Full text of Commercial and Financial Chronicle : December 1, 1955, Vol. 182, No. 5486

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

u N ivh Kiii
ry
OF

uN
op*

MICHIGAN

M/i
.

I'v

L_

^

^

ESTABLISHED 1S39

i

PL^iodical
reading room

Commercial
Reg. U. B. Pat. Office

Number 5486

Volume 182

New York

Price 40

7, N. Y., Thursday, December 1, 1955

Cents

a

Copy

editorial

Economic Developments
Point to a Crest Ahead

We See It

As

"Let it not be said

throughout the world died of

a

which

Bowles

Mr.

which

think saved Europe
The
now

Mr.

a

Mar¬

a

most

other

Democrats

from Russia and Communism.

well

America, and in this way halt the march

of the Soviets and Communism round the world.
In

Bowles is intent upon reviving
seeing to it that it assumes

Mr.

brief,

Four"

"Point

dimensions which would render

budget out of the question
economically.
ophy

as

this calmly, and

namic

politically if not

tion

now

in

the

rest

economy

and

leading

most

such philos¬

not little disturbed
to deal with it at all.

is emphasis
for our dy¬
industries certainly
there

so,

In this paper

velopments during the coming year,

of the

expressed thought that there is

ahead,
As

most

and

wait

a

if

see

few minutes
you

—

it 11 change

don't like it better";

planning

there

is
by

the

—

so

W. E. Hoadley, Jr.

view

if

that

on

on page

NOW IN

SECURITIES

—

and

the

early

■

Group

Underwriters, dealers and

eum

*"

Continued

Municipal

December Monthly Letter
What

address

by

Mr.

Terry before the Financial

NEW

the SEC
page 38,

State, Municipal

Friday

ready

,

J. R. WlLLISTON & CO.
ie b a

established

and

ST^,N.Y

other

new york

stock and

115 Broadway,
Miami

stock

commodity

—

OF NEW YORK

exchanges

NewYork 6, N.Y.

Beach

THE FIRST NATIONAL CITY BANK

exchange

Rye, N.

T. L.WATSON
established

Teletypes NY 1-708

Bond Dept.

&co.

Commission

Stock Exchange

Orders

STREET

BROAD

NEW YORK

4, N. Y.

CANADIAN

Dallas




•

perth amboy

Chase Manhattan

BROADWAY, NEW YORK 5

34 offices

from

BANK

coast to coast

DIRECT

WIRES TO

General Gas

NEW YORK

upon

request

"

Regular Rates

PoMcnoTf Securities

MONTREAL AND TORONTO

Goodbody a Co.
115 BROADWAY

.

DEPARTMENT

MEMBERS NEW YORK STOCK EXCHANGE

bridgeport

THE

Analysis

Teletype NY 1-2270

25

DEPARTMENT

BONDS & STOCKS

Executed On All

Canadian Exchanges At

Stock Exchange

Insurance Stocks

BOND

REQUEST

CANADIAN

SECURITIES

American

COMPANY

Bonds and Notes

CANADIAN

1832

New York

<§CidhlV€4t

;

Maintained

Dealers, Banks and Brokers

Members

THE

Bank and

/

Members New York Stock Exchange

Y.

To

IN

BOOKLET

HARRIS, UPHAM & C°
120

Net Active Markets

First

Public Housing Agency

ARE NOW AVAILABLE *
ON

members

DEPARTMENT

,

REVIEW"

BANK

FIRST

and Accounting

"ATOMIC ENERGY

CHEMICAL
CORN EXCHANGE

REMEMBER

32

COPIES OF OUR

BONDS

Stocks

HAnover 2-3700
Copies

TO

page

investors in cor¬

m

STATE and MUNICIPAL

of

expect

we

Aircraft

the

30 BROAD

on

and

Securities

BOND

the

Session of the 35th Annual Meeting of the American Petrol¬
San Francisco, Cal., Nov. 15, 1955.
j

in

telephone:

to

industry, the

Institute,

securities are afforded a complete picture of issues now registered with
potential undertakings in our "Securities in Registration" Section, starting on

U. S. Government,
State and

addition

In

30's.

30

porate

DEALERS

of

"

by Mr. Hoadley at the 35th Annual Meeting of the
Petroleum Institute, San Francisco, Cal., Nov. 16, 1955.

REGISTRATION

,

of the East Texas oil field.

address

American

F. Terry

petroleum industry suffered a double blow during

depression

♦An

28

page

/

companies faced the impact of the rapid development
This field was discovered in

oil

that comparable largesse to the farmers
Continued

industry,

worldwide economic collapse affecting all

now

Continued
♦An

higher order
the

Stabilization of the Industry
The

chance you don't like
what's immediately ahead—just show a little patience,
common

the

accorded

1960's.

say to visitors
don't like our weather —

business

in
the

credit

I shall attempt, first,
of the developments

led to

Chicagoans often

"if you

—

little further
assuredly during
a

decade of the

the

solve

world would

example, is widely tempered by

growth

some

have

particularly the oil and natural-gas
producing
business; then, to
de¬
scribe
how
we,
in
one
of
the
country's petroleum banks, appraise
petroleum financing" problems;'^and
Lyon
finally,
to
consider
the
growth
prospects of the industry and the
future financing which this will require.

than at any previous time. Any
about general business de¬

•"terrific""

review

of

concern

the

leaders.

other

and

growth outlook for the econ¬

for

great

shown

controls, inter-company co¬
operation, and advances in petroleum
engineering, the industry has at¬
tained a
high degree of stability,
which
has
greatly
improved
its
credit rating in the eyes of bankers

which

omy

has

industry

since the depression of the early 30's. By years
effort in the establishment of state pro¬

concerted

to

range

petroleum

v

duction

impressive /rates.

very

of Mr. Bowles' political confreres seem to

suppose

of

fact, there is convincing evidence
that there is greater con¬
fidence today regarding the longer-

problems otherwise insoluble—very much as so
many

days

progress

to suggest

stroke of genius,

a

provide the required funds,
American

The

,

\

be derived from borrowings from commerThese,, he says, have ample resources to

may

¬

In

and that its effect was
magical. He appears to forget about France and
Italy, neither of which has blossomed like the
rose despite the unprecedented generosity of Mr.
Bowles-' political party. His is the all too com¬
mon
assumption that the magic of this scheme
of Secretary of State Marshall (if the idea really
was his) is
beyond all cavil, and that similar ac¬
was

these

turn

we

growing at

are

to think that the Marshall Plan

seems

year*

this word "growth" and properly

upon

balanced

a

are

because it appears necessary
Mr. Bowles

—

to deal with

find it difficult

We

Everywhere

and

more

or

cial banks.

stantial reduction of income tax;

hundreds of billions, into Asia, Africa and

even

Latin

through next

,

production loans in the industry have bees
gradually extended from one year to ten years. Predicts |
capital expenditures by the petroleum industry may ex- ;
ceed $9 billion yearly by 1965, of which about $1 billiou

Looks for: >(1) a> fairly sub
(2) an expanded farm
support program;
(3) moderately increased defense
expenditures; (4) more highways and public works, and
(5) prompt action in monetary and credit field at first
sign of economic distress.

general idea appears to be that we should
proceed to pour billions, perhaps tens or

improved financial status

producers since the early 1930's, with the

result that

Hoadley cautions against business relying on longgrowth to solve short-run problems, and points out,

moderately optimistic, certain economic developments
point to a coming crest. Discusses the inventory situa¬
tion, and holds inventory accumulation wilt continue

included in the program

and

of oil and gas

though the standard forecast for business in 1956 is

virtually all that part of the

not

was

Mr. Terry calls attention to the

Treasurer, Armstrong Cork Company

run

long plea in the New York "Times" for
world

Vice-President, Chase Manhattan Bank, New York City

By WALTER E. HOADLEY, JR.*

balanced budget."

sentence Chester Bowles concludes

shall Plan to cover

?

By LYON F. TERRY*

by future historians that in

the second decade after World War II freedom

With this

Petroleum Financing

1 NORTH

LA SALLE ST.

CHICAGO

I

Q> RP OKATIOTl

IRA HAUPT & CO.
Members New York

111
40 Exchange Place,
Teletype NY 1-702-3

New York 5, N.Y.
WHItehall 4-8161

Stock Exchange

and other Principal Exchanges

Broadway, N. Y. 6

WOrth 4-6000
Boston

Teletype NY 1-2708

Telephone:

Enterprise 1820

2

The Commercial and Financial Chronicle

(2306)

.

.

.

Thursday, December 1,
1955
\7

Next

The

Time You

Looking for

This

participate and give their

Why Not Try Us?

reasons

for favoring

Their Selections

Hawaiian Telephone

(The articles contained in this forum

they to be regarded,

are

as an

offer

intended

not

are

be,

to

nor

Finlay

sell the securities discussed.)

to

Ross & Company
than

400

Over-the-Counter Se¬

Member of Honolulu Stock Exchange

orders

will

be

promptly

Telephone Company

In the midst of the "Crossroads

executed and your inquiries

of the

instantly answered.

Pacific" where

West,

we

with

considerable

,

t i

New York Hanseatic

1.

a

have

utility

1920

120

Member

Stock

term

5

Teletype NY 1-40
CHICAGO

BOSTON

SAN

PHILADELPHIA

FRANCISCO

H

Wires

to

„

growth

poten-

Principal Cities

island

speeding

a n

The

is

Specialists in

the Mutual

Rights & Scrip
Since 1917a

Aug.

finally

and

former

Feb.

on

1,

1954

changed its corporate name
to Hawaiian Telephone Company,
It

furnishes

telephone service

on

the six

ffipONNELL & fO.
Members

York

New

American

120

Stock

Exchange

Stock

Exchange

BROADWAY, NEW YORK 5
TEL. REctor

2-7815

and

of

has

Its

revenue

annually is in

major islands of the Territory of Hawaii, with radio tele-

of

business

attention

to

Southwest
d

Gas

Residential

and

n

Co.

in

producer

of natural gas,
also
operates

the

service

and

American

Telegraph

record

refinery
the

Bassett Furniture Industries

Camp Manufacturing
Commonwealth Natural Gas
Life Insurance Co. of Va.

8TRADER,TAYLOR & CO.,Inc.
Lynchburg, Va.
LD 39

TWX LY 77

$1

oline,

commer-

kero¬

sene,

cial construction during the post-.
war years has been record break-*
ing. The building boom has been
concentrated in Honolulu and

and

tural

PLACEMENT

large blocks of

LOW-PRICED OIL, TITANIUM
& URANIUM

ISSUES

The

l.

no-ton

has

future.

In

?s in"™ Ph°nef 7*1*
with

Telephone
Company, plans

Telegraph

tween

telephone

California

and

VanCG

and

conjunction

American

for

a

Dec.

31,

1954

the

ratios

are

Hawaii

Funded

Stock, 15.91%; Common Stock

Debt,

46.12%;

Surplus,

37.97%.

ment

plant

telephone

cable

and will carry up

to

Hawaii

to 36 telephone

simultaneously; it is

messages

ex-

in

times what it
1945.

From

statement,
common

recent

a

statement

to

stock-

Total

was

the

recent

average

share for

three

over

at

was
a

and

end

earnings
the

12

per

months

$1-30

vs.

the specific amount of investment

year;

this compares with average

this

earnings

de-

10

as

in

yet been

is

Qn

years

$1.04

per

for

interest

Telephone

top 10 in the

"CO,
cJ<
ZERO court street, boston 9, mas!

($10

par

(an in-

value) outstanding owned by

over

common

6,000

shares

stockholders.

Telephone Richmond 2-2530
Teletype BS-630




companies

an

The

cents.

United

more

States.

com-

long been noted for its

progressive

and

forward-looking

management; the dial system
introduced
1910.

oneered

in

Honolulu

Further, the
in

telephony.

past

"65

independent'telephone

as

the

to note

quarterly dividend

pany has

for

previous

of 86 cents.

than 5,000

the

.

the

share

in

ro

A

Continuing Interest in

Continental Telephone Co.
Grinnell Corp.

Kalamazoo Vegetable
Parchment

Keyes Fibre Co.

the

Its

as

was

early

company pi-

field

indicated

$18,
pany

At

annual

the

is

has had

an

5%.

years

by

energy derived from

15%,

39

and

current

traded

interisland

radio-

market

on

in

from

Pratt Read Co. Common

Samuel K. Phillips & Co.
Phila-Bdlt.

Stock

Exchange

N.Y. Phone

Teletype

COrtlandt 7-6814

PH 375

from

coal fell

oil-increased

natural

gas

^d^s
across

-ately

the

by

by

thereafter,

lines.

the

Immedi-

FPC

froze

Over-the-Counter

p.rices at the well-head,
The Harris Bill exempting

in-

of

90

from" FPC regulatio^5 w^ln tro-

price

of

duced in late 1955. This bill
passed
the House of Representatives with

com-

a comfortable

divi-

the Hono-

the

New

majority and

this

coming

York, San Fran-

to gain in three

ways

,

Continued

for 42 Years

pass

January,

National Quotation Bureau

stand

Incorporated
Established 1913

from such

proposed legislation for,
.

Quotation Services

repu-

sources feel that it will

Tiie independent producers

Over-the-Counter

saving^

77hP mo7s
state

.

Exchange and is also

cisco and Los Angeles.

Huntington Hall Apts.
Cambridge BIdg. 4s, 1963

in June, 1954, whereby the Fed-

the Senate

radio-

4s, 1990
Pocono Hotels Units

era* P°w.ef Commission has the
responsibility to regulate the sale

The stock is listed
Stock

John B. Stetson Pfd.

Public Service Coordinated ;

An ^krupt ^a]^ t° .this

table

lulu

%

PH 30

the

rate

unbroken

! ATT Teletype

Phila.-LO 8-0900

natural

cents

The

NY-CO 7-1202

growth was brought about bv the
ruling of thp U. S. Supreme Court

dend record for the past 47
years,
on

1941-1953,

§r0wth and demand for

22 V2

recent

the yield

of

telephone system, put into service

The

is

'

In

1914

Pennsylvania BIdg., Philadelphia

Industry and
Legislation

the

\

-

Established

Telenhones:

Members

The Natural Gas

were

'

■

.

„

Hawaiian Telephone has
1,202,-

of further

dependent company) ranks among
the

KELLER BROTHERS

Investment Bankers

of

period ending Oct. 31, 1955

Telephone

^Louisiana,'"n

FieW

additional wells,

earnings' The

stated that

Hawaiian

Knolles

invest-

'

ident of the company,

that Hawaiian

New Offices

&

Broadway,N.Y.6 GOrtlandt 7-5680

weps

Preferred

holders, Mr. J. B. Atherton, Pres-

It

our

1897

Office Tokyo—70 Branches

Brokers

111

ZffirZVactte?M

were:

be-

cable

termined.

visit

Co., Ltd.

Established
Home

'pro-

controls

company s which it owns full interest in 24,
On wells and a joint interest in eight

being completed. This will be the

project had not

When in Boston

Yamaichi

in

^ fg fn£^the vicinity Ths gas
StS pM. with*tSe result

capitalization is conservative.

1929

Tel. Hanover 2-4850

write

or

Securities

yjytiuallv leasing all the outout of

ad"

by

37 Wall St., N. Y.

knowledge

adroitly

succeeded

conti-vtne. n°t too distant fature, mdus-

In

ESTABLISHED

appeal

vision-

management
charies

or

pected to be in operation by 1958.

^TeenecmiCompatu^

with

Call

de¬

gas

rivatives.

suburbs on the Island of Oahu
and has been the result of rising
living standards and the pressing
need for more accommodations
or the ever increasing number of

first

of

investors

with

BOENNING & CO.

transpacific
or

unusual

investors

of Japanese potential.

na¬

timate goal. For example, Standrr^ie company has contracts for
arc^ Oil of California is planning U*e sa\e
its natural gas with
Island of Oahu.
Its service area
to erect a $30 million refinery on the
Pipe llne companies, mcomprises 6,318 square miles with Sand Island, gateway to Honolulu eluding Texas Eastern Transmisan
estimated civilian population
m0n' Texas Gas Transmission,
of 500 976 on July 1
1955.
These developments have con- Tennessee Gas Transmission and
Hawaiian Telephone
Company tributed to Hawaiian Telephone's Transcontinental Gas Pipe Line
has faced successfully
a
record growth and are expected to sus- QpyPp^tipn.
The company has
demand
for
telephone installa- tain this growth trend in the fu- become well^ entrenched in the
tions in the postwar period and at ture. The following brief statisti- aleas where it operates.
For exthe same time has kept abreast ca^ resume illustrates the growth 3mple, it now has a 20-year conof the improvements in modern
of the past 10 years. Gross oper- trqct with Texas Eastern Transtelephone service. Conversion of ating revenues, excluding non- mission
( Big Inch and Little
remaining exchanges to dial serv- utility, increased 225%; net in- tnch lines) calling for an average
ice is nearly complete, and fur- come rose
329%; number of tele- delivery of 62-million cubic feet

the

ACCUMULATION

have

may

to

propane

other

approximately 80% are located in
the City and County of Honolulu,

the

Exceptional facilities for the

branch offices

SECURITIES

extraction

Trading Interest In

American Furniture

our

for

of butane, gas¬

and

the

in

to

JAPANESE

com-

Telephone

System

wires

modernized

a

"
s,u *l ,m'
?n d ollar jj,at d now jias an elaborate gathhotel and shopping district projering system> consisting of 14£
munication service by radiotele- ects in Waikiki have been comu
f
hich 62 are owned and
type between the islands, pleted or are being planned by
th
balance are under purchase
Through the facilities of RCA Matson Navigation Company,
Communications, it connects with Henry J. Kaiser, Murchison and
companv owns

phone

Direct

Pro-

g

independ¬

ent

and

of

i

u c

This company,

trans¬

excess

Mobile, Ala.

Exchange

seeking a natural
equity with a huge growth
potential, we would like to direct

is

sugar

1-1557

For investors

principal

are

NY

gas

her

shown progress

Exchange

.

greatly

Hawaii

!

years.

volume

billion.

the

of

laws

Kingdom of Hawaii, the company,
through mergers in the 20s, absorbed the outer island telephone
systems

of

acted

1883

the

.

an

Total
Finlay Ross

on

16,

under

x

pineapple production, the tourist
trade, and military expenditures.

Telephone

Company

from

Stock

Stock

Southwest Gas Producing Co., Inc.

enabling the
dial outer

direct

York

NewOrleans,La.-Birmingham,Ala

Angeles, Calif.

interisland telephone

up

postwar

sources

Best."

Incorporated
as

w

to

thereby

economy

sound

the

Security

Like

I

Los

& Co.,

Member Los Angeles Stock

communications.

choice for

my

numbers

switchboard,

American

HAnover 2-0700

Also, in 1948, the
first to institute di-

service,

New

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

CHARLES L. IIOLTON

President, Holton, Hull

megacycles.

operator

Steiner, Rouse & Co
Members

water hauls. The interisland system now operates between 70 and;

interisland

3 t

Members

frequencies

higher than 5-8 megacycles would
not be usable for such long over-

Honolulu

growth,

Company

that

felt

old—Quoted

L.

geles, Calif. (Page 2).

recti radiotelephone dialing for its

of

i i

been

company was

long-

w a

a

had

B ought—S

Prior to this time,

megacycles.

100

Telephone

"The
Private

telephone utility

a

with

further

Exchange

Broadway, New York

WOrth 4-2300

meets

Com¬

promise
Associate
American

East

bining the
stability of a

Corporation
Established

it

Co.,

Holton, President,
Hull & Co., Los An¬

Holton,

J93* originally operated in the
40

Hawaiian

-Charles

in

Kauai

and

Maui

&

Southwest Gas Producing Co., Inc.

Very High Frequency range of 30-

Honolulu, Hawaii

curities.

Your

of

Hawaii,

Ross

—

•

between Honolulu and the islands

more

of

Ross,

Company

Honolulu, Hawaii (Page 2).

FINLAY ROSS

Markets in

tains Primary

Louisiana Securities

particular security*

a

Trading Department main¬

Our

Week's

Participants and

Forum

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

Market

a

Security I Like Best

are

in addi-

46 Front Street
CHICAGO

on

page

15

New York
SAN

4, N. Y.

FRANCISCO

Number 5486

192

Volume

.

.

.

The Commercial and
Financial Chronicle

(2307)

Income Tax Pointers

Securities

on

'

By J. S. SEIDMAN

•

r

1 j

'

INDEX

v

Articles and News

Seidman

& Seidman, New
York City
Certified Public Accountants

how to watch the "six-mcntli-Iine"

i spacing between

to

Economic Developments Point to
—Walter E.

(1) the

are:
are

treated;

tax

Petroleum

j

(3)

taxes;
treated;,(6) how to convert dividends and interest into
capital
gains; (7) how to idsntify securities sold; (8) how commis¬
sions and other expenses .are treated, and
(9) how to time
rs
your year-end sales.

^

to*91%T~B-itt- with

go

Canada:

Sam's

m

a, x

take

i-

Losses Are

If the net results

(>

is

the

show

big

When
S.

Seidman

3

_

it

comes

to

obsoletes—-our
talk

4

Economic

Prospects

and

Its

is

our

plain,

prices fancy.

See

5

Railway

Gordon

Problems
6

What Might Be Expected in
1956 Business—Walter E. Heller_

6

us

today!

Obsolete Securities
Dept.
09

^

WALL STREET, NEW
YORK

9

Principles

of

Federal

Reserve's

Monetary and Credit

Policy—Edward E. Edwards

■•

Treated,

of the under-';

PLAIN & FANCY

Cover

Securities—J.

on

Insurance Stocks—Roger W. Babson__

six-month basket and the over-25%/--Hence, six-month- basket taken
together,V
mum

Cover

Terry

♦

Its

—Donald

Basic
How

Uncle

F.

Double Entry Into
Building—Ira U. Cobleigh

capital

a

gain,

Crest Ahead

a

Business Prospects: The View
from Detroit—L. L. Colbert

"Capital-gain" is "a magic word reported, the tax on those
profits
jn Federal income-taxes. The rea¬ for people in the 20% bracket is
son is simple. Individual tax rates
only 10%.
can

Industry—Lyon

Income Tax Pointers

save

taxes; (4) how
(5) how dividends are

years, saves

Page

Hoadley, Jr

.Among the "pointers, given by Mr. Seidman
treatment of capital gains; (2) how losses

3

L.

Colean.

Picture

BASIC

.

;

WHitehall 4-6551

Promising Growth

A

11

S The Mortgage Market: Today and
Tomorrow.
x.—Miles

Telephone:

12

push
doss, then regardless of-.:
t A Greater Period of Prosperity
Ahead—Harry A. Bullis______ 13
for--capital, what basket it. comes., from-nher
loss "is
r' gainsi
;
,7''
The Year 1956 Will Bear Close
deductible, within certain
Watching—H. E. Luedicke____ 14
What is a limits.
a

is

.

'r> capital" gain?
if %

W *

_t,By4 and large,

-

,

4|»;

is 4he profit

it

:

the sale of

on.

Va

n

t h Pn g

y

other than the

['merchandise
of
J. S.

business.

a

A common

Seidman
"

••

ample

ex-

of

a

capital gain is the profit made by
investor

an

the

on

bonds;

and

sale

of

stocks

Everything here

will

accordingly be described in terms
of securities, but what is said will
also apply to

commodities, foreign

exchange, real estate, etc.
The

rules

vestor"
rules

security "in¬
differenL.-from the

those" who

all trades for'1955 is

other

in/the

$9,000

six-month
years

do

enough

there

are

for individuals.

ual

investor

from

those

Only the individ¬

will

be

considered

to

done

about

the

other

only,

As this rule about

losses

for

effect

carrying for¬

five

for

has

years

if

that

not

losses

some

time, it

previously

profits.

fur

as

be used in

can

back

1955

as

returns,
by

go

the
are

viding" line. Profits
securities held for

is

and

the di¬

losses

on

than

six

are

always figured in full
or

on

that $1,000 will be

However, if he then takes
loss

a

$910..
$1,000

on

months

into the second basket.

go

Each basket is taxed
differently.
If there is a net
profit in one bas¬
ket and a net loss in the

other,

the two

are

netted. If this leaves

a

net profit in the under-six-month

basket, the profit is reportable in
full in the regular
way. If it leaves
a

net profit in the over-six-month

basket, there is

two-way play,

a

whichever

(1)
or

a

gives the lower tax:
flat tax of 25% of the profit

(2) reporting half the profit in

the regular
way.

The
comes

with

25%

limit

on

meaningful

the

to

tax

be¬

individuals

than $16,000 income.
figure becomes $32,000 if
husband and wife are involved
more

That
and

they file

combined return.

a

People with lower incomes pay
less than a 25% over-all tax. As
the lowest
regular tax rate is 20%,
and

only half

the

over-six-month

profits in

basket

How

Watching

Six-Month

the

There

is

an

obvious

Basic

Regular Features

As

We

See It

(Editorial)

Cover

Business

Man's

Bookshelf.,

'

of

mum

Nashville

•

20% to 91%.
line

also

loss until

the

after

the

20

line

must

it against the $2,000
profits. That
him with
the
$2,000 of

been

passed,

he

apply

over-six-month

of

leaves

Request.
I

k

We maintain
trading markets in

more

10

than

Indications of Current Business Activity

37

Mutual Funds

45

NSTA Notes

10

250

over-the-counter securities

News About Banks and Bankers.;

40 Exchange Pl„ N. Y.
Teletype NY 1-1825 & 1-4844

22

Observations—A.

Wilfred

Our

Reporter

Governments

Reporter's

on

May

Public

Philadelphia

to

* Los

Angeles

24

Railroad Securities

in

Chicago

46

Securities

Securities Now

*

26

Report

Utility

Direct Jf ires

5

30

Registration

Lithium Corp. of
America

38
•

•

.

Prospective Security Offerings

Security

Salesman's

43

Corner

Reeves-Ely Laboratories

The Market

.

.

.

and

27

You—By Wallace Streete

The Security I Like Best
The

State

of Trade

Vitro Corp.

16

Federal Uranium of

2

j

and Industry..

Nevada

4

under-six-month profits to report.

Continued

on

page

26

Washington and You

Twice

Weekly

COMMERCIAL

1

and

Drapers' Gardens, London,
land, c/o Edwards & Smith.

Park Place,

HERBERT

D.

WILLIAM

Reentered

COMPANY, Publishers

DANA

New York

2-9570

to

7, N.

TELETYPE N. Y. 1-5

Chicago

Schenectady

•

•

Glens Falls

Worcester

and

Other

Chicago

city

news,

Offices:

3,

111.

135

etc.).

Union,

Dominion

Canada,

Other

of

Countries,

La

STate

Salle

St.,
2-0613);

Rates

$55.00

$62.00

per

$58.00
per

year;

per

W!« V. FRANKEL & CO.
INCORPORATED

S.
of

in

39

BROADWAY, NEW YORK 6

year.

WHitehall 3-3960

year.

Teletype NY
Other
Bank

and

Note—On
rate

of

Record

—

Monthly,

(Foreign postage extra.)

account

of

exchange,

the

made

in

New

York

Direct

Wires

&

4041

PHILADELPHIA

to

DENVER

fluctuations In

remittances

for for¬

eign subscriptions and advertisements must
be

1-4040

Publications

Quotation

$37.00 per year.

the

South

(Telephone

Sulphur

Febru¬

Subscriptions in United States,
U.
Possessions, Territories and Members
Pan-American

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

second-class matter

as

Subscription

SEIBERT, President

Gulf

Eng¬

Y.

Thursday, December 1, 1955

ST., NEW YORK 4, N. Y.

C.

ary 25,
1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.

9576

SEIBERT, Editor & Publisher
DANA

E.

Sulphur

Copyright 1955 by William B. Dana
Company

CHRONICLE

Reg. U. S. Patent Office
B.

Pan American

48

Exchange

*

'

Singer, Bean
&Mackie,inc.

six-

month

has

Request.

on
'

j

needs

watching on losses, to make sure
they
offset the heaviest taxed
profits.
For
example,
suppose
Jones
has
$2,000 of under-sixmonth profits and 2,000 of oversix-month profits. He also has an
open
loss of $2,000
on
newly
bought securities. If he waits to
take

on

**Prospectus

From Washington Ahead of the News—Carlisle
Bargeron

WILLIAM




*Circular

Einzig: "British Credit Squeeze Ineffective"

25%. Before six months,

the range is from
The six-month

Broadcasting
CoastLeasehoIds,Inc.*

PacificUraniumMinesCo.*

8

FINANCIAL

•

Gulf

8

Dealer-Broker Investment Recommendations.

Club, Inc.**

Dumont

48

Coming Events in the Investment Field

PREFERRED STOCKS

Boston

:

Atomics, Inc.

The Diners*

27

Every

•

office in

City

Corpus Christi Refining Co.

,

Bank and Insurance Stocks

Our

holding. The tax rate then ranges
as little as
10% to a maxi¬

Members New York Stock

Albany

branch

Lake

HA 2-0270

advantage

from

be

HAnover 2-4300

to

33

in taking profits after a six-month

Spencer Trask &. Co.
TELEPHONE

wire

25

REctor

BROAD

York 4

Teletype: NY 1-4643

Salt

Editor)

25

25

DIgby 4-4970

25

Special Committee Urges Revision of NYSE Procedures

The

have specialized in

According to NAPA

Committee__

Broadway, New
Direct

Published

For many
years we

Spokane Stock Exchange

42

Line Saves Taxes

the

need

Members Salt Lake
City Stock Exch.

24

Frederick Shull Takes Issue With Robert de
Fremery on
Gold Standard (Letter to

over.

tax

securities, whether over or
(here
called
over-six- under six months, that will ex¬
month profits) go in one basket.' actly offset the $1,000
profit, and
Profits and losses
on
securities wipe out the $910 tax. In other,
held six months or less
(here words, the $1,000 loss has savedcalled
under-six-month
profits) Jones $910, or 91% in tax.
more

No Signs of Economic Soft
Spots,

'

J.F.Reilly & Co.,Inc.

23

Guaranty Trust Co. "Survey" Discusses the Real Test of
"Adequate" Housing

>

His tax

losses

18

:

*

(Letter to Editor)
;

..

owned. Six months

and

Governments,

absorbed

of two baskets, based on
length of time the securities

profits

one

*

request

J. Henry Landman Advocates
Averaging-Incentive Tax Plan

a

back¬

savings from losses can
run as high as 91%.
Suppose, for
example, Jones is in the 91%
bracket, and that in 1955 he takes
a
$1,000 under-six-month profit.

Security

*

on

,

1950

The

Profits

in

can

Circular

16

v,"

Business Survey

in

an"Tn§iirance Coriipany Viewpoint

Should 'We Trade With the
Communist
—J. Anthony Marcus

v

$4,000.

not

whether under-six-month
on

Gas Leases from

INC.

15

apply

ward.

ward

15

any year can be

forward

Losses

25% Rule Works

and

—Allen C. Steere

security profits
$1,000 can be taken

Security losses of

here.
How the

Oil

five

Nothing

means

different

under-'

the

Butler

Impact of Supplementary
Unemployment Benefit Plans
—Sumner-H. Slichter__
&rr__

The

as a regular deduction
from other
income in each of the five
years.
That absorbs $5,000.

or

are

the

-for

Inventories?—William F.

net

no

in those years,

be

What About Business

be de¬

against the first $9,000 of any net
security profits in those years. If

buying and selling to be

a "trader"
"dealer". The rules for corpo¬

goes "in

basket

^

can

return.

1956. to "'I960,

been

rations

1955

ATOMICS

■

net of

$10,000 loss.

a

Only $1,000 of this loss
ducted

;

.

illustrate: Suppose the

carried

for the

are

for

To

funds.

SALT LAKE

CITY

i

The Commercial and

4

Financial Chronicle

.

.

Thursday, December 1,
1955

.

(2308)

postwar decade and especially in

Business

the last few years.

Prospects—The
View from Detroit

As it looks to
is

3 million

about

looks
very good indeed, prominent auto executive holds there is no
end in sight to the tremendous needs of this country for the
goods we produce. Says auto industry is building this year
eight million cars, and this is not "a temporary phenomenon."

Asserting, from the Detroit point of view, the economy

In

undertake, in
tackle, no mat¬
ter how strong our personal in¬
terest may be, all of us are bound
problem

to

be

we

we

in

terest

decisions

have

we

already

things that
people
thought would
be impossible.
For one thing,
some

L.

L.

Colbert

badly
during the past year with a Re¬
publican
administration
and
a
Democratic Congress. We seem to
have

made

in

progress

finding

to guard the country against

ways

New

history

unemployment
is
lower than at any time in the past
two years. Whether you look at
the levels of income, both national
and personal, the amount of
money
people are spending on
goods and services, or the rate at
which goods are being produced,

and

as

consumers

as

demonstrating

new

a

and

see

tion.

of

without

infla¬

further

Since January, 1952—nearly
years—the purchasing value

four

the

two

dollar has

and

half

a

varied
cents!

by only
In

those

has

the

a

government should

of

1954,

moderate

there

when

declines.

And

were

even

in

address

metropolitan

of this size. Or
look at it this way.
In 1940 the
areas

those

use

by

Mr.) Colbert before a
of the National Press
Club, Washington, D. C., Nov. 10, 1955.
Meeting

markets.

those

We

greatly
increased rate of family formation
starting in 1960—and. in this age
the

of

see

a

automobile, each one of
is going to want a

those families

Many of them will want and

car.

be able to afford two

We

cars.

from

the

with

central
We

cities

know

dealers

our

into

from

that

this

relation
ness,

attitude

toward

to

the

of

we

government and busi¬
have less fear of violent

balance wheel of the nation's

eco¬

nomic machine and not the power

plant. And we look to business not
only to produce the goods and
perform the services the nation
also to

momentum

to

supply forward

the economy. I be¬

going to
go on being pretty happy about
our
system of private enterprise

long

as

are

private enterprise

tinues to supply the kind
mentum

it

has

of

in

supplied

con¬

We

that

and

more

the

in

from
real

and

talking with
estate

people
areas the

suburban

many

rapidly becom¬
ing the standard, and they tell us
that it is getting harder to sell
houses with
I stated in

one-car

a

As

garage.

by 1975 the

one-car

family will be in the minority and
that a large proportion of families
will be using three or more cars.
But these facts

only part of

are

the story. Listen to this. Fourteen

million

families

still

not

do

in

own

Two

out

of

have

not

yet

this

three

every

learned

to

Nearly six million

car.

the

World

road

War

We

drive

cars

a

now

before

estimate

that

in the years ahead the automobile
five

million

to

cars

build
every

four
year

to replace
those that are
scrapped. And we are going to be

CALIFORNIA

To

a

state

where
week

California with
where the

the

your

.

population

equivalent of

a

who

grows

town

about 400,000

7,500

.

strong
over

is

a

year

added

half

IIow

Here

to

a

17 billion

.

.

.

a

some

direct—or

growth?

of the stocks you can

The 8

Million

for

Bullock's Inc.

Plomb Tool Co.

Merrill Lyncii, Pierce, Fenner & Beane
70 PINE STREET

NEW YORK 5, N. Y.

Offices in 108 Cities

upon

both

year

of

The rise

Labor's

Bureau

of

Employment

weather conditions that reduced work in

verse

Security stated.

due to layoffs in seasonal industries and to ad¬

was

construction, lum¬
Initial

bering and other outdoor activities, the Bureau reported.
claims for state jobless pay

totaled 288,700 a year ago.
the total number of workers drawing

The bureau also reported

jobless

pay

benefits

by 21,600 to 813,400 in the week ended

rose

Nov. 12.

The steel

supply.

expansion

Producers

customers
to

are

for

expand,

program

is heaping

new

burdens

on

steel

in the delicate position of competing with

available

"The

states

steel,
Iron

with

and

Age,"

other in the

each

national

metalworking

weekly this week.
A growing number of small steel consumers are going to
Washington to complain about the shortage, writing letters and
making personal calls on their congressman, demanding that
"something be done."

Everybody agrees that more capacity is needed, but a lot of
people forget that it takes about 3,000,000 tons of steel to build
10,000,000 tons of new capacity, continues this trade journal.
Steel producers

themselves have been forced into barter deals

their

with

competitors to get special shapes made only by the
competitor and where trades cannot be made, the steel company's

contractors stand in line with other customers.

Meanwhile, steel

scrap

trouble

may

break out at any moment.

The pressure for higher scrap prices is terrific and steel conversion
deals constitute the latest fly in the ointment.
Some such deals
are tied in with
scrap and in such cases the principals inyolved

inclined to bid up the price.
There's no doubt that conversion arrangements

aie

They

would

be

more

numerous

and

involve

are

heavier

growing.
tonnages

except that most steel producers have a better balance between
ingot and finishing capacity than in previous shortage periods.
For this reason it's tougher to mesh the many complex details
that

enter into a conversion deal, declares this trade authority.
Despite the evidence that steel supply will continue tight into
third quarter of 1956, there are still some people who feel that
somehow or other things will ease up in the first or second quarter
of

next

year.

These

are
banking on cutbacks by automotive
But the automakers themselves are predicting another

consumers

producers.

good year for sales. So are all of the major consuming industries,
including appliances, farm equipment, railroads, oil and gas. The
aircraft industry is loaded to the hilt with orders.
consumers run

demand.
and

into trouble, there

are

one

or

more

other factors to

of the
bolster

These include the need for

rebuilding of steel inventories
hedging by most consumers against a possible
steel, concludes "The Iron Age."

the inevitable

strike in

The
new

sustained
and

used

look

living

to

get

As

phe¬

demand

still
for

tremendous

cars

this

automobiles

figured.

big market for new cars.
Entirely apart from the basic

demand for good

transportation in
rapidly growing country which

Continued

on

As of

in

very

page

20

wage

a

million auto industry employees failed
on contracts in which pay rates are

hike, based

geared to the cost of living.
tember

this

result, nearly

a

a

unfilled

country. We have been particu¬
larly impressed by the way used
car prices have held
steady in this

a

According to the United States Department of Labor the cost
was unchanged in mid-October from a month earlier.

of

is strong additional evidence

the

needs

Trading Department

of

Department

cars—

definitely do not
this as a temporary

Packard-Bell Co.

contact:

rose

by 43,800 to 230,200 in the week ended Nov. 19, the United States

indus¬

we

nomenon.

Security-First National Bank of Los Angeles

hiring by textile and apparel producers.

Initial claims for state unemployment insurance benefits

big

1955

try is building eight million

Bank of America N. T. & S. A.

Arden Farms Co.




increased

What is being overlooked is that even if
Cars in

unusual. But this year the
and

Kaiser Steel

Just

for the

cars

Only a few years ago we in the
automobile business thought a sixmillion car year was

Corp.
Pacific Power & Light Co.

More information?

buying

extremely

buy—from Merrill Lynch

through sellers we'll find:

American Trust Co.

be

enjoyable.

more

year,

billion annually.

share in that

are

Claims for unemployment insurance benefits dropped moder¬
ately with reductions reported in 27 states. Scattered layoffs in
the construction and leather processing industries were offset by

every

industry expands capacity

at

will

first time and those who will
buy
second or third cars to make life

investment dollars.

where wages and salaries run
farm income alone 2]/2 billion, and
.

working full time to supply the
increasing demand from people

West, Etc.

come

annual rate for the first time

adjusted

women

built

were

II.

country

automobile.

an

for

close to reaching the $400,000,000,000 seasonallyin history. In the third
quarter of this year, total output of goods and services soared to
an annual rate of $391,500,000,000 from
a $384,800,000,000 rate in
the previous quarter and $375,300,000,000 in the opening three
months of the year. During last year's final quarter gross national
product settled at $367,100,000,000 annual rate.
product will

Washington last spring

I believe that

just

to

would reach a new high
the full year 1955. This compares with
8360,500,000,000 gross national product registered last year and
$364,500,000,000 in record 1953.
"
By rising "sizably" in the fourth quarter, the gross national
$387,000,000,000

the

two-car garage is

-on

mo¬

know

predicted "a further sizable ad¬

estimated gross national product

It

of

talking

people when they come in
buy a new car are deciding to
keep their old one as, a second
builders

Board

Reserve

than earlier."

car.

With

eye

Federal

a

However, while the total output of goods and services con¬
on the upswing, the Board also noted
that price advances
since the middle of the year "have been a more important factor

the other.

an

industry will have

M,
laybe

increased demand

tinues

race

with

to

Go

an

production during the current quarter
to push 1955's total some 7% above last year.

see

already established families mov¬
ing in a never ending wave out
suburbs.

The

to

as
*An

Luncheon

1954 with

for copper.

more

reductions

gone

excep¬

Total

above that of the similar week in

stimulating both consumption and
investment, rather than the one or

tax

lieve most Americans

steadily, with the

experienced some slight curtailment in
the period ended on Wednesday of last week
production, however, was maintained at a point considerably

their

needs but

four years the national pro¬
duction and national income have

tion

gain in the population of the

country is enough to populate two

today that the government decades more Americans than
basic responsibilities were alive when Taft was elected
toward the economy.
We agree, president in 1908!
Facts like these are meat and
for instance, that the government
should keep careful watch on our drink to those of us who spend a
economic trends and not wait un¬ good
part of our time looking
at
our
til a serious situation develops be¬ ahead
potential markets
and
fore calling for corrective treat¬
planning
new
productive
ment.
We agree that the govern¬ capacity to meet the demands of

same

up

-

certain

records

new

sustained

net

pro¬

have

—

being set economic shakeouts and both busi¬
every week. The most impressive nessmen and their customers have
thing about the prosperity of the increased confidence in the future.
last few years is that it has been We look upon government as a
you

are
about: a million and a half
people. Every twelve months the

Confidence in the Future

Americans-—both

ment

without

industries

Several

industrial output in

population. In Washington, D. C.
and the surrounding suburbs there

responsibility
for
endangering
individual
rights
and
liberties. framing and executing sound and
Considerable headway1 has been flexible monetary policies and an
made toward relaxing the tensions
obligation to assist in the building
between east and west. And the of public assets such as good roads.
And in keeping with the Eisen¬
economy has become stronger
hower spirit of looking first at the
than ever.
From the Detroit point of view good of the whole nation rather
the economy looks very good in¬ than at the benefit of one segment
deed.
More people are working or another, we agree Uhat when¬
than at any time in .the nation's ever tax reductions are feasible,
subversion

i

rise.

has

haven't

i

vance" in the nation's total

agree

done too

'

Here is another way to look at
the present rate of growth in our

population of the country was 132
watching the country grow and million. If the estimate of 228 mil¬
helping it grow, we have gained lion in 1975 is right, it means that
in the 35 years between 1940 and
a more mature knowledge of what
it takes to encourage an incentive
1975, our country will have grown
economy to
keep driving ahead by nearly 96 million people. In
other words, we will add to our
under its own steam.
I believe most Americans would
population in three and a half

accomplished

we

now

in

this

awareness

The Census Bureau

estimates that twenty years from
now the population of this coun¬

confi¬
dence in the country and its fu¬
ture. And out of our experience

actions.

our

With

when the youngsters
early forties start get¬
married and raising their

families.

personal income and the
expenditures of the
American
people
continued
to

been

and

Industry

years

personal

We

our

and

year—and only

a

Index

Auto Production

that,

ting

1954 the

ducers

the public in¬

Food Price

Business Failures

try may be 228 million.

before of

ever

short

Commodity Price Index

The supply of copper showed some shrinkage and
slight cut in aluminum inventories was also noted.

A

than

few

than

more

aware

State of Trade

tre¬
for

born in the

level of investment in plant and equipment as
of the most powerful stimulants for the economy.

everything

the

to

Retail Trade

from now it is
going to start growing a lot faster
a

Stresses high

every

sight

Output

Carloadings

the goods we produce. Our popu¬
lation is growing at the rate of

President, Chrysler Corporation

one

in

end

no

Production

Electric

in Detroit there

us

mendous needs of this country

By L. L. COLBERT*

Steel

The

The Population Growth

on

mid-October, the index bobbed at its 114.9 rate of Sep¬
the 1947-49 base of

100, the Bureau of Labor Statistics
a year earlier and the recqrd

This compared with 114.5

level of 115.4 reached in

October, 1953.

prices followed their usual seasonal pattern by declining
between mid-September and mid-October.
But higher costs l'or
Food

transportation, housing and medical and personal care offset this
drop, the figures showed.
The October stability in living costs, coupled with fatter-thanever

pay

envelopes, gave the nation's factory workers more

Continued

on

buying

page

36

Number 5486

Volume 182

.

.

The

.

Commercial

and Financial
Chronicle

(2309)

v

A

humor in Wall
Street

more

now becomes
well
of
a
new
revised edition of Fred
of 15 years ago,
(WHERE ARE THE
CUSTOM¬
ERS' YACHTS? or A Good Hard
Look at Wall
Street, Bull Mar¬
ket Edition, by. FRED
SCHWED, JR. Illus¬
trated by Peter Arno, Simon &

with

Schwed's

the

Schuster, N.

215 PP. $2.95).

Street gag,

from

comes

Y.

this

naive visitor

to

inquire, "But

the

of

meres

In

the

of

course

perhaps end

as

highlighting

the

this

era's

May

same

time

well

is the

recording of

sophisticated investor.
At

the

good

logic.

listed

are

rendering
realism of

The

suggests

"buy them when they
insists

on

that

are up,

it."

the

Stock

(5) both will, in 1955,
the
largest
sales
in

up

premised,

The

uie

this
to

Company

joint

un-

brush,

admitted

an

the

trend-followers' real credo is:
and sell them when the margin clerk

We

ular

to

Company—sort

of working from
Further, Ruberoid
larger company,
a
fact
which might reasonably
account
for
discussing it first.
It's quite a company with a well

the

small, passionately bound
sect of Chart
Readers, including their growingly used technical
jargon as "head and shoulders
information," "double tops," "break¬
away gaps," and the like.

In

his

treatment

of

regulation

and

tain

reform

repeatedly berates the SEC for its
flamboyancy.
Commission to model its general
to that of

the

Mr.

He

Schwed

wants

of

patient, with

another.

It

would

be

ridiculous

a

basic

to

murder

patient, the public, instead of keeping it alive for
can always be
kept below a total cure.

The patient

a

one's

which

present

policy

transaction,

and

vice

he

versa,

Rarely will

you

$3.20.
earning

the

fact

as

"Board-Room
answers,

*T dont know."
Who Are "They"?

The

Street's

"they," usually

proclivity to refer to a mystical
a tipping bulwark, he questions as

as

ism in view of the

extinction-via-SEC

lliat-be of the tape.
any great
pronoun

"For the

speculators

or

of

the

last ten years

It

must

anachron¬

legendary

powers-

there haven't been

manipulators at all.

'they' continues unabated.

all-powerful
an

But the

be the

of the

use

these

demons

days, exclusively."
Our
of

humorist

does

defining investment

ing to

the

troubled

different things.
seem

quite

proviso that

He

not

and

duck

speculation.

adolescent
senses

different

that

that

ever-nettlesome

question

This he likens to explain¬

Love

and

Passion

that they are different, but they don't

enough

to

ease

his

problems.

After

investment-and-speculation have been defined

so

the

often

nnd

so

«nd

that the science of economics
having reached a point where

badly that another faulty explanation should do

further confusion is impossible, Mr. Schwed offers his
nition

as

follows:

harm,

no

own

defi¬

'

paper,

sales

section

slice

with

due

of the

volume, and the
for

accounts

the

remaining 40%,

allowance

lines

for

of

paints and lacquers, gypsum wallboard and lath.
To the 20 plants

running from Hyde Park, Vt., to
Salt Lake City, Utah, and from
Dallas to Minneapolis, there has
been added, within recent weeks,
the
properties
of
Lucky
Star
Roofing Products Corp., and
Lucky Star Land and Improve¬
ment
Co.,
Colorado
firms.
Ruberoid
is
increasing its em¬
phasis
on
gypsum,
having ac¬
quired,
early this
year,
about
4,000- acres
of gypsum
bearing

current

stock

a

scarcely

of

a

little later
With

1949,

$4.42,

coated

years,

stock

dividends

2-for-l

a

—

dends

for

have

the

with

past

the

$6,236,805 of debt

common.

been

19

share

divisions,
re¬
34V2) MNC
eight times
so
that investors are
pay
no
fancy market

counted

above.

sells

less

at

earnings,

Corporation

Cash divi¬

faithfully paid
years,
together

to

At

than

premium for entry here.
These two
companies, impor¬
tantly related to building con¬

Our second

entry, Masonite, has
contending with a pleasing
problem. Although running at full

struction, have
similarity and

blast

capacity,
it
simply can't
keep up with its orders. Masonite
is the largest American producer
of hardboard, accounting for ap¬
proximately 75% of total domestic
output.
While delivering above

no

fault in

of

elements of
hope you find

many
we

them.

bracket treatment

our

Curiously, Masonite is
selling near its high for the year,
while
of

Ruberoid

points

is

away

only
from

couple
its
low.

a

in¬

Neither of these market relation¬

dustry use, Masonite "Prestwood"
is extensively used in the manu¬

ships appears, however, to be too
significant a fact in evaluating
these equities. Both issues should

of

TV

Production
wood

fibers

and

radio

be
of

hardboard

of

from

stems

plants; the principal
Miss.,

one

accounting for

sales;

a

cabinets

60%

about

plant at Ukiah, Calif.,

30%; and the Marsh Wall Prod¬
ucts,

Inc.

(an

almost

wholly-

•

horizontal,

these

analysis,

stock

techniques
appears

of

THE

APPOINTMENT

AS

OF

POWELL

VINCENT A.
MANAGER

the
single exception of
annual
net
sales
have

TRADING

OF THE

DEPARTMENT

/

marched majestically ahead from

in

1945

to

close

to

$80 million this year; and in the

past nine years the predepreciation profit margin has averaged
about
.

F. H. Crerie &
19

16%.

RECTOR

NEW

Balance sheet strength has been

Co., Inc.

STREET

YORK 6.

N. Y.

.

Speculation
money into

a

is

ejjort, probably unsuccessful, to turn

a

little

lot.

Investment is
o

an

marvellously
afteil

an

effort, which should be successful, to prevent

lot of
money from becoming a little.




year,

maintained,

with

a

averaging above

10

last

Of

five

years.

year

current
to

1

the

Tel.—BOwling

Green

9-5944

Bell Tele—NY

1-4683

ratio

for

the

current

direct

wire

to

crerie

&

buyer,

security

inflated.

PLEASED TO ANNOUNCE'

WE ARE

I

of

values, neither of which, by

minority interest outstanding)

a

type

suggest further exploration of

we

standard

subsidiary with but

histories,

particular quotations of the mo¬
ment.
To the longer range," or

3%

owned

their

on

managements,
and
their
traditionally kind treatment of
stockholders,
rather than
their

three

at Laurel,

considered

their

from

on.

$30.7 million

and

sizable advance from

a

ahead of the

sus¬

of sales for construction

various

and

and there is but

been

50%

board

split in 1936 and another in 1950,
plus 2% in stock this year. Bal¬
ance
sheet position is excellent

ignored.

be

products

new

the 1,377,563 shares of common

asked
Masonite

of

accounting year. Indicated divi¬
dend is $1.50 and there is a history

tained forward motion of Ruberoid

should

number

the $2.67 reported in the previous

yield

the

timbers.

laminated products, are now

was

vol¬

sales

is

feet

lively demand.

on

mainte¬

cash

possessing

terrain at Shoals, Ind., with some
view to a gypsum plant in Indiana

two

are

of

land

billion

a

profits, too, have advanced im¬
pressively.
For the fiscal year
ended Aug. 31, 1955, net per share

is derived from

An indicated 5%

hold

trebled in the past 10

perhaps as high
Considerable durability

thirds

two
ume.

redwood

net

demand accounts for almost

nance

to

with

western

Postwar sales of Masonite have

and furniture.

of the total

difficult of

most

largest

in

The

roughly

repair and

A

and

money

power

pur¬

now

rated

and

run

that

being

being held in abeyance
till the company catches un with
current orders, while earlier re¬
searched items, including perfo¬

retained earnings.
On
this
basis,
stock
dividends
at
quite regular intervals should be
expectable. Current per share for
should

is

plant

This

these

are

via

erty

fir.

111.

dividends

stock

new

facture

roofing

main

characterizes

get the

its

concen¬
it to its

the

as

con¬

on

asphalt end turns in around 60%

Board-Room Economics

Economics."

a

led

has

position

has

years,

roofing
shingles); and second largest
producer of asbestos products. The

only

Current incomprehensible explanations for
questions puzzling
author, such as to who "wins" the money that is lost on a

of

stock

on

Cur¬

carried
on
continuously at the
plants, and at a Product Applica¬
tion
Laboratory
at
Naperville,

at

Present

extra.

needs.

Another impressive thing about
Masonite
is
research.
This
is

that has
been plowed back into the prop¬

and

slower death.

of

$1.60 reg¬

are

Laurel

County, Calif, and supply

estimated

10%

1951/3

1954.

plant

Ukiah

and

1948, 1949 and

cents

equivalent to the

(mostly

as

the

paid in

1938;

fodder.

the

pine and hardwood for

Laurel

docino

augmented

in

in

40

manufacturer of asphalt products

asbestos

our

69

for

building market,

tration

prospect of finding

no

error

itself

see

cer¬

principles

Ruberoid

purpose,

centrated,

incomprehensibility to the uninitiated of our established pro¬
spectus provisions, he says
"nowadays a properly registered pro¬
spectus contains everything; it is as
long as this book, and duller."
a

to

With considerable singleness

ress.

procedure and publicity closer
Department of Weights and
Measures, and a little
looking for an enemy. Rapping the length

The author maintains that the
Commission should
doctor who has
only one

commendable

corporate management and prog¬

the

less like that of G-men
and

dedication

demonstrated

Serious Humor About the SEC

in

split

shareholders

somewhat the

is

1889,

split

in

Mississippi and being held

raw

the

said

be

raw

been

chased locally. The remaining 70,000 woodland acres are in Men¬

has been rather nicely developed
on
the
basis
of
delivering to

the roof down.

Special treatment is given

rent

Ruberoid.

on

in stock for

plus

whole

of

Ruberoid

The

should

dividends indicated

on

with

start

3-for-l

2-for-l

as

absence

since

year

a

1950; 5%
a

compa¬

of minute detail.

too

dividends

stock dividends

general

and

today's "name"

and

by

1955

nies, let us warm to our task of
brisKly painting their corporate
portraits with
a
rather
broad

anti-philosopher is

our

Ruberoid

With
salute

whose delinea¬

on

recog¬

nized leader in its field.

forecasting proclivities.

author

York

history; and (6) each is the

real service in
warning the investor againsc

a

New

on

Exchange;

Forecasting

are

include

would

NYSE

on

has

sawmill

are

reserve for future

in

dividend

Cash dividends have been

each

outstanding; (3) both pay on the
average less than 40% of net in
dividends (they plow more than
they pay); (4) the shares of both

at the
service to the uninitiated

swipes at illusions regarding that elusive
trend,
chartists' activities

Cobleigh

(1) both companies are
progressive; (2) both companies
have less than IV2 million shares

prediction, Wall Street's perennially favorite
indoor sport, does Mr. Schwed
render a
particularly effective
debunking job—accompanied by a
grotesque Peter Arno cartoon
picturing a customer with his nose on the
ground in pursuit of
an "indelibly indicated
trend." In specifically
taking great realistic
tion the

cash

matter

of

acres

of

area

excellence

36V2.

Something
U.

violence to
Further points
of

comparison

of

area

sheet

selling

now

about
Ira

ment appears to do no

with

rack

In

n

panels; so
joint treat¬

as

the

o

walls

facts that

rendering highly constructive

as

shares
around

and

enjoy¬
significant observation. In these and
other phases
of today's financial
world, pleasurably depicting Wall
Street's
foibles with his unique sense of
humor, the author is
as

p.)

vertical

original earlier bearish
up-dated "Bull Market
Edition,"
Mr. Schwed's humor-laden
philosophy offers rich food for
well

conservative

balance

day's capitalization consists mere¬
ly and solely of 1,479,986 common

other

Cor
A. Wilfred

In any form whether
contained in the
or in the
present
as

build-

(Masonite

market edition

ment

of

g construc¬

the

Market, will the customers

with the yachts?

up

n

tion, while

>

Bull

to

July 1, 1955, have been
about $30 million. All this, mind
you,
without a single bond or
preferred stock flotation; and to¬

roofing

end

great contrast

phenomena of today.

spe-

more

1

about lack of custom¬

yesterday,

One

in the

profits (via capital gains) is not applicable
in the bullish Blue
Chippy 1950's as it was
after the sluggish post
'29-1930s, it is still useful
as
a
warning and reminder of everpresent
investor frailty. Likewise
constructively useful
the investment

tion

swath

280,000

ended

t

a

ializes

ers'

able

Devo¬

Ruberoid,

the

are

liabilities.

declarations,

dynamic

best.

financial

where

current

have provided all
the funds required for
prudent
expansion, from internal sources;
and total expenditures on
capital
improvement,
for
the
decade

enterprise

yachts," which prompted the

customers' yachts?"
If the implication

corporate

its

being

wonders of New York's
When he arrived at the

brokers'

f

ceeded

supply of

range

This

prudently attended to by Masonite
timberland. holdings
of
351,000
acres
(roughly one fifth of the
size of Rhode
Island). Of this siz¬

assets, quick items alone have, in
same
period, regularly ex¬

company,

old

Battery, the
guide pointed out some elegant ships
riding at
anchor, explaining "there are the great Wall
Street

material.

the

and

lent examples

which the author says he
blandly
An out-of-town visitor was

the

shown

district.

top

Today's swift synoptic security
searchlight is turned on two com¬
panies, serving the building
industry, which are quite excel¬
0

intriguing title

"swiped;"

two

arrival

epic

The

liable, long

of

sell

$55 million in wood products
annually, there is need for a re¬

Enterprise Economist

consideration

and

some

drawer companies with distin¬
guished earning, dividend and growth records—The Ruberoid
Company and Masonite Corporation.

WHO OWNS THE
YACHTS?
Any need for

Naturally, to produce

By IRA U. COBLEIGH

By A. WILFRED MAY

remedied

making wall coverings and sidings
in a plant at
Dover, Onio.

Double Entry into Building

Observations...

5

company.

houston. texas

6

The Commercial and Financial Chronicle

(2310)

events is

Canada: Its Economic Prospects
And Its Railway Problems
By DONALD GORDON, C. M. G.*

ci:.

Chairman

President

and

Canadian National Railways

After commenting

Mr. Gordon

ress,

uncertainties,
the pattern

ada's

a

Royal Commission has been set
international

on

trade,

unless U. S. liberalizes its world trade
with this

up

part of

.ing

nation

to determine

and

policies, the trade

standing

gap

around

freedom.

not

effect

long

so

to

ago

the

that

the refusal to accept, the
fact of Canada s complete political

select
parliamen¬
procedures

survival

British patterns in our

Columbus

tary

disc overed

of

implies, in

1492

and

no way, any subordination. Canada is able to wnte its

*A merica

in

institutions

and

ticket

own

constitutional mat-

in

America

ters

dis

eign affairs are under the inde¬
pendent control of Canadians. In

cove

red

Canada

in

1952.

That, of
is un¬

democratic

every

free

course,

a

true, and per¬
haps a little

mains

unkind
both

It

to

is

true,

and

light

of

The

master

of

monarchy

symbol of

a

our

is
its

cv
•-

Donaid

Gordon

other

F ^r0WJ\ r mai s'
Winston Churchill once said
the
.,

«lr
as

When Cana-

magic link.

J01n

S1"fing
ave
sharply on Canada, the Queen," to the same +
tune as
some peole
in
this one of your national anthems, it is
in our progress the really an expression of
the fact
ingredients of a
rags to riches
that
Canadians
recognize
moie
story. I think, however, it is moie than one Sweet Land of
Liberty^
accurate to say that our common
If this situation appears to you
roots run
deeper than uranium to be
slightly paradoxical, then
mines and oil wells. Our kinship
more
anomalous
will
seem
the
u

cused

1

n

more

a

business.
far

wag

to

a

perhaps
country saw

n<*

and

find

The

customs

torms,.
of law

are

both

of

similar.

based

the

great

same

of

the

_

Canada

.

is

all

demonstrate

the

more

con-

,

.

Q

.

,

,

vincin^, when pi sented m istwo
vision of freedom
all

parts, the
the

more

when
•

.

splendid and

it

impressive

pictured

is

two

on

J common
s*
This
well

try
ada

is

the

in this

many

coun-

relationship that Can-

maintains

Frequently,

a

with

source

public
private
enterprise,
the unique courtship

and

with

along

that preceded
been

between

it, by and large has

happy and successful

a

asso¬

ciation not without, of course,
usual domestic difficulties.

the

The Canadian railroads, it is no

exaggeration

thinly

to

in

say,

populated

lacing

country

a

from

coast to coast, played a major part
in nurturing it from an agrarian
dominion t0 a high ranking indus-

jrjaj p0wer whose voice is listened

to

the

at
Jd

council table of
■
nation that

essentially

Qnce

the

From

Canada

hag

prime producer,

a

b

to

well.rounded

wag

evolye

and

diversified

sturdy, more balanced, steadily growing in depth.
Canadian

Tremendous
made in

strides

o£

the

Crown.

of misunder-

Economy

have

been

this

record

a

to

in

12

States.

It

and

coast,

the

,

United

,

it

year

26

is heading for

billions.

In

late

happy to
swing

1953

that

say

did

a major downdevelop and 1955

not

reveals

WAIC

itself, it is the largest single emit is the largest single empi0yer in the country. Its books
assets

handles

at

$700

$3 .biHions

million

and

worth

it
of

business annually.

point

National

u„tulu

rmn^c

now

Canadian

the

Canadian

vvtii

no

mr

be made

+Uo

by the
industry;

construction

all-time

an

and

high

of

nearly

gain of 8%

a

approximately

1954

over

2%

previous high in 1953. Manufacturing is showing sizable gains

finanCe and

market

came

transportation enterIt was fashioned out of a

hodge-podge of

some

rni._

300

corpora-

^

tions. The interesting, strange, and

baffling

railway

formed

the

history

sequence

of

a

year

for

and

ago

export
goods con-

tinues to reflect strength.

Capital
outlays for mining will be up conni^
U1"
siderably according to recent estimates. All these are indicators
A

of

expanding economy and

an

a

have,
of
course,
great
strength in reserve. Ours is vir:s is
virtually a promised land of ! natural

Trading Markets

the

resources,
has been
,

vast

explored

quantities

cious metals.
visible

PHILADELPHIA

the

but

which
The

north

have

slightly,

to

sure

and

of

scratched.

of

almost

are

surface

hardly

reaches

been

Maintained in all

yield

its

h

c

varieties

and

of

pre¬

We have the largest
reserves
in the

iron

extends

ore

from

S., and

prise

of

one

the

our

Arctic

to

timberlands

the

two

the

com¬

remaining

great forest belts in the northern

hemisphere.

Philadelphia Banks

However,
ment

corpo-

moved

from

STROUD & COMPANY
INCORPORATED

I

indicated

a

mo¬

the picture of Canada
suddenly stumbled upon

were hitherto unknown
undreamt of has been some¬
what
overdrawn.
Certainly the
extent of our forest and farm
re¬
sources has been known
for dec-

ades

edge

PHILADELPHIA 9

and




Atlantic City

Lancaster

it

even

Canada
<

further

are

the

should
felt

to

like

this

to

very

in 1956,
probable

ago,

President

be

tell

first

condition

gotten

1956,

if,

give

few

to

mortgages

on

the

'

p«
essential basic

Two *RS

our

in

economy

automotive
nents

supports to

1955

insurance
decline

income

affecting
funds is

company

of

some

government

below par.
Life insurance
companies generally do not have

industry, its compoadherents,
and
the

and

buy the

bonds

the

were

to

at that time,

circumstance

life
the

Two

bank

of course, was
knowledge of their

the

Another

were

corn-

corn-

comment,

months

Eisenhower

some

firm

a

premium or - investment
anticipated in 1956.

had seemed

as

some

this

until

the insurance

would

based

likely

bank

carry

mortgages

of

piPPtPrj

rp

to

biock

what

was

local

a

mitment

econ-

payment im¬

if

That

the condition of the

on

omy.

I

in

for

But

be
of

panies

in

higher rate, they
they could not com¬

stated

time

and,

guaranteed

much

themselves

block

re-

firing line. Because of this peculiar
situation, we
are often called upon for an
opin-

we

government
a

could

officials

ion

attractive

mediately.

whose

though

as

.WA

for

common

during

possessed

tentials for

As

was

the

knowl-

30s

enormous

hydro-electric

iiJUiWIULUlL

production

Continued

Of
of
on

that
po-

power.
pu W CI .

mineral
mineral
page 28

President

and the Republicans
trol of the economy

for

reserves

in

Eisenhower
in

were

in

value.

ceeds

con-

1956.

securities fluctuating

Some

rates.

of

their

part

at

govern-

the

automobile

would

panies,

decline

com-

somewhat.

jn

The masons:
Over
~

700,000

of

1955

stocks;

_

restriction in credit
terms;
the fact the
average con-

despite

sumer,

increase

some

in

income, probably would have less
to spend
This

on

hard goods,

consumer

last

sumer's

is

because

purchase

of

the

hard

con-

goods

in

1955, including of course automobiles, was not alone from 1955
income

and

not

alone

obligating himself into
Installment

debt

1954

its

in

and

the

was

rise

from

paid

naia^ aPPrecjably the
m

v

credit

4Another
could

instal-

4.1

backlog.

.

contributing

reason

well

buyer
buy an automobile, washing machine, air
conditioner, redoesn't

similar

freezer

articles

soft

ing,

food, department

risp

hasprMn'+n

year.

We

goods

buy-

store

sales,

^°U^ con^n1ue to

anH

monpv

,

i

i

j

think

mma™

the

utilities

opinion, to be
One

other:

areas

Summer

bound,

marked

our

deterrent.

that

reason

in

should

report from
that starting with the

mentioned

most

a

Such

well.

as

is

of

is

the

1955, buying

became

selective and the trend was

toward

expensive homes,
certainly some indication that demand was being more
closely filled than before. Those
This

more

was

are
likely to be the basic con¬
tributing factors for some decline
in home
building. Will the econ-

in 1956, because ot
activity
in these two
industries?
We think not.

decline

omy

lessened

basic

We think industrial building
and equipment purchase, institutional building for schools and
hospitals and road building (Perhaps sponsored and partly Pr0"

home

vided

|

that
u

consumer

^

-uV wou^" decline somewhat,
P°sslb}y to approximately a milV?n s*Jrts—not too heavy a decilne- Contributing reasons: higher
"

.A„

for

circumstance

goods

'

.

we

other

thln ?n +S°r ar1ger
wmi ?! ?'
!s

inoomp

huvinp

and

every

consumer

build, will have to find the funds

more

be
that part of the
demand for hard goods has
been
satisfied.
The
normal

frigerator,

building has been so rapid
fringe area land with the
utilities in (such as water, sewerage, streets, which are requisites
for securing FHA mortgage commitments) is very scarce. Many
a building contractor, to be able
to
continue
to
subdivide
and

will

buyer must have used part

deterrent to

that

amount be

_

mpnf
ment

down

1955

in

a

areas,

his

future,

become

other

in

rates

money

the
attraction
of
mortgages. A
strong contributing factor in our
opinion is the fact that in many

themselves;
And

higher

1955.

directions

models

Some rise in prices in the
autos
Some

least for
at

It

Higher

in dealers'

are

in

commitment

certainly is manifest that
jf those commitments were given
in 1955, the same income cannot
he hspH for additional nurchases
be used for additional purchases

aPPH.ance anc* automoof

used

mortgage

We

b 5 sales' despite the prognosti-

cations

and

Scranton

Walter E. Heller

Because life
found these

companies

a

at

often
mit

rations' do,

think
as

riches that

Allcntown

effect,

very

large

offered.

were

bond

readily

more

ago,

having

Pittsburgh

gages

investments

g e s

than

buying.
This be¬
manifest when large blocks
FHA guaranteed home mort¬

insurance

and

a n

they in turn indulged

instalment

of

they feel,
as we do, that
they sense the
economy

part

came

clients.

our

great

world, the potential for petroleum
U.

BANK STOCKS

New York

with

earmarked
available

funds
purchase of Federal
Administration
mort¬

So

gages.

in

Funds

life
insurance
I believe some

1956

Housing

close

in

the

toward

And

—

We

Send for comparison
of 11 largest

contact

their

of

industries, we
privileged

the

Canadian

good road ahead.

Active

basis

hundreds

have

restriction

Life Insurance

are

to

some

During
1955,
companies, and
saving societies,

diversified

0f

and

prices
terms.

an

...

secured

—to

the

over

over

which

as

generally on a

six

shotgun marriage between public

Olten

talk today not

to

ouvail,CUl

m^o

total capital investment may reach

billions,

of fact,

AO

win

records will

new

into being after the
pirst World War as the result of a

prise.

want

—

itself.

show

I

economist, but as a businessman,
in our particular business, that
of supplying funds and services—

few short yeqrs. In 1939,

a

the
unmistakable
signs
hotels,
trucks,
telephones
and that the
upturn is well advanced.
telegraphs. Outside of government Jt is
expected, for example, that

i..-

*An
address
by
Mr.
Gordon
before
the Economic
Club of New
York, New
York
City, Nov. 14, 1955.

while

funds, credit, and basic interest rates.

a

economy, more

1 Strides in the

Does not look for much change in demand for

tionary trend.

strength

L

coast

stales

In

heritage is known
enough, but perhans not so

well-known to

came

mentioned

^nance

control

railways which
into the ownerThe "marriage"

of

ship^rCanadar

in

|The lesson operates trains, buses, ships and

democracy^ which die United
States
and

to the world

Railwavs

the largest on the North American
continent and one of the largest

idea, from

common

tiadition.

National

practical to delegate
of professional man-

group

j

obvious that it

was

Canada., and else^or instance, our grb'ss national
all are where. This railway organization, product was less than six billions,
systems

principle

of

.

Canadian

peoples, the functions
The

of the

common

demociatic

on

the

economy

large

a

administrative

by accident

unique arrangement under which

^

pursuit

the

^e§^nn^n|s life
j,n
modes of

governments,

„

essentially

the

*ts

things.

So it

the

the

of

increased

the

to

more

group

agers

and

these

ill-suited

therefore

which is usually found in private

re¬

kinship

with

association

free

fo-

was

-

as

for¬

Canada

way

and

and

members of the British Common-

course, that in
1952 the spot■

nation

destiny.

own

nations.

domestic

both

and

is

Holds greater government spending, combined
capital outlays of industry, could keep the
going at its high level, though creating some infla¬

second term.

a

with

technical organization of the type

or

The

of liv-

way

the North American con¬

day to day task of running

the failure to compre-

is

democratic

our

on

and

,

hend,

executive foresees continued high
1956, and predicts possible increase in
Federal spending should President Eisenhower fail to run for

Among other things, our Cana¬
philosophy holds that the
of governmental ad¬
ministration was not designed for

.

In talking about Canada to an
American audience, I am reminded of the wisecrack which went

Prominent finance company

levels of business in

mechanism

.

;

By WALTER E. HELLER*

President, Walter B. Heller & Co., Chicago, 111.

dian

that

warns

cannot be easily filled.
Paints picture of
Canadian railway situation.
Canadian

/

now

tinent.

of Canada's economic development. Stresses Can¬

dependence

In 19S6 Business

in
any sense represent a deliberate
experiment in socialism. It is an
organization directly modelled on
did not and does not

the kind of institution that forms

despite the rosy outlook, his country
"Midas touch," and, because of future

Might be Expected

mation of Canadian National Rail¬

of a private business enter¬
prise and is really an example of

prog¬

warns,

has not acquired the

What

that

the strides in Canada's economic

on

occasion, but I do want to
impress on you, in view of what
I shall say later on, that the for¬
ways

Thursday, December 1,
1955

.

than I could review

more

this

on

.

.

address

by Mr. Heller before the

for
—

by
^

a

Republican Gov-

ernment to be sure the economy
doesn't sag)
the increased need

for

labor

saving

machines to
the trend

counteract 1101115 wages,
rising

WUllVGiaGl

1

'

*

'

ll

-a

J5®1"8 kn?Jn ^ r^fr.Cttag

uotLJ'foriIZnnvt
factors
that
would
support

an
a11

Number 5486

182

Volume

.

.

.

The Commercial

and Financial Chronicle

(2311)

similar- to that'

economic tempo
enjoyed, in 1955.

that

difficult situations

the

of

the Republicans in the past
has
been the economy of
the
for

With

farmer.

reasoning

in the recent

for

Demand

go

of

funds,

credit

and

think would

rates we

the

Republican

stay

to

1956, the
could

in

letup

ciable

in

reasons,

demand.

The

opinion,

our

are

roughly as follows:
The

that

that

demand

heavy

exists

credit

probably arises from
combination
of
increased

tempo, the requirement
of plant expansion, machinery imbusiness

provement

the

and

to

turnover

portfolio short-term

in

1954

have

to

relative

tariff

policy

review
to

principles

The

tion

receivables slowed from
turnover

Republican

the

of

the

effect

their
well

of

The

to

would

same

to

ject to

basic

Government

support,

the

in¬

a

opinions

our

own.

and

Week

Subject:

7th

Speaker:

Joy Manufacturing

J. D. A.

expected,

•

that

a

great

many

these
will

Clevite Corp.

William Laffer, President

Northern 111. Gas

M.

26th

of

No Meeting

case

5th

Wednesday, 11th

U. S. Gypsum

C. H. Shaver, Chairman

!

Gt. Lakes St. L. Ass'n

N. R.

1

extent

may

Wednesday, 18th

W. R.

Burroughs

Kenneth

J.

Grace, tentative

John D. J. Moore

Tiffany, V.-P., Firu

February:

1

Wednesday,

1st

McGraw Electric

Wednesday,

8th

Emerson Electric

W. R. Persons, President

Square D

F. W. Magin, President

Intl. Tel. & Tel.

Gen. W. H. Harrison, Pres.
Leonard Jacobs, II, V.-P.

Am. Res. & Devel.

General Doriot

Natl. Distil. Prods.

John E. Bierwirth, Pres.

Harris-Seybold Corp.

George S. Dively, Pres.

Wednesday, 15th
21st

Wednesday, 29th

Large, Secretary-Treas.

be helpful to the

i-iveting

of

Danielian, President

Wednesday, 25th

viewpoints; time of course Tuesday,
as to
whether they ap¬

they

Chandler, President

January:

tell

proximate the trend. I hope in any

Morrow, President

20th

Thursday,

I

listeners will be at variance with

re¬

sub¬

into

way

have tried to state why we feel as
do. I am sure, and it is to be

would

in. rela¬

December:

Wednesday,

we

position

produce

its

ing in businessmen's terms

established

be true

farm

work

expressed are of
As stated to you,
I have tried to express our think¬

a

the

Democratic

lowing Program Schedule for 1955-56:

in

strongly
inflationary
trend, would be much more likely
to appear in our economy.

happen
if
the
Many industries

the

to

Analysis Announce Program

Society of Security Analysts has announced the fol¬

Wednesday, 14th

course,

■ gime,
which of course are at
of variance with
Republican policy.
these

has somewhat slowed.
own

win?
felt

changes

Cleveland

!

dustry's thinking, loosening credit
rising prices, meaning, of

carrying

larger inventories. Add
the fact that receivable

our

had

marked

made.

course

would

Democrats

a

Cleveland

materials under

raw

and

spending and some
credit, with possibly a

What

a

think, that as a consequence,
hesitancy or a fear psychosis Tuesday,

begins

Government

as

be

if

Adminis¬

rate

to

related : to

We

could

by larger

basic

price

Government spending, would per¬
haps feel there were adjustments

tration still in power
during 1956
bolster
the
economy.
This
would probably be done

way they are easing of
with some slight seasonal decline in the
fluctuation and with no appre¬ concomitant.

In

for

the

economy
somewhat and one

expect

anticipating

forward with plans

today,

the

such

bring about a
the part of business

on

approximately the

for

change less
If

being committed

support

those circumstances could well
be
expected to rise. Some
industries,

to

■

basic

a

business.

1

parity. Basic

would

lessen

has

Democrats
firm

con¬

conditions, and
or
declines,

to

bettered and that the farmer
than he

have

wavers

Government they had visualized

would feel himself less of a step¬
child

investors

investors anticipate

tempo

past..

it

favorable

would try to see that farm income
was

means

when

election year in hesitancy
it is a fair guess people to

Republican

a

it

an

1956, I .suppose
that

rises

great foresight and
anticipate
tinued or better

The Farm Situation
One

it

your

upon

possible changes

may

March:

attention

be guided thereby.

so

that you

Wednesday,

7th

Wednesday, 14th

36-day

a

47-day

a

turnover in

1955, probably in turn
manifestation of the fact that it

a

takes more

to

money

run

than it did in 1954.

ness

these

problems

have

busi¬

a

been

themselves

Other

large

that

in

way.

ojjer to buy securities.

$25,900,000

the

around

balances

Union of South Africa

had never borrowed,
the banks as large

and

at

appeared

seasonal

short-term

borrowers.

which

corporations,
seasonal

been

an

November 30, 1955

country with the bigger banks for

Other

soticilation oj

New Issue

which

corporations,

carried

years

or a

long-term issues and pro¬

or

vided

had

ojjer oj securities jar sate

de¬

Very large corporations turned
the public with stock, deben¬

tures

an

met

probably explains the heavy
mand upon the banks.
to

This announcement is not

The way

*

had

at

borrowers

the

External Loan Bonds of December 1,1955

bank, found they were no longer
able to clean up and became steady
And

borrowers.

other

$3,000,000 Three Year 3%% Bonds, due December 1,1958

concerns,

large but, less worthy
of unsecured credit, have turned
to companies such as our own and.
have done secured borrowing in

some

very

% Bonds, due December 1,1959

$3,000,000 Four Year

4

$2,000,000 Five Year

4V8% Bonds, due December 1,1960

$17,000,000 Ten Year

4Vi% Bonds, due December 1,1965

>

unprecedented amounts. Our own

portfolio from September, 1954 to

September, 1955,
I

and

risen 30%.* had

hand

not

some

been

combination

put

of

■

18 or 19%,
easily have
restraining

rose

could

presume

The

it.

on

circum¬

these

a

a

Prices:

stances,; together, -wiih ^yery Tr6e
consumer
credit,
probably
ex¬
plains
the
very
heavy loaning
ratios that most banks

With

but

little

100% for the Three Year Bonds

have.

100% for the Four Year Bonds

in tempo,
appreciable

change

cannot foresee

vve

now

an

100% for the Five Year Bonds

change in these circumstances.
The

Situation

Banking

S8V2% for the Ten Year Bonds

>

f

Should

banks

the

rise

loaning ratios
are

demand

in, 1956
now

upon

so

Ius accrued interest from December 1, 1953

the

that

the

existing, which

high, have a tendency to
increase further, it
is not un¬
likely that the Federal Reserve
System might relieve the tension
very

and

make

credit

more

through the easing of
ciuirements

Copies oj the prospectus map he obtained from such of the undersigned (who arc among the under¬
writers named in the prospectus) as mag legally offer these securities under applicable securities laws.

available

reserve

re-

operations in the
Government
bond
market.

Through
some

or

these

others

Dillon, Read & Co. Inc.

(and

mediums

essentially
these mediums), this Administra¬
tion can have a strong control of
the tempo of the economy.
too,

but

That is about the wav the mat¬
ter looked to us with a Republican

Administration
and
President
Eisenhower elected into office for
a

-second

term.

there

felt

We

a

buoyancy in the econ¬

omy and a confidence similar
that manifested in 1955.

What changes have
feel

elected

to

Democratic
in

we

President

a

hdence-inspiring
ked

to

right
may
take
place should
Republican Administra-

either a
hon with
be

less

or

should

Administration

is

Ladenburg, Thalmann & Co.

Kidder, Peabody & Co.

Ripley & Co.

i

Incorporated

Lazard Freres & Co.

Goldman, Sachs & Co.

Lehman Brothers

Merrill Lynch, Pierce,

Fenner & Beane

Stone & Webster Securities Corporation

Union Securities Corporation

White, Weld & Co.

Hallgarten & Co.

Lee Higginson Corporation

suc¬

great wisdom

market—that

Smith, Barney & Co.

a

winning the election?

stock

Dominion Securities Corporation

con-

than Eisenhower

office,

f-otion that there
the

Harriman

Kuhn, Loeb & Co.

Corporation

a

Many people, including busibessmen, are imbued with the
111

Blyth & Co., Inc.

-

^'ould be

to

The First Boston

when




Salomon Bros. & Hutzler

7

Swiss American Corporation

}

8

The Commercial and

(2312)

Gas—Analysis-Ira Haupt & Co., Ill Broadway,

General
York

Wall

Atomic

Fusion

mentary
i

atomic

and

thorium,

fusion,

on

uranium

oversupply—
Sept.

also available—both contain portfolio as of

man

Parts Industry—Bulletin—Bache

New York

&

Also available is

5, N. Y.

an

States Power

Securities
*

Boland &

the

in

sions

Outlook,
Ltd.,

Rates,

and

and

discus¬

N. Y.

Also available is

Steel

Corporation, and

analyses

Sumitomo

of

Chemical

Mitsui

Chemical

Co.,

Ltd.,

Co.,

Ltd.,

Riverside

and Tokyo Electric Power Co., Ltd.

Spring

St.

Paper

Jan.

Co.—New

5,

&

Co.,

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

March 2, 1956

9, Mass.

&

Company

52

—

Analysis

—

P.

McDermott

•

Cohu

&

A., 300 Montgomery Street, San

Co.,

with

1 Wall

Oct.

Francisco

Bank Stocks—Comparison of 11 largest Phila¬
delphia Banks—Stroud & Company, Incorporated, 123 South
Broad Street, Philadelphia 9, Pa.

data

are

on

Yale

5-6%—Bulletin—Edward A. Purcell & Co., 50 Broad¬
way, New York 4, N. Y.

Also

in

available

Corp.—Bulletin—Dean

&

McKinnon,

Witter

&

11

Industries—Data—Joseph

New

York

6,

N. Y.

Also

in

Faroll
the

&

Co.,

data

&

Smelting & Refining Co.—Memorandum—Talmage
Co., Ill Broadway, New York 6, N. Y.

Atlas

Credit

Corporation—Bulletin—George A. Searight,

Broadway, New York 6, N. Y.
Automation

Engineering

^

Corporation

115

,

Eastern

—

Bulletin

Daniel

—

D.

Co.,

Inc.,

42

Department.

past

was

partner

a

in

Shearson

Co.

Mr. Oldaker
J. F.

West 44th

Clark

Oil

Railway—Memorandum—Sarnoff

&

Co.,

65

Street, New York 36, N. Y.

&

Refining Corporation—Report—Loewi & Co., 225
East Mason Street, Milwaukee
2, Wis. Also available is a

report

on

Hycon

Manufacturing Company and analyses of
Company and Hagan Corporation.

Uranium

Mines,

Inc.—Memorandum—Tellier
Co., 1 Exchange Place, Jersey City 2, N. J.

Dayton Rubber Company

—

Analysis

staff of
West
bers

Co., 30 Pine Street, New York 5, N. Y.
C. A. Dunham

Company—Analysis—H.

Street, New York 4, N. Y.
I

T

E

Circuit Breaker Company.

Fairmont Foods

Hentz & Co., 60 Beaver

Also available is

an

Company—Analysis—Daniel F. Rice
Boulevard, Chicago 4, 111.

on

U.

York

Society of Security Analysts.




and

Morrison

17

«

SYRACUSE, N. Y.—Hyde, DiMarco

Rothman & Leveen is en-

in

business

securities

a

3(j)00 West Genesee

Street. Partners

Jerome

are

Hyde,

Alfred F.

the

C.

Merving Rothman,

staff

of

DiMarco and Leonard Leveen.

and

Boston

Stock

York
Established

Exchanges,

1856

Mid¬

Robert

Planning

H. Hentz & Co.
Members

(Special to The Financial Chronicle)'

Craig

with

is

joined

With Investors

-

TV A/I

Aline

—

Street, members of the New

Exchanges.

ORLEANS, La.

1

E'raPer> Sears & Co., 50 Congress

BOSTON, Mass.

—

Roland H.

Webb is

"0W ,a££i"ated wUh In"
ves^ors Planning Corporation of

Tullis, Craig &
Bright, Marine Building, members

New England, Inc., 68 Devonshire

of the New York Stock

New

York

Exchange

Stock

American

Stock

Exchange

New

Cotton

Exchange

York

Commodity

Street.

Exchange.

Joins P. de Rensis

S. Vitamin Corporation
and a "reprint of an ad¬
Compo Shoe Machinery Corporation before the New

on

York

has

H.
the

Bros. & Co., 141
Boulevard, mem-

New

Stock

to

(Special to The Financial Chronicle)

and Com¬

Company—Bulletin—De Witt Conklin
Organization,
Broadway, New York 5, N. Y. Also available are a bul¬

dress

the

added

11

«yde> DlMarco roraied

Chicago

Exchange,

Orleans

New

of

Board

and

Exchange

Cotton

other

Inc.
Trade

exchanges

analysis of

Gabriel
letin

Lamson

Kenneth

—

been

With Tullis,

Joins Calif. Investors

(Special to The Financial Chronicle)

pany, 141 West Jackson

100

111.

has

Jackson
of

west

&

Seligman, Lubetkin &

and

York

New

municipal department.

from offices at

(Special to The Financial Chronicle)

Powers

Daegling

NEW
—

Building,

Trust

the

of

ad¬

Reilly & Co.

BOSTON, Mass.

(Special to The Financial Chronicle)

Modine Manufacturing

Consolidated

formerly with

Draper, Sears Adds

Lamson Bros. Adds
CHICAGO,

Pacific

Union

gaging

Broadway, New York 4, N. Y.

Canadian

was

Conrad V. Schmitt has also been

Canadian Pacific Railway Company—Investment
study—Burns
Bros. & Company
Limited, 44 King Street, West, Toronto,

Ont., Canada.

Co.,

be

in Richards

Callahan is manager of the firm's
120

Inc.,

Broadway, New York City, anassociated with Paine, Webber,-nounced that Alfred
Oldaker is
& Curtis, 209 South La| now associated
with them in their
Salle Street.
Mr. Mitchell in the*
Trading

added, to the firm's staff.

&

will

CHICAGO, 111.—Leeds Mitchell

Basic

Reilly

Callahan

B.

to partnership

is

Hammill-&

F.

(Hot Springs, Va.)

Pittsburgh Stock Exchanges. Mr.

Jackson

Weston &

Inc.—Circular—J.

Securities,

1957

members

Adds A. Oldaker

(Special to The Financial Chronicle)

Co., 140 South Beverly Drive, Beverly Hills, Calif.
Avien, Inc.—Bulletin—Denver Securities, Inc., 711 Seventeenth
Street, Denver 2, Colo.
Atomics,

&

Eastern Securities

Peine, Webber Firm

American

Springs,

PITTSBURGH, Pa.—On Dec. 8,
Robert

Symington Gould and Westinghouse Airbrake.

(Palm

Richards Pariner

Towne Manufacturing
Co.—Bulletin—Reynolds & Co.,
Broadway, New York 5, N. Y.

Leeds Mitchell With

noon.

1956

Callahan io Be

Co., 45 Mont¬

Street, San Francisco 6, Calif.

on

reception

Wall

mitted

Broadway,
are

12

and

National Security Traders Asso¬
ciation Annual Convention.

•

29

bulletin

same

24-27,

Nov. 3-6,

the

/

ACF

luncheon

a

&

120

(Philadelphia, Pa.)

National Security Traders Asso¬
ciation Annual Convention.

H. J. Heinz and Clevite Corporation.

&

gomery

Yields of

Drake

Calif.)

20,

Gas—Data—Bruns, Nordeman & Co.,

Street, New York 5, N. Y.

issue

Transamerica

Philadelphia

Chicago

the

Investment Traders Association
of Philadelphia annual
dinner
at the Bellevue-Stratford

&

to be held at

Company—Report—Thomson
Street, New York 5, N. Y.

Co., 1 Wall Street, New York 5, N. Y.

•1

S.

Wall

Swift

Penny Stocks Worth Dollars in tax savings—Bulletin—Francis

■

&

South Carolina Electric &

same

of

at

National Committee
Meeting at the Drake Hotel.

10 Post

Calif.

Averages and the 35 over-the-counter industrial stocks

used in the National Quotation Bureau

Club

dinner

ciation

views—Lerner

—

T.

(Chicago, 111.)

Traders

Hotel,

Croix

N.

Southern

\

(Chicago, 111.)
National Security Traders Asso¬

/;

County Flood Control & Water Conservation District
Coyote Valley Dam Bonds — Circular
Bank of America,

showing an up-to-date com¬
parison between the listed industrial stocks used in the Dow-

30, 1956

Mid-Win-

the

Jan. 30, 1956

Sonoma

Over-the-Counter Index—Folder

at

Hotel.

Unilever M. V.

on

at
'

annual

table of related values of Wheeling

card memoranda

annual

Dinner

Bond

York

New

Broadway,

Meeting

(Baltimore, Md.)
Security Traders As¬

HoteL

Street, New York 5, N. Y.

Corpora¬

tion, 100 Broadway, New York 5, N. Y.

I. du Pont &

a

120

Axle—Analysis—Peter
Co., 44 Wall Street, New York 5, N. Y.

New York 6, N. Y.

Jones

ter

Paper Corporation.

Cement

Rockwell

Municipal Market—Bulletin—Park, Ryan, Inc., 70 Pine Street,
New York 5, N. Y.
New York City Bank Stocks—Outlook—First Boston

Corporation,

Office Square, Boston

.

Monthly Investment Letter—J. R. Williston & Co., 115 Broad¬
way,

Bowater

and

Co.,,

Industry
Gas

Tokyo

Hanseatic

Annual

sociation 21st

Northern

—

Corporation of America—Table of related values—New

analysis of Business Results and

are

Annual report

Co., Inc., 30 Broad Street, New York 4, N. Y.

Also

Investors Beacon"

York

Baltimore

Company, Minneapolis 2, Minn.

York

issue "Nomura's

Bank

Radio

Nomura

—

Co., Ltd., 61 Broadway, New York 6, N. Y.

same

of

Analysis

—

—

Hollv

the Bankers Club.

Quebec Chibougamau Goldfields, Limited—Analysis—John R.

rities Co., Ltd., Ill Broadway, New York 7, N. Y.

Japanese-U. S. Taxation Conventions

Company

at

(New York
City)

Jan. 27, 1956

Northern States Power

Investment Opportunities in Japan—Circular—Yamaichi Secu-

Convention

1955

New

Company, Farm Bureau Building, Oklahoma City 5, Okla.

Co., 36 Wall Street,
analysis of Western

^

Association

Security Traders Association
of

Turnpike—Progress report—De Leuw, Cather &

Northeastern

Pacific Railroad.

~

Dec. 2,

issue

Co., Ltd.,

Industries.

30, 1955—Atomic Development Securities Co., Inc., 1033 Thir¬
tieth Street, N. W., Washington 7, D. C.
~
v
,
Auto

current

Securities

Nikko

(Hollywood

wood Beach Hotel.

of "Weekly Stock
6, 1-chome, Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo, Japan. Also avail¬
able in the same issue is an analysis of Toa Gosei Chemical

com¬

in

Rayon—Analysis

Nippon

Bulletin"—The

report containing

annual

Brake—Analysis—Laird, Bissell & Meeds, 120

Air

York

1955

Investment Bankers

Street, Chicago 4, 111.

Salle

La

Field

Florida)

Broadway, New York 5, N. Y.

booklet—Harris, Upham & Co.,

Confusion—Quarterly

Investment

Nov. 27-Dec. 2,

Fuller & Co.,

Paper Mills—Memorandum—William A.

South

209

Broadway, New York 5, N^Y.

120

Street, New York 5, N. Y.

Morris

New

Atomic Energy Review—New

In

Investing Corp., 80

Valley Uranium—Report—General

Lisbon

he pleased
interested parties the following literature:

send

EVENTS

Bissell &

Meeds, 120 Broadway, New York 5, N. Y.

understood that the firms mentioned will
to

COMING

O'Connor

Oil Co.—Memorandum—Doyle,

Tidelands

Guaranty Trust Co. of New York—Bulletin—Laird,

Recommendations & Literature
It is

New

Co., 135 South La Salle Street, Chicago 3, 111.

&

Thursday, December 1,
1955

...

6, N. Y.

Glasscock

Dealer-Broker Investment

Financial Chronicle

BOSTON, Mass.
Pagano is

now

—

Vincent D.

connected with P.

de Rensis &

Co., 126 State Street.

Mr.

was

Pagano

New York

previously with
Hanseatic Corporation

and Eastern Securities Inc.

N. Y. Cotton Exchange

(Special to The Financial
Chronicle)

LOS

NEW YORK 4, N.

ANGELES, Calif.—Richard

Chicago

Detroit

•

Miami Beach

R.

Holecl^ek^ias joined the

of

California

shire

staff

Hollywood, Fla.

Investors, 3924 Wil-

Boulevard.

He

was

Pittsburgh

•

Coral Gables

•

•

Bldg.
Y.

Beverly Hills,

Cal.

Geneva, Switzerland

Amsterdam, Holland

pre¬

viously with J. Logan & Co.

LAMBORN & CO., Inc.
99

WALL

STREET

NEW YORK 5, N. Y.

SUGAR
Raw

—

Refined

—

Liquid

Exports—Imports—Futures

DIgby 4-2727

Number 5486

^lume 182

.

The Commercial and Financial Chronicle

.

.

(2313)

Moline, 111,, they, under the lead¬
of Matthew Porosky, are

Insurance Stocks

spending

By ROGER W. BABSON

Mr. Babson

and

certain good chain store

to

stocks,

insurance stocks present the best

Gives list of insurance

accidents.

increased
furniture

and

hope

com¬

of

fires

ment

trusts

I believe that insurance
stocks present the best opportu-

in

nity to investors for a combination

or

mutual

funds; but

of

security,
growth, and

have

the

The funds of in-

companies consist of two
major portions. First, there is the
which

reserve

is

set

income,

pro-

unearned premiums.

vided

the

is usually

government
does not fool-

grade

against

up

This

reserve

in highly liquid, high-

assets

available

isl?ly interfere

inm

insurance

which

quickly

are

demand.

on

at

ance

ness.

of what may

Fire

and

casualty

m-

surance

stocks

selling

sub-

companies' portfolio consists

be described as the
stockholders' equity, which serves

kind of additional guarantee
fund to protect policyholders and
stockholders.
How this fund is
as

work

the

a

textiles

Gen.

derwriters

that

with

reason

why Tarn bullish

the

general market.

Too

Vincent

of

continue

of

the

known
be

due

This

uphill
the

Reynolds & Co., 120 Broadway,
York City, members of the

fires

re¬

to

With Ross, Borton

smoking

board

task

has

to

Babson

'

cigarette

OHIO—Leonard
D. Dodge has joined the staff of
Ross, Borton & Simon, Inc. The

adver¬

the

with

fire

should

insurance

supply

Honnold Adds

the

people

with Honnold and

should

three

requirements.
these

that

I

of

(alcng with the general run
issues) because of their

dends

and

higher

equity

most of these companies have suf-

fered

as

An

....

values.

the unusual losses

of

result of hurricanes.

a

examination

of

of

the

contract

fire

and

casualty stocks, however, shows
that, based upon the distribution

_

When

spend
the

firms

New

York

the

to

advertising.
insurance
companies
on

Hammill

the

&

number

22, located

across

the country

With Livingston,

W.

become

Mead

is

now

Williams

stocks

actually
have more money working for
them than the market prices of

if*fSueti

Hanna

affiliated

Company, Inc.,

with

Building. He

was

Gottron, Russell &

524 Seventeenth Street.

Ball, Burge

&

Kraus.

an

to

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

buy

any

offering of the Debentures for sale,

NEW ISSUE

or a

solicitation of

an

offer

November SO, 1955

,

Over and above

inhe ent element of strength
I Un
arounc* ln the
bull mar-

tnr!?^20t

$10,000,000

u

?

folios and

that

ket for common stocks-the above

this

can

substantial

selected

stocks

in

be bought

now

below

their

the nSkS are r6la"

3l y
v

Insurance

Compared

stock in

insurance

some

maerriilTe myaVidSea P
+?
the

•

m

Premium

•

+

«

as

vu

accompanying tab e.

Rates and Earnings
.

The

long,

record
of
these
stocks
through
periods of good times, depressions,

tional

This

fires,

great

wars,

disasters

certainly

soundness
ness

well

as

to

attests
to

as

to

the

surance

stocks

evidence

of

increasing amounts
sold.- The
could

offset

the

in

average

Rates

insurance
is able

to

a

a

as

ef-

the

whole

fair return

on

the business handled.
T

.,

,

Investment

I

the

pervisory

Great

diversification

advantages

of

su-

invest-

piv

Company

to

the

He

was

burned

out

ton

in

getting

goldman.

State only from such of the several Under¬

lawfully offer these securities in such State.

leading

municipal fire
in the country's
cities,
the
fire
chiefs

turned their attention to sprinkler
systems under the leadership of
George I. Rockwood of Worcester,
Mass., of which company Wm. J.

Carroll is
As

now

statistics
that

companies)
well

traffic

Ind. An.

co.'

sachs

bltth &

lehman

& co.

smith.

co.! inc.'
brothers

barney &'co.

After

paine.

these

jackson &

webber.

curtis

baciie

&

dominick & dominick

co.

hemphill. noyes &

co.'

as

beginning to
many

were

by fires, the Game-

laboratories

lights.

INCORPORATED

incorporated

almost

as

a. c. allyn and company

clark. dodge & co.

pirst california company

President,
were

worked

Ratio:
Price to Est.
Investment

Per Share

schwabacher & co.
francis i.

dempsey-tegeler & co.
emanuel.

dupont & co.

deet.ten &

co.'

upon

With factories

6/30/55
Net Worth
Recent or Equity

Earnings

Div.

Price

1864

37

$64

58

89

I6V2

41

69

18 h

reynolds
bateman,

walston & co.

& co.

crowell, weedon &

eichler & co.

co?

e. f. hutton & company

12
15
16 2
20k
16
16Y2

at

I8V2

1858

1937

1.20

1873

1.50

39

Hanover Fire Ins

1853

2.00

Home Insurance*Nat. Union Fire

1874

2.00

48
51

1934

2.00

New Amsterdam Cas.—

1937

1.80

46
56

61
75
78
71
82

Springfield Fire & Ma.

1867

2.00

65

104

have invested my hard-earned savings in the Home ^surance
I was once a director.
I have learned first-hand the high

which

their officers and management.




any

as may

systems

Firemen's (Newark)
Great American Ins.___

I

he obtained in

staats &

william r.

Chicago,

in the fire alarm idea.

Fire Assoc. of Phil.____

of

may

writers, including the undersigned,

Returning East, he interested Bos-

$1.60
2.20

of

ground!

Since

Ins

1955

and

step was the inventing
pf a fjre alarm system b,y John
n. Gamewell of Newton, Mass.

pd.

Ea. Yr.

*

life

of

lantern

the

first

The

Some

Agricultural

loss

corresponding losses to insurance
and

DECEMBER 1.

has been made

progress

preventing

being killed by automobiles (with

Trusts

Insurance companies usually

have

Copies of the Prospectus
Use of Non-Flammable Materials

show
.

_

INTEREST FROM

ACCRUED

stocks
are
a
logical
post-inflation investment,

Chicago

experithat

so

PLUS

the lag in premium rate raises,
form of

burned

population

loss

set

industry
make

than is usual for other types of
companjes> ancj (3) Because of

alarm

of the
are

100%

PRICE

and

Fire insurance rates are established by state regulatory bodies
on the basis of a
continuing fiveence.

X

cow

feet of inflation.

year

share

earnings ratio somewhat higher

over

ever-

unfavorable

1975

1,

december

debentures

,

eU

v

kicked

insurance

of

increase

*™ese

property since Mrs. O'Leary's

years' is

for

need

due

subordinated

5?™!!

the

soundness

the

over

the

convertible

under writ ngs are
"t0 ttle

in

companies. The
equity values in in-

of

u,

na-

of the individual

growth

4%

Convertible into Common Stock at $27.25 per

j; Dy
on
"f "L p

me.

insurance busi-

the

of

other

and

appeals

they

insurance

.

dividend

unbroken

com-

though

even

Northrop Aircraft, inc.

H15"thf reasons are: (1) In ad-

com-

he should perhaps first buy
the
stock
of
the
companies of
which he holds a policy.
Inves-

i!if J

shares,

SG"f

valuefovS

current market values of the

pany,

unds

book

must pay 20% tax on the income
from their investments.

Stocks

As every reader of this column
should have
fire, casualty, and
life

been

^tted!asset^^
pany

..

Different

.

at

discounts

—

Company,
character

hill richards & co.
lester.

sutro

ryons & co.

bingham, walter

& hurry, inc.

cruttenden & co.

Donald

associated

with

Livingston, Williams & Co., Inc.,

This is not

.

Most insurance

in¬

and in Canada.

,.,

of funds in their investment port-

group

Co.

its offices

of

CLEVELAND, OHIO

Staff

COLO.—Marshall B.

has

con¬

organization.

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

DENVER,

the

With the newly acquired offices

_

Other Reasons Why I Like
lhese blocks

earnings, increased divi-

I also know

term

Both

name.

of

the law of averages working out
in a particular kind of insurance,
the greater the term that the
capital funds may be invested,

gone

good

increase

the

recog-

have

much during the past several

up

years

longer

upon

and the greater the reliance upon

do

stocks

vestment, depends somewhat

in-

these

meet

nize

es-

type of

tinue with

Building.

this

Hatfield

their

regards

as

and

Stock

to

CLEVELAND,

values

w

oger

managed,

members

are

creases

(Special to The Financial Chronicle)

a

com¬

timated equity the kind of insurance written. The

low
r

be-

Hammill

son,

Shearson,

are

1010 Euclid

companies

of¬

Mass.

Pittsfield, Mass. under the Shear-

York
Stock
Exchange, on
Dec. 8 will admit Donald F. Cook
to partnership.

to

causes

interfering

advertising,

latter's

sonnel of tne Tifft firm will

Fire

tising.
Without

the

Springfield,

New

matches.

with

operate

in

Exchange and other secur¬
ity exchanges. Partners and per¬

26%

tremendous

will

Brothers, old
firm,

investment

New

of

losses

from
to

England

doing to lessen fire

is

over

Hammill & Co. has acquired

the business of Tifft

Un¬

Board

these

believed

SPRINGFIELD, Mass. —Shearson,

fices

Admit Cook to Firm

marvelous

Merge

With Shearson Hammill

and

Reynolds & Co. Will

High

Mgr.

Tifff Bros.

New

stopping

or

board an equal amount of
money
to spend on
newspaper advertising
to prevent fires, as the tobacco

stantially

on

good fire and accident insurance
stocks for the long pull,
although
these stocks may decline with the

The official statistics show

ported

pete

whole

non-flammable

Losses

National

climb.

other

their source.

that

losses,

and

The second part of the insur-

with the busi-

of

see

the fire losses per home
begin to
decline.
The above hope is an¬

life

urging the

Notwithstanding the

surance

addition,

business profits.

the

are

preventing

Fire
Next to certain good chain store

reduce

Now

use

panies and their relative investment positions.
stocks,

to

army of fire chiefs

opportunity to investors for
security, growth and income, provided there is no foolish
gov¬
ernment interference with them.

millions

accident losses from automo¬

bile

holds, next

provide such funds, you will

ership

9

& co.

cohu &

hfdoker & fay

wagenseller & durst. inc.

co?

formerly
Co. and

10

The

(2314)

Commercial and Financial Chronicle

.

..Thursday, December 1, 1955

.

NJ.SJ. Disiriel No. 8

From

Washington

Announces

Elediens;

Ahead

District No. 8 of the National As¬

of the News

sociation

Inc.. 'resided

By CARLISLE BARGERON

•

as

there

go,

appearances

few happier retired men

are

His

States.

daughter, whom he adores, is a successful
The old man spent a day not long ago
"Hours

book,

on

in

demand

at

and

Democratic

'

gatherings.
At

the

slightly past 70, having come up from
to reach the highest estate which'

politicians setk his advice

favor.

likes

He

travel

to

talk

to

and

give this advice.

T h

You

is

•

are

or

glad of t iis.

think that he

...

in

man

1952

quite sincere.

was

and

Mr.

"draft" him.
.

There

in that Convention

>

coyness

t:

.

the impression that Mr. Truman was deter¬
have his advice accepted by way of showing that he

to

hadn't lost his influence.

It

the price put upon

was

Boston
C.

Theo¬

Corporation;

President, T.

Henderson,

Co.

&

Lie.,

the

on

The

lican.

District

Committee

attack

Adlai's

on

16,

far

are

chance

a

is

of

Just

he

why

the most

unpopular

crats could

gamblers

on

FIF
444

TV. He then went out into several
a

sizable delegate vote.

son

Associa¬

i

and

Jess

—

William

joined

Manage^nt

the

,

C.

have the situation of where Adlai is an avowed
is likely to be an avowed candidate

been

added

others will be shooting

to

Iran

—

N.
the

Stu Symington of

and you will see more of his acting up with a
getting plucked.

Stiver

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

Jr.

have

and

Carter

OHIO

become

—

C.

William

Hugh
Crane,
with

affiliated

Saunders, Stiver & Co., Terminal
Tower

Shelley Roberts

Building, members of the

SAN

FRANCISCO,

Clarence

E.

CALIF.

Mullen

is

now

Management

of

BOULDER,
M.

Faulkner

Investment

COLO.
is

—

v

Allen

nold

cf Thrmson

Shelley, Roberts & Co. He
formerly with Coombs &

Company.

has

land

Company, 1921 Four¬

teenth Street.

.

W. V. Cadmus

business

with

9 Clinton street.




TRADERS CLUB OF CHICAGO

&

C.

C°nneH Adds

offices

at

pauj js
ert

j

n0w

-

Robert

445

teenth Street.

f

8i8

on

Traders As¬

Jan. 30, 1956, at the

,

SECURITY

Baltimore

TRADERS

ASSOCIATION

Security Traders Association will hold their
on

Jan. 27,

1956 at the Southern

been
&

NEW YORK

Team

Points

Serlen (Capt.), Gold, Krumholz,
Wechsler, Gersten
raneii, uieineiice, Lronick,

6hronicle)

—| Harry K. Ar¬
added to the staff

McKinnon, Shore-

Building.

(Special to The Financial Chronicle)

ST.

PETERSBURG,

Donald
Beil

B.

&

Avenue,

Chapman is

FLA.
now

37

Flanagan

Meyer (Capt.), Corby, A. Frankel, Swenson, Dawson-Smith
Growney (Capt.), Define, Alexander,
Montanye, Weseman
Manson (Capt.),
Jacobs, Barrett, Siegel, Yunker
Barker (Capt.),
Bernberg, H. Murphy, Whiting, McGovan__
Leinhardt (Capt.), Bies,
Pollack^ Kuehner, Fredericks
Donadio

(Capt.), Brown, Rappa, Seijas, Demaye
Bradley (Capt.), C. Murphy, Voccolli,
Rogers, Hunter
(Capt.), Gavin, Fitzpatrick, Valentine, Greenberg
Kaiser (Capt.),
Kullman, Werkmeister, O'Connor, Strauss__
Topol (Capt.), Eiger, Nieman,
Weissman, Forbes.'

—

with

Hough, Inc., 350 First
North, members of the

Midwest Stock

„

5

„

,

200 Point Club

<

Point

Club

Dawson

^.risam

Jack

Hoy Meyer

Exchange.

John B. Amos Opens
J.

associated with Rob-

connell, Inc

ASSOCIATION

Paul

Giles

(Special to The Financial Chronicle)

DENVER, COLO.

Chicago, Inc., will hold its Annual

f
Security Traders Association of New York, Inc. (STANY)
Bowling League standing as of Nov. 17, 1S55, are as follows:

Hamilton

Corporation,

Joins Beil & Hough

Realty and In¬
vestment
Corporation,
Shirley
Savoy Hotel Building.

Opens

from

Realty

.

NEWARK, N. J-William Van
R. Cadmus is conducting a securities

the A.

2, 1956, at the Bellevue-Stratford
luncheon and reception to be held at

a

Leone

DENVER, COLO. — James L.
McHugh
has
become
affiliated
with

March

on

with

SECURITY TRADERS ASSOCIATION OF

1

MIAMI, FLA.

(Special to The Financial Chronicle)

Howard

with

now

PHILADELPHIA

noon.

BALTIMORE

Melville R.

—

(Special to The Financial

—

staff of

With Allen Inv. Co.

dinner
p.m.,

21st Annual Mid-Winter Dinner

Midwest Stock Exchange.

(Special to The Financial Chronicle)

OF

Hotel.

Thomson & McKinnon

1

Wicks has joined the

Joins A. & C.

7

at

\

was

I

ASSOCIATION

Regular Meeting

.

CLEVELAND,

annual

Drake Hotel.

Grant Street.

Two With Saunders,

TRADERS

The Investment Traders Association of Philadelphia will hold

The National Committee cf the National
Security
sociation will hold their

1700

(Special to The Financial Chronicle)

DENVER, COLO.

of Symington

R.

12

Reservations should be made to Jack¬

Management

being mentioned in Washington. Congress hasn't been in session
Wait until it comes back and you will hear

With

meeting and election of officers will start at 5:30
by cocktails and dinner. Reservations should be

NATIONAL SECURITY TRADERS

Joins Hamilton

the rich but about as much of a
Several months ago his name was often

the

Dick, Jr., Beer & Company.

The

He is another darling of

to

on Jan. 30.
The dinner is preceded by
meeting of the National Committee of the NSTA and an inter¬
city bowling match.

M.

staff

nominations

week prior to the annual
for Dec. 9 in the Grill Room of the

the

Wilson

Strong and Co.,

set

one

Dinner at the Hotel Drake
..

Lorne

their

announce

The Bond Traders Club of

Corporation,

.

COLO.

and

Greenberg,
Broadway.

since last mid-summer.

view to

.

of

Greenberg, Strong

DENVER,
have

Kefauver

New Dealer as Harriman.

more

P.

BOND

F.

staff

Sherman Street.

Emeson

Out of the confusion watch out for Senator

has been

followed

Hotel,

at him from now on.

Missouri.

which

INVESTMENT

(Special to The Financial Chronicle)

themselves in the fun Kefauver was having.

against him soOn and Harriman and all the

the

COLO.

have

With

must

made not later than Dec. 5.

He

primaries because he was uncontested and the reason
he was uncontested was that the Democratic leaders never in¬
tended to nominate him and saw no reason why they should bestir
these

But you now

on

of

area

Christenson
Owens

and

The business
p.m.,

hold of¬

(Special to The Financial Chronicle)

Kefauver and lis friends base their chances upon the delegate
strength he produced at the Cf.icago National Convention in 1952.
Kefauver had become a great household name because of his so-

and

this

DENVER,

primaries uncontested and rolled up

officers

Capital City Club.

Two With FIF Management

pick.

called exposures of

the

election

board from this Dis¬
will

Bank,

According to the constitution and by-laws of the Association,
other five members of the Association may make nominations

their

South

V

candidate

in

representatives

Executive

any

Illinois, Iowa, In¬

others

the

for

are

.

from the Southern viewpoint the Demo¬

man

the

on

Taylor, Fulton National Bank, Atlanta, Ga.

tion.

Not only this, Kefauver, a Southerner, would be about

in the bag.

of

serve

Chisholm, Varnedoe, Chisholm & Company,
Savannah, Ga.

Jan.

commence

to

Frank A.

Secretary-Treasurer not later than

and the

fice

Assuming he is of towering national stature, which he isn't, he is
from a Southern State and the Democrats have not, since the Civil
War, gone South for their candidate, figuring they had the

those elected

and

years

one

trict

political mystsries.

the

terms for

the national

fantastic.

more

one

Frank E.

full

a

nominated
period:

Hugh

Milwaukee,
for

were
same

Lee, Wyatt, Neal & Waggoner, Atlanta, Ga.
Blackwood, Citizens & Southern National
Atlanta, Ga.

W.

1956.

be

greatest State in the world.

has

of

following

C. Martin, Jr.

Justus

Robert E.

diana, Michigan, Nebraska and
Wisconsin comprise District No. 8
of the Association. Mr.
Frye will

politicians who want to enrich either their own coffers or those
organization. What can't be escaped, though, and what
Harriman undoubtedly realizes, is that these politicians made him
ambitions

The

on

Dean

ex¬

President,

re-elected

The states of

With his wealth, he is looked upon as a gold mine

he

Co.

B.

Committee for the

will

presently is completing
unexpired portion of a term

All

their

think

James
n.

He

three

for

Kefauver's

u'

vacancy.

primaries against Adlai..
:
In the cynical political circles cf Washington, Harriman is
considered as being taken for a ride by the wily politicians sur¬

should

been

an

professed moderation. Senator Estes Kefauver
he is again a candidate and will enter

the Governor of the

Mlarshall

term.

has all but announced that

rounding him.

O'Keef,

has

without his party, has many
his every weakness.
Harriman has already opened a frontal

to ferret out and exploit

New York's Governor

h

-■'C,

v

H.

The

opposition, within and

mont's in which

tt

Morton,

Howp-H C

Robert

Adlai is out in front. He is the only announced
the Democratic side, or for that matter, the Repub¬

now,

candidate

.

D=.s

pire.

Well

won

are: v

Alfred R. Kramer whose terms

his support of

Adlai.

of

8

The foregoing succeed Arthur S.
Grossman, John D. McHugh and

You can't escape
mined

No.

Hovorka, Vice-Presi¬

Partner, McMaster Hutchinson &
Co., Chicago, 111.
.

■

_

Committee

Moines,

at the

that there would be no more

He told Adlai, and firmly, that he should an¬

hypocrisy.

nounce now.

P. Frye

Newton

Henderson

C.

disturb Mr. Truman

to

Robinson-Hum¬

dent and Manager at Chicago, Tne

quite annoyed when Adlai

that he would be "drafted."

or

The

Secrptarv-Treacurer—Edward R. Adams, Clement A. Evans &
Company, Inc.

of

Robert J.

dore

He set about this year to see

cf this

District

Bargeron

First

This lack of frankness seemed

time.

Carlisle

doubt about Adlai's

much

Jr.,

Central

the Democratic National Convention

never

was

Martin,

phrey Company, Inc.

Frye,

Adlai was his

Truman became

continued to act coy and let

P.

C.

Vice-President—Justus

New¬

Company,
Cmca&o. ivxx. Frye succeeds to the
place of George F. Noyes.
Tne newly elected members to

political Washington, there is wonderment why he pushed Adlai Stevenson into
an open Presidential race so soon.
You must

.

is

the

But in

•

President—James B. Dean, J. W. Tindall & Company.
w

e

Republic

of life

cut

n

Jolley, The Robinson-Humphrev Company, Chairman; Jack
Norris & Hirshberg; J. W. Means, Courts & Co.; R. c.

nominated to be officers of the Association for the year 1956:

mem¬

Chairman

and most
against him politically,.

kick

a

a

ton

to

get the impression that the old man

getting quite

people, whether for
,

and

e

ASSOCIATION

recent meeting of the Nominating Committee, composed

a

Mathews, Jr., Trust Company of Georgia; and J. S. Budd, Jr., Cit¬
izens & Southern National Bank, the following were unanimously

one

ber

'

Morris,

term.

Board

at least his

or

of

full

the American people can give a fellow citizen,
he is far from a has-been in retirement. Demo¬
cratic

of Lex

re-elec¬

member for

bottom

:

At

District

tion

himself

finds

GEORGIA SECURITY DEALERS

new

Committee

'

and

member

new

one

Governors,

the

Decision,"

of

Dealers,

Board

members

and TV performer.

autographing his

the

three

country today than Harry S. Truman, former President of

the United
radio

m

cn

of

Insofar
in the

Securities

of

Notes

NSTA

CHICAGO, 111.—The eleclion in

Seven_

COLUMBUS,
Amos

Ga.

—

John

Prize
B.

Winners

Russ

For

Yunker

409

Barrett

Building.

406

Bob

405

202
200

Montanye. 200

423

Hank Gersten...

SmUh_ 209

Fredericks.

Turkey

is engaging in a securities
business from offices in the Swift

Topol

.

Barker

'I

31V2
30V2

29^2
29
29
28
27

241/2
22
22
20

Number 5486

182

Volume

.

.

.

The Commercial and
Financial Chronicle

(2315)
\

this, doesn't

Basic Principles of Reserve's

1928

at

time

that

and

wasn't

the

University

stock

market

12, 15, and

Edwards describes the functions and operations of a
central bank —as represented by our Federal Reserve
Prof.

result

and

money market, the Federal Reserve could
the sPuation, but for obvious
reasons, has
chosen not to do so.
Contends Federal Reserve cannot hold

review
briefly what the Federal Reserve

make

System is trying to do in the cur¬
rent business situation, to explain

away

been

to

asked

these

from

the

inant force in
the effect

actions

tion

to|produce in

other

money

markets,

which

and

the

central

uation

that all banks

the

of

able
:

the

of

terms

fives

What

I

to

stage for the
follow.
make

the

reduces

tem

a

I

have

will

some¬

thing to say about home mortgag¬
ing lending.

let's agree that un¬
der our present laws and system
of government, the Federal Re¬
serve
System is responsible for
using its powers to maintain eco¬
First of all,

nomic

activity

with

minimum of inflation.

a

at

level,

high

a

understand what the Fed is

do

to

must

we

To

trying

recognize that the

Fed will be blamed for any infla¬
tion

that

develops,

for any
in busi¬

or

downturn that may occur

activity. If by any chance
prosperity should de¬
velop into a "boom and bust" situ¬
ation, stimulated on the upside by
rapid credit expansion and on the
ness

current

our

downside by excessive liquidation,
we
would all hold the Federal

Reserve responsible.

if

had

you

bank

expan¬

there is

rates

a

in¬

an

Unless

some

ac¬

rise

and

will

Theo¬

will

rates

demand

point where

rise

borrowing
loans

for

to

loans balance

new

with repayments of old loans.

This,

of

could

prevent

credit

actually

course,

expansion

of

needed to

keep the economy roll¬
ing, thus bringing a downturn in
business activity. For that reason,
the central bank—in this country
the Federal Reserve—may decide

that

expansion is desirable.

some

By making additional funds avail¬
able to the banks, interest rates
loans

Wouldn't

try to keep the boom from
getting out of hand?
Wouldn't

requirements,

but

for

been

loans

are
a

which

100%

and

would

could

be

that

mean

This
me

Mortgage Debt

might be

good

a

not

hold

down

be

disturbed

by

the

does' the

How

make

Fed

tional funds available?

lending terms just
Korean War.

as

spot for

biles

on

have

the most liberal terms we

known?—for

ever

chase

of

highest prices
the

the

ever

pur¬

at

stocks

common

purchase of homes when
home

present

the

recorded?—for
debt

mortgage

the
is

nearing $100 billion?-

Here's why.
In

the

>

.

first

do

purchase
the

tend

of

to

construction

More

iegal

the

(thus
into

believe that any of us, if we
Were members of the Board
of

Governors, would be trying right
now

to

hold

the

boom

check

in

excess

Usually in

or

legal

available reserves),

bonds.

(The purchase of bonds in¬
bank

reserves

the

whom

Fed

no

not, however, I think
agree that this is what the
Fed is trying to do, and that the
Board of Governors has wide¬
We can

spread support of its

policies.

Bank

of

Control

Money Markets

Fundamentally,
has
the

only

one

money

way

today's

Since

buys.

Be Done

of controlling

markets.

That

*Remarks made by Professor
3t

the

the

open

Federal

is to

Edwards

meeting of the Committee on
Home
Loan
Bank -System,

Pnited States Savings and Loan League,
Miami Beach, Florida, Nov. 7, 1955.




little

or

in the direc¬

designed, better lo¬

mortgage

to any

of

suggested,

however, since the FHA and VA
have

all

the

needed

power

money

market which

could, if it wished,
encourage
banks to borrow by
lowering the discount rate at the
various Federal Reserve banks. It

market

allocated

Why

should

they

freedom

and

from

able one. Perhaps the Fed is over¬
ly concerned about the rising home
mortgage debt.
However, I was
asked to explain what the Fed is

doing,

not

give

to

my

might be doing.
If the

require¬
buy government

Federal Reserve is

trying to restrict credit, the FHA
and VA ought to help, not hinder.
They should at least be as good

citizens
Bank

as

the Federal Home Loan

Board.

'

Goldman, Sachs Will
Admit New Partners
On Jan.

1, Miles J. Cruickshank,
John L. Wein¬

L. LaVerne Horton,

berg and John C. Whitehead will
be
admitted
to
partnership
in

Goldman, Sachs & Co., 30 Pine
Street, New York City, members
of the New York Stock Exchange.

Three New Partners

Conclusions

conclusions

Burnham & Go. Admits

thus

that

are

Burnham

and

Company,

It

could

bonds. If it did these things,

City,

members of the New York

Stock

mortgage market, Federal

New

Reserve policy can be

effective in Exchange/on Jan. 1 will admit
controlling credit expansion. Tight Joseph Kirchheimer, Michael
money
will
restrict the funds Schneider and Robert E. Linton
going into mortgages, and if mort¬ to partnership.
<:

homes.

,

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

an

any

of these securities.

NEW ISSUE

$4,000,000

Lincoln Service Corporation
5!/2% Twelve Year Sinking Fund Capital Debentures
Dated December 1, 1955
9

,

i

,.
■

-1st-- I

Jk

.

■

Due December 1, 1967
'

may

he obtained from the undersigned only in such States where the

legally offer these Securities in compliance with the securities laws thereof.

Union Securities Corporation

Johnston, Lemon & Co.

havg

plenty

of

money

to

prices would rise. All de¬
mands for loans could be met and
bond

we

could be off on our merry way.

biggest credit expansion of
But the Fed has chosen

raise

to

discount

rates

H. P. Wood & Co.

thus

dis¬

R. S. Dickson &

to keep

legal reserve requirements

levels, and to buy only
government bonds

First Securities Corporation

Company

Durham,

Incorporated

G. H. Walker & Co.

Goodwyn & Olds

N.

C.

Jones, Kreeger & Hewitt

Mackall & Coe

Mason-Hagan, Inc.
Doolittle & Co.

Chace, Whiteside, West & Winslow
Incorporated

couraging banks from borrowing;
at present

Auchincloss, Parker & Redpath

-

banks

loan, interest rates would fall, and

,

Scott, Horner & Mason, Inc.

Clement A. Evans & Co.
Incorporated

that amount of
which will

I

tant

keep the money mar¬

can

we

see

now

that

in

the

central bank's

C. F. Cassell & Co.,

Irving J. Rice & Company

Inc.

Incorporated

Rising interest
rates are supposed to weed out the
less desirable loans, and to dis¬
courage

Barrett & Company

Stirling, Morris & Company

rates hold a very impor¬

place

control

for

Rouse, Brewer & Becker

Stein Bros. & Boyce

tight, but not too tight.
believe

powers.

the use of borrowed funds

speculation rather than pro¬

ductive purposes.

Unfortunately,

C. T. Williams & Co.
Incorporated

November 29, 1955

15

York

anteed

Street,

could reduce legal reserve
ments.

on

My point

Broad

The

may

views

except for; the insured and guar¬

and

Copies of the Prospectus

political

I

do not know.
Nor, for that matter, do I know
that the objective itself is a desir¬

pressure,

be

Sam has insured the

risk?

important, the demand for

undersigned

to

accomplish this objective. Whether
have the necessary judg¬

greater extent on the basis

merit.

when Uncle

My

most

con¬

assurance

knows that funds aren't

these

mort¬

on

not

in Tight

is tight, the Fed

interest

central bank

a

is

controls
are

Money Market
In

kets

Central

design,

better constructed

and

guaranteed

restrict both the

new

in

assurance

placed

Price 97.85% and Accrued Interest
Can

What

to the

or

of

be

matter

all times.

would

there

}

Bank).

a

We

a

agencies.

homes

factor

into

reserves

purchasing' government

and

thus prolong it and prevent
disastrous liquidation after the
boom runs its course.
Whether

as

Any one who knows any¬
thing at all about the insured and

requirement

reserve

converting

from

standards

V

of

concerned

are

houses?

direct

addi¬

by

or

we

tion of better

cated

place, the demand

existing

see,
however,
of the most ef¬

will

credit

is this:

If

better credit risks

for, mortgage money is not basi-«
cally speculative.*^Higher interest
rates

to

use

that funds will flow either to the

it did in the

government

yet

any

going

governmental

what it

to the banks, by reducing

money

would

I

can¬

controls, assuming cooperation
other

if

in which

mortgage

such

have

their

I don't want to say

without

when

being tight¬

struction and location? Why leave
control to a tight money market

that, however, because I believe
that the Fed could accomplish its
objectives

time

a

,

expansion of
debt merely by
markets
tight,

control

minor

a

of three ways—by loaning

any one

heavy

borrowing for inventory accumu¬
lation?—for purchase of automo¬

col¬

the

to

power

at

-

policy with the
rapidly mounting debt on homes,
and are afraid of a subsequent pe¬
riod of liquidation and foreclosure,
why don't the FHA
and
VA
tighten up on their appraisals,

mortgage
making
money
Congress may again give the Fed
the

payments

matter of national

-vr

to suggest that if the Fed

mortgages

have.

again,

-

funds'

fective controls the FHA and VA

The Federal Reserve and Home

you

you

I

lateral loans could be made at all
for purchase of stocks.

v'

down

shortening of maturities

summer

much

not

no

in

ened.

made by brokers.
70% but they have

now

is

tight money offers little

gage

money markets were

a

This advertisement is neither

be made.

can

the

last

"

would it
pays by check drawn on a Fed¬
you be doing right now when the
eral Reserve Bank, the seller of
record of the economy shows full
the bonds deposits the check in
employment, upward pressure on his bank which in turn deposits
prices, and rapidly increasing per¬ the check with its Federal Reserve
sonal and business debt?

margin

risk

check and needed

be held in

can

increase

and

think

have

now

the

the demand.

the

only for loans made by banks

from

What

responsibility?

control

•

the

We

home

takes

interest
the

creases

What would you do
this

legal

such

no

until the higher cost of

the Federal Home Loan Bank Sys¬

although

Fed

supply of funds in

market, and FIIA and VA

consistent, the best example being

happen

collateral

These

no

In

be

can

assume

interest

retically,

to

whatever

their

above

the price of bonds will fall.

will

I

reason,

reference

the

Since

More recently, however, their pol¬
they
icies' have been somewhat more,
ment

the power

available

no

requirements.

central

tion,

discussion that will
that

For
no

has

creased demand for loans.

^he

se{;

and

over

Now let's

Wel1'

^

does

reserves.

set

not

is

sion of bank loans.

if I do

say,

^

F
F
F
E. E. Edwards

Prnf
Pr f.

have

situation, there

have

to

con¬

All too often the three agencies
not
cooperated very well.

year

over

to

Suppose
fully loaned up,

are

they

reserve

objec-,
sought.

this

find the greatest para¬

have

boom, followed by

wants

the

control

how it works.

see

is,

funds

the

to

in

Fed

a

funds into the better risks.

advantageously for our long run
economic
development.
Further

shut

was

guaran¬

insured and guaranteed
mortgages,

we

money

ex¬

1929 will
as

or

that

trols

channels
basic

insured

market. The Federal Reserve

"

that

controls avail¬

for

consequence,

Nor

"direct"

direct control.

Let's

speculative

aren't

gages

teed, lending institutions will, for
their own
protection, direct their

dox in the whole field of govern¬
ment
controls
over
the
money

funds

loans, and the Fed has

dom¬

banks

bank

Here

to

can

bank

to
spread
quickly to
financial institutions, over

to at¬
tempt an eval¬

finally

eral terms.

prevent it just by exercis¬
ing its basic weapon of controlling

expected

the

it

money markets,
central bank opera¬

commercial

a

one

again.

our

of

the

in

No

com¬

a

As

guarantee of loans with very lib¬

the biggest bust of all time.

Because

such

are

rates

available

needed

of speculative

reserves

banks.

commercial banks

supposed

are

to

mercial banks and to take

effects

what

available

reserves

care

always be remembered

of home mortgage debt by making money
markets tight, but such objective could be obtained by it
with the cooperation of other Government agencies.
have

into

credit

cff.

ease

down the expansion

I

ing loans except for the stimula¬
tion by government insurance and

Since spec¬
about rate, the

pansion of the economy

today's tight

out, in

take action to

forced

that

was

flowed

markets. Points

money

mortgage money probably would
not equal the repayments on exist¬

liberal

19%.

even

ulators didn't

in controlling credit and the

too

making reserves available to
banking system. Interest rates
were
high and the growing de¬
mand for collateral loans to
play

Professor of Finance

—

Let's

The Fed

the

By EDWARD E. EDWARDS*

System

1929.

in

Monetary and Credit Policy
School of Business, Indiana

always happen.

consider

11

'

•

12

billion

The

Mortgage MarketToday and Tomorrow
By MILES L. COLEAN*

of

mained
The

loans

warehousing

available.

began

spring

with

to

further

tightening up
felt by late

taken

been

they

FNMA will soon go into the

short-

debenture is¬

the

of providing

for

the current "lush year" of the mortgage

on

sible. A

cause

restrictions to be the

of

for the recent government credit

unusually heavy resort to bank credit,

unusually vulnerable to shift in monetary policy. Says that
rigors may be softened. Reviews recent policies of lending
agencies, and

the policy decisions that will be made

says

within next few months will be crucial.

requests

have

Sees need for realign¬

down

no

To

The

mortgage market is said to

in

loans

Bank

trouble.

for

mortgage account are
hard—some would say impossible
—to get. Mort¬
carrying

other actions were

a

gage

compa¬

nies,

caught

with loan! for
which

no

mutual

savings' bank mortgage
is almost 25% greater

holdings

this year than last.
This

has

year.

view

those

of

who

have

the

sponsibility of keeping the
omy

on

more

less

or

keel, it has been

an

little

a

re¬

econ¬
even

too

im¬

was

not

p e r m a n

ent

pressive.

financing

had

only with the exuberance of the
mortgage market but with the

been

ar¬

ranged,

are

Their

pay

situations

painful

dis¬

credit

port

folio

lenders.

prices

Some

savings

have
Miles

L.

had

to

sell mortgages
in order to. get

Colean

funds to meet commitments. Down

payments

and

maturities

being
asked by lenders are much tougher
than required by the regulations.
Construction money is scarce. Ad¬
vance

commitments

year's
trees

building

are

for

as

Park Avenue.

on

this

as

Uncertainty

trouble.

certainly

But

it

is

looks

are

like

of trouble. It is the sort of trouble
that can come only, to a

richly

fed—perhaps

an

It

of

is

kind

a

burn

that

feeding

overfed—market.

monetary

results

but go

through with it, al¬

though at this time

a
little elcobicarbonate of soda would

nomic
be

admittedly welcome.
mortgage market has

The

had such
It

is

a

lush

a

year

that

year

never

this

as

has

had

one.

to

as

approached

we

its

threshold 11 months ago, no one
that I know of predicted so
rapid
or
so
fulsome an advance as we
have

experienced.

Here

just

are

few of the aspects of this ex¬
pansion that bear on the mortgage
a

situation.

Although
houses

the

number

started

short

of

about

1.3

will

be

the

record,
million, be

it

of

new

little

a

will,

good

a

at

sec¬

ond

best, and the dollar volume
spent in getting it built, at around
$14.6 billion, will be the highest
ever.

all

New private construction

types

will

be

at

high: $29.5 billion,

an

14%

or

of

all-time
more

than

in 1954. Public construction
will also top previous
records, the
whole coming close to

$42 billion.

Mortgage recordings are run¬
ning 34% above last year. Record¬
ings in August were at an all-time
high for any month; and the year
will

probably ring

up a

total close

to $30 billion. Life
insurance

com¬

pany

investment of all kinds

more

than

farm

mortgage
acquisitions, at
billion
so
far, were 30%
ahead. Savings and loan associa¬
tions have put $8.0 billion
into
$3.8

amount

of

increase

in

*An address
ing

of

tional

New

the

by Mr. Colean at a meetMortgage Council of the Na.

Association
York

City,

of

Real

Nov. 7,




Estate
1955.

Boards,

the

of

which, because

move

a

—

their

deliberalize

to

istration

terms

tightening

that

credit

of

had

previously taken place and
the large volume of outstanding
commitments, had little separate
immediate
meaning. The
other
two
made apparently indepen¬
dently and without prior discus¬
sion or approval — threatened to
have plenty of meaning for both
the present and the future.
—

First, the President of the Fed¬
eral

what

made

inter¬

widely

was

York

a
strong admonition
further
extensions
of

preted
against
credit

New

of

Bank

Reserve

as

for

warehousing

purposes.

aridity in the short-term
followed, accompanied by
considerable discomfort not only

to

mortgage

to

savings

business

a

—

or

:

consumers,

more

with/the

current

availability of savings. I shall not
go into these in detail
to

explore
It

est.

is

effects
I

on

on

nor

attempt
beyond

impacts

immediate

our

enough to

have been

inter¬

that the

say

severe—and

as

inclined to say more severe
the mortgage sector than

am

—

their

of

area

other.

any

Shifts
The

in

Monetary
for

reason

this

Policy

itself

companies but also
institutions that faced

problem of validating outstand¬

ing commitments. .
Second, the Chairman of the
Home Loan Bank Board indicated
.

from

advances

further

that

the

Home Loan Banks for the purpose
of

expanding loan activity would
available.

be

not

There

was

at

inference that outstand¬

least the

ing advances should be curtailed.
September, when the System
claimed a need for over $300 mil¬

is that,

lion

by

unusually -vulnerable

to shifts in
monetary

policy. Dur¬
ing the latter part of 1954 and the

to

meet

million

$75

an
unusually heavy resort to bank
credit,; the mortgage market had

made

market

In

Mortgage Market Vulnerable to

commitments,
supplied.

was

institutions

member

only
Some

became

so

pressed as to be forced to sell gov¬
bonds

ernment

half of 1955, life insurance
companies, mutual savings banks,
and savings and loan associations
all

found

the

demands for mort¬

cope

stronger than they could
with their own funds. To

meet

the

gages

the

was

business

their

own

they could

money,

institutions,
another,

between the busi¬
available and

gap

that

ness

by

do

with

of these

many

device

one

supplemented

or

their

in¬

Softened

More

recently, however, the in¬
are that the rigors may
be to some degree softened.
The
dications

President
eral

of

the

New

York

Bank, in a letter to
Congressman Rains of the House
Banking and Currency Commit¬
tee,- endeavored
to
clarify
his
position, "My cautionary talks with
of the commercial banks in

some

of bank credit und®r the general
of
caption
'warehousing
mort¬
gages,' not to the appropriate and
customary uses of bank credit in

Under

the

"warehousing,"

surance

banks

companies

general

had

we

and

in¬

savings

either

selling loans to the
under a buy-back
agree¬
or
making
commitments

banks
ment

well in advance to their

mortgage

loan

correspondents who in turn
borrowed from the banks until
the loans were taken
up by their

principals.

We

had

savings and
loan associations
greatly expand¬
ing their mortgage activity by in¬
creasing their borrowings from
the Home Loan
number

of

borrowed
banks
ments

Banks. Finally, a

mortgage
from

the

without
from

companies
commercial

having

permanent

corumit-

-„

By

total

the'

mortgage market was close to
$2.6 billion. The increase in the
of short-term

amount

time

probable
Sage

credit

outstanding

a

year

ago

or around

total

be

±

present
commitments

for

at

was

of

done
t

year.

over

the

about

4.5% of the

amount

lending to
~

"re¬
use

financing the homebuilding indus¬
try." The "abuses" apparently are
as

"an

diversion

of

mortgage

market

for

bank

savings."

against
made,

extraordinary

credit
as

a

into

the

substitute

The customary uses,

which

no

to be

seem

complaint
is
those for con¬

decisions

policy

••"//

that

general health of the economy de¬
further astringent
treat¬

ment, the shrinkage is more likely
to occur in house-building than in
other kinds of
other

credit

construction,

of the economy,

areas

either

not

are

do

not

rates

in
which
or

dependent

so

In

mort-

do

about

When,

a

count

on

higher

their

the next

discount

few weeks.

short time ago, the dis¬

Treasury

than

the

bills

Reserve

went
Banks'

discount

own

rates, the situation
ordinarily be set for a

would

certainly suggest

that the period of restriction
to be further
look

as

if

the

rate

line,

l.

•

addition,

another

institutions

$1.26

out

predicament.
arrangements

warehousing
of

New York

of

The

members

the

for

a

$250
on

the

present

completion

operation

in

makes
ease

their

of

million
behalf

State savings banks
the time of the

about

Federal Reserve admonition—will

similar purpose.
Finally, the Federal National

serve

a

ity

prevent

and such provision
to be currently being
made.

squeeze;

seems

A

ment market cannot

lation of

savings needs to be made.
The occasion for this realignment
been brought about/ fortu¬

has

nately enough, before the dispar¬
ity between investment and sav¬
ings
had
become
dangerously
great.
In
all
probability,
the
needed adjustments can be made

be

available, and builders should
with confidence
though perhaps not with exuber¬
be able to proceed

Next

ance.

another

is certain to be
for
both
and it
it will be a good year

year

good

year

builders and mortgage men;
follows that

real

for

estate

men

also.

House¬

not reach the same
level it will come to in 1955; but
building

may

it

short

this

of

much

likely to fall

neither.is

satisfactory

very

performance.

W. E, Auch

any

case

irrespective of

—

future monetary policy—the mort¬
gage market is certain to have at
least

large a volume of funds
its disposal in 1956 as in
1955,

at

as

the prospect is that it will be
greater, The increased growth in
the life insurance and
savings and
loan areas alone—even
assuming
and

increase in rate of growth over
that from 1953 to 1954 and
from
no

1954

to

1955

should

—

be

more

than

enough to make up for any
probable reduction in the amount
of short-term funds
available for
the

expansion

of

mortgage

lend¬

ing.

DETROIT, Mich.—Bache & Co-,
members of the New York Stock

Exchange

leading se¬
exchanges,

other

and

curities and commodity
&

need-

n n o u

1

*

today

that
Walter E.

Auch

has

joined
firm

the

as

asso¬

ciate

manager
their
De¬

of

troit

office

which

located

is

in

the

Penobscot

Building.

The

large

increases

income

during
and

Mgr.

Bache in Detroit

Available
In

that

1955,

in

have

the

wage
the virtual

prospect
cf
increases in 1956,

certainty of

next year in the

should

in

of

Moreover,

have

cut

a

Federal personal

tax, should result

accumulation

more

Mr.

dispos¬

occurred

than this.

November,

not

be raised.

savings in
siderably larger volume next

clear that it will at least

from

Large Amount of Mortgage Funds

a

its

was

would

Loan

Bank
System,
by
total of $440 million of

outstanding
to

lending
institutions
suffering any serious liquid¬

prolonged. It begins

to

raising

—initiated

during

on

more

are

within

income

money for
October
and

and

mortgage

readily able to
in
sufficient time to prevent a
pay a high price for money. If, on
the other hand, the conclusion is serious curtailment of lending and
that restraint has gone far enough, building in the first part of 1956.
then, whether the monetary policy
Nevertheless, it cannot be con¬
becomes
neutral or
indulges in templated that 1956 will start off
even slight ease, it should be pos¬
with quite the buoyancy of the
sible for the mortgage and build¬
early months of 1955, any more
ing interests to adapt themselves than it can be expected that credit
sufficiently rapidly to a changing in early 1956 will be as loose as
atmosphere to get the next build¬ it was in early 1955. By com¬
ing season off to a fairly good parison, credit will still be tight.
start.
But a more orderly flow of funds
The tip-off may come from what should
have been
restored, ad¬
the Federal Reserve Banks do or vances commitments should
again
or

squeeze.

new

commitments

are

mands

further

parallel

provide the

funds needed to honor

term

facilitating the closing and de¬
livery of mortgages, and for help¬
ing institutions out of a liquidity
a

to

upon

safely expand
indefinitely on the basis of shortcredit, and that some real¬
made this month and next will be
crucial. If it is concluded that the ignment with the actual accumu¬
/

>

The

able

Adopting

.

Reserve
banking system can

The

counted

„

places.

struction purposes, for the accom¬
modation of mortgage lenders in

investors.

the

summer,

amount of short-term funds in

the

he wrote,

lated to possible abuses in the

to be defined

be

Realignment of Short-and
confidently firm their plans
Long Term Credit Needed
for 1956. The question is, will the
What we are in is one of
those
time be brought close enough to
periods
of
credit
readjustment
prevent a serious downturn in
that a free market must be
ex¬
housebuilding • next
year?
The
pected to encounter from time to
question is certainly a debatable
time.
It
should
be
generally
one; and I do not doubt that it is
agreed that a long-term invest¬
being gravely debated in high

Home

late

volume

community,"

policy.

builders

and

future

the

in

S

becoming outright
inflation.

Fed¬

Reserve

ing

system.

terest

reflection

may

count rate would

Rigors Being

this

term,

help along the process of digesting
this year's extraordinary volume
of "activity and hence bring closer
the time when the savings institu¬
tions will have a more eager in¬

mortgages to boost in rate. While such an ac¬
meet current obligations, an action tion
might not alwavs mark a
which further depressed an ^al¬ critical
point in policy, at this
time a raise in the Reserve dis¬
ready heavily discounted market.

resources with funds bor¬
rowed from the commercial bank¬

ternal

-

sober

short-term

to

serve

or

first

same

last

the instruction to

was

A great

$1.3 billion,

The

in

This

HHFA, and Veterans Admin¬

long series of actions, mainly
by the Treasury or the Federal
Reserve, followed
all aimed at
bringing investment, whether by

mortgages during the first eight
year.

be

A

months—a 42%

over

to

was

10% ahead of 1954 for
the first eight months. Their
non-

increase

commodities

considered

were

be

lived through to be believed. Cer¬

tainly,

industrial

the

ministration policy in the highest
sense.

the

order.

tem¬

digestion, and there isn't anything
do

and

restraining

forced

loans

porarily beyond the absorptive
capacity of long-term savings. We
are
going through a period of
to

markets

sup¬

particularly, building mate¬

actions

heart¬

from

of long-term

in

these

of

bank

as

rials and construction costs
began
to turn upward, some

the

peculiar sort

a

and,

and,

expanded

next closely in line

scarce

clouds the future and builders
filled with apprehension...
All

of

credit

consumer

well;

as

rapidly

counts to port¬

institutions

concern

stock market and

having to

considered ad¬

the

certainly been an im¬
From the point of

pressive

impact,. three
taken, only one

sharpen

should

moves

prevent the monetary brakes from
freezing. They should materially

payment.

of which could be

of short- and long-term credit terms.

ment

These

On

funds, despite the common
misin¬
terpretation of Federal

Freezing

From

tn

iphibitive than
widely considered

The mortgage market
is not to
be wholly deprived of

Prevented

Brakes

Monetary

may prove

less

now

expansion

from

for hard-pressed builders
and mortgage companies.

However, the volume of loans al¬
ready committed on was so high
that, even today, 44% of all/VA
loans being closed still have ma¬
turities of over 25 years and 40%

and, because of this, the mortgage market had made itself

purpose

money

sharp drop in the number
for VA appraisals on
proposed homes occurred in June.

mar¬

ket, Mt. Colean finds

sue

be.

to

that

term market with a

are

to date

1^955

should be obvious that
no respon
sible
authority desires to end
economic
expansion, nor to dn
more
than to prevent

institutional funds. It

moreover,

super-liberal terms then permis¬

Commenting

has

understood

is,

the

on

been
have

industry for

discounts

commitments

Thursday, December

.

abandoning its liquidation opera¬
tion in order not to compete with

guaranteed loans and increas¬

on

.

an¬

is

it

that

nounced

be

mounting

.

temporarily

Association

Mortgage

re¬
•

-

...

of

process

credit

■

ing reluctance of lenders to make

Washington, D. C.

be

Financial Chronicle

The Commercial and

(2316)

the
con¬

year

families

Auch

brings

to

new

post

his
Walter

extensive

experience

Auch

E.

in

the

brokerage business where he
on the recruiting and
training of young men and tne

concentrated

educational
ment

of the

phase

invest¬

business, and in the auto¬
industry as well. In 195z-

higher
payments
and
higher
monthly charges than appeared to
be the case in
early 1955 when

mobile

housebuilding

Treasurer

funds

for

down

was

riding the

easy

Added to all this is
no

further

the proba¬

restraining
during

credit action will be taken
the remainder of

the

also

possible

analysis,

such

he

was

elected

Michigan

vestor's

Brokers,
of

President of

Association
the

of Ifl"

and SecretaryNational Asso¬

ciation of Customer's Brokers.

money wave.

bility that

53

the

that,

year.

in the
actions
as

It

is

Joins Arthur Fells
KANSAS CITY,

Mo.—Joseph S.

Turner has become affiliated

final

Arthur

have

Company,

Fels

Bond

&

935 Walnut

with

Mortgag

Street.

VAlume 182

Number 5486

...

The Commercial and
Financial Chronicle

f

force is expected to grow
by only
7% and the number in the 25 to

A Greater Period

45 age group will not
grow at all.

01

This latter

Prosperity Ahead

result of the low birth rate
during
1930's.
This group will be

passing the 25-year
1955 through 1965.

hower was
concern

a

cause

com¬

However, it is

clear that

now

reaction

the

temporary

and

growth

The

ground
the

in

pression

has

in

drop'

Harry A. Bullis

Gross; National
on

an

Product

annual

basis.

accounted

This

for,.

,

and

caused

by, the, reduction in ex¬
penditures for defense, together
with reductions in inventories.
cash

The

tion

can

ex¬

present

will

momentum

continue

into

of

1956

"Survey of Cur¬

consolidated

budget

equipment,

orders

new

re¬

ceived by manufacturers have
the

ceeded

the

1954,

of

rate

rate

deliveries.

deliveries

of

ceeded the rate of

new

ex¬

In
ex¬

orders be¬

ing received.
the

In

same

of

ment
well

The

We

metal producing industries,
in machinery and in transporta¬

decline

was

$392 billion.

mary

$370 billion to about $355

billion

this year and the advance

Business," the Department of
Commerce shows that in the pri¬

marked

from

of

issue, the Depart¬

Commerce

shows

how

"compensation to employees"

has been maintained.

has been approximately in balance
for the past ten years, and there¬

come.

fore it

This is the

workers' share of the national in¬

Disposable income

rose

by

possible to make sub¬

the amount of the 1954 tax reduc¬

stantial reduction in taxes starting
Jan. 1, 1954.
That tax reduction

tion, and it is still rising, as the
result
of
wage
increases
and

stimulated the economy, and total

higher employment.

was

increased in 1956.
Purchases of
producers' durable goods advanced
substantially in the first part of

celerating. At the
in

family expenditures continued up¬
ward through every quarter of

ac¬

the

piling of inventories
quarter of this year

third

than in the second quarter.

Thus, two possible sources of
future; weakening
of
business
to have been removed.

seem

first might be described
of

ure

business

as

The

"fail¬

capital for¬
mation." The second is the possi¬
bility of a change from a high
rate of inventory accumulation to
a period of
inventory liquidation.
new

For

What
into

other

could

be the

debts

at

longer run, the pres¬
upon
business to enlarge

There

of

and

a

fear of the
American

of

fear of the debt of the

a

growing

debt

of

grow

to be

seems

consumers

ments

years,

vigorous

will

lead

not

authorities

to
are

the

take

leads

the

to

innovation

better

houses,
automobiles, and

So

we

debt

that

the

and

in

and
new and

the

phenomena, which I might

characterize
of

the vigorous spirit

as

monetary

enterprise and innovation that

monetary

realize

that

a

population

will

expansion; that the American fam¬
ily ranks second only to the Gov¬
itself

ernment

as

a

borrower

of

will

be

underwritten

by
syndicate

and

Exchange Commission cover¬

ing a proposed public offering in
the United States of $50,000,000 of

The ad¬ twenty-five year debentures of
production, incomes, and the Quebec Hydro-Electric Com¬
The debentures, which
employment that we will enjoy mission.
for the next ten years, depends to will be guaranteed uncondition¬
a great extent
upon how well our ally as to principal and interest
monetary authorities arrange a by the Province of Quebec,
needed flow of credit, and how Canada,
are
expected, to be
well we all accept a needed en¬ brought to market before the end
of this year.
largement of debt.
The First Boston
I believe we will continue to Corporation and A. E. Ames & Co.
expand the tools which industry Incorporated are named as man¬
places in the hands of the Ameri¬ aging underwriters,
workers.

can

find

And I think

will

we

to provide adequate
that consumers can con¬

ways

credit

The

Commission^ an agency of

the Crown created in 1944 to. gen¬

acquire, sell, transmit and
and gas
industry. I am sure that we throughout the Province, will use
will also continue to expand our the proceeds from the debenture
output so as to stop any threat sale to repay $8,000,000 in bank
of inflation.
advances and to finance, in part,
This all means that we are on its construction program for the
the threshold of the greatest pe¬ period September, 1955 through
riod of prosperity America has the
year
1962.
Approximately
ever known.
$495,000,000 has been estimated as
the cost of the program, the prin¬
so

tinue to purchase the full output

erate,

distribute electric power

of

Morgan Stanley Will
Admit Three Partners
Moore

P.

Lemkau

and

the firm.
■

.

I

:

'

;

With R. S. Dickson & Co.

cipal item of which is the devel¬
opment of the, Commission's proj¬
ect on the Bersimis River flowing
into the St. Lawrence some 200
below

miles

G.

Co., Wilder

Bache Adds

a large hydro¬
correlating the
power resources of the Province
which, including existing installa¬
tions, are estimated at 20,000,000
kws. with adequate water storage
program for
electric
system

facilities.

CORRECTION
In

Nov.

Financial Chronicle of
it
was
reported
that

the
17

(Special to The Financial Chronicle)

Smith

is

&

now

Co.,

108

Carl

affiliated

with

Market

Mr.

Co.,

with which he has been associated

the

for

;past" 15
with

remain

Street.

error.

with McMaster < Hutchinson &

—

West

in

was

of Chicago. This
Bird is still

Inc.

Associates,

Staff

to

GREENSBORO, N. C.
Bache

The

George E. Bird had become asso¬
ciated with Insured Investments

Building.

W.

City.

the

CHARLOTTE, N. C. — Richard
Glasgow has become connected

with R. S. Dickson &

Quebec

project is expected to have an ul¬
timate installed capacity of 1,400,000 kilowatts and is a vital part of

(Special to The Financial Chronicle)

growing

debt is inseparable from economic

Issue

First Boston-A. E. Ames

in

vance

au¬

that

To Be Sold in the U. S.

features America today.

steps

our

Quebec Pwr. Agency

A
registration statement was
of the filed Nov. 25 with the Securities

and better goods are parts
same

Of

new

growth of
production of new

see

$50 Million Debentures

same

better foods.

beyond
really necessary. It

is believed that
thorities

in

.business

of

It is assumed that this

America.

reveals

by 17% during the next ten
the number in the labor

of

rate

and

new

better

growth of debt—a fear of the debt

those that

total

which

Huffman, Hudson B.
Charles F. Morgan
of 8 million automobiles per year on Jan. 1 will
become partners in
compared with a production of Morgan Stanley & Co., 2 Wall St.,
4 million cars per year.
New York City, members of the
New York Stock Exchange. Mr.
Need for Growth of Credit
Lemkau is syndicate manager for

population growth indicate a total
of 193 million in 1965, and 228
million by 1975. The breakdown
the

by
As total busi¬

loans

growth of debt. We have the

of

and equipment. As a result, both
individual and corporate incomes
have improved and total tax pay¬

While

warranted

tions, but back of it is invention
and innovation, creating a demand
for

grows,

ances

fear

estimates

allow for

to

it needs larger bal¬
working capital. These
must be much larger, for instance,
to finance the production and sale
ness

families,

the

these

rate

a

business expansion.

capital expenditures will continue
to be heavy.
New estimates of

sufficiently so
that the budget is in a position of
balance, despite the tax cuts. This
accomplishment of the Eisenhower

failure

ex¬

a cause

expansion of bank deposits and

an

sures

risen

come

check the

to

pansion of business? Such

profits tax encouraged busi¬
ness to maintain and
expand total
expenditures for new tools, plants
cess

might

cause

operation

of all principal American corpora^

Federal Government, and, perhaps
to a lesser extent, a fear of the

Outlook for the Future

1954. The abandonment of the ex¬

have

is

time there

same

less stock

was

rent

The recession

a
the

more

,

than regained.

by

a

United States.

In its Uctober

more

was

make

production.

1953-1954 de¬

been

domestic

for enough months to assure that
1956 will record an average level
of $400 billion of gross national

economy.

lost

the

The result is measured
by total
Gross
National Product in the
third quarter of 1955 at the annual

business

Ameri¬

of the

help

prosperous

1956.

expansion

can

in

pect the rate to pass the $400 bil¬
lion level by the first quarter of

fected the vig¬
orous

will

rate

and has not af¬

expenditures of business will be

Administration

temporary field

in the securities and

modities markets.

was

for

duction which the ecoiomy. needs.
The expectation is that capital

our economy.

Eisen¬

The

labor force will increase the need
for machines to maintain the pro¬

period of prosperity America has ever known." Finds, as the
most encouraging background
factor, the increasing produc¬
The illness of President

line from

age

higher
birth rate and the immigration
following 1910 means that a large
group will be passing the 45-year
mark during the next decade. The
relatively small addition to the

Prominent industrial
executive, in his current statement on
the business outlook, recounts the economic
progress since
the 1953-54 depression, and the
background factors which
lead to his view "that we are on the threshold of
the greatest

tivity of

important fact is the

the

By HARRY A. BULLIS
Chairman of the Board, General
Mills, Inc.

13

(2317)

years,

and

will

that firm.

and that both the income,
and the total as¬
of consumers are growing at

money;

the liquid assets,
sets
This is

not an
to

offering of these Bonds for sale, or an offer to buy, or a solicitation of
buy, any of such Bonds. The offering is made only by the Prospectus.

an

offer

rates which

to
-

than offset the

more

in

$18,000,000

be alert to the need for credit

nor

Diego Gas & Electric Company

First Mortgage Bonds,

314% Series F due 1985
Due October

Dated October 1, 1955

1, 1985

that

extent

'

Copies of the Prospectus may be obtained from any of the several under¬
only in states in which such underwriters are qualified to act as

writers

legally be distributed.

Kidder, Peabody & Co.

incorporated

and

Wood, Struthers & Co.

Dempsey-Tegeler & Co.

Crowell, Weedon & Co.

Incorporated

The

E. S.

Hope & Co.

Chiles-Schutz Company
J. A. Overton & Co.

December 1, 1955.




(Cumulative)

Most

Par Value $100 Per Share

Encouraging Factor

my

Davis, Skaggs & Co.
J. C. Wheat & Co.

Price $100 per

of

living

in the

Copies of the Prospectus may be obtained from any of the several under¬
writers only in states in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.

Merrill Lynch, Pierce,

Blyth & Co., Inc.

world,

A. C. Allyn and Company

rope.

F. S.

vigorous rate of improve¬
ment in factories, machines, equip¬

Blair & Co.

credit situation, but this
expansion is also the force which
more surely can
advance the na¬
tion's
welfare
than
any
other
force
which has ever operated,
before
or
since
the
Industrial

Central Republic Company

merely

as

The

press

reports it

planned capital outlays

Co.

The Milwaukee Company

(Incorporated)

Incorporated

Piper, Jaffray & Hopwood

Moseley & Co.

Dean Witter & Co.
Kalman & Company, Inc.

W. E. Ilutton & Co.

Incorporated

Equitable Securities Corporation

Woodard-Elwood & Company

tighter

Revolution.

Fenner & Beane

W. C. Langley &

Kidder, Peabody & Co.

higher even than in the most ad¬
vanced/ countries of Western Eu¬

tools, is one cause of the

share

Plus accrued dividends from the date of issue

productivity of our economy. Dur¬
ing the past five years, we have
had the most vigorous rate of in¬
vestment,
invention, innovation,
and expansion of productive tools
ever known in history.
It is such
tools which make the American
worker the most productive work¬
er
in the world.
More tools and

ment and

Elworthy & Co. Hill Richards & Co. First California Company J. A. Hogle & Co.
Incorporated
C. S. Ashmun Company

4.70% Series Preferred Stock

vigorous economic expansion.

The

II. M. Byllesby and Company

Montana-Dakota Utilities Co.

increased

unemployment and idle resources
and thus checks today's healthy

standard

Dean Witter & Co.

causes

bigger machines have brought to
American
workers
the
highest

Blyth & Co., Inc.
Harriman Ripley & Co.

it

50,000 Shares

opinion, the most en¬
couraging factor in today's eco¬
nomic
scene
is
the
increasing

Price 99.619% and accrued interest

V

inflation,

should it be restrained to the

In

dealers in securities and in which the Prospectus may

offering of these Shares for sale, or an offer to buy, or a solicitation of an offer
buy, any of such Shares. The offering is made only by the Prospectus.

an

to

growth in economic expansion.
Such growth of credit should not
be sufficient to produce

San

This is not

total consumer debt.
The monetary authorities appear
growth

Laurence M. Marks & Co.

McCormick & Co.

Stifel, Nicolaus & Company
Incorporated

The Illinois Company
Incorporated

November 30, 1955.

Pacific Northwest Company

14

between

ance

favorable

The Year 1956

view

Bear Close

of

what

boom

decide

Most observers under-estimated

vigor

of

1955 business
them expected

the

Most of

recovery.

good year: quite
"the best year
a

.

few

a

even

a

of

'finally
materialized.
As

the

the

economy

hesitation

a

head

steam

of

occurs.

and,

as

op¬

Quite

foresee

turn

a

tion

is

bound

to

ment

and

to

predict

a

even

the

fact

older.

year

that

There

is considerable relief that the dire

things predicted by

for the

some

current year failed to

materialize.

"We

any

did

not

trouble

into

run

despite the ex¬
growth in private indebt¬
edness; or the continued decline
farm

prices;

the

or

.Hence the

speed-up

closer
If

They are still
approach
1956,

we

forces that needed

same

watching this

will bear

year,

watching
current

next

even

year.

indications

prove

correct, businessmen
and

are planning
expenditures for plant
equipment another $4 billion

to

new

to step

a

up

record

$33 V2 billion next

moderate

starts

right

mated

at

for

now,

$44

inventories

of

are

accumulated

next

year

another

currently

at

annual

an

5%;
being

rate

of

$3 to $4 billion; automobile

makers

they

better

to

beat

almost

market

best

and

record

in

1956;
to

Christmas
the

even

to

seems

1955
cars

if

as

'even

an

determined

the

ever;

second

the

seem

this

season

ahead

than

8,000,000

consumers

make

going

are

had

chance
of

billion

increase

an

some

volume, despite
in housing
is officially esti¬

slowdown

be

stock

getting

its

wind.

All

of

strength

these

in

factors

the

However, fill

current

of

them

outlook.

have

thing in common that is
disturbing, if not ominous.
them could

factors
rent

turn

the

and

rather

factors

more

usually

All

of

unfavorable

That

of

into

of

factors

were

wages

and

in

year's

responsible
consumer

*

a

increase

it

in

address

by

Dr.

for

deal
can

Lupdicke




Chicago,

of

mortgage

A™e,ican Finance Conference,

tani\U«L Convent»on,
1955.

the

spending;

good

instalment debt. Yet

♦An

than

this year no doubt

they encouraged
this

with

problem

capacity.

of

in.,

they
be'ore

22nd

F.

Haskell

U. S. Permanent

has been
Advisor to the

the NAC.

Represenative

Mr. Haskell

Stock

.

•

.

that

we

are

industry

Sixties ahead

are

increase

itself

erate

next

second
it

In New

mean,

President

1955

year

mates

downward

for

these

this

or

the Administration finds
slow

this type of

by

penditures
These

forces

three

conceivably

unfavorable

factors

in

turn

a ra he? substantial mar.
haps 10%, and (2) The fail-

discussions

to

with

as

weight is all the greater

ties will be carried

over

efforts

of

number

a

the

will

trate

major

of

their

making

exports

own

our

just

own

that

considerable
1956

succeeded

°L ^e J?001?1'
that
the

this result.

the

years

much

industrial

much

at

more

in

outlook.
Factors

re-*

strong

a

continued

is

high

already

the

men¬

prospect

Government

of
ex¬

penditures

yye

boom

Sp"lness
But, spotlighted

go

Actually,

hardly

can

should

is

restrictive

be

ex-.

credit

element

1Nov.

actually will

determine

and

that

fast

we

had to

the

the

that
bal¬

there
the

In

Walter J.

Goughlin

To Celebraie Dec. 2

in

_L

the
pay

miseiy

Florida

real

through 20

fhp

ppr,nnm;n

the

*

the

depression
not

was

New

Era

so

of

Coughlin of Coughlin
Co., Denver, will celebrate his
birthday Dec. 2 at the Investment
&

innf,pr

g

Bankers

the

much

philosophy

early
due

of

at

to

the

have

of

late

depression if

had net promptly
forgotten our great hopes for the
future and permitted ourselves to
become paralyzed into the theory

\

been

to

the

is

most

we

Today

we

know

yet,

we

may

again

run

too

fast.

That

be

next

anticipated,
move

in

that

and

interest

again, there is

rates

all

premature.

of

these

/,

reports

Certainly,.:

the

is

attending

Cough¬
convention

the

with him.

Joins Alex. Brown Sons
Chronicle)

(Special to The Financial
•

N.

-vWINSTON-SALEM,

C. -

James H. Smitherman has become
associated

with

Alex.

Brown

«

Sons, Reynolds Building.

cf economic maturity,

conserva-

further restraints

no

Convention

Association

Hollywood Beach. Mrs.

lin

twenties—but to our failure
to recognize the pitfalls of going
t°° fast- Even then, there need
prompt not
haye been anY protracted
•

Coughlin

Walter J.

of the

eyes

arp

J.

Walter

late

'

The

thirties
•

Administration

their

case,

Actually,
are

service of the

States."

But the fact

come

anri

form, these reports hold that,

any

selected to such

the

course

too

the

market

,

>
•.

■

probably will be downward.
one

ahead

lqtpr

vparc.

a

all

be
is

that.

danger cf

'stum-

.

After all.

we

have had ten years

of boom with only two minor inventory recessions. That is bound

Fahey Clark

Now With

And

trying to
why, once

bling.

.

the

for the

par

estate bcom did

by

indefinitely.

on

reports

that

controls.

the

'

went

remains

already quietly dropping its credit

in

post in

United

being
Golden

the

and economic losses.

stock

that

to

numerous

effect

key

a

terms—al-

for this in terms of human

over

removal of these curbs.

tive

policies.

describing

n was basedthat this twenties—through
grown.g
on
too

h

rate

and, at least equally
important, there is the possibility,
if not probability, of a reversal in
current

officers has been

As far as
mortgage credit is
concerned, the slowdown in hous-'
ing starts was pronounced enough

•

Mr. Has¬

same ones as now

ja^e twenties,

11S' ,0^ course,

.

Credit Policy

ledger,

regret

we

departure, the Stock Ex¬
change is proud that one of our

be-

borrowing from the future

pected

as

kell's

cept its timing?

the
tak-

in

initial" shock

to lead to pressure for the

factors of great strength.

there

glowing

the
,

concen¬

On the other side of the
are

in

nations

uncertainty

business

Favorable

This

credit

of the

of the speculative fever

the factors that make

are

for

tioned,

of

face

some

to

interest.

"Much

twenties—and yet when you come
right down to it, what was really
wrong with that optimism—ex-

-

the

there

the

•true

difficult.
These

in

mg

export drives,

of

#

Today it is

some
observers, f right
start, have pooh-poohed

Administration

of

this

under

props

nearby

on

booms

own

one

boom;
European
again are going to
on

thus

weaken

described

on

boom, the fact remains that

European countries, includ¬
ing England, to take the specula¬
which

influence

effectiveness

straints

West

tive fever out of their

based

investors leading to im¬
Exchange services in the

to ridicule the attitude of the late

from the

which may be softened next year,
but hardly reversed; the deter¬

similarities

the

J

exercise—in

While

into next

Chief among these are- the
protracted decline in farm prices

are

important.

The late twenties were widely
heralded as the New Era. The
millenium was near, and it was

trends.

year.

mined

,

ability of Govern-,most
conjunction used
in
monetary authorities, a Sixties.

the

number of other vulnerabili¬

a

overloo^

t

belief in the

considerable
Their

are

as

pioneering work with listed
companies, with institutional and

However, it might be, wise not

pronounced. This,
possibility for 1956, but
probability.

ment

into

stance,

public

tremendously

devoted to

been

At the Exchange, for in¬
Vice-President he has

public.

proved

lot today

a

has

done

private

bear

out¬

the service of his country and the

nQW—and these differences

rather

a

sense,

about the

We

regret.

an

entire career, in a very

His

real

bask, difference between then and

a

Haskell has made

felt.

pro-

laarn a lot from such a compari"

These

1956.

iong-range

inventory accumulation back
liquidation, the setback could

prove

"Mr.

standing record at the Exchange
and his departure will be deeply

tween the two periods' We can

too, is

a

of Governors with extreme

thirties

from

boom

such

"expendilures'lnd a^shfft

ment

to

ice, with the Exchange, had been

to pour cold

reaSon

n0

on

retire¬

ment, after 24
years of serv¬

accepted by the Exchange's Board

jections-just as there is no doubt
that things might have turned out
quite differently if we would have
had guch a dynamic concept of
our economjc future in the early

the automobile ins*?ort of

in

js

There

course

major

current

(1) The

Should the current and prospective uncertainties trigger a down-,

hot

the

are:

kell's
John Haskell

iivjng

water

credit.

ex¬

the

are

behind

They

"

combined

protracted, though moderate,
decline in new housing starts by
steps designed to ease mortgage

way

down.

could

that

a

their

take

any

esti¬

business

0f

said

that Mr. Has¬

standard

our

Ex¬

change,

•

further advances in

of the Administration to offset

ure

reason

to

between

quarter of next year—but

gm, pe

by

sufficient, almost, by
to
bring
about ' another
overheating of the boom, unless
revises

sometime

f

Stock

vances

and

o

the New York

growtb and unparalleled adin technology will cornbine into a period of even faster
economic growth accompanied by

current

York,

Keith Funston,

ahead when accelerated popula-

Setback
oetDack

these

of

mid-1956, probably in the

would

itself,

itself

all

setback

and

now

over¬

foreseen

for

Moderate
Moderate

of

vulnerabilities,
two factors could trigger a mod-

bullish

a

be

business

for
tor

view

uncertainties

The fact of the matter

the

would

In

ap¬

pointment.

however,
out of the woods as
not

does

,

ac¬

the

cept

Not Out of the Woods in
*' - Long-Itange Outlook
That

Ex¬

change to

'

to

retiring

President
o f
the New York

quite

limited.

•

is

from his posi¬
tion as Vice-

use'

more

ex¬

pros¬

temporary

They

now.

that

the

later must create

or

In addition to those

largely

increases

difficult

H.

far as the longer-range outlook
inflationary ~\s concerned./"A lot of the current
readily. It takes optimism is based on the unlim-

to

realization

cur¬

is.

Rising

third

a

Democratic

be

in weight to do it

_

us—sooner

a

favor¬

unfavorable

-

rather

suddenly.

classification

economic

able

into

rather

makes

one

not

downturn

any

pect of the Golden

once

denote

Future

may

Rising plant and equipment

world
Factors

and

Tricffers
ggers

of
is

1948-49 and

as

penditures—even

year's

Unfavorable

severe

as

production.

year. Construction
a

the

weapons

the manage¬

adjustments

without

made

is

solved.

as

a

largely offset
realization that such an

boom

1953; but it would be wishful
thinking to expect them to be

have

us

of

case

Appointed

tem- appointed Defense

are

and what

Defense Advisor
John

.

shaping up

side

deflationary

the

consider¬

inventories.

its

out

factor

been

activity.

of

in plant expansion. But this does
not
mean
that
these
problems
with

by

of

hand, fears

would

the

in

the level
Business

on

pressure

turn

serious

this year

cessive

in

able

inventory

1956.

despite
is

victor^

ob¬

few

a

exert

the

greater things for
boom

other

be

promise to conpolicies. On

a

Haskell

now,'1956 is not yet completely
«in the bag," but risks of any
serious disturbances in the trend
either on the inflationary or on

business

New Deal in

bullish

reversal

making progress in

the

as

sound

subsidies, cushions,

have you.

some

quite willing to throw caution to

this

interpreted
tinue

would

it

because

late

twenties and the "new" New
Era
of today—not the built-in stabili¬

moderate decline.

Thus, as things are

t

these ques¬

didn't know in the
early
even if we do
stumble

time next more than an ordinary economic 'jted
growth" prospects
ahead,
year. Any broad swing from in¬ •crystal ball to dope this one out
Everybody is speaking about the
with any degree of assurance.
ventory accumulation to liquida¬
Golden Sixties. That is the period
trend

inventory

business

All

fidence

moment, the ratio of sales
still is as good as

timism begets more optimism, any
of observers
now
seem

;

Republican victory next

November, almost Certainly would
lead to another display of con-

the rise continues.

as

number

wind

Another

the

inventories

servers

E. Luedicke

Heinz

be

gathering
new

a

—

to

seems

porary

Administration, particularly in its
it ever was. But, then, such ratios •initial stages, probably would ;disalways look the best just before card the idea of restraining the

—following a
brief period of
*•

political hopes and fears,

the

long

as

At the

to

ap¬

proaches,

between

profits?

factor

year

so

answer

the fall does not have to be
fatal'
That is the
real
difference be¬
tween the New Era of the

reversal in credit

a

prompt enough to prevent a

all

increases out

a

met

with

we

thirties;

zers,

be

can

complete
assurance"
thing we do know now

one

that

if there is
actual decline in 1956, it will

policy.and an assist from fiscal
policy in form of another tax cut.
However, in such a case, action
can
hardly be expected to be

tomorrow instead

course.

with

But

iL

an

today; namely the doubt

Sixties

due

Nobody

guessing,

are

in

tions

right—but they

be

may

of

We feel certain that,

question marks in the

whether future Administra-

to

i

,

par¬

in

Rising inventories are

They
still

to underscore one

.

or

rent and future cost

by as wide a
margin as

nomics. r

and

have become too
on
trying to realize the

in

Golden

considerations will outweigh eco-

will be willing to go as far as the present one
in attempting to restrain booms.
For the
better
part of 1956,
business sentiment will be caught

either trying their

of

higher prices

but

tions in Washington

luck
of absorbing
constantly rising share of cur¬

with

economics

serves

economy

with

confronted

are

choice

;to come true

businesses

smaller

—

fight

all probability,; would
losing fight. This ob-

of the great

as

its

sound

servation

favorable if

as

in

could

Administration

make

prove. a

pansion or if they pre-empt
productivity gains for labor
ticular

record,"
but very few
expected
this

1956

regarded

of

that,

they encourage excessive debt ex¬

that

.on

*

be

to

basis

wages;

still

the

politics will
economics. I The

over

Eisenhower

as

(2) rising inventories, and (3) rising plant
and equipment expenditures, which may result in excesses.
Sees as strong factors: (1) continued high government spend¬
ing, and (2) a strong possibility of reversal of current
restrictive credit policies. Maintains we are not "out of the
woods," in long-range prospects.
(1) rising

on

the showdown comes,

dim

commission

we

timistie

The

J"

maladjustments
both

u

Maybe

,tude may now be in the making,

rer

.

triumph

of

Administration, in laying
its plans for 1956, must, of course,
make allowances for the usual lag
between changes in credit policy
and the time when they become
effective. Those who are talking
about an imminent change in
these policies, once again, are taking it for granted that political

stronger
'

This, however, is strictly guessat this time, based on the
rather callous belief that, when

not yet

are

than

work

is
bag," but risks of
fin projecting good business outlook"inforthe1956, Dr. Luedicke
the
tionary trend
quite limited. Finds
unfavorable factors:
iany serious disturbances because of an inflationary or, defla¬
year

rather

up

errors

omission.

"whirl" of some magni-

will .tip another

probably

it

straints.

Editor, New York Journal of Commerce

a

involved

is

In

build

to

un-

year.,:

the balance in favor of continued

Watching

By II. E. LUEDICKE*

holds that

next

Thursday, December 1, 1955

,..

to

policy of restraint has not
called off. This h not surprising
here in view of current indications that

and

favorable

factors

politically,

the

Commercial and Financial Chronicle

The

(2318)

(Special to The Financial

CLEVELAND,
A.

Parker

with

has

Fahey,

Commerce

Chronicle)

OHIO—Richard

become

Clark &

Building,

connected
Union

Co.,

members o

the Midwest Stock Exchange.

Number 5486

182

Volume

: .The Commercial and Financial Chronicle

.

(2319)
less

protection

schemes.
It

By WILLIAM F. BUTLER*

to

in relation to current

lation

can

run

sales, holds

I he

definitely lov/

are

rate of

recent

become excessive.

That's

inventories

answer.

Will

year?

cur¬

rise. 3%

sales

the

tors

then
will

ahead,
business

inventories

inven¬

in

borrowing to build

goods in

siderable

up

excess

there

relocation

erance

of

in

of

is

automation,

pay.

If the

con¬

plant

to be
William F. Butler
:

run

on

without

for two

,

tion and

inven¬

adding

or

sev¬

'

duction

down

turns

ness

the

have

been

course,

far

as

as

also be limited.

its effect will be good
it goes. Supplementary

periods

of

recession

and

thus will

may

be important indirect effects.

The

1

.

one

swings

benefits
General

inventories should not prove
upsetting factor. The economy
should be able to accommodate
year,
an

rise

in

first

the

inventories

business

of next

half

year

in

and

a

their

conception

STJMNER H.

supplementary

type

upon

the

economy
as
a
whole will de¬

pend upon the
to

extent

which these

spread.

plans

They are
1ik e1y
to
less

spread

rapidly than
supplementary pension
plans because

,t h ere

are

many

c o m-

Sumner

H.

Slichter

in

anies

p

which
is

so

that

work

steady
there

is

little. employee interest in sup¬
plementary unemployment com¬
pensation. Most of the spread of
supplementary pension plans has
occurred since the negotiation of
these

plans in the steel industry

in 1949.

At the

*Summary of
before

a

session

Conference

17,

a

present time, suptalk

of

the

Board,

by

Prof. S'ichter

Nat'onal

Indus¬

Philadelphia, Pa.,

1955.




what

are

the

Substantially

benefit

states

payments

would

be

by

major

a

to

may

increase

larger

the

states

contribution

toward

sustaining incomes during
recessions and thus in stabilizing
Larger benefit

pay¬

by the states would impose
cost

net

whole.

On

-

would

on

the economy as a

the

less than

cost

they

contrary,

nothing be¬

increase the
total production of the economy.
would

they'

cause

Fears have been

^supplementary

expressed that

unemployment

in

ployment

the

This

concerns.

There

hands of
fear
will be

lgrge

is,f illsome

so

weak

among

the

the

been

has

employment

expressed

that

compensation

plans

industry from ex¬

If an employer, by add¬
ing new workers to his payroll,
incurs heavy obligations to pay
supplementary unemployment
compensation, will not enterprises
be reluctant to expand?
I think
that
this
argument is without
merit. The rate at which concerns
will"'expand will depend upon
the rate at which they get orders.

panding.

is

half or more of

considerable

employment compensation will be
slower
than the spread of

Several months
unlikely that

take

It

would

of

supplementary

a

very

high rate

unemployment

employers pre¬
customers rather than

benefits to, make
fer to, lose

I said that it is

to
add workers to their force.
supplementary unemployment Furthermore, to the extent that
compensation will cover as many supplementary unemployment
as
10 million employees in the
compensation supports
markets
next five years.
As a matter of during periods of recession, it
fact,
I
doubt whether it will ! will encourage rather than dis¬
spread to five million employees courage the expansion of industry.

ago

in the next
mean

that

five years.

than

less

This would
out of

one

eight of the workers now

covered

government unemployment
compensation schemes would re¬
by

supplementary unemploy¬
compensation.
There will
be some spread of security bene¬
fit plans of the type negotiated
recently in the flat glass industry,
ceive

ment

I

but

do

rot

believe

plans will ever become
tensive.
The fact that
not

embody

ciple

means

the

that

that such
very ex¬
they do

insurance

increase

prin¬

they give far

in

wider

operating

mar¬

legislation will tend to
impetus for the
exploration of new wells.
act

as

As
in
a

further

a

indication

an

drilling, the
gas

of

its

success

completed

company

distillate well last year, with

has

been

*'

»

'

•

potential of approximately 1%
cubic feet of gas daily; a

a

contract for the sale of the output
of the well has been made with

Tennessee Gas Transmission at
escalated

•

beginning at

price

rich gas

an

10.2

immediately
vorable

The

marketed

contract

gas

between

ploration
account

drill

and

During

sively.

for

in

million in 1954,
period earnings re¬

tained

in

the

days.

We

are

within

the

operation

have

proved

has

to

be

so

used

was

expansion of fixed assets.

Stock dividends

in

of 4% were paid
1951, 1953, 1954 and
the heavy invest¬

the years

1955.

Desoite

ment

in

fixed

assets, the long(including current pay¬
due) was a conservative

term debt

15,

24% of net property as of Decem¬

ber,

90

1954.

down

of the Harris Bill, or
legislation,1 would be in¬

the

Over

past four
Gas
brought
average of 12% of gross

Southwest

years,

of the opinion that

the passage

similar

business

profitable that cash flow

Man¬

next

$5.2

brought about a steady growth in
the earned surplus account to the
point where it now amounts to
$5 million or five times the size
of the capital stock account. The

1955 that additional well locations

made

at

this

ments

be

years, 1952
consistently

During

27% in the successful wells.

will

Gross

reported

to

Sept.

the

on

be

the past nine years, and were

over

for the

on

ex¬

limited
revenues,
with
to

and 1954, have grown

1954,

announced

to

and depletion,

exception of two

it partici¬
pated in the drilling of 25 wells,
of which five are completed as
oil wells, eight as gas distillate
wells, and 12 were dry holes. The
rom0onv's
average
interest was
agement

allow¬

tax

years

for what

part

appears

earnings.

aggres¬

gas

income

expenses

surface

fa¬

continues

management

a

years,

given in recent

ances

1951.

earnings
peak of 97 cents a share.

favorable

the

1947 and

year

latter

reached
The

nental Gas Pine Line Corporation.

search

the

the

In

was

under

'

natural

other

producers, Southwest Gas en¬
joyed a strong earnings growth

Transconti¬

to

with

common

gas

distillate well in Acadia

Louisiana.

Parish,

The

the

of

power

Earnings

cents per 1,000 cubic feet. Earlier
this year, the company completed
a

earnings
plant."

new

In

million

an

net income, after taxes.

revenue to

Natural gas production is adecentive to the independent natural
•fensive industry. Statistical serv¬
gas companies, such as Southwest
ices rate it high for stabilitv of
Gas to

intensify their exploration

expressed that

earnings and resistance to cyclical

and increase their volume of out¬

Prior to Oct. 1, 1955, Southwest

required

was

ucts. As of Oct.

1,

a

purchase

to

others
own

to
prod¬

Universal

new

Oil Products Platformer Upit

the

at

the

manufacture

was

Plant

Dubach

highest

to

octane

creates the onlv
gasoline plant in the area which

This

int°^rated

extraction

a

natural

gas

Several months
unit was placed

plant.

this

b°fore

with

new

signed
95% of the supply in the plant

into operation, the companv
up

area.

additional

Three

wells

are

being added to the 62 wePs which
now are connected to the elaborate

On the basis of

gathering system.

present average through-out. the
plant recovers anoroximatelv 2.500

Moreover, the outlook

further

growth

Oct.

On

Cracking Plant

New

Gas

influences.
•for

1955, Thomas T.

12.

den, President

essing charge of one cent to one
and

one-half

cent

gasoline, plus 35%

gallon

per

of

of the liquids

recovered, earnings of the crack¬

ing plant alone could approximate
25

cents

In addition, the

share.

a

expenses

incurred for purchasing

"Rather

in

gas

than

now

eliminated.

new

that

the

unit,

it

company

As

is

a

result of

conceivable

can

enjoy

an

of

Ar-

Gas

show

diminu¬

any

will be

We

r

FPC

the previous
than 9%, and 1956

more

better than

even

venture
control

ents is

terest

of

will top

1955

high by

to

the

over

1955,"

that

sav

when

independ¬

removed, the renewed in¬
in

the

stocks

common

of

natural gas companies is Fkelv to
cause

substantial

a

prices.

The

Southwest

in

rise

offers

investor

their
of

stock

common

Gas

criminating

the

an

dis¬

unusual

opportunity

for participating in
the revitalized growth in a con¬
servative

utility

basic

and

industry.

sector

the

of

1952, when
the growth asoects of the natural
industry

by

the

of

271/4,

times

In

were

investing

yest, Oas

common

and

sold

earnings.

fullv recognized

South-

public,
reached

for

high

35

ourrent

th®

At

a

almost

price of 9 the stock is selling for
considerable

a

smaPer

earnings

multiple and appears to ignore the
are likely
in the com¬
the meta¬

dynamic factors which
to affect the company

ing months,

as

well

as

morphoses in the company's crack¬

ing plant.
the

Over

high premium blending materials
is

excellent.

tion. the Nation's consumption

of

of

is

Appliance
Manufacturers Association, stated:

gas

gasoline. 1,000 barrels
propane,
and 500 barrels of
butane
each
day.
With Southwest's contracts calling for a proc¬

barrels

this
Fear

in plans for education,

even

the

at the well¬

gas

and

is

spread of supplementary un¬

will discourage

far

plans.

and success

keening down layoffs.
Fear

spread of supplementary un¬

pension

with

gasoline;

■

most industries that

in

seniority

head

gins'

between the

in

supplementary

with

workers

the

for

price of

average

instaPed

size cf the enterprise

plementary pension plans extend
to about 12 million employees.

compensation

find it easier to keep down

connection

the

contract, there is consider¬
room

layoffs than larger enterprises. In
most industries there is probably
close

anc*

extraction

high-octane gas from
blend and up-grade its

no

of

recreation of the

of the children.

the

under

find it easier to keep down
layoffs than the smaller firms; in
"other industries the small firms
may

on

recreation

..

family anc* the trips that it takes,

tion to the potential improvement

put.

.may

th

"?

in volume from existing wells now

production and em¬
ployment in the hands "Of those
firms, (large or email)
that are
best at keeping down layoffs. In
'some industries the
large firms

Professor

The demand for

unemploy¬
plans
to

^concentrate

SLICHTER*

unemployment

supplementary
compensation

j

/

,

tendency (not particularly strong)

the economic impact of
supplementary unemployment compensation plans, holds that
it is unlikely that such plans will > spread-to more than
5 million employees, or about one out of each eight persons
employed. Since the spread of these plans is limited, he holds
their effect in stabilizing the economy is also limited. Rejects
certain fears regarding ill effects of supplementary unem¬
ployment compensation.
of

may

raise

to

"adequate" benefits and thus

boom-and-bust inven¬
Tounded.
tory pattern for 1956.

Harvard University

effects

of

stimulate

the typical

Lamont University

The

legislatures

.compensation plans would tend to
buying concentrate
production and em¬

Impact oi Supplementary
Unemployment Benefit Plan
Slichter, in commenting

agreements

state

ment

unemployment
compensation
plans of the Ford-General Motors

Motors

cause

for

Prof.

supplementary
provided in the Ford-

no

Thus, the odds seem to be against
talk by Mr. Butler be¬
fore the National Industrial Conference
Board, Philadelphia, Pa., Nov. 17, 1955.
a

By

substantial

ments

equalled 98% of the total decline ..slow-down in inventory
in the 1949 recession and 40% of
during the second half of the year.
'Summary of

recession.

the economy.

a

inventory

Thus,

of

b

,

The Security I Like Best

benefits will help sustain incomes

during

it

•

restrictive

Of

buys, in the household appliances

'

the economy will

changes in general business activ¬

If, however, general business ac¬
tivity rises moderately in the next

business

in

major factors

cycles.

Thus,

employment.

or

earnings
betterments.
Moreover, the removal of present

ity will have their impact on in¬

good

in

and

$30 a week would
important difference in the

an

unemployment
compensation
is
quite limited, as I expect that it
will be,
its effect in stabilizing

ventory policies in the year ahead.

will acceler¬
swings from

inventories

to

linked

A differ-

Continued from page 2

able

spread of supplementary

benefits.

to the
over-all movement of sales, pro¬

.

times to cutting them when busi¬

inevitable

inventory policy is, of

intimately

course,

danger is that the pace of
In

ate.

to hope that we

employment.

Eusiness

tories excessive.

building
the past,

reason

downward adjustment in produc¬

three

or

making

good

boom that brings on an

$5 billion in the current
quarter. Yet that rate of accumu¬

The

us,

shall escape the sort of inventory

to

inventory

be behind

beat price rises. Thus, there seems

third

can

need

(3)

reducing the incentive to buy to

the

quarters

the

rapidly;

dustrial prices may

billion

lation

reducing

on,

stocks

$20

unfilled

enormous

standard of consumption1 of most
families—in the clothes the family

in¬

Furthermore, there

build

at

$3

Nov.

which

and,

of

make

service, or
service, get
Disability insur¬

the

now

ence

I
the

major part of the advance in in¬

annual rate

trial

with

help sustain the demand
for goods and limit the severity

to

quarter of this year. The annual
rate of inventory building may be

of

advance

its

to

inventories

up;,

fac¬

operating to

the Federal Reserve's

back

from

Business

added

in

(1)

be

years.

types

example

in

introduction

an¬

of needs;
(2) sales should rise more slowly

to

level.

an

re¬

several

are

to

the

stocks of

bring them up
to
a
normal

of

there

of

.

hard and fast

seem

an

dustries

juncture, it's impos¬
a

important

few

the

benefits.
is

ance

policy of credit restraint tends to
hold

its

to

billion

Yet

that

tories:

$6-$7

about

give

moderate

add

to

have

to

swer.

year

'some

history repeat in the next
At this

sible

j

,

V

,

types

next

that

the

of

aware

which workers of long
at least medium-term

drop in the mild 1953-54

cession.

easy

definitely low in relation to
rent sales. If
in

the

too

question to
Business inventories are
an

and

greatest appeal will be those from

inventory build-up, but contends current credit re¬
pdicy discourages borrowing to build up stocks of goods

business

Are

high?

the

think

of rate of

straint

what

guess

insurance

wants of most families.

interesting

during

accumu¬

for almost three years before inventories
Sees danger, however, in an acceleration

on

than

:

security
will have the
strongest appeal to
American workers
and, therefore, are most likely to spread

Consulting Economist, Chase Manhattan Bank

Miv BiiJer, in staling business inventories

is

'

15

holder
to

be

of

share

in

derived

the

stock¬

Gas

long-term
Southwest

stands

the

huge benefits

by

the

to

independent

producers in the natural gas in¬
supplementary unemployment
increase of earnings amounting to dustry. The stock is traded in the
compensation will lead employees
to prefer idleness to work.
I do approximately 50% of that of last Over-the-Counter market.
not think that there is much basis
year's earnings. A gas specialist
for
this
fear.
Most American
Frank Bateman Adds
*•
associated
with a large Eastern
workers would like to be able to
(Special to The Financial Chronicle)
buy much more than they are al¬ security house says that in his
PALM BEACH, Fla.—Robert X.
ready buying. Indeed, people who opinion the construction of the
Marcellus
has
become
con¬
feel that American workers will Platformer Unit puts an entirely de
be
content with unemployment
with Frank B. Bateman,
different picture on the company's nected
benefits of $50 to
$60 a week
outlook
"the stock should be 243 South County Road: He was
when jobs can be had paying $20
worth much more than 10 just on formerly with Bache & Co.
or
$30 a week more are not
..

.

.

16

(2320)

THE MARKET... AND YOU
.

Year-end
was

the

leases from the

viewpoint of an insurance company as lessor,
cipal provisions of such leases. Gives data on

standard type

a

form, and covers such provisions as: (1) the
Granting
Clause; (2) the Habendum or Term Clause; (3)
Royalties;
(4) Rentals; (5) Pooling, and (6) Limit Operations. States
he is not critical of the oil and
gas
oil companies

industry, but, since the
trade, with the interest of the lessee in mind,
they should with equal fairness do as good a job for the lessor.
I

hope

will agree that we
should make the effort to become
better ac¬
you

ably

of

grant
of

the

exact

lease,

gas

being

of

the

is

indus-

try.i

In

not

the

at

all,

but

grant

of

oil

Allen

the

right to
and gas therefrom.

C.

Steere

take

and

the

Area, the

88

is

lease

gas

"The

the

form.

real

countless

are

First

used

land

property,

is

regarded

in¬

fee

as

the

having

estate. 6

their

the natural

ownership'

or

peculiar nature in

state, oil and

the nature of

more

gas take

common

prop¬

erty title to which becomes abso¬
lute when

variations.

in

they

reduced to

are

captured

are

and

possession, and the

1916, they are
characteristically fixed-term

landowner

leases

possession, but has the exclusive
right on his land to drill for oil

with

clauses.

"unless"

Mr.

A.

member of

a

former

a

only

drilling
Walker, Jr.,

W.

the Dallas

and

Bar and

professor of law at the

"This

form

frequently
of

use

insisted

in

decisions,

form.

in

the

These

original

revisions

ideas

companies

or

of

lease
fre¬

were

particular

many

visions of the

oil

printing companies

with the result that there
in current use

are

different

re¬

original 'Producers

One of my oil friends has said
that so far as the
operator is con¬
cerned the words "Producers
88"
of

help in convincing

man-landowner that

the

a

lay¬

particu¬

lar lease is the standard
type lease

form.

and
no

1 For

and

Gas

2 28

Review

discussion

to

19,

in

the

Law

Rev.

of

Oil

185

"The

granting

clause

the

Gas,' 13 So. Calif.
1940), wherein it is

adopted
the
'ownership in
theory and that California, Illi¬
Indiana, Kentucky, Louisiana, New

Oklahoma,

and some decisions of
States Supreme Court
have

United

clusive

the

'qualified

ownership'

right' theory. For

prob¬

Remarks by Mr. Steere
before the Le.gal Section of the American
Life Con¬

vention, Chicago, III., Oct.




11,

1955.

'ex¬

or

discussion of

a

the

development of the two theories, see
Summers, Oil and Gas 121, sec. 62."

1

Brown

o

Tex.

126

W.

2d

296,

1069,

1935);
50

Humble

v.

S.

W.

2d

Humphreys-Mexia
247,

254

S.

Oil

S.

83

101

Lemar

A.
v.

769

&

W.

Refining

2d

935,

v.

296,

Gammon,
29

A.

(Sup. Ct. 1923);
Elliff
v.
Drilling Co., 146 Tex. 575, 210 S.
558
(Sup. Ct. 1948)."
Lemar

Stephens

v.

Garner,

Coiinty

Cos

Co., 113 Tex.
(Sup. Ct. 1923)."

,7 "People
Cal.

93,

294

v.

87

L.

R. 1393
(Sup
Garner, 121 Tex.
(Sup. Ct. 1932);

Co.
W.

.

yielding

groun

as

to dividends.
Continental Oil
action, the better which posted a brand
new
performance was that of the high only
recently, backed
aircrafts which were able to
away from it with
enough

ahead with more, una-

determination

to

make

it

nimity than any of the other somewhat prominent on
the
major divisions. General Dy- casualty side. Standard Oil
of

American'Jersey,

Aviation

the

on

other

hand,

emerged as the bell- was ; buoyed
by its alreadywethers for the plane makers
approved split proposal and
and Curtiss-Wright joined
managed to hold with the
North American among the
more
buoyant issues,
issues reaching a new 1955 ■ %
high on the week, to make
Revival in Amerada
aircraft representation a fact
Amerada, which has been a
after a long absence from this
laggard for long after having
M

,

,

earned the reputation earlier
of being the wonder stock of

0

the post War II era, was back

Significant

been

hovering only a
distance below the
high

short

issues

For group

.,

have

somewhat exclusive
of

,

customary year-end rally tabulation.
the tax
selling is over.
Dividends and Splits
Furthermore, the industrials
The

market

was

domi-

so

demand, not the least

some

^

0f the attractions

being that it
by dividend action, in- was available at
25% under
low, so that a new peak is eluding stock splits, that little its
year's high which, incipossible on any show of gen¬ other news made any impordentally, has still to best the
tant
eral strength.
changes. One exception peak of 1952. it was the No. 1
*
*
was G. R.
*
Kinney where the holding of the mutual funds
anti-trust forces of the
Volume
govindications
were
steadily until the 1955 midernment
moved to
block a
neutral.
A
seeming pickup
year reports showed it down
one
day was more often due merger with Brown Shoe. The to fourth
and

to

well

in

one

the

above

two

or

single

shares

the

October

large block turnovers

some

in

issues such

sale

of

as

72,900

the

normally inac¬
tive Chicago,
Indianapolis &
Louisville against its '"norm"
of around half

a

dozen

single

nated

one-session

the

issue

most

loss

a

Ward Continues Erratic

Montgomery Ward

■

was

among the more erratic per¬
formers as the hopes rose and
fell

the

over

chances

of

among
actions of

the

Shoe, however,

precluded
of

any solid support
buying from this im-

new

up

but reacted itself when Kin-

rebounded from the
u n c i n

leaving

g,

a

Y
the

garded the

cgntl

b

is

had

from

port

*

"

equipment

firms.

Lima-Hamilton,

Baldwin-

degree

a

Federal Communi-

would

much

being

evaporated to

when the

since there had been

so

re¬

market_

the stock

far

vvhich Zenith is

2-for-l division

d

a

a
sensation. Part of its basic sup-

news.

*.

the

has

f ardent followers

if Vr/ACluie wise,
shareholders re-

thoroughly scrambled picture

Tv
of how

Zenith

share

Some
stirrings were apbeing split. It was only parent in the
specialties, inslightly less erratic after the eluding the
road-building
board
a

such

thoroughly divergent. It
portant institutional quarter,
when Kinney broke,
*
*
*

ran

stock

voted

in

holdings. The fact that it was
the the top
holding for so long

ney

day's work.

position

$11.75 in

ranked

drastic

week. Brown
was

of

tro

trades for

ing, of

3-for-l capital read¬

a

justment.

thing of
the

supra

160,

254

S.

113

L.

R.

Texon
W.

some¬

Coast

cations Commission indicated
that the field of

be

paid-TV, in
prominent,
long time being

a

so

trading

the time the decision

$

was

make

ward strides at

good

up-

times. It had

at

awaited

a

the

as

traders

similar decision to

result from its dividend meet¬

ing. The pattern of
vance

next,

one

day,

followed

bound, and
the wilder

Pacific,
stock

so

ones

where

a

$11 ad¬
$9 fall the

by

a

a

$6

re¬

on, was one of

around. Union
an

once

realized.

v.

perior

.

^
^XT

,.

*

,

•

,

nn

the'subseauent S " "2

was

another issue rather

generally favored as behindthe-market. It, too, had been
lolling at around the year's
low

recently putting it in

subsided

the rail
rather

of well
past

he tu"e of s,ome f ,1
fr/f\the y6a5S ^L^ined
able ^ mount some sustained

strength at tunes and, at east
was not spending a good share

V

the

\The

pearing

among

Seeley,
group.

,

in

The
.,

makes it

j

views

•.

ap¬

ed

not

coincide

in

expressed

this

at any
those of the

necessarily
with

They

presented

are

those of the author only.]

as

Kingparts

had

year
i

Tt cer

li

laws list. tcer

specific

auto

all

do

"Chronicle."

was

stock

«.

was

the

the

action

time

Specialty

Another issue that

g

tal% 18 "f,1 ln step ™nni
?lcture ° tbe aYfhighs.
*?eLP°

6%.

A Recommended

new

to assault the old

article

the hopes were little

^The high priced Su¬
Oil, which normally

a

decidedly above-average yield

approved recommendations

split started all

rapidly

favoring subscription

video would be handed down,

been sheared in half from the

field,

was an even more

item

decision

an¬

sfc

Santa Fe
erratic

290

Associated Oil Co., 211
Pac. 717 (Sup. Ct.
1930)."

seriously deflated,

to

nounced, put a more optimis¬
only a meagre fraction above
tic price
tag on the issue than the year's low.
Allis-Chalmthe New York market did in
ers, which also has a hand in
the
trading session following the
road-building equipment
the news.

2d

&

able

was

a

markets,

still

were

9;

Oil

W.

also

was

different note when

a

commotion,

note

Mid-Kansas

It

West

Texas,

have

nois,

6

is

Mr.

Arkansas,
Kansas,
Mississippi,
Montana, Ohio,
Pennsylvania, Tennessee, and West Vir¬
ginia

a

even

some

once

Michigan,

Tex.

*

by

Counsel, Jan¬

and

(Jan.

that

607

3

of

1953.

4 "Ok'ahoma
and California follow
the
'qualified ownership'
theory, while Texas,

stated

another, there is

its

897

Arkansas, Mississippi, and others follow
the
'ownership in place' theory. See Louis
M. Andrews, 'Correlative
Rights Doctrine
L.

industrial

Oil

896,

presented

Meeting

a

the

still time for the list to mount

which
a

Wi.kinson
uary

Gas

and
Taxation, Southwest¬
Foundation, Page 1 (1951).

3 From

back

section. For

o

infected

was
on

a

much
larger swings than is its wont. as 6^0<
J
,
5
mucn
Among them was a $49 ap'
*
*
*
preciation in one session, folAction in the oils was
highlowed by a $22 drop for anly divergent, and again a case
other day s chore.
largely of individual reaction
*

somewhat

gas lease,
article, "The Evolution

Law

tax selling is still around

hold

to

on

(1950).

member of the

Dallas, has said:

prop¬

Law

Texas

high ground for a quarter
century late last week. For
one,

put

built up

pet early resolved. Part of Zenith's
appage 34 talk, particularly around the in the
year after which it was
time of the last annual meet¬
peaj bas been that a speedy
discussion of the

interesting
Moses'

Legal

ern

502,

Wilkinson, Jr., a
Legal Department
Magnolia Petroleum Com¬

pur¬

Development of the Oil and
Lease," Second Annual Institute on

of the

pany,

practical

common-law

and

Ct.

T.

determin¬

a

difference, between the

an

Leslie

see

Co.,

Granting Clause

for

evolution of the modern oil and

S.

R.

all

Continued

York,

cussed.

land

is

erty interest under the 'ownership

adopted

standard except as to
basic clauses,
and in the para¬
graphs following, some of these
so-called basic clauses will be dis¬

Mr.

for

landowner's

comparison, however, of
printed lease forms will show that
no

which

the

as

in¬

an

"Actually, there is little differ¬
poses

there is

The

duration

ence,

place'

Any

profit

a

able fee.

now

88' form." 2

are

in

the

quently made according to the in¬
dividual

interest

same

upon

revisions

many

the

holds

gas,

hereditament

vested

a

years, bringing
new
and
new
troublesome

made

were

and

corporeal

forms

the

oil

of

problems
court

the

prendre in the nature of

a

carrying this
-designation.
Oil
companies
in
printing their forms, as well as
printing companies generally,
-were quick to
capitalize upon the

passage

prop¬

the 'qualified
owner¬
theory, a lessee, instead of
holding a determinable fee estate

their

popularity of forms bearing
words, 'Producers 88.' With

this

on

to

ship'

and popular did the form become
that landowners in
the

and retain

gas

them

"Under

met

with popular
prior to 1920 the
use of 'Producers 88'
form leases
has spread throughout
Oklahoma,
Kansas and Texas. So well-known

lands

reduces

surface. T

and

leasing

he

erty all substances brought to the

University of Texas, has said:
approval,

acquires title to them

when

generally to capital¬

con¬

and

as

*

the rail breakout into

on

and

bit

move

*

widely,

moves

the failure of the in¬ namics and North

over

ize

the

theory
in place be¬

of

grin

dustrials

property

gas

'qualified

of

cause

term, "Producers
identify any par¬
ticular lease form, but
merely a
general type of form of which
there

the

of

indicated

There wasn't to much cha¬

to

as

is

out.

on
*

several

'exclusive right' theory is
that, be¬

not

does

direction

.

ship in place' doctrine is recog¬
nized, and oil and gas lease in the
ordinary form is a present con¬

oil

the

88,"

the

part of the land and

a

are

terminable

Producers

However,

.

veyance of the oil and gas in place
and conveys to the lessee a de¬

In the Mid-Continent
oil

.

absolute title thereto in
severalty^
"In Texas, where the 'owner¬

Producers 88

usual

of

surface

landowner

a

the

so-called

estate

states

and

the

such

oil and gas or
of the land

with

that

stitute

lease

a

courts

nature

neath

strict sense, it
is

real

action

market

from here

deeds

of landowners in the oil
and gas underneath their land.4
"The 'ownership in place'

essen¬

the

to

in

terests

one

tial/contracts
of

of

diversity of opinion

a

producing

the modern oil

what

clause

employed

conveyance

the

stable

originates from the

clause

among
oil

provisions o£

it

It

"There is

principal

and

most

the lease.

quainted with
some

the

stock

dividend

prime motivation for

again this
week, making for erratic ac¬
tions
reflecting the approval
or
disappointment in specific
cases. For the
general market,
it was
largely a period of
waiting until the year-end
cash barrage subsided to see

the prin¬

covers

lease

the

i

i

even

couple of pegs higher. It, too
has been available recently in'

===__

The Lincoln National Life
Insurance Co., Fort Wayne, Ind.

generally. In fact, the

hasn't

10-poiht range for the year
ah
though it did succeed
in
nudging its all-time high a

STBEETE

By WALLACE

By ALLEN C. STEERE*

gas

Thursday, December
1,1955

issue

Second Vice-President and General
Counsel

Steere, in discussing modern oil and

«• •

actions

Oil and Gas Leases from an
Insurance Company Viewpoint
Mr.

and Financial Chronicle

The Commercial

DENVER,

had

which
,

With Glenn Kolb
(Special to The Financial Chronicle)

,

_

definitely neglected

in view of all the wild
market

Colo.

—

Robert

Kittleson has j°ined the
Glenn
He
&

Kolb

was

&

Co.,

509

T.

cf

17th St.

previously with Honnold

Co., Inc.

Volume

182

Number 5486

.

.

.

The Commercial and
Financial Chronicle

T

(2321)

TV*

1 1

t

o

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The Capehart

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17

18

(2322) v

The

■

Financial Chronicle>

Commercial and

*■.

Thursday, December

.

1, 1955

V

father

his

President, Guardian Oil Company
President, Institute of Foreign Trade

Secretary

|

wherewithals

can

the great

the

Soviet Union

or

we

subject

whether

of

we
should trade with the Communist
is

Governments

but

vital.

most

the Soviet

only timely
the light of

not

In

regime's behavior dur¬

ing the past 38 years in its own
domain

order

well

murdered

has

it

millions of its own people

many

in

where

in

remain

to

as

power,

abroad; in the light of our
experience since recognizing

that evil

regime in 1933, it is im¬

perative that
and

examine the

we

of

pros

with

the

trading

There

be

can

question

no

"peoples"

the

with

hind the iron curtain.

of

be¬

In the

con¬

spiratorial plans of the Commu¬
nists, the peoples do not count.
As
Lenin
said
early after
the
revolution: "I spit on Russia!
It
merely

which

through

phase

cue

must

we

pass

the road

on

to the world revolution."

In other

words, the peoples they rule are
merely
guinea
pigs
for
the
zation

that

the

under

commu¬

allies.

nism

are

their

regimes far more

our

op¬

They

hate

than

we

do, for they have been tasting the
the

of

baric

it

Yet

r,

there

who

of

created

ago.

among

that

know

little

hole
trade monopoly
Communist gov¬
tight

the
That

ernments.

long

Communists must

the

by

there

even

through the
the
foreign

go

monopoly

is

a

powerful weapon in the hands of
the

Communist

regimes and it is

being constantly used against the
free

countries, notably the United
States.
Since the revolution, in¬

ternal
fusal

conditions

War

Soviet's

and

have

design
clear

now

tively
feel

and

dead

will

begin to
that

of

hand

rela¬

a

un¬

unethical

and mur¬
derous
regime
in the interna¬
tional arena. That is being greatly
accelerated

by having swallowed

the highly industrial commu¬
in Czechoslovakia, Eastern

recognition and we did not have
to wait long to discover it was a

and

businessmen

Travelling

a

Street

One-Way

all

travelling

a

every

keep

conference

on

the

have been

we

one-way

cheated

emerged

with

relations

our

Soviet Government

drag

bedfellows

street.

we

have

defeated.

and

with

world and open the door to those

on

asking for more,

and

in

have

re¬

injuries.

In

return
and

1925, while in Moscow, negotiat¬
a

concession,

which,

of,

never

and

came

to fruition, a

prominent

gineer warned

me:

Russian

en¬

"You Ameri¬

of

American

knew the

ciation

and




The

international brigands.

was

one

His

Bullitt

first

name

who

wno

William

was

become

to

was

Ambassador to
to

partment

Oct.

C.
our

Russia.

the

memorandum

In

State

a

De¬

five
weeks before we recognized the
evil power, he warned:

loans,

on

1933,

6,

recognition and before

shall

we

find

Soviet

the

entertains

a

ment

the

Soviet

Govern¬

adamant."

That

is

precisely what* hap¬
pened.
Buying from us sorelyneeded machinery and equipment
valued at about $46 million annu¬
ally—a mere drop in the ocean
of America's vast economy—sell¬
ing

their

us

could

merchandise

out, the Soviet spying commis¬
sions, parading under the guise
of
"buying
commissions," have
carried away
how

worth

technological knowto

them

billions

of

yet
to
learn
that
Communist gang¬

have

icans

these

should

other

all

and

dustrial executives, bankers, home
would

the

be

first

honeymoon

ended

with

cur

Soviet

By

1941

government

our

should

people

have

had given away

we

enemy

have

to our eternal

birthright for
pottage.
Facts

our

of

mess

since

to

come

and
that

known

mere

a

which

light

prove

conclusively that the lesson had
gone
unheeded.
Beaten by the
onrushing German war machine
the

from

West

jig

of

was

its

knew

first

and
F.

Roosevelt

with

flunky, Harry

With

by

thousands,

refusing

something
reports

his

the

armies

our

had

the

we

by

Bullitt

Commu¬
con¬

cessions from the Russian peoples.
whole
world
would
have
a

live

happier
in

and

safer

place

today.

But genuine experts on the sub¬

ject

were not wanted

itself proves

That in

by the white

that

could
fit

con¬

dare

ever
a

foreign country, and least cf all

leaders

religious

whose counter¬

part in the Soviet Union had been
destroyed by the tens of thou¬
sands,

visiting

about

land.

The
in

leaders
mere

a

foreign

surviving
church
Soviet Union are

the

puppets in the hands of the

Kremlin.

They must do their bid¬

But ap¬
the history of religious
persecution and the murder of its
leaders has made no impression
ding

face liquidation.

or

parently

some

on

men

of

who

God

chosen to compromise

this

country,

shown around.

people

the

would ,seem

Have

Ostrich
so,

been
our

re¬
calcitrant masses cf Russia that
it is fu ile for them to resist the
Communist regime, as they have
been
ever
since 1917 and paid
for it with millions of lives. Are

representatives of the
mighty American democracy hob¬
nobbing with the
Soviet mis¬
sions?
Are
they
not breaking
bread and drinking toasts to each
other?
It helps the Soviets
to
alienate the friendship which the
Russian masses, in their misery,
the

not

American people, it

have for the

helps allay all hope of liberation

coming from the peoples still free.
if, God forbid, the day should
when oppressed victims of
communism should lose all hope

And

come

for

understanding

our

leaders

It

for they are pre¬

by word and
deed to go down into history as
the "Gravediggers of Freedom" cf
paring

the
so

themselves

current century,

the freedom

dearly bought by the founding

fathers

and

the

generations

that

succeeded them.

What, for example, did the in¬

stigators of the farm delegation
exchange with Soviet Russia ex¬
pect to accomplish for America?
I

doubt

if

the

editors

and

and

pub¬

en¬

fight

couragement to Keep 011 tne

against their oppressors and make

regimes,

their

with

will be facing

we

a power

then
which

will be invincible.

If that is what

Americans

by

want,

all

means

carry on

this delegation exchange

madness

to

While

epidemic proportions.

could
learn nothing, absolutely nothing
cf the slightest benefit to cur ag¬
ricultural industry, fcr example,
the Soviet delegation has carried
away and will continue to receive
delegation

our

Americas
of

leading

housing

manufacturer

construction

equip

ment, I spent many months there
travelling widely before the Sen'
World

ond

Ministry

War.

of

Moscow

arranged

with about

me

One

day the
Industries in
luncheon for

Local
a

100

technicians.
information

how

engineers and

They

were

to

seeking
their

solve

housing problem.

In my Russian
remarked that on
the

I

address

basis of my observations

through¬

Russia I would say that
about
of all dwellings would
have
to be razed before there could
be
out

70%

thought of modernizing liv¬
An elderly engineer

any

ing quarters.
"You

rose:

Marcus.

are

mistaken,

Ninety-five
be

would

more

Mr

percent

accurate."

Of

few months later, when
the purge began to rage in
full,
course,

such

a

in

remark

a

might

have

to

a

landed

executioner's

the

foreigner

the

engineer

chamber

pronto.
The recent

war, of course, has
worsening of housing con¬
ditions.
That is why a commis¬

seen

a

sion has been rushed here to learn
all it can from our free enterprise

experience,

the

prise they

out to destroy. And
people are falling all

of

some

free

very

enter¬

are

our

themselves trying to ingrati¬
ate themselves to the Communist

over

gangsters, not knowing that these
people do not represent the peo¬
ples of Russia, not realizing that
what
they are trying to do is
intended

to

help

the

Soviet

re¬

gime, which is bad for the Rus¬
sian
us

A

and therefore bad for

masses

well.

as

Delegation of Soviet Editors
this

At

moment

very

large

a

techno¬

Soviet

information to help
strengthen the Soviet economy,

States.

to

strengthen

minds who for years on end kept

to

communize

scientific

invaluable

and

logical

38

Fcr

ment

sworn

whole

world.

the

the Soviet Govern¬

years

its

on

enemy

an

has

own

been

not

delegation

prepared

to

the

editors

the

enter

Those

vilifying

of

good

These

the

are

master¬

of

name

America at home and all
world.

has

United

the

are

the

over

people

same

able to solve its fcod problem. By

who day in and day out kept re¬

their

peating

tion

admission

own

of

meat

foodstuffs in
before

1954

the

other

and

was

produc¬
essential

lower than

they

came to power, de¬
enormously increased
population. To leave them stew

spite

the

in their

juice helps discredit
before their own people as
as
gullibles
abroad
who

them

own

to the world such state¬

ments

of

Simonov

K.

Nov.

follows

as

be

can

ideological front,

we

shall fight not

sistance

but

by

is

and

Stalin

what

the

destroy their tyranny. But to do
we are doing today is hurt¬
ing the cause of freedom in Rus¬

enemy

sia and

by passive re¬
active and

an

enemies.

our

on

the

enemy

On

must and

we

Party of Lenin

our

in

is

This

teaches.

accordance with

Let

breathing

no

the

unceasing attack

against their op¬
pressors and hasten the day when
the Russian peoples will rise to

pen

Pravda,

in ideological warfare.

space

This

It helps fan the f.ame

discontent

the

the

22, 1946:

"There

to paradise.

of

from

in

think that communism is the road

tradition

.

.

.

consider us nasty
the mouth of the

the U. S.

what

which

hurting our own interests
lay with these freedom-

yearning peoples.
Hobnobbing With Communist
And
lible

if

here

anyone

so

or

ignorant

is

gul¬

so

to

as

people.

believe

that

From

this is praise."

And

who

"enemy"—

the

was

A., of course, the people
who
only
a
year
earlier had
helped save the very government
of Russia from destruction. Maybe
what

deserve

we

Murderers

been

have

we

getting frqm the Kremlin by re¬
fusing to repay the $11 billion,
return
the
of
naval
hundreds
lend-leased

this
hob-nobbing with the
Communist murderers is going to
lead
to
lessening tension
ar.d

vessels

promote peace, anyone who hopes
that this is going to induce the

the

labor camps and jails,

Soviet leaders to give up their
goal cf world conquest for com¬
munism, Nikita Khruschev has

War

Korean
tens

of
and

tens

We

should

they

known

will

shrimp
That

have

to

wait

until

"a

fellow

whistles."

warning, too, I
leaders

like

back,

unless

more

them

am

courageous

afraid

our

water

so-

on

wiser

a

and

people in Amer¬

sponsible
refused

be

dupes

and

incompetents,

diplomatic bed¬
State

have

been

bulging

reports from our Moscow
Embassy since 1934. But the re¬

cf

of

dol¬

could have

and

with

read

hands

billions of

of

our

of

The files of the

was.

Department

ica bestir themselves and take the
lead in this particular field out
the

who

cost us
American

has

which

thousands

lars.

to

gang¬

the shoot¬
ing down of unarmed American
planes,
the
instigating
of the

lives

warning

to

release
innumerable
Americans
languishing in slave

sters,

when he assured the gullibles that

already served

called

totally

family?

their

convince

to

gangsters

cluck's
our

be

be entertained and
It helps the Soviet

will roll off the minds of

"Gravediggers of Freedom"
Have

would

Union

Soviet

greatest beneficiary. It car¬
ries a priceless propaganda value
for them to have delegations roam

have

with evil.

derive a singte bene,-

never

the

the

approach anyone in

10

could

us

would

churchman

Russian

No

joined

voluminous

them

had ever

question.
have warned
while we in America

of

clusively that it is a propaganda
trick of the Kremlin hierarchy.

The

been

visitation
Russian church¬

the

from

government

they learned

wresting

Oct. 6, "the

exchange

an

brainwashed?

1934 and April,
could have arrested the

hurricane

reported in the

as

New York "Times" of

cf

between January,

1935,

Union.

informed

President

that,

fight for
Stalin, had

menacing march of the

church

Soviet

the

with

cf

exchange

to

5

between

Council

The

to

Ambassador

the

of

sur¬

hundreds

for

or

from

by

Winstcn
late

Hopkins.

and

the

their

the

rendering

of

to

Sir

then

D.

his trusted socialist

Communism

popu¬

that

However,

up.
came

Churchill

the

by

own

East, the Communist

Russia

President

torn

and

of

masses

Council

Oct.

on

leaders

men."

Birthright

Enemy

an

be

to

Churches of Christ in the U. S. A.
decided

Many

well

National

The

came

Giving Away Our

first

very

liquidated.

idea

communism.

etc.,

leaders,

religious

builders,

the press

Thus

their goal, they
intellectuals, in¬

sters ever achieve

gime

today.

uninformed Amer¬

ulation. Those

delegations

is

Soviet

imminent des ruc¬
tion by the German war machine.
The same stupidity is to be! "found
among other segments cf oi|r pop¬

technological rifling
in America has helped build the
menacing power the Soviet re¬

That

dollars.

the

save

blood

our

from

we

have done very well with¬

to

effort

an

and

dollars

cf

billions

regime

find

the

murder gang ever
regime
which
has
slaughtered and
maimed about
150,000 American boys right after
we had
given ample evidence cf
our friendship by pouring out cur
treasure running into the many
known,

in

should

a

representing

world's greatest

After

relatively amenable.
recognition cr loans,
we

Asso¬
Soviet build¬

House-Builders

a

mission

ing

Government

talk

by Mr. Marcus before
the
Advertising Managers Division
cf Trenton, N. J. Chamber of Commerce.
Sales

the

with

honeymoon

same

score.

Tribune"

and

peace

bent

hell

are

we

head

to
*A

has fallen

economic

nist

course,

Soviet regime.

But there

vision

insults

any

soil.

more

third

a

in

for. greater
military espionage.

had

end

Once

good

no

us

gangsters

walking into more traps.

wise

to

and

We have always been on the giv¬

for

that

come

ever

barren

on

its

leaders

on

in
becoming

into

us

communism, to
prestige all over the

enhance

the

ing

lawyers

dealings with the

rescue

ceived

editors',

But No! That lesson too

rulers

ing

could

and

.on

to

Germany, Hungary and Poland.

keep

orders

t-Ught

Washing

in

perpetrated deliberately

lation in the

we

of

officials

sec¬

deadly

honeymoon
with
Communism would have

fraud

hating

Yet

hoped that this

have

educators,

nities

From

rational

and

Normal
would

: ,
people
.

our

worth

our

economies

the

years

nations

the

In

sight.

after

today.

case

had been promised

dollars'

of

this

in

relief

our

longer the

We

But the road

free

scrupulous,

up

eternally over our
taxation in America
bordering on confiscation, and no
with

billions

no

militarily,

the

and

atomic-hydrogen

an

ond

to

stifling

within

few

the

of

and

eco¬

of

one-

where

hanging

war

heads,

when Russia

industrially,

for

race,

prostrate,

lay

chances

is

the

hampered

of

international trade.

is

re¬

lack of in¬
the Second

oppressors,

dustrialization,
World

the

to

due

the vast majority to bow

01

their

to

far¬

sounded

bar¬

know

we

as

simpletons

not

with

trade

trade

are

do

and

decades,
We
those peoples

with

free

abolished

was

us

for

trade

because

cruel

most

regimes

cannot

your

impotent

"Before

reason

very

peoples

pressed

lash

destroying

and

nomically

you
your

fetched at that time
was

repay

human

the

of

ircm

world

a

dead

is

freedom

third

revolution in

freedoms." While it

world.

whole

the

of

For

communi¬

objective—the

greater

will

we

a

inherited

have

order

cons

Kremlin.

trading

and

country

as

own

Is

country,

by creating

the military

after the war. At
time nothing, absolutely

we

where

>

will help us industrialize our

cans

worth

mismanagement

peace

The

cf
of
industrial

power

Thus

have been travelling a one-way street,
emerged "cheated and defeated."

have

the
millions

against

war

strengthen

same

such

Soviet government, we
and

prose¬

nothing, was demanded in return
that could benefit this country.

have no trade relations with the
its satellites. Says, in our relations with the
urges

to

striking

objective of Russia the "communization of the whole

world," strongly

•

.

items

the

for

hundreds

but

dollars'

of

on

the

of

Nazis,

missions for Ameri¬
business firms between 1920 and 1939, in pointing out as

considerable time in Russia

Administra¬

handing out to Stalin hot omy

cution

Former Russian immigrant and government employee, who
has spent

of State, his
the Treasury,

01

Lend-Lease

own

the

j

Harry Truman, was

Secretary

own

own

By J. ANTHONY MARCUS*

;

Moines "Reg¬
who spark-

the Des

of

lishers

plugged the movement
asked themselves
that

tor

;

who,

House

White

ister.

his

Communist Governments?
J

the

ex-President

Should We Trade With the

J

in

according to recent revelations by

government

people

in

heed

them

to

or

even

to

them.

everything
is
going to
honky-dory.
American news¬

Now

Moscow
with
the
What is true about the farm Soviet editors about to depart for
our
shores, to spy on us, to dig
delegation exchange
is
equally
out everything that is bad about
true
of
all
other
exchanges to
us
and to parade it later in the
follow.
And it looks as
though
Soviet Union as representative of
the epidemic
is growing.
Take
ignorance

-

inspired

cowards.

for

example the stupidity of in¬
viting to our shores a
Soviet

housing delegation. I know some¬
thing about housing in the Soviet
Union.

paper

are

As

representative

cf

in

correspondents

drinking

toasts

America and Americans.

And our

gullible newspaper boys are

ing,

toast¬
York
"the

according to a New
dispatch of Oct. 5,

"Times"
.

Continued

on

page

35

I, i

Volume

182

Number 5486




..

.

The Commercial and Financial Chronicle

..

.

'

V

i

^Steady customer gain brings
Northern States Power Company
21

straight

years

of

revenue

growth

800,000 customers

Since 1933,
tomers—every

NSP has added 280,915 new cus¬
year showing a gain—to play a

of steady growth in
operating revenues, which in 1954 reached a new
high of $117,739,000. Long range business forecasts
indicate that this customer growth will continue.
In fact, building estimates point to more than
15,000 new homes in our service area in 1955.
major part in NSP's 21 years

This, plus the fact that our average residential
customer uses about 90 more kilowatt hours per

year
a

than the national average, leads us to expect
increase in electric sales within the next

100%

ten years.

More than 42% of our electric revenues comes

from
least

our

ever-growing residential-rural sales—the
business fluctuations. The re¬

sensitive to

mainder of
tion:

our

income shows

a

healthy diversifica¬

industrial, commercial and other sales.

Have

your

secretary write for a copy of our

Annual Report.

Power Company

Northern States
Minneapolis 2, Minnesota

Serving

a

thriving area in Minnesota,

Wisconsin and the Dakotas with electricity and gas

(2323)

19

20

British Credit

Squeeze Ineffective

short of the breaking

spiral

Calling the British Government's credit

led only to more

increase in

the wages

worthy

The November
note-

no

in

down by

were

£41

this

additional

million,

but

the

from

comes

the

to

total

of

bank

'

interest.

assortment

for

is

indeed

be-

to

reason

proximately

one-half

of

tionalized

banking

commercial

electricity industry out of

has

creased

balance

credits has actually induring the period of the
so-called credit squeeze. In all

to reduce its short-term

bentures

indebtedness

to

banks

naner

or

upon

The

both

or

will

right

go

models

and

creating

on

after year.

new

features

the

This

disappointing.
deposits
£250

amount

result

is

It

is

true,

months,

but

decline

has

credit squeeze is ineffective lies
in the fact that the private sector

bank
about

have

million

of

utterly

0f

declined by
during the past 12
a large part of this

British

vided*

with

liquid

and

sources

is well
financial

economy

that

prore-

owing to large-

scale capital expenditure by the
public sector of the economy, these

of

net

the

-

.

been

in

the

offset

by the
circulation,

note

consumer
finance
business, octane rating for its fuel. I am
making small loans usually $3.00 Pro«4 to say that Chrysler Coror less,
and discount loans to in¬ poration was the first company in
the
United
States
to
dividual
design a
borrowers;
and
to
a
m7iphUfpwTpVtpnt °in nurohasing working gas-turbine engine that

the

account sr

eeefvable

30

the

1955

As

of

Sent

onerated

romnanv

car

-

to pay very high rates of interest
which attract deposits from banks,

This does not

have any less deposits.; Under
modern
banking
system

cient

our

"one of the marvels of

plex financial society,"

a

vate

any money

the

aid

of

which

that the total of

bank

pens is

that

an

into

an

other

words

i01}

which

the

i

tends

to

effect

same

of

mcrease

position
the

sphere

demand

is

as

a

total

credits

in

which

financed

non-banking

not

are

by

resources.

expanding
means

The

of
in-

surance

companies have also expanded the amount of their lend-

ings to business firms. In a known
instance, the proprietor of a small
firm, whose overdraft with his
bank has

the

aid

of

to

are

borrow

not

in

from

a

non-

make

effective,

squeeze

their
more

the

so

.that

loans

than

the

it

reduction

should
offset

borrowers.

It

increase

loans

is,

of

to

life

course,

un-

resources

ing to the

by

companies

for such

den of the credit
fap
0f

so

unevenly

borrowers.
persons

on

In

and

being squeezed

squeeze

should

various types

particular, prismall

firms

are

hard by their
bank
managers,
while • bigger
firms are well in a position to
continue to get all the credit they
need.
The unfairness
of

one

the

of the system is

reasons

why

British

ample
Ow-

rates paid

inconvenienced

by

sQueeze> it is worth-

the insurance
companies
to sell out some of
their Govern-




A

P

rirst

Walker■

Q

ni

t

Rr

nn

•

&:

1 wLcinw
Winslow

Whiteside

'

Tne

West &

Inc.,

Doolittle &

Co., Clement A. Evans
& Co. Inc., Scott, Horner & Mason, Inc.; Stein Bros. & Bovce;
Rouse, Brewer & Becker

Stirhng,
Co.; Barrett & Co
C.
F. Cassell & Co
Inc., Irving J
Rice & Co., Inc.; C. T. Williams

Morris

&

their
at

and

in methods—and

beat

the

&

expenditure in conwith the expansion
of

producing capacity. The rate
which interest
charges would

other

have to

you

personnel

and

facilities

its
take

to

sacred blueprints. They

are

sub-

if

in
constant, accelerating motion at
level
You have to move

every

fast to beat your
competitors
when you do beat

them>

new

and

you gen_

competitive energies

on

their part. That's the nature of the
business and we wouldn't want it
any

other Way.

Competition of this kind is
ative.

It

makes

ere-

innovation

in-

Murray Sees. Corp. Opens evitable.
m?ni\nr

ties

isj

v-Mnrrav

Corporation is

$ppnri-

engaging

seruHties business from
securities

in

offfces

a

at

business^ from of ices a

Officers
utiicers

S S'

are

William

Zwang, President
Mildred
ana

and

z-wang,

iviu ray
Murray

Treasure

,

vice-presiaent

Secretary.

a Billion i or ImnroveinetUc
mmon for improvements

The

way it looks right now, taking into account the probable in.

in demand for our products
and plans for modernizing our
plant and equipment, in the next
five years we will put over a billion dollars on the line for capital
improvements and expansion. This
crease

amount is exclusive of toojing It
includes the cost of land, buildings machinery and other equip.

m??t.
Part of that total will
.

vested

in

turing

passenger-car

be

in-

facilities for

manufacbodies. An-

other sizable amount will go into
new assembly plants and
improving old ones. We will also
spend large amounts on the ex-

building

pansion
and
modernization
of
plants to build engines, transmissions and other automotive
^nents, and

to

ings

com-

house

new

office build-

the

on

management

staffs required for this growth.
0ne of the most important investments in

our

forward plan is

a very substantial amount for pro-

vidin® actional buildings
laboratory facilities for our

and
en-

gineering activities. Our expanded

engineering
voted

perimentation
prove

and

our

find

and

automobiles and trucks
new

ways

to. adapt addesign to ad-

vanced

production
facilities.
"

In

ex-

testing to im_

vanced automotive

our

will be de-

program

primarily to research,

addition,
research

we

in

methods

and

expanding
development

are

the

you

ComPetition in this industry is

erate

forward planning is continuous.

to those I of the gas-turbine and other excan.
perimental automotive engine's, in

company

developments

new

Co., inc.

the

field

of

electronics,
cles,

nuclear

in

and

energy,

in

it applies to vehi-

as

the

applications

of

solar energy.
Thig whole forward

engineering
Chrysler Corporation is planning to stay in the
forefront of our fabulously creatiye
technological
civilization.
We are moving ahead as an automobile
company.
We
are
also
planning to
move
forward
in
other ways as we uncover promprogram means that

It demands efficiency
and higher productivity year after
year> U brings values Ub and costs ising fields for diversified activity.
down' But beyond a11 these things,
Our plans to invest in expanded
competition creates interest among plant and equipment and in famill^ons of Pe°Ple in-new and bet- cilities for research are based pn-

|er products. It creates markets—
ancj ^bese markets mean

jobs and

opportunity
other

in

marily upon our confidence m the
dynamic future of this country.

virtually
every They are also based upon our conactivity in all fidence in the future of Chrysler
Corporation as an eminently suc-

economic

parts of the country.

T. F. Neblett Opens
toq
r

w

i

ancftfc; poiif
nV ■
i'
J

F. Neblett
ties

?•

conducting

is

business

from

One of the most powerful stim-

thomas

Thomas
a secun-

offices

R. G.

Associates

to

engage

for

in

in

a

securities business.

know

'

fred

Kelley

A.

have

staff of Hooker &

gomery Street,
New
York
and
Stock

and

Exchanges.

San

the

have

autoinex-

facilities

the

growth

to

of

keep
the

pace

country

compared only with the spirit anc

the company when i
making its big move m tne

ener£y of
was

Thirties.
I have

given

you

Slze

of

our

next five

the figure

of a

the probable
investment over tne

billon dollars plus

as

years. But

it may veiy

weB be that if the company co tinues to move in the years aheaa

and to get1 the jump on their com- as B has in 1955, we will
find^1
petition if they can. At Chrysler necessary to revise our investment
the
Corporation, we have been doing plans upward,
.

Wini-

joined

Fay, 221 Montmembers of the
,

that

been

with

Calif.
.

O Connor

also

companies

panded

(Special to The Financial Chronicle)

FRANCISCO,

investments

equipment are
running at the highest rate in the
history of the country—very close
t0 $30 billion a year.
mobile

H.

business

plant and

vesting very large amounts in

Hooker Fay Adds Two
SAN

at the
investment
in

economy

.

that

new

You

Thomas

.the

.

know

Tuggle Opens

WOODSON, Texas
B°y G.
Tuggle has formed Roy G. Tuggle
and

cessful company and as one of the
creative centers of the economy.
present
Iri responding to the competitive
J"1
b inves»imenx in
^
u
the
plant and equipment by industry chal1lenge^tha1t laced 11 \n 1Q54 ' u",
f.
generally to prepare for the tre- whole Chrysler organization has
mendous markets that are
going to developed a drive and a momenopen up in the years ahead. You tum
in my experience can d

ulants

,n

608

at

Sohth Hill Street.
South Hill Stiwt

the

capital

nection

In the automobile business you

Pn

Co., Goodwyn & Olds,
Jones, Kreeger & Hewitt Mackall

opinion is gradually hardening in
a higher bank rate.
Many
people believe that if only high

on

^

.

have to be ready for new and
Qon^ritioafrnrn^p m' radical developments in product
securiues v-oiP->

tv,

favor of

higher interest rates, not only on
their working
capital needed for
their increased
output, but also

never

changes'

very

pay

purposes.

high interest

borrowers

u*iCrf
while for

have

T?

fortunate and unfair that the bur-

t

_

Insurance

&

in

other

always been covered by
insurance
policy,
was
interest rates were
allowed 'to
informed by his
bank manager produce their automatic effects, all
that the limit of his overdraft
had would be well. In
reality the sitto be reduced.
Thereupon he went uation is not so
simple.
So long
to his insurance
company which
as
there is persistent
consumer
was only too
pleased to lend the demand
resulting from over-full
full amount
corresponding to the employment and the
wages spiral,
surrender value of his life
policy, producers will
gladly
his

Corporation; H. P. Wood
Co.; Auchincloss, Parker &

in

considerably

the

non-banking

curities

nice

a

rw

non-

very hard those borrowwho depend entirely on bank

vate

the

position to fi-

a

borrowers

credit

ers

increases,

amount.

in

squeeze

cir-

corresponding

is

rullv'appealed to some people of
arnur! include—Union Se- standardized car that
writing group inrdndp—tin inn Se

inc.,

will be necessary for the banks to

a

produce precisely

their

Instalment

only

deP0_slfs

the

•

-

itself with

aceount,»*credits,

velocity of

of

banking lenders. In order to

idle deposit is conactive deposit.
In

the

sector

would-be

deposits
remains unchanged. All that
hapverted

effects

banking loans, the official policy
is largely helpless.
Admittedly, all debtors or

deposit is withdrawn is bound to
be paid into some other
so

limited

the

of credit squeeze

money resources as
it
before the transaction.
The

with

offset

squeeze, f

nance

much

check

Treasury

To the extent to which the pri-

banking system at all. It merely
changes account, or possibly it
may change bank, but the banking system as a whole will have
had

to

credit

com-

withdrawn from the banks in such
circumstances does not leave the

as

under

disinflationary

aptly
by Whittlesey, in his
"Headings in Money and Banking,"
described

as

loans

guarantee. Such Budgetary inflation is in itself more than suffi-

that the banks

mean

issue

to

department

advantage of those opportunities.
These plans are not fixed and

-

proceeds will

could be installed in a passenger
of normal Slze and which
liquid resources tend to increase 76'loan offices located in Florida
could be driven on city streets,
At this rate the prospects of an
further. There has been a con- Ceorffia
Kentucky
Louisiana' Undoubtedly there is a Plymouth
adequate degree of disinflation do siderable increase in the volume
Marvianri
Pennsviv'anH
Texas' with a gas-turbine engine being
not appear to be very bright.
0f bank deposits since
the war vSa 'anri "w/st' VirSnia
test driven in city traffic on the
Nor
is
this
the
whole
Fnr
the
story, and the amount of easily marketvear
endpd
Tune
30
streets of Detroit right now. There
Even to the inadequate extent to able Government securities runs
1955
T in coin
Service Corn
had are a great many Problems ahead
which
banks
have
curtailed into
astronomic
figures.
Even gross onerating kicome of $4 201
of us before we are ready to Put
credits, many of their debtors though the Budget is balanced in 499 and net fnrnme of $896 909 an enSine of this kind on the marhave been able to borrow non- the sense that current expenditure
Unon comu etTon ^f the current ket>
but someday thia
some
banking funds. This has been par- is covered by current revenue, HnanciM outstanding
capitaHza- other new kind o£ engine wil1 ob"
ticularly easy for firms engaged there is nevertheless deficit fi- tion nf thp comDanv
will consist solete every car now in use' What
in instalment credit transactions,
nancing for the purpose of capital
Of funded deht- 146
if the Sas-turbine should come in
The
margin of profit on such expenditure by the Government 644 shares of
common
stock and ten years and an -even more rev0"
transactions is so wide that the and by the innumerable
public Hh non shares of $150 cumulative lutlonary enSine ln twenty? What
firms concerned are in a position corporations which are authorized
Lt
cumulative WQU,d that do to the idea that has
increase

Every division and

in our company is looking
ahead,
sizing up its future opportunities
and making plans to expahd

year

■

new

It isn't too unlikely that within
be added to working capital.
the next decade there will be an
the proceeds probability the expansion of nonThe debentures are redeemable, entirely new kind of engine powof
a
governbanking credits has more than at the
option of the company, at ering your car Already, as you
ment..- <*uar- offset such reduction in the volgeneral redemption prices rang-,, may have heard, the whole inanteed long- ume of bank credits as has been
ing from 104% to par
and for dustry is researching and experiterm loan. Adachieved. In the circumstances it
the sinking fund at prices reced- menting and testing to find out
vances
to
ine
is no wonder that over-full em- ing from 102%
to par
plus ac- how to build a production model
private sector ployment continues unabated and crued interest in each
case.
°f 3 gas-turbine engine. This is
Paul Einzig
of t h e econ- that
there
is
no
sign
of
any
Lincoln
Service
Corp
with an engine that has no pistons—
omy
were,
if slackening of consumer demand,
executive offices in Washington, that needs a sparkplug only to. get
anything, higher, and there was h
The main reason why the bank D.
C., is engaged primarily in started
an engine that needs no
also
a
rise
in
deposits.

program.

im-

been presented to the public, and ject to change as new facts, new
the net with competition as hot as it is, ideas and new developments inthe de- you can be sure that the industry dicate the need for change.
Our

proceeds from the sale of

na-

on

cars

yearly

improvements

of

ment. But this is hardly a
start
our
long-range
investment

upon

Johnston, Lemon & Co., on Nov.
29, headed an underwriting group

lieve, even in the absence of
statistical material, that the combined total of banking and non-

due

the

demand

of

stimulation
that

more

the further

The company intends to use ap-

There

repayments

by

View bom Dtboit
is relying more and
automobiles, there is

5V2% Debentures

credits.

was

entirely
to

DaiAMaiAAlii

provements in automobiles. The
record sale of cars this year has
ment securities in order to satisfy offering $4 000 000 Lincoln Serv- been due in part to the drastic,
the demand for short-term loans, ice Corp. 5V2% 12-year sinking industry-wide
advances
in the
Here again the amounts granted fund capital debentures, due Dec. models introduced to the public
by the insurance companies are 1
1967
at 97 85%
and accrued last fall. But this fall another wide?

Britain's
It is true, advances

credit squeeze.

Offer Lincoln Service

borrowing from non-banking sources,
to suspect this has led to further

Concludes nothing short of breaking
spiral could solve problem of Britain's economy.

progress

.

reason

disclosed

figures

■

Thursday, December
1, lggg

.

.

H«|C|]IIACC Fj()SDGCIS
HWlilVWH W JT

Johnston, Lemon Group

borrowing.

LONDON, Eng.:
bank

of the wages
the problem

solve

ineffective,

squeeze

Dr. Einzig says prospects of an adequate degree of disinflation
in Britain does not appear to be bright. Says credit restriction
and holds there is

could

the British economy.

of

.

4

Continued from page

become prohibitive must be very
high in the circumstances. Nothing

By PAUL EINZIG

has

Financial Chronicle

The Commercial and

(2324)

Francisco

lot of planning ahead for
future
building. In the past year we ina

vested

$130

million

in

expanded

and modernized plant and

equip-

We, like other companies,
invest
our

sizable

productive

amounts

to

machinery

will
keep

up

to

the minute. Much of this machin-

Number 5486

182

Volume

...

The Commercial and Financial

Chronicle
(2325)

will be automatic. In recent

ery

months we have all heard a lot
about automation, and it is not my
intention to go over that familiar

ground again today in any detail.
However, I would like to make a

comment on this matter.

brief

that in the rapid de¬

I believe

automation at the

of

hundred
from

present time there are three tre¬
mendous advantages to the econ¬
omy.

social

colleges

throughout

went to school

Advantages of Automation

velopment

Four

teachers
schools

1

'

Teachers Study Work
Of N.Y. Stock
Exchange
studies

and

the

high

country

the trading floor
of the New York Stock
Exchange
Nov.

23

to

on

see

how

largest securities

the

auction

world's
market

operates.
After the close of the
day's trad¬

ing)

First

Automation is coming

—

at a.time when the total
population of this country is in¬

a group of Exchange special¬
ists put on a special demonstration

along

for the

creasing

phases of market transactions just
as they occur in actual trades.

much faster than
of people available

number

the
for

teachers—enacting all the

It was the largest group visit to
the trading floor in the
Exchange's

the

163-year history. The teachers

State

in

New

York

are

attending the 35th

Annual Convention of the National

Council

Hotel

of

Social

Statler.

Studies

The

the

at

Council

is

a

Department of the National Edu¬

National

Helen

N.

Council;

McCracken

Teachers

,

Professor

Carpenter

College,

Council; and Professor William H.
Cartwright of Duke University,
Durham, N. C., Second Vice-Pres¬

the

cake

visitors

served

to

Professor

C.

Edwin

be

Carr

R.

of

the

in

the

Exchange and

admitted

Cooke

&

York

to

New

Dec 1 will

on

partnership in
120 Broadway,

Stock

Exchange.

membership
Stock

will

in

Exchange

become

Grumet

&

a

the
and

on

York

Dec.

1

partner in Brand,

Co.,

College of Education of the Uni¬

New

versity of Colorado, President of

New York Stock

York

New

120

Broadway,

City, members of the
Exchange.

Lundborg Staff.

SAN

FRANCISCO, CALIF. —
Thomas, Jr. is now with
Irving Lundborg & Co., 310 Sansome Street, members of the New
Cecil T.

York

San

and

Francisco

Stock

Exchanges.

instance, that in the
the population will

for

next ten years

by 20% and the portion
population available for
work by only 6%. In this situa¬
tion, with proportionately fewer
hands to do a lot more work, au¬
tomation is going to be a very
timely blessing indeed.
increase

the

of

Second—By increasing our effi¬
volume production

ciency in the
of goods and

services, automation

will

control the

help

us

inflation

toward

which

pressure

is

always
present in a dynamically expand¬
ing economy like ours.
•
Third

Like every other ad¬
in efficient production, au¬
tomation will raise quality, lower
—

vance

costs and widen markets. And this

will

put

drive

Over and

to

the

make

into

steam
the

ci'

whole

the

forward

economy.

beyond these benefits

automation will

economy,
even

desirable

more

than

the

jobs of factory workers.
Untold numbers of them, for ex¬
ample, will be trained to move
into more highly skilled jobs such
as
millwrights,
repairmen
and
ever

electricians—at better ratings and
better pay.
Investment of the kind

ing

made

by

be¬

now

American

business

the
broadening
strengthening of the whole

means

nomic

base

It

means

means

which

upon

ciety is built. It

and

more

strength

our

jobs. It
security for

the nation. It

means an

wealth—an

which will
to

go

enable

civilization
I

am

we

increase in
increase

people
kind of

as

us

building

on

so¬

better

and

the

national

and
eco¬

confidence.

means

a

the

all

want.

thinking of such things

better- reads,

grounds,

as

hospitals, play¬

better

enforcement

R

of

laws, and more attention, for
instance, to the recreational needs
our

of

our

ing

teenagers. I

of

the field
This

am

needs

humane- objectives.

the

creative

and

ideas

of

on

ways

those

come

this

get

over

and

results.

the

on

confidence

great

we

on

And

if

solid

and

we

go

on

foundation

good

basic

way

will and

will continue to achieve

things for ourselves and for

To Be Benton Partner
William A. Benton, member of
the New York Stock
Exchange, on
Nov. 25 will become a partner in
Benton & Co., 11 Wall Street, New
York City, members of the New
York Stock Exchange. Mr. Ben¬
in William A.
Benton & Co. which has been dis¬
solved.
was

a

/fcliL
When you
be

partner
•




sure

CMy

Ljjb-Wi'

(yvfc iyw^,

give gifts of steel you can

they will last longer.

because steel is one

That

s

of the most dur¬

Gifts of steel won't

break

or

as

Christmas gifts years
As

a

necessary

to manufacture these prod¬

help make possible

later.

leading supplier of basic

as

you see

a

wide

our

constant

goal to produce better and better steels
—America's great bargain
the
.

metal—of

quality and in the quantity wanted
.

when it is wanted

lowest

possible cost to

National steel
GRANT BUILDING

a

SEVEN GREAT

...

our

Great

STRUCTURE

Lakes Steel Corporation

•

Weirton

Steel Company • Stran-Steel Corporation
Ilanna Iron Ore

Products

Company

Company

Corporation

•

•

•

•

National Steel

The Ilanna Furnuce

National Mines Corporation

at the

customers.

corporation
PITTSBURGH, PA.

DIVISIONS

WELDEI) INTO ONE COMPLETE

STEEL-MAKING

above.

At National Steel it is

.

steels

we

variety of beautiful, long-lasting gifts

shatter.

shape and
beauty better. And because they are
lasting gifts, they will be remembered
They keep their original

* ♦ ♦

ucts,

such

able metals there is.

American

the world.

ton

?

and over again

ten¬

progress,

country that's the

agreement

values,

A

v.

and means. But out

disagreements

will

building
of

W,V*- <■

"Merry Christmas"

people generally.

just as
progress
emerges
from the hot
and heavy and hectic
competition
among the automobile companies.
we

■

our

Along the way we will generate
plenty of disagreements and ten¬

In

mm

ingenuity and idealism

of the American

sions

w

Looking for gifts that say

And

fident investment in the future on
the part of business, and the hard

of

mv.

of education.

scientists and engineers, the con¬

sions

>V.«Kv.

country

decent,

work

■■

in

the energies to keep us moving
toward those objectives will come
of

'

vA-Wv;

has
reached
a
point where the vast majority of
people agree on a number of big,

out

::

also think¬

tremendous

our

'

vXyX-'-Xv.-:-.

.

(Special to The Financial Chronicle)

productive work. It has been esti¬
mated,

a

York

Lucas,
City, members of the

Joins

Leonard Grumet will acquire a

the

on

Stock

Brand, Grumet Partner

demonstration,

were

trading floor.
Lawrence,
VicePresident of the Exchange, wel¬
comed the group, which included
Ruddick

membership

New York

After the market
and

Edwin A. Meyer will acquire

New

ident of the Council.

cation Association.
coffee

Cooke & Lucas Admit

of

Trenton,

J., First Vice-President of the

21

22

This

BRANCHES

t

Bankers

and

OFFICERS, ETC.
<

the

be

second

bank's

in addition

had the

The-Bryii Mawr Trust Co.

following to say!

regular 50 cents quarterly

the

disbursement. If approved by the
shareholders and the regulatory

CONSOLIDATIONS
NEW

dividend and is

to

News About Banks
REVISED

will

stock

NEW

Financial Chronicle j,.

The Commercial and

(2326)

»We

opinion as stated
Justice John C. Bell, Jr. but

bv

authorities, the dividend will be are disturbed by some statements
on Jan. 25, and will increase
expressed therein. In his minority
the shares outstanding to 126,000.
opinion Justice Bell stated that
This will bring the bank's capi- the Bryn Mawr Trust Company is
talization to $3,150,000.
Surplus 'confronted with a death warrant
will
be
increased
to
an
equal —merge or die.' We have no plans
amount at the same time. Refer¬ to merge or die now or at any
ence
to
plans incident to the time in the future. We are in the
proposed second stock dividend banking business to stay."
Mr.
appeared in our issue of Oct. 27, Develin also stated that Justice
paid

CAPITALIZATIONS

tllc

At

meeting

regular

a

Beard

Directors

of

National City

of

of

the
First

The

Bank of New York

held

on Nov. 29, Alan McK. Welty
appointed an Assistant VicePresident, and William H. Os¬
borne and Willard Stripling were
appointed Assistant Cashiers. Mr.
Welty is with the bank's office at

proximately 70% of the bank's
growth" he said "has been nor¬
mal

Fifth Avenue and 28th Street, and
Mr.
Osborne
and
Mr.
Stripling
with

are

bank's

the

Personal

Credit Department at 42nd Street
Madison Avenue.

and
"

Following
Beard

of

Directors

York

Trust

Broadway,

of

of

the

The

Company

New

100

of

lTork,

New7

lin National plans the
bank

a

held

on

Nov. 29 Adrian M. Massie, Chair¬

Field

addition

an

he

erected

are

Green

as

in

Administrative

Division, and the

appointment

charge

of

William

of

P.

the
Kau

Assistant Vice-President of the

as

Company.
*

*

York,

Company

according

released

to

Nov.

a

30

by
Benjamin Strong, President.
Dr.
Taylor was made a Knight Com¬
mander of the

Queen

troller

to

opened

in

pending."

of

British

Elizabeth for

Empire by
his

services

rently has total assets of $35,000,-

Elizabeth,

Nov.

17

dent

in

issue,

page

*

S|S

Miller, area Vice-Presi¬
charge of The County

tions, completed 35
with

the

of

years

bank

of 50 cents per share

payable Dec.

16, to stockholders of record Dec.
1.
Also, that the directors are
recommending that the stockhold¬

their

at

ers,

War

II,

he

United
ergy

attached

was

Manhattan

District

States

serv¬

Nov.

on

27.

Before attaining his present posi¬
tion in 1949, Mr. Miller

spent 29
with the bank's Port Chester

will

en¬

In

the

atomic

advise

the

*

the

As Scientific Con¬

sultant to United States

in

to

Project,

Secret

program.

Taylor
arising

World

Trust, Dr.

on

field

of

matters

scientific

the

*

Certificate

the

of

Incorporation,

which will enable the directors to
declare stock dividends from time
to

time

their

at

Board

discretion.

tional Bank of Elmsford, at Elmsford, N. Y., with common stock
of $140,000, was
merged with the

County Trust Co. of White Plains,

ment

also
*

11

*

*

.

Vice-President

Long

Island

Garden

Trust

City,

Manager

as

Stewart

L.

of

the

New

the

Manor

of

Company,

I.,

bank's

Branch,

of

York
new

at

110

Covert Ave., has been announced
by Fred Hainfeld, Jr., President.
The

new

office, now under construction, will open about Jan. 10.
Mr. Lowe, has been with
Long

Island Trust Company for the past
12 years. He
saw
prior service
with the Bank of
Valley Stream,

Springfield
Bank

and

Gardens
the

Little

National

River

Bank

and Trust

Company of Miami, Fla.
July, Mr. Lowe was pro¬

Last
moted

to

full

a

position. The
fice

is

the

opened

by
Company in

offices
and

Manor

branch

Long

as many years.

Garden

Office

at

be

Trust

Other

with

Seventh

St.,

❖

of

Comptroller

not

retard

the

con¬

tinued

growth
of
the
Franklin
National
Ban k,"
of
Franklin
Square, L. I., N. Y., according to
an

announcement

made

Nov.

22

by Arthur T. Roth, President. Mr.
our

20

cally located in
sau

County,

offices
all

strategi¬

parts of Nas¬

have potentials
continued growth
in deposits and service to
the pub¬
lic. In
addition, we have a num¬
for

of

by

the

System

title

It has

the
Fed¬

that

the

the Dobbs

over

Ferry Bank of Dobbs Ferry, N. Y.
as

of Oct. 31.

An item

bearing

on

the

plans for the merger of the
Elmsford and Dobbs Ferry Banks
with the County Trust Co.
ap¬

peared in these columns Sept. 29,
page 1316.
The

we

the

and

Commissioner

itial stock dividend of
clared
of

the

by

Directors

York

State

Banking

be

paid as
possible.
The

as

Oct. 28

$6,094,750

con¬

sisting
of
1,218,950
shares
par
value of $5 per
share, to $6,337,250
in
1,267,450 shares of the same
par

in

value.

The previous increase
company's capital stock to

the

$6,094,750 was referred to in
issue of Sept. 22,
page 1182.
*

our

the

Board of Directors.

new

offices

in

these




areas.

Ap¬

It

necessitated by the fact that under
the existing charter no stock divi¬
dend may

proval

be paid without the

of the

*

and

Savings

the

Fund

Bush,

charter

National

at

common

the

title

Bank

of

the

Na¬

Pine

that

Bank

Bush,

stock
of

of

bank

of

Y.

N.

Pine

with

of

$50,000 under
County National

the

of Middletown has been ef¬
At the effective date of

fected.
the

consolidation
(Nov. 10) the
consolidated bank it is announced
had

a

in

capital
stock
of
$310,31,000 shares of common
stock, par $10 each, surplus of
$630,000 and undivided profits of
not less than

$221,217.

:;s

Directors
Bank

of

nounce

*

of

Philadel¬

in

branch

a

Suburban

Square,
approved by

of

Ardmore,

Pa.- was
thk State
Supreme Court orf Nov. 21, when
it

reversed

the

State

Commission,

which

turned

down

the

ground

Banking

that

a

year

proposal

First

City,

National

N.

J.

an¬

they
to

have

the

voted

to

shareholders

that 3,600 additional shares
of $25
value stock be authorized to

be

declared

stockholders

Jenkiniown

new

announced
on
Nov
21 by W.
G. Semisch,
President.
Application has been
shopping

center

the

were

the

to

cated

in

adjoining

that

the

Banking Board's conclu¬

sion that the community now has

adequate banking facilities at the
present
time was "a
bald
and
capricious

conclusion

without

a

County, we feel that its close
proximity to our other offices is
a

logical move."

as

of

a

11

banks

which

dividend

record

originally

the

branch, would be
forced
completely and success¬
fully to change the kind of busi¬
"which

ness

blood,

death

has

been

warrant—'merge

banks

the

which

ton

Fidelity

Philadelphia

-

Company,

Trust

Philadelphia,

Pa.,

member of the Federal

State

System

serve

charter
tional

merged
title

and
Bank

branch

The

its
Na-

Lansdowne,

Pa.,

of

as

at

Oct.

established

was

Re-

under

wlth

of.

a

21.
the

in

former location of the latter bank.
This

the weekly announcement of the Board of Govnoted

was

of

ernors

System

in

the

dated

Federal

Nov.

*

Reserve

Plans

5.

the merger appeared
of August 25, page

in

our

for

issue

786.

and

said

that

of

came

the

when

uo,

some

as

their

press

those

that

opposition.

did, the Brvn

Mawr Trust Co., the Narberth Na¬

tional Bank

cording to the Philadelphia "Inquirer" the plans were approved
that day by the directors of the
Wayne Title & Trust, subject to
the

approval by
the

of

two

the stockholders

banks

Jan.

to
10.

"According

and

the

to

Montgomery
County Bankers Association, gave
as their
principal reason the fear
that

such

off many of

ing, of

bank

a

our

would

depositors,

"drain
mean¬

time deposits since
the saving bank
accepts no check¬
ing accounts." According to the
d

ec

i

s

course,

i

0 n

"the

the

disapproval

proposed amendment
plicants'
charter
was

to

of
ap¬

and unwarranted and must
there¬
fore be reversed."

stating on Nov. 22 that the
action of the State
Supreme Court
in
approving the application of
the

Philadelphia
Saving
Society to open a branch
in

Ardmore

DeHaven

"is

Develin,

Fund
office

disappointing,"
President

of

16

*

"Inquirer"

rep0rted

the

"Directors
Qf

^

First

of

Scranton

of

following

15;°

gcranton, Pa. advices of Nov.

National

ScrantoJ

and

Lackawanna Trust Co. approved
an agreement to merge the two in-

s!1!0r!^'

J

to approval of

^

legulatory

a

au-

thorities. The merged bank will be

^Co
Trust Co-

&

ot ^ranton.

*

the

the

Trust

to

the

total

total

announcement

assets

was

made

Chairman, and William F. Kelly,
President, First Pennsylvania:
"Wayne Title, which has its main
office

in

Wayne

office

in

Strafford,- has

correspondent

4

the

of

branch

a

First

35

been

a

Pennsyl-

years."

*

|
The Nov.

and

of

over
*

fice

$6,$9,000,000 through the
payment of a stock dividend, and
surpius be increased simultaneousiy by $1,000,000. Subject
^ appr0val by the stockholders of
the proposed increase in the num0£ sbares of the bank's capital

s£0ck> tbe Board declared
^

dividend

S£0ck

a

share

tional
eacj1

of

of

capital

sbares held,

£W0

on

one

Nov.
addi-

stock for
payable to

stockholders of record at the close

business

0£

20.

Dec.

on

Capital

funds for this stock dividend and
in

surplus

will

be sup-

plied by the transfer of $2,500,000
from undivided profits and $1,-

500,000 from

the

Upon comdividend

reserves.

pletion

of

transaction,
will

bank

and

stock

capital

surplus

will

stock of the
$9,000,000

to

amount

$15,000,000.

be

The Board has called a special
meeting of stockholders to be held
Dec. 20 to vote upon the increase
in capital stock. It is added that
believes

Board

present

that

dividend rate
the 90,000 shares

justify

a

of capital stock which will be outstanding after the proposed stock
dividend. This represents an inof 25% in the cash dividond rate. A meeting of the Board
will be
0,1 Dec. 20, after the
crease

of

by J. Harold Hallman, President,
Wayne Title, and William L. Day!

for

111.

from

000,000 to

will declare

"The

Chicago,

increased

be

were

997,000.

vania

bank

stockholders' meeting. It is anticipated that if the stockholders ap$13,169,890 Pr°ve
the increase in capital
deposits were $11,- stock, the Board at this meeting

of
Sept. 30,
Wayne Title

the

of

of $10 a year on

proposed

employees will be retained
following approval of the merger,

and

Company

earnings

and

As

*

meeting on Nov. 15,
directork of The Northern

the

changed for 1.6 shares of First
Pennsylvania stock.
All officers

the

*

their

At

the

agreement, each share of
Wayne Title will
be
ex-

quarterly dividend

share

a

st?"dinf u,pon the consummation
stock dividend.

0
As

of

tional

Nov.

Bank

Peoples Na¬

the

17
of

111.* i'e"

Chicago,

capital
as
enlarged
from $250,000 to $300,000 as a reported
suit

*

a

on fhe 90,00
of capital stock to be out

°* $2-50

its

of the sale of

$50,000 of new

stock.

Bulletin of the Of-

*

*

*

the

The consolidation of the Indus-

Currency reports that the merger
cf the First National Bank of Del-

trial National Bank-Detroit (capital $2,750,000) with the Manufacturers National Bank of Detroit,
Mich,
(capital
$8,000,000)
was
completed as of the close of busi-

aware

the

Comptroller

stock

Provident

Philadelphia,
and title

fective
A

of

County, at Media, Pa. (with

common

of

reference
our

Company

under

the

of

charter

became ef-

ness, Nov. 18.
When the
fices of the enlarged bank

of

for business

latter

the

of

$800,000), with

Trust

of the

as

peared in
In

*

Harrisburg, Pa. Bureau

Philadelphia

Nov<

su-

merger

the

and

^

increase

*

*

Plans to merge the Wayne Title
& Trust Co. of Wayne, Pa. with

die.'

Ambler, SouderHatboro, most did not

seriously
He

life

or

protested

proposal first

far distant

as

its

it will be controlled with

or

#

Fr0m its

the

A

the

National Bank in Birdsboro.

proposed that the capital stock of

single finding of fact to support
pervisory authorities.
From
it." The "Inquirer" continued in
"Inquirer" we also quote:

protested

two branch offices and
the acquisition of the former First

Montgomery

Ac-

opinion held

dend

suits from continued good business at our

Jenkintown office will be lo-

new

were

Jones who wrote the

-

„

Our favorable diviS1tuan added, re-

Comptroller of Cur-

banking facilities in
adequate. Accord¬ the First
Pennsylvania Banking &
ing to the Philadelphia "Inquirer" Trust
Co.
of
Philadelphia,
Pa.
of Nov. 22, Justice Charles Alvin
were announced on Nov. 16.
Ardmore

un.

"Under the terms of the agreerency in Washington, D. C.
It is ment, the assets and liabilities of
added that a lease has already Scranton-Lackawanna
will
be
been negotiated for a store on the taken over for $2,247,500 in cash,
Avenue of Shops.
In making the representing a payment of $155 a
announcement,
Mr.
Semisch share
for the
14,500
common
stated
that while
the proposed shares now outstanding."
made

ago

on

arbitrary

*

the

Jersey

that

the

Lansdovvne,

Society

Philadelphia to establish

:1s

the

consolidation

the

of

heart

A

*

of

proposal

phia

ap¬

stockholders.

*

Justice Jones noted

tional Bank of
Middletown, N. Y.,
which had common stock of
a

branch office of the Second Na-

tional Bank of Philadelphia in the

is

pointed out that the delay in the
payment of a stock dividend is

11

Under

a

of

establishment

the

for

Plans

will, it is noted, be determined by

a

par

new

date

White Plains from

on

approval had been given to
certificate of increase of
capital
stock of the County Trust Co. of

pending approval in the Comp¬
troller's Office and we
expect to
establish

soon

Musmanno. The dissent stated that
the Bryn Mawr Trust Co., one of

announced

that

recommend

to

Board

a

Department

ber of applications for
branches in
fast growing areas of the
County

permission

4% be de¬

subsequent

to

of

in¬

an

strong dissenting opinion was
filed by Justice C. Bell,
Jr., con¬
curred in by Justice Michael A.

substantial

receive

rec¬

1943,C^67# in 12 years*
a gain of
367%^in 12 yeais.

part:

New

000,

Roth added:

"With

Governors

Reserve

000,
the

Currency in placing a
temporary moratorium on bank
will

of

known

$250,-

*

of

the

mergers

of Oct. 28.

as

County Trust took

The

Garden City.

"The action

eral

charter and

made

Great Neck

City
82

Of¬

to

Island

located in

are

East

Main

Vice-Presidency

Stewart
third

latter,

been

Board

The appointment of W. Howard

Lowe,

of the

The

Directors

of

ommends, upon the approval of
this amendment by the stockhold¬

The

Comptroller of the Cur¬

N. Y. under the

011

Jan. 17, approve an amendment to

*

rency Bulletin dated Nov.- 21, it
is announced that the First Na¬

development, providing the Trust
Company with information for its
use in
planning long-range invest¬
policy.

meeting

annual

Co.

Trust

the

of

cash dividend

a

office.

of

part

on

of record and the date of payment

Larchmont, N. Y.
Mamaroneck, N. Y. opera¬

years

directors

the

that

bank had declared

ers

Trust Company's
and

announced

N-. J.

Banking & Insurance, that

Nov. 24

facts. The Bryn
he added cur-

not backed by

is

,

pointed out.

"little bank"

a

of

the

our

is

Mawr

thereafter

Carl C.

Bauer, of

George W.

15- The mid-year dividend pay,
merit was 70 cents. Dividends
during the current year total 20
cents more than the previous high
recorded in 1954, Mr. Heckman

Bryn

the Union County Trust Company

mergers

bank

*

ice

President

the

that

inference

Bell's

1955

he said, voted a year-end dividend of 80 cents plus an extra
dividend of 50 cents payable Jan.
3 to shareholders of r^cord Dec.

^,

Mawr Trust Co.

existing

in

During the latter

;

be

Currency of fur¬
by two banks
Nassau
County and Suffolk
County, Long Island, N. Y., ap¬

ther

to Britain during two world wars.

•_

be

2199.

the United States Trust
New

to

bearing on the pro¬
barring by U. S. Comp¬

posed

appointed scientific Consultant to
of

"are

where branch applica¬

Sir Hugh Stott Taylor has been

statement

build¬

bank

said

item

peared in
*

New

expected
are

Stockton

Franklin

Plainedge, New Cassel
and Herricks Road, Mineola.
In
addition, a number of new offices

An

Vice-President

is

at

tions

of

the

at

further

S.

election

at

it

and
a
large addition to its
Farmingdale Office, as well as

Aldrich, President, announced the

Hulbert

that

tre

areas

of the Board and

building

and

1768.

page

erection of

starting the erection of a new
bank building in Rockville Cen¬

those

man

office

and

Roosevelt

ings"

meeting

a

Mr. Roth added that the "Frank¬

Square Office.

$

5;?

growth, while only 30% has

been the result of consolidations."

was

the

with

accord

in

are

Court's minority

Thursday, December 1,

.

end

October,

to
the
merger
apissue of Nov. 3, page

1882.

Dividend

*

*

payments

nounced

President.

by

Pa.

of

have

John

D.

The board

33 or-

opened

21, they op-

ter of the Manufacturers

charNational

enlarged

erated under the name and
of

Detroit.

The

Manufacturers National has capi-

$2

per

share by City Bank & Trust Co. of

Reading,

Nov.

Bank

-

*

on

been

an-

Heckman,
of directors,

tal, surplus and undivided profits
of more than $38,000,000 and total

$750,000,announced
that if final consolidation was ieresources

000.

in

excess

On Nov. 17 it

of

was

Number 5486

182

Volume

.

.

.

The Commercial and
Financial Chronicle

23

(2327)
|r

Reived, Charles A. Kanter, Chair¬
Manufacturers

of

man

f

Union Trust Co.

National

I

'

A

'

.

His election be¬

effective Dec. 1. Mr. Logan
joined Marsh & McLennan in 1943
comes

;Bank, would recommend to the
.directors at its meeting Nov. 18

as

jthat a dividend of 13 % cents per
share be declared for the month
'of October on the 800,000 shares
of outstanding stock of record on

authorities
of

Bank

manager of the life and pension
in
St., Louis,
and

thereto

chusetts

Mutual

Co. from

with

was

Life

Massa¬

the

on

Insurance

then

outstanding

for

assets of

of

Sept.

capital

*

Denver,

increased

of

as

Nov.

from

Cashier
Bank

columns

Sept. 29,
Oct. 27, page 1768.
•

the

proposed

in

appeared

*

these

1317 and

page

The

.

of

as

*

First

Lewiston,

National

Mont,

$26,600,000 by

of

$2,681,610.

stock dividend

a

The

merger was re¬

ferred to in these columns Oct. 27,

T>age 1768.
The banks merged
with the National Bank of Detroit
the Rochester National Bank

were

of Rochester, Mich., the Utica Na¬
tional

Bank

of

Utica,

Mich,

and

ithe Grosse Pointe Bank of Grosse

Pointe, Minn. The weekly Bulletin
jNov. 4 of the Treasury Depart¬
in

ment

referring to the consoli¬

dation,

pointed out that in its
previous notice Sept. 20 the com¬
mon

stock of the National Bank of

Detroit

should

have

been

given

■as
$22,500,000 instead of $22,831,;250.
The capital stock
of the
"

merged bank, it is added, was
rectly given as $23,318,390.
*

H-*

cor¬

to

to

with,

merge

consolidation
soon

as

the

approve

in

transaction.

National

1921.

has

It

consolidation is
bank's
will

single

First

in

Western's

of

This

seniority.

As of Nov. 7 the Fourth North¬

western National Bank of Minne¬

apolis, Minn, increased its capital
$200,000

to -$250,000

by

a

"stock dividend of $50,000. A sim¬
ilar increase of $50,000 represent¬

ing

also

stock

a

made to the
at

which

$150,000

Reference
these

to

dend

$200,000.

28,

*

in

382.

age

*

result of

a

capital

appeared

July

*

as

to

this

columns

Both

bank's

a

$150,000, and the sale of
$100,000 of new stock, the Na¬
of Commerce

of Lin¬

coln, Neb. increased its capital
.of

Oct.

31

from

as

$1,000,000 to $1,-

,250,000.
The

Trust

F.

*

First

L.

*

Bank

of

Tulsa,

Nov. 9 that

on

Dunn

&

Okla.

on

Dec.

retire

would

as

^Chairman of the Board, but will
continue

as

Elmo

director.

a

McClintock,
come
•

their

be

10

President,

Chairman

of

the

R.

Otis

will be¬
Board; R.

Thompson, Executive Vice-

referred to in

our

ently

consolidated bank will be is¬
for

share

each

of

directors of both banks have

P.

now

outstanding.

The
met

informally and have approved the

that

the

institution will

Sansome Street in San

«

a

Union Trust Company of St. Louis,
Mo., it was announced on Nov. 17

by David R.
Mr.

Calhoun, President.

Vice-President
charge of the St. Louis office
of Marsh &
McLennan, Inc., a na¬
tionwide firm of pension actuar•ies and insurance brokers, from
April 1952 until his election as
Vice-President of the St. Louis
Logan

was

in

•




Francisco.

*

*

*

*

Vice-President of the St. Louis

Howard Bronstein,

in

San

of K. M.
Manager*

General

and

Manager,

retiring after 44 years of
service with the bank. Mr. Atkin¬
is

who

continue

will

son

wick

provides that

earnings and profits, exclusive of
and losses, of all
in the current year in

gains

since

the bank's
Mr. Sedge¬

of the banking institu¬
1949, and for the past

the Chief Administra¬
tive
Officer in Toronto
of the
bank's affairs in Ontario. He will
assume his new duties on Dec.
6,
when Mr. Atkinson's retirement

four years

becomes

of the moving

four

own

subject

to

averages

shall

years,

graduated

a

additional
apparent

This would entail simply adding
the figure for his last year's earnhigs and dropping that of his first
year's earnings.

individual

with

be

annual

an

,

.

Sincerely yours,
J. HENRY LANDMAN" Y

of

rate

tax

The
implementation
of
the
averaging-incentive tax plan is
a very simple process. Every tax¬
payer on
his tax return would
provide his earned income for his
previous four year base period.

Broad

50

New

An

an

The

22%.

York

Nov. 23,

Street,
4, N. Y.

1955.

taxable income of $18,000 reaches
the

it

50%

launch

uoon

a

income

to

induce

tax

him

business

new

of

the

rates

to

because

ture

Psychologically

bracket.

difficult

is

Benjamin Jacobson Admit

to

ven-

progressive
91%.

How-

Benjamin Jacobson, Jr. on Dec,
wm be admitted to partner-

1

ever,

ship in Benjamin Jacobson & Co.,
61
Broadway, New York
City,

tax

members

if it is assured of graduated
r^te reduction on his earnings
and profits in the,current year .on

the

four

he would
be tempted to engage in the new
business enterprise for the eco¬
nomic
welfare
of
society,
the
Government's revenue and himown

years,

With Calif Investors
(Special to The Financial Chronicle)

ome

with

If the new venture

to

of

rate

Joins Pac. Coast Sees.

might offer him a
60% instead under this
We

of 65% inattained an
annual income of $80,000, and a
rate
of 70% instead of 75% if
a

His

(Special to The Financial Chronicle)'

LOS

rate

if

he

c.

ANGELES, CALIF.—Peter

with

f

r

would

now

Coast

Pacific

San

was
formerly
the Tegeler & Co.

actual earnings in the curyear

is

Olmstead

associated
Securities

FranciSco

He

Company 01 ban rrancisco. no

reached $60,000.

rent

3924

Investors,

$100,000, he would be in

circumstance,
stead of 81%

he

California

wilshire Boulevard,

ag¬

extraordinarily high tax rate
87%.

of

yielded him

income

earned

•

ANGELES, CALIF.—JerRobbins has b4come affiliated

LOS

self.

additional

—

*

of his earnings average

excess

his

of

the New York Stock

of

Exchange.

become

with

Dempsey-

Assistant General

been

has

Manager
tion

on

Directors.

of

Board

The

Comptroller of the State of New York
agent of New York State Thruway Authority

as

will sell at his office at

Albany, New York on

10:30 o'clock A. M.

December 7,1955, at

effective.

$50,000,000

H. Cross, Presi¬
National Bank
Leandro, and Elliott Mc¬
the

First

of

of

approval

the

and

by

merger

will

the

Chronicle)

James

—

joined

has

the

W.

Company, Inc., 408

Slayton &

State Guaranteed

Authority

Thruway Bonds

(Fourth Issue)

staff

Principal and interest

unconditionally guaranteed by

the State of New

Olive Street.

Dated January

Joins Hope

be

are being
subject to

supervisory

Staff

(Special to The Financial

S.

is

Chronicle)

York

&

Co.,

41$ Laurel

members of the Los An¬

Street,

geles Stock Exchange.

E.

F.

Hutton Adds

(Special to The Financial Chronicle)

LOS

ANGELES, Calif.—Evelyn

G. Phillips
E.

F.

South

has joined the staff of

Hutton

and

Company,

Spring Street.

623

serially in various amounts from

inclusive.

.

the Authority, prior to
their respective maturities, as a whole or in part at any time on and
after October 1, 1963, upon certain terms and conditions, including
specified redemption prices.
Principal and semi-annual interest, January 1 and July 1, payable
at The Chase Manhattan Bank, New York City.
Copies of the Act and Resolution authorizing the Bonds, Official
Statement, Official Form of Proposal, Notice of Sale, and forni of
opinion of Attorney General will be furnished upon application to The
Chase Manhattan Bank, Fiscal Agent, 11 Broad Street, New York,
The Bonds will be

connected with

now

Hope

1, 1956, and due

1985 to 1995, both

DIEGO, Calif.—Alfred W.

SAN

Klieforth

Francisco,

jointly announced on Nov. 22 that
an
agreement has been reached
for the merger of the two banks.
resolved

Mo.

LOUIS,

ST.

Armstrong

The Bank

Allister, President of
of
California, of San

Details

New York State Thruway

Staff

Joins Slayton
(Special to The Financial
'

Chairman of

the Board, and R.

of

an¬

H. Atkinson, Vice-

T.

President

E.

dent

General

Canada

has

Montreal)

as

succeed

to

Anglo National Bank and that the
head office will be located at One

Hugh A. Logan has been elected

.

Sedgewick

name of the
be Crocker-

Byrd, Jr., Senior Vice-Presi¬
dent, will be given the added title
to the Chairman.

averaging-in-

centive tax program

their

of

rate

It has been

in principle.

proposed
new

of

Bank

office

Crocker

of Assistant

•

The

enterprisers.

gregate

*

nounced the appointment

outstanding and that three
shares of stock in

Bank stock

ecutive Vice-President and a mem¬
ber of the Board of Directors; J.

*

Royal

(head

six-tenths

merger

of

7.

Dec.

The

Nov.

J. Henry Landman

business

excess

sug¬

Anglo Bank stock pres¬

Executive

President, will become Ex¬

actors,
lawyers and

the

Stockholders

of the Board and Chairman of the

Committee; Russell F.
Hunt, Vice-President and Assistant

shareholders

to

*

stock

of

sued

28

Dec.

record

revealed

share

the

cents

directors, meeting in Los Angeles.
extra dividend will be pay¬

provides that two shares of $10
par
value stock in the consoli¬
dated bank will be issued for each

E. F. Allen, Executive Vice-Presi¬
dent, will become Vice-Chairman

to the

ap¬

ing $10 par value. The exchange
proposal, which is subject to ap¬
proval by stockholders as well as
the Comptroller of the Currency,

and

15

of

Bank of America's
(San Francisco) common stock
was
declared on Nov. 15 by the

California National

issue, page 1984.

Man¬

share on

per

contemplated in the consolidation
of
the
two
banks, plans as to
were

dividend

Am extra

Crocker

the basis for the exchange of

which

Assistant

will make
headquarters at
the Paris
Branch, Mr. Smith said.

the

to

Francisco,

San

of

the

of America iq Europe,

cisco, and Paul E. Hoover, Presi¬
Bank

of

his

of San Fran¬

First National Bank

has

Manager

The

branch.

respective

of the Board of the

man

Szasz

Alexander

and Operations Officer is C.
E.
Sfeiger. Nelson W. Monfort,
Vice-President representing Bank

institutions, W. W. Crocker, Chair¬

President, will become President;
,

of

those

capital

this

reached.

of

The

forwarded

letters

opened by the bank's

appointed

able
In

military facility

ager

proval is anticipated.

stockholders

A second

Evreux,

overseas

new

of

both

that

in December and

early

in

Base

are

cut.

been

the merger

on

It is located at the

Force

countries.

being advised that the consol¬
idated bank will issue shares hav¬

National

Company

^announced
1.

vote

first

to

appurtenance

an

However^,

jumping-off rate of 52% for cor¬
porations is attained when their
taxable incomes
of $25,001
are

and

as

treatment.

tax

receive

should

Corporations

similar

uniform

such

vpar

n

tax

annual

sporadic
not

he would be offered a
tax incentive every subse-

$25,000 is subject to

a

earnings

taxpayers

stated

of

bank's

subsidiary and extends
organization of the
California
bank
to
16
foreign

are
*

r

would

dent of Anglo

stock divi¬

of

tional Bank

announcement

stockholders

the

,

banks

was

capital in June last,

time the

from

rose

dividend

The

meda.

that

at the
headquar¬

the date for the open¬

the

Air

S.

the

inde¬

will

banking,

whose

New York

banking system, and its
personnel will be retained without
loss

new

m,ent

porate taxable income is subject
to
a
30%
rate, and that over

It

works

be the third

pendent

*

to

American

enterprises.

new

gestion, corporate tax rates should
be
made
progressive to a- 52%
maximum.
At present,
all cor¬

a

deterrent

in December at the
TT. S. Air Force Base in Dreux,
France.
The Paris Branch, at 9
Boulevard de la Madeleine, will

Alameda

statewide

its

open

will be opened

an¬

part

will

Francisco

was

France.

When the

integral

an

as

year of his average base
period for the next year. Conse-

as

Is

u a

hardship
on
taxpayers

San

of

U.

consummated the

office

become

d ivd

n

behaves

also

Armed Forces.

will

is

for

subsidiary

military
facility in Europe to serve U. S.

Com¬

it

assets,

nounced, of $1,643,000.

i

91%

San Fran¬

international

ing

established

was

(Interna¬

ters. It has also been disclosed that

holders and regulatory authorities
mercial

to

prevailing income tax rates.
fourth

quently,

,

Our Federal progressive income
tax rate system varying from 20%

to

Branch

Nov. 21

the

stock¬

as

,

Gi>?n

owned

Calif,

bank's

Western, and J. L. DePresident of Commercial
The

,

.

_

*

on
Dec. 1, it is an¬
by Russell G. Smith, Ex¬
ecutive Vice-President in charge

First

become effective

be¬

nounced

Calif, has been approved
by the directors of both banks, it
was
announced on Nov. 16 by T.
P. Coats, Chairman of the Board

National.

will

PormU

A v#>r i f>-inp- w nr
Averagmg-Incentive ^
Tax Plan.my

of America of

Paris

ameda,

lanoy,

National

America

cf

cisco,

Commercial National Bank of Al¬

of

and

and Financial

Chronicle:

San

Manager of the

*

of Bank

Company of San Fran¬

Calif,

the

of

First

and

tional), wholly

The offer of First Western Bank

cisco,

Editor, Commercial

Leandro

Leandro,

of

First Western's first office in Ala¬

from

San

its

of

and Trust

San

First

under

as

business

three Michigan banks into the Na¬

ito

in

the

:;t

$100,000.

•Mich, that bank increased its cap¬
ital as of Nov. 4 from $23,318,390

deterrent to incentive

San Leandro Office.

Following the recent merger of
tional Bank of Detroit, at Detroit,

in

the

Vice-President

of California

stock dividend of

a

of

Henry Landman, New York Tax Attorney, writes "Chronicle"
a
plan of tax reform which would not be a substantial

of

Vice-President of The Bank

come

$200,000
4, the increase having

Oct.

resulted from

*

Bank

increased

capital from $100,000

J.

on

$517,000,-

over

members

of

Bank

regarding

Tax Plan Advocated

$6,000,000,

Advisory Board of The
California. A. J. Oliveira,

Executive"

December.

consolidation

steady

$468,000,000

were

THE EDITOR:

Averaging-Incentive

is

and

a

California

directors

become

Bank of

jpa.ying dates of the two consoli$2,200,000 to $3,300,000. The addi¬
j dated banks be the same. It is tion of
$1,100,000 to the capital
anticipated that' quarterly divi¬ was
brought about by a stock div¬
dends of 40 cents per share will idend of
$550,000, and the sale of
be continued next year payable
$550,000 cf new stock.
in March, June, September and

cf

TO

or¬

$13,000,000. Deposits

Bank

Leandro

Colo.

4

1928

of

resources

The

will

*

The capital of the United States
National Bank of
was

loans

1955

National

"

added in order that the dividend

Items

30,

000.

$200,000 stock dividend.
*

of

LETTER

National
was

enjoyed

Bank

and total

a

June

over

The

sult cf

the

payable in December. This
procedure is necessary it was

have

$200,000 to $400,000, the addition having occurred as a re-

.months of November and Decem¬
ber,

in

to

stockholders

First

Leandro

capital funds of $963,000, and total

„

shares

San

$12,000,000,

from

1,075,000

the

and consistent growth.
Figures for
Oct. 5, disclose deposits of* over

1934.

its

cents per share be declared
December

in

in

said

"'that date, payable in December.
*
:!:
*
"After the consolidation
became
Effective Oct. 31 the Citizens &
effective, it was added it was Peoples
National Rank of Pensacontemplated that a dividend of cola, Florida raised
.26%

and

banks.

ganized

departments
prior

both

subject to redemption by

New York.

,

ARTHUR LEVITT, State
Dated: November 30,

1955.

Comptroller, Albany 1, N. Y.

24

Public

Utility Securities

San Diego Gas

of New York, holds recent
indicate a severe decline
along that line are due
to preconceived notions rather than economic realities.
Cites
dangers in governmental program of
adequate housing.

Revenues of almost $41

City of San Diego, Calif,

million

about 65% from electric service and 35%

derived

year are

a

Resi¬

from natural gas.

dential and rural power sales provide some 47%

of electric rev¬

while industry contributes only about 19%, an unusually

low ratio.
The company's service area includes
citrus

and

fruits

the

principal products;

with its important aviation

the City of San Diego
manufacturing plants; and

and other

the large permanent U. S. naval base.

the

has also been

area

farm section with grains

a

a

Because of its fine climate,

for tourists and retired business¬

mecca

men.

San

its

Diego County produces

7,000

farms

and

wide variety of

very

a

ranches—grapes,

on

alfalfa,
industries located in the City of
San Diego—Convair, Rohr, Ryan and Solar—have large defense
contracts and contribute about 4% of the company's revenues.
With the recent opening of the Kearny Mesa Industrial Tract, a
municipal program to attract diversified light industry to the area
has gotten under way. Two leading electronics manufacturers (in
and cotton.

vegetables,

crops

fruits,

The major aircraft

addition to the 18

now

located in San

Diego County) have started
plant construction, and it is expected that the area may become
one of the major electronics centers of the United States.
Other
light industries, such as fibre glass and metal prefabricated prod¬
ucts, furniture, etc., have been entering the area.
Because

fine

its

of

harbor, San Diego has the largest naval

installation in the country, in which nearly a half billion dollars
■has been invested.
The company's sales of electricity and gas
to the armed services contribute nearly 9% of its revenues.
The company's growth has been rapid, revenues increasing

136% in the post-war period.
electric

revenues

gained 8%

In the 12 months ended June, 1955
and

10%

gas

the previous

over

12

months. San Diego County's population, less than 300,000 in 1940, is
estimated at over 800,000 now and is expected to pass the million
mark in

1960.

gains in Southern California.

study of popula¬

post-war population

in¬

of

2,625,000 was ascribed 30% to natural growth and 70%
immigration. The telephone company forecasts a gain of

crease

to

The

net

2,935,000

the next decade, of which 43%

over

increase and

natural

San

57%

net

to

be

would

due

to

immigration.

ing units
at

nearly

compared
less

than

ber,

1954.

re¬

as

66,000 kw. units

installed

second
1956.
need

unit at

Encina

is

in

1948,

Encina

at

scheduled

1950

in

for

and

October

1952, and
last

of

purchasing

restricting the

obsolete

of

use

from

power

other

utilities

plants to peak

but

will

operating periods.

The company expects to spend some $18 million in 1955 and about
the

same

Pro

amount in

forma

capitalization

of

as

million first mortgage bonds

Aug.

31,

1955

(including

being sold currently) is

as

Millions

Percent

$73

47%

Long-term Debt
Preferred

Stock

20

Common Stock Equity

(4,000,000 shs.)

ing

in

is

The

prospect of

the

tion.

total

The

in August received

share.

a

increase

for the calendar

1955.

year

but

other hand the company will
probably have to absorb
in

the

wholesale

expenses,

so

that

cost

of

earnings

If the company makes full

financing

may

and

gas

perhaps

are' estimated

use

tion,

1956

as

share earnings makes

the

recent

1956 estimate

14.
of

Based

4.9%, and

final decision

on

estimated
is

16.4;

1955

and

average

the recent

P-E

ratio

of

industry

earn¬

on

the

average

yield

15.2.

common

1954

——

Earnings

Price

Bk. Val.

dicated
vate

steps

that

be

to

have

struction.

24.75

1.19

0.80

14M2-13

The

present.

been

taken

Without

new

to

con-

such

some

that

seem

the

demand-supply

equilibrium would have had to be
maintained

by an even sharper
in costs, with all the future

rise

deflationary threats that
would

the

rise

have implied.
.

,

Preconceived
"Considerations

XT

x•

Notions
of

kind

tion is centered

that fewer new
t

ing started.

on

single fact
dwellings are be-

There

to determine

no

attempt

in

conditions,

the
may

der.

no

There

is

whether, in view of

all the attendant

moderation

the

is

tempo

as

some

of

not be in

interest

the

ciple

is

extended

to

should

branches
fect—in

of

so

ceeds—is

robots

be

of

to

produce

whose

real

a

actions

nation of
the re¬

are

independent choice

economic

the decisions

masters.

other

consumption, the ef¬
as the
attempt suc¬

far

sult of neither
nor

into

This is

advantage, but

of

their political

the

logical

program

ultimate and

implication

mental

of

a

of

govern¬

'adequate'

housing."

Tabell to Address

Women Shareholders
Edmund
ston

Tabell,

Co.

&

"Current
nances"

partner, Wal-

will

the

open

Events

and

Luncheon

first

Your

Fi¬

Course, Satur¬

day, Dec. 3, at

of

home

buyers

and

builders are strongly encouraged
to conform, and to which taxpayers are,
of course, compelled to
conform. The individual decisions
of supposedly free citizens are in¬
fluenced by manipulation of interest rates, terms of payment,
even

expenditures of the tax-

24

West

55th

Street,

New

York

City,

of

Women

Shareholders
in

American

Business,

Inc.
keep

to

and

women

their

families

up-to-date

on

investing. Mr.
Tabell

credited

Edmund W. Tabell

is

with

forecasting the long bull market.
Patrick De Turo, department of
banking and finance of New York
University, will be Guest Con¬
ductor for the

Wilma

course.

Soss,

President

FOWSAB will be
Robert
the
will

S.

New
be

Byfield,

York

may

be

much of their money

sumed

to

their

money

for

Any decline in

undesirablelm

be undesirable

some-

resi-

member of
Exchange

Stock

guest

speaker

follows, of course,
anything the government or

1.13

0.80

13%-121/2

13.55

that

0.80

14%-12%

13.24

19.72

0.81

0.80

171/4-13%

13.00

18.11

0.92

0.80

17%-15i/4

11.83

the cential banking authorities
do
to weaken*
existing incentives to
residential
construction
is
also

17.46

0.91

out

of

at

the

Gives

Achievemenl Award

•

c,,

.

,

Standards

NEWARK, N. J.—A firm manu¬
one Questions the desirabil- facturing coasters, organized and
adequate' housing — safe, operated at a profit by Essex
sanitary, comfortable, and reason- County teenagers, has won the
ably spacious housing. The more 1955 Richard E. Kohn & Company
people who can enjoy such hous- Award for the excellence of its
anc* the higher degree in report to stockholders. This was
which they can enjoy it, the bet- announced by Richard Kohn, sen¬
ter- But, in the final analysis, ior partner of Richard E. Kohn &
these housing standards are mat- Co., Newark stock brokerage firm,
ters °f degree. There is no divid- which gives the placque yearly to
i.nS line between 'adequate' and the Essex County Junior Achieve¬
ment company producing the best
'inadequate' housing,
•
"Furthermore, housing is only annual report.
The 1955 winner, operated un¬
one of the many necessities and
.

.

for

which people spend
How much is to be
spent for housing and how much

Junior
Achievement
groups in the county which sub¬

for

mitted

their money.
other

things

individual

people do not
and

more

is

choice.

better

and

better

host

of

a

matter

of

How

many
desire better food

clothing,

amusements,

more

and

a

other

things, as well as
better housing? All these
things
cost money; and more
spent for housing means
available for the
many
at-

course,

less

tractive alternatives,
"The
auate'

onlv

definition

hourin*

vS|
is

that

that

in

a

der

the

of

thirty

name

of

Janco,

Hence, both in and
Congress, 'tight money' in

hi iv
economy"

free

^

antitv

m

pay for at free"

cost, in view of

the other possible ways of spending their money. It is as unrealas

ernment

to

to

enforce

housing
a

as

similar

uneconomic for

establish and

one

its report. Because Junior
Achievement companies are or¬

ganized, operated and managed by

teenagers

who

acquainting

are

themselves with the way in
American

through
gram,

business
a

must

which

conducted

is

learn-by-doing

reports

by them, under

be

pro¬

prepared
of the

the rules

A

committee of judges,

a

gov-

in the Certified Public

&

of

Peat,

of

it would be to pursue
course
with respect to

Accounting

Marwick,

Mitchell

Company, Adolph A. Johnson,

Vice-President

Company,
Financial

of

and

Federal

Trust

C.

Ellis,

Robert

Editor

of

attempt

arbitrary standards

includ¬

ing Marshall M. Thomas, Partner
firm

istic and

was

contest.

nf

housing

3S" wiU!ng t0 buy and
market levels of

From this it

undesirable.

n.

of

housing as they should be, or
that, comparative costs being considered they may prefer to
spend
of

of

Moderator.

money

0.84




bases

prospective

or-

21.93

10.95

the

government
policies and programs to which

the

in

23.39

19%-16%

become

comforts

this

bring no apparent comfort to the
housing enthusiasts, whose atten-

13.92

0.80

posing official documents, tend to
be accepted at face value.
Th e y

commercial

dampening influence, it would

thing else.

1950

—

pri-

support

building field

temper the demand for

more

14.33

___

to

certainly tends to confirm

15.00

14V8-12%

1946

Most

year.

tend

drawing

continue

$15.00

15.09

is

predictions prove sub-

and

-14 Mi

15%-13%

standpoint,

Payers' money, all in the name of January luncheon.
stanially correct, the construction official 'targets.' Any real freeindustry will continue to operate ^om ?f choice in the light of comat or close to its physical
capacity, parative
costs
and
alternative
R. E. Kohn Go.
The intense demand that has been channels of expenditure tends to
pushing construction
costs
upbe suppressed,

16%-13V4

19

Unfortunately, such vicarious
judgments, when published in im-

and

such

0.80
0.80

1945

forecasts

$0.80

0.80

—

this

this view.

1.16
1.52

1947

for

$1.06

1.13

_

peak at $44 bil-

new

for

Range

33.31

___

a

more

lion, 5% above the $42 billion in-

spending

Common Stock Record

Dividends

28.83

1948

reach

may

themselves.

Depart-

the 1955 total Oi

near

housing boom
stock is indicated

1951

.

the

the value of private nonfarm residential construction in 1956 will

36.19

1952

1949

Altogether,

$38.59
...

construe-

^ incapable of resolving for

is expected to in-

possibility that the people

Revenues

(Mill.)

number

appears

share

based

construe-

the

of Commerce estimates that

The estimate

following table:

Year

1953

$1.30-$1.35.

with the dividend rate of

The past record with
respect to the
in the

increased

discussed above, the P-E ratio would
approximate

These ratios compare with
about

increase

year.

18 %,

the price-earnings ratio
as

the

allowance, it is understood, for

no

price around

800, the stock yields 4.3%.
ings of $1.13

on

credit, permanent

yet regarding this program.

possible equity financing late in that
At

no

of

in

Nonresidential

moreover,

~

have been made

of

around

of available bank

be avoided in 1956, but

to

at

an

other

some

are

Next year

effects of the rate increase will be
enjoyed,

volume

decline

paternalistic government to re-

s°lve> ^ behalf of the people, a
Personal question which the peo£le ?re apparently presumed to

serious decrease

a

the wisdom of the very moderate

equivalent

a

on

housing starts seems to have
been accompanied by a tendency
toward
somewhat
larger family

will

100%

Allowing for this factor, share earnings

estimated at around $1.13

the full

rate

a

based

of

outlook

company

criticism

the

bank funds into the

40

$154

lie official or board appointed by

purposes.

"Nor

ward

13

61

Totals

to about 490

$18

follows:

ma,

limI

launched by
the Federation

"If

1956 for construction work.

economic

ideas arrived at by some pub-

remain

permit

effect

the

or

than $16 billion and that expenditures for construction of all kinds

completion in the fall of

into

the

are

housing market
expenditure which, from
the

commercial bank credit for build-

one

Progress with this large plant will not only eliminate the

the'

If

Patio Bruno

The

year.

line?

housing,

They express someone's idea of
the sort of living quarters the
people ought to have. In practice, they usually express the idea

crease.

106,000 kw. unit installed

to

Building costs have
been rising steadily. The same is
true of mortgage debt, and
increasing use has been made of

ment

four

the

made elsewhere. If the same
prin¬

housing,

'substandard'

as

'decent' housing, 'adequate hous¬
ing, or housing 'needs.' What do
such words really mean? Obviously, they are purely subjective,

operations.

quirements in three steam plants. Of the total capability of 460,000

1943, while the remainder consisted of

concept

whole has been tax-

a

why

to

ing, if not overtaxing, both its
physical capacity and the amount
of savings available to finance its

kw. at the end of 1954, about one-third represented units installed
in pre-war periods and in

than economic

hous-

dications that the construction in-

dustry

down

divert

realities. It tends
ignore everything except the
started is still running subject in hand, a habit that is
IM4 million a year, as fatal to straight reasoning on ecowith the peak rate of nomic matters,
IV2 million in Decern"Applied to housing, this mode
There have been in- of thought starts from some such

number of private nonfarm

in,

him what

on

some

I'This attitude reflects a type of
thinking that has become quite

such decline has occurred. The

no

units.

Diego Gas & Electric generates most of its electric

residential

live

tell

food
eat, what clothes to wear,
and

ited

prevalent in recent years. It can
a severe debe described as thinking in terms
building, for of preconceived
notions rather

not stem from

cline'in

any

Pacific Telephone & Telegraph has made a
tion

"does

of

should
not

nipulations and subsidies

Guaranty Survey," the monthly
publication of the Guaranty Trust
Company of New York, in an
editorial
article
severely
con-

ing facilities.
"This feeling
of anxiety and
disapproval"
the
article
states,

it

so

"The

of

issue

December

1955

to

general and VA, FHA and home
loan bank policies ^Particular
are under attack. A Senate subcommittee is investigating
whether these policies are pr demns the fear that the recent venting a level of building activrestrictions relating to mortgage ity high enough to meet the n
credit will impede adequate hous- tion's housing needs,
The

he

should

tightening of mortgage credit does not
in residential building, and that fears

& Electric Company

San Diego Gas & Electric serves the
and environs.

house

Guaranty Trust Company

tion of the

By OWEN ELY

Thursday, December 1,

.

other type of personal
con
sumption expenditure. If the
state
tells the individual what
sort

Survey," monthly publica¬

Editorial article in "The Guaranty

,.

any

"Adequate" Housing

The Real Test of

enues,

Commercial and Financial Chronicle

The

(2328)

News,
their

evaluated

the

the

Newark

reports on

clarity of presentation, com¬

pleteness and general appearance.

Number 5486

182

Volume

.

.

.

The Commercial

and Financial Chronicle

(2329)

IETTER TO THE EDITOR:

aboo"—in which he
on

to

important

Mr. Shnll Takes Issue With

our

then
in

Attacks views stated by spokesman for National Association of
Manufacturers in reply to criticism of Association's attitude

Editor, Commercial and Financial
Chronicle:
the

of

One

cisms

'.'

I shall,

vrnf

Frederick G. Shull

stand

"courageously

in

favor

of

not

proceeds to challenge Dr. Walter
Spahr's pamphlet in which he,
Executive

the

Vice-President

"Economists'

National

of

Com¬

Monetary Policy," takes
issue
with
views
held
by the
NAM.
My first "amazement" is
on

occasioned

by

.

Mr.

"vicious."

ref¬
as

dictionary

"Addicted to

as:

immorality;

or

F.'s

criticism

Webster's

defines "vicious"
vice

de

to Dr. Spahr's

erence

depraved;

wicked."
which is pretty harsh
language to use against this dis¬
tinguished
Professor
of
Eco¬
—

nomics.

fore,

My first comment, there¬
is that an apology would

seem

to

Mr.

be in

de

F.

order.

does

de

grant that the

the

of

monetary

issues before the country."

That,

is just want Dr. Spahr,
70

associated

econo¬

F.

de

questions

standards." But if
outstanding economists, from
Coast, lend their names

monetary

Coast to

association

is

the

which

for

Dr.

that
would seem to be a degree of
"unanimity" worthy of being ac¬
cepted by the rest of us. There¬
fore, it is difficult to understand
mouthpiece,

how Mr. de F. can, in all con¬
science, say that "there is no
unanimity of opinion among spe¬

cialists

in

the

field

of

monetary

standards."
The late John Maynard Keynes

stands the principles

of money";

but that does not prove that the
average person could not "under¬
stand" those principles, with com¬

paratively little effort. The NAM,

therefore, is quite right in feel¬
ing that "there

are

certain funda¬

mentals that the American people

fully

grasping."

of

capable

And they would be perfectly right
if

they

were

money"

as

Mr.

de

include

to

one

mentals."

clear

of

those

"sound
"funda¬

/

F.

says:

"It should be

that

cerned

nobody is more con¬
about the stability of the

foliar than the manufacturers."
That
being

the

thing

that

don't
plump for the

case,

the manufacturers
°ne

can

why

do

more

to

Promote

contend

paper-money

de

that
pro¬

then

resorts

to

the

for

the

market-gam¬
That is

of
the

it

as

Gold

would

Standard

every
untoward
happening
since the founding of this nation;
for a gold-backed Dollar was es¬

tablished

as

far back

1792, and,

as

—

installed

for

the

express

of preventing a collapse
in this country," there
good reason to believe that

purpose
of

credit

is

other worthwhile




gold,

And

we

Once

were

again

we

eventual

yet,

200

gold

million

and—so

that

to

had

both

an

of

know—up
never

in

currency
back where

only

troy

far

time

as

I

had

we

larger supply of gold.
had managed to meet

a

we

"domestic"

convertibility,

and

welshing

of

should

cern

be

this:

Would

our

United

States

Standard?

under

The

cided Yes—if

the

we

are

Gold

is

answer

de¬

a

to

rely, not
only on Prof. Kemmerer's opin¬
ion, but also the opinion of these
other outstanding Americans: Al¬
exander Hamilton; Daniel Web¬
ster; John Sherman; Andrew D.

ible currency.
want to hoard

ing gold
know
lars

are

good

as

To

Why, people don't
non-interest-bear¬

they merely want to
interest-bearing-dol¬

—

that
to

be

maintained

"as

gold" by our government.
this a little farther

pursue

—the

total

bank

deposits of this
nation are on the order of $200
billion; but, even with our "over¬
issued" currency,
there is only

White; Henry Cabot Lodge (the
elder); Andrew Carnegie; Andrew $30 billion of such
printing-press
W. Mellon; and the 70 economists
paper in circulation. Under those

who

compose the ENCOMP.
Mr. de F. seems greatly con¬
cerned lest we experience some

for

"deflation"; but there

fidence

millions

are

of Americans who would welcome
some

"deflation,"

after

"inflation"

perienced

since

ever

bauchery" of

the

con¬

have

we

ex¬

the

conditions, are the banks likely
to be short of dollars? Not at all!;
long

as

sound

'unsound'

is

is

No

redeemable

about

Business

'dis¬

and

nothing

dishonest

or

And

Dr.

took

Spahr

1933.

corroborate

Notes

in

able

the

gold,

held

the

that

of

in

quality
destroyed by

1933.

those

and

that

It

earlier

seems

mone¬

entirely una¬
theory that
paper-money
is
means
of
promoting

experts

tary

was

Deal

New

evident

redeem¬

demand;

on

until

true

Dollar

be

to

were

this

were

modern

"irredeemable"

best

"stability of the supply of money."
Their apparent aim was to

make

Company indicated
no

might

the

level

these words of wisdom:

that there is

the present high
activity in the
quarter, say Purchasing

change

statesman ever to
fourth
the Congress of the United

greatest

of

business

Executives in their November

re¬

ports. This is supported by the
93 % who see their production as
the

same

month.

than

better

or

On

new

authority do I make that state¬
Why, on the "authority"

F.

information
"lessons

those

as

of

greatest monetary

of this

expect alleged by him (de F.)
—

Professor

late

the

Twentieth Century

the

of

come

where

Edwin

W.

the

Kem-

found.

facts

The

are

to just
history"

are

to be
the

that

United States, with minor excep¬

A

definite indication of

more

reached

being

plateau

price

a

who reported prices up, down 19%

from October. The reports showed
of ,Princeton University. tions, operated with a "redeem¬ 42%
listing prices the same as a
bools, "Gold and the Gold able currency" from 1792 to 1933 month
ago,
a
significant jump
Standard" (page 123), Prof. Kem- —without doing too badly as a na¬
from last month's 24%.
The 5%

his

merer

says:

Roosevelt,
immediately
election, joined Presi¬
dent Hoover in a bipartisan dec¬
his

ringing, Grover
that the gold
standard and the existing
gold
dollar would be maintained at all
hazards and that, to this end, all
the
financial
resources
of
the
United States would be mobilized
laration,

Cleveland

of

the
type,

declaration,
coupled with a reasonable policy
of party cooperation, would prob¬
ably have prevented the disas¬
if

necessary,

such

a

of our currency
and banking system in early 1933."
trous

That

me

collapse

statement
is

than

far

the

England operated with a reporting prices lower reflect pur¬
"redeemable currency" from 1821 chases of limited items in an overuntil 1914—and still managed to
supply position.
"rule the waves." On the other
tion;

"Had

after

by Prof. Kem-

more
one

convincing
by

Mr.

de

to
F.

the 1929 "bug¬

"irredeem¬
1789 until
1797, with the result that after
those
eight
years,
Frenchmen
threw out those paper francs with
other wastepaper and trash, as of
France

able"

currency

no

from

value whatever; and Germany,

after World

War I, tried it for a

and by 1923 it required
trillion paper marks to equal

desire

The

inventories

to

and

possible

vances.

by the
greater production
further price ad¬

There

in

23%

from

November

purchasing-power of just one
prewar mark.
the

Mr.

de

F.

alleges

we

haven't

"enough gold for us to maintain
both domestic and foreign con¬

vertibility of the U. S. dollar.
That

strikes

me

as

being

.

.

."
an

tories up,

October to

who

30%

reported

with

that

uncalled

for

-

"reference,"

Mr. de F. goes on to say:

"The

E.

N.

committed

C.

the American

M.

on

P.

has

disservice

grave

a

to

people by publish¬

ing and distributing material that
deadens

the

impluse

to

think.?"

It would appear to have had that

effect

on

there

are

Mr. de F.; but I am sure
millions of Americans

who will vouch for the fact

that

Dr.

Spahr's writings on soundmoney have had the opposite ef¬
fect

on them, and stimulated their
"impulse to THINK!"

FREDERICK
Nov.

G.

SHULI*

14, 1955

2009

Chapel Street,

New

Conn.

Haven,

any

"soft spot" that

in

lowered

who

54%

were

the

good

balance

said

in

scarcities.

inventories

attribute this to

same

between

movement

of

a

goods.

16%

with

in

Employment

Very little change in the em¬
ployment picture is reported this
month. Shortages of skilled labor
and

good

indicated
members.

clerical help are again
by many Committee
The

6%

who

reported

employment as off believed this
to be a temporary situation due
to

strikes, overproduction in Sep¬

tember

and

October

in the number of

reduction

Policy

Buying

Again, the policy
showed

or

operating shifts.

production
change from

on

little

October, with 48% reporting cov¬
of 90 days or more.
On
capital goods, 77% reported a lead
time of 90 days plus, identical
with October. For MRO supplies,
erage

remained

80%

mouth

to

the

in

reported lead time of
60

hand-to-

60-day basis, and
more

than

days.
The

general policy is mixed,
emphasis on insuring de¬
livery of many items in uncertain
supply and extending purchases
at current price levels.
with the

Shearson, Hammill Adds
(Special to The Financial Chronicle)

.

LOS

ANGELES, CALIF.—Rus¬

G.

O'Connor has been added

sell

to the staff of

&

Shearson, Hammill

Co., 520 South Grand Avenue.

He

formerly with

was

Fewel &

Co.

Joins

Hanrahan Staff

(Special to The Financial Chronicle)

WORCESTER,
&

rahan

MASS.

Tillson is

ford T.

Co.,

now

—

Main

332

Hal-

with Han¬

Street,

members of the Boston and Mid¬

Stock Exchanges.

west

Andrew Reid' Adds
(Special to The Financial Chronicle)

DETROIT,
is

Smith
Reid

&

MICH.

now

—

Louis L.

with

Company,

Andrew^ C.
Ford Building,

members of the Detroit Stock Ex¬

change.

Frank C. Masterson
Frank

Frank

C.

C. Masterson, partner in

Masterson

&

Co., New-

member of the
American Stock Exchange, passed,
York

City, and

There

away

suddenly Nov. 26 at the age

month

of 61.

inventory

little change from last

stocks,

this category.

inven¬

mainly to meet new or¬

The

and

increase

an

was

der demands and cover

was

year-end

reduce

tempered

is

need to protect

few years,
one

him"—followed

specific quote from Dr. Spahr's
writings, in an effort to prove

Inventories

tried

hand,

scurrilous

is

noted this month. There were 53%

merer,

In

with

agree

items

attempt to say
There are more suppliers ac¬
Again quoting Mr. de F.: "But that the Great Webster was merely
tively soliciting competitive busi¬
the hard fact of the matter is indulging
in
idle conversation ness but that does not necessarily
that our banking system did col¬ when he laid it on the line in
mean they are offering concessions
those words, more than 120 years
lapse in 1933."
However, there
in price or service, according to
was
no
"collapse" of the Dollar ago?
72% who reported on this soecial
of its own accord—it was "col¬
Again quoting Mr. de F.: "Prof. auestion. The remaining 28% said
lapsed" by a dishonest govern¬ Spahr believes that the lessons they were experiencing a combi¬
ment
that
"devaluated"
it and of history favor use of a redeem¬ nation of
hard selling with some
took us off the Gold Standard. able currency. There is good evi¬
price and service concessions, as
We need not have gone off the dence that precisely the opposite well.
Gold Standard in 1933!
On what is true."
I for one, would wel¬
Commodity Prices
the American Dollar honest!

mat¬

a

port their position as the same or
better.

de

somewhat

a

last

know, indeed, that all bank¬
Although the number who re¬
notes, to be safe, must be con¬
ported commodity prices as higher
vertible into gold and silver at
still exceeds those who find prices
the will of the holder"; and - he
are lower, the ratio is much closer
went on to say that "any attempt
than a month ago, confirming the
to give, value to any paper of any
reported
October trend toward
bank, one single moment longer
price stability. Inventories are up
than such paper is redeemable on
slightly, but in keeping with high
demand in
gold and silver" is
production levels. Employment
a
"miserable,
abominable,
and remains
high,
despite
sporadic
fraudulent policy."
strikes.
Mr.

After

orders, 86% re¬

"I

Will

a

reference to "Prof. Spahr's mental
attitude toward those who dis¬

evidence of

no

sees

evidence of any "soft spot" that

his statement with the opinion of

"purposes"
grace
kept clearly in mind. For
State*—Daniel Webster! AcPres«r
example, the founders of the Fed¬
eral Reserve System must have ing the U. S. Seriate on Feb. 22,
1834, in an address which carries
had
"honest
money"
in
their
the title, "A Redeemable Paper
minds as well; for they clearly
Currency," Mr. Webster voiced
stipulated that all Federal Re¬
serve

in

might change in the present high level of business activity.

ir¬

an

in

over

can

interest-bearing-gold
tress.

Survey Committee of the National Association of

Purchasing Agents

un¬

own

the New Deal

will
prefer interest-bearing-dollars in
a bank, rather than
hoarding non-

provided

currency

F.)

(de
present

"honesty"
they

Signs of Economic Soft Spots!

that it is not over-issued." Then by

his

the

"de¬

reasoning by Mr. de F.: "Prof.
Spahr states than an irredeemable
There

in

government,

in 1933.

our currency

Following is another choice bit

honest.'

their

con¬

the

honesty of the
banks, they will leave their dol¬
lars there, at interest.
And, by
the same token, so long as people

of

currency

people have

as

in

of

"foreign"

without

either.

on

our

were

—still bringing in

the

had

ounces

—

been

merer

on

converti¬

"amazing" statement; for in 1933, have confidence
we

A composite opinion of purchas¬
statement, our ing agents who comprise the Na¬
tional Association of Purchasing
currency
is both "un¬
with prosperity, panics, wars,
sound" and "dishonest"; for it has Agents Business Survey Commit¬
and whatnot.
since been greatly "over¬ tee, whose Acting Chairman is
While Mr. de F. alleges that long
Marshall Pease, Assistant Manager
issued"
$30 billion today, as
"the Federal Reserve System had
of Purchases, The Detroit Edison
against less than $6 billion when

with minor exceptions, was main¬
tained as such right down to 1933

ls

get this nation back

domestic

twenties.

foolish

so

banking system "stand up" in the

1929.

reasonable

were

be faced with

tinuous

F.

"stability of the dollar"
man can be
accomplished by any
other means—and that "one thing"
to

stable."

ment?

has been credited with saying that
"not one man in a million under¬

are

remain

for

the

Mr.

that there is "unanimity of opin¬
ion among specialists in the field

the

money

possibly

blame

However,

to

expec¬

"stability of the supply of

to

ware

Spahr

F.

be

mists, has been doing in excellent
shape for the past several years.

70

the

and the

to

as

of

of

the

collapse

that

economics

about

by

supply of

money

that

"stability

determined

bling

the

with

that

bugaboo of blaming the Gold

"avowed propose" of the ENCOMP
is to "enlighten the public as to

of course,

that

inflation.
says

about

have

E.

mittee

further

Standard

Associ¬

restoring domestic gold converti¬
bility of our dollar," Mr. de F.

as

can

continue

old

"Na¬

a

mote

Mr.

ufacturers"

is certain

"as

money?"

ation of Man¬

taken

money

motes

s>&

Pointing out
tional

It

be

"printing press"
do nothing but pro¬

inconvertible

F."

that the

gold."

as

again

present

Mr.

Mr.

de

will

of
our

circulation has increased from less
than $6 billion in 1932 to more
than $30 billion today, how can

de Fremery as

"Mr.

good
our

foundation

mind—if

Today, we have nearly
confidence in the ability 700 million
ounces of gold! There¬
banking system to stand fore, "history" would seem to
up
under
a
collapse of credit prove that we have
ample gold
abroad." However, our chief con¬
to support an "honest" convert¬
of

But, since the supply of money in

■

To

to

dollars

paper

will

'

H1

from here on,

refer

"honest"

in

our

we're

the

loss

Standard, whereby

supply of

conserve

space,

and

Gold

tation

Nov.

of

the

Again, he
is primarily

your

1955.

3,

one

Criti¬
of
Its

in

issue

the

An¬

Policy Toward
Gold Stand¬
ard"

is

de Fremery, entitled,

Robert

"NAM
swers

amazing ar¬
read on the

ever

Money

of

question
by

most

have

I

ticles

firm

of

would

gold standard by Dr. Walter E. Spahr.

bear

restore

bility

Mr. deFremery on Gold Standard

to

government
to

as

on

(de F.) goes
"But—and this is very

say:

25

a

26

The

(2330)

Our

F. H. Greiie & Go.
A.

associated

Powell

with

has

note,

formerly

ing

Central

depart¬
East¬

of

with

was

the

Reed,

F. H. Crerie

has

Co.,

Vincent

A.

Powell

expected when the

was

raised.

was

hand, the

distant maturities have not been

more

market

for

Crerie & Co.

right through to the end of the

little

or no

profits and no under-six-mont
profits, it is an advantage to tak
losses in a different year from t

Higher Discount Rate

SAN

Calif.—The

FRANCISCO,

interest rate raising and money tightening efforts of the
powers that be have brought about higher rates for borrowings,

profits.

but

perceptible extent the
The 2 V2 % rediscount rate, the highest in more
than 20 years, resulted in
pushing up the rates for banker accept¬
ances, commercial paper as well as the yield on Treasury bills.
Finance

Francisco

no

Nov.

its

annual

meeting

17, 1955, elected the follow¬

ing officers for the

year

1956.-

President—Howard C. Tharsing

(Dean Witter & Co.;
dent— Peter

Cox);

Vice-Presi¬
(Dodge &

Avenali

Secretary-Treasurer—Wil¬

liam M. Bennett

change

elected to the Board

were

(Sutro &

Bing

Co.);

Sydney

P.
Harrison
(Loomis,
Sayles & Co.); Eugene H. Gray
(Bank of California N. A.); John

likewise

raised

While

rates.

in the "Prime Bank" rate

now

banks

there
far

as

losses.

have

moved

the

constitution

the

of

Society,

:K. Taylor Peery, who has served
President during the year

as

will also continue to
Board

serve

1955,

on

the

$ governors in the coming

c

the large

as

The

following

elected

were

to

regular membership in the Society
Nov. 17, 1955:

-on

Orlando
liam

Richard

Staats

R.

&

Jenkins,

Co.;

Wil¬

Harry R.

.Glover, American Trust Company;
James

K.

McWilliams,

Crocker

'First National Bank.
The

were

mercial

their

banks

have

called

To be sure, money is

loans

of

brokers

dealers

and

in

seems

in

to mean,

in

market

order

though it

even

Large Demand for Long-Term Debt

a

of

a

2%% certificate and

new

until after the turn of the
year.

and

though

the

rediscount

rate

doubt but what the interest rate

no

to

important
since

the

obtain

factor

credit.
far

as

objective

of

The

the

as

the

net

a

government

sponsible
going

in

on

a

and

good

is

at

it

this

rate

is

effect

an

not

and

a

the

However, there is

raising operation of the

are

these

of

mone¬

upon

still

the

important in the

very

operations
volume

continue

it

as

distant maturities.

tions of these

There

tax switches

well

as

June

as
or

are

ff

O

are

almost innumerable

combina'

making it.
of

This involves the sale of

1959/62

and

the

November, 1961.
an

ttriTn

1-.

1 ! 1

!

O

_

1

i

•

j

■

-

.

maturity and price

ciations.

With Real

(Special to The Financial Chronicle)

appre-

.

& Co.

staff

INCORPORATED

210

ANGELES, Calif.—George

of

Dempsey-Tegeler & Co.,

West Seventh

Street.

BEVERLY
O.

Schlicht

Property
South

'

15 BROAD

Property Inv.

HILLS, Calif.—Jack
is

now

Investments

with

Real

Inc

233

Beverly Drive.

ST., NEW YORK 5

WHitehall 3-1200
231 So. La Salle St.

45 Milk

Edward Boyd Jr.
St.

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463




'

Edward Boyd, Jr.,
Philadelphia
manager for Harriman Ripley &
Co.

Incorporated,

passed

Nov. 21 at the age of 67.

in

merely

was

away

With

sort

LOS

ANGELES, Calif.
Orma
F. T. Stanley is now with Shelley
—

&

of

Here

to accomplish this: Supjones>
the 91% bracket,

jqq

^as

profit

shares of over-six-month

preferred stock that cost him $100
share.

a

$16'0

The

which

stock

is

now

worth

share

a

because of an acof
$60 of dividends

about to be cleaned up.
the $6,000 of divi-

are

receives

dends, he will have to part with
Q1% Qr 5j46o iess $240 (4% of
$6,000) or $5,220.
Y '
...

a

.,

.

.

+H™evtr' by s+e*ling tbe £
at 16.0' be^ore ,t:5S!
jjate (that is, at least four fu

business days before the dividend
.^ecord date),,he gets the sam
$6,000, but it is now in the form
of profit from the sale cf overHis }ax
%

T

°u $ V-?i
(
$3,720. If he still wants
nmmtain his position in the p ferred stock, he can step r g
bac.k ln.t° the market jjjter
dividend date and buy 100 sh
.
That puts him back to wheie
ahead ot

but

stockwise,

tax-wise.

How Wash

If

Treated

Sales Are

stock at a

sells

investor

an

—

to

1956,

for that matter
This is because of
or

This is known
wash sale. The tax ettect
plished: Jones has in his box 100 as lf the sale never took place,
shares of stock that he bought in
The disallowance applies to a
August 1955 at 60. In December purchase not only of the same
1955, or four months later, and security, but also of substantially
security is bought.

'

closed out.

Here is how the shift is

He
box

in

his

stock

December

he

85,

with

take the

can

is

accom-

1955

goes

broker,

out

as

a

the

and

sale of

his

chase of
of the

liver it to the broker to close out
the short sale.
That will result

Accordingly.

securities.

identical

de-

of

a

a

stock

voting trust

certificate

stock, or vice-versa

same

if

is

the l°ss
the sale is of stock

under the ban.

will stand

and the pur-

However,

under-six-'month orofit. of one company, and the Pm'caa?
If he figures he is better off from is of stock of another, even thougn
a ^ax standpoint to push the $2,500 the two companies are in the sam
Pr°fit into 1956, all he need do is line of business, their stock sei
°H covering the short sale at the same price, and moves ma -

*n a $2,500

until

time

some

in

takes it out of his
-

t

and

1

1

1

'

—

——

—

1956.

1955

puts it in 1956.
an

owned

covers,

under-six-month
when

he

went

same

the

ket-wise in the same way.
The

stock

profit,

short
for

law

to

ance

No matter when Jones
is

That

return

confines

A

cisions hold that for this
commodities

-

de

purpose,

securities,

are

he

less

disallow-

the

"securities" but some

...

How to Identify

Cnlfi

Securities »

If when he went

Suppose Jones buys 100 shares
the stock more of stock in 1953, at 70, and another
than Slx months, the profit on the 100 in 1954 at 80. In 1955 he sen
cl0se"out of the short position is ioo at 75. Does he have a
an over-six-month profit.
point profit or a five point los^

short he

....

owned

Shelley Roberts

(Special to The Financial Chronicle)

Roberts

on

way

p0ge

short sale it is pos-

a

than six months.

(Special to The Financial Chronicle)

Millay has been added to the

tax limit

Profit, and then buys the
right back, the profit is taxed. No
indefinitely.
s0 W1th losses.
There is a
the rule that no gain or loss need that says that no loss will
e
be reported on a short sale until lowed.on a sale if within 30 day
the
short
position
is
actually before or after the sale the
1955

because

Dempsey-Tegeler Adds
LOS

Dividends and

Capital Gains

sible to shift profits or losses from

>

D.

a

started

Through

it

Aubrey G. Lanston

and

and

market

purchase of the
It is being pointed out that this switch
increase in yield, and a
specific maturity obligation,
I
4-L
7
along with the possibilities of a shorter
2 /2S of

provides

year

stock

being made.

2J/4S

same

the

recommending

those that

December

profits

the

the

the

the

short

seems as though the following
swop, which takes
intermediate term obligations, has worked out
quite well
according to reports from those who have been

it

The
is

years

net deduction of only $500,

when

be

However, it

in

.g

remaining

losses.

three

the

re¬

to

obligations.
The trend in these swops is the
has been,
mainly from the shorter-term issues into the

same

for

activity which is

and

these

more

Into

rather than regular income.

To Tax Advantage

2V2%,

the ability of
availability of credit is the all
powers that be are concerned,

exchanges
part

the

$2,000

"vstand-off

policy of

since

the

effect

the

I

market

for

way

$2 000 over1955 and to

in

deducts

of

taking

The Most Popular
"Swop"
switches

Interest

How Short Sales Can Be Used

must obtain funds.

Tax

take the

profits

to

is

a
deduction
of
$1,000, whereas
taking the losses first, resulted in

"active restraint" is to cut
supply of credit that will be at the disposal of those that

down the

Convert

the game by $3,720

one, because of the spread between
rates which are
charged to borrowers.

other

he

$1,000

Shortage of Credit Impends
Even

1956,

m

bet, however,
thing the other

the

"1957,

money

government, is not expected to be made

$500 income

$2,000 losses in 1958. Bydoing this, he reports in 1955 one-half the $2,000 profits, or $1,000.
In
1956, he has a deduction of
$1,000 of the $2,000 of losses. In

refunding

the debt limit of the

ar

take the

a

raising of the Treasury has been separated
operation, but the new money issue, most
likely a tax anticipation certificate, should not be too far behind
the financing which took care of the
maturing obligations.
An
offering of Commodity Credit Corporation securities, which would
ease

net£ Profit

best

around

important holders of the maturing obligations and there is
question but what the refunding issues, most likely the cer¬
tificates, met the needs of the Central Banks. It is also evident
the

a

$500.

six-month

were

from

1

•

to

.

27/s% note, seems to bear out
the contention of Treasury that there is no real demand at the
present time for long-term securities. The Federal Reserve Banks

that the

$2,000 losses

net deduction for both years

Jones

obligations through the

medium of

borrowers

SECURITIES

and

1955

or

!

tary authorities will in time have

PUBLIC REVENUE

capital-gain
investment

,

How

$1,000, one-half of which, *cumuiation

in

(of short-

Varian Associates.

and

1956, making

switch

No

this

$500,
is
reportable.
Jones,
therefore, has a $1,000 deduction

to

The fact that the government made a split
offering
term securities to holders of the
rpaturing

the

1955,

For

1956 of

the honest thing to do.

was

^Sured.in

is

or

help the Treasury over
the hump of its refunding and new
money raising operations.
The recent rise in the rediscount rate, in the face of the
Treasury
financing, has not made the lot of the government any easier,
money

punitive

STATE, MUNICIPAL

s0_caBecj

Because of the 25%

give him a $1,000 deduction and
$1,000 to carry forward into 1956.
This $1,000 is applied against the
$2,000 of over-six-month profits

se¬

tight and if the recent rise in the redis¬

what it

means

Louis Spitters, Blyth
Inc.; William K. Bowes, Jr.,
Blyth & Co., Inc., Charles J. Marsh,

U. S.TREASURY

t^e

dividends of regulated

ge^

way:

"active restraint" money
could get tighter before there is
very much change in policy.
There might be, of course, some short-lived and temporary aid

following were elected to
membership:

Laurence

^

nQr

zero.

It

deduction.

curities, other than governments, because of the need for funds.

associate

& Co.,

companies and savings banks

ance

losses m 0ver_six_m0nth
profits, it is nat$2,000 profits m 1956, uraj for pe0pie jn
brackets
is ahead of the game by a $500
^

he

are

no

year.

annlv

1955 and the

"prime rate" up from 3 V2 % to 3%%. There
also reports that some of the larger financial district com¬

(Henderson & Co.); Ed¬
P. Brown (Blyth & Co. Inc.).

In accordance with the terms of

these
those

dividends from "mutual" insur-

he takes the $2,000

If

been

has

result is

the

Renshaw
ward

are

then, the allowances don't

For
example, suppose.
$2,000 of open over-sixprofits and $2,000 of open
If he thkes both in 1955,

month

concerned, it is reported that certain de¬
posit banks in the interior and the Western part of the country

given to the

of Governors:

Ralph A.

to

up

count rate

In addition to the above the fol¬

lowing

companies

commercial

(Investment Con¬

sultant).

which

apply

Jones has

far this has not slowed down to any

so

Security Analysts Society of San
at

to

allowances

two

to'1 Ev^
+u

over-six-month

Where there are

demand for credit.

Elect New Officers

dividends
-

more

Spacing Between Years

H°w

The

Analysts

This reduction
than 4%
0f the year's net taxable income,

tax cannot be

six-

let-up

in Houston, Texas.

San Francisco

is one limitation.

is so

as

frequently done, may let the
month mark slip by.

year.

Broadened Impact of

of the year,

end

the

til

longer-term government obligations is th'n
and to a large extent professional.
Tax switches continue to be
very important as far as volume and activity is concerned and it
see

alertness

means

throughout the year. To wait un- ;in

the

exchange will

this

All

disturbed

is expected that this kind of

Inc.

direct wire to

a

much

market had been talking

money

uptrend in short-term rates

Bank rate

Securities

on

before the If a husband and wife each haVe
had . run, it stock of their own, or own stock
woulcj have been applied against jointly, the $50 exemption applies
$2 000
of under-six-month to each of them. That means $loo
profits. That would have left him in total for both, whether they
$2,000 of over-six-month file separate or combined returns
profjts, of which only $1,000 need .*
(2) On the remainder of the
reported (with a maximum tax dividends, after the tax is figured
compared with $2,COO of in the regular way, the tax is
"
-L,~-L1— — J—J 4
Ar"
"
regular income the other way then reduced by 4% of the amount
around.
: <
of all dividends received. There

by the hardening of interest rates, because
the belief still persists that the
money tightening operations of
the powers that be will not be of too
long duration. To be sure,

Lear & Co.

and

The

On the other
too

Securities,
and prior
ern

thereto

in line with what the

was

about.

1

,

period

six-month

a
passing amount of attention is being given to the refunding
operation of the Treasury.
The offer by the government which
exchanged the maturing December l%s and DAs for either the
one-year 2%% certificate, and/or the two-year six-months 2%%

with the trad-

1,1955

taken his loss

If he had
•...

department.

Thursday, December

. . .

Pointers

Income Tax

The government market is in the process of adjusting itself to
the rise in the rediscount rate, while at the same time, more than

Mr. Powell

ment

Governments

on

By JOHN T. CHIPPENDALE, JR.

and

Co., Inc., 19
Hector Street,
N.
Y.
C., as
manager
of
the trading

was

Reporter

become

Crerie

H.

F.

V

Continued from page

Vincent Powell Joins
Vincent

Financial Chronicle

Commercial and

Co.

lar income,

tax

(1) The
are

but^also get two special

benefits.

They

first

$50

are

of

has

dividends

completely exempt from tax.

costing <u> ^
profit. He c
selection °£

the 1953 certificates
a

make

five
his

tificates,

point
own

and

so

he

can

cot

182'' Number 5486

Volume

.The Commercial

v.

and Financial Chronicle

27

(2331)

whether to have a profit or a loss.
The same result holds good if he
instructs his broker at the time
of the sale whether he wants to
sell the 1954 block or the 1953
block. His instructions will con¬

in

,

(

Bank and Insurance Stocks

Securities Salesman's Corner

trol.

By JOHN DUTTON

=

nothing, and the cer¬
tificates cannot be identified, the
rule is that the 1953 block is sold
first, because it was bought first.

■

.

By ARTHUR B. WALLACE:

=

If he says

during

Commissions and Other

How

Are

Expenses

addi¬

are

the cost of securities, and
commissions are deductions
from their sales price.
Commis¬
sions therefore
affect only the
tions to

sales

profit or loss on a trade.
State transfer taxes

regular deduction. The rule
Federal transfer taxes is not

a

as
on

It has been held to be de¬

clear.

ductible by a trader in securities.

this

Whether

also

applies

to

an

investor is uncertain.
is

It

to

have

regular deduction because it
mean 91 % saving in tax.
As a
of

duction
in loss

profit

on

re¬

increase

an

tax

profit

the

interest

Is

in

the

to

to

applies

can

trade, the tax effect

a

limited

is

or

a

on

rate

is yes—with

answer

The

interest

mere

"but."

a

charge

by

a

is not enough to give the
deduction to anyone who makes
his return on the basis of cash
broker

1

coming in and going out.
terest must be actually

The inpaid

to

the broker.
However, collections
by the broker for the customer's

of interest

and

customer's

securities

account

the

on

looked

upon the same

cash

paid

also

are

by

the

dividends
are

much

so

as

customer.

proceeds

of

So

securities

sold.

Dividends
short

sales

and

premiums

deductible.

are

on

Other

deductions include cost of invest¬
ment counsel

advisory services,
subscriptions to statistical services
and investment literature, rent of
safe deposit
for

or

boxes, custodian fees

securities, office expenses, cost
professional services for pre¬

of

paring

defending

or

returns.

tax

Timing of Year-End Sales
Year-end
to take

is

familiar

a

is

tax

profits

selling,

whether

establish losses,

or

Timing

occurrence.

important,

else

or

transaction

a

intended to affect 1955 taxes may
turn out to be a 1956 item, and

vice-versa.
is the

The

for

reason

this

interesting rule that profits

not considered realized for tax

are

until

purposes

the securities

delivered to the buyer.

are

sold

Losses,

the other hand, are deemed to

on

be

sustained

made

when

the

on

the

floor

sale

of

the

is
ex¬

change, regardless of the time of
certificate

New

various

York

have

exchanges
four

a

in

business-

that
the latest day to take profits for
23.

in

1955

means

returns

is

Dec.

Securities sold

on the next
business day, Dec. 27, will not be
^

delivered

until

Jan.

item.

Between

securities
instead

delivery,
can

still

In the

taken

be

can

of

the

case

and

26

sold

for

regular

1956

a

30,

"cash"

four-day

in that way profits

and
be

Dec.

and

1956

2,

the profit will therefore be

established
of

for

losses, they

1955.

can

be

up

to

by sales made right

between

the

sales.

for

number

The

are

time

of

con-

spent

needless

m

wasted

travel,
the
hours
running down worth-

on

leads, must be reduced

to

a

minimum if productive results are
to follow.
These facts are well

known.

Any man who can use
telephone to good advantage

the

(and it
tool

and

can

a
long
substantial

gone
a

i

*

spend

There are periods such as today
(and during the past five years)

investors

creasingly

have

been

acceptable

tions

for

The

competent

investing

that

sale

to

in-

sugges-

in

securities,
salesman
who

he

must

before

he

the

make

create

can

a

customer

goes
directly
to
the
target when he wishes to obtain

order.

labor

The

rules

turns

ing

on

in

amounts

nical
the

think

don't

I

this

interested

point but

in

I

(making a profit). When this is the
prevailing psychology the sensible thing is to get to the point—
make

it

specific offering and put

a

concisely

how

tell your prospect
income he
will
get

—

much

and

why he can depend upon get¬
ting it if he wants income—if he
invest for capital appre-

wants to

ciation

crual
accrual

the

basis

as

cash

com¬

from

distinction

against the

Taxpayers
can

losses

take

for

who

is

on

profits

1955

ac¬

the
or

by sales

fight through Dec. 30.




who

want

make

can

the
their

up

pay you.

Weed out customers who expect

to

you

time

give

to

them

the

a

services

your

come

Quite often

they will
for you.

better understanding,
will

then

be-

valuable to them and

more

become

ten

better

clients

him

show

this

how

can

be^ achieved. Verythey se dom
few people
statisticians,

want to listen do the reaso
m

FORM

than

in

y

I heard of

a case

where

a

minutes

two

to

(I

am

Txru-Ann1 HE
WHAT

Care should be exercised in

a

reads

CAN GET

prospectus carefully, if
at all. He can rarely concentrate
for

a

like to

he would

do

it would cost him

underwritten

discussions.

eralities,

and

wishes

he

wants to

to

in

gen-

objectives

that

accomplish.

He

in

believe in someone who

Qn

buyer
he

market

in

is

in

and

or

earned

premiums ratios.

of premium

Now
many

higher

that

yielding
also

can

foregoing description
ELIMINATE

and

as

THE

Try

to

suppose a

well

Most
over

as

by

caused

that

possible

OTHERS.

over-active ego
a
thyroid.

the

Agricultural Insurance
American Insurance

34

j Bankers & Shippers
Boston Insurance

have made an
especially
good sale, or developed a substantial new account, or accomplished
something that gives them satisfaction.

is

a

Selling

is

a

Major Casualty Affil.

26

15

56%
34

41

^Continental Insurance

74

27

^Federal Insqrance.^^

42

Fidelity Phenix

29

'74

Fire Association

27

100

Fireman's Fund__

64

77

Firemen's Insurance

23

65

Glens

44

58

Great American

23

71

Hanover Fire

28

your

who
are

jnvestor

Insurance

Falls

78

Hartford Fire

20

Home Insurance

24

Insurance Co. No. America

33

93

25

38

Fire

National Union

22

Providence

United

States

42
74

Company

66

Surety

Continental Casualty

56

Fidelity & Deposit

45

Maryland Casualty

——

Massachusetts Bond.

Amsterdam

New

Seaboard
United

has

There

amount

the

Major Fire Affiliate

74

American

Chronicle)

41

35

Aetna Casualty

Joins Fewel & Co.

47

29

Fire

Parent

time on any others.

Calif.—Albert

—

Westchester Fire

wm act.
this type of
today to spend

ANGELES,

26

29
26
21

Washington

Paul, F. & M.
Security Ins.
Springfield Fire

anxj

(Special to The Financial

16
24

St.

tQ0 many of

around

32

—

.—

Phoenix Insurance

investment acenjoying today.

buy

River

North

53

15

Pacific Fire

recommendations-

can

Hampshire

Northern Insurance

of

68

-

23

New

cus-

Shearson Hammill Adds
LOS

a.

Chronicle)

ANGELES, Calif.—Ronald
has become connected

Pain

wjth

Shearson,

520 South Grand

Hammill

&

of

——

81

89

Cas

43

Surety

States Fid. &

72

Gty.

16

58

omitted the data for small

been

affiliates, where

business is small, or where organization was so
their data of small value for this study.

recent as to make

a

challenge,

business for men who can

g943

with

Wadden

BANK

the

LIMITED

Inc.,

affiliate.

Guaranty Trust Go.
New York

Government in

Kenya Colony and Uganda
Office:
26 Bishopsgate,

Head

West

London, E. C. 2.
End
(London) Branch:

St. James's Square, S.
Branches in India, Pakistan,
13,

Paid-Up
—

Wilshire Boulevard. He was

formerly with Boren & Co.

to

Authorized

Calif.

& Reed,

Bankers

land

B^ha^ Xsch^as becomVaiiiliated

of INDIA,

the merged

Tanganyika,
Somali-

Capital

£4.562,500

£2,851,562

£3,104,687
description of
banking and exchange business.
Trusteeships and Executorships

Reserve
The Bank

Fund

conducts every

also

undertaken

On Request

Ceylon,

Protectorate.

Capital

Bulletin

W. 1.

Uganda, Zanzibar, and

(Special to The Financial Chronicle)

HILLS,

include

not

Burma, Aden, Kenya,

Joins Waddell & Reed
BEVERLY

Does

NATIONAL

Co.,

Avenue. He was

never

pride and pleasure they feel after

it

writings, geographical distribution and other relevant

in-

possibly

salesmen

reserve:

suggested that allocation

31%

was

get formerly with Walston & Co.
the little harmless personal
mature

But if two

the loss

compare

It is therefore

Parent Company

grow.

successful salesman

naturally has on
as

to exist.

ceases

Aetna Insurance

who will buy_
who need a minimum 0f personal
attention_who can place faith in

Everyone

Sell

to

Averaged for Ten Years, 1945-1954, Incl.

hundred

a

Miller has become affiliated with
Fewel & Co., 453 Sa"th Spr• g
the problem
is to see as Street, members of the Los Anof these people that fit the geles Stock Exchange,
for

dollars

vestments

reason

Ratio of Loss Reserves to Earned Premiums|

the people

LOS

example, there is

an

fairly evenly distributed, it is logical to

without prolonged

as we are

today's

as

multiple line writers have their allocation of premiums

more

but what

so

over

discussion

periods

mood to swap

a

group

third unit is introduced that writes

a

gories, etc.) the basis for comparison

thereby eliminating

suck

your

different

require

so

large multiple-line of business (compensation, automobile cate^

a

his customer accepted

extra

primariiy

and

and

*

pis suggesti0ns

ing, and the investigating for him.
That
is
the
average
individual
security

If, however,

National
that time

There

greatly

And, comparisons within either

Thus, where the bulk of writings of two companies

them.

compare

the think¬

the hard work,

do

can

thinks

He

so

surety and fidelity bonds,

^ ^^'Ara resuU^he gor^he

and

differ

loss reserves.

on

comparability.
is in

that

f

.

prolonged periods on involved

making comparisons in this sched¬

valid only in cases where the basic factors show considerable

are

dollars in other commissions if he

gee

to

.w w*

tivity

investor seldom

set-asides

Any comparison between a fire company's ratio and that of
casualty unit would be meaningless, simply because the types of

o

WANlb.

individual

reserves

ule.

rr^Tj-rc w
ei+i
tomer.'s desire to have someone to
HIGHLIGHTS,
be
positive,
be converse with.
People who need
friendly, think, talk and act like
^ investment advice, who are
you
know your business
don t
pleased with their securities, and
parade
knowledge,
don t
bore who like
you> win allow you to
him, just
coming back to converse
your limited time during
«

loss

sales-

^^?,U
salesman explained

The

^

of

true of casualties than of fires.

neighborhood of this client. As
^1S business grew''it became nripossible for this salesman to continue making this long trip. One
day J*1® c?Je/1^
^lm and

ap

1954,

data be utilized to determine comparability.

^explanations

t
certain way for mo

a

one

s

with

period. Also given is the same data for,
in the cases of fire companies, each company's major casualty
affiliate, and, in the cases of casualty companies, the major fire
affiliate. Not all companies have affiliate
units, this being more

man

a?Jie
him.

ended

years

risks

polite but firm show of independence will bring some people
and

the

earned premiums in the

treatment

your

a

around to

reserves equal,
on average, to 93% of earned premiums, is
giving its stockholders a greater growth in his equity than a closely
comparable unit that reserves a definitely lower proportion.
In the accompanying schedule are a number of leading fire
and casualty insurance companies, with the ratio, averaged for

of

pressing duties.

have other clients too.

loss

valuable

your

exclusion
and

effectively, and who know that
your time is valuable and that you

they

basis

basis.

establish

of

of

and

chances are good that it is over-reserving.
The effect of overreserving is to salt away equity. For example, it seems to be
beyond question that a company that in a ten-year period sets up

are

I
re¬

owing to them. The tech¬
for

invest,

$10 in commissions they

have

simple

a

capital gains

apply

distinguished

as

name

cash

basis

"tough sale"
time on people

(Special to The Financial

just described

the

satisfaction

that

your

a

Where, over a sustained period, one of two comparable fire or
casualty insurance companies sets up proportionately larger loss
reserves
(related to earned premiums) than does the other, the

several years ago followed a
example will suffice.
Many in- lead 50 miles from his office. He
dividual investors today are in- occasionally would handle some
terested primariiv in income (re- small orders for this client and
tired, people
and those in the each time he w0uld make the trip
higher brackets that may buy and spend almost two-thirds of a
tax-exempts). There is also an day doing it. He also would call
ever increasing
number who are an a few other prospects when in

Don't

taxpayers who make their

toward

client, give

or

personal

making

the end of the year.

to

prospect

Don't take this as an admonition
t° li«iit service. Give service to
those who desire it, can use it

.

.

,..

an

the

up

directed

were

BETTER

other clients

Prevailing Mood of the Public

to

effort

minds;
and
who
don't
expect
$1,000 worth of service for every

ci

first

to

working on accounts that are dif—
ficult, time consuming and in the
last analysis more
likely to be
unprofitable
(considering
time
and energy expended) than if this

who

it), and also

„

knows

much

comes

facts,

clientele.

when

So

it

to contact prosclients
if
you
have
use

profitable, has
toward building

way

you.

when

where

to

eliminate prospects and clients that are
not

to

up

But

activity

want

can

mastered

of

be the most effective

can

you

are

that.

two feet and

own

line

one

results

rela-

their

on

is

week

direct

a

it

plans

he

prospects that

tacted and

The

day delivery rule, this
inclusion

tionship

busy

well

There is

qualified

delivery.

the

As

how

1

balance

brokerage account deductible?

a

The

time.

that

loss.

or

debit

a

of

time stand

unavoidably wasted

salesman's

a

pects

advantage

an

his

less

be taken

can

are

regardless

Treated

Purchase commissions

^ar}J hours of valuable

and effort

This Week—Insurance Stocks

Screening Prospects

i

Laird, Bissell & Meeds
Members New
Members

York Stock Exchange

American Stock Exchange

120 BROADWAY.

Telephone:
BPU

NEW YORK 5, N. T.

BArclay 7-3500

T'letVOP—NY

(L. A. Gibbj, Manager

Specialists

in

1-1248-49

Trading Dept.)

Bank Stocks

28

Continued from first page

As

would rid

of the so-called agricultural

us

But what reason is there to
suppose
Plan for Asia, and another for

for

Latin

America

that

a

Africa, and still another
the problems which

would

solve

proved too much for Geneva and the innumerable other
"plans" of the day? And precisely what
would a "Marshall Plan" for India
be, anyway, or for
Argentina, Brazil, or many of the African areas? Why
should we expect the populations of these countries to
respond as did the West Germans rather than as did the

conferences and

French,

worse?

even

or

why should

sponse,

most than to

And, failing such effective re¬
expect our billions to do more at

we

buy temporary

if the aid extended is

than

more

we

'

larly if it seriously wasted

from sorrow? And

surcease

Neither freedom

could persuade our¬

selves to pay
to

of the Kremlin

for out of current income, what would it do
economy?

our

Regarded

These and other similar
queries are regarded as in¬

consequential by all too
with

the

idea

that

wealth

limitless, and that somehow

definitely give
tion

over

our

away more
own

politicians who

many

our

we

and
can,

than the

obsessed

are

production - are
without disaster, in¬

excess

of

our

produc¬

and

a

dozen other

things '
time
proportionately more to the produc¬
tion of the
things that the hordes of Asia, the under¬
privileged of Africa and the malcontents of Latin America
and devote

want

our

think

or

they want. But where is the politician who
program? Our economy is ;
just about at full capacity. We can not, as a practical

would dare to
propose such a
now

matter, increase output for the benefit of other
peoples.
To attempt to provide for others
through the simple
expedient of unbalancing the budget and
consequent increases in

costly

debt must

our

monetizing the
inevitably prove a

and delusion.

snare

day-dreamers, of which Mr. Bowles is
but an example,
consistently overlook is the simple fact
that the hundreds of
millions, not to say billions, of men
and women
living in so-called backward countries or in
the colonial possessions of Western
powers must work out
own salvation. There is
no
way under the sun that
we can do for them what
they must do for themselves.
their

Even

our

massive
to but

come

wealth
a

or

our

wealth, I remind
has

been

that Canada

you

leading supplier of
nickel, asbestos, gold, silver, cop¬
per, lead and zinc, to name only a
few, for more than a quarter of a
a

century.
that

What

resources

has

happened

is

submarginal

once

have been moved within the

area

be of real assistance

we

can

by merely voting billions of dollars
or believe
that
anything we do or can do would bring
sharp or decisive changes overnight.
Let

not assume,

us

successful

among

in

of

the

if

even

we

were

to be

helping materially and in winning friends

these peoples,

mocracy or

either, that

we

should be saving them for de¬

saving democracy

matter

knowledge of

is
or

that

most

among them. The cold truth
of these masses have little

interest in democracv

as

we

know it and

revere it. The
experience of many of them with the socalled democracies of the world
has been one of
exploita¬
tion, or economic serfdom. 'They doubtless resent
outside
interference, and wish to be left to
manage their own
business. What
they would do if left entirely to their own
devices would
rarely conform to our ideas of
democracy.
It is possible that

generosity

on our

part might contribute
of the clutches of the

something to keeping them out
Soviets, and that might be worth
while, but let us not
suppose that it would be the
equivalent of freedom as
we

know it and treasure it.

The Kremlin Knows Better
.

of profitable

development by two

forces—first

a

demand

in

vances

duce

level

and

of

ef¬

going
ameliorate
countries.

substance

the

condition

of

They have their

better off than the

the

own

poor
poor

in
who

these
are

to

foreign
often

no

peoples of these foreign lands. They
busily engaged at present in
trying to make friends
and influence
people. At that they are good—when deal¬
ing with areas and
peoples suffering from deep and
abiding discontent. They are the old Russian
imperialists
in new
dress, and they are formidable
antagonists. They
are

would like to have these
alien masses believe that salva¬
tion is to be found
in Communism. The idea
may or may




other

coun¬

a plea for more
liberalized
policies, I do so on the
premise that an easing of restric¬

tions would be to
efit.

I

our

that

know

the

mutual ben¬
task is, in¬

deed, a formidable one, as I am
realistic enough to appreciate
the
inherent
historical and political
difficulties

this

on

elsewhere.

continent and

Again,

I

not

am

un¬

mindful

of the very real contri¬
bution your country has made to
world commerce
and
the senti¬

which

alternative

Your

interest

Dependence

ever,

Canada Has Not Acquired the

no

the

to

by

suddenly

means

you,

as

acquired

Midas

ucts

touch.
The
oil, the
wealth, the forest prod¬
being won from Mother

are

Nature

and

Canadian

ahead this whole

trade

of

will

be the

sub¬

analysis and soul

critical

searching preparatory to the meet¬

ings to be held
in the

new

which

in Geneva early
of those countries

year

participate in the General
on Tariffs and Trade.

commission,
one

how¬

dominant factor

based.

necessity,

The

have

Canadian

which

to

free

enterprise
to

in

"Life

economy

quite

is

for

system

on

the

some

recent editorial

A

come.

thought,
situation

Magazine,"
I
the
general

described

be

telling effect

a

to be followed by

avenues

time

tract:

depends

now

perhaps the

as

organization since its inception in
1947, for the course that is charted
the

be

may

regarded

there will have

Trade

on

forecasts

this

of

heavily
will continue to depend, at
for the foreseeable
future,

cogently.

"The

full

is

Here
and

role

an

ex¬

of free

task

*

least

remind

the

of

there is

will,

and

Midas Touch
want

business

which many of its assumptions

on

one

do

in

Economy
Whatever
made

example, is one of those which
becoming more dependent on
foreign sources for raw materials.

long-range

important conference of this

supply

is

I

ject of

the

on

'

"

Tn the months

important

and

based

'

most

re¬

for

decision
view.

matter

investment circles in this country.

country,

of

sources

source
of comfort, since it is a
policy which calls for imaginative

most

the

of

one

leadership in the fos¬

free exchange of goods
That is, indeed, a

a

services.

and

passing

and create new prod¬
secondly the depletion

outside of Canada.

The value of all experts

and

has

mately
in

amounted

in

to

recent

approxi¬

quarter of gross national

a

product,
5%

services

compared with
United States.

as

the

about
Some

in the next decade is

enterprise

The ma¬

not confined to the U. S.

terials

another

all at hand for

are

levels of
world trade and prosperity. Our
boom and our system are the chief
of these materials; but they need
breakthrough

to

friends

new

and

more

room.

grudgingly as ever, and experts projecting the trends in
it takes time, capital, risks and Canada estimate a
ratio of about
plain hard work, just as it always 20%, 25 years hence.
So what¬
has, to transform these resources ever strides are made towards the

more

into

expanding environment, even U. S.
free
enterprise
and
prosperity

as

usable and profitable form.
Any foreign investor attracted by

enlargement of domestic markets,

get-rich-quick

major influence.

stories

well to recognize that

investigation,
and

sense

would

do

painstaking

sound

investment

appreciation of risks

an

trade

will

where

stead

of

draw dividends

I "suppose

at

might expect

this

me

to

of

next 20

tion is
said

things
25

or

to

years.

you

look

a

come

up

the

on

in

come

the

The tempta¬

strong, but despite what is

about

a

prophet

his

and

honor, I would certainly run the
risk of losing it
here, by being
proven wrong

within a short time!
I say this because
you may be in¬
terested to know that the Cana¬
dian Government

Royal

Commission

it will be to
the

whose

up

task

determine, if possible,

pattern of Canada's economic

development in the next quarter
century. It was felt that the time
had

when the Canadian peo¬
ple should be more fully informed
of

come

the

pects

long term economic
and

that

it

tional interest to

was

in

pros¬

the

na¬

initiate, examine

and

publish studies of the nation's
potentialities. The terms of refer¬
ence

practically unlimited and
hearings already have been com¬
are

menced.

mission's

The

of
will

range

work

the
be

the

Com¬
all-

and

a

like,

amount

product.

Ours

of

is

exports

a

is

to total

sensitively

which
reacts
external
influences.

economy

sharply to
Many times

slight recession in

a

one

country will have a much
greater impact upon Canada than
in the country of
both
industries

origin, affecting

engaged in ex¬
ports and industries competing in
the domestic market.
I

imagine

the

about

thought
to

is

his

bombard

primarily in the interest

own

nation.

True, it is

ter of vital interest to

it

is

one

your

of

of

nation

equal
as

Canadian

us

while

it

is

of

a

of

mat¬

Canada, but

importance to

well.

The

subject

American

-

prime

trade,

concern

to

each

of us, cannot be considered
isolation for it forms but
part
of the complexities of world
trade.

in

Canada is your best customer and
we have
traditionally

since

more

bought

from,you than

we

have sold,

the gap must be filled
by means
of
trade
with
the
rest
of
the
world. But the
gap is not

easily

filled.
months

For
of

instance,
this

will

have
The

a

be

world

no

world

market

market.
and an

limited future."

a

in Canada

Railroad Industry

specific ref¬
about the railway indus¬

I turn now to some
erences

try which, as I mentioned earlier,
has felt adversely the impact of
economic
development.
I
am
aware, of course, that you have
had

■

governmental

own

your

studies and

hearings on this sub¬

ject, but, since the basic problem
is the same as in Canada, I do
not feel that I am intruding on a
matter

of

purely

a

domestic

year

in
it

is

eight
*

esti¬

preliminary, I should like
that if earlier I let
impression with you that rai -

As

crosses

yet another

with talk about free trade because

it

there

Without

nature.

your mind that here is

Canadian

Without real American leadership

flexibility

importance relative

geared

point
take

into the crystal ball and
with
some
predictions

shape

in¬

writing off capital.

exert

We would

self-sufficiency
of less

are required for
Canadian investment if

a

to

to be able to bring our
economy to a degree of stability,

and markets still

he expects to

continue

of course,

making

a

not

of

American dollars.
In

trade

supported by ad¬

technology

costs

ucts;
of

high

recently set

one ^ing we may be certain. The Kremlin is
to pour out large amounts of its

ability

earn

is

mineral

that

to
ac-

This

done. If

not suppose

ability
trading

current

Agreement

years

us

the

course

that the work of this Royal Com¬
mission will have more than a

by

well, but let

with
of

making

ever
undertaken,
findings likely to have a
far-reaching effect on all phases
of Canadian life. My prediction is

goods

very

the

upon

with its

trade.

production,

S.

inflow of

This,

Canada's

her

tries to

studies

such

of

surplus

Canadian

cpunt with the U. S. is dependent

blunder, particu¬

embracing and
comprehensive

on

our

some,

U.

account

that

means

balance

Canada: lis Economic Prospects
And Its Railway Problems

prodigious production

helping hand with

over-all

the

With

the net

as

must assume

businessmen, that Canadians have

a

trade

ments expressed by your adminis¬
that
the
United
States

per head of these Swarms
people. The task of easing the distress of these hordes
work of
decades, perhaps of centuries, and it is work
that they will have to do
themselves or it will never be

wish to lend

and

States.

tering of

pittance

a

we

United

Continued from page 6

of

is

the

on

Deficit

current

on

be

can

on

amounts to

capital from the United States to
Canada may be, it does not
nearly
begin to compensate for our
deficit

substance.

our

Capital

Important

a new

safety from the encroachments

nor

deficit

our

tration

fective

What all these

would

serious

a

S.

Trade

our

consumption. We could, of course,
output of automobiles, household ap--

greatly reduce our
pliances, residential construction

U.

purchased with dollars—particu¬
larly when they do not represent production in excess of
consumption. Slurs on budget-mindedness ought really to
arouse
suspicion of those who cast them. Let future his¬
torians not say that we courted economic death by con¬
tempt for a balanced budget.

Inconsequential

as

commend it could well be

to

politics with

that

picture, we are in the red
thing like $200 millions.

twist.
Strategy must consider the decades ahead. We can not
afford to impoverish ourselves, or to launch upon any
sort of program which might well leave us weakened at
some future
date when matters might come to a crisis
despite all our effort to avoid it. Patience, hard common
sense and the
genius which knows how to deal with men
and nations through long spans of time are what will
count, just as it has counted since time began. A "bold"
or
"imaginative" program which has little or nothing else
the rest of the world. It is world

Marshall

Thursday, December 1,
1955

.

$552 million and

for whose
good will the East and the West are contending.
Let us not forget that this is inevitably going to be
a
long, long struggle, the Kremlin and associates against

problems of the day.

.

account with the U. S.

misery among the hordes

to relieve want and

See It
We

of this country

we

.

mated

to sell in undeveloped lands, but the point is
can not save the day by undertaking overnight

not be easy

that

I

and Financial Chronicle

The Commercial

(2332)

to

a

also

say

any

roads only were responsible
10^
major developments in my coun¬

try, I would hasten to correct 1 •
Waterways,
highways,
airw:ay
and

pipelines all have

part in progress and
to have

a

played the

will contl,vL

most necessary

functi

powerful ini
ence.
Indeed, it is the rapl
vances
in
techniques
oi ot
forms of transportation that se
and

to

•

increasingly

the degree 01
approaching realistica
railways.

-

emphasize

gency for

the plight of the

This basic and common

of which
the

I

railroad

great,

relates 0
t is
must opeia e

speak, as it
industry,

service

still

•

1

problem

is that

Number 5486

182

Volume

.,

.

The Commercial and
Financial Chronicle

(2333)
under outmoded codes of regula¬

ket

consists

of

two main

catego¬

instances laid down ries
a
competitive area and a
century ago, at a time when non-competitive area.
the railways had a virtual monop¬
First let us consider
the com¬
oly in land transportation.
The petitive area. This consists of the
essence
of
the approach then large and
increasing volume of
adapted-was that intervention and traffic which no
tion, in many

half

regulation

detailed

would

be

a

longer is exclu¬
available to the railways.

sively
^

substitute for the missing element
of competition.
Time and tech¬

have combined, however,
to
supply that missing element
and railways today are subjected
nology

increasing and direct competi¬
tive pressures from all types of

That

is

to

say for all practical
purposes, the character and nature
of the traffic as
well as its loca¬

tion

is

such

complete

that the

freedom

shipper has

in

his

choice

to

of

carriers.

able to meet his
requirements and
his price.
He is free to
bargain

Regulations
of railroad

cover

activity.

phase

every

They consti¬

tute a curb on managerial decision

but,

important, they are
well. Their cumulative

more

costly

as

effect

epitomizes

philosophy of

a

control in which there is restraint
first and management discretion

Their

second.

crippling effect,
is to be found in the
of freight rate making.

however,
field

In the repetitious

debate which

inevitably surrounds such

the

lem,

clouded.

time
the

to

a

respect,

port and to select that which he
as most effective
for his

regards

But

purpose.

is

free

to

not

are

while

the

choose,

free

to

the

shipper
railways

determine

the

service

was

designed
In this

of

the

industry has been
given in Canada, and again in the
of the Presidential

Advisory Committee on Transport
Policy and Organization under the

chairmanship of your Secretary of
Commerce, Mr. Sinclair Weeks. It
time

be

patently

found

is

to

ky regulation

?/?

flicting

views

of

all

exist, then

can the con-

against railway

per

nated

that

so

dividual

be

will

be

service

the

nor

charged, but

rates

to

enmeshed

are

be

in

a

or

and

and that this will in due

area

course

whole

a

and

host

so

produces

of

on,

well

as

conditions

and

such

volume

appropriate

of

rail

will

as

enlarge substanability of the railway

of

tially the
implicit in the definition industry to
carry the burden of
railways as a "common car¬ that traffic which continues to be
rier." Such stipulations cannot
be rate regulated in the public inimposed effectively upon compet¬ terest. When
railways are able to
ing forms of transport so that I quote the price for their
services
service

of

find

it

difficult

to

understand

why the railways, like their com¬
petitors, should not be permitted

and

set

nition

the

in

service

conditions

terms

of

of

for

full

a

that

recog-

the

competing facilities
to offer or withhold service
and, available to shippers, then the best
if offered, to set a market
instrument of transportation will
price
dictated
purely and objectively win out in the race. The natural
from the point of view of costs
advantages which exist in each
and
quality
and
conditions
of transport medium will
of type
service

made

carriers.

available

The

by

railway

other

industry

into full play and the ship¬

come

will

per

benefit

most pay market prices for its

re¬

available

presently constituted is inconsist¬

quirements,

the

market price for its product.

having

tive

ent

through

clear

that

with

and

the

the

control

trends

system

of

the

that the rationale of

as

times

regula¬

tion—a condition of
monopoly—
steadily is being eroded.
So long as railways were
prac¬
tically the only media of land

transport, the revenue slack re¬
sulting from the carriage of low-

but

is

action within
free market

the

confines of the
where

area

vide realistic competition and
give

shippers
tain

no

the lowest price.

because

the

now intensely
competitive, and highway carriers
set a rate
ceiling beyond which it
would
not
be
practical for the
railways to go. Complicating the

opportunity to ob¬
transportation
service

best

suited to

rate

structure

which

has

many commodities, even though
the sanction for such rates has

ceased

fact,

to

exist.

As

matter

a

economists

some

in

of

Canada

estimate that 50% of all freight is
carried below
the
average
rev¬
for

enue

all

traffic, 25%

at

cost

and the remainder

at a profit. In
days when railways did have
monopoly, somehow they man¬

the
a

aged to meet
from

this

their

small

over-all

profitable business. But

peting carriers
at

this

and the

with

costs

percentage

chipping

are

segment

of

railways

are so

regulation

away

business

the

bound

that

of

com¬

now

they

are

practically helpless to do anything
about
sult

it.

of

The

this

appreciated

discussed

merely
ways
is

because

as

that

if

the

new

it

seldom

is

usually

by

force.

Railways Have

forms

rail¬

of

a

consequence

of

un¬

realistic regulation in the field of

railway

freight

rates,

the

com¬

munity

as a whole is paying more
transportation service than
is
necessary and many shippers
are
deprived of an opportunity to

for its

get

the service which best suits
their needs in terms of cost and

quality.

Let

if I

can

strip

away some of the detail and

some

of

me

see

category

bewildering technicalities
of the
freight rate structure and
expose plainly
the point I am
trying to make.
the

standpoint

of

railway, the transportation




It

from
or

where

consists

traffic

of

where

circumstances

free¬

that

by

such

class

of

reason

distance

as

markets, tremendous weight
bulk, only the rail¬
are capable of providing an

enormous

ways

effective

transport service. Usu¬
ally the products I have in mind

effec¬

produce.

Moreover, each

form

of transport will then have
compelling incentive to strive

a

for ways and means of

improving
service as well as price, and this
always to the advantage of the
Now

of

all

over

about

this, I admit, is a
simplified statement

a

most complicated problem
subject of transportation is
as
complex as civilization

about
itself.

-

it does, I hope, intro¬
provocative note into the

But

duce

a

surrounding

processes

It has seemed to

discussion

often

me

has

that too

produced

little but heated attack and

very

counter-attack

between

conflict¬

without much con¬
structive suggestion as to how the
admittedly
confused
situation
might be cleared up — how the
rules of the game may be revised
so as to be basically fair to all.
I
do not suggest that the present
could

or

should

be

would

suffer.

stances

the

public

interest

such

circum¬

In

railways enjoy what

described

be

can

the

ways

as

"functional

a

monopoly" and I concede the need
for continued

this

ber

regulation. Remem¬

nothing

functional

to

do

monopoly has

of

absence

or

with

the

presence

other

forms

of

overnight.

changed

But if an
objective could be set and if some
of

principles could be recog¬

nized, I

am

confident that a much
would de¬

atmosphere

healthier

velop and that the North Ameri¬
can
genius for realistic adjustment to

transport.
traffic
and

the
mar¬

Indeed,

will

both types

co-exist

transport

even

commodity

may

in

of

all

the

of

under

areas

same

some

cir¬

facts.^ri^tI hope the tore out

At all events

cumstances have to be

functional

a

others

as

regarded as
monopoly
and
in

free market

a

Flour, for example,
lutely dependent

operation.

may

upon

be abso¬

rail trans¬

portation when its market is
thousands
may
a

of

miles

distant

some

but

be optional when within say

hundred miles.

movements which

In the range of
are

that through

being

within

the

their widespread inwill be stimulated

Plans f°r the sale of

total

a

of

bonds by the Salt
?ive,r (Arizona) Project Agricultural

Improvement

District,

and

Power

announced Nov.

were

29

by Victor I. Corbell, President of
the Project.
At the same time,
Mr.

Corbell

announced

the

ap-

pointment of the firm of Wainwright & Ramsey, Inc., New York
City, consultants on municipal finance,

consultant

as

to

the

Salt

Tonight,
touched

on

gentlemen,
I
many
things

about

determined

Canada, its progress, its prospects

functional

of its prob¬
lems—its great and enduring part¬
the

future,

some

the

f

o

t h

e

since

1947,

becomes
Chairman
o f

the

Board

of

Directors.

Company offic

i

1s

a

said

these
took

the

place
annual

rectors

sale

toward

this

business

cost

of

construction

two

100,000 kilowatt plants, which
will ultimately add to the Salt
new

River Power District's firm
power
sources and will
aid the Project
in meeting the

bonds

new

He has been

to

area

means

in

1947

as

his

Executive

Director.

and

In

present office

Mr.

Anderson

The

Piedmont

holds a
directorship in
Aviation, Inc., WinstonAnvil Brand, Inc., High

be

gation bonds, Mr. Corbell said.
will

securities

supported by Salem,
electricity, Point, Carolina Wholesale Florists,
being general obli¬ Inc., Sanford, and Superior Cable

addition to

Bonds

serving

Vice-President

from sales of

revenues

in

will

its

over

the company which is now
Carolina
Securities Corporation.

be

marketed

Corporation,

the

as

firm

he

is

Hickory,

also

of which
Vice-President.

a

arises, and the
phase of the financing is
expected to get under way shortly

Mr.

after

Chairman of District No. 11 of the
National Association of Securities

need

for

funds

initial

a

the

turn

total of

will

at

sold.
of

This

bonds

special

a

when

year

Salt

particular
authorized

was

shareholder

Nov. 30,

on

the

$11,000,000 of the bonds

be

amount

held

of

election

Anderson is

Committee, and has

served

Dealers, and President of the

as

Ral¬

eigh-Durham Bond Club. He or¬
ganized and was the first Presi¬
dent

1954.

Secretary of the

North Carolina Securities Adviso¬
ry

of

the

Securities

Dealers of

the Carolinas.

River

Project,

which

Other

officers, all re-elected,
Kipp, Charlotte, C. F.
Water Users' Association, covers Hazelwood, NewXork> G. H. Rosser, Durham, S. J. Steele and J. B.
a
large area in Central Arizona
Vaden, Raleigh — Vice-President;
and surrounds the City of Phoenix.
G.
C.
Fruitt, Rockingham, and
Since its beginning in 1903 as the
Jack W. Noneman, New Bern—
first multiple
purpose
reclama¬ Assistant
Vice-President;
J.
P.
tion project to be authorized un¬
Abernethy,
Raleigh — Secretary
der
the
Hansbrough-Newlands and
Treasurer; C. F. Crutchfield—
Act, the success of the Salt River
Raleigh, Assistant Secretary.
Project has resulted in many other
Carolina Securities'
headquar¬
ventures in reclamation through¬
embraces

well

the

out

Power

the

as

the

Salt

District

River

C.

are:

ters

West

being

patterned

along similar lines.
Electric

as

office

Building,

is

purchased and sold in three

coun-

ton

Building,

Salt

River

Power

District,

while the Salt River Valley Water
Users' Association provides water
for the

the

Insurance

N.

C.,

with

Charlotte, N. C.

ties, Maricopa, Gila and Pinal, by
the

in

Raleigh,

branch offices at 40 Wall Street,
generated, New York, N. Y. and in the Johns¬

is

power

S.

Valley

irrigation of 240,000 acres
in the Salt River Valley.

Form Standard Sees.

Corp.

Standard Securities Corporation
has been formed with offices'at

25 Broad Street, New York
Cityf^
growth of to engage in a securities business.
population in the territory served Officers are Roland S. Feigus,
Theodore
by the Salt River Project is re- President;
Freedman,
fleeted in
a
steadily increasing Secretary and Treasurer; and
number of electric customers and Stanley
Raskin, Vice-President.
of

land

The

continuing, rapid

expanding agricultural operations,
ajj_time
p0wer

high

requirecj

in

the

produce and purchase
total

of

sales

of

District

to

a new

1,116,402,345

Mr.

kilowatt

Customers

Two With Wm. R. Staats
(Special to The Financial Chronicle)

SAN
ward

FRANCISCO,
Smithers

H.

liams have

amounted

liam

3g 881i

15%

over

than the 34,546 served in

iy^,

_

The

,

,

TT

Water

increasing

close

year.

of

The

to

70,953 at
76,669 last

number

of individual

water deliveries totaled

end

of

1954,

Nina

Wil¬

joined the staff of Wil¬

Staats

&

Co.,

Sutter

Ill

...

A

from

1953

R.

Calif.—Ed¬

and

Street.

Association

Users

with

& Low.

served at the close o£ last year
to

formerly

was

peak

hours of energy during 1954. This
was an
increase of 7% over the

requirements for 1953.

Feigus

Milton Blauner & Co. and Jacobs

454,993 at

compared

With Sutro & Co.
(Special to The Financial Chronicle)

SAN
J.

ter
&

FRANCISCO, Calif.—Wal¬
Gilbert

Co.,

407

members
San

of

is

with

now

Montgomery
the

Francisco

New

Stock

Sutro

Street,

York

and

Exchanges.

with

425,228 at the close of 1953.

Now With Walston
(Special to The Financial Chronicle)

Joins Sutro Staff
(Special to The Financial Chronicle)

SAN JOSE, Calif—William H.
I Maderis is now with Sutro & Co.,
attempted to 35 North First Street.

SAN

FRANCISCO,

James L. Tarne is
ston &

now

Calif.—
with Wal¬

Co., 26 Montgomery Street,
of

the

San Francisco

no

with

by

rapidly, increasing addition

demands for electricity in the
it serves in Central Arizona.

when
taken

was

have

by

recently at
Raleigh office. Mr.

company

the

balances

di¬

and

held

Anderson became associated
Kirchofer &

members

and

Anderson

stockholders

meeting

the company's

nership with the United States.

checks

E.

at

monopoly control of the railways,
natural

Glenn

changes

of

the

have

Ree-

with

the

the

spective countries.

ed

Net proceeds from the
the bonds will be
applied

industry from Con¬
tributing its full share towards
the economic welfare of our re¬
railway

connect¬

ecessor

counts

the

bals,

firm.

Arnold, Inc., a pred¬
firm, in 1934.
He
was
of Vice-President
and
Director
of

River Project,

moving the shackles that prevent

positive interest in the need for
action aimed at re-

W.

ident

constructive

a

there

t

Fred

firm

also reported substantial gains in
operations during 1954, with the
total number of irrkntmn ar^ irrigation ac

fluence

for

as

some

of the Economic
food for thought and

and

1933 and Pres¬

!to memters
Club

or en

Arizona District.

regulatory framework.
set

York

invest¬

named Consultant to

ing interests

environment

C.,

New

business since

The

most

for the

Project to

N.

Wainwright & Ramsey

consumer.

I recognize
must have cheap transportation, that much patient exploration is
failing which their production and required and much expedient acdelivery to market is not eco¬ tion may have to be taken in recnomically possible and will not ognition of vested interests which
take place with the result that in have grown ,up under the present

the

From

traffic

another

by the railways
not yet be in the public in¬

terest.
of

of

at

action

of

may

can

field.

look

us

most

com¬

The real point, however,
as

let

the

ope of the most important eco¬
nomic problems in the domestic

a

Monopoly
Now

dom

tions

thinking

Where

were

the

at

en¬

re¬

is

situation

complaint

a

about

petition.

economic

true

condition

an

competition would
dictate rate making and would of
itself be an effective
regulatory

many
up

and

In such

vironment,

evolved

on

their needs

him

to

transportation service at the
lowest price which market condi¬

the

the

matter further is the fact that the

has developed into
something akin
to a vested interest in low rates

unfair

no

advantage would be possible but
only permit the railways to pro¬

by increased revenues from
high-value commodities.
This is

longer possible
high-rated traffic is

For

emphasis I repeat that I am re¬
ferring so far only to freedom of

value commodities could be made
up

denied

E. An¬
derson has been elected
President
of
Carolina
Securities

Corpora¬

Indus- $21,000,000 of

give freedom of action to the railways in the free competitive mar-

RALEIGH, N. C.-Glenn

Raleigh,
Cnarlotte,

sub-

even

in
respect of railway
that the railway
try could not survive unless it was
enabled to
support this burden

ket

our na-

Sell $21 Million Bonds

course

t

Carolina Securities

will find

you

understanding of

Salt River

equity and

appreciated, of

n

AltOCrSOII PffiSi flf

I

tion,

marginal
costs

neighbor.

a

tion and its people,

in¬

they have to offer nor
price tag they put upon it.from other sources.
That is ex¬
Railways are not free to deter¬
actly the point of my
suggestion,
mine the nature and
content of
namely that the best source is to
the

better

a

be co-ordi¬

—

and

marginal

to

nature

a strong family reand from that derive

semblance,

that by definition
rates which are
permissible in this regulated area
will

of

earnestly hope that

the public interest
preserved.
It will be

portrait

but

concerned—

there

fairness

a

on the canvas

commodity
against
commodity,
shipper against shipper and
ship¬

as

the

railroad

this

monopoly

traffic

recognition

notable report

a

profitable

however,

by

trans¬

of

^om^etltlon- what I
that when
functional

is

that

premise

Official

must

of

author

missing

mparf^k
mean

inatory rates"

changes in modes and patterns of
transportation and their effect on
the

modes

market are paint the whole picture,
that present something in the
con-

f'PPerS t°
author ity must
tinue to substitute for the

rates," "fair rates," "non-discrim¬

the
position
taken by the railroads is unassail¬
able.

several

re«u?atorv
regulatory

attempts

time

.monopoly situation.

a

between

regulatory framework which
stipulates such criteria as "just

structure of control
for

transportation service best

example, there have

For

attack

to

the

prob¬
sometimes
are

issues

from

been

ni,thoe„ine,C,0m,Petii-ve

—

a

29

New

York

and

Stock Exchanges.

30

The Commercial and Financial Chronicler.

(2334)

inventory accumulation will

share dividend is admittedly large since the $2.9
serial maturities of equipment
trust certificates is covered by depreciation allowance by a con¬
siderable margin.
While it is possible, the payment of an extra
would seem to run counter to any plans to acquire the publicly
held stock on the most favorable terms, if such plans are. being
the $6 per

over

=

By GERALD D. McKEEVER

for at least six
months to
maximum of perhaps 15
months
before the reverse
process of in,
a

ventory liquidation begins.
inventories

"

'

1

♦

'

'

exert

Pittsburgh & Lake Erie

Continued

from first

page

revenues

derived from traffic

are

13% to 14% from

ore,

scrap

Economic Developments
Point to a Crest Ahead

and flux, and

20% from iron and steel products.

some

The outlook for

high level of operation of the steel industry
for the next year or more thus points to the continued prosperity
of the Pittsburgh & Lake Erie, although it is quite
possible that
earnings may not come up to the $13.50 per share estimated for
1955.

be made

current round of wage

increases which are likely to have particu¬
Pittsburgh & Lake Erie because of its high wage
ratio which latter is largely ascribed to the road's character as a
"switching" company and to the cost of maintaining its extensive

lar impact on the

fleet.

car

has

As will be explained later, the Pittsburgh & Lake Erie
heavy ownership of freight car equipment and is a rentor

a

balance.

on

The

the

Pittsburgh & Lake Erie is aptly
geared to its circumstances which are subject to wide fluctuations.
Long-term debt, consisting almost entirely of equipment trust cer¬
tificates, amounts to just over 22% ob combined debt and equity
capital, taken either at book or market values. Fixed charges
accordingly are equivalent to only a little over 2% of average
for the past five years.

revenues

$16 million in

Thus despite the drop of some
decline of about 32%.%, and in

revenues in 1954, a
spite of the road's inability, or possibly its unwillingness in the

case of maintenance, to reduce expenses in equal
proportion, earn¬
ings amounted to $9.86 per share and the $6 dividend rate was

maintained.
was also made possible because of the
large contribution
earnings made by car rentals which provided a net balance of
$10 million in favor of the road in 1954. Like most coal

over

carriers, the Pittsburgh & Lake Erie finds it expedient and profit¬
able to have ample car ownership and it has
traditionally made
a net profit on cars interchanged with other roads.
For years this
road had financed the acquisition of its rolling stock
internally
out

of

its

own

earnings and

was

debt-free roads, not counting

debt.

company

an

one of the country's very few
inconsiderable amount of inter¬

But the cost of equipment mounted fast after the

the

and

out-of-pocket financing of equipment ate severely
into the road's working capital.
The result was a change in policy, and in May of 1950 the
Pittsburgh & Lake Erie sold its first equipment trust issiife and in

war

"the

amount

of

riiillion. Five additional issues aggregating
$26,770,000 were placed in the succeeding two years, but the total
has since been reduced to about $25 million by annual retirement
of just over $2.9
million, or roughly 8% of the aggregate of the
original amounts issued.
The

$10

road's total
the

account

very

Pennsylvania

RR.

debt, it should be noted, does not take into
contingent liability this road has with the

and

the

Baltimore

&

Ohio

in

respect

of

$9,-

885,000 Monongahela Ry. first 3J/4S due in 1966 in the joint and
several guarantee of principal and interest, or its
$600,000 con¬
tingent liability as the co-indorser with the Pennsylvania RR. of a
$1,200,000 note of the Youngstown & Southern Ry. Co. Both of
these roads

acquired from the Pittsburgh Consolidation Coal
Co. jointly with the Pennsylvania RR. and Baltimore & Ohio.
were

The Pittsburgh & Lake Erie, controlled
by the New York Cen¬
tral

through its ownership of 50.2% of the capital stock of the
P & LE, operates about 221 miles of road
extending from Connelsville, Pa. on the south where it connects with the Pennsylvania
RR., B & O and Western Maryland, to Youngstown, Ohio, via

Pittsburgh and McKeesport. Another line extends southward from
McKeesport to Brownsville, Pa., where it connects with the jointly
controlled

those of
P

&

LE

Monongahela.

These lines from

Pittsburgh south are
the Pittsburgh, McKeesport &
Youghiogheny which the
owns jointly with the New York
Central and operates

under lease.

lose with such

Its

own

line extends north and west from

Pittsburgh

junction at Youngstown.
The traffic density of the Pittsburgh & Lake
Erie is the
heaviest of any of the Class I roads. This is
explained in part by
the heavy tonnage character of the greatest
part of its traffic: coal,
iron and steel, etc. It is more notable that its revenue
density, or
revenue per mile of
road, is also the highest in the country, and
the same is true of its net earnings
per mile.
The Pittsburgh &
Lake Erie is thus a compact and efficient
operation, and its stock
yielding about 5.7% at the current price of 106, holds a large
measure of investment
appeal on the strength of these merits alone.
There is a further angle, however.
The Pittsburgh & Lake
Erie is a highly important adjunct to the New York
Central sys¬
tem, providing it with access to the whole Pittsburgh
steel-pro¬
ducing area and also feeding it with important coal originations. It
the

avowed

policy of the new management of the New York
Central to simplify its corporate structure
by acquiring a sufficient
proportion of the equity of subsidiary roads to consolidate finan¬
cially. This has already been done in the case of the Boston &
Albany and two of its tributary lines through an exchange of New
York Central bonds collateralized in
part by the stocks of the sub¬

sidiary roads in question, and

a

similar proposal has been indicated

fcr holders of Beech Creek and Peoria & Eastern
stocks.

However, none of these stocks have the investment character
Pittsburgh & Lake Erie, and in case the Central should
make an exchange offer for the latter stock
to acquire all or the
or

merit of

greater part of the almost 50% that is publicly
held, it will prob¬
ably have to be a most attractive offer to get action. This
possi¬
bility, in addition to the sound quality of Pittsburgh & Lake Erie
stock, is believed to be the principal reason for its
selling at a level
to yield less than
Chesapeake & Ohio or Norfolk & Western com¬
mon
stocks, for instance.
It

tion of

seems
an

really can't
expanding econ¬

you

an

No

is

one

optimistic about

more

underlying business prospects
than I, but I must admit I get
a
little uneasy these days when
I hear some comments along these
lines.

The danger is that under¬
growth is being taken for

lying

less likely that the current

extra dividend




price reflects the expecta¬
although the margin of available income

indefinite

almost

the

success

perhaps

markets,
and products. In my opinion, this
simply is not true, and certainly
if

have

we

in

continuation

mind

of

anything like present products
present methods of manu¬
facturing and distribution. There
and

is

for

reason

if

concern

allow

we

ourselves to

rely too heavily upon
and
neglect
problems of short-run stability.

long-run
As

growth

much

word

in

as

we

"growth"

all

can

with

dissociate

never

"change."

anticipating

business

among

1958

—than

there

and

is

far

before?

ever

This

only

can

conditions ahead which will

mean

far

different

from

those

sug¬

gested by the smooth upward tilt
of
"growth" curves now being

prominently
walls

of

in

and

displayed

hundreds

of

the

on

directors'

many

rooms

attractively

prepared reports for management.

Yes,

growth

and

change

have

become the key words in apprais¬
ing what lies ahead.
There
is

nothing very new about them, but
I commend them to
you. In

tween

in

year

marily

which

moderate

lieve, much

we

are

here,

interested

we

but, I
change.

more

be¬

sales; (2) general
will more up

than

1

from

2%

or

(4)
will

forecast

standard

clearly

If

the

standard

initial

forecast

than

accurate

more

is

no

Very likely

year.

well

are

account¬

your

their way toward

on

If,

accurate

sumer

however,
be

forecast proves to

during
two

1956
\

for

the

general

wider

amplitude

past

direction

literacy

greater

and

to

a

confidence in the economic

future.

Nevertheless,

I am not
willing to accept this forecast,
at least at this point. For, in my
view, no forecast is worthy of
acceptance until it has met three

crucial

tests:

(1)

it

Is

economi¬

cally sound?
(2). Is it politically
possible?
(3) Is it psychologi¬
cally feasible? Let's explore the
1956

horizon

three

further

with

these

tests in mind.

Developments Point to

A

Crest

instances,
have

been

submitted and perhaps even filed.

Nevertheless, there
point

in

taking

general

is still

another

we

economic

forces

from

sense

often

can

indication

economic

some

look

at

prospects.

opinion forecasting

can

In

never

be successful unless it is
accepted

continuous

a

there

is

sifting

value

of

aimed at

process.

in

forecast

Hence,

systematic

a

information

in

any

political

and

obtain

rough

some

whether

the

period

a

of

or

such

there

is

economic

good

grounds,

reason

to

now

an¬

ticipate that general business will
reach

crest within the next 6-12

a

months.

The

key

factors

tributing to this outlook
to

be

inventories

con¬

likely
possibly

are

and

credit.
We all know the

In

oper¬

view

of

today's meeting be¬

scheduled

somewhat

beyond

the mid-point of the fall and
early
winter
forecasting season, it
would seem
appropriate that we

begin

analysis

our

with

a

brief

of the most commonly
accepted view of 1956 prospects
held across business at the
present
summary

time.

I

like

"standard"

to

call

forecast

this

of

the

general

business.

Moderately
A

review

published

of

and

casts

made

veals

the

in

familiar:

sure

(1)

weeks

re¬

consensus,

you are gen¬

1956

as

a

—imposed

the for¬

by

limitations

Federal

Reserve

and

Treasury policies—also seem
likely to be in force during at
least part of 1956, but for rea¬
sons
to be given later, there is
room

to

be

major

a

doubt

that

credit

limiting

will

factor

on

business next year.
Nevertheless,
the outlook is for credit exten¬
sion to be at a reduced rate in
1956

with

attendant

implications

for general business.

ing

consumer purchas¬
during the coming year
improve slightly because

power

somewhat higher average em¬

ployment

and

prospects for

a

will have somewhat

accumulated, there is
expansion

to

being

two-fold

a

meet

immediate

consumption as well as to pro¬
vide supplies for store shelves and
warehouses.

periods

of

there is

Similarly,
during
inventory liquidation

marked

a

adverse impact
business
because

general

upon

orders
well

and

below

output
current

—which

itself

in

to

order

may

use

up

reduced

are

recent

largely psychological question
concerning the willingness of in¬
dividuals
their

and

families

available

funds

certain

but

been major

business

stimulants to general

during

the

among

finished

perience

some

of

modest

has taken

than

goods.

suggests

past

year.

is
expansion is in
sight for either industry, and in
all probability some modest
(i. e.,
5-10%) decline will be evident
by the fall of 1956.
Experience
that

opinion

now

further

no

plus careful analysis shows, how¬
ever, that we never want to un¬
derestimate either the ingenuity

interest
better
no

in

of

American

in

families

housing.

In my judgment,
decline is in prospect

major
either

case

industry to de¬
the mounting

cars, or

of

these

fields.

the

In

of home

building I feel quite
confident that an expansion in
"fix-up" (i. e., repair and mod¬

ernization)
go

long

a

work
way

next

whatever reduction

building

of

entirely

will

year

toward

offsetting
in the

occurs

new

dwell¬

Many other
economic
could be mentioned which will U

quantities

among

materials and goodsrather

year.

is well recognized that auto¬
mobiles and new housing have

ings.

falling—.

predominantly

raw

in-process

spend

be

inventory accumulation
place,

to

next

consumption

.

months

greater after¬

tax income next
year, but we will
have to defer for the moment the

sign and sell

are

plus

rates

wage

tax reduction. The

consuming public almost certainly

of the automobile

a

While inventories

ness.

In

hundred
unpublished fore¬

with which I'm

erally

Optimistic

recent

of

.

several

following

influence

goods available from earlier pro¬
duction.

The "Standard Forecast" Is

in

Some general credit
•

change of in¬

and

and

outstanding

loss

disproportion¬

ventories upon the course of busi¬

planning

credit

distinct

a

It

shortages

ate

purposes.

up

Needless to say,
of

The best informed

On

checking and modifying

related

catch

ward movement of the
economy.

nation

(as
required)
whatever
actual
forecast is being used for business

ating

credit.

consumer
means

of

separate

excessive
supply in relation to
prospective buying power, or per¬
haps something in between.

some

reports

to

obligations and

leveling in the volume

mere

should

Ahead

Admittedly it is impossible to

projections.

In

promise

credit

re¬

con¬

The level of

Economic

faces

forecast

period

leveling

some

outstanding

on

consumer

the

longer-

in

suggests

by mid-1956 when

debt

allow¬

economic

rising

rise

1955

temporarily slow down the strong
expansionary effect of mounting

Frankly, I
improved ac-^
of the standard forecast is
to

crest
occur

"eatching-up"

new

in

some

variation

a

will

sharp
in

Very likely

occur

with

recent

tribute

a

payments

change.

of

the

curacy

range

will

by the forecast should

accepted, but with

believe

a

during

as

the

years,

suggested

as

The

credit

least

ahead.

years,

refining sales forecasts into profit
final

at

business

year.

consumer

the
safest

bet would be to take the

view.

general

next

during

Accordingly, by reasonable study

of the new

in

con¬

provide further

support for the view that

the
opposite
the standard

postwar

credit also

sumer

accurate is
likely to be?

how

But,

the standard forecast

(2)
businesses

Expected developments in

bespeaks moderate growth and
the promise of
some
important

changes.

industry,

some

inven¬
tories, and (3) a well sustained
high level of final consumption.

occur.

The

across

inability 'of

to obtain the necessary
additional
credit required
to build

inflation

further

little

very

tainly for the first half

planning business operations
for 1956 already have made their

inventories
the

level;
(3)
a
period of
leveling or fractional decline will
become evident by mid-1956; and

forecast of general business—cer¬

with

ing

inventories

occurring be¬

June.

through next year in view
(1) the many badly depleted

of:

the

psychological influences affecting
general
business.
Nevertheless,
dominant economic developments
can
usually be traced to basic
supply and demand relationships.

as

April and

very

probably

more

strict

By Nov. 16, I suspect that most
people in this audience concerned

business

present

pri¬
will

growth

better

slightly

a

and

output

business
no

1956,

my

in

well

ance

willingness to accept
change—indeed to demand change

ants

change

with the real "test"

slightv:Jiquidatte)-yv:ilhr^Qntinue

from

dispute that

greater

see

overwhelmingly ji; s.tress this

expected

than

be

general

for

year

be

executives

today

consumers

the

a

slow-up in general busi,
during the- second half of

in

must

we

"growth"
will

Who

the

use

confidence

pointing to the future,

be

even

My own
feeling is that inventory accumu¬
lation
(or no more
than

will

whole

of

individual industries,

to the New York Central

is

time

omy.

This

to

in

granted, as literally underwriting

capitalization of

»

1955, and hence set a' new record

because

for the effect of the

be

upon the ecoii,

Forecasters

ness

a

Some allowance will have to

or

distinct

with the production of iron and steel, viz.: 28% from soft coal and

coke, 12% from iron

neutral

a

omy.

directly identified

Thus

to

cease

depressing force

a

The fortunes of the Pittsburgh & Lake Erie are closely tied to
the level of steel operations in the Pittsburgh district. Almost 75%
of the road's

should

stimulating factor some time
after
the spring of 1956 and
thereafter

entertained at all.

=

pro,

ceed

million requirement for the annual

Railroad Securities

Thursday, December 1, 1955

.

that

widely
Past

ex¬

current

—

fluence

the

business,
and

course

including

population

would

still

of
general
productivity

growth.

provide

little

however, for anticipating
marked
ness

In

in

upsurge
1956.

-

They
basis,

any

in general

new

busi¬

summary, looking at the eco¬
nomic forces likelv to ha at work

Number 5486

182

Volume

.

.

The Commercial

.

and Financial
Chronicle

(2335)

coming year there is
overwhelming evidence of great
near-term strength, but there are

feel

the

over

the

signs that further
expansion will be difficult to
achieve, especially beyond next
summer. The case for a crest in

general'

business

see

have

a

them

little

Accordingly,

or

and

no

ob¬

1956 should

fairly substantial

tax

principally for individuals,

cut,
com¬

ing la.e rather than
early in the
Congressional
sess.on;
an

next

economic

on

must

public raises

jection.

numerous

also

they

expanded

farm

support program;

strated

that

past records
often
provide very unreliable
guides to
human actions. As

tuture

attitudes

are

matters

today

toward

such

eral business situation until

as

housing needs, credit,
family size and

and

time in

mobility from
grounds, consequently, appears possibly moderately increased de¬
only a decade ago;
moreover, as
rather convincing. The case for a fense
expenditures, particu.arly in indicated
earlier, business plandownturn in 1956, however, rests light of increased tension
in the ning
currently is based upon far
heavily upon a period of marked Middle East;
certainly more high¬ more confidence in
the
longer
inventory liquidation together ways
and
public
works; very range outlook than at
an.y previwith distinctly
lower consumer probably some expansion
in ous time.
Again we can see the
and government buying.
In my health, education, and welfare
ac¬
imnortance of "change" in hnsi
opinion these are not very strong tivities of government; and ness
forecasting
prospects at the present time. prompt action in the
ne^f -forecasting.
"Momentum" thus best describes
results

the

question

Whether

source

of

.

found

be

source

strength

in

to

the

political

economics

Supports

"political
this is

field
to

as

Even if

important

an

na¬

ingful forecast of general business
careful

consideration

of

the probable impact of political
developments.. Actually most as¬
pects of economic life next year

will be clouded

or

colored by an¬

other Presidential nomination and

election

good

spectacle.

as

a

perity,"

There may be

in

reason,

1956

fact, to describe
of "political pros¬

year

which

at

means

least

in which politicians promise

and

promote

prosperity for all
(and probably prosperity
for
politicians
as
well).
This
"political
prosperity"
view
for
voters

haps

now

widely held and

to

even

per¬

somewhat greater

a

one

well

as

as

weeks

almost

there

uniform

political

extent

since the President's heart
attack in September.

to

seems

dismissal

of

be

the

economic significance of the Pres¬
ident's illness. I wonder whether
is

some

wise.

May there not be
important secondary

very

coming

health

While the power of government
influence the course of busi¬

ness

cannot

theless
cede

I

be

that

minimized,

not

am

the

never¬

willing to

national

con¬

economy

can
be guided
smoothly and ac¬
curately along a path of "balanced
boom"
by perfectly timed and

executed

actions

of

government.

To date at least I find little evi¬
dence that the so-called
compen¬

satory
more

principle
than

much

means

determined

efforts

to

support business during periods of
actual
any

or potential weakness while
fiscal surpluses seem destined

before

—even

they are actually
achieved—for tax cuts rather than
debt reduction.
I

do

not

minimize

job

any

the

which

has

in

re-election

have been factors

done

this

a

Federal

Administration

shifts

in

policies toward
ernment

direct gov¬

more

support to the economy?
developments in aid to

Recent

strong business up¬

which has taxed much in¬
dustrial capacity and placed
surge

upward pressures
It is very much

however, just

prices.
to question,
how long this re¬

straint

will

on

many

open

can

or

be

particularly in view
certainty
over
the
illness

and

campaign.
detect
cal
as

next

of

the

not

election

difficult

shades

of

concern—Democratic

Republican

these

days

made

in

well

as

Washington
plans are being
quarters

many

to

politi¬

in

—

and

un¬

President's

year's

is

It

varying

continued,

to

accurate to say that the

acceptable
many

minimum

economic

housing

politically

starts

levels

of

(e.g)
prices)

measures

and

farm

have moved up sharply in recent
years, and the political repercus¬
sions of almost
any rise in

ployment

are

unem¬

well-known.

Frankly, there

to

seems

with

no

escape from politically motivated
economic

practical

policies,
reason.

some

inflationary

Government
be

for

Most




a

very

politicians

implications.
likely to

action

is

forthcoming in direct relation

to

indication

is not

confidence-proof.

perience
time

should

shocks

could

because

This

remind

distress.

coming
what

or

....

caught

tamed,

that'the the
the

du ing

tne

is

better

to

well

as

individual

the

as

country

whole is far less certain.

a

election

during

he

vSIflhyerelsCeanyVre!
willing

1^56 will

such

to

today,

see a new, high,,

uncertainty and confusion.

Let's

briefly

the

set

stage—

Democratically

controlled
ConRepublican Administration

gress;
with

President

a

pected

to

win

previously

re-election

virtually
tablish
to

all

of

cause

the

of

debates

important

campaign

bills

efforts

be-

to

es-

—

"issues"

related

on

not

maneuvers

to

get "credit" for potentially populegislation (e. g., tax cuts);
a continuing business boom alter-

be

political
"vigorous,"
but probably defying either
label;
advancing wages and prices; scat-

said

the

about

of

changes in the at¬

business executives

public,

especially

President's illness?
to

and

since

This

the

leads

us

consideration of the psycho¬
logical
influences
upon
next
a

year's business prospects.

Confidence Dominates Near-Term

Thinking
Economists
are

they

as

in

more

common

at

and

behavior.

opinion, the psychological
at

work

least

adjustments

next

as

shortages

disappear and invenbuilt; tightrope walking
by monetary and credit authorities; later than usual nominating
are

highlighted
detail

to

the

oratory,
minute

unprecedented

by

most

televi-

conflicting interpretations; wavering security prices changing with
the political and economic headlines;
new
international
unrest

motivation

my

business

in

teams,

forces

in

"tired" and

sion coverage; conflicting polls cf
election prospects — or at least

human

be

tered

described

as

days
and as

these

try, individually
to anticipate changes

In

natively

debates

conventions ar.d campaign

and

psychologists
finding that they have more

and

lar

tories

r

year

will

fostered by the Communists while
American attention is focused on

important as more
strictly
economic
and
political
developments in shaping the
actual course of general business.

domestic political issues;
and
finally, the actual election results

The

—a

as

prospects are that business
confidence will weaken somewhat
the year unfolds

as

sumers

of

will show

becoming

their

to

that

con¬

increasing signs
choosey" in

"more

buying.

Anyone
the

knd

new

methods

is

familiar

currently
human

measure

with

available

motivations,

(?) President and

Past

sively
vive

experience
that
—

too

long

based

tion

at

ago

when forecasts

largely
that
as

an
an

least follow

tern

of

tionships.

upon

the

assump¬

individual
"economic

were

would

man"

or

fairly rigid pat¬
income-spending rela¬
a

The post-World War II

experience has thoroughly demon¬

the

conclu-

will

sur-

whatever

comments

to

in

relation

has been made from the days not

new

of

contrary.

the

foreign
But I

personally believe business planning may lose some of its present

their

Yet,

shows

nation

ordeal,

observers

vigor

marked
limitations.
considerable
advancement

our

this

intentions, and confidence knows
very

a

Congress.

outcome

who

purchases

changes

the
to

in

process,

the

in

direct

prospects

government

for

policies

affecting business operations,
earnings,
and
investments.
In
short, there seems to be a better
than

chance

even

shock

waves

heart attack

by mid-1956
and

bring

business

that

secondary

from the President's
may

become evident

or shortly thereafter
temporary slow-up in
expansion plans.
Such

a

lish

realistic product

goals and

our

and

market

lay careful plans

now

to

achieve them with due
regard
for the
many uncertainties which
very definitely will arise.

Well,
seems

that's
to

forecast.

my

meet

three

my

It

;

tests:

economically
sound,
politically
possible, and psychologically

feasible.

I'll

buy it.

Will you?

Blyth-Merrill Lynch
Group Offers MontanaDakota Utilities Pfd.

by

suggested

earlier,

jncreased
lower

as

incomes

taxeSi

and

the

out-

a

somewhat

Throughout

of next year credit

much

may be

ex"

pected to be a bit tighter than
durjng {be eariy months of 1955.
certainiy there is little pros¬

Bu^.

t

0£

£ons

reaBy tight credit pondiyeJr* • in- either

next

mortgages

general

or

tive preferred

consumer

financing.

stock

at

($100

par

share )f

per

Proceeds from the sale will be

and

resources,

income

applied

toward the payment
short-term bank loans,

of

amounting
to
approximately $6,500,000 as of
Dec. 1, 1955, incurred to
provide

temporary financing of the com¬
pany's 1955 construction program.
This

is expected to in¬
expenditures
of
approxi¬

program

volve

mately $13,000,000, including $9,000,000
and

of

natural

facilities

gas

$3,575,000 of electric facilities.

Montana-Dakota supplies natu¬
ral

and

gas

electric

Montana, North

service

in

and South Dakota

and

Heavy"debt

repayment

uies next year on

very

long and

race;

inherent

mention

ex-

But regardless of
any changes
in government policies —
already
made or in the
offing—what can

titude

substantial

*°o"tosil^tiTh^e^sposI
I-"drow 1956
jn
result of

worn

Presidential

a

particularly

next

to

„

public: (1) ade1uate financial

that

is^ftfbette7

confusion
contusion

year,

i

,

operations

principal—perhaps

Blyth & Co., Inc. and Merrill
°§mze that consumers as a group
do a^.least two-thirds of all the Lynch, Pierce, Fenner & Beane
spending in this country. Recent jointly headed a group offering
studies of consumer buying trends publicly yesterday (Nov. 30), 50,and intentions re-emphasize the 000 shares of Montana-Dakota
conditions necessary for sus- Utilities Co., 4.70% series cumula¬

As

Congressional

mean

x

a

bitter

hardly be questioned;

,

(includlng credit)

out

will

\i" '
s the greatest challenge to
eveLyone in business. We all rec-

theUSaveregeeXcTtirenegets gl* ^"0W 'S 3 "g°°d
in
whirl of political and

likely

can

it

concerned.

Here

any

,

impression
impiession

my
my

business

as

vpnr????

rr

ex-

at

come

t

np

that

us

far

as

are

Our

keep our perspec¬
coming year of "polit¬
ical
prosperity" will be to estab¬

-

,

—

unexpected ecopolitical developments,

economic

businesses
as

of

keeping

consumers react to all these economic and political developments

of

That such stimulation is

any

in

Qver-all prospects still seem
pretty solid. But we sail have to
answer the question
how will

the

in

stimulation

change in 1956

Nevertheless, the "shock"

cally speaking the country seems
nearing or entering a period
moderate

problems

managements

President's heart attack is
dramatic proof that our
economy

to be

behave
be

of

to be

seems

make without qualification
it is that

of

real

some

the boom in hand.

temporary

tive in the

as

of confidence and
pose

wave

bridge

rely
long-term growth to

upon

only—chance

reie-

a

to

successful

year.

think_

the
me

of political
developments
next year
might touch off

new

surface,
substantially re-

illustrate this point. Perhaps here
we
should conclude ,that politi¬

"do

something" to gain political
strength next year. I believe it is

now

stored.

unduly

result

late

t

r

W vot n^,. It theie is
tinal
any pr
diction whicn I
am

a

of

in business confidence

resurge
a

a

be

farmers and perhaps in
monetary
and
credit
areas
as
well
may

Reserve

year in exercising
credit restraint in

monetary and
the face of

to

in

contributing to

certain

.

than

insure

our

implications

re¬

spots in demand for
existing
products.
We
should
not

and
re-election
of
President Eisenhower. In
fact, a

increasing possi-

.

seek

the
.

coming

more on our own.

soft

nomination

lealth dramatically took
ri-vn
business and espem?i+j nvi^nfW
nffinf
i ??t "otlc(;ab!y
nnhit theAcbUymg„ a UaUdK °f the
nrm+'idnnno
suggested, business
confidence, at least on the

"as

not

Let,s not rule out in

ing
°

,

well

will

1956

over

experienced

as

insurance

current year,

once

abrupt change in the President's
health and the strong
probability
he

to

throughout

be

opportunities
will
be
larger than ever, but
selling will
have to be more skillful
and new
products may well be needed

Present firm plans

penditures

we've

Market

commitments for

during the

earnings

as

cently. We'll

new plants
equipment pretty definitely
assure
higher levels or such ex-

confidence

high

1957.

and

months

some-

lnnLmhel avfudfen+ bur£j Well, this seems to add up
pessimism
News
oTthe Pmsi again t0 m0re growth and more
Lnt.?

"it's
ts

that

agree

at

sales

and

and

heart

stood

too

with

and

of business and

fact,

almost

tion '

that

In

months?

you

commendable

very

the

want

way

seemed

the

Would

President's

confidence

sustained,

nomic

over

normal

near

the

high,

will

-

to

new

other

achieve

to

consumer

repercussions at work despite ris¬
ing confidence that the President

a

year

1956 is

and

Prior

attack, barometers

th

recent

this

tional election year, it would still
not be possible to frame a mean¬

without

public

major shock to the nation and the
world:
By way of contrast, in

of

descriptive title of

not

were

the

Several references
already have
been, made
to
the
President's
heart attack, which came
as

Certainly;

what's actually involved.
1956

mone¬

a

the

economy."

-

more

a

in

reversal

from

economic

to

referred

was

distress.

circles.

Business Ahead
ago

any

of the most gnaw¬
uncertainties of the hours in

ing

■

years

such

business is

Political Developments Indicate

Some

monetary
sign of

at

economic

response

;

Further

field

tary and credit policy will
bring
an
equally prompt expansionary

help the present forward momen¬
tum from
faltering before 1956
comes
to
a
close.
Might this
arena?

credit

significant

principal

the

economic

and

economic

The

concerns

new

some

current

work.

at

forces

of

easily accel-

but
any change in capital expenditure
plans could hardly affect the
gen-

only to remind ourselves
radically different consumer

how

could

occurrence

inventory liquidation
moderately retard business,

proof,

need

we

an

erate

31

retard

1955

some

sched-

purchases

new

buying,

Wyoming. During 1954, total
operating revenues were derived
56% from gas sales, 42% from the

sale

of

electricity

and

2%

from

particularly of "big ticket" items

other

for

ended Aug. 31, 1955, the
company
reported net income of $2,993,413

certain

tinued

0f

income
0pen

families.

movement

bers

The

of

families

con-

large
into

num-

higher

brackets,

up

however, will
new market op-

many

portunities. There is unmistakable
evidence

that families

tions

the

of

nation

in

all

have

sec-

found

postwar advances in living standards very much
to their liking
_and

tbejr

MORE
came

in

as

only

is

for

year

the

other,

any

"

desire

election

an

But> will 1956 be judged as a
«good time» to buy? preSent odds
would suggest that it won't quite
measure

up

contrary

to

cast>»

to

1955

the

because

"standard

(1)

fore-

f

believe, prices will be
advancing rather noticeably, at
feast'during the first half of the
year> and thus will average moderately above present levels, in
contrast

to

stable

and

wjp be jess

and

Giving effect to
issue, capitalization
pany will consist of:

b2

hence

in

there

tendency to purchase

use.

leave

to

seems

the

ques-

tion of the 1956

consumer

level

important extent
who have some-

up

to

a

very

to those of

thing

to

petroleum
companies
and

us

sell

it

from

building

or

buying

whether

—

products

be

your

materials

flooring products from

ours,

forecast

another good
year

revenues

the
of

of I

current

the

com¬

$45,071,891 in

debt; 150.000 shares of
value preferred stock in
two series; and
2,000,221 shares of
common

stock, $5 par value.
Among those associated in the
offering are:

Kidder, Peabody & Co.; W. C.
Langley

& Co.; A. C. Allyn and
Inc.; Central Republic
Co.
(Inc.); The Milwaukee Co.; F. S.
Moseley & Co.; Piper, Jaffray &
Hop wood; Dean Witter & Co.;
Co.

Blair

&

Hutton
ties
&

Co.

Incorporated; W. E.
Co.; Equitable Securi¬

&

Corp. and Laurence M. Marks

Co.

Form Harold Shore Co.
Harold

has
50

C.

been

Shore

formed

Broad

&

with

Company
offices

at

Street, New York City,

to engage in a securities business.

Partners

Harold
C.
Shore,
Shrank, Joseph Sher¬
wood, Charlotte Rosenzweig, Har¬
ry Sugar, Newton D. Heller, Sam
Bertram

Boris

are

P.

Emanuel

and

R.

Isroff.

Strauss & Co. Opens
Strauss & Co. has

been formed

with offices at 40 Exchange
York

City, to

engage

Place,
in a

.

securities

Summary and Conclusion
Our

months

per

New
^

12

funded

$100

items;

hurriedly to insure the merchandise actually will be available for
This

the

attractive

and incentive to buy many
and
(3) most goods wm

supply

For

on
total
operating
$22,210,287.

prices this year; (2) heavy buying
this year bas reduced the
urgency

greater

sources.

for

probably

says

—

yes,

general

1956 will be
a

record

business,

somewhat

better

business.

Partners

are

Kurt Strauss and Fritz Kaufmann.

—

and
than

B.

C.

Christopher, Jr.

Benjamin C. Christopher, Jr.,
cast.'7
But we will not be able partner in B. C. Christopher &
to
count
as
much
on
Kansas
City, Mo., passed
general Co.,
economic
expansion
to
bolster away on Nov. 16.
indicated

by

the

"standard

fore-

T-r

32

The Commercial and

(2336)

Continued

from first

the producing industry by investors and lenders

page

L
)

There

■

Petroleum Financing
October

1930

bbl.

000

within

and

months threw

nine

the market 750,-

on

day of cheaply

per

de-

veloped production at a time when
the country's
daily consumption
only 2,500,000 bbl. It had to

was

he shut in by Texas State Troops
and then prorated, after a fashion,
before

legal machinery had been
perfected for such control. At the

time, overproduction in the
City field drew out the

same

Oklahoma

militia

state

price
API

The

posted

representative

of

Continent

Mid

in

oil

there.

nine

36-degcrude

grade

months

broke

from

East Texas

in

field, the

Texas

by

of 36-

price

20 cents

per

The Texas Railroad Com-

barrel.

mission immediately declared this
to be in violation of the conserva-

$1.29

to
18
cents ...per' ,,barrel, tion statute and shut down most
whereas East Texas oil sold at
any; 0f the wells in the state. The for-

price

low

obtainable—as

five

as

price

mer

and ten cents per

!:
h

later, and

of

There

barrel. The rate
drilling new wells dropped-to
one-third

about

the:

of

previous

restored 16
through the

was

held

have

sincei the

been

several

days
war.
raises

to the present price

war

normal, and the producing com-

of $2.82, but there has been no
drastically reduced their, general price cut in 36-deg-API
exploration personnel. And
for Mid Continent for 16 years.
_

panies

C

several

years

I
■*;.

Under such
ment

L

C

conditions develop-

expansion by the indeto be financed, if
possible, by equity money; there
had

few bank loans possible, and

were

t-;

supply-

^ltuation prevail d.

and

pendents

in.

chaotic.

a

demand-price,,

in

producing property. For

originally underlaid that produclease

had

or

migrated

their

first, and
possible. Wells

from

produce

acreage

fast

as

newly

al-

were

lowed to produce at their full

pacity,.-and

the

available

as

a

ca-

discovered

msist upon an iample; factor

technical men.
Types

Petroleum Loans

of

industry

petroleum

is

to ity

distant

those

suppiy

the increasing

fGr

tefltial
the

Cos.

Dec.

demand

cities

distant

from

represented only a

small portion
^ tbe potential production of the
fjeid
rpbe prjce Was then four
cents per thousand cubic feet with
small sales at tw0 cents.

many

South

In

Texas

Gulf Coast, the
large reserves found
little interstate markets until

very

870
732

767

202

775

1,025

153

734

1,032

934

868

2,601

set,

1,148

1,556

3,258

available in bank

i Frederick G.

0f

of the borrower is

much

call on

a

f0

gas

for

money over, say, a

2-year standby

the

tion

a

Thus, apart from the current

decade

there

23 increases and 27 de-

were

up-and-down changes

ranging from $1 to
During periods ujl overprojl/lnmg
jjcuuus of uvcijjiu-

v.

Auction
was

low

and

discovered.

declined, oil

■:

)

K

prices,

retarded and fewer

were

1

wide

were

price

$2.29.

wasteful

process,

in the posted price. Those- the law of the

creases

—the

interstate

storage,

was

erage

rate

of

fields

by
uj'

decline

the

of

of

use
uov.

vi

av-

a

standby charge at

similar

"family decline curves," the best

fields

method then known but certainly
far from accurate.
While
controlled
conservation

for

competed

crude oil, and the price would rise,
This induced expansion in

being established much

was

also accomplished

ress was

progin

im-

programs and new fields would be

proving the tools and knowledge
of petroleum engineering. In the

fcrought

early Thirties the electric log and

drilling

cycle.
■

;•

>

in,

thus

Wells

produce

completing

their

at

the

permitted

were

maximum

to

pro-

ductive capacity, and the
gushers
in new fields often quickly over-

Eupplied
bo

the market.

There

was

official proration or regulation

(until

1927), and the oil-produc-

core analysis came

by the FedCommission, natural
producing property has become highly
regarded as security
eral

into extensive

service, providing a measurement

Power

.

for loans
ciinpp

to producers.

wnriH

w

tt

+Vi

-f

oil

ine"

,

the

to

.

,

Another important type of fi-

to

oil

water, the supercompressibihty of
gas
retrograde condensation, the

is

^ an

probable future ^a^e^,la^ balance calculation, and

value

of

profits from production. How could

the effect and advantage of pres-

bankers

sure

rely- h pon

-

of reserves
was
•

appraisal
when the price of oil
any

known to fluctuate

Both

widely?

so

State

of

Oklahoma

inaugurated

proration in the Seminole field in
1927.

The

East

Texas

homa City fields

were

and

Okla-

placed

der state control in 1931.
the State of Texas

un-

Bv 1935

passed

its

re-

vised conservation

i

law, and many
ether states
shortly followed suit,
These

laws were based
upon the
state's power to reduce
production
for
the
purpose
of

preventing

waste, inasmuch

as

excessive

dissipates

voir

rates

production at

energy and lessens

reser-

the

ulti-

mate
recovery.
But fortunately
the restriction also limited

tion

produc"market demand," which

to

has the economic effect of
stabilIzing prices. Thus the conservation laws have enabled the
several
state commissions to increase
the

ultimate

recovery

of

the

natural

the

engineenng of production not
..

.

limits
rormer

and

thereby

violent

crude oil prices.

prevent

fluctuations

the
in

recognizee,

1

1 °ljL

witn

tne

result

a™n^ aonrPcLt^^ra

®
aeainstfurthernflation
^.iiritv for lmHin*

h

ge

*

ann

,

or many years our petroleum
department has
assembled
and

combmed

tinancial

data

for

30

min]'mum

Davment

renresents

the

production

of

a

property,
- —

specified

a

a

sum

plus

interest

stated rate.

monthly payment.

ment, and the seller of the

prop-

In determining how much money ertycan safely be loaned on oil and
(1> The Purchaser of the propnatural gas producing properties, erty is obligated to operate and
the first test is
jbe
to

the

valuation

pr0perty—which
be

the

fair

market

of

develop the property and will obtain possession of the entire pro-

consider

we

valu

duction upon the retirement of the

or

what the prQperty WGuld seir for>
The loan should nQt exCeed
rea_

0il payment.

In the meantime, the

prQceeds from that portion of pro-

duction dedicated to the oil

•

that

As the figures in Table 1 show,

there

the

estimated

total

operator.

genius. It came through the concerted effort of statemanship of
the industry and the state authorithpir n^miraWa

anri

!

'

.

.admirable coopera-

.

111 breaking new ground for

the conservation of the
and

the stabilization
At the

ness.

nrimmt
.

,

»

same

resource

of the

j

•

techniques resulted in better

™n,f^r>!hetKeVye price reduction These
by the depression and the

proved
p

mgs

and

of

recoverable

esti-

reserves,

e£for's have greatly imthe

c
confidence
nuaence

accorded
accoraea

book value

mean

earn-

little;

Jbe criteria to be considered are
+Ue
tJhe Payout .of the
™

property offered

as

it cost.

security,
And, to

no
ac-

complish this, there has sprung
up
throughout the countrv a nrofes-

sion of petroleum-valuation
Qnitnnfc

onri

sultants, and

buying property enables the purchaser to pay in cash only a small
part of the total cost," and without

incurring liability for the balance
of the purchase price, which is
present worth, provided by the oil payment. This

so

that the valuation and the fore-

cast of future revenue tie

and

each

provides

a

is a distinct advantage over the
method of financing the purchase
of property by a straight production loan for which the operator

together

check

upon

the other.

stability, it became

judging such loans, the past

improved engineering matter what

.

mates

busi-

time the devel-

signed that his net after expenses
will be just sufficient to provide
for
operation and development
costs. The oil-payment method of

future

^e practice to extend the term of
ln ?ur ban£ we practice a procProduction loans to three years, ess of valuation described m the
then five years and, in the case of
£a£®r' . VallJ^tion of Oil and Gas
exceedingly long-life properties, ^roducin?,9 Properties for Loan
years by banks and longer Purposes,
presented before the
by insurance companies. Old-time American Institute of Mining and
bankers, particularly in the big Metallurgical Engineers in FebruCl}y banks far removed from the ary» I?58 by my associate. Kenod centers, had been in the habit
E. Hill, and myself. During
?f examining the applicants' past £he Past tw0 or three years we
inc°me and balance sheets. In the -bave °!;nd values determined by
early days of developing the prac- tbe methods described in that paJice of term loans to oil producers, peF
be closely comparable with
^ was Quite an experience to go Prices actually paid in the case of
before the loan committee with a several large sales of property;
re<4uest for a $10 million loan to benca' we ^.eJ J*1?*
Process
be secured bv property with a has been validated;by bona fide
book value of $500,000. But, in evidence of fair market value.

orders slowly became recognized,
the stability of producing property
became more and more respected.
The transition did not occur overnight nor by any single stroke of

during the term of the
oil payment because it is so de-

production of the property should

It took a long time for bankers
to forget the old price gyrations
and the overproduction of the
early Thirties and to learn to appredate oil and natural-gas reserves and production as security
for loans. But, as the authority
and effect of the state-commission

cr»™

some

r/i

k

i

conu

oil banks have

He pays very little in-

tax

come

were very few bank loans be at least twice the amount
to the oil companies
during the needed to repay the loan with indepression until the industry beterest.
In practice, the valuation
gan to recover, and the stabilizing of the property is found by diseffects of proration and improved counting the estimated future netengineering became increasingly cash production to

more

pay-

ment is not taxable income to the

m
''
f
some--which the property will produce,
measure of the trend of financing
by years> for the retirement of the
may be observed from the record loan
As a general
rul6j we feel

attained

caused




by

nancing *s to oil and natural gas
There are usually three parties
producers. Such loans are generally secured by mortgage on the to the transfer of property by the

leum engineers.

resource

and, at the same time,
hold production within reasonable

on

J?* ce woria war n ine Iavor- producing properties and the as- oil-payment method: the purchaser
ad,
of !n
+
innatl0n, upon tne signment of all or part of the pro- of the property subject to the oil
well
eenoeA^S°^ih
h
duction income, with a stipulated payment, the buyer of the oil pay-

^}cr^sed recovery,
but provided the., basis^ forjnuch
would stabilize supply and
prices, more accurate judgment of_the reThe mechanism adopted was
pro- covery to be expected under difrecognized. Although 20 years ago
ration—the allocation of producconditions of production, mans based on oil properties were
tion by properties and fields and and
^ greatly increased the limited to a year or 18 months,
xestricted to market demand. The reliability of the reports of petro- very gradually, as the oil
business

A,

I;

mg.

maintenance
^and repressurThese and other advances in

producers and consumers
needed
a
control
which

badly

brought

.

producers

the

rates

thereon at

of the porosity, permeability, water
oil companies, representing
contact, and so on, of'the sand. a
u
% °f thei net crude oil sonabie proportion of the
value,
Scientific studies were carried out
^dact;°P ^d T85% of the refm- an index referred to as the <<loan
on the producing mechanism of W
njns m the United States. Al- ratio;» Another yardstick is a
the flow of liquids through sands,
^ +v.«eien 3 3- a- ?° means forecast of the net cash revenues

was^atTeasfeona fam— the effect of the expansibility of
business. The basis for
credit

:

until the proceeds therefrom, free
and clear of expenses, shall amount

_

J

well

0vmershiJofaspecified Sorlion
of

.

tax

An

modest rate

a

production Loans-

gas

so-called

drilling

new

As production
withdrawn from

refiners

then

was

Estimates of

based upon the

reserves were

uuiua

but it

land.

commerce

inas-

are

production payment, often termed
"oil payment."

aawar.Wi'sa' (xsrasrsas gcrgjaaggsgs aar-*
$1, and in the 1921-1930
during the first year. It was a

to

financing,
banks

ing properties was developed involving the use of the oil and gas

the commitment by the bank that
at the end of the standby period
minimum
take
at
fixed
prices, such borrowings can be converted
generally subject to future escala- to term loans. The borrower pays

the producer is assured of

than off-

World War II, a special method of
sale of oil and natural gas produc-

lines has been established where-

by

more

the>, oil

as

come

period, during which the may
these long pipe- draw down funds as needed, with

contracting

it

believe,-by the flexibility

we

.

of

practice

A

obtain

loans,

by oil properties, where circumWhere a company plans an ex- stances warrant; and oil
producers
tensive expansion program for the in the development stage freconstruction of refineries, pipe- quently need to change their
plans
lines, or field development which; and financing requirements.
will require capital funds of un-^
determined amount, it is practicOil-Payment Financing^ :
r
to arrange a credit agreement by
With the greatly increased in-

United

States.

must

P°sue; Capital Formation in the Petro- prepared to quickly adjust, reduce
n"™ Y^rk! n.' Y.,eFebaS(i952)°.na a" ' enlarge, Or extend loans secured

of the

areas

saies

871

Coqueron and Joseph E.

(only n years ag0)
jn the
following
decade
long - distance
gas pipelines were built to almost which the borrower has
all

Total

0

resource.

may

customary in commercial bank¬
ing for the borrower to maintain
appropriate deposit balances with
the lending bank.
This possible
disadvantage from the standpoint

26

1939— 48
jror example in the mid-Thirties 1944— 145
tbe gag reserves of the Panhandle- 1949— 802
Hugoton field were enormous, but. 1954— 554
j.be

the banks

is

Others

usual

Joan

a

deposits in order to make

Public &

ai
Banks
supply and induce prices 1933—
1
field comparable with the 1934—
9

competitive value of the

Because

(In millions of dollars)
Insur.

considered

satisfactory term
although, if the property
securing
the loan is of
exceedingly long life
the term may be extended.
'

TABLE I

demand to catch up with the poin

oe

Long-Term Debt of 30 Oil Cos.*

market, and many years

required

were

tion ot liquidity. Thus, m the
case, a tive-year bank

the

developed much faster

was

tban tbe

Thus

cities.

matur-

5e.c®^.^.®°^merctal

banks
need to mamtain an-overall posi.

the large companies of prime
credit rating. Such lending wardevelopment'in the art of trans- rants the lowest possible interest
p0rting gas through longer and rates and requires little or no enlarger pipelines and a change-over gineering technique,
from manufactured to natural gas

0f

of®

value

property. Also, bank
be limited to a reasonable

The largest volume of financing

the

estimated

loansV^

Loms to Major
in

the

and

secondary product to supply distant markets but it took years of

in

Thursday, December 1,
1955

.

.

organized oil departments staffed mates, at best, may prove to have
petroleum engineers and been too high (or too low),
will

f0Und in the search

were

oiiyaJderbecame

for

"rule of capture," to the operator- 1944
who produced it, whether it had

exam--as

pie after World War I the price of
36-deg-API Mid Continent crude

countrv

extremely

the

those had to be of short maturity., adjoining properties. Hence there
Even prior to the depression, the was intense competition between
violent fluctuations in crude oil. producers to get in
early, drill up

prices did not inspire confidence

largef nahoral-gas rlser^ot

prior to proration and the umti-;
the
any

zation of oil fields, the oil in
new
field - belonged, - under

er's

parallel im-

a

.

with

provement in the position of natu-

deg-API Mid Continent crude oil
was arbitrarily
raised to $1 by
Secretary Ickes in late 1933 and
held at $1 or slightly above until
World War II. With the gradual
establishment of the proration procedure,
price fluctuations have
practically ceased. The last general price cut in Mid Continent
crude oil occurred in August, 1939
when
some
companies reduced
prices

been

has

Financial Chronicle

The

evaluation of producing
property depends primarily upon
estimates by petroleum engineers

0f the oil reserves and the future
decline in

production.

A

prudent

lender, knowing full well that before the loan is paid off, such estiOT

r

^

„

,

'

is liable

"

,

.,

n

;

e

r

e

J

,

pc*:

»

ciiirhtlv lower

ft a

7

of:inte:^e.f

~tim„

A H Day3
uueafortJle^oil^piaym<enlt. H P
o

P

come tax on his sha

d"^ome, excep
aPPbed to

in^e^

"juc.h as such revenue is

'

able tax-free

as depletion
This privilege cannot be
in Caimaa where the a
d0 not allow depletion on c

Loan Purposes," J.

Petroleum

[7] Sect. 1 (23-6), Sect. 11 <5)

Technoi.
(1953).

.

n-

•

(3) The seller, who receives cash
payments simultaneously from the
purchaser of the property and the
buyer of the oil payment, is sub-

jec^ to capital gains tax of 25%
these
payments over the cost of the
Property to him. An individual in
a high tax bracket who owns de¬
011 the excess of the sum of

veloped property will often find
it advantageous to sell out and
realize at least 75% of the prop-

•'Va^Uon o^TrLuUn. ^^pLis"'!'; erty's
5

v-

(2) The buyer of the oil W

■

value at once rather
to continue to operate for

years and net the

relatively

than
.

small

Number 5486

Volume 182

The Commercial and
Financial Chronicle

...

33

(2337)

portion of future earnings left af¬

tion of plant

value, a partial guar¬
the borrower's
principal
stockholders is sometimes
required.

heavy personal taxes.
the joint purchasers will

ter

antee by

Because

need to pay no income tax of

con¬

Refineries—

during the life of the oil
payment, they ©an afford to pay
sequence

larger aggregate amount than

a

*

The smaller
eries

an

face

independent

keen

■

bankers.

refin¬

competition from

outright buyer who would be sub¬

the

ject to income taxes from the out¬
set. In the previously mentioned

tuations in product
prices and the
necessity for frequent plant im¬

paper on valuation it was shown
that the purchase price of a prop¬

provement to compete with

ment, and any property will sup¬

oil

port

a

larger

than

a

straight

payment

reserves, inventories,
receivables,
and the assignment of
marketing
contracts.

loan

production

the

as

loan,
savings in¬

tax

Interstate oil

revenue avail¬

lines

able for debt service.

There
oil

payment
some

relinquish

hesitate

owners

their

additional reserves may be found.
In such cases, the owner may sell
the

property, subject to a first oil
payment which is simultaneously

sold, and further subject to
oil

ond

the

payment,

first,

retained

and

sec¬

a

subordinate

by

to

the

seller.

ment

is

of the oil pay¬
indicated in certain

<

to

not

life

of

the

result in

oil

payment,

it

will

savings in cases where
the purchaser will be
drilling ex¬
no

tensively, thereby keeping out of
income taxes.
Moreover, where
the

purchaser

income

from

needs

the

the

entire

property

pur¬

chased in order to pay for further

development, he cannot afford
dedicate
tion to

to

portion of the produc¬
payment.

a

oil

an

A producer may also sell an oil
payment while retaining the re¬

sidual interest in his
property.
this case, the consideration

In
re¬

ceived is held to be the sale of fu¬
ture production, taxable not as

capital

gains

in

come

the

operator,

share

in

of

for

or

deductible

year

sold.

year

excess

drilling

other

of

an

ex¬

reasons,

losses for

given

a

taxable income

and is unable to
carry
excess

When

forward the

it is advantageous
payment. In effect,
the operator is
selling an interest
losses,

to sell

an

oil

in future income, but for tax
pur¬

by making

run

deductibles.
been

this

taxes

two

over

of

use

the long

all

his

of

However, there have
lower-court

decisions

which, contrary to estab¬

year

lished practice, held that the

pro¬

ceeds of sale of such oil payments
should be taxed as capital gains.

Unquestionably these

decisions
will be tested in the courts.
When

an

oil

payment,

the

lender

tomarily is secured by

a

cus¬

mortgage

by assign¬

income; and both the
lender and the oil-payment owner
must have

that the

assurance

op¬

erator of the property is
capable,

reliable, and will properly operate
and, if necessary, further develop
the
property until the oil payment
is satisfied,
regardless of how long

that may take.

Natural

processing

plants
extract natural gas liquids from
the gas processed—often
produced
by others—and retain a percent¬
tee.

often

financing with insur¬

later

maturities.

Loans

take
are

the
usu¬

ally secured by mortgage and/or
by throughput agreement, assur¬
ing revenues adequate for operat¬
ing

and

expenses

Where

such

major

debt

companies,

agreements

service.
are

interest

with

rates

relatively low.

gas

the

liquids produced
Motor fuels so produced

as

a

com¬

Tankers

are

often owned by in¬

dependent operators who lease the
vessels to major companies under
bare-boat
charter, with charter
hire sufficient to amortize
secured

by

a

loan

preferred ship mort¬

a

in,

gage

refineries.

net

per

produced in

whole

economy,

leum

industry's

$9 billion

seldom exceed five years, and in¬
terest rates are relatively high,
where the loan is

a

high propor¬




reach

or

ex¬

long-term
averaging 13 to 15% of total

debt

capitalization. For the past 5
the new funds

obtained

years

from

net

borrowings by these companies
averaged 10.5% of their capital ex¬
penditures. These figures are for
the

30

highly

including the thousands

be

successful

The balance of the

compa¬

companies and independent opera¬
tors, borrow higher percentages of
their capital needs.
Our experi¬

tankers

ence

also made to

credit of

or

the

on

major with borrowings
made progressively with construc¬
tion, and to be converted to longer
a

term loans upon

vessels.

completion of the

'

Where

a

major oil company pre¬

fers to lease service-station prop¬

erties, perhaps with an option to
purchase, the assignment of its
unconditional rental payment pro¬
vides excellent collateral and calls
for interest rates accorded such

major.

Maturities

from

range

10

to 20 years, and

10-year financing
is readily handled by banks.
Future
You

remarkable

try.

familiar

growth of

Since

with

our

the

indus¬

the

depression of the
early Thirties, the consumption of
petroleum products in this coun¬

try has increased
straight line at

a

nearly

very

years,

resource

estimated

an

73%.

or

8.35

It is in¬

natural

Btu

basis

almost

doubled

in

the past 10 years.

for

10 years,

next

much

as

as

the

factors need

many

be considered. These involve prob¬

lems for the economists and need
not

be

ciate,

examined

John

G.

here.

My asso¬
Winger, of our

economics

group,

ex¬

pressed his opinion, before the
petroleum branch of the American
Institute of Mining and Metallur¬

gical
last

Engineers

month, that

at

New

our

mand may increase

Orleans

domestic de¬

approximately

50% by 1965.
The known

reserves

of crude oil

country are about 13 times
year's production. Every bar¬

of

oil

produced

must

be

re¬

placed by a barrel of new reserves
and this, together with the cost
of

finding and developing

serves

to

support the

production, will require

as

they

enormous

future

increase its indebtedness by

billion

1965.
As

to

or

more

per

year

in

the

future

from

illon, Read & Co. Inc.,
resentative

banking
Bank

for

the

and

Nov.

28

as rep¬

investment

an

group,

on

World

entered

into

South Africa in the Uni¬
States.

ted

The proceeds of the bond issue
and

the

World

rent

loan

Bank

help finance the

will

costs of the

expansion

cur¬

being

program

carried out by the South African
Railways and Harbours Adminis¬
tration.
Improved and expanded
transport, particularly rail trans¬
mand sof the Union

de¬

growing econ¬

omy.

Subject to final clearance by the
Securities and Exchange Commis¬

sion, the bonds will consist of: $3,000.000 of three-year 37/s% bonds

$200

to

banks

billion

expanded

today.
their

maki*

not

semi-annual

option of the holder any
of interest or principal

the bonds may.,

on

Swiss francs
lected

in

if unrestricted
available, be col¬

are

in

Switzerland

Swiss

sufficiently to provide the large francs, at the fixed rate of 4.30
increase

in

credit needed

for

the

Swiss

postwar industrial expansion; and,
whatever the future requirements

francs

The

upon

grow

to be willing and able

fast enough to

serve

all

banking needs.

proper

It has been

pointed out how the
credit rating of the petroleum in¬
dustry, particularly the producing

business,

has

been

greatly

im¬

proved. The banks have increased
their knowledge of the industry,
the risks
involved
and not in¬
volved, and have learned how to

appraise

situation—in

the

short,

Several of the large

how to lend.

banks have established

Bank

loan to the Union of South Africa

and bears interest of 4V2%,
including the 1% statutory com¬

years

mission

by

charged

Amortization will
1958. The United

the

begin

Bank.
July 1,

on

Kingdom has re¬

loan

from

the

to

its

capital subscription

Bank.

The purchase agreement between
the

underwriting

group

Union of South Africa
in New York

City

on

and

was

the

signed

Nov. 28 by

petroleum

Kingman Douglass, Vice-President
staffed with compe¬
tent engineers and other technical of Dillon, Read & Co. Inc., on be¬
from the

petroleum industry,

number

of

retained

the

smaller

half
J.

of the

E.

underwriters

Holloway,

South

and

Dr.

African

petroleum
Ambassador to the United States,
engineer. The banks have become
on
behalf of the Union Govern¬
more aggressive.
Time was when
the banker sat back behind his ment. Eugene B. Black, President,
roll-top
customer

desk
to

a

and waited
come

in.

It

for the signed the Loan Agreement on be¬
was

up

half

to the customer to take the initia¬

large oil companies included in

the banker has become sales con¬

J.

E.

of

re¬

Board

Chairman

of

the

of

to

the

Special

Re¬

Committee
on
Rules
Procedures
is
Homer
A.

and

view

Senior

Partner

in

the

Vilas,

Stock -Ex¬

change firm of Cyrus J. Lawrence
& Sons.

"The

Committee," Mr. Funston
charged
with
the
responsibility of reviewing
the
said,

"was

rules,

policies

and

procedures

of

the

Exchange and of recommend¬
ing revisions and eliminations that

would
and

increase

the

effectiveness

productivity of members and

member

firms

services

of

and

enhance

the

the

Exchange com¬
munity to the public."
Highlights of the Committee's

recommendations,

which will be
the Board of Gov¬

considered by

ernors, include:
An
educational
program
de¬
signed to help members, member
firms, their representatives and

their

customers

mum

benefits

derive
from

the

maxi¬

the

broad

opening a margin account.
Elimination of the reduced com¬

mission
tions

round-turn

on

completed

which

transac¬

within

started

was

Leaving
each

30

days,

experimentally

the

World

Holloway

of the Union

to

firm

Bank

and

Dr.

signed on behalf

of South Africa.

discretion

the

the

of

amount

charged
and ship¬

customers for postage
ping in connection with forward¬
ing securities — except.-.that th&

customer should be

charged when

the amount involved is $1 or more.

Regular compilation of informa¬
tion

regarding

transactions

listed securities effected elsewhere
than

the

on

Exchange.

Consolidation of the stock clear¬

ing corporations of the New York
Stock Exchange and the American
Stock Exchange.
Continuation of the present ban
member firms splitting com¬

on

missions with

non-members.

No

change in the present ban
on
part-time
employment
of
registered representatives.
to odd

lot

dealers of

charge similar to the Exchange's
charge
of
1 %
on
commissions
a

earned

by members and member

firms.

Development

of

pilot

a

opera¬

tion by a group of member

banks

listed

and

the

value

depository

to

handle

certificates

cashiers'

and

firms,

companies

determine

and

leased the pound sterling for this

departments

men

with
the
approval
Board in August last
year.

Extension

World

be for financing industry, in¬
being made concurrently with the
cluding the petroleum industry, •bond issue is for a term of 10

to

him

$1.

per

£9,000,000

may

the banking fraternity can be re¬

the

transmitted

membership
an
exhaustive
survey of Exchange operations by
a Special Committee
appointed by

be redeem¬

1958,

At the

the

Exchange,
that

had

for

bonds. The Union of South Africa

payment

resources

Governors

about two years ago.
bonds will

For the

Thus

Stock

announced

the

bonds

98V2%.

1,

cently
of

Funston, President of the

York

bonds

1, 1960 priced at 100%;
$17,000,000 of ten-year 4^4%
1, 1965 priced at

will

New

100%;

100%;

bonds due Dec.
The

Rules

on

market provided on the Exchange.
An increase to $1,000 from
$500
in the minimum amount needed

Dec.

resources

$160 billion

of

report

Cyrus J. Lawrence & Sons.

$1,062,000 principal
postwar period, the commercial amount of the
ten-year bonds.
banks of the country responded to
Cash received for the sinking fund
the call by increasing their com¬
is to be applied to the redemption,
bined total loans from $26 billion
by lot, of such bonds at 100% plus
at the end of 1945 to a present
accrued interest.

from

the

Procedures, headed by Homer
Vilas, Senior Partner of

Keith

sinking
banks to provide their share of
fund payments (or will surrender
these large funds required by the
bonds at their principal amount)
U. S. petroleum industry, you may '
sufficient to redeem on each June
judge from the record. During the 1
and Dec. 1, commencing June

total of about $76 billion.

members

to

the

trans¬

Special Committee

A.

External Loan Bds,

by

the

Exchange,

the

able, except in connection with
the sinking fund for the ten-year
the credit which will be

available

mits

capital

Union of So. Africa

and

may

Funston, President of

and

if this proportion should continue,
the industry in the United States

tive. But times have changed. Now

capital expenditures.

its

Dillon Read Offers

due

For the

new

35

new re¬

increase in

of

Dec. 1, 1958 priced at
possibly can. Hence, for the do¬
mestic industry as a whole, some¬ $3,000,000 of four-year 4%
due Dec. 1, 1959 priced at
thing in the order of 12 or 15%,
of capital expenditures has been $2,000,000 of five-year 4Vs%

lied

looking forward to the prob¬
growth

inde¬

Keith

New York Stock

requirements.

due

increased

gas be included,
consumption on a

able

much

were

combined

In

as

period, their total

the

has

pendents borrow

the

same

During the past
domestic consumption

day in 1945 to
million in 1955,

of

many

as

from 4.86 million barrels per

rose

that

average rate

an

of 5.8% per year.
10

is

rapid industrial expansion of the

Financing

all

are

financing

-

NYSE Procedures

oil

will have excellent service in the

derived from net borrowings: and,

Service Stations—

the

of

Thus you may be as¬
sured that the petroleum industry

industry, port, is essential to meet the

of smaller

adequate,
thereby warranting interest rates
predicated on the credit of the
major. Loans for construction of
are

standpoint

year

ter

must

the

capital markets—the sists of
$25,000,000 external loan
banks, the insurance companies,
bonds of Dec. 1, 1955 yesterday
and the public?
A key to this
(Nov. 30) offered to the public by
question may be found in the com¬
the investment banking
group and
bined figures for 30 large oil com¬
a World Bank Loan of nine
mil¬
panies assembled by our petroleum lion
pounds sterling (equivalent
department for many years. These to
$25,200,000). The bond issue is
data show that those
major com¬ the first public
offering of the
panies generate a very large por¬ Union of

rel

petroleum gas produced
also add to the risks of financing
such plants.
Loans are secured,

per

will

companies.

petro¬

expendi¬

banks

by 1965.
agreements
with
the
Union
of
What part of these
large capital South Africa
whereby the Union
outlays will be generated from
is borrowing a total equivalent to
earnings and what will need come
$50,200,000. The transaction con¬
from outside

keeping
liquefied

the

capital

may

ceed

have

race.

that

nies.

provisions

from

Thus

tures in the United States of
$5.7
billion in 1957

banks

the prices of

oil
cost

between

Special Gommillee
Urges Revision of

The

keen, which is all for the better

reasonably be assumed,
a
steady growth of the

granted

one

with the octane

unit

shipping,

volves the hazard and expense of
up

crude

competition
be

country's refineries, pipe¬
marketing, and
petrochemical facilities will also

lines,

a

Wide fluctuations in

of

This

to

been increasing (from
$1.22
1949) and, with rising cost lev¬

while

in¬

barrel
1954.

the

equivalent

has
in

in this

This

in

reserves
was

say, a 10-year period. The
insurance carried and the char¬

pete with the products of the
large

Petroleum

$1.76

new

States

tion of their capital
requirements
out of earnings, with

Tanker Loans—

petroleum

Gasoline Plants—

of

up

financing the purchase, of teresting to note
that, if the allied

of the oil
payment and
ment of the

age

and

which

diately become ordinary income.
minimize his

maturities

such

poses, the proceeds of sale imme¬
In this way the
operator is able to

restricting

companies

in¬

current

as

because

penditures
has

but

generally

10-year

use

advantage is in
minimizing income tax during the

Federal

a

ance

Because the

cases.

to

Commercial banks finance

ary.

are

However, the

subject

pipe¬

atively long-term financing, fre¬
quently 10 or 15 years, is custom¬

complete

a

and products

dividends to 7% of valuation. Rel¬

to

equity
property, feeling that eventually the price of oil (and espe¬
cially of gas) may rise or that
in

are

limitation

variations of the
procedure.
For ex¬

are many

ample,

United

be improved and
expanded.
it
can

Pipelines—

both the value of the prop¬

crease

erty and the future

majors, characterized by fluc¬

veloping

higher els and the
increasing cost of find¬
quality products. In addition to
ing new reserves, it will probably
mortgage on the plant, loans are
continue to go higher. At the same
often secured
partly by crude oil time the

erty can be as much as 20% higher
through the use of the oil pay¬

inasmuch

the
"Financial Analysis of the scious. He
understands the cus¬
Petroleum Industry for 1954"
by tomers' problems better, and he
Frederick G. Coqueron, of our
goes after the business. This API
bank, the cost of finding and de¬ convention is full of

to

a

central

the

papers

of

processed

purchase

in

and

the

sales

of
member
firms,
lending banks and transfer agents.

departments
In

addition

to Mr.

Vilas, mem¬

bers of the Committee included:

Amyas Ames, of Kidder, Peabody & Co.; Clarence A. Bickel,
of Robert W. Baird & Co.; James
F. Burns,

Jr., of Harris, Upham &

Co.; Rowland H. George, of Wood,
Struthers & Co.; W. Fenton John¬
ston,

of

Smith,

James Crane
Leeds &

Barney

&

Co.;

Kellogg III, of Spear,

Kellogg; Michael W. Mc¬

Carthy, of Merrill Lynch, Pierce,
Fenner & Beane; Jerome W. Nam-

Nammack;
of Paine,
Webber, Jackson & Curtis; arid
Joseph M.
Scribner, of Singer,
mack,

of

Alexander

Deane

&

Sprague &
R.
Piper,

Scribner.

The
-34

jrom page 16

The

long

in

place'

'qualified

and

owner¬

Under both theo¬
ries the oil and gas rights can be

ship' theories. 8
from

of

the

and

estate

surface

the

'rule

severed

capture' is rec¬

ognized."
A typical granting clause pro¬
vides that the lessor, for stated

Viewpoint
it actually
less."

whether

acres,

prises more or

accurate

an

for

tion

not

is

certain

end

to

owns

.

Thursday, December 1, 1955

.

.

Royalties

be remembered that cash bonuses

and

tain

computed upon the basis of the
acreage specifically described in

the

for

purpose

-exploring, drilling and mining for
and producing
oil, gas, and all
other minerals therefrom.

las,

has
is

lessee

the

establish
his right to all commercial de¬
posits of minerals discovered by
him
the

surface

ations

to

attempting

reasonable

a

the

that

this

of

eliminated

by

objectionable
might be

clause

the

adding

fying words "found at
more than 100 feet (or
>agreed

depth)

face."9

Some

elude

quali¬

depth of

a

some

other

the

sur¬

below
lessees

that
to in-

state

attempting

only

are

below

distance

by his drilling oper¬

and

features

they

minerals

such

might be in solu¬

tion

crude

with

the

time of production

oil

the

at

and separable

the refinery. If such is
the intention, the lease might in¬
clude a
special clause that the
-only minerals in the contempla¬
tion of the parties are oil, gas
at

"and

other

minerals

therewith."

In

minerals.

The

solution

in

broad

a

inorganic

.many

sense

substances

potash, asphalt and coal,

parties

might

whether

the

states

the

consider

well

uranium

deposits

are

Within the extent of the negotia¬
tions. Literally construed, the ex¬

pression "all other minerals"
'broader

tended.

than

Cases

substances

stone,

the

may

lessor

in¬

arisen where

have

as

common

lime¬

as

marble, sand, gravel, and
have sought to be

.even

water,

declared

minerals.

lessors

Some

seek to strike the words "all other

minerals"

from

the

lease.

The

phrase has been mentioned here
-for

the

of

illustrating
ambiguity exists and
that the
clause may favor the
lessee as presently drawn.
that

purpose

some

A

typical

granting

clause

also

gives the lessee certain rights in¬

cident to and

acquire
land

for

necessary

pro¬

the cor¬
of rent and he wants

the

adjoining

or

lessor

Mother Hubbard clause has many
times proven

advantageous to Lie
lessee, it follows that from the
lessor's
standpoint,
the
clause
merits careful thought and atten¬
tion.
of

One

a

lessee

shall

tions

is

I

that

tures

lease

ducer
tures

the

the

on

Some

the

leased

forms

right

whether

leased

struc¬

premises.

give

the pro¬
build struc-

to

production is from

premises

another

or

property.
It

has

also become customary
granting clause to include
language reading substantially as
follows, to wit:

"Notwithstanding
lar

any particu¬
description, it is nevertheless

the intention of the

clude

within

does

so

and

all

this

hereby

land

claimed
named

by

not
but

land

lessor

survey

or

in

in¬

and

produce

the

surveys,

herein

in

and adjoining
described land up to

boundaries

landowners.

calculating

of

For

the

the

the
rental

abutting

purpose

of

payments

hereinafter provided, said land is
estimated
I
.

Hi1

comprise

The

create

further

a

Regulation of Production,'

Rev.

370

16

Tex

(1938)."

Texas

Law Review 895,
900, "De¬
fects in Oil and
G^s Leases" (1950).




which

do

at

severance

face of the land.
execute

Should

lease

a

the

to

lessor

a

center

of

the earth if the producer only in¬
tends to
feet?

drill

Why

to

depth of 5,000

a

limit

not

the

lease

and

make

first

5,500 feet below the surface

of

the

our

it

effective

land?

had

which

land

of

lease

ago

years

small

a

held

was

the

to

as

Several

company

tract
under

by shallow production.

producer

wanted

lk

royalty is

to

drill

1/10, except that

or

interest

lessee's

the

called

the
is

pattern.
The
(%) is usually

distribution

working

interest

and

% share payable to the lessor

described

that

there

where

are

the

the

producer a very considerable
advantage.
The producers argue

that

they

these

need

their

cover

connection

the

spacing requirements for the

the

average

case

the

the

by

have
it

immediate

original

been

wasn't,

position

lease,

we

in

true
where
the
pro¬
drilling in or near an

established field and knows what

thereby. Since
still had a trading

Some
cute

landowners will not
lease

a

fraction

is

5/6.

In

tern

has

able

to

unless

'changed
few

a

been

the

even

lessor.

exe¬

original

ever, instead of changing the roy¬
alty fraction, the producer elects
to give up a fraction of its work¬

ing interest
overriding

royalties

1/16 of %,
or

1/32 of %, 1/64 of %
upon which

other fraction

any

the parties agree.
an
as

An example of

overriding royalty provision is

usual

in

addition

their

to

i/8

leases

the

been

had

above

line

erals

so

The

or

effec¬

of

the

riding
in

term

or

form

clause

of
is

for

in

universal

a

and

This

use.

provides that the lease is
definite term of years (usu¬

ally called

the

"primary term"),
long thereafter as oil and

as

produced from the leased
premises.
With
the
growth
of
pooling
provisions,
some
ha¬
gas

are

bendum

clauses

continuation

lease,
and

not

gas

so

the

land

land

has

clauses

rately

will,

In

pooled.

however,

said

Pooling

be

sepa¬

most

of

the

the

lease

forms

term

re¬

has

the

friends

the

in

royalty for

the

over¬

shall

be

interest

$1,000 per well per year,
$50 may sometimes be too

the

should

lease

producer under
gation

to

Some

an

royalty

and

subject

reduction

of

8/8

of

all

%

oil

payable

used

in

as

the

shows,

other

to

gas.

ducer

the royalties
gasoline _• and
other

inasmuch

have

as

plant

processing

become
pro-

wet

a

The

producer

prefer to have the royalty
computed on the wet gas stream

/account dor pad of
38 ga! r/ther t113"

forced

fcr
far

lease

forms

producer
be

may

tions;
the

available

for

of

the land

for

his

he

his

run

,

ther

deferred

month

opera-

may

use

compressors

are

out

of

involv¬

never

intended

as

royalty.

instances,

instead

of

successive

like

upon

payments or tenders.
tory bank becomes

12-

rental

The deposithe lessor's

A fixed place to make the

agent.
rental

payments

is

essential

to

dividual

lives
are
concerned;
however, the necessity for a de-

pository bank largely fails where
insurance

an

concerned.

insurance

com-

pany's place of business will not
be

subject

change and it has

to

found

that

fectly

willing

rental

to

office

direct

The

usual

provides

the

lessor

;

clause; aIs0
deliver t0

the

dspository

releases cover.

or

^

-surrender
of

t

the

th

thereby

and thereby

lease

j

as

d b

d

of

tions

Qr

lea*edP premises

the

at

may

and

to

release

the

to

lessee

execute

bank

per-

company,

rental

that

ti

the

of

are

to make

agree

payments

home

!lhe

lessee's

most

to such
reIieved

to-the acre-

as

The rentals are

proportionately

reduced,

Pooling

Pooling

.

found

provisions

in

lease
the

forms.

lessee

other

tie

tracts

any

land.

combination

that

of

order

in

gives

pool the
part of it with
However, the

right

or

being
modern

clause

The

the

are

the

of

many

any

these

on

provide

is

company-lessor

The

leased land

royalty

leases

for

periods

as

products.
Most

of

sum

of $
and during the entire
primary term, the commencement
0f drilling operations may be fur-

having

pay

credit

agreed bank the

an

and his heat treaters and
may use
the oil to oil his roads without

to

lessee shall

the

to

royalty

use

example,

to

gas

lessor in

clauses, the
drilling oper-

the

tender

or

plant.

provide that

may

free such facilities

unless

"t Ue of products
all obligations
age surrel£ered.

of

Some
the

to

/f ?hicet
the treating

enn
end

pay

gas

would

be

a

perpetual existence, and we have

increasingly important to the

to

separately owned
to develop

a single
problems,
other hand, might well require -Some
of these have been disthat the royalty be paid on all cussed by Mr. Ralph B. Shank
oil
and
gas
produced, whether in two articles appearing in the

royalty

is

payable

duced and saved.

or

not,

oil

on

A

lessor,

thus

pro-

on

operate

the 'lease

placing

on

ing

all

products

eliminating
It

the

is

produced

and

waste.
the

gas

division

orders

are

lessee

prepared and

among

These

the

time

10 Note

Mr.

Adoue,
in

Oil,

Annual

7,

supra.

Wilkinson

"Royalty
Gas

and

Articles

on

referred

to

include

Oil

and

Gas

Law

and

Taxation, Southwestern Legal Foundaticn, p. 195 (1951); Joseph T. Sneed,
"Value
Where

of
Gas

Lessor's

Only

is

Share

of

well

the

can

Production

Produced," 25 Tex.
L. Rev.
641
(1947); Robert E. Hardwicke,
"Evolution
of
Casinghead
Gas
Law," 8 Tex. L. Rev. 1 (1929).

pooling

has
land
subsequently
lessee

the

the lessor's

on

lessee

pool the drilled lease with an undrilled lease, and thus reduce tne
"The lessee is

Jacques
P.
Pooling Provisions
Mineral Leases," Second

Institute

a

the

in

Suppose

lessor's royalty?

and

pooling by the
place? There

take

limit

the

sell

royalty oil and fix the price, time
and
manner
of
payment.
As

by

to

royalty

contracts

many

does

have

not

—

under

as

Law Review11

"When

js
in

custom

them

represents

Texas

the lessee the burden of preserv-

of production.

transactions

was

landowner's
In

not

years

on

sec¬

ing transfers of interest between
It

the

secondary products

owners.

Historically the overriding roy¬
alty was payable out of the work¬
ing interest only; it having been

a

recent

circulated

override

an

8/8 rather than

first

is

year

incentive

producer to change his posi-

In

It

however, to

not commenced within

are

year

drilled

provision

for

per

that

landowners,

quoted

and

market

a

market

income
one.

place

that the payment

sufficient

to

good

the .the oil industry and the standard
direct obli- provision is necessary where in-

some

obtain

a

saved

the

produced."

gas

so

shut-in gas

a

one

usual

terminates if

industry to purchase royalty
lessor-••re¬ /oih^b^diMsion iorder; and upon
veoi^Ietjonr.-'of a producing well,
overriding royalty'

agreed

as

oil

$1,000
may
be
too
high,
lessors believe,
however,

Many

the

of
country

some

the lease form

amend

that the

low,

particular advan-

of
to

seven

the

clause.

and

lessees.

primary

to

If the

very

Rentals

oil and

1/16

asking

which

worked

in

interest

oil

discussed.

viewed,

serves

the

with

to

paragraph
this lease, it is under¬

and

as

it is produced

shut-in gas well.

a

a

difficult,

Under

...

royalty clauses provide a .ations

There are
instances where this provision has

govern¬

the

proportionate
of

stood

long

as

to

as

mar¬

understood

interest

contained

so

the

is

for

clause

ond

from

It

to

the

the

been

be

expense

levies.

provided

herein

of

long

shall

addition

for

produced

of

or

of said min¬

any

produced

in

shorter form is:

term

only

are

land, but

provide

de¬

by landowners."

"In

to

said

be

vehicles

royalty

the

of

to

lessors, at the pipe¬

proportion
A

ha¬

prac¬

from

that the above royalty and

Term Clause

present-day

bendum

and

land;

royalty
other

or

of

described

through which

owned

The Habendum

produced

the

sliding scale provision
a
printed lease form,

a

of

part

of

be

make

lease

payment of $50 or $100 per year

follows:
"Lessors except and reserve for

themselves,

the

of

all

These- sUeatri juay-.be run.frosn.the well
might
be containing gasoline which must
be .shaken out in a treating or

except taxes and

only to the depth
original production.

with

lease

hazards.

override.

as an

mental

tive

Most

favor¬

Usually, how¬

lessors

No

the

resultant

is

distribution

that

would

as

lessor

more

problem if the

a

under

be

tion. In most instances, of course,
the lessee is as anxious as the

pat¬

than

and that our
willing as
producer to sit by and wait
the period of total production

out

lease

favorable

lease,

should

royalty
1/6 and

to

instances

lessor,

development.

new

the

the

the

free

the

of

always

expected.

keted,

with

time

recoveries

be

of

one

the entire life-

over

his cost pattern will be and what
can

provisions

and the operating profit
goes
to me, however, on and on into the
future, the
of an insurance -lessor may be entitled to a
more

sell the gas, and
of $50 per well

livered to the

connection

payable

that

held

would

case

come

distribution

is

particular

during their life-

seems

the

in

that

is

ticularly

royalty

would change it thereafter.

company-lessor, the bargain might
more often be for royalty, i.e., in-

as

overriding

we

It

time.

well

ducer

0{

of income until such time as he
had recovered his exploration
and
development
costs
but
which

landowners

get

from oil income

Just

land

bound

to

Some people would like
receive
most
of
the benefit

sign.

however,
that it can
be
said
factually that many inroads are
being made on the usual Vs-Ys

been

area

income, and the pro-

incentive

the

simply

Tnis is par¬

different "metnods

many

the

ducers have used cash bonuses as

my

pattern.

so

handling gas and disposing of it
it has been found practically imJ
possible to provide a printed form
that is adequate for all situations."
One final thought respecting

distribution

mediate cash

afford to pay.
A
separate paper could be written
on this one
point alone; I think,
can

re"

in

genuity and imaginativeness of .lease; I wish that someone could
the trading parties.
develop
a
sliding scale clause
In the usual situation, the small which would allow the
producer
individual landowner wants im- to maintain the ys-Vs

and that this is about all that the

operator

in

the in-

as

tage of the producer, and

in

profits

our

Had all of

limitless

as

are

variations

the

and

the

minerals

The producer, however, had
have additional land to meet

landowner seems to

average

dry holes. From the lessee's
side, it has been said that the
Vsth royalty takes about
of

to

containing a
originally market¬

condensate not

ing all of the items here discussed
comprehensive than

for

with

as

is much more

margins to

in

losses

if,

and gas

the oil

produced.
The bargaining pattern respect-

the

division

a

when

and

instances
gives

many

y8-7/8

of

out

acre

of

fraction

clients

able.

sand

a

per

I believe

royalty.

as

compli

arise

to nay to the lessor an extra

$100

to

Vs-1/*

many

can

ties are usually payable in monev
certain rather than in kind, Because 0f

agree

is $0.50 to $1 per long
ton (2,240 pounds).
The producers have made a de¬
termined effort to preserve the
royalty

indicated,
questions

i.e., a terminable in- fgard to gas royalty. Mr. R *
terest payable out of production. > Wilkinson,, Jr., has said:io '
As an example, the lessee might
"Unlike oil royalties, gas royal

to

of

case

cated

an

as

payment!,

oil

sulphur the usual

the

in

Tne
much

customary

the

minerals

other

royalty, an additional
Vs of % overriding royalty, of all
oil, gas, casing head gas and other

to

deeper

i-

9 28

wells

to

agreed point below the sur¬

some

gas,

some

from

8 "A- W. Walker, Jr., 'Property Rights
an<* Their Effect Upon

Police

L.

to

to explore

clause

or

or

be

particular depth.
effect of the provision is to

tically

any

owned

should

gas, including casing head
produced, sold and used. On

all

on

few leases which

a

seen

not exceed

the

only
also

it

limit the lessee's right

he

surveys,

herein

the

lease,

other

lessor to

lease,

described

adjoining
the

if

would have had

for the

the

to

standard leasing policy.

as

in

other

pro¬

normally found.

doubt

We have

and

a

point may be of in¬

and

and

Such

favorable

more

more

urged

considera¬
acreage
de¬

the

for

than

lessor

rent

same

cash

the

in the lease.

vision

for

land at the

as

paid

scribed

the

lessor

the

pay

excess

acre

that

discovered

are

per

re¬

that in the event

is made and additional

resurvey

lands

such

forms

lease

the

viewed provides

deeper well.

roads

the
the

which
since

surveys

however,

owns;

ducing and marketing, such as the
right to lay pipelines, store oil,
build tanks and power
stations,
build

paid

rights respecting
particular survey

full

in

terest.

some

of

to

might have

lessee

has

he

all

the

of

He wants to be cer¬

rect amount

One

and

in

that

tain

standpoint

the

oil operator.

are

in mind

! be

The provision in

from

able

sulphur

as

and salt which

-only

will

exists.

minerals"

other

"all

words

lease, whereas the lease itself
cover
more
land, if such

the

question,
W. Walker, Jr., of Dal¬ usually referred to as the Mother
said that in using the Hubbard clause, is highly desir¬

A.

Mr.

delay rentals will have been

usual

above

expressed

is

lessor

trades

royalty provision is
of all of the oil produced
saved from the land and Vs

The

override, extra income

an

the

to

the

paper.

and

acreage

giving

realize,

considerations, grants, leases and
exclusively lets unto lessee cer¬

described lands
of investigating,

leas¬

at the

discussed

further

be

of this

V8

and

one-year

a

ing policy covering such matters
considerations and

no

as

obliga¬

involves many

boundaries,
the
provision
be¬
comes unimportant, but is should

specifically

exceeding

most

in

bargain

direct drilling

a

other land in the immediate area,
and

the primary
exceed three

The development of a

term.

will

survey,

not

Others

cases

company-lessor

If the insurance

has

com¬

that

believe

years.

Insurance Company

as

should

term

years.

desires as
possible. Some

course,

term

a

lessors

Oil and Gas Leases from an

of

lessee,

10

at

standardized

been

Continued

~

Commercial and Financial Chronicle

(2338)

.

granted the right
of lessor's land
How little of

to pool 'any part'
wRh
other land.

!eSS°r'S la"d Can "le
in the pool and still maintain
lease ill its entiretv?
cla,]Sp

clause

nrnvidpq

pooling
'lirodUCtion

The

that

prOVlueS tnai
P
,pnge
On ally part of the pooled aCl^S
,

11 "Some

the
01

and

view
Law

Legal Problems

Pooling
Gas

ISO.

Me

LaWT* '

"Pooling Problems," 28

Review

662.

.

l.v

Presented

Provisions
of the
Leases," 23 Texas

IeX

Number 5486...... The Commercial

182

Volume

and Financial Chronicle

(2339)

shall be treated as if such pro¬
duction was from the land de¬

tionship

scribed in this lease.' If 'any part'
means any part having a reason¬
able relationship to the part con¬
tributed to the pool by the other

lessors, then will that

reason¬
able relationship be on a surface
acreage
basis, or should sand
thickness, porosity, etc. be con¬
sidered? . . .
"Let us' suppose that the lease

lessee to surrender

the

allows

to

each

Lhave

a

been

by

of

the

others.

Continued from page 18

mind it is to be hoped

fine

the

favorably impressed

good

quality of the work
done by the
larger oil companies
in the
development of the unitiza¬
tion

agreements

which

The
oil

unit

field

operation

is

hasty

and

found

in

with

far

a

end

oil

early

resultant

Communist Governments?

a
major
from the

operations

disorderly
the

the

of

cry

shape

tion in America is swift and defi¬

hook

nite.

facture

fields

immeasurable

waste.

of

the

cold

Here

letter

to

is

war."

The

reac¬

sample of it in a
by an old friend in
a

me

blueprints

shop

or

drawings

crook in order

or

to

by

manu¬

Why should he be al¬
lowed full participation since he
has had returned to him a part
render?

of his lease?

"What

equipment in Russia
in disregard of American patent
rights. Now those machines are

rights

of

the

having

lease

ment

pooling

a

variety

common

reserves

clause?
oil

of

pay¬

of

percentage

a

a

the seven-eighths production from

until

lease

the

stipulated

a

sum

problems
arise
involving
the
question whether the lessee un¬
der the pooling clause can pool
oil

or

is

well

a

is

oil

an

What

well?

well

how

so,

determined

be

to

If

separately.

gas

it

whether
or

a

gas

the rights of the

are

parties where the gas

rights

are

pooled and a well is drilled pro¬
ducing

which

gas.

into

turns

lessee

the

"Does

subsequently

well?

oil

an

the

under

pooling clause have the right to
pool
one
or
more
producing
If

horizons?

the

can

so,

lessor's

the

unitize

lease

lessee
to

as

a

particular horizon with one lease,
and
pool
another
horizon
of
lessor's land

leases?"

ferent

other

with

dif¬

and

Law

Texas

23

Review, 150, 158,159,160,162,163.
the

problems
belief that
separately owned

Notwithstanding
which
the

exist, it is

pooling of

will

land

of

tracts

frequent

my

become

time goes

as

on.

more

How¬

from the standpoint of the
lessor, I do not want to execute
a
lease
which
gives the lessee
full
control
under
pooling.
If
ever,

execution

the

after

of

the

lease

pooling operation is deemed

some

advisable, I believe that the par¬
ticular
situation
then
existing
should

both

by

lease and a
agreement
executed.

cific

the

to

which

clauses

general

operations

pooling
the

future

much

are

spe¬

The
the

give

control

unlimited

lessee

in

considered

be

parties

over

presently or
in my opinion

that

The

unit

term

the

in¬

operations

consolidation

of all of the

merger

the

lessor

for

after

these

certainties

or

many

and

un¬

problems

still

of

standard and important

more

interests in

factors
in

the

and

first

local

customs

There

no

be used

can

In

situations.

is

in¬

some

stances it would be to the lessor's

advantage

insist

to

on

early

de¬

In

bonuses.

third

a

the

case,

lessor

might have been better off

if

attempt had

no

the

develop

such

been

and
delay
paid
indefi¬

also

account

into

taken

be

the demand for crude oil

as

and its

price.

affect leasing
stances

All of these should
policy. In some in¬

drilling should be encour¬

operations
is
to
prevent unnecessary drilling, con¬
serve
reservoir
energy
and in¬
ultimate

yield.
Unit op¬
erations 'are many times used in
secondary
recovery
operations.
Secondary recovery plans almost
always involve an entire field or
a- large
part thereof and to a
considerble
degree
surface
boundaries
must
be
ignored in
crease

efficient
subsurface method of operation.
working

the

out

most

Unit operations are always car¬

ried

out

upon

voluntary

a

basis

and

my own Company has exe¬
cuted
unitization
agreements in

two rather large
ness

of

the

considerable

quality

degree

the

The fair¬

depends
•

to

a

the

upon

which

has

,

been done by the petroleum

en-

>)

gineer.
in

of

fields.

plan

work

He must value each

the unit in its

economic




tract
rela¬

we

to

Lenin

and

to

me?

Stalin

shall

I

supply

let

the

to support one coun¬

course

for

show

to

us

our

colors—by coming to the aid
the hundreds of thousands of

of

Soviet

with all

escapees

we

can.

be

per¬

oil

the

companies

use

lease

the

amendment

sions

need

points

him

enables

that

whether

trade

reasonable

a

to

provi¬
and on

days of the oil
operators prided
themselves that their word was as
the

In

business

early

many

their bond. They believed
lease contract couldn't

what

no

has

being

as

paper

the

that

trust

in

critical

word

one

been

.

.

incite

use

will

any

of

con¬

the

of

sense

oil

and

propaganda
of

with
mind.

With

lieve that
12 For

equal fairness, I be¬

we

an

should try to do

excellent

article

on

as

unit

Legal and [Eco¬
nomic Aspects of Unit Operations of Oil
Fields," bv Leslie Moses, 21 Texas Law
Review, 748.
operations,

read

"Some

for

advantage

hour granted

every

in

cumstances

strength

as

(Vol. 17,

pp.

former

the

order

Chekist, Bulganin, for the
of
a
year-old
baby
the following simple and
words
by Joseph
Stalin

war

should

suffice:

bomb,

have

must

no

relation

a

mask

for

deeds.
more

Good words are

concealment

Sincere

of

diplomacy

is

bad
no

possible than dry water or

tivities
FBI

This

and

much

more

new

is

crop

totally
of Rus¬

there.

The

single

a

es¬

of

one

arrested.

ever

was

well

were

who

and

known

wanted

the

to

Russian

of

Freedom,

voluntary

a

organization headed by men like
General
Frank
L. Howley, Ad¬
miral William H. Standley (former

loot

in

the

because

boys

goody-goody

State
Department
thought of dis¬

the

the

at

pleasing "Stalin.
it

Is

that

humble

grown

to

the

as¬

sistance to make doubly sure that
the

when

it must if

come

as

showdown

survives,

gime

and

enemy

does

it

not we

the

Soviet

the

spending millions

dollars trying to force their
repatriation because they are the

living

only

American

survival,
in

thwarted

its

Soviet

of

witnesses

and the threat

barbarism

it

it is to

be
all

must
at

attempts

costs.

should

That
the

who

men

be

our

have

to

answer

the

become

voluntary hocksters of the Krem¬
lin line—resume trading with the
Soviet pirates and

exchange dele¬

q"

—

N.A.S.D. District 13
Elects Governors
At

re¬

will be our
who will be

victorious.

an

election

held

in

District

No. 13 of the National Association

Securities

of

Dealers, Inc.

Harold H. Cook, Spencer,

come,

Soviet

the

that

been

of

the

economic and industrial

more

is

have

needs

of

some

enemy

the

Now

escapees.

is menacing our very lives?

over

to

Government

strong

so

We

servant.

ministering

and
But
some of our
people think that it
is not enough.
That we should
has

enemy

(Wild Bill), and
including
your

others,

many

Wil¬

General

Maxwell,

Donovan

gations.

wonder

any

Admiral

arrest

to

him, returned to Russia with the

hand

unknown to the

military

our

Adams, the top spy of the Soviet
Government, whose dangerous ac¬

to action—otherwise what kind of

diplomacy is it?

not

and

those Russians

trembled

■

"Words

years,

information from

sweetness

frank

During

tablishments, including the atomic

take

Trask

& Co., New York

City, and Charles
L. Bergmann, R. W. Pressprich &
Co., New York City, were elected
as

members of the Board of Gov¬

compromising ernors of the Association from
with and appeasing Communism District No. 13 to replace Allan C.
Wertheim. & Company,
without end; we have been on the DuBois,
defensive for 38 years, and the net. New York, and Roy W. Doolittle,
Doolittle & Co., Buffalo, N. Y. At
result is that we have lost onethe same time, W. Scott Cluett,
third of the human race to Com¬
Harriman Ripley & Co., Inc., New
munist slavery.
York City, Joseph Ludin, Dillon,
If the rest of the world is not
and enslaved Soviet Union.
Read & Co., Inc., New York City,
to be lost to the enemy of God and
Graham Jones, Cooley Co., Hart¬
One
can
forgive
10-year-old
decency, there cannot and must
children
for
not
knowing that
ford, Conn., and Eugene G. Statnot
be any more compromising
there is nothing new about visit¬
ter, Hoit, Rose & Co., New York
with the Communist evil by peo¬
City, were elected to serve on the
ing Soviet missions in this coun¬
ples professing the Christian faith. District No. 13 Committee replac¬
try. It may come as a complete
There can be no co-existence with
ing
Harold
H.
Cook, Spencer,
surprise to those know-nothings
the most barbaric force the world
Trask & Co., New York, Charles
or
Rip
Van
Winkles who are
has ever known. There can never
C. Glavin, The First Boston Corp.,
falling for the fraudulent Soviet be
lasting peace as long as the New
York, Henry H. Hyde, Put¬
delegation exchange ballyhoo to
present Communist rulers in the nam & Co., Hartford, Conn.; John
learn that between 1920 and 1947
Kremlin trod this earth.
There
J. O'Kane, Jr., John J. O'Kane,
no
less than 19,298 Soviet emis¬
will never be an end to the stag¬
Jr. & Co., whose terms of office
saries visited this country. Among
gering taxes weighing us down will expire on Jan. 16, 1956.
them were agriculturists, educa¬
We

have

been

until the enslaved behind the Iron

conduct themselves,
for

and

how

to

how to

what to look
it. And

obtain

with the aid of thousands of sub¬

versives right here as members

of

pieces of our
the interest of the lessee in machinery and equipment, get the
companies, however, trade

1933,"

rapidly as possible."
386-37) Lenin.

and

industry.

The oil

Soviet

In

it by cir¬
to
gain

country against the
carrying on communist

.

To the contrary, I the Communist party or fellowthey got
what they
have a very hi£h regard for the travellers,
without
spending
any
industry and the individual men wanted
At best they would buy
with whom we have had contact. more.
gas

incoming

rather small.

was

1943 to 1947, inclu¬
sive, a total of 8,687 Sovieteers
came
to
our
shores, rifled our
laboratories and our factories, in¬
cluding some^ of the top secret

one

.

.

against the other

one

them had been briefed on

said in this

of

number

Russian

the

for

liam

...

tors, scientists, and mostly tech¬
It has been said that nicians. They all came here un¬
there
are
more
implied conve- der one false pretense or another,
nants
in
connection
with
the mostly to buy our machinery and
modern oil and gas lease than any
equipment.
But every
one
of
I

our

bad

American Ambassador in Russia),

a

background.

strue

Mistake

lamentable recogni¬
tion of the Soviet regime in 1933,
spies

is

Kremlin

people and also bad for us.
For the past five years there
has
been
a
little
organization
known as the American Friends

1935, 556 more came in.

be

origin out of that philosophy and

other business instrument.

A

Up to

Soviet .Govern¬

the

reason

ment wants them back is because

is to

would

Congressional
scouts to bring in information, it
is my belief that those of us rep¬ junketeers, full-blown experts on
Russia after drinking a few vodka
resenting the lessor should visit
toasts and speaking to a few of
the
oil
fields, talk with other
the Soviet officials whose hands
landowners,
the
local
bankers,
are
dripping with the blood of
engineers,
lease
brokers
and
Russia's
millions slaughtered in
geologists.
We should visit the
order
to
keep
the
Communist
offices of the major oil companies
Party in power, are counselling
and
talk
with
the
independent
greater trade and more delegation
operators in the field.
It 4s in
exchanges between free America
this manner that one acquires the
know

of

The

example, a total of 125 Soviet
landed here. But the fol¬
lowing year, 1934, 498 arrived, in

days

knowledge

representatives

mitted to fall into the Soviet trap.

snoopers

another

sian "experts" who are returning
from the Soviet Union after a few

as

citizens

should

them

of

one

against Communism.
The
practical task of Communist policy

against

crime

lessor.

Just

best

our

Russian Recognition in 1933

the

answer.

for

the

to

the enemy camp.

interpret

wooden iron."

possibly cover all of the contin¬
gencies which might be involved.
The Producers 88
lease had its

The pur-

the operator.
unit

are

those

are

others, drilling might
take place independently of any
action
taken
by the particular
in

aged;

the

as

what

fashion

knees

up of the high
officials," as my Texas

wrote

factors

General economic

nitely.
must

land

had

rentals

as

of

he

"softening

<

Soviet

made to smile,

been

that

parties

when

And
for
those
gullibles
and
velopment of the land through
drilling obligations, and the trade simpletons who take seriously the
should be for royalty.
In other soft words of a Khruschev and
situations
the best trade is for mistake the hyenic smiles of a

good

pose

the

Next, it must be
other
no leasing policy

that

right approach which
all

a

thing is to be¬

inflexible.

be

can

How

.

practices.

understood

tenets?

leasing policy,
the corporate try

familiar with

come

And

where

The

states.

con¬

be dealing in several

may

tenets.

"Of

comprehensive
particularly

bb

must

development of

1
'•

confirm this

friend

provisions.

Many

in

years

particular pool or reservoir and
j the designation of one or more
a

Khruschev

my

in connection with many

exist

the

is

might be made.

Unit Operations

volves

It

what

broad.

too

chance

a

true

they are a genuine threat to the
security of the regime.
But, as
said before, what is good for the

lessor

above, nice

is

who have fled
tyranny. There

Communist

from

to bow their heads and bend their

of

.

implied ob¬ told us that we might as well wait
hope that for the shrimp to whistle as to
enough has been said to indicate expect them to change their basic

sidered

to the

the Soviet escapees

ligations.

payment by pooling the lease but

addition

bending all its efforts to persuade
the free nations to help repatriate

breach of the lessee's

lease

"In

*

The Soviet Government is now

the

remedies

has been realized. Can
the lessee-operator avoid the oil

the
the

Iron

the

Not

of money

drilling upon a tract within
pooled area not affected by
oil payment? . . .

the country at

roamed

behind

enslaved

Curtain.

will, sup¬
plied with interpreters by the
Soviet trading agency here, Amtorg, whereas today it has become

.

the

.

the

of an oil payment under

owner

The

.

.

are

default, equipment recovery, pro¬ is coming to a close
."
portionate reduction, the dry-hole
Nothing, of course, is farther
provisions and clauses governing from the truth. We have heard

the

the

Texas:
part of his leased premises. He
Concluding Remarks
established a pooled area, and
"With the recent approachment being sold all over the world in
This discussion would be ex¬ between
subsequently - surrenders,. a part
the
U.
S. A.
and
the competition with the rightful pat¬
of the undrilled lease.
Can the* tended beyond reasonable limits
USSR, and the general softening ent owners.
lessor
under
the
surrendered if I were to attempt to cover up of the
The
only difference between
high Soviet officials
'.lease claim royalty participation clauses
the Soviet missionaries prior to
dealing with rights of towards other European
coun¬
as
if there had been no sur- assignment, warranty, notice of tries, it looks as if the cold war 1947 and today is that the former
,

not

tions; not to visit their soil, and to
stop being on the offensive; to
cement a bond of friendship with

has

,

possible:

form, under any circum¬
to exchange delega¬

or

stances;

seen.

conclusion

Not to deal with the enemy in any

have

we

only

that their

will lead them

common sense

the

to

Should We Trade With the

35

samples

of various

Curtain
never
as

are

There can

liberated.

be spiritual progress as

(Special to The Financial Chronicle)

bing with the murderers of untold
millions of men, women and

dren,

as

long as men without cour¬

age, without honor,
vision are ready to
a

chil¬

and without

Hassenpflug, Jr. is now associated

Trading
times of

war

—treason.
ment

with

surrender to
the

Joins King Merritt

is

The

declared

non-Communist

a

(Special to The Financial

the enemy in
criminal offense
Soviet
war

Govern¬

against

nations

on

all
Dec.

standpoint.

our

masses

of people keep

this in

of

St. Louis.

1

ST.

PETERSBURG,

ritt & Co., Inc.

Chronicle)

Fla.—Geo.

with King Mer¬

N. Mullins is now

In the past he was
Libaire, Stout

with Eisele & King,
&

Co.

With H. C. Wainwright

a

lessor's

Slayton & Company, Inc.

with

of Russia.

government

Mo.—Arthur A.

KANSAS CITY,

barbarian force calling itself

24, 1917—five weeks after coming
job for the lessor, and it to power. That war has been rag¬
is my hope that some of the ma¬ ing against us ever since, and it
terial contained in this paper will will never cease. It will be waged
different
ways
at
different
be of help to you in approaching in
the
leasing
problem
from the times to suit their expediency. If

good

Slayton Adds to Staff

long

of the spirit are hob-nobr

men

(Special to The Financial

PORTLAND,

Briggs
T-T

P

is

now

Maine

Chronicle)
—

Ezra J.

connected

Wainwright.

&;

Co.

with

36

The Commercial

(2340)

Continued

from

4

page

.

.i
.

* -*1

,

The State of Trade and

Industry

both up more

than $5 from

of higher

hourly pay and a 1.3 hour stretch-out in
the heftiest October-to-October gain in the

—was

the work week
postwar period,

the Bureau pointed out.
In the automotive

industry scheduled

and truck output in

car

* Retailers

consumer

as

shoppers

declined 15.6% last week due to the Thanksgiving

holiday, but the daily rate of operations increased 5.5%, "Ward's
Automotive Reports" stated.

"Ward's," in counting

decline to 174,322 car and truck com¬
pletions from a near record 206,536 in the preceding week, said
the daily rate of car building alone (averaged over a 5-day week)
.

,

actually

increased

37,750

to

gain of 5.5%.
Thus reflected,

a

from

35,800 over the two weeks, a

Last

week's

by 27,780

The
tail

statistical

agency

said,

is

The

last week

trucks.

baker-Packard Corp. plus increased use of

Saturday work by some
companies to recoup output losses suffered earlier in the month.
Scheduling Saturday operations last week were Chevrolet,
Ford at all of its car producing plants, plus Buick, Cadillac,
Plymouth, Studebaker and others. Meantime, Mercury did not

and

program Friday assembly
its four plants.

the holiday-shortened week ended Nov. 24 from 214 in the

"Ward's"
down

of

week's

production

car

broken

was

General Motors Corp., 26.0%

Ford Motor
Co., 19.1% Chrysler Corp., 1.8% American Motors Corp. and 2.5%
Studebaker-Packard Corp., indicating the distribution of current
as

Holiday Week

they

prewar

level, the toll

exceeded

173

the
was

of

Continuing

below

down 19% from the 252 in the

Underscoring the merchandising task facing the industry,
States plants are scheduling some 2,172,000 of the 1956
model cars for completion by Dec. 31, 1955. :
The total, "Ward's" said, is 65% more than the 1,312,000 new

oc¬

1955 models completed by the same time in

off of 1956

of

$100,000

as

be
by the time Jan. 1 rolls around.

even

of

volume

The

worn

may

building

permits

expanded

sales

car

slightly

during

October, reports Dun & Bradstreet, Inc. The estimated cost of
permits in 217 cities (including New York) last month amounted
to $487,413,821, an increase of 2.2% over the $477,025,801 for Sep¬
tember, and a rise of 5.1% over the $463,728,026 for October a
year

ago.

Building plans filed in New York City during October came
to $44,087,975. This was a drop of 24.2% from September's $58,177,460, but a gain of 43.3% over the $30,760,116 for October

two cents

if

current

production

continues.

Output now» totals
105,530,000 net tons of steel for ingots and castings, states "Steel,"
the weekly magazine of metalworking.
The heavy demand for steel is
influencing consumers to make
the most of government ratings, it notes.

Producers

are

carefully

scrutinizing all requests for rated tonnage.
Higher prices are cropping up here and abroad, "Steel" adds.
Jones & Laughlin put a $6-to-$20-a-ton raise in price extras on

junior beams and junior channels.
chant bars

prices

Base prices on rail steel

raised $2 a ton by three steel companies.

were

mer¬

Import

most major steel products from Western Europe are up
$2 to $11 a ton. Imported steel plate is $50 a ton over the home
product.
on

Steel

producers in the week ended Nov. 27 maintained ingot
operations at 99% of capacity for the third consecutive week.
"Steel's" price composite on finished steel remains at $128.14
a net ton.
Marking the fourth consecutive week of rise, "Steel's"
price composite on steelmaking scrap rose to $46.33 a gross ton—
highest since January, 1951, the Korean War period. The latest
increase

66

was

The

cents

American

ton.

a

Iron

and

Steel

Institute

announced

that

the

operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of 99.2% of
capacity for the week beginning Nov. 28, 1955, equivalent to
2,394,000

tons

of

ingot

and

steel

for

castings

as

compared

with

100.1% of capacity and 2,416,000 tons (revised) a week ago.
The industry's ingot production rate for the weeks in
1955 is
based on annual capacity of 125,828,310 tons as of Jan.
1, 1955.
For the

duction
was

like week

2,400,000 tons.

placed at

month ago

a

A

year

ago

the rate
the

was

actual

99.4% and

pro¬

1,941,000 tons

or
81.4%. The operating rate is not
capacity was lower than capacity in 1955.
percentage figures for 1954 are based on annual
capacity of
124,330,410 tons as of Jan. 1, 1954.

comparable

because

Electric Output Recedes
Record of

Slightly From Ail-Time High
Preceding Week

The amount of electric
energy distributed by the electric light
and power industry for tne week
ended Saturday, Nov.
26, 1955
was
estimated at 10,727,000,000
kwh., a moderate decline from
the all-time record
high point for the industry reached in the

prior

week, according to the Edison Electric Institute.

output declined 422,000,000 kwh. below that of
the previous
week, when the actual output stood at
11,149,000 000
*wh ; it increased
1,640,000,000 kwh. or 18.0% above the com¬
parable 1904 week and
2,589,000,000 kwh. over
the

in

1953.

like

week

supply

and wheat

prices from those areas have been boosted somewhat.
Export deals have developed with Brazil and Israel for the sale of
liberal quantities o'f surplus wheat. Corn advanced
slightly a week
government

Loadings Drop 3.1% Below

Loadings of
decreased 24,984

revenue

freight for the

19, 1955,




week

a

somewhat higher demand and

marketings.

corn

past week.

level

of

moderately

the

last year.

compara¬

Buyers

con¬

tinued to re-order Christmas

mer¬

chandise,

interest

and

in Spring

apparel increased considerably.

Department
Federal

sales

store

country-wide basis

Board's

Reserve

dex for the

week

on

an

increase in

However, industry buyers

were

in¬

ended

in¬

Nov. 19,

period of last year. In the
preceding week^ Nov; 12, 1955, an
increase of 8% (revised) was re¬
ported. For the four weeks ended
"
•

-

Nov.

19, 1955,

increase of 6%
period Jan.

an

recorded.

was

For the

1, 1955 to Nov. 19, 1955,
7%

1954.

*

Retail
York
pace
a

gain of

a

registered above that of

was

^

City

\

in

New

week

kept

volume

trade
the

past

with sales for the like period

year

the

notwithstanding

ago,

heavy volume of purchases stem¬
ming from John Wanamaker's going-out-of-business sales in

1951.

Trade

last week's sales would be 1 or

corn.
In soybean
selling sparingly, while processing interests
had previously accumulated liberal
supplies and were not affected
by the past week's lessened supply.

were

prices advanced in the week, while trading was routine
bookings dropped moderately. Buyers are reported
waiting
for a considerable drop in price.
Bakers and jobbers decreased
their orders during the
week, as they had accumulated ample
stocks in previous weeks. The
Accra-grade quoted price in cocoa

slightly and considerable trading activity
majority of bookings were those of dealers.
rose

developed.

The

sibly equal to the

According
serve

store

Coffee remained

The political situation in Brazil had
little influence

on

con¬

Board's

19,
of
like period of last year.
In
preceding week, Nov. 12, 1955,

1955,
the

an

increase

ing Nov.

trading this week.

1955

137,000

bags, to Europe 112,000, and to all other destinations
43,000. Hog
prices continued to fall last week and
trading was active at the
new low levels.
Lard prices were
steady, but moderately below
of the similar period

the

level

demand
cotton

mence

attributed

was

year

ago.

a

was

supply

a

slight rise in cotton prices the past
week, and
slightly above that of last year. An increase in

was

may

to

tighten

the

belief

by the

of

many

buyers

An

uncertain

official

29.

For

Government

report

issued

a

compared

period,

year

and

with

875,000

on

707,000

in

consumed

Friday

the

in

reported

period
the

corresponding

ended

preceding

four

Exports continued to fall considerably behind those of
last
weekly period ended on Tuesday of last week
estimated at 46,000 bales

74,000 in the

week

'

ago.

the

were

and

This

week

cars or

the

as

737,000 bales consumed by mills in the four week
Oct.

that

middle

of next year.
Other
to the government
selling policv to com¬
after the end of the
year.
were

same

as

(revised) was

6%

to

For

the

Nov.

19,

recorded
of

the

rise

a

of

from that
period oi

1%

corresponding

1954.

2 With

Palmer, Pollacchi

(Special to The Financial

Chronicle)

Mass. — Edward L.
Cooper and O. George Dillon have
joined Palmer, Pollacchi & Co.,

BOSTON,

84 State Street.

With Schirmer,

Atherton

(Special to The Financial

Chronicle)

Mc-

BOSTON, Mass.—David D.
Neish

has

affiliated

become

Schirmer,

against 44,000 the week previous

end¬

change oc¬
period Jan. 1,
1955, the index
no

Atherton

&

year

exports

week last year.

of

19, 1955,

curred.

Shipments from Brazil for the week ended last
down to 292,000 bags compared to
337,000 in the
week.
Shipments to the United States totaled
were

There

City for

period ended Nov.
declined 5% below that

Saturday

those

department

York

recorded. For the four weeks

coffee

sales.

Federal Re¬

index,

in New

sales

ago

year

the

to

2%

and pos¬

the weekly

the

at the level of the prior
week, but was
siderably below that of the corresponding period last
year.

estimated ;that

observers

at most behind last year,

Flour

and

previous

a

taken from

as

trading, farmers

Week Ago

3.1% below the
preceding week, according
to the Association of
American Railroads.

ble

the

was

different to accumulating additional
supplies of

period

week ended Nov.

of

a

1955, increased 6% above that of

was
a
fractional decline in the price of wheat and
dropped somewhat. Dry weather has curtailed the wheat
from Winter wheat sections of the West and Southwest

ago as a result

to

the like

There
demand

volume

the

orders

volume

above

index, compiled by Dun

Leading grain markets reported steady prices the past week
trading in most commodities was moderately active.

live

Car

wholesale

Narrow

Bradstreet, Inc., fluctuated within a narrow range last week
closing at 274.97 on Nov. 22. This was slightly above the 274.69
index of the prior week, but was
noticeably below the 277.77 index
of tne comparable date last year.
as

furniture

considerably above that of
preceding week.
There was a slight increase in

Week

Past

and

bedding

and

the

&

buyers

week's

the

The daily wholesale commodity price

weekly production

The

This

Trend

That record of 111,609,719 tons will be eclipsed at mid-

December

a

towels

level

prices at the wholesale level.

Wholesale Commodity Price Index Showed

increased

linens,

suites

boosted

the

Steel production continues its record-breaking pace. Producers
more steel than in any year except record-break¬

have turned out

accessories.

sought

of

Sales of

Total

is to show the general trend of food

volume,
jewelry
and

popular

were

bedroom

ago.

year

Winter

draperies the past week.

The index represents the sum total of the price
per pound of
raw foodstuffs and meats in general use and its chief function

31

ing 1953.

a

and

an

fur-

,

Higher in wholesale cost the past week were corn, rye, oats,
butter, sugar, coffee, cocoa, beans, eggs, steers and lambs. On the
down side were flour, wheat, barley, beef,
hams, lard, cottonseed
oil, potatoes and hogs.

last year.

Steel Output Placed This Week at 99.2% of Capacity

time

was

women's

coats

Consumers

was touched two weeks
down 12.1% from the figure of $6.85

was

There

for

cloth

quantities

afyove the five-year low which

The current index

this

at

call

handbags,

gloves

There was a mild dip last week in the wholesale food price
index which is compiled by Dun & Bradstreet, Inc. The Nov. 22
index turned down to $6.02 from $6.04 in the prior week and was
ago.

in¬

Winter

Sweaters, knit dresses and

while

against 21 last week.

Wholesale Food Price Index Dips Mildly in Latest Week

men's

woolen skirts increased in

Small failures with liabil¬

$5,000 dipped to 31 from 35 in the preceding week and
41 in the corresponding week of 1954. Nineteen businesses failed
excess

reported

in

noticeably.

trimmed
suits.

ities under

with liabilities in

retailers

volume

increased

com¬

1954, the implication

being that much of the glow

week ago and 185 last year.

a

+1

to -j-5; South and
+3 to +7; Middle West
+8 and Southwest +5 to

vanced

the

parable week of 1939.
from 179

varied

1954

clothing, with principal gains in
overcoats and heavy suits. Inter¬
est in boys' Winter
clothing ad¬

pre¬

Although failures

last year when 226

1953.

in

estimates

comparable

East

creased

Failures involving liabilities of $5,000 or more declined to 174

United

:

similar week

the

curred,

output.

according
by Dun & Bradstreet

Regional

4-9%.
Apparel

industrial failures dipped slightly to 205 in

and

was

year ago,

the

4-4 to

lower than in

were

a

Northwest

659 trucks.

Business Failures Ease in

retail
Wed¬

2 to
6%

+ 4;

week Dominion

ceding week, Dun & Bradstreet, Inc., reports.

this

reported

follows: 50.6%

any

previous

Commercial

of

levels
by the following percentages: New
England and Pacific Coast 0 to

was

tempo of 1956 model output at American Motors Corp. and Stude-

at two nor Saturday output at

the

at re¬

on

Inc.

placed at 6,171 cars and 851
plants built 6,109 cars
823 trucks, and for the comparable 1954 week, 3,803 cars and
In

volume

from

year ago.

a

volume

"

dollar

to estimates

Canadian output

increasing

an

dollar

nesday of last week

1

the

total

was

higher than

reported there were 22,852 trucks made
This compared with 27,286 in the previous

the United States.

and

trade in the period ended

output fell below that of the previous week

car

18,486

Thanksgiving

apparel lines.

assembled.

week and

week

stimulated by

.

Last week the agency

in

increase

retail stocks low in many
gift and

In the corresponding
were

were

moderately above that of
the similar period last year
with

and truck output by 4,434 vehicles during the week.
week last year 111,916 cars and 18,486 trucks

cars,

an

Christmas sales promotions.

"Ward's Automotive Reports," declined
15.6% from the preceding week due to the Thanksgiving holiday.
Last week the industry assembled an estimated 151,470 cars,
compared with 179,250 (revised) in the previous week. The past
week's production total of cars and trucks amounted to 174,322
units, or a decrease of 32,214 units below the preceding week's out¬
Nov. 25, 1955, according to

put, states "Ward's."

Sales

spending last

intensive

more

latest week ended

Moderately

reported

in

Declined 15.6% the Past Week
Thanksgiving Holiday

-

domestic plants

Lifted

Week

mas

U. S. Automotive Output

Output in the automotive industry for the

Past

1, l95Sf

by Intensive
Thanksgiving and Christ¬

•

with none,

This gain—the result

earlier.

year

a

the

,

sponding week in 1953.

Due to the

Volume

Trade

Loadings for the week ended Nov. 19, 1955, totaled 771,648
increase of 74,302 cars, or 10.7% above the corresponding
1954 week, and an increase of 45,916 cars, or 6.3% above the corre¬

than in any previous month, the Labor Department re¬
ported. It estimated after-tax earnings at $72.18 a week for a

Thursday, December

. •.

cars, an

power

worker with three dependents and $59.84 for a worker

Chronicle

and Financial

Congress

changes.

Co.,

and
•

■

•

Boston
>

■

^

of the
Stock Ex¬

Street, members

New York

with

Number 5486

182

Volume

.

.

The Commercial and Financial
Chronicle

.

(2341)

Indications of Current
Business Activity
IRON

AMERICAN
incucaied

AND

STEEL

operations

Bieei

PETROLEUM

AMERICAN

oiJ

(net tons)

-Dec.

una

(bbls.

18

(bbls.)

Residual

ASSOCIATION

OF

Re/enue

18

—Unov'
fines—
—Nov

Nov!
—Nov!

at
at

—II—Nov!

AMERICAN

ENGINEERING

18

Nov

Ago

*100.1

§2,394,000

CONSTRUCTION

that date,

in

or,

of quotations,

cases

BANKERS'

DOLLAR

ACCEPTANCES
STANDING—FEDERAL RESERVE

1,941,000

OF

NEW YORK—As of Oct.

6,808,050

7,553,000

117,657,000
26,310,000
2,351,000
11,948,000

18

7,477,000
26,084,000

25,806,000

2,278,000
11,091,000
7,825,000

8,242,000

18

6,752,650

$257,806,000

153,580,000
35,144,000

7,016,000

2,253,000
10,813,000
7,717,000

Based

on

goods

foreign

stored

and

18

18

152,084,000

151,536,000

35,762,000
150,606,000

148,661,000
45,293,000

147,224,000
36,155,000

36,844,000

45,761,000

149,886,000
46,641,000

BUSINESS

55,872,000

(no. of cars)__Nov. 19

834,499

87,470,000

FAILURES—DUN

681,992

699,051

&

86,976,000

55,317,000

$670,700,000

$687,252,000

BRA.DSTREET,

Manufacturing number

180

number

168

189

611,782

85

99

91

number

437

366

414

Construction number

697,346

662,109

71,829,000

$661,627,000

Wholesale
796.632

32,820,000

148,286,000

INC.—Month of October:

135,353,000

771,648

192,959,000

$207,286,000

between

countries

Total
18

11,575,000

99,261,000

33,250,000

shipped

8,951,000

71,744,000

Domestic warehouse credits——
Dollar exchange
i—

189,329,000

10,195,000

—II—II

shipments

$253,363,000

211,162,000

Domestic

23.525,000
2,485,000
11,121,000
8,027,000

Ago

BANK

;

6,264,950
"

Year

Month

31:

!

_j

Previous

OUT¬

Exports
6,851,100

of that date:

are as

Month

81.4

2,400,000

either for the

are

Latest

Nov. 19

136

114

109

Retail

Commercial

ENGINEERING

—

Dates shown in first column

Ago

99.4

*2,416,000

production and other figures for the

cover

Year

RAILROADS:

freight loaded (number of cars)
freight received from connections

rievenue

CIVIL

(bbls.)
(bbls.)

oil

18

Nov

at

oil

fuel

18

Nov

Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)

Distillate fuel

Month

Week

on

Imports

Nov

Stocks at refineries, bulk terminals, in transit, in
pipe
Finished and unfinished gasoline (bbls.) at
Kerosene

4

month ended

or

Previoui

§99.2

month available.

of

42 gallons

,

4

or

INSTITUTE:

condensate output—dally average
each)
Crude runs to stills—daily average (bbls.)
Gasoline output (bbls.)
Kerosene output (bbls.)
Cruae

week

Week

Dec.

following statistical tabulations

latest week

Latest

INSTITUTE:

(percent of capacity)

Equivalent to—
Steel ingots and castings

The

37

__

service

number

81

75

68

919

822

871

$10,407,000

$10,798,000

$7,547,000

2,416,000

7,147,000

2,923,000

9,586,000

8,253,000

11,845,000

8,713,000

4,256,000

4,733,000

3,655,000

2,666,000

1,952,000

$34,777,000

$33,120,000

$29,000,000

10,698

11,024

9,852

$547,000

$564,000

$762,000

3,182,870

3,117,739

2,964,639

NEWS-RECORD:

U.

Total

Private

Total

construction

S.

Nov. 24

coal

Bituminous

S.

STORE

ELECTRIC

Electric

-

FAILURES

IRON

AGE

87,792,000

29,945,000

13,695,000

Commercial

*9,850,000

9,760,000

9,070,000

575,000

565,000

489,000

625,000

142

*141

133

Construction

(E. &

Total

INDUSTRIAL)

DUN

—

10,727,000

11,149,000

10,659,000

205

214

230

226

ERAL

CROP

PRICES:
5.174c

Nov. 22

5.174c

$59.09

5.174c

$59.09

$45.83

Louis")

(St.

Zinc

$59.09

$56.59

Corn,

$32.83

Wheat,

MOODY'S

BOND

42.750c

29.700c

43.625c

43.400c

31.525c

Nov. 23

99.125c

98.375c

Nov. 23

at

PRICES

15.500c
15.300c

15.300c

Nov. 23
DAILY

95.875c

15.500c

Nov. 23

___

at

13.000C

♦

13.000c

r

11.500c

Rice

'94.80

94.93

Nov. 29

107.62

107.80

107.62

Aaa

110.70

Nov. 29

110.88

111.25

111.25

115.43

Hay,

Nov. 29

109.42

109.60

Hay,

Aa

,

95.98

Railroad

Cotton

99.00

Public

Industrials

MOODY'S BOND
U. 8.

YIELD

DAILY

grain

alfalfa

105.00

106.21

106.04

109.06

107.80

107.98

107.98

111.25

108.88

109.06

108.88

112.00

Aa

2.57

3.12

3.10

3.10

2.88

..Nov. 29

A

3.20

3.19

3.19

3.30

3.29

3.32

Railroad
Public

Group
Group
Group

Industrials

MOODY'S

Production

Percentage

AVERAGE

.

=

398.4
.

214,122
294,652

Nov. 19

at end

of period

REPORTER

Nov. 19

PRICE

249,427"
,•

104

"599,443 '

f,

292,172

102

•

106.98

107.06

106.79

DEALERS

AND

SPECIALISTS

ON

N.

Y.

■

.

Dollar

value

5

Customers'

short

991,607

1,167,614

977,420

$56,370,657

$51,206,914

$61,502,506

$47,336,781

Other

7,015

4,793

5,967

SALES

AND ROUND-LOT

ACCOUNT

round-lot

Short sales

5

831,701

779.535

939,232

OF

ON

THE

N.

Y.

(tons)—

$42,741,072

$38,548,591

$50,456,939

$41,411,831

(tons):

States)

MEMBERS

213,900

208,600

217,180

255,970

218,900

208*600

217"l80

.255,970

429,190

409,290

472,810

361,530

5

5

FOR

ACCOUNT

OF

OF

—

10,390,490

*142

146

♦142

RESERVE

n

.

126
-

130

1,253,670

1,181,490

1,573,220

209,440

224,820

1,038,600

986,770

1.413,680

1,196,210

1,638,500

248,900

299,370

307,630

22,200

20,300

24,200

35,608,000

76,312,000

67,885,000

J8,^7,ooo
81,935,000

71,605,000

74,131,000

$421,191,000

$442,123,000

$394,119,000

£11,190,000

£41,756,000

£18,426,000

31,800

235,570

256,440

321,160

274,960

257,770

276,740

345,360

306,760

-

CAPITAL

MIDLAND

ISSUES IN GREAT BRITAIN—
LTD.—Month of October

BANK

SELECTED INCOME
RYS.

ITEMS OF U. S. CLASS I

(Interstate Commerce

Commission)—

Month of August:

405,385

442,334

504,134

Nov.

78,680

54.650

65,920

62,710

Other

Nov.

500,950

435,947

505,407

401,010

Nov.

579,630

490,597

571,327

463,728

Nov.

2,021,470

1,872,724

2,376,724

2,097,275

sales

Total sales
Total round-lot transactions for account of members—
Total purchases

284,390

314,940

1,775,120

1,679,157

2,240,247

Total

2,555,187

1,963,547

Income

after

Commodity Group—
111.1

111.1

109.5

84.6

84.3

86.5

91.9

Nov. 22

98.4

*98.8

98.9

Nov. 22

73.1

74.5

77.4

3,211,647

65,533,394

*4,670,450

44,212,918

119.2

*119.2

118.7

114.5

income

& equipment)

common

stock——___

^
. —

_

_

_

aoq

33,998,037

19,998,880

21,150,303'

taxes

appropriations.

2,979,538

21,871.146

785,135

4,536,959

84.1

Nov. 22

fixed charges

68,512,932

103.2

Meats

100,235,458

44,605.748

On

111.1

3,543,270

107,220,581

72.391,333

Federal

Nov. 22

3,542,598

*17701*

Dividend

Nov. 22

103,778,728

75,602,980'

Depreciation (way & structure

OF

products
Processed foods

19,656,414

110,763.179

ot^ ^^ions —90;608;958

100):

Farm

S'Sn

4,308,650
125,378,055

from income-

available for fixed charges

84,122,314

18,151,066

——

income

Miscellaneous deduction

1,798,578

2,070,280

92,612,113

1?q

-i

a

2,193,118

Nov.

income

income

Other

394,540

295,160

Nov.

sales

Net railway operating

Income

Nov.

Short sales

Total sales

S^DEPT.

8,662,000

36,983,000

1,422,630

286,960

39,154.000

9,062,000

»l7J7,uuu

Total

1,122,600

1,232,880

$168,679,000

48,500,000

8,674,000

300,030

480,840

U.

—

dividends

Policy

1,3$4,260

194,280

floor—

—

—

Surrender values

Nov.

SERIES

$199,661,000

44,42J,uou

Disability payments
Annuity payments

Nov.

off the

INSTITUTE

Matured endowments

Short sales

All

All

commodities

commodities

other

than

farm

and foods

On

♦Revised

§Based on new annual
789,000 barrels of foreign crude runs,
of Jan. 1, 1955, as
against Jan. 1, 1954 basis of 124,330,410 tons.
tNhmber of orders not reported since introduction of Monthly Investment Plan.

figure.

filncludes




capacity

of

preferred stock
fixed charges

'

q7

3.39

3.16

$11,820,500

$21,050,400

Ratio of income to

TREASURY
RECT1
OF

as

1.66

Death benefits

10,940,470

NEW

:.

NEW

1.93

PAYMENTS TO
OF LIFE

INSURANCE—BENEFIT

10,734,290

Nov.

=

2.03

*1.72

OF GOV¬

—

11,164,190

Nov.

(1947-49

$1.81

—

9,217,160

Nov.

PRICES,

39.2

$1.90

INSURANCE—Month of September:

540,980

Nov.

—

40.4

♦40.2

142

FEDERAL

THE

9,624,490

429,900

floor—

purchases

LABOR

39.9

*41.5

goods

10,315,750

407.330

Nov.

the

sales

WHOLESALE

65.07

*40.9

OF

goods

408,140

Nov.

purchases

Other

77.97

41.2
41.6
40.5

DEPT.

;

Seasonally adjusted

MEM¬

Short sales

Total

$72.22

*84.25
*69.14

$1.91
2-°4
i-?2

S.

—■

Unadlusted

.Nov.

initiated

♦$77.71

HOURS—WEEKLY

October:

goods

POLICYHOLDERS

Total sales

transactions

90,510

1,018

SYSTEM—1947-49=100—Month of October:

LIFE

sales

Other

89,800

$78.69
84.86
69.66

AND

Nov.

Total sales

155

91,550

.

■'

goods

ERNORS

(SHARES):

Total purchases
Short sales

Other

"

1.069

(barrels)—

INDUSTRIAL PRODUCTION—BOARD

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered-

Total

206
Jy.

'

J

5

2,5:a

vf

1,049
—

Nov.

on

258

ESTIMATE—U.

Nondurable

sales—

Other transactions initiated

258

(5 States)

9,907,610

Other

270

manufacturing

Durable

STOCK

,

TRANSACTIONS

270

STOCK TRANSACTIONS

Total sales

ROUND-LOT

30,434

3,^4

—

Hourly Earnings—
All manufacturing

908,404

5

Nov.
;

61,316

3,133

'

Nondurable

10,158

Nov.

-

109,512

59.539

33,363

goods

Durable

918,562

5

All

dealers—

Number of shares..

FOR

945,199

Nov.

£

by

TOTAL ROUND-LOT STOCK

Total

784,328

Nov.

sales

purchases

"EXCHANGE

838.716

Nov.

Short sales

Round-lot

5

Nov.

Dollar value

Round-lot sales by dealers—
Number of shares—Total Sales-—

107,323

50,539

Hours—

1,033,314

Nov.

sales

;

106.43

Nov.

Customers' other sales

14,091
43,363

104,813

—.—

Nondurable goods

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

7,481

12,176

:

30,143

EARNINGS

Durable

Nov.

-

2,236,408

37,108

—

Weekly Earnings—
All manufacturing

5

29,880
"

37,108

(bushels)

crop

LABOR—Month of

STOCK

Nov.

—

7,056

—

(pounds)

FACTORY

EXCHANGE —SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—f
Number of shares

7,056

(tons)—.__—

12,474

(3

AVERAGE
Nov. 25

35,593

2,308,028

94

389,624

,

INDEX—

100

356,031

387,334

36,101

:—

(12 States)

Pecans

102

383,771

.

(tons)

257,148

598,836

342,795

1,023,070

2,277,709

Cherries

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

_—

374,816

1,749,825

(bushels)

Grapes

Cranberries

680,461

3,484

371,898

(bushels)

commercial

214,944
■

18,899

2,833

-

Pears

410.1

240,944

295,930

18,954

2,833

Peaches (bushels)

3.06

r,//-402-3:Y.

(bushels)

(pounds)

Apples,

"

Nov. 19
Nov. 19

DRUG

3.23

3,052

19,094

(pounds)

Apricots

activity

GIL, PAINT AND

3.22

402.6
j

.

(tons)

Hops

3.10

3.23

27,579

4,875

Sugar beets (tons)

3.22

3.28

49,328

26,731

4,875

1,738,725

Sugarcane for sugar and seed

3.45

3.39

3.28

ASSOCIATION:

(tons)
of

3.59

3.38

3.29

Nov. 29

-

(tons)

Unfilled orders

3.59

3.39

Nov. 29

INDEX—

PAPERBOARD

received

194!)

I

COMMODITY

NATIONAL
uruers

i

3.59

Nov. 29

Nov. 29

.

Utilities

52,703

26,731

(tons)

(pounds)

Tobacco

3.14

Nov. 29

10.184

(tons I!_______

Sweetpotatoes

3.04

Nov. 29

'

Baa

9,839

Soybeans for beans (bushels

3.13

Nov. 29

13,696
104,380

Beans, dry edible (100-lb. bags)
Peas, dry field (100-lb. bags

Potatoes
3.80

204,087

13,928
109,908

52,703

106.04

lespedeza

228,695

14,843

(tons)

Hay, clover and timothy

Hay,

3.30

226,599
109,908
9,939

112.37

3.29

58,853

(tons)

110.52

2.88

23,688

41,534

50,233

—_

107.27

3.30

28,448

42,985

52,446

.

102.63

2.89

370,126

(bushels)

109.60

Nov. 29

386,551

1_

bag)

102.63

Nov. 29

1,499,579

386,551

(tons)

Peanuts

corporate

1,636,030

28,448

107.80

AVERAGES:

Government Bonds

Average
Aaa

173,437

42,985

102.63

r

5,557

211,746

1,636,030

._

(bales)

wild

179,044

14,373

211,746

______

___.

Nov. 29

Group
Group

969,781
790,737

226,125

14,379

Nov. 29

Utilities

915,528
689,403

226,125

Nov. 29

Group

915,528

689,403

Nov. 29

-

(in thousands):

1

i

107.62

Baa

AGRICULTURE—

(bushels)

Hay, all

"

OF

REPORTING

(bushels)

(100-lb.

Nov. 29

•

DEPT.

(bushels)

Average corporate

;

S.

CROP

—

(bushels)

Rye

Flaxseed

Sorghum

."

!

(000's omitted)

spring (bushels)_.
(bushels)

Barley

15.000c
14.800c

13.000c

YORK—

spring (bushels)

Oats

91.000c

15.500c
15.300c

NEW

Other

AVERAGES:

S. Government Bonds

U.

43.025c

44.575c

OF

(bushels)

Durum

43.050c

Nov. 23

BANK

(bushels)________

all

Winter

Nov. 23

,

all (bushels)

All

(East St. Louis)

U.

IN THE

BRADSTREET,

OUTSTANDING—FED¬

Crop reported as of Nov.

4.797c

QUOTATIONS):

at

PAPER

31

(NEW)

&

October

PRODUCTION

$$44.50

$45.17

of

RESERVE

BOARD
Nov. 22

.Nov. 22

:

STATES—DUN

of Oct.

As

&

Electrolytic copper—

Lead

liabilities

INCORPORATIONS

INC.—Month

9,087,000

Nov. 24

Domestic-refinery at
Export refinery at
Straits tin (New York)
"Lead (New York) at-

service

liabilities

BUSINESS

134

Nov. 26

AND

M. J.

liabilities

COMMERCIAL

INC

COMPOSITE

liabilities

UNITED

100

=

kwh.)

000

liabilities

liabilities

Retail

RESERVE

finished steel (per lb.)
Pig iron (per gross ton)
Scrap steel (per gross ton)

METAL PRICES

10,200,000

Nov. 19

INDEX—FEDERAL

AVERAGE

(COMMERCIAL

UKADSXKLET,

16,169,000

Wholesale

-

__

Manufacturers'

89,662,000
75,967,000

INSTITUTE:

(in

output

164,510,000

number

MINES):

(tons)

SALES

SYSTEM—11)47-49

EDISON

OF

lignite (tons)

Pennsylvania anthracite
DEPARTMENT

$254,172,000

177,470,000
117,737,000

Nov. 24

BUREAU

and

73,019,000

$295,207,000

Nov. 19

._i—

$401,695,000
307,848,000
93,847,000
62,329,000
31,518,000

Nov. 19

and municipal
Federal
(U.

89,188,000

Nov. 24

:

State

OUTPUT

216,313,000

Nov. 24

construction

Public construction

COAL

$305,501,000

Nov. 24

.

TR^SACTIONS IN^DI¬

MARKET
GUARANTEED
SECURITIES
A.—Month of October:

AND

U. S.

125,828,310 tons
Net sa.es
i

Net

purchases

—

t30'687'00°

38

The Commercial and

(2342)

Financial Chronicle

Thursday, December 1, 1955

.

..

★ INDICATES

Now in

Securities

Registration

PREVIOUS
REVISED

.

Publishing

Atlas

Great Barrington,

Corp.,

Mass.
Nov. 22

(letter of notification) 50,000 shares of Class A
stock (par $1); 10,000 shares of class B com¬

common

stock

(par $1); and 5,000 shares of 7% cumulative
preferred stock (par $5). Price—At par. Proceeds—For
operating capital. Underwriter—None.

mon

Allied-Mission Oil, Inc.,
Oct. 3 (letter of notification)

Tulsa, Okla.
598,800 shares of common
stock (par one cent). Price—50 cents per share. Proceeds
—For acquisition, exploration, drilling and development
of leases. Address—P. O. Box 1387, Tulsa, Okla. Under¬
writer—United Securities Co., same address.

Plywood Corp., Boston, Mass.
Nov. 14 filed 100,000 shares of common stock (par $1)
to be offered in exchange for the outstanding 291,431
shares of common stock of Plywood, Inc. at an exchange
ratio to be determined later. Atlas presently owns 496,680 shares of Plywood, Inc.

stock and desires to acquire
shares in order to bring its
holdings of such stock to 80%. /
'

at least

Automatic Tool Corp.
'
Sept. 7 (letter of notification) 20,000 shares of common
.

(par $1). Price—$5 per share. Proceeds—To set
factory and purchase equipment and machinery for
manufacture and sale of the "grip-lock" driver and
stock
up a

Aloha, Inc., Las Vegas, Nev.
filed 900,000 shares of common stock (par $1)
and 900,000 shares of preferred stock (par $10) to be
Aug. 8

offered in units of

—$11

share of each class of stock. Price

one

unit. Proceeds—For construction of hotel and
and for contingencies, stock in trade,

per

New York, N. Y.rUnder¬

Office—137 Grand St.,

screw.

ic Aloe Creme Laboratories, Inc.
Nov. 21 (letter of notification) 65,000 shares of common
stock. Price—At par ($1 per share).
Proceeds — For
working capital. Office—801 N. W. 7th Ave., Fort Lau¬
derdale, Fla. Underwriter—None.

Brooklyn,

writer—Ellis-Greenberg Co., 1051 Carroll St.,
N. Y.

T

share. Proceeds—For expenses incident to mining
operations. Office — 441 Thatcher Bldg., Pueblo, Colo.
Underwriter—Investment Service Co., Denver, Colo.
per

'

'

h

Salt Lake City, Utah
Sept. 6 (letter of notification) 12,500,000 shares of non¬
assessable capital stock.
Price—At par (one cent per
Proceeds

share).

For

—

expenses

Utah.

Channel Oil Co., Las Vegas,

and

activities

working capital. Underwriter—None.

Alpha Plastics Corp. (12/5)
Nov. 18 (letter of notification) 300,000 shares of class A
stock (par 10 cents).
Price—$1 per share. Proceeds—
$90,000 to redeem the preferred stock; $18,100 to be
payable to

stockholders

to company;
for

heretofore made

advances

for payment of current obligations, etc.; and

working

N. Y.

for

capital.

Office—94-30

Underwriter—J. E.

American

Bankers

166th

St.,

Jamaica,

DesRosiers, Inc., New York.

Insurance

Co.

of

Nev.

in units of one share

be offered

of

shares

two

stock.

common

of preferred stock
and

Price—$20.20

Nov. 22

(letter of notification) 21,000 shares of class A
voting stock (par $2.50). Price—$14.25 per share. Pro¬
working capital and expansion. Office—343
N. E. Second Ave., Maimi, Fla. Underwriters—Johnston,
Lemon & Co., Washington, D. C., and Atwill & Co.,
ceeds—For

Miami

Beach, Fla.

—

For general

corporate purposes, including construction.
Underwriter—McDonald & Co., Cleveland, Ohio.
American

Institute

Ltd.

Nov.

21

.

of notification) 100,000 shares of 8%
non-voting callable preferred stock. Price—

(50

par

Engineers & Contractors,

(letter

cumulative
At

of

cents

share).

Proceeds—For

working
capital Office—Suite 1108, National Press Bldg., Wash¬
ington, D. C. Underwriter—None.
"

Arizona

per

Offering—Indefinitely postponed.

Oct.

Inc.

Buying Service,

Charge
17

(letter of notification) 300,000 shares of class A
common stock
(par 25 cents) and 60,000 class warrants
to be offered in units of five shares of class A stock
and
warrant (warrant holders will be entitled to

one

pur¬

chase

one

class A share at 62

per

unit.

cents per share). Price—

Proceeds—For working capital

(letter of notification) 3,000,000 shares of com¬
Price—At par

stock.

—For

Nev,

Uranium Corp., Overton,

Big Ute
Oct. 28
mon

mining

(10 cents per share). Proceeds
Underwriter—James E. Reed

expenses.

Co., Inc., Reno, Nev.

Insurance Co.
stock (par $2.50),
publicly offered
at
$5 per share, and 29,473 shares are to be pur¬
chased by Town and Country Insurance Agency, Inc.
at $4.50 per share. Proceeds—To acquire through merger
the Blackhawk Mutual Insurance Co. Office—Rockford,
111.
Underwriter
Arthur M. Krensky & Co., Inc.,
Chicago, 111.

Oct. 28 filed 200,000 shares of common
of
which
170,527 shares are to be

Bonus

Uranium, Inc., Denver, Colo.
Oct. 28 (letter of notification) 3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds—For mining expenses. Office—1154 Bannock St.,
Denver, Colo. Underwriter — Mid-America Securities,
Inc., Salt Lake City, Utah.
^ Bostwick Uranium, Inc., Salt Lake City, Utah
22 (letter of notification) $25,000 of membership

Nov.

Proceeds

certificates.

To

—

explore and drill uranium

Office—671 So. Second East, Salt Lake City,

properties.

Underwriter—None.

it B-Thrifty, Inc., Miami, Fla.
shares of class A common stock (par
$25). Price—$38 per share.
Proceeds—To open addi¬

cents per share.

tional

100,000 shares of 5%

cumulative preferred
primarily to members of the Ocean
Beach Club, Inc.5 Price—At par ($10 per
share). Pro¬
ceeds—For construction of bridge across Sinepuxent
Bay
from the Worcester County (Md.) mainland to Assa¬
teague Island. Office—Washington, D. C. Underwriter-—
None.

.

Nov.

15

filed

Light Co.
30,000

(12/7)
shares of cumulative

preferred
stock (par $100). Proceeds—To
repay bank loans and for
construction program.
Underwriter—To be determined
by competitive bidding. Probable bidders: White, Weld
&

Co.

and

Kidder, Peabody & Co.

(jointly); The First

Boston Corp.; Stone & Webster Securities
Corp.; Shields
& Co.; Equitable Securities
Corp. and Union Securities

Corp. (jointly). Bids—To be received
on

Dec. 7 at 90 Broad St., New

Atlas
Oct.
mon

Industries,

Inc.,

Business

stores.

Northwest

Office—5301

up

to 11

a.m.

(EST)

York, N. Y.

—

Supermarket

37th Ave.,

concern.

Miami, Fla.

Under¬

writer—None.

(letter of notification) 200,000
stock (par one cent).
Price—$1.50

shares
per

Ltd.
Oct. 27 filed 500,000 shares of capital stock (par $1Canadian). Price—$1.50 per share. Proceeds—For ex¬
ploration of mining properties in Cuba. Office—Toronto,
Canada.

•

Caribou

com¬

share.

Pro¬

ceeds—To purchase dies and materials and for

working
capital, etc. Office — 6006 Harvey Wilson Drive, Hous¬
ton, Texas. Underwriter
Benjamin & Co., Houston,
Texas.
.
1
—

Baruch

—

Brothers

&

Co., Inc.,

Ranch

Corp., Denver, Colo.
July 15 filed 505,000 shares of common stock (par $1.)
Price—$4 per share. Proceeds—For acquisition of prop¬
erty and equipment, construction of additional facilities,
etc.

Underwriter—To be named.

Carolina Casualty Insurance

Co., Burlington, N. C.
(letter of notification) 30,000 shares of class B
common
stock (par $1) to be offered for subscription
by stockholders. Price—$10 per share. Proceeds—For
working capital, etc. Office—262 Morehead St., Burling¬
ton, N. C. Underwriter—None.
Nov.

Cascade

Oct.

18

Natural

filed

Gas

$3,589,450

(12/9)

5%%

31, 1960, and 71,789 shares of

$1), to be offered first to
Dec.

Corp.
of

in

6

rights to expire
amendment.
repay

common

units of $50 of
on

Dec.

new

common

stock

(par

one

Price—To

Proceeds—Together

bank loan and for

due

stockholders of record

notes and

16.

notes,

with

share

of

stock;

be

supplied by
other funds, to

construction.

Underwriters

Nov.
nated

7

filed $750,000 of participating junior subordi¬
sinking fund 6% debentures due Nov. 1, 1970 (with

detachable
of

22,500

common

shares

of

stock

purchase warrants for

a

total

stock, par $1 per share).
Price—At 100% (in units of $500 each). Proceeds—For
working capital, etc. Underwriter—Paul C. Kimball &
Co., Chicago, 111.
•




Pittsburgh

San Francisco
to

all

offices

Chicago

Cleveland

common

Century Engineers, Inc.

Nov.

Private Wires

class B

one

Uranium Corp.,

Underwriter—Crichton

Salt Lake City, Utah

Proceeds—For

mining expenses, etc.
Office—2630 South
West, Salt Lake City, Utah.
Underwriter—Denver
Securities, Inc., Denver, Colo.

2nd

Citizens Credit Corp.,

Washington, D. C.

Sept. 27 (letter of notification) $245,000 of 6% subordi¬
debentures

nated

due

1975

2,450 shares of class A
B

capital to

subsidiaries.

Clad-Rex

supply

Connecticut

Ave.,
Underwriter—Emory S. War¬

W., Washington, D. C.
ren &
Co., same address.
•

Proceeds—To

Office—1028

N.

Aug.

and 490 shares of class

Price—99%.

stock).

common

(with warrants to purchase

common

Steel

Co., Denver, Colo. (12/5)
400,000 shares of common stock (par 10
Price—$1.25 per share.
Proceeds—To repay

24 filed

cents).

short-term

obligations,
—

etc.

and

for

working

capital.

Mountain States Securities Co., Denver,

Colo.; and Joseph McManus & Co., New York, N. Y.<
Cole

Nov.

9

Engineering Corp.
of notification)

(letter

2,575 shares of common
Price—$10 per share. Proceeds—For new ma¬
chinery, etc. Underwriter—Spencer, Zimmerman & Co.,
stock.

Colohoma

4

filed

74,000 shares

of

(12/5-9)
common

Price—To be supplied by amendment.

expansion

Burbank,

of

Underwriter—Morgan

Inc.

(12/15)

cent).

Price—40 cents

tion

and

rate

per

(par one
share. Proceeds—For explora¬

purposes.

development expenses and for general corpo¬

Office—Montrose, Colo. UnderwritersGeneral Investing Corp., New
York; and Shaiman & Co.,
Denver, Colo.
Columbus & Southern Ohio Electric Co.
15 filed 250,000 shares of common stock

(12/6)

Now

(par $5).

Price—To be supplied by amendment. Proceeds—To re¬
duce bank loans.
New

Underwriters—Dillon, Read & Co. Inc.,
York; and The Ohio Company, Columbus, Ohio.

Comet Uranium

Aug. 20

Corp., Washington, D. C.

(letter

of notification) 700,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds—For mining operations. Office—501 Perpetual
Bldg., Washington 4, D. C. Underwriters—Mid America
mon

stock

Inc.,

Securities Corp.,

Salt

Lake

City,

Utah;

Seaboard

and

Washington, D. C.

Connecticut Light & Power Co. (12/8)
Nov. 18 filed $20,000,000 of first and
refunding

mortgage

3V4% bonds, series N. Price—To be
supplied by amend¬
ment.
Proceeds—To repay bank loans and for construc¬
tion program.
Underwriters—Putnam & Co., Hartford,
Conn.; Chas W. Scranton & Co., New Haven, Conn., and
Estabrook & Co.,

Boston, Mass.

Consolidated Edison Co. of New York,

1

Inc.

Nov. 9 filed

$70,000,000 of first and refunding mortgage
bonds, series K, due Dec. 1, 1985. Proceeds—To repay
$65,000,000 bank loans and for additions to utility plant.
Underwriter—To be determined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; The First Boston Corp. Bids—Tentatively
expected to be received up to 11 a.m. (EST) on Dec. 0.

* Construction Products Sales, Los Angeles, Calif21
(letter of notification) 12,000 shares of class
A 6% cumulative
convertible preferred stock (par $20)
and 60,000 shares of class A common stock
(par $1)
Nov.

stock

(par $1).

Proceeds

subsidiary and working capital.

Calif.

Uranium,

Nov. 9 filed 2,500,000 shares of common stock

(12/6)

Century Acceptance Corp., Kansas City, Mo.

Philadelphia

Cisco

and

Proceeds—For general work¬
National Bank of Commerce

Aug. 10 (letter of notification) 7,000,000 shares of capital
stock
(par one cent).
Price—Three cents per share.

Securities,

interim

—White, Weld & Co., New York; First California Co.,
San Francisco, Calif.,- and
Blanchett, Hinton & Jones,
Inc., Seattle, Wash.

Boston

of two class A

units

Office—505

capital.

2

Nov.

of

Underwriter

New York.

•

Houston, Texas

10

New York

in

Price—$5 per unit.

Charleston, W. Va.
Investment Co., same address.

Nov. 23 filed 37,000
retail

offered

be

ing

Canuba Manganese Mines,

(Md.)

stock to be offered

Atlanta Gas

to

share.

Parking

Inc., Columbus, Ga.

Assateague Island Bridge Corp.
Oct. 7 filed

same city.
Service, Inc..
Aug. 1 (letter of notification) 120,000 shares of non¬
voting common stock, class A—(par 50 cents) and 60,000
shares of voting common stock, class B (par 10
cents)

Charleston

Underwriter

Co., Phoenix, Ariz.
Sept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20

salesman of the insurance firm.

to

expansion and liquidate notes and liabili¬
Bldg., Salt Lake City, Utah. Under¬

ties. Office—522 Felt

Building,

Fire & Casualty

Finance

Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by

and

writer—Cayias, Larson, Glaser & Emery, Inc.,

St., Reno, Nev. Underwriter—Mid
America Securities, Inc., Salt Lake City, Utah.
North Virginia

—206

Utah.

Public

unit.

payments'
Francisco'

Calif.; and Blair & Co., Incorporated, New York. Change
of Name—Formerly Continental Production
Corp. (see

meet current

9,000,000 shares of common
— Three
cents per share.
exploration and development costs. Office

—

American Greetings Corp. (12/5-9)
Nov. 14 filed 200,000 shares of class a common stock (par
$1). Price—To be supplied by amendment. Proceeds—

per

For

production of production
Underwriters—First California Co., Inc., San
Proceeds

Oct. 19 (letter of notification)
stock (par one cent). Price

Blackhawk

Florida

mining

filed

18

Proceeds—For

related

to

(by amendment) 435,000 shares of $1.20
cumulative preferred stock (callable at $20 per
share)
and 870,000 shares of common stock (par 10
cents) to
Oct.

$2.50

Big Ridge Uranium Corp., Reno, Nev.

incident

Office—810 Deseret Building, Salt Lake
City
Underwriter—Utah Securities Co., same City.

activities.

below).

Big Chief Uranium Co., Pueblo, Colo.
Sept. 20 (letter of notification) 1,500,000 shares of non¬
assessable common stock (par 10 cents). Price—20 cents

'

Chaffin Uranium Corp.,

additional 133,809

an

ISSUE

1

•

it Advance

ADDITIONS

SINCE
ITEMS

•

&

—

For

Office—

Co., Los An¬

geles, Calif, and S. D. Fuller & Co., New York.

be

offered

shares.

capital.
Calif.

in

units of

Price —$25

preferred and five common
unit.
Proceeds —For working
Goodwin Ave., Los Angeles 39,
one

per

Office—4043

Underwriter—None.

Number 5486

132

Volume

...

The Commercial

,

and Financial Chronicle

(2343)

s

Acceptance Corp.

Consume**

$299,000 of 6% deben¬
tures, series A, due Oct. 1, 1973 (with stock purchase
warrants attached). Price. At par (in denominations
of $500 and $1,000 each). Proceeds—For purpose of mak¬
ing loans
and for other general corporate purposes
Office—904 Hospital St., Providence, R. I. Underwriters
—Simon, Strauss & Himme, New York; William N. Pope,
Inc., Syracuse, N. Y., and Draper, Sears & Co. and Chace',
Whiteside, West & Winslow, Inc., both of Boston, Mass.
Cooperative Association

Consumers

None; stock sales to be made through
Association's employees. Office—Kansas City, Mo.
—

stock

Industries, Inc., Dallas, Texas
(letter of notification) 199,999 shares of common
(par $1), of which 107,915 shares are to be sold

Aug. 29 filed. $8,700,000 of 15-year 5V2% income de¬
bentures due Sept. 1, 1970 and 879,000 shares of common

•

purposes.

Underwriter—Central Securities

Co.,

cents).

market.

«

Public

Underwriter—First

Co., Inc., San Francisco, Calif.

California

Statement Amended and

Changed—See Channel Oil Co. above.

Name

-

28

by

Co., Philadelphia, Pa.

Power &

Light Co.

bidders:

Halsey Stuart & Co. Inc.; Kuhn, Loeb & Co.
Bros. & Hutzler (jointly); Lehman Bro¬
thers; Union Securities Corp.; The First Boston Corp.
and Blyth & Co. Inc., (jointly); White, Weld & Co. and
Shields & Co. (jointly); Merrill Lynch, Pierce, Fenner
and

&

Salomon

Beane

and

Lang ley & Co.

Kidder, Peabody & Co. (jointly); W. C.
Bids — Tentatively expected to be re¬

to 11:30

up

(EST)

a.m.

(Republic of)

Works

bonds

amendment.

due

4%

Veterans,

1983.

Proceeds

Construction Co.

Delaware

of

To

—

Courts

Price—To

be

and

on

Power & Light Co.

Dec.

13.

(12/13)

Nov. 16 filed 50,000 shares of preferred stock (par
$100).
Proceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding.

supplied

Romenpower

(12/13)

$10,000,000 of first mortgage and collateral

trust bonds. Proceeds—To repay bank loans. Underwriter
be determined by competitive bidding. Probable

ceived

$2,000,000

To

—To

—

filed

—

Co., the selling stockholder.

Crystal Dairies, Inc. (12/7-8) .
filed $2,000,000 of 4% convertible subordinated

Nov. 16 filed

Cross-Bow Uranium Corp.
Aug. 29 (letter of notification) 5,000,000 shares of com¬
mon stock.
Price—At par (six cents per share).
Pro¬
ceeds
For mining operations. Office
1026 Kearns
Bldg., Salt Lake City, Utah. Underwriters—Potter In¬
vestment Co., and Mid-America
Securities, both of Salt
Lake City, Utah.

Office—Las Vegas, Nev.

&

(par $1).

Proceeds

Daitch

Delaware

working capital. Office—Mailory-Hutchinson Bldg., La
Grange, Ga. Underwriter—Franklin Securities Co., At¬
lanta, Ga.

21

stock

with
proposed merger with company of
Shopwell Foods, Inc., and for expansion program. Office
—Bronx, New York City, N. Y. Underwriter—Hirsch &
Co., New York.

Credit Finance
Corp., La Grange, Ga.

Cuba

common

connection

Oct. 28 (letter of
notification) 148,000 shares of common
stock (par $1). Price —
$2 per share. Proceeds — For

Nov.

(12/8)

supplied by amendment.

1975. Price—100% of principal amount.
Proceeds—From sale of debentures, together with funds
to be received from institutional
investor, to be used in

Proceeds—To

—None.

10 cents) to be offered in units of $50 of
debentures and five shares of stock. Price—$50.50 per
unit. Proceeds—For acquisition of production payments.

Corp.

50,000 shares of

be

debentures due

stock

(par

stock

To

Underwriter—Bioren

(par 10
a
selling
Office—Corpus Chrisii, Texas. Underwrite*

Price—At the

—

Southeastern Public Service

Oct.

Corpus Christi Refining Co.
Sept. 2 filed 500,000 shares of common

filed

17

Price

Dallas,

Texas.

Cumberland Gas

Nov.

by company and 92,034 shares
by a selling stockholder.
Price
$1.50 per share. Proceeds—For general
corporate

—

Production Corp.

Continental

Aug. 1

stockholder.

filed 140,000 shares of 5V2% preferred stock; 10,000 shares of 4% second preferred stock; and 4,000 shares
of 2% third preferred stock to be sold directly to mem¬
bers of the Association. Price—At par ($25 per share),
proceeds — For general corporate purposes, including
cash requirements necessary to meet requests for re¬
demption ahead of maturity on outstanding certificates
of indebtedness and 5y2% preferred stock and to finance
accounts receivable; also to improve existing facilities.
Nov. 8

Underwriter

Cook

•

10 (letter of notification)

Nov.

39

Electra

Probable bidders: Blyth & Co., Inc. and The First Boston

Underwriter—Allen & Co., New York.

Corp.

NEW
-v:

December

1

ISSUE

EST)

&

Jones,

December

Common
Co.)

&

$3,589,450

shares

Richmond Homes, Inc
(Cruttenden

Inc.)

(Friday)

$700,000

(Monday)

Alpha Plastics Corp
(J.

Maine

-

12

(Morgan & Co. and S. D. Fuller & Co.) 74,000 shares

Clad-Rex Steel Co
Joseph

and

Co.

McManus

>•».;
•

Co,

&

Fi.st

and

&

—Debentures
Harriman Ripley

Estauro^k

6c

'V;

Delaware Power

&

13

Inc.;

& Co.
•

-rV

*-

•

>

.

■««

be invited)

North

Common

Employees Insurance Co

be

invited)

noon

CST)

to

Puerto Rican Jai Alai, Inc
•y

(F.

Crerie

H.

&

Common

Co.,

U. S. Automatic Machinery & Chemical

Corp.
Securities

(Bids

$8,700,000

Corp.)

Corp

$300,0j0

Preferred

—

(Bids

.....Class A Common
(Columbia

Equip. Trust Ctfs.

Illinois Central RR

Muzak

CST)

noon

National Propane Corp

Underwriter

—

Newspaper Enterprises, Inc.
75,000 shares of 7% cumulative convertible
preferred stock (par $10) and 75,000 shares of common
stock (par 10 cents) to be offered in units of one share
of each class of stock. Price—$10.10 per unit. Proceeds—
To exercise an option, whrch expires on Dec. 4, 1955,
to acquire certain properties of the Brooklyn Eagle,
Inc.; and for working capital. Office—Brooklyn, N. Y.
Underwriter
James Anthony Securities Corp., New
Oct.

$5,000,000

$1,875,000

Inc.)

Ave., Provo, Utah.
Co., Provo, Utah.

Eagle

Preferred

Delaware Power & Light Co
(Bids

Investment

$i0,000,000

(Blyth & Co., Inc.) 94,700 shares

.

University

Weber

Bonds

Co., Inc.) $4,050,000

Pacific

(letter of notification)

Dix Uranium Corp., Provo, Utah
Aug. 10 (letter of notification) 6,000,000 shares of non¬
assessable capital stock.
Price—At par (five cents per
^share).
Proceeds—For mining expenses.
Office—290

(Tuesday)

Light Co

(Bids to

and

$i,ou0,000

co.)

I

■

California

Common

Co
160,000 shares

Co.)

.

(Lee Higginson Corp.;

December

Common

Dillon

Noyes

Tracerlab, Inc.

$500,000

CO.)

LeCuno Oil Corp
(Eastman,

(Hemphi.l,

Common
&

$300,000

Pittsburgh Coke & Chemical

Common

Securities

Common

—

Brothers)

20

Dinosaur Uranium Corp., Salt Lake City, Utah
Aug. 15 (letter of notification) 15,000,010 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
ceeds—For expenses incident to mining activities. Office
—15 Exchange Place, Salt Lake City, Utah.
Underwriter
—Western States Investment Co., same city.

Common

(P. W. Brooks & Co., Inc.) $1,000,000

(Vickers

(McDonald & Co.) 200,000 shares

States

$400,000

Common

Century Engineers, Inc,

(Mountain

Common
Inc.)

Otis,

Old Empire, Inc.

$300,000

American Greetings Corp._______Class A

:

(Monday)

Fidelity Life Insurance Co

........Class A

Des Rosiers, Inc.)

E.

71,789

and

notes

stock.

International Metals Corp
(Gearhart &

December 5

of

Minerals

Co., Casper, Wyo.
600,000 shares of non¬
assessable common stock (par five cents). Price—50 cents
per share. Proceeds—Expenses incident to mining oper¬
ations. Office—223 City and County Bldg., Casper, Wyo.
Underwriter—The Western Trader & Investor, Salt Lake
City, Utah.
Sept.

Notes & Common

(White, Weld & Co.; First California Co. and Elanchett,
Hinton

13.

Delta

(Friday)

Cascade Natural Gas Corp

$3,OJO,9DO

December 2

Dec.

December 9

Equip. Trust CUs.

(Bids noon

CALENDAR

(Thursday)

Baltimore & Ohio RR

(jointly); White, Weld & Co. and Shields & Co.
(jointly); Lehman Brothers; W. C. Langley & Co. and
(jointly); Morgan Stanley & Co.
Bids—Expected to be received up to 11:30 a.m. (EST) on.
Union Securities Corp.

$500,000

-Preferred & Common

(Carl M. Loeb, Rhoades & Co. and Union Securities Corp.)

19 filed

—

December
;

6

(Tuesday)

Chicago, Milwaukee, St. Paul & Pacific RR.

New

(Bids

(Bids

$7,500,000

CST)

noon

Quebec

Columbus & Southern Ohio Electric Co.__Common
(Dillon.

Read

Co.

Ac

Inc.

The

and

Co.)

Ohio

250,000

11

'

<

(Bids

11

EST)

a.m.

Chemical

$70,000,000

(General

Common

"\

•

Common

Corp

(Reynolds

-

Varian Associates

1'

(Dean

shares

373,900

Co.)

&

:__Debentures

'

Witter

&

Investing Corp.)

11

Preferred

$12,500,000

EST)

a.m.

(Blyth

Common
400,000 shares

Atlanta

Gas

Light
(Bids

Daitch

7

January

(Bids to be invited)

Preferred

(Hirsch

&

Debentures
Common

Jackson

and

Curtis

&

|
& Co.) 400,000 shares
National Old Line Insurance Co.

Class
(Equitable

Securities

Shore Gas
(Bids

Corp.)

50,000

A

White,

(Bids

(Bids

&

shares

of

each

&

Texas & Pacific Ry

Co.)

Co.;

8

&

Co.;

Lynch

Estabrook

to stockholders—may be underwritten
Blyth & Co., Inc.) 100,000 shares

Cumberland Gas Corp.(Bioren

Missouri Pacify

&

Co.)

50,000

(Bids

noon

Bonds
and




Dallas Power &
(Bids

Price—$1

per share.
Proceeds—For
Office—53 State St., Boston,

Underwriter—None.

Mass.

Empire Studios,

Inc.,

Orlando, Fla.

(letter of notification) 120,000 shares of common
stock (par 50 cents). Price—$2.50 per share. Proceeds—
To

7

finish

three films under release contract

Repub¬

to

* Entron, Inc., Bladensburg, Md.

.

$225,000 of 7% convert¬
debentures due 1964 and 15,000 shares of common
21

stock

Bonds

Corp.

(letter of notification)

(no par) to be offered in units of $375 of deben¬
Price—$500 per unit. Pro¬

tures and 25 shares of stock.

ceeds—Principally for the acquisition of inventory and
working capital. Office—4902 Lawrence St. (P. O.

$10,000,000

for

February 28

shares

$2,625,000

stockholders.

general corporate purposes.

Nov.

(Wednesday)

be invited)

stock

Underwriter — Gerard R. Jobin In¬
vestments, Ltd., St. Petersburg, Fla.

about $15,000,000

Light Co
to

stock).

(letter of notification) 297,000 shares of com¬
(par 10 cents), to be offered for subscription

Sept. 28

ible

.Enuip. Trust Ctfs.
CST)

invited)

February 15

Common

RR

be

of

Electronic Micro-Ledger Accounting Corp.

lic Pictures

Common

Utilities Co.....
to

by

(Tuesday)

January 31
Texas

(Thursday)

W.

&

chasers

Oct.

..Common

Seattle-First National Bank
(Offering

$1,400,000

Scr^nton & Co.;
Co.) $20,000,000

Chas.

Boston Corp.; Goldman, Sachs
Co.; Lehman Brothers; Merrill
Beane; and White, Weld & Co.)

$2,400,000

Connecticut Light & Power Co.(Futnam

shopping center in Lansing, Mich., from builder of
Underwriter—None, offering to be made through
Funds are to be held in escrow (if
not enough is received, funds will be returned to pur¬

by

(Wednesday)

Class A Common

Kuhn, Loeb
&
Pierce, Fenner &

(Eids

December

$8,000,000

(Blyth & Co, Inc.; The First

__Equip. Trust Ctfs.
EST)

....Preferred

Co
invited)

Ford Motor Co

Preferred

noon

to

$20,700,000

6,952,293 shares

$11,595,000

Reading Tube Corp

(Bids

invited)

January 18
Common

B

Equip. Trust Ctfs.

(Bids noon EST)

Deetjen

be

to be

$2,500,000

Pennsylvania RR.

(Emanuel,

Edgemont Shopping Center, Inc., Chicago, III.

mon

"

Bonds
EST)

a.m.

to

Electric

Pennsylvania

Weld

Co
U

Bonds

Pennsylvania Electric Co

&

North

incident to drilling for oil and
Office—Colorado Bldg., Denver, Colo. Underwriter
—Philip Gordon & Co., Inc., New York.

$2,000,000

Co.)

Minute Maid Corp
(Paine, Webber,

Proceeds—For expenses

center.

$6,000,000

(Tuesday)

January 17

$3,000,000

Crystal Dairies, Inc

1,500,000 shares of com¬
Price—20 cents per share.

cent).

one

officers of company.

Preferred
EST)

a.m.

(par

Oct. 14 filed 6,000 shares of class A common stock. Price
—At par ($100 per share).
Proceeds—To acquire title

(Wednesday)

11

& Uranium Co.

(letter of notification)

stock

mon

(Reynolds & Co.) $6,000,000

shares

Co

11

Oct. 25

Preferred

Magnavox Co.

(Wednesday)

South, Salt Lake City,
State Brokerage, Inc., Las

gas.

(Monday)

New Orleans Public Service Inc.___

December

East Basin Oil
,

Common

405,355

Inc.)

Co.,

&

$300,000

Corp

,

Yuba Consolidated Oil Fields

$1,000,000

(Bear, Stearns & Co, and Keith, Reed & Co. Inc.)

5th

East

Underwriter—Valley
Vegas, Nev.

.Debentures

underwriting)

Office—214

Utah.

Common

January 9

Virginia Electric & Power Co
(Bids

Georesearch

$2,000,000

Co.)

activities.

(Thursday)

General Capital Corp
(No

Products

15

Colohoma Uranium, Inc

(Carl M, Loeb, Rhoades & Co.) 75,000 shares

Revlon

Commission._.Debentures

Hydro-Electric

Bonds

Co

Eagle Rock Uranium Co., Salt Lake City, Utah
Sept. 19 (letter of notification) 30,000,000 shares of non¬
assessable common stock. Price—At par (one cent per
share). Proceeds — For expenses incident to mining

(The First Boston Corp. and A. E. Ames & Co. Inc.) $50,000,000

December

Kawecki

..Debentures

$25,000,000 *

shares

Consolidated Edison Co. of New York
.

EST)

a.m.

York.

(Wednesday)

Jersey Bell Telephone Co

Equip. Trust Ctfs.

>

'

December 14

Texas

(Tuesday)

(Bids

to be invited)

Box

Bonds

Electric Service Co
$10,000,000

287), Bladensburg, Md. Underwriter—None.
I

Continued

on

page

40

40

Continued

from

Entz-White

page

Lumber

39

per share. Proceeds — To reduce bank loans and for
working capital. Underwriter—Putnam & Co., Hartford,

&

Conn.

Supply, Inc.
Oct. 26 filed $500,000 of 20-year, 7%
sinking fund
debentures and 10,000 shares of capital stock (par $1) to
be offered in units of $50 principal amount of deben¬
tures and one share of stock.
Price
$50 per unit.
Proceeds—To retire $80,000 of outstanding debentures;'
to increase inventories; and to establish additional out¬
lets.
Office—Phoenix, Ariz.
Underwriter—None.
—

Gulf Coast Leaseholds, Inc., Houston, Texas
Sept. 14 filed $2,000,000 of 5% sinking fund convertible
debentures due Sept. 1, 1965 to be sold to Brandel Trust.

Price—$1,825,000, plus accrued interest of $29,632. Pro¬
ceeds—To purchase certain working or leasehold inter¬
ests in oil and gas interests. Underwriter—None.

^ Farmer's Educational and Co-Operative Union of
America, Denver, Colo.
Nov. 23 filed $2,300,000 of registered debentures, series
A; $500,000 of registered savings debentures, series B;
and $1,200,000 of registered savings debentures, series
C. Price—At par (in units of $100, $125 and $120, re¬
spectively). Proceeds — To be loaned to or invested in
subsidiaries; to retire outstanding indebtedness;
the Union's educational activities. Under¬

Half Moon Uranium Corp.,

Ogden, Utah
Aug. 10 (letter of notification) 8,000,000 shares of capital
stock.
Price—At par (two cents per share).
Proceeds
—For mining expenses. Office—E-17 Army Way, Ogden,
Utah.

Nov.

writer—None.

tive

and agents, and by

ers

of

the

Union,

officers, directors and employees

which

is

often

referred

to

National

as

farmers Union.

25

Plans, Inc., Worcester, Mass.
filed $10,000,000 of total payments under two

types of Plans of the corporation for the accumulation of
shares of Federated Fund of New England, consisting of

$8,500,000 of Systematic Investment Plans and $1,500,000
Fully-Paid Plans.

of
•

19

common

(letter of notification) 10,000 shares of class A
stock (par $10), to be offered for subscription by

stockholders

on the basis of one new share for each
10
shares held. Price—$30 per shaire. Proceeds—To form and
invest in the capital stock of an insurance company sub¬

sidiary.

Office—Munsey Bldg., Baltimore 2, Md. Under¬
Offering—Indefinitely postponed.

writer—None.
Fort

Pitt

£0,000 shares of five selling stockholders.

Price—$3 per
chare. Proceeds—For working capital; for exploitation
cf "Totosave" system; and for
marketing of "TropicBay" infra-red space heater. Office — Pittsburgh, Pa.
Underwriter—Barrett Herrick & Co., Inc., New York.

Railway Supply Co.

Oct. 19

(letter of notification) 20,000 shares of common
(no par) to be offered for subscription by stock¬

stock

holders.
Price—$10 per share.
Proceeds—To
unsecured bank loans and for working capital.
£27

reduce

Office—

Market

St., Wilmington, Del.
Underwriter—None,
But C. W. Floyd Coffin and Herman F. Ball have
agreed
to purchase all shares not subscribed for
by stockholders.
Freedom Insurance Co.

June 6 filed 1,000,000 shares of common stock
(par $10).

Price—$22 per share. Proceeds—For capital and surplus.
Business—All insurance coverages,
except, life, title and
mortgage. Office—2054 University Avenue, Berkeley,
Calif., c/o Ray B. Wiser, President.
Calif.

Underwriter

York.

Blair

—

&

Co.

Office—Berkeley,
Incorporated, New

Offering—Indefinitely postponed.

Fremont Uranium Co., Salt Lake
City, Utah
Aug. 1 (letter of notification) 15,000,000 shares of
•

stock.

mon

Price—At

(one cent

par

per

share).

Pro-

Bldg.,
Brokerage
Co., Western States Investment Co., Potter Investment
Co., Mid-America Securities, Inc. of Utah, and CashinEmery, Inc., all of Salt Lake City, Utah.
Gas Hills Mining & Oil, Inc.,
Kemmerer, Wyo.
(letter of notification) 1,000,000 shares of capi¬

Aug. 1

tal stock

(par five cents). Price — 25 cents per share.
Proceeds—For oil and mining expenses. Underwriter—
Empire Securities Corp., Las Vegas, Nev.
'

General Capital Corp. (12/15)
Oct. 3 (letter of
notification)

$300,000 of 10

year 8%
par (in denominations of $100,
$5,000). Proceeds
For purchase of
commercial paper. Office—4309 N. W. 36st
St., Miami
Springs, Fla. Underwriter—None.

debentures.

Price—At

$500, $1,000

and

—

"k Georesearch, Inc.

(12/15)

Nov. 25 filed 400,000 shares of common stock
(par $1).
Price—To be supplied by amendment.
Proceeds—To
re-

tire^ $400,000 of notes

and for general corporate

purposes.

Office—Shreveport and Jena, La. Underwriters—Bear,
Stearns & Co., New
York, and Keith, Reed & Co., Inc.,

Dallas, Texas.

common
one

new

(par $1)
stockholders of record Nov.
share

for each

17 shares

14

held

at

the

(with

rate

of

over¬

subscription privilege); rights to expire on Dec. 5.
Price
—$1,621/2 per share. Proceeds—For general funds.
417

-

Office

South Hill St., Los

None.
-

Angeles, Calif. Underwriter—

Great Southwest Fire

Phoenix,

,

Oct. 26 filed 700,000 shares of
capital stock (par $1), to
be offered
to present and future
holders of policies
issued by National Reserve
Insurance Co. as an optional
dividend refund of their annual
policy premium. Price
—•$1.60 per share. Proceeds—For
working capital, etc.
Underwriter
None.
Some of the stock will
also be
offered to public
through Kenneth K. Pound,
President;
and Law L.
Lovelace,
—

Secretary-Treasurer.

•

Guilford-Chester Water Co.,
Clinton, Conn.
N°v. 10 (letter of
notification) 8,507 shares of common
stock (no par) to be
offered for subscription
by stock¬
holders of record Nov. 4




on

a

l-for-3 basis.

^

York, N. Y.
Israel-Rassco

"Isras"

Investment Co.,
Ltd.
Sept. 28 filed 9,000 ordinary shares. Price—At par
nnn
Israel pounds each, or about $55 in U. S.
funds), payabl!
in State of Israel Independence Issue Bonds
only.

Aviv, Israel.

Underwriter

Offin!

—

Rassco

New York.

Israel Corn
11

*

,

Jurassic Minerals,

Inc., Cortez, Colo.
Aug. 26 (letter of notification) 2,855,000 shares
assessable

Price—io Centi
Proceeds—For expenses incident to minini

share.

Office

326

—

Underwriter

Colo.

—

New York.
•

of non¬

stock (par one cent).

common

Co.

Chemical

Kawecki

West

Montezuma

St., Cortei

Bay Securities Corp., New
York

(12/6-7)

Nov. 10 filed 75,000

shares of capital stock (par 25
cents)
Price—To be supplied by amendment. Proceeds—To
re¬
tire outstanding mortgage indebtedness and bank
loan*
for

other

At par (in denominations of $1,000, $500 and $100). .Pro¬
ceeds—For working capital.
Office—837 South Maine

York.

St., Salt Lake City, Utah. Underwriter—Edward L. Bur¬
ton & Co., same city.

(Julius) & Co., New York
130,000 shares of common stock (par $5)
being offered for subscription by common stockholders

Oil Co.,

Ltd.,

Calgary, Canada
shares of class A stock and
2,293,231 shares of class B stock, which are being of¬
fered in exchange for Federated Petroleums, Ltd. com¬
Sept.

26

filed

stock

mon

1,500,000

the basis of

on

one

share of either class A

or

class B stock in
the

offer

Dec.

6

exchange for each two Federated shares;
expire on Dec. 5.
Stockholders will vote
approving acquisition of assets of Federated.

to

on

Statement effective Oct.
Mousatonic Public

Service

mon

stockholders of record Nov.

new

share for each 29

Dec.

12, 1955.

7

the

on

basis

of

share.

and for working capital
and
Office — Boyertown

purposes.

M.

'

Loeb, Rhoades

&

Co., Ne\y

•

Kayser

Oct.

filed

24

of record Nov. 25

on

the basis of

one

five shares held; rights to expire on

share.

per

Proceeds—For

general

share for each

new

Dec.114. Price—$20
corporate

Business—Manufactures wearing apparel.

None.

Any

unsubscribed

shares

certain officers, directors and
Kendon

Electronics

Co.,

(letter of notification)

will

purposes.

Underwriter-

be

taken

up

by

insurance companies.
Inc.
60,000 shares of

common

Proceeds—For

struction expenditures.
Office—33 Elizabeth
Conn.
Underwriter—None.

—To Nicholas J. Papadakos, the selling stockholder. Of¬
fice—129 Pierrepont St., Brooklyn, N. Y. Underwriter-

20th Century Pioneer Securities

Co., New York.

one

shares held; rights to expire on
per

corporate

Underwriter—Carl

Pa.

•

general

stock (par 10 cents). Price—40 cents per share. Proceeds

Co.

Sept 13 (letter ®f notification) 12,774 shares of common
(par $15), being offered for subscription by com¬

Price—$21

construction program;

Oct. 27

19.

stock

con¬

St., Derby,

Hunt Uranium Corp., Green
River, Utah
Aug. 22 (letter of notification) 1,200,000 shares of com¬
mon
stock.
Price—At par (25 cents per share).
Pro¬
ceeds—For expenses incident to
mining activities. Un¬
derwriter
Elmer K. Aagaard, 323 Newhouse
Bldg„
Salt Lake City, Utah.
—

Hydro-Loc, Inc., Seattle, Wash.
Oct. 25 (letter of notification) 1,674 shares of
capital
stock. Price—At par
($100 per share). Proceeds—For
working capital, etc. Office—603 Central Bldg., Seattle
4, Wash. Underwriter—Pacific Brokerage Co. of Seattle,
Wash.

Lander Valley

Uranium & Oil Corp.
Aug. 15 (letter of notification) 3,000,000 shares of com¬
mon stock
(par two cents).
Price—10 cents per share.
Proceeds—For expenses incident to mining activities.
Office—c/o Warren E. Morgan, President, 1705 East Firs)
South, Salt Lake City, Utah. Underwriter—Empire Se¬
curities Corp., Las Vegas, Nev.
•

LeCuno

Aug.

29

cents).

Oil

Corp., Jefferson, Texas

(12/5-9)

filed

450,000 shares of capital stock (par 10
Price^—Around $9 per share.
Proceeds —For

payment of liabilities and expenses incident to oil and
gas and mineral activities.

lon & Co., New York; and

Underwriters—Eastman, Dil¬
First California Co., Inc., San

Francisco, Calif.
Libby Furniture & Appliance Co., Chicago, III.
15 (letter of notification) $250,000 of 8% deben¬
Price—At par (in denominations of $1,000 each).

Nov.

Indian

Monument

tures.

Uranium

Mining

Corp.

Sept. 6

(letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds
For expenses incident to
mining activities.
Office—205 Byington Building,
Reno, Nev. Underwriter
—Richard L.
•

Dineley,, same address.

Industria

Electrica de Mexico, S. A.
Industry of Mexico, Inc.)

Nov.

7

filed

157,632

like amount of

by

share

rights

to

per

on

shares

(Electrical

representing

Proceeds—For expansion of operations and working cap¬
ital. Office—421-425 West Erie
St., Chicago, 111. Under¬
writer—None,

i

■

share

Dec.

13.

the

at

held
Each

of

rate

of

one

record

five

old

new

Nov.

28;

Underwriter

—

National

Financiera, S. A.,

a

Mexican corporation controlled
by the Mexican Govern¬
ment, has agreed to purchase all of the additional new
common

stock

not

subscribed

Insulated Circuits,

for.

supplied by
Proceeds—For general corporate purposes.
&

(par $1).
Businest

foreign securities of the free world

out¬

States.

Underwriter—I. I. I. Securi¬
ties Corp., 76 Beaver
St., New York, N. Y.
International Metals Corp. (12/12-16)
4 filed
400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—To finance ex¬
Oct.

ploration and development of mining properties of Recursos
Mineros Mexicanos, S. A., Mexican
subsidiary,

Price—$29.50

discharge note.

Office

—

Houston, Tex.

Under¬

writer—Gearhart & Otis, Inc., New York.
International Plastic Industries
Corp.
Oct. 12 (letter of
notification) 150,000 shares of common
(par 10 cents). Price—$2 per share. Proceeds—
For advances to Arliss
Co., Inc. for purchase of

ment, etc.
Y.

equip¬

Office

369-375 DeKalb
Ave., Brooklyn 5,
Underwriter—Kamen & Co., New York.
—

tAt Interstate Realty Investment Co., Inc.
(letter of notification) 230,000 shares

Nov. 22

common

stock

capital.

Under writer-

Lithium
Oct.

17

Developments, Inc., Cleveland, Ohio

filed

600,000 shares of common stock (par 10
Price—$1 per share. Proceeds^—For exploration
development costs, etc. Underwriter—George Searight, New York City.
cents).
and

Little Mac Uranium Co.
Price—At par (10 cents per share). Proceeds
mining expenses. Office—440 West 3rd North, Salt
City, Utah. Underwriter—Skyline Securities, Inc.,
Denver, Colo.
—For
Lake

Lost Canyon

Uranium & Oil Co.

(letter of notification) 3,000,000
assessable capital stock
(par one cent).
share.

per

Proceeds—For

operations.

Office

expenses

shares of non¬
Price—10 cents

incident to

niinins

Simms Bldg., Albuquerque, N. J»•
Underwriter—Mid-America Securities Inc. of Utah, ban
Lake City, Utah.
—

Maine Fidelity Life Insurance Co.

(12/12-16)
(par $!"/•
Price—$25 per share. Proceeds—For general corporat
purposes.
Office
Portland, Me. Underwriter—P. *v.
Nov.

10

filed

40,000 shares of

capital stock

—

Brooks & Co., Inc., New York.

Manhattan Mercury
Corp., Denver, Colo.
(letter of notification) 1,500,000 shares of com¬
mon stock
(par one cent), of which 1,400,000 shares are
for

account

stockholders.

mining
ver,

of

company and 100,000 shares for cer™"
Price—20 cents per share. Proceeds---^

Office—374 Denver Club Bldg., Den"
Underwriters—General Investing Corp., Ne

expenses.

Colo.

York; and Investment Service Co., Denver, Colo.
Mansfield Telephone
Co., Mansfield,

of class B

(par 10 cents). Price—$1 per share. Pro¬
ceeds—For purchase of land and construction
of build¬
ing. Office—40 Washington Ave.,
Dumont, N. J. Under¬

writer—None.

working

Oct. 26

stock

N.

and

Oct. 6

Proceeds—For investment.

of the United

expansion

None.

Co., Ltd., New York.

International Investors Inc., New York
Aug. 23 filed 200,000 shares of capital stock

side

—For

tal stock.

Inc., Belleville, N. J.

Underwriter—Alexander Watt

days

from the commencement of the offering, after which
unsold shares will be offered to public.: Price—$8.75 per
share to stockholders; $10 per share to public. Proceeds

Sept. 12 (letter of notification) 3,000,000 shares of capi¬

Nov. 10 filed 100,000 shares of 6%
cumulative convert¬
ible preferred stock (par
$5). Price—To be

amendment.

Shreveport, La.

Sept. 26 filed 100,000 shares of common stock (par 25
cents) to be offered for subscription by present stock¬
holders of record July 21, 1955 on the basis of one new

American

shares were first exchanged for four new
American
shares 1955 pursuant to a plan of
reorganization effective
Nov. 21. Price—At par. Proceeds—For
general corporate
purposes.

Life Underwriters Insurance Co.,

share for each four shares held; rights to expire 45
a

(par 100 pesos-Mexican

share) being offered for subscrip¬

common

expire

shares

stockholders

common

for each

American

common

currency—U. S. $8
tion

and to

Insurance Co.,

Ariz.

New

•

an

Cor®

Acceptance Corp., Salt Lake City, Utah
(letter of notification) $300,000 of 25-year 6%
junior subordinated debentures due Oct. 1, 1980. Price—

—To invest in

171,429 shares of com¬
being offered for subscription by

stock

Development

Sept. 1

Price—At market.

Great Lakes Oil & Chemical Co.
Sept. 29 (letter of notification)
mon

Mineral

1955

>

—

com¬

ceeds^-For mining expenses. Office—515 Deseret
Salt Lake City, Utah. Underwriter — Moab

;

None.

Packaging International, Inc.

June 30 filed 300,000 shares of common stock (par
10£)»
cf which 250,000 shares of for account of
company and

Franklin

Proceeds—For administra¬

engineering expenses. Office — Metropolitan
Airport, Canton (Norwood P. O.), Mass. Underwriter—

Home

Finance Co. of America at Baltimore

Oct.

share.

per

Home

-^Federated
Nov.

Price—$5

and

&

1

200,000 shares of common stock (par
Price—$27.50 per share.- Proceeds—For general
corn/'
rate purposes.
Underwriter — Israel Securities Cnr!'

activities.

Corp., Canton, Mass.
(letter of notification) 24,000 shares of common

3

Thursday, December

...

filed

5

per

Helio Aircraft

stock.

salesmen, deal¬

Brokerage

Corp., Ogden, Utah.

and to expand

Debentures to be sold by

Intermountain

Underwriter—United

Industrial

Israel
Oct.

—Tel
•

Union

Financial Chronicle

The Commercial and

(2344)

Nov.

4

ferred

(letter of notification)

Ohio

6,000 shares of

5% Pr *

stock.

Price—At par ($50 per share). Proceeds
—To reduce short term
indebtedness and for constructs
program. Office—35 Park Avenue

East,

Underwriter—None.

Mansfield, Ons-

Number 5486

182

Volume

...

The Commercial and

Financial Chronicle

(2345)

Manufacturers Cutter Corp.
Oct. 18

Natural Power Corp. of
Sept. 7 (letter of

common

assessable

(letter of notification) 300,000 shares of class A
stock. Price—At par ($1 per share). Proceeds—
To repay loans, and for new equipment and working
capital. Business—Cutting tools. Office—275 Jefferson
St., Newark, N. J. Underwriter—Paul C. Ferguson & Co.,
game city.
Marl-Gro, Inc., San Francisco, Calif.

share.

America, Moab, Utah
notification) 300,000 shares of

common

stock

(par

Proceeds—For expenses

tivities.

Price—$1
incident to mining

Underwriter—Western Bond

& Share

Okla.

per
ac¬

Co., Tulsa.
'

com¬

mon stock
(par one cent). Price—20
Proceeds—For expenses incident to

York.

Nov. 18 filed $25,000,000 of
40-year debentures due Dec.
1, 1995.
Proceeds—To repay advances from American
Telephone & Telegraph Co., its parent, and for
general
corporate purposes.
Underwriter—To be determined by
competitive bidding.
Probable bidders:
Halsey, Stuart

Mines, Inc.
(letter of notification) 300,000 shares of common
stock (par 35 cents).
Price —62y2 cents per share.
Proceeds — For expenses incident to mining activities.
Underwriter—Standard Securities Corp., Spokane, Wash.
Mascot

Aug. 1

Mexico Refractories Co.,

Mexico, Mo.

offered to stockholders of National Refractories Co.,
a
subsidiary, in exchange for 57,776 shares of capital
stock (par $5) of National on a share-for-share basis;
offer to remain open for 60 days from date of prospectus.
Offer is conditioned upon Mexico owning at least 80%
be

outstanding

of

National

stock

consummation

upon

of

exchange.
Mid-Union

Indemnity Co., Elgin, III.

10 filed 500,000 shares of common stock

Nov.

Proceeds—For

Price—$3

per

share.

purposes.

(par $1).

Underwriter—None.

general

corporate

Laboratories, Inc., Elkhart, Ind.
106,962 shares of common stock (par $2)
being offered for subscription by common stockholders

of

filed

9

Nov.

record

each 10 shares

29

the

on

basis

of

one

held; rights to expire

$20 per share.
machinery and

on

share

new

Dec. 12.

for

Price—

Proceeds—For expansion; purchase of
equipment; and for working capital.

Underwriter—The First Boston

Corp., New York.

Corp., New York (12/7)
Nov. 15 filed 400,000 shares of common stock (par 10
cents). Price—To be related to current market price in
over-the-counter

ceeds

To

—

market

increase

at

time

of

working capital.

offering.

Co.

Bids

—

Expected

(EST) on Dec. 14
York, N. Y.

—

of New York.

Mobile

received

up

to

11

&

Oil

assessable

capital stock

(par one cent). Price — Five
cents per share.
Proceeds — For expenses incident to
mining activities. Office—605 Judge Bldg., Salt Lake

City, Utah.
ver, Colo.

Underwriter—Skyline Securities, Inc., Den¬

Mohawk Silica

Co., Cincinnati, Ohio
Oct. 3 (letter of
notification) 3,000 shares of 8% cumu¬
lative preferred stock. Price — At par
($50 per share).
Proceeds—For processing plant, heavy equipment, and
working capital. Office—2508 Auburn Ave., Cincinnati,
Ohio.
Underwriter
W. E. Hutton & Co., Cincinnati,
—

Ohio.

Monogram Uranium & Oil Co.
Aug. 31, filed 500,000 shares of common stock (par $1),
Price—$2 per share. Proceeds — To make payment of
$675,000 to Four Corners Uranium Corp. under a pur¬
chase contract; to use $100,000 each to purchase mining

equipment, to pay for development and driving drift and
for exploratory drilling; and the remainder for
working
capital, acquisition of additional properties, and unfore¬
contingencies. Underwriter—Carr & Co., Detroit,

seen

slock.

Price—At

of

com¬

($1 per share). Proceeds—
Office—422 Continental Bank

par

For

mining expenses.
Bldg., Salt Lake City, Utah. Underwriter
Hackett investment Co., 701 Continental
pmp
city. '

—

Ackerson-

Bank

Bldg.,

Co., Salem, Mass.

(12/7)

Shore Gas Co., Salem, Mass.
(letter of notification) 1,289 shares of common
stock (par $10) to be offered for
subscription by minor¬
ity stockholders at rate of one new share for each five

Nov.

10

shares held.

Price—$14

per

share.

Proceeds—To repay

advances from New England Electric

System, the parent.

Underwriter—None.
Norwood Uranium,

Inc., Norwood, Colo.
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds—For mining expenses. Underwriter—Columbia
21

mon

stock

Securities Co., Denver, Colo.
Nu-Petro
Nov.

Corp., Dallas, Texas
4,000,000 shares of common stock (par 25
Price—30 cents per share. Proceeds—For pur¬

14 filed

cents).

property interests in both oil

and gas and nuclear situations.

Underwriter—None; but

offering will be made through licensed dealers. Jack
Frost of Dallas is Chairman of the Board and J. Cullen
Oak Mineral

& Oil

Corp., Farrnington, N. M.

Nov. 8 (letter of notification) 2,000,000 shares of common
stock (par five cents). Price—15 cents per share.
Pro¬
ceeds—For exploration and development and other gen¬
eral corporate purposes.

Underwriter—Philip Gordon &

Co.,

New

York.

Empire,

Inc.

(12/12-23)

Oct. 31

(letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—To
retire $17,800 of outstanding preferred stock; for equip¬
ment, inventory and working capital. Business—Chem¬
ical specialties. Office—865 Mt. Prospect Ave., Newark,
Underwriter—Vickers Brothers, New York.

N. J.
•

Olive-Myers Spalti Mfg. Co., Dallas, Texas
Oct. 24 filed 100,000 shares of 55-cent cumulative con¬
vertible preferred stock (par $6.25) to be offered for
subscription by common stockholders on basis of one
of

share

preferred stock for each 2,597 shares of com¬
held. The subscription warrants will expire

stock

mon

3:30

p.m.

(CST)

date

of

at

the 14th day following the ef¬
registration statement.
Price—To

on

the

stockholders, $9.50 per share; to public $10 per share.
Proceeds—For expansion program.
Business—Manufac¬
tures household furniture.

Son, Inc., Dallas, Texas.
Ottilia Villa,

,,r

Underwriter—Dallas Rupe &
...

.

#

Inc., Las Vegas, Nev.

750,000 shares of common
stock (par one
cent). Price—40 cents per share. Proceeds
For mining
expenses. Office — 414 Colorado Bldg.,
Denver, Colo. Underwriter—Shaiman & Co., same city.

—

National Old Line Insurance Co.
Nov.
<

par

\pat

1"

$2 }

fi
i

$2).

ceeds

—

Ark.

(12/7)

jed 50,000 shares of class A
hd 50,000 shares of class B
Price—To

be

supplied by

Underwriter—Equitable

Nations! Propane Corp.
13 filed

ferred

slock

$25)

and

bottled

g.m

Oilice—aV.

Pro¬

Corp.,

Nash¬

Pacific

L.

Carl

I.,

N.

shares

Y.

of

common

Underwriters—

3V1.
Loeb, Rhoades & Co. and Union Securities Corp.,
both of Nt"V
York.




International Metals &

•

Porto

Uranium,

lnce

Office—130 So. 4th St.,

Nev. Underwriter—None.

Uranium & Oil Corp.

(letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds — For mining expenses. Office — Newhouse
17

Bldg.,

Salt Lake City, Utah. Underwriter
Co., Tulsa, Okla.

—

Western

States Investment

Partridge
Sept. 21

Canadian

Explorations,

Ltd.

(Regulation "D" filing) 500,000 shares of com¬

$1). Price—60 cents per share. Pro¬
exploration and development costs. Office
—West Toronto, Ont., Canada.
Underwriter — Hunter
Securities Corp. and M. J. Reiter Co., both of New York.
stock

ceeds—For

(par

current

stock

general

market

(no par).
time

at

corporate

of

purposes.

Rico

Telephone Co.

100,000 shares of common stock (par $20),
being offered for subscription by stockholders of record
Nov. 28 at the rate of

one

share for each four shares

new

held;

rights to expire on Dec. 13.
The International
Telephone & Telegraph Co., the holder of 399,495 shares
(99.87%) of the outstanding stock has waived its pre¬
emptive rights to purchase 99,866 of the new shares.
Price—$21.45 per share to stockholders; $22.75 to public.
Proceeds

For construction program. Underwriter
Lynch, Pierce, Fenner & Beane, New York.

Merrill

—

—.

^ Professional Casualty Co., Champaign, III.
25 filed 250,000 shares of common stock (par $4).
Price—$10 per share.
Proceeds—For working capital,
Nov.
etc.

Underwriter—Professional
Casualty Agency Co.,
Champaign, 111. John Alan Appleman of Urbana, 111., is
President of the company.
Prudential

Loan Corp., Washington, D. C.
111,000 shares of 44-cent cumulative prior
preferred stock (par $5) and 55,500 shares of 10-cent par
stock

common

preferred

to

stock

be

offered

units

in

one-half

and

share

of

of

share

one

common

of

stock.

Price—$6.75 per unit. Proceeds—For general corporate
purposes. Underwriter — Straus, Blosser & McDowell,
Chicago, 111.
Puerto

Rican Jai

Alai, Inc.

(12/5)

Nov. 3 filed

1,250,000 shares of common stock (par one
cent). Price—$1.50 per share.
Proceeds—To purchase
property and for construction of sports stadium, etc.
Business—Playing of jai alai, with pari-mutuel betting
Office—San Juan, Puerto Rico. Underwriter—F. H. Crerie & Co., Inc., New

^Quebec

York.

Hydro-Electric Commission

(12/14)
Jan.

Nov. 25 filed $50,000,000 of 25-year debentures, due

1, 1981 (to be guaranteed unconditionally as to principal
by the Province of Quebec, Canada. Price—

and interest

To

be

supplied by amendment. Proceeds—To

repay

$8,-

000,000 in bank advances and to finance, in part, con¬
struction
program
for
the
period
September,
1955
through the year 1962. Underwriters—The First Boston

Corp. and A. E. Ames & Co. Inc., both of New York.
Radio Corp. of America
Oct.

filed

28

of 25-year 3V2% convertible
1, 1980 being offered
for subscription by common stockholders of record Nov.
17 on the basis of $100 of debentures for each 14 shares of
$100,000,000

subordinated

stock

held;

(flat)

per

additions

due Dec.

debentures

rights to

expire

on

Dec.

5.

Price—$102.50

$100 principal amount. Proceeds—For property
and

improvement; for further expansion and

service

and

facilities

electronics

in

Underwriters—Lehman

Brothers

and

related

Lazard

and

fields.

Freres

&

Co., both of New York.
•

Reading Tube Corp.,

Nov.

Bldg., Salt Lake City, Utah. Underwriter—
Co., Salt Lake City, Utah.

Proceeds—For mining expenses.

Paria

15-year notes, to be used to pay for

Park,

Sanj Francisco, Calif.

12 (letter of notification) 12,000,000 shares of com¬
mon stock.
Price—At par (one cent per share). Pro¬
ceeds
For expenses incident to mining activities. Office

mon

Hyde

(12/5)
shares of capital stock (par $5).
supplied by amendment. Proceeds—For

Aug

Oct.

For

(12/12-16)

common

development of the corporation's research, manufacturing

94,700

—Blyth & Co., Inc.,

Las Vegas,

(12/13)

North

Nov. 7 filed

16

filed

New York

(12/7-8)

shares of $1.25 cumulative con¬
vertible preferred stock, 1955 series (par $20), of which
120,000

80,000.shares are to be offered publicly and 40,000 shares
principally to a class of persons consisting of manage¬
ment and directors.
Price—To be supplied by amend¬
ment.
Proceeds—To redeem $1,485,665 of 6% deben¬
tures, repay

business of Shell Oil Co. in the Middle West.
{v

be

to (the

—

corporate purposes.

Little Rock,

—

Underwriter—Hemphill, Noyes & Co., New York.

* Paramount Mining & Development Corp.
Nov 23 (letter of notification) 2,500,000 shares of com¬
mon stock
(par 10 cents). Price — 12 cents per share.

Price—To be supplied by amendment.
Proceeds—Together with funds from private sale of
of 4%%

filed

Proceeds

stock

Fijock (par $1).
SI,950,000

offering.

common

Securities

100,000

10

—419 Judge

140,000 shares of convertible second pre¬
(par

Price—At

Pacific Employers Insurance Co.
Nov.

be

Guss Securities

—

Underwriter

Pittsburgh Coke & Chemical Co.

stock

ville, Tenu., and New
York, N. Y.
Nov,

•

common

amendment.

To selling stockholders. 'Office

16

Aug.

working capital. Office—Los Angeles, Calif. Underwriter

National Mercury Corp.,
Denver, Colo.

corporate purposes.
American Securities Co.

•

Old

Price—To

Oct. 24 (letter of
notification)

payable; for research and development; and

Nov. 22 filed

Looney of Edinburg, Texas, is President.

Roberts, Las Vegas, Nev.

Underwriter—None.

notes

general

related

Broadway, New

Nov, 21

Valley St., Seattle 9, Wash.

and

160,000 shares of

195

'ir National Loc-Bloc Corp., Seattle, Wash.

ing

^ Pipelife Corp., Tulsa, Okla.
29 filed 115,000 shares of common stock
(par $1).
Price—$4 per share. Proceeds—To pay current accounts
Nov.

Price—To

2315,

(letter of notification) 3,000 shares of capita!
par ($100 per share).
Proceeds—For
South 5th St., Las Vegas, Nev. Underwriter—Hennon &

(letter of notification) 200,000 shares of common
Prif>i'—50 cents per share. Proceeds—For work¬
capital and other corporate purposes. Office—1100

Proceeds—For expenses incident to
mining activities.
Office—206 N. Virginia
Street, Reno, Nev. Underwriter
—Philip Gordon & Co., Inc., New York, N. Y.

a.m.

Corp.; Kid¬
der, Peabody & Co. and White, Weld & Co.
(jointly);
Incorporated. Bids—Scheduled to be received
up to 11 a.m. (EST) on Dec. 7 at 441 Stuart
St., Boston
16, Mass.

stock.

stock.

Penn-Utah Uranium,
Inc., Reno, Nev.
Aug. 4 (letter of notification) 2,000,000 shares of com¬
stock (par three
cents). Price—15 cents per share.

mon

Nov. 22 filed

Shore Gas

•

Ml. Vernon Mining & Development Co.
Nov. 16 (letter of notification) 300,000 shares

share. Proceeds—For
Crescent Ave., Reading,

per

501

—

Blair & Co.

North

fective

Mich.

Pennsylvania at $14

purchase of mill. Office
Pa. Underwriter—None.

Nov. 1 filed $2,500,000 of first
mortgage bonds, series B,
due 1975. Proceeds—To
repay bank loans and advances
from New England Electric
System. Underwriter—To be
determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston

Room

at

chase of investments and

Uranium

Co., Salt Lake City, Utah
Aug. 22 (letter of notification) 5,500,000 shares of non¬

mon

be

to

(letter of notification) 3,857 shares of
common
(no par), of which 2,000 shares are to be offered
for subscription
by existing stockholders at $12
per
share, and 1,857 shares to non-stockholders who are resi¬

Pittman Drilling & Oil Co.,
Independence, Kan.
Sept. 6 (letter of notification) 60,000 shares of 6% noncumulative preferred stock (par $5) and 60,000 shares
of common stock (par 10 cents) to be offered in units of
one
share of each.
Price—$5 per unit. Proceeds—For
payment of note and working capital.1 Office—420 Citi¬
zens National Bank
Bldg., Independence, Kan. Under¬
writer—Dewitt Investment Co., Wilmington, Del.

Pro¬

Underwriters

Paine, Webber, Jackson & Curtis and White, Weld & Co.,
both

Un¬

& Co.
Inc.; Morgan Stanley & Co.; The First Boston
Corp.; Shields & Co.; Kuhn, Loeb & Co.;
White, Weld

Oct.

Minute Maid

the

share.

activities.

North

Miles

•

Nov.

per

Office—Professional Building,
Winnemucca, Nev
derwriter—Shelley, Roberts & Co., Denver, Colo.
New Jersey Bell
Telephone Co. (12/14)

&

Oct. 19 filed 57,776 shares of common stock (par $5) to

cents

mining

Nov.

stock

dents of

Nevada Mercury
Corp., Winnemucca, Nev.
Sept. 16 (letter of notification)
1,500,000 shares of

(letter of notification) 172,500 shares of common
(par 10 cents). Price—$1 per share. Proceeds—
For mining expenses and expenses incident to selling
a
soil conditioner. Office—681 Market St., San Fran¬
cisco, Calif. Underwriter—Globe Securities Corp., New
Oct. 6

gtock

Pe"n Precision Products, Inc., Reading, Pa.
3

__

non¬

cent).

one

41

a

bank

loan of $987,500, and for general
Underwriter—Emanual, Deetjen &

Co., New York.
Estate Clearing

Real

House, Inc.

(letter of notification) 270,000 shares of 7%
cumulative preferred stock (par $1) and 135,000 shares
of common stock (par five cents) to be offered in units
of two shares of preferred and one share of common
Sept.

14

unit.

Proceeds—For

working

stock.

Price—$2.05

capital,

etc. Office—161 West 54th Street, New York,
Underwriter—Choice Securities Corp., 35 East

N.

Y.

12th Street,

per

New York, N. Y.

Republic Benefit Insurance Co., Tucson, Ariz.
Sept. 30 filed 150,000 units in a dividend trust and

stock

procurement agreement to be offered to certain mem¬
bers of the general public who are acceptable applicants

Continued

on

page

42

42

Commercial and Financial Chronicle

The

(2346)

Continued from page 41
and who

it::1

to become active

are

Price—$2

pany.

unit.

per

policyholders in the

Proceeds—For

general

com¬

cor¬

porate purposes.

tp
r-T'-i
■'<

Underwriter—None; to be offered by
Rich, Robert Kissel and Sidney M. Gilberg, as Trus¬

Leo

(letter of notification) 1,000 shares of common
stock (par $1). Price—$7 per share. Proceeds—To Mrs.
Jewel R. Carter. Underwriter—Scott, Horner & Mason,

•

Revlon

VY k"

i

Nov.

Products

14 filed

373,900 shares of

i"»'i
to. i

I,',:
,

fe-L;

Sheraton

stock

33,900

to

are

common

be first offered

directly to

certain employees. Price — To be supplied
by amend¬
ment. Proceeds—To complete payment for a
plant

newly
acquired from Johnson & Johnson, in Metuchen, N. J.,
and for new equipment. Business—Cosmetics and toilet¬
ries.

I

r.

,

!:■{

>
■

V-,.

*

}»■'):

,

'"

5

v

\

Corp. of America

6V2% cumulative income sub¬
Nov. 1, 1980 to be offered
initially by the company (a) to its stockholders on tne
basis of $100 principal amount of debentures for each
25 shares of stock then held and (b) to employees 01
corporation and its subsidiaries. Price—$95 per $100 of
debentures to stockholders; and at par to public. Proceeds
general corporate purposes. Office—-Boston, Mass.
Underwriter—None, but Sheraton Securities Corp., a
subsidiary, will handle stock sales.

—For

Shumway's Broken Arrow Uranium, Inc.

Reynolds Mining & Development Corp.
22 filed 1,500,000 shares of common stock
(par
one
cent).
Price—50 cents per share.
Proceeds—For
working capital and mining expenses. Office
Moab,

(letter of notification) 300,000 shares of common
(par 10 cents). Price—$1 per share
Proceeds—
mining expenses. Office—Moab, Utah. Underwriter
—Ackerson-Hackett
Investment
Co., Salt Lake City,
Utah.

Nov.

—

Underwriter—The Matthew Corp. of
Washington,

•

j

K

<i>.

Richmond Homes, Inc. (12/2)
Oct. 25 filed 140,000 shares of common stock
(par $1),
of which 80,000 shares are to be sold for the account
of
the

and 60,000 shares for the account of two
stockholders. Price—$5 per share. Proceeds—

company

selling

'■M. V

^

To repay a mortgage note, for the
organization of a
wholly-owned acceptance corporation to be used for/

'

financing purposes, for plant additions and the purchase
of additional equipment, for the
purchase of land to be
developed as a new subdivision in Richmond, Ind., and

C.
U

for

H

working capital. Office—Richmond, Ind. Underwriter
Chicago, 111.

—Cruttenden & Co.,
•

Rochester

Nov. 4 filed

w
-

V-:)
{.
i

J"

V
i

the basis of

'■

'-I

one

(no par)

stockholders

common

share for each

new

seven

shares held

repay bank

Underwriters—The

Rogers Corp., Rogers, Conn.
Oct. 3 (letter of
notification) a minimum of 5,883 shares
maximum

a

stock

to

be

of

offered

7,453
to

shares

of

stockholders

class
on

B

common

basis

a

of

Price—($29 per share).
replenish working capital due to losses

sustained in recent flood.

>
'
...

For

Underwriter—None

* Southeastern States Telephone Co.
30 filed 100,000 shares of common stock (par $1).
Price
To be supplied by amendment. Proceeds — To
finance, in part, construction program. Office — San
Francisco, Calif. Underwriter — Central Republic Co.,
Inc., Chicago, 111.
_

San Juan Uranium

Exploration, Inc.
(letter of notification) 925,000 shares of non¬
assessable common stock
(par one cent). Price—12 cents
per share.
Proceeds—For expenses incident to
mining
activities. Office
718 Kittredge
Bldg., Denver, Colo.
Underwriter—Shelley-Roberts & Co., Denver, Colo.

Milling Co., Atlanta, Ga.
(letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For expenses incident to mining activities.
Offices—
Healey Building, Atlanta Ga., and 4116 No. 15th Avenue,

Underwriter —Franklin Securities Co.,

it Spurr Mining Corp.
9 (letter of notification) 300,000 shares of common
stock.
Price—$1 per share. Proceeds—For mining ex¬
penses. Underwriter—Cavalier Securities Co., Washing¬
Nov.

ton, D. C.

Strouse, Inc., Norristown, Pa.
(letter of notification) 60,000 shares
stock (par 10 cents).
Price—$1 per share.
For working capital.
Office — Maine and
Norristown, Pa. Underwriter—H. A. Riecke
Philadelphia, Pa.
Nov. 10

Sturm
Nov.

8

Sandia Mining &
Development Corp.
Sept 9 (letter of notification) 3,000,000 shares of
capital
stock (par one
cent). Price—10 cents per share. Pro¬
ceeds

:• V*-.

•

*o

4

;

i-.)

'

ii

::

i,.

f

r v>

.

■

»•
■

•

*

For

mining

V v
S-

Simms Bldg.,
Secu¬

subscription by
stockholders at rate of 1% shares for each
share held of
record Dec.
1, 1955 (with rights to expire on Dec.
31);
30,471 shares are to be issued in
payment for claims of
seven

individuals

and

firms

aggregating $30,471; and
by George E. Mitzel,
Price—$1 per share. Proceeds

300,000 shares are to be
President of company).

j.'

new

facilities; to pay off notes; and
Underwriter—None.

Sayre & Fisher Brick Co.,
Sayreville, N. J.
Sept. 30 filed 325,000 shares of
capital stock (par $1).
Price—To be supplied
by amendment. Proceeds
For
-prepayment of outstanding 5%%
sinking fund bonds due
1970; balance for general corporate

including

purposes,

additions and improvements and
working capital. Under¬
writer—Barrett Herrick &
Co., Inc., New York City.
Science
Nov. 10
stock

Press

of

New

Jersey, Inc.
(letter of notification) 15,620 shares of
common
par).
Price—$5 per share.
Proceeds—For

(no

building, equipment, working capital, etc.
Route

Xy

:

^

518,

a

mile

west

the

of

County of Mercer, N. J.

Borough

Office—Spur
of

Hopewell,

Underwriter—Louis

ling & Co., Jamesburg, N. J.

Lynchburg, Va.
notification) 1,000 shares

stock (par $1).
•

t,

'»

;
*

j t

L.

Carter,

Price—$7

President,

per

who

the

selling

Office—315 Krise
Bldg., Lynchburg, Va.
Scott, Horner & Mason,

Proceeds—To

share.

per

notes

pay

Busi¬
Office—21 Webster St.,
Underwriter—William T. Bowler & Co.,

insurance

I. O.

O. F. Bldg.,

agency.

Bradford, Pa.

Sulphur Exploration Co., Houston, Texas
Nov. 21 filed 600,000 shares of 6% convertible noncumulative preferred stock to be offered for
subscrip¬
tion

by

ferred

share

($2

stockholders

common

for

each

the

on

common

basis

share

of

held.

one

pre¬

Prioe—At

share). Proceeds—For construction and op¬
sulphur extraction plant.
Underwriter—To
be named by amendment.
L. D. Sherman & Co., New
York, handled common stock financing in August, 1954.

par

per

eration

of

Summit

Springs Uranium Corp., Rapid City, S. D.

Oct. 3 (letter of notification) 1,200,000 shares of
stock (par 19 cents). Price—25 cents, per share;
—For expenses incident

to

mining operations.

Harney Hotel, Rapid City, S. D.
Brickley, same address.

common

Proceeds
Office—

Underwriter—Morris

v

4




for

general corporate purposes. Underwriters—Lee
Higgin.
son Corp. and Harriman Ripley & Co.
Inc., both of New
York, and Estabrook & Co., Boston and New York.
Trans-American

Development Corp.

Nov. 14

(letter of notification 45,000 shares of 8% cumu¬
lative preferred stock
(par $1) and 45,000 shares
of
class A common stock (par $1) to be offered in

of

units

share of each class of stock.

one

working

capital.

Price—$1

per

Office—5225

unit

Wilshire

Blvd., Los Angeles, Calif. Underwriter—None.
Traveler

Publishing Co., Inc., Philadelphia, Pa.
(letter of notification) $247,000 of 5%%
con¬
vertible debentures, series A, due Sept.
1, 1965 and
Sept.

29

In

units

shares

common

consisting

of

(par 10 cents), to be
offered
$1,000 of debentures and 100

stock.

common

24,-

stock

of

Price—$1,010

unit.

per

Pro¬

ceeds—For

payment of indebtedness, expansion, estab¬
lishment of additional offices; professional and
editorial
assistance, advertising and promotion; and working
capi¬
tal.
Office—Widener Bldg.,
Philadelphia, Pa.' Under¬
writer—Albert C. Schenkosky, Wichita,
Kansas,

Travelfares, Inc., Seattle, Wash.
14 (letter of notification) 100,000 shares

Sept.

of non¬
common stock.
Price—At par ($1 per
share),-.
Proceeds—For repayment of loans,
working capital, etc!
Office—1810 Smith Tower,
assessable

Seattle, Wash. Underwriter
Corp., Seattle, Wash.

—National Securities

Tri-Continental Corp., New York
Oct. 27 filed 2,573,508 shares of common stock
(par
which will be issuable upon exercise of the

127, Arvada, Colo.

Swank Uranium

Drilling & Exploration Co.
Aug. 17 (letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per
share). Proceeds
—For

Drey-

incident to mining activities. Office—
Underwriter—Honnold & Co., Inc., Salt

expenses

Moab,

Utah.

Lake City, Utah.

Sweetwater

Uranium

ceeds—For

mining operations.

Salt Lake City,

Utah.

Office—605 Judge Bldg.,

Underwriter—Skyline Securities,

Inc., Denver, Colo.

Target Uranium Co., Spokane, Wash.
Aug. 12 (letter of notification) 1,000,000 shares
assessable

share.

stock

Proceeds

(par five

cents).

Price—20

of

non¬

cents

per

For mining expenses.
Office
726
Bldg., Spokane, Wash.
Underwriter
Percy
Dale Lanphere,
Empire State Bldg., Spokane, Wash.
—

—

Paulsen

—

Texas
Nov.

3

American

(letter of

stock

mon

Oil Corp.
notification) 600,000

(par 10 cents).

Price

—

50

Proceeds—For drilling expenses, etc.
tral

&

Bldg., Midland, Tex.

common

shares
cents

of

Office—216

Underwriter—Kramer,

com¬

share.

per

Cen¬

Woods

Co., Inc., Houston, Tex.

stockholder.

Underwriter-

Nov.

30

stock

(par $100).

filed

multiples thereof). Proceeds—To refinance
charge secured obligation. Underwriter

dis¬

it 20th Century Lites, Inc., Murray, Utah.
notification) 100,000 shares of common
stock (par $1).
Frice—$2 per share. Proceeds—To fi¬
nance outstanding
and future contracts and expansion
of operations. Underwriter—None.
Nov. 18 (letter of

Union

Corp. of America

-

Oct. 13 filed 797,800 shares of

stock

common

Price—Proposed maximum offering price
share.

per

Proceeds—To acquire

(no par).
unit is $5

per

life

one fire
insurance company, and one
mortgage loan firm. Under¬
writer—None; shares to be sold through directors and
officers.

one

Union Gulf Oil & Mining
Corp.

'

and

~

Sept. 9 (letter of notification) 660,000-shares of common
"-stock (par 10 cents). Price—50 cents
per share.
Pro-'
ceedst—For mining expenses.

Depver, Colo.

Office—510 Colorado Bldg.,'
Underwriter—Honnold & Co., same city.

S. Automatic Machinery & Chemical
(12/5-9)

Corp.

Nov, 4 (letter of notification) 300,000 shares of class A
cbinmon stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds

For general corporate
purposes.
Office—8620
Montgomery Ave., Philadelphia, Pa. Underwriter—Co¬
lumbia Securities Corp., 135
Broadway, New York.
—

Universal Service
Corp., Inc., Houston, Texas
July 8 filed 500,000 shares of common stock (par two
mills). Price—$2.50 per share.' Proceeds—For equip-,
ment, mining costs, oil and gas development, and other
corporate, purposes.
Postponed.

Underwriter

None.

—

Offering

—

Uranium

Exploration, Inc., Minot, N. D.
(letter of notification) 200,000 shares of com¬
(par 10 cents). Price—50 cents per share.
Proceeds—For mining operations.
Underwriters—None,
Nov.
mon

14

stock

but the

following have been licensed

company:
Fay C.
of Minot, N, D.

DeWitt and

to sell

Bryon

C.

stock in the

Varberg,

both

Utah-Arizona Uranium,
Inc., Salt Lake City, Utah
Aug. 1 (letter of notification)
600,000 shares of common
stock (par 16%
cents). Price—50 cents per share. Proceeds—For

expenses incident to mining activities. Office
—Greyhound Terminal Building, West Temple & South
Temple Streets, Salt Lake City," Utah: Underwriter—

Trans-Western Brokerage
Co., New
Utah

Orleans, La.

Grank, Inc., Reno, Nev.*

A

;

,

Aug. 15 (letter of notification) 270,000 shares of
stock.

Price—At par ($1 per share).

Bldg.,

mining activities.

Reno, Nev.

capital

Proceeds—'For ex¬
Office—312 ByinS"

Underwriter—Lester L.

LaFor-

tune, Las Vegas, Nev.

shares of cumulative
preferred
Price—To be supplied by
amendment.

Underwriter—Dillon,

and

McDonald,

—

Evans & Co., Kansas City, Mo.

penses incident to

Proceeds—Toward redemption of
presently outstanding

Inc., New York.

Tunacraft, Inc., Kansas City, Mo.
Aug. 22 (letter of notification) $295,000 principal amount
of 6% 12-year,registered subordinated
sinking fund de¬
bentures, dated Sept. 1,-1955- (with stock purchase war¬
rants). Price—At par (in denominations of $100 each

ton

200,000

first preferred stock.

purchase warrants presently outstanding. PriceEach warrant currently entitled the holder
to purchase
1.27
shares at $17.76
per
share for each one share
specified in the warrant certificate.

•

Co.

Sept. 9 (letter of notification) 3,000,000 shares of
capital
stock (par one cent).
Price—10 cents per share. Pro¬

$1),

common

stock

fil.

Superior Uranium Co., Denver, Colo.
Nov. 9 (letter of notification)
29,600,000 shares of com¬
mon
stock.
Price—At par (one cent per
share). Pro¬
ceeds—For mining operations.
Office—608 California
Bldg., Denver, Colo. Underwriter—Securities, Inc., P. O.

Shreveport, La.
of

Inc., Lynchburg, Va.

■

R.

share. Proceeds—To James

is

Tracerlab

construction

by that company of a new building which is to be
leased
by Tracerlab, Inc.; and for working capital for use

or

common

it Texas Eastern Transmission
Corp.,

Shenandoah Gas Co.,
Sept. 19 (letter of
f

& Co., Inc.,

20,000 shares of

Bradford, Pa.

offered

—

V

Sts.,_

(Ray L.), Inc., Bradford, Pa.

ness—An

Box

Sans Souci Hotel,
Inc., Las Vegas, Nev.
Nov. 9 filed
1,428,000 shares of common stock (of which
1,097,529 shares are to be offered for

capital.

.■

—

Astor

Price—$1

stock.

common

Proceeds—

>

—For construction of
for working

>.

Office

expenses.

Albuquerque, N. M. Underwriter—Mid-America
rities, Inc. of Utah, Salt Lake City, Utah.

*

t>»

—

of

(letter of notification)

—

4,

X-Ray Corp'

subsidiary; for advances to or for account of

Southern Mining &

Sept. 14

payable, premiums due insurance companies, etc.

.

Racing Association, Inc., Puerto Rico.

Aug. 19

k*

Proceeds—To repay bank debt of Keleket

700 shares of

Nov.

one

share for each four shares held.

Proceeds—To

(12/12-16)
debentures

convertible

Price—To be supplied by amendment'

.

stock

Sept. 27 filed 4,000,000 shares of common stock
(par 50
cents), of which 3,800,000 will be represented by
3,000,000
voting trust certificates and 800,000 warrants. These of¬
ferings are to be made in two parts:
(1) an offering, at
50 cents per
share, of 200,000 shares for subscription by
stockholders of record April
30, 1955, on a two-for-one
basis; and (2) a public offering of 3,000,000
shares, to be
represented by voting trust
certificates, at 58.8235 cents
per share. Proceeds—For racing
plant construction. Un¬
derwriter—None. Hyman N.
Glickstein, of New York
City, is Vice-President.

■"

V

Corp.
common

loans and for construction
program.
First Boston Corp., New York.

San Juan

rf

Electric

on Nov.
25; rights to expire on Dec. 12; unsubscribed
shares to be offered Jo
employees up to and including
Dec. 9. Price—$40.50 per share. Proceeds—to

and

!v»-

&

being offered for subscription by
on

v:

Gas

200,000 shares of

Nov. 7

stock

Phoenix, Ariz.
Atlanta, Ga.

of 5%

$1,500,000

1, 1970.

Proceeds—For

Underwriter—Reynolds & Co., New York.

D. C.

due Nov.

a

Utah.

)'•'

filed

18

Nov.

Development Corp. in connection with the

Oct. 31 filed $15,000,000 of
ordinated debentures due

(12/6-7)

(par $1),
of which 272,067 shares are to be offered
by the com¬
pany and 101,833 shares by certain stockholders. Of the
latter shares,

"M"i, i
:• (•,<
i* im

Corp., New York

3

Inc., Lynchburg, Va.

tees.

i

tt
U

*-

Thursday, December 1,
1955

Tracerlab, Inc., Boston, Mass.

•

Co., Lynchburg, Va.

Shenandoah Gas
Nov.

•'

.

4

>•

!"

..

I

I

Read & Co.

Valley Telephone Co., Silverton, Ore.
Nov. 3
stock.

tire

(letter of notification)
Price—At par

outstanding debts

common
Proceeds—To re

10,500 shares of

($10 per share).

and short term notes.

—Daugherty, Butchart

& Cole, Inc.,

Underwri er

Portland, Ore.

t

Number 5486

182

Volume

,

,The Commercial

and Financial Chronicle

Varian Associates,

Palo Alto, Calif. (12/6)
16 filed $2,000,000 of 15-year 5% convertible I sub¬
ordinated debentures due Dec. 1, 1970.
Price—To be
supplied by amendment.
Proceeds—For purchase of
.land, buildings and equipment for engineering, market¬
ing and manufacturing, and for working capital and
other corporate purposes.
Underwriter— Dean Witter
& Co., San Francisco, Calif.
•

Nov.

Virginia Electric & Power Co.

Zenith-Utah Uranium Corp.
Sept. 14 (letter of notification) 6,000,000 shares off class
A

—For

mining

same

—

Probable bidders: Stone & Webster Securities
'Corp.; Merrill Lynch, Pierce, Fenner & Beane. BidsExpected to be received up to 11 a.m. (EST) on Dec. 6
bidding.

1703, 15 Broad St., New York, N. Y.

at Room

Wagon Box Uranium Corp., Provo, Utah
Nov. 21 filed 2,000,000 shares of common stock

Price—25

cents).

.five

cents

per

share.

(par

Proceeds—To

explore and acquire claims, for purchase of equipment
for working capital and other corporate purposes.
P.

Investment. Co.,

Provo,

Utah

and

Honolulu, Hawaii.

assessable

|

Prospective Offerings
Atlantic

Aug.

directors
small

L.

are

amount

of

common

stock

(not

more

non¬

than 75,000

Atlas Plywood Corp.
Oct. 12 it was announced company plans to issue and sell
$3,000,000 of 5% sinking fund debentures and $3,000,000
Proceeds

increase^ inventory and to retire subsidiary indebt¬
Meeting—The stockholders

on

Nov.

2

proposal to increase the authorized

a

voted

to

common

1,400,000 shares to 2,400,000 shares to provide
exchange of stock for minority shares to Plywood,
Inc., for conversion of proposed new debentures and for
possible future acquisitions of property. Underwriter—
for

Birmingham, Ala.

For

Underwriter—Graham

&

Co., Pitts¬

&

Carolina Telephone Co.
(letter of notification) 18,500 shares of com¬
mon
stock
(par $10), being offered to stockholders
'through subscription rights on the basis of one share
Western

for each five held

Price

25.

$12

—

of Oct. 25; rights to expire on Nov.

as

share.

per

Office—Weaverville, N. C.
& Co., Charlotte, N. C.
•

Western

Proceeds

—

For

expansion.

Underwriter—R. S. Dickson

Natural Gas Co.

share

ferred

Nov.

on

for

each

rights

30;

20

shares

of

common

stock

held

to

expire about Dec. 14.
Price—
$30 per share. Proceeds—For exploration and develop¬
ment programs.
Office—Houston, Tex. Underwriter—
White, Weld & Co., New York.
•

W.utaker

Cable

Corp.,

North Kansas City, Mo.
Nov. 3 filed $500,000 of convertible sinking fund deben¬
tures due Nov. 1, 1970. Price—To be supplied by amend¬
ment.

Proceeds—To retire bank loans, to acquire addi¬
and for working capital and general

tional

equipment

—

Denver

Nat'l

Bldg., Denver, Colo.
writer—Floyd Koster & Co., Denver, Colo.

Under¬

Woods Oil & Gas Co., New Orleans, La.
Aug. 29 filed 250,000 shares of common stock (par $5).
Price—$8 per share. Proceeds—For retirement of debt;

may be Van Alstyne, Noel
Offering—Expected before end of

purchase from

it of $3,000,000

equipment trust certifi¬
cates, series GG, to be dated Jan. 1, 1956 and to mature
in 15 equal annual instalments of $200,000 each from
Jan. 1, 1957 to 1971, inclusive. Probable bidders: Halsey
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Boston

&

Maine

Allen &
Du

cember.

Chicago, Milwaukee, St. Paul & Pacific RR.

Station

Salomon

by the

company,

&

Bros.

Hutzler; Kidder, Peabody & Co.

holders

additional

Southern

&

shares of
the

on

National

common

basis

of

one

stock
new

(par $10) to stock¬
share for each nine

(subject to approval of stockholders in Jan¬
Price — $30 per share. Proceeds — To increase

stock.

mon

—For

mining

Office—Virginia Truckee Bldg.,
Underwriter—Cayias, Larson, Giaser,
Emery, Inc., Salt Lake City, Utah.

working interests in certain oil
certain

and gas leases and

&

Wycming-Gulf Sulphur Corp.
971,000 shares of capital stock (paf 10
cents), of which 700,000 shares are for company's)ac¬
count and
271,000 shares for account of two selling
stockholders.

Price—On the over-the-counter market at

then

prevailing price, but not less than $2 per share.
Proceeds—For auxiliary equipment for Cody
plant;|for
acquisition of additional site, and related activities.:
'

Wytan Oil

& Gas Co., Newcastle, Wyo.

Sept. 29 filed 254,000
Price—At
of
wi

common stock (par $1).
the market. Proceeds—To August Buschmann,

shares of

Seattle, Wash., and members of his family. Under*
iter—None.
a'
-

YeMowknife Uranium Corp.
Aug. 19 filed 1,000,000 shares of common stock (par

under

one

agreements |for
claims; for working capital and reserve funds; and for
other

purchase

and

option

general corporate
purposes.
Canada. Underwriters—Gearhart &
C rerie

Toronto,
Otis, Inc. and F4 H.
Co., Inc., both of New York City. Offering—

&

Office

it

was

announced

public

Price—$1,100

stock.

per

unit.

to

sometime in December.

^ Dallas Power & Light Co. (2/15)
reported company plans to issue and sell

$10,000,000 of first mortgage bonds. Proceeds—To repay
bank loans and for new construction. Underwriter—To
be determined

by competitive bidding.

Probable bidders:

Stuart & Co. Inc.; The First Boston Corp.; Salo¬
Bros. & Hutzler; Kidder, Peabody & Co. and Merrill

Halsey
mon

ties Corp.;

(jointly); Union Securi¬

Equitable Securities Corp.; Lehman Brothers;
Incorporated. Bids—Tentatively scheduled

&

Co.

for Feb.

15.

Blair

sell

a

corporate purposes.

Co., Inc., Chicago, 111.
the

tt

Yub? Consolidated
16
filed

11 me

"an

r

(12/6)

f

;

405,365

shares of capital stock (par $1).
supplied by amendment.
Proceeds—/To
stockholders.
Underwriter—Blyth & Co., Ihc.

To

selnng

Gold Fields

be

iancisco and New York.




—

Delaware

This will represent the first public

company's stock.
Power &

Sept. 28 it was

Light Co.

Laboratories

class

Stockholders

ago.

A stock fi¬

Laboratories

of

Broadcasting firm.

than 50 cents per share.

more

reported company plans to issue and sell

was

additional first mortgage bonds.

Underwriter—To
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Blair & Co. Incorporated.
Pacific Electric Co.

Nov.

15

it

issue

of

debentures, together with common

chase

Proceeds—To

warrants.

Stone

&

directors

announced

was

derwriters—H.

M.

Byllesby

are

bank

reduce

& Co.

considering an
stock pur¬

(Inc.)

loans.

Un¬

and Hayden,

Co., New York.
Power

April 14 it
between

Corp.

announced company may issue and sell

was

$10,000,000

and

bonds. Underwriters—To

$12,000,000

first mortgage
competitive
Stuart & Co. Inc.;
of

determined by

be

bidding.

Probable bidders: Halsey,
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
ner & Beane
(jointly); Lehman Brothers and Blyth &

(jointly): Glore. Forgan & Co.: and The First
Corp.. Offering—Expected early in 1956.

Ford

Nov.

6

Motor Co.,
it

Detroit, Mich. (1/18)
a
public offering of class A

announced

was

stock

common

is

shortly

expected

after

Jan.

1,

1956.

The stock to be sold will be 6.952,293 shares (or 15% of
the 46,348,620 shares to be owned by the Ford Founda¬
tion following reclassification of the stock).
Price—It

reported that the offering price

v/as

was expected to be
$60 to $70 per share. Underwriters—Blyth & Co.,
Inc.; The First Boston Corp.; Goldman, Sachs & Co.;
Kuhn, Loeb & Co.; Lehman Brothers; Merrill Lynch,

Pierce, Fenner & Beane; and White, Weld & Co.
tration—Expected the latter part of December.

Regis¬

Gulf States Utilities Co.

May

it

16

reported

company may issue and sell
mortgage bonds if market conditions
Underwriter—To be determined by competitive
was

first

bidding.

Probable

bidders:

Lehman

Brothers;

Merrill

Halsey, Stuart & Co. Inc.;
Lynch, Pierce, Fenner &
White, Weld & Co. (jointly); Salomon Bros.
and Union Securities Corp. (jointly); Kuhn,

Beane and
&

Hutzler

Loeb

& Co. and A. C. Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬

Houston

Aug. 26,

Gas & Oil Corp.
applied to the FPC for authority to
961-mile pipe line from a point near Baton

(Texas)

company

construct

a

Rouge, La., to Cutler, Fla., to cost approximately $110,382,000. It plans to issue and sell $81,200,000 of bonds,
about

$20,000,000 of 5 lk % interim notes (convertible into
stock), and over $8,700,000 of common stock.
would be sold, together with the notes, in units.
Underwriters—Discussions were reported to be going on
with Blyth & Co., Inc., San Francisco, Calif., and Scharff
& Jones, Inc., New Orleans, La.
preferred
Stock

Houston Lighting & Power Co.
31 it was reported company may

Oct.

sell

announced that the company expects to
financing early in 1956,

addition to bond

early next

$30,000,000 of bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Smith, Barney & Co., Lazard
Freres & Co. and Blyth & Co., Inc. (jointly); Lehman
Brothers, Union Securities Corp. and Salomon Bros. &
year

about

Hutzler

(jointly);

Securities

Kidder,

Offering

Corp.

Peabody
—

&

will

Dec.

be

11th

East

135

received

Bros.

&

(12/13)
by

the

company,

at

Room 301,

Place, Chicago 5, 111., up to noon

13 for the

mature

in

bidders:

(CST)

purchase from it of $8,700,000 equip¬

ment trust certificates,

to

Equitable

Co.;

Expected in February or
,

* Illinois Central RR.

Probable

undertake some common stock

probably first to stockholders (this is in

Mont

be determined

and

Nov,

Du

County Electric Co.

July 18 it
some

on

of

Mont

years

discount of not

Essex

Bids

stock. Proceeds—For gen¬
Underwriter—A. G. Becker &

180,000 shares of its common

offer

some

March.

Danly Machine Specialties, Inc., Chicago, III.
Nov. 21 it was reported company plans to issue and

eral

B.

Duquesne Light Co.
Nov. 28, it was announced SEC has authorized Standard
Power & Light Corp. to sell not more than 10,000 shares
of the common stock of Duquesne Light Co. on the New
York
Stock Exchange
by negotiated sale to a pur¬
chaser who will buy at the prevailing market
prices,

Nov. 28 it was

—

Indefinitely postponed.

Proceeds—To build

make charcoal brickettes and chemical by¬
products, notably furfural. Underwriters —William R.
Staats & Co., Los Angeles, Calif.; and Carl M. Loeb,
Rhoades & Co., New York.
Pvegistration — Expected
plant

of Allen

stockholders.
This offering will be un¬
Kuhn, Loeb & Co. and Van Alstyne, Noel

Oct. 10 approved formation of

on

offering is expected

shortly after Jan. 1 to consist of $900,000 of 5% sinking
fund debentures and 90,000 shares of common stock to
be offered in units of a $1,000 debenture and 100 shares

Lynch, Pierce, Fenner & Beane

cent), cf which 700,000 shares are to be sold for account
of
company and 300,000 shares for account of Stanpan
Uranium Corp,
Price—$1.50 per share.
Proceeds—For
payments

19

corporation, following is¬

stockholders

ly); Stone & Webster Securities Corp.

Cumberland Corp., Lexington, Ky.

of

filed

account of certain selling stock¬
Underwriter — Hemphill, Noyes & Co., New

York.

Nov.

to

Co. handled Du

permit.

Inc.

for

shares

holders.

to the

properties, and in exchange
working interests and properties. Price—Shares
to be valued at an
arbitrary price of $4 per share. Pro¬
ceeds—To acquire properties. Underwriter—None.
10

125,000

2

its

$10,000,000

Sept. 26 it was reported company plans early registra¬
tion of 175,000 shares of common stobk, of which 50,000
shares are to be sold for the account of the company and

uranium

for such

Oct.

Craig Systems,

expenses.

Wycotah Oil & Uranium, Inc., Denver, Colo. ~
Nov. 10 filed 1,500,125 shares of common stock (par one
cent) to be offered only to the owners of percentages of
of

capital and surplus.

Price—At par (10 cents per share). Proceeds

Carson City, Nev.

owners

uary).

to

nancing

shares held

• Woodstock Uranium Corp., Carson City, Nev.
(letter of notification) 3,000,000 shares of com¬

Underwriter-

stock.

around

be withdrawn.

Citizens

Madison

announced that

Dec.

derwritten.

at

Bldg., Chicago 6, 111., up to noon

the purchase from

6 for

Dec.

Dolly

Co., Inc.

Room 744,
(CST)
it of $7,500,000 equip¬
ment trust certificates, series UU, to be dated Jan. 1,
1956, and to mature in 30 equal semi-annual instalments
of $250,000 each from July 1, 1955 to Jan. 1, 1971, in¬
clusive.
Probable bidders: Halsey, Stuart & Co. Inc.;
Union

on

Dairies, Inc.
right

Broadcasting Corp.

was

on

offered

Boston

A-

received

be

revision

Nov. 21

Mont

Florida

Long Island City, N. Y.
Nov. 17 it was announced that this company is consider¬
ing additional financing. Underwriter—Schuster & Co.,
Inc., New York. Offering—Expected sometime in De¬

will

its

Laboratories, Inc. of 944,422 shares of common stock as
a
dividend, contemplates that additional shares will be

would be issued.
Cavitron Corp.,

Foremost

future date to give its stockholders the

Co., New York.

Federal

cipal amount of series B 5% income debenture bonds
(plus 5% interest for the year 1955) in exchange for
each of the outstanding 274,597 shares of 5% preferred
stock (par $100). Not in excess of $28,874,564 of bonds

(12/6)

that

announced

was
a

purchase

RR.

Oct. 20 stockholders approved a plan to offer $105 prin¬

Bids

it

(12/1)

Bank, Atlanta, Ga.
Nov. 8 the directors 'recommended the sale of 100,000

of
corporate
structure, etc. Underwriter —
Straus, Blosser & McDowell, Chicago, 111. Offering—To

to

less

Baltimore & Ohio RR.

Underwriter—Barret, Fitch, North &
Co., Kansas City, Mo. Statement has been withdrawn.

Office—414

debentures,

York.

Bids will be received by the company at 2 Wall Street,
New York 5, N. Y., up to noon (EST) on Dec. 1 for the

corporate purposes.

Wonder Mountain Uranium, Inc.,
Denver, Colo.
Aug. 12 (letter of notification) 2,380,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds
For expenses incident to mining activities.

New

1955.

Nov. 10 filed

183,003 shares of 5% convertible preferred
.stock, 1955 series (par $30), being offered for subscrip¬
tion by common stockholders on the basis of one pre¬

convertible

Co.,

10

Oct.

15

intends at

stock from

(par one cent). Price — Five
cents per share.
Proceeds — For expenses incident to
mining activities. Office — 718 Title Guarantee Bldg.,

burgh, Pa. and Birmingham, Ala.

(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Carl M. Loeb, Rhoades
& Co.; Blyth & Co. Inc. and The First Boston
Corp.
(jointly); White, Weld & Co. and Shields & Co.(jointly);

year.

5j/2% convertible subordinated debentures.

be

by competitive bidding. Probable bidders:
Langley & Co. and Union Securities Corp.

C.

Aug. 10 it

approve

stock

common

W.

suance

of

Underwriter—To

program.

determined

Underwriters—Probably Union
Securities Corp. and
Smith, Barney & Co., both of New

—-To

financing planned for Dec. 13). Pro¬

construction

Dolly Madison International Foods Ltd.

President, announced that the
considering the sale to the public of a

shares) early next

ceeds—For

Nov.

England,

now

and preferred stock

43

Lehman Brothers.

City Electric Co.

1, B.

edness.

Warrior

Mining Co., Birmingham, Ala.
Sept. 29 (letter of notification) 6,000,000 shares of

Proceeds

York.

and

Underwriter—H.

(five cents).

Office—45 East Broadway, Salt
Underwriter—Bel-Air Securities Corp.,

city.

(12/6)

To be determined by competitive

Price—At par

expenses.

Lake City, Utah.

filed 125,000 shares of cumulative preferred stock,
1955 series -(par $100-). Proceeds—For construction pro¬

Underwriter

stock.

common

Nov. 4

gram.

(2347)

30

series 41, to be dated Jan. 1, 1956
equal

Halsey,

semi-annual

Stuart

&

installments.

Co. Inc.; Salomon

Hutzler; Kidder, Peabody & Co.

Continued

on

page

44

TT

(2348)

Continued from page
,

•

!- ;■
J'1 .'*
(-

'

•

!

'■'* I
<

!'

V'*'

•!

to

4

'

l;>i
l;
V" A

.

A ■

....

secure

However, he stated, it will also be necessary
large portion through public financing. It is

a

.quite likely that a major part will be in the form of debt
financing. No such financing is contemplated during the
current year, nor have the times or methods of financ¬
ing been definitely determined. Underwriter — Kuhn,

n*

.

Joseph L. Block, President, announced that a
substantial portion of the required funds for the com¬
pany's expansion program (estimated to cost approxi¬
mately $260,000,000 for three-year period 1956-1958)
will be derived from retained earnings and depreciation
3,

reserves.

H
*»0

Inland Steel Co.

Nov.

/L,

Peabody & Co. and White, Weld & Co. (jointly); Equi¬
table Securities Corp. and Union Securities Corp. (joint¬

43

Uoeb &

Co., New York.

^ Kimberly-Clark Corp., Neenah, Wis.
''

ly); Smith, Barney & Co.; Lehman Brothers
& Co. (jointly); Glore, Forgan & Co.

18

pany

has filed

Commission
364-mile

a

pipeline off-shore the coast of
River to the Gulf Coast of

Sabine

this gather¬
ing system will cost approximately $150,000,000. Type
of financing has not yet been determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
notes, convertible into preferred stock at maturity, and
common stock).
Underwriter—Salomon Bros. & Hutzler,
the State of

It is estimated that

Mississippi.

Nov.

)

ther

New

f

:

-S

?-

5>

tion

Outboard, Marine & Manufacturing Co.
Nov. 22, Joseph G. Rayniak, President, announced that
the company plans to offer to its common stockholders
the right to subscribe to 213,845 new common shares
(par 83Vs cents) in the ratio of one new share for each
10 held on a record date to be determined and announced

it

22

announced that

was

the

company

plans fur¬

financing, the nature and extent of which has not
yet been determined, except it is not the present inten¬
to pay for

additional

,

be
an

common

stock.

Underwriter—Blyth & Co., Inc.,

$37,000,000.

York.

New

;■ ;\»

Proceeds—To

further expansion, estimated to cost

additional

sell

to

used

ip

Korvette

«'.'•»
iv

Nov. 21 it

,„•;.

"•f
>f

"

'"'l

f

W

»»

following

Nov.

v-yf

>.V

stock

w-£

$40

V.\.

il.

*

/
'5

C

■

•

JJ

I"-'»■

I..

held; rights to expire on Dec. 7. Price—
share. Proceeds—To increase capital and surplus.

per

now

Magnavox Co.

y.

wi
*

share for each

Nov.

14

it

(1/9-13)

announced

plans to issue and
sell 120,000 shares of convertible preferred stock (par
$50). Price—To be nanjied later. Proceeds—For research
and development program and working capital. Under¬
writer—Reynolds & Co., New York. Offering—Expected
was

week of Jan.

Dec.
J
\

9, 1956.

company

Registration

—

Planned for about

15.

later.

Concurrently, 100,000 shares are to be offered to
the public for the account of two selling stockholders.
Proceeds—Together with funds from a long-term loan
of $3,700,000 from an insurance company, to be used for
expansion and general corporate purposes.^ Underwriter
—Morgan Stanley & Co., New York. Registration—Ex¬
pected in the near future.

(1/17)
Oct. 28 it was reported company plans to issue and sell
about
$20,700,000 of first mortgage bonds.
Proceeds
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. Bids—Expected Jan. 17.
Pennsylvania Electric Co.

Pennsylvania Electric Co.
Nov.

Pacific

RR.

(12/8)

expected to be received by the company up to
(CST) on Dec. 8 for the purchase from it of $2,625,000 equipment trust certificates due annually from
are

noon

Jan.

1, 1956 to 1971 inclusive. Probable bidders: Halsey,
& Co. Inc.; Salomon Bros. & Hutzler; Kidder,
Peabody & Co.

Modern Homes Corp. (Mich.)
Nov. 21 it was reported company

may

offer

publicly

some

common

stock."

Business
Manufactures prefabricated homes.
Offices—Dearborn, Mich., and Port Jervis, N. J. Under¬
writer—Probably Campbell, McCarty & Co., Inc., De¬
troit, Mich.
—

T* Muzak Corp.

(12/13)
by Union Electric Co. of Missouri,
315 No. 12th Blvd., St. Louis 1, Mo.,
up to noon (CST)
on Dec.
13 for the purchase from it of
$500,000 of 7%
cumulative preferred stock (par $1,000) of Muzak
Corp.
and an interest in a
royalty agreement with Muzak Corp.
Bids will be received

New Orleans Public Service Inc.

Oct.

V

'.

V

n

y

■•'

n

V.

'•*

i

.

reported

was

company

sale

bidders:
W.
C.
Langley
&
Co.;
Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane; White,
i*WeId & Co.; Kidder, Peabody & Co. and Stone &
Webster Securities Corp.
(jointly); The First Boston
Corp.; Equitable Securities Corp. and Union Securities
Corp. (jointly); Blair & Co. Incorporated.
Bids—Ex¬

v

"

'.>

pected

'

L /

on

Jan. 11.

annually Dec.
Stuart

lV

&

15, 1956-1970.
Inc.; Salomon

Co.

Probable bidders:
Bros.

&

Hutzler;

Halsey,
Kidder,

Peabody & Co.
■

*

New

'*tf:

Nov.

York,

18

vote

it

New Haven & Hartford
announced

was

stockholders

on

Dec.

21

will

non-convertible

100-year 5% debentures, dated
Jan. 1,1956, in
exchange for present $55,363,000 par value
5% convertible preferred
stock, series A, on the basis
of $105 of debentures for each
$100 par' value of pre¬

v

■

A

i-'j
S

,

ferred

paid
of

stock, plus $5.25
dividend

as

$72,638,265

of

after

on

in

cash

($5

preferred for

new

5%

of

year

which

will

1955); and

non-convertible

general

be

include

'V

1955

A

&

bonds

interest.

plus

$5.25

Northern States

March

29

for

it

was

1955

in

(Minn.)

$600,000

announced

that new capital require¬
approximate $31,000,000.
Presenl
these funds will be obtained tem¬

proceeds of the sale of additional bonds late in

1955

or

'(

Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc. and The First Boston Corp.

Merrill Lynch,

„■




(joint¬

Pierce, Fenner & Beane,

Kidder,

Industries, Inc.
authorized

stockholders

11

of

stock

a

issue

new

(no

of

30,000

value), of which
planned to initially issue 10,000 shares bearing a $5

shares
it is

common

new

dividend

having

and

redemption

a

Proceeds—For expansion

share.

par

value of

$105

of

stock.

common

plans, to

sell

about

Underwriter—Bache

&

Co*,,

—Rauscher, Pierce & Co., Inc., Dallas, Tex.

(12/7)

• Texas & Pacific Ry.

by the company at 233

Bids will be received
New York,

Broadway,

(EST) on Dec. 7
purchase from it of $1,400,000 equipment trust
cates, series R, to be dated Jan. 1, 1956 and to
in 10 equal annual instalments from Jan. 1, 1957
N. Y., up to noon

Probable

inclusive.

Salomon Bros. &

for the
certifi¬
mature

to 1966,
Halsey, Stuart & Co. Inc.;

bidders:

Hutzler; R. W. Pressprich & Co.; First
and Fort Worth National Bank

National Bank in Dallas

(jointly).
•

(1/31)

Utilities Co.

Texas

18, the directors authorized the sale of additional
shares of common stock to raise approximately $15,000,Proceeds—For further investment in

000.

subsidiaries

of

derwriter—To
Probable

other

for

and

corporate

determined

be

common

competitive

by

stocks

Un¬

purposes.

bidding.

bidders:

Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Secu¬
rities Corp.; Lehman Brothers and Bear, Stearns & Co.
(jointly); The First Boston Corp. Offering—It is antici¬
pated that the new stock will be marketed during the

•

Van Norman Co.

Nov.

stockholders

30

approved proposals to change the

of company

name

create

to Van Norman Industries, Inc. and to
authorized issue of 400,000 shares of $2.28 con¬
preferred
stock
(cumulative
to the extent
The directors do not intend at this time, to sell

an

vertible

earned).

preferred shares.

any common or

Westcoast
Nov.

it

21

and sell

Transmission

reported

was

Ltd.

Co.,

company

plans to issue

now

$20,000,000 of securities, probably
debentures and stock. Bonds are expected to

publicly

in units of

over

Pure Oil Co.

Western

convertible

Riddle
Nov. 2 it

debenture

issue.

This would not

exceed

Airlines, Inc.

announced company plans soon to offer to
its stockholders the right to subscribe for
1,200,000 addi¬
tional shares cf common stock (with an
was

oversubscription
privilege). Underwriter—Eisele & King, Libaire, Stout
& Co., New York.

Sept.

second

Thomas B.

of the

of

McCabe,

President, announced t
will probably be undertaker

proposals

indebtedness

Wash.

holders
on

or

capital stock
each
per

Jan.

Feb.

24

(par $20)

•

eight shares held.
share.

30

shares

$10).

Price—To

Proceeds—To

& Gas

stockholders

of

cumulative

Proceeds—For

increase

one

new

be not

share

less than

capital and

sur¬

by

Hunter

s>fated, will

Co.

additional stock

shares

convertible

exploration

issuance

preferred
and

Securities

Corp.,

110,000

stock

(par

drilling program,

common stock

not underwrite the

of

financing

New

new

of one

of

which

to

is entitled

it

owner

as

Western

Westpan Hydrocarbon Co.

of

was

announced Sinclair Oil Corp.

has aSr^
of 384,389

has

stock (52.8%).
The time in which
sell their holdings has been extended by

Westpan

Sinclair may
SEC to Dec.

21,

been

1955.

devised

On

Nov.

it

28

was

reported a

Westpan will

the

which

under

additional $2.50
of facilities to

purchase said shares at $12 each, plus an
per share contingent upon installation

Whirlpool-Seeger Corp.
14

it

was

150,000 shares of
Nov. 21.

Sachs

&

York
June

29

was

York, who

preferred issue.

reported

that

common

stock

offering 0
week 0
Co., Inc. and Goldman,
secondary

a

It was

and

it

was

announced

mortgage bonds, in

an

mortgage bonds due 1978.

sey,

Weld

&

Co.

and

A.

Shields

for

pay

series of it*
amount not ye

of a new

aggregate

issue of

new

construction
4%% Hr

$560,000

Underwriter—May be

by competitive bidding.

Stuart & Co. Inc.:

contemplates tni

company

an

Proceeds—To

probably to refund

mined

withdrawn.

County Gas Co., York, Pa.

issuance and sale later this year
first

planned the

was

Underwriters—Blyth &
Co., both of New York.

determined.

authorized

Underwriter—Previous

handled
is

plans to offer its stock¬
18, 1956, the right to subscribe
for 100,000 additional shares
of
the basis of

rate

the

at

with the SEC to divest itself of its investment

•

Bank, Seattle,

on

stock

common

increase output of liquid hydro-carbon.

Underwriter—Blyth & Co., Inc., Seattle, Wash.

Aug.

it

from

on

or

Maryland's outstanding
stock. The offer of the remaining 72,091 shares is being
underwritten.
Price—$41 per share.
Proceeds—To be
applied toward the payment of all dividend arrears on
the first 7% cumulative preferred stock, amounting to
$19,250,070. Underwriters—Morgan Stanley & Co., New
York, and Alex. Brown & Sons, Baltimore, Md.

Nov.

South Texas Oil

etc.

$150,000,000

announced bank

record

before

for

to

(1/18)

was

of

authorized

Proceeds—For expansion program.

Seattle-First National
Nov. 22 it

the

40,000,000 shares from 10,000,000 shares

authorized

$50,000,000.

increase

to

on

additional

334,177

plan

stock to

the

record

shares, regardless of class, held. The
Baltimore & Ohio RR. will subscribe for 55,696 shares

holders

approved

of

and com¬
Nov. 22, 1955, were given the
before Dec. 7, 1955 for 128,597
stock

preferred

share for each six

major financing program
by next spring. No decision has yet been reached as
to the precise
type, amount or date of financing. Stock¬

and

of

stock,

7% cumulative preferred

non-cumulative

stock

mon

shares

common

4%

March 2 it

Paper Co.

20,

Maryland Ry.

23 holders of first

shares

$50,000,000 and would be issued at the discretion of thi
directors any time within the next 12 months. Under¬

Un¬

privately. Proceeds—For new pipe line.
derwriter—Eastman, Dillon & Co., New York.

right to subscribe

April 9 stockholders approved the possible issuance oi
a

per

Underwriter

program.

first quarter of 1956.

New York.

will

eerly 1956.

ly);

Texas
Oct.

Nov.

plus.

p^ans contemplate
porarily from short-term bank loans to be repaid from

If

(jointly); Kidder, Pea¬
body & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Harriman Ripley & Co. Inc. and Stone &
Webster Securities Corp.
(jointly). Bids — Tentatively
scheduled for Feb. 28.

Pike County Natural Gas Co.
Oct. 17 it was reported company

in¬

cash, which will
Dealer-Manager—Francis I. du

Power Co.

Noyes & Co. and Drexel & Co.

be placed

Co., New York.

ments

(12/7)

first of next year.
Proceeds — Estimated at
$2,000,000, will be used to pay for expansion pro¬
gram. Underwriters—Porter, Stacy & Co., Houston, Tex.;
and Muir Investment Corp., San
Antonio, Tex.

$85

Pont
'

series

—To repay

received

the

(b)

mortgage bonds, series B, dated Jan. 1, 1956, in
exchange for present $69,179,300 of 4V2% convertible
general income mortgage bonds, series A, due
July 1,
2022, on the basis of $105 of new series B bonds for each
of

to issue and
$10,000,000 first mortgage bonds due 1986. Proceeds
bank loans and for new construction.1 Under¬
writer—To be determined by competitive bidding.
Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Union Securities Corp.; Kuhn, Loeb & Co., Leh¬
man Brothers and Blyth & Co., Inc.
(jointly); Hemphill
sell

about

come

$100

be

Pigeon Hole Parking of Texas, Inc.
Oct. 22 it was announced that about 800,000 shares of
additional capital stock would be offered for public sale

Scott

approving a plan of exchange providing for the
issuance (a) of not
exceeding $58,131,150 of new un¬

J'

will

stock

program.

by the company, at Room 1811,
Bldg., Philadelphia 4, Pa., up to noon
(EST) on Dec. 7 for the purchase from it of $11,595,000
equipment trust certificates, series EE, to be dated Jan. 1,
1956, and to mature $773,000 annually from Jan. 1, 1957
to 1971, inclusive.
Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Bros. & Hutzler;; Kidder,
Peabody
& Company.

RR.

on

secured

Pennsylvania RR.
Bids

RR.

8 it was announced
company plans to issue and
sell $6,600,000 of equipment trust certificates to mature

1

preferred

writer—Probably Smith, Barney & Co., New York.

New York Central

Nov.

"

of

construction

• Texas Electric Service Co. (2/28)
28 it was reported company plans

Nov.

(1/11)

plans

'Probable

\

v

it

of 60,000
shares
of
cumulative
preferred
stock
(par
$100).
Underwriter—To be determined by competitive
bidding.

"

'•

24

reported company proposes issuance and

was

$8,000,000

Suburban Station

$1,000,000 of convertible debentures and

,"A ,
W.-Wvv

of

and

Nov.

(1/17)

early next year.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Kuhn, Loeb & Co.; W. C. Langley & Co. and
Glore, Forgan & Co. (jointly); Kidder, Peabody & Co.;
The First Boston Corp.; Smith, Barney & Co.; Harriman
Ripley & Co. Inc. Bids—Expected Jan. 17.

IStuart

•;

it

7

sale

Proceeds—For

Missouri
Bids

1 :

York.

—

;.

••"' '•'

new

one

York.

-5
.

the basis of

on

Underwriter—Cyrus J. Lawrence Securities Corp., New

WW

»

(par $10)

10 shares

'1

v

reported company is considering a public

was

Long Island Trust Co., Garden City, N. Y.
22 stockholders of record Nov. 10 were given the
right to subscribe for 10,000 additional shares of capital

i>>n> n.
V
i
r »f.n

/

Co.

consolidation of nine stores into one
parent corporation which is expected before the end of
the year.
Underwriter—Carl M. Loeb, Rhoades & Co.,
New York. Offering—Expected in January.
offer,

.dm*

(E. J.)

pro,

Underwriters—For stocks: Hornblower & Weeks"
York; Wiliam R. Staats & Co., Los Angeles, Calif •
First California Co., San Francisco, Calif.
Bonds
be placed privately.

may

gas

company plans to sell in
19^

Proceeds—For construction

stocks).

common

New

the

from

7 it was announced

gram.

com¬

submarine

Louisiana

1, 1955

approximately $10,000,000 of new securities (probably
$7,000,000 first mortgage bonds and $3,000,000 preferred

application with the Federal Power
certificate of necessity to build a

an

for

Thursday, December

. . .

Power Co.

Nevada

Southern
Nov.

and

Gathering Corp., Houston, Texas
David C. Bintliff, President, announced

*■

■''

1

and Riter

Offshore
Nov.

Chronicle

Commercial and Financial

The

44

deter¬

Ha
White,
It is &190

Probable bidders,

C.

Allyn

&

Co.

possible that issue may be placed

& Co. Inc.;

(jointly).

privately.

Number 5486

182

Volume

. .

.

The Commercial

and Financial Chronicle
(2349)

Colleges, Universities Now Place
Half of Assets in Commons

Mutual Funds

Well

By ROBERT R. RICH

holdings of

Sales Record May Be Set

tion

of

Vance, Sanders

figures for 38 institu¬

of

excess

an

of 30.5%

average

cash,

$2,100,000,000

6.0%

in

56.5%

in

in

and about $10,000,000 ahead of the final total for 1953.
The funds of the group, with aggregate net assets of approxi¬

estate

real

1.5%

from

had contributed to this year's record sales of tnese

funds, Mr. Vance observed that:
"After 31 years, there can be no doubt that the mutual fund

sidered

ing

'arrived,' despite many early obstacles. It seems
Qiat it is the essential soundness of investment
company operations that has been responsible for the now wide¬
spread public acceptance of mutual funds."
has

analyzed

assets

to

be

part

A

mutual fund supervised by
Calvin Bullock, Ltd., amounted to
Inc.,

fiscal

year

1955, according to

Oct. 31,

ended

the

for

$188,54.8,815

ago,

by

in

Ruth

Mrs.

power,

Conference and
decline in
the

Energy

On

a

share basis, the value

per

the end of fiscal 1954
Oct. 31, 1955. To the
latter
figure
should
be added
$ 6/10th cents per share, reflect¬
$2,124

to

at

$2,541

on

ing the distribution made from net
profits realized during 1955.
If
such

not been dis¬
tributed, the asset value per share
would have been $2,627 on Oct.
profits

had

31, 1955, Mr. Bullock said.
Total

dividends

for

sharp
stocks,

he

out, were 8.4 cents per
5% higher than in 1954.
have amounted, since in¬
or

They

"Ill

"the

the

visors

Our technical ad¬

confident that uranium

are

continue to be the

will

fuel

nuclear

most

for

Mrs.

im¬

many

approxi¬

com¬

panies in the United States, Can¬
ada and Africa.
"We intend to
ties," she said.

machinery is built up,
productivity is .increased.

as

All of this, of course, presupposes
a

continuation

confidence

of

on

the

part of businessmen and in¬
vestors. Initial public reaction to

S.

vincing demonstration of the frag¬
ile nature of this very
clement of confidence in

important
our econ¬

Clinton

Senator

opinion the need for uranium will
continue

expand with the de¬

to

velopment of new nuclear weap¬
for

ons

his

guess

the

that estimates

was

amounted
close

of

$134,615,495
third

asset value per share on

$15.79, which

quarter and $13.64

for

the

a

the

year

Oct. 31

of

plies with

total
this

of

8,527,432

year,

8.245,678

which

a year

on

com¬

earlier,

adjusting for the stock split. The
number
reaped

of the

a

of
new

"are

too

con¬

shareholders

also

high at the close

latest quarter.




of

Technology.

pation

in

common

stock

In

If

stemmed

considerations
stocks

of

the

that:

National

approve an

■

-X

■

Securities

seasoned

increase in

If the increase
new

shares

1956.
is approved, the

will be

riod

of

Of

of

38

the

second in
ft-year history. The -

fund's

first was on
tho

etnrk

is the

April 20, 1946,

was

split

tWo

a

when

for one.

engage

Partners

Philip A. Batchker, Jerome
Eaton, Joel A. Batchker,
Z. Gelsey, general part¬
and Joseph S. Eaton, limited

ners,

of

($35,363,000)

79.2%;
($38,270,000)

of

from offices at 10 East 49th

Street,
City. William G. Damprincipal of the firm.

New York
roth

is

a

Now Texas Fund

Management Company

those

average

stocks last June

Wesleyan
University

Family Fund Investors1
Family Fund Investors is en¬
gaging in a securities business

pe¬

justify
their
ownership."

the

common

were

over

institutions,

than

more

56.5% in
30

risk

the

with

to

years

increased

Virginia

HOUSTON, Texas — The firm
name
of
Bradschamp
&
Co.,
Texas

National

has been

Bank

Building,

changed to Texas Fund

77.5%; Case Insti¬ Management Company.
Technology ($16,182,000)
66.7%; Pomona College ($10,402,000) 65.6%; California Institute of
Technology
($48,100,000) 63.0%;
of

J

Amherst

($33,064,000)

Washington

&

61.8%;
61.2%;;

61.9%;
($9,724,000)

Lee

Dartmouth

($52,209,000)
($39,241,000)

Wellesley

60.6%; together with the Univer¬

sity of Chicago, Cornell, Harvard,
Oberlin, Pennsylvania, Princeton,

Swarthmore,

Williams and Yale.

None of the colleges and universi¬
ties

covered

the

by

had

survey

of its investments

stocks.

common

|

Stocks for Income

|

Series,

fund

one

organiza¬

than $110 million
nearly half of its total net as¬

tions, has
or

more

through

I

jI National Stock Series J
fund, the
a mutual
primary objective of which is to provide an

investment in
of

a

National

High

120 Broadway,

of

and

$233,865,304

compared
with
months earlier,
on

Oct. 31,

The

six

$188,463,009

and

1954.
report shows

latest

the railroad

in

an

in¬

$335,606,525 at Oct. 31,
$54,691,643 from assets

Net investment

income, amount¬

ing to $12,383,225, or 23 cents a
share, was paid to shareholders in
four quarterly dividends.
Net

profits realized

This

value.

asset

with

compares

securities, amounting to $17,108,751, or 31 cents a share, will
be paid to shareholders
in De¬
cember.

9.1%

ment

changes

offer the

Stock

At the

12.4% of total net

or

$28,251,825,

12.1%,

or

six

H. I. Prankard,
discussed invest¬
in the

made

metals

on

The

largest

ments

were

of

a

were

total

in

invest¬

groups

com¬

$19,685,350, or

In fifth

place

of

000

Investments

as

follows:

at the

share

has

industrial machinery,

$11,669,232;

oil,

$8,423,506;

$9,705,206;

auto

manu¬

electrical equipment, $5,002,212.

—.

1

Address

...

State

City

-

'invest.in

ATOMIC SCIENCE

invest¬

"

thfoygh

a

MUTUAL FUND.

7.03%

new

compared

a year ago

MUTUAL

re¬

high

is

with

a

and $210,-

FUND,

Inc.

designed to provide
managed investment,

in

inception in February,

a

ago

net

asset

variety of

value

from

grown

,

$10.88

a

In the year's

to $11.91.

were

investment
per

income

and

made
31

Continued

on

in activities

resulting

from Atomic Science.

to

cents

share capital gains.

imr

companies participating

per

shareholders of 31 cents per share

facturing, $6,033,712; retail trade-

department stores, $5,187,056; and

D 144
i

•

The

year

utilities,

describing

of the

Investors, Inc.

$2,418,270.74,

in other industries

$5,000,000 each were

9, Mass.

prospectuses

receivables 12.52%

and

reached another

1954.

of more than

me

ATOMIC DEVELOPMENT

$1,374,415.13

'

of

"

cash

Southwestern

aircraft companies with $17,-

362,675.

Funds.

accounting for 11.40%'
"
"
10.92%
"
"
7.76 %
"
"
7.41%

Food

Governments,

sources

7.7%.

Company

Organization and the shares of your

Name

the:

in

Banking

Oct. 31, while auto parts

or

Please send

light and power

in fourth position with $17,-

607,018,
were

stocks

The Keystone

50 Congress Street, Boston

assets was in stocks,
emphasis on stocks of

the

Electric

with

COMMON STOCK FUNDS

prices.
end, 87^2%

Natural gas industry

months ago.

place

BOND, PREFERRED AND

goods.

Oct. 31, compared

on

Cus todian Funds

in the iron
companies providing services or
accounted for producing consumers' non-durable

industry

asset value
with

year

investments

steel

I

greatest values in rela¬

tion to market

with

and

|

*

Keystone

ten

report,

President,

company's

decrease.

5
: >

t-

your

his

In

2nd,

$66,030,028, or 28.2%, on April 30,
1955—a

J

*

Corporation

from sales

of

$59,728,763 based on total market pany's effort to keep its assets in¬
value as of Oct. 31,''representing
vested in the stocks that seem to
23.9% of the Series aggregate net

I
-J

Per-share asset value, according

consist¬

ing of bonds, preferred and com¬
mon stocks industry amounting to

I

New York 5, New York

of $280,914,882 a year earlier.

to the company's annual report,
and steel, and non- was $5.99 — up 79 cents for the
industries, according year after adjusting the beginning
to a study of the semi-annual re¬ value of
$5.49 for a 29-cent distri¬
port on the National Securities bution of the previous year's se¬
Series.
curity profits.

managed

»

|

;-V

Securities &

I
■

Established 1930

iron

Series,

I
;

of their

relatively high current yield
and reasonable expectance of its continuance with
regard to the risk involved. Prospectus
and other information
may be obtained from your in-

ferrous metal

Securities

I

J

diversified group
stocks selected be-

common

cause

set value concentrated in the rail¬

roads,

1

Investing in Common

Affiliated
Fund,
New York's
biggest investment company,
reached a new year-end high in

1955—up

tion,

split-up

companies

higher income return

delivered early $11,670,475; building and construc¬ period, payments

in March.
The

common

productive investments and (2)
they have offered a sufficiently

assets

investment

directors 7.9%,
were
three-for-one stock

meeting Jan. 26,

(1)

as

tual

ment in

split and will ask

to

partner.

important

have established excellent records

Drugs

a

City,

business.

Samuel

have

to

seems.

from

of the largest of the nation's mu¬

Non-ferrous

voted

A.

York

securities

a

are

invest¬

This

ments.

Hits New

Rails, Metals

'

third

have

New

way,

Affiliated Fund

Half of Assets

servative/

stockholders to
the author¬
ized capital stock from 3 million
that to 12 million shares at the annual

earlier,

two-for-one

Yale, Univer¬

Batchker, Eaton & Co. has been
formed with offices at 120 Broad¬

Research

Axe-Houghton Fund B

number of shares outstanding
a

1980

or

with

quarterly report notes

reached

1975

Splits 3-for-l

stock split last April.
The

civilian power

that date

$16.28 at the end of the- previous

acijusting-

17,000

31. Net

compares

both

National Invests

quarter of the

present fiscal year on Oct.

was

the

at

Institute

that $30,782,025

assets

by

to

the

total

need

will

world

free

tons of uranium for

Fund's

large

in

Formed in New York City

vestment dealer or:

defense and atomic-pow¬

warships and planes; and that

ered

omy.

Boston

Ander¬

P.

son, who told the American Min¬
ing Congress recently that in his

the illness of the President of the

United States, he said, was a con¬

those of

are

vestment

In

U.

as our

partici¬

in

investing in these equi¬

continue

of

gradually

their

gated $249,042,081 on Oct. 31 last,

mining

economic

population expands,

Harvard,

stock holdings is in

uranium

of

and

our

to

included

.

sponsored by National Securities
&
Research Corporation, aggre¬

support of her faith in the
future
of
uranium
she quoted

as

stocks, 6.0%
mortgages and

mately $2,650,000 or 13.1% of Axe
Science and Electronics Corpora¬
common

most

years

have

that

increase

Total net assets of the National

that

noted

Axe

study

a

reports

to

chusetts

to come."

years

stocks

higher levels

in

place," she said,
created is beyond any

heat

tion

even

used

first

known control.

000,000 and distributions from net
profits to more than $39,000,000.

activity is for

energy

process

of

institutions

less than 42.5%

share¬

industrial

fusion

these

financial

period

a

of
Chicago, University of
Rochester, Princeton and Massa¬

a

hydrogen bomb is still years
away from the realm of reality.

corporation in 1932, to over $58,-

Over the longer term, Mr. Bul¬
lock said, the outlook for economic

to

uranium

assured

Axe

that

the

college

over

H.

the

pointed

share,

Mrs.

holders

portant

1955,

led

and

^

from

of

sity

Bullock, President.
This
Axe, President of the Axe Science
figure represents an increase of
& Electronics Corporation, said in
$38,079,457 over the net assets at
an
apologia.
the end of the previous year and
Although such views were ex¬
establishes a new high for yearpressed
at
the Geneva Atomic
end assets.of the fund.
of Dividend Shares increased from

estate

addition

years

be used for generating

soon

industrial

investments

comrnon

endowments

exploding the hydrogen bomb

may

in

real

In

mining

have

Hugh

with

2.3% in other investments.

nothing to fear from
speculation that the process used
in

endowment

similar
figures
Vance, Sanders &
for
35
colleges and

year

50.4%

uranium

of

the

$1,721,000,000, exclusive of college
plant, showed an average of 38.8%
in bonds, 6.5% in preferred
stocks,

Uranium Stocks
Holders

of

Batchker, Eaton & Co.

in

"It is quite evident from

tute

Company

Apologia For
stocks

in

income-produc¬

an

of

compiled

Mrs. Axe Gives

Shares,

of Dividend

range

Harvard's

universities

Net

The

account.

clear

Sharply
Quarter

mar¬

30, 1955.

$442,022,629
$3,074,767 for Bates College, in
Lewiston, Maine.
The current figures include in¬
vestment in college plant if con¬

Pointing out that nearly 2,000 investment dealers, in all parts

article

"Brevits" points out that:

to

Boston.

In

5.5%

mortgages and

June

on

or

stocks,

stocks,

in other investment at

endowments

size

preferred

and

funds

shows

in bonds

common

ket values

$1,250,000,000, include Massachusetts Investors Trust,
Boston Fund, Massachusetts Investors Growth Stock Fund, Canada
General Fund, Century Shares Trust and The Bond Fund of
mately

Rise

Com¬

tions, with total endowment

group.
This is more than $2,000,000 above sales for the full year 1954

Dividend Assets

&

accompanying

an

tended

A table of

in

In

stocks,

pany.

investment dealers

likely to exceed $100,000,000 in 1955, it was stated today by
Henry T. Vance, senior partner in Vance, Sanders & Company.
*i
This estimate was based on reported sales for 1955, through
Nov. 4, of over $86,000,000 for the six funds of the Vance, Sanders

business

colleges and

common

bi-weekly publica¬

are

equally

in

are

investment

it is reported in the current issue
of "Brevits,"

since establishment of the original mutual
investment company in 1924, sales of shares offered by a single

mlitlial fund underwriter through independent

the

leading

universities

For the first year

of the country,

half

over

45

GET THE FACTS AND FREE PROSPECTUS

Atomic Development Securities Co., Inc.
1033 THIRTIETH STREET, N. W.

page

46

WASHINGTON 7, D. C.

I

1

46

via

b

v.

ing

f i:

negotiation,
shares

250,000

'

\n

<G

to

'
K

f'" '!'

ic.1

market

V" k -u

the

issue

new

u-

appears

its

ing

i\,
X.

■

in

to. be a bit con¬
fused at the moment, what with
the Federal Reserve Board keep-

i|i

!"

situation

The

kl.l

'7 j"'1"'!■

•

service

possible the
payment of
investment income dividends
once

Tuesday,

day,

Co.;

Power

&

bids

open

foot

brake

hard

the

credit

of

on

other

officials

while

of the money market,
the mortgage field, com
talk of early easing of

segments

notably
'

i,-,

'!'»

tinue

to

to

give

it

for

money

To

add

York

will
of

to

ft i
w.

r
v,

'!u'

spice, the New.
Authority,
bids for another batch

open

^Dividend

Thru way

the market since

»>

b»

It*

,1; !"h c
k.

»>.
v

W»V

frv,»*«

t-

j-i *.i

■

,

,>V

iV

'! *-7'

?*

'it

,Jt»

V',.)v
W

:•
1*|

fit

v..

»

.i'
*>.. rt t

<.1"-

V^
I'V 4».

r»j

offering.

\>

Two
v

k'7''

?i

■/"r'

V.

V:'

•

Double

"in

tract

though

f;;

•'/

out

days failed to

offered

at¬

buyers

of

even

yield

basis

a

on

3.215% and 3.27%, respectively.
got

to

away *

fairly

a

start
but
demand
seemed to peter out, leaving the
bulk
of
both
undertakings
as

promising

•'

•t

brought

listing,

rush

any

Both
■

A

last few

the

of
a

C

inventory,

I

least

at

the time

for

being.

Debentures Offered:

The

company

tive

the

national

in

Edison

of

N.

also

ac¬

the

into

Northrop's principal offices and
plant facilities are in Hawthrone,
Calif.

—

with

Palmdale

Anaheim,

plants in

Radio-

Ontario.

and

building

currently

is

new

offices and factories in Van Nuys,

Y,

Dr.

J.

for Reconstruction and Development and

representatives of

as

v

to

final

clearance

V

just what develops out of the
impending offering by Consoli¬

7,

V

•>

dated

see

••■*,•

Co. of N. Y.

Edison

The

big

Eugene

R.

Garner

and

metropolitan

added

be

work¬

to

just

is

about

last took

long-term
decided

bids

bond
to

a

on

year

look at

a

market

out,

wait

arranging interim financing of its
in

needs

It still
of

has

recourse

to the bal¬

million revolving
with banks so that, if
it should decide it could perhaps
wait a little longer. But feeling is
that the prospective issue will be
ance

a

$100

fund set up

on

the market

on

schedule.

U.

short-term

S.

securities, or used to
outstanding
short-term

Outstanding capitalization as of

$1

value

par

$7,000,000

Northrop

short-term

$576,686

Radioplane

and

notes

stock,

common

New

short-term notes.

of which

the

has

company

listing

of the

Associated

came

on

a

to market

on

Tues¬

Staats

Inc.

:

It

for

applied

debentures

on

4

j

•

V

■

v-

of

four

of first

bids

for

refunding,

30-year mortgage bonds.
The best

was

rate.

coupon

100.149 for

The

Webber,

Allyn

otjier

314%

three

Jackson

Diego

Gas

&

Electric's

undertaking, $18 million
30-year, first mortgage bonds,
attracted no less than eight bids,
all for 314s, ranging downward
the

99.069 to

a

successful

low of

Dominick,

Co.,

&

Cur¬

&

Co.,

First

A.

C.

tt*

Incorpo¬

Hemphill,

set by Ameri¬

were

Jonathan

shareholders

at

B.

Lovelace

all

set

assets

with

quoted

record

new

Securities

market

prices
31, 1955, were $27,181,663,
equivalent to $8.10 per share on
the
3,354,201
shares
of
capital
at Oct.

outstanding. This com¬
with net assets of $16,800,-

tender

of

Issues

2,422,714
Oct.

I.

Next

Fore

duPont &

Francis

Net

gain

Co.,

Bateman,

Eichler

&

Richards

&

Co., E. F.

Sutro

&

Hutton

Ryons

&

&

Co.,

Co., Bingham, Walter &

Standing—Robert A L.
Dillon,

Read

&

exclusive

remit the proceeds to the

inthree

investor

approximately

monthly.. payments

equal

V <".

/

r.:

amounts

on

for

its

held., Bank

services

charges

under" the

plan

'will be paid by Wall Street Man¬

agement. Corp.,
writer

of

principal under¬

Wall

Street

Investing

FINANCIAL NOTICE

outstanding

at

fiscal

share

per

the

on

to

24.5

2,759,437

of

shares

during

the

year.

with

compares

or

year

number

in

the

on

assets

Fund

were

with $380,979

a year ago.

fund's

principal industrial
holdings are oils, 14.2%; chemiCals-drugs, 11.8%; electric power,

7.9%;

and

electrical

tronics 7.0%.
six
of

Oil Well

Wealth

elec¬

Acquisitions during

months

Canada,

Interstate

and

McGraw

include Ford

Minneapolis-

Electric,

Assurance,
Gas

and

Colorado

Halliburton

Cementing Co. Common-

Stock

Fund

was

founded

1952 by North American Secu¬

Company,

more

vestment

than

which

currently

$100,000,000 of in¬

company

supervision.

funds

Notice

shore

waters

of

area

The Dayton Power

| service company

the

of

Gulf

Period Ended

Louisiana, Texas, Missis¬

Aldrich

the

board

is

Vice-Chairman

of

is

also

director

a

Reflector Co. and

of

Wheeler

corporator of
the Provident Institution for Sav-.

ings of Boston.

a

>

Light Company has
generally available to its security hold¬

accordance with the provisions of
Section 11(a) of the Securities Act of 1933,

in

amended, an earning statement for the
period ended September 30, 1955,
after the effective date of the
Company's Registration Statement, SEC File
No. 2-11091, (effective September 22, 1954),
relating to the $15,000,000 3% Series Bonds
Due 1984 of the Company. On request, the
Secretary of the Company will mail copies
of such earning statement to security holders
of the Company and other interested parties.
as

12 months

which began

The Dayton

STEPHEN

HARTWELL,

Vice-

President of the Atomic Develop¬
ment
Securities- Company,
Inc.,

post

President,

of

it

the newlyVice-

Executive

wa^announced

September 30, 1955

The Dayton Power and
made

Jncorporated In¬
vestors, Boston,, h leading mutual
fund, and holds'the same office
with Incorporated Income Fund.
He

Earning Statement for Twelve Months

ers,

Mr.

under

and

Light Company

coast

sippi, Alabama and Florida.
of

Security Holders of

to

engineering

Power and Light Company

Street, Dayton 1, Ohio

25 North Main

December 1, 1955

REDEMPTION NOTICE

by

Steers, Jr.

The

securities" company is the
distributor of Atomic Develop¬
ment Mutual Fund,
Inc., an openend

investment

company

cializing in the securities

MERCK & CO Inc
RAIIWAY, N. J

spe¬

of

com¬

panies active in the atomic energy

Redemption of

of. field.

$1,265,124 as of
Oct. 31, Robert L.
Cody, Executive
ViCe-President, reported. This

compares

been

specializes in oil and gas
operations in the inland and off¬

Mr.

Steers

promotion

Stock

has

which

fiscal

ended Oct. 31, 1954.

Commonwealth
total

share

per

average

outstanding

out¬

This
income
of

net

23 cents

2,134,126

shares

has

and construction

President Newton I.

number

rities

Inc.,

created

standing

in

Co.

&

has been promoted to

$676,599,- equivalent

was

Aldrich

D.

director of J. Ray Mc-

a

John E.
coast

also

to

announced

Vice-President

Lotspiech, the fund's

representative

quarters

at

Beverly

$4.25 Second

the

Preferred Stock

of

west

with

head¬

Hills,

Calif.

He will continue to
represent the
fund in five far Western
states.

Mr.

Hartwell, who also serves
Treasurer of Atomic
Develop¬
ment Mutual
Fund, joined the se¬
curities company on
July

Merck
deem

8s

on

entire

will re¬

Co., Inc.,

February 2, 1956

issue

standing

of

143,664

shares

$4.25

its

of

the

out¬

Second Preferred Stock. Shares

as

1, 1954

after
an

serving for

official

of

several years

the

U.

S,

Energy Commission.
Before en¬
tering the Army in World War
II, during which he served as a
Signal Corps Major, he was an
investment analyst with the Penn¬
sylvania Company for

Banking

and

Trusts.
Mr. Lotspiech

executive

with

was

Dean

an

account

Witter

will

be

&

Co., at Los Angeles, before join¬
ing the Atomic Development Se¬

redeemed

price of $101
$0.3778

as

Atomic

ing

after

share plus

share, represent¬

per

equivalent to
On

dividends.

accrued

January 3,

holders

the call

at

per

amount

an

may

Trust

City,
Notice

New

and

on

York
agent.

redemption

instructions as to

redemption procedure
mailed

their
Bankets

redeem

Company,

the

and

1956 share¬

shares at this price at

or

about

will be

December

27,1955 to holders of this

curities

Company on Sept. 1, 1954.
He, too, is a veteran of World
War II, serving as a Field Artil¬
lery Captain.

[

The bank will not
pay interest

/

sales of securities, for the
year ended
Oct. 31, 1955,

Honeywell,

&

the

on

on

Continental

Co., Crowell, Weedon & Co., Hill

of

Seated'—

(L-R):

income, excluding realized

Co., Emanuel, Deet-

Tuesday will find
in¬ Hurry, Inc., Cohu & Co., Cruttenvestors looking over a
couple of den & Co., Hooker & Fay, and
public utility stock offerings, one
Wagenseller & Durst, Inc.




shares

jen & Co., Reynolds & Co., Walston

share

per

31, 1954.

Motor

98.45.
to

$6.93

or

the last

Co.,

Holloway;

George

outstanding, net assets per share,
net income, and
the number of

Noyes & Co., Schwabacher & Co.,
&

shows;

Vice-President,

i

said in his annual report to share¬
holders.
Total net assets, shares

The

California Com¬

Incorporated,

pany,

Company, Lester,
Stocks

\

&

Co.,

j

capital gains distributions and

Personal Progress

1955,

President

are:

Lehman

Barney

Company,

smaller

1 C,

&

written notice,

on

and retain all dividends
of

Robert L. Garner, Vice-

was

-

Mutual Fund, Inc. during the
fiscal year ended Oct. 31,

Dempsey-Tegeler

102.181.

of

*

Co.,

&

Dodge

and

Blyth

R.

rated, Bache & Co., Dominick &
a

specified a 3%% interest rate and
ranged
from
102.213
down
to

from

and

Smith,

Clark,

William

underwriting

Brothers,

tis,

total

a

Co.

the

Sachs

received

its $30 million

San

<7

45

page

-«t

highs

$489,823,

Exchange.

with

Goldman,

Paine,

(• '•

U

&

in

day. Baltimore Gas & Electric Co.

i

from

average

The

Brisk

selling job,
underwriters bid briskly for this
week's corporate offerings, both

\
'■>

E.

can

cents

the New York Stock

Doubtless recognizing the pros¬

pects for taking

it

J.

Douglass,

R. Black, President

Dermott

861,

loans.

investor

Corp.

-■

the

Competition

!•

Dr.

Kingman

on

Photo

"

Oct. 15, 1955, was 1,499,900 shares
of

meantime.

the

in

invested

bank

and

things

be

subject to

group

Exchange

■.

Keaches JMeW Highs elected

pares

then

?,

and

Bank.

and

Eugene

Looking

World

stock then

the

t

Securities

the

American Fund

reduce

It

for

up

temporarily

,!can

and

the

Mutual Funds

Government

bonds

since Con. Ed.

r

the

Black

Continued

ing capital—and

may

loan of

a

Co., Inc.

utility
has $70 million of first refunding,
Tuesday.

1

of

Total net

the sales of de¬

from

will

bentures

-i

,<

by

for the Bank.

President

30-year

>•

public by the investment banking

signed for the underwriters and
the Bank

ventories and work in progress.

Proceeds

for

Commission.
Kingman Douglass, Vice-President of Dillon, Read & Co., Inc.,

valued

y

and El
1,
1955,

groupr

$25,000,000 bond issue to be of¬

a

highs.

..k

y

the

fered

International Bank-

Dillon, Read & Co., Inc.r

investment banking

an

£9,000,000 from the Bank and

Paso, Texas.
On
Perhaps a bit of the reticence Aug.
the consolidated
on
the part of investors to take sales
backlog of
the
company
up this week's offerings might be amounted to $281,700,000 of which
traced to a disposition to wait and
$87,700,000 was reflected in in¬

■

Holloway, Ambassador of the Union of South Africa to;

E.

the United States, signing agreements with the

^

missile field.

-

The Irving Trust Co.,
acting as
the' investor's Agent-, will
collect

of

program

activities

its

expanded

Calif.,

V.

is

minimum in¬

discontinued, by

'at'any time"

t

developing guided missiles.. Its
wholly-owned subsidiary, Radioplane Company, is the principal
supplier of target drones to the
armed
forces
and
has recently

plane

Consol.

i.

be.

Wiljiam; R.

States.

carrying

one

Triple A rating and the second

a
a

■k

issues,

new

Monthly

holders of

vestment; ^requirements

Staats ,& Co. and
appear
to have the revivifying
Blyth & Co., InQ.%ryesterday (Nov.
effect expected on the seasoned
30)
jointly
headed
an
under¬
market.
r""v
writing- group .qffering $10,000,000
Perhaps many have ^overlooked .Northrop- AircfaftpTnc. 4% con¬
the fact that we are heatfitig mto vertible
Subordiiipted -debentures,
the closing month-of the year and
due" Dec..*
,1975^ at-100%5 plus
'that the rank and file of'-off-tne"hc(h*u,ed interest—convertible ipto
street
investment —interests
<<are
common^toek at-$274& per share,
beginning to look over the job of subject to-adjustments.
•<'
getting ready to close out'THeir
Northrop, which was Organized
books.
in California in 1939, is princi¬
It is normal in such circum¬
pally engaged in the production
stances for such interests to just
of the Scorpion F-89 all-weather
coast along, being interested only
interceptor, a high-performance,
in unusual opportunities in this
twin-jet,
heavily-armed
plane
interval.
And
that
seems
just
designed specifically for the de¬
about
to
sum
up
conditions as fense of the continental United

-

14M-'

gives

monthly payments.
available to .every share¬

is

It

...

Northrop Convertible

carrying

they prevail at the moment.

i

t

iv,
^

an¬

dends in three

rejection of bids

,

V-.•.

V'

called the

Plan,

holder meeting the

in

fund,

.600 shares or more the
opportuni¬
ty to receive their quarterly divi¬

its bonds,

heavy

its

service,'

-The

little

a

State

for its much larger recent

.current* refinancing, though at the highest
rates in
several yearsT did not

U if-

v.

issues

short-term

through

It

'mutual

nounced.

$50 million, making:
the second such lot to be put on

The Treasury's decision to stick

.

stock

mon

struction.

^rates in such directions.

•

instead^f quarterly,
John

H. G. Pell, President of the
com¬

con¬

new

month

a

the

125,00(L

for

Investing Corp. has
shareholder

a

making

shares of $100 par preferred stock

h
~

b.

will

meanwhile,
same

introduced

incurred

loans

Virginia Electric

!'

fti. >|
b- y

Wall Street

provide

construction.

finance

,',i(

l'1 i

of

Corp.

Starts New Plan

is offer¬

additional
funds

of

to

liquidation

for
'

stock

common

Thursday, December
1, 1955

;;.

Wall Street

Loan Set

South African $50 Million

Ohio

Southern

&

Electric, by

,

the

through negotiated channels.

Columbus
,

bidding and

competitive

other

H

and Financial Chronicle

The Commercial

(2350)

stock.

John H. Gage,
November

29, 1955

Treasarer

Number 5486

182

Volume

.

.

The Commercial

.

and Financial
Chronicle

(2351)
Aug. 31, 1955, amounted to

Diego G. & E,

San

31/4% Bonds Offered
A new issue

of $18,000,000 first

mortgage bonds of San Diego Gas

and accrued interest to

at 99.619

yield 3.27% to maturity.
The West Coast

Giving effect
3y4%

new

of

to issuance of

bonds

and

the

application

proceeds, capitalization

of

the

company will consist of
000 in long-term

to

utility will

retire $8,000,000

use

credit

volving
also

of bank notes

previously

incurred

under

dova

Nolting,

which

and

struction

to

period is estimated at
approximately
$35,000,000,
the
major portion of which has been
for

additional

County and in

County in California.

A

quarterly
share)

a

A

of

1)4%

the

at

close

of

the

cn

of

this

of

/

The

of
cn

(1 /2r/o)
quarter

on

the

r
-

upon

ending

dividend of

25<

outstanding

31,

share

and

per

the

payable January

3,

1956

to

holders

declared

stockholders
December

P.

of

14,

McCAULEY,

30,

payable,
record

1955.

Secretary.

28,

1955,

record

Colorado
in

New

a

of

of

on

the

declared

share and

per

a
an

per share on the
2,658,230 shares of its Capital Stock now
outstanding, payable December 15th, 1955

to stockholders of record
at
the
business December 9th, 1955.

1955.

dividend

extra
on

mon

close

share

Stock

the

no

of

close

of

OTIS
ELEVATOR

has

$.25

R.

BERGEN,

been

stockholders of record
of business

on

Common Dividend No. 197

per

A dividend of $.90 per

value Com¬

par

of

New

the

declared,

at

no

record

December 12, 1955.

declared,

27, 1956,

uary

share

payable Jan'

stockholders of

to

the close of business

at

on

value Common Stock

par

been

has

to

the close

on

January 3, 1956.
Checks will be mailed.

Fardwell, Treasurer

H. R. Fardwell, Treasurer

York, November 23, 1955.
New

Fuel

and

at

the
in

the

1956

5,

The

Series

the

$50

York, November 23, 1955.

on

of

in

the

B

$50

par

amount

of

and

three-quar.ers cents per
declared, payable on December

was

1955

close

dividend

Series

stock

to

stockholders

business

of

record

December

on

D.

590

:

E. F. Page, Secretary and Treasurer

Madison

9,

at

Greentburg. Pa.

Quarterly Dividend

PREFERRED

The Board of Directors of this Corporation has
this day declared a Quarterly Cash Dividend of

A

$1.00 per share, payable December 10, 1955, to
stockholders of record at the close of business on

clared

A. L.

Cumulative Con¬
vertible

Preferred

payable

December

IBM

INTERNATIONAL BUSINESS

Madison

(§)

the close of business

on

January 4, 1956. Trans¬

WILLIAMS, Executive Vice Pres. &
Treasurer
October 25, 1955

VICE-PRESIDENT ft TREASURER

1955.

COMMON
A

STOCK

regular quarterly dividend of 37J£c per

share has been declared

payable

on

December

the Common

1955

20,

to

stockholders of record at the close of busi¬

December

ness

books will

York

of

business December 9,

CONTROLS

Stock

A. L.

1955

record at the close of

Ave., New York 22

The Board of Directors of this Corporation has
this day declared a stock dividend at the rate of
two and one-half shares for each 100 shares held,
to be issued January 27, 1956, or as soon there¬
after as practicable, to stockholders of record at

20,

stockholders

to

MACHINES CORPORATION

fer books will not be closed.

One Wall Street, New

the $25.00

Stock,

MR.

Company

on

value 5 H percent

par

WILLIAMS, Executive Vice Pres. &
Treasurer
October 25, 1955

1955.

Irving Trust

share has been de¬

per

Machines will be mailed.

the

Secretary.

STOCK

quarterly

regular

diviaend of $0.34375

November 18, 1955. Transfer books will not be
Checks prepared on IBM Accounting

closed.

590

D

November 23, 1955

ROBERTSIIAW- FULTON
CONTROLS COMPANY

The 163rd Consecutive

C. McGREW,

■r't.I

New York 22

Ave.,

9,

val-ie preferred stock

the

on

MACHINES CORPORATION

record

of sixty-two and one-half
share, and also the regular quar¬

sixty-eight
31,

of

Dumber

on

amount

dividend
value
preferred

INTERNATIONAL BUSINESS

®

the amount of

quarterly

par

IBM

28,

common

declared, payable

business

regular
A

was

the

on

stockholders

to

of

Corporation

November

on

corporation in

close

the

share

Iron

York, N. Y.

the 5% preferred, 25$
5% convertible pre¬

stock.

San

Corporation

Common Dividend No. 196

stock¬

to

the

at

quarterly dividend

January

ferred, 27$ Off the 5.40% con¬
vertible preferred, 27^2$ on
the 5V2% convertible preferred
and 37V£$ on the common

open.

Mining

regular dividend of 50tf

^tra dividend of $1.00

meeting of the Board of Directors of

a

The

1 '

•

■

on

record December 6, 1955. The stock trans¬

at

Dividend Notice
At

29,19T5-

.

25$

a

Dividend No. Ill
On November
29th, 1955 the Directors of ?
Newmont

IRON CORPORATION

of record December 1,1955, at
the following rates per share:

dividend cf 10t per share on the Common
Stock have been declared. Dividends are

fer books will remain

November

An

December 9, 1955.

terly

extra

an

common

payable

THE COLORADO FUEL AND

of..^business December 9,

Quarterly dividends on the
preferred ajfdjtommon stocks
have been declared payable

1955,

December

been

to

business

H. R.

cents per

share

pay¬

COMPANY

on

UTILITIES COMPANY!

189

share

COMPANY

the

December 15 to shareholders

for

per

declared,

Checks will be mailed.

1955,

199

Preferred Stock

has

1956,

of

cents

November 28. 1955.

Harry L. Hilyard, Treasurer

Company

per

Stock

3,

close

American

Bank Note

75^

Common

January

twenty-five

Corporation,

December

1955.

of

cents

been

Checks will be mailed.

1955.

American

dividend

43%

has

of

share has today been de¬

per

fifty cents per share

quarterly

close

ELEVATOR

business

($1.50

CALIFORNIA-PACIFIC!

A

the

OTIS

dividend

(25c)

stock

Dividend No.

of

Stock

3,

1956, to stockholders of record
business December 14, 1955.
A
dividend
of
40
cents
per
share
and
an
extra
dividend of
10
cents
per
share on the
at

Corporation

held

Common

dividend

Preferred

January

N. Y.

DIVIDEND No. 84

of

NOTICES

Preferred Dividend No.

able

20,

Newmonf Mining
Corporation

Commercial solvents

on

beeni; declared

Stock

November

DIVIDEND

Secretary.

company

WILLIAM T. SMITH, Treasurer
New York, N. Y., November
29th, 1955.

Company.

-Company,! payable in cash

oper¬

ating revenues for the 12 months

Irving Trust Com¬

quarterly
the

on

J.

New York 3, N. Y.

dividend

has

Tobacco

Diego

Total

DIVIDEND NOTICES
l

helme

payable December 27, 1955,

portion of Orange

a

A

a

1955.

A.

electric

service in San

cents

w.

Rockefeller Plaza, New York

an

Dated:

January 3, 1956, to Stockholders of record
gas

and

205th Preferred Dividend

Preferred

and/or

($.40)
forty

9

the

stock

111 Fifth Avenue

declared regular

Disbursing Agent.
JOHN W. HAMILION,
25, 1955.

.

holders

electric

supplies

„

November

branch

name

808

uas

n«n»^r?i
J53 m*iled by
Dividend

pany,

INC&l-bftATKD

ties.
company

8,

george

par vaIue Capital Stock,
1955 t0 stockholders of

k

clared

generating and distribution facili¬
The

ri

9}
1W

for 1955 and
additions for the

of

and

navtihii
° $12'50
PlMerPecci2b3r 17>
record
December

Drive, Cor¬

the

company

dividend of forty cents a share
additional year-end dividend of

fi¬

year

allocated

Nichol

program

Cost

1956.
two

under

D.rector&

DIVIDEND NOTICES

■

mining

dividend no.

_

rtivirtnrirfnff

DIVIDEND NOTICES

in part the company's con¬

nance

Park,

a

.p.

re¬

a

agreement

be cancelled

will

ham, Ala., has opened
office at 311 Woodbine

proceeds from the bond sale

the

homestake

$5,133,000.

$73,000,Electric Company was publicly
debt; 1,000,000
offered yesterday (Nov. 30) by an shares
of $20 par
preferred stock
underwriting group headed
by in
three series, and
4,000,000 shares
Blyth & Co., Inc. The issue was of
common
stock, $10 par.
awarded to the group at competi¬
tive sale on Nov. 29 on a bid of
Nolting, Nichol Office
99.0601 naming a 3V4%
interest
rate.
On re-offering, the bonds,
PENSACOLA, Fla. — Carl W.
which mature in 1985, were priced Nolting Investments
of Birming¬
&

DIVIDEND NOTICES

$41,201,000 and net income for the
period amounted to

47

Francisco, November 21,1955

not

1955.

9,

The

transfer

be closed.

WALTER

November 23, 1955

H. STEFFLER

Secretary & Treasurer
November 22,1955

The Board of Directors has this

day declared

an

increase in the

quarterly dividend from 30 cents
37]/2 cents and

to

■k

dend of

cities service company

per

Dividend Notice

ary

a

of

Cities

quarterly dividend of sixty cents ($.60)

stock, payable December

19,

stock

dividend

of

two

per

share

per

has declared

on

its Common

cent

COMPANY

Company, payable Janu¬
The Board of Directors of Lud-

close of business

the

at

December 1,

man

on

the close of

business December

RALPH B. PLAGER,

Secretary

of record Dec. 9, 1955,

payable

Consecutive

Jan. 3. 1956.

Quarterly Dividend
Ludman Corporation

has paid
quarterly dividends without
interruption since its first
public offering.

the presently out¬

7, 1955.

226th

10c per

standing shares payable January 23, 1956, to stockholders of record
v«l

Corporation has declared
quarterly dividend of
share to stockholders

the usual

1955.

1955. The board also declared
(2%)

UNITED FRUIT

Florida

1955, to stockhold&Fs"bf record at

the close of business
December 7,
a

Service Company

North Miami,

the capital stock

on

3, 1956, to stockholders of

record
I he Board of
Directors

CORPORATION

divi¬

12^ cents (total 50 cents)

share

of this

an extra

'. V

A dividend

share

per

this

of seventy-five

on

Company has been declared

payable

Jan.

1956,, to

13,

holders of record

MAX HOFFMAN

ERLE G. CHRISTIAN, Secretary

share¬

Dec. 9, 1955.

EMERY N. LEONARD

President

>MWI

cents

the capital stock of

Secretary and Treasurer
-Boston, Mass., November 21, 1955

CONTINENTAL

COMPANY

BAKING

INTERNATIONAL MINERALS
& CHEMICAL

Preferred Dividend No. 68

CORPORATION

General Offices:

The doard of Directors has declared this
day a

quarterly dividend
cf §\ tf/i per share on the
outstanding $5.50 dividend Preferred
Stock, payable January 1, 1956, to stockholders ofTecord at the
ehcc of business December
9, 1955.

||

The Board of Directors has declared this
day a

regular quarterly
dividend, for the fourth quarter of the year 1955, of 50$ per share
on the
outstanding Common Stock, payable December 27, 1955,
to holders of .record of such




stock

at

December 9, 1955:.
t

I

if

transfer books will

be closed.

<

Drive, Chicago 6

RAHWAY, N. J.

QUARTERLY DIVIDENDS
4% Cumulative Preferred

T

WILLIAM FISHER
'

1

treasurer

Quarterlydividends
a

-

Quarterly Dividend of
One Dollar ($1.00) per Share

Stock
Share

$5.00 Par Value Common

Forty Cents (40$) per

E'

Stock
K ww

$1.00

stock,

share
ferred

3, 1956

Vice President and Treasurer

Potash

Phosphate •
Chemicals

•

•

Plant Foods

Industrial Minerals

Amino Products

a

on

stock,

share

a

share

on

$4.00 convertible second
ferred

Common Stock: Jan.

common

87V2$

Declared—Nov. 17, 1955

Preferred Stock: Dec. 30, 1955

the

s^are

on

the $3.50 cumulative preferred

Record Date—Dec. 16,1955

A. R. Cahill

November 28,

THE

MERCK & CO., INC.

Payment Dates

the close* of business

The stock
not

20 North Wacker

55th Consecutive Regular

Common Dividend No. 43

i

stock,
on

and

the

stock

have
on

$1.061/4

been

a

de¬

January 3,

1956 to stockholders of record
at

the

cember

close

of

business

Company

(Incorporated)

—————

Quarterly Dividend
on

the

COMMON

STOCK

32 Mi

PER SHARE

Payable December 28, 1955
Record Date December 9, 1955
Declared November 30,1955

De¬
WEST PENN ELECTRIC SYSTEM

12, 1955.
John H. Gage,

November 29,1955

Electric
————

pre¬

the $4.25 second pre¬

clared, payable

^NestPenn

Treasurer

Moriongahela Power Company
The Potomac Edison
IVest Perm Power

Company
Company

i

and Financial Chronicle

The Commercial

43

(2352)

.

Thursday, December

.

.

the

BUSINESS BUZZ

to create

a

portation

.

'

meet

on...
A

BeWnd-the-Scene Interpretations
from the Nation's

g]

/l I wfA/

Capital

the

single, unified tranf
service designed t
special

needs

the

services,
and
duplicating military

of

.Since..the

X "

there

aii

eliminat.
air

tram

of

MATS

portation services.

y^g^-a m

iggg

Military Air
Transport*
Service, the objective

tion

I

1

creation

has

been created
both in
Services and the
Navv
according to the task force

the Air

new

^

the White

t

sold

debt

limits.

the idea

Ezra

Benson

at

the extra-marital

help

House on

of abandoning

program and going it on
; the straight and narrow fiscal
Eisenhower

Mr.

will

he,

^

that

said

he

favors

Economic Impact Delayed

"pay-as-

a

i

for"

in

$2.5

billion

1

to be seen.

you-go"

the

comes

face

The

roads

-failed

program

tional

presented! J

as

proposed
that"* fne""
some $2.5 billion yearly oL.ad-f
ditional
expenditures
it
en¬
visaged,
be
raised
mainly
through
a
separate
highway
authority which would borrow
on its own credit, issuing bonds
year

which

would * not

in the

included

be

that

bv

sneries

a

that

of

additional

the

tional

of

use

liquidate

special

the

caught

yet

was

for

taxes

when

raise

to

The

cost.

came

naughty and
taxes

the

hit

the

defeated.

was

child

taxes

ticular

par¬

pitched

were

heavily at the trucking industry.
Too

late

effective

for

con¬

sideration, Rep., Tom Steed (D.,
Okla.)
offered
a
compromise
tax scheme. He would raise

Federal

tubes

the

cent

one

gallon,

and

by

tax

gas

per

add two cents a
pound Federal tax on all tires
and

just

camelback

for

rubber

buses, trucks, and
is

It

said

that

"minimum"

tax

trailers,
is

this

j

two

like

The Treas¬

cents

of

additional

an

Federal

gasoline

1945

exceeded

teenth

the

economy,

been

in

While

this

-

still

*

hits

the

vehicular transportation indus¬
try pretty hard, there would be

increase in diesel fuel,

no

by

heavy

motorist

trucks,

would

used

on

every¬

thing except excises. The Demo¬
crats

have

into

lather

a

nancing
parties

of

about

of

sound

interstate

about
some

fi¬

both

and

agreed

re-making

the

40,000

super-high¬

ways.
a

There

a

a

the

adopted

fair chance this

evidence,

The

ses¬

how¬

Administration

fiscal

uniform

conduct.
has

no

that

ever,

has

is

continence,

operating rule of
school

program

not yet

scheme

states

to

been changed from
directly to encourage
set




up

as

an

extra-legal

curious

in

aroused

to

that

see

Congress

announcement

back)

the

two

(later
special

careful look

a

air

transportation

attempt

to

Sen¬

the

cost

aggregate

an

of

for

ways

the

to

task

imagination

waste

force

money, said
which
studied

eral Government.

in

dogs

them

to

overall cost per

an

(task force) committee
questions the flying of pingpong balls from Westover Field
to

Berlin; and the flying of
cement, in a 25,000-pound ship¬
ment, from this country to an
Air

at

the

Force

base

at

Bermuda,"

observed/ for

visualize

to

this

paying

is

"It

someone

being the taxpayer."

force, transported

8,000,000 passengers, "of
which only 3,200,000 could be

remaining
would

passengers

not

official duty trav¬

as

the

traveling

said

4,800,000

have

official orders,"

on

other
of

constantly

the

up

if

Department
would

all

House

not

and

96

the

of

total

as

free

of

State,
much

they
as

flying

the

1%

given

by the military services.

to

include

the

canned

orders

Duplicate

dog
of

a

Air

Department

surplus

commodities

price

lunches

for

children.

surplus

support,

whole

milk made from

may

there

was

created

milk,

or

case

of

free
skim

Carl Marks

pow¬

however, the Department does
charge a nominal one cent per
pound for dry milk powder for
it has

distributed

some

Already
65

Serv¬

Co., mem¬

&

change,
Dec.

1

is

Stock Ex¬

formed

being

of

as

120 Broad¬

with offices at

New York City. Partners are
Murray Klauber, member of the
Exchange, general partner, and
Aimee Klauber, limited partner,
Mr. Klauber was formerly a part¬
way,

in E.

&

M.

Klauber.

Form J. E. McKenzie Co.
*

Joseph

McKenzie

E.

members of the

&

New York

CoJ
Stock

of

Exchange, is being formed as

Wall St.,

with offices at 11

Dec. 1

New

are

Partners

City.

York

general part¬
Solomon E. Shahmoon,

Joseph E. McKenzie,
ner,

and

limited' partner.

Both are mem¬

Exchange Members

To Be

On Dec. 8

the New

York Stock

will consider the fol¬
transfers of membership.

Exchange
lowing

Benjamin

Brown to

Joseph H.

Henry Wreszin o
White; and Robert u.

Jacobson, Jr.;
K.

J.

Kershaw.

MARKETS

TRADING

mil-

Park

Mills
Co.

Engineering

National Co.

foreigners,

foreign school lunches.

Klauber

Morgan

FOREIGN
the

Murray

bers of the New York

W. L. Maxson

der.
In

Information

ice, 19 Rector Street, New York
6, N. Y.—$25.00.

Fashion

school

dry milk

man—Fiscal

to!

Mean

Joachim Silber-

—

Indian Head

away

get

Management

non¬

acquired
for free

American

These

Community and

When under the Truman Ad¬

ministration

school

gives

M.

Services

Agriculture has revealed.
The

Richard

Relations

Howard to Charles

can be inter¬

then

Financial

Stockholder

Robert

task force noted.

"If subsistence

What

as

in the air travel¬

cost

—

435

were

Secretary Dulles

as

Indicators

ness

Changes: A

Significant Busi¬

bers of the Exchange.

words,

members of the Senate

of

be

:£Ke-report.

In

ing

to

'leave passengers'

as

of

esti¬

an

mated

lunch program, the Department
of

Business

Snyder —John Wiley & Sons,
Inc., 440 Fourth Avenue, New
York 16, N. Y. (cloth), $7.95.

ner

Military aircraft in 1954, re¬
ported the Hoover Commission

considered

pricesI

Form Murray Klauber Co.
j
common,

force, is
cross-hauling.

this

(quantity

world's

a

task

members

"The

preted

its

for

transportation within the Fed-i

food,

in

the

considered

considerable

School Lunches

discriminatory

said

elers;

on

1

practically

this

of

Norfolk, Va., area, for the mid¬
west, and in the midwest, for
the Norfolk area.
"Someone,"

have

assumption that ob¬

Uncle Sam is

certain

force

special flights, the
military services themselves

welfare

Helps Foreign

result

net

ex¬

would

people

military it is

task

.

task

three

not

or

did

$40,000

shows

Parliament

for

turkeys to be purchased in the

not

wasted

ators

some

on

the

hard

Whether

S.

consider rash.

servers

under

So there is

deal might sell in the next
sion of Congress.

as

Ottawa,

themselves

roads,

are

need for
miles

worked

restraint

to offer

had available

dog food at

West

the

seem

subject

Few

the

Okinawa

the
Hoover

generally.

coun¬

Congress

assume

programs

the

into

$45
However, that estimate

much

as

of

from

it

that

being

In

if the scheme had

operation in this

requiring
substantial

a

pound probably setting

ounces.

the

ators will lead to

in

U.

question

Europe to return junketing Sen¬

Can¬

the

pack¬

per

of

amination.

flights of large aircraft at $20,000
apiece had been sent to

it

the

and

pay

of

expenditures

would

ire

taken

try, it would have entailed Fed¬
billion.

Might Pass

so

the

by

is about one-fif¬

size

are

if

cost

billion.

$3

ada's economy

of

Commission

al¬

paid

fly

appropriate

an

Transportation

government

cumulative

their

cents

25

Followers

of

family

first

were

Canada,
has

when

at

consum¬

Services Are Wasteful

United States.

lowances

eral

tax.
*

the

50c

request).

on

record."

who

see

to

containing 9%

Charge

first with this scheme

up

Since

the

I The Treasury is
| this is not sufficient, as it is
, estimated
it will take 15 to 16
j years to raise $12.5 billion of
would

in

to

domestic

sells

popular brand of dry milk

a

age

boost¬

reason

to

Service

Progress,
Avenue,

'

the Military Air Transportation

quantity

powder

re¬

areas
or

For this

watched

be

comes

now^cpeptj
said to believe]

ury

drought

the

commander

theater

Coast to Okinawa

ers

age;

as

pow¬

Brazil,

store

the

schedule

revenues.

schemes

Great Plains states

will

Administration will

additional

Ot¬

of

milk

pounds of dry

Chile, Iraq, Israel, and Japan,
dry milk powder is made
whole
milk
purchased
under price supports.
In
the
Washington, D.
C.,
area, a leading chain grocery

whereby

years

Economic

on

Connecticut

(paper),

-

method!"

from

child

each

farmers lack.

tires,
and
two
more
percentage points of excise taxes

here, Figbar, but we don't select
by the 'Eeny, Meeny, Miney,

new

Agriculture:
Policy —Con¬

Northwest, Washington 6, D. C,

customer

a

This

Can¬

ing the income of "low income"

re-

capped
on

for

der for school lunches in

$5 grant for each

six

under

for

making
10

pound

a

scheme

a

such ' involved

trucks

on

buses), four cents

on

;

(not

is

United
Board of

for

Farm

Handbook

six to nine
years; $7 for 10 to 12 years; and
$7 for each child 13 years
through age 15. When a child
reaches age 16 in Canada, the
central government stpps assist¬
ing in its support.
i
Already at least one such
"family allowance" bill is pend¬
ing in Congress.
This scheme
has
a
simple directness that
$6

House

Those

know you're
stock

lion

allow¬

of

tawa makes a

proved to be unpopular and the
bill

is

the Federal Government at

the

proposed

they

bill

"I

Eisen¬

or

"family
it is called.

as

This

out

of

part

Truman

plan

ances,"

bare-faced

sleight-of-hand, adopted the idea
this

the

Administrations

ada's

political hay
fiscal

some

this

of

out

1001

strangely has
the fancy of

either

Democrats, who thought they
could harvest

ference

expensive

hower

bonds.

for

Measuring

welfare ideas that
not

Prosperity

Goals

Mo'

few

the

of

One

vehicles

motor

Full

program

Billions

Cost

the

—

Governors of the Federal Reserve
System, Washington 25,
'"D.'Cr(paper), $2.75. :

likely to be that
writes the new
next year, it
will take two years of planning
and two years of buying rightsof-way before actual road con¬
struction can get going
in

tax

1939-1953

y:

if Congress

roads

in

Funds

States

aTgametTtr~is

even

of

Flow

It is said that the Ad¬
ministration's answer to this
economy.

Family Allowances

receipts resulting from the addi¬
would

great deal of addi¬
on
the booming

a

stress

a

mumbo-jumbo, it would be pre¬
sumed

labor,

of

volume.

legal debt, and provided

further

create

to

largely in a dispute over its
j financing features. The Presi-.
dent's

shortage

a

steel, and cement, a huge addi¬
tional roads program is likely

{

this

with

that

.

program

will

obstacle

additional

an

which, however, may not prove
to be decisive. The obstacle is

expenditures, however, remains
/

program

..

winter/ it

next

up

„

neighborhood
of
annually of road
-

roads

the

When

plan.
Whether .'.the
President actually proposes the
forms of taxes designed to pay

;

appro¬

priation of Federal funds.

roads,program again,
make it known, it is

proposes a

>

and may or may not coincide
with
the "Chronicle's" own views
]

or

the

of

lieu

in

deposits

next

,,

pretation from the nation's Capital

in
effect the appropriation of bank
loans,

ernment-insured

in

abroad!

[This column is intended to re
fleet the "behind the scene" inter"

class of borrowers through gov¬

J roads

-When

Agriculture

"low-income" farmers is
part to
help this poorest

in

the huge

financing features of

i

the continental U. S. and

of
to

approach

The

has

Humphrey

George

duplicating air services both

authorities to violate their legal

WASHINGTON, D. C.--

Co Inc.

SECURITIES SPECIALISTS

50 BROAD STREET

TEL:

&

HANOVER 2-0050

•

NEW YORK 4, N. Y.

TELETYPE NY 1-971

Riverside

Cement

LEANER & CO.
Investment
10 Post Office

Securities

Square,

Boston 9, M^
Teletype

Telephone

oc

M