The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
ESTABLISHED 1S39
I1NIVc.H»ITY
Y>P MICHIGAN
Th e
Financial
Reg. U. 8. Pst. Office
New York 7,
Number 5452
Volume 182
EDITORIAL
We See It
As
An
Expanding Economy
The session was hardly the "cold
predicted as a result of one
control of Congress and the other in the
House. There was "harmony" of a sort—but
importance.
much
not
more
well
any
serious
session of Congress
regarded as good, bad or indifferent, de¬
pending upon the standards by which it is judged.
There have
been many sessions of Congress,
a
son,
quite
a
Even
as
in
Fall
businessmen
.
be
would
lower
7%
of
industry
of
whole. 3
as a
Estimates
"
and Credit
•
Sf
V.
'' "
National
by
one or
construction
distinguished Presidents of the past
of widely differing political and
social philosophies, yet we venture to suggest that
they would have agreed, vigorously agreed, on a
sales
of
new
James J.
18
Credit
York
New
Mr. Coy
by
of
Croup
at
on
the
are
'
...
negative con¬
regarding the desirability
redeemable currency in the
a
report
were
accepted by
the full Committee, on the
policy statement reproduced below
and adopted by the Board of
Directors on Feb. 4, 1955.
".
In endorsing the results, the Board has placed
bases
22
Meeting of thet Electric Manufac¬
National Association of Credit Men,
of
which the
recommended
.
to
.
<Continued
afforded
Underwriters, dealers and investors in cor¬
picture of issues now registered with the SEC
"Securities in Registration" Section, starting on page 32.
—
complete
a
undertakings in our
Municipal
HAnovek 2-3700
State, Municipal
contains
market
Copy
on
is
CfTABLISHCD
Me«0E.S
OTHER
NEW
YORK
...
8 8 a
REVIEW"
ARE NOW AVAILABLE
Beach
—
HARRIS, UPHAM & C?
OF NEW YORK
EXCHANGES
York 6, N.Y.
Members New York Stock Exchange
120
Bond Dept.
Teletype: NY 1-708
Rye, n. Y.
Net
To
T. L.WATSON &Co.
Active
Dealers,
Maintained
Markets
Banks
and
34
Chase Manhattan
BROADWAY, NEW YORK 5
offices from
coast to
BANK
coast
BONDS & STOCKS
SECURITIES
General
CANADIAN
CANADIAN
Gas Company
COMMON
Members
Commission
New York Stock
Exchange
Stock
Exchange
American
Orders
Canadian Exchanges
Executed
Preferred and
Common Stocks
STREET
NEW YORK 4,
N. Y.
DIRECT
WIRES TO
gctdhwtAt
COMPANY
Dallas
bridgeport
•
perth amboy
Analysis
115
MONTREAL AND TORONTO
NEW YORK
* *
Co.
STOCK EXCHANGE
LA SALLE S%
CHICAGO
1 NORTH
BROADWAY
NEW YORK
Pomciiox Securities
1-2270
Goodbody &
MEMBERS
FIRST
All
upon
request
CANADIAN DEPARTMENT
Industrial Bonds,
BROAD
On
At Regular Rates
Teletype NY
25
DEPARTMENT
k
Brokers
1832
established
BOND
REQUEST
THE
THE FIRST NATIONAL CITY BANK
EXCHANGE
STOCK AND COMMODITY
115 Broadway, New
Miami
I
STOCK
ENERGY
high.
J. R. WlLLISTON & CO.
ANO
N.Y.
too
Bonds and Notes
BOOKLET
"ATOMIC
Request
DEPARTMENT
30 BROAD ST.,
NEW
ON
BANK
BOND
Public Housing Agency
COPIES OF OUR
discussion of whether
a
the
not
CHEMICAL
EXCHANGE
our
INVESTMENT LETTER
or
CORN
issue of
The August
Securities
telephone:
18
and
I). S. Government,
Stale and
on page
'
in
.
Walter E. Spahr
Dr.
"substantiating
a
City.
SECURITIES NOW IN REGISTRATION
securities
standard."
United States and the
of sales
page
coin
clusions
of
.
address
gold bullion standard, and
later consideration of
The subcommittee's
automobiles continue to
Continued
*An
a
gold
a
was
turers
and potential
ported
expenditures for
men
DEALERS
Coy
recommended
is the result of a high level
break records, but
bringing fresh consideration to a
position which sup¬
1948 Association
two industries, although
and
|
Committee which, in turn,
appointed a subcommittee on gold to
which "was delegated the initial job
of
the rec¬
much
phenomenal growth is not accounted
This
$5 billion.
as
of the
currency.
According to the "Foreword," the
Money
in 1953, will be exceeded by as
ord $365 billion, set
Chairman
the
by
made
Association in 1954 created a
indicate the probability that
the United States,
statement
a
and
deemable
.
Gross
the
appraisal"
published in April, 1955. The "forth¬
right position" referred to is en¬
dorsement of
our
system of irre¬
Product, which is the total value of
all goods and service produced in
This list of
porate
is
Credit Committee of the N.A.M., in the
"Foreword" of a pamphlet entitled The Gold Standard
this
improvements by manufacturers and.
'a 5% increase over 1954 on the pjart
different picture emerges.
page
a
critical
recent
were
than last. A very recent survey
by the same company indicates not a
decrease, but an increase of 3% in
the amount to be invested in capital
months,
on
[of Directors] has placed the Association
forthright position on a subject which warranted
"The Board
1.
year
for
Continued
the
Money
Washington, a Hamilton, a
Cleveland, a Theodore Roosevelt, or a
would think of what has taken place on
contains
is
of
That
asks
Jeffer¬
Capitol Hill during the past six or seven
national.....
of
gold in the United States should continue on the present
bases." Dr. Spahr contends there is, in addition to mis¬
statements, a resort to unsupported generalizations.
of readjustment that might
decline
a
noteworthy
more
even
year
<
the statements disapproved
under current conditions, that monetary uses
economy,
still
it, and that is unfortunate. If, however, one
Wilson
proportions.
last
industries
particularly in pre-election years, which were no
more
productive of real statesmanship than the
one that has now just come to a close. This one
will 'accordingly doubtless be accepted by the
rank and file as about what was to be expected of
a
it
a
into
turned
takes issue with statements in a pamphlet of
and Credit Committee of the N.A.M., entitled
holding "it is the best interest of the
is that
pessimistic and a preliminary survey
by McGraw-Hill Publishing Com¬
pany indicated that plant and equip¬
ment expenditure by manufacturing
will be
oneself what
follows
it
have
University
New York
Economics,
"The Gold Standard." Among
year
What makes
that
fact
as
record of
prosperous
output.
session.
Of course, the
for short-term busi¬
probably go down on record as the
in our history in terms of total
The year 1955 will
most
be said to the credit of this
can
the Money
financing. Reveals important aspects of borrowing from
finance companies.
war" that had been
White
Dr. Spahr
loans, stressing the methods of accounts receivable
ness
election year led to great waste of
in seeking to "make a record"
matters which were hardly of first rate
an
of
Professor
situation, and the
for the immediate future. Discusses the types
financing required by the rapid expansion of business
prospects
and analyzes the various resources
Policy
By DR. WALTER E. SPAHK
Mr. Coy reviews the current economic
of
Vice-President
Executive
Economists' NatT Committee on Monetary
Talcott, Inc.
Account Executive, James
time and energy
out' of
Study and
Irredeemable Currency
By JAMES J. COY*
is now on the books. It is hardly a dis¬
tinguished one. It would not have been a dis¬
tinguished one if the President had had his way
in every particular; complete domination of the
situation by the Democratic forces would have
done nothing to lift it above ordinary. The ap¬
gress
Copy
The N.A.M.
Commercial Financing in
The record of the first session of the 84th Con¬
proach cf
Price 40 Cents a
N. Y., Thursday, August 4, 1955
6rporatio7I
40 Exchange
Place, New York 3, N.Y«
IRA HAUPT &
Member« New
and
111
WHltehall 4-8161
Boston
Exchangee
Broadway, N. Y.
WOrth 4-6000
Teletype NY 1-702-3
CO.
York Stock Exchange
other Principal
•
Teletype NY 1-2708
Telephone:
Enterprise 1820
2
The Commercial and Financial Chronicle...
(466)
For Banks,
The Security I
Brokers, Dealers Only
Like Best
A continuous forum in which, each week,
Bausch & Lomb
in the investment and
Central Telephone
different
a
Forum
of experts
group
participate and give their reasons for favoring
Their
Food Mart
they to be regarded,
are
as an
particular security.
a
Guaranty Trust Co.
Rudolph Wurlitzer Co,
Home Insurance
I
like
find
.
.
.
onto if tlie
.
and that's
I
have
Rudolph Wurlitzer C
dolph
New York Hanseatic
Corporation
Teletype NY 1-40
Principal Cities
—
be big.
Earnings
—
with
18 million
versus
in
the
11
cents
share, to $1,400,166 last year,
equal to $1.68 per share.
Wur¬
litzer has paid tne same 20 cent
per
simple
capitalization
of
8 3 3,9 9 0
dividend
quarterly
and
shares of cpm-
the
Annual
since
1950,
for
Report
the
fiscal year
ended March 31, 1955,
Barclay
gave
a
broad hint that an in¬
long-t e r m
crease
is
a
definite
possibility,
debt of $4,000,000, and no bonds or preferred. especially if earnings continue to
improve, as I confidently expect.
It has paid the same 20c quarterly
dividend the past five years, pro¬ The past record indicates that the
stock,
m o n
Specialists in
yield of 51/2 % on a price
of 14 V'i.
Net quick assets after
deducting all debt from net work¬
viding
Rights & Scrip
Since 1917,
a
ing capital equals $14.05, and the
book value is $21.14.
The
the
ence
ffcpOKNELL&fa
Members
Stock Exchange
Stock
Exchange
BROADWAY, NEW YORK S
120
TEL. REctor 2-781S
application of electronic sci¬
to music in all its phases of¬
American Furniture
Company
Alabama-Tennessee Natural
Gas Company
Commonwealth Natural Gas
Company
Dan River Mills
Scott, Horner &
Mason, Inc.
Lynchburg, Va.
Tele. LY 62
A
LD 33
...
Continuing Interest in
tremendous
makes electronic
organs, pianos, automatic record
players (juke boxes), accordions,
and electronic pianos.
Last year
Grinnell
Corp.
Kalamazoo Vegetable
electronics
business
Wurlitzer
for
large staff
of research people—more than 100
specialists in the electronic, me¬
employes
ited
to
60%
of
a
Samuel K. Phillips & Co.
Members Phila.-Balt. Stock
Exchange
Pennsylvania Bldg., Philadelphia
Teletype
PH 375
N.Y. Phone
COrtlandt 7-6814
selling
net
working capital
other
debt
left
an
completely disregarding
at
all for the physical
which in this
book
of
value"
the
depreciated
With
as
result
a
the
of
this
population increasing
estimated
an
55,000
per
of
rapidly
for
musical
the music
is
course,
rate
about
week, it is not hard to
a
Wurlitzer is
Yamaichi
Securities Co.,
Ltd.
Established 1897
Home Office Tokyo—70
Branches
Brokers & Investment Bankers
111
Broadway,N.Y.6 COrtlandt7-5680
a figure of $22.54
I think Wurlitzer is a
really good buy.
LAMBORN & CO., Inc.
RUPERT H. JOHNSON
New York
WALL
STREET
NEW YORK 5, N.
Y.
City
25% increase
The Travelers
99
R. H. Johnson & Co.
Senior Partner:
Insurance
Travelers
Properties
Co.
The
company's main plant at
Tonawanda, New York, is
North
located
500
on
acres
three-quarters of
a
and
million
Insurance
was
established
paid
dividends
in
expanding
instruments.
the largest company
business. Music, of
non-essential,
but
1863
eve«y
has
and
1 8 6 6
square
the
you ever
hath
savage
know
charm
breast."
anyone
to
years.
90
or
the
largest
multiple
line
Wurlitzer
"Carousel"
is
coin-
a
—
company
now
constructing its own fac¬
of
approximately
100,000
square feet, to be completed early
next year.
That plant is being
built specifically for the manu¬
i
company
the
I
Wurlitzer
played like
it
is
a
conventional piano,
o
U
*
than
that of
»,
I
H. Johnson
Rupert
other
In
addition
in
the
surance
in¬
accident, health, casualty, liabil¬
ity, workmen's compensation, and
if desired, listen to his
complishments through
acear
phones, thus making it silent to
others
nearby.
can
total
of
several
1951
1950
new
stores
in
1949
strategic subur¬
1948
1947-
1946™
Export Department
28%
last
year
higher than
year—the
1945
were
more
the
highest
in
pre¬
the
history of the Wurlitzer Company
—and
there
are
now
sales repre¬
sentatives in 43 countries.
The
crease
age
shows
above
a
Travelers
i
CO,
BOSTON 9, MASS.
Telephone Richmond 2-2530
Teletype BS-630
the
in¬
273%
in 10 years or a 27%
increase
i
ZERO COURT STREET,
H0««
$753,566,000
718,366,000
625*573,000
543,965,000
467,118,000
421,621,000
390,379,000
355,519,000
294*911,000
276,043,000
1952
addition
KELLER BROTHERS
premium income.
1954____
.aver¬
per year.
subsidiaries
are
as
follows:
N. Q. B.
OVER-THE-COUNTER ?
INDUSTRIAL STOCK INDEX
The Travelers Indemnity Com¬
Conclusion
Because
large musical instru¬
ment such as a piano or an elec¬
tronic organ is expensive to
move,
families living in apartments are
often
a
reluctant
to
buy, but once
established in a home of
What a boon to they are
with
.small
fry! their own they are ready. The
practice without being huge number of homes that have
cliff-dwellers
of
Buffalo, Chicago, Cin¬
Detroit, New York, and
Philadelphia, and has plans for
the
subsid¬
The
dynamic nature of this
company's growth may be illus¬
trated by the following 10-year
cinnati,
instruments.
can,
through
iaries.
record
our
New Offices
also writes
company
insurance
visit
the
life
its
to
any
When in Boston
C()m_
pany
field.
1 s
bstantially
s u
greater
1
•
DIgby 4-2727
is the
insurance
in
unique in
the field of
It
weighs
only 80 pounds. It is essentially a
practice instrument. The student
musical
Exports—I m ports—Futures
While life in-
1953
vious
It has 64 keys and is
Liquid
n
major part of
its
business,
its
casualty
operates retail music
stores
than
tronic Piano.
—
country.
surance
facture of the Electronic Piano.
Exports
The newest product is an Elec¬
Refined
insurance
who didn't
New Product
—
is
It
feet of floor space. In this plant
is manufactured the revolutionary
Did
like music?
Raw
since
year
has
ban locations.
"Music
.
SUGAR
Com¬
Connecticut,
Hartford,
of
pany
branch
.
They
write
"book
velopments
promotion.
but
potential.
or
get
we
share.
per
Call
case
The company operates in all
48 states and also in Canada.
.
of Japanese
properties,
is vastly more
values.
Even on the
with vision-
investors with knowledge
value
any
have unusual appeal
to investors
deduct all
we
have
and
amount equal to $14.05 per share,
If
iogical.
may
quick" or even below book value.
Maybe this is it! What do I mean
by "net quick"? I mean that from
tory
and the management ex¬
pects important, far-reaching de¬
in
a
taxes,
1954.
JAPANESE
"net
near
rinth, Miss., where the
be the sole music company in the
4s, 1990
Pratt Read Co. Common
with
Park,
Wurlitzer will
Public Service Coordinated
Cambridge Bldg. 4s, 1903
a
growth
fire
soothe
Pocono Hotels Units
after
net
capital
growth stock
a
branch offices
our
SECURITIES
really decent yield of 5^2% while
you're waiting. It's hard to find
The
it!
Leeds & Lippincott Units
of
Bank
subsequent to March 31,
wouldn't life be miserable without
-
has
tronic Piano is presently manu¬
factured in leased facilities at Co¬
market
John B. Stetson Pf<L
National
First
operated phonograph which plays
104 45-RPM records automatically.
chanical, metallurgical, chemicals,
The North Tonawanda plant also
audio, radio, and piano engineer¬
manufactures the Wurlitzer Elec¬
ing fields. For more than 12 years
tronic Organ, and last year built
this department has carried on
and sold more of them than in
research and development proj¬
any year since Wurlitzer entered
ects for the government in elec¬
this field. A steady, solid growth
tronics and other phases of en¬
of this phase of the business is
gineering
dealing
with
secret
confidently expected.
weapons never before dreamed of.
There is another plant at DeMusic!
Music!
Music!
Kalb, 111., where Wurlitzer makes
pianos — and likewise broke all
Disneyland—the fabulous Walt
previous
records
in
production
Disney project at Anaheim, Cali¬
and
sales
last
year.
It is the
fornia, has extended an invitation,
which Wurlitzer has accepted, to largest manufacturer of pianos in
this country. The Wurlitzer Elec¬
represent the music industry in
visualize
Philadelphia 2, Pa.
gov¬
on
accounted
contracts
ernment
at
BOENNING & CO.
the
Chicago, which has provided the
long-term loan, dividends are lim¬
Mobile, Ala.
Direct wires to
company
approximately 20% of sales, down
from 28% in the preceding year.
Parchment
Keyes Fibre Co.
14Y2
.Wurlitzer stock
at
great possibilities for
long-term
basis
with
of
only
are
important companies in
field,
such
as
Hammond,
than
agreement
an
There
believe
I
the
of
the
10
this
distributed in dividends. Un¬
terms
for
New Orleans, La. - Birmingham, Ala.
Baldwin, Wurlitzer, Conn, Steinway, and a few others, so Com¬
petition is not intense.
der
in dividends would be
The
manufacturers
was
sonable to expect,
the Wurlitzer laboratories.
Disneyland Park.
Continental Telephone Co.
management is dividend-minded.
48% of net, after taxes,
Last year,
possibilities for
earnings this year are in excess
further development, and this sub¬
of $2 per share, which seems rea¬
ject has a high priority rating in
fers
the
Trading Markets
that
believes
management
market
NY 1-1557
HAnover 2-0700
largely
greatly expanded
same
or
$89,907
from
period
in 1950, and net
has risen
taxes
recent years
accounts for the
about
Dividends
Members New York Stock Exchange
19 Rector St« New York 6, N. Y.
been built in
these instruments.
past
after
its
yea r,
a
listen to any one of them.
Steiner, Rouse &Co.
Members American Stock Exchange
big
six years, reaching ap¬
proximately 39 million last year
cele-
next
Exchange
have
can
Bought—Sold—Quoted
H.
Johnson, Senior
Partner, R. H. Johnson & Co.,
New York City. (Page 2)
Elec¬
pupils, .all playing at
the teacher can plug
and
in and
Rupert
—
in the hospital
Harold
American
Louisiana Securities
The Travelers Insurance Company
to
Sales have climbed steadily for
Cent ennial
1920
Member
of
classes
the
Wurlit¬
which
Wurlitzer
teachers
once,
par¬
disturbing other patients.
Music
Sales
Company,
zer
the
or
confined
we
brates
120 Broadway, New York 5
New York
o m p a n y—
Barclay, Partner, Bar¬
clay Investment Co., Chicago,
III (Page 2)
nor
the neighbors
use
can
without
Ru¬
the
be,
to
Convalescents
This thing could
the
in
bed
"e lectronics"
—but here
United Utilities
to
has
pretty hard to
Tennessee Gas Transmission
Wires
.
.
Maine Central RR.
Private
that
stock
a
something to grab
going gets rough
Longbell Lumber
WOrth 4-2300
find
to
by
ents.
tronic Piano even
real intrinsic value back of it
Indian Head Mills
Stock
heard
Barclay Investment Co., Chicago, 111.
Harshaw Chemical
intended
are not
offer to sell the securities discussed.)
BARCLAY
HAROLD
American
Alabama &
Selections
Harold
(The articles contained in this forum
Foremost Dairies
Established,
Week's
Participants and
advisory field from all sections of the country
Colorado Interstate Gas
Associate
This
-
'
Thursday, August 4, 1955
pany
does
Travelers
pany
ance
casualty
a
Fire<
business.
Insurance
Com¬
and Charter Oak Fire Insur¬
Company write fire and al¬
lied lines
of insurance.
1954
$141,333,000, and of the two
fire companies $59,685,000.
were
^
on
14
page
•
i
■
i
FOLDER ON
n
-
REQUEST
1
National Quotation Bureau
Incorporated
46 Front Street
Continued
of
35 Industrial Stocks
pre¬
miums of the Indemnity Company
•
14-Year Performance
.
i
New York4,N.Y.
Number 5452
Volume 182
..The Commercial and Financial Chronicle
.
-
(467)
index
Variable Annuities—
Dangerous
able
Currency—Walter E. Spahr
'i
Sakolski calls attention to
Dr.
20th century
Page
and company
The National Association of Manufacturers'
Study and Irredeem¬
By A. M. SAKOLSKI
'
llCHJEIWflU
B. S.
Articles and News
A
of the hottest battles in
one
3
Commercial Financing in
•.
finance, namely, the effort of the Prudential In-:
—James
:
Company of America to have the New Jersey Legisla¬
ture enact three bills which would permit insurance companies in the state to issue so-called "variable annuities," backed by
J.
___Cover
IT'S NOT THE HEAT
Expanding Economy
an
Coy
It's the
Cover
__
humility.
You're stuck with
surance
duds
Variable Annuities—A Dangerous Experiment!
—A.
M.
Sakolski
nobody wants
-—but
3
us
!
.
stocks, and in which income to the recipient of; the
common
"annuity" would
from
Cites
stocks.
common
Brimstone With
Mexican Accent—Ira U.
a
Cobleigh
4
Obsolete Securities Dept.
in accordance wi'h the income obtained
vary
arguments for and
proposal, and concludes passage of the
gerous and even destructive to
against the
4
up
battles
of
in
It's
war, rag-
a
for
-in
one
Grounds for Limiting Scope of Accelerated Tax Amortization
the cries
sheltered
regulatory
in
nuity?"
A.
M. Sakolski
question:
one
third
the
the
on
in
business
and
has
that
enter
caused
until
bound
-
the
entirely
an
annuity,"
unparalleled
an
called
the
something
been
never
a
in
the
the
without
this
Prudential will have its way,
for better
will
or
be
worse,
upon
an
it will be
experiment in
ever,
It
ing
is
government
agents,
in
Brief"__
from
life
Underlying
Bank
of
—
11
;
Montreal's
"Business
that
the
Prudential
an¬
by
life
insurance
for
centuries
is
no
.
a
annuities
dollar
hedge against inflation,
the buying power
based
which
tionary
in Investment Banking
We
See
Bank
and
Business
It
(Editorial)—
Insurance
Man's
flation
sets
variable
provide
in,
the
contract
dollars,
might
but
if
such
de¬
of a
receive
income
"Mr.
Butler's
Devaluation
Denial"
';
Nashville
of
Indications
Mutual
Current
of the
News—Carlise Bargeron____
Business
14
Activity
*Circular
Notes
T___:____
than
Bankers__________
Wilfred
Observations—A.
10
——r-
and
May—
Reporter
5
Our
Reporter's
Governments
on
Public
Utility
40
Exchang* PL N. Y.
Teletype NY 1-1825 & NY 1-1826
Direct Wires
to
Philadelphia • Chicago * Los Angeles
8
Securities
27
Securities
Railroad
Securities
Now
in
•
16
Registration..
Security
Prospective
Salesman's
Securities
The Market
...
WHY
32
Offerings
36
Corner
and You—By
Security I Like
The
State
We
Firmly Believe
27
Wallace Streete
16
Best
Mid-Continent
2
power as
Continued
on
page
York Stock Exchange
TELETYPE N. Y. 1-5
•
Chicago
Schenectady
more
over-the-counter securities
HA 2-0270
25
___
Report.
higher benefits paid
in an inflationary period, accord¬
ing to the Prudential spokesman.
.
250
Singer, Bean
& Mackie, inc.
17
^
Our
Request.
We maintain trading markets in
28
About Banks
Fields, Inc.
on
31
Funds
NSTA:
News
24
of Trade
Washington
and
and Industry
•
•
'"
Glens Falls"
Uranium
4
You
40
Will Become One of the
1
Twice Weekly
Reg. U. S. Patent Office
rOMPANY
COMPANY
Edwards &
c/o
Park
Place,
New
2-9570
Reentered
25,
Publishers
Publishers
York 7, N.
to
nutii
DANA
Top-Ranking Independent
Uranium Producers
at
the
post
of the U. S.
Febru-
matter
at
office
New
under the Act of March 8, 1879.
y
Current
Subscription Rates
i_■ •
..
sftrfrt
President
SEIBERT, President
Thursday, August 4,
Eng¬
C.
Y.
SEIBERT, Editor & Publisher
D.
uuiiitaitt
WILLIAM
E.
Smith.
second-class
as
1942,
9576
„
HERBERT
London,
Copyright 1955 by William B. Dana
Company
CHRONICLE
nt v.
DANA
Gardens,
Drapers'
land,
COMMERCIAL and
FINANCIAL
ST., NEW YORK 4, N. Y..
•
15
Western Oil
From Washington Ahead
The
same
Spencer Trask & Co.
•
Stancan Uranium Corp.
Pacific Uranium Mines Co.
Einzig:
PREFERRED STOCKS
Boston
Standard Uranium Corp,
8
Recommendations..
N_
*
in
Gulf Coast Leaseholds Inc. *
Dealer-Broker
REctor
•
office
City
Corpus Christi Refining Co.
8
25
Albany
branch
Lake
40
Bookshelf
buy¬
ing
Salt
Teletype: NYl-4643
to
24
_^___
fixed
buyer
would tend to have the
24300
wire
Cover
Stocks
Investment
City Stock Exch.
Broadway, New York 4
DIgby 4-4970
„
Coming Events in the Investment Field
iiTT,, t.n
WILLIAM B.
TELEPHONE HAnover
14
Regular Features
As
Lake
Spokane Stock Exchange
14
42
The
New
Members Salt
Sees Infla¬
Dangers Persisting
Published
Members
J. F. REILLY & CO.
13
Bank Letter"
I. B. A. Offers Correspondence Course
traditional
on
Conversely,
sums.
bard at work attempting to obtain
BROAD
by
Review"
reduces
income
fewer
25
Cited
sold
with
of
Opposition to the Bills prevent¬
ed
their
hasty passage in the
spring session of the New Jersey
Legislature but, since the spring
recess,
the Prudential has been
specialized in
Canadian Dollar
011
First National City Bank's "Monthly
the
it feels that the kind of
which
dealer
For many years we
Premium
pushing variable annuities be¬
er
insurance
investment
"units"
of
longer adequate.
A Prudential
spokesman said that the "Variable
Contract" would provide the buy¬
agencies.
of
Factors
same
dpllar
of the units would,
how¬
fluctuate with the fluctua¬
nuities
groups.
have
Official Film
19
in
ways
—
guarantee of the
a
companies
Bitter
criticism of the variable annuity
Bills has been coming from other
major insurance companies, from
investment
banking houses and
brokers, from the mutual fund
organizations, from local and na¬
groups
conventional
other fixed-dollar in¬
or
appears
cause
stirred up such a hornet's
of opposition and question¬
among financial institutions
and
the
tions of the stock market.
a
Seldom has any legislative pro¬
tional
1
Anticipated, According to Chase Manhattan
"Business
company
sends you
month as long as
variable annuities
important ways
value
posal
mest
in Guaranty Trust Co. "Survey"..
company
But
from
number
and untried field.
mew
insurance
of dollars annually for
the variable annuity holder
would get annually a check repre¬
senting the value of a guaranteed
em¬
barking
,
number
The
and,
gates
Holly Corp.
*
life,
year,
opened.
the
earlier
live.
getting
introduced
Prudential
success
com¬
vestments,
but common
stocks,
riding the ups and downs of the
stock market, and (2) instead of
question
may
very
well
come
early in
August.
For if the reconvened
session of the New Jersey State
Legislature looks fondly on three
Bills
the
every
be bonds
to the big
answer
many
so
financial
that
have stirred tempers to the boilring point: (1) the assets "backing
up" variable annuities would not
it.
•
*
Direct
insurance
two
way
the
Prudential
Insurance
•Company of America wants to do
The
an¬
you're ready to retire; then
differ
"variable
which has
before
done
the
of
check
you
financial leaders, is
ruckus among
something
*
13
it?
miums to
break all
tradition
a
"variable
the
Superficially, a "variable an¬
nuity" looks like any conventional
annuity.
You pay annuity pre¬
answer
and untried field?" The thing
mew
Prospects—Walter A. Schmidt
munity?
"What happens
largest company
in the world, decides to
tradition
Corpus Christie
:
Recession, Recovery and the Employment Act of 1946 Discussed
Why
want
sectors
simplest terms, the
centered
is
opposition coming from
companies, as well as Federal and
state regulatory and taxing bodies.
to
Dividend
'
Bank's
does the Pruden¬
Why is it pushing
so hard in the face of such opposi¬
tion, even from within the life
insurance industry,
And why is
tial
trust
companies,
trust departments of
banks, the giant life insurance
is
what
Just
brokers,
to
12
:
Annuity
and
Reduced
Stock
Stable Price Level
vestment
when
the>; basic
built up over
The Nature of the Variable
in-
dealers
Some
taxwhich
the
bankers,
J
Humphrey__-_
public in buying securities.
in¬
—
George
all
measures
vestment
battle
a
—Hon/
Cinerama Productions
11
op¬
the years for the protection of the
institu¬
nation
circumvent
would
in¬
finan¬
cial
Bills'
of the
would
create
security — one
proposals
volves nearlyevery
indicate, off the
see real reason
ponents that the variable annuity
or
^another
who
record, that they
behind
in-
way
tion
Advantages of "Small Businesses"—Roger W. Babson__;__
which
Mustry,
Sabre Uranium
background, too, and
even
more
quietly, has been the
interest of regulatory and taxing
'many
months
^within the life
insurance
9
the
In
the
"quiet
7
1955
authorities
American finance.
'ing
Construction—George Cline Smith
YORK
6
Men, Machines and Electronic Brains—William H. Miernyk__
ures.
D-Day, is
as
NEW
WHitehall 4-6551
our economy.
legislative support for these meas¬
today, with Aug. 8
one of the hottest
the
20th
century in
Shaping
Tangier: A Miami With Arabs—Jacques Coe
Mid-Year Review of
set
WALL STREET,
Telephone:
would be dan-.
measure
99
New Sales Record Ahead for Stores—Malcolm P. McNair
Subscriptions
possessions,
United
Territories
Pan-American
Union,
Domjnion
Qf
Countries;
States,
$55.00
per
$2.00
S.
Other
state
and
rlfv
city.,news,
n~ws
etc
per
Offices:
Chicago 3,
111.
135
etc.).
South
and
per
_
Report Available
Publications
QUotatlon
year.
Record — Monthly,
(Foreign postage extra.>
-
_
.
lhe
La
Salle
St.,
(Telephone STate 2-0613);
^
Qf
share
year.
year.
1
GENERAL INVESTING CORP.
,
Note—°n account of the fluctuations in
)
Worcester "
Other
Bank
537 00
per
in
•
Thursday igeneral news and advertising issue)-and every Monday (complete statistical issue
market quotation
records, corporation news, bank clearings,
Every
price around
of
year;
per
$58.0o
$62.00
U.
Members
and
Canada>
Other
1955
in
exchange
remittances
for
for-
eign subscriptions and advertisements must
be made in New York funds.
80 Wall St., N. Y. 5
BO 9-1600
I
The Commercial and Financial Chronicle
Thursday, August 4, 1955
...
(468)
4
Brimstone With
Mexican Accent
a
By IRA U. COBLEIGH
Enterprise Economist
A look at
of the leading
some
nether world is supposed to
seething with brimstone (sul¬
The
be
of sulphur, and
sources
a
couple
common
3
(1954) split. Continuous cash
been paid on TG
for 1
for us Earth
still a scarce,
wtnr***
dividends have
much sought
phur to you) but
people, sulphur is
Ameri¬
can producers is Freeport Sulphur
with 1954 Frasch output from five
after,
and
quite indis¬
pensable ele¬
When-
ment.
e
r
e
v
strike
you
match,
fumigate a
house,
poison
a
cock roach,
ride
a
in
buy
read
a
a
car,
tire,
news¬
a
since 1921.
Second in the echelon of
around
of
domes
2,100,000
tons
earnings of $4.20 on each of
2,400,000
common
shares.
and
the
dividend payments go
1927, the 1954 declaration
being $2.50.
Regular
back to
domestic
smaller
and
Other
producers
are
Jefferson
Lake
Sulphur &
Duval
and
Sulphur
Potash.
bat a
tennis ball,
paint
your
house, fertilize
your garden,
U. Cobleigh
build
a
bridge, or stockpile an
bomb, you are paying tribute
sulphur, an indispensable in¬
gredient of all of these. There are
65 pounds of sulphur in every ton
atom
to
of rubber, and 38
for
each
pounds required
newsprint paper.
of
ton
Having made appropriate refer¬
to the two leading U. S. pro¬
ence
our
south
production, we now swing
of the border to pick up
assignment
our
tial
unpronounceable
Tehuantepec.
of around $31 a ton;
three brothers named
Where
are
this
about
it
does
came
We'll
eyes
of
Brady, from
had
try to cover all
First, sulphur is found quite substantial stock holding in this
widely, but commercial extraction venture led to their second dis¬
from two main sources:
pyrites which
are
(1)
covery,
costly to process,
the Jaltipan Dome, back¬
Sulphur
ground for Pan American
and
(2) salt domes where the ele¬ Co.; and latterly to the Mezquital
ment
may
be extracted at low Dome from whence arose Gulf
cost by the Frasch method. Pyrites
Sulphur
Corp.
A
triple play,
are
found
in
many
countries Brady, to Brady, to Brady!
throughout
the
world,
while
We're going to talk about Pan
favorably structured salt domes
American Sulphur Co. first. It has
appear mainly in sections along
the
shores of the Gulf of Mexico.
Only about
probably the largest Mexican con¬
cession
acreage
(over 28,000
one salt dome in ten,
however, has a large and rich acres) and on only 1,230 explored
enough deposit, in suitable geo¬ acres has proved up over 28 mil¬
logic formation for employment of lion tons of sulphur. It will take a
the Frasch process of driving the long time to completely explore
sulphur up to the surface by in¬ the Pan Am concession, but re¬
jection of hot water under pres¬ sults so far clearly indicate that
the
sure.
Jaltipan
Dome
may
rank
Of
the
20
salt
odd
domes
presently producing commercial
grade sulphur, by all means the
largest is the Boling Dome (located
southwest of Houston) which has
already turned out 41 million tons
of
sulphur,
and
is still
going
the major brimstone
posits in the world.
among
Pan
Am
its
has
come
plant
less
a
around 5,300 tons.
world's leading producer,
deliver¬
ing 2,840,000 tons in 1954 (100,000
two
out
and
We
the
key
production,
the
more
efficient
mines require something less than
total, from treating
gas) or around 50% of
U. S. sulphur production for that
year. The profits were good too—
around $10.40 a ton; or $3.05 a
2,000 gallons of hot water per ton,
while others operate commercially
share
teresting since, at Jaltipan, they
tons
of
also
Situated
this
natural
using
ton.
Pan
Isthmus
the
on
(700 miles
of
Tehuantepec
of
Galveston, Texas), and
few miles from the Pan
south
only a
American
is the Mezquital Dome
Gulf Sulphur Corporation. On
much as 7,000 gallons per
The
operating
results at
Am are therefore most in¬
as
Auto Production
and
Industry
J
production was lifted in the period ended on
Wednesday of last week to near-record levels as a slight rise in
output occurred.
The pace of activity
summer
siderably
more
The
which
return
$600,000,000
only
65
of
acres,
concession
Gulf
of
the 7,414 acre
Sulphur Cor¬
in
minute
so
an
far
lor
and augurs
area,
sulphur
larger
re¬
the tract is explored.
The quality and character of the
serves,
as
also suggests an exceed¬
ingly
low
water/sulphur
ratio
(similar to Pan American) once
the
plant
gets
into production
(within 30 days).
deposit
13,
July
of
date
Under
1.955,
Corporation offered
series of con¬
debentures, both ma¬
vertible 5%
turing July 1, 1970. These are the
senior securities of the company.
million issue of Series "A"
is convertible into voting Common
The $3
111/9 dollars
stock at the rate of
Jan. 1, 1963, and at
a
share up to
a
scale-up of higher prices
there¬
issue
of
$1,500,000
is convertible
non-voting common up
after.
The
Series
"B"
"B"
into
Jan.
to
issues
again,
Since
1963 and
thereafter.
were
a
both
the
whether
the vot¬
at 102 V2,
offered
decision for investors was
and for how much
at
more,
ing stock should sell above non¬
voting in the market. (There is
also an issue of 98,300 shares of
preferred,
60c
share
each
con¬
vertible into 2 shares of common.
preferred sells at 20.)
This
with
maturity, and a long range
a
common
stock with a
year
on
interesting potential.
For
example,
if
Gulf
Sulphur can
convert production into net prof¬
it, after taxes and royalties, of
say
$10 a ton, it is within the
of
share net of
Sulphur
to
reason
outline
a
per
perhaps $1.50 on Gulf
in 1957.
The
over-the-cou»ter
common
sells
common
concluding
Some
about
notes
might be in
Sulphur is in short sup¬
the
10,020,000 shares of
announce
that.
,
J. JAY SCHWADRON
organization
as manager
ply, and the present price of $31
a ton is quite attractive even
for
our
trading department.
to near-record levels.
The
crisis in scrap brought top-level buyers,
in Washington this week to wrestle
problem. The question of controls in one form or an¬
other is certain to be brought up.
It will center about further
restrictions on exports to relieve the domestic supply problem
the
with
and
also
will
trade
involve
Broadway, New York 5, N. Y.
Tel. DIgby 9-3550
Direct Private
•
Teletype: NY 1-4127
Wire to Philadelphia
Allies
our
their
and
need
for
this
scrap,
weekly asserts.
The
hassle, states this trade authority, is one of three
The other two are
disgruntled customers and maintenance.
1 "
<
scrap
major problems besetting the steel industry.
Blast
the
furnaces,
effect
strike
of
has
contributed
lorced to take
of
schedule.
of
failure
hearths and rolling mills are showing
of wear and tear. The recent steel
open
months
long
the
to
One large producer was
months ahead
hearths is reflected in the
schedules, "The Iron Age"
problem.
blast furnace out-of-production two
a
The
mills
mortality
to
meet
on
open
production
concludes.
the automotive industry
In
in the week ended July 30, heat
losses, wildcat strikes and changeover operations cut into United
States car and truck manufacture, but production was expected
to fall less than 12% under the all-time weekly peak of 216,629
and
cars
the
in
trucks
Automotive
Approximately
July
during
for
164,756
ended
30,
April
"Ward's
1955,
to
a
and 26,835 trucks were built
notes, pushing industry volume
771,000 units of 663,000 cars and
cars
"Ward's"
25-30,
month
the
period
Reports," stated.
record
The totals are up 50% and 42%, respectively,
over the
year ago figures of 441,451 cars and 76,248 trucks and
better the previous high for July of 601,970 cars and 111,073
trucks.
108,000
statistical
The
1950.
agency
estimated
January-July
volume
at
4,921,000 cars and 751,500 trucks, or a 40.6% increase over like
1954 total of 3,400,080 cars and 634,154 trucks and nearly 905,000
units above the
prior record of 3,852,871 cars and 744,834 trucks
during the first seven months of 1953.
set
Most
and
car
suffered
makers
truck
heat
hardest hit were American Motors and Chrysler
due to
Lincoln
the
on
a
plant
was
losses last week;
Corp.
Elsewhere,
virtually out of production
series of recurrent wildcat strikes, while Chrysler and
down all week for changeover. DeSoto joined them
were
inactive
Willys Motors
list.
production will
truck
and
Bend
South
Studebaker's
car
assembly is still down
be halted for three weeks beginning
Monday (Aug. 1).
General Motors
and Ford Motor Co., meantime, were resort¬
ing to six-day schedules the past week to meet demand and pick
up heat losses.
Ford Division had nine car-truck plants pro¬
grammed to work on Saturday (July 30).
Last week's production may have included the completion of
until
reached
not
and truck of the year by a Canadian or United
Saturday last. The same 1954 milestone was
estimated
November.
at
271,931
cars
and
period covering January-July
56,009
trucks, or 39.3%
more
period of 1954 when 219,939 cars and 52,161 trucks
built.
were
tonnages
(They are, of course, de¬
veloping new commercial deposits
of their own.)
The demand for
Steel
guess.
however, has increased
for decades; and it
has been estimated that by 1975
we'll be using twice as much sul¬
sulphur,
as
in
In this event,
1955.
here,
as
Equally it
low
cost
producers.
Pan American and
give
such.
econ¬
that great advantages accrue
the
excellent
promise
Both
Sulphur
Gulf
of
'1
Output Set at 94.4%
of Capacity This Week
production appears headed for a new record. All that's
is for the furnaces to average 90% capacity in the
closing six months,
says
"Steel," the metalworking weekly, the
current week.
They operated at 91.6% and produced 57,194,835 net tons in
first half.
If they do no better than 90% in last half, 1955
the
outmit will come pretty
1953
an
record
of
close to 114,000,000 net tons, topping the
111,609,719 tons by more than 2,000,000, it states.
Right now it certainly looks like the industry is on its way to
outstanding performance. Except for to-be-expected mainte¬
sight to even hint a serious
ahead. Since the strike-in¬
suspensions at end of June, the ingot rate has scored an
impressive recovery. It has climbed 22 percentage points the past
being
nance
problems, there is nothing in
check
elsewhere in
competitive enterprise
omy,
necessary
presumably be room for
obvious
our
Steel
year
a
there will
to
late
Canadian manufacture for the
than in the like
is
120
sellers and Ad-
ministratioiko^ficials together
is
producers. Just what
status of the world leaders
be when large new competi¬
all in this vital field.
EASTERN SECURITIES, INC.
Scrap prices, it adds, have skyrocketed
working weekly this week.
marginal
phur
of
best in his¬
of the
States plant late on
3V2%
has joined our
one
.
the 6,000,000th car
of the element are
unearthed in Mexico is anybody's
pleased to
was
backlog of unfilled orders showed increases in June,
order.
will
are
June
up
the future of sulphur
tive
We
in
A runaway scrap market is giving the steel industry and
Washington much concern, states "The Iron Age," national metal-
around $10, even
before any pro¬
duction has occurred. That would
indicate a considerable optimism
about the long range future here.
Claims for unemployment compensation, it
above
tories and the
truly
realm
factories
States
trucks established in
to offer a rather unusual
a
5% coupon, a 15-
appear
value
some
the employment
the department noted.
these debentures
In either case,
by
rates
$5,800,000,000 from the like 1954 monta, and
May.
Sales totaled $27,400,000,000, an in¬
of $3,800,000,000 from the year-ago month.
Both inven¬
crease
bonds
1,
scale-up
unusually high for the
Department of Commerce stated the
New orders received during the month soared to
of
poration, there have already been
proven 12,700,000 tons of sulphur.
This is a fabulous concentration
production
business
United
week.
current
was
after vacation closings boosted
Manufacturers'
the
lines
some
normal
to
re-opened
level, it was reported.
was noted, declined.
tory,
in
while production in most industries was at con¬
advanced levels than a year ago.
season,
the
on
Business Failures '
Total industrial
$28,300,000,000,
call
along fast.
than
years old, it is now turning
1,750 tons of sulphur a day;
with
very
great efficiency.
With
de¬
already
mentioned
daily output of have
process.
Well
the
This main de¬ Frasch
posit of the Texas Gulf Sulphur, factor in it is the number of gal¬
lons
of hot
water
required to
plus two other operating domes,
Bluff and Spindletop, has main¬ bring
a
ton of sulphur to the
tained Texas Gulf Sulphur as the surface. For example,
in U. S.
with
strong
expanding earning power,
by prospectus two
ducing company today with some
fair sized reserves. Success and
Index
Price
Food
gotten
exploration, pro¬
motion and development, and is
now
ready to deliver to share¬
holders some quite impressive and
Gulf Sulphur
posit which became the basic asset
of Mexican Gulf Sulphur, a pro¬
of these queries.
comes
American has
Pan
Thus
all the way past
bearing. They went to
work and by 1947 had located at
San Cristobal, a commercial de¬
Who
Commodity Price Index
much
strong
a
sulphur
big producers today, and
are
the new producers for
tomorrow?
who
shrewd
called
Trade
Retail
State of Trade
debt,
well
report
Production
Electric Output
Carlcadings
quoted (over
27. There are
including the recent and
sought after issue of $4,621,200 5% debentures convertible
into common at $25.
These con¬
verts sell currently at 118.
Steel
The
1,805,239 shares of common out¬
standing preceded by $9,065,000 of
hunch that these salt domes were
the
who
region
this
Later
the
before
Louisiana,
sulphur?
from?
come
a
Way back In 1904 delvers for
petroleum in Mexico made a field
report on certain salt domes in an
turning out about six mil¬
a year of sulphur in the
United States at a delivered price
what
—
producers in Mexico.
We're
Well
today
for
vignette of the two largest poten¬
lion tons
and we could
use,
at home and abroad, a lot
more
than present production.
83%
ducers, accounting for about
of
fr
property,
paper,
Ira
presently
the counter) around
the
after
outstanding
gallons per ton. Tnis sets the stage
a
very high ratio of profit¬
ability, and, coupled with efficient
storage and ocean shipping facili¬
ties, does much to justify current
enthusiasm
for
Pan
American
for
common,
producers of this widely used chemical element.
of lively new
1.090
actually using less than
are
on
production in the months
duced
Still
month.
cause
of
the
the
furnaces haven't made
strike.
off one-half point
Last
from the pr
up
all ground lost be¬
at 93%,
eding week and two points under
week,
ingot operations stood
Continued
on
vaqe
30
Number 5452
Volume 182
...
sons"
New Sales Record Ahead for Stores
Observations...
By A. WILFRED MAY —
School of Business Administration
therefor,
trend
as
price
as
taches to the
professional
well
as
The year
participant.
This
his attendance at
as
an
sional
men
group
met to discuss ways
United
the
States.
Gross
Our
inexpert in the securities field, the
busi¬
in
ness
typical meeting of an in¬
Composed of profes¬
a
for
high rec-
is going to set new
oras
interested
committee.
vestment
1955 thus far has sur-
year
re-impressed on the
witness, via
forcibly
was
writer this week
National
and means of in¬
Product
is
enlarged fund devoted to a philan¬
purpose. A standard proposal from a
trust company for management, at one-half of
1%, was favorably received. All went well until
running at
an
vesting
thropic
an
annual rate of
Wilfred
A.
May
question of setting the maximum limit of stocks to bonds was
As was to be expected, one of the members was entirely
opposed to the holding of any common stocks as "too speculative
and unsafe."
The futility was pointed out to him of devoting a
counselled fund to gild-edge bonds, with emasculation of yield
from 3 to V-k% by reason of the
counsel fee; as well as the
disadvantage of abandoning the inflation hedge feature of equities.
But our conservative's dour note nevertheless served to throw a
new scare into his colleagues about the "high" market level.
raised.
result
net
uncertainty
this
of
exculpating
the
was
compulsion on both the committee members and the outside pro¬
fessional counsel that at all events the selection of issues should
closely limited to the "good" stocks (the Blue Chips). If any
are to be suffered, the suffering will be mitigated as "legiti¬
mate" and less speculative because of their occurrence in the
be
losses
"good" growth issues—irrespective of price in relation to value
factors.
A 10%
loss in American Telephone will be readily
as to one's
of the market;
whereas the same shrinkage in a non-name issue requires cumber¬
some explanation—again including one's conscience.
excused—both to the other people concerned as
guilt
own
conscience—as
legitimate
a
well
vagary
the Blue Chips will also gov¬
affording a safe haven after
Such emotional concentration on
at
ern
a
reduced
market
levels,
as
break.
So, it is difficult to foresee a
lessening of the name-stock com¬
pulsion, midst either bull or bear markets, on the part of those
many and growing number of investing agencies responsible, for¬
mally
informally, to others for their decisions.
or
*
*
#
❖
FAIR-FOUL WEATHER REVERSALS
In the Bullish
was
premised
more
•
on
than the
New
Twenties—Holding company practice
Era
worth vastly
the credo that the new whole was
In the Doldrum
Forties—Midst the public utility holding com¬
panies' SEC-regulated
dissolution, the whole was deemed to be
worth far less than its dissolving parts.
In the Buoyant
on
pieces of paper are worth more
gained in value by virtue of
than the whole, and that both have
the
division
100
circle of
representing
apparently
than at 80 because
(a stock
a
better value at
of its admittance thereby to the
charmed
split-candidates).
%
*
S:
it
*
pioy tu;
personal
you
postwar period in the way of mer¬
chandise
varieties
and
innova¬
tions
in
display,
close
to
THIS WEEK
WILL BE IN STOCK ISSUES ONLY"
OFFERINGS
—August 1,
1955
of
facilitation
supermar-
automobile
of
_T
all
After
for
$300
Prof. M. P. McNair
vaa>j_
you
the
this
optimism,
some
I am sure will be looking
catch; and frankly, there
is one; namely, the fact that the
s°tt goods business for several
years has been going downhill in
hs .share of the consumer's dollar. The big bulge of postwar
_
,
..
,
But to come back to the department store picture for the Fall
and Christmas season this year,
there is every indication that a
nev^ tiigh record in sales will be
made. Possibly the rate of in-
crease over corresponding periods;
of 1954 will not be so great as it
spending has been for cars, hous- has been during the Spring seaThe rapid pace of this business
ing) an(j har(j goods. In the first son, since the comparisons during
recovery has been accelerated by
hsdf
of this
year,
for instance, the Fall season will be running
the remarkable surge of consumwhile department store sales were against better 1954 figures than,
er
spending.
Department store increasing 6%, sales of automotive during the Spring. Nevertheless,
sales are currently
running 6% products
increased
18%.
Why the momentum of the current
ahead of 1954; whereas last Jan- have apparel and soft goods been surge in business is strong.
Ceruary
most predictions were for jn the doldrums? Not all the rea- tainly a 4% to 5% increase for
no more than a 3% or 4% increase
solls are ciear by any means, but
Christmas business seems conduring the spring season. It is a j'u give you my guess that one of servative.
familiar fact to retailers, however, the big ones is a failure of the
Profitwise the picture will be
that the second half of the year soft goods industries to do as good even more favorable. Gross mar¬
is the one that
really tells the a jQh 0f merchandising as has gin will be improved because of
story. In department stores typi- been done by some of the other lower markdowns, a consequence
cally about 56% or 57% of sales claimants
for'
the
consumer's both of better inventory position
are made in the Fall season; and
dollar.
and of slightly firming prices. In
with respect to profits the conYou know there is an old so- regard to expenses, the effect of
trast is even more striking, with called "economic law," that when
better sales volume will tend to
Fall
season
earnings in dollars neoole's income rises thev tend to pull down the ratio, and likewise
running anywhere from three to
a
praportion than the better methods of expense
five times as great as Spring sea- formeriy on f00cj
anc[ a higher control now in use will begin to
son
earnings. Therefore, a fore- proportion than formerly on ap- make themselves felt,
cast of the Fall season always is parei.
Yet the experience of this
With a higher gross margin per-
smanL
sp°nd
particular interest to retailers.
Is
Slackening Inevitable?
a
of the
Because
advance
half of this year,
rapid tempo of
during the first
observers
slackening of
many
have felt that some
postwar
has
seemingly
period
centage
and
a
somewhat
reverse
^on
0f
has been true: the proporexpenditures
on
food has
improved
earnings
ratio is ap-
plied to the greater sales volume,
expenditures on apparel has de- department store industry to excreased.
Obviously times have pect the highest Fall season dollar
areas
wh^re any slackened busi- changed since this so-called "law" profit of any year since 1950,
activity is indicated for the
prQjp0un(ied, and quite a quite possibly of any year since
and
only
ity
closely.
Automobiles
housing are practically the
wag
defense
drop" in3
government
leveled off,
number of "good economic rea- (he lush period of 1946.
that
has
spending
On the op¬
factor is now neutral.
posite side of the ledger there are
definite
very
of
which
factors,
plus
the
is
million
64
We
are
Add to
already mentioned.
jobs
high¬
er
and are tending to rise, and
that
the
possibility
of serious
labor stoppages for the remainder
of this year has now been sub¬
stantially
minimized,
and
you
have a strong guarantee that con¬
pleased to announce that
this the fact that wages are
OFFICES TO
OUR
25
Broad
Mr. ARNE FUGLESTAD
is associated with
us
in charge
of Underwriting Participations
income will run at an even
sumer
Street
rate in the second half
than in the lirst half of 1955. Next,
higher
NEW YORK 4, N.
Y.
consider
TELEPHONE:
WHITEHALL 4-6500
the
capital
that
fact
goods spending is on the increase;
(unchanged)
and equipment
couple of bil¬
greater during the
will
for plant
probably be
lion
.dollars
outlays
a
ESTABLISHED
& Co.
1332
An
more
even
members
new york stock exchange
bridgeport
iso
connecticut
•
varick
new
american stock exchange
street
york
perth
new
amboy
ventories,
but by
decrease
now
in¬
in
the trend
Affiliated with
BURNS
*A
talk
Head
bv
Prof.
Mills,
McNair
Inc.,
New
In¬
before
York
City If.
•/
S
■!
BURNS BROS. A COMPANY
BROS. & DENTON
Limited-
Limited
■
Members
Members: Investment Dealer's
Toronto Stock Exchange
Ass'n. of Canada
Toronto
jersey
dian
a
has been reversed and inventories
July 28, 1955.
n; ) 4
to
Dlgby 4-3870
New York 5
potent factor is
likely to be the advance in inven¬
tories. A large part of the moder¬
ate business letdown in 1954 was
attributable
Burns Bros. & Denton, inc.
37 Wall Street,
second half of this year.
T. L. Watson
lower
knocked that "law" into a cocked expense percentage, it is clear
hat» because actually in this pe- that percentage .profits before
riod of rising incomes the exact taxes will be up; and when this
Lersn|xaminee 'thi^poSbil- increased and *he Proportion of it is entirely reasonable for the
halt
chief
REMOVAL OF
,
.*•
...
.
some
WE ANNOUNCE THE
/
New Hlgh Records Ahead
of
of
d i sincome is running at a
rate of $267 billion; and consumers are spending at an annual rate
not far below $250 billion.
billion;
posable
promotion,
packaging,
increased
convenience
attractiveness
and
ord for the year
ning at an an¬
rate
what has
consider
will
developed in just this brief
ably chalking up a new high rec-
run¬
nual
any
"good economic
rising. Hence output has to shopping, and so on, and contrast
increase in order to take care of all this with the relative lack of
this inventory rise on top of cur- change in the merchandising and
rent consumption.
;
promotional strategy and techWith increasing consumer in- niques of the soft goods industries,
come and stable prices, consumer
I think you will begin to apprespending in the second half is ciate one of the chief reasons why
bound to enlarge.
Currently the the pattern of consumer spending
Federal
Reserve
studies
show in this postwar period seems to
consumer attitudes on spending to
have been running counter to the
be fully as favorable, if not more so-called
"economic law"; and
so, than at any time during the that is why I have personally been
last
three
years.
Hence every so much interested in the new
piospect is tor substantially
in- approach which is being presentcreased retail merchandise sales ed
to you here today by my
in the second half of 1955, prob- friends of Indian Head Mills,
in¬
is
come
than
factor
these
of
are
ness
SIGNIFICANT HEADLINE OF THE WEEK
"CORPORATE
in
people
business
Mid-Fifties—The Stock-Split craze is founded
the piemise that the divided
e
64
have
million
of
of its parts.
sum
billion;
$3 8 3
we
the
The
If
kets,
prised even the optimists. There
is no longer any doubt that this
that
merchandising
in
potent
more
been
dollar profit since 1950, possibly
season
part I am convinced
promotion
reasons."
since 1946.
amateur
as
highest Fall
show
through a first-hand observation of the psy¬
chological influences governing the investing
decisions of anyone handling other people's
money.
This is true in comparatively high
as well as low market price
periods; and at¬
a
ing, raising proportion of food to apparel buying, in violation
of old "economic law." Expects department store industry to
its likely continuation (if with some counterfluctuations) can be appreciated
well
expenditure
developing; but
to be
differences
number
high employment, rising wages, capital goods spending, and
advance in inventories. Notes new pattern of consumer spend¬
Chip-ism, as evidenced by sharp divergence, based on
value criteria, between the "name" and "non-name" issues, has
shown sensational secular growth in the past.
The motivation
consumer
between the food
field and the soft goods field are
high business tempo. As plus-factors, cites
ening from current
Blue
be adduced for the new
of
seems
my
and
possibiilty of general second-half slack¬
Prof. McNair doubts
BLUE CHIP-IT1S PSYCHOLOGY AT D-J 460
which
the
Professor of Retailing-
Filene
can
pattern
for
By MALCOLM P. McNAIR*
Lincoln
Harvard Graduate
SSS3
5
(469)
The Commercial and Financial Chronicle
August 1,1955
•
Montreal
•
.Winnipeg
•
Ottawa
New
S. E.
from Tangier, the melodramatic
"crossroads of the Eastern
Hemisphere/'
the constructive features
out
of its adequate electric
rule—hence, our
appraisal of Tangier must have a
entitled
be
terms. Lastj tries.
visited Caracas, the
It has
February, we
V
zuela,
en e
city in
a
a
the crossroads of the
Hemisphere — the true
value center of the for¬
and
tant
as
plane—and
people
Madrid
from
By
air,
two hours
the
across
in Africa,
the imagination runs riot. Yet, it
is
closer
than
Moscow, Rio or
Tangier
Stockholm.
is
For
Americans,
only two
a
most important
cf
America
has
sta¬
tion there.
The
this
Legation
is
a
large one—with full staff equip¬
American
ment.
of literary
manna
license.
at
its
peak.
Gangsters
down dark
and
people
short
supposed to sneak
ways, confidence
in the
street
on
merchandise
distribute counterfeit
These are the many myths
bills.
Tangier.
Enough
misinformation
the
Grand
Canyon, with
left »for
space
blades.
view
been
lar dominates in world value vis¬
for
a-vis other currencies.
week
spot on
the northwestern tip of the con¬
most
same
is
probabaly the
over-estimated and, at the
time, most under-estimated
place in the world.
fill
lit¬
very
used
razor
ing for the average reader to ab¬
the
small
has
it might be interest¬
So,
has
Africa
the
six
past
or
of
more
American
an
visiting
at
this
spot
staying a
years,
a
time
ing with friends in their
attending
many of
business and social
and feeling
the
.
.
.
din¬
First,
of
are
to
all
let
the
Bad
us
up
a
list
bad
legion.
be
Things
make
things—and they
Tangier is reputed
notorious
Moroccan
and. Jews),
are
nationals.
European
headquarters for
smuggling of all kinds of contra¬
band, narcotics, precious stones,
find,
other
countries.
States
and
restaurant, visit
dine
at
anybody's home,
Italian
and
number
Americans
500.
around
is
by
provi¬
a
sional
regime, based on the Stat¬
of 1923, which provides for a
Committee
of
the
of
Control,
Consuls
gier,
of
composed
at
career
Tan¬
The
this
Does
good?
this regime.
in
.
.
.
dishonest
.
evil
for
this
make
imported.
in
this
crazy,
more
than
usjual qualifications for mak¬
ing comparisons.
While living six
months of the year in and around
adequate,
operated-
is
power
Buses
daily
somewhere,
suffi¬
is
and
only
.
.
duty
13V2%
difference
mobile
.
and
.
from.
The
everything
on
.
higher
fraction
comes
it
whether it
is
is
other European
phone
and
ample
it is
and
Tele¬
ports.
service
telegraph
adequate.
is
Obviously,
free money market, where
a
can
be exchanged—
most
frequent mode of pay¬
however, is the Spanish
buildings,
population.
it,
It
most
world
if
right down to
come
no
different
today
of the countries
before
World
in the
War I.
Many
most of the countries, at
time, had little if any taxes,
no
currency controls, freedom of
action as to person and personal
wealth,
practically
no
labor
not
that
unions
in all, a happy, un¬
complicated life.
Now that prac¬
is
and
dictatorships comprising
world, outside of Tan¬
hand
bound
are
and
foot
is
.
regarded
with
dis¬
and
pause
reflect.
There
be
born by Jealousy out
are
Envy!
or
During the
dom
climate
Florida,
is
thrives
a
nation gets
play
with
ball
market
of
value
the
change
time
peo¬
true
a
currency.
ex¬
a
the
so-
market, and, event¬
grey
the true and finally ac¬
cepted official market.
Is this
unhealthy?
ually,
Tangier is
times
and
.
goes
certain
in
on
thermometer.
pressure
over
the
health,
qualities,
but
of
It
registers
very
the
beacon
a
Cali¬
its
at
best.
it sel¬
the
that
mand
of
supply
with
or
never
treating with law and order,
is
one
taken
Hardly, if
unaware
ever,
the
by
weather.
Comforts?
comforts that
the
•
•
*
Allentown
Atlantic City
•
Lancaster
cities
Various
All
are
reasonable
available in all
mentioned
hotels
first-class
the
we
service,
stop
earlier.
at
give
including
cellent food, good linen and
„
ex¬
com¬
in
part
at
cocktail
a
general
a
party,
(Special to The Financial Chronicle)
CHICAGO, 111.—Jack L. Wein¬
berg is now with Barclay Invest¬
ment
Tangier.
Here is
certainly
would
safe, and have
two
young
the
roam
.
.
.
not
no
a
par¬
exact quote:
feel
I
With
would
I
would
not
if
CHICAGO, 111.—Kurt Benjamin
has
become
cago Mutual
at
.
associated
witty Chi¬
Investment Co., 8151
Cottage Grove Avenue.
Joins Hornblower & Weeks
(Special to The Financial Chronicle)
CHICAGO,
111.—James
N.
Walmsley
is
now
with
Hornblower
Salle
with
my
!
to
night
approve
.
Chicago Mutual
(Special to The Financial Chronicle)
were
quarter
.general practice of it.
tainly
entirely
concern,
daughters
Arab
that
an
Company, 39 South La Salle
Street.
conversation
ticularly at night, comparing vari¬
ous cities of the world, including
"I
INCORPORATED
Pittsburgh
Barclay Adds to Staff
prominent English nobleman took
While
continu¬
ignored.
early mornings
are cool, the mid-afternoons rea¬
sonably warm — nothing uncom¬
.
has been
in the investment
industry in Chicago since 1947.
Both men belong to The Bond
Club of Chicago, The Street Club
and other financial organizations.
one
and de¬
and
Sanders
Mr.
proclaiming
inexorable
are
be tampered
can
The
laws
here in
ously engaged
trend
the
is
business
Chicago, specializing in municipal
bonds.
of
state
often,
Tangier
recovery.
the
of sick nations all
world,
and,
investment
the
have
most of the time Tangier rather is
blood
30
Since World War II, Mr. Detmer
been continuously active in
gold
its
market /will
prophetic
over
has
barometer. Some¬
no
what
exchange
of
Pictures.
,
again,
and
that
called black market gradually be¬
comes
Boards
American Cement and Paramount
at
restricted
market,
Partners of the firm
the
bureau¬
the
demonstrated
on
other of¬
20
Mid-West and
forced
The
are
arrives
Coast.
tha^
East,
corporations, including Canadian
Petrofina, Carrier Corp., Colonial
Stores,
Combined Locks Paper,
Cuneo Press, McGraw Hill, North
History of the Tangier foreign
has
West
cur¬
monkey with the laws
of demand and supply.
However,
in a matter of days, the Tangiermoney
in
serve
If
who
crats
Chicago
connects
moi"*
the
fices
ail¬
into trouble, its
becomes suspect.
rency
system
with the main office in New York
mar¬
the
on
to all who do not close their eyes
like
summer season,
rains.
tern is consistent.
Scranton
The
1936.
wire
the
fortable—and toward the evening
a coolness sets in again.
The pat¬
*
in
non-existent
are
The Tangier money
usuallv
outstanding
Good Climate
Tangier's
fornia
•
the management of
ex¬
as
ments of the rest of the world.
a
us
Tangier
BANK STOCKS
today.
ket
foreign
well
as
Robert
Chicago office under
Mr. Sturtevant
company's nrivate
its
opened
true
...
regulations, restrictions and
decrees,
this oasis
of
personal
of
tumultuous
market,
practically
ago,
to
you
Tangier is
than
the
change
and
with Jack C. Sturtevant,
of their Chicago
office, 231 South LaSalle Street.'
Founded
in
1915,
the
firm
plentiful—
of the ever¬
care
Detmer
F.
resident manager
Boulevards,
office
houses are
enough to take
John
Sanders have become associate
managers
auto¬
an
toilet water.
or
ple WITHIN its border
peseta.
only one answer.
All
jibes, darts and insults hurled at
9
L.
no
and
can
PHILADELPHIA
that
a
makes
active gold exchange of five years
Let
STROUD & COMPANY
Hemphill, Noyes Go.
CHICAGO, Illinois — Hemphill,
Noyes & Co., members of the
New York Stock Exchange, Mid¬
west Stock Exchange and other
securities
exchanges,
announce
and the price will
.
small
a
than wherever it
that
dain bebause it does not conform.
for comparison of 11 largest Philadelphia Banks
tured
ferries to Gibraltar and Algeciras,
and frequent boats to Marseilles
freedom
PHILADELPHIA
from
every¬
something is manufac¬
If
growing
with
-
Detmer, Sanders With
everything
where.
The
active,
problems * with
ponderous
next door neighbor!
the shops you can buy pretty
In
much
be
one
your
apartment
seaport is
a
has the goo-t
that
and
world
by air include daily
flights to most European capitals.
with
Maintained in all
open
by?
plentiful.
Daily trains
Fez, Rabat and Casablanca.
to
Connections
gier,
Trading Markets
that
little
appreciate the nostalgia
which has passed us
can
a
import
.
Certainly, with this background
cannot be accused of spending
24 yours on a whilrwind tour, and
writing 400 pages on "Inside Tan¬
gier."
have
of
world,
one
are
When
we
be
.
generally at home all
We believe
remains
flat
expensive.
run
is
i
Electric
around.
the
most things must
and
meagre
production
IS
These
.
Is it
untrustworthy?
or
remarkable,
or
carrying it
Agricultural
there
fortune
valuable asset,
which, in other parts of the world
these
last
50
years
has
been
shrinking
into
oblivion
.
:
namely, freedom of though, ac¬
tion,behavior, currency control,
realistic appraisal minus tne dic¬
tators, whoever they may be, and
a chance to exchange
both trivia
ciently important to cheats a de¬
mand, before you can say Mustapha Mohammed, the stores are
ment,
.
The other partici¬
...
Commerce.
city, whic^
people
latory rights in Morocco, are jus¬
ticiable
only in
the American
the
.
participates
<
pating countries are the United
Kingdoim, France, Spain, Italy,
Belgium, Netherlands and Portu¬
gal.
Nationals
of ^the
United
States, which maintains capitu¬
numerous
functions
:.
-
States
of
gold or
in fact, we do
us
paragraphs just grew from a few
because the world at large
seemed to have a completely dis¬
torted view of a perfectly lovely
are
make
Does
mixed-up
United
of
sec¬
a
Chamber
whether
know
Chamber
and the
make
No
passing
equivalent
^iot
to possess
(with
most of the
New York
its
tively high echelon status.
not
legislative
three American
is
Commerce
Go
and
lines,
appointive
an
look,
spoken, all
customs are observed, all styles
are in evidence
truly an active
and interesting mixture, at rela¬
All languages
.
Administration
written in the
are
evaluation.
ond
shop,
any
words
second
a
France, Belgium, Holland,
Switzerland, Italy, Spain, United
land,
to any
Law and order
percentages any
top
that those who have been
deluded by the sensational press
and provocative pulps will take
with, a cultural
diplomats,
bankers,
and artists of Eng¬
of
the
with
hope
and
contact
men
educational
and
is efficient
deportment,
These
pro¬
you.
lics
Send
in
will
its
place in the world.
prom¬
can
melting pot of the world is before
British,
French,
tically all the monarchies, repub¬
Active
you
Here
world
of
all currencies
casas
we
The
claim.
city of
no
big city are
Tangier.
The.,
affairs, so¬
in
political,
vie
something
the
all
burglary,
any
of
and conscientious.
Pot
segment is Spanish,
but there are substantial colonies
taxis
been written about Tangier to
who
of
in
business
remaining 40%, about
are
practically
population of
gross
mention
we
inence
come
largest
but
sorb
tinent
it
that
Melting
Consular Court.
...
to
is
relatively
corners
in shops are reputed to
change you and, for good
measure,
of
are
alley
wait for their prey
to
men
plentiful, and the American dol¬
This
writers
They glorify murder, in¬
trigue, mystery and licentiousness
tle
American
cial,
general
World's
look
Misinformation Prevalent
its powerful
busi¬
own
of
spots
minimum
a
administration
one.
no
nationalities.
finance
up
books have been written
cles and
Tangier
spot—the Voice
black
at
there still
window
through which those who want to
hours.
United States considers
s
The amount of crime,
They
Assembly
-plane to Lisbon and then to Tan¬
gier adds
molest
and
other metropolis!"'
arrests, incidents and all tne other
Tangier
members), and an administration
composed of officials of various
lobbie
Gibraltar.
from
Because
just
—
so
by
dis¬
not
imagine.
four hours from Paris,
water
capital¬
companies
under dummy names in order to
defraud his own country out of
taxes.
Numerous magazine arti¬
setting
on
eign exchange world, and subject
of screen and story melodrama.
Tangier is easily accessible
of
of
—
boat
broker,
streets
but mind their
proper,
ness
segment
147
(Moslems
of the
does
in any
Crime At Minimum
Arabs
quarters.
own
the
roam
alone.
Tangier immediately is suspected
wmm
Jacques Coe
clerstood
money
and
45,000
ute
banker,
financier or even moderately
business man who visits
ist,
misun-
Eastern
informa¬
top secret
wealthy
Tangier—that
place
out
Every
from
most
em¬
femme
worm
few
thousand
words
the
and
in bars, in
tion.
impelled
,
MI-3
nationals
up.
for Piccadilly in London
other popular - thorbughV
any
fare
eats,
population
lives
their
have
square
of
area
a
Portugese.
to
we
to write
and
fatales to capti¬
vate the unsuspecting visitor, and
cent."
ieel
G2
how
About 60%
185,000.
get clear in
us
its functions?
are
an
Tne
ploying
Spanish Ac¬
Now
has
contents of private messages,
grow-
"Texas with
It
miles, with
floating around
and
Now
Tangier adds
exist,
it
tick, what
coun¬
let
how
does
hotels, under the bed,
in the
closet, opening everybody's mail,
bribing cable clerks to reveal
facets
that
cf
MVD
inter¬
esting
i ng
other
a
from
men
reported
the
cn
in
reputation for being
the international spy center, with
of
capital
and
forbidden
is
of all,
minds
our
securiites, gold and anything else
that
Arab
The
First
the world's best.
financial
in
elogues
their trav¬
to
The
drinks
Thursday, August 4, 1955
same
or
adequate.
Iiow It Ticks
Reports administration efficient and conscientious,
TANGIER—"Chronicle" readers
fairness,
of
amount
the
not
are
proportion to. the European
population they are more than
trasts.
Why
should
any
many
particularly when dealing in con¬
transportation, active seaport, good communications,
excellent climate, free money market—an oasis of personal
with law and order vying with
by
reasonable
power,
good
freedom!
year,
week at
a
section
abandoned, and points
distorted views emphasizing intrigue be
1>
that prevalent
urges
There
first-class hostelries, but
in
staying
after
.
well-known
By JACQUES COE
Mr. Coe in first-hand report
so
year
is
fortable furniture.
spent
a time in such
cosmopolitan centers
as
London,
Paris,
Amsterdam,
Geneva, Zurich, Havana, Mexico
City, Los Angeles and San Fran¬
cisco. This is a pretty good cross-
Tangier—A Miami With Arabs
Senior Partner, Jacques Coe & Co., Members N. Y.
the remainder of the
York,
time,
rmarecittt ^nronicie...
una,
fc-c
want
to
say
Weeks,
He
134
was
South La
previously
Mitchell, Hutchins & Co.
With B. C. Morton
(Special to The Financial Chronicle)
BOSTON,
a
but cer¬
&
Street.
Cotton is
&
now
Mass.—Barton
with
B.
Co., 131 State Street.
L.
G. Morton
Volume 182
Number 5452
lion represents a new
However,
awards for non-speculative build¬
above last year,
record 28%
marking the con¬
tinuation
almost
ing of one-family houses (that is,
period
37%
been
Mid-Year Review
ahead
in
set
record
Of 1955 Construction
built
houses
of
order
on
occupancy) also set
By GEORGE CLINE SMITH
the previous
1953.
for
surprisingly high levels in first half of 1955, reveals
a sharp reversal of the downtrend
industrial construction that followed the Korean War; (2)
-of
continued
a
and (4) only
gory,
over
last
in
year
every
Awards
tional buildings.
the
half
first
1955,
of
erated
at
high levels which have
surprised
even
of the more
some
Cur-
servers.
rent
in
-
i
j
-
interest
uation
has
view
re¬
nitudes
not
The
ordinarily
Dr.
for
George C. Smith
publication.
previously announced, Dodge
Reports of construction contract
in
the
totaled
first
37
nearly
in
the
This
for
million
months
ahead
record which
at
dollars
of
set
six
of
states
the
1955.
new
a
months,
previous
established only
Five of the six months
last year.
were
total
first
any
30%
some
eastern
12
six
tremendous
record
was
A
closer look at
Veals
these
the details
re-;
significant trends:
(1) There has been
a
sharp
very
reveasal
of
the
downtrend
in
industrial construction which fol¬
lowed the Korean War, far be¬
yond the expectations of govern¬
ment and private forecasters. The
upturn
this
has
year
been
very
broadlly
based, affecting nearly
major categories of manufac¬
turing.
all
(2)
tial
to
Contracts for
construction
show
all
residen¬
new
have
continued
large increases
preceding
family
struction
went from a
than $14 million last
little
year,
accounted
proportion
for
smaller
a
residential
of
build¬
each
more
to
year
than $63 million this
more
sizable
percentage
petrol¬
refining, printing and pub¬
lishing, textiles,
leather, fabri¬
cated metal products, machinery,
ordnance and petroleum and coal
Other
year.)
increases
in
were
corresponding
any
period
on
record.
which
categories
Every
over
major
category
showed
last year,
of
increases
most of them sub¬
stantial.
(4)
-
the
The smallest increase
first
major
half of
last
category,
ingly,
ings,
in
was
4%.
any
surpris¬
educational
only
ud
in
year
rather
over
The
re¬
last year
were
food, primary non-ferrous
metals,
aircraft,* electrical
ma¬
chinery and equipment, and mis¬
cellaneous
transportation equip¬
ment. ..".
I
totaled
$1,708,756,000, a new record 25%
above the previous record set last
year. Highway construction at $1,125,044,000 was 42% ahead of last
year, for a new record, and all
other categories of public works
except bridges were well ahead of
last year.
of
part
the
residential
•
•
in
Buildings
categories
plants
gas
up
were
and
small
a
:!«
of
only 4% over last year,
but
enough to set a new high
mark. Since all other major cate¬
High
gories increased faster, this repre¬
sents a decline in the relative im¬
portance of educational buildings.
buildings account¬
for'29% of all non-residential
compared with 25%
However, this is still a
very high level, considering that
as
recently as 1946, educational
buildings were 7% of non-resi¬
as
this year.
Continue
Activity to
awards
contract
actual
precede
construc¬
tion, the extremely high levels
reported in the first half of 1955
indicate that construction activity
in the second half of the year
will
that the
year will almost certainly estab¬
lish a new record for construction
remain
high,
very
and
put- in place.
One
of
the
most
striking
fea¬
tures of the situation is the broad
base of the increased
activity, in¬
f
Hospitals
dential.
cluding nearly all classes of resi¬
dential and non-residential build¬
ing and engineering.
Hospital awards at $280 million
represented an increase of 12%
above last year, but were still well
below the peaks set in 1950 and
months,
A further great increase
1955 brought them
indication of
a
down¬
awards were 30%
June, 1954, exactly the
of
as
the increase for the whole
six-month period and far above
in
of May,
the
1955, over
May, 1954.
in
to fourth place
non-residential
increase
13%
con¬
tracts for religious buildings.2
among
recent
in
total
month,
same
Churches
no
been,
underway. In June, the latest
turn
ahead
1951.
has
There
U}
It would
such
buildings,
large
be unwise to expect
exceeded
Commercial
Contract awards for commercial
construction continued their spec¬
For the first time in
tacular rise.
history, these awards totaled over
a billion dollars in the six-month
957,000
manufacturing,
buildings.
by
percentage
firm,
and
educational
2 Does
not
The total of $285 mil*
include
of
as
banking opera¬
private
1933,
all
tions
were
&
Co. merged
Turnure
Co.
&
dealers
and
in securities. On Jan. 1,
1953, T. L.
with Law¬
(Blyth &
Bonner), this organigation hav¬
ing been established in 1832, cur¬
rently making T. L. Watson & Co.
Exchanga
of the oldest Stock
one
houses in Wall
Street.
of T. L. Wat¬
Company's business in the
The rapid growth
&
son
,
necessitated the
and more mod¬
ern
offices. The firm's policy of
being primarily commission brok¬
few
years
to larger
will continue
ers
as
Present partners
&
son
ney,
Co.
heretofore.
in T. L. Wat¬
Louis N.
are
DeVaus-
Bridgeport;
Daniel J. Morgan,
Haviland, Kenneth B. Gor¬
Frost
don, George R.
Payne, Lawrence
Turnure, William T. Veit, Henry
G. Bruns, William C. Farley, Syl¬
vester
F.
Hennessey, Lester E.
Farley, Bridgeport; Quentin Syme
and
John
E.
Judson,
a
Limited
Partner.
Arne
-
Fuglestad With '
Burns Bros. & Denton
Burns
Denton, Inc., 37
&
Bros.
New York City, deal¬
in Canadian stocks and bonds,
Wall Street,
ers
announced Aug.
1 that Arne Fu¬
glestad is now associated with the
firm,
in
charge
of
underwriting
participations. He was formerly
with Carl M. Loeb, Rhoades & Co.
Join J. P. Lewis
MILWAUKEE, Wis.—Duane A.
and William A. Hollistec
Briscoe
have
joined
the
Lewis & Co., 735
mid-1955.
staff of J. P.
North Water St.
the previous record.
year,
Five
the
of
of
categories
six
This advertisement is neither
rnmmprcial construction tabulated
by Dodge increased over last year,
the
only
and
loft
down
little
a
being office
which were
exception
buildings,
than 7%.
more
Biggest
category
half
billion
a
nor a
solicitation of an offer to buy any of these securities.
offering is made only by the Prospectus.
August 2,1955
NEW ISSUES
Pacific Far East Line, Inc.
42%
80,000 Shares
Largest
percentage increase was in restau¬
rant
buildings, up 74%.
Bank
buildings were up more than 52%;
and service stations
garages
offer to sell
more
dollars,
last year's record.
above
store
was
reached
which
buildings,
an
The
rose
•
Cumulative First Preferred Stock ($25 Par Value)
5V4% Convertible Series of 1955
nearly 18%, and commercial ware¬
rose slightly.
Price $25 per
houses
build¬
share
Residential
educa¬
tional
total was huge, however,
amounting to slightly over a bil¬
lion
dollars
for
new
a
all-time
record.
Manufacturing
Late last year, government
veys
indicated
that
plans
for
new
plant
and
equipment expenditures called for
continuation
in
1955 of
cline
which
set
rean
War.
However,
in
year
contract
trial
construction
crease
awards
sharply,
prediction
by
after
*
the
early
this
for
indus¬
to
who
in¬
the
follow
these statistics that the plant and
equipment forecasts would be
vised upward.
re¬
This prediction has
already turned out to be correct.
Awards
for
this
some
year
46%
totaled
ahead
$850,085,000,
of
the
were
awarded in
corre¬
160,000 Shares*
Common Stock ($5
Par Value)
the highest
proportion
ever
recorded
*Of which
during
are
period for which comparable
the
statistics
60,000 shares
outstanding.
*
available.
are
Contract
awards
construction
Price $10 per share
residential
for
totaled
$5,456,730,000
in the first half of 1955. This phe¬
total
nomenal
last
was
37%
year's all-time
ahead of
record.
Copies of the Prospectus may be obtained in any state from
and
of
set
last
a
of
the
totals
by
refer
for
that
to
years
Dodge
46%
in
A. G. Becker & Co.
Incorporated
ahead
had
turn
the
the
all
specified,
37
data
and
eastern
Reports.
in
this
January-June
that
states
an¬
period
all
are
covered
Glore, Forgan & Co.
Elyth & Co., Inc.
frequent repetition, it should
understood
alysis
record
which
year,
1 To avoid
be
new
such of the several Underwriters,
securities in such state.
including the undersigned, as may lawfully offer the
The large increase this year was
primarily accounted for by singlefamily homes built for sale or
rent, which totaled $3,785,082,000
manufacturing
buildings during the first half of
single-family
on
first half of 1955,
the
Ko¬
prompting
those
de¬
the
began
emphasis
which contracts
sur¬
manufactur¬
ers'
a
The
homes, which was pronounced last
year, became even more striking
this year. These houses accounted
for 88% of the dwelling units for
Stone & Webster Securities
Corporation
:
(Special to The Financial Chronicle)
new
was
th9
and
discontinued
firm became brokers
definitely
parochial schools,
which
are
classed under "Educational,"
but does include Sunday School buildings.
•«
of the oldest
houses, for many
one
operated a private banking
business in Bridgeport, Conn.\ In
years
increases
previous years to go on in¬
without some abate¬
ment.
However, there is nothing
in the figures available to date
to indicate that any slackening of
the rate of increase has developed
commercial,
25
at
quarters
record of $1,077,21% ahead of last
The
period.
only
their
of
and .larger,
new
Stock Exchange
removal
:J«
sis
construction
Since
The
last
miscellaneous group.
Contracts for educational build¬
ed
construc¬
established
record
All
1952.
,
ings totaled $1,042,787,000, an in¬
crease
first-half
the
except
;
-
Educational
for
private and public utilities
totaled
$684,772,000,
some
38%
ahead of last year and well above
to
Street, New York City.
Broad
rence
Utilities
awards
members
Co.,
removal
the
office
conditioned
Watson
Contract
&
Watson
of the New York Stock Exchange,
over
than
(3)
construction
total.
ported decreases below
ing in the first half of 1955 than
in
$81 million were still an insig¬
nificant
L.
air
tion of
paper,
products.
five
dormi¬
and
last year, up
Two-family houses were up 4%
last year's low
level, but
eum
The
over
from
building,
t^e
over
with practically
the
emphasis on singlehomes.
Apartment con¬
of
group,
and the primary ferrous
industries, up 331%.
(By
metal
rela¬
a
In New Location
T.
main
Public Works
records, with
341%,
record
levels, May being
only exception.
the
per¬
the
Awards for public works
17%, respectively. Both
a combined
and
new
Last year, such
coincidence,
As
awards
hotels
striking increases were the stone,
clay and glass products group, up
are
released
hundred
chemicals
products, was up 140%.
large categories
showing
largest
Other
statis¬
tics which
ranging into mag¬
several
of
at
total of $131,000,000.
23
of
and allied
of its de-
some
basis
the
on
cent.
available, as a
public service,
tailed
tabulated
last year, some
make
to
base.-
broad
major categories, and no less than
18 of these reported increases over
Dodge
this
in
midyear
.extremely
set
at
manufacturing upturn had
The
are
prompted
W.
awards
energy
the total.1
The
manufacturing contract awards
sit—
Corp.
atomic
huge
an
this
F.
sponding figure for last year and
the highest for any first half since
World War II except 1951, when
swelled
optimistic ob¬
for
tories increased
11%
During
(he construction industry has op¬
remained
tively low ebb in relation to total
<
above
decline
steady
residential construction.
4% increase in construction of educa-
a
since World
building con¬
670%
than
more
!
T. L. Watson & Co.
unbroken
announce
had
apartments
(3)
major cate¬
large increase in residential construction;
larger construction outlays
Religious
•
prevailed ever since
the 1951 peak in this category, and
the total of $370,085,000 was about
7% ahead of last year. However,
:
>
the
halted
tion
significant trends: (1)
growth
of
II.
an
corresponding period of 1946.
which
reached
as
-
are
year.
Building statistician, after stating the construction industry
of
tracts in the first half of this year
record
above last
Awards for apartment construe-
-
War
owner
new
a
25%
approximately
Economist, F. W. Dodge Corporation
7
(471)
The Commercial and Financial Chronicle
...
Union Securities
Corporation
8
Superior District
Lake
issue
Business
of
is
Marvin
Manufacturing \
Electric
& Co.,
Parke,
Davis
Beaver
Canada:
Mid
National
Year
Distilllers—H.
60
Knowles
119 Monona
Letter—Fortnightly review of the Canadian Securi¬
Market—Newling & Co., 65 West 44th Street, New York
36, N. Y.
Energy—Bulletin—Ralph E.
Nuclear
in
Samuel
rities Co., Ltd., Ill
Japanese-U.
Analysis — Nomura
61 Broadway, New York 6, N. Y.
Also
in
the
sions
of
Bank
Outlook,
Ltd.,
and
Rates,
and
analyses
and
of
Chemical
Sumitomo
Electric Power
Tokyo
Modern
"Nomura's
issue
same
Western
particular
Stocks—Comparison
City Bank
and
analysis of 13
Over-the-Counter Index—Folder showing
up-to-date
an
in recent weeks,
reflecting
what
is
com¬
issues has
parison between the listed industrial stocks used in the Dowover-the-counter industrial stocks
the selling in Treasury
used in the National Quotation Bureau
preparing to meet such demands.
Since considerable selling in gov¬
ernments is reportedly out of New
yield
and
market performance over
Quotation Bureau, Inc., 46
N. Y.
,
National
York
4,
Philadelphia
Bank
Averages, both
been
as
to
13-year period —
Street, New
a
Front
Stocks—Comparison
of
largest
11
Price Trend
for Bonds—Analysis—Park,
Street, New York 5, N. Y.
in
the
70 Pine
analysis—Oppenheimer, Van-
same
Corn
Co., 120 Broadway, New York 5, N. Y.
Also
bulletin are data on Colgate Palmolive Com¬
Refining
Products
Company,
Great
Northern
Railway, Merck & Company and Ohio Oil Company.
Industrial
Development
—
Bulletin
—
Industrial
Development office, 12th Avenue and Lome Street, Regina,
Sask.
*
American
Radiator
—
*
has
not
Analysis
—
J.
Broadway, New York 6, N. Y. "
R.
Williston
'
;
&
Co.,
115
•
Ashland Oil—Discussion
will
Mine—Report—L. D. Friedman & Co., Inc., 52
Broadway, New York 4. N. Y.
Boston Insurance
17 Wall
will be in a
position to resume the business of
raising capital needed for financ¬
ing industrial growth.
Co.—Memorandum—Kidder, Peabody & Co.,
Up to this point there has not
anything in the way of de¬
attention
Equipment
Corporation of America—Data—Scherck, Richter
Company, 320 North Fourth Street, St. Louis 2, Mo.
in current issue of "Gleanings"—
Francis I. du Pont & Co., 1 Wall Street, New York 5, N. Y.
Also in the same issue are a list of selected equities in the
lower price range and a list of companies with international
Company of Newark—Analysis—Blair &
Co. Incorporated, 44 Wall
Street, New York 5, N. Y.
General Gas Company—Analysis—Ira Haupt & Co., Ill
with
compensating upward
adjustment of yields.
mulative
there
evidence
hardening
other
in
has
of
been
moderate
areas
of
market. Commercial
money
cu¬
the
paper
yields, along with those
on
rate
to
Co.—Analysis—Laird,
Broadway, New York 5, N. Y.
Land
Bissell
&
rates
on
have been moving up.
This
Meeds,
borrowers
pay
a
rate for
must be
prepared
correspondingly higher
new
money.
American
Horatmr £ecu*ittjes
New
Mr. Miller was
Walston & Co. in
Exchanges.
Stock
with
formerly
Wm.
re¬
Dempsey to Be
L.
Dempsey, a director
of Merck
already had
establishsd the pattern, would have
been doing no end of wailing as
American
Telephone
&
Tele¬
Co., Inc., and President of its
Sharp & Dohme Division, will be¬
come a general partner of the in¬
vestment banking firm of Drexel
graph Co., registered for its rec¬
ord-breaking issue of $650 mil¬
& Co.,
fact
that
lions
of
precedent
debentures.
new
there will be no
"standby" busi¬
past,
underwriting,
ness
For
largest
the
in
as
for the
1500 Walnut Street, mem¬
New York Stock Ex¬
bers of the
change,
undertaking
in
corporates history involves pre¬
emptive "rights" of stockholders
since it will be convertible. But,
This
&
or
Sept. 1, it is reported.
years
he has also
of the Penn¬
on
some
served as a director
for
Company
sylvania
Banking
Fund Society
of Germantown, and The Fire As¬
sociation of Philadelphia.
and
Trusts, Saving
bankers.
has leased one of
The company
the old Wanamaker buildings and
COMING
is setting up, facili¬
ties for handling the business it¬
EVENTS
has set up, or
But firms that
self.
"rights"
involved
the
a
spe¬
The
head
of
one
reportedly, has now
decided to put off his vacation for
firm,
the duration.
Aug.
•
firms'
their
the
staffs
having
they
ing at Park Hill County
National
completed
are
looks
like
a
slow
In¬
Security Traders Aaao-
Sept 18-17
(Chicago, HL)
Association
Investment Bankers
now
Fall meeting of
Board of Gov¬
ernors.
process
at the moment.
Club.
(MackSnao
ciation annual convention.
waiting around for this to happen.
it
(Denver, Colo.)
1955
Bond Club annual out-
Sept. 11-14, 1955
land, Mich.)
bulk of underwriting
vacations,
18-19,
Denver
-
Single Operation
With
Field
buying
avalanche.
such
Investment
In
and
selling
or
"warrants" such as
here, are preparing for
of
cialty
make
Sept. 16, 1955 (Philadelphia, Pa.)
Bond Club of Philadelphia 30th
DEPENDABLE MARKETS;
ington, Pa.
Sept 21-23, 1955
Machinery
Angeles
of the Los
search department.
charge
PHILADELPHIA, Pa.—William
for the
.
For Cao:tal Gains—
associated
640
Spring Street, members of
York and Los Angeles
South
the
Baleful Eyes
But
Moreover, the commercial loans
become
Partner in Drexel
Investment bankers, but
collateral
bills, and
loans
has
with William R. Staats & Co.,
funds.
bank¬
trend naturally means that corpo¬
Broad¬
New York 6, N. Y.
County
120
governments
backing steadily down¬
ers'
operations.
Firemen's Insurance
way,
credit policy
firmer
Meanwhile
Ferro Corporation—Analysis
to
been
off what has
transpiring in the Treasury secu¬
rities
market.
In
keeping with
the
Federal
Reserve's
mildly
have been
Street, New York 5, N. Y.
enough
important
velopment
ward
Kern
reorienta¬
pretty much
completed by the end of the sum¬
mer
lull and that
bankers and
take
Also in the current issue of the Report
brief discussion of American Air Filter.
Bonanza Oil &
been
have
Calif.—Leland
ANGELES,
Miller
R.
liquidating to provide mort¬
gage
undergo
Hope now is that the
weeks
subscription.
else,
to
shifting is taken place in a
when
the industry is not over¬
burdened with new business.
been
a
time
good
a
it
has
The
period
in "Ken" published by the Kentucky
Report, Starks Building, Louisville, Ky. — Available with
subscription to "Kentucky Reports" $8.75 for special 26
is
anything
done
chosen
if
market,
potential borrowers
*
banks
been
investment
The
tion
Saskatchewan
of
LOS
England, however, it is probable
insurance
companies have
readjustment of its position.
&
den Broeck
pany,
Inc.,
Ryan,
account
the
for
(Special to The Financial Chronicle)
r
that
Phila¬
delphia Banks—Stroud & Company, Incorporated, 123 South
Broad Street, Philadelphia 9, Pa.
Public Utility Companies—Brief
with some
Leland Miller With
looked up as an
Jones Averages and the 35
pros¬
ranging to
tentatively
spilling over into November.
early start of fall
borrowings by business. And cur¬
rent indications are that much of
City Bank stocks for the second quarter of 1955—
Laird, Bissell & Meads, 120 Broadway, New York 5, N. Y.
other
scheduled for October
banks,
been
have
New York
the
of
bulk
The
William R. Staals Go.
the
of
million
$200
pects, some of these
good-sized issues, are
South La Salle Street, Chicago 4, 111.
McKinnon, 11 Wall Street, New York 5, N. Y.
Acceptance
of 20-year
Motors
General
debentures.
Co.—Memorandum—Cruttenden & Co., 209
Bradshaw
Warren
of
way
Corp.'s
ization, 100 Broadway, New York 5, N. Y.
Department
the
side
Corporation—Bulletin—de Witt Conklin Organ¬
S. Vitamin
U.
Co., Ltd.
reference to
Stores Co.,
Supply Co. and F. W. Woolworth Company.
Auto
in
little
nourishment out¬
current month offers
of the
Royal Bank Building, Toronto, Canada.
and
Mitsui Chemical Industry Co.,
Ltd., Tokyo Gas Co., Ltd.,
Co.,
Department Stores, May
—Thomson &
New York
discus¬
are
Results and
analysis of Business
Merchandising—Survey with
Federated
Beacon"
Investors
considered the balance
things
all
M. S. He-
Broadway, New York 4, N. Y.
Sprague Engineering Corp.—Report—William R. Staats & Co.,
640 South Spring Street, Los Angeles 14, Calif.
Standard
Railway Equipment—Memorandum—Illinois
Com¬
pany, 231 South La Salle Street, Chicago 4, 111.
Union Gas Company of Canada, Ltd.—Review—J3mes Rich¬
ardson & Sons, 173 East Portage Avenue, Winnipeg, Canada,
—
been
have
may
refunding
opera¬
tions will be inclined to take an¬
other look at the situation.
But
garty & Associates, Inc., 52
Japan—Circular—Yamaichi Secu¬
Conventions
N. Y.
5,
which
contemplating
Hickey,
Also available is an
Manufacturing Corporation—Brochure—D.
Shellar
&
Broadway, New York 7, N. Y.
Taxation
S.
Securities Co., Ltd.,
Certainly it is likely that corpo¬
rations
analysis of New York Central.
Co., 115 Broadway, New York 6, N. Y.
Investment Opportunities in
possible that some prospects
may be disposed to change their
plans somewhat. ...
.
is
Mas^.
New York
Street,
undergoing it
which the market is
Francisco Railway—Analysis—Vilas &
San
Wall
49
ties
Investing
Louis
St.
potential
growing
a
backlog of new material building.
But in view of the overhauling
Co., 10 Port
&
views—Lerner
is
There
Petroleum—Memorandum—Bell & Farrell, Inc.,
Avenue, Madison 3, Wis.
Dutch
Royal
Co.,
&
Co.—New
Cement
Square, Boston 9,
Building Up
Backlog
Airways—Data—Bruns, Nordeman & Co.,
Riverside
Co.,
Ltd., 25 Adelaide Street, West, Toronto 1, Ont., Canada,
Canadian
copy)—John H.
per
Raytheon—Analysis—Boettcher and Company, 105 East Pikes
Peak Avenue, Colorado Springs, Colo.
Also available is
analysis of United Biscuit Company of America.
Office
Review—Bulletin—Ross,
($2.00
the customary run
&
Hentz
for next week,
Street, New York 5, N. Y. Also in the same belletin
data on Consolidated Natural Gas and Glen Alden.
are
Street, New York 4, N. Y.
and
Beyond that the calendar is nil
that is aside from
of smaller po¬
tential offerings most equities.
C.
Frank
Harvester,
International
on
—
52 Wall
Co., Inc., 1033 Thirtieth Street, N. W., Wash¬
Chips Slightly Faded—Data
Inc.—Bulletin
Pan American World
ington 7, D. C.
Blue
Analysis
Co., 63 Wall Street, New York 5, N. Y.
Lewis &
Atomic Reactor Diagram in four colors with portfolio informa¬
tion on Atomic Fund as of June 30, 1955—Atomic Develop¬
ment Securities
—
Wall Street, New York 5, N. Y.
& Co., 64
Airlines,
Northeast
Review—New booklet—Harris, Upham
New York 5, N. Y.
Corporation
Cement
American
Masterson
120 Broadway,
this one.
Street, New York 5, N. Y.
North
that
and
stock
Uranium—Report—General Investing Corp., 80
Continent
Wall
Atomic Energy
its
of its subsidiary,
Philadelphia Dairy Products Co.,
Inc.
Bankers will "standby" on
memoran¬
*
6, N. Y.
Mid
of
Foremost
own preferred
for
Dairies,
Company—Card
Corporation, 111 Broadway, New York
dum—Aetna Securities
its
of
debentures
new
analysis of National Tool Company.
oh
one
piece of business, and that has
limitations involving an offer
Financial
Milwaukee 2, Wis. Also in the same issue
East Mason Street,
promises only
week
Next
Company—Analysis in current
Digest—Loewi & Co., 225
Power
and
August 4, 1955^
Chronicle.. .Thursday,
The Commercial and Financial
(!
(472)
(Denver, Colo.)
Chesapeake Industries
O'SuIlivan
Broker and Dealer
Rubber
ernors.
Material and Consultation
HA
2-
2400
Members: N. Y. Security Dealers Association
74
Trinity Place, New York 6, N. Y.
>
376
61
Country
by
obligation
'
BOwlin;
Head
Green 9-0186
Office
Tokyo
a
cocktail party Sept. 21.
Nov. 16-18 (New York, N. Y.)
Broadway, New York 6, N. Y.
Tel.:
Bankers
the Omaha
Club—to be preceded
annual field day at
Japanese Stocks and Bonds
NY 1-
Investment
Nebraska
on
without
Stock Exchango
of Board of Gov¬
Sept. 22, 1955 (Omaha. Neb.)
i,
Troster, Singer & Co.
of
Firms meeting
Association
N.A.S.D.
Member
DEMPSEY-TEGELER & CO.
Association
of
Firms meeting
ernors.
Stock
Exchange
of Board of Gov¬
Number 5452
Volume 182
...
The Commercial and Financial Chronicle
9
(473)
r*
ate
Director, Bureau of Business and Economic Research,
University, Boston, Mass.
and its
demand for technicians and
"paper work." Sees
The
automatic;
longer
is, no
factory
Al¬
dream of the future.
a
though
a
limited
number
of
"pushbutton" factories are as yet
i n
operation,
;
of
accounts
".
ments in auto¬
mation appear
increas¬
with
tion
the
signed
Dr- w- H- Miernyk
machine,"
by
the
control
Wiener
Massachusetts
Institute
of the
Tech¬
of
nology from the Greek kubernetes
"steersman," is well beyond
the stage of theoretical specula¬
tion. It has already provided in¬
or
with
dustrialists
practical
means
substituting electronic controls
for the human hand and eye and
of
—far
more
important, with com¬
puting machines capable of mak¬
ing simple decisions on the basis
of predetermined choices.
'■
As
is
of
true
all
intellectual
endeavor, control and communication theory did not spring full¬
blown
the brain of any one
from
although Professor Wiener
'has played a leading role in the
development of this science. The
basic principle of automatization
was
discovered by James
Watt
when
he developed
the flyball
governor toward the end of the
18th
century.
This device im¬
person
upon
the
"crude
and
wasteful" steam engine invented
proved
by
Newcomen in 1702, and per¬
the application of
steam
mitted
industrial
to
power
machinery.
to
devices
to
ers
the
and" has
coupled to comput¬
the
on
made
in
cotton
a
phy¬
Maxwell out¬
Clerk
sicist
James
lined
mathematically
princi¬
the
ples of "feedback," which under¬
lie Watt's flyball
governor and
the modern science of cybernetics.
We
have
now
of
examples
which
have
practical
many
complex governors
been given the, more
esoteric name of servomechanisms.
These
devices collect information
about
the output of a
production
at one stage and feed it
-back to an earlier stage permit¬
process
ting self-regulation of the process
and automatic correction
of er¬
example is to be
'.found in many households where
a
thermostat collects information
A simple
rors.
the temperature of a
about
feeds
and
this
which
switches
room
information
start
and
stop
to
a
-•
esses.
ism") whmb to the input
(electri¬
the
of
One
factories
World
second
The
vided
trol
a
was
earliest
built at
IT by
War
War
pro¬
with
sprayed
with
John
end
A.
leaving
be
of
Milling
and
the
be displaced by machines,
we
have been told, but the ma¬
chines still have to be built by
may
Thus while the demand for
men.
labor
may fall in some areas it
increase in others, and total
will
employment will not decline. But
should
we
underestimate
never
the
ingenuity of the1 mathemati¬
cians,
scientists, and
engineers
who are working in the field of
control
and
communication
gineering. They envisage
a
•
-
-
-
•
*
.
•
at
Hock
trains
the
machines.
To
paraphrase
witty Dean Swift:
Machines, the engineers
Will
is
railroad
Island
which
be
now say,
making
"studies" traffic
And
these
will
have
other
And
proceed ad infinitum.
so
The
specialist
in
control
engineering does
merely foresee a proliferation
of automatic machines which in
pleasant
tasks
con¬
of such developments
and those yet to come?
Will we
witness
a
sudden
technological
sequences
displacement of mill and factory
workers? Will there be, in short,
a
"second industrial revolution?"
now
laborers.
handled
He
discarded
button
factories
termediate
While
which
assembly
operations were performed man"
ually to complete the radio re¬
ceiver.
More
recently, an this
country, the Motorola Corporation
has developed a new method of
plating
radio circuits on
prestamped plastic plates using an
simple
few
a
automatic process.
An automatic production
or
one
final
has
consumption.
as
this
of control devices of the future.
example,
approved
a
resolution
urging Congress to investigate the
impact of the pushbutton factory
on
the American economy.
...
formation
they
can
absorb.
•'
Continued ori page 26
is in operation at Arlington,
ginia.
sell nor a solicitation of an offer to buy these securities.
made only by the Prospectus.
Shares
Common Shares
(par value $1.00
Price
$43.92
per
share)
per
Share*
single transactions ot less than 1,000 shares. Prices are scaled
down for single transactions involving greater numbers ot shares.
•Price for
Vir¬
This factory, developed by
the National Bureau of Standards
for the Navy Bureau
of Aeronau¬
tics, produces "modular units" to
gether
plates
by
of
hand.
Small ceramic
"wafers" are automat¬
ically shaped by
passed
on
prints
to
a
a
one
machine, and
second which glues
circuit
assembles
each wafer
on
inspects them.
chine
the
A
third
wafers
LEHMAN BROTHERS
ma¬
in
a
properly-ordered
stack,
and
a
by wires
automatically and sim¬
connects
are
only from such of the several Under"
lawfully offer the securities in such State.
Copies of the Prospectus may be obtained in any State
writers, including the undersigned, as may
them
meth¬ ultaneously soldered to the
separ¬
August 3, 1955.
And
while they have displaced manual
Scudder Fund of Canada Ltd.
line to
turn
yet stated
proposition so bluntly, it is
implicit in theoretical discussions
no
•
manufacture electronic assemblies
in
At present most "automatized"
production
processes
are
only
partly automatic. Most of the ma¬
And if so, will the impact on bur
chines employed can only follow
economy lead to radical social and
the
instructions
given
by
a
economic change?
There is evi¬
The
dence of increasing concern about punched or magnetic tape.
these questions.
Delegates to the jobs which such machines can do
1954 convention of the CIO, for are limited by the amount of in¬
250,000
failed
those which
by
conceives
goods for either in¬
sensory
prescribed specifications.
un¬
a hierarchy of automata of an
increasing order of complexity.
These
may
eventually
produce
pushbutton factories to manufac¬
ture equipment for other push¬
automa¬
de¬
component,
a
the
of
will produce
-
and
communication
not
unskilled
What will be the economic
ma¬
chines to guide 'em
This ma¬
chine
is
expected to
eliminate
traffic officers at many intersec¬
tions.
Automatic data-processing
machines are not only speeding
up office procedures, but are re¬
ducing the possibility of error in
Connecticut.
routine operations.
ma¬
chines someday.
ex¬
A small
by computers.
themselves
given situation will perform
highly repetitive and usually
The offer is
•
en¬
day in
which many of the machines will
themselves" be
the
products of
This announcement is neither an offer to
a
pro¬
Men
force.
labor
surplus zinc
were
control;
inspected each
meet
Only
or
workers
estimated 25% without
an
adding to
modified "printed" cir¬
a
human
vices
to
of
ma¬
tically installed and checked. All
these operations proceeded with¬
out
controls
automatic
Union Pacific railroad
pushbutton
freight
North Platte, Nebraska.
Norwalk,
automatic, the
thing
pushbutton factory in the
automobile industry. Certain steps
in the production process, such as
the manufacture of pistons, are
a
duction
a
computer
General
fully
not
a
number
flows, determines traffic patterns,
and
operates signals,
has been
marketed by Eastern Industries of
re¬
Pontiac plant is the nearest:
to
one
of switches for the reclassification
handling
devices to
engines with a mini¬
of human intervention. Al¬
then
provide
to
surface.
Tube sockets
cuit.
of
ex¬
perimenting with the control of
grade crossing gates by closedcircuit television, and the control
-
.
which
I anti-aircraft
The
developed machinery and
though
of
Sar-
abrasive
an
zinc
molten
fourth
War
division
numerous
the
on
employed, but it did increase
One face of the plate was
chine.
theory.
communication
mum
automatic
the
British electronics engin¬
eer, to manufacture small radio
sets.;
The j basic
component/ a
colded plastic plate, was fed into
one
end of a multiple-unit ma-,
powerful impetus to con¬
and
World
World
yard
the manufacture
is a highly automatic
To make its 1955 models
Pontiac
Motors
grove, a
and
city and fuel).
operates
any
would
men
ma¬
widespread or per¬
The auto¬
set up by
Pontiac, for example, did not cut
down
other
of
use
The
ing.
manufacture
replace earlier types of wired as¬
(heat) is transmitted via the
(the
"servomechan-
reliable,
Corporation
materials
~
semblies which had to be put to¬
thermostat
40
steel
produced
sistent unemployment.
matic production line
outside of factories is also increas¬
engines
the
automatic con¬
trol,-but is adaptable to a wide
variety of manufacturing proc¬
completely
thereby raising or lower¬
put
of
vides
ing the temperature.. This is an
example of a closed feedback sys¬
tem".
Information about the out¬
furnace
ler
setup it was found not only pro-r
chines ground off the
was
about
ment
process.
engine which induced rotary mo¬
tion, a prerequisite to its indus¬
use,
direc¬
devices with that stored
magnetic drums. Such a
sensory
conductive
mill in 1785. And in 1868 the
The
can
tion, and these in turn were tied
quired to maintain this output. In
in with "sensors," such as photo¬
the Eberhard foundry, however,
electric cells, thermocouples, and
only six men are needed to oper¬
electric
micrometers, which re¬
ate the control panels and to take
ported back to the computer. The
care of routine maintenance.
computers
were
equipped with
Several
years
ago
the
Ford
magnetic drums to provide them
Motor
Company
installed
an
with a "memory," and with col¬
lators
to
permit comparison of "automatic" production line, and
in the De Soto plant of the Chrys¬
information
received
from
the
The first successful use of a steam
trial
de¬
are
human effort at the rate of
remarkable
yet
There
the
once
grinder
recently
an¬
the Norton Company
Worcester, Massachusetts, which
automatically handles, positions,
and
grinds crankshafts without
than the basic
as
being
cut and loaded onto
are
hand,
of
fully
automatic machine shops, but the
Osborn Manufacturing Company
of Cleveland has recently built, a
completely automatic foundry for
the
Eberhard
Company
which
turns out 60 small iron castings a
minute. Using conventional equip¬
would
provide mechanical
not
are
shells
without
nounced by
flexibility.
Also, the
machine
requires no
of
There
Feedback
flexible.
be
were
a
artillery
,
strut
highly
modern
crankpin
machine tool.
to be
were
is
exhibited
maintenance
more
particular job.
controls
same
largely
In
minute.
'
devices, the
machine
The
was
usually
shapes
operated by
r*0)
are
amples of fully-automatic, singlepurpose
machines ( such as the
be made in less than three hours.
Wartime auto¬
one
automatized
have
named
so
do
to
ii->
of steel,
by
chines.
this machine
When
hours.
30
me
the industrial appli¬
communi¬
But if entire factories
and
Professor Norbert
-
in
con¬
nonferrous
bars
This machine has
on
The
of
processes.
plants
panels
touched
stock is
as raw
and
handful
a
machines.
manufactured
are
chemical
of
control
casting
ordnance
a
on
required
be made
can
than
tend
de¬
refineries
Oil
types
who
increases in productivity and has
examples)
control
operated by
are
automatic
reductions in
production time. Operated man¬
ually, for example, a landing gear
controlled
were
the
to
and tolerances.
strut
certain
men
metals,
effected spectacular
increased
'attention
war
controls
matic
the
in
animal
•
machined
degree
cation and control.
and
code
of
use
by industry..
rather
"read" by vari¬
are
control devices
ous
cation of the theory of
communica¬
of
increas¬
also
numerical
a.
punched tape
was
focused upon
"control
in'
ed
effectiveness
the
And
the science of
•
-
Mathematicians and en¬
gineers made startling improve¬
ments in servomechanisms which,
in the words of Philippe Le Cor-
publications.
Cybernetics,
:
" '
current
plants
indusT
devel¬
oped at M.T.T. is guided by a digi¬
tal computer. Instructions record¬
planes.
After
is
by the technolog¬
displacement of labor.
The
ical
not
the
tinuous
Automatization
fur¬
been disturbed
substitution of machinery for hu¬
man
effort has led to substantial
and
elec¬
ing in the metal-working
tries.
A milling machine
immeasurably.
business
and
•
totally inadequate to
cope with the mass bombing of
Great
Britain
by
high-speed
of anti-aircraft fire
technical
n
as¬
which now re¬
greatest
amount
of
the
k
will
This
economists have not
now
manufacture of engines.
There are many other
,
eyeballs."
ing frequency
i
no
beiller, connected "a hundred-ton
gun turret to a searching radar in
the way the arm of a tennis player
is connected to the motion of his
develop¬
new
and other
Pontiac.
for
Up to
ther reduce labor requirements in
hand labor.
will it lead to Utopia."
were
sets
ciosed-circuit, automatic foun¬
dry
products
quires
-
arise. Concludes "automation will not result in disaster to
ods
phases of electronic
television
tronic
economic
revolution from gradual changes to automation, but calls
attention to some social, political and economic problems that
economic system, nor
other
of
Says
envisage elimination of human labor,
but decreases demand of certain routine labor and increases
our
vices
application to factory production.
automatization does not
may
of
a
n
which developed the Eber¬
hard foundry, is now working on
sembly, the step in the production
the meaning and characteristics of
Miernyk explains
pany,
in
By WILLIAM H. MIERNYK
automation
fully automatic. The Osborn Com¬
tically reduce labor requirements
Electronic Brains
Prcf.
This factory—known
Tinkertoy during its
development phase—is of particu¬
lar significance. Before electronic
assemblies could be produced by
an automatic process their design
had
to
be
radically simplified.
Further developments could dras¬
Men, Machines and
Northeastern
plates.
Project
as
The Commercial and Financial Chronicle...
10
(474)
Scott, Horner & Mason
Notes
NSTA
Harry
Jr.,
Moreland
♦Moreland, Paul I.
Association has received the
National Security Traders
The
following slate of
O'Neil, Richard R.
Charles
♦Parcells, Jr., Charles A.
Richard
♦Pender,
S.
W.
C.
William C,
Jr.,
Jr.,
Hal
K*,:
Hudson
♦Wakeley,
Frank
♦Walker,
Saxton
A.
Asiel
John
Tindall
Harry
J.
Harry J.
Scharff
John J.
Walter &
&
N. Y.
the
sion'
•
and
George J. Elder
Lex
Jolley, The Robinson-Humphrey
Company,
been
concentrate
Government
'full
pleased to report that to date we have over
you
so
now,
can
J. Burke, Jr., May & Gannon,
Vice-President:
Robert
D.
Diehl,
Paine,
Committee,
Webber,
SECURITY TRADERS ASSOCIATION OF NEW
Treasurer:
Detroit.
Straus,
Blosser
*
*
McDowell,
&
*
Robert
W.
waukee;
James
Haack,
Robert
Baird
W.
&
Co., Incorporated, Mil¬
Jackson, First Southwest Company, Dallas;
Maguire, J. B. Maguire & Co., Inc., Boston; John J.
REGISTRATIONS
TION
Beebe,
OF
AUG.
NSTA,
1, FOR
GRAND
22nd
HOTEL,
ANNUAL
CONVEN¬
MACKINAC
prosperity,
ISLAND,
weather
John
S.
A,
•Brooks,
Lee
Homer J.
L.
James
Sachs
&
Co.
New
R.
Staats
Walston
&
York,
& Co.
Los
Co.
San Francisco,
&
Baker,
Simonds
Co.
•Clark,
F.
J.
D.
Carr &
Phillip
J.
George W.
W.
&
Tindall
Stroud
&
Co.
Amos C.
Sudler
Geo.
Cunningham
W.
Roy
&
Co.
Denver,
&
Co.
Joseph McManus &
Co.
•Dunn, Timothy H.
Joseph McManus & Co.
New York, N. Y.
Straus,
Detroit,
•Friedman,
Leonard
Joseph
T,
•Gorey, Walter C.
Greene, Irving A.
Robert
•Haack,
W.
Alfred A.
Hart, Maurice
Hecht,
John
Boettcher
Wrn.
C.
&
Greene
A.
Westheimer &
•Kibbe,
M.
A.
P.
•King, Charles C.,
A. P.
demands
been
more
its critics hasjustified by the
favorable outcome," The Survey
continues.
"It is-to be hoped that
of
than
lowed
to
contract.
movement,
start
a
A
reaction'
'chain
downward
begun,
once
would
culminat¬
in a 'full-blown depression.'
Only prompt and vigorous action
ing
couid
of the law and would alleviate one
of
during welfare of
Wise.
Los
Angeles,
&
Pa.
Cal,
Philadelphia, Pa.
Co.
Detroit,
Kibbe & Co.
Mich.
Salt Lake City, Utah
Co.
Louisville,
Ky.
St. Denis J. Viliere & Co.
New
Chicago, 111.
•Latshaw,
E.
re¬
the
people more money to spend for
consumption.
It must build more
public housing and public works.
It must ease money rates, increase
farm subsidies, expand and liber¬
Arthur M. Krensky & Co.
Long, Martin J.
calm
cordance with the letter and spirit
•Krenan, Arthur J.
•Lee, Jr., Garrett O.
governmental intervention be¬
Business must not be al¬
must
Cincinnati, Ohio
McCarty
Hutton
appeared
for
San Francisco, Cal.
Co.
The Bankers Bond
F.
contraction
spring of 1953, the clamor
Congresses to follow. Such a prec¬
edent
would
be strictly
in ac¬
Mich.
•Krensky, Arthur M.
John
in the
ly embark
large-scale
Mich.
New York, N. Y.
Co.
Baker &
Campbell,
Government's
straint in the face of the extrava¬
&
episode will go some way
toward
establishing a precedent
Co.
i
Orleans, La.
Kansas
City, Mo.
Scott, Horner & Mason
Richmond, Va.
The First Cleveland Corp.
Cleveland, Ohio
future
the
Administrations
gravest threats to
our
and
the
free
en¬
econ¬
omy."
Chicago, 111.
& Co.
Thayer,
John
business
of
the first signs
as
the
Philadelphia,
Tegeler & Co.
•Hudepohl, Harry J.
Frank H.
Co.
Co.
&
•Hudson,
Kemp,
&
York Hanseatic Corp.
Strauss
As soon
Milwaukee,
Co.
Corp.
Harmet
Dempsey,
J. S.
of
of 1946.
catastrophe.
The Government must immediate¬
Mass.
Chicago, 111.
Baird
Boston
A.
Company
they owe to a sane admin¬
istration of the Employment Act
pan Francisco, Cal.
Co.
& Co.
W.
good
Chicago, 111.
Co.
Walter C. Gorey Co.
Robert
their present
of
Detroit, Mich.
McDowell
Parcells &
Fuller &
A.
may
much
how
New York, N. Y.
Blosser &
Smith, Hague, Noble & Co.
New
Houston
Jr.,
New Vice-Presidents
M. E.
Detroit,
Webber, Jackson & Curtis
Charles A.
First
Hardy, Rubin
•Harmet.
Doremus & Co. Elects
choice and
gan.
gant
New York, N. Y.
Boston,
Everham, Edwin M.
1953-54
of
Guaranty Trust
"The
Colo.
Westfield, N. J.
Detroit, Mich.
♦Exiey, Charles E.
recession
The
for
Paine,
•Fuller,
still
again displayed the flexibility and
New York.
Md.
Smith, Hague, Noble & Co.
George J.
economy once
the
Mass.
•Duffy, James R.
Eider,
a
due to the
was
fortune
Denver,' Colo.
F.
"planners,"
Philadelphia, Pa.
& Co.
Co., Inc.
&
Says
prove
Mich.
Detroit, Mich.
Caughlin
Trevor
♦Dedrick, George E.
Delaney,
upon
to successfully
economy
Atlanta, Ga.
Co.
Co.
Edward J.
J.
Edgar A.
Cunningham,
•Carrie,
de¬
who
1953-1954 without employing the
of
to have been an important
chapter in the history of the Em¬
ployment Act, according to the
August issue of "The Guaranty
Survey," monthly publication of
Detroit,
Baltimore,
Watts
ability of nation's
Philadelphia, Pa.
Co.
Boston,
Chesnut,
those
the
a lifetime of saving,"
maladjusted economy
shored up by politically manipu¬
lated monetary props."
and
Cal.
Wichita, Kansas
&
Baker,
Howard
1946."
-
May & Gannon, Inc.
•Christian,
of
YORK
resiliency inherent in a regime of individual
adequate incentive.
Angeles, Cal.
•Burke, Jr., William J.
•Caughlin, Edward J.
Y.
Y.
Seattle, Wash.
•Butler, J. W.
•Carr,
N.
New York, N.
Pacific Northwest Co.
Brooks
O.
Brown, William P.
•Hill,
ciation of the dollar, a further im¬
government's "sane administration of the Employment Act of
City
Higginson Corp.
Wm.
Joseph
War
Goldman,
says
the recession
tools of the "inflationists" and
Firm
Harry L.
Bellizzi,
higher pub¬
supply,
depre¬
a
Guaranty Trust Co. "Survey,"-citing current record-breaking
TO
Name
Bateman.
temporary
Recession, Recovery and the Employment Act
MICHIGAN, SEPTEMBER 11 to 14, 1955
Barker,
Some
Winton A.
B.
Meyers, Jr., Gordon Graves & Co., Inc., New York City; Joseph E.
Smith, Newburger & Co., Philadelphia; and John J. Zollinger, Jr.,
Scharff & Jones, Inc., New Orleans.
•Arnold,
is.
lic debt, a swollen money
immediate or eventual
The
Members of the Nominating Committee presenting the slate
were:
Phillip J. Clark, Amos C. Sudler & Co., Denver, Chairman;
it
At the cost of
cost?
Security Traders Association of New York, will hold its
first annual cocktail party and dinner dance at the Hotel Com¬
modore on Saturday November 19*
Scheduled for October, exact date to be announced, is the
annual beefsteak party.
Elder,
any
even
proceeds of
Pershing & Co.,
120 Brodway, New York 5, N. Y.
Secretary: John M. Hudson, Thayer, Baker & Co., Philadelphia.
J.
at
today,
pend for their livelihood
Curtis, Los Angeles.
George
if
to
recession might have been averted
for the time being.
But at what
poverishment
National Advertising
c/o
Second
employment'
an
holding your orders to send them
on obtaining commercial ads.
Inc., Boston.
Jackson &
acceded
The situation
than
ter
HAROLD B. SMITH, Chairman,
Williarh
had
ous
Orleans, La.
Advertising Committee of the National Security
Inc., Atlanta, Ga.
First Vice-President:
war.
New
thousand dollars gross receipts for advertising in
Year-Book issue of the Chronicle.
We urge all of you who
have
President:
largely in the
the demands of its critics and gone
all out for a program of continu¬
twenty-four
Diehl
more
superficially, could hardly be bet¬
Traders Association is
D.
its
Los Angeles, Cal.
Mrs.
The National
Robert
with
and
strikingly demonstrated or
theory of 'cumulative reces¬
more strongly refuted.
the
AD LIBBING
our
it¬
"What would have happened
City, Utah
Ga.
Chicago, 111.
Hurry
Inc.
Jones,
rooted
price?
♦Mr.
of
in
more
Mo.
Salt Lake
new
demands of peace rather than
York, N. Y.
Atlanta,
Co.
&
Wilson & Co.
Bingham,
William J.
Jr.,
W.
cur¬
freedom
its confidence
strengthened,
cause
Philadelphia, Pa.
Whitney & Co.
J.
♦Zollinger,
New
rec¬
Never has the inherent recupera¬
tive power of free enterprise been
York, N. Y.
St. Louis,
Co.
&
Lilley & Co.
Frank M.'
♦Zimmerman,
New
Joseph McManus & Co.
F.
♦Wilson,
New York,
Co., Inc.
&
one
on
foundation firmer than before be¬
111.
Chicago,
Allyn & Co.
C.
Eugene
♦Willis,
self
its
upon
action, with
Philadelphia, Pa.
Co.
Newhard, Cook & Co.
H.
♦Welsh, Jr., Henry C.
♦Whitney,
restrictions
Detroit, Mich.
Co.
After
vigor, with its
unimpaired, with no
rency
Chicago, 111.
Co.
quickly.
mildest recessions
with renewed
New York. N. Y.
G.
Graham
Wasserman,
Md.
York, N. Y.
New York, N. Y.
San Francisco, Cal.
A.
M.
W.
Richard
»
Fitzgerald <& Co.. Inc.
Thompson
♦Warner,
♦Walsh,
Baltimore,
New
the
ord, the economy moved forward
into a new period of prosperity
Wilson, Johnson & Higgins
♦Tisch, Alfred F.
.
M.
John
Jr.
William J. Burke,
Jolley
Lex
and recovered
of
Mich.
Chicago, 111.
&
&
Newburger
M.
James
facilitated.
Business, instead
slumping progressively into de¬
pression, contracted moderately
of
Mich.
Detroit,
Co.
&
Inc.
Smith, Hague, Noble &
H.
♦Smith, Joseph E.
♦Stewart,
Crouse
Cor
Nuveen
when
produced.
are
but
N. Y.
Cleveland, Ohio
York Hanseatic Corp.
John
♦Sayre, Byron J.
automatically
was essentially what
hoped for and intended.
The
readjustment was not prevented
Angeles, Calif.
Detroit,
Co.
-
Williams & Co:,
T.
New
Frank
Smith,
&
Roggenburg & Co.
♦Roggenburg, Stanley
♦Ronan,
Illinois
The
Rahn, Fred T.
♦Roberts,
Los
Livingston,
R.
created
"The result
York, N. Y.
New
New York,
Co.
Co., Inc.
&
no
was
Philadelphia, Pa.
Parcells
A.
Parsons
Edward E.
Jr.,
♦Parsons,
was
pluftg?rfhto
no
goods and services
Ohio
Cincinnati,
Co.
&
& Co., Inc.
&
is
Detroit, Mich.
Co.
Fairman
Mich.
Detroit, Mich.
York Hanseatic Corp.
New
John
Detroit,
f
Co.
Hutton
E.
Carl Marks
Barney
Nieman,
♦Ohlandt,
&
Janney &
J.
George
Mrs.
Muller,
W.
James F.
♦Morlarty,
officers for 1956:
Co.
there
But
priming,'
deficit
spending, no at¬
tempt to create 'purchasing power'
except the purchasing power that
York, N. Y.
New
Noble & Co.
Smith, Hague,
'pump
heavy
laws
revenue
first
thorough
three-quarters of
in
century.
a
Mich.
Detroit,
Co.
&
Miller
W.
Don
W.
Don
Edward J.
Alto, Cal.
York, N. Y.
Dallas, Texas
&
Gordon Graves
the
overhauling
New
Co.
Southwest
allowed to go into
were
The nation's
given
were
Palo
Co.
Co.
&
McDonald-Moore & Co.
A.
♦Meyers, Jr., John J.
Miller,
Va.
First
♦McCulley, C. Racier
♦Miller,
Richmond,
Asiel
Richard L.
McDonald,
Mason
Horner &
rates
effect.
Va.
J. Earle May &
Earle
J.
Richmond,
Scott,
Mason, Miss Anne E.
Mayer,
tax
Mich.
Detroit,
Simonds & Co.
Baker,
Don
♦Mason, Walter G.
♦May,
City
Firm
Name
Mackenzie,
Thursday, August 4, 1955
Calling attention to the signs of
record-breaking
prosperity that
all sides, "The Survey"
adds,
"The
economy
has once
more
shown the flexibility and
resiliency that are inherent in a
regime of individual choice and
adequate incentive.
In so doing,
appear, on
it
has
confoiftided
and
rebuked
the inflationists and 'planners' for
their lack of faith.
"Probably not many Americans
stopped to ask themselves
have
avert
such
a
of
deficit financing.
It
reduce taxes, especially in¬
upon
a
program
dividual income taxes in the lower
brackets,
in
order
to
leave
alize old-age
pensions and unem¬
benefits,
give
away
goods abroad.
ployment
more
"Instead of
cited
yielding to these ex¬
the Government
demands,
and
the Federal Reserve authori¬
ties
endeavored
dividuals
take
cut
and
to
encourage in¬
private business to
up the slack created by
in spending for national
fense.
eased.
Holderness, Jr.Franklin
Marvin
Franklin
elected
E.
E.
Schaffer
E.
Holderness, Jr.
Schaffer
have
Vice-Presidents
of
and
been
Dore¬
&
mus
Company, 120 Broadway,
City, advertising and
public
relations
firm,
it
was
announced
by
William
H.
Long, Jr., Chairman of the board.
New
-
York
.Mr. Holderness joined Doremus
1949 as an account executive.
in
Prior
to
that
time
he
had
been
chief with the Sam P. Judd
copy
Advertising Company of St. Louis,
Missouri.
Mr.
Schaffer
has
ated with Doremus
executive
since
been
as
1949.
an
associ¬
account
Previously
he had been with the Fred Eldean
Organization
count
as
an
assistant
ac¬
executive.
With New York Hanseatic
(Special to The Financial Chronicle)
BOSTON, Mass.
—
Clayton P.
White has become associated with
New York Hanseatic
Corporation,
84 State Street. He was
formerly
with R. L. Day & Co.
Joins Lloyd Fernald
(Special to The Financial
Chronicle*
BOSTON, Mass.—Fayette O.
White, Jr. is now connected with
the Lloyd D. Fernald & Co., Inc., 1387
Majm Street, members of the Bos¬
de¬
Stock
Money-market policy was ton
Exchange.
He
Scheduled reductions in formerly with Tifft Brothers.
was
U
(475)
Commercial and FinancialThe
Chronicle
Number 5452...
Volume 182
the past 100
family-owned little
businesses to big corporations will
gradually reverse and return to
small specialty factories.
cast that the cycle of
New *oil(Hansealic
Vnrlr
Giitr
York
New
City,
*|ipoiiils Officers
Hanseatic Pnrnnrolinn
Corporation, 19H PrnnA/mir Vr\vlr
120 Broadway, New York
T-Tnncoofin
• / .
By ROGER W. BABSON
appointment of George H. Armstrong and ;
the
announces
jnlages of "Small Businesses"
*+
v
Vice-Presidents.
Arthur C. Turner as
;
Mr. Babson notes
prevalence of absentee ownership, and points
disadvantages to small and young business
out
who
tribute to late DeWiit M. Emery,
aging
to
young persons
if he
were
remain
young man,
an
for
individual, "and not get into
Mass. —I
short vacation at
a
.
sons
my
gradually
Samuel
McManus
F.
'
o
town
it
a
ing
children.
f
is
Also
owed to Ernest Gaunt.
Yet
things
it has
tax
wonderful
all-year c 1 i -
;a,7
him
been
The
.and
Babson
W.
Roger
harbor,
tiful r
of them
to
father had a dry goods
novelty store here 50 years
and
built
has
located
Frank
D. Ohlandt, Jr,
John
Assistant
T.
Ronan
R.
■
also
the
announces
Alfred Lachhein, Philip F. McManus, Samuel B. Milt,
ander W. Moore, Aaron M. Netburn, John D. Ohlandt, Jr.,
van,
Ronan, Theodore R. Young,
York
Alex¬
Frank
were
at
business
an
increased
high, increased industrial produc¬
tivity and resultant competition
should help hold prices down, ac¬
to the current issue of
"Business In Brief," quarterly sur¬
cording
of the Chase Manhattan Bank.
bank's publication expresses
vey
The
nation's
economy is not headed into an¬
other
inflationary
wage,- price
spiral, but tempers its opinion
viewpoint
the
with cautionary
"If
.
we
can
that
the
comments.
keep up the pace
\
„•
of
rising productivity we should be
to
support considerably
industries here
Then an am¬
industrious young man
buy or start a fishing busi¬
or
granite
his
of
of
bound to affect
specific prices.
In
coming months there may be nu¬
merous
examples of
individual
products where higher costs force
prices
up
(particularly capital
goods lines). Yet such price in¬
creases
are
not likely to be so
general
large impact
on
indices."
as to have a
the over-all price
Stating that the most
dramatic
graduates
easily get
position starting at $300 per
month; but it will be with a large
invasion.
peacetime years,
price level has usually been
reasonably stable,
"Business In
the
Brief"
riods
"In these pe¬
in production
moderate
increases in
points out.
the
matched
increase
supply. Wage rates rose, but no
faster than the rise in productiv¬
ity."
at
the
immediate
months ahead, "Business In Brief"
Looking
says
ten
the business curve may flat¬
in the third quarter due
out
He formerly was with
Struthers
&
Co., Alex.
Wood,
&
Service
Co.
&
is Joins
people will
personal
want
Sons and Hirsch
First Boston
attention
specialists whom they know
and trust.
I believe in pensions,
CHICAGO, 111.
Corp.
Orion Morris,
Vice-President
—
Interested
business
in
in
the
success
which
they
of
are
Morris F. La Croix
the
em¬
Morris
ner
ployed.
in
Felton
La
Croix,
part¬
Paine, Webber, Jackson-&
;
company.
,
the
on
this should suf-,
over-all activity mod¬
increase,
fice to lift
erately during the
fourth quarter.
optimism dominates
business
scene," states the
"An
the
Chase
air of
Manhattan/survey,
"pro¬
One
column
reason
writing
for
is the death
this
at Evanston,
111., of the founder of the National
Small Business Men's
Associa¬
He died
59, having
the unselfish
tion, DeWitt M. Emery.
at
the
duction,
employment,
incomes given
and consumption are at new high1
levels.
And
there's a
growing
young
his
life
age
to
of
ing nuisance/however, will give
young businessmen
an opportu¬
nity to call at homes and take or¬
ders
for goods.
More business
will
be
done
in the
evenings.
"Wagon-peddlers"
spite of
In
will
in number and usefulness.
increase
I fore-
Blyth Adds to Staff
(Special to The Financial Chronicle)
LOS
C. Fox,
,
this favorable out-<
-
This announcement appears
for
purposes
Jr., is now connected with
Blyth & Co., Inc., 215 West Sixth
Street.
oj record.
look, however, the bank points to.
developments
in
several areas
that indicate a need for caution in
appraising business
coming months.
One
prospects in
such development,
Reynolds Metals Company
accord¬
Manhattan, is the
start of a rise in inventories. Com¬
menting on this, the Bank states
ing
to
Chase
inventories are now some¬
what low in relation to sales, so
$155,000,000
that
pick-up may be warranted.
However,
there is danger that
First Mortgage
Bonds, Series A, due June 1,1980
some
overconfidence may lead
business
debt;
the
level
The
of stock market
prices; and the increased
culty in maintaining general
stability.
"Each of these areas
Notes due 1956-1960
undersigned have acted for the Company
arranging this financing privately.
in
diffi¬
price
could be a
potential trouble spot," the review
states. "At this juncture none of
them seems likely to upset gen¬
eral business in the months im¬
mediately ahead.
But they will
bear close watching as we move
through the rest of 1955 and
1956."
$80,000,000
Bank Loan evidenced by
into
iJ
|ij
Dillon, Read & Co. Inc.
July 29, 1955
:
ANGELES, Calif.—Robert
will
that the second half
the first."
during the to undertake excessive inventory
past 30 years have been born of buying in months ahead, which
war, the bank's publication says
in turn could necessitate a later
prices doubled in World War I; adjustment.
rose
almost
two-thirds
during
Other
sensitive areas
singled
World War II and its aftermath;
out by the Bank include the high
and went up 10% after the Ko¬
level of consumer and mortgage
"In prosperous
the
with
Trading De¬
partment.
fewer
from
examples of inflation
rean
and
Personal
be better tha'n
prices.
Even so, very large
increases, like the recent
7V2% increase in steel wages, are
associated
•
feeling
wage
become
firm in its Corporate
The
increasing
congestion of Curtis, Boston, passed away July
28
after a
short illness at
the
The smaller and automobiles (due to the dumbness
age of 67.
Following his return
of local city governments in not
younger business concerns cannot
to the United States after serv¬
afford to pay such salaries to be¬ providing
employers with suf¬
ing during World War I, Mr. La
pace.
- However,
with - business ginners.,
ficient off-street parking lots), is
Croix joined
Paine, Webber
capital
expenditures,
inventory
causing many families to move to
Dewitt M. Emery
Co., becoming a partner in 1926.
purchases and consumer buying
other areas to get work. The park¬
increases than
were typical in the 1930's without
pushing up the general average
of
has
quarry
a
improbability of the: auto¬
mobile and homebuilding indus¬
tries
maintaining
their- record
able
larger annual wage
Corporation,
York City, an¬
that Laurence C. Keating
nounced
Brown
I forecast that some
always
Securities
65 Broadway, New
own.
helping Babson Institute
to a position.
They can
the
to
all-time
Corp. Trading Depl.
formerly Second
modern factories, and air condi¬
or small
of
the
Continental
Illinois
Na¬
Tod^v the tioning, but these things will not
tional Bank & Trust Co., joined
situation is very different.
Nearly take the place of personal atten¬ The First Boston
Corporation in
all
the industries
require much tion by interested employees. Peo¬
its Chicago office, 231 South La
capital-and are owned by large ple like attention; they want to Salle Street, as Assistant Vicedeal with owners
of a business
corporations
outside Gloucester.
President in the government se¬
whom they know and trust.
Most
This is true of most cities; it is
curities department.
not
a
healthy situation. * It
is employees are today missing a
great opportunity to become truly
especially noticeable when I am
and resultant competition should help4
hold over-all price indices down despite larger annual wage
increases than were typical in the '30s. Discussing favorable
business outlook, survey, however, notes several. "potential
trouble spots," such as rising inventories and high levels of;
consumer and
mortgage debt and stock market prices.
With
overhead
Importance
locally owned.
factory
industrial productivity
4
days all
■■■
g%
>
a
of the United with lower
In fact, its employees.
listed on the New
Stock Exchange.
could
Anticipated
Bank's "Business In Brief" says
now
work to his advantage
n
Union
small operator or store¬
keeper. This could be an advan¬
tage to the small manufacturer
bitious and
appointed Assistant Treasurer.
Stable Price Level
in
In those
ness
Chase Manhattan
is
stock
and Herbert O. Wolfe.
Henry Scherping has been
to some 450 stores
38 states, under the
up
can
■
operator,
day be one. In¬
creasing the minimum national
wage to one dollar will probably
exempt
willing
rule—do not bother
a
the small "independent
corporate ownership
Stores
Corporation.
Young
appointment of the following
Vice-Presidents: Siegfried Abraham, Timothy P. Dono¬
firm
The
J.
family
This Utile store my
ago.
A small manufacturer
JOIHS UlllOII 06CUntl8S
Labor
selves may some
future. My
indi¬
an
if he will attend to his trade.
hoping that their members them¬
bright
a
be
shopkeeper,' however,
U
mate, a beau¬
and
to| work and having a good turn¬
over,
need
not
fear
sudden
changes and new methods. Many
is
"small
amended
break.
a
Unions—as
or
First, the Federal
have
laws
give
I surely would
form of merchandis¬
ideas
new
union rut.
.
the
benefit
businessman."
some
vidual, and not get into a labor-
happening today
are
could
which
much
of
a
advertising where I could
or
use
family expecting to prosper
without
good wife, this is
newspaper!
into
go
large
a
island lo¬
cation,
in
out
tioned" streets,
and
other
some
a
young
a
big company.
Or,
better still, I should try working
for, and some day own, a small¬
like a
prosper with¬
Sunday School — or even
condi¬
-
or
He
had
I
I would start, instead
way
working for
are
mistake
great
like
land,
"air
a
believed
church expecting to
f
high
He claimed that cities
city.
its
With
the
"24
give
to
Were
service.
and
man
able
thus
are
hour"
young per¬
business for them¬
a
making
New -York
Bos¬
Greater
ton.
►
a
su¬
burb
Aaron M. Netburn
Alex. W. Moore
B. Milt
and
depending only upon large man¬
ufacturing corporations owned in
be-
thriving
Philip
now
i s
coming;
encour¬
encouraging
to start
selves.
re¬
sort, :but
Every time I go to Europe I am
impressed by the number of fam¬
ilies who live on their business
labor union rut."
a
of
work
am
birthplace—a small city which is
now- noted as
a fishing port and
summer
his life to
gave
Abroad
Lessons From
Pays
concerns.
start,business for themselves. States
would go into project where he could
GLOUCESTER,
here
from
years
Reynolds & Co.
Incorporated
The Commercial and Financial Chronicle...
(476)
12
By HON. GEORGE M. HUMPHREY*
This
not
of the
"emergency facilities," recommends that,
result of studies
now
as
a
being made by the Defense Mobilization
lead to construction of facilities
quate for
ably
deliberately colored to meet
supposed defense needs.
and
still
be
can
useful
if
Value of
1950
welcome
this
opportunity to
appear before you and to express
the point of view of the Treasury
Department on the provisions in
Internal
laws
mit faster
equally and
able
basic needs of the whole economy.
far
amortization
This reduces the need for
otherwise
for income tax
out
singling
facilities
for
or
par¬
favor¬
purposes
of
ticular
the
of
able treatment than others receive.
certain "emer¬
highly selective program may
well have merit if it is strictly
cost
ties."
I
limited
want
it
make
that
I
to
'End
a
urging repeal.
sions
on
ties
the
of
the
scope
not
studies
now
Defense
been
rmmpnrey
being
made
Mobilization
completed.
I
the
until
the
by
have
Board
wish
this
at
simply to make certain sug¬
gestions which I believe should be
carefully considered in
the
which
the
defense
program
initiated in connection
was
War
Korean
has
been
substantially completed.
Emergency amortization served
useful purpose
during the early
phases of rebuilding and expand¬
ing
defense plant
capacity
to
a
that
emergency.
However,
accelerated
tax write-off is
artificial stimulus of
an
type.
ous
a
indefinite
Its
danger¬
continu¬
involves the very real danger
that interests receiving the bene¬
ance
fits of it
to
come
detriment
of
rely
others
to the
upon
who
not
are
favored. A defense mobilization
so
program
on
be
may
facilities
part of
not
scale
to
defense
years
of
our
an
integral
broad, orderly, long-
our
basic
for
be
should
natural
range,
Our
substantial
a
essential
Expansion
come.
economic
defense
growth.
capacity
in general on which our nation re¬
lies for its economic strength. Arti¬
ficial stimulants may well become
is
one
controls.
not
but
who
some
against
could
of
is
it
than
other
of
war
Because
universal
bestowed
especially
others
become
this
upon
qualilfy
who
do
not,
hindrance
a
a
as
it
to
difficult
more
the
fits often
the
could
waste
extra
be
for the
good
The
gram
four
sent
expense
to
pre¬
direct
estimates of the
dollar
impact of the present program
You
revenue.
the
estimated
fiscal
will
loss
revenue
on
that
note
this
million.
With our budget not in balance,
this figure gives us serious con¬
year
will
Extension
cern.
well
for
all
be
to
business
tinued
of
in
the
way
tax
of
reduc¬
which
important assistance
economic
our
growth
to
and
programs
poses
this
about
use
further
should
laws
remember, in
the
of
cent
any
consideration
problem, that several
re¬
changes in the tax laws have
substantially altered the tax pic¬
ture which existed when acceler¬
ated
amortization
facilities
we
had
was
an
of
first
excess
adopted. Then
tended
business,
to
profits from
and
discourage
penditures for
new
thereby
large
ex¬
plant facilities.
power
be
used
*A
statement
the
by Secretary Humphrey
Subcommittee on Legal and
Monetary
ment
D.
Affairs of the House Govern¬
Operations Committee, Washington.
C., July
18, 1955.
1,344
605
30,521
18,313
1,279
2,060
781
351
30,521
18,313
1,228
1,383
30,521
18,313
1,146
743
—403
—181
30,521
18,313
1,080
372
—708
—319
—377
Interior
and
Ad¬
30,521
18,313
1,037
200
18,313
1,000
63
—937
30,521
18,313
967
0
—967
Staff,
Tax
in
t-435
July 18, 1955
Division.
These estimates
year.
—422
the Treasury,
order
to
based
are
reconcile
with
the
on
O.D.M.
corporate
reported
figures,
but
deductions
amortization
for
1952.
on
holders
the
basis
the
use
acquired
tax
of
straight-line
a
declining-balance
after
Jan.
1,
rate
method
1954,
of
at
6%,
assuming
that
all
200%
switching
rates
reflecting
rate
decrease
EMERGENCY
of the straightline
straight-line when it
to
(In
millions
of
scheduled
Fiscal
law.
Decrease in
Year
4
1960
266
1961
569
1962
776
tax collections
1959
77
1963
880
_
_
370
.
.
87
—310
_
—374
1964
810
_______
present
dollars)
tax collections
___
under
AMORTIZATION CERTIFICATES
Decrease in
1965
—420
—434
_
625
the
Secretary of
TAX
Tax
the Treasury,
July 18, 1955
Division.
AMORTIZATION
(Money
APPLICATIONS
AND
CERTIFICATES
figures in millions of dollars)
Certificates issued
Certificates
(net)
outstanding at end
Applications filed
during periodt
Period*
the basis
70
—837
30,521
Number
1950
on
155
advantageous.
of
Depart¬
882
during period tt
Value
Number
1,014
1951
3,923
of period t
Value
149
Number
Value
149
1,3305
4,3705
1,330§
5,322
12,695
788
;
3,040§
937
quan¬
2nd
quarter
4,030
5,566
1,385
3,135§
2,322
7,5055
of
3rd
quarter
2,853
2,628
1,767
1.8055
4,089
9,3105
wartime supply and requirements.
4th
quarter
2,1245
5,471
ditional expansion
titatively
shall be
(2)
measured
Expansion
based
the
in
terms
shall
goals
shortages
upon
judgment
will
without
the
10,104
of
2,272
1,382
8,101
9,544
11,434
12,649
1st
be
2,517
2.924
3,267
5,3755
8,738
quarter
1,802
2; 073
3,350
4,2255
12,088
21,0345
quarter
1,417
1,559
1,913
1,8255
14,001
22,8595
4th
delegate
quarter
2nd
3rd
the
not
in
which,
2,085
7,036
1952
be
quarter
15,015
24,083
overcome
incentive
of
1,300
1,545
1,014
1,2245
3,426
5,765
3,617
1953
16,8095
4,942
tax
amortization.
When
Board
the Defense
has
1st
quarter
1,022
1,355
1,176
1,599
16,191
2nd
quarter
1,108
1,844
1,235
1,627
17,426
quarter
664
1,503
681
830
18,107
2M39
quarter
632
1,063
525
886
18,632
29,025
635
Mobilization
completed
its
review
3rd
of
the
these
in
program
the
of
light
criteria, and made its
4th
that
1954
27,309
1,500
2,643
756
1st
quarter
374
736
359
477
18,991
29,502
2nd
quarter
434
609
—107
—568
18,884
28,934
3rd
quarter
375
917
282
678
19,166
29,612
4th
quarter
317
381
222
48
19,388
29,660
1st
quarter
370
920
223
372
19,611
30,032
2nd
quarter
660
3,012
350
489
19,961
30,521
Mobilization, it is expected
the
will be
25,682
;
recom¬
mendations to the Director of De¬
fense
program
on
This is
a
for the
future
basis.
proper
not
critical
the
of
past.
1955
Nor is it
thought best to abandon
the practice entirely.
fulness
in
But its use¬
future
the
Office
be
will
whole
a
if
from
it
now
of
the
Secretary of the Treasury,
Analysis Staff, Tax Division.
greatest for the good of the nation
*
Based
calendar
is
years
only
sparingly
strictly
and
and
very
confined
amendments:
taining
to
applica¬
progress
reports
calendar-year quarters.
or
from
cumulative
that
data
which
data
for
certain
effect
of
decumulated
reflect
net
the
reflect revisions,
data
SOURCE:
Office
not
may
reflect
of
1955
Defense Mobilization.
coincide
exactly
with
revisions,
periods
adjustments,
reflect revisions
may
and
per¬
other periods.
to
tData
war-requirements
tions.
July
bi-weekly
on
tDerived
adjustments,
certificates
Issued
and
canceled;
qumulathre
and amendments.
§Rough approximations.
EFFECT
ALLOWANCE
OF
Based
on
EMERGENCY
OF
certificates of
$30,521
(In
AMORTIZATION CERTIFICATES
million
millions
of
issued
through June
29, 1955
dollars)
Decrease in
tax liabilities
under
Excess of accelerated
accelerated amortization]
amortization
to tax
Calendar
completed
Year
projects^
amortization
only to
for
700
1951
as
compared
Straight-
Declining-
Straight-
Declining
amor¬
line
balance
line
balance
Straight
tization
depreciation
depreciation
line
to
?©eclining'*
'
-balance
depreciation ^depreciation
6
6
21
15
15
7
7
2,500
87
87
292
205
205
113
113
249
831
582
420
4,167
1952
is dan¬
Accelerated
Normal depreciationt
Amount subject
to accelerated
9,683
use
tax
the
social
purposes,
citizen
or
group
laws
for
favor
one
of citizens
over
to
others, to exercise economic
or
to
indirectly
5,810
249
582
308
308
16.000
9,600
463
463
1,541
1,078
1,078
593
593
22,000
13,200
684
787
2,280
1,596
26,594
15,956
1956
28,244
16,946
1953
~
1954
,
•
.
1,493
798
747
1,132
2,895
2,020
1,763
1,010
882
.1,279
875
-987
;
2,999
2,012
1,720
931
796
con¬
1957
29,479
17,687
1,038
1,289
2,633
1,595
1,344
718
1958
30,521
18,313
1,079
1,279
2,060
981
-781
441
351
our
1959
economy.
If, in th wisdom of the Congress,
such
subsidies
or
to
18,313
1,098
1,228
1,383
285
155
128
70
30,521
18,313
1,098
1,146
743
—355
—403
—160
—181
30,521
18,313
1,098
1,080
372
—726
—708
—327
—319
1,098
1,037
200
—898
—837
—404
—377
—1,035
—937
—466
—422
—1,098
—967
49-1
1962
30,521
18,313
for special
1963
30,521
18,313
1,098
1,000
desired, then appro¬
1964
30,521
18,313
1,098
967
0
or
priations should be made for the
which
purpose
to
the
can
be submitted
Congress through
regular
Office
of
corporate
-
well
known
and
where
the
the
Secretary
of year.
of
the
amortization
holders
,
Treasury,
These estimates
deductions
tStraight-line depreciation
certificate
channels where the amounts will
be
.
63
special communities
purposes are
assistance
30,521
1960
1961
segment of
any
•
605
subsidize
♦End
before
2,633
1955
to
gerous
trols,
1,289
pur¬
not
revenue,
other indirect purposes. It
profits tax which
took up to 82% of the
corporate
emergency
17,687
23,161
1950
Moreover, I think it important equitably raise
to
Office
goals with the follow¬
Value of
nue
7)6
29,479
other than simply the col¬
is the power to destroy and reve¬
not the American way.
the
Transport
of
lecting of taxes. The
It is
been
special
accomplish
1,720
6,941
ex¬
of
whole free economy.
Defense
Finally, I should like to speak
laws
2,999
15,909
direct
frankly
1,279
quarter
rigidly
tax
16,946
1st
used
and
pansion.
the
the
as
Evaluate goals
con¬
sound, balanced, vigorous growth
our
(1)
as
to
and
The Proper Use of Revenue Laws
very
had
requested
Commerce
the
program
taxpayers
would
all
the
general
more
tions
of
stand
may
$880
be
28,244
the
to
They have been pre¬
pared by the Tresury staffs. These
tables will give you the facts, and
the
of
such
agency,
tables
747
1,763
of defense need. The need for ad¬
economy.
statistical
593
1,493
2,895
1953—
ing points in mind:
Committee.
our
public
ministration, to review all existing
or
hardly would
significant. I shall
are
of
purposes
it
expansion
it
effects of the pro¬
revenue
1,078
2,280
Analysis Staff,
ments
than absorb
more
and
burden
may
the taxpayer—but it
1,541
787
Fiscal
minimum and it
a
recently
to
and
wisely,
very
program
has
tions
production
administer
ob¬
agencies that make recommenda¬
areas
existence of
lead some
taxpayers to construct facilities
deliberately colored to meet sup¬
posed defense need. The tax bene¬
such
tions
con¬
without
essentially arbitrary
discriminatory results.
applica¬
only
the
to
been
The Office of Defense Mobiliza¬
directly needed
are
war
program—
into
direct
the
—
becomes
the
extends
goods that
for
suggest,
463
1,132
EFFECT OF ALLOWANCE OF
served.
to
meet
however,
necessary
9,600
15,956
JEffective
than
7
13,200
assets
becomes
kept the investment of
great
no
their
—
present facili¬
Government
I
can¬
broad base of productive capacity
tion
cases
308
16,000
of
for
properties to be disposed of when
and which
war
by
broader
more
future
soundly be separated from the
artificial
is
goals.
the
tne
meet
the
met
where
Indeed,
"crash"
with
study
any
matter.
The
those
that
made
be
time
of
be
and
tribution
Uuuigc
program
should
special
very
"must" in time of
cannot
deci¬
Final
left
ing need for goods that would be
not
am
to
113
582
26,594
and
rate
avail¬
quicker
have
15
205
831
Year
where there is present and press¬
clear
would
It
21
2.2
tComputed
management
far
and
6
87
249
modified
1951
for
means
made
was
private
public funds to
A
facili¬
gency
more
better
tained.
private
420
5,810
22,000
Analysis
that
Decrease in
liabilities]:
n
2,500
Office of the Secretary of
the investment of
that
under
accelerated
particular taxpayers
of
sums
production
the
meet
11995568742
19631964
to
Excess of
accelerated
amortizat
700
1959.
limited
exclusively
subject to
9,683
certificate
large
capital recovery by all
taxpayers
and
end. It induced
Code now per¬
Revenue
allow
tax
our
which
strictly
repealed as of Jan. 1,
1954. The new liberalized depre¬
ciation methods
under the 1954
That tax was
1955
4,167
1951-
are
I
29,
dollars)
Accel'd
war
CERTIFICATES
June
Amount
amortiz.
ex¬
pediting preparation for the
of
through
Normal
rigid restrictions
of real assistance in
was
millions
AMORTIZATION
issued
depreciationt
Rapid amortization unquestion¬
program can
(In
million
accelerated
protection.
our
EMERGENCY
$30,521
amortization
special
under
or
OF
of
projects*
when usual procedures are inade¬
Calls the accelerated tax
write-off "an artificial stimulus of a dangerous type." Says
existence of the accelerated amortization
emergency
certificates
completed
laws, where
applied by men,
are
ALLOWANCE
on
Year
action
tax
conditions under
Board, the allowances be reduced.
the very
the
of
use
OF
Based
Calendar
deficits
our
formal
by law, is appropriate only in
an
of certain
and
without
the stimulants
Sec'y Humphrey, while not urging repeal of the laws which
cost
reduced
appropriations by the Congress.
or
Secretary of the Treasury
■
be
can
increased
allow accelerated amortization for income tax purposes
1119995562743680
2
EFFECT
Congress specifically can vote in
favor of or in opposition to special
treatment for any group. Under
this program of tax reduction in
special cases, our net revenues
Grounds for Limiting Scope of
Accelerated Tax Amoitization
Thursday, August 4, 1955
use
this
are
based
for
1951
rate
method
Analysis
Tax
the O.D.M. reported
and
1952.
assets
is
6%.
Amounts
acquired
after
shown
Jan.
1,
July-18, 1955
figures,
but
are
modified
tax
rates
reflecting
rate
decrease
on
April
1,
in
order
reconcile
to
for
1954
declining-balance
switching
with
'
-
to
depreciation
straight-line
vantageous.
{Effective
—435
Division.
on
assumed
for
Staff,
-
1956 scheduled under present law.
wher
*
sume
1
that
becomes
all
ad¬
Volume 182
Number 5452... The Commercial and Financial
Chronicle
Eastern Securities Elects Officers
Theodore
securities
main
Plumridge has been
elected
President
of
rates, changes in which
be
Eastern
Inc., 120 Broadway, New York
City, and John P. Ger¬
Vice-President.
1 irst
is
(477)
foretold
with
seldom
can
precision, Moreover, recent
perience has also shown that
with
marked
a
movement
the
ex¬
even
in
reversal
Some Stock Dividend Prospects
of
degree
any
By WALTER A. SCHMIDT
the
General Partner,
of this type of capital,
on
the exchange rate
effect
of
the
conclusion to be drawn
from recent trends, it is that the
stability and continued premium
dollar
Canadian
of
opposing
forces, first
among them being
and
foremost
the
apparently
traction
declare dividends in stock.
the
is
of
undiminished
Canada
as
For
cash
at¬
is
higher income
tax bracket, the need of
secondary interest compared with stock
quite of
which
within
come
in the
persons
income
dividends
field for
a
foreign investment."
tax-free
of
category
dustries
John
P.
Germain
J.
Jay Schwadron, formerly with Burke & Co. for 20 years,
has been appointed Manager of the Trading Department for East¬
ern Securities.
»
Facfces
Underlying Premium
Canadian Dollar
on
flowing into Canada
steady premium
on
issue
the
background for
a
has
July
Mr.
C.
the Canadian dollar.
"Business Review" of the Bank of
Montreal,
large profit transfers.
of
one
of
the
largest
banking institutions, is
devoted largely to a discussion of
the position of the Canadian dol¬
lar, and the continuance of a
Canadian
steady premium on Canadian ex¬
change in relation to the U. S.
dollar.
in
Alter
the
noting certain shifts
Canadian
balance-of-paydevelopments in
the domestic economy, the article
ments
other
and
offers
interesting comments
regarding the impact of new capi¬
tal
"Aside from its
delayed impact
in
respect of income payments,
the capital inflow of the past five
years has generated a number of
changes in the field of merchan¬
dise
trade.
On
hand, it has
been accompanied by a movement
into the
country of machinery,
equipment and skilled personnel,
all
of
which
one
have
involved
some
investment
from
abroad
creased foreign
ments.
on
industrial
new
Canada's
foreign exchange situa¬
in¬
exchange require¬
On the other
hand,
as
facilities
F.
with
an
of $67 million in
average
the years 1946 to 1949.
In addition
to the supply of new capital since
1949, some $264 million annually,
representing mainly retained earn¬
ings from existing facilities, has
also
been
added
the
to
value
of
foreign investment in Canadian
subsidiary companies.
The total
book
has
value
in
of
fact
investtment
such
risen
by
than
more
80% from $3.6 billion at the
end
a
arising from
ternal
growth
transactions
strength of
the
and
Canadian
of
and income.
ex¬
inherent
production
But the fact remains
that the rise in outpayments of
interest, dividends and profits has
a marked improve¬
purposes,
ports
in
were
up
total merchandise ex¬
first three months
11% over a year earlier,
the
direct
much of the increase occurring in
residents,
and despite an expan¬
during the same period of $1
in foreign portfolio hold¬
ings of Canadian securities, the
shipments
sion
products.
billion
higher
annual remittance of
dise trade improved to the extent
of $59 million over fhe same pe¬
which
in
commenced
which
but
1951
scheduled
not
are
to reach
the target production of 10 million
tons per annum until 1956.
"For
most
howeier,
initial
the
ventures,
interval
between
investment
turn is
of
industrial
the
not
as
and
long
profit
in the
as
iron-ore project
and
case
there
signs that profit remittances to
parent companies abroad may once
again be cn the rise. During the
six months ended
total
dends
payments
and
$278 million
March
of
31,
interest,
profits
1955
divi¬
amounted
compared
with
to
$222
milllicn in the corresponding pe¬
riod a year earllier. A change of
this magnitude is
be accounted for
external
more
by
portfolios
than
the
of
rise
can
in
Canadian
mineral
of
which
his
their
&
Walter A. Schmidt
the
of
District
Dealers
and
a
a
member
mittee.
is
a
of
Each
mem¬
that
year
it produces the
in
Philadelphia
in
the
only 4%
a
stockholder receives these stock dividends,
program
over
the years it proves of great value and
requires patience
sell to investors of substantial
The Milwaukee Company
on
the part of stockholders but
is
a
very
easy
"It is axiomatic
upturn could not
without
a
rise in
particularly
which
dom
in
Chicago,
Approx.
Madison,
Green Bay, Racine and Wausau.
Dividends
Market
Company
Paul,
St.
(Plus Stock)
Food
Fair
6IV4
Penn
Fruit
29i/2
$1.00 4- 3%
Yield
=
1.63% +
3%
.35 +
4%
=
.87% +
4%
Citizens Utilities
161/2
.48 +
3%
=
2.90% +
3%
Thorofare Markets
24
.40 +
5%
=
1.66% +
5%
Phila. Suburban Water-
361/4
.50 +
5%
=
1.37% +
5%
Gulf Oil
With Barrett Herrick
871/2
2.50 +
4%
-
2.85%
4%
74
1.00 + var. =
.
(Special to The Financial Chronicle)
ST.
Mo.—Glenn
LOUIS,
Sherrod is
now
M.
with Barrett Her¬
Sun
Oil
Co._
rick & Co., Inc., 418 Locust Street.
He
was
With Marache,
(Special to The Financial Chronicle)
Mo.—George
LOUIS,
now
members
of
members
the
of
Stock Exchange.
Stock
Midwest
with
Exchange.
Boll is
First
Los
He
was
California
LOUIS,
now
Mo.—E.
& Co., Inc., Boatmen's
Building, members of the
Exchange. Mr. Boll
was formerly with Newhard, Cook
& Co. and Slayton & Company,
Bank
Midwest Stock
Angeles
formerly
Inc.
Company.
offer to sell these securities.
of
They
are
subject to the registration and
requirements of the Federal Securities Act. Information about the issuer, the
securities, and the circumstances of the offering is contained in the prospectus which
must be given to the buyer.)
NEW
IDENTIFYING
OFFERING
STATEMENT
Sulphur Company
Gulf
Houston
500,000 Shares Common Stock
(Par Value
accourfed for most of
Nevertheless,
strength
must also
not an
prospectus
this export
hsf/e taken place
the increase in sales.
given
(This is
demand
there
be the
capacity to meet
it, and there can be little doubt
that, with many of the expansion
projects of the past few years
reaching
the
productive
stage,
Canada's export capacity has been
enlarged considerably of late and
per
Share)
Price to the Public: $1.20 Per
Share
organized on January 21, 1955 for the purpose of
acquiring, exploring and developing sulphur properties. It has acquired sulphur leases
on parts of Humble Dome, Harris County, Texas and the initial objective of this offering
is to provide the funds to finance further exploratory work on these properties.
As of April 15, 1955, the Company had outstanding 550,000 shares of Common Stock.
There is presently no established market for these shares.
The registration statement covering these securities is not yet effective. No purchase
or sale of the securities should
he made and no offer to purchase the securities will be
Houston Gulf
Sulphur Company
was
accepted Until the registration statement has become effective. The publication of this
notice is no assurance that the proposed offering will he made or as to the amount of
securities, if any, that will be available for distribution by this firm.
should continue to increase in the
ahead.
years
"These
tinent
to
Copies of the preliminary prospectus
>
considerations
an
are
appraisal
Canadian dollar. At the
in
that
capital movements
of
the
tal,
can
occur
are
shown by recent experi¬
is liightly sensitive to inter¬
national
52 Broadwav, New York 4,
Please send
differences
in
interest
me
a
52 Broadway, New York 4,
N. Y.
of the preliminary prospectus relating to Houston
copy
Gulf Sulphur
Company.
Name
•
(
Address
City
Telephone
v.
N. Y.
Dlgby 4-2785
5
Dlgby 4-5237
interest-bearing capi¬
as
ence,
HUNTER SECURITIES CORPORATION
GARRETT AND COMPANY, INC.
same
likely to
have a determining influence on
the exchange rate. Yet this influ¬
ence,
while
it
may
be
deter¬
mining, is almost indeterminable.
The flow of
be obtained from:
per¬
time,
however, it must be recognized,
that, in the short run at least, the
large fluctuations
may
Zone
Theodore
connected with Fusz-
Schmelzle
Doffle¬
& Co., 634 South Spring St.,
myre
812 Olive Street,
the
Calif.—Albert
ANGELES,
O. Nelson is with Marache,
T.
associated with Red¬
den & Company,
(Special to The Financial Chronicle)
ST.
LOS
ST.
1.35% + ?6%
Fusz Schmelzle Adds
Dofflemyre
(Special to The Financial Chronicle)
Joins Rec?den Staff
Diehr is
+
formerly with Waddell &
Reed, Inc.
t|at
external'demand,
thef United King¬
idea to
means.
member of the Midwest Stock
/
riod last year.
Suburban
effect of writing down their costs to that extent.
comparison,
same
seen
approxi¬
paying 3% should double the
This
Exchange and
its Executive Com¬
Exchange and has branch offices
in
double
number of shares in about 24 years.
ber of the Board of Governors of
the Midwest Stock
shares
like
and Food Fair and Citizens Utilities
Commit¬
is
of
of shares in about 15 years; Gulf Oil and Penn Fruit
paying 4% should double the number of shares in about 18 years;
tee of the National Association of
Securities
pay
number
from
new
member
who
;
Water and Thorofare Markets paying 5% stock
dividends should provide holders double the
&
Co.,
companies
manner.
Their stockholders have
25%.
was
number
Companies
with
Co., government
specialists.
He
was
with
his
ap¬
mately 8 years' time.
in¬
the
1928
forest
and
imports
With
Canada's net balance of merchan¬
re¬
are
in
those
in this
ment in Canada's export trade. As
adjusted for balance of payments
of last year.
interest, div¬
idends and profits abroad is actu¬
ally lower than in 1950. Part of
the explanation for this apparent
anomaly lies, of course, in the
substantia] degree of profit reten¬
tion. A second important factor is
the inevitable
lag between the
construction
of
new
productive
facilities and their profitable oper¬
ation. An outstanding example of
this is the Quebec-Labrador
iron)
fields, extensive development of
in
started
business
among
dividends
coincided with
of 1949 to $6.6 billion at the close
"Yet despite the rapid growth in
investment held
by non¬
the
demand
Slezak
with
real
I refer to the accompanying list
me.
are
the
possibly more
developments in Can-
international
d a's
Edward
small cash dividends and
pay
Among those shown in the table, the out¬
standing performer of this plan is the Sun Oil
Company common stock.
In 1950 and 1951
they paid 10% in stock dividends; in 1952 and
1953, 8% and in 1954, 5 shares for 4 shares
March, 1939,
connection, which
is effective Aug. 1.
He is a past
until
have
from the broad and
important
their
Vice-President.
Childs
Loewi
reached the
production stage they
have in some
cases, such as pe¬
According to the article:
troleum,
reduced
Canada's
de¬
"It is new five years since the pendence orr imports and in others,
commencement of the upsurge in such as mining and pulp and pa¬
direct
investment
from
abroad. per, increased the volume of ex¬
The average annual inflow during ports.
the period 1950 to 1954 inclusive
"These direct results of foreign
has been $336 million compared investment cannot be
segregated
tion:
G.
associated
Slezak
vestment
a
securities and part of the increase
must therefore
be attributed
to
21st
that
become
bond
The
which
MILWAUKEE, Wis.—Joseph T.
Johnson, President of The Mil¬
Company, 207 East Mich¬
igan Street, members of the Mid¬
west
Stock
Exchange, has
an¬
company as a
July issue of the "Business Review" of the Bank of Montreal
finds capital funds
peal to
waukee
nounced
which
regular stock dividends which have
Milwaukee Company
Schwadron
Jay
J.
until
sold, after which time they
capital gains.
There are several
companies within the food, oil and utility in¬
are
the
,
G. E. Slezak With
Theo. E. Plumridge
& Parke
Mr. Schmidt, holding investors in the higher income tax brack¬
ets should be more interested in stock than in cash dividends,
lists seven companies which have issued or are likely to
any
product
Schmidt, Poole, Roberts
Philadelphia, Pa.
may to some extent be negated by
the flow of equity funds. If there
is
13
.Slate.
Thursday, August 4, 1955
Commercial and Financial Chronicle.;.
The
U
(478);
Continued
Check or money order should
of Chicago."
Tuition is $45.00- and must accompany the Enrolment Form.
.Stationery and postager on lessons both to and from the instructor
are supplied by the student. For cost of books, see "Text Material."
r
Although specifically designed for employees of member firms,
the course is available to the public.
This course is available to armed forces personnel through
the United States Armed Forces Institute.
Applicants interested
in qualifying under the USAFI program should write to the HomeStuay Department of the University of Chicago.
Because the number of eligible veterans who currently qualify
under the provisions of Public Law 346 and Public Law 16 is small,
the University contract with the Veterans Administration has been
37, Illinois.
Sixtieth Street, Chicago
Stock Market Seminar
'!
be made
1952
,
Growth records of total life in¬
1953
1951_
under the provisions of Public Law
vetefans of the Korean War.
1949
I
information and requests for
for further
1947
Educational Director, Investment
America, 425 Thirteenth Street, N.W.,
of
Washington 4, D. C.
1946
1945
The above shows about a 234%
,
FUNDAMENTALS
about 23%
BANKING
INVESTMENT
OF
tle
Funds—Stocks.
average
Funds—Bonds.
the
Sources of Corporate
Jones
4.
the first "Stock
5.
Funds.
Interest Rates and the Cost of Funds.
of Chicago's future capitalists, students from
group
Commercial
School
High
who
members
were
of
Market Seminar" in the offices of Arthur M. Krensky and Co., Inc.,
stock
Chicago
brokerage
firm,
shown
are
with
here
Arthur
President
(far right).
classroom
education by permitting students to
how
in
investment
The seminars
American
seminars being handled
the
first
I. B. A. Offers
business
is
see
to
are
The
student
America
Committee
developed
a
of
the
conclusion of
Investment
18.
Association
of
of Investment
of
tees
I.
the
was
B.
A.
on
classroom
a
basis.
Approximately
was
provided through the cooperation of more than 20 universities
and colleges throughout the nation.
At the present time, however,
such classroom courses are being offered in only a few of the
make
training
22.
available
program
in
all
parts of the country a comnarable
offered
that has
in
many
The
are as
panies.
manner
in which
Issues (I).
10 times those of 1945,
(II).
2-
To
familiarize
trends
banking functions performed by
the industry in channeling savings from the saver to the user, in¬
cluding a consideration of how investment firms are organized to
perform these functions.
able data in order that the student may be in a better position to
advise clients with respect to the suitability of particular issues
Bank
student in
for their portfolios.
factors
that
influence the
determining and understanding those
of business and to guide him in
level
adapting investment policy to these fluctuations.
6.
lems
To acquaint the student with the principal
financial prob¬
faced
by corporations, including determination of income,
depreciation policy, dividend policy, refinancing and reorganiza¬
tion, and the effects of decisions in these
in corporation
7.
Finally,
whole field of
more
the
upon
the investor
student's
understanding of the
finance in order that he may be able to render a
to
the
investment
community and the in¬
:|s
study
of each lesson.
on
a
has. certain
advantages:
questions and problems
Because
on
the subject matter
person-to-person basis—he reecives individual attention.
*
*
*
Exchange will accept the course in par¬
tial satisfaction of the requirements necessary to qualify individ¬
uals as registered representatives.
REGISTRATION
are
accepted
at any
.
time... In order-to enroll,
pushed
the
being
upward.
Business com¬
increasingly directed to
is
that
dangers
these
ket
prices
implicit
are
developments and the
in
mar¬
expectations aroused by them."
prospect, which will help hold
the cost of living against the in¬
"It
is
recognized that there are
counter influences.
some
absorb
higher
nessmen
will
wage
call
design and
upon
economical
more
bor-saving
as
To
costs
in
have
equipment,
the
appeared,
but
Under
scious.
tive
tends
Home-Study Department, The University of Chicago, 1375 East
to
a
•
strongly
conditions
to
each
may
for
sure
able.
downward,
heavily
business fluctua¬
again in 1953-
to
54 they
powerful influences
were
both
and
recession.
To
excessive
inventory
ac¬
boom
minimize
prudent busi¬
management and appropriate
cumulation,
both
policies,
public
the monetary
mar¬
con¬
competi¬
business
keep its price increases
minimum and accept some
ap¬
share
per
the
on
but it is believed
will be increased short¬
the present new stock.
on
the four
with intereliminated were
The combined assets of
companies
Travelers
items
comnanv
$2,828,435,036
Dec. 31, 1954.
on
the
Pacific Far East Line
Is! Pfd. Stock Offered
A.
G.
are necessary.
government action late last
in
moderately increasing
grcuo
which
on
first
pre¬
stock, $25 par value,
514%
cumulative
Inc.,
Line,
ferred
series
convertible
of
shares
stock,
$5
priced
par
are
being sold
by
company's
a
insured
that
the
mortgages,
authorities
watching the situation closely."
of the
to
ferred stock and the balance
will
working funds.
Pa¬
lar
are
are
portion
small issue of junior pre¬
added
to
cific Far East Line
or
stockholder,
Corp.
payments and shortening
maturities on Federally guaran¬
teed
a
Of
shares
proceeds will be used in part
retire
a
common
share.
60,000
stock,
common
The
value
at $10 a
the
The Chicago
at
1955,
of
share, and 160,000
price of $25 a
be
evidence
offered
East
2
Aug.
80,000 shares of Pacific Far
month
down
Chi¬
Inc.,
Co.
&
Becker
ill., hpaded an underwriting
cago.
in
particularly
area,
continuing boom without con¬
impossible.
The current Federal
Reserve
policy of mild money
mr.rket
restraint, together with
they
ly
In 1949 and
tions.
A
contrib¬
tinuing credit expansion would be
and
should
market,
of $.76
rate
,
and
upward
ness
manufactured
higher
prices and the stimulus to
buying
are
indisput¬
The swings
of inventory,
inventory
ute
as
gen¬
Competition
on
these considera¬
be, however, the pres¬
"Reassuring
Some
and
prices in many
kets and keeps buyers price
presses
past
goods, materials
fortunately few.
are
busi¬
engineering for
processing, la¬
erally improved efficiency.
labor
help
influences.
flationary
in
comments:
in the Over-
stock traded
in
goods
and
Busi¬
self inter¬
Furthermore, no marked
prices seems
pay.
industrial
costs
own
rise in farm and food
tions
fill out the Enrolment Form and send it with the full tuition to the
the
prices beyond
what their customers are willing
to
over
pay
peal to investors desiring capital
gains rather than large current
income.
1954 dividends were at
advance
est cannot
Letter"
Bank
scarcities of
The New York Stock
Registrations
sizable wage
way,"
toe
their
in
to
share for the old stock.
a
present stock,
profit margins.
on
nessmen
points
out, "and wage and salary dis¬
bursements are on the rise, with
the
He is encouraged to correspond with the instructor
*
under
Continuing, the "Monthly Bank
begin his study at
any time rather than waiting perhaps months for the opening of
a classroom course.
He may progress at a pace suited to his ability
and convenience.
The registrant is required to prepare in writing
to the
is
"Monthly
#
is constantly available the trainee may
answers
"A pattern of
Letter"
Correspondence
the
ahead.
increases
banking business.
*
course
City National Bank of New
calls attention to dangers
which
may
lie
in the months
ment
broaden
effective service
vestment
areas
securities.
to
First
York,
To aid the student in
5.
of
the
"Monthly
Letter," publication of the
issue
August
squeeze
hesitate
would
dividends
"a rosy pic¬
mid-year," the
After summarizing
developing judgment in determin¬
ing securities values through financial statements and other avail¬
To assist the
a
i
ture of business at
4.
more
This
followed
temporary inflation of demand,
inevitably by a reaction.
create
may
about $115 per share,
nrice should cre¬
demand among investors
the-Counter
City Bank of New York poses question whether a wage-price
spiral
stock
is selling at
$2,000
National
August issue of "Monthly Bank Letter" of the First
3. To outline the investment
25-
a
new
and the present
Companies.
Says Inflationary Banger Persists
ability of funds to business enterprises and the types of investors
who are in a position to supply these funds.
This
for-one stock split.
ate
affecting the avail¬
snlit 20
was
25% stock dividend
a
declared thus effecting
was
-
and
one
who
bonds and stocks.
the student with
stock
Recentlv the
busi¬
enterprises obtain their funds for plant, equipment, and
working capital and to acquaint the student with the characteristic
about
the stock is
selling today at about five times
its 1945 price.
for
•
;
3,600,000 ,V
While earnings today are
ness
-features of the various types of
1950
1946_1
Commercial Banks and Trust Com¬
Investment Policies of Insurance
30.
6,800,000
1949___'___
-
$7,600,000
_
19451
Policy.
Investment Policy for Individuals.
Investment Policies of
by
5,600,000 i
5,600,000 >
5,600,000
.I— 4,400,000 *
4,400,000
3,600,000
3,600,000
1947_>
Markets.'
f?".
Governmental Regulation of the Securities Markets.
/29.
in¬
shown
___________
1952______
of Securities.
.
1. To familiarize the student with the
1 Q54_
1948
The Over-the-Counter
28.
stated,
'
1951K:
The Securities Exchanges.
27.
been
as
generously
following:
Total Cash Dividends Per Year
•
PART FIVE—Investment
folder.
The objectives of this training program, briefly
follows:
the
-
Origination and Distribution of New Issues
£6.
also
have
Dividends
creased
"
Origination and Distribution of New
^5.
University of Chicago, an in¬
an outstanding record for correspondence work
fields, to prepare the course described in this
age.
.
24.
in the Fundamentals of Investment Banking the
nolicies of this
considered by com¬
observers to have been
are
petent
conservative than the aver¬
Mergers and
PART FOUR—The Marketing
share in 1945 and
per
more
—
23.
Education Committee selected
stitution
a
21.
larger cities.
To
;
>
as
were
investment
The
company
Consolidations. b Holding Companies.
K.y •
Refinancing and Reorganization (I).
Refinancing and Reorganization (II).
20.
2,500
employees of member firms benefited from the training that
'
.•
Dividend Policy.
19.
offered through the Group Education Commit¬
1954
and
$7.52 per share in 1954.
THRFE'—Problems in the Financing of Corporations.
PART
.
Banking which
stock
for
follows:
outstanding
new
74.96 cents
Analysis.
Corporate Stocks as Investments.
The Business Cycle and Security Prices.
17.
World War II the
Bankers
the Fundamentals
in
course
;
rate of 100% per year of
earnings.
Earnings on
1945
1945
.
Correspondence
Immediately following the
Education
>\
believed to be
Course in Investment Banking
.
Interpretation (I).
7.
Financial Statements and their Interpretation (II).
8. .The Analysis of Public Utility Securities (I).
9. The Analysis of Public Utility Securities (II).
The Analysis of Railroad Securities (IK
10.
The Analysis of Railroad Securities (II).
11.
The Analysis of Industrial Securities.
12.
fine
13. The Analysis of United States Government Securities.
14.
The Analysis of Municipal Securities.
a The Analysis of Foreign Securities.
15.
•
b The Analysis of Real Estate Securities.
16. The Analysis of Investment Company Securities.
Chicago brokerage firm.
a
the
Financial Statements and their
6.
supplement
for themselves
handled.
by the Krensky firm
initiated by
ever
designed
are
Sources of Short-term
PART TWO—Security
M.
Krensky, President (second from right) and Alfred J. Betar, Vice-
per share in this 10period have increased even
spectacularly—namely a lit¬
more
than 1,000% or at the
more
Sources of Corporate
3.
A
or
|
year
Enterprise.
of Business
per year.
Earnings
.
iPART ONE—The Financing of Business Enterprise.
1.
The Contribution of Investment Banking to the Financing
2.
period
increase for the 10-year
OF THE COURSE
OUTLINE
1953
1948
Enrolment Forms to:
Association
Bankers
$15,375,000,000
14,119,000,000
12,638,000,000
11,387,000,000
10,516,598,000
9,538,832,000
8,944,705,000
8,164,208,000
7,360,070,000 '
6,566,368,000
1954
This course is not available
inquiries
also interest¬
are
1950
550, applicable to
Address
in force
ing and follow:
discontinued.
additional
I Like Best
surance
.
;
from page 2
payable to "The University
ship
Francisco
the
Orient.
service
and
operates regu¬
between
various
ports
San
of
Volume 182
Number 5452
...
15
(479)
The Commercial and Financial Chronicle
For, once the
policy has pro¬
its effect on the 'domestic
of its fluctuations.
Mr. Battel's Devaluation Denial
From
Washington
Ahead
is
probably just
the
time.
any
No
devaluation
defense
measures,
raise
the salaries
of
Senate
their
and
old devices.
their homes
back to
and their return to
recess
debate
the
for
denial
that
the
and
the
would
dome
thousands
Washington
every spring
complained that it
never
additional
needed
who
tourists
of
and
was
flock
because the
space
which
have
been
largely
Bargeron
during
feel
might
increases
of
Truman.
with
better
They
talent.
got
Truman
a
but
won
broken by Dewey by not only getting
ground
executive branch's talent but for himself
There
has
been
cashed
in
on
the
the lead.
»-
had
are
throughout
on
self
a year
•
.
of Con¬
gress on the highway legislation. The President submitted a plan
of modernizing the nation's highways which had been worked out
;by a committee of outstanding men over many months. It had
the support of all the state highway officials of the country and
all except three or four of the State governors.
But the Demo¬
crats in both Senate and House decided this was too much of an
accomplishment to let the President have.
this
Contrast
*
nobility toward itself with the action
they passed
a
grandiosely
•moved to perfect it.
He evolved a plan whereby the highway
program would be carried out with increased taxes on gas, oil,
.heavy truck tires and the stuff that goes into retreads.
He
.persuaded the House Ways and Means Committee to forego its
•jurisdiction over tax legislation and ordered the Democrats on
the House Public Works Committee to write the taxes into its
highway bill, an unheard of procedure.
But then when the bill got to the House floor he could not
hold his Democratic followers.
They carried out his orders to the
extent of killing the President's plan and then killed the whole
They insisted upon their own bill. In the Senate
token measure and in the House Speaker Rayburn
-bill.
the
Whi+e
House
and
and there would be no highway
would
day
very
likely have been different.
linked with the restore-
new
fashion of thought, devalua-
Wilbur Barton Opens
(Special to The Financial Chronicle)
ANGELES.
LOS
H.
is
Foss
now
Calif.
—
Hugh
SiG
,fesPectafcde ofname
flexibility.
Instead
accept-.
defeat, as Sir Stafford Cnpps
ing
did
in
1949^when sterling Parity,
changed from $4.02 to $2.80,
parity would be maintained,
and sterling would be allowed to
depreciate to some extent as a
the
with T. H. Peirsol
Co., 9645 Santa Monica Boule-
&
Barton
is
engaging in
a
secu-
rities business from offices at 2012
Richmond
me
The
menis
ments.
LOS
ANGELES, Calif.—Chester
W.
Cohagan and Frederick Soder
have been added to the staff of
Sutro
&
Co., Van Nuys Building.
SATT
rum
C.
T.AKF
De
PTTV
Loney has
TTtnh
Hv-
formed H.
with offices
in the Beason Building to conduct
c.
a
De
Loney
&
Co.
securities business.
oeiween
between
tion is that under devaluation
hope of
woidd
while
abandoned,
ho
the
return to the previous
a
is
rate
that
nossihilitv
a
there
a
de-
flexible pound
be followed by a recovery.
circumstances prevailing in
of
preciation
Urder
a
present-day Britain such a possi¬
bility would be largely theoreti¬
as
conditions
possible.
is
Butler's
Mr.
be
give Mr. Butler and his advisors
that
realize
to
present-day
ditions
the
his
soeech
applied 20
successfully
"
years ago.
taken
Albert Frank
as
Agency
Chancellor's
the
possibility
tising
as
be
nQ
of
pu^ Qn
out
a
Britain
in
soun(^
a
Chairman
Mr.
account
solution under which domes-
jnfiation
could
continued
be
at the cogt
the
There would be no
for
difficult
and
unpopular
disinflationary measures—such as
tbose announced by Mr. Butler on
07
27
juj
tuf
that
if
«,0r0
were
solution
December,
1953.
During
World
War
h
On
the
basis of Mr- Butler's
statement that domestic improve"?ent ™ust Pre<fde convertibility,
B}ere
no need to take a gloomy
view
Bug even if return
convertibility should be accom-
e
,
II
i n
served
Air
Rnval
.
J
g
]
J
I
John W. Harder
Force
(British)
pilot.
Prior to joining Albert
Guenther Law, Inc. Mr.
advertisement
offer
to
buy
is
any
neither
an
offer
to
sell
nor
a
o
solicitation of an
securities. The offering is
the Offering Circular.
these
of
Frank-
Harder
was a Vice-President of Western
jq-ewSpaper Union, graphic arts
distributors
and dealers in the
aisuTDUiors arm uc*
Panied bF a widening of the limits United States,
This
made only
August 1, 1955
in
•
.
42,800 Shares
July 26, Mr. Butler emphatically
continue
would
Government
the
that
declared
to
maintain
the
NATIONAL SHOES, INC.
exchange parity of $2.80 in exist¬
ing circumstances, and also after
the return to convertibility.
The
Common Stock
this
pledge
noteworthy improvement in
a
sterling.
been
result
of
more
$1
per
Share)
favorable if Mr.
devalue.
Price $7.00 per
the idea of
the same
any intention
Instead, he made a
obscure
reference
Copies
to mar¬
Union,
adding
that
the
International
Monetary
Fund
already recog¬
nized that fluctuation on either
European
Share
at
gins between exchange rates dis¬
cussed
in Paris by members of
the
Value
That effect would have
even
Butler had repudiated
rather
(Par
of the
Offering Circular may be
C. E. Unterberg,
Payments
61
i
—
obtained
from
Towbin Co.
Broadway, New York 6,
———
aa
the Royal Air rorce ^rmsn; as
a
ad0pted
exec¬
joined
agency in
utive,
auowjng sterling to
depreciate.
need
Harder,
advertising
an
this rules
f
o
Board.
the
have-been
basis,
W.
Calkins,
convertibility until domestic
conditions
-
2, 1 955, by
If there can
payments.
131
City, na¬
Aug.
Howard
of improving the
means
a
ba^ance
n
a
nounced
convertibility as a remedy of des¬
pair, to provide an excuse for a
simultaneous depreciation of sterl¬
ing
Inc.,
agency,
was
adopting
of
Albert
of
Law,
Cedar Street, New York
tional
adver¬
rule
remarks
Vice-President
a
Frank-Guenther
sterling, it has become quite obvious that conditions are far from
suitable foit-convertibility.
The
1
The election of John W, Harder
defend
to
now
j
John Harder V.-P. of
into
premature convertibility. In view
of the emergency measures which
be
con¬
different
totally
those
from
NEW ISSUE
Sterling
in
of
course
for
call
devices
ism might lead him to a dash
to
and
time to reconsider this matter,
that Mr. Butler's incurable optim-
had
ac¬
It is to
ponement
converti-
by
Improvement
merely
hoped that the enforced post¬
of convertibility will
be
assurance
no
would
it
celerate world inflation.
nificant than the denial of deval¬
cal.
to
(Special to The Financial Chronicle)
aiiierence
difference
this method and outright devalua-
floating pound
time as disclaiming
H. C. De Loney Opens
to its move¬
rules of wider limits
the
Street,
vard.
Sutro Adds to Staff
under the new
routine
of
matter
was
SACRAMENTO, Calif. —Wilbur
a.
to be known under
tion has come
immediate
Joins T. R. Peirsol
Under the
of convertibility
In
after the debacle the
people, the
turn
legisla¬
President issued a statement
urging the House to reconsider its action.
He said differences
'over financing the program should not be permitted to stand in
its way.
Had he made this statement a day earlier the result
The
margins must be!
What is perhaps even more sig-
out
devaluation of the pound
a
is closely
if they succeeded it could not
plan even though they knew that
-get through the Senate
tion at this session.
Chan-
rule.
In the minds of most
would
Renublican leaders were far
'from blameless. Within the Administration were men who coun¬
selled acceptance of the Democratic plan.
But House Republican
'leaders were insistent upon making a fight for the President's
this
September
.
Devaluation and Convertibility
was
In
in
International Monetary
and Mr. Butler is no excep¬
idea of
•,
.
change
no
gellors of the Exchequer dearly
love being secretive and mysterious,
■
.year.
that
made
be
the
tion from this
with prerequisites is far and few
between.
It may lose its effectiveness a year from now.
It is a
good thing, though, for the incumbents that the election is not this
salary of $22,500
a
and refused to commit himto the extent of ensur-
Fund meets in Istanbul. All
the
where
fluctuation
bility until the British nation has
Parliament
ing
•:
bet it would be
can
stop inflation. Freedom to change
the exchange rate is useful during a period of world deflation, as
a means of isolating the country 3
economy
from the downward
trend of prices. But in existing
From this point of view
that there would
Einzig
only remaining limitation to non-
technical
a
moderate and stable
uation
even
when
Congressional seat and are working up their indignation
salary increase which Congress has voted itself.
You
an effective issue in a rural or urban district
a
over
.
to
of
previous occasions when he • special significance in view of the
was questioned
on the subject of admission that the position has
changes in the status of sterling grown worse, and that drastic dishis
answers
were
evasive.
He inflationary measures have be¬
laid that the Chancellor must have come necessary to put it right,
his hand free in matters of cur- Until now there was a real risk
the
country young and ambitious lawyers, some of whom have served
as
prosecuting attorneys or county judges, who have their eyes
amount,
it
supporting sterling against put its house in order.
This is
of these rumors, if he •„ merely a repetition of previous
issued his denial earlier.
But assurances.
But
it
assumes
a
rency,
belong to
of flexibility
would
extent"
the,
If
moderate,
on
t
convertibility.
effect
would
there
;
Paul
the
Those
after
utmost
the
to
to
return
while
I
this>silence,
notwithstanding
But
■
.
Treasury
e
the
well.
as
strange
have
pounds
t h
new
as
of
gold, lost by
increases for the
silence over the handsome in¬
creases the Congress voted itself, for its quarters and employees.
Indeed, one of the main champions of its voting itself an increase
.was Walter Reuther and the CIO. Certainly it behooved no one in
Congress to raise his voice when Reuther subsequently got what
he calls a Guaranteed Annual Wage from General Motors and
Ford, or when he attempts to apply the same agreement to other
auto companies.
Everybody, it would seem, is living high on the
hog with Congress, instead of setting a lesson in restraint, taking
a
resisted
encouraging to know that the
O.E'.E.C. agreement lays down
that
saved millions
healthy increase under
Dewey, thinking he was in the Presidency in 1948,
substantial increases all around in order to surround
.promised
himself
officials.
>
he
that
Inspired by the big mindedness of Congress, the executive"
branch in the last days of the session moved to get substantial
its
it is
His critics
so.
is
change.
the
past month or
_ofl'ice building should take care of that for decades to come.
for
yond
any
desirable and
were
name.
merely
sterling
of
question of
and additional Senate
a
new
widening
for
the weakness
Carlisle
to
It is not
new
> a
res-
sponsible
have
summer
off center.
the
of
rumors
the
it is
in
be
All these years it has been where
disinflationary
new
July 29 for making
on
d evaluation
ing but some $8,000,000 was voted to enlarge
the Capitol itself for the only reason,
ap¬
parently,
that
the out-of-date school which bepermissible.
This does leave the keves that what was to Britain s
door open for some widening of advantage in 1931-39 would be to
the existing limits of the fluctua- ^er advantage in 1955. They are
tions around. $2.80.' The question as much behind the times as were
is whether the new range will be those responsible for the decision
materially wider than the present of 1925 to return to the. Sold standmargin between $2.78-$2.82. Ifso,'ard at the 1914 parity.
Today
it might mean devaluation under fixed parities are called for, as the
emphatic
an
On
center.
his
on
measures
Washington in Jan¬
top of this, funds were appropriated
not only for an additional Senate office build¬
-
a
depreciation be¬
$2.78 would continue to be
knew
' :'
.
abandoned for
confidence if we
mand much more
ip favor
side of parity
LONDON, England—Chancellor
Butler took the opportunity of the
uary.
•
.
Abandoned
wise
the ill-advised scheme. of
flexibility. * Sterling would com¬
own
employees by $3,000 a year, to increase their
.stationery and telephone alowances and to
provide transportation expenses for two of
their employees
:
.
good
hope that this will give Mr. Butler opportunity to
present-day conditions call for abandonment of 20-year
realize
sterling.
a
if the Government
.
expresses
but the Senators
not mean
Nevertheless, it would be
Concludes in view of emergency sterling \
convertibility remains long way off,; and
largely theoretical.
feeling their oats, voted in the closing stages
to
need
Flexibility Should Be
pounds of gold used for sterling support. Noting under new
thinking devaluation is known under more respectable name
of "flexibility." Maintains possibility of pound recovery remains
-
as
only that,
Einzig reports impression Chancellor's earlier denial of
rumors
might have saved Treasury millions of
of
.
of the lim¬
depreciation
situation, the widening
its
Dr.
well that there is not a Congressional
election this year because a lot of the members
might not come
back.
The outstanding accomplishment of the legislative
body
seems to have been raising its salaries
50%, from $15,000 a year
to $22,500. That's a sizable raise for
anybody
at
duced
'
By PAUL EINZIG
By CARLISLE BARGERON
It
disinflationary
—
N.
Y.
*
'
16
The Commercial and Financial Chronicle...
(480)
there
THE MARKET... AND YOU
By WALLACE
was
It
tion.
little
market
ironic,
was
ela¬
conse¬
quently, that on the stock
splitup news, which in itself is
largely
STREETE
soared
GM
meaningless,
dozen
a
and
half
a
points but did little on the
government's obvious impressed by the snapback dividend which is, or should
concern over the high level of made by Louisville & Nash¬
be, a real development.
ville from the strike of April
consumer borrowing made for
Dividend Hike Developments
and May
a big caution sign in the stock
which was suffi¬
market this week and, while ciently robust so that earnings
Allegheny Ludlum Steel, on
it didn't set off any great for the half year ran com¬ the other hand, was showing
deluge of selling, nevertheless fortably above the similar re¬ disappointment with a divi¬
dend hike that came only to
prices were mostly on the lag¬
sults last year. The stock has
an
indicated dime quarterly
gard side even, in some cases,
been able to stand out on
in the face of good news.
despite rather widespread ex¬
above average strength when
pectations that there was
timid demand turned to the
What's Ahead?
plently of room for larding it
The net effect was to con¬ rails generally.
with either asubsequent
*
*
❖
tinue the guessing over what's
extra or even another raise.
Alleghany Corporation
The
in
for
store
future.
July
encouraging
in
the
only partly
the bullish
was
to
Industrials
side.
list
the
did
succeed
in
reaching a new high and
utilities, after a long lag,
were able to
give minor con¬
firmation to this uptrend in¬
dication.
Rails, however,
tinue to
con¬
way open
to
valid
"confirmation."
breakout threat for the lower
How much of the "chagrin"
actually is the old habit of
action, what concen¬
selling on good news is, of
buying there was
toward special situa¬ course, impossible to deter¬
the face of this
In
trated
two-day splurge
to a new quarter century high
late in June, by a matter of
not even two full points, was
a
Chicago Pneumatic Tool, how¬
again one of ever, was bought when it not
a
trading range lasting for only raised the rate but added
quite a few sessions. It, too, an extra. In short, expecta¬
is a rather narrow band of tions are
high and chagrin is
less than 15 points with even
quick to appear at this stage
the selling that started off of the market.
this week posing no serious
*
*
*
stricted
whether the
leaned
made
tions
and
that
for
re¬
markets
were
dull and
The
industrial average
the
the pattern was
limit.
lag with determina¬
tion, and left the
For
largely narrow,
highly selective.
mine. That there is
automatic
sured and
such
some
selling
seems
in such a
even
as¬
case
Reynolds Metals, which
More Merger Rumors
fulfilled expectations by vot¬
Mergers continued to pro¬ ing a 5-for-l splitup, it wasn't
vide as fruitful a field as any¬ long before profit-taking ap¬
thing else around. The many peared to clip the issue for as
combinations—largely in the much as a dozen points in one
rumor stage—that had a bear¬ session.
ing on market action included
Chrysler-Electric Auto-Lite,
Most any stock that has
as
retreated
average
brief
sojourn
threatened the
after this
and hasn't
peak seriously
since.
*
a
*
*
-
■
.
It had been thought, par¬
ticularly since so many of the
Blue Chips had worked their
way down to or below a 3%
yield, that the bargain hunt¬
>
Lowensten
-
Reeves Brothers,
forged well past the 100 line
is automatically a split candi¬
Stores
and
Georgia Pacific date, apparently. One of the
carrier section for their next
interest in higher-yielding is¬ Plywood-International Paper. more crucial meetings at
One or other of these com¬ which such action is
sues of
expected
quality. Yet the aver¬
binations
could
usually be is that of Standard Oil of
age has held in a 10-point
counted on to show life except
Jersey today. With the mar¬
range since early in April.
that Chrysler and Auto-Lite ket
in
what could be de¬
Lately the threat has been of
had a joint runup in one ses¬ scribed
as
a
delicate condi¬
breaking out of the range on
sion that not only lifted both
the downside, which would
tion, the high hopes built up
into new high ground,
but around specific issues set up
definitely chill sentiment.
helped turn the entire market psychological minefields
An Above Average Rail
from its irregular path.
which could alter at least the
ers
Melville
would have to turn to the
Few
of
the
market
mentators have been
among
the rails to
extent
for
Shoe-Edison
❖
com¬
scouting
great
any
recommenda¬
*
Bros.
*
near-term
Dividend action resulted in
somewhat
mixed
conse¬
Where a raise had
tions and the few that have been generally expected, as in
been doing so have been most the case of General Motors,
new
quences.
ket and
course
of the
mar¬
consequently have to
be watched with
a
concentra¬
to
the actual
One of
proportion
meaning of the
action.
the
decisions
many
S.
New
has
hit
St.
fraternity
at¬
inter¬
refusal
Court,
the
of
sitting
in
York
City, to vacate a tem¬
porary injunction restraining Al¬
leghany Corp. from completing
its preferred stock exchange plan.
A
hearing
held Monday of
Alleghany's petition
Judge Harlan of the U. S.
Supreme Court to vacate the in¬
junction. No decision in the mat¬
this week
was
on
to
ter had been made at this
The
decision
Court
came
as
There is
announcement
is under
no
circumstances to be construed
as
some
hint that the
an
offering of these Securities for sale. The offer is made
only by means of the Prospectus.)
NEW ISSUE
reluctance of American Tele¬
the
shares
per
share)
Little Star Uranium
(A Wyoming Corporation)
Price 15
Copies of the Prospectus
cents
ore
some
$650,000,000 is
tied in with uncertain market
action. It was
Co., Inc.
Per Share
obtainable from the undersigned
40
SECURITIES CORP.
Exchange Place
New York 5, N. Y.
BOwling Green 9-0636
stock
offer to
new 6%
an
($10
value) for each share of the
$5.50 preferred.
Following ap¬
par
the plan and the new
stock by the ICC on
June 22, 1955, company through
its
financial
agent" distributed
about 900,000 shares of the new
proval of
preferred
obtain
the opposing
managed
to
but
preferred,
group
order from the District
an
something of a shock to the com¬
pany's stockholders, and Wall St.
analysts
generally,
considering
the fact that the proposed issue
Court
after
$5.50 preferred and new 6% pre¬
restraining company from
issuing an additional 400,000
shares, and transferring the shares
already distributed. By a 2-to-l
decision, the District Court on
of new 6% convertible preferred
July 21 refused to lift the re¬
stock
(offered in exchange for
the old $5.50 preferred), had been straining order, and as a conse¬
company
has been se¬
(1) approved by holders of over quence
97% of company's common stock¬ verely handicapped in proceed¬
holders; (2) approved by the In¬ ings with its normal business.
terstate
Commerce
company's
Commission Also, holders of the
thorough and exhaustive
a
consideration
the
holders of
pany's
of
and
case,
the
all
preferred
That
4,637,797
stick
common
thwart
such
the
It
of
can
desires
of
might
be
noted
consummation
plan,
opinion of the vast major¬
ity concerned, would materially
improve 4be position of the com¬
mon
stock and its net asset value.
The
healthy
value of the common
it
their
heads
analysts
in
wonder
shaking
and
be¬
wilderment.
Alleghany Corp. has had a long
interesting history. It was
originally formed by the late Van
Sweringen Bros, back in 1929,
primarily as a holding company
and
invest
to
in
railroad
Large interests
that
securities.
acquired
were
at
time in
Chesapeake & Ohio,
Plate," Erie, Pere Mar¬
quette, Missouri
Pacific,
Great
Northern, Kansas City Southern
"Nickel
other
and
railroads.
severe
in
the
shrinkage
values
With
1934
the
sought
pany
a
in security
early 1930's com¬
reorganization in
Section
under
77-B
the
of
Bankruptcy Act. Subsequently, or
in
1937, Robert R. Young and
Allan P. Kirby acquired control
of the company. From then on,
the
new
interests
progressive
through sound
judi¬
management,
investments
help of rising
remarkable
and
markets,
results
in
with
the
achieved
rehabili¬
tating the company's finances, reu c i n g
debt,
simplfying
the
complicated capital structure, and
steadily increasing the company's
assets
and
the net asset value
of
the preferred and common shares
the
in the
lawyers
and
passing
in
of
large majority of the com¬
pany's stockholders has not a few
a
mid¬
in
it
as
that
shares
and
"suspended
are
were, pending final
adjudication of the litigation.
air,/'
stock¬
of the
outstanding
will
ferred
stock¬
minority
a
holder holding only .002%
company's
in
facts
(3) approval by
97% of the com¬
over
$5.50
holders.
Telephone that
was. given a
good share of the
credit for
starting the market
break of 1946, when the first
of the postwar
sues
the
was
debenture is¬
greeted dourly and
entire
market
turned
down with conviction in tune
deficit ($70 million)
inherited by
1937.
the present management, in
1944, all of the $76.4 million
By
of
Coll. Trust
5s
had
been
elim¬
inated, and debt today is down
only $21,5 million. Substantial
blocks of the old $2.50 prior pre¬
ferred and $5.50 preferred stock
were
acquired by the company.
to
Whereas the
1938
common
stock at the
$99 million
"under water," or to the tune of
year-end
was
with
Telephone. Even this
week, the purely routine ac¬
tion of filing the
registration
GLOBE
through
exchange 10 shares of a
convertible preferred stock
became
in
advance
market
stock, when
the
plan
apparent
would
be successful, was
testimony to that fact.
Of
special
analysts
litigation
dissenting opinion
followers
was
the strong
of
ample
to
interest
and
this
of
Judge Hincks, the able jurist
many railroad analysts may
who
had
recall
jurisdiction
the
over
Haven"
"New
reorganization, and
who
has
had
much
experience
with
railroad
matters.
Judge
Hincks, among other things, point¬
ed out
"The extraordinary
and drastic remedy of injunction
is not the product of a slot ma¬
chine into which any disgruntled
.
.
.
stockholder
insert
can
in
issue
not
does
a
nickel. It
every
case
as
of right merely to preserve the
status quo pending final determi¬
nation
the
of
merits.
function merely
or
malice.
discretion
issues
It
the
of
is
Nor
its
to support hopes
only
at the
chancellor
on
a
irreparable injury.
And
that injury must be more
than a vague statement of a re¬
mote and contingently potential
showing
harm."
of
Also
...
much concerned by
"I
am
not
so
the possibility
that the proposed stock issue may
in the kmg-range
future turn out
to be disadvantageous to the com¬
which
(Par Value 10^
preferred
$5.50
phone directors to get on with outstanding. 1950 was something mon stock. After all that is essen¬
of a mile-stone in the company's
the specifics of
tially a question of business judg¬
floating the
history, for that year marked the ment primarily for management
latest, and biggest debenture elimination of the huge capital
issue of
5,000,000 Shares Common Stock
of
outstanding,
6%
and
year-end, company
plan for eliminating
remainder
of
the
136,744
a
stockholder
d
Financing Delay
1954
District
surprise
a
At the
announced
writing.
the
of
by March 19, 1954 had a net asset
value of $1.48 per share.
in
has
average
recent
District
court
Wall
which
and
than
more
the
is
U.
unusual
brokerage
years,
tracted
est,
most
which
the
and
cious
tion that is out of
ATT
(This
Thursday, August 4, 1955
ment
statement
called for
on
the
financing,
without indicating the timing
or terms, was
enough to give
the
stock
one
of
its
harder
nor
their
a
the
holders,
revealed
that
reexamination of
position in the stock.
[The
expressed in this
necessarily at any
those of the
They are presented as
views
do not
coincide
Chronicle.
those
shock
anything
article
time
one-day setbacks. There cer¬
tainly was no surprise ele-
Here
with
of the author only.]
normal
the
management
decision
the
and
been affirmed
of the
by
a
mi¬
course
must
has
accept.
its
made
decision
has
large majority
voting stocks and approved
by the ICC."
What the final outcome will be
is
a
matter for the courts to de-~
cide.
To
would
side
to
in
nority stockholders
the
seem
of
ordinary layman
to
justice is
Alleghany Corp. and
harried
stockholders.
A
it
the
on
its
good
guess
is whatever the outcome of
this
particular
will
not
it
controversy,
prevent Mr.
Young and
his associates from effecting fur¬
ther
financial
progress
and
im¬
proving the position of the com¬
pany
and its security holders.
-
Number 5452...The Commercial and Financial Chronicle
Volume 182
the
Elmsford
bank
and
Andrew
shares likewise with a par value
of $25 per
share). The additional
Wilson, Chairman and Joseph E.
Hughes,
President
of
County
Trust,, the agreement calls for
exchange
of
three
shares
County Trust stock for each
10,000 shares are offered
shareholders of the trust
an
of
of record
of
on
shares.
two
banks
charter
Ford
H.
Arnold
Jones, James E. Ness,
Nichols, Stephen P.
H.
President, remaining
made Assistant
dents
the
of
Vice-
Irving
pany of New
York.
Tiust
with
tional
the
are
bank's
Banking
Com¬
Messrs. Nich¬
ols, Pendias and Zutter
ciated
Presi¬
asso¬
Interna¬
Division.
"Mr. Patten had also been First
Vice-President
the
ment
Personal
in
the
Ness
branch
is
Trust
offices
connected
A.
At
the
Clark,
John
D.,
motions
The
named
-
The
announced
^.pro¬
July
on
.
if
v.
were
Empire
York
■ 'V
if
Trust
City,
Co.
/.■
Bank;
a
Inc.
of
if
promotion
the
of
officers
Com¬
two
Trust
pany of Garden City, Long Island,
Y.
to
Vice-Presidency posi¬
the
artd
officers
new
installation
has been
of
two
announced
by Frederick Hainfeld, Jr., Presi¬
dent.
All\of
sume
theiit
the officers will
as¬
positions at the.
new
Long Islana\Trust Company Main
Office in Garden City.
W. How¬
Lowe
former
and
George
G.
Dean,
Assistant Vice-Presidents,-
commercial
bank,. have been promoted .to positions
plans to move its head office\fto as Vice-Presidepts.
Edmund F.
new quarters.
The company, now Needham becomes an Assistant
120
at
has leased the
equiva¬
Broadway,
approval
ing
tional
the
merger
agree¬
authorities
and
banks- All
the
-lor
the
Thomas
It
O'Rourke,
V i
a
and
of
the
Elmsford
Leonard
Morey
member
of
will
The
County
3
lower
level
well
as
the
and
as
the first
upon
completion of the merger.
additional
second-floor
Bochart
is
of
one
the
members of the staff of
hav¬
younger
house the operating
departments.
The executive of¬
officers at Long Island Trust,
fices
Senior Clerk.
will
space,
will
The
be
third
the
on
floor.
will
level
lower
second
ing
joined
in
it
be
May,
if
if
1953
as
In
to vaults and archives.
over
the
bank
moved
office
from
580
1950
town
to
enue
its
Av¬
West
7
quarters at
new
up¬
Fifth
51st Street.
if
if
bank
President, Henry A. Patten, died
City on
at his home in New York
July 31, after
was
84 years
the
Corn
brief illness. He
of age. President of
a
Exchange
Bank
from
Company
to
1929
had held the post
Trust
he
1932,
of Senior Vice-
was noted in the New
"Times" of
Aug. 1, from
President, it
York
in
tern
Philadelphia,
Mr.
Pat¬
began his business career at
as an office boy,
in New York
18
"Times"
the
In
notes.
paper continues:
"Two years later
starting
banker,
Cashier
of
1952.
retirement in
until his
1932
Born
New
"In
lost
Place Bank
Astor
the
Mr.
for
He managed
named
a
Place
Bank
With it and its
remained
Patten
the
next
53
years.
various branches
un¬
Vice-President
a
post he held
in
12 years.
"In
May, 1929, the Corn Ex¬
Bank
became
a
trust
company,
the
name
becoming
Corn Exchange Bank Trust Com¬
change
pany.
time
At that
there
was
a
change among the officers. Wal¬
ter E. Frew moved from President
to
Mr.
and
Chairman
Patten
a
of
was
Director.
following
a
is
the
Board
made
and
President
Three years later,
second
of
The
County
White
Plains,
of
of
M.
Barry, formerly
the Peekskill bank,
Vice-President of the
a
en¬
George V.
Cashier
of
is
now
an
larged institution and
formerly
Bishop^
Peekskill
National,
Assistant Treasurer of The County
Trust Company.
Robert E. Demp-
Theodore Hill, Jr., W. Milton
Lockwood,
Bernard
G.
Gordon
and Constance Curry Barham, for¬
sey,
merly directors of the Peekskill
bank, now comprise an associate
of directors for the Peeks-
board
kill
office.
plated.
the
No
other
realignment.
Mr. Patten became a Senior Vice-
proposed
The
institutions
two
of
name
changes
in
the
merger of
under
the
Peekskill
The
and Trust
National
Bank
Company's total assets
$7,700,000 and deposits
of
about
$7,200,000
increase
County Trust totals it is stated to
approximately
$342,900,000
and
$307,600,000 respectively.
With
Peekskill, The County Trust Com¬
pany now has 35 offices serving
of
about
❖
First
N.
National
Y.
with
Company
has
if
agreement
been
if
to
Bank
The
of
The
Elmsford,
County
Trust
of White Plains, N. Y.
approved
by
directors
of both
on
banks, it was announced
Aug. 3. Bearing the signatures
of Sigmund M. Morey, Chairman,
and James T. Scott, President, of
shares
was
neces¬
-•
•
Robert J.
if
rectors.
James
chairman
the
board
T.
Scott
will
Camden
Trust
meeting
National
into
Company
of
elected
group.
National
qua
in
and
charge of its
Bert
L.
National,
of
Oaklyn,
board of directors of First
National.
Melvin Olson becomes
Vice-President
a
bank
and
former
Cashier,
sistant
of
Thomas
the
H.
becomes
Vice-President.
changes in personnel
Mr.
Hamilton., also
change in the
bined
merged
Neathery,
No
other
made.
were
announced
of the
name
institution
As¬
an
to
a
com¬
Chautauqua
National Bank of Jamestown.
The
total assets of the combined bank
are
000
reported in
which
largest
excess
of $47,000,-
it is said makes it the
commercial
bank
his
of
taken
the
who
will
become
and
ecutive
Committee
Trust.
Camden
also
ers
member
bank's
plans for the
cated in
addition
merger
fit Life Insurance Co.
Under
the
,which
will
if
if
Nanuet
72,500 shares is to be of¬
for sale at $30 per share.
fered
shareholders
Present
will
Trust
right
to
stock
of the
Nanuet, N. Y., which
increased
on
June
of
20
its capital from $75,000
to $100,000 by a stock dividend of
$25,000,
capital
has
since
the
to
by the sale of
amount,
the
added
extent
new
of
stock
to
to that
capital
^
Edward
^
preemptive
All preferred
Camden Trust
L.
Clifford,
President
Worcester,
Mass.,
July 26 that at
ing
of
the
a
announced
special meet¬
shareholders
of
the
Com¬
still outstanding is being re¬
tired. The enlarged Camden Trust
'Company
will
in
sources
An item
bearing
capital re¬
$12,500,000.
of
the proposed
on
appeared in
of June
sue
have
excess
consolidation
30,
our
is¬
2998.
page
The
if
Newark,
375,000
$4,500,000
to
June
the
whereby
increased
was
fective
.plans
J.
N.
amount
from
became
Details
28.
$3,-
ef¬
the
of
the capital by
45,000 additional
shares of its capital stock of $25
par value at $91 per share on the
.the
enlarge
to
issuance
of
basis
of
three
shares
these
columns June 9. page 2650.
one
share
new
held,
if
for
each
of
as
Camden,
of
&
J.
N.
National
the
and
Bank
President
9
effec¬
became
sauken
the
our
tion
issue,
five
(divided
into
real
broker,
as
estate
and
The
having
the
As
the
C
Davey,
Senior
Vice
President
Cashier of the bank.
and
-
if
As
of
;!s
June
National
sis
10
the
Bank
N. J., reported
Little
of
Falls
Little
Falls,
capital of $260,$200,000 by
the sale of $60,000 of new stock.
In
a
increased
000,
from
issue of June 9,-page 2650
that the bank had en¬
our
noted
we
larged its capital from $150,000 to
$200,000 through a stock dividend
of $50,000.
*
The
the northeast
Chestnut
to
be
if
*
26-story office building at
of Broad and
corner
Streets, Philadelphia, is
known
the
as
National Bank
Philadelphia
Building instead of
the Lincoln-Liberty Building. The
change
of
July
on
name
1
by
announced
was
Norman T.
Executive Vice-President
Hayes,
of
Clv-
Realty Company. The prop¬
erty was purchased by the bank
through Clymer Realty, a whollyowned subsidiary of The Phila¬
delphia
National,
from
John
Wanamaker
Since
has
in September,
1953.
purchase, the building
the
been
lower
while
floors—including
the
sub¬
the
level—are under¬
rebuilding
for
the bank.
Upon
completion of the banking floors
toward the year-end, The Phila¬
concourse
extensive
by
occupancy
delphia
will
National
Office
Main
its
move
what
into
are
ex¬
pected to be Philadelphia's most
modern
new
banking
The
quarters.
offices will give Philadelphia
National
200-foot
a
frontage
and
Street
Broad
on
100-foot
a
The
frontage on Chestnut Street.
Penn Square.
if
if
:!«
The
National
Darby
Upper
Darby, Pa. has in¬
Bank of Upper
capital (as of June 30)
creased its
from
$1,000,000 by
to
$968,750
a
$31,250.
stock dividend of
our
the
Establised
1856
First
noted
offices
Treasury
the
modernized
completely
air-conditioned
and
in
H. Hentz & Co.
consolida¬
surrounding
a
insurance
and
Edward
Members
in
Stock
Exchange
Cotton
York
New
Exchange
Chicago
Depart¬
Board
New Orleans
consolidated
and
'
Inc.
Exchange,
Commodity
com¬
Exchange
Stock
York
New
American
reports
Kearny
As a
Penn¬
become
of
banking
and
munities.
bank
9
the
B.
son
gives the First Camden Na¬
tional
ment
has
Office
National.
June
in
2650.
merger the
page
National
Pennsauken
Na¬
Plans for
noted
were
issue,
of
of
bearing his name; Wil¬
Leavens, Jr., President
of
Wilkata
Folding
Box
Co.,
Kearny; John A. McKeon, Harri¬
company
of
July 1 under the charter
merger
result
Newark
Co.; William A. Kee-
Trust Com¬
and title of the First Camden
June
of
building extends through to South
if
Consolidation of the First Cam¬
pany
Corpora¬
given in
were
if
Trade
of
Cotton Exchange
exchanges
other
capital stock of
$2,234,375, in shares of 357,500 of
that
000,000
the
to the
Leggett' C.
are
President
Cloth
going
increased capital
National State Bank *of
the
-of
#
recently
common stock of the par value of
day, that shareholders
had approved the proposal to in¬ $6.25 each; surplus of $3,015,625
crease
the company's authorized
'and undivided profits of not less
capital stock from $2,750,000 (di¬
.than $418,000. The terms of the
vided into 110,000 shares with a
consolidation were noted in our
par value of $25 per share) to $3,-
bank
of Newark.
Finance
directors
Campbell,
Wire
way
if
'
Camden
*
Camden
a
acquire.
its .Camden
$100,000
thereby, on
July 20, having become $200,000.
on
of
pany
the
Bank
of
mer
have
tive
if
National
the
of
ance
tional Bank & Trust Co.
The
au¬
share
off $901,000
pay
Camden
holders of Oaklyn National Bank
to effectuate the merger. The bal¬
indi¬
2219.
plan
a
recapitalisation
bank
sharehold¬
increase
Pennsauken, N. J.
12, page
Ex¬
stock by an ad¬
100,000 shares, 27,500 of
will be issued to share¬
The
were
issue of May
our
to
Morris
the
of
to
Pennsauken
in
branch
common
ditional
with
Falconer.
of
Trust
voted
South
and
12.
$4 each, and sale of $500,000 pre¬
ferred stock to the Mutual Bene¬
had
Vice-President,
Director
den National Bank
Dayton,
to
seven
every share held, issu¬
87,000 additional shares at
of
ance
action
Trust offices
to
10,
National will operate
Oaklyn Office of Camden
headquarters in Chautauqua
County.
Offices are operated in
Westfield, Cherry
Creek,
and
Jamestown
bank
favorable
Trust Company. The new
will
be
headed
by Mr.
of the advisory board which
been
constituted
from
the
has
J.
Camden
as
Chair¬
former
N.
Trust
15.
the Oaklyn
office.
becomes
ap¬
the merger. After the merger,
which will increase the number
Chair¬
was
Aug.
likewise
the Board of Directors of
of
man
Hough, who
29,
on
Vice-President
Falconer
Camden
the
shareholders
director of the Chautau¬
a
July
on
of
Bank
Company
Concurrently,
J. Boyd (Morris, President of Oak¬
lyn
National,
announced
that
be
in¬
an
for
New
Kiesling, President of
proved the merger of the Oaklyn
di¬
of
it
which
recapitalization
stock
effective
associate
in
thorizes distribution of
>'<
,
of
merge
or
Elmsford
of the Worcester County Trust Co.
An
at
special
directors,
Mackie,
Robert
Sigmund
Westchester communities.
22
full
The
M.
Morey,
John
M.
Rieber, James T. Scott, William
Scott, 2nd, and
Charles
A.
J.
Yaeger, will be members of the
Elmsford
Brady,
r
County Trust Com¬
of White Plains was referred
our July 21 issue, page 284.
to in
separate identity and be¬
associated
David
President
now
through merger the
Office
Company
Y.
pany
the first branch of the Corn
successor
1917,
N.
July
personnel, it is stated are contem¬
he became a
as
Assistant
Astor
Exchange Bank.
til
part that
York.
1899
its
came
the
of
N. Y. became
Trust
York
New
former
on
Peekskill National Bank
Company of Peekskill,
Trust
Peekskill
if
A
At the close of business
29, The
and
in
date
the number of bank di¬
rectors from
liam
man
given
in
gan,
First
if
sub¬
that
Mr. Allen also announced
crease
Camden, N. J. has announced that
shareholders of the company at a
Other
Thomas
of
also stated:
was
Reconstruction
the
Charles
Mr.
the
Bank
approved
was
tion.
.
Secretary
ment.
News"
of
Aug.
p.m.
if
•
floor,
payable
are
,
the first
at
National
dent, announced on July 21 ac¬
cording to the Newark "Evening
posits.
a
on the official staff and ^Organized in 1926, the Elmsford
Bochart, AssistanKTrustf .bank reported total assets of $4,lent of three additional floors in Officer.
The promotions are ef¬ 393,738 and deposits of
$4,017,944
the new 27-story air-conditioned
fective immediately.
Mr; Lowe on June 30, 1955. On the same
office building being erected at became
associated
with
date, The County Trust Company
-Long
20
Broad
Street
by [ General' Island Trust Co. in April, 1944, as showed total assets of
$323,370,550
Realty & Utilities Corp. next to Assistant Secretary. His banking and deposits of $297,453,536.
the New York Stock Exchange, it banking
career
began with the
❖
*
is announced jointly by Henry C. Bank of Valley Stream in 1926.
Completion of the merger of the
Brunie,
President
of
Empire In 1929, he joined the staff of
First National Bank of
Falconer,
Trust, and Edmund F. Wagner, Springfield Gardens National
at Falconer, N. Y. with the
CnauPresident of General Realty. The Bank,
attaining the position of
tauqua National Bank
&
Trust
transaction
will
give
Empire Cashier, and in 1943 became ViceCompany of Jamestown, N. Y. a
Trust 51,000 square feet of space. President
of
the
Little
River
Marine
Midland bank, was an¬
The
lease, for a long term of Bank & Trust Company of Miami,
nounced
on
July 29 by Charles
years,
provides the 53-year-old Fla. Mr. Dean has been with the
Teschner, Chairman of the Board
banking house with 20%
more Long Island Trust for
19 years,
and John D.
Hamilton, President
space than
it now occupies on starting in May, 1936, as a Teller of
Chautauqua
National.
This
several widely separated floors at and rising through the ranks to
merger
follows .acquisition of a
his new position.
120 Broadway, where it has been
Mr. Needham
controlling interest in the First
located since
1915.
About 6,000 started with Long Island Trust Co.
National Bank by Marine Midland
as a
Transit Clerk in September,
square feet at street level will be
Corporation. C. Elmer Olson, for¬
devoted
to
the
main
banking 1946, became a Teller, and in 1950
mer
President of the First Na¬
was
made
Assistant
floor.
The entrance
will
be on
Supervisor
tional
of
Falconer
has
been
Broad Street.
The remainder ot of the Installment Loan Depart¬
entire street floor and the
share
new
Trust
Company board of directors
share
price of $60 per share.
specified that all subscrip¬
is
the
office.
become
addi-
one
each
of
recapitalization
sitated by the continuing upward
trend of the bank's loans and de¬
County Trust Vice-President in
charge
for
15.
In an¬
nouncing the results of the special
meeting on July 26, President
Clifford stated that the sale of
Ex¬
e-P resident
c
each
before
bank.
now
This
for
Hudson
special meeting of stockhold¬
Fred W. Allen Bank Presi¬
a
ers,
are
tions
Elms¬
consolidated
F.
share.
per
plan
West
Harrison, N. J.
scription
ford bank's personnel will remain
with
at
presently
held.
Eleven
required to subscribe
rights
stockholders
of
of
company
business
of
received
j-ight
stock
pending
by State and Federal bank¬
both
of
of
weeks,
July 26, at $60
shareholder
and
name
County
Trust
expected
to
take
Cashier at Elmsford, will become
Island
Long
the
the close
A
the
the
provide $600,000 additional
capital. It is announcecd that each
the
of
The
Company
is
within six
ecutive
if.
S;
The
ard
New
of
Savings
of
Director of the Standard Safe De¬
tions
time, J amies
E.
Lee, and
Secretaries.
were
Per¬
One W<
at
MacNeary
26, 1955.
Mr.
the
same
Robert
Assistant
and
with
sonal Trust Division
Street.
business
Director
a
posit Company, and Henri Bendel,
engaged in the develop¬
of
Side
West
Mr.
Jones is
and
under
of
place
ment
Pendias, and Jean D. Zutter have
been
the Board
on
of Directors.
Consolidation
at
to
will
The First National Bank of Elms¬
ford
17
(481)
'
120,000 •June 9 issue, referred to above.
N.
Exchange Bldg.
Cotton
Y.
YORK
NEW
Chicago
Miami
Hollywood,
•
Detroit
Beach
Fla.
Geneva,
•
•
4,
•
N. Y.
Pittsburgh
Coral
Gables
Beverly Hills,
Switzerland
Amesterdam,
Holland
CaL
The Commercial and Financial Chronicle
(482)
18
public debt,
Continued from first page
Schumpeter,
enormously disproportionate part of which
an
is in short-term form.
The
is true of
same
specific criticisms of the first session of the
Congress and of the legislation proposed to it by the
President. "Teddy" Roosevelt and Woodrow Wilson were
84th
in their time
regarded as "liberal" if not "radical" in their
political philosophies. Jefferson was hardly
economic and
a
"crusty conservative" in his day.
fiscal
national
the
and,
Yet who
can
believe
Judged by such standards
of these eminent statesmen could have examined
that any
the Administration wins any
nor
picture of today without shuddering,
from first
does not
and
medals.
not
page
other
The N.A.M.
least as great—social security, "insur¬
ance," "guarantees" and the like! And all these obligations
the
give it any consideration at all. It spent a great deal
arguing about how a vast road building program
was to be financed. There were proposals that it be paid
for with borrowed funds; others thought it should be paid
for somehow "outside the budget" and without enlarge¬
regular national debt (precisely how is not
even yet quite clear); still others came forward with plans
which they convinced themselves could be termed a "payas-you-go" program. Yet, how easily this burden could
have been carried had the Administration and Congress
of the
ment
joined hands to curtail outlays for all sorts of things which
we need far
less thaw we do more and better roads! No
in
forthright
a
subject which
ranted critical appraisal."
on
war¬
a
which
is placed after the
word," reads:
the
"In
tional
under
economy
conditions, monetary
the
in
"Fore¬
requirements
is it only by
ad¬
requirements
those
to
United
And
able
of gold
States should
conclusions is given
below,
well-established
further
the
as
of irredeem¬
use
final
its
reaches
currency
backbone
of
nation
a
are
—
of
the
pamphlet:
-
-
■
The chief characteristics of
\
N.A.M. pamphlet
of
use
stages, as it tends to do unless
abandoned, the mass of people—
the
for
6.
to
mankind
irredeemable
are
exceeded perhaps
those caused by wars.
a
to
answers
support
summary
acteristics
brought
by
na¬
current
uses
only
The
form, from repre¬
sentative samples of major char¬
the
fact is that
interest of the
best
disasters
through
currency
The "Policy Statement on Gold,"
bers
of time
Association
position
in
Currency
Would Have Been Easy!
Congress seems to view this situation with re¬
markable indifference—assuming that most of its mem¬
these
Study and
Irredeemable
rising!
Yet
and
questions.
our
still
well-conceived
a
the
meet
science:
herence
national finances. A conventional national debt now run¬
ning in sight of $300 billion, and a total of various
provide
correctly-grounded
basis
for the action taken by them.. It
a
that we obtain correct
types of debt at
basis
the
on
In the opinion of this author the
pamphlet endorsed by the Board
does
manding the most sweeping kind of renovation of our
of Directors of the
of pertinent evidence scientifi¬
cally treated
of
Continued
Board
N.A.M. did not act
they in positions of responsibility, without de¬
were
The
5.
these,/ neither Congress
as
his Capi¬
trends, in
Democracy
(Harper and Brothers Publishers,
New York, 1950), 3d edition.
policy which seems to look the other way when
banks go overboard on mortgage and consumer loans.
Yet these attitudes are clearly influenced by political fears
or inclinations. At the very least, both Congress and the
Administration could make it unmistakably clear that
neither the Treasury nor the Reserve authorities would
be left to the political wolves if they do what plain commonsense and prudence suggest.
We See It
As
most scholarly stu¬
a
such
talism. Socialism, and
serve
number of
of
dent
Federal Re¬
a
Thursday, August 4, 1955
...
*
characteristics
pamphlet
unscientific
of
which
Outstanding
the
its
(1) The
the
reveal
qualities
liability
consist
following:
and
unre¬
chiefly
creation
tent issues
the
the
of
non-exis¬
of
the misstatement of
or
basic issues involved.
con¬
(2) The use of data which mis¬
We
are
in an intermediate stage of leads.
are
(1) to serve as the basic re¬
that process; and anyone dealing
(3) The omission of pertinent
serve against the liabilities of the
carefully and competently with and fundamental considerations.
hanking system, (2) to be a limi¬
this state of
affairs
should
be
(4) The
misstatement
of
the
tation, as established by statute,
able to
recognize that fact.
No functions of
on
the
a
gold standard.
expansion of these lia¬
Committee of the N.A.M. can alter
bilities, and (3) as the means of
(5) The failure to separate the
these lessons by the issuance of
settlement
of
international
bal¬
well
grounded
contentions
of
a pronouncement which is in con¬
ances."
scientists from
argu¬
flict! with
pertinent
facts
and monetary
ments employed by non-scientists.
The pamphlet carries the fol¬ well-established
principles.
lowing subtitle: "An inquiry into
(6) The
resort to
generaliza¬
the function of gold, and its re¬ 4. Did the Board intend to throw
tions which are not supported by
the N.A.M. into the currently
lationship to money and credit,
fact.
with conclusions and policy rec¬
popular pro-Socialist movement
tinue
the
on
present bases, which
seriously injured
ruined.
or
-
an approach!
Several of these Presidents listed above—possibly
even
one
suggested such
all
special friends of the farmers. The country
was made up mostly of farmers in the early days, and in
more recent times few politicians operating upon the na¬
tional scene have felt it wise not to take special pains to
cultivate the farmers who at all times have many votes to
of them—were
ommendation."
states
the
Contrary to popular impression, politically inspired
cast.
largesse to farmers began long, long before the New Deal
came upon the scene, and even before Wilson came for¬
ward with his agricultural financial measures. Yet it re¬
mained for the founder and finisher of the New Deal to
announce
a
policy which embodied the principle that the
farmer himself
to decide what the remainder of the
was
country was to do for him. And, while President Eisen¬
hower has taken
some
courageous
steps in the direction of
bringing this situation under control, his measures and his
suggestions have hardly even made a beginning. Yet the
agricultural effort in Congress this year was not dis¬
mantlement of the cumbersome and costly farm program,
but toward making it the most cumbersome and the more
costly.
Social Security Costs
committee
lows
1954
the
so-called
social
security system was
revamped in such a way that a staggering number of bil¬
lions of dollars in additional liabilities were assumed by
the taxpayers of this country. Few realize that the present
value of accrued liabilities under this program today is
of the order of magnitude of our total national debt as
reported by the Treasury. Yet such is a fact. These truths
would have made even Jefferson, Wilson
or
"Teddy
Roosevelt" gasp and stare. Yet the drive in the session of
Congress just come to a close was not toward amelioration
of this situation but toward adding substantially to its
burdens. And there are many who believe that such steps
as these will be taken next
year to help at the polls in
Again, during the past half year Congress conducted
investigation of the ''stock market"—chiefly,
course, the New York Stock Exchange, where manyextended
believed
that
committee
committee
were
there
on
financial and
ernment
had
excesses
could find
tions of misbehavior
was
no
were
aware
occurred.' The
investigating
evidence of abuses.
No sugges¬
made. Whether members of the
that the
cause
of whatever trouble
the
"Big Board" was to be found in broad
other policies pursued by the national gov¬
itself,
have
of knowing, but the fact
is that, not being able to
pin anything on the Exchat%e,
they came forward with a plan to put over-the-counter
dealings in a still more restrictive strait jacket than it
already has to endure. This effort failed this year, but a
basis for its adoption next
year was laid, at least so its
we
proponents believe.
It
do,
or
is
by Dr. Harley
Lutz, government finance con¬
to
the
Association, and
sultant
its
development
guided
members
largely
was
questions
by
committee's
the
The
evolved
advisory
in
group."
the
of
Money and
Credit Committee, of the subcom¬
tee
and
Board
into
N.A.M.
of that Commit¬
the
throw
to
was
the
currently
popu¬
lar pro-Socialist movement in
the
then
country,
nouncement may
furtherance
Board's
this
pro¬
be helpful in the
such
of
intent.
An
irredeemable currency
is a neces¬
in the socializa¬
In so far as this
sary instrument
tion of a people.
Did
2.
this
Board
the
of
Directors
speak for the Association?
An
arises
whether
is
authorized
of
bers
issue
a
the
of
N.A.M.
such
the question still
duced,
to whether such
as
vital
if
And
that
as
a
An irredeemable currency
unsound
authorized to issue
was
statement
for
speak
pro¬
remains
Board could
the full
bership unless it canvassed
member
consent.
fictions
fn
One
every
unanimous
the mischievous
of
is the practice
organizations of
country
officers
claiming
for
mem¬
which frequently appears
this
by
obtained
and
of
that
they are speaking
have not been
who
people
is
it
and
currency;
dishonest
an
is
a
not
no
way
C
altogether clear just, what Congress could
at least should do, about the management of the
them
the
redeemable
currency
the
Board
N.A.M.
was
of
their opinions.
If the National
Manufacturers,
by
of
Directors
not
expressing
Association
its
of
organiza¬
tional
procedures,
speaks
offi¬
cially through the statement pre¬
pared
its Money and Credit
Committee, then we have in this
country a new element of danger
added to the very great dangers
in which our people are already
by
3.
The
Board's
pronouncement
is
It is
monetary instrument.
dis¬
honest currency that the Board of
Directors of the N.A.M. has gone
evil
nature
rencies
are
in
respect
to
of irredeemable
well established.
the
cur¬
It is
frequently stated by careful stu¬
dents of monetary history that the
the
of
creation
non-existent issues
statement
of
the
of
the mis¬
or
basic
issues
involved
(1) P.
review
given
5: "This brief historical
[of the gold standard] is
to
brief
is
that
above
has
had
period
world's
fact
the
demonstrate
made
ment
not,
in
state¬
the
gold
a
very
only
rule
of
the
over
This
systems.
currency
any' sense,
the
in
record
issuance
its
of
merit.
its
on
re¬
a
Rather,
it
only to show that the in¬
as the gold stand¬
ard
is not something so hallowed
long usage and experience as
to be sought after and fought for
regardless of any and all other
by
pamphlet; and it is in support of
such a currency that the Board
considerations."
has
standard
outwardly
endeavored
to
commit all members of the N.A.M.
This author doubts that the sit¬
uation
finds
in
which
itself—a
the
N.A.M.
willing
ing supporter
of
unwitt¬
or
major
a
now
means
governmentally-managed
omy
in
some
econ¬
other form—can
be
England
the
and
the
was
British pound
sterling
dominating international
of the world, for almost
century—until she became in¬
money
a
volved in
this
as
World War I.
author
lasted for
1920 before he turned his sup¬
and
irredeemable
to
to. his
special
governmentally
omy.
Said
Economic
he
-
currency
brand
of
managed
in
his
book,
Consequences
a
econ¬
[the capitalist class]
governments
of
historically true that
society
own
A
ever
perishes
no
are
is
order of
save
by
its
hand."
similar
reached
by
the
late
Dr.
was
Joseph
has ever
their
has
the
and
been
conse¬
have
use
been
bad,; often disastrous.
pamphlet does not point out
these facts.
*
that
statement
is
not
the
something
gold
to
be
sought and fought for "regardless
of any and all other
tions" is not pertinent
to
to
standards
redeemable
weight of
on
the
the side of
the
respect
irredeem¬
find
evidence
that the
is
clearly
sound and honest
"
(27 P. 5; "There is
cal
in
versus
a
mone¬
weigh
who
scientists
as
able currencies and
•
considera¬
in respect
specialists in the field of
tary
evidence
currency.
conclusion
currencies
short
of
quences
The
standard
mak¬
own
far
uniformly
the
allow them¬
their
relatively
The
of
so
system,
general, the span of life of ir¬
The
Peace (Harcourt. Brace and Howe,
New York, 1920), p. 238: "They
In
no
such length of time.
anv
redeemable
port
knows,
of irredeemable currency
In
in
gold
years 1816that standard,
utilized
by
more
accurately than
quoting a -wise observation
made by John Maynard Keynes
the
to
passed
during the
She
1821.
described
conflict with the lessons of ing, and a press of which they
the
monetary history
proprietors.
Perhaps it
lessons
Examples
better
in support of an unsound and
in
The
7.
Page references
in the pamphlet.
stitution known
selves to be ruined and altogether
undone by their own instruments,
involved.
to pages
point to the unavailabiliy of any
a
a
people; and in respect to
of the pamphlet.
are
is cited
by which our people can be taken
into thorough-going Socialism or
our
Following are illustrations of
each of these unscientific qualities
flection
unless
bankruptcy
currency
confess
There are, unquestion¬
ably, members of the N.A.M. who
consulted.
tific work.
its
and
issuers
on
fact
in
so¬
miscella¬
of
presence
bits of data revealing mani¬
festations not acceptable in scien¬
neous
standard
versus
currency.
be
can
was
mem¬
the
on
irredeemable
an
the Board
Board
the
freedom
cialized.
which"
to speak for all
redeemable
a
question
important
apparently natural companion
human
of
The
(7)
country?
purpose
author is aware, no people pos¬
mittee, and of the advisory group sessing
a
redeemable
currency
(other than chairmen of the two have been socialized, and logic
committees) are not listed.
suggests that no nation possessing
for
of
fol¬
subcom¬
If the
advocate
November!
an
for
in this
of
draft
report which
mittee information
L.
"Foreword"
initial
prepared
was
.
In
The
"The
that
situation
with
a
paradoxi¬
to the
respect
.Number 5452
Volume 182
The Commercial and Financial Chronicle
...
gold standard.
On one hand, a
principal advantage attributed to
the gold standard during its hey¬
day, and
vanced
its
major argument
a
efficacy
tion.
But
was
preventing infla¬
other hand, it
in
donment
tidal
of
succession
a
waves
that compelled
this
of
aban¬
standard."
hardly
sert
be
the
that
expected
gold
to
as¬
standard
is
efficacious in
preventing inflation
—assuming that by the word "in¬
flation," not defined in the
pam¬
phlet, reference is made to
ing
price
mentary
there is
coin,
ris¬
a
level.
It is very ele¬
that on our gold stock
superstructure of other
a
bank deposits,
paper money,
fensible
redemption,
support
in
resumption to the type
of
argument
illustrated by the
statements
quoted
immediately
the
the
government
culiar
and other forms of
buying
power;
that
factors
of
ve¬
economies
in
the
vite
Government
bonds
rate
deemable
of
the
to
gold
Such
should
in
is
an
in
throws
on
to
It is
A govern¬
one
clearance of credit instruments to
And
train
be
and
locity and
the
considered
various
that
types
other
many
the
certain
to
the
of
that
prices;
performs
attributable
not
forces
that
affecting prices;
long as banks have
so
could be wrecked by
procedure. The specie cir¬
system
such
a
of
cular
July
11,
1836,
in
of
can
selling public lands were
required to receive only specie
in payment, provides an example
the
the
other
agents
of
quoted
in item
reference is
which
efficacy of the gold
preventing inflation.
in
is
is
to
to
inflation
that one
prevent
prevent
part of
on
a
drunkenness
the engineer and
trainmen.
the
does
which
is
occurs
it would be to suggest
on
To
suggest,
pamphlet
as
various
in
places, that scientists in the field
of money
tists
the
distress that
can
be caused by the application
the existence of this variety of generally inde¬
credit
reserves
pand-regardless
of
our
affect
standard
functions
surplus
of
uses
currency;
forces
gold
other
and
in
There
of the functions of airbrakes
nation's monetary standard
a
places
as
standard
as
the
are
shows
improper to suggest that
of the functions of the gold
ment, With equal logic, could re¬
quire that all land, all houses, all
automobiles be sold only for gold.
there
It
in
the
standard
unneces¬
in¬
to
various
illustrated.
(3).
above
made
them
principle.
an
gold.
(2)
currency
confine
is
in the material
of it
item
as
re¬
in
pe¬
The pam¬
consideration
be
unnecessary
ex¬
is
proceed like non-scien¬
to
inject
into
confusion
presentation of the issues in¬
volved.
well-grounded
field
of
The
(hereinafter
author,
referred
to
as
the
from
money
often
in
the
(4)
P.
11:
made
"A
the
by
sumption
of
em¬
exercise
can
re¬
a
some
part
stock
but
cannot.
of
This
our
is
unwarranted
favor
our
of
own
"The
present
our
that
claim
a
regarded
to
gold
an
as
discrimination
foreigners
and
in
against
people.
argument has
central
banks
shipment of
demand
gold without first
our
having acquired
balances
distinctly
a
Even foreign
cannot
title to dollar
a
through
the
normal
of trade or through the
generosity of the government in
its loan, grant, and spending pro¬
If there be a sound basis
gram.
of
complaint on
this score,
it
processes
should
directed
be
foreign
title
against
our
the
and
and
banks
central
ments.
for
discrimination
of
people
eign
complaint
against
in favor of for¬
basis
sound
There
should
govern¬
be
dis¬
no
crimination against any holder
a
should
this
of
be
author
tend
that
it
should
be
favor
in
people and against the
foreigner. The author of the pam¬
our
phlet
to
seems
manner
he
think
cast
has
doubt
a
the
validity of such an answer
saying "The argument has a
distinctly
nationalistic
flavor."
by
Such
statement, in the opinion
author, has appalling im¬
plications. Absence of national¬
of
a
this
ism
would
put
ourselves
mean
at
that
we
the
would
of
mercy
foreigners in every conceivable
form; that we
would in effect
say
to
would
the
other
"Come
and
of the
what you
peoples
take
dollars
so
Continued
greatly
on
20
page
gold standard.
The correct
point to be made is that a gold
standard places limits on the ex¬
pansion of credit which must be
respected if such a standard is
maintained.
be
The
statement
sion to tidal
compelled
fgold]
it
in
of
abuses
in
cases
credit
in
(3)
.
the
Pp.
gold
a
General Mills' 27th year
succes¬
..
.
this
of
standard" does not
reveals
gers
"a
of inflation
abandonment
weakness
a
that
waves
reveal
standard;
which
have
KEY
mana¬
FACTS
FROM
THE
MAY
ENDING
YEAR
permitted
of credit.
uses
9-10:
"One
1955
1954
Total Sales
$513,651,149
$487,587,179
Earnings
12,383,500
11,188,853
Dividends
8,413,402
6,709,116
Earnings Reinvested
3,970,098
4,479,737
2.4c
2.3c
witness
•
•
1
stated
definitely [at the Senate
Committee hearing in 1954] that
the
government
debt
taken into account
recommended
rency].
quite
cur¬
definitely
as
sumption
that the re¬
specie
payments
of
make
into
not
were
Wet earnings—per dollar of sales
government
every
convertible
this
If
Tby those who
redeemable
a
Another witness asserted
would
bond
not
was
gold
coin.
-per
directly,
readily be accomplished
by selling the bonds for cash or
bank deposit credits and convert¬
ing these forms of purchasing
into
power
gold.
No
one
Taxes per share of common
the
would
Land, buildings and equipment
65,289,183
55,922,943
Working capital
67,930,732
68,305,462
Stockholders' equity
same
apply
•'
123,156,558
in
120,645,593
'
■'
mortgages,
other
and
•
* *
v
•
t
.
'
N
'
•
*
■; •' * ". \
*
*1,
s
pri¬
vate debt paper for which a mar¬
ket
4.50
6.69
of corporation bonds and
case
notes,
obviously
stock
men¬
tioned private debts but the
logic
5.02
8.16
share of common stock
done
it would
It
existed.
that during
be
will
HOW
recalled
SALES
THE
DOLLAR
WAS
LAST
DIVIDED
YEAR
•
the generation before
/
•
•
'
'
•
'
:
:
1933, all government bonds speci¬
fied redemption in gold coin of
the
current
and
weight
substantial
a
fineness,
private
and
part of
bonds contained similar language.
"It is evident that here is an
aspect of the problem that should
have
and
complete
more
consideration
have received
to
examination
than
it
appears
thus far
by the
resumption of a
gold coin standard."
of
proponents
*
If
of
is to go beyond
one
nation's
a
gold
money
sider
such
mentioned
to stop
gold
the ratio
stock
to
non-
and deposits and
debt
items
con¬
those
as
above, it is not proper
80«0<
for
raw
13#2<
materials, services
3«6<
to employees
for taxes
/
there. All things of value
be brought into the pic¬
should
ture—everything that
be sold.
can
,
All
other
wealth
stitutes
when
of
any
value
than
demand
a
for
these
gold
con¬
gold.
But
objects
of
sold
they are sold for
currency; and this brings us back
to the ratio of the gold stock of
are
nation
a
its
to
non-gold
money
and deposits.
.The
frequent practice of
nents
redemption of throwing
of debt, other than paper
items
and
picture
money
the
either
from
oppo¬
of
from
an
someone
1#6<
bank deposits, into
arises,
apparently,
confused thinking or
that the ratio of
redemption of
■
,8<
for future development
for
wear
and tear
•
•
our
to
our
gold
support
4
•
.
■ ■
>
.
:
\.
non-gold
cur¬
For
in gold. Since the evidence
that ratio is that, in the light
experience, it is more-than
an
illustrated annual report of
Minneapolis 1, Minnesota
General Mills' fiscal year, writeT
•
rency
on
,8<
•
effort to try to convince
stock.. is 1 inadequate
of past
to stockholders
Dept. of Public Relations.
1
.
±~.
'•
..
u
•,—
£
...
in
over
a
to
of
But if there
discrimination,
then
would quickly
con¬
promissory dollar.
of creating
program
to
to es¬
as
foreign banking and other
that
some
nationalistic flavor.
es¬
substantial credit in fa¬
a
of
The
is
citizens
own
tablish
point
of
is that
the present system
de¬
prives the American people of a
valuable
property
right.
They
point out
that
foreign " central
banks
and investment channels
vor
be
would
through ordinary trade
institutions."
gold coin standard
a
what
of
excess
tablished
argu¬
second
advocates
in
the
or
authors government's
or
scientists
commonly
ployed by non-scientists.
forms
confuse
To
answers.
confusion
some
corpo¬
made
lawful
To
unsound
act
burden
sary
the
nation.
or
be
under
will
as
money,
other
functions
various
such
a
payments
paper
and
themselves.
erroneous
phlet
special re¬
similar uncer¬
as
against
assurance
tainties.
and
the
each have functions
to
these
such
offered people to buy
bonds, partly because of this
nation's
experiences
with
fiat
in
ments
deposits,
of credit
made redeemable in gold
prior to 1933 had its roots in in¬
and
specie
gold standard,
bank
bonds
Greenbacks
of
1937
that year.
A
of
case
panic of
suspensions
in
above.
The
monetary procedure.
It author), of that pamphlet should
important causal factor have separated the contentions of
an
was
ducements
A scientist in the field of money
could
to
of
nents
the
on
inflation
of
ad¬
for its restoration, is
now
adequate
there is frequent resort by oppo¬
19
(483)
C
J-
J
0
20
The Commercial and Financial Chrdnicle
(434)
M
*
19
Continued J
from page
is redeemable, no government can
does
or
session
The N.A.M.
Study and
m
(9)
J
.
will, treat
will,
you
us as
we are
nationalistic
any
nations.'
inch-
the
type
meets
.
of meeting
Instead
a person
the issue of
needs
ms
desires,
or
i
ject
an
the
foreigners
question
has
get
no
That
relevance
dollars.
more
discrimination than
to the issue of
the
would
question of how our
own
people get dollars. Many ot
them
also
get
dollar
balances
thiough the generosity of the
|ar - reaching
implications,
way
degree by the
or
•
mcmt
advanced
government in its loan, grant, and
0f
g0id
spending program."
it
11-12:
Pp.
(5)
is
"It
not
cor-
a
would
rect, however, to say that American
citizens may not own
and
as
for
resumption
a
standard
coin
be
that
is
of control-
means
a
This argument
ling inflation.
hold gold in any form. Any person or firm may acquire and hold
runs
follows: When the people are
to exchange other currency
non-monetary uses in
the arts. Moreover,
for
gold
or
citizen
any
natural form
in
gold
and own
for saving,
may acquire
investment, or speculative purposes.
It follows, therefore, that
the alleged abridgement of right
is limited to the privilege of own-
ing and holding gold in the form
or gold coin."
of bullion
The
free
deposits lor gold, they will do
so in
increasing measure when
there are indications of an infiation that will impair the purchas-
of such currency or de-
ing power
they will
By such action
posits.
restraint on the further
expansion of credit, whether by
government or by private business,
because
the
gold
withimpose a
'he credit expansion
In copse-
b^nce ofresulting ifom ot goM
the reduction citizen
re.s®rye
important consequence except
er"rf1®nt 7111 curtail ll&' sPef*ai"&
no
to
producers
gold
tors.
fabrica-
and
Very few people
dfsnosed
are comwiselv
or
are
invest
to
netent
to
invest
to
try
in non-
curtanftsSpending
sufficiently to avoid deficit fiNot stated, but equally
nancang.
implicit,
the proposition that if
is
'he impending inflation is
re-
a
The
firm
of suit of uncurbed private loan exBache and Company, which a few • Pana s,m. ar
xestnclym will
gold.
processed
attempted to develop a
for such gold, soon found
years ago
market
that
tnat
thp
tne
ested
number
numoer
such
in
tndeed.
The
iu
j
involved
issues
freedom
of
De imposed at tnat point.
The author does not state what
scientist
scienust
the
are
neople
our
defending
aeicnaing
that
an
js
takeS
not
gej£
that
em'pntist
in
scientist
no
demand
redemption
«?..
1
1
j
,
j
.
r,
_
their
of
and
money
paper
.1
money could be
centurv
in
thn
of
fiold
tne
Held
expected to
01
read
prevent
eives
use
^
return
false
gold convertibility with
promises and mere wishful
that
insure
or
it
will
indefinitely
chasing
power
Th
witne„
mjoted
the
j£t perhlps
saic(
wjtbout
bj
urJOn
qualities
wjthin
that
the
scientistSj
he
not
cateeorv
such
be
of
wh0se
tieg
obligation
accurate
it
is
warranted
'
fs^ue
frankly "to
insist
ecoriomist
that
of
neoolp
our
at
cales
where
ofgold
counterf of
the
shoufd
people
gold
monetarv
ee
ft,
ovrhangp
to
for gold
currency
devoted
-
banks
able
to
thev
want
N.a!m.
parn-
if
the author of the
phlet
be
thpir
cer«f
lengthy
footnotes
to the subject to demonstrate that
these two witnesses—Henry Hazlitt
this
and
inaccurate
author—were
their
in
quite
treatment
of
the
matter of the
right of our
people to get and to hold gold in
this
The
country.
discussion
pie
to
get
certificates
tion
of
gold
right of
money
through
their
the
peo-
gold
or
redemp-
„
[inability
is
vital
a
fi.prp
pnniri
ordinarv
IU-
i.1.
___
field
of
money
should reveal,
Anyone advancing the arguments,
it
leads
currency
of
u,hnn
mieht
hfs savings
savings
in
in
nis
gold
because
he
tn
be refuted
evidence.
(8)
P.
by
13:
readily
the
view
standard
will
assure
control of
the
does
that
full
not
gold
a
popular
public nurse''
author
"rd
?roi
the
of
aslilre
"will
of
pamphlet
full popular
he public
uti izes
purse
considerable
coiisiaeraDie
.
vtU°
%
F'
the
the
effort
to
straw
"
con-
But he
snafe
space
to
to
^^buted to
this 1887;m1an
particular
man
demolish
implies
tTeleople to hoard gold "'0n ^
people toh^ard^gTd
the
The
incorrect
that
the
two
there
is
implication
inconsistency
contentions.
nation has
here
a
Since
in
our
monetary system involving gold, silver, minor coin,
paper money, and bank deposits,
t
f?
23,746
,
rmufremen'ts^In1anv°eveM*
^duirements. In any event,
e
Je £u3+a
P
*
Burgess
*
^able nf,th?,"Mr'
table, is this. Mr.
foRowhig the
j-j
no mone-
^
g
hoarding
'inadvertent
it
in
inac-
and
vantage."
<
•
the
.
mesne
.as
j j*'
he would have recorded without refinement. $199,900,000,000
TJat
expected
Pe
monetization
cripntist^
to
expected
to
hv
the
in
gold
2L Th auoted
y' releva^ce to
thi
author
The
-n
respect
Kn0x
has
and
factg
are
of
far
observed
,
has
statements
fonet^fcfentists fnTo
?old
held
them.
at
.,
Fort
relatively simple.
co.urse
.
Posslble institute
nr
-r„v
,
g°J
followed would
non-gold dollar and
limeaaanJ
e
all
dono^it
deposit claims against our
s?ock and to determine the
lnvolved-
I
Then he should
^ ^ ^
as
principles involved
to
hank
mun
observation
d
nrnf,pr}llrp
S^.°Y
to list
and be
functions
thi«
^
wou]d
tne procedure which Dr. Bur-
and
understand
accurately
Th
ran
understand
as
'meanj
in 'he «Kj>t of the Burgess pro'he foreigner could
mjnimum
g
de-
impression
.
*
■
ad dollar" claims against our
aonar dtimsagainst oSr
m
tfinpH
^ng
r
We main"
redeemable currency,
Tjhe ratio of our gold stock to
bn
97
101/
11
o
If
VPPrs
hl
„
nnrnnw
Ix'neSfng hit
o
magician's prop.'
it be wizardry or not,
this procedure is gone
a
"a
very
gold standard
purse."
Also
different ob-
the assertion
will
popularcontrol.. of,
a
bank
assure
the
°f
'r'8"
?f *7 Same cloth
flr
nf
that
full
public
+n
1
r
4
„
(iTl
were
.
fluctuations
leV6' """"
bank ,loa"s LT"
as.
rnm-
r
transaction is out
a
m
.
makes
the foreigners to us
in
g°'d Stand" eTnl Jeff"
goverement's'deM'pa^ hThte.author f the N-A.Mpam-
as
offsetting
an
rati°S Sh°U'd be
The Burpess table dealt with
Vlrtually
bank loans to pri- Phlet does not assert in this in- potentials which have little or no
v?te business are a monetization stance that an advocate-a com- Ration to actual experience. It
private debt' in the sSnse of P® ent adv°cate-of redeemable was comparable to one that would
thlg
tprm „
Exactiv
mav
may
got
be
De
^
,
+up
t
ou,hPh
of
aro
H«ht
Z
the
level
h
ti j
degt
private
7.-J
f
list
the
potential
claims
against
.
nnntpd
cPntenpp
i«;
npr-
the way to erroinferences. The writing in
open
ation
of
a
fractional
rpsprvp
as
monpti7jnp
SZ ^ ^ '° lnCOn'eCt e°n" Currency. SUPP°rt " redeemable
g. The vse of data which mislead
T
At the Senate heari"S in 1954 the -uOuntofgoM reportod
inferences" on various ?old standard bills. Dr. under earmark was $6,527,100,-
to
the
«ovprnmpnt
*? 8
svs-
tern. He should have given the
facts of experience; and, had he
'heimpTrtance of^the
'""oneous
f"finadeouato
.
that
various places in the pamphlet, done so, the evidence would have
thathldfbft ^
fjps
agree
»ut the quoted sentence is per- anon oi a 11 actional leserve sys-
gov-
d
b
not
are
rii-ffptprvt mitted to
nacti
.
fluctuations in the price the cash reserves of an insurance
under the gold standard; company while ignoring the oper-
there
through, but
monetizing
§one
does
currency
oamp
-
"eld
evffs
w- Randolph Burgess, Under Sec- 000. As of April
retary of the Treasury, shocked amount involved
Hphi
*•
different, but ap(12) P. 15: "A further point
parently correct, is a statement often raised in the discussion of
so long as a nation's currency, a gold standard is the matter of
that
,
a
Such
f
.
'financial
exactly
through whenever
.
neous
g°'d C°in OTbuIlion-a £actual
statement-is
from
Pt
there
th
banker,
dea» w»b
servation
nfod!,ce
pvidpfr„
loan to a Private business and
enters the proceeds of the loan
to the borrower's account as a
a
—
s
monetary economists present by
offering a bit of "evidence" which
was
if
not
the
justifiable in
interests
of
any
sense,
accuracy
in
$6,889,000,000
30,
added
-
under
to
■„
our
listed
(Federal
as
Reserve
587)i
p.
earmark
gold
the
1955,
was
Bulletin, May, 1955,
amount
-
.
„
Sa^\
balances to our
np+„n4.
nni,nivno
~ f d stock, the coJ"rect approach
PhnnlH h P
\? tbe answer would be to relate
AtunH
nrp^nro
e balances to the amounts of
+upciri
ncLSoihixr nt.ro
?UF g°
exP°rted and withdrawn
™ hf
th :, nn«cthiZ
m °,ur. stock and held under
nc,?
'ih
the best possible earmark in our Federal Reserve
? nla d
e
ta- ls?ue.s -banks for foreign account, and
*
' '
■'
.consider short-term balances of a
P- 21: ^ }s a!so trVe that corresponding nature owed by
a
.
^ 7 misleading and unjustifif"1headinganT^ustifT
to
that the
impression
^
conveying
in
is freaentlv
irredeemable
Senate subcommittee
prnmpnt
rumJrwaseadvaSnredetoat S, ere
is
the
ijar^and1 to'the^xtent'he'chooses
sLin/
argument
are
merely boarding it m
to state
consequences
people to*hoard .gold if they
of
th«
"Total obligations
deposit.
available
"History
support
might
wac
11,947
,
nirrpnrv
as
could
currency,
1° protec1: hls s.avinSs a"d thereby
form
the
thic
no
mprp1v
norfnrmpd
lisp
Whether
redeemable
a
thi,
safest
form
that
by
™rate deduction."
use 01 lrreaeemaoie currency, ana
tbe use of irredeemable currency
of
that
pnncirlpr
balances
that
proposals I relative
q{
.
debt'"
attributed by the author of
pamphlet to anonymous defenders
thn
want
follows:
ablfbtlance ofTadTta ^"aT
^
incidentally—referred to
that it [monetization,of Federal debt]
bUdW 1IldU#
The p0wer of each
thpn
the
hA
citizpn
accurnulate
accumulate
form
or
as
"ling
The
to
certificates]
infringement because
coin
obligations
advantage^attributed
currency.
,
gold
as
United States is making
Monetary
coin stdnaara, i\ is ireqenuy
an
to
States
were
$22,044 million, and
against this total there were
nupstio
ar;^p<; horp as to
A
^10/
*
*
In statements by
monetarv scientist en^aees
C0U+n
the proponents of a return to a ^nal monetary scientist engages redemption.
that
1954,
gold re-
Burgess did not explain how the
foreign balances had grown so big
a reaeem
bfyranh^uth7r ^hM plmpWet
standard
23]
p.
31,
validity in so
concerned.
able currency advance no such "ther
fO"'®"boni31as 1th^se described cqu
fontend.ed
Jan.
serves
that
un-
this subject produced
on
to convey the
govern-
Monetarv
^ems ana so on
scmniisis wno aeiena
of
r
me
autnoi
for thp
1Q1Fithe author of thp NAM average " ratio for +v,aS years imc6
author Oi tne lN.A.iVl. average ratio #
of the N.A.M.
the
1915t h d
hie ha«ip
iQto
Lo oqI
aZ
Pampmet nad as nis basic purpose 1932, pre-1934 data^ was 8.6%.
to toe gold invites that ^"sound- procedure;
gathering up of wild observa- The range of yearly ratios during
fandard
' is Its eff cacv in but the quoted statement is not
by untrained or irrespon- the years 1915-1932 was from 6.7
' inftotiom''
Neither an accurate presentation of the
contention is tn accord with facts issu« involved.
renting the issues on which, preIf the question was raised as
as the findings of scienttato in^ the
(11) P, 15; One witness before
7ere
-A
fore' the^Sena^^b'committee UsrhafalllgedU^goW standi
however, that this
obtain
such
statements
legislative
gold
a
of
Amendments,
as
United
more
standard is "a cure-all for the doing something about gold tends
mistakes of dishonestv
total
(13) P. 17: "The current, rather
fev.erisb discussion of pending
con-
ad- 01 xne aeDl*
page 5 of the pamphlet the author contended that "a nrinoinal
subject under
the
was
are
overcome
that author has
far as scientists
n
that'monetary
thfi ,mpression
yey
1J
+l^vl
this
times
made the the author of the N.A.M.
pamphlet.
The fictitious argu-
be
to
Jhe authiorof
^ith
modern
endeavor to
the
on
ment
pa
Act
that
.
monetarv
possible.
as
in
of the manner in which first-rate
scientists in the monetary field
feU
facuities of colleges and universi-
as
popular
some
.
good
not
those
as
of
that
but rather of the extent and char- entation which was designed to
acter o£ that management."
show why the United States could
The Kemmerer statement is, in
'
thiE1',! *
'be opinion of this author, typical !
"i nC
7
'p1 short-
the
mav
manv
does
"A
he
Reserve
the
have
point
It is not a quesThe author of the N.A.M. pamof the presence or the ab- Pmet apparently perceived nothsence of monetary management, ing wrong m the Burgess pres-
reflecting adversely
doubtless
following:
^js
.
pamphlet:
by
Mr.
Burgess
illuminating. A table which
put into the hearings [Gold
that
could
of the
supplied
shows
213
page
he
pamphlet
tion
of
it
to
book
N.A.M.
or less managed.
pur-
was
author
the
ards
of dollars'"
identified bt
turned
of reto be served. The
8
page
js
data
and
Had
the
of
From
niatic at all. All monetary stand-
restore
the
author
were
chose to insert that portion of
the
Burgess
testimony
in
his
pamphlet, page 8. And he offers
it as something "illuminating."
that paper-money standards are
entirely managed and not auto-
promoting
to
calculations
demption
idea, but a fallacious one, is that
Millions
metallic-money
standards,
like
$
the £°ld standard, are entirely "Required as gold reserves_ll,799
automatic in their operation, and "Foreign short-term dollar
purchasing
its
of
of the N.A.M. pam-
Standard.
Kemmerer's
vance such
reas°n that
IT
-1.1
inability
between
Kemmerer's Gold
Gold
author
of it-
currencies.
0£
((
to
|n
mis_
contentions for the
The very easily - ascertained
they would not be facts are that monetization of debt
bank deposits if standaT gold'accord with facts.
by banks existed under a gold
coin
or
bullion.
Because
two
Here
the
statement
is
made standard, and oi course no monewitnesses
who
testified
before that controlling inflation.- whatar^ scientist should be expected
the Senate Committee in 1954 on ever "inflation'-' may mean—is a to overlook that fact.
The heavy
the question of making our cur- keystone argument for a resump- monetization of Federal debt by
rency
redeemable in gold con- tion of a gold coin standard. On our banks has accompanied our
of irredeemabie
xeiiLj themselves to in gum eun- uuu 1 d fij u turn Mgiiudia. wn
xeaeei iduie
irrpdppmahip currency and
anrl
fined
the
to
non-gold coin
a
phlet twice quoted from the late
govern-
not
power
shrinkage
p0Wer
of
does
it
the
bave
for
cure_au
a
dishonesty
or
ments and
argu-
This author would contend
no
tnat
redeemable
reoeemaDie
advances such
currency
ment.
1
i
and
small
was
»
•
interinter
Deonlp
people
product
■>
•
mu
rieht
a
'
of
oi
exists
that
are
The author
the
drawals will reduce the gold reserve available for the support of
ability of people to get and
to hold non-processed gold dust
sponge
gold, or fabricated gold
under Treasury regulations, is of
issue
ard„
or
industry
"this
with
dealt
and create confusion in
12; "The keystone argu-
p
contrast
Dr. Edwin
per-
centage of gold drawn into or(7)
monetary mis-
or
is
irredeemable currency, which
is regarded as the perfect examPle of a managed currency,- and
a gold coin currency, which is
assumed at this point to be completely automatic and neither in
need of nor susceptible to, man-
the
of
Thursday, August 4, 1955
The implica- respect to the feasibility
argument
an
otherwise
support
the
definite
purse.
hold
of
tion
frankly. when he said:
'History
gj^ves pr00£ that the "gold stand-
an
they are not measured in any precise
require
committee
person is tree to cnoose, nes ca
he expected ordinarily to utilize
the most convenient variety
dollar. Generally that wouia De
pamphlet attempts to in- a
deposit or paper currency.
irrelevant question—how But the right to demand gold nas
the
people's
"To
'managed money.'
pos-
should be able to choose management 0r
skullduggery. A
of dollar which
e
witness
before
the
Senate
sub- agement.
discrimination against our people
and
in favor of foreign central
banks and governments, the author
of
14:
lapses into fiscal
.
,,
uncontrollable
the
proposition that during the period
in Which the country was on a
gold
standard,
there
were
no
lfYPnPPYIf!tDl& LUYY&IICV
VI*
V
V
iilVMvVillllllAV
without
P.
would
11/1
|
take
of
..t
The
could
stock
be
any
^W*.*«iV^-A
H
Chronicle
Number 5452 ..; The Commercial arid Financial
Volume 182
time the foreign holders
volved
posed
of
what
should
we
are dis¬
The volume
it.
in
valuable
a
both
expect to follow
Federal
the
Reserve
banks
which
the
author
of
the
N.A.M.
the
sound
their
institution
When
such
and
inferences
those presented to
as
as
is
gress
Dr. Burgess are
reliable guidance, Con¬
criminate has been the presenta¬
of a mixed variety of argu¬
tions of a gold
P.
Committee
a
the
of
"A
17:
not make
N.A M, finds material of the
produced
matters,
by Dr. Burgess
them by an author who fails
upon
to
see
or to
point out its amaz¬
ing flaws, that Committee too is
some
rency
the gold mine
of
by bank loans to the government^
therefore, the principal bulwark
of a sound currency is a balanced
budget."
As to the first quotation it may
Committee.
be
The
12.
restort
to
generalizations
not
are
supported
ment
additional
few
in
an
as
ones
The
omission of pertinent and
fundamental considerations
If
the Committee of the N.A.M.
obtain
adequate
and
information on which to
act,
they needed among other
things a clear-cut and thorough
description of the functions of
gold as a standard and as money;
to
were
proper
accurate
an
spects
analysis of the re¬
which these functions
in
1866-1878, under
effort to
sonal
lack
yielded
of
account
types
the
and
nature
performed
other
by
of
money
such as silver,
coin,
and
paper
money.
They needed a picture, in terms
minor
of fundamentals, of the operation
of
particular
currency,
stress
mechanism
and
clearing
our
with
laid upon the
significance
of
deposit
our
collection
and
sys¬
there
And
which
that
a
a
is
an
sound
valid
no
basis
properly
may
Continued
on
page
Report of
C0SDEN PETROLEUM
in
CORPORATION
govern¬
for the year
If the people
the
If
author
the
of
The past year was
Statistical
Cross
coin
standard,
to
have
It is not
sentences.
a
$50,187,453
$45,040,073
5,602,709
4,230,848
3,545,709
2,813,848
to
railroad
a
be
776,440
17,584,650
Shareholders' Equity, Year End
14,784,736
function of
standard to make a
Congress
or
an
Administration
"more prudent in fiscal matters,"
or
"the
people
more
self-controlled," and so on—no more than
it is the function of good rails
on
979,783
coin
gold
a
Operating Income
Dividends Paid
those
written
1954
1955
Net Profit
it seems
that he
suppose
not
the most successful in Cosden's history.
highlights include:
Net Income Before Taxes
N.A.M.
pamphlet had listed carefully the
functions properly
assignable to
gold
ended April 30, 1955
in
political and
fiscal
matters, a
gold standard
will not supply the lack.
And if
they do have such control, they
can
make any kind of monetary
system work properly."
sober,
automobile
tem for checks and drafts and the
that
the engine in an
or
to
the
make
production for the
barrels for
a
daily
average
oil and natural gas
driver
year was a net
932,414
of 2,590 barrels, and crude
production had
a
value of $2,697,545.
prudent.
relationship
18,584,390 barrels; 1954's figure was 17,076,785 barrels.
trainmen
force
to
PRODUCTION: With the bringing in of 28 new producing
wells, year-end crude oil reserves were increased to an estimated
Crude oil
perhaps
—
pre¬
more
cisely,
the lack of relationship—
between
our
volume
of
credit,
represented by checks and drafts,
and
gold stock. For ex¬
ample, the volume of bank debits
reported by 345 centers in 1954
was $1,887,366,000,000 — over $1,887 billion—, while the average
of the end of the month figures
by
our
The point is, however,
unless government officials
the
respect
which
functions
a
coin standard can and will
perform, if permitted to do so,
the
gold standard may be de¬
stroyed, and with it much of hu¬
gold
REFINING: Cosden's Big Spring Refinery processed 8,517,833
barrels of crude, a 10% increase. Last
acid
freedom—just as a fine au¬
can
be wrecked by a
man
tomobile
careless driver.
monument
careful consideration
ment
our
as
to mean¬
ing and principle involved.
The Committee
of
the
able
and
be
The
to
or
pay
our
excused
Reserve
from the
promissory
of
terms
appear
court
in
United States Treasury
Federal
their
of
this
banks
may
redemption
in
dollars
nation's
standard
dollar.
needed
They
ment
the
of
government
the
of
use
the
which
yields of petrochemicals.
also
a
careful
connection
treat¬
and a redeemable
the currencies to which
attaches the greatest
'
totalitarianism
and
with
people succumb to the
a
and
readiness
drug of irredeemable currency; of
whether or not the use of irre¬
^of
bankruptcy on the
deemable currency is evidence
moral or, fiscal
MARKETING: Total sales of all products last year were 10,200,116
functions
to
properly assign¬
barrels (42
gold standard, to gold
to credit used as cur¬
a
money,
sales
part of the government which em¬
ploys it; of the significance in¬
was a
gallon),
record
a
9% increase. Dollar volume of product
$47,720,157,
an
increase of almost 11%.
and to the management of
credit require precise and
cor¬
rency,
classifications
rect
if
confusion
On May 23, 1955, the Board of Directors increased the quarterly dividend
to perti¬
questions are to be avoided.
The N.A.M. pamphlet lacks such
and
erroneous
answers
on
nent
classifications and
11.
The
*failure
to
well-grounded
tists
Perhaps
instances
common
stock from 25tf to 37.5^ per
If you would like to receive
Annual Report,
a copy
of
our
please write:
the
separate
contentions
of
C0SDIN PETROLEUM CORPORATION
monetary scientists from argu¬
ments
the
its author fre¬
quently assigns functions and re¬
sponsibilities to the wrong areas.
between
of irredeemable currency;
ease
able
as
'
manage¬
value.
citizens to fulfill their prom¬
while
poor
hydrofluoric
world
the significance
of
promises to pay—for exam¬
is proper to require
ises
the
and
gold
currency,
care¬
a
ple, why it
our
abuse
of
employment of irredeem¬
treatment
ful
needed
his
to
credit—and
of
management
a new
was put
Refinery will be expanded by adding a second catalytic reformer
to produce 100-plus octane automotive gasoline and increase
Irredeemable currency is man's
to his abuse and poor
gold stock for that year
Was - $21,871,000,000.
The signifi¬
cance
of such
a
ratio requires
on
July
in operation for aviation gasoline
production. Petrochemical sales increased 12%, and a new
resin product for use in industrial coatings was introduced.
alkylation unit
employed by non-scien¬
•
...
-
a
of
,
.
Post OPTice Box 737 7
sufficient number of
this
been
pointed
with
items
procedure
out
placed
in
have
connection,
under
other
Big Spring, Texas
on
insist
irredeemable currency is
currency. If an irredeem-
one
a
A gold standard is
self-control
would
cise
to
respect
self-discipline.
try; and the implications of these
functions
irredeemable
currency,
provide, in so far
space permit, as
accurate a picture as possible of
that pamphlet.
will
or
substitute for national and per¬
no
restrictions.
pre¬
standard
self-controlled
with
a
a
an
the
Federal
budget
surplus—if that is what
is meant by a "balanced budget."
limitations of
..of the Annual
or
demanding largess
government or more self-
reasonable
needed
govern¬
a
any
expecting
from
have been restricted in this coun¬
The
that
out
balance
there is the fact that every year,
added
are
can
by
phlet fall under this heading also,
a
func¬
prudent in fiscal
will it make the
ment supports.
9.
pointed
budget by
the use of fiat money.
And id
fact
such cases
it would hardly be
Although some of the preceding correct to say that there is popu¬
illustrations
of
the
unscientific lar control of the public purse.
As
to
the
second
quotation,
methodology in the N.A.M. pam¬
which
standard
gold
more
[meaning?] of the cur¬
is budget deficits financed
stability
self-serving (as in the
interests),
some worthless, which could not
possibly provide reliable guidance
to
the members of the1 N.A.M.
case
in
more
nor
people
reliant
being mislead.
issues
Administration
an
Congress
type
thrust
basic
of
»
tion
ment,
dependable basis
and
manner.
The misstatement of the
10.
•
being misled.
.When
these
worthwhile
any
Sen¬
a
ate Committee by
accepted
with
deal
and
data
&
control
of
the public
purse, which is a balancecLbudget.
P. 23: "The major source* of in¬
of
surged upward.
.WJMW*iw«Aw>WM'tfWWKM
popular
gold miners' arguments in
appropriate
category.
A
consequence of his failure to dis¬
and the United States Treasury pamphlet chose to use were in
redemption by
P. 14: "During the past genera¬
while foreign central banks and general badly distorted and im¬
us, how, following our resumption
tion we have been flooded with
are
accorded
the properly
of redemption, Jan. 2, 1879, gold governments
appraised. The author of doctrines, arguments, and theories
status
of friends; of whether a
flowed to us, the demands for
that pamphlet should have
put aimed at repudiation of the only
redeemable
currency
is
not
a
government
securities
swamped
the Treasury staff, the Treasury great facilitating agent in foreign
trade, travel, and investment; of
*
was able to refund at lower rates
the experiences of nations with
of interest than those previously
irredeemable currencies.
prevailing,
business
confidence
The N.A.M. pamphlet does not
increased and business enterprise
the
„
(485)
depriving our people headings to justify avoidance here
the
illustrations.
property right in of adding to
of earmarked gold in recent years monetary
gold which has the Some of the arguments employed
come from certain gold mine
has been relatively large.
in¬
Con¬ quality of most universal accepta¬
gress and the
interested public bility among all types of money; terests which have been press¬
of the importance of allowing our ing'in various ways for a fur¬
should know why.
A pertinent
to
convert
the various ther devaluation of our dollar in
question is whether a large pro¬ people
of
our
dollars
into the order to raise the price of their
portion of that earmarked gold types
could not be expected to flow into standard dollar and to choose the product.
In general, their argu¬
our
gold stock if our currency kind most appropriate for their ments for a gold standard have
were redeemable.
Logic and past varying needs; of the question no proper place among the con¬
experiences as to the direction whether our system of irredeem¬ tentions which monetary scien¬
advance.
Nevertheless
the
in which gold tends to flow after able currency does not reduce our tists
a nation resumes specie payments
people to the level of a second- author of the N.A.M. pamphlet
both suggest that our gold stock or third-class nation whose peo¬ has confused the picture by dump¬
would rise as soon as provisions ple cannot afford a gold stand¬ ing a variety of contentions of
ate made for redemption.
ard; of why the reserves in our the pro-devaluation gold
mine
•The author of the N.A.M. pam¬ Federal Reserve banks should be groups into the same hopper with
at the disposal of foreign central a few of the contentions advanced
phlet did not bring these important
considerations to the attention of banks and governments but not by detached monetary scientists
the Committee to whom he was available to our own people; of who have the obligation to serve
whether
our
system
does
not solely the interests of truth. And
reporting. Nor did he point out to
treat our people
as
enemies of the few contentions of scientists
that Committee, as illustrative of
release
to
*
share.
22
The Commercial and Financial Chronicle...
(486)
22
Continued from first page
1A serious issue given inade-
Continued from page 21
:
.
quale consideration
.
Thursday, August 4, 1955
The monetary standard
The N.4LM. Study
of
tem
and
nation
a
and sys¬
vitally im¬
are
forces
in
the welfare
of
the
people concerned.
And
reaching a judgment on an ir¬
redeemable
currency
in prefer-
portant
Iuedeemable Currency
and Production in nearly all sec- cially 300 new steels from its retors of the economy.
search and development activities,
A very successful 1955 will top
We have achieved a fabulous
in nature. During the years 1947, to understand that the words in
" g ia * f
1 inhnmnf in off a 10-year Postwar period of increase in output per man-hour,
1948, and 1951, the Federal budget parentheses were those of Liver- ! J^U1
nf rpdppmahlp and
rreextraordinary growth in this over the past century, by conshowed a surplus.
The currency pool. In the second paragraph of
Lrrencies ire subjects country' Electrical production, stantly devising new and better
was still irredeemable, the people
the quotation, the pamphlet conthe index of industrial production, machinery to augment human efhad
lost the capacity which
a verts four ellipsis points into a » ^'c^p®cia^sts in^xne^iieia 01
,otal
ts cf corporations-any fort; for the economy as a whole
onid
standard
gives them to ex- da«L
money must aevoie many yecus, Qne Qr all of them Wlll bear thls lt has lncreased six times that of
currency
is sound, then it merer insertion, into a parenas a matter of logic that thetical
quotation whidh would
redeemable currency is unsound mean that the reader is supposed
able
undertaking
follows
a
direct power over the use
reopened to free gold dealings
March, 1954. The trading unit
js a 400-ounce bar of gold .995
level
what
and
credit system, for there is no evi-
hesitant ac-
needs gold cir*5
ceotability which
icywuuHj%.i
culatiori
asa^rective^
part of the
quotation
f!rst
The
states in effect
not an i p
irredeemable cur e
an
long history of the uses o
redeemable and irredeemable cu teaches just the opposite,
to
As
hestitant
absence of
an
cm
cm
if
that
people
the
subjects
rency
bloodstream
diseased
irredeemable dollar
reached, in March, 1951, the lowest
level ever attained after the
establishment of the Federal Reserve
System in 1914.
NoWhere
in
his defense
of irredeemable
our
to
a
their
in
great isssues as
sus
"to
into
read
that
the
"favorite
a
mystery."
gold bills Governor Martin of the
does the author of that Federal
Reserve
Board
said:
pamphlet point out that fact.
'There is no danger, present or
P. 23: "They [proponents of a prospective,
that
this measure
gold coin standard] also appear would avert. I cannot see how
to have disregarded the effect of the universal confidence that ex-
•currency
the
gold payments to
great mass of public and private
debt, and to have overlooked the
difficulties of limiting resumption
has
statement
fact.
to
debt."
exclude such
to
as
That
relation
no
The; correct considera-
lion is the ratio of our gold
all
to
stock
non-gold money and bank
other than
Any wealth
■deposits.
gold can constitute a claim against
gold. But to become such a claim
it
must be
is
which
into
a
in
a
cur-
small proportion of
converted
practice
gold.
To bring "the great
of public and private debt"
mass
the picture
into
into
converted
only
rency
Some
fer.se.
has
valid de-
no
that
of
debt
has
distant
maturities; and that which
matures will appear, iri the volof money or deposits and ina transfer of such currency
ume
volve
from
one
those
claims
source
„
to
another.
to wealth
are
to
considered..
be
13.
;
.
tt
•
*
m
The presence of miscellaneous
hits
of
Jlc
u
.
P.-4,^footnote 1:
Liverpool,
Jenkinson, First Earl of,
Treatise on the'Coins of the
so
National fnTotF expanlfon Yetvoumust
In the be vLhv interested
in U
No
make uphe Gross
prodrt
and other indexes
1946
y
u
through
tftr0.ugn
1954
we
nessmen
busi-
business
can
remain
in
a
status
we D"sl„ Dusiness can remain m a status
highlighted by a re- ested in the health, financially
article pointing speaking, of each of your customout that at the end of 1954, 70 ers because you
must be sales
firms had assets of $1 billion or minded as part of your function.
size is
cent
newspaper
as
against 43 members
exclusive clubs at end
World War II.;
more
this
of
of
What lessons can we gain from
the financing of the last 10 years
which will aid us in the future?
•
Reinvestment and Outside
As to the Future
*
the
jnto
literature
And they
in
the
not
.
economy, called "America's Needs
-Business men, whose chief at- and Resources" has undertaken to
tention tends of necessity to focus chart the future course of Amerion their business affairs, should can enterprises in almost every
expect te run great risks in being Rne jn brief, the business outmislead when they seek guidance f00^ jnt0 2950 is optimistic.
on an1.1fsu® to, which monetary
jn
Qur
popuiaR0n wri
taxes, reinvesting the rest in their
businesses. In dollars $80.5 billion
has been retained. In this same
period approximately $156 billion
has been spent on new plant and
equipment. Accounts Receivables
and Inventories expanded from
.
is 700 million already spent for of 1954, for example, corporations
modernization and expansion since in asset size elass "under $250,000"
gess, 54 monetary economists ad- parently they doubt that there is early 1946.
General Motors just earned 1.8% on sales; those in
vocated the insitution of redeem- an
inconsistency involved.
But th^ other day announced a half class $250,000 to $1,000,000 earned
ability. The fact; that these 54 that is because they-are not spe- bfflion dollar expansion program. 2.4V on sales; the $1,000,000 to
in opposition to the negative attitudes of Martin and Bur-
m0netary economists, whose alrevealing mamlegiance is suppoSedly to the truth
acce»table m and'
nothing else, opposed two
data
ver-
by a few hours or
months or years of dip-
or
are
5Sfcl?
sf. devote a hfe study. number 177 million consumers, an $38.3 billion in 1947 to $67.6 bilfif16 best they can do is to choose jncrease 0f 24V2 million over 1950. lion in 1953. Roughly $40 billion
the specialists on whom they Based on estimated increases in of new money has been secured
Pr^er. t0 rey and assume the per capita income the customer of through stock and bond security
s involv?d'.
this country,^\1960 will have purchasing power issues. The enlargement of phyists today would be enhanced by these rspecialists
are
divided for goods and services neariy o^.-sical facilities plus the capital abthis measure at this time.'"
roughiy into two groups: (1) fourth larger—in terms of 1950 sorbed by increase in receivables
A statement by a single au- Those
who support Socialism, dollars—than in 1950. Despite a and inventories has been financed
thority does not establish a fact Communism, or a government- computed annual average of 1,- to the extent of about 48% from
in science.
Still further, the pic- ally-managed
economy in some 200,000 homes to be built in the internal sources. New stock issues
ture should have been clearer for other farm- These specialists, be- 1950-6O decade, expanding popu- alone accounted for only 13% of
the N.A.M. Committee had the cause they seem generally to un- iati0n and the need to replace corporate funds required,
author of that pamphlet pointed derstand what they are doing, are obsolete
housing indicates the
With more competitive business
out that at those Senate Commit- supporters - of irredeemable cur- projected need for new housing conditions, it does not seem liketee hearings Martin opposed the rency. ,_(2) Those who are con- win result in a shortage of 350,000 ly that future growth can be fiinstitution of redemption because, ™ced that^the greatest good is a year. Our ever-growing taste naced to the extent of almost 50%
he contended, the economic situa- ultimately brought to the most for labor-saving^ equipment will from internal sources.
The rate
tion was not bad enough while PepP*e through the operation of sustain high sales levels of house- of profit per dollar of sales is conBurgess opposed it because, he Private enterprise and the devel- hold devices into 1960.
.
siderably lower for small and
insisted, it was not good enough. <>Pment
and protection of the
Capital expenditures by Ameri- medium-sized manufacturing corThose two contrary positions freedom of the individual.
These can business is expected to in- porations than the larger firms
should have suggested to careful monetary specialists are support- crease 25%
by 1960 compared and therefore they must place
men that either Burgess of Marers of a redeemable currency.
with 1950
Ford Motor Co., to greater reliance • on ;o u t s i de
tin was in error as to grounds for
There are many people who cite one example, has recently sources of capital to aid them in
opposition to a redeemable cur- speak for private enterprise and announced plans to spend $62 \ 'their growth. A recent SEC report
rency.
'
individual freedom
these days million over the next three years classifies profits after ; taxes for
:
Then the author of the N.A.M. who at the same time support for
new " property,
plants and all manufacturing corporations by
pamphlet should have pointed out irredeemable currency. :The in- equipment. This is on top of $1,- asset size. For the third-quarter
If that,
be
considered, then all wealth should
tme^nS it'v
io«
Can we reasonably expect this
Borrowing
field of money.
are
expansion of our economy to conIn the seven year period 1947
to be obtained from tke N.A.M.
tinue? If the answer is yes, how through 1953, United States corpamphlet of April, 1955, on The are. we to finance the expansion? porations as a group have paid out
Gold Standard,
A monumental report on our only 45% of their net income after
ping
20: "In his testimony on the
p
1946™*
obtained
weeks
last sentence"
comment" can
hardly be other than
redeemable
irredeemable currency are
an
not
a
iev
uoull
a
asset
ac-
tivity which call for the best ef-
was not given the reader.
And what the reader is supposed
0f
human
Spahr's favorite com- f0rts of the best students availan
irredeemable cur- able.
Correct
answers
to
such
professor
ment
fields of
are
in
Some econom|sts today are so
? ma
i-lr
nw
bold as to Predict that the next
™Se
$
7
%r * 10 ^ ^
+v7
Business in general your firm growth period m this country s
nrima^v fn'te'reslls^Vhelfnanc1,
T
have invested more than quo - over any period, of time.
varieties $n5 billion on new plants and Either it must ge ahead, or evendictator- equipment
Growth in business tually die off. You must be inter-
of various
These
Monetary Policy will be able
into the last sentence, of
read
fo
of spe-
irreaeeiwDie
currencies
purchased. The purchasing power thor
so
M
of the and with
government
Committee ships also have a long history.
National
acceptability": If a people can get economy. This is, of course, an
irredeemable currency ttrey extravagant metaphor."
take it.
And the volume in use
This is obviously
an incomand its velocity may reach great piete
sentence;
and apparently
heights. Sharply rising prices are some intended quotation disapevidence of a flight from cur- peared from the text. The alleged
rency to the goods and services "favorite
comment" of this au-
extending
^STbilhon
bv gold in hu-
wiui
MpcrirawHs
finp
QQ^
only
of
oart olaved
of tbe
or p. 24: "The followers
$13 930 f ^995 fine.
on
y.
The
rencies
The studv
variOUs
It is worth about $4,000."
redeemable Economists'
a
is
curiency
over
that
circumstances'
°Ut* Gr0.ss Naftonal Product which 1850. We are now ready for auto-
Considering the restrictions em- -cialization within the larger field
ployed in that market it is hardly of monetary standards, systems,
accurate to describe it as inyolv- and practices. Gold has a history
mg "free gold dealings.
A trad- in hUman affairs extending over
ing unit of 400 ounces at $35 per approximately 5,000 years. Man's
fine ounce has a value of $14,000, experiments
with
irredeemable
the functioning of the money
dence of restricted or
best under
fine
gold would not improve
of
lation
reUaWe
ansvvL is tUhafis
circu-
coinage and
"The
23:
JL
mpn
V
stability of the currency."
P
large
a
nf
^an^etfort to^obtlin'
p. 6: «The London market was
and the price
was
not stable—if this is
that author meant by "in-
ercise
of the public purse,
when
™ imnnrt.dnt
officials who
were following the
Administration
practices
ad-
of
consistency
in
their
position
obivously not clear to them; ap-
cialists in the field of monetary Our Gross National Product in
standards
and * human
institu- I960 is expected to be $413 billion
tions.
One might suppose that In terms of 1954 dollars.
Technology is our greatest re- pea
®
ln
and over class.
they could look over the world
The prospects are for
rapid technological advances in
the future. Each year more money
and effort is being channeled into
research than ever before. A proexists between the two systems, minent steel company executive
and
see
that every socialist and
$5,000,000 class earned 2.1% and
then the percentage rose steadily
as asset size increased reaching a
source.
the $100 million
totalitarian government uses an
A
profligate spending, monetization irredeemable currency and that
Realm in a Letter to the'King. 0f Federal
debt, and deficit fi- they would ask themselves the
Cited, by Kemmerer, Gold and the nancing, should have raised seri- question
as to what connection
The major outside sources Of
£aPltai have been .commercial
ba?commorcial financing insUtutions such as factors and fi-
Gold
nance companies, insurance com-
Charles
Standard,
44."
p.
herence to irredeemable currency,
0us
questions
as
whether
to
the
theTenefit entSpris? anTwholt"he'slme ^e nation. His own company has o;2CfunbdU/'^SSsmJl^ebuIaneaSsll'by
^eSce wHh hisaownCevs Kem! nLihon
,Co™mittee (the
«.* irredeemable cur- developed and produced commer-. <iunds to^sma^tasmes, by
his nrinter miVht have
i
J
JJ
y
monetary rency constitute a major problem
.
^
.
surance company lodns is on a
^adp
ffS fhJf^Infhnr econo"flls^s 41lvhos® statement was in the efforts of non-socialist tunate situation in official circles limited scale. The modest sized
have
gone
merer
directly to the Liver-
never
or
an
«
mentioned
for
•
Prrnr
^ fh^Mrornnni^
°- h0S^ Senate CommitfectW thprp mlKL hln t"
instead he offered
JZn* £ Zr
h!
' ,C®mmittee
,of the stategood reason tor stating cited by ment by one official — Martin,
Slfnp
t
-
n
Tif*
in inat
«on
he
quotation,
hi
,.
,
.
•
• - .'
• I
author, s indirect quota-
converts
which
a
bracketed
means
a
?
monetary economists to gain for and in various other organiza-^company, therefore, must look to
the people of the United States a tions. And now it appears offi- the commercial - banks and the
sound and honest money—a re- cially in the N.A.M.—at least in commercial financing institutions
deemable currency. Seemingly its Board of Directors. That is a for their financing needs.? .
/Such a procedure falls outside without realizing it, such people tragedy—for the pebple;.iiL gj^nthe bounds of science and is not
are
in
the
with
accord
Kem- quired of
a
the
attitude
scientist.
■
..,
re-
1
.
the side of the Socialists,
Communists,
talitarians.
v
.
-
on
,
...
"
.L,
V-
and
We have that
h---
..
To-
-
.
.".tf
m
Types of Shorts Term Loans
eral, for the government, for non-
socialist monetary economists, for
unforr;, the N.A.M.
•
-
other
"•
'
•
-
- U
..
.
,
The most important type of
business loan today is-the short
1
-^JST
Volume 182
Number 5452
of
financial
takes
the
the
but
risk; if non-payment
results from
a
plaint
which borrowers can use
expansion. Small and
medium-sized growing firms to a
chase
the
years,
needed
merchandise
of
return
or
client
merchandise
seller
or
the
account.
confined almost
com¬
must
repur¬
is
Factoring
exclusively to the
extent,
line of business.
sized
the fi¬
include
activities to
their
portion of the overall total of the
financing of small and medium-
or so
the commercial fi¬
industry has been widening
businesses.
nancing of mergers and acquisi¬
panies, of
tions, financing of leasing plans
on equipment and machinery, rediscounting the paper of small
loan
companies" and
financing
budget and charge accounts. ; By
far the largest part of their vol¬
ume is financing accounts receiv¬
able. The open account receivable
is probably the
oldest form of
credit known and the financing of
rowers
means
is
receivable
accounts
by
heavy bor¬
are
the
commercial
a
portant
total
made
part
of
the
im¬
loans
very
the banking fraternity.
might say, whole¬
by
The banks, you
sale the money and
panies conduct
and
in
the
finance
com¬
retail operation
a
main
competition
they
with
not
are
in
each other.
able
financing is to enable
to
ness
.
with
operate
smaller
working
busi¬
a
much
a
capital
than
would
Financing
Receivable
Accounts
This is not
new
a
industry; the
accounts receiv¬
finance company was formed
first
specialized
able
The growth of the
slow and cautious
and by 1922 there were only about
125
finance
companies
in
the
United States. The growth of this
50
years
ago.
industry
was
steady
type of financing has been
and
consistent
but
the
initial
in its development took
place during the thirties. In those
years of poor business and operat¬
ing losses, many concerns suf¬
fered loss of working capital and
were
not able to borrow in the
surge
usual way from
their baaks.
The
companies seized this op¬
finance
portunity to expand their business
considerations favored
and several
their
could
equity
because of
risks
the
take
They
development.
positions and freedom from re¬
sponsibility for depositor's funds
and -state
bank
examinations.
They had the freedom to intro¬
duce new and specialized credit
Regional or
it easy
extension techniques.
national
to
coverage
acquire
penses
tion.
volume
made
to
cover
ex¬
and give risk diversifica¬
State laws were favorable
in general, the feeling be¬
came
widespread that what was
sound finance for the textile in¬
and,
dustry (factoring had been
in ex¬
istence for many
years) could, at
reasonable
serve
cost,
other
in¬
dustries.
ordinarily be required for
given volume of business. It is,
a
therefore, a means of aiding the
undercapitalized enterprise but its
greatest
expression
should
be
in
supplying additional liquid work¬
ing capital to an expanding busi¬
whose
ness
sufficient
sales.
working capital is in¬
permit
increased
to
Let
illustrate this:
me
has
terms,
It
spend
and
takes
30
$200
for labor.
to produce the
article, labor must be paid in cash
and competition requires Jones to
sell
At
days
the product on
the
Jones
end
will
of
the
have
$400 capital.
30-day terms.
first
spent
30
days
his entire
He will not receive
payment of his product for 30
days and
if he could obtain
materials he would not have
more
the
even
more
cash
to pay for the labor to
the product. He would be
process
forced
to
limit
article
one
his
production
60
every
to
permit the assignment of amounts
government to lend¬
ing institutions.
Billions of dol¬
lars of war production was fi¬
nanced through the discounting of
accounts receivable against Uncle
Sam.
The postwar II expansion
of industry required flexible fi¬
due from the
nancing for many companies, and
the finance industry has met suc¬
cessfully this challenge.
The financing of accounts re¬
ceivable involves the assignment
of trade receivables by the bor¬
the
to
rower
lender
as
security
for advances made to the borrow¬
er.
as
The assignment of
loan
receivables
collateral security, with¬
him
give
created
days which
an
annual
account
sales
of
receivable for
which the finance
$500,
on
pany
would advance $400 (80%).
com¬
Jones would have funds to pay for
the labor
required to produce an¬
during the ne*t 30
the process would be
repeated so that the
would be re¬
duced from 60 days to 30 days. As
a
result, Jones could produce 12
articles a
year
and double his
sales .and gross profit.
receivable
Accounts
be
on
a
the financing of ac¬
counts receivable should place the
earned,
in
position
of being able to take all its pur¬
chase discounts at a saving that
may exceed the cost involved.
borrowing
This
citing
can
a
company
best be
a
illustrated
count
the risk of loss if the
debtor fail to
pay
ac¬
because
>
on
marketing
and
truck
initial
trailer
as
its
Lehman
nounced
period,
financed by its
postwar
pressway
the
was
satisfied with
the
young
lines to finane
position to extend the larger
commodation
occupied
Bond
The bank
loan.
could
them
for
and
Comptroller Fred
Zeller,-Commissioner of Fi¬
and Control Joseph Lough-
R.
nance
lin
and
Commissioner
Works
When the finance company
nancing
they talk with one of
major finance companies. The
loan was made secured by a mort¬
was
annual sales approxi¬
$1,800,000,
debts
were
and trade payments gen¬
were slow,
30 days to 6
with
suggested
tinually
sales and resulted in
a
were
Under the
of
co-managers
agreement, Leh¬
new
Brothers will continue to ad¬
vise
improved financial position.
By
television sets and an February 1955 this company's net
assignment of the contract with worth had grown to $1,382,000 and
the hotel.
Repayment was pro¬ it was then able to negotiate a
by taking
were
man
constantly
the
sioner
gage on the
for
fi¬
inception
in
appointed Fi¬
in
November,
its
-Advisors
and
con¬
Expressway
$100,000,000 financing
in May, 1954.
profitable
expanding
since
They
1953
arrangement kept pace with con¬
the
the
the original
financing
flexible
Jr.
Lehman Brothers has been
company's tangible net worth
The
Public
of
Murphy,
Timothy
nected
months.
Ottaviano,
Bracken, State
1953.
a
bi-
a
A.
John
Attorney
nancial
anything
is
of State and Con¬
Ribicoff, State
Jr.,
General
John
J.
Treasurer,
mated
for
Committee
Abraham
ernor
acquired this account in 1948 the
heavy
erally
the
necticut officials headed by Gov¬
ac¬
required.
$330,000,
installation.
This
required a considerable amount of
money and so they went to their
complete
do
Con¬
with
connection
artisan group
A promi¬
nent finance company was intro¬
duced to the account through the
loan.
in
,
The
the growth and the bank, because
of its legal limit, was not in.,a
the
not
of
tated larger credit
They agreed to service the
sets
and
to provide
the master
antenna and necessary wiring for
room.
bank
has
Financial
as
State
financing of the Greenwich-Killingly Expressway.
.V
their operations by renting
sets to patients on a daily basis
in hospitals in the metropolitan bank and an accounts receivable
area.
Before long they contracted financing
arrangement was en¬
with one of the hotels to place tered into.
The local bank's city
sets in the hotel rooms to be rent¬
correspondent bank participated
ed by the hotel for a stimulated with the finance company in the
per
the
necticut
reception of
the company's trailer line necessi¬
gan
* day
firm
account but excellent
in casting
about for a business, decided that
there was a good future in the
rental of television sets. They be-r
per
Ex¬
Committee
Bond
appointed
an¬
Conecticut
the
Consultants of
bank
has
Brothers
that
the company was
local bank under RFC guarantee.
State
officials
all
in
pertaining to engineering
timing of sales of bonds,
and will also
surveys,
market
conditions,
co-ordinate
with
Highway Commis¬
other
and
matters
a
additional
The
hotels.
finance
in hotels in several eastern
undercapitalized business to grow
providing aggressive and sound
management is present.
The tremendous growth of non¬
notification financing of accounts
states
and with
ord
of
a proved successful rec¬
financing they were then
able
finance
receivable, in itself, is
almost
prima facie evidence that there
must be advantages in this meth¬
od of obtaining working capital.
Today ;the few remaining critics
of the receivables financing busi¬
to negotiate
The
bank financing.
company pioneered
and
successfully tested a new loan
technique.
The third
case
as
obtaining
had about 5,000 sets installed
pany
a prudent means of
credit- and helping the
regarded
continued to finance the
operation and the company cohtinued to grow and prosper.
At
the end of three years the com¬
company
esting
tured
and
as
financial
the
the
legal
of
the
aspects
history is inter¬
ness
are
aspects
and engineering
State
Program.
was
World
called
vestment
for
the
are
sold
other
to
the
War
upon
II
files
The
be
that
there
are
submit
bonds
bids
they
as
time to time.
An¬
bonds is
of
appointment
remain
will
the
until
Greenwich-
,
Mendenhall Now With
H. L.
Co.
Jamieson
(Special to The Financial Chkonjcle)
FRANCISCO,
D.
Mendenhall,
Jamieson
Calif—Er¬
Jr.
has
with
associated
come
H.
be¬
v
Mendenhall
who has
the
investment
business
been in
on
ly
Executive
Somerset
Henry
Smith
com¬
Vide-President
Securities
V.
have
Burget
also
and
L.
M.
added to
been
the firm's staff.
Dock Company
Employees
taken from the files of a commer¬
electronic
aircraft.
company.
a
first
manufacturer of
measuring
This is
The
a
devices
Six Fiscal Months
Three Fiscal Months Ended
June 27, 1955
Ended
June 28, 1954
June 27, 1955
June 28,1954
.$25,763,214
$33,097,588
$47,167,329
$59,038,163
2,871,715
9,378,565
5,303,291
17,228,812
Hydraulic turbines and accessories
1,710,522
1,272,567
4,946,646
2,782,615
Other work and operations
4,658,189
3,981,067
8,105,930
6,403,045
.$35,003,640
$47,729,787
' $65,523,196
$85,452,635
Billings during the period:
Shipbuilding contracts
.
.
.
Ship conversions and repairs
Totals
,
.
...
.
At June 27, 1955
At June 28, 1954
Estimated balance of major contracts
unbilled at the close of the
Number of
close of the
employees
period
on
$143,669,719
.
$221,564,875
roll at the
.
.
.
period
14,811
12,854
.
.
for
classic example
products in demand by the major
aircraft companies producing for
The
Company
such
income for any
unbilled
reports
balances
income
from
long-term
period will therefore
are
subject
to
vary
possible
shipbuilding
contracts
the percentage-of-completion basis;
Contract billings and estimated
statutory and contractual provision^.
on
from the billings on the contracts.
adjustments
resulting
from
By Order of the
July 27, 1955
R. I. FLETCHER,
of
Corporation.
Quarterly Statement of Billings, Estimated Unbilled Balance
Major Contracts and Number of
the
coast for many years, was former¬
Newport News Shipbuilding and Dry
of
L.
Co., Inc., Russ Buildingt
Mr.
major finance
numerous
form
of in¬
expected
sold in about 60 days.
effect
nest
strong financial condi¬
panies in
to manufacture
the
bankers to
from
also
group
Killingly Expressway financing is
completed.
.
will attest to the fact
companies
the company
of
will
remaining
block
The
in
by the
being converted
Brothers
another nation-wide
SAN
basis and at reasonable cost.
pullers
manufacturing of
skidders and stump
added
truck trailers around 1920.
In
Lehman
an
by
few actual case histories
ed, is known as non-notification of a growth company whose en¬
financing of accounts receivable. tire history has been in this post¬
This -operation differs from that war expansion era.
Management
of a factor in that.the factor pur¬ -emphasis on research and product
chases the accounts outright and
engineering resulted in.- several
assumes
two
the
cash
is that of
assumption by the
of the risk of
receivables assign¬
war,
aluminum
to concentrate
The
finance
Army officers,
financing
basis and may
eliminate the need for permanent
capital to carry his accounts.
In addition to the possibility of
increased volume and profits to
selling
case
on
development
puts the borrower in a position of
without
agency
the
decided
and
finance
the
it
constantly
cial
credit loss
the
Lehman Bros, to Advise
peacetime operation
a
and
In
approach to
financing prob¬
unusual
was
con¬
other article
out notice to the trade debtor and
financing
by' government.
part
are
lions of Americans.
primary product.
I believe, il¬
case,
verting to
of
sta¬
nego¬
flexible
After
former
war¬
illustration . of the facts of business life that more
close cooperation the finance in¬ and more businessmen are finding
$3,000 and a gross profit of $600.
dustry has with the banking fra¬ that discounting their receivables
If Jones had arranged to finance
ternity.
This southern company represents a flexible and easy
his accounts receivable, at the end
method of financing their current
was organized prior to World War
of the first 30 days he would have
I.
In its early years it manufac¬ operations
on
a
self-liquidating
would
cycle of cash flow
legislation, called
lems.
in
firms
these
of
Some
-
days,
of Claims Act, to
financed
to broaden
commercial
the
and
activity to
their receiv¬
by financing
large organizations whose product
brand names are familiar to mil¬
The conversion
$1,340,000 and net advances. After V-J Day, it
$105,000. For the faced with the necessity of
second
companies'
new
peacetime
it
won
time activity necessitated tremen¬
dous plant expansion which was
ac¬
has acquired some
lustrates
effort
war
about
tiating a stock issue
its capital base.
vided
a
portance of the account receivable
as
a
basis for
working capital
the Assignment
from
Sales for 1951
ture in its field and is now
The
the
Army-Navy "E."
year
company
job and contribution
tion
percentage five year term loan in adequate
capital of $400 in
of each months
rental payment amount from a syndicate of south¬
cash.
In order to produce an ar¬
made by the hotel. Experience on ern banks.
ticle which he can sell for $500,
the loan was excellent and the,
he must buy $200
Discounting
receivables
has
in materials,
success of this pioneer installation
come of age and borrowing on ac¬
which he buys on 30-day credit
enabled this company to sign up counts receivable has come to be
Jones
Early in World War II the U. S.
Government recognized the im¬
loans and passed
their
finance
to
was
amount
The function of accounts receiv¬
in
business financing.
course,
from
com¬
banks and account for
no
development
new
a
^
Finance
ables.
ward
ended Dec. 31, 1954 sales had
expanded to $6,665,000 and net
•' worth increased to $405,000. This
..
nance
aided
the
worth
commercial financ¬
The commercial finance indus¬
ing company advances funds to
try financed about $3 % billion of
business concerns by discounting
accounts receivable, makes loans open accounts receivable in 1954.
.secured by chattel mortgages on Compare this with the $536 mil¬
machinery or liens on inventory lion financed in 1941 and you will
and
finances
deferred:: payment agree that the industry has had
Today the
sales of .commercial
and indus¬ phenomenal growth.
trial equipment. : In the last
15 industry accounts for a sizable
years
to¬
approximated
For
The typical
today that at some point in
their business histories haver been
duction
personnel, and an ambi¬
tious
program
but required fi¬
nancing that would keep in step
with sales expansion. Late in 1951
this
company
entered into
an
counts receivables.
borrow
banks.
and trailers and its effective pro¬
agreement
textile and allied industries while
however,
cannot
enough from commercial- non-notification accounts receiv¬
able financing is being used by
these firms, special¬
ized commercial financing com¬ manufacturers,
wholesalers
and
distributors in practically every
panies can be of real benefit.
large
heavy automotive parts for tanks
the basic
not the
merchandise
23
(487)
the government defense program.
This company had the facilities,
The factor
risk
Commercial
loans, repayable over a period of
for
inability.
credit
unsecured term
make
also
is
loan
bank.
commercial
banks
this
for
source
The Commercial and Financial Chronicle
The princi¬
term unsecured loan.
pal
...
Board of Directors
:
Financial Vice President
The Commercial and Financial Chronicle...
(488)
24
Continued
from
Life Insurance
3
page
the
Variable Annuities—
ratios
Pertinent
that
indicate
to
the
offer
tions
for
all
on
A
Bank Stocks
the
leading New York banks continue
approaches, tne stocks of these institu¬
conservative
investor
The
values.
good
accom¬
panying tabulation gives, for the 12 months ended June 30,
1955, and in comparison with .a year earlier, the price-earnings
ratios; the rate of earnings on book value; the dividend pay¬
out
ratio; and the amount of invested assets per dollar of
except in the
two cases where only
As to priceearnings, a much better showing could be made if securities
profits were included in earnings, as very large profits on gov¬
ernment bond holdings were taken by a number of the banks
in the second half of 1954, which would be included in the 12
price.
selling
Operating
earnings are employed,
indicated data is issued.
months' results.
But,
certain other items in bank income ac¬
are non-recurring, and, in fact can turn
The inclusion of securities profits in bank earnings
is
as
true of
counts, securities profits
losses.
into
earnings swings that are not at all in
conservative investor expects. It seems
better that they go through the tax filter into amortization and
reserves, as is the general practice.,
cause
can
June
wide
very
what the
with
keeping
30, 1955, prices are used:
"(I)
Earned
Chemical
Corn
7.5
7.6
51
59
$10.15
$7.84
14.7
6.9
6.8
55
59
10.32
8.71
11.59
55
49
8.1
8.5
13.9
11.6
__
8.99
11.91
55
49
9.3
8.1
12.9
11.3
Manhattan
Chase
14.4
12.2
of N. Y
Bank
1955
1954
1955
1954
11.4
Trust-__
Bankers
Price
Dividend
1955
1954
1955
1954
Per Dollar of
Paid in
on
Book Value
Ratio
Invested Assets
10.04
11.1
11.7
9.7
10.1
25
22
9.74
13.0
Empire Trust
First Nat. City__
9.64
15.3
6.9
6.8
59
60
10.09
8.65
83
7.09
5.71
Guaranty Trust--
14.4
18.0
5.8
5.5
75
Hanover Bank-
11.8
14.3
6.9
7.0
53
56
11.00
8.91
68
68
8.95
7.93
Irving Trust
14.1
15.5
7.2
7.6
Manufacturers
11.9
13.4
8.0
8.1
51
52
11.96
10.02
7.1
6.9
50
60
10.58
6.67
J.P.Morgan & Co.
13.1
18.9
New York Trust-
13.4
15.0
7.2
7.4
60
63
7.95
6.90
States Tr.
14.6
15.5
6.4
7.3
78
67
4.83
4.31
12.6
14.9
7.4
7.6
56
58
United
Averages
-
_
,
—
this
possibility,
the
Prudential
spokesman said, is extremely re¬
because Management
mote
not permit
dle
is
with
stocks
bank
that
merged
were
in
acquired
be
at
more
a
grades in other classifications.
in the average in the 12 months from 12.6 to
continues to be a conservative ratio for
The increase is of course due in part to
moderately higher price
the
to
more
There
selling.
are
in the
values
been less
high quality stocks.
better earnings, but
levels at which the banks
of
recognition
the
attractive
ponents, book value and earnings, have moved forward at some¬
what the same pace.
Again it should be emphasized that earn¬
ings do not include securities profits; they are purely
operating
figures in all except the two instances where indicated earnings
are
used.
Parenthetically it may be stated that in both cases
the
comptrollers have stated that indicated earnings do not in¬
items. And, as has been noted, the general
clude non-recurring
practice among the large New York banks is to transfer securi¬
ties profits to reserves and amortization, so that capital funds,
or
book value, would not be influenced.
pay-out ratio, too, shows only minor change on average.
This means that over-all, dividends have moved about in concert
The
But when this is said, the tabulation still leaves
with earnings.
Nine of these banks disburse 60% or
less of their operating earnings; and when their large backlogs
of reserves of all sorts are considered, there is much room for
dividend increases in many cases.
The generally low deposit
ratios of these banks give emphasis to these low pay-out ratios,
very
a
as
low pay-out ratio.
low
with
out
deposit ratios
to build
assets
cases
apparent
plainly
dollar
per
from
a
of
June
earlier.
year
thing
30,
1955,
bound
higher prices at which the stocks sell, versus a year ago.
invested
Prices,
24%
as
assets
are
about
2%
higher
than
on
June
Total
30,
1954.
measured by the "American Bankers" index are about
higher.
said:
life
"I
13 N. Y.
City
Bank Stocks
NATIONAL
Copy
on
Request
Laird, Bissell & Meeds
Members New York Stock Exchange
Members American Stock Exchange
120 BROADWAY, NEW YORK 5, N. Y.
Telephone: BArcla? 7-3500
Bell
Teletype—NY 1-1248-49
(L. A. Oibbs, Manager Trading Dept.)
Specialist* in Bank Stock*
to
the
Government
in
Colony and Uganda
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 SomaliKenya
Head
Second Quarter 1955
BANK
of INDIA, LIMITED
Bankers
Office:
land
Protectorate.
Authorized
Paid-Up
Reserve
Capital
Capital
Fund
£4,562,500
£2,851,562
and
exchange
business.
Trusteeships and Executorships
also
undertaken
Bill
merely wanted
against competi¬
protected
that there is any desire vo
or
protected
ground rules."
m
;
the scrap is indicated not only by
the
which say,
position
'last
prestige
the
of
people and firms involved, but
also by the amazing political pres¬
the
sures
New
year you
and
all
the
of
brought
^eing
Jersey.
"In
states
never
years
my
.
member
Assembly,"
as
a
Jersey
veteran lawmaker,
seen
And
-
New
one
in
bear
to
"I've
such pressure."
while
the
fires
burn¬
ing white hot in financial circles,
their intensity scarcely begins to
match that of the conflict within
by the
use,
or
"(2) The plan (CREF) required
amount
in
the
equal to his participation
variable
annuity;
"(3) Because of certain
izing
factors
of
CREF
would not be present in
Jersey Bills)
period
a
of
from
hard
times.
Among
the relatively stable field
(a)
of
work
in
which
the
participants engaged,
(b)
(CREF)
and
the fact that the
...
ployer supplies
consideration paid for
Joining
the
Metropolitan,
(CREF)."
lawyers
and
sale
of
bills avoid.; These
the
bills, they
will by-pass practically all
legislation and regulation design¬
ed to protect the securities buy¬
ing public.
the
That includes not only
Securities
Act of 1933,' with
extremely exacting disclosure
its
requirements,
but the Securities
Act of 1934, the
Exchange
Investment Company Act of 1940,
the
Statement of Policy, of the
SEC and all State Blue
Sky regu¬
lations.
come?'"
opponents point out
bill
would
committee
ance
the Idea
Opponents to
Long, head of four
organizations, ap¬
W.
fund
mutual
peared in opposition to the Pru¬
dential's legislation at the Public
June 13.
behalf of a Com¬
Hearings in Trenton
Long spoke
on
on
mittee of Members of the Invest¬
Bankers
ment
reliably
is
re¬
Association, of the
National Association of Securities
sociation
of
Com¬
Investment
panies, and was one of 16 who
spoke against the Bills, including
set
up
to
prepare
an
industry-sponsored memorandum
opposing variable annuity legisla¬
tion (a position which had up to
then received unanimous approv¬
al of all committee members)
Prudential
representative
on
that
announced
Committee
the
the
the
Prudential, that very day, was in¬
troducing variable annuity bills
in the New Jersey Legislature.
Strongly
company
feel
annuities,
able
life insurance
against vari¬
there is just as
as some
men
among
others. Eight men, all Pru¬
dential employees, spoke in favor
dential sponsored Bill on
the Pru¬
the part
of life insurance agents.
The New
of the Bills.
Jersey Association of
bankers
Said
insurance
and
agents
Long: "Stripped of tech¬
a
variable annuity rep¬
nicalities
under the guise of 'in¬
surance,' an ownership interest in
a
diversified holding of common
resents,
which
stocks
value
fluctuate
will
income
and
in
productivity
with the fluctuations of the stock
the
market and
payments
on
"Under
ment
the
Federal
purchase
form
all
dividend
of
with
compares
to
less
a
in
than
and
rein¬
an
effec¬
1%.
This
tax of from 20%
91%, to which dividend income
would
be
subject
stocks
common
if
received
owned
in
on
other
ways.
"For the protection
lic,
of the pub¬
comprehensive
respect
to
regulation
issuance and
the
of securities has been
into
Federal
Life Under¬
opposed to these bills
right from the start. Its represen¬
tatives appeared in opposition to
writers
was
Legis¬
lative Hearing.
Some time after
the hearings at a meeting of the
New Jersey Association of
Life
Underwriters at which Prudential
the bills at the New Jersey
agents showed up in full force, it
was voted that the Association it¬
self would take no further
enact¬
part in
opposition to the bill. However,
many members of the Association
are still carrying on the fight.
the
annuity
income
subject only to
tax
effect,
stocks
variable
a
or group
in
could,
common
of
have
insurance
individual
an
individuals
treat¬
tax
accorded
now
companies,
of
varying dividend
common stocks.
strong a feeling against
Annuities
Origin of Variable
Variable
annuities
are
not
en¬
tirely new, though, at best, they
have never been called upon to
weather
anything but the recent
uptrend of the stock market. Nor
have they ever been available to
the
public,
general
as
contem¬
plated in Prudential's three bills.
The idea began in 1949 when
the Teacher's Insurance and An¬
Association,
nuity
endowed
Foundation
Carnegie
a
institution
through the
Securities Act of 1933, the Secu¬
rities and Exchange Act of 1934
and the Investment Company Act
of 1940.
Although a variable an¬
nuity is another means of pur¬
providing college professors with
low-cost insurance and annuities,
chasing
Fund
ance
stocks, its issu¬
common
and
be
not
law
sale to the public would
subject
to
of
any
these
time-tested and desirable Federal
regulatory
companies
statutes.
Insurance
entirely
are
exempt
such
abel
est
sold
annuity,
in
to
an
common
the
circumvention
a
vari-
stocks
of
all
in
could
be
complete
these
Fed¬
special permission
New York
State to
from
set up an en¬
While
the
on
a
restricted
permit
contract to college probuying regular TIAA an¬
A variable
troduced
CREF, and the Bill which set it
that
Prudential
that
the
life insur¬
any
to sell variable
annuity bill
in
New
an¬
York
in¬
was
State
in
1954, passed both houses entirely
unnoticed, and
was
vetoed
by
Governor Dewey on recommen¬
dation
from
missioner
his
and
Insurance
the
at
Life Underwriters.
revised,
bills
in
Com¬
urgent
re¬
of the State Association of
quest
Rewritten and
substantially
the
same
introduced in New York
were
1955
(and
subsequently de¬
feated) but received no opposition
from the State Life Underwriters.
In
announcing
be
that
there
would
opposition, Association Pres¬
ident
Benjamin
Salinger stated
no
that
certain
changes
in the
made
had
been
bills, eliminating all
of words "insurance" and "an¬
use
nuity,"
and that the Association
hardly oppose a
bill
to
could
create
something,
"which
is
said
neither
annuity, but
an
Salinger,
insurance
nor
experiment
a new
ment in the field of
equity invest¬
ments."
Much weight is added to Salin¬
ger's thinking by Messrs.
Bellin¬
Hagmann and Martin in their
ger,
JOURNAL
CLU
they
is not
be
so
article
when
"The 'variable annuity'
annuity and should not
say,
an
characterized
constitute
...
(it) would
investment scheme."
an
Continuing, they point out that
a regular annuity, the insur¬
with
ance
of
company
mortality
the
ly to
.
insurance
loss
'variable
as
annuity' to
might be occasioned
by inadequate yield from
invest¬
ments and from unfavorable
tality
on
com¬
.
the
of
such
risk
error
The risk would fall entire¬
the participants in the
pany.
case
income
the
of
part
all
assumes
or
.
.
.
mor¬
within the group."
Questions Raised by
Investment
the
Industry
More
subtle, perhaps,
but
apparently for the
equally hard,
Prudential to
nuities.
up, were very
doubts
any
the
variable
annuity
fesors
casting
motives of
nuities.
tirely
separate affiliate, CREF.
College Retirement Equities
offers
not
company
The
cluding
ownership inter¬
public
received
the
that
say,,
the
It
itself.
the
on
securities
for example, that in the
last scheduled meeting of a joint
ported,
from
of
opponents
bills cite other limitations
issue
em¬
portion of the
a
paid me $100 a week. Now you're
only paying me $80 a week. How
business
some¬
the effect of
these stabiling factors are:
insurance
life
billion
which
(the New
the
$85
stabil¬
the fund is
...
what insulated
and
are
.
each participant to be covered by
a
true
annuity
(TIAA)
in
an
securities, could
give insurance companies an un¬
fair monopoly, not merely a com¬
petitive
position.
We
welcome
fair competition in which all par¬
ties
are
subject
to
the
same
not
ing investments."
Perhaps the attitude of most
life company heads towards the
Prudential's idea is capsuled best
in another statement by Metro¬
politan's Ecker: "I don't want to
be answering letters from policy¬
use,
sale of
and
are
regulations.
"Through the device of
of
oppo¬
against competition.
The proposed legislation, because
of the tax loop-hole and exemp¬
tion from laws governing issu¬
qualified in the field of fluctuat¬
holders
that
.
likely to be
rather mis¬
of the word annuity;
misled
a
tion, spokesmen for this Commit¬
tee of Members said: "We disagree
emphatically that the issue in¬
volved is merely one of competi¬
that
insurance companies
from
£3,104,687
The Bank conducts every description
banking
York
New
convinced
am
assertion
the
to
answer
.
nel who would not be
laws
The seriousness and intensity of
City
life insurance agent, Norman K.
Rosen, C. L. U., another who dis¬
agrees with the Prudential, has
ed
ANALYSIS
be
to
that."
want
prominent
sale
AND
wide
swings. And
sometime
during
those swings,
some
people would be hurt.
I
with
COMPARISON
be
to
State
as
letter
open
of
nents
ance
tive
price is the decline in all
an
Prudential
dent, that though we'd do the best
we
possibly could, we'd not be
able to pick the bottoms and the
tops of the market. There would
vested
This of course is due mainly to the
In
tion
Ecker,
well
—designed to protect the public."
be
amount of invested
about the
laws—as
eral
President
of the Metropolitan Life Insurance
Company is among those who dis¬
agree. Says he: "I know, as Presi¬
1.
deposit ratio of, let us say, 20 or more to
The
capital funds
up
earnings is less than when a bank runs a
plowed-back
of
the need
W.
Dealers, and of the National As¬
this 12 months.
change in the average rate of earnings
probably indicative of the fact that the two com¬
book value,
on
shares in
bank
There has
investor
was
thesis.
this Prudential
Hugh
Despite the change
14.9 times, the latter
high
many
substantial
Frederick
period.
the
people
disagreement
insurance
_---
relationship that the
favorable ratio than
from the price-earnings
seen
may
banks
for
used
data
forma
It will be
extent.
an
life
Among
there
would
annuity assets to dwin¬
such
to
The
♦Pro
annuity
variable
a
per¬
might get back less than he paid,
A.
% Earnings
Percent
Earnings
buying
son
a
CLU
CREF
was restricted
in
its
operation to a particular
group of highly educated person¬
Dangerous Expeiiment!
acknowledging that
don't
Twelve Months Ended June 30*
Price-
While
the
of
professional life in¬
a
publication:
surance
By ARTHUR B. WALLACE i
—
Company, wrote in
issue
current
JOURNAL
Bank and Insurance Stocks
This Week
Thursday, August 4, 1955
much limited. Con¬
these
limitations
the
questions
ment
sued
people.
answer
are
some
of
raised by invest¬
In a statement is¬
by spokesmen for the Com¬
made the CREF bill very Sifferent
from the Prudential bills, Messrs.
mittee of Members which
Henry H. Bellinger, Raymond L.
Hagmann and Peter J. Martin, all
attorneys for the
Metropolitan
cles these questions are raised:
the
has led
opposition in investment cir¬
Does the variable annuity offer
the life companies an opportunity
Volume 182
to
Number 5452... The Commercial and Financial Chronicle
dominant control of the
assume
American
economy?
Lehman Brothers
—Current assets of the life in,
companies
surance
j
to 50%
,
all stocks
j
York
of
the total value
listed
Stock
the
on
i
increased
;
since
almost
five
times
1930.
—Today the life insurance com¬
panies own over 45% of all
corporate
States.
debt in
the United
there
are
800
over
life
insurance companies, the
potential for economic control
i
is not widely
j
10 largest life companies hold
dispersed.
two-thirds
over
assets
of
five
of
The
giants
total
business.
the
the
The
control
assets
equal to 51% of the combined
assets
A
of
Threat
800 companies.
over
to
Free
threat to
pose
omy?
—Will
political
forces
government,
in the past,
even
to
of
the
tempt
than
look
socialization
business
surance
of
more
toward
life
as
a
in¬
means
achieving control of busi¬
and
ness
shares
mon
of
Scudder
Fund
of
Canada,
Ltd., was made yester¬
(Aug. 3)
by a nationwide
of underwriters headed by
day
group
Lehman
Brothers.
The
stock
is
priced at $43.92 per share for sin¬
gle transactions of less than 1,000
For single transactions in¬
volving
a
greater
number
of
shares, prices are scaled down as
follows:
1,000-1,999 shares, $43.57
per
share;
2,000-2,999
shares,
$43.23 per share; 3,000-9,999
shares, $42.89; 10,000-74,999 shares,
$42.54;
75,000
shares
and
over
$41.92 per share.
The sale of the additional shares
will provide the Fund with
ap¬
$10,292,000
of
addi¬
capital, and in- I
outstanding common
1,250,000 shares. All of
the
originally
issued
1,000,000
shares are outstanding.
To date
the
crease
stock
to
of these shares has been
none
deemed
although
shares
time
and
the
the
option
at
its
of
re¬
Fund's
redeemable
are
at
provided the Fund with initial in¬
vestment
capital
of
$30,000,200
which upon investment has grown
to $41,170,000 of total net assets
fate
Aug. 2, 1955.
The policy of the Fund
is to
limit its investments to securities
all
monopoly-investi¬
gation, regulation and/or con¬
trol?
chosen
in
the
not
to
Prudential
comment
thus
far
these
to
answer
has
Government
because
fensive,
from
has been
taking cognizance
of these bills,
far, are keeping in the
background of the controversy.
but
thus
From the SEC
to
ment
the
only
comes
effect
state¬
a
that they
are
following the matter with consid¬
erable interest.
known, how¬
that the SEC expressed
ever,
self
It is
of
companies
from
come
deriving
in¬
their
outside
sources
United States.
bills for variable annuities would
have created a set-up subject to
SEC regulation.
The U.
S.
Treasury Department
equally close-mouthed, says only
that they are aware of variable
annuity possibilities.
Some official
more
specific.
sociation
of
The
National
Securities
As¬
Adminis¬
trators, in May, passed a resolu¬
tion urging that no Legislature act
favorably
been
variable annuity
on any
proposals until
an
provided
opportunity had
to
United
It invests
the
study
im¬
the
securities
action
in
lengthy sessions.
The significance of the whole
battle, perhaps, can best be illus¬
trated by a comment attributed to
Holgar J. Johnson, President of
of
Canada
States,
the
or
of the
Fund's fiscal year,
the end
less than
assets
reflecting
of
of the Fund's total
12%
invested
was
non-Canadian
of
Fund
issuers
Interest
33V3%
to
total
of
The
has
Ltd.
operated
continue
of
Fund
Scudder
and
Canada,
proposes
to
to be
a
of the United States Internal Rev¬
enue
able
income
to realize
Code and
and
United
from
tax¬
States
It is therefore not liable
not
does
liable
for
come
tax.
to
expect
United
any
Fund
The
become
in¬
States
intends
to
not paying
accumulating
its policy of
continue
dividends
and
no
and
of
all
reinvesting
income
and
profits.
policyholders
"they've
got
stocks
to
make
come
out
ance
One
to
buy
their
Drive.
Canon
Roosevelt
Mr.
been
veteran
the
here
trouble
insur¬
President of the Inter-
formerly
one
side
of
the
say:
"May¬
that
the
market—the
up side we've been
that
the
down
(Special to The Financial Chronicle)
BEVERLY
Charles
side
the
market, I
worked
It's
a
so
will
hard
F.
want
rates
to
brokers
the rise in the rate
ever,
loans to
on
and
finance their in¬
dealers to
ventories is the second increase within the space of a
early in July it
not
month, be¬
raised from 2%% to 3%.
was
$60,000,000.
up
getting
until
come
will
be
unless
If this is so, the seasonal demand for funds
better start than
a
substantial
the
a year ago when the turn did
This demand for money and credit
month later.
a
powers
because
that
the
be
business
give
pattern
than
more
tion, all rates will have to go higher
in the "prime rate."
is
strong, and
token amount of
a
assistance to the money market to alleviate an
Orie
President
f
Lawyer?
Com¬
until it?
merger with
Kelly
pany
Trust
Company in 1950,
Vice-President
and
was
Trust
Co.
serving
as
member
a
also
Director of
Bankers
He
is
now-
thi?
of
bank's
Advisory Committee.
Mr.
Kelly is a Director of the Ameri¬
can
Safety
Razor
Corporation,
Companion Life Insurance Com¬
pany,
Maryland Casualty Com¬
pany, Starrett Brothers and Eken,
Incorporated,
and
the
Starrett
Corporation.
He
is
also
the
of
member
a
Bankers Club, a member and past
President of the New York Ath¬
letic
Club
Country
the
and
Club;
Westchester
member
a
the
of
Westchester
County Park Com¬
the Advisory Board of
the New York
and
Foundling Hospital,
trustee
a
National
the
of
Probation and Parole Association,
and of Iona College.
Mr. Kellyresides
many
North Street
on
Plains,
where
he
in
White
for
lived
has
years.
Joins Coombs & Co.
in the in¬
(Special to The Financial Chronicle)
•
■
Mr.
served
and before his retirement
crease
j
R.
Bankers
already tight situa¬
is evidenced
as
activ-
s.
Kelly
mission,
Some money market specialists believe that the seasonal up¬
in loans is already under way as indicated in the report by
New York City member banks last week that borrowings
will be
».
I. Irving Berns is now affiliated
•• »
Increase in Rediscount Rate
with
Expected
Coombs
West
Sixth
&
Company,
602
Street.
With the tight money market comes an increase in the
in
Treasury bills,
well
as
as
a
yield
in prices of
rather sharp decline
Government securities which has carried most of these obligations
down to new lows for the year.
There appears to be no question
but what the demand for funds in other fields is making the Gov¬
ernment bond market meet this kind of competition.
The read¬
Two With Samuel Franklin
(Special to The Financial Chronicle)
LOS ANGELES,
George
justment, however, which is going on in prices of Treasury obli¬
gations appears to be taking into consideration nearly all phases
have
of the conditions which the money
215
market is
against from time
up
been
Samuel
B.
Calif.—Russell
Arnold
and
added
to
Franklin
Handelman
the
&
staff
of
Company,
West Seventh Street.
time.
to
Oscar Kraft Adds
With interest rates rising and yields of Government increas¬
ing, it would be logical to look for an increase in the rediscount
before
rate
been
much
too
time
has elapsed.
The decline
under way in quotation of Treasury
money
long
way
(Special to The Financial Chronicle)
which has
securities, according to
market specialists, is indicative of further pressure
on
interest rates, but, on the other hand, it is being pointed out
that the recession in prices of these obligations may have gone
some
Even
ishness
LOS
D.
ANGELES,
Miller
Kraft
&
is
now
Calif.—Doyle
with
Co., 530 West
Oscar
F.
Sixth St.
already in discounting what eventually will take place.
though there
as
evident
far
that
as
the
are
no
Buying Area?
decline
those
investors
U.S. TREASURY
signs yet of the lifting of the bear-
the Government bond market is
these issues down to
generally not too
Even
which
is
in
progress
concerned, it is
is taking
many
prices where there should be attraction
that
up
many
though most
to recommend
interested
are
in
yield.
To
be
of
obligations
money
are ever
market specialists
STATE, MUNICIPAL
soon
sure,
and
a
PUBLIC REVENUE
bought at such prices.
are
not yet in a mood
averaging down of earlier purchases, they do
SECURITIES
come
with the thought that consideration should be given to the idea
of placing under the market orders for selected Government bonds.
Two With Daniel Weston
LOS
J.
ANGELES,
Joins White Co. Staff
Goldberg and George B. Young
have joined the staff of Daniel D.
Weston
&
Co., 140 South Beverly
Drive.
what
get."
good question.
it
George M. McCleary
(Special to The Financial Chronicle)
Calif.—Frank
BLOOMINGTON, 111.
D.
Powell
has
become
—
Maury
affiliated
with White & Company, 216 West
Washington Street.
George M. McCleary, President
of McCleary & Co., Inc., St. Pet¬
ersburg,
Fla., members of the
New
York
Stock
Exchange,
oassed away suddenly July 31 at
the age of 54.
Aubrey G. Lanston
t
Joins Lester, Ryons
(Special to The Financial Chronicle)
ask only if the
to
HILLS,
Calif.—
Sill, Jr. has become
Co., 9640 Santa Monica Boule¬
comes
"And if the Prudential gets its
bills through, come the down side
Prudential
Loan
e
vard.
too; it always has.
of
time.
bottom in quotations of securities is known only in retrospect and
having recent¬
ly. Perhaps someone ought to tell
them
this
at
buying by their customers is the first change in this rate since
March 1954, at which time it was cut from 3xk% to 3%.
How¬
to
F. I. Du Pont Adds
financial
Prudential has been looking only
at
re¬
The step-up in the rate of loans to brokers to finance margin
(Special to The Financial Chronicle)
is
i t i
common
life
the
of
expected
was
trust Corporation.
right."
community had this to
be
that
philan¬
thropic
a
crrying of their own securities in most cases, and
customers' Securities, including tax free and Government
obliga¬
tions, were previously raised from 3% to 3J/4% by the large
New York City banks.
HILLS,
&
million
admission
in busi¬
financial
and
Trust
rising because the demand for funds
Governments in
Calif.—
James Roosevelt has joined the
staff of Boren & Co., 186 North
Underwriter
business—an
ness,
as
given it help here and there as they have
tightness would have been more acute.
still
are
(Special to The Financial Chronicle)
BEVERLY
affiliated with Francis I. du Pont
93
rates
many
years
long-term Government bonds.
dealers for the
a
insurance
to
active
been
Joins Boren & Co.
Insurance, by
Maga¬
zine.
Johnson, the magazine re¬
ported on Nov. 19, 1954, called the
variable annuity the greatest
tragedy that could befall the life
National
not
10
He ha?
Place.
pur¬
The "prime bank rate," which had been
kept at the 3% level
sometime, has just been raised to 3*4%, a move which had
for
in
operate in such a
"non-resident" for¬
eign corporation for the purposes
to
way as
had
invest
assets
at
Mitchell
some
mains sizeable- and, with the seasonal increase in loans
taking
place, it would not be at all surprising if some of the rates which
have been stationary were lifted in the not distant future.
such securities.
the Institute of Life
the
for the
the
but
freedom
reserves
to
up
securities
in
Plain?
office
Pressure
though
even
White
an
around
authorities
secu¬
and resources;
in
taken
was
in
velopment
portant questions of public inter¬
June by the National Association
of Insurance Commissioners after
still strong
fir m's
the
be
done from time to time the
cause
the de¬
Canadian industry
as of May 31, 1955,
est involved.
Similar
in
sources.
have been
groups
moving upward.
to
the de¬
on
The money market continues to show the results of the pres¬
sure which is
being put on it, and it is evident that if the monetary
rities
it¬
informally that the New York
still
are
is
the New York Stock Exchange,
Prime Bank Rate Increased
on
organized
And while the battle rages, va¬
rious
government
agencies
are
This
members of
in
& Co.,
o
were
use
names.
side.
associated with
now
Walker
increase in the "prime bank rate" and the re¬
discount rate has tended to further limit the small demand which
companies
their
rates
monetary authorities is
The talk of
ments
of
past week
H.
Treasury bills continue to give a better yield as investors,
the strong demand for funds from other channels, are
reducing their subscriptions to the weekly new money issues of
$100,000,000.
the
speak freely, but decline the
the thin
on
the
limited and the
very
markets continue to be
money
interest
is
G.
because of
its invest¬
who
much
very
ground
more
Kelly is
for
The Fund concentrates
business,
is
gave
these securities
temporary relief was given to the money market in form of
Treasury bills by the Federal Reserve Banks.
the
insurance
them
prices
for
N;, Y.—Orie
PLAINS,
R.
chases of
turn
life
demand
since
the
judged to have the best
long-term investment possibilities.
most
a
for
bond
expected because the
questions,
unnerving ef¬
fect, apparently, among others in
they've had
the
market
not
offering in June, 1954,
industry by the life
companies escape the historic
Although
G. H. Walker & Ce.
WHITE
any
share¬
holders.
The first
oly control of American busi¬
of
Governments
on
4
Kelly Joits
*
industry?
—Can eventual possible monop¬
ness
Reporter
By JOHN T. CHIPPENDALE, JR.
com¬
tional investment
Annuity
free enterprise econ¬
a
offering of 250,000
proximately
Enterprise
Does the Variable
a
Public
shares.
«—Though
Our
of Canada Com. Stock
Life
insurance assets have doubled
in the past 10 years, and have
j
Oris
of
New
Exchange.
Group
Offers Scudder Fund
equal
are
25
(489)
LOS
liam
ANGELES,
A.
staff of
South
the
Calif. —Wil¬
has
joined the
Lester, Ryons & Co., 623
Street, members of
Hope
New
Stock
Warner
York
and
Exchanges.
Los
Angeles
& Co.
With Hoffman-Walker
(Special
to
The Financial
COLUMBUS,
William P. Jenks
Chronicle)
Ga.—Wendell
William
B.
Wight has become associated with
his
Hoffman
in
-
Walker
Company,
lumbus Bank and Trust
Building.
Co¬
Company
P.
Jenks
passed
July 30 at the age of 82.
retirement
the
former
he
was
New
a
INCORPORATED
away
Prior to
partner
York
Stock
Exchange firm of Jenks, Gwynne
&
Co.
IS BROAD
ST., NEW YORK I
-
WHiteh.ll 3-1200
01 So. L. Salle Si
45 Milk St.
CHICAGO 4
BOSTON 9
iT 2-9490
HA 4-646*
26
which
Continued from page 9
It
workers, these machines must still
manufactured by other work¬
ers
and the latter are no doubt
be
better
highly skilled and
than the former.
devel¬
already
machines, however, which
will perform logical operations as
well as routine or repetitive oper¬
oped
ations based
simple numer¬
Elaborate, high-speed
code.
ical
a
on
machines have
digital computing
in
wonders
worked
time
saving
and effort in the solution of com¬
plex mathematical problems!, And
it
is
such
versatile
computers
which
in
act
the
as
control
master
completely
automatized pro¬
duction processes.
Until recently
it
felt
was
would be
that
machines
such
prohibitively costly for
industrial use.
But as
ordinary
Professor
Wiener has pointed out
partly due to rapid de¬
velopments in the theory of com¬
this
which
control
and
made each of these machines vir¬
tually
a
model.
new
rightly
He
predicted, however, that standard
models would be built applicable
wide
a
industrial
of
variety
uses, and with this would come
quantity production and a conse¬
quent reduction in costs. To some
extent the production of such ma¬
chines in the future may be con¬
trolled by other similar
machines.
It is true that somewhere at the
back of this process there
brain
human
a
must be
provide the
to
information which the
machine
requires before it can
perform its task.
But the most
original
radical schemes of automatization
do
not
in
labor
will
be
given
a
pro¬
they only suggest
duction process;
there
the .elimination
envisage
human
of
de¬
tremendous
a
will have
industrial
second
its
has
while
brief,
optimistic
about
the
technical feasibility of the auto¬
matic factory, and the automati¬
zation
of
many
other kinds of
work requiring only average abil¬
ity and training, some of them are
pessimistic about our ability to
adapt to the new environment
which all this will produce.
In
they
are
discussing the social and economic
of automatization, Profes¬
effects
"It is per¬
Wiener concluded:
sor
fectly clear that this will produce
an
unemployment
situation, in
comparison with which the pres¬
ent recession and even the depres¬
sion
thirties
the
of
will
seem
a
pleasant joke."
in
While
of the nation's fore¬
some
scientists
most
mathemati¬
and
will have the revolution¬
tization
economic consequences, their
pronouncements tend toward the
ary
evince
and
dramatic
lack
a
of
knowledge about either economic
present forms of social
economic organization.
The
history
or
mechanical
of
substitution
vices
human
for
has
effort
de¬
been
going on since Watt developed the
flyball governor at the end of the
18th century.
On the whole, this
under employ¬
ment. There is a genuine differ¬
ence
between
gradual
changes
which
permit the transfer of a
large proportion of the labor force
from agriculture to manufactur¬
ing, and sudden changes which
might displace large numbers of
manufacturing workers. The lat¬
feadily make the
transition to tertiary occupations
ter
has
substitution
in
proceeded
because
ing for new types of jobs. But it
is
unlikely that automatization,
despite its increasing tempo, will
suddenly displace large numbers
of industrial workers in the fore¬
nicians
maintenance
and
various
men
at
the production
process.
These might be highly
paid but their
cost
would
be
spread over a tremendous volume
of production.
To
of
stages
all
this
might replygranted, machines may well take
over an
increasing part of trans¬
forming raw stock into finished
products.
one
will
But
the
not
•
in¬
creasing
complexity of manufac¬
or for that matter of the
turing,
entire
a
industrial
system, lead to
increase in the
corresponding
volume
of
record
other paper work?
sible
that
the
keeping
and
Is it not pos¬
decline
in
the
de¬
mand for production workers will
be
than
offset by the need
clerks, bookkeepers, ac¬
countants,
and
other
similar
more
for
more
workers?
foresee
many
Not
if
the' scientists
correctly.
They regard
clerical and white collar
jobs of today as rather low level
occupations in terms of respon¬
sibility and judgment.
And the
less decision making attached to a
particular job the
able
without a corre¬
sponding increase in manufactur¬
ing employment. In the long run,
manufacturing employment should
continue to decline, but the de¬
the
worker
easily
can
holding
that
machine.
job be
by a
Where
the job involves the routine col¬
replaced
lection,
and
collation,
manipulation,
filing of data it can be han¬
dled by such machines as the new
IBM 650 or the Univac 120 recent¬
ly put
the market by Remingtop Rand. There is little reason
to
on
doubt
that
labor-saving
forthcoming for
more
machines will be
use in the office as well as on the
floor of the factory.
All in all, those responsible for
the development of the science
of communication and control
not sanguine about the
of
increasing
through
contrary,
job
ing the
Luddite revolts in Great
between
1815.
and
1810
But such disturbances were short¬
lived
and
given
Instead
Workers
sporadic.
organized
trade
unions and sought to share in the
At
times
tried
to
our
and
economic
sys¬
or¬
ganization, it is their belief that
the average individual of "medio¬
but
unsuc¬
were
the
with
develop¬
industrial
unions, which
sought to bring within the fold of
organized labor workers of all
grades, opposition to technological
virtually
disappeared.
change
Trade
unions
today concentrate
large a share as
possible of the gains which result
on
capturing
cline should
be
gradual, not pre¬
cipitous.
IV
The
not
decision
automatize
to
automatize
to
of
tions
the
productivity of
types of machinery. And at
time by progressively
new
the
same
reducing the length of the
work
they have avoided the prob¬
of
large-scale technological
week
lem
unemployment. In 1880 the aver¬
age work week in industry was in
of
hours.
58
the
average is about 40 hours, and it
would be surprising if this aver¬
age did not continue to fall.
Another
important
develop¬
excess
which
ment
in
must
assessing
the
automatization
than
British
two
be
considered
consequences
pointed
was
two
Today
decades
economists,
Fisher
and
an
becomes
by
Allen
demonstrated
economy
out
ago
B. Fisher and Colin Clark.
of
G.
Clark
that
as
industrial¬
ized, technological change reduces
the man-hour requirements in the
primary
or
extractive
occupa¬
tions (as such as agriculture, for¬
fishing) and this, at
first, provides a pool of labor for
the expanding secondary sector of
estry,
and
the economy which includes man¬
ufacturing, mining and
tion.
Later,
as
technological
reduces man-hour re¬
quirements in the secondary
total
a
output
can
sec¬
recognize is that
live in a society in which
now
to
government,
and
other
powerful groups influence busi-
labor,
progressively smaller
pro-
to
produce
more
the
workers
available
for
expanded
are
output,
thereby made
tertiary
activities
a
decisions
economic
indirectly
or
Some have
that automatization will
produce marked changes in social
and economic organization with¬
implied
having fully grasped the sig¬
nificance of the changes that have
occurred
during
the
past
two
out
decades.
It is
widely recognized that
now
persistent unem¬
ployment is politically intolerable.
No political party which failed to
act to combat rising unemploy¬
large-scale
ment,
and
to correct
the basic
persistent unemploy¬
or
of
causes
ment, could hope to survive be¬
yond the next election. No longer
can
the politician plead that un¬
employment is the price we must
for freedom. The voter might
quickly ask: "Whose free¬
dom—and who pays?"
pay
all too
The
early
designed
ment.
restore
and
But
plished,
ment
the economic
full employ¬
this
once
it
the
withdraw
could
accom¬
was
felt,
was
program
temporary one
a
as
prime
to
pump
Deal
New
regarded
was
govern¬
and
turn
the economy back to the
business¬
suffi¬
ciently primed, however, and un¬
employment persisted
until the
The pump was never
man.
World
second
War.
The
war
brought with it full employment
and later labor
shortages.
end of the
our
war
realized that
ers
no
By the
political lead¬
longer would
the voters tolerate the kind of
employment
we
during the 30's.
titude
was
un¬
had experienced
Our changed at¬
formalbed in the Em¬
policy
level
ment
of
it states
the
Federal
Govern¬
to promote maximum
employment, production, and pur¬
chasing power."^Automatic fac¬
...
tories
notwithstanding, we know
h day that serious unemployment
ntved
not
economy
ly
upon
be tolerated
even
in
an
which depends primari¬
the market place for the
allocation of
resources
and distri¬
"full"
employment
income
distribution
provide
for
diminish
not
the
industrialists
is
to
be
and
in
auto¬
The amount
will
be
fluence on our
that
of investment
puters
digital
our
are
the
keep
point—was roughly
But
lars.
now
computers
er
kind of economic
puters,
however,
tion
the
of
tizing
is
total
only
declines, in both abso¬
relative terms, unions
will have to redouble their efforts
economy
v
frac¬
although the latter will in
emnloyment.
Somey
will find work in helping others
turn
capital outlay which should
kept in mind, rather than the
of the
cost
anism
self-regulating mech¬
decisions
vestment
not
are
expected
return
which is
this
the return
of
number
among
,things,
level
in
other kind, that could not
any
be
consumed.
tinue
to
duce
only
tion.
goods. We would be
consumer
And
if
can
>.
sufficient
income
finds its way to the hands of mass
This
consumers.
large
savings
the
extent
that to
means
a
cost
in
in
a
must
a
capitalist
produce, and
economy
savings
er
But
if
workmen
are,
displaced by machines, one might
ask, whose wages are to rise in
order to
maintain
the
required
level of
consumption?
have
be
to
general
in both the
level; workers
wage
There will
the
in
rise
a
automatized and the non-automa¬
tized sectors will have to share in
in
fall
to
relation
to
The snread between co^t.s
wages.
and the
will narrow,
prices
invested capital
rate of return On
If it falls too far or too
will fall.
further
deferred.
investment
will
be
There is a feedback ef¬
in the economy
analagous to
automatized factory.
the
in
This has been
recognized, for
ex¬
ample, by Arnold Tustin, orofessor of electrical engineering in the
Birmingham, who
applica¬
of
University
has made some tentative
tions of the
concepts of cyberne¬
Using this
tics to economic theory.
we
see
that there are
self-regulating forces in the econ¬
omy which
will slow down the
approach
rate
of
if*it
automatization
too
rapid
ceeds
at
research
level of national income
which
ess
particular
a
will
in
a
pace.
control
pro¬
Thus
engin¬
production
depend
upon
proc¬
manage¬
ment's views of the expected
turns
jobs
which
comparable to those in
manufacturing. But through apti¬
non-manufacturing
pay wages
and
retraining,
testing,
tude
placement the problems
transferring industrial work¬
to non-manufacturing jobs can-
worker
of
ers
be
mitigated. We have the knowl¬
only have the intelligence to applv it.
Finallv, we .are not
going to
have
fast,
exoprience for
or
expand production, prices
we
and
training
edge of how to improve the oper¬
ation of the labor market if we
ity.
If
rarely fit¬
industrial workers are
productiv¬
the overall increase in
will
-
In addition,
ity of jobs elsewhere.
wages.
mobil-'
knowledge about the local labor
market—much less the availabil¬
ted by
through
technological
change must be passed on in high¬
we
tend to equal investment at
Recent research on labor
ity reveals, however, that workers
often
have
only
fragmentary
realized
of
what
na-.
it.
pro¬
eering will proceed more or less
continuously, the automatization
consume
the
in
employment
This might involve a
con¬
we
we
what
consume
in the economy.
to
of
change,
in occupation and place of resi- :
artless indeed if as businessmenr
dence, but it was assumed that
or as a nation we produced goods,
so long as the job opening existed
whether in automatic factories or
the displaced workers would find,
for
maintained there must be balance
We must be able
thinking
our
the labor*
economists
often
assumed
that - displaced:
workers could find new jobs so
lone
as
we
maintained a high
them the level of demand
a
in
market. Until recently,
investment is influ¬
on
bv
occu-j
operation of
the
about
return
enced
non-industrial
for
revision
quire
If
is
high
enough
even
.the
most
costly
equipment will be installed. But
expected
problem
pations.
This will call for more
adult education, and it will re-;
investments
on
the relevant variable.
enjoy-
industrial
retraining displaced
workers
made
It is the
the basis of cost alone.
on
in¬
however,
will also be the
There
of
important,
create
spend their added leisure
ably.
alone.
More
by the increase in leisure
time,
is the
It
There will be problems
created
automa¬
plant.
non-manufacturing
organize
to
workers.
total
be
and
lute
com¬
a
of
cost
entire
an
adjustments. If employment
in the manufacturing sector of our
of the small¬
The cost of the
will have to
All of us no doubt
make
around
in labor cost.
system we now
have.
available in in¬
$60,000 which
is a relatively small outlay if it
will result in substantial savings
dustry for
alterations in the
major
without
million dol¬
a
some
are
economy functioning.
be done, however,
our
The latter can
com¬
decimal
last
in¬
production with a smaller
expenditure of human effort. This
is true, of course, only if we can -
Uni¬
vac—much maligned when it fail¬
ed to predict the outcome of the
to
will be better off if we can
crease
of the large Remington Rand
election
view
cf
point
economic
strictly
we
into millions. The price
ran
create , short-run fric¬
problems which might tax
ingenuity. But the problems
not
insuperable.
From
a
assuredly
to
of experimental
cost
a
tional
effectively
automatize industry has been un¬
derestimated
by those scientists
who have made gloomy predic¬
tions about the employment ef¬
fects of automatization. They have
correctly pointed out that the cost
of computing machinery, the heart
of automatization, will fall.
The
required
automati¬
profound in¬
lives. It will most
exert
will
zation
matic machienry.
is intended
denial that further
a
as
the above
of
None
of
inducement
invest
to
V
high
a
spending
consumer
while
bution of incomes.
If
in
of
that
sibility
of automatizing
of industry, therefore, should be a
cyclical phenomenon. We should
witness
periods of fairly rapid
displacement of labor alternating
with periods of readjustment to
the changes
engendered by the
displacement.
legislation can
high level of purchas¬
The basic problem will
will
which
will be
reverse
The process
true.
be that of maintaining the delicate
balance
the
times
other
minimum
by
for workers. At
stitute machinery
in
similar
a
ing power.
fect
the continuing policy and respon¬
un¬
be main¬
can
with the expected re¬
continuing to produce
by
conventional
methods. : At
times,
management will judge
that it will be profitable to sub¬
a
that
know
augmented
and
wage
maintain
"full"
that "it is
employment,
turns from
hu¬
in
must expect
we
we
compared
maximum
While
tained and widespread unemploy¬
ment can be avoided. Trade union
While this
guarantee
economy
employment,
law
not
the
our resources,
general this balance
ployment Act of 1946.
does
for
otherwise.
certain amount of frictional
through public policy.
be increased
tion of the labor force is required
in
scientists
these
What
failed
construc¬
progress
or
particular
a
unemployment
mass
future.
have
we
market
last
production process will not be
entirely in the hands of business¬
men, as some scientists have asr
sumed when making dire predic¬
as
from the increased
but
present
unions
innovations,
they
And
of
ment
opportunities
the
whole
cessful.
craft
early
oppose
the
on
tor
On
they
fruits of technological progress.
possibility
automatization.
tem of political
are
output
directly
Britain
reason¬
more
expect an increase in in¬
to
dustrial
and
more
more
It is
seeable future.
provide
and
man
lack of education and train¬
a
either
ning mules by hand spinners dur¬
or
geographic immobility, or because
of
less to attack inanimate machines.
tech¬
industrial
their
of
ness
relatively routine tasks.
Even in the completely automa¬
tized factory there would be
not
an
quickly learned that it-was sense¬
perform
might
orderly manner. There have been
exceptions, such as the insensate
destruction of power-driven spin¬
in the demand for labor to
crease
transition
and
cians have suggested that automa¬
and
the
that
true
employment
noth¬
revolution
In
course.
was
munication
to
attainments"
cre
is
will
employment of
siderable amount of frictional un¬
ing to sell that "it is worth any¬
one's
money
to buy," once the
run
trained
have
expanding
primary to secondary activ¬
ities proceeded rather slowly, and
in spite of that produced a con¬
Electronic Brains
Scientists
the
from
Men, Machines and
more
include
trades and services.
1955
Thursday, August 4,
The Commercial and Financial Chronicle...
.(490)
from
the
new
re¬
investment
discard willv nilly all present pro¬
duction methods and replace
them
pushbutton
fac¬
with
overnight
factorv
automatic
The
tories.
is
economically feasible only where
there
are
fairly long
runs
of prod¬
settled design for
a
lasting, steady
market.
And it is doubtful that
all kinds of factories
will lend
ucts
of
which
fairly
there
themselves
to
automati¬
variety of products among
a
which
equally
So long as consumers de¬
zation.
mand
is
they can pick and choose,
automatization
will
not
come
to
industries in which there are fre¬
changeovers, or in
produced in fair¬
ly small lots because of varia¬
tions in style or size. And as our
society becomes wealthier our de¬
sire for variety appears to in¬
style
quent
which goods are
crease.
Thus the transition to the
pushbotton age will not only pro¬
ceed
more
irinoorc
onrJ
slowly than many ene/»i on+icf c
hpllPVP
hilt
Number 5452
Volume 182
it shall
plete
probably not be so
they now envisage.
as
What
In
...
does
this
all
add
have
engineers
to?
been " overly
Public
Securities Salesman's Corner
op¬
Utility Securities
timistic about the extent to which
manufacturing industry can be
automatized, and they have also
been
overly
pessimistic
about
the
of
some
economic
of automatization. Inevit¬
ably
field,
progress
and
tionaJ
will
is made in this
short-run or fric-
as
problems
the cry
raise
impose
develop,
some
that we should
moratorium
a
technical
on
progress until progress in
havioral
take
the be¬
sciences better fits
advantage of these
to
us
innova¬
tions.
A Little
scientific
and
Planning and
technical
-
Doing
pected
to
the
thing
salesman
a
showy
and
work
you
that
that
sometimes
providing
the lawyers
isn't
munity.
it
When
several
you
the
as
going to relate to
new
I
case
am
I think
you now,
you'll agree that the salesman who
it
only planning his
also, he was thinking
but
In
will, as it should, con¬ about tomorrow.
every busi¬
independently of its strictly* ness you must always think of
tinue
Often the
scientist
does
technician
or
not
stop to evaluate the economic
of
sequences
which
he
is
search
is
innovation
an
in
con¬
working.
the
on
Much
realm
of
re¬
pure
science; it is simply research qua
research, and whether for weal
for
the
well
as
to
discount
both
those
predictions
suggest that the automatic
which
factory will lead
leave
another
or
you
securities
for
you
and
it
is
important to continually add
ones
to
take
the place of
new
those who drift away.
A
had the
this
he
Bernard
J.
Van
municipal
55
Van
B.
Columbia Medical Center
short
a
of age.
years
of
illness.
He
65
was
r-;
.
Total
There
but
telephone
are
them
of
one
some
has
two banks, but in
made
was
commer¬
a
of the suburbs have
this instance
of
225
shares
of
♦
graduated
from
Columbia
Uni¬
1911.
the
A pioneer in
public revenue
the
financing of
bonds,
Mr.< Van
Ingen entered the municipal bond
business in
R.
his
;
1911
M. -Grant
own
with
&
the
political
Special
levies
in
bankers
rec¬
of
It
prominent
in the
War I.
:
Four of the
in the field
of public
bonds, however, that Mr.
Van Ingen's leadership was most
widely recognized.
In
1938
he
underwrote, with a small group
of dealers, the T'rst issue of Penn¬
sylvania Turnpike
revenue
out
stemmed
large
has
turnpike
bonds
financing
such
uro¬
grams in recent years. He headed
the
bankers
who
financed
the
first issue of
thority
Henry Hudson Park¬
Marine
and
way
bonds.
leader
in
public
power
in
the
Nebraska
Parkway
He
pioneered
the
United States.
tem
of
Au¬
was
a
financing
especially
projects,
and
ern
both
also
field
he
Northwest¬
In Puerto Rico
the
financing
of
the island wide electric
sys¬
and
the
water
and
sewer
not
ing.
it
for
move
did
to
of
some
several
days.
bit of think¬
a
He picked
the telephone
up
Securities
SAN
July 28
announced
000,000
financing
been
represents
staff
of
has
Rex
been
added
Merrick
&
to
the
Co., 22
Second Avenue.
SAN
FRANCISCO, Calif.—Dan
Walcott, Jr. is now with Dean
Witter
&
Co., 45 Montgomery
Street, members of the New York
Stock
Ex¬
changes.
This
has
financing
sale by the company
a
and
the
placing of
an $80,000,000
five-year bank
loan
evidenced by notes due 1956-1960.
The transaction was arranged by
Dillon, Read & Co., Inc. and Rey¬
nolds and Co., Incorporated.
unsecured
all
the
loan
tion
to
company's mortgage
indebtedness.
of
the
istration
for
purchased
in
in
government
and
plants
with
sponsored first
aluminum expansion
during the Korean War.
"This
transaction," Mr. Rey¬
declared, "has put the com¬
pany's
domestic
facilities
on
a
completely privately financed
basis with the repayment of $69,-
(Spec;al to The Financial Chronicle)
guaranteed
BLOOMINGTON,
111.—William
Scott, III and Harold E. Walsh
Company,
216
West
White &
Washington
Street.
"As
Mr.
a
of
private
by
loans
partly
G.S.A,
company's
refinancing,"
pointed, out, "the
total
debt
ice,
and
indirectly
choice
through
cus-
between
telegrams
long-distance telephone talks.
vs.
Western
Union
important
owns
foreign cable facilities but under
from
Congress and the
recently arranged (sub-
pressure
FCC, it
ject to formalities) to sell these
properties to Textron for about
$18
million.
The
management
is
repayments
for the 1955-60 period will be de¬
creased approximately from $164,-
tion
to 20,000 Desk-Fax machines
service, there are 23,000 business
offices equipped with teleprinter machines, making a total
in
of
with
connections
43,000 direct
telegraph centers,
Continued rapid progress was
made in 1954 in the leasing of private wire and facsimile systems
to
industrial and governmental users
for fast, efficient handling of their
volume communications.
Western
Union's skilled engineers help de-
sign special types of equipment to
petitive
Bell
ing of private wire and facsimile
systems in 1954 totaled $22,504,-
highly
81%
678, or 17% more than in 1953.
Some of the larger private wiring
systems installed last year ineluded networks for the General
mainly to the high proportion of
Air
labor
News
that he
offered the stock), but
was
was
build¬
just
didn't
a
home
new
ment.
he
Nonplussed,
asked, "Do
then
that
someone
this stock?"
this
salesman
know of
you
might wish to buy
was given a lead.
He
On the second telephone call he
was
greeted
that
it
can
receive
now
properties
of
the
System.
Western Union has had
a
checkered earnings career
despite
high equity ratio (now about
the
following the current equity
financing). This fact seems due
to
costs
in
revenues
con-
So-and-so
Mr.
like
would
buy that stock but he is not in
his
office
back?"
Can
now.
call
I
you
Our
salesman, who was
using his head and the telephone
book, replied, "Please do."
Before
he
made
found that there
in
various
ten
were
lines
of
calls
he
four people
professional
the
bought the bank stock.
sold the 225 shares and he
orders
on
his
smaller
ture
date
buy
some
G<
Two
be
firm
-with
fortunate
a
to
business
in
1938
were
when
slowing of
The company
in
the black until
labor
severe
troubles,
loss
some
of
rev-
dropped earnings to 26c.
enue,
1954
$1.86 in the
1948-49
activity.
combined with
In
increase cut earnings
half, but this year they are
again on the upgrade with first
half profits over double last year.
The company is doing its best
a
wage
in
to reduce its labor
stabilize
a reduction
The lower debt
during the next few
problem and to
But the pend-
earnings.
ing Federal legislation for a mini$1 hourly wage, plus probable
wage
demands when
the
years," he added, "will enable the
company to proceed more rapidly
with
its
long-range
expansion
union contract
plans.
from now, may be a factor in 1955
"Additional production facilities
will
be
built
at
the
company's
present
plants, increasing its ca¬
pacity another 70,000,000 pounds,
to a total of 900,000,000 pounds,"
according to Mr. Reynolds. "With
ing, further large-scale expansion
is also being planned," he said, "to
increased supplies to both
mum
and old customers."
in
unions
tiations
agencies ex¬
pressed their appreciation of the
company
policy of "recognizing
employee needs."
The company
obtained
42,800
Share
shares
of
Shoes, Inc. common stock
at a price of $7 per share, mark¬
ing the first public financing by
the
retail
shoe chain.
The offer¬
ing represents approximately 8%
of the capitalization of the com¬
pany.
Net
proceeds from
the
sale
of
the stock will be used by National
as
additional
As
of
working capital.*
June
15, 1954, National
Shoes, Inc. operated 109 popularpriced
retail
shoe
outlets
located
principally in New York and New
Jersey.
Baker, Simonds Adds
DETROIT,
news
increases
rate
in
both
Employees' hourly
in
1945,
Mich.—Victor P.
Rosasco, Jr. has become affiliated
with Baker, Simonds & Co., Buhl
Building, members of the Detroit
Stock Exchange.
of
age
pay
the
but
the
Hence
gross
for
averaged
number
1954
labor
compared with 74%
66%
of
percent¬
63%
was
1946 and
in
1945,
in
The
has
company
spent
about
million over the
past
11
for modernization and mechanization, and $38 million is
$153
years
for 1955 construction.
expenditures are now
projected
Research
three times
large
as
the postwar
has
developed
The company
number of fac¬
a
devices
such
as
Telefax, and by
use
Deskfax
and
of
machines
these
has
messengers
five
in
10,350
to
14
sending
earlier in
as
period.
simile-radio
from
to
the number
been
7,902.
of
reduced
Formerly
were involved
receiving an in-
people
and
dividual message across the coun-
automatic routing
only three are needed.
try—now with
of messages
Installations of Deskfax, used by
business
ceive
Jralized operations, with prompt
transmission of payroll data, sales
orders and
other statistical
mation
headquarters,
to
infor¬
has led
development
of
"Integrated
Data Processing."
Statistical in¬
to
formation
sent
Western
over
Union private wire systems is
re-
ceived either in punched card or
*aPe ^orm' ^°.r automatic processmf_ by electronic computers.
Various new applications of the
facsimile metnod are being made,
Thus, high-speed facsimile equip™en£.haf> bee.n -Dut ln operation in
Washington to service the Senate
and * e House in handling big
volumes of messages during legis*atlve consideration of popular isfues' A 1fa!ed, facsimile system
known as Intrafax, to speed com,
mumcations
ments,
between
branches
being developed.
adapted
to
branches
for
ters,
This
can
also be
local
link
with
departdepart¬
offices, is
and
bank
central
headquar¬
verification
of
checks,
is
Ticket-
etc.
Still
fax,
another
which
device
has been
installed
in
many
business offices in Philadel¬
phia
and
Cleveland,
connecting
them with railroad ticket bureaus
years.
employees had been cut to 39,000
compared with 64,000 a decade
C. E. Unterberg, Towbin Co. on
offered
a
the
with
much smoother, and
were
earlier.
1
iron■»«
had
company
battle
o
a year
1952, but in 1954 nego¬
union's
the
82c
a
The
earnings.
reopened
$1.86 in 1954 compared witn only
National Shoes Slock
Offered ai $7
to
is
"knock-down"
assure
new
!^vice, Continental Can,
national
A
moderate
a
when
$68,000,000.
in
Deficits
reported
was
1952
—
20c.
while only 5%,
following.
year
enough to
new
of
revenues
remained
customers—two
1932,
share deficit of $2.25
then
tools,
a
telephone*
book, a telephone, and a littl«
creative imagination.
prospects
in
fu¬
more.
new
loss
a
rebound
a
again
at some
Emery
-Crispo
Translux
^{0T\^ Airways, Boeing Airplane,
in
44%
earnings
revenues,
resulted in
there
same
dip
drop in
has
shares in the
more
Adminitration,
Freight,
.
several
now
for
books
He
Service
North American Aviation, etc.
Many new networks are _schedbrought a loss of 39c as compared
*or installation in 1955.
with the 86c earned in the previThe growing need of industry
ous
year.
In 1946 the
postwar for centralized control of decenfrom
and business endeavor who would
have
level,
$3.78 to
Back
down
revenues
1929
cus-
from
with
to
of
needs
Revenues from the leas-
dropped
junction with the cyclical character of the business.
individual
meet
Olin-Mathieson Chemical,,InterJPaper,
Rexall Drug,
Hughes Aircraft, Pan-American
by a very pleasant
secretary who told him, "Yes, I
(Special to The Financial Chronicle)
result of the
Reynolds
&
tomers.
Administration and $76,-
750,000
still
Tel.
Federal aid in acquiring the com-
buy
complimented
also
was
the
second
nolds
it
directly with the latter's teletypewriter (TWX) service
and private-line telegraph serv-
hopeful
(and
Aug.
indebted¬
connection
-
acquired
but
American
Tel.—both
National
Admin¬
surplus
1949
incurred
ness
Services
war
system,
with
improve
the
speed of service and attract increased use of telegrams. In addivastly
it
in¬
The
company's obliga¬
General
Postal
competes
electronic
These
pace.
Mr. Auto Parts would like to
The proceeds of the financing
together with $10,517,000 of the
company's cash were used to re¬
Two With White Co.
with
told that
was
strong and its markets still grow¬
292,000 in notes held by General
connected
offered
000,000 of 25-year first mortgage
bonds, series A, due June 1, 1980,
Services
now
him
with
He then
the current demand for aluminum
programs
H.
Francisco
he
man
connected
the stock to him and
the
Armed
this
of $155,-
and
With Dean Witter
(Special to The Financial
Chronicle)
San
$235,-
a
to institutional investors
the
•
that
program
completed.
balance
MATEO, Calif.—Philip C.
Lemmon
of
name
of
'phone.
payments
S. Reynolds, Jr., Presi¬
Reynolds Metals Co., on
of
the
of
Richard
dent
machines
the United States since it
000,000 to $96,000,000,
Privately
debtedness refunded included
Rex Merrick Adds
(Special to The Financial Chronicle)
are
or¬
Reynolds Metals To
Place $235,000,000
and
T.
offered
One salesman
fund
system.
and
in the sales
men
was
which
be
to
the
the
parts
telephone
company.
name
bank should his
revenue
of
the
asked
on
for
the
of
owner
auto
the
by
general
financing of state highway issues
after World
receptionist
with
the
asked
and
secured
instead
was
to
state
of
obligations
taxes
and
of the
one
he
and
hundred
did
1917.
firm
celerated
monopoly of telegraph facilities in
tomer
with
ing to their clients.
their regular clients but the stock
formed
hank.
started
released to the salesmen for offer¬
ganization
was
merits
in
He
organization
investment
ognize
bought for inventory by
question and it was
was
firm
the firm of
Co.
Mr. Van Ingen
first
stock
local
He
a
Mr.
Van
Ingen was born in stock in the only National Bank
Brooklyn, N. Y., on Sept. 21, 1889," in one of the fastest
growing sub¬
educated in Brooklyn schools and
urbs
in
this .community.
This
versity in
the
Telegraph Company
near-
a
think
Tools—a
telephone,
a
cial bank,
sale
and a few other
businesses
where
the pro¬
interest in purchasing stock in
an
also devel¬
V qualified pros¬
time involved was
20 suburbs of the city
where this little event took place.
.
auto
prietor might be expected to have
sale
a
more
minutes.
Ingen & Co.,; Inc., passed*'
Each
away at
after
house
Because
made
only
account
book and
Ingen, head of' i
bond
One of
thinking.
not
two
pects.
Bernard J. Van Ingen
opportunity.
some
new
a
on
up
an
company
such
.
oped
yard,
ing
going to tell
am
five salesmen who
were
same
them did
us
checked
lumber
com¬
have the cash to make the invest¬
stcry I
there
you
He also
local
parts
in this suburban
due to the fact that he
Scarce Bank Stock
this
In
to Utopia, and of
those which suggest it will lead us
to
to ruin: '
;1
v;
J.
that
the
woe
present economic system,
however. " Reasonable
men
will
the
should get
one
In
customers
reason
very
our
;
old
keep.
business
one
the
as
should
it will go on. Automa¬
tization will not result in disaster'
or
customer you
new
the
not
was
work,
book and checked the doctors and
help
prospecting idea
a
bring
such
accounts,
unex¬
a
ostentatious.
out
can
is
be
can
progress
economic consequences.
Western Union
Bit of Imagination
a
Western Union has had
did
But
By OWEN ELY
By JOHN DUTTON
conse¬
quences
as
27
(491)
com-;
up
respects'the Scientists and
some
f
The Commercial and Financial Chronicle
firms
to
send
and
re-
automatically /in
picture form simply by pushing a
button, have continued at an actelegrams
and
permitting
Pullman
them
railroad
and
to
obtain
tickets im-
mediately, without leaving their
°fflces: Other railroads are said
Western
Union
with
progress
its
is
also
making
financial
setup.
The recent refunding bond issue,
sold
to
50
institutional
will
reduce
current
buyers,
charges.
The
fixed
equity
financing,
by
of-
fer\n§ rights on a one-for-five
basis to stock holders improves
Jhe equity ratio an(* thus should
stabilize
to
p
earnings.
one
stock
it
that
future
split
successful, in
The
recent
was
increased
the
four-forof
number
shareholders by 8%.
Mid Continent Inv. Adds
(Special to The Financial Chronicle)
•
CHICAGO, 111. Andrew G. Bertoncini
has
become
associated
with Mid Continent Investment &
Securities Corporation, 231 South
La Salle Street, members of the
New York and Chicago Stock Exchanges. Mr. Bertoncini was formerly Cashier for Barclay Investment Co.
years
& Co.
he
Prior thereto for many
with Paul H. Davis
was
28
(492)
through
National Income Series
r
mutual fund, the primary objec¬
of which is to provide an
a
Boom To Ride
Wellington Fund
Well Into
Inyesting for Income
Sets Records
investment in
of bonds,
a
diversified
preferred and
selected
group
common
because of their
relatively high current yield and
reasonable expectance of its con¬
tinuance with regard to the risk
involved. Prospectus and other
information
may
be obtained
from your investment dealer or:
National Securities &
Research
Corporation
Established 1930
120
New York
Broadway,
The
New York
American
continue
to
make
marked
into
on
1956, according to
the nation's
gan,
President,
port
to
of
econo¬
currently
report to the shareholders
a
of Wall Street
tion,
for
$6,.^00,000
a
which
he
mutual
serves
Harvard
"Over
should
the
that
the
373,000
College
nation's
widely diffused
all
business
continue
to
On
and
conditions
improve
of
this
into 1956."
on
spending for plant'
equipment has turned strong¬
and
ly
upward
Incorporated 1933
A mutual fund
income
investing
and
growth
through
common
selected
A
PROSPECTUS
from your
will show
Distributors
63
ON
REQUEST
Group, Incorporated
Wall Street, New York 5, N. Y.
and
by
local outlays
little, if
decline.
any,
slower
"Construction
peak
and
the
pace.
has
passed
continue to
will
Prof.
Lintner
decline
in
its
on,
view
of
prospectuses
describing
Organization and the shares of your
Prof.
con¬
more
Lintner
closed his report
a
comment on credit condititons which he believes will con¬
tinue
to tighten,
but
gradually,
and
not
enough
current
to
upswing
until
the
reverse
"which
after
the
should
turn
price
advanced
had
or
was
the
substantially
become
because
of
favorable
less
or
less
lower
at¬
stock
mon
and
made
new
increased
holdings in
com¬
the
auto¬
building, chemical, glass,
machinery, nonferrous metal, rail¬
and
tries.
rail
The
equipment
stocks
indus¬
selected
were
Purchases
year.
in
stocks
certain
whose
also
were
food
and
outlook
rubber
appeared
The
and
soap
chain
stocks
several
variety
eliminated
were
moderate reductions
were
and
made in
Lintner's
Investing
merchandising stocks, where
improvement in earnings was
the
review
of
the
Corporation,
was
con¬
in the firm's overall semi¬
to
report
shareholders
10-year-old
common
of
stock
the yield
or
low.
was
Some natural gas stocks
reduced because of the un¬
were
certainty
regarding
regulation.
government
Some oil
sold to consolidate
stocks
holdings
were
among
the leading companies.
The
shares
stocks
duced
of
few
a
were
and
paper
moderately
re¬
keep
during their advance
the fund's investment
these
groups
portion.
the
in
stocks
desired
Textile stocks
levels.
were
A
sold,
report to
state
trustees
a
rate of return and the bal¬
of
about
16%
represents
erage
ance
stability of income.
In
the diversification
outlining
pattern, the trustees also explained
that growth stocks return a lower
than
average
income because
earnings are "plowed back." While
the
companies in the portfolio
higher return, they said,
have good prospects of
appreciation, generally they are
more
subject to business cycle
paying
a
with above average income stabil¬
ity
well
tions may
be less favorable.
trust reported
The
Trust
of
100%
Aug.
share
of
have
Investment
in
different
135
to
payable
shareholders of
outstanding
asset value
date
was
1955
on
1,252,507. Net
share on the same
were
per
Light;
75,000
were:
American
65,000
industry classifications. The six
largest industry classifications in
of market
terms
were:
REFLECTING THE
rities
the
values
four
United
about
six
trast to
65,000 Sunray
$19.18, and total net
as¬
sets, $24,018,787.
National
Radiator
&
Power
Mid-Continent Oil;
30,000 American Cyanamid; 27,000
Chicago
Pneumatic Tool and 27,000
Chrysler.
Principal
additions
stock
portfolio
were:
20,000
Aluminium, Ltd.;
National
City
Goodyear Tire
Oil
of
Bank
&
Indiana;
Transportation
of
New
Rubber;
and
present
during
16,800
Works.
the
to
the
.period
20,000 First
York;
18,000
General
15,900
com¬
18,800
Standard
American
Corning
Glass
Incorporated
% Investors
U. S. mutual fund
designed to pro¬
diversified, managed investment
on
the basis of pos¬
A
participation in Canada's growth.
a free
booklet-prospectus by
mailing this advertisement to
sible
of
selected
Income
€
securities
P°*s'blef
GROWTH o
as
$49*4
of
the
same
Net
The Parker Corporation, 200
Please
send
a
Prospectus
$19.32
shares
the
United
of
In¬
in
largest
share
a
the 6,522,666
on
outstanding June 30, com¬
$91,741,428, or $14.60
the 6,284,365 shares
outstanding a year earlier. Direc¬
tors have voted a stock split of
pared
with
share
a
one
□ Incorporated Investors
point
a
present
than
df the market Fri¬
the
of
price
offering
the
series
$18.37.
was
Shareowners of all seven of the
vote
to
asked
will be
Securities funds
National
12
Sept.
on
on
on
share for each share outstand¬
ing to holders of record Aug.
4.
Net asset value of United Accu-
Agreement, extending the termi¬
2065.
amounted
shares
Fund
mulative
$64,611,929, or $10.53 a share,
compared
with
$31,775,428,
or
$7.51 a share, a year before.
to
United
of
value
asset
Net
Science Fund shares reached $28,-
equal to $9.98 a share,
with
$18,578,447,
or
090,691,
compared
$7.18
share, a year ago.
asset value of United
a
Net
shares
Fund
Con¬
$17,-
was
973,062, or $7.53 a share, against
$5,973,315, or $5.35 a share, in
the 1954 period.
SEMI-ANNUAL
shareholders
Report to
Bond
Investment
of
Fund B-l covering the
for
operations
months
six
first
the
of
provide
relative capital stability
of investment re¬
has been more stable over
the purpose
for
serves,
the
past
either long-
than
year
Governments
term U. S.
or
high-
grade corporate bond issues.
i.
Rising interest rate during the
six months' period under review
caused
Govern¬
S.
U.
long-term
and high-
ments to decline 3.15%
grade corporate bonds to decline
compared to a decline of
only 1.14% for the fund.
convenience
of
a
of
service
new
a
to
being of¬
Group
shareholders
Securities, Inc.
Under
Group's
of
to—or
of
less
dividends
the
Governments
nearly
grade corporates over
high5%, while
6%,
June 30,'55
Total
net
June 30/54
$15,662,129
assets—
$17,542,965
NET ASSET VALUE of New York
rate
Capital Fund of Canada, Ltd. rose
distributions.
substantially during the first half
the
and
current
When they are less than
the total
of quarterly dividends and distri¬
butions, the excess is immediately
reinvested. When they are great¬
er,
S.
U.
declined
new
Plan,
than
1949
of
low
have
0.94%
the June
and
and since
the fund has declined only 0.71%.
Periodic
monthly
payments
may
be-in
amounts
greater than, approximately equal
Remittance
respectively,
the difference is made up from
or
to any other
of
1955,
according
annual report sent
Brunie,
Erpf,
C.
Henry
by
and
Armand
to the semi¬
to stockholders
G.
Net asset value
as
Chairman,
President.
of June 30 was
share
shares
This compared
$27,794,816, equal to $27.79
a
on
the 1,000,000 outstanding
of
common
stock.
with net asset value of $24.99 per
named by him.
Affiliated
Fund
obtainable w.llvot.t
risk of principal.
A Common Stock Investment Fund
Investment
«>«»
•re
of this Fund
capital and
income
shareholders.
objectives
long-term
growth for
its
Prospectuk
upon
request
i
Lord, Abbett & Co.
i
..
»
.-i
New York
de¬
categories
three
2.38%
,4.09%,
were
monthly
months
12
past
these
in
clines
"Put-Take" Plan
The
the
Over
Group Begins
Berkeley St., Boston, Mass.
City
the
Dec. 31, 1955
noted that the fund, designed to
ending
year
2.30%
Fund
Address..,
a
100-year continuance of the Trust
on
□ Incorporated Income Fund
L
"
$35 V2 mil¬
period a year
Name.
J
con¬
the
totaled $125,987,313, equal
group,
to
value
asset
Fund,
come
public
At the close
day,
fiscal
«
J
Address.
in
1955
rise of nearly
a
price "to
the
relatively high price."
the
to
mutual
BULLOCK
Kime.
the
in
undue
capital and income.
STREET, NEW YORK 5
will
public offering
which is believed more acceptable
total assets
million in the THE
fun'l wl,osc
prime objective .storeurn as large an INCOME
A
for
long-term
Established 1894
ONE WALL
*
it
per
Incorporated
,
Established 1925
mutual fund >v.tU a
portfolio
Bend for
CALVIN
of
earlier.
person
.
value
secu¬
sales
funds
to the shareholder
a
in
partial liquidation of shares. Pay¬
ments will be made either directly
,
sharp
tinental
group,
months
for
rise
record
mutual
Funds
rose
lion
and
increase in the net
share" and that
result
in
reducing the
"the
asset
stocks
values of
petroleum $180,424,308;
utility companies $99,110,575;
chemicals
$65,937,450;
railroads
$63,006,675; steels $61,370,187, and
metals and mining $60,445,925.
their
Carolina
mon
Aug. 5, 1955.
July 20, 1955,
of
70.200
a
distribution
1955
half
Sanitary;
&
declared
Total shares of Investment
Trust of Boston
a
com¬
panies representing more than 22
held
the
of
nation date from 1965 to
check in regular amounts is a fea¬
Standard
Simonson, Jr., President
corporation, said the split
has been recommended because of
J.
H.
portfolio in¬
fered
Biscuit;
Boston
6,
record
ia
up
condi¬
business
when
even
hold
should
believe
trustees
the
industries which
in
are
fund's shares.
the
in
The portfolio stocks
fluctuations.
ture
first
Trustees
fund
likewise
Among the principal new common stock
investments made by the fund during the
Splits
The
in stocks selected
average
prospects less favorable.
ITOB
vide
than
better
with
stocks
yields had become unattractive of
fund.
State.
mutual
Corporation—will vote on Sept. 12
on a proposed three-for-one split
stocks with
in
utility
where
National
the
Series—a
Stocks
Growth
Split Stock
of
trustees say, is
higher than av¬
Another 37%, the
in
also
To
Shareowners
managed and sponsored by
National
Securities
&
Research
pro¬
were
few
shareholders, the
that 47%
of
the
portfolio is in stocks with better
than
average
growth prospects.
to
reduced after their
recovery from
depressed
latest
first
particularly favorable.
National Growth
pattern of diversification" of Mas¬
sachusetts Investors Trust in their
vestments
prospects.
Wellington Fund
investments
steel
economy,
his first as
economic consultant to Wall Street
By ROBERT R. RICH
COMMENTING UPON "the broad
yields
During the first six months this
of
year."
the
City
in
made
with
annual
Name.
Address..
which had
tractive
expected to be slight
tained
JU 129
at
as
fund
stocks
common
same
the
of
begin¬
ning of the year, sales were made
and net profits taken in securities
this?
the
country's
Funds.
in
the
omy.
SO Congress Street, Boston 9, Mass.
your
invested
about
portion
other
Prof.
ten
the
than offset" by increases
likely in
other sectors of the national econ¬
Keystone Company
me
with
year, and a substan¬
tial recovery in sales and earnings
of these companies was expected
be rela¬
cline, together with that of
struction, will be "much
the
Please send
stocks
common
re¬
depressed last
de¬
went
should
moderate
continue
The
While
road
somewhat
a
Foreseeing a drop in automo¬
bile production during the rest of
this year, he noted that this de¬
COMMON STOCK FUNDS
its
of
vestment bonds and governments.
at
tively
BOND, PREFERRED AND
in
Wellington
68%
mobile,
strength of underlying demands."
Custodian Fund
1955,
in senior securities,
equally divided
between
grade preferred stocks, in¬
continuing to rise, he
spending should
also continue to
increase, though
consumer
"but
;ystone
30,
about
balance
year
in¬
consumer
are
cline,"
#■
the
about
goods and services
on
Pointing out that
said
investment dealer
state
outlays
comes
quality.
in¬
will continue to increase and fed¬
eral
for their invest¬
ment
stocks
further
supported
are
rising labor costs, rapid techno¬
logical advances, improving prof¬
its
and
increasing depreciation
accruals," Prof. Lintner reported.
He said
for
the
and
planned
creases
June
he said.
had
good
"Business
since
assets
on June 30, 1955,
$26.77 from $22.15 a
June
sources
over
calendar
an
net
to
year ago,
added:
-
net
reached
30, last, a
increase of $124,-
Asset value per share of
increased
rec¬
on
that
had
June
Wellington Fund
recession
strongest
in
30, 1954.
re¬
fund
on
high and
new
of
reported
the
of
$459,524,000
economic
as
Business
remainder
year
Group Securities, Inc.
approaching the
is
Morgan
assets
fund
consultant, Prof. John Lintner
commented
Mr.
Investing Corpora¬
Fund
OF
for
150,000-mark.
In
ord," and
FUND
in his re¬
the six
stated
shareholders
30, 1955. The
number of Wellington sharehold¬
ers
and most
STOCK
about
rate of
months ended June
mists.
covery from last year's
has been
"one of the
THE COMMON
at the
new
2,000 each month, Walter L. Mor¬
and
one
better known
shareholders
gains
year
Mutual Funds
Wellington Fund is adding
will
economy
during the rest of this
the
5,
1956,
Economist States
tive
stocks
1955
Chronicle.. .Thursday, August 4,
The Commercial and Financial
—
Chicago
—
Atlanta
—
Los Angeles
Number 5452
Volume 182
share
March
on
share
and
31
$24.85
a
As of July
Dec. 31, 1954.
on
The Commercial and Financial Chronicle
...
28, 1955 net asset value was $28.95
per share. The Fund invests prin¬
cipally in Canadian securities but
is authorized by its charter and
and
40%
June
the
for
30.
T^tal net assets
bled
market
standing (56%)
ber of
1955
a
num¬
(58%).
30,
Total
net
June 30,'54
$17,707,019
assets
$8,477,110
follows:
as
equities, 75.5%; foreign obliga¬
tions, 12.5%; and Canadian cor-
SHAREHOLDERS TRUST of Bos¬
porates, 12%.
528
The
largest
stocks
of
holding
group
comprised metal and min¬
ton
reports net assets of $17,444,June
on
30,
1955, compared
with $11,100,383 on June 30, 1954,
an increase of 57%. Receipts from
ing shares, which on June 30 were
sales of shares
carried at
ter
$4,673,164, representing
Other major
16.8%
of net assets.
group
stock investments included
and
oil
shares,
gas
14.1%; paper
shares, 9.4%; merchandising
shares, 7.6%; life insurance shares,
and
1955
the
in the June quar¬
first six months of
the
established
Trust
highs since
new
commenced
continuous
offering of its shares in 1951. Netasset
value
share
per
6.2%; utility shares, 6%; pipeline
pared
3.8%; electric and elec¬
tronic shares, 3%; finance shares,
equal to $12.24
June 30, last, com¬
$9.86 per share on
was
on
June
shares,
added
the
Confederation
were
Life
Great-West
portfolio
ended
months
three
the
to
during
30,
June
1955
Association;
Life
Manufacturers
Assurance;
30, 1954, after giving effect
to the 3-for-l split in
December,
1954.
2.9%; building materials, 2.2%.
Shares
with
invested
was
Trust
Company.
by
Shareholders
in
fixed-income-
of
The
holdings
its
increased
Fund
Limited;
Simpsons,
Insurance;
in
a
ShawiniCompany; Royal
Royalite Oil
Company
Limited;
Western
Leaseholds;
Philips'
Lamp;
Canadian
Westinghouse
Company; Brunswick Mining and Smelting
Corporation;
Free
State
Geduld
Mines;
General Mining and Finance Corporation;
of
number
and
quarter
holdings
phone
Limited.
Triad
were
Co.,
Oil
and
Imperial
made
were
in
of Philippine Long Distance Tele¬
Royalite
Oil
Company
and Virginia Orange Free State
Company,
preferred
bearing
securities.
viously
reported to
Co.
Mines.
is
in
shareholders
solidying the substantial
gains recorded in the Trust's in¬
vestments.
balanced mutual
the
Life
Fund,
fund, reports for
quarter ended June 30,
total
net
a
1955,
of
assets
$24,100,367,
on 641,713 shares outstanding. This com¬
pares with $18,543,038,
equal to
$31.74 per share on 584,225 shares
outstanding
a
per
for
year
the
period
same
ago.
June
share
30,
1955,
common
stocks
represented
stone Growth Fund K-2 increased
fund's
assets, with 9.41%
ferred
stocks, and 26.41% in bonds
SHARE
PER
value
15% in the first six months of the
and
fiscal
year
ending Dec. 31,
1955,
64.18%
the
of
in
pre¬
Largest industry holdings in the
were
stock section
on
June 30
in public
motive
utilities, oils, auto¬
aircraft, steel and
and
chemical. Additional funds during
the quarter were invested prin¬
cipally in a selected list of highgrade bonds and preferred stocks.
Sinclair
added
to
Oil
Term Growth of
Capital and Income through
Company
common
ings eliminated
Objective of this Mutual Fund is Long
stocks.
was
Hold¬
Gulf
were
States
Utilities Co. and New York State
Electric and Gas Corp.
Prospectus
on
F. Eberstadt
request
Co. Inc.,
sl
manager and Distributor of Chemical Fund, Inc.
39 Broadway,
New York 6, N. Y.
WISCONSIN FUND, Inc. reported
net assets
at June
30, 1955, of
$9,548,827 as compared with $6,373,036 a year earlier and $7,930,-
260
at
the
1954
year-end.
Net
assets per share amounted to $5.74
on June 30, compared with
$4.60
June
on
30, 1954 and $5.19 on
31, 1954.
Harold
W.
Story,
President,
stated that the total net assets,
the net asset value per share, the
number of shares outstanding and
Dec.
FTAt
~Seory*
SALES of Science & Nu¬
Fund,
in
its
first
three
ended
July
29,
1955,
$463,340 according to
Bishop, President. The
Fund, which began business on
April 28, last, with assets of $118,000 in cash, closed
July with re¬
sources of
$554,542 of which ap¬
proximately 60% were invested in
amounted to
Donald
the number of shareholders
were
PUTNAM
The
FUND
cJ <$o4ten
futmam Fund Distributor*. Inc.
-
30 State Street, Boston
Fund
held
Electronics 5.9% and Oil and Gas
5.6%.
record
&
1
FUND
reported
$11,093,215, or
56%, in net assets during the 12
months ended June 30, last.
The increase, according to the
investment
semi-annual
Fund's
total
report,
company's
boosted
to
an
$30,792,286
at
resources
time
CLEAR
H>
a
increase of
mutual
-i +
different
common stocks, the
larger hold¬
ings, by industries, being as fol¬
lows: Stores 9.5%; Public Utili¬
ties 8.7%; Chemicals 8.7%; Foods
and Beverages 8.6%; Banks 8.5%;
Finance
and
Insurance
8.0%;
DELAWARE
SCIENCE
78
high
close
of the first half-year.
of
y
re¬
.
share
A MUTUAL FUND
with
and
$25,126,161
on
Dec. 31,
last.
Offered by
per
31, 1954.
In April,
1955, de Vegh Mutual Fund, Inc.,
paid a distribution of $7.36 per
share
from
ment
long-term
capital
dividend from invest¬
a
income
of
21.5
cents
per
share.
Science & Nuclear Distributors, Inc.
i
1500 Walnut
St., Philadelphia 2, Pa.
largest
m!?
J
Asset
outstanding of de Vegh
Mutual Fund, Inc., on June 30,
1955, were 163,181, as compared
with 107,886 on Dec. 31, 1954. To¬
tal assets on June 30, 1955, were
$9,595,805, as compared with $6,098,467 on Dec. 31, 1954.
Fund
OF
Philadelphia
$1,694,511,
rose
or 88.8%, in
the 12 months ended June 30, 1955,
to
an
on
that date.
all-time
total
net
high
of $3,602,626
This compares
of
assets
with
$1,908,115
on
June 30, a year ago, and
with
$2,695,000 at the start of 1955.
The Fund
closed
the first
half-
with 88.74% of its assets in¬
year
in
common
stocks;
6.70%
in corporate bonds; 2.70% in U. S.
Government bonds; 0.61% in preferreds; and the remainder in cash
and receivables.
Roy
R.
President,
in
a
cur¬
told
shareholders: "We have eliminated
second-grade
preferred
80%
reduced common stock
holdings in the more cyclical in¬
dustries like aircraft manufactur¬
ing and increased positions in in¬
dustries
with
relatively more
stable earnings and dividends such
utilities
and
ASSET
ate
ered
is
which
a
intended
speculation,
at 15 cents per share.
It
unrealized
on
securities,
as
to
off-
are
priced
are
the
use
net
value
figure
Value
per
of
$31.28.
On
on
net
30,
last,
$6,857,922, up 48.7% from
$4,610,583 on June 30, 1954. At
end
of
were
March this year, net
$6,172,547. Shares out¬
standing increased to 162,430 from
147,420 a year ago and 159,433
three months
holdings
to
investment
with 82.8%
the
as
be-
This moder-
year.
made
was
about
assets
at
in
business
has
view
progressed
the further increase
and
stock
mon
place.
prices
stocks
bonds
and
good
in
has
that
Proceeds
common
from
com-
taken
sale
of
ore bodies are discovered; for
preferred
stocks
quality without sacrifice
of
and for working capital.
Little Star Uranium Co.,
Inc- was organized in Wyoming
on
c*'
*954, for the purpose,
a™°P& others, of acquiring, -exPl°rin£ and developing uranium
Properties, including producing
o^oes. The company has no operatln& history and no known ore
■
T
re^Jes'
i!tS C^.S1S
a?
of
STATES & Foreign SeCorporation in its report
dated June 30, 1955, the first to
give effect to the merger of United
curities
&
ago.
OF Television-Electronics
Fund for June and
of
the
year
broke
the
all
first
half
previous
records in the Fund's six-year old
history, Chester D. Tripp,
ident, reported.
Gross sales of shares
six
months
reached
ended
International
Securities
ie<
«ran|
Pres¬
sit**
Giving'
International's assets at market
values, had net assets available for
its
outstanding preferred stocks
at
redemption values of $87,940,971.
This
equivalent to $89.28
share on the U. S. & Foreign
per
was
stock
then
when
adjusted
outstanding,
cent 3-for-l
the
net
CUI
to
or
split.
re-
The increase in
available
assets
$29.76
the
reflect
for
D
effect
to
the
IIaIa*
iMaD
stock, after deducting
common
Laramie
f._
above
T\vo
mm
HUIGS Oil
Federal Home
MahLa!
IHuiKOC
issues
note
new
Loan
of
Banks
th*
total-
ing $200,000,000 principal amount
were offered yesterday (Aug. 3)
by the Home Loan Bank Board
through Everett Smith, Fiscal
Agent of the Banks and a nationwide group of securities dealers,
The
the
two
note
issues
are
(a>
;
$125,000,000 Federal Home Loan
Banks 2.40% series B-1956 noncallable consolidated notes dated
S.
U.
&
Foreign
stock
common
During the preceding 12 months
the corporation and U. S. & Inter-
national, then an 80% owned subsidiairy, retired their entire outstanding first and second prestocks.
These
tional
owned
by
volved
U.
S.
&
Foreign, in$31,752,000
net outlay of
a
in cash and securities.
.
poration,
a
t
^
GENERAL
&
Cor-
J955
during the
June
30,
j gQ%
noteg
reported
for the
responding month last year.
Mr.
Tripp reported that
the
record sales, combined with marke appreciation of portfolio secur¬
ities, boosted the Fund's total net
$72,679,016 on Dec. 31,
Net asset value in the same
credit
available
by
Home Loan Banks to their
the
mem-
ber institutions,
Upon issuance of the two new
obligations and payments of
Aug. 15 maturity, note in-
the
$15,577,135 with securities valued
at market quotations on May 31,
share
Per
1955.
the
$24.43
was
a
assets
of
(Special to The Financial Chronicle)
Mass. — Clarence F.
has become associated
with
Hornblower
&
Weeks, 75
Federal Street. He Was formerly
wUh paine^ Webber> Jackson &
Curtis in the commodity departBOSTON,
~~~
I ^ A
I.O./A.
f
With Hornblower & Weeks
$18.88 per share
—
Net
of the Banks will ag-
gregate $460,000,000.
on
earlier,
year
debtedness
for
value
asset
stock
common
May 31,1955, a gain of 30% over
Asset*
/\sseis
of
Un
up
Syndi-
Investors
America,
wholly-
Inc.,
Jones, Jr.
ment.
subsidiary of Investors Di¬
Services,
million
$348.5
months
of
in
1955,
$27.2
million
1954
fiscal
Inc.,
rose
first
the
Fred J.
to
increase
an
over
the
year-end
Dec.
six
of
31,
head of F. J.
Winckler Co., Detroit and a for-
President
™er
Stock
figure
Winckler
pred J. Winckler,
juj
of
Exchange,
the
passed
Detroit
away
2q af the age of 64
$321.3 million, Joseph M. Fitzsimmons,
President of the company,
Henry J. Blackford, Sr.
announced.
record high of $104,769,-
from
consolidated
Aug
15> 1955 and to
funds for making addi-
ncde
versified
cor¬
series D-1955
due
provide
the
month of June, sales
$3,987,947, compared with
l5
Proceeds from the offering wiU
uged to refund $81,000,000 of
lock,
1955
industry
noterLted Aui
^atu?int April 16 19561
dssu^ ifDrked at lOO%
and
be
closed-end investment
managed by Calvin Buishows total net assets of
195^
^^nnfTnnrwf
ser?es C-?956$ non^anab?e
consolidated
Each
tional
~
CARRIERS
2 50%
retirements,
the U. S. & Internasecond
preferred
stock
excluding
net asset value of
whole.
1954.
1 clud^d a
m;nPrQi
nancing, there will be outstanding
1954, U. S. & For- 9,096,091 shares of common stock,
eign, including its interest inU. S.
a
a
?
nf
On June 30,
owned
to
1
"
share basis.
that for the mutual fund
year
i
aPPlications,for
eases' an<? 12
mining leases obtained
lirnr^n *
and^
cate
For
^
lode
^
Sated
period amounted to $3,566,598 or
12% of sales, a rate well below
a
P
unpatented
Corporation, its former subsidiary,
t
Th
properties are
and Dunwalke Securities Corporation, shows net assets of $133,johnson Natrona Albanv Platte
799,568, equivalent to $40.41 per
Goshen
Converse^
Laramie
share on 3,310,815 shares of stock
CounUes Wvo
outstanding, a new high on a per
peak of $29,225,215, up
218% over sales of $9,185,903 re¬
ported for the first half of 1954.
Liquidation of shares in the latest
as
°Wner+
•
mining claims, 166 uranium mming leases obtained from the State
company
SALES
,
company s uranium proper-
UNITED
States
ac-
Qujsition of additional properties;
reinvested in
were
furrprit inonmp
current income.
ferred
June
reached
assets
of
second
reduced
during this 12 months' period was
$38.72.
assets
the
share of
this year the per share
was
N*t
of
35,7%.
banks."
Industry Shares, Inc., on
June 30, 1955, was $42.22, an in¬
crease of $10.94 or 35% from the
the
stock
reduction
Total
tnd.
stock holdings included:
utility, 9.69%; building,
common
of the extent to which recovery in
Growth
year-ago
March 31
end
ginning of the
six months earlier.
common
the
Tri-Continental
compared
stock
holdings,
as
the
common
&
Coffin,
commentary on the Fund's
rent
investment position,
all
Near
of
Electric
These
for
Federal income tax
period rose to $11.69 a share on
June 30, last, from $10.62 a share
large
value
stock, after provision for
possible
of
Other
Writer
Peters,
oni
°
t
645
resources.
?n
June 30, 1954.
on
single equity holding by
industry and accounted for 11.52%
total
with
& Christensen, Inc., Denver, Colo.,
fuSSJ, in the Public offering of 5,000,000
|.or
shares of common stock (par 10
.C0^- cents) Of Little Star Uranium Co.,
Inc- ^ Globe Securities Corp., 40
an $294>891>000 Exchange Place, New York City,
ctort
nr.
general
Shares
assets at the close of the first half-
Oil stocks constituted the Fund's
Associated
SnntJ°Tmpan& ri°oS,V0+ *263'09V
was
Dec.
on
$652,467
with net assets totaling
$19,699,071 on June 30, year ago,
Slock Offered at 15c.
na¬
invest-
quarter
all-
compares
closed-end
per share on June 30, 1955
$58.80 as compared to $56.53
companies in
cje
totaled
the
Corporation, the
largest
VEGH MUTUAL FUND, Inc.,
reports that its net asset value
lated fields.
the
This
Little Star Uranium
appreciation, equalled $41.35 per proceeds to purchase machinery
share on June
30, 1955, for an in- and equipment; to pay for excrease of 14% from the
$36.16 re- ploratory drilling and reconnaisported for Dec. 31, 1954, and .35% sance surveys and also for
mining
from the $30.47 on June 30, 1954. operations
in event commercial
the remainder in
all higher than at the end of any
previous quarterly period in the
Fund's history.
Continental
F.
companies in the nuclear field and
NET
Diversified Investments in the Chemical Field
including the New Science, Nuclear Chemistry.
clear
Closed-End News
NET INVESTMENT assets of Tri-
tion's
cash.
common
The
GROSS
vested
of Key¬
THE
electronics, 3.31%.
RESOURCES
MASSACHUSETTS
On
Gold
This
conformance with the policy pre¬
equal to $37.56
second
the
during
Reductions
Limited.
of Boston
Company;
eliminated
Shares
Oil
Power
Petroleum
Ventures
and
including
companies,
Water
gan
Dutch
and
gains and
During the past six months a
larger proportion of new funds
British
Petroleum; Canadian Superior Oil of Cali¬
fornia;
Great
Plains
Development Com¬
pany of Canada; Price Brothers; Asbestos
Corporation;
and
Conwest
Exploration
Life
7.19%; food, 6.52%; steel, 6.07%;
railroad, 5.33%; automotive,
5.22%; airline, 4.50%; chemical,
3.53%, and electrical equipment
months
June 30,'55
June
on
allocated
were
and
and in the
shareholders
and the United States.
assets
than dou¬
more
appreciation
by-laws to invest up to one-third
Fund's
to
substantial, increase in shares out¬
of its resources outside of Canada
The
months
the last year, reflecting
over
both
12
•
(493), 29
cates
1955,
maturity value of certifi¬
outstanding
was
$62.2
on
June
30,
$1.5 billion, an increase
million
since
the
year-
Henry J. Blackford, Sr., partner
of A. M. Law & Co., Spartanburg,
S.
C., passed away July 28 at the
of 59 following a heart attack.
age
Mr.
Blackford
was
a
member oi
the Midwest Stock Exchange.
The Commercial and Financial Chronicle...
(494)
30
in
The State ol Trade and
What
production
showing
ing, "Steel" adds, is that July operations
Industry
two
businesses
More
7.
Producers, continues
thi^
ordinarily arq. hampered
only
the
be
major
vy-
v+
third
a
bellies, lard, cottonseed
ley,
The index
slump
quarter
31
Institute announced that the op¬
The American Iron and Steel
steelmaking
capacity of the entire industry will be at an average of 94.4% of
capacity for the week beginning Aug. 1, 1955, equivalent to 2,278,000 tons of ingots and steel for castings as compared with
90.7% (revised) and 2,190,000 tons a week ago.
The industry's ingot production rate for the weeks in 1955 is
based on an annual capacity of 125,828,310 tons as of Jan. 1, 1955.
like week
a
month
ago
the rate was 85.9% and pro¬
production
was placed at
1,527,000 tons, or 64.0%. The operating rate is not
comparable because capacity was lower than capacity in 1955.
The percentage figures for 1954 are based on annual capacity of
A year ago the actual weekly
2,073,000 toiis.
124,330,410 tons as of Jan. 1, 1954,
Electric
!&
Bradstreet, Inc., continued
"close at 274.80
vious and
distributed by the electric light
was
industry for the week ended Saturday, July 30, 1955,
estimated at 10,727,000,000 kwh., a new all-time high record.
The
according to
the Edison Electric Institute.
advanced 107,000,000 kwh. above that of
This week's output
previous week, when the actual output stood at 10,620,000,000
kwh. It increased 1,586,000,000 kwh., or 17.4% above the compar¬
able 1954 week and 2,215,000,000 kwh. over the like weqk in 1953.
the
Loadings Fall 1.6% Under the Preceding Week
Loadings of revenue freight for the week ended July 23, 1955,
decreased 12,607 cars or
1.6% below the preceding week, accord¬
ing to the Association of American Railroads.
Loadings for the week ended July 23, 1955, totaled 786,433
increase of 102,152 cars, or 14.9% above the corresponding
week, and an increase of 5,734 cars, or 0.7% above the corre¬
cars, an
1954
sponding week in
1953.
U. S. Automotive
Output Forecast to Drop Less Than
12% Under Ail-Time Weekly Peak Set in
Period Ended April
271.99
prices
fluctuations
in
on
use
Index Trended
activity
week before.
hedging
corresponding
to
recede
instances
most
than the
erable
its moderate uptrend
but
sales
in
The
pressure
last
the
past
small.
were
bread
date
the
futures
cereal
week
week
Wheat
market
earlier.
year
a
to
although
showed
the
smaller
were
subjected to consid¬
the result of ample receipts at major
as
was
terminal markets.
Corn
the
as
crop,
which
time of year.
unusually high
With the agricultural outlook in
the
Southwest
were
orders,
and
best
a
for
in
much
as
year ago.
home
appliances
the
expand
to
sometimes
five
in
retailers
encouraged
30% above
as
the
furniture
their
/
furnishings
high and
were
steady in the rest of the country.
Department store sales on a
country-wide basis as taken from
Federal
for
Reserve
the
week
in¬
Beard's
ended
July 23,
1955, advanced 12% from the like
period of last year. In the pre¬
ceding week, July 16, 1355, a rise
of
10%
of
the
registered from that
period of
1954,
was
similar
for
while
the
four
weeks
ended
July 23, 1955, an increase of 10%
was recorded. For the period Jan.
1, 1955 to July 23, 1955, a gain of
7%
prom¬
ises to be the second largest on record, continued to make excellent
under ideal growing conditions.
progress
at
registered above that of
was
1954.
steady to slightly lower,
was
compare
ago.
year
remained
the
week pre¬
a
to
fayorBuyer at¬
the major wholesale
a
dex
This compared with 273.04
the
continued
greatest
business
export
in
in
the latter
part
trade
with
ress
developed
corn
Retail
in
New
York
City
the past week made further prog¬
year
sales volume
increase
marked
over
Trade
ago.
showing
that
observers
of
a
a
esti¬
A
mated the week's sales would rise
bearish factor in the feed grains was the Department of Agricul¬
5% to 6% ahead of the like week
ture
in
prices
irregularly
moved
lower
active
in
trading.
weeks, Friday, showing stocks of
grains in all positions as of July 1 to be the largest in 13
previous high level at 10,620,000,000 kwh. was attained in the
power
preceding week,
July 26.
on
with
Grain
Oats
High Record in the Week Ended July 30
The amount of electric energy
Car
meats in general
The daily wholesale commodity price index, compiled by Dun
J
arid
pur¬
slightly the past week
centers
Orders
pound of
and its c.aef function
per
of the week.
New Ail-Time
Output Sets Another
tendance
steers.
total of the price
sum
Wholesale Commodity Price
Some
and
and
Moderately Upward the Past Week
erating rate of steel companies having 96.1% of the
duction
rice
cocoa,
is to show the general trend of food prices at the wholesale level.
trade weekly.
For the
oil,
represents the
fooastuffs and
raw
heavily
for the
years,
wholesale cost last week were flour, rye, butter,
lea, eggs, raisins and hogs. Lower where wheat, corn, oats, bar¬
guessing to some extent.
ducers
decline which
Higher in
y+.
and
products
were
continued
area
to materialize has pro¬
Consumers evidently didn't re¬
plenish stocks materially in recent months. Still, since summer
ordinarily is a period of stock accumulation, inventories are
bound to get increasing attention as weeks pass, concludes this
of
This halted
drop of 13.6%.
under
product,not
unchanged at the previous figure of $6.17.
five-week
warm'
its
iru
chased.
and
carried the index to its lowest level
since Feb. 3, 1953,/wnen it stood at $6.13.
The current number
compares with $7.14 on the corresponding date a year ago, or a
a
product. Carry-over into the fourtn quarter may necessi¬
blanking out up to six weeks of production. Certain sheetmakers are cutting back fourth quarter allotments as much as
to
drinks
ably with
The Dun & Bradstreet wholesale food price index for July 26
remained
every
appear
Price Index Held Steady at
Previous Level Last Week
in¬
bakery
house¬
as
Oil
Fresh
The volume of wholesale orders
Wholesale Food
trade journal, are oversold on about
extreme pressure.
fare.
expanded
tate
Failure
in the New England and West South
dips from a year ago,
concentrated
weather
soft
Picnic special¬
emphasized
vegetables,
lrom
particularly -comfort¬
prices, while anticipated oraer cutbacks from the automotive
dustry and other consumers haven't materialized.
population.
were
failed than last year in five regions,
while the Pacific States equalled the 1954 level. There were only
the only declines in mortality occurred
hot weather, Tne seasonal factors were present,
but, surprisingly, they were offset by relentless demand pres¬
sure.
New business has continued to come out aespite higher
Hails
ties
wives
by vacations and
35%.
in the
Central States.
the
makes
South
States.
in the New England
States, down to 4 from 12, and the Mountain States, down to 4
Last week's decline was due largely to equip¬
pre-strike rate.
ment repairs.
24, while a milder upturn was noted
Atlantic casualties held steady at
from
37
to
Pacific
the
14;
the
Central
North
Continued from page 4 •
Thursday, August 4, 1955
the
issued
report,
such
two
years
1954.
Department has been compiling such statistics.
the Federal Re¬
index, department
sales in New York City for
serve
Domestic flour business
store
weeks ago
two
fell off sharply from
to
According
the very heavy vplume consummated in the preceding week, but
a fair aggregate was reported in some types. There was some im¬
the
provement in Spring wheat bakery flours toward the end of the
Board's
the
week
mills protected against a moderate price advance.
as
Coffee
ing
up
prices held
about steady
in demand for
green
a
slowing
coffee owing to prevailing high temper¬
atures which have affected the
use
like period of last year.
In
preceding week, July 16, 1955,
a rise of 6%
(revised) was noted
from that of the previous week.
For the four weeks ended July 23,
the
throughout the week. Buy¬
mostly for immediate requirements, reflecting
was
Weekly period ended July 23,
advanced 5% above that of
1955
of coffee at the consumer level.
Cocoa finished moderately lower
although the market showed
a tendency to firm up at the close, aided by improved
manufac¬
turer demand. Early easiness was induced by reports of increased
offerings from producing countries. Warehouse stocks of cocoa
reported at 247,582 bags, up slightly from the week preced¬
ing, and comparing with 118,432 bags a year ago. Domestic and
increase of 4% occurred.
period Jan.* 1, 1955, to
July 23, 1955, the index recorded
a rise of 2% from that of the cor¬
1955,
an
the
For
responding period of 1954.
were
export demand for lard
lacking and prices continued to work
was
All classes of livestock declined the past week,
downward.
Houston Gulf
reflect¬
Slock To Be Offered
ing slow demand due to the hot, humid weather.
30th Last
sold
Hogs
at
the
lowest
July
prices
since
1946,
and
Sulphur
Sulphur Co. plans
Houston Gulf
some
publicly offer, through Garrett
industry for the latest week, ended July 29,
1955, according to "Ward's Automotive Repprts," assembled an
estimated 164,756 cars, compared with 169,096 (revised) in the
previous week. The past week's production total of cafs and
trucks amounted to 191,591 units, or a decrease of 4,843 units
below that of the preceding week. It was less than 12% under
the all-time high posted at the end of April.
A total of 123,482
wholesale pork cuts have dropped nearly
less drastic than earlier predicted and reports of unfavorable
rains and boll weevil infestation in
some
parts of the belt.
share.
units
Reported sales of the staple in the 14 markets totaled 46,200 bales,
organized on Jan. 21, 1955 for the
purpose
of acquiring; exploring
and
developing sulphur proper¬
ties. It has acquired sulphur leases
The automotive
was
reported for the
same
week
year ago,
a
states "Ward's."
Last week's car output fell below that of the previous week
by 4,340 cars, while truck output declined by 503 vehicles during
the week. In the corresponding week last
year 104,604 cars and
*
18,878
trucks
assembled.
were
Last week the agency reported there were 26,835 trucks made
in the United States. This compared with 27,338 in the previous
week
and
18,878
year
a
Canadian output last week was placed at 9,535 cars and
1,902
In the previous week Dominion plants built 9,688 cars ahd
and for the comparable 1954 week' 5,662
trucks,
2,291
cars
and
1,379 trucks.
and
industrial
failures
parity,
belief that the government
a
surplus
disposal plan
will
from
cotton
.
Apparently undiscouraged by the hot and humid weather in
most sections of the country, consumers sustained their buying at
last week's record pace. Gains from a year ago in retail volume
often substantial.
attention,
Summer
the
when there
level
of
were
291
Failures
from
140
ago.
Among
in
with
last
$5,000, there
and 28 last
Dun
the
&
Bradstreet, Inc.
Casualties were
a year ago when
195 occurred or in 1953
182, but they remained 31% below the prewar
similar
the
liabilities
week,
small
was
in
to
early
attract
to
continued
promotions
an
but did
week
of
of
$5,000
1939.
or
not reach
more
their
increased
toll
of
167
to
a
160
The total dollar volume of retail
of
Fall
favorable
goods
higher than
Summer
a
clearance
quent than they were
were
year
on
unusually low.
exploratory work on these prop¬
As of April 15, 1955, the
erties.
sales
in
the week
was
shares of
The
of
apparel
were
effective.
retailing,
equipment
up
to 101 from 84, while milder increases occurred in
ures
service casualties.
In
of wholesalers dipped to 20 from 26 last week.
contrast, fail¬
More
manu¬
facturing and retailing concerns succumbed than a year ago and
service casualties equalled their 1954 level; the only declines from
last
year
appeared
iri wholesaling
and
construction.
Six of the nine regions reported a rise in failures. The Middle
Atlantic States had a notable increase to 71 from 57 and the East
very
continued to sell well, although volume in haberdashery dropped
below last year's level.
Fans,
ances
a
and
air
conditioners, refrigerators
were
and
outlays for them
were
noticeably higher than
Outdoor furniture and barbecue
equipment continued to sell
of consumer credit, new car
Supported by the liberal use
sustained at a high level.
Food sales at retail remained unusually high, reflecting the
sales
were
record levels of employment
ANGELES,
Calif. —Louis
is
engaging in a se¬
business from offices at
Ardouin
curities
3750 West 54th Street.
Henry Hartmen Opens
(Special to The Financial Chronicle)
SHERMAN
OAKS,
Calif.
—
Hartmen has opened of¬
fices at 13531 Ventura Boulevard
to conduct a securities business.
Henry
Two With Hoskins
(Special to-The Financial
year ago.
well.
LOS
R.
automatic washing
most popular among the major household appli¬
consumer
Opens
(Special to The Financial Chronicle)
generally less fre¬
year ago,
large demand, the consumer reaction to Fall apparel was
frequently favorable. Men's lightweight clothing and sport shirts
construction and commercial
550,000
registration, statement cov¬
these securities is not yet
6%
largely because retailers stocks
While sportswear and beach apparel were in
a
had outstanding
common stock.
company
ago,
Fourteen businesses failed with liabilities in
excess
of $100,000 as against 16 per a week ago.
In all industry and trade groups except
wholesaling, mor¬
tality increased during the week. The sharpest upturns occurred
in manufacturing where the toll climbed to 42 from 29 and in
year.
parts of Humble Dome, Harris
County, Texas, and the initial ob¬
Louis Ardouin
trade
Co. was
was
according to estimates by Dun &
Bradstreet, Inc. Regional estimates varied from the correspond¬
ing 1954 levels by the following percentages: New England, South,
and Northwest +3 to
+7; East +7 to +11; Middle West +11 to
+ 15; Southwest +5 to +9 and Pacific Coast +1 to +5.
year
casualties, those involving' liabilities under
upturn to 41 from 32 in " the previous week
10%
'
Houston Gulf Sulphur
ering
merchandise
response
to
according to
slightly higher than
rebounded
(par one cent) at $1.20 per
stock
usually enthusiastic.
week,
Co., Inc. and Hunter Securities
Corp., both of New York City, an
shares of common
issue of 500,000
jective of this offering is to pro¬
vide the funds to finance further
Trade Volume Holds to Its High Record
Pace of Previous Week
to
&
■
38,300 bales the previous week.
Mill consumption of
during the five-week June period amounted to 849,000
bales, against 779,000 for the same period last year. On a daily
rate basis consumption in June averaged $4,700 bales, compared
with 35,200 in May and 31,800 in June a year ago.
up
week
ended July 28 to 201 from the year's low of 172 in the
preceding
,
•
be
While
Higher the Past Week
v
Following early weakness, cotton prices developed consider¬
able firmness. The upward trend was influenced by talk of higher
were
Business Failures Turned Moderately
Commercial
.
ago.
trucks.
33%% in the past four
weeks.
and incomes and the steady increase
Chronicle)
COLUMBUS, Ohio—Richard M.
Wiltrout
and
•
Edward
-Gordon
joined the ..staff of
Hoskins and Company 79-tH East
Green
have
Number 5452
Volume 182
.The Commercial and Financial Chronicle
..
•The following statistical tabulations
Indications of Current
production and other figures for the
cover
4
latest week
or
month available.
Dates shown in first column
A
week
Business Activity
Latest
month ended
on
and condensate output—dally average
each)
(bbls.)
oil
Crude
„
-
42 gallons
.
(bbls. of July 22
July 22
6,650,250
117,620,000
6,626,400
6,636,700
7,464,000
6,267,550
7,582,000
july 22
July 22
25,964,000
1,921,000
25,726,000
25,850,000
23,565.000
output
output
(bbls.)
1,955,000
1,946,000
1,910,000
Distillate
fuel
oil
unfinished
and
(bbls.)
(bbls.)
at
oil
fuel
(bbls.)
at
Revenue
11,522,000
9,856,000
Domestic
8,156,000
7,615,000
7,525,000
Dollar
157,678,000
31,206,000
112,392,000
45,260,000
22
22
22
22
158.822,000
164,471,000
158,844,000
31,381,000
29,132,000
108,932,000
96,338,000
98,255,000
45,482,000
45,584,000
U.
CONSTRUCTION
(no. of cars)
__
799,040
799,472
construction
Private
Public
644,871
666,237
565,379
State
and
$360,708,000
$439,115,000
.Juiy 28
225,944.000
228,094,000
277,673,000
143,154,000
July 28
140,253,000
132,614,000
161,442,000
119,109,000
July 28
_
126,253,000
89,899,000
110,078.000
.July 28
coal
Bituminous
and
14,000,000
18,454,000
51,364,000
42,715,000
July 23
9,730,000
9,700,000
406,000
463, U00
607,000
519,000
103
971
84
S.
INDUSTRIAL)
AND
—
&
DUN
steel
**10,727,000
10,620,000
10,138,000
July 28
201
172
231
195
4.801c
4.797c
5.176c
July 26
To
of
(E.
M. J.
&
i$59.09
$59.09
$56.59
$56.59
$41.50
*$40.83
$36.50
$27.33
To
Asia
South
Zinc
(St.
at
(East St. Louis)
at
AND
:
Stocks
corporate
Average
EDISON
July
98.000c
94.875c
96.125c
Month
15.000c
15.000c
14.000c
Revenue
14.800c
14.800c
14.800c
13.800c
12.500c
12.500c
12.500c
94.15
95.81
108.52
110.52
OF
111.81
112.19
115.63
110.34
110.52
112.37
108.52
108.88
110.15
Durable
103.47
103.64
103.97
104.14
Nondurable
117.09
107.44
109.06
108.88
109.06
109.06
lJLU.'id
109.24
109.42
109.97
111.44
ASSOCIATION:
(tons)
Production
of
at end of period
(tons)
Unfilled orders
EXCHANGE
—
Odd-lot purchases by dealers (customers' sales)—
>
Number of orders—Customers' total sales
sales
TOTAL ROUND-LOT
EXCHANGE
3.13
404.4
403.8
427.3
203,751
99
88
23
525,731
370,844
106.75
106.91
106.76
107.21
dealers—
239,499
1,264.587
„
9
a
Juiy 9
^u]y 9
•July 9
.July 9
Total sales
initiated on the floor—
Ju]y 9
"JuJy 9
-July 9
purchases
■
J
6ales
July
Total sales
Other
1
transactions initiated off
the floor—
—.—July 9
xu}y 9
-July 9
sales
Other
m —
Total round-lot
Total
-
■
-
-
~
—-r——————————
■"
1,113,252
1,374.389
$75,913,434
$59,401,320
$70,676,763
$45,818,129
1,201,098
1,205,329
8.584
5,503
1,234,998
6,380
918,902
6,425
1.192.514
1,199,826
1,228,618
transactions for-account
of members—
9
*IuJy 9
"Ju{y 9
purchases
sales
Other
July
sales
WHOLESALE
LABOR
-
NEW
PRICES,
(1947-49
=
SERIES
—
$70,324,594
$61,712,211
$39,815,234
241.010
261,690
324,160
265,400
All
cot" m
tnnc
<
as
af
figure.
Jan
tNumber
of
1
farm and foods
not
goods
:
STRUCTURAL
INSTITUTE
CAN
TION)—Month
•150.2
135.8
*16,333,000
*9,500,000
15,835,000
*6,833,000
6,769,000
9,066,000
(AMERI¬
STEEL
STEEL
OF
of
closed
CONSTRUC¬
June:
AND
LABOR—Month
of
*303,343
219,306
♦222,991
290,262
♦$76.30
$71.50
HOURS—WEEKLY
ESTIMATE —U.
AVERAGE
318,150
282,325
$76.11
EARNINGS
FACTORY
_*_-
(tonnage)—estimated
(tonnage)—estimated
Shipments
DEPT.
S.
OF
June:
Weekly Earnings—
manufacturing
goods
82.10
goods
—
♦82.78
76.40
67.83
Durable
♦67.32
64.57
40.7
Durable
38.9
$1.87
$1.81
1.99
goods
1.91
1.70
1.6S
76,200
66,900
16,100
.
1.99
1.70
goods
Non-durable
39.5
40.0
*39.6
$1.87
-
goods
Hourly Earnings—.
All manufacturing
♦41.6
39.9
goods 1
*40.8
41.3
manufacturing
Non-durable
12,400
GAS APPLIANCE MANUFACTURERS ASSOCIA¬
Gas-fired
324] 160
265] 400
Gas
402,490
497,270
326,310
Gas
of
(units)
(units)
shipments
burner
7,500
shipments (units)
shipments (units)
shipments (units)
boiler
operated
Domestic
June:
shipments
furnace
conversion
gas
5,900
182,000
175,100
216,500
range
water heater
321.230
470,800
598.300
346,580
11,951,880
11,849,630
14,787,060
9,580.810
• *
• •
230,400
174,300
15,385,360
139
138
124
138
•138
124
9,927,390
12,273,110
12,320,430
Seasonally adjusted
Unadjusted
LIFE
OF
_
PURCHASES
INSURANCE
INSURANCE
LIFE
1,587.850
1,487,630
1,824,060
1,002,160
258.810
248,100
322,440
199,790
1,327,250
1,276,710
1,533,700
838,780
INSTITUTE
—
Month
—
of
May
1,586,060
1,524,810
1,856,140
9
$2,475,000
$2,076,000
Industrial
607,000
540,000
607,000
Group
452,000
*2,602,000
602,000
$3,612,000
*$5,617,000
$3,285,000
767,182
647,658
119,215
309
849,393
721,139
127,941
313
598,875
507,055
91,470
$2,757,833
46,250
340,182
917,541
194,405,657
104,282,202
$2,731,191
46,746
326,997
927,963
182,829,779
104,458,956
88,898
2,199,031
100,127
2,205,753
$1,859,455
37,205
312,301
846,924
139,187,897
105,582,152
224,458
$1,187,000
925,000
$1,307,500
952,000
Ordinary
$2,553,000
.-___
1,038,570
Total
295,040
272,780
384,000
297,240
SALES
FACTORY
46,300
25,100
48,000
16,050
286,890
254,610
463,810
303,710
PLANTS
319,760
FACTURERS' -ASSN.—Month
333,190
279,710
511,810
476,335
483,272
685,979
327,256
79,710
82,770
93,600
610,482
688,559
866,883
39,470
484,749
690,192
771,329
960,483
VEHICLE
MOTOR
IN
S —AUTOMOTIVE
U.
of
FROM
MANU¬
June:
524,219
Total
of
Number
of
2,894,039
1,626,656
2,243,682
384,820
355,970
464,040
buses
2,219,879
1,627,239
2,609,442
2,575,849
3,328,433
1,882,549
..July 26
July 26
109.9
110.0
110.0
109.7
87.6
87.7
90.9
93.9
101.2
102.0
102.5
82.2
84.5
86.2
(000's omitted):
firms
Member
extended
Credit
118.7
116.3
116.3
§Based on new annual capacity of
124,330,410 tons.
'
reported since introduction of Monthly Investment Plan. **New all-time high
crude runs.
net
value
of
accounts—
balances.-——
in banks in U. S
customers'
of
debit
customers——
to
hand and
on
margin
carrying
customers'
Total
free
—
credit balances—
listed shares.
—
87.3
114.2
351.
EXCHANGE—As of June 30
255,310
2,224,622
2,864,393
—
trucks
motor
NEW YORK STOCK
2,359,225
cars__
passenger
of
Number
vehicles
of
number
Number
Total
Ulncludes 848,000 barrels of foreign
1955, as against Jan. 1, 1954 basis of
orders
FABRICATED
261,690
,,y
-
goods
Nondurable
578,240
Jujy 2°
July 26
Cities "other than
100.5
151.3
16,481,000
manufacturing
Durable
Market
—
♦Revised
All
Cash
foods
Meats
manufacturing
■,
number of employees in manufac¬
turing industries—
2~41~6l6
U. S. DEPT. OF
products
Processed
5,307,000
*104.2
(1947-49 Average —100)—
TION—Month
100):
commodities
Farm
•
Payroll Indexes
7,130,000
Avge.=100)—
manufacturing
Gas
Commodity Group—
All
(1947-49
*5,356,000
912,477
$59,386,239
July 9
Short sales
Total
9
/
Total purchases
Short sales
Total sales
Indexes
12,437,000
*7,535,000
(000's omitted):
«Ju|y 9
sales
Other
workers)
goods
OF
THE
FEDERAL
RESERVE
SYSTEM—1947-49=100—Month of June:
FOR ACCOUNT
DEALERS AND SPECIALISTS:
specialists in stocks in which registered—
TRANSACTIONS
Short sales
(production
♦12,891,000
of
SERIES—Month
ERNORS
—July 9
July 9
OF MEM¬
purchases
Total
30
DEPT.
INDUSTRIAL PRODUCTION—BOARD OF GOV¬
Xu}y 9
—
Other transactions
13,016,000
6,913,000
S.
50,188,984
105.2
April
51,450,305
of
goods
Employment
All
at
32,930,572
$585,775,000
5,421,000
customers
38,283,197
$651,058,000
51,567,416
_
PAYROLLS—U.
manufacturing
Durable
971,410
STOCK SALES ON THE N. Y. STOCK
ROUND-LOT STOCK TRANSACTIONS
MEMBERS (SHARES):
Short sales
t
AND
Non-durable
BERS, EXCEPT ODD-LOT
Other
All
38,139,741
$644,841,000
9,568,000
ultimate
of
LABOR—REVISED
All
Q
—
Total sales
Total
Number
All
■».
sales
Transactions of
consumers—
omitted)
customers—month
Hours—
Short sales
BOUND-LOT
ultimate
1
Contracts
642,619
round-lot sales—
Other
to
(000's
ultimate
3.09
ACCOUNT OF
FOR
Total
AND
403.6
,
607,016
i.vJujy u
";u}y 9
July 9
Short sales
Other
3.22
3.17
258,244
m
dealers—
Round-lot purchases by
Number of shares—
3.22
3.20
280,600
Jujy 9
si—-July 9
shares—Total sales
Number of
3.23
3.21
77
~TU!y
Dollar value
Round-lot sales by
»
3.22
225,674
—July 9
sales
sales
short
3.50
228,679
July
other
3.51
,3.31
94
-"J,
value
Customers'
3.53
3.33
COMMISSION:.
Number of shares
Customers'
1,545,401
19,285,000
7,595,000
April
3.16
233,721
23
23
23
(customers' purchases)—t
'
Dollar
of
from
EMPLOYMENT
3.04
3.23
ACCOUNT OF ODDON N. Y. STOCK
SECURITIES EXCHANGE
sales by dealers
Odd-lot
113,307
1,720,619
18,302,000
INSTITUTE:
sales
April
2.87
3.25
3.54
PRICE INDEX—
ITOCK TRANSACTIONS FOR ODD-LOT
LOT DEALERS AND
SPECIALISTS
M
3.14
3.05
3.14
July 29
.
activity
OIL, PAINT AND DRUG REPORTER
1949 AVERAGE =109
3.23
3.15
264,622
—July
July
July
July
,
—
(tons)
Percentage
.
3.07
3.34
2
Aug.
INDEX
3.25
3.25
2
PAPERBOARD
Kilowatt-hour
2.43
3.08
*ug- 2
-Aug. z
Group
Orders received
1
100.71
2.81
2.94
3.26
Aug. 2
:
Group
COMMODITY
NATIONAL
108.88
11.000c
,
3.17
2
Group
MOODY'S
2.96
Z
Aug.
___
Utilities
142,419
1,630,454
18,257,000
All
Aug. 2
-
Baa
Public
778,558
1,402,274
8,221,440
128,823
[
of July 2
as
703,240
1,713,624
10,432,247
June:
2
*Jug" 2
A
Industrials
849,116
2
1,509,199
9,737,339
July 2_
of
as
July
month of June
ELECTRIC
29.650c
108.52
AUg.
Railroad
392
548
COM¬
OF
2_____
29.700c
*tug-
i—
_
\zzizzzzz:
2,243
Estimated
Ann
a
DEPT.
—
of
spindles active
36.550c
AVERAGES:
U. S. Government Bonds
„
BALES:
June____
as
Linters—Consumed
35.700c
—™gg"
Group
BOND YIELD DAILY
MOODY'S
of
storage
37.225c
Ra?lroad~ Group
Group
;___
280
400
public
15.000c
"""""""""ZIZIZIIIIII Aug.
Utilities
tons)
tons)
consuming establishments
35.700c
'
A*
Public
.
In
98.000c
corporate
Industrials
(net
LINTERS
36.275c
U. S. Government Bonds
Average
tons)
___
(net
month
35.700c
27
27
27
£7
27
27
DAILY AVERAGES:
PRICES
MOODY'S BOND
tons)
MERCE—RUNNING
108.34
at
Louis)
(net
tons)
America
106.92
(New York)
Lead
145,014
43,064
anthracite
America
Central
(net
93.92
Juiy
iu!y
7uJy
"JuJy
July
July
/
145,406
102,540
MINES)—
(net
109.97
Lead
at
147,847
145,666
28,619
OF
Pennsylvania
of
and
111.62
refinery at
Straits tin (New York)
Export
191,272
175,513
(BUREAU
May:
Europe
QUOTATIONS):
'
Domestic refinery at
549,562
187,667
tons)
North
Cotton
Electrolytic copper—
587,991
____
In
5.174c
.July 26
METAL PRICES
740,834
445,*667
212]oi9
of
9,139,000
.July 26
(per lb.)
834,152
775,658
EN¬
municipal
exports
Consumed
IRON AGE COMPOSITE PRICES:
Finished
and
(net
COTTON
(COMMERCIAL
BRADSTREET, INC
$1,574,986
1,105,886
657,686
construction
Undesignated
July 30
FAILURES
$1,881,544
l]026,'477
—
Month
—
43,396,000
$588,626,000
$1,684,163
CONSTRUCTION
NEWS-RECORD
87,665,000
$685,846,000
construction
To
84
ELECTRIC INSTITUTE:
■DISON
84,964,000
$654,576,000
construction
S.
Month
To
AVERAGE
SYSTEM—1947-49
between
omitted):
EXPORTS
COAL
7,103,000
INDEX—FEDERAL RESERVE
July 23
= 100
SALES
STORE
9,400,000
July 23
Pennsylvania anthracite (tons)
DEPARTMENT
shipped
and
Federal
U.
(tons)
lignite
U.
State
MINES):
(U. S. BUREAU OF
stored
100.655,000
-
Federal
(000's
Public
$262,263,000
municipal
OUTPUT
59,715,000
;
Private
$366,197,000
/
COAL
52,865,000
countries
ENGINEERING
July
Total
July 28
construction
80,970,000
39,790,000
___!
—
goods
on
GINEERING
684,281
621,304
ENGINEERING
—
15.362,00(1
138,767,000
credits
Total
CIVIL
? 786,433
July 23
July 23
construction
S.
142,919,000
11,534,000
I"""—III
_
53,585,000
exchange
foreign
NEWS-RECORD:
Total
$246,264,000
188,114,000
BANK
30:
31,069,000
'
(number of cars)
freight received from connections
ENGINEERING
CIVIL
1
freight loaded
Re/enue
11,167,000
RAILROADS:
ASSOCIATION OF AMERICAN
warehouse
of
shipments
Based
July
July
luly
july
at
at
oil
Distillate fuel
Residual
(bbls.)
gasoline
$206,901,000
12,467,000
112,377,000
June
10,871.000
7,857,000
July 22
July 22
(bbls.)
Stocks at refineries, bulk terminals, In transit, in pipe lines—
Finished
100
OUT¬
RESERVE
YORK—As
NEW
Domestic
Residual fuel oil output
Kerosene
103
service
ACCEPTANCES
Exports
(bbls.)
output
in
83
188,662,000
installed
OF
I
Ago
Month
$216,316,000
units
DOLLAR
STANDING—FEDERAL
6,774,000
Year
Previous
RAILROADS—
Imports
(bbls.)
Kerosene
AMERICAN
of that date:]
June:
Locomotive
1,527,000
2,073,000
*2,190,000
OF
of
BANKERS'
Crude runs to stills—dally average
Gasoline
§2,278,000
.Aug. 7
7T'
INSTITUTE:
PETROLEUM
are as
Month
ASSOCIATION
Month
castings (net tons)
Steel Ingots and
f
of quotations,
cases
Latest
64.0
85.9
Equivalent to—
AMERICAN
in
or,
Ago
Ago
either for* the
are
.
that date,
Year
Month
*90.7
§94.4
-Aug. 7
operations (percent of capacity).
Indicated steel
or
Previous
Week
STEEL INSTITUTE;
IRON AND
AMERICAN
31
(495)
j
103.9
bonds
Member borrowings on U. S. Govt, issues—
Member borrowings on other collateral—
Market
UNITED
value
STATES
BUREAU
125,828,310
record.
(000's
Exports
Imports
OF
of
listed
EXPORTS
CENSUS
—
1,235,918
AND IMPORTS
Month of June
omitted):
$1,114,000
946,371.
i-
I
The Commercial and Financial Chronicle...
Thursday, August 4, 1955
(496)
32
ADDITIONS
if INDICATES
SINCE
Securities Now in Registration
Uranium & Oil Corp.
of notification) 15,000,000 shares of com¬
mon stock. Price—At par (one cent per share). Proceeds
—For mining operations.. Office—65 East Fourth South
Academy
June 10 (letter
St, Salt Lake City, Utah.
Investment Co., same city.
Underwriter—Western States
^ Admiral Finance Corp., St. Louis, Mo.
,
July 29 filed $1,000,000 of participating junior subordin¬
ated sinking fund debentures due Sept. 1, 1970.
Price
—At 100% of principal amount.
Proceeds — To retire
5513,182.50 of outstanding junior subordinated deben¬
series B, and for expansion and working capital.
Underwriter — Paul C. Kimball & Co., Chicago, 111.
tures,
Offering—Expected early in September.
Atomic
equipment, and working capital. Office — 1405
Mesita Road, Colorado Springs, Colo. Underwriter—A. H.
Vogel & Co., Detroit, Mich.
tional
Automatic
to be offered in units of five preferred
shares and one common share.
Price — $50 per unit.
Underwriter — Paul C. Kimball & Co., Chicago, 111.
10 cents)
(par
Offering—Expected early in September.
(letter of notification) 300,000 shares of class
A common stock. Price—$1 per share. Proceeds—For oil
20
Office—1508 Capitol Ave., Houston,
Underwriter — Paul C. Ferguson & Co., same ad¬
operations.
and gas
Tex.
Nev.
of notification) 27,000 shares of 7% cumu¬
lative preferred stock (par $10) and 27,000 shares of
common stock
(par $1) to be offered in units of one
share of each class of stock. Price—$11 per unit. Pro¬
ceeds—For working capital, etc. Office—206 No. Vir¬
June 27 (letter
Underwriter—Senderman & Co.,
ginia St., Reno, Nev.
address.
same
Lake City, Utah
Beehive Uranium Corp., Salt
May 26 (letter of notification) 20,000,000 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining
Office
expenses.
—
156 East Third
Oklahoma City, Okla.
Black Panther Uranium Co.,
July 12 filed 500,000 shares of common stock (par 10
cents).
Price—$1 per share. Proceeds—To explore and
drill leases and claims in State of Utah. Underwriter—
Porter,
&
Stacy
Co.,
Tex.,
Houston,
"best efforts
on
basis."
Utah
3,000,000 shares of com¬
cents per share). Pro¬
ceeds—For expenses incident to mining operations. Of¬
fice—403 Felt Building, Salt Lake City, Utah.
Under¬
writer—J. E. Call & Co., Salt Lake City, Utah.
(letter of notification)
July 8
Co., Ltd.
stock
(par $1). Price — 50 cents per share. Proceeds—For
general corporate purposes. Underwriter—Maine Invest¬
Iteb. 17 (Regulation "D") 600,000 shares of common
ment
Sept 1. Price—$15 per share.
Proceeds—To expand
production facilities and/or repair of building and equip¬
ment; to increase inventories; and for working capital.
Office—4327-63 Duncan Ave., St. Louis 10, Mo. Under¬
on
Bojo Uranium Co., Salt Lake City,
Asbestos
American
July 6 (letter of notification) 19,124 shares of common
stock (par $10) being offered for subscription by stock¬
holders of record June 1 on a l-for-4 basis; rights expire
Co., Ltd.
Price—At
stock.
mon
(10
par
Montreal, Can.
July
1, 1975 to be offered for subscription by common stock¬
Bonnyville Oil
& Refining Corp.,
ft American Enka Corp., Enka, N. C. (8/16)
July 28 filed 223,530 shares of common stock (par $5)
to be offered
for subscription by stockholders on the
basis of one new share for each five shares held about
April 29 filed $2,000,000 5% convertible notes due
Price—To be sup¬
plied by amendment. Proceeds—For new plant facilities
and improvements.
Underwriter—Harriman Ripley &
holders and 100% to public.
Aug. 16; rights to expire on Aug. 30.
Co. Inc.,
•
New York.
(8/9)
shares of common stock (par $25)
to be offered for subscription by common stockholders
on the basis of one share for each five shares held on
June 15 filed 736,856
(with
23.
an
oversubscription privilege); rights ex¬
Price—To -be supplied by amendment.
Proceeds—To be applied to the purchase of equity se¬
curities of subsidiaries or to replace other corporate
pire
Aug.
-
Underwriter—To be deter¬
Probable bidders: Blyth
& Co., Inc.; The First Boston Corp.; Lehman Brothers;
Glbre, Forgan & Co. and W; C. Langley & Co. (jointly).
Bids—To be received at 165 Broadway, New York 6,
funds used for that purpose.
mined
held.
stock
and
costs
general
by competitive biding.
N. Y. up to 11 a.m. (EDT) on
Aug. 9.
Proceeds—For development
corporate
purposes.
Underwriter—
Statement effective June 21.
None.
Boren Oil & Gas
American Natural Gas Co.
Aug. 9
$100 of notes for each 100 shares of
Price—95% of principal amount to stock¬
at rate of
holders
Proceeds—To pay
Price—At 100% of principal amount.
debt; for drilling expenses and development
program.
Underwriters — Burt, Hamilton & Co., Inc.,
Dallas, Tex.; and N. R. Real & Co., Jersey City, N. J.
current
Electric
California
Power
by competitive bidding. Probable bidders:
Carl M. Loeb, Rhoades & Co. and Bear, Stearns & Co.
determined
(jointly); Kidder, Peabody & Co.; Lehman Brothers;
Lynch, Pierce, Fenner & Beane. Bids—Scheduled
up to noon (EDT) on Aug. 23.
Merrill
Underwriter—N one.
July 2 filed $6,000,000 of first mortgage bonds, due 1985.
Proceeds—For reduction of bank loans. Underwriter—To
if American Telephone & Telegraph Co.
Aug. 2 filed $650,000,000 of convertible debentures to be
offered for subscription by stockholders (probably on
a basis of $100 of debentures for each eight shares held).
Price—To be filed later by directors.
Proceeds—For
construction program.
Underwriter—None.
Approved Finance, Inc., Columbus, Ohio
(letter of notification) 5,000 shares of common
July 13
stock
(no par) to be offered for subscription by stock¬
at rate of one-half share for each share held
holders
as
of July 22.
eral funds.
Ohio.
Price—$60
Office
—
39
Proceeds—For gen¬
East Chestnut St., Columbus,
per
share.
Underwriter—None.
Arizona
Amortibanc, Phoenix, Ariz.
April 4 (letter of notification) 300,000 shares of com¬
mon stock, class A.
Price—At par ($1 per share). Pro¬
ceeds—For working capital. Office—807 West Washing¬
ton
St., Phoenix, Ariz.
Underwriter—First National Life
Insurance Co. of Phoenix, same address.
to be received
Electric
Power
(8/30)
Co.
by competitive bidding. Probable bidders:
be determined
Halsey, Stuart & Co. Inc.; Blair & Co. Incorporated;
White, Weld & Co.; Blyth Ik Co., Inc. Bids—Scheduled
to be received up to noon (EDT) on Aug. 30.
&
Hecla,
Inc.
June 9 filed 113,592 shares of common
stock (par $5) to
be offered in exchange for all of the issued and out¬
standing capital stock of Goodman Lumber Co., Good¬
man, Wis., on the following basis: 18 shares for each
share of Goodman common stock; seven shares for each
share of Goodman 2nd preferred stock; and eight shares
for each share of Goodman 1st preferred stock; offer to
terminate on Sept. 15, 1955 (subject to withdrawal by
Calumet if the required number of Goodman shares have
not been deposited and accepted within 30 days from the
date of the mailing of the prospectus to the Goodman
stockholders). Underwriter — None. Statement effec¬
tive
Petrofina
Ltd.
(Montreal, Canada)
'
July 15 filed 1,434,123 shares of non-cumulative par¬
ticipating preferred stock (par $10), of which 270,943
shares are to be offered in exchange for shares of $1
par capital stock of Calvan Consolidated Oil & Gas Co.
be
the
basis
offered
of
one
share
of
Canadian
in exchange for shares
Petrofina
for
Western Leaseholds Ltd.
or
1,163,180 shares to
of common stock of
Leasehold Securities Ltd. on
the basis of three shares of Canadian Petrofina for each
10 shares of Western Leaseholds
or
Leasehold Securities
stock held. Underwriter—None.
Canadian Uranium Mines,
Ltd., Montreal, Canada
(regulation "D") 2,000,000 shares of common
stock .(par one cent).
Price—15 cents per share. Pro¬
ceeds—For exploration and development expenses. Un¬
derwriter—Tellier & Co., Jersey City, N. J.
June
Boston
Philadelphia
Pittsburgh
San Francisco
Private Wires to all
offices
Chicago
Cleveland
Uranium Co., Moab, Utah
notification) 300,000 shares of common
stock (par five cents). Price—$1 per share. Proceeds—
For mining expenses.
Underwriter—Universal Invest¬
ment Corp., Washington, D. C.
June 8 (letter of
3
Carbon Uranium Co.
(Utah)
April 27 (letter of notification) 746,280 shares of com¬
stock (par one cent). Price — 25 cents per share.
mon
(N. Y.);
May 31 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
Office—130 West 42nd
Underwriter—United Equities
Co., 136 Liberty Street, New York, N. Y.
For
general corporate purposes.
Street, New York, N. Y.
it Cheyenne Mining & Uranium Co. July 28 (letter of notification) 40,000 shares of common
stock (par 10 cents).
Price—$5 per share. Proceeds—
For mining expenses.
Office — 512 Majestic Building,
Underwriter—None...
Cheyenne, Wyo.
Chieftain Uranium Mines, Inc. - ;
•
/
April 22 (letter of notification) 4,000,000 shares of capi¬
tal stock. Price—At par (five cents per share). Proceeds
—For mining operations. Office—223 Phillips Petroleum
Bldg., Salt Lake City, Utah.
Underwriter—Empire Se¬
curities Corp., same city.
Clad
(Victor V.)
Co., Philadelphia, Pa.
of common
25 cents). Price—$2.50 per share. Proceeds—
For equipment and workrng capital. Underwriter—Bar¬
rett Herrick & Co., Inc., New York.
(letter of notification) 120,000 shares
June 17
stock (par
Clad-Rex Steel
Co., Denver, Colo.
notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To re¬
tire outstanding debts and for working capital. Office—
40th Ave. and Ulster St., Denver, Colo. UnderwritersMountain States Securities Corp. and Carroll, Kirchner
June 6 (letter of
&
Jaquith, Inc., both of Denver, Colo.
,
•
★ Coastal Finance Corp., Silver Spring, Md.
July 21 ( letter of notification) not in excess of an ag¬
gregate of $300,000 of class A common stock (par $10)
to be offered first to stockholders of record July 27 on
a basis of one new share for each six shares held.
Price
Proceeds—To reduce bank loans and
working capital.
Baltimore, Md.
★
Underwriter—W. E. Hutton & Co.,
Colohoma Uranium,
Inc., Montrose, Colo.
(9/1)
April 21 filed 2,960,000 shares of common stock (par on#
cent), of which 2,500,000 shares are to be offered pub¬
licly. Price—50 cents per share. Proceeds—For explora¬
tion and development expenses and for general corpor¬
ate
purposes.
.
Underwriters—-General Investing Corp*
York; and Shaiman & Co., Denver,
Colo.
Colorado Oil & UranuimCorp.
■
June 7 (letter
stock
For
of notification) 300,000
Bldg., Denver, Colo.
same city.
i.
shares of common
(par 20 cents). Price—-$1 per share. Proceeds—
mining activities. Office — 350 Equitable
oil and
Underwriter—Birkenmayer & Co.,
Colzona Oil & Uranium Corp.,
Denver, Colo.:
April 29 (letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For mining expenses.
Office—1300 Larimer
St., Denver, Colo. Underwriter—Peters,
tensen, Inc., Denver, Colo.
Community Credit Co.,
Writer & Chris-
Omaha, Neb.
(letter of notification) 1,000 shares
cumulative preferred stock.
Price—At par
of 5%%
6
capital. Office—3023
Underwriter—Wachob-Bender
working
Proceeds—For
share).
St., Omaha, Neb.
Farnam
($100 per
Corp., same city.
Confidential Finance Corp., Omaha,
Neb
(letter of notification) 150,000 shares of 7%
cumulative preferred stock (par 95 cents) and 15,000
shares of common stock (par one cent) to be offered in
units of 10 shares of preferred stock and one share of
common stock.
Price — $10 per unit. Proceeds — For
March
11
Underwriter—J. J. Riordan & Co., Ino,
working capital.
42 Broadway,
New York City.
Conjecture Mines, Inc., Coeur d'Alene, Idaho
July 20.
Canadian
each four shares of Calvin stock and
-
Colo.
Cedar Springs
June
Calumet
on
New York.
erty and equipment, construction of additional facilities,
etc. Underwriter—Mountain States Securities, Inc., Den¬
New
(8/23)
Co.
July 15 filed 230,000 shares of common stock (par $1).
Proceeds—To reduce bank loans. Underwriter—To be
California
Denver, Colo.
Ranch Corp.,
for
Republic Investors, Inc., Dallas, Texas
July 15 filed 800,000 shares of common stock (par $1).
Price—$10 per share. Proceeds—For working capital, etc.
American
Caribou
—$28.50 per share.
Corp., Wichita Falls, Texas
July 26 filed $600,000 of 6% convertible debentures due
July 15, 1975, to be initially offered for subscription by
stockholders of record July 15 on the basis of $100 of
debentures for each 100 shares (or fraction thereof held).
Underwriter—J. E. Call &
July 15 filed 505,000 shares of common stock (par $1.)
Price—$4 per share. Proceeds—For acquisition of prop¬
Central Reserve Oil Co.
St. Louis, Mo.
Baldor Electric Co.,
ISSUE
Co., Salt Lake City, Utah.
Statement effective.
city.
REVISED
Proceeds—For mining costs.
ver,
filed 540,000 shares of common
South St., Salt Lake City, Utah. Underwriter—Columbia
Securities Co., Denver, Colo., and Salt Lake City, Utah.
dress.
Allstates Credit Corp., Reno,
3
writer—None.
Development Corp.
Allied Industrial
June
Inc.
Remote Systems,
stock (par 50
cents). Price—$3.75 per share. Proceeds—For manufac¬
ture of Teleac Sending and Receiving Units, working
capital and general corporate purposes. Office—Balti¬
more, Md.
Underwriter—Mitchell Securities, Inc., same
March
+
if Admiral Finance Corp., St. Louis, Mo.
July 29 filed 50,000 shares of 60-cent cumulative pre¬
ferred stock (par $5) and 10,000 shares of common stock
Colorado Springs, Colo.
Research Corp.,
July 11 (letter of notification) 87,500 shares of common
stock (par $1). Price—$2 per share. Proceeds—For pay¬
ment of notes and account payable, purchase of addi¬
ITEMS
•
PREVIOUS
May 5 (letter of notification) 200,000 shares of common
stock (par 10 cents).
Price—25 cents per share. Pro¬
ceeds—For mining expenses. Office—326 Wiggett Bldg.,
Coeur
Underwriter—M. A. Cleek, Spo¬
d'Alene, Idaho.
kane, Wash.
Consolidated
Sudbury Basin
Mines,
Ltd.,
Toronto, Canada
Jan. 31 filed 3,000,000 shares of common stock (no
par).
Proceeds—For
exploration and development of properties. Underwrite*
Price—To
be
supplied
sold
be
by amendment.
Toronto
—Stock
to
through
underwriters or selected
on
Stock
Exchange
or
dealers in United
States.
★ Consolidated Water Co. (8/5)
July 21 (letter of notification) 26,000 shares of class A
common stock
(par $10). Price—$11.50 per share. Pro¬
ceeds—To
repay
outstanding notes. Underwriters—The
Wis., Harley, Hayden & Co.,
Bond & Share Corp.,
Milwaukee Co., Milwaukee,
Madison,
Wis.;
and Indianapolis
Indianapolis, Ind.
Volume 182
Consumers Power Co.
June 24 filed
373,689 shares of common stock (no par)
being offered for subscription by common stockholders
the
on
of
as
basis of
one
share
new
July 21; rights to expire
each
for
20
shares
held
Aug. 5. Unsubscribed
shares to be offered to
employees of company and its
subsidiary. Price—$45.25 per share. Proceeds—For con¬
struction
(497)
Number 5452... The Commercial and Financial Chronicle
on
Underwriters
program.
Kuhn, Loeb & Co.;
Ladenburg, Thalmann & Co.; Allen & Co.; Blair & Co.
Incorporated; and Salomon
—
Bros.
Copper Blossom Uranium
&
Hutzler.
May 6 (letter of notification) 225,435 shares of common
stock (par five cents). Price—At market (estimated at
about 15 cents per share). Proceeds—To selling stock¬
holder who received these shares in exchange for shares
of Kontika Lead & Zinc Mines, Ltd. Office—205 Star
ket.
New York.
Arches
Co., Spokane, Wash.
Dawn Uranium & Oil
shares of com¬
Proceeds—For
exploration. Office—726 Paulsen Bldg.,
(letter of notification) 1,500,000
stock. Price — 10 cents per share.
Mining Co.
(letter of notification) 5,000,000 shares of capi¬
(par one cent). Price—Five cents per share.
Proceeds—For mining operations.
Office—65 East 4th
mon
South,
tal
stock
Salt Lake City, Utah.
Securities
Corp., same city.
Underwriter
Empire
—
Copper Blossom Uranium & Mining Co.
June 24 (letter of
notification) 5,000,000 shares of capital
stock (par one
cent). Price—Five cents per share. Pro¬
ceeds—For
mining expenses. Office—65 East 4th South,
Salt Lake City, Utah.
Underwriter—Empire Securities
Corp., same city.
Cordillera Mining Co.,
Denver, Colo.
June 8 (letter of
notification) 2,995,000 shares of common
stock. Price—At par
(10 cents per share). Proceeds—
For mining operations.
Offices
738 Majestic Bldg.,
uranium and oil
Empire State Bldg., same city.
to
shares
other
corporate purposes.
and H. Hentz & Co., both of Miami
mon stock
(par one cent). Price—10 cents
Proceeds—For mining expenses. Office—404
per
com¬
share.
Coso Uranium,
Inc., Long Beach, Calif.
May 31 (letter of notification) 3,000,000 shares of capi¬
Price—At par
(10 cents
share). Proceeds
per
par
Beach, Fla.
Fairway Uranium Corp., Salt Lake City, Utah
May 23 (letter of notification) 275,000 shares of capital
stock (par 50 cents).
Price—$1 per share. Proceeds—
For mining expenses.
Office—2320 South Main Street*
Salt Lake City, Utah.
Underwriter — Eliason, Taylor*
2,999,000 shares of com¬
(par one cent). Price—10 cents per share.
Proceeds—For oil and gas operations.
Office—Denver
June 23
(letter of notification)
stock
mon
Club Bldg., Denver,
ner
& Jaquith, Inc.,
Colo. Underwriter—Carroll,
Denver, Colo.
Kirch-
Cafarelli Co., Las
Salt Lake City, Utah
(letter of notification) 2,000,000 shares of capital
Price—At par (15 cents per share). Proceeds—
Deseret Uranium Corp.,
University
Building, Denver, Colo. Underwriter—Peters, Writer &
Christensen, Inc., Denver, Colo.
tal stock.
300,000 shares of capital stock. Price—A§
($1 per share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Tratf
Bldg., Philadelphia, Pa. Underwriter—None.
Jan. 6 filed
Denver-Golden Oil & Uranium Co.
Cortez Uranium &
Mining Co., Denver, Colo.
May 27 (letter of notification) 3,000.000 shares of
Electronics Co. of Ireland
Proceeds—To
capital and
Underwriters—Atwill & Co.
payable and for working
—
Denver, Colo., and 317 Main St., Grand Junction, Colo.
Underwriter—Lasseter & Co., Denver, Colo.
None.
share.
employees at $2.75 per
accounts
reduce
—For
mining expenses. Office—2485—American Ave.,
Long Beach 6, Calif. Underwriter—Coombs & Co., of
Los Angeles,
Inc., San Francisco and Los Angeles, Calif.
Cromwell Uranium & Development
Co., Inc.
May 25 (regulation "D") 300,000 shares of common stock
(par five cents). Price—$1 per share. Proceeds—For
exploration and development expenses, etc.
Offices—
Toronto, Canada, and New York, N. Y. Underwriter—
James Anthony Securities
Corp., New York.
June 9
stock.
Office—527 Atlas Bldg., Salt
For mining expenses.
Farm Family
(in denominations of $250 each). Proceeds—To provide
company with necessary funds to comply with require¬
ments of surplus to policyholders under New York and
other state laws. Underwriter—None.
Inc.
cent).
(par one
Fidelity Insurance Co., Muliins, S. C.
(letter of notification) 86,666 shares of com¬
mon stock (par $1).
Price—$1.87^ per share. Proceeds
—To increase capital and surplus.
Underwriters—MoDaniel Lewis & Co., Greensboro, N. C.; Dietenhofer
Proceeds—For mining operations.
June 20
mon
(letter'of notification) 1,750,000 shares
—For mining
March 25
of com¬
Heartfeld, Southern Pines, N. C.;
Spartanburg, S. C.
cents per share). Proceeds
stock. Price—At par (10
and Calhoun & C4X*
it First Investors Corp., N. Y.
July 28 filed (by amendment) an additional $40,000,000
of Periodic Payment Plans and Single Payment Plans.
Office—1226-1411 Fourth Ave.
expenses.
Price—At 100% of principal amount
local organization.
-
shares of com¬
Price—10 cents per share.
Office — 343 South
State St., Salt Lake City, Utah.
Underwriter — J. W.
Hicks & Co., Inc., Denver, Colo.
Dinosaur Uranium Corp., Seattle, Wash.
stock
N. V-
$1,500,000 of 5% debentures to be offered
directly to members of the American, Farm Bureau
Federation and to State Farm Bureau Federations and
April 18 (letter of notification) 3,000,000
mon
Vegas, Nev.
Mutual Insurance Co., Albany,
June 28 filed
Lake
and
City, Utah. Underwriters—Western Securities Corp.
Potter Investment Co., both of Salt Lake City, Utah.
Desert Sun Uranium Co.,
Building, Moab, Utah.
it Educators' Investment Corp. of Alabama
July 20 (letter of notification) 100,000 shares of capital
stock (par $1), of which 74,800 shares are to be offered
publicly at $2.50 per share and 25,200 shares to in¬
corporators at $1.25 per share.
Proceeds—For capital
and surplus.
Office—Birmingham, Ala.
Underwriter—►
it Denison Corp., N. Miami, Fla.
July 20 (letter of notification) 100,780 shares of class A
common
stock (par 10 cents), of which 91,380 shares
are
to be offered to public at $3 per share, and 9,400
June 24
Proceeds—For investment.
Durango Kid Uranium Corp., Moab, Utah
April 1 (letter of notification) 30,000,000 shares of capltal stock. Price—At par (one cent per share). Proceed
—For mining expenses. Underwriter—Guss & Mednlck,
,
Underwriter—Justin Steppler, Inc.,
Bldg., Casper, Wyo.
June 16
&
★ Dividend Shares, Inc.
A
Aug. 1 filed (by amendment) an additional 7,000,000
shares of capital stock (par 25 cents). Price—At mar-
Wyo.
Uranium Co., Casper,
Crown
33
Bldg,, Seattle, Wash.
Five States Uranium
Corp.
(letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Pro¬
ceeds—For mining expenses. Office—1019 Simms Bldg.,
June 30
NEW
•
V-
August 5
Maule
(Friday)
to
Fenner
&
Beane)
and
Foremost Dairies,
Common
*
stock (par $100),
Common
Noel & Co.)
August 9 (Tuesday)
Gas
Co
Common
(Offering to stockholders—bids 11
EDT)
a.m.
Dairies, Inc..
&
Co.
and
Bros.
&
Hutzler)
Bonds
Utah Power & Light Co.,
Debentures
Salomon
(Bids
$20,000,000
EDT)
noon
(Wednesday)
both of New York.
$15,000,000
177,500 shares
(Bids noon EDT)
Industrial Hardware Mfg. Co., Inc.
Sulzberger
Blauner
&
Co.;
&
Baruch
Inc.)
Co.
Brothers
$1,500,000
shares
of
&
Co.,
debentures
stock
Inc.
and
(Tuesday)
September 20
Common
Debentures &
(Hallowell
Weill,
and
(Bids
-
EDT)
Rheem
(Monday)
(Bids
Manufacturing Co
(Blyth
&
a.m.
$22,000,000
(Garrett Brothers,
(Wednesday)
September 21
$25,000,000
Trans-National Uranium & Oil Corp
Common
Columbia
Gas
Inc.) $3,000,000
to
be
..Debentures
Inc.
System,
(Bids
$40,000,000
invited)
•
August 16
American
(Offering
Enka
to
Common
Inc.)
Harriman
by
Ripley
(Bids
(Wednesday)
.
(Bids
,
CDT)
noon
850,000
Common
(Offering to stockholders—no underwriting) $48,688,100
of
debentures
October 4
August 19
Securities
October 5
Debentures
stockholders—underwritten
to
EDT)
$35,000,000
(Friday)
Mississippi Valley Gas Co
(Offering
a.m.
Corp.)
by
Preferred
Pacific Power & Light Co
(Expected by local dealers) $3,000,000
August 22
Great
Western
Brothers)
500,000
shares
Splendora
Film
(J. H. Lederer Co.,
to
Bonds
invited)
be
October
Common
Corp
Inc. and
Bonds
(Bids to be invited) $8,500,000
!
$19,500,000
19
(Wednesday)
McGrath Securities Corp.) $600,000
Bonds
New York State Electric & Gas Corp
August 23
California
Electric
(Bids
Power
noon
EDT)
(Bids
(Tuesday)
Common
Co
Pacific Telephone & Telegraph Co
(Bids
Talcott
to
be
invited)
Eberstadt
&
Inc.)
100,000
shares
$25,000,000
invited)
Common
stockholders—bids
Debentures
11
a.m.
EDT)
Office—2054 University
1,004,870 shares
October 25 ( Tuesday)
Service Corp.
Colo.
April 22 (letter of notification) 600,000 shares of com¬
mon stock
(par 10 cents). Price — 50 cents per share.
Proceeds—For mining expenses.
Office—235 Ivy St.*
Denver, Colo. Underwriter—L. A. Huey Co., same city.
GAD Enterprises, Inc., Alexandria, Va.
March 15 (letter of notification) 260,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Pro¬
ceeds—For purchase of factory and working capital.
Office—1710 Mount Vernon Avenue, Alexandria, Va.
Underwriter—T. J. O'Connor and Associates, Washing¬
i-Preferred
Arkansas Power & Light Co
„
(Eids to
be invited)
$8,000,000
Avenue, Berkeley*
Calif., c/o Ray B. Wiser, President. Underwriter—Any
underwriting agreement will be made on behalf of thia
by Uni-Insurance
ton* D. C.
Common
Co.
be
Co.
to
$67,000,000
(James), Inc
(F.
Rrnithpm
(Offering
230,000 shares
to
$10).
Fremont Uranium Corp., Denver,
(Tuesday)
County Electric Co
Worcester
St. Louis-San Francisco Ry
(Bids
October 18
Common
Insurance Co., Berkeley, Calif.
1,000,000 shares of common stock (par
Price—$22 per share. Proceeds—For capital and surplus*
Business—All insurance coverages, except, life, title and
company
(Monday)
Corp.
(Lehman
June 6 filed
mortgage.
(Wednesday)
Equitable
$2,000,000
it Fox (Peter) Brewing Co., Chicago, III.
July 26 (letter of notification) 15,000 shares of common
stock (par $1.25) to be offered for subscription by stock¬
holders of Fox Head Brewing Co. on the basis of one
Peter Fox share for each four Fox Head shares held*
Office—2626 West Monroe St., Chicago, 111.
Freedom
Debentures
Public Service Electric & Gas Co
11
May 6 (letter of notification) $260,000 of 4% first mort¬
gage bonds, series A, due May 1, 1975.
Price—At par
(in denominations of $1,000 each). Proceeds—To retire
existing debt, acquire Northwestern Bell properties in
Leighton, la., and for conversion of both exchanges to
dial operation.
Underwriter — Wachob-Bender Corp.,
Omaha, Neb.
(Tuesday)
and
stock
(Bids
-
(Saturday)
$200,000,000
$8,500,000
shares
$10,000,000
Co.
..Debentures
Northwest Nitro-Chemicals, Ltd.-Debs. & Common
(Eastman, Dillon & Co.)
EDT)
Mountain States Telephone & Telegraph
$4,350,000
(Morgan Stanley & Co.)
noon
October 1
Chicago, Burlington & Quincy RR._Equip. Tr. Ctfs.
General Motors Acceptance Corp
Bonds
Pacific Power & Light Co
&
223,530 shares
August 17
'
September 27 (Tuesday)
Corp
Co.
1
(Tuesday)
stockholders—underwritten
Telephone Co., Pella, la.
Fowler
Debentures
Inc.)
Co.,
11
Ray" infra-red space heater. Office — Pittsburgh, Pa*
Underwriter—Barrett Herrick & Co., Inc., New York.
$6,000,000
EDT)
a.m.
50,000 shares of five selling stockholders. Price—$3 per
share. Proceeds—For working capital; for exploitation
of "Totosave" system; and for marketing of "Tropic-
Bonds
11
Ohio Power Co
August 15
Pitt
Preferred
Ohio Power Co
300,000
.
Packaging International, Inc.
June 30 filed 300,000 shares of common stock (par 10tf),
of which 250,000 shares of for account of company and
Fort
Common
Utah Power & Light Co
August 10
41/2% cumulative preferred
at the offer¬
in exchange,
par for par, for the outstanding 50,000 shares of Philadel¬
phia Dairy Products Co., Inc. first preferred stock. Offer
expected to run from Aug. 9 to Aug. 30. Price—105% of
principal amount. Proceeds—To redeem preferred stocks.
Underwriters—Allen & Co. and Salomon Bros. & Hutzler,
stock, sinking fund series of 1955 (par $50)
ing price; and $5,000,000 are to be offered
(Tuesday)
September 13
736,856 shares
4Mt% cumulative preferred stock, sink¬
ing fund series (par $50) and
Hilo Electric Light Co., Ltd
Common
(Offering to stockholders—no underwriting) 25,000 shares
Housatonic Public Service Corp
Common
(Offering to stockholders—no underwriting)
$325,974
.Common
(Offering to stockholders—no underwriting) $918,000
Natural
(Monday)
September 5
$1,298,500
Morris Plan Co. of California
(Allen
Common
.
Shaiman & Co.) $1,250,000
(General Investing Corp. and
(8/9)
Inc.
July 21 filed $20,000,000 of 4%% subordinated debeivtures due Jan. 1, 1981, of which $15,000,000 are to be
offered first to holders of the outstanding $4.50 preferred
Rauscher, Pierce & Co.) 200,000 shares
(Van Alstyne,
Foremost
(Thursday)
Uranium, Inc
Colohoma
Livingston Oil Co
American
$6,000,000
(Bids noon EDT)
Lynch,
(Monday)
Kirby Oil & Gas Co
Co.
Merrill
shares
September 1
August 8
(Allen &
by
638,532
Underwriters — Coombs & Co. of
Shelton Sanders Invest¬
Ogden, Inc., Odgen, Utah; and
ments, Albuquerque, N. M.
Bonds
California Electric Power Co.__-—_
Common
stockholders—underwritten
Pierce,
Albuquerque, N. M.
(Tuesday)
August 30
Industries, Inc
(Offering
CALENDAR
ISSUE
-■'
-
,
J
Cnn tinned
on
DaOC
Underwriters—Hunter
Continued, from page 33
Garrett
General Homes, Inc.
(par $1).
Price—$5 per share. Proceeds—For plant expansion, new
equipment, inventory and working capital.
Office—
Huntington Station, L. L, N. Y. Underwriter—S. D. Ful¬
ler & Co., New York.
General Minerals Corp., Dallas, Texas
July 21 filed 1,850,000 shares of common stock (par $1).
Price—To be supplied by amendment (may be around
share). Proceeds—To purchase the production
payments to which the company's oil properties are now
subject; to pay an obligation of S. Y. Guthrie, President;
and for acquisition of additional uranium properties and
exploration, development and mining of its present
properties. Underwriters — Sanders & Newsom and
Rauscher, Pierce & Co., both of Dallas, Tex.; and Laird
& Co., Wilmington, Del.
per
General
June
30
Waterworks
(letter of
preferred
Corp.
notification)
cumulative
stock.
3,000
Price
—
shares
At par
of
5%
($100 per
share). Proceeds—To retire bank loans. Underwriters—
Southern
Securities Corp.,
Inc.,
ford,
LanSecurity &
Hill, Crawford &
and
both of Little Rock,
Lexington, Ky.
Bond Co.,
&
Securities
Corp., New York; and
Offering—Not expected in
Co., Dallas, Tex.
immediate future.
Dec. 15 filed 300,000 shares of common stock
$2
cial and Financial Chronicle...
The
(498)
54
Ark.;
and
Inca Uranium Corp., Salt Lake City, Utah
April 25 (letter of notification) 15,000,000 shares of
capital stock. Price—At par (one cent per share). Pro¬
ceeds—For mining expenses. Office—1946 S. Main St.,
Salt Lake City, Utah. Underwriter — Guss & Mednick
Co., Salt Lake City, and Moab, Utah.
•
Industrial
Corp., Aurora, Colo.
July 18 (letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds—For expenses incident to mining. Office—701
Moline St., Aurora, Colo. Underwriter—Robert J. Connell, Inc., Denver, Colo.
it Golden Rule Oil Corp., Albany, Ga.
July 28 (letter of notification) 2,500 snares of class B
5% preferred stock.
Price—At par ($100 per share).
Proceeds
For mining
expenses.
Office — 1801 Pine
Needle Lane, Albany, Ga.
Underwriter—None.
Mfg. Co.
(8/10/11)
Inland Oil &
Uranium Corp.,
Denver, Colo.
(letter of notification) 1,200,000 shares of com¬
stock (par 10 cents).
Price — 25 cents per share.
July 18
mon
Goodyear Tire & Rubber Co., Akron, Ohio
filed 913,531 shares of common stock (par $5)
being offered for subscription by stockholders of record
July 21 on the basis of one new share for each 10 shares
held; rights to expire on Aug. 8. Price—$50 per share.
Proceeds—For expansion and working capital.
Under¬
writer—Dillon, Read & Co., Inc., New York.
Great Eastern Mutual
Insurance Co.
Life
June 23
(letter of notification) 45,583 shares of common
stock (par $1) to be offered for subscription by stockholders of record Jujne 10 in the ratio of one new share
for each three shares
held; stock not subscribed for by
Sept. 10, 1955 will be offered to public. Price—To stock¬
holders, $3 per share; and to public, $5 per share. Pro¬
ceeds—To increase capital and surplus accounts. Office—
210
Boston
Bldg., Denver,
Underwriter—None.
Colo.
★ Great Western Corp., Los Angeles, Calif. (8/22)
Aug. 1 filed 500,000 shares of capital stock (par $1).
Price—To be supplied by amendment. Proceeds-^To re¬
tire $10,473,628 bank loan, for stock acquisitions and for
general corporate purposes.
Business—A holding cor¬
poration. Underwriter—Lehman Brothers, New York.
Great Yellowstone
June 29
Uranium
Co.
1,200,000 shares of
(letter of notification)
com¬
stock
(par 10 cents).
Price—25 cents per share.
mining operations. Office—139 N. Vir¬
ginia St., Reno, Nev. Underwriters—Cromer Brokerage
mon
Co. and Walter Sondrup &
Utah.
Co., both of Salt Lake City,
Hardy-Griffin Engineering Corp., Houston, Texas
July 8 (letter of notification) 240,000 shares of common
stock (par one cent). Price—$1.25 per share. Proceeds—
For purchase of machinery and equipment and working
capital. Underwriter—Benjamin & Co., Houston, Texas.
Hawk Lake Uranium Corp.
April 12 filed 200,000 shares of common stock (par 10
cents). Price—$1.50 per share. Proceeds — For mining
expenses, etc.
Underwriter—Dobbs & Co., New York
City, will act as agents.
Hedges Diesel, Inc.
July 25 (letter of notification)
stock
common
and
stock. Price—At par
10,838
($10
5,419 shares of class A
shares of class B common
per
share). Proceeds—For
ex¬
pansion, equipment and working capital. Underwriter—
Butcher & Sherrerd, Philadelphia, Pa.
+ Hilo Electric Light Co., Ltd., Hilo, Hawaii (9/5)
Aug. 1 filed 25,000 shares of common stock to be offered
for subscription by stockholders of record Sept. 5 on the
basis of
one new
share for each five
shares; unsubscribed
shares to be first offered to employees at rate of five
shares for each full year of employment; then to general
public. Price — To stockholders and employees, at par
($20
share); and to public, at prevailing market price
per share on July 22, 1955).
Proceeds — For
expansion and improvement. Underwriter—None.
per
($25,871/2
Home-Stake Production Co., Tulsa, Okla.
May 12 filed 60,000 shares of capital stock (par $5) and
1,000
debentures
(par $100)
to
be
offered
for
sale
in
units of 60 shares of stock and one $100
debenture, or
multiples thereof. Price—$400 per unit. Proceeds—For
working capital. Underwriter—None. O. Strother. Simp¬
son, of Tulsa, Okla., is President.
Horton Aircraft Corp., Las
Vegas, Nev.
April 26 filed 500,000 shares of common stock (no par),
of which 400,000 shares are to be offered for account of
company
and
100,000 shares for account of William E.
Horton, President.
Price—$1
per
share.
Proceeds—For
construction of model of "Horton
Wingless Aircraft"
end expenses incident thereto. Underwriter—None.
•
Aug. 5; rights to expire Aug. 22. Price—To be
supplied by amendment. Proceeds — To pay purchase
money notes issued in connection with property acquisi¬
tions; to pay bank loans; and to exercise an option to
purchase the Lake plant property. Business—Production
and sale of concrete aggregates, concrete blocks and
ready-mix concretes.
Underwriter — Merrill Lynch
Pierce, Fenner & Beane, New York.
Medical Abstracts, Inc., Philadelphia, Pa.
15 (letter of notification) 300,000 shares of
June
com¬
stock (par one
cent). Price—$1 per share. Proceeds
capital, etc. Office—825 Western Savings
Fund Bldg., Philadelphia, Pa.
Underwriter — Carl J.
Bliedung, Washington, D. C.
mon
—For working
Mehadrin Plantations, Inc., New York
April 28 filed 70,000 shares of common stock (par $10>;
Price—$10.75 per share. Proceeds—For acquisition of
eral corporate purposes.
•
Interstate
345,534 shares of common stock
and working capital and other gen-*
Business—Production and sale
groves
of citrus fruits in State of Israel; also plans to grow sub¬
Underwriter—None.
tropical fruits.
Adjusteze Corp.
1
(par $1)
to be offered for subscription by common stockholders
of Interstate Engineering Corp of record Juiy 20 on a
share-for-share basis; rights to expire oh Aug. 5.
Price
—$2 per share.
Proceeds—For machinery and equip¬
ment; and for working capital.
Office—Anaheim, Calif.
Underwriters—Dempsey-Tegeler & Co., St. Louis, Mo.;
Cruttenden & Co., Chicago, 111.; and Fairman & Co., Los
Merritt-Chapman & Scott Corp., New York
June 28 filed
314,718 shares of common stock (par
$12.50) being offered in exchange as follows: 102,250
shares to class A stockholders of Devoe & Raynolds &
Angeles, Calif.
basis;
filed
Amiesite
Interstate
Corp.
19 filed $438,200 of 5J/2% convertible debentures
1965, to be offered first for subscription by stock¬
holders at the rate of $20 of debentures for each 16
July
due
shares
supplied by amendment.
For working capital. Business — Bituminous
held.
Proceeds
—
Price
—
To
be
paving materials. Office—Delaware Trust Bldg.,
Wilmington 99, Del. Underwriter—None.
concrete
ic lola Uranium Corp.
July 26 (letter of notification) 1,200,000 shares of com¬
mon
stock (par one.cent).
Price—25 cents per share.
Proceeds—For
Office—1414 So. Michigan
Underwriter—Columbia Secu¬
mining costs.
Chicago 5, 111.
rities Co., Denver, Colo.
Avenue,
Israel
/
Kachina
Plantations,
Uranium
Corp., Reno, Nev.
May 12 (letter of notification) 600,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Office—206 N. Virginia St., Reno,
■
Nev.
Underwriter—Whitney, Cranmer & Schulder, Inc.,
Denver, Colo.
,
Kirby Oil & Gas Co. (8/8-12)
July 8 filed 200,000 shares of common stock (par $1),
of which 100,000 shares are for the account of the com¬
pany and 100,000 shares for the account of the Murchison-Richardson
financial
•
Co., Inc.
on
interests
of
Texas.
Price—To
supplied by amendment.
Proceeds—To retire out¬
standing bank loans and for exploration of oil and gas
Underwriters—Allen & Co., New York; and Rau¬
scher, Pierce & Co., Dallas, Texas.
Knapp Uranium & Development Co.
21 (letter of notification) 20,000,000 shares of
common stock. Price—At par (one cent per share). Pro¬
ceeds—For mining expenses.
Office—2174 S. Main St.,
Salt Lake City, Utah. Underwriter — Guss & Mednick
April
Co.,
same
Newcastle, Wyo. Underwriter — Mid-American Securi¬
ties, Inc. of Utah, Salt Lake City, Utah.
and
Accident
Insurance
Co.
of
Alabama
June 2 filed 750,000 shares of class B
(non-voting) com¬
share. Proceeds—To
Office—Gadsden, Ala. Un¬
derwriter
None, sales to be handled by Burlus Ran¬
dolph Winstead, Secretary and Treasurer of the com¬
mon
stock
(par $1).
Price—$3
—
to
common
on
a
iy2-for-l
basis; and 548 shares of class B common stockholders of
The Osgood Co. on a l-for-iy2 basis. Offer will expire
on Sept. 30.
Underwriter—None.
Midwestern
United
Life
Insurance Co.
May 25 filed 75,000 shares of common stock to be of¬
fered for subscription by stockholders of record June 1
on
a
l-for-4 basis.
Price—$2 per share.
Proceeds—
For capital and surplus.
Office—229 West Berry St.,
Fort
Underwriter—None. Statement effec¬
Wayne, Ind.
^ Mineral County Uranium, Inc.
July 27 (letter of notification) 1,200,000 shares of com¬
mon
stock.
Price—At par (25 cents per share).
Pro¬
ceeds—For
expenses.
Office—15 East 1st Street,
Underwriter—None.
*
mining
Reno, Nev.
it Mississippi Valley Gas Co. (8/19) *
Juiy 28 filed $2,000,000 of convertible subordinate de¬
bentures
due
Livingston Oil Co., Tulsa, Okla. (8/8-11)
June 16 filed 742,000 shares of common stock (par 10
cents). Price—$2.75 per share. Proceeds—For purchase
of properties and working capital. Underwriter — Van
Alstyne, Noel & Co., New York.
Lone Star Uranium & Drilling Co., Inc.
April 7 (letter of notification) 570,000 shares of commoo
stock (par 10 cents). Price—50 cents per share.
Pro¬
ceeds—For mining expenses. Office-^1100 Fidelity Union
Bldg., Dallas, Tex. Underwriter
Nichols Co., Las Vegas, Nev.
—
Christopulos-
+ Mackey Airlines, Inc., Ft. Lauderdale, Fla.
July 29 filed 333,334 shares of common stock (par 33V3
cents), part of which are tc be offered for subscription
by common stockholders and part to Joseph C. Mackey,
President of company. Price—To be supplied by amend¬
ment.
Proceeds
For purchase of equipment and for
—
Underwriters—Atwill & Co.,
Fla., and Emerson Cook Co., Palm Beach,
general corporate purposes.
1975,
offered for subscription by
Aug. 18, 1955, on the
be
to
stockholders
common
record
of
for each 25 shares held;
Price — 100% of principal
$1,500,000 of outstanding
414% bonds due 1974 and prepay $457,000 of 414% notes
due to 1956.
Office—Jackson, Mich.
Underwriter —
basis
of
$100
of
rights to expire
debentures
on
Sept. 8.
Proceeds—To
amount.
retire
Equitable Securities Corp., Nashville, Tenn.
Mitchell Mining Co.,
Inc., Mount Vernon, Wash.
May 13 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Address—P. O. Box 301, Mount
Vernon, Wash. Underwriter—Standard Securities Corp.,
Spokane, Wash.
Carlo
Monte
mining
Lake
Salt
expenses.
City,
Inc.
6,000,000 shares of com¬
Pro¬
706 Newhouse
(five cents per share).
Price—At par
stock.
mon
Uranium Mines,
(letter of notification)
6
June
Office
—
Utah. Underwriter—Mid-Con¬
city.
tinent Securities, Inc., same
Morning Sun Uranium,
June
14
Inc., Spokane, Wash..
700,000 shares of com¬
Price — 25 cents per share.
(letter of notification)
stock
mon
(par 10 cents).
mining expenses.
Proceeds—For
Bldg., Spokane, Wash.
same city.
Office — 415 Paulsen
Underwriter—Pennaluna & Co.,
Mortgage Associates, Inc., Philadelphia, Pa.
7 (letter of notification) 20,000 shares of 60-cent
June
preferred stock (par $5) and 20,000 shares
(par 10 cents). Price—For preferred,
convertible
of
stock
common
$10
pany.
Life
shares
53,324
stockholders of Marion Power Shovel Co.
per
increase capital and surplus.
Miami Beach,
of New York Shipbuilding Corp. on a
Bldg.,
(letter of notification)
6,000,000 shares of capital
stock. Price—At par (five cents per share). Proceeds—
For mining expenses.
Office — 124V2 South Main St.,
Life
common
lyj-for-l basis; 127,623 shares to common stockhold¬
ceeds—For
city.
Leborn Oil & Uranium Co.
June 8
shares for each Devoe share;
stockholders of Devoe
1%
share-for-share
stockholders of Ten¬
nessee Products & Chemical Corp. on a lYi-for-1
basis;
13,453 shares to common stockholders of Newport Steel
Corp. on a l-for-2.1 basis; 10,899 shares to common
ers
be
leases.
basis of
on
6,621 shares to class B
tive.
Ltd.
Feb. 28 filed 24,900 shares of ordinary common stock
(par one Israeli pound). Price—$10 per share. Proceedi
—For capital expenditures. Underwriter—'None. Offices
—Natanya, Israel, and New York, N. Y.
Pecan
Houston Gulf Sulphur Co.
Fla.
April 25 filed 500,000 shares of common stock (par one
Managed Funds, Inc., St. Louis, Mo.
cent). Price—$1.20 per share. Proceeds—For explora¬
Aug. .1 filed (by amendment) an additional 3,500,000
tion for sulphur and related activities. Name
shares of common stock (par one cent). Price—At mar¬
Changed-^—
Formerly Humble Sulphur Co. Office — Houston, Tex. ket. Proceeds—For investment.
about
additional
incident to oil and gas activities.
Ave., Denver, Colo. Underwriter
—Shaiman & Co., Denver, Colo.
•
Proceeds—For
(8/5)
Industries, Inc., Miami, Fla.
Office—3975 East 58th
—
June 28
Maule
July 15 filed 638,532 shares of common stock (par $1),
to be offered for subscription by common stockholders
at the rate of one new share for each 2y> shares held
Proceeds—For expenses
June 23
Gibralter Uranium
Hardware
(amendment) $1,500,000 of 5% debentures due
1975 and 300,000 shares of common stock (par 50 cents),
of which 85,000 shares are to be sold to Seymour and
Bernard Offerman at $5 per share. Price—To be sup¬
plied by amendment. Proceeds—To purchase Hugh H.
Eby Co. and Wirt Co. Underwriters—Hallowell, Sulz¬
berger & Co., Philadelphia; and Baruch Brothers & Co.,
Inc., Weill, Blauner & Co., Inc., both of New York.
May 12
•
Thursday, August 4, 1955
per
share; and for common, $2.50 per share. Proceeds
acquisitions. Underwriters
—For construction loans and
—Rambo, Close & Kerner Inc., Philadelphia, Pa.; and
J. S. Hope & Co., Scranton, Pa.
Murdock Acceptance
Corp., Memphis, Tenn.
July 15 (letter of notification) 26,000 shares of common
stock (par $5). Price—$11.50 per share. Proceeds — For
working capital. Office — 400 Union Ave., Memphis,
Tenn. Underwriters—Equitable Securities Corp., Nash¬
ville,
Tenn.;
and
Bullington-Schas
&
Co.,
Memphis,
Tenn.
•
it Mutual Distributors, Inc., Kansas City, Mo.
July 29 filed $1,000,000 of Periodic Purchase Plan Ac¬
counts for Accumulation of Shares of Beneficial Interest
of Mutual
Trust.
National
Credit Corp., Phoenix, Ariz.
,
.
May 6 filed 300,000 shares of common stock (par $1).
Price—$3 per share.
Proceeds—For working capital.
Underwriter—None.
,
Navajo Cliffs Uranium Corp., Provo, Utah
July 6 (letter of notification) 6.000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For mining expenses. Office—156 No. University
Ave., Provo. Utah. Underwriter
Salt Lake City, Utah.
—
Lindquist Securities,
Number 5452
Volume 182
...
The Commercial and Financial Chronicle
if Neva-U-Tex Uranium, lnc.f Goldfield, Nev.
July* 15- (letter<of notification >- 4,000,000 shares of
ital stock.
Price—Five
cents
per
•
share/" Proceeds—For
'
City, Utah.
Nortfcport Water Works Co.
June 23
(letter of notification) 4,438 shares of common
stock (no par) being offered for
subscription by stock¬
holders of record July 21 on the basis of one share for
each 3% shares held
(with an oversubscription privi¬
lege); rights" to expire on Aug. 19.
Price—$30 per
share.
Proceeds—To
bank
repay
loans
and
accounts
payable and for new construction. Office—50 Church
Street, New York, N. Y.
Underwriter—None.
•
Office—Houston. Tex.
general corporate
cap- *
mining expenses, etc. Office—312 East Crook St., Goldfield, Nev/-Underwriter ^ Utah Uranium Brokers, Salt
Lake
(499)
4
purposes.
derwriter—None,
Un¬
Statement effective July 14.
Nitro-Chemicals, Ltd.
(8/17)
$8,500,000 of 10-year subordinate income
debentures, series A and B, due 1965, and 850,000 shares
of common stock (par one cent) to be offered in units
of $5Q of debentures and five shares of stock. Price—To
filed
be supplied by amendment.
construct
capital
other
and
Alberta, Canada.
New
Proceeds—To buy land-land
synthetic fertilizer plant;
a
and
for working
corporate purposes.
Office—Calgary,
Underwriters—Eastman, Dillon & Co.,
York.
Powder River Pipeline, Inc., Billings, Mont. May 31 (letter of notification) $300,000 of 5V2% 10-year
debentures.
Price—At par (in denominations of $1,000
each). Proceeds—For expenses incident to oil and gas
activities. Underwriter—The First Trust Co. of Lincoln,
Neb. Office—Fratt Bldg., Billings, Mont.
Savoy Oil Co., Inc., Tulsa, Okla.
July 8 (letter of notification) 20,000 shares of common
stock (par 25 cents) to be offered for subscription by
Prospect Hill Golf & Country Club, Inc.
July 8 (letter of notification) 11,900 shares of preferred
stock.
Price—At par ($25 per share).
Proceeds—For
swimming pool, club furhishings and equipment, golf
course and organization and develoment expense.
Office
writer—None.
—Bowie, Md. Underwriter—L. L. Hubble
Baltimore, Md.
& Co., Inc.,
Oasis Uranium & Oil
Corp., Fort Worth, Texas
265,000 shares of common
stock (par 50 cents).
Price—$1 per share. Proceeds—
For uranium and oil exploration. Office—Fortune Arms
Bldg., Fort Worth, Tex. Underwriter—Standard Securi¬
ties, Inc., Salt Lake City, Utah.
Old
Republic Insurance Co.
filed 100,000 shares of common stock (par $5)
being offered for subscription by stockholders of record
June
10
June
30
the
on
basis of
held; rights to expire
one
on
share
new
Aug. 8.
for
each
share
per
share.
Price—$21
Proceeds—To
diversify .and increase its premium vol¬
Office—Greensburg, Pa. Underwriter—The First
ume.
Boston
Corn.. New York.
Orange Hotel, Inc., Dallas, Texas
July 19 filed $450,000 of registered 4% sinking fund
debentures du$~May 1, 1985, which/are to be offered
in exchange for $375,000 principal'amount of
registered
4%
Pyramid Electric Co.
May 3 filed 50,000 shares of common
Price—To be supplied by amendment.
selling stockholders. Underwriter
—
debentures
and
3.750
shares
of
$20
stock
par
of
Inc., Montrose, Colo.
July 19 (letter of notification) 625,000 shares of common
stock (par one cent).
Price—32 cents per share. Pro¬
ceeds
For expenses incident to mining operations.
Office—Bryant Bldg., Montrose, Colo.
Underwriters—
General Investing Corp., New York, N. Y., and Shaiman
&
Co., Denver, Colo.
Rampart Uranium Co., Colorado Springs, Colo.
July 19 (letter of notification) 2,475,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For expenses incident to mining operations. Office—
Mining Exchange Bldg., Colorado Springs, Colo. Under¬
writer—A1 J. Johnson & Co., same address.
Rebel Oil & Uranium Co., Denver, Colo.
May 27 (letter of notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For mining
operations.
Office—636 South
Broadway, Denver, Colo.
Co., Inc., same city.
Revere
Underwriter—Lester Gould &
Inc., Cincinnati, Ohio
$1,000,000 of 5%% cumulative convertible
debentures due Jan. 1, 1980 and 25,000 shares of common
stock (no par). Price—Par for debentures and $100 per
,
Realty,
March 8 filed
share for stock.
—
To purchase real estate or
Underwriter—Stanley Cooper Co., Inc.,
Proceeds
stock of. the
Cincinnati, O.
Community company. Underwriter—None.
if Pacific Telephone & Telegraph Co. (8/23)
July 29 filed $67,000,000 of 36-year debentures due Aug.
15, 1991. Proceeds—To reduce bank loans. Underwriter
if Rheem Manufacturing Co. (8/15/19)
Aug. 2 filed $25,000,000 of 20-year sinking fund deben¬
—To
ment.
determined
by
competitive
bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley &
Co.; White, Weld & Co., Lehman Brothers and Union
Securities Corp. (jointly).
Bids—Tentatively expected
be received
on
Aug. 23.
7
-
■
tures due Aug.
1, 1975. Price—To be supplied by amend¬
Proceeds—To
retire
an
outstanding loan of ap¬
proximately $14,000,000 and for general corporate pur¬
poses.
Underwriter—Blyth & Co., Inc., San Francisco,
Calif., and New York, N. Y.
Lake City, Utah
July 15 (letter of notification) 6,000,000 shares of cap¬
ital stock (par one cent).
Price—Five cents' per share.
Proceeds—For mining
operations.
Office—530 Judge
Rocket Mining Corp., Salt
*.
if Pacific Telephone & Telegraph Co.
July 29 filed 1,339,196 shares of common stock (par $100)
to be offered for subscription by common stockholders in
ratio of one new share for each six shares held.
American Telephone & Telegraph Co., the
parent, owns
90.89% of Pacific's outstanding stock and intends to sub¬
Bldg., Salt Lake City, Utah. Underwriter—Mid Ameri¬
ca Securities, Inc., of Utah, 26 W. Broadway, Salt Lake
scribe for
if Roundup Oil, Inc. (Montana)
July 21 (letter of notification) 370 shares of common
stock.
Price—At par ($100 per share).
Proceeds—For
the
plied
by
1,199,849 of the
amendment.
shares.
new
Proceeds—To
Price—To be sup¬
repay
bank
loans.
Underwriter—None.
Pacific
June
6
Uranium
Oil
Corp.
3,000,000 shares of
(letter of notification)
stock
mon
&
Proceeds
(par two cents).
—
Price—10 cents per share.
Office — 811 Boston
For mining expenses.
Bldg., Denver* Colo." Underwriter—Amos C.
Co., same city.
Sudler
&
Corp., New York
50,000 shares of common stock (par $25)
and $2,000,000 of five-year 5% notes, series 1955.
Price
—Of stock, $28 per share; and of notes, at 100% of
prin¬
cipal amount. Proceeds — For further development of
Israel industry;
development of urban and suburban
areas; extension of credit; financing- of exports to Israel;
and working
capital and general corporate purposes.
Underwriter—None, sales to be handled through com¬
pany officials and employees.
•
filed
1
Panama
Minerals, Inc., S. A.
(Republic of
Panama)
June 30 filed
400,000 shares of
Office—Denver, Colo.
Pandora
Uranium
stock
(par $1).
Proceeds—For mining
Price—$1.25 per share.
expenses.
common
expenses
incident
to
mining
operations.
Pelican Uranium Corp., Salt Lake City, Utah
May 25 (letter of notification) 300,000 shares of common
stock (par five cents).
Price—10 cents per share. Pro¬
ceeds— For
mining expenses.
Office — 688 East 21st
South, Salt Lake City, Utah.
Underwriter — TransWestern Brokerage Co., New Orleans,
La., and Salt
Lake City, Utah.
(letter of notification) 640,000 shares of
common
stock.
Price—At par (10 cents per share).
Proceeds—
mining costs.
Office—613 Simms Building, Albu¬
querque,
NT.
Mex.
Underwriter — Western
Securities
Corp., Salt Lake City, Utah.
For
Pioneer Mortgage & Development Corp.
April 27 filed 300,000 shares of common stock (par $1)
with warrants attached
"as
entitling the holder to purchase
$13 to $20
the exercise date. Price—$10 per share
additional share at prices ranging from
depending
a
upon
216
Main St.,
Royal Register Co., Inc., Nashua, N. H.
July 20 (letter of notification) 25,000 shares of class A
common stock (par $1).
Price—$10 per share. Proceeds
ment
ital.
purchase of materials and supplies; capital equip¬
and reduction of note debt; and for working cap¬
Office
Lamont &
—
1 Pine St., Nashua, N. H. Underwriter—
Co., Boston, Mass.
Royal Uranium Corp.
May 26 (letter of notification) 200,000 shares of common
stock (par five cents).
Price—At market (total not to
exceed $150,000). Proceeds—For working capital. Office
—Walker Bank Bldg., Salt Lake City, Utah. Underwriter
—Whitney & Co., same city.
No general offer planned.
Saint Anne's Oil Production Co.
speculation."
Proceeds—For working capital and
Office—417
Under¬
McBurney Bldg., Tulsa, Okla.
if Sea Products Corp., New Bedford, Mass.
July 28 (letter of notification) 350 shares of common
stock (no par).
Price—$100 per share. Proceeds—For
construction, installation of pilot plant and operating
expenses.
Address—c/o Leonard E. Perry, 222 Union
Street and P. O. Box 668, New Bedford, Mass.
Under¬
Shorn Uranium Corp., Riverton, Wyo.
April 21 (letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds
For mining expenses. Address — Box 489,
(letter of notification) 20,000 shares of common
stock (par $1) to be first offered to stockholders. Price
—$6.25 per share. Proceeds — For oil and mineral and
related activities. Office—Northwood, Iowa. Underwriter
June
Regis
28 filed
Paper Co., New York
329,327 shares of common stock
Wyo.
Riverton,
Underwriter
Denver, Colo.
Melvin F.
—
:
Schroeder,
'
"
>
Shumway Uranium, Inc., Moab, Utah
(letter of notification) 1,200,000 shares of com¬
(par one cent). Price—25 cents per share.
June 20
stock
mon
mining expenses. Office — 6 Kirby St.,
Underwriter—Skyline Securities Inc., Den¬
Proceeds—For
Moab, Utah.
Colo.
ver,
|
Silvaire Aircraft & Uranium Co.
(letter of notification) 3,000,000 shares of com¬
June 17
cent). Price —10 cents per share).
operations. Office—Fort Collins,
Underwriter—Carroll, Kirchner & Jaquith, Inc.,
stock
mon
(par
one
Proceeds—For mining
Colo.
Denver, Colo.
Smith-Dieterich
Corp.
(letter of notification) 8,677 shares of capital
stock
(par $2.50) to be offered for subscription by
stockholders on basis of one new share for each 10 shares
held. Price—$5.50 per share. Proceeds—To obtain addi¬
tional patents; to repay
certain loans; and working
capital. Business—Photographic equipment, Office—50
Church St., New York. Underwriter—None.
July 12
.
Sonoma
Quicksilver Mines, Inc.
April 27 filed 800,000 shares of capital stock (par 10
cents), of which 80,000 shares are to be initially offered
to public. Price—To be fixed on the basis of the market
value at the time of their first sale or $1 per share,
which ever is lower. Purpose — To increase facilities
and invest in other quicksilver properties; and for work¬
ing capital.
Office—San Francisco, Calif. Underwriter
—Norman R. Whittall, Ltd., Vancouver, B. C., Canada.
Southeastern Telephone Co.
July 15 filed 50,000 shares of common stock (par $10).
Price—To be supplied by amendment. Proceeds—To re¬
bank loans and for construction program. Under¬
writer—Scott, Horner & Mason, Inc., Lynchburg, Va.
pay
if Speculators Diversified, Inc., Las Vegas,
Nev.
July 27 (letter of notification) 580,000 shares of common
stock.
Price—50 cents per share.
Proceeds—For pur¬
of
securities
Fremont St.,
223
and
ownership.
property
Las Vegas, Nev.
if Splendora Film
Office—
Underwriter—None.
Corp., New York
(8/22)
July 27 filed 1,200,000 shares of common stock
(par 10
cents). Price—50 cents per share. Proceeds—For equip¬
ment and
accessories; for financing film productions;
and for working capital.
Underwriters—J. H. Lederer
Co.,
Inc.,
and McGrath Securities
Corp., both of New
York.
Stancan
Uranium Corp., Toronto, Canada
April 18 filed 200,000 shares of cumulative convertible
preferred stock, series A (par one cent). Price—To be
supplied by amendment. Proceeds—For exploration and
development expenses and for general corporate pur¬
Underwriters—Gearhart & Otis, Inc. and F. H.
poses.
Crerie & Co., Inc., both of
•
New York.
Strevell-Paterson Finance Co.
June 16
(letter of notification) 352,000 shares of common
being offered for subscription by
at 70 cents per share on
each ,10 shares held (with
an oversubscription privilege); rights to expire
at noon
on
Aug. 22.
Unsubscribed shares are to be publicly
offered, commencing Sept. 10 at $85 per 100 shares.
Proceeds—For working capital.
Office—76 West Sixth
South St., Salt Lake City, Utah.
Underwriter—Harrison
S. Brothers & Co., same city.
stock
(par
50 cents)
stockholders of record July 26
May 9
(par $5)
being offered in exchange for common stock of General
Container Corp. on basis of 2% shares of St. Regis for
one General share.
Offer, which will expire on Aug. 26,
Regis obtaining 80% of outstand¬
The Cleveland Trust Co., Cleveland,
Ohio, is depository and exchange agent.
Underwriter
is conditioned upon St.
the
basis ot one new share for
Hotel, Inc., Las Vegas, Nev.
filed (as amended)
3,750,000 shares of com¬
mon stock
(par one cent). Price—$2.50 per share. Pro¬
ceeds—To construct hotel and for working capital. Un¬
derwriters—Golden-Dersch & Co., Inc., New York; and
Sun
Feb.
16
Coombs & Co. of Las Vegas, Inc.,
Las Vegas, Nev.
—None.
San Juan
June 23
Uranium Corp.
(letter of notification) 89,850 shares of common
(par one cent), represented by options issued to
underwriters. Price—50 cents per share. Proceeds—To
stock
selling stockholder.
Office
—
Fidelity Bldg., Oklahoma
W. Whitney, Wewoka,
Okla. Underwriter — E.
Okla.; and through company.
City,
Permian Basin Uranium Corp.
one
—
ing General stock.
City, Utah.
June 2
corporate purposes.
Office
Roundup, Mont.
Underwriter—None.
St.
Mines, Inc.
Office—530 Main St., Groad Junction, Colo. Underwriter
—Columbia
Securities Co., Denver 2,
Colo, and Salt
Lake
ties.
chase
—None.
Underwriter—None.
July 14 (letter of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For
Utah.
—For
Palestine Economic
July
City,
general
com¬
Proceeds—-
exploration, development and acquisition of proper¬
—
Radium Hill Uranium,
Interest therein.
to
For
basis; rights
writer—None.
stock (par $1).
Proceeds — To
S. D. Fuller & Co.,
New York.
Orange Community Hotel Co. in the ratio of $120 of new
debentures for each $100 of debentures and 20 shares of
be
stockholders of record July 29 on a l-for-13
to expire on Aug. 15. Price—$7 per share.
—
June 8 (letter of notification)
Underwriter—Co¬
Bldg., Colorado Springs, Colo.
lumbia Securities Co., Denver, Colo.
Northwest
July 21
dence
35
I Sanitary Products Corp., Chicago, III.
(letter of notification) 15,000 shares of common
stock (par $1).
Price—At market (estimated at $1.62Vz
to
$2 per share).
Proceeds—To selling stockholder.
Office—10 So. LaSalle St., Chicago, 111.
Underwriter—
Cruttenden & Co., Chicago, 111.
June 27
Santa
Fe
Uranium &
Oil Co.,
Inc.
May 26 (letter of notification) 2,959,500 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For mining operations. Office—416 Indepen¬
if Talcott (James), Inc. (8/23)
Aug. 2 filed 100,000 shares of common stock (par $9).
Price—To be supplied b,y amendment.
Proceeds—For
working capital.
Underwriter—F. Eberstadt & Co., Inc.,
New
York.
Tasha Oil & Uranium Co., Denver,
Colo.
(letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining operations. Office—1890 S. Pearl
May 11
St., Denver, Colo. Underwriter
Jaquith, Inc., same city,
Teenager Cosmetics,
—
Carroll, Kirchner &
Inc., Las Vegas, Nev.
July 18 (letter of notification) 287,000 shares of common
stock. Price—At par ($1 per share) in units of 100 shares
each.
Proceeds—For
current
liabilities, overhead, and
operational expense, advertising,
research, development
Continued
on
vaae
36
The Commercial and Financial Chronicle...
Thursday, August 4, 1955
(500)
86
City, Utah. Underwriter
Seattle, Wash.
Continued from page 35
manufacturing. Office—221 West Charleston Blvd.,
Vegas, Nev. Underwriter—Utah Uranium Brokers,
Vegas, Nev.
and
Las
Las
TelAutograph Corp., Los Angeles, Calif.
July 1 filed $2,396,500 of 4%% convertible
debentures due July 15, 1965, being offered
subordinated
for subscrip¬
tion by common stockholders of record July 27, 1955 on
the basis of $500 of debentures for each 50 shares of
stock held; rights to expire on Aug. 15.
Price—At par
(in denominations of $500 and $1,000 each). Proceeds—
To retire
outstanding loans from Commercial Credit
Corp.; to purchase additfonal stock of Nuclear Consult¬
ants, Inc.; for expansion of present merchandising activi¬
ties; and for general corporate purposes. Underwriter—
None.
Tel-Instrument
Electronics Corp.
of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For acquisitions and working capital. Office—728 Gar¬
den St., Carlstadt, N. J. Underwriter—Batkin & Co., New
(letter of notification) 199,999 shares
June 28
York, N. Y.
Tennessee
Life & Service Insurance Co.
(letter of notification) 9,200 shares of common
June 20
subscription by stock¬
Proceeds—To increase
expansion. Office — 1409
(par $5) to be offered for
Price—$30 per share.
stock
holders.
working capital for agency
Magnolia Ave., Knoxville, Tenn. Underwriter—Jesse
Bowling, 16 M Street, Bedford, Ind.
Eastern Transmission
Texas
C.
July 25 filed 275,908 shares of common stock (par $7)
to be offered in exchange for shares of capital stock
Eastern
of Texas
Corp. in the ratio of one
Production
Transmission stock for each 2.6 shares of
6hare of
duction stock. The offer is contingent upon
Pro¬
the tender of
263,402 shares of Production Company so that
thereafter own 80% or more of Pro¬
at least
Transmission will
duction
capital stock.
Texas Western Oil & Uranium
Co., Denver, Colo.
15
(letter of notification) 5,960,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For mining expenses. Office — 407 Denver
Underwriter—Floyd Kos-
National
ter &
Bldg., Denver, Colo.
Co., same address.
Texboard, Inc., Dallas, Texas
17 filed $1,500,000 of 6% series A debentures due
aerially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,000
of 6% series B convertible debentures due serially from
Feb. 1, 1962 to Aug. 1, 1966. Price—To be supplied by
Proceds—To construct and operate a manu¬
facturing plant near Orange, Tex., for the purpose of
manufacturing insulation building products.
Under¬
writer—None. C. F. McDougal of Dallas, Tex., is Presi¬
dent.
Thunderbird Uranium Corp., Albuquerque,
.
New Mexico
(letter of notification) 3,000,000 shares of common
par (10 cents per share).
Proceeds—
expenses.
Office—915 Simms Bldg., Albu¬
querque, N. M. Underwriter—Hicks, Newton & Co., Inc.,
Denver, Colo.
For
Price—At
mining
Trans-National
Uranium
& Oil
Corp.
(8/15)
filed 2,000,000 shares of common stock (par 20
cents). Price—To be supplied by amendment (expected
July
1
at $1.50 per share).
to
fields.
loan business
—
Colfax Avenue,
Underwriter — Columbia
Denver, Colo.
Colo.
Securities Co., Denver,
Universal Service Corp., Inc.,
Houston, Texas
ment, mining costs, oil and gas development,
corporate purposes. Underwriter—None.
and other
Wallace, Ida.
1,750,000 shares of com¬
Uranium Prince Mining Co.,
April 18 (letter of notification)
stock.
Price
10 cents
—
per
share.
Proceeds—For
Box 709, Wallace, Ida.
Underwriter—Wallace Brokerage Co., same city.
Address
—
Tri-State Natural Gas Co.,
Tucson, Ariz.
July 6 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For expenses incident to oil and gas activities.
Office—
15 Washington St., Tucson, Ariz.
Underwriter—Frank
L. Edenfield & Co., Miami, Fla.
—
USeven
Corp., Stockton, N. J.
June 28 (letter of notification) 1,000,000 shares of com¬
mon
stock (par one cent).
Price—25 cents per share.
Proceeds
For equipment, drilling costs, and working
capital. Business—To explore, develop and operate ura¬
nium mining properties. Address—P. O. Box 99, Stock¬
Underwriter—None.
ton, N. J.
(9/13)
of first mortgage bonds due
repay bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Union Securities Corp. and Smith, Barney & Co.
(jointly); Kidder, Peabody & Co.; Salomon Bros. &
Hutzler; White, Weld & Co. and Stone & Webster Se¬
curities Corp, (jointly); The First Boston Corp.; Lehman
Brothers and Bear, Stearns & Co. (jointly). Bids—To be
received up to noon (EDT) on Sept. 13.
July 26
filed
$15,000,000
Proceeds—To
1985.
(9/13)
July 26 filed 177,500 shares of common stock (no par).
Proceeds—To repay bank loans and for construction pro¬
gram. Underwriter—To be determined by competitive
bidding. Probable bidders: Lehman Brothers; Union Se¬
curities Corp. and Smith, Barney & Co. (jointly); Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly); Blyth & Co., Inc.; The First Boston
Corp.
Bids—To be received up to noon (EDT) on
Sept. 13.
Utah
(letter of notification) 3,000,000 shares of
Price—At
stock.
mining
Vegas, Nev.
city.
par
(10 cents per share). Proceeds—
Office—210 N. Third St., Las
Underwriter—Lester L.
LaFortune, same
mining operations.
Address
—
Churchill County, Nev. Underwriter—H. P. Pratt & Co.,
Seattle, Wash.
Two Jay Uranium Co., Salt Lake City, Utah
May 16 (letter of notification) 3,000,000 shares of
Vactron
Corp.
(letter of notification) 300,000 shares of com¬
Price—At par ($1 per share). Proceeds—To
May 13
mon
stock.
manufacture,
rebulid and market television pic¬
Underwriter — Zone Investments Co.,
process,
tures tubes, etc.
>
Vanura Uranium, Inc.,
mon
Salt Lake City, Utah
(letter of notification) 3,000,000 shares of com¬
stock
Proceeds
cent). Price — 10 cents per share.
For mining expenses. Underwriter — I. J.
(par
—
formerly known
Vas
Uranium
as
Name Change—The company
San Miguel Uranium, Inc.
&
Place,
(par three cents). Price—10 cents per share.
mining expenses.
Office—32 Exchange
Salt Lake City, Utah. Underwriter — Western
States
Investment
rities Inc., Denver,
stock
Proceeds—For
Ucon
Co., Tulsa, Okla.
Uranium Corp.,
Salt Lake City, Utah
June 2 (letter of notification) 5,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For
mining costs. Office—406 Judge Build¬
ing, Salt Lake City, Utah. Underwriter—Empire Secu¬
rities Corp., Las Vegas, Nev.
U-ftan Uranium & Oil Co., Salt Lake City, Utah
May 5 (letter of notification) 260,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For mining expenses. Office — Judge Bldg., Salt Lake
•
Co.,
same
city.
Western Nebraska Oil & Uranium Co.,
Inc.
April 4 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For
exploration and development costs
capital.
Office—924 Broadway, Denver,
working
and
Colo.
State¬
be withdrawn.
Western
Union
Telegraph Co.
shares of common stock (par
$2.50) being offered for subscription by stockholders of
record July 22 on the basis of one new share for each
five shares held; rights to expire on Aug. 8, 1955, Price
—$20 per share. Proceeds — For construction program.
Underwriters
Kuhn, Loeb & Co.; Lehman Brothers;
June
filed
30
1,036,052
—
Clark, Dodge & Co.; and Salomon Bros.
of New York City.
Wet Mountain
& Hutzler, all
Mining, Inc.
(letter of notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds
For mining activities.
Office — 105l/z East
Pikes Peak, Colorado Springs, Colo.
Underwriter —
Hicks, Newton & Co., Inc., Denver, Colo.
—
White
Horse
Uranium, Inc., Salt Lake City, Utah
(letter of notification) 2,900,000 shares of capital
stock
(par 2M> cents). Price—10 cents per share. Pro¬
mining expenses. Office—1030 South Sixth
West St., Salt Lake City, Utah.
Underwriter—J. W.
Hicks & Co., Inc., Denver, Colo.
I
ceeds—For
Uranium Mining Co.
Wicker-Baldwin
May 26 (letter of notification) 900,000 shares of common
stock. Price—At par (25 cents per share). Proceeds—
Office—616 Sixth St., Rapid City,
same city.
For mining expenses.
Underwriter—Driscoll-Hanson, Inc.,
S. D.
Colo.
..
.
Wabash Uranium Corp.,
Moab, Utah
June 10 (letter of notification) 10,000,000 shares of
tal stock. Price—At par (three cents per share).
ceeds—For mining expenses. Underwriter—Moab
kerage Co. and National Securities, Inc., 368 South
St., Salt Lake City, Utah.
Warwick
Hotel Associates,
capi¬
Pro¬
Bro¬
State
New York
of participations in partnership
in Associates in minimum amount of $10,000.
June 22 filed $4,250,000
interest
Proceeds
—r
'Wyoming Uranium Corp., Salt Lake City, Utah
April 22 (letter of notification) 833,333 shares of com¬
mon stock
(par one cent). Price—3V2 cents per share.
Proceeds—For mining expenses. Office—522 Felt Bldg.,
Salt Lake
City, Utah.
Underwriter—James E. Reed &
Co., Salt Lake City, Utah; and Coombs & Co., of Wash¬
ington, D. C.
if Yellow Circle Uranium Co.
July 22 (letter of notification) 5.,000,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds— For
mining
&
Office — 223 Petroleum
City, Utah. Underwriter—Morgan
expenses.
Salt Lake
Co., same city.
Building,
York Oil & Uranium Co.
(letter of notification) 10,000,000 shares of capi¬
Price—At par (two cents per share). Proceeds
June 3
tal stock.
mining and oil activities.
Address—P. O. Box
348, Newcastle, Wyo. Underwriter—Empire Securities
Corp., Salt Lake City, Utah.
—For
Prospective Offerings
Power
&
Light Co.
(10/25)
plans to issue and sell
80,000 shares of cumulative preferred stock (par
Proceeds—To repay bank loans and for new con¬
May 27 it was reported company
about
$100).
struction.
Underwriter—To be determined by competi¬
White,
Blyth
Equitable
Probable bidders: Lehman Brothers;
tive bidding.
Weld & Co.
(jointly);
Bids—Expected to be received on
Oct. 25.
•
Bangor & Aroostook
RR.
Aug. 1, the ICC granted exemption from competitive
bidding of an issue of $4,000,000 40-year income deben¬
tures.
Proceeds—To redeem 38,280 shares of outstand¬
ing $5 cumulative preferred stock,
if Bergstrom Paper Co., Neenah, Wis.
July 26 it was reported company plans to
issue and sell
(non-voting) common stock.
Underwriter—A. G. Becker &
Registration—Expected in near
Co.,
Inc.,
Chicago, 111.
future.
one
Drilling Co., Monticello, Utah
June 20 (letter of notification) 2,000,000 shares of com¬
mon stock. Price—At par (10 cents per share).
Proceeds
—For mining operations.
Underwriter—Skyline Secu¬
mon
plant, machinery and working capital.
Blvd., Houston, Tex.
Underwriter—
Clark &
70,000 shares of Class A
Purpose—For expansion.
Schenin & Co., New York.
was
com¬
Warren
Co., Inc. and Smith, Barney & Co. (jointly);
Securities Corp. and Union Securities Corp.
Inc., Vale, Ore.
July 8 (letter of notification) 10,000,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share.
Proceeds—Expenses incident to mining operations. Of¬
fice—Lytle Building, Vale, Ore." Underwriter—Hansen
Uranium Brokerage, Salt Lake City, Utah.
June 16
share. Proceeds—For
P. O. Box 456, Fallon,
per
of
&
Uranium & Diata,
Utore
capital
expenses.
stock
Price—$1.50
erection
Arkansas
Uranium Co., Las Vegas, Nev.
Southern
Fort Worth, Texas.
(par $1).
For
Industries, Inc., Houston, Texas
23, letter of notification)) 150,000 shares of common
(par 50 cents).
Price—$2 per share.
Proceeds—
—
Tungsten Mountain Mining Co., Fallon, Nev.
June 8 (letter of notification) 149,800 shares of common
.
stock
June 9
For
Triangle Mines, Inc., Salt Lake City, Utah
May 3 (letter of notification) 100,000 shares of common
stock.
Price—At par (50 cents per share).
Proceeds—
For mining operations. Office — 506 Judge Bldg., Salt
Lake City, Utah.
Underwriter — Lewellen-Bybee Co.,
Washington, D. C.
Welch
June
Salt Lake City, Utah
June 30
(letter of notification) 30,000,000 shares of
common
stock (no par).
Price—One cent per share.
Proceeds
For mining activities. Office — 1101 South
State St., Salt Lake City, Utah.
Underwriter—Anderson-Hackett Investment Co., same city.
Office
Inc., Dallas, Tex.
plywood mill of Walton Plywood
Underwriter—Albert Walter Braedt.
Co., Inc., etc.
June 29
June 6
Dallas, Tex.
Washington Plywood Co., Inc., Lowell, Wash. "
13 filed 296 shares of common stock (par $5,000).
Ltd., Virginia City, Nev.
June 13 filed $600,000 of Grubstake Loans to be offered
in amounts of $25 or multiple thereof.
Proceeds—75%
to be invested in U. S. Savings bonds and the balance
for equipment and exploration and development ex¬
penses. Underwriter—None.
Uranium Properties,
Proceeds—To acquire part of prop¬
option in favor of company,
to mining and oil activies.
Underwriter — Garrett Brothers,
Office—Washington, D. C.
Proceeds—To purchase
ment to
July 8 filed 500,000 shares of common stock (par two
mills). Price—$2.50 per share.
Proceeds—For equip¬
mon
Proceeds—For in¬
Price—At market.
stock.
common
vestment.
Office—427 Lovett
if Universal Oil & Uranium Corp.
July 26 (letter of notification) 5,998,000 shares of com¬
mon stock
(par one cent). Price—Five cents per stoare.
Proceeds
For mining operations.
Office — 7900 West
erties presently subject to
and for expenses incident
—
engage^ in mortgage
Underwriter—None.
balance to be used
Utah Power & Light Co.
June 9
stock.
Investment Co., Atlanta, Ga.
United American
related
of
June
July 19 filed 3,500,000 shares of common stock no par.
Price—$2 per share. Proceeds—For organization of two
wholly-owned insurance compaies, to be named United
American Life Insurance Co. and Tourists Indemnity Co.;
and
if Washington Mutual Investors Fund, Inc.
July 28 filed (by amendment) an additional 6,000 shares
Underwriter—Mickle & Co.,
purposes.
Utah Power & Light Co.
Jan.
amendment.
corporate
Houston, Texas.
Uranium Technicians Corp.,
Texas Toy Co., Houston, Texas
July 8 (letter of notification) 300,000 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For payment of accounts payable of operating company;
expansion and working capital. Office—2514 McKinney
Ave., Houston, Texas. Underwriter—Hay Johnson & Co.,
Inc., Houston.
June
other
Under¬
Hotel, Philadelphia, Pa., and related expenses.
writer—None.
if Union of Texas Oil Co., Houston, Texas
July 12 (letter of notification) 61,393 shares of com¬
mon stock (no par).
Price—$1.25 per share. Proceeds—
To reduce bank loans, and for development costs and
mining operations.
Corp.
Northern Securities, Inc.,
—
To pay part of
purchase price of Warwick
Blackhawk
Fire & Casualty
Insurance Co.
April 5 it was j(egpPted company plans to issue and sell
200,000 shares ol common stock. Price—Expected at $5
per share.. Proceeds—To acquire Blackhawk Mutual In¬
surance
Co., Rockford, 111.
Underwriter — Arthur M.
Krensky
Bliss
Co.,
&
(E.
W.)
Inc.,
Chicago, 111.
Co.
April 26 stockholders increased the authorized common
stock (par $1) from 1,000,000 shares to 1,500,000 shares.
Underwriter—Previous financing was handled by Allen
&
•
Co., New York.
Camden Trust Co..
Camden, N. J.
offered to its stockholders of record
July 25 the right to subscribe on or before Aug. 11 for
72,500 additional shares of capital stock (par $5) on the
basis of 1.45 shares for each 10 shares held.
Price—$30
July 29
per
company
share.
Proceeds—To increase capital and
N. J.
Underwriter—Price & Co.,.Inc., Camden,.
surplus.
Number 5452
Volume 182
Cavendish
April
of
Eale
it
19
Uranium
Proceeds—For
The Commercial and Financial Chronicle
Mines
announced
was
issue
debenture
a
...
First National
Corp.
company plans issue and
of several million dollars.
concentrating mill, mining
a
equipment
Underwriter—James
and for underground development.
Anthony Securities Corp., New York.
plans to issue and sell some additional common stock,
par $10 (probably to stockholders) in the latter part of
Proceeds—For construction
Underwriter
—May be determined by competitive bidding. Probable
bidders: The First Boston Corp. and Coffin & Burr, Inc.
(jointly); Harriman Ripley & Co. Inc.; Blyth & Co., Inc.
and Kidder, Peabody & Co. (jointly). Meeting—Stock¬
holders
May
on
stock
11
voted
program.
increase
to
from
3,250,000 to
fering—Probably in September.
common
the
common stockholders of
the right to subscribe on
1
given
25,000 additional
Of-'
3,500,000 shares.
basis of
the
fide
bona
one
new
residents
record
of
July, 27
were
or
York State
(with
over¬
an
subscription privilege).
Price—$22.50 per share.
Pro¬
ceeds—To retire outstanding short-term notes.
Under¬
writers—W. E. Hutton & Co. and
Laird, Bissell & Meeds,
of New York City.
both
Chicago,
to noon
Burlington & Quincy RR.
(8/17)
Inc.; Salomon Bros. & Hutzler; Kidder, Peabody & Co.
Chicago, Milwaukee, St. Paul & Pacific RR.
July 13 stockholders approved the creation of an issue
of $60,000,000 5% income debentures, series A, to be
offered in exchange for 600,000 shares of outstanding
preferred stock, series A, on a par for par basis; offer
to commence Aug.
1 and will run through Aug. 31.
Dealer-Manager — Merrill Lynch, Pierce, Fenner &
Beane, New York.
Columbia Gas System,
was
Inc.
Consolidated Edison Co. of New
announced
York, Inc.
company
expects
to
sell
<rom
$40,000,000 to $50,000,000 bonds some time during
the current year. Proceeds—For construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; The First Boston Corp.
Consolidated Uranium Mines,
Inc.
July 23, 1954, stockholders authorized issuance and sale
of not to exceed $6,000,000 convertible debenture bonds
in connection with the acquisition of Uranium Mines of
America, Inc. stock. Public offering of $2,000,000 bonds
expected early in 1955. Underwriter — Tellier & Co.,
Jersey City, N. J.
13
it
sale in near
future of $2,000,000 convertible debentures. Underwriter
—Van
was
reported
the
plans
company
Alstyne, Noel & Co., New York.
Daitch Crystal Dairies, Inc.
April 28 stockholders approved
authorized
common
stock
a
proposal to increase
$1) from 500,000
(par
shares to 1,000,000 shares to provide for future financing
and expansion. Underwriter—Hirsch & Co., New York.
Denver
was
announced
Detroit Edison Co.
May
about
2
stockholders approved a proposal authorizing
$60,000,000 of convertible debentures. Previous
offer of convertible debentures
ers
was
made to stockhold¬
without underwriting.
Doman
Helicopters, Inc.
Feb. 17 Donald S. B. Waters, President, announced stock¬
holders voted to increase authorized capital stock from
1,000,000 shares to 3,000,000 shares in anticipation of
expansion of the company's activities. .Underwriter—
Previous financing handled by Greene & Co., New York.
Essex
County Electric Co.
July 18 it
was reported company plans to issue and sell
additional first mortgage bonds. Underwriter—To
be determined by competitive bidding. Probable bidders:
some
Halsey, Stuart & Co. Inc.; The First' Boston Corp.;
Kidder, Peabody & Co. and White, Weld & Co. (iointly);
Blair & Co. Incorporated. Offering—Expected this Fall.
the authorized
shares to
Co., Detroit, Mich.
reported that following a probable 10split, an offering of approximately 4,000,00C
was
shares will be made to the public. Price—Expected
around $60 per share.
Proceeds — To the Ford
Foundation.
Offering—Probably not until "latter part
be
of 1955, if then."
tures
due
1975.
provide
Price—To be named later.
additional
of
sales
working
cars
capital
trucks
and
to
Proceeds—
finance
other
and
Reg¬
Gulf States Utilities Co.
May 16 it
$10,000,000
was
reported
company
issue
may
and
sell
first mortgage bonds if market conditions
Underwriter—To be determined by competitive
permit.
stock
to increase
proposal
a
(par $1.25) from
1,000,000
is planned.
are
Underwriter—Probably Blair & Co. Incor¬
porated, New York.
Maine Central RR.
Feb. 14, E. Spencer
filler, President, said company has
not given up the idea of refunding the $17,000,000 5%%
first
mortgage
collateral
and
bidders
for
trust
bonds
bonds
due
1978.
Halsey,
Inc.; Kidder, Peabody & Co.; W. C. Langley
& Co.; Coffin & Burr, Inc.; The First Boston Corp.;
Merrill Lynch, Pierce, Fenner & Beane; Blyth & Co*
Inc.; Glore, Forgan & Co.
>
new
include
may
Stuart & Co.
in¬
products.
Underwriter—Morgan Stanley & Co., New York.
istration—Expected today (Aug. 4).
common
2,000,000 shares (there
Probable
^General Motors Acceptance Corp. (8/17)
July 28 it was announced that the company has under
consideration a public offering of $200,000,000 of deben¬
To
bidding. Prob¬
804,063 shares out¬
standing). It was reported previously that the company
proposed to raise approximately $1,500,000 through the
sale of 150,000 shares.
However, no immediate financing
Majestic Auto Club, Inc.
Aug. 25 it was announced company plans to offer 500,000 shares (par five cents) to the motorist and general
public shortly after completion of the current offering
of 100,000 shares to service station owners and operator*,
Office—Room 717, 141 Broadway, New York 6, N. Y.
jc Morris Plan Co. of California
(8/8)
bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Brothers; Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co. (jointly); Salomon Bros,
& Hutzler and Union Securities Corp. (jointly); Kuhn,
Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬
ly); Stone & Webster Securities Corp.
Aug. 2 it
Lehman
stockholders of record Aug. 8 the right to subscribe on
or before Aug. 29 for 30,600 additional shares of capital
Hammermill Paper Co.
May 10 stockholders approved a proposal on increasing
the debt authority to $20,000,000.
Underwriter—A. G,
None.
Heller
stock
new
on
share
Sept.
new
shares
after Sept. 6, 1955.
working capital.
States
share for each
be publicly
to
Price—$30 per
Underwriter—
Telephone & Telegraph
(10/1)
rights to expire
on
Oct. 28.
Warrants will be mailed on
Control—Ameri¬
of the
Oct. 1. Price—At par ($100 per share).
can
(9/5)
Telephone & Telegraph Co. owns about 86.7
outstanding
presently
Underwriter
stock.
common
■—
None.
Murphy (G. C.) Co., McKeesport, Pa.
April 12 stockholders approved a proposal to increase
limit of indebtedness from $3,000,000 to
each 25 shares held; rights to
Price—$22 per share. Proceeds—
For construction program. Underwriter—None. Unsub¬
scribed shares to be sold to highest bidder.
one
expire
one
it3
July 19 directors authorized an offering to stockholders
of 486,881 additional shares of capital stock on basis of
one new share for each five shares held as of Sept. 27;
was
reported company plans to issue and
additional shares of common stock (par $15)
common
stockholders of record Sept. 5 on the basis
of
the basis of
Unsubscribed
Proceeds—For
Co.
it
20
on
held.
Mountain
& Co.
Corp.
(par $10)
share.
July 18 it was reported that the company may^be con¬
sidering some new financing. Underwriter—F. Eberstadt
& Co. Inc., New York.
Housatonic Public Service
announced company plans to offer to
offered by company
(Inc.), Chicago, 111.
(Walter E.)
was
shares
six
for
26.
the authorized
Proceeds—For expansion program. Under¬
Lynch, Pierce, Fenner & Beane, New
York, handled preferred stock financing in 1942.
$20,000,000.
writer—Merrill
Hupp Corp.
May 13 stockholders approved a proposal increasing the
authorized capital stock from 3,000,000 to 4,200,000 shares
(200,000 of such increased shares shall be (new) serial
preferred stock, $50 par value and 1,000,000 shares shall
be common stock, $1 par value); also waiving of pre¬
emptive rights to such increased shares.
^National Fuel Gas Co.
file with the
Aug. 1 it was announce company plans to
application to offer its common stock
SEC this week an
,
prin¬
basis of 1.45 National shares for
shares of Pennsylvania Gas Co., a
in exchange for
cipal subsidiary, on a
Pennsylvania Gas share.
each
International
Bank, Washington, D. C.
April 25 it was announced company, in addition to plac¬
ing privately an issue of $500,000 convertible deben¬
tures, will offer additional convertible debentures to
shareholders, the latter probably sometime in the Au¬
tumn of this year.
Office — 726 Jackson Place, >N. W.f
Washington, D. C. Business—Industrial merchant bank¬
New Haven
June 7 it
was
reported company may do some
announced that company plans this year
to issue some first mortgage bonds due 1985.
Under¬
writer—To be determined by competitive bidding. Prob¬
Feb.
Wash.
financing
William D. Bost of Whitcomb
an
&
New York
&
Chemical
Corp.
Keystone Wholesale Hardware Co., Atlanta, Oa,
was stated that the company plans at a later
date to offer additional shares for sale nationally.
Au
offering of 16,666 shares of commcfn stock was recently
made
to
residents
of
Georgia
only
at
$3
per
share
Office—517 Stephens St., S.W., Atlanta, Ga.
Lithium Developments, Inc., Cleveland, Ohio
9 it was announced that company 'plans soon
June
file
a
registration statement with the
SBC covering
Halsey,
Stuart
&
Co.
Inc.;
Expected to be received on Oct. 19.
New York
Telephone Co.
Keith S. McHugh, President, announced thai
the company will have to raise more than $100,000,000
of new capital money to aid in carrying out its expan¬
sion and improvement program which will cost ap¬
Jan.
17,
proximately $200,000,000. Underwriter—For and bond*
to be determined by competitive bidding.
Probable
bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.
Northern Illinois Gas Co.
/June 14, Marvin Chandler, President, announced that the
company plans to spend $60,000,000 on new construction
through 1958, and that about $25,000,000 would be raised
through the sale of bonds in the period. Underwriters—
The First Boston Corp., Halsey, Stuart & Co. Inc. and
Glore, Forgan & Co.
'
<
to
a
proposed issue of 600,000 shares of common stock. Pro¬
ceeds—For general corporate purnoses.
Underwriter-
George A. Searight, New York, will head group.
bidders:
Peabody & Co.; Harriman Ripley & Co. Inc.;
July 11 it was reported that company is understood to
be contemplating the sale to the public of 700,000 shares
of sinking fund preferred stock this Fall and private
debt financing of about $40,000,000.
Stockholders will
vote Aug. 12 on approving an increase in the authorized
preferred stock from 700,000 to 1,500,000 shares. Pro¬
ceeds—For
expansion program and working capital.
Underwriters—The First Boston Corp., New York; and
Dean Witter & Co., San Francisco, Calif.
Jan. 27 it
(10/19)
Corp.
Kidder,
The First
Boston Corp. and Glore, Forgan & Co. (jointly); Blyth
& Co., Inc. and Smith, Barney & Co. (jointly);
BidsProbable
Co., New York, and Garrett
Co., Dallas, Tex.; and others.
Aluminum
State Electric & Gas
8 it was announced company plans to issue and
sell $25,000,000 of first mortgage bonds due 1985. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding.
Sulphur Co. (Texas)
was reported early registration is planned
undertermined number of common shares. Under¬
Kaiser
The First Boston Corp.;
July
it
writers—L. D. Sherman &
Co. Inc.; White, Weld &
Equitable Securities Corp. and Union Securities Corp.
(jointly); Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Kidder, Peabody & Co. and Stone & Webster
Securities Corp. (jointly); and Lehman Brothers.
planned in the Fall of this year. Investment Adviser—
Capital Research & Management Co., Los Angeles, Calif.
Underwriter—Kidder, Peabody & Co., New York.
of
was
Co.; Blair & Co. Incorporated;
Fund, Inc.
July 20 it was announced this company will be formed
to specialize in worldwide investment in the field of
natural resources companies. An offering of stock
is
March 30
4 it
able bidders: Halsey, Stuart &
Co., New York, is Chairman of the Board.
International Resources
Public Service Inc.
Orleans
New
time in the future.
with its pro¬
Underwriter—Probably Reynolds & Co., New
capital.
International Oil & Metals Corp., Seattle,
&
Clock & Watch Co.
announced that in connection
York.
ers.
some
was
posed plan of recapitalization to be voted upon July 26,
the company plans to raise not less than $300,000 of new
Isthmus
National
Bank, Denver, Colo.
that company plans to offer
to its stockholders the right to subscribe for 50,000 addi¬
tional shares of capital stock (par $10) on the basis of
one new share for each four shares held.
Price—$30 per
share. Proceeds—To increase capital and surplus. Meet¬
ing—Stockholders to vote July 28 on approving financ¬
ing and 25% stock dividend.
June 30 it
Lucky Stores, Inc.
April 20 stockholders approved
Ford Motor
May 23 it
Continental Aviation & Engineering Co.
June
&
1956.
to
series H,
program.
Under¬
Offering—Expected late in 1955.
first
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
& Beane (jointly); Lehman Brothers and
Blyth &
Co., Inc. (jointly): Glore. Forgan & Co.; and The First
Boston Corp. Offering—Expected late in 1955 or early
March 15 it
sell an
to
bidders—Halsey, Stuart & Co. Inc.; The First Bos¬
Corp. and Blyth & Co., Inc. (jointly); W. C. Langley
Co.; Smith, Barney & Co.; Baxter, Williams & Co.
by competitive
Stuart & Co. Inc.;
of
ner
to
Gale, Chairman, announced it should be
financing.
Proceeds—For new construction, which, it is estimated,
will cost about $125,000,0000 in 1955.
Underwriters—
For last equity financing were The First Boston Corp.
and Glore, Forgan & Co.
Fall before the company undertakes its next
was
Halsey,
plans
bonds,
mortgage
mortgage
$12,000,000
bidders:
first
1985. Proceeds—For construction
writer—To be determined
by competitive
sell 14,817
Jan. 24, Willis
it
Probable
$15,000,000
able
ton
and
of
due
share. Pro¬
Underwriters—To be determined
June
Registration—Expected on Aug. 25.
14
per
surplus.
Corp.
$10,000,000
bidding.
reported company plans to issue and sell
Commonwealth Edison Co.
June
Price—$30
announced company may issue and sell
was
Becker & Co.
(9/21)
$40,000,000 of debentures due 1980. Proceeds—For con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders— Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co. Bids — Planned for
Sept. 21.
bonds.
(CDT) Aug. 17 for the purchase from it of
$4,350,000 of equipment trust certificates to mature in
30 equal semi-annual instalments from March 1, 1956 to
Sept. 1, 1970. Probable bidders: Halsey, Stuart & Co.
July 25 it
between
stallment
Aug. 1 it was announced company plans to receive bids
up
held.
issue
new
common
New
shares
Power
for-1 stock
before Aug. 16 for
stock (par $20) on
share for each 3Vs shares held by
shares of
Long Island Lighting Co.
April 23 it was announced company
authorized
Chenango & Unadilla Telephone Co.
Aug.
three
April 14 it
31, W. F. Wyman, President, stated that company
1955.
each
ceeds—To increase capital and
Florida
Central Maine Power Co.
Dec.
Bank of Arizona
July 1 stockholders of record June 29 were offered the
right to subscribe on or before July 29 for 160,000 shares
of capital stock (par $10) at the rate of one new share
for
37
(501)
Northern States Power Co.
March 29
ments
for
it
was
1955
.
(Minn.)
that new capital require¬
approximate $31,000,000. Present
announced
will
Continued
on
page
35
The Commercial and Financial Chronicle...
Thursday, August 4, 1955
(502)
38
contemplate these funds will be
plans
obtained tem¬
Corp.
convertible
a
reported company plans to issue
the future,
the
of
Stuart & Co.
•
that it plans
by
shares of
of
one
Oct.
Leh-
Expected
on or
about Aug. 24.
Pacific Power &
Pennsylvania Electric Co.
Feb. 15 it was reported company plans to issue and sell
later this year $9,300,000 of first mortgage bonds. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding,
probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,
Inc.
Pennsylvania
Electric Co.
reported company proposes issuance and
sale of $7,500,000 of preferred stock later this year. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For¬
gan & Co. (jointly); Kidder, Peabody & Co.; The First
Boston
Co. Inc.
Pennsylvania Power & Light Co.
April 19, Charles E. Oakes, President, announced that
company plans this year to issue and sell $15,000,000 of
first mortgage bonds and use the proceeds for its con¬
struction program. Previous bond financing was ar¬
ranged privately through Drexel & Co. and The First
Boston Corp.
Peoples National Bank of Washington, Seattle,
Wash.
30
it
announced
Bank
plans to issue 25,000
shares of capital stock (par $20) as a stock dividend, and
a like number of shares will be offered for
subscription
by stockholders.
was
Public Service Electric & Gas Co.
(10/4)
July 11 it was reported company plans to issue and sell
$35,000,000 of debentures. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; Kuhn, Loeb & Co. and Lehman Broth¬
ers
(jointly), Morgan Stanley & Co. and Drexel & Co.
(jointly); The First Boston Corp. Bids—Expected to be
received up to 11
a.m.
(EDT)
issue
the
and
Probable
Telephone Corp.
on
Oct. 4.
surplus.
Union
Underwriter—Blyth & Co., Inc., Los An¬
terms
bidders:
make
to
Underwriter
and *
Halsey,
October
November
or
four shares held
Oct.
on
United
the basis
on
of about
as
19. Price—To
construction
Feb.
be de¬
24.
Gas
N.
corporation
Corp.
C.
McGowen,
plans
program.
York. Regis¬
holders.
13.
Proceeds—For
of United
and
pany
or
(par $12.50).
tional shares of common stock
and
United Gas
corporate purposes.
Underwriter—
Co., Boston and New York. Meeting—Stock¬
10.
»
(2) For bonds, to be determined by competitive bidding.
bidders: Halsey, Stuart & Co. Inc.; Salomon
& Hutzler; Blyth & Co., Inc.; Union Securities
Corp. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Lehman Brothers; The First Boston Corp.;
White, Weld & Co. and Shields & Co. (jointly). Offer¬
ing—Expected in September.
U.
for
ex¬
Bids received on
Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.; White, Weld & Co. and Union Secu¬
rities Corp. (jointly); Lehman Brothers.
emption
competitive bidding.
from
last sale of bonds were from
•
Southern Co.
July 28 it
to
common
common
each
18
Nov.
bank
stockholders
stock
(par 5) on
shares
10.
(10/19)
held
Warrants
loans
and
for
about Oct.
competitive
on
on
Price—To
Oct. 21.
on
Proceeds—To repay
in
additional
stock
of
Underwriter—To be determined
bidding.
Boston Corp., Ladenburg,
Rhoades
expire
19; rights to
Oct. 17.
investment
subsidiary companies.
by
1,004,870 additional shares of
a basis of one new share for
to be mailed
by company
Probable
bidders:
The
First
Thalman & Co., Carl M. Loeb,
& Co. and Wertheim
& Co.
(jointly); Blyth &
Co., Inc., Bear, Stearns & Co. and Dean Witter & Co.
(jointly); Union Securities Corp. and Equitable Securi¬
ties Corp.
&
Co.;
(jointly); Lehman Brothers; Morgan Stanley
Kidder,
Peabody
Pierce, Fenner &
to be received
up
Goldman,
and
Co., Cambridge,
Mass.
*
was
announced Sinclair Oil Corp. has agreed
384,380
of Westpan
Worcester
County Electric Co.
(10/18)
to file a registration statement
with the SEC early m September with respect to sale
of $8,500,000 first mortgage bonds, series D, due 1985.
Proceeds—For payment of bank loans and new con¬
struction.
Underwriter—To be determined by compe¬
The
company
titive
bidding.
proposes
Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce, Fenner & Beane, Salomon
Bros. & Hutzler and Stroud & Co., Inc. (jointly); Coffin
&
& Co., Inc.
(jointly); Blair & Co. Incor¬
Burr, Inc.; Kidder, Peabody & Co., Blyth
and
White, Weld &
Co.
porated and Baxter, Williams & Co. (jointly); The First
Boston Corp. Bids—Tentatively scheduled to be received
on Oct. 18 at company's office, 441 Stuart St., Boston 16,
Mass.
announced company plans to offer first
was
Inc.
Co.
bidders.
.
has
Application
Commission
&
stock (52.8%). Underwriter—Union
Securities Corp., New York, underwrote recent sale oi
Sinclair's holdings of Colorado Interstate Gas Co. White,
Weld & Co., New York, may be included among tho
reported company plans to issue and sell
bonds.
com¬
stock, to pay off a $225,000 loan and for working
March 2 it
shares
Southern California Gas Co.
mortgage
that
with the SEC to divest itself of its investment of
Bros.
California P.
stated
Westpan Hydrocarbon Co.
Probable
first
President,
$2,500,000 of notes, bonds or debentures which may be
in whole or in part convertible into common stock at
not less than $50 per share.
Proceeds^-To retire pre¬
preferred stock, Blyth & Co., Inc., San Francisco, Calif.
with
McGowen,
Brothers
Warren
capital.
Sherwin, President, recently reported that the
company will need a minimum of $11,000,000 new capital
to help finance its current $20,000,000 construction program. The financing will probably take the form of a
bond issue or preferred stock.
Underwriters—(1) For
filed
Corp.
July 19 stockholders approved a plan to refinance the
outstanding 40,665 shares of $2.50 cumulative preferred
stock (par $50).
It is proposed to issue not more than
D.
been
C.
might
ferred
of
N.
(jointly); Harriman Ripley
(jointly).
Diego Gas & Electric Co.
was
September
Sachs & Co.
competitive bidding. Probable bidders: Hal¬
Stuart & Co. Inc.; The First Boston Corp.; Union
Securities Corp.; Blyth & Co., Inc. and Harriman Ripley
& Co. Inc. (jointly).
$40,000,000
com¬
subsidiary.
Co.; White, Weld & Co. and Equitable Securities Corp.
(8/22)
sey,
Feb. 28 it
ot
program
stock). Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Morgan Stanley &
mined by
E.
construction
Gas Pipe Line Co., a
Offering—Expected in
mon
May 10 stockholders approved an additional issue of
up to $25,000,000 of first mortgage bonds, of which it
is planned to sell initially $19,500,000 principal amount
to mature in 40-years. Proceeds — For property addi¬
tions and
improvements.
Underwriter—To be deter¬
San
that
be doing some debt financing, with this
year's total financing program reaching about $50,000,000 (including about $35,000,000 to $40,000,000 of com¬
meet Aug.
Louis-San Francisco Ry
St.
,
an
24,
pany
from issue of sinking fund notes
insurance company, for new equip¬
general
and.
announced
October.
Feb.
Proceeds—
From sale of stock, and
bank
President,
raise
to
$35,000,000 to $40,000,000
through the sale of additional common stock to stock¬
Aug. 1 it was announced company plans to offer to its
common
stockholders an issue of about 125,000 addi¬
a
1955.
offering of 195,312 additional
an
stock to its stockholders
Underwriter—None.
ment
Missouri
30-year first mortgage bonds late in 1955.
repay bank loans and for new construc¬
—
To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc. and Union Securities Corp. (jointly);
The First Boston Corp.; Lehman Brothers and Bear,
Stearns & Co. (jointlv): White Weld
Co. and Shield®
& Co. (jointly).
Bids — Expected to be received in
it St. Croix Paper Co.
to
of
Co.
reported company expects to sell about
was
Proceeds—To
tion.
(10/4)
Proceeds—For
later.
Electric
it
$30,000,000
-
iadvised New York P. S. Commission
rights to expire
be named
June
the
tration—Planned for Sept.
was
Corp.; Smith, Barney & Co.; Harriman Ripley &
for
15
Jan. 24
(10/5)
Light Co.
July 5 it was reported company plans to issue and sell
30,000 shares of cumulative preferred stock (par $100).
Underwriter—Expected to be local dealers. Registration
—Expected on Aug. 24.
Feb. 21 it
of
bonds.
share for each
new
4;
termined
July 6 it was reported company plans to issue and sell
$10,000,000 of first mortgage bonds due 1985. Underwriter—To be determined by competitive bidding. Prob¬
able bidders—Halsey, Stuart & Co. Inc.; Union Securi¬
Bros.
& Hutzler (jointly); Blyth & Co., Inc. and White, Weld
& Co. (jointly).
Bids—Tentatively planned to be re¬
ceived up to noon (EDT) on Sept. 27.
Registration—
proposal increasing the
a
Underwriter—The First Boston Corp., New
(9/27)
and Kidder, Peabody & Co., (jointly);
Brothers, Bear, Stearns & Co. and Salomon
the
common
holders to
ties Corp.
approved
amount
company
Estabrook &
Light Co.
sdbscribe on or before
95,000 additional shares of capital stock
(par $10) on the basis of one new share for each five
shares held. Price—$33 per share. Proceeds—For capital
Aug.
Inc.; Morgan Stanley & Co.
Rochester
July 25
Angeles, Calif.
announced stockholders of record July 22
was
1955, have been given the right to
-
the directors should deem it in the best in¬
to issue bonds, the board will
conditions
tures.
man
exceed
the company
of
determine
(9/20)
&
would not
plans to sell addi¬
company
Bank & Trust Co., Los
July 26 it
authorized indebtedness of the company to $125,000,000.
debt at Dec. 31, 1954 totaled $84,077,350. If, in
reported company plans to issue
Power
This
reported
construction, which is estimated at about $17,500,000.
Underwriter—Dillon, Read & Co. Inc., New York
Funded
sell
Pacific
issue.
was
geles, Calif..
June 7 stockholders
terests
15 ,it
Union
debenture
Proceeds—For working capi¬
tional first mortgage bonds later to finance cost of new
and
Service Co.
was
a
publicly offered.
Texas Gas Transmission Co.
Reading Co.
and
$1,000,000 of first mortgage bonds and $300,000 of
additional common stock (the latter to stockholders) in
near future.
Proceeds—To retire bank loans and reim¬
burse the company's treasury for construction expendi¬
it
Under¬
Office—Buffalo, N. Y.
March
writer—Probably Smith, Barney & Co., New York.
competitive bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Harriman Ripley
& Co. Inc. and Stone & Webster
Securities Corp. (jointly); Kuhn, Loeb & Co.; Blyth
& Co., Inc.; Union Securities Corp. and Salomon Bros
& Hutzler (jointly); The First Boston Corp.
Registra¬
tion—Planned for Aug. 17.
Bids—Expected to be re¬
ceived up to 11 a.m. (EDT, on Sept. 20.
Water
&
and
Corp
Boston
Halsey, Stuart & Co. Inc., is re¬
group to bid approximately $25,000,000
Pure Oil Co.
July 18 it was reported company now plans to issue and
sell $17,000,000 of first mortgage bonds due 1985. Pro¬
ceeds—To retire bank loans and for construction program.
28
to be
tal.
April 9 stockholders approved the possible issuance of
and sell
stock (par $100).
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Blyth & Co., Inc.; Lehman Brothers; Kuhn, Loeb
& Co.; Harriman Ripley & Co., Inc. and Stone & Web¬
ster Securities Corp. (jointly); The First Boston Corp.;
Union Securities Corp. and Salomon Bros. & Hutzler
(jointly).
Registration—Planned for Aug. 17. Bids—
Expected to be received up to 11 a.m. (EDT) on Sept. 20.
Ohio
First
The
Com..
$50,000,000 and would be issued at the discretion of the
directors any time within the next 12 months.
Under¬
determined
common
of which 300,000 shares (to be convertible into common)
are
bonds.
of
60,000 shares of cumulative preferred
construction program.
March
Underwriters—Probably Stone
years.
Securities
ported to head
(9/20)
be
ot
City,
Sterling Precision Instrument Corp.
Smith, Barney & Co.
Proceeds—For
Underwriter—To
five
next
Webster
announced that it is planned, following
proposed merger into company of Olympic Radio &
Television, Inc., and Victoreen Instrument Co., to issue
and sell $2,500,000 of debentures.
Underwriters—Van
Alstyne, Noel & Co. and Barrett Herrick & Co., Inc.,
both of New York. Meeting — Stockholders to vote on
merger in August, 1955.
Ohio Power Co.
shares
60.000
June 6 the stockholders voted to approve an authorized
issue of 500,000 shares of first preferred stock (par $10),
large-scale expansion program, involving $75,000,000
in'order to keep abreast of estimated load growth over
was
June 20 it was
and
Broadway, New York
King, Libaire, Stout & Co., New York.
Offering—Expected in July.
a
the
Ohio Power Co.
debentures
6%
Inc.
writer—Eisele &
& Co.
outside sources—at least to the extent
dollars." The company has scheduled
from
purposes
& Co.; Lehman Brothers and Riter
(jointly); Glore, Forgan & Co.
it
Foods,
reported company plans to offer $600,-
Office—160
stock.
of several million
ly); Smith, Barney
June 28,
of
000
Frozen
was
Puget Sound Power & Light Co.
and Union Securities Corp. (joint¬
Nuclear-Electronics
April 18 it
April 5, Frank McLaughlin, President, said that "it will
be necessary in 1955 to obtain funds for construction
Corp. (joint¬
ly)- Merrill Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Equit¬
& Co.
Southland
•
ley & Co., Drexel & Co. and Glore, Forgan
Co., Inc. and The First Boston
able Securities Corp.
Co.
Gas
July 11 it was stated that company may issue and sell
late in September 250,000 shares of cumulative preferred
stock (par $100). Underwriters—May be Morgan Stan¬
porarily from short-term bank loans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth &
Electric &
Service
Public
Continued from page 37
&
Beane.
to 11 a.m.
tration—Not expected until
Co.,
Merrill Lynch,
and
Bids—Tentatively scheduled
(EDT) on Oct. 19.
Sept, 21.
.
Regis- '
Co., Worcester, Mass.
it Worcester County Trust
offered to its shareholders of record
July 26, 1955 the right to purchase an additional 10,000
shares of capital stock (par $25) on the basis of one new
share for each 11 shares held; rights will expire on Aug.
15. Price—$60 per share. Proceeds—To increase capital
and surplus. Underwriter—None.
July 26 the Bank
York County Gas
Co., York, Pa.
announced company contemplates the
issuance and sale later this year of a new series of its
first mortgage bonds, in an aggregate amount not yet
determined.
Proceeds—To pay for new construction
and probably to refund an issue of $560,000 43,4% first
mortgage bonds due 1978. Underwriter—May be deter¬
29
June
it
was
mined by competitive
sey,
bidding.
Probable bidders; Hal¬
Stuart & Co.-Inc.; A. C. AUyn
Weld
&
Co.
and
Shields
&
Co.
possible that issue may be placed
& Co. Inc.; White,
It-is also
(jointly).
privately—
~
Number 5452
Volume 182
The Commercial and Financial Chronicle
...
the
of
man
Philadelphia
(503)
Rogers Co. Formed
Invest-
City, Mo.; Lincoln, Neb.; Los An¬ mond, and Washington. The ob¬
geles, Calif.; Minneapolis, Minn.; servance was held in those cities
New York City; Oklahoma City,
cor the first time this
year.
May 1.
Mr. Potts asserted
on
Okla.; Omaha, Neb.; Philadelphia
that plans
Invest-in-America Week is an and Pittsburgh, Pa.; Providence, were being made to extend nexc
undertaking conducted jointly by R. I.; Richmond, Va.; San Fran¬ vear's Invest
in
America Week
financial and industrial leauers to cisco, Calif.; St. Louis, Mo.; To- to a number of cities in addition
promote improved public under¬ peka, Kans.; Tulsa, Okla:; Wash¬ to the 22 that participated this
standing that the "creation of ington, D. C., and Wichita, Kans.
year.
Invest-in-America Week on a more and better jobs" in industry
The National Board issued local
nationwide
basis
will
be
ob-; depends on the free flow of capi¬
John M. King Opens
Charters to
Invest
in
America
served next year from April 29 tal, Mr. Potts explained.
Week
Committees
in
Charlotte,
WHEATON, 111.—John M. King
to
May
5,
Frederic
A.
Potts,!
Under the national
chairman¬
Denver,
Houston,
Minneapolis, is engaging in a securities busi¬
Chairman of the Board of Gover-'
ship of Reese H. Taylor, Presi¬ New York City, Providence, Rich- ness from offices in Wheaton.
Announce Invesl-
in-America Week, held there and
in 21 other cities last April 25 to
In-America Week
Nationwide Basis
-
-
the
of
nors
Invest-in-
National
America Committee announced.*
Mr.»
Potts,
President
of
Philadelphia National Bank,
reelected
the
as
was
Committee's
Board
Chairman for another year
at the
group's annual meeting
Union
Week
Oil
Company
Invest
activities
in
-
OAKLAND, Calif.—Malcolm A.
Rogers has formed Rogers & Co.
with offices at 5978 Rincon Drive
to engage in a
held
NOTICES
DIVIDEND
this
re¬
■•••I
DIVIDEND NOTICES
,
Chairmen, newly created
was
announced
Central
resident
&
Board
of
E. F. Hutton &
25
cents
share
per
The
S. By-
THE FLINTKOTE COMPANY
Berkshire
dividend
a
payable September 1, 1955 to stockhold¬
ers
of record August 10, 1955.
July
28,
G.
CHACE, JR.
President
1955
New York 20,
of
the Common Stock,
on
MALCOLM
Eastern Region—Robert
of
Directors
New
banker,
investment
A
share
of
stockholders
He
Chair¬
was
of
record
at
the
1, 1955.
quarterly dividend of $.60 per
declared
been
has
on
A
DIVIDEND NOTICES
quarterly
cents per
dividend
been
declared
to
the
close
10,
record
of business on
the
at
stockholders
of
of record
of
record
Atlas Corporation
ness
the
the
a
eighths
Common
Corporation,
No.
55
to
1,
at
the
26,
close
business
of
10t
a
AND
DIVIDEND of
STOCK
September
15,
1955.
stockholders of record at the
business on September 1, 1955.
„
A.
McCASKEY,
JR.
Record date, August
PACIFIC
195^
Payable September 1,
Preferred
Stock
quarter ending September 30.
are
payable October 1,
V record
•
•
I
A regular quarterly dividend^of 50 cents per share
on the
common stock
($10
of
COMPANY
■
5
Birmingham, Alabama
4
Viscose
American
dividends
declared
1955,
and
share
per
twenty-five cents
the
on
five
*
9
!
Common Stock Dividend No. 66
■
•
was
acr
INDUSTRIES
declared by
dividend
A
on
the
payable
stock,
common
of
business
on
cents
share has been declared
on
the
J
Southern Natural
J
pany,
Common
Stock
S
ord
■
Preferred Dividend No. 194
on
Secretary
B. c. Reynolds,
per
both
1955,
1,
record
July 20,
A dividend of
share
the
at
to
close
this
payable September 13,
at
August 31, 1955.
H. D.
'
rec-
the close of business
McHENRY,
Vice President and Secretary.
Dated: July 30, 1955
H.
Pullman
preferred stock of
Corporation has been
declared
ber 1,
1955.
payable Septem¬
1955 to stockhold¬
of record at close of
BROWN
business
Secretary and Treasurer
Secretary
July 27, 195.5
I
the $50.00 par
on
vertible
ers
WILLIAM
62per
•
of
Gas Com-
value 5% cumulative con¬
1955 to holders of
of
40
per
•
per
(50 cents)
August
on
shareholders
of
;
preferred
cumulative
(5%)
a
September 6, 1955. The stock trans¬
the Board
of Directors on July 27,1955.
■
1955 to stockholders of
stock and fifty cents
share
Both dividends
•
(
GAS
NATURAL
:
the
1955 and
15, 1955,
INCORPORATED
the
dollar
one
cent
for
Secretary
SOUTHERN
j
:
($1.25)
share
•
of record August
•
•
er
Corporation at their regular meeting
July 6,
close
5, 1955.
•
Ear value) payable Septem1, 1955, to stockholders
Notice
fer books will remain open.
E. F. Page,
•
18, 1955
VISCOSE
Directors
dividend of 2S<f per share on the Common
Stock have been declared.
;
FINANCE CORPORATION
AMERICAN
188
the
the
■
198
on
stock'
to
at
2%
•
of
(lr/2%)
1955,
record
each 100 shares held)
Company
per
of
of business August
DIVIDEND NOTICE
on
75tf
10,
holders
Treasurer.
July 28, 1955
Bank Note
No.
tember
URQUHART,
Secretary
American
■
stockholders
(at the rate of 2 shares for
the
Dividend
of
to
a
•••••••••
the
of
Treasurer
Common
on July
quarterly
dividend of 50tf per share on
the outstanding capital stock of
this
Company, payable Sep'
1955, declared
26,
A
Stock
CORPORATION
Dividend
9, 1955
on
Preferred Dividend No.
The Board of Directors
the capital stock of
W. D. Bickham,
on
the Common
Corporation.,
dividend
on
Corporation, payable Sep¬
share
Preferred
AVISCO
quarterly
share
July 27,1955
August 2,1955
A
divi¬
of record August 17, 1955.
1955
Walter A. Peterson,
third-quarter
M. W.
on
share has been declared, payable
September 20, 1955 to holders of
August
a
of Directors has
QUARTERLY CASH DIVIDEND
share
regular quarterly dividend of 50^
Stock-of Atlas
Dividend No. 178
1955
declared
and three-
also
nine
per
record
MOBIL
COMPANY, INC.
OIL
DODGE
of Sixty-five Cents (65(f)
Notice of
Preferred
close of
Treasurer
Board
tember
460 West 34fh St., N.Y. 1, N.Y.
per
S.
A
busi¬
Board
payable
Corporation,
Common Stock
of
($1.09373)
cents
of
September
on
Treasurer
N. J.
July 26, 1955
1955,
stockholders
the
dc'lar
one
Cumulative
$4,375
Dividend
of
dividend
M. J. FOX, Jrj
Bloomfield,
1955. The
SOCONY
dend
close
at
The
York 5,N.Y.
1955, to stockholders of record
August 8, 1955.
Sep¬
PAUL C. JAMESON
declared
payable September 30,
33 Pine Street, New
August 1 1,
common
on
payable August 18,
1, 1955, to stockholders of
on
Penna.
Common
on
Twenty -five cents
share
a
«>
At a meeting of the Board of Directors of
Allegheny
Ludlum
Steel
Corporation. held
today, July 28,
1955, a dividend of sixty
cents
(60c)
per
share was
Stock
payable
July 28, 1955
The
CORPORATION
to
of
CORPORATION
Allegheny Ludlum Steel Corporation
on
dividend
stock
transfer books will not close.
this
declared
de¬
the outstanding
on
August 25, 1955.
Pittsburgh,
Secretary
record
per
be mailed.
EDMUND HOFFMAN,
tember
($0.25)
the close
at
Stock of this Company, payable
Checks will
share
Common Stock,
has
August 3,1955.
com¬
On July 26, 1955 a quarterly dividend of one
and three-quarters per cent was declared on
Transfer books will remain open.
Directors
quarterly
a
25c per
of
PHELPS
Secretary and Treasurer
October 1, 1955 to Stockholders of record at
the close of business September IS, 1955.
regular semi-annual
a
dividend of
CLIFTON W. GREGG,
South Bend, Indiana
STOCK
declared
NOTICE
Vice-President and Treasurer
T. E. JEANNERET,
PREFERRED
No. 7
business
Drawrys Limited U. S. A., Inc.,.
can company
on
CORPORATION
August 26, 1955.
forty
on
clared
stock, payable September 10,1955
to stockholders
AMERICAN
of
Board
Stock payable Sep¬
1955,
of
(40)
share for the third quarter of
has
1955
mon
the Preferred
9
pifiV'
DIVIDEND
the
tember
DREWRYS
resident
partner of Merrill Lynch, Pierce,
& Beane.
the
Common
Ward,. Philadelphia
Fenner
on
Preferred
$4 Cumulative
share
added to its membership T. John¬
son
declared
close of business September
also
Governors
been
has
Stock payable September 15, 1955
A
The' Board
C.
DIVIDEND NOTICES
N. Y.
quarterly dividend of $1.00 per
York City.
*~
B.
State Street.
NATIONAL DISTILLERS
The
to
field,
of
staff
the
The Board of Directors has
VThe
Hathaway Inc. has declared
Region—John Latshaw,
partner,
to
CORPORATION
Co., Kansas City, Mo.
"
added
Morton & Co.. 131
DIVIDEND
len, resident partner, Walston
Co., San Francisco, Calif.
♦
been
PRODUCTS
offices,
Western Region—Daniel J. Cul-
•
BOSTON,
Mass. —Joseph
L.
Gruber, Jr., Ceno L. Neri, John B.
Philbrook
and
Joel
Quint have
follows:
as
;
(Special to The Financial Chronicle)
DIVIDEND NOTICES
spring in Atlanta, Ga.; Charlotte,
N.
C.;
Denver,
Colo.;
Detroit,
Mich.; Houston, Texas;
Kansas
Election of three regional Vice-
'
securities business,
B. C. Morton Adds
America
-
were
of
r—
held here.
cently
of
California,
the
-
dent
-
]
Chronicle)
(Special to The Financial
Next Year
-
39
August 15,1955.
Incorporated
89th
Year
Consecutive
Quarterly
Cash
YALE &TOWNE
DECLARES 270th DIVIDEND
lit PER SHARE
of
Dividends
On July
paid by Pullman Incorporated
Common Dividend No. 143
and
of
\
A dividend of $1.00 per
share
on
the
stock of this
CITIES SERVICE COMPANY
common
Corporation
15,
payable
1955
to
share will be
paid
on
per
per
declared
September
August 19,
was
by the Board
of past
1955.
earnings,
payable
CHAMP CARRY
on
Oct. 1, 1955, to
President
Dividend Notice
(75£)
share
of Directors out
14, 1955, to stockholders of
record
seventy-five
cents
regular quarterly dividend of
seventy-five cents (75f)
has been declared
September
A
28, 1955,
dividend No.270
predecessor companies
stockholders of record
stockholders of record at
at the close of business
The Board
>
of
declared
quarterly dividend of fifty cents
share
a
on
tember
its
Directors
$10
par
of
Cities
Service
Company has
($.50)
per
value Common stock, payable Sep¬
close of business
ber 1,
Septem¬
Sept. 9, 1955.
1955.
F. DUNNING
C. Allan Fee,
Executive Vice-President and
12, 1955, to stockholders of record at the close of
business August
Secretary
12, 1955.
ERLE G.
CHRISTIAN, Secretary
July 28,1955
:".trailmob7ie7i
THE
Secretary
YALE & TOWNE MFG. CO.
Cash dividends
paid in every year since 1899
The Commercial and Financial
Chronicle... Thursday, August 4, 1955
(504)
40
BUSINESS BUZZ
on...j *
Behind-the-Sceit* Interpretation*
Nation** Capital
from the
WASHINGTON, D. C.
beginning of the year,
having pro¬
posed broad welfare and spend¬
ing proposals and the Demo¬
crats seemingly determined to
House
purveying like merchandise,
have been natural to
liave
expected
the scope of
Federal activities to have been
would
considerably.
widened
»
This
j
not
was
that the Con¬
reduced the calls which
gress
place
will
On
Government
taxpayer.
the
«
Federal
the
ultimately
or
now
tiful
upon
was
sis)
arrived
the
immediate.
voting
President at the
However, the
for
demand
his
health
enlarged
an
"reinsurance."
He
the
been
fiscal
,
costly pro¬
which failed are those
grams
system of dams
water in the upper
building
for
to
store
a
the Demo¬
raise price
supports to a mandatory 90%,
to cut personal income taxes,
Colorado River, and
cratic
and
.social
uals
over
eligibility
of
from
sions
the
On
for
women
without additional taxes.
oline taxes,
65 to age 62.
age
Con¬
side,
spending
raised pay considerably
postal workers without,
however,
also
boosting
mail
rates.
Congress also was lib¬
eral toward raising the pay of
all Federal employees.
And it
boosted
to
$1.5
billion from
the
segregated
amount
the
million
cial
foreign
for
of
one
spe¬
Alberta
the
earnestly
de¬
vehicle
ernmental
cies.
nor
"little"
was
generally,
purposes
which would then give
physical
the
cogency
ditional
a
broad fronts.
What
particular both the White
House
and Congress went for
tricks in the farm field which,
In
as
bill
roads
week
defeated
finally
pipeline
and
was
House
last
the
in
not
He ;
the
desire,
a
berta
of
this
the
to
the
Western
Oil
letter
Angeles.
(This column is intended to re¬
flect the "behind the
scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's own views.)
>
project,
Two With Lester,
Ryons
agricultural credit risks,
and
insured
roomed
a
grade
the
guaranteed
Farmers
Home
and
Lehr
Natural Gas Conser¬
Fred
Ryons & Co.,
Board.
members
declared that today Al¬
is capable of producing
P.
affiliated'
become
minute
more
overnight
This lobby was
government
asked
the
at
for
$2
last
billion
for the Commodity Credit
«
than
there
tire
any¬
to
of
with
are
many
and
dealers
pendent
and
has already shown
List
on
Teviot
Livingston
of
Department
Industrial
Service,
West 57th
353
York
New
19,
N.*"
(paper), $3.00.
on
truckers.
dependent
SECURITIES SPECIALISTS
50 BROAD STREET
TEL:
session
>-
v
NEW YORK 4, N. Y.
•
TELETYPE NY 1-971
HANOVER 2-0050
,
•,
businessman"
has
STOCK
request
Post
Securities
Office Square
Boston, Mass.
Hone HUbbard 2-1990
Teletype BS-69
FOREIGN
business-
that the "in¬
ofi
Investment
10
independent
inde¬
This
(Common)
Copies
■ v1" v
i"'.**?"—■ -a,.'.r■
*
\
'
'
i1-1; j...
;
'
Y.
-k
New Views
B
and
Engineering—Re¬
Management
search
—
and
University,
Columbia
others,
Lester,
Carl Marks & Co. Inc.
of
Human
Management
LERNER & CO.
many
"small
man"
port program," neither the Ad-
in
Relations
623 South Hope St.,
the New York and
fight the
made
tacitly
tising of the "flexihle price
sun-
Bureau
261
Research,
Selected Reading
Angeles Stock Exchanges.
Los
—
Charles
Madi¬
Avenue, New York 16, N. Y.
„
much broader
Trucking
bearing out the con¬
tention that despite the adver¬
thing in
James—National
Economic
CLASS
the
target
by
the
disappointed
Speaker
Rayburn.
Actually
Corp. price support operations.
eloquent than
and
RIVERSIDE CEMENT CO.
American
the
Association,
This is
more
Fisher
E.
the
in
Industry
Coal
Peikert have
taxes on trucks, truck
tires, and diesel motor fuel.
loans.
the
Waldo
higher
Administration
Respecting the farm program,
Fixing
Price
Bituminous
ANGELES, Calif.—Ida K.
LOS
into the record
expediture. What killed the bill
was
the
lobby which mush¬
via
Balti¬
2, Md.
Minimum
M.
of
Institute
CALIFORNIA
government
deep liability for poorer
into
more
—
Avenues,
(Special to The Financial Chronicle)
there
even
they develop over the years,
plunge
Guilford
and
Street,
secretly of many members of
Congress, to avoid this large
will
•
Oil Prospect High
introduced
vation
the
and de¬
year
per
Robert
taxes.
rather
on
boosting
bills,
spending
Management Sciences, Mt. Royal
by 1960," Mr. Mc¬
and Gas Assn., Los
forecast
leum
to the collection of ad¬
benefits of veterans and farmers
president
by I. N. McKinnon,
Chairman of the Alberta Petro¬
a
budget,
the
balance
to
into
to
stated.
wrote
He
part of the House Armed
Services subcommittee hearing
the expenditure of
and gas taxes for gov¬
$6.00
son
for
of
Management
of
of
good engineering prac¬
will approach one million
Kinnon
As
sired to stop
for
incentive
,
(published quarterly),
Sciences
exploration
barrels daily
in
.
Institute
the
(under
tice)
Swiss
Management Science—Journal
the
Board
esti¬
mates that potential production
for the sake
balanced budget.
of the
Budget Balancing
the block
an
in the Life of
Bank—George
Solo-
land.
Devonian reefs with¬
necessary
this does not con¬
love
Cen¬
Co., 1755-1955—Two
&
a
a
provide
of flukes and
far
—
of
veytchik—Cloth—Leu &
Co.'s
Bank Limited, Zurich, Switzer¬
velopment,
got
Government
the
turies of History
and
Cardium
extensive
"Assuming the existence
sufficient
market
outlets
balancing.
on
Leu
accumulations in
unexplored.
Except for
(D.,'Va.)
a
handful of others, this
Congress has hardly any¬
who will lay his political
head
purposes.
Administration
curren¬
There were also many
ifor
nor
Neither the Congress nor
picked up under the price
support which the government
"sell"
spending
Avoid
crops
can
repayment
debt
84th
special
for
neither
recent discoveries
large area of Western Al¬
berta which is so far virtually
in
Senator Harry F. Byrd
and
oil
of Upper
alternative
Congressional
a
budget
not seg¬
for special purposes in
Federal budget.
They are
gress
session;
note
regated
for
$700
this
on
Mississippian formations, but
also on the known occurrences
of this same
proposals
spending
->
excise taxes on tires
and motor vehicles, are
because
only
major
the
politics, neither the big Demo¬
cratic
nor
the
Eisenhower
Actually, revenues from gas¬
pen¬
of
town.
in
man
While
they
costs
that
of the
part
raising
were
individ¬
50, and to lower the
pretend
and
only
because
was
griest
"unsound finance"
the
on
button
not
of
Documents,
U. S. Government Printing Of¬
fice,
Washington
25,
D.
C.
(paper), 350' :
is confident
Board
Commission on
the Executive
'
that many Democrats
deserted Speaker Rayburn, who
currently is just about the an¬
thought it would
be smart to hit the Administra¬
tion
Superintendent
pressure
would
Democrats
and
18
over
It
off these bonds.
incapacitated
payments for
children
pay
"as the
' ,[
ship,
left."
pretend that gas
motor vehicle taxes
benefits of
by
including
security
was
and
Branch
extra-marital
highway financing plan, did not
turn
and vote for the Fallon
bill, as expected by the leader¬
proposal
House
White
financing
of
record of voting for
a
Activities—Report to
Intelligence
—-
Eisenhower
the
and to further
the
boost
to
making
oil per
that
further substantial reserves of
crude
oil
remain to be - dis¬
covered.
This belief is based
of this pres¬
Republicans,* after
that
Street, New York 10, N. Y.,
$5.00.
Organization
"The
1939*
26th
the Congress
.
because
was
sure
strictly to rub
the Alladin lamp and pretend
that the $21 billion to be bor¬
rowed outside the budget didn't
exist as a government liability
to
projects
It
$30-billion-odd,
miles of interstate
40,000
The
Among the other
,
highways.
for
Spending Programs Fail
thing: They wanted
at a cost variously
of from $25- to
building programs whose costs,
temporarily concealed in
bookkeeping trickery.
one
re-make
to
Tragic Years
The
barrels per day*
wir^.
States,
(paper),
—
day. Actual production in 1955
is expected to average 300,000
4
distance calls
Fallon or Demo¬
cratic bill with its tax features,
than
against almost any con¬
troversial pending bill in years.
the
against
contest
simply
plicitly backed vast school con¬
struction
and
interstate road
the Hill.
and long
letters,
both parties in po¬
had
in
mind
litical
ex¬
although real, would have
be continued
undiminished.
13 years
or
Actually
including
program,
health
12
just
500,000 barrels of crude
lobby to be reckoned
a
on
Members reported more
would
program
renewed
with
it) that the $875"regular" Federal aid
miliion
beginning of this year
become
(but
Congress"
of
"intent
not
appreciable nor
C.
Sisley Huddleston — The
Devin-Adair Company, 23 East
before the
expressing
by
at
wife hung a shiner on him
picture was taken
"It seems his
D.
6,
cents.
1947
program
Wage
of Com¬
United
the
Washington
(depending upon
giving out the analy¬
lion
who
C.
D.
Minimum
of
of
merce
$50 bil¬
or
25,
Legislation—Chamber
France:
modest $48
more
a
appropriations, however, relief
from spending burden thereof
be neither
Economics
50
—
Documents,
350.
(paper),
The Democratic program was
appropriations for fu¬
ture years. In view of the huge
backlog of unspent foreign aid
eign aid
Government
of
Washington
fice,
streets.
on
Executive
the
of
Government Printing Of¬
U. S.
years
of
Defense—
Commission
—
Superintendent
good measure added in
the amounts cities would spend
on
of
the
of
Branch
and for
propriations, cuts were negli¬
gible.
There was a cut of a
few hundred
millions in for¬
will
10
Outside
Enterprises
Organization
this beau¬
going
kept
U. S.
Office,
Printing
Study
Staff
Federal aid program
be
would
routine ap¬
1953—Superin¬
Documents,
Department
the
newly doubled
assumed that the
"regular"
Silver for the
Washington 25, D. C. (paper),50^
Business
Administration
the
figure
Consump¬
and
Year
of
Government
$101-billion program, so
a
called, because to get
the positive sense
Calendar
tendent
this
was the huge roads program.
Both
sides
tried
to make it
fairly glitter with tons of pure
gold. The Eisenhower program
was
good year in
a
Bloopdoople
ended
year
tion of Gold and
shining example of
One
in
it
J.R
fiscal
1954, including report
30,
Production
on
OUR PRESIDENT
other fellow.
the
smart
Report of the Director of
Mint,
June
to be
Both the White
House
and
the
Democratic
leadership seemed to outsmart
themselves whilst trying to out¬
programs
rather simple.
10, N. Y., $4.50.
the
appeared
ing
with the President
compete with the White
York
of large
ure
23 East 26th Street, New
Annual
explanation for the fail¬
welfare and spend¬
The
the outset.
At the
pany,
Out-Tricked Each Other
.grade of both Houses was much
smaller than was expected at
Com¬
J. P. Veale—Devin-Adair
spending.
receiving Federal
for
Barbarism—Frederick
Advance to
problem of what to do
with this hungry and large maw
spending and wel¬
proposals which made the
fare
come
with the
of
number
—
Congress
to grips
the
nor
effectively
has
inasmuch as the
of the taxpayer
And You
/
ministration
This
—
•year's session of Congress was
a good one from the standpoint
Bloopdoople
Corp.
@FedFRASER