Full text of Commercial and Financial Chronicle : August 29, 1957, Vol. 186, No. 5668

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

*

"" (

"

-

ESTABLISHED 1S39
■

j

/;
an 6P

s

Mil

-

Iter. TJ. B. Pat. Office

New York 7,

Number 5668

Volume 186

EDITORIAL

We See It

And Economic

"Clearly the most critical economic problem

put in the terms
the

of the man

on

sound

development "as far

private investment-flow; and stresses importance of
people and their dedication

a

program

victions,
events

Conference

the

there was

the nature of the

country is
there

are

about the
sures

on

in this hemi¬

be defined

♦An

Economic

the

26

address

Buenos

SECURITIES NOW IN

on

page

solid

that

have.

A

however,
has in it

tube,

or

device

state

The fact that many stocks
selling for 30 to 40 to 50 times

are

we

Continued

proximate cause of the various pres¬
is subjected today,

definition,

already.

all around the Americas

earnings is proof enough of that.

Considering all aspects of the in¬

electronics represented in
$11% billion worth of
business—of which about 55% was
dustry,

well being. Above all we seek
these goals while preserving the freedom of our peo¬
ples.
It was most encouraging to me that in this
eloquent address inaugurating this Conference, President

to which the economy

that

those

anything

be

vacuum

a

provement of standards of

faced. There may be and doubtless
understandable differences of opinion

on page

better,

a

its counterpart,
such
as
a
transistor.
In discussing the elec¬
tronics industry I don't intend this
to
be a sales talk for electronics.
There has been too much of that

a

want
them
to
ptirsue
more
healthful lives, we want their lives filled with hope,
enriched with progress* and inspired toward the im¬
live

to

the Board of

Continued

would

the

simply: We want our people

usable

more

I was deeply im¬

These objectives are clear and can

sphere.

give

of

most

plus

logical succession from the

Quitandinha in 1954.

inspiring objectives which we seek

and

Federal Reserve System sets

think

somewhat flip definition of elec¬
all fields of electrical
engineering which have not already
•
-,
been claimed
by other disciples
If I were to

tronics I would say that it covers

enthusiasm with which my prede¬
Humphrey, wieved the1 Quitandinha
He was convinced at that meeting that
unanimity among the delegates as to the great

meeting.

the whole accurately,
financial situation by which this

we

of to insure maximum investment return.

from day-to-day

specific decisions, and
which total investment and man¬

Secretary

cessor,

System were a party to that process, it
would betray its trust." v
*

at

by

pressed

Reserve

of

stems

progress

This Conference follows in

between investment demands and
savings should be filled by creating ad¬

aptly, and

out

and cumulative effect of

shows the extent to

gap

Governors

.

agerial wealth is not indicated in balance of payments.

ditional bank money, the spiral of inflation which
[tends to become cumulative and self-perpetuating
[would be given further impetus. If the Federal

forth

points

spending is only expected to increase

Turning to non-defense sales, he describes
encouraging prospectsi for computers, automation and
control, and medical electronics. Warns that the tech¬
nological challenge in electronics will be "new" technol¬
ogy which manufacturers and buyers must keep abreast

by 10%.

ment of their

overriding problem that faces the
System today, for a spiral of

In these words the Chairman of

try's future, the Californian executive shows that this
"research and development oriented industry" expects
its defense sales to increase 50% by 1961 even though
total U. S. defense

of work and savings, and orderly manageown government and economic affairs" in
order to achieve a still higher rate of economic develop¬
ment. The new U. S. Treasury head expresses his con¬

to

mounting prices and wages seeks more and more
financing. It creates demands for funds in excess
of savings, and since these demands can not be
satisfied in full, the result is mounting interest
rates and a condition, of so-called tight money.
available

re¬

"individual efforts of each

Federal Reserve

the

supply

existing capital

:

data appraising the electronics indus¬

In citing

ment.

ahead." Ad¬

recommends removal of tax and other obstacles

sources;
to

as we can see

of

utilization

fuller

vises

problem has persisted

trends for defense

existing public credit institutions can meet needs of

ters

through the years since World War II. It consists
of inflationary price increases and the economic
imbalances that have resulted.

If

Alto, Calif.

provided by Mr. Hewlett in the spending »
and non-defense electronics equip- :

An insight is

Treasurer Anderson tells Latin-American finance minis¬

bes|t

"This is the

''

/

■

"This

terial resources.* Today's

HEWLETT*

Secretary of the Treasury

the street, it is

rising cost of living. ' j.?

that

By WILLIAM R.

Hewlett-Packard Company, Palo

^problem is far different from the one
us during the depressed 1930's, and
left an indelible impression on our thinking. The
problem-Jhen was one of drastic deflation with'
widespread unemployment, both of men and ma¬
•

Copy

Technology in Electronics

Questions

By HONORABLE ROBERT B. ANDERSON*

facing this country is that of inflation, or

now

a

Investment Challenge oi

Latin-American Financial

As
i

Price 40 Cents

N. Y., Thursday, August 29, 1957

1956

Wm. R. Hewlett

about

by manufacturing, and

represented

45% by the nondistribution

manufacturing fields such as broadcasting,

20

Continued

by Mr. Anderson before the 1st Plenary Session of
Conference of the Organization of American States,

♦An

address by

on

Mr. Hewlett before the Stamford

page

42

Business Con¬

ference, Stamford University.

Aires, Argentina, Aug. 19, 1957.

REGISTRATION—-Un derwriters, dealers and investors in corporate
complete picture of issues now registered with the SEC and poten¬
"Securities in Registration" Section, starting on page 34.

securities are afforded a

State, Municipal

tial undertakings in our

DEALERS

and

in
y

■,,

U. S. Government,
State and

STATE

Municipal

telephone:

BONDS

HAnover 2-3700

FOREIGN

qi
BOND

»!

,

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DEPARTMENT

N.V.

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Burnham and
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YORK ANO

AMERICAN STOCK

EXCHANGES

N.Y. • 014-1400
TELETYRE MY l-20«3

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i'

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INVESTMENT
i

t. l.W ATSON

&CO.

ESTABLISHED 1832

SECURITIES

Members

£<Hlthu>€4t

New York

Stock Exchange

American

the

Stock Exchange

25 BROAD

STREET

NEW YORK 4,

N. Y.

Teletype: NY 1-708

Bond Dept.

Active

Dealers,

Markets

Banks

Orders

<£otd/ut>e4t company
DAllAt




BRIDGEPORT

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York

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Exchange

from

offices

CANADIAN
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coast to coast

Brokers
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for California's

BONDS & STOCKS
Expanding

Executed On All
Regular Rates

Economy
MUNICIPAL BOND

1-2270

Dooutook Securities

DEPARTMENT

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Goodbody 8t
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Teletype NV
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Canadian Exchanges At

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first

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New

BROADWAY, NEW YORK 5

Maintained

and

CANADIAN
SECURITIES
Commission

of

4ewi>«rb

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To

fi i

Harris, Upham &

OF NEW YORK

Net
A

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DEPARTMENT

BOND

the
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Company

STREET, NEW YORK 5,

tABLC: COSURNHAM

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AVAILABLE

REQUEST

Available on Request

MEMBERS NEW

30 BROAD ST.,

ARE NOW

LETTER

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THE FIRST NATIONAL CITY BANK

BANK

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Bonds and Notes
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ON

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Public Housing Agency

MUNICIPAL
COPIES OF OUR

CHEMICAL

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Securities

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I

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Co.

jlOCK EXCHANGE

1 NORTH LA SALLE

CHICAGO

40

Exchange Place, New York

ST
Teletype NY 1-702-3

Bank nf America
5,N.Y.

WHitehall 4-8161

NATIONAL

JA"Yngs ASSOCIATION

300 Montgomery

St.. San Francisco,

Calif.

'

,' t! i

2

The Commercial and Financial Chronicle

(894)

The

Banks, Brokers, Dealers only

For

Try "HANSEATIC"

participate and give their

BECAUSE:
1.

provides

system

with

you

more

of maximum service and

Ero

depend¬

Manufacturing Company

The

continue

ing

Corporation
American

tions
'

Exchange

the

5

t.e

r a

0

about

Teletype NY 1-40

year

10%

BOSTON

•

CHICAGO

for

PHILADELPHIA

•

SAN

Private

Wires

f

tion

per

of

Specialists in

RIGHTS

SCRIP

&

used

American
120

car

owners.

fiscal

good sales

a

with

1956

143 for fiscal
At the

TEL. REctor 2-7815

sales

net

day.

Air Control Products, Inc.

of

1955.

was

income

fiscal

for

for

fiscal

1955.

the

Colony Life Insurance Co.

its

changed

company

Jan. 31 instead! of Aug. 31 as pre¬

viously. The sales rise is signifi¬
cant, however, since it is part of
a
steady 10% rise per year since

Lynchburg, Va.
Tele. LY 62

LD

of

is
.

&

and

are

Mills

debt

and

total

4*6

has-

current

for

net

assets

working

ESTABLISHED

37 Wall St., N. Y.

was

capital

On

June

was

19,

$10.88

consecutive

cent

dividend,

the

10th

tive year it has done
timers

Executed

on

./

A

Magnolia Park

S.

Harbor

Guardian Chemical

each

Members

1

Salt

Lake

VcO.

Ero

Exchange)

s»lt Lake




will

fit

a

City

its

-which, has
the

great

many

First,
during the il

year s-^hat
have bve en

company

have

I

seen

things
happen to that

many

and

company
most

of

have

been

these

seat

Lewis

River

area

another

are

valuable asset of the company.
The company is paying a nomi¬
nal dividend of 40 cents
per share
and
the
current market on the
stock is IIV2 at 12 per
is very close to the

share.which

working capi¬

tal

position

of

the

and

company

any mild upturn in the economy.;
which would carry through to the

the

earnings

unit

in

and

the

of

this

soundly

forest

working

/

The

company

Hunts Foods

has

products

in¬

controlled

is

and

of

1955

of

sizes, Ero has

covers

part

business.

important
This

has enabled the company to
its custom seat cover

eliminate

operations at outlying plants and

share.

per

This

they

of

working

is
largely
invested
in
short-term government bonds and

at

convertible

find

vide

capital

a

very

industrial

substantial

vested in the
set

in

namely:
Douglas

the

is

logs

made

the

from

feasible

or

advisable

the

warehouse

and
as

it's

smart

to

your

place

advertisement in

country,

cisco

namely:

San

Fran¬

and

Los
Angeles,
Calif.*
Houston, Tex.; Atlanta,
Chicago, 111.; Cincinnati

It is very easy to
figure out
what is behind each share of
stock

desirable tracts of timber in the
Northwest and it is
conservatively
estimated that this timber after

considering the roughly one mil¬
shares
outstanding; and with
no
bonds, preferred stock or bank

lion

allowing for the cutting contract
price to the Northern Pacific Rail¬

loans the common stock is
in first
for any

has a value well in excess of
$20 per, share at today's stumpage
way,

position

ment which
;

CHRONICLE

25 Park Place, New

York T

sales

Ga.;
Ohio; Tampa and Jacksonville,
Fla., and Indianapolis, Ind.

appeal as an
inflation hedge becahse of the fact
that Harbor owns one of the most

THE COMMERCIAL AND

FINANCIAL

other

Dallas and

an

.

So

customers.:

new

man

organization, in the key spots of

Fir, and about 30% of
working capital is in inven¬
tory.

values.

it

the. 11

on

facilities of Harbor, such

t.h°

xhe stock offers

securing

future date to unite with
other company so as to pro¬
broad
diversification
and

utilize

in¬

highly desirable as¬
plywood
industry,

peeler

the most useful tools in

some

some

issues; and

amount

of

by

will

$10

one

Industries, Inc.

board of directors and it could be
that
that
substantial
ownership

number

is

dustry.

capital of the

the

Advertising

well

financed

outstanding which is 1,024,216, it currently figures in excess

number

seat

a

plywood industry. The access
owned
by Harbor in the

affect

year

company

been

product
depressant in

roads

integrated

Each

account

?rr

interior

shares

cover

in

an

represent
of the firm's

three-eighths

building industry could favorably

on

the favorable

into

Teletype: RH 83 & 84

Telephone 3-9137

products

have six members

more

which

move

I
a

director of the

the

Bell System

compete in the highly vulnerable

the American Stock Ex¬
a

its

Super-Harbord and

listed

change, because of

premium

to

RICHMOND, VIRGINIA

confined

Harborite; and therefore, does not

security that I like best is
Harbor Plywood Corp. which is
on

has

ing

also, during 1956, began to
air
freight delivery for

custom-made

company

as

CRAIGIE 8 CO.
"

\

4

com¬

in inventory by about $1,000,000.
utilize

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

tlroM ortvMe uiir*
to

size

•

extra

or

introduced

'

in that they own in excess of
30%
of the outstanding stock and

been able to lower its investment

request

Stock

first

of made-to-measure

,

CAPPER

cents

,

■F. W.-

popu¬

-

grown steadily so that it is now
in excess of $10 million, and tak¬

12%

automobiles, precluding
the necessity for a great number

*Narda Microwave
on

25

E

production

The

Harry S. Grande

different

Helicopters

The

such

homes going up,

new

country's growing

success.

'

GRANDE

Plywood Corporation

of

by Ero has enabled the company
to reduce its variety of
pattern
sizes by as much as 60%. Because

Holiday Oil & Gas

future

President, Grande & Co., Inc.
Seattle, Wash.

of

consecu¬

The

yearly

stretchable

new

material

Bymart-Tintair

''Prospectus

of

so.

paid

more

the

and

I

130

during this period.
Two developments
during 1956
are
of particular significance.

V

Doman

also

dividends

Exchange

*

has

pany

Salt Lake Stock

these

1

share.

quarterly

CAROLINA
MUNICIPAL BONDS

lation, all will contribute to Ero's

share and

a

NORTH and SOUTH
/

number

v

1957, Ero paid its

41st

Tel. HAnover 2-4850

a

for

\-.v-v

Specialists in

VIRGINIA—WEST VIRGINIA

widening our sales
these
products," he

The combination of the growing
of
automobiles
on
the

on

side.

book value

1930

of

business.

working capi¬

equal to $8.05

outlets
said,

replacement

cover

preferred

no

On that date net

&veeweaXompcm^

his

Since 1932

are

road,

seat

$3,084,756.
tal

60%

also

"We expect to enjoy the results of
the continuing home construction

there

now

Broadway, N. Y. 6 COrtlandt 7-5680

ture for the company's secondary
line
of products
for the home.

for

including
cash
and
of $433,708 and total
liabilities of only $805,-

current

Reid

cars

111

Brokers & Investment Bankers

industry.
sees a bright fu¬

cover

boom and

Tokyo, Japan

.

^

lots of

chains, have helped
of the top three in

of

Yamaichi Securities Co., Ltd.

sold from

age

$3,890,202
equivalent

Chesapeake Industries

bases

that

seat

Leopold

Affiliate

the three-to-nine-year-old
bracket, the most favorable

American

Ero

the

one

write

of New York, Inc.

y

caravan

age

outstanding

the

on

keep Ero

information

or

Yamaichi
Securities Company

%

/

covers are

current

Call

sales i, campaigns,

-

Ero's Seat Cover

as

in which seat

in

that

outstanding.
The Jan. 31, 1957 balance sheet

Minerals

Rosemarie

65

road

stock

shows

Botany

listed

1

Exchange.-

funded,

Oil

some

the

has 358,500 shares

stock

common

Stock

Industries

He

fact

million

are

For

de¬

covers

trailers located in parking

sales

cover

factors.

which

Trading Markets

Alaska

the

1953.

33

The company

Advance

1957.

on

HARRY

year in 1956 to end henceforth on

Scott, Horner & Co.

in

Ero

seat

sales-picture,;.;

such

bulk

com¬

fiscal

of

types

Imaginative

future, Howard F.
President, is predicting

optimism

The comparative figures are for
two different fiscal years, since

Gas Company

the

the

10% increase in seat

branch offica«

our

STOCKS

as

of clear plastic which pro¬
tect, but dov not/ hide, the up holstery V
also .are bolstering

company's sales, but these
products now repre¬
25% of the company's total

Leopold,
a

of his car's interior

major retail

to

to

JAPANESE

the

of

those

Ero

As

conscious

as

veloped in recent years ... chiefly
slip-on terry cloth covers and

share

Per

earnings in 1955 were ,$.90
pared with $.82 for 1956.

Alabama-Tennessee Natural

1956

$293,023 compared with $313,-

621

Bank of Virginia

'New

sales.

for

same

Net

other

motorist

.

the

NY 1-1557

La.-Birmingham, Ala,

Mobile, Ala.
Direct wires

he is of his living room's.

Ero

up

Exchange

Association

Manufacturers

appearance

the

of

year

time, the company
showed a slight drop in net profits
as
a
result
of
the
price-cost
squeeze being felt by a large pro¬
portion of American industry to¬

Trading Markets

the

machine,

make

New Orleans,

this
year
in • national»
advertising and publicity to make

designing of modern

covers

HAnover 2-0700

being

is

$150,000

greater public) interest in physical

sent

impetus

of which
Ero vis
a
member. The industry is spending

product, v a
is showing an
increase in sales through intensi¬
fied promotional activities and a

Seat

York Stock

American Stock
Exchana*

(ASCMA)

fitness.

$9,956,216 compared with $9,135,-

Exchange

BROADWAY, NEW YORK 5

First

new

the increas¬
by both

covers

industry, enjoyed

Exchange

Stock

seat

Manufacturing Co., Chicago,
industry is a case
in point. The company, which was
established in
1911, and which
has grown with the automobile
in

in

another

rowing

Ero

ffcpONNELL &fO.
York Stock

and

Cover

prog¬

the

-Still,

Sam Eisenatadt

leader in the

a

Since 1917

New

of

use

excellent

Additional

given to seat covers generally by
an
intensive
advertising-promo¬
tional program undertaken for the
first time by the Automobile Seat

homes.

more

tions—now up
to 65,000,000—and on

ing

made

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

result. of national safety
sales of seat belts arc

a

venience

registra¬

car

also

Bought—Sold—Quoted

Corp.—Harry S.

Members New

up-grade,
and
hassock
sales are rising in proportion to
'he emphasis on comfort and con¬

expecta¬

on

tions

Chicago,

(Page 2)

Mem.bers

in

on

based

McDowell,

Louisiana Securities

the

assure

programs,

past

is

to

G.

Straus,

Grande, President, Grande &
Co., Inc., Seattle, Wash. (Page
2)

prompt delivery from the
central plant in Chicago as was
formerly made from local plants.
The savings
in production costs
more than makes
up for the in¬
creased freight charges.. -

As

This projec¬

Principal Cities

to

possible

S.

—

Partner,

&

Harbor Plywood

depart¬

niture, automotive luggage car¬
riers, cushions and insect screens.

two years.

FRANCISCO

the

entire

111.

development of its other
product
lines
which
include
hassocks, safety belts, metal fur¬

it has

as

it

Ero

the gain could
continue
at

120 Broadway, New York

the

Co.

Manufacturing

Blosser

same

ress

that

are

centralize

made

as

Indica¬

"

WOrth 4-2300

auto¬

dur-

1957

well.

Member

Stock

the

industry, which

is expected to

New York Hanseatic
1920

,

grosses

year,

Established

cover

Ero

nor

sell the securities discussed.)

to

Alabama &

Their Selections

ment
in
its
principal
Chicago
facility, resulting in considerable
savings in labor and other oper¬
ating expenses. Air freight has

about $300,000,000 a
continued through 1956 and

now

Associate

of

resurgence

mobile seat

.

Participants and

;

Eisenstadt,

be,

to

Thursday, August
29, 1957

Week's

This
Forum

particular security.

a

intended

not

are

to

Chicago, 111.

able executions.

•

offer

Partner, Statistical Department
Straus, Blosser & McDowell/

you

assures

as an

S. G. EISENSTADT

long experience and large

trading department

they to be regarded,

•re

wire

markets, faster.
2. Our

for favoring

reasons

(The articles contained in this fornm

nationwide private

Our

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

...

slight improve¬
might redound to the

benefit of the
company.

N. Q. B.
OVER-THE-COUNTER

„

INDUSTRIAL STOCK INDEX
18-Year Performance
35 Industrial
FOLDER

ON

of

Stocks

REQUEST

National Quotation Bureau
Incorporated

46 Front Street

y

*

"

Number 5668

Volume 186

World

...

The Commercial and Financial Chronicle

INDEX

Inflationary Conditions

LicHTEnsTiin

B. S.

By SEYMOUR E. HARRIS*

Articles and News

Chairman, Department of Economics, Harvard University
Latin-American

Prominent economist reviews

Financial

and

Economic

Page

inflation is the price paid for rising output;

—Hon. Robert B, Anderson

t

and prescribes
therapy to combat inflation. Dr. Harris believes our failure to

*

inflation

treat

due to fear of upsetting

is

the

Hewlett

R.

NEW DOUGH IN TOWN
Brought in from far

Cover

__„

Conditions—Seymour E. Harris_____^

.

failure to recognize

inflationary pressures. Though infla¬
savings, finds that in non-galloping
inflationary countries insurance growth exceeds price inflation,
and that private insurance in force has declined vis-a-vis
G.N.P. and, so too, private insurance per family in relation to
growth of disposable income, r Believes price stability is com¬
patible with full employment and notes public savings affect

3

5

•

Uniform Bank Reserve

vs.

Obsolete Securities Dept.

(1) Inflation of Recent Years
Inflation

is

the

economic

much to do with inflation.

.1

6

Morality of Money Management—Howard E. Isham____

9

Reversing "Big Government" Trend—Philip M. Talbott

v

10

RIMROCK

12

REEVES SOUNDCRAFT

,ease of the last 15

years.
In the
planning for the postwar, the assumption
was
that the
threat

Robert

A.

Bicks

____:

would

be

flation,
Hence

the

m»ny,

WYOMING URANIUM
—W. Kenneth Davis

defeated

the

GENERAL MINERALS
Bank

mon-

Are We

able record after the war reflects
e
kasjg restrictive
monetary and fiscal
on
the
rePolicies and anti-wage inflation
sponsibilities P°licies which were all the more
of
creditor successful because competitors innations
to
bulged in inflationary policies.

}

IffF1

provide

mmMH

;

q u a

t

e x-

change

;

Dr. S. E. Harris

'ports

through

and credits.

im-

in'a

But

;where inflation is the

world

danger, the

emphasis should not, for example,
be
to

How much inflation? Here are the trends from high to low for a
number of countries.
I am not

'^un^arY»

Jor example,
n10? 1S SlrPi?»0S^ 4? haye ac! an
jinflation of 10—17
times, surely a
record, which makes the
classic Assignat experience with
a rise of the price of gold of 190
the

even

German

postwar experience with the dol,lar rising 1,000 billion times and
United

as

like

billion times

779

prices

much

as

States

prices

relatively restrained
movement compared to the record
seems

a

established by Hungary.
Rise of Prices *
r

*An

tnerce,

ways,

increased

for example,
fringe benecountries

wages

in

13%

man-hour output—Italy was a no-

13?
^ rise in

Prof.

1937

Finance

to

before

Conference,
and

European

1956

than

more

rose

tab,e exception. In 1956, the cost
of living increased in all 17 coun-

summary

Harris

Insurance
of

York

Savings

Endorse

Bankers

Com-

University of Pennsylvania.

Maybe,

Day!

Some

29

with

•

rise

largest

the

Continued

on

page

r
"

lSee

especially
Controls

Inflation

*

in

nnrrCDDCn
specialized in I II L T L H II L II

Is

Exaggerated

Sylvanite Gotdt

See It

(Editorial)

' ■

■

.t

■,

v..

.

Pacific Uranium f
.Cover

—a
'

Reeves Soundcraft

:-f

■

Stocks

20

Business Man's Bookshelf..

44

and

Insurance

Electronic Research

,

Assoc.
Coming Events in the Investment Field

r

Recommendations

Investment

Dealer-Broker

8

t Report
*

8

Einzig: "Should Britain Sit Back and Await American Action?"

13

Request

on

Prospectus on

Request

14

From Washington Ahead of the

.

News—Carlisle Bargeron

Indications of Current Business Activity

Funds

Mutual

_____

Singer, Bean
&

41

_

NSTA- Notes

—

News About Banks and Bankers

—

Mackie,

HA 2-0270

32

___

Teletype NY 1-1825 & 1-4844

8

Direct Wires to

18

—

Observations—A.

Wilfred

Our

Governments.

May

4

—__

INC.

40 Exchange PI., N.Y.

Philadelphia

Reporter

Our

i

on

Los Angeles

•

Chicago

r

Dallas

*

31

_

40

Report

Reporter's

Securities

Utility

Railroad

15

Securities Now in Registration

Securities

34

Offerings.—

Security

Prospective

in

Europe,"

.

.

29

and You—By Wallace Streete

.

The Security I Like

Members New York Stock

The

Washington

and

CTflPKQ

0 I UUlVO

Boston
•




•

Chicago

Schenectady

•.

•

•
•.

;

Reeves Soundcraft

1

r

Diapers'

Worcester

"

Gardens,

Edwards

c/o

„

WILLIAM B. DANA COMPANY,

tuTTTTAiif n AtTji

...

nry

.

Publishers

25.

1942.

PfcsidGiii

Dominlon

-

of

Bank

and

on

Request

W!< V. FRANKEL & CO

Rate,

United

States,

U.

8.

of
pof year*, ill

$63.00

<

per

Record

-

*

eigTr

BROADWAY, NEW YORK 6
WHitehall 3-3960

Teletype NY 1-4040 & 4041

Wonthir,

Note—On account of the fluctuations In
the rate of exchange, remittances for for-

,

39

year

(Foreign pastage extra.)

subsetlptlons' and advertisements must

-S5 t"e^ade in New York fund,.

INCORPORATED

Mehibers

Publications

Quotation

S10.00 per seat.

bank clearings.
st

Prospectus

"<vr

pos«

Canada,

Other

onotatlon

c.iu

*

other Countries, $67,00 per year.

.

.

t.<,

In

Subscriptions

1957

thp

at

Possessions, Territories and
Pan-American XJiiion, $60.00

WILLIAM DANA SEIBERT, ITeslden*

qmiik

Sabre-Pinon

Eng¬

second-class matter Febru-

Subscription

9576

Se s&tiSkal teue^arket

C.

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

Editor & Publisher

rftrfrt

E.

Company
Reentered as

New York 7. N. Y.

HERBERT D. SEIBERT,

London,

& Smith

Copyright 1957 by William B. Dana

Office

Reg. U. S. Patent

'Federal Uranium

44

COMMERCIAL and

records, corporation news,
state and city news, etc.).

Glens Falls

5

FINANCIAL CHRONICLE

Thursday, August 29,

Y.

TELETYPE N. Y. 1-5

•

Radorock Resources

2

_______

_I

Industry..

You

,

TELEPHONE HAnover 2-4300

-

16

Best

State of Trade and

Exchange

ST., NEW YORK 4, N.

Corp.*

Narda Microwave

38

26

Monthly

Spencer Trask & Co,
BROAD

________

Salesman's Corner

The Market

Altamil

29

Securities

REctor 2-9670 to

Nashville

40

—

Regular Features

25 Park Place,

•

Teletype: SU 155

Bankers' Poll Shows "Tightness" of Bank Credit

The

Albany

Exchange PL, Salt Lake City

DA vis 8-8786

"Wage Pressures and

Labor Review, June, 1956.
\
_
2 See B. C. Roberts, "Towards a Rational
Wage Structure,"
Lloyd's Bank
Review, April, 1957.

For many years we

i

39

33

land.

25

HEnderson 4-8504

Washington

(Boxed).

Published Twice Weekly

have

Proposed

Office of Bank Supervisors

Public

tries,

by

the

that

most

.

School

evidence

and.

In

*

address

farmers

to

47'!

50I

International

Ger-

even

Exchange PL, Jersey City

DIgby 4-4970

-"is.

72%

statistical

25

Teletype: JCY 1160
New

o r

o

t2i9<«

tLate 1956.

Wharton

various

11 times

times

largest

1

Survey Finds 205 Industrial Firms

Fall Business Outlook

on

.

above suggests that the concentration Of demand in war times had

the

made

increased

in

s.67^1

>———

the

through

U.dK""""""— 1?5%

brief

j

Exch.

Spokane Stock Exchange

employees evaded the regulations

3Va times

of

m a

government, through its programs,,
couid not hold the price level.1
The attempts to keep wages in
check
in
many
countries with

59%

3'/a times

The

concessions

29%

'

Board

Optimistic

•;

1948

.13

Conference

Bank

feit the demands of workers
were outraged because of the

times

'

Members Salt Lake City Stock

many

times

Brazil

J.F.Reilly&Co., Inc.

25

_

the

increases with threat to the
prjce level became irresistible,
Austria, Denmark, Finland, the.
Netherlands, Norway, Sweden, the

51

Chile-.—

*in order

for

18

Opposed by George F. Bauer

'

countries. But it should be noted
that in 1955-56 the pressure for

168

France___

inflation

of

gives

195G

1937

1956.

|rends

table

Uncertain,

1

As We

>va^e control were ^successful
in part because employers and

(Cost of Living)

1948

Japan
itaiy__^—_

,

above

3 m iu^X^?lienCe United Kingdom, and

mdeed,

German

The

Outlook

—(Letter to Editor)

wage

s

Genii
and

1

♦

*

Economic

Revaluation of Deutsche Mark

(2) Wages, Productivity, and
t yr
Prices '

y

*

Higher and

f°reiSn markets.

•fiures.

world

Profits

16

Allen Glenn, Jr..

According to First National City Bank "Letter":

"p01? her competitive position in

devaluations, for they tend
aggravate
inflationary pres-

on
.,

15

Too Complacent?—T.

Corporate

^he Germans could improve their
competitive position because other
countries accepted inilatiouary *
Pressores.
The British, on the
other harld' ^ve been
concerned with the inflation of
recent years because of the effects

adee

Jones

*

valuationsand

•'

W.

PACIFIC URANIUM

country,

to some extent the failure of the
Germans to carry through an allout mobilization—as was revealed
justifiable de- after the war
But . the remark-

-I—mi

Installment Credit Still Creates Good Returns

—John

carefully
thought out
provisions for
im,

14

__

showed the best record of all on
the inflation front. This reflects

inflation,

13

Current Nuclear Power Issues in the United States

etary and fiscal policies. But Ger-

de-

not

Centers—Roger W. Babson.

Japan,

tent the inadequacy of their

TIDELANDS

Mergers and Acquisitions: A Government Lawyer's Views

France, and Italy reflect the damage done by war, though their
inflation also reflects to some ex-

dis-

STREET, NEW YORK

Telephone: WHitehall 4-6551

Requirements

—Clifton H. Kreps, Jr

The Future of Shopping
i

WALL

99

private savings adversely.
>

corners

obsoletes!

your

4

Differential

tion erodes insurance and

buy

to

Why Is the Market Acting the Way It Does?
—William H, Gumpel__

the

economy,

—William

Cover

Filtered Profits—Dr. Ira U. Cobleigh

inadequacy of limited Federal Reserve general control, and
our

r

AND COMPANY

Investment Challenge of Technology in Electronics

World Inflationary

i

!<

i

Questions

inflationary conditions, here and
abroad; singles out such contributing factors as:; war, wages
exceeding productivity, pressure of money, limited supplies,
and depreciation or devaluation of currency; discusses whether

'

3

(895)

Direct

PHILADELPHIA

Wires

to

DENVER

SALT LAKE CITY

Commercial and Financial Chronicle...

The

-

■

4

-(896)

Thursday, August 29,
i957

S

ducers, its results have been a-bit
.

V*
'

'

yf? spotiy7 .Total sales have ranged,
1 AXlV h'f
in the 4>ast decade, from a low of
$128 million, in 1947, to a high of
f:

"
,

?

;

By DR. IRA U. COBLEIGII
*

h

4

Enterprise Economist

■

•

1.

lion

A report on

the rising trend of profitability of P. Lorillard
Company, due to its pioneering in smoke filtration.

year.

use

their

sales

werent

the

By A. WILFRED MAY

share was
preceding

THE WORLDWIDE TREND OF

•

Accompanying our current stock
'

'

"

'

a practically unchanged
the case of common

ratio in
stock yields

~

breaks,

market •

RELATIVE

BOND AND STOCK YIELDS

.

roving its percentage of
1
® ...
vear should

tQ be

making

even

per

which
has been doing about 51/2% of the
total cigarette business, is believed

either cotton or crepe paper, and

of tobacco

net

from

31%

q^e^dTfteren^^

good old Sir Walter

tobacco, some 300 years ago, the

the

and

down

Back in 1951 there were only two
Raleigh brought-back to Merrie filtered cigarettes on the market.
England the custom of smoking Their scieemg mgiedients weie of
Ever Since

n

almost $254 million in 1953. For
1956 the sales total was $203 mil¬

;7-7 7

;7-.

'J' ill^

has

as

been

pointed out in our preceding related to Industrial Bonds.
~
a ripple 011 the industry wd
total. tv.,* saies,- ana gioss mis yeai . wuuiu columns much concern is being
The
«vshliV°^wovement
7
'
managemnt at Lorillard felt, how■'
4^'*'■ evinced
over
; Inflation-Motivated France
eyer, even then, that filters were.
the narrowing ; ; In France, where the
bond-stock
moving
at
«»
T"
the

has broadened
ed

,

.

spread to

and
all

-

the

eoun-

Vt ries

and
of

world

and ; a

great industry
ted.

there

While

lions

observation

h o

wh

m ore

smoke

1^of research, testing and
al1 cig^ette sales. _
By

mil-

w

U.

its

contentedly
puff on pipes,

Cobleigh

of

tastes

consumer

and

its

filter

was

presented

vanced

in the Kent cigarette

tractors.

Youths

long

were

of

it has

been

cigarette ' smoking

Of .Lonuaras

(even after a suitable apprentice-

standard-priced

saies. volume

filter tips.

7

>

IS

ship with corn silks) and it took - Perhaps we
for cigarette smoking to be-Hhe< Kent brand • because of its
come regarded as "lady-like." And
more exciting advance.:. Lorillard,

recurrently, * in recent^years: there however, is a multiple, .product
have been allegations,- more-sta^- company, with its'most famous
tisticai than -clinical-in nature, standard brand, Old Gold, ranking

their

brands .with., siis-" tipd in. the "Filter: King" with its

favorite

unruffled- 2est^and

-and

sulated

from

purities.

millions

while

nonchalance;

any

;

;;

smart

disturbing", im>/. 7,

over

This

stock

f

•■.*!/

in

hid

has

a

Embassy; Union
Leader, Friends, India House and
Briggs smoking tobacco; and for

40%

77

•

1.

j

19564

?b°ut tnree-iQurms.-oi ^nex. earn:

dividend -> of

-

'

-

going

• ..r

*•

1

•

SAV.eden

-

-

f

,

on

Sweden the yield on
33 leading common stocks is
3.8%
This is exceeded by the
4.24% (up
from 3.36% in 1954) on GovernBonds

merit

without

fixed

ma-

from
al

yields in Great Britain* ^

Italy,'. Austria,

and

' "V

^

,

double ;the: figure

was

$1.20

is

Tl.. :

than

more

bonds, but

here

even

the gap has been sharply narrow-

ing.- On/the basis of the compreliensive

gr6uR of shares

London

&

in

the

Cambridge

Economic
based oh 2?,2% Consols, the

l-^stock

risen

ratio " since

'

from *57

1939

has

On

the

65%.

to

France, bond yields exceed those basis of-thetleading shares repin
stocks*
And in England the respited iif the, Financial. Times

In Geamiany; the yield 011 stocks
tedly,/highly competitive and has has been rising, in recent years, as-v
been beset by an unusual number follows:
Aug.
Basic
of problems. But no satisfactory
A1I
Indus.

Metals'"

Miseei. (;
Ctrps.,.
'ZM%- 2.E
2.8S?»

20,- 1957.i-.ii.-:

5 Years

•Consols

5.5Gfi

N

4;G7

5.88

-

5.14Vi

5.80

-

Ago—.

On 2h'-ilo

Shares

Year Ago__:

1

Mfg.

Yield
on'Ord."

4.22

•3,24?,;(:?s92u;v^2fc,:-;2.e^7

efficiency. Some do the job better, tobacco.
■,*13;:;;4!2+""The Situation 'in laMn Amerira
(The cigar business of the most significant current progthe P. Lorillard Company, 7Lorillard, including the "Muriel" ress
inw catering to the rising
But even in that nori-ihflatiohAs in Europe, excess of bond
wtiich pioneered in research in brand, and with the exception of public demand for screened smok- ary country these returns on
avmtuo
over stock yields obtains in this
filtration, is currently being cred- Between the Acts (small-cigars), ing. ;
.7
^
•
equities" have W. consktently
ited with ^producing the best filter, was sold in March of 1956 to Coneven in
Venezuela,
Management is ^ energetic and exceeded by the-yield on
bonds;.7,
I? ,v . h J
attached
to its
Kent: cigarette, solidated Cigar Corp.)
forward looking, led by Mr. Lewis as follows:
: 7*,
- ,
: 7
7- ' lan<'. ofj. W®ncS?'
2
While nearly all filters are made * After
currency with three bolivars to
years of manufacturing at Gruber/ who
became President
4-Te.,
from cellulose acetate (Tennessee
High-Gr.
:
the dollar, and a 150% gold cover.
jersey City, N. J., operation of the last year, and was General Sales
Mtgc. Eds.
Indus.
Mcpls." The.
Eastman,- subsidiary • of Eastman plant there was
yield on government-spon¬
suspended in 1956; Manager at the time the big deci- 1353—
5.4 7
5.6%
" '
5.0% '
Kodak Co., is
sored. fixed-interest obligations is
the_mapor producer) and the headquarters of the com- sion was made to go all-out for
4.0
5.3
:
5.0
Kent
has
1955
added, in a special, pany for warehousing, production filtration.
4.0
5.4
5.2
13-19%, 12% on prime mortgages,
and

-

wvdv

.

trade-secret manner,-minute nat-

and

distribution

are

now

located

SSSSSTm^re °rfficie7newnfa^Greensboro, N. C.
The
lor

tne

ceiiuiose

acetate

material

ties

used)« Tlie public has eagerly accepted this Kent filter,: and Kent
sates
sares

reeeritlv

recently hove
nave

All of which

is

stockholders

been
neen

in

economies of this plant, the posted
increase on non-filter brands of

.11

soaring

soanng.

35

K

cents per

lH

thousand, wholesale,
and the

5 000

are

employees

livelv

interest

Lorillard

tk.!™
their

in

the fortune*

Thev should have

*'

to

1

be

y S+Y u

^

j

"

tke LoriUard Company, in. the. While Lorillard has-ranked fifth.
is
no
happenstance, among the major cigarette pro-

filter; field

enterprise

if- h -7 >

of

more

__

5.5

than

for

some

5-9^7

is

Bond

no

5.3

0

representa-tive

market

and

Govern"

in

Germany.)

7.

Switzerland

In

about

•

:

Switzerland

yield-

on

Mr. Gruber set
company

stockholders

" of

the
in

prom-ess

Julv

devastating

letter

23

complacency" and
drive

f.n/1

to

pronn

-of

shires

was

1957

missile

"in

1 QFifi
of 1956, when the

end

nomoie

commercial

of

of

tempo

his

wSSTfce^aid,^nhere^s
determined
ed

our

to-re^rture

but 2 oo/

^

T+oi

+un

Li.

ment,

DISTRIBUTORS

a

°ri prime TlSkS; to ZO,/c Oil Ilieuiu

uu «"",e

u

bas.s,
at

and other

FRANCISCO
SEATTLE

• IOS
•

ANGELES

PORTLAND




•

•

NEW YORK-•
•

at LL

levels

Government Bonds

CHICAGO

AND OTHER

-

f'7 rm

10 to

many

Sood - bond risks; with

*>

formed with offices
ham Building to

•

BOSTON

in

S®?'Vse

common

engage

curities
•

PHILADELPHIA

PACIFIC COAST CITIES

T.nko f
Robert

David

the

in

^^ers.

Dena

se¬

6

us

-

Common ffT.
ifavorins

ternational

leading commodity exchangee

HONOLULU

new look

DENVER, Colo.—The First In¬
Corporation has been

_'

Chicago Board of Trade

Private leered
radiotelegraph circuit to Honolulu
SAN

a

current

507%

per

in

The

Government

.

dffteremiab
IM
-Rnnrk
hut

!-

■

^Sources. For pre-War yields:

Valua-

can

t

blandly assume tl.at on
Itrend'in that direction .
(trend' m inai
temporary, and that

«">.we
own
owl1

merely
are

really in for

lionx3f.,Fqjit^Caplta,;A A comparison, by
May,
American Economic

effect

Review, Dec. 1939,

a

reversal

Stock

A,

Wilfred

Dresdnor

American Stock Exchange

•

over

expknd
expLnd

Form First International

focific Coast Stock Exchange
•

departmenjs,

should

of Old Gold appear to have found
source of new gold!

CO.
e

It

a

Ademberi-

Exchange

all

by sensible investors is indicated.
The makers

Dean Witter

Exchange

„7

Sn

-return bu
14% is obtainable

common .stocks

•«»»

in

year.

"

FRmiE LEASED WIRE SYSTEM

Honolglu Stock Exchange

fixed-in-

90%dver stoek Helds has been ^or'A
(and Indmtr al Bnmk fi 4ft"5. wHtev! wide a.m long-existing, and «id£nd TndmstriaVRonrl^ R
and ,u..6-c.>.—.
share earnings from $1
rings
$l,34[in 1956 Compared withl950 manifested a Bie ratio "rfctoV-fln »hb con e-j
34^in 19o6
rising-. In this
to above $1.75 for 1957.
On that

DEALERS

Midwett Stock

s7cks h7

on

—«°4 -»

s£s'r$slast

Mew York Stock

on

"3
which
exceed
equity
materially.,
7,.s 7. 771 - In Chile^ a. government-guar7"> Y -ianteed mortgage, bond yields 12>»
and
corporate
bonds
15-20/<?;
on

«ss

BROKERS

•

the rate

-lr>al7yields

-

Italy

t„

^

yield

•

si„ce 1938

pro-

UNDERWRITERS

8c

gains-pointed
77 ••7:-;7'.,7-: :■% '•

•

and

INVESTMENT SERVICE

down

ten^inS terttiXiol STades;

17

has7t
position
Old Gold filters are°iiespondw^hdfotervll^TO&'Thevi^
ing exceptionally well to the

Complete .1,

8-9%

capital'

some

In: Brazil

Government Bonds has since 1953

the yield
to 3%

equities

on

stocks.;
on

discounts. Con-

bank

on

from

ranges

""

the

9%

trastingly,

risen from 2.50% to 3.77% at, the
'sv^l

than
■

.

1 '.(There

navc ™01e.

•

enthusiastic

a^very good thing.,effective June 17, 1957,

Now the present pre-eminence .-prospects at Lorillard.

and

,

.

ment

Dianas oi reason

j

Company and .)»ts great enthusiasm forwell for the
filters- all
these things augur

stockhoiaers.

There

V1,

.

.

!

t

a

have

J. In socialist

Switzerland^ italyj' Sweden,7 and

-

r

been.

r^^^^^ivid^ids^thein^ was^ a here.ff;_;:7-:

Present

'

*

this trend has

May

Bonds

respectively from 5.38% to
6.05;% and from 7.33% to 8.44%

not

7 realized t h

abroad

I

j

it-, is

Perpetual Rentes

Industrial

risen

In
E nglands exceptionally
shares have constantly* yielded

I
y

level.

4%

the 5%

of Netherlands typically; ruled copsistently higher-than in the United
-"^/States,, In some years that, ratio

low

n

white, red and gold packr

king-sized

'the
7 But

Wilfred

on

: on

The Trend Confirmed in England

in
the
Lorillard nse in the regular rate, v
include Muracl, Heknar arid - 7 The cigarette business is,.^dinlt-

the

the, and

the

hiph of ^014

t

;

understandably

on

turns

differential,fat;!-

.

.

mon stoek

amazr

an

frnm

vcars

Hnst vc'irV to

>.

at

; Traditionals

namely, the
devotees of filtration,'is growing
rapidly, so thatr today

fiftHftWMte

rnrrpntlv

yield

of the

erasure

..

A.

nreferred^ stock

nrnHtifl.

nnH

th£ s

pf aging.^ There is also the youngster,

Now this last group,

.

Qoln„ff 'ttf

S

years

•tabled

riSiiilhtivP

111

-

7

SSSiS -1
S f w'Si'

and i
matic

en-

joined against embarking on the
custom'

•

.

then

has

constantly stood at the
comparative maximum, the return

present practical complete

-n excellent shape with net
work'-/-']
.
rni1itnl fimrrine in the order bf-•

for

ratio

almost

bonds

—with

-

even >

7"7v v

-v

.

to

tive

The

of 1956:
should be

gains

July

on

higher

About finances,' the; company is ]

-

th^vcigarette, 9th of priced itemKent 1956. apre--^
this year. till was Since
mium

,v, ,
.
the big industry product. But
has not been without its de-

is

V

half

t

-more;imnressive

nnproyed
most ad-

filtration;

use

it

U

j

the

equities since 1954 has
declined
'7of stocks reldi-\ from 3.96% to'2.88% ;' while'the
re-

cents por-ghare on the

the-similar period

c o

yield

spread

7 traditionally

against only 69 cents for

comn-lon>

the

of

between

$104,641,649, which con-V

a gross of
ver|.ec^ |0

^bd. ^prefprences, . they LoiiRard,
Company has constant

o

cigars,

or

Ira

filter

In

even
more
rapid rate with the
^rg|. gjx m0nths of 1957 racking up

alter tips werenccountm0 foi but

ere-

are

brand
was in-

+?
VTnfniw
troduced 111 19o2 when, totally,

A

a

fhead

ai

Yf ^
with its "Micronite"

•

has- been

ttung,

coming

the

climes

.

in

Bank

Review.

Thereafteri Germany,

Annual

and^ Bank

Deutsche
Switzerland,

Market

Laender,
Credit

±

Survey,
Monthly

Suisse

and Institute of Economic
Affairs,
Monthly Review.
France, Institut Na¬

tional

de

la

Statistique

et

des

Etudes

destructive to tne

.0

,

0*111

Swiss

vey,

be

,

FVytiyi

and

National Bank,
Monthly Reviews.
Italy, Banco d'ltalia Bulletin.
Sweden,
Godesburg Bank, Swedish Economic Sur-

will

*

EAST
.

p

-

.

Pun#!
rUIKl

SYRACUSE,
->

,

r

+

y

at

«

ic

securities business
2025

Teall

t

.

J

Fund Analyst, Inc. is
a

.

AfialVSt
N.

V.-

piVldnS
^

^

nfficCS

trollVi.i^nic

Avenue.

Preside*11)

Economiques. cl. Britain" London "and are Leonard Leveen, - - p .ngj.
Avrett, Jr., President; 'Cambridge. Economic Bulletin,' and -the -Alfred F. Di.Mareo,
L.',Mosconi,
Secretary; f,c;®^om,st;. For .La*il1 .American coi,li-? dent and JeromeTHyde, Sec

C.

arC

Stanley E. Greenblatt, Treasurer.

ATh"6pot''

mqu,Py

and

corres*

?^y-T?easurS

Number 5668... The Commercial

Volume 18ft

and

Financial Chronicle

(807)

r

became
-'zt.L*

„..

:•

J"

'/* ;SteeI Production

:Etectr|c-Output".o"

:

r

State ^ of Trade

•

.

*'

r

.

Carloadings
Retail Tirade

7"

;

.

.

'

Commodity Price Index
Auto

Industry

:

Production

By WILLIAM II. GUMPEL

of

J'

as

steel

operations moved ahead somewhat

show further signs of expansion.

gain of 5%

a

•

/eek

In the past week el-ctric ki'owatt

output registered an increase of 6%
industry reflected

stirring

toV

and

Mr. Gumpel concludes that
stock-bond yields may have induced a shift in the
composition of institutional investors' portfolios from stocks
to bonds and, in turn, caused the severe D-J industrial average
reaction. Suspects another test of the recent lows in middle of
September, and a possible halt to downward trend by a

over

automotive

1956 and the

over

that of the week before with

operations placed at 5.7% or 270,000 vehicles above the 1956 pace.
Latest available figures on the employment situation reveal
that the number of newly laid-off workers seeking unemployment
insurance

ended Aug.

The

to

dropped

low

new

a

for

the

during the

year

reversal of the present trend in the

of

claims

new

The

:

the agency observed, approached the
year's low, dropping by 12,300 to a total of 1,192,700 for the week
ended

disappointing

10. The low for 1957 came during the week ended
when insured unemployment totaled 1,176,300. However,
both figures were above the total for the like August week of 1956,

-r;

•

1

J",,"-

Fewer

plant

new

1,094,600.

shutdowns

v

resulted

in

a

l

.

5%

yield-proportion between

■

change in their com¬
policy. It

to 90%)

and

(from the past
and invest the bulk

remaining 50% iu corporate

municipal

chips,"

bonds

hand

account for the action of the Dow-

-

small

with

full

employment,

invest in Government-insured
mortgages. It is to be expected •
that some income of these enormous
Funds will be channeled:
into theses insured; mortgages,; atr
least for the duration of the tight;

full

'wait and1 see"-

to

and

been

Oversupply is responsible
weakening of non-

tracts.
v

for

hit

steady

a

,

see

metalworking
off

,

.

of

•

steel

These

s

.

The

new

-

cost-saving

creases

builders.

with

developments, will bring railroads into the
market, the metalworking weekly predicts.
..

:

senger

for

a.,

Still

not seem to
poor

This

these

to

lung

factors

do

.

Visible

com¬

Adverse

the

in

first

of

quarter

$410,800,000,000 in the second quarter of 1956.-

1957

1

....

and

;

.

.

,

:

•

annual rate of

•
,

In

the

automotive
/■

industry

-

.

United
:

.

..:

t

'

1

\

r.,

States

i

•}*:* 'T I

—m

$345,500,000,000 in July. Most t.of the increase was attributed to
gains 111 wage and salary disbursements in non-manufacturing
industries, particularly trade and services. There was a slight
decrease in payrolls among manufacturers of transportation equip¬
ment, food and apparel. For the first seven months of this year
personal income was at an annual rate of $341,000,000,000, up 6%
over that of the comparable 1956 period.
' i ■/>'
.

•

■;

Personal income in July rose fractionally to an

Munic-v

tax-free

and

Factors

.

$429,200,000,000

with

pared

bonds

rate

When

to materialize.

look in 1957

"

the "blue chips," eagerly picked ipals as compared with highest•
m
n
1
1
UP until recently by investment grade common stocks, may well,
There are
cracks in the global
trusts and
portfolios, as well as stated earlier, have led to a
boom.
England - and
thousands of odd-lot buyers
changed policy of , institutional
Japan are fighting prolonged in- as W tnousanas 01 oaa 101 ouyeis,
...... »...
A
n
flation and right here, according began
their downward move it
Lonzinuea on ■page /

higher level than anticipated,
rate of $434,400,000,000 in the second quarter of

record

a

in

behavior of the market.

Other

a

this year, according to the Department of Commerce.

10% ^reduction

all

«

reached

ad-

fully account for the

.

dropped from $83,000,000 in June to $59,000,000 in July.

Product, at

were?;:

smoking

cigarette

cancer.

cutting tools in July took a slight upturn.
Orders for the month exceeded $56,000,000, compared with $43,•000,000
in June.
Because
of vacation
slowdowns, shipments

The Gross National

Oils

rise.

.

4

.

fare

.

.

receive "va .pasr

airlines" did ' not

iiig

liance With the West in favor of
the .Socialists'drive for accommo-dation with the Soviets at the ex¬
ane finding the squeeze on profit ' pense of the Western? alliance; An *
margins greater7than>expected.-a; appraisal' of >the marketrcan ftot'
short time ago. The cost* of living be: - cortipleteid without; taking: a«
has risen : continuously
for Ml look , into: the : world's political
months.
: '
■
Mr- -'
•
- situation. •- The- .events ,in , Syria ■
*
.»
: have, rio doubt, contributed to a
Invisible ■ Auversp. inilU6HCfs ,. renewed* feeling of -uneasiness."
It was the ever growing invest- about the Middle East: The situament- demand : 'that -enabled . the tio.a , remains •»; cloudy,
slowing <
stock, market's most popular ba- down investors' interest for : the
rometpr ffr. the.Pow*-Jpnes Indus- stock;;market.£.•>'„
i
trial -Average—to rise to a high■.«?■ .'■•!?*
of 52Q.77,, on July.,.12,? though. ,>a
' •
general
feeling
of;" uneasiness
The1 stock jmarket. is reilecting
started • growing, with respect 1o the psychological, reaction, of;inthe near-term economic condi- vestors'
oyer-optjmjsm ,^w h 1 c h
tions. More and more people felt was based upon predictions .for a
deeply
disappointed
over
the growing economy in 195A. Morefailure of the much too bullish over, tight-money and the much
predictions for the economic out- greater yields offered by corpo.

carload-;

imports of crude oil, and the narmw:..profit, margin ?between re-s*
fined 'products-, .and' crude
oil
prices. Tobacco issues were out
of favor by further surveys link-

New orders for metal

•

reduced

the
freight-raise .itvvyere
disappointing.' The

and

request
?

car

new

passenger car

car

of passenger cars,. 28 years, combined

railroads'

versely affected by the President's

are

equipment offered by the

average age

irjgs

■

easier equipment financing, leveling 1
air Mrav^UMncreased railroad cdagh travel dud railroad
area.

enthusiasm for
•

The

all finished steel shipments

."The Iron Age" reports that railroad passenger car producers
four indications of better business in this somewhat depressed

the

Aircraft makers marked * by V a
down-trend • of
by cancellations orders in machinery, toolS: and
stretch-out of defense con-" structural steel.*Many' industries

expectations.

have
•

ferrous metal prices' and
accelFirst half reports from steel warehouses indicate business is
nearly 20% from the record rate of 1956. In spite of the decline, " crated reduction of stockpiling,

!

-

Auto

J

industry's biggest customers. Automotive
consumers bought steel in the first six months of the year at the
rate of 17.4% of all steel shipments, with the construction industry
taking 15.6%.
'
'!

o£

outcome

_

reasons

Still

products
and-,September tonnage will be, an. improvement over August, but
isome .-mills -are admitting a moderate disappointment over- latesummer-and-early? fall, ordering:,-7^
7:,.:
: y-v— -?•
. 7

the

_

^

cline

'

There is still open space on the books for most steel

as

another"

Stillr

reluctance to ..provide, much lead-time iri their ordering: pattern;
since a slight^squeeze in cold-rOlled sheet may develop in October

lead

assembly

Continued

\ iW

*

■

;
„

;

,

'
;

..

4

'■

•

>1;:

i

y\

j <
•.

•,

'

.

•

•'

.

)■

I

m/U J'1'

.

1

We

pleased to

are

a

plants

announce

the opening of

Direct Wire to

30

on page

reinholdt & gardner
st.louis

....

'

..

xxrOR SALE"
1;

>

■.K
a,

-

These

Beautifully Bound Sets of:

<•CHRONICLES,,

1895

to

1939—inclusive

1908

to

1928—-inclusive

1926

•

to

1952—inclusive

.

M

?

Subject to prior sale.

,

-

new york

Write: Edwin L. Beck

Phone:

-

,,

c/o Chronicle, 25 Park

>

REctor 2-9570

New York

J

G. A. Saxton & Co., Inc.

Available for immediate sale in New7 York City
<

7, N, Y.

Private Wire Connections to

Place

Dallas^ Philadelphia and San Francisce

'
'

;

.%
f

i

r




i

J

v—

£1*1''J <

i

A-. > *

9

?

■.

•4

r

i,

Ji .'if

—

■

t

K

*

rr

-rrr-r

>.

.

Administration

Housing

has made a change in its reguiations, to allow Pension. Funds to

are

violently opposed by the Chairindicating man
of
the
Federal
Reserve
lack of selling Board. The old world-wide expressure?
perience that tight money and
definitely

Mills^are moderately concerned about their-big; customers'.

and

.A,

interesting factors The

Another

Federal

volume,

In the steel industry this week, it is reported that automakers '
starting to order flat-rolled steel products for the 1958 model •
runs, according to "The Iron Age,"-national metal working weekly.

warehouses continue to take 20%cof

pre-?

be one of the keys to
steady decline and

Jones Industrial Average.

creeping inflation is a good thing
or that inflation must go hand in

on

may

are

off

and

market's

the

Some

'y:

institu-

ferred stocks.

w

tion

in

Kentucky, where there was some new unemployment in ^hc food
processing; electrical equipment and automotive industries.'- r • :..r.

big tonnage orders start to ilcKjd steel sales offices;;

of

number

a

stocks to 50%

of the

aim of Federal economic policy."
Ho

almost, without
interrup-

!

unemployment claims, but a year-to-year increase of 9% was
reported. ;Claims fell most noticeably in New Jersey, California
and Pennsylvania offsetting increases in Illinois, Michigan and

if

of Senior
enterprise.

may

mon

The increase in the discount rate
could
the brought it to the highest level in
market recede 23 years. Those who contend that
(1)

-i

decrease

same

investment

if

as

cor¬

tional investors may have decided
to cut their investments in com¬

performance

again:
.

Aug.

June 29,

when insured unemployment was

looks
*

leading

i elds" - Which

have in¬
of the "big interests"

a

stock

,

in
in

Such>an attitude;
coupled with staying on the sideare
asked the country" and "stabilization of lines and not adding t6'the supply
'blue
again and Ihe cost of living is a primary of high-grade, low-yielding "

the figure

Insured unemployment,

making

mon

to the Federal Reserve Board's
writing Chairman,
William
McChesney
(Aug. 24, 1957) keeps insiders and -Martin Jr., "inflation is the most
the public worried. Two questions critical economic problem
facing

'

•

in

yields.

yields

development

duced many

of the stock market at this

•

182,400.

y

the

75%

shown

still above the total for like week last year, when

stood at

below

This

week

by state reports dropped
by 22,900 to a total of 190,900, the agency noted. This was the lowest
volume reported since late October of 1956, the
Bureau added, but
was

show

Securities of the

bonds and stocks.

17, according to the Bureau of Employment Security.

number

longer-range outlook.

the changed

-

decline

stocks of

common

are

»■

views the

4-5^2%

steady

a

porations

Wall Street observer fathoms present market trends and pre¬

-Mr

r

jf,.'.

r;tnrrr-.~~r.-r-,

r» -

t

i.

,

■

Not
the
spread, between yields of stocks
and
bonds
exists, but also the
phenomenon that a great number

Financial Writer, New York City

'

offer

:

only

Business Failures

Industrial activity last week gave some indications of
itself

bonds

:

L

v-'.

.

..

Food Price Index

and

;

.

generally re<

•

yieldtf-'uf«1
jati&tiot ;4 >!"/77
' jr:j!§ •*' attractive ,in timesWheiitax-free '

\

•

'7

.

5

rrr~——— v

L. J

.'rr

.

■
'

The Commercial and

bank

Differential Versus Uniform

to

And

Bank Reserve

Requirements

By CLIFTON II. KREPS, JR.*

requirements. Though finding

for differentials

f

|

the basis of

on

Kreps does favor

liquidity

grounds of monetary control;

•

f
j

remove

•

i.

Th

f

instifvinoy »

•

.

It does
hi g h e

of

.

to

.

,

nnciple?

not appear, then, that
reserve

r

requirements

against demand deposits for tentral reserve city than for reserve
city banks, and for reserve city
than 1 for country banks, can be
adequately justified on grounds

the

to

two additional ad- either of liquidity or equity.
Are
(1) It does not subject there other grounds to explore?
the monetary authorities to the
Tbe
onc
other
ground
that
charge of claiming; to know more, seems most..nearly
adequate \l
re-;, about
the
individual banker's y that of control. That is, there mav
business than he:does; andv(2)
it%be; : times} when the monetary

has

of action

vantages.

must be maintained

as

of

to

In

replenish

legal

the

>

practice, then, whatever de-^does npt^confuse Mtfre ..reserve ieof liquidity a bank deems Qiorements issue .by perpetuating

gree

appropriate
in

other

and

in

maintained

be

must

components
than

reserves

group banks, instead,
of business conducted (central money mar¬
ket prime movers, regional financial
satellites, and local
peripheral banks), and would leave determination of actual

!

needs

of

e.,

geographic classification and

varying ratios of. net interbank
total demand deposits.

actual
liquidity,
individual bankers
in the individual banks, and not
to try to take account , of differ-!
ences in these needs in setting
reserve requirements. This course
termination

de-

serves.

reserves,

tthe,illusion that liquidity and lc- different groups of banks
reserve^ requirements ;/. aie ferent degrees, or even in
linked together. >
•
ent ways.
Required Reserves and.Equity

v;

con-

A

...

.,

,

■

:

V«

Qno

vthe

differ-

to ■ do this is through

way

to impose differential

power

tribute directly to liquidity mi any
>requirements.
important sense. Nor is. that its

^

purpose.

in dif-

.

The

reserves.
does
not

reserve

authorities wish to influence the
lending and investing activities of

prim a r y. £a b

of

required

secondary

renuired

basis of type

on

of

But the actual

a

tion

the

on

withdrawals

can be met.

law, any sustained decline in legal reserves below statutory levels requires prompt ac-

the desirability at—not
all—times to affect bank lending and investing policies. Admits
open market operations can achieve equally effective control,
but contends the power to vary reserve requirements differen¬
tially is a necessary substitute or supplemental tool. Would

.

which

matter

equity, Professor

or

requirement differentiation

reserve

with

reserves
•

adequate justification

no

any
calculated "average" needs
would
be both arbitrary
and
meaningless.
:
Consequently, it seems the more
discreet course to leave the de-

de-

liquidity provided by
the "legal" or required component
of a bank's reserves is largely illusory.5
If specified amounts of

University of North Carolina, Chapel Hill, N. C.

reserve

customers'

unquestionably a bank's redo
provide liquid assets

degree

Banking economist turns to the problem of bank reserves,
and plumbs the arguments of differential versus uniform bank

j
j

its

currency and
to pay
drawn by its depositors,

serves

posits

Wachovia Associate Professor of Banking

[

meet

fnand' for
checks

Financial Chronicle... Thursday, August
29, 1957

Its purpose is instead' to
a limit on the potential"r^

to differentiate in
; quirements
between

.

^

re-

central

re-

^ ^
bank • sprvp, nitv
*»ifw
liquidity needs to individual banks.
growth of "bank" credit and cle- :Aiq
bank credit
,y Positions, are there other try banks now exists, and c°u"*
JJU&1 ,d
^
A
these
ctiy0v
posits, thus providing an effective possible, grounds,; such
From time to
aS.J^Ufe three existing groupings of banks
time, proposals interbank demand deposits.4 There
basis for the regulation of 'the *hat might provide th
are advanced for
the
are
roughly similar to what we
abandoning the are several reasons for this:
credit and money supply
ough justificatipn. , We he
piesent system of differential rethrough i justification? . V We,-have noticed might call the - "prime .mover"
—
(1) As an incident of effective open market
ither
operations and other earlier, for example, - that as an usatellite »» and
I°r member
"peripheral" banks
banking operations, country banks credit nnntrnl nrtinns rlivsifrirvl fn ; incident to effective banking Op- qfthn nnnntw Khi«tnfln nri-.:„u
orndit control actions
to effective
id
designed to incident
banks of the
^cuuviny up- Gf the country, between which re*
must either have or have access
Federal Re¬
serve

in

g to demand balances in national
^3$-and regional financial centers, and

System

favor

of

a

reserve

system of geog

i central

':>] cities

Most recently,

1

for

example,
in January of

similar

need

reserve

require

country

balances

correspondent

cities.

banks

cities and

reserve

maintain
for

in

reserve

banks

to
requisite
services ren¬

as

a

dered.

year

( 1 957 ),

banks

(2) Correspondent

re¬

quirements.

this

city

balances in central

raphically

uniform

impose

case,

quired

icy

ber

in

Commis¬

their

sion of the

American

Clifton H. Kreps, Jr.

tion

of

a

serve

among

of

program

reform

and

in

the

member

adop-

tions.

bank

fact

requirements that would,
other
things,
eliminate

geographical
quirements.4
The

differences

uniform

dates at least

as

reserve

far back

in

re-

existence

affairs

reduction
re-

hold

part or all of
reserves in the form

legal

The

_

recommended

to

of balances with other banks.

Bankers Asso
ciation

banks

raises
For

that

a

of

this

example,

central

state

number

of

of

ques¬

should

reserve

against

central

if

balances in central

demand

(1)

*

,

,

posits

than

tofal

reserve

citv

-

SnnSn,

cities

^di^^ve

requisite^for-.' corresoondent
J

-

orresponcie

mnfUrofi

central

reserve

city banks hold substantial
amounts of individual banks' primary reserves

demand

•

nf

dp

deposits.

For these

can

establish

different

of
at

nun

.vmef
most

(and

liquidity needs for central
than

for

con-

aistriDution

_

oped

devel

nas

as a result of regional trade
Datferns and tbou„u thp<?p np1. ir.

meiely
greater)

P

*•!

reserve

8

reserve

reserve^

the legal (or required)

?
ar8ued that,

reserves

of

/lllus }} 1Pay„

+1

banks feel
kcep baiances in
other banks, either for operational
reasons or to guarantee the availcompelled

,

^

it. some

to

Ability of needed correspondent
services, the banks owning the

iJ to^reduce: balances
somewhat. ?

liquidity needs
example, suppose

For

a

central

re-":

the

case

tial

set

for

a

city bank loses $100,000 of
demand
deposits
(and
re-

serve

its

ments be

quired

re-

consideration of

retaining a differenrequirements, would

j

t

•

Re^uued Reserves and Liquidity

made

reserves), which must be
by reducing other pri-

up

of

mary reserve components

A bank s reserves, whether they
consisI °£,v'ault cash, deposit bai- vault,
ances

to be warranted..

(cash in

proposition, t since central
reserve city banks hold higher
Proportions of net interbank to

with

the

by

central

.

W™?.. <* the

r.v,

1

of the

crs

incident of

an

be

desirable

national

ff.

.

banking system's legal

and

higher legal

ferenKai

leicnuai

requirements

i-egerve

,

.ieseive

iequueiueu»

And the merits of this case would
more

evident if the

jwMclflK
sess.> to group

mon-

banks into cate-

on"the" basis of the char-

Sorics

nPfpr|stir

tvue

busi-

banking

of

actenstic xjpe or oanKnig uum
ness conducted _ 'local
ie*
810nal» or national, foiexanp ,
to correspond to peripheral, sa e lite, and prime mover banks 1stcad of on the basis largely o

that-reserve requirements for ditferent groups of banks need oe
different all the time, but only

that they should possibly be cmferent

some

^

of the time,

TT^fni

^uhstitute

same

balances with other banks), total demand deposits than' reliquidating earning assets, or sel,ye city banks, higher reserve
bank or
uv
with commercial
ooiiuvviut;.
r U1
*
c4uuaov
uc.
banks, or some bv borrowing. For a reserve Cliy requirements might equitably be
city
The Present System of
bank in similar
other
circumstances, the
equivalent of cash, have
central reserve
Requirements
net deficiency m
required reserves dian of the reserve city banks.
Ttie present system of differen- traditionally been considered a would be ($100,000 less
«
$18,000,
Whatever may be the merits in
tial
reserve
requirements dates
(<lH i y cushion enabling the or) $82,000, while for a country equity of this line of reasoning)
back to the National
bank it would be
($100,000 less however, it possesses one seemBanking Act,
ISee Member Bank Reserve Requirewhen
it
was
justified
oil
the me"t's»the Commission's complete study, $12,000, or) $88,000.
ingly fatal weakness. This arises
grounds that central reserve citv
The reduction of
1 fortUMe,pber *ar}k Reserve Reliquidity needs 0U!: °I ^be IaCI ^baI It would re"aVWUVLiuy quirements, the Commission's summary
and leseive City
banks, especially report (both published by the Economic has apparently never been ad- Quire that higher percentage rethe former, were
substantial hold- Pollcy Commission, American Bankers vanced as a reason for differential serve requirements,
determined

seem

sometimes

suffer a differential dis- geographical considerations, as at
advantage, as compared with^ the Present.'
.
/wng? them, in terms of. .. Ina sense, however, the gi catthe total percentage of deposits est strength of the case lies in it
reQhired for primary reserve pur- modesty. For it does not imply

based on a greater need serves) through adverse clearing P°ses- And one way to eliminate
balances.
If
it has no excess'this disadvantage is to require the
I°r liquidity in central reserve
tinning interest in the topic of dif- and reserve city banks than in reserves, this results in a defi-~ (central reserve and reserve city)
ferential versus uniform reserve country banks? Or on grounds of ciency in required reserves of $80
banks that hold the net interbank
000
($100,000 total reserve loss deposits, to-maintain higher Tegal
requirements, a brief discussion of equity? Or must some other jusless $20,000 reduction in total re- reserves. By an extension of the
major
arguments
favoring
the tifying principle be sought?

quirements, and

as

willing to grant that

are

might

mese net in
become
terbank deposits are part of the bfc„ome
o

In view of this current
and con-'

reserve

we

it

in- a^«ally, in central reserve -telhte, ^ph^bank,,

nnccim-tc
cessions

city banks

as

Report by a staff group of Federal- banks than in reserve
city banks?
Reserve Bank and Board of Gov- Finally, can valid
justifying argu-

uniform

in^Uy. ^alJ^^racte^
If

serve

presented
to
the
Congressional; requirements against demand deJoint Committee 011 the Economic
posits
in
central
reserve
city

of

banks do a banking business dom-

city banks

.

•

adoption

the

re¬

(in the form of net
interbank demand deposits) serve
proposal as a justification for continued

economists.3

on

har,d' and with "PeriPheral"
banks on the other; "peripheral"
one

credit
Thus there is a Significant con- -r ,r
ccntration of net interbank de- policy; to affect the lending and
mand deposits in- reserve cities investing policies, of prime mover,

h

city
1912, higher legal reserve requirement
however, when it was advanced against demand deposits in those banks, and for reserve city banks
Rnfthov
by Professor William A. Scott, of. banks than in
than-for country banks. But they
"country" banks,
the University of Wisconsin.2 Subdo not show that higher required
though
these
deposits
are
no
leseives provide higher
frequently, it was suggested both longer significant for legal reserve reserves nrovide higher liouiditv
liquidity.
by the Federal Advisory Council purposes? And as a
corollary,
Higher Required 'Reserves Lowers
to the Federal Reserve
Board, in does the fact that central reserve
Liquidity Needs
r;
1919, and by the Committee on city banks have much
higher raBank Reserves of the Federal Re- tios of net
In fact the most that hieher reinterbank to total de¬
serve
quired reseives seem to be able
System, in 1931.
And in mand deposits than reserve
city
1948, a uniform reserve plan was' banks justify higher legal reserve to do in this respect

ernors

with "Prime mover" banks,

as

do not maintain similar balances
in reserve city and country banks*

banks'

total dem

reserve

am

demand de-

\S: ;oJvvo pifv hnni^

]n
n^t intoid^anl^Jo

brief' "Prime mover" banks are
central money market banks;
"satellite' banks are in regional
±inancial centers alld maintain
close correspondent relationships

Simi-;

,!!!iri in^
£pnanpof^ balances wdththem

^
net interbank to

serve atMtimes be
^ht requirement differentiation
appropriate. (In

to dc-

correspondent banks in

^ral re^ve

cen-

the

and

re-

reserve ■;

concede that

we

access

Xgreatqr;^s^V^he

city.
banks than in reserve city banks,
and in reserve city banks than in
country banks.
And this is so
even

Economic Pol¬

of

—

t;o

liquidity, for higher

reserves

,

deposits

seem

grounds

on

needs for

(3) The banking laws of most
states permit or require non-mem¬

the

or

Thus there does not

a

-

either
base ^rat have
reservehave
bey"e^onai^hfhncia^centers

itselfthC SiZC 0t th°
•

u

^

The power
reserve

n.

In

to this case,

opposition

might

argued

be

that

noimufe

Something along these lines was s«g«
nested in Chairman Martin's reply to tho
i»«..... - :-r-.
.
7

s:n»
?AjsG:0""^ire- questi°"-.°"«

Pat??an

-

irrespective

of bapk«the

Control

,e.

geographical

other

material'for the use

Subcommittee

and

Dept;

I°m82nd.e

Pa',"

General tre

on

Management Rofport)
session,

2nd

Congress,

1952.)
<4

L

^neorlr°ln7nrVe%eSato

qSions^nd
rf

the

of

.

476.7):
unN

.

chairman Ma.-t.n stated 1 at

for sonie banks on the basis of form"reserve proposal, which might be
their holding high proportions of explored, would be to amend Section^
longer w,2In ,a, le"cr of Dec- 31» 1912» to the possibly because it does not seem net interbank to total demand dc- of *he Federal
.^e(nVthat, to b?
true to the same extent.
The Fed- wTii?,ar/c S?rier ,G!fss' Se® H- Pa''ker to be much of a reason. The conbe spoiled to the total de«'dy«d
I
Willis, The rederal Reserve System. New
eral Reseive Banks are
the hold- York, 1923, p: 447.
cept of liquidity needs is a fuzzy mand deposits subject to reserve reserves, a central reserve or reserve
^
ers of the
legal reserves of tlicir
jKarl
b°pp» Winfieid w. Riefier, one at best, but even if wide dif- °t those banks. This process might bank must
^.locatfeK i" aI^ °"heyiFederal
a»d Woodlief Thomas. See Credit Policies, ferences in
mcmbei banks.
these average needs well create more inequity in the
However, central Hearings before the Joint Committee
ReservenBcard of" Governors to perm"
reserves.

But

under

the

Reserve System, this is
i-»

„

Federal

nZ

27,

1957,

111,

1,

YrtSfi

7.

i

.
„

,

banks
of

city

TT

J

and

.

are

reserve

Clly

,

Imnlro'

banks

including

„

„

pi imary

the

legal

rere-

n

ed ves OI

i^Jhey

reserve

classes

require-

of banks

,

ritv

still substantial holders

lnrlitrirliTil

serves,

some

,

on

reserve

ments for

no

.

non-member banks. That

the Economic Report, 80th Congress,

2nd

April

13, 16, May 12, 13, 27,
1948' pp- 131-52.
4 Out of $11,820 million of net domestic
interbank deposits held by all commercial

session,

£anks as ?f Scpt- 26« 1956» for example,
$11,400 million was held by Federal Re¬
serve member banks; of thrs total, $3,982

are large net holders of

ci"i:

•A. addrew
by Prof. Kreps before ,he

"f,'.V'by9 "SSZfJS!"SSis^cJSS

Baiikers"conferenc^r0"P




net

banks held only $1,243

domestic

interbank

could

be

demonstrated

reserve

city,

likely

that

would

be

groups

as

(central, reserve,
country), it seems

differences

just

as

in

wide

needs

between them, so that

A. J. R. Smith, "The
Functions of
Reserve Requirements," in Bank
Reserves,

November

application of the higher

pp.

8-11.

any

bank in

^"derive "any rationll
and

logically

defensible

f°ri}lula" f°r relating
rentage

a

reserve

city or

central

^

reSCl'Ve

"magic

varying perrequirements

»
obYe'tives^oTThl'unUom ^eserve^rj
posab by eliminating or
Q,.n*eJ,UIf
n"would

reduces
permit the

^
desig-

total demand

V'oT:
1953.

reserve

requirements than would be elim- serve city to carry idwer *"®s^herwise,
hiated by the new method of whe"eS t0heanltmTof th^Ubank's
determining them. And in any justifies it (such as a relatively J"sl^ther

within

5 See

million of

deposits.

between

classes of banks

6
°

See
oee

noto
note

4
4.

rese, ve

reserve

Clt/ reserve cities L
banks« "tf^ as

and

present.

at ^

through

accomplished

be

could

Continued

from

low

differentiation in reserve require¬
ments

of banks-jbanks might be

those

however

grouped

could

that

—

not ; be

achieved with equal effectiveness
'

market operations.
This is probably true, but it does
not negate the proposition that it
is desirable to have more than
one string to one's bow.
That is,
the power to
vary reserve - re¬
quirements differentially, like the
power to engage in open market
operations, already resides in the
monetary authorities. With some
through

open

permit more
of banks

to

amendment

pre¬

into

classification

cise

it may at some times and

-groups,

circumstances

in some

serve

as

a

useful supplement to open market

operations

needed substi

as a

or

¬

them.

tute for

ments

liquidity

they
•

require¬

reserve

reflect

not

do

investors

needs

may serve

diminishing

by

investments in

On

The

the

on,

policies

become
or

apparent.

more

not these policies are

effective in the long run,
nevertheless likely to be

they are
pursued.

and so will the whole econ¬
The longer-range ' market
be
subject to the

tight

•factors in

the

situation, the leveling

international
well

clouded

the

economy,

situation,

political

motivate

of

our

its

Both

Much

of its future trend will depend on

According

to

the

experts there is

majority

from

time

Saxton

direct

a

wire

ToWm. G.

This announcement is neither
•

;

a pos¬

NEW ISSUE

an

offer to sell

renewed

reactions

the

on

Daniel
F.
Jack¬
members of the

Boulevard,

son

New

York

and

Midwest

'

-

.

likely;

are

be the crucial

even a

period.

testing

Stock Exchange.

;

solicitation of offers to buy any of these securities.

August 28, 1957

;•

power

;.:.v"...

many years, and the banking sys¬
tem is
accustomed to
operating

and

with

it.

under

this

amendment,

be
used effectively for purposes of
monetary control — as a supple¬
ment to open market operations
or as a
substitute for them.' Pos¬
may

514%
;

differential

of

requirements

ments

;

though

major

two

significant

less

shortcomings

differential

decisions

the

of

member banks

the

of the Public Debt. Part I,t
See also William R. Allen, "In-1
Deposits and F.xcess Reserves,"
of
Finance,
XI
(March
1956),

Journal

68-73,

V

from such of the several Under*
lawfully offer the securities in such state.

■*>''' Copies of the Prospectus may be obtained in any state only
;

\V.

■

writers, Including the undersigned,

may

as

'

White, Weld & Co.

V

■

■

4

'm

Stone & Webster Securities Corporation
A. G. Becker 8C Co.

68.

esp.

v

to

Management
475.
terbank

Eastman

.

■-.<

Joseph Wood Rutter,, partner in
Rutter & Co., members of the

New
passed

Exchange,

Stock

Aug. 22 at the aee of 74 fol¬

lowing

an

Harriman

Kidder, Peabody & Co.

Ripley & Co.4

Lazard Freres Si Co.

;

Paine, Webber, Jackson 8i Curtis

NEWARK, N. J. — Hemphill,
Noyes
&
Co.
have
opened
a
office at

branch

H.

Street

744 Broad

the management

Bear, Stearns 8C Co.

Carl M.

Hemphill, Noyes & Co.

Loeb, Rhoades 8i Co.

This announcement is neither an
The

Street under the manage¬

Branch

branch

office

at

West Wall Street under the

Equitable Securities Corporation

Shields Si Company

Dominion Securities Corporation

Alex. Brown 8i Sons

F. S. Smithers 8C Co.

Shuman, Agnew & Co.

'

Tucker, Anthony & R. L. Day

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

6.40% Cumulative Preferred Stock,

man¬

these securities.

Second Series of 1957

(Par Value $100 per Share)

Price $100 per
Plus accrued dividends from

Incorporated.

Share
September 1, 1957

Copies of the Prospectus may be obtained in any state only from such of the
writers, including the undersigned, as may lawfully offer the securities

Walston Opens
New Branch

Sixth

management

Street

Stone 8i Webster Securities

of James

M. Lynch.

several Under¬
in such state.

White, Weld Si Co.

-MEDFORD, Ore. — Walston &
Co., Inc. have opened a branch
East

Lee Higginson Corporation

El Paso Natural Gas Company

205

manager for Kramer & Company

127

W. E. Hutton 8C Co.

August 28, 1957

agement of Thomas J. Barnicle.
Mr. Barnicle was formerly local

at

Drexel 8C Co.

100,000 Shares

MIDLAND, Texas—Underwood,

the

Incorporated

;

.

Neuhaus & Co., Incorporated have

under

<

NEW ISSUE

Paine.

Underwood, Neuhaus

office

"

Salomon Bros. 8i Hutzler

Laurence M. Marks Si Co.

Spencer Trask 8C Co.

Shuman, AgneW Branch

a

*

Hornblower 8C Weeks

Nesbitt, Thomson and Company, Inc.

Estabrook 8C Co.

ment of Clinton E.

-

Wertheim&Co.

G. H. Walker 8i Co.

OAKLAND, Calif. — Shuman,
&
Co.
have
Agnew
opened
a
branch office at 360 Twenty-

opened

A. C. Allyn and Company

Dean Witter & Co.

.

Dominick 8i Dominick

Clark, Dodge 8i Co.

of Roland

Hill.

Second

Smith, Barney & Co.

,.

-

Hallgarten & Co.

under

Merrill Lynch, Pierce, Fenner & Beane

,

• •

extended illness.

Hemphill, Noyes Branch

\

BJyth 8C Co., Inc.
Goldman, Sachs 8C Co,

Glore, Forgan 8C Co.

Dillon, Union Securities 8i Co.

Incorporated

away

' '

Lehman Brothers

The First Boston Corporation

Incorporated

J. Wood Rutter

York

1- i-

assets

of

reserves

p.

«:

deposits)

interbank

excess

»

Subscription Price 100%

/

they keep the

(legal reserves
affect the total
banking system.
With
uniform
requirements
this
would
not be true.
See Monetary Policy and the

and

cash

their

of

4

cited

require¬

reserve

form in which

change the
bulk

$35

share of Common Stock subject to adjustment in certain events.

for uniform?'ones.

abandoned

"8 Furthermore,

with

Company

September 1, 1977

subscription offer will expire at 3:31) P.M.; Eastern Daylight Time, on September 11,. 1957. The several
Underwriters may offer the Debentures pursuant to the terms and conditions set forth in the Prospectus.

fore differential requirements are

the

4

Company is offering to the holders of its outstanding Common Stock (including Common B Stock);
through transferable subscription warrants, the right to purchase 514% Convertible Debentures due,
September 1; 1977, at the rate of $100 principal amount of Convertible Debentures for each 29 shares
of such Common Stock held of record at 3:10 P.M., Eastern Daylight Time, on August 26, 1957. The

to
such
a
system. ;• At least they
should be carefully considered be¬

than

Convertible Debentures due

■

■

- ■

.

The

outweigh the objections noted

above,

■

•

Convertible into Common Stock through August 31, 1967, at a conversion price of

.

per

sibly these advantages of a. sys¬
tem

$60,000,000

El Paso Natural Gas

minor

With

power

:

.

.

A. G. Becker Si Co.

Corporation

The First Boston Corporation

Eastman Dillon, Union Securities Si Co.

Lehman Brothers

Glore, Forgan 8i Co.

Blyth 8i Co., Fnc.

Goldman, Sachs 8i Co.

Incorporated

Winslow, Cohu Branch
ELMIRA, N. Y.—Winslow, Cohu
&

Stetson

at 125

Pierce

have

opened

an

office

Wall street with Gerald L.
as

representative.




■

Harriman

Ripley Si Co.

Kidder, Peabody 8i Co.

Incorporated

-

Lazard Freres Si Co.

Merrill Lynch, Pierce, Fenner & Beane

^

Paine, Webber, Jackson 8i Curtis

Stock

Exchanges, announce the installa¬
tion of a direct private wire to
of the 1956-1957 lows can not be
Wm, * C.
Roney
&
Company,
ruled out.
Mid-September could Detroit, members of the New York

downside

of

nor a

j

—

'

to vary reserve require¬
ments differentially has resided
with the monetary authorities for

Rein¬

Rice and Company, 141 West

The offering is made only by the Prospectus.

v

\

on

to

Roney

111.

CHICAGO,

differential

of banks, though
to reduce liquidity

.

Inc.,

Co.,

Daniel Rice Wire

to

people, seeking quick

high, the market offers

ever,

broad trading

a

&

52
Street, New York City, have
A.

installed

sibility for technical rallies. How¬

present market.

the

Wall

chips"

Having receded 50 points from

foreign

and the stock

economy

between

"blue

profits.

greatest long-range influence
upon

for

will

which

time attract

opinion, will exert

my

interest

ations"

elections

our

the Middle East.

policy in

money

German

results

Apart from many other factors the

off of

the

of

the

and

G.

holdt
&
Gardner,
400
Locust
low-yielding "growth stocks"
Street, St. Louis, Mo., members of
may
be lacking,
but sound
the New York and Midwest Stock
equities, Offering good yields and
Exchanges.
capable management will come to
the fore as well as "special situ¬

outlook ..will
outcome

Reinholdt & Gardner

get checked by,,a
present trend in

and

omy.

Whether

the

Installs Wire to

downward

yield-relationship

tinued

the fight against
effective, the stock
greatly benefit later

be

may

closing
high of

its

bonds and stocks. Until then con¬

Should
will

market

year's

and

market's

of

reversal

the action of the long-term money

market.

effects of the Reserve's tight money

grounds of equity.*
the other hand, though,-the

justified

in

inflation

needs somewhat. And they cannot

be

their

stocks

common

favor of bonds and by standing on
the sidelines marketwise until the

may

Differential

454.82

tendency

Why Is the Maiket
Acting the Way It Does?

action of the stock market.

Summary

of

520.77.

groups

among

this

between

area

5

page

7

(899)

Number 5668.. .The Commercial and Financial Chronicle

Volume 186

jSmith, Barney 8i Co.

Dean Witter Si Co.

.

^

8

The

(900)

Detroit Harvester Company

—

Financial Chronicle... Thursday, August 29,

Commercial and

Analysis

—

New York

Hanseatic

5,_N. Y. .
^
_
Federal National Mortgage Association—Analysis-—Rodman &
Renshaw, 209 South La Salle Street, Chicago 4, 111.
General Cable Corporation—Analysis—J. R. Williston & Co.,
Corporation, 120 Broadway, New York

Dealer-Broker Investment

Recommendations & Literature
It is understood that the firms mentioned will
to send interested parties the

Koppers Company,
42

he

pleased
following literature:

«-

Broadway, New York 6, N.,Y.

115

COMING

EVENTS
In

Investment field

Co.,

Inc.—Analysis—Peter P. McDermott &

Broadway, New York 4, N. Y.

6-7,

Sept.

Wall Street,

Turnpike—Bulletin—Tripp & Co., Inc., 40
-New York 5, N. ;Y.
/
;

1957

Calif.)

Federal

*

,

Midwestern Instruments

Navy; an artist's
showing all 21 of the atomic vessels now in
operation, under construction or planned; a table showing
the principle contractors, for the ships and reactor com- V
ponents; also mentions the large Swiss and Dutch holdings
X of the Fund's shares. Comments on High Voltage
Engineering
Company and Foot© Mineral Company—Atomic Develop- f
;;t ment Mutual Fund,* Inc., Dept. C, 1033—30th Street, N. W.,,:
; Washington 7,'D. C. '
* r.'-.
V"\V-\ >

—

Products, Inc.

—

Bulletin

—

Association brief

View— Monthly

San
•

.

•

Juan, Puerto Rico,

;

1

,

:/
-•

f

h

on
-

-

Investing for Inflation—Lists of suggested securities in current
r
"Market Review"—Harris, - Upham & Co., 320 Broad way,'
j! • New York 5, N. Y. Also available are analyses of Hertz

•

-

\

•

'cusses 30 Rail Equities.

^1

-

y

;

ly

NSTA

t

i i

i

}

4, N. Y.

.•

"

-

»

*

i| American Agricultural Chemical
.j

.

Gas

&

Electric— Data

..j,

Broadway, New York 6, N. jY;

|

bulletin
,

;

■

ing at IVIark Hopkins. Hotel,

Association

Also available is

'

i

Joseph Faroll

are data on Columbia Gas System.

Columbia Power

James Richardson

Corporation, Limited

The

annual

ment Traders

ASSOCIATION

OF

PHILADELPHIA

meeting and emotion of officers of the Invest¬
of Philadelphia will be held on Tues¬

Association

by
Oct.

day, Sept. 24,1957 in the Ballroom of the Warwick Hotel.

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

10-11,

ing at Beverly Hills Hotel.
Oct, 12, 1957

a

'.X:

New York annual dinner dance

vȣ.

\

the Commodore Hotel.

at

&

Nov. 3-6, 1957

(Hot Springs, Vs.)
National Security Traders Asso¬

f;

.

—

ciation

Review

&

Annual

the Homestead.

Dec. 1-6, 1957

Continental
i

Co.

—

James

G.

National

'

•

•

.

wood Beach Hotel.

Mundy

James B. McFarland

Rubin

Hardy

April 23-25, 1958 (Houston, Tex.)
Texas
ers

Group Investment Bank¬

Association annual meeting

*

Memorandum

—

J.

J.

Shamrock Hotel.

June 9-12, 1958 (Canada)
Investment Dealers' Association

B.

of Canada annual convention at

Son, 419 West Jeffersort. Street, Louisville 2, Ky.
Illinois

(Hollywood Beach,

■;

at the

Milliard &

at

-

Investment Bankers Association
Annual
Convention at Holly¬

Street, St. Louis 2, Mo.

Commonwealth Life Insurance

Convention
~

Fia.)

—

Company—Review—Scherck, Richter Company,

320 North Fourth

(New York City)

Security Traders Association of

list of

Corporation—Analysis—Vilas & Hickey, 26 Broad¬
New York 4, N. Y. Also available is an analysis of
Westinghouse Electric Corporation, a comparison of Rail¬
road Income Bonds, and a circular on
"Bargains" in better

Cochran Foil

(Los Angeles,

Firms Board of Governors meet¬

way,

.

1957

Calif.)

Chrysler

'•

a

Omaha Club).

Sons, 173 Portage Avenue, East, Win¬
nipeg, and Royal Bank Building, Toronto, Canada. -

4

and

Happy Hollow

Country Club
INVESTMENT TRADERS

&

railroad bonds.

frolic

annual

field day at the

1

Co., 29
Also available in the same

—

v-

Oct. 10, 1957 (Omaha, Neb.);
Nebraska Investment Bankers

111.

Western Gas Company—Analysis—A. G. Becker
Co. Incorporated, 60 Broadway, New York 4, N. Y.

British

Firms Board of Governors meet¬

Commodore

Association of Stock Exchangs

; | Arkansas

;

Oct. 7-8,1957 (San Francisco,
Ctl.)
Association of
Stock-Exchange

,

securities suggested for"investment."

American

Investment Bankers Association
Meeting at Santa Barbari
Biltmore.

Co.—Bulletin—Bache & Co.,.

36 Wall Street, New York 5, N. Y.

,

\ X': '

Fall

America—Memorandum—Freehling, Meycr-

hoff & Co., 120 South La Salle
Street, Chicago 3,

;'

1

*

<5>

the

I.; N. Y.

Sept.-25-27, 1957 (Santa Barbanu
Cal.)

.

at

of

Security Traders Association
of
New York stag week-end at
The

'

& Wechsler.

Socony Mobil Research & Development—Information—Socony
Mobil Oil Company, Inc. 150 East 42nd
Street, Rm. 2400,
New York 17, N. Y.
Aluminum Co. of

■

(Chicago, 111.)

Sept. 20, 1957 (New York
City)

YORK

Hotel, Saturday evening, Oct. 12. The probable cost per couple
will be $30, including cocktails.
Reservations may be made with Arnold J. Wechsler, Ogden

Ethical Drugs, and Utilities, with lists of "Sheltered"
Stocks,
Bonds for Income,, and issues expected to earn more in 1957.

|

-

annual Dinner Dance will be held

the

(pre¬
12 at

Dune Deck,Westhampton Beach

Security Traders Association of New York will hold its
the Dune Deck, West Hampton Beach, Long
•

The

;

^

dinner Sept.

a

Chicago 2nd annual golf outing
Country Club.
v

v L.

Island, beginning Friday afternoon, Sept. 20. Tariff approximately
$50." V
'
•V '
V.
'

.

Research—Discussion of outlook and list of companies strong
in research—In current issue of "Market Pointers"—Francis
|
I. du Pont & Co.,; 1 Wall Street, New York 5, N. Y. Also
!
in the same issue is a study of Department Store stocks

1:

NEW

OF

at

Club

at Medina

AVAC*

stag week-end at

\

,

The

ASSOCIATION

day

Investment Analysts Society

r\f

11 UlVft

TRADERS

by

Sept. 19, 1957

,

SECURITY

field

Country

the University Club).

42

•

Jones 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

i

Chicago

annual •;

ceded

■

\ Over-the-counter Index—Folder showing an up-to-date comparison between the listed industrial stocks used in the Dow-

;

21st

; / Medinah '

■

— Current information — Yamaichi Securities
Company of New York, Inc., Ill Broadway, New York 7,

New York.

(Chicago, 111.)
Municipal Bond Club of

il

Japanese Stocks

Whyte's Restaurant.-:

Sept. 13, 1957

"

"

of

Customers' Brokers annual dinner and
election

V at

2-

Corp., Corning Glass Works, and Black & Decker Manufacluring Company. Current issue of the "Pocket. Guide" dis-

J-j

•

v..
page

;

Continued

*

'

•

Ri<|0,

■

fj

•

securities

(New York
City)

Association
,:

Rico—Quarterly Report to investors in Puerto Ricaii
securitiesT—Government Development Bank for Puerto

able is current Foreign Letter.

jj

Sept. 12, 1957

Puerto

investment letter—Burnham and
Company, 15 Broad Street. New York 5, N. Y. Also avail¬

>

1

•

on

Hopkins Hotel.

Conklin

De Witt

^

■

Bar

conference

-

Francisco

laws & regulations at
the Mart

Aisp

..

'

j;

irig

Underwood, Neuhaus &

Organization, 120 Broadway, New York' 5,. N. Yr ■ t
f;
\
( Northwest Production—Report-Western Securities Corp., .1:
,.y
Exchange Place, Jersey City 2, N. J. Also^available are re¬
ports 011 Three States Natural Gas, Delhi Taylor Oil, apd.
Big Piney Oil & Gas. \

,

Burnham

Starch

National

'

-

Analysis

.

conception

:

—

>■Co., Incorporated, 724 Travis Street, Houston 2, Tex.
v
available is an analysis of Topp Industries.; - ;<;
: ' 1

(San

,

-

Atomic Letter (No. 30)—Features the Nuclear

1

<

Maine
,

1957

Manoir Richelieu, Murray

Bank ,&

Trust Co. of Chicago—
Memorandum—Lamson Bros. & Co., 141 West Jackson Boule¬
vard, Chicago 4, 111.

Bay«

Quebec.
Oct.

(Colorado

29-Nov. 3, 1958
Springs, Colo.)

National Security Traders Asso¬
ciation Annual Convention at
*

Firm

Trading Markets in-

Willard

F.

Rice

John

'*

E. Knob

The Nominees for Office for
G.

the year 1957-53 are: President,
Mundy, Suplee, Yeatman, Mosley & Co.: First
VicePresident, James B. McFarland, Stroud &
Co.: Second Vice-President, Ruhim Hardy, The First Boston
Corp.; Secretary, John E.
Knob, Drexel & Co.; Treasurer, Willard F.
Rice, Eastman
T

the Broadmoor.

T1UDING

James

Pacific Power &
and many

Light

Union Securities &

other:

Dillon,

Co.

•

i

Natural Gas

DEPENDABLE MARKETS

Companies

Transmission &

*■,

■

Three States Natural Gas

Producing

Big Piney Oil & Gas

TROSTER, SINGER & CO.

Special Reports

on

Request

Security Dealers Association

Trinity Place, New York 6, N. Y.




■

* -

'

s i

,

.

DEMPSEY-TEGELER & CO.

I

Western Securities
Corp.
One
Exchange

Place, Jersey City, N.J,
Telephone HEnderson 2-1000

Open-end

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

IFlorida's

Invest in

Goldens/Trmngle
TRADING DEPARTMENTTELETYPE MM5I

1 ALFRED
&

74

'

Northwest Production

Delhi-Taylor Oil

York

*

Bank, Insurance Companies*

si".

Industrials

Operating Utilities

Members: New

SECURITIES

'

«

•

FLORIDA

D.

LAURENCE |

COMPANY

INVESTMENT

SECURITIES

Phone: Miami, FRanklin

f

v

201 S. E. lst Ave. Miomi,

Flo-

3-"

^

Number 5668... The Commercial

186

Volume

and Financial Chronicle

(901)

too

Morality of Money Management
By HOWARD E. ISHAM*

the

of

one

ardship,

management of money," Mr. Isham

demands

the

industrial and instalment credit managers, and

of

buried

lack

of it,

that
-

would

have

his

nancial

ac¬

stewards

with

mon

responsibility
stability,

been

of the talent with in¬

of

responsibilities

as well as the traditional responsibilities of
producing goods and services at a profit.

the

are

com¬

economic

The moral force, in the man¬
agement of-money, is the integrity

sums

of

invested in busi¬

money

managers.

officer, the industrial credit

which have resulted in such poor

telligent,

constructive

the business

Currently prob¬
social wellbeing, our- economic philosophy
and aspirations have become an
important factor and problem of
business management. While these

decisions.

lems

horizons of general manage¬
ment, of which financial manage¬
ment is an important part, they
also

■

.

ideaUs^!"e'

~SiVe US practical by the mortgage banker matched
borrower-and must be
and the

ii

ine

t.

.

businessman has said, "Teach

jDractice, and less theory."

more

industrial
man.

should like to present

■m

Practical

approaches

sponsibuity

©f

/

to

money
_

ment,

of- vwnch

important

credit

facet.

The

™freth?

able

re-

manage-

is

most

a

Talents

The

installment

principle

of

few amortization of debt

a

the

basic

and

prin-

credit

planned

stewlearned at such
was a

R, ,d c

are

we

help

•

in

en-

Lipr°fPer+
talents, to

gave five

one

other, two, to

another,

an-

to each
he gave according to his ability,
Years ago the value of a talent
was
approximated
at
$30,000.
one,

Valued in terms of today's dollars,
it would of course be substantially

these

So

more.

managers in
the word.

[

were

men

the fullest

money

sense

of

And, "He who had received the
five

talents

went

at

and

once

[ traded with them; and he made
live talents more. So too. he who
had

the

talents

two

talents mofe. But
ceived

dug

the

made

wnu

aic

talent, went

one

two

Aiad

re-

the ground and hid his
money."
Recall also that on his return,

the

in

I

rich

called

man

for

t0 d0

an

ac-

history of the mismanagement of

punished according to the stewardship exercised,
It is this accounting that strikes
home

to

us

as

modern

money

managers—how will our stewardship in today's chaotic market be
appraised tomorrow by our stock

-

holders, customers, associates and
the general public.
].«

h

,.

,,

,

...

,T

Cultivating Money's Morality
If

stewardship is one in
take pride, the seeds
of accomplishment must be sown
and nurtured daily. I will go a
step further and say we must cultivate the morality of money. By
our

which

this

I

we can

do

not

that

mean

money

itself has

byTe^eM is derived from
of this prominence

Let

the

us

field

'An

look
of

address

at

activity in
management

our

satisfy the
community.
This
growth phenomena leads us to the
point where in some places living
of

wants

by Mr. Isham before the

'Dartmouth

College.

over, N. h.




Han-

Those

who

direct

the

great

industry, 'require

Service

to

Moreover,

the

Community

reference

has

made to "the service to the

This announcement is not

>

end

past

that

will

be

misfortunes

escaped

of

and

the

new

been

goals of satisfaction achieved. The

com¬

reward

for

such

statesmanship

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

an

The

the

$40,000,000

,

beyond our income is even classed
a virtue. In business parlance,
living beyond one's income is
overtrading, and overtrading is
po0r stewardship with all its at-

as

'stewardship

Financial

>

Southern California Edison
First and

"

tendant ills.

takes

on

m%

importance in to-*
day's m0ney market. The lending
officer could quickly exhaust a
bank's lending capacity but his

Dated

.

■.

.

Due September 1,1982

September 1, 1957

Price

recogobligation to the long
time customer, and reserve funds
for projects of broad benefit to
the community.
nize

Company

Refunding Mortgage Bonds, Series J, Due 1982

greater

ever

101.085% and accrued interest

'

the

The

/

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

such

Dilemma of the Credit Man
the industrial credit
man is in a dilemma. He also is
impelled to balance the financial
needs of his customers against the
Likewise,

'.-r

; -j

HALSEY, STUART A CO. INC.

AMERICAN SECURITIES CORPORATION * A. G. BECKER &. CO,
i
■

This
Gf balance is often obscured

needs
area

of his

own

company.

by pressures which insist that the
satisfying of the customer's every
need is all important. Essentially

HALLGARTEN A CO.
r

j

a

matter

expediency

of

4.

.

of

payment

or

A CO.

*»>:

DICK & MERLE-SMITH
v

L. F* ROTHSCHILD A CO.

SCHOELLKOPF, HUTTON A POMEROY, INC.
GREGORY A SONS

BAXTER & COMPANY

SHEARSON, HAMMILL A CO.

STROUD A COMPANY
INCORPORATED

accepting

NEW YORK

STERN

HANSEATIC CORPORATION

BROTHERS A CO.

COURTS A CO.

BAKER, JtfEEKS A CO.

WM. E. POLLOCK A CO., INC.

SHELBY CULLOM DAVIS A CO.

„„ttlements after maturitv dates of

impairment in the affairs of the

FAHNESTOCK A CO,
McDonnell a co.

credit granting company and may

hffhrd
„

the

the
.

customer

customer
m

,

a

a

crutch

per-

,,

form a disservice. Today there are

-August 28, 1957

IRA HAUPT A CO.
putnam a co.

it A'

'

_lri

rather than principle and

terms

BACHE

INCORPORATED

! »R. W. PRESSPRICH A CO,

SALOMON BROS. A HUT2LER
'

thi

graduate School of Credit and Financial which, in the long rUH, will
Management,

United

of everything to

more

invoices can often bring about an

money

the

a

centers, housing, highways, banking and industrial facilities,
schools and churches — in short,

settlements alter maturity aates ot

greatest number.

in

need great character
and purpose in the men who di¬
rect the use of both, public and
private funds.
/
we

growth—arid, we "just have to
more automobiles, shopping

»iean the most

to the

avoided

be

to

States,

have"

planned reactions often bring unh^ppy results. Broadening of

use

is

frequent references to plan¬

divided attitude on stewardship munity." As we find it unwise to and stewardship is commensurate
embrace
casual sales or spotty
_0n the one hand we find govand Individuals, to want eminent engaged in the role of production, so We find it unwise to with the manner in which this re¬
more and more* This nataral spending a substantial part of the endorse casual employment or sponsibility is discharged.

character, or that the
spending of money through something like gambling gives it unfavorable character, but rather I
gainful

greatness and then stumbled on
the inability to manage its pros¬
perity. If this historical precedent

the

counting or audit of his money, judgment compels him to
and praised and

.

desire for betterment is essential

to

and

master's

•

achieve

to

money. Since time began, country
after country has risen to a pin¬
nacle- of military and economic

which characterize much of Amer¬

The most prominent role in the

n

*

r

compelled to establish and ad-

administer our finan¬
with character, we

our': broadened
horizons; *•••,-•..
'»••
•
The history of the nations is a

selfish interest, and

minister our terms of payment in ican

Recln mTLraSe To
* h
C°ndem"S °vertradin*
mSfSk*?
Boom condLtions prompt all of
nrnLivh/ ^
g 3°urney-- us — government, federal, state
fiiod
called X three busin®s^ Purposes, and local—industry, utilities, inassociates nnd
stitutions
inU«T
he

^ T

affairs

we

constant credit flows of this land face a
a high cost in the 1930's. Are we, more rigid fashion. The laxness in volume
to assure continuity of great
challenge.
It is to help
jn today's money market, finding this area has proven costly to both
operations and the ultimate re¬ fashion the history of our land, to
too many reasons to violate this buyer and seller.
covery of the facility investment.
ardship lesson

T

Kt

our own

to increase responsibili¬

As

cial

ing, selection, customer develop¬
ment and continuing relationships.
in the interest of the customer, we Large scale capital investments,
In

*The principle?

bv

made

serve

ties.

.

,-

our

activities have served to broaden

■

>.

man.

involving

the

of payment. To be sure, credit has been available to certain em¬
Enterprise
terms are an assist to merchandis- pire builders, whose objective has
System. We sources of credit, namely, banking, ing. However, the abuse of terms been to racketeer, dissipate and
,have to su- insurance, government, industrial of payment is a price concession liquidate.
Our
free a enterprise
perimpose the1 and lately pension funds. How- whether chronic or occasional and; system was 'built and! is main¬
practical upon ever, altboug
he field is broad results in a loss of 'profit. In addi- tained, not by liquidations, but b>
theoretical. Iri and our interest varies widely, the tion to reducing the seller's op- : men of foresight arid; ambition
doing so, we* common effect of money manage- portunity for added investment in who want to build a business, de¬
are tending to
ment joins us together at both the inventory or facilities, the abuse velop products, establish a list of
resolve an philosophical and moral level.
of terms is a disservice to the cus- satisfied,
continuing
customers
e ver present
In our daily business life we tomer who is encouraged, in turn, and provide income in the com
problem of must honestly face the fact that to extend too much credit, over- munity.
Without such
demon¬
the educator stewardship
has a very selfish trade, and lean upon suppliers to' strated purpose, few applicants
and the busi- aspect. Those in commercial bank- the point where he is unable to can qualify for credit accommo¬
nessman. The
ing know that stewardship by the perfect necessary credit arrange- dation in this economy.
educator has lender must meet comparable ments, through proper channels,
In describing the responsibility
of the Financial Manager, I have
"'Tell us what we stewardship on the part of the when heeded.
management is complete unless it
comprehends the most* prominent

'

■

with

man,

;

•

alone

not

cerned with all activities contrib¬

.

s?ld i? business,

concerned,

The lending

Lack of basic information leads to
examine the broad and appraise the manner in which stewardshiP
economic problems affecting the we invest our "talents."
An area where each of us can faulty conclusions which are a
general welfare of the country, '* First of all, we must recognize make a contribution to improved disservice to both borrower and
we are compelled to define more
that or individual interests and financial stability and profits, and lender, and frequently to the com¬
:
\
'
and more of experiences vary widely. Addi- certainly we are qualified to do so, munity at large.
;
the principles tionally, no discussion of
Additionally, financial support
money is in .the administration of terms

Howard E. Isham

man¬

industry

producing goods and services at a
profit; they are truly substantial
members of the community, con¬

as we

loftheFree

and

uting to the well-being of the
public. The activities of today's
ness enterprises, where the return
or
the manager of the
budget, corporate leaders far transcend
falls short of the prevailing in¬ must first be a
Histori¬
professional, a con¬ yesterday's limitations.
terest rate to say nothing of a stant
performer with high stand¬ cally, matters pertaining to lib¬
return
commensurate
with
the ards and high
objectives. He must erty and authority have been the
risk. These companies must re¬ first be
possessed of all the facts concern of religious and political
evaluate the policies and practices
necessary to make the proper, in¬ leaders and institutions and iiot

substantial

resulting from abuse of credit principles and
neglect of productive planning. Claims the moral force in
the mattagement of money is the "integrity of
money mana¬
gers." Charges financial managers with having community

Today,

ingenuity

power

r;

.

neglect of produc¬
planning. Today, there are

tive

spotty income. As American

we

ing conservative money manage¬ have contributed
substantially to
ment.
Although we admit the our physical standards, so it has
complexity of the job of govern¬ improved' our total standards of
ment stewardship, we cannot
deny living.
The corporate manage¬
its impact on our position as fi¬ ments of successful
ennterprises

prompted

minimum

other,

find the Federal Reserve practic¬

centered in his

consequences

.

nation's income—on the

poor

terest. The failure of this steward

of the

warns

or

comment

the return

Me calls for financial stewardship
of both lenders and borrowers, mortgage bankers,

the .part

stewards

complishment

"cultivate

we

the morality of money."
on

of

administration

talent in the ground and his stew¬

history of the

a

in the

In the parable, you recall that

.

Vice-President and Treasurer
United States Steel Corporation

Noting that "the history of the nation is

illustrations

many

practice

terms of payment.

9

H. HENTZ A CO.

van alstyne, noel a co.

•A

V

T^ie Commercial and Financial Chronicle

(902)

10

TALBOTT*

By ,PHILIP M.

United States

President, Chamber of Commerce of the

Businessmen's Association head presents

Eisenhower
with having a "deceptive" philosophy of the Federal Govern¬
ment's responsibilities when he "implied . . . that if state
and local governments did not fully meet the presumed Gov¬
"big government" trend, and charges President

needs

ernmental

demands of their people, there

or

was

hance
mental

Mr. Talbott questions assumptions on

.

*

,

P

than

h-

in

and

continue

to

principle

,

the

spirit.

laud

sent

of

time

same

actions

take

is

in

who

that"

1

the needs of the people, and yet will weaken its strength. - '
;
not become tyrannical in its use
^b;s jeads me t0 a distinction,
of power.
We of the National between problems or issues which

much

ofThe

principle
mindole of federalism, whereby
governmental power over the peo-

W ** 6

probof
fed¬

lems

o/^eraUsm

U

Constitution between the national

to
well

expect

we

.have

a

levels ux government, is
of guveunutm 10

Slate
state

ana
and

levels

organized,

the proper means

forthright, and

general interest
gojitiax iiiioio&i.

Indeed,
tnr„ ef

cials

'■

When
efforts

"pmijp

Talbott

M.

'

who

represent

and state

ernors

primarily

cuss

Commission and

our

'

losophy with respect to areas and
"problems
of
intergovernmental
relations.
In
this
connection, I

specific

refer

to

and

.will

our

areas

efforts

The

of

the

.

Kestnbaum

,

were, historic
research
and

.

and

The

notable.

the

numerous

Generally speaking,

we

J

are

conclusive

or

to

power, stands as. a
tlie creative genius

r'nqtqrit

«rnwfh nf iho

cmuLnLnt Lp

th«

if deais

with the moblems

.government

Congressional

eLnmittles ^re overtoal^ w"to
uemT

with most of its specific
recommendations, there has been
formal

mainstay

+_

nrnhlem?

their

onlwe

home

at

t0' solve tilen Piooiem^ at nome,

i

111

character

subjects

power

are

•

for

the

ments.

,

,

nauou

inslsted by the President and the

necessarily

exercise

of the national govern-

Defense of the nation,,. 011

that

«enerai

in

A

Administration in geneial that
such problems, although they may
Pe. nationwide 111 .pj1.ar?£ ' cer"
111 y-werf n0 wl[hin the proper.^
exerclse
P°Jfer byk*be national
g°Yernment- Neverthelessy-legis-

^h^dPtHmpnhfl8

ESP"fanf
distortion of
feet of this
power was

ef~

distinction

should

be

a

first

T1.

bearing

crowin

an

UnhP

action

.

label

urgcrt

Auvrden has"

q

become

?

rnn

ec 11 „-1 31

;

.

1S

r

-

...

.

.

national government was a

which

has

been

expounded

problem.

iems primarily state and locai in
character

grant
ency

is

in

seen

for

program

services.

in

.,

Advocated

it

program,

e«Pnr.H

the

iibrary

as

emerg¬

now
hP

vPar

Federal

rural
an

appears

in

Cer-

would

deny the
value which they have had in the
110

solution

Finally

them

the

prime evidellce of the lllabilit.V
Indeed' altho"gh tha Chamber
legislators to give adequate con- was greatly encouraged by the

Kestnbaum

S^Sn&H
NahonaT Chtmbef^dSS'

one

of

state

and

national

not

hP rnnrpivpd

SirDiiciv!
fedeialism

of

teriorated

a

A

the

have

Ho

de-

wherever
when

,

ovei vne yeais.

specific questions
the Kestnbaum Commission s
work, whici you sent
to me, I have prepared a formal

th

statement

satisfactory

with

them.

on

the

j

the

who will
intent of

Constitution

be^n d,Ps-■

oeransm nas been dis

L

fh

d

a

standincf

invitatinn

-frtr

ivir»

insertion

ir»t,o

the

record*
1 ec01 d

QnE

have.b£n
have been

P^wer

^

^

oetween the deceptive. It tacitly ignores the
5 iul.pe°:ile

_

.,

s™teT

years

^ent

which

of

,

"




•

super-salesmen

"

:.^^^^iot^:aivough:

primarilv

perspective. The sewage
plant aid program in
municipalities and the rural lib¬
treatment

services program mentioned

rary

earlier constitute

examples of such
by special in¬

programs advanced
terest groups.

For although deal¬

with problems nationwide in

character, they should not be con¬
sidered problems for the national
government, v •*"- •
; ■
"f. Second, no new grant programs
should be undertaken by the Fed¬
eral

Government, including school

construction,, unless there is an
imperative national emergency. Or
it can be conclusively demonstrated
that

they fall within the powers

government as set

forth in the Constitution.

where' new; grant pro¬
undertaken,, terminal
dates
and
specific
expenditure
ceiling amounts should be estab¬

Third,

grams

are

Vague and highly elastic
be avoided.

lished.

formulae should

Fourth, existing grant programs
given a comprehensive

should be

order to
still
exists, whether the problem dealt
with continues to be one for the

review

national
the

in

periodically

determine

the need

whether

government, and whether
of the grant is still a

level

proper one.

'The

establishment of

fixed terminal dates for

an

automatic

state

such ph>"

would do much to

grams

are

accomplish

tional purpose,
that the funds
overall

require

review.

funds

to

granted to a
a truly na¬

recommende

it is

transferred t
government an

be

state

specific department. Tnu ,
funds which might, for exampi »
a

ordinarily flow to land grant c
leges or some other specific °P
ation within the state, would f
through

normal

the

own

uous

sanoing

Tiio

resource-

rentivp

of

thI? ^
efrPn«ft con?P.13in-

tv,Q+stren^1th and

SStSKL° nSld^ the.mast
ature of grants-in-

aid
tu.

.

.

relations

con-

cerned with selling the necessity
for Federal subsidy rather than
with rolling up their sleeves and
gettinS the job done with their

feel
govern-''tE'"Ifm°St diatU^ing sbo.uld-.no? be fulfilled immedi- I feel
I
sidered^a par?3"/a'nerft're pro" ™

cSS

Hou«e

mittee.

views,

"

klld2et J*

orr1.

wrought by other than mav be in excels of either the
Constitutional amendment.
ability of the private economv™
rather tban read it.
ability of the private economy or
rwfoirhi
National power has increased at governmental action to fulfill
^ rLthereiSnfingff the expense of the states with them. Equally, it ignores the time
+w
+ih-PreSe£- 1(£n
seri°us consequences.: State and factor in the fulfillment of su^h
^ hS
^1S naf10r! bas ir>z e local incentive has di^1 in5Tn desires. Everything cannot be and
for

Their

possible.

given, should be evaluated

a standing invitation tor the
, ,
.
. .
v UU1C,I1!»' oiate funding operations of the st
national government: to intervene and lo?al offlcials, in many ca-es,
government.
and' furthermore, that it would £vhen faced with tough problems,
Improvement
of ln^er|,0a-roi
Probably do so.
.
h™ visualized their roles as mental

r^bef yeaJf' Jn a ' fPr
a PbllosoPhy is based upon
^ changes lp the questionable assumptions and is

If

y°"

of

anyone

has

Committee,

LwHL":er.e,y pr?se"t this t0

hardly

founders

regard,ng

written

was

_

is

.
1 have P°lntod out that grantsln"a£d hav.e a strong tendency to
weaken initiative in the states and
bave. detracted from the state and
lofal governments incentive to
solve their own problems
State

Federal aid to

in proper

the

agreement; There was amimnlied
tional government rather than to conclusion that if state and local
^ ihem t0 proper state land governments did not fully meet
local treatment simply aggravates the presumed governmental needs
this situation.
or demands of their peoole, there

of the

Inquiries of only in¬
terested parties should be avoided

not to

aMempted^folutio^Tn The^naThere

vears

the

for

As

which

over

Ct wZld aleiftat'afon^wllh
S benefitf there have been

sas it

Sonld
tStSS
fnsuwrehibiStetionofThese nartJ

hplipvp that it

proposal for
Such in¬

devoid

so-called

When

has-been" \ake7 T^imnlemen"

be

education.

„;Pit

of cooperative federalism,
tainly

Charses D" presidcnt's

gov¬

is made.

of the national

Another prime example of these
abortive attempts by the national

Quarters recently a"d has lished and itrcosts hrve almost
received wide publicity. This doubled This creeDine inva^ion
the01^ assumes that jurisdiction f state* and lorarno^r JbnidH
oi the natioDal government can be be curtailed' and rcvericrl who!
advanced whenever there ap- ever oossible
reversed wher"
pears to be a void m the fulfill- ev!,r
ment of governmental functions
Grants-in-aid many times have
regardless of the character of the been a useful device in a sys.em

^=L?

of the Commission's

possi-

'

* government to delve into prob-

lnJf. ^ 1 .^ukmg
wblch is closely allied with those
wh9 ,would, make all nationwide
problems the concern of the na-*
ti(?nal government. It is a theory
a

need for

no
fonnl
national' ing

noted most recently in

power

cress as

agree

every one

a

?£a?difff^
^every^

would

Chamber

has been

naUonanrtheatteS^^^

philosophy of the reP°rt»7of
and, although I feel certain that
National

of

w-fh +h

lying

on

•

a

,

wa<?"

understand-' £f

of its writers.

in accord with most of the under-

no

tvne«"

Constitution. Direct specifiea- consideration

hallmark

re-

able and cooperative federal sys-

the

twn

nation have had

governmental

future efforts to maintain a work-

tem:

thece

as

its realm of authority. Such
^
construction of municipal* surveys should not take the form
treatment nlants
Several1 which was used by the
national
sewaSe treatment plants, several
^ .muniCipalities, failing, government in determiningthe

unction between these two DPe^t()ok them to Congress with a deof activities. Most certainly, not.; -nA fnr «rnnt« in aid
Tt
an problems which are nation- ™and
?£ S
~j? i
^1?

ervation to the states of all other

,

,

this Commission prowill, prove
valuable
^

duced

between

general

ing

a -

that

ports

hv

in the deliberations
by the" people' oFttirCong^^
through the Constitution to the so-called ''demands" for increased
national government and the res- action
by the central government:
tion

the
to probe the depth
of
federalism
problems

the

this

within our

Commission
of

tinetinn

This was pointed out.extremely
in the"case of erants-in-aid
I,
the case of grants m aia

the other hand, is properly a re- a
statement
by
Congressman
sponsibility of the national gov- Johansen on the floor of the House
,nhnn.pnnn thpfmnrnfthAHouw
eminent. School policy and the i^nHnresentolves
He dS nted
operation of the educational systern present problems which are; ®
nationwide in character, but are
Micmgan
av
eglected o^
not proper subjects of interference ^e111®r^
IfSfi?^Iby the national government: Such
^ J

inter-

to

problems
fitting.

seems

as

functional

reactions

governmental
thera

desire

of

the

persuasion and salesmanship which
can
be
exercised by a Federal
bureaucracy interested in expand¬

-

governmental power set forth in

evaluation of
the
Kestnbaum
general phi-

our

of

report

laeir

ad

will

legislators, should

be consulted before

building the strong character of
our nation We know conclusively
that the diffusion of political and
governmental power is the.esfence of liberty. We sincerely
believe in the preservation, not
only in form, but in substance, of
the dispersion and diffusion of

Therefore, I would like to dis.the

This, undoubtedly,

the deep

ual freedom

been completed.

have

?vs-

great extent from

since its problem
yet
its
solution
falls
Recognition of the in- within the province of the inherent tendency of political-power,
dividual, the family, local private
to grow, at the expense of individgroups or state and local govern-

_

these

his-

federal

a

or

in

programs

lessen

interest of the states such

11

beginning.

conclu-

Sions

unique

our

proper

of

tailed findings
and

a

jnahilitv

men"

First, it seems imperative that
states, and particularly those offi¬

representing special interests.

n

ing of the nature of the govern- ment.* For examole juvenile" de-t
mental power which the people,
linquency may be 'a nationwide

de¬

more

our

;

a

The tendency
at the national

inability 01 lack ot desiredis-j .
by
policy-makers to make a

wide

stems from

like to submit

*

made

stems to

fh

tern workable.

I would

year.

have

we

h4vina

.

nower

f celll/ailze'Powei at tne national
levej

toiy ot having made a leaeiai sys-

b y

the end of this
*

for pursuing the
,

comprehen-

position

.

to rentralize

territoriallv bv uu
territorially uy our

nle is divided
pie is aiviaea

and

eralism

merely nationwide.

groups

pressure

guide'

or

government

grant

to

P°fdly mS1St®fd ZeHeent ren
grant-in-aid
1131 133
tSSe" are- quiries should
well-organized'

rules

this

time

them bv

a

First, I would like to say that
the Chamber, through its committee
and
departmental struc-

pre"

on

later

a

the adverse
impact of this type of assistance
upon the states.

m-

m°st cases the people who sup-

views

at

certain

are

national

do

na-

«un

subject

priml
I ind

as

expect to

detailed

more

ministering

•

.

we

lines which I would like to
tion now. Adherence to

"He

at

and

the

upon

Qi,a«

traditional-.1113

government

make

and

Although,

earlier,

there

M months about

.

th!

considering

needs

administration is of

whole

the

been said

has
.

t

presumabiy

cannot

We

this

dea,

.

its

cated

c,osest to them

.

h

t

eople

th

for

be

total

importance.

pjonal govyernment for the pro-,
77* Jf,
vlsl0.n of cel2nL ,yDh thle
S6ThC^'»re Sv nr^ise in

embodied in our Constitution. must be supported both in
form

7fet

|

Federal-

lorm

mere

P

A

ism, as

"minimum first step in

of

the "demands" which the "People"

the

to

should

.

achieved

be

„

centra
government because ot political fortunes
or consequences or a lack of willingness to solve their own prob-

in more

and

taxes,

.

praVvaWoVtf"JMSSlMS
preservation or our ieaeiaA system

.

possibly other taxes, to the states as a
decentralizing government and permit¬
ting states to undertake local responsibility for Federal pro¬
grams.
Proposes guide lines to allocate local, state and
Federal responsibility.
gift

j.

S

of

Since there is a need for th^
grant-in-aid device, the character

through encourageIf these
individuals manifest a ment_ patience) and faith in the
tendency to push the solution ,of
philosophy that that government
.

.-i

problems

transfering all Federal estate and

advocates

Chamber

the

for the- national

invitation

.

state and local leaders.

as

T n

rush

respons
bilities in proper
perspective

cern to state and local jurisdxtions. A lasting solution can only

equally true of national, as

well

a

Government to inter¬
which this
is said to be based by pointing out that the people's desires
may be in excess of private or Governmental ability to fulfill
them, and that not all needs can be met at one time. Declares

standing

who

states'

of con-

problem areas primarily

possible,

wherever

This is

.

vene.

levels

local

The

the states
get their shares of Federal
monies
distorts
the
judgment of thnS

policy must be well endowed
the philosophical tenets of
federalism.
Their prevailing disposition must be to foster and enwith

to reverse

a program

while.

the difficulties in state conscitutions,- state legislation, and administrative actions.
However,
the wholesome cure to such probthe
solution
of
govern- lems is not reached by a constant
problems at the state and threat of Federal intervention into

cute

Woodward & Lothrop, Washington, D. C.

Senior Vice-President,

1957

conm

central government.

Reversing*Big Government' Trend

29

which,-from the state and ]nMi
ctanrlnninf
u<-dl
standpoint,
seem
more
WnHh

Proper

problems upon the governmental action
It seems im- priorities must be established
perative to me that if we are to
Now all of this is not to say
make gains in this field, political that the weaknesses of the states
leaders who formulate and exe- are not recognized. We recognize

state and local

Thursday, August

...

',,

merits noting.
merits ^nHna The'use" of

Proems by' Coto

in

our

jea

requires forthright a
state and local govern1^'

system
by
as

_

well

as

national go
respects, t -£ P-

the

ment. In many

shift from the state
to

the

been

national

because

government.^,

of

deficiences.

equipped

to

The need for

has

,

and local

state and
States ®

meet modern
Constitutional l

long"been recognized in

Qtn+PC

vtinnlarlV

With f^Sp

states, particularly with ^
the form and structure o.

.

te

metrop^,
private*irdUatf^Xd caus'SSnplS oXpTograms gXToSems of need o
in critical,
are^s are

/
\

Number 5668

Volume 186

The Commercial and Financial Chronicle

...

(903)
The .drift of people to the aid and adopted a participation
and the development of formula
involving a
T„
.Vofj
In
units of government stress larger national grant.
1948,

tion.

tions

suburbs
-new

share with

such as the county.
Certainly the revenue system of

the

ernments

is

-

com-

-necessity..the last[three amendments,.

prime

a

a

Con-

exempt

from„ tality to state and

are

numerous

'^lr /J"

-classify
ciassuy

tional

fherebv nrooerErects
bv

the

gmaU

or

chaln

Branch

.of

is

There

strong

must

there

be

,

by

sources

and

their

respon-

Sibilities.

The

capability
Cdpaumiy

We

.velop.

of
oi

the
ine

of

nntionsl
xiduonai

states
bidles

^

as

a

state governments.

rhamber

gift

efforts

minimum,

be

may

It is also sug¬

readily

In

also

feels

-teels-

might

recent

ments

transfer¬

be

■

that

.

,

.

.*

a

building first of
financial structure

adequate

?■

.

p

.

,

state

.

to

.

extend

national

-a

states

tive

have

lost

area

govern-

national

tion

which

there

is

to

management

to

the field
relations.

of

labor-

no

caiTy

justification for mtervenby the central government.

This

has

-

time, we should recognize that extension of the law
to several million more employ-

on

reevaluation of fiscal

a.

nrnhipm?

.

.

^

,,

ex¬

Obviously, additional mvestigators would have to be hired by

Federal

courts that, when
enacts
legislation,
it

of

wiirtVif

+v»rvtr

tend to the full reach of national-national pre-emption

government

government's

nvfifiio

Another

;

step which might be
immediately woqjd be to

of civil dethe- fense miust be avoided.

under

power

*

•

,

_

(Special to The i

fourth, problems, the solutions
10^.which are .developed by the
"a1:ional g0Y^r?1"?e1i ', sh(Juld be
only those which fall clearly with-

.

inancial

Chronicle)

CHICAGO, -111.—William
has

cas

G

A
12o

become

associated

Salle

Street

^ prescribed power Pt tne bers of the New York
onat gmernment in the Con- Avest stock Exchanges.
was

•

>

E. Lii>with

Becker & Co. Incorporated,

South La

mem-

and M;d_
Mr. Lucas

previously with McDonnell

&

Co. and in the

past was a partner
in Baxter, Williams & Co.

A. M. Kidder Adds

,

Which they might create.

,

A. 6. Becker & Co.

to

,,

,

strengthenina

^eaeiai system,

William E. Lucas Willi

mH

of taxation

sources

of

svstem

.

to
w

governments

own

interest

Federal

our

„

.

the

m

ample, in the field of natural re¬
lified. Further, the National Labor
Fifth, the grant-in-aid device,
In civil defense,, both the nasources,
the National
Chamber
believes that the primary respon¬ Management Relations Act of tional and state governments and although recognized as a useful
the
most
comprehensive their local subdivisions must ex- tool in a system of cooperative
sibility
for
pollution
control, 1947,
labor statute of national govern- ercise a
drainage, water supply and rejoint responsibility. And Federalism, should be used sparcreation belongs to the states, or ment, has been interpreted to ex--in order to achieve effectiveness,!The tendency of the nasubdivisions

thorough

sources

are

stitution. i nis means tne avoidCongress
ance
broad, liberal mterpretapre-empts the field so that state the national government to police
^.e elastic clause of
laws 011 the same subject are nul- the newly-covered establishments. Article I, Section 8.

there
there are manv
are
many
current programs which could be

i/-.l-i

a

and
the restoration of adequate >reve-

their responsibilities,

*

the

as-

local

their

ieave them.

sound

the

m

and

ilnmUc

resoonsibilities
responsibilities,

the

weak,

are

Eighth, there must be

belief automatirallv carries with

resulted in large part from the. ees would add materially to the ln'
questionable theory developed by.cost of administering the law.

For

ture which

a oenei automatically carries wun
jt a predisposition to allow the

sumption of proper state and local

turned back to the states.

also

searching and strengthen those
parts of their governmental struc-

/ ri
must actively seeK to
make it a workable principle. Such

thm

/I7 i s;afe0tna11

.

^Proposals

state

years,

ity to act in

an

peridt "the" restoratfonT and"

Each

i,
,
and local govern—
do some soul-

♦

must

,

eiven

the legislators of that state?

certain

immediately

.

government much of their author- .At the same

the

people

.

better judge of the legisla-

a

needed in

those functions.

able.
With

the

Constitution.

the

must play a strong and vital role
within the spheres of responsibility \vliich have been carved out
for them.
-

in.

initiated to help restore the states regulations
to these employees
to their proper role in
handling'.merely represent another legisla-

gested that study and considera¬
tion be given to other tax sources
which

ls

lahor-ininape-

completely to the

over

directly from

through

ments

their

'tomer enters the store and deL

4n me lieia ol laooi-management relations, the National

to Cin
to de-

that

recommend

and estate taxation

be turned

the
ine

fov
uy

has severely limited

government
the
ine

pre-emption

sources
suuiceb

revenue

derive

mini-

a

.

the

the states.
The
given the where-

by
be

must

states

that
abdication of

government

-assumption

•

, ,

evidence

an

certain-revenue

national

..;•'■

..

periodic review of

a

S'rant programs constitute

stress.

ac-

-

national

the

to

be

adequate

,

"

tive

detail..

niimov_

-

of Governors and the Execu-

government.

want

government

powers

nat onol

government. -Whether these firms
lar-e

more

»

_

J™,8 r|"ulaUon

I

certain

wu'
TV***
'
ism,-both the states and ^eral- T
the naSeventh, state

retSfand serviceTstah0
leiaii ana sei\ice estab-

tors—and

ceilings, and

subjects in

In rsitmmary,

by

Second,. there must be a strong nue sources to the states unless
nancial. support of Old Age As- .ci^es whether or not to make a
f'nrf tn Hor»«n-itvciiiTc» tho
some
oivr**
sistance.' ,
:
, ; :
V,•/.;■ Purchase C^ssifviVie these Xes effo^ to decentralize the numer- some means are nvodnppH +r» give
means
produced to
Our recommendations would ininterstate ^ nnera«L« wmfif? S ous : powers and responsibilities the states the ability to meet their
volve
no
reductions
in
federal
Wa^
which have been assumed by the'own problems, it is little more
grants-in-aid for those now gethei^ iTw^
national government at the ex- than an academic exercise to talk
ting Old Age Assistance, whether
bi KnncIc V^v
Anri
Pense of state and local govern- of transferring functions and reor
not they are receiving OASI
k110w that is nof £10
ments through other than the for- sponsibilities.
<■;
;
:V.
benefits in
addition.
Thus, our "
mal means prescribed by the ConAnd-finally, there are certain
proposal would shift no part of .••Currently, 22 states and the Dis»- stitution for altering the division asPects of current national prot,he present financial*; burden of A^ict of Columbia have some form
governmental power contained 8rams in the field of natural rethc national government to the .<>U minimum. wage legislation on in it*
♦
"
sources, social security and welstates It would merely leave to
J£*£ * " beThird, our political leaders must
the. states full responsibility ol
imbued with the belief in FedCould beUndertaken immlwXS
tor» the future needy aged. r.
>
^.eralism and must activelv seelc to
^
mmediately

ly being undertaken by the new
special committee of the-Confer*ence

aid administration should
companied

aUier ndlculous 10

S

sssssxs tsxs ssss assvsrxs ata isgsxest
-

Sixth, any system-of grant-in-

govern-

perform their proper roles under

pio-

rather'ridiculouVto

seems

1 S

,are

local

so that they might better

other

this^It

states.

In 1956, Congress amended Title I
ooroim
plete revamping. Solution of the again
increasing
the
problem of determining the proper share by $4 per recipient and the
allocation of revenue sources be- state requirement by only $1.
tween the national and state gov-, •.« shoutabe noted that prior to
of the states need

many

been

though, there

additional partici-

no

pation required from

have

—

«0veruge.u0f the Iaw' CurrentlJV ments

II

.

(Special to The Financial Chronicle)

CLEARWATER, Fla.

—

1

William

L. Pollard. is now connected with

-tional government to hold out to A. M. Kidder &

Co., Inc.,

300

ooutn. Garden Avenue.

the c+o+ds nrnmiooo of broad rtvnntd
+Vio states promises nf Vim^ri grants

S.1v ^3^u"
These constitute
r^s^Jt, in only the re- the Specjfic ,areas
providing.iJaUyely smalMreaxrf purely in-. National chamber

but a few of of money to solve problems which
Now R. J. Colbert Co,
in which the *are primarily state and local in
legislation
thinks some
fn ^-.1. Qfrpntffu '
LEXINGTON, Ky.~The firm
.grants for the construction of sew- trastate matters is there any labor -.action might be started in the -Ghaiactec tends to sap the stiength name of Colbert and
Maury, Bank
age treatment plants, under Pub- law Jurisdiction 1<eft
to.tl^ states, -immediate future in order to help and initiative of our state and ,0f Commerce Building,'has been
,-Iie Law 660 of the 84th Congress.
What is urgently needed, in our bring about a restoration of vi- -local governments.
■
'
*
changed to R. J. Colbert & Co.
»
.Similarly* grants under Section 4 opinion, is a clearly-stated assign-..
<s
^
•
»
of the Clarke-McNary Act, pro- of authority to the states, so that ;
-viding for reforestation aid, are maximum freedom may be exer-.
not necessary.' State and private
cised by the states to establish and
nurseries are fully capable of pro- maintain a body of effective labor
1 ducing : and - distributing
forest laws. Congress should enact legis- .
seeds and plants for the purposes lation to provide that a Congres-.
r
provided in the Act.
sional Act shall not supersede
taken

■

the

rescind

tiop. As

a

$3,555,000

■

laws

state

Another effort to aid the decen-

tralization of governmental power r unless
should
be
directed
at
national stated.
-welfare

when

.

can

national' tions

the

turn over to each

on

-

•

curity Act

March

of the

"...

many

that

at

persons

no

the

of

need.

The

Congress' over-all
permanent

one

known

a

labor dis¬

To be

citizens

of

in

".

as

.

.

that

my

State,

smaller.
Until

The'

need

for

national

would

they

existent.

gradually diminish
were
virtually non;

Congress, however, has not adnered to

message

MATURITIES AND YIELDS
(accrued dividends




to

be added)

1958

4.75%

1960

5.00%

1962

5.15%

1959

4.90

1961

5.10

1963-72

5.25

of

Issuance and sale

•

*

:
There are - also -some obserya-

tions I would like to make with
respect to minimum -wage legislation.
The Federal Wage and
r

The

of these Certificates, are .subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any State in which this announcement is circulatedfrom only '
of the Undersigned and other dealers as may lawfully offer these securities in such State.

such

a

law establishes minimum
and overtime regulations
for workers, engaged- -in, or producing goods for, interstate comHour

wage

.

HALSEY, STUART & CO.

-

DICK A

MERLE-SMITH

FREEMAN

&

R. W. PRESSPRICH

COMPANY

WM. E, POLLOCK & CO., INC.

&

August 27,. 1957.

INC.

CO.!

NEW YORK

,

BAXTER & COMPANY

HANSEATIC CORPORATION

SHEARSON, HAMMILL & CO.

McMASTER HUTCHINSON

t

the original concept. In
Since the law s inception, em^946, it abandoned the original • plovees of retaib andservice es-^
hatching formula for grants-in- tablishments—strictly-local opera;■

.

.

that the States-

of inn

are ^ree

was

progressively become smaller and
grants

*

-

cer-

to assert jurisdiction \

clear by legislat

permanent

expanded to
virtually universal coverage of all
Working, the relief program, Title
*
(Old- Age Assistance), would

:

Where the National Board

refused

on

Program, OASI,

$237,000 annually September 16, 1958 to .1972, inclusive

guaranteed unconditionally as to payment of the par value and dividends by endorsement
by The New York Central Railroad Company
»
.

"

the

\

and safety of

Wance°BenAemS"con^STS -the ground that.it would not '
told by spokesmen SX PrS
f^f' of Uie art:
atei the policies
dent's
Committee
Economic
?r
as

mature

Whether the governor of a

.

specifically

has

Security that

To

January 11.

program was a

now

Equipment Trust Certificates
(Philadelphia Plan)

s

the State from' dealing with
that dispute.
This was covered.

in

dire

5%
-

ing

by

age, and
second part

to

tainly nothing in the Federal law
should have the effect of prevent-

K>r

themselves

support

Equipment Trust of 1957

by

26,

danger, the health

time—
longer

working, because of

Third

state
Eisen-

pute is endangering, or will en¬

was

existing

President

State determines that

Social Se¬

.aWi*^omoai"oe
able

to

New York Central Railroad

-

Committee.

passed in 1935, it
designed to deal with a large

namely,

subject,

expressly

subject-of

1954,
Alexander Smith,

•

When Title I

problem

is

letter
dated
Senator H.
a member of the
Senate Labor and Public Welfare

ing Old Age Assistance to all new
aged persons seeking relief in the ;
future. ;The national government'
;under' this proposal would cOntinue grants-in-aid only for those
persons now receiving Old Age
Assistance.

the

which
made,

powers

.statethe responsibility for provid--bower

was

same

security type;
Further, we wish to call atten-*
For example, the time 4 tion to' two specific recommenda-

arrived

government

...

the

intent

social

and

programs.

,has

on

such

;;

& CO. f

The Commercial and

(904)

12

*4.

.

foiind it unnecessary to consider make them a 'line, of' commeiw
whether the relation between du
|itMn4the meaning of the Clayton
Pont and General Motors; involvThe relevant market of
ing not only du Pont's stockholdr
"ii„P n,
ings, - but
also
allegedly., .close commerce" determined, still YP
personal and operating ties, trans- maining was the Court's fashion*
gressed Sherman Act Segtipn 1, ing of the standard for measuring
Nor did the court detail required competitive "effects within that
Closely related to thi
pendent* actiofty economic1 Analysis relief, but — instead — remanded market

inimical to independent pricing
.v..
policies, price flexibility and the
'
^dispersion J bf market power." 22
And the court went on, "certainly
to theeXterit that" h -reduction in
the number of significant firms
Y
;
reduces the incentive to reap
YYa snortrterm advantage by inde"

Mergeis and Acquisitions—
A Government Lawyei's Views
'

By ROBERT A.

-

BICKS*^

First Assistant, Antitrust Division,

-

Department of

; ■

justice

Though I rest assured these
phrases will be much used, by
future Section 7 plaintiffs, let me
caution agaiirb
their controlling
significance when ripped from the
context of this case.
For sugar
,

marketing, and therefore, in effeet, entry into; business of the
sugar refining and marketing, is
subject to "extensive regulation"
by the Federal Government.
.

Sugar Entry Is licensed
This factor the cpiirt stressed,
Thus, the court emphasized thqt
"the evidence indicates: that np
.

•

new

refiners

SUgar

be>

can

to focus dn' twvo
(General
Motors-du
Pont i and the'New
'

same

1

an-

eliminate the effects of the acquisition offensive to the statute." 29
/General' Motors-du

A

*-

^

decided under Section 7 before its 1950 amendments,
with one exception, however, the
Court's grounds for decision apply
equally to the present statute,
An
acquisition would violate
0jd Section 7,30 you may recall,
if its effect might be (1) to sub¬
stantially lessen competition between the acquired and the acquiring company, (2) to restrain
commerce in any section or cOmmunity, or (3) tend to create a
rnnnnnnlv

in

line

anv

Catch Incipient

bear

Pont,

the. CoUrt held

of

eom-

thP

thi«

Activity

Treating the latter issue

jn mind, was

fW

the relevant
issue

under Section 7 to be, not
whether
the prohibited anticompetitive
ef¬

fects existed/at "the time the
stock
was acquired"33 but
whether

at

time

the

suit

of

there

is

a

rea¬

sonable

probability that the ac¬
quisition is likely to result in the
condemned restraints." 36
(Empha¬
sis'added). ; The argument thaf

;Section 7 applies "only to the

ae-

'quisitibn/of stock and not to
litsjibbidipg or subsequent use," 37
to • tht Court's view,
"misconceives
.

.

the objective toward which Secalleged that du Pont's ac- tionV7?is ; directed." 33 The aim of
the Clayton Act, as the Court
put
it, "was; primarily to arrest appre¬
hended/ consequences of intercorpo.rftte ^relationships before
those/ ;YelationShips could work

entered plaint

-

one,

'

,

c

decisions-east ott pr6Uems oft.de-

IutUAVll.

J^enas " w

mereer

.

thieir

0

evilv which

be at

may

or

ttoS^ed ^eas^ v concentration. with

no division, I emphasize, tracks al- any time after the acquisition, de¬
most word fo? word Section "7 pending on the cirexunstances of
the particular oase." 39 From this
followed today.
•., :

a fl.ndlnS of violation

!

..

*

.

.

tfining relevant market and meas- those competitive effects Section
uring .competitive injury under .7 proscribes.
Here the -court's
amended Section 7?
beginning point
was
that the
I.
'
i
.

~

for -whatever % relief task, it seems clear, was
would be "necessary and appro-' Court's decision as to when
priate in the public interest to Mandard may be applied.

tal Sugar ),2both quite

..

'

"

the; case,

npihidn ill American

least,
together

*

"

"

sugar retinerscan per. an- monopoly in any line of com
last 30 Amerce. Since the du Pont com-

market for the purposes, of ticipated'; that§ rl11,the
determining the competitiveref- years no new fiim^have

plan 1 is

Court's

concen-

detrimental to. compe-

is

tition." 23

.....

r;.

My

decisions

that' increased

indicated
tration

"

-

'

,

*

officer discusses pertinency of the pending -Continenlal Can-Hazel A tlas complaints and Clayton Act Section Vs
possible scope to judicial guidance offered in the two recent
American Crystal and GM-dtt Pont cases. According to Mr.
Bicks:- (1) The law is clear that the new Section 7 applies to
'all types of mergers:and acquisitions, vertical and conglom¬
erate as well as horizontal, which have the specified effects'
(2) .the Court held that the old Section 7 was not limited to
"horizontal" acquisitions;* (3) the Government can act if
there is a threat of restraint or monopoly even if the purchase
is solely for investment; and (4) retroactive application of
Section 7 has its real limitations. Analyzes the legal definition
of "interchangeable" products, and the broader concept of
^'market" as compared/ to the more narrow definition in the
GM^u Pont case, and applicability of Sherman Act, Section 2.
.

"

...

;

Antitrust

,

Financial.Chronicle... Thursday, August 29
1957

Viewed in

purpose followed the ruling that
"the Government may proceed at

Old and New Section 7

perspective, this de-

any time that; an acquisition may
'be said with reasonable probabil¬

ity to contain
lead

,

S„dfjpcfu*d *o| 255
from sugar beets' and flic.sale of

penetrate cburt's

further

tendencies -to

'Tiprizontal". . acquisitions,

weighing of, on the one catiea

a

hand, quality diHerences, against, .that is acquisitiom_by qoe-eom-

into Crystal's local selling area,'! 17

i^"JT of a comp

Against this market background

'''

to

a

a

threat that it

restraint

to create

tend

of

may

commerce

monopoly of
By way of
the : Court added that
when the purchase is
solely for investment," suit under
Section '7 may be brought "at any
time the stock is used to bring
about or in attempting to bring

or

a

line of commerce."

dictum,
| e] ven

•

"

a 80

qbout the substantial lessening of
competition;" 40
Remaining finally, then, was the
For the 1950 aipendquestion whether du Pont's acqui¬
of

eliminatedi-^'as
of commerce! is

refined

"5

snenr

For %<^he ^Mence* eleariw estah-

..

>,

*e whole industry,"lR.,j

changeability'between
cane sugar.

b'eet

and

-

Moving

companies

;

toer^
rele-.^tnth^°^a ^ak t
the^court noted, ^th^®aya™hand

status within the

markets,

court vant

^On,;;tb6',,pne,,hand,,;the

vailed
list

an /"historic

t

difference in

prices."»
prices." 9

the

On

hand, the court
"that in those cases

in which

determined effort has

a

n

rnmhimtinn

Frvstal

of

yrolon?if would h^^^
J™ Srri far^?t shai J of Sie
ri

n

other

emphasized

ritnrv

-

-

.

been made to market beet sugar,

0f

-

gales

in

the

these

market

excuse

..

ity

Court

noted

*• proscribes.
bit of history,

that

du

Pont's

the 1950_amendments put it,

chased

new Section 7 applies.to "all types
of mergers and acquisitions, ver-

a

sizable block of General

in
1917";41 that
"immediately after the acquisi¬
du Pont's influence growing
of it was
brought to bear
within General Motors to achieve

Motors'

stock

t'ca? and eong omerate as well as tion,
horizontal which have the speci- out

primacy for du Pont as General
Motors'
supplier of automotive
fabrics and finishes";42 and that
thus "sprung from * the barrier,
to
be du
Pont
quickly swept into a
General
commanding lead over its com¬

enlarged market Font's
acquisitions
was
And so gauged.
Du Pont and
Motors contended before the Supetitors who were never after¬
preme Court tl\at* the "relevant
wards in Serious contention."43
market" was the total market for

facts, you see that under Section 7 the
consurncr
accepxance
uas,.. D£en defendant hadj urged that, instead very market analysis which enforthcoming and as a result cane of decreasing competition, "com- ables a finding of violation could
has
l>een
partly
displaced." 10 petition will be increased because complicate the task of plaintiffs'
Supporting this parity of accept- Crystal and Colonial combined proof.
ance, Ithe court stressed that "at will; be better able, to
compete
n
h
ttie

the

a

"commanding position as a Gen¬
fore. the law would be clear that, eral Motors supplier was not
in- •«« the House Committee Report achieved until shortly after it pur¬

is necessarily diminished.
To

stock

eniRS the market to include both today is a second element of the
and cane sales» on the other Court's decision delimiting that
hand' each company's percentage market in which the effect of du

A.,M0

m

Motors'

those effects "Section

Beginning with"

elusion of both in the same market °"

a^ Colomal
rombmation

of .General

did, at the time of suit, threaten

without GM-du, Pent, there-

un on
of Crystaleil;(bles the findin that Colonial
sumeracceptance
;J that "forcer- ranking second in the tm state or Us parent_Cuban.Ameri(;an_
a
taln
cane
specialties, such
as
b
this m
ac<juires a subbrown sugar
there are no beet River Territory
Great Western, stantia,
6elit
and thus
b_

would produce

sition

^i&lu-

then '--to!

agreqd^iat,some extent cane
sugar has a higher degree ot con-

te&tr, M

a

* ai\ acquisition
substantially lessen com-

if combined, would however. highlights /that its xahe: about the. fourth ranking unit tionale is ttO unmixed blessihg'for
uyj^iy,

futuie

real

any

P^sent time fliere is no qual- wittfta* .their tore remaining
difference between the two." i1 larger

finishes and fabrics, and that
Pont's

sales

to

General

Overwhelming Diference Found

du

Motors

constituted only ?'a negligible

From

ner-

rentage", of that total market—

Market Defined Narrowly

Court
"plainly

and'more the

this

concluded that the record
revealed" that "du

Pont purposely

national competitors. ConmarKet ueiined narrowly
3^5% in the case of finishes and
employed its stock to pry open the
ceding "that the new firm would
Not so easily gauged is the sig- 1.$% in the case of fabrics
'
General Motors market to en¬
are con- be a greater rival of other sugar nificance of United States v. Gen'
trench itself as the primary sup¬
cerned cane and beet are inter- refiners," the court emphasized cral Motors-du Pont. 28 About one
Narrow Market Defined
plier of General Motors' require¬
changeable." 12 And, even though that "It does not follow, however, month ago, the Supreme/Court
Rejecting this contention
thp
ments for automotive finishes ana
"certa|n purchasers who buy for that competition in the industry held that du Pont's acquisition Supreme Court held that thp'"rpi
resale:, to consumers . . . specify.,would'' therebyYbe decreased."21 (during the period 1917-1919) of evant market" encomna^ed w fabrics";44 that (in phrasing more

As

result, "certainly
most industrial buyers
a

as

far

as

Quotations on either beet or FoiV ds'the cduft hut it ^'A Uiiibrf 23% of General Motors' outstand- finishes and fabrics
cane,ffij the court stressed "that of two units of economic signifi- ing common stock violated Section "only the narrower

.

.

.

both/products

are
side in the

side

Often
same

is natural for

that

stocked
store, so

1 77

grocer to

a

in

cance

S. Ct. 872

the

_

2 American

Crystal

repleWjsh as it is dirtiiftiShfed"'13 orvi&8^55,'S; i>.
his supply of one
other

the

n: Y.i
Da>frfcan, l>» J.

wsu'v't

:!'

J|lt£rchailg£a>ble'

abstract

.

'j.pertton 7 ha<l beeri onlyja sub-

.

mentis Ippeak

_.

Sugar

^ecia«jd'3iiiie

Miman Pinrlmvc

'

.

(1957).

up

anil f)nininn. Ill

courffiw

the

fbut,?seven

at •

.

-

Section !7 took

of
,

istirt?

sixSfv-fnnr

the

w

J*

.

ana

hnt

that

atitd

j

and

ncM

+ft

6^1512

u

Viewing this
operation,

complete."43
6 Id. at 23.

"necessary"
showing "that
a
given range of prices
would

one

the

not

to the other." 14

court

beet
able

are

to

found

8

shift

classified

within

on

ShSf acXe*"!": SJ'Krt
...of

11 Ibid.

23 Ibid.
24 Id.l

.

,

14 Id. at 24-25.

26 United

15 Id. at 25.

,•

States

v.

£.

/.

du

Pont

de

uoraHon

be

may

competition

ioia.

CSt.Us vU"

16 Id. at 22.

quisition

.

Ibid.

25

to substantially

between

^nljfn

the

address

Antitrust

by Mr. Bicks

Section

Association,

New

of*the

York

1957.




before

the

American. Bar

36 Id.zit 884

37 Id. at 679.
38 Id. at 879.

cor~

39 Id. at 879.

City,

July

13,

-

18 Id. at 21.
>

1-9 Id. at 23.
20 Id. at 26.

21 Id. At 27.

.

%

«<«

,,.2S Unite* State*[•».-'E.

t. du.font i.

K72mn«7? Comply, * J, ,7 s. Ct,
119571.
874

...

-

w

40/cf. at 879.
41 Id. at 880.
42 Id. at 882.

32

p. 11

33 Id. at 878.

U949).U

gist

'

C«.,

C°"S"

therefore,
Pont had
enteiins
page

34 Id. at 877-878.

^

r,.,nLZh
~

on

stock

35 77 S. Ct. 872,

lessen

corporation

Acquired .a"d th«

&n

Continued

uTS

commerce,

17 Id. at 25.

•An

siim,
as

purchased

part, read:

another corporation
engaged also in
where the effect of such ac-

22 Ibid.

13 ibid.

the

2? 0Id Section 7» in relevant

By resting its deSection
7, the Court

24.

12 Ibid.

and

sufficiently interchange¬
be

at

10 Ibid.

from

cane

cisito

Ibid.

9 Id.

Accordingly,

"that

oral argument.

7 Ibid.

within

consumers

Ill

the Court held that du

the

that defendant had failed to make
the

analytical) the"fire
continues,

kindled in 1917

to:' smoulder"; '- that
it "burned
briskly to forge 'the ties that bina
the General-Motors market to du

ft

fibrics.33

was

Pont"; and that "if it has quieted
-down, it femains hoV and,
constitute them past performance, is likely at any
Pl'OdUCtS SllfflPlPntlv rfistinpt •fr'rvTV, time;to blaze and make the fusiop

Action

N.' had treated hardly at all

ef, las? "7." issues; indeed,

mobile finishes

emotive than

eenerallv

arda of

-

A3 Ibid.

44 Id. at 884.
*--45 Ibid.

879 (1957).
(emphasis added).

^

Volume 186

Number 5668

.

The Commercial and Financial
Chronicle

...

(905)

are not prosperous;

/ v hierchahts

From

By ROGER W1 BABSON

Mr. Babson examine* the economic future of
shopping tenters
and what even small cities1 should do to
prevent their rise.

of the News

Offers/such suggestions

By CARLISLE BARGERON

parking problem
have

I

As

heard ,it

from the" in - the Senate which would be
pulpits, the rostrums and the press, broken by Republican Vicc-Presithe civil rights

fight has been

finest

the

of

;

manifestations

of

wniiia

has;'ever
been

committees

ef¬

an

cratic

r

e

d '.

a

d

n

of

e mo

and

a

/free

sho

w

t
t h

of

e

bent,

would

Both

the

th

for
we

.

Carlisle Bargeron.

shaping most of
moral Way of

If

are.

Russians
of

it

a

out

make

the

,

anything
the

capital out

Indonesians,

the

'

n

a

most

practical
lick

way
for
Shopping

Some Shopping Centers

to

capitalize the

even-

ings and encourage stores to keep

City a«u Town ouvcrinucuis
and jluwii Governments

loncer.
longer.

ooen
open

live

Kverv
Every

-mer-

chant should keep his store fully

are

profitable because of the jealous" lighted throughout the

evening.

trill

uuuxiun-

J.«i

mvinuuu

uy

UPV..

r

Selfishly favor different sec-1 y, Some readers believe that oldtions. As a result, nothing is done fashioned two-and-three-story ofmen

it

a*,

luhJ wi,i!
nI
M
w

r-.i

n.

•

'

j

...

American citizen.

,

The first

re-

each

one

must

Theyihope

quirement
that

:

-•

,

Senate

Finance

our

people have never heard
This committee hasn't done so
about and, still don't care about, .well
in exposing the inequities of
r
After/all, if, i$- pretty hard to (the Eisenhower "Administration so
convincq the ordinary American rfar. /-It spent considerable time

Vhe'productTon of'th/'co.'/ buildings-without 8t basement

m

,

the

The*

upmi
sumers of their, community, r so
"rii sarmnmpnt every ^consumer is- djgpendisnt upon
'P
•;
.
* these merchants. These merchants

;

build up a case against; the
Republican Administration during 1
the recess of Congress. Then, there '
is the investigation of
monetary

by

^r,a,c
T

„

nnnp

to the detriment of
businessman andaver-

Syrians and other unlettered and Committee under the chairmanundeveloped people whom most -ship of Senator Harry
Byrd. i

of

,a n

:

bankers

to

....

(

Capitalizing the Evenings

communities

r:

--;

,

Centers is to

vity

gUVernniflHS.

of -business.

small

policies

the
tue

round in gs,

designed to show that
Republican Administration•
being playing ball with the

age

financial and

of living

way

would

with

our.

should do

our

has

to
tt»

as
cto

•

O'Mahoney
fairly similar

big

living, how decent

we

in

e

on

be

increased; and stores should be
longer and provide better lighting

open

■

by

the

to.be

wrong

Wyoming,

cupies,;/.

disinterest

no

are

which

we

another

o

Kremliif

seem

and

tices

par¬

•

world,
ticularly

me
mc

some

tic

people

to

,

,

ask

.-^.vuiuho

economy,' that
presently constituted muck¬
raking committees, one headed by
Kefauver ;,on anti-trust prac¬

the

era

part
d

a

on

taxes

answer

'

■

their

present
0fi<!S1thBtlnS 9enters'.
present judged on its eaclv musrt be
answer w that

have

Chairmen.

It would
mean,
of
the
country's

fort, as I have;
heard,

which

Merchants

------

-<

a reorganize (he
They would icoiganue tnc

It has

known:

n':

c

Every merchant should buy the
building which he successful oc¬

.

as:

and service.

Well just what would *uch a
situation imply? The
Republicans

humaqkind
that the world

have

encouraged to keep

dent Nixon.

one

:

town fathers should solve the
give relief from taxation; vacant stores

or

taxes thereon should be increased
until the owner gets, them rented.

:

.

should

.

the

/ V community
^suffers from H'high
blood pressure.'" Instead of Teducing taxes on vacant stores, the

Oil

■Ahead

13

s

have

-strong

a

back-

bone'-ror

Roger W. Babson

i

core

in the form of

large, - successful,
and
department store or

a

well-

known

The second

market.

that

is

each

super-

requirement

Shopping
,

Center

the-life blood ;'ow

are.

stores

are

all- If. the

profitable,*-every citiIf there

zen

should be prosperous.

are

many

vacant stores, then the
entire community will ''suffer.'
I
hope, that, no .- newspaper editor
will say: "But this does not apply
to us. We are too small." Let me

reply that

my

comments are

more

I
ifbh't believe this, I believe that
;{be^second and. thifd stones will

be developed into apartments for
^bitiGU^clepkswhp work in the
;sJ01*_e$ -belo/v ,o&/nearb;yr :
clerks wiU-hj^ responsible for tb^ir

respective stores- of iithe^evepwig,
perhaps up to midpightHn Europe
successful bankers and roerchants-themselves live over their
stores

and

available

are

...

at

,any

...

time« day or niSht.

important to the small communities

because

they

can

-

.

now

avoid

Harris, Upham & Go.

should be able to support itself the trouble from which thg larger ;
pfl "suburban /development sur- cities are suffering, plus possible s To Admit New Partner
mounding it. • The third require- Fallout threats.'// r.
•Harris,; • Upham ? & ? Co*,:; 12 0
businessman or the American with former Secretary of the ment is that it must be well fiworker,* having a life span of 70
-Treasury Gedrge'Humphrey as a nanced. "/ ;
,
/ parking Is the.Great Problem , Broadway, New-York City, memyears, we will, say, with; his prob- witness and latterly, the; Under-- Certainly the well-established'
The automobiles may' be rob- hers of the ..New, York Stock. Hxlem;
.

of/achieving

security

for

comfort and-Secretary Mr.1 Bui
family he has impression around

the

teaied, that hi addition-to wanting to ; join a country ;club and

providing

a

that

have a place to play
golT,lnniseif, ttiat he must worry
millions

of

But be

-

civil

miles;

that

■'

people

be,.;th'e

may

uacx

10

us

*

^

—~~ .—

wai i - «uu

^sutniu.. •

ntcac

A

;- -k—.i.-.

~r. i

--.t. <$■■■

,

grated by; active young men: Too ■.adtomobiles/r.-demand/ p <Tr.k i n g membership m. ;thq New/ Y°rk
many: Gf the fading stores in .privileges. If parking space is not Stqck.Exchange.,; ;/:•
"
adjoining cities are coasting on provided, they can block.'"traffic, / V-;.
the
tkn past .,irftrv ,onri policies of/a handicap'productive industry, and *°
^s-j-i-—
--i
-r»^i—a jj
work sand
{'..'Columbine SecsivAdd3

Director of National

rights parade which he has

been
he-

go

A

"

Brady Named Publicity

aiwayi
it

as

of

to

during the Congressional recess and build up some
politically
Democratic capital.
:
^
♦

swimming-pool for his

livelihoods

intends

work

kids and to
about/thev

it

"

*

witnessing as something that
should, beat Jtiis b^eafst about,

hnd show how clean he is and how

much for, constitutional rights he
is, as something, indeed;; that will
excite
tlic
admiration,
of
the

-Pointed Director of. Public. Infor- J
ibation oftthe National Industrial temporary.,

Indonesians, ; the, Syrians/./^the
Russians, Chinese; et al—frankly
there -has

political

been

never

The

■--

founder^^

•

-

of

the

-

much

so

skullduggery in

Conference -Board according to

all

our

tor of Public Information for the

time.

....

.

.
,

\

First,' we accept the widely Past three years.
publicized proposition that nuts
.

to

proposition of what is
it is a question of which
political party will capture the
Negro
vote.
There
have
been

M.

the

m

press

P^ty should do
whether it

means

to

as

sistant

next Presi-

have

anyway

publican

in

want

you

mind

Senator

high

one

who

says

to

into

1/ hadn't

this.

I;

am

to

to

400,000 Shares

Blvd.,
Coast

•

< -V

■

-.4/

Walt Disney

,

Productions
It

'

J;.- ,/•

-

";..4

:}

Common

staff of J. Barth & Co., 404 Montgomery Street, members of the
New York and Pacific Coast Stock

the

i

-

-

•

.

'

($2.50

par

yiii

-vp

1?.'-.

■

i-

,

i

i.

:.<■' V

■

'/■'i

FRANCISCO, Cal.—Sarnuel C. Myer has been added to the

-

:>i\

'

\

If; ?v

;•

•./> ''{

tf.

value)

/././

get

referring

■'

I'

B.

Sunset
Pacific

Exchanges./";;./. /:'1::'c"...

i

v.:

As-

Arthur

d

i

:

SAN

he

intended

the

«\\

Vice-

Jardine

of

NOT A NEW ISSUE

Burton

(Special to The Financial Chronicle)

With Taylor & Co.

political

maneuvering in the last
days of the fight in the Congress
just adjourning. The Republicans
had been) trying to make the civil
that
pat - it' would hold

>

/

,{i"

SAN FRANCISCO,

rfv

fnf

'k

Tnvlor

Un oat7athe" 6f" Bevei'ly Hills:
tuuu

D

Cal.—Frcd' has

Jr

cratPna

N

Share

ioined

/'

•

ComonnV

Mr. Scatena was
y

Price $21.75 Per

TVTrniltnn

Rr

T.V"«

)

-

r

.

place the late Joe McCarthy. But
tnuch to: the 'amazement'-of', the

GOP/Kohler

was

Democratic

candidate,;: William

T.

*

•

;

,i.v.

9°- and Davles & Co"
/I /

defeated by the'

.

,

n/«.t

WO

nr

.

:
t

-ic> ;V/-

Wltfl VVcstcrn OfiCS.

(special to the financial ghronicle)£

Colo.;

DENVER,

—

Robert;

' ;

•

'

•

;■

W;;/

Hansen-and John H/Schultz have

Prospectus describing these securities and the
business of the Company may be obtained within any Stato frorr^any :\
Underwriter who may regularly distribute * it within such State. 7*he .
securities are offered only by means of the Prospectus, and this announce- ;
went is neither an offer to sell nor a solicitation of any offer to buy,
Upon request,

-

a copy

of

a

r

: -

, •

y- J

-•

.

y,

'

"

-

.

•

.

±.

-J/-

-

.-v

/roxmire; Then there is no secret become connected with Western
official Washington that Demo-f
Securities/Corporation, U. S; Na-

in

crat

Senator Neely of West Vir8inia, ;in-his eighties, is dying of

tional
,

..v

Bank
.

.

•

Building.'
.

•

;

•

-

-

"

,

;

.

,

Goldman, Sachs & Co.

horr^s7eCg1nLe' Go/r/; Uiree With Brown & Stark
^ould

ST. PETERSBURG, Ela.—Percy
Brown, Roger H. Debien and Wilbur C. SieVers are with Browil & \
tie/vote Stark, Inc.; 3024 Central Avenue.

appoint • a Republican suelessor.
That:' (assuming
Kohler
nad
been elected)
wouldL have
§iven

the

H-

(Special to The Financial Chronicle)

up until the
election'whereupon
they .-.fully-expected to elect a
Hepublican, Walter Kohler, to/re-/

Wisconsin

June

of

—

become

With J. Barth Co.

7

Re¬

understand the attitude of
the South. "Why, in my state," he
says, "we don't try to keep the
Negroes : front, voting. We pay
them to vote.'^///;:
: '
But

the Midwest Stock Exchange.

stock Exchange-

can't

'

and

Secretary

memhers

look at it.
I

has

so, reams about n0gan> inC(> 6705
our

When

Hogan Officers

John

President

whicn

dent will be pick Nixon or Lyndon Johnson. It has been pretty

disgusting

St.

from producer to consumer.

cocktail party.

~rr.

HOLLYWOOD, Calif.

.

iearns

--

A. B.

the

wrong,

or are at some

'

Republicans

a

}

August 28,1957.

a

c

.

Lehman Brothers

"

,

i.

/.

'V

v
•

? -""




<.

•

u.

■

'Kidder, Peabody & Co.

-

S

'4

:.r

•

.S

,

,

-

t

Commercial and Financial

The
14

(906)

But

Should Britain Sit Back and

I

Is it, Dr.

Einzig asks,

resisting

from

businessmen

price inflation, and to prefer,

; If only

have not

we

i„

DAVIS*

Division of Reactor Development
States Atomic Energy Commission

Director,

the American authorities
this they

United

*

in^an In-

The ,United- States- are

>

finitely better position that Britaih to have a showdown/In*Britain

principal European countries should not sit back and ^

other

,

By W. KENNETH

K

>

await decisive American action.

prolonged major ;stvikewould
the disappearance of the
gold reserve," There is no ; such
danger in the United States.
In
Britain even a minor depression
a

LONDON, England-^-Recent in¬ the prospects in the United States
are far from promising.
It seems
creases in bank rates in the United
•States has given people on this -that the United States authorities
Bide of the Atlantic an unwelcome have not learnt from the mistakes
They
reminder of of the British authorities.
the fact that have embarked on a course which

v

might

advent of/a

in the

result

after.-The

Government

Socialist

/

,

of the recent debates on the government;

i;
!

[i

broad problems and transition from a
;
going industry with Britain and
|
? Russia, the author reveals "drastic reductions" made in U. S.
S^R^fgrahdiose plans- for nuclear powtirl and,: l^ilc conced^ ^ing U/K.'s excellent progress, denied we are losing "some kind
,
of hypothetical 'nuclear kilowatt race.'". Warns that our
;i
) nuclear plants must be more economic than the ones in Britain r
In comparing our

government development to a

>.
.

crux

development program. Mr.
20 years from now nuclear
power equal to our present total generating capacity which,
however, will still be only about one-quarter of total capacity
then.

-

U

the

are

pirvate partnership power reactor
Davis projects for the U. S. A. in

t,.

.

,lead to

i

that

1
•

development head reviews the crucial problems

AEC reactor

might muster i up the necessary j. %
1
determination; to; resist wages in- flatipn even at the cost of major ' v '
strikes and
a
minor depression. T*

instead, the relatively ineffective

policy? The eminent British economist contends
learned British mistakes, and believes Britain and

dear money

Issues in the United States

of inflation tends

pace

and businessmen realized

high-wage-induced

firmly

more

celerated

aggravate the risk of a slump
rather than mitigate it.

pathological fear of the return of a
American authorities and

a

ployment.. As a matter of fact, so
from being the case, tire ac¬

far

to

deflationary slump that) prevents

;

Current Nuclear Power

if it did constitute
against mass unem¬

insurance

an

By PAUL EINZIG

'

in prices is

present rise

too steep even

Await American Action?
\

the

Chronicle... Thursday, August 29, 1957

general election. In the United
resistance to indicates that they will make the
States Socialism is virtually un^
same
mistakes,
and instead
of 'known.
wages infla¬
" " ■
' or we will not have economic nuclear power in the U. S. A.
tion
is not a learning their lesson at the ex¬
Britain
is" strongly
tempted, r
V,
rf...;
British
prob- pense of Britain they will have to
-therefore, to-sit back and await .'/Nuclear,electric power; appears- ;sonnel near them and any operalearn it at their own expense;
> \
1e m
but
a
American action. But if only Brit-,to be the first large scale civilian lions with them must- be< carried
world p r o b<Dear money was an unmitigated
ain, or any of the principal Euror application of nuclear energy and <out by remote cdntrol:// *"■-/■
1 e m.
Any failure in Britain. It' was unable
pean industrial countries were to as such will open the door., to-the-/
The basic nuclear fuel is an iso.
wide spread to check the rise in wages. Indeed
take the lead, it might influence
other applicafiliil tope of; uranium, U-235,- which is
realization of it was even unable to check the
present to the' extent of one part
Ithe attitude of the United vStat^. fitj° ri s. .It,-is.,,
A
this fact is li¬
■expansion of credit, although it is It is of not the
/in 140 in naturally occurring ura¬
slightest,
*.y dpsgHfcj/n,
able to make of course always arguable that, but
nium/. Natural uranium can be
keep eyeing- each other; to'-iee';^of/first
resistance to for the 5% bank rate, credit would
used in some reactors though: con*
which of us is going to .act first, attention. •;
,
inflation
in have expanded to an even larger
siderably: cheaper and more effi¬
-Yet this is what seems to be hap- J
Nuclear /*■' ;
Britain even
cient reactors can be built by con¬
degree. The Government itself is
pening.
Reactorsf"
more difficult.
paying a heavy price in the form
centrating the U-235 isotope. The
For one thing, of additional interest charges on
//It may-ibe
fuel material, uranium, is gener/
since the world-wide character of the
helpful for
floating debt and on funded
ally put into a reactor in the form
-next

.

-

,5

.

Whitehead to Conduct

the

rise

in

costs

tends

lessen

to

pressure oh the British balance, of

some

Its prestige as a

maturing loans.

debtor has suffered as a result of

Course in Investments

view

payments, it mitigates the urgency the basic -weakness of the giltDr. Edward Davison, Director of
disinflationary measures. Not¬ edged market. Institutional and
withstanding
the
weakness
of individual holders of Government the Hunter College School of Gensterling that followed the devalu¬ loans—the most valuable section eral Studies, has announced that
ation of the franc, there is nobody of the commtmity—have suffered Louis H. Whitehead has joined
of

in London who

seriously expects

undeserved

form of capital
burden

in

the

world

free

in

general, and in the United States
in particular is expected to enable
Britain to inflate to some degree
without having to pay

penalty

in

the

deterioration

form

of

immediate
of

the

grave

a

balance

of

in
the
depreciation, The

punishment

devaluation this year.
Inflation

a

was

+

vestm

ni

will

y

States

the Government would have taken

consumption.
action

As

it

domestic

is,

considered

was

beyond

check

to

necessary

maintaining the ineffec¬
already in force.

tive

measures,

The

rise

in

domestic

and

wages

prices is allowed to continue.

So' much for the material effect

\
Of

international

sterling position.
the

realization

the

on

But, in addition,

that

less all in the

01*

inflation

'nium

;-is an(j what it

/does.
;
;

V.

-

that

indications

ample

Jf

-

i

ses-

sions.

the

a metal can/
.;
;
•>;;>
A certain amount of the nuclear

closed in

'

W. Kenneth Davis

significant

amount of

that

is

,

fission

nu-

it pro-

heat produced

is

times as much as

and

must ti be

tors

The coolant;

reactors, at least to the physicists,

Common coolants,; in nuclear re~

actor

a

:

Univer-

acuse

actors-.*

are

water

are

more

boat

tends

that it would be

American

and

s

Whitehead has been

can

national characteristic of

statement,
much

is

it

difficult

difference

actual

the

by Britain's

action

the

to

that of the United States
trends

far

as

are

A

as

con¬

cerned.

Institute
courses

What is

not

r

Form
on

more

firmly

to

American

wage pressure by means more ef¬

effort to resist inflation is awaited

fective than higher interest rates.

in

breaking
pressure

the
to

inflationary
come

follow

down the

slow

Power is generated as in a con- reactors are often characterize!
ventional power plant, either by by the type of moderator utilized,
using the steam direct from -the for example,? the sodium (cooled)

in

spiral,

under strong

the

example,

Cor stability of prices in the United
States and rising prices in Britain
would necessarily mean a grave

balance of payments crises through
the increased competition of Amer¬
ican goods and through the effect
on

sterling of a world-wide
city of dollars.

scar¬

1

essary;

changers

i

r, •

DENVER,
Investment
with

Co. has
in

Building

been
the

to

business.

formed

Farmers

engage

Officers

in

a

are

W.

Corey, President; ElNelson, Vice-President;
ance to effective disinflation. The
M. D. Corey, Treasurer, and M. e!
bargaining position of the Ameri¬
Secretary.
Mr.
Nelson
can
industrial worker cannot be Nelson,
was formerly with
Olympian Senearly as strong as that of his
British opposite number, having curities, Inc. *
is

there

Socialist

political resist¬

mer

W.

,

regard to the degree of unemploy¬
ment in
is

it

the

then

two
than

countries.
American
a

it

pathological

of

their

stand?

Is

MINNEAPOLIS,
G.

Kinnard

&

Co.

Minn.
has

—

may

heat

the equivalent of the boiler in
conventional power plant..
',

a




fear of

slump?

a

return

of

When

terial

fission products

.,

and
of

the

fission 'reaction

necessitates

the

consumed by

accumulated
interfere with the
in
addition, the

nuclear reaction
reaction

fuel ma-

fraction of the

a

has been

the

fissionable

fuel

*

re-

maining will not be sufficient to
provide for a self-sustaining reaction.

It

is

necessary

then

to

from the

The radioactivity accompanying^remove the fuei materiai

J-eaetor to process it to

recover

heavy shielding around the
e unburnt fuel, and to CO
reactor. ; The principle • shielding-tr®!e and dispose of the wa
effect is simply from the mass of 'a:?lv<: was e
shielding. .No way is known to ations are rather, difficult an^,fi.*"
substantially reduce shield pensive for such highly radl£"
active
materials.
They may me

weights. Further, any materials
exposed to the neutrons involved
*n the fission reaction are made
radioactive and must be shielded.
Thls applies to coolants passing
thl*ough the reactor and any materials removed from the reactor.

nuclear

John

opened

^

a

branch office at 305% East Broad-

reaction

itsplf

ticularly radioactive
terials

will

not

in

am

These

turn

nav

indure

a

Admittedly,

injury

State

w.

V""

cnme

dis-

earned out at a location soi
tance ±rom the reactor
Self-Feeding
.

x

..

Aspect
^

ocnPrt

of

interesting al
n.^le®r reafors
nuclear
fbl,e .t0 mal?e additional nucie^
111 suclI a,
fjssion
neutrons made during tne
'

Another

,

can be captured in n
-fissionable uranium °r in hofJnes
to Produce the fissionable isotop
Plutonium
and
uranium These materials may be r/„ a^d
in the chemical reprocessing
,
used in reactors as fuel, "nis

ma" reaction

radioactivity in other materials
deflationary way Bismarck, N. D., under the
exposed
to them but
mfmt he
it is well direction of Roy S. Towne, and in
shielded to prevent
worth while to pay an insurance the
to
Syndicate
Building,
Sioux —
Unfortunately, in so far as it is premium against it in the form of Falls, S. D., under the
manage- ,,*An addi"ess by Mr. Davis before the
possible to judge from a distance, a very moderate rise in prices. ment of Edward C.
Danielson
Midwest Regional Conference of the
&uu*
Council of
Repeating British Mistakes

ated) reactor, etc.
v :

ex-amount

then be considered

Further,
the r waste
products
(cal,led fission products) from the

,

Two Kinnard Branches

em¬

ployers cannot make
because

_

Why

intermediate

graphite (moderated) reactor, the
water ' (cooled) graphite (moder-

very

Colo.—Corey-Nelson

offices

Union

and

thus bypassing the
intermediate fluid cycle. The nuclear reactor along with any nec-

Exchange

)

NT

reactors

conducted

Corey Nelson Inv..Co.

Harold

Britain would

he

(special to the financial chronicle)
.

securities

succeed

to

successor

Stock

where

n

United

should

Finance,
York

in Economics and Current

London, as indeed in other cap¬ After all, there is no overfull em¬
itals, with anxious interest. If the ployment in the United States, nor
States

member of

Investments.

Situation

puzzling most people

resisting

'

the

Puzzling

this side is why the United States
are

of

of

New

see

between

a

or

inaction, the decisive influence is

outcome

will

neutrons which

it y,

faculty of the New York In-

stitute

over¬

Sterling Area is liable to be the conditions described.

The

which

actually effect the
and. a either be allowed to boil or may reaction .to a point where they
conditions seems to be merely one
Louis H. Whitehead
lecturer f o r be kept liquid under high pres- are most effective. These unique
of degree.
We on this side are
the Amercian .sure), various gases, liquid metals materials are called;''moderators"
inclined to assume that all is well
Institute of Banking, Mr. White- such as. sodium or . bismuth,
or and are materials-,'like ordinary
in the United States, because their
head
is a partner of Cosgrbve} certain;
organic^ oils. Reactors are w'ater;* heavy'watery graphite, ot
difficulties
are
not as acute as
Whitehead & Gammack, members often characterized .by the coolant
beryllium. Some reactors, the soours,
and because they have a
of the New York and American used; for example, the pressurized
caiie<I "fast" reactors do not use
superior economic strength en¬
Stock Exchanges.
1
water reactor, The boiling water any moderator at all. This aspect
abling them to withstand these
Mr. Whitehead has had more teactpr, otc.
^
reactors is so important that
difficulties more easily.
But the
British

between

use¬

with her exertions. Even though

economic

of materials in the re-

use

j(which ;, may

.

we

same

world economy to be able to save
the world either with her example

world

feature of

faculty of Syr-

The difference

position, Britain is they say, no the British national characteristic
longer of sufficient importance in of understatement and the Ameri¬

influenced

;i;

important

must be heated to a high temperature if power is to -be generated.

Formerly

;

•

the

neumecha-

,•

AnotheF

firm's investment counseling>de-, reactor or a boiler heated
by the
cently, and some of the speeches
made
by
American
statesmen, partment. He is a graduate ;of the high temperature coolant to drive
Wharton
School
of
Finance
& a turbine-generator.
We do not'
less for Britain alone to try to bankers and businessmen, might
Commerce
at the
University of know of any practicaLway of prostem
been
written or made
the world-wide
in
trend.
In have
Pennsylvania.
Since
1942}: Mr. ducing electricity directly from*
spite
of
London's
international Britain. Indeed, even allowing for

or

the

control

-nisms and circuits are used to in*
sure the safe operation of reac-

re-

support of their attitude.

argue

capturing

by

reaction

,by/;trons.Elaborate

burning the same weight of coal.
Thls heat ls Produced in the fuel
material>f itself

keep the reaction

reactor;-power level

can be controlled by either re*
moving nuclear fuel or by adding
SOme material which, poisons the

The

very,

produced

is

The

going.

member of the

,

than
30 years of experience
in
difficulties are there all the same.
a demoralizing psycho¬
investmefit research and advisory
logical effect. Those against firm Some of the articles written on the
work
and
is
in
charge of his
action; have
now
an
additional subject in the American Press re¬

They

..

fuel is needed to

the

of

moved by a coolant.

to produce

excuse in

ura-

easily corroded and it is

ucts
:

>

most

The

is

or. as an

Since the

desirable to keep the fission prod¬
confined the uranium is en¬

...

2 a»rge,: as, much as .three million

meet one

Y_,
ZT1

concerned. Indeed there

are

such becoming evident.

no

a: nu-

reactor

duces heat and radioactivity.

total of 15

high cost of the dear money policy
and its negative result is already

action

Joxide of uranium.

appears

payments position. If there were
indications of such a deterioration,
firm

\of metallic fuel elements

f

ua"* clears reaction
be-

4-

nts

bept.

to be no reason
why the result should be materi¬
ally different as far as the United
are

«

certainly not worth

what

/clear

re¬

briefly

a characteristic

».

in

course

the sacrifice involved.
There

to

conduct

mortgages and other
debts has increased considerably.
of

The result

staff

the

I

if
/'

per!

Governments, Cleveland.

^

rl

nnQP

Continued 071 pay*

2*

Number 5668... The Commercial and Financial
Chronicle

Volume 186

(907)

drop from 43% to 33%. From here
on, the company may be able
gain some benefits for stockholders, from further
growth.
The stfock has been selling recently around 30 to yield 6%.
The
pricp-earnings ratio is 14.5 based on earnings of $2.07 on the
to

Public

Utility Securities

■

.

shares

By OWEN ELY

Service Electric &

Gas is

utility

Bank Installment Credit

oper¬

ating companies in size, with annual revenues
approximating $312
About 68% of revenues are derived from electric
opera¬
tions and 32% from gas.
Analyzing the electric revenues, resi¬
dential customers contributed
34%, commercial 30%, and indus¬
trial 32%, with 4% derived from miscellaneous
sources.
About

'

million.

75%

of

gas

revenues

(including house-heating)
dustrial

and

1%

obtained

were

while

from

15%

residential

were

Still Creates Good Returns
By JOHN W. JONES*

customers

commercial, 9%

Vice-President, The

in¬

-

gas supply is obtained from Transcontinential Gas
Pipe Line, Texas Eastern Transmission, and Tennessee Gas Trans¬
mission under long-term contracts.
The
company has also con¬
tinued to buy some coke oven
gas from Koppers. Natural gas has
been supplied only in fringe areas
(about 20% of total sales)
and mixed or reformed gas of low fctu has been
supplied in the
major areas. Btu content of mixed gas has been raised

moderately

from the old level of about 540 btu.
The

company owns all the capital stock of Public Service
Coordinated Transit, but the operations of that
company (a very
Targe bus system) are not included in the published
earnings
•.statement, except as the subsidiary's earnings affect the parent's

-1955,

taxes.

The

bus

had

company

deficits

in

1952,

1954

and

but reported net income in 1953, 1956, and in the 12 months
'■*

ended June 30, 1957.
"PEG"

serves

population

a

about

of

3,194,000

including most

;of the larger cities in New Jersey—Newark, Jersey City, Pa~ter9on,.Trenton,

Camden* Elizabeth,

Hoboken.

(diversified, New Jersey being
trialized
:

states

in

growing of truck

the

crops.

one,

of

The

economy

is widely

the mostly highly indus*it is also a leader in the

country, while
Important manufactures include chemicals

-and related

products, apparel,.instruments, rubber products, elec¬
machinery, glass, food, .etc. The list of companies served
would include such well-known,, names as General
Motors, Westringhouse, Standard Oil, Union Carbide, Curtis; Wright*.RCA, Ford,
trical

General

Electric, American Tel. & Tel.,,,du Pont, Continental Can,
_y. S. Rubber, U. S. Steel, Campbell Soup, General Foods, Alu/minum Company of America, etc. It has been estimated that 15%
of all research in the United States is done in New

,ing the Bell

Telephone Laboratories,
plants, and many others.

^research

the

Public Service Electric & Gas has been

the current

revenues

It

is

important

procedures
and
practices be reviewed in light of
today's conditions and that any
complacencies be removed.

du

that realistic rates

be known and that losses in them

Pennsylvania banker offers encouraging remarks about the
profitability of bank instalment lending, in spite of present
day obstacles, and suggests methods to cope with rising
The rapid growth in consumer
indebtedness experienced during
the past decade is now
leveling
off but installment
lending is still

vital

a

factor

in

take

be

recognized. Income from in¬
lending can be quickly"
depleted
through
unrecognized
stallment

leaks in these structures if proper

I

"past due ratios."
of

care

the

needs

of

these

good risks.
The dealer's need for assistance
in

moving the

adversely effects profits.
The lack of adequate records is
a
glaring fault in many in¬
stallment
loan
operations. It is;
still

important that costs be known, socan be set; that;,
the profitibility of dealer accounts

Lancaster County National Bank,

Lancaster, Pennsylvania

miscellaneous.

^Natural

•income

lenders.

collection

Prompt, positive and realistic col¬
techniques at all levels of
the activity will combat the trends,
toward rising past due ratios be¬
fore it becomes a major factor and

Company

of the top

one

based

that

lection

Public Service Electric & Gas
Public

.Outstanding June 30; or 12.9 if the figure of $2.35,
the average shares, is used.

on

stallment

increasingly large

accounting and statistical records
are not
kept. We can no longer
depend upon volume for profits
but must price our services, so
that every loan pays its way.

the

creation of
volume of consumer
goods in¬
bank profits. The
properly staffed 1 volved in our rising standard of
and operated installment loan ac- •
living keeps indirect lending an

tivity will continue to
returns
be

on

create good

invested funds and will

attractive
of the

source

highly publicized ills of the
industry banks can

strong public relations factor,
bringing many customers into the

automobile

bank for the first time. The
high
level of bank loans has caused

highly profitable business in this
field. Better lending techniques

a

bankers

many

all
er

to

sharply curtail

lending activities. While great-,
selectivity is desirable in such

times

these

as

lax: in

our

we

efforts

should

to

not

attract

still

do

and

realistic rates

importance than at
World

persevere

a

talk

of

of

greater

time since
banks who

any

II, but
in these efforts find the

still

to

be

McCloy Joins : 1

Eastman Dillon Firm
CINCINNATI, Ohio — C. James
McCloy has become associated
with Eastman Dillon, Union Secu¬
rities & Co. Mr. McCloy was for-;

merly

local

manager-for

Pont

there.

Joins Kidder Staff

(

by Mr. Jones before the

Past Due Accounts

„

Reports
and

of

losses

caused

on

some

rising delinquences
repossessions have
concern

This advertisement is neither

of $312 million
comparing with $214 million

an

The

•

,

in¬

among

liam J. Eggleston, Jr. is now with
A. M. Kidder & Co., Inc., 207 East
Las Olas Boulevard.

*

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

any

of these securities,

tin 1952.

During this period electric revenues increased 35% and
The company in recent years has had a heavy construc¬
tion program. Gross additions in the five and a half years ended

'NEW ISSUE

August 29, 1957

iJune 30, 1957,

were $527 million less retirements of $43 million.
current' construction program
running from June 30, 1957

through .1960 approximates $271 million, of which $247 million
"is for electric facilities and $24 million for gas."/Steam
generating
splants with a total capacity of >1,330,000 kw are under construction
or planned,
for anticipated completion as follows: 450,000 kw in

|1957, 290,000 late in 1958, 290,000 in early 1959 and 300,000 in 1960.
\Looking further ahead, the company has projected a peak load of
4.2 million kw
by 1966, or double the load of last January.!
:J ■■ Capitalization on a pro forma basis (including $60 million
1st and refunding mortgage bonds
being sold currently) is ap¬
proximately as follows:
Millions
s,

Mortgage Bonds

.'

Unsecured

Preferred Stock

.
..

.

-

17

$1.40

dividend

•

•

.

•

2

'

Dated

preference

■

33

Due

September 1, 1957

September 1, 1987

100

$985
"Includes

•

■4J-s% Series due 1987

8

324

Restricted Surplus

«v

First and Refunding Mortgage Bonds,

18

y

75

—

»*;•

Public Service Electric and Gas

39

•

'

182

.Common Stock Equity

-•a

Percent

$387

^

Debt

$60,000,000
7

"K

stock.

ccmmon

The stock of Public Service E. & G. has been in the hands of

.'the

public

since 1948, and including one year of the holding
regime, the record has been approximately as follows,
•using data as reported by Standard & Poor's:

Price 101.026% and accrued interest

company

■

.

Total

Invested

Percent
Earns,

on

Approximate

Capital

Invested

Sliare

Dividends

Price

Equity

(Millions)

Capital

Earnings

Paid

Range

Ratio*

"

f1957

$936

5.0

1956

880

5.2

33-28

$2.10

1955

790

5.4

2.26

Copies of the Prospectus

38

34-29

1.65

1954

723

5.5

1.96

1.60

1953

672

5.3

1.80

1952
1951

37%

36-31

$1.80

37

including the undersigned, only in States in which such underwriters are qualified
to act as dealers in securities and in which the Prospectus may legally be distributed.

r

30-26
27-25

1.93

1.60

28-24

2.13

1.60

24-21

39

6.1

6.1

2.06

1.60

27-21

40

516

1949

5.6

552

518

_

_

6.2

2.25

1.60

26-20

1.97

0.80

25-20

472

6.1

1947

418

7.5

31.

of the several underwriters,

40

1948

•As of March

any

42

-

601
_

1950_.

be obtained from

39

1.60

may

-

.

W-

—

mm.mm

tIncludes $1.40 preference

common

—

stock,

30

43

on

Eastman Dillon, Union Securities & Co.

Dick & Merle-Smith
Carl M. Loeb, Rhoades & Co.

Merrill Lynch, Pierce, Fenner & Beane

invested

capital has declined one-third since 1947—from 7.5% to 5%. The
latter return is based on invested
capital of $936 million as of
March 31, 1957: But using an
average (mid-year) estimated rate
base in 1956 of
$814 million* and adding the interest on construc¬
tion credit to net from
operations,. the return for the calendar
year 1956 works out at
6.03%. In a recent 12-months period the
company earned about 7% on the investment in electric plant
and 4% on
gas, or an average of 6%, according to Chairman Lyle

R. W.

Pressprich & Co.

Estabrook & Co.

Salomon Bros. & Hutzler
F. S. Moseley & Co.

Dean Witter & Co.

Wood, Struthers & Co.

"PEG's" handicap seems to have been that it started out with
rather high
earnings and rates following the dissolution of the

Shelby Cullom Davis & Co.

holding

company, Public Service Corp. of N. J. Residential rates
(as reflected in revenues
per kwh) have declined about 21% since
1947 compared with
14% for other investor-owned electric utili¬
ties.
The
retarding effect on share earnings of this attrition in
rates has been

partially offset by permitting the equity ratio to

New York Hanseatic

Corporation

Wertheim & Co.
Clark, Dodge & Co.

Lee Higginson Corporation

McDonald.




Corporation

43

also restricted surplus.

According to Standard & Poor's figures the return

The First Boston

,

: FT. LAUDERDALE, Fla.—Wil¬

Edison

and

enjoying rapid growth,

Fahey,*

Clark & Co. and prior thereto was
with Weil, Roth & Irving Co.

(Special to The Financial Chronicle)

and

sity, Lewisburg, pa., Aug. is, 1957.

volume

are

War

re-' rewards

.

•From

excellent

an

C. J.

of loans. In spite

Jersey, includ-:

^gas 74%;

TThe

IS

Laurence M. Marks & Co.
Tucker, Anthony & R. L. Day

H. Hentz & Co.

W. C. Langley & Co,

Swiss American Corporation

,

,,

;

The Commercial

(908)

16

output include Seaboard
Amerada, Texas Gulf
Producing and high-priced
Superior Oil.

Aie We Too

up

Oil,

THE MARKET... AND YOU

Johns-Manville,

By WALLACE STREETE

a

Americans

Stocks continued to bounce hope in this issue is dissolumerger jvas agreed upon with
from dispirited sinking spells' tion of the court injunction
Bestwall Gypsum, the pinch
to technical rallies for the against completing, distribu- jn home
building presumably

straight week. In the5 tion of the 6% preferred to
process, the list this week set: eliminate arrears. This court
some reaction lows among the release
is slated for early
industrials
while the rails September. ..
subsided, on the average, to • Once the financial contrethe poorest posting in a couple
temps is straightened out, the
of years to chill what bullish
common
of Allegheny, mow
sentiment that might be
available at a sizable discount
.

around

the

over

carriers*

from

So far the

signs didn't convigorous upturn in
business generally for the
third quarter and increased
bpying by the auto titans as
they prepared for their new
model season was greeted
calmly by the followers of the
(

firm any

steels.

asset

have

a

value,

better

much

ment status. Its

of

ought

invest-

large bundle
should

Pacific

Missouri

to

build up additional value as

the carrier, only recently discharged from receivership,
starts
to show substantial
1.
earnings. In addition it has
In addition it has
important holdings in a sub-

keeping both restrained and
j0hns-M a n v i 11 e definitely
at times, including ap-

easy

lows
list. The latter hasn't fared
too well profitwise but by
sagging moved its yield well;
the

on

pearances

new

_

j-j

mnro

«

me

a

vxiov

A i

rc

rafts

about the

are

ity operations through 1960.

leading example of the fact
that

market

the

in

tmps

American

Electronics

re-

7 ~<,£

far

paid at

we

that
We

in^heir fortmie^ and
in

are

really worth while.

Americans have grown too

complacent. We accept all of the
privileges that are ours without
remembering the price that was
paid for these
privileges i n

Hieir ioriunes ana

secondsecona

of the other privileges

some

individual has in this
country • of ours. Most of

an

that
great

these

privileges are not available in
other country of the world,

anv

and

yet we
Americans take 'these
the form of privileges for granted.
The way
hardships and that we treat them indicates that
the

on

we

have probably lost our
sense

of of values and forgotten the price

part

who

someone

obtained them

that

paid

was

in

order

that

we

and our children

might have these
for. us.
If it privileges.
It is my belief that
had not been Americans
should be more apfor
such
pa- preciative of the privileges so that
triots
a s ythey might not wither
up and die
George Wash„

i

n

g

t

on,

Thomas

lin,

and

J

e

f-

ferson, John
Hancock, Benjamin Frank-

T. Allen Glenn, Jr.

scores

and

of

scores

' '
Free Man
v First of all, I want to
mention,
the privilege that is ours of being
a free man.
It is only less than
100

in

ago

years

when there

this

were some

country

people who

othe^ in tbe 9ol?n^al day?,vf °Vr were slaves. About the only thing

country,who had been willing to that they could call their
stake not

only their fortunes but

their souls.

also their lives in order to achieve worldly

own was

Their bodies and

possessions

they

freedom for the people of the have had belonged to

any

might

someone

colonies and those who came after else.^They.were bought and sold
them, we would, not be a free
nation today. The patriots who
suffered with General Washington

the public markets the same
as cattle. Today we have no siavery in this country, and every man
in

at Valley Forge, and on the many is free. He is free to do as he
as he does opt

fettle?elds of the Revolutionary pleases so long
knew the value of freedom>

_____

o

;

j

iftcc

,

__

whether

sacrifice

Gambie-Skogmo at the low-;
priced end of the list has been •
neglected enough marketwise'
g0 that,4despite its low price'
tag, it has merely wandered
over a range of less than II2.
points for the year. Yet its
business is fully up to last:
dear's level, as a slight
year'3 level, as a slight in-

;
crease in net income for the
Aircrafts, after being rather sidiary investment group first half indicated. The 60thoroughly deflated by dis- handling assets of around $2 cent dividend, covered twice
foil,
uuuAn
1 nee
armament talk and Stretch- billion.
over m 1955 and 1956, will be
OUts of existing work by an
backed by the same margin
economy-m i n d e d Congress,
Good News a Duel
this year on present earnings
were able to stage something
! Newport News Ship fared projections.- This makes it a
^f
Will,,
for
bnnnilv whpn hones
^j:
of a rally. Russia s refusal to far more
happily^when n pe candidate for some sort* of
go along with < proposals to were high, but when the com- dividend bounty in the future,
ban atomic energy tests was pany actually received a con- It has consolidated its applithe spark that generated at tract for an atomic-powered ance merchandising stores
;r
'
ineiLiiciiiui&iiig & tux co
least temporary strength in aircraft carrier the r e was and has been meeting keen
the defense section.
little left to celebrate. It did competition successfully.
push the company's backlog
n.AUw.U
J Excessive Pessimism on
across the
half-billion mark APPllallte Outlook ur gl te^
f
Appliance makers generally
Aircrafts
which, in turn, assures capac- Viqvp hppn fnrppastin^ a turn
-

one time to gain these privileges and asks
have lost our sense of values regarding the things

sonal price

1

into the 5% bracket,

•

pa.

Pennsylvania banker wonders how appreciative and mindful
are of the great privilege? that belong to them and
the sacrifices made by others. Mr. Glenn recounts the per¬

i

:

fourth

29, 1957

Complacent?

National Bank of Norristown,

President, The Peoples

prime in¬

grade issue, has
shown little life even after a

,

Thursday, August

.

By T. ALLEN GLENN, JR.*

vestment
,

and Financial Chronicle..

and they were willing to pay the

infringe
one

the rights of anyfree and happy life.

upon

else to

a

price

so that such freedom could Truly, this country is free and
be achieved for themselves, their everyone has an equal right to
children, and^ their children's life, liberty, and the pursuit of
c hi Id r e n. To them, patriotism happiness. Such freedom is not
nieant more than mere lip

serv-

found, for instance, in Russia or

ice" 1he sin£"greverence and re- «he countries known
of patriotic songs lite states of
was d0ne with

as the

the .Soviet

half prospects are far spect because they had risked

Such

is

freedom

at*

Union,

found in

not

Ported sales for the firsj; half brighter. Some in the industry their lives for the privilege of China or in any other parts of
than 150% above) last have even been on record as sin^ing such songs of freedom. Ehrope, Asia, and the Americas,
pessimism, than for the vea_
_d earnings expanded
Even prior to the days of the In'those countries, while there
middle-of-the-road approach. mnfiTnrtfl.niv.
^-Pa™**1 saymg the .worst is over. Revolutionary War there were may not be actual slavery by
comfortably.
Heavy inventories have been those people who came to the ownership of the body of a man,
yL i
In neither the case of New- worked off in specific cases shores of America in prder to have there is a total lack of freedom of
ment, an end to missile ^nd
j* neitner tne^case 01 inew
u summer the right to worship God as they the individual of life, liberty, and
plane wprk, and heavy red P01^ nor °* iVm
AmericanoKU in ana even somptne summer pleased we are all familiar with pursuit of happiness as we know
Elec- doldrums in new steel buvirAmVc
more ior excessive

optimism,

more

or

—

...

.

.

j.

1

a.-m

Yet

some

down
down

have been ^narked
draqtieallv

hv

arasticaiiy ny
between 20 and 30 points re-

cently.
,;

,

t

;

.

.

t

,

The office equipment field

has

shown

different

probemphasis
by investors on the leaders in
the field although some at-

lem

-r-

a

with all the

tractive situations

elsewhere.

are

around

Smith-Corona, for

instance nosted
instance,

posted a now hiffh in
a new nigh in
sales for the -second year in a
row

cal

and its profit for the fisperiod also was a record,

move

that

a

20-point

scale

'

.

•

_

_

•

P*

nh

i

_

decisively despite news ing by appliance makers was
a better market cli- noted. The giants like General
a
" ai

in

Pirt/1urt

.

u

mate would almost guarantee Electric and
cause

better action.

A

Aw

«v»

amJAM

"L

1A

ll.

*

•

1

_

X

"I

_

1

-.P

_1„

_

Westmghouse be-

of their varied activities

have held up

^

aI'

J

u,,.

a„j

earlier settlers of this country, first privilege that we Americans
These people, too, risked their have and for which we should
lives in order to obtain this great eternallv thank God is the
privilege for themselves and their lege of being a free
posterity.

"Their"" attendance^at iC6C VA

pnvi-

a

bit their places of worship was often
Free From Fear
Similarly Columbia Gas, better than the smaller out^hievecl by great hardships and
The second privilege that we
which has a long record of fi+o
w
often hy the use of firearms to have is that of being free from
ins.
wesungnouse, ior one, defend themselves from the sav- fear. I recall
looking at a televir
investor n e g 1 e c t, reported
Will, supply the propulsion ages.
sion program last Fall—it was one
sharply higher earnings^ last mechanism for
Newport
of the numerous "quiz''programs
year and expectations are that News'
atomic
carrier
The
' T°° C®m»hfe®w
that are typically American. The
But today, We Americans don't
it will turn in comparable recontestants were a refugee coupiq
suits this year. Its yield that
.
^ " Iw
really appreciate the value of from Hungary. The master of
aDDrOaches
approacnes 6 vo is both above Whirlpool and Borg-Warner, what we; have in this country, ceremonies, in questioning these
O % is Dotn aoove
consequently w e r e in the an^- we forget the price that was people, asked them what was then;
average and even stands out
\ ^
.
- naia ^
^
a„,
in the utility group despite a f e
V
rather drastic case .of "tight -.a c z?rf
.
sing our national
marketwise

a

.

„

„

-

.

anthem

and

w

The oil section

.Even-a

was

international ..bilver

where the stock

;

a.

Oils Undistinguished

latelv 'available at around the
middle of the range.
stock split proposal,

J*

-i

Tlie^tock lias bail a mundane division, jitters elsewhere in a
money"•
market life, however, ranging
over

_

ccnoc

tirnrit

rather
ratner

"I

deflated

and

even

is

is

;

a

pri2e fight is starting,

well ball

backed

far from down To a new low Sgain this

in

perfunctory sort of way~when
or

a

a

How

a

couple"h^*7led

base-

game begins, or upon some

other occasion.

But

we

do

not

had

this

significant

was.

iourneyed

all night on

their

children,

carrying
f6rded

a

SffitaSf tte.

river

had been

and

—

,

This

foot

had

shot

^

usually distinguished. Restrictions on week for the poorest standing them. And then, to many of ul the
sure fire in
spurring an issue imports, plus increased. pro- pricewise. Since 1954. The right to worshipas we please means ^ related how the .woman had been
to spirited action, was greeted duction allowances d o m e s- h°°k
value of nearly $94
_X7t_0 .s0tay bome from seized and dragged off to
calmly by the issue.
\ tically did little to solve the against a market price below
had t
fght-STav'a
^
Sddie

^hnot

$40 makes it

a case where
Alleghany Awaiting Court
an(j kept investor interest re- pessimism seems to be rampAction
strained. The 10% cut in im- ant. Caterpillar Tractor is also
Investment companies with
ports below a base period ac- down sharply from its peak
Wide diversification have
tually runs to around 22% of of nearly $100 although the
been having trouble in tune the level that the
importing benefits of the highway buildwith the rest of the market,
companies had planned. The ing program have yet to make
Alleghany Corp., however, chief importers of oil are their weight felt.
All

.

Problem of scattered oil gluts
sudujcu

xiit;

xyj

o

v;ul

aii

iiai_

has been

more
buoyant than Texas, GullyCalifornia Standof the others and, at ard and Atlantic Refining,
times, able to run counter to Conversely, the domestic profV»e»
marlrot
+U
the
market
trend. The big ducers that will have to
step

many




J

*.

'li

u

j.

j.

c

^

o'X
afr^ t°

tremendou/price-for th2

M^yh

^llf£e®?!
of Thell great ^ privillees
®

their closest, friends for

lege

priviof going to church, or for the

To put it briefly,

are

just

too

we

Americans

complacent

about

talk
^1L

to

were

or

neighbors

their

uiuacot

even

^fear^

this
1®* Sid would be
/horn,
lomtov^ly Stalk »."{g
what
thev

f

they

"
"
pleased,

say

what we have, and we accepTour pleased "without fear tliat
privileges without realizing their would be dragged off to priso ^
|The views expressed in this glfat
'
doing so. It is only sbgh qLjiar
article do not necessarily at any
I would like to review with you than 200 years ago whe ^
^
co™c\de™ith those of the
a talk by Mr. Glenn before the conditions prevailed in
is ^
.

Chronicle.

as

They are presented
those of the uuuw Viuy.j
J
author only i

.

■

Sixth Annual Pennsylvania Bankers As- try.
sociation Summer School, Buckneii university,
Lewisburg, Pa., Aug. 22,

1957.

When
r*

the

colonists

j

nn

v'

naoe

Continued OTl Va9^

Volume 186

Number 5668

...




The Commercial and Financial
Chronicle

(909)

Melvin Janes, a

friendly, sandy-haired man
early forties, may well be the world's only
trackwalker with a doctor's
degree.
in his

Since

1953, Dr. Janes has trudged
many a mile
along railroad tracks from Maine to Texas. His
mission: to check with his

I
i

power

\<

s

v-, ;
§sis f§

of

a

Weeds
a

fire

own

eyes the killing
unique railroad-bed weed destroyer.

are a menace to

railroad

men.

They

are

hazard; wheels slip on them; they hold

moisture which rots the ties and undermines the

IMP

roadbed; they make maintenance difficult. More
'

s

X

* $

than 50 kinds of weeds

grow along the tracks.
easily and stay dead—but many are
toilgh for ordinary weed killers. •

Some die
too

mmmm

When Mobil scientists
new

Wm

developed a promising
oil-based killer—Agronyl R—Dr. Janes

took to the tracks to check it out. It killed the

weeds, all of them.

Moreover, it's heavy and
adjacent farmland. It leaves a
film that
discourages new growth (and also helps
keep the tracks from rusting).
You can't
buy Agronyl R herbicide for your
doesn't blow

on

to

garden weeds. It wouldn't work in

your

sprayer anyway. It was created for

specific job

—and it does that
In the same

a

home

job without equal.

way,

Dr. Janes and his fellow

scientists

develop countless other Mobil products
for the
special needs of your business, your car,
your home. Whether it's a motor oil or a gasoline
or a

gear

you can

and

I

lubricant, it's unique in its field. And

depend

on

product of Mobil's
For

I

more

its quality —for it is a

master touch in oil.
mgti

information about Mobil research

development activities, write

to Room 2400,

Socony Mobil Oil Company, Inc., 150 E. 42nd
St., New York 17, N. Y.

-

>'

'

^ "- V;

^

rnmmmmmm H

SOCONY

MOBIL

OIL

CO., INC

Leader in lubrication for 91
years
'1

-

*

n

18

Chronicle

The Commercial and Financial

(910)

Thursday, August 29.
1957

bs

of

stock

common

presently

out¬

the

Both

News About Banks

thorized

NEW

BRANCHES

OFFICERS, ETC.

Bankers

and

REVISED

and

stockholders on
Aug. 8 and were reported in these
columns Aug. 22, page 797.
Sub¬
scription warrants will be issued
on or about Aug. 46, and the right

CONSOLIDATIONS
NEW

dividend

stock

the subscription offering were au¬

CAPITALIZATIONS

by

empire at

will

noon

The

'

Bank,

Manhattan

Chase

York,

business

for

opened

Aug. 26 in its new quarters at
33 East 23rd Street in Manhat¬

on

tan.

.''A stainless steel

the few
will

only

northern

to adorn

one

floor.

Executed

known

artist

;

a

the wellMullen, the

by

Buell

depicts the role of banking

civilization's

in

of

one

the world

bank,
51 feet by 14 feet of the
wall
of
the
banking

cover

mural

mural,

its kind in

of

and the

operations
Street

Avenue

Fourth

after

Winton

Brewster

has

been

offered

Corn

of

New

Aug.

a

M

n,

undivided profits and
re¬
will exceed $6,000,000.

1957,
earnings after taxes and be¬
amounted

to

with $159,295 for the same
111 1956 or a rate of $1.42
share on 112,000 shares.
dividend The CanBank
and

stock

By a

Trust, Company,
N.

a

National

Carta ndaigua,

Y., increased its. common

member of

ital

stock

the bank's In¬

000

effective Aug. 12

vestment

shares

Di-

in

par
W.

of

at

Brewster

he has been Assistant Vice-Presi¬
dent since 1952.

Chemical Corn Exchange Bank,
New

its

York

Aug. 22

on

quarterly

dividend

increased
to

571/2C,

payable Oct. 1 to: shareholders of
record

the

at

Sept. 13.
the

share.

$2 to $2.30

Directors

also

ask shareholders for

increase

to

stock

business

of

This in effect increases

annual rate from

per

to

close

by

the

voted

authority

bank's

capital
shares to a

1,062,765

total of 6,376,950 of $10 par value.
Harold H.

Helm, Chairman, said
increase in capital¬

the proposed
ization
will

be

shareholders at

Sept.

on

If

17.

submitted

to

special meeting

a

the

(number of

the

First National

proposal

is

City

out

of five firms

earned

the

first

1957,

1956

half

of

in

more

as

against

comparable period, and
opines that a change in the busi¬
ness

cycle,

"may

not

other

down,

up,

stable,

or

become' clear

for

an¬

couple of months."

The

Letter

analysis

points

that

out

second

certificate

issued

was

quarter

were

proving and making effective as
of the close of business Aug. 15,
the merger of The First National

appraise the

Bank

of

Marathon,

.^Marathon,

N. Y. with common stock of

into First

000,

National

Cortland,

Cortland,

stock

$50,-

Bank

with

Y„

N.

of

of

merger

was.

$700,000.
The
effected tinder the

charter

and

title

common

"First

of

Na¬

tional Bank of Cortland."
At

effective

the

businessmen

of

the

;arc

trying

now

outlook for the

to
late

months of the year. Latest avail¬
able figures indicate that, while
orders

new

in

good volume,
they are not equal to shipments.
Backlogs therefore are declining.
This may be only a lull; in any
case it is not
decisive, for unfilled
orders are large even in indus¬
tries

are

where- the

downward

date

cases.

no marked change
before fall, if then,

business

trend

'for

has

pickup will

a

$332,399.

inventory liquidation to

have

industrial
The

is

capacity

prospect for

sonal

is

increasing.
than

more

sea¬

improvement in operations
bv.tho rV»t>nor~

weakened

accumu¬

lation
First

The

National

Bank

of

already noted. If the fall
upturn is disappointing, doubts
may arise as to the size of plant

time

dend and from

pected

that

the

underwritten

banking

subsequently by

directors.

is

ex¬

offering will be

by

group

It

to

investment
be headed by

an

Kuhn, Loeb & Co.; The First Bos¬
ton Corporation; Hemphill, Noyes
& Co. and W. C. Langley & Co.

^

a

meeting

Directors

of

of

of

The

the
New

York Trust Company, New York,
Adrian M. Massie, Chairman of
the Board and Hulbert S.

President, announced
that

George

E.

on

Brewer

Aldrich,
Aug. 21

was

pro¬

moted from Assistant Vice-Presi¬

dent

to

Vice-President in charge
of the Personnel Division.

J.

Bertram

of Brook¬

lyn, N. Y„ announced the election
of
Harry $>.
Springsteen as a
Mr.

Springsteen is also

Vice-President

and

Secretary of

the bank.

its

capital stock, from $400,to $450,000 by a stock divi¬

close

capital stock and total number of
Frederick

Hainfeld,

President, stated that




the

Jr.,

Board

expenditures

in

ness

shares

outstanding—10,000 shares,

value $50).

par

out

increased

five

fall

is

the

to

enormous.

demand

for

The

banks

This

other

to

inc

high

ma

In

of

measures

the increased

majority

a

few

the

revenue

lines

ings

result
often

a

as

costs,

av<

sli|

b'l

sal
del

all of

six

from sales.

experienced

declines

ere

1

and

expenses

practically

substantial

de¬

capital,

Ulli

eco¬

lines, however, the

some

absorbed;

their

gir

and

of

operating

the

in

to

distribution,

in both sales and net in¬

in

taxes

A

an

gains.

reflects

manufacturing,

rise

ne

wl:

companies

scored

production,

ms

th<

activity.

creases

persistent

and

reporting

over-all

"In

in

U.

fairly

net

hig

earn¬

aga

the rise in
combined with
of

hal

lag in sales.

a

"In

fields

turing,

modernization

industries

sqi
up

of the industry groups showed in¬

other than

in

wholesale

manufac¬

half-year in¬
net: income
by the 'll
and jretail trade, and

there

creases

Add¬
ing the continuous strength in the
service

nu

companies

by 741

showing

good

nomic

spite higher interest rates, is one
of the best indications that plans
and

stc

year

employment, national income,

long-range
The back¬

business

pa

demands

pr

tabluation

our

levels of

log of corporate financing which
come
either to
the public
or

productivity

Corporate Earnings

date

to

bil
gr

costs."

up

of

in

will

market

were

iroi

tra<
est

the service and amusement indus¬

re¬

"On

the

other

hand,

the

busi¬

changes are moderate, ac¬
tivity in the aggregate holds at or

is

to

little

record

levels,

evidence

of

and

there

shift in

any

try

quirements for highways, schools,
and other local government proj¬
ects, it seems plain that business
will

the

achieved

and

telephone

roads

strong support. More¬
fourth quarter stimulus from

wai

"The

industry is prob¬
Competition is acute, new

of

new

the

people

during

cars

who

the

of

net

couple

big

Out?

costs
on,

costs

continuing

and

rise

and

demand

in

costs

stee
yea

gin
and

increases,

but

the

stee
Sue

in

Manufacturing

acti

"For the manufacturing grouns

together

the

half year was

second

income for the
7%, but for the
alone it was up

net

up

quarter

the industry
groups showing better than aver¬
age gains in half year net income
usually
accompanied bv in"
creases
in
dollar
sales billed
only

a

for

"J

:

thos

pressure

prices,

intense

The

money.

upward

stee

■*

yeai

Trends

of

steady

|

pan

they will
anomaly of

The

the

second quar¬
the increases out¬
numbered the decreases."

productive capacity
in over-all terms, there is never¬
upon

the

slightly

exceeded
with

ter of last year

fewer scarcities of goods
materials and less complete

theless

quarter alone,

all reporting com-

down

was

$1.3

plai

whether

or

onl;
ind

•

compared with the

are

utilization

summary

as

the present situation is tvat while
and

j

•;

income of

number

question is whether
and prices can be

markets.

there

accompanying

quarter

months.

of

nur

net

ing decreases from the preceding

another

limit

companies

balance out—in terms

Balance

conflicting

upturn, stability, or downtrend
not likely to become clear

passed

n g

influ¬

It

these

may

rising

i

by major industry groups
changes for the quarter and

panies

—is
for

hal

n

5% from the
preceding1' quarter, but up 3%
from the second quarter of 1956.
The number of companies show¬

Will

Another

dec

utilities, but rail¬
i

"For the second

boom

should be in the market again."

ences

by the electric, gas,

m

half year."

bought

1955

nur

shows
the

model changes will be substantial
and selling efforts vigorous, and
more

and

growth

showed declines.

automobile

able.

Continued

groups.

was

have

over, a

tu

hr
ca

combined; net income after
taxes Of approximately $6.2
bil¬
lion, an increase of 6% ever the
same period of 1956.
About three

sufficient

programs.

er
.

•

show

accu¬

of

too

5%.

Among

—

and

prices has become dangerous both

were

petroleum, drugs, foods,

to-

doll
com

7.5 i
in

I

cent

"I

1942

held
earn

cost

The
The

Casper, Wyo.

to

stock

National
was

of

Net Income of Leading Corporation*? for the Second Quarter and Fitst Half Year

Bank

capital

common

Wyoming

of

(In Thousands of Dollars)

increased from

$450,000

by

stock

a

dividend effective Aug. 12 (num¬
ber
of
shares
outstanding—18,-

S;

No. of
Cos.

44

dim
Reported Net Income

Reported Net Income

Industrial

Second

Groups

195(5

Food products and beverages
Tobacco products

Quarter
1957

high

Per Cent

Change

Per

Half Year

195(5

195?

$162,896

Cent

doll

"F

Change

1933

9
+ 12

tion

+

shares,

par

Westminster

London,

Eng.

Bank

Limited,
that

28,990

33,709

+ 16

20

value $25).

$149,784
53,515

Textiles and anparel___

29,814

23,300

—22

Paper and allied products
Chemical products
Drugs, soap, cosmetics

64,787

8,639
51,028

—28

aver

11,938

28

000

—21

128,194

104,858

—18

doll

186,299

188,392

+ «1

374,656

3r72 735

49.657

53,703

8

102.620

116.291

+ 13

Petroleum

607,076

+ 18

1,259,232

+ 18

ran

714,372
98,783

—10

aver

300,450

5.6

9

31

$82,440

the

19

re¬

34

Sept., after 47

48

producing and fefining
Cement, glass, and stone

35

Iron and steel

29

Electrical equip., radio & television

49

Machinery

93

Other

35

Automobiles and parts
Other transportation equipment

announces

Secretary, Mr. W. A. Dry, will
tire

the

on

years

6th

of

of service.

Mr. L. R. Murray has been ap¬
pointed to succeed him.

The

Board

Bank

of

Hawaii
stock

of

Directors

Hawaii,

have

dividend

voted

of

of

the.

Honolulu,
a

common

55,000

28
44

at

22.

voted

55,000

a

the

The

close

Board

subscription

shares

of

of

has

210,203

Miscellaneous manufacturing

322,767

53,571
59.852

292,551
85,0*3
87,626
172,165
375,737
58,534
62,427

+

5

60.039

—

1

8

193.065

3

581,077

1,486 706
173,515
595,025

+

7

164,973

179,185

+

1

157,965

170.978

2
+ 9
+ 8

—18

409,899

341.037

—17

826,908

13
+ 13

—

—

+ 16

9
+ 4

+

729,618
99,010
109,628

111,416
115,183

offering

of

stock

4,543,050

4,840,072

77,939
48,183
26,532

74,474

2,368,915

42,764

25,309

37,942
27,866

13.581

15,573

+ 15

367,135

6

376,100

+

+ 10

Railroads

210,581

154,903

—26

Electric power, gas, etc
Telephone and telegraph

163,583

172,737

+

195,387

of record at the close of busi¬

Aug. 22, of the 165,000 shares

*5

—11

2,251,727

Trade (retail and wholesale)
Service and amusement industries

aLo

(one for three) at the subscription
per share to hold¬

ness

79,699
86,598

products

Total manufacturing

price of $37.50
ers

107,400

+

Mining and quarrying

business

common

metal

:

$8«, 186

+

+

T

5

defk
16

o

c

depr

«-y
age
cent

5.9

c

shares

(one for three) to stockholders of
Aug.

Long Island Trust Com¬
pany, Garden City, N. Y., is
pro¬
posing a further increase in its

equipment

$450,000 to $500,000 b ythe sale of new stock, ef¬
fective
Aug.
14
(number
of

record

The

shares.,

increased

Kelly, President of

the City Savings Bank

Trustee.

111.

Plaines,

$300,000
Following
Board

investment

How

1958.

board of

issued

come.

thinking

modification

cause

"How

be needed in many lines if output
is
to
be
sustained.
Meanwhile

will

000

the

inventory

all

"Reports for the first half

a

current

By

the deceiving association
capital stock of $700,000, divided into 14,000 shares of
common stock of the par value of
$50 each; surplus of $800,000; and
undivided profits of not less than

merger

one-

to be determined

forcing

as:

abandon¬

would

and moderation of wage

$5,000,000.

been

time.

some

early fall, however,

to

a

in

found

to

$3,300,000

being carried through.

"Expecting]

and

price and at

from

stock

are

in

common

a

capital

of manufacturing trends

Aug. 15 by the Office of the
Comptroller of the Currency ap¬
on

Des

for-five, at

outstanding to 275,-

This will increase the bank's

000.

Yet

restraint

inequities of inflation, and the in¬
evitable reaction to follow.
The
solution of the dilemma can
be

by 110,000 shares from the
now

of

-

proved by the State Superinten lent of Banks, shareholders will
be offered the right to subscribe
stock in the ratio of

capital

its

increased

have

expansion

during the
smaller than

sn

probably start the boom going
again, with more of the evils and

subscription, Bank of Hawaii

for

the first quarter in most

authorized at the meeting and ap¬

new

and

an

pains

ga

more

If it becomes

CO

shift in current thinking sufficient
long-range investment programs."

Bank of New York showed three

shares,

value $100).

of

The August, 1957, Monthly Bank

Letter of

to $500,-

outstanding—5,000

Merger

Broad Street where

ou

from $250,000

cap¬

YV>nton

invest¬

ments,

.

modification

cause

th

al¬

do

present total

the

per

in

trust

to

the

in

ment

the other, persistent demand for business capital
business activity holding to record levels

on

read

At the conclusion of this dividend

conflicting influences

with "little evidence of any

$227,-

$1.77 per share on 128,240
outstanding.
This
com¬

or

Chemical

vision,
charge

and

trj

through higher prices, the result

City Bank's study reveals

Notes such

hand, and,

For the first six months of

r.

is

1957.

ps

of

will be fewer jobs.

mulation rise and increasing industrial capacity, on the one

serves,

andaigua

He

sub¬

good showing in
first half year's corporate earnings and, looking ahead, an
indeterminate outlook for the economy in the last quarter of

to $2,105,600 and the surplus to
$2,617,040. It is estimated that by

be

and

need

difficult- to pass- on increased
costs

Economic Outlook Uncertain

the Trust Company

reserves

to

stability
The

the price indexes

x

cited.

ready

Study Finds Corporate Profits Higher and

stock issue will bring

Winton joined

1933.

for

is

of

Half Year

First National

Helm, Chairm

subscription offering, will
at public auction by the
bank; and the proceeds of the sale

growth.

scription stock will be issued as
as
practical after Sept. 26.

165,000

sold

be

.

period

H.

the

and

future

action

certificates

dividend

the

present economic

restraint

,

and the

Aug.

on

pares

by

Harold

new.

shares

Oil

26

held.

the capital of

133

an¬

nounced

business

close of

stock

fore

Bank,
York, it

to

soon

stock

stock dividend

stock

new

resulting from the

of the

30, at $32 per share, one share of
new -stock for each seven
shares

net

Ex¬

change
was

declaration

of record

stockholders

to

the

at

elected Vice-President of Chemi¬
cal

The
both

disposed of.

are

representing frac¬

shares,

tional interests

to

the

to

paid

day, Sept. 10, the shares will be

ing
W.

Full

on

Sept. 30, the total capital, includ¬

three-year interval.

a

meeting

its

at

be

ing to be held at 8 p.m. on Tues¬

The

is

resuming
the corner of 23rd

on

and

Directors,

Subject to. the approval of the
stockholders at a special meet¬

progress.

Manhattan

Chase

of

Aug. 21, voted to recommend the
issuance of 26,320 new shares of
capital stock.

terests

will

Sept. 26.

New

will

stockholders whose fractional in¬

the

subscribe

to

been

after the costs of sales have

deducted

standing.

217,560

+ 11

381,467

55.304
30.245

319,583
395,081
435,624

+
—

7
4

+ 15

S4

—13

+1!

Loui

+

filiat

+

J

14

Pierc

Mont
741

Total

__—

$2,902,932

$2,995,496

+ 3

$5,820,406

$6,150,383

+

Volume-186

Number 5668v.

.

The Com/mercial and Financial
Chronicle

57

(911)
machinery,

bacco,

electrical

ap¬

of

paratus, automobiles and other
transportation equipment. During

he

the

Offers

The

Halsey Stuart Group

nd

second

\U

quarter, however, the
gains as shown in the table were

ire

smaller in most

"Rising

sts

costs

alt

combined with

11-

associates

and

taxes, often
lagging sales, held

down

$3,555,000

the half year gains in sev¬
eral other major lines, while ac¬
tual
declines
in
half year
net

00

ng
nd

accompanied

income,

by

falling

Equip. Tr. Ctfs.

Halsey, Stuart & Co., Inc., and

cases.

in

off

RR.

cases

he

of

Aug.
New

equipment

27

offered

York

Central

trust

certifi¬

cates, maturing annually Sept. 16,
1958 to 1972, inclusive.

some

in

n-

5%

on

certificates

yield- from

scaled

are

4.75%

to

prich & Co.; Baxter & Co.; Free¬
man
&
Company;
New
York
Hanseatic Corp.; Wm. E. Pollock
& Co., Inc.; Shearson, Hammill &
Co.; and McMaster Hutchinson &

5.25%, ac¬
cording to maturity. Issuance and

sale of the certificates
to

the authorization

state

Commerce

The

isshe

subject
Inter¬

Commission.

to

is

are

of the

be

tin

Co.

to

nected

Dick &

in

SAN

the'offering

F.

FRANCISCO, Calif.—Aus¬
Roberts
with

Montgomery

Wulff Hansen Adds
SAN

are:

FRANCISCO,

the

was

formerly

Gorey Co.

v

sales

groups

ty
ds

products.
"While

current

reports
examples of the

numerous

At

afford

'profit

mid-year 1957

squeeze' now being commented
widely, they reveal also that

upon

many
new

companies
high records

basis

the

On

year.

A REPORT

companies for
comparable
sales
figures

which
are

attaining

are

this

of those

available,

now

eight

of

combining
is

average

•

increases

SIX-MONTH

EARNINGS

de¬

and

to

give
an
margin.
that

creases

RECORD

the

industry
groups
had
narrower
margins of net income after taxes
to
sales, three had wider mar¬
gins, and four were practically
unchanged. The offsetting effects
of

ON

over-all

declined

slightly from 7.5 to 7.2 cents per
sales dollar.; j.;' r.''V 'S1'-:. Iv■':v1
"Publicly reported cash divi¬

:

dend payments during the first
six months were,
according to the
U. S. Commerce
Department, 4%

higher than
against

ni

ith

|(|

a

earlier.

year

This

16% increase in the first

a

half of

1956

Highlights from the Semi-Annual Report

1955."

over

Profit Margins in Steel
fac- |;r
in-

|

the ' II
and
dus>wth
gas,

rail-

mies

f'l

"Reports

issued

to

date

for tho year ended June 30

by

35

half

in

net

for

the

number with increases.
net

income of

the

was

only

plant
om-

the

(2%)

capacity

in

"Net

income

1956.

year

to

first

an

7.2

pulled

year

1956,

steel

strike

istry

the

down

in

the

by

six-montli

third

set a

1940

and

1950,

and

:onie

"During the World War II
1942-45, when steel earnings

to-

held-down
earnings

than

more

as

a

whole

costs, fixed
selling
high taxes, the steel
clined
Cent
ngfr

9

share

are

to

under

3

were

cents per

''For

the

1933-56

entire

covered

the

steel

deficit—1933,

| ran below
averaging

this

de¬

5.6 cents.

1934,

and

total
over

1938.

a new

a

share.

wholly-owned subsidiary ^ Public Life Insurance
credit life insurance

as a

company,

marking the

American Investment directly into this field. We anticipate that
years.

1930's

and

taking

of

our

1957 senii-unnuul

is available

on request.

the

cants and for total
manufacturing
5-9 cents
per sales dollar."

margins

7

A copy

period

same

age

5

money

manufacturing,

the

13

14

a

borrows to do business. Total net earnings for 1957

subsidiary will contribute substantially to income in future

report

In

13

13

on

tne steel ratio

17*year period 1940-56, the

14

rates

Excluding the generally

depressed

8

4

achieved in the face of increased interest

August 1

were at an

of June, 30. It is noteworthy that earnings of 70 cents

industry margin

17

15

lending subsidiaries

24-year period
by our tabula¬

16 of the 24
years,

10

5

any

40th anni¬

dollar.

18

9

as

our

first-half period. Receivables outstanding

expected to exceed $1.40

entry of

averaged only 4.5 cents per sales
dollar, with three years of net

2

high for

our

sales

tions,

13

a new

history in the first half of

and

average

22

1

company

Co., began operations

rising

prices,

were

On

years

industrial
bv

high

which the company

7.8

12

18

382

Total loan volume developed by

record for any

all time

compares with previous peaks of
7.5 in the full year
1937, 3.1 cents

both

period in

versary year.

quarter.
line with

in

cents in 1955.

in-

413

the

are

ver-

ed—

.63

4,546,693

Earnings of American Investment Company readied

full

"The 7.9 cents margin per sales
dollar in the first half of this year

in

$

4,575,823

.

M'( !

those realized in other periods of
active steel production.

up

subsidiary offices.

shares.

3,108,840

.70

half

for

cents

margins

Such

the

common

$

average mar¬

with

pares

out-

the

3,418,511

share.

reporting

the

gin of 7.9 cents per dollar of sales
and other revenues, the same as in
the first half of 1956. This com¬

uar-

ouns

$

per common

meet

the

represented

as

that

in

companies

the

$

earnings

>

of

steel

10W-

despite

order

•

3%

ding

$ 20,937,032

nation's growing demand for

steel products.

the

$ 23,253,132

Number of

industry's peak expenditures of
$1.3 billion last year for
enlarging

[one,

income

.........

Number of

up

oups

slightly

$181,443,679

Earnings

Combined

group

nary

and

$203,503,675

Net

the

slightly

income

exceeded

year

$145,481,449

outstanding

Gross

The

companies having

decreases

$156,470,557

Loans

industry increased

wages and prices last month.
number of steel

1666

Volume of business........

iron and steel producers have at¬
tracted more than the usual inter¬
est because that

1967

for

steel

aver¬

was

5.7

American Investment Company
OF

With Merrill Lynch

8251

MARYLAND

ILLINOIS

AVENUE

•

ST.

LOUIS

24,

MISSOURI

(Special to The Financial Chronicle)

SAN

Louis

FRANCISCO,

Calif.

filiated

with

Pierce,

Fenner

Montgomery

Merrill
&

Lynch,

Beane,

Street.




Principal Subsidiaries:

—

E. Bartolini has become af¬

301

Public Finance

become

and

con¬

&

Co., 460
members of

Street,

York

Exchanges.

billed, were experienced by five
—
textile
and
apparel,
paper,
chemicals,
cement-glassstone,
and miscellaneous
metal

be

a

has

Sutro

Pacific Coast

Mr.

Roberts

—

Nicholas S. Rizzolo is with Wulff,
T
Hansen & Co., Russ Building.

Merle-Smith; R. W. Press-

New

Stock

Calif.

i

(Special to The Financial Chronicle)

secured

by
665 all steel self-clearing
hopper
cars, estimated to cost $4,555,250.
Associates

Joins Sutro & Co.

19

Corp., Public Loan Corp., Domestic Finance Corp., General Public Loan

Corfp.

with

Walter

C.

and Financial Chronicle

The Commercial

!0

could

would play havoc with portfolio

strengthening of this system
It is wholesome that we
should
explore the various ideas pre¬

This Week

appendage to underwriting functions.
Happily, today, no company of consequence is so investment conscious as to neglect its underwriting. But while the investment
division of the business is secondary, it is vitally important to
the shareholder. This is true even if only because his dividends
come from this
part of the business.
But there is more to it,
for a capably handled investment portfolio is reflected in a com¬
pany's build-up of surplus funds, and these with capital are the
they

should

rate

as

'

handling of an insurance company
portfolio one should go back a number of years in order to obtain
a good view under all economic conditions.
In this week's study
we
have gone back for 20 years, as the management that has
acquitted itself well in that period is likely to be able to meet all
manner of economic ups and downs.
And it quite well proves out
that where a company shows a good underwriting record longterm,; it somehow manages to come by capable investment per¬
To appraise properly the

v

>

finance

economic
to

1

But what

growth
invested

period is

a

over

assets

the

at

far

personal contacts and
intimate exchanges between those
of us who carry public responsi¬
bilities are the surest guarantee

the

period.

of

that

The invested

into

assets

realities.

advantage over those that.are somewhat heavy

some

in

;

-

in Value

of Assets

July,

•

Aetna Insurance

;

$12,473,000

Continental
Federal

Insurance.

Insurance

Fireman's

Fund

Falls

Great

American

_______

1

\

j
i
I

.......

Insurance

Hartford Fire

.

73

___

Westchester

l

-

Aetna Casualty
American

Re

American

Surety

Continental
Fid. & Dep.

Ins

Casualty
__

...

Bond

Seaboard Surety
U. S. Fid. & Gty

of

44

May

ence

53

in

Panama,

Members
Members
120

New

York

American

Stock

Stock

Exchange
Exchange

Telephone:
Bell

BArclay 7-3500

Teletype—'NY 1-1248-49

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

Specialists in Bank Stocks




Confer¬

this

Confer¬

in

themselves.

•37

tinue

7.52

13

same

and

conviction

*

•

related

11

ress

104

1

21

each

of

continue

19.19

36
49

other

and

prog¬

member.

57

finance

92

11.96*

37

1.07
20.79

162

13.79

28

19.80

113

9.71

39

good

or

of

economy

our

gov¬

presumptous

for

members

newest

me,

of

one

of the

the

group,

to

claim extensive personal familiar¬

ity with the details of, the
tions which
,

delegation
will

matters

of

BANK

forward

Government !■

Kenya Colony and Uganda
Office: 26 Bishopsgate,
London, E. C. 2.
West End (London)
Branch!
13, St. James's Square, S. W. 1.
'
Branches in India, Pakistan,
Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and SomaliHead

land

Protectorate.

Authorized Capital

Paid-Up

£4,562,500

Capital
Fund__„

_£2,851,562
£3,104,687
The Bank conducts
every description of
banking and exchange business.
Reserve

Trusteeships and Executorships
also

undertaken

ques¬

shall discuss.

we

of

the

United

its

express

our

views

The

States
on

the

agenda, .and I
will find them

you

looking and constructive.
Role

we

all

our

certain

are

come

came

here,

Before

we

my

gov¬

ernment reviewed and

considered

carefully

that

expressed
1954

and

light

of

the

views

were

by the delegations in
weighed them in the
the progress we have

made

in

three

years

the

interval

of'nearly

since

We welcome this

that meeting.
opportunity, in¬

salient

a

operative
50

short

first

The

conviction

and

of history has been little
remarkable.

of

ample,

ered

the

importance

of the

power

State,
have

would

State

.,

exists

the

as

the

The repeatedly suc¬
application
of the Rio
Treaty, to settle disputes between
American
States
and
the out¬

Com¬
to

standing

lished

We

homes

for

satisfaction

our

of

our

aspirations, in

America

better

a

all

role

terprise
life

has

of

demonstrated

of the

system

our

competitive en¬
in the economic

hemisphere. Its

ise for the future is
Just

the

as

truth

climate

in the

tem

of

of

the

even

flourishes

prom¬

greater.
best

in

political freedom,

economic field

competitive

the sys¬

enterprise

the
to¬

fact

has

economic

great

significance. The assurances now

defense

provided by our common
system offer

us a

dramatic oppor¬

tunity to give greater

emphasis to
that can

those economic activities

peoples.

better the lot of our
'

Military expenditures, by.\their
nature, act as a brake on
rising living standards, and for
that reason they should be held

very

to

History

so

for

us.

vital

This

our

our

education, for

peacefully

live

to

gether.

promote them be¬
for the better

citizens, better
families, better
children, greater

beyond

Americas

make

employment of

for

have estab¬
doubt the. desire

ability of the countries of

and

freely and fully, in all
the ways that enrich human life
and
exalt its spiritual
meaning
and dignity. And this is what we
mean when we speak of promoting
commerce,
industry, agriculture,
and
development of all our re-

Committee

Peace

settlement

peaceful

develop,

Inter-

the

of

services

American

tunities which will enable him to

they

jTest of the world and among

cessful

dignity as a child of
God, to preserve his rights as an
individual, and to provide oppor¬

cause

pattern for the streng¬

a

ourselves.

respect his

resources.

has

security

thening of the entire free world.
Our purpose is peace, both with

and

man

as

This con¬

all.

on

collective

of

served

believe.

us

for

attack

an

cept

are

enhance

a

mously agreed that an attack on
any one State would be consid¬

is

objectives we seek.
objectives that can be
defined only in terms of human
well-being and progress. We all
agree that man does not exist to

They

ex¬

security which was3 sealed in
the Rio Treaty of 1947. We unani¬

the

to

as

For

developed
in
the
hemispheric approach

we

to

to

this: No difference exists between
us

of our co¬
during the past
against the back¬
part

effort

years

ground

meeting. They are convictions
I have held throughout a

our

we

all follow and

can

ultimately bring us to
objective.
method of approach has

This
been

profound

which I

we

common

Americas
There

convictions with

en¬

we

discussion

of

which will

Freedom

Economic

road

a

When

problem or engage

field

new

a

Why

that it is

breed dis¬

us or

us.

new

a

achieved.

believe

I

do not let differences

we

among

seek

aspects, for freedom is indivisible.
Political and

inter-national

eventual solution

an

true?

counter

in all its

guard freedom

the

On other problems

opinion divide

trust

our

else

in

found

toward

because

or

resources

our

use

this

Some of these problems

this

is

goods, Nor provide op¬
portunities for work, let us above
make

the

In

had

have

we

that has yet been

raw

ever

of

level

a

adequate
of

us

in

ward to

that

will

the

the day

changed
permit a sub¬

when a

world situation will
stantial

provide an

of defnse. All
Americas look for¬

posture

reduction

of

our

large

In the
must all

military expenditures.

meantime,
do

however, we

everything we can to

reasonably

our

control

expenditures * in

aw

erl
ou
av<

tie
Pe;
no

Mi
it

responsibility,

promises to yield most in the sat¬

this

to express to you the fundamental

isfaction of man's material needs.

approach which we bring to the
questions before us. This Con¬

This

dent, will continue to scrutinize
our military budgets in an e"01,

t'in

.accomplish savings that would
resources available in eac

er£

deed,

we

feel it

a

ference represents another impor¬

i-

only

short,
Economic

INDIA, LIMITED
the

raw

living

have made the greatest prog¬

ress

re¬

among

almost

The

the task of in¬
creasing the effectiveness of their
cooperative efforts? It would be

6

been

we

this

are

munists

ernments go about

to

coun¬

natural

are

prede¬

interna¬

known."

ever

the Americas.

the
favored nations in the world

Our

How then shall the ministers of

40.69

.

Some

limited

Others

will

partners.

9.22

welfare

has,
beenr
and
to
be,
that
of

approach

26

the

welfare

the

to

that

of each member is

progress

87

11.78

that

collectively, forming one
of
the
world's
most
important
communities, have coipe to the

110

50.55

demonstrate!

to

nations

•

90

Bankers

in

diversity.

have

lifetime.

54

13.40

tries

find

in

have found their first solution in

which

32.84

4.82

natural

common

16.23
+

ican countries one by one we

greater

53
*

NATIONAL

BROADWAY, NEW YORK 5, N. Y.

the

or

ends

as

earnestly hope

Laird, Bissell & Meeds

put

206

26.56

examine the economic

we

69

The important question at this
point, of course, is what will
happen if we go into a sustained bear market. Obviously there

STOCKS

be

possible.

as

36.22

1,284,000
51,981,000
5,517,000
—929,000
3,961,000
17,903,000

INSURANCE

of the

many

would

ex¬

46.63

19,367,000
13,403,000
56,963,000
9,569,000

of

Eisen¬

publicly

promtly

as

indi¬

the

Rather, each Conference evidences
strides forward to
our
objectives. What is really
important is the fact that we con¬

:

39.21

When

75

-

12.26

and

26

Quitandinha,

in

ence

31.25'

•

society.

We should not regard the meet¬

ing

130

3,799,000

BANK

of

directly

President

state.

on

into effect

v

8.28

24.97

not

■

in

welfare

the

of

of

approach openly many
problems for which solutions had

of

fields

all

successfully
..

community

countries in the

characteristics of the Latin Amer¬

and * its

most

adventure

has

area.

a

of

courage to

respect. Some countries
entirely producers of
materials. Others produce not

25.20

22.77

Presi¬

in

States

recommendations

60

„•

.

of

Committee

American

chiefs

49

15.06

Inter-

strengthening the Organization

hower

244

21.47

10,766,000

the

and

1956,

pressed his hope that

24.22

72,292,000
11,383,000

_

U. S. Fire

Mass.

58

13,436,000

_

81

49:76

n

62,429,000
Home Insurance
;r:_ 124,999,000/
Ins. Co. North American 248,455,000
National Fire
18,111,000
National Union
4,511,000
New Hampshire *
J.
10,624,000
Northern Insurance
11,372,000
North River
12,987,000
Pacific
6,568,000
50,553,000
Phoenix __
Providence Washington
1,926,000
St. Paul
37,711,000
Springfield

!

8.01

.1.

Security

!

190

37
•

the economic development of each

"the

hemisphere

materials but also a
vidual. As a result of the commit¬
wide
variety
of
manufactured
tee's
deliberations,
a
series
of
goods. But admidst this diversity
recommendations was drawn up
let there be this unity: However
and
submitted
to
the
various
we
develop our economies, how¬

71

| 38.89

42,942,000

Glens

Hanover

% 20.65

T

Firemen's

j

20,648,000
194,464,000

199,044,000
18,453,000
1
45,180,000

Fidelity Phenix
Fire Association

]

_

25.11

21,636,000

Boston Insurance
*

12.63

3,767,000

Ship____.

place in Panama

cooperative effort which

22%

14.33

30,308,000

American Insurance
Bankers &

$12.48

\

world

Latin America is the sum total of

most

of

>

5,731,000

Agricultural

tional

In
of

area.

development

economic

fact,

sources.

affect

1

un¬

effort

States

as

sustained

were

America

Latin

great homogeneous

one

velpped fre.m it to consider ways

Ratio to Invest. Assets

■

took

American

of

Twenty-Year Increase

the

united

American
• cessors

talk

sometimes tend to

we

dential Representatives which' de-

start of the period Con-"
performers.

the ratio of gain to invested assets at the
tinental Casualty was one of the better

recall

and

if

and

of the individual

which

lics

conference,* best

this

faces

■

all

strongly

is

though

as

*

precedented meeting of the chiefs
of state of the American Repub¬

in bond holdings, although this is not borne out by Continental
Casualty, whose lines of business require that a substantial pro-'
portion of assets be carried as cash and marketable bonds. In

,

•

-

will

You

resolution

meetings of this kind, when
consider
economic develop-

ment

per

,

holders have

our

second con¬

a

'
how can qui*. coun-; our people.
President Eisenhower has chaiv
most
effectively j develop •
acterizcd the Organization of
resources? At inter-Ameri¬

tries

we

transformed
satisfactory

objectives
practical
and

and

that

therefore,

can

efforts will be successful

our

to

me

viction which I hold

country

their

direct

that

share, is adjusted for whatever changes took
place in the period in the way of stock dividends, splits and
rights, it being assumed that rights were .exercised.
Equity

figure, of course

*

He shares the convcition,

matters.

Resolving Differences
This leads

we,
as
reasonable
achieves i material
men of good will, and as the
rep¬
by developing its human*
of
our
respective
and material resources. There is.; resentatives
no other way to
do it. The ques- - peoples, bring to bear on it the
A

President Eisenhower about these

investment
per-share change to

of the

with

length

us

progress

must

we

of

any

brought to this

conference.

specific which has been susbtantiated in
actual experience.. This is that
decisions in business and in
gov-^* there is no
question incapable of
ernment play the major role.

lion

at

talked

have

I

concerns

as

ratio

the

start

as

which

heart

and

do¬

perhaps bet¬

of

effect

cumulative

the

words

by

bring to cur tasks.

to company there can be a great difference in

does have meaning

can

of

ways

are

which

alone might have

questions
take stock and

long range

which we

on

those

than

we

as

goodwill are the qualities of

and

table is given the 20-year change in the
value/ of the assets of a group of leading fire-casualty companies.
This rincludes, besides the annual mark-up
or mark-down to
market (or to convention values, where, these are used) of the
company's assets, plus any realized profits or losses in the period.
Of course, the dollar change by itself has 110 great significance

1

dealing with funda¬

are

and

mental

shall try
they really

alone, nor
can they be laid to rest once and
for
all
by some dramatic pro¬
nouncement at this or any other
conference. Patience, persistence,
with

mind

as from
company
financial size.

not

and

dealt

In the accompanying

t

nations' ship. We

our

come

ing things which
ter

dis¬

hope that from
thodghtful exchange

will

views

our

the

sincere and

of

economic

cooperation and business partner¬

we
as

long history of

might wish fruitfully exchange thoughts and
them
to
be.
They
are
many, points of view. But we recognize
that
in the
economic field the
they are difficult, and they are
march of day-to-day events and
continuing. They are not to be*

sonnel too.
•

tasks

our

see

are,

_

;

shape
policies,

-to

helping

in the continuing evolu¬

tion of

a

approach

cussions with

tant step

strongly reaffirmed the

Aramburu

validity of these views. As prac¬
tical men with responsibility for

better than

economy and

not exact sciences.
Let

are

therefore,

us,

a

knows

one

that the fields of

we

Questions

the

"policyholder's surplus."

,

how

No

ures.

a

And Economic

of

finance or
difficult it is to
choose between alternative meas¬

Latin-American Financial

Insurance Stocks

—

knows bet¬

one

minister

a

economy

time, in the roaring. 1920's, when some insurance
companies seemed to stress their investment operations and to
consider them more important than underwriting when, actually,
was

No

us.

than

ter

first page

By ARTHUR B. WALLACE

There

contribute to the
growth

can

sented to

Continued from

V

and

large blocks of equities.

especially for the holders of

Bank and Insurance Stocks

we

A bear
holdings,

liquidation of large holdings.

be wholesale

never

market of importance

"

Thursday, August 29, 1957

...

(912)

system

"produces

what people want most.
I

hope that at this

most

of

1

conference

to

area.

make

All

of us,

I am conn-

on

di<

957

Volume 186

Number 5668

The Commercial and

,..

Financial Chronicle

(913)
economies for the kind of
constructive development that ad¬
of

our

economic

vances

No

well

fairs of everyday life.
You know
how it can lead a whole
people
into competitive efioits
to

being.

protection

Diversity in Progress

than

My third great conviction
the progress and welfare

that

is

know

American State is directly

every

to the progress and

related
fare

of

each..

ever

be

indifferent

lems and the

of

Each

None

of

to

us

the

has

personal

a

each of

and

miliar

members of

know

great American community
clearly lie in pursuing a policy, of
cooperation.

cooperation is

a

in

of

of

decade with

ede-

it meant in

•ully

with

rna-

the

the

fam-

the constant

ten¬

how

exports

may

be

dis¬

many

of the other American Re¬

publics to deal with this

menace

has

in

for

The

ment

other

government

well

these

my

and

foreign invest¬

one

limited

aspect

of this broad
program of economic

development.
transactions

Inter-American
are

segment of the
economic

themselves

a

broader fabric of

relations

in

the

free

world.

of

first,

rest

of

American

When

in

speak briefly, however,
of
the
trade
and
investment
transactions
between
my
own

we

years

met

at

1954, imports into

States

reached the

from

reached

the

Latin

Quitandinha
the United

America

impressive

rate of pesos

3.5 billion.
they reached the record
our

me

in recent

highest levels yet recorded.

pesos

Trade and Investments
Let

flow

generated

have

of

foreign trade
only

The

our

also

agencies

We

is

is

by

imports from the

our

the

us&d

Republics.
dollars

available

States; second, by
our
investments; and third, by our
loans for economic
development.
In each of these
categories we

efforts.

ments

by

become

effectively

these

of

dollars

be

sister

supported
recognize that

these

to

con¬

Treasury Depart¬

have

actions

combatting

number

a

countries.
and

happy
Monetary

supported

programs

inflation

are

country and the other American
Republics. Through these trans¬

billion.

3.8

total

About

had

annual
In 1956,
level of

30%

of

imports of goods from

foreign

countries

are

and

other

ment

foreign private invest¬

in Latin

increase

of

investment from the

States,

as

shown by

our

payments, has greatly increased in
the past five years.
During the
first
21/4
years
following
our

meeting at Quitandinha, the fig¬
ure

amounts

billion,

or

to

more

about pesos 1.4
than three times

the corresponding rate
during a
comparable period preceding the
meeting at Quitandinha. This ia
largely due to
very sharp ex-,
pansion
in
direct
investments*

particularly in 1956.

In that yeal
direct investments exceeded pesos
600

million, and total private in¬

vestment amounted
pesos

I

800 million.

should

like

States

to

to more

ment.

>

refer

Continued

on

to

costly shrinkage
economy and
of

policy

relates to the im¬

Needless to say, each

of

action

lems

the

on

basis

of

us

important

domestic considerations.

TOgition

partures from the

Such de-.

general

policy
inescapable
justified
by rigorous standards of necessity.

should

Why

held

be

minimum

it is
inces

basic

en¬

Fl

we

with

be

maintain

we can

course

ternational

respect

economic

and maintain

of

an

and should

In that way

dis¬

to

those

in¬

cooperation

well the

as

our

to

integrity

occasional

departures
from it which legitimate national
considerations require.

and

•

to

has

Rate of Growth

co-

What

past

the results of

are

our

co¬

operative efforts during the past
four years?
Today, the people of

iacklittle

the American

ex-

uting more to the economic prog¬
ress and well-being of the world
than at any previous time in our
history. The output of goods and

the
oacn

d in

vani-

services

is

at

k on

isid*

of

the

rate

in the

con-

about

3%

States

a

year

at

and

even

higher rates in other American
republics. The average annual in¬

has

crease

orld.

product

with

whole,

nong

nomic

suc-

in

the

for

at

1953

4.3%

has been

lter-

the

for

for

through

eral countries

out-

national

gross

Commission

years

veen

real

Latin

America, as a
is estimated by the Eco¬

America,

Rio

Latin

the

four

1956. In

sev¬

Man-made Island

of growth

rate

higher.

even

in the blue

Pacific

Rarely, if

for

ever, in history have
witnessed such a
sustained

we

itab-

and

esire

as

the

vigorous

level

of

been

have

we

enjoying

prosperity

cently in the free world.

to-

in this
a

:>mic

|

ense

shrunk,

is

can

for

the

character.

country,

In

the

or

a

many as seventy

pleted

rimmed with rock, will enable Rich¬

there

the island's scenic appearance..

field to tap

an op¬

The

of

pressure

constant threat.

Fighting Inflation
..

In

country

my

we

com¬
mar

This is another dramatic example

island, in water 44 feet deep,

of how Richfield scientists and engi¬
neers

employ modern methods to

-

leld

All

wells. When

drilling derricks will

undersea reservoirs of oil

has been planned to permit maxi¬
mum

an

no

country

Monetary demand is so great that
inflation is either an unpleasant
reality

The island will provide space for as

built, this landscaped island of sand,

depressed,

were

island is rising in the Pacific

world

Then trade had

discouraging.
Today
increasing concern of

posite

|

prices

new

off the coast of California. Man-

have

we

economic activity was feeble
-

an

after
on

ago.

A

re¬

Indeed

find

we

striking contrast to

and

is to

decade

of 20 years
and

por-

their

contrib¬

are

rising continuously

United

eng-

now

States

development of the Rincon oil

field's seaward

aware

of

aged

erting

our

sub-

°ur

to

-

arge

avoid the adverse effects of infla-

tion fever.
Many of you have ex¬
perienced the effect^ of this eco¬

of oil in

many

drilling barges have already verified

.increasing supplies of oil and petro¬

the presence

leum products of the very highest

-

the

recovery

parts of the world, and thus assure

well

are

for¬

speed the

extension, where test

all
itrol

t

in

mfi-

this

best

prosperity

nomic

illness,

Ministers
Jt
brings.

fact.

efforts

and

as

know

nnly complicates the

[fort

"nance

ould
each

disturbing

ex-

task

and

Richfield's

1,175-acre State lease.

quality for

years

to come..

,

what

it

not

of

the

as

a

factor into all the op¬
business

on

of oil at normal depths

Finance

minister, but enters
of

-

keep

and

how




L

to

too well

nize

erations

are

healthy,

know all

You

We

the

af-

*

RICHFIELD a
OIL

CORPORATION

leader in Western Petroleum Progress
-

-

some

page

occasionally is compelled to take

in

than

/

own

aspect of this

United

balance of

States,

reduction

been

vate

shipped

United

has

impressive. The flow of pri¬

from Latin America.
The

America

most

portant areas of trade and invest¬

onal

lems

3

and

are

exchange

We
International

freer

represent the

harmful

of cooperation

had

is

the

our

further

A

lany

gage

You

the

Fund

financial
and

exchange.

the

ceived

greater

realistic

markets is a fixed point in
the policy of my government and
of our whole people.

this

i

with

that

and

your

t he

n

to

achieve

rates of

seek to avoid any return to the
depressed conditions of an earlier

h ar¬
il

United

to

for

to

largest, most stable, and expand¬
market for
the
ing
increasing
production of the hemisphere. To

the
1

the

continues

which

is

capital

The United States applauds the
efforts that are
being made in

of this policy of
firm determina¬

on

prosperity

the

You

couraged when price relationships
become distorted.

the part of my country to
preserve a climate that will lead
to the maintenance of a
growing
tion

it

foreign

currency.

difficulties

this

A basic aspect

difficult

and

for

community.

dency to excessive importsf'Vhich
inflation brings in its train. You

particularly subtle and stubborn.
as

them

rather

an

ciating

of

partners. Often in the
economic fields our problems are
our

Our best interests

the

assets

effective, role in pro¬
ductive investment when there is
continual worry and preoccupa¬
tion with the
dangers of a depre¬

can

prob¬

interest in the welfare

strong

play

suffering of another.

us

of

how

domestic

wel¬

their

employing

benefit

of

of

and

stability

21

s-

22

The
22

Commercial and Financial Chronicle

...

Thursday, August

29. 1957

(914)

they

21

Continued from page

the

conference

in

1954, the United
the International

the legislative
bodies of the signatory countries.

Cooperation

they

ex¬

hospitable welcome, to be
constructive members of the com¬
munities in which they operate.
It is our earnest desire that they
shall be. : These same investors,
tend

a

Questions

believe, are susbtantially de¬
termined that they shall be a fac¬

we

toward

tor

in

progress

human

and man¬

ment

in

In

that

we
;

invest¬

of foreign

field

the

ment

think there is a danger

attention

undue

may

be

given to the very partial figures
which appear in balance of pay¬
ments
statements.
From
these
figures it might be inferred that
the investment of foreign capital

advantage, no balance,
international accounts of

brings

no;

the

to

country receiving such in¬
We believe such a con¬
clusion (would be incorrect for

the

vestment.
several

reasons.

Pictures Real Investment

First, the balance of payments
data do not show the complete

picture. They do not show, for
example, the total amount of new
which

investment

has

taken

place on behalf of private invest¬
ors.
The Department of Com¬
of my government made a

merce

growth in
capital. The shortage

may be more real and
pressing than any shortage
of capital.
Private investment carries with

knowledge
more

special study of the operations of
a large group of United States en¬
terprises
operating
in Latin
America.

The study

covered the

1955 and included companies
holding nearly pesos 6 billion of

process

private capital, credits by

to

public institutions are important
sources of capital. Many hundreds
of millions of dollars will be in¬
volved. We feel

a sense

of respon¬

sibility and will participate in this

development.

extent of

The

our

effort will be determined by care¬

ful

planning,

of

ability

the

by

development
this essential and dynamic

the

to

which

attribute
growth. The

we

much of our own

and the people of

of the economy

Republics involved.
Here my country acts directly

through the Export-Import Bank.
You will recall the policy of the

managerial experience and knowl¬

nounced

prerequisite

andinha

an¬

Confer¬

Caracas

the

at

first

Bank,

Export-Import

skills re¬
quired for the successful develop¬
edge of techniques and

and reaffirmed at the Quit-

ence,

in

assets

Latin

America.

These

.

The

grams,

an

for this hemi¬
expanding fund

represent

sphere
of

what

ever

might

agerial wealth

called

be

man¬

asset of in¬

an

—

As

all

we

ment of
forced.

realize,

the

move¬

private: capital cannot be
flows

investment

Private

June

Our govern¬

conference.

Bank has

the

1957

30,

thorized credits of
million

Latin

to

au¬

840

pesos

some

It

America.

is

significant that more than 40% of
the Bank's total authorizations in

calculable Value.

only where the situation is attract i y e.
Investment opportunities

throughout the free world are so
all

that

numerous

countries

all

during

last

the

10

been made in
the
Latin American Republics. Since
have

years

the

Quitandinha

the

conference,

Latin

in

extended

has

Bank

change income to Latin America
of pesos 2.3 billion, or pesos 1
billion

America almost V-k times as much

in¬

more

than

the

total

ex¬

The

ernment believes that toward this

be

intensified

end, governments should remove

five

This special

study,

helped to correct
tion

about

investment

the

one

believe,
misconcep¬

we

effect

upon

the

of

foreign
financial

obstacles

that

lie

capital formation

through unilateral
which would

measures,

policies and administrative

tices,

through
tax agreements.
;
and

The
our

vise

executive

government
a

would

formula

prac¬

4

national

be allowed under

capacity to increase the total
tional

its
na¬

production of the country

in which it

was

made. This

must, in the United

but the fuller
in being
the

comes

branches

of

utilization of

so as

those

to keep pace with

are,

well, providing im¬

as

portant credits to
ican

our

Latin Amer¬

neighbors,

through the socalled public law 480 agreements,
under which

laws

our

quantities of
to

local

our

government sells

agricultural

re¬

foreign governments for

currencies/

Under

these

agreements, substantial portions
of

the

the

sales

proceeds

purchasing

are

lent to

governments

sources

of

as

economic

development capital. Thus far the
amounts

actually

they
States as in

before

see

expanding needs of construc¬
as they develop,

We

treaties,

government

can

tive projects

of

other countries, obtain the
approval of the legislative

we

we believe that the ade¬
of capital to meet the needs
development bis not a
question of additional institutions

countries

allocated

lent,

to

for

Latin

through

this

loans,

or

American
arrange¬

ment total about pesos 250 million.

many

through increased productivity.




all

as

sound

of

agreements are, of course,
a
matter for negotiating between
the executive branches of the gov¬
Like

far.

quacy

Tax

ernments.

and

ahead,

additional

be

the Inter¬
Corporation is
additional significant

an

payments position. Chief value of
it
in

13 million to seven countries
projects in the fields of ed¬
ucation, health and sanitation, and

pesos

for

land settlement.

Recommends Program for
All

these

of

further

are

El Paso Natural Gas
Debentures &

Preferred

Offers Underwritten
El Paso Natural Gas Co. is
offer

ing to holders of its
stock

common

B

outstanding

(including

rights

stock)

$60,000,000

of

commnn

to

subscribe for
514% convertible

due Sept.

debentures

1, 1977 at a
subscription price of 100% of prin¬
cipal amount and on the basis of
principal amount of deben¬

$100

for

tures

each

29

shares of

stock held of record

mon

com¬

on

Aug
Rights to subscribe will
at 3:30 p.m.
(EDT) on

26, 1957.

expire

Sept. 11, 1957.
is manager

of

White, Weld & Co
investment bank¬

an

syndicate

which will under¬
write the offering.
ing

Growth

encouraging-

are

They

developments.

of

Simultaneously, public offering
100,000 shares of El Paso Nat¬

ural

Gas

Co.

6.40%

cumulative

evidence of a wholesome

nomic affairs.

$60,000,000 incurred in substantial
the flow of for¬ part in connection with the con¬
eign capital into Latin America struction program.
may be, we are all fully aware
The debentures will be convert¬
that such capital can, at the best,
ible' into common stock through
make only a partial contribution
Aug. 31, 1967, unless called for
to the total investment require¬
previous redemption, at a conver¬
ments of an expanding economy.
sion price of $35 per share of com¬
The
accumulation
of
domestic
mon
stock, subject to adjustment
savings
and the application of
in certain events. The debentures
those savings in productive activ¬
will
be
redeemable
at optional
ity ai'e essential to sound eco¬
nomic progress. We must not lose redemption prices ranging from
10514% to par plus accrued inter¬
sight of this important fact. We
est. They will also' have the bene¬
should study with great care the
fit of a sinking fund designed to
general
conditions
which
a r e
retire on each March 1, and Sept. 1

Heartening

In addition

to

to the expansion of

domestic

encoprage

private savings and to insure that
these are used

domestic

productively in the

beginning

I, as ministers bearing
principal responsibility for

March

1,

1968, at par

plus accrued interest, 5%

of the

of debentures
outstanding at Aug. 31, 1967.

principal

economy.

You and

amount

The new first preferred stock
governments in this field, can will be redeemable for the sinking
find real encouragement in
the fund, beginning June 1, 1963, at
curent rate of development in our $100 per share, and will also be
countries, but we must ask our¬ redeemable at optional redemp¬
the

our

selves, are we justified in com¬
placency and satisfaction? We are
not.

The energetic and far sighted
peoples of all of our Republics de¬
mand that

find effective ways

we

to

bring to more and more mil¬
of
people throughout the
hemisphere those standards of liv¬
ing which are attainable if we
lions

best

natural

and

use

of

human

our

and

resources

our

capital.
It is to consider ways of meet¬

ing

this

here.

challenge
will

It

never

that
be

we

are

simple to

put together our natural resources,
labor, and capital so as to produce
the

tion

prices ranging from $115 per
to $100 per share, plus ac¬
crued dividends in each case.

share

El Paso Natural

Gas Co. trans¬

natural gas over its own
pipeline system of approximately
7,000 miles for sale to customers
in
west
Texas,
New Mexico,
ports

the
dis¬
tributing companies in California.
Pacific
Northwest Pipeline
Corp., of which El Paso owns

Arizona, and for delivery at
Avizona-California border to

99.8 % of the common

stock, trans¬

ports natural gas from

New Mex¬

ico, Colorado, Utah and Wyoming
for
deliveries
to
customers in

requirements of a rapidly
Colorado,
Utah,
Wyoming ana
growing population and, at the
Idaho and,'in Oregon and Wasnsame time, raise per
capita stand¬
ington, including the Portland ana
ards. It will always be a challeng¬
Seattle-Tacoma areas. At May
>
ing task. It requires unrelenting
1957, the combined delivery ca¬
effort to improve technology.
It
pacity of El Paso and Pacin
requires improvement in organi¬
Northwest systems was placed
zation and
the

upon

of each of

skills.
It will depend
people and the leaders

countries and their

our

willingness to work, and save, and
encourage efficiency.
■
The

try

delegation from
will approach this

with

sincerity.

derestimate
future.

the

None of

coun¬

challenge

We shall not
problems
us

when

the

time

un¬

of

the

wishes to

comes

for

us

to

our respective countries
it will be with the knowledge that
each of us has made a contribu¬

toric

to

the

discharge of our his¬
responsibility to make of

these lands

a

For the five

better home for all

2,875,000,000 cub

months

day.
ended May

Natural Gas
had conso operating revenues of Si >
385,000 and consolidated net in¬
31, 1957, El Paso

subsidiaries

its

dated

come

en¬

return to

tion

approximately

feet of natural gas per

and
my

courage unreasonable or imprac¬
tical expectations. But I hope that
we
all share the conviction that

1

the technical cooperation program

as

.

necessary

make the

Finance

As

source.

credit

a

our

.

becoming

trying to de¬

by which

Needed

and Development is
important source of de¬

an

velopment loans,

.

departments
are

ex¬

construction
also

international
;

meet

The International Bank for Re¬

unsound tax

remove

will

Bank

to

as

Bank

New

No

be done both

can

so

in the way

and private

serves

investment, whether
domestic or foreign, lies

participation

the

Export-Import

position of recipient countries; it for the taxes given up by a coun¬
does not, however, tell the whole try seeking to attract capital, in
story. The advantages of foreign the same way as a credit is given
investment do not end with their for taxes actually collected by that
final effect upon the balance of country.
the

As

panding needs.

of

billion, wages
We have been engaged in the
and salaries were paid by these
companies to 600,000 employees. negotiation of broad tax agree¬
ments with a number of countries.
Moreover, •* approximately
pesos
one
billion was
paid to Latin In addition to establishing rules
American Governments in various in these agreements by which to
forms of taxation. The revenue assure fair tax treatment, we have
derived from this source became sought to give recognition to sotax
available for the financing of called
sparing laws which
highways, ports and other activi¬ seek to encourage the inflow of
ties which the governments have capital by granting tax reduction
for limited periods of time.
undertaken.
pesos

developed,

are

America.

economic projects

more

the

investment. This

nearly

Latin

in

and

more

of

remittances.

other exchange purposes. In con¬
nection with' iheir total sales of

capital

73% of the total, was

or

extended

of private

process

investment can, of course, be fa¬
cilitated. As you know, my gov¬

tax

This pesos one billion remained
Latin American countries for

million,

Obstacles

Tax

change required by these com¬
panies for their operations and

in

seek

who

vestment

study showed further that

the operations of these companies
resulted
in
direct
foreign ex¬

loans

of

also
the
totalling nearly
was

other

trend in preferred stock, second series of
inter-American cooperation. But 1957, at a price of $100 per share
to the most effective use of in¬ ment indicated that our country
us
always
remember that was made on Aug. 28 by White,
creased capital funds. The tech¬ would be prepared to encourage let
Weld & Co. and associates.
eco¬ economic development in a large
nical knowledge and managerial the financing of all sound
and complex area cannot be re¬
Net proceeds from the sale of
skill acquired by citizens of Latin nomic development projects, in¬
duced to
easy simplicity.
More the debentures and the preferred
America, both on-the-job in plants cluding loans in the private sec¬
the important than any other factor stock will be added to the general
and enterprises financed by for¬ tor, in the best interest of
will be the individual efforts of funds of sthe company and used
eign capital as well as through countries involved, and for which
the quite remarkable number of private capital was not available. each people and their dedication with other funds to enlarge the
visits to the United States spon¬ This policy has, I believe, pro¬ to a program of work and savings, capacity of El Paso's pipeline sys¬
and the orderly management of
sored by both private enterprise duced impressive results.
tem, including the payment of
In the three year period ending their own government and eco¬ bank
loans
in
the
and our technical cooperation pro¬
amount
of
ment of resources is a

poses.

funds.

fund

This

highly developed tech¬
managerial
skill. It

assurance

special re¬

a

year,

authorized by the
Congress of the United States was
the
source
of grants amounting
to pesos two million to the
Or¬
ganization of American States for
Malaria eradication and for im¬
proved research facilities at the
Inter-American Institute of
Agricultural Sciences in Costa
source

and by
of realistic benefits

in development loans
as it
had
extended
in
the
similar period
capital must compete for
before that Conference. During the
it. Even in the most highly-de¬
companies ' represent about 85%
last fiscal year, indeed, the Ex¬
veloped countries there is a short¬
of all United States operations in
port-Import
Bank
concentrated
age
of * savings for investment.
Latin America. The study showed
even
more
on
its' development
that whereas the net capital these Nevertheless, as the figures dem¬
lending in Latin America. Leav¬
onstrate, the Latin American Re¬
companies
received
from
the
have
been
successfully ing aside its loans for the pur¬
United States amounted to pesos publics
chase of agricultural commodities
competing and obtaining a sharply
129
million, their total invest¬
and livestock, and the special loan
expanded
flow
of new capital
ment
expenditures were about
to
the
United
Kingdom which
funds.
In
this
they have been
four times that amount, or pesos
was made on a secured
basis, the
more
fortunate than many other
570 million.
The difference be¬
areas
which have not been able Bank's total of development loans
tween two figures was financed
to devote their resources so fully throughout the world was pesos
out of retained earnings, depre482 million during the year. Of
to peaceful and constructive pur¬
ciationj and other
sources
of
this amount no less than pesos 354

year

the last
gional fund
ing

the

influence
so

America.

Latin

Rica.

and

of emergency
assistance tc^Xatin

program

resolve problems
which were beyond the resources
of the individual countries. Dur¬

countries to absorb capital,

it the most
nical

tion

develop¬
In addi¬

economic

toward

brings to bear on the

welfare.

its

tinued

Administration con¬

America to help

much is to be

that

realize

We
done

managerial skills and technical

of

through

economic

standards of living than
stock of

by

Role of Public Credit

that

believe in my country

technical improvements

the

review

under

publics. It is reasonable that the agerial knowledge which lead to
governments and people of Latin increased productivity may be
important to rising
America should expect our United. even more
States investors to whom

Quitandinha

at

States

and a better heritage f0r
generations of Americans.

States dren,

United

the

by

delegation

Capital Is Not Enough
We

America, which was an¬

nounced

procedure. One, which includes a
credit for tax
sparing, is now

Latin-American Financial
aspects of the role of private en¬
terprise and private capital in the
development of the American Re¬

in Latin

several

have

treaties

And Economic

We

prospective
in varying stages of the

effective.

become

can

now

of

$15,502,000.

With Paine,

Webber

PHILADELPHIA, Pa. —

Pf'"eJ

Webber, Jackson & Curtis, n
bers of the New YTork Stock
and

change

other

leadin*

changes, announces that Jan
Wolfbrandt is now associa
them
live

as

in

nirni-rl

a

registered repres
Philadelphia pin

their

Trnct

CnTTiDany

BU1J«

^

*

Volume 186

Number 5668

The Commercial

...

and

Financial Chronicle

Continued from page 12

(915). 23

narrowly relevant market will be

from

defined

Clayton

Act

showing

of

Section

under

than

7

has been for monopolization

Mergeis and Acquisitions—
A Government Lawyer's Views
into the market, and that

wedge

"inference

the

that du

tion

Pont's

by

its

stock

wedge, the
beyond doubt

was

stantial.'^

For the

relevant

a

tial"

market

mated

by other than stock acqui¬

contained in

this

section shall

be

Court

ment practicalities may

"sub¬

seriously

complicate

any move, even after the

"substantiality

auto

paints and vorced from the ability to secure
fabrics, du Pont's stock purchases effective relief. And the likelihood
had, in turn, spelled a "substantial may .well be that, not too
long
share." 49 Thus in 1946 and 1947, after a
merger has been consum¬
respectively, du Pont supplied 67 mated, the assets of the merged
and 68%

of General Motors'

finish demand

constitute

to

uses

them

well

as

auto

52.3 and

as

products

distinct from all
similar products.55 In Cel-

market

for

test

ficient peculiar characteristics and

1950 amendments, against stock or
comprising asset acquisitions consummated
the automobile industry is undis¬ since
then.
The
power
to
sue
puted." 48 And of that "substan¬ under Section 7 cannot be di¬

of

Sec-

the "line of commerce" have "suf-

was not gained
solely held to affect or impair any right
competitive merit." 46
heretofore legally acquired. * *
Moreover, the market of sales
Not
only
are
pre-1950
asset
to General Motors into which du
acquisitions immunized by law,
Pont stock
purchases had been but equally important, enforce¬

beginning

Act

Motors

7, to repeat, is
whether the products comprising

on

found,

Sherman
General

pur-

Section

under

interest and

the

The

2.

is
overwhelming sition. And the 1950 amendments
sufficiently
commanding posi¬ to Section 7 specify that "Nothing other"

promoted

was

under

poses

tion

it

lophane,56

the
Supreme
Court held that in a monopoliza-

tion

recall,

Section 2

under

case

of

the

Sherman

Act, the test for determining the "relevant market" is
whether

the

are

interchangeable

"reasonably

commodities

by

the

consumers

for

poses"5?

are

or

same

pur-

"functionally

in-

terehangeable."58 Under that
standard, the Supreme Court up-

of

its

auto

fabric

needs.

closed

in

a

substantial share'"

the relevant market. 51

followed

the

of

From this

Court's

finding

of

violation.
rationale

basic

seller

stock

holding
du

scrambled

so

divestiture may be

1914

mean

has

that every

acquired

since

ties

is

regarding

Pont's

buying

stock

the

.

that "The

[its]

.

.

.

definition of relevant

rower

ket the

heart

tion
for

7, mean
practical

findings

stock

.

.

.

ownership
General

lized

cellophane

not cellothe
broader
market of flexible packaging ma-

itself,

was

but

terials, in which du Pont did not

purchasing policies are
by
the
evidence." 53
Rejecting this contention, how¬

dered

a mere

From

this reasoning

Sec¬
tion

been

ren¬

Section

on

able,

regarding what the Dissent termed

the

before
ever

GM-duPont,

hand,

no

one

even

had

seriously contended that the

Government could not

move

under

Section 7 against acquisitions al¬
ready consummated. Indeed, the
great bulk of proceedings filed

thus

far

have

involved

tions consummated in the

acquisi¬
more

is

ing

by

no

or

clear,

means

how¬

that the GM-du Pont hold¬
points such tighter bounds.

On the
that

hand, it may be true,
which are "func¬

one

products

tionally interchangeable"

for

cases.
A merger
'he goes on' may affect more than
one
market
and
have
different
.

effects in each. It would

single

no

definition

seem

that

market

of

would be appropriate for all cases,
nor even for a single case in some

instances.

Assume,

that there

were

for

instance,

three Cellophane
producers and three Glassine pro-

ducers
other

this

country,

substitutes.

two

cellophane

its effect

and

no

would

It

appropriate to test

seem

of

in
close

a merger

for

producers

the

cellophane market (competition among producers
of cellophane) as well as for its
on

broader

(the

on

*

flexible-

and

market

probable ill effects

were

either

on

a

7's

backward

competitor by another
instead an acquisition by
one

the

the

on

part

one

one

cus¬

be reason¬
hand, to require

Government
market"

of

It may
to

put

issue

at

of

consequences

or

"rea-

sumerJfor^the^same9mirp^e "°hi
ihTwJSl

theleTs

SlL S

constitute

these

soon

at

its

after

least

much

sooner

or

so

GM.

In

the

case

vertical

the

30

of

a

less

stock

than

acquisi¬

the other hand, competi¬

tion,

on

tive

consequences

more

than

involved in du Pont-

years

complete

consummation—or

ambiguous

may

at

the

be

much

time

products

ciently distinct,"

it,

puts

make them

a

is

difference

to

uses

suffi-

GM-du Pont

products

"line of

under Section 7.

Court

as

other

from

nnn

sufficient pel

have

may

characteristics and

culiar

to

,.
°
'1®1'0" «;?<=

o

fa of

that

conclusion with anal-

paralleling Cellophane's, of
example, the extent to which
producers
of auto fabrics and

that

shown

are

®ay

f

"qualitatively distinct substitutes

;/a^!1l1^'65P

P™™

are

Y

conclusively) excluded.

"The reasons" for such disparate

"

involved

cases

Section

2

in each offense."

agrees,

On

the

other hand,

the record
replete with evidence, largely

was

of the tremendous financial and inventive efforts re-

du

Pont's,

quired

finishes suitdistinct from other

produce

to

able for

auto, as
uses.58 Similar evidence regarding
auto fabrics was

introduced, again,

du Pont to show its sales to
from merit.60

by

GM stemmed solely

Professor Turner

Clayton Act goals for
definition under
Section 7. As Professor Turner put
it

in

a

market

recent article:6!

-

-

,

'




54 Du
supra

Supreme Court Brief (p. 35).
Supreme
Court
Opinion

Pont

(pp. 118-884).

rather

let

me

than

frus-

Of this
assure

reyour,

aware.'

Halsey, Stuart Group
Offers So. Calif. Edison
Co. 47/8% Bonds !

.

.

.

an

Southern California Edison Co,
first
and
refunding
mortgage
bonds, series J, due 1932, 4%%»

to an unambiguous inference of 101.085% and accrued interest,
bad intent or bad results. . . ."66 yielding approximately 4.80/o. ■
_

He concludes, "it is nevertheless
appropriate

qualita-

exclude

to

tively distinct products from the
market in .such cases because a
wide combination is not likely to
have economic justification and
because competition among producers of the same product is important."67

.

think

"I

it

is

clear

Court's opinion in

from

the

cope

ftemours &

Co., 351

f0re

E.

I.

du

Pont

U.

261

incipiency and well be-

Turner,

(1956).

S.

1,

Oil

62,

Co.

75

States

v.

Antitrust

Policy

itation

and

the
fin.

the

deemed

v

'

lq6

,

at

106.09%

bonds

may
be
re¬
ranging from

prices

to

100%,

plus

accrued

interest.

California Edison Co.

Southern

supplies

electricity

to"

popula-

a

tion estimated to be about

4,370,and
California, excluding Lojf

portion's

in

000

southern

of

central

Angeles.

Reynolds Adds to Staff
.

(Special to The Financial Chronicle)

SAN FKANCJSCO, Calif.—John
R. Cronan has been added to tho
gtaff

Qf

Reynolds: &

Montgomery

Co.,

423

Street,

v.

United

Corn

1916)

Turner,

Policy

Rept. 1775,
(1950), pp. 4-5.

Nor¬

and

the

I

(Special to The Financial Chronicle)

CLEARWATER, Fla.
Antitrust

—

With Sincere & Co.

Re¬

(S. D.
appeal dismissed, 249 U. S.
M.

Peale

has

become

Sincere and

—

Clifford

affiliated

CqmpTny,

601

South Fort Harrison. He was pre¬

67 Id. at 307.
68 Sen.

Calif.

Zipser has joined the staff
Df Walston & Co., "inc., 550 South
Spring Street. He was formerly
with J. Logan & Co.

Ce"sP1M.' C°"'70 H"rV'281'304 t,957>' with
Sess.

ANGELES,

A.

man

States,

Products

(1918).

64

!

With Walston & Co.

(1911).

66 Id. at 305-306,

Cellophane Case, 70 Harv. 281, 375,
80

'

LOS

with monopolistic tendencies

they have attained such ef-

Y.

N.

e.
g.
Record Citations du Pont
Court Brief, pp. 48-49.
e.
g. Record Citation, Brief pp.

the

Pii°r ™ kept. 1, 19b2, the new

fining Co., 234 Fed. 964, 975-976

U. S. 377.

in

bondsiwill not be .redeemable for
refunding at Aside from this lim¬
a lowei effective interest cost*

amendments

Section 7 s aim

63 United

de

57 Id. at 395.

61

As the

the new bonds will be used

company's continuing expansion

CSpccial to Thi! ffmancial Chronicle)

their

221
v.

„

195q

on

62 Standard

Slates

,

Cellophane and

55 Id. at 877.
56 United

.

..

Net proceeds from the sale o*

oftquoted language in the Senate

in

61-84.

886.

toward,

combination," he on its bid of 100.385%. Reoffering
"will not always give rise of the bonds is being made at

construction of Section 7.

Apart from the facts of GM-du
a
strong argument can be

Apart from divestiture difficul¬
59 See
not Supreme
60 See
firmly set is just how much more
53 Du Pont

51 Id. at
878.
52 Id. at

build

"Voluntary

ties that come with time, still

50 Ibid.

Up a market of present prime im-

underwriting group which on
Aug. 27 won award of $40,000,000

different

the

alternatives with changes in price,

purchase.

49 Id. at
879.

per-

Halsey,' Stuart & Co. Inc. headed!

58 Id. at 400.

.

.

oflenses, again to return to Professor Turner, "must stem from differences in the element of conduct
ing

puts it,

•

In GM-du Font's vertical acquisition, however, the market was

involv-

market definition in

Report
*

46 Ibid.
47 Id. at 878.
48 Ibid.

beet and cane. Once this was done,
the merged companies' market importance (measured largely by
market shares), the present heated
competition between them and tho
extreme unlikelihood of future
market entrants, all enabled a
finding of violation.

.

Disparate Mai ket Def

stricter

sweep

still

•

interchangeable."64 trate, antitrust goals.

finishes would switch to non-auto

of

existing market effects
potential substitute product
is,
subject to very real limitations.
issues; instead will this Depart¬
Initially, not subject to chal¬ ment now proceed under Section .7
lenge under Section 7 today is any and secure much the same divesti¬
ture by proving simply that, as a
asset
acquisition consummated
prior to Dec. 29, 1950 (the effec¬ result of some pribr acquisition
tive
date
of
Section
7's
1950 competition may—in the future—
be lessened in some narrowly de¬
amendments). Unamended Section
1 did not cover
fined relevant market?
mergers consumindeed

espoused.

In the case of American Crystal's horizontal merger, the market
was defined broadly to include

.

.

they

kand'ltmay ke

and

and

American

Pont,

combination cases on the other this Department is keenly

purpose,

was,

both

in

GM-du

I suggest, follow closely on the heels of
that market definition each court

From the definition of market in sponsibility,

made from

always

and

case,

reasonably

Pont

backward

results

r

.

is

it

For

7's

The

Crystal

like Standaid certainly
to
its
smaller
comOil,62 and Corn Products,63 in- petitors.
i
1
v-olving Section 7's most direct
Taken together, these cases offer
Section
2
analogue, permanent some insight into Section 7's poscombination by merger. After sible scope.
To the extent this
Cellophane, at least, "market" for scope is broad,, I conclude, tremonopolization purposes, on the mendous responsibility is placed!
one
hand, may include "qualita- on enforcement officials. Section
tively distinct substitutes
7's tools must be used carefully to

the

it unto buttress its "line of
deemed

for

tition

Section

com-

petitive effects within that market,

portance, if not to du Pont, then

combination

commerce"

fact

the

apparently

later—compe¬

years

mar-

ket evidence to gauge future

nnrier

market in monopolization cases,

ceedings against alleged monopo¬
may — still
further in the lization under Sherman Act, Sec¬
future—be substantially lessened. tion 2 with its required proof of
more

ot^mar-

ket; and appraisal of present

share of du Ponts prote,cte,d J?ar£et T saIes
GM;
dSinitmnfof X Cn thf did not mention, made
Pf01'? suggtested- b"*
definitions ol the Court

hop

11 you wlll» Judicial

..

or

focusing
closely

definition

fashion, followed from the

j'f

'

40

two

and saies for non-auto uses. When
this was done, violation, in like

—

'

issues:

of

of

one

be substantially lessened." :

[For, Professor

.

.

All this might have supported an
Only after a passage of
analysis, analogous to, though not
Market definition in such comyears
may
they emerge
suffi¬
paralleling, Cellophane s, that by bhiation cases, and the economic
urged that appraising the effects
ciently clearly to warrant any
reason of the required special exof an acquisition
already consum¬ responsible judgment
justification for such stricter
regarding
mated, a plaintiff could not, as the acquisition's probable effects. pertise and resultant high entry bounds, may bear closely on Secthe Court
cost, manufacture
and sale oi tion 7 today. So much for GMin GM-du Pont did,
So much for
some
quite basic
gauge future market consequences, limitations on Section 7's reach fabneg and Rmshes^ for auto uses (iu pont and the problems of Secshould
be
deemed
a
in part, at least, from the pattern
Hon 7 iharket definition it raises,
into the past.
market.
Since the Court
spoke
of market happenings since the
in
only in conclusions, however, far
acquisition.
1
Applicability of Section 7
from clear is whether or not such
For like reasons, the effect of
Conclusion
Equally true, on the other hand,
i.
the Antitrust Division has not, GM-du Pont on Cellophane may evidence, and the analysis it might
in
Viewed
then,
perspective,
have enabled, was necessary to
since
GM-du
Pont,
re-searched easily be over-stated.
At issue
the Court's decision on relevant American Crystal and GM-du Pont
recorded stock acquisitions since here is whether GM-du Pont dis¬
•
offer some judicial guidance foi
1914 to determine whether now— courages this Department's pro¬ maiket.

less recent past. Nor—again, even
before GM-duPont
had anyone

on

F°ssibly relevant piecedcnt for

.

Turner

Arguing for such

ysis

a

complete merger between two sig¬
nificant competitors appropriately

related

alternative

defined more narrowly (to include
solely sales for auto uses). Again,
once the market was so defined,
the Court could exclude from consideration, du Ponts production

market.

once

commerce"

of

tion 7's backward sweep. Relevant
at the outset are a few caveats

one

It
ever,

necessary

—but

"sleeping giant"52 aspects of

appropriate

the

.

Interchangeability, Again

out

vestigial remnant?

On the

7.

Pont-GM,
after
all
involved—not a complete buying-

Analysis of both issues turns in one seller of
part, at least, on the scope of Sec¬ tomer's stock.

Section 7.

emerges

Du

sweep.

Retroactiveness of Section 7

the

Section

supported

final, perhaps appropriate; limita¬
that Cellophane has)
purposes

not

to make the merger illegal if there

of

the

mar¬

Cpurt fashioned for

ing' cases is
most merger

ing whether du Pont had

of

controlling stock interest ever, the Court found that the
in a major customer may now be
"inference is overwhelming that
held to have violated Section 7?
du
Pont's
commanding position
Equally important, second, does was promoted
by its stock interest
this
backward
sweep,
when and was not gained
solely on com¬
coupled with the possibly nar¬
petitive merit." 54
a

face

primarily

'monopoliz-

effect

phane

as
would
justify Sherman
proceedings."
Effectuating
this
task,
courts

does the Sherman Act that defini-

packaging-materials

monopo-

fects
Act

tion of the market in

the relevant market for determin-

GM

on

before

influenced

.

Court's

effect

The

argument

was
.

the

holdings

practices.

Pont's

issues.

that

a

than

may

First, does the has not
backward sweep the Court speci¬
Motors'
supplier

the

of

unfeasible.

which

fied for Section 7

less
harm

the

be

may

effective

underpins Court
this holding has inspired at least
that
two

fact that

requires
probable

concludes,]
both
intraproduct and interproduct competition may be important and either

companies
that

du

The

presumed

held the trial court's findings that

have a dominant position. In short,
At least in terms of
products which are "functionally
feasibility of effective relief
interchangeable" or "reasonably
in cases involving long consum¬
interchangeable bv consumers for
requirements for automotive fin¬ mated acquisitions, then GM-du
the same purpose" within Celloishes and fabrics must represent Pont
may be more the exception
phane, nevertheless may now have
approximately
one-half
of
the than the rule.
"sufficient peculiar characteristics
relevant market for these mate¬
and uses to constitute them prodrials." 50 This evidence, the Court
Purpose.of Stock Acquisition
lifts
cnfficipntlv
distinct"
from
concluded, evidences a likelihood
Finally, limiting GM-du Pout's other related products to make
that, as a result of the acquisi¬
effect
on
long-existing buyer- them a "line of commerce" under
tions, "competition may be Tore-

38.5%

Since General Motors accounts for
almost one-half of auto sales, "its

the

81st

Cong.,

2nd

viously with A.
Inc.

M.'Kidder & Co.#

24

Continued

from

There

14

page

such

activities

processing.

sources

These are expensive
and
development pro¬

and

considerable time.

of

form

a

notice

perpetual

converted to a more
form
and
eventually is

being

ply

useful

sors, and manufacturers
in competition with one

will be
another,

and in addition will have pressure
their

from

the

customers,

util¬

ities, to reduce construction and
operation costs. In order to meet
the manifold technical problems these pressures and in order to
involved in developing of these give the assurances and guaran¬
rather
complex
machines.
It tees customary in normal business
should be clear that there are a relations they will need to have
large number of different possi¬ the basic knowledge of engineer¬
bilities for reactors and that the ing and costs which can come only
development
of
any
particular from actual experience with fullconcept involves many new areas scale plants. In most cases, indi¬
rect information and experience
of research and development.
will not suffice. There is, as you
Transition Problems
are
all aware, a vast amount of
The United States nuclear pow¬ difference between simply hav¬
er
program is unique in many ing information available and ac¬
ways.
One of its most unusual tually having the experience and
consumed.
shall

I

not attempt

to describe

aspects is that in this program
the
government; has
committed
itself as a matter of national pol¬

know-how.

icy to

The problem of how the sup¬
pliers are to acquire the knowl¬
edge and know-how to proceed on

develop

dustrial

whole new in¬
which
(a)

a

technology

does not have

immediate

an

eco¬

nomic

*

commercial

basis with the

nu¬

requirement to justify it,
(b) will be utilized primarily by clear power plants being devel¬
privately
and publicly - owned oped by the government is a seri¬
These suppliers will not
utilities already in existence, and ous one.
(c) must be provided for and sup¬ be the National Laboratories who
plied by private industrial enter¬ are doing much of the develop¬
prises. There has been little real ment work for the Commission.
understanding of this rather com¬ Nor will they be generally the
plex
situation i and
its ' conse¬ contractors doing power reactor
quences:
let us review it for a development work for the Com¬
mission. Even when they are en¬
moment.
gaged in such work the contrac¬
During the early years when
tors are usually required to use
nuclear power stations are still
experimental in nature utilities entirely separate staffs and facil¬
,

form

groups, as many
of
already have, to carry out
nuclear power projects. In some

may

them

unusual

circumstances,

typified

best

ities

for

mercial

Commission

and

While

work.

com¬

the

Com¬

mission is obtaining services

components
dustrial

on

basis,

and

may

manufacturers,

bank

several

together

phases, Of

project.

a

to

etc.,

carry

nuclear

out

power

However* when the de¬

velopment has peached a
nearly commercial stage it
.

more

seems

and construction.

The

suppliers could,

of course,
experience
by developing technology for a
given
reactor
type
from
the
ground up and then building their
obtain

the

necessary

reactor experiments and pro¬

own

spects just as conventional power
plants are today. Individual util¬

investment of very large

totype
money

power

in

plants.

such

However,
sums

of

developmental

and

experimental programs would
difficult, if not impossible, to
nuclear power stations. There will justify in the United States where
of course be problems of
conventional
power
plants
are
opera¬
tion and maintenance which will cheap and efficient, and where
necessitate procedures new to the conventional fuels are relatively
utilities
and
will require
and in adequate supply—
some cheap
people with different backgrounds and will continue to be for a very
from

those

ployees.

of

their

During the

present

early

em¬

years

these requirements
may be fairly

formidable, but in the long
they will become standard.
Firms Will
The

utilities

run

be

considerable time in the future.

However, some utilities and
suppliers have felt that they could
afford to carry forward some gov¬
ernment-developed technology by
building modest size prototype

Be Private

will

demonstration

or

not

actually
will they do

reactors

of

a

semi-commercial

type on a lim¬
Usually this is done

build the plants nor
the development leading to their
construction.
Rather, they will

with extensive cooperation
among
several
companies, even though

purchase

the

the plants probably would not be

terprises

which

plants
will

through
become

en¬
es¬

tablished
of

in the business.
Some
the old patterns for
supplying

power plants may

ited

scale.

wholly economic, at least during
their
early years of operation.
They are counting on their en¬
gineering and management abil¬

be changed and
companies or ities to reduce costs over the life¬
groups of companies in the busi¬ time of these plants and to pro¬
there

may

be

new

but the essential fact is that vide a basis for later
improved
they will all be private industrial plants which, it is hoped, may be
enterprises,
such
as
architect- fully competitive.
ness

engineers, construction companies,

The development of large new
as electric power re¬

equipment

devices such

facturers.

actors

business

suppliers and manu¬
This pattern of normal
operation is already be¬

proceeds

through

a

series

of stages which cannot be
clearly
coming established in the nuclear defined but which follow a
gen¬
power business.
This will apply eral pattern. One starts
with basic
not only to the
design, construc¬ physics data, fundamental engi¬
tion, and operation of nuclear neering
considerations, and con¬
power plants but also to the serv¬
ceptual ideas. Then there follow
ices required for their
of
operation, stages
exploratory research
such as fuel element
fabrication, and development on materials,
chemical processing of irradiated
physics,
design,
and
the
like.
fuel, and perhaps other special¬ After this come component devel¬

ized

services

such

as

radiation

control, and analytical work.
The various industrial

engineers,

constructors,




suppliers,
proces¬

facilitate

participa¬
tion by industry. However, as one
gets into the stage where reactor
experiments are built and ancil¬
lary services provided for them,
into

gets

one

dustry

does

work

for the

later

have

opment

and

testing,

critical

ex¬

periments and mechanical mockups and tests, reactor experiments

and,

finally,

prototype

reactors.

should

It

power.

the

of the pro¬

success

economic

for

gram

the

in

use

the

estimate

to

similar to that of

reactor

for

our

reactor. This is
being done with three 70,000 kilo¬

turbogenerators,

however
Russians

which may indicate the

only plan to install all three jf the
reactor can, in fact, be
operated
at that high a power level.
total

The

capacity of the
plants
is
difficult
to

respect to the foregoing. This pro¬

planned

to achieve necessary

of the work

compared with 100 000

as

kilowatts

favorable assumptions with

upon

planning

a

portions

jection suggests that there will be
about one million electrical kilo¬

formation.

to

reproduce

know-how.

in,

remarkably
Shippingnmf

our

turbogenerator capacity of
210,000
electrical kilowatts per

of

rate

presJ

very

PWR in about every
respect." The
Russians are, however,
for

growth of the nuclear power in¬
dustry in the United States based

where, if in¬
not cany out the
Commission, it may
areas

Program

Russian

water reactor is

teresting. Its design is

recently made an at¬

We have

proposed

watt

United States.

tempt

The

1957

Energy Commission

Power Reactor

surized

be

will

which

improvements

and

little

rather

determine from the available in¬
In fact, it seems
pur¬

stations in posely vague. However, it is clear
the
total
capacity is not
operation five years from now, that
While the stages up through the about 7V2 million in 10 years, 43 substantially
over
one
million
electrical kilowatts. This is to be
reactor
experiment
are
largely million in 15 years, and 133 mil¬
concerned with establishing tech¬ lion in 20 years—about the same compared with the 2 to 2V2 mil¬
nical feasibility and assessing eco¬ capacity
as
the
total
electric lion kilowatts claimed only a
nomic
promise
the
emphasis generating capacity in the United year ago—when it was said that
watts of nuclear power

Prototype

Stage

States

established

in

electric

this

stage and
then lowered during the life of
the plant to the extent that its

-

will

be

then

be

fuel

life

established
reduced

which

is

It

tion

with

treated

extreme

they do lead to the
be

destined ? to

r

.large

a

and

change will

im¬

bring

with

it

[

limited advantages
by
building

prototypes
reactor.

To

the

of

type

the

real

the

first

world's

British

the

Calder

Shippingport
1955

would

full-scale

this

In

Geneva
was-

or

our

August,

Conference

questioned about

Dr.
Dun worth
of
the
Kingdom. Blokhintsev said

by

United

of

Hail

PWR.'-

the

at

Blokhintsev

that

indeed correct and that the 100,000
kilowatt
water
cooled
graphite

Stains, in some kind of
hypotheticaly^huclear kilowatt

race"

the

States

United

Soviet
much

electric

technology in the
compared with
Kingdom
and
the

'Only

Union.

year

a

station

is

were

would

be

time. This

apparently not a com¬
of the imagination

plete figment
tout

still*appears in the U.S.S.R;
plans y—• with
completion not
promised now even by 1960!

ago

being; made of the an¬
plans Of the U.S.S.R. to

was

nounced

station

power

in operation in a year's

power

United

statements

IVIalenkov's

as with respect to
of"* development
of nuclear

stage

nuclear

Prototype reactors are expensive
must, of necessity, produce

well

as

the

and

of

position

;.

Malenkov

U.S.S.R.

nuclear power plant—before either

great deal of

a

that; the

a

particularly to be avoided.

amounts

been

about- the

strangely missing.
you
may recall,

the United

of
ob¬

jectives at this stage with that of

substantial

has

discussion

multiple

same

confuse

There

to be

are

in

large
pressurized
is: claimed for 1960

As

have

many

problems which,'must be faced at

.

obtained

one

plant

claimed

portant that prototype plants not all levels both in government and
be built prematurely in the de¬ industry.velopment process. It is also im¬
Russian Power Reactor Program
portant
to
recognize
that
only
very

be

for the remainder of the program
are

rapidly expanding business dur¬
in ing the next twb decades. Such a

fuel

in

most

would

(versus 1957 for our Shippingport
PWR) » but the completion dates

con¬

viction that nuclear electric power
is

of

water

these

as

may

by increases

reductions

and

preparation costs.

be

caution

capacity can be increased and the
plant simplified. Operating costs

such

estimates

scheduled

then

operation by 1960.
The present information is also
vague about schedules.
Comple¬

generating capacity.

While

must

all

present time. How¬

that time,
1977,
the
nuclear capacity will still only be
about
one
quarter of the total

nomic feasibility but in actually
attaining it. Unit capital costs will
be

the

at

by

ever,

They should be operated
a
period of years, and by have 2 to 21^ million nuclear
capable and knowledgeable electrical kilowatts of capacity in
people, to obtain the know-how operation by I960. The Commis¬
power.

that nuclear power sta¬
tions will be treated in most re¬

ities will have to finance, contract
operate
and maintain
the

with

development

by the Commis¬

competitive in-, obtaining
a
number
of
large
much as possible, nuclear
kilowatts
is
a
hazard

apparent

for,

sion

on

a

as

by the Power Reactor De¬
this still does not provide the ex¬
velopment
Company
and
the
Atomic Power Development Asso¬ perience necessary in many im¬
ciates, various types of companies portant areas, particularly that of
the over-all physical plant design
including
utilities,
contractors,

suppliers,

be carried

changes in the next stage, the
prototype. This step is essential
not only for determining the eco¬

Position of Suppliers

a

The early stages of
can

of

pointed out that the sale, con¬
struction, and operation abroad of
types, of reactors developed in the
United
States
is
an
important
method of obtaining experience

demanding expensive facil¬
ities, the highest quality scientific
engineering personnel, and
grams

Issues in the United States

States Atomic

as

power

/Thursday, August 29,

..

Civilian

conventional

with,

compared

research

Current Nuclear Power

since uranium or thorium is sim¬

nuclear

of

nomics

chemical

fabrication and

the

and

stances,

fuel

as

circum¬
eventual eco¬

industry under favorable

the

stages for

similar

are

ancillary
element

not

and Financial Chronicle

The Commercial

(916)

for

and

information

them.

The

desired

construction

sion, and. particularly Chairman
Strauss, were criticized for ex¬
pressing doubt 'that such a pro¬

from

of

proto¬

types generally requires the repe¬
tition of many of the earlier de¬
velopment stages to extend the
a

to

large-scale

that

required for
Thus expen¬

plant.

sive additional development work
may

have to be done

even

though

the development work up to that
time has been of the most orderly
kind.
It
seems
clear
that
the

industrial

supply

which

concerns

these

reactor

will

types

com¬

could and would be

gram

by the Soviets.
Recently
we; have

confirmation that
year ago were

is in

and in

at

Belgrade

World

Power

it would be
the

ment

formation

if

is

progress

to

be

made at the maximum rate and if

a

received

meeting

of

Conference.

While

mistake to discount
too far

clearly apparent from the in¬

U.S.S.R.

now

available

is

program

that the

actually

costly duplication of effort is to be
avoided.

which

truly

the

effective,

to

program,

the

moreover,

industrial

organizations

also

be

the

select

fpr prototype
From the

what

some

types of reactors
construction.

foregoing,
of

should

the

you can see

questions

are

able

would

as

seem

to

be

reason¬

compared with the highly
that
were

exaggerated
claims
made last year.
One

interesting feature of

the

U.S.S.R.
more

program is that it looks
and more like the
U.
S.

concerning the building of proto¬
type reactors. How are they to be

program.

It

Russians

are

selected

and

and

who

is

to

decide

the

may

now

general way.

a

appears

that the

lagging in technology
hope to obtain guidance

this type of reactor by
and it was claimed

on

Russians

to be

be

one

built

plans
not

the

of
about the magnitude and character

For

placed

a

reply to
questionnaire

ability of the Russians

it is

deuterium

A great deal of emphasis has been

series of papers presented

a

the

cooled,

gas

definitive listing though it is

any

quite justified. This

Nations

the

Development

interesting aspect is

still mentioned in

official U.S.S.R.

an

United

a

mercially must undertake and be
fully responsible for this develop¬
work

that

accom¬

doubts of

our

Reactor

Another

moderated reactor is missing from

plished
•

information

Absent
.

are

even

reactor

type which would soon
full scale. No such

in

presented and it is
in the list of

now

included

experiments.

*

It

speculated that this

could be

situation might, arise from disseiv
tion
and
feuding
between the

Ministry of Power Stations (for¬
merly headed by Malenkov)
which is carrying on much of
U. S. S. R. reactor program

the
and

of Sciences which
supporting other
types of reactors and their de¬
velopment including the gas
the

Academy
to

appears

be

cooled, deuterium moderated re¬
actor.
Apparently
we
are
not
unique in our debates over what
types of reactors should be built.
.

What

the

is

source

these

of

through U. S. advances which, of drastic reductions in the scope ot
can they be built with the maxi¬
course, are available throughout the nuclear power program in the
the world. It is also
mum incentive for
achieving low
significant to Sixth Five Year Plan? The Soviets
costs and high performance? How note that their judgment has not must be most reluctant to have to
can they be built so as to
led them to other
provide
types of re¬ admit that their grandiose plans 01.
industry with the experience and actors or to greater emphasis on last year are unlikely of fulfill¬
know-how necessary for ultimate natural uranium for
ment, at least with any reasonable
power
re¬
commercial use (the Commission's actors.
proportion of effort.
own objective) without
The U.S.S.R. program as
providing
There seems to be good reason
now
those participating in the
program described
includes full-scale to believe that these changes arose
with undue advantage? These are
power reactors of the pressurized because in 1956 the Russians had
when they are to

be built?

How

most crucial problems and are at
the core of most of the debates
on

the power reactor development

program.

Growth of Nuclear Power

Industry
The rate of growth of a nuclear

water

and

types

with

for

four

water

cooled

reactor

graphite mot

experiments

other

types;
aqueous
homogeneous, fast breeder, sodium
graphite, and boiling water. The
Russian water cooled
graphite re¬
actors-are somewhat similar to
the

Hanford

production

reactors

industry depends on several which have been in
operation for
factors; the rate of prosecution of many years. The other five
types
the development work and its suc¬ are
identical with those selected
cess,
the
transition
to
private three years ago for the

power

United

gotten far enough into

program

to

difficulties

even

manufacture
other

words

about
seems

year

to

their
the

realize what

development and
really would he. fa

in

they
were
nalvT+
proposed program, ij
likely that during the pas

their

the Russians have come iac
with the real difficult^

face

of their

announced

programs an

have had to revise its size

wards,

extend

its

down¬

schedule, and

Number 5668.

Volume 186

The Commercial and

..

Financial Chronicle

(917)
drop

-even

of

some

the proposed

This

comparison ignores the fact
these
gas
cooled
reactors

of reactors. It should be
kept in mind that although the

that

situation with respect to cost and

more

availability of conventional fuels

United

types

•

similar

quite

is

to

that

in

would

the

much

be

independent

more

have

these

that

and
'

The

been

there

that

that

in
of

power
ficient

simple

power

United

reactors. They are. doubt¬

to

plans

announce

flow

diagrams

discovering that this is

less

the

we

breif

not

States.

and cost

re¬

going to have
in the

reactors, on
be available

other

tried

re¬

power

Such

and

have

economic

cooled graphite

are

their

under

financing

in competition with fuel that

ing

United

and, perhaps
all, that it takes

the
r

and

It has been, our

observation

experience and
the

that

reactor

de¬

be

business looks simple
until you really get into

and easy

it.

Learing

-important
;

which

■

step

in itself,

is,

forward

and

an

have

long

one

can

-that

rational

a

and

irrational

claims

as

their

to

the

Kingdom

perspective

coming

of

the

we

one

the

promise

of

making

well

and

economy

as¬

ficulties which

capabilities

distort

United

States

and

warp

policies and

More than half of the firms forecast
in second half than in first half of

Business this Fall looks good to
the

of

most

industrial

205

con¬

the

National

Conference

Board's

reporting

cerns

lar

Industrial

in

on the business outlook.
majority are optimistic re¬
garding prospective new orders

cleansed

Reactor

Power

There has been

Program
misunder¬

some

standing about our opinion of the
United

.

Kingdom

reactor

power

view of their circum¬

program. In

stances and their

capabilities there
question but they are pursuing what for them is a very
is

'

and

necessary

course.

Difficulties arise because there
people who

are

that

what

the

is

to

seem

believe

good program lor
Kingdom must be a

United

a

billings;

many

are

planning to boost their rates of
production and look forward to
improvement in before-tax profits
during the remainder of the year.
Manufacturers

no

sound

dollar

and

dustrial

electrical

of

in¬

equipment,
hardware,
general industrial machinery in¬
struments, controls and apparatus,
.

nonferrous

metals

office

and

particularly cheer¬
Producers of apparel and re¬

equipment
ful.

are

the

adverse

brought
It

the

over

the

of

1956

steel

strike," and "increased plant
capacity."

Dollar

value

of

of

five

production

cooperating
than

more

plan to
above

As

the

in

in

companies,

two

level

the

lated

out

of

the

the

also

products, construction mate¬
paper and
allied products
see a bright second half.

of

case

orders

new

economics, and our
"backgrounds in nuclear energy.
•We are charged with being back¬
because

ward

we

not

are

follow¬

ing the United Kingdom pattern
and because
lor

as

power

we

much

by

do not have

plans

nuclear

more

or

given date.

any

4

The

British

excellent

have

done

a

very

job iii developing the gas

this

approach has been Sir
'Christopher Hinton who is Man¬
aging Director of the Industrial

Group

the

of

United

Kingdom
Atomic Energy Authority.
Recently Sir Christopher gave a
paper which was considered to be

with

optimistic

very

respect

to

further development of gas cooled
reactors and their eventual eco¬
nomics.

A

fact

that

is

not

gen¬

erally
appreciated
is
that
Sir
Christopher's
own
figures
can
•easily be utilized to show the lack
of promise of such reactors for
in the United. States.

If

one

a high level of buy¬
and sustained con¬
sumption." He noted that "while
1957 may not be. the record year
that 1956 was, we certainly feel

employment,
ing

power,

will

it

be

fi¬

The

squeeze

lem

for

eral
on

firms

of

as a

outlook

according to

that bears watching,
the

Another

president of a food company,
overproduction. -The
tight

is

is

situation

money

additional

an

that continues to worry sev¬

area

*

Board

Conference

the

expect

Fall

the

survey

of

value

dollar

be

to

new

higher

faster

year

will

orders

new

rate

than

come

year,

similar proportion intend

a

many

increase

the anticipated

cases,

is the result

"an

of

ex¬

pansion program that is just get¬
ting underway" or "a more-t.hannormal replacement and modern¬
ization program."

in

at

a

in the first half

Christopher's

Plumper Profits
The

outlook

for

most companies is generally good.
More than half the firms forecast
better profits
second

first

half

half.

before taxes in the

of

1957

than

in

the

reactors

year.

pants

are

Fifty

ference

will

power

from

power

plants

cost

more

conventional

in

1980

and

than
U.

S.

will

only drop below this cost by 1990.




two

out

cerns

earlier

of

three

foresee

a

figures.

reporting
rise

More

over

than

con¬
yearone-

of

the

of 211

milligrams of

see

his

Cabinet

survey

the

results

partici¬

Alfred Laurence Adds

While

the

LAUDERDALE, Fla.—Jack

would

make

unit

it

on

a

long

to

is

need

specify
char¬

range

acter and international

There

better

even

an

in which
of

for

commerce.

interna¬

an

tional money unit of a sound typo
such as the gold standard pro¬
vides.

Switzerland has been

mov¬

ing in the direction of providing
Germany with its vaster re¬

one.

sources

attractive

and

gold

re¬

to money and deposits could

serve

take
the
lead.
Once
Germany
proclaims that its DM is going to
be

absolutely sound for short and
long-term
transactions
in
do¬
mestic and world trade by be¬
coming a title to 211 milligrams
of gold for any holder and not
only for central banks or govern¬
ments, the favorable effects would
other

United

steps.

nations,

then,

Gold,

which

similar

take

would

common

one

stimu¬

and

including the

to

States

become the

by

evident

become

again

denominator

currency

is

com¬

pared with another.
In

would

that

be

foolhardy,

Germany
their

undo

and

excellent

Laurence

&

Olas Boulevard.

inebriate

an

hang¬
the

a

Katzenjammer,

or

as

sprees,
and,
suffering
resulting hangover, are
crying out for company in their
misery rather than attempting to

the

reform.

GEORGE F. BAUER
International Trade
Consuiant

Carmel, New York
Aug. 26, 1957

Walt

Co.,

Disney Slock

Offer Underwritten
A nationwide group of under¬
writers headed by Goldman, Sachs
& Co., Lehman Brothers and Kid¬

der, Peabody & Co. on Aug. 28
offered 400,000 shares of common
stock of Wait
at

Disney Productions
price of $21.75 per share.

a

The

shares

being

are

for

sold

the account of Atlas Corn, and do
not

represent company financing.

The

offering is expected to con¬
siderably broaden public owner¬
ship of the common stock, and the
company has stated that it intends
to apply for'listing of its shares
the

on

Stock

Newv York -and

Pacific

Exchanged. £'

Floyd

B.

Odium,

President

of

Atlas

Corp., and a director of Walt
Disney Productions, has indicated
that Atlas presently intends to re¬
main
the

the

largest

stockholder

of

next to the Disney
family, through the exercise of
warrants to purchase 153,553 ad¬
company

ditional

shares

prior to
Walt
neers

Oct.

of

31,

common

stock

1957.

Disney Productions, pio¬

in

the

development of the
cartoon, produces and
distributes
motion
pictures for

animated

worldwide

exhibition

for television

and

theatres

in

exhibition,

ex¬

ploits and markets characters and
music

arising from its motion pic¬

tures, and

owns

65 Vz %

a

interest

in

Disneyland, and exhibition and
amusement park located near Los

Angeles, Calif. The company is
currently producing three or four
feature length action or nature
films annually and one feature
length ' animated
cartoon
every
three to four years. Many of the
theatrical motion pictures in

497

the

company's library have fresh
to each succeeding gen¬

to

suggest
Switzerland
work

and

eration

and

substantial

continue
value.

have

to

The

a

company

plans to reissue Show White and
the

Seven

time in

Dwarfs

for

the

third

early 1958.

Joins

Goodbody Staff

(Special to Tiis Financial Chronicle)

of

bringing their currencies in
alignment with inferior currencies.

MIAMI, Fla.
son

It is
of

a

surprising that proponents

revaluation

upward

of

the

—

George F. Sam¬

has joined the staff of Good-

body

&

Co.,

14

Northeast

First

Avenue.

DM, unmindful of benefit of fixity
in

a money standard, do not urge
its devaluation downward into the

financial mires in which other
tions

recklessly

suggesting

D.

on

interest

striving for that perfection, it

with

Las

yet

gold-convertible basis for
individuals but only for central
banks and governments, that step

selves to sink.

East

not

is

DM

fully

O. Cuthrell has become connected

148

actions

Full Convertibility Envisaged

attained

1956; 33% predict smaller earn¬
ings and 17% expect to equal their
1956 profits performance.

Alfred

go

structive

from

values, supposedly for the purpose

in

FT.

valiant

that

consistently taken to main¬
tain the new currency unit in a
healthy condition.

were

cent of The Con¬

1957 profits before taxes

rising above

over,

gold.

made for the entire

per

ef¬

Germans call it, just because other
nations have been on
such
de¬

appear

forego the major quality of fixity
so essential to a money standard,
be
it for distances, weights,
or

Board's

should

and wake up with

spree

dwarf

a

dissipations

own

the basis

on

However,

23% expect
second-half pretax profits to be
lower, while another 24% will

estimates

disastrous

It would be like saying Ger¬

many

recommending that
giant be cut off in

dwarf made

depreciation of the mark

late

profits among

of 1957.

Prospects for dollar billings are
even
more
encouraging.
Almost

su¬

preceding period, a courageous
step was taken to fix the new DM

soon

Slightly less optimistic earning

earlier, while a little
than half the companies think
a

In

Gain, Billings Up

More than one-half of the firms

the

this

half-1957 levels.

v.tv

Orders

of

maintain their income at the first-

executives.

eral company

half

continue spending at the firsthalf-1957 rates.

result of keen

business

the

latter

Also, sev¬

conditions.

competitive
feature

while

companies expect
capital outlays

their

to

reported price-cutting

the increase

we

according to Sir
projections
power
from extremely large gas cooled

companies

of

number

a

surveyed by the Board.

less

that

profit margins

on

is still the most troublesome prob¬

nancing costs to bring them into
line with U. S. industrial practice
find

profitable year for
whole."

a

the economy as a

in

the

three out of 10
the

orders' in

in

Head Up

are

in

than

change

these

that

of

After destruction of great wealth
in World War II, and subsequent

two-fifths

outweighed by "full

were

Kingdom figures at face value and
a

Over

companies

decrease

only

makes

Expenditures

to

use

accepts all of the United

Capital

of
reporting
planning higher
conditions, according to several second-half-1957 rates of capital
respondents. One petroleum exe¬ expenditure than prevailed in the
cutive cited weaknesses in steel six months just ended. But almost

outlook, there are some in¬
dications of spottiness in business

felt

his

a
a

investment

eral

but

like

money

Soft Spots

Despite confidence in the gen¬

factors

; cooled, graphite moderated reac¬
tor and are exploiting its capabili¬
ties to a very high degree in the
Central Electricity Authority re¬
actors to be completed in 1961 and
thereafter. The principal exponent
of

Some

production,

Excellent Job

billings estimates, one reason
lifting output levels is
"enlarged
manufacturing
facil¬

ities."

economies and

level

and

taller.

first half.

offered for

for

•

festers

the

to

tion.

be

five

of

and

rials,

program

these

up

is

legs of

by

boost second half output

United

good

should

Its

however, would be more
distinctly revealed with devalua¬

of

Konrad Adenauer and members of

the second half will top the level
of a year ago in about three out
and

all, such an alignment is
underlying objective of the

the

enter¬

It is to the credit of Chancellor

Production Hikes

'States. They choose to ignore the
'
differences • in
our
needs,
our

'

of

bur¬

expansion

ventures,

order that

effects

Advocating "Katzenjammer"

perior currencies.

reasons cited for high¬
billings are "price in¬
the "non-occurrence of

dollar

tax

dens, thrusts
against pri¬

reckless

and

socialistic

Among the

creases,"

ex¬

cessive spend¬

prise

levels of the preceding half year.

er

ies

currenc

the

increase

to

that the

vate

expect second-half-1957 dol¬

billings

in

because of

1957, according to National

half

sug-

made* inferior

ing,

Industrial Conference Board survey.

The
K.

them

the dif¬

better pre-tax profits

a

ap¬

no

gestion

attaining it.

survey

programs.
U.

There

must all face in

we

inferior

pears

being

In that

After

revaluationists.

contribution

will far outweigh

its people.

on

the DM would also be put in
alignment with inferior currencies.

fects,

gives

It

years.

tax burdens
way

with

of the facts of life dur¬

coming

a

spending, incur vast sums
insupportable

it in
alignment

going

"

sound

bring

currencies.

only

can

reckless

quently should
be adjusted to

reactor develop¬
in the world.

to be

our

Mark)

other

that nuclear power is

which

that
the
DM
(Deutsche
is overvalued and conse¬

many

power

believe that

to

There have been repeated state¬

20

quarters

some

as

of debt and shower.

program

sume

ing

Chronicle:

provide

may
our

on

two

to

ment programs

I

Editor, Commercial and Financial

re¬

Optimistic
Business Activity This Fall

On

capabilities is likely to be correct
in the long run and that we would
be silly indeed to let unsupported

1

in

United

in the

be

their

of

expand

205 Industrial Concerns

it does indicate

estimate

go¬

a

proposed in

highly desired quality in
Envisages full convertibility.

sound money unit.

t

a

Opposed

action

disrupt quality of fixity

George F. Bauer

complacent about the activities of
the U.S.S.K. in any field — far
from it. However,

to

would

broad

are

industry wjiich

an

George F. Bauer maintains

at

It should not be concluded from

that

economic

and

even

the aqueous homog¬
reactor, the sodium graph¬

eneous

somewhat late date.

foregoing

run

Kingdom. These types include the

'

the

I

that, in
technical

ments by persons outside of Ger¬

relation

heavily

fast reactor,

one

learned—though

the

useful

more

the

must conclude that the

one

Soviets
a

"

that

are

gas

to

cooled
graphite reactor they are very in¬
terested in other types of reactors
which they still seem to feel may

•

out

many

during

principal

committed

velopment
'

States.

although the British

en-

gineers—and in large numbers.

;

■

scientists

best

very

the

Another factor of interest is that

-

operation,

into

put

point

expected

the United

that it takes facilities which them¬

in

as

'

'

Mark

reac¬

The comparison of this program
those of Soviet Russia and

in

most important of

power

problems, there

markably

times

expensive

THE EDITOR:

Revaluation of Deutsche

a

development.

the

to

be

can

some

'

to

industry;

is not only scarce but two to three
as

TO

the

of

government development to

business, that it takes
time, that it takes intensive effort,
selves take time to construct and

their

present

with

an

and

difficult

to

problems in the transition from

nomically

of

LETTER

bis¬

years.

at

a very

liquid

some

pertinent aspects of

addition

develop

more

nuclear

is

of

summary

hand, can
early date in the United
Kingdom and can compete eco¬

to

or

or

are

gas

economic

plants—that it is not suf¬

make

fuel

as

of the matter

got to

the

I have endeavored

tors

which

the

actor

nuclear

such

and

Conclusion

the
other

not included to the

are

have

we

than

building

simplest

the

finding

formidable

very

are

difficulties

technical
even

be

must

in

that

costs

blunt fact

actors

Russians

and

reactor,

muth-uranium fueled reactor.

60%

to

extent.

same

their decisions.
The

States

inventory

of

own—

still

States

United

United States their programs call
honest economics than our

probably cost 50
if
actually built

ite

25

away

its

allowed

Two With Alfred Laurence
(Special to The Financial Chronicle)

na¬

TAMPA, Fla.

them¬

That would be like

that Germany throw
restraints, engage in

III

and

—

Edward Crump

Louis L. Traina

are

now

affiliated with Alfred D. Laurence
St

Pa

*31 ft

TYTirH

cnri

Qtrppf

The

Commercial and Financial Chronicle..

.

*G- (918)

involved in a war that reduced these earlier
the proportions of peccadilloes. ^

not become

Continued from first page

Thursday, August 29,
1957

ony l/14th as great as in the Civil

world* War

New Deal antics to

demand in any event quickly
rose to proportions far in excess of savings, and the government resorted — as government always has done in
major wars — to the creation of funds to fill the gap,
which is, of course, precisely what Chairman Martin
rightly says would be disastrous if now undertaken or
encouraged by the Federal Reserve System. When the
war was over, instead of looking around for some means
of correcting the dangerous financial situation that had
come into existence, we under the influence of a morbid
dread of a depression applied a hair of the dog that did

BS mUCh as in

I

During the war years

\'As~'We See"It
but to our mind there

is

good reason to doubt the gen¬

no

proposition that we are demanding more goods and
we can or are willing to produce and are
much inclined to try to get that which does not exist by

eral

services than

use

of bank credit.
What to Do

Martin has his

Chairman

own

situation could and should be dealt
and

tive

Legislative

ideas

as

to how the

with, too. "The Execu¬

the

junction, can," he says, "assure adjustment of Federal
revenues and expenditures so that, in times when total
spending threatens to burst the bounds of capacity and
drive up the cost of living, the Federal Government will
set an example of restraint in outlays and at the same
produce

from any

a

.

surplus to counter inflationary pressures

Congress and the Executive can take steps to
that free and vigorous competition is maintained

segments of the economy as the bedrock
enterprise system.
"The Federal Reserve

System, itself

a

At

or

about

the

time

same

that

Martin

Chairman

thus

addressing the Senate Finance Committee,
Richard Ruggles,. Professor of Economics at Yale Univer¬
sity, presented his views on current conditions before a
Senate xAntitrust and Monopoly Subcommittee, in the
course of which he
expresses doubt whether monetary
controls can be relied upon in this inflationary situation
was

which

he agrees

exists. "In the present situation,"
"such policies (monetary restraint) can only suc¬
ceed in stopping the price rise if they prevent wages from
continuing to rise faster than productivity. In a situation
where businessmen expect good profits, are making in¬
vestments that will yield increases in productivity, and
generally believe in expanding markets, they are apt to
give into labor's demand for wage increases. Labor, simi¬
larly, is likely to make significant demands, on the ground
that such wage increases are justified given the level of
profits and the optimistic expectations of the future. To
stop the wage rise by monetary means, it is necessary to
reverse these
expectations,- to make businessmen hesitant
about giving wage increases and labor less insistent about
asking for them. But such a result is not healthy for the
economy either. It not only will retard wage increases, but
now

he says,

because it makes businessmen pessimistic about the future,

they will be unwilling to undertake investments to inproductivity and provide for growth.

*

crease

"When

price rise is not accompanied by excessive
demand (which the Professor does not think exists now),
tight money can achieve stability of prices only at the
cost of reducing the rate of
growth of the economy and
perhaps risking stagnation."
There

agree

.

inflation

nipping

^

,.

from page

believe with him that

causing

depression. There have been outcries to a similar effect
every time the Reserve authorities have placed a restrain¬
ing hand upon borrowers since the end of World War II

a

—and there
a

were

certainly

great many who would have

similar hue and cry had there been
any evidence
course of action
by the Reserve authorities in

Switzerland. —

danger is today of a serious
depression resulting from any given line of government
or Federal Reserve
policy, we do not feel qualified to say.
What we are quite certain of is that we are
today in the
situation aptly described
by Chairman Martin, and are
confronted

with

the

problems, psychological and other,
listed by Professor
Ruggles, precisely because in years
past we were not at pains to pursue the policies now ad-^
vocated
,

by Chairman Martin. The New Deal idea

create funds to replace those which

owners

was

would

to

not

spend, and to supply them in such abundance that
greatly
increased buying would occur. We should
doubtless have
i

lived to pay the piper

handsomely for this folly had

•

-..

t.




'

•

■

we

in

some

than might have been anticipated.
From 1951 to 1956, the U. S. price

.

1

a

or an average of
1% per year. This is not

(7%), and

bad record,

especially when it is

.•saar^wrasrs
about

tend to stimulate wage demands

31/2%. This amount of

un-

employment is not much in excess

the smallest in France and Greece

and in

by pro-

of the minimum to be associated

(1%). The increase for the United
Kingdom was 3%; for Western

ducers.
As the British Prime
Minister put it:8
The level of incomes depends 011
the balance of supply and demand
throughout the economic system

with frictional element. At least
the theory is exploded that full
employment and stable prices are
incompatible objectives,
But the British standards of 2%

whole. If demand is signifi-

of unemployment are higher than
ours, and hence the British econ-

Germany, 2%.3

Perhaps more than anything the
explanation of the rise of prices
was

demand

excessive

Increased

home,

at

prices of imports

tributed

little

creased

this

wages,

taxes,

in

con-

In-

year.

higher indirect
removal of subsidies

and

do with the

had much to

rise of

as

a

turn high prices

cantly in excess of the supplies
available to meet it, the pressure
of demand will itself contribute
to forcing up prices. Prices can
also be forced up by pressure for

higher

prices.
Over

longer period—-1946 to

a

1955—the British Government

sociated

rise

as-

incomes

when

even

the

level of demand is not excessive,
But, generally speaking, the high-

the level of demand in relation
to supply, the easier it becomes
ably with wage policy. Tax and to obtain larger money incomes
subsidy policies were also a fac- and to pass on any resultant intor.
Despite the importance of creases in costs in the form of
trade,
the British
Government higher prices.
%
?
held that higher prices of imports
In the United States, the tendwere not a major factor.
Monej'- ency has been for wage earners
incomes per unit of output had
in growing and highly productive
risen by about 45%, and prices industries to take the gains of inof imported goods and services by
creased productivity in higher in70%. But in the whole economy, comes and more leisure. In steel,
the rise of British costs of profor example, the major gains were
duction, as measured by money thus accounted for, and consumers
incomes per unit of output, was
did not benefit from reduced
4-5 times as important as import
prices.
Particularly
since
1940
the

of

prices

espe-

er

cially with income policy and not-

prices

in

effects

the

final

on

prices.

'

Above

all,

the

government

stressed the rise of wages and salaries of 255% from 1938 to 1955 as

against 80% in dividends.
United

States,

somewhat

the

In the

trends

were

similar.*

Percentage Rise, 1938 to 1955
Labor

income

—

Personal'YnterestT

~~~~~~

399

.

The contribution of
pay

well

as

higher basic

fringe benefits in

as

the United States

economy.10
f
.
~ft .
,
(5) Inflation ana uuiput

In the views of many, inilation
is the price that has to be paid
for rising output. Once our objective becomes one of full employment, maximum growth, etc., then
concessions have to be made to
instability, it is held. With full
employment, the worker can ask
for

average

gain of output of 88%

ductive

55%.

Part

individual

of

the

gains

industries

to

went

and

and

lise

a

of

other

tion to go

agement,

War

and

its

aftermath

productivity"

the

are

WmonnCoimbv°2|frBmls47Thi^k
on,
by 2 k times. This

most imPortant

per

uon' Yet we liave learned much
about tax, monetary, and other

a rise

ot

a

little

over

of

0/o

Professor

Slichter has also

the

greater

em-

recourse

skills

and

shifts

states

to

factors

as

i

Pfl

on

~T^d

Especially

UN,

Economic

9

/«£

p

'P'

Survey

8

1957

7

(my

of

the

Business

Trends

50

obtained

1913

1940

1955

(1920=100)

'

1R4.

255

1°!

296

?°/K3iJ

Hul5', "T£e
*

,

Hours Per

Per Hour
Ter Week
(1920=100) (1917-1919=100)

1R^

i?_

wage

-

■

P '

73

factory

productive industries, whether tne
- explanation is absence of auto-

Real Wages

87

the

average

rates rise more than average gains
in productivity. (Though the less

Z™i957

*

bv

Ameri-

years,the
rises equa

Week

Iron and

prices

Steel

(Deflated!

(1920=100)

41

68 9

86

65

on'n

infi

367
37.5

106

90

;

President,

calculations).

Current

it has in the

Hence,

•

Per Hour
AeaJ

H.M.G., The Economic Implication of Full Employment, Cmd. 9725,
1956, pp. 5-7, and Economic Report of
the President, January, 1957.
Report

P

Productivity

of

4 Source:

as

Productivity in Steel and Its Distribution
Real Wages

supply

Europe in 1956, Ch. 3.

6 Economic

nrnnnv

.

over

.

Worker.

World

P

9725

year,

however,

workers demand pay

m,inK

resources going to war was

———

3

In

the bask of the

p

bringing higher wages?
Excesses of demand

to

of infla- can economy over

War II, the inflation in the United

lTinge benefits, escalator clauses,
the need of larger differentiation
for

Y

employment stabilization policies.

r,a

(45.2 to 63.2 million).

phasized

causes

..

here

capital. In the
whei®
does not rise 2%%

and

service industries

(3) The Contribution of War

(fringes of various
kinds) by 19 times. In this period,
pensation

even

the proporto the worker, to man-

the question arises of

com—

is

though

productivity,

espe-

is

of gross

1955

especially

and

industry,

those subject to the inroads ot
automation, may gauge his pay
demands more or less to rising

Per hour, real wages per hour advanced an average of just over

suggested by cially oligopolistic ones with
hourly earnings of strong unionization (productive
manufacturing by 197% from 1939 ones) and part in lower
prices.9
rise

a

and demand ever increasing
with the result that wages

wages

declined but in relation to net rise beyond the level given by
worth rose from 1929 to 1955.
productivity. In the face of a less
For 34 manufacturing industries than robust monetary and fiscal
(based on Garbarino), the reduc- policy, the ensuing rise of wages.
tion °I Prices is largest in the insofar as not related to rising
highly productive industries, and productivity, is translated into a
a
correlation is found between corresponding increase of prices.
productivity and earnings. With
The worker in the highly proan

178

oray is more sensitive to small in¬
l'lationary pressures. That prices
rose four times as much in the
United Kingdom as in the United
States may be associated in part
with the objectives of unemployment of 2%> in the United Kingdom and an acquiescence to 4%
in this country. A small excess of
demand or miscalculation is more
likely to bring inflation in the
British than in the American

wages
rose
more
than productivity. Profits in relation to sales

explained by

Just what the degree of

Yet

experience.

war

respects the record has been better

jess than

200% in annual income ($1,264 to

Why the Present Impasse

per

ycai> *s to° much coming after the

x~

"

oi

days prior to that conflict.

1

Even a D/2% rise of prices

a

the New Deal

ii/2

level rose 4.6%,
!

(17%), Spain

j.

Germany

+

to

a

In'dia

World Inflationary Conditions

the sort of pro¬

gram outlined by Chairman Martin could or would put a
halt to the present boom only at a serious risk of

•

x

t
1

o

•

Finland

7

>

———

a

to

£

i

xt

i

i

9

Japan

o

r

1

~

of such

i

—

Continued

27

it'iK'~~

the bud, and the dangei of tryin^ to

nip it after it has reached full flower.

good many who, whether or not they
with Professor Ruggles in all his reasoning, are

much inclined

raised

xi

in

1

138

——-

urazn—

history amply demonstrates the necessity of

,.

a

are

Shlle-i

of funds

take into account the more active use

we

-—

prosperity and growth of our economy."

1948 to 1956:

France

.

Congress can—and I assure you that it will—make every
effort to check excesses in the field of money and credit
that threaten the: cost of living and thus undermine sus¬
tained

^rp^se^af0eu^es

'

^

matter is that

of our free

creation of the

0f the aftermath of the war had
been exhausted, and yet the aver-

century. Small wonder, then, that doubts and fears arise
when effort is made to reverse this trend. The fact of the

quarter.

in all

sumed that the immediate effects

biting.
If

"The
assure

In the post-war the inflation

^eldia!1 By l948n?t mJvil!Latiu

during the past year or two, it may be said that the
economy of this country has been under the influence in
substantial degree of inflationary monetary factors of the
sort describecTby Chairman Martin for some quarter of a

•

time

t_-x-

xt

branches of Government, in con¬

(4) Post-Demobilization Inflation

and

the

Wage Outlook," The Commercial and Financial Chronicle, March 7, 1957.

SOURCE: M. Ezekiel, "Distribution of Gains from Rising Technical Efficiencyl»
^regressive Economies," American Economic Association Proceedings, 1057 (>limc0
B'aPked version).
.J

-

Number 5668

Volume 186

...

(919)
mation or declining markets, will

....

of wage over productivity
reflected in an increase in

excess

,rise is

prices.
this explains a point
made by Mr. Edwin Dale, Jr. to
the New York "Times" that the

the

component

of

rises

10%

output and

Obviously if
per

of

$16

from

In Order Price

Rise,

Ratio of Price

1948 to 1956

.

Output

1.

Chile (Sept. 1956)
2. Brazil (2nd Qu.
'56)
3.

France

to

$48

billion

2

198

7.8

0.2

279(1955)

4.7

36

47

1.3

54

1.1

ternational

29

0.3

61

2.1

modities.

13

0.4

47

12

0.2

108—

11

0.1

United States

36—

9.

The

Thus

about

though

establishing

company

The

the

number

of

125

to

21

with

by

output

prices; the

with

record 270 times

The

that of

United

bad

as

rise

a

as

of

Ger-

performances

of

not good,

were

Japan, Italy, and the

States not bad.

will

A rise of wages does not

bring a
corresponding increase of prices,
though there is no doubt but that

punched-

an

Chile,

Brazil and France

card machines within the sections
>from

of

accom¬

use

frequently have

com¬

indus-

recourse to over-

i

Approximately $50 billion

.

.

,,

Valueo Currencies, that IS, they do

deflated.

' not allow their

27 times that of output, or

and

computer installation

made

was

rise

a

times that of

10

many s.

lation had this experience:

'reduce

record

with

to

were

,

prices

electronics instal¬

an

,

by

a

insurance

,

worst

beginning to make

one

best

Germany

indus¬

•

.

domestic

the

sense

price in coun¬
resorting to exchange de¬
preciation are much higher than
they seem to be. These countries

T.2

13

figures

m,

impression.

an

Germany (1955)

and

of for-

predate

Reserve

even

greater lending
cial lenders.

currencies to de-

much

as

they would

as

the

as

hesitates

Federal

and

by

restricts

non-commer¬

Because the approach to restric¬
tion by the Federal Reserve is

general,
who

the

potential

injured

are

policies

are

borrowers

by

restrictive

outraged. The farmer,

the small business men, and state
and local governments all express
their
grievances.
Thus govern¬
ment

one

tries

Computed from International Monetary Statistics.
*NationaI income figures were not available in all
instances.
W'e had
tiial output for Brazil, Chile,
Japan, Italy, and India, and the GXP

dealing with this
point, 1 should note the following.

is

3.6

SOURCE:

am

automation

In

-

of prices and wages to the rise
of prices of goods since 1939.11 *

tries does not rise greatly,

4

71—

•up

service

goods and higher prices.
The
higher prices of exports and im¬
ports
through changes
in
ex¬
change rates affect the general
price level to a degree determined
by the relative importance of in¬

to Price Rise

72

United Kingdom

7.

on prices. But as Mr.
observes, in part the recent
rise in services reflects a catching-

in

corresponding
of prices.
More ex¬
ports and less imports mean less
concessions

105

5.

in

Productivity

without

59

Dale

j

pensive

33

an

I

guarantees

are discouraged since for¬
eign currencies become more ex¬

Ratio of Wage

Wages

merrily pushes ahead in loans and

ports

27

219

59

(1955)——.

to Output Rise

1104

-.J

The point to be stressed is the
large rise of acquisition of assets
by lenders other than commercial
banks, and even the government

more pesos, say, and peso
prices
do hot rise correspondinelv). Imcorrespondingly). Im¬

ma-

327

impression

While

Prices

41—

—

heavily.

and these taxes make

10 years,

on

incomes or with wages that

respond slowly. But the vast
jority would gain.

Output, Prices, and the Ratio of Percentage

State and local expenditures have
risen

and

year

fixed

up

reasons.

Exports
are stimulated (each dollar yields

(1948 to 1956)

less than in goods,

tax

Some would lose, i.e., those

lses.

rise

prices?

for the following

Rise of Prices and Output and
Wages and Prices*

the prices of services reflect

also

the

of

Percentage Rise

price rise of recent years (1952 to
•1956) has been especially marked
for "non-things." Productivity in
services rises

™ce.

£

of

rise

output

Perhaps

and

,

What

the

A devaluation pushed prices

econopleased,

27

■-

■.

(<l?„u?Z™/LPriCeand mist at if"' the averaSe
a!'d pric;es least
Output Rises and Wage
would be

behind the highly productive
ones in the
rise of wages.) The
lag

"

v

r

The Commercial and Financial Chronicle

officials

rates

(local)

five

charge
are

they

years:

are

cluded from markets
to

that

their

by 70% in
either ex¬

up

or are

forced

higher rates without the
privilege of corporations of being
able to put perhaps % of the cost
on tax bills
(inclusive of savings
pay

individual

on

income

tax),

and

eign credit and grants in the first

under

postwar

kets in response to trade, service,
and capital transactions. By main-

system of priorities, voluntary if

taining

possible,

ports

decade14

provided

im-

without

corresponding expurchasing power for
the non-dollar
world; the result is
anti-inflationary in the recipient
pansion

of

the

of free

pressure

mar¬

their
exchanges
at
an
artificially high level, they keep

prices

down.

But

a

is

cost

in-

countries

volved: interference with the free

credit

market

but inflationary in the
granting countries where
goods are given up.
or

through controls of
ports and imports results in

This excess of demand is fed economic production.
by government deficits (whether countries experience
below

or

above the line

in the

as

which

is

exun-

most

of

remainder

Without

consumer.

the

on

doubt

a

a

inclusive

of consumer
the monetary
authority, when dear money is
required to deal with the infla¬
tionary forces, would greatly re¬
credit

duce

control

by

the opposition to these pol¬

Hence these

icies.

price rise

On

a

contained

the

by

irritating

the pressure of rising wages helps

the issue of the

potency of
following is of some

weapons, the
interest:1?

British case), by the creation of and costly controls. Prices are in
chine
rentals
from
In the British crisis
of
1955$235,000
to explain inflation. That wage rises bank credit, and also by inflow fact higher than they seem to be,
differ in their effect on prices is of reserves as reflecting expan- or better
.$19,000. * Wage
expressed, the apparent 1956, the authorities relied heav¬
and
employeeevident in the ratio of wage rises sion elsewhere. Consider, for ex- moderation of price rise conceals
benefit
costs
will also
be
sub¬
ily on monetary policy, bringing
panying

decrease

in

annual

ma-

■

to

stantially reduced by the cut in
personnel from 198 to 85 persons.
will

'It

free

than

more

price rises: At

extreme

one

is

war

of

1.1.

Kingdom, with

The United

figure is 3.6.

punchcards,

States

Where productivity

policy is restrictive

be erased and reused.)

that

pect

savings

partially off¬
set
by the amortization charges
against the computer, the regular
'-maintenance fees paid to the com¬
puter manufacturer, and the costs

that

'incident

and

time"

to

are

the

about

crease

of

the

prices

ratio

of

ex-

unexpected

is

the

price rise for

small.

The high
price increase
be explained by

was

to

wage

Japan may
the large rise of productivity that
followed upon the great economic
decline during the war and early
postwar.

ex¬

50% saving in the

a

wage

But it should be noted
increase of both wages

for

the classification sections is

on

might

of

inprice increase would be

Rather

Germany.

The net effect of the computer

pected to be

one

ratio

low ratio of wage to

-mechanical failure.
,

the

to

small.

4%' "down

of the computer because

section's

budgets. Related to the
operating division X, it
.amounts to about a 9% saving for
of

cost

the

division

as

(7) The Excess of Demand
What

whole.

a

the

are

major

of

causes

inflation?

In

the

•gain

of

i

20

•over

Obviously the pressure
money upon
limited supplies
must be a crucial factor.
When,
given the supplies of labor, of
management, of plant and raw
materials, the purchasing power

telegraph industries the
man-hour
years

of

productivity
but 30%; in

was

•telephone

services, but 18%. In
•education, it is difficult to meas¬
ure
the change
of productivity;
but the following figures are of
interest.

some

Education and general expendi¬
tures

resident

per

in

student

higher education
in

1939-40

rose from
$382
$979 in 1953-54. In

to

stable dollars this is
third.

a

rise of

(This large rise is not

vealed

in

our

index

million

years,

or

costs

rose

of

by

roughly

a

of

faculty

flow

rise

of

1956.13

Countries

devastated

revolution

and

and

munism

try

quality of the service, we may
safely conclude that this service

riods

in

these

figures)

did not share

in

the

productivity for the

of

often

large gains

in

produc¬

tivity given the backlog of school
the shortage of teachers,

rooms,

-

nf
ot

.

^Lew York Times,
H.

March 10, 1957.

E. W'. Statistical
Summary of Ed¬

ucation,

fT

■

19S1-S2,

and

Summary of Curof Higher
and Economic Report

St.atistics of Institutions

fne

a

by

1956'
President, 1957.




six

unavailability

period all three factors

•

.

.

*

in

in¬

some

by

Com-

telescope
vast
in brief pe-

to

programs

means

living.

of raising Stand¬

Their savings

are

inadeauate, given the scope
programs. They seek not
increased investments but

only
also

maintenance

and

even

ket

Why

One

countries

of

13 Cf.

14 U.

and

Economic

Ch.

of

Europe

in

inflation

more

States
reason

Inflation

and

been

not

effectively

in

the

elsewhere?

1937

to

1956

course,

a

re-

60

Brazil

14

France__

the

Switzerland

Japan

associations

India

transactions

1.7

105

0.86

average.

credit

Federal

crease,

(1955)

agencies

(FY

discussed

have

these

1957,

pp.

67-92.

1946 to 1948

or

1946 to

1941-1945

1946-1948

or

Foreign
Bank

Reserves

formerly and the impact

Bank

Exchange
Reserves

chtie."™™"!"!

39

24

23

61

16

—26

29

53

47

79

6

16*

51*

94

1

65

""""""I

on

bor¬

Not

ure.

of

22

65

52

33

15

21

24

39

37

21

23*

but also
available

fiscal

In the
have had two
periods of dear money in the last
five
years.
Yet even as these
policies are being pursued, the
government credit agencies were
expanding their loans and guar¬
antees at generous rates.
In the
fiscal years 1953 to 1958, govern¬
ment credit rose from 40 to $85
more

on

United

States,

policy.

we

Apparently, the Housing

billion.

Administration and the V. A. were
not

speaking

on

Messrs.

Humphrey,

Martin.

order

In

terms with
Burgess, and
keep
the

to

budget in bounds, the government

increasingly had recourse to guar¬
and insurance rather than

antees

former were kept

for the

loans,

budget.
Another difficulty

out of the

stems from
recognize inflation¬

to

In 1953, despite
the Administration
seemed to sense inflationary pres¬
sures and
hence the introduction
pressures.

ary

stable

of

prices,

vigorous dear money policy.
1950's, declining agricul¬

a

the

In

tural

prices

concealed rising in¬
prices. Under

dustrial and service

usual

changes.
serves

control, most

of

non¬

countries were deprived of

symptoms

of declining
of the ex¬

and weakening

that

Not
and

losses of

weakening

of

re¬
ex¬

was

80

20
'

integrate

Many in 1954-55 complained
Britain's
failure
to
depend

—25

78

.

impotency

only

changes were not problems. But it
not easy to differentiate be¬

125

18

o

re¬

rowing and spending can be out¬
weighed by Public Authority and
the impact on consumption offset
by the level of earnings and fiscal
policy.
Moreover,
higher .taxes
also dull the effects of monetary

reserves

Credit

Govt.

Columbia"!"™™
Cuba

greatly

the direct impact of mone¬
tary policy falls on a
smaller
proportion of the economy than

the
1946-1949

Foreign

Exchange

Credit

Govt.

been

ernor,

79

118

tween

—83
•

deterioration

Continued

ya

of ex hanpes
on page

28

Arithmetic mean" of
countries

—

January
1957 Economic
President, p. 477.

16

i

Report of

*1946 only.

the

SOURCE:

Monetary FundI litternational News Survey, Oct. 14, lMS-.ct.
The Economist, Jan. 10 and Apr. 14,195®.
17

Grants

had

In the view of the Gov¬

stricted.

dollar

1949

3.

S.
Government, Foreign
Credits, Dec. 1955 Quarter.

England, in an unprecedented
statement, complained that the
scope of monetary policy in the

conditions

Percentage Contribution to Inflation, 1941 to 1945 and the
Postwar Period

borrow¬

of

the failure

0.01

3.2

♦Expense

assets

problems
fully in Joint Committee on the Economic
Report, Hearings, Monetary Policy and
the Management o.r the Public Debt, 1952,
pp.
380-388;
United
States
Monetary
Policy and Recent Thinking and Experi¬
ence, 1954, pp. 54-59; January 1957 Eco¬
nomic Report of the President, pp. 476494; and Senate Finance Committee Hear¬
ings,
Savings
Bond
Interest
Rate In¬

12

269

ancl

Yet the Governor of the Bank

ers.

contribute towards fail¬

1956) =74;
mortgage
debts=52;
ibid., commercial banks=33.16

33

0.70

banks

weapons

67;

0.69

1.7

of large direct

use

on

to

loan

3*

78

the

by

failure

The proportions of the problem are suggested by the following: % rise 1952 to 1956—gross national product=19; adjusted demand deposits and currency=7;
banking \ d e b i t s=34; insurance
company assets=28; savings and

22

25

^f"iany

ened

policy.

Exchanges

u"1

What

A second relevant point is the

15 I

Chile

%.

inadequacy of the weapons available.
The approach has to be
largely general, not specific. Con-

(1955), No. of Times
Prices

the Bank Rate up to 512

is more, this policy was strength¬

postwar

is, of

strictive measures,

Rise of Prices and Exchanges,

living

Survey

Treat

trol of consumer credit, for ex1937
to
1956
(or 1955) was as ample, is not had in this country,
follows.
Since
prices
rose
by though it is elsewhere. The Fedabout 100% in the United States, eral Reserve has only limited confrom the roughest kind of guide trol °yor financial intermediaries
of appropriate exchange rates °, e.r than commercial banks. Yet
(and one does not allow for the the intermediaries are of mcreasrelative changes in fundamental in& importance, and they often
economic conditions, for example, operate counter to the manner in
the relative changes in produc- which
the
commercial
banks
tivity and bargaining power), we pressed by the Federal Reserve
conclude that, when
prices rise operate.13

six

1956,

mar-

rise of prices and exchanges from

Consumers spend more;

■

under

luctance to attack the disease on
the grounds that an anti-inflationary policy would upset the
economy. The weapons are not
too sharp, and an attempt to deal
W1L ,;
problem might bring a
deflation and unemployment, not
stability.
This fear results in
™u.cj?. P011tical opposition to re-

For many countries, the devaluation or depreciation of the currency is an inflationary factor. I
estimate that the average depreciation for 41 countries from 1938
to 1954 against the dollar was no
less than 87-91% (weighted by
trade), or a rise in the price of
dollars of 673 to 1014%, depending
on the weights used; and note that
the dollar itself has lost about V2
of its purchasing power in domestic commodities and services.
individual

to

has

United

,

and Inflation

For

which

had

pressures

Failure

treated

'

goods

forces.

(9)

Depreciation of Exchange

im¬

standards.
investors
spend
more,
and
governments,
both as investor and provider of
public consumption, expand their
outlays. To some extent, many of
the countries ease the inflationary
pressures by borrowing and particularly from the United States.
provement

been

have

higher prices and freedom of

con-

the important factors,
/ox

of

would

In the

In the postwar expansion of bank credit, first, and rise
of government debt, second, were

war

of their

in average attendance)
by 57% as against a rise of
prices of 87%. But even this does

■

of

in

day

etc.12

ards

as

rise

rose

not suggest

investment

economy

50%

this period. In the public
schools,
dotal, expenditures (per
day pupil
per

re-

output and high prices in

and
since
there is no
evidence of any large rise in the

included

these

of

t ireatened

not

for

the effects must be felt by more than twice as much as
in higher prices. Once excess ca- the price of the dollar, the expacity is reduced to a low level, changes have not been adjusted
the continued growth of purchas- adequately—Chile,
Brazil, Italy,
ing power is found to be reflected Japan, and India. In the German
in rising prices. In Western Europe, and
Swiss cases, the exchanges
the reduction of excess capacity seem to have become undervalued
inclusive of
manpower
contrib¬ (cheap).
uted to the slowing down of the

stances

are

below

sources,

corre¬

(capital

the

exceeds

two-thirds in these

without

sponding rise

re¬

numbers

prices.) Since enrollment
one

one-

table

tributed.

ratio

a

/supplies is the reduction of
rises greatly, the ratio of wage
monthly punchcard requirements
-by nearly 2% million. (The reduc¬ increase to price increase is likely
tion in the number of punchcards to be high. An increase of wages
offset
by
rising
productivity
required the purchase of 1,000
reels
of
magnetic tape, which, yields a relatively small increase
in prices.
Also where monetary
however, :unlike the
These

the

other is the United

15,000

feet of floor space for other
'activities. The principal saving in

■square

•may

ample,

Latin American countries.

Japan, with a ratio of wage rise
to price rise of 4.7,
and at the

Calculated

from

materials

America," International Monetary

In

J.

Keith

Horsefield,

Fund Staff Papers, September,

"Inflation

1950,

pp.

In

Latin

175-202.

International

*

1957

(920)

Continued from page 27

clearly and
outlays
$1.7 bil¬
lion of highway outlays—gives a
misleading impression of Federal
be presented

budget

large

honestly.

end

of

loss

reserves

related

to

is

domestic inflationary forces, spec¬

capital movements (rela¬
tive in part to above) on the one
hand
and administrative
varia¬
tions in the degree of controls.

these

ulative

time

the

budget—as the

gradual transfer of budget
financing (loans and investments)
to extra budget financing (insur¬

started to make

we

the

appropriations, came to $650

spend¬
ing from $800 to $2,300 an acre on
land from 5,000 to 8,000 feet in
altitude, where the growing sea¬
In many countries (e.g., Brazil),
son
is limited to not more than
it was next to impossible to know
90 days, and where the chief crops
what the movements in exchanges
will be hay and apples,
Were.
Rates were numerous; the
proportion of transactions at dif¬
ferent rates was not known fre¬
and actual rates would
changed by reclassifica¬
tion of official rates for different
classes of commodities.
Even for
Western Europe, official and free
rates often diverged, and the ap¬

coming to this point, that the most
feasible and the most profitable

You

gin.

improvements

control

to

are

of

the

suggested

in
added water for the lands of the
Middle West, we could get four

by

before.
integrate pol¬
icies of all departments and agen¬
cies that contribute towards in¬
creases in monetary supplies and
their more intensive use.
A better understanding of the
What has gone

It is necessary to

It is. of course, absurd
suggest, as Secretary Hum¬

phrey has, that the appropriate
policy is tax cuts at the top of a
boom.
That is just when tax cut¬

only factor that was considered on
this
project, I would say that
obviously

which

of

rise

rates,

tax

might conceivably be sup¬

ported as a facet of anti-inflation¬
ary

sell
in

policy, is almost impossible to
to the politician and public

1956

1957,

or

adjusted to the needs of a stabil¬
ization policy.
" .
.

The

government might keep ex¬
penditures from rising too much
with
an
improved
pattern
of
spending.
For example, m ore
might be spent on schools and
considerably less on highways. A
proposal to spend $100 billion 011
highways and to spend nothing on
schools

portion
ment.

seems

rather out

of

for the Federal Govern¬
Outlays of $6 billion per

largely to keep farm income
up
and farm production, down
seems
a little silly when at
the
poses

time

the

government

Rockies

They are very pleasant places. But
that we should

I had not thought

Peak

that

or

of

valley

we

should

engage

the

Colorado

upper

River.

in¬

at

-

savings is all to the good. In
connection the insurance

this

contribution.

the long-run

in

interest

sparked.

movement should be
of the

One

inflation

is

important causes of
the large and am¬

flation.

/

Prime

The

I think, Senator,

by the time this increased popu¬
lation that I speak of arrives, your
been

time* your

that

by

place,

in the first

finished,

and

have

not

more

:

acreage
reasonable in
".

;

;.

;

:

"

Chairman Douglas. I do not ex¬

pect to see land in the Bloomington

area

Great

in

Minister

and we

whole of the past 10 years,
are

consuming

today

nation

than
But

with

brought

more

have

we

as

a

done

ever

employment has

full

it

problem

one

to

Chairman

~

if

And

it

did, it would be more fertile than
the land in the upper Colorado.

a

we

be

more

further

difficult

achieve

to

living

in

advance

a

stand¬

employment itself
may be threatened. The problem
is that of continually rising prices.
It affects everyone, and everyone
and full

contribute

must

it

if

solved.

is

be

h "The

government is pledged to

foster conditions in which the
tion can, if it

na¬

wills, realize its
lull potentialities for growth in
terms of
production and living
no

so

the

But

less seek

government

to

that

ensure

of domestic. demand
does not reach a level at which it
pressure

threatens

price

stability

and

en¬

lieve.

grow

Mr.

Chapman

[Oscar Chapman,

Secretary of the Interior]. Yes.
Chairman Douglas. Are you ac¬

quainted with what the acreage
costs of irrigation are in the upper
Chapman. Yes; I am.

Chairman

Douglas.

Including

acre.

our
a

on

Economic

port. January 1956 Economic
the President, pp. 419-420.




this

and

rado

Re¬

Report of

than the

land
•

in the

is
the

it

in

Colo¬

upper

cultivation

into

drawing

land

in

Colorado. And yet we are

Illinois,

form

you
a

I

xinfeaiion

Senate for

States

the
so

which

Congress

long?

country.
nomic

necessarily

in¬

adjustments.

continual

will

will

need

curbing; at other times this

pres¬

strong

too

and

will be weak, and the econ¬
will need a stimulus. It is the
government's
job
to
keep
the
pressure

right,

and

to

the

relation

time

fiscal,

monetary

same—the
the

means

the

full

encouragement, by all
which the government

commands, of the general climate
most

favorable

omy.

the

to

development of

a

maximum

balanced

econ¬

This demands continuing at¬

tention to the problems discussed
19 Cmd.

9725,

pp.

2,

10-11.

the

size

of

the

econ¬
a

times, insur¬
by 27 times,
In France, despite a rise of prices
of 22-23 times, insurance rose by
32-37
times and
roughly main¬
tained its position in the economy,
In the United Kingdom, insurance
increased

has

ance

by

sufficient

dominant part played by the

the

Beveridge program.

new

Finally,

the rise of insurance in this coun¬

try was about three times as great
prices but substantially less
than the increase of output. Here

as

again the growth of the social se¬
curity program is relevant.
In

general, the effects of inflation on
insurance seem to be great only
proceeds

inflation

when

at

a

devastating rate—e.g., an
average rise of 200% per year.

fairly

(12) Insurance and Savings
The
years

have

savings in the

of

growth

of high activity since 1938
cut down the rate of infla¬

tion.

1938 to 1956, gross

In the years

private savings rose from 8.9 to
$61.7 billion, a relative increase

product.

1.5 times that of the gross

nurchasing

nower

the face value
at time of contract. There is some
dollars

the

as

011

offset in that earnings rise to some

dividends may be in¬

and

extent

creased and rates

on

future poli¬

cies cut to some extent. But here

reduction in interest rates and

any

higher costs of operation are also
relevant.

steady inflation might be as¬

sumed to be

injurious to insurance
depre¬

and to savings. The rate of

ciation

has

the

for
■*

some

are

B.

Force

Insur.

of

S.

part the competition
ternative

in 1938 there were dis¬
in securities, but by 1955
savings channelled into security
markets amounted to $7.5 billion-

ample,

savings

Similarly, in 1938 only $0.40 bil¬
lion of savings went into currency
and

B.—

$

360

111'

;

2,600

Family $

per

1956 Life

Economic

,

48.4

352

5,000
6,900

212
165

Insurance

Report of

$6-7

Fact Book

Stucker

With Kenneth B.
.(Special to The Financial

Chronicle)

Helen
staff ot
Kenneth B.
Stucker Investment
Securities, 9822 Northeast Second
O.

the President.

Burns

Fla.

—

joined the

has

Avenue.

general the rise of insurance

in force has fallen behind that
GNP and the insurance per

behind
come

of

the

rise

of

Joins Loewi

family

disposable in¬

(Special to The Financial

family. Thus, insurance

per

family rose only 79% as much
disposable income per family.

But when allowance is made for

rise

of

results

Lane

Loewi
East

year

the

surance

A.

Wal¬

Incorporated, 11

Co.,

Milwaukee

Street.

Loewi Adds to
(Special to The Financial

$5 billion. In the same

benefits

amounted

under
to

life

in¬

$5.4 billion.

Again, by 1955 veterans insurance
in force had risen to $43 billion.20

""~20 Ibid.

&

—

joined the

has

public insurance, the
are
not discouraging.

In 1955, benefits under Old Age

almost

Staff
Chronicle'*

JANESVILLE, Wis.
ton

and Survivors Insurance amounted
to

1955, $3.93

in

MIAMI SHORES,

10.7C40)

Insur.

SOURCE:

;

250

389

in

1.600

per

but

deposits,

(the 1954 figures was
billion).

,

Family Dispos. Inc. $

In

1955—and in
of other al¬
Investments.
For ex¬

billion of savings in

ft Rise

390.9

T

—

_____

Purch.
U.

in

1955

65.2

$
Ins.

$

the

billion

relevant figures

1938

GNP

In part the explanation is
competition of social security
and private pension funds — the
latter
alone accounted for $3.38
extent.

United States:

*

in

but

discredit savings.

not enough to
Here

substantial

been

1955,

By

Inflation and Insurance

dollars of stable

and

ultimate

to

In Brazil, however, with

omy.

private insurance ac¬
counted for $4.66 billion of sav¬
Obviously inflation erodes in¬
ings as compared with $1.54 billion
surance.
A policy contracted in
in 1938.
Relative to all savings
1938 yields about half as many
this contribution declined to some

social policies in order to achieve

But

a

Insurance

rose slightly less
than prices and
substantially less than income; but
are here tlie explanation is in part

secure

(11)

as

in

times.

rise of price of nine

present standard of living."

our

adjustments

will have to be made from time to

265

in
force in dollars of stable purchas¬

sure

omy

times, and Japan, with

of

rise

imports
maintain full employment and
to

fail

o w a,

have

of 33-34

alternative at all, because we may

net

and

case

the grim danger that the
first of these apparent alternatives
will turn out to have been no

At

times the pressure of demand

insurance.
This
to have been the
in Chile, with a rise of prices

If the prosperous eco¬
conditions
necessary
to

exploited

aim

that we should
of States to protect

must

portunities to sell goods and serv¬
ices profitably. In these conditions
it is open to employees to insist
on large wage increases, and it is
often possible for employers
to
grant them and pass on the cost
to the consumer, so maintaining
their profit margins. This is the
dilemma
which
confronts the

will always remain essentially the

ourselves from the power of these
dominated

volves

in

seems

pacity grows. This means a strong ing power has fallen greatly in
demand for labor, and good op¬ both instances and even more in

this result.

think

group

inflation

without

that with a galloping
the people would lose
confidence in savings and

some

goods and services is high and
rises steadily as
productive ca¬

with¬

and

185
1956 Life

inflation,

for

the

Indiana, Wisconsin, Missouri, and
Alabama, an^ so forth, and so on.
Do

Douglas.

Committee

in Illinois reduced by

probably,

land

ii

18 Joint

acreage

tenth,

better

That is right.

Now, the
richest land in the country, which
Chairman

to put more land in cultivation
in the West. We are going to have

us

putting

interest, they range from $800 an
acre
in some cases to $2,300 an

Mr. Chapman.

are

the irrigation en¬
constantly pressing

upper

Colorado?
Mr.

thusiasts

'gf

233(1954)

be expected

demand

the level of

that

ensure

Life

dangers the balance of payments.
To maintain full employment

and yet

K.

SOURCE:

.

.

,

to

question. I do not want to brow¬
beat you, but I want to ask an¬ I am also struck with that fact that
other question. '
on
the
one
hand
here
we
are
You spoke in glowing terms of
proposing to withdraw 40 million
the upper Colorado project, I be¬ acres from cultivation in the soil
bank,

^
2g'666
o'ik^

__IZ

therefore

government

the

ployment

A
:

the

Douglas.

yet found

solution; yet, unless
do find the solution, it will

must

,Mr. Chapman. No.

not

have

we

standards.

to $2,300 an acre.

go up

647

Japan
U.

inn

10,811
3,370

Chile

France

looms up

this to say:19

Britain had

ards,

program-will

(1937=100)

2,880

maintain full em¬ clearly

order to

"In

of maintain

programs

many

deserts of the midmountain region.

20-year

prirP5

(1.937=100 >

Brazil

employment
trade unions and
business men, price stability and
full employment become incom¬
patible. The solution lies in selfrestraint in making wage claims
and
fixing profit margins
and
prices, so that total money income
rises no faster than total output.
ment beyond
the levels set by In the absence of such self-re¬
saving and the excess of imports straint,
it may seem that the
brings inflation.
When savings country can make a choice—albeit
cannot be forced as in the USSR, a painful one—between full em¬
a
compromise must be made be¬ ployment and continually rising
tween additional investment and
prices, or price stability secured
additional inflation and also be¬ with some danger to the level of
tween government deficits often
employment that might otherwise
related to these programs, and in¬ have
been
achieved.
But soon
investment

bitious

satisfactory

[Senator

Mi\- Chap¬
I want to ask you another

and the

surance

which

is germane.
Now,

make
an
important
The growth of in¬
almost universal

companies

fertile
sections of the
we would support the in¬
creased population better than by
consigning them to
the arid

already
country

Mr. Chapman.

pricA

in Force, 1955
,

tional economy.

problem of over-all demand
and supply, the focal point of the
inflation problem.
So long as the inflationary pres¬
sures continue, the encouragement

before.

,

It would seem to me that by

of

gains of in

Life Insurance

ployment as a feature of our na¬

distinguished from

the

creasing the yields per acre in the

pro¬

cultivation

and should be

economy

growing of bananas in the

in the

the

surance?

whole ideal of full em¬

with it the

of the
"Full employment has, in fact,
country that we would settle large been maintained in most parts of
numbers of people on top of Pikes
the country over practically the
the

arrange

so

mind.

Paul. Douglas]!

like

I

and

your

Douglas

love the
the desert.
I

Douglas.

Chairman

the Colorado
Project, which would put

Chairman

you

years,

to put them somewhere.
That will be feasible then.

have got

and Congress accepts a $700

land

20

than

less

within

and 200 million

now

will be

The following

man.

million

166

costs

into
great expense.18
poor

time you

get the next 40 million people in
the United States, as I told you,

million program for
River

Chapman. By the

Mr.

relation

and

movements

and

prosperity,

long-term

our

countries, often rising to 20
or
more
not the
per cent of GNP. The
have to
objective of accelerated invest¬
ment as a means of raising stand¬
velopment of the area as a whole.
Chairman
Douglas. Well,
the ards of living is a worthy one.
But the expansion should be re¬
question is whether that is an
economic
application of capital lated to the volume of savings
and the excess of imports. Invest¬
and labor.

pro¬

year

same

go

talking about. But that is
only consideration. You
consider the whole de¬

you are

Again, anti-inflationary policies

might suggest cuts in public ex¬
penditures. But here the issue of
appropriate price policy conflicts
with
other objectives;
adequate
defense, required social services
inclusive of highways and schools.
Often these outlays are not easily

not do it.
back to the land

should

you

should

You

ting would contribute so much to
A

Chapman. If that were

Mr.

people and adds to the distrust in
the dollar. This is one problem

stability
of the dollar related to private
and
public insurance point to¬
wards a rising political movement
the on behalf of a stable dollar. This

five times the crop.

to

enough.

inflation.

acre

per

"

possibilities of using fiscal policy
Would help greatly. That does not
mean that understanding alone is
to

amount

the

tenth

frightens

the size of the economy

of

But the

costs of the irrigation fea¬
tures of this project are fantastic.
And for the expenditure of oneacreage

Several

better?

inflation

.

.

.

Chairman Douglas. Yes.

(10) Therapy
done

appropriated and developed.
are coming close to the mar¬

ready

propriate weighting was unknown
because the transactions at each

be

obviously been al¬

projects have

rate were not known.

can

resources?

Chapman. Senator, you are

Mr.

.

often be

the

of

What

a

Insurance Fact Boniguarantees).
that can be given by continually ancl IMF, International Financial Statistics
On this score, it would also be
rising money incomes unaccom¬
In this table, I have
well to consider the size of the
compared
budget in relation to the size of panied by the necessary levels of the rise of prices and insurance in
the "economy.
Emphasis on the output and exports, which cannot force for six countries with vary,
last and must ultimately endanger
dollar rise without relating it to
ing degrees of inflation. It might

and

ance

think this is an

Now, do you
economic use of

v.

quently,

What

And here we were

acre.

an

does

contributions to spending, as

Bloomington, 111.,

just north of

at

Keeping

out of the

Inflationary'Conditions

World

nation whose
lasting prosperity depends on a
high level of overseas trade, we
simply cannot afford to allow ex¬
cessive demand at home to under¬
mine our competitiveness in world
markets or to take too much of
the output that we need to sell
abroad to secure our essential im¬
ports. We must guard against the
false sense of internal prosperity
Section V; as

in

the

suggestion is that

Another

K

Financial Chronicle... Thursday, August 29,

Commercial and

The
£8

MILWAUKEE,

Staff

Chronicle*

Wis.

—

Donald

Chapman and Roger J. Brail
have been added to the sta±1:99(S.

Loewi

East

&

Co.

Mason

Incorporated, &
members
Stock Exchange.

Street,

the New York

to

I

Number 5668... The Commercial

Volume 186

Financial

and

Chronicle

(921)
be purchased

iirms.
can

Securities Salesman's Corner

no

the sheriff until

talking about

their

protecting
them

saving money and

chance

a-*

families.
to

talk

This is the advice of

entered

who

the

a

sion"

to

you."

rities

that

building

business in 1955 and who last year

poses of

wrote over

life'insurance

words

-v -

•

•*

instead

■■"

Attitude

■

first

step

in

Territorial and

their income and their capital you
will desire, to talk with as many

people as you can about this sub¬
ject. If you can go out each day
with

the

resolve

that

is

yours

a

mission to help your clients build
a sound investment
program, your

creative abilities will be energized
||and your efforts will be directed
M

along constructive lines.
First of
alt then, believe in your mission.
Use

One

of

the

reasons

some

that the money I
well invested."
%

are

chance to work.

list

a

of

men

If you

that

sources

be

us

logical

are

and.: offer them

Let

prospects

from

suspects

SPECIFIC idea.

a

specific

ourselves and

bring this down to cases.
Today, tax free bonds are avail¬
able

on

yield basis

a

investors

income

an

instances

many

that

offer

that

above

is

jfceived

The

bank

state

an

to

*

conservative

©f this for

sibilities

and

saver

Council of

Administration

Supervisors of State Banks to
tablish

trade

a;

existence

Under

group.

the

plan

capitalizing on this
extremely interest¬

are

ing.
So

let

surance

people

give

us

man's

a

our

idea

a

in¬

young

trial. "Give

chance to talk with you."

For

instance, if we wish to try
direct mail, we have to start with
a

list.

Let

that

we

have

to start from scratch and

we

have

no

us assume

available

ple

who

list at hand

might

be

of peo¬

interested

improving their income

via

otherwise

in
tax

free bonds.

explained,

J.

the average.-A list of people in
above average income sections is

^through

the

cross-reference

telephone books
Usually published by your tele¬
phone company which gives the
listings of telephone subscribers

by

streets

and

This

avenues.

supervisory
ordinator

way "of

compiling

list that has &

better

a

mailing

possibility of

telephone

book

will

office

of

the

cupational groups that should be
above average in income
produc¬

tion

and

*n our

therefore

more

interested

proposals. These groups are

doctors, dentists, engineers, archi¬
tects, attorneys, oculists, insurance

Jnen, manufacturers,

builders, and also
highly paid service
electricians

accountants,
some

in

NASSB

be

trades such

as

county,




and

methods

warrant

of

bank

earnest

our

suggested

that

icated

upon:

broad

a

the

base

spoke for only
not

matter

be

hopeful of
accomplishments. This

materials
is

very

related

to

schedule about which
banks
have
raised

feeling
of dues
when

dual

000

supporting the
banking system. The NASSB
is, by the very nature of its mem¬

that

a.

dues

question,

indicated

scale

jumping from $100 to $500
exceed

resources

should

vide

the

the

number of

a

for

a

be

$100,000,-

modified

more

to

pro¬

smoothly accel¬

bership, strongly committed to the
dual banking system concept and
it is assumed that this will con¬

erated

tinue to be such organization pol¬
icy in the future. We have wit¬

actual dues would become and

nessed

to

the

bership the
felt

unfavorable

to

condition

create

Federal

to

ganizations.
ure

of

of

areas

activity

our

for

which

state-chartered

or¬

Some of these dis¬
result from the fail¬

Legislatures to act, but

in

other cases, they represent an
intrusion in
the
area
of
State

rights. Among the easily recalled
examples of
are

the

such

branch

a

development
given to

powers

Federal

this

also

was

noted

that

reasonable

more

banks

our

mem¬

would

the

prefer

participate in an undertaking
was
broadly accepted and

had

the

advantage

Since its establishment in

the

NASSB

knit

has

been

confederation

of

of

a

1902,

loosely

state

bank

supervisors. Its membership num¬
bers
50, representing the bank
supervisors of the 48 states and
the

territories

Rico.

Puerto

to establish

service

of

Hawaii

It is

now

and

proposed

"listening post" and
agency
in
the
nation's
a

capital.

in

state and elsewhere.

"The organization

/

"

\

function
effectively only when it remains
completely impartial and inde¬
the

interest

acts
of

at

all times in

stable

a

banking

system without preference for
group.

In

this

respect

it

gladly
give support and it is possible that
the

line

of

Company

(Special to The Financial Chbonicle)
'

MILWAUKEE, Wis.
E.

Jaeger is

Burton
connected with

now

The Marshall

—

Company, 765 Water

Street, North.

•

any

would

be somewhat different from other

organizations to which
this

With Marshall

can

With Clement A. Evans
(Special to The Financial Chronicle)

we

demarcation between

organization and its financial
would
increase
its

ORLANDO, Fla.
Barrier
Clement

is
A.

now

Imogene M.

—

connected

Evans

&

supporters

with

Company,

John Harrison Adds

Principle Always Supported

savings

to

banks

us

is

centered in

ing

of "the

in

ORLANDO, Fla.

John

H.

is

these

the

was

now

favorable

opening

of

the

Gauley
Virginia in 1941
and its subsequent i n t e n s i v e
exploitation. Reflecting this de¬

velopment, .the
handled

coal

United States

than

road

8.5%

last

year

than 11% of all the

more

bituminous

produced

in' the

compared with less

in

1941.

1956.

-

.

,

results

Witlt;1 the-

before funds* The road stands, to
benefit :

substantially ' from'; tho
anticipated' freight h-ate increase
With each

!.%• increase in

freight

rates equivalent to. approximately

$0.78

share, after Federal income

a

taxes.
Baltimore
its

bad

Ohio

&

order

lias

to

cars

reduced

4%

of

the

total. The road does not intend to

further reduce this percentage but
instead1 has switched employees

formerly ;pri maintenance' work to
their, car/shops for the, construe-*
tiorioi! hew cars. In tfcis way,"they
believe''that new, rriore ; efficient
duced

consistent

will

continue

strong.

cars'can

be pro-

with t,}ie same work force,
It may ,be noted that; maintenance
of

equiptnerit expenses in the first
half of this year were down somb
$7 million from

a year ago.

'

• •

Armstrong, Jones,
i
Lawson & White Open

indus¬

...

_

trends

that

tha,£ earnings per cornshare, could approach. $12.00,

mon

of these favorable influences

revenue

has

possibility

and modernized

has as yet run its full course, and
,
.
that, therefore, Baltimore & Ohio s
..

Estimates "rare

wilL bd: better'thaiLthht^

trial expansion. It is indicated that
none

considerably

management

growing im-

portance of the Port of Baltimore
in international trade,
particularly
with respect to import ores and
export coal. Finally,; the road's
lines are strategically located in
the Ohio River Valley, an area of
and

be

the

and

stated tliafcit expects, earhings for
the full year to match those of

Another.in-

fluence has been the

last

share earn*

common

should

better

trends

coal field in West

• DETROIT. Mich. — Armstrong,
jopes Lawson & White, Inc., haa
been fhrmed'with offices in the'

Penobscot'Building,'to engage In
phase of the a securities
business,'-as'success©,
Ohio
picture
has to
Charles, P. .-White .Company,
been the streamlining of
the/ebt
Jones,
structure in recent yean and the officers:,are, Vinton, E,
The6dore 'i Armstrohg, Seward
consequent sharp reduction in inN.. Lawson, and Charles P. White,
forest charges. Total fixed chaiges
were formerly, associated1 with
and contingent interest last year
c
& Company o£ which: Mr.
amounted to less than $20.4 miljones"was a partner. The new
hon compared with approximately
firm will hold membership in the
$31.6 million at the outbreak of
Detroit Stock Exchange.
World War II. Just as important
has been the realistic spacing of
bond maturities. The company lias
•

Another favorable

Baltimore

serial note issue of $33 million

Chicago Bond Club
Outing Sept. 12-13

j

running to 1965 and has created
one
blanket: mortgage
on
thci
CHICAGO, ill.i—The' Municipal
property which is outstanding in
three
series
maturing in
1970,. Bond Club of: Chicago will hold
1980 and 1995. This mortgage has its
21stannual field day Sept,
the benefit of a generous sinking 12th and 13th. Cocktails ana.,ginfund.-The rest of the debt Is represented by the convertible de~
benture

—

Fred H. Sor¬

affiliated

Harrison

&

Florida National Bank

which

4V2s

until

2010.

sible

to

Ohio

running

It

is

are

in

into

Baltimore &
as

in the

papt. J'
'*,7 • V' -i.
With the favorable traffic

ground,

operating

and

due

maturity

future

the

not

virtually impos-

conceive of

ficulties

dif-

it

lias

with

Company,

Building.

scheduled for Thursday

are

ner

night,

September' 12th,

nance,

•

.

be on Frfoayv Sepfofobei 13th at
the- 'MtecJiriari
Scheduled

^ Country

for

the

day

back-;

efficiency

...

1

,

,

,

?au» etc;1

modern signaling and com-

.■;•.

.

*

;

■

rSp.ecial to

^ ATLANTA, ,.Ga

common

year.

Last year's earnings aye

be¬

still

re¬

fore

in

for funds

allowance

last

to $10.85

1940

1956

Deducting these funds, the
earnings
would
have

ings

to

this

$7.50

year

a

share. Earn¬

should

at

least

equal 1956.
Despite the
railroad

general letdown in
during the first

traffic

,

Nicjv J. Soilt

qft„thprn' rnrn

Peach-

The Fust ^outhein ^pip, Feacp
Joins
(Special

stock have increased

$1.25

—

tree at Ponce de L?pn.,.,

the highly leveraged

from

Vj

been added to the staff of

;

than doubled and share
on

£as

Adds
Adds

Th^ ,Financla|. Chr1onicle);

^

roadway a n d
t"S, earning
power of the road has been expanding consistently and rapidly.
In the period since the opening of
the Gauley coal field, net income

-

1

and

m e 11

-

~

v'e

earnings

golf,

.

munications,

more

Club,

are

;'k!';;baseball, horseshoes, tenriis, soft

yard i m p r o

has

the

at

uriiVersity Club; the field day Will

First Southern
SnSiS^£dS: *•: .Firkt.Wfcern

amounted

Jr.

more

Region in
which it operates. One important

plan.

especial to The Financial Chronicle)

row,

,

Central Eastern

factor

up somewhat from

result,

a

ever,

revenue

quired to be set aside under the
old voluntary debt readjustment

Inc., Rutland Building.

effectiveness."

enjoyed
arid

the

•

further

nominal costs."
>

traffic

year

ings dipped from $5.03; to $4.38.
Comparisons from here on, how¬

major, competitors
has been getting an inCreasshare of the- freight tonnage

and

a

we

savings and loan associa¬

tions

It

that

which

instrumentalities

denied

scale.

that the broader the base of

competi¬
developed
when Federal legislative acts are
extended by administrative rule
tive

of

small part of the
institutions
we

a

chartered

-

As

trends than its

substantial

have

par¬

relationship

corporations

Qnd

government. In my

"We

ticular interest in

"The

the bank direc¬
of

from

membership, since, if the NASSB

estab¬

County

are

officers

••

sav¬

those connected with your
Public utilities and
municipal and

the

aside

the

and plumbers.

Next there

that

continuing support of the organ¬
ization would necessarily be pred¬

state

a

prac-r.

support.

;

"Our savings banks have

co¬

a

that member banks

use

supervision

would

in
New
York State have always supported
the principle of a strong, impar¬
tial and effective system of bank
supervision much of which in its

tors,

believes

standards

report

lished.

as

bank

on

office,
strengthening

obtain.

the

data

may make of the proposed
its
potential
for

ings banks give strong support to
the suggestion that a
Washington

pendent and
also

supply us with names from the
classified section of those in oc¬

that

recomfnend

practices;

of

direct

any

Committee's Report

is

producing qualified replies.
Our

mittee

committee's

"We

member supervis¬

tices and problems throughout the
country; and in related services
to the membership.
Your Com-,

it

Savings Bank.
report recom¬
mended, in part, as follows: «

•

one

a

the

service

clearing house for infor¬

ors; as a

dent of the Harlem

The

advantages

you

on

de¬

has

a

higher,

was

just about equal
earlier. With:
transportation

were

of

and Federal, income taxes
jumped by more than $3.7 million,

period of years, BaltiOhio

those

ratio

of

\:ri

;

.

a

&

quarter

six months

year,

since the early

the first

.

wages.

a

the first time

>

\'
'••• •• >
a
.■ :
•
■ ; •
/ •»-.
»•
t
half of the current year, Baltimore
& Ohio's gross revenues for the

to

year-end distribution

a

favorable

mation regarding examination and

special committee to study
proposal, headed by Edward
Pierce, Executive Vice-Presi¬

people live who have a higher
income and larger savings than

to

to

central

a

agency for all

a

the

are

<

able

based

was

In many larger com¬
munities there are sections where

available

be

of

rail

in

Over

membership, should
many advantages
from

of

run

share, the only dividend
1956, and this' year the
stock was put on a
regular quarler ly basis of a
$2.00 annual rate
paid

more

NASSB

The Council's action, Mr. Rowe
of

Ohio made

1958../

a

the

rive

general

•

However, $2.50 is not a
reasonable measure of the
prob¬
able
payout
over
the
next
12
months. Last year Baltimore &

increased in

This
agency,
along
Supervisors in the 50
jurisdictions that comprise the

es¬

the

stocks.

be augmented by a year-end extra
and that the regular rate will be

partment.:

with

might

not

to

on

f930's. It is expected that this will

New York State Banking De¬

our

permanent
office
in
Washington, D. C., it was an¬
nounced Aug. 22
by Daniel T.
Rowe, President, of the Savings
Banks Association.

Think

moment and the pos¬

a

for

situation'

the

What

investor.

At¬

service agency

dorsed, "in principle," a proposal
by the National Association of

.

advantage

the

;

ail

as

supervisors' plan to establish

'listening post": and

of The Savings Banks Association
of the State of New? York has in¬

re-

on savings accounts.
The
savings account income is subject
to Federal income tax; the income

from tax free bonds is not.

was

tractive Investment Idea!"

can

in

that

can

in Washington,
D. C,, is advanced
by New York Savings Bankers' endorsement

going to try direct mail, com¬

pile

You

.•

...

Baltimore & Ohio
is quite low in com
pari-

common
mmon
son

j.

■;

yield

of $2.50

ing Tax Free Bonds

endorsed, state - chartered banks
or through newspaper ad¬
could become associate members
vertising, or a combination of of the
association, at nominal
both, is that they find a workable dues, for which
they would avail
idea and they stick to it.
They themselves of services they
a

was

spent
'

:

in

Next Week A Specific Letter Us¬

mail,

give it

70%

see

pur-r

that

clientele from direct

a

million

a

and

in

The Council is the top govern¬
ing body of the savings bankers'

Prospecting Plan

a

build

can

permanent

firm can offer methods and
of helping people to increase

ways

over

year

Savings Bankers Endorse Proposed
Washington Office of Bank Supervisors

cus¬

tomers is to believe in your mis¬
sion.
If you are convinced that
your

last

traceable to Direct Mail.

retirement.
lists

wrote

Baltimore & Ohio Railroad

It

The

for

N. Y.

V
finding

him

capital for

other

are

With the Right Mental

The

his

up

assist

I

of

.

Start

would

eventual

There

1

•

that

*

securities.*.
Y

half.

business

some

insurance

$1,000,000 of brdinary
life insurance. Only he used the

part¬

savings and was in¬
terested in acquiring some secu¬

young man

life

our

hearing and discovered

he had

Give

of

one

,

successful second
insurance agent again:

"In 1956 I mailed out 5,066 letters
and used a follow-up on about

met him at a "crime commis¬

ners

,

of

names

our

life

year

-

:

,

Quoting

thought about calling-on.

one

with the

you

list

agency

every community of any substan¬
tial size, who have above average

incomes.

Finding People To See
feel any reticence about
discussing
securities, forget
it!
Most ; people
are "interested
in

supply

reputable

advertising

list publishers of people in almost

By JOHN DCTTON

"If you

from

Your

29

R.

S.

?

to The Financial Chronicle)

ATLANTA,

Ga.

Thomas

—

Herndon has joined the
S.

*

Dickson

Dickson

&

Co.,

H.

staff of R.

Inc.,

Grant

Building.

i

With Richard J. Buck

I

(Special to The Financial Chronicle)

BOSTON,

Mass.

—

Paul

Lee

has become connected with Rich¬
ard J.

Buck &

Building.

Co., Statler Office

30

The

(922)

First Boston

Continued

Group

jrom

page

J ToJiikImI

First

built

Boston

Corp. and
associates
are
offering publicly
today (Aug. 29) an issue of $60,000,000 in Public Service Electric
&
Gas
Co.
first and
refunding
mortgage bonds, 4%% series due
1987, at a price of 101.026% to
yield
4.81%.
The
group
was

their

5,000,000th

car

of

truck

or

the year

on

last week.

or

car

high of
compared

its

Net

proceeds

bonds

from

will

jbe

the

sale

of

used

by the
company for payment before ma¬
turity of $60,000,000 of unsecured
short-term bank loans incurred in

June, 1957 primarily for construc¬
tion purposes. The company's cur¬
rent

construction

program

six

months

of

1957, and the re¬
mainder in subsequent years. As
of June 30, 1957, the company had
construction

commitments aggre¬

gating

about $87,000,000.
anticipated that in order
its

nance

current

the

program

It
to

is

Production of the 1958 Edsel

cars

last week, offsetting a shutdown by

sell

ditions

tory,

considered

are

well

as

satisfac¬

other securities

as

in 1958 and subsequently.
The bonds will not be redeem¬
able prior to Sept. 1, 1962 out of

proceeds
ation

of

did not reach their
5,000,000th car or truck completion in 1956 until Sept. 17 to 22,
putting this year's operations one month ahead of the 1956 pace.
On the truck front last week, Willys resumed operations after
a
three-week annual vacation-inventory adjustment
shutdown,
said

that

United

States

of

excess

the

a

company's

cost of money for these

the

at

option of the company at regular
redemption prices ranging from
106.03% for those redeemed prior
to Sept. 1, 1958, to 100% for those
redeemed after Aug. 31,
1986; and
at

special redemption prices rang¬
ing from 101.03% for those re¬
deemed prior to

Sept. 1, 1958, to

100%

redeemed

after

for

those

on

or

Aug. 31, 1986.

Public

Co. is

Service

an

Electric

&

Gas

operating public utility

company engaged in the electric
and gas business in New
Jersey.
In addition, it owns all the out¬

standing

capital

Service

Coordinated

which

operates
bus

mass

that

stock

Public

M -ansport

com"jhensive

a

transportation

serves

system

in

New Jersey
and extends into New York
City,
areas

Philadelphia and Wilmington.
For

the

12

months

ended June

30, 1957, total operating
of

the

revenues

amounted

company

$311,671,345 and
$33,498,285. This

net

to

income

to

with

compares

total operating revenues of
$299,884,485 and net income of $32,-

035,326 for the calendar

year 1956.

Annual
a

A.

C.

—

Allyn

•

a

was

37% drop in total heavy civil engineering con-

^en Eaton,

held September 12th from 8:30
to
11 a.m. for out of town
visitors

the

Club outing

Municipal

Bond

(September 12th

and

13th) and Chicago members wish¬
ing to visit with their friends. The
breakfast will be held at the Mar¬
ine

Grill

and

Cocktail

Bar

of

the previous week and
Declines occurred in both

Sanford With Bache

has

Bache

Avenue.
ager

of

of

become

Co.,

Steel Operations

in

research

Baker
New

&

In

staff.




steel

the

trade

week by

that of the
"Engineering News

week

current

hot-rolled

silicon

and

sheets

insure

to

steel

some

•

companies

delivery in the
fourth quarter, "Steel" magazine stated on Monday last.
The national metalworking weekly said some customers are
taking the advice.
Steelworks operations, it further notes, are
inching up, even without much automotive ordering, reflecting 7
strength across the board.
Ingot output was at 82% of capacity in the week ended Aug.
25, the second consecutive week in which the rise was 1.5 points. .
The

yield

the

end

Only
for the

was

a

small amount of steel is

1958 model

on

218

paper reports.
only is the auto industry looked to for order increases,
but the appliance industry as well. Makers believe they have seen

up

of

their

The

auto

Steel

produce

appliance industries will stimulate production

steel

as

consumed

was

a

in

only 85%

•

Incor¬

American

Iron

and

Steel

Institute

tons

that

ingot

and

steel

for

castings,

as

a

compared

week

Only
Lower in

The
.

For the like

2,033,000

week

a

tons.

A

month ago the rate
year

placed at 2,389,000 tons

operating

rate

is

or

not

on

an

annual

was

raw

wholesale

concentrated

.

:

.

.

price

were

wheat,

in

the Pacific

<

;

.

corn, rye,

^oftee, cottonseed oil,. cocoa,
indek
Represents the sum-total of

Further Sharp

oats, hams,

bellies,

pro¬

th^eneral

The

genial

last week.

use and its chief function
trend of food prices at the wholesale level.

with

commodity price level moved somewhat

T^ef' daily wholesale commodity price index, compile®
Bradstreet, Inc., stood at 293.00 on Aug. 18, compared

293.66

^Mveek

butter and

a

Price decreases

•

•

f$j§£orn

nouncement
pose

in

a

of

moderatb^rice

The percentage figures for 1956 are
capacity of 128,363,090 tons as of Jan. 1, 1956.

futures

rose

during the week.

An¬

th&t the Commodity Credit Corporation would di
bushels of its corn before next June 30 result

anticipated.

Trade climbed

An

all grain prices

396,000^)00

Oct. 1 is
of

,

earlier.

year ago.

cotton.

_

.

This was below the 296.91 of the
on livestock, rubber,
eqiqba offset increases in most grains, flour, lard an

comparable date

the year-ago

capacity

.

and hogs. •
the price per pound of
eggs, steers

foodsfups and meats in general

Except

97.0%.
because

was

AVholesal|| Commodity Price Index Edged Slightly
|gLower the Past Week

ago.

79.4% and

.

with

the actual weekly production

comparable

31

is

higher than capacity in 1956.
based

ago

increase

failed

More concerns

wholesale trade.

i|he 22-month peak of $6.39 recorded two weeks
Howejpr, it is still 3.3% above the year-ago figure of $6.09.
floi^J;|nd lambs were quoted higher during the week. ;

is to show

based

duction

groups save

lard, sugar,

the

The industry's ingot production rate for the weeks
in 1957 is
on
annual capacity of 133,459,150 tons as of Jan.
1, 1957.

.

in the pre¬

from

by Dun &

82.1% of capacity, and 2,101,000 tons (revised)

The

joined

of

1.6%

are

announced

Small casualties, under $5,000,

sharp decline last week put the Dun & Bradstreet
-wholesale foodjprice index at its lowest level in six weeks. Down
7 cents in the vfreek, the index for Aug. 20 registered $6.29, a drop
of

"Steel's" arithmetical composite on base
prices of finished steel
remained at $146.19 a net ton, where it has been since the week
ended July 17.

was

in all

*'?,,■<

ago.

year

previous.

refraining from
placing large tonnage orders and are noncommittal on buying plans.
Nonferrous metalsmen are hopeful that their
industry may be
pulling out of its slump. Lead, zinc and copper sales have improved
recently, but they point out that overproduction, foreign imports
and spotty sales still may keep the domestic market at
low levels.

The

to ;

Decline the Past AVeek

of capacity to make the

Mills

up

numerous

A further

year's total equal to the record of 117,000,000 ingot tons set in 1955.
Running counter to the possibilities of an upturn in steel
production are scrap prices. In the week ended Aug. 21, "Steel's"
price composite on steelmaking scrap was $53.50 a gross ton, a 33c
decline from that of the preceding week.

more

excels of $100,000: as compared with 20

in

of the year need average

edged

or more

considerably

were

Wholesale Food Price Index. Registered

July would require
Steel production averaged

steel

.

when 174 occurred.

Most of the week's

been

much

and

States, where-(failures rose to 72 from 55 and in the Middle Atlantic
States, up to 86 from 71. Three slightly heavier tolls were reported
"by the New England, East and West Central States. On the other ;
hand, fewer businesses failed during -the week in four regions,
including the^East North Central States with a dip to 25 from-1
27, and the South Atlantic States, off to 17 from 19. A year-to-year
rise prevailed in seven of the nine major regions and only the East v
'North Central and Mountain States had lighter casualties than >

industries, such as stampings and castings, both of
running slower than they were a year ago.
consumption is still exceeding steel production.
To

as

year ago

than last-year

woes.

are

and

week

last

127 from 121 and construction, to 37 from 31.

of many allied

have

1

•

Because of an appliance
demand pickup and the start of
production of 1958 models, Westinghouse Electric Corp. will recall
500 employees to its Mansfield, Ohio
plant by Sept. 9. Early this
year, about 1,000 employees were laid off there.

which

260 in the

rebounded to
.

ceding-week,:.' ~
' i
All industry and trade groups had higher failures during the ;
week, except wholesaling where the toll dipped to 18 from 20.
Market increases lifted manufacturing, casualties to 54 from 39 and
commercial service to 24...from 11, while retailing rose mildly to

-

The inventory pipeline is running dry
stimulating sales efforts. Officials are backing
their confidence with significant orders for September steel.
models

a

liabilities in

order for early

this trade

new

198

from

'than

Not

worst

22, from

Aug.

•

.7

expects automotive orders to push up the steel operating
With uninterrupted production and a
greater capacity, he foresees enough cold-rolled sheets for every¬

the

,

Sharply Upward in Latest Week

industrial-failures

2% below the prewar level of! 264 in 1939.
Failures involving liabilities of $5,000

rate by at least five points.

and

,

222 "in the preceding week, Dun & •
.Bradstreet, Inc., reports. While the toll exceeded considerably the j
215 in the similar week ..of 1956 and the 180 in 1955, it remained
ended

week

sheets

one,

5,408 cars,

Commercial and

delivery 7
major producer of cold-rolled carbon

A

cars.

,

,

output advanced above that of the previous
while truck output advanced by 1,968 vehicles

car

climbed to 42: from 24 in,the previous week, but were about even
•with 41 of this size in 1556.
Sixteen businesses succumbed with

2,099,000 net tons, marking the highest rate since
.

a year ago.

during the week. In the corresponding week last year 69,676 cars
and 18,644 trucks were assembled.; ;
•
!
In Canada, 5,700 cars were built last week as compared with
7,268 in the preceding week and' 96 cars in the like period a year
ago, and 1,400 trucks as against .1,392 units in the prior week and
369 units in the similar period of 1956.
i

orderly

of June.

18,644

Business Failures Turned

for cold-rolled,

now

reported there were 21,969 trucks made ;
This compared with 20,001 in the previous :

,

-

This Week Stepped Up to Yield
the

,

•

>

"Last week's

The total dollar volume of contracts for

advising their customers to place orders

are

man¬

York.

Morton M. Allen has also

the firm's

2nd

department

Co.,

week and

in earthwork

.

123,006 units and compared

totaled

117,598. (revised)

in the United States.

83.3% of Ingot Capacity

with

Northeast

In the past he was

the

Amott,

porated

associated

96

increases

;

2,132,000

Fla.—Stephen J. San¬

&

year ago.

operating rate of steel companies, having 96.1% of the
steelmaking
capacity for the entire industry will be an average of 83.3% of
capacity for the week beginning Aug. 26, 1957, equivalent to

(Special to The Financial Chronicle)

ford

a

corresponding 1956 period, according to the
Record."

Welty's Restaurant, 135 South La
Salle Street.

MIAMI,

20% less than

waterways awards.

rest

hosts at the eighth annual infor¬
mal
breakfast or brunch to be

attending

were

.

Last week the agency

>

ingot rate of 89% of capacity.
July. Consumers are still drawing substantially upon
inventories, "Steel" points out.
Despite the decline in steel production this summer, the
output in the first eight months will be large enough so that the

Company, Incor¬
porated, and Jos. Condon, McDougal and Condon, Inc., will be

output

car

in the previous week. The past week's
production total of cars and trucks amounted to 144,975 units,
or a gain of 7,376 units above that of the preceding week's output,

their

and

week's

Last

with

the first thirty-four weeks of this year was 14% below

78.5%

Pick-Me-Up

week, with

prior

vehicles ahead of the year-ago .pace.

struction contracts from the high level of

a

Offer Bondmen 8th

the

states "Ward's."

annual

bonds, but

otherwise redeemable

are

of

plans

"Ward's" added.

refunding oper¬
cost of money in

any

involving

Reports," advanced 5% ahead
operations placed at 5.7%, or 270,000

according to "Ward's Automotive

"Ward's"

and

Week Rose 5% with the
Ahead of Year Ago Pace

"for the latest week ended Aug. 23, 1957,

Passenger car output

Studebaker-Packard for model

public and private construction, despite

con¬

,

Industry Operating at 5.7%

changeover.

There

•

Car Output Last

U. S. Passenger

also showed another increase

of 1957

1958, if market

10,169 cars, or 1.4% above

corresponding week in 1955.

gramming at the Detroit factories of Chrysler Division after twoweeks of sporadic labor interruptions.

awards

in

the week ended Aug. 17, 1957,
the preceding week; the
Railroads reports.
Loadings for the week ended Aug. 17, 1957, totaled 750.640
cars
a decrease of
19,004 cars, or 2.5% below the corresponding
1956 week and a decrease of 25,061 cars, or 3.2% lower than the
Loadings of revenue freight for

increased by

fi¬

will

•'

Association of American

Boosting operations tne past week, "Ward's" said, was the
inauguration of 1958 model American Motors car output, return
to five-day schedules at two Mercury plants, plus normal pro¬

$25,000,000 par value of its cumu¬
lative preferred stock in the Fall
or

topped

870,2(51

of

output

car

Motors Corp. 63.9% and "all others" 54.7%.

construction

company

1956

1,117,000,000 kwh. over the week ended

Var Loadings Advanced Slightly in Past Week But
Were 2.5% Under Like 1956 Period

units for United States
plants. The corporation's year-to-date count is 909,700 and finds
Ford Motor Co. operating at 77.8% of the entire 1956 level, General

ap¬

proximates $271,000,000, of which
approximately $70,000,000 has been
or
will be expended' in the last

comparable 1956 week and
Aug. 27, 1955.
;y 7;
.

bidding at 100.27999% for the in¬

entire

week's output declined 386,000,000 kwh., below that
but rose 683,000,000 kwn., or 6.0% above the

of the previous week,

270,000 vehicles, a^ead of

The statistical agency counted an eight-week
and 21,969 truck completions for the ufhst week

according to the Edison
according to the Edison

week eased somewhat from

Output the past
previous period.

Institute.

The past

"Ward's Automotive Reports" stated that the milestone vehicle
on the heels of a bright 5%
rise in weekly production and

n.

-+itrintprf at 12,023,000,000 kwh.,
estimated at 12.023.000,000 kwh.,

was

Electric

came

5.7%,

oower industry
Dower mausuy

the level of the

117,598 and 20,001, respectively, thevfrecp before. (
It added that Chrysler Corporatio|Mnus far in 1957 has

the

1957

Friday of

awarded the bonds at competitive
dicated coupon.

B

r

found the industry operating
the year-ago pace.

electric energy distributed by the electric
lux
mc wv.v.«.
— Tv, Aug.
tor the week enoed baturday ^us-

The amount of
light and
light and

i4,l,lv

The

1957

Ahead of 1956

lite Mate Ot 1 I<t(l6 and indllSIIy
J

Electric & Gas Bonds

Thursday, August 29,

...

Declined for Week But Was 6.(1%
Week

Electric Output

5

.1

BIL-

Offers Public Service

Chronicle

Commercial and Financial

A record high carryover of com tru
Although corn trading on t'e Chicago p°al

decline.

over

that

of

the

previous week, it was

beio

level.

appreciable price rise occurred in wheat ana soybean
trading advanced substantially. Mild increases P1
Total volume of grain futures i

and

vailed in pricfes-of oats and
rye.

Volume 186

Number 5668

Chicago amounted

The Commercial and Financial Chronicle

...

to about 250,000,000 bushels,
slightly

total of the prior week, but somewhat less than that of
Purchases of soybean futures were moderately

over

a

the

Cabot Adviser to

year ago.

higher than those

of both a week earlier and the comparable period last
year.
Wholesalers reported a slight rise in rice futures
prices

.

last

week, as buyers stepped

and

their purchases.

up

Both domestic

Boston Fund

Venezuela continued to rise,, flour purchases from
the Middle East lagged. Flour receipts at New York !
terminals On Friday a week ago amounted to
39,858

from

orders

railroad

,

sacks, with 25,123 for export and 14,735 for domestic use.
Although sugar buying in' domestic, markets slackened
.

the

past week,, prices were .unchanged. Arrivals of raw sugar at all"
United States ports for the year through . Aug. 10th were estimated
at 3,293,946 tons, compared with 3,357,605 in the
comparable year

period: Sugar stocks

ago

.

Aug. 10th

on

were

slightly higher than

the similar date last year.

eh

; A lag in coffee futures trading resulted,in a fractional decline
prices. Although cocoa trading-picked1 up noticeably during the
week, prices fell somewhat. Total Arrivals of cocoa in the United

become

this

year

3,033,730 bags

far amount

so

tb:; 2,465,702 * bags, compared

■

a year ago.

Purchases

steers

of

earlier and prices were

remained

panies in the country, it has been
announced by Henry
T. Vance,
president of the Fund.

being at least. The real test of the long-term Treasury market will
come, however in the next nionth or so, when there will be very
heavy offerings of new issues of corporate, state and municipal
bonds. These securities will provide the competition for Govern¬
ment obligations from the standpoint of income and
yield. And, if
the non-Government bonds go well and at decreasing
yields, then
Treasury issues will be helped.

i Mr. Cabot is a director of the
Merchants National Bank of Bos¬
ton; a director of Arthur D. Little,
Inc.; a trustee of the Suffolk Sav¬
ings Bank for Seamen and others,
Boston;

-

level

of

a

;

..After three successive

1"

'

at

Exchange- exports of cotton

were

the current season totaled'about

120,000 bales, against 163;000 bales
in the similar: period last year. Total - cotton exports in the season
just ended amounted to 7,700,000 bales, the highest total since the
year.

crop

A:

4 %. Above-.,

\

.

a

Fund's

the

Boston

and

and

National

various

of

and

P.
Mer¬

pri¬

a

director

a

in¬

Boston;

Peabody Gardner,

trustee

of

a

corporations, including

American Telephone

& Tele¬

graph Co.

Chicago Analysts to
Hold Golf Outing

-

ing

Sept.

on

19

at the

Medinah

Country Club.

buying of furniture, floor coverings - and automobiles advanced
somewhat, interest in major applumcesrand television sets lagged.
Total retail volume remained at the fcVel of; the
preceding

slightly exceeded that of

a

year ago.

>-

Merrill Lynch Adds
5

Lanham

has

of

staff

estimates varied from the comparable T956 levels
by the

following

Charles H.

added

the

to

Hemphill, Noyes

CHICAGO, 111.

ance
mer

sluggish.

was

Final clear¬

clothing, but volume

Not only is the testimony of Federal Reserve Board Chair¬
before the Senate Finance Committee being given

considerable attention, namely, that interest rates may be leveling
off and could even decline, but also the fact that recent new offer¬

of

corporate

those of

Consumers stepped up their buying of linens
and blankets, but interest in draperies, glassware, china and
lamps
dipped slightly. Although dealers' sales.of new and used passenger
cars

a.

yeap-ago.

CHICAGO,

•

Peter M. Car-

—

high and steady

was

during the week

purchase of fixed income obligations and not a
advantage of the high yields
currently being obtained in these obligations.

that

are

Short-Term Treasury Issues in Demand

\

So far the bulk of the funds which are

being invested in bonds
being put to work in other than Treasury obligations, because
new offerings of non-Government
bonds that are coming into the market. Also, there is not likely to
are

mains

the heavy

on

the

On

new

•;

Best¬

V.-;J.V.v.

-

White, Weld

*;

Wholesale

stocks

of;

airf conditioners: and fans
a

ago;- While

year

in linens and floor coverings advanced
somewhat,
peries slackened. There was a moderate dip in

furniture.

-

;

»'

-

Although

purchases

of

women's

••

-

•

Fall

•-*

;

suits

Schirmer, Atherton Adds
(Special to The Financial Chronicle)

were

PORTLAND,

transactions

■

interest in dra¬
the buying of

Government

•

coats

Ritchie

M.

Atherton

blouses

that

of

clothing
in

lifted

the prior
were

total

week.

were

wholesale

apparel volume slightly over
Re-orders for children's back-to-school

sustained at

a

high level:

able in Treasury

bills.

a

week earlier.

Department store sales

on a

country-wide basis

as

taken from

being bought by

are

those

*

Conflicting Views
is

■'

*

considerable

Rate Trend

on

the

\

v
.

difference

of

I

ji

opinion

i •

tyjr.

,

the

over

prime bank rate and the discount rate.

'

recent

Certain

market specialists contend that the last upward revision in

of the unsettled economic conditions.
the end of the year there could
bank rate

and

the Central Bank

They point out that before
be reductions in both the prime
rate.

As

against this, there are
sizable
fall, and will continue to be strong for some time to come, thus
justifying the uptrend in the prime bank rate and all other loaning
*

Uniformity

George
Schirmer,
634
Congress
—

with

Co.,

increased

the

Searls

O.

ble

Mills

have

staff of H.

Colo.

—

and

B.

Thomas

the

to

Carroll & Co., Equita¬

Building.

Mr. Levy

rate

to

3V2%.

These

It

was

were t%e only
3xk% for Central

evident that the Federal Reserve Banks

of New York and Cleveland had

differences of opinion

with
upping the Central Bank
rate, and it is indicated these differences did definitely come from
the appraisal of basic economic conditions. The hold-out period
at 3% for these two banks was evidently a protest, but a ZVz%
the other

reserve

discount rate is
Reserve

banks

now

as

some

to the need for

in force in

System, which

all of the Central
means

that

Banks

there is

the

in

again

once

Private pension funds, according to reports, continue to invest

Levy,

Jack

added

been

discount

other Central Banks which had not gone up to

(Special to The Financial Chronicle)

DENVER,

Discount Rate

complete uniformity and confirmation of the tight money policy
which has been kept in effect by the Federal Reserve Board.

With Carroll Co.
<

on

Last week the Federal Reserve Banks of New York and Cleve¬

land

Federal

Floyd

Over-all textile activity lagged last week, despite a slight rise
bookings in industrial fabrics and man-made fibers. Food buying

equalled that of

&

Maine

is

Street.

sluggish, increased orders for fashion accessories, better dresses
and

securities

interested in somewhat longer maturities than are obtain¬

are

-

and

-

being ppt temporarily, at least, into the most liquid Govern¬
issues. Likewise, there are indications that selected inter*

Bank borrowings.

appliances*reported a slight rise in orders
dishwashers, laundry equipment and lighting fixtures
past week, offsetting declines in television sets and air con¬

ditioners.

as

hand, Treasury securities of the short-term
variety continue to have a large demand, with reports that money
that would ordinarily be going into other investment channels is

rates.

Wholesalers of major

noticeably higher than those of

side,

other

those who believe that the demand for- loans will be very

CHICAGO, 111. — Alexander W.
Cook, Jr. is now with White, Weld
& Co., 231 South La Salle Street.
He was formerly with Weeden &
Co.
J

for automatic
the

long-term Treasury bonds while
municipal bonds re¬
will be the case for the time being.

issues of corporate and

these rates will turn out to be ill-timed and will not hold because

(Special to The Financial Chronicle)

fresh produce, eggs, frozen juice concentrates and ice
cream.;- Volume in fresh meat and poultry fell below that of the

*

very

available for the

increase in

—
Michael D.
Miller, Spink &
South La
Salle

231

Now With

were

prior week./

given

few institutional buyers are taking

money

111.

Street.

improved, purchases.were slightly less than in the similar 1956
Inventories of new* models continued to exceed those of
buying

been

have

t

with

Inc.,

Co.,

week.

Food

bonds

this

last year.

sellers

is

Marcus
,

municipal

and

favorable receptions is adding encouragement to those that operate
in the money market. It is evident that more money is becoming

that

With Miller, Spink

stores reported substantial, gains in purchases of
goods and bedding boosting total, furniture sales slightly over

,

Martin

man

mediate-term

(Special to The Financial Chronicle)

"Furniture

v,

case

■

Credit Outlook

tions of the powers that be will be lessened sometime in the near

future.

There

again below expectations,

was

"

on

Salle Street.

sales helped reduce retail stqeks of, men's and women's Sum¬
merchandise.
There was' a' ;slit,ht "rise in sales of children's

back-to-school

"

.

market, although still very much on the tight side,
better psychological attitude because some of the prevailing
thinking is that the credit limiting and interest rate raising opera¬

•

appreciably; the call for suits and coats

combination of deal¬

a

a

avette
has
joined the staff of
Hemphill, Noyes & Co., 231 South

La

%

The money

has

ment

(Special to The Financial Chronicle)

While volume in women's Fall dresses and sportswear climbed

'

Optimism

now

Joins

-

percentages: Middle Atlantic +3 toV-^fpEast South Central +2 to
-|-6; South Atlantic and Mountain -fT to -f 5; West North Central
and West South Qentral 0 to
+4; E^t North Central —1 to ?j-3;
New England —3 to +1 and Pacific Coast —4 to 0%.

—

been

Lynch, Pierce,
Beane, 101
Twelfth

&

'

the calendar for

Merrill

; The total- dollar volume of retail trade in the
period ended on
Fenner
Wednesday of the last week was unchanged to 4% higher than a :
Street;
year.ago, according to estimates by Du*k& Bradstreet, Inc. Regional <

time

be too much interest generated in

(Special to The Financial Chronicle)

COLUMBUS, Ga.

week

"-A--

for tne

the return is much better in the

last

and

sizable.

hold their second annual golf out¬

r

side

mark-up in quotations, an absence of selling, and scattered
institutional buying. Volume, according to advices, has not been

CHICAGO, 111.—The Investment
Analysts Society of Chicago will

Retailers reported a noticeable' risAin sales of men's
apparel
week, with principal gains iiVFall siiits and topcoats. Volume
in women's clothing was sustained at a
high level. While consumer

constructive

tions of Government bonds is attributed to

ings

-

'

to the

On the other hand, if the non-Government new issue market
heavy and yields go higher, long-term Treasuries will have to
decline in price to meet this competition. The recent rise in quota¬

a

Richard

Bank

though the attitude of operators in

as

is

National

president of the

number of
the

Frederick

are

corporations;

G.

vate

Unchanged to
- Year-Ago
- ,'
,

of

of

chants

Trade Volume Last Week Was
.,..

and

seems

securities has turned

ers'

the

of

First

-

•-

businesses

members

Chapman,

estimated

83,000 bales last week, compared with 115,000 bales a year ago,
decline Th7almost a; year. Exports for

other

trustee

and

for the-'first- year-to-year

1932-33

Other

Bank

•Howevdr, trading was
ing favorable weather conditions^;in'growing areas. According to
the New York Cotton

of

or

charitable organizations.

dustrial,

week

c°tton prices rose
unchanged reflect¬

somewhat the past week.

director

trustee

a

director

"

weeks' oF decline;

trustee of Northeast¬

a

University; and

Advisory
Board
Ayer, a private

steady.- A slight rise in lard futures prices

occurred during the w?eek.
>-:•>

at." the

Advisory

these

.

pork fell noticeably. Hog receipts in Chicago slightly exceeded
those of both the prior week and the similar 1956
period. The
salable supply of cattle was the highest for any week in two

By JOHN T. CHIPPENDALE, JR.
The Government bond market has been
making a much better

showing because it

ern

with'

member of the

a

Governments

on

Board of Boston Fund, one of the
mutual investment com¬

of

Warehouse stoeks. of cocoa in New York
rose moderately to 355,268 bags the week before.
Hog trading was sluggish last week, and prices on hogs and

months.

Reporter

largest

in

States

Our

BOSTON, Mass. — Louis W.
Cabot, vice president and treas¬
urer of
Godfrey L. Cabot, Inc., has

export trade expanded.' There was a slight improvement in flour
prices and trading was close to that of the preceding week. While
Europe and,

31

(923)

for¬

was

merly with Lackner & Co.

large
a

sums

of money in Treasury bills, with indications that quite
be put to work in equities when the

sizable amount of it will

stock market is attractive to them. Public pension funds reportedly
the

are

main buyers

of long-term Government bonds, but these

purchases have not been too large and have
periods of price weakness.

to

confined

been

the

Feaeral Reserve Board's index for the week ended Aug.
17,
i957, increased 4% above the like period last year.. In the pre¬
ceding week, Aug. 10, 1957, a gain of 3% was reported. For the
tour weeks ended Aug. 17,
1957, an increase of 3% was recorded.
For the period Jan. 1, 1S57 to
Aug. 17, 1957, an increase of 2%
was

registered above that of 1956.
As

in

a

New

Period

a

result of cool weather the past week, retail sales volume

York
year

City
ago,

6

to

8% higher than the

corresponding
estimates placed by store executives show.
was

According to the Federal Reserve Board's index, department
store sales in New York
City for the weekly period ended Aug. 17,

J957,

increased 8% above that of the like period of last year. In
tlie
preceding week, Aug. 10, 1957, a like increase was reported.
For the four weeks
ending Aug. 17, 1957, an increase of 7% was
Registered. For the period of Jan. 1, 1957 to Aug. 17, .1957, the
index recorded a rise of 4% above that of the
corresponding period
of

1956.




With Columbia Sees

Jerry Thomas Adds

DENVER, Colo.—Joe Davis has
become

connected with

Securities

Columbia

Co., Inc.; of Wyoming,

First National Bank Building. He
was

formerly with Lackner & Co.

Carr Adds to Staff

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

PALM BEACH,

Fla.—Robert M.

Hope, Robert W. LeRoy, Allan H.
Seeley and Edward D. Wade are
now
with Jerry Thomas & Co.,

Inc., 238 Royal Palm Way.

DETROIT, Mich.
Allen

is

with

Penobscot

&

Carr

Building,

the Detroit

t

Donald V.

—

Company,

members

of

Stock Exchange.

With Mountain States

With Straus Blosser

Four With Sills Co.

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

DENVER,

Colo.

—

Thomas W.

MILWAUKEE, Wis.—Donald T.
has joined the staff of

Bailey, Jr., Michael DiSalle, Ray
D. Fenimore, William M. Mitchell,

Fossum

and W. Greg

with

was

Fla.—Norman

Bander,

North

Cor¬

MIAMI,

Mountain

Smith

States

are now

Securities

poration, Denver Club Building.

Straus, Blosser & McDowell, 710
Water Street. Mr. Fossum

the Second
Bank of Beloit, Wis.

formerly

National

with

Alfred B. Elworth, Paul
and

Robert

added

to

Company,

the

have

Tanney
staff

O. Griffin

of

Ingraham

Sills

been
and

Building.

Thp

#3

Commercial and Financial Chronicle... Thursday, August

29

(521): '

"

Chronicle)'. „V f

(Special to Tug.Financial
*

DAYTONA BEACH,

'

:
- _

to the

been added
staff of T. Nelson O'Rourke,

inc.,

533

Vnembers

By ROBERT R. RICH

of Total

Financial Chronicle)

Calif.

SAN JOSE,

securities to

sales of outstanding

Frank L.

—

publicly held by U. S.
Canada's current net
non-resident investors, The Com¬

Canadian portfolio investment companies
shareholders now account for nearly half of

With Dean Witter

mittee of Canadian Investment

Thompson has become connected

Companies reported.

With Dean Witter & Co., 34 North

Canada of about

—

,

;

sales of all Canadian
net capital inflow to

During the first six months of 1957, net
securities to non-residents produced a total

First Street.

estimated.
Canadian ^vestment

$90,000,000, the Committee

>

During the same period, net sales of new

Committee stated.

INVESTMENT

;.

w

a

portfolio investment companies add to
tinuously re-investing in Canada's economy their
Canadian

emphasized.'

mittee

FREE INFORMATION
FOLDER AND PROSPECTUS
YOUR INVESTMENT DEALER

TO
OR

NATIONAL SECURITIES &
RESEARCH CORPORATION
Established 1930

New York 5, N. Y.

120 Broadway,

??"

"

,

>??«

Incorporated

investing
■'

for-

income?
r

,

A

Established 1925
• , _
mutifal fond .invested

in

a

securities
possible

list of

selected

for-

GROWTH of

CAPITAL and

ahead.

INCOME in the years

•

v

«.

Stock

ahead ?there »'will- continue

months

the

.

muluol

f„„d

5k of

—

Principal

of its

six

the-first

of

$15.25

per

share

and

Balanced

your

Tiif. Parker Corporation

Berkeley Street*

Boston, Mass.,'','

were

common

'

common

;
-

of the
our

The

lows:

of

the:

MIAMI BEACH; Fla.—James E.

assets .-formerly

and /. Government

remainder

-goods

many

com¬

'?viri

30.82%
/

common

account,

(special to The financial curonicr.f)

awareness

of

the

Gross

sales

%

16.87

Producers of

(Special to The Financiat. Giironicle)

9.70

Issues added in the nine months
ondoa
Ti.lv
h
ended July 31, 'tQWwci-c
1957 .wcie.
, b
;
AiKansas Louisiana Gas; ;Bor-

den; Cleveland Electric:;Fireffian's

Miller has become affiliated with
Merrill Lynch, Pierce^ Fenner &
Beane, Lincoln Road and Washi„H-nrt'-Avennriu'

plo.vecs Insurance;

Grand LTriion:

year

on

a

900—a

price basis

greater than has been obtainable
for

of $687,570

A. ii. Laurence lirancn

1

Alfred

D.

Utilities; Motorola; Northern Illi-

opened

a

WEST

of" the

been added to the backlog portion

same

month

July,

figures
sales

These

1956.

July,

1957,

•' ?

1956.

:

year

at 202

the diGerald F. Laughlin.

Now May & Keller

p0RTLAND/0rc.

.

—

May &

been formed as sucto the investment business

Keller, has
cessor

Earle

0p

C

Mav.

811

Southwest

cth Avenue

Avenuc"
Corn.

^N°w oanders InV. k,orp.

ALBUQUERQI3E. N.

The linn name of Shelton banu

inlict
Zref oiitZS ™!

Investments, 205 Gold Avenue,

ers

assets

a

Southwest, has been

chaiiRed to

Sallders Investment

Corporatio .

$199,049

taining

new

111

totaled

40%

highs.

Net

oh-

assets

increase of 21 %. Number of shares

net

outstanding increased to 5,268,746

ahead

month

shareholders,

$33,463,105 compared with
$27,703,921 as of July 31, 1956, an

redemption

corresponding

fiscal

office

branch

further substantial increase
of

Fund's

the

for
iq-v7

$210,357

totaling

pushed

for

Fund,

Ti.lv

number

Redemptions

tractive

have

in the

last month compare with
in

investments

Puritan

Laurence

rection of

Gas; Potomac Electric, and
Bag-Camp Paper. "

ended

gross sales

over

BEACH, Fla.& Co. has

PALM

South Olive Street under

Union

ago.

many years.
To take advan¬
tage of existing opportunities, cer¬
tain changes have been made in
the bond, account and several at¬

bond

gain

from 4,100,804.

holders

of

'

Number of share¬

increased

11,060.

-

income

for

cents

their

possibilities for
gain in value over the

to

r

just ended,-;

year

distributions

share,

a

ago and 35 cents

totaled

new

a

pared with 38 cents

years.

14,000 from

"

During fiscal

vesting to' "growth"

a

a

high

share,

POUNDEDW

39

com¬
a

year

111
^

share two years

-

Send for.

a

also

booklet-pro-'
spectus by mailing this

?

•

t

'

•

-

advertisement.'?

Established 1894

Prospectus

\

ONE WALL

objectives of this Fund
long-term capital, and
growth for its shareholders.

possible

income

ST., NEW YORK 5

upon

request

a

the fund

distribution

of

six

Name.

ized

during the fiscal




—

Chicago

> —

•

Atlanta' "

(Special toTHE Financial Chronicle^

,

M.

Brady

with
Angeles

•

qaarterly

year.

Ilea share

With Daniel F. Rice Co.

:

Lord, Abbett & Co.
New York

conseeative

_

FT., LAUDERDALE, Fla.—John

Address.

:

share payable Sept. 3, 1957 :

from long-term capital gains real¬

Investment
ore

BULLOCK

Aug.;.I, 1557,

declared

cents

—

A Common Stock Investment Fund

-

CALVIN

On

ago.

free copy

of the

has

Daniel

become

F.

Rice

affiliated

&

Co., 937
Avenue..-, H^ was
formerly with Bache & Co,
-1 ' •

Northeast

■

i

•

;

S'.

'

oMM/,k

*

Society; Hammermill Paper; Hartford
Fire
Insurance; Kentucky

July, 1957 totaled $865,-

26%

n

A

Great American Insurance; Grolier

Star

'

:

enucV

Insurant; t56v6rnment Em-

Fund

.

wiffi

ever-pres¬

shares in

Joins Merrill

V

capital goods

durable goods-_r

or

Fund

Delaware

of

71j&

& Co., 414

Street.

Producers of fuel and raw

Delaware Sales Up

reflects

11

a

Adds

MIAMI.BEACH, Fla.—Samuel
jj. Rapkin has been added to the
staff of H.' Hentz

30.27

child

stock portion

moreover,

^

:

fol-

as

,

•

'

in

was

stocks diveisified
.

connected j

arid Come

317 71st .Street; He was
with Bache & Co.

quarter, Pany>

company's

v

Producers of non-durable

Salus, prominent Philadelphia at¬
torney, purchased 1Q0 shares of
Atomic Fund for his first grand¬

which provides income somewhat

mutual fund In¬

trading department,

With Daniel F. Rice

.

......

Service industries

Kohn's proud grandfather, Arthur

become available

selected

cash

common

recently
enacted
Pennsylvania
legislation allowing custodians to
hold
stock
for
minors,
infant

threat of a continuing infla¬
tionary trend.
"During recent months, good
quality investment bonds have

stocks

in

bonds.

Kohn, at the age
of 55 minutes, recently bepame the

ent

a

stocks 65.09%.

•

(Special to The Financial Chronicle)

■

develop and have

end

12.34% ; of ' the
was

? \
that of the

shows

report

the

At

Andrew Stuart

stock hold¬

reduced. Sales of

tential. The

is

giving weight for
that
currently in

Guarant?

investment dealer.

200

ianci

nois
Gas; Pet
Milk; Rayonier;
through Herman Liberman,
mon
stocks in the three months Manager of the Mutual Funds De¬ Signode Steel Strapping; Socony
Mobil Oil, and U. S. Fidelity &
exceeded
purchases
by
nearly partment of Newburger & Co. in
eight million dollars.
Philadelphia. The Kohn baby was
•
Those eliminated were:
"We
should
emphasize, how¬ born at 11:05 a.m. on Aug. 19,
ever, that the Fund continues to 1957 at Abingdon Memorial Hos¬
Air Reduction;
Allis-Chalmers;
maintain a substantial portion of pital and the shares were pur¬
Baltimore Gas; Brooklyn Union
the investment account in care¬ chased for him at noon on the
Gas; Burroughs; Central Hudson
fully selected common stocks with same day.
Gas;
Cluett
Pea body;
Idaho
interesting long-term growth, po¬
Power; Indianapolis Power; Lone

each

on

to industry
to company.

'materials

I\md, observes that:

of the Fund's

fjtnd is available from

(Special to the financial chronicle)

,

trends

..

-Youngest Shareholder

on

8.897,447 to a new - quarter-ehd
high of 9,251,501. ' ?" %
In
his letter
to
shareholders,
Henry T. Vance, President of the

ings

prospectus

;

selecting our portfolio hold- Hartman has' become
,ings accordingly."
•;
5
with Daniel F. Rice

fiscal year

current

"During the past quarter

A

Representing Fulton, Reid

the possibility

economic

evidence would

..

who,i fi„,

been

time to

some

Jan.
31, when net; assets were youngest M Atomic,, Development
$135,440,283. During the half-year, Mutual Fund, Inc. shareholder on
shares outstanding increased from record.
Taking advantage of the

Income Fund

company

have

the

industry

from

and
We

in

end

the figure of

.Incorporated

income?

from

ably

the largest Fund's.^ investments on July .31,
and
notes
represented
th^r country, re¬ bonds
ports total net assets of $149,404,- 19.47%, 'preferred stocks 15.44%
at

be

to

?.

^

-d

divergence
in the ' price
FT. LAUDERDALE, Fla.—Evechanges of individual securities. lyn' D. Bartsch ;is fepfescntine
The, impact of such things as risFulton,'Reid & Co. of Cleveland
.ingr.interest rates and shifts in Miss Bartsch has been with the
defense policies varies consider- firm for some time in the Cleve-

Boston Fund, one of

July, 31, 1957,; amounting to
$16.15 per' share, compared with

current

The

-

on

(investing'
foe

opportunities."

ment

Holdings

mutual .funds

338

1

wide

(approximately: $4,500,000)
ap¬
pearing, in the account represent
funds awaiting what we think will
be
additional
attractive invest¬

!>

..

Cuts Common

Investors

future

i

»

•>

^

believe that in the months

"Wc

The short-term notes

of the Fund.

m

about 20% in major oil and
8'a« holdings.
President; Floyd B. Odium said
th.e company's uranium subsidia^es have progressed satisfactorily and mining operations have
i^crea;sed to a current rate of
abouf 2o,000 tons of. ore per
h*°mh. This rate is expected to
increase substantially in the coming months, he added. ;

been

Boston Fund
V..

shareholders,

to

letter

individual stocks.

•many

"r~rT?

-

v.

greatly, there were subchanges in the prices of

stantiai

to Canadian ,
and other international economic development, the Canadian port- ..
folio investment companies, by policy, remain minority share¬
holders," the Committee stated. "They employ their shareholders.
capital, not to exercise domination or control of corporations ill.
which they invest, but to seek securities investments promising
long-term benefits in line with their shareholders' objectives.
Because the registered portfolio investment companies con¬
sistently occupy this minority stockholder position in Canada and
abroad, the Committee pointed out, they have been increasingly
welcomed as participants in the international economy, particularly
in nations where exercise of control through direct U. S. capital
investment has aroused sensitivity and misunderstanding.

WRITE FOR

represents an increase

to and

equivalent

is

1956,

his

change

substantial new capital resources

''While adding

£

?9-50«

about

or «

Harry I. Prankard 2nd, President,
points out that ; in the period
covered, although the genera 1
level of the stock market did not

the
this total by con¬
retained dividend
and interest income, as well as capital and appreciation derived
from the sales of Canadian securities in their portfolios, the Com--'
vestments at

cents,

29

>?;/:/-?

year.
In

"•?
in¬

??'?

.;■,

y.

,

the inrti,
oulstand
June

at

ycaar?caI-|clvmpared with

■

-

-:.

$6.24, as compared with $5.95 on
Oct. 31, 1956, end of the last fiscal

employing these proceeds in new Canadian
current annual rate of more than $82,000,000,

In addition to

FUND

of

..

December

shares to U. S. investors totaled approximately $46,000,000.
Nearly 90% of total proceeds from such sales, or approximately
$41,000,000, was invested in outstanding Canadian securities, the
company

A MUTUAL

Changes

uianges

stock

t asset value of 8.6% in the
5%, in the per share value of its 1^-month period before deducting
capital stock for the first three JhP «0
? p,^r share Paid iu
quarters of its current fiscal year.
dividends, the company saicl
The company's latest quarterly re- m a mid-year report to stockport shows n<*t assets on Jidv 31, ^0~~rs.
1957 of $374,272,904, equivalent to
Total assets at mid-year stand
$5.98 a
share.
This per-share at more than $125 million, a new
value, together with the 26 cent nigli, the firm said. About 40%
capital gain distribution paid in was
urahium holdings
increase

Canada Funds' Sales Are Half

(Special to The

-

•

Affiliated Fund, Inc. reports an

Stock

Exchange.

-:C°rP-;,reported
*
?atod asset value
i"g common

V''

nee
Price

Boulevard,

Midwest

the

of

J

.

™"11S Oil
U8WU

Fla.—Hol-

tisv ©. Parker, Jr. has

Seabreeze

Atlas Corp.; Reports

Affiliated Fund

With T. Nelson O'Rourke

1957

s
■

J

.

v

j

,

19th

«....

V 4

,1. i.

,

..

;•(

,

ment

dividend

from net

income,

tember 30,

record

invest¬

payable Sep

"

1957 to

stock ot
19

September 6,
WAITER L

MORGAN

President

'

I)

>■:!

:

Number 5668

186

Volume

The Commercial and Financial

...

Chronicle

(925)

Continued from page 16

Are We Too
into prison for saying
pleased. Many of those
were
willing to fight for

thrown

what they
who

seized' and thrown
prison and at that time there

freedom were
in

fear in the hearts of the peo-

was

ill

pie of America, but today no such
fear exists for those who believe
in the American way of life. And
no one is unjustly seized.
All are
accorded a fair trial. The second

free nations of the world—Korea.' used in
every war time period as
This country for
many years was a
recruiting song and a battle
a slave nation to
Japan and, after song.
Sometimes, as we do with
World War II, obtained its free¬ other
patriotic songs, we sing it
dom although there was a
grasp¬ unthinkingly.
But, the song, em¬
ing of a large portion of it by anating from the heart of
a poet
war he
was
called upon by the Soviet
Russian influence.
After and a
minister, is really a poem, a
Government to assist in training the
cessation of hostilities there
prayer, and. a song.
those who were Responsible for
was an election of Southern Korea
As you have
probably guessed
the preparation of food for our
where the people were truly free.
by now, this man's' name was
Armed Forces. At a great
personal I believe I am correct in stating Samuel Francis
Smith, and the
sacrifice he rendered great serv¬ that 98
% of those entitled to vote
ice to this country which he had went to the
polls and cast their
adopted as- his - own.
He
was
ballots to select the leaders of
the

highest

within

award

United

the

States

their nation.

honorary
of

power

the

I believe that if

went back in American

we

is that of education.

We all know

Here

in

was

a

Congress

man

that

to

humble job but, through per¬

a

he

"If I had

one

able

to

their

ballot.

to

how his education was

gained by
familiarly refer to as
"the hard way." We know of his
efforts to, learn at night after a
hard day's work and his educating
himself in the law profession. In
those days
there were not the
great public school systems that
we
have today,
or
the college
privileges that are -available to
everyone -who has the ability to
learn and is willing to sacrifice the
we

was

is given to all American citizens.
The second person that I would

like: to

use

as

illustration

an

is

our
great President Dwight D.
Eisenhower.
He was one of a

family of boys who
humble

were

circumstances

of

born in

appreciation

of

we

the

of

of

a

wage

the

has

Mathematics,.Engineer¬

have}'; expressed

a

that

concern

American youth today is looking
at prices, instead of values.. It is
.

feeling that Americans should
give more thought to this privi¬
lege of obtaining an education and

my

appreciate it to

greater' degree.

a

in America is

one

that I have

re¬

It is that of

atomic

war.

'.

'

'

scientific

necessary

farmer,

a

through

the

society.

Each

over

and

so ' on
classes
of

various
person

ity and is willing to

was

born to

pay

the price

in the form of sacrifice
dp order
to achieve his
goal. Lwoudd like

toj mention

two .persons as an ex¬

ample of what I

mean.

First,

The

because there would be

ing of atomic

no

Baruch.
Good
of such
to

Government.

by itlie

both

persecuted

Russians and the Turks. He had
little education, but he had great
he

and

had

willingness
effort

tions.

He

Washer in

from

chefs in
owns

to

a

pmbition and
sacrifice

achieve

to

started

out

his
as

time
ambi¬

a

dish-

small restaurant and,

of

;

-v

/

?;.*•..

We

should

have

brought to

our

attitude

attention.

final

point

that

I

would

enough if it
a

can be realized, but the essence
Utopia would be the willingness of peoples

permit it to, exist—rand- such

that

we,

choice
of

as

in

our

Americans,

who is to

be

government.

have
the

a

head

American

elections, whether it be for those
who

the

run

affairs

of

our

local

the

a

authority?5

the

methods used, in other
tries in the designating of

who

are

to be the rulers.

coun¬

those

Yes, in

;; v7

As he read and

one

grades. Later
that it took him

he related
only about a half hour to write
the song.
He did not- think well
so

this

several

own

rulers.

-

United States stands

he put

ing free elections.

was

And how do

appreciate this privilege?

we

In the last presidential election,
when we had the largest turnout
of

voters

in

the

history of our
country, the sad fact is that only

he

tually go tp the polls on election

of

the

leading

taurants in California.

res¬

During the




read

had written.

63% of those entitled to vote took

Today

to

almost alone in the matter of hav¬

the trouble to register and to ac¬

country.

friend

clay.

As

a

contrast to this, I would

like to refer to

one

of the newest

Oliver

Holmes

it, away.. Sev¬

the

song

irhat

His classmate's

he

name

Wendell

was so

Holmes, and
impressed with the

song that he told his friend that it

would make him immortal and he

prevailed upon him to take it to
a publisher
in Boston. The song
was published and has been used
in

our

schools

ever

since.'

>

Form Mutual Sees. Corp.

|

RICHMOND;; Wo.
Mutual Se¬
curities
Corporation, riias
bee*
offices at 402 Weed

formed with

to

in

engage

business.

se¬

a

Officers

ara

Arthur C. Jones, President; RothM. Duke, Executive Vice-

erinel

President; Hugh R. Floyd, Secre¬
tary-Treasurer. All were formerly
with Pioneer Enterprises, Inc. and
Reynyx, Field & Co., Inc.

(Special to The Financial Chronicle)

Opens

ing in

a

^Through films, pamphlets,

securities business fr,om

posters* exhibits iind; lec-

offices at 280 Fern Street. He was

formerly

with

Investing

General

!

jtures, our life-line of cancer j

j

Corp. and Teden* & £o.

education reaches poopje in]

;

business and industry,

-

V-H-

W. H.

C'V;1-

-

Webber Opens

j

TUCKAHOE, N. Y—William H.<
Webber is conducting a securities
business from
rence

Avenue.

office^
He

at

was

85 Law¬

previously

with N. C. E. Shares Distributors..

I )
!

Ernest

A.

Dablgren

Dahlgren,

associated

with

i

«!i

They learn facts about
which

j

mean

'j

the difference between life

j
!

; cancer

could

and death. For information

about

Ernest A.

Association of New York.

has been

CANCER LIFE-LIN

'WASHINGTON TOWNSHIP,
N^j.__Pierre V. Rossini is engag¬

in

song

Street

Main

curities

*

beauty, it has been popular these
120 years. 'While it was written

Because of its. simplicity and its

time, the

.7;-A AAA'*' :-'/,/

Goodbody

Paine, Webber, Jackson &.
Curtis, New York .City, passed
away Aug. 21.
Mr. Dahlgren was
a member of the Security Traders

peace

I .;•'•/

.'."f

for chil¬

songs,

some

he

beginning,

Two With

and grammar school

of it and

;}. i

What is

MIAMI, Fla. — Grover Allison,
dren
which
the
Germans
had Jr.,
and Kenneth, R. . Lindquist
written.
One night in February, have joined the staff of Goodbody
1832, he thought he would write & Co., 14 Northeast First Avenue."
a Song of patriotic character to be
used by children in kindergarten
i ;
P. V. Rossini
on,

71

V

-

community, our state, or our na¬
tion, are distinctly different from

■

"

of thinking.',",.', "V '
*And who would really conttol the international

when

patriotic

m

a

way

translated these old German songs,
he
was
particularly
impressed
with

.v i

problem is how to bring "distrustful, amb i* i •#!
tious, jealous, and imperialistic nations to /such ah '•

respect when the sym¬
American freedom are

lisher in Boston.

of the best known

that humble

Rose to be

test¬

The

more

bols

Baruch

state of mind
would almost render the mechanism needless.

greater respect for the things that
signify America and/.American
little

M.

All atomic energy will be
utilized for peaceful purposes." — Bernard M.

granted that they would not
accepted as commonplace
things. It seems to rae, that, real¬
izing this,
we
should
have
a

countries, there -are free eral months, later, one of his class¬
elections, but a vast majority of mates at Harvard University and
try
the people of the world are denied
lg his own nhtive - country of
lie;, were talking of poetry and
the
privilege of electing their imusic, and our student asked his
Armenia, he and his family had
came to this coun¬
when he was 22 years of age.

and

Bernard

weapons.

*,

Elections

like
to
emphasize
about' these
peculiarly American privileges is

an

Armenian, w&q

the

to

authority for. debombing.
The danger of contamination*
by fall-out is thus eliminated

the dormitories that

Free

Anyone may be exactly what
he wishes to be if he has the abil¬

ability

;/

the

free man, the
free from fear,
a

wor¬
singing patri¬
C. A. Berg Opens
shipping God?£is we individually otic songs in addition to our great
please. In many countries of the national anthem? • Have we the
SPOKANE, Wash.—Clifford A.
world this privilege is not given same respect as my friend Mr. Lee Berg is engaging in a securities
to the individual citizens, For in¬ liad on the campus of Pennsyl¬ business
from
offices
at
3503
stance, in Russia, it is said that the vania State University last year? West Rockwell,. -7
'
Or are we like my associates in
right of worship is given to the

re-

the status in which he had tor exist
for the rest of his life. We know
that this is not so in our country.

bqen^

and

"Then all the world's atom
bombs must be handed

,

a1 farmer

of

son

not guar¬

processes.

*»

The

■m

in the

are

our

'

-

c

I should like

required to
The author¬

more

hiained

me,

and fis¬

individual, but the annals of cur¬
evening who
Gabriel Sees. Opens 5
rent history tell us that this is paid little attention or no atten¬
LONG BEACH, Calif.—Gabriel
of a challenge to worship tion at all of the fact that a pa¬
j /The fourth privilege that we, as at all. This
Securities Corp. is engaging in a
privilege is one that triotic song was being sung upon
Americans, have is that of im¬
securities business from offices at
was
sought by the hardy souls on important occasion.
proving our position in life.
A
139 West Olive Street.
Officers
few years ago at one of the ses¬ who came to this country in the
Lost Our Sense of Values
are
Aaron J. Gabriel, President;
sions of the Summer School we early colonial days to escape re¬
Because we have not personally Theodore Gabriel, Secretary. Mr.
persecution
in
Europe.
had the privilege of listening to ligious
Gabriel was previously with LeProfessor Reede of the Pennsyl¬ Unfortunately, to many of us, the paid the price that was necessary
right to worship as we please to gain these privileges, have we pow Securities Corp.
vania State University staff talk
[about the five years that he had means the right to stay home from lost our sense of values regarding
Since all the things that are really worth¬
spent in Italy as a representative church if we please.
//•- /Roberts Adds
!
of the United States Government. things come to man from God, it while?
(Special to The Financial Chronicle)
is only fitting that we should wor¬
He stressed the point that in Italy
About 120 years ago, a young
DENVER, Colo.—EdwaM J. Ott,
| there were classes, that if someone ship him. It is a great American theological
student
at
Andover Jr. >.has been added to the staff
privilege that we have to do this Theological Seminary was
had been born of a father who was
given of Roberts & Co., First National
I a stone mason, he would never in our own way.
the task of translating some Ger+
Bank Building.
,
•
rise above the class of a stone
man songs into English for a
A.-, f
pub¬
:.

Economic Advancement

same

all

owns

resources

metallurgical

be

ferred to before.

the

responsibility

ity must also have control of

are

an opportu¬
citizen to arise from
circumstances to a posi¬

humble

ben

ing, and Medicine. Such educators

[

granted

the

nity given to

a

been

personal

of the individual that
exists when
the word "my" is used.

And so, here we have among
the many privileges of
being an
American at least six that I feel

else in this world is

expressed ;by the
tion
of
distinction
and
impor¬
leading .educators of our country
This opportunity to im¬
because too many of our youth tance?
| are seeking the easy courses in the prove one's self and to advance
is peculiarly an American
privi¬
secondary schools and colleges.
.\7
They are;passing up the difficult lege.5
The fifth privilege that we have
courses in

;

not,have
of

sense '

privilege.

And this

abundance, it is often abused. For
instance, just recently, much con¬

mason.

would

Country." If h£
Country" thero

"Our

many

the world.

cern

said

interna¬

an

authority which

sionable materials

bank president, another a distin¬ exists in regard to these
other nations of
privileges
privilege, like guished lawyer, another a capable elsewhere in the world that we
should be so thankful that we are
others, is accepted too lightly by businessman, and one the Presi¬
dent of the United States. Where in a country where such
us and, because it-is available in
privileges
in

so

had

Agreements between nations will

the natural

privilege of being
living. They were a God-fearing
the privilege of
family, and each one worked and obtaining an education, the priv¬
time and effort to do so. The edu¬ strived for a goal that he had set ilege to advance one's position in
himself.
These
cational system of this country is for
boys
have life, the privilege to worship as
the finest in the world.
The op¬ achieved a great measure of dis¬ we please, and the privilege to
portunity to obtain an education tinction in their chosen fields. One choose our own rulers. It seems to
lis available to everyone,. This is is a college president, another a me in view of the situation as it
not

pointed out to
Smith that the real
genious in the
writing of the song was tliat-rii
started out "My

wish to be

one

"There must be

vitally important to the in¬
parents dividual. The privilege of being

that found it difficult to make

Holmes

start made toward
permanent peace

a

tional

today's

value

see

world.

advantage of the, opportunity of generation accept, and for which
education and .the
opportunity to we have not had to personally
improve his position in life that fight, we have grown to lose an

what

Wendell

antee it.

But, because this is

privilege which

severance,

story of one of our greatest
Presidents, Abraham Lincoln, and

take

a

the

m

"My Country 'tis of Thee." Olive*

Maybe, Some Day!

history to

give. the period immediately after the
might Revolutionary War, and the adop¬
Americans is the freedom from say had no opportunity at all. He tion of our present Constitution
fear.>.;■/'
7/;; did not know the language of our in 1790, we would find that there
country, he had the meagerest of was a very high percentage, per¬
Educational Opportunities
education, and he had no skills or haps equal to that recently shown
The third privilege that we have training to start with. He started in Korea, of the citizens casting

great privilege that we have as

of the song that he wrote

name

Complacent?

awarded

3d

1

■

•

a

program

in

your

plant call the American
Cancer Society or write
"Cancer"

care

of

your,

local Post Office.

*
^AMERICAN

CANCER SOCIETY,

;

34

The

(926)

Commercial and Financial Chronicle

Thursday, August
29, 1957

...

* INDICATES

Securities

Now

in

ADDITIONS

SINCE

Registration

•

PREVIOUS

ITEMS

REVISED

ISSUE'V

i

Akin

Distributors, Inc.
Aug. 2 (letter of notification) 90,000 shares of class A
common stock,
90,000 shares of class B common stock
and 25,000 shares of preferred stock (all of $1 par value).
Price—Of class A and class B common, $1.50 per share;

Tulsa*. Okla.
Tulsa, Okla.
er,

Life

&

of record

^California Electric Power Co. (9/17) ;
Aug. 23 filed 140,000 shares of cumulative preferred
stock (par $50). Price—To be supplied by amendment.
Proceeds—To reduce short-term bank loans.

Co,. Inc., Chicago, 111.

stock

Cameron

200,000 shares of common stock (par $1).
Proceeds — For expansion, repay¬
ment of loans and for working capital.
Underwriter—
Van Alstyne, Noel & Co., New York.
American

Income

May 24 filed 500,000
Price—At

market.

writer—None.

June

ment Adviser

—

H.

Jackson

investment.
is

President.

Under¬

Feb. 15 filed

50,000,000 shares of common stock (par one
cent). Price—$2 per share. Proceeds — For working
capital and general corporate purposes. Office—Dallas,

Underwriter—Peoples Securities Co., J. D. Grey,
Orleans, John S. Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, axe
Chairman, Vice-Chairman and President, respectively.
New

Washington, D. C.
(letter of notification) $120,000 of 10-year 6%

Pipeline Co., Greenville, S. C. (9/11)
Aug. 16 filed 300,000 shares of common stock
(par $1).
Price—To Joe supplied
by amendment. Proceeds—For
construction of pipe line.
Underwriters—White, Weld &
Co., New York; and Scott, Horner & Co.,
Lynchburg, Va.

warrants for 10 common shares at $15
per share exercis¬
able at any time through June 30, 1959. Price—Of
bonds,
at par. Proceeds — For construction and

Producing Corp.
July 29 (letter of notification) 100,000 shares of

C.

Underwriter—Mackall

non-cumulative
30 cents).

•
Amphenol Electronics Corp. (9/10)
Aug. 21 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
acquisition program, including acquisition of
DanburyKnudsen, Inc. Underwriter—Hornblower & Weeks, New

(par $1). Price—$1.25 per share. Proceeds—For
development of oil and gas properties.
Office
505
Barrow St.,
Anchorage, Alaska. Underwriter—Grace C.
Tucker, 500 Wall St., Seattle, Wash.

first

share.

preferred

Chess

Uranium

for

other corporate purposes.
made
i

•

leaseholds; and for
Underwriter none; sales to be

through corporation and APA, Inc., its
subsidiary.

Bankers

Fire & Marine Insurance

of

two

per

new

share.

shares for each

Proceeds—To

shares held. Price—$11
increase capital and

surplus

accounts.
Office—312 N. 23rd Street,
Birmingham
Ala. Underwriter—None. Statement
withdrawn

3,

Aug. 15.

Belgium (Kingdom of)
(9/11)
Aug. 20 filed $30,000,000 of external loan
15-year sinking
(U. S. dollars). Price—To be sup¬
plied by amendment. Proceeds
To finance various
public works projects being undertaken
by the Belgian
Government.
Underwriters—Morgan Stanley & Co. and
Smith, Barney & Co., both of New York.
fund bonds due 1972

*

—None.

C & D

March

Batteries, Inc.

(letter of notification)
14,000 shares of com¬
mon stock
(par $10) to be offered for
subscription by
stockholders and employees.
Price—$12.50 per share.
Proceeds
For
machinery, equipment, inventories and
working capital. Office
Washington and
—

—•

Conshohocken, Pa. Underwriter—None.
\




Cherry Sts.,

cents

per

com¬

share.

one

pre¬

Office

purposes.

&

Co.,

'

•'

Sept.

1982; Proceeds—To repay bank loans and for new

construction.

Underwriter—To be determined by com¬
petitive bidding.Probable bidders:
Halsey, Stuart &
Co. Inc.;- The First Boston
Corp:; Morgan Stanley & Co,;

-

.

Stone & Webster Securities
Corp.
•

received

Bids
Sept. 10.

on

—

Tentatively

V

'

Faerie Oil & Supplv

Co,, Inc. '9/23-27)
Aug. 16 (letter of notification) 125,000 shares of common
(par $1). Price—$1.20 per share.
Proceeds—For
working capital. Office—77 Woodbine
St., Quincy, Mass.
Underwriter—Pilgrim Securities, Inc., New York, N. 7.

(par

Proceeds—For oil devel¬

'stock

•

El Paso Natural Gas Co.

Aug. 7 filed $60,000,000 convertible debentures due Sept.
1, 1977 being offered for
subscription by common and
common B stockholders of
record Aug. 26, 1957 on the
basis of $100 of
debentures for each 29 common shares
held; rights to expire on Sept. 11, 1957. Price—100% of
principal amount.- Proceeds—To reduce bank loans and

Corp.

-

for construction
program.

Underwriter—White, Weld

Co., New York.

;

•

I

*

v.' ,..v

-

&

,

Empire Sun Valley Mining Corp., Jerome, Ida.
.(9/3)

.

;

.

:

-

-/

•

ap¬

Aug.. 9 filed 340,000 shares of common stock, of which
200,000 shares are. to be publicly offered at $3 per share
and 140,000 shares to
stockholders of Sun Valley Mining
Corp. at $L per share., Proceeds—For exploration and
acquisition of mines;,and for
working capital. .L'nder?writer—-For public
offer, John Sherry Co., New York.

(par 10£).
market.
Proceeds—To selling stockholders.
Underwriter—Glick & Co., Inc., New York.

.Employers' Group Associates, Boston, Mass.
Aug. 9 filed 88,761 shares of common stock (no par) to

None. American Telephone &
Telegraph Co. owns
proximately 30% of the outstanding capital stock.

Aircraft

Corp., Sanford,

July 5 filed 248,132 shares of

common

-

Me.
stock

Price—At

be

it Columbia Coliseum Corp.
Aug. 20 (letter of notification) 2,773 shares
of 5% par¬
ticipating preferred stock (par $20) and 7,600
shares of
common

stock

(par 10 cents).

—For purchase of

a

erect

and

a

coliseum

Street, Pasco, Wash.
•

nine

acre

sports

arena.

Office—920

Opal

Underwriter—None.

Memphis, Tenn. (9/9-13) '
May 2 filed 750,000 shares of common stock.
Price
$2
per share.
Proceeds—To construct
mill; for payment on
mining leases and royalty agreement.
UnderwriterSoutheastern Securities Corp., New
York.
Consolidated Fenimore Iron
Mines, Ltd.
June 26 (letter of
notification) 150,000 shares of

(par $7).

ronto

Stock

and

common

Price—At market
(closing price on To¬
Exchange as of June 14, 1957 was
$1.82 bid

$1.85 asked, per share). Proceeds—For
mining ex¬
penses.
Office—c/o Roy Peers, 9 De Casson
Rd., Mon¬
treal, Canada.
Underwriters—Thomason, Kernaghan &
Co., Ltd., Toronto, Canada, and R. P. Mills &
Co., Ltd
Montreal, Canada.

offered for subscription

record

August 28 on
each four shares
held,
—To be supplied

the

by

stockholders oi
new share for
on Sept. 17. Price

common

basis

of

one

rights to expire

by amendment

•

Price—At par; Proceeds
tract of land on which
to

Comico Corp.,

stock

28

50

(9/10)
Aug. 8 filed $50,000,000 ®f sinking fund debentures due

Cincinnati & Suburban

—

Bridgeview Towers
Associates, Fort Lee, N. J.
July 25 filed $360,000 of participations in
partnership
interests. Price—$10,000 each
participation (minimum).
Proceeds—To buy an apartment
building. Underwriter

—

Duke Power Co.

Bell Telephone Co.
(9/3)
Aug. 2 filed 124,991 shares of capital stock to be offered
for subscription by stockholders of
record Aug. 27, 1957'
on the basis of one new
share for each 10 shares
held;
rights to expire on Oct. 3, 1957. Price—At
par ($50 pershare.) Proceeds—To reduce bank loans. Underwriter—

Colonial

11

Price

working capital and other corporate

New York.

19 cent

stock

cent).

diamond

(par 10 cents) to be offered in units of

scheduled to be

May 14 (letter of notification) 600,000 shares of common
stock (par
$1—Canadian). Price—50 cents per share.
(U. S. funds). Proceeds—For exploration
costs, etc. Office—5616 Park Ave.,
Montreal, Canada. UnderwriterJean R. Veditz
Co., Inc., 160 Broadway, New York.

Co.

April 25 (letter of notification) I9,8a4 shares of
common
stock (par $5) to be offered to
stockholders on a basis

one

For

—Glendale, L. I„ N.'Y. Underwriter—S. D. Fuller

—

Apache Oil Corp., Minneapolis, Minn.
July 22 filed 200 participating units in Apache Oil Pro¬
gram 1958.
Price—$10,000 per unit. Proceeds—To ac¬
quire, develop and operate oil and gas

(par

—

and one common share.
Price—$10.10 per unit.
Proceeds—To acquire Big Ben Supermarkets; for
equip¬
ment and merchandise for five new
supermarkets; and

Office—42 Broadway, New York
4,
N. Y.
Underwriter—G. F. Rothschild & Co., Inc., New
York, N. Y.
'

-

stock

per

June 28.

on

ferred

opment operations.

York.

Anchorage Gas & Oil Development Co., Inc.
July 24 (letter of notification) 160,000 shares of common

convertible

Price—$3

stock

stock

Chatham Oil

improvements,

payment of debts and working capital. Office—5020 Wis¬

withdrawn

Gilbert's Quality Super Markets, Inc.
(9/9-13)
Aug. 1 filed 180,000 shares of 7% cumulative first pre¬
ferred stock
(par $10) and 180,000 shares of common

Underwriter—

Carolina

first mortgage bonds (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

$1,030,000;

for working capital. Under.!
Allen Shaw & Co., 405 Lexington
Ave., New
N. Y.;*and. Shaw & Co., San Marino, Calif.

Herrin Co., Seattle, Wash.

—

American Trailer Co.,

long

approximately

and

Daybreak Uranium, Inc., Opportunity, Wash.
May 7 filed 631,925 shares of common stock (par 10
cents). Price — At market (approximately 53 cents per
share). Proceeds—To selling stockholders. Underwriter

Carolina Pipeline Co.,
Greenville, S. C." (9/11)
Aug. 16 filed $1,050,000 of 7% subordinate interim notes
due 1963 and 42,000 shares of common stock
(par $1) to
be offered in units of $25 of notes and one share
of
stock. 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.
y

Tex.

D.

St., Hoboken, N. J.

Sept. 23.

drilling on company's lands,
prospecting expenses, working capital and other corpor¬
ate purposes.
Office—83 Campfield St., Irvington, N. J.
Underwriter—Roth &' Co., Maplewood, N. J.

Industries, Inc., New York

Monroe

on

'

mon

filed

Office—701

—

17,

Proceeds

Garden State Securities,
Hoboken, N. J.

American Provident Investors Corp.

Ave., Washington,
Coe, Washington, D. C.

Un¬

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.

Invest¬

(EDT)

a.m.

Cougar Mine Development Corp.
/
March 15 (letter of notification) 560,000 shares of

Caramba Mokafe Corp. of America

Securities Cycle Research Corp., New

consin

'

300,000 shares of common stock (par 10
Price—$1 per share. Proceeds—For exploration
and development program. Underwriter—R. G Worth &
Co., Inc., New York. Stop order proceedings instituted.

York.

&

7

equipment;

Statement

-

cents).

Fund, Inc., New York
shares of capital stock (par $1).

Proceeds—For

Burton

York

derwriter—W. E. Hutton &

filed

new

writers

prepay bank debt and other indebtedness and for work¬

Price—$7 per share.

July 11

for

Drilling, Inc., Olney, III. (9/10)
Aug. 13 filed 250,000 shares of common stock (par $1).
Price—To
be supplied by
amendment.
Proceeds—To
ing capital and other general corporate purposes.
Co., Cincinnati, Ohio.

Bids—Expected

to 11:30

International

term debt in the total sum of

Calvert

(9/11)

Conticca

Corp., Chicago, III.
March 13 filed 558,100 shares of class A common
stock
(par $1). Price—$5 per share. Proceeds — To
discharge
current notes payable, including bank
loans, and

,

Afcsco, Inc., Akron, Ohio

of

•

125,000 shares of $1 par
common
stock (in addition to 175,000 common shares,
or 35,000 shares of
$5 par preferred stock to be offered
to creditors). Price—At par. Proceeds—For payment of
current liabilities and working capital. Office-^-10 Rock¬
efeller Plaza, Nerw York, N. Y. Underwriter—None.

—

June 28

-

to be received up

Proceeds—To Estate of Edith R. Aloe, de¬
ceased.
Underwriters
Newhard, Cook & Co. and
Scherck, Richter Co., both of St.i Louis, Mo.
•

Underwrit¬

.

share).

construc¬

Underwriter—To be determined by
com:
petitive bidding. Probable bidders: Halsey,"Stuart & Co
Inc.; White, Weld & Co. and Shields & Co.
(jointly)Morgan Stanley & Co.; The First Boston: Corp.
and
Harriman, Ripley & Co. Inc. (jointly).-

^ Calunite Corp.
Aug. 19 (letter of notification)

(A. S.) Co., St. Louis, Mo. (9/6)
(letter of notification) 7,450 shares of common
(par $5).
Price—At market (estimated at $37

bonds due

tion program.

,

Pierce, Fenner & Beane and Kidder,
Peabody & Co., both of New York.

Paper Corp., Chicago, III.
J\ily 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
a 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 Co., Chicago, 111.

•

Proceeds—To repay bank loans and for

1987.

ers—Merrill Lynch,

.

Allied

per

anS

y;;y.,yy-

.

^ Consumers Power Co. (9/23)
Aug. 23 filed $35,000,000 of first mortgage

are

Sept. 6 at the rate of one new share for each
held; rights to expire on Sept. 23. Price—To
be supplied by amendment. Proceeds — For expansion.
Office—Park Ridge, 111.
Underwriter—A. C. Allyn &

six shares

Aloe

Probable bid

20,.N. Y.,'

Efromson

Mass.,

•

bidding.

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

Aug. 16 filed 300,000 shares of common stock (par $1)
to be offered for subscription by eommon stockholders

Aug. 9

Underwriter-JTo

competitive

ders: Halsey, Stuart & Co. Inc.; White, Weld & Co

and Thomas Gouzoula, all of Winchester,
the general partners of this Massachusetts
Limited Partnership.

(9/9)

Casualty Co.

by

determined

be

C.

Underwriter—May be Walston & Co.,

American

All

(9/17)

Aug. 15 filed $30,000,000 of debentures due Sept. 1,
iggo
Proceeds—For construction program.

duces electro-dynamic shaker and other vibration test
equipment. Underwriter-—None. Robert C. Lewis, Philip

share. Proceeds—To retire bank
capital. Office—718 South Bould¬

and of preferred, $1 per
loans and for working

Consolidated Natural Gas Co.

Calidyne Corp., Winchester, Mass.
May 1 filed $1,250,000 of Limited Partnership Interests to
be offered first to present limited partners at the rate of
one $1,000 unit for each $1,000 of his present investment;
then to public. Price—$1,000 per unit. Proceeds
lo
construct plant; to purchase machinery and equipment;
and to reduce outstanding demand notes. Business
Pro"

Proceeds—For forma-

lion of life insurance
company,
of which will be owned

51% of the voting stow
by Employees & Group Ass0?1'
ates and the remainder
by The Employers' Liability
Insurance Corp. Ltd. *
Underwriter—Morgan Stanley
Co., New York. Offering—Expected today (Aug. 29).

• Fall River Power Co., Colorado Springs, Colo.
Aug. 23 filed 500,000 shares of common stock (no pa )•
Price—$2 per share. Proceeds—To pay off note, P" '
chase equipment and
milling facilities, for develops
work, and for acquisition of additional property, w°
ing capital and other corporate
purposes.
Underwn

—None.
(

'

•
#

Federal

„

Insurance Co.

June 7 filed
400,000 shares of capital stock (par
ing offered in exchange for
100,000 shares of
Life Insurance Co. of
on

the

Share.

America capital stock (par
Federal shares for each Col

basis

of

Offer

has become

holders of

more

four

h'

...

$U'

.

,

n)

$

effective upon acceptanc
than 95% of Colonial stock and win c0'

Number 5668

186

Volume

The Commercial and Financial Chronicle

...

(927)

tinue to and including Sept. 20, when it expires. DealerManagers—Tne First Boston Corp. and Spencer Trask &
Co., both off New York. Exchange Agent—Fidelity Union
Trust Co., Newark, N. J.

First National Life Insurance Co.,

August 31
Pacific

Phoenix, Ariz.

v

Florida Trust, Pompano Beach, Fla.

(Childs,

Jefferies

and

Syle

&

Co.)

Scott-Paine Marine Corp.___Preferred &

by purchase, lease or otherwise, and to hold,'
subdivide, lease, mortgage, exchange, bargain, sell
convey lands and every character of real property.

acquire
own,

and

Inc.

Cohu

(Winslow,

Stratford

Stetson,

&

(Kidder,

Chemical

notification) 30,000 shares of common
stpck (par $1) to be offered for subscription by common

Foremost

the basis of one new share for each four
shares held. Price—$8.50 per share. Proceeds—For min-

1 ing

Witter

&

(Bids

10:30 a.

(Bids

Underwriter—None.

10

(Bids

Common
Allen & Co.)

and

Co.

CDT)

m.

shs.

200,000

>

Fla.

(9/4)

$12,000,000

•

(Bids

Bonds

.

Hycalog, Inc.

(Auchincloss,
and

f

Parker

*t

Sulzberger

Hallowell,

(Offering

(Newhard,

on

stock

common

(par

stockholders—underwriter

to

Securities

(A.

&

General Am.me

& Film Corp.,

1,537,500 shares of

Comico

New York

ceeds—To

B stoek

common

Corp.

(S.

the

Attorney General of the United States
Underwriter—To be determined by competitive bidding

E.

(W.

Duke

filed

120,000 shares of 5.80%

cumulative preferred stock of Georgia Continental Tele¬
phone Co., and the 5V2% cumulative preferred stock of
South Carolina Continental Telephone Co. and of South¬
Continental

ern
on

Aug. 30,
change will

Telephone

and

accrued

v

offered to the public at par
Dealer-Managers—Paine, Web¬

dends.

General

common

which Were offered in exchange for common

and preferred stocks of Peninsular Telephone

basis of
of

1.3

shares

Peninsular

preferred

of General

and

common,

share

for

each

common

for

Co.

on

the

each share

one-half share of General
of Peninsular $1 pre-

26,320

.

* ijLc>;,

-




Continued

on page

36

Debentures
$25,000,000

(Bids

Invited)

9

or

Fuel

(Wednesday)

(Allen

Toledo

10

(Thursday)
Bonds

about $40,000,000

& Co.)

Terminal

RR

Bonds

—

to be

(Bids

Bond#

Corp

Iron

&

$6,000,000

invited)

October 14

(Monday)

Bonds

Oregon Power Co

California

Preferred

to $50,000,000

Invited) $30,000,000

to be

October
Colorado

$25,000,000

Co.)

Bonds

$25,000,000

Public Service Co. of Indiana, Inc
(Bids

(Wednesday)

September 11

be

to

Debentures

&

(Tuesday)

Commonwealth Edison Co

October

shares

Co., Ltd
Securities

(Bids to be received) $10,000,000

Common

Alsco, Inc.
200,000 shares

Noel & Co.)

Alstyne,

(Van

i

Barney & Co.) $30.0no ono

and Smith,

Co.

(Offering

to

Note & Common

Co

Horner & Co.) $1,050,000

(White, Weld & Co. and Scott,
of debs,

Caroline

and

Deane & Scribner)

(Singer,

(The

(Bids

Common

common stockholders—underwritten
First Boston Corp.) 380,312 shares

(Offering

to

by The

11

EDT)

a.m.

Debentures

&

Beane)

$110,000,000

Texas Eastern

(Bids

Reau &

Co.

Inc.)

(Bids

Ohio

$30,000,000

Power

(Thursday)

Ohio Power

invited)

to

be

(Merrill

New

16

(Monday)

Haven

(Offering

Fenner

Pierce,

&

Bids

Common

stockholders—no underwriting)

Niagara Mohawk Power
(Bids

to

o.

'Bids

$17,500,000

Beane)

Water Co

to

Bonds
EST)

a.m.

Corp

$3,000,000

11

(Bids noon

EDT) $2,500,000

EST)

a m

be

3

'Bids

10

(Bids

$20,000,000

(Tuesday)

EST'

nam

Electric

Bond#

Co

Bonfli

Electric Co

December 11
Suburban

$7,000,000

(Tuesday)

Invited)

December

Bonds
:——Bonds

to

Indiana & Michigan

..ivitedJ ,$50,000,000

S28.000.000

Preferred

Virginia Electric & Power

Debentures

Cylinder Gas Co._
Lynch,

$3,500,000

Bond#
11

December

National

$2,000,000

invited)

be

EDT) $40,000,000

(Bids noon

(Tuesday)

Bonds
to

Co
•

Bonds

Electric Co,

Philadelphia

$20,000,000

Co
(Bids

I

September 12

19

Bonds

Co

invited)

be

$250,000,000

(Wednesday)

Mystic Valley Gas Co.

Bonds

Transmission Corp

(Dillon,

invited)

Lawrence Gas Co

Merrill Lynch, Pierce, Fenner

(Lehman Brothers and

(Tuesday)

Electric
to

York, Inc—Bonds

$50,000,000

Telegraph Co—Debenture#

November

$30,000,000

Sperry Rand Corp

be

to

Merrimack-Essex
(Bids

(Bids

EDT)

a.m.

November 6

Debenture#

Bell Telephone Co.

New Jersey

11

American Telephone &

$30,000,000

Cement Co

(Tuesday)

October 29

Debentures

Corp.)

Boston

First

(Bids

$1,500,000

Lehigh Portland Cement Co
Lehigh Portland

October 22

Consolidated Edison Co. of New

Preferred

Hagan Chemicals & Controls, Inc.--

Invited) $8,000,000

to be

(Bids

by

Bonds

Pennsylvania Power Co

Common

Pipeline Co

Debentures

stockholders—to be underwritten
Stanley & Co.) $35,l56,7b0

common

42,000 common shs.

(White/Weld & Co. and Scott, Horner & Co.) 300,000 shs.

(Wednesday)

Co

Power

Consumers

Morgan

Carolina Pipeline

16

October

Bonds

(Kingdom of)

share

-

>

shares

38,000

Co.)

&

Wisconsin Natural Gas Co.—;
.

-

Co.) 30,000 shares

&

September

stock (par $10)
170,000 shares of 5.28% convertible preferred stock

(par $50)

shares

Common

Union

Dillon,

Debenture#

(Thursday)

invited)

be

to

Co

$100,000,000

Inc

October 8

$50,000,000

invited)

Westcoast Transmission
(Eastman

(Tuesday)

System,

(Bids

Common

(McDonald

New York

Te'ep^one Corp.,

ftlay 24 filed 1,480,787 shares of
and

250,000

Scott & Fetzer Co

were

ber, Jackson & Curtis and Stone & Webster Securities
Corp., both of New Vork.

Gas

Common

Co.

1957.
All shares
V redeemed on

maining 27,880 shares

This offer will expire
not surrendered for ex¬
Sept. 12, 1957. The re¬

Co.)

&

Walker

Preferred

Bonds

1

October 3

>

St. Louis County National Bank
Common
(Offering to stockholders—to be underwritten by»
H.

or

$10,000,000

EDT) $17,000,000

noon

(Bids to be invited)

.Common

be

to

(Monday)

Bell Telephone

Southwestern

$300,000

stockholders)

to

Bonds

30

October

$800,000

Bonds

to

(Bids

,

Weeks) 200,000 shs.

&

Hutton

shares

(Wednesday)

$8,000,000

September

(Tuesday)

10

Invited)

(Bids

Common

400,000

Gulf States Utilities Co.__

Common

Co
Blosser & McDowell)

(Offering

(Morgan Stanley &

Southeast
cumulative pre¬
(par $25), of which 92,120 shares are being
offered in exchange for the following outstanding secu¬
rities on a share-for-shai e basis, plus, in each case, cash
equivalent to the redemption premium for each such
share offered
in exchange: 5V2% and 6% cumulative
preferred stocks of Durham Telephone Co., the 6%
18

$15,000,000

Common

EDT)

noon

be

to

\

Long Island Trust Co

General Telephone Co. of the

July

Bonds

September 25
(Bids

$1,818,000

Co.)

Co—

Power

Belgium

ferred stock

&

Calvert Drilling, Inc

160,000

shares of common
Proceeds—To re¬
tire outstanding debt; for expansion of subsidiary cor¬
poration and for working capital.
Office—c/o Edwin
F. Clements, 5312 Glenwood Ave., Youngstown, Ohio.
Underwriter—L. L. LaFortune & Co., Las Vegas, Nev

(Tuesday)

EDT)

noon

Northern Illinois Gas Co

$1,500,000

Amphenol Electronics'"Corp.

Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971, with detachable

Parking, Inc.

Common

Light Co

(Bids

Columbia

G.

General

Puller

September

Credit, Inc., Washington, D. C.

June 18 (letter of notification) 240,000
stock (par $1). Price—$1.25 per share.

Common

Securities Corp.)

(Hornblower

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.

&

Power

•

Ga.

purchase

Casualty Co

(Kesselman & Co.)

•

General Automatics Corp., Atlanta, Ga.
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¬
bly of controls; and for other corporate purposes. Ad-'
dress—c/o Positronic Corp., 2572 Ridgemore Road, N W.,
Atlanta, Ga. Underwriters—Armstrong & Co., Atlanta,

to

September 24
Utah

Super Markets, Inc.

D.

(Straus,

D. C., but bidding has been postponed.

warrants

$1,125,000

Co

to stockholders.—underwritten by The First Boston
Merrill Lynch, Pierce, Fenner & Beane; Robert W. Baird
Co., Inc.; and William Blair & Co.) 253,494 shares

(Monday)

Strato-Missiles, Inc.

scheduled to be received up to 3:45 p.m. (EDT) on May
13 at Room 654, 101 Indiana Ave., N.-.W., Washington 25,

General

Common
Co.)

&

Service

(Bids

Common

Krueger (W. A.)

Probable, bidders: Blyth & Co., Inc., and The First Bos¬

Corp. (jointly); Kuhn, Loeb & Co., Lehman Brotheri
and Glare, Forgan
& Co. (jointly). Bids —Had been

shares

Preferred & Common

Pro¬

ton

7,450

—.

Dilbert's Quality

(no par)

(par $1).

Bond#

Utah Power & Light Co

Price—$2 per share. Proceeds—For
Office—2517 Bridge St., Paducah, Ky.

Jan. 14 filed 426,988 shares of common A stock

$150,000

(Offering
&

Co.)

Fuller

D.

Public

Common

(Southeastern

•

&

(Friday)

Scherek., Richter

and

Co.

Common

Inc.)

(Hal) Productions

Wisconsin

(Offering to stockholders—underwritten by A. C. Allyn
& Co. Inc.)
300,000 shares

Underwriter—None.

r

by Stone
shares

Co

S.)

Cook

All American Life &

the basis of five shares of class B stock for each

working capital.

r

217,286

Corp.)

September 9

,$100 of .debentures.

and

Roach

Common

September 6
Aloe

offer

•

$18,000,000

Co

Webster

$35,000,000

(Bids to be invited) $20,000,000

(S.

$1), to be offered to
holders of warrants issued March 28, 1957 to holders of
6% subordinated debentures pursuant to an exchange

-

EDT)

a.m.

Bond#

11:30 a.m. EDT)

Northern Indiana Public Service Co

Corp.;

class ,B

ing

Co

(Pilgrim Securities,

Equip. Trust Ctfs.

Bonds

11

Electric

(Monday)

September 23
(Bids

Common

rwru en by Hornblower & Weeks
between 143,000 to 150,00 shares

Eagle Oil & Supply Co., Inc.

shs.

237,039'

Co.)

&

Co

(Bids

Tampa

(Friday)

Blauner & Co., Inc.

(Bids noon EDT) $7,500,000

\

^ Friendly Finance, Inc., Paducah, Ky.

'

Milton D.

Tampa Electric Co

of

Aug. 26 (letter of notification) 20,375 shares of non-vot.

Redpath;

<fc

$4,260,000

Co

Sulphur

(Offering to stockholders-- „.u
Robert Garrett & Sons)

Common

York.

New

Equipment Trust Ctfs.

$300,000

Johnson)

Inc

Southern Pacific

company's products, working capital, addi¬
tional inventory and accounts receivable, for research
and development and for other general corporate purposes.. Underwriter—Mortimer B. Burnside & Co., Inc.,
motion

Lake

and

Corp.;

(Thursday)

September 20

Consumers Power

Silvray Lighting,

^ Forest. Labo a odes, Inc., Brooklyn, N. Y.
Aug. 28 filed 200,000 shares of capital stock (par 10
cents). Price—$2.50 per share. Proceeds—For sales pro¬

i

&

Roman

>

both of New York.

& Co.,

Debentures

Reed & Co., Inc.; Aetna Securities

(Keith,

President, who is the selling
stockholder. Underwriters—Dean Witter & Co. and Allen

Bonds
$20,000,000

EDT)

noon

and

Turnbow,

D.

Grover

(Thursday)

September 5

Aug. 16 filed 200,000 shares of common stock (par $2).
Price—To be supplied by amendment. Proceeds — To

(Wednesday)

EDT)

noon

Norfolk & Western Ry

Jefferson

Dairies, Inc., Jacksonville,

Foremost

Common

September 19

.Bonds

$1,500,000

CDT)

a.m.

200,000 shares

Inc.)

Corp

September 18

Inc

Northwestern Public Service Co

Office—433 S. E. 74th Ave., Portland,

operations.

Ore.

.

(Dean

on

Co.,

.Debentures
$12,000,000
Common

Pacific Power & Light Co

Louisville Gas & Electric Co—

stockholders

•

Dairies,

$12,000,000

(G. H. Walker & Co.) 59,400 shares

$299,999

(Wednesday)

May 28 (letter of

-

Debentures

Co.)

&

Mining Co.__

Common

Mandeli Co.)

September 4

of America

Peabody

(Blyth

IS

Underwriter—None.
Fluorspar Corp.

Debenture#

(Eastman Dillon, union Securities & Co.)
Statham Instruments, Inc

Common

$298,000

Inc.)

(John G.) Film Corp
(Joseph

$91,540

Kidder,

11:30 a.m. EDT) $30,000,000

General Tire & Rubber Co.
Homektake

Preferred

Thorndike,

&

and

Gas Co

Natural

(Bids

Common

$600,000

Quaker State Foods Corp

4

Preferred

Lynch, Pierce, Fenner & Beane
Peabody & Co.) $7,000,000

Consolidated

Empire Sun Valley Mining Corp
(John Sherry Co.)

(Merrill

Common
124,991 shares

(Tuesday)

California Electric Power Co

shares

(Tuesday)

(Offering to stocknoicters—no underwriting)

filed 850 certificates of beneficial interest in
the Trust.
Price—$1,000 per certificate. Proceeds—To
;

1,822,523

Cincinnati & Suburban Telephone Co

None.

March

September 17
Common

underwriting)

September 3

16,500 shares to employees pursuant to stock purchase
options. Price—To public, $12 per share. Proceeds—For
expansion and other, corporate purposes. Underwriter—

CALENDAR

(Saturday)

stockholders—no

to

90,000 shares are to be offered publicly and

which

ISSUE

Telephone & Telegraph Co

(Offering

106,500 shares of common stock (par $4),

July 29 filed
of

NEW

*20.000.004

(Wednesday)

Co—-------

to be

.Bonds
--

invited) $4,500,000

35

The

26

by competitive

10-year 6/0

Angeles,

Proceeds—For operating capital for two

1957 at the rate of one new

International Duplex Corp., San
one

establish five super launderettes and for working cap¬
ital.
Underwriters—Names to be supplied by amend¬

.

,

,

e

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
of warrants which are to be sold at 25 cents per warrant

organizers, incorporators, management, and/or direc¬
Price—$10 per share. Proceeds—For working cap¬
ital and general corporate purposes. Underwriter—None.,

if Gurries Manufacturing Co.
' '
Aug. 20 (letter of notification) 12,000 shares of common
stock (par $10) to be offered to a restricted group of
named individuals.
Price—$12.50 per share (minimum
sale 500 shares). Proceeds—To pay current indebtedness
and for working capital.
Office—1720 S. First Street,
San Jose,
Calif.
Underwriter — Hooker & Fay, San
Francisco, Calif.
Hagan Chemicals & Controls, Inc. (9/11)
Aug. 20 filed 30,000 shares of cumulative convertible
preferred stock (par $50). Price — To be supplied by
—

construction

For

laboratory and working capital.

research

of

Underwriter

Singer,

—

basis

of

each

$100

N. Y.

preferred

one

Holy Land

share

Import Corp.,

for

Houston,

of

notes.

etc.

Underwriter—BenjamiD

(9/17)
de¬

properties and acquisition of additional
mining properties. Underwriter—Eastman Dillon, Union

Co., New York.

if Homestake Mining Co. (9/17) j
Aug. 22 filed $7,000,000 of sinking fund debentures due
1969. Price—To be supplied by amendment. Proceeds—
To repay bank loans and for development of certain
uranium properties and acquisition of additional
mining
properties. Underwriter—Eastman Dillon, Union Securi¬
ties & Co., New York.
Horace Mann Fund, Inc., Springfield, III. !
filed 100,000 shares of capital stock (par
$1)
Price—At market.
Proceeds—For investment. Distrib¬

June 27

utor 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,

if Hudson's Bay Oil & Gas Co. Ltd.
Aug. 27 filed 1,750,000 shares of capital stock (par $2.50)
be

offered

tinental

Oil

for

subscription by stockholders of Con¬
and by holders of ordinary shares of

Co.

The Governor and

Company of Adventurers of England

Trading into Hudson's Bay (''Hudson's Bay Oo.")., The
offering to stockholders of Continental Oil is to be at
the rate of one share for each 15 shares of
Continental
Oil stock held of record Sept.
16, 1957, while the offering
to holders of
ordinary shares of Hudson's

Bay

be

at

the

of

rate

1 1/6

& Gas stock for each 15

Sept. 3,

1957.

Price

shares

of

Hudson's

ordinary shares held of

To

Co

Bay

is

Oil

record

be

supplied by amendment.
Proceeds—For development and exploration costs.
Office
—Calgary, Alta., Canada. Underwriter—None. Continen¬
Oil and

—

Hudson's Bay Co. have
agreed to purchase
75 %> and 25%
respectively, of the shares which shall not
be subscribed for by the
stockholders of the two com;

one

common

Idaho.

International Insurance

1956 filed 1,600,000 shares of capital stock (no
par) of which 708,511 shares are subject to an offer of
rescission. Price—$3 per share." Proceeds—For comple¬
tion of plant, provide for general creditors and for work¬
ing capital. Office—Jackson, Miss. Underwriter—None,
offering to be made through company's own agents.
Dec. 26,

Investments, Inc.,

Englewood, Colo.
July 29 (letter of notification) 100,000 shares of common
stock (par $1). Price—$3 per share. Proceeds—For oper¬
ation of an insurance company in Colorado through its
subsidiaries. Underwriter—American Underwriters, Inc.,
Englewood, Colo.

Molybdenum

shares of

by

Steamship & Salvage Co., Miami, Fla.
(letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—To purchase a ship and for working capital.
Under¬

$2

one

per

10

Mon-O-Co

panies,

.




,

subscription
share and one

Price—To be sup¬

Underwriter—

Oil

units of

one

class A share and 24 class B shares,

which

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¬

shares of stock, or a $100 debenture
Price—Par for debenture, plus

ations, etc., and 8,000 are to be offered for subscription
by existing stockholders, oft a pro rata basis. Price—$75 I
per unit.
Proceeds—For development and exploration
costs, etc. Underwriter—None.

share for each 10 shares of Stock. Proceeds—For

a shopping center and other capital im¬
provements; for retirement of present preferred shares;
and for working capital, etc. Underwriter—None.

Montek Associates, Inc.
July 16 (letter of notification) 60,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—To pur-

(9/20)
com¬

chase

stock

(par $1), may be between 143,000 to 150,000
shares, to be offered for subscription by common stock¬
holders of record Sept. 19, 1957, on the basis of one new
share for each five shares

for

one

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

Co., Inc., Palm Beach, Fla.

undetermined number of shares of

offered

Office/— Grant Bldg., Pittsburgh, Pa.

share of stock.

an

to be

None.

construction of

mon

stock

stockholders in units of

plied by amendment. Proceeds—For expansion program,

Janaf, Inc., Washington, D. C.
July 30 filed $10,000,000 of 5y2-8% sinking fund deben¬
tures due Aug. 1, 1972 and 100,000 shares of common
stock (par 20 cents) to be offered in units of a $1,000
and

common

common

warrant for each seven shares held.

Isthmus

Cook

of America

Corp.

Aug. 14 filed 196,994 shares of common stock (par $1)
and stock purchase warrants to buy an additional 196,994

May 21

writer—Anderson

V

;

;

Mississippi Valley Portland Cement Co.

held; rights to expire

on Oct. 7.
Proceeds—To in¬

working capital and for development of new
projects in the United States and Canada. Underwriters

additional

electronic

test

equipment,

shop ma¬

chinery, and to increase working capital. Office—2604
South State St., Salt Lake
City, Utah. Underwriter—
D. Richard Moench &
Co., Salt Lake City, Utah.
Monticello

Associates, Inc.

Eeb. 18 (letter of
notification) 300,000 shares of common
stock.
Price—At par ($1 per share).
Proceeds — For

—Hornblower

capital

Garrett &

roadside restaurant and gas station. Business—Has been

& Weeks, New York, N. Y.; and Robert
Sons, Baltimore, Md.

uranium

Securities &

tal

of

crease

bentures due 1972. Price—To be supplied by amendment.
Proceeds—To repay bank loans and development of cer¬

to

units

in

three common shares
Each warrant entitles holder to
purchase one common share at $2.75 per share. Proceeds
—To acquire stock of fire insurance unit and for general
corporate purposes. Office — Englewood, Colo Under¬
writer—American Underwriters. Inc., also of Englewood,
Colo. Statement withdrawn July 15.

Aug. 27 filed

Texas

Aug. 22 filed $5,000,000 of subordinate convertible

to

offered

Price—To be supplied by amendment.

if Homestake Mining Co.

tain

be

if Jefferson Lake Sulphur Co.

Feb. 27 (letter of notification) 100,000 shares of common
stock
Price—At par ($3 per share). Proceeds—For in¬

ventory, working capital,
& Co., Houston, Tex.

to

debenture and

Scribner,, Pittsburgh, Pa.

if Harley Patents,
Aug. 16 (letter of notification) 200 shares of 5% cumu¬
lative preferred stock (par $100), to be offered in ex¬
change for $20,000 of 4% notes now outstanding on the
Office—154 East 37th St., New York 16,

$1)

purchase 354,420 additional shares of

to

stock

Price—$3.75 per unit.

.

to

tors.

Proceeds

warrants

share and three warrants to buy

v

Baltimore, Md. v

Insurance Corp.,

Kellogg, Idaho
-j
June 3 (letter of notification). 800,000 shares of common
stock. Price—At par (17^ cents per share). Proceeds
—For mining expenses.; Office—Sidney Bldg.,
Kellogg,
Idaho, Malcolm C. Brown is President. UnderwriterStandard Securities Corp., Spokane, Wash., and Kellogg,

Inc.» 1

118,140 shares of common stock (par

10 filed

common

Investments,

Insurance

International

and

■■■/

-

Mascot Mines, Inc.-,

June

& Co.,

.

by stockholders.

ment.

Price—$1.25 per share. Proceeds—For explo¬
costs, improvements, expansion, etc. Office—Los

Angeles, Calif. Underwriter—Dempsey-Tegeler
Mo. "_
'

Francisco, Call!

500,000 shares of common stock (pal
cent). Price—$1 per share. Proceeds—To equip and

Dec. 21, 1956 filed

privilege.

St. Louis,

stockholders of record July 1
share for each share held. The
remaining 42,500 shares are to be offered to directors
employees and agents of the company for a period of
14 days at $5.62V2 per share.; Price—$6.25 to public,
Proceeds—To increase capital and surplus. Underwriter
—First Maine Corp., Portland;, Me. Burton M.
Cross,
President, will purchase any shares not subscribed for

fered for subscription by

Office—

Underwriter—None.

Phoenix, Ariz.

July 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

M

of capital stock (par S3) 0f
11,000 shares, at $5.3iy4 per share, are to be'of*

which

subsidiaries and to finance expansion program.

Great Lakes Natural Gas Corp.

Deane &

Portland, Me.

if Maine Insurance Co.,
Aug. 22 filed 53,500 shares

$1.50 per share.

outstanding debt and for working capital. Office—
225 East 46th St., New York, N. Y. Underwriter—A. G.
Bellin Securities Corp., 52 Broadway, New York, N. Y.

amendment.

($10 per share). Proceeds—For working capital etc
Henry Behnke is President.
'
'

Underwriter—None.

participation life or endowment con¬
Commercial Life Insurance Co. Price—

pay

Guardian

par

tracts issued by

July 22 (letter of notification) 150,000 shares of common
10 cents).: Price—$2 per share. Proceeds—To

ration

# -I

Improvement Corp., Madison, Wis.
July 29 filed 50,000 shares of common stock. Price—At

holders of special

stock (par

4

Madison

Aug. 16 filed 2,500,000 shares of class A non-voting com¬
mon
stock (par $1) to be offered for subscription by

.

stu

So. La Salle Street, Chicago

Sept. 4 at Room 1100, 231
Illinois.

& Finance Corp.

Inland Western Loan

Calif.

Giant Petroleum Corp.

'

_

July 24 (letter of

^ Genisco, Inc., Los Angeles, Calif.
Aug. 16 (letter of notification) 3,500 shares of common
stock (par $1). Price—At market. Proceeds—To selLng
stockholder.
Underwriter—Lester, Rvons & Co., Los

bidding. Probable bidders: Halsey

Kuhn, Loeb & Co. and American Securi
ties Corp. (jointly); Kidder, Peabody & Co. and Gold
man, Sachs & Co.
(jointly); Harriman Ripley & Co
Inc.; Lehman Brothers and Blyth & Co., Inc. (jointly)'
The First Boston Corp.; Eastman Dilloft, Union Secur '
ties & Co. and White, Weld &tCo.
(jointly). Bids-I
Scheduled to be received up to 10:30 a.m. (CDT) on

art & Co. Inc.;

(9/5)
notification) $300,000 of 6 >4% conveitible debentures due Sept. 1, 1967^ to be first offered for
of y common
stock (par 10 cents) to be offered in units of one $50 < subscription by stockholders. Price — 99% of princi¬
debenture and 20 shares of common stock. Price—$100 / pal amount. Proceeds—To retire bank notes and to pur¬
chase equipment.
Office—505 Aero Drive, Shreveport,
per unit. Proceeds—To discharge short term obligations;
La. Underwriters—Keith, Reed & Co., Inc., Dallas, Tex.;
purchase merchandise inventory; and for working cap¬
Aetna Securities Corp., New York, N. Y.; and Roman
ital.
Office — 1022 18st St., N. W., Washington, D. C.
& Johnson, Fort Lauderdale, Fla.
Underwriter—Whitney & Co., Inc., Washington, D. C.
Hycalog, Inc.

8

(9/4)

8 filed $12,000,000 of first mortgage bonds dim
Sept. 1, 1987.
Proceeds—To repay bank loans and C
construction program.
Underwriter—To be determined

—None.

Securities Corp.

Craft Corp.

(letter of notification) $100,000 of
convertible, debentures and 120,000 shares

Aug.

29, 1957

Aug.

(letter of notification) 1,697
stock to be offered for subscription
21

Aug

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
Stone & Webster

Louisville Gas & Electric

Hutchinson, Minn.
shares of common
by common stock¬
holders on the basis of one new share for e^ch tiv
shares held as of Aug. 20, 1957. Price—At par ($: 0' P
share). Proceeds—For expansion of plant. Undeiwn e
Telephone Co.,

ir Hutchinson

35

Continued from page

Genie

Chronicle.. .Thursday, August

Commercial and FinanciaI

V

(928)

if "Koor" Industries & Crafts Co., Ltd.
Aug. 26 filed 30,000 shares of 6M>% cumulative partici¬
pating preferred stock (par IL 180—$100). Price—$100
per share (payable in cash or up to certain limits, in

expenditures,

including

construction

of

motel,

processing and selling of gravel. Office—203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,
Philadelphia, Pa.

.1 Mortgage Clubs of
America, Inc.
Aug. 19 filed $1,000,000 of participation units in second
mortgages of real estate to be offered for public sale in
vances to subsidiaries in connection with their
units of $100, plus a sales commission of
expansion
$10 per unit
to the
programs. Office—Haifa, Israel. Underwriter—None.
company. Proceeds—To be invested in small loans
secured by second
mortgage on home properties. Office
Krueger (W. A.) Co., Milwaukee, Wis. (9/9-13)
—Springfield, Mass. Underwriter—None. Charles HershAug. 12 filed 100,000 shares of common stock (par $5).
/ man,is President, v.'
Price—$8 per share; ' Proceeds—For construction of new
Mount WHson Mines,
plant, for payment of equipment notes, etc., and for
Inc., Telluride, Colo.
.
June 24 filed
400,000 shares: of class A common stock
working capital.
Underwriter—Straus, Blosser & Mc¬
(par 50 cents). Price—$1 per share. Proceeds—For ex¬
Dowell, Chicago, 111.
ploration and related purposes, including construction of
1, Lehigh Portland Cement Co.
(9/11)
a mill.
Underwriter
Investment Service Co., Denver,
Aug. 20 filed $30,000,000 of sinking fund debentures due
Colo.

State

;

Israel

of

Independence Issue Bonds and State of
Israel Development Issue Bonds). Proceeds — For ad¬

—

1979.

Price—To be supplied by amendment. Proceeds—
To repay bank loans and for expansion and

ital.

Office—Allentown,

Boston

Pa.

working cap¬
Underwriter—The First

Corp., New York.

,

Lehigh Portland Cement Co. (9/11)
Aug. 20 filed 380,312 shares of common stock (par
$15)
to

be

of

record

for

offered for

subscription by common stockholders
Sept. 10, 1957 on the basis of one new share

each

1957.

For

10 shares held; rights to
expire on Sept 25
Price—To be supplied by amendment.
Proceeds—
expansion and working capital. Underwriter—The

First Boston

Corp., Nev^r York.

if Lehigh Spinning Co., Allentown, Pa.
16 (letter of notification) $245,000
par.

convertible

debentures

due

1972.

of

6%

Price

sub¬
At

Proceeds—To redeem outstanding preferred stock

-Underwriter—Warren

Pennsylvania.

,

W.

York

ipal Investment Trust
Fund, Series A. Price—At market.
Proceeds—For investment. Sponsor—Ira Haupt & C°*»
New

York.

Mutual

Investment Trust for Profit SharingRetirement Plans, Inc., Richmond, Va.
March 19 filed
50,000 shares of capital stock (par
to be offered trustees
of profit sharing retirement plans.
Price
At market. Proceeds—For investment. Preside®*
—T. Coleman Andrews.

Office

—

West

5001

Broad St.,

Richmond, Va.

Aug.

ordinated

Municipal Investment Trust Fund, Inc. (N. Y.)
May 9 filed 5,000 units of undivided interests in Munic¬

&

Co., Inc., Allentown

: r \

:

;;;

; -

;,

'

Mutual Investors
Corp. of New York
May 17 (letter of
notification) 295,000 shares of common
stock (par 10
cents). Price—$1 per,share. Proceeds-To

c£3xuirf rea* estate properties and mortgages. Office—1559
Fifth Ave., New York
36. N. Y. Underwriter — Stuart
Securities Corp., New York.
/
■
..

j

Number 5668

Volume 186

The Commercial

...

and Financial

Chronicle

37

(929)

Fund, Princeton, N. J.
filed 250,000 shares of common stock. Price—At
market. Proceeds—For investment. Office—10 Nassau
St., Princeton, N. J. Investment Advisor — Harland W.
Hoisington, Inc., same address.
Nassau

mined bsr competitive
bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; White Weld &
Co.; The First Boston
Corp.; Morgan Stanley & Co. and Drexel & Co.
(jointly).
Bids—Expected to be received on Sept. 12.

May 8

Price

—

To be supplied by amendment.

Proceeds

[ expansion and working capital. Underwriter

—

—

(payable in one, two or three years from
Price—-At par. Proceeds—To retire bank lines
of,
credit and to increase
outstanding loans receivable. Ad¬
dress
P. O. Box 285, Terrenos
Bldg., Taos, N. M.

Merrill

Underwriter—None.

Ffeb. 19 filed 3,120,000 shares of common stock (par one
cent). Price—$1.25 per share. Proceeds—For acquisi¬
properties; for ore testing program; for assess¬
ment work on the Yellowkmfe properties; and for cost
'of a concentration plant, mining equipment, etc. Underwriter—Gearhart & Otis, Inc., New York. Statement ex¬

'■'•
v

• ■

;

:

t

V:.

;

(Province of)

1956, filed $12,000,000 of 25-year sinking fund
1, 1982. Price—To be supplied by

Brunswick
loans.

Proceeds—To

Electric

Power

be

advanced

to

Commission to

The

New

repay

bank

sold

on

vision releases

Sept. 16.

(jointly). Bids—Expected to be received

.

•

Northwestern Public Service Co.1
(9/4)
Aug. 2 filed-$1,500,000 of first mortgage bonds due 1987.
Proceeds—To repay bank loans. Underwriter
To be
determined

by competitive bidding. .Probable Bidders:

up to 10
La Salle

(CDT)

a.m.

on

:

Sept. 4 at Room 1705, 231 So.

St., Chicago 4, 111.

Oil

Ventures, Inc.
May 13 (letter of notification) 2,500,000 shares of
mon

stock.

Price—At

(10 cents

par

per

share).

Pro¬

ceeds—For development of oil and gas
properties. Office
—725 Judge Bldg., Salt Lake
City, Utah. Underwriter-

Mid America
Utah.

Underwriter—E. L. Aaron & Co., New

•

Offering—Date indefinite,

cumu¬

•

Old American Life
Co., Seattle, Wash. »
July 22 filed 15,825 shares of class A stock (par $10) and

3,165 shares of
units

of

one

Price—$260

stock

common

common

per

unit.

share

and

and other
corporate purposes.

class

A

capital.

shares.

For

City, Calif.
New York. !

Underwriter—To be determined
Probable bidders: Halsey, Stu¬

Dillon, Union Securities & Co.
Co. (jointly); Lehman Brothers
(jointly); Blyth & Co., Inc. and
White, Weld & Co. (jointly). .Bids—Tentatively
expected
to be
received up to noon (EDT) on Sept. 18.
Pacific Telephone &
Telegraph Co. (8/31)
July 26 filed 1,822,523 shares of! common stock to be
offered for subscription by stockholders of
record Aug.
28, 1957 on the basis of one new share for each six shares
of commdrP stbck

arid'/or preferred stock held; rights to

expire Sept: ,30. Price—At par
($100 per share). Pro¬
ceeds—To repay advances from Parent. Underwriter—None.
American
Telephone & Telegraph Co. owns

y0.54% of the voting stock of Pacific T. & T. Co.
• Pemberthy Instrument
Co., Inc.
Aug. 15 (letter of notification) 78,480 shares of class A
Non-voting common stock (par $2.50) and 8,720 shares
°f

class

B

common

stock

(par $2.50)

units of nine shares of class A stock
°

ass

B

stock.

£>ass A stock

Price—$30.50

per

unit

to
and

be

offered

in

share

of

one

($3 per share for

and $3.50 per share for class B stock).

*Yoceeds—For purchase of
capital.

new equipment and working
Office—4301—6th South, Seattle 8, Wash. Un¬

derwriter—None.

^Philadelphia

Electric Co.

(9/12)

20 filed
$40,000,000 of first and refunding niortgage
'fiends dim 10*17.
P-*»rt«M»ids—To
bank loans °nd
for construction
program.
Underwriter—To be deter¬




Office

*■

•;'/

Rose Records, Inc*' 1
<;
F
July 22 (letter of notification) 11,022 shares of common
stock. Price—At par ($1per share). Proceeds—For work¬
ing capital. Office—705 South Husband St., Stillwater,

(9/18)

by competitive bidding.
Co. Inc.; Eastman
and
Kidder, Peabody &
and Bear, Steams & Co.
art &

working

Underwriter—S. D. Fuller & Co.,

•f

Okla.

Underwriter—Richard B. Burns Securities Agency,

Stillwater, Okla.

St. Louis Insurance

Corp., St. Louis, Mo.
1,250 shares of class C cumulative pre¬
ferred stock (par $57).
Price—$97 per share. Proceeds
—To R. M. Realty Co., who is the selling stockholder
March 27

filed

Underwriter

St. Paul

—

Yates, Heitner & Woods, St., Louis, Mo.

Fire & Marine

Insurance Co.

June 25 filed 417,000 shares of capital stock

being offered in exchange for the
stock of
rate

of

Western
1.39

(par $6.25)
outstanding capital

Life Insurance Co., Helena, Mont., at
St. Paul stock for each share of

shares of

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.

it Sanitary Dishwasher Co., Inc.
Aug. 22 (letter of notification) 50,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For
working capital and general corporate purposes.
Office—354 West 44th St., New Y'ork
writer—None.

36/ N.v Yr.

state.

/

Merrill

Brothers and

Lynch, Pierce, Fenner

New York.

it Statham Instruments,
(9/17)

Inc., Los

Angeles, Calif.

'

chase of land

construction of

and

plant.»Underwrite^—

Blyth & Co., Inc., Los Angeles, Calif.
Steadman Investment Fund, li\c.
May 10 filed 100,000 shares of common stock
to be offered in connection with merger into
of Fund

of

(par $1)
this Fund

Fortune, Inc., Fortune II, Inc., Fortune III,
IV, Inc. Underwriter — William Allen
N. J. Statement effective

Inc. and Fortune

Steadman & Co., East Orange,

July 24.

•••

Stratford
June
mon

27

(John G.)

-

Film Corp.- (9/3-6)

(letter of notification)

stock

production

Office—113

West

57th

199,999 shares of

Price—$1.50

(par 25 cents).

ceeds—For

of

per

com¬

share.

Pro¬

films,

St.,

working capital, etc.
New York. Underwriter —

Joseph Mandell Co., New York.
• Strato-Missiles,

Inc.

(9/9-13)

June 7 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—To

develop Hatfield propulsion system, and other projects;
for 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.

Syntex Corp. (Republic of Panama), /
July 24 filed 1,165,750 shares of common stock (par $2)
to be offered for subscription by common stockholders
rof Ogden Corp. on the basis of one new share for each
,

four shares held

/of

one

Ogden

it Russell Reinforced Plastics Corp.
Aug. 21 (letter of notification) 12,884 shares of class B
stock (par five cents). Price—At market (around $1.25$1.50 per share). Proceeds—To three selling stockhold¬
ers.
Office—521 West Hoffman Ave., Lindenhurst, N. Y.
Underwriter—Aetna Securities Corp., New York.

is*-

Aug. 27 filed 200,000 shares of common stock (par $1), of
which 100,000 shares are to be sold for account of com¬
pany and 100,000 shares for selling stockholders.
Trice
—To be supplied by amendment. Proceeds—For pur¬

;

(9/23-27)

Business—Produces films for television.

—Culver

Aug. 13 filed $20,000,000 of first mortgage bonds due
Sept. 1, 1987. Proceeds—To repay bank loans and for
construction program.

Productions

duction of filmed television commercials and for

working capital.
Underwriter—None.

Pacific Power & Light Co.

1

three

—

(Hal)

Aug; 8 filed 375,000 shares of common stock (par $1).
Price—$3 per share. Proceeds—For expansion of pro¬

(par $10) to be offered in

Proceeds

Roach

j

Sperry Rand Corp., New York (9/11) ;
Aug. 16 filed $110,000,000 of sinking fund debentures due
Sept. 1, 1982 (with common stock purchase warrants).
Price—To be supplied by amendment. Proceeds — For
capital expenditures and working , capital. Underwriters
& Beane, both of

Investment Advisor—Resource Fund Management

Co., Inc., 60 Broadway, New York, N. Y.

Securities, Inc. of Utah, Salt Lake City,

York/

Industrial

Statement to be withdrawn from SEC and the issue

—Lehman

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. Office—350 Fifth
Ave., New York, N. Y.

dent.

.

qualified for sale only in Florida to bona fide residents

Resource Fund, Inc., New York
March 29 filed 100,000 shares of common stock (par $1).
Price—At market.
Proceeds—For investment.
Under¬
writer—None.
D. John Heyman of New York is Presi¬

com¬

Y.

Corp., Jacksonville, Fla.
June 25 (letter of notification) 150,000 shares of common 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,

of that

•

Halsey, Stuart & Co. Inc.;. A. C. Allyn & Co. Inc.; Merrill'
Lynch, Pierce, Fenner & Beane. Bids—To be received

N.

York,

—

—

.

Southern

Fla.

Ramapo Uranium Corp.' (New York)
Aug. 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 17, N. Y. Underwriter—None.

.

New

Sire Plan/ Inc., New York

•

;

Thorndike, Inc., Boston, Mass.; and Syle & Co. of New
York, N. Y.

on

Inc.,

Co.,

Underwriter—Sire Plan Portfolios, Inc., New

& Co.

rities & Co.

&

: —For

preferred stock. Price—At par ($10
per share).
Proceeds — To purchase machinery and
equipment and for working capital. Office—131 Dahlem
St., Pittsburgh, Pa. Underwriter — Childs, Jeffries &

determined

•

July 18 filed $4,000,000 of nine-month 8% funding notes.
Price—At par (in denominations of $100, each). Proceed®
working capital and other corporate purposes.

-

lative convertible

by competitive bidding. Probable bidders: Halsey, Stuart
Inc.; The First Boston Corp.; Morgan Stanley &
Co.; Kuhn, Loeb & Co. and Eastman Dillon, Union Secu¬

Corp., Tulsa, Okla. v
(letter of notification) 275,000 shares of com(par five cents). Price—75 cents per share.
Proceeds — For development of oil and gas properties.
stock

mom

,

Price—

Quaker State Foods Corp. (9/3-6)
July 29 (letter of notification) 9,154 shares of 7%

.*

Aug. 8 (letter of notification) 5,960 shares of 6% curau*
(par $47.50) and 14,900 shares ot
common stock
(par $1)\ to be offered, in units of five
shares of common and two Ashares of preferred. Price—
$100 per unit. Proceeds—For constructing and operating
"marinas," modern boat basins providing berthing facil¬
ities and ail types of related services for pleasure craft.
Office—105 Bedford St., Stamford, Conn. Underwriter—

/*•
,

stock.

;

.

May be

$2.50 per share. Proceeds-^-For investment and general
corporate purposes. Office — Columbia, S. C. Under¬
writer—None.

York.

Sept. 11 at Room 2315,

Underwriter—To be

•

Corp. of South Carolina
common

(9/3)

Silvray Lighting, Inc., Cound Brook, N. J. (9/5)
Aug. 14 filed 237,039 shares of common stock (par 25
cents).' Price—To be supplied by amendment. Proceeds
—To Estate of M. B. Beck, deceased.
Underwriters—►
Auchincloss, Parker & Redpafh and Milton D. Blauner
& Co., Inc., both of New York;, and Hallowell, Sulz¬
berger & Co., Philadelphia, Pa.
,
/
:.

,

Investment

!

Underwriter—Albert

Price—$5 per share.
Proceeds—To retire $125,000 of
outstanding 15% deben¬
tures as well as a $173,180 debt to Trans-Union Produc¬
tions, Inc.; and for working capital. Business—Tele¬

it Niagara Mohawk Power Corp. (9/16)
Aug. 27 filed $50,000,000 of general mortgage bonds due
Sept. 1, 1987. Proceeds—1To repay bank loans and for
program.

?'•

20,000 shares issued to underwriter.

Broadway, New York, N. Y.

construction

,

Pyramid Productions, Inc., New 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

New Jersey Bell Telephone Co.
(9/11)
Aug. 16 filed $30,000,000 of 36-year debentures due Sept.
1, 1993. Proceeds — To repay advances from parent,
American Telephone & Telegraph Co.
Underwriter—
To be determined by competitive
bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co.; Mor¬
gan Stanley & Co.; Shields & Co.; White, Weld &
Co.;
The First Boston Corp.
Bids—Tentatively expected to be

(EDT)

\

(par $5).
supplied jby amendment. Proceeds — To
stockholders.
Underwriter — McDonald & Co.,
To be

—

Seminole Oil & Gas

1, 1967 and 29,400
(par 20 cents) to be offered

Aug? 6 filed 750,000 shares of
;

Underwriter—None.

received up to 11 a.m.

privately.,(

stock

June 24

of

Prudential

Statement withdrawn July 11.

To reduce bank loans.

stock

common

.

(9/10)

O.

common

Winslow, Cohu & Stetson, Inc., New York, N.'Y.

6% 10-year

writer—John R. Boland & Co.,
Inc., New York.

New Haven Water Co., New
Haven/€onn. (9/16)
Aug. 9 filed 60,000 shares of common stock to be offered
for subscription by common stockholders of record Sept.
16, 1957, on the basis of one new share for each three
shares held.. Price—At par ($50 per share).
Proceeds—

195

units

Underwriter—Halsey, Stuart & Co. Inc., New York

and Chicago.

;

$500 of debentures and 50 shares of stock
at $510 per
unit, or $100 of debentures and 10 shares
of stock at $102 per unit.
Proceeds — To repay out¬
standing indebtedness and for general corporate pur¬
poses.
Office—2218 W. Lake St., Chicago, 111. Under-;

debentures due Jan.

amendment.

shares of
in

.

Brunswick

500,000 shares of

market.

Precision Transformer
Corp. (9/5)
(letter of notification) $294,000 of
convertible debentures due June

Underwriter—None.
New

filed

June 12

plus account and to enlarge mortgage loan department.
•

5

•

+ National Security Insurance Co., Elba, Ala.
Aug- 19 (letter of notification) 23,400 shares of common
stock (par $1). Price—$6 per share. Proceeds—For sur¬

Dec. 14,

Plymouth Fund, Inc., Miami, Fla.

Feb.

Price—At

/

.

v

\

capital stock (par $1).
Proceeds—For investment. Under¬
writer— Plymouth Bond & Share
Corp., Miami
Joseph A. Ray vis, also of Miami, is President. Statement
effective Aug. 1.
v

tion of

pected to be amended.

'

Co., Cleveland,

lative preferred stock

—

'

National Lithium Corp., New York

Fetzer

Scott-Paine Marine Corp.

date).

Lynch, Pierce, Fenner & Beane, New York.

&

selling
Cleveland, O.

benture notes

For

Scott

Price

it Pioneer Investment Co.
£
Aug. 15 (letter of notification) 100 shares of common
stock (par $100) and $100,000 of
7% subordinated de¬

National Cylinder Gas Co. (9/16-20)
Aug. 28 filed $17,500,000 of subordinated debentures due
Sept. 1, 1977 (convertible on or before Sept. 1, 1967).
£

■

•

Aug. 15 filed 38,000 shares of

to

and to

holders of options

on

the basis

share for each option to purchase four shares of
common

stock; unsubscribed shares to be offered
Price—$2 per share.
outstanding obligations to Ogden Corp.

certain employees and officers.

Proceeds—To pay

Underwriter—None.

-

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,
Pierce, Fenner & Beane; Kuhn, Loeb & Co. Bids—To be
received at 90 Broad St., New York, N. Y., up to 11 a.m.
(EDT) on Sept. 5.
Tampa Electric Co. (9/5)
Aug. 2 filed 217,286 shares of common ^tock (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
Securities Corp., New York.
Tax

Exempt Bond Fund, Inc., Washington, D. C.
shares of common stock. Price—$25
per share,
Proceeds — For investment. Underwriter—
Equitable Securities Corp., Nashville, Tenn.
June 20 filed 40,000

Under¬

Continued

on

page

38

MV.

'// ;

■

38

The Commercial

(930)

Continued

from

page

(EDT)

noon

Texam Oil Corp., San Antonio, Texas
May 29 tiled 300,000 shares of common stock (par $l)f
to be offered for subscription by common stockholders
on

basis of two

a

3W
ne^ shares for each share held. Price

—To

be supplied by amendment.
Proceeds—To repay
indebtedness, for acquisition and exploration of oil and
gas leases, for drilling and completion of wells, and for
other corporate purposes. Underwriter—None.

★★ Texas Eastern Transmission Corp. (9/11)
Aug. 22 filed $30,000,000 of first mortgage pipe line bonds
due 1977.
Price—To be supplied by amendment.
Pro¬
ceeds— For gas expansion programs and reconversion

Underwriter—Dillon,

program. '

Read

&

Co. Inc.,

New

Texas Eastern Transmission Corp.
July 22 filed 1,000,000 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 Corpus
Christi, Tex. The offer was conditioned upon deposit of
at least

81% (810,000 shares) of outstanding La Gloria
prior to Sept. 6, 1957, and it was announced on
Aug. 8 that in excess of this amount had been deposited.
stock

-

"

Offer may
•

be extended from time to time but not be-

yond Dec.

5, 1957.
6.

Underwriter—None.

Statement ef¬

fective Aug.

Texas Glass

Manufacturing Corp., Houston, Tex.
May 28 filed 2,116,292 shares of common stock (par $1).
Price—$2 per share. Proceeds—For expansion and work¬
ing capital.
Underwriter—T. J. Campbell Investment

Co., Inc., Houston, Texas.
Texota Oil

Co., Denver, Colo.
$650,000 of convertible debentures due
Price — To be supplied by amendment.
Proceeds—To repay bank loans and for drilling of wells,
acquisition of new properties and payment of rentals
Aug. 7 filed
Aug. 1, 1967.

on

oil and

Hopwood,

gas leases.

Underwriter

Minneapolis,

—
Piper, Jaffray &
Offering—Expected this

Minn.

week.

Sept. 24.

on

...

-

if Vitamin Council, Inc.
Aug. 19 (letter of notification)
stock

common

offered

be

to

stock to

be offered

to stockholders

on

share for each two shares held.

new

the

(purchases to be limited to five shares per subscriber).
($100 per share), Proceeds—For working

San

use.

common

of

one

Price—At par

($1

Office—593 Market Street,

Francisco, Calif.' Underwriter—None.

Titanic Oil Co.
stock

Probable bidders: Halsey, Stuart & Co. Inc •
Co.; Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co. (jointly); Blyth & Co., Ine
and The First Boston Corp. (jointly); White, Weld & Co!
Bids—Expected to be received on Oct. 14.
r'
tive bidding.

Aug. 16 (letter of notification) 4,500 shares of common
stock (par $5).
Price — $10 per share. Proceeds — For
working capital.
Office—111 John St., New York 38,

Co., Ltd. (9/10)
Aug. 13 filed $25,000,000 of subordinated debentures
series C. due April 1, 1988 (convertible until July 15,

shares of common stock (par $20). Proceeds—
bank loans and for construction program. Un¬
derwriters—Blyth & Co., Inc. and The First Boston Corp.,

sell 200,000
■To repay

be supplied by amendment. Pro¬
ceeds—For construction of pipeline. Underwriter—East¬
1978).

man

Price

To

—

both of New York.

Dillon, Union Securities & Co., New York.

r

if Wey-Do Manufacturing Co., Inc.
(letter of notification) 1,000 shares of common
stock (no par).
Price — $50 per share. Proceeds — To
manufacture and sell a product known as "Viderna."
Office—40 Remsen St., Brooklyn 1, N: Y.
Underwriter—

April 22 it was announced company plans to issue and
•

construction

Central

The

determined by competitive bidding.

Probable bidders:
Halsey,-Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Equitable Securities Corp.; Eastman Dillon, .Union Securities & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co.;
and Merrill Lynch, Pierce, Fenner & Beane (jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly).
Offering—Expected late in 1957. •

•

•

for

First

Central Louisiana Electric Co., Inc.
April 8 it was announced company plans to issue and
seH;late this year $6,000,000 of-first mortgage bonds.
Proceeds — Together with $4,500,000 of 4%% 12-year

•

Underwriters

,

Boston

Corp. and Merrill Lynch, Pierce,
Fenner & Beane, both of New York; Robert W. Baird &

Co., Inc., Milwaukee,
Chicago, 111.

Wis.;

& Co., Inc., New
shortly after Labor Day.

York.

Offering-

bank loans and for construction program. Underwriters—Kidder, Peabody & Co. and White, Weld &
Co. about the middle of last year arranged the private

-repay
:

.
•

Expected

—

-convertible debentures placed privately, to be used to

Co.,

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

common

and-William:'Blair &
'•••/' /• ••• * •

(par one cent).

Price—Five cents per share. Pro¬
ceeds—For exploration of oil properties.
Office
704
First National Bank Bldg., Denver, Colo. Underwriter—

placement of
bonds.

<

★ UBS Chemical Corp., Cambridge, Mass. (9/17)
Aug. 23 filed 59,400 shares of common stock (par $1), of
which 34,000 shares

are

to be sold for account of

prior preferred shares at $103 per share, plus accrued
dividends; and for capital expenditures and working cap¬
ital. Underwriter—G. H. Walker &
Co., New York.

one

-

July 9 it

Price—To

:

be

supplied

by amendment.
Proceeds—For
investments in subsidiary companies.
Underwriter—
Kidder, Peabody & Co., New York. Offering—Expected
today (Aug. 29).
Uranium Corp. of
America, Portland, Ore.
April 30 filed 1,250,000 shares of common stock
(par 10
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 Griswold of

Portland, Ore., is President.

★ Utah Power & Light Co. (9/24)
A'ug. 22 filed $15,000,000 of first
mortgage

bonds due
Proceeds—To repay bank loans and for construc¬
Underwriter—To be determined
by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston
Corp., and Blyth & Co., Inc.
(jointly); Salomon Bros. & Hutzler; Eastman Dillon
1987.

tion program.

Union Securities & Co. and

Jy);.Lehman Brothers

Smith, Barney & Co. (jointand Bear, Sterns & Co. (jointly);

White, Weld & Co. and Stone & Webster Securities
Corp.
(jointly); Kidder, Peabody & Co. Bids
Tentatively
scheduled to be received
up to noon (EDT) on Sept.
£4.
* Utah Power & Light Co. (9/24)
—

£ ogor ?2 «iled 400'000 shares
$12.89).
Proceeds—To

repay

of

common

bank

loans

stock

and

for

#Sney & C°" (jointly>; Lehman




Brothers; Blyth &

stock, following spin-off by
Aviation, Inc. of its subsidiaries,

•

All States
June 21 it

was

Freight, Incorporated, Akron, O.

announced company

shares

of

$1.20

cumulative

and

on

sell

pre¬

1, 1983.

of

1,
Proceeds—For im¬

system.

■"

Underwriter—To

come

Cleveland

and Shields & Co.

(jointly); The First Boston Corp. and
(jointly); Eastman Dillon, Union Securi¬
Smith, Barney & Co. (jointly); Lee Higginson Corp.; Blyth & Co., Inc.
,
& Co.

ties & Co. and

new

for each

common

22; rights to expire

on

three

Coastal

Sept. 26.

stockholders 55,000

(par $20)

on

Price—$37.50

Proceeds—To increase capital and
surplus.

the basis

as

of

per

.

;

interim

stock):

share.

'■

note

and

five

shares

a

of

$25 debenture or
$1 par common

Proceeds—Together with other funds, for con¬

struction program.

Underwriter

Corp.

Underwriters—Lehman Brothers

and

Allep & Co.. both of New York.

new

stock

\(clt

Transmission

was

000£(each unit expected to consist of
$35

Aug.

—None.

class

J.

reported company plans to issue and

reported the company plans to offer pupabout 191,000 units of securities for about $20,000,-

Jhly, 1 it

shares held

was

Fpr^an & Co.; White, Weld & Co.

Hawaii, Honolulu, Hawaii

share

Electric Illuminating Co.

sell
$2j5,000,000 of first mortgage bonds. Proceeds—To repay
bgink loans and for construction program. Underwriter-To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; The First Boston
Cpr&; Blyth & Co., Inc.; Dillon, Read & Co. Inc.; Blpir
&£Cq. Inc., and Baxter, Williams & Co. (jointly); Glore,

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.

one

acquire investments producing ordinary lfias those with growth potentials.

well

as

Nqv^ 12 it

struction program.

of

■

eember.

1

additional shares of Common stock

,

$30,000,000 of debentures.
Proceeds—To repay ad¬
from American Telephone & Telegraph Co., the

largely to

Electric Co.

Aug. 26 the Bank offered to

Inc.

.

April 9, Bayard L. England, President, announced that
later this year the company will
probably issue about
$5,000,000 of convertible debentures. Proceeds—For con¬

Bank of

Industries,

City Investing Co., New York
July 30, Robert W. Dowling, President, announced that
the;/:directors are giving consideration to the possible
future issuance
of
debentures
which could be us6d

•

•

•

Kuhn,

Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Morgan Stanley & Co.; Kuhn, Loeb
& Co.; The First Boston Corp.; Harriman Ripley & Co.
Inc. Offering — Expected late November or early De-

Oct. 29.

Atlantic City

Drexel

—

bidding.

by competitive bidding. Probable bidders:
Morgan Stanley & Co.; The First Boston Corp. and Hal¬
sey, Stuart & Co. Inc.
(jointly). Bids—Expected to be
on

Proceeds—To

parent.

(10/29)

be determined

opened

later/-

vances

debentures to be dated Nov.
Nov.

expansion

new

Co.!

convertible

announced that company plans to issue

sell $250,000,000 of

1957 and to mature

provement

named

Chesapeake & Potomac Telephone Co. of Md.
July 30 it was announced company plans to issue and

plans to issue and

American Telephone & Telegraph Co.
was

be

surplus. ^Underwriters

Chesapeake & Ohio Ry.
are
expected to be received by the company in
October for the purchase from it of $4,500,000 equip¬
ment trust certificates. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler.

ferred stock series A (par $20). Underwriters—Emch &
Co. and The Marshall Co., both of Milwaukee, Wis.

and

Stockholders y

Bids

Aluminum Specialty Co.

July 17 it

and

shabes held.

—

Co., Inc.,

was

Price—To

capital

five

approving the increase in cap-

Co., New York.

Cleveland, Ohio.

15,000

on

•

announced company plans to offer public¬

share to pay part of cost of purchase of an operating car¬
rier truck line. Underwriter—Fulton, Reid &

March 18 it

each

June 3 it was reported company plans early registra¬
tion of $3,500,000 of 5V2% collateral trust sinking fuiid
bonds due 1972 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 &

ly $2,250,000 of 15-year 6% debentures (with common
stock warrants).
Proceeds—Together with funds from
private sale of 425,000 shares of common stock at $4 per

sell

-

for

Sept. 17

Chesapeake

.

Land-Air, Inc. and Air Carrier Service Corp. into Air¬
craft, Inc., a new company. Underwriter—Cruttenden,
Podesta & Co., Chicago, 111. •

Byers (A. M.) Co.
May 7 stockholders approved

be determined by com¬
petitive bidding. Probable
bidders: Kidder, Peabody &
Co1. and Merrill
Lynch, Pierce, Fenner & Beane (joint¬
ly ), Eastman Dillon, Union
Securities & Co and Smith

•

Co.; The First Boston Corp.; Hemphill, Noyes &
Co.;'fahd W. C. T/angley & Co. all of New York City. »

common

Eastern

(par

construction. Underwriter—To

>

Loeb &

reported company plans to issue and sell

to $12,500,000

up

California

on

italization.
increase

Inc.

was

share

new

willyote

•

Aircraft,

.

United

Utilities, Inc.
Aug. 9 filed 312,506 shares of common stock (par
$10)
to be offered for
subscription by common stockholders
of record Aug. 28, 1957, at the rate of one
new share for
each six shares held; rights to
expire on Sept. 13, 1957.

•

<■

>

com¬

pany and 25,400 shares for selling stockholders. PriceTo be supplied by amendment. Proceeds—To retire
565

■

★★ Chemical Corn Exchange Bank
Aug;|22 it was. announced bank plans to offer to its
'stockholders the right to subscribe for 1.062,765-additiorial shares of capital stock (par $10) on the basis 6f 3

Wayne Jewell Co., Denver, Colo.

Underwriter—Alfred D. Laurence & Co.,
Miami, Fla.

issue of $5,000,000 series G first mort¬

'

■

Truly Nolen Products, Inc.
July 19 (letter of notification) 100,000 shares of common
stock (par 50 cents).
Price—$2 per share. Proceeds—
For plant and laboratory
expansion, advertising and
working capital. Office—6721 N. E. 4th Ave., Miami, Fla.

an

gage

~

Tripac Engineering Corp.
Feb. 27 (letter of notification) 100,000 shares of class A
common
stock (par 10 cents).
Price—$1.50 per share.
Proceeds—For working capital; machine tools; equip¬
ment and proprietary development.
Office — 4932 St.
Elmo Ave., Bethesda 14, Md.
Underwriter—Whitney &
Co., Inc., Washington, D. C.

Illinois Public Service Co.

$10,000,000 of 1st mtge. bonds.Proceeds—To reduce bank
loans and for construction program. Underwriter—To be

(9/23)\

common stock (par $10)
subscription by common stockholders
of record Sept. 20, 1957 on the basis of one new share for
each 10 shares held; rights to expire on Oct. 8, 1.957.
Price—To be supplied by amendment. Proceeds—To re¬

Kidder,

April 9 it was reported company plans to issue and sell

competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler; White, Weld & Co. Bids—Expected to
be received up to noon (EDT) on Sept. 16.

offered

Underwriter—Probably

program.

Peabody & Co., New York.

Underwriter—To be determined by

be

probably in the fall, approximately $7,-

year,

500,000 of sinking fund debentures. Proceeds—To finance

★★Wisconsin Natural Gas Co. (9/16)
Aug. 22 filed $2,500,000 of first mortgage bonds due 1982.
Proceeds—To repay bank loans and for new construction.

★^Wisconsin Public Service Co.

this

sell

None.

Aug. 27 filed 253,494 shares of

Electric Corp.

Central Hudson Gas &
'

Aug. 16

to

Power Co.

Oregon

it was anounced company has applied to the
California P. U. Commission for permission to issue and
13

Aug.

Transmission

Wesfcoast

&

California

Underwriter—None.

N. Y.

•

basis

May 6 (letter of notification) 6,000,000 shares of

bank loans.

Insurance Corp.

General

(10/14)

bonds due Oct. 1, 1987. Proceeds—To repay
Underwriter—To be determined by competi¬

mortgage

-

Shields

if Washington

Oregon Power Co.

'

Aug. 13 company applied to the California P. U. Com¬
mission for authority to issue and sell $10,000,000 of
first

capital, including additional inventory. Office—277 W.
Keilogg Boulevard, St. Paul, Minn. Underwriter—None.

—

per share).«. Proceeds—To complete drilling of test wells
commenced
to determine ultimate volume of steam

available for commercial

California

500 shares of class B
selected pharmacists

to

duce bank loans and for new construction.

ir Thermal Power Co.
Aug. 16 (letter;of notification) 99,999 shares of

;

Price—At par

•

York.

Inc., New York, handled previous preferred stock finanqtng, while Kidder, Peabody & Co. underwrote General
Tire & Rubber Co. financing.

Bids—Tentativelyv scheduled to be received up to

Inc.

37

and Financial Chronicle... Thursday, August 29, 1957

proposal to authorize

a

of

100,000 shares of cumulative preference
(par $10G) 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
& Rubber Co. in 1956.

Colorado Fuel & Iron Corp.
(10/10)
Aug: 19 it was reported company plans to issue and sell
about $40,000,000 first mortgage bonds due 1977 (with
stock purchase warrants). Underwriter — Allen & Co.,
New York. Registration—Expected around Sept. 20.
...

a

Underwriter—Dillon, Read & Co.,

.

Columbia Gas

June
and

System, Inc. (10/3)
6, company announced that it plans the issuance
of $25,000,000 debentures later in 1957.
Pr0"

sale

Number 5668... The Commercial

olume 186

and^nancial Chronicle

ceeds—To help finance 1957 construction program, which
is expected to cost approximately $84,000,000;
Under¬
writer—To be determined by competitive bidding. Prob¬

Merrill

Lynch, Pierce, Fenner and Beane and White,
Co.
(jointly); Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co.
(jointly); Kuhn,
Weld

Haisey, Stuart & Co. Inc.; Morgan Stanley
Co.; Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly). Bids—Expected to be re¬
ceived on Oct. 3.

able bidders:

& Webster Securities

Hathaway

Columbus & Southern Ohio Electric Co.

June 24 it
to

this

company

pla$s to raise

Union

Co.

(10/8)

$25,000,000A May

Underwriter

program.

bidding.

Co.

Salomon

and

Bros.

&

Hutzler

16 it

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 any preferred Stock, may be The First Boston
Corp. and Glore, Forgan & Co. (jointly). (2) For any

(1) For bonds—Haisey, Stuart & Co. Inc.; Salomon Bros.
bonds,
to
be
determined
by
& Hutzler and Eastman
competitive
bidding.
Dillon, Union Securities & Co.
Probably bidders: Haisey, Stuart & Co. Inc.; The First
(jointly); Blyth & Co. Inc., Lazard Freres & Co. and
Boston Corp.; Glore, Forgan & Co. Bids — Expected to L The First Boston Corp.
(jointly); Kidder, Peabody &
be received on
1

Oct. 8.

Connecticut Lkht &

Co. and

;

-

Power Co.

Feb. 18, it was reported company plans to sell not les*

'

than $20,000,000 of first mortgage bonds, possibly thif
Fall, depending upon market conditions. Proceeds—Foi
construction program.
Underwriter — Putnam & Co.,
Hartford, Conn.; Chas. W. Scranton & Co., New Haven, 3
Conn.; and Estabrook & Co., Boston, Mass.

Consolidated Edison Co. of New York,
(10/22);

Inc.

White, Weld & Co.v(jointly); Equitable Securi¬
ties Corp. (2) For stock—Kidder,
Peabody & Co.; Blyth
& Co., Inc., and Lazard Freres & Co.
(jointly).
.Indiana & Michigan Electric Co.
(12/10)
May 20 it was reported company plans to issue and sell
$20,000,000 of first mortgage bonds due 1987. Proceeds
—For

reduction

of

bank

loans

for

and

construction

program. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Haisey, Stuart & Co.

Charles B. Delafield,.Financial Vice-President, on July 8 :
announced that the company has tentatively decided to

Inc.;' Harriman Ripley & Co. Inc.; The First Boston
Corp.; Eastman Dillon, Union Securities & Co. Bids—
Tentatively expected to be received up to 11 a.m. (EST)

issue and sell

on

$50,000,000 of first and refunding mortgage
(probably with a 30-year maturity). This may

bonds

be increased to

ditions.

$60,000,000, depending

Proceeds—From

this

upon market con¬
and bank loans, to '

issue

part of the cost of the company's 1957 construction
which is expected to total about $146,000,000. '
Underwriter—To be determined by competitive bidding.

pay

program

Probable

bidders:

Haisey, Stuart & Co. Inc.; Morgan
Stanley & Co.; The First Boston Corp. Bids—Tentatively
scheduled to be received up to 11 a.m. (EDT) on Oct. 22
•

Consumers

July 9 it

Power Co.

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 shared of

stock

held.

Proceeds—For construction program.

derwriter—Morgan-Stanley & Co.

Un¬

'

July 15 it was reported that company is planning some
equity financing. Underwriter—Probably Blunt Ellis &
Simmons, Chicago, 111. •

Eastern Gas & Fuel Associates

April 3 it was announced company may need additional
capital of between $25,000,000 and $35,000,000 during the
next two years. Underwriter—For any bonds to be de¬
termined
by competitive bidding. Probable bidders:

Hal§eyr Stuart & Co. Inc.; Blyth & Co., Inc.; White, Weld
&

was

$11,700,000
struction

announced company plans to

new

securities.

money

this

year

raise

up

through sale of

to

new

Proceeds—To repay bank loans and for con¬

Underwriter—For bonds, to be de¬
termined by competitive bidding. Probable bidders: Hai¬
sey, Stuart & Co. Ipc.; Lehman Brothers, Merrill Lynch,
program.

Pierce, Fenner & Beane and Reinholdt & Gardner (joint¬
ly).
jc Lawrence Gas Co.
Aug. 21

it

sell

and

1977.

(11/19)

announced

was

the company plans to

issue

$2,000,000 first mortgage bonds, series A, due

Proceeds—For construction program and to repay
Underwriter—To be determined by com¬

bank Joans.

petitive bidding. Probable bidders; Haisey, Stuart &
Co. Inc.; The First Boston Corp.; Kidder, Peabody & Co.
White, Weld & Co. (jointly). Bids—To be opened

Co., and Kidder, Peabody & Co. (jointly).

on

Nov.

Eastern Utilities Associates
and

it

15

Long Island Lighting Co.
April 16 it was announced company plans to sell later
this year $40,000,000 of rist mortgage bonds, series J.
Proceeds—To refund $12,000,000 of series C bonds

due

Jan. l, 1958 and for construction program. Underwriter
—To be determined by competitive bidding. Probable

bidders:

Haisey, Stuart & Co. Inc.; The First Boston
Corp. and Blyth & Co. Inc. (jointly); W. C. Langley &
Co. and Smith, Barney & Co. (jointly).
^ Long Island Trust Co.

annoqneed company proposes to issue
$3,750,000 of 25-year collateral trust bonds.

sell

was

Proceeds
For advances to Blackstone Valley Gas &
Electric Co., a subsidiary: Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Hai¬
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 was announced company plans to file

regis¬
tration statement with the SEC covering the proposed
issuance and sale of up to 88,761 additional shares of
Capital stock to be offered for subscription by stock¬
holders

the

on

basis

of

one

share

new

for

a

each four

shares held. Price—To be supplied by amendment. Procfeeds—For working capital and general corporate pur¬
poses.
Underwriter—Morgan Stanley & Co., New York.
Offering—Expected in late August or early September.

General Tire & Rubber Co.

Aug. 6 it
an

was

of

issue

(9/17)

convertible

subordinated

de¬

bentures (with stock purchase warrants attached). Pro¬
ceeds—For working capital. Underwriter—Kidder, Pea¬
body & Co., New York. Registration—Expected late in

August.
Gulf Interstate Gas Co.
I
I

May 3 it

plans to issue some
additional first mortgage bonds, the amount of which has
not yet

was announced

been determined.

Program.

Underwriters—Carl

and Merrill

Gulf

M.

—

For construction

Loeb, Rhoades

& Co.

Lynch, Pierce, Fenner & Beane.

States

I Aug. 5 it
sell

company

Proceeds

was

Utilities

Co.

(9/30)

announced

company plans to issue and
mortgage bonds due 1987.
Pro¬
bank loans and for construction pro¬

$17,000,000 first

ceeds—To

rdpay

gram. Underwriter—To be determined by competitive
bidding.

Probable

bidders:




one

new

share for each

$32 per share.
surplus.

Proceeds

—

Louisville &
Bids

are

—

shares held. Price

seven

To increase capital

and

Haisey, Stuart & Co. Inc.;

^ Mystic Valley Gas Co. (11/19)
Aug. 21 it was announced company plans to issue and
sell $3,500,000 first mortgage bonds, series B, due 1977.
Proceeds—To repay bank loans
and for construction
program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Haisey,'Stuart & Co.
Inc.; White, Weld & Co. and Kidder, Peabody & Co.
(jointly); The First Boston Corp.; Blair & Co. Incor¬
porated; Lehman Brothers.
Bids—To be opened on
Nov.

19.

.

,

New Jersey Power &

$5,000,000 of first mortgage bonds.

Nashville

RR.

expected to be received by the company some

Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Mangel Stores Corp.
June 19 it

expected

was

of

bentures due
New

plans to issue,
Underwriter—•

bidding. Probable
Loeb & Co Leh¬
Hutzler (jointly);
Eastman Dillon, Union Securities & Co. and White, Weld
& Co. (jointly); Equitable Securities Corp.; The First
Boston Corp.; Merrill Lynch. Pierce. Fenner & Beane.
be

To

determined

by

competitive

bidders: Haisey, Stuart & Co.; Kuhn,
man Brothers and Salomon Bros. &

Norfolk & Western Ry.

(9/19)

the company up to
Sept. 19 for the purchase from it of
$4,260,000 equipment trust certificates. Probable bid-^
ders: Haisey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Bids

noon

expected to be received by

are

(EDT)

on

(9/25)

Northern Illinois Gas Co.

...

July 1 this company announced that it is planning to
raise between $8,000,000 and $10,000,000 early this fall.
No decision has been made as to the form^of the pro¬
posed financing, but no

consideration is being given to

sale of common stock or

securities convertible into com¬

mon

stock.

Proceeds—For construction program.

Under¬

to be determined by competitive
bidding. Probable bidders: Haisey, Stuart & Co. Inc.;
The First Boston Corp.; Glore, Forgan & Co.; Blyth &

writer—For any bonds,

Bids—Expected to be received on Sept. 25.

(9/23-24)
issue and sell
$20,000,000 of first mortgage bonds. Proceeds—To repay
Aug. 6 it

Indiana

was

Public

Service Co.

reported company plans to

bank loans and for new construction.

determined

be

Undepvriter-—To

by competitive bidding.

Probable bid¬

Haisey, Stuart & Co. Inc.; Lehman Brothers and
Bear, Stearns & Co. (jointly); White, Weld & Co.; Equi¬
table Securities Corp.; The First Boston Corp.; Eastman
ders:

Dillon, Union Securities & Co.; Central Republic Co.
Inc., Blyth & Co. Inc., and Merrill Lynch, Pierce, Fenner &

(jointly); Harriman Ripley & Co. Inc. Bids—Ten¬
tatively expected to be received on Sept. 23 or Sept. 24.

Beane

Ohio Power Co.

(11/19)

May 15 it was reported that this company now plans to
issue and sell $28,000,000 of first mortgage bonds and

70,000 shares of $100 par value preferred stock. Pro¬
repay bank loans.
Underwriter—To be de¬
by competitive bidding.
Probable bidders:

ceeds—To

an

(1) For bonds—Haisey, Stuart & Co. Inc.; The First Bos¬
Corp.; Blyth & Co., Inc.; Eastman Dillon, Union Se¬
& Co. and Salomon Bros. & Hutzler (jointly).

ton

curities

(2) For preferred stocks-Eastman Dillon,

.

v.

reported early registration statement is

issue

1972.

of $3,000,000

Qf

Underwriter—Lee

convertible de¬
Higginson Corp.,

York.

* Merrimack-Essex Electric Co. (11/6)
Aug. 21 it was announced that this company plans to

Pennsylvania Electric Co.
Sept. 12, 1956 it was announced company plans to issue
and sell $6,000,000 of first mortgage bonds. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Haisey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner

&

Beane, Eastman Dillon, Union

Co. and White, Weld & Co.

Securities &

(jointly); Equitable Securi¬

der, Peabody & Co.; Kuhn, Loeb & Co.
ly expected to be received on Oct. 16.
Basin

Permian

Bids—Tentative¬

Pipe Line Co.
a subsidiary of
Issue about $25,300,000

May

termined

mortgage bonds, $3,700,000 of preferred

competitive bidding.
Probable bidders:
Haisey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Salomon
Bros. & Hutzler; Eastman Dillon, Union Securities & Co.
and Wood, Struthers & Co. (jointly); Lehman Brothers;
The First Boston Corp.; Equitable Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane; Kidder, Peabody
& Co. and White, Weld & Co. (jointly).
Bid»-To be
opened on Nov. 6.
by

Unities, Inc.

May 8 it was 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 of the System operating companies during the
three-year period 1957, 1958 and 1959. Underwriter—
Previous stock offering was to stockholders, without
underwriting, with oversubscription privileges.

Ripley &

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—
For repayment of bank loans and new construction.
Underwriter—To be determined by competitive bidding.
Probable bidders: Haisey, Stuart & Co. Inc.; The First
Boston Corp.; Merrill Lynch, Pierce, Fenner & Beane
and Dean Witter & Co. (jointly); Lehman Brothers; Kid¬

of first mortgage bonds, series
B, due 1987.
Proceeds—For acquisition of properties
and construction program.
Underwriter—To be de¬

Middle South

Union Securi¬

Hutzler (jointly); Harri¬
man Ripley & Co. Inc. and Stone & Webster Securities
Corp. (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.
ties & Co. and Salomon Bros. &

Corp.; The First Boston Corp.; Harriman
Co. Inc.; Kuhn, Loeb & Co.

time in the Fall for the purchase from it of $14,400,000
of equipment trust certificates. Probable bidders: Hai¬
sey,

Light Co.

ties

issue and sell $20,000,000

reported that this company is considering

$12,000,000

(9/10)

Aug. 26 it.was announced company plans to offer to its
stockholders of record Aug. 30, 1957, the right to sub¬
scribe for 26,320 additional shares of capital stock on the
basis of

bidders:

termined

19.

'

April

determined, by competitive bidding.

Haisey, Stuart & Co. Incf; Eastman
Dillon, Union Securities & Co.; White, Weld & Co.; Kid¬
der, Peabody & Co.; Smith, Barney & Co., and Blyth &
Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner &
Beane and Stone & Webster Securities Corp. (jointly).
Probable

Northern

and

Cook Electric Co.

Underwriter—To be

Co., Inc.

(10/16)

announced that the company plans, in addi¬

was

Dec. 10.

Laclede Gas Co.

Aug. 5 it

Power Co.

Montana

and sell

was

39

May 20 it was reported company may issue and sell in
the fall about $20,000,000 of debt securities. Proceeds—
For construction program and to reduce bank loans.

Sept. 12, 1956, it was announced company

Power Co.

reported company plans to issue and sell
around 200,000 to 225,000 shares of common stock in the

$50,000,000 of new securities (kind not yet deter¬
no common stock financing is
contemplated.
For- construction

Securities &

Idaho

stated that it plans to offer

be determined by competitive

(jointly); Lazard Freres & Co. and Blyth & Co., Inc.
(jointly); Kidder* Peabody & Co.

mined);

—

offer late this

Haisey, Stuart & Co. Inc.; Equitable
Corp.;Lehman Brothers, Eastman Dillon,

Securities

(attached or in units). Un¬
derwriter—Lehman Brothers, New York.

Proceeds

Co., Waterville, Me.

Probable bidders:

bentures and common stock

to

Sept. 30.

announced company plans soon to offer
stockholders some additional common

was

common

/. Underwriter—To

$Phe majoi
portion will consist of first mortgage bonds which would
be placed privately, and the remainder will include de-

June 25 company

on

approximately $25,000,000 first mortgage bonds, bht
exact amount, timing, etc. has not yet been determined.

refinery and for other corporate purposes.

Edison

(EDT)

Fall

about $64,000,006 to finance construction ori™aproposed

Commonwealth

noon

Houston Lighting; & Power Co.
Feb. 13 it was reported company may

Refining; Co.

reported

(C. F.)

to

Underwriter—Probably H. M. Payson & Co., Port¬
land, Me.

stock. Price—To be determined later.
Proceeds—To reduce short term bank loans.
Under¬
writer—Dillon, Read & Co. Inc., New York.

lfr ifc->'was

its

up

stock.

preferred

Commerce Oil

Allyn & Co. Inc. (jointly); Stone
Corp.; Lee Higginson Corp. Bids-

Expected to be received

July 22 company announced it is planning to sell publicly
in October an issue of $8,000,000 par amount of cumula¬

June

&

Loeb & Co. and A. C.

&

tive

(931)

20

it

was

announced

Northern Natural
of

new

company,

Gas Co., may

securities, in the following form: $15,000,000 of

stock and $6,-

600,000 of common stock. Proceeds—To repay advances
of $9,300,000 from parent, and the remaining $16,000,000
for new construction. Underwriter — Glore, Forgan &
Co., New York.
Public Service Co. of Indiana,

Inc.

(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
and sold by the company, Proceeds—To repay bank loans

(amounting to $25,000,000 at Dec.

31, 1956) and for new

Underwriter—To be determined by com¬
Probable bidders: Haisey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The First Boston Corp.; Hamman Ripley & Co. Inc.; Glore, Forgan & Co.; Kuhn, Loeb

construction.

petitive bidding.

Continued

on page

40

W (932)'

<

•'

.

;

•

'!

Continued from, page

i.*»'

C

*1.•>

-

I

I

Southern Union Oos Co. /// «'♦.

_v.a

*,

^///// A:Av

....

.

.is

*:/./c..

.

Public

Service Electric

Aug. 1 it
eeli in the

announced

was

& Gas

Co./;;

Southwestern Bell Telephone Co.

anticipates it will

company

with

Louis County

Aug. 2 it

National Bank

April 15 it

200,000 additional shares of

common stock. Underwriter
Co., Los Angeles, Calif.

500

March 8

Weld &
:.

forjworking capital and general corporate pur¬
Underwriter—Van Alstyne, Noel & Co., New York.

Toledo Terminal

RR.

of

South Carolina Electric & Gas Co.

reported company plans to issue and sell *
#10;OO0,O0Q of first mortgage bonds. Underwriter—To be (
determined by competitive bidding. Probable bidders: ..
was

v.

Southern

Pacific Co.

(9/5)

Bids—Expected to be received

on

Dec. 3.

:"

Reported company plans to sell an issue
$5,000,000 convertible subordinated deben¬
Proceeds
To finance plant) expansion and in¬
was

than

—

working capital.

both of New York.
•

Wisconsin

v

.

Public

Service

Co.

'

v

Halsey, Stuart & Co. Inc.; The First Boston f. Aug. 27 it was announced company plans, to issue and
sell about $7,000,000 of first mortgage bonds late in
Bids—Tentatively expected to be received on Oct.

able bidders:

Corp.

■10./:,

;

:

,

.•

•"

;

/.

.."'-V/.';

.

j

(12/3)

company

Underwriters — May be Paine,
Webber, Jackson & Curtis and Blair & Co. Incorporated,
//,'
,//./////:.//
crease

Kalsey, - Stuart & Co. Inc.; The First Boston Corp. and .»■Transcon Lines, Los Angeles; Calif.
tcphman Brothers-(jointly); Kidder, Peabody & Co.;
Eastman Dillon,. Union Securities & Co. Bids—Not ex- y
Aug. 12 it was reported company plans issue aiid sale in
Uepted to be received until next Fall. /•//..
.
/
/October of 40,000 shares of common- stock (par $2.50).,
J

Co.

more

tures.

(10/10)

$6,000,000 of first mortgage bonds. Proceeds—To refund 1
like amount of bonds maturing on Nov. 1, 1957. Under¬
writer—To be determined by competitive bidding. Prob-/

v.*./';' v!

announced

Walworth Co.-

Aug. 6 it

reported company plans to-issue and sell

was

•

was

first mortgage bonds.

000,000 of

by City Industrial Co. <in connection with ac¬

Aug. 12 it

it

plans to sell $20,Probable bidders for
bonds may include: Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Co. and American Securities Corp.
(jointly);
Salomon Bros. & Hutzler; Eastman Dillon, Union Secu¬
rities & Co.; Stone & Webster Securities Corp.;
White,

announced company plans to issue and
shares of 70-cent cumulative convertible

was

stock and
poses.

the

Virginia Electric & Power Co.

quisition of Bethlehem Foundry & Machine Co. common

Smith-Corona, Inc.
Aug. 1 it 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^

/./*;:

parent)

its

latter

,

150,000

held

paragraph.

to its common

was

and to common stockholders 0!
$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.
,/
J //.

preferred stock (par $10). Price—Expected to be be¬
tween $11,121/2 and $11.50 per share, depending upon mar¬
ket conditions. Proceeds—To discharge a note of $1,160,-

plans to issue and

pell in September or October of this year a maximum of

in this

also announced Blackstone plans to offer
stockholders (other than Eastern Utilities

the

Superior Tool & Die Co.
July 26 it

securities mentioned

Associates

•

11.

Dec.

sell

Brothers, New York.

to

new

on

Siegler Corp.

cTan. 14 it

plans to issue and
of first mortgage bonds, series B, due
Proceeds—To repay bank loans and for construe-

of Blackstone.
The latter, in
turn,
dispose by negotiated sale the first three

assets

certain

proposes

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Blair & Co. Incorporated. Bids—To be opened

t'.

man

(12/11)

$4,500,000

1987.

'

I '

1.

tion program.

A Co., Inc., San Francisco, Calif.

—William R. Staats &

Oct.

Blackstone

sell

Diego Gas & Electric Co.

company

Valley Gas Co.
April 15 it was announced company, a subsidiary oi
Valley Gas & Electric Co., plans to issue
within one year, $4,000,000 of bonds, $1,100,000 of note*
and $900,000 of preferred stock to its parent in ex¬
change for $6,000,000 of notes to be issued in exchange

-

by

Aug. 21 .it was announced company

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

announced

$100,000,000

'
/■

on
the: basis, of one- share: for- each, five/shares' held :
Price—$31 per share. Proceeds—To increase capital anci
surplus. Underwriter—Kidder, Peabody & Co., New York.V

for

the right to subscribe for
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.

was

on

^Suburban Electric Co.

SO,000 additional shares of capital

June 25 it

received

be

determined

be

(9/10)

holders of record Sept. 9, 1957

San

-

Proceeds —For

-

Underwriter—To

announced Bank plans to offerto its stock¬

was

- -

expansion program.
competitive bid—ding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co. Bids — Tentatively expected to
debentures.

new

Underwriter—May be Merrill Lynch, Pierce, Fenner &
Beane, New York.
St.

.

(1,0/lj)

May 24 directors approved the issuance of

Fall of 1957 or in 1958 $25,000,000 of preferred
(in addition to $60,000,000 of bond now registered
the SEC).
Proceeds—For construction program.

ctock

.-

* v

stockholders of, record
July- 31,1957 the right r to subscribe on prvbefore Aug
26, I95T fo# :17,60Q: shares vpfv-capital ^ckv(par

i,;i

A':*/"l

r

Unio» l**tiopol?«*«ite o# iaowoll

v

Aug. j6 the Bank pffered- to its;

Lil V*"- May 16 it was repdrted company pia*$ tp issue and sell: !
& Co., Salomon Bros. & Hutzler and Eastman Billon. ; about
$10,000,000 of debentures this summer;
•
Union Securities & Go; <jointly). Bid's—Expected to be v For construction program. .Underwriter-—May be Blair- •
ceceived on Oct.-:V.»- L.:;.OTL'~'o'i. —J & Co. Incorporated, New York*

' V .v'

and Financial Chronicle... Thursday, August 29, 1957

The Commercial

-

,,,

•

,

•

Underwriter—Cruttendcn, Podesta & Co., Chicago, 111/

Bids will be received by the company at 165 Broadway, :
New York, .NS Y.j up to noon (EDT) on Sept.15 for the ',

•

1957.

Proceeds—dTor construction program and, to repay :
Underwriters—To be determined by compet¬

bank loans.

itive bidding.
Probable bidders: Halsey, " Stuart ;& Co,
Inc.; Kidder, Peabody & Co.; The pirst Boston Corp.;1
Merrill Lynch, Pierce, Fenner & Beanq; Salomon Bros,!
& Hutzler and Eastman Dillon, Union Securities & Co.
(jointly);; Dean Witter & Co.; Lehman .Brothers;,White,

.:Weld.^.Co,.
Transocean Corp. off California /
\ > Wisconsin' Southern Gas
purchase from it of $7,500,000 equipment; trust certifi- i
Co., l«c.
/
.May 21 it was announced company plans a public offer-;
cates, series YY; due annually from Aug. .1, 1958 to-1972,'>
July ^8 it was reported company- plans to. offer up to
ipgof 1 securities to provide about $6,700,000; of new
inclusive. Probable bidders: Halsey > Stuart & Co/. Inc.; :
$300,000 of additional common, stock to its stockholders,
Salomon Bros. & Hutzler. "./: ://.' :
:7...
/ ;.V. ?• working capital.M
Underwriterr—The' Milwaukee- Co. / Milwaukee, Wis.
•
■-/.: ,
.
.

o

Premium -

Quick

:,

Investors who

for

go

a

/

Bankers' Poll Shows

/'hedge"

went for El Paso Natural Gas Co.'s

Bank Credit Is

$60 million, of 20-year convertible

debentures/'which
first
and

to

the

common

company's
B

offered

were

Reports that heavy demands for
plus the restrictive mone-

common

stockholders.

reasons "

"Tightness" of-

credit

'■", •;

';

.

/ Less unfilled demand for hous¬

,

Exaggerated

mentioned/ by:: bankers

•':",* Z''/' *f

were/

ing: Mentioned by 50.9%. /
/ UnatttaCtivenessr of
rates oir
tary- policy of thel .Federal Rc-/ FlIA and VA mortgages:. Men¬
serve. Bearing this-outr the shift- tioned by 46.1 %\
/ .: / //a
High build ing. costs; Mentioned
to greater selectivity was noted
'

"

Priced

at

carrying

and

par

talY policies of the Federal Re-

a

System have caused a'seri- to a lesser extent' among the by 314%.^
ous tightness of bank credit are smaller banks. Of banks with de-;
Tlie,survey indicates'that there
considerably "exaggerated, /it is posits of under $10 million—well, are several reasons for the in¬

5%%
the

" premium

a

selling

"when-issued"
m

•

The
■

w

iw-ifiiiv

rt

.accofde^ current
m the way of

the

even

emoiiff

market

S
J
disposed

most

_

f

l

vimii
V10US

not

are

t;

much

nut

y> The
bi

terms.

optimistic

observers

^

to anticipate

-

in

104

indicated by a survey of banks
just completed by the Department
°f Monetary Policy of the American
Bankers
Association.
The

®

ai!q a1-^ 2i bu°yancy
^ g
,reI
ng

corporate emissions
debt securities.
But

at

trading

n„varc

I**-

market continues

new issue

serve

coupon and a similar yield,
debentures moved quickly,to

a

*

more

the way of price improvement.
Rather the tendency is to expect
in

(.nnJnJn

nicn

o by

:issue

e

is

shows that 32.5% of the
polled banks consider bank cred-

survey

»

convertible

it

«readily available" in their lo-

1

•

r

redemption, at

share

a

•

l*'

,

.Sit

probably
on

will

in

an

long

they have adopted

short-term credit
businessmen,

.

$40 million of 25-year first

45.5%

and

is available for

consumers, and
Of the responding banks,

reported

that

they

were

0 /c met Wltb S°od reception lending,

wh^n the books

ar-

tainable in

a

quarter of

a

centurv

wei-e

opened. '

-

••

40.8% oi the banks noted
greater selectivity, while 54.5%

tivity has had not much influence
Gn the
aggregate
lending"
Th

survev

total

asked

of

JbJness

Desire

lowest of the three
bids

was

less

than

And

the

unsuccessful
Sfi

«i

ono

to

cooperate1 with

eral Reserve
bankers

for

thciTiud^
small

Mentioned by 44%.

their

23%.

1

thcl™lo!

}iyJi\c ihai o?/
swered '1 auit^a 'number"^7

ing policies for agricultural loans, anyV
Great,er selectivity embraces
The survey shows that banks
eenerally. stricter screening of have/slowed down on mortgage
loan applications-more thorough loans "more than on any other

Fed*
by

policy: Mentioned

' V

V

Men*
"
The survey showed that bank*
>ers are nearly unanimous
apDecline

firms in

tioned

in

prices:

bond

by 15%.

!

proving Federal; Reserve policy*
When asked/for their appraisal of
Reserve policy over the past year
from the standpoint of public wel*
fare, the results were:

they had not changed their lend-

among

bankin^ aggregations.
-

conserv¬

policies, 44% mentioned this
decline in bank liquidity as being
one
of the chief reasons.
Other
factors mentioned as having im¬

K=T£S5:.«— -,■»—k— SPSS S £&£&'& ESSK."a,few,-if
11
comPet*tion
four
rePorted very
foing their long-held hopes.
:
Tliey have been able to look at
yields which have not been ob-

more

ative

,

ing, but that m general adequate

-Well Bought

years

admittedly

ness^oans2'consist ^pr^omfhentlv
ot credits^extended^ to smaK

,

outstanding

Southern California Edison Co.'s farmers.

reverse, after

especially

r,

JhenrinHn^
on/ue 31 196?
011 Au®-

their hands"

banks,

the tightening of credit than the
larger- banks.
Also, the .great
majority of banks, and especially portantly affected lending policies
Reserve policy has brought about the small- and' medium-sized were:'
V ••
•>:-"
greater selectivity m bank lend- banks, report that/ greater selecConcern over economic trends;

fund

Snd..^i,r7StTnt there..is refundins bonc,s. brought to mar- "°re select.vc m making! business
^bSSM»j!!Lt'g2S^SS /I/4 101-°85,tO yieW ar0Und change Tn policy! InPconsumer
Quite the
of thin fare

more

,

A

While there is plenty of
money

and

^

-

^ Mrtacnf to expiore the effects of
desieLd to r^irc moJ^tary policy on bank lending
^S?inuallir stLrtintf• Mar 1 an£investments/
v.
a1?1\
h The' sulTy s^owl that Federal
sinkine

,

the heavy calendar of new offerings scheduled
tov September the general belief
In underwriting and
distributing
Circles is that large-scale or intoe,inclined to
Cor a spell.

more

and another 55.5% conT}ie Department of Monetary over the past year, to feel that
sider n to be only "somewhat Policy pointed but that "it is ob- they are approaching a loaned-up
price of $35 fipM»
'
r
runty, poiiiiea oui mat it is 00tlSatviously significant that small-and position. Of the banks replying to
*
/
More than 1,400 commercial medium-sized banks whose busi- the survey who indicated that

The issue also is redeemable at banks participated in the survey,
the company's option »t prices which was conducted by the De-

over

Ctitutional, buyers

tions.

,?nij!L ~aula llr

= tapering off in recent de- 3
i
Looking

three-fourths of the banks creasing selectivity in bank lend¬
in the country — 92.5% reported ing. The Department explained
that credit was readily available that "with loans expanding and
or only somewhat tight. Of banks deposit volume held down, bariks'
with deposits of over $500 million, ratios of loans to deposits have
58.5% reported the same condi- risen sharply. This has caused
over

,

-

"About right": 83%.

5%.

"Too restrictive":

J

v
;

"Too easy": 2%.
.
And, while they like it Hmv are 11. L** .*
"No opinion": 10%.
tiot going to be
spurred into H
under that of the winning credit review, more consideration type of credit. Seventy-one per
buying rush.
1 v Irtoup.
to past relationship with the loan cent reported less interest in mak- /
"This is indeed an impressive
They know this is a "buyers'
Presumably the fact that under
aPPlicant: and tj/e like—as well as ing FHA or VA mortgages, and endorsement," the Department
market" in a sense some of them «„.i+or
under the adoption of somewhat faster 61.3% have slowed down on other noted, "especially in view of tne
have not known in
entire career*
s blddinS for the issue ap- repayment schedules and limiting real estate loans. The majority of extent to which monetary Pallc/,
And they
naturally are expectine peared
be thinking pretty much lending to the bank's established the banks attributed this change has held down the growth of ban»
to make the most
of it
Dealers aloilg the same lines for repricing customers.
1 more to an overall shortage of assets and in view of the substan¬
realize this and are
prepared to Proved helpful to the group, which
any J-iba"ks, ™>ted that savings deposits relative to mort- tial market depreciation that na
cope with the new situation
tnnV
1
^
crop condltions altect their lend- gage demand than any result of developed in bank bank port¬
. V.,ew-. Hiuauon. , ,
took the bonds down.
,
. ing policies more thaxi the moneFederal Reserve policies.
Other folios."/"• v."
■J
.

.

v

.

..

_




.

.

T

7

Number 5668

Volume 186

.,The Commercial and Financial Chronicle

.,

(933)

The following statistical tabulations

latest week

Business
AMERICAN

IRON

AND

week

STEEL

Latest

7

INSTITUTE:

-

.—.Sept.

1

1

month ended

or

Previous

Week

...indicated steel operations (percent of capacity)
Equivalent to—
Steel Ingots and castings (net tons)-.,

Month

Week

§83.3

month available.

or

gallons

42

Crude

each)

AMERICAN

97.0

/

2,033,000

2,389,000

6,836,850

6,797,400

Aug. 16

7,122,100

117,969,000

8,008,000

—Aug. 16

27,261,000

27,797,000

27,372,000

1,852,000

2,068,000

12,425,000

12,077,000

6,947,100
7,749,000
26,469,000
1,717,000
12,048,000

7,813,000

7,548,000

7,539,000

7,896,000

172,136,000

172,973,000

178,267,000
29,627,000
129,798,000
48,314,000

176,202,000

_

-Aug. 16
—Aug. 16
—.Aug. 16
stocks at refineries, bulk terminals, In transit, In
pipe lines—
Finished and unfinished gasoline (bbls.) at
-Aug. 16
Kerosene (bbls.) at
—Aug. 16.

7

CONSUMER

-

—Aug. 16

-

141,999,000

50,923,000

50,138,000

>

;•

ENGINEERING

CONSTRUCTION

NEWS-RECORD:
Total U. B. construction
.

7,899,000

All

7,

.

:

: Pennsylvania

750,640

r.

:: 606,828

7 740,471;

'

743,359

604,541

$257,744,000

$393,636,000

$321,458,000
151,690,000
169,768,000

113,616,000

182,119,000
154,732,000

280,020,000
233,782.000

32,292,000

27,387,000

46,238,000

9,600,000

*9,620,000

9,940,000

9,758,000

437,000

576,000

,

100

.

470,000

j

•

512,000

,

r

:

12,023,000

12,409,000

12,243,000

11,340,000

2G0

222

228

5.967c

5.967c

5.622c

.$66(40

$66.40

'$66.40

$63.15

$53.00

$53.50

$53.83

v

Baa

27.900c

23.075c

—Aug. 21
—Aug. 21

2&.900c

25.875c

26.450c

34.000c

14.000c

44.000c

-lli.OOOc

13.800c

•13.800c

13.800c

15.800c

—Aug. 21

10.500c

—Aug. 21

10.500c

10,000c

*-Aug. 21

26.000c

—Aug. 21

10.000c

94.125c

—Aug. 27

•

I

-Aug.
—Aug.
-Aug.
-Aug.
Aug.

_.

.

.

.

—

Railroad Group
Public Utilities Gioup.
Industrials Group

94.250c

92.64

90.34

•Average corporate
•Aaa

'

27

84.04

27

90.63

Group
Utilities Group.
Industrials Group

Public

—

-J l%.

i.

95.77

103.47
101.47

85.46

96.69

92.93

Short

OF

Other

.

•

++

3.66

Stocks

3.54

.

4.53
4.37

^'4.51

.i 0.4.34

"4.30

.

•

419.2

3.96

4.42

•i*'

h-

4.28

■

V 3.77

.

4.2-1
4.24

420.4

.

249,882

279,462

204,778

92

87

95

477,075

504,138

464,699

110.36

110.27

108.93

sales

—

1,160,960

1,282,5.90
234,570

Dollar'value
.

)ank«

Number of

1,008,240

1,250,590

1,230,760

1;242,810

1,596,630

-'■7,

short sales..

Customers' other saleS—;.
Dollar value

145,720

224,630

158,020

236,030

215,360
233,060

3,
■

3

,

366,5G0

480,800

-47,190
367,770

54,470
383,896

78,050

Short sales

yeaf
wel-

Other

sales

;

438,366

524,059

Total

OF

270,090
1,553,480

261,350
1,643,806
1,905,156

330,320

414,020

1,669,609

2,270,511
2,684,531

round-lot sales—

',v

,

'

ment

-I

1,999,929

—

U.

All

1,200,138

„

•,

$60,584,735

;

1,177,427
$61,855,993

AU commodities other

$75,842,238

,

,

s882,770

.

$43,945,336

«,

?

939,0.96

$46,955483

894,184

•Revised
hs

of Jan.

figure.

,

4,169
;890,015

$45,994,118

l,

1.331,000

Monthly

1957, as against Jan.
Investment Plan.
fPrime

one-half

cent

a

pound.




1,

barrels

-

Zinc

on

%:

>

77,710
607

(a)

(a)

1,418

STRUCTURAL

.

3
3

.

';

228,670

j229,350

•

'*

Adg;,

*

v

(a)
(a)

1,973

2,980

2^9~350
501,190

'

;

409

2,286-

(AMERI¬

CONSTRUC¬

.

220,025

291,750

337,230

329,256

329,626

284,719

54,600
10,900

52,900

70,200

8,300

8,200

6,600

—

157.000

157,200

15,600
7,400
185,200

——

215,000

238,600

251,500

£29,151,000

£13,912,000

of June:

(units)——

range shipment!} (units)
heater shipments (units)

gas

IN

ISSUES

BRITAIN

GREAT

OF U.

S.

CLASS

£14,156,000'

I

•

income^.

$81,201,633

—

deductions

available for
after

fixed

from

fixed

4,165,304

95,430,395
—.

18,639,569

112,958,360

106,249,296

4,707,123
108,251,238

65,018,807

charges

charges

20,557,285
110,414,600

4,562,082

Income

deductions

75,677,416

78,279,861

4,408,488

___™^

-—.™™=_

taxes

.

74,161,042
45,311,586

38,067,198

32,205,730

.

29,897,376

____________u-——

Dividend appropriations:

4,118,819

4,471,746
71,205,670
47,775,391

60,610,319
48,228,064

(v;ay & structure & equipment)

income

$94,318,791

$89,857,315

18,790,844
99,992,477

;

>

i—

Income

•' 194,240

228,670

194,240

461,950

516,370

;

282~bl6

stock™

.

:—___—

_On preferred stock—!
Ratio

282,010
.;•!

common

of

income

to

charges—.

fixed

.

29,808,065
1,055,831
'.'v
A,3.'14

STATUTORY DEBT LIMITATION
,

•

•

m

^

.—As

of

Total face

July 3 (OOO'S omitted):
amount

that

at any time
Outstanding—

551,640

•

may

'

*

30,108,721
'
-

■

•

,25'IP|!;

7,041,586
;«.'v'*3.48

;

: I

■

"

be outstanding

^278,000,000

$278,000,000

272,468,742

270,527,171

272,645,336

107,137

73,716

$272,575,414

$270,634,309

$272,719,053

444,439

445,988

462,021

$272,130,975

$270,188,321

$272,257,031

2,869,024

7,811,678

5,742,968

$272,575,414

—r^-

$275,000,000

106,672

—_______

$270,634,309
5,589,952

$272,719,052
4,177,o20

$268,100,286. $265,044,357
2.741'/i>
2.730'J

$263,541,533

'

■

public debt
Guaranteed obligations

■

582

1,347

'

figures for individual companies.

(tonnage)—estimated-____a:"

Total gross
i

STEEL

STEEL

OF

of June:

furnace shipments

V. S. GOVT.

___t—

—

not owned by the

.

Treasury™.

—

•

3

3

366,710

333,210

403,490

9,281,380
9,614,590

9,260,960
9,664,450

12,061,200

Total gross

531,900

8,840,780

9,207,490

11,529,300

118.0

*118.1

114.6

*93.0

93.4

obligations
outstanding

106.6

103.0

97.5

97.9

97.5

125.6

125.5

122.3

debt

obli¬

total

outstanding—-.

fac© amount

obligations, Issuable

of

above

authority

STATES

GROSS

under

84.3

125.7

public

gations not subject to debt limitation—-

88.9

*106.8

public debt and guaranteed

Deduct—other

Balance
118.0

92.1
106.8

of

sold

.

432

(a)

-

railway operating

On

1

foreign crude runs.
§Based on new annual capacity of 133,495,150 tons
1956 basis of 128.363,090 tons.
tNumber of orders not reported since introduction of

Western

i'<

43,900

%-nr. ■

$58,225,331

j

Aug. 20

Tlncludes

30

130,816

^

.

Other income

Federal

-

1,131,208
7,685
1,123,523

,

Aug. 20

and foods

..

.,

69,534

67,855

—.—,

-

..54,242

V 318,600

'

382

Depreciation
.

8,078

943,451
' -4.355

Aug. 20
than farm

i

(1,000 pounds)—

33,710

v

,
■

53,359

'

Miscellaneous

1,378,479

Aug. 20

port-

1

>105,461

h, ,...

51,325

43,568

>

"

1,204,429
$60,824,132

890,848

Aug. 20

products

'.-105,296

„

(tonnage)—estimated^.

Grand

Processed foods i
Meats

.•

...

30

Income

8. DEPT. OF

commodities

Farm

stan-

74,303

,

•

(Interstate Commerce Commission)—

Total

.

Commodity Group—

)olicy
bank
has

3

Aug.

WHOLESALE PRICES, NEW SERIES
LABOR—(1947-49 = 160):

f the

"

<

198,427,

Income

.

Aug.
Aug.

Other sales
Total sales

{sslvfi

1,823,570

Net
•

/;

Short sales

"

—_

CAPITAL

RYS.

2,576,130

-

;

.Aug.

(SHARES):
'
1
:

73,336
■.

41,086

MIDLAND BANK LTD.—Month of July____

,•

—

MEMBERS

■.

98,247

65.G76

-33,424

a___;

SELECTED INCOME ITEMS

779,381

1,981,840

3

*OTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
ACCOUNT

214,803

112,023

.

*

937

water

Gas

NEW

Other

;

;

293,212
'

77,799

30

Month of April:

aljjit.
——Aug. 3
_-i—Aug.; 3 '
•,

287,779
72,366

■,

INSTITUTE

Domestic

668,880

1,748,8*0

iAugr 3'
.:

.105,688,000

63y741

TION—Month

681,081

414,960

.1
Aug.. 3
Aug. 3

——

•■-

—__u

Round-lot purchases by dealers—r
Number of shares

FOR

-

•

1,689,010

,

AUgj--3,7*
<

73,867,000

106,940,000

105,878,000

_™a_

Net income

.

>,'•
Number of shares—Total sales.—!

;o

78,810(000^
328,051,000

74,543,000

98,300

446,009

'

3

•

;

'

340,870

3

;

3

—'

,

Li-*

1

-

65,405,000

30

June

Gas-fired

16,800
291,720
308,520

'

Round-lot sales by dealers—

245,087,000

»

Gas conversion burner shipments (units)—
Gas-fired boiler shipments (units)

314,930

17,700

Aug.
——Aug.

;

a

GAS APPLIANCE MANUFACTURERS ASSOCIA¬

1,297,710

218,450

by dealers (customers' sales)— j;'V

orders—Customers' total sales

Customers'

CAN

H

-

Odd-lot purchases

205,214,000

-

.

__™'_i_

(a) Not given to avoid disclosure of

298,920

1,035,280

—AugJ 3

i

•

Shipped

1,592,310

195,480

1,039,990

—.Aug.

purchases)—t

;

.■

..

30™_.

Produced

SECURITIES EXCHANGE COMMISSION:
(customers'

54,412,000

7.9,033,000

_____

June

.

Contracts closed

-Aug.

by dealers
shares

38,162,000

*81,445,000

69,368,000

30

Grabbots, etc.

Shipments
1,195,170

-Aug.

i

June

TION)—Month

-Aug.

*

--A' •'*•

r-

468,690

110.39

.Aug.

Number of

ap-

Motes,

273,756

94

* •

107,760,000

(a)

224,619

272,100

11,400

-

'''v

70,242,000

_™L_™_^™

Produced

426.9

286,966

151,035

154,015'

•

53,599,000

.

3.59

427.6

'

224,145

319,714'

«•

-

;

(tons)

Stocks June

3.62

221,320

;

-

-

30™-.

Hull Fiber (1,000-lb. bales)—

'

*19,993
■

Shipped

.4.75.

*

11,115
;

183,095

Produced

3.66

4.83

J

'

9.944
146,563

(tons)

June

4.13
4.26

.—Am

Other ^sales

Odd-lot

i

Linters

4.20

•

■

'I

,

(pounds)

(tons)

4.35

'

»

.

(tons)
(running bales)—/

3.47

12.300

sales

EXCHANGE

i

''

Shipped

4.02

260,018

•TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N. Y. STOCR
'

13,309,827

1:

SEED PROD¬

(tons)

Produced

4.29

152,970

Total sales

^

Stocks

^

■

3.20

.Aug.
-Aug.:
—Aug.

purchases

Aug.

;

Hulls—

4.ii

Total round-lot transactions for account of members—
Total

of

;-'•

•

.....

(tons)

FABRICATED

.

-

404,845

OF

"

>

MEM¬

Other eales
Total eales

Short sales

121.8

and Meal—

Shipped
.

^ *•
•

the floor—

Other transactions Initiated off the floor—
Total purchases

"UV

124.3

11,897,000

DEPT.

(pounds) ,.i

Produced

102,63
j,

,j

..

•

(pounds) 'June

Produced

Stocks

..ic

:3.6^

.Aug. 17

:

eale^

107.6

232,368

S.

June 30

Consumption

102.13

92.50

t".

■

-

(pounds)

4.23

—Aug.
—;——Aug.
on

111.4

(tons)______-I:-k.-_i.i._J.a;

(pounds)

Shipped

Cake

'

,*

4.5 % ]

•

99.68

-

210,600

olicy.
sal of

r.

>'''■104.66

92.20

.Aug. 17

-Other eales
>Other transactions Initiated
Total purchases

„

4.37

,

12

4.86

BERS, EXCEPT ODD-LOT DIALERS AND SPECIALISTS:
Transactions of specialists In stocks In which registered—
Total purchases'
-Aug.

Total sales

U.

—

COTTON

••-

(tons)

Stocks

ACCOUNT

132.0
119.9'

124.6

(tons)

«Stocks

101.47

Aug. 23
FOR

AND

Refined Oil:—
91.22

•

•Aug. 17

109

TRANSACTIONS

116.7

123.4

services

.

,

-OIL, PAINT AND DRUG REPORTER PRICE INDEX—
MOUND-LOT

'

"

(DEPT. OF COMMERCE)—

Crude Oil-:-(
;
Stocks (pounds). June

;

-V98^C

.Aug. 17

—

17.1

SEED

4.3.9

—Aug. 27

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)—
Production (tons)
Percentage of activity
———
unfilled orders (tons) at end of period—

—

and

PRODUCTION

Produced

89.92

•

3.(53'

'4.40

Aug. 27
.—Aug. 27

MOODY'S COMMODITY INDEX.

1949 AVERAGE

172.6)
*'

137.3

•

:

>126.8

.• v

111.8

L

Aug. l (running bales)____

Stocks

13.500c

94.12
'

91.91

3.57

',t

,

Aug. 27
Aug. 27

i

Railroad

r

•

-Aqg.27'

.

;

•

——Aug. 27*'i

—_

A

.

goods

Crushed

25.000c

91.77

91.05

91.62

Aug. 27
-»fc.Aug. 27ij

..•■•

■••■

r.

86.54
•V'

'88.67

•

—..

Baa

;

124.2

•

•

84.43

.38.40

•

25.000c
96,250c

•

27

Aug. 27 v

—

Aa

:

Received at mills

141000c

10.000c

-

90.91

-Aug. 27

U. S. Government Bonds_

•■

..

.93.08

27

MOODY'S BOND'YIELD DAILY AVERAGES:

.

I

27

'•

lh.SOOc

r

90.63

/

39.700c

.

.

94.41

>

:

28.600c

—

86.85

90.20

94.26

-

.

'

26.000c

•'

87.52

.

—•Aug. 27

r—Aug. 27

:

care

June;
'Cotton Seed—

37.225c

-AUg. 21

—:

'Hi

;•>

135.3

125.4

UCTS.—DEPT. OF COMMERCE—Month of
-Aug. 21

'

•—;

"

COTTON

—

tti 4—

i

137.9

care

AGRICULTURE—1957 crop as
Production 500-lb. gross bales..

-

___

•—

A

"

135.3

$57.50

'

Aa

'97.5,1

>

v

176.8

125.4

To

-Aug. 20

MOODY'S BOND PRICES DALLT AVERAGES:
U. S. Government Bonds.
=

-

107.5

1,

98.6

.1127.8

•

176.8 .;

COTTON GINNING

(E. AM. J. QUOTATIONS):

Average -corporate

109.0

>' ;

215

5.967c

Alumlnum (primary pig. 99</») at.
(New "5fork)<*t-

Aaa

104.8

92.0

Medical

:■

122.6-

106.5

•

Private

111

102.8

127.3

91.9

Reading and recreation

101

i

104.2

^

Personal
110

128.4

*

127.8

:

apparel

COTTON

-Straits tin

'

98.5

i,

.111.7

•

109.1

;

girls'

132.5

'..v

,

*-135.4

•

"

boys'__.

121.4;

-

; 112.3

•

,

Public

115

Aug. 22

....

'

127.6

•

-

111.1

125.3

134.7

135.3

i—d

:

.131.4

109.9

.

112.3

Transportation

v>:' :

.—Aug. 20
.Aug.. 20

electrolytic-eopper—
Domestic refinery -lit.
T
v.export refinery at.
Lead (New York) *ati_
Lead (St. I>ouia)-At.
iZinp ^delivered) at.
.tunc
(East Bt. Louis) at.

>•,

.

X

«

'

lbr)
Pig Iron vper-gross ton)
Scrap HBteei ( pgr gross ton)«
PRICES

Other

A

—

•

109.5

104.6

—

107.7
'

122.5

106.6
and

98.0

110.0

125.5

;

Footwear :

Other

DUN

'Finished -eteel- (per

-

•

Aug. 24

:
—

!

operation

and

125.2

■

103.7

126.8

and fuel oil

Household

•

•

electricity™

Women's
;

149(396,000
20,372,000

Aug. 17

(COMMERULAIi AND INDUSTRIAL)
INC

17

and

*

'

-

Aug.

=

106.9

;

Men's

229,798,000

-

•

110.0

Housefurnishings

INDEX—FEDERAL RESERVE

SALES

130.4

vegetables

Solid fuels

618,501

.Aug. 17

'

113.1
112.1

130.6

_

foods at home

Apparel

$411,917,000

.

VtlETAL

v

571,289

104,251,000

(tons)

•RON AGE COMPOSITE PRICES:

r

Gas

.769,644

Aug. 22

DDI80N ELECTRIC INSTITUTE:
Electric output, (in 000 kwh.)_

.

X

'

•

116.2

114.6

113.0

products

Housing

44,996,000

153,493,000
121,201,000

I—5—

anthracite

BEAD STREET,

Other

128,934,000

Aug. 22

SYSTEM—-1947-49 AVERAGE

<

30,717,000

and

119.6

116.2

Meats, poultry and fish
Dairy products

Aug. 22

DEPARTMENT STORE

FAILURES

7-

4,891,365

114.7

home

Fruits

-Aug. 22

COAL OUTPUT ?<U. S. BUREAU OF MINES):
Bituminous coal and lignite (tons)

120.2
-

at

Cereals and bakery

■

Public construction

5,031,125

1917-49=100—

—

135.0.

.—Aug. 22

/State and muniplpal
i Federal.——.

4,699,152

INDEX

items

Food

12,687,000

ENGINEERING

—

7::-r •

,

private construction

,

32,554,000

tons)

PRICE

Food

2,268.000

-*
.

Ago

•

—Aug. 17
freight receive^ from, connections (no. of care)—Aug. 17

Revenue

CIVIL

33,021,000
146,703,000

—Aug. 16

Distillate fuel oil (bbls.) at
Residual fuel oil (bbls.) at

Year

Month

INC.

Month of June:

•

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)

(in

(bbls. of
—

ASSOCIATIONS,

Intercity general freight transported by 361
carriers

average

stills—dally average (bbls.)
Gasoline output (bbls.)
Kerosene output (bbls.)
Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)

■

"2,101,000

to

runs

TRUCKING

Previous

—Month of June:

1

§2,132,000

_

of that date:]

are as

Month

Ago

79.4

„Aug. 1G

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—dally

of quotations,

cases

either for the}

are

Latest

'

Sept,

in

or,

Year

Ago

*82.1

Dates shown in first column

that date,

on

417

production and other figures for th#

cover

delivered basis at centers where

freight from East St. Louis exceeds

UNITED

DEBT DIRECT AND

GUARANTEED— lOOO's

As of July 31
General funds
Net

omitted):

_i

balances

debt

Computed annual rate

.

—

4,475,128

i

r.

and Financial Chronicle

The Commercial
42

...

Thursday, August 29, 1957

(934)

of

would take the form

Continued

from first page

$6.2 billion
manufacturing almost half was

in

represented by military spending.

?",d ph?no* ln this aIea.' " iS

years>

Problems are challenging, and up ;

that

_

in 1957 there will

of

It is estimated that

^111Iirr
Joins Kidder,

The challenge takes two forms
to the manufacturer and the
to the consumer.
To the

—one

0ther

eral Street.

chance to match this

500,000 engineers in this The computer field, however, has major technical developments in
country, 20% of them are engaged many built-in problems — educa- his field, while continually moniin the field of electronics.
It is tion of the consumer, obsolescences toring related technologies, with
interesting to note that the three
which account for greatest

fields

through
vances

considering the problems that
the
industry, perhaps
the
most serious is the fact that fully
half its manufacturing effort is
In

supported directly by the governrespect electronics

this

In

ment.

two fields—one of

other

the

between

roughly

falls

which is almost

entirely supported, while the other

supported only in a minimum
way.
Any appraisal of the future
of the
electronic industry must

is

obviously start with the study of

Department of Defense

the

u,ses

of electronics.

>

and

equipment

too late. Perhaps the
effect ofAthb^introduction of the
transistor is a good example. The
Rrst rather quiet announcement of
the transistor was followed shortly with tremendous enthusiasm by
potential users. It was the answer
to all problems—it had infinite

Recommendations & Literature
364

&

an(j

tbat in addition

1961 would increase

only 10%, but mention

Commerce

there

look

A

the

of

indication

an

defense

these

which

dol-

gives lars—almost half of which is in
into X-ray and radiological equipment,

recent spending

at

areas

for Again the

dollars

potentials in this field

directed during are tremendous, but there is a
the next few years. A comparison serious problem of communicaof the first six months of fiscal tions between the doctor or the

electronics may be

with fiscal 1956 shows some

1957

sharp and important changes. Of
the defense dollar going for electronics, the quota assigned to missiles rose from 22% to 30%, while

from 35% to 31%,
and communica-

aircraft dropped

electronics

and

dropped from 27% to 24%.
The remaining 15% or 16% was
relatively unchanged. The trend
towards the use of electronics in
tions

is

missiles

more

even

One

when it is realized that two years

only 10% of the defense dollarin electronics was used in this

ago

field.
iold

Thus,

we

Texas Portland

of the
II.

tronics,

about

word

more

his

mret important that something be

have seen a three- said about the
this two-year pe-

in

major

probable effects of

reduction

Milk

deg,ree

ot manage.

in

riod.
ing
use

wx

,

Non-Defense

Spending Trends

The

non-military spending is
divided
rather equally
between
consumer
and industrial applicaThe

tions.
old

consumer

and

one

one

leveled

off.

field

that

is

has

an

some-

We have

substantial cutback program.
all

In

probability, however, the cut-

back would be somewhat gradual,
not only for the sake of the electronics industry alone but for the
national
economy
as
a
whole.
There

are

some

indications

that

reduction in defense spending
through our "boom and bust" on would be accompanied by an inTV and things are stable enough crease in spending by some of the
that the long range market can other governmental agencies.
As
be fairly well predicted.
an example, the CAA has an $800

what

It
uses

est

is

S,°n

a

area

expansion,

will

Radio

a

five-year program for air

industrial

exclusive

probably

of

be

Electronics &

the
seen

Televi-

^la

^

control, most of which is

for electronics and the first part
of which has already been funded
Congress. Obviously, however,

for electronics

and 1957.

The introduction of the electronic

compute?^emphasized^ this noin^n
th^strongeSS
the firS
Re^Zn Rand'" T^ivac I
was

delivered

oldest

and

to

^Xville
cne

a

it

knev®

useiess

success

Flertrir

General

Wed

ho

+0

tool

out

use

The

it

that
It

comDute^ fn i
into busTness has

troduction

was

measure

of the

in
no

s

of
in-

been

marked by the adequacy of prepa-

nation for its intelligent use.
^

„

T

.

.

.

.

,

..

'
„

eventual introduction of

^dma£1^problems—^and'

vet

come

must As a shadow o{ things to

^ be taken up in this manner- come, the Air Force has just spent
between^ Q5fi Basically' there would have to be $30 million for a digitally-con-

This industrial spending




nrrianWatinn tn pvnlnit

^ thT fullest^the ne'reauiDment

!!?na!a.C^?rs_.As?ociation oHy a fraction of the slack would it

25T^increase

ing

of

of electronics that the great-

military,
The

the

in

gone

within

best

established

a

tremendous reorganization of

probability

this

Holled ProfiJe and contour miller.

reorganization•tivities in this field

so

as

Maekie, Inc.,

Inc.—Analysis—Leason & Co.,
Chicago 3, 111.

Cement—Analysis—Mickle & Company, Bank
Tex.
Fiber

Glass

Co.—Analysis—Shearson, Ham-

Company

—

Analysis

—

Blair & Co., In¬

Company—Analysis—du Pont, Homsey & Co., 31

Street, Boston 9, Mass.
Bay

Lincoln Road,

If he is to maintain

his

Co., In¬

Wis.

Co., 14 Wall Street, New York 5, N. Y.

Vermillion

R10se products or techniques that
will improve his production efor

Thompson

United Fruit

competitive edge in his own

ficiency

&

corporated, 20 Broad Street, New York 5, N. Y.

government
mntrrii
jr fhic
rpnrPQPnts
Certainly missiles are loom- defense spending upon the elec- radical departures from standard
as the most important defense tronics industry. There can be no practices, he must insure that he
of electronics.
question of the seriousness of any has ad6quate technical competence
increase

Loewi

Southwest Building, Houston 2,

Travelers Insurance

elec- field, he must continually monitor

I think it is

however.

I.

mill &

uses

manufacturer.

Effects of Defense Cutbacks

—

Building, Cleveland 14, Ohio.

Inc., 39 South La Salle Street,

medical scientist on one hand and
the electronic engineer on the
other. Thus, I would like to point magnetic materials. Progress in
out that of the four broad divi- such areas must be followed closesions
of industrial
electronics, ly and, if found promising, must
three of them have a basic prob- be backed up by adequate techlem of trying
to work with nical skills to properly exploit
another discipline — this is an their product potentials.
■
example of major challenge of
The problem of the consumer is
not too difficult from that of the
technology,

significant

Analysis

Texas International Sulphur Co.,

of transistors, where they
are applicable to its field, is just
asking to be scooped by its competition. The transistor is not
unique in this respect, but is being
followed by a host of other new
products of solid state technologies such as the photo-electric
amplifier, the ferro-magnetic
amplifier and exploitation of new

15% the

—

Sylvanite Gold Mines—Analysis—Singer, Bean &
40 Exchange Place, New York 5. N. Y.

is that of medical elec- is now not doing some work on

spending for elec- tronics. This represents about
tronics would increase about 50%. of the industrial electronics

Company

Corp.—Memorandum—Fulton Reid & Co., Inc., Union

Stouffer

tries, the machine tool and the Were many difficulties that no one
economic group on defense ex- electronic, trying to sit down and bacj anticipated.
The result was
penditures indicated that the total work out a joint program.
obvious—the products failed. Yet,
defense
spending from 1956 to
The final area I would like to on the other hand, a company that
that the defense

Register

corporated, 225 East Mason Street, Milwaukee 2,

study by an RCA

A long range

Inc.—Report—Mellott, Thomsen, Pitney, Rowan

Co., 29 Broadway, New York 6, N. Y.

Standard

true, at least as of that

not

were

Company—Bulletin—Lloyd Arnold & Company,
Beverly Hills, Calif.

Camden Drive,

North

Smith Corona

Rfe—r was shock and vibration
proof — it was infinitely stable,
etCi Some manufacturers
were
iUred into producing equipment
taking advantage of these alleged
aggets of the transistor. But they
found that many of these claims

diffi-

INDIAN ORCHARD, Mass. Robert C. Kerr is engaging in a
securities business from offices at
103 Essex Street under the firm
name of Robert C. Kerr & Co. Mr.
Kerr was formerly with Charles
A' Day & Co*

i rmiimv
Peabody

/

Redontlo Tile

to time

Land

,v

Company./

Dealer-Broker Investment

eatflySrtqr

culty of two independent indus-

Trends

Spending

and

Defense

basic

the

,

Continued from page 8

rapid technological ad- an eye to borrowing from them
and
high
capital
costs When applicable. To the manufac-

Another area which has received
considerable attention the „ past
few years is automation and control. This represents about 18%
of the industrial electronics dollar
last year. In the long run the
prospects for this field are excellent. Increased labor costs, shortages of adequate labor supply and
requirements for increased precision all spell a long-range
growth for this field; this field
also has its own built-in problems,
Two of the most serious of these
ore the high initial cost of the

,

T

expenditure on research and de-* (about $1 of capital to $1 of sales), turer this is a critical job, for as
velopment are aircraft, chemical
new technologies develop, he must
and electronics.t
,
Automation and Control
SQ Ume hig en5try tQ be ne'ither too
face

n

Drevimf^v9?6^' 5?*
Rank i S

R. C. Kerr Co. Formed

,

the

of

^

ovui* rnuuci, 1 cauuuj
< jsp^ai tothe FmANciAL curonxcle)
BOSTON, Mass. — James J.
Low, Jr. has joined the staff of
Kidder, Peabody & Co., 75 Fed-

electronics has a manufacturer the' challenge degrowth rate, mands that he keep abreast of all

industrial

0f

"Detroit

challenge of technology,

Challenges of Electronics

about

to

real

million spent for

$350

_

computers, and that this

and develop-

research

definitely

ment oriented;

the

1

«,.,j

Fordon' was

almost nothing in tenance, but basically the pot en- members of the New York and
risen
iiacii s^thaMt js iiv/w tialities are tnere.
ovj mat n, m now nantjes
it wouiu ue
there. It 1 would be Bo$to~nStock Exchanges. " , „

will rise
$1 billion in 1960 and
of the salient characters- about $2 billion in 1965.
It does
the industry is that it is not look as though any other field

One

c

n

With Draper, bears
(Special to:TiiE Financial Chronicle)

Fr0m

about

be

million, 22 of which produce over
70% of all electronic equipment.
tics

:

Up-and-comer

reai

1952 it has
axjoci it iiaa
estimated that

,

,

.

f

Aldinger & Co., Penobscot Build¬
ing, members of the New York

is the dustry into industrial electronics ! BOSTON, Mass.—Paul L. Steere
c0mputer field which has shown would pose many problems on is now, affiliated- with
Draper,
an incredible rise in the past few
education, distribution and main- sears & Co., 50 Congress Street,

the industry is
r
—'
" .
dominated, by
large
companies
with annual sales in excess of $100
.

A maior move of

money.

The

#

,

*

been- ample
the in-

there..has

nQw

aieas.

jplay an .important
is

irppn

go btieet,

relatfiVf£

they

fact

not

are
are

strongly attacked now.

compared to some of the othei

tion of

the

auestion

the

nroblems
piooiems

—

25%; industrial applicaelectronics, 16%, and paits,
13%. As for size of company one
hears
a
great
deal about the
smaller companies, and in truth

graph:)-,

nn

these
tnese

>

roughly
between consumer goods

The remainder was very

divided

hrin^

whv
wny

Well, basi- to
business fices to 837 West Hastings Street"
cally, it
is because it is not ot.scienc^,applicaale to business as o£ gept 3
economically profitable for the
to choose careiully the; time 01
field is the field of communica- moment. When all is 'said and entry-and to be internally qualWith Fordon, Aldinger
tions—both broadcast and mobile done, defense business can be itied to fully exploit the equip(Special.to Tire Financial
—which represents about one- profitable. The selling costs are mentmrdeohmque so as to^nsure
Chronicle)
quarter of the industrial market. £ t
. *f(),
dealing with maximum return of the investDETROIT, Mich.
Post Fordon
Although progress is being made relatively £ew customers
the ment* " ; '
:
has joined' the staff of Fordan

the

Of

service.

This

to
to

'
""sever
vainuuuvfk, Canada—Brink,
Hudson Securities Ltd. has announced the change of their fiim
The challenge of technology is "a*?eand the removal of their n#
°^ir1 ' Huds°n & Lefever,
nhrpist nf ihc
nrodurts Ltd.

of prepared to handle the increased
technical complexity of a very
as sophisticated system.

uses

electronics.

Challenge of
Technology in Electronics

Investment

for maximum effec- Now Brink. Hudson Lefeve.

the tiveness. Similarly, they must be

upon

industry's

problems, of.

and

vigorous their entry

a

attack

concerted

and

Co.—Memorandum—Atwill & Co., C05

Miami Beach 39, Fla.
DIVIDEND NOTICE

-

Number 5668

186

Volume

— Burton
E.
become associated
with Dempsey-Tegeler & Co., 1000
Locust Street, members of the
New York and Midwest Stock Ex¬

LOUIS, Mo.

ST.

has

Brandt

changes.

.

DETROIT, Mich.

Danielson

E.

has

staff of John G. Kinnard & Com¬

affiliated

become

has

Zerweck

Herman F.

—

Winckler Co., PenobBuilding1, members of the

Street.

Mass.

J.

FIFTH

Coffey has become connected with
Mann
&
Gould, 70 Washington
Street,
Stock

the

of

members

COACH LINES, INC.

at the

Boston

dend

SOLVENTS

of

(25c)

50

cents

share

per

on

holders
business

September 3,

■ HREVIPORT,

5.40% Convertible Preferred

5V2% Convertible Preferred

27!/2*

Common

40*

LOUISIANA

the

InternationalSalt

(37J4<)

cents

Common

tion,

Stock

payable

J. Ley*

of

close

173
Secretary

DOLLAR

share has been declared

record

of

close of business

1957.

16,

NATIONAL

on

the

The

books of the

inc

the

at

September

on

UNITED FRUIT

transfer

stock

Company will not

COMPANY

be closed.
Hervey

complete line

Manufacturers of a

VICE-PRES. &TREAS.

J. Osborn

Exec. Vice Pres. & Sec'y.

233rd

batteries.

storage

Consecutive

REGULAR

Dividend
of the

meeting

[of The Colorado Fuel
in

held

Y.

August

on

quarterly dividend on the
of the corporation, in the
amount
of
fifty
cents
per
share,
was
declared payaole October 7. 1957, to stock¬
holders of record at the close of business
on
September 3, 1957. The regular quar¬
terly dividend on the series A $50 par
value
preferred stock in ~ the amount of
sixty-two and one-half cents per share and
also the regular quarterly dividend 0:1 the
series B $50 par value preferred stock, in
the amount of sixty-eight and thr<ee-quar1957,

COMMON STOCK DIVIDEND NO.

110

1957, the Board
of Directors voted a quarterly
cash dividend of $.25 a share
on the Common Stock payable
September 12, 1957, to holders
of record at the close of busi¬
ness August 30, 1957.
On

to

ber

cents

3,

The Board of Directors has this

dend of 40

PRESIDENT

the

•.

the capital stock of

holders of record Sept.

Secretary and Treasurer
Boston, Mass.. August 1.9, 1957

a

$10, payable October

ROBERTSHAW-FULTON

1, 1957, to stockholders of rec¬

R. A. ypDER

the close of business

at

Sep¬

CONTROLS COMPANY

tember 3, 1957.

H0MESTAKE

VicePresident- -Finance

Grssnsburg, Pa.

RALPH B. PLAGER, Secretary

per

NtKFERRED

MINING COMPANY

A

Dividend No. 905

C, "McGREW

D.

per

Secretary

($.40)

cents

BOND AND SHARE

AnacondA

Notice

The Board of Directors
ANACONDA

THE

of

on

the par

payable

its

The Board of Directors has

COMPANY

capital stock of

value of $50 per share,
September 27, 1957,

the

business

of

close

record

of

stockholders

at

dend

declared
of

a
quarterly dividend
thirty-five cents (35*) per

share

the

on

Common

payable September
to

of

shareholders

the close

tember

9,

on

on

August 12, 1957

at

A regular quarterly dividend of

Stock

stockholders

able
ers

share

the

on

$1.60 Cumu¬
Stock, pay¬

books will

of

not

Betsch,

home and

serving

with essential basic products

AND

SEYMOUR M.

©

Secretary

Secretary
August 26, 1957

METALS

FUEL

National

DIVIDENDS
CONSECUTIVE

CASH

DIVIDEND

XZth Dividend
QUARTERLY

of

SIXTY

has

been

third
able

CENTS

per

declared

quarter
on

DIVIDEND
share

for

of 1957,

the

pay¬

September 30. 1957,
of record on

A dividend of twenty-five cents

share has been declared

the stock of Burroughs
Corporation, payable Oct. 21,
1957, to shareholders of record
at the close of business Septem¬

upon

ber 27,

Sheldon F. Hall,
Vice President

—

A

16,

and Secretary

1957.

Detroit, Michigan,
Robert G. Burns,

Treasurer




Reynolds Metals Building
Richmond 19, Virginia

August 21, 1957.

Burroughs

PREFERRED

-

and

The

September 6, 1957.
4'/*%
STOCK

CUMULATIVE
—

A

dividend

of

1%

STOCK

quarterly

ON

COMMON

$1.12)^

October

shareholders

of

1,

a

share,

1957

record

to

Sep¬

tember 6, 1957.
E.
250 Stuart

H.

Corporation

PREFERRED

regular

BIRD, President

St., Boston 16, Mass.

August 22, 1957
Our stock is now listed on the
New York Stock Exchange.

Symbol is EFU.

DIVIDEND

declared
cent on

a

has today

stock dividend of 2 per

the outstanding Common

Stock, payable October

regular

tion

to

cash

dividends

Stock.

on

Sep¬

This is in addi¬

tember 6, 1957.

the

22, 1957

of record

to stockholders

on

pAUL c

August 22, 1957

the

dividend of

COMMON DIVIDEND

STOCK

The Board of Directors

DIVIDEND

regular quarterly

fifty-nine and three-eighths cents
(59%f) a share on the outstand¬
ing Cumulative
Preferred Stock,
4%% Series A, has been declared
for the quarter ending October 31,
1957, payable November 1, 1957,
to holders of record at the close of
business October 11, 1957.

Chemical

share, payable September 28,

1957 to shareholders of record

shareholders

September

company

regular

quarterly dividend of 40 cents

payable

1957.

STOCK

COMMON

a

A

of

HEILBRON

Distillers

a

close

The transfer

REYNOLDS

ASSOCIATES

($.25)

the

at

be closed.

GAS

metals, inc.

to

record

WALTER H. STEFFLER

EASTERN

231st

1957

September 16, 1957.

industry

quarterly
Common

JAMESON

Treasurer

per

Common

20,

I

Broadway, New York 4, N. Y.

machine and

37.'4c

the

business September 10, 1957.

September 30, 1957, to stockhold¬

of record

on

September

payable

August 21,1957

Secretary and Treasurer

American

10, 1957.

share has been declared

lative Convertible Preferred

Sep¬

August 22, 1957.

and Treasurer

The Board of Directors has declared Ihe

per

of

September

COMMON STOCK

($.40)

Secretary

1957.
M.

notice

Preferred Stock

1957

at the close of

business

regular quarterly dividend of forty cents

MORAN

EARLE

Secretary

<8> record
dividend

20,

stockholders

to

Divi¬

JOHN W. HAMILTON,

1957,

record

September

Disbursing Agent.

Stock,

30,

of business

B.

September 3, 1957. *

25

Bank,

Manhattan

Chase

Con¬

iStock, payable

CONTROLS

Dividend

per cent

Preferred

vertible

Penn-Texas

"

has today declared a dividend
of
One
Dollar
($1.00) per
share

of

share of $12.50

per

the $25.00

on

value 5 H

Cumulative

value Capital Stock, payable
September 12, 1957 to stockhold¬
ers of record September 3, 1957.
Checks will be mailed by The

Ntw Yonn, N. Y.

August 22, 1957

par

par

COMPANY

197

NO.

DIVIDEND

has de¬

905 of forty

clared Dividend No.

ELECTRIC

to

STOCK

quarterly

share has been de¬

clared

The Board of Directors

C.

regular

dividend of $0.34375

1957.

to

6. 1957.

EMERY N. LEONARD

capital stock of this Com¬

pany, par

ord
„

on

quarterly divi¬
cents per share on

day declared

DAGGETT

H.

A.

share

Company has been declared,
payable October 15,1957, to share¬

August 22, 1957

September 4,1957.

dividend of seventy-five cents

this

Street, New York

Wall

One

stockholders of rec¬

ord

July 26,

share, were declared payable
cm
September 30, 1957 to stockholders of
record at the close of business.on Septem¬
ters

on

11,1957 payable

Quarterly Dividend
A

per

Company

September 16, 1957

a

stock

by the

Board of Directors
June

Iron Corpora¬

N.

Stock,

declared

was

Irving Trust

share

per

Common

on

STEEL

CORPORATION

Board of Directors*
an J

York,

New

k\3/l

Notice

50c

of

DETROIT

CORPORATION

IRON

22,

to

September 10; 1957.

on

August 28, 195?

stockholders

G0UL

Se"e""r-

"

COLORADO FUEL AND

common

1957,

stockholders of record at the close of

business

DIVIDEND NO.

QUARTERLY DIVIDEh 7

tion

share on
Corpora¬

lj

payable October 1, 1957, to

A

a

the

per

of

October

August 19, 1957

At

this date

of automotive and industrial

D.

THE

GAS

capital stock of this Company,

batteries,

August 26, 1957.

Secretary

dividend of thirty-seven and

a

one-half

a

A. R. BERGEN,

./

to

Dividend Notice
declared

company

common

the

at

NEUMANN,

The Board of Directors has

President

cents

September 6, 1957.

on

1957,

business

B. M. Byrd

1957, to stock¬

record

of

1,
of

coaroiATioN

ROGER HACKNEY, Treasurer

e. McCarthy

August 22, 1957.

twenty-five

30,

J.

UNITED

of

payable

john

outstanding

September

on

25*
27*

.

of

Corporation, payable

this

of

stock

the

on

25*

.

.

.

.

13,

holders

to

record

this

share has today been de¬

per

clared

close

the

on

September

A dividend of ONE
dividend

the

at

quarterly divi¬

a

tember 17, [1957.

91

No.

record

1957.

Common Stock pay¬

capital stock of this corpo¬

Corporation

.

Preferred

5%

declared

day

DIVIDEND NOTICES

I

5% Convertible Preferred

share

per

able

September 27,
1957, to stockholders of record
at
the close of business Sep¬

following rates per share:

of

13,

terly dividend of 50c

m

1957,

DIVIDEND

Y.

tors declared a quar¬

Notice of Dividend

ration,

1957, have been declared

declared, payable October

were

September

1957.

A

tember 3,

AVENUE

The Board of Directors has

|

N.

dividend of 40 cents per share on the Common

Stock

P.

Exchange.

COMMERCIAL

20,

The Board of Direc¬

Edward

—

60MPANY

York

New

August 28, 1957, a quarterly dividend of
cents per share on the Preferred Stock and

NOTICES
JOHHS-MAWVUH

DIVIDEND NOTICES

Quarterly, dividends payable Septem¬
ber 16 to shareholders of record Sep¬

43%
a

Corporation

-

DIVIDEND

the

UTILITIES COMPANY

Johns-Manville

South

523

at

HELME

W.

Rockefeller Plaza,

On

stockholders

! changes.

CALIFORNIA-PACIFIC

9

dividend

Stock Ex-

[Detroit and Midwest

offices

from

ness

Main

133 South Seventh Street.

pany,

GEORGE

AKRON, Ohio—Nathan L. Mer¬
is conducting a securities busi¬

cur

(Special to The Financial Chronicle)

with F. J.
j spot

MINN.—Jeanjoined the

MINNEAPOLIS,
ette

SALEM,

Chronicle)

(Special to The Financial

DIVIDEND NOTICES

(Special to The Financial Chronicle)

Mann & Gould Adds

With F. J. Winckler
1

DIVIDEND NOTICES

N. L. Mercur Opens

(Special to The Financial Chronicle)

Chronicle)

(Special to The Financial

43

(935)

Kinnard Adds to Staff

Dempsey-Tegeler

With

(

The Commercial and Financial Chronicle

...

A dividend of

(12V2f)

cents

twelve and one-half
a

share

the out¬

on

Common Stock has been
declared, payable October 1, 1957,
to holders of
record at the close
standing

of

business

The

September

Transfer

mailed

by

11,

1957.

will not be
Checks will be

Books

closed in either case.

The

Chase Manhattan

Bank.

ALLYN DILLARD,
Dated,

August 22,

1957

Secretary

The

44

(936)

Chronicle,..Thursday, August 29, 1957

Commercial and Financial

BUSINESS BUZZ
on...
Behind-the>Scene Interpretations

from the Nation's Capital

f;

-fcX m

i

y^|||

i/U 4

Cr W

A

i*

St.

WASHINTON, D. C. —While

Seaway

Lawrence

Congress has been sending bil¬
lions abroad, it has neglected to
take care of some of the nation's
acutely needed .domestic needs.
All over the country there are

analytical report

Accounting

"Drawbacks" Cited

of

postoffice

and

tion and it would not pay

habilitate them.
In

effort

an

1

j The report on the seaway em¬
bracing the Great Lakes and
Canada's
largest - river,
says,
among

the

Under

which

plan

people at the time thought was
a good solution to the problem,
private capital was invited to
put up the money to finance the
buildings.
The
Government
buildings

the

lease

would

Interest rate

"like paying rent."
was

fixed at 4%.

I Congress' approved
offices at

a

j
i

have been

but only one building, a
$2,000,000 structure at Rock Is¬
land, 111., has- been built.

let,

companies and oth¬

Insurance

have not been interested in

ers

for years
under inflationary conditions
that could get a lot worse before
they get better.
tieing

up

their

money

Earlier in the

year,

OS A de¬

railed the program by suspend¬

ing

construction
in

potential
"inflationary

any

until

pressures

construction

the

re¬

Since the suspension and

cede."

the

industry

subsequent

costs

construction

order,

resume

risen

have

they threaten to rise more
with
the
increase
in
freight
and

rates

and

the

higher labor costs in

While

fie1 d.
on the

materials

building

technically

back

track the program has not made
any

noticeable progress.

Appropriation Doubtful
As

result,

a

direct appropri¬

a

bill to replace lease-pur¬
chase has been introduced in
ation

the

It

House.

would

authorize

appropriations to cover the
costs of the congressionally-ap¬
proved buildings from New
Hampshire to New Mexico. The
authorization
over

will

measure

go

until Congress returns next

January.

..."

.

an

authorize

appropriation of $1.5 billion

The

Department projects.

Lease-Purchase

Act

extend its life until

the

only

any

action

How¬

1960.

Public

011

it.

Never¬

theless, GSA still has authority
to go

from

a

an

ahead and let contracts

the 97 projects approved

cities

However,

on

under

Chicago,

like

i

half-million

miles.

It sends

the

more

square

water into

than any other river

ocean

the Amazon.
Although
navigation is the most import¬
ant part of the project, develop¬
ment of hydroelectric power for
except

vital part of the pro¬

a

posed development program.

gress "economy minded" it will

has

created

h"ge

through nfcxt

r--

nriation

year.




bill

mittee, flatly denies charges of
Mid-western Congressmen

that

port

organization he heads is

an

seeking to cripple the Seaway.
The

organization,

Committee

the

for

Na¬

import

and

Lawrence-Great

Seaway, wants the
tolls put so high they would
hamstring the entire develop¬
ment program, if not ruin it.
In reply, Rep. Fallon said the
the organization wants the tolls
set high enough to pay for the
waterway operation with ou.tr
subsidizing it.
By terms of the authorization
for the

Seaway, Congress auth¬

million

27

50-vear

levied
way.

is

in U.

feet

be

would

sum

S. waters.

period

off

The

big

The

over

through

ships using the

011

over

as

paid

dispute

a

tolls

ment

of

increase of 2n%,

the

onetime

New

lev^to fi¬
It has hired
port
director of

special

a

Orleans

and

Norfolk, Va.,
as
general manager.
Toledo
hopes to obtain Federal funds
to improve its harbor and make
it a major cargo shipping center
by dredging its 16-mile long
tional

river channel
feet

two

depth

same

to

an

addi¬

27

feet, the
provided for the

1955,*. Indications are that
rival 1956.
Develop¬
natural

Latin America

resources

and

Canada

in

Latin

and

America

European manufacturers

lying

more on

supply

exports

1955

to

Lawvence

Seaway

New

England

few

a

according to the

Reserve: Bank

of

Bos¬

tatoes and

newsprint.

$730 million
was

it

will

pleted

earlier

Whether

or

a

be

not

than

The

railroads

adopted

a

business

With R. B. Sideckas

J.

Nelligan

Co.,

North

47

Avenue.

Mass.
has

are

Rep.

H.

: '

&

Quinsigamond

'

;

rities

—

Government

Maryland, ranking Democrat

Juan,
Report

on

Elections

Norbert Muhlen

American Council

Inc., 8

the

Before

Germany
—

San

Rico—paper.

Puerto

on

—

Germany,

West 40th Street,

Suite

18, New York

1901, New York

States

—

Bernard F.

with Kenower,
MacArthur & Co., Ford Building.
now

Joins J. P. Arms

17,

has

been

staff of J.'P. Arms,

New

Avenue.

(paper),

Y.

Wage Relationships

—

900

The Com¬

parative Impact of Market
Power Forces

Relations,

Calif,
World

added

e1 e y 4,

1

(paper).

Survey of Private
and

201

California,

University ' of

22, N. Y.

and

Clark Kerr —

—

Old

Age

625 Madison Avenue,

MINNEAPOLIS, Minn.—Charles
Atkinson

Interna¬

Commerce,

of

Park
N.

United

—

the

Pension

Social In¬

surance—Pension Planning

(Special to The Financial Chronicle)

the

Chamber

103

Plans

L.

of

i California Hall, B e r k

(Special to The Financial Chronicle)

DETROIT, Mich.

Paper

Council

New

Co.,

York

(paper).

to

Incorpo¬

rated, Pillsbury Building.

TRADING MARKETS
Botany Mills
Campbell Co. Com.
fFashion Park
Indian Head Mills
United States Envelop©

A. S.

Morgan Engineering

Carl Marks

National Co.

& P.p. Inc.

FOREIGN SECURITIES
20 BROAD STREET

TELi HANOVER 2-0050

•

SPECIALISTS

NEW YORK 5, N. Y.

TELETYPE NY 1-971

Riyerside Cement
Flagg Utica

LERNER 8 CO.
Securities

10 Post Office Square.

011

Develop¬

ment Bank for Puerto Rico,

Institute of Industrial

Kenower, MacArthur Adds

and

Fallon 1 of

Technology,

Puerto Rico—Quarterly Report to
investors in Puerto Rican secu¬

Investment

George

of

(edition in English-French).

Ed¬
become

seen.

not now

Institute

—

with R. B. Sideckas

connected

1963.

getting.

Wermel—In¬

Pasadena, Calif, (paper), $1.00.

York

(Special to The Financial Chronicle)

wait-and-see attitude.

that they

fornia

Inc.,

is

generally have

T.

dustrial Relations Section, Cali¬

tional

views.]

com¬

Mobile

New

Program Expendi¬

tures—Michael

the "Chroyiicle's" own

great volume of business from
New 'Orleans,

and Welfare

of Commercial

not it will take away

Houston, remains to be

Broadway,

6, N. Y.

pretation from the nation's Capital
and may or riiay not coincide with

ports like New York, Baltimore,
and

61

York

Report

Insurance De¬

(paper), 25£.
[This column is intended to re¬
Uniform Rules for the Collection
flect the "behind the scene" inter¬

scheduled to be opened by 1959.
However,

is

and

Searsgort,, Me., sometimes
handles
large cargo? tonnages,
but it is usually confined to po¬

are re¬

in 1956. Most of the cotton

their

ton.

the United States

raw materials. Cotton
increased
from
$240

million in

holding

only; Boston

areas,,

Federal

this nation's best customers.

Seaway.
St.

as

Wittenberg is

Canada

to

ports

far

foreign

increased demands for machin-

are

Seaway

via Portland is limited to

has

ery.

State

;

SHREWSBURY,

will

program.

Lakes

now offer regular gen¬
eral-cargo shipping, and service

mund

exports
all-time high of

an

$17 billion, an

St.

Portland

looming

In 1956 United States

amounted to

ex¬

the

Sea¬

Exports Continue High

1957

a

As

trade,

develop with the Eastern
Gulf

concerned,

the amount of the tolls.

over

nance

and

Insurance

Probable Future Trends in Health
increased

of the

Because

Non-

a

Subsidized

Port

approved

in

Europe.

Authority, and its citizens? have

a

on request.

New York

bought by manufacturers

some

to

Opposes Subsidy for Project
a

Com¬

Public Works

House

the U. S.
share for deepening the channel

Meanwhile, many thousands
of business people, farmers and
civic leaders along the Great
Lakes and along the St. Law¬
rence east of Montreal, already
a
"seaport," are confident the
Seaway is going to bring greater
prosperity to the region through
lower freight rates, and exports
and imports.
; /. ;

(paper),

partment,
the

orized $140

Region Views Prosperity

Toledo

industry
Institute, 59i
Street, Chicago

New York

Canada and Northeastern united

States is

Book—Handbook

Meat

Principal Statistical Tables From

Mac-

Tavish, is not an evening in the Penny Arcade!"

tional

St. Lawrence River, one
the world's largest, drains

pect to pick up some industrial
With many members of Con¬

important client,

an

"seaports."

Some carriers in the region ex¬

Lpp^p-Purohase.

5, 111.

entertaining

of

idea

■'Our

own.

a

36, N. Y. (cloth), $7.00. J

Reference

East Van Buren

Fallon's

of

York

—American

lutli, Buffalo, Toronto and oth¬
ers
are
planning 011 becoming
The

Harris

for livestock and meat

could

about

E.

Meat

Congressmen from the
Mid-west contend Congressman

Cleveland, Detroit, Toledo, Du-

ex¬

Works
committee let it expire without

taking

House

1

the

Seaway,

Interregional

Company,

•

standpoint, will
inland waterway '
from April to early December.
be

The

pired July 22.
The Senate
adopted a resolution July 3 to
ever,

the

that

in direct funds for 141 GSA and
Postoffice

eight 1

The report leaves the impres¬

sion

and

Economics—Seymour
-McGraw-Hill Book

;

Inc., 330 West 42nd Street, New

depths of 27 feet and
lock and . . . tolls will be
a
comparatively shallow, slow
and expensive route for ocean¬
going ships."
•
-

maumee

The proposal would

■I

many

the

few small buildings

,

months long, and there is a 00ssibility that the Welland Canal
may become -a serious bottle-

transportation

whole scheme is
regarded as a "flop." Plans and
specifications are ready on doz¬
ens of buildings.
Contracts for

International

channel

Program a "Flop"

a

than

more

Inc., 70 Fifth
York 11, N. y,

New

.!•. (cloth), $4.95.

Great
Lakes-St. Lawrence route with

istration,
the
Government's
"housekeeper," began setting
the machinery
in motion for
architectural drawings.

Today

no

"Furthermore,

}

Admin¬

Services

is.

! neck.

post-

98

Avenue,

The shipping

shipping.

ocean

—

Prentice-Hall,

v

the St. Lawrence

provements now underway are
completed, movements via the
seaway
will attract 'unlimited
season

total cost of $766,995,-

General

©94.

5

,

^

;

011

completion and retire the debt

lems

river and interlake channel im-

j

many

once

Solve Management Prob-=
Charles A. Cermai

How to

other things:, "Many as¬

that

sume

replace new postoffices

and other Federal buildings.

Associa¬

,

ties, Congress approved in 1954
the socalled-lease purchase pro¬
gram to

Druggists'

tion, 60 East 42nd Street, New
York 17, N. Y. (paper), $1.50.' !

sachusetts, authored the study..

in growing communi¬

situation

New York

—

Sales, Costs and Profits

on

Wholesale

■

economics at University of Mas¬

the

Non-Accountant*!

Myer

of Service Wholesale Druggists
—25th annual
edition—National

j

.

.

.1

-

alleviate

to

Facts

of its draw¬
backs,. Sargent Russell,„ assist¬
ant
professor of
agricultural
that points up some

to re¬

v

,

S^rqy

LawronP"

St.

for
N.

University Press, Washington
Square, New York 3, N. Y., $5.

released an
of the Inter¬

Agriculture has

national

court
buildings that need lo.be razed
because they are in bad condi¬
outmoded

John

—

Department

The United States

Boston 9, Mass.

Telephone
HUbbard 2-1990

,

.

r

.

,

£

T»ece«QP'
BS 69