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Price 40 Cents a

Y., Thursday, August 22, 1957

New York 7, N.

Number 5666

186

Volume

U<J:

EDITORIAL
; ,j .4.

ly "WILLIAM

McCIIESNEY MARTIN,, JR.*

Chairman, Board of Governors of
Federal Reserve System.

"We are concerned about

the welfare of millions

;

the
•'
f

• •

lies

families

fixed incomes :such

Chairman Martin outlines structure

especially those fami¬
as

government employees,.; pensioners and others,

whom inflation., inflicts - its greatest per¬

upon

sonal and family tragedies. -Their
are

the

ances

living standards

counted

preceding month's. Lifetime savings

provide security and dignity in old age
out to be continually'less adequate for the

turn

purpose.
current

Insurance bought- at the sacrifice of
needs affords only a fraction of the liv¬

and

standards

ing

protection

"It is not necessary

inflation

to elaborate on the effects
stability of the

including a reduced rate
growth, operation of most basic in¬
dustries at levels substantially below capacity,
and sizable unemployment in a number of areas,
of which automotive production centers are out¬

reflected in many ways,

inflationary spiral is

permitted to continue, the maladjustments al¬
ready apparent in our economy will be aggra¬
vated until we are plunged into serious recession
or worse. Since America's position of leadership
in the free world's struggle for peace rests in the

Continued

of
increasingly urgent

Continued

♦Statement

on page

j
Municipal:

AND

Bonds and Notes

Burnham and
MCMOERS NEW

15 BROAD

- ..

•

AMERICAN STOCK EXCHANGES
YORK 5, N.Y. ♦ 014-1400
TELETYPE NY 1-22S2

COBUBNHAM

Municipal,!;

T. L.WATSON

&CO.

ESTABLISHED 1832

i
1

Members

County and

New

York Stock

American

120

BROAD

NEW

STREET

YORK 4, N. Y.

Teletype: NY 1-708

Bond Dept.

Active
Dealers,

^ClltkwtAt COMPANY

•

PERTH AMBOY

from coast to coast

BONDS & STOCKS

For

WIRES TO

115 BROADWAY

Municipals
MUNICIPAL BOND

MONTREAL AND TORONTO

Goodbody &
YORK

California

DEPARTMENT

Teletype NY 1-2270

NEW

BANK

NEW YORK 5

BROADWAY,
offices

Chase Manhattan

Orders

CANADIAN

DIRECT

York Stock Exchange

the

Executed On All
Exchanges At Regular Rates

Commission
Canadian

New

DEPARTMENT

BOND

Markets Maintained
Banks and Brokers

MEMBERS NEW YORK

BRIDGEPORT

CANADIAN
SECURITIES

Stock Exchange

District Bonds
25

Exchange

Members

^ .

REQUEST

Harris. Upham & Ce

OF NEW YORK

Company

YORK AND

STREET, NEW

NATIONAL CITY BANK

AVAILABLE

Public Housing Agency
•

ARE NOW

Net'

State, Municipal

"MARKET REVIEW'/

UTILITY'

THE FIRST

ST., N.Y

DALLAS

the' Senate Antitrust and

SECURITIES

CABLE:

FIRST

Ruggles before

FOREIGN

DEPARTMENT

their re¬

investors in corporate

MUNICIPAL

BONDS

BANK

by Prof.

RAILROAD

CORN EXCHANGE

statement

;

CHEMICAL

•

♦A

COPIES OF OUR

PUBLIC

State,

make profits because

their costs. Prices enter into both
receipts.1 For a given level of output, a rise
Continued on page 24

registered with the SEC and poten¬
Section, starting on page 34.

DEALERS

HAnover 2-3700

3© BROAD

producers

m
STATE

and;.

BROKERS

INDUSTRIAL*

BOND

published statistics
administered

light on the role of

Monopoly Subcommittee.

UNDERWRITERS

Securities
telephone:

and

costs

Finance,

REGISTRATION—Underwriters, dealers and

whole, I do think that the

Basically,

page

before the Committee on

are

as a

shed considerable

and

y U*ST. Government,
Stale and

which I think

of how much of the

ceipts are greater than

13, 1957.

afforded a complete picture of issues now
undertakings in our "Securities in Registration"

tial

DEALERS

of Chairman Martin

United States Senate. Aug.

SECURITIES NOW IN
securities

present some evidence

the general question

prices.

problem—it

and potential consequences

given rise to

can

and most wel¬

a new, or
W. McC. Martki, Jr.
is as old as
the invention of money—and history is marked with
both defeats and triumphs in dealing with this invisible
but deadly enemy of inflation.
The question is not

insoluble

upward

the

omy

Finance

Senate

the

We are not facing

come.

humanity.
actual

before

Committee is timely

well

spiral and high cost cf living is
manipulation of prices in admin¬
istered price industries.
In this investigation of price
increases in administered price industries, I would like
to state at the outset that I am in no way qualified to
speak with reference either 10 individual industries,
such as petroleum or farm machinery, or to individual
companies, such as U. S. Steel. The investigation of
specific'; industries or firms cannot be done adequately
with the .kind
of statistical data which are readily
available in published form.
These statistics are too
broad in coverage and they .do not take into account the
special' circumstances such as technological change and
quality variation that can be very important for specific
cases.
Nevertheless, from the point of view of the econ¬
due

That is why
pear

inflationary

present

that
we
can
muster.
this opportunity to ap¬

telligence

analysis on the strength of our economy, the
undermining of that strength by inflation poses
a
threat to the future
and freedom of all
"These

is relevant to

bring to bear on this critical prob¬
lem all of the information and in¬

last

inflation, have

country has keen experiencing a

resulting demands, strong and inces¬
sant, have pressed hard upon our
resources, ooth human and material.
In
consequence,
prices have been
rising, and the purchasing power of
the dollar has been falling.
It is of the utmost importance to

of economic

standing examples. If the

having demand

tolerable.

trying to spend more than we earn
through production, and " to invest *
at a rate faster than we save.
The

We can already see its consequences

economy.

policies, and encour¬
Sees our price inflation
supply-cost-side pressures.

aging demand in certain areas.

I would like to

the health and

depre- -

ciation, investment-encouraging tax

period of un¬
usual prosperity, featured by heavy spending, both gov¬
ernmental and private.
As a nation, we have been
Our

Advo¬

depict when and where it can be more effective.
cates stimulating productivity now by accelerated

little inflation is inevitable

constant
or

survivors.

that

delusion

profits, and consumer price ;

? corporate

/index components. Tight money policy at this time is
held to be self-defeating by Professor Ruggles who does

Declares further inflation can be

for

intended

absolved from causing price infla-

tion, and from being inflexible, by Yale University pro¬
fessor after analyzing the data on wages, prices of
manufactures,

additional

restrained
through moderation of private as well as governmental
spending until savings balance demands; coupled with
sound fiscal policy creating larger budget surplus, and
curbing growth of bank credit. Terms tragic a surrender

Administered pricing Is
--

System's overriding problem, maintains

further aggravated by creating

bank money.

than

erodedras each month's; income buys less

constitute

would be

Economics, Yale University

Professor of;

and' organization of

Federal Reserve, and, analyzes nature and character of
problems confronting nation. Stating persisting infla¬
tionary price increases and resulting economic , imbal¬

school teachers- ^

RICHARD RUGGLES*

.
-

of American

■ ;

Co.

STOCK EXCHANGE

1 NORTH LA SALLE ST.
CHICAGO

Doximozi Securities
Grporattoti
■

DEPARTMENT

38a«k of America
-

ExchangePlace,NewYork 5,N.Y.

Teletype NY 1 -702-3

WHitehall 4-8161

NATIONAL

HVVncs ASSOCIATION

300 Montgomary St.,

San Francisco,

Calif.

The

Banks, Brokers, Dealers only

For

Security I Like Best

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

Because Our...

participate and give their

1. Nationwide

private

wire

they

are

system

Pan American

better executions,

mean

faster

for you.

first

American

this

CHICAGO

PHILADELPHIA

•

SAN

and

FRANCISCO

Principal Cities

men

the

RIGHTS

sul¬
Deubte

It took

learned

that

molasses

importance

incidental.

very

back

goes

ftfcpONNELL&fO.
American
120

Stock

Exchange

Stock

Exchange

BROADWAY, NEW YORK 5
TEL. REctor 2-7815

uses

ple

come

tional

Railway

Life
:

Trading Markets
Lomb

demand for sulphur

and

everywhere

most

pipe

Exchange
'

"t,

the

CAPPER & CO.
Exchange)

Exchange PI., Jersey City, N. J,
Teletype JCY 119
N. Y. Telephone
Dlgby 9-3424

direct private wire to
Salt Lake City

for

Webb

with

Texas

about

years.

Vice-

would

have

not

full

faith

The

formative years, the

disappointing
investors, are now
past.

For

the

costly
the

months

June 30, 1957 Pan American shows
a

income

net

pared

with

same

1956

cents

$1,637,692

$699,893
period

the quarter

com¬

during

the;

(equal: to i 82

vs.

sales

chains

cents).

ending June 30th, 45

use

the

this

method

min¬

the

water

sulphur
often

very

perforated

compressed

air,- the

Gulf

have

and

been

many

Sul¬
years

Their

sul¬

control

was

tight that the price of sulphur

hardly

dropped

pression

years..

during
Frasch

the

de¬

sulphur

held firm at $18
per ton, rising to

$23 per
The

present

around

Gull

ton

27*2

ports.

aft'er World
domestic

War

II.

price

dollars per ton f.o.b.
The

PUTNAM

holdings

of
of

10,000

26,000
June

shares.

The

Korean

War

mention

FUND

with

There

(see

1957)

and

LTD.
are

with

only

shares outstanding.

common

the

30,

BULLOCK FUND

1,886,291

blocks

especially

stock

•'x

Pan

American is, in my
opinion, which
which
of

our

have

back up with

own,
a

growth

(selling around $24
basic

raw

financial

capital

reserves.

American

low

Exchange.
want?

(

modest

cost

pro¬

high

the

short time Pan

What

industry and

candidate

New

York

for

Stock

can

Company

York,

Affiliate

Inc.

Yamaichi Securities

Co., Ltd.
Tokyo, Japan

Probe*s

and
111

<fr

Investment

Bankers

Broadway, N. Y. 6 CQrtlandt 7-5680

a n

areas

Henry J. Low

including
Florida

the brand names of Hood,
and Zero and also under

under

Beacon,

privately

owned

labels.

sales have

been

ily,Winn-Dixie

Florida,

where

Firm
in

Trading
All

Stores

other

and

Maintained

Securities

—-

TRANS-CANADA
PIPE

and operates mod¬

owns

Markets

the

expanding stead¬

LINES

Limited

ern

plants in Jacksonville, Fia.,
Charlotte, N. C., and Lisbon, Ohio.
A

fourth

plant at

Fullertori.

recently sold and

was

tory

South

Plainfield, N. J.,
under construction, is

presently

expected tcr be completed
end

of next month.

tni's

new

feet

WISENERAND COMPANY
liilllk
73

creasing business from

the

was

a
company
the verge of bank¬

B20a|

Burns-Bros. & Denton
37 Wall

Street, New York 5, N. Y.
,

»,

t;..

•

■

%.*'

Underwriters—Distributors
;f; Dealers

Investment Securities
-

Canadian and Domestic

leading contender in

rapidly growing field of house¬

hold and industrial
ucts.

Mr.

took

over

after
the

EMpire 3

and. ef-;'

regarded President, Mr. R. Y. Cut¬
ler, has built up its steadily; in¬

ruptcy

Toronto, Canada I

Trading Dept.

the

considerable

which

LIMITED

King St. West

Operation of
plant should greatiy' in¬

overall efficiencies

crease

Pa.

fac¬

new

Cutler,
the

cleaning prod¬
former banker,

Presidency ijn 1949

disastrous

fire

had

razed

company's Lisbon, Ohio plant

with

less

covered

than

about
and

half

by insurance.

HOOD found

its

value

result,
-

8400,000

claims

itself burdened with

bank; indebtedness

after

three

years

heavy operating losses incurred
by the former management. In
1950 slightly in excess of
$1,000,000
was

written

off for

Saving^

deficits, trade

marks, trade names, goodwill, etc.
In the fiscal
year ended Aug.
31,
1949,

the

first

year

Cutler's

guidance,

reported

earnings

under

the
of

sales of $2,300,000.

Mr.

company

$70,000

By 1954 HOOD

Over-the-Counter

Quotation Services

was

net

Sulphur has become

considered,

listing

strong

management and
a

leader in the
sulphur
is

and

relatively

profits, excellent
big

share, traded

producing

condition

and

situation

material, having

structure,

duction

position

attractive.

very

cheap

over-the-counter),
Freeport

for

dominating factors in the

phur business.

large
We

connection

statement

formation

hundreds

through, great

hold

American.

GEORGE

the

distinguish them¬

often

very

farsightedness

its

funds which

that

product to the surface for

Texas

phur

New

operating from
New

HOOD

thing of the
ending

six

Securities

they:- grocery chains are marketing the
^
the company's products.

for

years

company's

supermarkets

prospects of this organization.
and

Yamaichi

through lead¬
ing grocer y

the

have joined Pan American if

Pan

storage.

Atomic Fuel Extraction

Stock

Gulf

Harry

associated

write

tributed

transpor¬

Call

volume is dis-

production

times

85%

annual

President Jaquet comes from Jef¬
ferson Lake Sulphur.
These and
other
excellent men would
not

increasing

Super-heated

into

molten

Mining

International Oil & Metals

Lake

all

laun-

information

current

re¬

dry blues, etc.
About

the

jungle stream
quantities of

For

and

rust

mover,

water
supply.
built, the Na¬
of Mexico gives

enormous

been

the

under
ground, melting the
virgin sulphur and lifting, through

Holiday Oil & Gas

Salt

ammonia,
also

been

President

year.

had

plants

STOCKS

cleaning

bleach, starch and

fresh

water

feet

Guardian Chemical

been

economical

which

,5>S

(Members

estimated
has

forced down through

Salt Lake Stock

Magnolia Park

else

grows

ing sulphur is the so-called Frasch

Tel. HAnover 2-4850

Cataract

ana-

the rate of 4-5%
annually. The

Process.

consumption

1930

•A0

alcohol,

fresh

selves

The

here

^reexveauiGomparv^
on

newsprint.

tires.

world.

Orders Executed

soda, solvents, sugar, textiles and

Guys From Harrison

37 Wall St., N. Y.

household

of the best-known mutu¬

Offshore Oil

ESTABLISHED

ton

agents, such

branch offices

our

JAPANESE

COMPANY,

McGraw

TriangleConduit & Cable Co.
Two

just

are

pounds for every ton
products
and
373/2

for

the

one

Mobile, Ala.
Direct wires to

founded in 1937, is engaged in the

production

1-1557

Birmingham, Ala

Company, Inc.

HOOD CHEMICAL

savings
since
linc, carbon compounds, caustic,
cents a share (same 1956 period, "freight costs on goods shipped into
the New York,
soda,
cellophane* cement, coke, only 22
Philadelphia
and
cents) was earned. • This ;
Baltimore areas' Will be substan¬
copper,
detergents, dyes, explo¬ is
only the beginning.
It is ex¬ tially reduced.
JUsearch labora-.
sives,
glue,
glycerine,
leather, pected
that
the
company
will tories are located at the company's
livestock
food,-lubricants, magne-* show annual
earnings
between main office in Ardmore, Pa.
slum, matches, paints and pig¬
$3.25 and $4.00 in the not too dis¬
During the past
eight
years
ments, pharmaceuticals, plastics, tant
future. It may be significant, HOOD
CHEMICAL,
under
the
plate glass, rayon, resins, soap,
dynamic
leadership,
of
its
highly
that some

TWX LY 77

Louisiana-Delta

substitute

Here

in the production of

Lynchburg, Va.

processes

satisfactory

Sulphur'also its role —just to
give a few additional examples-—

STRADER and COMPANY, Inc.

examples: a large amount
sulphuric acid is needed for

pounds

Commonwealth Natural Gas

industrial

of steel; 65
of
rubber

Insurance Co. of Va.

Bausch

sulphur

treating of phosphate rock for fer¬
tilizers; about 18 pounds of sul¬
phur are required to make a ton

Industries

LD 39

Even

few

American Furniture
Furniture

has yet been found.

Trading Interest In

Bassett

antiquity.

need

Hood Chemical

New Orleans, La. -

LOW

efficient

and

the

good serivce and
delivers

for

been met:

and

Sulphur has to be used

many

which

have

process

have

in real contact with this

product.

The two most essential

requirements

Docks

Today's indus¬
it in almost every manu¬
facturing process even if few peo¬
try

acres.

sulphur

process

tation

depicting Inferno.

iVlCuiUtib

York

22,000

building of

modern

are

had

con¬

completed

the

Actually, the industry's history
Dante

most

the world.

until

general scheme of things but only

Since 1917

the

Frasch

mixed with molasses.

great

were

financing and
H.

Albert

early

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

years of hard work,
geological surveys and;
professional
planning,
arrange¬

sulphur and cider

SCRIP

has

York Stock
Exchanat
American Stock
Exchann,

Members

many

ments

Members New

Manager, Institutional Research Dept.
Glide, Winmill & Co., New York City
Members, New York Stock Exchange

the

important

Sulphur

Steiner, Rouse & Col

Dept.,
Gude,
Co., New York City.

extensive

re¬

years

Securities!

HAnover 2-0700

1957

Bought—Sold—Quoted

Inc.—Henry
of Institu¬

Research

HENRY

American

After

modern

many

our

Basin

cessions there of about

youth when it
was

lies

Tehuantepec, Mexico,
discovery of
process sulphur was made.

Frasch

phur also from

Specialists in

There

Saline

most

Pan

vessel

may

the

Isthmus

stick

member

their

the

headquarters in Dallas, Texas,
the picture.
'
-

For

burned.

Other
Wires

its

purpose,

large

enters

sulphur was
put into the

Teletype NY 1-40
•

Mexico.

Louisiana

—

scram¬

reserves

PAN AMERICAN SULPHUR with

Gulf

ex¬

our

barrels

small

Exchange

BOSTON

therefore

see

sulphur

tional

Co.,

Manager

for

great hope for satisfying the ever¬
growing demand and this is where

year,

Low,

(Page 2)

ble

every

pected.

wooden

infected.

sulphur;
ton. The

States

only

York

United

with

Co.

President,
Exchange Co., Inc.,
City. (Page 2)

Chemical

Hood

Winmill &

not

Sulphur

Deuble,

shortage

selling over $100 per
discovery
and
development
of
new major
sulphur domes in the

contact

childhood

Yorkville

har¬

time,

big

fall

sulphur

was

had to be dis¬

120 Broadway, New York
WOrth 4-2300

the

apple

cider

Member

Stock

direct

such

believe,

goes back to my

vest

Established 1920
Associate

sulphur

New York Hanseatic

Corporation

and,

and

New

.Albert

Alabama &

Selections

American

Pan

nor

that in the world markets

Sulphur Company

actual

days.

Private

be,

sell the securities discussed.)

caused

Members of N. A. S. I).

Complete OTC service
.

offer

President, Yorkville Exchange Co.,
Inc., New York City

department

as an

particular security.

intended

not

are

Participants and

Their

New

3. Broad contacts and

be regarded,

ALBERT H. DEUBLE

Large, experienced trading

for favoring

reasons

(The articles contained in this forum

Thursday, August

...

Week's

This
Forum

Try "HANSEATIC"

Financial Chronicle

The Commercial and

(786)

you

completely free of debt, re¬
ported sales of
$3,000,000, a net
income

of 9

cents

per

ments

with

cents per share.

risen to

distribution
In

for 43 Years

share after

taxes, and initiated dividend

pay¬

1955 sales had

$3,200,000, earnings to

National Quotation Bureai
Incorporated

cents per share and
another divi¬
dend
payment, of
3
cents
was

made.

Last

year'

disbursements

Continued

Established 1913

46 Front Street
CHICAGO

page 6

New
'

SAN

York 4, HX
FRANOlSt»

fcj

Number 5666

186

Volume

The Commercial and Financial Chronicle

...

(787)

INDEX

The Gold Standard—

Articles and News

Retrospect and Prospect

Page

The Problems We Face—William McChesney Martin, Jr.___Covcr

By FREDERICK G. SHELL
New

call

irredeemable

our

CAN

Haven, Conn.

New Haven monetary expert

—Richard Ruggles

"real money,"

The

Mr. Shull provides

paper money.

history of the development of money and
ties

an array

demand, and other historic principles and experiences of

—Andrew

Orrick

avers

banks and insurance companies have

v'i

Municipal Bonds
—John M.

Bargain

vs.

CATARACT MINING

Common Stocks

Templeton..

herein

giving them
opportu¬
to quit
here if

they

are

nity

subject.

But

before

u m p

this

subject

Frederick G. Shull

the

sure,

question is this: The Gold Stand¬
ard is the only means the world

for keeping a
monetary-unit honest; the Ameri¬
can
dollar, of course, is a mone¬

and the people of this
own more than

currently

$300 billion of American dollars—
of

the. form

bank

de¬

posits, government bonds, and life
insurance
assets

—

are"

definite

dollar-

which

all

recoverable

numbers

only

dollars,

re¬

gardless of the value of the dollar
itself.

Therefore

three classes

tioned,

here

interests
read

you

Historic

opportunity
can protect your
will take time

Background

there
lack

woeful

the
all, of

are

savings men¬

on.

Since

the

your

learn how you

you

of dollars in any, or

owner

the

appears

have

understanding

a
on

public as
much-dis¬
money" as opposed
money" really means, let's

part of the general
what

the

currently

"hard

cussed
to "soft

first look

into

the

historic

back¬

ground of money, and see to what
extent gold and silver have

played

important role in monetary
systems throughout the centuries.
an

And

when

mean

who

say

"centuries,"

just that; for those of
read

Old

the
can

Victim of Inflation—Roger M, Blough

AfOM
Investment and Business Advice—Roger W. Babson

been

your

Bibles

can

you

[

No Federal Subsidies for Small Business, Says

two

Vice-President Richard

natural

Spokane Stock Exchange

Bankers

must

have

that

when

something

for
of

Business

Outlook

Credit Supply for

and

Small Firms

—

DIgby 4-4970

Regular Features
As We

•

known value—
those
currencies

and

(Editorial).—

Stocks

Coming Events in the Investment Field

serv¬

Recommendations

Dealer-dBroker Investment

Confining the present discussion
the

period

the

that England was on a

Einzig: "Will French Devaluation Affect British Sterling?"

the

first

Century.

statement

Mc Rae Oil & Gas

Reeves Soundcraft

*Prospectus

the

Mutual Funds

NSTA

his

year

how

Mackie,

HA 2-0270
Observations—A. Wilfred May..-..

"Wealth

INC.

40 Exchange PL, N.Y.

Teletype NY 1-1825 & 1-4844
Governments.

Our Reporter on

1776, Adam Smith describes
meticulous .the
Bank
of

Our

England was in preserving the
Pound Sterling on a gold basis;
and that bank never hesitated to

premium for gold, when¬
in order to main¬
its paper-money at par with

Report.

Reporter's

Public

...—

Securities

Utility

...

Direct

....

JT ires to

Philadelphia

Los Angeles

Chicago

Dallas

.....—...

ever

tain

necessary,

___.i

Railroad Securities

gold.

Securities Now in Registration——.....

Specifically, Smith says that at
times the Bank of England had
been known to so into the free

Prospective
Securities

and pay
sterling
of gold, and then

gold market of London
as
high as four pounds

carrying

Corp.*

Carter Products*

San Juan Racing

face value of only
17 shillings 10V2 pence

pounds

Offerings

Security

Altamil

Salesman's Corner

The Market

troy ounce
coin that gold into English coins

per

Singer, Bean

Notes

News About Banks and Bankers

Adam Smith.

masterpiece,

Request

...

Nations," first published in the

20th

one need only draw on
authority
of
the
world's

For

Indications of Current Business Activity.

In confirmation of that
dealing with the 18th

greatest economist,

Electronic Research
Assoc.*

Century,
the

SU 155

Pacific Uranium

gold-stand¬

decades-of

Teletype:

Washington Ahead of the News—Carlisle Bargeron

From

part of the 18th Century; through¬
out the 19th Century, and down
to

8-8786

250

throughout the greater

basis

ard

past

it can accurately be stated

years,

HEnderson 4-8504

JCY 1160

Exchange PL, Salt Lake City

DAvis

——.Cover

Business Man's Bookshelf.

Bank and Insurance

commodities

See

ices—they chose gold and silver:
to

Exchange PL, Jersey City
Teletype:

yardstick-ofmeasuring the relative

serve

values

that

order

value

Polled

the

establish

came

might

J.F.ReilIy&Co.,Inc.

---

values of their currencies in terms

---—

Members Salt Lake City Stock Exch.

reliable

and

high

Therefore,
most

Nixon

rare

say

seemed

nations

the

dnd

disclose many

that for at
gold and silver
regarded by humans

possessing

FUEL

EXTRACTION

years

values.

pay

2,500

yet discovered

the

beyond

where these

cases

least

that the Gold Standard has
no
bearing on their lives, and,
therefore, why bother to try to
understand it? My answer to that

dollars

both

that

Suffice

say

nation

investigation

PARK

purpose,
that par¬

metals appear in the context.

further.

tary unit;

carried

haven't

great majority of our people will

has

present

MAGNOLIA

seemed

That

Kings.

for

dent

average

little

Steel Industry

Genesis; three
of Joshua; and

times in the First

or more

New Testament

RACING

connection

that

Needed Reform of the Tax Structure

point mentioned; but I am confi¬

reader, it
might pay one
read

dozen

ticular

interest to the

Book

the

and

the conclusion

that

times

ample

n g

three

Book

this

gold is mentioned at least

RESOURCES

—Harry J. Rudick..

value.

count,

not

interested

commodities pos¬
By
actual

rare

times in the book

ah:

right

Book

great

money.

sessing

thus

—

America's Influence for World Peace—Alfred M. Landon.

The Crucially

The title of this article has been

STREET, NEW YORK

RADOROCK

bility in furthering real

thoughtfully chosen, in order that
readers, right at the start, may
khow just what is to be discussed

FEDERAL URANIUM

responsi¬

get

can

Obsolete Securities Dept.

devaluation trickery; condemns further devaluation attempts;
and

can,

Wall !

WALL

American Brake Shoe Company—Dr. Ira U. Cobleigh

our

Deal

past quarter century of inflation, on New

our

you

Telephone: WHitehall 4-6551

past gold standard can no longer continue to be ignored as
has been the case in the past 25 years. Places primary respon-

sibility for

yes,

____

Assumptions and Interpretations Underlying SEC Laws

of authorisupport his contention that fixity, redeemability on

Yes,

Gold Standard: Retrospect and Prospect

—Frederick G. Shull-

brief

Cover

____

irredeemable

zens

cash, cash for obsoletes

"honest

"as good, as gold,!*; and admits being unable to
understand why "modern Republicans"^ still confine our citi¬
money,"

CAN

Inflationary Spiral Not Due to "Administered Prices"

explains why it is dishonest to

paper money

ounce—which was the goldeasily standard
value
of
the pound

and You—By Wallace Streete

The

Security I Like Best

The

State of

Common & V. T. C.

Reeves Soundcraft

Trade and Industry

per

discover that both gold and silver
are mentioned
many times in that

Continued

on page

Washington and You

Published

Weekly

Twice

Quinta Corp.*

Diapers'

land,

Gardens,

c/o Edwards

London,

Sabre-Pinon

Eng-

& Sn—:h

The COMMERCIAL and
ruDAMiri

FINANCIAL CHRONICLE
Reg. U. S. Patent

iX: PREFERRED STOCKS

tun

a it

WILLIAM

Park

Office

rnMPANV

i\T/i

TtiHif

DANA COMPANY, Publishers
Place,

New York

Company

Hry 25»

Spencer Trask & Co.
Members New York
-

BROAD

HERBERT D. SEIBERT,
•

Stock Exchange

ST., NEW

YORK 4, N. Y.

Editor & Publisher

WILLIAM .DANA SEIBERT,

Thursday,

August 22,

„

Albany

•

Nashville

Boston
•

TELETYPE N. Y. 1-5

•

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•

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plete

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1957

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Direct

PHILADELPHIA

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DENYER

SALT LAKE CITY

The

(788)

included

of the securities laws has

and

Interpretations
Underlying SEC Laws

should like to discuss today
first, certain assumptions under¬
lying the philosophy of- the Se¬
curities and Exchange Commission
in its admin-3'

Act in

where

fiscal

ofr
securities ;

the

;

the

(

ificult

securities in violation of the regis¬

requirements. To stop
these types of violations the Com¬
mission
instituted
48 injunctive

The stock market's

actions

and

commenced

and

ad¬

proceedings to deny

ministrative

revoke broker-dealer registra¬

tions

during the past fiscal year
compared with 13 injunctive
actions and 44 administrative pro¬
as

ceedings

the
- '

during

fiscal year.

preceding
•
'•>}
•

•:

persons

administrative

Commission orders
proceedings to

withdraw

suspend

Third,

prescribed stand¬

the
or

the listing

national securities

of securities on

ards.

divergence and selectivity takes

vastly

practical importance in the light of the attention being
given to yield as a rtiarket factor.. With stocks reacting midst
bearishness and growing worry, the factor of the yield on bonds and
in their relation to equities, is regaining some
of its deserved rekpect.
This ' yield-consciousliess re-emerges after the return on stocks
has
declined drastically
(47% since 1949),
accompanied by a record rise in bond interest
yields and consequently with the bond-stock
yield ratio at the highest in a generation;
and with the yield of common stocks in rela¬
tion to tax exempts at an all-time low.
increased

But Which

column

This

margin

The third assumption is that the

to adhere to the

jleiiis of inter-V,
I pretation th&t -

who do not

comply with its various rules pre¬
scribing capital, bookkeeping; and

invest¬

corporate

bro¬

who^distribute

tration provisions

who are subject to
the disclosure provisions of the
securities laws conscientiously try

p r o

dealers

and

kers

against

actions

disciplinary

ments.

Most

Second,.the Commission initiates

savings

proceedings

compared with eight during the
preceding fiscal year.

vast

dif-

brokers

and

the Commission com¬

year

menced 10 stop-order

STORM SIGNAL

A DIFFUSED

file

stinct with fraud. During the last

dealers in order to attract individ¬

ual

under

statements

~"l%

underwriters

institutes

registration
t,he Securities
grossly inadquate form or
filings appear to be in¬
issuers

where

majority of the business and
financial community are honest.

istration

{laws, and second, some, v of

theory.

Anti-Fraud

stop-order proceedings to prevent
offerings from becoming effective

offering exemptions *• and investment
letters, exemptions from registration y and misapplication of
"no sale"

'•.

Techniques

of- private

First, the Commission

and principles
guiding the enforcement and interpretation of our securities
laws, and submits some of the more persistently difficult problems of interpretation. Mr. Orrick contends that in the absence
of statutory compulsion many corporations would not disclose
adequate financial-business information. Indicates instances
of:
gun-jumping, during the pre-filing registration period;
sale of securities prior to registration statement's effective
date; and the making of speeches, even before a security
analysts group and the issuance of special brochures dealing
with the prospects of the issuer. Exposes such other problems
misuse

Acting SEC head enunciates the assumptions

►*>*..

Disclosure and

Commission

Chairman, Securities and Exchange

Acting

%'v-w

ORRICK*

By ANDREW DOWNEY

techniques.

the following
*

Commercial and Financial Chronicle.. .Thursday, August 22, 1957

decline

Stocks?

Aug.

stock-bond

the

1957 traced the
yield ratio from

in January,
1952, down through the
1929-boomtime figure in 1956, to 0.94%

2.8%

1.2%
in

late

For the stock component
conventionally used Standard
A. Wilfred
& Poor's 50 Industrial
Stocks (usually re¬
ferred to as its "Blue Chip Average").
The yield here is

July, 1957.

of the ratio

3.95%.

On the much cited Dow-Jones 30 Industrials

(4.38%

month ago.)

;

May
now

it is 4.70%.
;

But if other and far larger areas of the ^market be taken as
a basis for conclusions
on this yjeld phase, an- entirely different
evidence is adduced. In place of the meager Blue-Chippy 3%.
4% % returns on the "name-' stocks,- a Ihrge supply pf far higher
V

yields

';%;
/ Toe
fourth
assumption, as a exchanges where the issuer has
filed", -incomplete - or--misleading
corollary to the preceding one, is
animal or periodic reports With
that illegal practices that seriously
the exchanges and. the Commis¬
.undermine certain investor sa "esion. During the past year a
total
gqards develop because the statu ¬
01
seven
sucn
proceedings have
tory requirements and interpret a -

going begging. This is shown in thp

are

{qllowing

table,

com-

continue

f arise;- The)

asp.

I sumptions

are *

1ft evident)..

The

interpre-

tations, I sub¬
mit, are con-

...

tions

A.\D. Orrick, Jr.

sistent -wit h

because

the

intend¬

evasion

ment

of the

Congress in enacting

these statutes.
nie

first

*
assumption is that the
.

channeling of. capital to industry
through the process of distributing
corporate securities to the public
.is
an
indispensable function in
susiaining the expansive growth

are

not

clearly understood or

deliberate

careless

financial bar. Included in

and the

this
as

category

the

letters,"

abuse

Private

for

vided

for

offerings and
exchanges of securi¬

private

certain

of opr.economy. The expenditures ties. the misapplication of the "no
of
American
business
for plant; sale" theory in connection with

Offering Misuse

First, consider the misuse of the

the

exemptions from registration pro¬

v",

v.;

offering

private
so-called

exemption

investment

and
The

letters.

question of when transactions in¬
securities do not involve any pub¬

from individual
savings. The authority entrusted
to
the
Securities and Exchange
capital

markets

Commission

regulate the
employed
trading of securi¬
ties in the public markets must,
therefore, be exercised wisely and.
lairly to preserve a healthy cli¬
mate for the raising of capital.
methods and procedures

the sale and

conform

maintained by the
disclosing to the
public financial and business data
necessary for making informed in¬
vestment judgments. The Objec¬
tive, factual study conducted by

sought

Commission

the

Commission

practices
that

would

concerning

unlisted

the

companies
the

subject to

re¬

Ralston
that

second

laws

assumption

regulating the sale

that
and

and business facts about securities

the companies

offered

not

for

sale

traded

the

public markets. Reliable corporate
information
able
and

must

made

avail¬

directly to public investors
to security analysts, invest¬
advisers

ment
"An

address

Security

Analysts

and

counsellors,

Mr. Orrick before
of San Francisco.

the

studied (which are

required to file reports with
the Commission) was found to be

materially

deficient

under

standards of the Commission's

the
ac¬

Purina

United

the

case

This

the

determination

The sixth assumption is that

the

risk of potential abuses to the in¬

vesting public is innate to the
business of distributing, trading,
selling

purchasing such
a
commodity as corporate

and

complex

securities.
Two

Your

general conclusions

must curry

on)

tions. In

exercising its mandate to

these

assump¬

investing public,

the
proceed
vigorously in enforci n g the
prospectus,
reporting and antifraud provisions of the securities
Commission

CROSS—

may

from

protect the

RED

six

derived

laws,
and

first,

second, give frequent
public expression of it's
to the meaning of vari¬

and

clear

views
ous

must,

statutory provisions and of its

their

the

access

kind

same

■

Highest
•V

Price

1953-57
Allied

Chemical

American
Aincr.

Can

bmtl

American

ing

thumb,

the

not

rule

has

offering made

than 25

30 persons

who take the securities for invest¬
and

for

not

distribution,

probably a private transaction not
requiring registration.
the private offering

tion,

issuers

practice
alleged
tions"

have

suers

the

of collecting letters of
"investment representa¬

from

limited

purchasers—usually
number.

exemp¬

followed

many

have relied

group

3!)

Tel.

securing investment represen¬
tations, and accepted them at face

value, without making any investgaUon of the actual scope of
offering and of the financial

and

business

facts

which

should

have indicated that the availabil¬

ity of the exemption might be in

Current
■

the

far-lower

Decl.

'■

Highest

From

Price

8/20

From

High

1953-57

High

I4',f

In"l

4:2

mt'i

187

Nickel

144

Distillers

.17

National

Procter

Cluv.slor

Sears

Corn

Stand.

237

192

115

10.11

Gcn'l

Foods-

Motors..--

Goodyear
Int'l

Harvester

Paper
Johns- Manville

173

Products-

Decl.

Current

8/20
Clo.'-f

Eastman

Nat'l

Steel&

G.
;

Oil

Cal.

12
!)

Stand. Oil N. J.

Texas

Company

Union

Carbide-

133

111

Aircraft

3-i

8
'

United
U.

Steel

WeolTvorth

Westinghou.se

t>2

1-'

10''

Average

This 16% average market decline of the
individual D. J. issues
their highs
compares with a fall of but 8.1% below its

below

August 1956 high in the far broader
group in Standard &
500 Stocks.

Poor's

The

concurrent decline by Hemphill Noves' Index of
1,016 Big Board Issues has been
only 7.1%. On the Dow Jones
Average as a group the decline from the high is 7.3%. Surely,
then, the penalty of the sharply lower yields obtainable on the
Dow Jones Blue
Chips does not carry compensatory advantage
in the way of additional
"safety" via market stability.

Disparity in London
yield divergence also occurs in the British market. But
disparity takes place between issues within the index of
leading stocks in lieu of, as here, between that top-quality group
.

Great

there the

and

the rest of the market.

1 he
sues

Economist Ordinary Share
Indicator, composed of 50 is¬
for their current
popularity, market activity, and

selected

growth
show

characteristics, currently yields 5.32%.

fields far greater

Lnilever
1 inner &

But many issues
lower than this average, as follows:
3.50%
Imperial Tdbacco—

10.30%

Newall___
Boots Pure Drug—

3.19

Lancaster

3.11

United

Steel

•Marks & Spencer—

2.14

Patons

& Baldwin—

the

hi other words, it is demonstrated

British

pp. y ing to

segmentization
market

which

have

Cotton---

that the price of

market is

determined by value and
the specific issue, in lieu of blanket
popularity contest.
What investing
implication shall
a

the

witn

par

duPont

instances, is¬
the formality

Tobacco

In attempting to justify reliance
upon

well

Bethlehem steel

Amor.

Commission

General

considered that

disparity between the Dow(5.18%) Averages with the

Would

the

Utility

claimed to be available. As

6.8

•

i_ \

information about the issuer that
in

6.7

Tobacco.

groups, are quite on a
ing Chippy segment of the market

General Elec—

be contained

•

performance, before as well as during the mar¬
trouble, the popular, leaders, have, per the following
tabulation of the post-peak record of the issues
comprising the
Dow-Jones Industrial
Average, enjoyed no immunity.

knowledge of the offerees

.jeopardy/or non-existent. Neither
the -Issuer receiving, nor the pur"Our ptogram to enforce the dis¬
closure and anti-fraud provisions
Continued on page 23
rules.'

table be used

our

5.9

And in market

turns

about the affairs of the issuer

and

6.0

above-tabulated

principal test in deter¬
whether an offering is
public or private is the need of
the particular class of offerees for
the protection afforded by regis¬
tration.

o.65%)

5.6

yardstick, the stock-bond yield dif¬
ferential is not out of
}ine with past norms.
And the earnings-margin for the dividend
payouts, reflected
in the price-earnings ratios-—although
perhaps not in glamour,
"growth," and emotional-security backing—of the utilities and
rails, as well as in the case cf most of the non-Chip issues in our

mining

ment

counting regulations.

(at

Agricultural)jVIachinerv_
Railroad Equipment-___
'Retail:_-l_
Textile & x\pi>arel--—_

t.<o% available from the D. J. Industrials. If these issues

the

registra¬
porting, proxy and insider trading
tion statement. The Court rejected
provisions of the Fulbright bill
a numerical test of offerees as the
trading of corporate securities in establishes the validity of this
criterion. However, as a matter of
interstate commerce are salutary conclusion. For example, the find¬
administrative convenience, it did
and are necessary to protect the ings-in that study showed that
approve the adoption by the Com¬
paramount interest of the invest¬ material items of information re¬
mission of some minimum figure
ing public. No one can reasonably quired by the Commission's proxy
in determining whether to inves¬
object to the principle that public rules were omitted in over 50%
a
transaction in which a
investors are entitled to receive of the proxy material reviewed. tigate
private
offering
exemption
is
adequate and accurate financial The financial data of over 20% of
The

the

itaii

ket's present

States Supreme Court established

compulsion, many
will not voluntarily
the
high standards

similarly significant is

And
Jones

Furnishings-_ 6.6

the

approximately $10Mi billion must
be raised by corporations in the

statutory

Household

___

5.5

ykl

registration provisions, is both
'persistent and perplexing. In the

corporations

Foods

lic offering, which, therefore, may
lie made without compliance wim

and equipment outlays are cur- f statutory mergers and consolidarently running at an annual rate. tions, and.gumi'iimping,,;
in excess of $37 billion, of which
The fifth assumption is that, ab ¬
sent

5.2

those in

the misuse of so-called "invest¬

ment

•.;

Beverage & Distillers

—___

Finance Companies-5.1

impact of several statutory
provisions and rules on certain

activities

such

are

•

'lne

position.

5.9%

Auto & Parts.

ordered.

been

common types ol transactions and
of' the law by a small
minority of the securities industry practices requires repeated ex¬

Commission

the

correctly

5.4

Baking

stocks on

appraisal factors
classification via

draw from

demonstrated?

10.00
0.50
7 60

That

our.markets
part of tne

now

overpriced, and mart fairly priced? That the public
overpays for prestige and
safety?
Our conclusion is that
this is to some extent true. But moie
important
prwes,
'

and

even
are

inclusive

the

demonstration

that

our

markc
ma-

.al'fei; ..recent, readjustments, mental as well as
cIutfly determined by'factors other than yield.

Number 5666

Volume 186

...

<789)

The Commercial and Financial Chronicle

all categories and

American Stake Shoe Company

Steel Production

The

Electric Output

State of Trade

Commodity Price Index
Food Price

and

Enterprise Economist

Trade

Industry

J)
a

In the auto industry,

•••,

■

With

■

;7'v'. ''

respect to the employment situation for the country as

claims

whole -new

•

unemployment

for

compensation

our

dropped

earned

10,400 in the week ended Aug. 10 to a total of 213,800, the United
States Department of Labor notes.
In the like 1956 week, new
claims totaled 195,900.
The-number of idle workers getting jobless pay in the week
ended

also

Aug.

declined, the report showed.

1,205,100, or a drop of 25,500 from the week
higher than a year earlier.

has

before but 75,900

buying.

into the steel market
to the market situation.

Just when the auto industry will come

model

1958

its

for

holds

runs

Automakers are stretching out
and many

the key

model runs of successful 1857 cars

not tip their steel buying hands

may

until more than a

week after Labor Day.

significant that the former rule of thumb of 45-day lead
time for major automotive orders can no longer be counted on.
Automotive buyers count on getting steel when they want it, de¬
clares this trade weekly.
y
is

evidence that the .auto industry is also
extremely low inventory level. A wildcat shut¬
major automotive supplier forced shifting of orders
to other mills, with deliveries on time as a "must" condition.
Some preliminary orders for October delivery are beginning
to trickle out of Detroit, but not enough to set the pattern. They
are confined to sheets, with the bar market not feeling the effects
is

There

operating
down

for late
are

growing

":
;
■
It is also significant that auto parts makers, who may have
word from their customers, are stepping up their orJering

yet.

the

September, early October

delivery.

Some major stampers

starting to place their own tonnage.
y >'
•
The recent placing of many moderate orders, continues

trade

paper,

will lift August about 5% better than

operating on backlogs of orders for plate,
turals, some tubular products, especially iinepipe.
There is a tendency for mills to step up their
are

still

stocks

steel

because

orders are slightly

this

July. Mills
heavy struc-

semi-finished

better lor plates, shapes

record!

It's

dynamic
ever

better

American

products

the

automotive industry steady passenger

"Ward's Automotive
for

United

Reports" counted 118,614 passenger car
plants during the week compared

States

.preceding week. In the same period of 19o6
units.
The statistical agency said that car output is running at a
level of 23,600 units daiiy this month following 22,529 in entire
July. Production exceeding 500,900 would seem assured for this

with

118,864 in the

output totaled only 98,348

month.

2.491
of

Shoe

cor¬

rect this gap

in investor informa¬
ABK sales are to
railroad industry. These prod¬

the

40%

ucts

include

iron

cast

and

steel wheels, brake shoes, journal

"Ward's" said

that

scheduling 170,000 car
post-World War II record August

of these items

sales have
steady and relatively free
cyclical swings.

been
from

page

A long range policy of diversi¬
had
developed
a
quite

fication

broad

product-mix.

There

are

automotive brake shoes and brake

linings, powdered metals,
rods, air compressors-and
lic presses,
pumps
and
Special stress has been
metallurgical

welding
hydrau¬
controls.
laid on

and

research

man¬

castings capable of
withstanding high stress and im¬
pact are becoming
increasingly
important.
£30 million
is being
steel

ganese

expand

this

manganese

products in¬
buckets,

steam-shovel

clude

ore

dozers, graders and earth movers.
of this is replacement busi¬

Most

providing repetitive sales

la Gillette

About

razor

blades.

91%

(U.

S.)

domestic

gro<=s
is from
business, with

and earnings
in France and
also has a sizable

subsidiaries

Canada.

ABK

stock of a major

construction and

building machinery company,

road

Bueyrus Erie. (At the 1956 yearend, this holding was 36,310 shares
with current market value of $1,-

shown

have

the

1956)

1939—inclusive

1908

1928—inclusive

1926

1952—inclusive

Available for immediate sale in New

York City

Phone:
REctor 2-9570

Beck

c/'o Chronicle, 25
New York

39% increase in net
year.
Net
rise (over

preceding

further 12%

for the first six

Park Place

7. N. Y.

months of

this year.
This

rising

with Dempsey-Tegeler

presumably
all
Sept. 30,
privilege expires

With Dean Witter

? T (Special to The Financial

the

most

sales

curve

part

stems

younger

men.

number of
major executives have not yet
crossed, the 50 mark.)
Research
ahd development of new products
is important too, and the company
is spending approximately $2 mil¬
lion a year on this. ABK has also
been successful in the acquisition
a

basis

would

earnings

1956

figure

tained.

A.
632

$2.00

mill

declarations

this

basis

that

Hemphill,

Two With J. Logan
'.j
'

Actual

PASADENA, Calif.
and

the

would

in the market by the

imminence

further

B. Roberts

2200 Sixteenth

is¬

might suggest that
ratio might ad¬
or more, with
in

rise

FREE!

orders

31,

•

million against

at $57

stood

March

$49.7 million the year before. The
management is at work, too, on
increasing
the
profit m a r g i n
which, pre-tax.

was

11%

above

should be
trends

maintained.

AbK

trie

s-rnt of stock suited

investment. Th

to "prudent ma""

quite remarkably sustained earn¬
ings record, the sustainment of

the
recent and indicated rise therein,
all give the shares a qualitv rating
for

dividends

years,

essential

the

where

and

emphasis

but some

extent

company

the 55 plants
in Can¬
in France. 10,400 em¬

located in 18 states, three
ada and one

and

15,000

continued

AND

SPECIAL REPORTS
ON THE FOLLOWING
* CANADIAN JAVELIN
* BELLECHASE MINING

CORP.

* AERO MINING CORP.

Name

opera¬

tions i6* indicated by

stockholders

interest in the
of this com¬

and progress

success

MARKET DIGEST

Address

desirable.

ployees

CANADIAN STOCK

conservative
opportunity for market advance
income

10.3% in 1956.

realized this year if present

have

Street.

OUR

Unfilled

the
Harrison, Inc.,

has been added to

staff of Richard A.

prices.

Chronicle)

SACRAMENTO, Calif. —Daniel

from 9 to 11

corresponding

are

State

City

j. A. WINTR0P LTD.
Members. The

Broker-Dealers' Association
of Ontario

Registered as a Broker-Dealer with the
■J. S. Securities and Exchange Commission

pany.

When
out

ing

almost

five

lower

first half of
to

Co.,

and the rising stature of

company

1957

Larry D.
Pirtle have

—

Joins Harrison Staff

the times/earning

(Special to The Financial

preferred stock out of
ABK common would not

be retarded

vance

Jesse

joined the staff of J. Logan &
721 East Union Street.

With the

the

(Special to Tile Financial Chronicle)

Beam

minded buyers.
the way,

Miss

wcli, Weedon & Co. and

especial appeal to yield

3363 Via Lido.

Co.,

total $3.50 or mor\

be expected to
make

with Cro-

could

might thus

year

Calif.—

Noyes & Co.

of paying oih

around 70% of net in cash.

Chronicle)

Childress was formerly

be improved this year
basis of the historic prac¬

tice of the company

Co.,

Marjorie C. Childress has become
associated with Shearson. Ham-

$6 was at¬
expect some

James
&

Spring Street.

(Special to The Financial

well

the

payout

—

become con¬
Witter

NEWPORT BEACH,

$6.50.

dividend

South

has

DCan

with

Shearson Hammill Adds

quarterly regular, and a 50 cent
extra, Dec. 28, 1956.
This total
very

Swerneman

nected

year,
possibly
This relates to
present dividend rate of 60 cents

above

Chronicle)

LOS ANGELES. Calif.

this

improvement
to

Co.

he was an officer of Leo
G. MacLaughlin Securities Co.

Oct. 1, 1957, preceded

the

with

the past

only by $20,400,000 of funded debt.

The

importantly
from a hard driving and effective
management echelon, made up for

accident.

(The President and

Subject to prior sale.
Write: Edwin L.

cross

through to
showed

up¬

the $200 million
For 1958 sales rose 26.5%
1955,
which
carried

time,

over

1895

pronounced

past three years,
net sales for 1957 may, for the

mark.

"CHRONICLES"

the

swing

above

Beautifully Bound Sets of

being so pro¬
preferred

description' of

standing

Frank H.

—

WalstoiP& Co., Inc., 595 East Colo¬
rado
Street.
He was
formerly

the

(Special to The Financial Chronicle)

•

Biekel has become associated

Tittle more de¬
per share
earnings on the common.
Willi
full conversion, and elimination
permits

finitive

Something

Propelled mainly by advances
non-railway, products,
sales

converted by

That

investment holding in the common,

first

These

and

year

suance,

export sales

from

PASADENA, Calif.

90,000

over

1957, since the
that date. • V

and blades of bull¬

crusher parts,

and

"FOR SALE"

conversion

pei'

for

are

replacement,

Ford Motor Co. is

Continued

preferred from the corpo¬
bearings and railroad maintenance rate structure, there will be
equipment and track accessories.
1,611,927 shares of common out¬
Since most

Building.

Joins Walston & Co.

rate of

each

for

common

shares have been converted in the

400,000.)

output for August, equalling its

the

unfamiliar with them.

tion,

This actually works
out to a conversion price of $40.15
for the common.
The advantage

Calif.—Jerome
Sutro & Co.,

Goldman is with

Van Nuys

preferred.

will

LOS ANGELES,
K.

convertible

at the

into ABK common

past

Ford Motor Co.

tions in history for

assemblies

ear

This $4 preferred is

sale at Wool-

not

have

were

ahead.

Brake

With Sutro Co.
(Special to The Financial Chronicle)

looked
even
it not for the con¬
vertible preferred which lies

in supermarkets, or
advertised on TV, most people are

are

worths,

ness

production
last week marked an industry-wide 4.8% rise in the August daily
rate of assembly over July and the highest level of August opera¬
In

around

nounced,

Since

and currently sell¬
51. The stock would

year

stronger

its
of its

than

high

reaching-a

tone,

this

presumably

con¬

and

today

company

steel line whose end

market gets going

ing

was.

spent

about the time the general steel
September, concludes "The Iron Age."

divi-

since the year

companies have eased up a little on their pipe orders and
oil country goods are being affected.
This is not expected to
become a trend.
Orders from the oil companies will start to
strengthen

57Vj

incorporation, 1902. And although
it has released plenty, of brakes
in its. time, it's not coasting on its

and eoM-rolled sheets.

Oil

dends.Jo

stockholders

paid

tinuous

Couleigh

ira

.....

motive

been

has

pick-up in steel orders indicates the market is
getting set. for a major strengthening in the middle of September,
states "The Iron Age," national metal working weekly, this week.
From a consumer viewpoint, the mild flurry of orders reflects
a desire by many
users to protect their inventory position. With
many consumers operating at a rock-bottom
level, they are in¬
suring themselves against the effects of a major surge of auto¬

year

business, ex¬
cept 1932, and

The total was

pre-Fall

market

money

-every

power.

pas^eu^er car

production the past week marked an industry-wide rise of 4.8%
in the August daily rate of assembly over that for the month of
July.

products,

new

what
calls

—

proved a stimulus to retail trade and, according to Dun & Brad* j
street, Inc., total dollar volume the past weeK was 1% beiow IQ
3% above tjie-yCar ago level.

with

company

with
Dunn

expansion program now under¬
unremitting search for of companies fitting into its over-.,
way. This program should enable
that may earn more all picture; and mergers of this us to take full advantage pf the
his year than last year, our gaze sort are always a possibility in
widening markets for the com¬
dl on American Brake Shoe. We the
case
of
a
company
so" re¬
pany's newer products and the
sourceful and so aggressive, a
;
liivea what we
steady demand for its Wear re¬
saw
a niagThe common has been an active
sistant replacement parts."
one
nificent
old
on the New York Stock Ex¬
American
Brake- Shoe is
not
line railway change for years.
It had a high
e q u i p m e n t
of 58 in 1946 and then ranged be¬ suggested for a volatile or drama¬
tic price swing in the market; but
tween 31 and 45 for a number of
company with
it does possess nearly all of the
a
unique rec¬ years without indicating any sort
qualities which go to make up a
of dynamic trend. Within the past
ord of corposerene and satisfactory long term
r a t e
success.
year, however, these shares have
?
,
A B K
on
a
h a s: taken
decioedly
different equity holding.

Continued reduced-price sale! promotion! I

better tone.

distinguished old

looking forward

result

Kempton

companies

Some slight improvement was noted the part weA In oveavl
industrial production as steel, electric power and auto output I

reflected

and

and able management, and upswinging earning

young
In

all

fine

Index

Auto Production

Business Failure^

year's

"qualified optimism." He stated
recently: "We are still not satis¬
fied wit.h the. margin of profit
on
sales, and we hope to obtain
steady improvement through the
modernization, mechanization and

By DR. IRA U. COBLEIGlf *

Carloadings
Retail

the

President

see.this

are

three

companies

currently report¬

earnings lor the
1957. it is encouraging
one moving ahead in

net

62 RICHMOND ST. WEST,

TORONTO 1, CANADA:
Telephone: EMpire 6-4961-2
Return complete

ad"erti<#'rmnt.

The

Municipal Bonds

dividend rates

Templeton, Dobbrow & Vance, Inc.

Counselors

Investment

Investment Adviser points to current upprecedentedly low
stock-bond yield ratio, with return on good tax-exempts—

130% above

1946—double

a£ter-tax yield

the

•

possibly resulting from economic reces¬
sion, raising price level of bonds and preferred stocks. Warns
about investors' loose thinking on inflation implications, citing
unexpected results in other nations. Urges far-sighted inves¬
invest their stock market

tors

reserves

stock

prices 'verf much

than

the

Chronicle

because

such

children

and

published
one
of
talks which began with this

sen-

"Never

b efo

t i

p e a c e

since

have
low

1908

they

now

relation

earnings

"iSL

rates."
D

Jones
trial

■

tioning doubly

discourager to

as a

j^ixon

capital invest-

and

told

others

having

little

motivation

to have entered,

seems

...

„

p0rf t0 stock-buying from clearly

tax-exempt

increased

130%

knows

one

bonds

since

1946.

this

trend

when

attributes

market. The aim for

(avoiding

bull

168.

dirty word like

for

smaller

new

enterprise.

indicate
the end

same

that

outstanding
of

tax-exempt

were

the

$16

war

bonds

billion

and

are

now

mar-

index above 500 today.

make

statement

kind:

"Never

yields

low

in relation to

before

on common

taxes been

the fact that prices

to subsidize business in the

United
cannot

stand,

the

stocks net after
as

yields

they

67%.

opposite

have

are now

tax-exempt

bonds."

Another

cause

for the decline in

sistance,
-

tax-exempt bond prices and
sequent

rise

been the tight

their

money

con-

yields

has

policy of the

Federal Reserve Bank based

its

desire
to restrain inflation.
When
business
of

Disparity
uisparity Unnrecedentcd
unprecedented

recession

mon

stocks

vestments

continued
thinking

and

the

But

subject

tion/£e dange^
tors.

xhe

fact

expected, but basically unless
able to stand on its
and

own

busi-;
-leaders
-meeting . 'in

American

compete, there is no
it to remain in the

for

economy."

Richard

Nixon

Continued

Endorsing the plans being made.

"f
"Congress" to be hold
1 95o
*° Permit small
and:;

from

The

page

Security

I Like Best

■

•

increased to 5 cents and at

were

and net income is estimated around

"At this point I suppose I shall

infla-

be expected to engage in the usual

sales of $3,500,000.
HOOD

CHEMICAL

sound

Platitudes about small businesses iinancial and working capital po??"®areedtwith big business in the sition with current assets of $817.United States, And I must admit 000 on Aug 31 1956. including

for inves-

that

as¬

some encouragement can

business; is

loose

Some

n",an,.,^acture °f pens, the Vice- 20 cents per share compared with
President stated as follows:
last,year's earnings of 14 cents on

in-

probability

inflation

feet.

com-

long-term

economically
own

medium-sized firms to exchange leasta similar payment is: antici-

about twice

preaching the advantages of

its

place

111

RtorksTlpcnifp

are

can-

States which

ing, D. C.y to a

wi^fT^en

rnmmnn

Camden, N. J.,;
Aug. 20, at the call of Sydney E.
Longmaid, President of the Ester-

A rather vague fear of inflation

is
fm- hnvina

for

beyond thai
to recognize a

not expect either now? or in the
future; the Federal Government

stock

ings and dividends for two years
and then began an eight-year up-

and

But

n e s s

ket
turn)
is increasingly prolarge part, it has been claimed as legitimate investment
caused by the flood of tax-exempt
policy. Surely much of today's

trend which has carried that

businesses

I think we have
fundamental truth. ..That

prices
low in relation to

very

...

of tax incentives in those instances where it would be proper

ex-

group of

'capital gains'

will end. In

Templeton

cannot

busi-

sidize

IncreaseTax-Exempt

speculative

"we

Yields

John

heads

small firms are

have

business

small

that both big and

its responsibility in the field of
credit activities and in the field

Richard

Vice-President

per

fields

Indus¬

then

interest

Price Average
was

inflation threat, func-

Great

Stock

Common

years

by
changes in in¬

T h

No federal Sulmdtes for Small Business: Nixon

average na- ment, and as a stimulant to in- needed but that
capita, partly flation-hedging
stocks. But an-, pect Governaverage
includes other -and temporary pro-equity ment -to sub-

income

'-following •,i k
Vj /;'
.interesting comments: "What is
^business headsbrought together by
the explanation for this present
sPen Co. % :plan a Congress ^'Presidents of
phenomenon? Of course, there is ^
independent industries,
the public's recognition—belated>-<
-.v.-.' '
V; V

income.

modified

terest

^/^^ ^yihat cok^ ^nds.

For each of the previous in the
souring of potential bond nesses which
(since income taxes began buyers by the terrific shrinkages are y not:s able
in 1913) we have used the top tax on their existing
portfolios,;-with to st^nd on
rate applicable to a taxpayer hav- which
they have become burdened t h e i r
o w n
ing ten times the average national emotionally as well as statistically: feet)'^
>
income per capita for that year/ Asa
result, former avid buyers of
Mr. Nix on
Those
tax
rates
are
tabulated Triple-A State tax-exempt obli;spoke, v i a
across the bottom of the chart of
gations on a 2% basis now shy closed circuit
yields and prices.
away from them at a 3.10% yield,
t e 1 e v i sion
Then there is the affirmative supfrom ? W a s h-

stock

prices been
are

tional

man

May wrote recently -the

fixed

exactly ten times the

dividend

increase

ly—of the

good municipal bonds.

Ten years ago, on
April_17, 1947,
the
Commercial
and
Financial

stocks.

Foresees easier money,

tence:

with ten stocks; , are .again . available™
dncome?:per bargain prices,: can invest those
'greater capita, yield net *fter texjodittle^erves. meanwhile to „n™*

The yield shares, o^ncd tiy a
rise in ■ times
the average

increased

^r^S^dbv

By JOHN M. TEMPLETON

.Thursday, August

Faigain

Veins Common Stocks
]*

Chronicle

Commercial and Financial

*790)

inflation

any magm-

its6lf does not cause higher stoek
tude begins, the government will npjees in the Ion0, run' unless it bat down in tne nation s capitol (fag{} and Government securitiesol
Probably reverse this policy and
Xfde^dns. On ex- that we hear a great deal, particu8329,000
edented
disparity.
At
today's en corn age easier credit and lower amination of inflations in
many
laidy as, we aPPrbac]h . election * current liabilities. Since that time
market prices for common stocks, intel est rates. Such action would
nations, it becomes obvious that yea^Sv
l^ard- ta^hbwampor^ -the company's financial position
the average yield net after tax is exert
upward pressure on
the
very
often stock prices
move
in
, .
.
,
*dwun
t-nuuo
uid,c
in
t
2
smalLbusiness^s is understod to have strengthened
only half as much as it was when P,c®s
of higi-grade preferred the opposite direction. The trend
•'
C^rsei1^ e". further. Book value at present, is
T?11Cfu yere+.ver^
in ?
^axable bonds, and tax- 0£ st0ck prices in most cases cor^nsmess./ May I saV about $1.50 per share. The eapithe first time in history, exempt bonus. A suostantial rise responds instead to the trend of ^ 1 l?S ^ r L *™ SU?ni I
talization consists solely of 700,000
good tax-exempt bonds yield twice m the prices of tax-exempt bonds the dividend
rate. This is true not
^-iV ^
-^eninS
+^7^b a§re.e shares of which the company's exas much
as the
I think it is
Quite possibly, onlv of the general
average after-tax may then occur.
level of stock ^ith„.at this point,
cellerit management owns 320,C
such arena
trend reversal
reversal
yield of common stocks. The stock before
ut.-i.uit sucu
The

attached

chart

gives the
background details of this unprec-

^.o£), c^pared wlS

••

1000

occurs,

estimate
a+nnire
stocks

that

in
in

the

over
tt

14.1.

taxpayers

with

half
are

x—.-i-

taxable

(Even

time in the past 20

tax-exempt
are

now

owner,
lower than

tax-exempt bond yields.) An income of
$20,000 this year is almost

bond prices

Just

are

one

years,

knows when the

upward trend in bond yields will

end,

one

"■

hut

recognize
SwW«^o Twuguwe

knows

when

"the

and

^udv L'l Seldg

ig
,n

Prices

chnres

common

about 46%

comrnpn shares

about 4b A,

;.4»Msmesst;,.w«s «re:not against .small at Soutli PlainfieldN.J,sd)c<i
business; we are for good business "led to start in late Septenbe.

itions

in.

Switzerland, which has had lit-

ing
lrlg

are

moderately above U S yields
the

other

hand

nana, in..Japan

which
wmGn

is
Is

being
»erng

planned

revenues.
tor/revenues,

have

margins

Profit
rroiit

for

planned

—

':nexp:year which will be primarilybeen satisfactory and ai^e belief
? concernedKwith the-'problems'of to be somewhat better than those

andt

medium and-smaller businesses—

of the company s leading

that that's the spirit in which this

tors. Continued strong

further

coinpeti

demand. loi
meeting will be held.
bleach, starch;. ammonia and hQ"
'So as we turn to that particuM detergents in such grown%
ular meeting
and the problems markets as Florida and througnuu..with which it will be
confronted, the New York area, as well as

TEMPLET0N4D0BBR0W&VANCE,1NC.

this,
country, and I know that should contributegreatij'
the-spirit in which the meet- efficient operations and'increased

that's

^inft!atlon'
c?mnl0n
stock yields
net
after' Swiss
taxes
onlv

Stoek

that
uiai

alsn

--4.

attractive,
both for income and for possible
capital appreciation, than at aT1^
any

for

nati0ns

nnw

$20,000 a year. Of course, the
net yield after tax depends on the
top tax bracket of the owner,
yields

varioils

l?Ue "? indivTdual^^

over

stock

Dr;ces ;n

tax-exempt bonds may become
stocks thefe is a place for both ^busior,
of
tbe available
at considerably lower when comnared with one nnothpr'' ness ' ^cl^medium business,; and
'T^e outlook ioi^next yea «P.
k..
nrirps
than
Knt
of
i^oof
u
„^e.n c0«lParea witn one anotneii. small •" business tin
held by prices than now; but at least it.
the. United-pears very promising particulaii}
Various
nation*
have
had
far
morp
,r.._
.
.
.
oo/
vaiious nations nave naa lai moie
gta£es
^ye are ,no£
awajnst big since production at the new plant
incomes can be said that today tax-exempt jnTlatron"'than'%hpV Tin rtpd%tatp^--States.
■ We
ov
T
c-hpH■tates*
&
~
—
- '
T
U~A-

yield net after tax is based

uxiu.

the first

suppose

inevitably,/ will

asked

that
is

—

the

'What's the Government going to
do to help out?"—and, this is a

ing

question
:

fronted

;

course,,

question

that
with

often

are

con-

Washington.

there are,certain

areas

Government
be

helpful

activity ' enn;:
aiding, small busi-.

x,uw

xucv

expansion o

sales

active

with lead¬
foreshadow

company's business
grocery

considerable
ment in the

chains,

diversification

some

improve"

earnings

coming years.

In time

the com-

-g .lctiviti(.s ,nto other

a
,

phases
ts

j ii.ess to survive during this,■ period?^?.
The
wlien costs are increasing arid in. chemical fields js anticipatca.
which
the competition
particu- common shares, traded;' over-theA Imati
b"si,iesai a,nd
counter around, 2.H,' arc regaled
;

i--small businesses

> more

and

well, becomes

// ,'Toi:VexampieK the; Government:
■

has had

-traditional

listic

see

practices

it
are

;foii good capital gam.
-:YL
,y / - '
.
Two With Perry T. "tain
(special, to the financial.chronk^'

ac-

that monoponot

engaged

ASHTABULA,

in which would have the effect of

Hinchliffe

squeezing out all competition. The',

are

Government "also

«i.wrisoccu-

;responsibil-:^i«

ity in the field of anti-trust
tivities to

n
interesting
alow
s
i>ru
a
en si

difficult.

has

now

recognized/^ Blaine

and

Ohio—p,nl1^ jj

Eisner

affiliated with

& Co. 4519

Main

pcalsrfr

peil'-v
Avenue.

f3
rr

njume

186

Number 5666..' . The Commercial and Financial

Chronicle

(791)

:i'

New Issue

$40,000,000

City of New York
3.80% Serial Bonds
Dated August

1 5, 1 957. Principal and semi-annual interest (February 1 5 and August 1 5) payable in New York City at the Office of the City Comptroller. Coupon Bends

in denomination of

$1,000, convertible into fully registered Bonds in denomination of $1,000

Interest

multiples thereof, but not interchangeable.

Exempt from Federal and New York State Income Taxes under
Existing Statutes

and

Decisions

Legal Investment for Savings Banks and Life Insurance Companies in the State of
New York and for Executors,

Administrators, Guardians and others holding

Trust Funds for Investment under the

AMOUNTS,
EE

•

EE
"

Laws of the State of New York

MATURITIES AND YIELDS OR

Due

$5,000,000

each

Due

$4,000,000

each

August

15,

1961-62,

inclusive

Due

$1,700,000

each

August

15,

1963-72,

inclusive

August

15,

1958-60,

PRICES

inclusive

"•

ESS

•

y.v'..-

—

Due

EES

1958

—-

Prices

" '

Yield

to Yield

Due

2.75%

1963

3.50%

Yields
Due

Price

1968

3.75%
3.75

1959

3.00

1964

3.60

1969

1960

3.15

1965

3.65

1970

1 00 (price)

1961

3.30

1966

3.70

1971

1 00 (price)

1962

3.40

1967

3.70

1972

1 00 (price)

(Accrued interest to be added)

The above Bonds

are

offered, subject to prior sale before

if issued and received

us,

City. Interim Bonds of the denomination of

The First National City
Harriman

after

appearance

of this advertisement, for delivery when,

and

$1,000 will be delivered pending the preparation of definitive Coupon Bonds.

Bankers Trust Company

Bank of New York

Smith, Barney & Co.

Ripley & Co.

and subject to the approval of legality by Messrs. Wood, King & Dawson, Attorneys, New York

Guaranty Trust Company of New York

The First Boston Corporation

Halsey, Stuart & Co. Inc.

C. J. Devine & Co.

Phelps, Fenn & Co.

White, Weld & Co.

Incorporated

Salomon Bros. & Hutzler

Continental Illinois National Bank
and Trust

Mercantile Trust Company

Shields & Company
Ira Haupt &
"

Bacon; Stevenson & Co.

Roosevelt & Cross

Incorporated

;

F. S. Smithers & Co.

Estabrook & Co.

The of
First National Bank
Portland, Oregon

Kean, Taylor & Co.

Dean Witter & Co.

W. H. Morton & Co.

First of Michigan Corporation

Clark, Dodge & Co.

Co.

Kidder, Peabody & Co.

Company of Chicago

Geo. B. Gibbons
& Company
Incorporated

L. F. Rothschild & Co.

Shearson, Hammill & Co.

Robert Winthrop & Co.

Lee Higginson Corporation

Incorporated

C. F. Childs and Company

Spencer Trask & Co.

Laidlaw & Co.

W. F. Hutton & Co.

Incorporated

Rand & Co.
*

Fitzpatrick, Sullivan & Co.
"

Boland, Saffin & Co.

Third National Bank in

Nashville

Shelby Cullom Davis & Co.

G. C. Haas & Co.

Byrd Brothers

Dreyfus & Co.
Provident Savings

R. H. Moulton & Company

Thomas & Company

F. W. Craigie & Co.

Baker, Weeks & Co.

Bank & Trust Company

Cincinnati

August 16, 1 957

The Ohio Company

Manufacturers and Traders Trust Company
of Buffalo

of Cleveland

First Southwest Company- Stern, Lauer & Co.

A. G. Edwards & Sons

Tilney and Company

Seasongood & Mayer

The National City Bank

Bacon, Whipple & Co.

Hannahs, Ballin & Lee

Wallace, Geruldsen & Co. Elkins, Morris, Stokes & Co.

McJunkin, Patton & Co.
Van Alstyne, Noel & Co.

Penington, Colket & Co.
MacBride, Miller & Co.

i
*

Commercial arid

The
8

August, 22, 1957

Financial Chronicle. • .Thu.rso.tii',

(792)

Ltd., 62 Richmond
available are re¬

Javelin—Report—J. A. Wintrop

Canadian

Canada. Also
ports oh Bellechase Mining Corp. and Aero
Street, West, Toronto 1, Ont.,

COMING

Mining corp.

EVENTS

Company—Appraisal of acquisition of Co- :.v
Company—A. M. Kidder & Co., I Wa
Street, New York 5, N. Y, Also available is a memorandum

Federal

Insurance

Field

Investment

lonial Life Insurance

Recommendations & Literature
understood that the firms mentioned will he

It is

pleased

New

39 Broadway,
are

data

>■,

■, y

,,,

Federal

laws

Area

Resources—Booklet describing industrial opportunities in

region served—Utah Power & Light Co., Dept. K, Box

the

899, Salt Lake City 10, Utah.

of the Fund's shares.

the Nuclear Navy;

tfie atomic vessels

artist's

now

International Textbook

Mineral, Company—Atomic DevelooDept. C, 1033—30th Street, N. W.,

Labrador Mining &

Mutual Fund, Inc.,

ment

Washington 7, D. C.
View

Burnham

—

letter

investment

Monthly

peg
—

Burnham and
Also avail¬

Company, Wilson
Metal

Earned

—

Portfolio of pictures

—

Chesapeake

—

Trading

—

120 Broadway,

5, N.' Y.

Wm. H.

Goodbody & Co., 115

—

New York.
1956

48th Street, New York 17, N. Y.

Forster & Company* 18 East

up-to-date com//, parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield-and market performance over a 13-year period —
National Quotation Bureau, Inc., 46 Front Street, New York

Chicago—Analysis

4, N. Y.

cific

Railroad

New York
Twelve

World

Robertsliaw Fulton Controls

r..."//v-;

Standard

Pressed

& Co., 17

;

the Homestead.

wood Beach Hotel.

April 23-25, 1958

American

Texas

1958—Discussion of outlook—Lam-

Oil

Corp.

•

Watson & Co., 25

Richelieu, Murray Bay*

Manoir

Quebec.

Memorandum

—

Kramer

Wall Street,
—

Data

—

Pont, Homsey

& Company,

New York 5, N. Y.

Cryan & Co.,

II. I. Thompson Fiber Glass

the Broadmoor.

Co.—Memorandum—Stern, Frank,

Merrill

Meyer & Fox, Union Bank Building, Los Angeles 14, Calif.
Shoe

United

Drilling Company, Inc.

—

Analysis

—

Rowles,

—

Memorandum

Herzfeld

—

DAYTON, Ohio — Louis R.
is
now
associated
with

Marks

Westinghouse Electric—Analysis—Bache & Co., 36 Wall Street,
New York

Witter & Co., 14
Also available is a study of

Beryllium Company—Analysis—Dean

Street, New York 5, N. Y.

Corp.

Merrill

companies.

Wall

Machinery

Stern, 30 Broad Street, New York 4, N. Y.

Winston &r Co., Bank of the Southwest Building, Houston 2,
Tex.
Also available is a comparison of ten marine drilling

Brush

5, N. Y.

Corp.

Also available is

bulletin

(Special to The Financial Chronicle)

Corp.—Memorandum—Oppenheimer &

Johannes

Towne—Analysis—Purcell & Co., 50 Broadway, New

York 4,

— Henry J.
with
RemmeleCo., 118 East Broad¬

GRANVILLE, Ohio
Skipp

now

way.

N. Y.

Trading Markets—

Polaroid

With Southern In v. Co.

Joins White & Co.

(Special to The Financial Chronktf)

(Special to The Financial Chronicle)

CHARLOTTE, N. C.—Edwin

Langrall

Orr Radio

Reaction Motors5.

Roadway Express "A"

now

with

Southern

ST. LOUIS,

has

6^en

White

ston

Valley Building, members of the
Midwest Stock Exchange.

Company, Inc., John¬
Building. He was formerly

with McDaniel Lewis & Co.

„&

TRADING

SECURITIES
Dank, Insurance

DEPENDABLE MARKETS

Northwest Production

\\IFlorida's

Invest in

Three States Natural Gas

Delhi-Taylor Oil

Southeastern Public Service

Big Piney Oil & Gas
Special Reports

TROSTER, SINGER & CO.
74

York

Request

Security Dealers Association

Western Securities Corp.
One

DEMPSEY-TEGELER & CO.

Exchange Place, Jersey City, N. J.

Telephone HEnderson 2-1000

Open-end

ohone to N. Y. C. HA 2-0185

Triangle

Golden

TRADING

DEPARTMENT

UED D.

—

MM51

TELETYPE

LAURENCE j

Pmmmmmmmm ? < ^
&

Trinity Place, New York 6, N. Y.

Companiest

Industrials

■

New

MARKETS

FLORIDA

Mo.—Karl V. Pieper

added to the staff of
Company,
Mississippi

Investment

American Marietta

Members:

With Remmele-Johannes

Electric

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

Lynch, Pierce, Fenncr

Beane, 4 South Main Street.

Chrysler

Westinghouse

the outlook for Titanium.

Active

Lynch Adds

(Special*to The Financial Chronicle)

and American Bosch Arma.
Bartle

Security Traders Asso¬
Convention at

Annual

ciation

Milk Street, Boston 9, Mass. Also in the same circular are
data on Safeway Stores, American Agricultural Chemical

Brewster

(Colorado

Springs, Colo.)
National

Corp.—Memorandum—McLaughlin,

1958

29-Nov.

Oci.

& Co.,

Incorporated, San Jacinto Building, Houston 2, Tex.
Oil

Hotel.

(Canada)
Investment Dealers' Association
of Canada annual convention at

June 9-12, 1958

N. Y.

—

(Houston, Tex.)

at the Shamrock

:\-v/v;

Holly¬

Group Investment Bank¬
Association annual meeting

ers

'!, r

Wall Street, New York 5, N. Y.

at
'

Texas

Co.—Memorandum—Kidder, Peabody

Steel

Convention

Annual

Company—Analysis—H. Hentz &

Broad Street, New York 4,

Texo

Steel

?, r;

(Hollywood Beach,

Dec. 1-6, 1957

Also in the same bulletin are

Strutliers Wells Corp.—Memorandum—T. L.

born, Riggs & Co., 99 Wall Street, New York 5, N. Y.

Bethlehem

Convention

Annual

ciation

Main Street, Houston 2, Tex.

Market for

(Hot Springs, Va.)

National Security Traders Asso¬

Co., 72 Wall Street, New York 5, N. Y.

Promising Low Price Common Stocks—Report—Peter¬

Sugar

ing at Beverly Hills Hotel.
Nov. 3-6, 1957

Fla.)

Street, New York 5, N. Y.
data on Dana Corporation.

11 Wall Street,

McKinnon,

Exchange

Investment Bankers Association

.-n

5, N. Y. "

& Company, 3511

son

Stock

Firms Board of Governors meet-

—

Co.-^-Thomson

(Los Angelea,

Association
'

Glass—Data—Herbert E. Stern & Co., 42 Wall

Pittsburgh Plate

Analysis with particular reference to
Atchison, Topeka & Santa Fe, Baltimore & Ohio RR., Chi¬
cago, Milwaukee* St. Paul & Pacific, Louisville & Northern
Railroad Co., Southern Railway Company and Western Pa¬
Securities

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

Calif.)

;

and

day at the Happy Hollow

10-11, 1957

Oct.

Salle Street, Chicago

Production—Report—Western

Industries, Inc. ^

Banker#

frolic

Omaha Club).

Co.—Bulletin—De Witt Conklin .Grgahizatioii, 120 Broadway, New York 5. N. Y. Also available
are
bulletins on Hercules Galion Products, Inc. and Topp

•

annual

Country Club

Pacific Gamble Robinson

Over-the-counter Index—Folder showing an

Railroad

Association

vHr£

(Omaha, Neb.)
Investment

Nebraska

Company of

Big Piney Oil & Gas.-/:\i \--y

Exchange

ing at Mark Hopkins Hotel.

Securities Corp., 1
Exchange Place, Jersey City 2, N. J. Also available are re¬
ports on Tluee States Natural Gas, Delhi Taylor Oil, and

Operating; Results—Bulletin—Harris, Kerr,

Stock

Oct. 10, 1957

New York 5, N. Y.

Tegtmeyer & Co., 39 South La

Northwest

•"/:

Hotel

Motor

— Yamaichi Securities
Ill Broadway, New York 7,

Francisco, Cal.)

Firms Board of Governors meet¬

Current informal ion

.Company of New York, Inc.,

Association

3,. Ill,
Japanese Stocks

Bankers Association

Oct. 7-8,1957 (San

Corp.—Memorandum—Wnlston & Co., Inc.,

North American Life Insurance

(Santa Barbara,

1957

Biltmore.

Analysis in

Mining

(pre¬

Meeting at Santa Barbara

Fall

field
Newmont

Corp.* Corning Glass Works, and Black & Decker

turing Company.
cusses 30 Rail Equities,

Inc.

current

Uphain & Co., 120 Broadway,
Also available are analyses of Ilertz
Manufac¬
Current issue of the "Pocket Guide" dis¬

York

New

Memorandum

Club

dinner Sept. 12 at
Club).

Cal.)

Francis I. du Pont & Co., 1

Review"—Harris,

'"Market

—

Sept. 25-27,

current issue of "Gleanings"—
Wall Street, New York 5, N. Y.
Also available are lists of selected issues in various cate¬
gories, and of shares reacting more than the market.

Motorola,

Stockholders Investment—Calculations of returns on

companies—McDonnell & Co., 120 Broadway, New York
5, N. Y.
"
" ' •
313

Investing for Inflation—Lists of suggested securities in

Hydrides, Inc.

Country

Investment

— Analysis — Securities
Building, Dallas 1, Tex.

Broadway, New York 6, N. Y.

Railway, 3808 Terminal Tower, Cleveland 1, Ohio.

and Ohio

Medinah
ceded

the University

Building, Toronto, Canada.

& Gas Company

Mar Tex Oil

Company, 15 Broad Street, New York 5, N. Y,
able is current Foreign Letter.
Chessie and Her Family

— Cosgrovc, Whitehead &
York 5, N< Y. .. •• j-,-\

Exploration Company Limited— Analysis
Sons,. 173 Portage Avenue, East, Winni¬

and Royal Bank

(Chicago, 111.)

Municipal Bond Club of Chicago
21st
annual field day at the

James Richardson &

Bro¬

Whyte's Restaurant.

Sept. 13, 1957

Analysis

-—

(New York City)
of Customers'

Association

kers annual dinner and election

—

Gammack, 44 Wall Street, New

brief¬

Hotel.

Sept. 12, 1957

poration.

Comments on High Voltage Engineering-

Foote

and

Company

all

Association

Bar

Hopkins

are

Analysis — The Milw aukee
Company, 207 East Michigan Street, Milwaukee 2, wis. Also
available is an analysis of Texas Eastern Transmission Cor¬

in
operation, under construction or planned; a table showing
the principle contractors for the ships and reactor com¬
ponents; also mentions the large Swiss and Dutch holdings
showing

Qjty

General Merchandise Company

Atomic Letter (No. 30)—Features

conception

National

Francisco,

conference
on
.securities
& regulations at the Mark

ing

Bank —Data — Joseph Faroll & Co.,
Broadway, New York 6, N. Y. Also in the same circulai
data on Manufacturers Trust Company.

First

(San

1957

Sept. 6-7,
Calif.)

:;>vV.V...

Norbute Corp.

..v,,'..-;',

Corp.—Data—McManus & Walker,
York 6, N. Y. Also in the same circular,

Products

Fibrehoard- Paper

send interested parties the following literature;

Co.

J. C. Penney

COMPANY

INVESTMENT

SECURITIES

201 S.E.lsI Ave.

Miami, Fla.

Phone; Miami, FRanklin

3-7716

Number 5666

186

Volume

(793)

.The Commercial and Financial Chronicle

' .psychological effects of ..the French
enable them to. sell short/Nor is-; B 'tf*II4im«
Mm •
•'devaluation :oix; 'sterling;.'-;- Once. - there too much foreign-owned^ niAillavIS «9I8S Kli
more ,the events have proved that
sterling available for withdrawal.
'
"*
•: official .denials
of ' intentions';to On the other hand, a large-scale'

Mi'•*

f'b

,/*' )

For

at their

/devalue cannot be taken
face value.

By PAUL EINZIG

bound to

widespread feeling that sterling

There is

British economist .discernsr possible

French

likely to be the next currency
It is true, rthe basip-situation
of Britain is incomparably strong-

for the
devaluation and'calls attention to factors—even

Noted

to go.

success

though unwarranted—which mayv cause distrust of British
sterling. Dr. Einzig holds that pessimism concerning the franc

shift to sterling; sees little difference between.inflationary
in Britain and France; and states "a purely
speculative attack on sterling could not get very far."

announced by the French Government on Aug. 10 amounted to a
devalua-

20%

creation

had

true, the offi-

now

cial parity re-

some

mains

0f
of

unu nJ

changed. But

choice

devalued

extent

the

20%.

Exporters and foreign visiof

tors

will

France

receive

20%

those

except

materials—and

foreign

essential

French

countries

have

French;measures

anticipation

de-

xhe development of such

QGney

depends

largely

ten-'
the

^idlfcfaiw

•

fUcrht

simisms about the Prospects of

Hemn

/+.1

ifl

aSs

Trust' Comnanv

-v

V-

—.

...

.■

rvo.wi 7QTinn

nnrl

itc -hm n ^>h

what

the

The degree of the accentuation of 'Wasserman and Eugene M. Wifr
that fol- ijams have-joined 1 the staff of

Speculation's Chances

take to undenate the possible obtain a

-Julian Francis & Co., 291 South
La Cienega Boulevard. Mr. Wasserman was previously with J.

Logan & Co.

sterling credit that would able.
—

—

somewhat

involved

practice.

means

ATLANTIC

Moreover, the former "black mar¬
ket" in

foreign currencies will be
legalised, so that the depreciation
of the franc has been officially

w
.

H '

recognized.

This is under

Too Late"

Is It "Too Little and

the

surprising

franc

is not that
devalued early in

was

1957

August
and to

the

■

earlier

much

$100,000,000

The his¬
when the

'thirties

devaluations

successive French

to quote M. Paul Reynaud's
memorable words, "too lat^e and
were,

The Atlantic

too

little," appears to have re¬
peated itself. It cost France con¬
sacrifices

siderable

the

defer

Convertible Subordinated Debentures

which
-could
with
benefit have been«undertaken a
year or two earlier. And the 20%
cut leaves very little safety margin

devaluation^

that

would

free

offer to buy, or as
made only by means of the Prospectus.

offering of these securities for sale, or as an

offer to buy, any of such securities. The offer is

higher degree.

tory

circumstances to he construed as an

but that it

by 20%

not-devalued

was

solicitation

What

enable

France

Due

Dated

for

Convertible into Common Stock of the

devaluation of 1949.

August 15, 1957

prolonged ;
period, just as sterling was free V
of pressure for a while after the :
pressure

until August 15, 1962
in certain events.

Company, at $53 a share

increasing prices, subject to adjustment

and thereafter at

August 15, 1987 "

Even so,

it would be ungracious.,/
ungrateful not to pay tribute/

and
to

French

the

successive
for the

courageous

put

in the

which

ment

effort
a

fight they

interests" of

inflation.

resist
ert

Governments

To resist devaluation

cause.

resist

And

•

had-\-■

light

For in the

plus accrued interest

Copies of the Prospectus may be obtained from the undersigned o)ily in thore States in
signed may legally offer these securities in compliance with the securities laws of the

inflation deserves

thanks, not only from its
citizens but from the world

large.

•

vote of

own

i? to

Govgenuine

lost

every

makes

Price 100%

to the"

and

people

French

which the
lespeitite

States.

of the

experience of recent years it has
become

obvious

that

inflation

international trend which tends

gain

in strength

yields

country
pressure.

The First Boston

would

criticize
France for having been too obsti- nate in trying to avoid the inevit- :
able.

Smith, Barney & Co.

each time a
its relentless

But

easy

country

Blyth & Co., Inc.

in too easily to pressure to

devalue
speculative attacks
currency. The fact that the

invites
on

its

franc

fresh-

was

against

Kuhn, Loeb & Co.

Corporation

which gives

Glore, Forgan & Co.

defended for nine years

heavy odds may possibly

Lazard Freres & Co.

Eastman Dillon,

Union Securities & Co.

Goldman, Sachs & Co. Harriman
Ripley & Co.
Incorporated

Kidder, Peabody&Co.

Drexel & Co.

Lehman Brothers

discourage further attacks against
it—at any rate for the time being.
1

For this

reason

possibly

prove

the .20%

Speculation, having
tory, will seek
next

new

cut may

sufficient.
its vic¬

won

targets for its

attack.

Stone & Webster

August 20, 19.57

nftin/ve

of dollar commodities by-foreign they distrust"Sterling \«6uld tend '''
holders of sterling.
"
to aggravate: pressure w sterling:

the

surcharge of 20%. At any rate this

arrangement

i''i? T

of tbe
New iamHiii*York Stock
Exchange
,
seeiiritiea*

pay

nnmJd
fSS

as the nr
adviser to the
Noves
Po
mpmhrn

York

corresponding devaluation within the next few ^
^^Sst?ibufe shares of
Frenc? measures.
- .
months ls hkcly to be anticipated. S,' \r custiiDute snares
~"v
Bllt there is nothing much to
— jju
But\ heavy gold losses may wvuf
occur Flduciary
nnnv thrnu«h"ik
Mutual Investing
nwn
Coinnr.
choose between inflationary wages. cturing the autumn: and even it Pan^
jnrou^n^us ipwn sales pr

by the

however,

Since,

a purely speculative attack on the pressure on sterling
relatively small, this effect is like- sterling could not get very far. lowed the devaluation of the franc
ly to be relatively moderate.
It is difficult, though not impos- has provided a reminder of the
Nevertheless, it would be a mis- sible, for foreign speculators to extent to which sterling is vulner-

raw

visitors

balance

Fiduciary Mutual

Richard K. Davis has been
valuation might cause some incon- named manager of sales for shares
venience. Above all" large-scale °*
Fiduciary Mutual Investing
rdefermenf'r6f "cancellation of or- Company,- Inc., it- has beem anders for British and Sterling Area hoitnced by Hemphill, Noyes &
goods in anticipation of a devalua- Co., general distributor of,'the
tion might cause serious difficult mutual fund. Mr. Davis, who has
ties. "
J
/••/*-■
■ ' >
been associated with the securiBritain

i
3 restrictions on the flight sterling. So long as the gold re°* national capital
are much more seive
cGrve remains rensonahlv hi«h nn
fL.
remains reasonaoiy nign, no.

extent to which French industries
compete with British industries is

theysJu totoe*banks. Importers8
—

British

wnT'be"stiinSated

franchadbeen
„

sterling.

the

goods
actly the samet 2054 bonus.

Einzig

\
♦ *
a
■
i
^
*ii
but
to devalue,
will

focused

extent

concession is likely to reinforce pes-

thlt

conditions

payments may be directly af-

fected

affected in ex-

p*ul

due"

?ln !r abroad. . Each major'wages

in which the French Government

is
is

It
it

the

payments

likely to be lollowed with interest

it seems
possible, and even
probable, that the wave of pessimism which had contributed towards

the

tion

franc
nanc.

the

?? business lor several .years,
Join.ed Hemphill, Noyes last May.
progress of the inflationary wages
Fiduciary Mutual Investing
British balance of payments,
spiral. The outcome of wages de- Company,
formerly known as
at the moment more or less jha'nds in the leading industries is Hudson Fund, Djc., & a fully -

decided; upon recently
by-the French Government. And

deferment

sP.ite °* the heroic cuts of ex-

penditure

Pessimism Diverted to Sterling

LONDON^ Eng.—For all practir-;

balanced, while the
has a huge deficit

■French Budget
1

wage pressure

the financial measures *

than that ofv France. The British

Budget

may

cal purposes

Securities Corporation
"

Merrill Lynch, Pierce, Fenner

& Beane

White, Weld & Co.

The Commercial and

3—"The

Point

ment of

treaty

Thursday, August 22,
1957

the government

the world's two historic peace

all

for

Both were built on the

strength of
and

Britain.
received

tries

Point 5—"A

contributions
from

peo¬

sol¬

ples

diers

Alfred

case

belief

Landon

rule of imperialism

and

Americana

in complete

—

economic strength

plus the

—

general principles in six of Woodrow
Wilson's 14 points—as com¬
mon

ground for the free nations.

I11

April—in the Mediterranean
we

mobilized the Sixth

Fleet in support of Jordan's inde¬

pendence,

the

what

whole

world

Eisenhower

That

saw

doctrine

victory for the
far-reaching con¬
sequences
based
on
.America's
military and economic strength.
means.

free

nations

was a

In October*

in 1956, the applica¬

'equity and justice,

tion of

determined.."

and

12—"On self

That,

that

every

de¬

course,

traditional

people

have

own govern¬

14—"The

formation

specific covenants, for
the
purpose of affording mutual guar¬
antees of political independence
and territorial integrity to great

vote

which Britain and France and Is¬

United

States

Asia!

distrust

among

That also

address

Instead of following the role of

the

signed with the rest in the

being

with

Re¬

lations, Wichita, Kan.

foster

modern

higher

educational

building

the

creating

announcement

solicitation of

foreign

conducted
United

some

policies

in harmony

Nations

criticism.

is neither

offer

offer to sell nor a
of these securities.

buy any
The offering is made only by the
Offering Circular.
New

countries

standards

centuries

—

older

than America.

difficult

strength

Ameri¬

understand

ca's using its

and great

resources

nromote

based

peace

the practical problems and in¬

tellectual movements for the gen¬
eral
welfare
of
humanity.
We
saved

helpless Russians
II.

until

Not

in World

h*T

plans

for

reducing all the world to ComtriV

religious

dom.

every¬

than

thinking

new

faith—that
lish

air

Reli¬

free¬

That

even

the

it is

But

Hindus.

and

Freedom
where.

—-

the

desire—to

new

estab¬

better basis the day by

workings of society, and
bringing the real meaning of the
tmths of civilization to

Electronic Research

Associates,

human

COMMON STOCK

(Par Value $.10

per

tries

that

legally be distributed.

piay

arc

and

recent

Exchange PI,, New York

August 20,

1957

Mackie,
S

reviewing
and

Constitution

are

entitled

the

pursuit

shaping
even

over

their

world-wide

inc

HAnover 2-0270

that

"all

men

life—liberty—and

of happiness" is re¬
politics and economics

in darkest Russia and China.

remember President Franklin

D. Roosevelt

think
the

all

actions.

discussing with

was

him—what has

Singer, Bean

coun¬

practical application of the
general
statement in our Ameri¬

Copies of the Offering Circular may be obtained from
the undersigned
only in States in wlucli the under•
signed is qualified to act as a dealer in securities and in

Offering Circular

many

governments

world

can

which the

welfare

share)

per

relationship

real and taken

proportions

That

pro¬

most

ventures in the ancient

new

policies

peo¬

places.

such

the

inc.

ples is taking on truly great
portions. It is voiced in the

have become

less

services

the

stronger

money

were

if
ef¬

have

Federal

aid

small

permanence.

tragic kidnapping and
four

them

budget

some

Eisenhower's

new-

take

non-essentials.

budget

proposes

grants in aid to the states on
top of the existing 53.
Unfortunately, Government does

not have the check

wasteful

and

its activities

inefficient

man¬

agement that business has in its
profit and loss statement.
Fulfilling Campaign Promises
The President has said he is not

going

his

promises

American

National

form.
to

welsh

the

1956

by a. bandit gang.
business in that lo¬

to, and the
proposes

new

murder in
to
men--p.oint

employees—and the wife of
of

one

Federal

For illustration, take the recent

does not need

people in the
Republican plat¬

But how about his promises

reduce

the1; national debt and
national tax rate by economy and
They ought never to have
efficiency in government? The only
been there—especially the Ameri¬
way to restore a sound fiscal pol¬
no

cation.

can

woman.

icy
The uproar

resulted

that tragedy aroused

the resignation of t

Minister

America

persistent
tion

and

determined,

consistent

monstrous

our

reduc¬
national

Iran, who was debt. The place to start is with
great friend of t're western de¬ the Federal budget now
pending
The
repercussion ; of before the Congress.
j
the tragic affairs of
a
non-com
The Secretary of the Treasury's I
officer, in Korea, in Japan and i i
responsibility and integrity to his
Gre'ce is spreading all over the
job compelled him to voice his
a

mocracies.

world.

We have had similar

ex¬

periences in Germany. There have
lived

few

dead"

peoples

that

they

with

did

"soul

ressn<

not

being told too much and too long
what to

foreign country

grave

fears of the gargantuan size
Federal
budget. Having

the

expressed his official opinion thai
with

clashed
the

rest

President's

the

Cabinet,

and]

too

Too much and

long of that is

signed.

re.

The questions I raise about our

the Presidential

It is

levels.

like)

divorced
Hollywood stars an¬
program—is it bal¬
nouncing that they are still the |
gious segregation is also true in anced; is it being spent wastebest of friends.
Pakistan—the 11 Arabian nations fully; is it being placed where it
The Federal
budget must be I
and Israel. South Africa has bitter will do the most good for peace.
I
Where it is sliced is of
racial problems.
firmly believe it
should
be sliced.

problems

100,000 SHARES

Price

home and abroad.

differences between

Moslems

-The

Attributes

(2)

Prime

Peonies, who for centuries, have
only known power and ruthless
willingness to wield it are finding

unexpected

Issue

CLASS

However, it must be remembered
that a large part of the program
is a matter of our national de¬

their national' defense

dav

This

three

much

ficiently unified and organized

great mistake

They had

The extent that the Eisenhower

before

International

censure

United Nations charter.

victory

Landon

Hon.

Institute of

contributions

the

Administration's
a

will

could have

for

ignore the rising tide of legitimate business, to farmers, emersed in
criticism against our foreign aid bureaucratic red tape to
tne ex¬

Iran of two American

practically all the nations of the
world standing on the principles

the peoples

was

fact that

the

Criticisms

Empire—as Russia is doing—and
receiving contributions, we are
now continuing to make enormous

ter

are
*

the Kansas

Communism, alike, and for free¬
dom of the individual.,; -. i
'
>

war

rael

Egypt—has succeeded in reducing
widespread

admirals and generals.
the evidence points

defense

Three

regarding

the

France

the

program—great
accomplishments now—
needs revision in the light of ex¬

Offers

concerned

invasion

not only

V "
'
;
|
colonies
were
revealed
did
course, Secretary of Treas¬
time in the life of mankind, col¬ nist
as bad as too little and too late.
;
ury Humphrey's resignation was
lective security stopped two ma¬ wp start our programs of military
I was the first Republican leader
aid.
expressed in polite terms of hav¬
jor powers' invasion of a smaller
to speak vigorously in support of
New
ideas
and
new
ing nothing to do with his vigor-1
nhilosopMes
and weaker country.
the
Turko-Grecian
loan,. saying ous statement on the menace of I
are
stirring masses of heretofore
It is true, that was not due so
at the time it would: have to be
somewhat
the President's budget to our ria-f
lethargic
peonies
the
much to the strength and the or¬
world over.
There is much soul expanded to include the Pacific. I tional security.
■
ganization of the^United Nations,
remember how bitterly that policy
.<
The President's acceptance of
as
it was to the position of the searching and wrestling going on was
fought by the left-wingers in
today in America with such prob¬
Mr. Humphrey's resignation was
United States and Russia.
lems as segregation. India has not this country. -They screamed it
Nevertheless, it was not two only her c\a s t e or segregation would mean war With Russia. I expressed in the same diplomatic j
language. That is the way political
major powers acting in collusion problems —
especially
regarding strongly supported the Marshall
policy differences, are settled at
*
'
'
against two other major powers. the "untouchables"—but also bit¬ Plan.
Eight months ago—for the first

Israel's

this fallout from the H-bomb
but
the
continuing;' fallout between

military strength and eco¬
also on a re¬
fense.
'
alistic altered concept of the true
(3) The mistakes and waste by
meaning of world leadership and
government's responsibility to hu¬ administering and planning
through inexperienced personnel
manity.
-•/.
We have used that great strength —especially waste.
To ignore these points of legiti¬
to make enormous contributions
mate criticism is to jeopardize the
against the tyranny of Prussian
militarism—Nazism—Fascism and future of the program both at

War

small states alike."

and

out¬
lined iri those six points—to the
Suez controversy and the Britainand

is not only based primarily

its

Point

der

contrast—is building on the Eisen¬
hower doctrine of giving military

Sea—when

in¬

general association of nations un¬

sia—including slaves.

and

the

ment.

that's the role of Communist Rus¬

Pax

right to choose their

That's

the first

title

in line with America's

ing slaves—in
the

whose

termination."

trade—includ¬

Russia.

Points

and

money

in which

world

for

the

terests

far-

readjustment of all

claims

influence

population
con¬
higher health standards — higher
cerned must have equal weight
production and living standardswith the claims of the government

con¬

quered

1—"Open

colonial

enormous

international affairs.

nomic strength—but

of the disarmament conference.

coun¬

and

peace

covenants
openly arrived at." While there
are problems associated with that,
it fits our policy with all nations,
even in the preliminary discussion

and

between

consequences.

Point

ing

America's

Woodrow Wilson's Points

military

economic

Both

nations

free

better understand¬

national

peoples. That, that
tent that their benefits are
has broad and deep influence In program.
clogged
the conduct of public affairs. His¬
(1) Its size. Trying to do too and their costs are inpiliased.
I
According to the Hoover Report
tory is full of the effect of per¬ much too quickly. That, of course,
sonal likes and dislikes—of na¬ is characteristic of all American the Federal Government is
spend¬
tional sentiment on both internal
ing money for a lot of enterprises
undertakings.

boomerang and that

the

reaching

periods.

om e

contribute to

policies and acts.

Pax Romana and Pax Britannia

strength

our

have the coordinated
pian
defense demanas

our

its

and

there must consider domestic public reaction
to its

are

believe the whole

was a

I perience.

tariffs.

negotiated

and

can we

—money—goods—services—arts
sciences—travel—students all

as an

and Marshall Plan programs,

education in U. S. S. R. has served

reciprocal trade

good start on a sound
a peaceable world.
With his permission, I mentioned
our
discussion to the reporters
when I left the White House.
I

that it

foundation for

believe that freedom of exchange

original supporter of Point Four
offers three points of criticism
of our foreign aid program in the hope they will be corrected
so as not to jeopardize the future of the program both at home
and abroad. Proposes shifting grants to loans, calling a halt
to the foreign aid program, fulfillment of the 1956 Presidential
promises to reduce debt and taxes by economy and efficiency,
and there be no weakening by the free countries of their
military and economic strength. Expresses the conviction that
speaking

Mr. Landon,

progress

freer trade in our

United States in 1936

have
towards

policy 100%,

sizable

made

M. LANDON*

trade

free

Former Governor of Kansas

Republican Nominee for President of the

establish¬

and

equality of trade con¬
ditions among all nations."
>
While we have not followed that

Foi the World Peace
By HONORABLE ALFRED

all

removal

barriers

economic

America's Influence

Financial Chronicle.

(794)

point

gift program.

last visit with

come

four

thinking of it

but

temporary

—

policies

agreed

with

Calls for

definite—
to

Britain

the

and

Mr.

Roosevelt

Halt

I think it is time to start

national
attack

halt to

calling

tions, if the national Government|
credit is to be maintained.

foreign aid program.
indefinitely on the

Cites Soviet Failures

present scale is fraught with dan¬

Any objective translation

our

Its continuance

gerous consequences to

the United

States.

Communist patter

The present size of
debt,

the

local,

state

national

thd

their

agricultural productionl
great ternbid
strength of the United injustices were done in the namei

rate

and

threat to the

our

of the

must reach

plans have
not worked out for either indusH
that

conclusion

our

taxation—

national

—

trial

and admissions that

revolution

States. Any weakening of the eco¬
nomic
strength
of
the
Unit'd

tion

perate and persistent attempts
weaken
America's influence

Communist

the

growing rift between
States will be of disastrous conse¬ the people and the party
Pmlj
quences to the free world.
legeci class not only in tneir co r
We have a patchwork act de¬ onies
but in Russia and Cnini .
signed to provide for the unifica¬ The Soviet has failed in its etc.
of

our

commands.

essential
where

navy and air
do not know of any

army,
I

have

national

man

where

eral

staff

Without

function

government

done

adequate job as we
organization of our

joint chiefs of staff

prime importance to our
security.
The
principal

understanding, of cooperation and must be confined to our foreign
mutual
expenses-—al¬
respect.
Outright grants aid and military
are
made in the atmosphere of though economies can be effected
there.
condescension.
Major economies must be
made in other Government func¬

international

France.
I

shifted from gifts to loans; Loans
are
made in the atmosphere of

for

contrast

aid

to be known

President Roosevelt

was

colonial

me—

foreign

such

have
armed

defense.

and

that,

must
a

have

developing friction

peace

the

free

the

split. Khrushchev's

forces

have
chair¬
a

gen¬

the

Near

in.. 1
foreign pone
suffered a a s

countries

tween

Easf

astrous defeat. The sheer
of

the

shocked

staff.

shchev

cannot

have

chief

in¬

unity of the three services—now
wasting the public's money and
manpower

and

There

Communists
the

this

the old Communist

that

their

Ju'Uta

Hung

ideology

Prete^tf(rJ

D ge i

for conquering the «
by'bitter rivalries—nor than their H-bomb. He must i
weapon

.
.v

world. K_
week slyly feu
whole

Number 56G6

18G

Volume

The Commercial and Financial

...

Chronicle

(795)

perfected new methods
A rising tide of public objecwashing.
tions is evident the world over to

they have
of brain

All that does not mean a change

ducing the rest of the world to
Russian or Chinese colonies by

further atomic and hydrogen bomb
tests./, ■' /:,V^> v;
Scientific opinion on the required limitations of these tests to

force.

avoid

Soviet's objectives of

the

re-

•

Public opinion here

munist dictators feel compelled to
reshuffle their tactics — tempo-

opinion

public

colonies

their

home,

their

and

loss

war cannot be ruled out

public respect and prestige abroad.
basic

The

thinking

Lenin

error

Marx

and

teaching

believed

They

and

could

taught that

established

by seizing complete control of a
country—liquidating ;the existing
middle class—and
entire

that

lief

bringing

generation in the

new

came

Communism.

the

murder

—

scale

known in the world's

losers

—

neutrality"—or

their

voices

i.'

for that

■

Education As
I
a

submit

that

Boomerang

the

...Tir

of the

masses

bigger the middle class a country,
develops—and that is growing in
Russia—I

submit

government
reaction

the

n„,of

consider

must

at.i home

to- its

now

Brady Garvin Partners
,

again it is

once

just

about .nailed

down

jsia

and

press,

their

; the-

colonies.

radio,

punishable

The

slave camps, to listen to any outside radio. Broadcasting, from the

tree countries
The

ridiculed
Even
was

Kaiser

and

claimed

cism

Russian.

I ter corn

| shchev

producing bet-

was

hybrid corn

importing

seed from America..

vision

drastic

Communistic

demands.

were

Kremlin,
of

sia

will

center

the scattering over Rus-

this

new

means some

privileged

believing

becomes

mean

that

clear

decides
another

check to
All

that

opinion

although
and
111

local

centralized tyranny.

adds

and.

still

public

existent

today,

always
;

lighting

•wwld-;

If
on

the

Russ

securities

Republic Inv. Corp.

Lee

LEVITTOWN,
Investors

that

generates

the

true

stead

Turnpike

side

of the

;

Telephone and Telegraph

Twenty-Three Year 5!4% Debentures
August 1, 1957

uSS
he

Hitler—or

Due

August 1, 1930

Price 102.387% and accrued interest

eco-

The

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

r\cc

halsey, stuart & co.

228

Commerce

a. c. allyn

Street,

Waller, Jr. in charge,

and

company

-INCORPORATED

inc.

bear, stearns & co.

dick &

merle-smith

equitable securities corporation

hallgarten

.1 believe v that

of Edmund

Nolan.

Co., Inc. has opened

office

the.

...

744

Broad

management

american

schoellkopf, hutton
*

securities corporation

baxter

PARK,

wertheim

pomeroy, inc.

& co.

a. g. becker

'
-

bache & co.

INCORPORATED

co.
*

baker, weeks & co.

•

blair & co.

company

r. s. dickson

& company

INCORPORATED

gregory

riter & co.

reynolds & CO.

& sons

Maurice -!J.

courts & co.

ball, burge & kraus

N. Y.—Leigh

I
S.

Back is engaging in a "securities'
business
from
offices at- 65-09
name

under

Leigh Back Opens
REGO

shearson, hammill & co.
.

co.

l. f. rothschild & co.

hutzler

hayden, stone & co.

branch

Street

•,

•feat ;>:ai'Itei'ia^i-.'the Ninety-ninth Street under the firm J
H-Bomb • itself,

bros. &,

shields &, company

Ferris,

free i

a
working and
public,opinion .can be as

ladenburg, thalmann & co.

A. M. Kidder Branch

w'.:

engage

securities business.

any
Dated

of Leigh S. Babk Co.

shelby

cullom

davis & co.

McDonnell & co.

August 21, 1957.

♦

h. hentz &. co.

wm. e. pollock & co.f inc.

van

has

been

formed with offices at 3000 Hemp¬

$90,000,000

;

The Pacific

NEWARK, N. J.—A. M. Kidder

and;

time

Y.—Republic

Corporation

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

■

public

Reaction to Atomic Bombs
Sizable

Herbert

•

to control
than heretofore

incipient

securities
Kenwood.

salomon

subject

important,

grows.

A...

_■

un-

whether

Company, Inc. have opened

fnent

that

Leonard

The

d^moc-

Valley "Investing Company, I c.
has^opened. a branch oilice at 3
Market Street under the manage-

Russia and its colonies. What's

opinion

business.

This announcement is not

Mohawk Valley Branch

and

government

punishment,

Stock

■

strong local government is always
a

with John E.

the

time

—

engaging in

weakening of central-

should

growth

office

class

significance1' Thls 1S 'of pC>lltlcal
That

American

KTNGSPORT, Tenn.—McCarley;

the

lNew McCarley Uriice

jng decentralized by the Soviet.
control

City,

■

freer'om to Communist slavery
even to the point of no return.

peacetime
to
meet

Attempting
demands, the management
industry and agriculture is be-

While

York

offices

early

military defenses—and their

these
of

ONEIDA, N. Y.

principal of the firm.

tur^production'xan'sii^in^'iimg Corai.c„ strength-if they orefer
war, let alone mounting

Leonard Inslee Opens

•;

Moses—rtheie must be no weaken,n.« ,bv thf *ree countries of their

and planning.
&
Neither the Russian
industrial production nor agricul-

into

wants

re-

thinking

Hitler

Khrushchev

The economy

of Russia lias forced

and

decision

Now Khru-

than Russia.

the

racies are decadent and will not
figM under any circumstances,
Uritil tie 11 m the Kremlins

agricultural scientist
punished by Stalin for saying
an-

that America

New

with

easy
conquests — they may
be deluded by their fanati-

still

either derided and

were

Building to engage in

structure before they widen further—or lured as Napoleon—the

music, arts and sciences of

the world

115

Broadway,

name

of Goade Investment Associates.

FRANCISCO, Calif.—Div¬

formed

gains-—check the cracks beginning
to
appear
in
their
monolithic

was "jammed" by
the Soviet's electronic instruments.

rities business from offices at 1305

Straight Path under the firm

su-

11. in the Kremlin
be,: discussing whether to
their great territorial

must

the

engaging in

man.'in

consolidate

was an

sentence

WYANDANCH, N. Y.—Charles
Goady is engaging in a secu¬

idend Security Company has been

became

partners in Brady, Garvin & Co.,

Today, the

literature,
offense

all

| were controlled. It

SAN

Exchange.

a
horrifying attempt to mold the ^ premacy in the Kremlin.
While
thinking and the beliefs of masses he could still slip, the chances of
of
people like the Communists his doing so are
becoming more
have attempted in China, in Rus- and more
remote..

Loughlin

~ / members

his

Tower-

Form Dividend Sec.

.On Aug. 1 John R. O'Neill and

M-argaret

Hitler—

one

the '•

mam in

and

Franklin

Khrushchev,, who, apparently has

known such

never

ISLAND, N. Y.—Alfred
conducting a securities

business from offices

Kaiser

Avenue

Campbell-

Forms Goade Inv. Assoc.

Inslee

dnS

the

securities business from offices at
1576
Broadway, New York

the

..V,

case

policies

*5e£
tl0n got ;d0Wnn to
one

any

public

Fifth

Road.

Cass

arro-

J1® *5 55°?
their defeat and deearly and easy vic-

and acts.

Mankind has

fanaticism

i^enT a.

„

Soviet—and the

175
name

Cass Franklin Opens

;

-Law, Inc., advertising agency; Joe Cox, CBS Radio spot sales; and
Larry Butner, time buyer, Albert Frank-Guenther Law.
The
program starts Monday, Sept. 2.

of the stu-

cupidity —the

erfTr.e+uV0I7.

of the proud-

one

of the

boasts

Napoleons-—the>^isers the Hit-

country becomes—and education

est

^55?

the

gance—or

literate

,v-

.^+al a
pidity —the

wood

f0r sponsorship of a business news program on WCBS Radio at
6:40-6:45. p.m., Monday through Friday.
WCBS Radio General
Manager, Sam J. Slate, is seated at the right Standing left to
right are Cliff McCall, account executive, Albert Frank-Guenther

cent dream

freedom, equity
M
and. justice.

Alfred Engel Opens
GRAND

firm with 35 offices coast to coast and members of the New York
Stock Exchange- looks over the final details of a 52-week contract

of any kind with
dropoing—-is an irides-

iri/ protest

Sal-

Markey.

r^ Ash^Iy Thorndike (seated left), partner in charge of adver¬
tising for Harris, Upham & Co., nationwide investment brokerage

modern

•
\ '."I
• •••
F?,. aiT never the desire or
against, inhumanity and in behalfgovernments.

raised

Weinstein^
Nathan

City.

Hunearvialfd Poland^but H_Bombs
matter neutrality

onlv in
in Hungaiy and Poland, but
only
in Russia itself. Youth at
any time
and in any country have always

and

^ should be obvious that

War"

is■■stirred- bv the students

SS"nucIear

offices

Engel

history, the

Louis

are

under the firm

But itr lias taken two world
one lesser , one to dram-*
the.-fac.t
that all-including
neutrals
are

slave

and

City,

business.

Campbell Markey is en¬
in. a securities
business

gaging
from

Persua~ r

revolt against the heartless Soviet
tvrannv

Edna

,,Nbrman Angell, in The-.Great >
Jl^ton3 published in 191.3, ex- v

heretofore

never

York

securities

business from offices "at

of Communism lias been punished

torture

New

Opens Inv. Office

can

tllat question is.

be-

Irving Sussman
zinger.

long

Kremlin

Avenue,

Partners

the

Jlese bomb tests—as important

est deviation from that basic tenet

Despite.the'faqt that the slight-

camps on a

ton

engage

were

came

capitalism and all good

man

Investment Co. - has- been
formed with offices at. 480
Lexing¬

Program

That is the belief that there can from be no victor in a modern war is •
from at Jeast Penetrating the inertia of
peoples and theirgovernments.,V-.

allv democracies

decadent;'that all evil

onc

News

start, it. And don't overlook the
fact, that most wars have been
started by one man. However, IV
believe there is something more'
SiSnificant and vital in the background of, public thinking than

becoming evident.
Communism

and

Form Block Investment
Block

and

free world at least is aroused by
the discussion and warnings in recent months. Although the necessity of preparing for a nuclear

rarily at least—by fear of incipient

all

present
divided,

future Tife is

that the Com-

That does mean

menacing

Harris, UpHam & Co. Sponsors Business

hirsch & co.

alstyne, noel &. co.

Financial Chronicle

The Commercial and
12

Now, it turns out, it is not
able to "get the money it
wants even on that basis.
,

being

From

Washington

'•V There
_

Ahead

after

mittee'

question

serious

whether

now

really

were

that

world,

the

:uj{

men,

Co.

could

We have the \

dent'

Eisen¬

hower/ Secre¬
Dulles

ford

old machinery
of every kind, that I have ever
read.
To get rid of their stuff
these ■private.;- enterprisers
who
wish; the, government would get
but of their business and leaye

and

Rad¬

Admiral

impor¬

tuning t h

Congress that
if
they don't

Carlislp Bargeron

of the world is threatened.
that

headlines

the

read

You

happy.

subordinated debentures due Aug.r

1, 1977; and 112,000 shares of comstock (par $1). / V'j

moii

/The

and

amount

"Now

ship.

over

tribes who
of

hard

they

of this the average

come

what

be
that
these
talking about the

may

after

ing

American who

going into the merits
subject, the fact that the

icountry is completely Ted..up;
foreign

aid

"mail which
receive.

offices.

evidenced, by

members
have

letters

Congress

personally seen
many
members'

They

on
the

will

get

letter

jfrom a constituent asking for a
jjob and such a letter will invaiiend

quit

with

"throwing1

request that
away

lhqney

abroad."
the

best

there has been

paign
the

will

natural

line

gas

North

owned

gas'

and

distribution
ri

dams.

resentment

The

the

knowledge

organized

this-direction.

cam¬

Rather!

campaign' has been organized

that

Admjnistvation

was

froble

systems,

systems
* new

gas

which,

to¬

the

concocted

Capohart
put

Indiana,

The

loan

basis." The Senator's idea all along

later step
a

t'his'

that

was

nation

would*

sooner

failed' to

bblig'atiohs could hardly
another

for

loan;/

meet
come

ed
a

was

the only

aid

bill

Con¬

This advertisement is neither

an offer to sell nor a solicitation
of
offer to hay any of these securities.
The offering is made
only by the Prospectus.
■

...

Cooperatives

publicly yesterday

15i 0

tapes,

tion tape

and

detection
The

well

consists of two stranded

The

Hartford Electric Light Co.

198/

ment

seven

private

place¬

institutional

pur¬

The debentures cannot be

refunded with securities having a
cost less than the interest cost of
debentures

and will mature March 3.

curred

until

Proceeds of

used

the

bank

repay

after

connection

five

issue

will

loans

with

plant

auditions which for the year 1957
are estimated
at $13,164,000/ The

$33,000,000 Of
debentures due Sent. 3; to

company is presently installing tin
additional generating unit at its

the^e

will

redeem the

repay short-term borrowings
for lending operations.

and

the

balance next year; Upon
of the new financing

completion
(SppcitU to Tut; Financial Chronicle)

ANGELES, Calif.—Donald

Gettemy and Harvey Sterman

have

become
&

Co.,

affiliated

6399

the company's long-term debt will

account

Miller

49.4%,?,of

connected
&

Co.,

650

with

South

Spring Street.

the

new

Danbury

completion

has
is

of next year.

tain

about

floor

commenced

300,000
and

space

which is

one

makers

square

will

the

of the world's

pencils, will
plant from its

new

feet

8417 Beverly Boulevard.

Wm. H.
39 S. La Salle St.
„

Chicago 3, III.

Phone Financial 6-2363

LOS ANGELES, Calif.—Merl K.
Deena has become connected with

William
.

formerly with Coombs & Co.

modern

five-year renewal.

14,000

and

loot

square

used by
Engineering

will

shop

PerkinrElmer for its

Optical Division., Some 50 of

join

will

Perkin-Elmer and the balance will
remain

Elmer

Witoling. ; Perkin-

w.ith.

-also

employs

walk

1,000
the Nor-

some

workers in five plants in
area.

Completion of The Burndy Cor¬
poration's

new

63.000

foot

square

plant in Milford is scheduled for
this fall at a total cost of about
$600,000.
overall

The
New

Also

of an

part

expansion

assets

Ind. of

Enthone,

and

Haven

subsidiary,

its

Comco, Inc., have been acquired
by American Smelting and Refin¬

largest

move

present

mately
founded

million

$1.5

American

m e

11 i

stock of

Enthone,
manufactures

n g.

1939,

metal finishing chemicals, electro¬
plating equipment and other prod¬
ucts.

The

and

plant,

of bee

occupy

some

Enthone'

laboratories

feet of floor space.
A total of some 70 persons have

34,000

square

been employed at the
which

;

have

been

plant, all o
by

retained

American Smelting.

■

CHAS. W. SCRANTON &

CO.

ExcbitHe

CONNECTICUT
i/

•

••

^
,

•>

;v/

•

•
•
.w-; vj.

/>'

SECURITIES

New Haven

New York-REctor
Hartford
•

Douglas
Bradford, 639
Street.
Mr.'Deena

South 'Spl'ing
was

option for

Members New York Stock

(Special to The Financial Chronicle)

Tegtmeyer & Co.

bury under a five-year lease with
an

'W\

Joins W. D. Bradford

of
the

Primary Markets in

Jr. have joined the staff of

pany,

plant of II. WibUng Tool
Manufacturing Co. of Dan¬

and

ANGELES, Calif. —Sandy

Bennett-Gladgtone-Manning Com¬

and

include

G. Edmondson and John J. Good¬
man,

Co.

company's main plant, office head¬
quarters, and laboratoryf- Eagle,

(Special to The Financial Chronicle)

speculative securities.

$2.5

expected by April
The plant will con¬

are

Hollow

ing Co. in exchange for approxi¬
Construction

With Bennett Gladstone
LOS

the

;

million plant of Eagle Pencil

ANGELES, Calif.—Carl E.

become

Revel

about

with

C. Russell and Masami Tsurudome

have

for:

total capitalization.

Wilshire

Hansen, Keiichi K. Ishigami, Cecil

Corp. of Nor walk

$2.5
million
program
Burndy
has
recently
opened a new plant at Scarbor¬
Middleton Station at a total esti¬
ough, Canada.
The corporation
mated cost of
$18,000,000, of which presently
employs' some
1,500
$6,500,000 will be spent this year workers in 12 plants.
and

Jonathan Adds Two
;

LOS

These

in¬

tie

3%%

to rough

to;

years.

debentures

Perkin-Elmer

Series,1 due July Wibling's ^.employees

1957

hired lo¬

has leased and occupied the Sugar

machine

radioactive fluids.

will

./'/V-' V

metallic

the

1958.

operations

cally.
.

Danbury and the re¬
employees required

425

The

Interest is pay¬
able with the principal at matur¬
ity. They are dated Sept. 3, 1957,
per annum.

for

fiber and is particularly
useful for covering pipes carrying

ceramic

il/2%

(Special to The Financial Chronicle)

Copies of the Prospectus may be obtained from the undersigned only
in States in which the undersigned is
(pudified to act as a dealer in
securities and in which the Prospectus
may legally be distributed.

instrumenta¬

chasers.

Four With Revel Miller

Price—$5.05, per unit

can

of security dealers. ]
The debentures
are
being of¬
fered at paf and bear interest at
group

;

capital stock.

degree

insulation.

Each unit consisting of 1 share of $1 par value Class A
capital
stock and V2 share of $.01 par value Class B

temperatures up
Fahrenheit as in¬

wires covered with the reinforced

(Aug.

Boulevard.

SERVICES, INC.

for

wide

Jonathan

used

can

debentures,

55,000 Units

SUPER FOOD

transfer

maining

for

They are being sold by
their fiscal agent, John T. Knox,
with ..the assistance of a nation¬

chance, to get
through

high

fabric

ceramic

new

tures.

LOS

ISSUE—

this until this year they realiz¬

foreign

personal touch

location in New York City. Some
75 of the present employees will

temperature insulation. The fabric

has sold $15,000,000 cf'30-yc ar 5%

NEW

Banks

Manufacturing Co.,

21) $62,000,000 of six-months con¬
collateral trust deben¬

widely scattered representatives.

solidated

used

„'^The '.Aflmiipstration fought him
on

tp icost $3,059,000.

consolidated

its

Russell

strumentation

Proceeds from the sale of

the give-aways because
that

offered

ad¬
by Senator
that it be

"business-like/

on.. a

is-

present system,

Offer Bebaniures

proposition,

vocated for manv years

the

Cooperatives Banks

continuation

The

used for leak

of foreign aid at
iH$e .outset? ?Qf' this \ Congress1. 'Bo
a

130

Middleton, has recently introduced

for

selling

to First California's

presently

distribution

construction

f HI mated

realized

the following day, thus expediting the

express

trans¬

t1"1 or with extensions of and ad¬

ditions

the .foreign

meetings via air

forwarding of vital securities information with

Carolina,

the reconstruction of the

and

record¬

in California and Nevada,

mission

gram," the giving of money to the
in far away countries
build roads and power plants

the five BelL& Howell

proceeds of this financ¬
be applied to the con¬

hottentots

The

the

towns

merged with Carolina Nat¬

struction

Without

The net

On top

were.

six

ural..

to the hilt has be¬
increasingly annoyed over
he calls
"give-away pro¬

taxes

pays

pushing

they arenT

gas

made

are

Fifteen of the company's 34 offices

equipped with playback machines, then receive tapes of important

North Carolina. Piedmont is about

seeking the dignity

are

but

men,
as

propane-air

nationalism
the world, of the savage
advancing

terms

300

(lower right), copies
ers.

great global leader¬

our

At its San Francisco head¬

Montgomery Street, the investment'house records
underwriting messages, analytical information, and private inter¬
views-with-business executives.) After taping on the Ampex

quarters,

distribution, , through a whollyowned subsidiary, Piedmont Gas
They probably still talk in Co., a North Carolina company, a
in

communication system.

sales

novel

seven

The principal business of Caro¬

•Wind.

hbly

terest from Aug. 1, 1957.

crisis which'we have ap-. aid program' has been ■ building
proached, agree among themselves up a long time. This year it has
Apd Con¬
that they have
got to be stout reached a crescendo.
hearted and must keep a brave gress is listening to it. The pros¬
'face before the public.
But the pects are thai-alt of the alarums
fact is that the public has been sounded by the big brass will be
'alarmed on the question of foreign t f liUle avail.'If Mr, Fmenhowpr
as
much
as
$250 O'W.OOO
,aid up to the hilt and in this in¬ gets
stance, Messrs. Eisenhower, Dulles restored to his foreign aid bill he
[and Radford are talking to the will be lucky.

these

and

lina Natural Gas Co. has been the

all

dent and

They are priced
$164',per unit, plus accrued in¬

great

*bf

debentures

FRANCISCO, Calif.—Jack Egan, Executive Vice-Presi¬
Sales Manager of First California Company, shows off

SAN

principal

$50

of stock.

became

bonds,

leaders

offering is made iri units,
consisting of $100 principal

each

amount." of

gradually got rid of
their old stock and have lost in¬

laughing

mortgage. 6%

first

bonds,, 1957 series, due- Aug.: 1,
1982; $800,000 of 7% sinking fund

have

men

part
of
internationalist
editors
saying the Congress.has gone com¬
pletely crazy—then you. see pho¬
tographs of the "President, the
State Secretary and Admiral Rad¬
ford with Congressional leaders

all

Herz-

that these gentle¬

terest

are

suddenly

But it seems

being done, that these men
have: dropped
everything
else,
that Secretary Dulles was nurriect
back here from Europe because
the situation is so grave, you read
the scoldings of Congress on the

this is

and -they

cars,,

alone,

them

the

of the foreign aid funds

peace

$1,600,000

humanitarians and global minders.

restore at least' * '
some

street

old

State

tary

Martin

of the Carolina Natural Gas Corp.:

tacle of Presi¬

Cruttenden, Podesta &

Odess,

licly offering following securities

not

unless other nations pro¬
spered. It was the most interest¬
ing list of American manufac¬
turers; who had got caught with
obsolete products on their hands,
such
as
old steam locomotives,

current spec¬

and

berg, Inc. today (Aug. 22) is pub¬

prosper

war..

...

of investment bankers,

A group
headed by

spon¬

in the Eastern

saying we couldn't
alone, that we were neighbors

live

being no
constituents.

are

their

Securities Offered

com¬

newspapers,

brink

the

when

business

hard-boiled

CommunicaHon System

the

accuse

■'

1,000 \ industrialists,

sored full page ads

they would be
believed if

They

than

It began shortly

World War II

times in regard to inter¬
affairs that there is

many

national

need

110

Carolina Natural Gas

the other side.

responsible.

of the News

politicians have cried "wolf"

Our

1957

members of. Congress of being ir¬

By CARLISLE BARGERON

First California Installs New Sales

gress.
>

.Thursday, August

(796)

—-

JAckson

2-9377
7-2669

Teletype NH 194

Number 5666

186

Volume

The Commercial and Financial Chronicle

...

July,
and

1951,
in

served

News About Banks

and

Assistant

six

past

Executive

Vice-President.
career

Salina, Ivan., Mr. Harmon

tered

CAPITALIZATIONS

the

National Bank

ment

1948

National

Bank

checking

personal

with the
years and
has

accounts

their

monthly

state-

amounts

from

shown

verify "his

easily

his

balance.

•

(

market

land Trust Company of New York,

the

that

able

decided

bank

Common Trust Funds,

as
a
regular monthly
The
"Reconcil-Velope"

adopt

service.

count

Regular

will receive

last

directors
Bank, New

the

500,000.

number

Aug. 9.

exceeded

factory

response

similar

amount

scribed

the

sub¬

The

satis¬
offer of

very

the

Vice-Presi-

Assistant

appointed

assets

Because of Bank Act

make

plus

These,

New

York,

Aug.

Chair mad;

Mr.

served

has

was

announced

Harold

Helm,

This announcement is not am

Total

American

The

York elected

Trust

Co.,

who passed away July 25.

Cody.

appointed Vice-Chairpost.

in all departments since that time.

was

«js

The
New

Grace.

National

announced

York

election

retary

William

Bank

Aug. 21

O'Connell

offer to sell

his

conducted

or a

•

'•

•

fj«

1935,
1948

and
Mr.

the

Dated August

Due August i, 1982/

1957

The

Board

Trustees

The

New York, announced on Aug.

the following
Robert

ilnro

and

capacities

Mortgage

appointments:
P.

;

jfj ( *

.si:

s;:

t ..

sale

the

stock

new

National Bank of Albany Park in
'

Chicago,

to ViceMr. Morse entered the

President
1033

—

■

By "the

Morse,

capital

mon

111.,

Aug.'

effective

amount

Debenture and 7 shares of Common

thereto,

the date of such redemption or payment.

,ln ebruary (Num[,er of shares outstanding—
served in various 50 000 shares pal. value $i2.50.)

ha^
in the

Accounting and

Department.

Sep-

...

■

Price $164 Per

Assistant

Vice-President.

Newly

named Assistant VicePresidents are Charles H. Miller
and Karl A. Stad.

Mr. Miller and

Mr. Stad have been Deputy Comptrollers since July 1954.

Ralph
E.
Erb
was
promoted
Rom the office of Assistant Comptroller

that

Deputy

Comp-

troller.
Herbert

Losee

Chief

Snner-

The Prros pectus may
•

Trutt

http://fraser.stlouisfed.org/
Federal
Reserve Bank of St. Louis
I

Leon

Incorporated

Herbert J. Sims & Co.,

Harmon

has

been

tional Bank of Riverton, Wyo.
'

Mr.

Harmon

Bank

joined the First
of Riverton in

•,.» •• if;

•

August >22i >957;-1
t* *_** * v

..>v

•><

Incorporated

McCarley & Company, Inc.

Courts & Co.

Berney Perry & Company

Sellers, Doe & Bonham

Incorporated

Taylor, Rogers & Tracy

Inc.

Corporation
f

)'(• 0

Straus, Blosscr & McDowell

Inc.

''1,1

Odess, Martin & Herzhcrg

Clayton Securities

named President of the First Na-

National

this announcement is circulatedfrom such
legally offci life securities in such ■ State)o 'rr!' sc . .. i >
•

Inc.

Irvine T. Rice & Company

George Auslander, Chairman of
the Valley Stream National Bank
& Trust
Company, Valley Stream,
N- Y.,
announced the,,election of
Kenneth Regan as Executive

iA(
■r.Arv'i

Krensky & Co., Inc. '

Brodnax & Knight,

^&
*

•

Arthur M.

commercial loan division. He was

Cruttenden, Podesta & Co.

*
*
*
T. M. Palframan joined the
First National Bank of Miami,
Fla.
as
Vice-Preddent in the

•,

value

¥,

be obtained in any State in which

of the Underwriters as may
'

•""*

attaLed officer rank by a,f"
bcin^named an Assistant Comp-

1957;]
t'

f
V
t["om $10,96-,500 to $12,528,o00 by
e
ne,w st°ck' effective
A(ug'.2' '(Numberof shares outsta,nding-— l,252,8o0 shares, par

visor,

Unit

Plus accrued interest from Augukt .1,

1952, he was appointedThJ? common capital stock
Assistant Treasurer; in July 1954, the Manufacturers National Bank
tember

s.eeuritiesindvidcd

Until such date
separately.

transferable only as Units and not

in the Units will be

increased its com¬
stock from $500,000

$62g,0o0

Stock will be offered in Units;

principal amount First Mortgage Bond, $50 principal
Stock. The Units will he represented by
First Mortgage Bonds which will he issued directly to the purchasers of such Units and
which will bear an endorsement reciting in substance that the Debentures and shares of
Common Stock included in such' Units have been deposited with Harris Trust and
Savings Bank, Chicago, Illinois, as Depositary, and will be held by such Depositary until
February J, 1958, or if the First Mortgage Bonds are redeemed or otherwise paid prior
each Unit will consist of $100

shares, par value $20.)

Savings Bank of Brooklyn,

Mortgage Bonds, Debentures and Common

The First
L

(Number
27,500

Aug. 9.
outstanding

Dime

effective

stock

❖

Due August 1, 1977

Charles T.

i\i

1, VJS7

($1 Par Value)

si:

:|s

replace Carl Cordes, who retired.

112,000 Shares Common Stock

Mana¬

The Ridffefield National Bank,
MaurerRidsefield, N. J., increased its
Assistant Vice-President and Man- common
a* stock from $450,ager of the downtown office to
800 to $550,000 by the sale of new
elected

Sinking Fund Subordinated Debentures

Sec¬

The Central Savings Bank, New

York,

;

ssoo.ooo

Secretary in
Spineiii was

Board

R. F. Campcau Company

Robert Patterson & Co.r Inc. *

11
A

investment

own

Bonds, 1957 Scries

First M<>rt»a;>e 6
Dated August J,

formerly

Corporation

$uoo,ooo

elected Vice-President and also a
member

Cody

solicitation of an o ffer to buy these securities.
....

gers.

Vice-President.
O

in
In

1943.

Assistant

elected

was

management

Mr.

business in Laurel.

dent,

the

under

nue

lj:

Mr. Spineiii has been employed
by The Montclair Savings Bank
since June, 1918 and has served

man, a new

opened

succeed

Davis,
Jr.,
President
and
Director,
David H. G. Penny, former Preai-

Chairman and Theodore A.

Feible-

has

branch office at 518 Central Ave¬

share to the

Carolina Natural Gas

the late Mr. T. Philip Re.tinker,

New

Harvey L. Schwamm

Miss.—T.

Company

President

elected

was

man

Mr.

;i;>:

approximately

ings Bank, Montclair, N. J., held
on Aug. 13, Mr. Angeio J. Spineiii

»•

*
*
At a' meeting of * the Board of

Eeuacior.

;

The

Managers of The Montclair Sav-

Building.

MTV

banx's

the

se¬

offices

from

Company.

LAUREL,

per

New Feibleman Branch
•

and

Charles

formerly a partner in

wa^

offering is made only by the Prospectus,

The
'•

First-

the

Assistant 'Manager

handles

1950,

stock

common

Charles

—

business in Colombia, Panama and

since

Mich.

■

business

Carr &

stockholders

rency.

who

Patterson,

•

Opens

Ilaven

New

will

approved

•

was

American

Company to conduct

White

'-j

thePenobscot

to
stock dividend of 55,000

price of $37.50

small

f4».'

capi¬

shares.

Kometani

ha^^ formed

curities

subscription offering of
the remaining
55,000 shares of
common stock at the subscription

provisions,

mergCr. 'The name of

$160,000,000.

of Chemical Corn Exchange Bank,

authorized

was

the

by
a

the offer did nat include fractions
shares.

board

declare

1954, Mr. Ball said.

plan, must be
the
stockholders
and the Comptroller of tne Cur-

Division

dent of the International

number

i;y

directed

bank's

the

White

issue

ident,. Expiration date

was

White >

110,000 additional shares ($20 par
value) of bank stock which will
the

new

Director of the

authorized

scribed, it
was
announced
on
Aug. 14 by Gordon R. Ball, Pres¬

New Haven National Bank.

David W. T. Patterson has been

Hawaii,

Own Investment Go.

stockholders'

Directors

Board

the

Haven,J Conn., and the

bank

new

Bank

Hawaii,

President,

intention

:j:

DETROIT,

increase

now

the

Chas. P. White

outstanding from 165,000 to 275,009, and increase the bank's cap¬
ital stock from $3,300,000 to $5,'-

have

Security Bank, Honolulu, Hawaii.

2170.

nage

issued
matters

He is replacing Peter A. Lee, for¬
mer Executive Vice-President.

was

sub¬

held,

Peterson,

Katsumi

elected

issue of the

each

one, new

structure of 275,000

Dr.

offering
9

meeting, stockholders

Montreal,

the

recent

Honolulu,

share iff the

per

May

shareholders

will

for

The

New Haven Conn., have approved

plans for

"Chronicle"

the

this

in the

First National Bank & Trust Co.,.

(Canadian)

notice

given

:J:

offered

tal

the bank's paid-up cap¬

been

five

first of next

month.

inal

Mr.
Finkbiner,

Montreal,

May at $30

ratio

that

yearly dividend

$18,000,000, bringing the re¬
to $118,000,000.' The orig¬

Riverton,

si:

of any

bank

serve

shares of capital stock of

Bank

Canada,

it with their

after the

statements

statements
this
week.
checking :account,: cus-

monthly
tomers

their

with

customers

Na¬

First,

the

Pres*dene of

the

now

new

the

Investment Management Accounts,

mailed to special checking ac-

was

Ninety-nine percent of the 900,000

well as

Bank

❖

perience in Personal Trust, Pension
Funds1 and
Discretionary

The response was so favor-

plan.

First

the

These

the Bank of Hawaii to pay a $2.10

completion of the financing,

First National Bank of Laramie.

"Reconcil-Velope" i In the latter bank he held * the
three-month, period
to, position of Trust Investment Ofdepositor reaction to the ficcr. Mr. Mahood has wide ex-

measure

who

the

with

career

President

new

National

Mr. Mahood will

former Bank of the Manhattan
Company, and the Marine Mid-

banking

member

said

ital, bringing yt to $54,000,000, the
highest for any Canadian bank.
The rest account will be enlarged

Mortgage Loan De¬
in 1951 became a

and

Harmon succeeds R. W.

the

over

conducted

Bank

The
test

Lawyers Trust Company of New
York,
He also served with the

bank

current

staff

adding deposits and other credits
made after the close of the period,
the
customer
can
quickly and

the

Mr.

of¬

:(t

tional Bank of Riverton.

duties on Sept. 3.
Long associated-^ith
investment work,' Mr. MahoodL began

By
the

partment,

1954

presently

outstanding.

$9,000,000

be Trust Investment Officer for
fhe baiik^;and •take up his new

subtracting this
closing balance
the statement,Land by

outstanding.
total

that institution,

description ; and
unpaid checks .still

the

for

the

165,000

stock

will be presented for action at tne
next Board of Directors meeting.

added

ficer

and

the

common

issue of the Bank

new

Canada.

lending of¬

case

offering

post-war

head¬

holders

shares,
underwriting

Montreal is the largest

LJuly,
1949,"; Mr. ^Harmon
joined the Casper National Bank
Casper, Wyo.,

the

fering, the

Harold J. Marshall, President
of National Bank of Westchester,
New Rocliellc, N. Y., announced
on Aug. 14 the appointment of
Roland W. Mahood as Vice-President and Investment Officer for

A special column is pro-

ments.
vided

been

ment

Regan has
almost 20
a
Director

bank

since 1949;

specially designed envelope to be furnished With future monthly statements.
Copyrighted,
the
"ReconcilVelope" offers depositors -a distinct convenience in the reconcilethrough

Mr.

been

service for "all

consumer

new

Vice-President.

Bank

York on Aug* 20 launched

en¬

quartered in Denver, Colo.

National: City

First

The

■

Assistant

sold

headed by A. E. Ames &
Co.
Limited;
McLeod,
Young,
Weir & Company Limited; and
Grcenshields & Co. Incorporated.

Depart¬

Examiner,

unsubscribed

group

1946 with the Planter's State Bank

Bankers

and

REVISED

of New

will

years

Starting his banking

CONSOLIDATIONS
NEW BRANCHES
NEW OFFICERS, ETC.

number

Cashier,
has
Cashier, Vice-President
as

the

(797)

J-. '«
>'

The Commercial and, Financial

differential

the

The

Attorney, Lord, Day & Lord

Tax authority contends that equally harmful as the heaviness
of the tax burden is the growing public disrespect and resentment toward the law. Cites preferences with which present

|
i

"riddled."

statute is

Maintains large scale reform

should await

$3 to $4 billion revenue cut;
at which time the following steps should be taken:
(1) in¬
crease
allowable exemptions from $600 to $700, but only
against first $4,000 of taxable income; (2) reduce all brack¬
ets—upper more .proportionately—until a top of 60% on
$200,000 is reached; (3) eliminate the social exclusions and
Congress' willingness to accept

(4) cut corporate rates; (5) reduce gift and
duties; and (6) eliminate selective excise taxes, except

death

liquor, tobacco, and gasoline. Discusses, with

results

large

very

Congress s™

dations, corporate and individual provisions.

any

from wholly specious reasons. An
example of the latter is the allowance of percentage depletion on
The effective- gas, oil and other mineral deposits
ness
of our beyond the cost of the property.
tax systemde- .Referring specifically to oil and
p en d s to a .gas, I do not see how anyone can
very large ex- seriously believe that corporations

mind, the most urgent
item on the Congressional fiscal
policy agenda should be reform of
the

tax

structure.

(

on the
willingness of

tent

undert^e

nbt

subm it to

it;

and unless

take steps to

cut, at least three and preferably
dollars. At that time

because part of the remitted tax
would flow mtb consumption aiid

four billion

submit

—and

the

that

timing

not

depend

(1) Increase the allowable " ex- norm the moderating
emptions from $600 to $700 but ; emptions and^. the
allow all exemptions only against
this effect gradua

^standard ded^.c-

the first

resentment towards the tax

law, the

Harry J. Ritdick

riorate

seriously

down.

sys-

tem may detenot
break

eral

deposits,

too

much

hope that this intended but unjus-

titled subsidy will be taken away,
Probably the only practical
method of correcting the situation

not

will be by giving some equalizing
allowance to recipients of other
heavy.
forms of income; just as we solved
burden
the problem of equalizing the tax
being distributed fairly, but they burdens of married couples in the
will balk if the notion becomes so-called community property
widespread that .some are enjoy- states with married couples in the
ing privileges not available to the other states by adopting split inmany. More and more people are come.
Incidentally, split income
coming to
realize
that
persons
also solved the problem of equalwith equal incomes do not invari- izinS fhe tax burdens of married
ably pay equal taxes. To take a couples where one spouse supconcrete example, under the pres- P^ed the bulk of the family inent income tax law, an inventor of come with the burdens of couples,
toys may reap the financial re- where both spouses contributed
wards of his ingenuity at the fav- substantially,
the

merely that
extraordinarily
People will bear a huge
if they
believe it is
xxwv

burden

capital gain rate (i.e., he
tax on only half of such in-

pays

\ come and in no case may the tax

;!exceed

25%

thereof),

while

wnter of books for juveniles who

just

give

may
and

much

instruction

pleasure

children

re-

qui red to pay at the
of tax.

One

••writer

ordinary rates
hardly blame the

can

face

the

this

equal treatment he takes
tage of every avoidance

un-

if he cheats

even

the factor which

cation

for

serves

has

what

tacitlv,

justifi-

called

been

the "erosion of the tax base"

and

the gimmicks in the tax law which

grant certain
treatment
rates.

The

favorable tax

groups

the

upper

extremely high
reaches of the

income

oppor-

relatively insignificant amount of

brackets

tax

Yet

revenue.

trouble.

provide

they

(Many

the

cause

writers

have

little, he probably squares his conscience by re-

permissible

ilecting on the fact that

types of income and the allowance

unfairly favors
ft1™-

and

someone

Laws, have
if

they do

else

not,

over
sense

people

w.ill

I can

pointed

patentable

taxpayers whose minds

duce unpatentaole ideas.

good

any

ideas
pro-

Nor do I

for preferred
people whose in-

reason

tax treatment to

because

the

certain

deductions, most high
taxpayers — except those
who derive the bulk of their in¬

come

consist

that

exclusion

snecial

prefertaxpayers whose brain chil-

for

reason

out

bracket

come

over

see

law

sec

persuasive

ring
dren

the

make

tend to disregard them.

explicitly

ad van-

,.tunity,
intentional
or
unintentional, which the law allows; and
,

Whether

from

smaller

percentage

far

their

hi¬

hi tax than the rate schedule

would
it

services—pay

imply.2)

possible

If
to

we assume

transmute

that

ordi-

nary income into capital gain and
if the difference between the rate

applicable

capital

gains

and

fSiS'ir
property
as dis- that
applicable to ordinary income
tinguished from those
whose
is
high
66<7r-—as it i*
in-

stems from

come

personal effort,

By and large, taxpayers who
hent

better

are

property fare

given

under the

than those who

laws

„

riddled -with

are

~
1,1,uaiea vwtn
preferences similar to those I have
described; preferences and dis.

tinctions based not
economic

differences

discernible

but

mal variations and often
•Statement of Mr
Rudick
Joint Economic Committee,

for-

stemming
hnfmn

Subcommittee

c»

Fiscal

far

tax

law—the

much

greater

lar

Policy, U. S.

C.Vrw,

' 6

fitted,
the rates minimum
of tax were far
ranging from
of

J"axim"n)Jof 25%—so that the
the subsidy

was

lower—

11/2 % -to

tremendously

Cut

? See>

example,

their

to 87%

which are allowed as a deduction

job' if only by the-cost.-of getting
to work- Why a working taxpayer
should pay more tax than a nonworking one is beyond me. The
Present law provides an inccntive for anyone who receives his
f"u Pay even though he does not

in-

show up for work, to be sick and
siay home.
(b) Assuming

much

gradual increase in the rates and

the suggested

rate of 60%,

top

capital

favorable

are

gain treatment

corporation's

owners
of
certain
depreciable
property, (5) breeders of cattle
whose of effort as a result of the ex- alld other live stock, (6) owners
shareholders agree to be taxed 011 tremely high rates to have any of timber and coal, (7) transferors
'their proportionate shares of the* pronounced
effect
on
economic
certain oil payments, (8) owncorporation's
profits.
Assuming-activity—but because the persons ers of certain real property subrevision of the rates as proposed
in these brackets constitute to an divided for sale, (9) amounts reabove, the tax burden on small important extent the driving force ceived on the cancellation of a
corporations owned by less than of the economy. By this I mean lease- or distributors agreement,
wealthy stockholders
would
be that the individuals in this group and (10) owners of unharvested
materially reduced.
—at least those whose principal crops (now allowed under certain
(5) The rates of the transfer source of income is personal ef- conditions).
taxes (gift and death duties), par- 'fort—supply to a far greater deHere let me say that I am not
tieularly
the
higher
brackets, Sree than average the imagina- jn fav0r of completely abolishing
should be materially1 reduced but tion, industry and initiative which the favorable treatment of capital
the yield
of the tax should be are essential to the maintenance gains. The appropriate income tax
maintained
and
even
increased
°f a stable and growing economy, treatment
of
capital
gains has
At the

time

same

remit

completely the tax
closely-owned corporation

that there has

I do not believe

yet

any

been

slackening

sufficient

by tightening the structure of the

They

transfer taxes to prevent the very

could, would be prepared to start

yersial

problem.

significant
avoidance
presently possible.

ventuies and supply risk
capital; and if they are unable

eriities

srise

Except for the taxes on
liquor, tobacco and gasoline, elim-

accumulate capital out of their
earnings,

inate

—~—

which

cise

present

taxes

selective

which

ex-

experience and

general

produce
amount

excise

been

they

■

llate

sub-

represent

accrued ovei <»
and if tjie

time

s"oS'sl'ccm['inToVpvtinentire appreciation is taxed in the
is

evident

being supplied to

that
a

equity, capital is
growing extent by in-

investors

and

that

theratio of

Banking and Currency, Sen. Rep. No.
1280, 84th Cong., 1st Sess. 95, Table 4
(1955).
v

dollar,

Married Couples

Marginal

diffinomi-

but rather a

gain

have

period

investment to total investment is
declining.
Factors
Affecting
the Stock
Market, Report of the Senate Committee

long

stitutional

the value of the

the decline in the
dollar and (2) bethe fact that a capital

than the nominal rate because of the

4 it

revenue.

+v.~

(1)

reflection of
value of the
may

eral tax.

same

(1) Exemptions. In view of the
in

capital

gain

private

true

effective rate of local income taLxes will be

substitute

Detailed Proposals

decline

The chief

because

naj capital gain may not
a

prevented

are
,

vexing and contro-

most

cause

tqx which would

approximately the
of

if they

who,

have

now

nothing to support them except
fortuitous precedent and administrative

the ones

uew

(6)

the

are

Unmarried Individual

Average
Rate

Marginal
Rate

Average
Rate

of realization,

year
tax
h

will ordinarily
fu„n jf ,+he

lai§ei 10311 II
.been realized

the resuiiam

be very 1T1 ucII
increment had

UC
ratably

tovpd

311(1

pelTOfl.
The first source of difficulty cou (
be
overcome
by providing tna
anilUallV

tlig'tost

the holding

OVer

other

(or

basis) ot tn

property which produces a

caPd

adjusted to ret
the value of 1T10L

gain should be
changes

in
the

$16,000

30%

25%

47%

33%

during

'i^Federal^T^x'policy 9/or

28,000

the
me

52.000

averaging and I am not in la
of averaging as a general P10

sition

for

cause

fSS &SLfru
V*? Sl'bcomniittee on Tax Policy of the
84th
9? mm,ttee °" the Economic Report,

^^313,'"' Sessio"' N°v- 9.

76,000
T-f o

OO o

ooo

oo o

NOTE—The highest marginal rate is !)!%;

91
the highest average rate

is 81%.

second

secunu

holding

difficulty

overcome

two

would

could o

■

sy.steiTlv0I.

some

reasons:

tend

period.-

Blum,

r,ttedAti) this Sl,bcommittee by
a,ld published

sec

to exclude

reason

on incomes between $32,should no longer be extended to
and
$200,000
(for
married (1) recipients of "restricted" stock
couples), the point of diminishing options, (2) recipients of pensions
returns has probably been passed and
profit-sharing distributions
as to such taxpayers; not so much
(now allowed under certain cirbecause they quit work to loa£— cumstances),
(3) inventors, (4)

and eliminate

to 50%

Income
papers

compelling

imposed

preferential rate applicable to

Taxable

the

se?vSes?wiU

Davine

when rates from 50%

corporate

present

than

il has since become.

high bracket taxpayers, I

000

the

rate of 52%

the

ex-

by overwhelmingly popu-

amount of
less

consensus.

(4)

evamnin

low bracket as well

who is confined
to his home ordinarily incurs less
expense than one who is on the

^"fncome^

and

with

hoe-in

ai"»yway, a person

who derive virtuallv all of

™ taxes* and their living'exTo compensate for the re- penses—which inevitably increase
duction
in
rates, eliminate the
amount
special exclusions and deductions wf
|0G emaii to nermit the acand other preferential provisions cumulation of
significant amounts
(including the dividend credit) of capital. The result is that fewnow
given to certain taxpayers er ancj fewer individuals go into
except in the relatively few cases business for themselves — at least
where the privilege can clearly be businesses
where
a
substantial
justified by offsetting savings in am0unt of
capital
is
required,
trouble

certain

traordinary m e d l c a 1 expenses

aver-1

familiar with

Anvone

P^i™me

resented than if

1 At the time (1926) percentage depleheyond investment was first per-

it.

earn

tax

income

discrimination
and

nnvw

current

rates1

^ ^

(3)

present tax law

Laws Riddled
IVIUUHU Witli
tvuil ireieiences
Our

the

and dhe

($400,000 for married couples.)

taxable income.

"Erosion of the Tax Base"

levels

taxable

certain

ag|:-^

brackets being reduced;
more
proportionately
than
the
lower ones—until a top bracket of
60% is reached at, say, $200,000.

the first $25,000 of a

orable

for

remaining brackets—

administrative

minuscule^iMhe igick pay (it is now excluded to
^higher brackets— ranb^, ^^. n tho extent Gf $100 a week) from
^
The accompanying Table'gross
income- Apart from ; e^-

the upper

pense or

m e n

until it becomes,

$4,000 ot taxable income,

the

reduce

e.SSQ

r e a

^ect^e^-^whi^; affects

allow the current chargeoff ot in($8,000 for married couples filing
"tangible drilling costs.1 Because of joint returns.)
k
^long-established precedent and be¬
(2) Reduce .the tax on the first
cause of the large number of
$2,000 of taxable income to 18;%;
states with oil, gas and other min-

■

of taxpayers or certain
types, of income are too numerous
to list.
The following will servo
;:*as "illustrations: .-V;"■;
groups'

the present law. the ratio of total
tax to total net income, if we ig-%; >

system—I would do the

to the tax

nip in the bud
the burgeoning seed of
disrespect and

The provisions which give preferenbal

merely ^upon
budgetary or other fiscal considr :1Pk9-';axab1e income.,
erations but on the growing peril vfv (2) The Rate Structure.*/Under
should

ing for oil if we limit depletion to
investment, continuing, however,
to allow percentage depletion up
to that point 'and continuing to

taxpayers to

truly significant revenue

refer to some of the

(before. reduction;tby,:ex--preferential provisions^ which I
emptions). This would materially think should be repealed,
cut the levehue cost/of,.-increasing ,4^3) ^Provisions Which.Reduce
the exemption. Whatever the gross, the Tax Base or Give Other Prcfcost, the net cost wdulcb toe less crential Treatment,
come

lar«e-scale reform of the tax
until it is prepared to

Under the next head-

of ^against the first $4,0001 ($8^Q0rJ'Qr be as great.
married 7 couples) of.:taxable, in- ing, I shall

losses

individuals will, stop explor- •following simultaneously:

and

own or

otherwise 'Utilizing their ^ talents
fully. In either case, the economy

I believe that

Therefore

rpx/pnnp

recommen-

structure
To

under from striking out on their,

exemptions ...allowable

the

percentage.

...

deductions;

jluo

is the loser. Moreover, the, sever,need or justification for an addi- ity of the upper bracket rates
small as possible. We need not tional
exemption; for "taxpayers serves as justification for the inmake
a
foolish
fetish
of
tax with large incomes who are over creasing number of "relief" proequality and carry it to extremes age 65 and for wealthy blind per- visions which have been enacted
the tax law cannot redress all sons. The announced basis for the, to temper this severity.
If these
the injustice" of the
world. Wc additional exemptions allowed such "relief" provisions as well as the
have to balance equity against ad- taxpayers is that they have in- exclusion of certain items from
ministrative
cost
and
conven-creased living expenses. The prent- gross income and the allowance
ience. But, as I have said, if the ise is questionable.
But even it' of certain special deductions were
differential in tax burden is mini- it
were
correct," an elderly or eliminated, I believe that the remal or at least relatively small, blind taxpayer with $100,000 of duction of rates for high income
there will be le3s resentment and income
certainly does not need taxpayers would be. offset to a
less flouting of the law.
:
an extra exemption.. In fact,-since very large extent.
In any case,
Tf
ic
nrnhihlv imnraetirable to
exemptions presumably reflect an the income tax would be a fairer
rut
thp
rates
for UDoer bracket
estimate of the bare essentials of tax and even if some differentials
Lxnavers without at the same living costs, I see no need to ex- were retained, as they will have
tfme doing something for lo^r tend them to any but .the lowest to be because of administrative
hracket taxoavers- and to cut the
brackets. Accordingly,.,I would expediency or some other factor,
rate,forlower bracket taxpayers allow exemptions as an offset, only the disparity would at least not

Oi the Tax Structure

•

Thursday, Augus

...

pediency, let them at least be as

By HARRY J. RUDICK*

half

only

were

If we must thave the present law are for most taxdiscriminations, and we will have ; payers the lowest ever and should
to have some for the sake of ex - be increased. However, T see no
that

Cracially Needed Reform

)

Chronicle

(798)

first,
P1()(

Number 5666

186

Volume

The Commercial and Financial Chronicle

...

(799)

duced tax

imprudent. A deductible dollar
costs
only;." 43
cents
and
t^x-

tionary

orientea

collections in an infla¬
period and increased tax
collections in a deflationary pe¬
riod) and second, because uie ad¬
ministrative difficulties of a gen¬

averaging

eral

great

too

system

would

compensate

for

business judgment, is
inevitable
consequence
of

disparity.
cents,

wise

the

think

present

method

of one-half of a capital
gain is about as good an approxi¬
mation of tax equity as we can
income

much

capital

gain

this
dohar cost only 41}

frequently

makes

and

graduated

basis
or

donee

gardless

and

against

heir

what

receives

when

and

re¬

from

whom .6

(b)
and

integration

estate taxes in

fer

tax

the

same

that

the

tax

would

whether the owner gives
away
the
property
during" his
lifetime or at his death.?

two taxes

quiring

would

also

;KoIding

favor

far,

As previously indicated the
of

depletion

beyond

definition

store.

any

preferential

tfie

and

;

furthei^.;l dd not; believe that
action

would

stimulating the

way, but only as to future issues
f such
bonds,
At the present
for'1 the

tion

the

continued

interest

much

virtually

sal.

People expect and

sent

them.

ucts

taxed

welfare

do not

create

certain

general
enforcement

law

which

part

way

justify taxing them.
However, the
other, excise taxes, except
possibly

sttctr

that

certain

sur¬

automobiles
taxes

and

which

are

except

imposed

primarily for regulatory

quisitions

he financing cost of such
'Correlation
im-\ to
with the Income
prevent
such .[[subdivision.
Tax, A Joint Study pre¬
; i pared by an
rovements would be increased if:
Advisory Committee to the
think
the ; problem; can
be
ap¬ -Treasury
the
exemption is ; taken 4 away.
Department and by the Office
proached more effectively by hav¬ of ;>the Tax
Legislative Counsel, with the
Towever, in the long run, it is
ing, a single corporate rate and cooperation of the Division of Tax Re¬
ifficult to
,

justify the immunity;,
allowingmaterially reduces Federal tax

and

-evenue

thus

poration

prevents lower

than - might otherwise be
possible,
It
arouses
a
sense; of
inequity in taxpayers who cannot
ake advantage of the
immunity.
.

all

income their proportionate
shares of the corporation's profit,

mind, these factors certainjustify the higher borrowing
local

from

•

that is, as if the corporation
a

partnership, This will

(e)'

;

those

tockholder

that

who

are

governments;

ave

pay;;'

•

•-"earnings

profits"

or
*

invested

and

profit

sharing

plans

|°ut life insurance

[features

and

with investment

against

taxpayers

[who are not fortunate enough to
[he participants in pension plans.
(4) Corporation Taxes.
hot reduce

for

I would
the corporate rate ex¬
token percentage.
In

other words, I would like
almost
of

the

available

area

tax

deduction

to;;-go
to
individuals
rather than to corporations. I beheve
that
for
large
publiclyowned

corporations, the corpora¬
income tax has become imoeddcd in the
price
structure.
Management'is interested in how
tion

money will be available for
after taxes and
they

stockholders
will,

Puces
duce

far

at
a

they

levels
I

can,

which

desirable

shareholders.
or
closely

return

think

fix their

and

Passed

Mr,
s

high

the

Bureau

Government

1947).

easy

Internal

Printing

Rev¬

Office

ground

that

is,

Altred

corporate

(5)

might

Gift

and

needed

for

the Pacific Coast Stock

which

were

defense and

■

■■'

••

•

Street,

members

This

announcement

is neither

pur¬

With Harris, Upham

though
longer

(Special to The Financial Chronicle)

■

SAN

Miltoh

With the exception of the taxes

mentioned, I would like to see all
the excises
replaced with a

FRANCISCO,
G.

Butt

nected with

has

revenue, purposes.

To avoid

lapping

sales

'local

would impose

amiding,

Harris, Upham & Co.,

232
Montgomery Street. He was
formerly with Reynolds & Co.
*

for

over¬

taxes,

the tax at the

would

make

offer

to sell,

nor a

man¬

"value

Joins Holt & Collins
(Special to The Financial Chronicle)

SAN

;

Calif. —
Claude F. Jones has joined the
staff of Holt &

Collins, Russ Bldg.,

members

the

Stock

Pacific

Exchange.

Prospectus.

.
,

August 20, 1957

More-

has

that

CELOTEX CORPORATION
Common Stock
($1

there

ever,

are

taxes

that

the

might expect from

one

of rates.s There is not

scale

Price $31.50 per Share

minimizing
actual yield

the taxes is only a fraction

what

value)

available

many

of avoiding

means

these

par

Copies of the Prospectus may be obtained in any State in which this an¬
nouncement is
circulatedfrom only such of the underwriters as may legally
offer these securities in compliance with the securities laws
of such State.

the

mucn

sense

having extremely heavy
if only the extremely naive

rates

pay them.

By judicious management, very
large amounts can be transferred
to

one's

ment", of

heirs
any

without

gift

the

pay¬

estate tax. Un¬

fortunately; not all persons with
estates large enough to be in the
range of tax are

able to

take

situated

realistic
nues

this

case

levels

of the

and

avoidance

that
be

suggest
income,

the

more
ave¬

closed.

Harriman Ripley & Co.

the

Kidder, Peabody & Co.

Incorporated

Merrill

Lynch, Pierce, Fenner & Beane

Incorporated

Paine, Webber, Jackson & Curtis

Stone & Webster Securities Corporation

A. C. Allvn and Company

Incorporated

A. G. Becker Sc Co.

Central

Incorporated

Republic Company

Hemphill, Noyes & Co.

(Incorporated)

Laurence M. Marks & Co.

were

done, I think the yield
could be appreciably
increased.
Among the avoidance
of

Glore, Forgan & Co.

Eastman Dillon, Union Securities & Co.

advantage of the

possibilities.

in the

Hornblower & Weeks

F. S.

Moseley & Co.

Reynolds & Co., Inc.

tax

prevention
be studied

methods

that

Baker, Weeks & Co.

Julien Collins & Company

Lester, Ryons & Co.

McCormick & Co.

Kalman & Company, Inc.

should

are:

(a) The possibility of susbtitut-

The Milwaukee Company

un-

otherwise

150,000 Shares

5 The
to

estate

tax

rates

77% of the taxable

is reached at
range

from

range

estate.

$100,000. The gift
2%% to 57%%.

from

30%

rate

tax rates

Singer, Deane & Scribner

Stein Bros. & Boyce

FRANCISCO,

solicitation of offers to buy, any of these securities.

offering is made only by the

—

con¬

ufacturer's level and to avoid pyr¬

tax, the
estate and gift tax rates go
up to
quasi-confiscatory levels.
How¬

tax, the rates,be reduced to

tax

Calif;

become

general excise tax if it is
cluded that one
is
needed

The

New Issue-

Exchange.

items

even

—

vitally

war

u c

Co., 404

Montgomery

were

scarcity of material

exists.

FRANCISCO,: Calif.

deter

continue to be taxed
the

SAN

;

Melvin J. Gardner has been added
to the staff of J. Barth &

Nevertheless's

poses.

and

materials which

and

scarce

Many

added" the measure of tax.

any

Taxes.

Tisch

(Special to The Financial Chronicle)

of the income

case

even

otherwise not

which

Estate

in the

avoidance

n'.At a 52% (or 50%>
certain expenditures become

uctent

that

J. Barth Co. Adds :

the

originally taxed not

were

use

that

e.g.; watches

much for revenue

the

expedi¬

fact

taxed and it is

taxing them.

items,

luggage,

than

the

were -once

to go

the

profits), be allowed as
ordinary deduction rather than
a capital loss.

induce economic activity

r]';P might

rati

and

(U.

other

any
ency,

products

by such share¬
holders should, to the -extent of
their; investment (including re¬

pro¬

to consumers.

beneficial effects

that

their

a
component
of
that most of the burden
on

provide

for

owned corporations
corporate income tax has
gen-

borne

N. Y.

Walker

sustained

will

ply
become
st

further

unds

hould be made to pay some tax
n their
investment income.. The
'resent law discriminates
against
hose who cannot or do not take

shareholders would be tax free.
would

losses

Much

Company
Street, New York 5,

Wall

(f) The investment factor of
ife insurance should not
enjoy
omplete immunity; and pension

Advertising

The;'

hould be repealed.

cept

enue

were

mean

wealthy will pay a higher tax on
; their share .of the
corporate prof¬
immunity vfrom " tax its, while those who are in low
[(except as capital gain)1 of certain brackets will pay only a modest
ion-liquidating dividend distri- amount. Any dividends
paid by
utions • by
corporations
which such a corporation to the
electing
vould have to

sup¬

always rely

all appreciate

able

I'o my

osts / which

exempt

fcoi-

corporate income tax if the share¬
holders consent to report as tax¬

rates

closely^oiwned

any

re¬

principally, tschools.

can

e/o Fitzgerald &
Louis

prod¬

Tax, 1 Tax L. Rev. 25 (1945).
sureTt will he found extreme-,
; -T Fede ral Estate and Gift Taxes, A Pro¬
ly difficult, to draft workable laws posal for Integration and for

ALFRED F. TISCH, Chairman

univer¬

Moreover, the

and

problems

towards

and

Lou and

National

are

and

municipal bonds; because of the
jompellingneed for local;im-;
proVements,

growth

gasoline

vival .of small corporations. If the
reasons
like the taxes on
firearms and
corporate
rate
were
graduated
narcotics,
cannot
be
still further, large and medium
justified,011
size businesses would
simply: sub-,; - 6 Rudick, Whtot Alternative to the Es¬
tate and Git
Tax?
38 Cal. L.
divide themselves to obtain the
Rev. 150
(1950); Rudick, A Proposal for an
benefit o^ the lower rates, and I
Ac¬

exemp¬

state

being1' made
which
would
graduate the corporate tax still

convention

Committee

The taxes

tobacco and
.traditional and,,

•

annual

his handsome
support.

provisions,

liquor,

30%

$25,000

for

children,

payable.)
\; ;
(d) .Revision of the too liberal

(6). Excise Taxes.

the

survival of small businesses.
Yet proposals have been and still

nade

rate

contracted

tions not
privately administered.

small

rate,

first

page

of the now un¬
limited exemption -of transfers
to
private
foundations
as
distin¬
guished from
quasi-public institu¬

auto¬

again

plement.

.^(e). Limitation

has

half
our

are

gift tax exclusion

are

(d) The exemption; of income
investment- in state and mu¬
nicipal bonds should be taken

can

of"

small

many

•v
•

taxable income has not been par¬

rom

case

in¬

ticularly helpful to the formation

etc.J);i"

appealing

retail

applicable

present, such depletion i§ allowed
against;, even such virtually in¬
exhaustible deposits as clay, stone,

from

corporation thas
times' as large as

present

cost, of gas, oil and other mineral
deposits should be terminated. (At

ime,

guess

to have worked

seems

universal

mobile

,one?year,4 as compared to the.
present six months. f*i"■ f:'\];■ ■ V' *
•*;^
allowance

would

results

small, corporation;

least

(c)

no one

out

re¬

period .of

which

prices or lower dividends.
Much is heard about the
plight
of so-called small
corporations; So

capital gains y/ouid be 30 %
against the present maximum

of 25%.

income.

creased

tax on
as

and

sumption

provided
for. Themifqb the highest bracket
taxpayers, -the effective rate iof
now

Bureau,

children,

native computation

jobs

SECURITY TRADERS ASSOCIATION

Our good friend, Lou Walker
of National Quotation

der the

only one transfer tax is
payable;
whereas if A gives the
property
outright to his son who in turn
leaves 'property to his

the

NATIONAL

present law, if A gives his
promotion, researchproduct development and; property to his son for life, the
activities in turn generate remainder to his son's

sales

Notes

justed as I have suggested (with that the resulting stimulation of
a top bracket of 60%),it would be
economic activity more than com-r
possible to eliminate) the alter¬ pensateS for the reduction in con¬

is.

NSTA

of the gift
single trans¬

new

these

restricted than it now,
fates of tax. were ad¬

(c) The elimination of the dis¬
as high asr
parate treatment! of
transfers in
necessarily bad since
trust and outright
to stimulate such activ¬
transfers.-(Un¬

tends

ities

tax

rate of corporate tax
is not

ing

cumulative
each

do things and take
risks
perhaps
would
not
be

50 %

practicably work out for capital
gains," assuming, of course, that
definition

undertaken if the full dollar cost
were
incurred.
I
used
to think
that this was bad.
However, I
have come around to the view
that

requiring the inclusion in taxable

the

that
to

which

possible advantages.
I

undesirable economic effects (re¬

Stroud & Company
Incorporated

Coast

The
16

Financial Chronicle

Commercial and

Thursday, August 22,

...

(800)

•for. this

year willbe, somemisleading since the.
company is
spending much
more on plant and equipment.
But once these expenditures
are covered,; and
this should

1957

what C

THE MARKET... AND YOU
By WALLACE

STREETE

By ROGER M.

completed this year, earn¬
of 5:%c with¬ ings • could jump since the
out appealing to any buyers.
porary bottom when the ' in¬
company will have far more
dustrials worked to the 475
Attention on Neglected Issues plant space going into 1958. It
area this week and, more or
was
already listed in some
Some of the sections neg¬
<less in line with expectations
quarters as a 1958 dividenda
technical rally finally lected for many months were increase candidate.
Stocks

hit

least

£ tem¬

yields ih

steel industry leader maintains rising prices

costs,

Asserts

industry or union can alone stop
single industry sets America's

one company or

getting

showed up.
*

half

For

without

bit more attention
of the doldrums,

letup the list has been

sagging with little in the way
fof any recovery so, to an ex¬
tent, the rally was overdue.
When it did show, it was fair¬

of inflation;

course

wage

effect

pattern; and a cut in steel prices produces no discernible
on the cost of living.
Declares success of Steel Corpo¬

of its

because

understand it, the main

Now as I

The attrition
cut

the

was

tries
was

enough to

industrial

age

average

just

ifaack about two-thirds of the

the

at
no

Indus¬

Musical

Electric

Attrition Drastic

low

$2
currently
priced end dividend rate.

fireball but did

man¬

to stand its ground well
a shade below the 1957

;

listed

of this investigation is to
inquire into the warmed-over the¬
ory that "administered prices" in

.; ;•

was

too little and too late.

the

rail

average

along supinely with the
tions

the

senior

boost

went

both
gyra¬
than

the

dollar

or more

testing its February low.
Varying Oil Influences

makes

Oils had

varying conditions
while they went
along with the seesaws of the
average
pretty much, they
were more
likely to be mixed
at any ,one time. The "inter¬
national" .companies were de¬
pressed a bit by ominous de¬
velopments in Syria, and
to face and,

1956

thing

the

that much

to the picture

and make C. & O.

increase

candidate

for

company

some¬

candidate

for

year.

Well-Acting Automation
Stock
••

•

Robertshaw-Fulton Controls
is

another

case

.■

where

the

selling in the market has been

make

stock numbers less than 560,-

Airlines, ho strangers to the
new-lows lists, were far from

year

bright spot in the
normally poor,
first quarter earnings showed- i
no
pickup
in
the second;
quarter and denial of ah
emergency fare boost added
feeing

market.

The

recovery

could make

this

it volatile.

Better

❖

sit

increase,

have —I
suc¬

—

because

dis¬

the

implications inher¬
question itself, I should

has

pany

record of paying

out about two-thirds of

in " dividends

nomic

that

sure

ail

are

earn¬

oyer

the

example, I confess that I
have no idea just what an "admin¬
istered price" is.
Perhaps it is
merely the opposite of a "haphaz¬
ard price."
But whatever it is, I
gather that
have

some

the

who

one

But what

"concentrated in¬

are

dustries" and how "concentrated"
do

they have to be to qualify

potential villains in this cycle of
inflation?
Throughout the testi¬
mony before this committee, I note
the

almost

that

universal presumption

steel is

meaning of the term is Dr. Gar¬
diner

Means

who

So I would like to

invented

note, in

it.

pass¬

list of

industries

American

447

classfied by the Census Bureau,
and has shown what percentage of
as

the

sales

tries

each

indus¬

these

for

accounted

was

the

four largest

prpducersl
Thumbing through that list, I

should

understanding of the

find that 112 of these industries—
and

remember, 1 am talking about
industries, not just companies
of

these

industries

are

112

the statements he has

concentrated t^an "steelworks ancl

made to the committee about "ad¬

rolling mills." In fact, one-quarter

ing,

some of

prices"—about

are and

what

they are not.
Are administered
prices monop¬
olistic? Do they exist
only in the
absence of competition? In short
are they bad?
To

the

contrary. According to
Means, they lead "to greater
efficiency and higher standards of
living.
They are an essential
Dr.

corner

the neighborhood

drugstore,

newsstand,: br in
Macy's basement. Dr. Means savs:
'We could not have

our

big; effi¬

cient department stores
mid mail
order houses if
prices were not

administered."
Then

perhaps

administered

[This column is intended to re¬ prices are something new—some
flect the "behind the scene" inter¬ modern development in our econ¬
pretation from the nation's Capital omy?
and may or may not coincide with
Wrong again. Dr. Means says:

earnings in due
the "Chronicle's" own rieius.]
little incentive for vigorous course are also
anticipated for
market action. In fact, a cou¬
Burroughs in the office equip¬ McCormick Branch Opened
ple of dividend rates were in ment group where most of the
CULVER CITY, Calif.—McCorjeopardy unless better earn¬ interest has centered for long mack & Co. has
opened a branch
ings came along quickly, only on International Busi¬ office at 10756
Washington Boule¬
which was part of the reason ness Machines. The bare
fig¬ vard under the management of
some
of
the
lines
showed ures reported
by Burroughs Abraham Kaplon.

"Concentrated"

Industry?

jargon.

For

years.

re¬

Steel

before

a classic example of
"highlyrconcentrated" industry.
speaking the same language and And frankly, this puzzles me.
The Department of Commerce
have the same
understanding as to1
has prepared for this committee
the precise meaning of this eco¬

ent in the

at least

extra, possible. The com¬

Some estimates are that this
ings
year's results could double the
slightly better than
ported last year.

prices,

question

prices in "concen¬
responsible for

mists

000 shares

the

inflation?'

for

cessfully
but

while about

And

then is: Are

Learned

subterranean

**>■.

period.

blame

think

it;

-,w

trated industries"

and

Roger M. Blough

can

should just forget this
ord "administered"

and talk for

sup-

that

better dividend in time. ignored and it has been hold¬
part of our modern
economy.
American's current dividend ing not too far below its vear's
peak. The increasing reliance Without them, big, efficient indus¬
rate is also well covered by
try would find it almost impos¬
on
automation to offset ever
sible to operate."
anticipated earnings as it was
higher labor costs, plus its in¬
in the last couple of years,
"Administered Prices"
creasingly important partici¬
*
*
*
Everywhere, Including
pation in controls for aircrafts
Macy's Basement
•; Western Pacific is in good
and guided missiles give it a
Well, then, are administered
hints of more domestic pro¬
position to show superior double
appeal. Sales have prices a phenomenon which is pe¬
duction, including a raise in earnings this year over last,
been growing steadily with culiar to big businesses arid to
the allowable production in when
•highly concentrated" industries?
they dropped discourearnings following along and
Texas next month, indicated
Why, not at all, explains Dr.
agingly. The stock, as a result, a comfortable increase is an¬
Means. An administered
that the oversupply of the has been available this
price is
year
ticipated for this year again. merely an established price at
moment will persist. So there at a markdown of a
which something is offered "for
couple
Here, too, the projected earn¬
was hardly
sale. In other
anything to cheer dozen points under last year's
words, it is the price
ings
will
come
to
more
than
that you and I pay for
ahout for the large domestic
virtually
high, making it one of the de¬ double the dividend rate to
everything we buy, wherever we
flated issues around. The
operators.
; V* T
buy it—at the
❖

"Is Big
Business
to

theory
thoroughly,

ministered

'•

perhaps

that

posed

"that

they are
something new,

nor

confusing

pose

they

bad

lated

means:

dividend

better

showings. In
fact,
expectations are that
Reynolds this year will show
per-share profit covering the
dividend twice over, which

In the process, however, the
rail index came within a point
of

profits consistently and
are
being projected to

results

average.

able to

neither

have discussed

been

inflation.

for

Chesapeake & Ohio is an¬
other rail that has been doing

fully under¬
does he regard

something

Freely trans¬

from the February-July high despite ragged markets. well, holding, profits stable
It owns 96% of Capitol Rec¬
recovery which was enough of
despite higher .. costs. Now
ords; and the latter doubled
a
retreat
to
raise
serious
with the rate boost helping to
its profits in the 1956-57 fis¬
doubts
that- any important;
offset
the
higher5, costs,
cal year.
'
>
;
progress could be made with¬
C. &0.'s 1957 results are ex¬
out a more clearcut testing of
pected to run to double the
High-Earning Tobaccos
ithe 455-60 area which was
current $4 dividend rate. The
Tobacco shares have been
reached early this year.
...
increase in coal use has been
*!:
*
*
V
" unpopular
ever since the re¬ no
handicap to the largest
current
waves
of cancer
Rails were virtually friend¬
coal hauler in the rail section.
scares
started, making them
less, whatever elation that
Any improvement in its auto
the high return items in the
stemmed : from
the
freight
transportation, in which pic¬
list. Despite all the hubbub,
rate increase was well tem¬
ture: General
Motors
is
a
pered by the carriers' cry that however, both Reynolds and major customer, could add
have

them

event

business world, and since

are

sponsible

r e

way

American

industries"

so-called

the

all?"

can

stood.

"concentrated

econo

;

l'ects

should be done away with."
So since Dr. Means' prices
pre¬
vail
generally throughout the

its

extent

profits.

purpose

holder consideration than the

;v.

The

whole—so burdensome

financial resources—is directly dependent on the

its

ly vigorous, but without yet
least a dollar a share over the net after funds of around 2!£
changing anything basic or,
3-times
its
dividend re¬
tor that matter, doing much $2.34 earned in 1956 were be¬ to
for the com¬ quirement. This,.' obviously,
ito lift the heavy pall pf pes¬ ing-projected
1
leaves room for better stock¬
simism hanging over, the pany.
#
••
;v
Street.

ration's efforts to the nation as a

Interesting Rail Issues

Baltimore & Ohio is some¬
they hadn't
gone to any excessive lengths thing of an exception,in the
and in some cases improved
rails, hovering much closer to
fortunes seemed to be in sight. its 1957
peak than to its low.
Twentieth Century-Fox, for Some estimates of the 1957
one, has been showing better profit run as high as $12 a
results
and
earnings - of at share- before" funds, leaving

chiefly

weeks

dozen

the

because

are

data showing excess of rise of wage
and of price of services, over prices for manufacturing.

result, not cause. Cites

its

excess

States Steel Corporation

that industrial prices are responsible

Discussing the charge
for inflation,

BLOUGH*

the Board, United

Chairman of

Even

Adam

ministered
His

main

Smith's

prices
idea

administered prices
which
in

should

order

that

something
further

economic

ef-

the

Subcommittee

Anti-trust and

Monopoly of the Senate Committee on
the
Judiciary, Washington, Aug. 6, 1957.

con¬

So perhaps—in order to avoid
confusion—we'd better forget this

term "concentrated industries" for
a

moment

just ask ourselves

and

if industrial prices are
for inflation.

responsible

Rising Prices Are the Result, Not
the

Cause

Inflation

Rising prices do not
flation; they
flation.

in¬

cause

the result of in¬
knowing friend of

are
a

mine put it: "Price increases cause

inflation

Jike

rain."
In

streets cause

wet

r..

this

of the
anpeared

all

connection,

economists

have

who

here have emnhasized the fact
costs

other

and

wages

tricably linked

that

inex¬

are

and

prices-

with

of Yale
University, in the course of tris
testimony, has come forward with
Professor Richard Ruggles

factual

some

evidence

that can

hardly be ignored. [Ed. Note: See
cover page
for text of Professor
Ruggles' testimony.]

Addressing himself to the theory
that administered prices have en¬
abled producers to take advantage
of wage

increases by raising

even

more,

trial

producers

form

the

"For

says:

prices
indus¬

whole, this

argument

easily

shown to be not true."
He

then

turns

official

much

manufacturing
wages

ment's "Cost of

through

tn
faster tn

total: and

have also risen

productivity.
Coming next

shows,

U.S*

show tna
have rise
as prices l

about twice

'Opening statement of Mr. Blough be¬

fore

highly

centrated than steel.

known."

studied

their

this Census Bureau

day, ad¬

are

shown

tabulation—are

Government figures to
since 1951 wage costs

were

seems

of all of the industries in America
—as

to the
Living"

„n_

Gove.

careful anal}

Continued on page

Number 5666

186

Volume

The Commercial

...

and Financial Chronicle

(801)

peace

Investment and Business Advice

that

By ROGER W. BABSON

10.

««•

finance division of the In-* proved railroad

The

after assaying the

son

{

!U<

n» i

compared with

■i

could

war

start

"feel-in-my-bones"

something

fallout

unexpected

may

during the remaining months of 1957."

disarmament.

Russia's

best defense at the
present time is

causes

Commission that which existed during the
\
took another long step toward libWhat is really
1945-54 period used in computing
causing the ineralizing its regulation of the na- the average annual amount avail-* ilation buildup and how can it be
Ron's railroads-in authorizing the; able for fixed charges. It is now arrested? Among causes
suspected
Boston & Maine Railroad to offer completely dieselized, and before are tne unchecked wage demands
Commerce

terstate

any time happen. I especially
have in mind the fear of either

of the current inflation and how
Expects "severe and unprofitable competition

be halted.

can

another

Advice for investors and businessmen is
tendered by Mr. Bab-

Boston & Maine Railroad

collapse.

using the threat of fallout in try¬
ing to force disarmament.

debentures for its outstanding

the end of 1957 it will have completely m od ernized its freight

pre-

ferred $tock.
Under-the

proposed

plan the
B. & M,;plans to offer $105 of 50year income debentures for each
share of its. present $5 preferred
on a purely
voluntary basis. This
decision jby {file Commission, rethe

when

mist

such

an exchange.
T; i :
When the initial application was
filed on Oct. 31,1955, the road had*
•

planned to issue the debentures

pressing

result in sub-

operational

savings."

easy

accrued

1955.

This

amounted

$5.25 a.preferred share and
lieu

of
in

earned

was

preferred } dividends

1955.

subsequently
during 1956.

These

dividends

paid quarterly
V

were
-

Directors of the Boston & Maine
will

meet

details

for

ferred

stock

Sept. 25

the

authorized

discuss

exchange of

into

pre¬

debentures

the

Commission.

The program calls for the issuance
of

$28,461,510

271.062

debentures

for

outstanding preferred.

addition,

there

would

issued

$1,355,310 of debenture scrip.

the

probable

date

for

debentures likely will be
Jan. 1, 1958 to make the first in¬
new

terest

payment

due

May 1, 1959.
However, it might be noted pres¬
ent earnings are not covering full
interest and
The

sinking funds.

currently

preferred is cumulative to the

ex¬

earned, has

ing fund of V2%

contingent sink¬
year, is callable

100 and

convertible into

the

1.75

The new income deben¬

common.

ture

accrued dividends and

would

extent

bentures

be-cumulative

earned.

also

The

have

de¬

contingent

sinking fund of y2%

new

year

and

improve

■

sidered

the

light

creased

revenues

growing

and privileges" of the
mortgage and income

bonds.
Boston

Maine faces

major

sub¬

tion

the

economy in the territories

served

facts

implicit

applicant,
before

now

the

result

and

transaction

proposed
in

annual

applicant in

other

Consumma¬

us.

tax

•••«■

proportion
to the amount of interest
paid on
the

debentures, which

plied

be ap¬

can

supplementary to tax

?.s

sav¬

management of the

ho'ders looking toward

exten¬

~.t

Ration-

many -

say,-

meeting

future

ment maturities

and

u«ed

and

improve

financial

otb>rw,c,e
cant.

position:

tend

over¬

and

bo«°fit

will

appli¬

For the public, this means

strengthened
to- meet
the

the

carrier,

hotter

trapsndTtation'

pnblicV

able
neods

Tf'fhw
outstand¬

ing for the 50-year period and in¬
terest thereon is paid annuallv at

tax

current

rates,

the

face

condition^,

could

occiw

exchange would substantially
the

ex¬

principal amount of the

proposed issue.
increase

Furthermore, the

capitalization of $1,355,310 which will result from the
proposed exchange is a decided
improvement over the increase in

other

such shares into

stock

common

The

oldsters

end.

and needs,
figure of

longer
is

Upon
worker

too

with

the middle

the

are

for

abnormally in

this

falls the burden
The

solution

slowly. I therefore

that

reins;

labor

thev

must

the

tighter- direct government

trolsc for
the

all?

But

businessman

should

the

become

inflationary

lieve the full effects

felt

for

several

even

spiral,

need

not

months

over

bebe

come,

his

duties

investment

of the New

York

reversing its old decision, it

interesting

to note

the

Bonneville-on-the-Hill

"Applicant's
;

present

yet

Conner

°f

suah

n-s-vptint
;

Boston

there

hris

mi res.

Maine

have

opened

selling lower* than for

20 years.

This is ndt'a good

sign.

Stocks

many

commodities

are

not

holding

(Special to The Financial Chronicle)

ST.

LOUIS, Mo. — Samuel W.
been added to the
staff of Newhard, Cook & Co.,
Fourth and Olive, members of the

up.

Polk, Jr., has

slipping in
Investment sentiment and

price.

Newhard Cook Adds

are

reported earnings show up well New York and Midwest Stock
so far in July. I, however, believe Exchanges.
that readers will do well to take
profits and deposit the money 111
retail sales are ahead of totals for banks where they can get 3% to
J. T. Patterson Opens
last year at this time, The factory 4 Jfa awaiting a good break in the
John T. Patterson, Jr. is con¬
work week, though slightly longer stock market,
Despite

the

current

business

sentiment, production in June and
July about equaled the April and
May levels.
Employment is up.

at latest

the

Businessmen

report, falls short of that

period in 1956. The
increased number of hours worked

get

same

out

debt

should
and

ducting a securities business from
gradually
offices at 250 West Fifty-Seventh
for
Street, New York City, under the

prepare

and unprofitable comfirm name
petition
during
the
remaining
months of 1957. Either assured Planning.

very severe

pushed weekly earnings in manufacturing up about 80 cents in

Nelson

rot

been

The

Modern

vastly

im-

Fred

announcement

is neither

The

offer

sell

nor a

solicitation of

offer to buy

any

of these securities.

offering is made only by the Offering Circular.

NFW

representative.

90,000 Shares
M*rks

present

This

Cook
oUme

R^ad

for the future,

reflet fully the results
activities in
applicant's
F

Co.

H.—Proctor,

Wachinptrm
manage-

]vpnt, which assumed its duties in
19*5, has initiated
many activities

jJ'Hch
promise well
nut

RYE.

BROOKLYN,
Marks

business

0p°^s

Common Stock

Herbert

($.10 Par Value)

engaging in
from

Fifty-Fifth

offices

252

East

Street.

The Narda Microwave

Corporation

For Banks—Brokers—Dealers

The Narda Microwave Corporation
Stock

Common

Offering circular

William

Street,

4-6784

;

Teletype

may

1-2922

may

be obtained from such of the undersigned

legally offer these securities in this State.

Milton D. Blauner & Co.

New York 5, N. Y.

Incorporated

"Telephone WHitekafl

Price $ 3 per

Copies of the Offering Circular

request

Torpie & Saltzman
:

Boajht—SoW—Qinted

Corp.,

Argentine Mining Co. and
Consolidated Eureka Mining Co.

Proctor, Cook Office

follow¬

ing comment by tv>e Interstate
Commerce Commission:

Stock

Rico

sion of the
maturity.

with
com¬

„

Bonds are

frightened

Lake

He will aslo be financial adviser
to

Remaining 1957 Months

cort-

asso¬

Securities

Exchange.

increases,
^

both

the

and

con-

Salt

members

responsible

wage

un-

also

Mr. Handley will serve as
investment adviser to the partner¬
ship firm of J. A. Hogle & Co.,

Is it possible that the only solution

consum-

that

was

Chase

pany,

for the ultimate results. They, and
the politicians who fear them, will
surely cause a smash-up unless
they stop demanding constant

understand

and

the

addition

the

con¬

leaders hold

York

with

Corporation.

Stepped-up automation may be
the real answer—but this change
come

investment

department of the Hanover Bank
in
1930, Mr. Handley was em¬

ciated

vastly increased

past 27 years.

in New

of
the

the

Prior to joining the

ployed by the Cities Service Co.

relatively small

force

of output per worker—or in
decline
of
total
deman d.

Share Increasing

businessmen and

Salt

Laker, is pres¬
ently
Vice-

rate

rather

will

should

Com¬

native

bridled spending cannot help but
bit^nsify the inflationary threat,

ers

Invest-

pany.
'! 4 Mr. Handley,

life

adding

by the low birth rate of
the depressed
ss?d IS
1930's.

clude

Both

Hpgld
ixient

numbers

fidence.

for

of*20f9f0 which
°4<£
-tXd tV.-rSrht to" c-overt

1940.

our

dent] of the

new

non-producing segment to
population at one end; while
President of
the
high birth
rates
G. Kenneth Handley
following
the Ha novel*
World War II are creating another
Bank of New
big group of dependents at the York
City, having served the bank

quickly,
My pei'sonal poll of businessmen
gives indications of waning con-

Labor's

by James E.

Hogle, Presi¬

with

year,

iincement

our

about-

;*»:

large

savings

the proposed

problem lies in

pessimistic

million

per

with

compares

come

suddenly

one

resulting wants

production.

sumer'

of debentures remained

about

we see

span

finally

Should

Important Statistics to Remember

500,000

inflation may continue
p'cint where the turnover

have

U '■

many businesses or consumers be-

for other

will

purposes;

an¬

Thib

Gradual

eauip-

strengthen its immediate

all

heaw

a c-

cording to

ivorkers. shrunken

will

banking

tember,.

family formations

limit.

A prominent New York

officialr G. Kenneth Handley, will*

Utah, this Sep¬

all the

they have.

of
rn oney
reached
its

uptrend:

tinned heavy spending.

day,

i>,

the

Without these tonics neither pro
nor
have
prices
could

the

higher prices,
all of the foregoing suggests con-j

Certainly,

duction

are*

with out

debt, there could not have

HaniHey to
Join Hogle hiv. Co.

' Let us not forget certain basic
ingredients of our economy. To-

been the kind of
spending which
has led to the expansion and
produefion
seen
in
recent
years.

risen

utilities

»•

spiral, ;

.xm-iimers

G. K.

become
Vice-President
of::;; the
Gross national product has
passed
Investment ;,Company
in
the $430 billion mark. Even with1 Hogle
Salt Lake City,
due allowance for

ings from accelerated amortization

capitalization

grtood that the

;

business
Roger W. Babson

savings' r<w«rd

direct

ceed

"subordinate in all respects to

the

changes in
operations which have already
been
made, the promise of in¬

present first

stantial and permanent

callable at par and accrued in¬
terest. The new debentures would

| the rights

o r

willingness

assume

restrietio

ap-

".
Applicant's revised forecast
of future earnings does not
appear
to be unduly optimistic when con¬

through credit

reduce

and

expenses."

alone resulting from

are

further

operations

corporate

outstanding

tent

unnecessary

will

Because of the low level of 1957

earnings,

initiated

and

way., to
the in-;

.check

cation of electronic techniques to
applicant's accounting department,t which
it estimates, will result in
'additional annual savings of about

plicant's

The

1,11955, and to pay, on an $300,000 upon completion thereof,
exchange yearly in 1956, interest iOt^er programs also have been
to

activity, which had
lagging earlier in the year, is
picking up.; Chemicals; ; rubber;

money

policies.'

At-

of Jan.

average

year-to-year
$3 per week.

been

rnentV earlier

an
a

Construction

and

f.tempts to increase efficiency have
earlier
jp.rder of 1956, been made by the initiation in 1956
I. C." Q.'1 turned- down of a 3-year program for the
appli-

its

verses

stantial

labor

the,: .govern-

equipment. Steps have been taken
to improve the
physical condition
of the
roadbed, track, and struc¬
tures. which should

■

June over May to
$82.59". resulting in
gain of more than

Michael G. Kletz & Co.
i

Incorporated

Investors

O "

;

vV i f '*

!(>,

•!

■' '

Financial Chronicle

Commercial and-

The

v'JsJ

Thursday, August 22,

...

•

1957

(802)
Federal

Continued-from first:page j^, _,t

,n:--r

There

'a'

was

time "when'•

■»

"i i 1. :<■

1% A/\lwr

Vi /vn

was

;

its ^Executive'"'Committee
abolished^ ;thisf( Committee

has,/usually

met

three-week

can

\ve

rhucfi as possible' of barn-1
^nd free
Enterprise
«vtrl
44.
Ar>Vi' ' '

the tain
as
ii

whether

Bank Stocks

—

when

solve! the prhb- System is by no means perfect, i^ervals ..to direct, the 3lsale, and
lem, but'ho# best to deal With it. but experience prior to 1914 sug- .purchase, of. securities W t.h,e open
nder
our: form 'of
1
+
it nr ftonfiGtlliiTC mrirlrpf Tn nrantip^, . nil'

;

-u

This. Week

; i

Pacing

TOe Pioklems Wf Are

ARTHUR B. WALLACE ==

=r== By

Reserve- Bank

of
New
York, is a permanent member 0f
the Committee.
Since June,
1955

dispensable, in its present iorm, and participate ireely in ,the dishas the advantage of being able eussion, although only these who
draw upon the knowledge and,' are
members (of the Committee

nwr

«««/%

iril

Bankers Trust

d,;Bank of New Yorkn_ 10.8
Vi Chase ,Manhattan-11.4
Chemical Corn'Exch. 11.5
Empire Trust —.—- 10.0
*?{'<■ First Nat. City*-.____ 11.0
,

•

Guaranty

C'V

Hanover

to 1

to
to
to
to
6.0 to

could, well bring about
market

higher

combatting inflation. There arc
undeniably practical limitations of

prices for the stocks, and
markets would put the
1 +n
into a better'position to

considered

capital

nnnll'

cnnrih

timing and scope upon

hnth

tllPV

both, they'

the most effective weapons m
arsenal against this destructhat an increase tive invader.
In fact they are
bank enables it indispensable.
.
j
are
the

11.3 to 1
Manufacturers
12.5 to 1
J. P. Mojrgan & Cp.ili«i9.6 to 11
New Xdjck TrustJ_i;ih|8.5 t!d]t ;•

onrl

iiminrf

put out new stock.1
f'--'
I
Another concomitant factor to

Irving Trust

v; *..

,-r;.

_a__„

credit and, moneta y.
r

,i:

improyed available to the Govonui.ent iuBoar(, of Governol.s

banks

10.0 to 1

Bank

interrelated, and are the two par-.rying out
larger dividend disbursements amount apd ' time-tested.;,means policies.-(,

for

«•:

1
1
1
1.
1

Advisory Council
^"7"WTr~~ T~l

at c yiww;

juicy

yuuuies.

laiy

incureciiy,

9.7 to 1

'■»

The, FDIC head of " course was,
ine banks
ucujiys a
way
indirectly, giving
giving the
a way
out to ' improving ■ their-'position,

follows;

sinH-

rln^r»tnrc

vsJ-

hie:

The present'- status is as

prevail.

•

•.

Fjederal^.Advisory
BoanTof '°M
each
ip
Reseyve^Bajnk^for a: term of one

;t; .prov^aes, wjt a_
'

?°Xcted

■

_—

' '

„

The Federal Reserve ^ct also

bythe

-d

The Boarti,
know,'is composeci of:seven
" year. -.The Council is required by
bers appointed[by the-1 ^
}aw) i tojnefit ; in; .Washington at
and confirmed by trie S. a ,. least lour,,timep each year. It is
each for a term of 14 years, in authorized to confer directly with
appointing the members o
3 the Boards of Governors, respect^

lending capacity to
and with the

to increase its

record
expansion in industrial first tL~ B
0.borrowing corporation organization

borrower;

of the Federal Re-

...

agricultural,
industrial, and com- -^pard/;s jurisdiction.
mercial interests, as well as the
*,i;
;

■;

.b^

Judging Economic Trends
of

work

For
Qniw

this

from

omitted

re-

dividend

the major

System

^ ^
tu«b uawxvo xcung.
man" VnT 'a" Vice" Chairman for quixe!? a continuous study and
generally will tend to up their ■
_
pan and a vice vnairmarr rui zeroise ;o£ judgment-in order to
nav-outs
and
in some
Federal Reserve Structure •
terms of four yeais. .Some of th.6
aipi'f to the wav the eoonomv
is
Recaseg^ g0 to the shareholders for
The Federal Reserve Act of functions of the Board of Gov- )c trending and what Federal b;

comparative purposes pr6b-*
cjtpfpo Trult pould be

TTnitpri
-

the

economy,

some

generally
prosperous
parts of the economy

to avoia emier punuueu u.
"ui may. not fare: as well as others,
private domination of the money ;hshed biweekly at each Ftdmal credit" policy must, however, fit
supply,, created an :independent, Reserve Bank, subject to approval the'general • situation and not reinstitution which is an ingenious of the Board in Washmgton
flect unduly either the condition
blending of public and private to Participate, as members of.the f
tain industries experiencing
participation,in the System s op- Federal Open Marl et Committee poor business,'.or that of other
erations under the coordirihtion^Of m determining policies whereby fndustrieB enioying a boom Resthese'issues in many" minds.- .' a public -body-the - Federal- Re- the System influences the avail- "dSi
c3riction RiuWaks
other
securitiesj; about 37% in fe
W minds,
point.
" In_ 1956 and so far m
loans and discounts. Back in 1950 ^ihi^
,Ai^ the ^a^ungs-fJllution ne
This question of "independence" the purchase or sale of Govern1957 demand, pressures-en avail-*
Manufacturers "reported
47% .in'"0* be of grea -moment, for the
This que thoroughly debated ment Securities J,n,
-Q P-^h'^ able'resburces have been generally
securities; investments,'only 24% new funds could b&, put to pro- has
been
duetive!wo'rkiouickiv. An examnle throushoul

cause

^noxner;.aoo less naoov occasion ing

the banks would

normally

far*''the eurly 1930's some of
distribution of their assets was tliem, ;With no real need for addiconcerned
than thej^: are today, tional capital at all, led the way
A*^JvereX
TQ54'mid-vear Na- and' floated preferred stock and
tionaTatv rworted"bovrt 39%^of <*P«al Bote issues to temper the
assets V„
m ypZSnt
government; hnndl
bond? arai
and stigma that in those days attached

in'a

balance so

better

far

I V

-i_r.'

u.:-

_x»

inen

at a .time

sooa^ account

mid-yearLU

of loans ai the 1957

Chemical Corn

JVJUton Npcbemias Opens
BROOKLYN,

Empire Trust.•' 56
First National City_—
51'
51

Irving Trust

47..

Manufacturers Trust

;

F
-1 P in, n
Emil
Pollak Opens

here is 50%. And,
let it be borne in mind, that this
The average

■

to exercise its

Emil S. Pollak is engaging in a

177_17Q
__

„

1?.0.v.+

counseled

published

o w

book

values, the banks were hard put to
float

They therefore

capital.

new

securities- business.

-board of hine directors, of-whom

housing'construction

cost; of

increaSed anDreciablv even

far

that, is possible

Tts'hasir

nhiprtivp

one

-from a .small

by the Board of Governors

Je^^bette

n->an.

m-nnr

rrivaie citizens snare m
administering the System but, in
so
doing, they are acting in a

money,

fhUe Boarfo/Goveniorf'and'tho

Progress

has

officers

Banks are in a true sense public

been

Planning

formed

with

Corp.

offices

■

main-

Chairman'

6-J>bthese
anotnei
th? Deputy Chau
officer, director, employee,
None

three "mav

bank

The

interpretation

Economic

and

INSURANCE
STOCKS
Laird, Bisseil & Meeds
Stock

Exchange

Stock

Exchange

York

NEW YORK 5, N. Y.

Telephone: BArclay
Bell

7-3500

Teletype—NY 1-1248-49

(L. A. Gibbs, Manager Trading Dept.)

Specialists in

Bank Stocks

Kenya

the

Government

Colony and Uganda

Office:

2f?

Bishopsgate,

London,

E. C. 2.
West End
(London)
Branchi
13, St. James's Square, S. W. 1.
i

Branches

American

that

they
First

aopoint

Federal

the

President -and

Vice-Pr6sident.

review and

Subject

determination
u«Cu.imfluoii

to apPraise
Purposes

by
u> the
u/e

S^f"01"8'llley 6stablish

discount

Reserve

objective of the System m
always the same — to P1'0.11?0
The

The stock ef each Federal Re- monetary and-:credit conditio^
officia^sThe processes
of policy
- 7 ^bejxiernber that
will foster sustained
determination
are
surrounded, banks of its .district.
This stock, nomic growth together with sta
.

the

BANK

INDIA, LIMITED
Bankers
Head

Members

Perl°d °f broad acivani-t

even in a

Burma.

India,

Pakistan

Aden/Kenya,

Uganda. Zanzibar,
land

Authorized

Paid-Up
The

Bank

Capital

Tanganyika,

£4,562,500
£2,851,562
£3,104,687

conducts every

and

description o!
exchange business.

Trusteeships and Executorships
*

also

created
the

undertaken

Reserve

likened

nation's

credit

Svciom

trusteesh-'n

by Congress to

monetary

helping
of

the

trusteeship dedicated to
safeguard the integrity

currency.

the
continued
to

the

Confidence

economic

progress

of the

and

social

cellt
residual
■ ers; the latter as directed }o.P£
surplus
of the tecting those who depend TP^1
who
p? ,S
T
fhi^ TTni^ itl?3" belongs
saYin*s or ±lxep inc.°j^ Z fart,
,nt if hf nfid-tes/f ri'Smei11' rely upon pension right,. > h
s stockholders.
however, a realization oi.

Committee

the

heart

free

in-

stitujtions.

•

V-

^inseparable. rfpri4"s!abW

-T.he Fedei.'al °Pen Market Com- is essential to sustainable 8r()^l{s'

consists' according to law,
of the seven members of the Board
The Fprfpral Rqcop'ud !A«f
' " '' 5, 'governors, together with five
"Sheat
W inSentfi'V? lres"deniJ of the Federal Reserve

values

The

of the dolla[ •
thought ot
first pad nh?

the

Fedirn i

dolly-|g vital to Federal Open Market

preservation

sciahtion to the capital of the Re- be considered as concerned w
serve B&nk» dividends being fixed job opportunities for wage ea

admSe? tt?'.'6
interest
in

and

affairs-a

and Somali-

Fund

banking

may

the

Cevlon

Protectorate

Capital

Reserve

Brcadlv

value

may

terms.

MATIONAL

BANK

120 BROADWAY,

complicating

factor

...

New

and ean not be
b? TihSok
typical of the whole.

^%red

Members

nf' mnstruction ex-

tvnp<?

are not
"the" DenutV ailm?n
^Charr- that
Another

another

»n

Form Progress Planning

somewhat

has

so^e61^nonbanking bus™'U" ^ at ort abohve
Si
.other -three members are ap- S"^v^u-t takfr9a-count^ oi the

niggardly Broadway New York Citv to en
uciuway, iNevv xorK citj, to endividend pay-outs in order to re- gage in a securities business.
resorted

p0wers\ Hs.'basic Objective is; to or stockholder "of anv

recently many bank stocks were
be 1

nowers.

engage

Because until in

present being paidt

selling

prices

cur

those

above

rates

recent

mcreases

dividend

best_collective judg-

through the exercise of monetary

hoirwbhder'thaF Mt,

of FDIC in

Each Federal Reserve Bank-has

me^e'R^e&m'' is an' in
st™?e,ftol Government designed
interest,

e^opomjclhioom ' fefmf-V,41
'>1^'
f'l;1;iU|»J:T *' roritzbv Opens Office

So there "is

-J'

b^^1ve?S

■.

greatesti

Cook

;Federal Iiesetye Banks

foster and nrotect the nnhlin ItS^
^ gnty-beventh St.. to
to foster and protect the public : and

conditiohle^i^&^E^^M^^^- Yurk Cte:
history.

•

securit.es business from offices at

Rifitnrv

banking

reserve

LponlnfctiW'6u? St {fnk.,:Three.m0re -must not. be

Trust__'_

the

that

mean

Policies. It does mean that within -medium,, and

States

continue. to .'increase.- The

East 55th Street.'

Co.-___

New York Trust 1

United

rities. business from- offices at 357

Nechemias is. engaging

,54

_______

Hanover Bank

Government, That does not

of the

Chase Manhattan

J. P. Morgan &

independent-1.1,t -in- legislation.

JiX^^tentwithMtiTsSjctnle

Guaranty Trust

. i

should

,the management cam take
r^'rn'
'■'i
n
ko^ -1'■. andxaiuaBe or tne new nigne
Banv,.;?
tl?earinoiinoed*>
"ew higher Iff:
Bankets. Trhhtd
Trust^i--^ • l58%, k-Re'rest rates iust
Bank of New York.^_ ' 49
merest rates just announced.
;tK,,

to total assets:

£? 1I'r^ll 111 I (

•

indentuie that Banks. Four of these five

Pres-

Is if SSS
«• idents.
serve on a rotatin| basis;
thinks vfnfalmf
best.
The°rexisting
the fifth, the President
of
the

Inflation fosters maladjustn
In some periods these broad
call for encouraging credit e.xp

restraint
on the
The lattei
\%q^el at present, M

sion; in others, for
°rowth

wMl

credit

clearly the most critical

econon

Number 5666'... The Commercial

Volume, 136

problem now facing this country
is that of inflation, or put in tm;
of the man on the street, it
the rising cost of living.

terms

Current Problem of Inflation

The

This

problem is far different
the one that beset us dur¬

from

depressed' 1930's, and'left
indelible impression on outThe problem then

thinking.

drastic

one

widespread
of

with

unemployment,

and

men

was

deflation

material

both

resources.

problem
has
persisted
the years since World

Today's
through

It consists of

War II.

inflationary

price increases and the economic
imbalances that have resulted.:
This is the overriding problem
that

faces

the

Federal

today,
for
mounting prices and
System

and

savings,

mands
the

spiral

for

and

funds in

since

seeks

wages

financing.

demands

ales

Reserve

co-

Financial Chronicle"

modities to be bid

limited
is

one

all

words,
excess

because of

availability but
of

broad
our

resources.-

aggregate
of

these

rather

general

Taking the situation
as

individuals, corporatio

governments

proceed

their

capacity

borrowed

tive

plans, buttressed by
funds, they are in the
position of attempting to bid the
factors of production—land,
labor, and capital — away from

for

services

emphasis

efficient, more produc¬
equipment rather than
on

the

demand

rowed

funds.

When

borrowed

are

curtailed

resources

their

these

from

funds

others

who

own

expen¬

additional demand

generated.

for

bal¬

however, demands for funds
by those who have wanted to bor¬

rates

row

bound

are

in rates
down
money

mands,

but

meet

to spend in excess of
their current incomes have outrun

would

add

savings.
Those who have saved
by limiting their current expendi¬

bring

about

demands.

money

tures, and thus made funds avail¬
able, for lending, have still not
kept

pace

with the desire of gov¬

ernments, businesses, and individ¬
Just
sure

fests

rising

the

money

increase
such

demand

manifests

in the

and

wages

deficiency

relative
rowed

spend.

itself

prices,

order to

intense general pres¬
available resources mani¬

savings
for

bor¬

itself

price of credit.

circumstances,

rose1

could not

fuel

borrowed

have

created

ficiency

that

rates

and

tight

money.

can
on

de¬

full,
interest

mounting
If the gap

between

investment demands and available

savings should be filled by creat¬
ing additional bank money, the
spiral of inflation which tends
become

cumulative

and

self-per¬
be given further

petuating would
impetus. If the Federal Reserve
System were a party to that proc¬
it would

ess,

betray its

Conflicting Views
There
sion

much

of the

pressures.

flect

trust.
Causes

current

discus¬

origin of inflationarySome believe they re¬
of

recurrence

pulls, similar to

intrstng

demand-

those

present

the earlier postwar

period. Others
originate in a costpush engendered by administered
pricing policies and wage agree¬
believe

they

that

ments

violate

the

limits

exprmnt

tolerance set by advances in pro¬

ductivity.
These

distinctions

oversimplification
lem.

Inflation

present

the

interact

time with

over

flation

therefore, of
same

the attributes,
cost-push. At the

How your

time, demand

must always,
keep the soiral
Otherwise the marking

moving.

of prices

sector

one

words might be
.lw;
V

compressed into "shorthand" sound

the

economy would be offset by a re¬
duction of prices in other sectors.

There

much

said

the view, that contractual

has

be' sufficient

mu¬

other

spiral effect. In¬

alwavs

prices
each

upon

spch.

prob¬

process

which rising costs and

tually

for

waves

telephone transmission

for

other

arrangements
designed as shel¬
ters or hedges from inflation have
the effect of quickening its
tempo.

YOUR EAR IS OUR CUSTOMER.

The 5% rise in the cost of living
which we have experienced over
the

last

two

reflected
more

been

rapidly rising

cause

has

years

and

clauses

wage costs be¬

tracts

tend

Cost

quickening effect
tionary spiral.

the

same

inflationary spiral, there
demand

higher-priced goods
ket

and

thus

must be

take

off the

keep

the

One

possible

way to

method which Bell

voice from telephone
to

benefit.

the
mar¬

process

do this is by

transmission

a new

Telephone Laboratories scientists

infla¬

The spiral is
also, however, a
demand spiral.
At each point of
time in the development of the

sufficient

your

telephone with less equipment you're hound

con¬

the

speed

can

modern

plus

have

of cost of

many

contracts.

wage

Any time

made; by sounds

Actually, it's
off

method by which samples

are

workings of the spiral of
inflation are illustrated by the
economy of the moment. As has
been brought out at some of the
earlier

tee,

hearings of this

seeming
expected

are

now

paradox

faced

that

to continue to

though the specific

Commit¬
with

by telephone to

prices are
rise, even

capacity that impeded the growth
°f production
in 1956 have now
been
largely relieved, and invest¬
ment

productive facilities

sent

receiver that rebuilds the original
THIS IS THE SOUND "OR."

and other
consumer goods, as well
as
most
basic materials, are all

readily available—at
problem
eitic

longer

^ shortages
causing prices of

price. The

one

of spe-

bottlenecks

individual

done

even

with

the right show how this

can

short sound like "or."

idea, which could
more

sent

economical

are

only improved service but

of lines

well.

by fewer electrical signals. And

he sent

It's

over

recognize the particular sound.

putting further research into this

mean not
use

Vibrations

originate in puffs of air from the larynx when a word is
spoken. Electronic machines don't really need all these
vibrations

Our scientists

Chart shows how the oscillo¬

records vibrations of the sound "or."

Voices could he-

voices could

each wire.

exploring and developing like this that make

con¬

tinues at very high levels.
Houses,
automobiles, household appliances

over

telephone. To get these sounds from mouth to ear by
telephone as quickly and efficiently as possible is our
fundamental job.

are

sound.

the

bottlenecks in

patterns

snipped

speech sound—just enough to identify it—and

The two charts

Inflationary Spiral

wave

would ordinarily hear them

the

scope

The

sending speech, studies

as you

exploring. You might call it "electronic shorthand."

moving.

The

Bell Laboratories scientist

Dudley, who originated the "electronic short-

hand'' method of

probably

reflected

of the prevalence

living

Homer W.

com¬

telephone service the bargain it is.

THIS IS ELECTRONIC SHORTHAND OF THE SOUND "OR."

One

"pitch period" in three (as against all nine shown

in upper

Working together to bring people together
bell

telephone

system

chart) lias been selected for transmission. With

this system,

-three times

cally travel

over

into the total

the

same

many

voices could theoreti¬

pair of wires and be rebuilt

original sounds.

excess

though

newly

for this de¬

money

condition of so-called

here,

appreciably.

excess

the?e

substitute

savings

fea¬

demands

even

not be satisfied in

can

result

created

Continued

interest

sum¬

inflation, the

grown

bank

rates

special

funds

and

prices

interest

the

savings,

attempt

said,

increases

held down.

has

de¬

have

end,

faster,
be

financial

Any

rise

inflation

the current

that

these

further

important fact is

for

The

rise.

whatever

tures of

and

borrowing

this,

In- the

ever

mary,

(803)

might be temporarily held
by
creating
new
bank

ance,

for funds.
A consid¬
volume of expenditure is
financed at all times out of bor¬

Despite the

have

ditures,

uals to borrow

manpower.

erable

expressing itself particularly
prices

great

shortage of saving in, relation

is inevitably pushed upward. Re¬
cently, this general pressure has

rising

place

This generalized pressure on re¬
sources comes to a head in finan¬
cial
markets in the form of a

each other and in the process the
general level of costs and prices

rising

basic

compared with goods.

face

now

ployers. As a result, many cur¬
rent plans for further
expansion

expenditure

been

demand,

additional manpower required lias
to be bid away from other
em¬

and

is,

with

slack

when they seek " to
expand
activity by adding appreciably to
the number employed.
Often, the

whole,

lines of reduced

costs

existing

and

employers

many

availabilities

resources

some

employment

other

demand

aggregate

existence in

pre sure

prices.,

ing the!
an

and

only
page

ag-

Financial Chronicle

The Commercial and

•

(801)

Continued

from

•

■

ration
of

Interest

Higher

that

complex.

arssars steifs
'•SSViSHMRVK ftWUCW

draw

the

and

ment

their balances to lend at

to buy—will change in a way that

rates, thus reducing
their liquidity and increasing the
turnover
of the existing money
supply. In recent years, with the
large volume of Federal Govern¬

unwarranted

at
"-■at

inflation"

"creeping
r
0

Proiductivity—Key to Sustained
Prosperity

assumption

....

i;.

;

in-

•

supply—a process, sometimes referred, to as monetization of the

standard

spondiilgly?
.

Certainly,

is not

..j.:

sys-

nr»u«

11-ia

rvf

b.v>aimf

ment securities 0

holders

been

about the liebline

prices.

To the

accumulated

other

past "savings

actively,

main

high

not seem too startling
during the nast vea:

that

extent

cash

balances

relative

price rise
expected

plans.

potential borrowers

re-

To the extent that expen-

revised

are

deferred,

pressures

are

re-

duced.

national

The most

Real

economy.

incomes

in fact,

have gone up because the total
size of the pie, out of which
everybody receives his share, has

espouse

(

who

those

his

constructive result is

encouragement

volume

field,

own

hoot,

ji.

the

market

time.

the

relationship, between

investment

would be dangerously inflation- demands, and the availability of
ary under conditions that prevail savings, independently of monotoday.
In the present circum- .tary policies.. Interference with

for

better

and

Inflation?
\■
A. An inflationary spiral is ah
this view, rising prices would more efficient ways of
doing
then be the normal* expectation ! things.
Equally
important has
We must be clear in, viewing ways characterized by:
rvti/nnnUb-vn
/HofiniYlltoVl
f \ \
A
UAltt'i
and; "the Federal Reserve, accord- ' been the willingness to set aside a these relationships
to distinguish
(1) An interaction between ris¬
ingly would; no longer strive to * part of current income to provide cause from effect and not to coning costs and risihg prices;
keep the value of money stable the machines, tools, rand other-;,fuse them. It is sometimes said
and
;
but would simply try to temper equipment for further, progress, that rising interest rates, by in(2) an increase in over-all effec¬
the rate of depreciation. Business Both are essential if our standard creasing the costs \of doing busitive demand sufficient to
keep
and investment decisions would.... of living and material welfare are ness, lead to higher prices and
the spiral

be made in the light of this prospect.
•

to go

Such

advancing.

Fff

(

the

linnnvfant

mr»va

postpone their borrowing

inflationary

aver-

higher'inter-

costs, Together with "greater
difficulty {in. obtaining loans, is

ditures

—

(

According

est

income: and the uses made of new
and outstanding savings have a

creeping

available

Another-result of

that many

and

vol-

of consumption, investment
and saving and their relationships.
Monetary policies operate directly

ume

can

.prices tend, to rise,
but the reduced financialliquidity
eventually
exerts
restraint
on
borrowing and spending.

yise

t eie aie many
other than monetary policies
interest jates, that affect the

expenditures

and

resources

'moderate" rate',

to a

aging perhaps 2% a year. The idea
of prices rising 2%'in a'year may

influence

important

bribing

bond

R^qraart:
",;"|SS5PS
that
influences,

"This be"freld
has

investment,

these

institutions and i

restrain

permits the expansion of through the volume of bank credit
loans and investments and a com- and bank-created i money.
The
parable increase in the money volume of current saving out of

world, thus permitting our
of living to rise corre-

the

banking

tional funds for the

tern,

"Creeping Inflation"
The

sions.

Why have real wages in this
country risen to the highest levels

threatens balanced growth

-higher

the price of government bonds at
any given level unless it Stands
ready to buy all of the bonds
offered to it at that price.
This
pr0cess inevitably provides addi-

strive for efficiency no
governed business
deci-

longer

of investthe
other spending

decisions on what kinds of things

five

pattern
v
t

the
e

and
a
ia

aged
agea

specuencour-

are

lenders

projected expenditures
draw

commitments

lative

cash balances to finance

011

inflation is expected,

ther

borrowers

would-be

some

result

One

Government. f 01 ce

of the United States

impor-

markets

Rates

The response to higher interest
rates

became 'far

flation

Effects

pressures

VnnStSiHnveltmeiit

■

Thursday, August 22, 1957

in ^pney and capital in Hne-wrihvihe economy's ability
.without,'at the same^me, to produce;, investment goods. To
SdSe biher business deration, the contributing to'inflationary pies- maintain artificially low interest
buestidnofwhethbrThe operation sures.,-These suggestions .usually rates
Under * these
conditions,
|?uld increaselhe'prolit from ln. -involve/Federal Reserve support ;1,without ^introducing any other
riot!to increase' in veritdry, or rhake
^r engage'in

*page

prospect would work in-

calculable hardship.

'
Inflation

If monetary

does

thus contribute to

view is based upon

an inadequate
conception of the role of interest

f.*it 1.
1

not

simply take

rates in the economy, and upon

l'Aii

going.
As prices
generally keep rising, a larger
and larger volume of demand
(in dollar terms) is needed

mL!.
This

inflation.

/to sustain the

Volume Of

same

transactions

(in

y s

c a

terms).
As long as it persists, therefore,
an inflation will always show eviThus, as an element oi dence of both demand
pulls and
cost? interest rates are relatively cost pushes
with
their relative
small:
a
reflection of
of desmall; but
but as
as a
reflection
de-

the standard of

ing

living for

population

the

value

improved

savings^

a grow-

and

main-

tained.
Such

constructive

level would double every 35 years
and the value of the dollar would
be cut in half each generation,

thP8? who are dependent

Losses

life

upon

adaotations

Sntt

would

thus

inflicted

millions of people, pensiongovernment
government employees? all

made in time
in,
if made
'at
ere.
at the
the onset of
of ,ers>
inflationary pressures,.meed not/*who hav® *lxed incomes, lhcludbe large in"Order to restore bal-":11^
peopte-wfo? havfe part of their
ance
between
prospective
de- assets
in
savings accounts
and

mands and the

essential, how-

that the adjustment be made

ever,

Otherwise
iures

prospective

expendi-

will^ continue to exceed the
available

resources

and

the

pres¬
of excess demand will foster

sure
an

available

resources

to meet them, It is

inflationary spiral.

Inflation

Once such
lion

feed

has

are

lives

mo-

a
strong tendency to
itself.
If prices gen-

upon

erally

spiral is set in

(

expected to rise, incenand
to
lend
are
diminished and incentives to borsave

and

row

Consumers
be

spend
who

increased,

are

would

normally

savers

are encouraged to
postsaving and, instead, purchase
of which they are not in

pone

goods

immediate
lmmediate

likewise,

need.

plant and

new

spending
counts.
yurunto.

Businessmen.
Businessmen,

are encouraged

But,
iJUl,

to antic-

equipment.

increased

Thus,
both

because
uctctuse the
me

economy

ls.^??d?..°Peratin.gathi^.levels'
increases in
iurther
not

spending

matched
.

increases

the

are

by
-

corresponding
r
production.
Instead,

increased

snenHing

for

enorlc

on an-

nuities or pensions, or whose savjngs are in the form of bonds or mand
contracts. The great

insurance

of-*Those who ^operate
tfte,r own businesses or farms, or
stocks

common

real

pressures

interest

rates

fun<jSj

majority

own

3/^ to 5 /o.

sensitive.

markets

for

highly
expreviously

plained, rising interest rates result

primarily from an excess of borpvpn
thnsp who
have
eosfUdel
rowing demands
Over the avail
ngrg.m.n.
whprptw thpil.
—
hvmg agreements whereby then able supply of savings. Since these
or

steadily creeping

were

up.

eiency.^
finally,
ovc!l°^

addition

effects,

economic

these

should

„

not

1D /

BBcal structure. Money would no
Sei1Y,Vr,^f a ^tanaara ol

stated amount of dollars.

If peo-

sequentiy, tnose wpo wouia turn

feel that in-

inevitable, they will not

nave savings in tneir ola
age would tend to be the slick

in this form unless they are

and cleyei rather than the haid-

flation is
save

come to

paid a much higher interest pre-mium to compensate them for the
depreciation of their saved dollars.

It is for this

impossible, in
in
in

try

that it is

period oE demand

savings

nf
of

excess
excess

lower

reason

maintain
savings, tn
to maintain

interest

rates

through

experiencing a period of
generally
high
employment
in
which
wmcn investment
investment outlays
outlays remain
remain

highcause

their

result

-but

tears

people

incomes
could

infiotm,-.

only
din

an/i

spend

and

save

Inflation;
more

less,
.voa,

Mn°pV

the

rapid

creating

rose,

indexes

price

some

segments

gradually

of the

mumty apparently became

com-

intiation.

crease, in

While

itself,

able funds'to

finance

home^

prices

and

CQsts

tween

saving

faith

the

fairness

these

in-

ma.or
major
tionary

effort

earn

and

hard

work

will

appropriate economic

p/essmes

tempt

"ntwuiog,

c^lon^c inflation
There ■
is

no
—

ran

oonfinArl

i«

the

curtailing
do

some

interest

about under such

Pected, and 'thisrassuii[iption 'bband comes a part of everybody's ex-

pectations, keeping
level

under

control

rising price
becomes in-

"ablegate1
the
in

effect

dislocations

and

serious

the

price

rise

expectation
creases.
a

price

in-

inequities, other
effects

brings

still

occur

with
other

if
an

in-

Expectations clearly have

great intluenee

economic and

standard of living has made
unparalleled strides. In countries
that have had rapid or runaway

Creeping inflation is neither a
rational nor a realistic alternative

inflations

level.

our

this

Drocess

has become

painfully obvious that

remained

to what

ing to productivity.
ing of decisions on

doubt

happenIn the mak-

was

whether

to stability of the
'

general

price
1

"Pegging" the Market

It has been suggested, from time
to time, that the Federal Reserve
System
could
relieve
current

not

affeot

add to

agree¬

contracts,

ulative

take

hue

psychology

by effective demand
business

C. The tempo of
tween
tween

backed
pervades

decisions.

costs
costs

and
ana

consump-

interaction be¬
will
ww also

prices
prices

be affected by
the degree
to
v
to
,

...

wace

Increases

means

such

pro-

ways

net

exces-

•„

the

effect

same

the

factors

oils

direction,

many

influencing

tered prices and wages

nnTfr

ratPrnn HhP

accelerate

depending

outlaw

mwt

uowaH

acla to upward

it
nrL
rf
price pressures

mmnt

to finnnoo

?r
to

m^v
,may

thp

nHnoe
ho

price

upon

.5es 10rl 'the co.sl of
currently being produced cumstances.

vestment

costs
col¬

and vanadminis¬

sometimes

^L^ntinn^Whnl tSid" fo'sloW^p'SndhsoSetiifies

interest

prices

which
ad;Tllmstered
Pncfs.
a
'
,,onnatnraiiv
rates are,'prevalent in the ecou.
condition*.6my- The8e effects^iv>A#>tion.
are not alconditions, tney
The

increase

rates

hap¬

broke out in

(4) The degree to which a spec¬

®,?

period

th^vA

borrowed funds.

war

bargaining
cost
plus

ments,
etc.).

consumption

f-irt

somelncreLe fn

oeen
beeu

existing

(such

transfer rising costs or
into
rising prices and

greater

could

economy

activation

Korea).

min
infla-

this

investment

through

expansion

credit

(3) The widespread existence in
the
economy
of
escalators
which
act
automatically to

has been the at
into

in volume of

(cost of living clauses in

m?11.? than consumers have been

willing

tion

validity whatever
in the idea that any inflation, once
"

than

without

crowd

relaxed

demand

balances

lective

recent
recent

.,,

volume

re-

ward. That faith cannot be main7
j .—•—:*•
v

ot
of

controls

were

creation

pened when

re-

•

previously

direct
or

money

cash

and

cause
cause

The

and/or

Inflationary Pressures
A

the

movements,

particular cir-

Heine

level of

costs

fmthenming Crcdil
through new

cimn??eH

supplied ;thioUM'

.T,h.ey d() bank credit expansion or^ nl01iey.
investmentva JpP of a pady e
nntecCdent

tehd'to
new

keen

the

the end of the war).

excessive

than

Basic Factors in Recent

tive

down

new

consumption
and wouid
probably fail in its
purpose
of
stabilizing
interest

;ai.- in

^.e
01 0UJ instituLons ami mm to°vernment would
f
under lying
ISSM °! °Ur
political institutions rests Upon

when

broke

(2)

likely in-

any

overhang of pent-up
demand (such as ex¬

isted

and thiifty, Fundamental

high-

ways,
school
construction,
other community needs.

recon-

may cause serious

created
money

rapid

crease in interest rates. Such
attempt, moreover, would not

imrnTriw goods

(1) The release of

new money

much

characterized by:
situation is
is characterized
bv:

move the need for a fundamental
value lal long-term savings, uon- adjustment in the relation be-

aeeented

Iaoo

situation

a rise by
wouid iead

rise

would result from

position of savings. A large part
of the savings of the country is
mobilized in savings deposits and
similar claims that call for some
pie generally

"such

investment
as

are stimulated by inflation? under these circumstances
rising interest rates are an effect

Unfortunately, during the past

tween rising costs and rising
P.rices. will be speeded up ll the

est losers would be those unable Uuences tnat -accompany miiation
to protect themselves by escalator and impair reliance upon business of inflationary pressures, not a
clauses
or
other
offsets
against judgments and competitive eiii- cause.
Any attempt to prevent
prices that

course.

B. The tempo of interaction be-

demands

against

year,

fmtim^rnn^Tt/^^^11^ ^

are

estate,

loaJ"te™ b°nds, and other assets wages wiirbe ra«ed, cannot esof flxed dollar value. The heavi- Wc the
of speculative in-

Moreover the expectation of in¬
flation would fccu
iwuu..
react yjn
on
the cumcom-

Expectations of Continuing

amnnnt

spending that is being

•

Whatever ?ts aa

vill

untotXn tend*tofeedVon 'itseb and be

NurnbeT 5666

186

Volume

The Commercial and Financial Chronicle

...

(805)
to all agencies oLthe Government

the -.investing

accentuated - once

saving public come to think
of fuither inflation .as the. pcos-->■
and

pect.

The

Executive

suffers

inflation?,

/'v

A .monetary

time

same

since any ef¬
relax merely add to the
forces tending to keep the inflar
tion in motion.
tionary- pressures,

counter

from

living

and

thus

adjustment

tained

prosperity and

our

What More Can Be Done?

then,

How,
be

tion

we.

drive

and

is to be found in

answer

ation

mental

surplus

take steps to assure

and

vigorous competition
as

the

The

spending, both govern¬
private, until the de¬

bedrock

SACRAMENTO, Calif.
West¬
Enterprises, inc. is engaging

war,

than

Reserve

ways

can,

tragedy,

have

the

our

short

free

thai free

either inevitable

is main¬

System,

Parkway.

sur¬

from

Jerry Thomas Adds

Road.

A. Feit
;,

FAR

from

are

mands for funds

This

balanced

are

prudence

Buff

securities business from

Lora L,

formerly, with

was

Smith

Co.

and

Keith

Ernst

Richard

Securities Corp.

Two With Sills Co.

Opens

(Special to The Financial Chronicle)

MIAMI, Fla. — William T. Higgins and Edwin L. Brown have
become connected with Sills and

offices at 2650 East 13th St.

Company, Ingraham Building.

must

coupled with sound fiscal policy,
which means a larger budget sur¬
plus as well as effective monetary

policy

restrain

the

bank credit.

growth

•

Among the factors influencing
saving and consumption are those
fiscal
policies relating to taxes
and

governmental

require

they

special
not

are

changes
credit

budgets. These

the

and

•

attention because
remonsive

availability

as'

interest

rates

CAPTAIN

OF THE TEAM
(AND

are

WON

THAT WON—IN STYLE
CHEERS

FROM

THE

BOARD

PUBLIC

OPINION)

private activities. Untimely fiscal
policies can create or aggravate
imbalance

thus

dilute

the

and

economy

effectiveness

monetary policies. On the other
hand, fiscal measures that help to
maintain

balance

reduce

can

the

degree of restraint that monetary
policies might otherwise have to
exert.
I Experience
over
the centuries
has demonstrated that there is no
tolerable alternative to adequate

fiscal

and

operating

monetary

policies,

environment

competitive markets under
system of human • freedoms..

open,
our

Neither

economic

dictatorship

complacent

nor

acceptance
of
creeping inflation is a rational or
tolerable
way-, of
life, for the.

American people.
There is

panacea, no magichl

of
assuring orderly, eco¬
growth, nor are we much
likely in the future than in

means

nomic
more

the

past

achieve

perfect

formance

cution

policy and

have

the

every

per-,

timing and

exe¬

action.
to

reason

believe,

nevertheless, that we can discern
follow the right path.
Thus,

and

it is

clear that

the

present situa¬

tion calls both for

etary surplus than
have

tinuance
tion

prospect,

restraint

not

and

upon

supples of

new

Action
Let

larger budg¬
we have
had

crea¬

money.

There

cost

the
of

the

alternative

.•

power

living.

is,

whether

so.

the
the

stabilize

to
is

the

will

11f the will is
there, and it is
demonstrated convincingly to the
American people, the cost of. liv¬
ing can Abe
stabilized, interest
rates

will

volume

relax, and

savings

crystal ball.

It's

simply that the forward-looking
know

men

who shape

our

design and they know people—a combination

styling prediction

on pretty

solid ground.

sufficient

will

en¬

it.

They

saw

Awhile back,
Director of
dart

Styling, predicted that people would

for

different

use

dive.

end

the five

it—so do missiles and racing boats.
cars

that bore the stamp of this

conviction—having been exhaustively tested, probed and

proved at the company—went before that highest tribunal,
the Board of Public Opinion.
tljen? And then history

was

made. People took in the

look, lift and grace of this new shape

triumphant

sixth

And

bit

appearance.

roughness, "lean", and front-

for smoothness. Total-Contact brakes

sense

standard of

ease

and

shortly,

so,

the

on.

every

TorqueFlite transmission demon¬
safety. These

were

real

news,

the sales figures.

Today, it is clear that the sivitch is
Forward Look. One

of motion and loved

De Soto,

out

of levery

Chrysler

five

the

on to

new cars

Imperial.

cars

of The

Plymouth,

They're being

bought by people who realize that years-ahead design

means

dollars-ahead value.
It will take you

these

And

Pushbutton

big news! And

Dodge,
Last October,

and

was

wedge design because it's the motion shape. It's

functional. Jet planes

built in, not added

was

Torsion-Aire Ride banished

strated

Virgil Max Exner, above, Vice-President and

that the shape

they discovered that the engineering

set a new

the

The only question

there

Chrysler Corporation does not have

that puts

American people, pulling together,
have

people in Detroit think, the styling

the defeatist

question that
Government
and

Federal

some

daring,
cars

path of believing that widespread

unemployment
to inflation.

team at

con¬

Required

Contrary to what

cars

now's the time

get it

but

and with
to

few well-spent minutes with

one

our

dealers

buy advanced design

one

discover that

and that

you

exclusively with The Forward Look.

couraged

to provide for the eco¬
nomic growth needed in this
gen¬
eration and'the next.
The
gress

Committee

and

the

Con¬

contribute

can

greatly,,to
declaring resolutely

that

end

—so

that all the world will know

—that stabilization

living is

economic

the

cost

primary aim of Federal
policy..

The goal of
price stability, now

implicit
van

the

Employment

and directive

his team

of stylists were

recently

awarded the Industrial

Designers' Institute
gold medal for estab¬
lishing continuity of
design in the five lines
of 1957 cars

THE

while main¬

taining separate design
identity for each line.'

FORWARD

CHRYSLER

•

LOOK

CORPORATION

Act,

be madp explicit
by a straight¬

forward declaration

Mr. Exner and

PLYMOUTH

•

DODGE

•

DE SOTO

•

CHRYSLER

•

—

engag¬

and

savings.

offices at 2483 Collier Avenue. Mr.

(Special to The Financial Chronicle)

in the institutions of free

•

„

ROCKAWAY,

ing in

1
'

BROOKLYN, N. Y.—Alvin Feit
conducting a securities business

'177

previ¬

was

Open Inv. Office

Brugh and Mrs: Clyde H. Bell are
with Jerry Thomas & Co.,
now
Inc., 233 Royal Palm Way.

fering that would undermine faith
■

—

securities

offices '«at

ously with E. W. Smith Co.
V
A
A,' ';
<
.«* ;

Parker, Secrecaty-TreasureL

tolerable. For

men.

engaging

Gramercy

Of¬

(Special to The Financial Chronicle)

that way lies ultimate economic
chaos and incalculable human suf¬

free

East

PALM BEACH, Fla.

world

country

business

of¬

Wilbur and Hilda Buff
:

befall

7251

from

ficers

greater
could

business

are
Fremont B.
Hitchock;
Jr., President; Weldon B. Mans¬
field, Vice-President; and Sheldon

render to the easy delusion that a
little inflation, year after
year, is

system.

Federal

gates.

our

securities

fices

will, set the face of
resolutely against
keep that enemy

from

bert

—

;.,

our

nation

inflation

pressures

quarter..

have the

M. H. Gilbert Opens
CYNWYD, Pa.—Morris H. Gil¬

ern

sus¬

growth

Enterprises

(.Special to The Financial Chronicle)

economy.

the

Congress and the Executive

enterprise

moder¬

produce

can

omy

undermine

In all of these

tained in all segments of the econ¬

further infla¬

may

restrained?Bluntly, the

Form Western

ex¬

money and
the cost of

con¬

inflationary

any

The

threaten

forts

the field

that

authority
cost
of living,
the Federal
promoting the public Government will set an
example
welfare must not relax restraints, of restraint in
outlays and at ine
in mot face of continuing luna-v
II.

cated

Congrers,

that it will

iir:\ bounds'
of capacity
dedi¬ the

the

you

credit

revenues and expendi¬
that, in times when total
spending threatens to burst the

tures

ravages

assure

cesses

Legislative

Government, in

can

assure

—make every effort to check

of Federal

than the

the

from

man

junction,

and

creation

can—and I

promptly whenever
of living begins to rise.
'

G. No one

little

itself

are

taken

branches of

to
act
as
aggravating
rather than equilibrating factors.
hedges

anti-inflationary actions

the cost

nature of. inflation

the

Iliac

IMPERIAL •

DODGE TRUCKS

(806),

V22

The Commercial and Financial Chronicle

and there .is none to say him nay. There are no workers
anywhere -who might be inclined to compete with the

Continued frorh first
page

;

calls

upon

management and

labor

exercise

members of Mr. Reuther's union, and
do

;

so even

could c?m.e VVtht?ny r0alli: monopolistic position- ; .

restraint

in their

who would dare

price and wage policies.' w
>i I ■
::: U
From whose lips.flow these
impassioned and on the

Shearson, Hammill Go.

proposal i

BEVERLY
gene

HILLS,' Calif.—Eu¬

F. Durand has become
v

;;
:<
?
' "
Now the truth of the. matter is that neither the manwhole accurate accounts of
the; evils' of inflation? From ! ufacturer!. Pf automobiles "nor any''other; ptoduct; can;fik
some academician
speaking from his ivory towerj .Some jil prices;.^here bezants them regardless of the desires and
clear-headed banker
viewing the current scene from his'
the..v/illingness,of. consumers .to pay them. Neither can
somewhat detached position in the financial world? Some
: any one of;them fix prices without regard to what other
business man who despite it all has refused .to raise his
manufacturers do or plan to do.; In other words on the side
pf the employers there is keen competition. But if a condi¬
prices? Some retired school teacher who must face old
age on a relatively small and fixed pension?-They hiight1' tion existed among these . corporations similar to that
fittingly have come from the mouths of any of these, ; which obtains among the workers in the industry "ad-,
but the fact is
ministered? prices would most certainly be the rule, and
they are taken from a long harangue by
Walter P. Reuther
demanding that car manufacturers, • natural forces which tend to keep prices in line with
or the three leaders in that
general conditions would be greatly weakened.
>
industry, reduce prices in an;
,

Thursday, August 22, 1957

E. F. Burand With

meanin§ only i1'ronl Te- in; "

■

none

they ^wished. In other words such

...

y i];Ci,ated
S h

amountthat

would

cut

half-billion

some

...

Strangely From His Lips

iU
.

„

f?-eJ|.en!:en9fs ^ s^rangelyi from' the lips of 0hp
tl
spokesmen for the labor unions, hnd
has

who

certainly not been laggard in his demands fort
cost raising
wage increases and working restrictions.. Mr.v '
Reuther, 'in the course of this long and wordy letter to

makers, does not fail to remind the industry that he
his associates
are now in
process of preparing for
1958 negotiations" with the
leading automobile manufac¬
turers, and he then proceeds to offer to "facilitate price
reductions provided the manufacturers will in advance
cut their prices." This labor leader is well known as one
car

and

of the smoothest labor politicians in this or
any other
country, and what he is doing now seems to substantiate

that estimate of him.
Just what

"facilitate"

Mr. Reuther's

are

price reductions?

proposals which would

Does he offer

corresponding cut in the wages of the members of his
union? That would appear to the
ordinary man to be the
way to approach employers with such a proposal if he
really means what he is saying. But, of course, he has no
such idea in mind. He
merely assures the manufacturers
that if they put the
proposed price reduction into effect
their .1958 models "we for

sideration

the

effect

part will give full con¬

our

such

reduction

your

cor¬

poration's financial position in the drafting of our 1958
demands and in our
negotiations, "adding that if any of
their

demands

were

believed "to

companies to restore all

likely to force the

part of the reduction the

question of whether they would

would not do

could

be left to arbitration. As to whether the
a

board

what it

findings of such
of arbitration would be
accepted by the union and
would do in the event that
higher prices would be

forced in this way, the record is silent. Mr. Reuther
goes
out of his way

tions of work

to say that steel wages and related condi¬

in no way responsible for
higher prices
industry. Automobile manufacturers are left

that

are

draw such inferences from this statement

seem

to them

indicated.
In the

course

his

statement, Mr. Reuther makes

much of the supposed influence of the
leading manufactur¬
ers of automobiles.
"Corporations in other industries now

tempted

to raise prices would," he thinks, "be under
strong public pressure to exercise restraint. We are con¬

fident
the

that

would follow leadership furnished by
industry in lowering prices." Strangely
does not believe, apparently, that reduced

many

automotive

enough

wages, or even a halt in the increase in wages

anything at all to combat inflation,
unions in the

would do

that there

are

other

country which might follow the lead of the

United Auto Workers in

taking definite

tion of the sort that he finds it

and specific

important that the

ac¬

auto

manufacturers take.
The Ileal

What
not

troubles

Mr. Reuther

that

now

whole

comes,

Situation
about

all

reasoning, which of

but the fact that he is in
as

most

this

is,

position to make

however,
is

course

such

absurd,

proposals

forward with. Let it be
carefully noted

talking not

to one
pmployer, but really to a
industry. He is speaking not for some
group of

workers

the

industry, but for all of them. He is in
effect telling the
industry upon just what terms,
have the

help they

they

want and

need

for their

can

operations,

. ,

Mr./

Durand

formerly

'.Street

Sales Corpora-

tion,;

past

Eugene
own

Durand,

the
COn-

I'ducted his
business in

investment

Tucson, Ariz.
f

•'

•

!
•.

•

-r

Form United In v.
..

United Investors Syndicate Inc.
conducting a securities business

from offices at 50 East 42nd

New York

Street,

City.

* MAKES

was

Broad
•

by Mr; Reuther and his associates. They have
oh more than one occasion taken full advantage of it to
force wage increases which they could not otherwise have
hoped to get. If Mr. Reuther speaks in another vein now

RA T

manager;-for

understood

le vard.

Pacific H Coast

That competition exists arrtong the employers of his'
union members is, of
course, well enough known and

;

o u

;.w hoi ©sale

it is because it suits his immediate
purposes.
■
.

arson.

..Hammill &
Co.,9608 Santa

; from their
receipts assuming continuance of the. .volume!'of production obtaining this year or last,
:
i

•

asso-

t with

CHESSIE'S

RAILROAD

Volume-486U Ntimber 5666f... The Commercial and Financial Chronicle*

Continued from page 4

One

of a series telling what Chesapeake and Ohio

is doinz to make

>ssie
io

first

this

bizzer, belter railroad.

appeared in Chesapeake ; and

advertising 24 ^eaj^ agQrlhs4 ,symbol

C&O's
he is

difference, ih the

way

high standard of C&O's programmed

maintenance is

road and its

traditionally smooth track.
a

The

this railway

paintained. But ltisn't done ^merely so that
pan passengers can "sleep like a kitten"®.

good business for both the rail¬

shipping customers.

Over smooth track

than 2(100

(new rail

was

;

laid

on more

tefc

niiles of track within the past

years) coal and merchandise freight trains roll
faster,

safely, and require less

power.

This smooth, fast transportation is a "plus.for

freight shippers. They know this and prefer
C&O's
But

dependable service.

good roadbed is only

one

factor in

pro¬

viding better railroad service. In the past dec¬

bil¬

ade, €&0 has invested more than a half
lion dollars in
new

signal systems,

and other
more

by C&O person-

automatically removes and replaces ties without
ivhing adjacent roadbed, thus permitting trains to
uiue
operation without delays.
\" C
.

new car

courage

piers,

building facilities
contribute to

and better transporta¬

efficient operation

With its

new

improvements that

tion service

Abbott Tie Machine, developed

yards,

new cars, new

for Chessie

customers.

thinking geared to tomorrow and the
to

translate vision into reality,
keeps growing and going!

Chessie's railway

KEWAUNEE

<ij
YjOINGTON

Would you

of Chessie

and

portfolio of pictures

her family?

Write to:

■MANITOWOC

'•BUFTALO

MILWAUKEE

OHANU

IsARNN

RAPIDS

CHICAGO
TOLEDO,

CLEVELAND
WASHINGION

.COLUMBUS
CINCINNATI
ASHLAND

HUNTINGTON

ioUISVILLE

»l

CHARLESTON

RICHMOND.

3809 TERMINAL TOWER,

CLEVELAND 1, OHIO

WHITE SULPMUii

.Nt-WiX!
NORtC'LK V

(808)

The Commercial and Financial Chronicle

the

absence

weather this

Public

lately

heavy

industry; the
manufacturing activity
is m
airplanes, with a scattering
of.,, other light .industries.
Elec.

tricity supplies 77%, of

tinental

additional

with
com-

Ron

consolidation.--plan)

$31, million to nearly
$10,4( million currently; and 1956
showed

revenues

the
is

come

now

six

over

ITr&wL
nearly 13%,

times

The

company

natural gas)

three

plants,

gas

About

the

capability

lastyear increased

hegt

55%

with

served

increased

vear

96.-

customers

are

Park

used before natural gas was avail-

(completed

„„if

unit
new

last

one

station

caDabilitv 01
of
capaDimy

total

first

was
was

185 OOOkw

bringing

svstem to 886 5f)0kw

Of the latter

tire electric Joad

but

now

the

?nly_abo^:one-flfth.
<*
tomers.
Th<? ' second

the

The

six

division
is
growing
rapidly. The company is actively
pushing
its
gas
house-heating
82% of the
in

the

"in July this

and

new

way,;, with

cost of oil

helpful factor. Overall saturation remains only about
12% (compared with 5% about
two

years

ago)

that

there

the

company is well on the
to achieving its goal of 10,000

heating installations set for 1957.
&

The

and it

company

has

the

heat

has

the

effect

rate

months

return

The

part

considering

installing understorage facilities
below
of .its
plants for a large

ground

has

one

1949

propane,

1958.

costs

engagecj

mainlv

sei vices,

sub-

local

on
a

s"ncc

content
of

the

gas

increasing

the

ice, of, which about 34%

Los

An§ele.s

from

<S1

<K1

evWon

decline

seems

invested

declined

from

the

gouth

MacCormack

Aria resources book

Prior

thereto

ment

explains why the

offers

much

new

creased

was

Rothschild

Co.,

the

divi¬

gas

the

included

overall

5.4%.

return

For

the

Hill

COPY

Dept. K

6j/2%

Salt lake

level,

would

present
to

seem

low

justify

earnings
rate

Co.

$1.43

the

cline
ol

gas

compared

pervious

appeared

relatively
sales

with

period.
due

warm

earlier

this

$1.54

This
the

year,

de-

effect

weather

while

true.

Since

for

■

/>'

the

not

th£m

therefore,
a

re¬

prices in

prices

do
that

have

group
up

migh( fce expected in terms

the

rise

wages,

when

even

" ~

:—

j5S. eSSS
1stSession,

Juiy-957' Table 43» p* 133,

average

aveiage

2ibid* Tabi&39, P.,i25.

3 See

Table

;

l"-'V'ARV

TABLE

raised

contention

period -Committee,. 85th -Congress.

instance

Ior,; /^stance,

Wages, Output, and Prices in Manufacturing

Indexes, L!).n-4!)=1<M>
Wage

Output

(2)

(3)

(4)

95.9

100

95.9

96.1

48.6

104.7

103

101.7

103.5

46.1

99.4

102.5

100.5

52.5

113.1

113

'.100.0

-103.6

62.4

134.5

121

111.1

114.3

67.3

145.0

125

116.0

112.3

161.0

136

118.4

112.1

Bill

Wage

74.7

•

Prices

(Manufactures)

(5)

71.0

153.0

127

120.5

112.9

77.8

167.7

140

119.8

113.6

(179.5)
(186.6)

144

124.6

117.9

147

126.9

121.0

(83.3)'

(1)
$44.5

Wholesale

;

Cost

(Billions)

——

Wage
"Bill

(86.6)

"Productivity,

Prices,

and

quarter" 1957

estimated

compensation

Column

Index

Ibid.,

Table

Column

Column 2^ divided

Column

Ibid., Table 39,

Column

Incomes,"
the

employees,

of Net

115., .11)56

percentage
Table

10,

1st
total

and
in

change

90.

85.

by Column

125.

1957

figure refers to January only.

TABLE

Value

Table, 81,

basis

shown

Output of Uolrporafions and Corporate Profits

,•

•-

; Value of Net V
Corporate Output

/ *',

"(Billions)

"(1

v ;

1947

(Special to The Financial Chronicle)-.

Corporate

(Billions)

)">'/.(?V*

$104.7

120:3

Corporate Profits
As A Percent, of
Net Output

•

Profits

: (3). ;
-"/'28.2

;;

$29.5 "

R//

32.8

;

26.2

■

LOS ANGELES, Calif.—Michael
Berry has been added to the
staff of Marache, Dofflemyre &
Co.,
634
South - Spring
Street,
members
of
the, Pacific
Coast

1948—/

1949.^

19,51--——.

1952—__—_

Stock Exchange,

ANGELES, Calif.—Harold
Collins has become affiliated

with

Neary,

Purcell

West Seventh

& Co.,
210
Street, members of

the Pacific Coast Stock
Exchange,
Mr. Collins was
previously with

Akin-Lambert

Co., Inc.

•./-'• 40.0
41.2

/ t

156.4

-165.7

>•

■

-v-W/27.2
^

-"22.7

:37.0

178.6

->.

27.3

/- 35,9^*

160.0

;

1955__—_—»

Neary Purcell Adds

131,6
VV T51.4
'

1953_J—___
1954—•

LOS

>115.4"

•

1950—______
•

in-

for the twelve
June 30, 1957 were

-J L-_.

argument in easily shown

the

managed to force

pro-

period,

out

manufacturers

to raise prices

Column

South

With Marache Firm

earnings

only

^
621

(Special to The Financial Chronicle)

months ended

bear

whole,- this, form

Year

crease, but the company has made
move in this direction.

Co.,

•

formerly with Calin-Seley &

was

In¬

and the general
opinion that "fair
return" should be raised
to the

Box 899,

Richards

Milton

Spring Street, members of the
Pacific Coast Stock Exchange. He

twelve

4.75%, or 5.1%" ineluding the interest credit. Considering current high money rates

FREE

have

The statistics with

not

products

industrial

Wage
rise, but

spect to wage costs and

able to control the

For

true.

(1st quarter)

(Special to The Financial Chronicle)
—

only 6%.3

pro-.

recent

1957_1_____

been

14%

the

an excuse

costs.
Wage costs have
since 1951, but prices
of manufactured goods,have risen

inflation" is

of .their

more.,

Column

approximates

are

price

wage

risen

argu-

prices,
adminis-

continued to

have

pro-

1954_—_—

officer

Inc.

has

reverse

prices

role

present

1955

Joins Hill Richards

months ended June
30, the figure

Write for

Utah

construction

earnings,

industry.

City 10,

3.6%

sion, for an average of 5.0%; how¬
ever, with the interest credit on

serve

opportunity
to

and

the electric invest¬

major

the

1956_„____

New York,

year-end balance sheets). Using
more
exact
formula
with
a

had

form, the

administered

1953__

Exchange,

about 5.4%

simplest

raise

their prices to match the increase

Changes

1949____—

& Co., 453
members o£

producers .in

detailed investigation would
Since that time, however,

costs

Year

Mr. Cioffi has recently been in the
investment business in Florida,

...

Sprjng gtreet

paid

boom

reveal.

other

among

usually

1950_______

capital, which
around

for

Liotii has become associated with
Evans,

can.

than competitive producers/only

hourly earnings in manufacturing

Joins

not

that

not

(special to the financial chronicle)
T

1954287

the

manufacturers

1947-49

Evans, MacCormack Co.

the

rate

LJnc

Vincem

clue

the

VimPirxffi

rose

11,%.3' There

tage. of the demand increase

its

even

other

labor,

creases as

disappointing

earnings

for

and

again

have taken advantage of wage in-

and'te"

programs'

costs

pro-

wage.

ducers

use

by:only

Whether-

the

his

ducers who

and sendees and

Through

of the increase in demand afforded-

selling

teletvnewriter

turing

mineral-pro-

substantial

derived from the belief that

had

cost,

be little doubt that in this period
manufacturers did take advantage-

costs, on the
costs of the

for

have

and

than .wage

14%, and wage cost in manufac-

the
a

direct

ducing

during .' the
Korean
boom
of; manufactures "did rise

1951, prices of manufactures

him

fca^llsion

sector,

ment

iiprv

the Pacific Coast Stock

somewhat
of

vicinity

and

yidnityflnd hf'subshhary
Wvipp

faster

cost, but in agriculture, although the/farmer's income pays

toll

were

the

and

Wage and Price

furnishes such services in Nevada.'
On March 31, 1957, the company
had 6,325,809 telephones in serv¬

rais-

LOS ANGELES, Calif.

busi-

and

prices

tered price industries took advan-

about
4.6%
currently
(Standard & Poor's figures, based

which would
times the

many

area

the

that

the

can

Even- in

things,

mainiy local ana 1011
telephone service, in California,
the
Oregon,
Washington
and
Its
northern portion of Idaho,

While

are

•

the

productivity

hand.

of furnishing communication
•

slocK yleIaca 00
trend

equivalent to

'®nd iate.
recent low aroiund 20

considerable

summer

ness

firm,

from

materials-

wage

par,

grapn uo. is engagea in me dusi

One-

mnvprrinn

capacity,

ing

pipe line to store this in Pennsylvania, which is the only place
available. However, the company

balance

main

new

HpnH

rather expensive for the

amount of

and

half of this year were at a higher
rate than for any similar period,

surplus gas

appioxi

customers.

Manure of share earnings

opportunity for further growth. New gas space heating installations during the first

way

tew*™*
common to lose its earlier reputation as a "growth stock." The
stock has been unable to re-attain
its 1954 high of 24V2 in later years,
falling short about a point in each
of the past thiee years despite an
increase in earnings to $1.51 last
year and an increase in the divi-

considerable

and

of output, thus taking

changes into account. Examining
the data in these terms, it. appears

portion

mieiesi.

the rapid giowth of the company. 49 Ron tPiPnhnnp<;
They increased from 61c in
to $1.19 in 1950 - then stayed
around that level for the next
exchaaee serVic"e
tour years.
During 1950-54 the
stock advanced from 10V\ to 241/2 vDhbhe

increased

products of the agricultural and/or
mineral industries, on the other

ducing

ie-

view

hand,

one

interest

acciueu

Unfortunately, share earnings
have not.consistentlybenefited by

year

gas-heating.

the

107.387%
107.38;

looked

be resolved into wage

The Pacific Telephone & Tele-

capacity of mains

homes completed

installed

area

costs

Tracecl back to the earliest stages
of production, materials costs can

after Aug. 1, 1962
redemption
prices

accrued

approxi-'

Conversion of older homes is also
under

latter

are

producers,

in turn be
broken into wages and materials.

^p^nse^nd ' In' the '"nveTtment Telephone'7ompan/~of" Nevada^

cuf-

percentage
if the

essentially into two categories:
and materials.
The cost of

producing

subsidiary, l Bell

gas

rampaiBn

the

^an+iay*+h^Ve"are~also

serves

product rises faster than

materials,

from
from

ranging

-ianiiai, Tnere are aiso substantial
substantial

en-

units will be installed late in 1958.
,

150,000

and

new unit

care

debentures

deem able on
a* optional

cnhprJnleH

involving
7
8

conversion

—£ de9ade aS° the

The

s
nonveision is
scheduled for completion in 19o7

amount 72% has: been added since
could have taken

industrial

point

tion Program

company has scheduled

1 ?

the

and

wages

toward the cost of its construe-

537

thermal content

same

conversion

'T,
lately

iod,uuukw;, cringing
capacity

with

terms

For

has

—

the

of production other than overhead
fall

Telephone & Telegraph Co., and

a,® * the
the

which

designed

generating

the

generating/;

for

six

>cdi;
year)

lctaj,

The

btu. gas,

served

are

repayment of advances from
its parent organization, American

gas having
1()00 btu ; the

remainder

^uiupicicu

the

natural

va,ue

On May 28 the new Edward F.
Barrett Power Station at Island

dedicated.

Inc.,

competitive sale on Aug. 20 on a
bid of 101.639%.
Net proceeds from the sale of
the
debentures,
together ■ with
proceeds from the proposed sale
m September of
1,822,523 additional common shares by subscription by its stockholders, will
be applied by the company toward

700,000 cf.

year.

last
1947 figure
figure and
s

daily.

manufacturing

gain of 13.4%
Net in¬

rise

•

have
risen 49%,1 whereas the
prices of manufactures hiave risen
only 20%.2
There is, of course, good reason

product

why wages should rise faster than
prices. The rising productivity of
American industry should make
its
price, the producer will be possible substantial wage infaced. with a price-cost squeeze creases without raising wage cost
that will reduce his profit. A dis- per unit of product, for the procussion of the role of administered ducer. Recognizing this, the arguprices in the economy, therefore, ment can be amended to suggest
should also consider the cost side that administered prices have gone
of the picture./
•
up more than wage cost per unit

yield 4.95%.
The underwriters
won award of the debentures at

million

two catalytic
plants and three liquefied petroieum plants with combined daily

grown fnnrr

over

cf,

water

have

revenues

of cost. On the other hand,

102.387% and accrued interest, to

Delivery of an
cf. began
bringing the total

five

part to reform

1950

•

production will result in
increase in profit, .both in ab-

debentures, due; Aug. 1, 1980/

maintaining (partly for ' standby
and peak-shaving purposes and in

a pro

cost

dicate, yesterday (Aug. 1) offered
$90,000,000 of Pacific Telephone
& Telegraph Co. 23-year 5 %%

now

contracted supply to,over 46 mil-

t-,

.The company has had a splendid
growth record, sparked by the big
post-war.- population increase in

Inland. Since 1947 (on
forma basis
Reflecting the

are

Pipeline,

December

Long

Island

natural

qlectric

the

revenuecontributes only 13% of
revenues compared
54% .for domestic and 24%

Co.

;

selling price of

that is faster than the

manager of an underwriting syn-

receives its principal supply
gas
from
Transcon-

pany

the

cost of

: *

\
.

centers

Industrial

solute

Stuart

To "Administered Prices"

earnings.

Tel. 5% Debentures
Halsey,

Inilationaiy Spiral Not Due

Offers Pacific Tel. &

the

.'■•/•/

using gas for complex and exactmg heating processes.
The com-

revenues

and gas the remainder.

"*'..

addition to expanding residential gas business, many new
plants, laboratories and research

principal

for,f

Halsey, Stuart Group

suburban and residential, with littie

operations
f

page

yjrr.

Island,iLighting supplies amount of gas which could be,
electricity and-gas to the greater " stored in i the same space.
This
part of Long Island, its service would be. helpful in
reducing thepeak

earnings

that

from first

calendar year

ment in

Long

Continued

has doubtless

1957 will make
a
better showing
and that 1958
will show still further
inprove-

Long Island Lighting Company

winter.

likely

appears

the

By OWEN ELY

cost

hot

prolonged

any

summer

retarded air-conditioning sales.

Utility Securities

area covering about 1200 square
miles, with a population estimated

Thursday, August 22, 1957

...

2J.0

'
•

33.2

42.7

22.3

20.8
23.9 "

1956________
.

1957

(197.5) r' '
(205.8) 7 ' ".

*• -

(1st quarter)
Column

quarter

1957

inating,

Prices,

and

estimated

shown

Column

Table 21,

Column

Column 2

divided

the

basis

Table
of

IT,

98. * 195(5

national

total

10.

...

103.

by Column f.

Incomes,"

Table

22.1

22.6

46.5

"Productivity,

L.L./.

M3.7 '

■

and

income

1st

orifc,

Number 5666

186

Volume

The Commercial and Financial Chronicle

...

changes„, are taken

productivity

sponsible

account. This does not mean,
course,
that prices; have not

for

the

inflationary

into

spiral.

faster than productivity, arid even

Rather, Wages have risen

flecting a basic change in the buy¬
ing habits Of the American public,
coupled
with. depressed
World

was

said

major element (in manufacturing
industry as a whole, or else their
actions would be reflected in the
statistical totals for all industry.

corporate net output.

sumer

can

materials

costs.

Thus,

be further

can

the

rose some

substantially more than the others.
These

ing the period from 1947-49 to the

Private
automo¬
biles and the cost of running them)

22%.

agricultural

prices

rose

with the

component of the consumer price

amended

least

index

which

parel.

It moved up only 7%, re¬

rose

was

ap-

as 'a

were

rose about 34%,
which rose over

and medical care,

(both public and private).

demand,

of,,this
lic

transportation, the disparity of

price

behavior

Throughout the

was

hot

economy,

Wide.
the

the

course,

oil

re¬

increase

takeh place

has

privately by large

^reflecting, of
the impact of Suez oil fuel
last

The

year.

year,

riext

companies. The

largest increase, 15%,

Continued

prices.

their costs ;would. justify,

that the
given
manufacturing producers to offset
their
increasing, wage costs.
If
leeway

considering, the
decline

farm prices

has

such has in fact'been, the case, we
would expect to see the

growing

producers

profits of

faster

than

their output, so/that profits would
become

larger share of output
period. "Briefly stated the

the

over

situation

would

follows.

Selling prices of producers would
be

rising faster, than the sum.,of
wage
and
material costs.
Coupled with the increase in out¬
put which actually occurred* this
would mean that profits would in¬
their

both

crease

the

because

and

total

because

The all-round

be¬

gap

widened

tween price and cost was

output

States

ahead, this fiew West sees its present popu¬

growth of the nine Western

served by El Paso

Natural Gas

Company and its subsidiaries

next 10 years.

continues to

A look at the actual data reveals

the

that

prior

years

boom

Korean

to the
profits

corporate

ranged from 27 to 30% of corpo¬
rate net output.
Since 1951, how¬
corporate profits have risen
slowly than output, increas¬
ing by only 11 & while the value of
corporate net output rose by 36%.
Corporate profits, therefore, have
dropped in recent years to 22 or
23% corporate net output, indi¬

accelerate, consuming energy at an un¬

cating that since 1951 prices have
risen somewhat more slowly than
costs.4

direct

and

have followed

sure

may

this pattern. I
that cases can be found

not

where

quite

producers,

industries,

entire

even

Again,

specific

that

possible

risen

have

prices

selling

But it can¬

than direct cost*.

these cases either
typical of manufacturing taken

not he said that
are
as

whole

the

for

account

energy

New

growth calls for new energy-

energy

to make arid lands fertile... energy

ever,

make rigorous

working comfort

living

Its

energy

to increase production in

market, our

increased over

have

reserves

of these reserves is

100%. The rapid rise

when El Paso Natural Gas

equalled only by the unparalleled upsurge
in Western energy

Company was formed, population in these
nine states has almost

in sales to El Paso's

committed

mines, in fields.
Since 1928,

the tremendous in¬

past 10 years despite

plants, in

augment

natural gas. In the

large reserves of

crease
.

is engaged in con¬

tinuing and intensive programs to

round

supplied with the

required for future growth, El Paso

Natural Gas Company

climates pleasant with

air-conditioned homes and offices for year-

and

To help keep the West

•)

precedented rate.

increasing by almost 30% in the

lation

was

rising.

Intensive

doubled. Looking

tion

price movements in our
economy, since they do not dom¬

requirements.

exploration for, and acquisi¬

of, natural gas reserves are

just two

major

El Paso activities designed to help

of many

inate the total.
serve
Some

business¬

prices, instead of being respons¬
ible for higher prices, are rather
major element in keeping prices
They argue that the use of
depreciation
based
on
original
cost tends to obscure the fact that

down.

sizable

of business profits

part

the present

time is due to the
capital gains that are being real¬
ized on assets purchased at lower
prices in the past. Operating prof¬
its of companies computed taking
replacement
cost
into
account

would

It,.is

smaller.

much

El Paso and its

been forced up to the point
normal

new

could

profit

investment.

where
earned

Thus in some

industries, the suggestion is that
administered

prices have been
as

keep them

with

prices

the

result

there

low as possible,

that

current

in¬

inadequate

centive to expand output to

meet

demand.

Irrespective of the merits of
last view, it is not possible
to
maintain, in view of the statis¬
this

tical
Prices
4

See

evidence,
have
Table

that

been

subsidiaries operate a

network of natural gas

administered

primarily

re-

pipelines, the

world's most efficient means of
tion. Other

activities

are

transporta¬

conducted in

ploration for and supply of petroleum,
refining, in the

ex¬

marketing of petroleum

products, in the manufacture

of petro-

chemicals-and in the search for and proc-

essing of uranium, a

further argued that in a competi¬
tive situation prices would have
a

needs of the West.

industrial

that

contend

men

the energy

Say the Opposite

economists and

Some

the

next largest ^in¬
vately
administered
prices,
at crease was in rent. Which rose al¬
least
in
the
most
19%
from
1951
to the first
usually
accepted
rose
17%, .but public transporta¬
tion
(streetcars, buses and rail¬ meaning of the term. Fuels rose quarter of this year.
roads) rose over 30%. Except for almost 20%, and it is especially
Again, it is difficult to conceive
this substantial price rise in pub¬ interesting to note that over half of rent as a 'price administered
last

suggest

rise

1956, but it rose about 10% ih

Neither of these components
considered to have pri¬

can

transportation! (that ,is

that ; producers have
raised selling prices more than the
to

and

problematical
Whether such a
spurt in price Would have taken
place without the Sueiz Crisis. Suez
apparently even affected the price
of coal, through its suSbtitirtion
for oil.
The price of coal had
risen only 3% from 1951 to early

public transportation

which

(again),

the

increase

of the individual

components of consumer prices in¬
dicates that two
elements rose

The
only major component showing a
larger increase was transportation

ponents

price index

about 7% in this period.

during this period.

privately ^administered prices
sense 'covered
this Thquiry. Certainly the situation "dif¬
fers from that !in other industries
in that it followed upon a special
in

marked
before.

expenditures

all the major com¬
moved upward.
Even

prices

10 to 13%

Korean boom,

very

componets

The

ago.

other

consumer

argument; relating to the contribu¬
tion of administered prices to .the
inflation

rose

the Korean

what went

An examination

picture can be somewhat
by looking at the be¬
havior of the various components
of the consumer price index. Dur¬

the

decades

most

whole

percentage of con¬
expenditures as it did sev¬
a

been

consumer

The

increase in demand, such that in
1951 food prices were some 13%
try, for instance, rising wage costs
were
to ,some
average.
The
degree offset by ■ over the 1947-49
lawer

high

has

contrast to

The

clarified

textile indus¬

cotton

in the

Thus

eral

in ,'large part be
attributed to the decline in the
second major element of the cost
of manufacturers, namely the raw
materials
provided, by, farmers.
1951

since

i r

Examines Price Index Intensively

slowly than wage costs

for

have gone

that prices

fact

The

increased relative to the value of

situation since

boom

cannot

ducers

The

costs When this has in some decree been textile markets. As those in the
Industries or for some offset
by
falling
agricultural textile industry know only too
producers. Nevertheless, such pro¬ prices,, corporate profits have not well, clothing no longer accounts
some

This may or may not be a,, case

to the increase in demand
general rise in prices. ; -

sponse

gone;ru£. faster than -wage

for

(809)

El Paso

Natural Gas Company and

sidiaries

zpria,

fuel of tomorrow.

serve

its sub¬

California, West Texas, AH-

Idaho, Nevada, Neiv

Utah and Washington.

Mexico, Oregon,

Was'in

page

2<>

(810)

The Commercial and Financial Chronicle

Continued

from

page

Thus the increase in productivity has not matched the ina year.

•

Inflationary Sural
Not Due
MjpiEttl- lillfl IrlftV
•+',

ffl

t\ A J

nnn„niln„

rnmnnnpnts

rirv

■

aTl!f maJ°r

t-ie

arJ

one

' '

„

industries

processing

industry6
th<?
lndustiy witlfnritnMv^d6,™
with privately adminis- 15+
the

demand for g°ods- The economy to the advocacy of

has

not

faced

significant

short-

ages.

risen,

Drice

that fi"al +? '° *aU
r;se

C°"Stmt + f the °ther maj°r

deflator

Desnite

rose

the

sectors

manv

tne

econ-

omy, with the result that the gross

tight

money

19;*

undue

conti§<|Vein~

XSXSS^gx^
tly tG1 ls
solution/

need

Instead

make

conrprf^J

tq increase productivity

x,We

policy has arisen because of the provide a level of growth it
f
tendency to use the level of un- support an ever-incrpa«i'w« 5. can
employment as an indicator of ard of living. There :ai5
ncl~
how; close to full capacity the means that can be used Wb !?any
economy is operating. The devel- such a result. I personallv a
Ve
opments of modern industry in feel
that
more
concern
^
recent

have

vears

in output' prices continued to ployment

have remained about

consumer

lentl B+fh iSd

have

*.a.-

have

theseWfuGf
that

niIP

increases may also kill the achieved without
that lays the golden egg.
ment interference

not - Much of the misinterpretation
excessive of present conditions that has led

however,

costs,

been accompanied by

In fact, in 1954, when an
virtually :^nclianged., This again actual fall in demand occurred,
Can
^
-W° 1"±lu~ gross national product in real
?n^es' Agricultural •-prices have terms declined at tne same time
' but wage costs in tne food that the gross national product

tpionhnfl anrf3

Thp'
The nniv
only

ntps
lates.

rpU

Vnimrir^/

rlpnninp-

r.ptprppni^

rising

■••••■•■"■lilViVH- A AAHVil

goose

S?M ."if? "IT SS

AdminiStGied PflCGS

10
tinno^ni^

wage

...Thursday, August

of this

than

the past.

made

less reliable
it

have

mav

A larger

WmcTc,,,wv

nnem

measure
heen

proportion

concessions

<+Vi<

o„

the

othe?

C°'-

porate profits

® necessary

ndiuT?™"1

mrassw
tually reduces

the price
shown for this group as
These
five
components

prices

sumer

medical

tion,

household
less

30%

ization

that

are

resoorsihle

ary

spiral

rent

and
If

consumers'

sumer

amounted to

commodities

85% of the total

in consumer prices.
In contrast, the goods and services wnich
constitute

the
two

the

remaining 70% of
budgets
contributed

only 2%. 5

The

data

those

data

these

show

elements

■

nof.jtv

that

consumer

prices which rose
during the period from 1951
througn 19o6 brings out some ad-

nicture

ffts,

the'conclusion

that

with rises

the

present

period

can

° hiS necessarily requires the taining the rates of increase that
vibelow ca- hirinto of additional operatives.
could be achieved—and are being

™

Examines

Proper

?tnn

Policv

fhi nvinf riol

output
signif-

attempts

,nPf»

made

achieved in some other countries;
There are risks, of course, to an
mailt increase in the labor force, expansionary program. Demand
In view of these factors, it is no should not be allowed to expand
to longer correct, to assume that be- to the P°int where it cannot be
CaUse the leveI of unemployment filled by normal growth. It is in

+ '+++'-can .be.stepped up with

"'
Npvprti,o1o<;Q

Frequently! the rate

ace so far nave employed pii—

j§

low

the

economv

rtnorofin-f

at full capacity and

milizing its
growth.
Very

nnt !hm fLliS inflation, rather potential rate of
thP
if i- nrCT,iI^in?hf?Stn
Speci±lcally' significant changes

°Ul"

Tl/e^t °f 'Itffo p°lieiesrithat.,a'/ aPprop''i"

Thpv

basis they cannot be dispened

make
investments
that
would
raise productivity.
In the last analysis, the price

inr

i^t f[Vp\7p^c

ihp

•

mmfit,

■■.

thus

consistent

ieacj

nHpp«

consumer

least

•

• •

manufactures

„•

onmiL

Dividing
into

quired to keep a plant operating
are often hired on a salary basis,
and even when they are on a wage

since 1951 services have risen 21%
price, and commodities have

Least Rise

Examination

ratP

living since 1951.

not.

budget

the

groups,

less than 1% to the increase in the'risen
cost

have

resources are more fullv

necte^^fven the
GX" SimharH
Q1°PS by-10 or.i5%* really be laid to the fact that we'
fftlphSb l t
i lnciease ?•" /?' 311 inFreasmg utihza- do not have sufficiently rapid ecoJ knowledge, and a tion of tne capacity of a plant no nomic growth, and are not main-

budgets have risen whereas

consumer

available

to be found in these price changes,
it is that service items in con-

rise

consumers'

inflation

together they were
responsible for raising the cost of
living by almost 0%, and this
over

the

Hatlonary^re'ssur^frorn1'the"
de~ visoiy employees who "are"^'
utili?ad'such '"creases in demand
a
Piessuie tiom the de- Visoryemplovee^'who
aie
re- would also encourage producers

prices

" mand side, but rather to rising
'
The. economy can be said
Services Have Risen
to be soft, in two senses. It is not
there is any general pattern dellYermg the Muds °f productiv-

constitute

yet

for

if§'HSS?

indicates tnat the pi ice in- iaia on anectiy with a diop

oen^rai

administered

con-

fuel^

care

tion does not hear out the

whole,

transporta-

operation)

than

budgets,

(public

increase
a

in output

can

this

connection

that

monetary

controls can be useful

re¬

straining influence, but we should
aim for a higher rate of growth
than we have/been obtaining in
recent years., -

snp^iiir l that the economy is take place with minor changes in
^SebVom^A?4 ^ f?1 the level of unemployment. Thus'
to
this
question.
One category, nrimarilv fn fh^
a,ttnbuted a equired is monetary controls for example, between 1949 and
iiouse
furnishings, showed an abTCOntsi,'mei's fr0"' ayer" 195« unemployment dropped only Monopolistic Pricing Considered
solute drop of
approximately 6%.
ien,t
nr.in
thn
f/?/ /
' Plesent situa- from 5.5 to 5.0% of the labor
My. discussion up to this point
This drop rttleccs two influences,
nrices nrivntolv adminicwf? v?
nlirj' f» cl PO^cies can only sue- force. Judging the lev^el of output has centered around the relation
First, that part ot house furnishlargo commnTpq
Moniifaohlil! -fhf^
stopping the price rise if of the economy in terms of unem- (°r lack of relation) of adminisings composea of textiles dropped
hlve no+ nilcpH
fn
thf nnK? LoL ri T +wages from continu- ployment, one would not have ex- tered industrial prices to the resliarply in price. Tnis price betne fuii
nf tholwld
n8 to use faster tnan productivity, pected output in 1950 to exceed cent price rises. But the question
liavior in part reflects tne relatheir costs
and
cnrnnnf^nmfik flnn " T w
businessmen that in 1949 by much more than of administered prices goes deeper
lively depressed state of.the textile
have not 5'
!
-S? g°od profits, are making 2%, since this is the average an- than this. In a dynamic economy,
industry, and of agriculture in
the value of outnnf
Thfc ^c b
l?
that will yieid in- nual change in the gross national it may be possible for producer,
general. But secondly, house furshould not of muLo VJiffi-n
i '^Q?j Vr proc!uctlvlty' and §en" Product in real terms that has re- in monopoly positions, even wilhnishings also include tne major
to virtue and rpsfmint
^ ^ t
beheve in expanding mar- suited from increases in produce out increasing prices, to retain iur
iiouoenold
appliances, ■ and here 0f b^ comlnips hiif
tif P3f h ■' / are; apt to give in to tivity and growth of the labor themselves more of the fruits of
the rise in
wage cost was offset
the general softn^s
f?r wa§^. in" force- Between 1949 and 1950, productivity increases than might
in
some
degree by increases in
01T1V as
whole
and
thuT i'tn
a
similarly, is likely however, real output actually rose seem justified, either on ethical
productivity. Prices in this sector
demand strono enough fn
fn 3
significant demands, on 10%. In other words, given suffi- grounds or in comparison wim
liave tnerefore not had to
cover
price incren«?e« nf
fdf'nvf* r°Un? b3 ,.^uS \va§e hi- cient stimulus, expansion of real what. they would receive under
wage increases to the same extent
occurred
during the Korean hW IpvpW S-f3
lieJ glve.n .tbe output can take place without re- freely -competitive conditions,
that they have in
industries such
The
behavior ^of
thn
id -d "f
?t
f ? i )e optimistic quiring an equivalent expansion Such a situation might go unde4»s services
where
productivity in- 'components of fhl Ion
expectations
of
the
future. To stop, in productive resources.
tected because it, would not tie
creases have not been
as great.
index^ also bears out thf/'^ le,wage rise by monetary means,. This example is all the more reflected in an absolute price rise.
house furnishings Category conclusion, since the
elements that ^expectSf^to make ebu--inesf st1riking' of course, since the stim- ^"t-might instead be hidden in a
includes a great
many products have risen fastest are
eUher per
men hesUant about giving wa^ ulus to g^ater production did not
that can be classed
*™UeK p^lce dl'op than WOU,d
as
price-ad- sonal services
nnhiin ,,fvihiii
5 aoout giving wage occur until the
ditional

points

that

p].ice r|ses ;n the nerind

since

fhp

relevant

are

nr^o

•

■

•

middle

ministered—more, probably,
any other

than

€°sts Rose Faster Than Prices

component o£ consumer

budgets except private
transporta-

f"' Is behavior, again, fails

trially
forced

administered

prices

have

the cost of
living.
other
category, apparel,
up

What

One

costs

Jiological

combined

changes

with

tech-

probably

data

for the

bal-

anced the increased
wage costs so
that price
increases did not materiahze. Food prices also
remained

product

has

risen

about

!^J,

Priep

fn#ipY

1st Quarter

Food

3951
Hl.O

Apparel

J^'n

item"

Percent

tih>7

rh»«™

imjuhnw

118.6

-f-

6 8

113*2
106,5

+0.5
— °-5

124>4

+10.7

electriclty

Ho'f
mo'!
103.1

134.3

+18.7

112.4

House"furnishing""

iii'o

+19:5

Household

man

139,1
104,6
125,7

—

JJ8.4

134.4

+13 5

124.0

~~~

Housing
Rent

Gas

electriritv

and

Fuels

ooeratinn

Transportation

r-—-

Private

■

Public

Medical

carp

Reading

and

Otber.I.

recreation

reeleation

Jor^

„

tr5UM,i»«rtau«ii

for

110.1

+10.9
+

3.4

TinW th?"«

nisi

6.3

+22.1

122,5

06.5

9 0

"+34.0

135.7

Pl>*

u's'

•'.

•>«"«.-,

n».

The genial
been

charge that has

lndustnall)

against

made

a direct 'Nation between the administered prices is tnat they
of unemPloyment and the prevent satisfactory adaptation to
a?

un!

there

was no increase in output
manhour in the nonfarm
sector of the economy. Judging

per

by the unemployment
should have been a
performance—yet in

level, 1956

of high
terms of the

year

stagnation.- growth of productivity it must be
a tight
considered a very poor year, since

output per manhour failed to rise
at all.
Monetary controls, of course do
bave a proper role to play. They
can be used very effectively

selective basis in instances

^
»°
a
are
w
the sarae,^
Stable Prices

that

money policy will slow down the
increase of wages more than it
dampen productivity increases and the investment needed
to provide for an expanding out£!!'
f.^t' ^Productivity is
,^1 S/nSltl,V?.th3n Wages t0 de"
Pressed conditions, a tignt money

The

things that stimulate
and

example of the lack

otherwise have occurred,

changing

economic

conditions,

are productivity
changes or changes in the levelol
demand. In the 1930's, for in-,

whether

these

where

ducei'S in adjusting to economic
conditions was a matter of great
concern. Particular attention was
directed to the failure of administered prices to fall as much as
Prices in the non-administered
sectors. On examining this evidence and making some calculations ot" my own» 1 persan^!
came

to the conclusion that

this

situation could be explained on
grounds other than the inflexibility of administered prices.
Specifically,

the

administered

+®maV ..1S excessive. Thus over- price industries were also the instimulation of the construction in- dustries where direct costs were
V! tbe ^nitial stages dustry might well be handled by primarily wage costs. To the exbefoie it results m unemployment monetary controls. Excessive con- tent that materials entered, they
f
Pfiee rise at all, sumer purchasing power may be were largely materials from the
tiJtv
retarding produc- bandied by consumer credit re- mineral industries, which in tun
IZ]/
\ 1?°.re than. wages, stnctions -And investment-booms faced large .rind relatively inilex*-.
use an actual increase in wage beyond the capabilities of the ble wage costs. In contrast, the incost which m turn will necessitate economy to meet may be held in dustries that were considered not
f-Ju*^lonal Price rises. Thus a eheck. Again, however, I would to have administered prices were
l^gbt money policy at the present
.e lo emphasize that these are in general those processing agm
time may well be self-defeating.
Jbe circumstances of the pres- cultural materials with a relaThe very elements that permit
mG*
tively sma11 Proportion of ^

5-9
+15.3

175.5

care

Personal

Perhaps risking
There is no assurance

Consumer

in-

t'i'e(t!ey .wlU be un" employment continued to fall
■!'avestfe"ts lightly, to less than 4% of !he
and -pro- labor force, but at the same time stanc,e. the inflexibility of pro-

no-

(1947-49 = 100)

1950

economv

^h*rn,

contrast''

year

wages rose 32.5%

affords

a"d

of the

''n

a pnce r}se 1S n°t accomin the simp
panied by excessive demand, tight
nod, which is a rate of almost
m?ney can achieve stability of
—tz~~
'° pnces ordy a^ ^ie cost of reducing
5 "*>rodl,ctivity> Prices, and incomes", rhe rate of growth of the economy
2%

TABLE III

Components

s"^h teresting

wage

vide for

11.5% in the five years since 1951
about

The year 1956 also

inci-eaLsh.it
ipoieases, but because performance of the
ib^fthe fulZXl" wPnf^ole. In 1956, the le/el
f

t/n S ilnim

faster

hltuh

either

!rrearterms m/Ts n!

cutput

result

retard

Wages have risen

askin^

economy

that costs

e^1

been

period

and in particular

theVnry-SilgLtiiPsice
the period. The fall decline• over tional
in raw
ual

the

to since 1951 do indicate is

support the contention that
indus-

about

mS p.;,:

use

increase

investment

productivity.

The

of monetary
eiary policy
poucy to prevent
prevent

under

present.

S+T ?rice atab"«y-and
omy

r3te of gro^tb of the

are

cost^uch as food process.ng

and Growth

1 do" think that

compatible,

and

can

a .port
be

brief

could

find

l3e conclusion

were more
ministered

sup-

that pri««
inflexible in the adprice
industries. I«-

Number 5666

The Commercial and Financial Chronicle

Volume

186

stead, I

found that in all indus¬

'prices tended to

tries

...

Generalizing From the Individual

quite
with direct costs. In in¬

closely
dustries

agricultural raw
fall in the

using

Although I have indicated that

closing, I would like to point
out again
that it is, of course,
quite possible for individual pro¬

ducers

that

move

materials, the greater

(811)

not

prices

think

have

the

upon

that

administered

substantial

economy,

effect

I do not deny

they can exist in specific in¬
stances, and that in these cases

of producers to

groups

the

producer

and

prices for the
As

our

vantages

for

equitable

IRE Investors Serv.

;

consumer.

monopoly

KINGS

PARK, N. Y —Peter J.
Comerford, Jr. and, George R.

the ad¬

economy grows,

organiza¬

Venezia have

tion in

varipus aregs of economic
activity may increase. However, to
allow this' to happen and rhot to

formed

IRE

Inves¬

tor^ Services with offices at 18
monopoly position to obtain
of these., agricultural' ma¬
Nprma Lanefto engage in a secu¬
terials' than in; wages permitted :an unfair advantage without hav¬ they may be quite unjustified. In
rities business.
priq'es M fall more than wages!.' lIn ing i: apy apparent effect iupon somp areas,,individual monopolies introduce suitable restraints to
'>•■{'
.»
i
't
;
industries 'where this" influence prices; for the economy as a whole. tal^p on almost the nature of pub-, prevent'the exploitation of this
Was! lidt pr esen t, prices '-fell In terjns of the gross national lie utilities, fn public utilities, we power
'Thomas J. Kearns Opens
is 'unjustified.
In
these
product
and
the
roughly in proportion to wages.1
general ^ price recognize that, a monopoly form terms, I'think' that the Subcom¬ '1<
BROOKLYN, N. Y._Thomas J.
; I
do' hot' ' think, however, that level, these producers might ac¬ of organization is most efficient,- mittee has 'a' very real; need to
Kearns is conducting a securities
this! analysis of the 1930s is par¬ count for too small a fraction of and grant franchises accordingly. examine and evaluate the role of business from offices at 57 Kinckticularly relevant to the situation the total to have a general effect, But the companies; granted the monopoly in the various areas of
ley Place..
today.: The economy has changed ,yet they might still be engaging franchises are;. not permitted to the economy;
>
;
■
a
'great; deal since then; there in socially unacceptable behavior charge whatever prices they
t!
Krug Associates f
that should be restrained. In such choose, or the prices that would
have been many, changes in in¬
Sam Smaller Opens
Instead
stitutions, tax laws, and so forth. a case, the ability of a monopoly maximize their return.
;' JAMAICA, N. Y.—Krug Associ¬
HOWARD BEACH, N. Y.—Sam
Furthermore, the analysis of the to manipulate price tin its own prices are regulated in a q c or d
ates, Inc. is engaging in a secu¬
prices

use

;

to a period of de¬
economic activity and
of productivity increase. To¬

1930s referred

favor

cline
lack

can

looked

rather than
problem.
;
•

ethical,

upon
an

with

and

economic

the

some
standard, of fairness Smaller is engaging in
justice, taking into account business from offices
necessity both for return to Cross Bay Boulevard.

securities

152-06

business

rities

from

offices

138-54 Ninety-fourth Avenue.

day,
in
contrast,
technological
change!is taking place v^ry ia- ~

pidly in some sectors of the economy. The manner -h which these
technological changes are ex¬

ploited may well depend jin part'
upon the rote of the admihistered
price industries in the economy
and the influences bearing upon
them. I have not as yet seen any
evidence regarding the behavior'
of these industries with respect to

>i:

;

•

;

■ib

■

iir>'

I;" , =.}<•

':•

»•:;

."••.mi

i: '

•
.■

T-'1

exploit it to the full, or
by neglecting potential

they

whether

productivity increases they keep
growth below the rate it might
reach in a more competitive in¬
stitutional setting,

Trend

Future

the future, also,
the behavior of the administered
looking

price industries may be important
in determining the effect of both

technological change and changes
in
institutional
forms.
For in¬
;n

stancy, such developments as in¬
creasing automation, or the intro-

of
some
for m of
guaranteed_anirual wages, can be to increase fixed costs,
and
thus give the producer an
even greater stake in the stability
'
of prices and output. Whether his
actions under such a set .of cir¬
cumstances would bd' in' abfc'o'rd •»
with the
best interests -of the1

du,c tion

"expected

•

well as maximizing
his own profits, is a question that
would
require further study.

economy,

Again,;, I

evidence

not, think that
cited for

have

might

kinds

taken

for

High

FOR

material

INDUSTRY

discussion

This

the

considered

implicitly

thus

and

interests

passing,

said

this

scientists pioneered

prices,
share
^

and
of

total

output.

been

modified

prices

by the fall in

prices

but also the role of the farm sec¬
tor.
as

Not to do
is

the

case

may

now,

mean

business and

labor together
at

least

that,

achieve their gains
part at; the cost of

squeezing the farmer.

are

the result of a

of research and industry

farm

agricultural raw
materials. What price stability we
have
had,
therefore,
has been
largely at the farmer's expense;
he
has
faced
rising
industrial
prices with falling income. Cer¬
tainly, any consideration of future
industrial pricing ought to take
into account not just the relation¬
ship between wages and profits,

the

muscles

had a
lit

ir!!.") y

The effect

of rising wage costs upon
has

farmers'

which change

pounds of pressure into tons of lift.
The chemical sinews of these liquid

the farmer's

the

in creating these

amazing hydraulic fluids

problem. Industrial

price and wage policy has
considerable
impact upon

liquids that

controlled distribution. Texaco

has

of labor,

something

but

stake

In the

revolutionized the art of fast, cost-

Agricul¬
prices have been mentioned

needs

endless

time-and-labor
machinery. Petroleum plays a

example, move petroleum

business, and consumers.
tural

millions of tons of

made possible by an

hydraulic cylinders of lift trucks, for

pricing has been cast 1° terms of
wages, profits, and consumer

prices,

—

business

swift efficient

vital role in this development.

industrial

the list of American

variety of automatic,
saving

'i'l

whole.

economy

achievement stands the
movement of

that is equitable for
concerned and' at the
is beneficial for the*'

time

MUSCLE

way

groups

same

d "

investi¬

of different
solutions.' It' cannot be
granted that the com¬

developments as
these with present forms of in¬
stitutions will automatically work
all

'■*

-j '.l i

of such

bination

out in

the

feasibility

the

r
"

itself with

concern

question, and might

gate

\>'i

that for the present

1930s, or even

this

" '

the

period, is very relevant to these
issues.
I
would
hope that the
Antitrust and Monopoly Subcom¬
mittee

?y.' '
I.

>r\\ i

Texaco scientists
way,

partnership

in which

daily seek the new

the better way.

:yy
.

THE TEXAS

COMPANY

TEXACO
?

> •

Progress... at your

service
1

whether

change:

technological

M '

,/»
.■

(812)

The Commercial and Financial Chronicle

Continued

jrom

started

' *"7

page

hoard

for

The Gold Standard—

for

taking

the

011

<iiat

generations — thus
loss of from 2 to 3%

gold

itself.

for just

did

And

namely:
When the Bank of England had
(vesued a paper money claimed to
tijarry a
definite value in terms
of

one

reason,

that

the

maintained

paper

good

money

Adam Smith also voices in that

authoritative

book-

some-strong
against', ever tamper¬
ing with the value of a' nation's
currency, once that value has been
■duly established.
Here are the

sentiments

exact'

words

from

passage
'

his

book:

That

„

the

Cites Adam Smith

$20.67

raising of the denomina¬

into effect in 1837 and

•

•'

t*.* '

most

official

iota

one

price

which

ounce,

was

until

1933

—

principle

value."

And, with the exception of

the American

outstanding

"fixity

(1861 to 1879),
dollar, regardless of
era

who its owner

violation of the precept laid down

might be,

"re¬

was

toy Adam Smith in that paragraph
was
committed
by
the United

deemable in gold, on demand" at
$20.67 an ounce throughout those

States

many

years.

toric

basic

the

1930's

denomination

when

the

$20

our

gold
piece was dishonestly raised to
$35, approximately. And the in¬
that

flation

money

this

country has ex¬
* throughout
the
past
quarter-century can be charged
that

than

New

Deal

other

any

principles

honest

were

Democratic

and

Republican
prior to that

ministrations
famous

trickery

reason

Just why these his¬

entirely ignored in
1933—principles that had been so
religiously adhered to by both

perienced
more

date—is

derstand.

for the

difficult

ad¬
in¬

un¬

outlandish

prices we are paying
Again, in the 1830's when papereverything we buy— money was being given a good
with
the
possible exception of going-over in the U. S. Senate,
Daniel
cough-drops and chewing-gum.
Webster delivered
(Feb.

today

for

22,

Traces

the

Dollar

1834)

most

dress, which
Redeemable

fully understand the finan¬

cial position of the American Dol¬
lar today, as compared with its

carries

the

Paper

title

Currency"
Webster

voiced

these words of wisdom

to what constitutes

the

founding of this
nation right down to the present

know,
ought to

rency:

paper

honest

cur¬

indeed, that all

hensive,

circulate
on
a
specie basis; that all bank-notes,
to be
safe, must be convertible
into gold and silver at the will of

presented—starting with the first
Secretary of the Treasury, Alex¬

paper-money

time.

In this

endeavor, a compre¬
chronological summary
of the opinions of our most out¬
standing monetary experts will be

the holder."

sentative

ander Hamilton.
It

has

.1789

been

said

that prior

silver

coin

pattern for

Be that

our

the

American

the

Hamilton, in 1792,

instrumental

was

have

Dollar

both

gold and silver.

decided

ues

specie-

Simple

arithmetic

will

gle

for
as

was

times

regarded

valuable

Dollar

was

grains

15-

silver—the

given a value of 24.75
gold, or just one-

fine

fifteenth of the weight of the sil¬
ver content of the Dollar.
that

original set-up, the

U. S. went forward from 1792
for
about
40-years
without
any

change; whatever, in
inal

values—which

accord

with

principle

the

fixity

may well be added

those

orig¬
strictly in

gold-standard
of

value.

people

ever

took over in
never

since

the

New

Deal

1933, but which has

beep denied

tions and their

foreign na¬
bankr—since those

longer

redeemable

than

such

demand

seems safe to assume that

at
.

$20.67

ounce,

largely the result

stand-for-honesty

Webster;
upheld

abiiity

and

the

that

he,

principle

1837,

was

that

strong

the

Great

especially,
of

redeem-

that

all
paper-money
should be maintained "as
good as
gold." And in this latter, Webster
—

doubt

1875"

was

which

"Resumption

which

restored

1879.

Hobart

Thomas

according

Greenback Era
After that

gold-content
our

currency seems to have
weathered the. storms
pretty well
a

quarter of a century.
But, in 1861,'with the Civil War

upon us,, and with

heavy demands
Treasury, some people

was

College,

overlooked that

ably

was

for

Cleveland

second

But

since

the

graduation
attache'

Petersburg,

Russia;

turned

the

taught History
of

two terms

then

re¬

the

States,

University

served

one

Senator in the

State

St.

United

Michigan—and

York

was

legislature.

New

was

Albany that he became acquainted
with Senator Ezra Cornell—out of
which

acquaintance grew Cornell
As testifying to the
greatness of Andrew D. White, an

University.

oil painting
of him adorns the
wall of the Yale Commons, along
with the other "Greats" of Yale

University.
While

1933

ment"

Europe, Dr.

White

was

able to further pursue his favorite

objective,

namely,

acquire

great

were

1860

demanded

that

leader,

seems

gold-standard

included

the

Mark

Mr.

was

Ohio, in
Party's
he

been

candidate

office

notification

succeed

stone

That

minded

past

corner¬

all

admit

evident

structure

United

from

has

for

operating with

"cornerstone"

fair-

—

that

the

years

been

nomic

must

men

has

that

referred
"the

truism—as

abundantly

economic structure."

our

being

its

himself

address,

the Gold Standard

the

States

eco¬

which

been

the

removed

that

is
a
very dangerous
particularly
since
it
involves the
dollar-savings of up¬

situation,

ward

168

million

American

people.

knowledge as possible. Be¬
ing keenly interested in History,
delved

French

into

the

paid

the

type

Wliom history rates

Revolution—and

particular

attention

the

money
that France used at
that
unfortunate
period.
From

that study Dr. White became con¬
vinced that one of the greatest
curses which can be foisted
upon
mankind

by its
irredeemable

such

political
paper

leaders

money—

inflicted

was

the

upon

United

States by the New
Deal,
1933, and which "modern Re¬
publicanism" still allows to cir¬
in

culate

though it were real
That dishonesty prompted

money.

this

Theodore Roosevelt

My next authority in
of the Gold Standard

facts

article.

as one of the'
greatest Presidents this nation has
ever chosen for that
high office—

is Theodore Roosevelt.

Presidents

that

say

ideas

Based upon

that study of what

did

paper-money

France in the1790's—and, I
might add, did to Germany after

greater

his

monetary
masterpiece
"Fiat
Money Inflation in France"; and

that

effort

by Dr. White not only
helped John Sherman get favor¬
able

action

Act

aided

1875,"

the

McKinley
on

his

but

produced
the

Theodore Roosevelt—as evi¬

denced by several of his
published
speeches in support of the Gold

Standard.
from

Following"
of

some

gold-standard

Presidency

that
Free

vs.

1896

Platform—

"Gold

g^eat

Silver"

year.

cam¬

Men-of-

Fellow-Cornellians;

and
to
theJ American
people in
general. I say: Hats off to Andrew
Dickson White!

While space prevents
going into
as
to
the
many
facts

details

brought

out

by Dr. White

the

cause

Money, I will here

his

Sound

confine

my¬

self to one

brief passage from his
"Fiat Money Inflation in
France"

(p. 69), which pretty
clearly
up

what

nations

that

able paper

his

bound

words:

resort

money.

was

occupant

"An

honest

to
to

sums

happen

irredeem¬

Following

are

the

Ind., Sept. 23,
honest currency is the
symbol and expression
business life.

Canton,

the

assured

Ohio, Jan.

occasion of

finan¬

honesty is

27,

1903,

service

com¬

memorating

the birthday of the
lamented William
McKinley. With
specific

reference

the

great

political battle of 1896—the chief
issue of which
Presidential cam¬
paign was "The Gold Standard
Versus Free Silver"
President
Theodore
Roosevelt
said:
"All
other issues sank in
imoortance
compared

need of
tem

plane
our

with

the

vital

keeping our financial sys¬
the high and
honorable

imperatively

position

demanded
great

civilized

power."
At

the

Syracuse

know

what

September,
on

the

1903:

gold basis.

public is

tion.

Never

"This
The

Fair,
nation

before

Treasury of

excellent
has

capita of circulation been
as

of.

condi¬

the
as

per

large

today;and,, this circula¬

with gold";
and

"We

when

mean

honest

civilized
dollar

every

stable

currency;" and "So long as the
Republican Party is in power the
gold

standard

accordance
the

one

settled
what

regard

principles ot
morality and wisdom"—
properly

may

Theodore
of

with

fundamental

national

the

wonder

what

would

think

Roosevelt

monetary principles being
today by the so-called

followed

"modern

Republicanism."

Our

present-day Republicanism

prom¬

ised

the

but,

convertible

after
to

seems

"a dollar

currency to

our

fully

American

Voters, Liiji its
Platform, that it would' re¬

1952

store

four
have

gold

.in

years

basis"—

office,

entirely forgotten
promise, and ap¬

that

campaign
parently contended with the dis¬

printing

press paper-money

foisted* upon* us by the New
in 1933.

Deal

Recalls Andrew Carnegie
Another great American, a man
who knew the difference between
"hard

money"

Andrew

was

many

ing
it.

the

"There
the

line

only

world's

substance in.
in

fall

nations

and

value,

the
have

the

itself

gold, which

civilized

New

words:

cannot

standard

these

one

value, because it
that

Carnegie laid

which

world

Address¬

Club

1908, Mr.

whom

much.

Economic

the

011

"soft money,"

and

Carnegie,

owe

York, In

banks ot
their

reserve."

Mr.

Carnegie went

com¬

pare

gold to the North Star, say¬

ing,.

all

Star

fixed in

most

bodies

revolves.

then

He
a

sition with

that

—

about which the

occupies

that the
nearly

know,
the

its position of any

heavenly
one

of the
is the

solar system

said

that

gold

similar

somewhat

po¬

to other com¬

respect

modities, in that gold is the most

nearly
the

fixed

of any ot
continued:

value

commodities,

and

"To deny to gold its privilege ot
serving as the standard-of-value

would be like

star,

nearest

true North,

Praises

refusing to call the
all

Woodrow

gold-standard

his

first

the

Wilson

evidently

was

for one ot

man;

interests

President,

stars

the North Star."

Woodrow Wilson

becoming

after

1913,

that

was

promoting favorable action on the
Owens-Glass Bill
the bill that
—

established

System.
State

honorable

great

par

—

when

North

system of

At
011

and

"money

speak

excerpts
speeches

Logansport,

1902:

strongest

William
in

thereby defeating William Jen¬
nings Bvran's attempt to gain the
Standard

are

those

high

which

never

stronger advocate of
principles of Sound Money

the first essential."

his

also

President

displayed

expressing

cial

election

none

"Resumption
greatly

positive

be said that this nation
has

White House:

into

views. And on the particular sub¬
ject being discussed, it can
safely

developed

our

fair

functions of gov¬

and

ardor

while

facts

Of all

perhaps

held

the

his death, in the 1920's—Dr.
White

those

none

ernment,

than

irredeemable

mail

the

position

honest

supporf

—

and

imperatively demanded by

power";

the

was

who,

—

prin¬

morality

sifts out those
clear,

one

our

Canton,

nominated

that

high

tem

plane

representative

had

national

system of assured honesty"; "vital
keeping our financial sys¬

1896;

delegated
notify President McKinley that

what

need of

Also

Lodge — at
1900, where he

with

fundamental

pronouncements
Such inspiring words and phrases
as:
"honest currency"; "financial

Hanna,
of

plank.

the

When

Lodge who actu¬

that

accordance

straightforward

Re¬

plank

the Platform

not as

until. wisdom."-

essentially Republican policy.
was
Senator; Henry
Cabot
Lodge (the elder) of Massachu¬
who

and

centers,

of; ciples

much

but

setts

regard

was

publican

honest

settled,

President.;.

Republicans,

speak of

matter

him

majority

sound
prophetic"We know what we

temporary political
expediency, not because of shift¬
ing conditions in the production of
gold in certain mining

fair to say that the Gold Standard

•—and

that original "assign¬

Presidents ! from

our

Senator

after

term

himself as
Roosevelt! used

currency.
£0
long as
the Republican Party-is in
power
the gold standard is*

having' "upheld -the gold
standard, almost alone" during

was

appointment

.credits

succeed

-Mr.

stable

with

his

mean

when

biographical .! sketch : of

Grover

was

just been

seemingly

words:

Cleveland, prob¬
factor'in that result;

drafted

assignment

these

great Democrat,

the

President,

President Grover

and

promotion

slight change in the
of
the
Dollar,
in

candidate

White's

with

at
Oyster
Bay
27, 1904; when
Theo¬

had

their
,

par

being notified
nominated
Republican Party las
its

those

finally,

Y., July

that

was used
effectively in pro¬
moting success by the Republican
Party in 1896, it should not* be

ally

who,

And

book

later

fellow-Senator,

quet of 'Old Bullion'
by his oppo¬
sition to irredeemable
currency."

the

career

that

WagnalFs "New Standard
Encyclopedia" "earned the sobri¬

White:

planets

reprint of Dr.

transferred to Yale, and graduated
with high honors in 1853. His first

Benton,

Mr.

Homer, N. Y., in 1832, in
a
family
comfortably
situated,
economically; started his college

Funk &

upon

White.

paign

Hart

for about

First
born

Andrew

Yale,

his

1837,

dollar than

operations
the
"

While

John

Senator

hold

courses."

the

true Gold Standard

Jan.' 1,

received strong
support

from

right here that

the only other basic
principle of
the Gold Standard is
redeemabil5ty on-demand, a
privilege that
has been denied to
the American

irredeemable

by Congress in estab¬
lishing the official-price of gold

Under

warn

action taken

original plan called

moment

con¬

gold and silver—that

against

in gold and silver."

inter-relationship of 15 to 1

between

gold

me¬

continued:

already endeavored

paper

dis¬

original Dollar

circulating

to any paper of
any bank, one sin¬

tained 371.25 grains of pure silver.
And since this

sustained, it is
best, and the

the
then

country

and

abominable, and fraudulent pol¬
icy, which attempts to give value

The val¬

and adopted,
were
as
follows: 412V2 grains of
.silver, 0.9 fine, per dollar: and
24.75 grains of fine gold
per dol¬
lar.

gold

miserable,

upon,

close that the

silver;

against the paper of banks
which do not pay specie for
their
own notes;
against that

backed currency—backed in terms
of

and

repre¬

paper;

establishing
as

"the

purposes

convenient

dium."

Silver Dollar.

be:

gold

cheapest,

most

it may, the fact remains

that Alexander

silver; and when

had

been used by the American col¬
onists, and that that coin supplied
the

He further declared

the

serves

Spanish

instructive Ad¬

among
his published addresses.
On
that
occasion
Mr.

status prior to 1933, it seems best
to aelve into the hfgtbry of the
Dollar from

Dollar to

went
never

basic

the Greenback

payment."

the

Act

however,

the

any*

strictly in accord with the honest

expedient by which a real
public bankruptcy has been dis¬
guised under the appearance of
Perhaps

well-known

changed

usual

pretended

policy,

their

dore Roosevelt

of money
every

which

real

the "Greenback"

merit—at

some

of
-

period known

•

tion of the coin has been the most

had

"The

have

history,
circumstances;

human

whatever

moreover, is

dollar

gold."

Praised Andrew D. White
Congress
legislated
thatchange into being by slightly low-s
It can be stated, without fear
ering the gold-weight of the Dol¬ of contradiction, that no man ever
lar from its original 24.75
grains did more to uphold the honesty
to 23.22 grains of gold,
resulting and integrity of the American

under

tion,
the

attempt

has reached similar results in kind

rate

oft-quoted

privilege of converting their
American dollars into gold at the
U. S.* Treasury at $35 per fine
ounce of gold.
\
;

kind

same

Brief Passage

other

if not in degree: all of them show
the existence of financial laws as

gold.

people,
Govern¬

Sherman, later to become Secre¬
tary of the Treasury under Presi¬
Basic Principles
dent Hayes,
in 1877, ."was chief
;
But getting back to the original sponsor of that "Resumption Act."}
set-up—in the early 1830's some-'; And;«our "modern Republicans")
one
conceived the* idea that the
might be interested to know that:
15 to 1 relationship wasn't quite
John
Sherman
was
one
of
the
right, and that it ought to be 16 founders of the Republican Party
to
1, instead.
And that appears in the 1850's.

gold, the Bank of England had
honesty and integrity;'! to see
it

benefit of all the

terminated

the

the
to

foreign agencies continue to enjoy

•"Every

ment
temporarily withdrew the
privilege of rtdeemability—which
policy
continued
until
1879,
a

era.

sterling

Quotes

gold supply

our

instead of just a few, our

Retrospect and-Prospect

the

And

gold.

order to conserve

Thursday, August 22.
1.9,57

...

set-up
were

our

And

Federal

Reserve

the

original
No.es

under

Federal

Reserve

redeemable in

gold.

the New Deal in the 1930's,
row

Wilson

established

adhered

policy

cessors—Democratic

lican, alike

—

that

Unlike
Wood-

the long-

his*

prede¬

and

Repub¬

paper

monc>

Number 5666

Volume 186

The Commercial arid Financial Chronicle

...

(813)::
In

should at all..times be maintained
as sood asgold.?

gold-value

than

70%

the

higher

with

tance to the

people in the 1920's is
the fact that the dollars paid back
to them for their $9 billion of gov¬
bonds carried the

cared

had

one

that

this
up

paid for

tne

higher value than our pres¬
Dollar—assets recoverable in

and, un¬
fortunately,
gold
isn't
"lawful
money." But Andrew Mellon knew

bankers

Gold

they

Standard

callous

lack

the

dollar

whereby

—

now

billion

the

accumulated

real

ers

been

The President

finance

value of there

his words:

^ "I

may be

fact that rqy

meeting

Dec. 6, 1954. Here
'

biased because of the
business sells

money

paying for -thai ever •for future delivery, and to me it
the difference in these two types
since by the
of
Inflatioj|ybrought?ou is a pretty wicked thing to con¬
"redeemability," for in his
by that governmental "trickery." sider the
possibility that people
book,
"Taxation:
The People's. For
example, we now pay just will make present sacrifices for
Business" (1924), he has this to
about 70%
more
for practically
future
protection,
and: then get
|say:
: V.;
/':'r everything we buy—$2,0.00 for a
Quotes Mr. Mellon
^dollars of much lower value."
jC;
$1,200 automobile; $20 for $12
While I have seen no evidence
j "In so far as this government is shoes; 25c for 15c milk; 5c for a
that that executive has taken any
I concerned its policy has been to 3c newspaper, and so on ad in¬
further
steps to eliminate this
; keep its own house in order; to
finitum.
• "
"wicked thing," it is my hope that
maintain the gold standard unim¬
If there were to be a further
this
article
will help bring the
paired; to balance its budget; and
"devaluation" of the Dollar, as is
General
Public to a realization
to carry out a reasonable program
being actively
promoted by a that irredeemable paper-money is
for the orderly funding and grad¬
lobby of gold-producers in Wash¬ not real money — that only the
ual liquidation of the war debt."
Mr. Mellon well knew that if ington, there could again be fur¬ Gold Standard can give us "real"
.

;

our

currency was

—as

to remain honest

has been the

under both

case

Democratic and Republican Presi¬
dents

prior

1933

must "maintain the

unimpaired."

But,

the

—

gold standard
unfortunately,

| "New Dealism" and "Modern Re¬
publicanism"

to have forgotthat the Gold Standard played

ten

jing of the success that has been
enjoyed by this nation.

Not

long before the New Deal

ish committee of 14 eminent econ-

omists

and

the

financiers,

report in which they gave

ard in the

following words:

"There

is, perhaps,

no more

im¬

portant object in the field of hu¬

technique

man

world
a

sound

system.

whole

than

and

should

scientific

the

that

achieve

monetary

But there can be little or

at an early
date for the monetary system of
the world as a whole, except as
the result of a process of evolution
starting from the historic gold
hope

progress

standard."

economists of the New Deal

stripe

--for

they chose to follow the now
discredited ideas of another Brit¬

isher,
namely.,
John
Maynard
Keynes; and, as the result, our
political

leaders

not

only

com¬

mitted

the
unpardonable sin of
devaluating the American Dollar,

I but
I ing

also the dishonest act of foistupon

II deemable"

than

our

present

"irre-

c u rrency
whereby this modern form of soI called
"redeemability"
merely
I Permits the swapping of one piece
I °f paper for another. That is a
p ap e r

gold.

Let's see just what those dis¬
honest acts did to the accumulated
savings of the American people,
"s
evidenced by the following
.

facts:

savings—and
paying

ourselves
much

are

for

every¬

poses.
Celotex

paying today.

Avoiding

who

trying to build

are

clientele just how

sample.

about
meeting enough people and what

Several weeks
ago
one
of my
clients of several years was at his
summer
home about 1,200 miles

from

office.

and

I had

block

community will move to another stock in a company in which he
and they are faced with the task had
acquired quite an interest and
of building up anew, and their
job I made a telephone call to his
is

similar

the

begins from

new

scratch,

who

man

home

The

stock

"Work".

except

answer

That

alright

far

pect.

qualified

ated

pros¬

the

offered

vetoing.
a

few

him

the

fact

that

had

him

mind and called it to his attention.

prospect

7:30

pleasant chat for
and

opportunity of buying this addi¬
tional stock at a price slightly un¬
der his last purchase of several
months
before.
He
was
very
pleased to do so and he appreci¬

it goes, but is a bit too general an
idea for most men to find helpful.

First of all you must find

moments

often

about

We had

they
often have investment
background
and experience which is
helpful.

If I had
waited until the next
morning, he may have bought it
anyway, but the psychological ef¬
it.
Besides, he must be in a po¬ fect of an evening call at his home
sition to make a decision without gave it a special emphasis that in
! who

someone

has

need

for

what you are selling and who has
the time to see you and talk about

this

reliance upon anyone else. If any
of these factors are missing your
lead

not

ease

was

Don't be

qualified and your
spent
in
this
cultivating
prospect will be usually wasted.
*

understood

without

laboring the point.

•

afraid to be

Make

dox.

time

unortho¬

calls.
Ask for
the evening, in

your

appointments in
the

afternoon, on week-ends, or
both direct
whenever people who are
quali¬
will produce
fied prospects can see you. Follow
leads today and if your firm is
your leads' and make your calls.
doing this part of the job for you
Have good securities to offer, good
the rest is not too difficult, First
service to render, and try to keep
of all you must follow leads. Yoli
should have a system of calling your prospects' best interest al¬
ways foremost in your mind;
Go
these
people for appointments.
out to serve arid to help people
One of the most effective methods
do a better job with their invest-,
of doing this is to follow the time
tested method of striving for an ments, and by. keeping so busy
appointment rather than trying you won't have time to worry
about
building1 a business and
to make a sale over the telephone.
before you
realize it you will
Your first sale should be an
Good

advertising,

mail and

manufactures

While

them. This is where you can afford
to be unorthodox. Here's a

new

newspaper

business.

■

dis¬

broad line

of building
Telephone Follow Up On Ad¬
vertising and Direct Mail Leads
including:
insulation
board
products and accousticai
"May I speak with Mr. J. N.
materials,
which
account
for Brown?
Is this Mr. J. N.
about 60% of sales; roofing prod¬ Brown?
Mr. Brown? This is John
ucts, which make up about 15% Worth of Danforth and Jones, In¬
of sales; gypsum products, 15%; vestment Securities.
Recently you
tributes

Harm

materials,

How

such

catastrophe be
The answer is very sim¬

can

avoided?

...

ple if we will be governed by the
authoritative opinion of as com¬
petent

monetary expert as this

has

nation

ever

known,

namely,

and hardboard products and spec¬

the late Professor Edwin W. Kem-

Princeton

merer

was

that the Dollar be

Gold Standard, as

paragraph of his monetary master¬
piece, "Gold and the Gold Stand¬
ard"

(McGraw-Hijl),

1944

just
Here

shortly

published
before

those

are

his

closing

words oi" that book:

"Finally, the United States Gov¬
should

ernment

intention

its

promptly declare

rehabilitate

its

gold standard after the war,
call an international

own

should

and

monetary conference of all coun¬

desiring to return to a gold

tries

basis, with the object of formu¬
lating plans for the restoration of
the
international gold standard

international cooperation
makebthat standard a abetter

and
to

for

standard."
Thus

money,

support
to

dishonest in its very na¬
by the New Deal
It must be admitted, in
of national

honesty, that

government properly accords

foreign banks and nations the

redeeming

privilege

American

dollars

paper-

initiated

1933.

our

irredeemable

gold

t h e i r
at

the

S. Treasury.
Professor

Kemmerer

wasn't

which

are

(Spesinl to The Financial Chronicle)
time and make the calls.
You'll
BERKELEY, Calif.—David Bul¬ find that many will say "yes" they
len
has
become
affiliated with would like to see you either in the
Skaife &
Company, 3099 Tele¬ morning or the afternoon. Make

graph Avenue. He was formerly
Brush, Slocumb & Co. and

appointment

your

have

hang

and

made

You

Walter C. Gorey Co,

appointment and by keeping to
this plan you will be able to build
up a solid week's work of calls
and you will begin to build your
clientele.
'' •

With H. Carroll Co.
Special to The Financial Chronicle)

(

BEVERLY,

HILLS,

Call f.

now

your

I tures,

—

Fay

Special to The Financial Chronicle)

find

lon^ weekend.

The Telephone

T. R. Peirsol Adds

formerly with Bache & Co.

you

begin

clients you can

tionally

interesting

offer

life-line of

cancer

people in

They learn facts about.

.cancer

which

could

mean

ithe difference, between
,

life

and death. For information

[about

a program

your

plant call the American
:

Cancer Society or write
"Cancer"

care

your

local Post Office.

AMERICAN CANCER SOCIETY

Can Help You

to build up
keep in touch
BEVERLY HILLS, Calif.—Louis with them by telephone. You can
ask for referrals and you can oc¬
D. Bluman has become connected
with T. R. Peirsol
& Co., 9645 casionally make a call when you
something that
is excep¬
Santa Monica Boulevard. He was have
After

some

our

^business and industry.

many

Boulevard.

^Special to The Financial Chronicle)

Through films, pamphlets,
posters, exhibits and lec-

j education reaches

Maxwell

professional men, and
people who now work a
live day week, at -their homes.
BEVERLY HILLS, Calif.—Clif¬
Monday night is also a good off
ford T. Kawada and Richard A.
night and around 7:30 p.m. is a
Marott are now with Richard A.
time
when
people
are
usually
Fay & Co., 9911 Santa Monica home after a
(

first

Also,
don't hesitate t6 make
has become
some
calls1 during times of
tne
connected with H. CarrolL& Co.,
324 North Camden Drive. He was week when other salesmen may
not be thinking of working. Saturformerly with J. D. Creger & Co.
day afternoon is often a good time
Richard

CANCER LIFE-LINE

up.

with

Two With Richard

however,
"Modern
Republicanism" has ignored this
sound advice by Prof. Kemmerer
—it continues to confine our cit¬
far,

our

items,

quarters

clearly states in the very last

answered

10%. Celotex head¬
promised to send you information
in Chicago. The com¬ regarding mutual funds and get
pany, with about 4,300 employees, in touch with
you. I am calling to
presently has 11 manufacturing see if it's better to see you in the
plants in nine states.
morning or the afternoon." Say
this with a smile in your voice
Bullen Joins Skaife Co.
and also on your face. Take your
ialty

University.

restored to the

His advice

ture,

lions,
our
paper-money
was
I meticulously maintained as good

find

twice

thing

dollar

the people of more
billion of the real value

could

and

the

An underwriting group headed
ap¬
have done so.
jointly by Hornblower & Weeks pointment at a Specific time and
and Eastman Dillon, Union Se¬ place.
If you will stick to your
-t'-.-r
curities & Co. offered publicly guns and pleasantly use the fol¬
on Aug. 20 a new issue of 150,000
lowing routine you will make
shares of common stock (par $1) many appointments and you will
of The Celotex Corp. at $31.50 begin to build clients.
From this
per share.
first group of customers you will
Net proceeds of this sale will obtain
referrals, and you will be :
be added to working capital and
constantly working your leads,
used for general corporate pur¬
your appointments, and you will'

rob

about

|I fo 1933 \yhen, with

excep-

of their accumulated

izens

rare

above;

devaluation

I far cry from the monetary honI esty followed by this nation prior

mentioned

assets

death.

That
pronouncement,
made
nearly two years before the New
Deal came into being, was en¬
tirely overlooked by our would-be

serious today

1933, for, today,
of this nation own
$500 billion in the

people

Group Offers Celolex
Com. Stock at $311/2

was

known as

strong support to the Gold Stand¬

Money:

form of the three classes of dollar-

llhe "Macmillan Committee," ren¬
dered

than

would

I took over in 1933—to be specific,
| in June, 1931—a how famous Brit¬
i

be far

would

than $250

Committee

interests

Those

trying to get our gov¬
ernment to raise the official-price
of gold to as high as $70 an ounce
—meaning a 50% devaluation of
our
present Dollar.
And
that

50%

Work of the Macmillan
.

inflation.

have been

seem

important part in the achiev-

ther

men

company gave

Washington
are

saving^; '- and J thdy

have

than

welfare

recognition to
that responsibility in a published
statement before a group of lead¬

more dollars ($35 in¬
$20.67) to equal the for¬
mer
value represented by those
savings—means that the people

robbed

be charged
interest in

large Connecticut life insur¬

ance

re¬

were

otherwise

economic

—

properly

may
a

protecting

re¬

devaluation

say

com¬

in front, demanding return to

itself.

41%

insurance

Pays to Be Unorthodox Once

have a responsibility in is the best
way to get into pro¬
matter; they should be right duction. Sometimes men from one

of their customers.

The

fair to

seems

and

gardless of the value of the dollar

stead

lawful money,"

Banks and Insurance Cos.

closing, it

with

quires 70%

for

today's
Federal Reserve Notes specify in
fine print that they are "redeem¬
able

already
carrying a

dollars

I have often been asked

panies

deposits, government bonds

and life insurance benefits

the

th^ir loan to the government
can
merely be exchanged for

Calls

bank

By JOHN BUTTON

20 years.

that

numbers

'ities Salesman's Corner

leading economists of this na¬
been
actively advo¬
cating that policy for more than

Robbery

with dollars

the

tion—have

tion owned upward of
$125 billion
of
dollar-assets in the form of

paper-dollars;

$50 Billion

Committee

the

1933, the people of this

definite

privilege;
whereas
today,
any
paper dollars paid back to them

other

ent

any¬

exercise

billion

na¬

70 %

privi¬

lege of redemption in gold, if

associates

National

on
Monetary
Policy" — whose
membership includes some 70 of

Treasury.

ernment

his

"Economists'

was

But let's also ex¬
amine the "other side of the coin."

have been operating
since 1933. Also of great impor¬
which

Spahr and

but when

ounce;

quick profit of
U.

those

ones

advocating return to the
Gold Standard; for Dr. Walter E.

based

$7 billion in gold. Hence that
piece of trickery resulted in a

During the first
of his stewardship Mr.
Mellon reduced the National Debt
from $26 billion to $1? billion—or

>And

gold,

own

three years

by
$9,000 ; million.
dollars possessed a

$20.67

raised to $35
ounce, the government came to

WL Mellon.

drew

billion

the official-price

fortunate

alone in

our government owned

upon

1920V"this nation was
in having as its Secre¬
tary of the Treasury a man highly
skilled in finance, namely, An¬
the

1933,

about

Teglmeyer & Go. Offers

Continued,

111.,
is
offering
55,000 shares of 30-cent

Chrysler Corp., meanwhile, will build 110,000

publicly

its

cumula¬

Only 52,035 units

best

tive class A capital stock

(par $1)
27,500 shares of class B capital
(par one cent)
of Super

stock

Food

Services, Inc. in units of

one

August

"Ward's"
model

car

are

$5.05

are

offered

unit.

per
as

These

speculation.

The net

proceeds from this fi¬
nancing are to be used to permit
the company to increase the num¬
ber of retail stores serviced

and

make

retailers for

funds

the

by it

available

purchase

of fix¬

162,740

May 1. 1957.

built in August last year.

that

Studebaker-Packard Corp.

Thursday

makes

car

finished

last
with

week

from

July

levels.

•''*■

Independent Grocers'
Alliance Distributing Co., an Illi¬
nois corporation, commonly known
its IGA,
under
which
it
was
IGA wholesale grocery

franchise for the New York

City
commenced

company

May 17,1957.
organized for

The company was
the purpose of operating

whole¬
grocery business under IGA

sale

franchise.
Alliance

Distributing

alliance of
whose
IGA

retail

States

Independent

and

Grocers'

Co.

wholesale

grocers

than 5,000 associated
stores

Canada

the

United

annual

failures

for

who,

grocers

turn,

automotive

On May 27, 1957, the
company
entered into a contract with Fran¬

Leggett & Co.,

New York

wholesale grocery house, for the
warehousing and delivery of dry
groceries,
including IGA brand
items, to the IGA retail stores,that are now or may in the future

June.

Only

three,

the

Middle

and Mountain States suffered
year

South

West

North

States

Mountain

surged up 58%

Failures held

from

and

ago

year

States, 52%.

Of Ingot
The
of

drought is

scarcities
the

current

the remainder

all

forms

of the year,

steel

decade and

stated

Monday

readily available

over

the remainder of the
year.

buyer should have to

frozen

warehouse

and

other

vegetables

items to these

grocery

established IGA stores.
1
On June 21,1957, the retail IGA
stores

numbered

pany

tion

associated

of all

with

31.

these

the

The

stores

com¬

associa¬

had

been

developed

previously by the co¬
operative work of R. C. Williams
Co. and

liance
cost

Independent Grocers'

Distributing

of Super Food

Co.

Al¬

without

Services, Inc.

ERA Shares Offered by

Singer, Bean & Mackie
Singer, Bean & Mackie, Inc., of
New York City, are
offering pub¬
licly 100,000 shares of class A
common

stock (par 10 cents) of
Electronic Research
Associates,
Inc. at $3 per share.
It

intended, to

proceeds

acquire

from

production

use

this

lease

engineering

tion

with

new

net

financing to

new

facilities;

and

the

plant
for

costs

and

design
connec¬

products; and for

working capital

and

porate purposes.-

general

cor¬

•

Electronic Research
Associates,

Inc., incorporated

New Jersey

April 28, 1953 is engaged in the
business of

developing,

turing

and

manufac¬

selling highly technical

and specialized

transistorized and

semiconductor devices and related
components used in electronic cir¬

cuits and
apparatus.

pay

premiums

for

Prices will be stable and
over

the established mill

While steel supply will remain
adequate, a strengthening in
demand for the fourth
quarter delivery is looked for by buyers.
This is reflected in a
report of the steel committee of the National
Association of
Purchasing Agents. It expects a moderately in¬
creased demand in each of the
14 categories on which it
reports.
The greatest increase is
expected in demand for hot rolled
sheets at mills, with the next
greatest increase in cold rolled
sheets.
Plates and

structurals, followed

oil

country

tubular goods, are
expected to be in tighter supply-demand rela¬
tion than any other steel
product, this trade weekly declared.
"Steel" said that industrial
production is surprising many
people with its show of strength this summer. The
magazine's
industrial production
index —'reflecting
steel

output,

power

output, freight

electric

loadings and auto assemblies, stands
(1947-1949 — 100), or 22 points above a
year ago.
So far,
1957 has been
generally ahead of 1956, indicating that the easier
availability of materials results from increased
capacity and pro¬
at

car

156

duction and not lowered
consumption.
While steel mill
operation is spotty,
was

production

Motor Co.

-Last

with

"Steel" pointed out that
in the Buffalo
district, Bethlehem
Steel Co.'s plant moved
up to virtual capacity in
ingot production
while Republic Steel
Corp.'s plant in that area continues at half

capacity. The Bethlehem plant's
principal product is sheets
the Republic mill
makes bars.

are

remaining steady, except for some scattered
The publication's
composite on base prices for finished
steel remained at
$146.19 a net ton in the week ended
Aug. 14.
Jn the
Philadelphia area, warehouses reduced
galvanized sheets,
one of the easiest
products in supply, more than
$9 a ton.
posite

states

steelmaking

shipments abroad

are

steady and "Steel's" price com¬
grades holds at $53.83 a
gross ton.
Heavy
are

total

011

For

annual

1957

capacity of 133,459.150 tons

the like week

month

ago

the rate

was

Jan.

.Last, week

week

79.4% and

pro¬

V'J

and

trucks

amounted

of the

>'138,847-.units,

oreceding week's output,

!«.«•

the.agency reported there
-

were 20,233 trucks-made
TJms compared with 18,279 in the previous

and 21,679 a year ,ago.;
.y-yyyO

->.-y7v,.:v/-v/y
>7-.v.--/
>output dropped under that of the; previous
by 250 cars, whiler.trtfck output -advanced by 1.934 vehicles
during the week. In the corresponding, week last year 98:848 cars
>Last

week's

ear

week

and

21,679

trucks ••'were?.

7In Canada, 7,450 ;Carfe'were built last -week

7vn-:y7«7%y-y

compared with
in the like period a year "ago, and
1,561 trucks us against
2,358 units in the'simiiaf penbei of 1956.
7
'
'

4,290

cars

Business

Failure's. Decline Further the Past
apd ^industrial

failures

fell

222

Week

the

week

y ended

Aug. 15 frqii) £63; in "the previous week, and were .notice¬
ably below the
289,6Ftli£cto^^spoiidh^ 1956 ■ period, Diib & Bradstreet, Inc., reports. ; Huweyefp the" toll exceeded the 216 of the

similar 1955

week,'

Failures
from

229

less: thah 'the.,253 ,Of pre-war.J 939".

with, liabilities

week, earlier,;'an&

$5,000

the .corresponding
19p6 /week.
reported among small

they
ures

against 19

failures
week.

198

occurring

A-decrease to 24 from 36

the

other

was

intheprioiyweek.

151,

2.4

construction 21; hgainst

38
Less concerns failed than

against 15.
most

noticeable jyeaiMo.^year
commercial serviced! S 'S.
Failures

regions

last

declined

manufacturing toll edgedvup to 39 .from 37,
industry and'-trade groups declined during the

Wholesaling-had20fas'against

against

and

233

%ilurps, with, liabilities under $5,00.0 and
considerably qelow ihye- similar 1956 level of 56.
Liabijexcess of
$100,1 >0(7were incurred by 20 of the-.week's fail¬

Although

The

decreased

were

ities in

wereJless than the

week,

in " five-

With 'the

week ago,

and
a

the

Pacific

40 and

nine

ago

major

Coast

States

76, the East North Central
South Atlantic'Sta&s to 19 from 30.

the

service

in all groups.
occurred in retailing

year

declines

retailing 121

commercial

decrease to 55 from

geographic
reporting a

States

to 27 irom

There were mild
increases in the Middle
Atlantic, West North Central. East South
Central and Mountain States.
Except for the West North Central
States, failures were below a year ago in all
regions. The most
noticeable year-to-year declines
prevailed in the Middle Atlantic
States and the Pacific States.
..

Wholesale Food Price Index Last Week
Registered
First Decline in 8-Week Period
.Marking the first decline in .eight'weeks, the wholesale food
price index, compiled 'by Dun
& Bradstreet. Inc., fell 3 cents to
register $6.36 on Aug. ,13,. from .the 26-month
high of $6.39 re¬
corded a week earlier.
Despite^the drop, the current index repre¬
sents
at

rise of 4.6% over .the
comparable 1956 date when it stood

$6.08.

"•

Higher

wholesale

price the past week

•

were

wheat,

rye,

hams, butter, cocoa- eggs and raisins, while
corn, barley, beef,
bellies, lard, sugary-coffee, cottonseed
oil, potatoes, rice and hogs
were
lower.
1 <
.

•

The index represents the

sum total of the
price per pound of
raw foodstuffs and
meats in general use and its chief function
is to show the
general trend of food prices at the wholesale level.

Wholesale

Commodity Price Slips Somewhat for
Latest Week and Year
Ago

There was a slight decrease in
the Dun & Bradstreet daily
wholesale commodity price index last
week.
The index stood at
293.66

the

295.40

curred

1, 1957.

cars

"Ward's."

The

based

of,,

in the United States.

."!','v

keeping supplies

low at collection points.
American Iron and Steel Institute
announced that the
operating rate of steel
companies, having 96.1% of the
steelmaking
capacity for the entire
industry will be ail average of
82.9% of
capacity for the week
beginning Aug. 19, 1957, equivalent to
2,123,000 tons of ingot and steel for
castings, as compared with
80.6% of capacity, and 2,062,000 tons
(revised) a week ago.
The industry's
ingot production rate for the weeks in

car

gain of 1,704 units .above that

and

revisions.

Scrap prices, in general,

tne

output ..totaled 118,614 .units, and compared
(revised)%in the previous week.; The, past week's

118,864

production

g".

week's

whole

good enough in the week ended
Aug. 18 to raise the national
steelmaking to 80.5% of capacity. The preceding week's
rate was 79%.
average of

Steel prices

ween,
r7

industry¬
rise in the August daily rate pf'
assembly rp.ver July
highest lfeveT of August, operations in history for Ford

the

prices.

heavy

preceding';

Railroads'reports.

4.8%

and

it added.

The

cars,

American

Commercial

obtain

fruits,

wide
v

half

will

Passenger car output for the latest week'ended
Aug.46,,1957,
according to "Ward's, Automotive Reports," marked an

82.9%
.

for steel buyers after
items "Steel" magazine

week.

Practically

240
01

7-%-'- J

Passenger Car .'Output LasLWeek Scored a 4.8%
Industry-Wide Rise ifi Daily Rate Over That of July

those

Capacity

over

most

freight for the week ended Aug. 10,
1957,
or 0.03% ; below the

U. S.

v.-

y"v.p.'.. fy,;;:;; ;y;7 ry;

Expect Output to Rise This Week

furnishing and delivery of meats,
foods,

with

oven

making

the

In Latest Week

revenue

-Loadings for the Week ended Aug: 10, 1957, totaled1
740,471
cars, an increase of 25,264 cars, or 3.5% above the
Correspond,ng
1956 week, when loadings.: were affected somewhat
toy the steel
strike which had just ended; buh a decrease of
29,780 cars, or 3.9%
lower than the
corresponding .week rn!1955.S ''.
'7:
^ :

;

Steel Mills

ended

Central

in four regions; only the South Atlantic'Slates'; toil
appreciably. Meanwhile, failures in the East and West

Central

the

Atlantic,

increases.

above tne

week

Loadings Moved, Fractionally Downward

Association

Most geographic regions reported fewer failures in
July than
in

be associated with the
company. It
is in the process of
procuring and
for

declined

the

over

;

the

and

buyer, for the first time in 16 years, can specify the form
and shape of steel he wants and be
assured of getting it within
a reasonable
delivery time. This now applies even to wide flange
beams and plates.
Only a few steel products will be difficult to

arrangements

kwh.
.

Loadings of

higher than any July since 1940.. The rale of
10,000 listed concerns, off to 48 from 50, remained

cis H.

week and .1,597,000

manufacturing toll increased, mostly in the
textiles and apparel, lumber and furniture industries.
Compared
with the 1956 level, casualties remained
6 to 10% heavier in
manufacturing, retailing and construction.
1
.-or
■; •

contract with retail stories to sup¬

ply them with the food, meat and
allied
lines
commonly
sold
in
grocery stores.

week's output advanced 339,000,000 kwh., above
that

1956

Car

*■'^,77

picture, wnereas tolls
climbed,
noticeably in the electrical,
masonry and roofing lines. The dip in wholesale trade occurred
among building materials dealers and that in service among clean¬
ing and repair establishments. Contrasting with the--general-de¬
cline in July, retail failures rose in all lines
except food and

last

wholesale

comparable

subcontractors

among

declined

IGA grants

franchises to

Euisoii

Output the past week registered noticeable im¬

General builders and heavy construction contractors accounted
the improvement in the construction

mately $3,000,000,000.
territorial

per

Jan. 1,

Output Rose the Past Week

Aug. 20, 1955.

well below the pre-war level.

retail grocery volume of approxi¬

exclusive

The past

Construction, wholesaling and service failures dipped in July,
1,059. Although continuing
seasonal downtrend, casualties exceeded
slightly the -1,018

the

capacity

for ibi.6
are

of the previous week; it rose 615,000,060 kwh., or 5.2%

truck making increased to 20,233 units last
18,279 the week before but remained slightly J under

last year and were

with

of. 128,363,090 tons

electric

amount

Electric Institute.

reporting service noted a softening in Ford, International
Harvester and Willys truck
manufacturing thus far in August
compared with July.
week

because

provement above the level of the previous period.

The

run.

comparable

The percentage figures

The

tract

The

old model

plus the previous Thurd.say and Friday.

bringing the month's total down to

area.

the

not

energy distributed
by the electric
light and power industry for the week ended Saturday,
Aug. 17
1957, was estimated at 12,409,000,000 kwh., according to tne

ended its 1957
bringing to seven

week,

annual capacity

011

The

Nash, Hudson, Rambler, Lincoln and Continental.

On May 9, 1957,
the company entered into a con¬

business activities

turned

were

said

since

rate

Electric

this month,
out in 195J.

cars

Offsetting the Studebaker-Packard phase-out was resumption
Soto assembly in Detroit after a one-week
suspension for
inventory adjustment plus an end to labor problems which cut
into Chrysler Division Detroit
assembly on Monday of the past

business in the State of New York

based

Industry-wide,

Super Food Services, Inc., was
incorporated April 29, 1957, in
Delaware, and qualified
to do

granted

operating

higher than capacity in 1956.

production

s5.8%.

of De

tures and other improvements.

volume

output

the number

others

class A share and one-half class B
shares

The

Thursday, August 22, 1957

...

A year ago the actual weekly

2,033,000 tons.

placed at 2,359,000 tons

operations of 1955 with 169,248 completions. In August last year,
the company's United States
plants fashioned only 87,566 cars.

Co., Chi¬

cago,

duction

page

The State of Trade and Industry

Class A and B Stock
Wm. H. Tegtmeyer &

from

was

Super Food Services

and

Financial Chronicle

The Commercial and

(814)

Aug.
of

12, slightly below.the 294.91 a week earlier and
comparable date last year. Price declines oc¬
grains, livestock, lard, sugar and coffee.

the

most

Wheat prices dipped somewhat
wheat into

primary 'markets

trading lagged.

amounted

bushels, compared with 17,110,000 bushels

the

about

Movements
16.736.000

prior week

and

Cmnmercui^nu

.Number 5666... The

15,053,000 bushels last year, Wheal; movements for the season so
totaled 129,046,000 bushels;; against 130,033,000 bushels in the

Smith, Barney Group

far

similar 1956 period.

Except for some scattered orders from Ger¬
export buying of wheat was limited.

many,

While pi ices on oats and soybeans fell

advanced somewhat. However,

corn

fractionally,
trading in Chicago

below that of both the prior week and

ably

corn

was

year

Our

notice¬

ago.

The

•

■

decline

moderate

purchases of flour

resulted

ers

with prices at or just

Demand for the shortest Treasury

year.

obligations is good, with the

4% note still finding favor with investors.

tition for the available supply

Compe¬

ever,

with non-Government bonds still in a more favorable position
are

the Treasury

substantial rise in

prices

cocoa

picture there

domestic buy¬

i v

of under¬
Smith, Bar¬
ney & Co. on Aug. 20 offered to
the public $100,000,000 of Atlantic
Refining
Co.
4^2%
convertible

bonds, because of the better yields that are

into

nomic

pattern, there

accrued

plus

are

convertible

stock at $53 a share

common

thereafter

increasing prices.
The

debentures

benefit

have

will

the

sinking fund which
will begin in 1967 and is designed

to retire

60%

maturity.

opinions that the hardening of interest

are

100%

debentures

until Aug. 15, 1962 and

Also, because of the defensive econ-

obligations.

1987,

The

reports of important switches being made into

are

interest.

uncertainty that is surrounding the business

the

group

managed

subordinated debentures due Aug.

obtainable in the corporate, state and municipal issues.
Because

nationwide

writers

of investment funds is as keen as

than

income bearing

competed for receiit imports from Brazil.

of the issue before

For

the

fund

sinking

the debentures will be redeemable

York

warehouse stocks .of cocoa Tdll " to
345,348 bags,
compared With 430,367 bags last year. Cocoa arrivals in the United
States so far this year totaled. 2,243,409 bags, While for the com-'
parable period last year they amounted to 2,948,681 bags.
There

prime bank rate and the

„

was

week and

adjust itself

15,

two-four year

in transactions.

New

for the

lows

issues and selected intermediate term

Despite- increased export business, mice prices dipped frac¬
tionally last week as domestic buying, slackened.
Sugar prices
were
moderately below those, of the previous'week, reflecting a
There

still trying to

slight

declines for the week. Although buyers from Venezuela
stepped up their orders, over-all export trade in flour was slug¬
gish, i lour receipts at New York railroad terminals on Friday
totaled 38,140 sacks, with 3,825 sacks for export and 34,315 for

decrease

the

above

price

domestic use.

market

bond

discount rate and this means light volume

v'. <-• m

.■

Government

to the rather sizable increase in both the

week earlier, they noticeably exceeded comparable 1956

those of a

4y2% Debentures

By JOHN T. CHIPPENDALE, JR.

Chicago were estimated at' 24,5QO,000 bushels, nearly
twice the size of those of.'last year. Although purchases of soy¬
beans on the Chicago Board -of Trade fell considerably below
levels.

Sells Atlantic Ref.

Governments

Corn

stocks

Reporter

prices

Was a
moderate decline in pork trading during the
hog prices fell below the record levels of the preceding

rates may be close to a

peak now.

104 M>%

There is

shortage of the most liquid Treas¬

the

sale

net

the

from

proceeds

the

Atlantic

debentures

Refining will apply $81,000,000 to
of outstanding bank

securities since the Government has been using this medium

ury

interest.

the limited side, with the exception of the

is still very much on
shortest maturities.

securities, according to advices,

Government

interest

interest.

accrued

prices
ranging
from
100%, plus accrued

pany

The

and

They also may be redeemed at
any time at the option of the com¬

Principal Demand

Short-Term Issues

100%

prepayment

Chicago rose somewhat during the week; .they were below those,
the cornparable 1956 week.
Lamb prices, declined, as trading

sagged. Sluggish trading resulted in
futures.prices."
Cotton futures prices -continued

noticeable decrease in lard

C ;■..'

...

States Department

the

New

York

domestic.:supply of cotton for the

Cotton 'Exchange,

the

Exports for the

Interest Rates to

season

VoIiime^Fraetionally Higher for Latest Week

levels in

men's

sales

promotions
women's Summer apparel remain, at

and

Best-sellers were sportswear and better cotton dresses.
Although the call for Fall dresses, coats and suits expanded appre¬
ciably, sales were below expectations.
Men's stores reported
week.

noticeable

gains in purchases of Fall suits and overcoats, while
lightweight suits continued close to that of the pre¬
ceding week. Despite appreciable gains in linens, draperies, and

interests

kitchen

bank

the

and

rate

the

of the
of

business picture,

the

and the

action

There is also some evidence, through the defensive

quarters.

stock market, that there is more

common

than a modicum

uncertainty about the future trend of business.

high

and steady, purchases of major appli¬

dipped slightly. The buying of new passenger cars advanced
appreciably, and equalled that of a year ago. There was i\ frac¬
tional rise in total retail volume over that of both the prior week
the similar period a year ago.
The

total

dollar

period ended

1% below to 3%

higher than a
year ago, according to estimates by Dun & Bradstreet, Inc. Re¬
gional estimates varied from the comparable 1956 levels by the
following percentages: Middle Atlantic, West North Central and
Mountain States 4-2 to 4-6: East South Central +1 to +5; West
South Central and Pacific Coast —1 to +3; South Atlantic —2 to
on

Wednesday of last week

was

+ 2; New England —3 to +1 and East North

Early consumer buying
to

increase their

men's

white

topcoats and suits.
dress

shirts

and

Central —5 to —1%.

of Fall apparel encouraged retailers
women's Fall coats and dresses and

orders for

Best-sellers in men's furnishings were

neckwear.

worsteds advanced appreciably

Transactions

woolens

and

and wholesale stocks were limited.

print clolhs helped boost total bookings in
cotton gray goods somewhat over those of the preceding week.
There was an upsurge in orders for toys and dolls and volume
exceeded that of a year ago.
A substantial gain from a week
earlier in the call for furniture, housewares, and draperies oc¬
curred.
Wholesale volume in air conditioners and refrigerators

Increased

trading in

slackened, while volume in television sets and automatic dish¬
washers improved.
Food buyers were interested in fresh meat,
frozen foods and most dairy products.
Department store sales on a country-wide basis as taken
from the Federal Reserve Board's index for the week ended Aug.
10, 1957. increased 3% above the like

„■

Nevertheless,

the

inflationary

pressures,

according

period last year.

evidence

will be

was

registered above that of 1956.'

lletafl sales volume in

Low

trade

New York

City the past week showed

11% above the corresponding period in 1956.
temperatures and less than average rainfall, according

gains of 9

observers, spurred

let-up in the money tightening and credit

pay¬

The balance of the net

of the company

(Special to The Financial Chronicle)

limiting oper¬

ANGELES, Calif.—Dewey

LOS
D.

Davidson,

John

D. Varis and

Saul N. Yarmak have been added

According to the Federal Reserve Board's index, department
for the weekly period ended Aug. 10,

1957, increased 8% above that of the like period of last year. In
1957, an increase of 3% was reported.
Aug. 10, 1957, an increase of 5% was

the preceding week, Aug. 3,
For the four weeks ending

registered. For the period of Jan. 1, 1957 to-Aug. 10,1957,
recorded a rise of 4% above that of the corresponding

the index
period of

Also the fact that the Central

Vz% to 3Vz% by many of the Federal

authorities.

Bank rate

pushed

was

proof that the existing monetary

Reserve Banks is to be taken as

To
4

Vz%

to be continued for the foreseeable

are

Co.,

Street.

Central

the

excessive

use

not done so thus far, the

Banks, and they have

Bennett-Gladstone-Manning

resist, and this could have
at the Federal

U. S. GOVERNMENT
and

3% and a prime bank
member

brought about such sizable

Reserve Banks

versely affected the money tightening

Specialists in

confirmation of prevailing

might have been too much temptation for the

rate of 4 Vz %
banks

of the discount privilege

However, a Central Bank rate of

discounts

Spring

formerly

long time and as long as the

upping of the discount rate means only

policies.

Mr. Yarmak was

However, the discount rate

3%%.

penalty rate for

member banks do not make
at

D. Weston

South

618

responsible in some measure for the sizable increase

been

not

Inc.,

Company.

the raising of the prime bank rate from 4%

sure,

was

in the discount rate from 3% to
has

future.

staff of Daniel

the

with

policies

FEDERAL AGENCY
SECURITIES-

that it would have ad¬

operations of the monetary

authorities.

Capital Borrowing Remains Substantial
i

The
very

■

demand

large,

even

for money for

though

capital purposes continues to be

the next two weeks are

slowest ones of the year for new money

raising.

corporate, state and municipal offerings for
and there are no

retail trade.

store sales in New York City

yet, and this must be taken to mean there

ations of the monetary

The

1956.

of abating

In the pre¬

reported. For
the four weeks ended Aug. 10, 1957, an increase of 5% was re¬
corded.
For the period Jan. 1, 1957 to Aug. 10, 1957, an increase
4

for

Three With Weston

the

showing any real

that be, are still very strong and are not

powers

ceding week, Aug. 3, 1957, no change (revised) was

1957

- > -

trade 4n; the

of retail

volume

months

committed

operating in¬
during the
six months ended June 30, 1957
totaled $302,047,000 and net in¬
come was $25,293,000, equal after
preferred dividends to $2.74 per
common share.
In the comparable
six months of 1956, consolidated
operating
income
amounted to'
$275,196,000 and net income was
$22,149,000 equal after allowance
for preferred dividends to $2.40 a
share on the common stock.

ances

and

five

gas

Monetary Authorities Still Inflation Conscious

utensils, total volume in household goods slackened and
ago.., While interest in furniture and
was

first

policy

and

Consolidated gross

for interest rates for some time to

in¬
the'

will be added to the
general funds of the company.

opinion that the recent increases in loaning

uncertainty

were

with

proceeds

will be much less than had been expected in many

fall recovery

oil

Venezuela.

They point out that the trend of economic conditipns indi¬
considerable

loans

ment for additional concessions in

these rates to the highest

Nonetheless, in spite of the uptrend

be the high level

bank

connection

$27,192,000

subsequent

conditioners

air

come

somewhat below a.year

fell

of the

are

could

come.

helped sales of
a high level last

Stabilize at Present Levels?
prime

obtaining funds, there are not a few money market fol¬

lowers who

cates

reduced-price

the

than 30 years.

in cost of

And Year Ago
Continued

increase

increase in the discount rate has brought

rates

Trade

markets.

The

total

now starting is about
just ended amounted to
about 7,700,000 bales and the'Department" of Agriculture expects
a total of about 5,000,000
bales to be exported in the season now
getting underway.
^
•/

23,200,000 bales.

The

of increasing j
producing ca¬
pacity, including the acquisition
in 1956 of oil and gas properties
from Houston Oil Company for
$42,427,000 and deposits during

estimated that

cotton crop output would be 11,897,000 bales, somewhat less
than earlier private estimates.
'>"
•

loans.
curred

crude

pending clarification of the trend in the equity and

issues

ment

1957

According

of the

because

However,

money.

new

companv's

money

of -Agrieulture

its

is being put to work in the short and most liquid Govern¬

trading in. distant futures slackened..:. V.
The* United

bulk

uncertainty that hangs over both the bond and stock markets, more
money

to decline;, the past week, as

the

raise

pressure

usually the

The" calendar of

the fall is very large

signs yet of a let-up in the flow of new

of these

demand for them than currently

& Co.

issues.

offerings will continue to have an

new

influence on the level of interest

Aubrey G. Lanston

rates and, unless there is a larger

indicated, this means high rates

INCORPORATED

20 BROAD

☆

for

the

new

issues that will

be put out for sale this fall.

This
CHICAGO

means

also that the competitive position of

bonds will be bettered only

long-term Government

when they go to the lower levels.

STREET

NEW YORK

☆

BOSTON

•

Continued

from

increases

page

•

fanness

oui

Steel Industiy a
that the Using price

buy have had relatively little efconsumer's pocketin

recent

that

and
years;
increase in the

the

Cost

mess

about

services—as recorded in the Index

cigarette.

2%... And

concludes

only

with

this

simple statement, which I should
like to quote with
emphasis:
"It

not

possible to maintain,

flationary spiral.'
That

Dr.

that

and

Ruggles' statement;
what

the

evidence

clearly shows. Yet in the face of
the indisputable facts, which are
readily

available, to

anyone

who

cares to look them
up,),the belief
still seems to persist that
there is

something
about

special

price of steel
off

and

steel—that

the

somehow touch

can

round of

new

different

rise

inflation; and

that it will
quickly affect the
sitive pocketbook-nerve of

sen-

every

man, woman and child in America,
,,

resenting- the Facts to Dispel
Economic Superstition

That

sheer

economic

stition; and it behooves
to

expose

super-

us, I think,
for if this

such,

day for

hope Xt will

contpbute—qs T

broader public

re,a? caus5:s

ofpnflatiOn, it; must deal
and

not

unsupoorted

have

may

lished

part of

lore.

the

are

That

cent

one

the

was

nual increase

largest

recorded

ever

taught

great

that

the

has

other

an-

since

deeply

occurred

the

—as

still

are—for

past

ing. The actual mathematical facts
interest you:

may

Our price reduction
on

major

problem for our
company and we decided to do
something about it if we, could. >.
a

Fortunately,

.0pp0rtm-|ity

the terms of

union that
seeb

could

had

so,N

for

our

through

April of
living had risen only threetenths
of
one
percentage point;
but no sooner had our
price been
lowered than the cost Of living
began to rise sharply. In the next

unique
under

contract with the

increase;

not strike to

but

instead

obtain

ion's

three

they

Well, the Now York "Times," on
10
10 of this year,
published
front page
ago story in which it ana-

rhnnffps!

ip
the

Living

the fed
changes in
in the
Cost

Index

r»i!
of

since

1952,
and
showed what has
happened to the
fri"" of all of the major items

and

•

WPP

which

covered

\
applied particularly ttol !,Luuau
those
bear

most

directly

of1 living—the

short,

hoped

one percentJ
the tollowing month
and *** began t0 drop
not only throughout the balance
.

s£adUy-

ri"

biu

<•

ini

ivimncri-ieiif

oii

the year, but throughout allot

would

steel,

one.hal{ o£

the cost

upon

kinds

Uving?

steell

to the cost

point

age

which

whole

prices substantially. And what

happ'ened

average of about $1.25 per ton.

products

two

rose

Towards the end of this time we
had to give up and raise
wages

March

lyzed

granting the un¬
for higher wages,

determined to reduce the price
of m,r products
by »25 luilhon-or

facts?

months

percentage points.

it.

demand
,

,ir

took effect

From January
that year, the

cost of

year, our workers could

wage

May 1 of 1948.

lowest ppint 11 naa seen

by that Index,

s^ory. written bv Edwin L.
Dale, Jr., the "Times'" economic
correspondent, showed
just as

that

agat,—*» -,h- — -

"Times"

made

this significant

statement:

as steel.

"Though it may seem surprising," said the Times, "the
price of
steel could;
practically double and
the cost of
living would hardly
show it. Between 1951
the price of steel rose
the price of household

and

1955,
14%; but
appliances

J?t

all

some of those
said: :

t°i 1«onulnrlv smS
L°SYo SS

cfpp?
+, 1^.ea.
<ei
actually is.

state-

very much
hear today,

the pnee of

New Bridge

our

1957 model steel with that

our

1940

•,

model

United

%4 cents

per

pound.

m'inci

about

That is the

lUof

States

presumably

it would have expanded its
production at the expense of its
eom-

...

qiat

with

set

the

purchased at i
1040
WnCi?cASeu
sin
1940, hprause
because it
it thhblv
simply

The

price

And while the price

didn't exist.

of these new steels, such as highneces¬

A
case
in
point is the new
bridge that is being built across
the Carquinez Straits in Califor¬

nia.

Instead of

fact

is,

however,

high-strength,
-

"ew'

bers of this

"T-l"

turned

out

twice

much

of its competitors put

competitors
than twice
It

much

that

during

out

'
using
llcil

bridge. And by
this higher-priced steel, they esti¬
mate that they will save $800,000
the

over-all

cost

the

struc¬

ture.
,

it docs.

this

it
all

together, its

turn

now

true

grown

Steel

has

period

and

that, last

year, it produced about
times as much steel as it

three
did

1902;

have

its

but

far

grown

competitors

lustily.

much

they did in 1902!

Yes,

the

over-

States

111

„„„„

steel

■

our

does

M of the steel that is mad
,„horo
'America;
and
where
once

steel

using

Today.it produces less than

State

are

1902.

They produced 15 times

California

66%

output,

using the old-fash¬
ioned steels, the. engineers of the
of

today

than

domestic

it did back in

total

Steel

less

()j-

195/
color television. In many cases the
.
.
,
,
co1,
An;T,lv rf
could
radio

1940

States

produces

trying to compare the price

United

good deal

Steel's

mestic

continuously,

United

years,

production

total

has

right

do¬

declined

down

the

present day, while its conpetitors
have

taken,

ever-increasing

an.

share of the market away from it.
For every ton of steel-making ca-

So statisticians who

ignore this
all-important factor of value will
conclude

that

the

qlc pound

gone
new

up°

price

average

of steel

sell

has

But in the light of the
tvne
types
and usefulness of these

...

higher-cost products, has it really,
gentlemen? Or perhaps has the
price of steeh gone down, as an

srsssr-flrssSSffi
tew exceptions, it is also cheaper
-pound for pound—than almost

anything else

you

steG

we have added during
these years, our competitors have

added

almost

capacity;

three

this

and

first time—our

biame

the

of the total

capacity of the industry dropped
These

the facts.

are

Here on the

rcCord itself is the most conclusive

possible evidence of the vigorous

competition that exists within the
c,teel industry
To persist in the
discredited assumption that there
— :"
is
an
absence
of" competition
in
steel, is to renounce reality and to
cling- to delusion. And to argue
,

that concentration in this industry
|be rjse

that

js merely to say

the smaller
companies is increasing at tne expense of United States Steel. 1 his
then, is a new concept of concentration—a kind of concentration
among

in reverse!

our inflationary troubles.
however, it is my purpose

so>

their

tons

year—for

to 29.7%.

concentration

1S 111 my °Pmion another
pure and simple. Conceiv-

myth,

parity that

buy.

can

To put it in the politest possible
terms, therefore, let me just say
thatjhe so-called "high price of

„Today steel is selling for
ivprntfo

all

possess,

Materials

ment which sounded

did

Steel Must Compete

Corporation—made

It pr0-

those davc
Aj1f> "mononolv nower" .frpmwi,!
the
"monopoly power"
frequently
attributed to it, then

then there is the matter of

And

instincts;

Steel

•

Saves $800,000

Steel

"T-l"

time.

ot
course, is one of the most basic
ot

Benjamin
of

had

duced twice as much steel as
of its competitors put together,
Now self preservation,

services
or
Prices generally.
From 1940 to 11Ilatlontransportation, May of 1948, they had advanced
Modern Industrial Miracle:
medical care,
laundry, haircuts, °hly 40%; while the price index
7%-Cent Steel!
rent, and so on—had" risen sub- of a11 commodities had
gone up
0
thP*ppntrJrvm
stantially. And to illustrate the 2% times as much; food
products,
1on%
tn hrin^
minor role that
industrial prices 3% times as much, and farm prodhave played in this
picture, the ucts more than four times as much

non-things, such

Was

it was the

ago,

day is really one halt a penny. So
the price of steel has really gone
little m terms of an unshrunken dollar. It is mainly that
the value of money has gone down,

up very

—

but

years

biggest corporation America
ever seen up to that

household

crss's&TSSg
that the price of

created, 56

that each penny spent for steel to-

go into
automobiles, mo tns'
'
actual matter of value per pound?
appliances, tin cans, !
And so if we are going to inI'll leave it to you; but one
thing
roofing and siding for buildings yestigate steel prices at this hear- seems
crystal clear to me; that
and various wire
products such as ln&> by all means let us investigate when viewed in its true
perspecProfessor Ruggles
has shown— nails, wire netting and fencing.
steel prices; but in so doing let us tive, the price of steel is amazthat the price of the
Now remember,
things which
please, that at n1ot delude ourselves or anyone ingly low; for steel is not only the
people bought during this period thiq ti.np <5tppl nripoc wArp ni
else into the notion that we are cheapest, by far, of all the comare

•^his

Leis

look at the record:
.When United States Steel

means

sarily higher than that of the
older-type carbon steels, it may
actually represent a lower cost to
the purchaser.

fiahu efiwt
cost of
of liv¬
fiable
liveffect imon
upon the
the cost

qle principal victims of inflation.
was

That

cents.

than

strength and alloy steels, is

the

nor any

ever

fvisc-ernibleMdeidi-

industrial population of
America,
the steel industry has been one of
jt

industry

steei

the facts?

aie

profit*?

The truth is, of course, ^hatduring these 17 years, the value ot
the dollar has; shrunk to slightly
less

that

not

assumption.
Does
United
States Steel really possess
that
kutdpower
Does
actually
get tneseiaouious

quality—the change in the intrin-

learned from the stark statistical

were

among

industry

inflation

about

concerned

someday

But
What

concern.

important truths

may

per

the first of July—it is declared
to be a matter ot grave national

for

pajr>?, little more than the preceding industry did, and the nex.t
industry' must then ;pay a, little
ill ore
than that.
And third, we

increase

three years put together. We

hope

loss

sets the wage
pattern in America; for the post¬
war
wage
pattern has been ,a
never-ending spiral in which each
industry, in its turn, is called on

3% times

total

behind.,

total

three

nemier

World War period; and
interesting'to note, in pass¬
ing", that Itb'is 14%% rise in that
year was more than

far

widely understood. Hithat

First

not

was

that

one

had fallen

ever,

An
the previous year, 1947, the
Cost of Living Index had jumped
14%% above the level of the year

the

cent

one

contrary

withstanding.

,This "noble experiment," how¬

1? 1948j to be exact—United States
Steel tried to lend what weight it

our

pay

011

peashooter.

That

might

later, we had to reprice action, increase
our workers, and try
catch up with the parade that

the

perhaps the most conclusive

before.

months

scind

$5,000-a-year budget.—
enough to buy one

skvvvard

«,

train with

ree

this question is to be
found in the records of U. S. Steel
itself. Several years ago—on
May

estab¬

•

1%.

ex-

even

evidence

' 1

assump¬

national folk¬

our

Now what

been

.facts,

assump-

tions, however long those
tions

not

But

committee

4/100

considerably less than

21%; while the price
gone

finf wnr?n«

rising price of services—or
non-commodities, if you will. Thus
since 1951, he says, the price of

commodities has

Kept soau

Living Index has resulted from

happened?

In fact, the recent steel price
increase would affect that budget

the

—has risen

C)i

Thursday, August 22,
X957

,..

way it reaps fabulous
profits
public interest to the

just three-tenths
pound—as it did

Gf steel moves up

"Noble Experiment"

Other unions
demanded another big round ot
and
got them,
wage
increases
Other companies had to
raise
mices to oav fo- them. Our costs

steel is overwhelmed by the price
movement of other goods and
services which make up the avcrage family's budget.,

people

fect upon the
book

From
W"at

of the prod-

ucts—or commodities—that

Learning Three Important Truths

Victim
V IV41111 VI
Or AlBUUIlVai
IXttlAllOlt

recognize

effect
But when the price

inflation.

inevitable

the

this

that

all

and

cents-

em-

n.,r

pluyees.

most

and Financial Chronicle

The Commercial

(816)

Let

us-

not

vigorous

that United States Steel
does not become that
scapegoat!
see

All

With

Kinds

forget, moreover, that
successful as U. b.
---

and

Steel's competitors have been,
are

titlon which
steel.

the only

means
we

they

conipe-

must meet in

selb

American

wage

With

ligh as those
steelworkei s
comfinnn«"

Clague,

who

U, S. Commisof Labor Statistics
for

cioilcr

years,-must

many

regarded

our

leading expert- on. matters
pertaming tothc Cost of Living Index
—-or the
Consumer Price Index, as
-

it is

called.

now

•

In
August of
Clague said that

year,
Dr.
rise in steel

prices has only a
"negligible" efrect upon the Cost of
Living Index
because the amount of
steel in the
that

"ofbourse"i<Tthr»

matter.

All

American
in

son

vear

snend

that
for

the
steel

smMl in commrito their total exDenditures
fnr

that

the

any
8"y

other

charge
a"=e
,

thinac

fhe
the

everything

for

which—if

almost
our

everything

uno,,

nrice

pur-

to express

action

would

mountains of

and

men,

materials gathered from many parts of the
world,
It seems to me that in
raw

compari-

son

with

almost

everything

else

Rut

QiCr,

stands

And how much has the
price of
steel gone
up since this broad cy-

cle

1940?

inflation
What is the

the

began
sum

price increases

b^ck

morning, I

—1—

—

our

unchallenged

that

have

of the past

made it clear
During this same period, other
iwages continued basic necessities of life have also
"
pnue. creaa. ior
DrlXrisen
t
in price.
Bread, for example,

gone up 11 cents

wage, butter

cents, and

per pound:
round

steak

seems

siderably cluttering
scape of

proper

One

the

these

that

the.
to

this

Beyond that, too, is the

con-

num.

land-

persistent

nnces
prices

scribed
durable

here.

what

believe,

levels"; and that

pipe
uses.

are

and

for

bodies.

CJ!

contend

hundreds

use

experiment-

fiber-gDss
The

steel

^against

of ti'

'
'
glass,
paPei
and other subs ances. In the con;
strurtion
must vie with
cans

manufacture

Detroit has been

automobile

de-

this

Plastics

produce for the manufacture

unen-

Thus aim

striving mightily to repia

ing with the

boost

have been

can

against steel in the

no real competi-

power" which enables

tainers.

assumptions is
big corporation, like United

tion; that it thus enjoys "monopoly power" or "concentration of

lis
its

intense
from
hos
used f

steel in the automotive
mal.
the building industry, and m

unfounded

Steel, has

products' that

substitutes for steel.

understanding.

most

competition that steel fares
other industries producing
produciru a

record,

the

this com
;"tn oU
heavily into out

market.

impelled toi discuss

ing

—A

petition has cut

ouf'profits,

statement 1 here

in certain product lines,

years

*——*
facts
about

and

total of all

SSS our pnee cut
W?uld,haye
and grant^

+K~
the

prices

our

and

11 uin

(

today after

inflation

costs,
But

jytntiu 11

occurred bi steel in all
•+

^MVUVV-J

A-cent steel must be re- a
WG buy
?u/ 77U/+"cenf
steel must be re- a couple
couple of
of other
other free-wheeling
£aId<f,.a? miracle.
so.mething of a modern assumptions that have been standindustrial

reduction In fhe nolt^of |lyear® put togeth^? Why, about States
4*,*4 cents pei pound.

tn'ml-o

.l?at

^b'eds of thousands,

"beneficial effect through-

u„v

PMCe 0f

nil

power of the dollar."

livin« "
w

people will not be served

Mr. Fairless went
the hope that our

tion

buy.

further lowering in the

chasing

have

men

permitted to
higher prices

Certainly the best interest

thoiv

to avoid further! increases

costs,

occur—must result in

ancl

oftoiSM Inv
of

rrnv

the'money

people

power

last
a

erativeiy

competes

Number 5666

186

Volume

The Commercial and Financial Chronicle

...

pre-stressed concrete, wood, ma¬
sonry, slate, asbestos
and other
materials too numerous to men¬
tion. And always it must compete
against other metals such as cop¬

magnesium and

bronze, lead,

per,

on.

let no one suppose

that the

of any steel company
unresourceful .in protecting
their own interests. They will buy
their needs from the company best
able to compete for their patron¬
age
in terms of price, quality,
service, dependability and avail¬
ability. And in the end, they alone
customers

are

;

American

will decide—as the

always

tomer

cus¬

does—which

com¬

which

shall,

panies

shall

wither,

which -.shall survive and
shall die. ) Theirs is the

which

grow,

still it, is assumed that big

But

companies, like U. S. Steel, have
some mysterious and undiscovered
to reap fabulous profits at

power

customer's expense.;. And that,
too, is a myth—a carefully culti¬
vated and widely' exploited myth
which is perpetuated very simply
by those who decry the total dol¬
the

of
big
companies,
relating those profits to
volume of sales, increased invest¬
profits

without

anything else that would
give them meaning.
ment,
So

hear that Mr. X made

business last year,

while Corpora¬

tion Y gouged a billion dollars in

profits out of its customers.

But

who

Mr.

bothers

the

business

total

this

"Fortune"

magazine

article

will completely shatter the popu¬
lar
illusion
that
big companies
have

been

fattening their profits.
Taken as a group the 500 largest
companies of this year increased
their

profits

levels

all

the

other

tions—all
did
—

2 '■> %

over

the

year's top

500;

but

industrial

corpora¬

last

the

not rank

littler

ones

the first 500

among

increased

their

which

profits,

20%.
light, of these facts,
therefore, it is pointless to argue
that
big, profit-hungry business

group, by
In
the

has

been

responsible for the

re¬

inflation.

cent

ures—it

that

to
sole

$10,000 in it; while Cor¬

of 30%

Which

them,

investment.

his

then,

made

the

fabulous profit?
I

Now

course,' Mr.
member of this

know,

Chairman, that no
Committee, nor of

staff,1 has

its

intentioii whatever of distort¬

ing the profits of tJ. S./Steel or
any' other compariyf but in view
of the widespread misrepresenta¬
tion
that has occurred in
other
I have used this illus¬
tration to emphasize the necessity
quarters,
of

measuring profits
meaningful terms.

always

those

that

other

corporations.
"Fortune" magazine
published a list of the 560 largest
manufacturing companies in
Las month,

America; and it ranked them ac¬
cording to size on the basis of the
dollar values of their sales
last
.

ing wage costs and our slowlyrising output per man hour. Only

to these

time

our

part, we raised our steel prices
by an average of 4%.
,!
This action of

denounced

sumptions, the myths, and the eco¬
nomic superstitions that I have

already discussed here; and from
assumptions it

these .convenient
was

little difficult for

often

blamed

pass

this ^committee "thatiuweii be

following

resist

thus

forced to
strongly. >

Well, let's look at that one for a

mbment.

our

place,

neither U. S.

been able to pass

glance

1940 will
Steel

nor

whole has
these rising costs

steel industry

the

a mere

profit rate since
as

along in their, entirety. We have
had to absorb a part of them. But
that, perhaps, is beside the
Five

in Last

Costly Strikes

Eleven

Th^i real

point.

Years

point is this: To en¬
regard as inflation¬

force what we

bothered to explain just

one

Took at this list, you
United States Steel in

formed for the total economy
for the nation.
*

Shattering

and

Popular Illusion

About Excessive Profits
how

But

has
Does

United

fourth
of

about

received

sales?

for

the

States

Not

all.

steel;'and daily the pressures

face the threat of govern¬
ment' intervention,
as
happened

may

rewards it
services?
Steel rank

five

percentage
It ranks in

sought

these

profits as

have

place on that basis. Well,
then, how about profits as a re¬
turn on invested capital, however
limited
the
usefulness
of
the
123rd

years

President

seized

our

ago
when the then
of the United
States

plants

grant

illegally and
the union, de¬

mands in full.
In

our

most recent

negotiation

year—after a five-week strike
—we signed a labor agreement.
It
was that
labor agreement which
foreordained
our
recent
price
in¬
measure may be.
Was it number
four on this hit parade?
No. I'm crease.
Under
that
three-year
labor
afraid not.
It
ranked
243rd
on
that basis.
And among the agreement, we hoped to narrow
companies which stood far above at least slightly the inflationary
it

both of these counts was

the

last

gap

between our rapidly-mount¬

long-range,
as

are

equipment in-order to
remain efficient and productive,
and to hold costs and prices down.
No

ders will

».

undoubtedly last beyond

is not

enough. For the future se¬
curity of the company, of the in¬
dustry, and of the nation, huge
new

reserves

Canada,

Wyoming and the Lake

Superior District illustrates. That,
too, is surely a part of our respon¬
sibility—a responsibility we share
with others in our industry."
'

the Jives and activities of the

citizenry has persisted throughout

history; and it still persists today

lar

have multi-million-dol¬

must

and well-meaning members plants to process
iron ore, and
Congress. But that doesn't make sintering plants to increase the
it a good thing to do nor prove .productivity'of our blast furnaces.
».
that abandoning freedom' iiV en¬
■

interest

the

Out of

the

people. It also occurs to me that
conscientious and overworked
gentlemen who are running this
•

Will

Come

all

ours.

interest" for

throw the baby out

with the wash-

water.
if the

popular thing to do
were always the responsible thing
to do, a businessman's lot would
be. a,much happipr one—and so, 1
suspect, would a Senator's. Tim re
is no doubt that the popular thing

for U. S. Steel to have done would

have been

And

center

research
•

believe.our new
at,. Monroeville,

evidence of .our
efforts to carry out that responsi¬
bility. In our laboratories there,
we
are
seeking to develop new
further,

Pa.,.:is

will withstand—as

that

steels

that

will

by atmos¬

generated

friction in the supersonic
the future. There, too,
engaged in a program of
fundamental research designed to
extend man's knowledge of the

the company,

and

its employees,
even; perhaps, the security of

the

nation.

But would

of these

our

that

have

our

obliga¬

shareowners, who are

widely assumed to be peonle of
great wealth—people who do not
really need their dividends any¬

metal twice

strong

as any now

existing in the world.

and many
$2,000. That

less than $4,500 a year,

of them had less than

U. S.
was

what they got from

Steel, you understand. That
their total income from all

taxable
more

So, the incomes
half of our stock¬

sources.

than

holders were less
wage we were
men

does

Socialist

much

our

country

this earth which

produces

now

t han

than the average

then paying to the

in our mills.

more (

company. —

Union

the

Republics

thought

—

steel
That

Soviet

provoking fact which no one in
our
industry or our corporation
can

overlook.

steel companies become un¬
popular because they are too big,

they may manage to survive it
somehow; but if they ever become
unpopular because they are too
small, it is quite possible that
none of us may survive it.
the

these

facts

question

thoughtful

the

commend

sideration

whether

was

con¬

committee

this

price action
in the

light

of these responsibilities, I

and all

the

not

our

"responsible" and

public interest.

t;:

■; /

;

f ;

•

Narda Microwave Corp.
Common Stock Offered
,

'■ f

■

offering of 90,000 shares of
stock (par 10 cents) of

common

made

publicly

Corp.

Microwave

Narda

The

being

Milton

and Michael

D. Blauner & Co. Inc.

Kletz

Co.

Inc.

nomic growth and security of

net

$3 ' per

/•"■'.•

•

proceeds from

will* be

used

bank

loans, for product-

ment

and

■

this fi-

to. retire
develop¬

research' program/'new

equipment'and'Tor working capi¬
tal

and

poses.1

general

/'■'

corporate
' "

;

pur¬

•

Giving effect to the sale of the
stock, there will be outstand¬

new

600,000

ing

common

stock.

The Narda Microwave Corp., in¬

corporated in New York on July 1,

the manufac¬

of microwave and ultra-high

electronic test
including a proprie¬
tary product line for communica¬

frequency

(ITHF)

equipment,
and

tion

radar detection systems,

television stations, microwave re¬

lay stations, and for
tion systems market.

the naviga¬

Quincy Cass Adds Two

making capacity so that the eco¬

this

(Special to Tiie Financial Chronicle)

be jeopardized
by the lack of steel. To play our
full part jn maintaining an ade¬

LOS ANGELES, Calif .-George
Kunitake and Dexter S. Ragatz

quate steel supply is—we believe
compelling
responsibility.

Quincy Cass Associates, 727 West
Seventh Street, members of the

nation may

never

—a

business,

and

there

That

better reason for our exist¬

our

have,

become

Pacific

Coast

affiliated

with

Stock Exchange.
<53S.

ence.

But

one

bilities

these

possible

by a profit-starved industry or
a

company

suffering from finan¬

cial malnutrition.
Too

Much

Too

then
a

termed

Joins Dempsey

responsi¬

of fulfillment

Little Steel?

fickle thing.
way.,
Shortly before World War Two we
But
a
survey which
we took
were critically examined in these
among
them four years ago
showed that more than
half of very halls for having too much
steelmaking capacity in what was
these stockholders had incomes of

not just

country

one

Beyond all that there is the
ever-present need for new steel-

Popularity

was

Today that charge can no longer
made against us—for there is

1954, is engaged in

strength of

but also the jobs of

earth—

States—could

ture

are

nancial

One

United

the

planes of

to rise,

tion to

great point of

nation

pheric
we

that

grounds

produce as much steel as our com¬
pany could. That, he said, was not
good—and we were then unpopu¬
lar with him.
/■'"

other metal can—the terrific heats

thus to

ties.

outside

The

permit its mounting
Jron atom, and, 10 discover —r as
uncompensated, and
scientists believe they may.— a
endanger not only the fi¬

costs

the fact that

important industrial unit, 'nabeing

sibility.:

moment, before

the

committee made

Country have troubles enough of research—regardless of how costly
your own as it is, HVithout' faking jt is-r-is also a part of our respon¬
on

Congress—we were

share.

of the

Metals
Future

com¬

Research

Superior

you

be¬

summoned

investigators. And counsel for the

otic

the

looked too big to some of the

plants

to¬

was

investigating

the

denounced

•

for the washing of
metallurgical coal; beneficiating

number of sincere, 'patri¬

is In

later, however

years
were

another

mittee

that we
are,
today,
building costly new facilities to
treat and upgrade raw materials
which are dwindling in quality.

plants
put

that

you

Beyond

impulse of governments, to
extend their powers ever farther

terprise

Only five

constantly being

are

discovered, evaluated and devel¬
oped as our work in Venezuela,,

The

the lifetime of any of the present
officers of our company. But that

by whom. '

among

responsibility.

our

that that

doubt

The potential supply of iron ore
available within this nation's bor¬

the rest of the world; nor
did anyone ask what kind of a
system is to be set up in its place

over

will

one

part of

envy of

—or

out

worn

steel

nations

assure

—when

inadequate depre¬

allowances, it is reinvest¬

substantial part of its profits

popular thing

fore

in the replacement of obsolete and

what

struck our plants

uponbus keep building up. And
ultimately—if we do not settle—

«■

ing

it is that is wrong with an Ameri¬
can
industrial system that is the

demands1, the union has been the responsible thing to do;
five times in the and would !it have been in the
will find
past 11 years; .and we have taken public interest? '
fourth place in size of sales.
It these costly strikes in an effort to
hold
the
line against inflation. Meeting Responsibilities Depends
stood third in assets and invested
Upon Extent of Profits
hardly
has
one
of these
capital. It also stood third in the But
You
see,
United States Steel,
total number of jobs it provides; strikes begun before there is a na¬
like
any
other enterprise, has
and fifth in the number of stock¬ tionwide demand that we settle it.
holders whose, savings have been Our customers must have steel or many responsibilities which must
their
plants.
Their em¬ be weighed not only in the light
invested in the enterprise.
Now close
of present-day pressures, but also
these
are
the
measures
of the ployees! face layoffs and loss of
in the light of long-range necessi¬
service which U. S. Steel has per¬ pay.
The government, too, must
Now if you

ciation

many

wage

ary

year.

rob

entirely apart from its ob¬
to
its 'Owners, United

In the face of

deadening hand of government

Now

In the first
at

other

short,

responsibilities to the nation

less

thus far been much

"irresponsibility"'land the "public

union

the

our

whole—responsibilities which

atfpck, no¬

increase-—the

will

that'-we

the midst of the

being,% presumably,

wage

supposition

meet

we,

States Steel has grave,

/"/%/

perhans we
ought to took into'this1 question of

by law from raising prices

barred

But

oilier countries of the world where

them along to our cus¬
And'it has- been suggested

tomers;

number

enterprise, than it has in

the

wa^e

easily

and

Should

ligations

serious in America, under freedom

It is said that we do not

fight against uneconomic
increases, became we can

the incomes

Peter to pay David?

jump to the conclu¬
Cdngress should subject

tion has

that U. S.
for

add

costs?

body stopped to. think that infla¬

wage

really

by the force' of law.
In

pie

"concentration

workers

terprises to price and profit con¬
trols—by the force of persuasion,

shrinking

how

aware, of course,

time.

basic industries and larger en¬

our

power" may have something to do
with rising prices, I would merely
suggest that perhaps you gentle¬
men
are
looking on the wrong
side of the bargaining tables.
am

our

der

controls has long been present. No

that

inflation.

very

the

all
Axis

the

or¬

of people to

So if it is the belief of this Com¬

Steel

effort at all for

all

subtract from their incomes in

—

sion that

understand

% I

Con¬

out-produce
in

gether.

being "ir¬ continuously taxing its financial
resources
and
the extent of
responsible" and contrary to the
United
States. Steel's-ability -to
"public interest." It signaled the
meet these responsibilities is di¬
launching of a concerted attack <
which
brought down upon our rectly dependent on the extent of
its profits. (*,'
heads all of the unfounded as¬

only 6% of the national income

mittee

fulfilling

gress and elsewhere as

by last year.

promptly

ours was

the floors

011

responsibility

Are

these costs

cover

1950, they had shrunk

costs per

our

people?

responsibility to them if

about a

was

total

our

hour; and to

man

clining value of those dollars of
profits. And whereas profits rep¬
resented 9% of the total national

So it is

V2 % increase in

What, then, is

figures show that the
total profits of all corporations,
after taxes, were $22.1 billions in
,1050 and that they have never
been as large as that since then
without even considering the de¬

progress.

history demonstrates

These

did rep¬

On July 1 of this year we faced
what our recent total wage-cost

inflation at all.

income

tell if what

can

resented

argue

have contributed

profits

show that

thought in mind,
let
us
see
how
the
profits of
United States Steel compare with
And with

it has increased from 64% to 70%.

corporation had a profit of $1,000
apiece find a 10% return oh their
money; While'"poor" Mr. X got
three times as much profit and a
return

impossible

owner

invested

has

and

point

out

And

poration Y is owned by a million
shareowners, each of whom in¬
vested
$10,000
in
it.
So
the
"greedy" owners of this "giant"

any

entire

profit levels can cause inflation.
Compensation of employees, of
course, lias risen by. $87 billion
during this same period; and as a
share of the total national income

that,' of course, is sinful, and un¬
conscionable, and un-American.

his

the

Mr. Chairman, a little study of
the facts as they are reported in

profit of only $3,000 on his little

that

company

Jin fact—in the
to regulate and to control,
light of the government's Own fig¬

power

lar

smallest

list—number 500.

(817)

by some

Calif'.*— Harry
Cottingham has become asso¬
ciated with
Dempsey-Tegeler &
LOS ANGELES;

Co., 210 West Seventh Street. Mr.
Cottingham
was
formerly with
Blyth & Co. In the past he con¬
ducted his own investment busi¬
ness

"mature" economy.

economists

popular,
months
us:

and

yet within a matter
Pearl
vou

Harbor

was

uoon

will- recall how im¬

portant that supposedly excessive
steel capacity was to all of us
and
how
the plant* of United
States Steel were called upon to

in Pasadena.

With Eastman Dillon

economists

With those
definitely were not

Tegeler

(Special to The Financial Chronicle)

LOS ANGELES,
D.

Burgener

ated

with

Securities
Boulevard.

has

Calif. —Robert
become

Eastman

associ¬

Dillon, Union

^Co., 3115 Wilsbire
Mr.

Burgener

was

formerly with IIill Richarcs & Co.

The Commercial and Financial Chronicle

(818)
■'

Thursday, August 22,
1957

if INDICATES

Securities

Now

if Akin Distributors,

Registration

Inc.
(letter of notification) 90,000 shares of class A
stock, 90,000 shares of class B common stock
and 25,000 shares of preferred stock (all of $1 par value).

Bridgeview Towers Associates, Fort
July 25 filed $360,000 of participations in
interests. Price—$10,000 each participation
Proceeds—To buy an apartment building.

Price—Of class A and

—None.

Aug. 2

common

class B common, $1.50 per share;
preferred, $1 per share. Proceeds—To retire bank
loans and for working capital. Office—718 South Bould¬
er, Tulsa, Okla.
Underwriter—May be Walston & Co.,
and of

Tulsa, Okla.
if All American

Life

Casualty Co.

Aug. 16 filed 300,000 shares of
be

offered

for

(9/9)

common

subscription by

stock

(par $1)
stockholders

common

Lee, N. J.
partnership
(minimum).
Underwriter

Proceeds

Bascom

St. Louis, Mo.
Aug. 12 (letter of notification) 20,000 shares of com¬
mon
stock
(par $1).
Price—At market (estimated at
$13 per share). Proceeds—To Estate of Charles E. Bas¬
com, deceased.
Underwriters—McCormick & Co., Chi¬
Rope Co.,

111.; Stifel, Nicolaus & Co., Inc., St. Louis,/Mo.;
Schneider, Bernet & Hickman, Dallas, Texas, r

cago,

Aug.

Food Co., Inc.,, Aiken, S. C./
(letter of notification) 100,000 shares of com¬
stock (par 20 cents).. Price—$3 per share.
Proceeds

mon

payment of indebtedness, equipment, raw mate¬
rials, additions to plant, buildings, and working
capital.
Underwriter—None..

Daybreak Uranium, Inc., Opportunity, Wash.
7 filed 631,925 shares of common stock (par
cents). Price
At market (approximately 53 cents

May

Price—To

Herrin

prepay

Allyn

• Allied
Paper Corp., Chicago, III.
July 15 filed 21,000 shares of common stock (par $8) be¬
ing offered in exchange for outstanding common stock
of Allied-Albany Paper
Corp. on the basis of 5/22nd of

share of Allied stock for each share of
Allied-Albany
stock; offer to expire on Sept. 6. Statement effective

Aug. 7.

Exchange Agent—Continental Illinois National

Bank & Trust

Aloe

Co., Chicago, 111.

per

share).

Proceeds—To Estate

of Edith

Aloe, de¬

ceased.
Underwriters
Newhard, Cook &
Scherck, Richter Co., both of St Louis, Mo.
—

•

Alsco, Inc., Akron,

Ohio

Co.

and

(8/28)

June 28 filed 200,000 shares of

stock (par $1).
expansion, repay¬
ment of loans and for
working capital. Underwriter—
i iV a
1st;
VaruAlstyne,
Noel & Co., New York.

Price—$7

share.

per

Ameri
lerican

Proceeds

common

—

For

Income

Fund, Inc., New York
May 24 filed 500,000 shares of capital stock (par $1).
Price—At market.
Proceeds—For investment.
Under¬
writer—None. Burton H. Jackson is President. Invest¬
ment Adviser

—

Securities

York.

Cycle Research Corp., New

American Provident Investors
Corp.
Feb. 15 filed 50,000,000 shares of common stock

cent). Price—$2 per share.
Proceeds
capital and general corporate purposes.

For

—

(par

one

working

Office—Dallas,
Underwriter—Peoples Securities Co., J. D. Grey,
of New Orleans, John S.
Tanner, of Dallas, and C. L.
Edmonds, of Houston,, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.

Tex.

American Trailer
Co., Washington, D. C.
July 11 (letter of notification) $120,000 of
10-year
first mortgage bonds

at par.

Proceeds —For construction and
improvements,
payment of debts and working capital.
Office—5020

Wis¬

consin

Ave., Washington, D. C. Underwriter—Mackall
Coe, Washington, D. C.
if Amphenol Electronics
Corp. (9/10-11)
Aug. 21 filed 200,000 shares of common stock

(par $1).
supplied by amendment. Proceeds—For
acquisition program,
including acquisition of DanburyPrice—'To

Knudsen, Inc.

Underwriter—Hornblower

York.

Anchorage Gas

Oil

Weeks, New

Development Co.,

properties.
Office
505
Alaska. Underwriter—Grace C.
—

Barrow

St., Anchorage,
Tucker, 500 Wall St.,
Seattle, Wash.
Apache Oil Corp.,
Minneapolis, Minn.
July 22 filed 200
participating units in Apache °Oil Pro¬
1958.

Price—$10,000

develop and operate

other corporate
purposes.
made through

per

unit.

oil and
gas

Proceeds—To

ac¬

leaseholds; and

for

Underwriter none; sales to be
corporation and
APA, Inc., its subsidiary.

^ Belgium (Kingdom
of)
(9/11)
Aug 20 filed $30,000,000 of
external loan
15-year sinking
fund bonds due 1972
(U. S.

dollars).

Price—To be sup¬
amendment.
Proceeds — To finance various
public works projects
being undertaken by the
Belgian
Government.
plied

•

Cameron

June

Underwriters—Morgan Stanley
Smith, Barney & Co., both of New
York.

Why Settle
CHICAGO and

Mid America have
One medium—the

& Co. and
r

For Less?
over

1,400,000 stockholders.

Chicago Tribune—reaches

the

greatest

concentration of best
prospects in this active securities
market. It sells both investor
groups—professional buyer
and general
public. Why settle for less when one
medium
covers the field? For
the full

story, call the

Tribune office.

nearest

Chicago

s most

widely circulated

market table

Un¬

purposes.

Co., Cincinnati, Ohio.

G_ Worth &

Caramba

■

Proceeds—To

(par. 10 cents)
and

July 12 (letter of notification) 120,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—For
machinery, equipment, inventory and working capital.
Office—701 Monroe St., Hoboken, N. J.
Garden State Securities,

Underwriter-

Super

10
per

Underwriter

Markets, Inc.

•

(9/9-13)

180,000 shares of 7% cumulative first pre¬
(par $10) :and 180,000 shares of common

stock

one

to be offered

common

share.

units of

one

Price—$10.10

pre¬

per

unit.
Proceeds—To acquire Big Ben
Supermarkets; for equipment and merchandise for five new

supermarkets; and
working capital and other corporate purposes; Office
—Glendale, L. I., N. Y. Underwriter—S. D. Fuller &
Co.,

for

New York..

Mokafe Corp. of America

Quality

Aug. 1 filed

ferred

selling stockholders.

Co., Seattle, Wash.,

Gilbert's

stock

Industries, Inc., New York

filed

Hearing scheduled for Aug. 27.

•

ferred

Co., Inc., New York. Stop order proceedings instituted.

;.?*

.•"//

Duke Power Co.

'»■•■/

•

(9/10)

T.~.

Aug. 8 filed :.$50,000,000 of sinking fund debentures due
Sept. 1,1982. Proceeds—To repay bank loans and for
new
construction.,

Underwriter—To be determined
by

com¬

if Carolina Pipeline Co., Greenville, S. C. (9/11)
Aug. 16 filed $1,050,000 of 7% subordinate interim notes

petitive .bidding.
Probable bidders:
Halsey,; Stuart &
Co. Inc.; The First Boston
Corp.; Morgan Stanley & Co.;
Stone & Webster Securities,

due

scheduled to be

Hoboken, N. J.

1963 and 42,000 shares of common stock
(par $1)
in units of $25 of notes and one share

offered

stock.

to
of

Price—To be supplied by amendment. Proceeds—

For

construction of pipe line.
Underwriters — White,
Weld & Co., New
York, and Scott, Horner & Co., Lynch¬

burg, Va.
^Carolina Pipeline Co., Greenville, S. C. (9/11) v
Aug. 16 filed 300,000 shares of common stock (par
$1).:.
Price—To be supplied
by amendment. Proceeds—For
construction of pipe line.
Underwriters—White, Weld &
Co., New York; and Scott, Horner & Co., Lynchburg, Va.
Chatham Oil Producing
Corp.
July 29 (letter of notification) 100,000 shares of 19 cent
non-cumulative convertible
first-preferred stock (par
30 cents).
Price—$3 per share. Proceeds—For oil devel¬
opment operations.
N.

Office—42

Underwriter—G.

York, N. Y.

Broadway, New York 4,
& Co., Inc., New

F. Rothschild

;•/

Uranium

Corp. '
May 14 (letter of notification) 600,000 shares of common
(par $1—Canadian). Price—50 cents per share.
(U. S. funds). Proceeds—For exploration
costs, etc. Of¬
fice—5616 Park Ave.,
Montreal, Canada. Underwriter—
Jean R. Veditz
Co., Inc., 160 Broadway, New York.
Cincinnati & Suburban Bell
Telephone Co. (9/3)
Aug. 2 filed 124,991 shares of capital stock to be offered
lor

subscription by stockholders of record Aug. 27, 1957

the

basis of

one

new

for

each

held;

rights to expire 011 Oct. 3, 1957. Price—At par
($50 per
share.) Proceeds—To reduce bank loans. Underwriter—
None.

American

Telephone & Telegraph Co. owns
proximately 30% of the outstanding capital stock.
Colonial

Aircraft

Corp., Sanford,
July 5 filed 248,132 shares of common

Me.

ap¬

stock

Proceeds—To

Comico Corp.,
Memphis, Tenn. (9/3-6)
May 2 filed 750,000 shares of common stock.

share.

Price—$2

Proceeds—To construct mill; for
payment on
mining leases and royalty agreement. UnderwriterSoutheastern Securities Corp., New York.
per

Consolidated Fenimore Iron
Mines, Ltd.
June 26 (letter of
notification) 150,000 shares of common
stock (par $7).
Price—At market (closing price on To¬
ronto Stock Exchange as of June
14> 1957 was $1.32 bid
and $1.85
asked, per

share).

Office—c/o Roy

penses.

treal,

Canada.

Proceeds—For mining

ex¬

Peers, 9 De Casson Rd., Mon¬
Underwriters—Thomason, Kernaghan &

Co., Ltd., Toronto, Canada, and R. P. Mills
Montreal, Canada.

Co., Ltd.,

if Consolidated Na+urai Gas Co. (9/17)
Aug. 15 filed $30,000,000 of debentures due*
Sept. 1, 1982.
Proceeds—For construction program.
Underwriter—To
be determined
by competitive bidding.
Probable bid¬
ders: Halsey, Stuart &
Co., Inc.; White, Weld & Co. and
Paine, Webber, Jackson and Curtis
(jointly); Morgan,
Stanley & Co. and the First Boston
Corp/ (jointly). Bids
—Expected to be received up to 11:30 a.m.
(EDT) on
Sept. 17 at Room 3000, 30 Rockefeller
Plaza, New York
20, ^T. Y.
Conticca

International Corp., Chicago, III.

March 13 filed
558,100 shares of class A

(par $1).

Price—$5

per share.

Proceeds

common

stock

discharge
current notes
payable, including bank loans, and
long
term debt in the total
sum of
approximately $1,030,000:
Cor new
equipment; and for working capital. Under¬
—

Allen Shaw &
Co., 405 Lexington Ave.,. New
17, N. Y.; and Shaw & Co., San
—

Marino, Calif.

Cougar Mine Development
Corp.
^
(letter of notification^ 560,000 shares
'of

March 15
mon

stock

(par

one

cent).' Price

—

Bids

Sept. 10. V-

—Tentatively
/
.

if Eagle Oil & Supply Co., Inc.,
Aug. 16 (letter of notification) 125,000 shares of
common
stock (par $1).
Price—$1.20 per share.
Proceeds—For
working capital. Office—77 Woodbine St.,
Quincy, Mass.
Underwriter—Pilgrim Securities, Inc., New York, N. Y.
El Paso Natural Gas Co.
(8/28)
5
Aug. 7 filed $60,000,000 convertible debentures due
Sept.
1, 1977 to be offered for subscription by common
•

and

common

stockholders

record

Aug.

26, 1957, with
Price—100% of prin¬

rights to expire on Sept. 11,. 1957.
cipal amount. /Proceeds—To reduce bank loans and for
construction program.
Underwriter—White, Weld & Co,
New York.
.'./
*///„•_',/////
„

El Paso Natural
Gas Co.. (8/28)

Aug.; 7. filed 100,000 shares of cumulative preferred
stock,
second series of 1957

(par $100).

Price—To be supplied

repay bank loans and for
construction program. Underwriter—White. Weld &
Co,
New York.
-

★ Electronics Investment Corp.
Aug. 15 filed three Systematic Investment Plans,
aggre¬
gating $15,000,000, for the accumulation of shares of this
Fund.

Underwriter

Fleetwood Securities Corp. of
America, San Diego, Calif.
if Eljo Oil & Mining Corp.
Aug. 12 (letter of notification)
250,000 shares of common
stock. Price
At par ($1 per
share). Proceeds — For
equipment and working capital.
Office
710 South
Fourth St., Las
Vegas, Nev. Underwriter—None.
Empire Sun Valley Mining
Corp., Jerome, Ida.
—

—

(9/3)

(par 100).
selling stockholders.
Underwriter—Glick & Co., Inc., New York.
market.

Corp.i

Received

by amendment., Proceeds—To

stock

York

pages

E. Hutton

300,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For exploration
and development program. Underwriter—R.

writers

GTIjxrajjfl QTribirar
America

Price—At

Inc.
July 24 (letter of
notification) 160,000 shares of common
stock (par $1).
Price—$1.25 per share. Proceeds—For
development of oil and gas

quire,

derwriter—W.

Chess

6%
(in denominations of $1,000 each),
120 warrants for common stock
and 1,500 shares of com¬
mon stock
(no par). Each $1,000 bond has detachable
warrants for 10 common shares at
$15 per share exercis¬
able at any time
through June 30, 1959. Price—Of bonds,

gram

ing capital and other general corporate

(A. S.)

Co., St. Louis, Mo.
Aug. 9 (letter of notification) 7,450 shares of common
stock
(par $5).
Price—At market (estimated at $37

be
supplied by amendment.
Proceeds—To
bank debt and other indebtedness and for work¬

man

—For

Office—Park Ridge, 111.
Co,. Inc., Chicago, 111.

expansion.

For'diamond

—

share).

REVISED

drilling 011 company's lands
working capital and other torpor.'
purposes.,. Off ice—83 Campfield St.,
Irvington, N. j
Underwriter—Roth & Co., Maplewood, N. J.

Calvert Drilling, Inc., Olney, III. (9/10)
Aug. 13 filed 250,000 shares of common stock (par $1).

Underwriter—A.

PREVIOUS ISSUE

ate

of record Sept. 6 at the rate of one new share for each
six shares held; rights to expire on Sept. 23.
Price—To
be supplied by amendment.
Proceeds — For

•

ADDITIONS

SINCE

ITEMS

prospecting expenses,

if Cus

Broderick &

and

•

com¬

50 cents per share.

Aug. 9 filed 340,000 shares
200,000 kh a res are to be

common

stock,

which

publicly offered at $3

per share
140,000 shares to stockholders of Sun Vallev Mining
Corp. at $1 per share.: Proceeds—For
exploration and
acquisition of mines; and for
working capital. Under¬

and

writer—For

public offer, John Sherry Co., New York.
Employers' Group
Associates, Boston, Mass.
(8/29)
Aug. 9 filed 88,761 shares of common stock (no par) to
*

offered for subscription
by common stockholders of
August 28 011 the basis of one new share for

record

each four shares
held,
—To be supplied

rights to expire on Sept. 17. Price
by amendment. Proceeds—For forma¬

tion

of life

of which
ates

and

insurance
company, 51% of the voting stock
will be owned
by Employees & Group Associ¬
the remainder

Insurance

Corp. Ltd.
Co., New York.

The

Employers'

Liability

Underwriter—Morgan Stanley &

•

Federal Insurance Co.
June 7 filed
400,000 shares of capital stock
ing offered in exchange for

(par $4) be¬
100,000 shares of Colonial
Insurance Co. of America
capital stock (par $10)
on
the basis of four
Federal shares for each Colonial
Share. Offer has become
effective upon acceptance by
holders of more than 95% of
Colonial stock and will con¬
Life

tinue to

and
including Sept. 20, when it expires. DealerManagers—The First Boston
Corp. and Spencer Trask &
Co., both off New York. Exchange
Agent—Fidelity Union
Trust Co., Newark, N. J.

★ Federal Steel Corp.,
Darlington,
Aug. 7 (letter of

Pa.

notification) 11,000 shares of 7% cumu¬
stock
$1

lative preferred stock
and 11,000 shares of common
in units of one
share of each class of stock. Price
per unit. Proceeds—For

ing capital.

additional; equipment and work¬
Richards & Co., Pittsburgh

Underwriter

Pa.

First National

—

Life Insurance Co., Phoenix, ArizJuly 29 filed 106,500 shares of common stock tPar
of which
90,000 shares are to be offered publi^Y al
16,500 shares to employees pursuant to stock, purchase

Number 5666

The Commercial and Financial Chronicle

Volume

186

options.

Price—To public, $12 per share. Proceeds—For
other corporate purposes. Underwriter—
;; ' /
' '
;
/. ■

...

None.'

Flag

Genie

(Whitney &

Walter

(Bids

(Albert

Proceeds—Tc
and to hold,
own, subdivide, lease, mortgage, exchange, bargain, sell
and convey lands and every character of real property

Curtis

New

Southern California Edison Co
(Bids

Steel

8:30

Preferred

Co.,

Reid &

Common

Gas Co

El Paso Natural

Paso

Natural

Sachs

(Goldman,

Bonds

bly of controls; and for other corporate purposes. Ad¬
dress—c/o Positronic Corp., 2572 Ridgemore Road. N. W.

Utilities, Inc

United

Peabody

•

17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1. 1971, with detachable

(Bids

Parking,

160,000

Pacific
(Offering

Comico

Inc.

for working capital. Office—c/o
5312 Glenwood Ave./ Youngstown,

Clements,

Underwriter—L. L. LaFortune & Co.,
;

General Telephone Co.

Edwin
Ohio

Las Vegas. Nev.

of California (8/27)

Aug. 7 filed 500,000 shares of

cumulative preferred stock

Price—To be supplied by amendment. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriters—Paine, Webber, Jackson & Curtis, Boston,
Mass.; and Mitchum, Jones & Templeton, Los Angeles,
(par $20).

Calif.

■./>

Corp.

18 filed 120,000 shares of 5.80% cumulative pre¬
stock (par $25), of which 92,120 shares are being
1 offered in exchange for the following outstanding secu¬
rities on a share-for-shai e basis, plus, in each case, cash

redemption premium for each such
share offered in exchange: 5%% and/6%
cumulative
preferred stocks of Durham Telephone Co., the 6%
cumulative preferred stock of Georgia Continental Tele¬
to

This offer will expire
on
Aug. 30, 1957. All shares not surrendered for ex¬
change will be redeemed on Sept. 12, 1957. The re¬
Continental

ern

Telephone

Co.

at par
Web¬
Curtis and Stone & Webster Securities

10:30 a.

(Bids

Hycalog, Inc.

(Auchincloss,
and

Southern
/ /

$300,000

Pacific Co

of^ one $50
Price—$100
per unit. Proceeds—To discharge short term obligations;
purchase merchandise inventory; and for working cap¬
ital.
Office
1022 18st St., N. W., Washington, D. C.
Underwriter—Whitney & Co., Inc., Washington, D. C.
(par 10 cents) to be offered in units
debenture and 20 shares of common stock.

Corp.; and

Blauner &■ Co., Inc.
shs.

--Bonds

Securities

(Offering

stock .(par TO

cents).vPriee—$2 r>*r share. Proceeds—To
Continued on page 36

(Tuesday)

Bonds or Preferred

Dilbert's

(S.

Krueger

Co.

Inc.)

Quality Super

(Monday)

—Common

(Wednesday)

Power Co
Debentures
(Offering to common stockholders—bids noon EDT) $35,156,760

Bonds

Pennsylvania Power Co
to

(Tuesday)

Weeks) 200,000 shs.

(Tuesday)

October 22

(Bids

(W.

Hutton & Co. )

Power

Duke

(Bids to

Roach

be invited)

(Hal) Productions

(Tuesday)

(S.

Fuller & Co.)

Louis County

$1,125,000

Bonds
Common

Scott & Fetzer

& Co.) 30.000 shares

(McCormick & Co.) 38,000

$250,000,000

invited)

(Tuesday)

Bonds

Co
11

a.m.

$28,000,000

EST)

Preferred

Ohio Power Co
(Bids

$7,000,000

EST)

a.m.

(Tuesday)

December 3

Bonds

Virginia Electric & Power Co

.Common

stockholders—to be underwritten

H. Walker

Ohio Power

(Bids

$50,000,000

National Bank

Telegraph Co._-Debentures

November 19

250,000 shares

—

(Bids

..Common

Common

Bonds

$50,000,000

EDT)

a.m.

American Telephone &

,—Common

Calvert Drilling, Inc

$8,000,000

invited)

Consolidated Edison Co. of New York, Inc

$800,000

Corp

!„Bonds

Consumers

October 29

September 10

$6,000,000

Oregon Power Co.——

(Bids

—

-Bonds

October 14

California

October

Common

$1,818,000

Blosscr & McDowell)

(Straus.

—.Bonds

about $40,000,000

be invited)

(Bids

Preferred & Common

(W. A.) Co—

(Thursday)

Terminal RR.—

Markets, Inc.
Co.)

Bonds

invited) $30,000,000

Iron Corp

Fuel &

(Monday)

300,000 shares

D. Fuller &

$50,000,000

of Indiana, Inc

(Allen & Co.)

Toledo

(Wednesday)

(Bids to be received) $10,000,000

stockholders—underwritten by A. C. Allyn

Colorado

217,286 shares

Corp.)

Life & Casualty Co

shares of common

Debentures
$25,000,000

$25,000,000

October

237.033

$18,000,000

EDT)

a.m.

September 9

(Offering

Corp.

(Thursday)

Inc

invited)

Debentures

$100,000,000

invited)

(Bids to be

Electric Co
Common
to stockholders—underwritin by Stone &

All American

Public Service Co.

—

Giant Petroleum

October

$7,500,000

Co.—

(Bids

stock

July 22 (letter of notification) 150,000

(Tuesday)

October 8

Equip. Trust Ctfs.

—

(Bids noon EDT)

•„

(Hornbiower &

of common

System,

(Bids

Common

Parker & Redpath; Milton D.
Hallowell, Sulzberger & Co.)

.——Bonds

Telephone Co

October 3

Gas

Columbia

—Debentures

to $10,000,000

(Monday)

(Bids to be invited)

shs.

(Thursday)

Johnson i

Amphenol Electronics

10-year 6%

October

Southwestern Bell

Bonds

Inc.

Silvray Lighting,

May 24 filed 1,480,787 shares of common

★ Genie Craft Corp. (8/23)
Aug. 8 (letter of notification) $100,000 of
aonvertible debentures and 120,000 shares

Bonds or Preferred

$8,000,000

September 30

Inc.; Aetna Securities
&

Roman

Webster

Invited)

(Bids

-—Common

$12,000,000

_ —

Reed & Co.,

(Keith,

New York

Stone & Webster Securities Corp.

(Wednesday)

(Bids noon EDT) $17,000,000

(Offering

stock (par $10)
convertible preferred stock
(par $50) which were offered in exchange for common
and preferred stocks of Peninsular Telephone Co. on the
basis of 1.3 shares of General common for each share
of Peninsular common, and one-half share of General
preferred share for each share of Peninsular $1 pre¬
ferred, $1.30 preferred and $1.32 preferred.: Offer to pre¬
ferred stockholders expired on Aug. 14 and that to com¬
mon
stockholders of Peninsular extended to Sept. 13.
Dealer-Managers—Paine, Webber, Jackson & Curtis and

Gulf States Utilities Co.—

September 5

Tampa

170,000 shares of 5.28%

tuu.OOO

Commonwealth Edison Co

Corp., both of New York.

and

Common

Invited)

Northern Illinois Gas Co

Transmission Co., Ltd.__
Debentures
(Eastman Dillon. Union Securities & Co.) $25,000,000

ber, Jackson &

Telephone Corp.,

September 25

$299,999

CDT)

Bonds
$15,000,000

invited)

.Utah Power & Light Co

Westcoast

Tampa Electric

General

(Bids

Common

$40,000,000

& Light Co

Power

«Bids

and Allen & Co.) 200.000

Gas & Electric

Louisville

Utah

—Bonds

Inc.-

Dairies,

Witter Sc Co.

(Dean

maining 27,880 shares were offered tq? the public
and accrued dividends.
Dealer-Managers—Paine,

•

.—Common

September 4 (Wednesday)

the

phone Co., and the 5!'2% cumulative preferred stock of
South Carolina Continental Telephone Co. and of South¬

.//•'.

Stetson, Inc.) $298,000

Mandell Co.)

(Joseph

ferred

equivalent

Common

(John G.) Film Corp

Stratford

invited)

(Bids to be

Corp.._-Preferred & Common

Colin

(Winslow,

Bonds

Niagara Mohawk Power Corp.—

Quaker State Foods Corp.Preferred
(Childs, Jefferies & Thorndike, Inc. and Syle & Co.) $91,540
Scott-Paine Marine

(Tuesday)

September 24

Northwestern Public Service Co...
/ '
;
(Bids 10 a.m. CDT)

Bonds

$20,000,000

invited)

(Bids to be

$1,500,000

Empire Sun Valley Mining Corp
/ '
'
" (John Sherry Co.) $800,000

Co. of the Southeast

July

1,822,523

_____

Securities Corp.)

(Southeastern

Foremost

General Telephone

Bonds
$35,000,000

Northern Indiana Public Service Co

(Tuesday)

September 3

(letter of notification) 240,000 shares of common
stock (par $1), Price—$1.25 per share. Proceeds—To re¬
tire outstanding debt; for expansion of subsidiary cor¬
F.

$4,260,000

(Monday)

Power

Consumers

...Common

Telephone & Telegraph Co
to
stockholders—no underwriting)

Cincinnati & Suburban Telephone Co.---Common
(Offering to stockholders—no underwriting) 124,991 shares

June 18

poration and

Equipment Trust Ctfs.
EDT)

noon

(Bids 11:30 a.m. EDT)

shares of participating
preference stock, to be offered in units of $500 of deben¬
tures and 40 warrants. Price—$500 per unit. Proceeds—
For expansion and working capital.
Underwriter—None
named.
Offering to be made through selected dealers
Application is still pending with SEC.
General

(Thursday)

September 23

(Saturday)

August 31

Bonds

EDT) $20,000,000

noon

(Bids

Aug.

to-purchase

$12,000,000

(Wednesday)

September 19

Kidder,

Debentures

Co.)

Norfolk & Western Ry

Common

Debentures

EDT) $30,000,000

a.m.

September 18

Morgan

—

Pierce

$7,000,000

Pacific Power & Light Co

312,506 scares

Co.i

__Preferred

Merrill Lynch,

and

Peabody &

(Kidder,

///

(Tuesday)

& Rubber Co.

General Tire

Common

stockholders—underwritten

(Offering

Credit, Inc., Washington, D. C.

Common /
$3,000,000

underwriting)

Beane)

(Bids 11:30

Common

„—

$17,500,000

Natural Gas Co

Consolidated

$650,000

(Offering to stockholders—underwritten by
Stanley & Co.) 88,761 snares
■«

Beane)
-

Co.

Fenner

Employers' Croup Associates

Underwriters—Armstrong & Co., Atlanta.

Debentures
&

Fenner

Peabody

(Kidder,

(Thursday)

August

Pierce,

September 17

Co., Lehman Brothers and
& Co.) 400,000 shares

Peabody

Kidder,

(Monday)

California Electric Power Co.__

Productions-

Walt Disney

Bonds
$40,000,000

invited)

stockholders—no

(Offering

—-Debentures

___.

Jaffray & Hopwood)

(Piper,

/ /

Water

Haven

New

$10,000,000

Public Service Electric & Gas Co
(Bids 11 a.m. EDT) $60,000,000
Texota Oil Co

Lynch,

-Preferred

Co...__

Gas

(Thursday)

Cylinder Gas Co

(Merrill

Debentures

(White, Weld & Co.)

$110,000,000

September
National

$60,000,000

(White, Weld & Co.)

(Bids

200,000 shares

Noel & Co.)

Alstyne,

(Van

Debentures

$30,000,000

Debentures

Electric

Philadelphia

Common

Alsco, Inc.
•

by The

Merrill Lynch, Pierce, Fenner

and

EeanC)

September 12

(Wednesday)

August 28

Common

Corp

(Lehman Brothers

86,709 shares

Inc.)

Debentures
$30,000,000

Corp.)

Bonds

Improvement & Forge Co
(Pulton,

Boston

Jersey Bell Telephone Co.

Sperry Rand

Mitchum

$40,000,000

PDT)

Preferred

$1,500,000

May 23 (letter of notification) 100,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—To es¬
tablish production facilities for manufacture and assem¬

warrants

First

(Bids to be invited)

and

300,000 shs.

Co.)

common stockholders—underwritten
First Boston Corp.) 380.312 shares

(Offering

$10,000,000

Templeton)

Jones

Common
Scott, Horner &

and

Co.

Lehigh Portland Cement Co

(Tuesday)

Jackson

Webber,

(Paine,

(The

$300,000

of California

General Telephone Co.

^ Foremost Dairies, Inc., Jacksonville; Fla. (9/4)
Aug. 16 filed 200,000 shares of common stock (par $2).
prjce—To be supplied by amendment. Proceeds — To
Grover
D. Turnbow, President,
who is the selling
stockholder; Underwriters—Dean Witter & Co.. and Allen
& Co., both of New York.
.
General Aniline & Film Corp., New York
Jan. 14 filed 426,988 shares of common A stock (no par)
and 1,537,500 shares of common B stock .(par $1). Pro¬
ceeds—To the Attorney General of the United States
Underwriters—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton Corp. (jointly); Kuhn, Loeb & Co., Lehman Brother!
and Glore. Forgan & Co.
(jointly). Bids —Had been
scheduled to be received up to 3:45 p.m. (EDT) on Ma>
13 at Room 654, 101 Indiana Ave., N. W., Washington 25.
D. €., but bidding has been postponed./
/./
General Automatics Corp., Atlanta, Ga.

Weld

Lehigh Portland Cement Co

Common

August 27

shs.

Pipeline Co

$206,250

Inc.)

-Note & Common
Horner & Co.) $1,050,000

42,000 common

(Singer, Deane & Scribner)

Common

Co.,

...I

and

$30,000,000

Barney & Co.)

Hagan Chemicals & Controls, Inc

.'.Equip. Trust Ctfs.

(Kesselmdn & Co.)

•

Caroline
(White,

Strato-Missiles, Inc.

Underwriter—None.

General

debs,

$3,555,000

EDT)

noon

(White, Weld & Co. and Scott,

(Monday)

Seminole Oil & Gas Corp

Trust. Price—$1,000 per certificate.
acquire by purchase, lease or otherwise,

■

Carolina Pipeline Co

Bonds & Common

Central RR

New York

Bonds

and Smith,

Co.

(Morgan

units

(Jim) Corp

Stanley

debentures and 120,000

of stock in

August

the

Ga.

$100,000

(Carl M. Loeb, Rhoades & Co. and Prescott, Shepard & Co., Inc.)
$2,425,000: ■

of stock. Price—$1,010 per unit. Proceeds—
To enlarge and continue a marine yacht, basin serving
substantial and growing local communities. Office—
Long Beach, St. Leonard, Md. Underwriter—None.
Florida Trust, Pompano Beacn, Fla.
March 4 filed 850 certificates of beneficial interest in

Atlanta,
Ga.
;

Inc.)

Co.,

(Wednesday)

(Kingdom of)

Belgium

Common

Debentures &

Corp.___
shares

100 shares

Craft

September 11

(Friday)

August 23

Harbor Corp.

18 (letter of notification) $250,000 of 10-year 6%
cumulative income subordinated debentures due Oct. 1,
1967, and 25,000 shares of class A common stock (par 10
cents) to be offered in units of a $1,000 debenture and

Aug.

CALENDAR

ISSUE

NEW

expansion and

(Bids

be Invited)

December 10

(Tuesday)

Indiana & Michigan Electric
11

(Bids
-

•

a.m.
':

$20,000,000

Bonds

EST) $20,000,000
\

The Commercial ancl Financial Chronicle

(820)

Continued

fmm^ageJS

^ Lehigh Portland Cement Co*

pay

225 East 46th St., New York,

To repay

bank loans and for expansion and working capOffice—Allentown, Pa.
Underwriter—The First

ital.

Boston

^ Grand Canyon Life Insurance Co.
Aug. 15 (letter of notification) 33.750 shares of common
.stock (par SI) to be offered to policyholders 011 the basis
of one share for each S2 dividend received.
Price—$2
per share.
Proceeds—For capital and surplus accounts.
Offiee—3520 North 16th St., Phoenix. Ariz. Underwriter
—None.

•••"•

■

(

"••

••'

•

.;/..

Great Lakes Natural Gas Corp.

15 filed 779,393 shares of common stock (par 50
cents) to be offered for subscription by common stock¬
holders of Great Lakes Oil & Chemical Co. on basis of
one-fourth share of Natural Gas stock for each share of
Oil & Chemical stock held with an oversubscription

;7-." 7.

acquire oil and. gas leases. Office—1216 Oil
Bldg., Spokane, Wash.
Underwriter—

X-./f.-V-'/ .i?r

v '

^ Guardian
Corp., Baltimore, Md.,/
Aug, ,16 filed 300.000 shares of common stock, of which
200,000 shares are to be publicly offered and the remain¬
ing-100,000 shares reserved for issuance upon exercise

Chemicais & Controls,

Inc.,

Pittsburgh,

construction

For

—

Singer,

^Highland Telephone Co.
Aug. ?15 (letter of notification) 2,350 shares of
(no par)

tures due

and

1972.

debentures,

par

Holy Land

convertible deben¬
per share; for
(in denominations of $500 each).
bank loans and for capital improve¬

St., Monroe, N. Y.

Import Corp.,

Houston, Texas

working

capital, etc.
& Co., Houston, Tex.

warrant for each

Underwriter—Benjamin

units of

costs, etc.

chase

equipment. Office—505 Aero Drive, Shreveport,
Underwriters—Keith, Reed & Co., Inc.,.Dallas, Tex.;
Aetna Securities Corp., New York, N. Y\; and Roman

(letter of notification)

150,000 shares of com¬
Price—$2 per share. Proceeds
equipment, raw materials ancl working
Office—649 Broadway, New Y'ork, N. Y. Under¬
(par 10 cents).

writer—None.

if Inland Wes+ern Loan & Finance Corp.

Aug.

mon

Polders of

special participation life

tracts issued by Commercial Life Insurance Co.

Price

—

$1.50 per share. Proceeds—For operating capital for two
subsidiaries and to finance expansion program. Office—
Phoenix, Ariz.

Underwriter—None.

Englewood, Colo.
.»
July 29 (letter of notification) 100,000 shares of common
"•stqck (par $1). Price—$3 per share. Proceeds—For
oper¬

ation

insurance company in Colorado
through its

Underwriter—American Underwriters, Inc

Englewood, Colo.
Jaraf,

Inc.,

WasSng^o**, D.

July 30 filed $10,000,000 of 542-8%
sinking fund deben¬
tures due Aug. 1, 1972 and
100,000 shares of common
stock

(par z0 cents) to be offered in units
of a $1,000
debenture and 10 shares of
stock, or a $100 debenture

and

one

per

share of stock.

Price—Par

for debenture, plu^
share for each 10 shares of
Stock. Proceeds—For

construction of

shopping

center and other
capital im¬
provements; for retirement of present
preferred

shares;
working capital, etc. Underwriter—None.*
'
* Kru-ger (W, A.) Co,,
Milwaukee, Wis. (9 9-13)
Aug. 12 filed 100,000 shares of
and loi

common

^m~f8per
Share/ of
Prweeds-For
plant, for payment
equipment

stock

(par $5)

construction of
notes,

etc.,

DoweneCWca|o, ™erWriter-StrauS. Btae,

* Mortgage Clubs of America,
Ma«s.
!

Inc., Springfield,

Aug. 19 filed $.1,000,000 of participation units in

if International Insurance Investments, Inc.,

subsidiaries.

•

and

new

for

& Mc-

second
mortgages of real estate to be.offered for public sale in
units of $100, plus a sales commission of

$10

per

unit

to the
company. Proceeds—To be invested in small loans
secured by second mortgage on home
properties. Under-,
w

riter—None.

units
and

•

one

common

per

unit.

and

Proceeds

other corporate purposes.

(9/3-4)

three

—

For

class

Municipal Investment Tru^t Fund, Inc.
May 9 filed 5,000 units of undivided interests
ipal Investment Trust
Fund, Series A.

investment.

(N.

in Munic¬

Price—At market

Sponsor—Ira Haupt

New York.

Y.)

Underwriter—None.

Sep.t.r 1,« 1987.

bonds due
and for
Underwriter—To be determined

Proceeds—To

construction program.

iepay bank loans

by competitive bidding. Probable bidders: Halsey, Stu¬
& Co. Inc.; Eastman
Dillon, Union Securities & Co.
and Kidder, Peabody & Co.
(jointly); Lehman Brothers
,and Bear, Stearns & Co.
(jointly); Blyth & Co., Inc. and
White, Weld & Co. (jointly). Bids—Tentatively expected
art

to be received up to noon

(EDT)

Sept. 18.

Pacific Telephone &
Telegraph Co. (8 31)
July 26 filed 1,822,523. shares of common stock

offered^ for subscription by
28, 1957

the basis of

share for each six shares

Plymouth Fund, Inc., Miami, Fla.

5001
.

„

500,000

shares of capital stock (par $!)•
Proceeds—For investment Under¬

market.:

writer— Plymouth Bond & Share
Corp.; Miami,
Joseph A. Rayvis, also of Miami, is President.

shares
in

units

$510

stock

poses.-

Transformer

debentures

common

of $500
per
at

unit,
$102

$100

per

unit.

mdebtf^nes*?

Office—2218

(par

10-year

1, 1967 and 29,400
cents) to be offered
and 50 shares of stock

debentures

$294,000

due- June

stock

Fla.

Corp.

(letter of notification)

standing

West Broad St
•

filed

convertible

sharing retirement plans!
Proceeds—For investment. President
,

Price—At

Precision

to be offered trustees of
profit

to
Pro¬

held; rights

($100 per share).

90.54% of the voting stock of Pacific T. & T. Co.

Investment Trust for Profit
Sharing/ Retirement Plans, Inc.,
Richmond, Va.
March 19 filed 50,000 shares of
capital stock (par $1)

par

ceeds—To repay advances from
parent.
Underwriter—
None.
American
Telephone .& Telegraph i Co. owns

June

—

Price—At

stockholders of record Aug',.

one new

Mutual

Office

shares.

working capital

Pacific Power & Light Co. (9/18)
V
Aug, 13 filed $20,000,000-of first mortgage

Feb.

Richmond, Va.-

337, Crescent City, Calif

—

Colo.

Coleman Andrews.

Box

Old American Life Co.,
Seattle, Wash.
July 22 filed 15,825 shares of class A stock (par $10) and
3,165 shares of common stock (par $10) to be offered in

expire Sept. \3G.
stock

(par 50 cents). Price—$1 per share. Proceeds—For ex¬
ploration and related purposes, including construction of
a mill.
Underwriter
Investment Service Co., Denver,

Prife%"At
raarket—T

of common stock and/or
preferred stock

Mount Wilson Mines,
Inc., Telluride, Colo.
June 24 filed 400,000 shares of class A
common

Proceeds—For

—

to 10 a.m. (CDT) on Sept.. 3 or Sept. 4 at
1705, 231 So. La Salle St., Chicago 4, 111.

Price—-$260

processing and selling of gravel. Office—203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,
Philadelphia, Pa.

con¬

;

Utah.

Co., Salt Lake City, Utah.

roadside restaurant and gas station.
Business—Has been

Plywood,' Inc.

Oil Ventures, Inc.
May 13 (letter of notification) 2,500,000 shares of com¬
stock.
Price—At par (10 cents per share). Pro¬
ceeds—For development of oil and gas
properties. Office
—725 Judge Bldg., Salt Lake City, Utah. UnderwriterMid America
Securities, Inc. of Utah, Salt Lake City,

Underwriter—None.

motel,

endowment

Corp. Bids—Tentatively expected to be
Sept. 11.

mon

16 filed 2.500,000 shares of ,class A non-voting com¬
stock (par $1) to be offered for, subscription
by

Underwriter—

received up
Room

Monticello Associates, Inc.
Feb. 18 (letter of notification) 300,000 shares of
common.<■
itock. Price—At par ($1 per share).
Proceeds — For capital expenditures, * including constructioa of

Co.

Halsey, Stuart & Co. Inc.; A. CI Allyn & Co. Inc.; Merrill
Lynch, Pierce, Fenner & Beane. Bids—Expected to be

class A share and 24 class B shares, which

D. Richard Moench &

Telegraph

Aug. 2 filed $1,500,000. of first mortgage bonds due 1987.
Proeeeds—To repay bank loans. Underwriter — To be
determined by competitive bidding.
Probable bidders:

additional electronic test
equipment, shop ma¬
chinery, and to increase working capital. Office—2604
South State St., Salt Lake City, Utah.
Underwriter—

—For machinery,

Northwestern Public Service Co.

chase

if Industro Transistor Corp.

Underwriter—None.

Associates, Inc.
July 16 (letter of notification) 60,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—To
pur¬

& Johnson, Fort Lauderdale, Fla,

011

Address

ment.

be sup¬

Montek

Pa.

Telephone

if Northern California

ations, etc., and 8,000 are to be offered for subscription
by existing stockholders, on a pro rata basis. Price—$75
per unit.
Proceeds—For development and exploration

subscription by stockholders. Price — 99% of princi¬
pal amount. Proceeds—To retire bank notes and to pur¬

(9/11)

Aug. 8 (letter of notification) *2,000 shares of 7% noilvoting cumulative preferred stock. Price—At par ($100
per share).
Proceeds—For logs and timber and equip¬

shall not be separately transferable until May 1,1960. Of
the units, 14,474 are to be issued in exchange for or con¬
version of working interests in joint lease acreage oper¬

Hycalog, Inc. (9 S i
July 24 (letter of notification) $300,000 of 694% convert¬
ible debentures due Sept. 1, 1967 to be first offered for

Bdl Telephone Co.

Proceeds—

The First Boston

*•

one

($50 per share).
Underwriter—None.

bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Mor¬
gan Stanley & Co.; Shields & Co.; White, Weld & Co.;

Mon-O-Co Oil Corp., Billings, Mont.
July 11 filed 22,474 shares of class A common stock and..
539,376 shares of class B common stock to be offered in

•

capital.

Price—To

one

ders:

and Investment Manager—Horace Mann Investors,
Inc., Des Moines, la., of which Charles F. Martin is also
President.
Office—216 E. Monroe St., Springfield, 111.

shares held.

None.

utor

stock

seven

New

bank

To be determined by competitive

plied by amendment. Proceeds—For expansion program.
Offiee — Grant Bldg., Pittsburgh, Pa.
Underwriter—

Horace Mann Fund, Inc., Springfield, 111.
June 27 filed 100,000 shares of capital stock (par $1).
IPrice—At market.
Proceeds—For investment. Distrib¬

Aug.

American

received

Feb. 27 (letter of notification) 100,000 shares of common
Price—At par ($3 per share). Proceeds—For in¬

The

repay

Price—At par

if New iersev

if Molybdenum Corp. of America
Aug. 14 filed 196,994 shares of common stock (par $1)
and stock purchase warrants to buy an additional 196,994
shares of common stock to be offered for subscription
by common stockholders in units of one share and one

Un¬

Aug. 16 filed $30,000,000 of 36-year debentures due Sept.
1, 1993. Proceeds — To repay advances from parent.

•

stockholders of record Sept.
new share for each three

common

the basis of

To reduce bank loans.

Inc., St. Louis, Mo.
Aug. 19 filed 25.000 shares of common stock (par $5) to
be issued and sold under the company's Restricted Stock
Option Plan for eligible employees of the company.

«tock.

mon

subscription by

(letter of notification) 1,750 shares of class A
par) and 2,000 shares of class, B stock (par
$50). Price—$50 per share. Proceeds — For equipment,
inventory and working capital. Office—720 Southamp¬
ton Road, Westfield, Mass. Underwriter—None.
,

derwriter—None.

ventory,

for

(110

advanced

Commission

New Haven Water Co., New Haven, Conn. (9
16)
Aug. 9 filed 60,000 shares of common stock to be offered

if Midwest Pining Co.,

$200,000 of 4%

IProceeds—To repay
ments.
Office—145 North Main

.14

common

Price—For stock, $42.50

riter—Halsey, Stuart & Co, .Inc., New York
Offering—Indefinitely postponed.

if Micro Abrasives Corp.
Aug.

Power

shares held.

stock

loans. Underw

and Chicago.
-

Idaho,

research

Proceeds-^-To

Electric

Brunswick

16, 1957,

Proceeds

New York

3,120,000 shares of common stock (par one
Price—$1.25 per share. Proeeeds—For acquisi¬
tion of properties; for ore testing program; for
assess¬

cent)*

(9/11)

laboratory and working capital. Underwriter
3Deane & Scribner, Pittsburgh, Pa.
l.i

National Lithium Corp.,

mining expenses. Office—Sidney Bldg., Kellogg,
Idaho, Malcolm C. Brown is President. UnderwriterStandard Securities Corp., Spokane, Wash., and Kellogg,

Aug. 20 filed 30,000 shares of cumulative convertible
preferred stock (par $50). Price — To be supplied by

Idaho

—For

are to be sold at'25 cents per warrant?
incorporators, management, and/or direc¬
Price-r-$10 per share. Proceeds—For working cap¬
ital and general corporate purposes. Underwriter—None.

-of warrants which

amendment.

Feb. 19 filed

amendment.

Mascot Mines, Inc., Kellogg,

tors.

investment. Office—10
Nassau
Investment Advisor — Harland W
Hoisington, Inc., same address.:
%:• / v ;
market./Proceeds—For

St., Princeton, N. J.

to organizers,

Pa.

Price—At

June 3 (letter of notification) 800,000 shares of common
stock. Price—At par (1742 cents per share). Proceeds

^ Hagan

stock.

common

Bank

None.

Princeton, N. J.

May 8 filed 250,000 shares of

Aug. 15 (letter of notification) 500,000 shares of common
stock (par five cents). Price—10 cents per share. Pro¬
National

(9/4)

Corp., New York.

Nassau Fund,

ment work oa the Yellowknife properties; and for
filed $12,000,000 of first mortgage bonds due
cost
of a concentration plant, mining equipment, etc.
Sept. 1, 1987. - Proceeds—To repay bank loans and for
Under¬
writer—Gearhart & Otis, Inc., New York. Statement
construction program.
Underwriter—To be determined
ex¬
bv competitive bidding. Probable bidders; Halsey, Stu- - pected to be amended.
v
art & Co. Inc.; Kuhn, Loeb & Co. and American Securi- ;
!'if National Starch Products Inc.
'v
ties Corp. (jointly); Kidder, Peabody & Co. and Gold¬
man.
Sachs" & Co. (jointly); Harriman Ripley & Co. / Aug. 14 (letter of notification) 10,000 shares of common
stock (par $1) to be offered, to employees of
company
Inc.; Lehman Brothers and Blyth & Co., Inc. (jointly);
and its subsidiaries pursuant/to stock options.. Price-1
The First Boston Corp.; Eastman Dillon, Union Securi-"
.95% of closing market (rounded up to the nearest 25
ties & Co. and White, Weld & Co. (jointly).
Bids—
cents)j on Sept. 30, 1958, but not less than $22 per share.
Scheduled to be received up to 10:30 a.m. (CDT) on *
Proceeds—For working capital.
Office — 270 Madison
Sept. 4.
Ave., New York 16, N. Y. Underw riter—None.
Madison Improvement Corp., Madison, Wis.
New Brunswick " (Province of
v: i:
July 29 filed 50,0.00) shares * of • common stock. Price—At
Dec. 14. 1956, filed $12,000,000 of 25-year" sinking
fund
par ($10 per share). Proceeds—For working capital, etc.
debentures due Jan. .1, 1982. Price—To be supplied
Underwriter—None.- Henry Behnke is President.
by
;

^ Great Plains Petroleum Cero.

ceeds—To

Securities

Electric

Louisville Gas &

Aug.

privilege. Price—$1.25 per share. Proceeds—For explo¬
ration costs, improvements, expansion, etc. Office—Los
Angeles, Calif.
Underwriter—Dempsey-Tegeler & Co.,
St. Louis, Mo.

Corp., New York.

July

Yori*//;;

May 17 (letter of notification) 295,000 shares of common
stock (par 10 cents). Price—$1 per share.
Proceeds—To
acquire real estate properties and mortgages. Office—65c
Fifth Ave., New York 36, N. Y. Underwriter —•
Stuart

if Lehigh Portland Cement Co. (9 11)
Aug. 20 filed 380,312 shares of common stock (par $15)
to be offered for subscription by common stockholders
of record Sept. 10,, 1957 on the basis of one new share
for each 10 shares held: rights to expire 011 Sept. 25,.
1957. Price—To be supplied by amendment. Proeeeds—
For expansion and working capital.
Underwriter—The
First Boston Corp., New York,
'

Mutual Investors Corp. of Now

(9; 11)

Aug. 20 filed $30,000,000 of sinking fund debentures due :
1979. "Price—To be supplied, by amendment. Proceeds—

outstanding debt" and for working capital. Office
N.;, Y. Underwriter—A. G.
Bellin Securities Corp., 52 Broadway, New YTork, N. YT.

Thursday, August 22, 1957

...

and

debentures

Proceeds
for

Lake

—•

general

and

shares,

repay

out¬

corporate pur-

St., Chicago, 111.

Under-

writer—John R. Boland & Go., Inc., New York.

Southern California Edison Co.

Offer¬

ing—Expected in about a week.
Investment Corp.

Prudential

South

6 filed 750,000 shares of common stock. Price—
$2.50 per share. Proceeds—For investment and general
I corporate purposes. Office — Columbia, S. C. Under- "
writer—None.; ;
Aug.

Public Service Electric & Gas Co.

(8/28)

Sept. 1, 1987. Proceeds—To repay bank loans.
be determined by competitive bidding,
probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Kuhn, Loeb & Co., and Lehman Brothers
bonds due

(jointly). Bids—Expected to be received up to 11 a.m.
(EDT) on Aug. 28.

Pyramid Productions, Inc., Now York
Sept. 27, 1956, filed 220,000 shares of com. stock (par $1)
of which 200,000 shares are to be offered to public and

20,000 shares issued to underwriter. Price—$5 per share
Proceeds—To retire $125,000 of outstanding 15% deben¬

well

tures as

for

and

Inc.;

tions,

$173,180 debt to Trans-Union Produc¬

as a

capital.

working

York.

Blyth & Co., Inc.; Kuhn, Loeb & Co. Bids—Expected to
be received up to 8:30 a.m. (PDT) on Aug. 27.
j ■
•

—

if Sperry Rand Corp., New York

(9/3-6)

| Thorndike, Inc., Boston, Mass.; and Syle & Co. of New
.

Ramapo Uranium Corp.

•

(New York)

13 filed 125,000 shares of common stock (par one
cent). Price—$5 per share. Proceeds—For exploration
and development of properties and completion of a ura¬
nium concentrating pilor mill. Office—295 Madison Ave.,
New York

Underwriter—None.

17, N. Y.

Furid^ Inc**

New York

stock (par $1).

Proceeds—For investment.

Under¬

D. John Heyman of New York is Presi¬

writer—None.

Investment Advisor—Resource Fund Management

dent.

Co., Inc., 60 Broadway, New York, N. Y.
•

Roach

(Hal)

Productions

share.

Office
Underwriter—S. D. Fuller & Co.,

Business—Produces films for television.

capital.

—Culver City,
New York.
Rose

Calif.

Records,

Office—705 South Husband St., Stillwater,

Underwriter—Richard B. Burns Securities Agency,

Okla.

Stillwater, Okla.
St. Louis Insurance Corp.,

St. Louis, Mo.
C cumulative pre¬
ferred stock (par $57).
Price—$97 per share. Proceeds
—To R. M. Realty Co., who is the selling stockholder.
Underwriter
Yates, Heitner & Woods, St. Louis, Mo.
filed 1,250 shares of class

March 27

—

St.

capital stock (par $6.25)
for the outstanding capital

June 25 filed 417,000 shares of

being offered in

exchange

stock

Life Insurance

rate

Western

of
of

1.39

Co., Helena, Mont., aL

stock for each share of

of St. Paul

Western stock.

The offer is condiitoned upon acceptance

by holders of not less than 240,000 shares (80%) of the

outstanding Western stock. This offer will expire on
Sept. 26, unless extended. Exchange Agent—First Na¬
tional Bank & Trust Co., Helena, Mont.
★ Scott & Fetzer Co., Cleveland, O.

West

—

•

(9/3) r
Aug. 8 (letter of notification) 5,960 shares of 6% cumu¬
lative preferred stock (par $47.50) and 14,900 shares of
common
stock (par $1) to be offered in units of five
two

shares of

preferred Price—

Proceeds—For constructing and operating

"marinas," modern boat basins providing berthing facilhies and all types of related services for pleasure craft.
Office—105 Bedford St., Stamford, Conn. Underwriter-—
winslow, Cohu & Stetson, Inc., New York, N. Y.

•

Seminole Oil & Gas Corp., Tulsa, Okla.

June 24

(8/28)

notification) 275,000 shares of com¬
mon stock
(par five cents). Price—75 cents per share.
Proceeds
For development of oil and gas properties.
(letter of
—

Inderwriter—Albert

Co.,

Inc.,

New

York,

★ Silvray Lighting, Inc., Bound Brook, N. J. (9/5)
Aug. 14 filed 237,039 shares of common stock (par 25
tents). Price—To be supplied by amendment. Proceeds

J ^-To Estate of M. B. Beck, deceased. Underwriters—
£uchincloss, Parker & Redpath and Milton D. Blauner

[

& Co., Inc., both
berger
Sire

pi-

of New

York;

and

Hallowell,

Sulz¬

Co., Philadelphia, Pa.

Plan, Inc., New York

^
hied $4,000,000 of nine-month 8% funding notes.
—At
par

(in denominations of $100 each). Proceeds

p-ror
working capital and other corporate purposes.
*uderwHter—Sire

Plan

Portfolios, Inc., New York.

(letter of notification) 100,000 shares of class A
stock (par 10 cents).
Price—$1.50 per share.
working capital; machine tools; equip¬

and

ment

Elmo Ave.,

proprietary development.
Office—4932 St.
Bethesda 14, Md.
Underwriter—Whitney &

Co., Inc., Washington, D. C.

stock (par 10 cents). Price—$1 per share. Proceeds—To
develop Hatfield propulsion system, and other projects;

purchase of additional facilities and for working
capital.
Business—To produce machinery and equip¬
ment.
Office—70 East 45th St., New York, N. Y. Un¬
derwriter—Kesselman & Co., Inc., New York.
for

(Republic of Panama)

July 24 filed 1,165,750 shares of common stock (par $2)
to be offered for subscription by common stockholders

Corp. on the basis of one new share for each
and to holders of options on the basis

of Ogden

shares held

four
of

share for each

one

option to purchase four shares of

Proceeds—To pay

outstanding obligations to Ogden Corp.

Underwriter—-N6ne.w/v

•>'"/

•.

•

Securities Corp., New York.

D. C.
Price—$25

Exempt Bond Fund, Inc., Washington,
40,000 shares of common stock.

share. Proceeds — For investment. UnderwriterEquitable Securities Corp., Nashville, Tenn.

per

Corp., San Antonio, Texas

May 29 filed 300,000 shares of common stock (par $1),
to be offered for subscription by common stockholders
a

basis of two new shares for

each share held. Price

supplied by' amendment. Proceeds—To repay
indebtedness, for acquisition and exploration of oil and
—To

gas

leases, for drilling and
corporate purposes.

other

Texas

v;:-'
/.-/y<r:/y/■.,//
shares of common
share. Proceeds—
For plant and laboratory
expansion, advertising and
working capital. Office—6721 N. E. 4th Ave., Miami, Fla.
Underwriter—Alfred D. Laurence & Co., Miami, Fla.
Truly Nolen Products, Inc.

July 19 (letter of notification) 100,000
stock (par 50 cents).
Price—$2 per

United Utilities,

Eastern

Inc.

(8/29)

Aug. 9 filed 312,506 shares of common stock (par $10)
to be offered for subscription by common stockholders

Aug. 28, 1957, at the rate of one new share for
held; rights to expire on Sept. 13, 1957.
Price—To be supplied by amendment.
Proceeds—For

each six shares

companies.
Underwriter—
New York.
Uranium Corp. of America, Portland, Ore.
April 30 filed 1,250,000 shares of common stock (par 1C
cents). Price—To be supplied by amendment (expected
to be $1 per share). Proceeds—For exploration purposes.
Underwriter—To be named by amendment. Graham Al¬
bert Gr is wold of Portland, Ore., is President.
:/>•; ;
subsidiary

investments

Kidder, Peabody & Co.,

completion of wells, and for
Underwriter—None.

Productions

Walt Disney

stock (par $2.50).

supplied by amendment. Proceeds — To
Atlas
Corp., the selling stockholder.
UnderwritersGoldman, Sachs & Co., Lehman Brothers and Kidder,
Peabody & Co., all of New York.
Price

—

To be

Waiter

Corp., Tampa, Fla.

(Jim)

(8/23)

July 22 filed $1,250,000 of 9% subordinated
Dec. 31, 2000, and 50,000 shares of common

bonds due
stock (par

to be offered in units of $25 principal amount
of bonds and one share of stock. Price—$48.50 per unit.
Proceeds—For working capital.
Business—Construction

50 cents)

Underwriters—Carl M. Loeb, Rhoadea

of "shell" homes.

Co., New York;
Cleveland, Ohio.
&

and Prescott,

Transmission

Co.,

Shepard & Co., Inc.,
(9/4)

Ltd.

$25,000,000 of subordinated debentures
series C. due April 1, 1988 (convertible until July 15,
1978).
Price — To be supplied by amendment. Pro¬
ceeds—For construction of pipeline. Underwriter—East¬
13

Aug.

man

filed

Dillon, Union Securities &

Co., New York.

Transmission Co., Ltd.
Aug. 16 filed voting trust certificates relating to 625,000
shares of capital stock, being the estimated maximum
number of shares into which the series C subordinate
debentures might be convertible at the initial conver¬
if Westcoast

sion

price.

if Western

Empire Life Insurance Co.

14 (letter of notification) 5,000 shares of class A.
common stock (par $10). Price—$60 per share. Proceeds;
Aug.

Office—Newhoust?
Underwriter—None.
Wycotah Oil & Uranium, Inc., Denver, Colo.
July 29 filed 375,000 shares of common stock (par $1).
Price—$4 per share. Proceeds—For acquisition of prop¬
erty and for other corporate purposes.
Underwriter —
Teden & Co., Inc., New York.
Offering — Expected

—For

and surplus accounts.

capital

Bldg., Salt Lake

City, Utah.

shortly after Labor

Transmission Corp.

(8/28)

Aug. 6 filed 400,000 shares of common

Westcoast

(9/5)
Aug. 2 filed 217,286 shares of common stock (par $7)
to be offered for subscription by common stockholders
of record Sept. 4, 1957 at the rate of one new share for
each 10 shares held (with an oversubscription privilege);
rights to expire on Sept. 23, 1957. Price—To be supplied
by amendment. Proceeds—To repay bank loans and for
construction program. Underwriter — Stone & Webster
Tampa Electric Co.

;

<•

(9/5)
?
Aug. 2 filed,<$18,000,000 of first mortgage bonds due July
1, 1987. Proceeds—To repay bank loans. Underwriter—
To
be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Stone & Webster
Securities Corp.; Goldman Sachs & Co.; Merrill Lynch,
Pieree, Fenner & Beane; Kuhn, Loeb & Co. Bids—To be
received at 90 Broad St., New York, N. Y., up to 11 a.m.
Tampa Electric Co.

June 20 filed

Coal Co.

filed $360,000 of participations in company's
Employees Stock Purchase Incentive Plan, together with
15,000 shares of common stock (par $1) which may be
purchased pursuant to such plan//Vv ■.//;:/a/ // //./•
19

Aug.

of record

(letter of notification) 300,000 shares of common

Texam Oil

★ Scott-Paine Marine Corp.

and

Pro¬

(8 26-30)

Inc.

Strato-Missiles,

Cleveland, O.

common

Price—$1.50 per share.

of films, working capital, etc.
St., New York.:/ Underwriter —

57th

Joseph Mandell Co., New York.

Tax

15 filed 38,000 shares of common stock (par $5).
Price
To be supplied by amendment. Proceeds — To
selling stockholders.
Underwriter—McCormick & Co.,

$100 per unit.

cents).

production

Office—113

(9/10)

Aug.

shares of

stock (par 25

ceeds—For

(9/3-6)
199,999 shares of com¬

Film Corp.

(John G.)

(letter of notification)

Proceeds—For

if Truax-Traer

(EDT) on Sept. 5.

Fire & Marine Insurance Co.

Paul

common

(8 27)

Ogden common stock; unsubscribed shares to be offered
to certain employees and officers.
Price—$2 per share.

Inc.

July 22 (letter of notification) 11,022 shares of common
stock. Price—At par -($1 per share). Proceeds—For work¬
ing capital.

Stratford

Syntex Corp.

stock (par $1).
Proceeds—For expansion of pro¬
duction of filmed television commercials and for working
per

Improvement & Forge Co.

expenditures, payment of debt of subsidiary and for
working capital. Underwriter—Fulton, Reid & Co., Inc..
Cleveland, Ohio.

(9/10-11)

Aug. 8 filed 375,000 shares of common
Trice—$3

Feb. 27

and 26,709 shares for selling stockholders. Price—«,
supplied by amendment. Proceeds—For capital

June 7

March 29 filed 100,000 shares of common

Price—At market.

Inc.

June

Trlpac Engineering Corp.

Aug. 6 filed 86,709 shares of common.stock (par $1), of
which 60,000 shares are to be sold for account of com¬
pany

':"^:/;///

Wayne Jewell Co., Denver, Colo.

July 24.

mon

ic Regency Fund, Inc., New York
Aug. 15 filed 1,500,000 shares of common stock (par 10
cents).
Price—At market.
Proceeds—For investment.
Former Name—Trinity Place Fund, Inc.
/;•/-/•
Resource

Lynch, Pierce, Fenner

Investment Fund,

>12,

May 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per share./Pro¬
ceeds—For exploration of oil properties. Office — 704
First National Bank Bldg., Denver, Colo. Underwriter—

Inc., Fortune III,
Inc. Underwriter — William Allen
Steadman & Co., East Orange, N. J. Statement effective
Steel

of stock held of record on Aug.

Price—100% of
principal amount. Proceeds — For working capital and
other general corporate purposes. Underwriters—Smith,
Barney & Co., New York.; and McDonald & Co., Cleve¬
land, Ohio. ;
■
■/., >y
/V', '/<■■/'.v/ /'

Fund of Fortune, Inc., Fortune II,

Aug.

each 14 shares

1957; rights to expire on Aug. 27, 1957.

Inc. and Fortune IV,

•

Merrill

stockholders in the ratio of $100 of debentures

common

both of New York.

& Beane,

subordinated deben¬
due Aug. 1; 1982 (convertible into common stock
Aug. 1, 1967) being offered for subscription by

Titanic Oil Co.

due
Sept. 1, 1982 (with common stock purchase warrants).
Price—To be supplied by amendment.
Proceeds — For
capital expenditures and working capital. Underwriters
Brothers and

until

(9/41)

Aug. 16 filed $110,000,000 of sinking fund debentures

—Lehman

tures

for

(letter of notification)

Steadman

share). Proceeds — To purchase machinery and
equipment and for working capital. Office—131 Dahlem
St., Pittsburgh, Pa. Underwriter — Childs, Jeffries &
York, N. Y.

Fla.

per

;

Corp., Jacksonville,

150,000 shares of com¬
mon stock (par $1).
Price—$2 per share. Proceeds—To
be added to the general funds of the company. Under¬
writer
Pierce, Carrison, Wulbern, Inc., Jacksonville,

June

Quaker State Foods Corp.

Industrial

Thompson Products, Inc.
July 24 filed $19,729,500 of 47/s%

May 10 filed 100,000 shares ot common stock (par $1)
to be offered in connection with merger into this Fund

July 29 (letter of notification) .9.154 shares of 7% cumu¬
lative convertible prefeired stock. Price—At par ($10

properties and payment of rentals
Underwriter — Piper, Jaffray &

new

Hopwood, Minneapolis, Minn.

Business—Tele¬

Underwriter—E. L. Aaron & Co., New
Offering—Date indefinite.

vision releases.

oil and gas leases.

J, due 1982. Proceeds—For construction
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
The First Boston Corp. and Dean Witter & Co. (jointly);
series

program.

Southern

Under wi'iter—To

acquisition
on

$60,000,000 of first and refunding mortgage

Aug. 1 tueci

(8 27)

Aug. 5 filed $40,000,000 of first and refunding mortgage
bonds,

Carolina

(821)

Number 5666 . .;Jhe Commercial and Financial Chronicle

[ Volume 186

shares of common stock (par $7)
being offered in exchange, on a share-for-share basis,
for capital stock of La Gloria Oil & Gas Co. of Corptis

Day.

July 22 filed 1,000,000

Christi, Tex.
at

least

81%

The offer was conditioned upon deposit of
(810,000 shares) -of outstanding La Gloria

1957, and it was announced on
Aug. 8 that in excess of this amount had been deposited.
Offer may be extended from time to time but not be¬
yond Dec. 5, 1957. Underwriter—None. Statement ef¬
stock

prior to Sept. 6,

fective Aug.

Texas Glass

Prospective Offerings

Tex.

shares of common stock (par $1).
Proceeds—For expansion and work¬
ing capital.
Underwriter—T. J. Campbell Investment
Co., Inc., Houston, Texas.
Texota Oil Co.. Denver, Colo. '8 28)
Aug. 7 filed S650,000 of convertible debentures due
Aug. 1, 1967. Price — ITo be supplied by amendment.
Proceeds—To repay bank loans and for drilling of wells,

May 28 filed 2,116,292
Price—$2 per share.

plans to issue and sell
up to $12,500,000 common stock, following spin-off by
California Eastern Aviation, Inc. of its subsidiaries,
Land-Air, Inc. and Air Carrier Service Corp. mto Air¬

July 9 it was

craft,

Manufacturing Corp., Houston,

Inc.

Aircraft,

Inc.,

reported company

All

company.
Chicago, 111.

new

Podesta & Co.,

States Freight,

Underwriter—Cruttenden,

Incorporated, Akron, O.

announced company plans to oifei Publicly $2,250,000 of 15-year 6% debentures (with conimoi
stock warrants).
Proceeds—Together
private sale of 425,000 shares of common stock at $4 pe.
share to pay part of cost of purchase of an operating car-

June 21 it was

/>rl

nn.flP.

C8'22)

The Commercial and Financial Chronicle...

Continued from page 37
rier

truck line.

Chesapeake & Potomac Telephone Co. of Md.
July 30 it was announced company plans to issue and

Underwriter—Fulton, Reid

& Co.,

Cleveland, Ohio.

Inc.,

$30,000,000 of debentures.

Proceeds—To repay

announced company plans to
issue and
15,000 shares of $1.20 cumulative convertible
pre¬
ferred stock series A (par
$20). Underwriters—Emch &
Co. and The Marshall

Bell

Co., both of Milwaukee, Wis.

White, Weld & Co.; Morgan Stanley & Co.; Kuhn, Loeb
Co.; The First Boston Corp.; Harriman Ripley & Co

Offering

Expected late November

—

early De¬

cember.

American Telephone &
Telegraph Co. (10/29)
July 17 it was announced that company plans to issue
and sell
$250,000,000 of debentures to be dated Nov.
1,
1957 and to mature on Nov.
1, 1983. Proceeds—For im¬

City Investing Co., New York
July 30, Robert W. Dowling, President, announced that
the directors are giving consideration to the
possible

provement

future

issuance

largely

and

expansion of system. Underwriter—To
be determined by
competitive bidding. Probable bidders:
Morgan Stanley & Co.; The First Boston
Corp. and Halsey, Stuart & Co. Inc. (jointly).
Bids—Expected to be
opened on Oct. 29.

Atlantic City Electric Co.
April 9, Bayard L. England,
President,

announced that
company will probably issue about
of convertible debentures.

later this year

$5,000,000

the

Proceeds—For con¬
struction program.
Underwriter—May be determined by
competitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.;
Kuhn, Loeb & Co., American Securities
Corp.
and Wood, Struthers & Co.
(jointly); White, Weld & Co.
and Shields & Co.
(jointly); The First Boston Corp. and
Drexel & Co.
(jointly); Eastman Dillon, Union Securi¬
ties & Co. and

Smith, Barney & Co. (jointly); Lee
Hig-

ginson Corp.; Blyth & Co., Inc.

the

55,000

common

stock

(par $20)

the

share for each three shares
held.
share. Proceeds—To increase
new

additional
basis of one

Price—$37.50

per

capital and surplus.

Byers (A. M.) Co.
May 7 stockholders approved

proposal to authorize

underwrote General

Tire & Rubber Co.
financing.

California Electric

Power Co.
(9/17)
Aug. 9 it was announced the
company expects to sell
140,000 shares of cumulative preferred
stock (par
$50).
Proceeds—To retire short-term bank
loans. Underwriters
and

Merrill

of New York.

Lynch,

Pierce,

•

California Oregon Power Co.
(10/14)
Aug. 13 company applied to the
California P. U. Com¬
mission for
.

authority to issue and sell
$10,000,000 of first
bonds due Oct.
1, 1987. Proceeds—To
repay
bank loans.
Underwriter—To be determined
by competi¬
tive bidding. Probable
bidders: Halsey, Stuart &
Co.
Inc.;
Shields
mortgage

Co.; Merrill Lynch,
Pierce, Fenner

Kidder, Peabody &

and The First Boston

Bids—Expected

Beane

Co.

(jointly); Blyth & Co., Inc.
Corp. (jointly); White, Weld &
Co.

to be received

Oct. 14.

California Oregon Power
Co.
Aug. 13 it was anounced
company has
California P. U. Commission for

applied to the
permission to issue and
of common stock
(par $20). Proceeds—
To repay bank
loans and for
construction program. Un¬
derwriters—Blyth & Co., Inc. and The First Boston
Corp.,
both of New York.

sell

200,000 shares

Central Hudson Gas &
Electric Corp,
April 22 it was announced
company plans to issue and
sell this
year, probably in the
fall, approximately
$7,500,000 of sinking fund
debentures.
construction

Proceeds—To finance

program.

Peabody & Co., New

Underwriter—Probably

Kidder

York.

was reported company plans

issue

and sell
$10,000,000 of 1st mtge.
bonds.Proceeds—To reduce bank
loans and for

construction program.

Underwriter—To be
determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co.
Inc.; Salomon Bros. &
Equitable Securities
Hutzler;
Corp.; Eastman Dillon, Union
Secu-

f3*?

and

.?■' B1yth & Co-» Inc.; Kidder, Peabody &
Co.;
Lynch, Pierce, Fenner & Beane
(jointly);
^ & Co. and A. C. Allyn &

Merrill.
•'

Offering—Expected

Co., Inc. (jointly).

late in 1957.

April 8 it

was

company plans to issue and
late this year
$6,000,000 of first
mortgage bonds.
Proceeds
Together with $4,500,000 of
4%% 12-year
convertible debentures
placed privately, to be
used to
repay bank loans and for
construction program.
Un¬
derwriters—Kidder, Peabody & Co. and
White, Weld &
Co. about the middle
of last year
arranged the private
placement of an issue of
$5,000,000 series G first mort¬
gage bonds.
sell

—

June 3

tion

$3,500,000

was

reported

Inc.

company plans early
collateral trust

registra¬

sinking fund

and 350>000 shares of common stock. Each
$10 of bonds will
carry a warrant to
purchase one share
of common
stock. Underwriter
Van
Alstyne,' Noel &
Co., New York.
—

★ Chesapeake & Ohio
Ry.
Bidsmare expected to be
October for

received

the

purchase

ment trust
certificates.

& Co.

growth potentials.

from

by
of

the

company

$4,500,000 equip¬
Stuart

Co.

Fuel

Associates

announced company

was

may need

addilionaj

capital of between $25,000,000 and $35,000,000
during the
next two years. • Underwriter—For
any bonds to

be de¬

by,- competitive bidding.
Probable
bidders
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.;
White, Welo
& Co., and Kidder, Peabody & Co.
(jointly).

Illuminating Co.

Eastern

bidders:

and

Probable
First Boston

Halsey, Stuart & Co. Inc.; The
Corp.; Blyth & Co., Inc.; Dillon, Read & Co. Inc.; Blair
& Co. Inc., and Baxter, Williams & Co.
(jointly); Glore,
Forgan & Co.; White, Weld & Co.
Coastal Transmission Corp.
July 1 it was reported the company plans to offer pub¬
licly about 191,000 units of securities for about
$20,000,-

(each unit expected to consist of a $25 debenture or
interim note and five shares of
$1 par common
stock). Proceeds—Together with other
funds, for con¬

struction program.
Underwriters—Lehman Brothers and
Allen & Co.. both of New York.

^Colorado

Aug. 19 it

Fuel

Iron

(10/10)
reported company plans to issue and sell

was

$40,000,000 first mortgage bonds
purchase warrants). Underwriter

Registration—Expected

Columbia Gas

System, Inc.

due
—

1977

Allen

around

(with
&

Co.,

6, company announced that it
plans the issuance
of $25,000,000 debentures
later in 1957.
Pro¬
ceeds—To help finance 1957
construction program, which
is
to

cost

approximately

$84,000,000. Under¬
writer—To be determined
by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanle}
&
Co.; Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly). Bids—Expected to be re¬
ceived

Oct.

Columbus & Southern Ohio
Electric Co.
July 22 company announced it is
planning to sell publicly
in October an issue of
$8,000,000 par amount of cumula¬
tive preferred stock.
Price—To be determined later
Proceeds—To reduce short term bank
loans.
Under¬
& Co.

Inc., New York.

Commerce Oil Refining Co.
*v
10 it was reported this
company plans
about $64,000,000 to finance
construction on a
corporate

raiseMi

proposed
The ma jo:

purposes.

portion will consist of first
mortgage bonds which woulc
privately, and the remainder will include de¬
bentures and common stock (attached or in
units). Un¬
derwriter—Lehman Brothers, New York.
Commonwealth Edison Co.
(10/8)
June 25 company stated that it
plans to offer $25,000.00C
be placed

$50,000,000

mined);

Proceeds

—

Fpr

securities

new

common

stock

(kind

financing

construction

program.

(1) For any preferred stock, may
Corp. and Glore, Forgan & Co.

not

yet

deter¬

contemplated.
Underwriter

—

be The

(jointly).

First

(2)

Boston

For

Co.* a subsidiary
Underwriter—To be deter¬
by competitive bidding. Probable bidders:
Hal¬
sey, Stuart.& Co. Inc.; Kidder,-Peabody &
Co.; Blyth
& Co., Inc.;, White,{ Weld &
Co.; Stone & Webster Se¬
curities Corp. and Estabrook & Co.
(jointly).

Employers Group Associates
July 1 it
tration

capital

Oct.

Connecticut

Ljght & Power Co.

Feb.

18, it was reported company plans to sell not
les?
$20,000,000 of first mortgage bonds,
possibly this
Fall, depending upon market conditions.
Proceeds—F01

construction

program.

Underwriter

—

Putnam

Co.

Hartford, Conn.; Chas. W. Scranton &
Co., New Haven
Conn.; and Estabrook & Co., Boston, Mass.
Consolidated

Edison

Co.

New

(10/22)
Charles B. Delafield, Financial
announced

that

the

York,

Inc.

Vice-President,

company has

issue and sell

on July 8
tentatively decided to

$50,000,000 of first and
refunding mortgage
(probably with a 30-year
maturity). This may

bonds

$60,000,000, depending

upon market con¬

Proceeds—From this issue and bank
loans, to
part of the cost of the
company's 1957 construction
program which is expected to
total about
pay

$146,000,000
Underwriter—To be determined
by competitive bidding
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; The First Boston
Corp.
scheduled to be received
up to 11

Consumer Power Co.

(EDT)

Oct. 22

(9/23)
1987.

bank loans and for
Underwriter—To be determined
repay

construction

and sell

Proceeds

program

by competitive
bidding
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Welc
& Co. and Shields & Co.
(jointly); Morgan Stanley &
Co.; The First Boston Corp. and Harriman
Ripley & Co

a.m.

(jointly). Bids—Expected
(EDT)

Sept. 23.

The

88,761

offered

basis

held./Price—To

for

one

poses.

to be received
up to 11:30

company plans, in addi¬
tion to the bond
financing, to offer to its common stock¬
holders the right to subscribe for
$35,156,760 convertible
debentures maturing not earlier
than Sept. 1,
1972, on
the basis of $100 of
debentures for each 25
shares ol

additional

subscription
share

new

be supplied

ceeds—For working capital

and

late

Aug. 6 it

regis¬

proposed

shares of

for

stock¬

each

tour

by amendment. Pro¬

general corporate

Underwriter—Morgan Stanley & Co.,

Offering—Expected in

August

pur¬

New York.

early September.

(9/17)

was

reported that this company is
considering
convertible
subordina ed de¬
bentures1 (with stock purchase warrants

issue

$12,000,000

attached). Pro¬

ceeds—For

working capital. Underwriter—Kidder, Pea¬
body & Co., New York. Registration—Expected late in
August.

..'

■

Gulf

Interstate Gas Co.
May 3 it was announced company
not

yet

plans to issue

mortgage bonds, the

been determined.

Proceeds

For

—

construction

Underwriters—Carl M. Loeb, Rhoades
Lynch,: Pierce, Fenner & Beane.

program.

Gulf

Aug.

States

Utilities

Co.

some

amount of which has

and Merrill

(9/30)

announced

was

company plans to issue and
mortgage bonds due 1987.
Proceeds-r-To repay frank loans and for construction
pro¬
gram
Underwriter—To be determined
by competitive
bidding.
Probable, bidders: Halsey, Stuart
Co. Inc.;
Merrill Lynch, .Pierce,► Fenner
and
Beane and
White,

$17,000,000

Weld

& 'Co.:.

Eastman

Loeb

first

(jointly);

Salomon

Bros.

Dillon. Union Securities & Co.

Hutzler

and

(jointly); Kuhh,

Co. and

A, C Allyn & Co Inc.
(jointly):
& Webster
Securities Corp.; Lee Higgin«on
Corp BidsExpected to be received up to noon
(EDT) on Sept. 30.

Hathaway
June
to

its

stock.

(C.

was

Fall

Co., Waterville, Me.

:'-n

•

soon

additional

some

offer

common

H. M. Payson & Co., Port¬

Lighting 8t Power
was

plans

company

stockholders

Underwriter—Probably

Houston
Feb.

F.)

announced

common

land, Me.

reported

Co.

company

may

offer late

this

approximately $25,000,000 first mortgage bonds, hut

exact amount,

timing, etc. has not yet been determined
Underwriter—To be determined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Equitable
Securities Corp.;
Lehman Brothers,
Eastman Dillon,
Union

Securities

Co.

and

Salomon

(jointly); Lazard Freres & Co.
(jointly); Kidder, Peabody & Co.
Idaho

May 16 it

Power

and

Bros.

Blyth

Hutzler

Co., Inc.

Co.

was

reported company plans to issue ,and sell
around 200,000 to
225,000 shares of common stock in the
Fall in addition to
between $10,000,000 to $15,000,000
first mortgage bonds after
Nov. 1.
Underwriter—-To be
determined by competitive
bidding, probable bidders:
(1) For bonds—Halsey, Stuart & Co.
Inc.; Salomon Bros.
& Hutzler and Eastman

Dillon, Union Securities & Co.
Inc., Lazard Freres & Co. and
Corp. (jointly); Kidder, Peabody &
Co. and
White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.
(2) For stock—Kidder, Peabody & Co.; Blytn
& Co.,
Inc., and Lazard Freres & Co.
(jointly).

(jointly); Blyth

The

Bids—Tentatively

a.m.

July 9 it was announced company plans to
issue
$35,000,000 of first mortgage bonds due

Inc.

and-sale

stock ;1o .he

—

be received

announced company plans to file
with the SEC
covering the

was

statement

issuance

any

bonds,
to
be
determined
by
competitive
bidding.
Probably bidders: Halsey, Stuart & Co.
Inc.; The First
Boston Corp.; Glore,
Forgan & Co. Bids
Expected tc

issue

bonds
Blackstone Valley Gas &

Electric

sell

June

refinery and for other

advances

mined

additional first

writer—Dillon, Read

company proposes to
oh. 25-year collateral trust

$3,75.0,000

General Tire & Rubber Co.

sale

expected

Associates

announced

was

Sept. 20.

(10/3)

June
and

sell

holders

Corp.

Utilities

Proceeds —For

000

Consumers Power Co.
(10/16)
July 9 it was announced that the

Probable bidders: Halsev
& Hutzler.

Inc.; Salomon Bros.

in¬

April

—To

of 5^%

5??^ ?ue 1972

ordinary

bidding.

ditions.

announced

Chesapeake Industries,

Electric

be increased to

Central Louisiana
Electric Co., Inc.

Eastern Gas

April 3 it

used

than

Central Illinois Public
Service Co,

^P1^1 9 **

bank loans and for construction
program. Underwriter—
be
determined
by competitive

Underwriter—Dillon, Read & Co.,
Inc.,.New York, handled previous
preferred stock financ¬
ing, while Kidder, Peabody & Co.

and

producing

about

Rubber Co. in 1956.

Co.

could

Nov. 12 it was reported company plans to issue and sell
$25,000,000 of first mortgage bonds. Proceeds—To repay

New York.

of 100,000 shares of
cumulative preference
(par $100) and to increase the
authorized out¬
standing indebtedness to
$15,000,000, in connection with
its proposed
recapitalization plan. There are no
specific
objectives involved.
Control—Acquired by General Tire
&

—Kidder, Peabody &
Fenner & Beane, both

with

which

Cook Electric

July 15 it was reported that company is
planning some
equity financing. Underwriter—Probably Blunt
Ellis &
Simmons, Chicago, 111."

termined

stock

•

investments

those

Cleveland

stock

class

new

acquire

well

debentures

$35

• Bank of Hawaii, Honolulu, Hawaii
Aug. 16 it was announced directors have
authorized
offering to common stockholders of
Shares of

come

r».

Halsey, Stuart & Co. Inc.;
White, Weld
& Co. and Shields & Co
(jointly); Morgan
Stanley &
Co.; The First Boston Corp. and Harriman
Ripley & Co
Inc. (jointly); Ladenburg, Thalman &
Co.
Bids—Expect¬
ed to be received up to noon
(EDT) on Oct. 16.

Telephone & Telegraph Co., the
Underwriter—To be determined by competitive
bidding. Probable bidders: HaJsey, Stuart & Co. Inc.;

Inc.

1957

bidding

Probable bidders:

ad¬

parent.

was

Proceeds—For construction
program,
be
determined by competitive

derwriter—To

from American

vances

Aluminum Specialty Co.
March 18 it

sell

held.

stock

Thursday, August 22,

First

Co.

Boston

Indiana ■&

Michigan

Electric

Co.

(12/16)

May 20 it was reported
company plans to issue and sell
$20,000,000 of first mortgage bonds due 1987. Proceeds

—For

reduction

bank

loans

and

for

construction

program.

Underwriter—To be determined by competibidding. - Probable bidders:
Halsey, Stuart ^ Co.
Inc.; Harriman Ripley & Co.
Inc.; The First Boston
Corp.; Eastman Dillon, Union
Securities & Co. Bids—
Tentatively expected to be received
tive

Dec. 10.

to 11 a.m. (FS*1

•

Jefferson Lake
Sulphur Co.
was reported
company plans to offer to com¬
mon
stockholders about 145,000 to
150,000 additions
shares of common stock on the

Aug. 12 it

basis of one new shm
for each five
shares held (for a
16-day standby). "r0"
eeeds—For expansion,
program.
Underwriters —
,
blower & Weeks of New
^

Sons, Baltimore, Md.

York; and Robert Garrett

rlV*

Number 5666

186

Volume

...

Laclede Gas Co.

it was announced

The Commercial and Financial

plans to raise1

St 1,700,000 liew money tlais year »through' sale of new
securities. Proceeds—To repay bank loans ana 'for con| stniction program. Underwriter—For bonds, to be detcrmined,by ,competitive ,bidding. Probabje bidders: Halscy, Stuart & Coi liic.; Lehman Brothers, JVterjrill Lynch,
I pierce, Fenrter & Beane and Heinholdt & Gardner (joint"

Island Lighting Co.

Long

•

equipment trust certificates. Probable /bidders: Hal¬

Stuart & Co. Inc.; Salomon Bros. &'Hutzler.

Mangel Stores Corp.
19 it was reported

June

expected

bentures

due

New

issue

1972.

May 8 it

of $3,000,000

Underwriter—Lee

convertible

de¬

Higginson Corp.,

(9/23-24)

Was

loans

and for

determined

Underwriter—To

construction.

new

by competitive

bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Lehman Brothers and
Bear, Stearns & Co. (jointly); White, Weld & Co.; Equi¬
table Securities Corp.; The First Boston Corp.; Eastman
Dillon, Union Securities & Co.; Central Republic Co.
Inc., Blyth & Co. Inc., and Merrill Lynch, Pierce, Fenner &
Beane (jointly); Harriman Ripley & Co. Inc. Bids—Ten¬
tatively expected to be received on Sept. 23 or Sept. 24.
Ohio

Power Co.

(11/19)

reported that this company now plans to
and sell $28,000,000 of first mortgage bonds and
70,000 shares of $100 par value preferred stock. Pro¬
was

ceeds—To

bank loans. Underwriter—To be de¬
by competitive bidding.
Probable1 bidders:
(1) For bonds—Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp.; Blyth & Co., Inc.; Eastman Dillon, Union Se¬
repay

termined

(2)

Co. and

Salomon

Bros.

& Hutzler

ties & Co. and Salomon Bros. & Hutzler (jointly): Harri¬
man

Ripley & Co. Inc. and Stone & Webster Securities

South Utilities,

I nc.

(jointly); The First Boston Corp.; Blyth & Co.,
Inc.; Kuhn, Loeb & Co.; Lehman Brothers. Bids—Ex¬
pected to be received up to 11 a.m. (EST) on Nov. 19.

was

the

System operating companies during the
three-year period 1957, 1958 and 1959. UnderwriterPrevious 1 stock offering was to stockholders, without

underwriting, with oversubscription privileges.
Montana Power Co.

..vv..-

May 20 it

was reported company may issue and sell in
the fall about $20,000,000 of debt securities. Proceeds—
construction program and to reduce bank loans.

★ Pennsylvania Power Co. (10/16)
Aug, 5 it was reported company plans to issue and sell
$8,000,000 of first mortgage bonds due 1987. Proceeds—

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. * Inc.; Eastman

Dillon, Union Securities & Co.; While, Weld & Co.; Kid¬
der, Peabody & Co.; Smith, Barney & Co., and Blyth &
Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner &
Begne and Stone & Webster Securities Corp. (jointly).
'National!

Aug. 12 it

Cylinder

Co.

Gas

licly $17,500,000 of 20-year convertible subordinated de¬
Proceeds—For expansion and working capital.

Underwriter—Merrill

Lynch, Pierce, Fenner '& Beane,
Registration—Expected late in August.

England

May 23 it

Electric

was

Co.; Lowell Electric Light Corp.; Lawrence Electric Co.;
Haverhill Electric Co. and Amesbury Electric Light Co.,
into one company.
This would be followed by a $20,-

000,000 first mortgage bond issue by the resultant com¬
pany, to be known as Marrimack-Essex
Electric Co.
Underwriter—May be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn,
&

Company; Salomon Bros. & Hutzler; Eastman
Dillon, Union Securities & Co., and Wood, Struthers &
Co, (jointly); Lehman Brothers; The First Boston Corp.;
Equitable Securities Corp.;, Merrill Lynch, Pierce, Fen¬
ner & Beane;
Kidder, Peabody & Co., and White, Weld
&
Co. ((jointly).
Offering—Expected in first half oi
1957.
: ■ •
\
;
V'
New Jersey

Sept. 13, 1956, it was announced company plans to issue,
$5,000,000 of first mortgage bonds. Underwriter—
To be determined by competitive bidding.: Probable
bidders: Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh¬

and sell

man

Brothers

and Salomon

Bros.

Hutzler

(jointly),

Eastman Dillon, Union Securities & Co. and White, Weld
&

Co.

Boston

(jointly); Equitable Securities Corp.; The First
Corp;; Merrill Lynch, Pierce. Fenner & Beane

• New York Central

Bids will be received by the company in New York up
to

noon
(EBT) 011 Aug. 26 for the purchase from it of
$3,555,000 equipment trust certificates due annually from
Sept. 16, 1958 to and including 1972. Probable.bidders:

Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Niagara Mohawk Power Corp.
April 22 it

was

reported

company

(9/24-27)
tentatively plans to

issue. and sell $40,000,000 of first mortgage

■ bonds,
Un¬
derwriter—To be determined by competitive' bidding
Probable^bidders: Halsey, Stuart & Co. Inc.* The Firsl
Boston Corp.; Morgan Stanley & Co.; Kuhn,' Loeb & Co
and Eastman. Dillon, Union Securities & Cov (jointly).
Bids—Expected week of Sept.. 24. ^
s [ -1 }; t

•

Norfolk & Western Ry.

Bids

are

•

(9/19)

.expected to be received by

the'company up to
noonM(EDT,; on Sept. 19 for the: purchase < from it of
$4,260,000 equipment trust certificates. Probable bid¬
ders ; HalseySiStuart & Co. Inc.; Salomon Brk)s. & Hutzler.

Lines, Los Angeles, Calif.
reported company plans issue and sale in
October of 40,000 shares of common stock (par $2.50).
Underwriter—Cruttenden, Podesta & Co., Chicago, III.. t"
★r Transcoti

Aug. 12 it

financing, but jao,;consideratioh; is being given to

sale of common
stock

securities convertible into- com¬

was

Transocean

Corp. of California

announced company plans a public offer¬
ing of securities to provide about $6,700,000 of new
working capital.

May 21 it

was

Union National

Bank of Lowell

to its stockholders of record
July 31, 1957 the right to subscribe on or before Aug.
26, 1957 for 17,600 shares of capital stock (par $12.50)

Aug.

the Bank

the

basis

offered

one

for

five

each

shares held.

Proceeds

Corp.; Merrill Lynch, Pierce, Fenner & Beane
(jointly); Lehman Brothers; Kid¬
der, Peabody & Co.; Kuhn, Loeb & Co. Bids—Tentative¬
ly expected to be received

Oct. 16.

Philadelphia Electric Co. (9/12)
July 22 it was announced company plans sale of $40,000,000

additional

construction

bonds

mature

1987.

Underwriter—To

Proceeds—For

determined
by competitive bidding. Probable bidders: Halsey, Stuart
&\Co. Inc.; White, Weld & Co.; The First Boston Corp.;
Morgan Stanley & Co. and Drexel & Co. (jointly). Bids
program.

Utah

Power

March 12 it

and sold by the company.

Pierce,

Union

Securities

received

Co.

(jointly). Bids—Expected to be

Oct. 9.

issue and

—

scheduled to be received

Sept. 12.

(amounting to $25,000,000 at Dec. 31, 1956) and for new
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The First Boston Corp.; Harri¬
man.Ripley & Co. Inc.; Glore, Forgan & Co.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler and Eastman Dillon.

(9/24)

Light Co.

announced company plans to

ly); Lehman Brothers and Bear, Stearns & Co. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Kidder, Peabody & Co. Bids — Tentatively
Utah

Proceeds—To repay bank loans

was

$15,000,000 of first mortgage bonds due 1987.
To repay bank loans and for construction
program. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Blyth & Co., Inc.
(jointly); Salomon Bros. & Hutzler; Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬

Public Service Co. of Indiana, Incw
(10/9)
July 29 it was announced that it is expected that a new
series of $30,000,000 first mortgage bonds will be issued

Power &
was

Sept. 24.

(9/24)

Light Co.

also announced company plans to offer

public 400,000 shares of common stock. Under¬
competitive bidding. Prob¬

the

writer—To be determined by

Peabody & Co. and Merrill Lynch,
Beane (jointly); Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬

able bidders: Kidder,

Fenner

ly); Lehman Brothers; Blyth & Co., Inc.

Bids—Tenta¬

tively scheduled to be received 011 Sept. 24.

Valley Gas Co.
April 15 it was announced company, a subsidiary of
Valley Gas & Electric Co., plans to issue,

Blackstone

within

one

year,

$4,000,000 of bonds, $1,100,000 of note*

$900,000 of preferred stock to its parent in ex¬
change for $6,000,000 of notes to be issued in exchange
for certain assets of Blackstone.
The latter, in turn,
and

Public

Aug.

1 it

Service

Electric

announced

was

sell in the Fall of 1957
stock
with

Gas

Co.

anticipates it will
$25,000,000 of preferred

company

in 1958

(in addition to $60,000,000 of bond now registered
SEC).
Proceeds—For construction program.

the

Underwriter—May be Merrill Lynch, Pierce, Fenner &
Beane, New York.
★- St. Louis County National Bank (9/10)
Aug. 2 it was announced Bank plans to offer to its stock¬
holders of record Sept. 9,

1957 the right to subscribe for
capital stock (par $10) on
the basis of one new share for each 5% shares held;
rights to expire on or about Sept. 30, 1957. Underwriter
—G. H. Walker & Co., St. Louis, Mo.
additional

San Diego Gas & Electric Co.
April 23, E. D. Sherwin, President, announced that com¬
pany will probably raise about $7,500,000 late this fall
through the sale of preferred stock. Underwriter—Blyth
&

Co., Inc., San Francisco,

June

was

proposes
new

October of this year a maximum of
200,000 additional shares of common stock. Underwriter
—William R. Staats & Co., Los Angeles, Calif.

Smith-Corona, Inc.
was announced stockholders on Sept. 30 will
vote on approving an offering to stockholders of approxi¬
mately $5,000,000 convertible debentures. Proceeds—For
expansion and to reduce bank loans. Underwriter—Leh¬
man Brothers, New York.
South Carolina Electric & Gas Co.

reported company plans to issue and

sell

$10,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive" bidding. Probable bidders:
Halsey, Stuart & Co; Inc.; The First Boston Corp. and
Lehman Brothers (jointly); Kidder, Peabody & Co.;
Eastman Dillon/ Union Securities & Co.
Bids—Not ex¬
pected to be received until next Fall.

(9/5)

Broadway,
New York, N. Y., up to noon (EDT) on Sept. 5 for the
purchase from it of $7,500,000 equipment trust certifi¬
cates, series YY, due annually from Aug. 1, 1958 to 1972,
inclusive. Probable bidders: Halsey, Stuart & Co. Inc.;

Bids will be received

by the company at 165

Salomon Bros. & Hutzler.

also announced Blackstone plans
stockholders (other than Eastern

tooffer
Utilities

parent) and to common stockholders cof
the latter the $2,500,000 of common stock of Valley
Gas Co., it is to receive as part payment of certain
Blackstone properties. Dealer-Manager—May be Kidder,
Peabody & Co., New York.
its

Virginia Electric & Power Co.
Miarch 8 it was announced company

(12/3)
plans to sell $20,-

000,000 of first mortgage bonds. Probable bidders for
bonds may include: Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Co. and American Securities Corp.
(jointly);
Salomon Bros. & Hutzler;

rities & Co.;
Weld & Co.

Eastman Dillon, Union Secu¬

Stone & Webster Securities Corp.; White,
Bids—Expected to be received on Dec. 3.

plans to sell an issue
convertible subordinated deben¬
tures.
Proceeds — To finance plant expansion and in¬
crease working capital.
Underwriters — May be Paine,
Webber, Jackson & Curtis and Blair & Co. Incorporated,
of

6 it was reported company

than $5,000,000

both of New York.

Aug. 1 it

was

sale the first three

Walworth Co.

plans to issue and

sell in September or

Jan. 14 it

was

common

Associates

Calif.

company

to dispose by negotiated

securities mentioned in this paragraph.

April 15 it
to its

Aug.

announced

★- Southern Pacific Co.
Northern. Illinois Gas Co. (9/25)
July 1 this company announced that it is planning to
fnise between
$8,0.00,000 and $10,000,000 early this fall.
A0
decision has been made as to. the form of the proPosed

10.

and Dean Witter & Co.

Siegler Corp.

(8/26)

RR.

sell about

30,000

Power & Light Co.

Oct.

Boston

repayment of bank loans and new construction.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First

construction.

System

announced SEC has approved the merger
of the five following subsidiaries: Essex County Electric

Loeb

be received

★ Toledo Terminal RR. (10/10)
Aug. 12 it was reported company plans to issue and sell
$6,000,000 of first mortgage bonds. Proceeds—To refund
like amount of bonds maturing on Nov. 1, 1957. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp. Bids—Tentatively expected to be received on Oct.

March 12 it

bentures.,

New

—

For

—Expected to be received

(9/16-20)

announced company plans to offer pub¬

was

New York.

Southwestern Bell Telephone Co. (10/1)
May 24 directors approved the issuance of $100,000,080
new
debentures.
Proceeds
For expansion program.
Underwriter—To be determined by competitive bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co. Bids — Tentatively expected to

Price—$31 per share. Proceeds—To increase capital and
surplus. Underwriter—Kidder, Peabody & Co., New York.

For

•

Southern Union Gas Co.

(jointly).

For preferred stock—Eastman Dillon, Union Securi¬

May 16 it was reported company plans to issue and sell
about $10,000,000 of debentures this summer. Proceeds—
For construction program. Underwriter—May be Blair
& Co. Incorporated, New York.

Corp.

announced company may consider an offer¬
ing of new common stock within the next year or so.
Proceeds—About $19,000,000, for investment in common
stocks

Sept. 25.

reported company plans to issue and sell
$20,000,000 of first mortgage bonds. Proceeds—To repay

curities

early registration statement is

York....

Middle

issue

expected to be received by the company some
time in the Fall for the purchase from it of $14,400,000

sey,

Aug. 6 it

May 15 it

Bids are

Bids—Expected to be received

★-Northerii Indiana Public Service Co.

Nashville RR.

Louis wMI'e &

Co., Inc.
,

bank

April 16 it was announced company plans to sell later
this year $40;0Q0,000 of nst mortgage bonds, series J.
Proceeds—To refund $12*000,000 of series C bonds due
Jan. 1, 1958 and for construction program. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; The First". Boston
Corp. and Blyth & Co. Inc. (jointly); W. C. Langley &
Co. and Smith, Barney -& Co. (jointly). - :

Under¬

writer—For any bonds, to^ be determined by competitive
bidding/ Probable bidders: Halsey, Stuart & Co. Inc.;
The First Boston Corp.; Glore, Forgan & Co.; Blyth &

to;

(823)

stock. Proceeds—For construction program.

mon

company

;

ly).-

Chronicle

Wisconsin

Public Service

Co.

May 29 it was announced company plans to issue and
sell about $7,000,000 of first mortgage bonds and about

$5,000,000 common stock. Proceeds — For construction
program and to repay bank loans.
Undenvriters—- (1)
For bonds, to be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co.; The First Boston Corp.; Merrill-Lynch,
Pierce, Fenner & Beane; Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co. (jomtly);
Witter & Co.; Lehman Brothers; White, Weld & Co. ^(2)
For any common

stock (first to

stockholders on a 1-for-

basis): The First Boston Corp., Merrill Lynch, Pierce,
Fenner & Beane, Robert W. Baird & Co.. and William
10

Blair

Co.

(jointly).

Registration—Of bonds m Sep¬
August.

tember; and of stock in
*

Wisconsin Southern Gas

Co., Inc.

July 8 it was reported company plans to offer up to
$300,000 of additional common stock to its stockholders.
Underwriter—The Milwaukee Co., Milwaukee, Wis.

The Commercial and Financial Chronicle

(824)

•

••

•

Make Gains

Mutual Funds

share for each of the

By ROBERT R. RICH

Scudder, Stevens & Clark Fund,
reports total net assets of

Inc.

$68,739,548 on Aug. 16, 1957,' equal
to $34.41 per share on 1,997,507
shares outstanding on that date.
with total net

as¬

of
$59,673,688 a year ago,
equal to
$38.69
per
share on
1,542,223 shares then outstanding.
sets

Scudder, Stevens & Clark Com¬
mon Stock Fund, Inc. reports total
assets

$15,830,146 on Aug.
1957, compared with $13,833,-

16,
297

year ago.

Per share net

as¬

set value is

$23.05 on 606,872 out¬
shares, compared with
$25.36 per share on 545,506 shares

Outstanding at that time.
■

•„ *

•

••

(

Fund Assets

now

with Merrill Lynch,

ago.

a year

In July new

age

The

totaled .128,094, the Association
like period of last year was 97,564.

total

"This

reported;

MUTUAL

end

the

of July

1957, 5.6%

(

.1957 such assets constituted
the

increase

protection

against

19.42%

the

short-term. market

commented.

■

A number of

portfolio changes were made during the quarter,
Mr. Lovelace reported.
Additions to common stock holdings in¬
cluded those of Ideal Cement Company, Richfield Oil Corporation,
Vanadium

Corporation

America

Westinghouse

and

Electric

Corporation.
Among holdings which were significantly

nated

reduced or elimi¬
Allegheny Lucllum Steel Corp., American Metal Co.,

were

Ltd., American Potash & Chemical Corp., Traders Finance Corp.
Ltd., Union Oil Co. of California, United States Gypsum Co. and

of June and

at the end

was

Mr. Lovelace

Holdings of cash, U;S. Government securities and short-term

accomplished with vdry little loss in income since U. S.
Government Treasury Bills yield an unusually high, return
by
comparison with the rates prevailing over the last two decades,"

Repurchases of open-end company shares (redemptions) to¬
$37,298,000 for July and $33,077,000 for June. In July a year
ago, the figures was $36,629,000, the Association stated.
•,
,•
;

: >

compared with 11.51% at April 30, 1957.

risks

taled

at the end of July a year ago.

4.7%

•

At July 31,

quarter.

The number of accumulation plans opened during the first
1957

This is

proportion of assets represented by cash; and U. S. Gov¬
obligations was substantially increased during the last

ernment

obligations by the 136 open-end companies totaled $553,943,000 on
July 31,;compared with $544,246,000 a month earlier and $426,732,000 at the end of July 1956. This represented 5.6% of total

')*■ '■>

new

Net income for the corresponding months a
$1,028,666, or 20.1 cents a share on the 5,122,468 aver¬
number of shares then outstanding.
.

accumulation plans opened for regular monthly

the period.

during

quarterly investment in mutual fund shares totaled ,19,544
compared with 16,609 for the previous month and 14,08'J for July
months

19.4%

at July 31, 1957, reached

year ago was

;

assets

$9,077,896,000 at the end of July

excluding realized gains on sales of securities, for
the nine months ended July 31, 1957 was $1,500-,032, equal to 19.4
cents a share on the 7,741,390 average number of shares
outstanding

Investor purchases of open-end company snares during July
topped the $100,000,000 mark for the 19th consecutive month,
reaching $135,025,000,. according to the Association report. Pur¬
chases for June were $104,661,000 and, in July a year ago, were
$123,829,000.
v,
'7,.V 'v./.:'

Beane,r29 Page

Avenue.

and

19=57

Net income

continued to rise last month and, on July 31, stood at $9,816,489,000,
was announced.
This compares with $9,687,015,000 at the end of

dune

8,354,480 shares then outstanding.

$8.55 per share.

The figure for the

ASHVILLE, N.- C.—Thomas ' H.

July 31; Investors
Month

Assets of the 136 open-end investment company '(mutual fund)
members of the National Association of Investment Companies

seven

(Special to The Financiai. Chronicle)

Staton is

$9.8 Billion

$13,848,909, pr 24% over the $58,652,651 of total,'.net
assets at the beginning of the period, Oct. 31, 1956, At that
date,
there were 6,857,155 shares outstanding with a net asset value
of

Purchase More Than $100 Million for 19th

of 1956.

With Merrill Lynch

Pierce. Fcnner &

;

increase

standing

<v,<"

high in total net assets, Jonathan B. Lovelace, President, announced
in a nine months report to shareholders.
Total net assets at July 31, 1957 were $72,501,560, or $8.68
per

In Net Assets

net

Thursday, August

...

Mutual Fund, Inc.

American

compares

•

American Fund Boost Cash to

Scinlder Funds

This

•

United States Rubber Co.

INVESTMENT
reinvesting

Canada Fund

FUND

Ixoliicrs
-

which1 this

•*

30, approximately
105,000 U. S. investors had shares

GwttfA S/ortti Se liei M

the

fied

sale

for

United

invested.

form of private

that
is not an expense to United States
tax
payers
and which .benefits

eight Canadian investment
companies whose shares are quali¬

Xitumal
,

foreign

money

This constitutes

June

keep

economic

assistance

United States investors." *

States

WRITE FOR

ported.

FOLDER AND PROSPECTUS TO

000

YOUR INVESTMENT

Companies re¬
This increase of about 8,-

shareholder

1956.

With

eight

Jones

total

$381,417,357

Committee
.

crease

996

net

23%

increase

assets

phase

over

DEVELOPMENT

over

FUND, INC.
GET THE FACTS AND FREE PROSPECTUS

Development Securities Co., Inc.

1033 THIRTIETH STREET, N. W., WASHINGTON 7, D. C.

Tel. FEderal 3-1000

vious

ported

primary

assets

ating
Great

Britain

Canadian

and

Africa.

investment

the

natural

resource,

reflecting
of

Canada

the
and

policy

these

and

the sale

EATON
.

& HOWARD,
Incorporated
24 Federal St., Boston, Mass.

the

first

half.

cautioned, this view
optimistic.

But,

may prove

"If

may

so," he con¬
have rather bet¬
than at present

ter

opportunities

for

investing the rest of

cash

our

net

would

other

vide

ital abroad which

late

tl^e

friendly

economic

countries,'

market

the

price

unreasonable

taking advan¬

management

correction

ent scale of

even

feels

the

may

not

have

To fill

our

pres¬

orders," he concluded,

"would require

decline,

why, he explained,

been completed.

to stimu¬

growth^

purchasing-

tage of the present decline,

pro¬

but' also,

That is

though its

States cap¬

serves

push

the fund has begun

to shareholders.

flow of United

rapidly

level."

securities, rather than

Consequently they not only

buying program

any

most securities to

investment

mar¬

period of falling prices, other¬

wise any concentrated

economic

gains realized from

distributing them

the

good deal

averages

and

in-

dividual shocks, Jftan swe,,lia ve yet
seen."

f. 1

*'•» YV

to¬

company

year

ago.

outstanding increased to
663,295 from 611,079 six months
previously and 546,555 on June
30, 1956.
June

stocks

added

quarter

were

its

June

30,

1957,

semi-annual

re¬

during

the

American-

The first
"broadened participation in
big Federal road building

gave
the

such aspects as cul¬

and bridges.
The addition
Magnavox was to get one of

the

best

products

the

time

industry

manage¬

other

industry

investments

have

rather

Among

and

television

when

been

quoted

heavy
discount."
changes, holdings

Transportation,
Electric, Harris Trust &

Savings

Bank,

Walter

Heller,
International Business Machines,
Motorola, Scott Paper, Sears Roe¬
buck,
Southern
Natural
®Gas,
Square D' and Woodward Iron
increased during the period.
Borg-Warner, Olin Mathieson and

were

Sutherland

Paper

were

sold.

Discussing current investment
policy, Harland H. Allen, Presi¬
dent, said that investments "have

the

tal

gains

$9.33

ment)
ment

exclusively in common
(plus cash awaiting invest¬
in

can

part
see

because

manage¬

little virtue in buy¬

ing fixed interest securities while
government

continues

ing interest rates
tool

for

over,

use

ris¬

its

principal
curbing inflation. More¬

since

bonds

best

serve

principally for liquidity or sta¬
bility,
and
other
methods
for
achieving such purposes are being

increasingly used in a 'managed
economy,' we propose to keep the
investment. program
aggressive.
In-a strongly
inflationary period
we

best

cents

believe

that

also

type of defense:"(

the

date

the

June 30, 1956.

common

adding back
as capi¬
months frofn

share paid

stock investments

made by the fund
halt

during the first

1957, according to the re¬

port, included Chance Vought Air¬
craft, Georgia-Pacific, Otis Ele¬
vator, Chas. Pfizer, National Cash
Register, Union Oil of Calit., Alle¬

gheny Ludlum
South

West

common

amounted

Steel and Central
Corp,
The total
investments

stock

87.44%

assets at

the close of the half year

representative
with

the

oils

largest at

and were

industries
3.88% of

assets.

Roy

Coffin,

shareholders

President, told

that

characterized

selectivity has

portfolio

the fund's

time. Pur¬
chases, he pointed out, have been
concentrated for the most part in
individual issues with substantial
operations

for

some

built up in several
improving investment
quality. Among these he listed A.
O. Smith, Outboard Marine ana
Georgia-Pacific.

commitments
stocks

Johnston

Fund

Mutual

ports net assets

Inc. re¬

19a7

June 30,

$6,147,196.03
equivalent to
$21.56 per share on 285,133 shares
of

outstanding.

This

compares

witn

$5,728,085.95, or $21 per share, on

$5,423,565.8;), or
19ob,
these
respective dates. A capital gains
dividend of $0.50 per share was
paid by the fund on Dec. 21, ly° •
Dec.

31, 1956, and

$21.83 per share, on June 30,
on
shares
outstanding at

Equity Corp. Reports

continued
stocks

that

to $9.57 a share after

Steel, Food Fair Stores,

General

assets

net

Net asset value in the period rose

Marietta and Magnavox.

General American

in¬

$9,011,235

of Armco

majority of

extrac¬

and

reported

Mr. Barringer observed that "in

companies retain and continuously
reinvest dividend and interest in¬
come

1956

for the year as a whole than those

for

6.1%.

rose

the

that

companies

cross-section

noted, favors a good fourth quar¬
ter, sparked by automobile sales,
and
consequently better figures

kets make it imperative to do the

representing

"By

reserve."

countries of the Free World.

from

opinion,

per

as¬

ments

ings

growth

Dealer

market

power

cither case, the present thin

dustries

Investment

buying
exhausted," he added.

tinued, "we

These

tive!,: manufacturing and other

your

course.

our

value, net

program, with more than previous

have diversified investment hold¬

Prospectuses available

re¬

$11,046;485 on June 30 last,
against $9,585,797 at the end of

verts

its

run

June

taled

reac¬

has

from

year

majority of all listed

assets

agement doubts the current

too

than
$20,000,000 of their
invested in companies oper¬
in Latin America, Holland,

Net

emphasis

Canadian securities,
companies currently nave

these

set value

man¬

General

em¬

$5,916,279 for an in¬
crease of
$1,395,948 over the total
of $4,520,331 12 months previously.

New

He stated that Delaware's

been

ors. <*

would

their completion.

upon

"Neither

benefit to American invest¬

in the

positions

tionary phase has

capital to other friendly countries,

phasis

ago

holdings, and indicated the

new

the

declined

New

foreign

their

program

months

Mr. Barringer said in most cases
the stocks were additions to
pre¬

figures

"Although

several

light of
recent developments.

policy objectives
subscribed to by both the Demo¬
cratic and Republican administra¬
tions for stimulating the flow of
private United States investment
with

investment

out

stocks

threefold

the

indicate,"
the
Committee stated, "how practical¬
ly the Canadian portfolio com¬
panies are implementing the im¬
portant

Government bonds.

and since modified

few

"These

MUTUAL

mapped

$71,151,the $310,265,361
was

1956, when

funds held

reserve

action, D. Moreau Barringer,
Chairman, says, marked the first

about

was

short-term

Dow-

This

$126,245,729 for
the five Canadian companies in
operation at the end of 1954.

ATOMIC

Dept. C

the

share¬

.per

date

at the end of 1956 and

through

Atomic

that

out

the

prompted Dela¬
begin purchasing

with

commons

$3,635. For the first half, the in¬

ATOMIC SCIENCE

)

Averages
Fund

ware

amounting
June 30, the

pointed

the

assets

funds

investment?

average

holder

invest in

net

Canadian

Including distributed

During the first six months of

The recent decline in

ago.

years

To Commons

publicly

companies three

Shares, Inc. on
$16.65 against

was

capital gains, net asset value was

Commits Cash

recorded

net assets in the

ended

amounted

per

Dec. 31, 1956, and $16.49

ago.

year

5.2%

investment

1957,

oU.

RESEARCH CORPORATION

Industry

30,

$15.69
a

value

asset

held

Broadway, New York 5, N. Y,

Net

up-

the

months

Total

Fully Invested

steady

continues

Fund

increase in

port.

waid trend shown since establish¬
ment of the first of these

120

six

accounts

NATIONAL SECURITIES &
Established 1930

according

months

DEALER OR

TyO Rcillclill

Growth

Delaware Fund

Investment

FREE INFORMATION

31%

June

investors, The Committee of Cana¬
dian

Philadelphia

Growth Fund

inSs at work in the countries in

AAA

;Up.
by
A
V

earnings,

their

both their capital and their earn-

"L*

I T

The

Corp.,
June

30,

ai
$275.19 pel
convertible preferred

equivalent to

$50

(preference
share

per

and

liquidation
accumulate

dividends), and $6.22 per
common

ble

share o

stock.

Comparable figures for
1956

^enerc,

the six months enc
1957 show net assets

for

that date

stock

of
wholly -

statements

consolidated

Equity Corp. and its
owned subsidiary, Equity
The

were

$259.68 per $2

preferred share and

Dec.

•

converti¬
So-78 pel

•

;

•'

•;

Number 5666

186

Volume

•

The Commercial and Financial Chronicle

...

Supply for Small Firms

has not affected

small

business

Kansas

been

very

City

(10)—The

outlook

and

cattle

has changed for

the better since last year, and the
consensus
is that the outlook is
excellent.

severely.

Bankers across the country are

National

optimistic about the
for
general business

;V.

Survey By Districts

conditions during the second half

to the semi'
of business and *
Boston (1)—General business
credit
conditions
completed
by conditions are considered favorthe'Credit Policy Commission of *b\e- The outlook for principal
the American" Bankers
Associa- industries is good, with improve-

according

1957,

annual

survey

ment expected in areas which are
or have been soft. Slowing up of

Bankers polled in the survey

tion.

commented

particularly

the

Recounts

health of American small business

noted

that

taking

care

and
are

needs

credit

banks

small

Another

men.

-Pressed

business

survey

continued inflation-

over

ary pressures.

the

Monetary Policy Department reveals bankers deny tightening of

dents

credit has affected small business

nounced

severely.

collections

appears to be a widespread cornplamt, and some concern is ex-

generally
legitimate

all

receivable

New

York

change

from

a pro-

adverse

heavy

and

San
many

New

York,

bankers

City.
"the

extraordinary

thing; about

that

may

some

the

very

rains

this

manufacturers

will

continue to operate at high levels
of

survey

Heavy construc¬
roads, utilities, and
plants will be at good levels; and
such

growth factor is still impor¬

Another

the

bank credit in its

extensive

through¬

the

than

judgment

For the most part, greater selec¬

bank

credit

tivity in bank lending has taken
the form of stricter credit review.

cussions.

and

A substantial proportion

of bankers report that bank
is
"readily
available"
in

most

credit
their

the

re¬

being only "somewhat tight."

Only about

one

dred

regards
tight."
The

banker in

replies make it

hun¬

being

"very
that

clear

five bankers
out
of
six who lend to both large

every
,

small

credit

tend

curtail

medium-sized

banks,

whose business loans consist pre¬

small business

year.

: ; >

;

{

■ ■

exceptions-to WC

eoi. ensus.

To-

sure,

were

automobiles, housing, and egricul-

squeeze

dominantly of credits extended to

their localities

inability to obtain

Credit

the

vast

affected

credit
the

the

tightening

has

occurred

credit
the

which

past

two

concerns,

less

been

tightening

the larger banks.

than

have

the

reporting banks with deposits
less

than

$50

one-third

i\/jnJ1y

Jure seem to
give ess ■concern> : with
tjme hj the past yeai

"quite

million,

tively few"; and

that

bank

reported

state

Slll.ate

with

the

The survey

parts of

"very

all

(he

country on the general outlook, the inventory situation, credit demands in specific
fields, construction, interest rates,
and

other

elements

the

first

half, with

cline.

The

industrial

condi¬

about

sales.

match

the

tendency to de-

West

Virginia

is experiencing an

area

year

Second half of

—

should

year

the

commen-

volume

Cleveland (4)

polls bankers

the

all

expansion,

trade

announcing

excellent

will

which

increase employment and payrolls
in the District.

tion of business. These repoits are

then summarized for each Federal
Richmond

Reserve District.

(5)—OUtlook* favor¬

able for most industries, except in
the southern regions,
where to¬

Prosperity With No Boom

bacco, furniture,

and

hosiery

are

the current report, a few in¬
dustries, notably tobacco and textiles, are singled out for mention
as
facing special problems; but

actlvitTto^somrbxtent'

the Commission notes that indus-

tory

try

spending
continues
to
be
high,
There is a high degree of cornpetition in business resulting in a

expected

that

evidence

expected

top

boom

the

Atlanta

the

vey

shows

credit

that

the

demand

ment

Mortgage
They are

for

Loans

estate

sales

loans

steady

are

pected

loans

demand

for

cxpansionary
in general.

appears

automobile

between- those

-slight-rise

and'.those,

the

experience
results in¬

good

very

parts,

Write or <

MPLS

Ml**

ut»"weB

electronics,

aircraft

parts,

Louis

(8)—The

good

activity

for

will

ex¬

the

first

six

1957 and slightly ex-

activity for the

area

outlook

and

same

period

Industrial expansion in

continues

high, and

some

of highways, streets, Federal
buildings, schools, and othep pub-

credit
the

Iic buildings in the

area indicate
increased business activity.

look

fields.; and

■

very

good.

industrial

at high levels.

predicting a.activity
•

(9)—Business out-

Minneapolis

the

expecting

•

p
distribut°r

ii'cc l>

local

The" into the areai Public construction

decline.tHeiiei'lSfgrab;geographical
Pattern, however.

in a

ol,r

agricultural supplies.

last year.

opinion

loans

l0n

ceed

industry

diversity of

and

auto

ceed

■

regarding

appliance
As

trend

•

similar

culturally. New factories coming

n„„v-lct.

in'01

Founded

likely

months

ex¬

bankers.

because

complete

pXVE^s

diversity of opinion
this, type

Get

with

period,

slight improvement is noted agri-

strong

stc

VIDINGtV^
options

will
the

although

individual

continues

third

clude

St.

either

also

are

little,

common

quarter softness
industries
men-

1956

Other

steady

and

f„

pn«iarlS

mutual invcf

agree¬

activity
levels.

FuND

investing

better than in the

com-

expected

General

pharmaceuticals,

credit, and real

change

is some

among

finance

satisfacConsumer

automobile industry

economically

with -little ,change,
Term

way.

there

usual

tioned

months.

consumer

high

area,

likely.

are the exception.
generally expected to
decline slightly.
They predicted
little change in demand for small
business loans under $50,000 dur¬

Panies,

fmd

business

regarded

the

high

loans

ing the next six

—

corresponding

factors.

seasonal

•

prospects for the next six months

moderate rise in certain sections

largely

(7)

that

Detroit

aud constant, with some chance of

due

yment

profits. Good managea premium,

continue

sur¬

expected to remain

lines.

most

Chicago

present

credit,

reduce

ment ability is at

are

field

off

Outlook

(6)-

squeeze

prosperity.
In

level

acuvlty 10 some extent,

is
becoming
so
diversified
everywhere that the good and bad
tend to balance out to a broadly
favorable prospect.
Most bankers
eXnect
a
period of stable, high
activity,
with
employment,
in¬
come, and demand for credit rewas

•

greater
stage,

continue

It is expected that

the Iron Range will be,

than

the

Employment

activity

last

crop

year.

outlook

At
is

this

quite

;'>|ALSO

jjj^.
V?v.

EXCLUSIVE DISTRIBUTORS OF

much credit

Less than
answered

number"; 27% said "rela¬

however*

projits>

suffering from
as

the respondents

will end

concerns

profits not at

are

they really deserve,

a^lfS

also asked in the

small

references

^Sn!f

not

than to large

for their judgment as to
how many small business firms in

-m.ss
]enj-

of their importance. Even

lending

survey

conditions should' be excelNo significant change is extoy inflation- pected in steel' and metal prodary
pressure,
a
.profit squeeze,: [ f
or - in' textiles
Oil refinine
and Resulting
keen competition; but these seem underemphasized.
Competitive conditions are forcing
in view
r

hopeful

does

their

Many bankers point
out that there is often a tendency
in exactly the opposite direction
of giving special consideration to
loan applications for smaller com¬
panies.
;;

(3)—General b„sU

theie. ale

that

review

corporations.

high level of the first half of the
-

state

concerns

stricter

Bankers

and

small

tight."

stringent position.

However,

"somewhat

that
more

Small Firms Are Favored

degree ot which

and

said

locality is

American

Association.

localities,

of '20

out

merely

generally has tightened has been
greatly exaggerated in public dis¬

majority of the nation's bankers,
of

one

Survey

over

than

Replies from banks in the large
financial centers reflected a more

tant in many areas.

that

bankers

"readily available," and

conclusion

major point indicated by
the replies to the survey is that

employment.

tion

Policy

less

out the country recently conduct¬
ed by the Department of Mone¬

tary

credit

This

another

among

undue

mainder characterize the situation

electronics

current

business

continued

from

emerges

with

business.

dip slightly below the sustained

New

York
Mr. Moore pointed out that

feel

Francisco (12) — Due to
factors," the airframe and

President, The First National City

effects

business

except

Spring.

respon-

levels; however, a minority feels
Results of the business outlook that there may be some improvesurvey
were
made
public
by ment in the major economic indiGeorge S. Moore, Chairman of the [ cators before the end of the year.
Commission, and Executive Vice- In the New York City area, some
Bank

the

(2)— Most

little prospect for

see

for

types

be better

borne

small

overall

One

capacity, and virtually no unem¬
ployment, business conditions are
good and would

not

the

(11)—With the principal
industries
operating at or near

Some prospects revealed by the
survey in various Federal Reserve
Districts are:

Bankers

Dallas

unusually
prospects

has

years

severity

for the principal industries in this
area
is good.
The situation for
crops

show most bankers optimistic about the business outlook for
the rest of 1957 and firm in their belief that credit
tightening

has

adequate.

completed by the American Bankers Association

Two surveys

moisture

good;

| Bankers Polled on Business Outlook
And Credit

(825)

Investors Mutual, Inc.,

Investors Stock Fund, Inc., Investors Selective Fund, Inc., Investors Group
Canadian Fund Ltd., Investors Syndicate of America, Inc.

few,

than 71%

any."

The Commercial and Financial Chronicle

(826)

The

Indications of Current

Business Activity
AMERICAN

IRON

STEEL

AND

steel operations (percent of capacity)
Equivalent to—
Steel ingots and castings (net tons)

AMERICAN

month available.

month ended

Latest

Month

Year

Week

Ago

Aug. 25

,§82.9

*80.6

79.4

95.8

condensate

and

—Aug. 25

§2,123,000

*2,062,000

2,033,000

2,353,000

gallons each)
Crude runs to stills—daily average (bbls.)
Gasoline output (bbls.)
Kerosene output (bbls.).
Distillate fuel oil output (bbls.)

Aug.

6,797,400

6,882,050

6,843,350

7,085,85G

Aug.

(18,008,000

*7,919,000

,7,972,000

7,985,000

—Aug.

27,797,000

27,417,000

26.861,000

27,664,000

Aug.

2,068,000

2,045,000

1,752,000

2,411,000

Aug.

12,077,000

13.u0u,u00

1^,321,000

Aug.

7,548,000

7,561,000

7.739,000

7,859,000

—

fuel oil output (bbls.)

Finished

transit, in pipe lines—
unfinished gasoline (bbls.) at
—Aug.

and

11,8
,

172.973,000

32,554,000

31,454,000

181,973,000
29,253,000

177,557,000

—Aug.

Distillate fuel oil (bbls.)

—Aug.

141,999,000

138,230,000

125,564,000

124,173,000

Residual fuel oil (bbls.)

—Aug.

50,138,000

*49,140,000

47,020,000

45,541,000

freight loaded (number of cars)
Aug. 10
Revenue freight received from connections (no. of cars)—Aug. 10

740,471

740,711

691,991

715,207

(bbls.) at

ENGINEERING

AMERICAN
of

CONSTRUCTION

*175,994,000

Private

Public

604,541

601,396

481,118

Crude

$386,363,000

$258,080,000

.Aug. 15

229,798,000

147,396,000

202,280,000

147,461,000

—Aug. 15

150,863,000

184,083,000

110,619,000

154,732,000

127,719,000

141,904,000

100,654,000

27,387,000

23,144,000

42,179,000

9,965,000

STORE

—

Aug. 10

9,690,000

*9.750,000

7,550,000

9,386,000

Aug. 10

512,000

551,000

77,000

583,000

SYSTEM—1947-49 AVERAGE
ELECTRIC

Electric

100

Aug. 10

(COMMERCIAL

BRADSTREET,
IRON AGE

COAL

OUTPUT

steel

July:

Electrolytic

AND

INDUSTRIAL)

—

DUN

INC

(per

COPPER

(tons

Refined

tons)-——v.'

month

Louis)

(St.

(delivered)

Aluminum

of 2,000

(tons

U. S.

Aug. 17

12,409,000

12,070,000

12,306,000

11,794,000

-.Aug. 15

222

265

266

289

Aug. 13

5.967c

5.622c

—

Aug. 13

$66.40

*$66.40

$64.95

$63.15

Aug. 13

$53.50

$53.83

$54.17

$56.83

23.075c

28.100c

28.825c

39.700c

Aug. 14

25.875c

26.075c

26.650c

37.700c

Aug. 14

14.000c

16.000c

Aug. 14

13.800c

15.800c

lug. 14

10.500c

14.000c

10.000c

13.500c

Aug. 14

26.000c

25.000d

25.000c

—Aug. 14

94.250c

94.750c

96.625c

98.625c

—

(New York)

BOND

Aug. 14

—

at.

—

(primary pig. 99% ) at

tin

—

Group

Utilities

Group

BOND

Baa

YIELD

DAILY

,131,299

155.365

60.671

•'•127

128

*121

101

165.549

ll
•

end of

Railway Employment at
July (1947-49=100)

METAL

<E.

94.26

104.14

Lead—

101.80

85.72

97.00

Vug. 20

88.67

88.95

89.92

100.49

vug. 20

91.05

91.48

93.08

102.13

Aug. 20

91.91

91.77

93.38

103.13

Aug. 20

3.63

3.65

3.22

Aug. 20

4.37

4.36

4.27

3-63

4.00

3.45

4.21

4.12

3.50

4.22

3.64

—Aug. 20

4.83

4.81

4.73

3.94

•

4.51

4.49

4.34

4.31

4.28

4.29

4.18

3.56

428.2

429.8

423.7

4.42

Common, New

transactions initiated

Common, East St.

the

Zinc

Silver

and

New

London

York (per ounce)
(per ounce)
Sterling Exchange (check )_i
Tin, New York Straits
—l-

■

4.20

3.72
..

Gold

3.62
'

(per ounce, U.

'tCadmium,. refined

504,138

506,493

—Aug. 16

110.36

110.32

"iCadmium

(per-

pound)-.

519,034

§Cadmium

(per

pound)-,

110.21

.July 27

1,160,960

1,522,820

.July 27
.July 27

1,307,310

195,480

283,060

227,670

1,035,280
1,230,760

1,242,660

1,134,930

1,525,720

1,362,600

1,427,210
303,670
1,160,070
1,463,740

July 27
July 27
.July 27

221,320

286,330

346,100

11,400

221,400

18,700

29,200

224,630

21,700

242,410

218,990

>u,y 27

236,030

261,110

248,190

275,280
296,980

366,560

486,402

452,091

54,470

521,955

77,450

84,090

101,410

383,896

508,207

445,372

438,366

625,620

585,657

529,462

727,030

.July 27

1,748.840

2,295,552

.July 27
.July 27
.July 27

2,005,501

261,350

2,170,565

379,210

340,960

1,643.806

1,993,277
2,372,487

1,799,292

426,780
2,060,970

2,140,252

2,487,750

1,905,156

short

other sales

Other

1,469.140

juiy 27

1,243,296

$60,824,132

$76,557,055

$67,174,539

1,297,777
$73,870,605

943,451

1,195,715

918,676

4,355

1,038,124

5,224

4,958

8,002

j„

913,718

1,030,122
$53,447,057

939.096

sales

deafers—~
SALES ON

THE

1,190,491
$58,980,325

$46,955,483

jniv on

sales

™„ROlJND-I'OT ST0CK

1,204.429

Tl,iv on

ZLJT

Round-lot purchases
by
Number of shares

228,670

286,930

$47,024,644

MOTOR

VEHICLE
IN

number

Number

207.870

Number

motor

Month

Stocks

228,670

286,930

207370

276J80

461.950

542,260

536,590

522,500

DEPT.

Capacity used
RAILROAD

rml J?

405.140

9.281,380

524,710

11,425,920

9,471.820

9,614.590

10,465,620

11,867,950

9,876,960

10,990,333

CLASS

36.590c
33.000c
33.500c

$90,154

$92-000

$1.70000

36.470c

,33.000c

„

33.500c,

$105,000

$1.70000

$.1.70000

$1.70000

$2.00000

$2.60000

27.100c

25.000e

25,000c

35.250c

74.000c

$2.25

25,900c

Not Avail.

33.750c
64.503c
'•

591.039

593,387

522.018

495,918

500,669

440.980

94,803

92.349

80,731

318

369

307

ROADS

29,606.000

27,485,000

23,967',000

28,940.000

23,125,000

31,787.000

34,893.000

23,204,000

110

$867,914,780

$906,512,551

$.899,996,931

685,783,378

713,552.984

683.793.182

79.02

78.71

76.20

$86,895,657

$91,009,454

74,030,563

80,798,427

58,000,000

65,000,000

$96,686,233
.95,258,445
'79,000,000

(AS¬

revenues—

RRs.)—Month

Total

operating

expenses

—

Taxes
Net

railway operating income before charges
Net income after charges-(estimated-)
RUBBER MANUFACTURERS

INC.—Month

Passenger Tires
Shipments

May:

(Number

of)—.

;

/ "

Tires

(Number

Production

L_.

8,056.507

8.104.3G2

8.312,496

7,878,438

18,049,621

17,821,312

1_"
■

of)—

1,071,623

1,358.035

3,486,248

3,582,091

•

Truck

and
"

Bus

1,263.694

1,177,927
3.580.155

_1_

(Number of)-—

1.276,829

1.093,762

—

■

7,616,521
7,628,428
17,714.007

•

of)—''

."_Z

Inventory
Passenger, Motorcycle,
Tubes

<■

ASSOCIATION,,

292,801:

380.796

319,612

282,271

703,307

669.130

277.803

-237.745

808.157

Inner

2,877,726

3.104,148

3.213,944

118.0

~A.ug[

*118.1

118.0

114.5

92.7

*93.1

92.9

89.0

106.4

*106.8

107.1

102.8

97.9

98.7

99.2

83.2

125.6

*125.6

125.5-

Production

on delivered basis at centers

Tread

new

orders

capacity of 133,495,150 tons
not reported since introduction of

where freight from East St. Louis exceeds

7,421,546

"Revised figure.

East

St.

34.671,000

—

6,968.638

7,657:327

Louis

*33,788.000
*29,531,"000

exceeds

—,—

the producers' auotation.

quotations,
more

g Average
sn.vera.gtr

of
ur

—

carload

0.5c.

Fort

lot

mean

and

bid

and

ask

quotation

33.077.000
32

190.000

25,431.000

iEased on the average

quotation -uii
quuiauun
on-special
spcuw

but less-than
**F.o.b.

*34,927,000

35,871 000

boxed.

o""'-

ot!

tO'
-P
;

§§Delivered where 1

Colburne, U. S. duty included.
Tt
,
at morning session of London Menu
"

age of daily
Exchange.

092.804

"3.427,612

31,049,000
—,

tBased

plater's'

■1i Domestic five tons
from

(pounds)"
(pounds)

and

(Camelback)—

Shipments (pounds)
Production

Inventory

122.2

annual

3,547,773

—^
—

Rubber

producers'

$2.25

33,175,000

AMERICAN

operating

runs.

Wutern Zinc sold

$35,000
$255,000

June:

Total

Jan1Sld i%7rC' Un<rludes 1-271,000 barrels of foreign crude
§Based
Plan ^Prirne
Wenernbzinc°snn'8nn63i°u° t0"Su t^umber of
one-half cent
of

EARNINGS

Shipments

a! f i?

pound.

(barrels)

Produfction

442.030

96.265c

98.060c

$35,000

$255,000

MINES)—

montn—barrels)

0tlieTl,h7uTam'and"fZoda

•

33.500c

(per cent)

; Shipments

333,210

Monthly Investment
a

Inventory
.w.
.Tractor-Implement Tires (Number
Shipments
"
'.

Aug
commodities

33.000c

•

—

mills
of

entt

Inventory

Processed foods

-•■

MANU¬

(BUREAU

90.137c
78.500cl

$2.79335

July:

All

commodities
Farm
products

90.456c
78.283d

$2.79024

FROM

—"I"„I™~Z—JuK 27
—

£92.341

—

PRICES, NEW SERIES
LABOR—(1947-49= 100):
Commodity Group—

£73.868

May:

Inventory
Truck and'Bus

.July 27

T.,„r 97

sales

(at

coaches

(barrels)

Production

„July 27
July 27

round-lot sales—

WHOLESALE

£73.745

27.100c

cars^

trucks

CEMENT
of

SALES

H.—AUTOMOTIVE

motor

Production

Short sales
~

£93.483

•:36.590c

■::<

vehicles

passenger

276,180

STOCK

sales

14.000c

£74.303

•'

ASSN.—Month

Number of

PORTLAND

13.500c

10.860c

£75.152

$1.70000

■

•

FACTORY

FACTURERS'
Total

■1

—_

EXCHANGE AND ROUND-LOT
STOCK TRANSACTIONS
FOR ACCOUNT OF
MEMBERS (SHARES):
Total
Other

——

pound)

(per

Operating ratio

julv 27

—July 27

by dealers—
shares—Total sales

11.360c

10.505c

78.125d

—

Bismuth

July 27

sales

Dollar value
Round-lot sales
Short

•

Aluminum, 99% grade primary pig——:
Magnesium ingot (per pound)—:
**Nickel
;
!

SOCIATION

SECURITIES EXCHANGE COMMISSION:
by dealers (customers' purchases)—f

Customers'

£112.040

$35,000

grade
:
Aluminum, 99% grade ingot weighted aver¬
age (per pound)

108.97

—

Customers'

£91.987'

$254,308

•TOCK TRANSACTIONS FOlt ODD-LOT
ACCOUNT OF ODDLOT
DEALERS
AND
SPECIALISTS ON
N.
I.
STOCK

(per pound)_——

488,517

Shipments from

£91.247

$2.78783

floor-

purchases by dealers (customers' sales)—
Number of orders—Customers' total
sales

£113.659

96.538c

S. price)lLi;_Jtii:_LLLL_

PLANTS

Dollar value

15.800c

£91.688

90.280c

271,685

Odd-lot

14.120e

£90.614

10.005c

——

273,441

.iug. lo

16.000c

13.800c

Sterling Exchange—y

Silver,

153,861

Not Avail.

14.320c

(per pound)—East St.'LouisC——'

199,159

Other

£228.809

14.000c.

Zinc, Prime Western, delivered (per pound) %
f+Zinc, London, prompt (per long ton)——
ttZinc, London, three months (per long ton)

359,226

Total round-lot transactions for account of members-

£219.587

Louis

282,952

July
uly
.July
.July

36.002c
Not Avail.

(per

279,462

28.410c

£227.132

(per pound)
long -ton):—
t'tThrec months, London (per 'long ton)"_T—_

ttPrompt, London

40.807c

26.727c
£217.549

272,100

Number

pound)

Aug. 10

.Aug. 10

sales

(per

Aug. 10

420.4

the flooT—

off

30.334c

78.3

•

sales

York

sales

28.690c

Quicksilver (per flask of 76 pounds)
HAntimony, New York boxed-----Antimony (per pound), bulk Laredo—
Antimony (per pound), boxed Laredo™—itPlatinum, refined (per ounce)--—

sales

76.7

„

.July 27
on

76.5

53,071,866

MEM¬

54,291,919

—

92.79

INDEX—

ACCOUNT

FOR

54,428,374

refinery (per pound)—
Export refinery (per pound)—

92.93

—

42,840.421

$696,515,000

July:
Copper—

84.68

—

•45,671,0.71.
1751,690,000

QUOTATIONS)—

Cobalt, 97%

transactions initiated

Number

91.05

sales

EXCHANGE

93.08

sales

PRICES

84.43

—

45,353,450.

$746,672,000

middle

90.91

4.09

period
PRICE

Vug. 20

4.34

LOO

TRANSACTIONS

Other

Index

Vug. 20

4.20

Number of ultimate customers at
May 31—

ttLondon, prompt (per long ton)
ttThree months, London (per long ton)

purchases

Short

—..,

INTERSTATE COMMERCE COMMISSION—

90.99

*120,336

*>. 101,993
1

105.00

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—

Other

—

101.97

—Aug. 20

OIL, PAINT AND DRUG REPORTER

Short

omitted)

86.71

.—Aug. 20

activity.
Unfilled orders (tons) at

*1]

136,713

RE-

customers—month

96.07

—Aug. 20

(tons)

ROUND-LOT

(000's

ultimate

92.06

Percentage of

Total

110.967

151,045

consumers—

86.69

—Aug. 20

—

May

ultimate

90.77

4.11

Group

AVERAGE

from

94.71

4.35

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)

Odd-lot

*105,952

' V'

INSTITUTE—

sales

88.85

Aug. 20

MOODY'S COMMODITY INDEX—

Total

!,%
104,254

—Aug. 20

Railroad Group
Public Utilities Group

Production

Month

AVERAGES:

—

Industrials

ELECTRIC

Kilowatt-hour

94-41

—

Other

0,519,000
1,869,000

2,564.000

Avcrage=100—

90.63

Other

SYSTEM—1947-49

Aug. 20

;

Aaa

Total

SALES—FEDERAL

Aug. 20

corporate

Total

STORE

—Aug. 20

Government Bonds

1049

39,030,000

•-*

—

Average

•

134,270
.'.yc--.
v

—■

19.776,000

fabricators—'<.,%•*,

—

266,706,000

14,699,000

1,505,000

•.

Domestic

Baa

pounds)——™—

Aaa

Industrials

EDISON

PRICES DAILY AVERAGES:

Average corporate

MOODY'S

June:

pounds)— %

2,000

282,434.000
:■*

Month of July; " >
'
'
<J ■'
Adjusted for seasonal variations-Zjil—;133
Without seasonal adjustment————————
}.'•>.
105

Revenue

U. S. Government Bonds

Public

53.000

29.074,000
14,825.000

•*

May

(East St. Louis)

Railroad

19,059,000

10n

104

copper—

refinery at
refinery at

Export

Straits

27,193,000

16,010,000

"v.;v
•
tons)34,760,000

(net

20.000

•32,294,000

39,507,000

MINES)—Month

lignite

*"v

25,000

264,732,000

.i,y
(tons of 2,000 pounds)-:
Refined copper stocks at end of
period (tons
of 2,000 pounds)In

lb.)

Domestic

MOODY'S

.242,583,000
218,976.000
23,554,000

24,630.000
'

and

INSTITUTE—For

"Crude

25,214,000

r_-_

250,881,000
226,231.000

230.696,000

Copper production in U. S. A.—

(E. & M. J. QUOTATIONS):

Lead (New York)

tZinc

150.800
11,898

export

—

....

SERVE

(per gross ton)
steel (per gross ton)

METAL PRICES

Zinc

176,104

gal¬

__L

and

(barrels)

(BUREAU

DEPARTMENT

Pig iron

Lead

139,152

19.5,126

COMPOSITE PRICES:

Finished

Scrap

*104

INSTITUTE:

output (in 000 kwh.)

FAILURES

110

(barrels

domestic

EDISON

145,174

255,935,000

imports

consumption

(barrels)

„

INDEX—FEDERAL RESERVE

SALES

(barrels)—

product

Indicated

Deliveries

and

lignite (tons)
anthracite (tons)—

Pennsylvania
DEPARTMENT

182,119,000

Aug. 15
Aug. 15

(barrels

—_

oil imports

Refined

(U. S. BUREAU OF MINES):

coal

Bituminous coal

$298,259,000

and municipal

OUTPUT

each)

(barrels )J-iL:$___
Natural gasoline output (barrels)
Benzol output (barrels)—_____L

597,402

$411,917 000

construction

Bituminous

domestic production

■Domestic crude -oil output

29,632,000

—Aug. 15

Federal
COAL

Year

i.vjLunti,

INSTITUTE—Month

Pennsylvania anthracite

construction

State

PETROLEUM

lons

ENGINEERING

—

construction

of that date*

May;.

Total

NEWS-RECORD:
U.

are as

JVIUUUI

(BUREAU OF MINES):
Production of primary aluminum in the U. S.
(in short tons)-—Month of May—'—
Stocks of aluminum (short tons) end of
May

Increase all stocks

Revenue

Total

of quotations,

cases

ALUMINUM

ASSOCIATION OF AMERICAN RAILROADS:

CIVIL

1957

either for the

are

Latest

Stocks at refineries, bulk terminals, in
Kerosene

Dates shown in first column
or,

output—dally average (bbls. of

Residual

Thursday, August

production and other figures for th«

cover

that date,

PETROLEUM INSTITUTE:

oil

Crude

week

INSTITUTE:

Indicated

following statistical tabulations

latest week

...

Number 5666

l&o

Volume

The Commercial and Financial Chronicle

...

that,

the

of,

Bankers
figuring
given

winning

frequently
out

their

issue.

But

proved-

syndicate.
close

run

tenders

for

instance

this

of the exceptions.

one

5}s% interest rate.

bid

second

than

away.,

And the

101.6311,

was

eight cents

$1,000

per

And Public Service Electric & Gas

will

take

less
bond

Thursday bankers will
offering 400,000 shares of Walt
Disney Productions as a "second¬
ary" for the account of Atlas Corp.

Several

corporate new issue market

The

definitely more sanguine
atmosphere this week what with
institutional buyers showing more
interest in the fixed term secu¬

took on a

market.
Whether the im¬
proved tone in bonds generally
was at
the expense of the stock
market was not immediately clear.

rity

But it was evident that

portfolio

and these operating trusts and

men

and

bonds

leaning

fends,; were

pension

are

ahead.
be

the

Week's

substantial

offer¬

new

shaping up for the week
On Tuesday bankers will

General

And

ol!
capital
are
heavy calendar for

for

building

new

demands

the

though

the

Natural

following

Gas

plus

stock

preferred

Paso
million

$60

$10 million
up
for bids.

CITY INVESTING COMPANY
,

York

New

Street,

Broad

{;•

Beard., of

JOHN

Vice

dustrial

two

President

proved

years,

able

"hedge"

the

business

$1.50

declared

the close of

26,

1957.

upward

maturity.

With

oil

side.

debentures, offered to yield
and carrying a 51/8% cou¬

negotiated

business

per
on

the common

September 10, 1957 to

August 29.
J.

the

record

1957.
F; FORSYTH,
Treasurer

Copper Cor¬

payable

September

close of business

August

UTILITIES

30, 1957.
PAUL B. JESSUP,

Secretary

COMPANY

cents

PITTSBURGH

CONSOLIDATION

share,

per

COAL

capital stock of

COMPANY

meeting held today, declared a quar¬
terly dividend of 30 cents per share on
at

CARMICHAEL, Secretary

able

Aug. 16, 1957

•

3rd, Secretary

NOTICE

DIVIDEND
The Board of Directors

regular quarterly

Cleveland, Ohio

ers

September 12, 1957, to sharehold¬
of record at the close of business on
on

DIAMOND ALKALI COMPANY

The

Board of Directors today

declared
per

dividend of 36 cents

share on the Common

ber

1, 1957 to

stockholders of

record at the dose

of business

September 3, 1957.
D. W.

John Corcoran,

JACK

Secretary

August 16,

August 19, 1957.

(am it)

Stock

payable Octo¬

of the Company,

1957

BRITISH-AMERICAN
TOBACCO COMPANY LIMITED
NOTICE

IBriggs & StrattonJ

small

DIVIDENDS

ORDINARY

AND

HOLDERS

PREFERENCE

second

dividend

interim

Ordinary Stock for the

September 1957 of

DIVIDEND

Ten
The

Beard

Directors

declared

has

quarterly dividend of thirty-five cents (35c)
per share and an extra dividend of twenty
cents
(20c) per share on the capital stock

New

Wis.

each

Tax

Income

will

30th September, 1957.

dividend

declared

the

1957,

quarterly dividend of

the capital
stock, which will bo payable
Sept. 12, 1957, to stockholders
of record August 26, 1957.

one

dollar per share on

Paul E. Shroads

Senior Vice President

deposit Coupon No. 231
Guaranty Trust Company of

must

| Southern California
Edison

York, 32, Lombard Street, London,

E.C.3., for examination

August 20, 1957

for

pence

of Directors at a

The Board

meeting on August 14,

Holders of Bearer Stock to obtain this

with

Milwaukee,

Kingdom

payable

Secretary-Treasurer.

REGNER,

six

ending 30th

Shillings of Ordinary Stock, free of

United

($3 par value* of the Corporation, payable
September 16. 1957,. to stockholders of record
August 30; 1957.

,_L.

year

Dividend
the

Consecutive

111th

STOCK WARRANTS TO BEARER.
A

4.95%

also
premium.

30c

payable

stockholders

the Common Stock of the Company, pay¬

business on August

CORPORATION

Meantime,, Pacific Telephone

pon,

corpora¬

BRIGCS & STRATTON

Telegraph Co.'s $90 million of 23year

common

DONALD

industry

at the

Aug. 15,1957,

(^(imxcoih- ijou

premium of 2 V-> points

bid

the

this

declared,

record Aug. 26, 1957.

rec¬

issue, offered at. 100, rose quickly
on

stock,

August 30, 1957. Checks will be mailed.

offering a.favorable backdrop this
to sell af a

held today, a cash dis¬
$1.50 per share was

poration

payable Sept. 10,1957, to holders

N-V.,

profitable

1967

August 14,

Directors

reai

issue

the

Vice-President & Secretary

for retirement

60%

Board

Common Stock

dividend of 45

tember 14, 1957, to stockholders

ord

Company have

share on
the Common Stock as the third quarterly
ir.fefim dividend for 1957, payable Sep¬

October 10, 1957; also

provides

fund

YORK, N. Y.

meeting held

the Board of

meeting

The Directors of Diamond Alkali

convertible feature, and the sink¬

ing

the

tribution

1957, to stockholders

October 25,

record

provided a
inflation through its
with,

begin

1957

reaching market this week.
-

ENGINEERIMG

ROSS

23, 1957, to stockholders of record

regular

P. s. DU pont,

d e a Is

"out-of-the-window"

HART,

tion declared the regular quarterly divi¬

NewYork, N.Y.

161 East 42d Street,

Directors of Kennecott

quarterly
dividends
of
$1.12 V2 a share on the Preferred Stock
—$4.50 Series and 87V2^ a share on the
.Preferred Stock—$3.50 Series, both pay¬

in¬

those

one

dend

Pierce, Secretary

COPPER

CORPORATION

Diamond

maturing in 30-.-

nated debentures,

J. EGER, Secretary

the

Secretary

and

Refining
Co.'s
$100
convertible, subordi¬

million

GERARD

Board of Directors has declared this

The

Quickly

Takem

President

Regular Quarterly

encountered
demand in volume that was suf¬
ficient not only to absorb them
but to lift them to premiums.-

Atlantic

the

ALDEN

August 16, 1957

Dividend

issue,

munications

September 13, 1957.

KENNECOTT

KENNEDY.

Wilmington, Del., August 19,

.com¬

stockholders of record at
business August 28, 1957.

NEW

Chemicals

substan¬
an

30,

Abilene, Kans

September 6, 1957.

of business

PONTDENEMOURS&COMPANY

E.I.DU

day

very

payable

September

CORPORATION

flotations.
offerings, one
and the
other

per

the close

August. 21,

market,

week's

This

tial-sized

of business

Company, payable September 30, 19 57.,
stockholders of record at the close

Directors of this company
1957,
declared the regular
quarterly' dividend of $1,375 per share on
■the
outstanding
5Yn%
Series
Cumulative
Preferred
Stock
of
the company,
payable
October
1, .1957,
to stockholders of record
at
the.
close
of
business
on
September
16.
1957.

The.

observers
contend, is that new issues coming
out be priced realistically as has
been the case in the more recent
corporate

August 14, 1957

share and an extra
dividend of 25$ per share were dc
clared on the common stock of the

only requirement to assure

satisfactory

company,

August 8, 195'/

quarterly divi'

cents

outstanding

capital stock

payable October 15, 1957, to

stockholders of record

325

Directors

dend of 25^ per

reaches market.
The

held this day,

Company have declared

1957.
close

39
the

before

Board of Direc'

meeting of the

the

quarterly dividend No. 170 of fifty
cents (50d) per share on the common
stock

quarterly divi¬

common

International

Company

COMMON DIVIDEND No.

tors,

NOTICES

Directors of

The

NOTICES

Packing

DIVIDEND

Board

dend

HARVESTER

Harvester

day

has

Co.

debentures,

ing in market circles is that largescale investors will be standing oy
to look over the new material as
it

JI PT(D0DIRTPaDIRA,™S5
50th Consecutive Dividend

COMPANY

DIVIDEND

feel¬

balance of the year, the

the

Irving

INTERNATIONAL

Building.

The Garlock

though the Federal Reserve

industry

Hanna

preferred stock of
Telephone Co. of Cali¬

prob¬
ably would move quickly to ease
the money situation if inflation¬
ary
pressures subsided,
it prob¬
ably is felt that interest rates are
not likely to run off very much.

with

now

Lundborg & Co., 470 Ramona St.

CLEVELAND, Ohio—Warren E.
Sladky is now
connected
with
Livingston Williams & Co., Inc.,

fornia.

Livingston Williams

and $10 million

ALTO, Calif.—Raymond

Granieri

(Special to The Financial Chronicle)

bidding for $40 million bonds
Co.,

NOTICES

declared

Slate

of Southern California Edison

from the stock
moment.
Even

away

for

market

ings

PALO
C.

DIVIDEND NOTICES

(Special to The Financial Chronicle)

011

Joins

DIVIDEND

With Irving Lundborg

$60 million

The

•

its

bonds.

new

And

•

bids for

The, successful group bid 101.639

for

(827)

five

clear

days

ness

Company

busi¬

(excluding Saturday) before
made.
usual
half-yearly dividend
of

DIVIDENDS

payment is

Cutting It Fine
It

the

nip-and-tuck

really

was

The

2V2%

where little

than $7,000 overall

the

case

was a

bid

the

CYANAMID

separated

runner-up

COMPANY

from

PREFERRED DIVIDEND

FINANCIAL NOTICE
The
ican

Notice

is hereby given that reorganization pro¬
of
Texas
City
Chemicals, Inc. have
completed and holders of the 5!,Vyr Sub¬
Sinking
Fund
Debentures
of
that
company
due
January
1,
1963
must present

ceedings
b:-en

ordinate

them

Corporate Trust Department

due

mately
S3.00

31,

$12.00
cash

5rr Subordinate In¬
reorganized
company
the basis of approxi¬
debentures and approximately
each. $100 of old
debentures
of

196T{

in
for

surrendered.
The
new
debentures

new
the
on

registered form.
When sending old debentures to the Mercantile
National Bank at. Dallas, please instruct them
3s
to tire manner- of
registration and the ad¬
dress
of
the registered owner.
in

are

JAMES
.

.."

National

Provincial

the

business

Texas

City

Dated' at Houston,- Texas
.August 1, 1&6>
'

NOEL. Trustee
Chemicals,

Bank

Limited,

COMMON

DIVIDEND

Directors of Amer¬
ican
Cyanamid Company today
declared a quarterly dividend of
thirty-seven
and one-half cents
(371/2<4)
Per
share on the out¬
standing shares of the Common
Stock, of the Company,
payable
September 27, 1957, to the holders
of such stock of record at the close
The Board of

business

Inc.

September 3, 1957.
Secretary

R.S.KYLE,
New York,

August 20, 1957.

60 cents per share;

DIVIDEND

(excluding Saturday) before payment is

FLORIDA

made.

NOTICE

CUMULATIVE PREFERRED STOCK.

4.32% SERIES

27 cents per share.

August, 1957.

COMPANY

By Order

Miami, Florida

A. D.

McCORMICK,
Secretary.

Westminster

House,

A quarterly

dividend of 32c

share has been declared
Common Stock of the

per

The above dividends are pay¬

the

able

Company,

7, Millbank,

payable September 24, to stock¬

London, S.W. 1.

holders of record

who

of business

may

be entitled by

the

Treaty

States and the United

States

under

Section

Internal

(1) of the Double
the United

between

"INDUSTRIAL EXPANSION

tember

mailed

August 30, 1957.

901

the

Code

will be

from the Compantfs

tember 30.

tax

p.C. HALF,

United
can

of United Kingdom

appropriate to all the above

mentioned dividends.

record Sep¬

Checks

RECORDS"

Kingdom, to

Revenue

particulars of rates

office in Los Angeles, Sep¬

President

CONTINUES SETTING

August 16, 1957

application to Guaranty Trust Company
of New York obtain certificates giving
Income Tax

September 30, 1957, to

stockholders of

r.h. fite

of Article XIII

Taxation

credit

Dividend No. 42

POWER & LIGHT

DATED 21st

virtue

„

Dividend No, 193

THRILLS

THOUSANDS"

Savoy Court, Strand, London, W.C.2., for
examination
five
clear
business
days

Stockholders

exchanged; for
Debentures

March

Vz% Cumulative Preferred Stock,
Series D. payable October 1, 1957,
to
the holders of such stock of

dends:

"Mil IN FIORIDA

Coupon No. 108 must be deposited with

following quarterly divi¬

ORIGINAL PREFERRED STOCK

September 3, 1957.

Dallas, Texas
come

Amer¬
today

the

30th September next will
payable on the 30th September,

1957.

quarterly dividend of
eighty-seven and one-half cents
(87V2tf» per share on the outstand¬
ing
shares
of
the
Company s
declared

record

Mercantile National Bank at Dallas
to

of Directors of
Cyanamid
Company

Board

also

the

authorized the payment

ending

year

cials must have rubbed their eyes.
For here

United

AMERICAN

opened, and company offi¬

were

FA1VA1MII X>

Pacific Tele¬
phone's $90 million offering. Two
syndicates toed the line as bids
bidding fof

The Board of Directors has

the 5% Preference Stock (less
Kingdom Income Tax) for the

Treasurer

Commercial and

The
44

Financial Chronicle

Thursday, August

...

22. 1957

(828)

BUSINESS BUZZ

Business

on...

s
BeMnd-the-Scene Interpretations
Vl

from the Nation's

WASHINGTON,

Capital

powers of the Se¬
curities and Exchange Com mis-,

regulatory

traded exclusively in the OX£P-

Congress.

...

•

any

of $10,000,000
or
more, which :4s "engaged • in
interstate commerce., or whose
securities > are traded. through
the mails, or on any national

time'.re¬
mained for them to bring this
so-called Fulbright bill up for
floor consideration. The bill to
amend the Securities Exchange
Act of 1934 would subject hun¬
dreds
of
corporations to the
same
financial and proxy re¬

insufficient

embrace

would

gress

would

corporations

not

serve

by
Chairman J. William Fulbright
and committee colleagues with

the

against

voting

sent

tive trick

series of grounds. Some

declare

they

dened

already bur¬

heavy reporting

also

that have
to

officials have
advised members of Con¬
that the whole scheme

expensive-duplication.

The

■

.pending
bill. Like practically alb Fed¬
eral agencies and bureaus, the
SEC would like to have greater
and greater powers. It would
build uj) a bigger; bureaucracy
to have hundreds of additional
corporations brought within its
jurisdiction. • -

sive

check showed that some of

expressed

opinion that if they are re¬

quired to report sales and other
data in detail it would divulge
facts

that

would be of tremen¬
their competitors.

dous benefit to

failed

Furthermore, the hearings

to,

that

prove

benefits

would

commensurate
to

come

the

stockholders to warrant the ex¬

burden that would be
placed on the corporations.
pensive

over

half of

Washington has

locally.

The

new

proposed

companies

are

regional securities ex¬

brought

out

Committee

that

are

table,

three

years,

The

the

ties

the

SEC

16(B)

Not

the

Applicable

amended

f \.\

•

ington? ;
"Most
„

the

bill

.
.

ants,

270

York

16,

the-counter

security holders by';
discouraging the maintenance of
markets by sponsoring dealers.
urged the SEC

ing the
eral
to

same

law

serve,

where

CHflONictE*

PORTLAND; Greg.

—

this Fed-

ostensibly

law

in
no

Co.. Inc.- 901

serv¬

*r-

v '

„

srtates

statute;

applies.'*

the

[This column is intended to re¬
flect the "behind the scene'' inter¬
pretation from the nation

650

corporations

only

previous bills. Funston
every one of the

companies

companies,
to the

j Carl Marks & Co Inc. i
FOREIGN SECURITIES
SPECIALISTS

that

many

larger in
the listed

were

presently

20 BROAD STREET

TEL: HANOVER 2-0050

He tes¬

the owners—the

companies, which were not large

C.—Robert L
Bache &

Johnston Building.

MARKETS

TRADING

Mills

Com.

Campbell Co.
Fashion Park

Mill8
Envelope
Engineering

Indian Head

•

NEW YORK 5, N. Y,

Riverside

Cement

Flagg Utica

lerner i
Investment

subjected

SEC regulations.

Staff

Chronica<

Morgan
National Co.

en¬

whereas more
been af¬

iuTur FtNAxem

United States

about

1,200 would have

testified

size

measure,

Washing
*

„

CHARLOTTE,, N.

A. S.

Committee contends that

affect

Gibbon is'now. with

•

would

Botany

mm-

amended

Capital

and may or
may not coincide with
the "Chronicle's" own views.]

.'750 stockholders or more.

the

Bache Adds to
f Special

The

of Walston

Southwest

designed

those

•\

Telephone
HUbbard 2-1990

co.

Securities

10 Post Office Square,

IS i

Street,

ton
:*

James

•James.- M.

-and

joined the staff

have

already

purpose

and

there

common

are

Co.

; r (Special tbcTHE FinANCitt

Lynch

the " States

Two With Walston

this further

;•

Ave., Ne
(paper) $2.20

Madison
N.

(cloth) $3.

declared:

statutes which

provision would

work to the detriment of' over-

Committee

Industrial

Public

Certified

centralization of power in Wash¬

corporation,or

The

when he

is to be served by

holders, by civil

of whether this

States

Institu
Account

Mahon, Jr.—American

Purpose"

"What possible useful purpose

...

the 1934 statute

for

Bot

Working With the Revenue Cod
1957 — Edited by James J

it necessary.

Southern

ure

inapplicable
to the corporations subject to
the bill. This subsection permits

Tech

Firms Promote

tenberg—National Planning As
sociation, 1606 New Hampshir
Ave., N. W., Washington 9, D. C
(paper) $1.75.

Council, summed up the oppo¬
sition to the far-reaching meas¬

the bill, to make section 16(b)
of

•

in Latin
United State:

How

nological Progress—Simon

Tyre Taylor, general counsel

SEC,

—

The Senate Committee, at the

request

Y. (paper) $5.

Cooperation

Business

in whole or
over-the-counter se¬
for
one
year,
if
it

"No Useful

for

Section

Insti¬

University

York

New

America:.

in part of

over-the-counter securi¬

under

Education

Industry—Pro¬

(paper) 20 cents.

trading privileges

deemed

and

Edison? Foundation
—

Technical

empowered to suspend unlisted

curities

(paper).

Science

Thompson—Committee for Eco¬
nomic Development, 444 Madi¬
son
Ave., New York 22, N. Y.

author¬

would

Commission

York 3, N.

reformatory purposes.

"Current Business

Taxation For Growth—J. Cameron

security of an issuer or¬
and* operated
exclu¬
sively for religious, educational,
benevolent,
fratwrnak c ft a r ra¬

after taxes for

Harley L.
George-

Press, Washington Square, New

cooperative

ganized

and
at least 1,500 stock¬

to any

Ex¬

also brought out
that it would cost the taxpayers
an estimated $500,000 a year ad¬
ditional to bring the provisions

that'" the : unlisted

amended the

Society of Business

—

Youth

tute

ity having supervision over such
institutions. Nor would it apply

least

have

association,

ined by State or Federal

company

loan

homestead association,
which is supervised and exam¬

The hearings

corporation of $10,00.6,000 or more .instead of as¬
sets of $2,000,000 or more and

apply, io

Edwin

No.' 27 of

Alva

bank, building and

issued

months

ceedings of the Seventh Thomas

ban k,

in ; the

Stock

York

New

should have

allegedly apprehen¬
v

Blackwell Smith,

—.

and

For

effective

the

provisions
of the bill
would not apply to any security

holders.

tified that there were 469 listed

the

hands.

$50;

E.,, Merriam,

Strengthening

The

$7,000,000
in assets, and have earnings of

finan¬

legislation would levy
cial burden

back

proposed bill.

companies

the

small

was

should

public appraised them. His tes¬
timony was given ' before the

1,200

its take and it is sent

change

companies which would be af¬
fected by the proposal are not
small businesses as far as the

usually is not worth
had

listed

similar bill in 1935. He

maintained

fected by

than

date of the

these

of
on

hearings; that the minimum re¬
quirements in general for listing

bill. He likewise testified in be¬

begun to realize that when they
a dollar to Washington, it
more

upon

than

after

"problem"

the

study

proposed,

one of its stocksuit, to recap-,
corporation
any
£nnston's ' Views,
r
\ } \ "short swing profits" realized
G. Keith; Funston. Presiden t
by its officers, directors and
of
the New
York Stock Ex¬
principal stockholders. The SEC
change, testified in behalf of the
suggested time to make a study

various things, at long last ha ve

cents

277

Securities and

the stockholders in the

Budget.

York' 3,

undertake

$2,090,000

changes.

business firms
growings

private

f958,

1, 1950, $45 per year;

Advisory
Professions, Inc., 6
Washington Square, North, New

that

from

him

much better
position!"

the

meet

other

ture

acted,

71)

;

cor¬

corporations.*'V

Many Americans who used to
advocate Federal handouts for

send

been

"little

the

look

New York
Stock
Exchange,
154 on the
American
Exchange, and the

legisla¬

Oct.

1958

originally

listed

are

;

members of Congress

some

have

said

•f

chance of

remain in

and

Securities and Exchange

the corporations have

October,
to

enough to

Exchange Act of 1934, the Se¬
curities and
Exchange people

Commission is for the

Ever since the

is
r':

•

; »i.)#

just

^minimum

and get a foot
Eventually, the

deter many small

re¬

Some state

gress

Ave., Chicago 30,
:Ill.-t-12; mortths subscription to

Luiz

"Sales

opinion that the bill would

the

quirements as a result of various
kinds
of
government regula¬
tions.

atleast $1,000,000

thousands

Clearing House, Inc., 4025

Studies"

porations in the United States.
Some experts in testimony be¬
fore the Committee
expressed

opposing the meas¬

ure on a

merce

to try

door.

(directory;

will be opened. There are

hundreds

Meantime, a number of com¬

are

the

door

three1 volumes

—In

Robert

Committee
the assets

However, it is ail old

pro¬

Expensive Duplication

are

the

rules; related
-laws and regulations) — Com-

t-+"

•;

Obviously many

raising

Exchange Guide

constitutionJ and

£o§f%

figure to $10,000;000.

dis¬

posal through proxy.

panies

result

amend meril

dissenting votes, who were

two

^ 'r

corporations would escape the
red-tape and financial burdens

bill was reported out

Sales

Ave., -New7.rYork Tl, N. Y..

/.The Fulbright bill (S 1168),
as
originally proposed, applied
to companies with assets of only
$2,000,000 or
more
and 750
stockholders
or
$1,000,000
in
debt securities.

Successful

West Peterson

already weary taxpayers
of the nation." '

present and voting, phis one

to the

regular filing by officers, direc¬
tors ,and Targe stockholders of
their holdings of the corpora¬

Management — Merrill DeVoe-Prentice-Hall, Inc., 70 Fifth

New-- York; Stock

n0□□

•

added, in a statement
opposition to the- measure:
added
prestige that ac¬
crues
to government
bureauc¬
racy. with an increase i^i budget
and
regulatory; authority,
i:s j
hardly sufficient justification to,!
warrant the additional burden,

solicitation of proxies, and

"How"-

The
.

i
•

The

,-,20,. N; .Y;;.(clpth); $3.93.

"The

report to the SEC, compli¬
with SEC rules regarding

Schii

10 years or so.

Ave

attorney

ance

tion's stock.

1 ;

(

Proposed requirements* fob
these
corporations would
in¬
clude submission of periodic fi¬
nancial data and various kinds

the

On the contrary, it would
be "helpful" only to the Securi¬
ties and Exchange Commission
and the stock exchanges. The

•

■

terest.

1,000 stockholders

each of the past

■

'.V

' j

».

Madison

Fifth Ave.,: New! York

63t)

ter,
:

that : the bill
the public in¬

maintains

17, N. Y. (cloth)

V. R. E., L., Hall, general counsel.
of the National Coal Associa¬
tion,.

New York

G;\M. Lpeb-—Simon and

to push through Con¬
similar measure during

*"•

SEC * has
success,

facility!;

Public Interest"

"Against

$10,000,000 in assets. The
attempted,
without

and

assets

securities exchange

presently ap¬
plicable, io .companies listed on
a National Securities Exchange.
with at least

FSALES

MOMT

porting provisions

■

Fulbright bill would ap-L

total

ing

383

Battle For Investment SurvivalX-

persou,

ply to each issuer of stocks hav-,

,,'

headed tor
the final days of the ..session,
members of the Senate commit-'
said

company

promptly report;
change in the holdings.

The

As the law-makers

tee

equity security registered, as;

Henry Holt and

Company,

with

director

holdings" and

it wtUi
not-be considered by either the
Seriate or House at this'Session
the-Counter Market, but

Own Story—Bernard

Baruch

:' owihgi
more
than'Ih^f of a security,
jhUst;,fife. mi .statement^ ..of; ;h.tsi

include -authority

Baruch: My

•WefL "as. •every.

over;''
companies Avhose securities arc!
sion

have

all expenses.

pay

By terms of the Committeerecommended bill every officer

the

broaden

would

that

bill

would

stockholders—who

—

Banking and Currency
Committee recently approved a
Senate

Bostonj,"^
RS 69

Full text of Commercial and Financial Chronicle : August 22, 1957, Vol. 186, No. 5666

FRASER