jointly.
Bids—Expected to be received up to 11:30 a.m. (EDT)
Nov. 29.

on

Southern
Feb. 28 it

California

Gas Co.

reported company plans to issue and sell
$40,000,000 of first mortgage bonds.
Application ha«
been filed with California P. U. Commission
for ex¬
emption from competitive bidding.
Bids received on
was

last sale of bonds

were

from

July 28 it
to

18

Nov.

10.

bank

Service

Electric & Gas Co. (10/4)
Aug. 8 company applied to New Jersey Board of Public
Utility Commissioners for authority to issue and sell
£35,000,000 of debentures.
Underwriter—To be deterr/ ined by
competitive bidding. Probable bidders:

Halsey,

Stuart & Co. Inc.; Kuhn, Loeb & Co. and Lehman
Broth¬
ers

(jointly), Morgan Stanley & Co. and Drexel & Co.
{jointly); The First Boston Corp. Bids—Expected to be

received

up

to 11

a.m.

(EDT)

on

1,004,870' additional shares of
(par 5) on a basis of one new share for
shares held about Oct. 19;
rights to expire on
Warrants to be mailed

by company

loans

for

and

on

on

Oct. 21.

Price—To

Oct. 17.

investment

Proceeds—To repay
in additional stock of

Puget Sound Power & Light Co.
April 5, Frank McLaughlin, President, said that "it will
necessary

purposes

in

from

1955

to

outside

obtain

a

in

for

least

to

construction
the

extent

The company has scheduled

large-scale expansion program, involving
$75,000,000
order to
keep abreast of estimated load growth over

the

next

Webster

five

years.

Securities

ported to head
bonds.

a

Underwriters—Probably

Com..

The

First

Boston

Stone

&

Corp. and
Halsey, Stuart & Co. Inc., is re¬
group to bid approximately $25,000,000

Smith, Barney & Co.
ci

funds

sources—at

ci several million dollars."




received

up

to 11

a.m.

(EDT)

on

Oct.

19.

Regis¬

tration—Not,expected until Sept. 21.
Southland

Public Service Electric & Gas Co.

be

Ladenburg, Thalman & Co., Carl M. Loeb,
Rhoades & Co. and Wertheim & Co. (jointly);
Blyth &
Co., Inc., Eear, Stearns & Co. and Dean Witter & Co.
(jointly); Union Securities Corp. and Equitable Securi¬
ties Corp. (jointly); Lehman
Brothers; Morgan Stanley
& Co.;
Kidder, Peabody & Co., and Merrill Lynch,
Pierce, Fenner & Beane.
Bids—Tentatively scheduled

April 18 it
000

of

Frozen

was

6%

Foods,

Inc.

reported company plans to offer $600,-

debentures

and

60.000

shares

of

common

stock.

Office—160 Broadway, New York City. Under¬
writer—Eisele & King, Libaire. Stout &
Co., New York
Offering—Expected later this year.

Sterling Precision

repay
Underwriter — To

be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.
Blyth & Co., Inc. and Union Securities Corp. (jointly)
The First Boston Corp.; Lehman Brothers and
Bear
Stearns & Co. (jointly); White, Weld & Co. and Shield
& Co. (jointly).
Bids — Expected to be received ii

October

November

or

1955.

Corp.
April 26 stockholders approved a new issue of 500,001,
shares of preference stock (par $100). Proceeds—To re
deem present 5% cumulative preferred stock (233,501
shares outstanding), and for working capital.
Under
writer—Harriman Ripley & Co., Inc., New York.
United
Feb.

Gas

24,

Corp.

C.

N.

'

)

McGowen,

President,

tha

announced

corporation plans to raise $35,000,000 to $40,000,001
through the sale of additional common stock to stock¬
holders.

Proceeds—For

and

of

United

construction

program

of

com¬

Gas

Pipe Line Co., a subsidiary
Offering—Expected in September

October.
United

Feb.

Gas

N.

24,

Corp.

C.

McGowen, President, stated that com¬
doing some debt financing, with thin
year's total financing program reaching about $50,000,000 (including about $35,000,000 to $40,000,000 of com¬
mon
stock). Underwriter—To be determined by com¬

might

pany

petitive

be

Probable bidders: Halsey, Stuart &
First Boston Corp.; Morgan Stanley &
Co.; White, Weld & Co. and Equitable Securities Corp
(jointly); Harriman Ripley & Co. Inc. and Goldman.
Sachs & Co. (jointly).
Co.

bidding.

Inc.;

The

Virginia Electric & Power Co. (12/6)
Aug. 2 it was announced that company plans to issue
and sell
125,000 shares of cumulative preferred stock
(par $100). Proceeds—For construction program.
Un¬
derwriter—To be determined by competitive bidding.
Probable

bidders:

Stone

&

Webster

Securities

Corp.;

Merrill, Lynch, Pierce, Fenner & Beane.
Warren Brothers Co., Cambridge, Mass.
July 19 stockholders approved a plan to refinance the
outstanding 40,665 shares of $2.50 cumulative preferred
stock (par $50). It is proposed to issue not more than
$2,500,000 of notes, bonds or debentures which may be
in whole or in part convertible into common stock at
not less than $50 per share.
Proceeds—To retire pre¬
ferred

stock, to pay off a $225,000 loan and for working

capital.
Westcoast Transmission

April 25
units

Co.,

Ltd.

-

plans to issue
publicly about $20,000,000 of securities, probably
it

of

was

reported
and

notes

company

stock.

Bonds

now

are

expected

to

bt

placed privately. Underwriter—Eastman, Dillon & Co.,
New York. Offering—Expected in July.

of which 300,000 shares (to be convertible into
common)
are to be publicly offered.
Proceeds—For

working capi¬

Office—Buffalo, N. Y.

• Tampa Electric Co. (9/21)
Aug. 17 it was announced company plans to offer to its
common

stockholders

of

record

197,532 additional shares of
basis

of

one

new

Westpan Hydrocarbon Co.
March 2 it

was

announced Sinclair Oil Corp. has agreed

with the SEC to divest itself of its investment of 384,38®
shares

of

Westpan

Securities

Sinclair's
Weld

&

stock

(52.8%).

Underwriter—Union
sale o!

Corp., New York, underwrote recent

holdings of Colorado Interstate Gas Co. White,
New York, may be included among the

Co.,

bidders.

Worcester County Electric Co.
The

to file

(10/18)

registration statement
with the SEC. early in September with respect to sale
of $8,500,000 first mortgage bonds, series D, due 1985.
Proceeds—For payment of bank loans and new con¬
company

proposes

a

struction.

Underwriter—To be determined by compe¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce, Fenner & Beane, Salomon

Bros^l: Hutzler and Stroud & Co., Inc. (jointly); Coffin
& Bwr, Inc.; Kidder, Peabody & Co., Blyth & Co., Inc.
and

White,

Weld

&

Co.

(jointly);

Blair & Co. Incor¬
(jointly); The First
Boston Corp. Bids—Tentatively scheduled to be received
on Oct. 18 at company's
office, 441 Stuart St., Boston 16,
porated and Baxter, Williams & Co.

Mass.

(par $10),

the

expects to sell abou
bonds late in 1955
bank loans and for new construe
mortgage

Instrument Corp.

June 6 the stockholders voted to
approve an authorized
issue of 500,000 shares of first preferred stock

tal.

Missouri

company

titive

Oct. 4.

Aug. 8 it was announced that company may issue and sell
early in October 250,000 shares of cumulative preferred
stock (par $100).
Underwriters—May be Morgan Stan¬
ley & Co., Drexel & Co. and Glore, Forgan & Co.

addi

stock

subsidiary companies.
Underwriter—To be determined
by competitive bidding.
Probable bidders: The First

to be

of

reported
30-year first

was

Proceeds—To

in

plans to offer first

company

stockholders

common

each

(10/19)

announced

was

Co.

Electric

$30,000,000

and sell

Southern Co.

Boston Corp.,

Public

Union

Jan. 24 it

Halsey, Stuart & Co. Inc.;

Blyth & Co., Inc.; White, Weld & Co. and Union Secu¬
rities Corp. (jointly); Lehman Brothers.

be named

plans

repay

construction.

Securities

reported company plans to sell

was

Unexcelled Chemical Corp.
May 25 stockholders approved creation of 100,000 share
of 5%
non-voting preferred stock (par $25) and in
creased authorized common stock from 500,000 shares t
1,000,000 shares.

or

Probable bidders: Hal¬
Stuart & Co. Inc.; The First Boston Corp.; Union
Securities Corp.; Blyth & Co.. Inc. and Harriman Ripley
&

it

finance cost of ne;
construction, which is estimated at about $17,500,00(
Underwriter—Dillon, Read & Co. Inc., New York.

pany

sey,

common

Peoples National Bank of Washington, Seattle,
30

plans to offer to its

125,000 addi¬
(par $12.50). Proceeds—

Proceeds

improvements.

by

15

tional first mortgage bonds later to

Underwriter—None.

Francisco

40-years.

March

about

Co., Boston and New York.

Louis-San

mature

con-

Eoston Corp.

June

stock

common

of

May 10 stockholders approved an additional Issue ol
up to $25,000,000 of first mortgage bonds, of which it
is planned to sell initially
$19,500,000 principal amount

Beane

El ruction

issue

From sale of stock, and from issue of
sinking fund notes
to a bank and an insurance
company, for new equip¬
ment
and
general corporate purposes.
Underwriter—•

.

first

company

an

New York.

Pennsylvania Electric Co.
Feb.

announced

stockholders

common

Pacific

Paper Co.

was

Co.; Stone & Webster Securities Corp.; White
and R. W. Pressprich & Co. (jointly).

Co.

United Aircraft

tration—Planned for Sept. 13.

Aug. 1

to be maile

de¬

.share.

Underwriters—Elworthy & Co.; Schwabacher &
Co.; Davis Skaggs & Co.; Pflueger & Baerwald; amd J.
Earth & Co.; all of San Francisco. Calif.

&

&

tion.

July 25 company advised New York P. S. Commission
that it plans to make an
offering of 195,312 additional
shares of

are

Texas Gas Transmission Co.

about

100,000 shares will

Warrants

Price—Expected to be set by the director
Sept. 20.
Proceeds—To repay bank loans and fo
new construction.
Underwriter—If determined by com
petitive bidding, probable bidders may be: Goldmar
Sachs

reported that a public offering is soon
250,000 shares of common stock, of

was

of

Oct. 6.

on

Thursday, August 18, 195

Sept. 21.

on

Receptor Co., Inc.
it

..

on

Weld

of

ir Pacific

issue.

writer—Probably Smith, Barney & Co., New York.

sell

$1,000,000 of first mortgage bonds and $300,000 of
sddilional common stock (the latter to stockholders) in

debenture

$50,000,000 and would be issued

Stuart

Harriman

?-Iarch

convertible

a

expected

July 18 it was reported company now plans to issue and
sell $17,000,000 of first mortgage bonds due 1.985. Pro¬

rights to expire

April 9 stockholders approved the possible issuance of

.

share

Sept.

common

for

20

stock

each

10

an

issue

(par $7)
shares

of
on

held:

York
June

29

County Gas Co., York,
it

announced

Pa.

contemplates the
new series of its
bonds, in an aggregate amount not yet
determined.
Proceeds—To pay for new construction
and probably to refund an issue of $560,000 4%% first
mortgage bonds due 1978. Underwriter—May be deter¬
mined by competitive bidding.
Probable bidders; Hal¬
sey, Stuart & Co. Inc.; A. C. Allyn & Co. Inc.; White,
Weld & Co. and Shields & Co.
(jointly). It is also
issuance

first

was

and

sale

later

company

this year of

a

mortgage

possible that issue may be placed privately.

Number 5456

Volume 182

.

The Commercial and Financial Chronicle

..

Now

Paper Industry

Record

at

its

investment

stock

Affiliated

A Boom

level

reached

record

a

July 31, 1955 when they

on

to

amounted

$337,976,230, equivshare, and com-

alent to $6.18 per

with

pared

By ROBERT R. RICH
The paper

Fund, Inc., reports that

assets

net

companies

$266,054,922

$5.20

or

ing 12.1% of the whole, preferred

troled themonuclear fusion, which
many scientists feel is the ultimate

stocks 17.2%, and common stocks
70.3%.

in

step

could

energy,

the entire atomic energy outlook,
according to an "Atomic Activi-

allowing for distribution on Dec.
8, 1954 of $14,859,960 (29 cents
a
share) from profits realize4 in

ties" letter published by National
Securities and Research Corpora-

the

nuclear

share,

end

of

on

its

31,

fiscal

last

industry,

indicator of

general

an

coarse

pa¬

production in 1929 to 76% in

1953.

Domestic

Tip-off
excellent

business

of total

45

ae-

newsprint

production

capacity, estimated to reach 1,750,000 tons annualy by 1956 con¬
trasted to only 1,073,700 tons in
1953, is being expanded by the
development
of
Southern
pine,

tivity, will find 1955 another peak which
has
the
advantage
of
year with prospects for the inter- growing into pulpwood in 20 to
Added to the bond section of mediate
and
long-term
future 40 years, about twice as fast as
the
fund's
investment portfolio "exceedingly bright," according to other species in colder climates,since May 31, 1955 were Atlantic an
analysis
of
the investment according to the analysis.
Coast Line RR. Unified A 4V2s of management department of Calvin
Canada,
which
now
supplies
M964.
Other portfolio additions Bullock.
about 80% of domestic newsprint
inciuded
the
4 90%
preferred
Total U. S. production for 1955, requirements, can be expected to

development
broaden

further

the

atomic

of

of

INTRODUCTION

1954, the
year, after

per

Oct.

con-

THE

per

Peak in 1955

Mutual Funds

One of the nation's largest com¬
mon

from 53%

rose

Affiliated Fund

(709)

~

The letter points out that

tion.

f Tpnnp„pp r__ Tranqmis_
estimated at about 29 million tons, find new overseas markets "as
sl0CK OI Tennessee uas lransmis will be almost 9% above 1954, the European and United Kingdom
...Sales
of
Affiliated's~ capital known atomic power producing sion Co., the 5% convertible pre- prevjous peak year, the publica- recovery expands
further,"
the
stock in the nine months period processes.
ferred stock of A. C. F. Industries tion reports.
Total U. S. paper publication observes.
amounted
to $33,000,000,
Increased
use
of
an inRobert Colton, manager of the jnc and tbe COmmon stock of that and board consumption now appaperboard
ci^ease of 32% over sales of $25,- firm's Atomic and Electronics Recomnanv
proaches a 35-million-ton annual containers in the fruit and vege¬
000,000 in first nine months of search Division, says that "fusion
*
rate> compared with 26 milion table field and the almost univer¬
the previous fiscal year. On July provides more energy than fis1 he tuna s holdings ol the com- tong jn 1948 ancj 2g million in sal trend toward supermarket
31, 1955 shares outstanding were sion, is inherently saier,_ produces mon stock of General Portland 1952.
The difference between
Continued on page 46
at an all time high of 54,700,379. *ess
dangerous
radiation, and Cement Co. were eliminated.
domestic production and consumpDistribution of assets on July minimizes the troublesome radiotion represents imports.
""1

previous fiscal

year.

fusion

all

eclipses

other

.

shows

31,1955
in

and

in

10.51%

nfSCovernmenafthin
of Governments took place within
the
line

'1

to

creaie
create

its

in

be

to

pear

reactors."

"For fusion, no uranium would

a

portion

Government
a

Company,

A f

American Funds Distributors, Inc.

resources for paper making pur-

4.

*

„

P°ses>

w* i?asTn°um- 7^

"""^ <* Th6

Investment Company of America,

Jr0omt?8trin1"935!38 A4'erre-

available to supply
could easily supply the remainder American Mutual Fund, Inc., and the increasing demand, the report
securities additions to the port0f
uranium
required for other two eastern investment trusts, Mr. states.
t01i10 q? illS mne ™ontl?s ended phases of the atomic energy pro- Weimer's last position with Bank
Biggest growth in paper usage
July oi, luoD were American Airgram
America
A«utant
Tmct
was in kraft paperboard vwhich
lines,
Incorporated;
Dixie
Cup
"The best choice of fusionable
^
rose to 38% of total paperboard
Company; Eastern Air Lines, Inc.; matprdls aDDear<s fn bp lithium 0fllcer in the corporate trust di- production in 1953 from only 6%
Eli Lilly & Co.; Lily-Tulip Cup materials appeals to
be lithium y
l 1929 Kraft
r production
ber of others of the

Exclusive of U.

S.

stature,

same

sources

are

Government

was

a

''

'

Relatively High Income I
through
National Speculative

the United States leads all

Cop-

Kennecott

over!

substantially

From the standpoint of timber

L was announced by Ward Bishop, publication reports. The nation's
Corporation, Climax Molyb- President
of
the organization, share of world paper production

conda

per

prl

Vice-President of

Investing for

Series

HiS aPP°intment, effective Aug. other nations in the world, the

metallur£?ical f.0mo-inies
like AnaAna
metallurgical
companies like

num__

„present capadty leyels wiU
have to be increased rather sub-

the staff of the Bank of America stantially," according to the anafter more than 30 years of serv- alysis.
ice to become

purchal;- be
required," Mr. Colton explains.
„Those
experienced mining and

imnnrtant

nf

Tjssjon

purcnas

bonds when the stocks of
her-

in

the gigantic liability problem of

Affiiia+oH

reserve

assets

is

and

nf

by investing

power

of

months
nniin\j

with

Fund

ing

three

last

PERSONAL PROGRESS
hr?nL^r\ Lith GALE WEIMER has resigned from

invested

89.49%

stocks

common

a

mutual fund, the primary

ob¬

jective of which is to provide an

investment in

a

diversified

group

preferred and common
because of their

of bonds,

stocks selected

relatively high current yield and
reasonable expectance of its con¬
tinuance with regard to the risk
involved. Prospectus and other
information
may
be obtained
from your investment dealer or:

,..

Corp.;

Marathon

Corp.; Potomac
Electric
Power
Company;
St.
Regis Paper Company; San Diego
Gas & Electric Company; Tennes-

Lithium,

hydrogen.

Company;
Union Bag & Paper Corp.; United
Air Lines, Inc.; and El Paso Natural Gas
$4.40 convertible pre-

f

natural

Established 1930

sources

No.

aturai sou ces.

y

New York 5,

120 Broadway,

light,

very

a

silvery metal, is abundantly avail-

150,000

on

Deuterium may be made by exposing hydrogen to neutrons or by

V

water, which

decomposing heavy
in

the

nine

eliminated

stocks

months

were

in

American

turn

ordinary
,

be

may

separated
About

water.

from
part

one

,

.

Broadcasting-Paramount Theatres,

°f heavy water to 5,000 parts of

Inc.;

ordinary water

Armstrong

Cork

Company;

Best Foods

Inc.; Consumers Power
Company, Endicott Johnson Corp.;
Grand

Union

Company; International Nickel Company of Canada,
Ltd.; Louisville Gas & Electric
Company; R. H. Macy & Com-

Inc.;_National

pany,

Company;
Service

G yps u m
Indiana Public

North

United States
Gypsum
Company;
and
F.
W.
Woolworth Company.
Company;

"For

fusion,

wou]d

be

....

.

and

more

.

knowledge of lithium chemistry
lithium

major
Mjneraj

Lithium

.

.

„

Cor-

.

,

can

ration,

completely

are

benefit

our

investments

to

particular

industry, to any
region or country,

ticular

paror

to

seek

large profits when prices for

most

as

,

,

,,

share

the

at

sented

increase

a

when

prudence

City

an

$9.66.

report

This

ment

in

power

12.47%
in

the

the

5.3%

of

(7.88%)
pany

over
.

that

electric

invest-

light

4be

and

industry, accounting lor
of total assets, and that
natural gas industry ac-

counting for 11.70% are the largest in the portfolio.
Food shares
<7.70%)

July
repre-

course."

shows

third; bank stocks
fourth; and drug com-

end

equities (7.45%)-fifth.

of

value at

half-year,

fiscal

the

,

.

,

1Acrc

01

ay

1C/lo/

a ^ain 0
per share reported

a
above the $8.37
'

at the close of the previous fiscal
year

ended Nov
-

.

30
.,

,

.

„

presenting

President of the $460,000,000 Wellington

(left)

framed

welcome letter and certificate to Mr.
Rhode Island, on their

and Mrs. Romeo J. Audette of Pawtucket,

jointly
The

1954.
,

Walter L. Morgan

Fund,

the

becoming the 150,000th shareholder of Wellington Fund.
was made at the Philadelphia headquarters of

presentation
fund,

which is

one

of the oldest and largest mutual funds.

assets of the fund

rank

end of July were invested in 93
with

securities,

bonds

represent-

Incorporated

Incorporated

Affiliated

% Investors

4

Established 1)2*

Income

A

Fund
A Common Stock Investment Fund
Investment
are

objectives of this Fund
long-term
capital
and
incoma
growth for its shareholders.

Prospectus

upon

portfolio

^"mital

Chicago




—

Atlanta

—

Los Angeles

mu.uul

Fund

f»nJ «',OSe.

c.;hle

°f

and in<-o»»*

"9

oM »i n a b 1 e
undue risk of principal.

is

a

mutual

investment in
mon

investment fund offering
a diversified list of com¬

stocks selected for their investment

quality and income possibilities.
Send for a free copy of the booklet-pros¬
pectus by mailing this advertisement to

CALVIN

BULLOCK

Established 1894
The Parker Corporation,

request

Lord, Abbett & Co.
—

of

'e'e^VcVwTli

200 Berkeley St.,

Boston, Mass.

ONE WALL STREET, NEW

Name-

Please send

New York

State.
.......

,

of

end

the $9.17 per share asset

The

be-

reported the fund s net asset value
to

investments

describing

aou

Fund
,

.

amounted

dictates such

>->

jiddrcst..

Investment

f

,,

Per

our

lithium

comes so,necessary.
DIVERSIFIED

and

try to be conservative in

9, Mass.

prospectuses

Organization and the shares of your

Funds.

ten

„

stocks (and market risks) are low,
we

your

me

Name.

the

any

particular types of stocks. We

any

Please send

of

aware

Company

50 Congress Street, Boston

Potash and Chemical Corpo-

their background so that they can

regard to policy, "We do

limit

The Keystone

P°ratKm of America and Amen-

states in
not

COMMON STOCK FUNDS

Foote

producers,

Company,

..

Harry I. Prankard 2nd, President,

to

BOND, PREFERRED AND

must be developed. Naturally, the

the potentials and are developing

letter

Custodian Funds

lithium

more

required

,

.

,

ey stone

naturally.

occurs

stockholders,

his

In

Now York

Wellington's Shareholder List

fprrpH

Common

Corporation

Research

and deuterium, a heavy isotype of

Transmission

Gas

see

National Securities &

a

Prospectus on

□ Incorporated Investors
□ Incorporated Income

Fund

Add ress..

Naroe_

City-

4ddre«_

YORK 5

46

The Commercial and Financial Chronicle

(710)

Continued

Managem't

With Hamilton

jrom

Thursday, August 18, 19

.

.

.

5

page

(Special to The Financial Chronicle)

Colo.

DENVER,

Claude

—

become affiliated

has

Smith

Reporter

Corpora¬

Management

Hamilton

Our

W.
with

Governments

on

Observations.

By JOHN T. CHIPPENDALE, JR.

tion, 445 Grant St.

Jewell

Joins Wayne

(Special to The Financial Chronicle)

DENVER, Colo.—Lester A. Mil¬

joined the staff of Wayne

ler has

Seventeenth Street.

Jewell, 817

Shaiman Adds to Staff

Building.

in

market,

opinion

the

certain

of

money

dees not mean,
continue to

moved about

specialists, is in the process of working out a bottom.
be

they have been in the past as tne

as

especially tne longer-term ones, is still on
the thin side. However, it is reported that a few more institutional
investors ti.an has been the case recently have been showing an
interest in Government obligations.
Tfiere is also evidence that

market for these issues,

scale orders have also been placed for selected

the market,

likewise evidence that the inter¬
a bit more attention.

There is

issues.

longer-term

DENVER, Colo.—Robert Yoches
is
with
Shaiman
&
Company,
First -National Bank

Government

This
however, that quotations of these securities will not

unoer

(Special to The Financial Chronicle)

getting

mediate term obligations are
The near-term market is

still the best one, because there is a

there are no indications yet

lor these issues and

sizeable demand

quest for liquidity will be dissipated until some of the
uncertainties that shroud the money market have been removed.
the

that

With Oscar E. Dooly

,

Near-Term Rates

(Special to The Financial Chronicle)

MIAMI, Fla.—Miles R. DuKet is
now
with Oscar E. Dooly & Co.,

the time

Two With Beil &

Hough

(Special to The Financial Chronicle)

Fla.—Wil¬
liam E. Johnson and Frederick P.
Richmire-

&

Beil

with

now

are

Hough,
Inc., 350 '.First Avenue
North, members of the Midwest
Exchange.

Stock

As

a

whole, the Government market seems to have given

rapidly, but it seems as L.ougn tms uptrend is now xusnig a gieat
deal of its momentum so that the climb from here on will be mucn
more

that

Some money market specialists are of the opinion
near-term rates are entering an area of stabilization so that

gradual.

iluctuations, for a period of time at least,
latner restricted range.

Charles

—

nally, Jr. have been added to the
staff of Courts & Co., 11 Marietta
Street, N. W., members of the New
York Stock Exchange.

obligations

-

Ga. — Ryburn G.
has become affiliated
A.

Evans

Com¬

&

First National Bank
Building, members of the Midwest
Inc.,

Stock Exchange.

'

Hornblower

not, however, mean that certain investors, pension
the small institutional ones, have not been giving a

This does

and

funds

support to the long Government market. It is
large amounts have been placed

limited amount of

and the fluctuations which have taken place from
time to time have filled quite a few of these orders.
There has
in the market,

of "technical operation" going on, with

professional element, such

This has given a semblance of stability to the

&

still

a

Krensky

(Special to The Financial Chronicle)

man

has

Arthur
141

M.

Krensky
the

of

Midwest

Stock

was

&

Jackson

.West

members

Rothwith

connected

become

Co.,

Inc.,
Boulevard,

New

York

and

Exchanges.

previously

with

However, in spite of this, it is
which can be moved rather readily

thin market and one

very

in either direction.

•

end

the

of

He

Shearson,

Hammill & Co.

credit is

Demand for Credit

first half of
is

in

virtually

such

the pressure will still be

conditions,

Accordingly, not
the

STATE, MUNICIPAL
and

on

one

in

their

of

money

market specialists

still of

are

in the making in the Government
market, and they are not adverse now to recommending that
orders for specific issues be placed on a scale basis.
Because of
the thinness of the market, and its susceptibility to quick changes
opinion that a bottom is

placed already have a certain amount of discretion

attached

to

them.

forecast

to

will

pictures

Van Gogh and
the Impres¬

famous

most

of

sionists—Manet,

sale

is

public sale. The most
examples
are
Cezanne,

Toulouse-Lautrec,
the

it

that

a

obvious

and

Renoir,

forth.

so

instances

in

held

Degas,
give but

To

the

from

in

Paris

1952;

page

45

tnese

prices."
too. Blue

scene

Thomas

Bentons

33-50%

have

risen

past

decade;

the

the

by

300%.

as

skyrocketing

This midst the

Grant

and

And

Ma-

of

strug¬

severe

gles of the lesser fry!
In
on

this

of growing reliance
there is a lessening of

area

names,

emphasis
in

in

as

art

the

has

quality.

on

And

the

Blue

field,

Chip-ism and the

stimulated

been

by

memory

of the casualties with the

formerly

like

high-price

Meissonier, Bougereau,
Hovenden,
and
Joseph

Israels.

with

display
factors

the

attendant de¬
items and
were among the

its

for prepackaged

mand

cartons

mentioned

continued

as

influencing

increase

in

paper

"More

8c Co.

number

ST., NEW YORK 5

Whitehall 3-1200
231 So. La Salle St.

-

CHICAGO 4
ST 2-9490

45 Milk

St.

BOSTON 9
•




-

HA 6-6463

the

report

observes, "paper should continue
to show an increasing per capita

consumption

INCOKPOflATED

15 BROAD

important,"

of

because
uses

is

its

greater

perhaps

the

example of an increas¬
ingly 'livable' America."
best single

TOTAL NET assets of the T. Rowe

Price

Growth

increased to

1955,

as

Stock

Fund,

Inc.

$5,435,729 on June 30,

earlier.

Crucial

per

analogy between the
"two
markets" .is found
in the
mass psychology of
uniquely pay¬
ing for style. That is, in painting
in

stocks, follows success in
speculation
the
course
of
the
"Economist," Mrrch 5,.1955*

the

For

asset value per

11.03%—from
John H. G.

same
period, net
share increased by

$18.62

to

$20.93.

net

asset
from

$21.40

to

period, which represents
43.2%

after

distribution
from

1954

sale

adjustment
in

realized

same

rise of
for the

gain

on

the

WALL

STREET Investing Corp.'s

mon

are

the highest in the com¬

stock

mutual fund's history,

shareholders

firm's

The
reveals
assets

net asset value per

and

net assets

share

that,

were

learned

today, j

semi-annual
as

Pell, President, said

changed

remained

continue

and

to

un¬

compared with $3,081,953 pared to $5,808,083.52 on

of

Bull Market.

a

in

during

tl

On boi

sides of the Atlantic, the shortati
of the

trie

good and reliable old ma.

puce

periods pushed i
known artis

some

lesser

oi

distinguished pictures 0
point the Blue
Chip-is:

some

does get temporarily diminished
Witness
the
recent
coming
fashion
tures

and

of

prices of

rising

the

pi<

periods, <
the Barbizon School, of Theodoi
Rousseau, Harpignies, and Dai
bigny. As with the stock market

turning

Baroque

to the secondary issue
neglected
Renaissam

hitherto

an Ibbetson, or below-the
quality Dutch masters ma.

top

midst

the

leaders,

Bull

offer

opportunity f(

profits
speculator.

art

But

the

—

for

method of achieving its objectives:

(1) long-term capital growth, (2),
conservation of principal in terms

dollars

and

and

(3)

purchasing

reasonable

power,

in¬

current

is investing

is

that

stated

planning

two

the

services, scheduled
later

month:

this

corporation

additional.bank
to take effect
dividend-a-

a

month plan and a retirement pro¬
gram

somewhat similar to

able

annuity

the

insurance

a

vari¬

divorced

policy

of

feature.

in

both

net

income

by The United Corpora¬
the first six months of

year,

according

the

to

com¬

Net

value

asset

rose

substanti¬

play

the

field

tl

should be purely the buj

money

er's

satisfaction

non-material

without

confusion

financk

with

achievement.
In
to

event, it is unnecessar

any

exploit

that

word

investmen

$223,222 in prpfits on sales of st
curities.
Considerably larger ur
realized capital gains remained i
the portfolio at June 30, 1955 an

a

June 30,
$88,853,146, equal to $6.31
On

share.

assets

amounting

were

share, and
share

on

months

of

Dec.

on

31,

$83,133,679

1954

net

or

$5.91

or

$5.51

$77,527,715

June 30, 1954.
Net income during the first six
1955

increased

392,749, equal to 17c

$2,072,364

or

14.7c

a
a

to

share, from
share re¬

ported for the corresponding
riod of 1954.

$2,-

pe¬

Mr. Hickey said that

report, the improvement in net earnings
was due in part, to an increase of
and interest
increase

of

about

investment

the

im

!

securitie

$85,663,672, with the balance
assets
represented by cash an
U. S. Government securities. Put

lie

utility
to

stocks

common

be

the

largest

cor

grou

holding, aggregating $62,204,433 c
70%

of

group

total

net

Othe

assets.

holdings included stocks

c

manufacturing companies value
at $10,465,211; oil stocks, $5,159
751; banking, finance and insui
ance stocks, $3,579,213, and misce]
laneous

common

TOTAL

NET

Atomic

Development

stocks, $1,623,66!
ASSETS

M

th

of
u

t

u a

Fund, Inc., increased tvventy-fol
the fiscal year ended o

during

June 30,

1955.

Board

Jr.,

Chairman

and

Merle Thorp<

President

Newton

Steers, Jr., reported to the Fund
30,000 stockholders that net assel
the

to

bring

owned by United on June 30, 195
had an indicated market value (

had

a

to

Total

the

year,

<

financing,

factor determining the devotion c

ally during the iirst six months of
1955

(

unimportar
to the appeal <

seems

activity, or
activity.
As in

tinued

come.

tl

definition-

of

matter

whether the buyer

speculating

tl

in

Market

an

short-term

great
rank

reflect

the management's view of the best

com-, $123,069 in dividend
Dec. 31, income • and to an

as

"secondaries"

the

helped

have

of June 30, its net?

$6,467,795.58,

buyers

of

over

provement in net asset value.

a

of securities.

spilling

positions

a

December

characteristic

dual

the company's equity and reserve

President.

The

Issues

Another

theatrical
Another

of

at

Dut<

Spilling Over Into the "Secondary

the

Style Feature

pany's interim report for the half
year
issued by Wm. M. Hickey,

share increased
$30.02 during the

year

value

$0.62

usage.

Aubrey G. Lansiton

one

in-and-out

to his

That

as

no

period of the 17th century.

fetchers

Thomas

*

En;

works,

securities

from judgment to the safe

escape

gre

and less

On the American

Chip-ism has been rife.
over

pe

The

areas.

the

have

we

ters has at

insignificant trifles
artists command high

are

changes

applies to the Impressionists;

francs.

Even

there

popularity enjoyed by the
lish
portraitists 1910-1915,

course

the

shopping

both

w

beautiful.

drastic

and

in

style

contestant

most

the

event,

any

Renoir
com¬
manded 22,500,000 francs; anu a
Degas pastel went for 10,000,000
unimportant,

tion during

Mutual Funds

In

but

recorded

jrom

be

to

sistent

not

a

Cezanne

INCREASES

Continued

deem

other

Cognac

and net asset value per share were

SECURITIES

the

the

by

contesting picker, b
that o;

correctly anticipating

still-life
fetched 23,000.000 francs: a pretty,
outstanding

He

few

a

in both directions, under the market scale orders which have been

PUBLIC REVENUE

demand

impossible

what
fetch

non-Treasury investments.

U. S. TREASURY

century or in the

this, and whose work

such

1954.

large and,v

and will continue to be

the money
markets, except in the instances when the powers that be see fit
to give temporary relief, which should be expected from time to
time. If the seasonal needs of the country are going to be financed
without stringencies, and it seems as though tnis will be the case,
then the money market should not have to make too much of an
adjustment from presently existing levels. There is no question
but what the supply of non-Government securities and other such
investments will continue to be plentiful and this means that com¬
petition for available funds will be as keen as ever.
However, on the other hand, the adjustment which has already
taken place in quotations of Government securities has gone a long
way toward discounting the loan demand and the competition from
under

last

the

to

which

tThe London

Continued Large
The demand for

CHICAGO, 111.—Noel N.

dealers and traders, covering

as

tiful

few artists who died either at the

evident that scale orders in not too

Weeks, 134 South La Salle Street.

Now With Arthur

other channels,

loans, corporate and tax

longer Government bond market.

CHICAGO, 111.—Harold A. Hob-

with

tightening

money

a

in

fantastically

short commitments.

(Special to The Financial Chronicle}

is

the

better return on their funds from

getting a

namely mortgages, private placements,

also been a certain amount

Jr.

discounted

fully

The demand for the most distant Treasury obligations
is still rather limited because investors, the ones that do make the
market for Government securities a solid and broad picture, are

the

Joins Hornblower Staff

son,

ten¬

free obligations.

(Special to The Financial Chronicle)

Clement

get the re¬
port:! "The most lucrative invest¬

operations.

ATLANTA,

pany/

a

by Lord Keynes:—it
question of picking that gir
photograph that seems most bea
depicted
not

we

..

beauty popularity contest so apt

ments have been the pictures of a

rins.

of the Government market has shown

rather

has

in almost geometri¬

abroad

Woods by as much

dency to rally in the face of higher interest costs, but it appears
to be a bit too early yet to indicate whether the market for these

still

Clement Evans Adds

with

will tend to be within a

Buying of Long Bonds Noted

The longer end

R.

Crawford, Jr. and Hugh P. Nun-

Clay," Jr.

From

witness

Scale

(Special to The Financial Chronicle)

Ga.

a

of itself in view of what has recently

The short-term interest rate has been going up fairly

transpired.

Two With Courts Co.
ATLANTA,

which

time.

it has been hit with in a very short space of

—

progression.

three

operations appear to be out of the way for
being, in spite of the recent increase in tne "call loan"
3]/4% to 3 V2 %■ This means that the money market will

rather satisfactory account

PETERSBURG,

Stabilizing

adjusting itself to the series of increases in money costs

be

cal

Monet

The interest rasing

rate from

Ingraham Building.

ST.

to grow

seem

The
market

underen phasized

often

ampie

increased

from

$2,226,997

£

beginning of the period t
$44,512,374 at its close. Net assel
per share increased during the pe
riod

from

$10.88 to $14.37."

During the year the fund real
ized
of

a

gain of $201,684 in tne sal

securities and recorded

crease

ties

in

appreciation

of; $3,460,547,

on

an

Messrs.

and Thorpe reported.

in

securi
Steer

Net invest

ment
income after expense
amounted to $354,878.

The report notes

totaling

12 cents

that dividend

per

paid during the year.

share
.

wer

Number 5456

Volume 132

..

.

Dean Witter Places
Armstrong
Note Issue
miiiaiivii^ uviv
&

Witter

Dean

Co.,

is

it

an¬

18), has
placed privately an issue of $1,000,003 53/4 % junior subordinated
notes due July 1, 1965, of A. J.
Armstrong Co. Inc. of New York

nounced

(Aug.

today

City.
The company

is in the factoring

Joins King Merritt

With Schirmer, Atherton

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

Gaffney

&

Merritt

Co.,

King

with

connected

now

are

Woodruff

Inc.,

Building.

with

50

Walston Adds Three

KANSAS

is

Cohen

CITY, Mo.
with

now

Arnold

—

HEMPSTEAD

Company, 4627 Wornall Road.

The Garlock

leine

f17'

staff

OMAHA, Neb.—Eugene H. Peek
has become associated with

H. O.

Co., Farnam Building.

Peet &

business

August 10, 1955

/ t'F'1

■' 1

COMMON DIVIDEND

At

Adds

The

John

of

clared

the

declared

day

this

August

on

1955.

11,

1955, to stockholders

1955;

Dated

1955.

Stock—$4.50

share

a

the

on

$1.50

pay¬

PITTSBURGH

October

on

CONSOLIDATION

the
in¬
1955, payable Septem¬

terim dividend for

share

a

third

the

as

on

COAL COMPANY

quarterly

14, 1955, to stockholders of record at
the close of business on August 22, 1955.

at

ber

P. S. du

of

The Board of Directors

Pre¬

both

Series,

meeting held today,

a

declared

a quar¬

share on the

terly, dividend of 75 cents per

the Company, payable
on September 12,
1955, to shareholders of
record at the close of business on August
26, 1955. Checks will be mailed.

Common Stock of

PONT, 3rd, Secretary
G

Secretary

H. B. Pierce,

August 11,

25, 1955, to stockholders of

also

Stock

Common

September 9, 1955.

close of business

change.

10,

September 30,
of record at the

payable

Company,

Huntington Bank Building, mem¬
bers of the Midwest Stock Ex¬

Barker
President

Walter G.

this

declared

record at the close of business

stock of the

common

Has

Preferred

87'/if

Stork—$3.50

able October

share and an extra
of 25? per share were de¬

on

Directors

the

on

and

ferred

of 1H per

dividend

of

Board

share

a

No. 317

quarterly divi¬

held this day, a

dend

has

B.

Y.

N.

day regular quarterly dividends of $1,121/2

Board of DireC'

meeting of the

a

tors,

joined the
Joyce & Co.,

Adkins

M.

has

Wilmington, Del., August 15, 1955

COLUMBUS, Ohio—Mrs. Made¬

(Special to The Financial Chronicle)

Directors

regular quarterly dividend of Thirty-two cents
(32c)
per
share payable on September 15th,
to stockholders
of record at the close of

Packing Company

(Special to The Financial Chronicle)

Peet Adds to Staff

of

Board

BANK

Consecutive Dividend

1955

Series

>

HEMPSTEAD,
144th

a

changes.

John B. Joyce

of
Federal

DIVIDEND NOTICES

DIVIDEND NOTICES

The

Bell

R.

E.

Jerome Coe

the staff

Street.

Pilot

Robert M.

—

to

Hornblower & Weeks, 75

Main Street.

111

added

been

DIVIDEND NOTICES

Street, members of the New York
and
San
Francisco
Stock
Ex¬

(Specialto The Financial Chronicle)

Murray is with Hy Patashnick,

has

E. I. DU PONT DE NEMOURS & COMPANY

Ratto are now with
Co., 265 Montgomery

&

Walston

With E. R. Bell Co.

l.

BOSTON, MaSS.

Mass.—Mark

ADAMS,

Exchanges.

FRANCISCO, Calif.—Car¬

Burroughs,

With Hornblower & Weeks

Patashnick

of

(Special to The Financial Chronicle)

SAN

NORTH

Stock

and Boston

York

Co.,

&

members

Street,

and Eugene K.
,

Atherton

Schirmer,

Congress
New

connected

become

has

Carthy

Joins Hy

(Special to The Financial Chronicle)

Mass. —John J. Mc¬

BOSTON,

the

men

business.

— john c.
and Allen R
oppegard

springfield, m0.

47

(711)

Chronicle

The Commercial and Financial

Charles E. Beachley,

DIVIDEND

DIVIDEND NOTICES

Secretary-T reasurot

NOTICES

BRITISH-AMERICA
TOBACCO COMPANY LIMITED

(MMfNG)i
BRICCS & STRATTON

AMERICA'S LARGEST SUPPLIER

OF

STOCK

The Board of Directors of

Gjxmamid

Charles

TBricgs&StrattonJ

Cyar.amid

ican

declared

today
dividend of

Company

quarterly

a

eighty-seven
and one-half cents
(87Va(?) per share on the outstand¬
ing shares cf the Company's 3V2%
Cumulative Preferred Stock, Series

dividend of
ninety-three
and
three-quarter
cents
(932ic)
per
share on the
outstanding
shares of the Com¬
pany's 33/4 ','c Cumulative Preferred
Stock,
Series C, payable October
1,
1955,
to the holders of such
stock
of record at
the close of
business September 2, 1955.
and

B.

!

j

quarterly

a

holders of record

Directors of Amer¬
The

Directors

of

Board

has

dividend
and

of

record
L.

share

August

26,

G.

Milwaukee,

REGNER,

Secretary-Treasurer.

American

R. S. KYLE.

-/

Secretary

*

August 16, 1955.

International

Corporation
To The

Stockholders:

No.

The Directors of American

day took action to effect a 2
for 1 split of its shares by de¬
claring a 100% stock dividend.

29,

The Adams Express

Board of Managers
action to effect

of

its

shares

par) held of record

holders

by declaring a

will receive

18, 1955,

share

split

one

on

31,

dividend of 3% (less
Preference Stock. All
or

be¬

for

Sep¬

virtue

received

London

in

of Article XIII

quarterly cash dividend
a share on the presently
outstanding shares was also
declared, payable September

Coupon
with

No.

on

virtue

30<

a

share

on

tax

credit

Internal

States

ate

W. B. VIALL

by

to

application

also

declared, payable September

23,

1955

record

to

Revenue




82nd Consecutive Quarterly Payment

The Board of Directors of

Finance Co. declared

States

Revenue

Code

can

COMPANY LIMITED

August 9, 1955

1955

a

to

1955.

0>-

PREFERRED STOCK DIVIDENDS

The directors also declared regular

quarterly dividends of $1.43% on the
$5.75 Sinking Fund Preferred Stock,
and $1.18% on the $4.75 Sinking
Fund Preferred Stock. All preferred
dividends are payable October 10,
1955 to stockholders of record Sep¬

by

application to Guaranty Trust Company
of New York obtain certificates giving

tember 22, 1955.
A. E. WEI DMAN

particulars of rates of United Kingdom
Income Tax appropriate to all the above

Treasurer

July 28, 1955

mentioned dividends.

>

Penn-Texas
CORPORATION

DIVIDEND NOTICE
The

Board

clared

a

share

on

1955,

to

of

Directors

of

Penn-Texas

Corporation

has today de¬

of thirty-five cents ($.35) per
Capital Stock of the Company payable October 18,

regular
the

quarterly dividend

stockholders

of

October

record

previous quarterly dividends of

3, 1955. This' compares

twenty-five cents ($.25) per share.

DIVIDEND APPLICABLE TO

SHARES ISSUED TO

NILES-BEMENT-POND CO.

STOCKHOLDERS

IN MERGER
105th CONSECUTIVE QUARTERLY CASH DIVIDEND
The Board of Directors has declared

casfi dividend

on

a

quarterly

the Common Stock at the rate of

The

Board

that

the

$.25

per

share

those

dividend is payable September 30, 1955 to stock¬

holders of record

at close

of business

September 15, 1955.
Wm. E. Thompson

of Penn-Texas

Directors

declared

dividend will

Corporation has pointed out
be payable not only on the

Corporation shares but also on
Common Stock which NilesBement-Pond Company stockholders may receive as a result of the
merger, inasmuch as it is contemplated that the merger may become
presently

>

of

above

outstanding

shares

effective

of

Penn-Texas

Penn-Texas Corporation

prior to the October 3rd

July 26, 1955

quar¬

share on
payable October 10,
stockholders of record Sep¬

tember 22,

Section

Internal

Seaboard

regular

terly dividend of 45 cents

between the United
Kingdom, to a tax
901 of the United

Treaty

under

a

Common Stock

States and the United
credit

Secretary
August 16, 1955.

President

COMMON STOCK DIVIDEND

(1) of the Double

all the above mentioned dividends.

Secretary
August 16, 1955.

The

W. B. VIALL

September 1, 1955. *

J. Raymond Pritchard,

be deposited

Code

BRITISH-AMERICAN TOBACCO

stockholders of

September 2, 1955.

September 15, 1955, to

to

September

was

must

Guaranty Trust
Company of New York obtain certifi¬
cates
giving particulars of rates of
United Kingdom Income Tax appropri¬
can

September 2, 1955.

the presently

shares

on

(1) of the Double

quarterly cash dividend of

outstanding

able

United

29, 1955.
A

104

of Article XIII

Taxation

with

business

stock of said Company, pay¬

the National Provincial

between the
United
Kingdom, to a
under Section 901
of the
the

($1 par) for each share

of

share on the com¬

mon

on

($1 per) held of record at the
close

dividend of thirty

Treaty

and

United

1955 to stockholders of

record

October

October 7, 1955 will be in time

States

20,

on

pay

the 6%

Taxation

Octo¬

additional

half-yearly
on

tember 29, 1955.

stock dividend. Stock¬

100%

ber

today took

a

per

payment of dividends to transferees.
Stockholders who may be entitled by

A

2 for 1

a

1955

transfers

of 20?

Company's

to

tax)
fore

the close of business

All transfers
before August

or

on

transferees.

to

decided

Also

tional share ($1

at

London

and Coupon
dividend on

1955 will be in time for payment of

dividends

October IS, 1955, one

share ($1

To The Stockholders:

5% Preference Stock.

received in

addi¬
par) for each

for

used

be

must

International Corporation to¬

Stockholders will receive on

(30(0

the 5% Preference Stock
(less Income Tax) for the year ending
30th September next will also be pay¬
able on the 30th September, 1955.

COMPANY, LIMITED

the Ordinary Stock

on

104

the

declared

Railway Company

meeting of Directors

a

dend

have

of business

of

dividend

Southern

stockholders of record at the close

Bank Lim¬
held August ited,
Savoy
Court,
Strand, London,
9, 1955 in London it was decided to pay W.C.2., for examination five clear busi¬
on
September 30, 1955 Interim Dividend ness days (excluding Saturday) before
of Six Pence for each Ten Shillings of payment is made.
Ordinary Stock for the year ending Sep¬ DATED 10th August, 1955.
tember 30, 1955 on the issued Ordinary
By Order
Stock of the Company free of United
A. D. McCORMICK,
Kingdom Income Tax.
Secretary.
Also decided to pay on the same day
Westminster House,
half-yearly dividend of 21/2% (less tax) 7, Millbank,
on issued 5%
Preference Stock.
London, S.W. 1.
Coupon No. 224 must be used for divi¬
Stockholders who may be entitled by

At

Company

1955.

New York,

payment is made.
The
usual
half-yearly

BRITISH-AMERICAN

able

2

MACHINES

BUSINESS AND INDUSTRY

TOBACCO

of the Company, pay¬
September 30, 1955, to the
holders of such stock of record at
the
close
of business September

London,
clear busi¬
days (excluding Saturday) before

York, 32, Lombard Street,

of Nor¬

Board of Directors

folk

cents

E.C.3., for examination five

August 16, 1955

Slock

mon

New

obtain this

deposit Coupon No. 224
Guaranty Trust Company of

must

the

2%%

today
declared a quarterly dividend of
fifty cents <50(0 per share on the
outstanding shares of the Com¬
Cyanamid

dividend

McDonagh,

COPYING

on

Holders of Bearer Stock to

Dividend

Common

The

be

will
30th September, 1955.
Tax

Income

Kingdom

payable

Wis.

Directors of Amer¬

The Board of

United

share

ness

FOR

RAILWAY COMPANY

the

on

ending 30th

September 1955 of six pence for each
Shillings of Ordinary Stock, free of

Secretary

COPYFLEX

1955.

COMMON DIVIDEND

ican

N

NORFOLK SOUTHERN

Ten

August 16,1955.

Vincent G.

an

per

dividend

interim

second

with

declared a
cents (60c)

of sixty
extra dividend of forty
on the capital stock
(without
par
value)
of the Corporation,
payable September 15, 1955, to stockholders
quarterly

per share
cents (40c)

Inc.

September 1, 1955, to

payable

DIVIDEND

A

Ordinary Stock for the year

regular quarterly

a

dividend of 60c per common

DIVIDEND
The Board of

Company,

Bruning

have declared

COMPANY

PREFERRED

TO HOLDERS
PREFERENCE
WARRANTS TO BEARER.
AND

ORDINARY

OF

CORPORATION

1955.

DIVIDENDS

OF

NOTICE

ENGINEERING & DRAFTING EQUIPMENT

AMERICAN

August 15,

record date.

L D. SILBERSTEIN,

President
t

\

I

48

(712)

The Commercial and Financial Chronicle

Beliim!-the-Scene Interpretation*

i

some

war

months,

million

the Federal budget will
comparatively small for two
three years, it is reported

yr

in

this

theory

the cold
to cost $34 billion per

war

million

for

Defense

Department
military
spending
for
an
indefinite
period. In fact, such spending
in

fiscal

1955

$35,847
words, it is

reached

million.

'54, and

the
Federal

against

$802

mechanism

million,

and

would

to

were

Defense

might be able to cutback
here

and

of

two

little

a

where

gram

present.

they

item

This

all

on

pro¬

which

under

by

delay

one

have

base

metals,

de¬

if

selling

year.

support

order.

ties

is

out

of

the

hands

com¬

of

size

rangement,

military

ment would be cut

decisive
make
-war

step

it

was

establish¬

barring

which
that

appear

definitely at

it

some

should

the

end.

an

will could

to

pro¬

In

writing
this

ago,

dicted

if

there

was

recognizable

definite

a

end

of

-the

it
would
take the
from
two
to
three
that military spend¬

war,

years,

now

ing has

so

well

level, it

much momentum, to
the $34 billion

below

indicated.

was

other

the

words,

most

Geneva

optimistic

even

is

not

going to make possible that cnt
iii expenditures
are
%

which

so

many

relying upon to make possible
tax

cut

next

year

without

further unbalancing the budget.
Other Spending Rises
"

When

the

figures

other

on

spending for
fiscal
1955
are
studied, there is little that offers
hope for a net reduction in total

spending.
Thus

than
run

compare

compensation

cost
in

$218
million
fiscal 1954. The

trend

of

pension

more

long-

costs

is

upward.

well,

when

didn't mean
Mays!"

I

averages

Jetsam,

I

asked

Duke

to

you

Snyder

did

and

if

the

direct

give-away,

would

provide

it in haste.

the money will be more plenti¬
ful. (Certain special "urban re¬

something. In the Housing Act
of 1954, the President took the |

to the replacement cost basis.)

which

Congress
funds

This has been

Housing Act of 1955
Congress put on Mr.
Eisenhower's
desk
was
really

for

done.

the House

t

this

docket. Nevertheless, the

better.

that in

creased

will

recall,

we

we

these

another $4

to

was

A

add

billion increment

that if the flexible
support program of the Admin¬
istration was put in

lizing
ance

operation,
probably there would be
necessity for increasing the

scope

for

a

continue

the

assurance

flexible
be in

same

:

now

provisions

that

will

slum

is

,

cities

to

clearance

subsidize

to

urban

and

wanted

a

re¬

i

Finally,
of

a

while the President
70,000-unit progran^

public

housing spread over
two-year
period,
Congress

voted

Colorado Oil & Gas

Federal

"capital

newal.

$12

billion figure," he informed
the

of

styled

worth

elegantly

grants"

necessity—and

we
hooe
correct—to continue the
authorization
beyond the

million

gifts,

effect and that there will

no

this

$500

the

shortly1

a

of

program

one-year

45,000 units.

White Eagle Oil

New

Olin Oil & Gas

Congress
tive

for

however,

steamed

up
may

also

Federal

a

supposed

was

in

other

hand, Congress

conference
new

kill

broad

the

pro¬

Federal

com¬

mitment to provide
public hous¬
ing for elderly persons, adopted
at first by the Senate and
pro¬
posed also by the House Bank¬

ing Committee.
It also did one
thing which
particularly irked the Adminis¬

tration. Under the
of

1954

Housing Act

whole kit

a

and

of

Federal

subsidies,' in¬
housing
and

cluding
public
"capital grants" for slum clear¬
ance,

tied

was

in

with

over¬

riding Federal control of local,
municipal planning.
; In other words, if a city did
not plan its future in a
way to
win

pat

a

the back from the

on

Housing
Agency,

> and

various

grants,

it

Home*

did

not

Finance

these

get

insured

loans,

history

when

Congress

housing
can

as

refuse

removed
a

public
bait which HHFA

if

city doesn't do

a

what HHFA wants.

(This column is intended

to

fleet the "behind the scene" inter¬

RFC

pretation from the nation's Capital

slain.

and may or may not coincide

the "Chronicle's

Military Housing Glorified

coopera¬
now

be

Even
though
Department was

-

the

to

housing for mili¬
tary personnel at military bases
out of appropriated
funds, the
Congress thought otherwise.
re-enacted

financial
Title

magic

VIII

for

and

put

into

the

Three With FIF

go

back to the conventional method
of paying for

It

J*

Defense

willing

new.

(Special to The Financial Chronicle)

DENVER,

Bradley,
Paul

A;

nected

Colo.

James

C.

Schaefer
with

Hughes

are

FIF

now

specifications
people draw up.

put up this

bids, incidentally,
procurement

the

Service

Contractors'
are a

form of

traditionally iden-

New

Views

on

RIVERSIDE CEMENT CO.
CALIFORNIA

Mallinckrodt Chemical

CLASS

Pacific Northwest Units

Sulphur

Bell

Teletype

SL 456




_

Louis

2,

__

STOCK

on request

Investment

Carl Marks
FOREIGN

SECURITIES

50 BROAD STREET

Midwest Stock
Exchange

320 N. 4th St.
St.

(Common)

LERNER & CO.

SCHERCK, RICH TER COMPANY
Member

B

Copies

Wagner Electric

TEL:

HANOVER 2-0050

r,

fl U1(tt,e
GArfield
1-0225

Mo.

T

T

•

10

&

Clo Inc.

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

and
con¬

Management

new set-up, the De¬
Department will ask for

to

F.

Corporation, 444 Sherman Street.

Under the
fense

t

Thomas

—

FHA

military housing.

Valley Gas

Bought—Sold—Quoted

with

views.)

own

r

and

the

re-

to

Texas Eastern Transmission

Pan American

(on

housing according to the design

Programs Added

housing. This

financing
was

revives

that

into

mil¬

sewers*

etc.,

contractors' bids

Additionally,

Anheuser Btisch

was

loan

to provide

was

will

home

FIIA

insurance

third thing

A

reason¬

but

of $169

utilities,

This

activity

program.

have

loans

works,

voted.

pass

the

year

housing,

program

of

water

of the FHA's insur¬

modernization

authorization further.
"We

million

and subsidies.

new

municipal

to

program.

Another thing was to

then

the

purposes

gages.

the ever-expanding, never stabi¬

assurances

no

of

practical

also agree to shell out Treasury
cash to
purchase these mort¬

lion

One

given certain

were

all

cooperative

the President four or

things.

it from $8l/2 to $10 bil¬

lion, and

to

gave the President
what he wanted on two or three

in¬

National

antee

Congress

going along
with this request for $2 billion
additional for ,CCC, that "last

Federal

of

government will not only guar¬
lenders against losses on'

House

it were, this year
five,

as

million

'Mortgage Association "advance
i commitment" funds for cooper¬
ative housing. This means that

compared

Senate,

went

also changed

were

Furthermore, Congress voted
$50

:

comparatively
with 1954's

were

year

had

Corp.:

you

for

modest

and

year,

"fGclCnill^

aids. How¬
White House's de-.
housing legislation;

ob¬

before it the request for another
j
$2 billion for Commodity Credit i

He noted

$200

Housing For Aged

guarantees

financing

the

mands

idi

newal" loans

several;

getting
3hu

j

ever,

Banking Commit¬

made
the
following
servations when the House

in

«.

housing

Rep. Jesse P. Wolcott
(R.,
Mich.), the ranking Republican
on

the

leadership

Last"

tee,

"estimated value," in order that

That

pre¬

government

more

insured by FHA on the basis of
"replacement cost," rather than

year

correspondent

fliat

of

the

posed

Housing Bill

Democrats Load

this

a

House.

Miss.

darn

Willie

actually succeeded with this in¬

able

veterans'

and benefits, taking $3,515 mil¬
lion from the Treasury in fiscal

1955,

ar¬

vv

•military

to

Kill

knew

pro¬

on

adopted

"This Is The

Even

In

report

a

was

boost

On
'•You

"sustainable" goal of $34

range

cut

"three-year

a

military
housing
nothing but
a
designed solely for

other purposes.

gram."

billion.

cold

this

for

the

ing" loans, and made it clear
these could be used for various

m

passed last year,

was

Act after it

duce, it was stated, would be a
holding of Defense Department
military spending to that long-

and

provide

made

was

cold

However, the most that this
adjusting action to the era of
East-West good

Act"

"pri¬

a

undertook

the

government. When this "Agri¬
cultural Trade and Development

the

who

becomes

the

modities for foreign currencies,
in order to get these commodi¬

or

Title VIII,

was

top of the present authorized
$300 million) for "college hous¬

be lost,

necessary

price

to

these

eral

too,

can

are

«ff

keeping this form of military
housing outside the legal Fed¬
budget.
The new Congressional Hous¬
ing Act of 1955 also wrote in

but for the rise

possible without
-educing force goals. It is not
anticipated that the projected
of

scheme

of

Congress has
boosted
from $700
million to
$1.5 billion, the aggregate sum

have

a

could

deliveries

another

of

Then,

little

they have three at

And

caking

a

there,

kinds

some

con-

officials

prices

sets

ownership of this housing, bor¬
rowed the money, and
managed
the rentals, and who theoreti¬
cally had to put up 5% of the
cost, himself. Under the new

last

'55

cost

owner"

title

fiscal

in

pressed in price last

States

vate

alone

the

the

$595

stockpiling costs $151
a total
outlay for this

of

era

the

Under the expired

million to
purpose

Defense

once

theoretically there

Executive Ord^r

more

e,

aid

undertaken

loan insured by
which FHA

a

loan

a

Furthermore, the loans

Eisenhower's

an

is

160%
of
projects.

en¬

is authorized

in

United

much

as

It

insure,

it up.

year.

cost much

n u

FHA.
must

are

year

of good will between Russia and
4 i

1

boosted

I
if the

under

year

bil¬

.

It is explained that

lenders, under

last year.

port program,"

long-range "sus¬

tainable" level.
'•

present

President

other

than $1.8

more

lion above the

appropriated
funds
but
with
private savings from insurance
companies or other large

"metals and minerals price sup¬

total

a

In

the

larged
"regular"
highway program
at
$875
million,

was

year

%/ g-\-m m

fiscal

current

In

informed fiscal quarter.

an

In

the quarters allowance from the

expected to cost at least

upon
be

public

military personnel and using it
to pay for this
housing which,
however, is financed not with

JL fj It/

than

more

of

use

docking

•

IWAt

the

Then the Service in effect be¬
comes
the
mortgagor,

Agricultural
price
supports
cost $3,410 million in '55, $1,884

prevail
effect

the

XJL

with

funds.

Statistical Dep't.

WASHINGTON,
D.
C.—
the present lessening of

Should

tensions in the cold

•

y||^ gJ

from the Nation'# Capital

for

•

Thursday, August 18, 1955

..

tified

BUSINESS BUZZ
OTl

.

Post

Securities

Office

Square

Boston, Mass.
Phone HUbbard 2-1990

Teletype BS-69