Full text of Commercial and Financial Chronicle : August 2, 1956, Vol. 184, No. 5556

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fc£Rsn y

u Niv

MICHIGAN

OF

Reg. U. 8. Pat. Office

Volume 184

Number 5556

New York

7, N. Y., Thursday, August 2, 1956

Price 40 Cents

a

Copy

EDITORIAL

mds We See It
their

to

It is at such

homes

to

mend

their

careful note

constituents.

By DR. GROVER W. ENSLEY*

fences.

On basis of first-hand investigation

of Western European
economic and political conditions, banker reports out¬
standing factors in Italy, Switzerland, Germany, Holland,
France, and England. Concludes whole Continent is suf¬

time that the

to the "sentiment" of those whose votes will send

fering from

him back to the national

Executive

private life. There

or

retire him to

of course, a few legislators
ideas of their own and as
the voters to see things
they do rather than merely to sneeze when
are,

During
in again

the

survey

holders

conditions.

find out

end in sight;

past

four

weeks

I

was

very

wants; ample opportunities for raising our living stand¬
ards exist when defense outlays can be reduced; these

of

Western

European

Interviewed

economic

a

day and time, however, seek to
what their constituents want and to get'

they can. What members of Con¬
gress or would-be members* of Congress hear
from their home folk during the next three
months or so will largely determine what Con¬

will affect the completion of the nation's economy and
tall for basic changes in
C

fortunate
first-hand

were

file

and

control
.

.

-

:

most

can

what

is

A

disarmament whenever the objective

Both of the major political parties will, of
Course, Soon be cpmmg forth with platforms upon
which their members will presumably stand for,:
election, but, regardless of oratory, the
voter can in large measure determine what his
representatives in Washington do next year, and

year.

now

>

is the time for the exercise of that influence.

high, the individual
complain unless he has done all
that he can personally to let. the candidates for
office know uneqiiivocally that he wishes and
indeed demands that something be done to render

few

brj^ iortlnients
made as
to the present economic picture in
the United Safes as^eeh from abroad:
a

If taxes Continue mountain

-

portion of the country is .being slowly rehabil¬
by irrigation and agricultural improvement pro¬

designed to aid the very poor > peasants. This
is being supnlemented by United States assist¬
Furthermore, Sicily, having independent laws, is

program
ance.

■

v

'

Continued

on

page

invasion of South Korea in the
mer

18

and the Western World's

military; preparedness woefully
inadequate. After the Armistice in Korea, the United
States : Senate passed unanimously on July 29,
1953y

Continued

u-

by Dr. Ensley before the Fifteenth Stanford Business
Conference, -Stanford University, July 23. 1956.; The views expressed
are those of the
speaker and do not necessarily represent views of the
Joint Economic Committee or individual members of that Committee.

—

and

-State, Municipal

4

—D* S. Government,

Municipal Y

UNDERWRITERS
and

Securities

STATE

44'

AND

m

MUNICIPAL

and

Public Housing
.

HAnover 2-3700

CHEMICAL

BOND DEPARTMENT

ARE NOW AVAILABLE
•

ON

BANK
department

Burnham
MEMBERS NEW

CABLE:

and

VOHK AND

Company

AMERICAN STOCK EXCHANGES

STREET, NEW YORK 5, N.Y.

•

Dl 4-1400

OF NEW YORK
Bond Dept.

Teletype: NY 1-708

34

T. L.Watson &Co.
ESTABLISHED

Commission

Exchange
Exchange

Debentures Due May 1,
Non-Callable

Doniger, Inc.
1965

Payable New York & Canada

Price

103% to yield 4%

Teletype NY 1-2270

STREET

NEW YORK 4, N. Y.
FIRST

^OUthwtdi

MONTREAL AND TORONTO

Dominion Securities

Good body & Co.

6 KP ORATION

MEMBERS NEW YORK STOCK EXCHANGE

COMPANY




DIRECT WIRES TO

BRIDGEPORT

•

*

PERTH AMBOY

115 BROADWAY
NEW YORK

•

r

1 NORTH LA SALLE ST.

CHICAGO

Analysis

Exchange Place, New • York 5, N. Y.
Teletype NY 1-702-3
WHltehaH 4-8161

40

aport

request to

.

our

CANADIAN DEPARTMENT

25 BROAD

bank

McGregor-

Commission
*Vt%

Canadian Exchanges At Regular Rates

Stock

-

$50,000

Orders Executed On All

New York Stock

American

:

Montreal Metropolitan

CANADIAN
SECURITIES

f

Chase Manhattan

Exchange

and Brokers

1832

Members

Stock

'4

offices from coast to coast

Markets Maintained

To Dealers, Banks

York

120 BROADWAY, NEW YORK 5

TELETYPE NY 1-22S2

COBUHNHAM

New

THE

44"

Harris. Upham & CMembers

Net Active

INSURANCE STOCKS

REQUEST

THE FIRST NATIONAL CITY BANK

15 BROAD

BANK AND

>

•

TODAY'S INVESTOR"
SECURITIES

CORN EXCHANGE

bond

t

"POCKET GUIDE FOR

INVESTME NT

i

30 BROAD ST.,N.Y

•

LATEST

44 \

BONDS

of

Agency

Bonds and Notes

COPIES OF OUR

DISTRIBUTORS

Telephone:

page 20

on

•An address

porate securities are afforded a complete picture

dealers

Slate and

W.Eusley'

Graver

sum¬

of 1950 found the United States

Underwriters, dealers and investors in cor¬
of issues now registered with the SEC
potential undertakings in our "Securities in Registration" Section, starting on. page 28.

SECURITIES NOW IN REGISTRATION

through

worked for disarmament through the
United Nations.
Th.e Communists'

■■

grams

cooperation

League Of Nations. Following World
War II, President Truman Insistently

some

degree of trouble; the balance of the economy is boom¬
ing, and great progress has been made in diversifying
industry, particularly in the northern part of the country.
The government, having "been deprived of colonies, is
starting substantial internal colonization programs. The
itated

their

the Disarmament Conference of the

t

appears in
i

22

on page

Obtain
Norman Brassier

southern

not

■.444::-vContinued

:

ing the 1920's the U. S. disarmed to
a significant extent and maintained
a
minimum military establishment
during the 1930's. Other nations increased armaments despite efforts by
Presidents Hoover and Roosevelt to

.

voter must

(

J

in President Wilson's 14 points. Dur¬

rather briefly and then draw certain
overall conclusions as to the outlook

effectively influence or even
go on at Washington next

principal objective of U. S. foreign policy is securing

bases for disarmament existed..
Disarmament was a major item

economic picture. I, propose to
discuss conditions in each country

to

that

the peace and prosperity of the world; As a major step
in attaining this objective, the Nation has sought world

pean

I This, in other words, is the time when the rank

urges

adjustments; Concludes economic considerations support
every feasible effort for disarmament.

econo¬

will be prepared to dO when it convenes *+}mall, the multitude of. complicated
.'v
'
Jr: -V "v 4
-factors making up the Western Euro-

at the first of the year.

public policies; and

systematic thought, be devoted to development of tech¬
niques, both private and public; for assuring effective

and: political

leading bankers,
mists, and business executives; the
countries visited were Italy, Switzer¬
land, Germany/ Holland, France, and
England. Obviously, the impressions
I Obtained were somewhat superficial
inasmuch; as time did not permit
extensive- discussions or surveys of

this

it for them if

gress

no

having thC opportunity to conduct

their constituents take snuff. Most of the office
of

dose of inflation and

Committee,

that-big defense spending causes
substantial sacrifices in satisfaction of consumers'human

by political pressures. Re¬
ports optimism about America's economic outlook, with
"/ * '
present soft spots only temporary.

who have very definite
a
rule try to persuade
as

severe

Director, Joint Economic
United States Congress

Dr. Ensley points out

its curtailment is obstructed

capitol

Consequences

j

.

politician takes most
of the trend of thought among his
Even the statesman must give heed

a

Economic

-v
. By NORMAN BRASSLER
'4 "J. *-44;•/;,* Executive Vice-President, 4:4-v:: 4;'
4>. County Bank & Trust Company, Paterson, N. J.

j Congress has adjourned and its members have
returned

Western Europe Today

/

Unlisted Trading Dept.

IRA HAUPT & CO.
Members New

and other

York Stock Exchange

Principal Exchanges

111 Broadway,
WOrth 4-6000
Boston

n. y. 6

Teletype NY 1-2V08

Telephone:

Enterprise 1820

,

2

(478)

if'.'"t

' ■"

iinf

v

.

t

For Banks, Brokers, Dealers
''V ^'

1

t

* *

•

ii

i

i'ii

The

only

cover

field from all sections of the country
participate and give their reasons for favoring a particular security.
(The articles contained in this forum

potential Over-

more

markets

when

they to be regarded,

are

you

advantage of our exten¬
sive private wire system reach¬
ing banks, brokers and dealers
throughout the country.
'
So

offer

as an

AARON B. FEIGEN

intended

The

to

Pittston

Company—Aaron B.
Research Dept., J. R.
Williston & Co., New York City.
(Page 2)
s
1

next

^

.

.v

Research Department

£

J. R. Williston & Co., New York City
New York Stock Exchange

time you

The Pittston

to

American

Stock

PHILADELPHIA
private

to

of

1

g-|t

Principal pities

the

could
easily rise 20% to near 50 million
tons, of which Western Europe,

riding

past
has

•_

'

;

'

..."

Stock

gas this

tribute
1956-

year—is expected to con-"
about 50# per share in

1Vi0reover
irucKing
Moreover, trucking,

Stock

boom,

compared

use

loss

of oil and gas.

For

for by

accounted

markets

declined

to 16.4%;

from

exper-

con-

these
more

railroad

con-

sumption experienced the most
serious decline, falling from 22%
g in 1946 to 3.7% in 1955. Although
two
other major
markets, the
steel industry and electric utilities, expanded their consumption
sharply during this period, it was
*

—r

—

M

tel. REctor 2-78is

1=3

until

not

Trading Markets

were

Air Control

Products, Inc.

Company

off

pany

Lynchburg, Va.

from

than
of

$1

in

6%

>

than

more

392

consumed-

million

tons

1955,

500

in

in

1954

to

T.M.T. Trailer

dfmand

outlook

*

United Artists Theatre
Circuit

it

is

the

growth

1956

could

the

mwkete

that

for

the

industrv

_

,

is

coal

electric utility companies
a
Dreference
based

'for

price and availability
fuel

During the

'

Tel. HAnover 2-4850

are

increased

utilities

1956

on

coal

the
their

Iron

ginia,

West

tucky.

over

the preceding 12 months
This is
in contrast with
4 8% increase

a^

in

consumption

in

of

natural

fuel

oil

*

.

con-

indicating
growth

a

rate

of

demand

far

exceeding the estidouhlinj* nf nmHuptinn fmdoubling of production for

.

j

...

SamG

.

of

iron

ore.

In

steel

this

pected to increase at

an

is

direction

interested

more
,

and

in

labor

than

full

a

outlook

showing—between 4 and

ex-

accelerat-

5

amount

will

duced coal.

85%

of

be

company

In other

*

t" T

i T \u Y

«

*°
the

Pansioyn™ned^nodr lO^shoSd
add another
million

in

and,
strike

barring

tons

Of

operation

prolonged

a

earnings

full

on

coal

steel

operation^

in 1956 could range between $3
50
and $4
UD

per^^sharJ

from^^ouehlv

$1.50 per share in 1955.
share
its

in

natural

Clinchfield

which first

gas

Coal

CANADIAN

Pittston's

earnings

of

subsidiary—

began contract sale of

—

DELHI

PETROLEUM, LTD.^
Common Stock

WISENER

COMPANY

AND

LIMITED

73 King St. West—Toronto, Canada

export

A

pro¬

Continuing Interest in

words, about

volume

has

Continental Telephone Co.

been

"subcontracted," affording a cush¬
ionfor company,
operations should
there

be

a

setback

in

Grinnell

demand.

Parchment

Basic to Pittston's present
jpros-

perity

Corp.

Kalamazoo Vegetable

domestic

and

bright outlook

is

Y-

Keyes Fibre Co.

the

company's 60%-owned Clinchfield
Coal

subsidiary. The other small
mining subsidiaries,. Lilly-

coal

BOENNING & CO.
'

Established

brook Coal and Amigo Smokeless
Coal
(both

115

now

1914

New York

wholly-owned), are
contributing
profits
com-

pared

with

loss

or

break-even

it

1529 Walnut Street

CO

Broadway
Philadelphia 2, Pa.
6, N. Y.
LO 8-0900
ATT Teletype PH 30

7-1200

is

John B. Stetson Pfd.' V

1,000!

Manage-

ment believes that this represents!
one of the-nation's,largest re-j

gas exploration is continuing, and

"

has

been

the

current

is

of the 400,000 acres
held by Clinchfield

explored.

In any event,

earnings contribution

"bottom" figure for it repre¬
sents minimum ucuvents under a
acuw
nmumum
deliveries unuer

i

Public Service Coordinated i

;;r 4s, 1990
?

/

"

Pocono Hotels Units

:

I

Buck Hills Falls Co.

Guarantee Bank & Trust Co.
Pratt Read Co. Common

Samuel K. Phillips & Co.
Members

Phila-Balt.

Stock

Exchange

Pennsylvania Bldg., Philadelphia
Teletype

N. Y. Phone

PH 375

COrtlandt 7-6814

years- Proven reserves totaL
nearly 40 billion cubic feet although it is reported that only a

small portion
of gas rights

,

^

acres

^ m°re imp0rtant the

l™?™* facllltlGS. Wl11 pro.Yide

Trading Market

million tons will be exported in
1956 vs. roughly 3 million a year
ago — only
about 15% of this

growth, while gradual, should asincome in 1955, sume increasing importance over

rn,Tphiin?naS%iv? fapac*ty
y
million tons by
ioS#

i

work

* ^e steel industry. Also, natural'

°Jer the n-xt few years; opening
•Il®w 1?ln.p and expansion of

Branches
Bankers

Maintained in

< in

tL Pitts" °f "gh-grade metallurgical coal!
dynamics!

do.m.inatod by bituminous coal
Coal earnings, which pro-

.

Firm

higher
rates
per se—a condition which should
not pose any serious problems in
view
of
booming
production,
Moreover, while Pittston's export
volume is outpacing the indus-

try's

70

111 Broadway, N.Y.6 COrtlandt 7-5680

.

week

1897

—

Investment

is

?1yersi*ied holding company with serves cf high quality, thick-seam!
|n^eres^s lri trucking, warehous- metallurgical coal held commer-i
mg' and>
distribution, the cially and not yet committed to:

are

connection, do-

production

upward

Office Tokyo

Brokers &

by

selling
prices and labor costs, but as it
stands at present, feeling is that
any price changes would be in an

Co., Ltd.

Established
Home

including roughly 300 million tons*

c01nsump" capacity by early 1958. Currently,
varies
all
mines

steel, in effect making this type
coal of equal
importance with

mestic

affected

be

write

Securities

notably

above, The Pitts- —which contributes the
Company appears to present to the Pittston picture.

coal

directly with steel production, for
roughly one ton of metallurgical coal to produce one ton
of

could

factors,

or

Yamaichi

highly profitable metallurgical

arithmetic

'

economy.

information

current

Call

ves- million tons of all kinds of coal-i

,•

,

above

2

.

it takes




_

ground'outlined
P011™1 outlmed

and

atomiTpowe^coaf

tioneCoT mctallurgical

Teletype BS-430

.

V11 L

c

COURT STREET, BOSTON 9. MASS.

recently announced

Scarc1.^ °f coal-carrying

improved Japanese
For

could

*®?scnable figure and offset operations a year ago, but
by foreign shipowner Clinchfield, with its 300,000
?urOUpS who have been exPloiting of coal lands and estimated

Moreover

gas.

period31 lndUStry dUrlng thG

Telephone Richmond 2-2530

to

1957 could
see
a
still larger earnings gain.
Coal production will again rise
sharply and much of this will be

a

WlU

mated

CO,

Vir¬

ne-

sumption by electric utilities will
rise 230% over the next 20 years

c)-

and

and Ken¬
free-world demand

reserves. And

it has been estimated that despite

/o

places

Virginia,

Thus,

advent of

KELLER BROTHERS

few

three States in this country:

as

coal

consumption by nearly 23%

0.1%

New Offices

in

reserves outside the
Curtain are concentrated in

fn ?+utsta"dlung investment opporelecl tumty.^ Aithough by nature a

12-month

AprU

trie

our

found

the greatest

First

showing

a

^reene«aComparai

remaining at practically
stationary levels for three years
now
appear to be stirring due

range

Equally important,

several

branch offices

our

STOCKS

between $5.50 and $6 per share,
compared with $3.60 in 1955.

stlel ProflteerlPg

visualized for the

rioTthrough

visit

by

jective is to hold freight rates at

supports L Chr iong-tlrm

in Boston

_

highlighted

is

increase of

an

utiUtyandexport

Rare Metals

Ultrasonic Corp.

,

.

to

after

types.

longer

in

better.

or

Significantlv

,

1929

and

—

On

1955.

in

NY 1-1557

J A P A N E S E

slightly more
share, net earnings

per

Pittston

in

plans by the coal miners, mine
20%. This year, demand in these operators, and coal-carrying railmarkets has again risen and over- roads to form a joint coal
shipall production could reach or ex- Ping operation will
help develop
ceed 500 million tons, a gain of our export
markets, for the ob-

Eastern Industries

ESTABLISHED

gains

loss

As

the

tons

470 million in

Trading Markets
:m<

27%

from

LD 33

•

these

the

.

tons

Exchange
Exchange

Mobile, Ala.

cf

expense

27

with

1946.'for this type of coal will not only
During 1955, a sharp upturn in strongly bolster our domestic inexport demand supplemented the dustry, but will also produce a
continuing increase in steel in- magnified effect on the relatively
dustry and public utility "tak- few companies in this .country
ings," and mine output jumped that hold extensive, uncommitted

Scott, Horner &.
Mason, Inc.

•..

the trend.

million

Southeastern Telephone Co.

t

that

offset

to

result, 1954
•marked
the
industry's postwar
low
point, with total domestic
consumption of 363 million tons

Bank of Virginia V

Tele. LY 62

1955

able

reverse

Alabama-Tennessee Natural

HAnover 2-0700

$8 and $9 per share for Pittston
even if other activities were to
remain static. Obviously, the

tons,

Stock

Stock

activities

ing national production, England
will alone require an additional
50 million tons per year of import
coal within ten years,
There :are many kinds
and
types of coal. However, while
virtually all are showing sharp
demand gains, the metallurgical
grades are and sHbiild continue to
"steal the show." Steel production in this country -and "free"
Europe was approximately 225
million tons in 1955 and expanding rapidly. In contrast, supplies
of metallurgical coal are limited,
Unlike
iron
ore,
metallurgical

tremendous

York

New Orleans, La. - Birmingham, Ala.

should contribute about $2,50
per
share, a satisfactory though less
spectacular gain over 1955. Thus,
after deduction of parent com¬

40

than

more

miscellaneous

British estimate that, despite ris-

—

Broadway, new york s

American

wareware-

of

re-

the

than 42%

Exchange
Exchange

New

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

indicate net earnings of between

sumption

:

Members

Members

the

two

When

year

industrial

own

consume

million
million

ample, from 1946 to 1955, the
centage of total domestic

••

Steiner, Rouse & Co.
>

potential

home
v.

.

Members

37 Wall St., N. Y.

New

tonnage resultant - from railroad
dieselization and the growth in

McDonnell & To.

«

Part¬
-

.

range view, the size of the growth

a

r

SCRIP

&

•'

,

_

_

a
alignment of markets
period
during which the industry" ab-

Since 1917

•

..

sorbed

RIGHTS

Gas

its

may
Aaron b. Feigen

„

Earnings on coal alone
conceivably rise to the $6$7 per share range which would

to

major

American

Export shipments this

growth trend.
The industry's
poor
record

Specialists in

120

has developed what is tantamount
to a worlu-wide shortage of coal.

e r m

been due

York

portant, lack of important deposits
of, metallurgical coal abroad, there

the

decade

New

ging mechanization of mines,
shortages of labor and, most im¬

major,

a

o n

over

>

third market, export de¬
affords a particularly ex¬
citing potential. As result of lag¬

establishment

FRANCISCO

SAN

.

Wires

The

upturn

marks

Exchange

CHICAGO

•

1946.

mand,

rather

but

,

Weinberg & Co.,
City. (Page 26)

York

other

-

Teletype NY 1-40

BOSTON

n"

p a

*~~-

,

Direct wires

since

com¬

"flash-in-the-

120 Broadway, New York 5
WOrth 4-2300

coal

_

S.

ner,

next three years—an

of

gains

.

pany—Samuel Weinberg,

its capacity by
million -tons over the

expand

15

industry —
the exciting eara"

panies—is not
a
short-lived,

Corporation
Member

to

industry

lion tons of capacity at the 1955
year-end and indicative of an
and average annual expansion rate of

coal

the

New Yoik Hanseatic
Established 1920

plans
almost

Bought—Sold—Quoted

,

the future. Witness
+v->Wisconsin Central Railroad Comthe steel
„r.

that

Important to the investor is the
that the resurgence in the

fact

ings

Associate

over

fact

increase of
roughly 12% over the 128.4 mil-

Company

bituminous

1

the

Louisiana Securities

Feigen,

be, nor
sell the securities discussed.)
not

are

ing rate

Members

need broader
coverage, let the full facilities of
our
large trading
department
help you solve your problem.

■

Alabama &

Selections

,

take

.»

Their

-

Week's

Participants and

in the investment and advisory

Try "HANSEATIC"
You

This

.

Forum

A continuous forum in which, each week, a different group of experts

When Coverage Counts

the-Counter

Security I Like Best

•••'

N. Q. B.
OVER-THE-COUNTER

1

a

21-year contract with the Equitable Gas System,
c*n-

*

a

for. merSer
Pittston with the Clinchfield
subsidiary are .under st"dy-. The
arranSe/nerd: Wlll
b®
a^
of securities, and, should
merger be consummated, the
Continued

on

page

26

INDUSTRIAL STOCK INDEX
14-Year Performance of

35 Industrial Stocks
FOLDER

ON

REQUEST

National Quotation Bureau
Incorporated

46 Front Street

i

New

York4,N.Y.

f>>'

'i\ {y'-jt*\ J

.

Volume 184

,ir ^**V>f i "i *• V!i »:•'?• 'r*'\i-jVi\"P1,rt„,l 1' f *.
:.'
The Commercial and Financial Chronicle

ii*V'".

.

Number 5556

...

(479) 1 3
ti:-1

I NDE X

The Dynamic Decade: 1956-1965
Partner, Lehman Brothers

Banker-Economist

America's

declares

pos-

economy

—Grover W.

*

and government

Western Europe

We have chosen the most diffi-

of

A guess

lon*—but

ria t ions

within

the

of
six

next

months

usu¬

ally depend
upon
the

banker is

confess

government

among

spending pro¬

tori

to

Paul

they

what
am.

I

it

is

believe

I

•

as

equip oneself with the knowl-

long-term economic

a

20 to 25 years, is also
reasonably feasible:* 'The forces
upon which the long term depends
are
fairly discernible. The »time
element within which

is to be

one

right or wrong is far less narrow,
And, finally, the memory of the
listener or even the physical being
of the prophet is not
so

likely to last

long.

It is the ten-year period that
presents the real difficulty. The
factors

erate.

ing

control

of

limited

more

have

a

much

in which to op-

area

The whole problem of tim-

greatly increased because
accidents which would not
influence the longer trends canaffect seriously developments withis

many

in the shorter period. And, finally,
there is inherent in
to

medium

a

a

guess

period

the

related
much

greater risk of the prophet being
completely wrong within

proven

the .memory pf bis listeners.
There is, however, one way

-

that

of

decade.'!

theme "the

our

dynamic

That is. to avoid defini-

,

„

tive prophecy—which is just .what
i
<-r'
What I intend to do tin place of
sticking my. neck out all alone is
.

to

present some of the most im-

are

or

members of Cor-

address

Mazur
before
Annual Meeting, Bureau rf Advertising,
American
Newspaper Publishers Assn.,
New York City.
.
..
by

.

;

Frederick

economics

the study

of

'Garty__^___

RARE

12

-

.

•

-

.

:

.

•.

i.

•.

\

.

METALS.

-

,

CORPORATION

6
11

Shull

Discusses

Our

Balanced

Budget

and

Our

Further Responsibilities (Letter to Editor)

Richard

14

Spitz Takes Issue With Sumner Slichter's Views

Planned Economy and Inflation

1

on

(Letter to Editor)

16

Favorable Air Transport Outlook1 Cited by NorthernTrust Co. 17

'

Guaranty Trust "Survey" Says Goverement "Social Responsi¬

Mr.

—

35

Rigfrt! (Bo^d)
' Vf

'

.

Regular Features
As We See Tt

Rare Metals
Bank and Insurance Stocks

17

Business Man's Bookshelf

27

8

8

.

Einzig: "Banks Prefer Compulsory Squeeze"
From Washington Ahead of the

view

what

36

.

..

_

r

News About Banks and Bankers__.

have

specialized in

;

5

-

Our Reporter on Governments

23

t:Y '

Our Reporter's Report

14

For Worthwhile

Speculative Profit

28

SOUTHLAND

32

.

•

s

the future decade

Securities

Salesman's

The Market

Corner

15

amount

'

,!.

to

^Continued

on page

.

.

.

and You—By

Wallace Streete__

CORP.

2

State of Trade and Industry

The

RACING

16

The Security I Like Best

and Federal) should
at least $100 billion a

4

Common Stock
Washington and You

24

Twice

40

1

Weekly

COMMERCIAL

The

Drapers'

Gardens,

London,

E.

C.

Around $1.75

Eng¬

ary

WILLIAM

B.

Park

DANA .COMPANY,

Place,

RETctor

Members New

25 BROAD

HERBERT

f

-i-i •"

Nashville "t




#

•

Schenectady
.

i

Glens Falls

•

'

Y.;l-5

j

!

u

•

Thursday
issue)

vertising

the

Aug.

Subscription

President

Possessions,

in

office

at

state

and

every

news

and

Monday

Territories

Union,
Canada,

of

Countries,

•

(com¬

market

quotation

clearings,

Chicago

Offices;

3,

111.

135

South

(Telephone

La

of

creased

per

year;

per

in

STate

St.,

2-0613);

rate

made

over

from 2

tracks

million to

at

has in¬
over

8

million.

year.

Quotation

Record — Monthly,
(Foreign postage extra.)

New

of

attendance

annual

racing

Send for latest

the

fluctuations

in

Report

General Investing Corp.
Members

American Stock Exchange

of

In

cost

year.

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

at

Publications

Note—On account of

the
Salle

and

$40.00 per year.
;

and

Other

Ba*k

1945

greyhound

Members

and

per

Since

S.

$63.00

greyhound racing

built

Eighty-day Track Meet
Scheduled Opening Aug. 30.

U.

States,

$60.00

$67.00

Other

ad¬

corporation rnews, bank
city news, etc.).

—

modern

was

$1,000,000.

New

Rates

United

Dominion
Other

1956

(general

and

/*

Editor & Publisher

2,

post

Febru¬

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

Y.

9576

SEIBERT,

statistical' issue

.records,
^

Worcester
>

at

matter

.

TELETYPE N.

Chicago

SEIBERT,
DANA

Thursday,

plete

Boston

1942,

Pan-American

;Every

•

D.

WILLIAM

ST., NEW YORK 4, N. T.
•

to

25,

Southland, America's most beauti¬
ful

Dana

track

second-class

as

Subscriptions

York Stock Exchange

TELEPHONE HAnover 24300

Publishers

New .York 7, N.

2-9570

B.

Company

Reentered

T'

U. S. Patent Office

by William

1956

^

Reg.

•

and

CHRONICLE

FINANCIAL

PREFERRED STOCKS

Spencer Trask & Co.

Los Angeles

1

.37

:

Securities Now in Registration

,

to

•

35

:

Securities.

Railroad Securities

lies

Wires

Philadelphia * Chicago

'

Public Utility

.

Exchange PI., N.Y.

:'
•

possesses many powerful ingredients.
Government
expenditures

local

40

Teletype NY 1-1825 & 1-4844-■/

19

Direct

Observations—A. Wilfred May

25

Albany

Singer, Bean
& Mackie, INC.
HA 2-0270

8

Prospective Security Offerings
.

•

38

;

Powerful Ingredients

'

10

NSTA Notes

and .a substantial lossof the^ prcvious sense of well-being.;. *

I

News^—Carlisle Bargeron

Mutual Funds

lation with its companionate decrease of
production and profits

which

Long Bell Lumber

11

[__

Indications of Current Business Activity--

:

Doman Helicopters

-

Dealer-Broker Investment Recommendations

can

upon such precepts as these <Jo
my
economic principles depend,
and upon them you may find the
basis
0f
disagreement with the

Pacific Uranium

Coming Events in the Investment Field

:

\

_l_________Cover

(Editorial)

Copyright
-

.

1-4643

f,.

-

land, c/o Edwards & Smith.

■

Teletype NY

35

—

>.

V

For many years we
tft

Broadway, New York 4

~

DIgby 4-4970

Published

f

J. F. Reilly&Co., Inc.
42

bility" Projects Generate Rather Than Alleviate "Evils"

^e elevators with grain and the
pohticians with concern. It can
fill the inventory and meadows
with products ?and businessmen,
with worry and even panic. .

(both
♦An

WHitehall 4-6551

4

9

Plan Formation of Pacific Coast Stock Exchange

.

related to consumption can nil

it stretching into

cooks—whether they

economic

"7

______

The American economy as I see

Economic Maverick

However,

STREET, NEW YORK

should

I

productivity determines increasing or decreasing prices—inflation
or deflation. I believe that pro¬
ducti on is important, cbut its sustained heaUh and growth depend
«P<m continuous and equal consumption. I believe that production is not the goose that lays the
golden egg—for whether the goose ■;
iays a golden egg or 311st lavs an
W1^ depend upon the ability
consumption to absorb the production offered. Production up-

„

/

WALL

between dollar wages and labors

-y?
.

Obsolete Securities Dept.
09

5

i

.Unions Raise Wages (Letter to Editor) ^_i._-_^

this
)

orrist. I believe the acts of peoole
and not the facts of money rates
are most important. I believe that,
generally, * not subtle monetary
policy but the simple relationship

portant ingredients out of which
I believe the economy of the next
wav
in
ten years will be formed.
Then, ahead.
together,
all
of us
can
make y,.
prophecies.

:

.

'

.1 have decided to do.,

4

___!._

-Alfred.io

*.

avoid- the risks- that are so
and so inherent in the implica-^also assure a subsequent decumutions

*

interest

.v.-*-' ,/■"=•: '•*..

y'-'

Theodore & Kliston, Taking Issue With Neil Carothers, Holds

'^rhe accumulation of inventory
give the sense of prosperity
yreat. and create book profits. But it will
;

to

bond,

date of maturity, date
issuance, coupons attached,
trustee, coupon paying agent,

Pressing .City Problems and Taxes—-Roger W. Babson________ 15

edge necessary to know what, the phasis on people, their needs, their
government plans to do in the desires, and their wishes^-whether
matter
of spending, and
what they; be biological or sociological
businessmen are doing in the matpsychological. This- also paeans
ter of inventories.
'
'
;that I am not a quantitative econTo make

-1''V-:'

-t-C. ;D. Blyth and E. B.

the material relations among peopie. That means I place great em-

It is not too difficult

of

Non-Resident ^Ownership oLCanadian Industry

the obverse,

may,

should be defined

guess, say for

J
■'

1.Stocks—rFrank..M. .Cryan

<

banking

my

.

it

as

the

given:

I should
also

true

of

be

Near-Term Revival Prospect Requires Business Vigilance

am,

ask,, "Who says
is a banker?"

that

co^frss

Mazur

i c.a n

businessmen.

I

economist?"

some

that

Be

b y

e s

m e r

fear

an

economist

decumula-

tion of inven-

A

I

that
-

when

accumulation
or

indicate

title

Telephone:

I should indicate

say

friends. I have heard

and the

gram

in-

together
with a few associates, a maverick
in the field of economics. In fact,
to paraphrase the old story about
the piccolo player, there are even
those who
ask, ''Who says this

the

economy

—George C.

v

Vf'-T'*

.

to what school of economics I be-

The

tions.
va

going to

request that

of

Estate Elamuug and Its Tax Aspects—William W. Vicinus____

should

I

of economic cook I

nature

we

information

rate,

,

Knowledgeable Investment Brokers to Awaken Dormant
same

bonds,

3

Midyear Construction Review of Contract Awards for 1956 "

:&east of Suez—tlra U.Cobleigh_y_

was

making inquiries regarding ob¬

following

Full

1956-1965—Paul Mazur__._-.___

perhaps

of sim¬

use

ple observa¬

In

Cover

gredients in different ways and
with different results. Therefore,

mediately ahead requires merely
the

Today—Norman Brassier

The Dynamic Decade:

officials.
Bleu—can mix the

don

economic

prophecy,
related to the future im-

area

Cover

<

.

cult

'

Ensley

solete

many

men

Page

f

AMD COMPANY

Economic Consequences of Disarmament

future

powerful ingredients, as large continuing Gov¬
ernment expenditures; support from foreign aid; quickening*
highway building; increased capital expenditures by industry; '
and the consumer's general desire for raised living standard.
Concludes realization of nation's potentials over next decade v
requires adequate management and prop°r control by business- .
sesses

B. S.

Articles and News

By PAUL MAZUR*

York

funds.

80 Wall St., New

York 5 • B0 9-18W

4

The Commercial and Financial Chronicle

(480)

...

Thursday, August 2, 1956

r

in the first half of 1952, but

Wai

if is far above any other first half

Midyear Constraction Review

,y

in history,

01 Contract Awards for 1956
awards for future construction is
reported 10% above last year's record with each major cate¬
gory setting a new record by F. W. Dodge Economist who
half

First

contract

year

-:*

L

—:—

-

—• •••

records

states set all sorts of new

aF

eni-m,

4-

1

during the first six months of 1956

the

despite

fact that June

got out of step
with the other

and

months

a

of

end

to

of

f ir

half in

a

ple,

t

s

Dr.

George C. Smith

way,

of .these

One

half

as

is

whole

a

$277,000,000 for religious build-

1

that

was

a

+

L

«..ii,iin.r

■■■■'.

Awards

$5 699,000,000,

tuidi

lit'tle 'iess

ui

•

•

r

the'future of actual coiisiruc
me iuiure oi aciuai construe-

Record.
xccuiu.

*

•

'>

' -r

•

the June total of $2 2 billion

^

even

jSnhnnlG'
sjliools-

f

'The

The

i

i '*

*
,

is '-that
that

Another

1

„

t,

,

lij&attoMf^^
educational
n/lnootinnol

,

onH

ibv

by 3%.

in^nai
increased

housing

reported. '

record,

new

5%

The

a

apparel and textiles and

The differential, reflects
costs

and

■

larger size of
.

frpnd

frftm

aw„v

jng workers more the

»nartrnents

;ne lrenf*f*ont aparjmeniw

by rthe steel strike;

.-toward single family homes which
time' mont innnrl

in

voor'o 'evtirl

loaf

•

V

u

on

and was mentioned in last year s mid

record,

a

strike,
Tnnt
look

tnird

tact

situation

.

isanat

the

probably the

is

both

St, S
actual

for

dominant

construction

and f0r contract awards-

Total
first

contract

half

of

history

category

the

last

also

year.

set

Non-residential

a

This

mark$

continuation of

a

the

above

*

since

the

end .of. World

War

II.

'

ing.

most

though

Qf

above the
Each major
record,

new

a new

record

set, the

was

'

,

Public

still only a very

was

'

;

Works:

*

■

unbroken

rise since the end

War

II,

reaching

the

total was only 4% ahead of 1954,
increase which was so small

tremendous total of $2,154,000,000
jn the first six months of 1956.

compared

This

an

to

those

of

previous

is

a

record

new

26%

ahead

years that it aroused fears of a of the previous record which was
leveling off ,-in school-building set last year, and it indicates the
building, at programs at a time when the num- groat emphasis being placed on
$5,699,000,000, was up 5%
(al- >ber of children born was setting such
heavy engineering projects
though the number of dwelling anew record.
as
highways land flood control,
units represented by the contracts
Manufacturing Buildings: While "Public works" as used in this
was down
3%) and heavy engi- this was not the largest class of c^^ficatinn refers to the nature
neering, at $2,893,000,000, was up
non-residential

608,000,000,

was

building, at $4,11%
ahead! of

last year;"residential

buUding^

21%-

while it set

;

The

emphasis in the first

half

no

and

new

records, it is
perhaps the most significant of all

»tocreas^0'Awards
facilities,
public construction

and

of all

types.

shows

tory

up

and

and in

tion is

Business investment

in sharp gains in faccommercial

utilities.

Public

for

manufacturing buildings to$1,096,000,000, an increase

tailed
of

29%

last

over

year

buildings

above

construe-

far below the record of

particularly strong in high-

1954.

This

and

88%

year's figure is
more

than

two billion inspired by the Korean

of the project rather than to the
ownership. Most of the category
is>.of course, under public owner-

utilities*

owned

little

a

contracts
under
It

types

more

for

far

so

this

than half the

utilities

have

been

private ownership.

should

facts

,

-

-

increase,

be

that

clear

from

these

while

practically all
are at high
principal boost-this

of construction

«

nSnd

innvm'enf
-

fhat

^^lf n?

lic works and

BANK STOCKS

strike left metalworking plants literally hanging
It will be touch-and-go from a steel supply stand¬
for the balance of the year. The end of
the strike touched off the worst scramble since the walkout of
many consumers

1952, stated "The Iron Age," national metalworking weekly, the
»
t - •'
- '
? '
When the strike started, finished steel inventories in consum¬
ers' hands, including work in process, were at a record
21,500,000

current week.

„

_

Send for comparison
of 12

largest Philadelphia Banks

„

.

The strike cost

tons.

a minimum of
11,000,000 ingot tons, or 8,250,Meanwhile, consumers used an estimated 7,000,leaving inventories in a sad shape. Many

000 finished tons.

000 tons of finished steel,

mills will not turn
details that must

signed.

wheel until late this week due to the many

a

be cleared up before

After that, it will take

two to three weeks before their

it

was

^

individual contracts are
some companies anywhere from
production level returns to where

before the strike.

Meanwhile, the cost of the strike to the steel industry

estimated

at

$335,000,000 including out-of-pocket

The

to

race

expense

The wage loss to the steel-

1

.

■

replenish inventories in the months

ahead

virtually all products, including sheet and strip, plate,
structurals, bars, tinplate, and oil country goods. Automotive is
back

in

the

picture for

1957

model

requirements. I Oil

and

lron Age

Points outAlthough they laid in heavy inventories before the strike,
tinplate consumers will be back in the market both to replenish
stocks and to beat an expected price boost when their latest price
contracts with steel firms expire in October.
^

On the labor front,

contract demands from

steel

John

The mine workers

mills

L.

braced

themselves

for

Continued

J.

are

|

pleased

A

-

to announce the

on

page

incorporation of

Waldron & Co.,

El

Paso

I I

-

Town t&

Lane,

i

and the election of

Country Village.

MAURY J. KESSLER

Two With

STROUD & COMPANY
INCORPORATED

(Special to The Financial Chronicle)

HARTFORD,
Wallace

PHILADELPHIA 9
NEW YORK

•

PITTSBURGH




•

ALLENTOWN

•

'

LANCASTER

now

•

SCRANTON

Cooley Co.

and

Conn. —Chas.

Louis

affiliated

A.

with

Rossi

of

change.

the
»u.

E.

! WALDRON &

are

\

York

I"

Stock Ex¬
,

•

INVESTMENT

:

CO., INC.

SECURITIES

mem¬

RUSS

New

y.

j

Cooley ;&

Company, 100 Pearl Street,
bers

President

;

i

BUILDING

*

*

.

SAN

new

Lewis, head of the United Mine
look for something equivalent

will

Zangger is with Rudd and Com¬
pany,

gas,

construction and freight^ car building are hungry for steel. ,fjStructurals and Plate are being snapped up at premium prices asked
?r£e^S'- gfay ™ar^et operators and conversion sources, "The

We

Calif.—Don

will

embrace

also in utilities.

SACRAMENTO,

was

during

earnings based on what sales would

have amounted to during the walkout.
ran
about $250,000,000.

(Special to The Financial Chbonicle)

/

.

„

Joins Rudd & Co.
V

came from the

steel

Workers.

commercial, indus¬
and
utility buildings, and
public investment in schools, pub¬

^m

the ropes.

on

point for

trial

PHILADELPHIA

if

tho

nf

>

in

lor

monn

secondary^effects of the steel strike;

vestment

year

'for

responstolc for

•^4<r

e. •

levels, the
has come from business in¬

Maintained in all

-

d^nartment

workers

Public Utilities: This group also
set a new all-time record at $738,000,000,
nearly
8%
above
last
year's record. This category also
refers to a construction type, arid
includes both privately and pubyear,

Trading Markets

rpnm

-

-

^ ahutd°™d ^

eluded.

licly

Active

-

The

.jContracts

for
public works continued their alWorld

.

,

total of

$106 million

year

awnrv

The, ageJneJ ,r^p°ned th.at to^'j.Ur^o^S0y^en^ during
up 33,000 to 1,259,900. The
declared wai attributed mainlw to Haimc
department - aeciareo, was aurioutea, mainiy to claims

thp

1

small fraction of residential build-'

increase every single

an

highest

total

but the

in

amounted? to

the

in

last year,

steady growth which has resulted

Moreover, tbe 1956 figures indicate a considerable speed-up in
the rate of growth. In 1955, even

10%

and

set

record

^

awards

1956

$13,199,000,000,
in

an

steel

V

the week ended July 14, went

,

i

'Record thA%Wrd^actf?to !h WWW?* awards were year, for below fast year,. Contract
11% two-family houses rose 31%
ahead of the record set last 11%

extraneous

ThP

''

'

ficlence building category (primar- v year review. Apartment contracts
-though it was below June of last iiv'srhools^ was thpsppond lar^-V amounted to nnlv
m ill inn
'
lu

a continued tapering-off in claims filed
by workers ineligible for pay during plant vacation shutdowns.
Largest, declines, the department stated, were reported by
Massachusetts, With 6,800, and North Carolina, 3,900, due to the
slackening in the auto industryland,in a large refrigerator plant
in Indiana brought" a drop to 2,160 there." Pennsylvania, the agency
said, reported that a drop in claims from apparel and food-process¬
ine workers'mom th'
ing workers more than offset claims filed by coal miners idled

last

above

.I / ' I

agency said state employment security agency reports
attributed the cut chiefly to fewer layoffs in food processing,

units this year.
The
show, a /continuation of
show a continuatiqri

awards
awards
the

a

than

i

.

~
:
Residential

nrrta
Buildings: Awards
itesiden
for residential buildings totalled

'

p,y ^^^56 ..*511% above $1.totel^ the
200,000,000 was Tl%

:I I

Initial claims- filed by workers for unemployment insurance.
during the week ended July 21, last, dropped by 18,200 bringing I
the total ,10 239,900/ the-: United States Department of Labor s

MiaMMW#
'J "v'

A.,,0^0

Building.

vommercial

"

tot!!

The

< >-.

ards, with all-that this implies .sented
Spending,
tfon'^pendtag.

<

and Connecticut.

tremen-s^^ious record ^t^t^ar^^id
? floor area was also a
5 "
by

11,•

4-U

Cb

Smew'r™

speci-

first

^

-

n An

.

LUC

the
the

^cn

rnu-.

■

for commercial buildings made up
the largest single segment of non-

should not be lost to view,

the

ill

•

sim¬

cohesive
but there

<

noticeable rise occurred in total industrial production for
country-at-large in the period ended on Wednesday of last
week as many industries resumed normal operations after shutA

The

.

•first six months of the year
fied—"— • * '

speak

oil the

Religious Buildings:

ar°eDtnotordfnarilf made' publto!
ftgS? and^re^totals % III

diffi-r

little

a

cult

considerably lower levels. Tnis
year's total of $240,000,000 is 14%
below last year's level.

Trom

the

period as it
does, the June
drop makes it

|and Industry

Index;'•>

Production

Business Failures

•

i

.

slight decline.
Coming at the

Auto

ways

■

registered

Food Price

in

*u
ings was 3% below last year's I: downs for vacation periods. ...
and schools. Shifts in the record, but it was still far higher .
On -Friday test. a settlement came in the nationwide steel
various categories have tended to than
any
other
earlier;
year,
strike--with the signing of an agreement assuring three years of
balance out so that there is no strangely enough, the physical „| uninterrupted labor peace in this basic industry.
plinncfA
flip DPAnArtinHR nf 'nilnUaII!
AKU
change in the proportions of pub- volume in the first half of 1956,
The 650,000 striking members of the United Steelworkers of
lie and private contracts in the measured in floor
America are expected to return to work this week after individual
area, was the
totals; as in the first half of 1955, highest ever recorded,
contracts are completed with the 12 major steel companies.!
private awards were 69% of the
u„,er
No„.ResldentiaI
Build,
total, and public awards were
With respect to the condition of employment in the United
r>uh,ir, RU,M(n,rs totaled $166
31%*
States it was reported that initial claims for unemployment insur¬
#
;
million, down 6% from last year,
ance declined 19% last week, but were 11% higher than those of
'
but well above any earlier year.
As is our custom in this mida year ago. There were numerous recalls in the automotive indus¬
Socjal
d recreatfonal buildings
year review, we are making availt
record at $161 million
try and many workers returned to work following the vacation
able certain details of the Dodge aet
shutdowns. Claims fell most noticeably in New York, New Jersey
3%
!ast vear
to

awards for future
construction
in the
37 eastern
Contract

respectably

Commodity Price Index

at

business

new

emphasis continuing m two mam areas
-/;
facilities and public construction.

notes

Carloadings

peak of $300,000,000
1950, and since "then
first-half awards have fluctuated
set

was

»

Output

Retail Trade

V

The

large.

Corporation

Vice-President and Economist, F. W. Dodge

are

^

Production

Electric

.

State of Trade

in recent years,

tract award totals

Steel

The

has not been doing so well
although the con¬

group

SMITH

By GEORGE CLINE

H

Hospitals and Institutions: This

FRANCISCO 4*

PHONE GArfield

1-2000

26

Volume 184

Number 5556

The Commercial and Financial Chronicle

..

\\

}

,

*

for

•

•

Knowled geable I a vestment
Brokers to Awaken Dormant Stocks

•

By A. WILFRED MAY

By FRANK M. CRYAN

RIGHTS OFFERINGS AND THE SHAREHOLDER
Writer attributes stock

The American Telephone and Telegraph Company's prospec¬
tive offering of cive and three-quarter million shares of new stock
to its

the

or

of

ance

additional

infliction

The

dilution

of

of

the

share¬

holder's interest under certain conditions

The

sur¬

rounding additional stock issuance is more
easiiy discernible, in the case of closed-end in¬
vestment companies with their activities con¬
centrated on arithmetically-calculated money
changes.

But the principles

rights offerings
to

the

ness

companies,

from

the

v

or

shareholder who
the

are

s

business operation
course,

does

requirement
less justified.

exercise

his

rights—is the relation

The

"Discount"

Stockholder

Let us first calculate the result

Who

equity

of the

outstanding

shares

ATT

law.

not

the

actual

Frank

150,

is

worth

$7.50.

the

But

book

equity

as

result

a

of

m.

ac¬

This

we

can

be largely
tributed

Cryan

tKo,

but 250, and the stock's market
price still at 180. With the l-for-10
rights to subscribe at 100, the one right given each outstandingshare

have

stocks

countancy,
medicine, and

Assume that the book

were

f*ct

at¬
to
that

considered to be the mirror of

stockholder—

.

.

'

\

•

-

"'
non-subscribing

,

the

1

•

*

dynamic
has

•-

-

Within

witnessed

been

our

rise of 124%*

economy, a

the

In the same period consumers' debts have
increased
292%
while
industrial
past eight years.

Has lost in book equity
Has received from die sale

£

$14.00 gross
of his

Such dilution loss similarly

metical calculation in the
in exact money values,

of

case

be Said to suffer

(2)

The

When,

exceeds

the

an

,

<

V

easy

investment companies dealing
stock is offered below*tassejt

Stockholder

within the

Does

Not

equity value; there is
The

Subscribe

The

will offset the gross dilution because the market price on which

case

of

value.

In the

U.

w

.

Hence from

a

has actually

market), grossing him $72.70.

book

gained

equity viewpoint,
an

(10

x

The dilution
$4.55

per

Mr.

the

the

holder

stock

and

comes

out

even.

This

is

so

the

dilution
on

looks

for

Folsom

M.

upwards of

Zellerbach

of

into

nutshell

a

he

when

page

35

mant

proper

an

of

acceptance,

firms

that

appreciate
the

StCUC I Tits CLMTANY

listed

There

—




i

stockholders

new

head-on

clashes

houses

where

ZTintt intSlige^TrP-

un

search

where
nf

iudgment

snan

h

for

thP

wnrst

the

rrmct

formation'.
tions

and

play

outside

role;

a

expecta-

where

are

the
and

value

true

unlisted

literally

Dallas, Texas
HOUSTON

tive

because

of

The

Rights of the

Each American
in the world
in

Investor

has every right

to become

a

partner

available

any

corporation
Ameri¬
free enterprise.

which operates under the
can

of

system

Continued

on

page

lack

&

Poor's.

of

are

includes:

Department with up-to-date informa¬
major Canadian companies.

A Research

V

tion

on

Correspondence Department set up to deal
by mail.

V
V

/

A

r

in securities

Private

V

teletype

Canada and

to

service to

offices

our

across

New York.

Membership in The Investment Dealers* Associa¬
tion of Canada, and through our affiliate, member¬
ship in leading Stock Exchanges in Canada.

V

Inquiries from investors
>

are

invited.

M'Leod,Young,Wesr & Company
LIMITED

Investment Dealers Since 1921
50

KING

STREET

WEST, TORONTO,

CANADA

inac¬

sponsor¬

some

high

\ /■;: l';

all

of

us many

which make

complete investment service to United States investors

or

to

buy through

can

Canadian securities

securities.

thousands

ship and the need of
^Standard

of

Stock

inner

ful thinking are ever-present and
finally — where the fine line is
constantly being drawn; between
investor and speculator.

very sound
investments. Some of these also have attractive growth

quality

Our

brokerage

country,

best
hnl

each other; where inside in-

anCe

In the
capital is needed

conviction

and

with

ontimism-

Xcks

into

United States investors

frequently

companies whose stocks

•

offsets

Sound Canadian Investments

about through lack of
knowledge of the com¬
on
behalf
of

throughout the

off

facts-

where

guesswork-

Dessimism.

re-

the support of stockholders

old saying "you can't

The writer holds the

•

iudgment

Drudent

cimbn-nure

js needed by management.

What's Hidden

public

investment

LUFKIN

wWp

against

stated:

physically impossible for
financial
analysts,
underwriting
firms,
over-the-counter
dealers,

♦

weiffhed

100,-

that it is

Riverside 5471

the

pany's
securities
managemtent.

August 1, 1956

odessa

played

are

'hac^knnwlpd^p^^whprp
arp

the

brokers' inertia. This is

brought

•

hunches

where

bu.Jds a much greater,

corner.
This
is
especially true if earnings are declining, and particularly at a time

in
their
proper
setting.
securities are laying dor¬
marketwise, largely because

lack

of

•

Exchange?

vided, however, /that such a pro- emotions and high-powered realgram is well coordinated by qual- it
^.e on opposite sides; where
specialists tin this field.
pocketbook economics and wish-

bag of diamonds if they are
hidden
under the
carpet."
You
must take them out and display

Many

general partner

midland

"V

where fear and confidence, tangi-:
bles
:and
intangibles
conflict;

acceptance for its security, pro-

a

them

as a

•

.

The New York Stock Exchange
of and in itself is a modern arena,

their ;

to

possibilities.

Can't Sell

•

TIMOTHY II. DUNN

worth

respect

nation's financial community, ineluding financial periodicals, etc.
A company in good standing with
these particular groups certainly

continued
growth of the United States econ¬
omy
for the next 20 years will
amaze the world, and
very prob¬
ably ourselves." Of course there
are some "ifs"—the biggest one is
"if free-enterprise anjd free indus¬
that

expect

There's

fort

program

the whole
next 20 years

the

projections of

sell

Mercantile Commerce Building

any

stockholders, and especially those
who are primarily responsible for
influencing investors, namely; the

try remains."

of

of

position

Zeller-

Crown

the

Stock

on

we announce the admission of

as

York

bach Corp. wrapped up

it is with pleasure that

Effective

with

describe

New

What Is the New York Stock

»,

the

present stockholders and potential

event

"I

Continued

position,

when

D.

which is • selling

because

takes

success

the

000,000 TV sets, most of which are
expected to be in color. Mr. John

below its equity value, subscribes to the new offering, he is not
diluted

the

of

to invest extra
of those inter-

Exchange/

for

of

Frank

Mr.

RCA

subscribing shareholder

of

Colbert, President of

a

advantage of $27.20.

situation wherfe

that

writer

way

able to

discount their

management's

xeiescppe

L.

L.

-

(3) The "Discount" Stockholder Who Subscribes
In

The

as a

only 24%
were

function

performance months in advance.

solidify

*1,.

1975.

our

Stocks usually

» lations and
pro-

stock

viewed

usually

^expect strengthens thestockholder's

now

mon

money;

...

than

you

sellers

Chrysler Corporation is projecting
t o m-powered 1 automobiles
by

on

share);

are

.

.

holdings, amounts to $45.50

when

advance and vice
versa—when you have more sell¬
ers
than
buyers stocks decline.

more

S.

ATT, the 10-share holder sells 10 rights worth $7.27 each

the approximate

we.can

Looking Father Through the

(representing the difference between the subscription price and
his retained

offered

stock adequately; only 10% of the
population could consider a com¬

population is-expected
'v>,
...
to 213,000,000/people
^ Combating Misinformation
against the present 165,600,600.
It is just as important to combat
Employment should go up to 85,- misinformation
about ; corporate
000,000 against 66,000,000 now em- management as it is to dissemiployed.
nate good information, in order to

recoupable market value of his rights

the price of the right is based, exceeds the book

e.;

stocks

increase

to

dilution suffered/ even ly

no

75%,

jecting a six-hour working day
agaist the present eight, with a
25 % increase in take-home bay.

the other hand, the outstanding stock's mdrket'price

non-subscriber.

up

next'2ff-years..

Our 'forecasters

Thus the shareholder may

Who

what

to

per-

to be only an intro-

seems

duction

56%, and

up

before tax

sonal income
which

arith¬

"assessment" tp protect his equity status,

"Premium"
on

its

$6.50

new

value and at less than market discount.

is'

production

applies with clarity and

wh&fe

•

7.50

./I/ The resulting net loss being.

-..i

r

right-_

market, i.
buyers

all

a

between 100 and 250). >
So in this "market

situation,

underlies

Evidenced by the
rise in

,

securities

that only 23% of the adult popularion
could
define
a
common

corporate development must
dynamic era.
be basic, and progressive—new or
extraordinary additional financing depends on
the stock market, which is the
soundness
of
a
company's

living in

are

"

the

offering would be reduced from 250 to 236 (1/11th of the difference
'
;
discount"

of

jectives and should be carried out
and planned to meet the needs of
a
particular company in a given

fundamental prin¬

one

which
free

immediately

the non-subscriber in the

on

market-price-under-equity value situation.

we

era,

a

think of engi-

of

Subscribe

Not

There is

ciple
in

peering,

Does

the

their good offices.
Any
strong
financial
advisor's
program should have specific ob¬

One Fundamental Principle

i alized

p e c

ton

prevailing market price to the equity value.

(1)

have

the

professions. in
this push-but¬

absence of dilution—and then onlv to the
not

with

the highlv

its needless-

because of

price is to

and understanding, not
alone of the stockholders but also

your com-

advance

The crucial factor determining the presence

r»idy

PilVHIVPi

>

We

similar to those pertaining
enterprise.
Dilution by in¬

motivation, is, of
Wilfred

A.

stock

are

industrial

vestment

best

extraordinary growth of U. S. A.?

workings of

and

the

at

backlog

Exchange firm to shake the dust industry. Such a program is paroff of these sleepers and extoll ticularly needed for corporations
their virtures to the public and whose securities may be relegated
into ithe category
of second or
living in a business age the brokerage fraternity.
"
of intense
Securities are inanimate things third grade equities in different
industries.
specialization.' and move up or down, only be¬
To name
but cause of public demand—or lack
A recent survey made by the
of it,
*
"
/New York Stock Exchange shows
only a few of

question is: Will

pany's

in¬

through

Mr. Cryan advises firms to secure backing and
understanding of brokers to better interpret to individual and
corporate clients their investments.

shares.

replace

loans, experience

good

knowledge.

1,409,000 shareholders serves to highlight
uncertain concepts concerning
and
other
impacts from the issu¬

prevalent

dilution

to

or

bank

or

ceptance

dormancy to lack of public acceptance
broker's inertia which, in turn, may be due to lack of proper

v

expansion,-

surance

has taught us that the best way to
facilitate the selling of securities

of the brokers, who are to a
large
extent, responsible for public ac¬

Partner, McLaughlin, Cryan & Company

.

5

(481)

t

Montreal

Calgary

Ottawa

Kitchener

Winnipeg

Quebec

London

Hamilton

Sherbrooke

Vancouver
New York

37

The Commercial and Financial Chronicle...

6

:Sf;:

Thursday, August 2, 1956

(48?)

/V/*

and complete competition among WPA) of a pecan shelling plant
employers tor labor; t. ac in San Antonio that hired Meximitted that it was impossible for workers
know
their , marginal can labor at-^unbelievably low
a
large group of workers to rise productivities; that tnere is fre6 Wages in the mid-1930's and beabove the low-wage (subsistence)
ana complete competition among came the largest plant by far in
level.
"The fundamental cause," the wage-earners for work; that the United States, forcing many
he wrote
"is in the numbers of capital
is mobile; that labor is of its mechanized competitors out
Journal

Says Unions Raise Wages

'

Neil CarotHers
article that unions have effect of lowering

Reader takes issue with thesis advanced by Dr.
in recent "Chronicle"

of

Chronicle:
business

a

J Congressional Investigation

economic

use

Required

*
-

theories

oniy insofar

to

refute

not con¬

as

to reality,
the

tradictory

Carothers

V*-

;

article

unions

of

Com¬

sentatives

mercial

and

(U. S. House of Repre52nd
Congress,
2nd

tee report

The

in

19,

Session, Report No. 2309):

Financial

"As

Chronicle:

return

work

the

to

practices

o n

of

the

by

WJ

task

the

but

as

the

oai'd

beine

for

being

phvsical

the

endurance

hours

or

ine

Pe0Ple>

economists
ecunuxaists

classical
classical

the

of

lions,

work,

of conditions prevail-

expressive

hi<?

in

the

"F<t<tau

the

on

lljrive aiong
or

one

dispose

the

few

has

price.

and

natural

its

of

according

S
properly

to

At

that

Taussig,

are

frank

was

Determining

often

fac-

diverse

ele-

such

conditions

ing

position

"u

compared

as

mu^lty> ,attdude ,of ,the ®^pl,°yer;

custom in the industry, the threat
" y.0

"any"man possessed^of

inVnim. I

t

iri^nctrv

nf

of

Cnncnnnonflir

tie

industry.
Consequently,
its
wages seldom rise in any country
much

what

above

is

absolutely

to subsistence; and the

necessary

-c

,i.

i_.

_i

p

Advocates

Marginal Productivity Theory

_r

upin„

among

charge of by the charitable
thorities when-

they

are

is

Carothers

popularly

economic

wages.

known

theorists

the

as

Stated simply, the theory
that

states

each

worker

,

..

..

,

productivity
to ignore

productivity
,

.

.

of

rates

in

and
various

pay

the

among

;,-,rinCtrxr

t.

or,H

^

the low correlation between the

two factors

J

as

upon

are

revealed in

a num-

Tne views expressed
those of tne auxnor and ao

the staff of the Commission.

Dunn Partner In

Southwestern Sees.

seem

Fu? ?1...

receives

0+^nd' ^ J ?La£
the amount which his services
State of Ohio (Ninth Annual Re± add to production x
(or at least in
nrtrtrf
rfmont
nf
Wnflrchnnd
..

„_

Dr.

the

of

wages

(as^aoes Dr. Carothers) the sharp

au-;

driven- tor

:

.

what

Actually

espouses

taL.^n

of

differences

Thtlr"le^'s'tarvaUon ^
„

theory

Carothers Really Espousing

can

Hv-

♦The Securities and Exchange Com*

r

age of the employee, etc. Very
subcommittee f°u"d that a large often, the particular amount of

from it^^beeL nossiX & ££

.

Commission,
Washington, D. C.

particular plant but
company as a whole,

leP°y 1S"" the employer lives in the com- herein
1949, • Low-fame;
munity or not, sex and color and

fnY?31/

laws.

thev

of so much La-

^

the

of

In

afl

.

THEODORE S. KLJSTON*
Securities and Exchange

fnidation, profitability not

j

S'L

.

but

bour°"

another, to subsist and to per— accept rather than to choose their u^0
iP
such families were, the wage may depend on no more
petuate their race, without in- work that it is taken without ref- headed by unorganized workers than the disposition of the emcrease or diminution."
erence
to
the
possibility of
a
f10
covered by minimuni wage pioyer at the time of hiring.

simblV

.

to .oour.

working conditions in the com-

:u

?"ed in
*hes and Economic StabiUty, the

enable

France, Jean Baptiste Say
was prompted to" write that "Simpie. or rough labor may be executed' by
life
or
health; wherefore, bare
existence is all that is requisite

should allow the Lajust wherewitnal to
live; for if you allow double that

Wages
bourer

investment, • 'SSSSSaiSSJpcomes of less than $2,000 for salability of the company, whether by any of its stafr<

The natural price of labor parity. Indeed as to this class of
price which is necessary labor, it consists in so large part
the laborers, one with of those who are compelled to

is
to

least Dr.

in statine his

ca-"tnejei.

their

usually circumstantial

haphazard.

or

nun}befs on very low terms. ments as prevailing wages in the as woxxvs
nan so much as he
? we figure to be below community, the trend and condi- could have done, and otherwise
"V**™ Pr0Ve "0t l°
* local employment, relative wou.d; which is a loss to tne Pub-

family, and the rest by'its other
members

actually is

•

<

of even the tenement house sweat nf Afh1 tJJ?,}dammit w ^^the
shops, or by subcontract from of the- Joint Committee on_ tne .
them, and is almost invariably Econ<01?lL <?®pfn* liS that ovpr
piece
work,
involving several ®
i
^\
Tul
processes, part of which may be bhe-fourth <9.6T ,iiijllion) of The
attended to by the head of the
s
-

market

its

the

•

-

)I[aguS

so-called. The work has been
secured by ruinous underbidding

Political
Economy and Taxation," in an
often-quoted
statement-in Mhe
opening paragraph of the chapter
on wages, that
"Labor, like alb
other things which are purchased;
and sold, and' which may be ,ih»;
creased or diminished in quantity,
"Principles

•

tors

to

be

could

conditions;

wretched

-

As to wages

no

wages

his

pioyment;

given training,
will go down

a

"T+he hufian/rame^an end"re

taeir mogt

neeessarv

of the bodv

which

sation

tended to remain at
subsistence levels. Ricardo stated,
in

wun

even

PrSeo,Pop2tionToZ^
that

having

,

death may detheir occupation only

and

from

tracj-

ing in pre-union Europe.
MQifhuc

mobile; that ail labor finds em- of business.

.

under this system rarely

of labor

He argues that 'being less than 12, generally 13
doing so would enable wages to or if and frequently from 15 to
rise to even higher levels than i8 hours in 24.
'
would
be possible
with unions.
"rnntafdoiis diseases
which are
^Contagious diseases, wmcn_are
He chooses to ignore the wage
Speciaiiy prevalent among those
subsistence theories, or observa- ^£^'thrive~'^irnig"with their
classical theorists.

linn*

of

#

oracticallv to drive

is not willing to work to the limit

Kliston

S.

1 heodore

days, as advo¬
cated

merelv

adiusted

en-

emniovee

the

task

rra"-

the

oxcent

from the shoo each employee who

of

i

so

not

the

bv

laissez-faire
p r e-u n

of

is

tnere

limit'

nn

duranre

a

urges

ers

hours

to

tirallv

Caroth¬

Dr.

required to

investigate in 1892. The following
are two excerpts from a Commit-

1956

July

strong, became so

became

bad that Congress felt

in

bis

the

United States in the 1890's, before

Neil

Dr.

in

conditions

Working

I must rise

contentions
of

of rearing."

expenses

.

.

.

,

financial

and

trained to

economist

'workers

level at their

nearly the old

to

mere

employment

seeking

Double the numbers of a group

marginal productivity theory cited.

Editor, Commercial and Financial

"Quarterly

the

Economicshe" ad- tne

of

that
all
capital is
Professor
George
Stigler
of
employed; that tne bargaining Columbia University, who in some
and their
wages
powers of labor are equal to em- early writings was a proponent
even
though their training has ployers; and that working condi- of
the marginal productivity
been excellent. The net useful- tions and the terms of tne wage theory of wages, conceded that
ness or effectiveness of any one agreement are left to the mutual employer control of wages was a
such worker becomes less.
And decisions
of workers and em- flaw in the theory when he wrote
even
you maintain the numbers ployers.
("The Economics of Minimum
a given group at the same figPeculiarly, Dr. Carothers indi- Wage Legislation'):
ure, and improve the training and cates the weakness in his argu"If an employer has a sigpersonal efficiency of all, thtir ments almost at the beginning of nificant degree of control over
wages will not necessarily rise." his article when he states: "Eco- the wage rate he pays for a given
It is of interest to note that Dr. nomics is a science. But, admit- quality of labor, a skillfully-set
F. W. Taussig, a leading figure tedly, it is an inexact science. The minimum wage (presumably by
in the academic world while at reason for this is the complexity union or government) may inHarvard, and one of the founders of the industrial system."
crease his employment and wage
and Presidents of the American
rate and, because the wage is
Economic Association, was widely
Productivity Theory Generally
brought closer to the value of the
QU°ted by Manufacturers' and
Uoubted
marginal product, at the same
other associations of employers,
It is of particular interest to time increase aggregate output."
in the tenor of the Pariod- ln tne note that neither employer groups
in closing, it mignt be stated
same article referred to above, he nor labor groups admit the fea- that if Dr. Carothers is to be conwrote:
sibility of the productivity theory, sistent in advocating a return to
"Persons habituated to higher The National Association of Man- policies of bygone aays he might
standards find it difficult to real- ufacturers in a thorough analysis repeat the words of Sir < William
ize how bare are the absolute of the theory titled "Productivity, Petty, one of the leading English
needs of those at the bottom; and Gauge of Economic Performance, economists of the lr<tn Century,
the reckoning of fhe minimum concluded: "A policy of basing Wl,0 wrvte in his "Natural and
de.?ent subsistence, when made wages on the productivity of par- Political Observations" mentioned
by the more, Prosperous, may ticular plants and industries would in a following index, and made
easily bring the total. above the be an economic monstrosity."
upon
the "bills of Mortality," I
poor ln fact
The wage-setting process for first published in loo2:
the minimum.
many of the non-union workers
"A
law
that
appoints
such :

level.

wage

Practical invalidities in

As

those

Charges him with ignoring observations
the classical economists on European pre-union conditions.

general

of

issue

1916

LETTER TO THE EDITOR:

Timothy

Tex.

DALLAS,

Building,

commerce
—

general

and

^

A ne

"Were
kind

?
bread

it

possible

food less
u
iT
<
but having

of

a

\

tenance,

p.ople

reduced
two

to

discover

to

agreeahle

eating

*/r

o

11

ent-day

later
U

students

theory

as

r

in

.

period

penoa,

many pres-

of

economic
J.

the

be

once

V

Marshall, regarded by

+fcLvn?,

sus-

then

only

somewhat

a

the

over

mora

his

humane

errmlov

Tt

ihtellii.

greatest

^4

modern

theorist of all, wrote in his "Prin-

ciples of Economics" that "if the
0t

gent workmen, provide them witn1
healthy, roomy and Well venti-

?

npi

Ignored

IS

ar

n

been associated with the

nas oeen associate

^

rate

his

and

biahlv

Hnnhtfnl

productivity

has

nrartiral

native

that

thp

theory

of

annliration

.

,

eo

8°

unmolpstpd

unmoiestea,

will

will

hp

cepted before the theory

thp

be

the

effec+ive

of driving manufacturers
wbo now oppose such mode df

m«ans

j0hn

Bates

can

Clark

-

be

one

oftheDione^rsofthistLOTv
t

k great nains to ooint out that

?ehtarable
^ themy was "T

„M*tw

.

,

,

-nri

as

econ-

Si
t

a

£

m.nv

ri
and

y ^
any

increase

establishments

were

Mili-

jje received a degree

?„

imorovements

in

plants making
second

eroun

outnut

Der

declined

nearlv

20%

of output
mum
crease

ranged

from

increase of 47%
of 54%.

a

Comm

Odessa,

and Lufkin.

Thomas Gall

Rejoins
Lilley & Go. Staff

PHILADELPHIA, Pa.—Lilley oc
rn±L,t\u&xJrnjiS\f irii.—xxmey &

An-

manufacturing plants (Productivity Trends in Selected Industries).
Between 1939 and 1946, variations
lin changes in man-hours per unit

.

Fort Worth, Midland,

t

man-

wasmad/of 2Heatoer

v

They are located in Dallas, Hous-

while for the

11%

almost

Securities

operates six offices in Texas,

improvements m-

creased

hour

Southwestern

nro-

improvements in pro

+

the^Phdadelph'a-Baltimore
Stf
Thomas D' Call has become assons«sn

ciated with their firm. Mr. Call,'

maxi- who in the past was with Lilley &

to a de- Co., has recently been with Battles

Theoretically, tne

«,

pOTrinnnv

Tnr

less efficient plants would be
y'
forced out of business, buIt in
F
Carll Tucker
practice the payment of lower
g classes ,can afford strongly advocated laissez-faire book "The Theory uj Wages," wage l ct ICb can enable the lessof
rates tail c liauic uic icooCarll Tucker passed away July
I
w «/
o
uuun
j. ilk,
jl i j/cu/
VV uytzb,
wage
*
?
n0 eYen witb regard to wage-setting ex- added the following assumptions: efficient employer to compete in- 29 at the age of 74 following a
{?froofra
^fc.essanes» cept that he admitted that such a that employers are able to meas- definitely. There is the classic ions illness. Prior to his retireincrease in their earn-

*f ^1^SS3+?y bei?S omis^' add Probably the leading maintained and there was no
JU
?iubrougb; American economist of the first change in demand. Professor (now
,pai
world'quarter of the 20th Century, Senator) Paul H. Douglas in his
,

,

w

7

to Us other study

l*!L0n 7 Ju£flclent: Uhtoir neiahbor and
^rnm P"ra f°™ only in a static state
!
machines and necesgjt
emolov " cheao
lahor
where the population was neither
J^ JL £U\d eam gGnfr; also?
7
P
increasing no? decreasing, capital
corr?sP°nded
; was constant, there was no change
.reanng
Taussig s Views
the. industrial arts (inventions
saries1
wen
Dr. F. W. Tau^ig, certainly one of industrial
and machinery), existing forms
things of the most noted American

Jr® iv

introduced

,

hnman^inif

faiHxr

of two

one group

ap_

10

Kansas

comParat)ie 1gr0.upsrT,°i mdustnai administration.

This unfair
advantaffP
nnrt
admit there are numerous as- relatively short period
of six
]9^s-. -this unfair advantage and sumDtions that must first h_
vears
outmit
ner
man-hour
for
Ibis inhuman system if permitted shh^P^ohS inat must first be ac
years, output per man nour tor

to

of

Culver

\x [and the University of 'J

and Living Standards)

S

-

serv-

toeyTaTnot 'compete3'wi

l^ ,1,

ovv"*J'

,

«

policy would tend to drive down

in

ure

r4fUlt numbers
in Si great an would therefore be a bottom "floor
a11 T?ges and tbat
their
to

the

as

bring down tneir earnings quickly




necessary.

an

article written

for

the

In

May,

and

to

estimate

in

advance

added^producUvity" that
the

will

employing
of
given workers; that there is free
accompany

y

TSJo.rxr

mgniy aouhUul that the equipment plants. The

marginai
wa£?Po

higher

a

will be increased.

effective

thJ Unif'pH securlties business for more than
£(
\ fhnr
seven years'. and formerly spe:nt
Sree yearS in
Unlted States
tne COntrOl Of Snwi
manage-

and work flow and replacement
.Even the advocates ot the mar- of inefficient^machinery. The
gmal productivity theory of wages other group cid not. Within the

lated factories to shelter them
while at work, and pay them a

fair compensation for their

at

wages

agreeaDle man tne more numane employ intern

double its
would

days."

In

a

than

labor

fellow manufacturers is at once perceptible, for

tern'

'

kpinriinS

a

manufacturer employing this sys1-

.:

partner

as

manager,

attended

difficulty lies not in acquiring ex¬
istence, but in supporting
it."
Necker
was
moved
to
write,

H.

Dunn
has
joined
Southwestern
securities
Company,
Mercantile

~ example

(discussed

in

various

publications" of The "unRed' Stales ment Mr. Tucker conducted his
^

Labor Department and tie sub- own investment business
ject of a special study by ta^ York...., '...... -/ •; •:

in New

Volume

184

Number 5556

.

..

The Commercial and Financial Chronicle

(483)

Yeast of Suez
;

^

Rubber, manganese, tin and lead
bulk large in the traffic and ves-

;

sels of 48 nations

By IRA U. COBLEIGH
;

V

Enterprise, Economist

-

what

.-•Now

Will

things, possibly.
dough, he

'

more

the

Presenting some quite topical notes on the economic ferment
resulting from Egyptian seizure of the Suez Canal, to get a
*

Kipling

-

the:

set

dam-site

>

more

background

shocking-Egyptian
piracy of last week.

the

best

like

is

Where
<

Commandments
And:

-

a

man

raise

Pyraas

co-

is

Let's

translate.,: Nasser

Asia

at' his

-

.

their
v*.

conceits

their cruelties

•

crudities

and

:

An other

Peron,
he, a
VP 1 n t-sized
Hitler,
man's

a

poor

1955, it carried 118

Ten

no

Command

Nasser'has^

Surely

man

thirst."

about

the Eighth."A

•

a

forgot-

all

ten

In

Nasser's:

which'is

swiftlv

economic

erudite

more

a,

i

annraise

riu.

the

-of''the

the

military implications of this Hold-

Up at the Toll House.)

Why did
this arrogant colonel do it? Ele¬
mentary, my di ar fellah!
(A fel¬
lah is an Egyptian farmer.)
He
wanted

dam.
money;

to

build

a

billion

East-rn

northwardeachdav

of

New

York

it

3,600

the

in

Canal, and
round

miles

about $7,500

pays

trio 'oils

for

this

econ-

So

Suez is

you see,

erty.

-balls.

^
big

a

lease

it

due

has

a

5968,

been

shares

to

expire

in

for

are,

roughly,

advanced,

over

up

the

water

fully

loaded)

but

-Among

commodities,

H.

Turrell

are

MIAMI,
has

Fla. —Louis

become

lumbia

F.

Inc.

with Security Associates, Inc.

places

as

•'
i

..

—

Joins Davidscn-Vink
(Special to The Financial Chronicle)

ST.

PETERSBURG, Fla.—

Richard M. Milton F. Fischer has become a£-

India and Malaya,

„

course,

Holmes has been added to the filiated

,

.

...

„

staff of King Merritt & Co., Inc., Sadler,

...

with
-Inc.,

Davidso -V k«
Florida

Bank Building.

Chamber of Commerce Building.

,

an

offer to sell

nor a

solicitation of

an

offer to

buy

any

of these securities,

The offering is made only by the Prospectus.

;

-

check-signing
:
-

time came 'round
The ,U, S. And Britain" could, have

This announcement is neither

raised

the

themselves

that

dough,
on

Egypt

but

NEW ISSUE

excused

the logical grounds

was

(1)

indigent and

(2) belligerent. So like

any

250,000 Shares

other

unprincipled
stakes

gambler, whose
gotten too big for
turned to stealing.
No

have

him, he
petty larceny this, but; ra# big
cabal, grossing a $100 million a
year.
Now when this strategic
ditch was built, there was a big
policeman ' around
to
prevent

El Paso Natural Gas

Company

5.50% Cumulative Preferred Stock, Series 1956

thievery of this sort—the British
Navy-r-which, from
the end of

.

'

(Par Value $100

-

.

per

Share)

the

'

-

Napoleonic Wars to the be¬
ginning of World War I, patrolled
(and controlled) the Seven Seas.
The Cop has been taken off the
Empire beat, however, and the
United Nations has not effectively
replaced him-.
So national bur¬

Price $100 per
Plus

glars; including Nasser, are on the
prowl.
Well

Copies of the Prospectus
is

what,

specifically, ■? has
Nasser stolen,
and from whom?
He has appropriated the property
of Compagnie Universelle du Ca¬
nal Maritime de Suez (Suez Canal
Co., to you).
This is a private
'enterprise, with a home office in
Paris, 800,000 shares of common
stock listed on the Paris Bourse,
of. which 350,000 are owned by

circulated from

legally

accrued dividends from

may

be obtained in

any

only such of the underwriters,

offer these securities

in

compliance with

Share
June 1,

1956

State in which this announcement
including the undersigned,

the securities laws of

as

may

such State.

White, Weld & Co.
Stone & Webster Securities

Corporation The First Boston Corporation Lehman Brothers Blyth & Co., Inc.

the British Government. It earned

A. G. Becker 8L Co.

Eastman, Dillon & Co.

$47 million net in 1954; has about

Incorporated

million

$85

assets)
in

cash

Nasser

(of

its

$235

million

in Egypt and the balance
and

securities

has

tried

soften

to

his

outright piracy here, by an offer
to
compensate shareholders ac¬
cording to "closing prices on the
Stock * Exchange."
On July 26,
this closing
figure was $262.85.
(It slipped to $203, next day.)
But

Harriman

what will Nasser




use

for the

Ripley & Co.

Glore, Forgan 8C Co.

Kidder, Peabody 8C Co.

Goldman, Sachs 8C Co.
Lazard Freres 8C Co.

Incorporated

elsewhere.

Merrill

Paine, Webber, Jackson & Curtis

Lynch, Pierce, Fenner & Beane

Smith, Barney 8C Co.
August 1,1956

Union Securities

Corporation

D,

with

Lane South. Both were formerly

manganese.

.

John

Bieder and Company, 1330 Dixie

Perez

(Special to The Financial Chronicle)

a.

and

associated

Company,

Securities

MIA M I, F1

now

Co-

#

Suez is the life line of particularly in tin, rubber and

Maurer

with

connected

King Merritt Adds

higher

In
petroleum,
of
higher delivery costs from
the near East are possible, in
which case the shares of British

PETERSBURG, Fla.—

Vernon

Suez is to remain a trouble spot.

Roger

England, both for receipt of oils
and
minerals;
and delivery of
manufactured goods to such far
away

New
the New
t has been

(Special to The Financial Chronicle)

super-

Suez really rocks the world prices may be expected to result,

economy,
„
,

been

,

ST.

tanker market is the new

Canal much

Jolly

has

Harling

appointed a member of the municipal bond department of Good-

With Columbia Sees.

netted $47 million and paid $16 may be the long-term answer if of Florida, 3839 Biscayne Blvd.
Running

hoJS?g the ^mbership
offjcers will be John W. Turner,
5^?
iFt?61?11'

near-wrecking of Iranian) econ- bo*r

Another important item in the

common

miui,m in dividends.,-.

members of the New York Stock

im-

omy more recently, Nasser has York City members of

min8-

the

what

the

oil

now embarked on a Program of York Stock Exchange
arrant piracy which, should it be
L Ir.the^municipafbomrt
c0P ®d.
other Arab nations, b"nne«,- for the last 28 years, Mr.
could indeed bring on a crisiarn Harlinghas.beenL with Gertlei,
an already troubled world. While Devlet Co., Carr,_Henry & Doyle,
If accelerated shipbuilding economic sanctions such as fund Manufacturers lrust Co., Harvey

Suezwar). Last dividends during much water Suez (it draws but
suspended
go through
too
the
the
Canal
fullv
loaded)
vear.
Last year,

volume of

™lu™ f.0*1 im" ExchangewtthwH^b'edSS
holding the membership. '

and

jf t0 °ur st^ ^uyejrs (although tanker. This is too big. a craft to
the war).

of the

auc+uon °I

I

fabulous

a

a

is indicated, then a couple of good freezing may slow Nasser down, P^&S^and TrRcMc S'
companies to watch will be Beth- the only real solution for eco- was a partner of J. A. Ritchie Co.
lehem Steel and Newport News; nomic progress and. peace in that
Two With Bieder & Co.
and> °f course, the German and Part of the w°rM> is the age old
V (Special to The Financial Chronicle)
Japanese shipyards will be hum- cure for all dictators—removal.

prop-

Built in 1869, and operating

under

DALLAS, Tex.—Eppler, Guerin

& Turner, Inc., will be formed as

af-

new corporation effective Aug.
9. The firm, located in the Fidel¬
Then, too, there has been considerable public clamor for re- ity Union Life Building, will be

duction

Good Hope,' instead ) of going
through Suez, it will carry 40%
less oil in a year. So as defense
against Egyptian uncertainty,
many more tankers may be built;
and some tankers from our surPlus flo«t may come out of motn-

the

saves

are

Goodbody

balance (300,000) barrels for the
U. S, A T2 tanker from Kuwait
to

be

«,

Kuwait)
adversely

shipyards Suez. Having learned no lesson
should get a powerful lift. If a from Mexican oil expropriations
tanker has to go round Cape of in the 1930's, or from Mossadegh's

glide

'%

KS&dtS

likely to

in

fected.

have

bar-

oil

interest

dollar

have
the
availability
out of ink when

Egypt
didn't
Russia faked

of funds, but ran

in

above

year,

1 200 000

American Tel. and Tel.

commentators,
a
political and

of

Middle

peasant,

Suez Canal grab. (We'll prudently
leave 'the
better
informed
and

delineation

of

French

>

to

rels

last

tankers

the

case

consequences

were

Its

to today's task

warm

passing through
half

Canal,

The big tonnage
than 14,500 ships

more

earner.

With this poetic reference as an

let's

Of

raise

can

thirst is for power.

opener,

t:

Wetl, ZyTtim^m^ey

merits.

Cobieigb

is oil.

Panama

year.'

(about 17 sailing days at roughly
"There $2,500 a day) by coursing through

aren't

U.

the

same

most

Be NYSE Member

this) and,Gulf .(which has

50%

■

Musso.

lini. '

Ira

for

the

a.

Q

in

(mostly iron ore), and 50 million
tons

Eppler, Guerin to

own

an^Ar^h ® be more easny . arranged if Arabi- presf«ten5^WUl?am B ^EppTw
shlfting sands of Egypt and Araby. an oil deliveries become costlier iCVjf
jv
Whatwill ?n„t!?!s !"ean to in- or wore difficult. (It would also
Norman J. Sitzenstatvestors? First, fluttering markets, favor imports from Venezuela.) t
Assistant Vice-President- Earl
generally, since the Dove of Peace Contrawise, if imports are cur- A Tyson and Alvin L Feurbacher.
has some buch-shei om its wihgs. tailed, 'hen the:Out:look for strict- Assistant Treasurers.
Next, expect strength in the belli- ly American producers such, as
cos® shares.
Aircrafts such: as Standard of Indiana could be benUnited, Boeing, Lockheed, North efited.
,
- 1
'
:
•
Harling Appointed
'American and General Dynamics
There can be no doubt that
should gain substantially new fol- ferment j,n the Middle East is
By
& Go.
Rowings. Shipping charter rates being leavened by the Yeast of
Edward': J.

im-

most

waterway

million tons (2,000 lbs.), as against
the-Sault Ste. Marie Canal (only

best, is like the worst of the
strutting tyrants who have been
cluttering up the pages of recent
history with

•••

30% of

of California each

,nse the artervta. .hi™

commercially

the

man-made
In

solits

does

Standard

close the artery to ships of certain pleaded in Washington for liminat!ons altogether. In any event, tation of oil imports to 16.6% of
botil economic and political dis- domestic production. This may

1% miles long), 114y2 million tons

a

.■"'3

and

it

If Nasser wants
try to raise

Petroleum, Burmah Oil, Shell Oil
and
Transport,
Royal
Dutch,
(Texas and

Arabian American Oil

end of Operation "Golden Goose."

,•

long

strategically

the world.

a

■' "

thirst."

%.

Africa;

and

-;

can

miles

portant

Ten

no

103

and

:

.

aren't

It's

Two

that, the
boycotted; and instead of
getting more revenue,
Egypt will find itself on the short

How big and imnortant is Suez9

the

worst,

'
there

;

«

happen,?

may

he

If

*

Canal.

Canal may be

maker9

"Ship me somewhere East of
Suez, ' Where

money.

purchase money-sell the
mids?. Have the Sphinx

tolls.

the

use

f

Dean Witter 8C Co.

National

0

Commercial and Financial Chronicle... Thursday,

The

(484)

Fanner Manufacturing Company

— Analysis — Holton, Hull &
Co., 210 West Seventh Street, Los Angeles 14, Calif.

Florida Turnpike Authority

— Analysis
Broadway, New York 5, N. Y.
J

Dealer-Broker Investment

Flo Mix

to

report on

Fraser Companies Ltd.—Analysis in current

mrj

Review"—Burns

ment

19) with continents on competitive atomic
power, boron, lithium, nuclear weapons program, etc.—Atomic
Development Mutual Fund, Inc., Dept. C, 1033 Thirtieth
Street, N. W., Washington 7, D. C.

&

Bros.

issue of "Invest¬

Company Limited,

King

44

.

ment

/

ment, General Mills, Inc., Minneapolis 1, Minn.
Houston Oil

Wall

Street, New York 5, N. Y.

LaClede Gas
,

day at the Omaha Country Club.
A cocktail party at the Omaha

& Co., 52

/

Club will

Sept. 1-2, 1956 (Minneapolis,

Beaver Street, *
.

;

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

„

'

New York

Stone & Co.,

-

.

I Coal

York

/

v

Southland

.

Shareowners—Study

Standard

Packaging

York 5, N. Y.
Bulletin

—-

& Co., Inc.,

year.

Japanese Stocks — Current information — Yamaichi Securities
Co., Ltd., ill Broadway, New York 7, N. Y. 1
,

Western Casualty and

Hotel

the

at

>

(Chicago, 111.)

Corp.,

\\

Municipal Bond Club of Chicagd
20th- annual field day
at the
Medinah
Country Club • (pre-;

*

ceded

/
•

by

dinner Sept. 13 at
Club of Chicago).

a

the University

Sept. 27, 1956 (Rockford, HI.)
j
Rockford Securities Dealers As¬
sociation seventh annual "Fling-

bulletin

a

,

meeting

Sept. 14, 1956
-

-f

Also available is

sr

' Bank

Convention' and

34th
,

of

Association

Radisson.

.

United States Ceramic Tile

Life Insurance Company Stocks—Bulletin with particular refer¬

Investing

'

t

Women

^annual

J. R. Williston & Co., 115

—

Broadway, New York 6, N. Y.
on Wagner Electric.

,;

'

.

Corp.—Report—General

Racing

80 Wall Street, New

in current issue of "The Ex¬
change" magazine—published monthly by The Exchange, 11
Wall Street, New York 5, N. Y.—10 cents per copy, $1.00
per

;

" -:

-V ■'

Minn.).
National

' /

:

Companies—Laird, Bissell & Meeds, 120 Broadway, New
5, N. Y.
'
*

8,630,000

Inc.—AnalysisL-Uniisfed. Trading Depart? -

McGregor-Doniger,

/

/

Page Hersey Tubes Limited --^ Review ^ James Richard«on &.
Sons, 173 Portage Avenue, East, Winnipeg, Canada, and Royal
" Bank Building, Toronto, Canada. * "v
-v\

.

Coal, Old Ben Coal Corp. and United Electric

lIsland Creek

v/

Ohio Turppike and Bridge Bonds—Bulletin—Tripp
:
40 Wall Street, New York 5, N. Y.
'

Bituminous Coal Industry—Review—with special reference to

r

4, N. Y.

ment, Ira Haupt & Co., Ill Broadway, New York 6, N. Y.

leading
banks and trust companies of the United States—New York
Hanseatic Corporation, 120 Broadway, New York 5, N. Y.

Banks and Trust Companies—Quarterly comparison of

precede the event on

Company—Study—Newhard, Cook & Co., Fourth
1, Mo.
.
'
V

and Olive, St. Louis

Marathon Corp.—Analysis-^-H. Hentz & Co., 60

>

way.

Bank Stocks—Review at Mid-Year 1956—Hayden,

,1.

(Omaha, Neb.)
Nebraska Investors Bankers.As¬
sociation annual frolic and field

Broadway, New York 6, N. Y.

Joy Manufacturing Company—Bulletin—Georgeson
•

(Summer 1956)—Issues appearing attrac¬
tive at mid-year—Bache & Co., 36 Wall Street, New York 5,;
N. Y. Aiso available is a bulletin on Northern Pacific Rail*
List

Coun¬

Aug. 23, 1956

,

Company—Bulletin—Aetna Secu¬

Field Materials

rities Corporation, 111

Columbine

the

at

try Club.

Mills, Inc.—Annual report—Public Relations Depart-

General

Avomaeion—Study—Model, Roland & Stone, 120 Broadway,
New York 5, N. Y. Also in the same quarterly review is a
study of the Air Transport Industry.

/

(Denver, Colo.)
of
Denver-Rocky
Mountain
Group
Investment
Bankers
Association
annual
summer frolic and golf tourna¬

Aug. 2-3, 1956
Bond
Club

Street, West, Toronto 1, Ont., Canada.

Atomic Letter (No.

Bache Selected

Company—Analysis—Loewi & Co., Incorporated,
Street, Milwaukee 2, Wis. Also available is
Gerber Products Company, and Clark Oil & Re-

fining Corp.

<

~

Field

Investment

In

225 East Mason

It U understood

■j

Feibleman & Com¬

Richards Building, New Orleans 12, La.

Foote Mineral

a

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

coming
events

Fertilizers Corp.—Booklet—T. J.

pany,

Recommendations & Literature

-.

Reynolds & Co., 120/

—

,"7

August 2, 1956

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

'

y

Ding" at the Forest Hills Coun¬
try Club.
,

Life

to Aetna

ence

>

Life

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

Standard Life In-

Insurance, Beneficial

Connecticut General

surance,

Lincoln

Insurance,

Surety Company

—

/

A.

Searight,

Broadway,

115

New

Firms

Y.

N.

Oct.

;

Security Bank of Utah, N. A., Salt Lake City, Utah.

NSTA

New York City Bank Stocks—Comparison and analysis for sec*

Quarter—Laird, Bissell & Meeds, 120 Broadway, New
YorkcSj N. Y.
ond

^

I

u.

business and economic conditions in Japan and the Far East
—annual subscription $6.70; airmail $11.05—Oriental EconoCONVENTION OF NSTA, EL MIRADOR HOTEL,
.

PALM

.

SPRINGS, CALUF., OCTOBER 24th to 27th, 1956

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

v.•

♦Wellington Hunter
:^Pred B.- Gotti v / ^

used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National Quotation Bureau, Inc., 46 Front Street, New
,

P.

Street, Philadelphia9, Pa.
Pocket Guide for Today's

-

y/;;;

S.

French

♦Sidney- Jacobs♦Robert

Strauss

4rr

-V-

American Distilling
a

bulletin

American; Optical

Company^eport-^n^

Wall Street, New York
5, N, Y.
Barium Steel Corporation—Review—W.
42nd

Street, New York 36, N. Y.

Memorandum
Street, New York 4, N. Y.

Chemical

Broad

Process

•

—

;;

/

.

,

Memorandum,
Broad Street, New York 5, N. Y.
—

.

_

,

.

'

Lee

'

Muir

Hutton

&

Los

-

■

/ ♦John" W.

Tiirner

v

•

i

«

»Robert

25

?

Green*

•

>

*

Green

'

♦Leslie B.. Swan *
.*J. Robert Doyle

Guerin

Pledger
Chas.

'

.

Corp.

N. Y. J.:

;*

.

'

-

Dallas, -Texas

Co.

•

>

,y

;

f

Philadelphia, Pa. ■'
Angeles, Calif.
/

'

Los

Los

&

?

.

Colo.*"'

Denver,

v

Scranton

;
•*

Chicago, 111.

■

Angeles, Calif.

New

,

Co.

O'Connor

;

'•> •

San Antonio, Texas

v. •;

Co. ''

&

jab

^fte piiqiXVaAa 7Bq;st 4sn
>giopop ano 'pej diSbii aqj^

;

Angeles,. Calif.
./'Richmond, Va.
/

& Co.

W.

Doyle,

-f

,

,

ciation Annual Convention.

Mass.'•, ;

Boston,

Turner

&

Hemphill, Noyes
Pledger & Co.

York,

•

Los

Inc.

Mdson,

GlorC.'FOrgah & Co.
Trevor Carrie, Securities
Eppler,

,

y "Wallace H. Runyan
-

N. Y.

New

:

;"

'

,

/

Ydrkr,

,

.

(Hot Springs, Va.)

National Security Traders Asso-

ss9[paauBsi
■

Calif.
*r.1'

New

.

Co.....

Muir Investment

-f

i

Angeles; .Calif.

Seattle.. Wash.

>'7;
-

the

Nov. 3-6, 1957

!
•

Sani Francisco.

Henderson

Scott, Horner. &

-

"

Thorsen
Currle

♦Tnevor

♦Sam

Co.,

G

Lester J.

.

&

Conn.

Haven,

Chicago,

111.

-

•

z

'

•

♦William

—

Hemphill,

Johnson

A.

Noyes & Co., 15

^

*Harold

;

S.

•Eugene

Sfitro■ &

.

:

Willis

Vitamin Corp.

♦Walter
Miss

J.

♦John

Norde-

Street, New York 5, N. Y.

'

.

;

V.
;

!

}:

Barker

S.

Shane

Albert

♦Robert

Zimmerman

F.

♦Maxfield
•Walter L.

McCready,
Bates

E.

W.

S.

Stewart

Tindall

&

Co.

&

.

Brown

Filkins

Hornblower

&

.

V /

Bingham, Walter & Hurry, Inc.

Higginson Corp.
Miller
Miller

'

Co.

Revel

Co.

First

California

F"mvhill,
Troster,

Noyes
Singer

York,

Atlanta,

Weeks

Revel

Jr.

Angeles, Calif.
N. Y.

El Paso, Texas

„

Co.

F, Hutton '& Co.
Baumgartner, Downing & Co.

Lee

McOmber

W.

New

Ga.

;

rr,

7

"

;

Kansas

E.
,

B'vrns

Farr

♦William

A.

El^iC»BolldKnn«r^!,olie ComPany—Analysis—Bruns,
& Co., 52 Wall

L.

Alice

Brothers

J;

„

jo*->n Lathshaw

Company—Analysis—Harris, Upham & Co., 120
T°lk 5' N. Y. Also available is an analysis
?LKII?beJ^ly,'Clark CorP°ration and a memorandum On U. S.

Los

Harold

Stewart

F.

Co.

Lehman

.

♦George-M.-MeVey

Dayton Rubber

man

E.

Harbison

■

;

.

<

at

Angeles, Calif.- ~ |

U*>r Los
-

V

Hau.pt <fc Co,
Haupt & Co.

Ira

Lothrop

"•Edward"D.

/

Keyser Manly, 11 West
; •
"
&

Company—Study—Kalb, Voorhis

—

'

Herzfeld & Stern, 30 Broad
-

W.

Carlsen

D.

•Gar-nett

-

Street, New York 4, N. Y.

Craig Systems
.

—

M.

•Ted

'

Ira

J.

annual
Statler Hilton

V Association

.-•S'Hotel;:;/://v't

i

Angeles, Calif.
Angeles, Calif, y \
Los Angeles, Calif;
*

'

11

Celanese Corp.

-

•

Phillips

Pelser /
•Bertram M. Goldsm'itfi

♦Harry

•

,

Los

..,

McAndretg 6o.r J net
Pacific fforthwest Co.

Price

'

Los

'

Wagenseller & Durst, Inc.
Fairmari & Co.
Eichler. & Co.

r Batem,an,

.

♦Gilbert

Also available

Hercules Gallon Products, Inc.

on

Ebner,- Jr.

W>.
C.

■

O'Nell

v

Colo.

Denver,

'

■

meeting

„

.

& Co.
rum'H
Co.
Hammill & Co.

Shearson,

,

-

Calif.

Palo Alto.

j

-

Bankers

III.

Mich.
Denver, Colo.

'

Co.

'

N. Y.

Detroit,

Co'.

&

May. &

York, N. Y.
York,

Chicago,

-

•

-

'

,

ganization, 100 Broadway; New York 5, N. Y.
is

"♦Josef

Or¬

Earle

fu „nr<ton,

.

;
-

-

Bosworthi Sullivan

r/y-

■.

New

Co.*

&

■

•; ;

April 21-23, 1957 (Dallas, Tex.)
Texas
Group * of
Investment

-

New

Mic^'rian C^rp.

>V

R.

L.

Thomas

Conklin

J.

Rice

F.

•.

..

York, N. Y.

"

Co.

C.- Sudler

Amos

"

1

^..^ltnerell
♦Richard

♦Charles

'">"'■ *

'Company—Bulletin—DeWitt

Daniel

&

First of

/Roy Cr Warnes

;

Trent

norroh ./

;

-'"J*

A.

New

C.

-

Nov^2&-30, 1956 (Hollywood
•
/
Beach, Fla.) ://•
/M:
/ Investment Bankers Association
of America annual convention
at the Hollywood Beach Hotel.

...

Ore.

Npw York, N. Y.
New York, N. Y.

/

Allyn & Co.
-Signey Jacobs & Co.

-

♦Phillip J. Clark
♦J. Earle May
;?B^F. Kennedy

Price-Times-Earnings Ratios—Selected list of stocks at more
than 19 times estimated 1956
earnings and at less .'than nine
times 1956 estimated earnings—Francis I. du Pont &
Co., 1
Wall Streetr New York 5, N. Y. \
v
"4
-•r

A.

♦^Lrence A. Horn

Investor—Harris, Upham & Co., 120

Broadway, New York 5, N. Y.

:

/
investment -Dealers'- Digest

/ V)

Minn,

Portland,

Company

&

Paul,

/'-f Seattle, Wash.

Marshall

Greene

City. N. J.

Jersey
St.

Rice & Co.

Foster &: Marshall.
Foster

-Anne Trent-"

./V.

■" 1

-

,

.

A.^Marcusson

♦iJohn

:'//■'■

Wellingtoni Hunter Associates

J, Sanders '
•Dan V. .Bailey
♦Robert M. .Topol

/

5

-

Irving J.

♦S.

Philadelphia Banks'— Comparison of 12 largest Philadelphia
banks—Stroud & Company Incorporated, 123 South Broad
!

National Security Trader? AmociatioiKr Apjaual Convention 9%
the EI Mirador Hotel, / ■ h
•»:

ernors.

- :
Over-the-Counter Index-^Folder showing an up-to-date comparison between the listed industrial stocks used in the Dow-

FOR 23rd ANNUAL

REGISTRATIONS

ADDITIONAL

jni^t, Nihonbashi, Tokyoi Japan.

■

Spring*

(Palm

Nov:314,1956 (New York City) »
Association of Stock Exchange
Firms meeting of Board of Gov¬

Oriental'Economist—'Monthly magazine (in English) reviewing

/

1956

24-27,

Calif.)

Needs and Resources of intermountain area—News letter—First

York 4, N, Y.

meeting of Board of Gov¬

ernors.

6,

York

of

Association

Na¬

tional Life Insurance, Gulf Life Insurance and Travelers In¬

surance—George

(Detroit, Mich.)
Stock Exchange

Oct. 4-6, 1956

.

«•

City, Mo.
Baltimore, Md.
Detroit,

.

Mich.

'

Angeles, Calif.
New York, N. Y.

Los

Los

&

Angeles, Calif.
Francisco, Calif.

Los

Co.

Angeles, Calif.

Los
San

„.:

Co.

Angeles,

New

Co.

York,

N.

Calif.

/•

Y.

LET'S LOOK AT THE BRIGHTER SIDE

DEPENDABLE MARKETS

Primary Market-

lamborn & co., inc.
99

WALL

STREET

Many thousands of Americans

NEW YORK

Republic Natural Gas

5, N. Y.

are

every year.

people

Troster, Singer
HA

2-

2400

Members N.

74

Y.

Security Dealers Association

Trinity Place, New




& Co.

York

6, N.

Y.

—

Refined

—

are

More and

Exports—;/ m ports—Futures

the American Cancer
or

»

call

Society

write to "Cancer" in

of your

/

more

going to their

how to head off cancer,
Liquid

/

cancer

doctors in time.,.To learn

sugar
Raw

cured of

care

local Post Office.

NY 1.

376

SEMPSEY-TE6ELER & CO.

DIgby 4-2727

American Cancer

Society

f.
f®

Volume 184* Number 5556.

The Commercial and Financial Chronicle

;.

9

(485)

available

*

v-

':V 1','1
"• i

\%st

'*,{•;}?£■

«—-..T ' *''

■■■

riod

Stock

growth
ment

planning
for

is

in

ital

this

art

planning

—

for

lifetime

utili¬

zation, and
planning for
disposition on
death

have

—

frequ ently
been

separated

the

of

a

for
individual

entails the

building of an estate, its utiliza¬
during his lifetime, and the
efficient; orderly and advantage*
tion

disposition

ous

of

the

estate

cording to his wishes

ac¬

death.

on

The living estate plan is one which
assists the individual to carry out

these

three

to

the

family group in greater
'security, comfort and peace of
mindv However, we are concerned
:today with the tangible aspects—

-primarily having to do with taxes

f^which affect estates.
Tax

There
of

Interests

two major tax groups
and each with two

are

interest

subdivisions.

The

first

may be
r considered those- taxes concerned
with

growth of.the

;vided

income

into

itself.

,

taken," it is possible to charge
income; a- maximum of
$1,000 per.year for six years. For
example, let tis* consider a man
in the $8-10,000 tax bracket with
a
$10,000 loss * and who became
considerably more conservative
because of his loss investing an¬
other $10,000 in a 3% fixed in¬
against

bond.

come

It would require him

— di41.6 years to replace the lost
capi¬
capital tal. In the meantime, the factor of

inflation must be 'considered.

12 year period—from 1939 to
1951—the dollar depreciated 47%
or better than 3%
per year. Our

gift

.

taxes

these
state

•

and

estate

In

taxes.

fields, both the Federal and
governments have been

tive to

a

greater

or

ac-

lesser degree.

2 To the extent that these taxes affeet investment and that estate

funds.

The

of

mutual

funds

and

the

funds

small

Dividend

income

husband

between

wife. All U. S. residents

the
at

lowest

be

50

an

level,

Additionally,
irrevocable

20%

In

one

investor, attempting to-recover his
loss

through

a

3%

bond, would

find himself rapidly losing ground
in a period of inflation and might

two

The

flexibility

and may

trust

must
no

be

and

This

payment of capital gains
but may
unnecessarily freeze
assets into an estate and lead to
tax

a

and

specified

zero

transferred

no

imposed on principal and limit
ability of an individual to dis¬
tribute his estate. Their effect is
less universal because of exclu¬
sions from the tax but nonetheless
the

period of 10

they

form
a
serious
block
to
transmission of estates and in the

investment problems arising from
them.
Perhaps the most obvious
case in point is the one
of an ex.

as

with

income

in

is

stock.
of

While spectacular amounts

money

involved

were

,Ford Foundation, there

tax¬

75%

The

in the

control

a tax-free
foundation to hold the bulk of the

a

pres¬

$50,000

such

family through direct bequest of

deduction

the

—

case.

in the Ford

seen

stock led, as in
many other cases,
to the establishment of

tax

examples

of

this

in

are

use

is

dency

to

effectuate

through

expanding. This ten¬

of

use

tions

has

ment

sums

tax

caused

to

control

free

founda¬

further

be

placed

Continued

on

invest¬

in

page

-

be said to be living on capital. '
planning may alleviate their im¬
2 Combining the effects of infla¬
a brief discussion of each tion
with the tax advantage of

pact,

•j-

Newport News Shipbuilding and Dry Dock Company

follows.
Primary
emphasis
is
capital gain and the tax disad¬
given to Federal laws; but it will
vantage of capital loss has pro¬
be found that the problems and
duced an inyestment climate mak¬
solutions afforded will generally
ing current income less important
apply to state taxes as well.
than capital gain and capital
gain
/ 'v'.*>*."/-v"- '
/w--*' :
less important than avoiding cap¬
Income Tax
.-j

-

,

Federal

tax

on

2

:

;

i

income

is

possibly the most widespread, im¬
portant
and
obnoxious
impost.
Revenues from this

the

tute

Federal

major

source

for

income

Government

consti¬

and,

the

at

the

individual level, increase at a rate
that has caused major sociological
as

well

as

investment changes

the last decades.

effects

jor

of

One of the

the

tax

has

in

ma¬

been

to make the accumulation of cap¬

ital for investment

more

difficult.

ital loss. This

one

paradoxically, the in¬
creasing prosperity of the country
with

the

leveling

of income tax has
and

larger class

created

effect
a

new

of investor—the

small investor saving from income
*A

fore

talk

presented

by Mr. Vicinus

the University of

Course

in

tion," July

be¬

Vermont Extension
"Economics of Capital Forma¬

16,

1956.




Three Fiscal Months Ended

conclusion, however,

is

a

general

and

subject

to

look

primarily

the

on

are

an

To

return

$20,958,382

$25,763,214

$39,212,665

.

.

4,418,292

2,871,715

7,621,087

5,303,291

820,190

1,710,522

1,992,785

4,946,646

Other work and operations
Totals

to

•

3,673,155

the

fect of income tax, there has been

The

a
gradual change in investment
facilities and securities to accom¬
modate this trend.
Saving and

5,202,644

8,105,930

$35,003,640

$54,029,181

$65,523,196

At June 25,1956

major contracts
period

At June 27, 1955

$200,765,814

$143,669,719

v

.

.

on

a

basis, working during the last

week of the

previously mentioned leveling ef¬

4,658,189

$29,870,019

.

<

Equivalent number of employees,
40-hour

moment

.

unbilled at the close of the

Penny uranium
at point.

a

.

#

Estimated balance of

issue

for

$47,167,329

.

»

Hydraulic turbines and accessories

oppor¬

appreciate as thoroughly the
possibility of loss. In an invest¬
ment context, it is obvious that
no one
anticipates a loss—but it is
equally obvious that some losses
stocks

June 27,1955

.

Ship conversions and repairs

tunities for gain and not to weigh

sustained.

June 25,1956

.

Shipbuilding contracts

or

are

Six Fiscal Months Ended

\j June 27, 1955

June 25,1956

Billings during the period:

to

individual financial positions and
even
to personal traits.
It is a
characteristic of most individuals

Somewhat

coupled

Major Contracts and Number of Employees

,

.

The

Quarterly Statement of Billings, Estimated Unbilled Balance
of

period

,

•

.

•

11,646

.

.

1 i,879

Company reports income from long-term shipbuilding contracts on the percentage-of-completion basis;

such income for any
unbilled

balances

period will therefore

are

vary

from the billings

on

the contracts. Contract billings and estimated

subject to possible adjustments resulting from statutory and contractual provisions.

.

investing from income was per¬
haps first facilitated and stressed
during the war with ?'E" Bonds.
Mutual

funds,

while

-

previously

\

v

By Order of the Board of Directors

^

'

,

July 25,1956

i,

:i

,

,

..,

the

many

technique

and its

bracket and would be able to de¬

and then revert to the donor.

was

inability to retain

sell the property; and

individual

able

years or

a

wealthy individual with

closely held corporation

more

the charity,

may

tremely
a

capital gain rate of

a

es¬

over pay
a
and thus equal

are

capital gain tax would be paid.

An

another

to

At

Taxable

and

or more

Estate and Gift Taxes

the

on

tax.

$50,000

Both estate taxes and
gift taxes

by kale.

valuation

estate

of

exceeded the capital gains tax.

or

be made for its full value, the

1954 charity

the

in

as

the income from property

more

to

erty
may

Code,

a

a

higher

tates

tax of 25%

realize

to

Thus, a new
higher valuation may result.
holding
until
death
will

avoid

or

tax. However, by giving the prop¬

Under this form of

trust,

party for

brackets

in

of

asse^ may be valued for
estate tax purposes and will retain
such
valuation in the hands of
the
beneficiaries.

the 25%, $750 will be available after

trust is a

method of having your cake

be

possible

institution rather than

ent time.

irrevocable

truly

donor. The reversionary

may.

is

However, the property worth $1,000 at the

retention of control by

eating it too.

tax

Consider

be tailored to fit indivi¬

dual requirements.

with

an

It

Organiza¬

church, school

a

improbability

estate

by giving directly , to "such

more

irrevocable

straight

has considerable

trust

rather, hospital.

irrevocable- higher

Variations of the

trust.

or,

—

as

avoid

capital gains tax driving an
investor to such lengths. On death
and transfer to the
survivors the

come, then calculating income tax
in the regular manner.
Using the
same trust for
illustration, let us

charitable,-" rion-pVofit

the

••yvr-'
to

the

on

tions such

way

from

aside

or

capital gain is to take
50% of the gain and add it to in¬

have

last

capital
gains tax is to die. This may, how¬
ever, be a somewhat futile gesture

sibility of minimizing capital gain
taxes. The method of calculating
the tax

a

principal

individual
at

a

be ob¬

may

of the
charity, trans¬
principal will not result
Capital gains may then

tax.

a

The

$96, or at
bracket—or $437.
available within
trust is the pos-.

at the top

to

be realized within the trust with¬
out tax and the whole

330

taxed

re¬

Thus,

trust

kept- working. ■;>'

$480 might

the

in

$66

the

91%

in

deduction

a

actions in

100

As added income to

and

now

Exclusion

trust.

made

Additionally, since the prin¬
cipal will ultimately become the

$480

Tax

are

be

property

Trust Exemption
Taxable

avoiding
gifts to

life.

$480, the tax within

l.V-

Income

of

tax'by

for the present value of
the gift and current income from
the property may be retained for

trust could be calculated:

a

by other managed capital.
We
find, therefore, a reverse from
previous climate where small in¬
vestors signaled weakness. It is
particularly
important
in
this
that

at 4% or

come

institutional

by

trusts area vailable

taxes having to do with disposition "of an estate — divided into

r

to

sav¬

than

more

'

method

gain

91%

a

tained

a

accumulating income.
As¬
suming a trust of $12,000 and in¬

Compensating for these tax ad¬ though quite cumbersome ii) the
vantages are. tax aspects concern¬ casei of minor beneficiaries. Two
ing losses. When a capital loss is

estate
and

mutual

investments

gains taxes—and the second those

.

of

of

or

charitable

may

charity,

exemp¬

case

the

charity is through the income

trust

small amounts and with

added

been

own

in

would realize

capital

served

gift

___

objectives

with in¬
herent flexibility to meet chang-,
ing times and changing demands.
5
The most important factor in
.an estate plan will necessarily be
the intangible benefits accruing

use

invest¬

its

individual

Another
the

this split income privilege—at the
capital gains dollar where the
sole expense of a marriage license. assume that the securities trans¬
It is unfortunately
The fundamental principal of the ferred
originally cost $8,000 and
true that a large number believe
income tax saying realized is the were sold for
$12,000 for a longthat the capital gains tax is a flat
division of income and a lower term gain of
$4,000. The tax might
25%. However, this tax may be
level on the graduated tax scale. be calculated as follows:
as low as 10%, and does not reach
This same advantage is available
25% until a relatively high' in¬
50% of Capital Gain.
_$2,000
to a family group by division of
come
bracket.
For example, a
Income (as before)
480
income into additional units.
As
Total
couple. filing a joint return may earned - income is not available
2,480
have an income, of $32,000 and
Less deduction (as before)..
150
for further division,
investment
realize a gain of $20,000 before
Taxable
;
2,330
income is generally the only an¬
reaching a 25% level. To place swer. To effect a transfer of such Tax
_____i_$473
Tax on Income alone
the advantage of a capital gains
income it is necessary to transfer
dollar: in a enfferent perspective—i
(as before)
:
66
the income producing property.
it is worth about 1 % times a dol¬
Tax on Capital Gain
$407
The outright gift or the gift in
or approximately 10% of the ;
lar of dividend income for a per¬
trust are the most convenient and
son
gain rather than 25%. '
earning $8,000 to $10,000 and generally used techniques.
2
The
increases to be worth $8.35 of
Capital gains taxes . aaovell: as
outright gift is an obvious and
dividend
income
at
.-the J top
frequently $ useful method V al¬ income taxes are not tpaid by
bracket.
i
*
*

problem
any

However,

regular

for

cases

also
be
accumulated
within
a
trust with tax advantages. A trust
acts as a separate
entity for tax

num¬

the

problem. This
Vicinus, Jr.

In most

An

bracket

ing of about $910
the value by saler.

depending on
adults, income may

state laws for

one

bull market peak

the

tax

top tax is 25%

single over-all

Wm. W.

decreases.

value

erty.

minor children and

strength of this bull market has

to 9 cents in the top bracket, there
no such
extreme variation in

only

units

of

lower

a

tion which is $100 in the

ment

is

tially

e s s e n

iu

taxes

sistent with

tax bracket

in practice but
form

and

a

come

a

in¬

The so called "capital gains
tax," whiles essentially a tax on pooled for professional manage¬
ment.
principal, is
closely connected
There are a few methods
of
with income tax. Current empha¬
sis on capital gains may be traced limiting the effect of income and
to two primary causes—inflation capital gain taxes which fall into
the sphere of estate planning. For
and the greater value of the cap¬
a
number of years residents of
ital gains dollar.
While a dollar
of dividend income may be worth community property states alone
enjoyed the privilege of splitting
80 cents in the lowest

as long as personal prop¬
The two essential branches

of

investors

mgn

the

purposes and has

trend

existed

erty.

small

at

of

$1,000 realizing an in¬
saving approaching the
of selling, the prop¬

tax

$750

then regain con¬
principal and income
later period when earned in¬

trol

this

always

witn

the

duct
come

peak earning pe¬

a

this speculative attitude is incon¬

left after taxes, but
frequently unable to utilize cap¬

has

is

bers of small investors.

that portion

relatively

a

service that

a

There

to

tax bracket and

periodic invest¬

signs is the entry in large

individual.

name

followed

amount of speculative

of the so-called

Investment advisor traces numerous (actors affecting estate
planning and the usable instruments; and examines progress
in the field, its usefulness and general effects. Asserts inflation
effects combined wiffi'lax system has produced an investment
climate making current income less important than capital
gain and loss. Maintains that mutual funds in combination
with estate planning techniques make available a concerted
program affording immediate and continuing benefits to the

Estate

small

plans,.;.

terest

Institution of

war.

Program

of

certain

saw

Exchange Monthly In¬

vestment

Partner, John II. G. Pell & Co., New York City

new

individual .may ..divert
other members .of a

family during

the

Vice-President, Wall Street Management Corporation

t :;

an

income

dium after the

—%.w '

By WILLIAM W. VICINUS*

/

Thus

monthly

few

a

the rapid ex¬
pansion of; this -investment me¬

Its Tax Aspects

Introduction

under

purchase plans,

•

R. L FLETCHER, Financial Vice President

the

25

.•V

•••!•(./ f...}t*. f*rf,
,
• n; *'
The Commercial and Financial Chronicle

•

»*«=
..

.

(486)

10

and

•

.

outlook is for a significant trade

and necessity cf continued

revival, with inflationary prospects,

items

on

.wliibhT

Akfi

Washington
Ahead

con¬

squ vitally

dependent.
v
- In
sum,
despite the
20-25%
postwar expansion of the coun¬
try's steel-making capacity, it is

are

Economic Consultants

Management and

Economic analyst near-term

From

of

sumers' durable gbods industries

Jason & Co., Inc.

President, Boni, Watkins,

other

and

C. BONI

By ALFRED

industries tor strike-de¬

gas

layed deliveries will almost in¬
evitably mean a piling up of the
mills' backlog of orders
forj;heet

Requires Business
*

4.,4 i '-Jft.'

the insistent demands of the construction,' the mining, and the oil

~
^

Near-Term Revival Prospect

"lis,*

».

Thursday, August 2, 1956

^

By CARLISLE BARGERON
It would be most difficult to find

still deficient for the requirements
growing national economy.
To

further

finance

expansion

Republican anywhere in

isn't convinced Eisenhower will win reelection
regardless of whom he has on the ticket with him. In fact, yoq will

of the

vigilance by businessmen. Mr. Boni renews the steel picture
and concludes steel price r;«y' be higher than the recently

a

the country who
find

of

all

Democrats

the

over

country

who

feel

This makes Harold Stassen's adventure all

f

■

the
.

well as to ration
^ the more amazing. In seeking to justify it to "Iv
added $4 per ton increased labor cost. Compares slightly
economically the short supplies
% a group of Republican Congressmen who sent
available pending that expansion,
him a telegram demanding that he resign his
higher i^-ntory-sale ratio of 1955 to presently
a
substantial rise of steel prices
job in the Eisenhower Administration, he said
I
"and to increasing ratio of finished goods to inventories.
^
is clearly called for. Moreover, in
his concern was their own reelection; in other
view of the generally high, level
rising government expenditures, higher
words that Nixon would drag the ticket down,
!
of employment in other sectors of
supply, and better farm income picture.
-not to the extent of jeopardizing the PreSi- in¬
U
ATthe economy, getting the ;labor
dent's reelection but it would endanger iridi*
:hi
The midpoint of the year is-a automobile purchases. Neverthe- necessary for such an expansion
vidual candidates for Congress.
of
the
scale
of
traditional time to pause and take less,
in
view of the scale o
.g g0jng to force up wages in
He picked the wrong group to address this
the economy's pulse.
It is time their current obligations (includ- odler iines> quite independently
message to.
They happened to be from the
to look back at the first half and
ing those on mortgages), consum- Q^
"sympathetic" reaction of
Midwest where just the reverse would be true.
ahead at the ers are unlikely to take on still organized labor in those lines to
To replace Nixon on the ticket under the cir¬
second, and more indebtedness by an early resteel-wage boost. Thus, from
cumstances would certainly affect their candi¬
try to assess placement of the "old car' which kodl directions—a tightening of
dacies and adversely.
'
' /
" 1
the year as a still looks and runs pretty well.
tfie labor market and higher cost
It may be that with Nixon on the ticket
whole.
Wnotiriifiire* and
of an essential material, steel-4
Eisenhower would not get quite the vote in
In doing
the industry,

same

way.

^ \

'

I;

as

sluggish sales,
Notes
equipment demand than

~

u-1

.

Gove^ment Exp^i^tures and

so,

weseenorea-

manufacturers in many other in.
dustries are quite likely to feel

De™antI

tt

to

not

he test half

In

or

we saw

a

^

>

field

set

fair t0

bid

:

-•.

who went to .work

r

men

on

in this

on

country-^-men in position te

public opinion: They are the group

Bob Taft-and crucified him.

It does not fol¬

arising them against Nixon but i£

low that Stassen will succeed in

he does

succeed, the Republicans are in for an awful hog wallow¬
ing just at the time they thought they had harmony. The next
few weeks are likely to prove most interesting, indeed.

Although Tom Dewey would be expected to show up in any
revival of this internationalist group, the chances are that he will

economic

pass it up. He has no love for Stassen. Stassen, for some reason or
another, has never been given the credit he is due for wrecking;
Dewey's campaign in 1948 when the New York Governor thought

.

means

influential

on many very

.wield tremendous influence

„

*

regardless of the possible situation in the Eastern indus¬

him, is that in the event Nixon became President he wouldn't be
internationalist-minded as is Eisenhower. The despisdd isola-^
tionists would move back into influence. This has a telling effect

Si

Relax "Vigilance

will say

as

barometer. Farm prices trend Qf course, the unfavorable
Numerous 1956 economic ioie
?ave months and for May,consecu- factors cannot safely be neglected,,
been rising in _six for the
numerous
iaoo
economic foretlV0
,
if
~hniliH
nnt
hp overlooked
casts indicated a comfortable gain r
. .•
iqei
farmers' cash
?,
f 5, ??
0 ,D overipoxea
in
the
Gross
National
Product
th t infiation-bred prosperity is
in
tne
uross
i\auonai
rrouucu t X•smce i»oi, iarmers casn
receipts were actually higher than h
unmixed hlessim?
They may have led many busi- •
the
m0nth a vear earlier
57 no means an unmixea messing,
nessmen
to believe that the un- m the same
a y
Nevertheless, the upshot of recent
derlying tide of economic events
40n top of these factors that fur— developments clearly points to—
would
be
favorable
enough
to nish a "defense in depth" fo^( the ward some lifting, in the next few
warrant relaxing vigilance
-Ex- economy now comes the fillip of a months, of the damper of hesiperience thus far this year has quite , inflationary
settlement of tancy and ^misgivings that held
shown
the
of such
view
the steel strike. Though wage- back the economy in the first
Sd the risks of adhering to it hikes do not invariably lead to half of 1956.
certainly have not abated.
: higher prices, in present circum^
Not

As a matter of fact
have yet to find anyone who can
what it is he has against the man.

Stassen's argument privately, the one he is making to his wellheeled internationalist friends in an effort to get them to finance

.

Should

into anybody who admitted he would.

run

But

>

iiwiivio

industrial states that he

Even this is hard to see because it is difficult
any

trial states, Nixon i3 highly regarded in the Mid and Far West,

clear picture. new ^records in 1956.
FurtherNumerous shadowy forces were m
sign£. point to at < least a Inventory accumulation all down
then at work, and still are, to ma e
stabilization of farm income, the the
line, but particularly in con¬
the economy s course through te
persistent decline of which in re- sumers'
goods
trades
as
the
last half of the year hard to c?fart cen^
years has been one of the
holiday
season ;v approaches, \ is
exact y.
?
m0st
depressing factors on thq 5ikefy t0 reinforce the inflationary
less

considerably

why

Bargeroa

in all the babbling about Nixon I

^d-

labor

understand

Carlisle

voter wanting Eisenhower to remain in
office would vote against him because of Nixon. I have certainly

......

.

,

Eastern heavily populated

would otherwise get.

However, the over-all picture is
pinch, impelling them to raise
the forecast n°t nearly so disturbing as the prjces too.
we
made
at picture one gets from focusing on
the beginning the consumers' durable goods secFourth Quarterly Revival and
of the year, tor of the economy alone.. Not
Inflation Prospects
n •>
We
foresaw °hiy are government expenditures y Furthermore, in an election year
no substantial
rising once more, but the demand vig0rous fiscal and monetary
rise
in
total for heavy industrial, construction, measures to counteract such inflabusiness
vol- and.
transportation
equipment! ticnary developments are hardly
ume
Alfred C. Boni
beyond continues to outrun ihe supply. ^ be counted on. In these cirthe first half,
?rdefs £eep piling up,v_and cumstances, with a fair prospect
for business was then operating
the steady
f a resumption of full-scale proat or close to limits set by plant
eraf an<l .Slaie Pr°6rams *or in
duction in the automobile lnduscaoacitv and me suppiy
try at the outset, at least, of the
rapacity ana the supply of skilled vestment in roads, schools, hospit .
t
production and sales in iqi-7
H
1
;n
thp fourth
change

to

son

of the

some

he had the Presidency in the bag.

an

'I

•,

ame

It will be recalled that it was

,

error

rt

of

more

stances the immediate rise in steel
wage costs aione amounting

™

symptom than

a

cause

a

,•

7?ve?:ory

,js ra 10

^

Public

series

mid-1956 inventory

sales

they
to

a

on

were

are

level

rvirfinn

finichpri

more

vesterdav

than that amount.

eral

total inventories
un

going

cinnHc

up.

Sales
„

tnp

in

inat is not a gooa sign.
a f*onri sign

That is not

The Automobile Picture
,-

,,

•

*.

vance

On the other hand, the particular
product
of which finished

inventories have piled up
most strikingly is automobiles, and
goods

according
dealers
their

are

to the latest reports,
gradually working off
stocks.

excess

The

severe

cutbacks in production, with more
than 200,000 employees laid off in

the

Detroit

area

alone,

help-

are

ing mightily to effect this

,

i

correc-

otter-than-wtge5"^^3^

^iUs

x

11J

!•

tg0

have risen
n*

xi.

cancelling

$7 50

average

Der

*
revenue

ton
,

«verdse

_

the

out

addition to
«

x"5

a

,

J'

,

.

»S

rJ

c

profits to their sales revenues has
been

persistently- dropping. Sec0nd, an even more solid ground
for
a
more-than-compensatory
price boost can be found -in .mar-.
ket

conditions.

After

Everett

Smith,

,.'V V

v

.

'*It is

And

Fed-

pects

session

an

a

Sentiment

I

insofar

mean

as

year

f

regardless of whom

continued foreign aid is

against

so.

more

safe

a

end altogether,

that the cause of internationalism
setback with Nixon in the White House, the pros¬

continued aid
Congress just ended. The aid that

of

even

will be at

argument

was

was

strong in
voted was

the
ap¬

Any aid voted at the next session will

proved most begrudgingly.
be

peace

that there is to be less of it next

concerned.1-

''

/

'

,

4

4

con

With Harris,

Joins Gibbs & Co.

Upham. *

OMAHA,
Gerken

is

now

Neb.—Donavon J.
with Harris, Up¬

finar.^

n? thZ

the AreJ:ir1eJnen^ .of .?he

ham & Co.,
r,

}

.

prices
nnnnnn
are regulated
basically by supply total
and demand. There is no question
----' '
but that demand for steel, taking
With Wachob-Bender
all forms together, now far* out(Special to the financial chronicle)
strips the available supply and.
OMAHA
Neb
Edmund
P.
had
been
doing
so
for
many
Russell has'joined the staff of
m°nthS befor? the strike.
Wachob-Bender Corporation, 3624

...

'.

.

Joins Smith,

,

v'..

.

WORCESTER, Mass.—Robert J.
Cogan is now affiliated with Gibbs
&

1904 Farnam Street.
:

;

(Special tc The Financial Chronicle)

(Special to The Financial Chronicle)

Jiif

all,

are

his

to

as

is in the White House.

Fiscal

tl_0

in? aJd

t

commentary on the great job for peace that Stassen was

would suffer

1?0%'
™g W
part $125,-

tv.o

a

And if he doen't succeed with Nixon it is

,0 se"es.1 19ADtJ co,n"

nnmnkiinn

Republican

for world

solidated notes maturing Aug. 15,
1Qr«
1956, and the balance will be retired from the cash resources of
TTrirm

major

a

bet that his quest

Board

1956

was

to kill off Nixon.

non-

1956

the

Bank

000 000 of 3 20% series I
^

A

that advance effected. As

n„„lru

n? bv

Loan

Th® notea a.re pritehed
reZnd °
U" Ubea
to itJIUllu in

extent

an

substantially

•'

■.

.

,

,

15

it

doing that it is now to go begging for four weeks, while Stassen
turns from this very noble enterprise to the dubious one of trying

Agent of the banks and a nationwide group of securities dealers.

Revenue

.

steel

^

_

consolidated

that

Dewey's candidacy.

$77,000,000

dated Aug

(Aue

Home

through

Declining Steel Mill Profits to

now

goods in the
has been steadily

of finished

of

is

fact

little about it in the hope it would be smothered in the other
campaign oratoryr Certainly it was not a speech designed to sell

j

position. First,

the rise then;

sluggish, barely holding
course
Second the pro-

nf

portion

were

cnrr>ri<?inf? if stpel r»rire«? were
caxJa9ie n_°_ies», t?
be surprising 11 steel prices were and due May 15 1957> was made

the

and

mid-1955

the

D-1957

callable notes

But there are

between

offering

the

muoh

upon

speech by Stassen that started that revolt. Republican leaders
shocked by the speech at the time, but the tendency was to-

say

Federal Home Loan Banks 3.20%

steel

of

ly not boosted by substantially

s

.|

output>

-

r

higher than a year ago.
two big differences

shghtly

tQn

schedules. In fact, it would

price

onlv

is

ratio

a

revisions

forthcoming

jo Diinon

inventorv-sales

$4

aimos^ certain to be reflected in

higher than the mid-1955 figure,
the

*q

cloge

tQ

billion

record level, some $6
recora

at a

dwelt
farm

1

mpls»

nt, business letdown.
their:v aggregate value is

InL
Though

west farmers that threw this election to Truman. It has never been

a

Mounting inventories aie rather

unexpected revolt of Mid-*

an

Co., 507 Main Street.

y:

Clanton

(Special to The Financial Chronicle)

Joins Bache Staff
(Special to The Financial Chronicle)

*

C.—George
DETROIT, Mich. — Russell Mj
Phillips has joined the staff of Blando has joined the staff oi
Smith, Clanton & Co., Southeast¬ Bache & Co., Penobscot BuildingJ
ern Building.
GREENSBORO,

N.

A.

With Clement Evans Co.

With Baker, Simonds

.

(Special to The Financial Chronicle)

^

hinge
new

reaction

public
to the
models which will be introon

duced^ main'ljTdurjng

the

fourth

quarter.

anticipatorythose steel-consumers Company.
inventory build-up.
But
even

who

The drop in

the demand for ears
is probably caused
in large
jiart
by the fact that consumers have
loaded themselves up with instalment

debts

debts

to

and

about

home

the

mortgage

limit

of

their

present carrying capacity. Not all,

by any means, of their record inEtalment

11 is true that Part bf the Pre" Farnam Street. He has recently
strike scarcity was attributable to been
Jobn G. Kinnard &
k

indebtedness




represents

were

thus

for the most

forehanded

part, used

up so

have,-

much

of their accumulated stocks in the
past

m0nth

that

they are now
back in the market again. It is
true, also, that the scarcity is
greater for some items, notably
plate, structural forms, and heavy
pipe, than for others; such as flatrolled products. But trying to fill

L. T. Thorburn With

(Special to The Financial Chronicle)

AUGUSTA, Ga.—James F. Noris

vell
ment

BOSTON, Mass.—LewisT.Thorbecome associated with
Preston, Moss & Co., 24 Federal
Street. Mr. Thorburn .was formerly office managed for'Minot, Kendall & Co., Inc.
burn has

with

associated

Evans

Cle¬

& Company, Inc.,

Marion Building.

With F. L. Putnam

Preston, Moss & Co.
(Special to The Financial Chronicle)

now

A.

(Special to The Financial Chronicle)

Mass.

BOSTON,
Donovan

with

F.

has
L.

—

Putnam

Incorporated,

Timothy J.

become

77

&

Franklin Street,

members of the Boston

change.

connected
Company,
Stock ;Ex-

DETROIT, Mich.—Jack L. Hunter is with Baker, Simonds & Co.
Buhl Building,
members of th(

Detroit Stock Exchange.

First of

Michigan Adds

(Special to The Financial Chronicle)

DETROIT, Mich.
Schmidt

has

been

—

added

John
to

I
tht

staff

of First of Michigan
Cor|
poration, Buhl Building, member]
of the Detroit and Midwest Stocl

Exchanges.

Volume 184

Number 5556

The Commercial and Financial Chronicle
v
I. -""V.
1
if.
' ■

To Form Pacific Coast Stock

Exchange
L. A. Exchanges

To Csmbine S. F. and
SAN

FRANCISCO, Calif.—For-

changes

mation of the Pacific Coast Stock

Exchange, which will
controlling

body

of

each

become the

the

and

division's

members

Board

These

*ernors.

present

two

latter

Banks Prefer

Gov-

be

annually

between

the Chairmen^*,
Angeles and San Fran- "

of the Los

:'v:,/; •, . 1 ; . v-v////;
During the past "three months,
joint committees from the two
....

have

prehensive

conducted

studies

operations of the
The
William H. Agnew

and

San

Exchanges

Francisco

has

been

re-

by Frank E. Naley, E.
F; Hutton & Company, Chairman

Lbs Angeles Stock Exchange and

mL.

Co„

Governors of the San Francsco
Stock Exchange.
^

both
both

'

the

believe

the

Pacific

to

give

banks

financial

broader

m.t

that

wh

>Exchanges/^registered

service;

have

must

area

wita

tho

t

to

its

"that

trpnd
trend

changes
the

nf
-of

contrary to
maior
F.vmajor Ex

most
; most

volume

SEC.

And

the

that the

30

s°me

with-*the

Padfie'

Bank

mio

^

and behave

public

during

and

econ¬

as

by

30

some

its predeces-

the

days

of

the

*

ot

of

the

.

sys-

bankers,

headed

by

j.

make

sacrifices

sacrifices

the

at

community
in

even

preaching

all

of

the

further

a

means

depreciation of the
of

their

always

expense

After

Merestrates

further

at

is

of

pre-

Government

a

large
Loans'

by the banks, the value of '
which is already well'under
pur-;
chase price
and shows
a
large

bookkeeping

a

the

banks

suffer

loss.

are

in

"

Nevertheless,

quite

the

to ;

prepared

sacred

name; of

orthodoxy
'*

04.

■

f

Voluntary Squeeze to Continue
Mr

to cut their credit

by means of a
reduction in the volume of Treasury Bills which would lower their

to

are

expense,
which
difficult / than

more

rise

spokesmen

held

and
liquid .assets.
Strangely
enough
quite -W a
number
of
bankers would prefer to be forced
_

own

these

orthodoxy

amounts

bankers to keep down the

.

new

pared

present

the

the
of. higher charges on the
debt. What is even more

remarkable,

n d.-f;volume of credit belo\y the level

tv,of

of

the

two

^/them feared

Maemiilan

i<?

nnt

inclined

listentoLuch advtoe"
tkueh
he
S nnZ:'

howeVerto

s

■

trontionul

thun

Ho

urne

ovnnnto^

W^th^Trpn^ii^hrtft wS*™
sumed bis present'office, it
V
thhm iH ^r impossible, to ; visualize
him as
thf aJraSgement TheS an- source? of the banks S fhe adopting a doctrinaire attitude
Prehensions were'soori^dfsDelled S. of rinn?e»nt,^hieand incurring unpopularity foe;
a

"the

"

"

'

combined numbor

■

«

^

mem,

nouncing

Co.

&

ures.

"The

Members

nnnnunro

Clnnlri

Hoc

drastic

main, object

an-

meas-

Hnrtn

_* V

-

Selt ^"Sson'

of arrang-

was to impress
the necessity of

making the existing

New

"'nantrp
credit
York"stock Fichan'ge7~a7inounce:credit
T?

piain

question of

any new

Nouil-AnnAinlimon-V ing the meeting
K|ppWISii!£B2Cifli%>- tiTe bankers witn

T>V"ii1i»-»

n

legisiauve

of

measures

squeeze more effective.
more effective.
squeeze

i".

.

.

*

*

..

Disinflationary Drive

power

lor

ud
up

excessive
means

*

Re-Affirms

Sc^ded^^neri^

maae

no

ilCWW

tkni

the sake of

addrealS'fcSS.
mopping
that there

n

ibirSQH IaOz AlillSlil}^0S

snares

ox

.

was

Hirsch

exampleheripointedy mit"

worst

Coast'^L^o^
■

in both shares and
dollar volume, is greater than for

.

iniovm^io™

market through its two divistos^ auuiebbing

year,

'

been

politicians,

Exchange is ah association which of
wU1 0Derate as a Stock Exchange

throughout the country,

combined

this

Paul Einzig

®'.n, ^ } a

Exchanges for the first six months
of

Dr.

-

nc>°

phenomenal
growth. "It is interesting to
note,"-for the purpose: of conducting
he
continued
pace

thp
the

4

an -

other

the

.

dynamic

kA(!

has

automatic gold standard. They are
quite prepared to pay the price of

tem the Chancellor relies entirely
the loyalty and public spirit

two'commit- P adaress! the bankers directly,

the

during the

there

industry

and

institutions

of

that

journalists.,

did

sors

•Governor of :,on

+Hie

chairmen

a

a

thrclock bX

years

squeeze should continue

mterme-^.control* Under the existing

•

Coast*

is

two

or

Britain

put

-

ther

irving Lund'borg & Co.;iithis intermediary role of that inGross, Stone & Young- isfllution-' °n *he present oceaberg,.and Marco F. Hellman,.. J. .sum, nowever, Mr. Maemiilan felt
Barth & Co.
V
*'-v
woui dserve a useful purpose

Exchange, through its two

divisions^ will be in

keep

its

p;

Chairman

such

omists.- They seem to think that
the Government could and
should

voluntary form, or
give way to
the Chancellor, '-measures
compelling the banks to
c o m m u 11 icut crednt, or
indeed, whether it.
rated
to
th.e ishould
be
replaced or
supple-,
City-through mtented Jay measures of physical

C.

j^otto,

memberships approve
Naley said,

plan,"

this

Mark

trouble

year

financial

The more difficult task was to
deal with the
problem of whether

the credit
in

4

Co.;

'

jWh^hbi' it should

-

-

tors,

-

it

established

*

&

goodwill

banks

striking revival of
monetary orthodoxy among
bankers, Conservative

>

.

formation^01 trie PacificyCoast
Stock Exchange.

position

y.

Exchanges

-

Stock

r

j

Exchange..

Duncan

in

E^hariffetvElworthy> ENvorthy & Co.; Ronald Even the Socialist legislation pro-* to which they would be in
E
Kaehier
President San Fran-;vidmg lor the nationalization of position to
expand itjon the basis
authorization^ for, the , ciscQ stock Exchatige, and George
Bank of England allowed for of their existing volume of cash
of
the
Pacific
Coast
~0

requesting

"we

-

ter & Ca; Calvm E. Duncan, CalE.

little

avoided.

nk
pP<kfpp rnmn,iknrV'such a return to orthodozy in
Bankers Prefer Compulsory
form

the

s"

?onp' £harles H. CJLay, Dean Wit-.,

vin

The

last

■

®

BeTk

of

'"If

to

Hitherto

&

Francisco

...

be

Monetary Orthodoxy Revival

.

°

•;

Agnew, Shuman, Ag& Co., Chairman of the Boa?d-

mlmbershin-of
membership of

nity

~

H.

could

a

the

«

Exchange
Harbison

part of

course

*

squeeze system.

preaching to the converted.

London bank-

Noble, Tulk & Co./, and
w. G. Paul,
President,JLos Angeles
stock Exchange.
' J *

ment made

the

.

Noble,

of the Board of Governors of the :

new

Of

-

the

on

Eng.-^K5u^24 the continuing
lives

Henderson; Franz Osthaus, Bateman, Eichler & Co.; Cluster L.

vealed today in a joint announce-

William

Harbison,

voluntary credit

mreommu..-

markets.

Angeles

hopes that with

unabated. He had no
f Exchequer, Mi.-difficulty im convincing his audi^created a precedent ence about the soundness of his
y inviting some 30 represent^- argument, fob-- he was, in fact,

0

committee included the Chairman

Frank E. Naley

McClarity

Angeles

Stock

the

Los

two

' *

prac-; ^acmillan,

the

on

IXJNDON

Er anc-n

com-

ticability of combining the activities of the two Exchanges under
one entity but
continuing present

Los

endorsement for the present

Divisions.

Exchanges

*

including Bank of England heads, and his disinclination to
impose compulsory credit squeeze along orthodox
lines, which
is preferred by bankers who are prepared to make the financial
sacriiicesv required.
Comments on the
"striking revival of
monetary orthodoxy," and the Chancellor's success in
winning

division.

Chairmanship of*-Pacific Coast ^
^
Exchange
Board
will ""alternate

cisco

'

bankers,

ap-

pointed by the Board of Governors
of each

4

Dx. Einzig reports on the recent British Treasurer's
precedentmaking step in inviting and speaking directly to 39

;;

IX

while trying to check
wage in¬
creases, are paying higher interest
to capitalists.
So Mr. Macmillati

Compulsory Squeeze

By PAUL EINZIG

from

of
to

(487)

liquid resources by such
lapsed some years ago, the

Government

tion

would

in

be

a

posi-

revive

to

course, run

it.
It
would, of
against the Conserva-

tive policy of liberalization so that
the Government
the Government would not resort
to it unless compelled to do so
the

"neffeetiveMss

•

of

°

by
the >01-

principles he does
be

not
the
of
believe in* He nrAQPnt vnhmtaw
would Prefer to
Parrv

nn

on
the present voluntary
credit squeeze, but if
necessary he
would resort to measures of con-'

carry

trol.

Having

made

his

attitude

plain, he succeeded in impressing
bankers sufficiently to obtain

the

their endorsement of the continu¬
ation of the present system.
It
remains

to

be

seen

whether

the

banks having had their warning
considered Kit untary credit squeeze.
/
will' display
more
zeal
in
the
h? f
bv^lSfl?? °ancf thf comb
Avenue, New York City, and that necessary to administer anotner
another
and
The bankers would prefer com- future than
y. A'e0D,u/0- a-na. the^combined Avem*e,E.
they did in the pas&»
Robert
DeFine
v^lne exceeded the -„_c_omD.ecr Robert E.?DeFine has become as- dose of exhortation to bankers, puisory credit squeeze on ortho1955
DerioJ
has become as- dose ot exhortation to bankers,sociated with the foreign depart- because the volume of bank adbv «M9Q7 411 "
P
sociated with the
dox lines jn tke form of
ijnes in the
oi higher
'
'
' First six
First six
mont in the main office, 25 Bropd- vances was inclined to
With FIF Management
creepy up bank rate and-large-scale funding
Mos.—195G
Mos.—1955
/ Street, New York City. Ho^urd recently. Moreover, he felt that of the
Treasury's floating debt. In
(Special to Th^ Financial Chronicle)
combined Shares.
23,577,334
21,692,259
S. Shapiro and Morris Weinstein recent criticisms of the Governorder to be abie to induce holders
Combined viiiueS-S337^7ii,G78 $373,414,267
955

RR^n7?

r

nel'

'Mr;

Macmillan
,

.

.

.

,,

.

"

have

v Chairman; Agnew
emphasized
thefact that each Exchange would
remain unchanged except for the,

become

associated

with

ment

the

called for an
of"TreasuTy'biUs"to'conVert"thei?
]c™'"ho'ding into Bonds, the Govern^nl®n 'y gA numbe?of bankers ™ent.would have to offer a very
his omce. a numoer oi panKers, high interest rate and

i

membership of the Pacific

UBvi Vyf ' DIWf* 11
Ifi BfllWai

"The*

Coast

iii(i

Stock

Exchange," he said, "will
initially be 140. There will be 60
-

.

,

rncmbcrs

froni

toc^

Exchange and 80

T

'

from

.■

RICHMOND, Va.

'

Brown

hsis

1620-A

The

gage

proposed

new

Brown

agreement

the

for

Securities and Exchange Commission and no action will be taken

contrary to

the expressed

of the Commission."

;

:

j

-

opened

Hanover

in

a

—
sn

oifice

Avenue

to

flation.
en-t^

securities business. * Mr.

was

-

"From

annual

issued

statement

-

by

summer

luncheon

study, it is our profound opinion that unification of
the two Exchanges
will.result in

members and guests

sustained

Club

our

Coast

growtn

Securities

for this Pacific
market

on

Satuiday

of^ England,;

to
further
criticisms
and
ohargeg^that the Conservatives,

in

4

at

1

MscmillcUi; gave

his

•t.;u

time, could rank

as

which,

group.

proposed will provide distinct
possibilities for added income to

t

-

as

firms

member

fits

the

to

and

investing

industries

whose

listed

either

on

changes."
all

ehange

bene-

public

securities

to

are

both

Ex-

information

Pacific'Coast
•be vested in

or

MIAMI

of

each

Ex-

Board of Governors

Presidents

of

the

two




Ex-

Joseoh

C.

Dries

jiag become connected with Frank
D

Newman &
*•
...»

i

i

Co., Ingraham Bldg.

jo show that there
cation

was

of

the '

u

•

n

(special to the financial chronicle)

ORLANDO,
Peters

Fla.

,,

—

E.

Hobart

same time, Mr.
wanted to make it

matter

of record.

Corpora-

appears

;v':

SEABOARD DRUG CO.,

INC.

Class A Stock

M^cplain

"s gveVreason ^r an in-'
the cTedU squeeze,

Price $1.00 per

{^^ication o^

share

He cor]sidered it necessary to em*

disinflationary measures
take its P*30®- On the

Seaboard Drug Company, Inc. lias been organized for
the purpose of acquiring the

squeeze from two conflicting points of view. On the one
hand, it is frequently argued that
the existing form of credit squeeze
is
ineffective,
and
that
other

ing

rights to certain proprie¬

drugs and engaging in marketing and distribut¬

tary

them, and

right

to

particularly

to

exploit the

sell "Mericin" without prescription

alleviating drug.

should

exclusive
as

-

a

pain
,

G^her hand,

lt has als0 beer? ai"gGed th.at> ]n
of the

business

recession

in

FOSTER-MANN

the

automobile industry and in
other industries, no further disinflationary
measures
of
any
kind are called for. Mr. Macmillan

has become affiliated with? emphatically rejected this latter
Harrison
&
Company, contention by pointing out that
National Bank Building,

as a

the inflationary wages spiral

was

40

.

i

INC.

Exchange Place, N. Y. 5, N. Y. ' BOwling Green 9-7900

July 27, 1956

Wo-

^

283,750 Shares

,,

H.

Florida

V

Management

tion, 950 Broadway.
-

justifi-„

disinflationary

+.

YAt

no

for the suggestion that the
alone
have
to
bear
the

burden

view

.

With John Harrison Co.

consisting of the Board Chairmen. John
and

Fla.

'

government of the
Stock Exchange will
a

(Special to the financial chronicle)

sup-

members

the

With Frank Newman Co.
•

and

'

According

plied

greater

E.

affiliated'

*

'

with FIF

.

only

the largest

The Pacific Coast Stock Exchange

7.

Richard

and
h

All of these shares having been sold, this advertisement

lecture about the wide

variety of disinflationary measadopted by the Government,

the Mar-

.Aug.

a

R-m... Entertainment is, planned.
phasize thiS) in view Gf the growMrs. Agnes C. Burhans of Dean
-ng volume of criticism of the
regional Exchange in the country. Witter & Co. is President of the
crecjjt

in

>

■

.

j

ures

for

quette Room of the Lake Shore

Mr.

audience

banks

Chic. Inv. Women Lunch

Chairmen Naley and Agnew said:

joint

k

Government, while preaching disGeorge W.; inflation, is itself ; practicing in-

CHICAGO,
111. — Investment
Women of Chicago will hold their

A

Sugarman

':

formerly a Vice-PresiSaunders, Stiver & Co. of
Cleveland, Ohio.
;

/

lead

Bank

;v:V:pointed out recently with a varyinS 'degree of emphasis that* the

dent of

wishes

■

■

0fflC6 III RlCllIROIMt 7

the San Francisco Exchange.

Exchange will be submitted to the

ni

nationalized'

^

.

.

I^ps Angeles

members

row^jSt^Curts Sam*£

this would

desiernation as a division of-the-iPd:-t
designation as a division of the Pa¬

cific Coast Stock Exchange.

by "bankers

firm as registered representatives answerxyir1hich
at the 499 Seventh Avenue office.

-

The Commercial and Financial Chronicle

the redundancy of railway investThe important thing to re-

ment.

Non-Resident

member aboti't

and

of Trade

and E. B. CARTY*

Commerce,

resource

new

Bureau of Department
Statistics, Ottawa

tive

resources

rate entrepreneur with know-how firms.
and resources behind" him has partly
many

produclargely in

new

were

the hands of Canadians.
In contrast

Inanalyzing the changing extent and rate in non-resident own¬
ership, control, and claims to future income of Canadian enter¬
prises, Canadian officials reveal: (1) foreign control rose from
43% in manufacturing, and 40% in mining, in 1948, to
/ corresponding 1953 ratios of 50% and 57%; (2) foreign
ownership is now less than in 1926 but non-resident control is
higher; (3) foreign control proportion is higher than in any
other highly industrialized nation; and (4) close to half of
corporate profits accrue to non-residents. Trend attributed to
accelerated
development pace, changing technology, and

going

expansion of new

their

The

own.

very

int.rofhirpd

new

a

which

oace

either

gross

or

and the smaller

salaries

jn

putting

in

proportion which
make up of
manufacturing.

wages

The

comparison
of
average
of
capital invested is
particularly striking. While the
average investment per establish¬

amounts

tries. This kind of development
has given impetus to the growth
of non-resident controlled firms

equity forms in rethe use of the capital

of the latter have in turn hastened

industry
a
few
years ago seems to have been ap¬
proximately one-quarter million
dollars, the average investment in

the process.

an

In this cor-

One. of the outstanding features
is the predominant part of these
investments which is in the form
of
equities. Direct
investments

tablishments

investors

for

turn

which

in

they venture.

porate society
industrial

an

an

in

which

live

we

with extensive powers

the

whole

Canadian,

manufacturing

and the enterprise and resources

is a unit
and privi-

company

in

ment

controlled

States

United

Canadian)

in

es¬

manu¬

facturing was close to $2 million.
In' the larger United States con¬
trolled firms with investments of

characteristically in this form $1 million or more the average
as
they do not usually involve value was some $4^ million. This
It would, then, be a profound borrowing from sources outside of group makes up some 90% of the
mistake to identify this
change parent companies who own the investment in all United States
longevity and

giving it a
ability to grow.

leges

.of

the

so

as a

the

last half

dozen

throw-back

years or
reversion to

or

characteristics

of

are

controlled

Consequently

securities.

equity

direct investments represent in
earlier the main a proprietary interest

an

non-agricultural commodity production. In

in the vital area of

addition there has been a grow-

assist Canadian Industry^the more con- ing non-resident portfolio invert*
perspective the spicuous economic." development ment in the form of. minority
whinh we are headfinanced bv non-resident capital holdings of stocks of Canadian-

into

in

and

controlled

percentage
of i
net production,

the value added in

servations at the start may

scope

rapidity Of the changes have

States

the

proprielary interest through the
companies which they control and
this
will give
them the future
claims to income which accrue to

have

study of Canadian in- the changes and point to some era of rapid Canadian growth,
dustry today words like growth of the results.
While non-resident Concerns have
and
development quickly come,
a few very broad historical ob- always played prominent parts, in
and

United

than

the

of

the

group

wealthy technically advanced enterprise in our extractive indus-

and industries in

any

into

and

manufacturing

in

reason, may

account

which
important

resources

non-residents

opening-up of large-scale enterprise-—all requiring huge capital
outlays, Authors observe such consequences as: effect upon
development direction; increasing debit balance on income
account in balance of payments;
earning withdrawal and
cumulative effect holding down Canadian equity participation;
interrelationship between U. S. and Canadian economies.
In

in

larger well equipped type of firm

today we are under-

great

a

a small
and organized
would lack. The new Ca-

nadian industrial realm is one in
which the greatest prizes go to
the favorably situated. It is not
surprising then that there has
been a rapid development of the

which was being

same

for
the
much
percentage of the labor
force in Canadian manufacturing

financed

concern

The

smaller

advantages which

locally

equity in

an

Instead the

created.

Division, Dominion

Trade

getting

tomatieally
a

By C. D. BLYTII
International

th'at' earlier period

heavy investment is that the
non-resident investor was not auof

Of Canadian Industry

.

.Thursday, August 2, 1956

..

(488)

12

manufacturing
Canada.

The

con- ;

average)

earnings
of
employees
in the
larger firms were about $3,500 )
compared with just under $3,000
for
all employees
of Canadian:
manufacturing establishments.
The value added per employee
in this selected group of United

This

late

in

cerns

by:

,

,

controlled V establishments

States

compared

$8,300

some

was

-

with

about $6,000 for all manufacture
and although some of these un- the establishment of a number of
",v •= ^")));•
dertakings were controlled income accumulating investment ihg. ~ ^r-;
the last decade or so.
But that abroad, the main means of fi- funds to participate in Canadian
New Data on Concentration '
irpity to the United States and ac- seems to. lie at the heart of some nancing them was through sales growth. But the portfolio invest/ Extensive statistical details on;
cess
to the industrial technology
0f the problems of foreign own-< of bonds in foreign capital mar- ments in industry: are small in
the production and employment
of that country
have also con- ership.* Had it not been for this kets.- The more characteristic in- relation to. direct'investments at¬
in the larger United States con- 1
tributed
JL,~" '" ' • 1
- ^
-*
^-* :*- —■
1 '—
^
to

reaches

Once growth

trace.

of

a

certain stage it seems to accumulate momentum. - Canadian prox-

industrialization

tion

and urbanizain Canada during

underway

.

.

,

trolled

r

have

United States

vealing'much new- information' i>n:
this 'Secto* of vbiir 'ihdustry. The'
"study- has been. ^nceV extended)
whether direct and "provides further clear evi- -

Can-.- small concerns owned privately; dustries.

activity .rise in foreign investment in

corporate

manufacturing companies
'recently been published re¬

industrial equi-

dence of the

degree of concentra-)
carry with them a
tion ~ in
larger
establishments
of capi- who usually played a part in the participation :, in ' the industrial
which was revealed in outline bytal and special skills are essential. life of the communities in which growth of Canada and in the acof the1
Manufacturing, mining,;, and pe- they lived and -where the product cretion in values and in incomes' 5;^stribptiotti by
troleum are the areas of Cana- was "home-grown" insofar as in- which accompany growth.
The capital invested.; Available time)
only permits a summary of the dian investment where the recent dustrial design entered.1
.direct investments^too, have the
new
unpublished details on con¬
increases in foreign capital are so i g
'
.
;
advantages which go with their
centration.
The
study
coveredspectacular, and these are the Increasing Non-Resident Control ciose links with industrial techthe manufacturing production and "
areas of activity absorbing .ever
The extent of non-resident con- nology of the older more devel.larger proportions of the gainfully ^roi j^g increased with the growth- oped industrial societies abroad to employment of the United States
controlled concerns with an in¬
employed. •
of Canadian industry.
There is which the parent companies be.

this
trial

supportedby
in

technology

abundant

,

__

_

United-States indus-..where large aggregations

manner

sources

of financing

speeded and exof Canadian
development. And important parts
of
the
growth " which" provide
sources
of
supply
for
United
States industry are in turn cjosely
linking Canadian growth to
growth in the United States econThe contrast with the structure no other nation as highly .indus- long.
'
k.
omy. Participation by British and
of the Canadian economy only a trialized as Canada in which there
^
European enterprise and indus- few decades back is vivid and is fs such a large proportion of in-"
'
Comparative Results in
try to a greater degree than for- closely related to the ; changed dustry* controlled by non-resident $
Investments
merly should alsa be noted, alJ pattern of international indebted- concerns; Historical parallels; are
While a close consideration of
though it is much less in scale ness> The decline in the relative not available. The industrial de-; the technical advantages of the
that country has

the

tended

process

.

;

tt?

p

j

United

Half

States
Owned
,

sL

.

place of agriculture is symbolic velopment of the United States, foreign-controlled group of corn-

sP°nsored

industry.
by

Non-Resldente- •
.

.

Gf this

...

.,

.

^ J.ne pace of development would

change with less than one-

f0r

example,'

was

never, so

de-jpanies lies outside of the scope of

Pendent^upon external capital; In: this paper there is plenty of evi-

or

and

90%

of $1

agricultural

more

United States is believed to have

economy

which- preceded the First
r the great investments

preat

of

products

States

represented

controlled

Canada.

companies

in

This

study showed that
these larger firms accounted for
30% of the selling value of fac-.
tory shipments in 1953 and 21%
of

the

employees

although

1,500 yor more,
controlled

they

2%

of the

the

larger

employment; of
20 United States

produced in Canada

close to: the peak, ' the with those of the parents outside
cap' amounts per capita in that coun- ; of * Canada are a clear sign of
Canada s ca- try Were only a small fraction of this. Likewise in other fields such
were ^largely - the Canadian per capita debt to as many extractive industries in• been

million

about
of the capital iri all United

more

compared with one- 1914 when the total of foreign dence that it exists. In the field represented only some
establishments. But in
third even as recently as in 1931. long-term capital invested in the) of manufacturing the similarities concerns with *
agriculture
In the

'

vestment in Canada

establishments

in

that'

»

Kt?; ital..whlch ,exceeded
in
pacity at that time
hS S™Sd "J Ste-IV ral^ays. and m

SdtolSdSkSv

the deereeofUnancialassistance

It

spheres )other countries. In early periods dispensable knowledge qt^toc-

.°f SOCial capital-financed by; gov- ;of( development in that country esses comes from the parent -in-5
?nmen} borrowing and-not inthe as in Canada much of the non- dustry. The concentration of the

woufdbeveirdifffculttoevaf; fyTa^Ltebeing developed

uate the borrowing of

but in

some

providing the indis"know-how"
without

great

very

pensable
which

would

Changing Ownership Composition
The
the

consequence

u
much

of

investment

foreign

in

of

that

much

earlier classic period of Canadian
develoDment in the decade before

invest-

World War I, also contrasts with

equity
ownership and control which carries with it the poienuai claims
Xies
wil l
11
Uie
potential claims
to
participate
m
subsequent
growth in the rapidly develop-

some
of the effects which are
likely to occur from recent investments. In that earlier period
vesimenxs.
in inai earner perioa
one of the results of the foreign
investment and immigration was

ventures

be

greater risks.

i -Most

of

increased

this

ment has taken the fom, of

ways, other utilities and govern- in larger units can probably
™ent and municipal bonds. Direct taken as another general sign

In

observing this rapid

develthese special circumstances
questions inevitably
arise as to the price we are pavunder

opment

ing

a

as

p

stion

of

require
fined

3

nation.
...

this

statistician
show

,,

would,

of

course,

3ny

svsilsble

to

1

•

f * urthermore indus-

1

the

extent

of




some

True,

the

invested in

the

ment

"of

snd

an

extended

resources

Velnn
velop

nermiftine

ne™f
new

them

inHnctHpo
industries

over

n0n-resident

tries

where

nr

0r

tn
tn
to

owned

these

Het^iro
take

indus-

^riods

was

,

^ana?ian conironeo group 01 en
ferpns®f af a wh°le. This may
be
nart
because
the non-resiS Partly because tne non resi
v

in- which la?el investments of cap^
large investments ot capi
,al are necessary. And the Cana-

simnler

typlCaI S1Ze °£ plantS was dian-controlled sector of industry

includes many small individually
Th«
Prominence of owned units But whatever is
the United States and other non- the reason the non-resident.con¬
resident capital in our industrial trolled group of concerns appears
.

neriod

r-

general rule, to much larger

deint controlled investments tend

h

J

resident

clsims for income but these were

as a

curfedr<most Tapidly^In^periods 3nd appa.rei?JJ.y more productive
local
eXepreneur^ had c™an-controf™dUPBrouT o? en^

llfs is 3 new festure which csn
non-resident
cspitsi
sssocisted with the modern
rsilwsys 3nd govern- highly mechsnized industry snd
municipsl bonds had the opening up of lsrge scsle re-

over

re-

We will however trv
VVC
Will, llUWCVCi, uy

individual

by

proprietors, the wheat growers,
This created new wealth through
the production of a commodity
whioh was to be the leading
source of Canadian international
credits

.

bslsnce much more

thsn

bldUblltldll.

to

The full evalu-

ploited

to present 3 psttern of generslly
much higher output per employee

rising

hurdpn
Durden

price

wa«s
was

level

rpdnppd
reduced

or

by

the

employment, And in the
largest /group of - concerns,

those

with
between • 1,000
and
1,500 employees, 25 United States

the Csnsdisn - controlled
The sversge smounts of
sources nprind nf noonla>.nt0J the cspitsl invested per enterprise
which ehsracterizes
rPPPnt
ocfoWicl.mQnf
ond
nm-

hv
by

a
a

the re-

organizations which resulted from

earnings paid to employees
substantially higher in

age
are

also

quently

the

foreign-controlled

non-resident

corpo-

the

ratio

about

group

of

over 39%, and
employment
was

was

of

one-third.

It

is

in

the

es¬

tablishments with employment of
500
and
over
that
the
greatest
rate

of growth in Canadian man¬
ufacturing has occurred since be¬
fore

the

In

war.

establishments
below

500

plants

considerably less.-For
precise figures are

present available but it is
that

would
of

duction
United

an

the
be

ratio

in

the

one-quarter

allowance

with

of

groups

at

hood

groups

employment

the ratios in
in the United

persons,

were

those
not

the

with

controlled

States

value

technology and large amounts of
capital
are
required.
Conse-

the

establishments

evident

of business undertaking industrial perhaps for this reason the aver-

repre¬

in the 79 United States controlled

group.

establishment and And
per
are much higher.

establishments

senting 39% of the establishments
in the group accounted for 45%
of the factory shipments and close
to 41%
of the employment.
In
the next largest group with em¬
ployment between 500 and .1,000
the ratio of the factory shipments

thsn

^or which in the long-run the rel- nadian development. In this kind employee
the most psrt fixed chsrges
_a^ceJerat?d, 9a: and,per
for
ativp
auve

be
of

investments in industry were only industrial proficiency.
^^elatiV?1i' ?ma11 pa^ °,f the
Statistical analysis of the forHaUnverted "kTthermo'rindus- eign-eontrol.led
a11. P°ints'

jng commodity producing indus- the development was a tovast new dustrialAnd in those
of
isted.
resource
which
be extorhnoWv

tries, manufacturing and mineral
production.

of

next

capital .went into: rail-: non-resident controlled concerns : controlled

being developed.

technology

industries it has been

group accounted for almost 52 %'■
of the factory shipments and 40%;

is

of

made

the

States

of

selling
neighbor¬

when

for

the

many

controlled

some
pro¬

smaller
firms

investment of less than

Volume 184

Number 5556

The Commercial and Financial
Chronicle

...

(489)
$1 million which
into the

more

taken

not

were

tries

precise study.

'

pattern that has just been
described was the general type
of pattern in most of the indus¬
trial

subdivisions

wise

another

made

of

for

which

made.

was

analysis

the

production

ments

with

$5,000,000
United

of

more

States

resident
have

45%

tions

Ca

establish¬

controlled

The

the

of

n a

of

data

show

in

d i

a n

invested

controlled

abroad.

of

in¬

vestment and of production iii a
small number of the larger non¬
resident controlled firms.

1953

by

of

the

in

and

while

these

control

are

this

of

As

or

owned by

result

a

industries

overall

unexpected. But the concentra¬
tion has likely been accentuated

the increased investment in these

over

half

of

owned

is

of

typical

and management. While
there are,
of course, Canadian

of

equity securities of Canadian

public

com¬

panies

ownership these occupy a rela¬
tively much less prominent place

possibility of strong business
through

management
link between

close

the

ownership and

known
of

feature

of

corporations

the

in

owned

well

a

decades.

abroad is higher.

great

Consequently

differences

in

there

the

large group
which

controlled

by

are

non¬

companies.

Investment

outlining
the'- variable
but
widespread extent of non¬
resident ownership
and control

been very marked in the larger
corporations in that country for

proportion controlled

of

""After

many thousands of share¬
holders. The latter tendency has
among

less

dispersal

Consequences of Foreign

United

States—the dispersal of ownership

corresponding

and

resident

ownership

the

wide

a

of the existence of the
of Canadian concerns

This large corporate element in
the ownership of Canadian indus¬

try contrasts sharply with

with

than in the United States because

man¬

agement.

con¬

now

ownership

in
the two countries
which must lead to
very different
relationships between ownership

largely takes
holdings by
concerns

of

companies

of

the

non-residents.

abroad

trations

13

subsifVaries. There is thus usually

including public utili-

1948

well

in

the proportion of all

dary products this is perhaps not

ties

industry

control

form of majority

the

in the

proportion of public utilities
trolled

Management

non-resident business

commodities have been underway

reached. 50% in
there have been reductions
including compa¬

than in 1926 but the

1953

control

Business

non-resident

Canadian
the

rising trends in the
industry
producing

in mind the relatively small Ca¬
nadian market for many secon¬

and

This

corresponding

non-resident

recently as 1948 the correspond¬
ing ratios were 43% and 40%. In
that intervening
period between

Having

Resulting

1926, 35% in the case of manufac¬
turing and 38% for mining. But

nies engaged in pertoleum refin¬
ing, while in mining including
petroleum
exploration and de¬
velopment it had risen to 57%. As

high

a

By

ratios

propor¬

manufacturing

had

industry

of non-resident control
postwar development is in¬

a

dicated

non¬

enterprises which

proportion

are

control

mining in

estab¬

concentration

trends

capital

Canadian

portions

and
increased

manufacturing,

above

'■■y

ownership

been

of

non-resident owned. The ex¬
tent to which these
rising pro¬
was

ex¬

of

lishments.

degree

y.■■

branches

of

good

are

212

in

was

processing

ing and persistent

been

factory shipments

or

clothing,
kinds

many

In overall terms the most
strik¬

this

1953

textiles,

and

amples.

Like¬

has

showing that in

which

beverages,
food

The

special analysis

of

of

Canadian
to

now

industry

observing

are

some

Continued

concen¬

we

of the

on

come
con-

page

22

,by the advantages which the nonfirms have in becoming

'resident

established and in subsequent de¬

velopment.
In

reviewing

tribution
trol

of

Canadian

will

we

the actual
ownership and

of

industry

dis-

General

;

con¬

here

V-

*'■*'

*'

only with some of
highlights
and
underlying

the

features.
which

New

detailed

V"1

'*■*

year

mmmmmmmm

' "

I

f"

statistics

not repeated here have

are

28th

Mills'

'

deal

recently been published in
ficial publication.1

brings

of¬

an

-

record

new

growth

Foreign Investment Direction
To begin with, while there are
significant
distinctions
between
.

non-resident ownership and con¬
trol, the two bases of classifying

investment

coincide

in

',

The fiscal

,.

way in many industries. And the
great growth in investments since
World
the

War II has

direct

which

was

marked by

new

GENERAL MILLS believes that
research is the

-

nom^residen^^. oYmership
with

But non-residents

it

still

control,

own

Highlights from the annual report

in:;

group

:

;

v

different

during the past

belbwi, If yoh^are interested ih the full story of *

\t

industry

'

-,fS!

-

record' growth;

T':new

the

investments in railways and util¬

The

opposite

we

b'v ""'!-v-,;

shall' gladly send you

the-

case
^

tiiring

where

value
than

In

manufac- -i

there is a, larger!
investments, controlled

of
is

owned

either

by

case

complete, illustrated report.; Just write

''•A.-

-■!'

y

to the- Department of Public.Helations.
-yyy

y

y--

of

the

<;

'

the

investments,

portfolio

)I:..,$K'-Vn!
-

•

1956

1955

GENERAL

Betty

y"

-

Total Sales

of

industry there

are

impor¬

now

tant non-resident controlled units

predominance

a

industries

some

these

of

and

Dividends Paid

there

growth

has

a
general
States con¬

trolled

proportion of most of the
industries in which non-resident

control

was

significant at the end

of

World

in

which non-resident

most

in

War.

II.

The

industries

control

there

complexity

in

is

considerable

the

large amounts
required. Accord¬

of capital are
ingly direct investments are most
important in Canada's industries

producing

standing
types
trical

durable

resource

control

And

industries

and

industries.

7,902,954

6,736,419

.

Net

:Vb:;

Cookie

Mix

Basic

Cookie

Mix

•

Oat-N-Honey

2.50

Chip
(Sugar)

in

of sales

•

2.7c

2.4c

5;68

5.02

rjrti*

»•,»•>>

--.per

share of

common

Taxes per

/.

SOYBEAN

'

stock

General

and

Mills

50%

hulled

stock

9.00

8.16

70,336,360

Soybean

General

share of

common

PRODUCTS

Mills

Land, buildings and

65,289,183

Protein

Oil

y
De-

Meal*.

Soybean Millfeed

/

equipment

FEED

PRODUCTS

Larro

SureMilk

SureBeef 50

Working capital

73,998,059

67,930,732

Keto-Kurb
Pre-Starter

Stockholders'

eq^ty

131,456,892

•

50

Larro

•

Larro SureMilk

•

Larro SurePoult

Larro SureStart

•

123,156,558
MECHANICAL

PRODUCTS

Autofab Short Run Assembly
Machine • Autofab Soldering
Machine

•

General Mills Radar

Tester

pulp

and
non-ferrous

mining,

the
SPONGE

O-Cel-O

General Mills, Inc.

O-Cel-O Plastifoam
•

Minneapolis

1,

PRODUCTS

Plastifoam

O-Cel-O

Bather

Car

Plastifoam

Minnesota

•

Washer

Soap Dish

Canadian controlled

industry. Canadian control

is still

CHEMICAL

general in many secondary indus-

Versamid 125

Position

Mix

irtr- X

vv>-

other

some

like

important exceptions to this
and the
primary iron and steel
industry may be one of the best

"Canada's

Cookie

Corn Bread Mix

two

are

1

'n'

Betty
Cookie

Chocolate

3.00

share

Earnings — per dollar

in

divided between resi¬
dents and non-residents. But there

a

•

•

per

is

examples of

Oat

Mix

Butter

INSTITUTIONAL

Out¬

.

these

of

chemicals,

products,

Peanut

12,383,500

automotive, elec¬
apparatus, and petroleum

paper,

metal

14,056,658

the

industries.

basic

goods

examples

are

Crocker

Cookie

Crocker

$513,651,149

productive

processes or where

basic

Betty

•

Honey

is

prominent tend to be those

which

Crocker Vanilla Cookie

Mix

>' '•. w

been

the United

in

';

Common Dividend Paid

proportions in others. In manufac-.

turing

■'

PRODUCTS

in

significant

■//? ' y1. ■#.

Mix

been
widely distributed indus¬
trially. As a result in most areas

with

-

$516>05i;804,

*

Earnings.

group
of companies
in
in the postwar years has

Canada

A-

•*;

The great growth which has oc¬
curred
in the non-resident con¬

trolled

MILLS

(CANADA) Ltd. PRODUCTS

i

be

whether" it

direct.

or

-

A'rjh^f-y-

-

most

produc¬
the, existence of

by

International

PRODUCTS

Series of Fatty

•

Acid Derivatives

Investment

1926-1954," Dominion Bureau of
v-

Statistics, Ottawa, 1956.
*r£.

i/Ar nr




-:

Betty Crocker Angel Fluff
Frosting Mix.
^ '•

spring from the claims

gained

>

Betty Crocker^

•

Chocolate Mtflt Cake Mix '• Betty
Crocker Peanut Delight Cake

-*•

to income from Canadian

tion

PRODUCTS

Betty Crocker Confetti Angel

Mix

important consequences of the in¬
vestments

: '.-A

: *t

'r+

Food-Cake Mix

.y

'A',*-*.' 'i-'VA 2^* ''Jlir"'.,:;

V-V

-

non-residents.,

some

\Vl "i i'".A.

Betty Crocker Date Bar Mix
•

.

lis

by

;V

a

-

f X/'V

GROCERY

;a
whole" than they control
chiefly because of their portfolio "

ities;

year:

''

'

2 '

;

V

}

■I't

i:

M.

j

I

X

'

.' <ry. ;xv//

!

-•••.

•

'• i

a:i

r

.

■ x.• <

:A A'
>

following

introduced

were

eight different divisions of The Company

appear

as

however, in Canadian

products

new

today's
success.

more

|

investments iri Canadian

key to tomorrow's

As evidence of this conviction, the

sales and earnings "brdke all' previous records.;.

mainly been in

investment

usually ^ carries

1955-56

achievements for General Mills'Inc> Both

broad

a

year

A

"A

'N"'-;.

f

,

»

,i

,

*'*

|S

.

The Commercial and Financial Chronicle
14

'

'•

«

r1'1

.

if:

.

t.

Thursday, August 2, 1956

...

(4C0)

decades, and will continue to
until it is replaced with

two

LETTER TO THE EDITOR:

do

■t'l

so

Public

gold-backed money.

Budget—And
Further Responsibilities

Our Balanced
Our

balanced budget implies country's financial notability and sound fiscal condition; in the
absence of dollar's return to Gold Standard. Urges Adminis¬
tration incorporate Gold Standard plank in its 1956 platform.
,

Chronicle;
^

the

For

lerable

cansi

■

.

past several years, as

know,

well

bility and sound fiscal

,

,

on

the

since

Deal

New

■

reliable

shall

foun¬

dation

the

of

est

have

never

And we

sound and hon-

a

gold standard.

restored to

Results

its value

achieved

to

ounce

date, however,
have

on

been

In

aging. Some of
our
Washing¬

chief

the

taken
Frederick G. Shull

position

that

to

go back

bal-

be convertible into

argument; for there would
to be no sound reason why

seem

tbe wri

at

U.

gold and silver

1870's,

Charters

very

;

was

About

tbe

back on

allowing time for the-country to

later address he said: This nation

condition itself for the change be-

on a gold basis .. . every do lar
°ur money is at par with gold,
Anon bein& notified oj his noTmotion to succeed himself, in 1904,

putting it into effect.
And in legislation presented to the
84th Congress, such as the Bridges
Gold-Standard Bill, S-1491, that
same wise provision is included—
the bill calling for an effective
date "one year after the passage
however

Now

had

been

if

even

the claim

merit to

anv

there

budget must be halanced
before we can return to the gold
that

standard

argument

longer be used;

fir

no

can

S r
P

the Adminis-

A current press report

budget.

Secretary

quotes

ing

that

announced

"a

as

hav-

balanced

budget, to which this Administration

has

M

been

pledged in the beginning, has now been achieved."
To
that
extent
these
monetary
leaders are to be congratulated,
But they can hardly be "congratulated" on the following portion of
their announcement, which reads:
"This means a great deal to the
people of this country, with such

become

financial stability and sound fiscal

with

conditions, the American people
can
go forward with
their con-

heln^ul

structive individual plans looking

WOuid
w ith

Lettor
better

iobsM
,obs.

Tt
It

to
to

u

thia
this

lattor
laUer

that' i"shouldbfike "To™
constructive
.

..

comments:
..

-

,

Tlie implication that we are now-

1

th^

deluep
e tte

rs^d

without

entirely

foundation;

for

n

we

a

promise.

Bush, who is
of

up

National

letters I have proposed.
as

were

a

part

of

our

monetary set-up from
down

1933

to

Fiously

observed

Secretaries
AJexander
man,

ard

mention

—

1792 right
principles reli-

of

by

such

great

the

Treasury as
Hamilton, John Sher-

Andrew

just

a

W. Mellon,

to

few; and principles




100

tion

as

few

people throughout this

na-

would

take

an

look

recent

If

honest

dollar,

trouble

to

to

return

of

in place of the
press
us

v

price around 24, the stock yields 5% and sells at 13 times
1956

earnings.

V

-

,

*'

u

Common Stock Record

1955

1953

34,000,000

.

23--21
25--21

1.12

1.32

\

1.08

.
.

23--18

32,000,000

1951
•

1950

"

1949

1.53

1.12

21--17

29,000,000

1

1952

<

1.56

i

Approximate Range

$1.20

$1.73

$40,000,000
36.000,000

1954_

/-'fr Paid

Earned

Revenue

Year

1.27

1.06

19- -17

26,000,000

1.67

1.06

24,000,000

1.48

~

22,000,000

;

1947
1946

1.36

18—16

.55

:

>19—15

:

17- -14

.57

-'A

•

'

1.75

1.40

19,000,000
18,000,000

....

1945

■

1.45

21,000,000

1948

:

1.75

.66

.80

'

v

'.'■"•J;

With West Fla. Sees.
(Special to The Financial Chronicle)

^

TALLAHASSEE, Fla.

r

staff

*
P

CITY

tLa

op Averlv

y'

1839

Curtis

West

of

Florida

Securities

Co

,

Inc.

Mass. — Edward M.
conducting a securities
business from offices at 151 Hallet
BOSTON,

Swartz

L
L
Eon^er

Joins Tbenebe Co.

With Allied Inv. Co.

L
Com

ATLANTA, Ga.—Grady Hutchi¬
son
has been added to the staff
of

Broadwav

-

(Special to The Financial

(Special to The Financial Chronicle)

Rav-

Allied

Company,

Investment

is

Street.

Eppler

Calif

Broadway.

(Special to The Financial Chronicle)
,

Penton has been added to the staff

(Special to The Financial Chronicle)-

REDWOOD

—

E. M. Swa^-tz Opens

.
.

Chronicle)

Conn. —Ida
E.
Bregman has joined the staff of
Chas. E. Thenebe & Associates, 36
HARTFORD,

Pearl Street.

Walton Building.
*

the

forward

dishonest printing
which has cursed

With Averly L.

is

write Senator Bush, as indicated,
it is highly probable that we can

again

earnings for the calendar year 1956 are estimated at $1.85. At the

E. Hackett is now affiliated with

I

tuples

^

.

.

Pl'at-

strongly urge
the chief target for the

The
T

the 12 months ended April 30 were $1.91 as
compared with $1.73 for the calendar year 1955. Allowing for the
dilution of about 12% resulting from the recent stock offering,

/

-

Senator*

for re-election

the

Committee,

that he be

Since

at ignores the basic financial pnn-

that

ere

(Special to The Financial Chronicle)

LOS ANGELES, Calif.—Charles

out

carry

such

form

is

^ g11 ha t ^h

1964.

'

'

.

Peachtree

gold-standard

Chairman

conditions"

Artmfnict^ttfnn

em a n

1,

to Nov.

up

/

X A. Hoqle Adds

wL?^hf rinJ
mprilln ninnio

it

*

by bank loans.
Earnings for

estimated

plank in its J-A. Hogie & Co., 507 West Sixth
"56 platform; and A this time. Street,
shall expect them to
b

and

fiscal

A

thp

0,fLS
it ^h'p

operating with "financial stability
sound

noti™oi

\

generating plants

expects to 'spend about $15 million for construc¬
Following recent sale \
of 270,0CO shares of common stock at 23 V4, the company estimates ;
that it will require about $11.3 million additional funds
(in
addition to $15.4 million expected to be available from internal
sources) in order to meet construction expenditures for 1956-7.
Presumably this will be raised by sale of senior securities or

Lee stated plans for adding

,

for

gas

The company

of ab-.

Well, "the Republican party is
dlscussed at
in power" but not one dollar of ® meeting of the Board of Govour currency is "at par with gold" prnoFS m Detroit, Oct. 4-6.
; :
(except insofar as our dealings
Two With King Merritt
with foreign banks and countries
are concerned).
But, in its 1952
(Special to The Financial Chronicle)
platform, the Republican party
ATT AWTA
n
T
ATLANTA, Ga.
promised to restore our currency Van^n
to "a dollar on a fully convertible
conn^rfpH
m^G
gold basis"—which plank has been ritt
Co
T
ignored by the Administration as Northeast'
St.,
though it had never existed,

use

tion this year and $14 million next year.

WP States i
^r-°TrdlPS-r"^rried, lives

™

customers

attempting to arrange for additional reserves which would become
available to aid in meeting its requirements in the years sub¬
sequent to 1964."

rality and m Wantagh L. I, N. Y.

»

and

Humparey

Budget Director Brundage

*

was on leave

residential

of

"Upon expiration of its contract with the Hugoton Production
Company, the company, pursuant to the terms thereof, has first')
call upon the gas then available from acreage dedicated to it'
subject to prior ontion held by Panhandle Eastern Pipe Line
Company. After 1964, the unused portion of the other present
reserves will be available to the company and it is continuously

St.<£kfhExchan^ fr°7
19f° ;
with the exception of 1943 to early

certain minmg centers, 1946 when he

®Fd as

tration has succeeded in balancing
its

.

are derived from residential
commercial, 20% industrial and 11%

revenues

are

97%

prospectus states:

Republican party is in power the in addition to retaining his former
gold standard is settled, not as a title, effective Aug. 1. Mr. Ording :
maj.ter of temP°rary political ex- was on the staff of the New York

that the

electric

certain

of

Theodore Roosevelt used these
words: We know what we mean
■"*[ 5F we sPea* P* an honest and the staff as Assistant Treasurer
stokle currency. So long as the since 1951, will become Secretary

of the act."

gas

20%

About

According to the prospectus issued in connection with the
common stock, Ralph E. Davis, independent engi¬
neer, has estimated presently-controlled proven gas reserves avails
able to the company at 830 billion cf.
He has estimated that
adequate supplies will be available to meet estimated requirements
of 600 billion cf. to serve future markets and the boiler fuel needs

,jy practiced law in Nebraska and
later in California. During World
War II he served in the United
states Navy and saw active duty
|n tbe Paciifc Theatre. He left the
Service as a Lieutefiant 'Commander and became associated
with Rogers, Hoge & Hills, attorneys, in New York prior to be¬
coming a member of the • ASEF
statf. Mr. Charters resides with
his wife and two children in
Syosset, L. I., N. Y.
James H. Ording, a member of

fore actually

of

recent issue of

Nebraska in 1933 and subsequent-

immediately—

would be

we

standard

gold

for, as in the past, there would be
a
reasonable time-lag % between
passage of the act and its effective

residential and rural, 30%

Cities Service Company.

.

Roosevelt, in various addresses,
voiced the following sentiments
in favor.°
®ound anc* honest
money:
An honest currency is
strongest symbol and expresdate. For example, the "Resump- sion of honest business life.} . . . A
lion Act of 1875" carried the ef- permanent system of assured honiectlve date of Jan. 1, 1879—thus fsy ls.j e
essential.
In a
that

mean

and

space-heating requirements—a very high saturation. Natural gas
is purchased from Hugoton Production, Northern Natural Gas and

jan>

.

49%

miscellaneous.

to the gold standard on

currency

about 43 %

and 1

17 %

while

customers

Association. Mr. Charters, a mem1879, thus closing out the ber of the Nebraska Bar and New
withstanding.
Greenback era of Civil War days, York Bar, has been Secretary of
That fallacious view overlooks
the Association since 1948 and aiso*
the fact that passage of
goldhis occupancy of the General Counsel ^since 1951. He
standard, bill, today, would not White House, President Theodore graduated from the University of
all

are

de- 'i,

include flour milling, alfalfa

area

of 1955 was 14%.

of the "Resumotion nounced. He will also retain his
wbich restored our title as General Counsel for the

rbief sp0nsor
Act
lg75 »

dollars
arguments to the contrary not-

dishonest printingi press

And

holder."

the

of

John Sherman, in the

budget can t be balanced m
terms of honestdollars, instead oi

a

Senate:

S.

notes, to be safe, must

bank

anced.: That; appears to be a very

the

in

w|sdom

Qf

Michael

R.

did

he

with

increase and personal income

industrial and 10 % miscellaneous.
Electric
properties are fully interconnected with the exception of the
Parsons service area, which contributes only about 3% of electric
revenues (it buys power from Kansas Gas & Electric Company).
The company generates almost all of its electricity at 14 electric
generating stations (ten of which are small) with a total nameplate capacity of 340,000 kw. A 90,000 kw. additional unit at
Tecumseh is scheduled for completion a year from now. Kw.- pro¬
duction cost is low at 3.7 mills* presumably due to use of natural
gas as boiler fuel. The reserve of generating capacity at the end.

mixed emotions after 10 interesting and pleasant years' but felt he
would like to enter another phase
of the securities industry. His future plans are not yet determined
but we wish him the very best of
fortune in any new undertaking."
K. Michael Charters will succeed him as Executive Director,
effective Aug. 1, Mr. Lee an-

Daniel Webster voiced these

gold standard until

ine

the Federal budget has been
weak

so

In 1834,
words

both gold and silver.

of

can't

we

currency

our

system, initiated the dollar on a
specie basis, with its value firmly
fixed in terms of specific weights

people

have

of

Putnam

stated

the

on

in the

revenues

commercial,

his

resignation,
Mr.

architect

Electric

"inpre-

Hamilton,

Alexander

1792,

Industrial activities

since

sent'ing

is as

statement

my

follows:

ately encour¬

ton

for

has been

hydrating, mining, refineries, storage batteries, tires, iron
steel, chemical, meat packing, clothing, aircraft assembly
railway equipment.

Mr. Lee

1951.

demand, is reinstated. Ample

premise

only moder¬

ofticer

firmly fixed at $35 a fine
of gold, and redeemability,

territory served includes large areas devoted to wheat

industrialization

staff

senior

•

derived from industry how exceeds that derived from agriculture.

and

sinf.e

until the dollar is
the gold standard, with

Power & Light, with annual revenues of

and other farm products, oil and gas production and transmission,
cattle and poultry raising and dairying. However, in recent years

staff

sociation

currency

The

.

3^

a member 0f the As-

oit

us

effective

Detm

...

,

the gold standard in 1933.

Direc-

Putnamhas

conditions"

took

the sound and

Exe-

as

"uave

upon

.,

nation back

nam

t o r,
ju}v

interest

public

developing
in
2et..in2
in getting this
this

President of the

Association of Stock
Exchange
Firms has announced with regret
the resignation of Henry W. Put-

,

the opinions of
those great Americans, the United
states has not had "financial staBased

ure

effort to-

and

time

ward

.

Company

$42 million,
series electricity and gas in the northeastern and central portions
of Kansas, the service area comprising about one-third of the
State. The population provided witn one or more services exceeds
650,000, of which about 30% live on farms and in rural areas. In
addition to its electric and gas business, the company}/supplies
steam heating service in Topeka and motor bus passenger Service
in Emporia. Revenues from sale of electricity approximate 68%
of revenues and natural gas 31.5%, with miscellaneous operations
contributing 5%.
Kansas

Of S. E. Firms ftss'n
''James J. Lee,

Roosevelt, and others of like stat-

have devoted

I

Kansas Power & Light

strongly emphasized by such outstanding statemen as Darnel Webster, Andrew D, White, Theodore

Editor, Commercial and Financial

you

.

.

Utility Securities
By OWEN ELY

J Charters Exec. Dir.

Reader denies that currently

I

FREDERICK G. SHULL

Chapel Street,
New Haven 15, Conn. ;
2009

for

currency

the

phst

Forms
LOS

Whitney In v. Co.

ANGELES, Calif.—Melvin
Whitney is engaging in a seeurities business from offices at 607
,

South Hill Street under the firm
of Whitney Investment Co.

name

.

With Putnam & Co., *

Co.

With Hincks

(Special to The Financial

(Special to The Financial Chronicle)

NEW

HAVEN, Conn.—Albert B.
Pellegrino is now with Hincks
Bros.
Street.

&

Co.,
*'

Inc., .157
^

Church

Chronicle)

HARTFORD, Conn.—William E..
and Richard Gibbons have

Kane

become affiliated
Cr\

R

Central

with Putnam &

Row.

Volume 184
V

Number 5556

/ u

_

'»

...

I

The Commercial and Financial Chronicle
■"»' n f>»

:i|

t f)

"i

(401)

r

r *

Lunt Chairman of

Pressing City Problems and Taxes

Securities Salesman's Corner

By ROGER W. BABSON

.-

"

'

j.

/,

:
'

;

(

-

v.."'

■># V

i*

Traffic congestion, private and municipal real

•/;f

By JOHN DUTTON

'

•.

.

•*

i',

-

„'

*

Might,

estate

'

v

Samuel

V

Hamlin

and growing array

of competing municipal expenditures—all
entailing seriously increasing economic costs—are pointed out

Fundamentals of Security
Salesmanship
ARTICLE VI

.

Short-term

t

—How To Read And Study—

During

the

past

five

have written articles

/

too

weeks

1

"What to

on

developments

important—long

opments

are

recognize
effect to

when

devel¬

range

difficult

more

you

•The. Conference

to

to read with
Read" in order to become a com¬
petent security salesman and ad¬ ; an eye for CAUSE AND EFFECT. S
visor. There are more articles on >}
Use What You Have Read. Make

that subject to come but this week
let < us iuitirto •
rather than the "What."

Here

are

rules for time saving and for

my

pencil. Since I am
of a sub¬
ject I look for topic heads and I
a

looking for the "meat"

underscore the pertinent facts. I
make mental notes of the impor¬
tant things in my daily paper, rhy
news

reports, and I underscore as
I eliminate the unes¬

I go along.

sential.

Every

column such
around

news item, every
this, every factual

as

that

report

read

you

central

a

is

fact

built

and

the

modifying facts.

I look for these

facts

no

and

waste

time

on

in¬

essentials.
*

Concentrate.

hard

and

Learn

intensely.

read

to

Let

nothing

through your mind but the sub¬
ject at hand. Develop the ability
to put all your thought power into
go

what

you are doing at the mo¬
You can do this to the ex¬

ment.

tent

that

TAIN
even

you

what

read

can

RE¬

and

wish

you

to

retain

under the most trying con¬

ditions. You

train,

read in

can

crowded

a

subway, and when there

a

is noise and confusion if you will

practice doing i this,
Find

J

vr

-

■

time to Read. Some peo¬
ple like to rise early and read
before breakfast* It is a good
way
a

to start the day.

the

One-half hour in

morning when

refreshed

sleep

from

will

You

of

out

:

and

•

are

good.

Your firm

is

ficult

You have,

lems.

it.

over

~

periods

times

of

study and read¬

than

the

during
other
when you are

day

somewhat let down physically, or

when you must read under pres¬
sure.

personally find that I can ac¬
complish a great deal of work
when

I

retire

at night./ I have a
comfortable double pillow behind

Don't hit the

highlights. Take it with you and
study it word by word. Read how.
the financing was put
together,
study the past history, read the
financial

statements

accounts.

pick out
the

and

For

Go to your manuals and
other companies in

Roger W. Babson

some

industry.

good
years

now,
I have
be en";telling

.

'

same

a

many

t.

Compare this

red

crayon

black lead.
notes.
out

As I go along I make

Many

from

end writes
and the other
one

idea

good

a

this

extra hour

comes

or

more

at night before I retire that can
be used the next day.
Early morn¬

ing

reading and reading
retiring are my favorites.
,

Learn

to

Connect

before

Events.

You

read
a

about soil conservation and
few days later an article
appears

suggesting that sales of fertilizers
farm equipment may be ad¬
versely affected. A logical devel¬

and

opment is it not?
effect

will

prices

of

this

farm

have?

Do

and

Do

like

you

work at it.

it?

Is

it

a

cents of every bus fare which you

/Jr

*-'■ '*>.*

I

Downtown

.V

■

-'-'J

*

/<

stocks

What
week

two?

or

in your

mind.

equipments
there

terest

a

rate

any

during
Make

a

note

of

Possibly the farm

already
developments.
reduction

on

it

trade

Does this indicate

a

in

dis¬

the

in¬

acceptances?
change in the

policy of the Federal Reserve?
Do
long-term government bond
prices
reflect
any
forthcoming
change? Is this the first straw in
the

wind

credit

regarding a change in
policy
of
the
Reserve

Everything
way

or

that

happens

another

is

when

to

other facets

of the economic and
financial picture. It is a cumula¬
tive chain of events.
Watch how
the effects of change take place.




to

the

alone
the

put

can

our

cities

and

'

Colleges,

t i

Liberal

organiza-

z

an

of

o n '

non

tax

-

ported

23
sup¬

1

c o

-

leges and uni-;
sities '

v e r

New

Lunt's

/

nounced

on

in.

Yo

state.

k

r

Samuel

appointment i wa
by Dr. M. Ellis
of

board

President

and

University.

to

D.

Lunt

Mr.

•

Chairman

path which will lead to true

bribe

Indepen¬

dent

progress; but what are the chances
for such economies? For
politicians
to

Em¬

-

Arts

them

back

the

of

harder

pull

o

the

an¬

s

Drake,

Foundation,

of

Alfred

•//',//:..: u./<'/•

•

■£;>.

/

.

The

they

to

business

of

to-deciding what
sell and what
they

to offer.

care

I

am

the

matter

attractive offerings,.
I

am,
there is

of
r

in

shorter

a

a

selecting

urban communities.
cities, entire streets
permitted to fall into
shocking state of disrepair. This
too

El

many

been

is

often

dangerous

to

life and limb, and also creates fire,
hazards.
'
\■;

-J".'-ri* /v

Some

of

palities
street

limping

are

obsolete

proudest munici¬

our

residential

lighting.

and" athletic

fields

are

Even

„

•

ali-too-

city

SAN

FRANCISCO,

Waldron

time

of

reading
and study
rght in the best labo¬
ratory of all—his own desk.
/
.

MORE NEXT WEEK

The

•

announces

Bacbe

&

New York

Co.,
Stock

members

Calif.—

Co., Russ Building,
the incorporation of the

firm and the election of
Kessler

Maury J.

/

Increase

When taxes

of

and

Francis X. Martinez

/

Martinez

has

with

clear Fund.

recently

Science

and

Prior thereto he

been
Nu¬
was

•

personal

of

the

Exchange, have

property

broached

in

the

basis

the

first with Albert Frank-Guenther Law,

were

United

States

as

Inc."

of

municipal revenue,
announced that OUver B.
Stone tax dollars were spent chiefly on
has
become associated with the
To Form Zimmerman Co.
streets,
street
lighting,
parks,
firm as a registered
representa¬ athletic fields, and buildings for
Zimmerman & Co., members of
tive in their mid-town office at the
proper transaction of public
the New York
Stock Exchange,
724 Fifth
Avenue, New York City. business. In more recent years
The Fifth Avrnue
office, which demand for public-welfare proj¬ will be formed as of Aug. 9 with
was
recently opened by Bache & ects financed by city government offices at 63 Wall Street. Part¬
Co., has in addition to a securities is becoming more insistent. Funds
ners will be William G. Zimmer¬

brokerage

pany's
which

the

department, the

Mutual

Funds

com¬

Branch

formerly located
Chrysler Building.
was

in

for

their

being
older

Opens

.

David L. Stern has formed D. L.
Stern

Agency with offices at 295

at

now

of

basic

cities, protective
being cut. Even fire
alarm systems are not being ade¬
quately maintained
I

do

tirely

not

for

befallen

blame

the

who

man

will

acquire

the

Ex¬

change membership, general part¬
ner,

and Charles M. Miller limited

them.

I

the

receive nearly so

well

governments

partner.

cities

which
realize

that

today do not
largq a share of

($100

from

the

bank

of

construction

The

sale

c*

loans pre¬

new

part o2

a

requirements.

first

preferred

stock

will rank equally with the previ¬

ously

first pre¬
ferred stock, v/ith respect to divi¬
dends and liquidation rights.
El

issued

Natural

Paso

ates

an

kets

in

series

of

Gas

extensive

Co.

oper¬

natural

ga'J
transmission system serving mar¬

California,

Texas,

New
At

Mexico, Arizona and Nevada.
Dec.

1955, the company's sys¬

31,

included

tem

and'

6,419 miles of maixi

branch

transmission

lines.

The

delivery capacity of the com¬
pany's
main
transmission
pip«5
lines is about 1,888 million cubic

feet

of natural

company
an

gas

expansion

program

expenditures of
■000,000

per

day.

The

is presently engaged in

and

is

more

involving

than $196,-

planning

expenditures / of

further

approximately

$85,000,000 for the next phases oi
expansion.
32

months ended April

30, 1956 the company and its sub¬

Cecil Griffen

en¬

have

reduction

For the

extended.

or

evils

to engage

securities business.

more

some

local

a

are

expense

are

Madison Avenue, New York City,

in

the

sometimes

services. In
services

D. L. Stern

maintenance

voted
and

5.50%

preferred shares will be
by the company toward

new

applied

its

Mr.

estate

the

proceeds

viously incurred to meet

Pub. Relations Office/

Taxes

real

on

Co.

stock

.

Net

the

president.

as

associated

With Bache & Co.

Gas

preferred

value) at a price of $100 per
share, plus accrued dividends.

&

hails,
which should be the focal point of
community pride as well as of
PHILADELPHIA, Pa. —Francis
community activity, are often in¬ X. Martinez has opened offices in
adequate as to capacity and down- the Land Title
Building to con¬
at-the-heel in appearance.
duct a
public relations business.

investment

Natural

par

with

parks

Paso

cumulative

Maury J. Kessler ;

.

business

Run-down

sights.

common

along
and

i

of

the

condition

of

Skid-

White, Weld & Co. is manager
an
investment banking syndi¬
cate
which
yesterday -(Aug.f 1)
ottered publicly 250,000 shares c?

dream.

our

a

r

period

course

College;

Gas Preferred Slock '

the

many' of
have

thorough reading of the offering
prospectus, is certainly going to
man

of

fulfillment

Yet, as I travel
country, I am often
at the shabbiness of so

In

his offerings on the basis
comparative analysis, and
a

through such

the

appalled

studies

qualified

country are centers
and commerce which

to

around

; no
better way to learn
by doing, and any salesman
starting out in this business who

a

our

American

acceot-.

however, convinced that

become

of

power

testify

than

of

Lawrence

College; Union College; Vas¬
sal College; Wagner
College; and
Wells College.

more

While, Weld Group

cities

securities

comes

to

Sarah

Kessler President

Offers El Paso Nal.

experienced

wish

comes

Incorporates

>

-

spent many

the

it

do not

in

related

for

governments
to
funds. So the cities

grants-in-aid

t

funds

pire
State
Found ation

and
private property to
•deteriorate too rapidly. The great

Banks?

one

State

Cecil

Griffen,

npember

sidiaries had

of the

New York Stock Exchange, passed
away

on

July 24,

-

57

-

1

.

Blights

more

their

in

years

Area

who. have

of

the

change?
the next

needed

has

industrial

public

advocating that neo¬
phyte salesmen displace the judg¬
ment

stocks

have

counted such

-Is

show

happens

run

Exchange,

state

for.

A second urgent problem of our
cities is the tendency for in-city

not

am

react to this news, and do the fer¬

tilizer

to

the

1956

raise

local

Waldron

stock?

But how much

equipment

costs

government,

Stock

named

■

head,"' a good reading lamp, ing the fact that .well .managed
a handy night table with
investment firms are fully aware
my
the responsibility- that
books,
periodicals,
pencils
and of
they
their
clients
writing pads handy.
when
I like a have to
it
pencil;

raise

it

more

for

York

buy, votes with
campaign for the Empire
offering with other stocks in the .my
friends
and
readers
that dollar
bills is
now
illegal; but State' Foundation will begin on
same
category as to ratio of price heavy
traffic
and
insufficient these same
politicians are free to Oct. 15 under Mr. Lunt's direction.
to current
earnings, price to book, parking spaces are choking our "bribe" voters
by promising more He4 will be assisted by a state¬
dollar of sales per
share, growth cities to economic death.
aid
the
to
of
industrial
unemployed, to the wide;^ committee
past five years,.and ten years, .of
Traffic congestion is hastening aged, to mothers and others. Much leaders who will help in raising
book value, of earnings
per share, the exodus of
the
business enterprise of
legislation to "protect" funds to meet the $500,000 goal set
leverage position of stock (ratio
from- our large cities. But even plumbers, < carpenters,
painters, for 1956-57. M \
of common
■/,
V'
stock, preferred, bonds, more
is
important, heavy/traffic is and V even i. barbers
merely
The following colleges and uniother debt) net
quick, and record
slowing down our whole economy bribery to get the votes of these sersities are members of the Em¬
of stock market-wise.
After you
and limiting our Gross National groups. It is supposed to be en¬
have completed this
pire
State
Foundation:
Alfred
study, try and Product. Millions of
productive acted to protect the public; but University; Bard
determine what there -is behind
College; Barnard
hpurs are lost because of traffic the public should be made to pay
the figures in the
College;
Colgate
University;
particular offer¬ snarls. In
Chicago, to cite but one directly for such "protection." No D'Youville College; Elmira Col¬
ing your firm is making- that
example which could be multi¬ portion of such increased costs for lege; Hamilton
College; Hartwick
might make it attractive to in¬
plied .by thousands,, busses were inspectors and others should be College;
Hobart
and
William.
vestors. Are there new
products; stationary a few years ago only added to taxes. If this welfare
Smith
will the new
Colleges; Houghton Col¬
financing be helpful 10% of their
trip time. Today, work continues to increase, more lege; Keuka College; Manhattanin reducing
operating costs; what
owingtoi^ more- ufrequent and city sales taxes are inevitable.
r
ville College; Nazareth College:
is the capital to
provide;'better
longer .traffic delays, these busses
College of New Rochelle; Russell
tools,, exploitation of markets,1 a are
stationary 40% of their trip
Sage College; St. Lawrence Uni¬
new
plant, expansion? Battle it time. This is one
important reason
versity;. College of Saint Rose;
out yourself. Would
you buy this for the need of
higher fares. Five

my

double end

is

Lunt,
partner
of
Lunt, members of the

campaign

before

feeling

vv look increasingly to Federal and

traffic.

income

and

with

as

are

■

superiors

I

it

course,

■

ing

Cities

most

mind is good value comparatively? Is this
pay ..is necessary because of un¬
good night's a time to invest in this particular
regulated automobile congestion.
Be your own analyst
you to retain industry?
xkStfJA'i '/
1 '■

a

dollars

II.

pressing

your

enable

from your

more

"

'

through. I forecast that such a
policy will prove to be very short¬
problem of sighted.
"
*
cities, and es¬
Increased central municipal
pecially of our control or
inspection encourages
larger metro¬ waste and
results
in
a
heavier
politan.;, cen¬ over-all
city tax load. Economy
ters is

prospectus given to you. Here is
your chance to learn
by doing.
Don't skim

*

t h e/

a

,

The

national

prob¬

:Of-

participating

underwriting.

an,

tax.

dif¬

very

~

D.

&

cnairman
the

tax

War

">■'

:

New
been

keenly the adverse effects of our
sharply graduated Federal income

facing
peculiar

some

work.

your

total

our

World

are now

studying the analysis of
corporation statements, well and
in

concentration.
Tread with

laboratory

a

Governors,

received

Learn

cause.

of

meeting at Atlantic City recently,
a
special report on the
plight of American cities, which

relating

are

hy noted head of Babson Park.

./

>

not

are

/

College Fund Drive

:

•
1"*

•

15
/

-

ing

revenues

consolidated

510,243.

consolidated operat¬
of
net

$196,353,322 and
income

of $22,-

The Commercial and Financial Chronicle
36

^.Thursday, August 2,1956

(492)
X:

with Nashville;* LETTER TO the editor:
St.- Louis

of its merger

Chattanooga fand

Stocks

under

decision

break out of the 510-515 area

least

a

is

of

industrial

the

average

estimated

been

*

♦

term

previous

the

although

appreciation,

benefits

the

Chronicle:

"galloping," is

or

an

economic disease.

into the noted

creeps

Professor's

condition of prograther than economic dis-

discussion, as

; t

;

recently expressed
level. Maintains inflation,

a

195g^ discusses a "creeping, not inflation and monetary inflation,
galloping," continuance of infla- The impact -of various kinds: of
tion, under what appears * to be inflation? on even a - ."planned"
»planned economy" that has been economy . does not bespeak of
variously described as superior to singular results, but diversified
free enterprise supply and >de- results. These diversified results
mand ^economies that has im--defy a "planned economy" except
posed self-discipline to prevent or lP step up inflationary processes,
correct excesses in the economy; while free enterprise supply and
'■

*

,

had

has

,a
life,

rather mundane market

IMay: decline and boost prices years to come. Not only is the
on
average
back Uo April present vehicle population far
levels in position to try for a ahead of the road situation
new high on any show of sus¬
hut there is nothing to indiDUl
mere
lb
IlUUUHg
IIIUI
ic

at some

.

Westmghouse

for

rtr.lv

nromise

"creeping"

Editor, Commercial and Financial

r<nmpl»hrk tat Westimriiouse?

highway construction pro-

high, but it did wipe out the ornrn<?

the functioning of the price

The speech of Dr. Sumner H. ress,
$3,000,000, with a benefit to
profits of some t hing ap- Slichter, made at the University easier Thus, we again overlook
proaching a dollar a share on of Wisconsin on July 3, 1956 and there are many kinds of inflation,
f o N &
reported in your issue of July 12, the most important, commodity

to willing to settle for a near- D. oMx.

with the

on

whether

economies have

Operating

*

views

^

for the rather protracted peri¬
Road building stocks have
od of three weeks.. There was been anything but prominent,
little disposition on the part Prnfit-takprs are app
annarentlv
rroiu idKers
are
y

p rocee d speedily
task of testing the

Reader takes issue with Sumner Siichter's

although no unlikely that the plan will
expected for at reach a'head before next year,

year.

which has stalled the advance

Economy and Inflation

ponderous way of regulating
authorities,
is considered

study,

worked up
enough strength this week to
finally

the

In

Commission.

merce

WALLACE STREETE

By

Professor Slichter, Planned

which; now; has to be settled
by the full Interstate Com¬

YOU

THE MARKET... AND

d

play

temporary

P J

"ff • Leine 1
indicated that % the. company
j
.
,
,

...

,

tained strength.

■A
v

j Metal shares were the lead¬
the list finally,

ers as

chewed

the opposition in the resis¬
tance leyeb'Strengthwas gen¬ highway work, expansion m
eral among the non-ferrous other lines that require extenand steel shares alike, some¬ sive road machinery is proup

"cmies" will have all the surprises,
without the corrective forces of
/ . .
free enterprise, for results are what
rtoorJir.fr
far nnlv a Struggling • to ' fill
pipelines
Secondly, it is also to bemoted on* expects, but we always reap
what clouding the implications
of any situation,
few ISfhFiccnocinihahiah- depleted by its strike earlier that the term, "planned economy* consequences
of the issues in the hlgn
of' whether or not it was a
Thp stork's earning
with the variations of price level, economic or otherwise.
. .
likp-manv other

Regulate the "price level" is sig-

an-

yentories.like many^Otner ap -nificant of free enterprise
phance , makers and is sun pianned economy.

and not

artPPrt

w

.

machinery category have ™isy<eaivIJie sto3KS earning.. monetary conditions that have <;What is not discussed by Dr.
the steel mills will be reopen¬ shown any definite favorit- a?e bound,to suiter tills yoai, defied Keynes and his adherents,;Slichter and many other outstand¬
ing
snrh as Patrrnillar which but the dividend
seems rea- should be called "planned econ- |hg economists is how, when and
ing shortly after their one
vrrtr'wi dnwn tn 1p« than a sonably secure and the back- ;omies" just as free enterprise sup- in^
worked down to less than a
J
month strike shutdown,
considerably Ply and demand markets in their debt of some $275 billion will be
2% yield while others in the io8 haS built up cons deraD y
bbi
and flow. may not be paid off and amortized, and the
v
singularly referred to, and pre- impact of payment or non-paygroup, such as Bucyrus-Erie, ahead
year.
sumed
to exist
in the singular ™ent under the Keynes theory
A couple of flaws spoiled
that we owe it to ourselves on
Gardner-Denver and Worthsense.
the picture a bit. For one,
ington were selling at a yield
Motors shares, despite some
th
„
variable annuities,*for instance
strength was highly selective. of 4% to as much 5%.
rather widespread expecta- galloping in the present and *u»!V
RICHARD SPITZ
For another, the rails showed
flivrtrcifvirnr to p
fftmnanips
tions that they would begin ;ture course of inflation as de- Fortune's Rocks,
little inclination to take over
iiiversiiying
to move in anticipation of the- scribed
by
Professor Slichter; j Biddeford, Maine, r
.
leadership, although they
Bucyrus-Erie, in fact, has introduction of. new models, again a singular word, inflation,
July 20, 1956.
were the 'first to respond to
one
of the more diversified continue to loll around, al",<<
7" 7
~
*
7~7 ; : .. ,
"
'
"
celebration over the fact

that

way

^ mann!Lt!fl-fiI-ge natj?nal

of that of last

the steel strike with dour ac¬
tion

their carloadings

as

dropped off and workers were
furloughed. • : '
1

Pressure

Oils Lifted

on

ing and public works inachin .

in.

tor

j One rather definite' devel-;

•

aust
line, is also an important fac¬

>

;

gftgx?rak'SjeS
'

to

air-conditioning

the

Bache t Co. Predicts Nalioa's Business
' *■
in Second U

Although, all .indications point
an
upward move by, business

^"Opposed to these weaknesses,"
it noted, "has., been' surprising

Considerable searching was during the. final six ; months., of strength in certain sectors of the
Oils 4956, the stockmarket, in the near economy: First, a strong upsurge
term, is ."likely to; move;.In a in, the'capital expenditures of
WAin
• d&
. ^U1V- ^ i
j
trading range pending appraisal business from $28.7 billion in 1955
&eneraAv considered as lag-; of the impact of a new steel wage to a projected $34.9 billion? in
ging behind : the others that settlement," Bache & Co.^ mem*, 1956. ' This affects the ^capital
have already gotten a bit of bers of the New York Stock Ex- goods industries which, are basic
;J»ve.r^^^S'Schange, 36 Wall Street, N. Y. 5, in the economy. Second, the high
ne c
:■ J? ~■■ rvf
J N. Y., stated in their summer edi- volume of industrial and commerholding reserves which at tibn of "The Bache Selected List." cial construction which has largely
even modest appraisal exceedv> On the-basis of such factors as offset the decline in the rate of
chteeTv at nreserd but mere the going market pfice of the?v^t.Equipment in 1956 and irr the residential level of consumer mcmnery ai present out there:
»
«»
rtrtnciJoroklo
;ari^ projected outlays .for-plant the higher construction. • Third,
are some indications that the ;.smcKjJ)y :a cons ae aoie rmd, ^n^xt^few ;years| ,fhe" continued
stallment credit which has been
firm could double this rather Sm; v ^-be company; possibly 'business boom in Western Europe recorded despite the drop in outthrt

i jpij

nnmnanipc

nnt

^
opment, was at least the tern-1
primarily cone erned with
porary end of pressure on the
their
highway products at
international oils as a result
present are expected to jump
of the new unrest generated
Tntrt thrt firtld nnfP fha road
;.
by nationalization of the Suez
building program starts to get
Canal. The pressure on these,
under way. Poor & Co., for
oils for a couple of sessions,
instance only vcredits around
however, was mitigated by an
frturfVi' rtf cnlrtc trt mad mn,

.

-

bein£-done for backward

-

,

....

.

,

-Aw

.

q

active

demand

domestic

issues

for

'selected

not

•

involved

AAA'A

in the dispute.:

mar.

_

readily.

;A

that

had
good
well as;

combination
both

merit

from

its

operating results as
its oil appeal was Northern
Pacific Railway which was
able

boost

to

income

moder¬

able to give a
rebound
ieuuunu,

widely

good account of

ir.

tltpmcplvpc

but
uui

thrt-

still
sliii

are

die

favored

marlrpt'c

rather
idinei

a

group

as

ac(luisifion two y^arS ago haif of the

year, "we anticipate these opposing forces to date has
Champlin 7 Refining ' Co. that business will surge upward been the maintenance of a high
which since has had its capac- ^,rir\g th® final half of 1956 with leyeL.oi business activity generi«rtrrtacer3"enrrib A()c/
Tn!the American economy resuming ally with employment and proJ,.;.
^
y
.
'°*
its upward secular growth trend," duction figures plateaued virtually
addition;tO its producing area the investment firm said.
"■ .. at peak levels." - 4

of

,

ately for the first half of the that could continue to forge
year with projections indicat¬ ahead
along with the rest of of some
ing about $4 a share for the tbrt crrnwth sitnatinns Ontnnt company
issue for the ful year.

level it would be

At that
of

case

a

a

is

running

at record ievels
peak expected for

However it added the stock Investors, therefore,- may be
pull will easily mislead by a cursory study

"0,000. acres the
also

holds

better ma^k^v over tbe. short

while°the

an amoitious oiruixng. steel wage settlement on;the-econ- ation emphasizes the need for
market price of a modest 10the entire vear vet expansion Pr°g£ani
1S underway ; this omy is. appraiseda ^Evqn,3riore so selectivity in investments, Bache
times-earnings. The road has is the Keynote witn Kaiser Year at" an expenditure «of than in the past, .because of the &„Cb; declared.
kevnnte
with
J
?
is
me
ixaiser J
^ q nnn nnn
dynamic changes and diversity of ; T„
some
eight million acres of Aluminum planning to add more than $13,000,000.
action in the economy, investment T■• ?-,, " clll Ol tll0 lI71ClUStricll C13SS1-"
«
t
f 1 •
ertlrtrttitro "
LlSt»
with

a

new

- Wmcn.

,

potential
income

wells

oil

from

on

its

lands
the

its half again as much capacity
producing in its expansion plan. Alumi¬

lands

and
are

ex¬

num, Ltd. isprojectinga
$3,000,000 better-than-40 % increase in
which would double output as demand continues
its income from this source
to expand sharply.
last year. A rather long-range
*
*
project, which for a couple of

pected

to

reach

|The
article
time

views
do

not

coincide

^

been

hailed

as

a

Louisville

been

worthwhile
move,

cost-reducing

is merger

Northern

with Great

which




is

rail, the
the
irie

&

Nashville

something of

those of the author

in

only.}

suspense

favnrphlo
iavoraoie

rtYarv,irtor-'e
examiners

r-o
re-

again port recommending approvaL'

1956

and

pointed

reviewed
out

that

"signs were apparent at the outset
of the year that while the level

Mclnnes Adds to Staff
(Special to The Financial Chronicit)

the

&

This

was

.

,

would be high,

pattern would be

1955."

MIAMI, Fla.—Albert F. DuVer-

ger

.

.

of business activity

*

*

,

v...

well

as

the securities

in

each

SrojiP, are analyzed These

classl-

companies

f'.catl°?s lnclude anr conditioning,

aircraft manufacturing, airlines,
^anks, electrical products, fm^nce,
building, chemicals, coal,
drugs,

evident,

it said,

equipment,

oil,

oil

well equip-

men.t» paper, rails, rail equipment,

£etaA*
stee^'. hres and rubmoblle output andasresidential con ment,utllltles> agricultural equipber>
struction as well
the worsening
automotive, electronics and

members of the Pittsburgh and

Philadelphia-Baltimore Stock Ex-

--4-

as

various

foo^ glass, insurance, machinery,
altered from metal fabricating, mining, office

is now connected with Mclnnes in the slowing of the rate of autoInc,» HuntinFton Bub ding, mob;ie outnut and residential con-

changes.

^

fica;ions
of

Vhron^They ^reshntel the'p^ern oF busi^e.'thus
as

has

dormant
hinging on
a

Uirthlxr

nUAl1l J

"I •

the study advised.
The brokerage firm

this year,

decades has

_

policy should be highly selective,

expressed in this
necessarily at any
with those of the

^

outlook for agriculture.1

motion pictures.

,

Volume 184

Number 5556

...

The Commercial and Financial Chronicle

expected to double

Favorable Air Transport Outlook Cited

5

in

upon the indications of 15%-gain in revenne
miles for 1956, Northern Trust Company reports
air passenger traffic overtook both rail coach and long-haul
passenger

-

>

travel; and predicts new capital outlays may bring the grand
aggregate of equipment commitments close to

Y

or

even triple
These optim¬

volume by 1965.

volume,

combined

;

with ' the

standing

heavy

commitments

try's

determination

to

new

ket.

3

capture

a

mar¬

forecasts

continuing rapid
transport volume,
the

for

in

growth

air

heavy

outstanding commit-.
ments
for
new'
equipment" • is
viewed by the monthly July bul-

earnings for the 1956
there has

growing share of the
travel market."'
,
1 *
•
,„

Y

,.Tn 1955 the airlines

;-

reported

**

new

again

peaks in traffic vol-

.

the

States, increased from 16,3 billion
1954

in

to

billion

19.2

in

1955,

a

gain of 18%.. Coach traffic was
25% higher and first-class traffic
was

14%. -The

entire

passenger

miles

-

last

year against 20.6 billion the
previous year. The total number

a

"As might be expected of corn-

operating

planes

utilization

permitted

increases

in

/

the

of

faster

substantial

miles

passenger

flown.

'

Last

year,

nues

of the

fall

in

a

and

new

traffic,"

ger

according to "BusiComment,"
continues
the
rapid growth which has been evi¬

ness

dent

for

many

years,

j

trunk

times

lines

in

the

have
last

20

and

years

nearly 6 times in the last 10.
1955

traffic

passenger

of

a

In

the

scheduled trunk and local service
airlines overtook both rail coach
and

long-haul bus travel.

tic air traffic may

soon

Domes-

exceed all

rail coach and Pullman passenger
traffic, excluding commuter travel.

but

reve*

been

counted

once

an

the

last

for

year

operating

domestic trunk lines.
trunk

with

lines

only

are

now

two

or

lines

only

Oth

much

330

2.7%
the

of

the

meet

will

weeks

a

once

ures.

be

held

first

The

"Currently,

£

revenue

address.

same

passenger-

The

:

•

in

months.

The

Civil

person

19

or

at

for

Street &

do

may

the

so

Baruch

the

of fares, and the growing acceptance of this method of
travel
by individuals and busi¬

IBA

Aeronautics

nesses

alike.

men

"In
anticipation
of
future
growth and to upgrade equipment,

the- trunk
year

or

so

mendous

lines

have

embarked

in

the

upon

past
tre-

a

expansion program.
Orders totaling about $1.2 billion
have been placed for jet and turnew

boprop transport planes, with deliveries scheduled for 1958 to 1961.
In addition, more than $500 million worth of piston engine planes
are

to

on

order.

come- may

New purchases yet

bring the grand

ag-

for

the

leading

industry,

P°rt wiU account for over-50%

course

were
''

traffic will result from the applieation of coach service to .shorter
uau^s and possibly from the use
of helicopter service between
Clties- Air travel also will tend
to become increasingly attractive
the

growing

tfaffi?'

of

planes

1961, deliveries of these
will result in a capacity-

 53-6(L billion
estimated
at


seat-

in

course

will

Financing

Corporations,

keting of Securities,
Policy*
*

and

;

*

.

governments to loans, in the 12 months

holdings declined 23%, loans increased 18%. Banks surely

Bankers Trust,

New York

Months

City Banks

Ended

June

V

.

Earned

^

Management

than

950 Broadway.

.

Book Value

;•

1956

/

Dividends

-

;

Paid in

.

1955

13.2

.

1956

1955

6.7

;

8.1

59

58

59

"47

1956

14.7

12.1

6.8

8.3

14.6

13.5

8.2

8.3 \

62

60

12.4

8.1

8.8

55

53

11.8

10.1

10.7

22

19

8.1

60

64

6.8

13.3

15.3

"

Trust-

-

14.7

5.5

6.5

7.0

8*

50

13.8

7.6

9.4

98

75

83

14.2

15.5

Manufacturers

18.0
14.3

„

.

.

13.4

12.1

8.1

18.9

14.7

6.9

.

56

*66

8.4

52

52

9.1

60

43

"

_

_

United

States Trust-

_

"

15.0

12.7-

7.4

7.8

63

58

7.3

12.7

13.5

8.2

67

59

Adjustments have been made for capital changes.
tional City Bank's

as
as

based

material is

Empire Trust

to

First Na¬

data includes the affiliate, City Bank Farmers

the

and

Co.

earnings

on

ijvhose

operating earnings only

data

is

based

on

indicated

it does not furnish interim income accounts).

BANK

NATIONAL

SECOND

QUARTER

•

COMPARISON

ANALYSIS

&

of INDIA, LIMITED

be

Bankers

to

Kenya
Head

the

West

Invest¬

Government

Colony and

Officer

26

London,
End

E.

13 N. Y.

in

Uganda

Bishopsgate,

(London)

City

Bank Stocks

C. 2.
Branch:

*

*

13, St. James's Square, S. W. 1.
Pakistan, Ceylon,

Analysis

^

on

Request

<

Branches in India,

-

Authorized Capital
-

,

Paid-Up

.-£4,562,500

Laird, Bissell & Meeds
Members

New York Stock Exchange

Members

American

r

Capital-^-

£2,851,562 r
:
Reserve Fund_l__,
£3,104,687
The- Bank conducts every description of
banking and exchange "business.
-

*'*

Corporation^
.

Aden. Kenya,

Tanganyika,
Uganda. Zanzibar, and Somali■t-\
-land Protectorate.
1
1

become connected with

FIF

on

of

DENVER, Colo.—Olin SrShephas

-

% Earnings

"

(except

Tkz Financial Chronicle)

pard

*

•

11.7

Trust

^

competitive fare^Air freight,>
which currently ^counts for dess-

30
%

.

13.9

_

Mar¬

Joins FIF Management
*(Special"To

14.4

—

_

Burma,

_

June 30,

on

nearly 24%\ First National City's

Ratio

ment

more

sUU.more

of

(earned

degree, it will be clear how effective

1955

of

the

really sizable

accompanying tabulation

back in business, their traditional business.

Twelve

Security Analysis, Problems in the

-

5% of operating revenues is

was

earnings.

shift from

Thirteen

Financing of Business Enterprise,
.

volume .,V;

permits speedier s<medules,

in the

seen

compared with the 1955 rate of 6.9%, a gain of

Irving's gain

to the

ernment

Chicago, 1375
Street, Chicago 37, 111.

'Included

.

as

It will be

in building up

As

are

W.,

Department

a

by $1,773,000,000; but loans increased- by $2,376,000,000.* While gov¬

Investment
America,
N.

on

banks showed

to June 30,1956, government holdings declined among the 13 banks

is

of

Street,

Study

University
60th

in the earlier

as

the higher interest rates and the shift from governments to loans

•

•

,

SYlose toq^PSn.Tymth; freauent.serviceYand
end

the
East

ratio

same

*<

/

Some of the gains over the earlier period were

on Sept. 18
School, 23rd

Director,

Association

the. Home

of the common carrier passenger
market by 1965, compared With
P/16,"
in
^ *s believed
a substantial amount of new

logicall

a

al|

Washington 4, D, C. This should
be .'sent with; tuition
($45.00) to

trans-

are

v <\

Price:

Thirteenth

425

spokes¬

air

'

•

assets larger to only a minor

Correspondence*
Banking

Bankers

as

important ratio is the rate of operating earnings

Lexington Avenue, from

Educational

generally

capital funds is not

up

increases

Earnings

Long-run Prospects
to

'

6:00 to 8:00 p.m.

Pass¬
"According

dividend

ratios

So

some

19%; Bank of New York's 22%. For
l3 banks the improvement
aver&ged out at 13%. When it is realized that they had working

*;

Board has authorized important
As a measure of the
expansion in route additions and extensions in Course In Inv.
air
service
offered, over 2,000 various sections of the country,
; CHICAGO, 111.—The Education
flights were scheduled daily last The Board believes that the addir;
Coftirftittee >. of
the
Investment
year as compared with only 284 tional
competition will generate Bankers Association of America is:
in 1938, and the number of
pas- new traffic, although some indusoffering a correspondence course
sengers carried rose from 1.5 mil- tr>r observers fear that the net rein investment banking in coopera¬
lion to 41.6 million in the same sult may be to reduce the avertion with School of Business and
period.; Airline traffic, of course, a8e number of passengers carried
the
Home-Study Department of
has benefited from the rapid ex- Per PlaneWide use of newer the
University of Chicago.
The
pansion in personal income and carS° planes and a strong business
New York
Stock Exchange will
the steady growth in population situation
presage a further inaccept the course in partial satis¬
over the postwar years.
But the crease in freight ton-miles and
faction of the requirements neces¬
main factors accounting for the express business in 1956, and the
to
qualify
individuals
as
much sharper gain in airline vol- CAB has authorized the airlines sary
registered representatives.;.
ume relative to
competing trans- to experiment with a slower but
Y Registrations
are
accepted at
portation media appear to be the cheaper deferred air freight serv-,
improvements
made
in
airline ice which 1S intended to compete any time. Y A xspecial enrollment
form may be ^obtained from the
service, the increasingly favorable more directly with railway exstructure

hence

and

-J

nearly 32%.

miles „ flown
are
substantially $25 (this includes • a- $5 registra¬
greater than in early 1955 and tion fee); Those wishing to register
Sains of UP to 15% are indicated
for the ful1 year- Coach services
are
being expanded to include
newer types of planes and deliveries of new aircraft will enlarge
caPacity for the big summer

deposit

remaining two showed the

1956 book value)

included

are

-.V ■"*

■

fee

total

with

the need to build

are,

that J. P. Morgan & Co.'s 1956 figure of 9.1%

Monday,

on

receiving pay¬ in ;the Class Schedule that' may be
including the other; obtained
upon
request* to
the
segments of the industry (mainly.. Evening \ Session
Office
at
17
Avenue
(ORegon
local and international lines), mail Lexington
3-7700—Ext. 76) or to Professor.
contributes only about 5% of total
Jerome B. Cohen, Supervisor of
revenues.
,
'
Finance and Investments, at the
1956

which

justification that

.'Y-'.Y %

percentakewise.

still

for

of

greater rate of earnings on book, using the same 12 months' fig¬

:

Even

Outlook

now every

Certainly,

;

they

pressing,

or

Another

Monday

on

Street.

21st

Registration forms

>

result

a

book value, or stockholders' equity.. Here all 13

Sept. 24, 1956. The course is open
to the general public. Y
;■

subsidy-free,

made.
as

months.""

Edmund W. Tabell

'

14

will

as

dividend

some

banks have long

■

course

East

be

while the

-12

YY"YY

session

that the

Y Of our 13 banks,. 1.1 showed a lower pay-out ratio for the 12
months ended June 30, 1956; than in the similar earlier period,

jf

1

of

30, 1955,

Y ;

evenings from 6:20 to 8:00 p.m. at
the College's 21st Street Center,

ac-

fact, that there is

expectation.

,

tech-

•

in

so

^urgent
.

av

a

for

week

Most of the

three

e r

niques.
> The

of

revenues

c

evaluation

important

business,

i

This augurs

relatively scant pay-out! basis,

a

on

increases

his'

provide

of 5% less.

or an average

Y conservative

methods

it

r

c

55%,

In the 12 months ended June

58%, while; at the later period the ratio

increases for it must be borne in mind

ForeY

discuss
own f

trunk lines amounted

Revenue

expanded 50

stood at

.

operating

gross

mail,
mainstay
of

passenger-miles flown by domestic

.

this averaged out about

in. "Stock

Market

to $1,133 million, 16% more than
in 1954. Net profit rose from $51.5,
mililon to $63.1' million, a new
record for the industry.
United

small

Vigorous Growth Trend

of quarters

{reserves and retained earnings hdve been greatly increased.

1948, however, the. trunk lines* as ,;;Mr.
Tab ell
group have operated profitably; will not only

ments:

"This steady uptrend in passen-

number

a

and

ings disbursed in dividends.

Adminis¬

a

of the

greater

Public

rapidly growing industry, operat-. casting Tech¬
consider- niques? (Eco¬
ably over a period of years.^ Since- nomics 1764).

to

and

For

;

School

this

course

ing results have varied

States

1955, but larger seating capacity

and

Baruch

.

panies

aircraft operated on scheduled
domestic and international flights
increased only slightly from 1954
of

more

Inc., Will give^

ings (net income plus depreciation) have increased in each year,

revenue

seg¬

Co.,;

and gross revenues and cash earnY

billion

Business

.

sched-

airline

quarter.

transportation

M.

of

industry, which inlines, local services, international carriers, territorial
lines, helicopter services
and Alaskan
lines, flew some 24.3

up

uled

cludes the trunk

mass

f J In Mkt. Forecasting*

'
"•
Profit Performance

'

.

passenger-miles of the
domestic trunk airlines, which acr
the air mileage
continental
United

the

up

,

Revenue

count for most of

of

the handling tration, The. City College of New
of passengers and baggage,> All > York has
announced that Edmund
this, of course, will involve vast T a b e 1 1 of.
outlays of funds.;
1
• >' Walston &

ume

within

speed

necessary to

and further substantial gains
have taken place so far this year.

special

second

a

market (such as

communications channels are already outmoded. It will also be

oir

once

of

been

steady trend of higher operating earnings; and
With increasing volume of loans
and the higher rates
applying to

inten¬

more

Bank Stocks

—

required to forecast higher bank stock

Tabel! to Give Course

to .capture a

nn^ 'i«fa?•
port industry, states ..that,

as

.

pany, Chicago, as evidence showing "the industry's determination

ihi

promotion

ments

Moreover, the

letin of The Northern Trust Com-

cr

sive

well

as

Week

acumen was

more loans as
they matured under the old rates there
could be only one way: a continuation of the trend.
coach, tourist and
coming of the jet
Bank stocks are getting to be better values on several impor¬
age raises important new prob- - family travel) r Will' play an im¬
tant tests.! First, in the important consideration of the
portant
part
in
the
price-earn¬
industry's
lems for the airlines. ;A way is *
ings ratios, only two of the 13 leadirig New York
drive toward this goal." Y'"Y YyY?
City bank stocks
being sought to reduce further the
showed a less favorable ratio for the 12
months ended with June,
noise made by the giant jets. Most
1956, than for the like period a year earlier.
In other words, the
existing airports are considered-;
market is pricing these bank stocks more
favorably to the investor
inadequate as* regards length of
now than it did a year
ago when the ratios were nearly 10% less
runways
and ; flying
area, , and
in his favor,
y Y 'VY ::Y-Y*rV*"'
*
present air traffic controls and*
Then there is the matter of the
proportion of operating earn¬
; The Bernard

combined with

in

delivered,

miles, depending upon equipment
retirements, as compared with a
1955 'capacity of only 30 billion,

No great

V

.

"optimistic

This

—

The additional improvements

in comfort, speed and
safety to be
realized as the new equipment -is

J>2 billion. Y

The

By ARTHUR B. WALLACE:

indus¬

growing share of the travel

-

out¬

for

equipment, underscore the

bus travel in 1955; believes domestic air traffic will exceed all V
rail coach and Pullman passenger
traffic—excluding commuter-'.

t

17

istic forecasts for continued
rapid
growth! in ! air transport

■Z-'*;- Commenting
*

(493)

>

.

Trusteeships and Executorships
also

undertaken

120

(L. A.

Gibbs,

,

Stock Exchange

BROADWAY, NEW YORK 5, N.
Telephone f BArclay *-356#
Bell Teletype—NY 1-1248-49

1.

Manager Trading Dept.)

Specialists in Bank Stacks

18

The Commercial and Financial Chronicle

(494)

is also suggested

Continued jrom jirst page

taxes

be

that corporation

reduced

in

help companies repay

Western Europe
beginning to develop as a sort of
American - Puerto
Rico,
giving

very

to

heavy

Indonesian

stable

increased expansion of facili¬
through retained profits and

Politically, all Western Germany

exploration.

trusted and

savings

of

.

the

near-term

cannot

be

not

new

ever,

too

future.

the

Eastern

Sector.

Adenauer

is

best

trusted.

possible terms for assistance.

France—This
still

one

Jovely country is

of the enigmas of Europe.

being criticized more and more for

Very wealthy in natural resources,

not

France

acting

sufficiently

independ¬

ently of the West. Some feel that
negotiations should be inaugu¬
rated directly with Russia to find
her

price for releasing East
Germany. This, of course, is part
of Russia's policy to split the West,
and I gather it is having some
effect
in
Germany.
Adenauer's
position is that Russia cannot be
out

that since

the Allies

Germany was my next point of split Germany, only they can put
unemployment figure
and this country must be her back together again. If this
for Italy is given as 2 million, I call,
considered
the wonder child of develops into a full-fledged politi¬
was assured that this is not a true
picture of affairs, since most of Europe. Unfortunately, I had the cal fight, Adenauer may lose some
these
people are working part opportunity to visit only Ham¬ of his control. His handling of the
time either as fishermen or farm¬ burg, but here the result of 10 recent rediscount rate problem did
years' hard labor were astounding. not help him.
ers or are considered unemploy¬
able. There is actually a serious The city, which was 80% de¬
These impressions of this im¬
shortage of skilled workers. Some stroyed 10 years ago, has been portant country can be summed
completely rebuilt,
the
Italians, who previously had mi¬ almost
up briefly as follows:
grated to Argentina and other suburbs are expanding rapidly,
(1)
Germany is healthy and
and business is extremely active.
South
American
countries,
are
The food was found to be excel¬ working very hard.
now coming1 back to take advan¬
(2) Actually, too much of a
tage of better conditions in their lent, hotel service superb, and
boom is going on.
homeland. But Italy is exporting prices very fair. The major prob¬
(3) No one seems willing to ex¬
unskilled workers as fast as pos¬ lem facing Western Germany is
press a definite opinion as to the
sible, although the birth rate has continued inflation. What with full
longer term outlook.
dropped lately. Agreements have employment and wages increasing
(4) No one expects war.
industry to industry, the
been concluded with Western Ger¬ from
(5) Germany is currently wor¬
many
for
the
employment
of Bank Deutsche Lander (equiva¬
While the

,

itself.
an

has problems peculiar to
Virtually self-sufficient in

economic sense, it is

that

France

minded.

has

only lately
export

become

it

some

tions, is resorting to the old trick
of
playing
Russia
against
the
United
States, thus seeking the

ties

greater special depreciation provisions.
thinks about is reunification with

true

is

Indonesia, like all ex-colonial na¬

the

the

and

Republic

mit

preferential tax rates to new in¬ public. Consumer Credit financing
dustries settling there.
The dis¬ is frowned upon and every effort
is being made to prevent its in¬
covery of oil on this island will
troduction into the country. In¬
also be of material assistance not
dustrial
expansion
has
largely
only to Sicily but to all Italy,
self-generated, but
there
since up to this point oil has had been
now appears to be some evidence
to be imported into the country.
As a matter of fact, there is a that productive capacity is top¬
out
and
private building
better than even chance that ad¬ ping
the
saturation
point.
ditional reserves exist in the mid¬ reaching
Generally speaking, there is every
dle of Southern Italy proper, but
indication that stable operations
at the moment, there is lack of
on a high level will continue over
proper legislation to permit its

than

The Dutch feel the

standstill.

short-term bank loans and to per¬

Today

loan advances to a rate no

order

It is still heavily depend¬

Thursday, August 2, 1956

...

to recognize that
problems exist
here as are present on the Con¬
tinent.
England has not enjoyed
the price stability witnessed in the
was easy

the

of

United
have

same

States

and

Prices

France.

been

advancing constantly,
and with more jobs available than
people to fill them, wages are also
going up rather consistently. The
export problem is becoming more
and

last

rather

a

rate

reserves

sharp

decline

the current re¬
not sufficient to

and

year,

covery

Gold

acute.

more

suffered

is

warrant confidence in

a

sustained

build

up. The loss of gold has so
agricultural exports for
far been due to excessive imports
foreign balance, but this year's
which sjiow no particular sign of
extremely cold weather has cut
abating.
But competition
from
crops
very sharply, pointing up
Germany is being felt keenly,
the need for diversification. It is
since English costs appear to be
a
difficult problem to overcome,
somewhat higher. Also, about 30%
however, since costs are some 10 of the
English Governments' ex¬
to
15% higher in France than
penditures are for defense. Ger¬
elsewhere
and
the
competitive
many spends practically nothing
position is not good.
on armament and has completely
Domestic
prices,
while high, modern
plants and
equipment.
have been relatively stable for
Taxes are a killing burden, run¬
some
time, but all the evidence
ning about 50% to the individual
now points to impending inflation
with income of approximately 400
once
again. Heavy expenditures pounds Sterling. In addition, there
for war in Algeria, running over are all
types of sales taxes so that

ent upon

a

dollars

billion

continued

a

year,

and

the

while

there

is

longer

no

any

Socialistic

programs
rationing, people are still not liv¬
left wing govern-- ing particularly well.
ment
continue to create heavy
To combat the basic problem on
deficits which are financed pri¬
inflation,
the
discount rate
is
marily through the nationalized
currently at 5V2 %; down pay¬
banking system, taxes, and lot¬ ments on consumer
goods pur¬
teries. There is no unemployment
chases were recently raised to
and wages have been rising very
50%
on
cars
and refrigerators,
in the last
to
our
Federal
Reserve ried about U. S. automobile pro¬ sharply (about 32%
Italians
etc., with a maximum two year
there, and Switzerland lent
duction and about our high level three years against a 10% rise in
has
been
using
about
270,000 Bank) recently saw fit to again
repayment; purchases taxes were
of consumer debts which they do the general price level).
There raised on an increasing number
workers on a year around basis. raise the rediscount rate to 5%%.
seemingly is no end to this cycle.
The two men principally respon¬ not approve of.
They are con¬
With a net increase of some 450,of items
(60% on cars, radios,

000 persons per annum to be ab¬
sorbed, the population problem is

sible

for

economic

actions

are

cerned

lest

our

market

for

their

fostered

The

by

a

French

Government

con¬

goods shrink through a recession. tinues to be a model of ineffi¬
(6) Germany has gone through ciency. It is trying to carry on a
still
severe
and
is further
ag¬
lief that in order to control infla¬ several
cycles in her recovery war calling for stern economic
gravated by the loss of Italy's
colonies and the; restrictions
of tion, they should not hesitate, if trend; the first, to get enough to policies, but because of its left
policies, grants more and
the United States on immigration. necessary, to go to a rediscount eat; the, second, to get sufficient wing
more social benefits at the same
Only Canada and Australia are rate of even 8%. This has led to a clothing; the third, to build ade¬
time.
conflict in basic policies- with Mr. quate
Nor can the administration
currently accepting Italians in any
housing; the fourth, to pro¬
Adenauer, the German Chancellor, vide other necessities. All of these decide what to do about Algeria:
numbers. ,■
.•;;
.,,;
\
who openly opposed the
recent are now pretty well available. The whether to get tough and fight a
Inflation has thus far been kept
increase as being too restrictive. country is
currently entering into real war or turn soft and concilia¬
fairly well in hand, but it is
Mr. Adenauer finally had to back a
travel cycle and it looks as tory to placate the Algerians as
slowly becoming more acute be¬
down, but this little problem is though she will shortly enter into best it can. As a result, with nb
cause of the dwindling supply of
reminiscent of the recent discus¬ the
stage of procuring better qual¬ real policy, it follows the middle
high grade labor, a bad spring
sion between Federal Reserve and
course and accomplishes little or
ity goods for her people.
crop brought on
by unfavorable
weather conditions, and continued Treasury Officials in the United
(7) A major road building pro¬ nothing. If such situations had oc¬
States, when our rediscount rate gram is in the offing as it must curred in any country other than
government deficits, financed
was
raised to 2% and 3%.
Herr be
throughout the rest of Europe France, it would have been bank¬
through treasury bills ($2 billion
Erhart, Finance Minister, has also as well.
rupt long ago. But here, despite
outstanding at the end of 1955).
kept taxes extremely high and'
the bungling of the administra¬
Generally
speaking,
interna¬ over
My
next
stop was
Holland,
the
past
few
years
has
tional
affairs
are
discussed
at
which I also found to .be doing very tion, the long suffering business¬
created
a
cash
surplus fund of
well.
The Dutch are concerned man is doing an excellent job.
greater length in Italy than else¬ six billion
marks, a policy with
Large electric power plants are
where. This is probably due to
which Germans heartily disagree. chiefly about France and England,
construction, oil is being
her location on the Mediterranean,
the former due to an adverse bal¬ under
Nevertheless, these rather drastic
exploited in the South, and atomic
the hot spot in the world today.
ance of
trade, the deficits caused
measures have tended to take the
energy is making excellent strides.
The farther north I went, the less
froth off the inflation, at least for by the Algerian War and the con¬
such topics were discussed.
tinued heavy domestic social pro¬ Left a little bit more to their own
The the time
being.
devices, the small and large busi¬
dangers to the West in the loss of
Pirating of workers continues, grams which may lead to further
nessman would be in a better po¬
Cyprus were particularly empha¬
devaluation of the French franc.
particularly in the building trades
sition to help rectify the problems
sized since this would leave only
where tremendous shortages still England is a source of worry be¬
of the country. This unfortunately,
Malta as a base for the United
exist.
To keep men in the coal cause of her loss of gold, the high
does not seem to be a nearby like¬
States or British Fleets to use in
cost of production, and the loss of
mines,
wages
have had to be
lihood.
protecting the Suez and the entire raised
there.; Despite this produc¬ political prestige throughout the
Eastern Mediterranean. The posi¬
The housing picture is still a
world.
tion, Germany is importing coal at
tion of France in Algeria was also
mess.
No
homes
are
built
for
the rate of about a million tons a
In Holland, the problem of in¬
described as precarious, since the
speculation or rental due to anti¬
month.
The
high price of this flation is also present.
Wages
granting of autonomy to Libya
quated rent, control laws dating
commodity has increased the use are increasing, workers are ex¬
has set a precedent for the other
back as far as 1913. Almost all
of oil by leaps and bounds. > Ex¬ tremely scarce, and costs cannot
homes are built on a cooperative
peoples of North Africa. Thus, it
Since Holland must
ports are still doing very well, but be reduced.
was
the
Italian
inclination
to
basis where the tenant purchases
the general feeling is that with export. all of its raw
materials, a suite. Costs are currently run¬
place the blame for the current
loss of exports because of
French and British problems in spiralling wage costs, prices of ex¬ any
ning about $10,000 a room, ex¬
port goods may get too high, thus uncompetitive production costs
Africa on the allied postwar pol¬
cluding bath and small kitchen.
reducing the export surplus and would obviously harm the balance
icy of liberating Libya from Italy.
Thus, a two bedroom apartment
of trade.
In addition, productive
with living room would cost about
Rightly or wrongly, they point out possibly resulting in Germany's
that in Libya there are only per¬ loss of position to other indus¬ capacity is being strained to the $30,000 of which 70% can be cur¬
trialized
nations
where
limit and cannot quickly be in¬
prices
haps a million and a half people,
rently financed on a mortgage
10% of whom are literate, and it may have been better maintained. creased so that the check of in¬ basis.
;
•
V-Spending by U. S. tourists and creased production on the infla¬
is too much to expect that the
Money is extremely tight, and
members of the Armed Forces has tionary spiral is not present to the
Algerians who are on very much
while
rates are supposed to be
higher intellectual scale to re¬ also aided Germany materially in degree that it is, for example, in
fixed, they vary greatly. Demand
main subject to colonialism when creating dollar reserves.
Import the United States. Holland is now
money on deposit with the banks
illiterate Libyans ride around in duties are being reduced and there very friendly with Germany as in¬
nominally carries a return of %
Cadillacs
and
become
Ambas¬ are virtually no restrictions on the deed she must be, since many of
of 1%, but in actuality, rates as
sadors to the various great powers. volume of such imports except on Germany's exports flow down the
high as 3V2% are being paid. Here,
Rhine to Dutch ports.
In Italy one senses a deep feeling certain farm products.
The coun¬
too,
a
capital
shortage
exists
of bitterness toward the French
There is a definite feeling in try is not resorting to deficit fi¬
limiting the new expansion of
and English on this account.
certain quarters that while sav¬ nancing and bank rates, while ris¬
plants needed to increase produc¬
Switzerland still continues to be ings have
increased remarkably ing, are still low as compared with tivity.
the rest of Europe. The
the paradise of Western Europe. over the past few years,
Dutch, as
more
My final stop on this tour was
are
most
Everything seems
to
be going should be done to encourage this usual,
internationally England.
Unfortunately,
I
had
along smoothly, the currency is sector of the economy. Therefore, minded and still pursue all sorts
only three days in London and
of triangular trades
stable, prices are not out of hand, some thought is being given to
involving all was not able to see as
many
and bank loans have advanced reducing taxes on individuals in types of currencies and/or com¬
people as I might have wished,
modities.
less than the rise in incomes or order to stimulate saving.
(My
since the bank economists as a
the productivity of the country. own feeling is that this is perhaps
The loss of Indonesia hurt the
group were leaving for Toronto
Swiss banks, with typical pru¬ dangerous since it might rather
Netherlands,, and business with where, an international meeting of;
dence, are attempting to restrain lead to increased consumption.) It this area is still virtually at a such men was
being held. How¬
Messrs, Erhart and Schaeffer, who
apparently are adamant in the be¬

(




etc., up to 90% on cosmetics and

perfumes);
the
tributed
profits

tax

undis¬

on

corporations
and
government finance. pro¬
have been held in abey¬
to

has been increased to 27%%,
some

grams

of

effectiveness

The

ance.

these

steps still has to be demonstrated.

British is
may not be
question most
generally asked is, "Where do
we go from here?"
So far, econ¬
The

fear

great

that these

the

of

measures

sufficient, and the

omists have been at
answer

and

cerned

that

loss for

a

an

they are deeply con¬
even additional con¬

trols

may not be effective.
The
problem is particularly complex
for
England because London is
still
the
center
of
the
entire

sterling
effect

area.

of

the

example,

For

wool shortage or sur¬

a

plus in Australia may have sub¬
stantial repercussions on the Lon¬
don money market giving it funds
for temporary investment if sales
of wool are good or vice versa,
and this without giving any con¬
sideration

seasonal factors

the

to

wool production.

involved

in

contacts

professed dispair when
some solution. No easy

for

asked

to

appears

panacea

be

My

in

the

offing, but it is hoped that with
higher interest rates (now 3%%
paid by banks for 7 days' deposits)
savings may increase
and thus
make more capital available for
expansion of production. This is a
slow
process
and
not a quick
answer. In the meantime, since
the economy

is now straining, ad¬
expenditures for plant
equipment cannot be hastened

ditional
and

are

available

due to lack of sufficient

materials.

the

if

even

funds

General Inflation

■

_

_

As

result of this brief survey

a

of

is

in Western Europe,

conditions

it

very

easy

to

whole Continent is
a

dose of inflation with no

severe

in

end

sight.

countries
troduce
tive

see that the
suffering from

are

All of the major
attempting to in¬

measures

both

quantita¬

and

stop

qualitative in nature to
the spread of the disease.

Politically, however, as was men¬
tioned previously, this is not al¬
ways easy to achieve because of
the
opposition
from
individual
segments of the economy;. " The
evidence
to

see

figures

this inflation

of

and
on

finds

is

easy

expression

full employment;

in

ris¬

ing wage rates; rising prices of all
types

of

commodities,

including

.j

Volume 184

Number 5556

.;

i.

*

\ i

i

i

v,

i

Mi

The Commercial and Financial Chronicle

♦

.

.

19

(495)

finished
to
-

goods; and the inability
output by any sub-

increase

stantial extent.

Each

•

-

•

country

has

attempted

variations of the

same

methods of

control. In broad terms these have
V

been described previously. Should
the
inflationary trend

continue,
(and frankly, I believe it will un¬

til the U. S. economy should show

signs

of

decline), further steps
problems. It is
questionable,
for
example,
whether additional monetary poli¬
present

cies

serious

alone will

plemental

be

effective.

thereto,

already resorted to various
titative

controls

sales taxes,
ments

on

Sup¬

England

such

quan¬

higher

as

increased

consumer

has

down

pay¬

purchases, etc.

Doctor Arthur Burns, Chairman
of
the
President's
Council
of
:

Economic

finger

Advisers,

placed

another
one
involved
in
a

factors

his
the

of

on

recent

To quote Doctor Albert L. Hahn

<

of

Paris, writing
publication, "The

in

finds

real

itself

Either

in

a

allows

one

later

until

takes

serious

a

place,

or

stops

one

ticularly

difficult

As

year.

far

in

longer
by far the

is

most

healthy,

since

merely to postpone

does

not

mean

that

it

crisis

a

will

not

occur.

Furthermore, 'Time won,
everything gained' is in this field
not a good recipe. But it is prob¬
ably too much to expect of a po¬
litical party that proper economic
measures be taken that might lead
to the suicide of the

Tn

party."

conclusion, therefore, it

seems

me

of

the

government,

and

exacting fiscal discipline and for that matter, individual busiintroduce corrective
funding of the public debt nessmen
may
well have to accompany measures are of the greatest im¬
monetary restraints when infla¬ portance, and the degree to which
an

some

'

tionary

of my

one

these

mount."

pressures

At least

contacts in

England agreed with this sugges¬
tion, namely, to fund some of the
short-term public debt into longV

term

felt

that

contacts

my

overproduction

mobiles is

and

subsequent

Fall.

of

only temporary and this
should pick up in the

while
mit

one

no

Associates Formed

!y>pf:

•>

•■■■■'

Formation of Walter F. Merkel

City

too

The

far

*

<.

firm

that

time

some

public relatio

serve

administration

the

in
will

so,

be

to

combat

caused

faced

which

of

taken
still

has

place in

could

medicine

the

place,

anti-inflation

past and

are

writer

metropolitan

"New York

American," New York

finest

"Commercial

the

medicine

coun¬

News

have, but while
may be helpful in

this
cur¬

for

leading

newspapers including: "The Sun,"
"New
York
Herald-Tribune,"

the

are

the

and

Bureau.

He

Financial

also

wrote

a

Syndicated

financial column for
of the leading wire services

one

and

The "New York Daily News."

certain

dangers, the most
important of which is possibly the

served

During

as

Financial Editor of

most

of

the

postwar

inability of America and the rest years he has been active in the
of the world to consume the output field of
public relations. For the
of our factories indefinitely.
To last seven years, Mr. Merkel has
insure

present

fore, it would
the

United

prosperity,
seem

there¬

necessary

States

to

measures

for

continue

to

prevent

excessive

been

Vice-President

a

rector

Inc.,

di¬

and

of

Gartley & Associates,
financial
public
relations

consultants.

production. This requires the U. S.

maintaining its international mindedness, by continuing to strive for
lower

tariffs,

backward

well

as

countries

aiding

as

economically

through loans or direct grants. It
also
implies the continuation of
controls.

monetary

proper

commentators

•

in

Europe

Some
are

of

the opinion that thus far the Federal

Reserve

Bank

has

enough.

strong steps quickly
It is pointed out that the

building industry has exerted too
much

influence

mortgage

in

terms

security
low

at

easy

interest

rates.
of

Furthermore, the stability
price level indices is deceptive

since

the

price

substantial

in

commodities.

additional
rates

is

has

By

to

be

economic

in
be

the

crises

in

prices of

inference,

tightening

felt

continued economic
*

dend of $2

tinued

of

money

essential

for

and

With R. J. Connell

June

fourth

stock

recent

years.

dividend

voted

and
were
paid in 1951,
1954 and 1955 respectively. The
four
dividends
have
added
$15
million to the bank's capital.
As
a result of the action on Aug.
1
there will be 3,600,000 shares of
$10 par stock outstanding.
*

*

York, it

*

July 25
by Arthur S. Kleeman, President.

Colonial

Colo.-—William

F.

Robert

J.

enteenth

Connell, Inc., 818 Sev¬
Street.

Mr.

Owens

not

 excesses.
production


commodity

York

City

offices that specializes in interna¬
tional

banking. In addition/to his
consulting
responsibilities,
Mr.
Baugeard is Assistant Treasurer of
Alleghany Corporation and a di¬
rector of Webb and Knapp and
Color

Pathe

Inc.

His

election

to

Colonial

15.

is

Trust

a subsidiary of Chesapeake Indus¬
tries, Inc.
:!=

i

>!s

#

With Hamilton Managem't

As of

July 16, the Franklin Na¬

Bank

of

Franklin

Square,

Bosin,

Jr.,

Francis

rities

Corporation,
Building. Mr. Lehr

Neck,

Great

of

Co.

Trust

Bank

Central

the

&

Long

Island, N. Y. to increase its capital

$1,000,000, consisting
100,000 shares, par value $10
per share, to $1,020,000, in 102,000
shares of the same par value were
from

stock

E.

Lehr

Club
previously

Denver
was

Robert J. Connell, Inc.

staff

from

institution

Senior
bour

of

the

of

enlarged First National Bank

undivided profits of not less than

$2,806,842.
; '-U*

1935

Bar¬

died

last

named

amount

r-'*'■'&'

vfV'

,

\

amount,

became

ef¬
*

:fc

-

t-

"•

'

•

■■■

'

A stock dividend of

served

*

to that

fective June 27.

on

the proposed consoli¬

on

Tulsa, Okla. by the

stock

new

has brought the bank's capital up
to $6,000,000 from $5,600,000. The

as

1921.
*

Action

& Trust Co. of

sale of

and

Mr.

who

increase

of $400,000 in the
capital of the First National Bank

with

Bank

13, and who had been with

-o-\

...■

An

George Young Jr.,

since

the

At

Akron had a capital stock of
$4,000,000, in 400,000 shares, par
$10 each; surplus of $5,500,000 and

when

consolidated

Vice-Pi*bsident.

named.

was

He had served since

succeeds

last

of

cor¬

National

1949,

National

the bank since
•i.

to 1

1925

Passaic

Trust Co.

Clifton

the

the

to

$250,000 has
the capital of

enlarge

the Union National Bank

of Little

of Keyport, N. J., with the Second

Rock, Ark. from $1,750,000 to $2,000,000 effective June 30.

National Bank of Red Bank, N. J.
be taken by the stockholders

The American National Bank in

dation of the Keyport Banking Co.

'S'V

will
of

the

by

two

banks

Aug.

on

10,

it

advices

Staff Correspondent

a

Bank

to the

Newark
which

"Evening

the

July

News"
issue

24

to

as

of

that

reported:

paper

"If approved

both

by stockholders of
the new institution

banks,

will

be

known

County

the

as

National

St.

of

Louis,

capital
Part

000.

\'

"The

520,000 shares now held bv
Second

of

National

remain outstanding, with the

its

$650,000.
$48,000

—

July 19.

sale

tional

shareholders

—

j

The
amount

will

increased

increase

The enlarged capital became

effective

coming the Keyport office,
-

has

$480,000 to

the

brought about by a stock divi¬
dend, while the sale of new stock
provided for an additional $122,-r

Red

-m

Mo.

from

of

*

*

was

Monmouth

Bank

*

"

Bank, with the Keyport bank 'be¬

of

of

Antonio,

stock

new

$500,000

Bank

of

by

Tex.,

the

to

the

Commerce

Na¬
San

increased

has

of

the

capital of the bank from $4,000,000
to $4,500,000 as of July 2.

keeping all rights.
The
1,000 shares of Keyport stock now i*. After

owners

a long journalistic career,
Yeates, Vice-President of the

outstanding will be exchanged for

Fred

190,000 shares of the

on

Bank

of

new

cisco,

Calif,

bank,

new

the basis of 190 shares of the

for

stock

each

share

Keyport

of

stock

Keyport

has

a

par

value of $100, whereas Second

Na¬

tional stock has

into

Co.

a

par

value of $1.

America,

San

of

for

and

Fran¬
years

many

its director of

publicity, retired on
July 31 from the banking organi¬
zation. Mr. Yeates joined the Bank
America

of

v,

Approved by the New York
Banking
Department
a

State
merger

National

First

the

of

effected as of July 2

was

Greenwood, N.

Y.

in

1937

and

was

soon

rity Trust Company
N.

of Rochester,

under the title

Y.

Secu¬

the

of the

trust

The bank's location is
occupied as a branch of the

now

V'

Poughkeepsie,

of

Bank

$880,000

be¬

N. Y.

of July 13, hav¬

as

been increased from $660,000

the

sale

of

$220,000

of

new

stock.
*

Andover

The

Mass.

Andover,

of

capital
to

as

of

increased

its

of July 19 from $200,000

$350,000

as

a

result of

dividend of $150,000.

1

a

Charles

■

.v.'.

John

C.

*

stock

has

Vice-

Thompson,

of Pitts¬

& Trust Co.

tional Bank

July 29, after a
brief illness. The Pittsburgh "Post
Gazette" reports that Mr. Thomp¬

burgh, Pa. died

son,

on

native of Newark, Ohio,
Rutgers University and

a

attended
the

University of Pittsburgh Busi¬

ness

School prior to

joining Peo¬

ples. As Vice-President, he was in

in

't.-"

*

*

*

First

National

Lane,

Pa.,

The

■

,

>

V:'v'

■

Bank

with

of

common

he

journalism,
1952

to

its

In the field

producer.

financial

serve

was

the

on

faculty at the School of Financial
Public

at Northwestern

Relations

University.

He

As¬

named

was

sistant Vice-President of Bank of
America

in

ident

1952.

in

has

he

utive

cial

1946

been

past year

serving in the Exec¬

Department

handling

The

Beise.

executive is
lic

Vice-Pres¬

and

For the

spe¬

assignments for President S.

Clark

charge of branch banking.

stock of
as

$50,000, was consolidated

a

bank

retiring

member of the Pub¬
Round Table of San

Relations

Francisco,

the

■

-•

been

paper

California

News¬

Co.

stock of

Bank

$300,000,

&

Trust

the

under

date

of

charter

and

At the effective

the consolidation, the en¬

larged and continuing Union Na¬
tional
derton

Bank

had

& Trust
a

Co. of

capital

Sou-

stock

of

mon

stock,

par

$100 each, surplus

$1,100,000 and undivided prof¬

*

♦

*

N., V.

Handelsbank

Wodan

of Sou-

derton, Pa., with common

of

Publishers Association, etc.

of June 29 with the Union Na¬

tional

$368,750, in 3,687Vz shares of com¬

-

-

•;•••

Barbour

W.

President of the Peoples First Na¬

•

'-'

and

selected

title of the latter.

*

National Bank

has

broadcast and for six years was

:

capital of the First National

The

came

'

J., under the

effective June 29.
1

Green

*

*

& Trust

Bank

editor

of

Bank

into

Princeton

of Princeton, N.

charter and title of the latter bank

of

*

with American Securities Co.; Mr.
Paul with

of

that

and

by

E.
and

of

and

-

of

Plans

(Special to The Financial Chronicle)

Colo. —Edmund

charter

„

ing

3 With Mountain States

as

the

The new bank, which is to open active in
organizing its publicity
increased from for business as of Aug.
20, will department and in establishing its
$9,748,000 by a stock dividend of, have 710,000 shares outstanding,
policies. His long career in the
$2,752,000. The plans to enlarge and a corresponding capitalization
field of creative writing began for
the capital were referred to in our
of $710,000. Its resources will be Mr.
Yeats in his native England
July 5 issue, page 80.
$33 Vz million, and its undivided when he studied under Sir Arthur
profits approximately $1,400,000." Conan Doyle. Since then he has
The
Meadow
Brook
National
An item bearing
on the
pro¬ written
movie
scenarios,
radio
Bank
of Freeport,
Long Island, posed consolidation appeared in
scripts, etc.
He has been a re¬
N. Y. has declared a stock divi¬ our issue of July 5, page 80.
porter, and drama-music critic as
*
*
*
:
dend of $169,810, as a result of
well as managing editor and city
which the bank's capital was in¬
The Hopewell National Bank of editor on various newspapers.
In
creased effective July 17 from $6,Hopewell, N.
J.,
with
common
1931 Mr. Yeates began writing the
792,440 to $6,962,250.
stock of $100,000, was merged with
"Richfield Reporter" radio news
*
#
'
*

*

DENVER, Colo. —Lloyal H.
Thompson has become affiliated
with Hamilton Management Cor¬
poration, 445 Grant Street.

effected

was

under

ital of $12,500,000,

Security Trust.

(Special to The Financial Chronicle)

DENVER,

Bank

held.

company.

ciated with Mountain-States Secu¬

as

commercial

a

New

four

News"

President, organized and

President

on

was

previously with FIF Management
Corporation.

the

future

is

Trust

"Evening

it learned from Red

announced

was

ate

June

one-for-eight

one-for-nine

*

DENVER,

30

.

of

Stock dividends

one-for-seven,

Newark

July 28 from its Passaic

President

■

Owens has become associated with

$3,640,000,

title

respondent. Mr. Barbour, Clifton
City Council, according to the ac¬
count in the "News," and former
Circuit Court Judge & State Sen¬

in

"''

Robert J. Paul have become asso¬

past, probably will
by overproduction of

capital goods

con¬

larger capitalization.
subject to ap¬
proval of stockholders and the
Superintendent of Banks, it is the
in

(Special to The Financial Chronicle)

stability, since

recent

caused

share will be

per

the

on

Declared

approved by the New York State
Banking Department on July 19.

the

products

industrial

of

rise

been offset by a drop in

farm

share for each five

held, payable Aug. 31 to holders
of record Aug. 3. It is anticipated
that after payment of the stock
dividend the regular annual divi¬

taken

not

sufficiently

-

one

tional

business

Merkel

Passaic-Clifton

the

Long Island, N. Y. reports a cap¬

and

ing the present disease, it carries
it

a

permits dis¬
stock dividend at

of

the rate of

spent

with

>

tribution

action

financial

Walter

June

of

of

stock

the

million. ' The

many years as

be

and

taking

the

F.

of

Directors

Bank

common,

effective date of the consolidation

rectors

head
firm,

elected President of the Board of

National

with

the

brings the number of Colonial di¬

serious

mortgage
debts
outstanding, and our tremendous
productive capacity. It is felt that
the
huge expenditures for new
plant and equipment that have

on

Walter

with

will

con¬

as

Merkel,

by the very high level of

consumer

1

relations.

the

rather

a

decline

economic

Aug.

shareholder

the prospect of introducing meas¬
ures

and

s

sultants

felt

or

n

com¬

ahead,

future

year

an¬

specialize
financial

in

..

who did express an opinion
to the outlook for the U.
S.

next

been

will

First

saic, N. J. according to advices to

has

York

the

National Bank & Trust Co. of Pas¬

Liberty Street, bank with

nounced.

willing to

was

themselves

the

Hanover

on

of

providing 600,000 new shares of
capital stock and increasing the
capital from $30 million to $36

& Associates at 92

those

beyond

York

corporate finance and invest¬
ment, has been elected a director
of Colonial Trust Company of New

Walter F. Merkel &

■

.

The

of

New

Edward Y. Baugeard, consultant

Pespite this generally optimistic
outlook, it is prudent to <suggest £ V;
several notes of caution." Frankly,

try

of

Co.

common

authorized the charter amendment

cession.

auto¬

.■

as

re¬

Stockholders
Bank

(with

stock of $100,000,) and the Clinton
Savings Bank Co. of Clinton, Ohio,
(with common stock of $40,000),
with

New

industry

x

boom

Ohio,

Akron, Ohio,

in

Generally speaking,

.

the

longer term the extent

obligations.

continued to be optimistic on the
outlook in the United States. They

.

of

effective will determine

are

the

over

Bankers

and

CAPITALIZATIONS

election

an

concerned,
term, the latter

the

over

way

conditions, agencies

modern

BRANCHES

OFFICERS, ETC.

REVISED

I'm

as

Northfield,

NEW

it

Banking

,

NEW

recession

Consolidation of both the Macedonia-Northfield

CONSOLIDATIONS

with the consequence of an immemediate recession—which is
par¬

to

Under

News About Banks

credit

expansion, permitting the boom to
continue

of

$313,413.
'

dilemma.

further

capital reserves,

not less than

States

that for the
immediate
speech in Boston, in which he
stated, "Experience is also teach¬ future, the outlook continues to be
ing the nations of the world that excellent, but, as in every infla¬
the
effectiveness
of
traditional tionary period, the excesses of one
monetary restraints has been re¬ type or another which are being
duced as a result of growth in the created, sooner or later must be
The extent to which
economic
scope
of
the
public corrected.
sector.

its,. including

German

a

United

that

Rotterdam " announces

general

meeting

of

of the company on

shareholders

July 4 at their

request approved the
of

Miss

Jhr.

J.

H.
A.

bers of the

that

resignation

Honigmann
G.

Sandberg

and
as

and

meeting they were

appointed members of the
of

Mr.

mem¬

Board of Directors,

the same

of

the

Board j

Supervision of the company.

The Commercial and Financial

20

.>>; V^\"
expendi¬
tures of about $66 billion annual
rate,

purpose of the United States to
obtain within the United Nations,

agreements by all nations for en¬
forceable world disarmament."

President
Eisenhower
appointed Harold
Stassen, Special Assistant on Dis¬
armament, with Cabinet rank. Mr.
Over

has

Stassen

ago,

year

a

ment for an

been seeking agree¬
exchange of military

the United
and the U.S.S.R. as a first
between

information
States

step toward a comprehensive
effective system of inspection

and
and

The continuing in¬
tense interest of the Congress in
disarmament is reflected in its

disarmament.

creation

a

year

ago

of

Special

a

Disarma¬
Chairmanship of

Senate Subcommittee on

under the

ment

budget

total

Manpower requirements of our
defense effort total be¬
tween 6 and 7 million persons.

2,865,000 persons are in the
armed forces and 1,180,000 civil¬
ians are employed by the Depart¬

About

ment of Defense and related agen¬

to these more
government em~-

In ' addition

ployees, many millions in private
industry spend all or part of their
time
on
defense
orders.
The
military
aircraft,
shipbuilding,
and
electronics industries alone
would
account
for
over
one
million full-time defense workers.
On the basis of the average annual

record

This

Disarmament

gives
cere

over

decades

four

clear evidence of the sin¬
hope of Americans for dis¬
the use of our re¬

armament and

peaceful

for

sources

purposes.

toward
this > end
should receive the wholehearted
support of all citizens. We are not
effort

Every

problems
in international relations which
must be overcome to make world
disarmament
feasible.
On
the
blind to the tremendous

hand, it is surely

other

not pre¬
give serious considera¬
this time to the conse¬

mature to

tion

at

of achievement of a truly

quences

'

peaceful world.
One

the

of

most

important

these consequences, I believe,
be
a
significant change: in
the

of

character

American

of

will
the

econ¬

Such a change will present
problems
requiring
adjustments

omy.'

both

in

world. ;;
The American economy today is
strongly influenced by the neces¬
sity for maintaining a large de¬

—these

in

creativeness

fense establishment.

characteristic

It is difficult

identify any area of public pol¬
icy in which the formulation, of

undertakings
the

are

we

rather

do

well

welcome,

the

the

economic growth, by

opportunities it will present.

We

get a broad perspective
possible economic conse¬
quences of disarmament by exam¬
ining the economic costs of de¬
can

the

virtue of their emphasis on devel¬
opment of certain types of indus¬
trial capacity.
Competitive rela¬

on

tionships

and other basic struc¬
tural elements of American indus¬

fense.

try have reflected

II,

the impact of
large-scale defense production. -

outlays
Since

would call for

approximately

when

1949,

the

Committee

Economic

It appears that Gross Nation¬

ing.

of

$14

billion.

Joint

published

al Product for 1956 will be close

its inventory of need for highway

$410 billion. The largest por¬
tion of this product, roughly $265

has been evident that

facilities,

to

billion, is being purchased by con¬
sumers.
Federal, State and local

Net foreign

billion.

$65

invest¬

It is clear that

ment will be small.

in the context of these Gross Na¬

Product

tional

components the
whole could suc¬
cessfully adjust to quite substan¬
tial cuts in the current $41 billion
level of defense spending.
The sheer magnitude and infin¬
ite variety of unsatisfied human
wants which have been postponed
economy

because

as

of

defense

economy

in

culty

Federal

become

our

by reducing de¬

do

these

America

wants
have

exist

translate

only

Not
but

in

we

the

demonstrated

ingenuity,

know-how,
to

possible.

and

into

wants

drive

the Department of

significant factor un¬
derlying the expansion of the
American economy is our rapidly

growth

is

the
of

:

,

Health, Educa¬

budgeted at $116 million, repre¬
senting about 5% of total Federal
research
expenditures.
Govern¬
ment
expenditures for military
research exceed its medical re¬

growing population. But of even
economic significance than

characteristics

represent

tion and Welfare in fiscal 1957 are

more

industrial capacity. (See Table

to

expenditures of

research

Total

Another

the

a

research
variety of

tions of nuclear energy.

satisfac¬

tions.

to

,

for

support
estimated

is

meet

to

approximately 50% of total ex¬
penditures in this country for re¬
search today.
Fiscal year 1957
Federal
expenditures
are
esti¬
mated at $2.6 billion. Eighty-four
per cent of this total is for major
national security activities. Onefifth of this .amount goes to the
Atomic Energy Commission, with
only a small fraction allocated for
development of peaceful applica¬

fense outlays should disarmament
ever

it

highway
'

for

development in

and

areas

are

that

billion,
a

needed

be

rising
standards
transportation.

would have little diffi¬
finding outlets for re¬

released

sources

demands

evidence

will

billions

a

convincing

$40

totaling

highway
improvement program is neces¬
sary. It is contemplated that an¬
nual Federal, State and local ex¬
penditures for roads and high¬
ways will be increased under the
1956 Highway Bill from the pres¬
ent level of $4.5 billion to about
$8 billion per year.
Additional

governments are buying nearly
$80 billion and business vpurchases
of new capital goods are close to

changing age
population.

the

One can only

search by 16 to 1.

The demand forces set in motion

speculate as to the benefits ac¬
cruing to mankind throughout the
world if this ratio could be re¬

by these population trends stag¬
ger the imagination. Business op¬
portunities are unlimited if this
challenge is translated into ex¬

—

The Economic Cost of Defense

have affected the extent and char¬

add

meet this standard

post-Korea ad¬

versed.

standards, including leisure, edu¬
During the past decade there
cational, cultural, and recreational
pansion programs.
has been .a clarification of re¬
opportunities, which would have
It would, of course, be impos¬
measured our economic potentials
sponsibilities, the establishment of
sible to inventory or list all of the
in a peaceful world.
machinery, and the development
many
private and public wants of techniques whereby govern¬
In the broadest sense, therefore,
which might be taken care of in
ment
and
private industry can
the
principal
economic
conse¬
the happy contingency that de¬
with greater confidence tackle ag¬
quence of disarmament would be
fense outlays could be reduced.
gregate r economic
adjustment
the opportunity for a major re¬
A few should be mentioned, how¬
problems in the future.
Under
orientation of economic activity
ever.
the Employment Act of 1946 the
toward more complete satisfaction
I ! Additional housing is one of the Congress declared that it is the
of the virtually infinite variety of
most apparent wants growing out responsibility of the Federal Gov¬
human wants.
We must, realisti¬
of the expansion of population in
ernment
to
"promote maximum
cally, expect that this reorientation
this and future decades.
It is employment, production, and pur¬
will present significant problems
anticipated that in the years to chasing power" with the coopera¬
and
require major adjustments,
come new family formation
will tion
of
-industry,
agriculture,
both
in
macroand
micro-eco¬
to demand for about labor, and State and local govern¬
nomic terms. By careful study of give rise
900,000
new
nonfarm
houses, ments. The effects of this legis¬
anticipated
problems,
we
will
while replacements will account lation have proved a stabilizing
better
be
able
to
employ the
for an additional 500,000 units, or force in the economy by providing
varied and highly effective instru¬
a total of 1.4 million new nonfarm
confidence both for business and
ments
we
now
possess
andr to

shrink

not

not

successful

The

Communist aggression, with
the persistent threat of its renew¬
al, has cost us—and the rest of the
world
the
higher real living

challenges
which
disarmament
poses.
Our focus is primarily on

mined, at least in part, by defense!
requirements. These requirements
our

but

from,

those policies has not been deter¬

of

attitudes

does

of

Act

justment points up the strength of
our overall economy in adjusting
to lower levels of defense spend¬

3.)

springs from which our material
progress flows."
Because of this

to

acter

our

our

which

and

accen¬

shortage
and

intensify
the demand for trained people in
this profession.
Official
State
hospital
plans
prepared under the Hill-Burton

1954,

year

course,

present

teachers

of 1946 showed on Jan.
1,
1956, an estimated 1,118,000 ac¬
ceptable hospital
beds in nonThis compared
tary and fiscal action was helpful. Federal hospitals.
1,968,000-bed standard
in„ easing the impact of reduced with the
set by the medical profession.
defense spending.
To

that is not available for consump¬
tion

qualified

production reached a new
high of $390.9 billion in the fol¬
lowing year. (See Table 1.) Mone¬

dollar output per worker, between
2 and 3 million workers were re¬

nearly universal
better
ways
of
had if we apply
imagination, and

recession

me

to

the

tuate

but

quired to produce the $20 billion
to see in this sit¬ of military goods purchased by the
uation the basis for an alleged Federal Government in 1955. (See
artificial emphasis in the U. S. on Table 2.)
The real costs of armaments and
military preparedness. According
to Soviet propaganda, the econ¬ defense, however, are bettter ex¬
omy of the United States is de¬ pressed in terms of the additional
pendent on substanial arms spend¬ advances which might have been
ing. In the words of the new Soviet made in the civilian sector of the
Foreign Minister, Mr. D. T. She- economy, had it not been neces¬
pilov, the economy of the United sary to allocate resources to de¬
States "demands constant militar¬ fense production.
ist stimulation."
Because of this
For instance, the cost of one
the Soviets claim all peace efforts
destroyer is enough to provide
on
our
part are insincere. This new
$10,000 homes for over 3,000
propaganda is aimed particularly families. The
price of one mod¬
at the great uncommitted regions
ern heavy bomber would provide
of the world.
hospital facilities for a population
Statements like this reflect ig¬ of over 125,000 people. The cost
norance
of a basic characteristic of one modern jet fighter would
of the American people.
This is, finance four years of college for
as
Congressman Mills, Chairman over 100 young people. In 1955,
of the Joint Economic Committee's about 2% of steel shipments, 3%
Subcommittee
on
Tax
Policy, of copper, and 9% of aluminum
phrased it, "our perpetual dissat¬ shipments went into defense pro¬
isfaction
with
present achieve¬ duction. Although these percent¬
ments, our alertness in recogniz¬ ages are small, they represent the
ing problems and our welcome commitment of substantial quan¬
acceptance of the challenge they tities of resources to production

public policy and in'pri¬
vate
management
of
economic
affairs.
More important, it will
present us with opportunities for present, and the
making tremendous, advances in conviction that
the material well-being not only living are to be
of the United States but of all the the proper effort,

ammuni-, program would, of

guns,

production of new offensive and
defensive weapons. Gross National
Product dropped $2.5 billion from
1953

from $10 billion to
Such a construction

billion.

$15

tion, and tanks to larger outlays
for:!' research,
development, and

Some profess

Sincere Hope for

from

penditures

economic life.

our

to

1960 for additional schools is esti¬

1954,

present

million

classrooms

mated to range

ships, tanks, and other
military equipment.

4

200,000

White

Education,

but there was a significant
shift to composition of defense ex¬

$41 billion (or 60%)
national security, with about

than

the

on

nearly 500,000. The amount which
should be spend between now and

some

cies.

from

vary

by

only was the level of defense
spending reduced from $51.5 bil¬
lion in
1953 to $43.0 billion in

of aircraft,

limited the
extent to which all levels of gov¬
ernment have been able to pro¬
vide the public services demanded
by a growing population. Tech¬
nological advance has been ex¬
tensively based upon and condi¬
tioned by the Federal Govern¬
ment's defense programs. Our tax
and monetary policies have been
influenced by the economic re¬
quirements of defense. The recent
hearings on Defense Essentiality
and Foreign Economic Policy by
the Joint Economic Committee's
Subcommittee
on
Foreign Eco¬
nomic Policy, developed the tariff
policy issues raised by defense
considerations.
Clearly, the elim¬
ination of defense mobilization or
its deemphasis will profoundly af¬

collected
Conference

Not

$12 billion going for procurement

Defense needs have

fect

Humphrey.

Senator

Serious Repercussions

of

Out

mates
House

ring at the end of the Korean War
mid-1953, was complicated by
a
related inventory
adjustment.

in

(See Table 1.)

,/

is for

which states: "That
to be the declared

continues

security.

Major national security expendi¬
tures are currently taking about
10% of Gross National Product.

Economic Consequences
Of Disarmament
Sen. Res. 150

national,

for

services

Continued from first page

it

Chronicle. f.Thursday, August! 2, 1956

(496)

■'

In the 10 years since World War

the Federal Government has
$310 billion on goods and

spent

,

TABLE

1

Gross National Product in Relation to Government Expenditures

Actual, 1939-1955; Estimated, 1956
(Billions of dollars)
-Government Expenditure for National Product*Gross

■

National
Year

Product

Federal, State, Local
Amount

% GNP

Amount

develop

Federal

-Total-

% GNP

Amount

5.7

$1.3

$91.1

$13.3

1940

100.6

14.1

6.2

2.2

125.8

24.8

19.7

16.9

13.4

13.8

11.0

1942

159.1

59.7

37.5

52.0

32.7

14.0

6.2

*

49.6

■31.2

1943

192.5

88.6

'46.0

81.2

42.2

80.4

41.8

211.4

96.5

45.6

89.0

42.1

88.6

41.9

1945

213.6

82.9

38.8

74.8

35.0

75.9

35.5

1946

209.2

30.9

14.8

20.9

10.0

21.2

10.1

1947

232.2

28.6

12.3

15.8

6.8

13.3

5.7

1948

257.3

36.6

14.2

21.0

8.2

16.0

6.2

1949

,257.3

43.6

16.9

25.4

9.9

19.3

7.5

1950

285.1

42.0

14.7

22.1

7.8

18.5

6.5

1951

328.2

62.8

19.1

41.0

12.5

37.3

11.4

1952

345.2

77.5

22.5

54.3

15.7

48.8

14.1

1953

363.2

84.4

23.2

59.5

16.4

51.5

14.2

1954

360.7

76.5

21.2

48.9

13.6

43.0

11.9

1955

390.9

76.8

19.6

46.7

11.9

41.2

10.5

79.5

19.4

46.7

11.4

41.0

10.0

410.0

1956f

-

C

-

decline

though
were

•For

the

purchase

SOURCE:
nomic

of

goods and

services,

Committee

Staff.




1956

estimates,

was

Joint

Eco¬

clearance,

improving
through

The

\

resulting from substan¬
defense pro¬

tial reduction in the
gram

substandard

cant changes in

might well occasion signifi¬
both our tax sys¬
monetary policy. Apart
from these revisions, rapid reduc¬
tion
in defense spending would
call for prompt compensatory fis¬
cal and monetary action to .the

tem

'

\

activity is our
;

changed complexion of the

economy

housing

dwellings,- and for streets, parks,
playgrounds, and other commu¬
nity facilities.
The nation's school construction

needs

goal.

replacement

rehabilitation of

and

by 1960, according to esti¬

:

and

TABLE 2

.

Departments and

Estimated Value of Deliveries to the Military
-

...

Value of Construction

1953-1955

r

"

Year

v

,

(Billions of dollars)

significant, al¬
employment
levels

full

because

withdrawals

from

labor force.
The

common

programs

standards

maintaining high

that

levels of economic

re¬

*

Hard Goods

Total.

Soft Goods

Construction

$23.3

$3.0,

$2.5

.

more

maintained

voluntary

fEstimated.

1939-1955, Department of Commerce

Defense Outlays

Significant reductions in mili¬
tary spending have occurred twice
in the past decade.
After World
War II, defense spending was re¬
duced
by $54.7 billion between
1945 and 1946. Under the impetus
of
extraordinary domestic^ con¬
sumer demand,
outlays for relief
and capital requirements in many
war-torn areas of the world, con¬
version was very rapid. Measured
in current dollars, Gross National
Product fell only $4.4 billion. (See
Table 1.)
In constant prices the

consumers

private .urban

might be
expanded.
Substantial expendi¬
tures might
be made for slum

Aggregate Adjustments to Reduced

1.4

1944

and

development

2.2

1941

$5.2

Public

:

% GNP

1939

14.6

dwellings annually.

instruments for ef¬

new

fecting these adjustments.

Major Nat'I Security

second

1953—1.1".
-1954—

of

>

,

adjustment,

occur¬

•'

20.1

1955——

the
.

SOURCE:

NOTE:

$28.8
21.7—'

Department

Detail

may

not

1

17.7
■

of

16.3

Defense.

add

to

2.3
1.8

<

.

totals because

i

■

1.8
1.9

_

of rounding.

-

<•

Volume 184

;

'Number 5556. The Commercial and
Financial Chronicle

(497)
extent required by
inadequacy of
private demand. The success of
such
compensatory policy over the*
past 10 years and the confidence
that timely action would
be taken
to
maintain
employment
have
done

much

to

minimize

contribute

to

investment

expansion

by

such

be

made

possible

of

this

revisions

foreign economic policy
and

Dynamics
Corporation
recently
said, "Now, I do not wish to imply
the defense
industry is re¬

of

would

as

relative prices, and profits. A
defense
economy, in brief,

that

sponsible for

necessary

by the changed international

our

probably

present prosper¬

fluctua-

tions in economic
activity.
The most effective
stabilization
device to meet a
substantial drop
in aggregate demand
is fiscal pol-

present.

Direct

.

.

wide industrial development
icy. If a cut in defense
spending might be a useful approach,
were to result in a
deficiency in ticularly in connection with

.

sions."

I

do

par-

cency about

such

mix

Resistance

non-

stantial

will

significantly
from

the

on

the

quo will serve

to

suggest compla¬
the possible severity

attain

overall

effi¬

demand, other governoutlays might be increased,
reduced, or both, depending

taxes

and

.

ing

The

power.

such

action

in

creases

been

effectiveness

in

stimulating
private demand

"

of

ask

has
in

Favorable budgconditions such as the $2

billion

surplus

infiscal

1956,

in

peoples to know the blessings of

productive freedom."

We

expanding population.
With
the prior claim of Federal defense
removed

would

or

local

better

be

able

to

solve

material

and

19534

human

resources

thereby released.
*
Expansion of private

anticipate
the

that

character

Federal Reserve

resulting from

the

quickly
thereby

increase

bank

reducing

the

sectors

of

spread

jc

increasingly

appreciation

of

our

economy,

Open

mand

built-

cuts

the

all

stantly

in

ours.

as

that

in

private
Substantial
tensions
for

a

is

alleviation
basic

a

and

fense

deemphasis of

level

of

private

;

■..

•

about

the

their

broader

own

terms

of

the entire
economy. For example,
President
of
the
General
■

Shipments

Total

(Tons)

y.

\:■

.

for Defense

.

Shipments

Production

•

7

81,641,882
64,143,371
85,937,689

1955—
•

~

1953.

.

-5,048,226
4,225,499
5,129,573

1954—;

1955

_

of

Defense




domestic

Such

-•

Percent

of Total

8.9%
2.8

1.8

"

758,604

15.0

"

277,204
166,926

3.3

-4,007,315
Mobilization.

—
r

scene

be

may

of

specific

shifts

labor.

well

as

in

the

type

of

in

and employment opportuni¬
ties
widely
available.
Serious
thought should also be given now
to

methods

for), assisting reloca¬

tion

of resources,
and location-wise.

both

industry-

Area

redevelopment programs
offer substantial assistance
unemploy¬

ment and unused industrial
capac¬

ity

as

a

result

of

reduction

in

defense spending.

At the Federal
a com¬

prehensive approach to such local
adjustment problems, introduced
by Senator Douglas and others, is
currently being studied by Con¬
gress. Such a program would pro¬
vide

for

facility
nical
for

industrial

6.6

24.1
12.1

8.6

To Be Held

an
'

loans

and

assistance

and

information

business, and vocational train¬

ing
and
retraining
subsistence
benefits for individuals. In many
of

local

problems

future.

near

.V7,

afraid, is in a posi¬
tell us when dis¬
may become a reality,

today

armament
nor

ess

even

of

to characterize the proc¬

reducing defense expendi¬
Yet the appeal of attaining

tures.

peaceful world

a

of failure is

and

the

horror

compelling that we
cannot overlook our responsibil¬
ities—as private citizens, members
of the business
community, public
servants—in anticipating and pre¬
paring for the adjustments which
will be required.
so

Our

experience
War II provides us
as

a

nation

we

since

World

assurance

are

that

capable

of

making these adjustments prompt¬
ly. We are not complacent, but
certainly we are not afraid to face

changing

world.

Rather

we

the true

From

of

source

our

use

of

re¬

sources.

Subsidy programs im¬
mobilizing resources which could
be

more

effectively

employed

elsewhere in the economy, should
be avoided.

The .cooperation
of
business,
agriculture, and labor would also

lowing conclusions

may

be drawn:

First,

high levels of defense
spending, although essential in to¬
day's uneasy world, necessarily
involve
substantial sacrifices in
the satisfaction of human wants.

Second,

abundant

further

our

living

safely

can

re¬

Although our citizens as a
whole enjoy the wdrld's highest
standard of living, an internation¬
al

situation

tailment
would

of

which

defense

make

it

permits

Medinah
The usual dinner
Thursdav ni^ht preceediner
the
Field Day will be held at the
on

Uni¬

versity Club of Chicago.
Members of the committees for
the
Field
Day are headed by

Arthur E.

Kirtley, General

The

Jb'irst

Boston

:

.

Chair¬

Corpora¬
\v.

7

•

Arrangements: Robert E. Simond, Jr., Chairman, Halsey, Stuart
&

Co.; John X. Kennedy; Charles
Lundfelt, McCormick & Co.;
Raymond B. McCabe, Halsey, Stu¬
art & Co.; George R.
Smith, Glore,
Forgan & Co.; Philip W. Sweet.
E.

Reception: Walter J.

Fitzgerald,

Jr., Chairman, Blunt, Ellis & Sim¬
Don

mons;

G.

Miehls, William
Blair &
Company; Pat G. Morris,
Northern Trust Company.
Entertainment: Arthur M. Hoff¬

Chairman, Mullaney, Wells
Co., John T. Boylan & Co., A..
Becker & Co.,
Inc.; Eugene C.
Travis, Harriman Ripley & Co.,
man,
&

G.

Inc.

v

■

■/

Transportation: John Kenneth

Clauson,

Chairman,

Sachs &

Goldman,

cur¬

possible,

and

promptly be taken advan¬
tage of, to advance that standards.
Third,

under

and

adjustments

Act

of

1946,

the Employment
the nation has de¬

veloped and will continue to de¬
velop effective skills, machinery
programs

for

and

Co.; Clay Brown; William
Christy, Braun, Bosworth &
Co.; Thomas Shockey, Julien

Special:

dealing

with
fluctuations in

levels of economic activity.

Sub¬

Charles

A.

Schoene-

berger, Chairman, Central Repub¬
lic Co.; Hugh W.
Blair, Halsey,
Stuart & Co. Inc.; William
Brown,
Arthur M. Krensky &
Co., Inc.;
William
J.
Corbett, Jr., Burns,
Corbett
& Pickard;
William A.
Grigsby, John Nuveen
&
Co.;
S.

Ogden,

public Company.

Central

Re¬

•

Prizes: Roland C.

White, Chair¬
Harris Trust and Savings
Bank; Thomas W. Evans, Conti¬
man,

nental

Trust
G.

Illinois

National

Bank

&

Co.; Elmer G. Hassman, A.
& Co., Inc.

Becker

Golf:

requirements

would

well be reflected in
unevenly dis¬

changes in productivity,

J. Fitz¬

Simmons,

Country Club.

Kenneth

opportunities

improving

duced.

effecting ad¬
justments. Changes in the com¬
plexion of the economy resulting
from deemphasis of defense
may
tributed

&

of Chicago
announces
that
the 20th Annual
Field Day will be
held Sept. 14, 1956 at the

leadership.

brief survey, the fol¬

our

be

primary
ing the most efficient

Ellis

Blunt

Collins
&
Company;
John
J.
Walsh, Jr., Mullaney, Wells & Co.

defense

such

Outing
on Sept. 14

and opportunities upon which the
nation has thrived and which is

expenditures

All

in

peace.

L.

.

of course, give
consideration to obtain¬

re¬

or

recognize that every step toward
peaceful solutions of international
problems offers us the challenges

could

should,

be

barriers

Club!

to

standards exist whenever

commissions.

not

President, of The Municipal Bond

man,
tion.

for

programs

gerald,

.77.

be made by State and local devel¬

,

by

do

not

CHICAGO, 111.—Walter

re¬

No one, I am

loans,

public
grants, tech¬

the

tion

a

level, legislation to provide

occasioned

spending

disarmament

Bond Club

Conclusion

This

ness,

defense

the way of

manpower

material requirements of
adequate defense program. In

non-

objective
involves
broad considerations Of the effec¬
tiveness of antitrust policies and

Certainly the problems

adjustments
in

represent—and must
garded as—economic

cent

at

as

adjustments

plans,

and

substantially > increasing
the
mobility of all types of industrial

solution

*

armament.
and
cuts

days there has been growing
lightly regarded. They may well talk in high places, both here and
have significant consequences not abroad, of significant reductions
only for the management, em¬ in military manpower
require¬
ployees, and shareholders of af¬ ments in light of the new weapons.
fected companies, but for entire Therefore, study of the implica¬
tions for resource use of
communities.
signifi¬
cant changes in the defense
On the
pro¬
whole, the best assur¬
gram is
ance
warranted, quite apart
that such adjustments will
from questions of the practicabil¬
be most readily effected could be
afforded by public policy aimed ity of overall defense reduction

resources—labor

these

considerations sup¬

nology constantly results in inno¬
vations which make
possible, de¬
sirable
and
necessary
radical

be

cannot

that

sincere progress in
military tech¬

capacity.

adjustments

necessary, there¬

port every feasible effort for dis¬

viewed

disarmament

is

effectively made.
It may be
concluded, therefore,
that economic

the

on

opment
Defense
as

•

773,640
363,087
345,388

make

may

anticipate
major re¬

public spheres, for

assuring

without fear or alarm. Such effort
is called for
now, even in advance

,

instances, major advances in the

..

•*,

7,279,056
1,815,470
1,582,319

-

Office

disarmament

It

will be

to integrate
thinking on this sub¬
ject so that the challenges which

the

be helpful in readily

—*3,211,158
3,009,676

1955

SOURCE:

'y.';,:'

/

*

^

Aluminum (Thous.
lbs.)

>

in

of

express

-

Copper (Thous. lbs.)
y

members

the

TABLE 3

1954.

7.

some

Shipments of Steel, Copper and
Aluminum
Mill Products and
Castings, 1953-1955

1953

,

adjustments
Apprehension

■

Iten' *nd Years

.

of

/

tendency, however,

apprehensions
business

Total and Defense

Steel

on

economy.

community to

The Federal Government
could
■

a

the part of
the business

when

"■

the

^

is

on

foreign investreductions in defense
spending become feasible.
ment

of

the

There

higher

a

dation of existing

to localities faced with

growth.

we

to

adequate,

of

consequences

unit within the Executive Branch

aircraft out¬

may

de-

forward

high level of defense

aggregate, the economy will continue to maintain a steady rate of

arma-

Accordingly,

program.

look

may

these

our

The

dustry, therefore, cannot be dismissed by assurances
that, in the

requirement

general reduction in

ments

spending.

impact cf reduced defense spending on a particular in-

abroad,
of

our

segments

about

major deterrent

a

investment

for
be

not

would be called for.

by international ten-

represent

to

demand

would

economic

may

respects

con¬

economy

ter
of
the
adjustments
which
would be called for and
to the de¬
velopment of techniques, both in
the private and

Govern¬

to the President for
Disarmament
can make is to
organize an active

hand, in the ap¬
likely case that

more

the

We

fore, that serious and systematic
thought be devoted to the charac¬

Executive

Federal

economy.

dynamic

a

many

justments.

the contributions which
the Office of the Special Assistant

re¬

7

The

the

localities,

the

ductions in defense
spending will
magnify significantly such read¬

One of

and

the

capacity.

In some cases, required
ments would be modest, while in
others
far-reaching

Political and economic uncertainsion

deR:nse

substantial

widely,
adjust-

economies of other countries,

ties created

bi

from

Similarly, the consequences
disarmament would vary

spending would provide an opportunity for economic growth and
expansion of our own as well as
the

resulting

total de-

in

spending does not fall evenly

Increased foreign investment in
period
of
reduced
defense

a

broad government policies

impact of

reve-

full

of

m°^e. difficult problems, we must
anticipate, will arise in connecof our business and labor infor¬
tion with the short-run adjustmation and employment services.
ments to be made by specific industries, localities, and sectors of In the latter regard, various agen¬
cies of the Federal Government
*be economy in response to basic
changes in, the economic setting, should be prepared to make infor¬
mation
about
investment, busir
As we all know, the economic

programs.

on

particular.

providing appropriate adjust-

m

to

automatic stabilizers
side.

in

/ments to fluctuations

Our progressive F^dincome taxes are important

and

Quite confident of the effective-

pensation, old age and survivor's
insurance, agricultural payments,
grants-in-aid to States, and other

nue

executive

we can

ness of

maintain disposable
personal income. On the expenditure side are unemployment com-

eral

the

f 7—c Adjustmentsbe
I have suggested,

in stabilizers which
operate auto-

matically

by

"s

wide—

the

and

era^ Government

and

S,S\gy
There

other

parently
put

legislative branches of the Fed-

reserves,

through the Board's
Market Committee.

the

civilian

our defense prowould require revisions in

ment

rates, by reducing reserve requirements of member banks, and
by purchases of government securities

of

?ther areas of public policy. The industry would be faced with the
implication of such a reduction alternatives of major shifts in re¬
f?r Federal policy with respect to source use, or if present resources
"the agricultural and natural re- are too highly
specialized, liqui¬

can

costs

of present

use

On

substan-

demand

System

utilization

of

within

such

disarmament in this context.

pose

would, in general, be faced with
only minor problems in shifting
the

the

of

*or example, might well be of
would
be facilitated by
making broad significance. These lmplimoney
and credit more
readily cations should receive the closest
available at lower iXest rates
attention at all levels of governThe

substantially

profitable

tial reduction in

sources

'

maintain

Sram

reduced,

major problems of financing pubprojects made possible by the

in

economy

governments

lie

must

change

an

and

would

velo'p the underdeveloped areas of sources now committed to aircraft
the world, to stimulate profitable production. If such demand would
and fair world trade> to as.sist a11 be
forthcoming,
the
industry

de-

outlays would provide the
opportunity
for
expansion
of
long-deferred public services and
facilities, such as schools, hospitals, and highways, demanded by

State

therefore,

outlays.

Branch

industries,

groups

go on

ment could well undertake
studies

,

spending,

purposes of this great work would
be: to help other
peoples to de-

fense

programs

fense

the question whether
non-defense
demand
would
be
adequate
to

world aid and reconstruction. The

would facilitate tax reduction.

Alternatively, reduction

its

percentage of the savings achieved
by disarmament to a fund for

the postwar era.

etary

"This

government is ready to
people to join with all
nations in devoting a substantial

in-

repeatedly demonstrated

ders comprise about 90% of total
sales in that
industry. Drastic re¬
duction in such
orders, as part of
a
general reduction in
defense

will

recognize that readjustments
and shifts of all kinds

;

r

actions

We

.

today:

basic

Finally, the impact of disarma¬
unevenly upon

particular

ment

-

purchas-

for

ment may fall
very

adjustments, but I do
policies might, in sucn a
types
of
industrialization
pro-, urge caution wicn
respect to con¬
situation, provide for full employ¬
grams as atomic energy develop- clusions based
upon the outlook ment of these
resources, we would
ment. Such industrial advance in for any one
company, industry, or not be
on
the value
realizing the Employment
judgments of the the v-present
under
developed locality in the economy.
Act's objective of
country as a whole with respect countries would afford vast new
obtaining maxi¬
The type of problem
and re¬ mum results from
to public as
economic in¬
opposed to private opportunities for increased priquired adjustments which
may puts.
spending. A decision to rely on v»te foreign investment, with re- well
,,7^77/7 v. -v.-v
be
faced
in
a
particular
expansion of private rather than suiting improvements in levels of
Clearly, a great deal of analyti¬
situation are,
perhaps, best illus¬ cal work remains to be done in
public activity would call for tax living. What President Eisenhowtrated by reference to the
aircraft appraising
reduction in order to
the
micro-economic
increase eV said in April 1953 is still true
industry. Currently, military or¬ impact of future
business and consumer
reductions in de¬
aggregate

ment

call

prompt government
be taken.

ciency in the use of resources.
Thus, even though broad govern¬

of aggregate

defense

should have assurance
that

sumers

only to increase the

maximum

in

changes in public policies. Agri¬
culture, labor, business, and con¬

difficulty in effecting adjustments

not

and

economy

to

defence-produced^status

,

reductions

-

spending may significantly affect
the complexion of the
American

change in
economic
relationships, insistence

repercus¬

fund

a

product

different

conity.
But, I do wish strongly to
participation by. emphasize again and
again that
the government
might also be de- if
there should be any sudden
sirable, at least initially. For ex- and drastic
reduction of defense
ample, pooling private capital and
expenditures, we should have the
Public funds to provide a world- most serious domestic

ditions.

produce

21

P.

Alden

Bergquist,

Chairman, First National Bank of
Chicago; Gene A. Frantz, William
Blair & Company; Clarke J. Rob¬
ertson, Bache & Co.
Softball:
William
A.
Noonan,
Jr., Chairman, Continental Illinois
.-

National Bank & Trust Co.; James
G. Brophy, Blyth &
Co., Inc.; An¬
drew D.
&

Buchan, Bacon, Whipple
Co.; Robert L. Myer.

;

'

yi'-

,V-'"'
„

The Commercial and

-

22

..,

Thursday, August 2, 1955

It

feasible. Of course, it would be folly for him ,
merely to demand lower taxes while outlays continue at
the astronomical
figures that have characterized the
Federal budget in recent years, and which continue to
characterize
it. Every category of expenditures are
enormously greater than they were prior to Franklin
Roosevelt and far greater than they need to be. They will
without doubt remain so unless and until the politician
is convinced that the voter means business when he de¬

lower taxes

a

far more

states not particularly interested in
let it be known in no uncertain
terms that they expect revolutionary changes in the agri¬
cultural policies of the nation—changes designed to re¬
quire agriculture to stand on its own feet, it will not lie
in their mouths to complain if billions of dollars are taken
from their pockets each and every year to provide the
farmer largesse. The ordinary consumer, in whatever part
of the country he mav reside, will in the same circum¬
stances be equally without standing in equity. The wage
earner can hardly complain about the high cost of food
if he condones, to say nothing of supporting, programs
which take large sums from him to support the farmer
and enable him to hold his produce for prices that are out
of line with basic market levels.
The thoughtful citizen who understands and realizes
the incredible extent to which the politicians have com¬
subsidies do not

mitted the future income and
to the

support of all sorts

take heed. The

Changing forces

Royal

control in this paper or to

might go on through a long list of pro¬
grams which have been brought into being by the New
Deal and the Fair Deal and which are not consonant with

brought this
the envy
of the world. Creeping socialism, it has been termed, and
it is certainly a far cry from the individualism, the selfreliance, and the initiative of the founding fathers. If
one
may believe half what he hears said daily, a great
many of the people of this country, quite possibly a ma¬
jority of the people, are deeply distrustful of all this col¬
lectivism and
paternalism. An active and aggressive
minority who are pleased to call themselves liberals, and
who have imported many of their ideas, make the welkin
ring in support of all this folderol, and an increasing
number of citizens have acquired and are acquiring a
which

country to a position that is and has long been

crying

need of correction.
so

long

as

the rank and

politicians understand that they want

something quite different. If they do not want something
quite different, and

attempt

In fact there

to. these influences.

seems(,to'be: ar 'diliitibn of pofwer

searches
That is one
subjects which

in modern life when One

for

elusive

those

of

locus.

actual

its

sociologists and others reserve
as part-of their preserves,
But some of the economic asthe

trol

are

above

by

owned

are

parent companies located outside
of
Canada. This in
itself will

the

affecting

decisions

which

policy of the subsidiary will rest
with

the owners. And

can

one

no

can

not be persuaded to want some¬


thing quite different, they will be obliged at


one

time or

The larger sources of

element in their success in som<]
kinds of investment. These con 1
cerns

quent expansion because
larger earnings as well

possibility of psing parent

resources

and

campaigns
branches

dis-

of

Canadian

subsidiaries

or

channels

porate

are

so

great and some-

trolled

and

may

influences upon
dian

will

consumption.

traced

entirely to a natural conin the Canadian charIt
is -the' size
of
the

servatism

acter.;

analysis

statistical

to

are

by

which

companies.

It

is

1

may

Canadian

coi

a ; wc

some

those

springing from the ownership and
control of a substantial portion of

usually

narrow.

capital
from
available for

The

amount !

Canadian
sourc
investment in i

dustry has been reduced by tj
prominence of non-resident X
vestments in Canadian industJ
for this has meant that a smal
portion of income from divider
accrues
to
Canadian* investc

examining today.

themselves

lend

ventures

for financing equity investmen
fall far short of our needs. Fi!
various reasons affecting both t!
need, the
current requirements supply and the demand for capit
for capital are increased further, the
range
of public issues j
The high dependence in Canada
Canadian
stocks
available
0n capital invested
by non-resi- Canada has never been wide ai
dent
companies cannot then be markets for equity securities a

of the

extension of non-resident
ownership
and
control
into
Canadian industrial equities

great

which

the purpose here 1
closely
the
Canadia
financing new co:

for

utilities to bring them to
And when the pace of de-

after the j0t, t0 be done and the peculiar
in this opportunities open to non-resident
have penetrating capital that have contributed to
fashions in Cana- some of the results we have been

Among the consequences

th|

source]
I

velopment is added to this primary

parent company activities
field

the?]

as

known characteristic of the Can;
dian capital market that faciliti

modelled

be

usually

methods

the

of

tribution

of

fruition.

sales

the

financing.

Gf

population for the reason that our undertaken

in

influenced

Likewise

cl

capital investment are necessary]
gut R also may work towarcl
ensuring their success in subse]

unusually large in relation to the

velopment. The rate and direction
of
much
of
our
technological

been

muci]

industry where large amounts

is

of Canadian development

other

has

themselves ten^ to be

larger than the average concenf
in Canadian industry* It h&s al
ready been noted that this ma]
be partly because they tend to b
concentrated in some branches c

examine

companies over investment and
over
productive
processes
can
have far-reaching effects upon the
course
of Canadian life and de-

manner.

financing

to the non-resident controlled concerns are an important

open

times require expensive ancillary
investments
like
railways
and

this

manu-I

Non-Resident Concerns Are
Larger

certain

deny that the power of decisions
which ultimately rests with parent

growth

non-resident in

It is not

The need for capital in
areas

be

the]
research]
successful]
ex-]

tal.

to

degree

the

determine

often

may

factoring where the product is
complex result of much
and design, and where
production lies in the use of
tensive
processes.
For the s e]
reasons
certain types of non-1
resident capital have special ad-j
vantages over resident capital,

Canadian controlled group with
respect to sources available to it
f0r financing
new undertakings
requiring large amounts of capi-

and v consequences of confairly clear-cut. Most of
direct investments which are

pects

.

Invested Undistributed Protits
Tbis -g consequently a factor
Recent development has thus work tending to moderate the s
been

influenced

greatly

by

the

present institutional framework of
this
continent.
More
of
the
sources

of financing business ex-

0f

of

incomes

Canadian

in

^nd consequpntly
th
margin of savings, which may
viduals

available

pansion have been through corporate savings than used to be the
case.
It is
not surprising then

jn

and
of financ-

ing open to this group of companies.
These
factors
will
have

that the giant corporations of the
United States have had such an

covery

special

effects upon the balance
oaympnts in the future and
upon
subsequent investment in

important

of

ment of Canadian industry

Canada. Corporate savings occupy

further investm
securities. Moreov
other eaualiz

for

for

Canadian
from the

income

corporate

special

sources

,

a

prominent

place

savings
savings,

Canadian
Canadian

in

sources

accounting
accounting

of
for
tor

almost two-thirds of total national
come

large part

Canadian corporate earnings
not available for extending
Canadian ownership and control,

are

cupies an influential place in the
everyday lives of mid-twentieth
century man it should be kept in
mind that there are irtany offsets

described

we

file do not make the

While

capital

of

the

with

Canadian

the

in

element

special
technical
combined with large!

Qr

essen-l
re-1
source, likewise giving advantage]
^Q
the
non-resident
company.]
somewhat similar advantages rest]

of

fully what it may
the corporation oc-

elucidate

to

developed

tial to the development of a

financial structure has far-reach-

/

risk.

reserves

being at the disposal of nonresidents either for withdrawal
as dividends or for
further investment
on
their
account in
Canada.
And this non-resident
controlled sector of industry is
rapidly growing. In some spheres
of recent non-resident investment
like m.ining and petroleum, the
potential .levels of earnings have
not yet been realized as developments are still underway. And, of
course,
the
non-resident
controlled concerns have as well the
much larger financial resources
of
parent
companies.
Consequently this group is generally
more favorably situated than the

throttling the very vital industry engaged in raising funds
to enlarge and improve our plant. When this happens and
to the degree that it occurs, all of us, whatever our calling
or
occupation, suffer the consequences. Were members
of Congress convinced that a majority of the people of this
country held this opinion, it would not take very.long to
get constructive results. Without such a conviction, there
is little or no likelihood that this burden will be lifted
from the shoulders of the nation;
v
"

The correction will not

the major

which generate

life in Canada. It is not
to pursue all the aspects of this elusive question of

the

situation which is in

Canada s This

on

0f

knowledge

of carnings accru—
to
nOn-resident
controlled
companies is significantly greater
than
the
portion accruing to
Canadian controlled companies,

purpose

mean.

undertaking

risky

a

of Canadian investors.

similar resource

requiring the resources as a

jng

porate

and

be

group
a

by a group o£ American compa-,
nies

Flow

ing effects. For a very

our

a

But

pointed to the
i m p o r t a n c e
of non-resident
ownership and control, potential
or actual, over a vital area of cor—

statute books, or at the very least very
drastically altered. Laws and regulations thereunder are

a

would
for

the proportion

This analysis has

removed from the

vested interest in it all. It is

Com

Economic Prospects.

directly affect a very large

philosophy

of the situations imposed
Canadian development.
For
example, to develop a new Cana¬
dian resource involving very large
and sometimes indeterminable ex¬

many

part of corporate earnings. And
jn the larger Canadian companies

have upon
life to the

may

national

future

our

proportion of the people of the country, but their influ¬
ence is pervasive.
Certainly, many a man and woman who
never buys or sells a security, could do much worse than
let it be known now that they disapprove of such enact¬
ments as these and that they would like to see them

the

cerns

subject and we, of course, leave
the
evaluation
of
what
these

The Securities Acts

and

our

industry
can
penetrate
further into some aspects of this

efficiency.

traditions

investors

non-residents, and well over this
in the case of manufacturing con-

interof

Some

with

which will not aid and abet such
waste and injustice. The same is, of course, true of much
of the so-called welfare legislation,, the minimum wage
and similar laws and much else that now renders it doubly
difficult to get the work of the world done with dispatch

the

for

Close to half of the profits of(|raw material is hardly an invest-!
primarily Canadian corporations accrue to ment falling in the same category

colleagues in .Ottawa with a more
intimate knowledge and contact

part of government

so

risk

differently situated
stand
out
clearly
in

involved

,

..

.

accounts.

national

full well that the tactics of many of the
costing them and their customers a great
deal of money without really benefiting anyone can not
afford not to make it known that they WStifa polity 'on

And

which ap-

statisticians
with Canada's

pear
to
concerned

vocal in his protests and
whom he supports this
vast number of employers and

The securities acts do not

undertakings for others.

contrasting elements of

penditures of capital without as¬
surance
of
satisfactory markets

Famine*
6

observations

e s e

.......

labor unions are.

and

Th

sequences.

will be limited to those

others who know

the

sure

The

Non-Resident Ownership

programs must now become
convince himself that the candidate
autumn will

and

13

Continued from page

production of this nation

and descriptions of projects

the

.

by

Policies

Farm

.

might entail great risks for some
kinds of investors may ibe safe

this matter.

determined. Now is the time to attend to

■. -

h

e

special functions of "risk capital"
of late. But investments which

Of Canadian Industry

If voters in those

farm

ab™d.

and

voters—when those voters are aroused

of the actual

reasonable level of outlays.

Different

pay

indifference. They

See

mands

in Canadian direct investments

through the nose for their ignorance or
will sooner or later be required to pay
similarly if they merely fail "to make their wants and
wishes known effectively when the politicians are seeking
election or re-election. Professional politicians may be and
are able to control a great deal in the field of government
and the like, but they must yield way to the mass opinions

another to

Continued from first page

t-

Financial Chronicle

(498)

savings
years.

s0 many

developwhen
exceptional opportunities
share in" the

equityl

there have been
factors

at

work

since

the

income
in
Canada
in 1917.
And th
structural elements in the ba
ground of the pattern of Canad
savings tend to have cumulat
of the personal

investments by established effects acting to hold down p
concerns have presented them- ticipation in- the equity owr

selves- ha(J welJof established sub_ ship of Canadian industry.
Many
these concerns
haye
sidiaries

in

Canada

while

others

Long Run Equity Features

of indue

have only recently entered. Many

Leading elements in these

energetic Canadian concerns show

has special features particulc

expand

half

last

Equity

ownership

dozen

the

in

and

their activities beyond the bound-

for-the long-run. The owners
future7 claim" to^rofits^am

depreciation allowances and simi-

aries of their own country as is

especially important when it

corporate
uted

lar

savings

corporation

business

costs.

are

undistrib-

profits

the

same

witnessed

tendencies

by

the

to

sharp

increase

in areas of production with

Volume 184

Number 5556

The Commercial and
Financial Chronicle

...

(499)
namic
It

is

possibilities
not

of

here

necessary

phasize the

between the Canadian
and United
States economies.

expansion.
to

em¬

importance in Cana¬

1

dian

expansion of the
groups of
industries in which
non-resident

investment is

so

prominent.

The ways in which the
Canadian economy is
becoming linked
with the United States are
manifold.
This is
becoming more

ele¬

ment of risk

seems
initially to lie
often those with the
greatest
prospect of growth. Those in con¬

ap-

are

trol of the future

of4

areas

large
Plore

our

economic
life will
have the earnings at their
disposal
whether for further
reinvestment

for

or

in

Canada

owners.

for

the

non-resident v

depreciation which

here.

some

These

been

re-

observable

are,

we

'operations
term

be-

important rate.

higher proportion of Cana-

the

on

basis

prevailing

prevailing

long-,

a

will
non

at-

.

be

reasons

ship and because
tionships.
There

fects which
existence

of

with

nancing

monetary

important

The

large

ef-

group

fi¬

upon

of

pared to

.

ysterious
f

new

implying

a

which

new

advanced

techniques

goods

to

in

rocesses of

production. This kind
industrial growth occurs under
e
aegis of the corporation. We

be assured it will spread
anada1 most
ay

other

This

the

but

companies

for

developing

rther in this direction
will often
the subsidiaries of the
United
ates companies which
will have
ready moved in this direction,
concerns

hnical

will

have

financial

and

their vast parent

the

resources

organizations

The fact that
already over onelf of the corporate income
of

is

well.

as

tician

goods incharacteristic of
Of

publicity

and

work

in

are

have
all
had
pervasive influences in this
direction. But much of: this can

trial
relationships
growing up.

uating the non-resident

which

is

owner-

ucture which

we

have acquired

ainly accelerates
1 development. It
ensure

that

indus-

our
seems

Canada

:

SAN
uel C.

by

occurred

dian

the labor incomes which
go
that position. We leave it to
articulate audience like this
estimate the cost in

of

in

Often

from

other

States.

suppliers
And

in

sources

the

sometimes

which

uenced

by

has been greatly
the recent growth

of

in

l-resident financed

been- the

industry
increasing -contact




the parent
Canada.

Likewise
in

not

PnrnnraCorpora

:

SAN

Treasury obligations

erick

are

A.

staff of

or

Russ

Murchall
H.

L.

has joined

Jamieson

the

Co., Inc.,

Building.

With

(Special to The Financial Chronicle)

DENVER, Colo.—James C. Cohig

made

the business climate
Canada is opened more to the

Bosworth, Sullivan

is

now

connected

Sullivan
enteenth

and

with

Bosworth,

Company, 660 Sev-

Street.

,

(

very

much.

.Short-Term Issues Dominate

.

maturity by these

The

concerns.

; :

>

'{•.;//'rvV.
intermediate-term Treasury
obligations have had a modest
activity, according to reports. It is

amount of

losses

indicated that tax

are

being taken in non-Government
obligations and a large
part of this money is
being reinvested in the middle
maturities of
Treasuries. These
swaps have not been too
large in size, but it is
evident that the number
that are being made
does, however, add
up to a fair amount of
volume.

"

Long Treasuries in Divergent Trend
The

longer

maturities

continue

to

readily in both directions, with the
small
mainly from public pension funds. It

be

1995 have been the

moved

amount of

is

reported

about

rather

buying coming
that

the

3s

of

leading Treasury issue with these
buyers. The
3%'s of 1978/83,
according to advices, have been
coming into the
market in fair
amounts, with the sellers,
reportedly, institutions,
that are
pptting the funds to work in new issues of corporates. The
2%% bonds have not been
getting very much attention because
there does not
appear to be any important
buyers or sellers oper¬
ating in these bonds at this time.
Some tax losses are
in certain of the
being taken
2V2S, but in these instances also
the size of the
trades do not make
J;hem too important market-wise.
,

New Corporate Issues

Waning

/

The defensive tone in
the government bond
market has not
helped the distribution of certain of
the new corporate
issues which
have come
along recently, although some of
these offerings have
been well received.
The flotation of
corporate securities will slow
down somewhat
during August, which
may be favorable to the
placing of some of the issues which
have been on the stale
side.
Whether prices will have to be
shaded or not on these
securities
will depend on the
course of the
money market.

//]■'Y/

New

Government Borrowing

It is believed the
government

anticipation securities

and .it

financing will
is

expected

take the form of

to

get a favorable
to advices, will be
large buyers
There is still
considerable of a

Corporations, according

new

money offering.
around that the
weekly

feeling
offering of Treasury bills will be
increased

and, in this way, part of
will be taken care of.

the

new

on

Coast

BEVERLY HILLS, Calif.—Harris, Upham & Co., 9860 Wilshire

Boulevard, nationwide investment
t,rokerage firm w[th 35 offices

Exchange,

15-week

a

program

has
of

showings depicting the

oper¬
ations of listed
companies on the
New York Stock

Exchange each
Monday from 7:30 to 9:30 p.m.
in Harris,
Upham's Beverly Hil¬
Frank L.

charge of the

Beverly Hills office, in
ing this
said that
and

new

publicly

service to

needs

of

announc¬

the

Treasury

films,

we

pleased to initiate this series

major,

American

He

said

feel, will

cor¬

that

serve

"the
useful

a

purpose in
effectively
the work of

presenting
listed companies for
the benefit of
investors and po¬
tential investors who are
natur¬
ally and properly interested in
the

acting workings of their

vestment dollar."
The

Beverly

dated

free

in¬

,

Hilton

parking

those attending the
is also

has

vali¬

facilities

for

showings, and

notifying all guests by box

which
&

of

coming

exhibits

include films of Louisville

Nashville RR.;

fornia

investors, Alcoa;

"Harris, Upham is proud

owned

porations."

enclosures

Patty, Harris, Upham,

resident partner in

money

of sound and color
films of

to Show

Industrial Films

ton Hotel offices.

ex¬

-

:
Interest in Government
securities continues to be
the short-term
mainly in
liquid obligations because
there is still a
funds that are
supply of
seeking an outlet in these issues.
Corporations,
according to advices, are the
largest buyers of such
securities, even
though the amount of
money going into these issues has
not been
; quite as
large as it was not too
long ago. A fairly impressive
amount of funds are now
being put to work in
of short
tax-exempt issues

film

FRANCISCO, Calif.—Fred¬

-

-

///j^'-V/<)

some

/,

launched

(Special to The Financial Chronicle)

;

'

-

or

coast to coast and
members of the
New York Stock

H. L. Jamieson Adds

.

concern

J.

connected

'

the steel strike

No Let-Up in Money Market
Pressure

Harris, Upham

Karey D.

become

Mana«wnpnt.
Management

com-,

lack of
•

to

:v

tion.

economic, istence of the branch in Canada
al, and political terms,
developing the Canadian market
erhaps
the
most
important widens the demands for products

nge

and
,

have

TrT1?
FIF

with

United
the

Olson

Starmer
with

Canada

components
parent

Blyth

the

(even
let-up in new financing is to be
expected in the next
so). This means that the
Government market is
going
continue to feel the
competition of the other forms of
investment, and with income and yield on
many of these offerings more
favorable than those of
Governments, this is not expected to im¬
prove the lot of

though

month

of the

FRANCISCO, Calif.—Mar-

M.

-

bring an end to Cana¬
imports from the United

States.

with

now

j

reception.

FRANCISCO, Calif.—SamRegister is

for

reasons

,

'

;

Co., Inc., Russ Building.

jorie

■

not

brought

404

Two With FIF

The estab¬

plant

a

Co.,

(Special to The Financial
Chronicle)

even

the Canadian market.

to the forefront of
industrial
gress and that Canadians will
e

&

SAN
-•

&

(Special to The Financial
Chronicle)

though many subsidiaries have been established
in
Canada
by United States companies in order to produce for

does

h

Barth

of

main

The settlement of the
steel strike
brought with it higher wages
and higher
prices, which will set the pattern for
wage and price
increases in other
industries, and this condition is not a deflation¬
ary one. Accordingly, it is the
opinion of money market followers
that there will be no
let-up in the pressure on the
money market
as long as the
inflationary forces are in the
ascendancy. Credit is
quite likely to be as restricted as
it has been in the
past.
// The demand for loanable
funds is still
very sizable

tax

Growing Canadian imports have

be

se

J.

With Blyth & Co.

Increasing Trade

likely lishment

will

with

Street, members of
the New York and San Francisco
stock Exchanges."

indirectly

influenced

\

FRANCiSco, Calif.-Gil-

non-Government investments

of the

,

}■.

/

-

Staff

to

sinking

be pretty
prices and

.

:

to

Montgomery

in¬

new

required for the industrial devel¬
opment, and subsequent demand

equipment

is

one

expected to

what

bert L. McCune has become affili-

™

are

capital

or

this

conflicting trends.

Barth Adds

dustrial-developments have affected Canadian
imports from the
United States. The United
States
is
often
the
source
of
directly

of

measure

(Special to The Financial
Chronicle)

ated

Likewise many of the

___D

and control of Canadian intry. This kind of institutional

these

all

to

,

per-

p

of

SAN

likely to be

maintaining and

try

through

.

•

how-

mass

communications

for

relations,

in

and

comes

course,

such

as

wait

larger companies in Canadian
preferences for that source. But
ustry
is
under
non-resident the
relationships go much further
trol gives us a
rough gauge of than this.
possible strength of some of
factors which

continental

going

settlement is
take any of the
pressure away from the
money
This condition will
most likely continue to
bring funds
into the short-term
liquid Government securities. A
modest amount
of switches for
tax purposes is
providing some volume to the
market.

fver, must be worked out in relation to our national aspirations,
particularly I suppose that a role of the statis-

their

equipment

draw upon.

Our

controlled

durable

is

fields

rapidly through the advertising

twork

ese

in

States

Treasureries is

implications

not

American designed
many
industries

in

Canada.

dustries,

to

of

have

notable

of
direct
investments
hich extends throughout our instry. The most favorably situed

United

producers

in the application

area

been

market.

'

automation"

has

interest in Government
securities./
The inflationary

•

-

market
very

selling being largely responsible for the
declines,
raising of quotations and some short
covering being re¬
sponsible for upward
price movements. Investor
interest in Treas¬
ury obligations seems to be
at a low
ebb, aside from the near-term
issues. The
attractiveness

capital
application of

the

on

small amount of
and the

fiscal
measures
different from those

which

Governments

light volume. It appears to
professional affair, with the
quoting down of

a

a

of

of

sources

effects

and

Government

much of

more than
be
For example, the

parent

and

on

By JOHN T.
CHIPPENDALE, JR.

owner-

spells and rallies

a

has

markets

of

cannot

mentioned here.

Reporter

by

of market rela-

other

are

Our

short -

or

affected

are
by non-resident controlled com¬ dian trade with that
country than
panies provide another means of formerly. In the case of Canadian connected with Canadian business
firms having no external
at least
finanmaintaining their position exports some 60% for several cial links. The
in Canada..
existence of poyears
have gone to the United
'
tential money flows in
either diStates market, and with
Whether the corporate
imports rection between
savings
of this group. of
/ subsidiary and
not
far
from 75 %
have :< been
companies are
parent
companies is a further
retained in Canada or are
trans¬ bought in that country.
;
factor ; keeping
the
Canadian
ferred abroad
Structural changes in the econthey are not at the
economy more open than is the
omy are
disposal of Canadians.
taking place which in case
They may
with
economies
in
which
affect either the size of
income many cases have been caused or such close
hastened by the non-resident inrelationships do not
flows in the future or the
debit
exist,
vestment and the investment de¬
balance on income
Recount in our
cisions
balance of payments. The
themselves
have
often
debit
Conclusion
balance of income account
greatly influenced the course of
has
In this
paper we have sought
Canadian development.
been
Original to draw
consistently
the
largest
attention to the extent
single source of Canada's deficit investment decisions are made by
and rate of recent
the non-residents who are
changes in
on
current
account
in
risking non-resident
recent
ownership and conlarge investments of capital. And
years.
And the deficit from
this
trol
of Canadian
the natural
industry and
and other current
thing is for them to the
account invis¬
degree to which these are
seek to integrate the
ibles has already become, so
investment associated
large with that of
with
the accelerated
the parent
that it would
enterprise. pace of Canadian
require very large
growth. While
Thus a criterion of interest
export
balances
on
lying Canada has
commodity outside of
gained immeasurably
Canada is likely to be
account in the future in
order to
|n speed of industrial
set up at the time of
developthe original
produce substantial overall cur¬
ment through
receiving advanced
investment in making basic decirent account
surpluses. It would,
industrial technology as well as
sions of vital importance to
of course,
require current sur¬
types of capital of which Canada
Canada.
pluses which were large
is
by his¬
deficient, the non - resident
Much of the
torical standards to make
developing role of controlled concerns in turn have
possible
Cainada as a supplier of
any large scale overall
industrial the
repatriaexceptionally favorable conion
of
ownership of Canadian ihaterials to the United States has ditions under which to become
industry and it seems likely that been due to the establishment of established in
security with prossubsidiaries or branches by United
here will be further
pects of continued
growth of
participation
States
on-resident investments
companies to
ensure a
in Canadian growth. The
through
resultsource
of raw materials.
e-investments of earnings.
Whole ing. closeness in
industrial; and
new
industries have been devel- other
economic interrelationships
Cumulative Aspect
oped
by United States
capital with the United States seems to
Looking ahead it is possible to whose sole or principal external be a unique feature of Canada's
market is in the United
ee a certain
States, recent
self-perpetuating asstage of development
And other parts of the
ect to the industrial
increased which deserves closer
structure
attention
exports to the United States have than it
hich has been described.
has been given.
It is a
But usubeen made possible
eans of
by the en- ally a price is paid for unusual
importing advanced inlustrial techniques under circum- largement of the capacity of the benefits
and
time
alone
will
existing industries controlled in
tances where financial
clarify what this may have been,
stringen- that
ies are no limitations. In
country.
In many ways the new
coming
structure
And
ecades
the
much
of
the
United
States
is
apparent of the Canadian economy which
kely to continue to be a centre growing Canadian tastes for goods *s taking shape has complemenof United
f industrial innovation.
States design can be tary
although contrasting feaAlready
e word on
to
the
everyone's tongue is \raced
important place tures to those of our neighbors,
,

23

resident atmos-

-

phere both for

ex-

changing

and

years

too

Prominent among the closer relationships with the United States
is the

made

are

is

of

mosphere in the United States.
Decisions to expand or
contract

lieve, still continuing to increase
firms
an

large provisions

And

the time and

lationships have

for

or

to

of

subject to attempt to

a

at

expansion

all

oarent

income of these

remittances

'■/.

Increasing U. S.-Canadian Contact

The

industries in which the

very

'

influence

Edison

Southern

Company;

Southern

Cali¬

TWA;

California

Ga3

Co.; Coca Cola; Southern Pacific;
RCA, and the Texas Company.

The Commercial and

Financial Chronicle... Thursday, August 2, 1956

(500)

24

exurbia which

Continued jrom page

3

The

Surround our cities, exist and be active.-The
is already most these is purchasing power

movement

first of
and the

Raising the Standard of Living ^

-

How'

this " increase ' in

does

5

but appears to be in second . relates to those , forces standard of living take place9 It
the earlier stages of its develop- which convert that power to pur- is ,not the result;, of-spontaneous
ment.
■chase into actual purchases.
combustion; it does not just hapsignificant

the error of
inadequate protection,
present basis of foreseeing in the next ten years any
certainty of peace. And it is clear
will again make

There is no

technology creates

that advancing

causes

are

many.

Crowded

increasing "Speed the obsolescence of existing weapons of
'

,

,

and Hying is the almost national acto be? ceptance of the five-day week.
Into how many households will
I have been puzzled by the lack
and more expensive war weapons
This means support to the econ- they be formed?
What purchas- 0f emphasis placed by economists
and it demands ever-chang¬
improving, more technical

war;

ing,

r

Of course, the potential of ;

/ By and large, purchasing power pen.

J

possessing

with

The

seek as services and goods to sat- traffic conditions and lack of is the result of wages that come unlimited human desires is alisfy their needs and desires bulks housing in the cities would rank from production and active em- ways present. Moreover, the so- three times as great as govern- high as reasons for decentraliza- ployment. Profits, pensions, and cial customs of our nation powerment expenditures, eight timesas< tion. ; But also responsible is the social security also - contribute fully promote the urge for better :
large as industry s annual capital system of superhighways that re- purchasing power. But these are and better living for American
investment.
v ,
:
ciuce so greatly in terms of time far less important than wages as men and women for themselves
The factors that relate to the the physical distances of the out- a source of purchasing power. : . arid particularly for their chilmen, women,: and children of a side areas.
.
„
There is, however,* anotner dren.
Y/;
nation are all important in its
gu* or0Kahiv chieflv resnonsi- Source of purchasing power that
However, to transform poteneconomy.
'
'
.for™the^ decentralization of is not directly related to produc- tials into realities, just as we use I

It is impossible to assume
that until we are certain of peace,
year

we

1956-1965

Dynamic Decade:

The

;

?!

How

many

children

are

women

men,

there likely

tion- This is the plan of installment selling that is presently
creating so much discussion. The
a Pr°duct upon an mstall-

research and highly technical im- :
proved methods for production, ;
so must we learn better how to '
sell better.; We must do a far

omy.

Support comes also from
it

aid-r-and

highways
Iij&iiwc^a

Our
UUI

this

appears

either spontaneously or

•

inadequate, persuasion?

are -■

B1WVV.
slow.

wu
too

and

to

auickened

elements in

obvious that as

im-

than thev were a genera-

nortant

firm

government expend-

become far more

have

Unros

in the

a giving down nique people.which we appeal to
small of a those with
.

promise to make future the entire
payments
until there is repaid

Not the force of these is the
least

,

education

until there ,is repaid the-entire represents. forceonly does it "edueducation Not that our press

purchase price plus interest.

Of course, in the long run when cate and influence by the "news"
It ig not the shorter work week the repayment of past debts which it presents and tne manner
inherent in the 40-hour week that equals the credit for new pur- in which it is presented, but the
is significant, but rather the in- chases, there is no addition to advertising which is offered to its"
crease 0f the "leisure time" in the
period from Friday afternoon to purchasing power. And if the readers will play a vital role not
creasing in population by nearly Monday morning that gives the repayment is greater than/the only in the volume of sales and
three milUon per year. The babies explosive force to the power of credit granted for new purchases, purchases of products but also in
™ho w?,re borP 1T) tne early for- consumption. It is during our so- installment selling may serve as a the cost of selling and even proties will begin to create their caned leisure rather than our deterrent rather than a stimulus ducing those items.
°wn
households and their own workjng time that we
require to the economy. > ■
' - The, guarantee > of an everbabies late in the fifties and early most 0f our consumer goods and
However it should be noted Quickening pulse of our producin '^.slx ies. If the present in- service3.
that very often installment pur- tlVe mechanism demands for
creased birth rate per family It is thjs long week-end that phases are made by people wh0 necessary maintenance
continues the /nnerican popula- makes country or suburban iiv. have th savi
sufficient to al- !on/ employment, and prosperity
tion trend of the next c^ecade will ing attractive to the father of the low them to make the purchase that »ere be.a continuous
experience a most significant ac- family. It has changed his rela- for cash. Installment buying or equivalent increase in the levels
celeration.
. ..
,
.
tionship to his family—even made fractional selling has become an of ">.rLSUrT;Ptl0"',,
,
Individuals consume food, serv- him an active if a bad cook. V
integral part of the American8 will not come tor the askices, and clothing./And the popu- .; It has meant new housing, new pattern of buying —and now it in£- Intensive and improved
lation probabilities of the sixties sewers, new electricity, new seems to be spreading abroad. In
niust be applied to eyery
promise to produce important roads,, and new schools. It has the United States, the device has aspect of the problems related to
growth factors in those segments promoted new shopping-centers been an essential factor In the the distribution segment of our
of our economy.
to service the family units and building of our huge mass mar- economy. There should be a more
of how
However, it is the household has launched a fundamental kets for large ticket items like realistic our economy works. Al¬
and valid understanding
rather than the individual that jChange in the design, of retailing. cars> television sets, appliances, though there should continue to
represents the most significant It Is changing the locations of In- and homes,
be. an adequate
appreciation of
and powerful consumer of goods dustrial plants.
-v."/
Currently there is concern he- the importance of production,
and
services.
The
telephone,
There has been a great deal of
f t^ j
j
f
installradio,
and
television are pur- debate and analysis related to the
debt This concern is natural tion that it also develop a realizathere must is the continuous flow
chased by the family. So are the effect
of nuclear energy upon ™nt
h'® eve^what renre- of goods into our mass markets
*
ear
and the home and
its fur- gasoline consumption.
May^1 ven- sents a proper ievei js not easily that * allows mass production to
mshings its modern kitchens, and ture the opinion thas there will determinabie.
But sureiy wbat maintain its delivery of low costs

However, starting in the iofties
that trend was reversed.
ently, four million babies are beinS born annually. We are in-

for the economy.

ionomv

.

declined^

the birth rate

ade),

growing population and the
patterns of living and
working. This also means support

changing

Tt

to Monday

afternoon

_
During the early part of the m0rning, ranks high indeed
be
of thirties (our one undynamicdec- economics of consumption.

xw,
c
Its pace must
meet the needs

our

our

Friday

-

.,

-

,

The transaction is consummated means to improve the sales tech-

its unmathematical dav weekend by the making the
result of the payment and of
and ' one-half

Undynamic Decade

Our

the five-day week, or ratner

V iwn

....

for building and
improving them appears too little
and our program

—

me>

through

.

......

......

.

„

continue.

and will

ago

.

Supported

Purchasing Power

have

sions,

the
of producand

particu-

past 20 years,

the

to

larly

past ten years, we
developed systems of penof social security and un-

in the

compensation. These
the existence of

employment
devices

assure

purchasing power even when the
participants are not contributing
production or receiving wages
therefrom. These elements of as-

ef-

also rep-

sured purchasing power

■«important > factor of
support to the consumption of
products and services; and they
contribute substantially to the stability of the economy." ;
However, more than stability is
resent

an

if

necessary

to

is

economy

an

Therefore,

prove
dynamic.
must determine

one
whether or not
the economic recipe for 1956-65
possesses
ingredients that, like
yeast, will create ferment and

impressive evi-

dence that family

formations will,

ten years has
impressive; and in

tures over the past

indeed

been

next decade, expertsignificant increase
with
that / increase
the

the

during
ence

a

very

—and

month since July, 1955 in¬
dollars on
capital investment than for the

every

dustry has spent more
same

products that are desired by those
households should have available

month of the previous year.

enlarged

Generally, three reasons exist for
increased capital expenditures by
industry:

As

a

industry from decentralization
r"®?1/rom, P^ear ener^y*
H 1S said that we, as a nation,
Hve
rubber. How much more
wilbthis be true with the greater
^
^
need of

credit

and

to

about

the

credit

„
reduction

in

to work, home to school home
to sb°P» and home to home. Mile-

^ases 'takes plaST^then!

if

increasingly educated to new and
better

products
there

for

research

capacity to create the products to
satisfy the indicated sales for fu-

a sum of
anni,oiiv

ture years.

moving by car
®
^

and: methods.
is being spent

within

country

our

spent

,

...

,

,

.

,

than $5

more
Snmp

nf

that

billion
fnnH

i<?

requirement

to learn to produce more
effectively so that labor can re-

the location of

ceive higher wages without pay-

plant
and also the machinery
equipment either to meet competition or to surpass competition in

ing
an
equivalent increase in
prices. Some of that fund is ex-

to

-

there

Second,

both

improve

of costs.

matter

de-

a

sirability of seeking new or additional locations to serve old or
new

the

better, to distribute

markets

risks,

to

and

tap

labor

new

markets.

Growth,

patterns

changing

of

living, and automation give every
evidence of promoting a continua¬
tion and even an increase of capitaL

by

expenditures

and

industry
movement

has

American
The

commerce.

been

evident

over

past decade, 1946-1955—which,
by the way, certainly was not
undynamic. However, there are

the

that

indications
decade

prove

the

be

to

over

same

even

forces for growth of

Economists

seem

pended
"

on

new

iiv-vv

materials

uiubvuuw,

new

designs, new products.

is indicated

there

Third,

a

,

.

..

the

is

the

factors

more

the
too

The annual sales volume of to-

day's

business

done with prod-

ucts that had no market ten years
ago

is impressive, if not stagger-

will

unquestionably

serve

the new if it does not replace the old.
And, above all, a most signifi¬

possess

may

often

to

as

stimuli to the desire of individual
persons and family units to replace the old with the new—or

needs and desires of the

neglect the men, women, and childrert who make Up the economy.

both

units

phenomenon

^

as

is

affecting

the

consumer

individuals and household

the fundamental

change

in

the living pattern that is taking place in the United States.
There has
developed
during

JL be f° b°*d aSto f^ggest the past decade decentralization
istence

only reasons for the exeither the economy or

of

the state
 are the people of whom
jt is composed.
And what they


reqmrernents for the family
upit: ,pr01?J}se,su ,to increase- wbat

proves

use
as

to

no

available

For
if
an
be a deterrent

consequence

a

those

use- of

for

tools

improved selling.
It is by in¬
action creasing
volume
through
im¬
to the proved sales technique that we

of credit by the consumer and
a

questione£fective

for

avoid

can

one

•

tbere is no equivalent and coin-

portion

of

our

Problems of inventory accumulaA1?1*/. H is by limiting »our pro

rapid growth of inventories would

^wn^hin nf6 a.Tlthlp dog the meadows/and convert
famiiy ownership of automotive prosperHy into recession.
/-Z

^

can

avoW^ie^the?3

^ avoid the other

^

!

^Th?^
holds i
^The decade m 1956-1965 holds.

-

transportation? At present, there PruJsPeiuy miu recession.
great promise and powerful poa**.50 million households and 50
con- tentials. However,, great promise
million passenger cars—one car st/uctively and critically the level and significant potentials can be
to each population Will this ratio of the How of credit. But it is iniured and even cancelled bv imhousehold. to households unwise, even dangerous, to look adequate management and inof car
increase?
To
the
degree
that only a^ one s*de of the economic proper control; It would appear
family J.:formations will 1 a ibenincrease, the
x
i__x
-ii be
automotive market

medallion (consumption)inn ni,.or indeed that the - _.chief economic
and fail
in f>nnnorn nnocolf xxri + h the otner problems xi x. i
i_ i
3 in
concern oneself with
that lie: ahead . : — the
next decade relate not so much to
opportunities but rather to what
we as businessmen and government officials that the plan of ment officials do to advance or

the extent that the (production).
\
ratio of car ownership per house- *' Moreover, it must never be forhold increases above one car per gotten by businessmen or govern-

eficiary.

To

family, there will exist a further

installment buying is basically a injure the prospects that appear
selling device—by fractionalizing so clearly to exist.
a total lar§e unit price into much
more easily digested small bites. With Mason-McDuffie Co.
It is an essential part of the
(Special to The Financial Chronicle)
bave a marked influence on the mechanism that has built the
BERKELEY, Calif.
Carter
PeHQleum industry.^The^ dimen- phenomenal which Americanmar- Collins has joined the staff of
domestic mass
sions of the likely effect have not kets
upon
in.

cant

potent

from home

production.

raise

The^ probabilTties~" aVe°that and very important factor of dythis experience will be repeated namics
for th^ automotive inin nart if not in whole in the next dH!irydecade.
The same element of increased
These new or better products radius in the areas of living will
ing.

next

economy,

and high wages and attractive
profUs
And there must be de.
veloped better tools and the more

.

x

(an|t longer) much more impact dangerous to raise serious conupon; the oil and the automotive cern about the level of consumer

markets for sales.
nation, we have become

Currently,

First, there is a need for more
.

should be clear is that it is indeed
,

of capital expendi¬

record

take place over the tiext deca

air-conditioning,

There is indeed

expansion.
The

comfortable

its

*

—

"
been

measured,

but

their probapossibili-

bilities offer interesting

ties, if not definitive conclusions,
It

would

certainly

appear

that

dustry and prosperity depend. In- Mason-McDuffie
stallment
buying
or
fractional tuck Avenue,

selling is one of the very important tools by which desire and

there are available for this next purchasing power are being condecade ingredients out of which verted into actual purchases and

Co., 2101 Shat-

Skaife Adds to Staff
(Special to The Financial Chronicle)

BERKELEY, Calif .—Donald A.

can hrew a _
potent potion, sales.
„
However, something more is
Fundamental to a growing con- Jacobus is - now .with Skaife
needed to assure the desired re- sumpti0n rate per person and per Company, 3099 Telegraph Avenue,
suit..
|
family fs the desire for a rising T; ' .*.
,: »
.
Necessary Conversion Factors
standard of living. This is the
Y^e

To * transform

economic

and force needed to accelerate

the in-.... Harriman, Assistant
...
Examiner of-the New-York

of the pattern of living and work* htimaruneeds and desires into the* dividual consumption • rate suffi-v- ^ , Bernard Ji
ing. American families are mov-- purchases necessary for employ-1 ciently to offset the almosf cer- Chief
ing to new areas in the nation ment, wages, sales, ■ and profits,' tain 3%% annual increase in the Stock Exchange,
and to the areas of suburbia and two factors of conversion must rate of individual productivity.
July 25.

passed away on

*

Volume il84'v Number5556

The Commercial and
Financial Chronicle

.v.

25:

(501)

Continued from page 9

.•

•

a

/

T-t\ ^ vV.^T ^

-

;

V,

;

mf*

-

v- r

T

** Y'"i

V

The tax • saving in this
case
planning has been made by the in¬
equals $31,100.
surance industry. Insurance
^
agents
/ It
should be recognized that so- have stressed for.
many years • in
called "death bed" gifts will not,
their sales activities the estate
be recognized and that the Fed¬
planning approach, using it with

~

regular'.program, contribute tb t&? v*
growth of
tive

.

eral Government extends for three

Its Tax
hands of so-called institutional in¬
vestors.

law

sizable estate, leads
that
there
is

Occasionally, limited by

but

tives

of

more

frequently by

prudence

and

ciary relationship,

the

$100

mo¬

fidu¬

conservative

a

funds.
;

of

this

plan

to

of

estates

.such

Federal

estate

tax

is

im-

impact and should
mitigate its effect. The

tate may be reduced
of any interest in

by the value
property which

passes or has 'passed from the de¬
cedent to

.the surviving spouse,
The gross estate includes
/limited to $50% of the adjusted
the-value <of all
property (except - gross estate.
real property situated
outside the
r: The
United StatesY-to the extent of
following illustration indi¬
the
decedent's interest therein at the cates the estate tax' impact on an
time of hisV deaths

estate which

Deductions o£

-

more

applicability
are^ expepses and -blaim^ against
the!

is entitled- to one

or

.

general interest -and

tions

of the .three

major deducpreviously discussed: mari¬

estatercharitablehequestei the tal^eductibh,' yan^

$60,000 specific exclusion* and the
marital deduetion. Wbilefthe
$60,000 personal

Mr, Smith died leaving a
gross
estate of $350,000. He
bequeathed
$25,000 to an exempt charity, and

exemption removes
large majority .of individuals
from the tax, it has
been esti¬

the

estate

mated

and

expenses

that

over

1,000,000

'

earn

$15,000

expected

per

to

people

year and

leave

-

be

A.

over

estates

If Mr. Smith were not

Adding
to
this
figure
having less income, but a

or

Allowable deductions and
exemption:
•1. Claims and
expenses-—
.__

3.

by

there

Charitable

gifts
Specific exemption

by

$20,000

the

primarily

considerable

instru¬

to

reflect

needs.

It is

tq outline

a;trust./
;

der

»•

\

will-r-knowri

a

tary trust-J-pi: by
agreement

means of

known

—

as

,

trustjor
the grantor of the trust in
special manner sets.aside Cer¬
tain property for
specific Jpurr
poses.
There, are a, number of
terms in general use in connection
with trusts. ;The creator
of the

;

estate

is

generally known

"grantor"

settlor."

or

to whom the

as

as

essentially
execution

20,000

-

The person

the "income bene¬

talk

position

*v-''

■

•.

----/--//.-.I'

r-Less other deductions and exemption:
Charitable gifts
'
$25,000

; ^ l.Specific exemption
Taxable

«s

----

taite v •-*

The

estate :tax: Saving in this
ease>represents $49;i00.K
'/
,
The Federal gift tax is imposed
primarily for the purpose of sup¬

free

.

plementing the

estate tax and to
restrict passing an estate tax free
,

avoid later estate

However, gift tax rates

substantially lower than

are

estate tax
"

iates^genei^ll^^%Cr^and^the
gift tax has :its

-

"

'$165,000
•

is

the

offer

Mutual

periodic

..

-

r

automatic

-a;.!A : /?.

\;r\.-

85,000 "• '

;

/1

reinvestment

of

,

been

completed, all
having been sold.

shares

The net proceeds

of

said
*

to be used

are

to

purchase inventories of drugs,
for working capital and
general
corporate purposes.
<
>

divi¬

.

.

-

cannot

be

revoked

A revocable trust
per¬
of substantial

the

grantor,

and

he

between

these

extremes

since the trust may be irrevocable

,.

for

period of time with the
thereafter reverting to

a

pus

-1 -———"

grantor

the trust

or

vocable

by

cor¬

the

becoming

the grantor.

<

A

re¬

great

allowances

by making the deal of the conflict in trust plan¬
gifts jointly with the wife. For ning arises as a result of an at¬
such joint gifts it is not
necessary tempt on the part of the grantor
that the principal come from both to obtain the tax
advantages of an
parties but only that both parties irrevocable trust while he still re¬
join in making the gift. :Thi? tains all or a part of the control
privilege may be thought of as the permitted by a revocable trust.
gift tax equivalent bf -a joint re¬
This has jbeen a rather rapid
turn on income tax.
run through of a. few of
7" - J
!
'
the fac¬
Inasmuch as gifts
during life tors affecting estate planning and

; b
gifts

of

($30,000 for

each

'

••

v-

certainly

-

gent

spouse)-.-.

'

annual

exclusion

of

$6,000

*

($3,COO for each spouse)

ter

ties

60,000

-

gifts

—

______

$120,000
0

after

$80,000

exemption,-.

Federal estate tax

on




$20,000

20,000
<

v

1,600

planning

emphasis

alert
in

and

and

relief

from

Mutual
and

funds

are

intelli¬

recent

years

in

The

the

estate

advantages
are

planning field.
of

a

numerous

they have drawbacks

burden

a

Tulane Tax Inst.

convenient

a

highly liquid investment

To Be Held in Nov.

for

transfer

during life or by testa¬
They continue to provide

ment.

as

Sixth

personal

trusts

for

were

cial

many years considered an instru¬
ment available only to the

their advantages
may be extended
all investors at low cost with
the use of mutual fund shares. We

the

have here

seven
simplified sample
utilizing mutual fund shares,
designed to cover some of the most

Perhaps
and

increase

professional
standing and ability and, com¬
petitively, will improve his posi¬

familiar

most

tion

in

respect
*

To
estate

conclude,
planning

to

widespread

approach

to

estate

La.

-

The

—

to

the

insurance

will

be

devoted

.

estate

we

feel

field

dealers

to provide
their

♦

an

The

and

and

Features of
include
two

will

program

timber, real

gas,,

farming.'

audience

mum

be achieved.

participation

:A'^v

-/

/

(Special to The Financial Chronicle)

;
'.

A

DENVER, Colo. — Robert G.
Campbell has joined the staff of
King Merritt & Co., Inc., 817 Sev¬

enteenth

Street.

Joins Walston & Co.
(Special to The Financial Chronicle)

DENVER,

Colo.

—

E.

Kenneth

Linscott has become affiliated with

Walston
Center.
.with

&

Co.,

Inc.,

Mr. Linscott

Boettcher

and

Mile

was

High

formerly

Company.

With Filosa Securities

:

(Special to The Financial Chronicle)

GRAND
Louis
with
407

JUNCTION,

Lawrence

Filosa
Main

is

Securities

Street.

Colo.—R. "
affiliated

now

offers

in¬

it

previously

practice

of

techniques may
impact of income,
estate taxes, providing

Company,

Mr.

Lawrence

with

Hamilton

Management Corporation and Co¬
lumbia Securities Company.

Joins Guss Staff
(Special to The Financial Chronicle)

GRAND

JUNCTION,

Colo.—

the

may,

by

an

individ¬

establishing

a

Mervin

E.

Bruce

has

become

g

•••-

King Merritt Adds

,

"

,

will

opportunity

planning

and
substantial savings to
or

the

increasing vital service

clients.

alleviate

ual.

that

■

.

:

'

panel discussions at which maxi-

was

*

.

to

agent.

gift

the

his

oil

as

estate

trusts

will

sessions

such

to

although
well, ard

steady increases in recent

ORLEANS,

Annual

partnerships,
corporations
and •'
problems of specialized industries"

wealthy,

vestment

years.

NEW

.

Tulane Tax Instiprofessional management for sur¬
tute will be held at the St. Chafes
vivors who, in most
cases, are in¬
Hotel on November 14-17.
The
experienced in investments. For
program will cover the business
trust investment
they offer a num¬
tax planning problems of C, P.
ber of advantages and economies.
A.%
attorneys and tax executives. SpeWhereas

coroorate

bank personal trust accounts have

ov' ;'v;.-'

investment

which

might
retired individual.

wider scope and bet-

a

durg.

.

tinued

problems

understanding of such activi¬

shown

Final gross estate at Mr. Jones'
death

more

advertising

trustee

tax

Greater

has led to

$60,000

estate

leading generally to trust

accounts.

lifetime

of

source

advice

^yyyj.

$60,000- against

/•exemption—- ■_

estate

*. ^ \'

dends for growth of
principal. The
professional management of such !
Seaboard Drug Co.,
Inc., with
funds must be of particular im¬
its office at 21 West 45th Street
portance to the individual
spend¬ New York, N.
Y., was organized
ing the major portion of his time in
Delaware on Jan. 5,
1956, for
on
his own job.
During the use the
purpose
of
acquiring
the
period
a ' number
of
plans are rights to certain
proprietary drugs !
available to assist the investor—a !
and engaging in /
marketing and
monthly dividend plan enabling
'/distributing them,, and partial- thim to budget
monthly, a with¬ larly
to
exploit
the
exclusive!
drawal
program
to
supplement right to sell "Mericin"
without V
retirement
income
by
planned prescription as a
pain alleviating
withdrawals of principal, and con¬

completed gift at its

a

and

by

promise

other

Net

has

ideally suited to sys¬
tematic investment! from surplus
income together with
easy
and

—_

Gift

;v■"!!!_'

,

$1 pe»
share, through Foster-Mann, Inc.,

fund

purchase

.

Total

r

.

commonly recurring estate plan¬
own
exemption. may be considered as coming from the instruments used. It is
perti¬ ning trust problems.
Major factors .of interest are the the top estate tax
bracket of an nent also to examine
progress in
J
In our mutual fund activities
$30,000 - lifetime/ exclusion;* the* individual,
sizable
tax
savings the field, its usefulness and the we
have, therefore, extended on
$3,000 annual, exclusion, and the may result from a
of modern practice of estate plan-,
program
a broad scale our estate
gift splitting privilege. It is pos¬ lifetime gifts. For
planning
example:.
ning and its effects. The technical service and
facilities.
A funda¬
sible, therefore, to make gifts of
Mr. Jones has a net estate worth aspects of the field
including the mental concept of this
$3,000 annually to any number of
approach
$200,000 which he wishes eventu¬ drafting of instruments has natu¬ has
been
that
the
investment
individuals tax-free, to: make extra.
ally to transfer to his son. In case rally devolved on the legal pro¬ dealer
is part of a service indus¬
gifts totaling $30,000 tax free dur- r
A below Mr„ Jones' son* receives fession. Many lawyers find them¬
try.
By offering service in the
ing life, and to double these tax the
entire estate by will or devise: selves in the position of
providing estate planning field, he is able
the impetus as well and
following to provide greater assistance and
through with advice and, in some benefits to his client
Gross estate
;
and, with
$200,000
cases,
assuming of the trustee's mutual
Net estate (after
funds, offer a flexible and
exemption)
140,000
position. However, not everyone
Federal estate tax on $140,000
convenient
investment
medium
Jhas
32,700
an
established
relationship for that appropriate part of the
with a lawyer and not all
lawyers estate.
A In case B below Mr. Jones de¬ advantage of his wife's
Aside from
the benefits
option to are equipped to handle estate
cides to transfer
by gifts the major
to the investor, the dealer
"may
the
portion of his estate to his son split
gifts,
the
planning problems.
tax
results
through this approach realize
during a ten-year period. Taking would be as
Bank trust departments are an¬ •more sales and
follows:
larger unit sales,

years

Mutual funds offer
many

three

programs

which is

one

may retain
the ability to regain
possession of the corpus. A rever¬
sionary trust constitutes a com¬

/»

'

60,000.

control

$$0,000
thereon-$15,100
- --—-

Federal ^estate fax payable

Ten

■

the

Offering Completed

Ayv-A Ay-

7

problem.

shares

Groups of Trust

mits/the retention

>*

330,000

jrJ, 165,000

Remainder

-/

,

beginning of
The public offering of
283,750
phases of a shares of class A stock of Sealiving estate plan—the growth pe¬ board
Drug Co., Inc., which was
riod, the use period, and the dis¬ made earlier this
year at

beneficiary."

Main

thereafter.

Outright

cli-

maximize

-

———

Adjusted gross estate-.*--.!--,,---....-__
Mairital deduction* (50%

tax.

to

,

Three

105,000

$350,000

—-

£ Less claims arid expenses.

through gifts to

Ay

I* mentioned at the

this

tjie

.

"ultimate

still

con-

Seaboard Drug Class A

succes$.!y.-/;|!A^4/^

v/i

ficiary." The principal of the trust
is referred to as the
"corpus." The

irrevocable trust

^

supervision

heavily on insurance, from .'.individual.
whigh they receive sizable com¬
missions.
Many of these firms
have; achieved considerable" size

'

income is to be paid

is referred to

will

investment

specializing in the estate investor can afford to neglect, and
planning field. .Generally,'these the two together offer a concerted
firms have developed from insur¬
program that will afford immedlance backgrounds and
continue to ate and continuing benefits to the

and

.

,

'

of firms

*

Although there are a wide vari¬
^ Fe$eral>estate tax payable thereon__^-_*«.
ety of possible forms, a trust
$64,200
agreement will generally be in¬
B. If Mr. Smith were married
one ~ of
wife, thus taking full advantage of cluded in
three -main
and bequeathed at least half
of the marital
--groups: (a) irrevocable,
deduction, his Federal
(b) re¬
his- adjusted gross estate to his estate
tax would be as follows:
vocable, and (c) reversionary. An

•

losses

an

.

$245,000

Gross estate

to

requiring adequate and

requirements necessary for
prudent investing.
Estate plan¬
ning offers techniques which no

.

Agreement
Taxable

of

and

lean

cases,

trust

benefits.

gains

tinuous

There has been in the last deca0e, the development of a number

living

a

contribute
mate

y

trust

a

*

previously in balancing in¬

come,

by this industry tend to lean
heavily upon insurance.
5 :'/

un¬

the

not eliminate taxes and the effects
noted

in

used

:

t

of

mitigate the tax effect, it does

may

of

by the

testamen¬

*as a

protection

degrees

the

growing im¬
professional or
institutional investor. While
they

most

investment

an

—

to

cases

portance

company.
Needless to
say, the estate planning techniques

be given
talents and

may be; established

this

varying

investing. Estate plan¬
techniques contribute in

ning
many

protection

death,

t)ie

with wise

insurance

by

appropriate, therefore,

„/

•

A trust

to

fixed income securities and
guar¬
anteed to a certain extent

conditions,

briefly the qualities of

provide

with

investment

may

individual

to

combine

aspect

ideally suited

and

care

of

term

of

us

by the growing complexity
and impact of taxes and also
by
the increasing
problems associated

policies.

premature

policies

gifts

Additionally,

spelling out terms

sophisticated

against

While
on

trust

ment is flexible and
to most ,:cases. •

or

25,000
60,000

has pre¬

as

limitations

trust,

sales

straight

on

designed

trust.

a

in

success

from

•

its effe^

Growth

field and its importance is
forced

11
should be realized in this context
that while insurance is

who receives the corpus
on termination of
jthe trust is re¬
ferred to as the "remainderman"

$350,000

•

of

means
are some

made

person

Gross estate

2.

mar¬

or did not take
advantage of
the marital deduction, his Federal
estate tax would be as follows:

$60,000.
those

subject, to claims
of $20,000.

was

ried

can

more

a-

expenses, and charitable bequests:

a

insurance

viously been mentioned, outright

tax

deduction available for this
purpose. In general, the gross es¬

posed upon the taxable estate of
a decedent
determined by reduc¬
ing the gross estate by various de¬
ductions and exclusions allowed

considerable

period in

:

Gifts may be made,

will

cant

by law.

•

avoid taxes.

deduction is
possibly the
useful strategy and
signifi¬

most

the

gifts may be said to be in
contemplation of death and to

over

that

death

which

marital

-

The

-

handling

billion

feel

before

years

to believe

us

considerably

attitude has been dominant in the

investment

Aspects

estate and

an

utilization.

af¬

filiated with Guss Securities Com-

and Financial

The Commercial
26

Net

would be a sizable in¬
in the above earnings pro¬

net effect

Pittston common.

But there are

other plus factors

as

to assets.

its entrance into Chicago* ;
Listed on the New York

^ y

Stock

to earnings but also as
On March 31, 1956, the

company

The

successful. Heretofore, almost exclusively a local
operation in metropolitan New
York
via the
company's U. S.
trucking subsidiary, the proposed
acquisition of Brink's nation-wide
armoured car system, now await¬
ing ICC sanction, if effected would
mean
an important short-cut for

1956 will

Forma

1952

on

the

common

stock

ly $400,000 in the past 18

months.

stock
outstanding, currently quoted at
about $66 per share.
The market
shares of $100 par common

value of the entire common

being therefore about $13.5
The total market value

issue

million.

and

(stock

securities

junior

4V2% bonds) is almost $29 million,
or
about 2V2
times the market

the

past year, I favor new purchases
at
the
present
level of about
54. The stock
is listed on the
New York Stock Exchange.

1954 1.04 times

Pro

1952 1.61 times

'56

the high yield (over 5%),

Shares of capital

stock

out¬

plus the fact that the First
legal for Sav¬

in the State of New

York, I believe them to be a

20,066,000
207,955

SAMUEL WEINBERG

the

ages,

and the favorable long range

$7,546,916
14,105,000

due 2029

,

earning cover¬

4s have been made

Mar. 31,

3.71

under¬

than ample

ings Banks

of investment stature

bond

with excel¬

price

ities.

4% bonds due 2004 present a most

timely and at¬
i

tractive

vestment

n

-

op¬

for
private, as

portunity

investor.

erbocker Investors
in

securities

a

fices

the

emerged
bank¬

ruptcy in 1954,

Officers

of¬

from

Drive.

Jack G. Quade, Pres¬

Richard O. Tufts, VicePresident, and Walter F. Pettit,

Secretary.

place.

LEE,

N.

J. —Sylvester
securities

business from offices at 420 Fairview

Avenue.

Mr.

Huffman

was

formerly with Oppenheimer & Co.

Adds

(Special to The Financial Chronicle)

LOS

vard.

owns

Minneapolis,

St. Paul &

a

ating

very

favorable

oper¬

recently
con¬
cluded, and although not really a
part of the "Soo Line," it is con¬
sidered, for all practical purposes,
as

Join J. D. Creger

agreement

its Eastern extension.

Wiscon¬

are

Avenue.




Compan'y, 215

&

.

West

'4

'

Four With Allen In v.

-

(Special to The Financial Chronicle)

DENVER, Colo.—Oscar S. Her-

rick, John D., Marks, Sterling
Marks and

Maurice L. Snider

H.
are

with Allen Investment Com¬

Mile High Center. Mr. Herrick was formerly with Greenberg, Strong & Co. Mr. Marks and
Mr.
Snider
were
with Shelley,
Roberts &

Co.

now

Creger

&

associated

Co.,

124

with

J.

period

D.

North Bright

nonintegrated mills which do

not produce steel

themselves but buy them from primary steelmakers for :
processing into products.
- : •
Warehouses are estimated to have a six-week supply of over:
all steel supplies, but there are a few notable exceptions—such as;.>:
heavy plates and structural shapes.
.
>
<
A "Steel" survey

taken among 130

nonintegrated mills shows v :

respondents have a 30-day or less supply
;
of steel on hand. The other 80% will be able to carry their cus- *:
tomers through the recovery period with a minimum of difficulty.
The scramble for steel, plus price increases certain to come,
add up to a frantic fourth quarter, the magazine said. The inflationary impact of* the strike will be felt into 1957. Another sig4
nificant effect will be on other wage negotiations.:^ Watch for; :
other metalworking unions to jack up their asking price.
The metalworking authority estimated the strike's cost to the.
nation at $1,118,000,000. The loss in steel product sales amounts
to $880,000,000; in steelworkers' wages, $200,000,000 and, in other
wages,. $38,000,000. •» • - ^w.. vv'*.v
;.'c
~:i
^;

that about 20%

-0-

of the

The American Iron

17.5% of capacity for the week
431,000 tons of ingot and steel

Colo.

—

Joseph

for castings as

17.0% of capacity and 419,000 tons (revised) a
The industry's ingot production rate for

was

annual capacity of
like week a month ago the

rate was 12.3% and pro¬
A year ago the actual weekly production
placed at 2,098,000 tons or 86.97%. The operating rate is not

duction

H.

compared with
week ago.
the weeks in 1956
128,363,090 tons as of Jan. 1, 1956.

to

For the

Inc.

announced that the"
steelmaking ' ->
average of _ beginning July 30, 1956, equivalent >

and Steel Institute

operating rate of steel companies having 96.1% of the
capacity for the entire industry was scheduled at an

is based on

Join Securities,

Bietler, Hale V. Davis, Jr., Leo J.

WHITTIER, Calif.—Charles A.
Derrick, Jr., Jean DeWees, Frank
J. Sarn and Gordon R. Wittington

sin Central Railroad is controlled

scramble for steel during the recovery

^

Franklin

DENVER,

Co.

(Special to The Financial Chronicle)

by the Canadian Pacific Railroad
thus gives Canadian Pacific

and

Samuel B.

(Special to The Financial Chronicle)

Sault Ste. Marie Rail¬

road under

>

V

J. Winder are now with

pany,

It is operated by the

Company

—

maine, Arnold Whitaker and Carl

now

J. Logan Co.

1,045 miles of "main line" track
running northerly out of Chicago.

The Wisconsin

Railroad

Calif.

Brophy, Edward J.
Cleven, Ted F. Conner, Richard
D. Johnson, Irving M. Kopf, Frank
E. McLaughlin, Genevra E.. TreF.

Seventh Street.

ANGELES, Calif.—Leon¬
ard G. Gover, Jack Hobbs, Mur¬
ray J. Rogoff and George P. Stefani have joined the staff of J.
Logan & Co., 2115 Beverly Boule¬

Central

ANGELES,.

Clement

;

.

Huffman is conducting a

have

taken

'LOS

Huffman Opens Office

important

events
W eiauei g

business

Huntington

ident;'

able and high¬

damuei

are

Calif.—Knick¬
Co. is engaging

favor¬

many

ly

2486

at

FORT

Since

from

MARINO,

the

as

institutional

road

SAN

17.5%

ingots

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

legal for Savings Banks in
New York
State, the Wisconsin
Central Railroad First Mortgage
Now

well

Buyers are set to

-

"Steel" magazine stated on Monday of this week.
It pointed out that it will take three to lour weeks for mills
to make a substantial comeback, so the big problem is to fill the
pipeline for users' until then.
Two-surveys made by the metalworking publication la^t week
indicate that while purchasing agents are standing in line for steel
at the mills, demand will be partially met by stocks on hand.
It said a survey of metal users disclosed that it will take .?
almost one-third of the respondents 30 days to get inventories
back to the pre-strike level.
Twenty-five per cent expect to re-'
:•'< build inventories in 30 to 60 days, 19% in 60 to 90 days and 14% 7
say it will take more than 90 days. Twelve per cent do not intend'
to build back to pre-strike levels.;
•
;•./
'!
Until mills make the comeback, metals users will depend on v
what they have ~bn hand or can get from warehouses and what

With 'Samuel B. Franklin

Knickerbocker Investors

Wisconsin Central Railroad Company

Chrysler Corp.'s divi¬
while such action by

after the strike,

they can get from

New York City

the

conclusion of this week.

'

appreciation possibil¬
V.S'-V

lent

Partner, S. Weinberg & Co.,
^

at the

Steel Production Placed This Week at
Of 1956 Capacity

more

Outstanding

4X/2S

prime

the

lying position of the mortgage,

Capitalization

Income

Forma

run

"Ward's," United States car builders had.
and 673,800 truckfc in Calendar 1956 com¬
and 750,800 trucks through the compar¬
able week a year-ago. Automobiles are accounting for 84% of total
vehicle production this year compared with 87% in 1955.

4,36

Considering

Thursday and on

Through Friday, said

0.25

1953 1.73 times

look

Equipment obligations
First mtge. 4s of 2004

%

Forma

stock

*

pared with 4,917,700 cars

5.49

1955 1.88 times

Pro Forma

Pro

Division::which closed plants the past

;

turned out 3,598,000 cars
Pretax

furthermore, 207,955

There are,

.

Margin
Safety

Coverage

Reported

%
.
I
publication the past week was

sions will all halt activity next month,
various Ford Motor Co. divisions appears imminent.

attractive "buy" around

Income 4t£a

his retired approximate¬

company

model

current levels.

these bonds
has been earned 1.88 times and the

of

an

the statistical

Although through Friday no companies other than Packard
had ceased 1956 model making, August will be spotted with shut¬
downs. American-Motors, for one, is expected to end its current

2029)

The interest on

sue.

Chrysler
Friday.

1.88 times with a

to be

rise value of the senior issue.

over

;■

Railroad 4X/2S due 2029 also seems

of

present aggregate market value

long-term

to substantiate the price

3.25

due

-

113,416

3.60

4V2S

~

by

production of 112,013 cars and 21,397 trucks compared with
and 21,706 last week.
Although all other companies scheduled production increases
over last week, "Ward's" noted, Chrysler Corp. output fell to 16,000
cars from 18,200.
Causing the decline were a strike which has
idled DeSoto since. Tuesday a week ago and a lack of parts at

2.16

Railroad

was

mortgage debt.

Chrysler Division in

Estimated

3.90

9.78

$15.2 million, $4.5 million in ex¬
cess of the underlying senior is¬

appear
brilliant and,
current
operations
alone

seem

76

around

prospects
since

„

:

automotive industry a

total of 430,100.

in 1955
margin of
is
currently
selling safety equal to 5.49% of gross
The Wisconsin Central
and therefore has a revenue.

Exchange

>

and

'

-

strike at DeSnto and a narts
Detroit were responsible for a
shallow drop in car production last week.
However, "Ward's Automotive Reports" said on Friday of last
week that the industry would hit its July car production target
dead center with 450,000 completions, or 4x/2% more than June's
the

In

shortage at

(Pre Ttax)

10.30

issue, also
York Stock

New

the

$7,500 or more had

First 4s Due 2004

6.82

This

2029.

due

position is satisfac¬
equity financing is
expected despite the large capital
expenditures
required by coal
mine expansion.
Dividends "will
likely continue to include a 5%
annual
payment in stock and
there is a strong possibility that
the $1.20 yearly cash rate may be
increased again later in the year.
Interim
period
earnings will
make
highly favorable year-toyear comparisons and the small
normal dilution
from preferred
stock conversions should not be a
noticeable factor.
In short, the
near-

.

Mortgage

Income

bonds

no

company's

of

Allowing for all prior charges,
Railroad
20 million pretax coverage of interest on the
4V2% junior issue (Wisconsin Central

junior issue of

a

General

Financial

and

is of the instalment
those surveved reported
instalments.
personal debt more
frequently than spending units at other income levels, the survey
noted, while a large proportion of consumers in income brackets

type, the bulletin 3£l&ed. About 45% of all
they had some ireiiil'ar weekly or monthly
Persons making $3,000-$7.500 a year owed

The Wisconsin Central
has

general
national

listed

tory

11.73%

personal obligations outstanding. One-fifth of those

surveyed owed prij&p automobile.
Most of the* personal debt outstanding

T'mes Int. Earned

$30,385,000
28,825,000
31,873,000
21,205,000

1953

Pro

basis.

of

Forma

37% had only

the First 4s for

on

% Gross Saved for
Int. &, Fed. Taxes

Gross

Reported___1955
Pro Forma 1954

reporf>bf the Federal Reserve Board disclosed that
all fafhjlies were in debt early this year.
About 9% oweC-on mortgages alone, tl^p board's July bulletin ^
said, while about 17% owed mortgage and personal debt and about
recent

A

earned at least four

be

•/

,

about 63% of

times over!

have been very

Pro

interest

that

of steel

shot up p
Industrial scrap was bid

consuming areas.
in some centers. The upsurge anticipated
strong mill demand for steelmaking furnaces to speed production
pending resumption, of'hot metal production by blast furnaces,
this trade authofity^concludes.

(a discount of

about 78

got and can threaten shutdown
captive pits to enforce their demands.
market is literally running wild. Prices

scrap

again in virtually all
higher than pig iron

and

Exchange

upward leverage on consin Central Railroad (about
Trucking activi¬ $5.5 million) represents about 50%
though
relatively
minor, of the market value of all 1st 4s.

expansion of Pittston's
trucking business on a

1956

*3

the steelworkers

to what

reported
equity in
equipment,
after deducting both normal and

important

"

,.4v"';' £■>,:

only well pro¬

not

is

bond

tected

future earnings.

ties,

Chronicle... Thursday, August 2,
'"ST,/.*

March Continued from page

working capital as of

currently selling quick depreciation, was $17,509,22% from 309 or 121% of par value of the
par), this senior issue offers in¬ First 4s.
in the Pittston equation. The non- vestors
a
handsome
return of
Working capital combined with
coal subsidiaries, though less dy¬ 5.13%. The 1st 4s are extremely
equipment equity was 168% of
namic,
provide
an
important, well secured as to protection of value (at par) of the First 4s. The
gradually rising earnings base principal and have always had issue is outstanding at the low
and interesting long-range possi¬ more than adequate coverage of
rate of $16,400 per mile, a figure
bilities. Pittston, in enlarging its the annual fixed charges on that
far below the average of all rail¬
oil distribution business over the principal.
roads in the United States ($33,This issue is outstanding in the
past few years, has become the
400),
The sinking fund of the
country's largest independent bulk comparatively small amount of First 4s is small ($73,535 a year)
purchaser of oil, distributing at $14.1 million par value; At the and
depreciation
charges
take
wholesale nearly 40 million bar¬ prevailing price of 78%, the ag¬ care of the property replacement
rels annually.
While margins on gregate market value of the entire fund. The company has retired
this
business
are
slim,
profit issue outstanding is less than $11 approximately $685,000 in the past
spreads have been rising. Fur¬ million. The total assets of the two years.
are
thermore, the
company is now Wisconsin Central Railroad
The aforementioned facts speak
concentrating on the consolida¬ approximately, $69 million.
The market value of the 1st 4s, boldly for themselves in attesting
tion of the many acquisitions in
to the remarkable safety of the
this area. Operating profits should therefore represents only slightly
bond. On the basis of projected
benefit, and relative to the large more than 11% of the total assets.
earnings for 1956, it is estimated
volume handled, this could exert The net current assets of the Wis¬

jections for the
•

4%

Like Best

The Security I
crease

.1

..

31, 1956 was $6,793,423 or 47% of
the value (at par) of the 1st 4s
outstanding. :The First Mortgage

from page 2

t Continued

n

■

>*.

(502)

302,000

tons.

comparable because capacity is
percentage

figures

125,828,310 tons as

higher than capacity in 1955.

for 1955 are based
of Jan. 1, 1955.

on

The

annual capacity of

McCarty, Harold J. Miller, Carl T.

Siegfried,

and

Roger S. Whitaker are now

with

Pilgrim,

Paul

Securities,
Building.

F.

Inc.,

Farmers

Union

Electric Output Shows Further
In the Latest Week
of electric energy

distributed by the electric light

industry for the week

ended Saturday, July 28, 1956,

The amount
and power

Expansion

Volume 184

Number 5556

...

The Commercial and Financial
Chronicle

(503)
was

estimated at
Electric Institute
This

was

kwh.,

according

to

the

Edison

and
to

1955 week and

2,156,000,000 kwh.

the

over

soybean futures

on

the

Chicago Board of Trade last week

like week

wheat bakery flours

Car

.

Latest Week Advance
4.6%
Notwithstanding Steel Strike
revenue

freight for the

covered for rather limited
periods.
to firm in moderate

trading.

week, and

decrease

a

of

35,789

sponding week in 1954,

Demand for lard was
irregularly higher. Steer prices advanced

.

.

*

industry assembled

compared with 113,416 (revised)
week's production total of cars

units,

a

\

.

1

.

•

Chambers
United

sharply toward the close

hogs

14

spot markets

were

output dropped below that of the previous
week by 1,403 cars, while .truck
output declined the past week by
S09 vehicles. In the
corresponding week last year 161,370 cars
and 26,108 trucks were
assembled.
;A,
i.

compared with a daily rate of
35,697
the corresponding 1955

Changing

i

.

,

.

21,706 in the previous

week and 26,108 a year ago.

vious week.

Fund,
per).

'

,

.
*

.

Commercial and industrial failures climbed to 274
in the week
ended July 28 from 223 in the
preceding week, Dun & Bradstreet,
Inc. reported. At the highest level in six
weeks, the toll consider¬
ably exceeded the 201 in the similar week a year
ago and the' 195
in 1954.
However, failures remained 6% below the prewar level
of 291 in the
comparable week of 1939.
'
;
Failures involving liabilities of
$5,000 or more increased to 225
from 189 last week and continued above
the 160 a year ago.
Among small failures with liabilities under
$5,000, there was a
mild rise to 49 from 34 in the
previous week and 41 in the similar
week of 1955; Twenty businesses failed with
liabilities in excess

.

*

*
'

nine

major geographic

regions reported

an

following percentages: New England, Middle West
and Southwest
0 to. +4; East +2 to
4-6; South and Northwest —1 to

+3 and
Pacific Coast -f 1 to +5%.
A
Cool weather slowed the sale of
air coolers and fans in
many
areas last week.
The volume in television
sets and .major appliances was somewhat reduced.
Consumer response to
reduced-price
sales of metal lawn
tables and chairs was
favorable, but best¬
sellers ih furniture were
upholstered living room chairs and bed¬
room sets.

;

at

v

July 24.

,

7

reported in sportswear, acces¬
toiletries. There were substantial
gains in the buving
dresses, skirts and sweaters. Retail stocks of
men's Sum¬
mer sportswear and
lightweight suits were limited and sales were
Under those of the
preceding week.
Grocery stores reported an appreciable rise in
the call for
canned fish, frozen
juice concentrates and baked goods the
past
week. Popular dairy
products were ice cream, butter and

in-

eggs.

Volume in fresh meat and
poultry
The

unchanged.

was

volume

of wholesale orders
expanded
week and remained above
that of last year.
a

high level, buyers

Department stores sales

moderately last

were

more

Federal

Reserve

For the four

were

in

Fall

country-wide basis

index

of

the

week

taken from

as

ended

like

July

21,

In the

year.

amount

was

weeks ended

July 21, 1956 an increase of
3% was reported. For the
period Jan. 1, 1956 to July 21,
1956, a
gain of 4% was registered above that of
1955.

week,

cents last

At the

highest level in five
drop of only 1.5% below
\

Cooler weather and store
promotions lifted retail sales
volume
for New York
City the past week from 4% to
6% above the like
period a year ago, trade observers
report.

According to the Federal Reserve Board's
index, department
store sales in New York
City for the weekly period ended
July 21,
1956, registered an increase of 9% above those
of

<

last

„

sum

In

year.

4<v;

(revised)

the
wps

preceding week, July 14,
recorded.

For

1956, a gain of 7% was recorded.
July 21, 1956, the index recorded
corresponding period in 1955.

the like period

1956,

an

increase

the four weeks ended
For the period Jan.
a

rise of 4%

of

July 21,

1, 1956 to
above that of the

A

Dun

&

fluctuated in
compared

a

narrow

with

286.87

corresponding date

a

wholesale commodity price index
range and closed at 286.48 on July 24. This
week

year ago.

previous

and

with

274.80

on

trends in leading grain markets
generally firm the greater part of the
reaction at

some

mixed.

were

week

but

Values

there

was

the close due to

and favorable
crop

heavy receipts in cash markets
growing weather.
,

A

the

sharp rise in wheat early in the period was
influenced by
Department of Agriculture
announcement
of the
previous

week
.

that

stocks

wheat

rather

Sept. 4.
in

erable

for

from

„•

With
firm

sales

than

a

most

export

would

yield

markets.

drawn

government-owned

._A-

smaller

be

indicated,

.

,

rye

'

from

wheat

with

relatively

Jr.

has

Sixth

Fenner &

a

magazine

become

Street.

He

connected

was

NEW

reviewing

is

pany,

V

subscription' $6.70;
$11.05 — Oriental

Postwar
A

Changes

Unemployment

;

with

Sheffield

&

Com¬

the

John Melcher

of

Gerard

R.

Jobin

Melcher, partner in Dick
Merle-Smith, passed away July
at the age of 61
following a

brief illness.

trial

T.

Wermel

North.

—

Indus¬

Relations

Section, Cali¬
Technology,
Pasadena, Calif, (paper) $1.
fornia

Public

Institute

Control

terprise

—

Richard
Hill

■

of

of

Economic

Harold

W.

Book

En¬

Koontz

Gable

—

and

McGraw-

Company,

Inc.,

330

West 42nd Street, New York
36,
N. Y.—$7.

;

of

struction

.

of

Bank

'

*

A

-

Retention

and

De¬

Records

—

Pennsylvania Bankers Associa¬
tion, Box 152, Harrisburg, Pa.

AA;.;—$1.50-A,.'; A
of

Education

and

Ex¬

perience for Certified Public Ac¬
countants— Bureau of

Business

Research, University of Michi¬
gan — University of Michigan
Press, Ann Arbor, Mich, (paper)
$2.50.
There's Safety in Numbers—Book¬
let describing order control sys¬
tem

to

assure

shipment

—

billing for every,
Cummins-Chicago

Corporation, 4740 North Ravens^
wood

Avenue,

Chicago

40,

IH.i

Trends in Equipping the American
Worker — Council for Techno¬

logical Advancement, 1200
Eighteenth Street, N. W., Wash¬
6, D.

C.

(paper). Single
additional" copies

free;

/A

A/

.

.

*

(Special to The Financial Chronicle)

MIAMI

BEACH, Fla.-^John M.

of

First

Southern

Corpora¬

tion, 350 Lincoln Road.

Wm. R. Staats Adds
(Special to The Financial Chronicle)

to

Harry G. Fraser

In¬

Harry
away at
a

vestments

Ex-

perience 1946-1950 to 1951-1955
—Michael

staff

John

PETERSBURG, Fla.—David

staff

California

Insurance

Charles R. Braxton and
William. F. Ward have joined the

(Special to The Financial Chronicle)

consid¬

in

:

Bowler,

&

added

airmail
Economist,

Nihonbashi, Tokyo, Japan.

B.

325 State Street.

for¬

Beane.

Dupre, Jr. has been

business

Join First Southern

LONDON, Conn.—Earl

Hick

27

L.

Monthly

—

and economic conditions in-Ja¬
pan and the Far East—annual

(Special to The Financial Chronicle)

Calif. —Brice

Gerard Jobin Adds
ST.

were

ANGELES,

merly with Merrill Lynch, Pierce,

A

prices

New

With Sheffield & Co.

Hemphill, Noyes & Co., 510

West

"free"

increase but producer
marketings of corn remained very
meager. Corn and soybeans made excellent
progress under gen¬
erally favorable weather and
crop conditions^ Purchases of grain




LOS

beginning

New crop receipts of oats showed

Hemphill, Noyes

(Special to The Financial Chronicle)

Toole,

.

Price

.

the

,

;were

Joins

daily

a

Edison

—

A;

/Economist

25c each.

movements were very irregular last week.

Bradstreet

(paper) $4.

ington
copies

Lower Trend the Past Week

Commodity price,

N. Y.

Oriental

Standards

on a

Board's

interested

1956, increased 2% above those of the like
period last
preceding week, July 14, 1956, an increase of

Wholesale Commodity Price Index Held to
Irregularly
.

••

Schedule

Although re-orders for Summer apparel and
furniture
at

sustained

merchandise.

total of the price per
pound of
31 raw foodstuffs and meats in general use and
its chief function
is to show the general trend of food
prices at the wholesale level.

The

„

sories and

of Fall

weeks, the current figure represents a
the
corresponding 1955 index of $6.17.
Higher in wholesale price the past week were
wheat, rye,
barley, beef, lard, sugar, coffee, tea, cocOa,
eggs, potatoes, raisins,
steers, hogs and lambs. Lower were flour,
corn, oats, bellies, cot¬
tonseed oil, beans and peas.
The index represents the

.

previous
rose

Institute

University Press, Wash¬
ington Square, New York 3,

Consumer purchases of women's
Summer apparel continued
high level, with sizable gains

a

reported.

of the
the Dun & Bradstreet wholesale food
price index
to stand at $6.08 on

Scientists

York

,

the

week

t

of

Proceedings of

—

Thomas Alva

Foundation

by the

Wholesale Food Price Index Records
Highest Level
In 5-Week Period
movement

Sixth

*

,

crease.
Most of the week's rise occurred in the
Middle Atlantic
States where failures climbed
sharply to 108 from 59 and in the
New England States with 19 failures as
against 10 a week ago.
Slight increases were reported in the South
Atlantic, West North
Central and Mountain States. Failures
declined during the week
in four areas,
including the East North Central Region, down to
29 from 39, and the Pacific
Region, down to 63 from 66. More busi¬
nesses failed
than last year in all except two
regions, the East
North Central and East South Central
States.

,Reversing the downward

Shortage

and Engineers

the

comparable 1955 level.
dollar volume of retail trade in
the period ended
Wednesday of last week was unchanged to 4%
higher than a
year ago, according to estimates
by Dun & Bradstreet, Inc. Re¬
gional estimates varied from the
comparable 1955 levels

18. In con¬
among wholesalers dipped to 18 from 24 last week
and was below the 1955 level of 20.
All other lines reported more
failures than last year.
- ■the

Growing

year-to-year

The total

trast, the toll

of

Research, College of Commerce,
West Virginia University, Morgantown, W. Va. (paper).

on

of $100,000 as compared with 12 in the
preecding week.
;■
All industry and trade
groups except wholesaling had higher
failures during the week. The toll
among manufacturers jumped
to 55 from 25, while retail failures
rose to 136 from
124, construe*
tion to 40 from 32 and commercial service to
25 from

Five

moderate

-

Monetary
C. (pa-

Washington, D.

James H. Thompson and Thomas
S. Isaack—Bureau of Business

While sales in new automobiles
decreased slightly, consumer
interest in used passenger cars
expanded appreciably; total auto¬
mobile volume continued
under the

Business Failures Rise to
Highest Level
In Six-Week Period

c

reported

1

.

Inter¬

Factors Influencing Plant Location
in West Virginia, 1945-1956 —

in

pre¬

However, retailers

gains.

of

report—International

Although numerous mid-Summer clearance sales
encouraged
consumer buying of
Summer apparel, outdoor furniture and house¬
wares last
week, total .retail volume fell below that of the

Canadian output last week was
placed at 9,550 cars and 2,156
trucks. In the previous week Dominion
plants built 9,313 cars
and 2,513 trucks, and for the
comparable 1955 week, 10,095 cars
and 2,187 trucks.

Environment

Exchange Restrictions—7th annual

Trade Volume Lower the Past
Week But Registered
Moderate Gains Over 1955 Period.

,

York, 65 Lib-

jor Problem of American For¬
eign Policy — Brookings Insti¬
tute, Washington 6, D. C. (cloth)
$2.50.

period.

Last week the
agency reported there were 21,397 trucks made
in the United States.
TJjis compared with

in

national Relations, The—A Ma¬

..

,

the

(paper) $1 per copy (quantity
prices on request).
A./v/)Vf'-A;A.\

up

bales in May and 33,977

in

those

f; erty Street, New York 5, N. Y.

sharply
318,100 bales, compared with 34,800 in the
preceding
week and 46,400 in the
like week a year
ago.
Consumption of
cotton during the June
period, as reported by the Census Bureau,
totaled 812,330
bales, or a daily average of 32,493 bales. The latter

car

Commerce

the State of New

closed

steady to firm;.
five-day period since last

a

of

States—List of

all cities of 5,000 population and
over—Chamber of Commerce of

.

Reported purchases in the

»

t

'Na'-

and

■

and totaled

states "Ward's."
*

Butcher

the smallest for

dealer

program,

112.013 cars,
in the previous week. The
past
and trucks amounted to

133,410
decrease of 1,712 units below the
preceding week's output,

Last week's

demand.

were

of

Bearish influences included
generally favorable advices on
the growing crop, and news
that the Department of Agriculture
did not intend to
change the structure of the cotton export
subsidy

estimated

an

ago.

improved

Avvi A;

lack

a

cocoa

.

•

Last werk the

note

Cotton prices continued to trend
downward and closed sharply
lower than a week
ago.

Automotive output for the latest week ended
July 27, 1956,
according to "Ward's Automotive
Reports," dinped slightly due to
a strike at De
Soto and a parts
shortage at Chrysler Division in
Detroit.

year

September.

and

..

1

a

under

Mildly Affected by DeSoto Strike
Chrysler Division Parts Shortage

*

A-.

firm

a

declined slightly
as compared with 247,582
active and prices worked

420,722 bags,

Swine receipts

U. S. Car Output

011

Av.'AV'AA AA

Cocoa prices drifted lower
reflecting
manufacturer demand. Warehouse stocks
of
for the week and totaled

bags

AA-A-A

buying of Columbian

milds.

below the
corresponding
cars, or 5.2% under corre-

Order

buyers

Raw sugar prices were steady
'.A'. AAA-

Coffee was somewhat irregular but
closed
aided by a slight improvement
in roaster

week ended

July 21, 1956,
which were affected
by the steel strike, increased 28,500 cars or
4.6% above those of the
preceding week, when they were affected
not only by the steel
strike but also
by one day of the coal miners'
annual vacation, the
Association of American Railroads
reports.
Loadings for the week ended July 21,
1956, totaled 648.492
cars, a decrease of 133,416 cars or
17.1%
1955

;

was extremely
slow the past week.
backlogs in soft wheat flours showed some
expansion as

Loadings in the

Loadings of

rose

a

daily average volume of about 61,000,000 bushels from
57,000,000 the previous week and
52,300,000 in the same week last year.
As a result of recent
heavy purchasing whiflf most bakers
and jobbers covered their needs
for some time, demand for hard

increase of 170,000,000 kwh. above that of
the
It increased
568,000,000 kwh. or 5.3% above the

an

previous week.
comparable
in 1954.

11,295,000,000

27

Ltd., 242 Beach Drive,

short

Gordon
the

age

illness.

senior partner of

Fraser

of
Mr.

71

LOS ANGELES, Calif.—Charles

passed

following

Fraser

was

Fraser, Phelps &
Co., Providence, R. I.

F. O'Connor has been added to

staff

of

William

R. Staats

&

the
Co.,

640 South Spring Street, members
of the New York and Los Angeles

Stock Exchanges.

Ttye Commercial and Financial

y-

V" <■'

iv;

(504)

28

Chronicle.,. Thursday, August 2, 195S
/ "a- 5

';v

ADDITIONS

* INDICATES
SINCE

Securities Nojy in
•

Abie Mining

Co.

(letter of

July 2

notification) 300,000 shares of common
Price—$1 per share. Proceeds—
Office—7119 E. Camelback Road,

(par five cents).
For mining expenses.

stock

Scottsdale, Ariz. Underwriter—The
York, N. Y.
Abundant Uranium, Inc., Grand

Fenner Corp., New
Junction, Colo.

of

(letter of notification) 3,000,000 shares
com¬
mon stock (par one cent).
Price-r-10 cents per
Proceeds—For mining expenses.
Office—319 Uranium
Feb. 23

share.

Underwriter—Ralph M.

Center, Grand Junction, Colo.
Davis & Co., Grand Junction, Colo.

Supply Mfg. Co., Inc.
(letter of notification) 103,903 shares of common
stock (par $1) being offered to stockholders on a basis
of one new share for each 4 1/6 shares held as of July 23;
Aero

June 4

rights to exoire Aug. 13. Price—$2 per share.
—For relocating machinery and equipment in

Proceeds

plant, ad¬

ditional equipment and working capital. Office —
Main St., Corry, Pa. Underwriters — Henry

West

611

M.

directors of the company.
(Louis) Co., Milwaukee, Wis.
filed 47,729 shares of common stock (par $10)

Margolis and Leo A., Strauss,
ASlis
29

June

being offered for subscription by common stockholders
of record July 18, 1956 at the rate of one new share for

rights to expire on Aug. 6. Price
—$38 per share. Proceeds—To repay bank loans, and for
expansion and working capital. Underwriter—Robert W.
JBaird & Co., Inc., Milwaukee, Wis.
; ,

each five shares held;

ft American Buyers Insurance Co. of Utah
July 13 (letter of notification) 10,000 shares of common
stock to be offered to policyholders, unsubscribed shares

Directors, or other
Price—At par ($10 per share).
Proceeds—For initial capital to convert corporation from
a
mutual benefit insurance association to a stock legal
reserve life insurance corporation.
Address—P. O. Box

will

be

purchased by the Board of

salesmen and employees.

Underwriter—None.

247, Salt Lake City, Utah.

Inc.
3,000,000 shares of com¬
cents per share). Pro¬
ceeds — For organizing and operating a racing stable.
Office—^Yirginia and Truckee Bldg., Carson City, <Nev.
Underwriter—Columbia Securities Co., Inc. of California,
AmericanHorse Racing Stables,

May 11 (letter of notification)
mon
stock.
Price—At par (10

Beverly Hills, Calif.

-

.

•

y

•

..

.

...

Development Co.
JFeb. 10 filed 400,000 shares of common stock (par $1).
Price 'J* $2.50 per share. Proceeds —To expand service
business.
"Office — Birmingham, Ala.
Underwriter —
American Insurors'

*

,

Birmingham, Ala.
Nashville, Tenn.
July 13 filed 4,962,500 shares of common stock (par $1),
•of which 962,500 share are to be reserved for the exercise
of options by company employees and 4,000,000 shares
Odess, Martin & Herzberg, Inc.,

*

American

Investors Corp,',

Price—$2 per share. Proceeds
—To purchase all of the common stock of American In¬
vestment Life Insurance Co., to be organized under
to be offered publicly.

are

Tennessee law.

Underwriter—None.

Amphenol Electronics Corp.

,

-

V

-

(8/14)

•

"

July 23 filed 120,000 shares of common stock

(par $1),

York.
Seattle, Wash.
April 20 filed 5,703 shares of common stock; $2,000,000
of 25-year 5% registered convertible debenture notes;
and $1,500,000 of 5% coupon bearer bonds. Price — Of
stock. $50 per share; and of notes and bonds, 100% of
principal amount. Proceeds—To reduce bank, mortgage
loan, or other indebtedness; and for working capital.

Reynolds & Co., Inc., New

Associated Grocers, Inc.,

Underwriter—None.

Tulsa, Okla.

Atlantic Oil Corp.,

April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For working capital
and general corporate purposes.
Underwriter — To be
named by amendment.

Pa.
sinking fund debentures
shares of common stock
cent) to be offered in units of $50 of debentures

July 30 filed $8,000,000 of 5V2%
due Aug. 1, 1971, and 1,600,000

$600,000 of 6% convertible subordinated
debentures due June 15, 1968. Price—100% of principal
amount. Proceeds—To retire indebtedness of the com¬
filed

11

(par one
10 shares of stock

Blauner & Co., Inc. of New

ately transferable until Aug. 1, 1958). Price —
unit. Proceeds—About $4,100,000 will be used to

,

1

*

►

-

*

'

'

."

,

tional 300,000

Bahamas Helicopters,

_

—

■

Mines, Ltd., Northern Rhodesia

• Bancroft

shares.

.

Bentomite Corp. of

a

*

America

*

,

t

„

-

„

-

!

-

(letter of notification) 150,000 shares of common
$1). Price—$2 per share. Proceeds—For min¬

June 29

expenses.
Office—290 N. University Ave., Provo,
Utah. Underwriter—Thomas Loop Co., New Orleans, La.

ing

Arden Farms

1

Co., Los Angeles, Calif.

15 filed $4,099,300 of 5% subordinated debentures
July 1, 1986 (convertible until July 1, 1964) and
63,614 shares of common stock (par $1).. The debentures
are being
offered for subscription by preferred stock¬
holders at the rate of $10 principal amount of debentures

June
due

for each

preferred share held, while the common shares
being offered for subscription; by common stock¬

are

holders at the rate of
of

one

10 shares, held

share for each

rights to expire on Sept. 25.
Price—
100% per $100 principal amount; for
stock, $12.50 per share. Proceeds—To repay bank loans.
Underwriter—None. Statement effective July 10.
as

For

July

10;

debentures,

Arizona

Public

Finance

Co.,

Ariz.
3ept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life insurance
5>olicies issued by Public Life Insurance Co. Price—20
■cents per share. Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by
salesman

of the

insurance

Phoenix,

firm.

Price—$26 per share. Proceeds—For capital and surplus,
including $200,000 to be invested in. securities common to
the >- life insurance industry*' Office—Waxahachie, Tex.

C. I. T. Financial Corp.

May 14 filed 15,000 shares of preferred stock (par $50)
and $100,000 convertible debenture bonds.
Price — At

Proceeds—For capital expenditures < and
capital. Office — Baltimore, Md. Underwriter

marily for furnishing working; funds to
sidiaries.

working
-—

Loeb

None.

^

,

Bli» & laugiilin, Inc., Harvey, lil.

Price—To be

stock (par $2.50).

supplied by amendment. Proceeds—To cer¬
Underwriter,—Kalman & Co., St. Paul,

tain stockholders.
Minn.
•

I

•

Braniff Airways,

-

(8/7)

Inc.

July 12 filed 1,105,545 shares of common stock (par $2.50)
to be offered for subscription by common stockholders
on

basis

the

held

as

three

of

of Aug. 7

shares for each five shares

new

(with

4

an

of

(letter

notification)

$109,245.50

principal

convertible subordinate debentures, due

of 6%

June

1966 to be offered for subscription by holders
stock at the rate of $1.30 for each share

of

1,

common

held.

(Each $100 of debentures is convertible into 18
stock.) Price—At 100% of principal
Proceeds—For working capital, construction,

shares of common

amount.

purchase of Dover plant, etc.. Office—90
York, N. Y. Underwriter—None.
Colorado Springs
June

Broad St., New

Aquatic Center, Inc.

filed 500,000 shares of common stock (par 10
Price—$1 per share. Proceeds—For swimming

5

cents).

& Co., Denver. Colo.

July 30 filed 29,500 shares of common

all of New York.

amount

Underwriter—Birken-

Denver, Colo.

Lehman Brothers,

and

Colonial Utilities Corp*
June

Birnaye Oil & Uranium Co., Denver, Colo.
April 6 (letter of notification) 1,000,000 shares of class
A common stock (par five cents). Price — 10 cents per
share. Proceeds— For mining expenses. Office — 762
mayer

Co.

&

Offering—Temporarily postponed.

William H. Burton is President of company.

Denver Club Bldg.,

1971.
Proceeds—Pri»
company's sub¬
Underwriters—Dillon; Read & CO. Inc., Kuhn,
amendment,

Price—To be supplied , by

Big Horn Mountain Gold & Uranium Co.
Feb. 23 (letter of notification) 9,300,000 shares of com¬
mon stock (par one cent).
Price—Three cents per share.
Proceeds—To be used for exploratory work on mining
mineral properties.
Office—1424 Pearl Street, Boulder,
Colo. Underwriter—Lamey & Co., Boulder, Colo.

writer—Hornblower & Weeks, New York.

>

May 17 filed $75,000,000 of debentures due June 1,

Inc.

bank loans and to reimburse
treasury funds for recent capital expenditures. Under¬
retire $1,000,000 short term

•

Underwriter—None, sales to be made through Albert
Carroll Bates, President of the company.
'

stock (par

Beta Frozen Food Storage,

Co.''

'Christian Fidelity. Life Insurance

July 12 filed 20,000 shares of common stock (par $10) to
be offered first and for period of 30 days to stockholders.

York,

July 25 filed, through: Schroder Trust Co., New
1,000,000 American depositary Receipts for ordinary'

par.

which

shares and reoffer them to per¬

common

sons selected by it at $1.10 per share.;
Y<
< ■
Ltd., Nassau, B. W. I.
July 13 filed 300,000 shares of ordinary (common) stock
ft Central Illinois Light Co. (8/16)
July 27 filed 80,000 shares of cumulative preferred stock
(par £1 sterling), of which 265,000 shares are to be sold
for account of company and y35,000 shares for selling
(par $100). Price—To be supplied by amendment. Pro¬
ceeds—To repay bank loans and for construction pro¬
stockholders.
Price — To be "supplied by amendment.
Proceeds
To purchase a 49% stock interest in Aero
gram. Underwriter—Union Securities Corp., New York.
Technics, S. A., for approximately $500,000, to make a
Chesapeake Shores Country Club, Inc.
$200,000 down payment on three S-58 Sikorsky helicop- : May 29 filed 5,000 shares of common stock, of which it Is
ters to cost a total of $1,025,000, and to retire $175,000
the company's intention to offer for sale at this time
of indebtedness. Underwriter—Blair & Go. Incorporated,
only 2,500 shares. Price—At par ($300 per share). Pro¬
New York.. Offering — Not expected until the end of
ceeds — To construct and operate a recreation resort.
August.
' * Y
* '.
\
'
• '
•'
Office—Upper Marlboro, Md. Underwriter—None.

•

20,000 shares are for the account of a selling
stockholder and 100,000 shares for the company's account.
Price—To
be
supplied by amendment.
Proceeds—To

of

<

—

of-Washington, D. C., is President and

Treasurer. '

acquire

shopping center sites and a Penn Fruit super¬
market adjacent to one of them; the balance will be used
to develop shopping centers at the seven sites and to
acquire and develop additional sites for related real
estate
activities, and for general corporate purposes.
Underwriter
Blair & Co. Incorporated, Philadelphia
and New York. Latter has agreed to purchase an addi¬

May 11 filed 179,000 shares of common stock (par $1).
Price—$5.25 per share. Proceeds—For working capital
and other corporate purposes.
Underwriter —- None.
Harry Kahn, Jr.,

$50 per

seven

York.

Industries Corp., Washington, D. C.

Automation

(neither of which will be separ¬

and

to its affiliates for money borrowed for working
capital. Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of Philadelphia, Pa.,
pany

and Weill,

6%

$2,900,000

filed

13

ft Centers Corp., Philadelphia,

Philadelphia, Pa.

Credit Corp.,

Atlas
June

(8/6)

Inc.

convertible sinking fund
debentures due Aug. 1, 1968. Price—To be supplied by
amendment.
Proceeds — For new equipment, working
capital and general corporate purposes.
Underwriter—
Cruttenden & Co., Chicago, 111.
Canadian Husky Oil Ltd., Calgary, Alta., Canada
June 29 filed 71,363 shares of 6% cumulative redeemable
preferred stock (par $50) and 1,069,231 shares of common
stock (par $1) to be offered in exchange for the out¬
standing stock of Husky Oil & Refining Ltd. on the
following basis; One share of Canadian Husky common
for each Husky Oil common share of $1 par value and
one share of Canadian Husky preferred stock for each
Husky Oil 6% cumulative redeemable preference share
of $50 par value. The exchange will become effective
if, as a result of the exchange offer, Canadian Husky
will hold at least 90% of the shares of each class of
stock of Husky Oil; and Canadian Husky reserves the
right to declare the exchange effective if less than 90%,
but more than 80%, of such shares are to be so held.

July

convertible subordinated
debentures due July, 1971.
Price — 100% of principal
amount. Proceeds—Together with $7,750,000 to be bor¬
rowed from insurance companies, for construction or
acquisition of new plants and equipment and for work¬
ing capital. Office—West Haven, Conn. Underwriterof

$9,250,000

filed

31

REVISED

Eastern Aviation,

California

(8/6-10)

Armstrong Rubber Co.

May

ISSUE

PREVIOUS

ITEMS

•

pool and related activities, bowling alley, site preparation
including parking, and land cost ($95,000). Underwriters
—Arthur L. Weir & Co., Colorado Springs, Colo.; and
Co.

&

; Copley

ft Commercial Credit Co. (8/14)
July 31 filed $50,000,000 of notes due Sept. 1, 1976. Price
—To be supplied by amendment.
Proceeds—To repay
short-term loans and for working capital. Underwriters
—The

both

First

of

New

Boston

York

Corp.

and

Kidder, Peabody & Co.,

(latter handling books).

oversubscription privilege);

rights to expire on Aug. 21.

Price—To be supplied by

Proceeds—Together with funds to be de¬
rived from $40,000,000 long-term loan, and with company
funds, to defray cost of new aircraft, flight equipment
and other facilities.
Underwriter—F. Eberstadt & Co.,

amendment.

Gets Seles Action!

New York.

Offers of securities
Brown

Investment Co.,

Ltd., Honolulu, T. H.

July 11 filed 60,075 shares of common stock. Price—To
be supplied by amendment.
Proceeds—For investment,
Business—A diversified, open-end investment company
of the

New York

Boston

Philadelphia

Pittsburgh

San Francisco*

Private IVires to all offices




Chicago

Cleveland

management type..

Underwriter—None.

when
other
most

the

ft Burma Shore Mines, Ltd., Toronto, Canada
July 26 filed 600,000 shares of capital stock, of which
500,000 shares are to be offered publicly, and 100,000
shares to promoters. Price—At par ($1 per share). Pro¬
ceeds
For equipment, exploration, drilling, working
capital and other general corporate purposes. Under¬

important

*

1

be

named later.
.

■

1

.

■

1

_' •
*

'

v

f

•<

T

.

#»

'

prospects—both professional investors and

call your

advertising counsel or nearest Chicago Tribune

representative today.

(Eijimgv OirituRjc
the

':

-r.r

womos

.Y.

..

>
i

'-t

'>\.i

■

it

•'

results from your advertising^

general public. For best

—

writer—To

and services get faster sales action

advertise them in the Chicago Tribune. No
medium in Mid-America is so widely read by your
you

crcatist
:

:
f

.'2

•

•'!*• -%>
i.■...

-

KcwsrArcx

.vb;c-L T-."
iitSl-l

■

..

■

Volume 184

Number 5556

...

The Commercial and Financial
Chronicle

(505)

Commercial-Life Insurance Co. of Missouri
June 21 (letter of
notification) 50,000 shares of common
stock being offered
initially to stockholders (par $2).
Price—$5.50 per share. Proceeds—To be added to
eral

&

of business.

Office—5579

Underwriter—Edward D.

Jones & Co., St.
Louis, Mo.

.*

Commodity Fund for Capital Growth, Inc.
May 28 (letter ol notification) 60,000 shares of common
stock (par $1). Price—$5
per share. Proceeds—For trad¬
ing in commodity future contracts. Office
436 West
—

20th

St., New York 11, N. Y. Underwriter
Economu Associates, New
York, N. Y.

Shields &

Co.

(jointly).
(EDT)

Bids—Scheduled to
Aug. 14 at office

up to 11:30 a.m,

•

Detroit Edison Co. (8/25)
July 24 filed $59,778,900 of 3%% convertible
debentures
due^Sept. 14, 1971, to be offered for
subscription by
stockholders of record Aug. 17, 1956 at the rate
of $100

on

Inc.,'800

Park

Ave-

A..;'*.,

New

•

Continental Equity Securities Corp.

;

March 28

of debentures for each 21

of

B stock, 50 cents
capital and surplus.

derwriter

share.

per

Proceeds—To

Office—Alexandria, La.

None.

Crater Lake

expire

struction and other
purposes.

share, and

class

crease

*

in¬

Devall

Un¬

y.r:

May

Mining & Milling Co., Inc.

mon

March 8 (letter of
notification) 575,000 shares of common
Price—50 cents per share. Proceeds—For

stock.

Commonwealth, Inc., Portland, Ore.

March 23

(letter of notification) 5,912 shares of 6% cu¬
mulative preferred stock
being offered for subscription
by stockholders of record April 16, 1956 on a
pro rata
basis; rights to expire on July 2,1956. Price—At
par ($50
per share). Proceeds — For working
capital, Office-

Equitable Bldg., 421 S. W. 6th Ave., Portland
4, Ore.
Underwriter—None.

Consumers Power Co.f
Jackson, Mich. (8/14)
$40,000,000 of first mortgage bonds due
Proceeds—For reduction of bank loans and for new

July 20 filed
1986.

construction.

Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Harriman Ripley & Co. Inc. and
The First Bos¬
ton Corp. (jointly);
Morgan Stanley & Co.; White, Weld

NEW

Office

expenses.

Springs, Colo.

East

Underwriter

—

Denver, Colo.

Land

&

Marine

Underwriter—None.

Construction Co.,

Inc.

(8/30)
16 (letter of notification) 150,000 shares of
com¬
stock (par $1).
Price—$2 per share. Proceeds—For

payments

of

notes, to purchase and equip three boats
working capital. Office—1111 No. First
Ave., Lake
Charles, La. Underwriter—Vickers

mining

1902

—

shares

of stock
held; rights to
on
Sept. 14.
Price—100% of principal amount.
Proceeds—To repay short term bank loans
and for con¬

filed

40,000 shares of class A common stock
(par $5) and 80,000 shares of class B common
stock (par
50 cents). Price—Of class A
stock, $12.50 per

Arthur N.

—

and

received

Commonwealth Services,
York 22, N.
.'X .

gen¬

funds and for expansion

Pershing Ave., St. Louis, Mo.

Co.

be
of

29

and

San

Rafael, Colorado
Skyline Securities, Inc.,

Brothers,

Houston,

Doctors Oil

Corp., Carroilton, Tex.
23 filed
500,000 shares of common stock (par 10
cents). Price — $1 per share. Proceeds
For working
capital, to be devoted mainly to
acquiring, exploring,
developing and operating oil and gas
properties; and to
pay off $13,590.80 liabilities.
Underwriter
James CL
McKeever & Associates, Oklahoma
City, Okla.

Crestmont Oil Co.
(letter of notification) 8,000 shares of common
stock (par $1).
Price—$6.25 per share. Proceeds—To sell¬
ing stockholders.
Office — 2201 West
Burbank, Calif.

Feb.

June 28

—

Underwriter—Neary, Purceir& Co., Los Angeles, Calif.

—

Daimid

Oil & Uranium,
Inc., Grand Junction, Colo,
April 16 (letter of notification) 2,700,000 shares of
com¬
mon stock
(par one cent). Price—10 cents
per share.
Proceeds—For mining expenses.
Office—1730 North 7th
Street, Grand Junction, Colo. Underwriter—Columbia
Securities Co., Denver, Colo.

it Douglas Corp., Fort Collins, Colo.
July 27 Hied 4,000,000 shares of common stock
(par
cent).

Price

—

10 cents per share.

ploration, development
for

working capital.
Co., Denver, Colo.

CALENDAR

—

Underwriter—Columbia Securities

Eastern-Northern

ISSUE

one

Proceeds
For ex¬
and acquisition of properties and

Explorations, Ltd.,

Toronto, Canada
June 4 (regulation
"D")

August 2

(Thursday)

Southern Pacific Co.—

;

(Bids

Equip. Trust Ctfs,
EDT)

noon

Detroit

$9,660,000

Edison

(Offering to

r\ ?v

'

'V"August 3

■

i_..Debentures
stockholders—no

(Lepow Securities Corp.)

August 28
(Bids

August 6

:! Armstrong-Rubber

Co.—L

s"--*>""•'*(ReynoldsUo-.

1—*

Debentures

lnc,)

f/ California* Eastern Aviation,

$9,250,000-

•

Inc

*'".'y''*"' (Crutteaden: & 'Co.)'
*

1'..

<&id S£31-

.

*

.

;

New

-

..

Debentures

$2,900,000

b^^rPr^ucts-:C^rp 1 -L

'

$1,000,000

Inc.)

Morgan &

Co.)

J

■iSchuster
'

,

&

Co.,

Inc.)

^1"

-x

.

■

E ran iff
i

i

(Offering

ri
.

Airways,

v

•

&
•>

'

4,

'

•

Inc.

Eberstadt

Co.)

be

underwritten

by
..

:'n.•.

=

(Wednesday)

Bell

iXh, /■■■■;(Bids

Republic

Cement

noon

EDT)

-

(Offering

to

Grand

debenture

Union

stockholders

holders—no underwriting)

Webber,

Jackson

r

Curtis

&

Corp.)

;• ■■ > V:

of

■>

Vita

Food

:

.

.

1

(Bids

and

Marache

August
(Hornblower

Union

Commercial Credit

(Bids

Common
&

Co.)

89,480

&

120,000

EDT)

Inc.)

August 15

Otis,

.Common

Inc.)

-

$3,750,000

(Tuesday)

be

invited)

$2,500,000

to

be

invited)

Ripley & Co. Inc.)

October

1

(Offering to stockholders—no

(Tuesday)
Bonds

(Monday)

underwriting)

Common

about

Pennsylvania RR.
I

to

be

$30,000,000

(Tuesday)

California Electric Power Co
(Bids to be invited)

Bonds

"

(Thursday)

Central Illinois Light Co
(Union

Securities

Preferred
Corp.)

\

to

&

stockholders—underwritten
Dominick)

$19,212,000

Securities

(Bids

17

_Bonds

$30,000,000

8:30

a.m.

PDT)

$78,000,000

■

Debentures

;

■■■

11

EDT)

$28,000,000

Preferred
11

a.m.

EDT)

proximately $16,000,000 will be used to liquidate Secu¬
rities Credit Corp.'s
liability for notes receivable dis¬
counted; and for working capital.
Underwriters—Paine,
Webber, Jackson & Curtis, Boston and New
York; and
Union Securities
Corp., New York.
General

of

$6,000,000

(Bids to

13

(Tuesday)

Co

stock (par $1) being offered in
exchange for
preferred stock and common stock of

common

Graflex, In«.

in the ratio of one-quarter share of
General preference
and one-quarter share of General
common stock in ex¬

for

$10,000,000

(Tuesday)

Carolina Powfr & Light Co

—

(Bids to be invited) $15,000,000

each

Graflex

Graflex

expire

on

common

share,

preferred stock being

five shares of Graflex

Aug. 6.

common

with each
treated as if it

stock. The offer will

Underwriter—None. Statement effec¬

16.

Tire & Rubber
Co., Akron, O.
July 5 filed 134,717 shares of $5 cumulative preference
stock (par $100) and
134,717 warrants to purchase a like
number

of

offered in

shares

of

Bonds
,

common

exchange for

M. Byers Co. on

stock

a

(par

$2.50)

to

be

and preferred stock of

common

the basis of

preference stock and

Bonds

be invited)

November 27

Precision

Equipment Corp.
;
;
filed 59,445 shares of
$1.60 cumulative con¬
preference stock (no par) and 59,445 shares

20

vertible

A.

Edison

mining operation*

General

(Wednesday)

a.m.

to

Underwriter—Philip Gordon

General

tive July

Bonds

November

$25,000,000

Pacific Telephone & Telegraph Co




(Bids

Metropolitan

(Tuesday)
Corp.)

Office—Kemmerer, Wyo.

were

by

Minneapolis-Honeywell Regulator Co...Debentures

(Bids

invited)

Ohio Power Co

August 21
(Union

be

October

Debentures

common

Dominick

to

Power Co

$8,000,000

Mack Trucks, Inc.—

(Offering

Ohio

v;

Insurance Co.

Mining and Oil, Inc.
(letter of notification) 1,200,000 shares of com»
(par five cents). Price — 25 cents per share,

change

$8,000,000

(Tuesday)

Public Service Co. of Indiana, Inc

•

August 16

In¬

stock

share of

October 16

(Bids

Sun Life

Proceeds—For expenses incident

5%

$6,873,000

distributing charge.

Gas Hills

June

.-Debentures

invited)

October 9

—.—....Equip. Trust Ctfs.

(Bids nocn EDT)

;

com¬

open-end investment company
price of the remaining 40,000

March 16 filed 32,000 shares of common
stock (par $1).
per share.
Proceeds—To expand company*!)
Office—Fort Lauderdale, Fla. Underwriter—
None. Offering will be made
through James C. Dean,
President of company.
^
^

$575,000,000

(Tuesday)

Columbia Gas System, Inc

833,591,000

an

Acceptance Corp., Allentown, Pa. (8/9)|
July 20 filed $20,000,000 of senior debentures due 1971.
Price—To be supplied by amendment.
Proceeds—Ap¬

$15,000,000

Common

(Wednesday)

J

& Co., Inc., New York 6. N. Y.

Municipality of Metropolitan Toronto.-Debentures
(Harriman

Inc.

business.

Jan. 4

(Wednesday)

American Telephone & Telegraph Co

120,000 shares

V.

vT/

Florida

mon

Virginia Electric & Power Co

(Bids

•.-«!»'

■

people, whereupon the

Gas & Electric Co.-—Preferred
to

October 2

...

•

dent.

shares

$40,000,000

^_-.»^.-..__Debentures

National Mutual Fund,

pany will cteclare itself
and change the

'

(Bids to be invited) $20,000,000

$50,000,000

4- -'

Corp., San..
Francisco, Calif. Underwriter—First National Securities
Co., same city, of which Wiley S. Killingsworth is Presi¬

'

Bonds

shares

Bonds

Co.,

&

September 25
..Common

'

jf ')

First

offering

Northern States Power Co
(Bids

*v'

June 27 filed 50,000 shares of common
stock (par $1), of
which 10,000 shares are to be offered
for sale at $10 per
share to not more than 25

$13,000,000

90,000

V

)

vestment Adviser—First National
Investment

■

Bonds

shares

(A. C. Allyn & Co. Inc. and Scherck, Richter Co.)
$6,500,000

(Blyth

invited)

'

Colony Life Insurance Co., Inc.
July 12 filed 315,000 shares of common stock
(par $2.25).
Price—$12.50 per share.
Proceeds—For working eapital,
etc. Offic§—Lynchburg, Va.
4tJnderwriters
Johnston,
Lemoi\ & Co., Washington, D. C.; and
Scott, Horner &
Mason; Inc., Lynchburg, Va. '
v'' V
:;.

shares to net asset value plus a

Bonds

Common

September 12

•

Notes

Warner & Swasey Co

j

|

'

Bonds

September 11

(Tuesday)

"Universal Match Corp..
.:■/

^

General Telephone Co. of California
< Bids, to be invited) $20,000,000

(Monday)

Weeks)

a.m.

be

v

Price—$10

(Bids

Co

11:30

shares

—-

.Blackstone Valley

:?V Consumers Power Co
•

Co.) $600,000

-

14

&

to

convertible

.

........r

•'

$40,000,000

invited)

Securities

(The First Boston Corp. and Kidder,
Peabody & Co.)

V

(Bids

(Gearhart

..^.Common
Jersey company—no»'

New

be

to

3V2%

—

Debens. & Common.

common

and

First

v;

—Common

Minerals, Inc.

/

Debentures

Amphenol Electronics Corp
r

and"'

$4,280,000

Products, Inc

(Granbery,

154,000

stock

of

•

^

;

(Wednesday)

(Bids to be Invited)

underwriting) $292,400

August 13

.....Common

September 10 (Monday)

$20,000,000

stockholders
'

r,

(Friday)

Southern California Edison Co.-*.-,

Hollander. (A.) & Son, Inc. (Del.)
(Offering to

'

basis

ing 1,000,000 shares are to be sold to Grand Union
Co.
Price—$3 per share.; Proceeds—To locate and
develop;
shopping centers East of the Mississippi. .Underwriter—
None. : C y: v.:V ;

«.'•

**

»

'(Exchange offer to preferred stockholders—Unioft Securities
Corp.
will be dealer-manager)
$61,600,000 of
debentures

Common

common

General Acceptance Corp.__.__
(Paine,

»

The

.

Gulf States Utilities Co

Inc

Co.

"

Gulf States Utilities Co.--

$9,650,000

(Thursday)

Eastern Shopping Centers,
.

,

$300,000

St Louis-San Francisco Ry

Common

Brothers)

August 9

*

-

p

;

.

Co

September 5

<■

r

.

$3,510,000

Corp

(Vickers

Telephone

and

Delaware, Lackawanna & Western RR.
k 4
."'■:&&.<r
Equip. Trust Ctfs.

'■

'-1

<M. S. Gerber, Inc. and James N. Toolan

a-m
•

$10,000,000

Industrial Limerock, Inc.

1,105,545 shares
V,"•

August 8

EDT)

a.m.

(OlferiiigJ to^stock^bldersr^TJ?. undelrwritlAg) $58,053,100

**

.Common

&

11

August 31
Illinois
:

-J

V

$61,301,000

common

debentures, due 1969, of Grand

Union Co.
one
share of Eastern for each Grand
Union share held and on basis of
4.8216 shares of East¬
ern for each
$100 of debentures held as of about Aug."
9, *
1956 (rights to expire on or about
Aug. 30). The remain¬

-»■

Telegraph Co.—Com.

underwriting)

V

k-.

Common

(Tuesday)

.

&

^

-

'fi.-,'August 30 (Thursday)
ufw.
PDevall LAhd- 6^ MaHnie Construction Co.; IncillCom.

$290,000

<:

stockholders—to

to

>p.

r

•

7

Telephone

stockholders—no

(Bids

,

August

"

to

Common

$570,000

"

•.

subordinated

(Wednesday)

(Vickers Brothers)

Trinity Equipment Corp...Debentures
.tt*"•

tion by holders of
on

Tampa "Electric-W*:

$300,000

Mica & Minerals Corp. of America—

••

:

Debentures

$30,000,000

\

.

*c- A- Montague,

England

(Offering

'A;':.,

- - -

<■(All State'BedUrities Dealers, Inc.)

(Peter

(Tuesday)i

EDT)

a.m.

August 29
•

v

.

11

•.

Eastern

Shopping Centers, Inc. (8/9)
July 20 filed 3,140,000 shares of common stock
(par $1),.
of which 2,140,000 shares are to be
offered for subscrip-.

(Monday)

•

T

•

Consolidated Natural Gas Co

$300,000

Foster-Mann,

Inc., New York.;,

underwriting)

''J:'

(Friday)

£ Popular Plastic Products Corp.—Class A Common.,

eral

—

Co,

common

859,778,900
.

500,000 shares of common stock
Price—60 cents per share. Proceeds—For
gen¬
corporate purposes.
Underwriter

(par $1).

August 25: (Saturday.)

one

share of General's

warrant to

purchase one common
Byers common stock. The
exchange ratio in respect to the Byers preferred stock is
to be supplied
by amendment.
The General company
has also agreed to purchase from J. F.
Byers, Jr., and
share for each 3V3

shares

of

Continued

on

page

30

Financial Chronicle

The Commercial and

...

Thursday, August 2, 1956

(506)

30

Inc., Miami, Fla.

Industrial Limerock,

Continued from page

29

-

,

stock for an

ditions are not met,

,

,

,

,

shares of Byers common

total of 60,000
aggregate price of

M. Byers a

B.

$1,800,000. If certain con¬
obligated to purchase

the company is

shares for an

series A shares.

outstanding $5.50

the outstanding $1,060,000
w.v
a T -, „
39,400 of the 68,837 shares of

'

Underwriter—None.

General Uranium Corp.
Jan 18 filed 400,000 shares
cents). Price—$1 per share.

Life Co., Hartford, Conn.
;
_
notification) 15,805 shares of capital
stock (par $10) being offered for subscription by stock¬
holders of record June 8, 1956 on the basis of one new
share for each share held; rights to expire on Aug. 3.

notes and by
.
,
Carlon stock
.

_

rtvt

nfrtolr

,

(H« /«)» New York
of common stock (par

Price—-$16

1U

Proceeds—For

27 (letter

of

cents). Price—10 cents per share. Pro¬
ceeds — For mining expenses. Underwriter — Bel-Air
Securities Co., Provo, Utah.
Gray Tool Co., Houston, Texas
May 3 (letter of notification) 3,270 shares
(no par), of which 1,000 shares are to
rata to the holders of class A stock and 2,270

rate purposes.

mon

(par 10 cents).

stock

v

;

Temple St., Salt Lake City,

count of the company and 90,000

6ffice

ment, etc.

other corpo¬

125,000 shares of Insurance Growth Series; and 125,000
of Industrial Growth Series. Price—At market.
Proceeds — For investment. Underwriter — All States

shares

Utah. Underwriter—Melvic
Utah.

Management Co., Dallas, Texas. "

Brooklyn ft

Mullins, S. C.
shares of common stock (par $1),
of which 1,200,000 shares are to be offered publicily
and 600,000 shares on exercise of options. Price—$2 per
share to public.. Proceeds—To be added to general op¬
erating funds to enable the company to maintain proper

Co.
Dec. 30 (letter of notification) 24,000 shares of capital
stock (par $5) to be offered first to stockholders; then
policyholders and the public. Price—$10 per share. Pro¬
ceeds^—For working capital. Address—P. O. Bqx 2231,
Baton Rouge, La. Underwriter—None.
Gunkelman (R. F.) & Sons, Fargo, N. D.
May 25 (letter of notification) 1,800 shares of 5% cumu¬
lative preferred stock (par $100). Price—$98 per share.
Proceeds
For expenses incident to commercial grain
business. Underwriter—W. R. Olson Co., Fargo, N. D.

required by law. Underwriter—None.

Los

Office—4535 Jason St.,
Underwriter—None.

and operating capital.

Inc.

(Panama)

Hiskey Uranium Corp.

of common stock (par 30
Proceeds—For drilling ex-,
penses, purchase of properties and working capital. Of¬
fices—Las Vegas, Nev., and S^ilt Lake City, Utah. Under¬
writer—Ackerson-Hackett Investment Co., Reno, Nev.
Holden Mining Co., Winterhaven,. Calif.

Lost Canyon Uranium & Oil Co.
6 (letter of notification) 3,000,000 shares of non¬
assessable capital stock (par one cent). Price—10 cents
per share.
Proceeds—For expenses incident to mining
:

operations. Office — Simms Bldg., Albuquerque. N. M.
Underwriter—Mid-America Securities Inc. of Utah, Salt
Lake

•

Hollander

(A.)

& Son, Inc.

(N.J.)

1

held as of Aug. 8, 1956; rights to expire on
Price—At par ($12.50 per share). Proceeds
—To purchase certain assets of the Delaware company
and for working capital. Office—Newark, N. J. Undercompany

Aug.

'

30.

writer—None.
Hometrust

Jan.
Price
.

/

Corp.,

Inc., Montgomery, Ala.

125,000 shares of common stock (par $1).
$5. per share. Proceeds — To expand operations

5 filed

of subsidiary and increase investment therein.

Under¬

writer—None.
Idaho-Alta Metals Corp.
,

March 7. (letter of notification) 120,000 shares of com¬
mon stock (par 10 cents).
Price—$1.50 per share. Pro¬
ceeds—For exploration and development expenses Un¬
derwriter — Fenner Corp. (formerly Fenner-Streitman
to Co.), New York.
Ideal-AerosuMtli, Inc., Hawthorne, Calif.
Dee 16 (letter of notification) 150,000 shares of capital
Stock (par $1>. Price—$2 per share. Proceeds —For

equipment, machinery, inventory, etc. Office—12909 So.
Cerise Ave., Hawthorne* Calif. Underwriter—Samuel B.
Franklin & Co., Los Angeles, Calif.




which
share.
«.

9,300 shares will be initially sold at $10.98 per
Additional shares 5will be offered at a price equal

to the net asset value of the

Fund, plus a sales load of

8%% of such price. Proceeds—For investment. Invest¬
ment Manager — California Fund Investment Co., of
which John Kerr is also President.
Knox

Corp., Thomson, Ga.
June 20 filed 150,000 shares of class A common stock
(par $1). Price—To be supplied by amendment (expect¬
ed at $4 per share). Proceeds—To pay loans from banks
and factors; and for working capital and other corporate

Business—Prefabricated homes, house trailers
lumber. Underwriter—Ira Haupt & Co., New York.

purposes.

and

Kropp Forge Co.
(letter of notification)

18,804 shares of common
cents). Price—At market, (estimated at
$3.50 per share). Proceeds — To selling stockholder.
Underwriter—Sincere & Co., Chicago, 111.

June 4

stock

(par 33%

—

Underwriter—None.

May 2-filed 50,000 shares of common stock (par $10).
Price—$12 per share. Proceeds—For working capital and
general

corporate

purposes.

Underwriter—None,

Office

—

Denver, Colo.

t

(8/6)

it Macinar, Inc.

July 23 (letter of notification) 400,000 shares of common
stock (par 50 cents). Price—75 cents per share. Proceeds
—For
tures

general corporate purposes. Business — Manufac¬
and aluminum specialty products.
Under¬
J. Montague, Inc., 417 Lexington Ave., New
17, N. Y. /
.....
steel

writer—C.
York

* Mack Trucks, Inc. (8/16)
July 27 filed $19,212,000 of sinking fund subordinated
debentures due Sept. 1, 1968 (with warrants to purchase

-

July 30 filed 100,000 shares of capital stock (par $1), of

Office

Lumberman's Investment & Mortgage Co*

*

192,120 shares of common stock) to be offered for sub¬
scription by comihon/stockholders of record about Aug.
15, 1956, in the ratio of $500 of debentures to";eac&*5Q
shares of stock "held /(with, an oversubscription, privi¬
lege); rights to expire on Aug, 30.

Price—To be supplied
Under¬

by amendment. Proceeds—For working capital.
writer—Dominick. & Dominick, New York.

* Kerr Income Fund, Inc., Los Angeles, Calif.

8/9)

July 20 (letter of notification) 23,392 shares of common
stock to be offered for subscription by common stock-;;
holders of A. Hollander & Son, Inc. (Del.) on the basis
of one new share for each 10 shares of the Delaware

.

drilling.

Nev.

Aug. 26

April 13 (letter of notification) 250,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Address — P. O. Box 308, Winterhaven,
.Calif. Underwriter—Arthur B. Hogan, Inc., Hollywood,
$ New York.
Calif.
'

;

and

writer—Foster^Maniv Inc., New York, N. Y.
Colo.

working capital, exploration
114 North Third St., Las Vegas,

Proceeds-— For expenses,

cents). Price—$3 per share. Proceeds—For

(letter of notification) 2,855,000 shares of non¬
assessable common stock (par one cent). Price—10 cents
per share.
Proceeds—For expenses incident to mining
activities. Office — 326 West Montezuma St., Cortez,
Colo. Underwriter — Bay Securities Corp., New York,

City, Utah.

it Lucky Mining Co.
July 16 (letter of notification) 6,000,000 shares of com¬
mon stock (paronecent).
Price—Five cents per share.

working capital and for purchase of a ship and equip¬
ment.
Office—1214 Ainsley Bldg., Miami, Fla. Under¬
Jurassic Minerals, Inc., Cortez,

Under¬

Oct.

May 29 filed American voting trust certificates for
000 shares of common stock (par one cent), of

stock (par 10

Calif.

(letter of notification) 645 shares of common

West Imperial Highway, Los Angeles 49, Calif.
writer—Dean Witter & Co., Los Angeles, Calif. *

1,430,which
Hard Rock Mining Co., Pittsburgh, Pa.
1,000,000 certificates are to be offered for public sale,
Feb. 20 (letter of notification) 1,000,000 shares of com¬
180,000 shares arid certificates therefor are subject to
mon stock (par one cent).
Price—Five cents per share.
options and 250,000 shares and certificates therefor are
Proceeds—To purchase machinery and equipment and
to be offered for sale outside of the United States. Price
for working capital. .Office—377 McKee Place, Pitts¬
—To be the market price on the American Stock Ex¬
burgh, Pa. Underwriter—Graham & Co., Pittsburgh, Pa. ' '
change. Proceeds — For carrying out the exploratory
Hidden Dome Exploration Co., Inc. '
drilling and development of presently licensed acreage,
May 15 (letter of notification) 3,000,000 shares of capital
operations and expenses of the company, and acquisition,
stock. Price—At par (10 cents per share). Proceeds—
exploration and development of additional acreage. Un¬
For the development of oil and gas properties. Office—
derwriter—H. Kook & Co., Inc., New York.
219 E. Fremont Ave., Las Vegas, Nev.
Underwriter—
Isthmus Steamship & Salvage Co., Inc.
National Securities Co., Las Vegas, Nev.
,1
May 4 (letter of notification) 100,000 shares of common
May 31 filed 500,000 shares
cents). Price—$1per share.

:

stock (par $10). Price — $54 per share. Proceeds — To
Clarence M. Belinn, the selling stockholder. Office—5901

—

?

Angeles Airways,/ Inc., Los Angefes,

April 23

^ Investors, Inc., Denver, Colo.
;
r
July 24 (letter of notification) 400,000 shares of common
stock. Price—At par (50 cents per share). Proceeds—For

Israel-Mediterranean Petroleum,

„

Blyth & Co., Inc., The First Boston Corp. and W. C.
-Langley & Co., all of New York. Offering — Postponed
because of present unsatisfactory market conditions.

Proceeds—For investment.

Denver, Colo.

'

Long

^ Investment Trust of Boston
T* i
July 31 filed (by amendment) 2,000,000- additional shares
of beneficial interest in the Trust. Price — At market.

expenses

•*"

Island Lighting Co.
«. April 5 filed 120,000 shares of cumulative preferred stock,
series G (par $100). Price—To be supplied by amend¬
ment.
Proceeds—To repay bank loans.
Underwriters—

Investment Life & Trust Co.,

Life Insurance

.

Lone Star Fund, Dallas, Texas
June 1 filed 125,UOO shares of Balanced Income Series;

July 9 filed 1,800,000

insurance reserves

Underwriter—George A. Searight,

corporate purposes.
New York City.

1,000,000 shares of com¬
— 25 cents per share
Office—155 West South

369-375 DeKalb Ave.,

—

exploration and development and other general

—For

Underwriter—Kamen to Co.. New; York.

N. Y.

Price—$1. per share, by amendment.

holders.

Colo. Underwriter—

International- Plastic Industries Corp;
Oct. 12 (letter of notification) 150,000 shares of commo*
stock (par 10 cents). Price—$2 per share.
Proceed*For advances to Arliss Co., Inc. for purchase of equip

shares are to be sold for ac¬
shares for selling stock¬
Proceeds ]

of which 600,000

cents),

to Co., Salt Lake City,

G. Flegal

21

June

Price

Proceeds—For raining expenses.

Underwriter—None.

Guaranty Income

(letter of notification)

Jan. 27

are

capital expenditures and

,

Developments, Inc., Cleveland, Ohio
filed 600,000 shares of common stock (par 10

Litnium

International Basic Metals, Inc.

of class B stock
be offered pro¬
shares are
offered to employees of the company. Price — $50 per .
share. Proceeds—For working capital. Office—6102 Harrisburg Blvd., Houston, Tex. Underwriter—None.
Growers Container Corp., Salinas, Calif;
May 28 filed 600,000 shares of common stock (par $1)
to be offered primarily to individuals and firms - who
engaged in or closely allied to the growing and
shipping industry. Price—$3 per share. Proceeds—For
working capital,

<

improvements,

Office—

capital.

10

equipment and for general corporate
purposes.
Office—Tucson. Ariz. Underwriter—George
F. Breen, New York. Offering—Postponed.

capital stock and
Conn. Under¬

None.

Uranium Corp., Buena Vista, Colo.
notification) 3,000,000 shares of capital

itock (par five

and working

expenses

Bank Bldg., Denver,

'

Price—To be supplied by amendment. Proceeds
—For exploration and evaluation of leasehold properties,

A

U. S. National

'

cents).

it Insurance Enterprises, Inc.
July 23 (letter of notification) 200,000 shares of class
common stock
(par $1—with prior dividend rights of
seven cents per share) and 20,000 shares of class B com¬
mon stock
(no par) to be offered in units of 80 class A
shares and eight class B shares.
Price—$100 per unit.

York.

Golden Dawn
Dec

share. Proceeds—For

per

Lewisonn Copper Co* p.

March 30 filed 100,000 shares of common stock (par

Office—750 Main St., Hartford,
writer—Putnam & Co., Hartford, Conn.

surplus.

Proceeds—For plant facil¬
ities, survey of property and underground development
Underwriter—None. Maurice Schack, Middletown, N. Y.,
is President. Statement effective March 11.
• Gold Seal Dairy Products Corp.
(8/6-10)
June 22 tiled 200,uOO snares of class A stock (par 10
cents). Price—$5 per share. Proceeds—For expansion
and to repay outstanding obligations.
Office—Remsen,
N. Y. Underwriter—All States Securities Dealers, Inc.,
New

July 3 (letter of notification) up to 25,000 shares of com- *
mon stock
(par 50 cents) to be issued upon exercise of
stock option warrants. Price—$4 per share. Proceeds—
For general corporate purposes. Office— 30 Main St,
Brooklyn 1, N. Y. Underwriter—S. D. Fuller to Co.. New
York.: No general offering planned.
'

(letter of

28

*

Leetronics, Inc.

i

Insurance City

June

leadville Explorations, Inc. Office
Denver, Colo. Underwriter—None*

stock of its subsidiary,

—308 Colorado Bldg.,

Development Corp.
March 7 (letter of notification) 1,000,000 shares of com¬
mon stock. Price—Five cents per share.
Proceeds—For
development and working capital. Office—Moab, Utah
Underwriter—I. J. Schenin Co., New York.

w

of an ui
all of

ujl

not less than

Uranium Corp.
;
150,000 shares of common v
stockholders; the balance
to go to certain persons in certain jurisdictions to be
decided upon.
Price—$2 per share. Proceeds—For ex- '
ploration and development and to purehase aauitional
it Leadville Lead &

July 17 (letter of notification)
stock (par $1) to be offered to

Industrial Minerals

^General Tire & Rubber Co., Akron, Ohio
July 27 filed 26,068 shares of $5 cumulative preference
stock (par $100) to be offered in exchange for common
stock and 6% promissory notes of Carlon Products Corp.
The exchange offer will be subject to acceptance by
owners

war¬

Price—$2 per share. Proceeds—For equipment,
working capital and general corporate purposes. Under writers—M. S. Gerber, Inc. and James M. Toolan & Co.,
both of New York.

rants.

aggregate of 18,000 snares of
General's cumulative preference stock of a series con¬
taining similar terms and provisions to the company's

the 60,000

(9/5-6)
(par one

July 23 filed 300,000 shares of common stock
cent), together with 75,000 common stock purchase

Mammoth

Milling &

Uranium Co., Inc.

May 11 (letter of notification) 3,000,000 shares of capital
stock.
Price—At par (10 cents per share). Proceeds—

mining expenses. Office—205 Carlson Bldg., Pocatello, Idaho. Underwriter—Columbia Securities Co., Inc.
of California, Beverly Hills, Calif.n
/ fj y

For

•

Marquardt Aircraft Co., Van Nuys, Calif.
25 filed 42,442 shares of capital stock (par $1) to

June
be

offered

for

subscription

by

stockholders

of

record

Aug. 3, 1956, on the basis of one new share for each five
shares held (with an oversubscription privilege); rights
to

expire

on

ceeds—From

Aug.
sale

24.
of

Price — $36 per share. Pro¬
together with funds from

stock,

private placement of $2,000,000 of first mortsage 5V4%
bonds, for capital improvement, equipment and general
corporate purposes. Underwriter—None. Unsubscribed
shares will be bought by Olin Mathiesen Chemical Corp.,
and

Laurence S.

holders.

Rockefeller, the two principal stock¬

••

'

•

.

it Lazere & Co., Inc., New York
July 27 (letter of notification) $50,000 of 5-year 8%%
subordinated debentures.
Price — At par (in units of
$5,000 each)/ Proceeds—For working capital and general
corporate purposes. Business — Commercial financing.
Office—101 Park Ave., New York, N. Y.. Underwriter—
None. »'»:
: t.
i

t

i

it Mascot Mines, Inc.
—
July 9 (letter of notfication) 280,000 shares of common
stock (par 17% cents). Price—25 cents per share. Pro¬
ceeds—For payment on properties; repayment of ad¬
vances; exploration and development and* working cap¬
ital. Office—508 Peyton Bldg., Spokane, Wash.
Under¬
writer—Standard Securities

Corp., Spokane, Wash.

-

'•t.<' f-'.-b

Volume 184

iW«■j'Vi.1"1!

Number 5556

.

uii

.»;

The Commercial and Financial Chronicle

(507)
-

Mica & Minerals

June

13

cents).

filed

Corp. of America

570,000

Price—$1

per

(8/6)

e

common stock
(par 10
Proceeds—To repayment of

National Old Line Insurance

Nov. -15

(par

filed

$2)

50,000

shares

of

^

Co.

class

A

options and 25,000 shares and certificates therefor

common

stock

be offered for sale outside of the
United States.
To be the market price on the American Stock

and

50,000 shares of class B common stock
/par $2).
Price—To be supplied by amendment. Pro¬
ceeds
To selling stockholders.
Office
Little Rock,
<yk. Underwriter—Equitable Securities Corp., Nash¬
ville, Tenn., and New York, N. Y. Offering—Indefinitely

loans, to exercise option to purchase property now under
lease, for construction of a plant, and for further explo¬

—

ration, working capital and other general corporate pur¬
Underwriter — Peter

Michigan Wisconsin Pipe Line Co.

I

July 2 ined $25,000,000 of first mortgage pipe line bonds
1976._ Proceeds-—To pay off short term bank loans

<

due

-

r

,

to

;

Proceeds—For exploration, drilling and
development of
oil and gas acreage in Israel.
Underwriter—H. Kook &
Co., Inc., New York.
Pinellas

•

postponed.

are

Price-

Exchange.

—

poses.
Office—Wilmington, Del.
Morgan & Co., New York.

s

•;

r

shares of
share.

3t

Feb.

,

Niagara Uranium Corp., Salt Lake City, Utah
April 3 (letter of notification) 2,400,000 shares of com¬
mon stock
(par 3% cents). Price—10 cents per share.
Proceeds
For mining expenses.
Office — 345 South
State St., Salt Lake City, Utah.
Underwriter—Birken-

16

Industries, Inc., St. Petersburg, Fla.

(letter of notification) 8,000 shares of class A
stock (par $1).
Price—At the market (maxi¬
$6). Proceeds—For working capital/ Office—34th

common
mum

St. & 22nd Ave., North, St.
Petersburg, Fla. Underwriter
Underwriter
To be
—Eisele & King, Libaire, Stout &
determined by competitive bidding. Probable bidders:
Co., New York.
■
Popular Plastic Products Corp. (8/3)
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Harri- /
mayer & Co., Denver, Colo.
July 9 (letter of notification) 150,000 shares of Class A
(manJttipjey & Co. Inc.; Blyth & Co., Inc. Bids—Three
Nicholson (W. H.) & Co., Wilkes-Barre, Pa.
stock (par 10 cents).
bids were received yesterday (Aug. 1), ail for 43/4S, but
Price—$2 per share. Proceeds—
Jan. 16 filed 20,000 shares of common stock
(par $5). /For working capital and general corporate purposes.
r were turned down.
No new date for bidshas been set.
Price—$25 per share. Proceeds — For working capital. V Office—East
• Mid-Continent Uranium
Northport, L. I., N. Y. Underwriter—Lepow
Corp. Underwriter—None. A. E. Nicholson Jr. of
Securities Corp., New York.
Kingston, Pa
May 31 ^letter of notincauon; iud,000 shares of common
is President.
/
.
'
Prestole Corp.
stock (par ope cent). Price—56 cents per share. Proceeds
.*
* Nixon's Inc., Whittier, Calif.
—For mining expenses. Office—728
July 3 (letter of notification) $300,000 of 6% convertible
Symes Bldg., Den¬
July 16 (letter of notification) 27,000 shares of common
ver 2, Colo. Underwriter—General
sinking fund debentures due July 1, 1971 to be issued
Investing Corp., New
stock (par $10).
in denominations of $20 or
Price—$11 per share. Proceeds—For
any multiple thereof.
York, N. Y. Offering—Has been withdrawn.
Price
equipment for new supermarket, and for construction of
—100% and accrued interest.
Proceeds—To pay short
Midland General Hospital, Inc., Bronx, N. Y.
new Drive-in at
Anaheim, Calif. Underwriter—Morgan
term note ana to buy equipment. Office—1345 Miami
Jan. 12 filed 24,120 shares of common stock (no par)
& Co., Los Angeles, Calif.
St., Toledo, Ohio. Underwriter—Baker, Simonds & Co.,
and 30,000 shares of $6 dividend preferred stock
(no
North American Finance Co.,
Detroit, Mich. Offering—Being postponed. Larger deal
Phoenix, Ariz.
par). The company does not intend presently to sell
expected in near future.
July 9 filed 500,000 shares of class B non-voting common
*
more stock than is required to raise, at most, $2,700,000
4I«i,
stock (par $1). Price—$3 per share. Proceeds—To exPrudential Federal Uranium
Price
Corp.
$100 per share. Proceeds — For construction,
pand business operations. Underwriter—None, sales are
March 21 (letter of notification) 6.000.000
shares of com¬
working capital, reserve, etc. Underwriter—None.
to be made by Eugene M.
mon stock (par two
Rosenson, President, of Pheocents).
Price—Five cents per share.
•
Minerals, Inc., New York (9/10)
nix, and Marcus T. Baumann, Vice-President and Treas¬
Proceeds—For mining expenses.
Underwriter—Skyline
June 22 filed 2,500,000 shares of common stock (par
urer, of Tucson, Ariz.
Securities, Inc., Denver 2, Colo.
f
. .
one cent). Price—$1.50 per share. Proceeds—To acquire
}
* North Carolina
Telephone Co., Matthews, N. C.
★ Puerto Rican Jai Alai, Inc.
for $2,400,000 the Chavin lead-zinc-copper-silver mine
July 24 filed 828,572 shares of common stock (par $1) to
July 27 filed $1,100,000 of $1,000,000 12-year 6% first
located in South Central Peru, and for general corporate
be offered for subscription by common stockholders at
mortgage bonds due July 1, 1968, and 220,000 shares of
: purposes.
Underwriter —- Gearhart & Otis, Inc., New
the rate of two shares for each share held; rights to ex¬ : common stock (par $1). Price—100% of
York.
principal amount
for debentures and $1.75
pire Aug. 29. Price-r-To be supplied by amendment. Pro¬
per share for the stock.
Pro¬
^ Minneapolis-Honeywell Regulator Co. (8/21)
ceeds—To acquire physical properties and franchises of
ceeds—For construction of fronton and related
activities.
Aug. 1 iiied $25,000,000 of 20-year sinking fund debenthe Norwood and Marshville (N. C.)
Office—San Juan, Porto Rico. Underwriters—Vrerie &
exchanges of the
tures due 1976. Price—To be supplied by amendment.
United Telephone Co. of the Carolinas, Inc.; to reduce
Co., Houston, Texas; and Dixon Bretscher Noon, Inc.,
'
Proceeds—To reduce bank loans and for working capital.
short term indebtedness; for construction and moderniza- / Springfield, 111.
'
Underwriter—Union Securities Corp., New York.
tion program; and for working capital. Underwriters—
R. and P. Minerals,
Inc., Reno, Nev.
Mission Appliance Corp. of Mississippi
:
R. S. Dickson & Co., Inc., Charlotte, N. C'. and
Feb. 14 (letter of notification) 500,000 shares of
McCarley
common
& Co., Inc., Asheville, N. Q.
April 23 (letter of notification) 7,475 shares of preferred
; stock.
Price—At par (10 cents ner share).
Proceeds—
stock (par $20) and 29,900 shares of common stock (par
Northern Indiana Public Service Co.
For mining expenses.
Office—573 Mill St., Reno, Nev.
$5) to be offered in units of one preferred and four com¬
July 10 filed 370,894 shares of 4.40% cum. preference
Underwriter—Utility Investments, Inc., Reno, Nev.
mon shares.. Price—$40 per unit.
Proceeds — For pur¬
stock (convertible through Dec. 1, 1966—par value
$40
Radium Hill Uranium, Inc.,
Montrose, Colo.
i
chase of machinery and equipment. Office—New Albany,
per/.share) being offered for subscription by common
June 14 (letter of notification) an undetermined number
Miss. Underwriter—Lewis &
Jackson, Miss.
stockholders of record July 13 on the basis of one preof shares of common stock vvhich when
spld at the
ferred share for each 10 common shares held; rights to
market will bring in an
Modern Pioneers' Life Insurance Co.
aggregate amourft t>f $42,500.
expire Aug. 8. Price—$40 per share. Proceeds—To repay
Proceeds—For mining expenses.
May 24 (letter of notification) $300,000 of trust fund cer¬
Office—Bryant Bldg.,
bank loans and for construction program. Underwriters
tificates. Price—At par ($2 per unit). Proceeds — To
Montrose, Colo. Underwriter—Shaiman & Co., Denver,
—Central Republic Co., Inc., Chicago, 111.; and Blyth &
Colo.
provide capital and surplus funds for the activation of
v^''-y
i'/
Co., Inc. and Merrill Lynch, Pierce, Fenner & Beane,
this insurance company. Underwriter—Arizona Mutual
Rea
(J. B.) Co., Inc., Santa Monica, Calif.
V/
both of New York./,
Benefit Insurance Co., Phoenix, Ariz.
May 29 (letter of notification) 60,000 shares of common
it Northern States Power Co. (Minn.)
(9/12)
stock being offered for subscription
Mohawk Business Machines Corp. /
by stockholders of
July 26 filed $15,000,000 of first mortgage bonds due / record July 17 on a l-for-2
basis; rights to expire in
July 19 (letter of notification) 138,750 shares of common
1986. Proceeds—For repayment of bank loans and for
15 days following July 24. Price—At
stock (par 10 cents) to be sold privately to Milton J.
par ($5 per share).
additions and improvements to property. Underwriter—
Proceeds—For inventory and working capital. Office—
Shuck of New York City. Price — For an aggregate of
To be determined by competitive bidding. Probable bid¬
1723 Cloverfield Blvd., Santa
Monica, Calif. Underwriter
$50,000. Proceeds—To selling stockholder. Office—944
ders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and
—Shearson, Hammill & Co., Beverly Hills, Calif.
1 Halsey St., Brooklyn 33, N. Y. Underwriter—None.
The First Boston Corp. (jointly); Merrill Lynch, Pierce,
Reinsurance Investment Corp., Birmingham, Ala*
■////Mohawk Silica Co.* Cincinnati, Ohio
Fenner & Beane, Kidder, Peabody & Co. and White, Weld
/ May 25 filed 2,985,000 shares of common
•
stock, of which
March 23 {letter of notification) 3,000 shares of 8%
& Co. (jointly); Equitable Securities Corp. and Union
2,485,000 shares are to be offered to public and 500,000
cumulative convertible preferred stock (par $50> and
Securities Corp. (jointly);,Smith, Barney & Co.; Lehman
shares are to be reserved on exercise of options to be
Brothers and Riter & Co. (jointly); and Glore, Fprgan
3,000 shares of common stock (no par) to be offered in
granted to employees of company. Price—To public, $2
& Co. Bids—Expected to be received on
units of one share of preferred and one share of common.
Sept. 12.
per share. Proceeds—The first $3,000,006 will be used to
Price
$60 per unit. « Proceeds — For mining expenses
NYPA Gas Corp., Buffalo, N. Y.
purchase or organize a legal reserve life insurance com/ and
processing silica. Office—2508 Auburn Ave., Cincin¬
July 11 (letter of notification) 5,586 shares of common H pany to be known as the "Reinsurance Company of the
nati, Ohio. Underwriter—None.
stock (no par) to be offered to present stockhoku*
South"; the remainder will be used for other corporate
Mormon Trail Mining Corp., Salt Lake City, Utah
purposes.
Price—$8 per share. Proceeds—For oil and gas drilling
Underwriter—Luna, Matthews & Waites;
-and for

construction

program.

—

.

.

•

.

.

.

,

<

,

.

;

•

„

—

'

-

.

-

.

„

,

1

^

•

,

,

.

»

,.

j

,

.

r

■

•

-

,

-

,

i

•

•

—

Feb. 9 (letter of notification) 3,000,000 shares of capital
•

-

expenses.

stock- (par one cent).

Buffalo 2,

Price—10 cents per share. Proceeds—For mining expenses. Office—223 Phillips Petrol-

Oak Mineral & Oil Corp., Farmington, N. M.
(letter of notification) 2,000,000 shares of common
stock (par five cents). Price—15 cents per share. Pro¬
ceeds—For exploration and development and other gen¬

'

eum
-

!

.

•

j

v

Bldg., Salt Lake City, Utah.

Underwriter—Frontier

Nov. 8

Investment, Inc., Las Vegas, Nev.
Municipality of Metropolitan Toronto
(Canada)
(8/15)
July 26 filed $33,591,000 of sinking fund debentures ma¬
turing respectively, in 1961, 1966, 1971, 1976 and 1986,
and $2,863,000 of instalment debentures due
1957-1975,
inclusive. Price—To be supplied by amendment, Proceeds—For improvements, etc.
Underwriter—Harriman
Ripley & Co. Inc., and six other firms.

eral corporate purposes.

tion of short-term bank loans.
Underwriters—Blyth &
Co., Inc., and Hornblower & Weeks. Offering—Indefi¬
nitely postponed.
,

* Pacific Telephone & Telegraph Co. (8/21)
July 27 filed $78,000,000 of 32-year debentures due Aug.
15,1988. Proceeds—To reduce temporary loans from par¬

Underwriter—T. C. Henderson & Co.,
Inc., Des Moines, Iowa.

ent

Corp., Denver, Colo.
(letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining expenses. Office — 556 Denver Club
Bldg.,
Denver, Colo. Underwriter — Investment Service Co.,
same city.
:•'
/////'/
Dec. 27

holders

None.

Underwriter—To be de¬

in

the

ratio

of

one

share

for

each

six

shares

stock which represents its pro rata portion of the offer¬

Corp.

ing.

Price—At par

pay

March 5




bank loans.

(common and/or preferred stock) held. American Tele¬
phone & Telegraph Co., the parent, owns 90.70% of the
outstanding common stock-and 78.17% of the preferred
stock, and intends to purchase 1,399,824 shares of the new

,

Metallizing

repay

it Pacific Telephone & Telegraph Co.
July 27 filed 1,562,267 shares of common stock to be of¬
fered for subscription by common and preferred stock¬

Lithium

(letter of notification) 24,000 shares of Class A
stock (par $1) and 40,000 shares of Class B stock (par
$1) to be offered for subscription by Class A and Class
B stockholders of record Feb. 1, 1956 on a l-for-4 basis.
Price—$2 per share. Proceeds—For vacuum metallizing,
,-conditipning, slitting and inspection machinery. Office—
1145-19th St., N. W., Washington, D. C. Underwriter—

to

termined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids—
Tentatively scheduled to be received up to 8:30 a.m.
(PDT) on Aug. 21. -

National Consolidated Mining Corp.
May 9 (letter of notification) 87,000 shares of common
stock (par one cent). Price—$3 per share.
Proceeds—
For mining expenses.
Address — Salida, Colo. Under¬
writer—Pummill Enterprises, Houston, Tex.

National

and

/

Republic Cement Corp., Prescott, Ariz! (8/8) /
April 20 filed 965,000 shares of capital stock. Price—$1(L
per share. Proceeds—For construction of plant, working
capital and general corporate purposes. Underwriter—
Vickers Brothers, New York.
'-?'////V

Security Casualty Insurance Co.
May 10 (letter of notification) 30,000 shares of common
(par 30 cents) and 90,000 shares of participating
/ preferred stock (par 50 cents) to be offered in units of
stock

Pacific Finance Corp. (Calif, )
April 10 filed $25,000,000 of debentures due 1971. Price
—To be supplied by amendment.
Proceeds—For reduc¬

National By-Products, Inc.
June 19 (letter of notification) 2,000 shares of common
stock (par $1). Price—$5 per share.
Proceeds—To pay
Federal estate taxes.
Office—800 Bankers Trust Bldg.,

National

Underwriter—Philip Gordon A

Co., New York.

Des Moines, Iowa.

'

Office—606 Root Bldg., 84 W. Chippewa St.,
N. Y. Underwriter—None.

'

temporary

($100 per share).
borrowings and for

Proceeds—To
new

re¬

construction.

one

share of

Price—$4

and three shares of preferred stock.
Proceeds—For working capital, etc.

common

per

unit.

Office—257 Josephine St., Denver, Colo. Underwriter—
Intermountain Securities. Inc., Denver, Colo.

it Security Loan & Finance Co.
July 17 (letter of notification) 200,000 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—For
expansion program.

City, Utah.
City.

Office—323 So. State St., Salt Lake

Underwriter—Whitney & Co., also of Salt

Lake

»

Shangrila Uranium Corp.
30 (letter of notification)

Dec.

300,000 shares of

com¬

mon stock.
Price—At par ($1 per share).
Proceed#—
For mining expenses. Underwriter—Western State# In¬
vestment Co., Tulsa, Okla.

★ Shoni Uranium Corp.
(letter of notification) 6,000,000 shares of

July 13
mon

stock

(par

com¬

cent).

Price—Five cents per share.
Proceeds—For expenses and working capital. Addressone

Box 489, Riverton, Wyo.
Denver, Colo.

Underwriter

—

Carroll & Co.,

Skiatron Electronics & Television- Corp.
March l'6 filed 470,000 shares of common stock

cents).

Price

—

At the market.

Proceeds

—

To

(par 10

selling

Underwriter—None.

.

stockholders.

Pan-Israel Oil Co., Inc. (Panama)
May 29 filed American voting trust certificates for 1,430,000 shares of common stock (par one cent), of which

Southwest American Houses, Inc.
July 13 (letters of notification) 2O,5Q0 shares of common
stock (par 10 cents). Price — At market (estimated at

1,000,000 certificates are to be offered for public sale,
180,000 shares and certificates therefor are subject to

Underwriter—None.

-

*

Continued

on

page

32

The Commercial and Financial

32

£ Twentieth Century Life Insurance Co.
, ' f
.
:July 23 (letter of notification) 100,000 shares of capital
common stock (par $1). Price—$3 per share.
Proceeds—

Continued from page 31
$2,375 per

chsre)r Proceeds—For the

Office — 1200 Givens
Underwriter—Aetna Securities Corp.,
Stockholders.

Southwestern Oklahoma

account of selling

Oil Co., Inc.

St., Phoenix, Ariz.
U-Kan

.

tions,

Inc., Topeka,

Topeka, Kan.

Underwriter—E. R. Bell Co., Kansas City,

Chemical & Materials Corp.

25

exercise op¬
for general
Underwriter—Southwestern Secu¬

share. Proceeds—To
purchase additional properties and

.

Union of Texas Gil Co.,

Houston, Texas

of notification) 240,000 shares of common
stock (par 10 cents). Price—$1.25 per share. Proceeds—
For expenses incident to oil production. Office — San
Jacinto Building, Houston. Tex. Underwriter—Mickle &
Co., Houston, Texas. Offering—Put off indefinitely.
Jan. 19 (letter

Co., Indianapolis, Ind.
July 3 filed 200,000 shares of common stock (par $2.50)
to be offered to agents, and employees of Automobile
Statesman Insurance

yUnderwriters, Inc., "Attorneys-in-Fact for the Subscrib¬
ers
at the State Automobile Insurance Association."
Frice—Proposed maximum is $7.50 per share. Proceeds
—To obtain a certificate of authority from the Insurance
Commissioner of the State of Indiana to begin business.

jr United States Mining & Milling Corp. (N. Y.)
July 16 (letter of notification) 300,000 shares of com¬
mon stock (par one cent).
Price—$1 per share. Proceeds
—For exploration and drilling costs and for working
capital. Underwriter—N. R. Real & Co., Jersey City, N. J.

-

\

,

^

of common stock (par $10).
amendment. Proceeds—To
selling stockholders. Office—Chicago, 111. Underwriters
—Alien & Co., Bache & Co. and Reynolds & Co., Iijc.,
all of New York. Offering—Temporarily postponed.

May 25 filed 200,000 shares
Price—To be supplied by

corporate purposes.
rities Co., Dallas, Texas.

Sterling Precision Corp., New York
,
%
July 9 filed 379,974 shares of 5% cumulative convertible
preferred stock, series C, to be offered for subscription
by holders of outstanding common stock and series A
and series B preferred stock in the ratio of one share
of new preferred stock for each four shares of series A •
or series B preferred stock
and one share of new pre¬
ferred for each 10 shares of common stock held. Price—

Universal

Fuel & Chemical Corp.

May 17 (letter of notification) 300,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses.

Williamson Co.,- Cincinnati, Ohio
(letter of notification) 20,666 shares t>f class B
stock (par $1) to be offered for subscription by
class B common stockholders on a l-for-7 basit. Price—

Universal
June 27 filed

Office—825 Broadway, Farrell, Pa.
Investors, Inc.,

$6.84

(J. P.)

gram.

& Co., Inc., New York

July 1, 1981.
Proceeds—To re-

$30,000,000 of debentures due

.JPrlce—To be supplied by

amendment.

duce short-term loans, to retire $950,000 of 4%% first
mortgage bonds and $368,679 of 6% preferred stock of
subsidiaries. Underwriter—Goldman, Sachs & Co., New
York. Offering—Temporarily deferred.
A
.

1

Underwriters—A. C. Allyn & Co., Inc.,

Vance

Inc.

74,016 shares of common stock

filed

25

be

(par $5)

offered

Orleans, La.

Woods Oil & Gas Co., New

Aug. >29 filed 400,000 shares of common slock (par $1).
Price—$5 per share.
Proceeds—To retire outstanding
obligations. Underwriters—Woolfolk & Shober and How¬
ard, Weil, Labouisse, Fredrichs & Co., both of New
Orleans, La. Offering—Tentatively deferred. Statement

,

effective Feb. 28.

Wyoming Oil & Gas Co.

of common
Proceeds— ' I
For development of oil and gas properties.
Office—1529 - v: •?.
South Forest St., Denver, Colo.
Underwriter—Wayne - '

July 9 (letter of notification) 200,000 shares
stock. Price—At par (25 cents per share).

Under¬

Shreveport, La.
stock (no par).

Jewell Co., Denver,

Colo.

.

.

Youngstown Sheet & Tube Co.
June 5 filed 22,977 shares of common stock (no
offered in exchange for common

par) being!

stock of Emsco Man¬

ufacturing Co. on the basis of one share of Youngstown
for each three shares of Emsco; offer will expire on.

i

Aug. 8.
Youngstown presently owns 388,853 shares,,
representing 84.94% of the 457,786 outstanding sharesjoiJt
Emsco common stock. Statement effective June 25.

Prospective Offerings

Chicago,

Co., St. Louis, Mo.

Co., the selling, stockholder.

&

Proceeds—For working capital. Office
Ohio.
Underwriter—

initially for sale to the present stock¬
holders. It is not expected that more than 42,5(0 shares
will be sold immediately. Price—$10 per share.
Pro¬
ceeds—For lease of plant and purchase of eqiipment.
Office—Phillips, Wis. Underwriter—None.

to

Miami, Fla. •
reported early registration is expected
of 150,000 shares of common stock. Price—Around $4.2!>
per share. Proceeds — For expansion program. Under¬
writer—Arthur M. Krensky & Co., Inc., Chicago, I1L
Air-Vue Products Corp.,

Feb. 20

^ Universal-Rundle Corp., New Castle, Pa.
July 27 filed 50,000 shares of common stock (par $10).
Price—$18.50 per share. Proceeds—To Sears, Roebuck

I

-

Road, Cincinnati,

Maison

Wisconsin Wood Products;
June

300,000 shares of common

111., and Scherck, Richter

share.

*

>

Wilmington Country Club, Inc., Wilming on, Dei.
April 2 filed $1,500,000 of non-interest bearing deben¬
tures, due 1991, to be offered to the members of the
Club. Price—At par ($1,000 per debentures). Proceeds
—For construction of a golf house and other improve¬
ments. Underwriter—None.

«

Stevens

per

—3500

—

June 28 filed

-j

;;

common

share). Proceeds—To repay a $1,400,000 :
Price
$5 per share. Proceeds — To organize a new
/ note held by Equity General Corp., a subsidiary of
wholly-owned legal reserve life insurance company un¬
-Equity Corp.; to liquidate existing bank loans and for
der Louisiana laws.
Underwriter—Frank Keith & Co.,
general corporate purposes.
Underwriter—None, but
Inc., Shreveport, La.
Equity General Corp. has agreed to purchase at par,
Universe) Match Corp. (8/14)
plus accrued dividends, up to 290,000 shares of the new '
preferred stock not subscribed for by stockholders. Lat¬
July 20 filed $6,500,000 of convertible subordinated
ter already owns 137,640 shares (3.23%) of Sterling com¬
debentures due Aug. 1, 1976. Price—To be supplied by
mon stock, plus $1,800,000 of its convertible debentures.
amendment.
Proceeds—To finance diversification pro¬

'

2, 1956 f

Feb. 20

writer—Langley-Howard, Inc., Pittsburgh, Pa.

At par ($10 per

,

;v Thursday,-August

None.

Mo.

Union

Underwriter—None.

Kansas

stock

writer—None.

cents). Price—$5 per

Minerals,

(letter of notification) 599,600 shares of common
(par 10 cents). Price—50 cents per share. Pro¬
ceeds—For mining expenses. Office—204 Central Bldg.,

June 19

of notification)

Southwestern Resources, Inc., Santa Fe, N. M.
June 8 filed 1,000,000 shares of common stock (par

Office—3336 E. Van Buren
Underwriter—None.

expansion and operation.

For

St., Houston, Tex.
New York, N. Y.

15,001 shares of common
stock (par 10 cents) to be offered for subscription by
stockholders. Price—$10 per share. Proceeds—For ex¬
penses incident to development of oil and gas properties.
Office—801 Washington Bldg., Washington, D. C. .Under¬

JFeb. 27 (letter

.

Chronicle.

(508)

Underwriter—None.

Industries, Inc., Evanston, III.

it

was

Louisiana Pipe Line

American

Co.

July 2 it was announced company plans issue and sale
-i
7,000 shares of common
of $15,000,000 of cumulative preferred stock. Underwriter '
> stock (par one cent). Price—$7 per share.
Proceeds—
Eon
To selling stockholders.
May be determined by_competitive bidding. ProbableT
Office —t 2108 Jackson Ave.,
||
_stock. Prico—25 cents per share. Proceeds—For
Evanston, 111. Underwriter—Arthur M. Krensky & Co.,*^ biddersf White, Weld" &*Co.; The First Boston Corp. Ofexpenses incident to mining operations. Underwriter—
B. Reynolds & Co.. Salt Lake City, Utah.
Inc., Chicago, 111.
* -- fering—Expected in fourth quarter of 1956.
'•"* •
# Vita Food Products, Inc., New York
(8/13-14)
Suburban Land Developers, Inc., Spokane, Wash.
: American Petrofina, Inc.
.r.
June
14 it
was
announced that following proposed
;
Feb. 2 (letter of notification) 920 shares of 6% cumulaJuly 20 filed 89,480 shares of common stock (par 25
live non-voting preferred stock ($100 per share)
merger with Panhandle Oil Corp., American Petrofina,. : t >
and ~ cents), of which 69,480 shares are to be offered to public
Ltd. will offer to stockholders of Panhandle and Petror >
and 20,000 shares to 27 selected executives and key em¬
2,160 shares of common stock (par $10). Price—Of prefina of Belgium and to Canadian Petrofina the oppor<
fcrred, $100 per share; and of common, $15 per share.
ployees. Price—To be supplied by amendment. Proceeds
tunity to subscribe to additional "A" stock of American,
JProoeeds—For improvements and working capital. Of- v —To certain selling stockholders.
Underwriter—GranPetrofina. Price—$11 per share. Underwriters—White,.
Bee—909 West Sprague Ave., Spokane, Wash.
Under¬
bery, Marache & Co., New York.
/Weld & Co.; Blyth & Co., Inc.; and Hemphill, Noyes &cr
writer—W. T. Anderson & Co., Inc., Spokane, Wash.
Warner & Swasey Co., Cleveland, Ohio
(8/14)
Co;
Sun Oil Co*, Philadelphia, Pa,
July 19 filed 120,000 shares of common stock (par $1).
American Telephone & Telegraph Co. (10/1)
Price—To be supplied by amendment.
Proceeds—For
April 18 filed 229,300 shares of common stock. Price—At
July 18 company announced stockholders will vote Sept..
the market. Proceeds—To selling stockholders. Under¬
proposed expansion program. Underwriter—Blyth & Co.,
5 on increasing the authorized capital stock from 60,000,—
writer—None.',
„;
:v
Inc., San Francisco and New York.
.
\
000 shares to 100,000,000 shares of which about 5,750,Washington Natural Gas Co.
Sweet Corp. (Utah)'
000 shares are expected to be offered on or about Oct. i
Way 7 (letter of notification) 300,000 shares of common I- June 18 (letter of notification) 187,500 shares of com¬
for subscription by stockholders on the basis of one newmon stock
«tock. Price
At par ($1 per share).
(par 10 cents). Price—$1.25 per share. Pro¬
Proceeds — For
share for each 10 shares held on a record date in Sep¬
ceeds— For working capital.
Office — 217 Washington
mining expenses. Office—Continental Bank Bldg., Salt
tember to be fixed by the directors. Rights are to expireJLake City, Utah.
Ave., Clarksburg, W. Va. Underwriters—Barrett HerUnderwriter — Coltharp Investment
on Nov.
5, 1956. Price—$100 per share. Proceeds—For
rick & Co., Inc., New York, N. Y. and Ross, Borton &
Inc., Salt Lake City, Utah.
expansion of plant. Underwriter—None.

Inc., Tungsionia, Nevada 4
Jan. 4 (letter of notification) 1,200,000 shares of comStrategic Metals,

■

;

Jan.

24

(letter of notification)

,

/

*

'

*

•

.

.

.•

.

—

*

Target Uranium Corp., Spokane, Wash.
5 March 1 (letter of notification) 1,000,800 shares of com¬
mon stock
(par five cents). Price—20 cents per share.

Simon, Inc., Cleveland, Ohio.
Western

*

-

Securities Corp. of New

Mexico

Bldg., Spokane, Wash.

(letter of notification) 50,000 shares of common>
stock.
Price—At par ($1 per share). Proceeds—To start ,
a dealer or brokerage business.
Office—921 Sims Bldg.,

phere

Albuquerque, N. M.

Office
422 Paulsen
Underwriters—Percy Dale Lan- ;
and Kenneth Miller Howser, both of Spokane,

Proceeds—For mining expenses.
*

-

"

Wash.
Texas

Calgary Co., Abilene, Texas

of notification) 300,000 shares of common
(par 25 cents). Price—$1 per share. Proceeds—,
For drilling for oil and gas, expenses.
Underwriter—
Thomson Kernaghan & Co., Ltd., Toronto 1, Ont., Canada.

June 29 (letter

stock

Thermoray Corp.

.*

.

(letter of notification) 380,000 shares of com¬
mon stock
(par 10 cents). Price — 75 cents per share.
Froceeds—For inventory, working capital, etc. Business
—Electrical heating. Office—26 Avenue B, Newark, N. J.
June

29

Underwriter—Eaton & Co., Inc., New York.

Togor Publications, Inc., New York
(letter of notification) 299,700 shares of com¬
stock (par 10 cents). Price—$1 per share. Proceeds
—For working capital and general corporate purposes.
Office—381 Fourth Ave., New York, N. Y. Underwriter
—Federal Investment Co., Washington, D. C.
March 16

.

mon

•

(8/6-7)
July 20 (letter of notification) $250,000 of 6% subordi¬
nated debentures due July 1, 1976 and 40.000 shares of
Trinity Equipment Corp.

-common

stock (par $1) to be offered in units of $500 of

Feb. 13

be used to retire
1

;

outstanding series A and series B 5%

expansion program. Under¬
writers—Hemphill, Noyes & Co., New York; Courts &
Co., Atlanta, Ga.: and Equitable Securities Corp., Nash¬
ville, Tenn.
Offering: — Temporarily postponed. Not
expected until sometime in September or October.

first mortgage bonds, and for

White Sage Uranium

Corp.

(letter of notification) 15,000,000 shares of capi¬
Price—At par (one cent per share). Proceeds
—For mining expenses.
Office—547 East 21st South St.,
Salt Lake City, Utah.
Underwriter—Empire Securities

Feb. 13

tal stock.

—Manufacture
-

and

sale

of thermowells.

Office

Westfield Avenue East, Roselle Park, N. J.

—Schuster & Co., Inc., New York.




—

472

Underwriter

Stuart & Co. Inc.; Union Secu¬

and Kuhn, Loeb &

rities Corp.

Co. (jointly); The First

i

Froceeds—For

Price—$580 per unit.
expansion and working capital. Business

Probable bidders: Halsey,

Boston Corp.; Harriman Ripley & Co., Inc.
itWestland Oil Co., Minot, N. D.
Blackstone Valley Gas & Electric Co,
(9/11)
July 23 (letter of notification). $300,000 of 5% subordi¬
nated debenture bonds in $1,000 denominations. Prioe— -'April 30 it was reported company plans to issue 25,009
shares cumulative preferred stock (par $100). Proceeds
At par, plus interest from Aug. 1, 1956, to date of pur¬
chase.
Proceeds—For payment of current accounts and V —To reduce bank loans. Underwriter—To be determined
notes payable principally short time temporary financ¬
by competitive bidding. Probable bidders: W. C. Lang- ,
ley & Co.; Stone & Webster Securities Corp.; Salomon
ing. Underwriter—None.
Bros. & Hutzler; Kidder, Peabody & Co.; Harriman Rip¬
Wheland Co., Chattanooga, Tenn.
ley & Co. Inc. Bids—Expected to be received on Sept. 11,
May 23 filed $2,000,000 of convertible subordinated de¬
Registration—Planned for Aug. 15.
:
bentures due June 1, 1976, and 136,000 shares of common
Boulder Acceptance Corp., Boulder, Colo.
the company's account and 61,000 shares for a selling
July 16 it was announced company plans to offer and
stockholder.
Price — To be supplied by amendment.
sell 3,000,000 shares of its common stock. Price—At par
Proceeds—Together with proceeds from private sale of
($6 per share). Proceeds—To construct hotel; set up in¬
$1,500,000 4%% first mortgage bonds and $900,000 of
stalment loan company; and for working capital and
3-year unsecured 4Vz% notes to a group of banks, will

debentures and 80 shares of stock.

'

Underwriter—None.

Appalachian Electric Power Co.
May 31 it was announced company plans to issue and
sell in December $24,000,000 of first mortgage bonds.
Underwriter—To be determined by competitive biddings

Corp., Salt Lake City, Utah.

— »

<i

«

i

* ■»

general corporate purposes.
ment

Underwriter—Allen Invest¬
in Colorado.

Co., Boulder, Colo. Stock to be sold

California Electric Power Co.

000

(10/9)

announced company plans to sell $8,000,of first mortgage bonds.
Proceeds—For construc¬

July 16 it

was

tion program.

Underwriter—To be determined by com¬

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Shields & Co.; Merrill Lynch, Pierce, Fenner &
Beane and Kidder, Peabody & Co. (jointly); Blyth &
Co.,

Inc.;^The First Boston Corp., and Salomon Bros.
(jointly); Lehman Brothers: White, Weld

/ & Hutzlbr

r/; Co. -Bids—Expected to be received on

Oct. 9.

.

,

I

Volume 164

Number 5556. .»The Commercial and

<

Carolina

Power

March 22 it

was

&

Light Co.

Financial Chronicle

(11/27)

Fairchild

announced company plans to issue and

bidders:

Halsey, Stuart & Co Inc.; Kuhn, Loeb

Central

,

Illinois

Service

Public

-

eight shares held as
Sept. 28. About 99.3% of
presently outstanding stock is owned by American
Telephone & Telegraph Co. Price — At par ($100 per
share). Proceeds—To repay advances from parent. Un¬

Underwriter—Glore, Forgan

April
sell

;
-

it

2

was

not

been

plans

company

capital debentures due in

due

late

in

1971

in

and

to

issue

and

1966,

May 21 it
to

July 30 it

July 9 it

General

.

April

for

Transport Co.

Feb. 29 it

&

announced

Corp.,

Houston, Texas

application has been filed

an

on

issue and sell

Oct. 2.

•

announced

was

company

/'

'

Chicago, III.

/

Lackawanna

&

Western

'

Underwriter—May be G. H. Walker & Co;, St. Louis and
New York.'

RR.

(8/8)
.

Room

$117,15, 1971, inclusive,
robable bidders:- Halsey, Stuart & Co.
Inc.; Salomon
& Hutzler.

-

-

,

it Herold Radio

its Dolly Madison
Co., New York.

stock.

Underwriter—

1

on

Dec.

2

to

stockholders

of

Allen

B.

Du

common

dividend, contemplates that additional shares
stockholders.

Mont

stock

be

This

handled Du Mont Laboratories

class A stock

fi-

Stockholders of Laboratories
Oct. 10 approved formation of
Broadcasting firm.
ago.

Eternalite, Inc., New Orleans, La.
ay 28 it was reported company plans to issue and sell
bout 200,000 shares of class A stock.
Price
Around
4.50 per share.
Underwriter — Vickers
Brothers, New
ork.
;
—

•




and

Steel

Luxembourg

¬

American

depend

,

,

stock from

100,000 to

*

.]

May Department Stores Co.
/
July 19 it was announced that this company may under¬
take financing for one or more real estate
companies.

expire
;

;/

For

on

Aug.

13.

Price—$21

per

share.

Proceeds—

expansion. Underwriter—Lee Higginson Corp., New

York//;/////':'

■„

.

to be determined by competitive

ders:

.

mission for permission to issue and sell $30,000,000 ot
40-year debentures later this year. Proceeds—For con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &

market.

market

The

time, amount and terms

conditions.

National

National

mines, coking plants,

power

plants and iron

ore

mines.

the

Feb.
with

29

it

the

was

FPC

&

announced

Oil
an

Corp., Houston, Texas

application has been filed

for

permission to instruct a 961 mile
pipeline system to cost $105,836,000. Hearing on this
project started on July 9. Underwriters—May be Blyth
& Co., Inc., San Francisco, Calif.; and Scharff &
Jones,
Inc., New Orleans, La.
;

Hudson Pulp & Paper Corp.
June

25

it

was

reported

company

may

the Fall do
expansion.
Un¬
in

public financing. Proceeds—For
derwriter—Lee Higginson Corp., New York.

some

-/

—

March

Gas

.

Birmingham, Ala.

Business
Manufactures swimming pools and related
equipment. Underwriters—Mid-South Securities Co. and
Clark, Landstreet & Clark, Inc., Both of Nashville, Tenn.

that

Houston Texas

Pool Equipment Co.,

July 23 it was reported early registration is expected of
200,000 shares of common stock.
Price—Expected at $3
per share.
Proceeds— For general corporate purposes.

Proceeds — To be
loaned to firms in the Community for expansion of coal
on

as

will

offering will be unKuhn, Loeb & Co. and Van Alstyne, Noel
years

the

will

corporation, following iss

aboratories, Inc. of 944,422 shares of

n

Community,

European Coal

July 9 this Authority announced that an American bank¬
ing group consisting of Kuhn, Loeb & Co., The First
Boston Corp. and Lazard Freres & Co. has been ap¬
pointed to study the possibility of a loan to be issued

Broadcasting Corp.

some

V

| underwritten by Kalman & Co.. St. Paul, Minn.

High Authority of the

announced that Foremost
Dairies, Inc.
future date to give its stockholders the
right

ug. 10 it was announced that

Co.

common
.

on

.

was

purchase

ancmg

,

& Television Corp.
was announced stockholders on Aug. 10 will r Co. Inc.; Morgan Stanley & Co.
increasing the authorized common stock from
Minneapolis Gas Co.
/.v.//■,;.>
400,000 shares to 1,000,000 shares, in order to provide
April 16 stockholders approved an increase in the
Options (to officers and employees), and for future fi¬ / authorized common stock
(par $1) from 1,700,000 shares
nancing. Underwriters—Weill, Blauner & Co., New York,
to 2,500,000 shares.* Previous offer to stockholders was
and Hallowell, Sulzberger & Co.,
Philadelphia, Pa.

Dolly Madison International Foods Ltd.

erwritten.

^

,

mature in 30 equal semi-annual instalments
of
00 each from Now 15, 1956 to
May

its

increasing authorized
200,000 shares.
'

on

July 25 it

vote

o

to

ex-

bidding. Probable bid¬
Smith, Barney & Co. and Goldman, Sachs & Co.
Beane and Lehman Brothers
(jointly); Carl M. Loeb, ; (jointly); Salomon Bros. & Hutzler; Harriman Ripley &
Co. Inc. and Union Securities Corp. (jointly);
Rhoades & Co. Bids—Tentatively scheduled to :be re*
Kidder,*
ceived on Sept, 10.
Peabody & Co. and Drexel & Co. (jointly); The First
/ Boston Corp.,
' - J;,. :
Haskelite Manufacturing Co.
Michigan Bell Telephone Co.
July 16 it was reported company may be considering sale
of about $1,000,000 to $1,500,000 bonds or debentures.
April 19 company applied to the Michigan P. S. Com¬

\

\

by the company up to noon (EDT)
2008, 140 Cedar St., New York 6,
it of $3,510,000 equipment
certificates, series N, to be dated May 15, 1956, and

ffered

and

Probable bidders:

by competitive bidding. Probable bidders: Stone & Web-

ids will be received

on

issue

{ pansion program. Underwriter—The First Trust Co. of
Lincoln, Neb. Stock Increase—Stockholders will vote

(Texas)

/ster Securities Corp.; * Merrill Lynch, Pierce* Fenner &

'

T. Y., for the purchase from

uance

-/r

to

Proceeds—For

r

xy." Underwriters—Morgan Stanley & Co. and
Clark,,;
odge & Co.
.V

Mont

stock.

'

F,.'Elliott,* President; "on March 18 stated in part: "To
eet the cost of present proposed
capital expenditures,
t appears that some additional
financing may be neces-

Du

plans

company

common

<

v

&

Co./'/'./;/.'■ -:/.v
reported

v

(jointly).
to ll a.mi. (EDT) on
\/W' *
i f :

Ids—^Expected; tO' be Reived
ug. 28.'
' '
'/•
*'■

en

was

additional

some

.

.

a

sell

Steel

it

.

(8/28)
plans to issue and

$304)00,000 of debentures due 1981. Underwriter—
o
be determined by* competitive
bidding.
Probable
idders:- Halsey, Stuart & Co.
Inc.; Morgan Stanley &
and The Finft Boston
Corp (jointly); White, Weld
Co. and' Paine,. Webber* Jackson & Curtis

it

3

Metropolitan Edison Co. (11/13) '
Halsey, Stuart & Co. Inc.; % July 2 it was reported that
company is considering the
Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Beane
sale of $10,000,000 first mortgage bonds due 1986. Under¬
and White, Weld & Co.
(jointly); Salomon Bros. & Hutz¬
writer—To be determined by competitive bidding. Prob¬
ler and Union Securities
Corp. (jointly); Kuhn, Loeb &
able bidders: Halsey, Stuart & Co. Inc.;
White, Weld &.
Co. and A. C. Allyn & Co. Inc.
(jointly); Lee Higginson > Co* Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexet
Corp. and Carl M. Loeb, Rhoades & Co. (jointly); Stone f & Co.
(jointly); The First Boston Corp. Bids—Expected
& Webster Securities Corp.
Bids—Tentatively scheduled
on Nov. 13.
■'
v;:./,/ • ; v
/."? /
to be received on Sept. 10. '
y
Metropolitan Edison Co.
Gulf States Utilities Co. (9/10)
April 16 it, was reported company may issue in July
or
August;, depending upon market conditions, about
July 14 company announced that it intends to offer pub¬
$5,000,000 of preferred stock (in addition to about $5,000,licly 90,000 shares of common stock (no par). Proceeds—
000 of bonds)t Underwriter — For preferred stock also
To repay bank loans.
Underwriter—To be determined

ell

15

Marsh

July
•

announced this

repay bank loans and for construction pro¬
Underwriter—To be determined by competitive

bidding.

(10/2)

Consolidated Natural Gas Co.

tends at

was

ceeds—To

Bids—Expect¬

ed to be received

ov.

Baxter, Williams & Co. (jointly); Smith, Barney & Co.

/July 14 it was announced company plans 'to 'issue and
sell $13,000,000 of fft*st mortgage bonds due 1986.
Pro¬

a

company may

ros.

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
W. C. Langley & Co.; Blyth & Co., Inc. and The First
Boston Corp. (jointly); Blair & Co., Incorporated and

-

Underwriter — To be deter- 5
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; Morgan
Stanley & Co.

rust

,

mortgage

To be determined by competitive

—

$30,000,000 of debentures.

at

—

Proceeds
For development of branch stores and re¬
corporation is planning a
gional shopping centers. Underwriters—Goldman, Sachs
5,000-acre industrial development on two sites midway?
i & Co. and Lehman Brothers, New York.
/
between Dallas and Fort
Worth, Tex.
Carl M. Loeb,
Meadowbrook National Bank,. West
Rhoades & Co., New York, who has acquired a sub¬
Hempstead,
New York /. *-J'v
stantial interest in the
:; /••-/ /; "*/ V -•
corporation, may handle any new
\>->>/>-/ ; -*
July 24 stockholders were offered 104,500 additional
financing that may be necessary.
shares of capital stock (par $5) on a basis of one new
Gulf States Utilities Co. (9/10)
.c share
for each *13 shares held as of July 12; rights to

•

gram.

Aug. 8,

"

,

Underwriter

■

Columbia Gas System, Inc.
Feb. 15 it was announced

n

bonds.

,

was

Delaware,

•

,

| sell next Fall $20,000,000 to $25,000,000 first

Stone & Webster

July 16 it

<

Crane Co.,

stock will be offered

stockholders before April,
Proceeds—To repay bank loans,
etc., and for con¬

(jointly); Paine, Webber, Jackson & Curtis
Securities Corp. (jointly); White,
Weld & Co. and Kidder,
Peabody & Co. (jointly). Bids
—Tentatively expected to be received, on Sept. 12.

Underwriter—Loewi & Co., Mil¬

Transmission

it

increasing

/ Z; /'X- :'£

common

Great Southwest Corp.

proposal

a

Long Island Lighting Co.
*
April 17 it was announced company plans to issue and

Hutzler

and

565.7 mile pipeline
system to cost $68,251,000. Underwriters—May be Leh-.
man Brothers and Allen &
Co., both of New York.

12

common

approved

/

Securities Corp.; Kuhn, Loeb & Co. and Salomon Bros.

Inc.

with the FPC for construction of

June

.

Corp.

Co, Inc.; Equitable

July 16 it'Was reported company plans to issue and sell
15,000 shares 6f 6% cumulative convertible preferred
stock (par $10) and 28,000 shares of common
stock. Pro¬

Coastal

issue of

new

stockholders

Halsey, Stuart & Co. Inc.; The First
Inc. (jointly); Equitable
'Securities Corp.; White, Weld & Co. and Shields & Co. "
(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
/and Union Securities Corp. (jointly); Lehman Brothers
and Bear, Stearns & Co. (jointly). Amount and
timing /
has not yet been determined (probably not until first
half Of. 1957). / ;
;:///\

Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart &

by certain stockholders). Proceeds—From sale
of preferred to provide iunds for
expansion. Office—
Wisconsin Rapids, Wis.
Underwriter — Loewi & Co.,
Milwaukee, Wis.

waukee, Wis.,

a

24

Boston Corp. and Blyth & Co.,

General Telephone Co.; of California
(9/12)
July 16 company announced plans to issue and sell about
$20,000,000 of first mortgage bonds, series F. Proceeds—
To discharge bank loans and for
construction program.

be sold

ceeds—For expansion.

Utilities

.

City Power & Light Co.

Probable bidders:

future

pos¬

subscription by

1957.

reported early registration is expected
convertible preferred stock (par
and 66,500 shares of common stock (the latter to

Plastics,

near

Underwriter—Straus,

struction program.

was

Chippewa

Public

new

bonded indebtedness of the company by
$20,000,000. Un¬
derwriter — To be determined by competitive
bidding.

April 2, A,. F. Tegen, President, said that the
company
plans this year to issue and sell $28,500,000 of new bonds
and $14,000,000 of new preferred stock. It is also
sible that

of 34,600 shares of 6%

$10)

purposes.

/

.

sell

Chicago, 111.,

Corp. (jointly) ;-Glore, Forgan & Co.; The First Boston
Corp.; Lehman Brothers and Bear, Stearns & Co. (joint¬
ly). Common stock will probably be offered first for
subscription by stockholders,
i
Motor

reported company plans in the

V;.;-'-......'

was

Kansas

180,000 shares of common stock (par
Price—About $11 or $12 per share. Proceeds—

$2.50).

(jointly); Kidder, Peabody & Co. and Union Securities
Corp. (jointly); Merrill Lynch/Pierce, Fenner & Beane.
"(3) For common stock—Blyth & Co., Inc., Merrill Lynch,
Pierce, Fenner & Beane and Stone & Webster Securities

Wisconsin

was

and

For general corporate
Blosser & McDowell,

ferred stock-^Lehman; Brothers
and[ Bear, Stearns; & CO.
(jointly); Blyth & Co., Inc. and The First Boston Corp.

Central

issue

to

by competitive bidding. Probable bidders: (1) For. bonds
i—JHalsey, Stuart. Bi * Co. Inc.; Kuhn; Loeb & Co. and A,
C. Allyn & Co. Inc. (jointly); Salomon Bros. &
Hutzler;
Blyth & Co.; Inc.r Kidder, Peabody & Co. and Merrill
'Lynch, Pierce," Fenner & Beane <jointly); Blair & Co.
Incorporated; Equitable Securities Corp.'(2) For pre¬

on

borrow

finance its

mined. It is also possible, if favorable money conditions
prevail at the time, that some portion of the 1957 re-- /Ar. General Merchandising of Milwaukee

for new money may be obtained in the
second half of this year. Underwriter—To be determined

share for each

new

announced that the company is arranging
$100,000,000 from institutional investors to
major expansion program to involve ap¬
proximately $113,000,000. Underwriter—The First Bos¬
ton Corp., New York.
'
•.
/

May.'

was announced that
company plans $5,000,000
additional financing in near future. Proceeds—To
go to
Securities Investment Co., a
subsidiary. Underwriter—
G. H. Walker &
Co., St. Louis, Mo.

quirements

one

Kaiser Steel Corp.

April 18 it

deter¬

of

Aug. 31; rights to expire

derwriter—None.

about

General Contract Corp., St.
Louis, Mo.

program is Estimated at about $5,000,000 and will be
obtained from the sale of securities im the second half
of this year.
The class of security to be sold and the

have

reported

$15,000,000 of debentures

was

the

$10,000,000
$3,500,000
of common stock.
Underwriters—Paine, Webber, Jack¬
son &
Curtis and Union Securities
Corp; Registration

of

Co.

transaction

at rate

& Co., New York..'

General Acceptance Corp.

—Expected

timing of the

Bell Telephone Co. (8/31) announced the company plans to offer tO
its stockholders 580,531 additional shares of capital stock
Illinois

of

■

May 16, M. S. Luthringer, President, said the new money
required to finance the company's 1956 construction

exact

Corp.

future.

'

„

Instrument

June 29 it

&

Securities Corp.; Blyth & Co., Inc.; Kidder, Peabody &
Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly).

J

&

3a

11, John H. Clough, President, announced, that
working capital financing will be required in the near

Co. and A. C. Allyn & Co. Inc. (jointly); W. C.
Langley
& Co. and The First Boston Corp. (jointly); Equitable

Bids—Scheduled for Nov. 27.

Camera

June

sell $15,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬
able

(509)

Steel

Corp.

the company announced that it is estimated
construction expenditures planned to start in
current year and to be completed in mid-1959 will
12

total

amount

Kuhn,

to

minimum

a

Loeb

&

Co.;

of

$200,000,000.

Harriman Ripley

Underwriters—
& Co. Inc.; and

The First Boston Corp.
Natural

Gas

Pipe

Line Co.

of America

reported company plans to issue and sell
late this Spring $35,000,000 of first mortgage bonds duo
1976.
Underwriter—If determined by competitive bid¬
Feb. 20 it

was

ding, the following may bid: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Lehman Brothers and Union Secu¬
rities Corp. (jointly).
o

Continued

on

page

34

i

4.

The Commercial and

Financial Chronicle... Thursday, August 2,

1950

(510)

34

England Electric System

New

Jan.

it

3

announced company plans to merge ita
County Electric Co., Lowell Electric

was

to construction

subsidiaries, Essex

Light Corp., Lawrence Electric Co.,
Co. and Amesbury Electric Light Co.,
during 1956.
first mortgage

into one company

This would be followed by a $20,000,000
bond issue by the resultant company, the

at

issue and sell

540,651.75 shares of Pittsburgh Rys. Co.
per share.

reported company plans to finance

(costing about $40,000,000)
and treasury funds in
Underwriter—Probably Blyth & Co.,

program

part of year.

David

18

C.

Bintliff, President,

has filed

Sabine River to the

Public Service Co. of Indiana, Inc.

Gulf Coast of

July 30 it was reported company may issue

Mississippi. It is estimated that this gather¬
ing system will cost approximately $150,000,000. Type
of financing has not yet been determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
notes, convertible into preferred stock at maturity, and
common stock).
Underwriter—Salomon Bros. & Hutzler,
the State of

Under*

(10/16)
and sell about

Proceeds — To retire

$30,000,000 first mortgage bonds.

Underwriter—
competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Blyth & Co.,.Inc.; The
First Boston Corp.; Harriman Ripley & Co. Inc.; Glore,
Forgan & Co.; Kuhn, Loeb & Co., Salomon Bros. &
Hutzler and Union Securities Corp. (jointly). Bids—Ex¬
bank loans and for construction program.

Southern

/

annual instalments.

of the

Corp.; Blyth & Co. Inc.; Kuhn, Loeb & Co.; Union
Securities Corp. and Salomon Bros. & Hutzler (jointly);
Harriman Ripley & Co. Inc. and Stone & Webster Secu¬
rities Corp. (jointly). Bids—Expected to be received up
to 11 a.m. (EDT) on Oct. 17. ,
Ohio

Power Co.

July 2 it

sell 60,000 shares of cumulative preferred stock (par
$100). Underwriter—To be determined by competitive
bidding.
Probable bidders: The First Boston Corp.;
Blyth & Co., Inc.; Kuhn, Loeb & Co.; Union Securities
Corp. and Salomon Bros. & Hutzler (jointly); Harriman
Ripley & Co. Inc. and Stone & Webster Securities Corp.

(jointly); Lehman Brothers.
to be received up to

11

a.m.

Bids—Tentatively expected
(EDT) on Oct. 17.

★ Oklahoma Corp., Oklahoma City, Okla. July 26 it was announced company has been authorized
by the Oklahoma Securities Commission to issue and
sell in the State of Oklahoma

$20,000,000 of its capital
stock
($10,000,000 within organization and $10,000,000
publicly). Proceeds—To organize or acquire seven sub¬
sidiaries.

—None.

Business—A
.

■

May

17

holding

company.

Underwriter

& Electric

stockholders

voted

Co.

authorized

common

to

stock

5,000,000 shares. Company has
any

equity financing.

increase

the

authorized

for

any

com¬

bidding. Probable bid-

bers: Merrill Lynch, Pierce, Fenner & Beane and

White,

(jointly); The First Boston Corp.; Lehman

Brothers and Blyth & Co., Inc.

(jointly); Smith, Barney

Co.; Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.
Pacific Northwest Pipeline
Corp.
20

C.

R.

sold
were

in

Williams,

connection

entered

into




(jointly); Morgan Stanley & Co. and Drexel &
(jointly).

Co.

Puget Sound Power & Light Co.
Feb. 15 the company announced

that it estimates that its
program
for
the
years^ 1956-1959 will
$87,000,000, including $20,000,000 budgeted for
1956.
This large expansion, the company says, can be
financed wholly by debt and from internal sources. Un¬
derwriter—If determined by competitive bidding, may
include Halsey, Stuart & Co. Inc.; The First Boston Corp.

construction
amount to

Racine Hydraulics

Southern Union Gas Co.
April 19 it was announced company is considering is*
suance and sale to stockholders later this year of some
additional common stock on a pro rata basis (with ar
oversubscription privilege). Underwriter—None.

:

Tampa Electric Co.(8/29)
-July 9 it was reported company plans to issue and sel
$10,000,000 of first mortgage bonds due 1986. Proceeds--'

at

President,

common

with
the

reported that company plans to issue and
common stock.
Underwriter—Loewi

July 9 it

was

sell

additional

&

some

Co., Milwaukee, Wis.

Offering—Expected in Sept.

mined at competitive

Stuart

authorized

approved a proposal to increase
preferred stock by 100,000 shares (par

$100), of which it is planned to issue 50,000 shares later
1956.
Underwriter — The First Boston Corp., New

\.■,, /-V/;

■; York.

announced

stock (par $1)

subscription

are

contracts

time of the original

income

Louis-San

5%

in

ferred

1, 2006, and

the basis of $100
of debentures and one-quarter of a share of common
stock for each share of preferred stock.
The exchange
will begin early in September and expire at 3 p.m.(EDT)
on
Oct. 1, 1956.
The Chase Manhattan Bank, of New
York
City, has been designated as exchange agent.
Dealer-Manager—Union Securities Corp., New York.
South

March 9,
is

Carolina

(par

Electric

$100)

&

on

Gas

Co.

S. C. McMeekin, President, announced that it

expected that $10,000,000 of new

up

Corp.

Bids-^

to 11 a.m. (EDT) on Aug. 2i

10, Gardiner Symonds, President, announced tha

„

Jothpany plans

■|o.nds

;

-

v

to sell: about $50,000,000 of mortgag

late in the third quarter or early in the

Carter, of 1956.

Proceeds

*

For expansion

fourt!

progranj

p^erwritersi--Stohe & Websteir Securities Corp.; Whit*
$f*eld & Co. and Halsey, Stuart & Co. Inc.
..'--I

feUnited States Rubber Co;
29, H; Ev 'Humphreys, Jr., Chairman, stated ths
'issuance of convertible debentures is one of severs
$bs$ible methods the company has been considering f
arising $50,000,000 to $60,000,000 which may be need
plant expansion and working capital. He added that,

Convertible debentures
$fro

rata to

common

are issued, they will be offen
Underwriter—Kuh

stockholders.

:>LOeb & Co., New Yoik.

,

jV

£Jtfne 21, Wayne Wallace, President/announced compai

Jpllris in near future to offer to its 200 stockholders 50(
jpOQ additional shares of common voting stock at ra
more

than 2,500 shares to each stockholder. Rigt

vWill expire on Aug.

1.

Unsubscribed stock will be c

|^^d to residents of Oklahoma only. Price—$2

sha:

per

^Underwriter—N one.(9/25)

plans to issue and &

—••••

debentures, series A, due Jan.

stock, series A

Stone & Webster Securities

Feb. 6 it was announced company

exceeding 154,000 shares of common stock (no par)
exchange for not exceeding 616,000 shares of 5% pre¬

that

financing

(9/5)

Ry.

Inc.;

Sachs & Co.; Kidder, Peabody & Co.

Virginia Electric & Power Co.

:<><vjyv-•J

not

to be
which

Francisco

Co.

bidding. Probable bidders: Halsey'

,

stockholders

16

&

feoldman,

Wf-not

if.}/., Rochester Gas & Electric Corp.
May

Underwriter—To be deter¬

construction program.

For

University Life Insurance Co., Norman, Okla.

& Machinery, Inc.

★ St.

to be determined by competitive

March

probable bidders include Halsey, Stuart & Co. Inc.; The
First Boston Corp.; Kuhn, Loeb & Co., and Lehman

July 20 the Interstate Commerce Commission authorized
the railroad to issue not exceeding $61,600,000 of 50-year

3,681,000 shares to
immediate plan to do

Underwriters—(1)

about 280,000 shares of

finance

no

stock (probably first to
stockholders) — Merrill
Lynch, Pierce, Fenner & Beane. (2) For preferred stock,

&

help

from

mon

Weld & Co.

Proceeds—To

in

preferred stock from 240,000 shares to 500,000 shares and
the

determined.

been

not

construction program. Underwriters—For any debenture
bonds r**. may be determined by competitive bidding;

the

.;■■■;_ .V

Oklahoma Gas

.

securities to be issued and the time of sale

Brothers

(10/17)

reported company proposes to issue and

was

>have

Bros. & Hutzler.

||

Tennessee Gas Transmission Co.

able bidders: Halsey, Stuart & Co. Inc.;
ton

(EDT)
equips

certificates, series UU, to mature in 15 equal
Probable bidders: Halsey, Stuart &

ment trust

April 16, Lyle McDonald, Chairman, estimated that re¬
quirements for new capital this year will be approxi¬
mately $80,000,000 to $85,000,000. The types and amounts
new

mortgage

Aug. 2 for the purchase from it of $9,660,000

on

r

July 2 it was reported company plans to issue and sell
$28,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬

The First Bos¬

/

(8/2)

Pacific Co.

jEkpeeted to be received

Public Service Electric & Gas Co.

(10/17)

$4,000,000 of first

estimated

an

Bids will be received by this company up to noon

pected to be received on or about Oct. 16.

Power Co.

.

announced company plans to sell in the

was

1956

of

bonds, series C, due 1986. Proceeds—For construction.
Offering—May be placed privately.
/

To be determined by

New York.

Ohio

Southern Nevada" Power Co.
Fall

Labor Day

Proceeds—For expansion program.
writer—Goldman, Sachs & Co., New York.
(Sept. 3).

an

from the

Louisiana

^

June 27 it

C6. Inc.; Salomon

fering of 25-year debentures sometime after

announced com¬

application with the Federal Power
Commission for a certificate of necessity to build a
364-mile submarine gas pipeline off-shore the coast of

pany

Equitable Securities Corp. and Drexel & Co. (jointly);
Lehman Brothers; Harriman Ripley & Co. Inc. and Gold¬
man, Sachs & Co. (jointly); Blyth & Co., Inc. and Kidder,
Peabody & Co. (jointly); Morgan Stanley & Co.

Offering—Ex¬

July 16 the company announced plans to negotiate the
borrowing of $70,000,000 probably through a .public of- :

Texas

Offshore Gathering Corp., Houston,
Nov.

Halsey,

Procter & Gamble Co.

Inc.

by competitive bidding.
Probable bidders:
Stuart & Co. Inc.; Union Securities Corp.,

determined

Publishing Co., Boston, Mass.
July 16 it was announced that a public offering of $4,000,000 5% three-year notes is planned if John S. Bottomly, a Boston attorney, does not exercise his option to
purchase the physical assets of the Boston Post by
July 31. Underwriter—Lamont & Co., Inc., Boston, Mass.

through issuance of debentures
latter

on

Post

its

Proceeds—Together with other funds, to construct
$150,000,600 steam electric generating plant
the Coosa River in Alabama.
Underwriter—May be

and operate a

Price—About $6

York.

in the Fall offer

may

ties.

pected in September.

Northern Natural Gas Co.
was

Smithers & Co., both of New

F. S.

„

r

Southern Electric Generating Co.

offering of approximately 200,000 shares of capital stock,
consisting of shares held in the treasury and by certain
stockholders. Underwriters—Morgan Stanley & Co. and

York,

construction

.

of California

May 18, it was announced that this company, 50% owned
by Alabama Power Co. and 50% by Georgia Power Co.,
subsidiaries of Southern Co., plans to issue debt securi¬

Fuel Co., Inc.

★ Pocahontas

announced company plans to offer to its
stockholders rights to subscribe for additional capital
stock (following proposed 2-for-l split up - to be voted
upon Aug. 3). Underwriter—Morgan Stanley & Co., New

1956

/;

Fenner & Beane.

July 27 it was announced that following 100% stock dis¬
tribution to stockholders of record Aug. 28, 1956, a public

June 8, it was

July 19 it

Philadelphia,

Bldg.,

Pittsburgh Rys. Co.
May 4 it was announced that Standard Gas & Electric
Co. will offer to its stockholders rights to subscribe for

Aviation, Inc.

North American

Station

Suburban

1811,

& Hutzler.

Proceeds—Tb repay
borrowings. Underwriter—None.

temporary

.

$15,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill Lynch, Pierce,

Aug. 15,

on

and including April 1, 1971. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Salomon Bros.

of outstanding stock.

69.21%

to noon (EDT)

from April 1, 1957 to

England Telephone & Telegraph Co. (8/29)
offering to stockholders
613,010 additional shares of capital stock (par $100)
the rate of one new share for each five shares held
of Aug. 29.' American Telephone & Telegraph Co.

owns

Room

up

for the purchase from it of $6,873,000 equipment
certificates, series FF, to be dated April 1, 1956,
and to mature in 29 equal instalments of $237,000 each

New

as

(8/15)

received

Probable bidFirst Boston Corp.

Blyth & Co., Inc.;
Bids—Tentatively expected to be re¬

Southern Counties Gas Co.

trust

June 20 directors authorized an
at

be

will

v

bidding.

competitive

by

Kuhn, Loeb & Co.
ceived on Sept. 5.

Pa.,

$10,000,000 of first mortgage bonds during October
of 1956.
Underwriters—To be determined by competi¬
tive bidding.
Probable bidders:
Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union
Securities Corp. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable Se¬
curities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).

of

determined

be

bers: Halsey, Stuart & Co. Inc.; The
and Dean Witter & Co. (jointly);

Jan. 30 it was reported company

Bids

announced company plans to

(Del.)

& Metals Corp.

(9/5)

California Edison Co.

Southern

July 5 it was announced company plans to sell not ex¬
ceeding $40,000,000 of first and refunding mortgage bonds.
Proceeds—For construction program.
Underwriter—To

9,

* Pennsylvania RR.

England Power Co.

Jan. 3 it was

Dominion Securities
Registration — Ex¬

Walter E. Seibert, President, announced that
company will soon file a registration statement with the
SEC preparatory to an equity offering planned to take
place later this year. Business—To explore, drill and
operate oil, gas and mineral properties in the United
States, Cuba and Canada. Office—120 Broadway, New
York, N. Y.
April

—

New

Cuba Oil

Pan

yet been determined. Underwriter
May be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co.. Salomon Bros. & Hutzler, Union Securities Corp. !$
and Wbod, Struthers & Co. (jointly); Lehman Brothers;
The First Boston Corp.; Equitable Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane, Kidder, Peabody &
Co. and White, Weld & Co. (jointly).

to obtain a part

company proposes

requirements from the sale of $5,000,000 of preferred stock and the balance from the
private sale of $5,000,000 principal amount of bonds.
Underwriter—Kidder, Peabody & Co., New York.

Underwriters—White, Weld &

program.

Co.; Kidder, Peabody & Co.; The
Corp.; and Union Securities Corp.
pected soon.

Haverhill Electric

of which has not as

name

tion program.
The
of its new money

April of 1955. Price—$10 per share. Proceeds—To¬
gether with funds from private sale of $35,000,000 addi¬
tional first mortgage bonds, and $10,000,000 of 5.6%/
interim notes and borrowings from banks, will be used

In

33

Continued jrom page

money

will be

re¬

quired in connection with the company's 1956 construc¬

of

$20,000,000

first

and

refunding

bon

mortgage

^Underwriter—To be determined by competitive biddii
/Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Lc
bj 'Co., American Securities Corp. and Wertheim & (
%jointly); Salomon Bros. & Hutzler; Stone & Webs

^Securities Corp.; White, Weld & Co.; Union Securit
fcorp.
£

'

Bids—To be opened on Sept. 25.

Washington Gas Light Co.

Sune

7

it

was

announced company proposes to

finai

proposed new construction of pipeline in Virginia
cost about $3,380,000 from funds generated by operatic
fcale of common stock and temporary

^Underwriter

—

bank borrowir

The First Boston Corp., New

Johnston, Lemon & Co.,

Washington, D. C.

York; i
-

,

Volflrtid 184

Number 5556... The Commercial and Financial Chronicle
'

•uir

responsibility,' has become

[Government "Social Responsibi!iiY' Projects
I

.

Generate Rather Than Alleviate "Evils"

Guaranty Trust-'Survey" measures'the self-defeating popular

•

_

con-

«"make

mockery of

a

Many

projects

undertaken

governments in the
fial responsibility"
lilihg

put- are

by

name of "soare not only

achieve

to

plan

any

their

generating

purpose

evils

worse

hap they aim to alleviate, hither

Jecause public opinion forces
ernments

violate

to

for

economic

gov¬

„

or

and

money

|iemselves

projects

basic

in

are

conflict

The importance of the step did
not lie so much in changes in the
terms and conditions of specie re¬

in the fact

as

that de¬

replaced deflation as
the preferred method of correct¬
ing financial maladjustments."

fith those rules, according to the

this
background
of
currencies, numerous
jurvey," published by Guaranty forms : of "social responsibility"
|rust Company of New- York.,:
are operating in a positive way to
iinan cial Responsibility Is Needed undermine the purchasing power
of money, according to the "SurI Declaring^ that • "financial ?re* vey." "Certainly one of the most
>onsibility is the beginning of
powerful is the political pressure
tal
social
responsibility,". the for continuous 'full
employment.'
Survey" points out that most of

Lugust

issue

"The

of

Guaranty

between

ons

in the rela-

people

their

and

internments during the past gen-

[ation have been adopted
of

me

"social

rovernments

in the

responsibility."

have

been

called

to assume the 'social respon-

>on

bility'

of

regulating

fe- and protecting

economic

against
of hazards. How

(thin

individual

m

mtal

compulsion
of

sans

is

with

dealing

is

governthe
best
them

is

be

met

without

higher
ise: of
financial responsibility
an most peoples have shown in
:•

recent

past,

are

or

with

deavor

a

showing

le

budgets, excessive tax burhs, inflationary monetary poli-

[ke

and
a

currency : depreciation
mockery of any plan for

jnomic

the

security

'social

or

jus-

[The most important single step
financial

v

o+J5. t£!Su~

persons

which

to

this

meet

The

inflationary

which present-day

ernments

gov¬

expected to supply.
"The cost of these services is so
are

great that
very

the tax burden

grows

oppressive, and the demand

for tax relief
resistible.

becomes

almost ir¬

irresponsibility

Cincinnati

a

out, and this tends
develop into national habit.

to

"In

ous

so

far

as

more

less satisfied with the

slender proportions of the list of
prospects.

The hiatus will

Ohio—Raymond opportunity to

afford them

to work

go

Rooney, Jr. has become con- and ends that have been piling up
with
Gottron, Russell & from recent emissions as invesCo., Inc., Union Commerce Build- «tors have been reluctant to come
ing, members of the New York into the market with any real enand Midwest Stock Exchanges.
.
thusiasm. ' .
What a sponsoring group can
encounter in the prevailing situa¬
Joins Merrill, Turben
tion was brought out quite vividly
(Special to The Financial Chronicle)
pt fvttt

Merrill

V

Twui
Turben

x

&

a ivrn

is

r^
Co.,

nov^ with

MerriU

Merrill,
Com-

Inc., Union

Building, members of

merce

York

and

the

toward

r»vvi«

Midwest

the

Stock

g

close

of

last

week

when the syndicate which took

down Mountain States Telephone
&

Telegraph

tethg

back

Co.'s
end

£*£ out
The

P. T. Bollinger With

of

3%'s

issue

of

Mav

which

to *" market

"

had

been

originally

""J**'' i00'9®6's"ppe,d ?'' !ow

°f 97 ^ bid and 97 ^ asked" they

have not sotten ,far away fTOm
l°w

in

range

the

interval

& Co.

a

the

book

In

our

The "Premium"
fourth

and

to

and

confidence

support

money.

the

situation, the subscribing stockholder
the outstanding stock selling "at a prem¬

value

of

That the dollar, while shrunken, has held

value better than almost any other currency in the

that is, above the equity value (the actual present ATT
he is protected. In the case of American Tel and Tel he
already owns 10 shares with book equity worth $1,500. The effect

explain the sustained savings
supply in the United States. Borrowers must be
prepared to pay interest rates which afford the
saver

better

to

break.

But,

if

be granted
sound money policies* and reasoned fiscal policies,
we

and

a

need fear

no

we

can

lack of money to finance

growth

progress."—First National City Bank

Let

us

all

—

voters and

heed.




politicians alike

take

a

ada¬

regard what
proper return on in¬

vestment rponey/

Underwriters and dealers alike
into the same "not interested"

v

run

sign

invariably
at the
anything in the way
material yielding less than

almost

moment

of new

on

4.25%.

,

situation is pointed

The

what

by

up

the Mountain
issue late last
week and just yesterday in the
case
of Union Electric Co.'s $40
happened

States

million
a

in

Telephone

of

3%s, brought out just
ago
at a price of

fortnight

102.367.

Turned

the
level
full three points^ under
loose

by

syndicate, this issue found
almost

a

was

a

reported as

insurance

the

industry

for its own ideas

on

remained

it

return"

The

bid

best

of

for

a

was

100.65

with

making preparations to
101.685 for a yield of
Other bids ranged down

4.62%.
to

equity of the $45. SO he is even on the transaction equity-wise.
Thus, we see that' the subscribing stockholder is protected

100.13

100.049.

and

Public offering never developed,

•

however, since Michigan, Wiscon¬
sin subsequently turned down all

«against dilution in each situation.

three bids.'

v.:-Vv

Gravy for the Shareholder
Where the old dividend is continued on the new
-

capitalization,

With

typified by the ATT's repeated policy, the subscribing stockholder
gains the benefit of an effective increase in his dividend yield,
because of the maintenance of the former dividend payout on the

benture issues

ATT's financing through seven

Dempsey-Tegeler

(Special to The Financial Chronicle)"

ST.

LOUIS,

•'

J.

Mo. —George

Frangoulis is now connected with
Dempsey-Tegeler & Co., Tenth
and Locust Streets, members of

book value.

The result of

convertible de¬

during the past 10 years, with the $9 dividend main¬

the New York and Midwest Stock

tained, it is calculated, has been to increase the effective cash
dividend by an average of $1.47 annually.
The realistic implication of the present American Tel and

Exchanges.

*

Tel

Joins

financing arrangement is that the management is combininggiving a slight boon to the existing share¬

'the double purpose of

%

capital.

ST.

Summary and Conclusions

(1) Where the outstanding stock is selling at a "discount," that
is, below its equity value, the stockholder who does not exer-,
cise his rights to subscribe to a new stock offering suffers a
dilution of his equity.
'(2) Where the outstanding-stock is selling at a '^premium," that
is, above its equity value, the non-subscribing shareholder
not only escapes dilution, but enjoys a net overall gain on
the

transaction.

situations

comes

value)

out even.

LOUIS,

F.

Mo. —Charles

Corley has become associated with
Morfeld, Moss & Hartnett, 721
Olive Street. Mr. Corley has been
associated with C. J. Devine & Co.

.

(3) The subscriber in "discount" (market price below asset

Morfeld; Moss

(Special to The Financial Chronicle)

holders, who have been deprived of a dividend rise throughout
Ithe years; and is at the same time constructively raising needed

for 20 years.

With Minn. Sees.
(Special to The Financial

Chronicle)

ROCHESTER, Minn. —John G.
Smith has become connected with
Minnesota Securities Corp., First
Avenue

Building.

.

(4) The subscriber in "premium" (market price above asset value)
situations escapes dilution and comes out even.
(5) The shareholder who subscribes thereby protects himself in
each situation.

—

constitutes

remain

as

the group
reoffer at

-

world, goes far

mant in their ideas

case)

offering is to reduce the book value by $4.50 to $145.50 per
(1/llth of the $50 differential), or $45 on his 10 shares.
But on the new shares which he purchases for $100 he has a gain

■

future

securities

debt

new

Co. received three bids for its

ium,"
;

be

in

Keeping Heat On

Major insurance companies, still
the largest potential outlets for

million

shares

specifically, patterned
to induce more creation of
equity or risk capital.
This can be done by (a)
lowering the 52% corporate
income tax rate and thus
relieving pressures on
prices and on profit plow-baek; (b) moving further
to relieve double taxation of dividends; and. most
pressing of all, (c) flattening the steep personal in¬
come tax
progression which wipes out opportunity
for unincorporated business either to enlist
wealthy
partners or to grow by plow-back of taxable profits.
"All of these actions can spur the
savings flow

they

opened yesterday.

Michigan Wisconsin Pipe Line
$25
of 20-year bonds yester¬
day,
all
prescribing, a
4%%
coupon rate.
»
[ ■

Stockholder Who Subscribes

last

under the assumption of

reduced

need

firmer

after

prospective corporate borrower to
get its hackles up on the other
side of the picture.

equity of the old shares accrues to the value of his

(4)

'Save by exploitation of loopholes and
palliative
devices, the economy cannot grow without income

reforms

had been

"fair

shares.

new

in

"Tax

of

shortly

Borrower Bristles,

of the

and skilled individual.

phase

met a real reception with

closing

lion undertaking
period of weeks have :still lagging.

Observations.

by government in

tax rate reforms. The
present steep progression, as
personal income levels rise, will progressively suf¬
focate the economy as a whole just as it
already is
suffocating opportunities for the singularly gifted

current'

books

holding

III
■

the

money,

With

of indus¬
Thus organized labor, which
has attained its present position
of power with aid and encourage¬

v

Priced for public offering to
yield 4% to the buyer, this issue
the first to carry a 4%% rate in

mosf °f the new offerings brought
out over

rise in the productivity

'social

of the

however, at 101.516
was only
54 cents a bond under
the winning tender.

Continued from page 5

achieved,

its

The bid

101.217.

The fact of the ^matter is that

partner in Bollinger, Harris

.was a

prices exerted by the constant
demands of powerful labor unions
for wage increases exceeding the

fulfill

low

a

runner-up,

Smith, Hague, Noble & Co., Penob- since and have improved only a the original price dipping to a low
of 99 % on the bid side
scot Building, members of theV bare traction.
1
'
New York and Detroit Stock
w ■
;.£*■
Vuj* ii' Meantime the reciently 'offered
changes, Mr. Bollinger in the past
Illinois Power Co. 3%s, a $20 mil¬

on

to

to

decideri

ag/eemen't

its

bonds,

brought

DETROIT, Mich.—Paul T. Bollinger has become associated with

initial

their

Reflecting the gradual' harden¬
ing which has been ,eyident in
basic money rates, Jersey Central
Power & Light Co.'s $10 million of
new 30-year first mortgage bonds
came to market carrying a 4%%
coupon rate this week.
The company drew a total of
five bids all of them fixiiig the
foregoing rate> and ranging from
the winning terider of 101.57 dowii

an

odds

on

nected

it aggravates the upward pressure

the endeavor

or

the aim of contin-

'full employment' is

ment furnished

the steady
for Treasury

issues underwriters probably will
be

Deficit financing offers

the easy way

new

blank.

a

C°"

Smith, Hague, Noble

is in¬
"social

various

ally

equip-

W.

en¬

pressure

services"

the

sma11 piss"er °f Delaware,
&
Western

trust
certificates,
next
issue calendar is liter-

ment

week's

(Special to The Fwancial Chronicle) "

CLEVELAND,

requirement

by

...

a
smattering of
nominal sized equity offerings
which could reach market, along

a

With Gottron, Russell

,

tensified

.

lirst 5
considering
Buildl"Sj^rnembers downdrift in prices

Stock Exchanges.

governments
can

■

..

A

As.lde, fr.om

Lackawanna

-

_

&

try.

"Survey" declares.

liecting Sound Money Discipline
;ard

all

_

(Special to The Financial Chronicle*

!

['More specifically, uncorttroll-

in

.lChron,clb)

Deficit Financing Habit

lay.

|s,

which

monetary authorities

-

inot

to

less ur¬
nations to

or

O Bnen, Jr. has been added to the

•

more so. What is certain is
the
'social*
responsibility

it

banks

desiring to work shall always be
able to find jobs at 'fair' wages. The
only instruments of major impor¬

many

World

calculated

^CINCINNATI, Ohio—Harry C.

expected to maintain economic

tance

since

been

unnecessary,

..

wide

responsibility

|batable, and whether
|en

a

of
safeguards
properly
lie
the field of social rather

lese

central

indemnify- are.inflationary,"'

or

individuals

Inge

and

conditions; in

and

the

W. E Hutton Adds

Against

are

as

gently necessary, for
put
their
financial
houses

anchorless

Governments

(e sweeping changes

has

it

the

accepted

-

concept of 'managed' currency.

demption

the

'cooperation'
II

make

valuation

because

well

as

from

few rather substantially* '

a

Paying- the Going Rate

on

order."

time-

or

seen

back

prices,

It is probably fair
most of "the interna¬

that

say

War

taken when the people of the
world rejected the discipline of

isted rules of financial responsi-

lility

the

be

can

international

was

sound

settled

Of

vi "The strange combination
of
'social responsibility' and financial

tional

found to

security

of

one

instruments

-inflation.■>■%::-"-

to

'social justice'."

>

potent

national scale.

prerequisite principle of financial
responsibility. Full employment and other social service pressures, inducing anchorless currencies
instead of deflation,
are

most

irresponsibility

ducted in contravention to the

uncontrollable budgets, excessive tax burdens,

the

the

| governmental pursuit of "social* responsibility" being

35

(511)

'.4V<

it

Mid Continent Sees.
(Special to The Financial

Adds

Chronicle)

*

.

Allen
added to the staff of

ST. LOUIS, Mo.—Jack F.

.

(6) Where, as typically with ATT, the old dividend is continued
on
the new capitalization, the subscribing shareholder gains
the boon of an increased dividend yield on his equity.
t
't

f-

has

been

Securities Corpo¬
Hampton Avenue.

Mid-Continent
.

ration,

3520

August 2, 1956

The Commercial and Financial Chronicle... Thursday,
Z6

I

(512)

Now With Boren &

Calif.—Mel-

BEVERLY HILLS,

vard.

Inflationary Aspects of Steel Settlement

BEACH, Calif.—Paul E.
has

the staff of
40 Atlantic

joined

Investors,

California

of

tons

The

appointment of Hy Pearl
of the new Board
of Provincial American Se¬

clared.

-

New
City, has been announced.

York

Securities
/

National Dividend.Series is a

In

bal¬

the primary

high current

of relatively

cause

yield possibilities in relation to

and

may

tained from your
dealer or;

^National Securities &
^Research

in

i

i

,

sight for national income,

and

plant

construction,

ment,
,i

production and gross national product, we
to modify the view we expressed in our Forecast
that 1956 in many respects will be the best year

spending, industrial

Incorporated

see

investors

I

reason

no

last December
;

earnings and dividends
establishingfdl-time highs." '

in iOiir. economic history Witty combined
corporations

of

"%

mumal

A.

portfol'O

p098ible

.

/.

^

Governmentr bonds

The Year To Date

iSrm GROWTH of

the

On

'

and income^

capital

*"

over-all

the

surface

pattern

American Shares

firrt

smooth

icome

Lai

Fund

Industrial output was more

of 1955.

fund

Stock prices were

asla B

earnings

obtainable wm
i„e

risk Of

about

were

pr.nc.paE

little

a

on

available

from,

fund

is

your

investment

ago

year

Berkeley Street

ventories

Business

Boston, Mass.

were

industry

recessive,

was

loans

The

Federal

balance

rose

the first half of 1955.

In¬

a

short,

be

of

which

clouded by the steel

inventory correction,

third quarter,

have

there

been

in

several

In

Net assets

a

in early July, the near-term

in

recent

years

individual items.
is

cance

some

,

the fact

managed
"when

Probably of
most of

basis.

the world; is today

The

Inc.,

y

//■;,

,L

will

rectified
firm

.

in

'

<

»

*

i.T




'

}

r~

is

a

of

A

few

63 Wall

dealer

,

Group, Incorporated

Street, New York 5, N. Y.

expansion plans; and
the

substantial

common

road

program.

representation

we

have ahead

Under
in

stood

these

diversified,

stocks, seem? sound r investment policy.

a

rapid

good

Fund

all

in

investment

1950,

inception

this

corre¬

INCOME:

j

objectives of
iSeries B-l

RESERVES.

gains

capital
the

to a computed net asset
$100.60 per share, which
402.40% of the initial offering

price of $25

per

1950.

share in April,
•
y';/;
,

As indicated in a

previous state¬

ment, issued on July 13, 1956, the

originally authorized stock of de
Vegh Mutual Fund, Inc. has all
been issued, and no stock is avail¬
able for new subscriptions.
An Over - the - Counter market

surprisingly

conditions,

the

with

.-

the

Adjusted for the

$62.77.
of

is

or

have

share net asset
Mutual Fund,

per

Vegh

V

iSeries B-2, B-3,';

B-4, K 1, S~ 1, iS-2

value of

be

Businessmen

de

Custodian funds*

on

sponds

'•

income, has turned the corner

weeks.

was

the

from

of

a

good part of the inventory picture could)

possible farm

so.

their

on

Address

■

do

celeration
tinued

It

us.

soon

of

on June 30, 1955.
close of business

distributions

expands

v

26,

the

reinvestment

signifi¬

operating on

usually

supply

money

T:

•

than coincidental

more

of

value

in

on

$9,595,804.73
July

decline in business activity in

the over-all price level has remained rela-

that

currency

needed."

•behind

i

Distributors

request

compared to $12,-

March 30, 1956 and

As

Meanwhile, much cf the readjustment in the auto business is

'

on

from your investment

June 30, 1956 were

as

The outcome is likely to

strike.

and perhaps rather general increase

new

on

484,670.22

timely stable at approximate historic highs, despite cross-currents

Nnrn«»

a prospectus

the reinvestment of
gains distribution paid
April, 1956, the net asset value

$13,093,280.33

-

rates, and higher prices for steel and many other products.

wage

Established 1894

quality.

share of the Fund during the
1956
increased by 2.25%; during the 12
months
period ended June 30,
1956, it increased 15%.

So far in this one the economy has maintained

this report is being written

some

the

ONE WALL STREET, NEW YORK 5

ment

three months ended June 30,

,

remarkably stable equilibrium.

outlook is

BULLOCK

stocks

selected for their invest¬

the capital

have been passing through another one of the

we

readjustment,"

postwar years.

As

CALVIN

growth

common

per

the

ad to

through

investing

and

income

Assuming

1957; but the

end, with increased spending ahead for roads, defense

an

In

Canada. For free prospectus mail this

for

1956.

in

"rolling

pro¬

Incorporated 1933

$7.20 .
April

capital gains amounting to
per share had been paid in

in

ended June 30 was

year

balanced in fiscal

and the farm soil bank program.

incorporated mutual fimd

FUND

&roup Securities, Inc.

share on June 30, 1956 was
$60.13. This compared with $66.10
on March 31, 1956, and $58.80 on
June 30, 1955.
A distribution from net realized

despite somewhat tighter credit conditions.

budget for the fiscal

Ycgli

per

Ex¬

be at

viding diversified, managed investment in

ex¬

util-

Fund, I^c..
announced that its net asset value

sharp decline in Federal spending in the last few years appears to

—A U. S.

was

de Veeb Mutual

Exports and imports continued to rise.

is expected to be

and

dividends

or

Counter Market

as

of the big new Federal road program.

increased.

were

A mutual fund

roads and other public projects continued upward,

on

appeared to be attractive
income and long-term'

at what

Fund Traded in

of the nation's activities were moving upward

before passage

even

Dividend

of

levels for

and farm income was again

over

'VL; \ V

moder¬

A few telephone and

Auto and truck output was

equipment

plant and Equipment nearly 30%
penditures

were

Stock of tie

Businessmen increased their expenditures on new

dynamically.

dealer.

The Parker Corporation
200

a

farm

The

Other phases

each

prospectus

lower.

below

assets

net

Total

STOCK
economically

the textile business and television set manufacturing.

were

A

17%

pected.

New residential buildings started

down 23% from 1955's first half.

-

Shares, Inc., a mutual fund man¬
aged by "Calvin Bullock, stood at
$214,127,000 on June 30, 1956, ac¬
cording to the quarterly report to
stockholders
accompanying
the
96th consecutive dividend, payable

again higher.

But underneath this smooth surface there was an

without

•

stocks'where

than 5% above the first half

exciting turmoil of conflicting trends.
i

£ I f y *\'j

">'•.

building, oil, and rubber
an improvement in

made in

at

product moved slowly upward, as did personal income and expen¬
diture.

.<

In Stock Value

corporate

;Comfnon stock purchases

high levels, Selected
reports. Employment rose, value of* the national
activity

C*

ately reduced.

1956 presented a

&al£ of

economic

of

-

During the latter
bonds and preferred; 7% in Gov¬ appreciation.
stages of the decline, the manage-*'
ernment bonds and cash and 1%
ment invested about $5,000,000 in
in
appreciation-type bonds and
additional common stocks.
Divi-'
preferreds.
dend Shares invests primarily in
Mr. Morgan pointed out that
dividend-paying common, stocks
during the first six months, Well¬ of
"blue-chip" duality.
-. i'
ington Fund took advantage of the
Purchases d u r i n g the three
rise in interest rates to increase
months ended June 30, 1956 • in- >
its
backlog of good grade pre¬
eluded, - among others, 4,000 shares
ferred stocks and bonds. Most of
of Beneficial Finance, 5,000 shares
the
corporate
bonds were new of Chase Manhattan Bank, 4,90O»
issues
acquired at the highest C.I.T. financial,'16,400 Goodyear;
yields available for investment Tire & Rubber, 7,900 Illinois Cen¬
grade issues in more than 20 years. tral Railroad, 5,000 Inland Steel,f
Three issues of quality Converti¬
ble bonds
were
also purchased.

level of activity for the balance of

records

he said.

22,000 new sharehold¬

in high grade

invested

the year. With new
personal income, employ¬
equipment outlays, consumer-

average

J

'v:\

Reports $2.86 Gain

Of the remainder 26% was

stocks.

agriculture and the auto industry, are starting to
business can look forward with confidence to a high

look better,
5, New York

Broadway, New York

expect no material change
and the end of the year," it said.

spots,' notably

Established 1930

120

:•

world, and ranks the fund share value rose from $2.71 to
'
the 10 largest corporations $2.86, or approximately 5.5%.
The May market decline
in
the country in numbers
of
viewed by the fund'® u«..ia6vshareholders.
ment as an opportunity to use part
Wellington Fund currently has
of its cash reserves to buy stocks
66% of its resources in common

that a long-term settle¬
the steel industry and some of the 'soft

in

ment has been achieved

Corporation

\

Dividend Slis. Inc.

among

the study said: "Now

In conclusion,

as

the

tight and we

continues

"Credit

in credit conditions between now

in these stocks

were
they be¬

who joined the fund this year
brings the total number of share¬ Aug. 1, 1956. This was a gain of
as
compared
with*
holders
to
over
183,000 which $23,571,000
June
30,
1955. During the six'
places Wellington shares among
the most widely held securities in months ended June 30, 1956, pert

to its 1956 Forecast, National Securities &
"While the drop in the year's automobile

said

on

ers

production."

be ob¬
investment

information

other

June 30,

A record

production will exceed the decline projected last December, ex¬
penditures for plant and equipment are now estimated at over
$35 billion, almost $7 billion more than the preceding year's
record outlays and considerably above our earlier estimate for a
new record this year. This alone more than offsets the drop in auto

objective of which is

to provide an investment in a di¬
versified group of bonds, preferred
and common stodks selected be¬

.the risk involved. Prospectus

Corp.

$13.31

distribution
on

follow-up

a

Research

from

the

This

purchases

per

Fund in¬
Dec. 31,

(adjusted for the 100% stock
in April), to $13.75

last

assets

inflationary pressures that have already
lifted the Consumer Price Index to a new peak and point to a
further rise in the months ahead, it was stated.

mutual investment fund,

anced

creased

This will add to the

INCOME?

value

Asset

on

sales.

car

more

i

a larger amount
previous six months

shareholders.

of the National
in excess of

managers

with

Series

any

share of the Wellington

$290,000,000.

FOR

INVESTING

Research, sponsors and
of mutual funds

&

Securities

a

they advanced

record

re¬

was

attractively priced on
long term basis,
* - N'

came

period in the fund's history, Wal¬
ter L. Morgan, President, stated
in
his
semi-annual
report
to

contract, with
automatic increases from year to year, is sure to be followed by
an advance in steel prices and should accelerate the trend toward
periodic wage increases in other industries," according to National

curities, Inc., 176 Broadway,

in

than

called for by the three-year

"The wage hike

made

$559,000,000

record

a

stocks

auto

in¬

fund's

the

year,

selected

spring,

shareholders,

new

added.

prior to the year end, it

made up

Manager

Room

depleted
8,000,000
output, National Securities & Research Corporation, de¬
It is believed that production lost by the strike will be

production to near capacity rates to replenish
steel inventories and to make up for the loss of about

Appoints

Pro v. American

strike will result in the

Settlement of the 27-day steel

to

612,000

assets

during the six months ended June
30, 1956, with a total $53,000,000
invested in Wellington by old and

eration of

Boulevard.

as

of

news

Joins Calif. Investors
Malmuth

in

duced when

of Wellington
Fund have increased from $496,Total net

LONG

last

Late

Soar

■

_

.also increased i
yields were satisfactory, w1
reported.
,/c >

stocks .were

vestment

Monica Boule¬

9640 Santa

& Co.,

.

where

Mr. Morgan

Shareholders and:

with Boren

vin A. Lewison is now

ity

Wellington Fund's

Co.

ac¬
con¬

has developed in

quality

the stock of the

Fund, in which the stock
.

is cur¬

rently selling at a premium.

,.

GROWTH:

iSeries K-2,<S-3,iS~4

The Keystone
50 Congress

Please send
your
ten

Company

* ^

Street, Boston 9, Mass.
me

prospectuses

describing

Organization and die siiares of your

Funds.

•

-

.

*

•;

n-168 \

Name...

n

Address

Oty

-

State....,

*

ij

■t '«ti ;d' i'-x :nr

u-

Volume 184
■'

■'*

'■'*

v,

't"*'

*'•

■»

Number 5556 ...The Commercial and Financial Chronicle

^r

V1 lv,

1 i" •

.)

}'

\r*'•

*■ /

^ \r;

1

,

'■ .Ci'i

'

•'

r * V."1

-

.

'' V', I

't

•''vF

•,'tf .•<••»

V>

i

V

"t

""

-'

*r' ^

-l

'J ' '

r.
.

Johnson & Johnson/ 6,500
Copper, 5,000 Northern
Gas, 16,800 Ohio Edison,
16,600 Ohio Oil, 5,800 Parke-Davis,
10,500 Phelps Dodge, 10,000 Publie Service of Indiana, 10,000 Publie Service Electric. & Gas, 17,000.
Republic Steelr 10,000 Union Electrie, 10,000 United Gas, and 5,000
Westinghouse Electric.

»•

,'S

.*

^

,'^y

1

(513)

; 1

2,200

end* pf„ 1955

while utilities

Kennecott

increased

8.8%" of

Natural

The percentage of investments in
the aircraft, chemical, metals and
mining, and oil groups was also
increased,

Incorporated's
^

V...

t

""-J-"

l'r' v''v

*'V*5?5 '*"-*•

to

net

were

traffic. Another basic factor is the

assets.

road's

from the Erie last year of the 34mile double track Jefferson divi¬

I ll VPSloi*® GlVUm

111V^lU1® IxI UUp
Canadian Fund

Assets Increased

Total

Group

net;

assets

Canadian

Fund

sion, this probably does not enter

Delaware & Hudson Company
If

a.

poll had been taken

cently
the

Investors

of

Ltd.,

mu-

tual
fund
affiliate -managed
managed
bv
by
Investors Diversified Services,
Inc.,

stocks least

Saffi

re-

owned

from

Napirville
Rouse's

Junction

Point

^ Canadian Pacific.
the

°elaWare

&

rrl-.S

At
^

R.R.

ment.

A final factor is

sman

nasseneer

H

&

inter-

chanSe with the Erie that has

net

assets

122nd

over

a

quarterly

holders

shows

$258,250,115,

year

ssi««nse>
June 30, 1956, Joseph M. Fitzsim-

net

Its

ago.

report

to

assets

stock-

ssa.xrs.liissss atfsaRNMMSKS
Mechanicville
connects

totaling

President

by

This figure represents

represented

26,-

trusted ^thCtotal^lfit^s^et^nf
rinweented
fldQQR? shares (allowing fL rerp"
849,985
for
<:99RiR9 nsn

cent

2

for

stock

a

year

split)

ago.

Value per share: rose
after., adjusting

Capital

first

wasma^e
I
the

stocks

President

except,

i

a

William

r m a n

A.

Parker

June

1955

and

on

lack
the

imDb?ed

of

Com

bv

Group

'

the ;President
'

.

n

more.

the D & H

with

the

this

of

Boston

&

Maine,

its

low

cost

to

annears

PP

total

ratios.

have

come

me

a?

am — — °<
thief
On
vpar

ann,,oi

an

but

once

very important interhas become less so as a
nas
become less
so
as
a

change
cnange

<fi2

at

at

million

^

and

million

respectively.

ments of both coals together have
declined about 50% in the bast 10
ueoimeu auuui ou/c, n ine pay
years hi "the'ease^of'^the" d"&
H

ift" 'a

greater
greater

^

The

present

shares

selling

are

proportionate
b.

coal.*'In

decline in soft

not far T-om*the 1^50 l^w of29% D~ & H hauled about haif
ffor the old stock which appraised soft coal as anthracite.
it at less than three times 1950-51

earnings.

At

equivalent
stock, the
creased

outstanding to-

Sdt^ WtS&JS?^

.

to

this
93%

year's
for

appraisal*

to

over

the

old

factor had in-

six

Much

times

1955

of

the

the

1955

Ts" much

decline

in

roal

ha^^Tev^rtMeS^been^ off^

high,

taled: 13,804,122

ZZXS

nota^ly^nTw^
other

on
June 30, as learnings
of $13.12 on the_ oid -'ore
10,211,428 at the close of stock. This "new look" at Delavanced by 4%.
This-price rise 1955. Number Of shareholders in-: wareHudson stock
^ mucb as
occurred in spite of credit and fis-« creased over the
period to 34,000 the sharp increase in- 1955' earncal. policies -that were generally
compared with 30,000 on Dec. 31 ings is thought to have led to the
regarded as' timely and anti-in- .last year.
S-for-i spiit voted iast IVIay.
; and
flationary*.
»Bureau of;Labor
Net investment income for the
Statistics' recently reported
thutv 1056 fi^V hk'lf amoThtertoT647
I the Consumer Price Index/ rose

1956 the wholesale price level ad-

Because
the D & H

sr.s.-« .-rssa

the

earnings were increasing
+
®
an(j particularly In the past year
a

pared with $5.06 at the year-end.

June

the drag

earnings

Number of shares

^'Between

its

_

Fund
Fund

Net asset value per share increased in the first half of 1956
to $5.64 (U. S. currency) com-

state:

Jet

as

Canad an
Canadian

?

and

off

Ato™ f9$ andto °f -the stoC-k' refle5ted
higte
h 14 months, time
of M55'P"ce-earmngs ratio_atthe same

n"
period

firoun

watGS'

fn*at f
for necessary

Charles;!<Devens.

to

f*r0wth and

fa°Js

of 56? Ltd. has grown to be the largest or
10,: 195.6. Canadian "fund distributed in The '

workmg capital and reserves, its
C h

on

hHrf
brief

Investors
Investors

a

reported.
six month

a

gains; distribution

cents per share paid Feb.

mon

for

fund,

the ODeratin£? efficiencv of the rail

subsMiarv

of

last year.

*91/

and
At

mifn™

$2y2
any

million,
rate,
the

Hudson Coal Co. But what was by natural gas so largely in the
was up wyo ior
less ukely to have" been foreseen New England territory /and the ?he first five months this year, an
has been the improvement in the consequent decline in coal shin- increase of $1,069,000 despite a
31, 1955. The market
appraisal of the character ments over this route both an- $M70,000 increase in Federal tax

the

on

Net asset
from $9.10

to$10.42

the

of

considerable

a

3 V?%

,of $24>674,457 over the
ne+$51,639,803
at the close of the funds
fiscal year, Dec.

94

1

date

same

Chairman of the Board and

mons,

then

the road'?

"business" wh£h

onlv

led

=r1saa,iasa;

even

represented
revenues

.;

Binghamton the D
Bl
the veiT
the
important

At

Puds?n_ c?mPai?y, .sto<* ZZZZ has
•snLUt^c. would n,as

into the question since the D & H
had been operating over this line
since 1898 under
trackage agree-

Delson

to

likely to be split Junction, Que., where it connects

th3t

gUCSS

S

as

five years ago to name

as

V

although

«7« su. 7RO

relatively small proportion

of branch mileage. While the lat¬
ter was increased by the
purchase

By GERALD D. McKEEVER

Net Assets Rise

'

37

r'.

?nd bulb^ahd' fr^

naoer

from

against

of

Adircmda!^.

the

everything

;to

,

the

this pomt that
Fedaral iax bill was reduced
Kxr
in 1955 by the amount of $1,502,?.65 due to accelerated amortize^on:
deferral amounted
to about !7% of repc^ed net, and
while this years deferral may not
low

+

<bi

cno

be greatly different, its proportion should be;|ess due to the exPected increase of

$1 million

over

in net income. The latter would
earnings to $5

as

adjUSte<J f°r

In

however

flrtTthp

gjj traffic^felatlve

hould be noted

the

trL

^Wm pafife 5

lUU-

to

economy-eenerallv.

sugg|^d^ln ^ forego^ng' Whereas the road s revenue- did
to fiwr ? if-"® & Hudson Company is a .not compare^ tpp» badly; With ;that
^tstand hold+ing ofcompany, are the 100% Class I total as.
the principal/of either its district of..Of. the
outstana-; assets
which

M

^T_l

il l.

_

■

,V

;

-

between

new

high

hiPh

^ite
Ron

-

Pctnhli<;heH

Emnlovment

June

in

of

set

lower

residential

8%

rose

ISSv-^figure

set

month of

new

a

nil-time

high for the month of June

Sough ^litomobile

de-

construe-

from the

to

a

million

66 5

sales

Even

in

June

off, total retail sales climbed
$16,363,000,000, an i historical
ligh.
.

.

,

•

z.

"These facts tend to confirm the

conviction of Incorporated Inves¬

managament

ts

•

i

the

that

-

long,

,

,

m price
erm^price levelwith
level is more apt to be
is more apt to be

than down, with

ip

a
a

iecrease in

consequent

consequ^

recently

1951,
end ownership of both the Delaware it has since slipped considerably.
of 1955*
'*
' & I Hudson R.R. Corp. and the Based on the 1947-49 average as
Diversification of investments Hudson Coal Co. The latter has .100, the 1955 revenue index of the
by, industjy groups at market long been one- of the principal© & H wds 97 as compared with
value as of June 30, 1956, ^ere asi anthracite ^oat^prbduci6r$ of the ;lft6, for the Great Lakes^^ District
follows: PC^oleum an^ .natural nation, but it has naturally been and 113 for Class I.' Also, it has
gas 23-02%' base metals 20.45%; a victim of the woes of. the in- been stated quite authoritatively
Public utilities 13.95%; pulp, pa- dustry, and in recent years it be- that growth is not in evidence.
.

dna_.r%P
Sme burden cf this fow^er- /
an ?cute p/obtLem'
Investments
the
"problem

9.35%.

common

in

stocks

represented

portfolio;

convertible

of the

preferred

stocks and bonds

1.18%;-Canadian
Treasury bills and cash 6.17%.
The stated policy of the fund
provjdes that all net investment

position

that

In

a

fully in-

stock,
way to seek
lossible protection against inflation and participation in the longterm growth of the economy." - ...

the

is

was

lightened considerably

last year at the same time

as

the

earnings of the Railroad Corporation
were
mounting. Despite a
further drop in sales, the net loss
of Hudson Coal Co,

common

wisest

^

Coast Fund

Atomic Flltirl

-

i

-

T

Goal

son

funded

p

Ts

by

a

was

retired

and

re-

$6,000,000 bank loan

HuXnneCombpyany lsDtfPXeiPfl

_/->«•

.

337'73n FurY

$2,078,337 to $729,730. Fur-

thermore, the balance of the Hud"

■

CLoftn

JACVt^clls Oilctl

nnrf

^!,tS

J?1'^

Net

investment
income
and tS ve
realized
capital gains increased
nevea
lieved
toe
me,
parent
company
of
company Pi
sharply in the fiscal year ended
r June 30, Atomic
w
n
ahaving to come to the rescue to
on
Development
nnproil(5 linking fund remeet the onerous sinking fund reMutual
Fund's
annual
report
quirements
of
the
bond
issue.
shows,
r

I Cites Cut in

paren^f

.

Equity Holdings
The

half

first

>eriod

of

continued

of

"he" Investment

1956

.

ll

was

Investment

a

for
Company of
growth

-esid^nt said^nThe^emLannual

income

for the fis-

cal year totaled 36 cents per share

compared

as

18^

to

cents

per

Although it will continue to be
important source of traffic for
some further time, the main asset
value
of
the
Coal
Company is
an

of^5% ^ife dividend1 rate Probably its Part in minimizing
t^han four Ws ^at the Federal tax liability of Delai^r^re^chedintotai netasslts it was^durirfg th^ Fund's first ^ear ware & Hudson Company. As a
ket a^ets
share
shares out- of deration (1954)
s first yea result of consolidated 1 o s s e s
fending and the number >of'" Realized net caDital gains on neither the Parent company nor
Relnzed^net capital gains
Itandmg,
and
the
number
01
the

lenor^o

shareholders

New hdghs

crease

k

now

more

Der

on

lareholders.

/

Total net assets at June 30,

!>

sale

of securities amounted

with

cents

icurities valued at quoted market

cents

►rices

that

on

date,

were

$90,-

as compared with $76,456,Dec. 1, 1955. This amounted
per share for the 9,134,512
jmmon
shares
outstanding
on
on

$9.92

[une 30

as

|er

common
lonths ago.

compared with $9.42
share outstanding six
There

were

32,701

lareholders at June 30 compared
nth

28,461

Dec. 31.
The company had a more conirvative investment position than
IX
months
ago,
with 10.5% of
on

|et assets in cash and government
mds

as

compared with 7.2% on

per
per

26

to

share compared to 6V2
share, an increase of

300%.

[71,005
|74

recent

Net

assets

June

on

30

were

share as against $14.37
earlier. Total net assets on

per

year

June 30

$42,909,160.
In commenting on the year,
Merle Thorpe, Jr., Board Chairman

were

Newton

and

I.

Steers,

Jr.,

President of the Fund, noted that
noted that
"a fully justified shakeout of the
.

highly

'penny'

marnv
tinn

uranium

fected

a

is

minor amount in 1953.
therefore

quite

that "Delaware &
popularly regarded

^

T

lv

onpral

pffiripnt

1 Qm

the
the
nr;_

Lpam<»

lin/is

a

fniiv
nhnnt

a

tmues to expand and prosper, then
the partners who combine to own
it, will also prosper.
\ rT

These partners come from

every
doctors, lawyers,
dentists, engineers, railroad workers> machinists, farmers, housewives, laborers, etc.
Again thebroker is called upon by his individual or corporate clients to

walk of llfe

—

interpret their investments.

Periodically meetings should be

operated under

cIined from the average of 18.8 «al analysts, underwriting firms,
m|les Der hour in 1954 to 179 last etc., over the luncheon our largest
tables am*
at cocktail parties, in
heavier loadings and longer

year>

J^aJ£s Measure of*grosTton-miles
Per frei®ht train haur to the new
hiSh of 63,857 for

1955.

Reflect-

tog

this. the transportation ratio

was

reduced to 34%,

a new low

for

«ve years, and in spite of higher
costs

this

"Ub

showed

oqq^T

this

year

the

further

cost

ratio
lcUi"

decline

cities

this year. This ratio was
for the corresponding 1955 period.
Highly mechanized road maintenance, together^ with the further

from

coast

to

coast

and
-

more

-

active market for their
_..

securities This program should
be care'u"y. ;Plam^vand;

tematized before vist.ng each city,
,

Crystal Clear

It is crystal clear that these
j

scjenHfic development so
constantiy creative, that we look:
upon it as a habit.
New frontiers
are
appearing on the horizons
constantly foremen of vision and
perception, and more so than ever*
for brokers with imagination,
initiative and ability, because we

maintenance of way ratio. A simi-

are

lar

reduction

was

effected

in

the

equipment maintenance ratio with
apparent

deferral

of

mainte-

a government of free men, a
majestic and rich soil land of

precious

commerce

and

a

materials, of
manufacture, and

gigantie

since; at thei 1955 year-end beehivesof unmatched production

is

^in^hnth SnH

in& repairs. The reduction in both
cases is ascribed
to improved

Thi SWr i
^aanP

kind.... The

maintenance procedures, although this^Sreat industrial

connecting roads about 50% of its
total tonnage and originating less
than
30%,
most
of
which
is
anthracite coal. The line of the

°I 1»100 over-age units, or some

whole .'..to

16% of the total fleet.

nation prosper

another factor in the case of function together as
freight cars was the retirement that .extent, shall

P

_

"

that extent
..

*

*
will

n.
,

t

our*

.to that extent w&

the same token to tnat extent wiii

adversely af-

Wilkes-Barre, Pa., and Bingham-. ability of the road to operate so

the dust be shaken off from good

re-,

v e s t m
shadowed significant

the

the year.

—

.

business^ ™a" a^e. "sepa ab

subsidiary,
a
"bridge" line,
receiving from and delivering to

rail

the

,,

the

in
.

.

.

h

11

heamDiyCOmpensated.
,

tn

news

— —

during
.

-

aoo tmecuamcvme..-us.mrc »cA-,iw»u«.»u6 .»u<?u1.

tended into Canada by the

100%

"""""

'•

nal expense on some 50% of its

pnnuuh

By

that pvfpnt will

the

-

are

times of sPeed and the spectacu-

fee. 31. Holdings of industrial and i n

^asportation stocks were

:ed ta 75.0% from 80.6%. at


tell

ment

installation of CTC on 19 miles of
road last year, permitting the
abandonment of second track,
contributed to a sharp drop in the

no

as a railroad
situation, its fortunes being so
largely determined by the course

of its 792-mile
This is largely

to

company's story to the invest¬
fraternity, creating a better

a

of

rT-7^
34.7%

rf+in

natural nanee,

Hudson"

•

f itg

of

show

iqpjc:

highlv
ma^

most

to

at

represents" a " "partnership in that
corporation, regardless of how
minuted If the corporation con-

future

market

over

itself"

paid

Corporation

+n

Thp

in

and
nf

income

...

Ownership of a single share of a
common stock vof a corporation

With all due credit to tne emcient operation of the D & H,^a
Delaware & Hudson extends from very important element in
the

speculative

uranium issues and

unfounded doubt

of

only
It

$14.71
a

Railroad

Federal income taxes in 1954 and

level

years

ama7jn<r

28%

dlstnbuted- Mr- Fltzsimmons sald' ''™)

its-net

satisfactory

„pli'

Investment Gams

^

maintain

income and any realized capital from $2,948,183 in 1954 to $1,893,-

was

^^

They conclude
'

child"

reduced

nvestments^
zested

Thus the ability of the D & H

to

92.65%

Investment Brokers

as

A

-

were

I.
t
to

stock

cents per snare;ot stock
in^ aSainst $391,611 at the

in

Construction outlavs

mersons

Z "of

April and May;.to equal

nii-.timp

fhp

lOrtoher '1954

ahniit them

not know enougn apoui inem.

H"1-;.,;

».

•

ii

Activity

and other figures for th€
latest week or month available.
Dates shown in first column are either for the
week or month ended on that date, my in case* or quotations, are as of that dates

Latest

Previous

Week

Ago

*17.0

-

INSTITUTE:
of capacity).

.Aug.
.Aug.

Equivalent to—

INSTITUTE:
output—daily average

AMERICAN PETROLEUM
Crude oil and condensate

gallons each)

42

Crude

(bbls.

uly 20

(bbls.)

uly 20

(bbls.)
(bbls.)
Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)
Stocks at refineries, bulk terminals, in transit, in
Finished and unfinished gasoline (bbls.) at
Gasoline output
Kerosene output

uly 20
uly 20

NEWS-RECORD:

July 26

construction

July 26

construction
Public construction
State and municipal

July 26
July 26

8.

U.

Private

?' Mountain,.

7,893,000

7,696,000
181,104,000

27,415,000

24,583,000

104,521,000

87,793.000

40,926,000

38,050,000

619,988

781,908

648,492

799,461

568,798

488,600

661,510

641,987

v

New

.

31,206,000
112,392,000

.July 26

115,533,000
40,726,000

(U. S. BUREAU OF MINES):
coal and lignite (tons)

Bituminous

DEPARTMENT STORE

SYSTEM—1947-49

-FEDERAL RESERVE

126.253,000

COTTON

14,000,000

43,905,000.

AGE

Scrap

''

Aaa

AVERAGES:

45.450c

Sales

35.925c

Sales

95.750c

95.125c

98.250c

25
25
25

97.750c

—July 31
————July 31

AVERAGES:

—__.

—

13.500c

12.500c

Baa

Group
Group.

93.03

93.56

94.82

103.97

104.48

.Percentage of activity.

106.92

107.62

108.16

106.04

106.56

Unfilled orders (tons)

at end of

103.64

104.14

98.88

99.52

102.30

103.13

106.92

103.97

104.31

104.66

105.34

105.86

109.24

WW-

,

2.93

3.05

3.01

2.90

3.51

3.48

3.26

3.54

3.30

3.27

3.42

3.39

3.36

3.16

3.56

3.53

3.50

3.24

3.83

3.82

3.78

3.54

3.64

3.61

3.56

Odd-lot

—

3.51

3.49

3.47

3.23

.3.43

3.40

3.21
402.2

3.47

229,362

249,020

202,972

281,176

'

(customers'

sales by dealers
of shares

89

528,096

108.99

108.97

•

.July 27

dealers (customers' sales)—
orders—Customers' total sales—

Number of

short sales.
Customers' other sales.

Customers'

971,034

$50,851,492

751,229

'

St

dealers—

.July

1,053,127
$54,626,039
847,667
:\v.\ 4,906 •

842,761

$39,103,645

$43,198,565

$43,655,436

253,030

1,401,818

$86,358,075

Other

ar

253,030

349,540

24~1~01G

446,680

'r

.

...

:

="

.

July

349,860

7,869,010

9,194,310

8,186,310

9,544,170

430,080

9,754,320
10,184,400

J

.

t

186,110

1,044,810
1,230,920

july

Total

sales

,

purchases

Shirt

WHOLESALE
LABOR

—

(1947-49

=

—

Processed

560,565


1, 1956,
http://fraser.stlouisfed.org/ Investment
Monthly
Federal Reserve Bank of St. Louis
as

80,650

56,500

.July 24

483,103

483,273

565,168

563,923

621,668

r.'

538,052

2,327,815
328,750

2,224,622
2,609,442

REAL

384,820

"

503

113.8

—_z,„

109.9

90.3

89.5

-•!■;.*<

STATES

i

101.2

81.9

81.2

77.5

121.3

116.3

'

?.

:

,«•

■>.

'

*$321.7

$323.0

*96.8
'

59.1

*$30

*2r2.9

/

96.8
'

*£9.1

*9
*5

30.0

*2

37.4

:

*29.8

*37.2

*3

7.2

*29.1

18.7

*)8.6

*1

307.8

L_

*4S„7

29.3

payments

♦7.2

50.3

and dividends—

income—

*5.8

5.8
'

_

a_——
income— —-

*306.8

*28

*4

*2

.

ESTATE

IN

FINANCING

NON-FARM

and

trust

$872,304
158,375
507,942

—_

$826,598

.$950.(

148,423

1G3,^

470,242

482,1

-

i.—

lending

—

128,368

152,(|

318,133

294,837

235.S

425,359

400,730

443,1

$2,434,198

Miscellaneous

1.

152.085

$2,269,248

$2,482,

^•$1,687,800

*$1,507,100

~ $1,322.

1,090,000

*990.000

958,

——

institutions^

82 2

121.4

'

223.3

—

and

r-

87.6

101.4

647,63
119,2j

—_

companies.—
Mutual savings banks
—

102.4

362

contribution for . special in-

■;

767.11

96,114

;

AREAS OF U. S. — HOME LOAN. BANK
BOARD—Month of May (000's omitted):
Savings and loan associations
—
Insurance companies
—r.—.
Bank

90.8

91,791

,r'

474,010

P

2,359,225

102.4

570,486

445,758

-J—.——————-——

nonagricultural

Total

690,192

1,915,064
278,760

114.0

$30.009,0C

VA.

v.

■,'>

:

Personal
Total transfer

610.482

114.1

23,68
42,88

-

—_—

rental
interest income

79,710

2,119,088

p
-

$30,210,000

labor income..—...—*

Individuals

.July 24

^Includes 1,095,000 barrels of foreign crude runs.
egalnst Jan. 1, 1955 basis of 125,828,319 tons.

Plan.

surance

Other

476,335

.July 24

All commodities other than farm and foods

Jan.

465,644

2,447,838

*31,051"

$30,513,000

———.

IN THE UNITED

industries

Proprietors'

.July 24

foolls

•Revised figure.

oi

46,300

.July 24

Meats

buses_
1
m

Government
Less employees'

333,190

1,749,633

89.1E

'

■■*48,108

Commodity • producing industries———_
Distributing industries
—-

.

100):

products-

of

286,890

340,100

2,028,393

*:■

29,215

44,019

•

Total personal income..———
Wage and salary, receipts, total.

U. S. DEPT. OF

commodities

Farm

16,600

323,500

250,800

Commodity Group—
All

12,000
233,550

1,656,373

.

PRICES, new SERIES

i.

3,28 T,94

*9,7,943

95,610--

145,

-

3,183,779 \"-:. *3,294,515

-

295.040

221,550

1,907,173

sales

Total sales

motor

Service

1,789,493

*!_.

sales

Other

1,486,070

account of membe

.

trucks

of

Number

1,586,060

555,373

Total sales
Total round-lot transactions for
Total

1,327,250

72,270

sales

Other

1,230,420

434,823

purchases

Short

5

,*134,591-:.

132,167

...
•

VEHICLE
IN U.

Number

258,810

245,290

the floor—

transactions initiated off

..

.

FACTORY SALES FROM
Si—AUTOMOTIVE MANU¬
ASSN.—Month of June:Total number of vehicles—"—
1—
Number of passenber cars—
:—

1,587,850

7,600

.

26;65

V

(in

12,273,110

255,650

282,700

•t

recoverable metals in the ;

MONEY IN CIRCULATION—TREASURY DEPT.
As of May 31
(000's omitted)———

521,230
11,751,880

237,690

juiy
juiy

Total sales

Other

261,490

july

sales

228,850

,

19,21
$43,541

"

*27,237

r

27;763

'

$24,30']

*20,244

578,240

1,484,550

1,220,570

170.930

the floor-

sales

Other

*$47,967

(DEPARTMENT OF COMMERCE)—Month *
of May (in billions):
1,093,180

*453,00C

*$3,608,

*$27,723

3

———-

PERSONAL INCOME

july

purchases

Short

$28,117
20,462

"

1

-

United

MOTOR

'

*531.00':

*512 000
♦847,000

*

'• -v

v

FACTURER'S

317,300

5,6001

►$2,574.00C

♦$2,829,000

"U

*$4,188,000

PLANTS

1,106,510
Total

>•;

States:
v".
,
,:
/ - ^'
fine ounces)
;
— «■
(inline ounces)..:
—
1Copper^(in short tons)..
—
Lead
(in short tons):
—_
Zinc
(in short tons)^..^——«-—•*

241,010

,

935.580

Other transactions initiated on

229,4001

19.3001
'

•

SALES

Silver

1,

1,055,283
$59,879,953

225,390

352,230

7

TRANSACTIONS FOR ACCOUNT OF MEM- BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists In stocks in which registered—
Total purchases
July
;

231,000

$4,543,000

—

(.

production of

Gold

8,584

ROUND-LOT

Short sales

137,7001

581,000

METAL OUTPUT (BUREAU OF MINES)—
iMonth Of April:

,1,063,867

.

v

■

July
July

sales

256,400

$2,948,000

1—:

Mine

225.390

192,420

192,420

.

STOCK SALES ON THE N. Y. STOCK
ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):
Total round-lot sales—'

Total sales

7,200

233,900

COMMERCE) NEW SERIES—
(millions of.dollars):'.:
7

OF

Durables

AND

Short sales

8,700

161,900

■>

Nondurables

106.75

total ROUND-LOT
EXCHANGE

;

Inventories—

■

869,987

.July

RoUnd-lot purchases by
Number of shares

58,700

6,200

-

—

(DEPT.

60,900l

65,100
11,390

Month of May

607,016

108.0,7

745,130

'

.July

sales

52,821,809

:

MANUFACTURER'S INVENTORIES AND

94

.

5,513

6,099t

July
July

.luly

flhort Bales

52,936,737

—

Total

264,622

.443,477

875,500

July

July

Round-lot sales by dealers—
Number of shares—Total sales.
Other

922,843

$49,804,582

Ju|y

Dollar value

38.233,741
$644,082,00p
51,551,416

1,014,000

Sales

July

Dollar value

.'
1

Group

COMMISSION:

Odd-lot purchases by

43,737,870
$714,161,000

'

43,097,449

PURCHASERS—INSTITUTE
— Month
of May

Industrial

*

purchases)—t

;

April 30

at

(000's omitted):

233,721
'-.v.:*

70

493,626

July 21
July 21

Number

104

INSURANCE

LIFE

OF

ODD-LOT ACCOUNT OF ODDSPECIALISTS ON N. Y. STOCK

AND

*115

$48,579

412 2
220,607

July 21

SECURITIES EXCHANGE

123

-

consumers—

customers

ultimate

of

INSURANCE

LIFE

STOCK TRANSACTIONS FOR
DEALERS

*108

126

*

:

ultimate

to

3.34

'V

EXCHANGE

101

127

■

APPLIANCE

3.09

3.34

'

LOT

103

:

108

118

MANUFACTURERS ASSOCIATION—Month of May:
,
Gas-fired furnace shipments (units)
—_
Gas conversion
burner shipments (units) —
Gas operated
boiler shipments (units)—
Domestic gas range shipments (units)—
Gas water heater shipments (units)

108.88

104.66

Number

GAS

103.47

98.73

101.80

.

413.8

PRICE INDEX—

•

■'■'•v-110 : V

108.70

226,750

period.

no

<

115

$703,854,000

110.15

103.13

July 31

OIL, PAINT AND DRUG REPORTER
1949 AVERAGE = 100

113

111

April

of

Revenue

105.52

"

416.4

1

(.tons)

443.6

v.:':,-".')

111.44

—July 21

ASSOCIATION:

NATIONAL PAPERBOARD
Orders received (tons)

10,867.000

456.4

(000's omitted)
—
from ultimate customers—month of

Month

108.34

103.47

;,

July 31

INDEX

MOODY'S COMMODITY

9,128,000

426.5

place June

INSTITUTE:

sales

Kilowatt-hour

Group

Production

Stocks,

EDISON ELECTRIC

94.07

July 31
.July 31
.July 31
.July 31

A

Utilities

13,335,000

10,664,000

128.718

156,681

14.800c

13.500c

July 31
July 31

——„—

Industrials

15.000c

15.800c

13.500c

July 31
July 31

Government Bonds

Public

16.000c

15.800c

July 31

Average corporate

Railroad

16.000c

15.800c

July 31

—

22,275,000

19,276,000

monthly), unadjusted
daily), unadjusted.daily), seasonally adjustedunadjusted '
;
:
seasonally adjusted.

Stocks,

16.000c

Ju y 31

Utilities GroupIndustrials Group

—

21,926,000

18,954,000

(average

25

36.450c

37.550c

July 31

DAILY

21,934,000

—

(average

40.450c

Public

YIELD

<16,3^5,000

(average

39.500c

35.700c

39.300c

"

July 31

BOND

1,559,712

19.276,000

SALES—SECOND FEDERAL
RESERVE
DISTRICT,
FEDERAL
RESERVE BANK OF NEW YORK—1947-49
Average = 100—Month of June:
.

25

—
—

*1,259 702

18,954,GOO

—■

STORE

DEPARTMENT

$59.09

July 31
uly 31

Aaa

5.174c

1,515,297

9,736,121

.

June 30

spindle hours per spindle in

Active

$41.50

Group

Aa

5.179c

*•

$44.83

A

U. S.

249

$60.29

——————

MOODY'S

201

223

1.42C.476
13,908,773

1,013,974

30

place on

spindles in

Spinning

'849,413

713,940

1,151,929
13,213,888
138,189

Spinning spindles, active on June 30:
i
'Active spindle hours (000's omitted) June 30

$46.50

Aa

Railroad

10,727,000

$69.61

July 25

BOND PRICES DAILY
Government Bonds
Average corporate

$78,300

OF COMMERCE):

SPINNING (DEPT.

5.179c

July
July
—July
.July
July

U. S.

i

Cotton

$60.61

at
Louis) at

MOODY'S

*$84,500

812,330

I

June

$49.50

Louis)

(St.

(East St.

Zinc

11,800
23,000

BALES:

June
30—spindles active as of June 30

Stocks

Sales

,

at—
Export refinery at.
Straits tin (New York) at_
Lead (New York) at
Lead

11,498,000

QUOTATIONS):

Electrolytic copper—
Domestic refinery

12.600

*23,900

COM¬

DEPT. OF

—

of June_

public storage as of June
Linters—Consumed month of

94

109

LINTERS

month

luly 24

(E. & M. J.

12,700
23,900

In

:

ton)

steel (per gross

$43,500

*$48,000

$48,600

5.179C

—July 24

lb.)
ton).

Pig iron (per gross

'

.1

•

.-July 24

COMPOSITE PRICES:

Finished steel (per

METAL PRICES

595,000

274

.July 26

OF COM¬
SERIES—Month of May

NEW

AND

INC

BRADSTREET,
IRON

INDUSTRIAL) — DUN

(COMMERCIAL AND

FAILURES

99,030,484

534,950,355:

consuming establishments as of June 30

In

9,434,000
429,000

10,290,000

11,125,000

11,295,000

—July 28

—

MERCE—RUNNING

COTTON

EDISON ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)

70.889,351
525,224,683

140,253,000

99

96

_July 21

50,349,355

225.944,000

261,257,000
217,352,000

;

SALES INDEX
AVERAGE = 100

$634 030,339

..

508,506,857

$366,197,000

154.671,000

•7,250,000
441,000

579,000

$596,114,034

22,545,547

,,

$85,200

$415,928,000

36,009,000

9,050,000

July 21

___•

(millions of dollars):

Consumed

July 21

——

$558,856,212

27,816,615

;i' Manufacturing

(tons)

anthracite

Pennsylvania

96,616,199

113,658.596
87,613,891
47,616,727
25,504,344
105,743.144

INVENTORIES—DEPT.

BUSINESS

Federal
COAL OUTPUT

39,352.525

City

'ji Wholesale
$391,347,000
234,279,000
157,068,000
121,059,000

90,481,087

—

States

United

MERCE

$396,896,000
240,637,000
156,259,000

144.388.823

78,678,584
39,600,359

106,671,395

i

—

York

45,260,000

,

.161,868.492
65,978,816

-i.
;

—i—
;

Qutside New York City

;

57.389,673

:

Total

1'57,678,000

$26,041,829

118,566,051

123,645,987

:

—
—

Pacific

•

$26,774,123

42,127,147

—

Central
Central

West

7.857,000

178,366,000

ASSOCIATION OF AMERICAN RAILROADS:
July 21
Revenue freight loaded (number of cars)———T*T1"T
July 21
Revenue freight received from connections (no. of cars)
ENGINEERING
CONSTRUCTION
civil engineering
Total

South

1,921,000
10,871,000

..

-109,094,000
42,164,000

-JJ J
>u y 0

(bbls.) at
(bbls.) at

Distillate fuel oil
Residual fuel oil

East

>,

25,964.000

-A^o

$33,536,576
106,779,549

•

;

.;

:

Central

'?

7.620,000

W:

Atlantic

South

6.650,250

7,055.850
8,087,000
27,263,000
1,954,000
i'S 12,487,000

7.083,900
8,028,000

27,196,000
2,265,000
12,606,GOO

7,868,000

"}J

-

England —————
Middle Atlantic •
—.

178,352,000
28,369,000

uly 20

pipe lines—

(bbls.)

Kerosene

of June:

2,098,000

New

7,110,850
118,076,000
26,954,000
2,063,000
12*760,000

uly 20

Monxh

INC.—215

BRADSTREET,

V 302,000

Year

Previous

VALUATION — DUN &
CITIES—Month
"

PERMIT

BUILDING

86.9

12.3

;

*419,000

§431,000

of

r

stills—daily average

to

runs

5

.517.3

„

,

Ago

tons)

castings (net

Steel ingots and

5

Latest
Month

Year

Month

Week

AMERICAN IRON AND STEEL
Indicated steel operations (percent

.

;1956

statistical tabulations coyer production

The following

of Current

Business

tt'J.v;'• -V'

.■1

Financial Chronicle... Thursday, August 2,

T/ie Commercial and

121.4

Total
UNITED

STATES

OF
CENSUS
omitted):

BUREAU

§Ba8ed
tNumber

on

of

annual capacity of 128,363,000 tons as
orders not reported since introduction of

new

(000's

Exports

Imports

.EXPORTS
—

IMPORTS
Month _of
May
AND

..

|

Number 5556 ...The Commercial and Financial Chronicle

Volume 184

(515)

With Kenower, Mac Arthur

Joins F. B. Bateman

(Special tc The Financial Chronicle)

DETROIT, Mich.

'

Kenneth

—

Kenower, MacArthur & Co., Ford
Building, members of the Detroit

DETROIT,

Van

has

M.

—

James

joined the staff

Livingstone, Crouse & Co.,
Penobscot Building, members of
the Detroit Stock

Exchange. V,\

With Kalman & Co.
MINNEAPOLIS, Minn.

rd F.

Blomquist is

&

an

with

—

' :

Marcus

uilding.

will

become

Noel

ated with

York

Van

DIVIDEND

Exchange
Weekly Firm Changes

Andrew L. Tackus retires from

partnership in Putnam & Co. Aug.

Bruce L.
ecome

Mayers

a

partnership

Aug. 9 will

on

partner

in-

Reynolds

&

close of business

-

-

reenwald

ew

Equitable Building.

o.,

DIVIDEND

61

Broadway,. New

N. Y.

the

at

close

of

tember 11, 1956.
An extra dividend

dollar per share
■"•

was

I

record

s

The Directors of Berkshire
Hathaway
Inc. have declared a dividend of 25
cents
share

per

on

September
record

the

t,

quarterly

dividend
the

on

of

1956.

MALCOLM G. CHACE, JR.
1956

MANUFACTURING

'

New York 20,

seventy-five

share

for

on

the

September

transfer books will
E.

F.

1956.

6,

remain

The

cents

(75c)

per

share

shares of the

common

to

shareholders of. record

close of business

payable October 1, 1956 to holders of

record

the

of

stock

R. G.

open.

at

of

business

business

in

GREENBURGH,

NATIONAL DISTILLERS

Preferred
record

has

declared

been

Common Stock
tember

of

PRODUCTS

15,

record

August

1956,
the

at

31,

the

on

located in

DIVIDEND

close

of

DIVIDEND

NOTICE

not

business

The

Board

of

Directors

;

^

clared

WILLIAM FEICK, JR.,

a

quarterly

July 25,

Detroit 23, Michigan

Directors

of

share
1956

on

to

the board of directors of Allied

the Common

shareholders

14,.. 1956.

,

-

W

a

quarterly

$1.50

1956

record

at

the

Products Corporation,

dividend

shares of the Corporation,
of

close-of

of

37>/2C

per

payable September 28,
business

onrBeptember

v/,/'.. '■

per

.

to

ONE

CENT

PER

share

dividend* of

to

ord

the

1, 1956, to stockholders

record

on

August

10,

1956.

at

CORPORATION

shareholders

of

record

close

DAVID S.

July 27, 1956.

Also
per

declared

share

payable

on

DIVIDEND of 70c

September 1, 1956 to

shareholders of

record

share and

August

of
a

share

able

Secretary

extra

an

dividend

Twenty five
on

cents ($0.25)
common stock
pay-

August

1956,

16,

stockholders of record

to

August

V

.

'

quarterly dividend of
fifty cents (50#) per share on. the
Capital Stock of the Company has
been declared this day, payable
on September 10, 1956, to stock¬
holders of record
business

on

at

the close of

August 10, 1956.
re¬

main open.

S. T. Crossland

■

Vice President & Treasurer

July 27, 1956;

METALS,
BARRETT

•

NITROGEN

*

YALE &TOWNE
Declares 274th Dividend

COMPANY

GENERAL CHEMICAL

MUTUAL CHEMICAL
•

37Vi$

Reynolds Metals Building
Richmond 19, Virginia

NATIONAL ANILINE

-

SEMET-SOLVAY

PREFERRED

SOLVAY PROCESS

On

DIVIDEND

Quarterly dividend No.
142 of $.75 per share has
been declared
mon

Stock

the Com¬

on

of

Allied

tion, payable

Corpora¬

43/4% Series A, has been declared
the quarter ending October 31,
1956, payable November 1, 1956,

10, 1956, to stockholders
of record at

business

204TH COMMON DIVIDEND

share has been declared

Company,

1956, to stockholders of record

close of business August' 10, 1956. Checks will be mailed.

at

the

close

of

August 17, 1956.

Richard

July 31, 1956

F.

Hansen,
Secretary

pay¬

Continuous Cash Dividends

the

Have Been Paid Since

v

tW.

Harry L. Hilyard, Treasurer

holders of record

Organization in J920

per

A

dividend

of twelve

to

(12i/2<)

of past earnings,

DIVIDEND
and

payable

one-half

holders

a

of record

at

the close

business September

will

stockholders of record
at

of

Books

closed in either
mailed

by

The

case.

not

be

F. DUNNING

Checks will be

Chase

Manhattan

Bank.

ALLYN DILLARD,

Dated, July 26, 1956

the close of business

Sept. 7, 1956.

10, 1956.

Transfer

The

on

Oct. 1,1956, to

share on the out¬
standing Common Stock has been
declared, payable October 1, 1956,
cents

was

Board

of Directors out

the close of

at

share

declared by the

business October 10, 1956.
COMMON

thirty-seven

and one-half cents

for

September

Share

July 26,1956,
of

fifty-nine

to

Chemical & Dye

a

dividend No.274

regular Quarterly dividend of
and three-eighths cents
(593/8<) a share on the outstand¬
ing
Cumulative
Preferred Stock,
The

COMMON STOCK DIVIDEND

the Common Stock of The American Tobacco

Dividend

A regular

The stock transfer books will

July 24, 1956 "

Divisions




SHATTUCK,

Consecutive

Treasurer

REYNOLDS

July 31, 1956.

rec¬

business

-216th-

declared a regular dividend of
Twenty five cents ($0.25) a

COMMON STOCK,

QUALITY

1,

of

THE TEXAS COMPANY

The Board of Directors has

M. J. FOX, Jr.

September

August

stockholders of

August 3, 1956.

No. 11

Jlloomfield, N. J.

on

the

Treasurer

Treasurer

DIVIDEND

6, 1956.

cash

payable

are

C. JAMESON

October 20,

m

in

under

and

Pittsburgh, July 26, 1956

able

per

Exchange Instruc¬
May 19, 1953. These

dividends

PREFERRED

on

Vice President and

upon

(121/*.#)

(V/2%) or

G. F. Cronmiller, Jr.

per

has

twelve

has declared

of

10, 1956.

A regular dividend of One Dollar ($1.00)

of

ending September 30,

DIVIDEND

October 6, 1956.

declared

Directors

cents

exchanged

yet

Company's
tions dated

20, 1956

PAUL

ONE-HALF

corporation,

de¬

The transfer books will not close.

'i

Board

CORPORATION

1956,

has

25c per share'on the
outstanding

of

1956

COMMON DIVIDEND NO. 74

Michigan

one-half

tember

STOCK, payable

a

of

dividend

a

Common Stock, payable on
Sep¬

Treasurer

August 1, 1056.

for quarter

ft

%D Aft

Board

declared

(25#) per share on the
Common Stock (no Par Value)

stockholders

1956.

The

,

NOTICE

Hi

On

Secretary

cents

Sep¬

HENQST, Secretary

IS cities,

A. M. Sherwood,

on
the Common Stock
($1 Par Value) of the Company,
and a dividend of
twenty-five

CORPORATION

1956.

payable
to

the

Aug. 7,1956.

ALLIED PRODUCTS

y

on

share

the

at

August 31,

July 26, 1956.

CCIRP0R4TI0*

Directors

August 3, 1956.

•; ness

I

and

five states and Ontario

O

of

TECHNICOLOR, Inc.

the

on

Manufacturing plants

Page, Secretary and Treasurer

July 25, 1956

M

Board

tember 10, 1956, to stockhold'
ers of record at the close of
bush

-

Sep¬

-vl1;
G.

quarterly dividend of $.60 per

share

Company, payable Aug. 24,1956,

a

-dividend of 25(f per share on the Common
Stock have been declared. Both dividends
are

of

(

declared

been

has

stockholders

A

dividend of

a

N. Y.

$4 Cumulative

close

July 27, 195^, the Board of

Directors declared

per

close

;v

quarterly dividend of $1.00 per

Stock payable September 15,1956,

COMPANY

-

CLEVELAND JO, OHIO

On

19S6 and

stockholders of

to

The

July 24, 1956, declared a quar'
terly dividend of 50# per share
on the
outstanding capital stock
of this Company, payable
Sep'

Sep

THE FLINTKOTE COMPANY

President

EATON

192

Stock

1956

Treasurer

share

202

75#,.

Preferred

Y.

24,

business

payable
Stockholders of

to

DIVIDEND No. 143

quarter ending September 30,

N.

of one
($1.00)
declared, payable

tember 11, 1956.

the

at

JOHN

to

A

6,

Common Stock,

1956,

August 8,

-

,

.

July 26,

Note

Dividend No.

COMPANY, INC.
Dividend No. 182

•

Company

Common

Secretary.

cents

NOTICES

American

Preferred Dividend No.

the

ASHBY,

SOCONY MOBIL

quarterly dividend of fifty (50c)
per share was declared, payable
September 25, 1956, to stockholders ol

Co.

A

•

York

July

I

^

B.

A

■

NOTICES

Bank

Secretary

'

with Dean Witter &

now

W.

•

$

toutt is

at

Secretary

Executive Vice-President and
THE

of

per

1956.

MIAMI COPPER COMPANY

payable

riared

INC.

PORTLAND, Ore. —Richard T.

record

30,

August 3, 1956.

on

September 25, 1956,

With Dean Witter Co.

of

($.50)

declared on
Stock
of
the
14,
1956,
to
close of busi¬

Capital
September

payable

August

dividend

been

Common

.

DIVIDEND

ness

'

Dividend N
Cents
($.40)
Stock has been
October 1, ly:>

A

record

& Co., 50
City,; members of the
York Stock Exchange.
;

has

the

Company,
stockholders

OIL

York

ew

and

COWMW.;^

manufacturing

in

Levien,
Broadway,

quarterly
Fifty
Cents

dollar

one

GERARD J. EGER,

~

.

Brooklyn,

July 31.

of

152

Ave.

1, ,1956, to stockholders of record at the

Aug. 9

on

A

Company have declared quarterly
No.

Philmont

16, Pa., July 26, 1956

share

seventy-five cents ($1.75) per share on
the preferred stock payable September

1. Edward V. Mills withdrew
from

Levien, Greenwald Admit

COMPANY

dividend

Alstyne,

New York Stock

^

Miila.

er

NOTICES

COMPANY

Incorporated
13,560

The Directors of International Harvest¬

City, members of the New

Exchange,

METER

HARVESTER

Dempsey-Tegeler & Co.,

Co., 52 Wall Street, New

&

in

DIVIDEND NOTICES

INTERNATIONAL

Calif.—Vin¬

a

partner

with Kalrr

now

ANGELES,

Sweeney has become affili¬

210 West Seventh Street.

limited

Rich-

Company, Inc., McKnight

LOS
cent J.

Alstyne, Noel Partner

York Stock

;;

(Special tc The Financial Chronicle)

■■i

affiliated

NOTICES

AMERICAN

0aq

Hyman

of S. R.

.

become

R

^ B. Bateman, 243 South

~

Financial Chronicle)

Mich.

Bourbonnais

has

Frank-

Livingstone, Crouse

(Special tc The

.

Bush

DIVIDEND

Dempsey-Tegeler

(Special to The Financial Chronicle)

County Road.

Exchange.

Joins

With

Financial Chronicle)

PALM BEACH, Fla.—E. Joseph

T.

White has become associated with

Stock

(Special to The

39

Secretary

YALE & TOWNE MFG. CO.

Cash dividends paid in every year

since 1899

and Financial Chronicle

The Commercial

iU Thursday, August 2, 1956

(516)

40

next

year

tive bias.

[This

"

'

J ;

many, many

years

long

as

Senator Millikin, ranking Re¬
publican, deviated as little as
possible, if at all, from the con¬
servative tax philosophies which
characterized most of the Repubican party prior to Jan. 20, <
'

Two

instances

•
/

-

!

;

:

■

I

capita income tax cut
and repeal of the dividend tax :
-credit, the Senate Finance Com- {

an

Despite

much y

Bubbledome

segregation~Iegislation, no Fed¬
eral official would dare

to

funds

states

allocate

insisting

upon

segregation.- The Gen¬
Office would
forced to jug the official so

school
eral
be

Accounting

for funds may be dis¬
only according to law,

doing,
"I'm

afraid

that's

not

what I

quite

Muskrat!"

[

Wy•:

bursed

had in mind>
::v';.

and
even

law..
"

:

Administration Changes

j

| duce the Senate and the Admini

adopted in
said Con-,
gress passed at the instance of
.the Administration, the pay-off

1

'«J

.

had

keeping funds from states "vio¬
lating" the Supreme Court de-

highest rates.

Liberalize Ship Loan
Insurance

1930's,

bigger Congressional
following than Eisenhower has,
he got no where,
it As for the desegregationists,
even
without
an
amendment

SECURITIES

income from
the capital gains, tax exempt,
and. tax exempt income areas,
now
partially or totally ex-

|.

the

a

ABOUT!
Broodbottom 8

•

applicable to

ier states relatively less.

WORRY

»

the

especial
the social
security graht formulae where^
by the poorer states would get
relatively more and the wealth¬

of the

| eluded from the

the relative conservatism
of the Senate Finance Commit¬
trate

tee.^ When Speaker Sam Rayput through in February
1955 the double program of the

ANYTHING TO

y."

principle

pet project to revise

AND V

t .YOU WONTT HAVE

of taxation of

ness

illus¬

burn

US

j1 Democratic leadership will be
moving to increase the harsh¬

/;C.:vC'>y
recent

SEE

general

tor of Federal aid programs, and
every such "need" formula has
failed. Even Mr. Roosevelt, back

Committee. ... This .>■
'problem will confront Senator
Byrd at a time when the House

[ bent

t

1953. *

MM

MONEY?

in

the anti-i ■j if the Senate remains Demo¬
cratic in 1957, and the Senate
business, anti-investor pitch of
jleadership f replaces y Georgia's
legislation coming from, Presi-y
J vacancy, it. is most likely to be
dents Roosevelt and Truman,
j with a "liberal." The Senate
and from the House.?
Republican leadership, if Eisen¬
Two vacancies will need to be
hower is re-elected, will be un¬
filled on that committee next
der
pressure
to name to Mr.
year because of the withdrawal
| Millikin's vacancy on the Fifrom the Senate of Eugene D.| i nance
Committee a man who
Millikin of Colorado and Walter
can be counted to go along with
George of Georgia. The latter, '
j the White House.
until the advent of the Eisen-;
| This will make it difficult for
bower Administration, was one
i Mr.
Byrd to continue to keep
of the most reliable of conserv- r
[the preponderant conservative
atives.
/C.;.
..

: ;

-WORRIED

side. However,

the conservative

de¬

the

important (dollar-wise) \sec-

no

ABOUT YOUR

somewhat

moderate

a;

"need" formula is

m-

Byrd reof the Finance

Harry

the leadership of
committee will remain on

that

play

.;'yy

As

mains Chairman

to

same.

Gommittee,

>-

over!
has helped to \

parties

of

conservatives

few

the

segregation amendment backers
against
the
"need"
formula,
many
of the latter being the

week voted.

So

conservative bias

This enabled the southerners
both

■

.

industrial

states.

and

last

Committee will lose some of its ;
traditional and firm conserva¬

wealthier

/•.

.

ership for the broadened social
security benefits this Congress

C.—There

Democrats, from the

relatively

DEPARTMENT

ADVERTISING

possibility that by
the Senate Finance

Repub¬

licans and

Broodbottom8 Bubbledome

Behind-the-Scene Interpretation*
(roo the Nation'* Capital

serious

Now the chief

anti-segregation amend*

ment came, among both

;

on...

a

backing

states.
for the

v

WASHINGTON, D.

states

less to wealthier

and relatively
j

r

is

would go to poorer

more

:r

BUSINESS BUZZ

has;

| It now develops that there
long been in existence a scheme

"By an amendment
1953, which officials

on

loans

was

changed to cash.

istration to go along.

,.

Supreme Court decisions,
if veritably legislation, are
>v\ •*; •
.
j

Next

^

ists

reported out >
(it was passed by the House a
few years back) 85% of the cost
I of a fruit and vegetable market, v v
i whether set up by a municipalUnder the bill as

year

may

be

the desegregation¬
expected to make

gestures

for

only

perfunctory

their

amendment, and the Ad-

'

ministration

needs

the

to * abandon

formula,

and

the

thing

The bill was further liberalized
; will pass, it not being an elec¬
the budget-by
:
ity or under sponsorship, would
tion year."
—as
is always the way with:
/
.[/
,
shifting from the Treasury to
: be
financed by a loan insured
schemes for government insur-[
"private finance" the burden of
IThis column is intended to r
i by the government, according to
mittee killed it.
y [;'fi
i ance of loans -~again in 1954,
financing ships for the U. S.i
•the hallowed FHA-type magic.
fleet the "behind the scene" inte
The second illustration relates J
and finally was further liberal¬
merchant marine. This came to •
:'•:> To start with, the bill would alpretation from the nation's Capih
ized in the closing days of the
to the debt limit. With both the
light with the consideration of a J
and may or may not coincide wi
; low $100 million to be used for
session just ended..
White House and the Demo- 1
y
bill
further to liberalize this
[this purpose.
;
u- i tke**Chroni^e^ownmews^
cratic Congressional leadership
1 scheme, which cleared Congress
As it will now work out a
!
Late in the recently-demised competing to
enact spending
; in the closing days. '
buyer after getting part of the
session, the House
Committee
and welfare programs, the last
Intermountain Sees. Add
:.iAs with several other insur¬
on Agriculture
j cost of the ship paid for by the
once more re-;
remaining vestige of fiscal con¬
W
(Special to The Fixancial Chronicle)
ance^ schemes,-:. this ' gimmick :
j Federal government, must make [ported out this grand scheme,
trol was the size of the legal
DENVER, Colo. — Betty
came
into
being first under
a
down-payment of .12Vz% to
[only to have it fail again.
debt limit. The Senate Finance
Maier, Robert L. McCoy, Jose
previous or Democratic Admin¬
[25% of the balance of the cost
Committee,
particularly
its:
E. Seifert and Lee A. Stark a
of the ship, depending upon the
School Bill May Pass
istrations. Likewise it took the
chairman,
Senator / Harry
F.
now
connected'with Intermou
In 1957
type, of ship.'
T
'! Eisenhower crowd to really ap¬
Byrd of Virginia, was so deter¬
tain Securities, Inc., 309 Colurr
preciate the budget subterfuge's
There is a lot of talk about
The balance of the loan is "in¬
mined to keep some limit on
bine Street.
■[ I
.::"
[virtues and soup them up into
sured" by the government for a
debt expansion, that Secretary
\ the "mystery" of why the school
[practical operating programs.
aid bill was killed by the House - •
term
up
to *20 years.
Previ¬
Humphrey has repeatedly ne¬
Uncle Sammy subsidizes both
and just which political party
ously the loan insurance was for
With R. A. Campeau
gotiated first with Senator Byrd
was
to
blame for the defeat
[the construction and operation
on
this
question, giving the
90% of the ship-buyer's part of
,v
(Special to The Financial Chronicle)
of
American flag
line ships,
of this beneficeht (?) enterprise.
House Ways and Means Com¬
[the cost as to some ships, and
DETROIT, Mich.—Harvey B1
Icargo and passenger.
He pays T 100% for other types of ships,
mittee, which must initiate the
About why the bill was killed
has joined the staff of R. A. Ca
part of the cost of building ships
legislation, the benefit of the
there is no mystery. When it is
.j Under the latest amendment,
peau Company, Penobscot Bid
because they cost more to build
Treasury
Secretary's
counsel
Uncle Sam will insure or guar¬
understood why the bill failed,
than in foreign yards.
Uncle
antee repayment of 100% of a
only after he had negotiated the
there is every reason to expect
also pays part of their costs of
amount with Senator Byrd and
ship-buyer's balance of the loan
this project's approval by Con¬
Straus, Blosser Adds
operation, for the unions have
the Finance Committee.
;;
(after down-payment) for all
gress next year, assuming that it
(Special to The Financial Chronicle)
put over a pay scale for crew
types,of ships. The insurance
[finally soaks into the Adminis¬
<
DETROIT, Mich. —Edward
Vacancies Can Change
v
[way above the costs of foreign
covers interest also*
tration's j head why v the bill i Penner has become connec
Committee Philosophy
;
:
u
j crew.
['CCy - CyC'iv, '£-• t
failed.
with Straus, Blosser & McDow
After Senator Alben Barkley
11; -, ; Marketing Facilities
I
However, even after paying
Only a minority of the memPenobscot Building.
Tried Again
died, his position on the Senate
i bers of the House are so bold as
y.j out part of the cost of a new
Finance
Committee
went
to
For
about
five
years
the
ship built in American yards,
1 to dare to vote against a bill
Senator Paul H. Douglas
(D.,
House Committee on Agricul¬
up until about 1938, Uncle used
Sincere Adds to Staff
which promised to tap the seemture has been attempting to use
to have often to fork over part
HI.). While the late Mr. Bark(Special to The Financial Chronicle)
ingly limitless U. S. Treasury to
or all of the financing costs of
that marvelous Aladdin's lamp,
ley was not rated as a conserva-,
aid in
the financing of local
VERO BEACH, Fla. —John
the government loan guarantee,
five, he was distinctly the gar¬
I the buyers of these ships. When
school construction.'
By itself
Sharp has been added to the st
den variety of practicing poli¬
to tap the savings of life insur¬
this was loaned, it became cash
this small minority would be in¬
of
Sincere
&
Company,
1
tician to whom a philosophy was
ance
out
of the Treasury till, and
companies,
banks,
and
capable of stopping the school
Twentieth Street.
secondary to the business of
! hence
a
disbursement which'
pension funds to finance the
aid bill.
•'y,;.
:.
showed up in the budget.
construction of fresh fruit and
politics, even if the business of
However,
President
Eisen¬
bis party was "liberalism."
vegetable markets. And for five
In about 1938—Maritime Ad¬
hower insisted upon his "need"
TRADING MARKETS
Senator Douglas, on the other
years the committee has failed,
ministration
officials are not
formula,
whereby
relatively
largely because it couldn't insure of the exact year—a ship¬
band, is a consistent, determBotany Mills
mined, and apparently self-con¬
building loan insurance scheme
vinced "liberal" with a disposi¬
A. S. Campbell Co. Co
patterned after the Federal
tion to be most aggressive in
Housing Administration gim¬
^Fashion Park
carrying out his philosophy at
mick was passed.
The governIndian Head Mills
all times in regard to all legis¬

$20, per

to

get

around

*

t

*

1

■•••

*

1

•

"

,

..

•

f

<

v

\

is interested.
Senator George, on the other

lation in which he

hand, until the election of Pres¬
ident
Eisenhower, was almost
invariably with Senator Byrd
on the side of moderation.
The
Senator

changed

with

the

of Administration, no¬
tably coming out in 1953 for a
big boost in the personal ex¬
emptions. Increasingly as he felt
the eventual menace of Herman

change

Talmadge in Georgia to his ten-

Senator George
became
"liberal,'" taking the lead¬


more;

tire,

ment would "insure"

private financing, charging a
for
this
service
designed
build

reserves

up

good losses.
What

for

to

be made

in

checks.

Morgan Engineering

making

wrong

with

this

little wonder child,
that losses would

however, was

not

United States Envelope

fee

National Co.

-

was

particular

t^S|l

loans from

Riverside Cement

Carl Marks & Co. Inc.
•

FOREIGN

good out of debentures,
good,

ship

financing

scheme

insurance,

didn't work.

50 BROAD STREET

Treasury

the

So

loans were

green,

practically

Only a handful of

insured prior to 1953.

SECURITIES
•

SPECIALISTS

NEW YORK 4, N. Y.

Sightmaster Corp.

lerner & co.
Investment

TEL:

HANOVER 2-0050

Securities

TELETYPE NY 1-971

10 Post Office Square,
mw"1. •»wwu 'r'Tr y-r-—

\

*

"

Telephone
HUbbard 2-1990

\
fir.ii.. for.*

.

Boston 9, Ma
Teletype
BS 69