Full text of Commercial and Financial Chronicle : December 15, 1955, Vol. 182, No. 5490

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INVESTMENT BANKERS ASSOCIATION CONVENTION ISSUE

"1
UNivtii»ii'Y
OF MICHIGAN

EC 16 1955

Commercial

e

UHWSTUriM
iwumr

Reg. U. 8 Pat. Office

Volume 182

Number 5490

New York 7, N.

Y., Thursday, December 15, 1955

Price 40 Cents

a

Copy

editorial

As
Not

since

there

been

outlook.

We See It

the

late 'Twenties,
probably, has
unanimity about the business

such

It

is

The Investment Bankers
Euope's Unmanageable
Managed Money AssociationoiAmeiica Holds

difficult

find

to

an

economist

By MELCHIOR PALYI

prognosticator who is not ready to assure
the public that
extraordinarily good rates of busi¬

activity and genefal welfare

at least the first half of

that

one

makes

even

assured for

are

reservations

,

about

it not been for our hand-out
policies which are
expanding credit, creating inflation, and leading to a
price-wage spiral. Holds managed money policies have
failed, and the responsibility- lies with the moneymanagers.
Concludes the stage has been reached at

the

The current volume of

business, the large backlog of orders, the still not
excessively heavy inventories, the high rate of
employment, the good earnings, the buoyancy in
the stock market, and a number of other factors
cited

are

strength

as

as

for at least

providing

"momentum"

of

which

such

venture

no

There

the

paper

only.

held

+

Two

additional

make such

increase

tween
in

a

in

1938

Western

double rate

figures

dollar

The

195*4:

Europe
in

15

the

be¬

Dr.

Melchior

Palyi

west

the

The

on

near

George

W. Davis

Continued

on

Company, Dallas; and Delmont K. Pfeffer,
National City Bank of New York,

First

New York.
The

Mr.

predicting that a dollar shortage
future appears very unlikely."
By that time,

PICTORIAL SECTION—Pictures of

/

elected

Corporation, New
York; John C. Hagan, Jr., Mason-Hagan, Inc.,
Richmond; William C. Jackson, Jr., First South¬

S.; and average increase in per
capita consumption:
11
to
12%
in Western Europe
against about 45% in the U. S.
"in the

Presidents

Securities

U.

The report went

-

Robert H. Craft, American

cago;

20%

abopt

vs.

Vice

Andrew M. Baird, A. G.
Becker & Co., Incorporated, Chi¬

not

to

President

were:

average

productivity

and

as

ensuing year George W.
Davis, Partner of Davis, Skaggs
& Co., San Francisco, who suc¬
ceeds Walter A. Schmidt, Senior
Partner of Schmidt, Poole, Rob¬
erts
and Parke,
Philadelphia.

as:

did

was

usual

for the

,

good showing:
labor

the

Association elected

30% in agricultural production.

+

at

place, the Hollywood • Beach
Hotel, Hollywood, Florida, from *
Nov. 27 to Dec. 2, inclusive. The

outside

the

to
......

126

page

IBA

on

Forty-fourth Annual Convention of the

Investment Bankers Association of America

12% imports therefrom;
70% in intra European trade;
*
34% in gross national products;
54% in industrial production;

+
+

many

on

to

zone;

phase

Continued

are

The

far decisive

so

.

sides—we had almost said on all sides—
that the thing the economist sometimes calls the
business cycle is as dead as King Tut, that hence¬
forth we may have minor variations of prosperity
but never a full fledged depression as it has been
known
since
modern
industry began. Those

on

exports

world;
+ 114% in
exports

of this
optimism which does give us a good deal of un¬
easiness at times. It is the doctrine now preached
further

•'

.

+

a

Branch, Jr., and Thomas B. McCabe. Texts of these
addresses, also Committee Reports and other Convention
developments, given in this issue.

.

world;
.'
12% in imports from the outside

+

us.

however,

is,

70% in

+

generally is now exceptionally good. So far
as the
ordinary man can see, there is not a great
deal in sight to mar the picture seriously for a
considerable period of time. Beyond that we leave
the future to those who believe that they know
is in store for

George W. Davis; the outgoing President, Walter A.
Schmidt; Hon. Gabriel Hauge; Philip D. Reed; Harlee

European country has to take

every

stop incipient inflation, but

(in physical volume, mind you)

ness

what

Meeting at Hollywood Beach Hotel, Hollywood, Florida,
Nov. 27-Dec. 2, is addressed by the incoming President,

In April of this
year, the Marshall Plan outfit, the
O. E. E. C, published its
sixth annual report dripping
with optimism. Europe's economic
growth from 1938 to
.1954 was presented by such increases

opinion. We can
and we certainly do hope that all the good things
promised for us in the months ahead will even¬
tuate. There can, of course, be no doubt that busi¬
we

to

measures

year to come.

As to all this

r

virtually

measures

to leave little doubt about the future
a

44th Annual Convention

had

1956, and it is not often

second half of next year.

.•

Dr.

other

ness

,

Palyi calls attention to dollar inflation in Europe,
induced, he claims, by our economic and military aid.
Says Europe's super-boom could never have occurred,

or

Davis, the

President

President of the Association,

has been in the securities business

127

page

New

new

Continued

on

the West

on

page

132

incoming Officers and Governors of the Invest¬

Bankers Association of America, also candid shots taken during course of the
Association's recent Convention at Hollywood,
Fla., appear on pages 65 to 88 incl.

ment

DEALERS

State, Municipal

in

,

and

U. S. Government,
State and

Municipal

.

Eastern Stainless Steel

Securities

Jet
telephone:

STATE

AND

W

MUNICIPAL

Expanding to Supply

HAnover 2-3700

NEW

Engine and

Atomic Power

Public Housing Agency

COPIES OF OUR

BONDS

Needs

BOOKLET

"ATOMIC

Bonds and Notes

ENERGY

REVIEW"

chemical

Bulletin

CORN EXCHANGE

BANK

ARE NOW AVAILABLE

J. R. WlLLISTON & CO.
established
MEMBERS

and

bond

Request

on

OTHER

NEW

STOCK

YORK
AND

ibss

STOCK

ON

THE FIRST NATIONAL CITY BANK

EKCHANOE

COMMODITY

OF NEW YORK

EXCHANGES

department

115
30 BROAD ST., N.Y

Broadway, New York 6, N.Y.
Miami

Beach

—

Rye, N.

Y.

Bond Dept.

To

Fi pal

T. L.Watson &Co.

p 11

TO REMEMBER IN THE

ESTABLISHED

||r

1832

New York Stock

|
I

I

American

County and
District Bonds

Dallas




BROAD

STREET

NEW YORK 4, N. Y.

•

PERTH AMBOY

to

BANK

coast

American

Express Co.
COMMON

'

»

Canadian Exchanges At Regular Rates
CANADIAN

Analysis

DEPARTMENT

DIRECT

WIRES TO

MONTREAL AND

Goodbody

&

Pomdiioh Securities
TORONTO

Co.

MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

coast

BONDS & STOCKS

Teletype NY 1-2270

25

from

CANADIAN

Commission Orders Executed On All

Exchange

Stock

offices

Chase Manhattan

Markets Maintained

CANADIAN

Slate, Municipal,

I FIRST S0ilUlW€4t COMPANY 1

1

Exchange

Exchange

BROADWAY, NEW YORK 5

Dealers, Banks and Brokers

SECURITIES

Members
I

i

120

34

Net Active

JL JLJL

THE

HARRIS, UPHAM & C°
Members New York Stock

Teletype: NY 1-708

DEPARTMENT

BOND

REQUEST

115 BROADWAY
NEW YORK

.

Gkporatioti

*

request

IRAHAUPT & CO.
Members Neu) Yorh Stock Exchange
and other Principal Exchanges

40 Exchange

Place, New York 3. N.Y,

1 NORTH LA SALLE ST.

CHICAGO

upon

111 Broadway,

WHitehal! 4-B161

N. Y. 6

Teletype NY 1-2708
Boston Telephone: Enterprise 1820

WOrth 4-6000

Teletype NY 1-702-3

!

The Commercial and Financial Chronicle

.

Thursday^ December 15,1955

..

(2526)

2

,v

The

Nationwide

Security I Like Best
week, a different group of experts
and advisory field from all sections of the country

A continuous forum in which, each

Over-the-Counter

in the investment

participate and give their reasons

Coverage
35

In

brokers

and institutional inves¬

tors, we

have equipped ourselves

to serve

your most

and

ment

On Dec. 21

wire

private

large

system are

Depart¬

Trading

staffed

fully

available to provide

with primary trading mar¬
and prompt executions in
more
than 400 different Over-

to

kets

the

1920

•

pushed
by

C

,

to

the

SAN FRANCISCO

•

<»•••.

Wires

has

RIGHTS %. SCRIP I
I

i{

Since 1917

ti

0

MCDONNELL & fc
Members

I

New York Stock

[

American

\

120

Stock

Exchange

Exchange

BROADWAY, NEW YORK 5

'

since

In

it

weav¬

past, wool

years

wool is not of the proper

chasing

REctor

2-7815

increased and two gen¬

increases have been
made this year.
The four largest
manufacturers in the industry
showed a 15% combined gain in
dollar sales in the nine months
price

eral

.

American Furniture

Bassett Furniture Industries

in trans¬

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

8TRADER,TAYLOR & CO.Jnc!

1

LD 39

Lynchburg, Va.
"

'

TWXLY77

fell to around
130% by the middle of 1952; and
rose again to 160% early in
1955.
At the same time, labor and other
costs were following the general

the

trend of the economy.
Since
carpeting falls somewhat
in the luxury class and its purcnase
can
be readily postponed

ducer

by the consumer, it was not pos¬
sible for the industry to get prices

average;

"compensate for rising costs. Since

soft floor coverting index has held at or near
the 130 level.
The Carpet Insti¬
1952, the

total

STOCKS & BONDS

fWem^iCompon^
17 Wall St., N. Y.

Woven carpet

•

Tel. Hanover 2-4850

force

such

the

as

and

above
some

have occurred. The in¬
dustry has turned to 1 domestic
man-made
fibers
as
an
added
source
of raw material.
In the
changes

period, man-made fiber
consumption in woven carpet and
1949-54

production
doubled
while
U. S. imports and consumption of
carpet wool dropped about 10%
and 29% respectively. In the past
four years, 36% of total woven
yardage produced was of manrug

made fibers

LAMBORN & CO., Inc.

terial?

blends of such ma¬

or

Thus

i

makes

a

competitive

raw

WALL

STREET

NEW YORK

5, N. Y.

Along with the

SUGAR

fibers

came

process
Raw

—

Refined

—

Liquid

Exports—Im ports—Fut ures

daetng

covering that has met with strong

itst If




manufacturing

known as "tufting," nroa
lower cost soft floor

consumer

DIgby 4-2727

of synthetic

use

new

a

libers
their

demand.

the

to

r.ad
v.-:

in

Tufting lends

use

it

is

of

synthetic

estimated

"tufted"

that

production

BOUGHT —SOLD

QUOTED

if

board

new,

carried

of

the

plans

present

are

of

President

The

out.

L A. DARLING

Mohawk

of

M0RELAND & GO.

Mohawk will become President of
the

new

somewhat

phasis

veers
direction
of

will

stockholders

Midwest Stock Exchange

the

in

1051 Penobscot Building

that

will

DETROIT

get

Branch

of the

Financially, there will be some

.

changes favorable to stockholders.
The cash position of the consoli¬

Established

will be better than

dated company

alone.

Smith

of

of the

Each

shares

common
will
have

to

be

try. In the past five years, .it has
reported net losses. It is fourth in
dollar sales in the industry. It has
accumulated

$9.5

in

$32,000,000

•

tax-

carry-forward

of

starting

costs.

The

Mill

up

in

Greenville

company's
Greenville,

Miss., is new and capable of a cost
level as low as the best in the
stockholders

Smith

Alexander

into the merger on a share for
Carpet
stockholders go in on the basis of
4 shares of Masco for each share
of Mohawk.
The deal seems to
have been worked out on a net

go

share basis while Mohawk

approved it
becomes effective Dec. 31, 1955.
Aside from conditions in the in¬

asset

If

basis.

value

this

has

have
the

some

merger

stabilk

economics

-'t on

o

'

ration

sizes

Smith's

' y no

large com

a

five

com¬

.<

in the Indus-

means

mate

tsiry.

»

While it will be 1
pany

1955

go

yea is)

<

sales

with

corpo¬

lexander

toe

$35,000,000

some

v

approxi¬

.

lowest in

('

*

ie,

if

any,

book

Members

|

Stock

York

New

will be substan¬

York

New

million. This gives the new
$54.5
million
senior

Orleans
and

Exchange

Exchange,

Board

Chicago

Exchange

Cotton

Commodity

New

Exchange

Stock

American

other

b

Inc.

Trade

of

Cotton

Exchange

exchanges

company

compared with approxi¬
$40 million (book value)

capital
mately
of

equity having

common

a

based

value,

on

in

conditions

when

time

N. Y. Cotton

Exchange Bldg.

NEW YORK 4, N. Y.

mar¬

the current 1
price of 9 for Alexander Smith
Common, of $27.6 million. At a
ket

Chicago..

Detroit

•

Miami Beach
•

Pittsburgh

•

Coral Gables

•

Hollywood, Fla.

Beverly Hills, Cal.

Geneva, Switzerland

the in¬

Amsterdam, Holland

dustry and prospects for the com- s
pany may

situation

be improving, even this
be advantageous to

can

However,

stockholders.

term,

longer

the

of

ture

industry.

The stock

$12.67

a

1856

H. Hentz & Co.

long- and short-term debt c-f ap¬
proximately $45 million plus the
Smith preferreds outstanding at

a

DE 75

Office—Bay City, Mich.

of Masco.

common

that

26, MICH.

Woodward 2-3855

Smith

get 31%

Exchange

Detroit, Stock

manage¬

Alexander

the

and

Members

em¬

noted

be

stockholders

Mohawk

69%

Mohawk

should

It

ment.

Thus, the

company.

tially leveraged due to combined

1845. It is

Investment Bankers

<fr

Broadway,N.Y.6 COrHandt 7-5680

Chairman

become

Co-chairman

value.

justification. It will create the
largest manufacturer in the in¬
dustry with a sales volume ex¬
ceeding $100 mill
Tt may well

osts.

will

Chairman

become

rugs since
"name" in the indus¬

and

carpets

making

dustry,

i

Brokers

111

Ltd.

1897

Tokyo—70 Branches

Home Office

top managements of the
companies are to be merged
some change in emphasis on

3,063,000

icrii 1

9 9

Established

has velvet

issued

material

substitute, obtained do¬
mestically, should reduce the raw
p ateiT.il
inventory problem and
increase the stability of raw ma-

Yamaichi

has been

Alexander Smith, Inc.

high cost
inventories at going
prices and construction of new
facilities in the South and their

a

cutting

cost

and nature of its prob¬
the industry ripe for

type

and rug production

from

Conditions

"OVER-THE-COUNTER"

1929

fell

as

dropped 35%.

of large blocks of

ESTABLISHED

sales

of

The largest pro¬
has about 6,000 workers.
conditions together with

These

.

Securities Co.,

some

will

carpets.

woven

lem

distribution

and

production

the

are

high cost plants, consolidating
warehousing facilities, disposal of

$100

to

income

net

did as much
About
engaged in

20% of the total volume.

30,000 employees

Mohawk

and

Smith

of

100

thousand

million

$20.6

largest companies

write

or

various individuals. The President

It

percent of
5.36% to 0.39%.

net

34%;

as

Call

physically.

two

losses, and about
$850,000 in preferred dividend ar¬
rears.
Losses, in part, have re¬
sulted from closing and disposal

manufacturers dropped
income dropped from

cipal

and

that in the period
sales of six prin¬

reports

1950-54,

ACCUMULATION or PLACEMENT

to adequately

standpoint of sales volume.
consists of something over

"tufted"

knowledge

potential.

The

mergers.

tute

Exceptional facilities for the

fit

producers. In 1953, sales approxi¬
mated $396 million and none of

early

appeal

facilities,

combining opportu¬
nities. The two companies seem to
offer

the

from

industry

small

a

no

with

of Japanese

facilities in New York which may

covering industry

The soft floor

is

consumer

a

Carolina

and. the

risk.
This was
especially so in the 1950-54 pe¬
riod.
Following the Korean in¬

from the

offices

visions-

with

investors

investors

for the manufacture of
growing product. Smith:
velvet carpet plant in South

characterized by
widening profit margins as sales
rise above the break even point.

price

to

Miss,

fast

has

is

industry

Smith has

reverse.

production

this

Greenville,

Mohawk's position is

while

with

upward

■'

unusual

have

may

of Axminster carpets
new

Sept. 30, while net income
rose from a deficit of $550,000 in
1954 to net of $2 *4 million.- The

porting the industry's principal
raw
material, carpet companies
were
forced to carry large in¬
ventories and this involved a con¬

1947-49

Trading Interest In

the

ended

dis¬

its

ities,

prices

where

point

the

be

could

texture

long

of

tances and time involved

siderable

'

*

with

demand

and

cident, the average cost of carpet
wool rose sharply to 300% of the

TEL.

plementary. Smith is strong in the

tufted

.

power

reached

weaving carpet, it has been
necessary for the industry to im¬
port its wool. This situation cre¬
ated
an
"inventory in transit"
Because

,

branch

our

industry

in

increase

fibers via the

to

SECURITIES

com¬

output was
estimated at 10%. Consumer pur¬

Bryant
.

for

problem.

be

NY 1-1557

.

JAPANESE

these

of

to

seem

wires

while Mo¬
hawk has the newest plant in the

industry's principal
material.
Since
domestic

raw

facilities

companies

1955, woven carpet production
was
7% ahead of 1954, and the

the

been

i

E.

classification

ing process.

Specialists in

Carl

af¬

textile

uses

disposable income and new

of

with

textile

the

two

Exchange

Mobile, Ala.
Direct

variety.

Production

Exchange

York 6, N. Y.

HAnover 2-0700

mill and limited in "Wilton" facil¬

five

is

It

try.

the. non-cash

closely, is producing some good
results, arid there are signs that
a turn has come.
In the first half

indus¬

flicted

soft,

in

interest

consumer

American

New Orleans, La. - Birmingham, Ala.

,

family formation, both of which
carpet sales to consumers follow

than the

carpet

operations. Mohawk
Carpet's 19-35 sales will approach
from

production

in

past

years

,

Princival C.itip»

profit

Stock
Stock

York

New

19 Rector St., New

(24%
above
1954)
indus¬ $71,000,000
with net income equal to between
try, through the Carpet Institute,
$3.50 and $4 00 a share. A sub¬
is spending several million dol¬
stantial part of Alexander Smith's
lars
in
public
relations, retail
$414 million loss in the 9 months
sales promotion and cooperative
ended Sept. 30 appears to be of
advertising
to
stimulate dealer

sumer

its

economics
CHICAGO

•

PHILADELPHIA
Private

been

around

Teletype NY 1-40

■

EOSTON

Steiner, Rouse & Co.
Members

and to build sales.
This action along with rising con¬

industry

more

Bought—Sold—Quoted

Charles

Members

floor coverings

No

—

Co., Beverly Hills,
(Page 19).

Calif.

material costs, the

raw

and

has

York 5

120 Broadway, New
«

to

Indus¬

tries, Inc.

Stock Exchange

WOrth 4-2300

of

latter

Masco

Associate Member

American

name

the

Co.

Senior Partner, Dan¬

Reeves &

iel

problems

the

solving

of

rection
of

Smith, Inc.,
and change

Corporation
,

nylon and cotton and there
is every indication that additional
fibers will be used in the future.
In addition to efforts in the di¬

Alexander

New York Hanseatic
Established

Mohawk Carpet Mills,
into

merge

Inc.,

the-Counter securities.

T. Jawetz,

using

now

Louisiana Securities

E.

rayon,

ing will be held by Alexander
Smith, Inc., to act on the proposal

you

industry is

The

Petroleum

Phillips

between 1951 and

stockholders meet¬

a

million to 40

one

1954.

Carl

—

(Page 2).

Boston, Mass.

million pounds

Mass.

Inc.

Bryant, of Kayden, Stone & Co.,

increased from

Masco Industries, Inc.

Alabama &

Selections

Industries,

Masco

are not intended to be, nor
offer to sell the securities discussed.)

BRYANT

E.

Ilavdcn, Stone & Co., Boston,

specific needs.

complete facilities of our

The

they to be regarded, as an

CARL

particular security*

a

Participants and

Their

this forum

(The articles contained in
ire

of serving dealers,

years

for favoring

Week's

This
Forum

the

over

considering the na¬
industry,

the debt

is

probably heavy enough to dictate «
retention
of a large
portion of
future
■

profits.
will

Smith

Alexander

bring

in tax-carry-forward
losses, which will be sufficient, on
the average, to off-set a
an¬

$32,000,000

Savirg^

pre-tax margin on a sales
volume of
$110,000,000 annually
nual

through

1960. If these carry-for¬
utilized, total

ward losses are fully
tax

savings

of

over

common

stock.

companies

the

the

next

Furthermore,

are

will

the

debt

Quotation Services

negotiating

alteration of the dividend restric¬
tions

Over-the-Counter

five

would equal $4-$5 a share

years

,

for 42 Years

which
permit dividend payments on
in

agreements

preferred and common stocks

of the

new

company^

earnings. It

out of future

National Quotation Bureau
Incorporated

should be noted that

Established 19 IS

Mohawk
have

common

been

stockholders

receiving dividends at

46 Front Street
CHICAGO

Continued

on

page

19

NewYork4,N.Y.
SAN

FRANCISCO

Volume 182

Number 5490

.

.

The Commercial and Financial Chronicle

.

(2527)

Where Do We Stand

Freedom?

on

INDEX

By COLA G. PARKER*

President-elect, National

Association

Articles and News

of

Page
Europe's Unmanageable
Managed Money—Melchior
Palyi__Cover
Where Do We Stand on
Freedom?—Cola G. Parker
3

Manufacturers

Director, Kimberly-Clark Corporation

Mr. Parker ciles the dangers of the
great growth of bigness of
Government, and its proliferation in the states and localities.
Lists various encroachments on our

freedom,
taxation, unionism, agricultural regimentation,
social security. Maintains we are
constantly
socialistic base, and thus are well on our
way

»•

State

nist
There
had

was

the

once

preacher who
laudable habit of
conversation with

very

ending

every

invitation

an

to

this

a

to

come

and

church

in

he

It

And

can

served

"a

—How

dizzy

blonde.

we

I

do

to

rose

waitress put

her hands

her

hips, stopped
gum long enough

snapping
to

reply

your

from

the

approach

title,

pitch as
the

you

and

shall close the books for

Our

1955.

first

time

in

our

national income of well
and

than

more

worst

since

Little

Walt Dis¬

Industrial
Railroad

in¬

boon

of

back

go

deep

and

in

famous

Nuclear

32

State

Founding Fathers did
liberty. But, while not
inventing it, they did find a way
our

speak

of

closely limited

to

HYCON

34

35

37

J. F. Reilly & Co., Inc.

46

48

Corpus Christi Refining Co.

50

The Diners*

Dumont

Broadcasting
Gulf
CoastLeaseholds,Inc.*

52

,

53

Companies Committee

Pacific Uranium MinesCo.*

54

Committee

55

Revlon, Inc.

#

Convention—pages 65

*CircuIar

protect this freedom of the in¬

you

about

have

we

to

lost,

the

landmarks
the

of

ground

Constitutional

have

we

flame

the
let

freedom

crumble,
that

size

once

so

untended candle in

of

ijs hardly

who

does

not

recall

usually

as

out

if it stood alone.

of

We

overlook this

more
was

expressing his

the

American

Constitu¬

tion might not live.
"Our

Constitution

is

operation," he wrote to
France.

promise

"Everything
that

in
a

.

and

.

NAM's

dustry,

Investment

Bankers

to

appears

but

in

address

by Mr. Parker before the
60th
Congress of American In¬
New York City, Dec. 8, 1955.

have specialized in

the

of

Freedom's

.

secured

the

.

As Daniel
"the
for

ple, and
ple."

As

it

to

the

original concept

ernment had two prime

To

from

protect

all

our

was

lvxuiual
News

Investment

Nashville




•

Chicago

Schenectady

.

•

•

HA 2-0270

40 Exchange PI., N. Y.
Teletype MY 1-1825 & 1-4844

Direct Wires

Market

124

.

.

140

Security
State

of

22

Washington

I

_.

and

141
151

143

,

;

;

Federal Uranium of

148

;

120

Nevada

16

Best

and

Vitro Corp.

24
116

:

You—By Wallace Streete

Like

Reeves-Ely Laboratories

5
;

I

Registration

Trade

148
150

___i

and

.

Lithium Corp. of
America

15

:

Bankers

Prospective Security Offerings.
Security Salesman's Corner
The

20

Bargeron

.

in

2

Industry

4

You

Pan

152

Twice

Weekly

1

COMMERCIAL and

FINANCIAL

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

CHRONICLE

Park

DANA

Place, New York

REctor
HERBERT D.
WILLIAM

2-9570

to

7,

N.

& Publisher

Thursday, December 15, 1955

records,
state

corporation

and

city

news,

—

market

news,

bank

quotation

clearings,

Of flees:

Chicago 3,

HI.

135

Pan-American
Dominion
of
Other

Salle

St.,
(Telephone STate 2-0613);

Sulphur

second-class matter Febru¬
the post office at New
Act of March 8, 1879.

Rates

$62.00

per

of

account

of

the

for

for¬

eign subscriptions and advertisements must
be

made

in

New

York

funds.

/

BROADWAY, NEW YORK 6

Teletype NY

fluctuations in

remittances

39

WHitehall 3-3960

year.

Publications

ovohanee

INCORPORATED

of

Bank and Quotation
Record — Monthly,
$37.00 per year. (Foreign
postage extra.)
rate

m V. FRANKEL St CO.

S.

Union, $55.00 per year; in
Canada.
$58.00
per
year.

Countries,

Note—On
La

Gulf

Eng¬

at

Other

etc.).
South

C.

Subscriptions in United States, U.
Possessions, Territories and Members

the

other

as

1942,

Subscription

SEIBERT, Presldenl

issue

25,

Y.

Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
statistical

ary

York, N. Y., under the

9576

SEIBERT, Editor
DANA

Reentered

COMPANY, Publishers

E.

American Sulphur

Copyright 1955 by William B. Dana
Company

Reg. U. S. Patent Office
B.

Los Angeles

9

Securities
Securities
Now

to

*

8

1

and

Chicago

8

Recommendations

Activity

Banks

*

141

'1

Utility

Railroad

Theh

Glens Falls

Worcester

;

Notes

Securities

plete
•

;

Field

„

About

Public

ST., NEW YORK 4, N. Y.

Boston

Investment

Observations—A. Wilfred May.
Our Reporter on Governments
Our Reporter's
Report
;

gov¬

individuals

TELETYPE N. Y. 1-5

the

Funds

NSTA

peo¬

PREFERRED STOCKS

•

Singer, Bean
Mackie, inc.

&

Cover

I

Bookshelf
in

mors

securities

Philadelphia

__.

Stocks

"Russian Aid to Backward Countries"
From Washington Ahead of the
News—Carlisle
Indications of Current Business

The

TELEPHONE HAnover 24300

132
102

Einzig:

functions:

page

(Editorial)

Man's

Deaier-droker

The
on

It

Insurance

Coming Events

foreign attack.

Continued

See

and

Business

of

government, made
by the peo¬

answerable

We

Bank

Government's Original Functions
In its

43

Associations._,130

the people, made

Members-New York Stock
Exchange

•

Cover

Opposing Bricker

Regular Features

blessings of

Webster said,

people's

Request.

44th

Rathbone Views Atomic Power 2S
Energy Partner
FHLB Eases Credit Restraints on
Savings-Loan

.

by the establishment
Constitution.

our

Request.

on

tFe maintain
trading markets in
250 over-the-counter

God-given

.

Spencer Trask & Co.
Albany

Holds

M. J.

divine

25

BROAD

America

Chairman W. Carroll Mead
Reports Activities of IBA
Education Committee

peo¬

WILLIAM

25

of

Board of Governors
Adopt Resolution
Bill and Similar Legislation

Published

For many years we

Association

IBA

level

to

110

Annual Convention

powers,

any

Convention

on

**Prospecius

30

than

empha¬

liberty

(1)
♦An

Winners of Golf Tournaments at
the

actual

friend in

it will last;

to

.

important fact

that Franklin

fear that

I

reserved

.

quoted

List of Those in Attendance at
the Convention

designed

non-delegated

government

the

"unalienable rights"
"life, lib¬
erty and the pursuit of happiness"
.

is

powers

denied

by

government

origin, they set down those "selfevident truths"
the

Ben

"nothing

is certain except death and taxes."
But' mostly
we forget
that this

context,

central

respective states and to the
ple.
'

a person in this

Franklin's statement that

phrase

—

those

Mindful

There

continuance

to 88 incl.

^

Franklin's Warning

room

all

except

draft.

a

a

dividual, with all—and

clear, now flickering and
threatening to go out as does an
was

its

of

Club, Inc.**

51

Committee

sjc

4

1-4643

44
»

%

Teletype: NY

42

Committee

Candid Pictures Taken at

Broadway, New York

DIgby 4-4970

Committee

Legislation

42

40

Oil and Natural Gas
Securities Committee

creation

REFINING

33

Securities Committee

Energy

-

CORPUS CHRISTI

31

Committee

Securities

Public Utilities

1688.

assure

LEASEHOLDS

SULPHUR

38

Investment

to

GULF COAST

26

appear on pages

Canadian Committee

of

I don't intend to talk to you about
our
material gains. I'm going to

YORK

4-6551

-

Committee..

Securities

Aviation

philosophy.

Bill

Securities

Federal Taxation

Chris¬

English

y

Governmental Securities Committee
Municipal Securities Committee

respect for
The roots of

man.

WHitehall

21

Texts of IBA Committee
Reports

Pigs."

priceless

•

;

de¬

not invent

point—so why be critical? Today

Telephone:

21

IBA—George W. Davis__
Essential Concepts of the
Eisenhower Regime
—Gabriel Hauge
r________~___
A Busy Year
for the IBA—Walter A.
Schmidt
A Basis for
Confidence—Philip D. Reed
There's No Limit on
Tomorrow—Thomas B. McCabe
The Electric Utilities:
Opportunity and Challenge
—Harllee Branch, Jr

in

not

of

No,

good from that stand¬

are

the

Hollywood, Fla.,

Rights after the peaceful revolu¬

million

gainfully employed.
Times

loese

the

the

WALL STREET, NEW

Credit

Studenski_"III"I"I"_II

tion

$300

over

wolf

a

religion

and

*

Tasks Confronting the

They
reach
even
beyond
the
Magna
Carta,
the
Fetition
of
Right, the Grand Remonstrance,

history,

65

turned

was

dignity of

tian

a
good
output of close to

an

Association of America at
indicated:

About

zoo.

Founding Fathers did

freedom

18

99

FULL TEXTS of
addresses and Committee
Reports de¬
livered at the Annual
Convention of the Investment Bankers

dividual freedom and
the

$400 billion in goods and services

billion

It

"Three

create

Materially, it has been
year—with
the

woods.

for

see

correct

made 179 years ago.

was

first, where do we stand
materially? In a few more days

for

when

bacle

But

we

that

ney's
new

Obsolete Securities Dept.
17

MEXICAN GULF

northern

the

sure

14

it!

get a square meal
except to sit around the back
doors of resorts and howl for food.
Even the cats chased them into

different."
no

you

tion of how to

on

13

Armstrongs

Consumer Demand Boosts
Auto Industry—W. J. Simons
28
Economic Trends in
Canada—Hon. Walter E. Harris..36

habitat, on an island
Michigan, they were
completely miserable, with no no¬
in

Order—Paul

your

yellow obsoletes!

24

Tax Reduction Is in

that

their natural

"say

brother, I don't know what
is, but your approach
I have

—Harold Wolozin

don't know how
many of you
the news story about the

soft

her

pitch
is

a

meal," he said.
evening, and I hope that
you. in Sunday School."

see

The

was

good

very

Sales

want

unless filled with

,

:_____

Instalment

how,
with
complete
security,
housing, food, free medical serv¬
ice, and so forth, they became so

leave.

"That

I'll

Schlesinger

don't

12

remember

wolves in the Detroit

he

We

yellow basket—

Texts of IB A Convention
Addresses

pleasant
as

Hardin

Our Rising
City and Town
Taxes—Roger W. Babson
Innovations in Granting of

recall

smile

C. G. Parker

to

keep

can

we

He gave her

"Good

•

asked, "what-

republic, sir, if

often

A TISKET A TASKET

10

—William McC.
Martin, Jr
Organized Labor's Economic
Creed—George Meany
Factors in Planning Your
Investment Program for 1956
—Edwin J.

that "if?".

what

a

'T'*

answer

republic, if

some¬

Stick"—Hon. Sinclair Weeks

Monetary Pclicy and the Real Estate
Markets

ex¬

keep it."

A

,

his

AND COMPANY

6

____

to the Commu¬

was

4

_

he walked out of Con-,

gave

question:

restau¬

a

—Lowell S.

Franklin, past 80, yet with
looking to the

future,

Samuel_______

Cobleigh

The Outlook for
Bank and Insurance
Shares—Robert S. Burns
Legal Aspects of the SEC's
Work—J. Sinclair

his great mind still

where

was

by

TVA-ism, and
broadening the

Hall, he

C.

U.

llCHlfflSTfltf

-

Agriculture: Beset With
Problems of Plenty

nothing is certain

as

vention

meal

a

a

rant,

the

have you given us?"

evening

ate

world

Even

happened that
one

Amerada the
Beautiful—Ira
"The Carrot Instead
of

stemming from

cept death and taxes."

attend

services.

he

Investing in Energy—Donald

blue-printed by Karl Marx.

as

3

Direct

PHILADELPHIA

1-4040

&

4041

Wires to

DENVER

SALT LAKE CITY

The Commercial and Financial Chronicle
4

ing

But all of

predicts rate of growth in energy field will con¬
industry as a whole. Expects 10 to 20 years

expansion" of

energy

nuclear
nuclear

and transmission is prime place for
thoughtful investor's funds; and diversified investment in oil,
natural gas, electric utilities, and other nuclear power enter¬
prises represents best investment in America's future as a great
nation. Cites specific issues in various categories.
field of energy generation

I will try not to
ous.

I

will

would

avoid

avoid

will

steer

tific

be too ponder¬

statistics

the

as

you

I
scien¬

and

plague,

phases of

from

away

the

sion of energy.

of energy

under the

backward

lions of years.

an

It

historical

if

glance,

dormant
earth's surface for mil¬

was

made

you

ments

please, toward
energy
down
through the

Donald

been

had

that

matter

few minutes
a

created,

time went on, a

fuels, of course, was coal—a fuel
that
was
the result of mineral

perhaps
I
spend

should

glance,

turn

in

power

great demand
for what the scientists call fossil
fuel. And the earliest of the fossil

investments,

in

world.

Steam
as

into the prob¬
lem

West¬

Samuel

industry here
the amaz¬

ing
spread of railroading, the
Someone, I think it was
accelerating of ships at sea and
H.
G.
Wells, said that human our
great manufacturing era. All
history is in essence a history of of
these
in
the
19th
century
ideas, and I sometimes think that stemmed from man's discovery of
the greatest of all pragmatic ideas
steam and his use of the fossil
has been man's creative ability in
fuel, coal, to create this steam.
developing energy resources.
In our century a new fossil fuel
Man
first .created
energy,
I has come along—petroleum. Dis¬
would
think, by harnessing the covered in the latter part of the
ages.

winds. He sailed the seas in olden

days,

and

centuries

built

ago

19th

-•

century,

universal

-

has

it

in

use

our

come
own

into

time.

crude windm'Rs to pump water.
I

would

forward

in

think

his

the

quest

next

for

Petroleum Era

The

step

It is trite,

stand

use

now

in the

of course, to remind

converted

be

power.

Particularly

is

will

tankers

that

nuclear

to

it

argued

nuclear-

be

because of the
added
storage room that would
result, and second, because of a
speeding-up of the so-called turn¬
propelled,

first,

around time

.

water.

try-at-large in the period ended
on Wednesday of last week.
The
most
noticeable gains were re¬
corded in the automotive and con¬

the air,

companies

many

classified about this.
(Pratt & Whit¬
ney) and General Electric fill the
Sunday
papers
with advertise¬
nothing

United

Aircraft

their attempts to recruit

ments in

engineers
to
work
on
these
projects. Only the other day we
read that an airplane flew with
inactive reactor in the nose of

an

the

In

plane,

there

an

many exiting
nuclear
developments. Detroit Edi¬
working on an improved

are

power

is

utilization.

nuclear

another

is

There

electric

several

for

one

read, I am sure, of'the ex¬
periments of the telephone com¬

e

Fuel

CO

clined

ington and Oregon and rose mod¬

injectors will replace carbu¬
engines with¬

two years.

Air

suspension

£

springs)
within the

will
same

we

recommend

for

speculation:

cc
o

>-

£

800, the United States Department
reported.

of Labor

The

Ul
UJ

AIR-SPRINGS, INC.
Common Stock

food

and

textile

apparel,

proc¬

essing industries and to claims
delayed
from the week before
when
offices
were
closed
on

number of

versation;
solar

and

the subject of
remind you that

on

I

energy,

only

week

a

or

two ago that the

is

mer

with

railroads

are

putting

success

the pressure for

steel

more
car

foregone conclusion.

a

The

on

push their freight
They failed to get
from Washington, but

program.

priorities

their efforts have had the desired

effect

steel

some

on

producers,

concludes "The Iron Age."

Business "inventories at the end
of October topped the

level

by

month

were

the

year,

year-earlier

and sales for the
14% higher than last

5%

United

Depart¬

States

ment of Commerce reported.

The Department

said total man¬
inventories
$81,300,000,000 at the
October. This was $3,800,-

ufacturing

trade

amounted to
end

of

000,000 higher than a year earlier
and $1,600,000,000 above Septem¬
ber.

Sales

October, the de¬
amounted to $54,This was $6,500,000,-

during

partment said,

300,000,000.

000 above the like month last year

but

above Sep¬

only $100,000,000

tember.
The

little

•

•

as

tive

the

garden-spot

in

a

more

inventories

N«v.

stood

rose

one

invests

dress

in

myself

tober to

is

the
of

one

meet

will

Prices
weeks

the

loom

larger

"The

ahead,

Iron

metalworking

national

ge"

the

beneath

smoulders

question

A

producing enough to
the
steel
price

demand,

surface.
in

big problem in steel

weekly, states this week.
If
anything, the steel supply
outlook is worse, with producers
straining to maintain high produc¬

However, cold weath¬

tion levels.

maintenance problems and the
holidays are likely to force
a
break in the fast pace being set

er,

by the mills, it continues.
The iusual hullabaloo about steel

followed

recent

ad¬

prices

has

vances

in base and extra charges.

Chances

that

are

March

by

1,

practically
all
major
product
prices will be changed either in
terms of extras or base.
But the
are still to
Meanwhile, producers have

come.

cocked

Washington.

one

eye

The

possibility of being called on

on

explain price changes may give
a

bad

case

of cold feet.

probe hardly seems like¬

ly in view of the industry's need
for additional expansion capital,
declares
It
even

is

this
still

trade

much

the

than

possibility that

an

higher

increase

this

of

40%

flected

commented.

higher

$500,000,000

wholesalers'
about

were

to

and I ad¬
that

are

about $50,000,-

up
11

'

'

the

sales,

The

month.

seasonally

many

■ t o

therefore,
the

$52,500,000,000

in

volume

us

of manu¬

the durable goods sector

facturing

$400,000,000

sales,
to

a

which
dipped
$13,300,000,000

volume for October.

week
tion

States

expected

pace

industry

industry

automotive

the

In

United

makers

car

to

set

a

years

surpassed only once in
history, "Ward's Auto¬
stated on Friday

last,

as

181,479 automobiles were

scheduled to wheel from assembly

points throughout the nation.
30

Only the week of last April 25displayed a greater productive

Continued

on

page

announce

establishment of

a

W

i

Phases

talk about coal. For

now,

investors

PALL L. SIPP,

have

it, nothing to attract capital. But
this is changing.
The insatiable
demand for power has convinced
many people that the demand for

JR.

STERN, LAUER & CO.
Members New York Stock
120

Broadway

Exchange

New York 5, N. Y.

coal will go on for countless dec¬

£

Information available

on

request

ades

cheap

and

that

power

it

is

a

source

for certain

Continued

on

of

sections

page

134

December 15, 1955

last

produc¬

motive Reports"

ques¬

neglected coal mining, have re¬
garded it as a dying industry.
There was nothing dynamic about

Octo¬

Most of this decline came in

ber.

under therdirection of
Investing

ad¬

for sales volume,
dipped $600,000,000
September level to a

index

justed
from

the

on

Municipal Bond Department
n

t

other
hand, rose a little less than the
Department considers normal for
October

steel prices

pleased to

by

Retailers' in¬

$150,000,000.

ventories

and

increased

stocks

000, it added.

It

values

book

manufacturers'

were

re¬

replacement costs,

Department

said

authority.
more

a

000,000 at the end of the month.
About

While

We

energy,
now

a

nor¬

Thus, its
varia¬
$700,000,000 during Oc¬
book value of $80,700,-

produc¬

is prelim¬
inary to the question as to how

1

by the Department.

not-too-

is available.
All of this, of course,

was

than is considered

tions

931,700 in the week ended
26.
A year ago the figure
at 1,515,700.

mal

when solar energy

future

-

September-October rise in
business

total

■

-

sun-drenched desert in the Negev
would blossom forth

some

to

index adjusted for seasonal

to

a

an

after wage negotiations next sum¬

500

mills

ment

will rise moderately before March
1.
That they will go up Tagain

jobless workers on the
compensation rolls climbed 105,-

Such

The

H

of
attributed

Bureau

Security

the rise to seasonal layoffs in the

some

recently to imple¬
historic telephone con¬

First, let

Common Stock




the

power

SAATY FUEL
INJECTOR CORP.

s

department's

Employment

tion.

Ul

com¬

pensation climbed 32,600 to 238,-

to

distant

a*

of

the Prime Minister of Israel stated

(replacing steel
be commonplace
period.

Dec. 3, new

unemployment

for

ficient

predict:

X

the week ended

In

claims

country, bringing in the power of
the sun to storage batteries, suf¬

retors in automotive

in

sections

several

in

pany

we

processing

food

the

apparel industries. Claims de¬
most noticeably in Wash¬

and

splar, energyYou important adjustments

the future:

have

in

in

seasonal labor

experiment doubt¬
less to shed light on problems of Thanksgiving. New claims in the
like week of 1954 totaled 301,700.
weight and spacing.
.
The bureau also reported the
In
the
electric
utility
field,

in

COMPANY

some

were

cutbacks

the

d'AVIGDOR

insurance was re¬
the past week. However,

there

are

to bring into being a
nuclear-powered airplane. There
is

Production

Business Failures

employment
ported

the discovery and use

ing

noted-in in¬

was

production for the coun-

erately in Indiana.

of fall¬ you that we are in the petroleum utilities in and around Ohio, and
early days of era. Our roads and streets are up the Hudson River a few miles
our
crowded
with
the New York's Consolidated Edison
country falling water, run¬ unbearably
ning water, turned
the water- automobile powered by gasoline. is going to construct a giant
energy
plant to create
wheels • that produced energy in Our ships cross the seas, obtaining nuclear
our
meagre
industrial plants of their power from Diesel oil. Our power for New York and environs.
Abroad, Great Britain is mov¬
pre-Revolutionary days. And from railroads, too, are largely Dieselthere it was, of course, but a step ized, and fuel oil is a giant source ing rapidly to create six widely
to the use of falling water itself, of power for industrial plants in dispersed nuclear plants, and, of
course, in countries where there is
hydro-power,
in
our '.'lexicon, many sections of the country.
which,
of course, is the great
In
the
last 20
years
another a shortage of fuel there is a great
desire for nuclear energy.
India
source
of energy in Switzerland
petroleum product has
been
and parts of Latin America come
and in the Western end of our
brought into use as a source of
to mind readily as parts of the
state at Niagara Falls.
energy—natural gas. Natural gas
globe where nuclear power can
Some 200 hundred
years ago, is a clean fuel, relatively inexpen¬
fill a long-felt want and do much
more or less,
we learned how to
sive, and is supplying energy more
to bring about a full life.
Even
use
steam
to
create energy,
to and more for the great industries
Switzerland,
with
its
famous
bring about power. Man learned that have located along the Gulf
hydro-power resources, has been
that
by
heating water to the Coast and the Middle South.
a
recent purchaser of a nuclear
boiling point the resulting vapor,
So here we stand, a bit beyond
reactor.
the mid-twentieth century, with
I proceed now to say a word or
*A
talk
by
Mr. Samuel before the
the use of wind largely discarded
Advertising Post, American Legion, New
two about still another source of
as a source of power and depend¬
York
City, Dec. 12, 1955.
energy that may not be too far
was

A marked rise

dustrial

of
has

should

son

energy

the

peaceful

for

be

we

Industry

Price Index

Auto

nuclear power? struction industries. Over-all out¬
Our
Navy
commissioned a put exceeded the comparable 1954
third nuclear-powered submarine, level
by a considerable margin.
and Congress is demanding that
our
Merchant Marine, our ships
On the employment front a de¬
of
war,
our
aircraft
carriers, crease of 24,000 in claims for un¬

planned

In

and in Western Europe,

learned
but in the

that working

possible the great develop¬
of the 19th
century: the

great iron and steel

will

fission,
Where do

v

<

this fossil fuel, coal,

Food

and

man

purposes.

it was this development
brought about the industrial
revolution in England, which in

ern

Before I get

of

know,

and

purposes

decades and centuries to come,

that

spread throughout the

war

splitting of the atom, the process

pressurized, became a de¬
pendable source of energy. As you

turn

transmis¬

For

Trade

Retail

Commodity Price Index

insatiable

and

creates

how to split the atom,

when

the generation

Carloadings

and

resources

Production

Electric Output

State of Trade

atomic power,
power,
and
it
is
the
age that we are entering.

curiosity,

Concludes whole

industries.

scientific

his

Steel

The

these, when one looks

inventiveness

tinue to outstrip

of "giant

/P

ahead, may be insufficient to sup¬
ply our energy needs. So man,

Y. S. E.

with

Mr. Samuel

falling water (hydro) and
fuels, coal, oil and natural

gas.

By DONALD C. SAMUEL*
Partner, Ralph E. Samuel & Co., Members, N.

on

fossil

Investing in Energy

a

Thursday, December 15^1955

..

.

(2528)

Telephone: IIAnover 2-4450

130

Volume 182

Number 5490

.

.

.

The Commercial and Financial Chronicle

5

(2529)
experienced

management

men

to

putting

Observations...

agement

quality

pression

coming
a

or

"appraisal"

ever

re.suIt

is

—

be-

significant

more

as

of

taken
The

the

intensification
Chip-

contrast

portion

relation

agement

profit margin; as well as
noting the growth of sales.

validity is tremendously
by comparing such re¬

continues
Center

shown

efforts.

in the

same

audits

supplant¬

ing of quanti¬

sense some

value

price
earnings ratio,

A.

Wilfred

relatively vague reliance
on
the "good stock."
And
part and parcel of the investor's
concept of that "good stock" is the

lently

through

the

least of

the

glamorized)

management.

various forms.
..

..

_

.

.

Even

diffi-

is sometimes a product
public relations, rather than of
actual performance—from which

sional

the

frequent

oscillation

the

of

corporate

•

bum (often accompanied by a reddish discoloration of black ink on
the earnings statement).
Too often is the public's estimate

disproportionately based

on

officials

an

stemming

compensation-often
from publicity attend-

ing a highly-colored

proxy

battle.

Just

not

For example,

might be considered only
growth in Recent
not realizing that industry-

earnings
on

the record of

years,

wide

or

ume

were

mar

nationwide

boom

cancelling

agement

in

vol¬

individual

management in
tor

founders,

sional

*This
a

is

the

series

eighth

attempts

ment

of

New

School

for

Social

Ma^age-

New

York

gj_

cit

through

its

Management
the workings of
publicly-owned companies
program,

Service

foundation
Excel¬

Managed

Companies, and
Certificate of Management

arithmetic

grade.

perfection

being

One
.

an

hundred-

from 95 down.
Leaving it to the

of his chronic basic

the

to

ings: is
items

largely

concerned

of -protocol

of

has

the

apathy toward
company
to

entrusted

and

Broadlv viewed,

the arousal of

interest

in

to

have

devised

what

with

company

And

the

promotion

of

realistic

attitudes toward management, in¬

cluding the removal of distrust
traditionally -embraced
by
too
post-meeting report,
many of the nation's existing and
officers' compensation, and cumu¬
potential shareholders, will supply
lative voting; they also issue a
an important fillip to that desired
voluminous annual report to their
healthv flow of equity capital into
proxy-givers, in which quite free
enterprise!
thorough and fundamental man¬
issuance of

a

treated.

are

Carl H. Oilman With

Functioning by the Funds

Dean Witter & Co.

In

<" (Special to The Financial Chronicle)
.

CHICAGO, 111.—Carl H. Oilman
has become associated with Dean
Witter

&

Street.*

Mr.

Co.,

Ill

Oilman

West
was

Monroe

formerly

Manager of the Municipal Bond
Department for the Chicago office
of Lee

Higginson Corporation.

shareholders of that responsibility.

With McCoy & Willard

The Broad Benefits

(Special to Ihe Financial Chronicle)

efforts

these

as

other

current

V FT.

to

appraise the quality of
company's management assur¬
edly have little scientific validity,

Arthur

LAUDERDALE,
W.

Silvester

has

a

Stockholders

and

Development

Sales

Vigor

Executive Valuation

questions,

which

wj&f

enable

Gairdner
320

on

%

Company Limited

Bay Street, Toronto, Canada

We provide

complete service for corporate

a

financing in Canada. Private enquiries from

exhaustive study of this unique
Company.

dealers

are

invited.

request.

Exchange

Winnipeg Stock Exchange

Hay, Fales & Co.

Montreal Stock Exchange
j

Vancouver Stock

Canadian Stock Exchange
Exchange

Members New York Stock Exchange

Broadway, New York 6, N. y.

Affiliate
ESTABLISHED 1694E

Gairdner $

STATE AND MUNICIPAL BONDS

CORPORATE BONDS

60 Wall

Company Inc.

Street, New York 5, N. Y.

LOCAL STOCKS
Member:
-

Robinson-Humphrey Company,inc.

The Investment
■

Montreal

Dealers'
Association

.

-

of Canada
RHODES-HAVERTY BLDG.

ATLANTA

WALNUT 0316

LONG




manage¬

should

Members

The

cap¬

help
remedy the abuses basically stem¬
ming from the separation of cor¬
porate ownership
from control.

floor, accessibility of the meeting
place, attendance of the auditors,

The Toronto Stock

71

his

1

stockholder

manners, as the chairman's atti¬
tude, toward questions from the

While

weigh the findings as
he deems best, the Forbes' editors

he

ital.

impossible

individual

affairs

whom

"minority" stockholders. While
ment/performance
their; watch-dogging at the meet¬

range

;
investor

business-like attitude in lieu

a

Policies

Research

Re¬

Copy available

Two

effect, the management in¬
dustry; which, tailored for the in¬ tangibility gap now is probably
best filled for the lay investor by
vestor, attempts to give him light
on that
basic question: how good the mutual fund's full-blown ar¬
is
this
company's management? rival on the scene. Insofar as a
For 1955, 171 companies in 16 in¬ fund's directors properly weigh the
dustries are rated; the coverage management element of the com¬
by- industries being rotated year- panies in the arrangement con¬
stituting its portfolio, do they pro¬
by-year.
Each management is given an fessionally
relieve its own lay

HAZELTINE CORPORATION
an

and

most

market-play¬
significantly, of

Directorate Analysis
Production Efficiency

These

We have made

One

with

awakening the public stockholder
to

different

a

and,

evaluation

realistic

of

contrasted

as

Fla.

—

become

connected with McCoy & Willard,
320 Mooney Point.
they consider and leave many gaps, and harbor¬
a
"set of simple graphic yard¬
4 000
ing some unfortunate potentiali¬
sticks" to answer these four ques¬
via 301 questions
ties, they • nevertheless do offer With Model, Roland Stone
grouped under
the foliowing ]0 areas 0fthe man_ tions about how management is much that is constructive.
(Special to The Financial Chronicle)
doing:
agerial process*
;'When done by an organization
FT.
LAUDERDALE,
Fla. —
(1) EARNING
POWER.
How with no personal axe to
Economic Functjon
grind, James S. Stubbs is with Model,
profitably
is management they substitute needed objectivity Roland & Stone of New York.
Corporate Structure
Health of Earnings

nizes_

by the author in the course, "Your
Investment Problems Today," at
the

the

implementing the constructive

approach

about management to their fellow

achievement, the ratings generally

Qne o( these operations
by the
American
InstitlTte of

lectures

search.

at

-

inves-

profesdefinitive apsome

•

instalment

summarizing

which the

are

praisal.

Fiscal
in

albeit

*

Partially filling the void in the
of
judgment about

A company's

errors.

by profes-

growing

formulation

.-I fai significance of a Au(jjt
quantitative
factor
ls
properly weighted.

efforts

are

An Institutional Technique

-

from-hero-to

But

and

scarce

slowly.

very

instances, of

leader's .reputation,

Nos,
On

rating technique is like¬
wise
exemplified
by
FORBES'
Annual Report on American In¬

the

forces

of,

that
divi¬

The

•

evaluation

uncertain.

manager

the

for

; agement

of

follow

comparative

Reports and the specific ratings

expert
is
the
gleaning of evidence about man-

,

In line with the American pub-

lic's proclivity for hero-worshipping, its picture of the corporate

these

is

research

by the Institute, a non-profit or¬
ganization supported
by grants

Ihe Public's Foibles
_

in

vaguely glamorous,

attributes that
be uncertain and irrelevant;

ing;

the

Excellence.

Not

profits
out

Minority Stockholders

culties confronting him is avoid- and
memberships, are generally
ance
of
subjective self-interest available to the
public free of
warping his judgment, on such charge.
questions as dividend policy and
Another Rating Attempt
agement aspects
management compensation in its

attribution of "good" (often mean-

highly

*

field

above-mentioned

for the

tions.

the

paid

mere

unglamorous,

may

for that

dends?

cor¬

through its Re¬

and

which'are

the

Nevertheless it remains impos¬
sible for the lay stockholder to
arrive at over-all tangible valua-

May

the

merely

for

worthwhile conclusions

It

"playing it by ear."

the

ing

"with

by other companies
industry. Also he can

from company statements

as

and with
function to

that

stitute

those

concern

of

search'

philosophy

one

any

function,

of

not

uses

plane, the Gil¬
bert Brothers, Lewis and John, the
porate policy as a whole.
This'
marathon
performers at annual
relationship is
assessed
in
the
comparative audits which the In¬ company meetings, render opinion

the

enhanced

is

are

are

in

with

manage¬

organizations, the Institute
Management does no correct¬
ing, nor embark on active en¬
gineering services. It merely en¬
in i. studies

or

ANCE. Is management find¬

of

gages

in lieu of

PLOWBACK PERFORM¬

ing profitable

sults

-

other

man¬

by

Pervading

(4)

ment

the Blue Chip

tative

to

which

And their

criteria,

.

during

*

In

,<

k

with

their

concerned with the over-all

of

ism.

the

companies

performance

1954.

do well

can

379

presented

of excellence of

management

account.

lay stockholder

which
were

ital and reinvested
profits, and to
sales
volume
for
demonstration

ownership,

of Blue

work

by inspecting basic ratios, as that
relating earnings to invested cap¬

public stock

(2)

into

of

year

certificates

volume and profit margins
during,
but as well as boom, must be

(1) the, broad¬
ening base of

and

this

during all phases of a busicycle, and vulnerability of

ness

before

investigatory

stockholders'

money to work?

4,000 companies are spe¬
cifically
rated
following
these
counts,

record

via either im-

—

answered

All

"HOW GOOD IS THIS COMPANY'S
MANAGEMENT?"*
man-

be

any full-scale
is done.

By A. WILFRED MAY

The investor's reaction to

must

the

as
well
as
experienced
and
broadly-based judgment for both
(2) GROWTH POWER. How inexperience and demagogic atti¬
fast is management
making tudes. For the lay investor they
stockholders' equity grow? highlight the management factor
(3) LAYOUT vs. PLOWBACK. as an important element in his
decisions. They impress him with
Is
management
letting
importance * of
specifically
stockholders share in the the
company
ac¬
profits through adequate scrutinizing ' each
cording to some logical standards,
dividends?
^

gather the necessary data for the

audit,

Kingston

Hamilton

Kitchener

•

Calgary

Quebec
London

'

Edmonton

New York

1, GEORGIA

Private wire system.

DISTANCE 421

v*. -a-—-

Vancouver
Winnipeg

6

The Commercial and Financial Chronicle

J

(2530)

Louisiana

Ameraia The Eeantilnl

nest

By IRA U. COBLEIGH

Enterprise Economist

f
I

Following the flow of oil from Amerada's amazing and far
flung acreages; with some notes about the pleasing propensity

;

[

Amerada

that

agree

the

income.

If

motive

you

by investors is
to

were

take

sort of

poll

sampling
broad

d

o«f

a

Gallup

•group
of in¬
vestors you'd

find

of

most

over

Cobleigh

U.

shown

a

That's

profit.

most
they're will¬

however,

issues,

so

on

ing to settle for close to 5%. But
that target yield keeps them

even

of

out

some

of

most reward¬

the

ing equities for long-term holding
insurance shares, chemicals

—life

and today's entry, Amerada,

which

$2 dividend yields a meager
2.12% at 94. And 1955, mind you,

on

a

delivered

highest
cash yield on this stock in four
years—2.45% a few weeks back.
So having dispatched the strictly
yield buyer with a few strokes
of the pen, in the first paragraph,
we

now

just

The

to

warm

our

task of delineating just
derful
and

pleasant

how won¬

stock Amerada has been;

a

that it's

shall conclude

we

ture

as

We

Abitibi Power & Paper Co.,
■

1955.

lor

Amerada

ducer. „./*

produc¬
per day

"

'

dusters and dry holes.
there has been a steady,

the

sets

never

sun

of

15

the Dakotas,
tial

full

or

in

acres;

States, prin¬

est

Canada

ARC

has leases

exploratory venture in Somaliland

(with Ohio Oil and Continental);
and, with the same partners, an
extensive exploration project in
Libya.
of

Amerada

exploration, early
a

truly impres¬

sive list of oil field firsts.
ada

ploration techniques.

It did some

early work for
Exploration
the early "30s/ and

valuable

pretty

Louisiana

Land

Company

in

was

Amer¬

first with geophysical ex¬

was

rewarded

of

and

by

low

213,000

cost

ac¬

shares

there under lease

acres

or

option,

and reserves which may conserva¬

have surely in¬
50 million barrels, and
plowback has exceeded

cash

the

So it's not hard to
that
ARC
is a
much

$100 million.
conclude

then.

ber

of-Amerada is its notable

fnow being completed, and
16.%% owned by Amerada) which
will
deliver
Sturgeon Lake oil

of

Mountain

Trans

Line;

Pipe

thence to Pacific

and

markets.

there is

(although

official company esti¬

no

in

over-all consideration

any

year

DeGolyer

ging
of

srrFed
drill

and- the truly amazing

has

the

Amerada has always stressed geo¬

any

hole

new

than

less

for

reserves

It hits

30%

of

notion

a

that

time which is considerably below

logical
fielded

a

.

high ground above the $85 million
recorded
For

who

those
disdain

some

this

1954.

for

the

still

view

with

$2 dividend

relatively high priced

on

stock,

Paper Co., Ltd., 4T/£%

Ltd.

;-j

Canadian Vickers Ltd.

about

Crown Zellerbach
Distillers Corp.

Dome Mines
Dominion

Bank of Nova

Britalta

is

area

always

|
,

mutual

10

or

funds, and

chances

at least four of them will hold

are

Amerada. That may tend to
a

"name"

or

create

scarcity value for the

issue, but it also proves that top
analysts
ceived
And

it out

a

have

consistently

per¬

solid value in this equity.

nobody seems eager to sell
even though its market ac¬

tion this year

short

ada

has been somewhat
scintillating.'

of

Total

Amer¬
Without any

capital paid in to

was

$11 million.

from in¬
stock
is still the sole, unsullied, capi¬
talization. Over $110 million has
been paid out in cash dividends
since 1922, and had you or I been
fortunate, or confident, enough in
1932, we could have bought this
authentic blue chip in black gold
has

expanded,

entirely

ternal sources, and common

for

$2—exactly the amount of the
dividend.
Long - time

current

stockholders

here may well sing
praises of ARC to the strains

the
of

Amerada

teen

the Beautiful.

fifty-five

reach

an

Nine¬

should

share

per

high—around

all-time

$3.90.

exploration jamin S. Willis

better

than

would

any¬

be

else's.

true.

That

But,

body

the record, Amerada

on

attracted

not

organization

its

fo

admitted

to

Brown & Sons.
ager

Mr. Willis is man¬

of the firm's

branch

Jan. 1 will be

on

partnership in Alex.

Winston-Salem

in the Reynolds Building.

Placer

.

Development Ltd.

Powell River Co. Ltd.
Prairie Oil Royalties

International Paper Co.
International Utilities Corp.

Company Ltd.

'

Price Brothers & Co. Ltd.

Pronto Uranium Mines Ltd.

Prospectors Airways Co., Ltd.

,

Ltd.

Seagram^, Ltd.

ti

<

Ltd.

-

il

Magnesium Ltd.

.

.

Liberal Petroleums Ltd.

1

V

■

.

Lorado Uranium Mines Ltd.

Royal Bank of Canada, The

-

J

-

•

n

Dynamics Corn.
Great Lakes Paper Co. Ltd.
Great Plains Development Co. of

Company Ltd.
Hydrocarbons Inc.
Canadian Industries (1954) Ltd.

Industrial

/

Ontario

on

Dredging Ltd.
Comnany Ltd.

all Canadian Exchanges at

*

Walker-Gooderham Worts, Ltd., H.

Winnipeg and Central Gas Co.
Yellowknife Bear Mines Ltd.

Pend Oreille Mines & Metals Co.

Acceptance Corp. Ltd.

Orders executed

regular commission rates.

Teletype N.Y. 1-142




CHARLES MING fi CO.
61

MEMBERS

Royal Bank Bldg.

Toronto Stock Exchange
American Stock Exchange

TORONTO

Broadway

NEW YORK

Montreal

WHitehall 4-8974

Direct

Wire

Stock

Exchange
Canadian Stock Exchange

Connections

-

~

Violamac Mines Ltd.

Opemiska Copper Mines (Quebec) Ltd.

Peace River Natural Gas

;

Ventures Ltd.

Jockey Club Ltd., The

Pato Consolidated Gold

,

Traders Finance Corporation Ltd., "A"
Trans-Mountain Oil Pipe Line Co.
Triad Oil Co. Ltd.

North Star Oil, Ltd.

Hoyle Mining Co. Ltd.
Hudson Bay Mining & S. Co. Ltd."
Husky Oil & Refining Ltd.

Canadian

The Toronto-Dominion Bank

.

Noranda Mines Ltd.

Home Oil Company Ltd.

Sullivan Cons. Mines Ltd.

Tech-Hughes Gold Mines Ltd., The

Ltd., The

New Dickenson Mines Ltd.

Canada Ltd.

*

Strategic Materials Corp.
;

Light & Power Pref.
Pap"* Co.

Moore Corporation

Gunnar Mines Ltd.

Canadian Bank of Commerce, The

Mexican

Steep Rock Iron Mines Ltd.

; *

Minn. & Out.

General

Campbell Chibougamau Mines Ltd.
Campbell Red Lake Mines, Ltd.

Canadian Breweries Ltd.
Canadian Chemical & Cellulose

McColl-Frontcnae Oil Co, Ltd.

Mclntyre Porcupine Mines, Ltd.
Mexican Light & Power Com.

Silver-Miller Mines. Ltd.

Masscv-Harris-Fcrgason Conv. Pfd.

Geco Mines Ltd.

Dredging Ltd.

Quebec Lithium Corp.
Quebec Metallurgical Ind. Ltd.
Qucmont Mining Corporation, Ltd.

& Exploration Co.
: I
:

MacMillan & Bloedel Ltd. Class "B"

Frobisher Ltd.

Ltd.

British Columbia Forest Prod. Ltd.
Bulolo Gold

Labrador Mining

Corporation

Falconbridge Nickel Mines Ltd.

J

Scotia, The

Petroleums

—

>

Dominion Stores Ltd.

Canada Oil Lands Ltd.
,

best managed
investment portfolios injhe lapd.
Pick out 10 big stock accounts,

WINSTON-SALEM, N. C.—Ben¬

Du Pont of Canada Securities Ltd.

Atlas Steels Ltd.

Bank of Montreal

,

on

of the most op¬

and

information

or

Interprovincial Pipe Line Co.

Anglo-Canadian Oil Co. Ltd.
Anglo-Newfoundland Development
Co., Ltd.
Argus Corporation Ltd.
Asbestos Corporation Ltd.

1

some

elite,

Kerr-Addison Gold Mines Ltd.

Consolidated Paper Corp. Ltd.

(

listed

sire

found in

ulent,

To Be Alex. Brown Partner

prospective

a

Canadian West. Lumber Co. Ltd.

American Leduc Petroleums Ltd.

5

6,309.400
are

of skillful oil hunt¬
to suggest that

The

Aluminium Ltd.

1

a

not

is

knowledge

ARC

has

corps

This

ers.

International Nickle Co. of Can. Ltd.,

Canadian Pacific Railway Co.
Canadian Pipelines & Petroleum

t

,

high
oil. — '
which
N.Y.S.E.,

they had

average in striking
The shares of Amerada, of

batting

information in depth, and

It will prob¬
ably produce around 84,000 bar¬
rels a day, this year, and gross
earnings should move into new
for the course.

par

'

f

an

a

optimist with

of

heart,

rabbit's foot. But
the success of
Amerada has been "just lucky"
should
be
summarily dismissed.

thing about this enterprise is that

it produces.

the

has

at

been,

it has the happy faculty of finding
barrel

to

the company and every

on

bit,

1929,

in

Presidency

fortune

Jacobsen

Alfred

Mr.

feet of gas;

barrels

for

in
1920
(he left
1932), good bird dog¬
brought in a succession of
winners; and since the accession
L.-

mate) some 600 million barrels in
oil reserves and 2% trillion cubic

each

nosp

in and year out. Starting
the guidance of Mr. E.

off under

Amerada in

Viewed in the aggregate, Amer¬

ada today probably has

The important thing to remem¬

oil,

when they drilled

security flotation since 1926, ARC

tively be stated at 90 million bar¬
The production future in this
is brightened by a new pipe¬

rels.

Chemical Research Corporation
Consolidated Fenimore Iron Mines Ltd.

i

today than it was

stronger stock

Algoina Steel Corporation Ltd., Com.

i

Sturgeon

creased by

Algom Uranium Mines Ltd.

■i

and

suc¬

Amerada sold as high as
45 times earnings.
But that was
three years ago and during that
time the cash
position has im¬

area

Canadian Javelin Ltd.

Ltd., New

New Pref.

1

by

up

proved, reserves

;

Sturgeon Lake in West Al¬

berta, Canada, Amerada was first
the scene and now has 650,000

dry

cost acquisition of drill¬

low

ing acreage, and

first to

on

IV2
whole history

The

has been early
and

At

into

Amerada owns par¬
interests in 6,140,000

1,650,000 acres; a 64^2% inter¬
in 138,000 in Venezuela; a vast

on

among the

Williston

at

cesses

Buoyed

line

Amerada.

on

United

the

was

splits).

Lake,

■

production in New Mexico
and is now that state's largest pro¬

of

years

.

Abitibi Power &

!

up

split

who developed real talent for
interpreting geological and geo¬
physical data, so that they ex¬
celled
in
making fortunate de¬
cisions
on
where
to
drill; and

men

actively in the following Securities in NET U.S. FUNDS;

trade

Com.

to

there might well have been debit

quisition

well.

In¬

of

eater

a

pretty slick oil stock for the fu¬

200

of

Standard

new

Amerada
the 20,000 barrel

pany that confines itself to -drill¬
ing and production of oil and gas!
With a less talented management,

the

about

there

diana

level

record in itself for a com¬

a

cipally in Texa^, California, New
Mexico, Oklahoma, Louisiana and

day

is being reinvested in the
property, and (3) that there has
been a history of stock dividends
that should have satisfied the most
avid. Amerada common was thrice
year

tion

has

it

quite

In

can't get it to¬

each

of actual cash earnings

80%

35

in

year

20's.
Ira

50% of reported net, (2) that some

for

36th

from the early

They

considerably more than

in. stepped

is-the

fifty-five
the life of

them, in the Instead
deep
recesses majestic forward march, in oil dis¬
of their minds, covery, production, reserves, and
yearn for a earnings, so that, today, Amerada
6% return. It's is the largest exclusively produc¬
sort of a tra¬ ing,
petroleum
enterprise
in
ditional goal America.
You might almost say
carried

that this

(1)

that

noted

been

Amerada—and for each of the last

equity market

dominant

for share purchase

and now has

be

it

has

Refinery nearby at Mandan,
N. D. (30,000 barrels) has resulted

Nineteen hundred and

reserves

barrels,*and 395 producing

million
wells.

the

first in the Wil1951

let

2-for-l; in 1946, again in
1951, and again this year.
It is, no doubt, true that Amer¬
ada did, in 1952, get a little ahead
of its horizon at 117y2 (adjusted

estimated

with the "mostest" oil.
of

Of this

common.

was

liston Basin in

of this storied enterprise for getting its drills there "fustest/'
Students

Land

50,000 shares were sold
last year at a fancy profit (above
$4 million) and 163,000 still reside
in the company treasury, standing
on the books at $59,246 but worth
in the market above $16 million.
egg,

Thursday, December 15,1955

,..

EMpire 4-6407

TORONTO, NEW YORK, MONTREAL

Volume 182

Number 5490

...

New Issue

The Commercial and Financial
Chronicle

J

'

.

_
.

'

'

'

,

December 14,1955

816.(10(1.(100
t

Q I I inrn i f\

; V

::

•

Carquinez Strait Bridges
3M% Toll
Bridge Revenue Bonds
Dated

September 1, 1955-

The Bonds of Series A

are

104% if redeemed

thereafter

at

on or

.

"v.;-,: A

7V-.
j:-•/ X */

redeemable prior to

from any source of available
at

•

funds,
before

in part,

or

maturity

by lot.

case.

at

prices

and after

on

;;

yr*.

Due

whole,

as a

on any

date

September 1, 19 95

and after September 1, 1961

on

September 1,1961 from Revenues

as
provided in the Resolution,
and including September 1, 1982; and
called for
redemption, the Bonds so to be redeemed

diminishing by yj of 1% each

In'case less than all of the Bonds of
Series A

"/• /-• *

///'

•<"-

interest payment date

on any

/

-

th^ option of the Authority either

September 1, 1967;-thereafter,

100%; plus accrued interest in each

will be selected

at

"::V'

are

year to

'■./

.

\

"•*-

/

/

:

.

'

Principal and Semi-annual interest (March 1 and September 1)
payable at the principal,office of American Trust
Company, San Francisco, California,
Paying Agent or at holder's option, at the principal office of
Irving Trust Company, New York, N. Y., Collection
Agent. Coupon bonds
■;
in denominations cf $1,000
registerable as to principal only. Fully registered bonds in
denominations of $1,000, $5,000, and
$10,000, or in multiples of $10,000. All of said bonds are
interchangeable as provided in the Resolution.
1
'
*
("
7 '
T

Interest

Exempt, in the opinion

of counsel, from Federal Income Taxes under
present laws,
; regulations and court decisions: also the Bonds
and the interest thereon are
exempt
from California Taxes except transfer,
inheritance, franchise and estate
taxes.

The Ponds-are issued under the
California Toll Bridge
Authority Act of the State of California and other applicable
pursuant to a resolution approved October
legislation, and
4,1955,-which authorized the issuance of a maximum of
of Series A are the initial
$80,000,000 bonds of which the Bonds
part thereof. In accordance with the Act and the
Resolution the bonds will be issued for the
funds for
purpose of providing

constructing the Additional Carquinez Bridge, and for the
improvement of the Existing Bridge, and for approaches and other
purposes^as'specified in the Resolution. The Bonds will not constitute a debt,
liability or obligation of the State of California, but will be
valid
obligations of the California Toll Bridge Authority secured
by a first lien on the revenues of the
tional
Existing Bridge, and of the Addi¬
Bridge, but only when the latter is open to public traffic and certain funds
applicable to the payment of the Bonds as set forth in
the
Resolution, but such revenues will also be applied to the costs of
operating the Bridges, including use and occupancy insurance. The
cost of
physical maintenance of the Bridges,
including cost of insurance against all risks is to be paid by the
out of funds available to it for
Department of Public Works
the maintenance of state
highways.
*
;■
i
Additional bonds not
exceeding #34,000,000 par. value may- be issued under the Resolution to construct the
Benicia-Martinez
and approaches to the
Bridge,
Bridges, and,-when the latter is opened to public traffic, all of the bonds issued
under the Resolution will be
secured by the Revenues of all of the
equally
Bridges.
■,/%./■ /"•
,

,

,

,

.

Price 103% and Accrued Interest

.»

V-.'

v

V'T

v

•

These Bends

are
offered when, as and if issued and received by us,
subject-to 'approval of legality by Messrs. Orrick, Bahlquist,
Herrington
Sutcliffe, San Francisco, California, Bond Counsel to the
Authority\ This announcement is neither an offer to sell nor a solicitation
of an
offer to buy any of these securities. The offering is made
only by means.of the Official Statement of the
.-.I obtained in
Authority,copies of which may be
any State in which this announcement is circulated
from only such of the undersigned and other dealers as
may lawfully offer these
"% securities in such State. It is expected that Bonds in
temporary form will be ready for delivery within 30
days, exchangeable for definitive' bonds.
-

id

-

-

1

-

v

Elyth & Co., Inc.

The First Boston Corporation
'■

i

-

Drexel & Co.

•

Blair & Co. '1C. J. Devine & Co.
Incorporated

R. H. Moulton &
Union Securities

Company

•

*

/•-

1 "

-

Lehman Brothers

/ /

Salomon Bros. & Hutzler

../

V

'

..

/

Estahrook & Co.

Corporation

>

.

.

William R. Staats & Co.

Braun, Bosworth & Co.

Central Republic

Incorporated

Dominick & Dominick

Dean Witter & Co.

A. C.

John Nuveen & Co.

Hornblower & Weeks

Paine, Webber, Jackson & Curtis

Reynolds & Co., Inc.

A. G. Becker & Co.

J. C. Bradford & Co.

Incorporated

John W. Clarke & Co.

(Incorporated)

Coffin & Burr

Dick & Merle-Smith

R. S. Dickson &

Incorporated

First of Michigan Corporation

The Illinois Company

Ira

Haupt & Co.

Hayden, Stone & Co.

Schoellkopf, Hutton & Pomeroy, Inc.




*

McDonald & Company

Stern Brothers & Co.

The Ohio Company

Stifel, Nicolaus & Company
Incorporated

Company

Incorporated

Hallgarten & Co.

4

f

Kaiser & Co.

•

J. Barth & Co.

'

W. E. Hutton & Co.

Allyn and Company
Incorporated

Hemphill, Noyes & Co.

Bacon, Stevenson & Co.

Company

Francis I. duPont & Co.

>

Ladenburg, Thalmann & Co.

<

'

(Incorporated)

Schwabacher & Co.

Bear, Stearns & Co.

Equitable Securities Corporation

Weeden & Co.

B. J. Van Ingen & Co. Inc.

Heller, Bruce & Co.

'

Kidder, Peabodv & Co/

Phelps, Fenn & Co.

White, Weld & Co.

•

F. S. Moseley & Co.

•

-

v

Merrill Lynch, Pierce, Fenner & Beane

Stone & Webster Securities Corporation

Alex. Brown & Sons

Goldman, Sachs & Co.

,

y

Corporation

R. W. Pressprich & Co.

Lee Higginson

Harriman Ripley & Co/

;

'

'

•

Incorporated

Smith, Barney & Coy

'

Stroud & Company
-

Incorporated'

*

L. F. Rothschild & Co.

Tripp & Co., Inc.

The Commercial and
8

Financial Chronicle

Thursday, December 15,1955

...

(2532)

York—Bulletin—Laird, Bissell &

of New

Guaranty Trust Co.

New York 5, N. Y.
Corporation—Study—Hay, Fales & Co., 71 Broadway,

COMING

Meeds, 120 Broadway,
Ilazeltine

Reed & Co., Fidelity

ration, 111 Broadway, New York 6, N. Y. Also
a report on Southwest American Houses, Inc.

Inc.—Analysis—Taylor & Co., 105

Street, Chicago 3,

Atomic

Review—New booklet—Harris,

Energy

120 Broadway,

Atomic

on

atomic map

30,

Upham & Co.,

Canadian

Economy

Monthly report

—

Wall Street).
Cigarette Industry—Analysis—E. F. Hutton & Company, 61
Broadway, New York 6, N. Y. Also in the same bulletin's
Montreal, Que., Canada (New York office 64

an

analysis of Railroads.

Currently Attractive Stocks

List of eight securities

—

Good-

York 5, N. Y.

body & Co., 115 Broadway, New

Federal and State Stock Original Issue

Church Street,

Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill Broadway, New York 7, N. Y.
Ira Haupt Watching Service—Descriptive booklet—Ira Haupt
& Co., Ill Broadway, New York 6, N. Y.

Investment Opportunities in

in

the

same

of

sions

Rates,

Bank

Outlook,

of

Chemical

North

320

Co., 45

and

York 4,

N. Y.

favorable—
N. Y.

1 Wall Street, New York 5,

review giving trading data
issues — Toronto Stock Ex¬

Stock Exchange—Monthly

the

on

than

more

1,000

listed

—

Report

Harris, Upham & Co., 12
Also available is an analysis

—

Broadway, New York 5, N. Y.
of Carborundum Company.
American

&

Co.

Inc.,

Co., Ill

Express Company—Analysis—Ira Haupt &

F.

Reilly

&

Co.,

Inc.,

Bristol

Myers

Wall Street,

80 Wall

Inc.,

Gannon,

&

140

10, Mass.

Company—Report—Thomson

&

McKinnon,

11

New York 5, N. Y.

Bymart-Tintair,

Inc.—Report—General Investing Corporation,

new

The Northern Trust
of
Chicago and The
Bank of Chicago

York,

Company

National

First

joint managers of a syndicate
that was awarded on Dec. 14 an

are

bonds

School

due

Dec.

Wm. J. Mericka & Co.

representing

Paul

being reoffered

are

—

William R.

Calif.

Analysis — Daniel D. Weston
Co., 140 South Beverly Drive, Beverly Hills, Calif.
—

Steel—Bulletin—J.

R.

Williston

&

Co.,

115

Broadway, New York 6, N. Y.
Foremost Dairies

Data

Bruns, Nordeman & Co., 52 Wall
Street, New York 5, N. Y. Also in the same bulletin is a
brief

—

—

analysis of Machine Tool Industry.

Sipp Joins

Organization, 100 Broadway, New York 5, N. Y.
is

a

memorandum

on

representative

Research

the New York

Stock

the

offering are:

have

that

the

firm

Micromatic Hone

Also avail¬

Trust

Co.,

a

ment

Newark, N.
Incorporated;

under

direction

the

pany,

viously
Sipp

Mr.

Paul

L.

Sipp, Jr.

was

During

nine

with

Investment

stock

cago;

New York Hanseatic Corpo¬

ration;
Auchincloss,
Parker
&
Redpath; Goodbody & Co.; Ander¬
son
&
Strudwick; Citizens and
Southern National Bank of South

Members: N.

omura




Y.

Revlon Inc.

Joins T. Nelson

^Special to The Financial Chronicle)

DENVER, Colo.—Lee W. Dolsby
has become affiliated with Inter¬
mountain

Securities,

Inc.,

O'Rourke

(Special to The Financial

Chronicle)

BEACH,

DAYTONA

Fla.

—

1714

Securities

DEPENDABLE MARKETS
~

Frank Edenfield Adds

.

(Special to The Financial

N.A.S.D.

With Security Assoc.

Material and Consultation

\ on

(Special to The Financial

ST.

ity
I-

376

61

Broadway, New York 6, N.
Tel.:

BOwling
Head

Green 9-0186

Office

Tokyo

Y.

Chronicle)

PETERSBURG,

bur C. Sievers

without obligation
NY

Chronicle)

Fla. — Charles L. Macurda has been added to the .staff
of Frank L. Edenfield & Co., 8340
Northeast Second Avenue.
'
MIAMI,

Broker and Dealer

Request

Security Dealers Association

pub¬

With Intermountain Sees.

™

Trinity Place, New York 6, N. Y.

Trends,"

lished monthly in the

Dwight F. Entwistle is now with
Co.
South Broadway. Mr. Dolsby was
T. Nelson O'Rourke, Inc., 533 Sea¬
Inc.; Varnedoe, Chisholm & Co.
Incorporated; Wyllie and Thorn- previously with Denver Securities, breeze Boulevard, members of the
Inc.
Midwest Stock Exchange.
hill; Newman, Brown & Co., Inc.;

Troster, Singer & Co.
74

Live¬

Affecting

"Factors

series,

mu¬

Administration.
is author of the

Stephens

Mr.

years

the

War

World

fice of Price

for

\

2400

Stephens

Personnel and Safety Director

as¬

sociated

Japanese Stocks and Bonds

HA 2-

W.

John

in

Dallas.

"Cattleman"
nicipal bond department of the magazine. He is a member of the
Courts & Co.; Stern Brothers &
New York office of the First of
Dallas Association of Investment
Co., Kansas City, Mo.; The Na¬
Michigan Corporation.
Analysts and the New York So¬
tional City Bank
of Cleveland;
ciety of Security Analysts.
First Securities Company of Chi¬

Member

on

unselling

business

II he was
of
Culver Aircraft Corp., of Wichita,
of
Paul
L.
Kansas, following which he was
Sipp, Jr. Pre¬
economists for Kansas in the Of¬

Kansas City; Clark,

©o., xta.

Prospectus

and

stment

n v e

c o

& Co.; Barr Brothers &
Co.; Roosevelt & Cross Incorpor¬

Co.

estab¬

s

*

Corp.

Primary Markets

Kawecki Chemical

research
i

Witter &
&

he

h i

economic

own

municipal
bond depart¬

Co.; City National Bank

For¬

operated

has

lished

of New

Corp.

York.

merly

Ex¬

change,

Sachs & Co.; Glore,
Forgan & Co.; The First National
Bank of Portland, Oregon; Dean

National

Securities and

announced

in

Stephens

for

New York City, members of

scaled to yield from
1.70% to 2.35%, according to ma¬

Carolina; Eldridge E. Quinlan

Four Corners Uranium Corporation—Bulletin—DeWitt Conklin
able

ing.
has been field

prices

Associated

Adolphus

Build¬

Tower

Sfern, Lauer & Go.
way,

John W.

—

Clark & Company, Inc.,

Stern, Lauer & Co., 120 Broad¬

bonds

The

Tex.

Stephens has joined the Invest¬
ment
Department
of
Perkins,

Mr.

net interest cost of

a

Inc.; Soden

stock & Company.

ated; Fidelity Union Trust Com¬

Analysis

America—Memorandum—Fulton, Reid & Co.,
Commerce Building, Cleveland 14, Ohio.

Stainless

Willi
Perkins, Glark Co.

Company;

Bank, Atlanta, Ga.;

Eastern

J. W. Stephens

H u g e r,
Barnwell & Company; J. W. Tindall & Company; Hancock, Black-

Investment

1, 1956 to 1975, inclusive.
The group bid 100.069 for 2.35s,

Catalin Corp. of

&

(Hot Springs, Va.)

1957

Nov. 3-6,

State of South

Capital Airlines—Bulletin—Bache & Co., 36 Wall Street, New
York 5, N. Y.

Union

Security Traders Asso¬
Convention.

ciation Annual

DALLAS,

Bank of

J.; Weeden &
Robert Winthrop & Co.; Shearson, Hammill
& Co.; Wood, Struthers & Co.; The
Citizens
and
Southern
National

—

Staats Co., 640 South Spring Street, Los Angeles 14,

Color Corporation of America

National

Northern Trust Co., and First
joint managers of syndicate
issue of school bonds.

Dodge

Street, New York 5, N. Y.

California Interstate Telephone Co.

Springs,

(Palm

1956

Calif.)

Goldman,

Corporation—Analysis—May

Federal Street, Boston

Biltmore Hotel.

24-27,

Oct.

Witter &

Chicago

The First National City

42

Broadway, New York 4, N. Y.
Bettinger

at the

Francisco 6, Calif.

turity.

Inc.—Circular—J.

Atomics,

of

marketing

at

Broadway, New York 6, N. Y.
Basic

Bank,

City

Bank

National

120

Broadway, New York 5, N. Y.
American

30th annual dinner

Association

—

2.3434%.

Co.—Memorandum—Walston

Can

(New York City)
York
Security
Dealers

New

in the same

of California—Analysis—Dean

Turnpike

National

First

Carolina
Laboratories

12 noon.

to be held at

March 9, 1956

Montgomery Street, San

issue of $20,000,000

change, Bay Street, Toronto, Ont., Canada.

Abbott

..

ciation Annual Convention.

New

Secondary Issues—42 selected stocks which appear
Toronto

.

(Philadelphia, Pa.)
Investment Traders Association
of Philadelphia annual dinner
at the Bellevue-Stratford Hotel,
with a luncheon and reception

$20 Million South Carolina Bonds Offered

up-to-date com¬

market performance over a 13-year period —
Quotation Bureau, Inc., 46 Front Street, New

Francis I. du Pont & Co.,

the Parker House.

March 2, 1956

National Security Traders Asso¬

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
National

(Boston, Mass.)
Boston Security Traders Asso¬
ciation annual winter dinner at

Feb. 10, 1956

Comprehensive analysis — Blair &
Incorporated, 44 Wall Street, New York 5, N. Y.

Co

Hotel.

Meeting at the Drake

Ltd.

Over-the-Counter Index—Folder showing an

yield

Company

West Virginia

Producers—Analysis—Scherck, Richter Company,
Fourth Street, St. Louis 2, Mo.

Natural Gas

Oil

National

ciation

Spinning—Analysis in current issue of "Weekly Stock
Securities Co., Ltd., 6, 1-chome, Kabuto-

Union

Asso¬
Committee

National Security Traders

Also available is information in

cho, Nihonbashi, Chuo-ku, Tokyo, Japan. Also
issue is an analysis of Kanegafuchi Spinning.

•

Beacon" are discus¬

(Chicago, 111.)

Jan. 30, 1956

Bulletin"—Nikko

Mitsui Chemical Industry Co.,
Co., Ltd., Tokyo Gas Co., Ltd.,

and Tokyo Electric Power Co.,

Hotel.

Fairman, Harris &

Springs, Inc.

Tokyo

analysis of Business Results and

and

analyses

and

Sumitomo

Ltd.,

Air

—

issue "Nomura's Investors

—

Corp.—Data—D'Avigdor Company, 63 Wall

Street, New York 5, N. Y.

Analysis — Nomura
Co., Ltd., 61 Broadway, New York 6, N. Y. Also

Securities

Memorandum

Value Line Income Fund.

on

Saaty Fuel Injector

Japanese-U. S. Taxation Conventions

—

30 Pine Street,

7, N. Y.

Traders

annual

Co.

Petroleum—Analysis—Seligman, Lubetkin & Co.,
New York 5, N. Y. Also available is a bulletin

Royal Dutch

& Transfer Tax Rates—

Booklet—Registrar and Transfer Company, 50
New York

—

(Chicago, III.)
Club of Chicago
dinner
at the
Drake

30, 1956

Bond

Salle Street, Chicago 4, 111.
Oliver Corp. — Memorandum — Newburger, Loeb & Co., 15
Broad Street, New York 5, N. Y.
Parker Rust Proof Company—Bulletin—Reynolds & Co., 120
Broadway, New York 5, N. Y.
Rio Palmer Oils Limited—Analysis—Burns Bos. & Company,
44 King Street, West, Toronto 1, Ont., Canada.
,. v* , \
Riverside Cement Co.—New views—Lerner & Co., 10 Post
Office Square, Boston 9, Mass.
*
'

Bank of Montreal,

—

Hotel.
Jan.

Co., 209 South La

W., Washington 7, D. C.

the

at

Dinner

ter

111.

Manufacturing

Oak

1955—Atomic Development Securities Co., Inc., 1033 Thir¬

tieth Street, N.

South La Salle

Life Insurance Co.

report containing com¬

fusion, thorium, and uranium oversupply—
also available—both contain portfolio as of Sept.

Mid-Win¬
Southern

sociation 21st annual

Co. of Hartford — Memorandum —
Walter C. Gorey Co., Russ Building, San Francisco 4, Calif.
Also available is a memorandum on Connecticut General

New York 5, N. Y.

Confusion—Quarterly

Fusion

mentary

Baltimore Security

Insurance

Fire

National

(Baltimore, Md.)
Traders As¬

1956

Jan. 27,

available is

Field

Investment

In

Inc.—Report—Aetna Securities Corpo¬

King Bros. Productions

Merck & Co.

EVENTS

N. Y.

York 6,

New

Ilycalog, Inc. — Memorandum — Keith
Union Life Building, Dallas 1, Texas.

is

now

Fla.—Wil¬
with Secur¬

Associates, Inc., 137-139

DEMPSEY-TEGELER & CO.

England Avenue,

the

Philadelphia-Baltimore

MiHwpst

Stock

East

members of

New

Exchanges.

and

Volume 182

Number 5490

..

.

ers

Association, 12 East 36th St.,
16, N. Y.

New York

conduit with plants at

Alfred S. Foote Director

H.

Giddens

Century-Crofts,
32nd Street, New

Appleton-

—

Inc., 35 West
York 1, N. Y.

(cloth), $7.50.

CHICAGO,

Automatic Merchandising
-

\-

1956

—

directory — National Automatic
Merchandising
Association,
7 United
ance
South Dearborn Street, Chicago

Company,

States Business
Abroad:

Creole

3, 111. (cloth), $3.00.

,

Case

Petroleum

La

Commercial

of

Manual

of

Association

Laws—National
*

Credit Men, 229

Fourth Avenue,

New York 3, N. Y. (cloth), $10.

.

.

Stanley

Street.

Mr.

Baron

of

Hampshire
Avenue,
N.
W.,
Washington 9, D. C. (paper), $1.

formerly with

his

own

investment

business

Cashiers of Wall Street

Alfred S. Foote

KANSAS
At

E. Davis is

meeting

of the board of
directors held Dec. 13, 1955, Al¬
fred S. Foote, Vice-President of J.
P.
Morgan & Co. Incorporated,
a

Dining Out—
Pub¬

Dreicer—Crown

CITY,

Mo. —Robert

Annual Christmas Party

with E. F. Hutton

now

.

&

Company,

111 West Tenth St.

The

Cashiers

Wall Street, Inc.

With Remmele-Johannes

Association

Christmas

get-together

Tuesday.

A

(Special to The Financial Chronicle)

MERRILL, Wis.—Leon P. Tabor

;

is

now

affiliated

Johannes & Co. of

Remmele-

served

Granville, Ohio.

and

buffet

by all.

with

a

good time

"

Y

Rule s—Monograph—

Dow Corning
1956

Corning

New Issue

Silicone Products—
Guide

Reference

—

$20,000,000

Dow

Midland,

Corporation,

Mich.

Ear

State

Marked

Taxes

—

The

State of South Carolina

Tax

Foundation, 30 Rockefeller
Plaza,
New York 20, N.
Y.
(paper),
single
copies
free;
quantity prices on request.

2.35% State School Bonds

Economic Development of Malaya

Mission Organized
by the International Bank for
Reconstruction
and
Develop¬

—Report of

ment

a

The

—

Johns

Dated December 1, 1955. Principal and
South Carolina, or at

Hopkins

semi-annual interest (June 1 and December 1) payable at the State

Treasury, Columbia,

The First National City Bank of New York. Coupon Bonds in denomination of

$1,000, registerable

as

to principal only or as to

both principal and interest.

*>,Press, Homewood, Baltimore 18,
Md. (cloth), $7.50.
Foreign Agricultural Trade of the
United States 1954-55 — United
States

Department

of

Agricul¬

Foreign Agricultural
Service,
Washington,
D.
C.
(paper).

tural,

Foreign

Protective

Bondholders

Council

Inc.

—

1953

Report

Foreign Bond¬
holders Protective Council, Inc.,
90 Broad Street, New York 4,,
through

N. Y.

1954

opinion, as Legal Investments for Savings Banks and Trust Funds in New
and certain other States and for Savings Banks in Massachusetts and Connecticut

Eligible, in

In the

our

opinion of counsel named below, these Bonds will constitute general

•

to> Wood

brochure

—

W.,

paper

Due

—

Eighteenth

Washington 6,
(on request).

D.

Nation—Proceedings

of

$1,000,000 each December 1, 1956-75, inclusive

to

Due

Due

Yield

or

Prices

1956

a

1.70%

1962-63

2.10%

1957

1.85

1964-65

2.15

1958

1.95

1966-67

2.20

1959

2.00

1968-69

2.25

1960

2.00

1970-71

2.30

1961

2.05

1972-75

100

con¬

HarriCampus of Columbia Uni¬

Columbia University
2960
Broadway,
New
York 27, N. Y.
(cloth), $3.50;
(paper), $2.25.
—

Press,

A

Industry:

(price)

(Accrued interest to be added)

Market Structure of West Virginia

of
Rail
1948-1952—

Study

Freight Shipments,

Jere W. Clark—Bureau of Busi¬
ness

Yields

Prices

St.,
C.—

ference at Arden House,

versity

1

AMOUNTS, MATURITIES AND YIELDS OR PRICES

Markets

Improving the Work Skills of the

man

derived from the

■

Timber Engineering

1319

Company

York

obligations of the State of South Carolina, for the

pledged its full faith, credit and taxing power and, specifically, the first revenues

payment of which the State has
South Carolina retail sales tax.

(paper), $6.00.

Guideposts

N.

—

Exempt from Federal Income Taxes under Existing Statutes and Decisions

Interest

Research, College of Com¬

West Virginia University,
Morgantown, W. Va. (paper).

merce,

after appearance of this advertisement, for delivery when, as and if issued and
approval of legality by the Honorable T. C. Callison, Attorney General of the Stale of South Carolina,
& Wood, New York City, and Messrs. Sinkler, Gibbs & Simons, Charleston, South Carolina.

The above Bonds are offered, subject to prior sale before or
received by us and subject to the
Messrs. Hawkins, Delafield

Motor Truck Facts 1955 Edition—

Automobile

As¬

Manufacturers

sociation, New Center Building,
Detroit, Mich, (paper).
New Horizons in

Business—Edited

Hirsch — Harper &
Brothers, New York, New York
by Julius

(cloth), $3.00.';
Trial

and

Jury

Monograph—Practicing Law In¬
stitute, 20 Vesey Street, New
York 7, N.

Bank of New York

Glore, Forgan & Co.

Goldman, Sachs & Co.

Kansas

City,

Courts & Co.

Y.

Stern Brothers & Co.

J.

—
Profit Sharing
Foundation, 1718

Jehring

Sherman Avenue, Evanston,

New York Hanseatic

111.

Citizens and Southern National

(paper), $1.00.

Newark, N. J.

Wood, Struthers & Co.

Bank

First Securities Company of Chicago

of Cleveland

Auchincloss, Parker & Redpath

Goodbody & Co.

Incorporated

Your Child Be a Banker?

New York Life
Insurance
Company advertise¬
ment in booklet form, contain¬
—Reprints

of

ing a narrative by Fred F.

Flor¬

President of the American
Bankers Association—available
on
reouest from Public Ra¬

Wyllie and Thornhill

Council, American Bank¬




Newman, Brown & Co., Inc.

Huger, Barnwell & Company

ence,

tions

Anderson & Strudwick
Varnedoe, Chisholm & Co

Eldridge E. Quinlan Co. Inc.

of South Carolina

Should

Incorporated

The Citizens and Southern National Bank
Atlanta, Ga.

The National City Bank

City, Mo.

Corporation

Clark, Dodge & Co.

Roosevelt & Cross Fidelity Union Trust Company Weeden&Co.
Incorporated

Kansas

Research

of Portland, Oregon

Shearson, Hammill & Co.

Profit Sharing for Small Business
J.

Dean Witter & Co.

The First National Bank

Moj

Robert Winthrop & Co.

The First National Bank of Chicago

The Northern Trust Company

Barr Brothers & Co.

City National Bank & Trust Co.

Trial Pro¬
cedure in the Federal Courts —

Pre

The First National City

December 15, 1955.

Wm. J. Mericka & Co. Inc.

J. W. Tindall & Company

party

supper'

$3.95.

Practicing
Law
Institute,
20
Vesey Street, New York 7, N. Y.

of

held their annual

Discovery Proceedings Under the
Federal

in

New °rleans and Tulsa"

(Special to The Financial Chronicle)

Venezuela—Wayne C. Taylor
and John Lindeman — National
Planning Association, 1606 New

are

Mr. Wagner
Renyx, Field
Co., and Slayton & Company,
Inc., and in the past conducted
was

Joins E. F. Hutton Co.

Corporation

Officers

Wagner,

&

officer of Arthur M.

an

business.
H.

tary and Treasurer.

was

Krensky & Co., Inc.

Guide Videotown 1948-1955
(8th annual was elected a director of Rome
edition) — study — Cunningham Cable
Corporation, Rome, N. Y.
&
Walsh,
Inc.,
260
Madison
The company manufactures elec¬
lishers, Inc., 419 Fourth Avenue,
Avenue, New York 16, N. Y.
New York
16, N. Y. (cloth),
trical wires and cables and steel
(paper).
to the Fine Art of

Maurice

Clarence

Perform¬

Study

Diner's Companion, The: A
.

Salle

formerly

in

Credit

—

securities

Barclay Investment Co., 39 South

195
Broadway, New York 7, N. Y.
(paper).
Telegraph

111.

>

ORLEANS, La.—Wagner
Investment
Co., Inc.,' has been
formed with offices at 3959 Elysian
Fields
Avenue
to
engage
in a

Baron has become associated with

Telephone

brochure—American

Inv. Co.

NEW

President;
Norman
Levenson,
Vice-Presi¬
J. dent; and Ann C. Wagner, Secre¬

(Special to The Financial Chronicle)

Telephone Statistics of the World—
&

Forms Wagner

Stanley Baron Joins
Barclay Inv. Go.

Oil Pioneer of the Middle West
Paul

Rome, New
Torrance, Calif.

York and

(Indiana):

Standard Oil Company

0

(2533)

The Commercial and Financial Chronicle

Soden Investment Company

Hancock, Blackstock & Company

was

on
was

had

The Commercial and Financial Chronicle

..

.

(2534)

10

"The Carrot Instead oi the Slick"

ers

so

the

unprecedented prosperity
for both capital and labor "got that way" because Eisen¬

Secretary Weeks maintains present
I

for heavy hand

ment

of government

the economy. Predicts

on

j
j

The

has

Manufacturers

of

Association

National

excellent

an

in

substantial increase per¬

a

private
competitive
enterprise
system
have

world

finally, business

And

ment, if on the ball,
ventory problems to
the hills and valleys

in

cycle

ness

history.

or

war

High Capital Expenditures

Ameri¬

our

cause

under

buying

policies

and en¬

more

of

Mr.

great

day

be¬

enterprise

is

utor

gain—producer, distrib¬
and consumer organized to

sell

and

pensions

that

vested

in

the

business
When

industry

—

fruits

of

encourage

business

Pros-

large

or

rges me—a

government expenditures. While
government
expenditures
have
been dropping $15 billion in three

ness

and Pacific Railroad

Equipment Trust, Series UU

To be

Equipment Trust Certificates

$250,000 semi-annually July 1, 1956 to January 1, 1971,

inclusive

guaranteed unconditionally as to payment oj principal and dividends
Chicago, Milwaukee, St. Paul and Pacific Railroad Company
Maturities

Yields

Maturities

3.00%

1956

Maturities

-Yields
3.2 5%

1959

1963-64

by

Yields

3.375%

Jan. 1957

3.10

1960

3.30

:

1965-66

3.40

July 1957

3.15

1961

3.325

1967-68

3.425

1958

3.20

1962

3.35

1969-71

3.45

Issuance and sale
The

oj these Certificates are subject to authorization by the Interstate Commerce

Offering Circular

may

Commission.

be obtained in any Stale in which this announcement is circulated from

only such of the undersigned and other dealers, as may

lawfully offer these securities in such State.

years,

One factor in

the

particular encour-

recent survey of busi¬
capital expenditures for '56,
details of which were pub¬

Depart¬
recently. This survey indi¬

lished

by the Commerce

ment

equip¬
ment expenditures estimated for
t'le first quarter of 1956 will be at
-the annual rate of 12% over the
that

cates

and

plant

new

iccord year now closing.
Such a clear demonstration

of

the
confidence in
the future.
And I may add here
that in our delicately
balanced
business

of

economy

when

shake the con¬

we

fidence of either the customer

or

risk fractur¬
base on which we

the businessman, we

ing

the

very

fact of the high

stand.
or

not

our

economy

however, depends in large meas¬

Specifically, for example — as
in "Business Week" on
March 5 of this year—Dr. Keyser-

Decembei 8

of

and

ment

business

management

as

is

Some

pricing

watch

place

to

From

1939 to January

policies.

1953 infla¬

tion held sway—the value of

the
dollar depreciating to the extent
ct 47%.
Since January 1953 the
of the dollar has

value

bilized and
within

held

Vz %

to

and

a

been

sta¬

variation of

this

we

course

naturally want to have continue.
Insofar as prices are concerned,
there's
no
occasion
today
to
all

charge
I

will

the

hope

traffic

will

bear

business management

exercise

statesmanlike

re-

Etraint in this respect.

people cannot seem to

3%

of

the

Gross

National

Product in 1929 and 5% in 1939 is
•An

$2,625,000

and it is almost axiomatic that the
more

and

the

address

less

that

government

the wealthier
people will be.
So far
the

all

Missouri Pacific Railroad

our

But what about

good.

so

of

Equipment Trust, Series C

future?

deceive

Don't

yourself.

by

We

Secretary

their

again

can

himself

Weeks




of

be¬

they
with the econ¬
businessman fool

no

that

is

guaranteed

can

regardless

calls the shots in
There

*

nothing

prosperity,

no

Tcrmature ?175,000 annually Jahuary 1,

smash

to

where

power

tinker

Let

omy.

to

to

way

To be guaranteed
Trustee

stems

ernment

from

we

payment oj par

J

1971, inclusive.

value and dividends by endorsement by the

of the property of Missouri. Pacific Railroad Company, as Trustee

Priced

who

such

thing

as

a

prosperity.

but not individually.

to

yield 3.50% for all maturities

Issuance and sale
The

the kind

have

of

of these Certificates are subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any State m which this announcement is circulated from only
suck oj the undersigned and other dealers as may lawfully offer these securities in such State.

gov¬

today.

Future
will depend in large*
the kind of government

HALSEY, STUART &. CO. INC.

prosperity
on

as to

:

to

Washington.

annual

we

unconditionally

1957

happen
of

Current prosperity in large meas¬
ure

Equipment Trust Certificates
(Philadelphia Plan)

fight

offensive

counter

a

R. W. PRESSPRICH &, CO.

FREEMAN & COMPANY

have tomorrow.

Who

nationalized

the

steel

in¬

THE

ILLINOIS

private

enterprise

in

Czechoslo¬

Who closed down the pub¬

business

in

Argentina?

COMPANY

INCORPORATED

dustry in Britain? Who wiped out
vakia?

Association

3lA% Serial

war.

against dy¬
namic conservatism are mounting

lishing

National

the

won

who

Those

Manu¬

the

;

of such things that are made

facturers, New York City, Dec. 17, 19SS.

fore

un¬

making things the people can use

part

Secondly, instalment debt which
was

INCORPORATED

derstand that wealth is created by

con¬

cerned, it will do well in the first

F. S. YANTIS & CO.

for more and bigger
expenditures.

ling called

have not

far

McMASTER HUTCHINSON & CO.

& CO., INC.

1955

have gained a bridgehead, but we

As

IRA HAUPT & CO.

hikes in government

manage¬

ment.

J GREGORY & SONS

; MULLANEY, WELLS & COMPANY

the action both of govern¬

on

BAXTER, WILLIAMS & CO.

&. CO.

|

& COMPANY

WM.E. POLLOCK

continues to flourish and expand,

and

our econ¬

R. W. PRESSPRI.CH

FREEMAN

the advocates of big govern¬
ment planning call for more gov¬
ernment spending.

spends,

Whether

ure

level of

HALSEY, STUART &. CO. Inc.

.

omy,

reported

the momentum of prosperity is

lesult

private expenditures have
picked up to the extent of $34
billion. But still and despite this

December 9,

1955

we

mortal in this entire nation.

Chicago, Milwaukee, St. Paul

mature

the Ameri¬
system,

single

$7,500,000

To

en¬

expanding

act in the interest of every

out

3%%'

people

prosperity.
we

private

can

He said and I quote:

leader.

the

because

way

buy — people
drawing
interest on savings in¬

or

joying

by James Carey, the labor

got

such

.

mutual

day I came across a state¬

ment

believe

labor Organized for

and

agement

The

being opposed.

,

Business itself is people—man¬

economic

Sound

really

Carey

stuff and nonsense?

be

to

the

the

private

attack.
are

needs

about

issues

economic

result,,, the American
earning more, produc¬

public

truth

Mr. Carey is

of in¬

leveled

economy

war

a

the

that if

|

manage¬

purpose

my

is exercised in

-

say

aghast, there is no word in the
English language to describe my
aghastness at his statement.
Can

to

other

We

year.

not

the

prosper,

continue

to

are

I

course,

.

on

■'* y'f

people

life than before.

this deliberately debasing the cur¬
rency
in order to soup up the
morning, however, to do much by
economy.
■ ]"■ j:fj/.j.f...
■way of helping these portents in
And additionally, I think it can
their forecasting job. For the first
tlx months at least I am confident fairly be said that we have laid
we'll move to-a higher plane— the ghost of that theory of So¬
for the balance of the year I'm cialists and left-wingers that to
have prosperity one has to have
optimistic.
is

It

are

more,

shared—anywhere,

_

If

bad by what

all

greatest

earth.

country are

of

the

joying more of the good things of

more and more as we move in the
Many of our
improvement of business practice
problems
Sinclair
Weeks
and procedure.
today are the
These are some of the things
problems of plenty — surpluses
management can do, but govern¬
and diets to shrink the waistline
ment too can do much and since
—traffic bottlenecks and the deci¬
January 1953 has.
sion as to which new car to pur¬
Your present Federal Govern¬
chase—jam-packed stores and the
ment has removed controls so as
question of how Santa Claus will
to let a free economy operate.
be able to shoulder such a big
It has been steadily liquidating
bundle of Christmas presents.
government-operated business and
Sufficient returns are in to in¬
making real progress in this area.
dicate that 1955 will produce an
It has made record tax reduc¬
all-time high insofar as the level
tions but much more importantly
of business activity is concerned
it has ceased the practice of using
and we are close enough to 1956
the tax system to change the so¬
to be giving careful consideration
cial order.
tc what the portents forecast for
It has avoided the practice of

the coming

a

produced

have

ever

told

interests

encouraged

economy,

has

prosperity that capital and labor

the end that
in the busi¬

be

may

As

self-

self-managed,

a

Of

can contin¬

ually improve its handling

the

greatest
prosperity

ing

def¬
inite responsibilities with -respect
to the extension and character of
consumer debt.
' ;

our

best

people

management that it has very

coupled with

created

the

,

understanding, government,

an

which

business,
freedom for

or

That power now

cans.

by

on

this

in

encouragement.

supporting

of 3 business,

business,

affected for good
Washington does.

"So people may centagewise, there's nothing to
prosper." Today people do prosper. worry about yet, although the fig¬
ures
in
second-hand car lots—
The
imagina¬
$5.00 down, etc.—and the droning
tion, resource¬
night after night over the air of
fulness
and
the
slogan
"You pay nothing
efforts of 166
down" make me remind business
million
free
Americans

must

taxes

business—all

this year:

theme

of

for the country."
understand that

Result:

business, competi.ian

business,

costs

business is good

goodwill.

Policies

laws.

of
the
present Administration keyed to
the belief that what is good for

frcm

sense

common

on

makes

markets for

Despite the fact that

today 7%.
this is

the

self-

the

occasionally labor leaders play
politics as do politicians, but I

writes the laws and who executes

business will rise further in first half of 1956, and expresses
optimism about balance of year. Cites likely rise to new peak
of new plant and equipment expenditures.

\

with

it

that

at

tactics

greedy

the worthless hunch
no" difference who

should

gambling

aghast

are

serving,

We
have
spurned the path of socialism and
taken the path of freedom and

of the world and
of our own recent
keep any business¬

memory

man

friendly hand of encourage¬

hower Administration substituted

government from the economy
and substituted the friendly hand

many areas

past

a

of

cf

"We

a

stick.
We
the heavy hand

of

withdrawn

have

business

The obstacles placed on
in

instead

carrot,

Who but government.

ness?

Secretary of Commerce

in

Who did all that to busi¬

Siberia?

WEEKS*

By HON. SINCLAIR

slaves to the coal mines

as

Eisenhower Administration used

work¬

Who sent businessmen and

Thursday, December 15,1955

McMASTER HUTCHINSON &. CO.

Volume 182

Number 5490

.

.

The Commercial and Financial Chronicle

.

(2535)
business makes jobs and
increases the prosperity of every¬

ital

one—the record of the last several

Administration

perous

certainly

years

do

this.

proves

This is where you come in.

perform

another

service.
ates

Manufacturers

of

You

in

this

great

can

public

tell your associ¬

can

organization,

counterparts

your

the

nation,
home town

across

the

where

private
by

cap¬

authorization

after

I

is where the National As¬

This

sociation

River

Snake

has

this

moved

in

to

job.

nington,

L. Parks Shipley, and
Knight Woolley.. Limited partners
The

are

Honorable

Harriman

government over the
Communism to
Here we fight to pre-

repeat,

and

W.

With A. & C.

DENVER, Colo.—Paul

Gerry Brothers &

Capitalism.

Capitalism.

prised that

We

not

are

where seek to overthrow
but

tem

we

our

sys¬

surprised that

are

so

in this country want to do
the same thing.
-

employees, your
people—better than anyone else—
the
truths
which
they
should

many

know about economic issues.

7 CHICAGO, 111.—Christopher
Janus

has

become

affiliated

I

tance I

the

overstate

cannot

in

impor¬

thorough and good
Job being done—for in a, democ¬
racy
unless the people support
sound policies affecting their live¬
see

lihood,

a

people will

the

the

the

of

people

will support sound pol¬
^the.y know the facts and

-'

We

In

them.

\

frequently

thanks

elements
impatience be¬

government hasn't brought

cause

in

millennium

the

mid¬

before

,

night. .Too often—it seems to me
-—the voices of many businessmen
heard

seldom

are

except when

a

interest seeks a special
favor or a particular segment has
a
particular gripe.,
special

•

believe

I

business

all

would

me

exactly
room.

the

for

because

is

for

good

of

Instead

people..

of

some

rarely heard

being

American

the

my

yourselves and your country well
if you were heard

the

of

support

in constructive

great

-V

-

movements

Weeden Adds

Bros.

to

and

Midwest

Stock

Exchanges.

Mich. —Gordon

Hutchinson is

&

now

Goodbody & Co., Penobscot Build¬
ing.

With Arthur M.

Staff

Krensky

(Special to The Financial Chronicle)

MUSKEGON, Mich.—Richard D.

Weeden &

of

McCormick,
Arthur M.

Co., 24 Milk Street.

Jr.

is

now

a

Chicago.
f

This

announcement

is not

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

an

The

to

buy these securities.

and

better

you

active

individuals

as

un¬

support

to

$25,000,000

I

give
that

to

programs

prosperity for the American

people.- Let the voice of business

New

Jersey Bell Telephone Company

progress.

Forty Year 3A% Debentures

Brown BroSrltarrinrcn
Dated December

1, 1955

Due December

1, 1995

TclditiHTwo
Elbridge T.- Gerry and John C.

,

Price 100.99% and accrued interest

West will become general partners
in
the private banking firm of

brothers Harriman &

Brown

Co.,

afoot to make the lot of all Amer¬

*

icans better.

.

_

.

I We in the Administration have
quite

bit of unfinished business

a

The

that needs to be done for America.
We need your
to

make

sure

have

We

:

.

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

continuous supportit gets done.

great

a

in

program

partnership with states and com¬
munities
to
provide
urgently
needed
schools, health facilities,,
airports, and highways, including
completion to modern standards of
the
huge 40,000-mile Interstate
Highway System — adequate for
.modern needs and a growing pop¬
ulation — the
greatest
highway

HALSEY, STUART & CO. INC.

..

project in the history of mankind.
In

schools,

new

we

propose

.some.Federal aid in construction,
distributed

according
to
needr
incentive for

without reducing the

community

and

state

endangering

Without

local

school

ways,

we

of
high¬

freedom

systems.

lean

and

effort

In

toward

pay-as-

a

you-go policy.
We have a realistic program, as
'

recommended by the Cabinet Ad¬

SALOMON

F.
T.

John

Gerry

C.

give

all

S.

SMITHERS &,

GREGORY &

;

less

at

expense.

Eisenhower

The

includes

also

program

farm

sound

a

program;

promotion of world trade; devel¬
opment of water resources; meas¬
ures to help chronically distressed
^reas to
help themselves; further
commercial
and sound

of atomic energy

foreign aid to help
the four

friends in

earth

use

us

for

a

just and lasting peace.

Street, New York City, on
Jan. 1,1956, it has been announced.
Mr.

Gerry

been

has

associated

with the firm since 1936. A
ate

Gerry served

COURTS

f

domestic

the

On

whole

the

over

as

Overriding

as

front

face

as

of

well
the

is also

a

Brothers
limited

in

1934, and in

been

a

of the

Co.

is

President

Church

he will make his

Established

Brothers

GREEN,

&

BAXTER, WILLIAMS & CO.
COOLEY & COMPANY

CO.

THE

ILLINOIS

COMPANY

INCORPORATED

BALL, BURGE & KRAUS

ELLIS & ANDERSON

IRA

||

This announcement is not
-.v

-

HAUPT & CO.

'

\

;

'

"

in

assets

of

In

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

an

The

—

r

$2,500,000

has

the
of

North Shore Gas

Sea¬

Phila¬

18

18,

&

Company

(A Massachusetts Corporation)

year,

headquarters in

Harriman

First Mortgage

Bonds, Series B, 4%, due 1975

Brown

Co.

is

the

Dated December 1,

approximately
addition

to

i

its

Due December 1, 1975

1955
*

I

"

,

Price 10PAX and accrued interest

commercial banking activities, the
firm also conducts an extensive
investment

which
for

approval

the

new

Federal

the

business.1 It
on

Exchange

Stock

country this struggle is

a

CO.

HANSEATIC CORPORATION

oldest and largest private banking
firm
in the United States, with

better

want

HIRSCH

YORK

December 15, 1955.

New York.

American

socialists

CO.

director

a

delphia. After the first of the

capitalism.
exemplified than
.field.-

&

•

NEW

Broth¬

years

of

Institute

Stock

The

BACHE

VAN ALSTYNE, NOEL & CO.

\

in the Philadel¬

Mr. West is

advisory
memberships

in the power

CO.

CO.

Philadelphia Life Insurance

and

men's

recent

manager

phia office.

holds

In this

&,

& CO.

general partner of Gerry
& Co. which became a

partner of Brown

York

I

BECKER

the New York Society for the Pre¬
vention of Cruelty to Children. He

$225,000,000.

Issue

G.

Air Force of¬

an

ficer during World War II. He is
the President and a director of

globe, the great overriding issue,
however^ is between socialism and

nowhere

&

graduf
University, Mr.

Harvard

of

total

The

A.

VVERTHEIM

59 Wall

our

of the

corners

they strive with

as

SONS

forms

people will get better transporta¬
tion

HUTZLER

West

ers
Harriman & Co. on Nov. 1,*
of
1955.
'
transportation more opportunity
Mr. West, who is a graduate of
to compete and to strengthen the
common
carrier system so that Yale University, joined the firm

to

So

INCORPORATLO

visory Committee of which I was

Chairman,

BR05.

/DICK &, MERLE-SMITH

abridge

the

New

the

and

Exchange,

required
of

the

with

The

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

applications
admission

of

partners have been filed.

HALSEY, STUART &, CO. INC.

General partners include David

monopoly. The thought of
private capital venturing into this

G.

field is anathema to them.

Louis Curtis, E. Roland Harriman,

power

is

what

back

of

the

That's

Dixon-Yates

controversy — that's
all
there is to the struggle for Fed¬
power

eral

power

development




on

the

U.

Ackerman, Moreau D. Brown,
S. Senator Prescott S. Bush,

Stephen

Y." Hord, Frederick H.
Kingsbury, Jr., Robert A. Lovett,
Thomas McCance, John B. Mad¬

den, Ray Morris, Harold D. Pen-

with

Krensky & Co., Inc. of

-great

your

H.

connected with

(Special to The Financial Chronicle)

Krensky &

'•

•

ties

derstanding of economic issues.

spur

DETROIT,
B. San¬

Co., Inc., 141 West Jackson Boule-'
BOSTON, Mass. — Gertrude H.
vard, members of the New York Buckley has been aded to the staff

you

disagree with government, in
1 opunion
you
would
serve

you

of

to lead this nation to

urge

Salomon

for good that I entreat you

power

when

except

you.

these

of

appreciation

my

with

grati¬

express

enjoyed with all of
_lt

M.

in

ago

year

is

long years of warm

public respect and be the voice of
appreciation if with equal vigor
business championed all programs
are

honor

great

one

I

express

BOSTON, Mass.—Robert

/(Special to The Financial Chronicle)

Arthur

McNichoIs

formerly

(Special to The Financial Chronicle)

CHICAGO, 111.—Roy S/:'Kear is
with

West

was

Gocdhody Adds

With Salomon Bros.
(Special to The Financial Chronicle)

With Arthur M. Krensky 1

now

15315
He

with;
Paine, Webber, Jackson & Curtis-

Hutzler, 75 Federal Street.
.

Co.,

G.

with

changes.

•.

way

Road:-

born

personal friendships which I have

command great

that

the

for

very

tude

some

of business express

enjoy
devised

DETROIT,
Mich. — Ward
S.
Stahlberger is now with Ashton.
&

Cruttenden & Co.^ 209 South La
Salle Street, members of the New
York
and
Midwest
Stock
Ex¬

who

conclusion, I wish to

my

and

if we
the job and not otherwise;-

work ^tt

this

Too

people

keep, dt^that

can

done

understand

Capitalism

than any system everby the mind of man.:

country
if

of

American

icies

~

system

it

cease

,

prosper—and

to
this

Our

•

I

(Special to The Financial Chronicle)

Wel-

Building.

(Special to The Financial Chronicle)

free enterprise has done more for

your

A.

Corporation, Shirley Savoy Hotel

Joins Cruttenden Staff

sur¬

ideologies else¬

some

Now With Ashton Co.

bourne has become affiliated with
A. & C. Realty and Investment

Co.

earth ranges from

seive

Realty & Inv.

(Special to The Financial Chronicle)

Averell

11

STROUD & COMPANY

NEW YORK HANSEATIC CORPORATION

INCORPORATED

CLAYTON SECURITIES CORPORATION
December 9, 1955

THOMAS & COMPANY

12

The Commercial and Financial Chronicle

(2536)

levels

of

prices.

Why,

ask,

we

should this be so?

Agriculture: Beset With

Connecticut Brevities

Loss of Export Markets Indirectly

The Problems of

Responsible

Plenty

By LOWELL S. IIARDIN*

Livestock

In

Increased

for

'"M-

The directors of Eastern Indus¬

Output

over-simplified

tries,

the

terms,

events

Inc.

and

of

Meter

Neptune

Company, New York, have voted

leading
to
the
present
problems of agricultural plenty
developed thus. Under incentives
of patriotism and profits agricul¬
tural output increased around 25%

agricultural products arising from the current high level of

companies. Stocknolders
will vote early in 1956 on a pro¬
posal to merge on a basis which
will provide a ratio of 10 shares

in the decade of the 1940's.

of Eastern

business activity,

ers

Agricultural

Economist

Lurciuc University

Prof.

Hardin

points out that despite the strong demand for

agricultural prices and income in 1956 are

likely to fall below 1955 levels. Says loss of export markets
nation

rapid

Sees better pros¬
pects for poultry and dairy products. Holds situation shows a
painfully slow process of adjustment in a basic industry, but
concludes, despite severity of the cost-price squeeze today,
agriculture is still in strong financial condition.
today has

two-year supply of wheat.

a

as

agriculture the

ahead,

year

has been increasingly the situa¬

war-torn

ment in

expect some decline in
This is not like¬

tion since Korea, is beset with the

occurs, we

business activity.

Paradoxical

that

plenty should

ly to be

plague a peo¬
ple bent on
higher living

business ac¬
tivity, therefore, assures a strong
demand for the products of Amer¬

standards?

ican

Vigorous

faced by techn

olo

p r

A

general

same

farmers

gically
Not

ogressive

m e

ic

r

a

1956 Agri¬

Likely to Sustain
Prices and

cultural

n

farmers in '56.

Income

tic

tural

farm

is

Even with
economy

horizon

the

boom¬

non-agri¬

ing

cultural

S.

Hardin

sec¬

tors t>f the economy.

It is not

our

purpose now to discuss the general
business situation. It is on the foun¬

dation of the general health of the
total economy,

however, that any.
for agriculture must
be based. While earnings in agri¬
culture as compared to incomes of
non-farm segments of the econo¬
projection

my

have taken divergent paths in

recent years, agriculture is bv no
means the "tail that wags the dog."

Therefore,

discussion of in¬
come prospects for agriculture is
based on the following estimates
of the

We

our

general business situation.*
the

expect

momentum

of

the current business expansion to

the

high level
of business activity and employ¬
ment through at least
the first
carry

at

economy

a

half of 1956.

This is projected on

expectations

of

incomes,
income

a

larger

reduction

taxes,

willingness of

demand, net income of U. S.
operators from farming is

a

and

consumer

in
a

personal
continued

consumers to

high level.

tories

relative to sales

part
♦An

the

of

Business

become

may

1956.

address

Conference

export

spend

burdensome

during the latter

If
by

inven¬

this

along with

Prof.

Bank

Hardin

before

Correspondents

of

First National

29,

1955.

Bank

of

Chicago, Nov.

but

crops,

from

area

pounds,

bushels and tens of food and fiber

production

decreased
relatively
Ingeneous farmers stretched

their

more

fertile

to

acres

previ¬

ously unequalled high yield lev¬
els.
Surplus stocks under govern¬
ownership
rapidly.

What

happened

diverted

from

and

ton

them

loan

or

another

1

probably

to 2%.

be

up

Prices received

will likely average 3 to 5%

change
would

in

farming

mean

incomes

below
with little

levels

1955

average

of

costs.

further drop

a

U.

S.

farm

to

the

East

About

shifted

60%

to the

of

produc¬

tion

of

the

U.

in

By 1955 the produc¬

these
S.

other feed

48%

was

1952.

in
greater than

Their

crops

combined

output

was

This
in net

operators

thing to

farmers.

livestock

They

numbers.

converting

more

started
feed to meat and

livestock products.

in

resulted

millions

more

this

built up

They

Especially this
hogs—over 100

year

and

—

its subsidiaries have
Wallingford and Meri-.

and

in

plants

compared

electronic

miscellaneous
ment.

Neptune

small

meters,

equip¬
liquid

produces

hy¬

and

pumps

draulic equipment.

On

of

30, an underwriting
headed by Putnam & Co.,
100,000 Units of securities
Cuno

The

at

Engineering

$16.50

Unit consisted
Cumulative

share

one

of

$14

Stock

and

stock.

common

stated

a

Each
$1

of

share

one

Preferred

has

preferred

Unit.

per

of

Corpo¬

acquired as a wholly owned sub¬
sidiary Connecticut Filter Corpo¬

compares

with $12 billions in 1954 and $15.8
billions as recently as 1951.

Essentially
outlook

come

that

this

the

strong

for

1956

bolstering

domestic
than

more

price

in¬

and

demand

of

will

a

be

offset

by continued
heavy marketings and big carry¬
stocks of several crops.

ernment

major

price

Gov¬

levels on
also scheduled to

support

crops are

be somewhat lower in the
coming

Agriculture

year.

production
nation

we

to

more
are

is

expanding

consume

—

at

our

move

system,

our

So today, hogs
selling at levels at least 30%

are

Clearly

then,

the
for

wheat has
the

year

market

export

loss

of

cotton

home

come

belt.

corn

ago.

And

our

and

to roost in

the

livestock

industry, particularly swine pro¬
ducers, is feeling the full impact
the

of

and

shift

cotton

in

from

acres

wheat

Ontario,^

80%

mately
volume

iaries

of

derived

are

industrial
from

filters

sales

arette

a

its

and

Cuno

Prices to

Average Below 1955 Levels
Within

ca¬

what is

this

the

framework, Ithen,

price outlook for in¬

Our 1955 crop output is in total
the second largest on record. We

into 1956 with the largest total
supply of feed grains in our na¬
tion's history — some 9%
more
than a year earlier.
Even with
our
large
livestock
population,
go

out of feeds in October, 1956,
likely to be greater than in

carry

is

October,
the

CO., INC.

HA
AX-EXEMPT BONDS

1955.

prospect

about

Roughly, we) face
of having on 'hand

one-fifth

of

a

year's, feed

supply when the 1956 crops ;come
to

market.

Much

governmental

outskirts

of this is

an

and the

general offices.

pany s

of

production facil¬

ware

this

As

com¬

result

a

building,
various
changes in the location of manu¬
facturing
operations
will
take
new

in

subsid¬

from

sales

the

and

of

balance

automobile

of

Dec.

8,

cig¬

1955

of 29

group

a

offered

issue

an

of First and

bank

loans

and

issue
repay

finance

to

of

Refund¬

The proceeds of the
to be used primarily to

the

company's construction program.
During the first 10 months of
1955 a total of about $22 million
was

spent

and

water

on

a

electric, gas
It is anticipated

new

plant.

that

by the end of 1956 an addi¬
tional
$25 million will be ex¬

pended for

new

Emhart
pany

Guest

of

i

*

.

f

Com¬

Company,

shares

Hartford,
exchange of 31,500

an

party

Press."

"Chronicle" editorial staff,

-

Last

Friday night, the former
employees of the "Financial Press"
of New York gathered at

Charley
Restaurant," 67

Carroll's "Antlers
Wall

Street,
York, to

New

of

v""

Alex-

Wilson

the

Edi-

Depart¬

ment

of

the

"Finan

c

ial

Chronicle"

on

his 76th birth¬

day.
Wilson

formerly
of

manager

the "Financial
Press" of New

York,

pub¬

Alexander Wilson

lishers of Van

bond

Dyke's
tables

and

value

the

interest

and

well-known

"In¬

vestor's Pocket Manual," the little

yellow book of stocks and bonds,
from

1920 to 1941.

The

"Antlers

become
Street

and

anniversary

is

completely

25

Dec.

with

Hayden,
their

has

Restaurant"
for

rendezvous

a

Wall

celebrations
booked

up to
parties.
will hold

Christmas

Stone

&

annual

Co.

dinner

the

at

Dec. 20 when 400 of

on

City staff are ex¬
pected to be present. Over 200 of
Merrill

Lynch, Pierce, Fenner &

Beane's

staff

Dec.

party

Traders

stock

members

held

12

will

stock

outstanding

entire

the

gay.

employees of the "Financial
Mr.
Wilson * now; oni*

mer

common

Emhart

of

at

their New York

>

Manufacturing

Silencer

Birthday
honor

given at "The Antlers" by for¬

"Antlers"

has recently acquired Maxim

through
for

plant facilities.
*

*

other

Occasion

on

Of 76th

was

*

pany.
are

company's

Alexander Wilson

Mr.
*

underwriters

the

dine

the

Metal

the

150

the

on

Christmas

a

and

21st

cf

their

besides

control.

which

of

change firm of Cowen & Co. will

about

the

mon

about
will

$31.50

acquisition

operate

about 250

include

a

has

line

subsidiary,

was

wide

and

line

many

of

Silencers

types

of

en¬

In recent years

developed and marketed
of

entertain 150 of their
at

the

Dec.

Stock

York

Ex¬

organization

"Antlers"

Restaurant,

22.

1912, and presently has

gines and outlets.
it

which

New

employees. Its activities

a

guns

as

com¬

involved

Maxim,

$975,000.

formed in

for

for Emhart

a

Paul F. Burns Opens
(Special to The Financial Chronicle)

LOS
Burns

evaporated

ANGELES, Calif.—Paul F.
is

conducting

a

securities

water, pri¬
marily for converting salt water

business from offices at 3306 West

to fresh water.

Sixth

The

acquisition is

Street.

under

Its

man¬

Up until 1955 the price advan¬
of
complying
with
corn
acreage allotments was relatively

tage

NEW YORK

OFFICE:

in

WASHINGTON OFFICE:

40 Wall Street

805 15th Street, N.W.

HAnover 2-5252

District 7-6403




the

Today,

1

however,

commercial

corn

farmers

area

who

Primary Markets in

have

an

average

sup¬

port price of $1.58 per bushel, or
87% of parity. The open market

price of

corn

eastern

corn

in the southern and

belt,
however, is
around $1.00 per bushel. Because

Continued

on

page

136

CHAS. W. SCRANTON & CO.
Members New York Stock

Exchange

CONNECTICUT

r

New Haven

planted within their 1955 acreage
allotments

of

plant which will
estimated $4 million will

agement is an ever-present factor
iri grain pricing.

small.

to

of¬

and

of Maxim. At the current market

ahead?

year

the

on

be used to house

lighters.

to

Farm Commodity

cost

torial

grain sorghum and
other feed grains.

as a

previous

in

below prices of a

increasing

rapidly than

meat is to

more

consumption
price has to give.

suggests

effect

15%

or

into

plans

factory

new

ities for hollow

Canada.
Approxi¬
of the overall sales

Springs,
Conn.
subsidiary with

a

10

This

Company

announced

building

Cuno
plant

in

N, due Dec. 31, 1955, of The Con¬
necticut Light and Power Com¬

billions.

a

if

Silver

Meriden.., The

Stafford

also has

$20,000,000

$10.5

fice

ander

ing Mortgage 3V4% Bonds, Series

to

construct

ration, whose plant is located in

most ^has

products, consumption al¬
to
equal
production.
Storage capacity is quite small. If

if

recently

honor

tural.

farming, after adjustment for in¬
ventory changes, at a level of $10

sheet

machine

and

of

share and the common is
$1 par value.
Cuno, which was
organized in 1912, operates two
plants in Meriden, Conn., and has
per

On

agricul¬

has

Tne

value

net income of farm operators from

perishable

if

International

*

Nov.

ration

*

with

equipped

shop.

Feted

*

*

as a group of 5% or more with a
parity ratio averaging around the
present level of 82. It would place

Now

well

a

fabricating

place

lower

grade beef.

metal

Meriden plants.

more

to

vide to Emhart and its other sub¬

sidiaries

and

*

high-quality

part of Emhart's program of
diversification and will axso pro¬
a

speed

acres

production of cot¬

wheat?

were

City

group,
offered

dividual farm commodities in the

T«
RIPP &

plants in HamNorwalk, Conn.,
and
in Newton,
Mass.
Neptune
has its main plant in New York

accumu¬

one

Marketings will

pacity

the

S.

equivalent over 400 million
billion dollars, bushels of corn.
The
result
is
9%, less in 1955 than in 1954.- much the same as if the corn crops
Total volume of farm marketings were increased
by 14%.
is- up
1% in 1955 while prices
Abundant supplies of available
have averaged 5% lower.
feed
grains
resulted
in
lower
Returns from farming are ex¬
prices. Generous feed supplies at
pected to decline further in 1956. reasonable prices meant
just one

over

at

rapidly expanding
and high level of domes¬
a

running about

Lowell

U.

diverted land

oats, barley.

bright¬
est spot on the
1956 agricul¬

operates

and

den

meters, industrial mixers
specialized pumps, trafficactuated
control equipment and

lost.

was

these

of

acres

tion of feed crops—grain sorghum,

At 1955 Levels

...

The

Eastern

stock.

common

Acreage allotment

of

programs

lated

the

shares of Neptune

six

Products of Eastern include radar

ment

by

paid

Foreign

Common stock for

den, Conn., Mineola, L. I., and
Long Branch,
Ontario, Canada.

time

At

farms.

prices

is the dilemma

in
de¬

recovery

countries.

declined

two

farm

for nonagriculturally produced items will
probably increase modestly.

But such

Yes.

rather

followed

less.

in 1956.

severe

Korean

the

between

merger

a

millions

capital goods and housing

problems of plenty.

price

to

recommend

to

sharply. , Wheat
exports
dropped
by over 50%;
cotton by more than 40%. A home
for the production of around 20

in rate of invest¬

reduction

some

Then

Plann¬

the

of

agricultural

mands

land
For
as

result

a

conflict.

indirectly responsible for increased livestock output, and

are

further

responded

rises

Thursday, December 15,1955

..

.

SECURITIES v.

New York
Hartford

—

—

REctor 2-9377

JAckeon

7-2669

Teletype NH 194

Volume 182

Number 5490

.

.

The Commercial and Financial Chronicle

.

(2537)

the

There

Hay den, Stone & Co,, Members, New York Stock
Exchange

cautious

scrutiny

tional

urges

trust

now.

have

seen

other, bank

or

stocks and insurance stocks
to go

scotch

or

seem

together, like ham
and

and eggs,
When a man

soda.

be

ana¬

lyst with an
insurance
stock

problem

—then the

alyst is

a

widespread are being grouped to¬
gether despite artificial and even

an¬

Bank

natural

when the
inquiry is a

bank

inquiry

worked

anything,
However, today it would
am

vulnerable—"the

Buck stops here."
BANK
are

ranked

are

they
is

its

STOCKS

size by

capital

funds

them, too—to its shareowners. So,
in effect, it owns
nothing.
After
assets

the

sell

you

and

all

off

pay

the

the

valuable.

back in

stock,

and
1937.

at

We

saw

in

total

000) than
the bank

book

value

National City Bank

580

in

more

twice

1929

value,

worth

was

($3,190,000,-

the total assets of

were

those

stocks

same

that

highs

priced at only 15%
about 12 points on the
average,
are

above those highs, and at
only

14

times current earnings. Their av¬
erage yield is now about 4.25%

compared with

2%

back

in

return

a

'37.

They

of about
are

now

priced at only 73% of their 1929
lows, and at only 30% of the highs

of

is

or, as

we

they have

say,

no

money in the bank. They have
been heavy borrowers at the
Fed.
Loan business is

booming. The
authorities have jumped
the rediscount rate four times
this
Reserve

for a total rise of 1 point or
66%%. The current rate of
2%%
is highest since
1934.
Treasury

year

Bills

went

highest

at

since

the

banks

to

2.591

and

have

booked

I

think

to

this

raise

year, and

ual

cases.

mercial
vs.—

year.)
ner

20%

as

(Since
are

are

esti¬

will

go

to

1955 net may go
that of last

over

higher in

Joans

we

our

earnings. What

year

swell 1956 totals.

much

week,

Bank Holiday.
bigger earnings for

mates of this year's

isn't

this

the

All this means

going

some

June
up

individ¬

30,

com¬

$968 million

$81,000,000 at this time last
'53 should, also, be a ban¬

year

earnings-wise

for

the

banks.

now of this

posal does
eration

means

some

not

at

This

will

the

date

should
make

progress

law

is

recodified.

our

present

census.

accepted

esti¬

During the past century and
the

have

a

had

many

banks

of

this country
to adjust their policies
times to conform with dis¬

invention

and

covery

tific

and

scien¬

research.

weathered

They
ravages
of

the

have

eight
major
business depressions, four of them

wars

and

since

1900.

1,077

was

probably in the neighborhood
$100 million, a nice neighbor¬
hood, to be sure.
of

These

at

least

dozen

a

and

new

dollars to

mean

feed

exhaustible

expensive

more

the

banking
banking.

demand

of

a

meant

to

be

a

but

bank

be

credit

needed

in

will

big

continue

pools.

of commercial loans.

Our economy has expanded and

Imminence

times, in varying
Always have our great,

degree.
banks

handled

their

the

loans

ebb

and

and

flow

deposits

ad¬

of

Year-End

for

bank

stocks

and

,

largest banks in the nation 21
them

are

The

cleonics (not to mention satellites
and
satelloids
and
other
Buck

of

Rogers
times).

in New York State.

State

is

divided

branch

districts,
counties.

each

'

into

nine

containing

District

No.

abracadabra

modern

new

advanced

equipment in these

fields

into

run.

nomical

instance, includes the counties

ple,

submarine

of

Kings,

said to have cost

astro¬

proportions.

for

Queens,

Nassau

1,

and

number

can

Banker"

the

For exam¬
"Nautilus" is

as

much

as

73.0

the

on

Index

up

This-advertisement
'*

is -not,

for

securities

of
NEW

sale,

and
or

such

as

is

under

■

offer

an

securities.

circumstances-to

no

to

buy,

or

offering

The

is

as

a

That would

at

72,

be

made

tional

Manhattan

Corn

at

City at

Trust at

53

construed

of

as,

an

on

to

buy,

of

these

any

only by- the Prospectus.
December

.

15, 1955

$2,000,000

Daitch

Crystal Dairies, Inc.

4V2% Convertible Subordinated Debentures
Dated December 1, 1955

Due December

Price

they are against, I think, banks
buying other banks by the use of
inflated market price of common

1, 1975

100% and Accrued Interest

stock

instead

value.

With that I

of

by
am

true

Copies of the Prospectus
the

be obtained within

may

undersigned and others

as

may

any

State only from

such of

lawfully offer these securities in such State.

book

in complete

Hirsch & Co.

agreement.

Speaking generally, bank shares
one of the soundest
securities
in today's market. It is
my belief
that a great many good values are

bigger

banks

needed to meet that demand.
i




are

We

Equitable Securities Corporation

Baxter, Williams & Co.

are

to

be

M. M. Freeman &

Co., Inc.

Ira Haupt & Co.

found

today, in these de¬
fense-type equities.
And
by good values I mean
bank
are

stocks

the

prices

of

which

low in relation to

sets,

book

within

value

the

terms.

I

earning as¬
and
earnings

definitions

like to see,

of

This

advertisement

appears

as

a

and

value,

much

book

above

a

in

nature

record

only.

These

Notes

will

value

and

a

Daitch

and

these

are

Crystal Dairies, Inc.
4V2% Notes

National City Bank, when it
pur¬
chased the old First National Bank
of New York,
paid for it at the
rate

of

note

10

about
a

gross

times

earnings

HIRSCH

net

earnings,
total of $165 million. But

those

There

times
22

commercial

December

ratios.

are

still

more

banks in

issued

$1,000,000

merely guide posts I have set up.
I might add,
though, that, speak¬
ing of price-earnings ratios, the

and

be

than 14,000
this land of

15,

1955

in

installments

place these Notes privately through the undersigned,

market not

price-earnings ratio not above 15
to 1.
Such things are, of
"course,
elastic

of

public offering is being madp.

those

assets of about ten or
dollars for every single dol¬

lar of market

no

for instance,

earning
more

matter

and arrangements have been made to

&

CO.

56,

70, Manufacturers
Even at current

offering

an

offer

at

Vz, First Na¬

95, etc.

Continued

ISSUE

one

about

Bankers Trust

mean

Chase

Chemical

$29

solicitation

"Ameri¬

to

80.0 by the middle of next month.
,

Cost of

,

of

dex

such;

as

a

is the best half marketwise

year

think the authori¬

against mergers

Rally

We know that the last half of

thetoJast
;
justed themselves to reflect the month of the year sees increased
banking figures for New
myriad business transactions that activity on the upside.
State are impressive.
They crossed their counters.
There is almost always a yearare, of course, by far the
largest
The
system
has
often
been end
of the 48.
At the end of
rally from about Dec. 15
1954, called
upon, on rather short order,
for example, the total asset
through about Jan. 5-10. Not once
fig¬ to make decisions
entailing many in the past 22
ures for all New York State
years has this failed
banks
millions of dollars to finance new
of
all
to take place, to my knowledge!
kinds, at $60,691,867,000,
industries. Bankers had to learn,
was equivalent to
26% of the na¬
Now, barring some unusual de¬
for instance, about the automo¬
tional total of $235 billion.
velopments in stock prices gen¬
bile, the airplane, and more re¬
New York has three times the
erally, I expect a year-end rally
cently,
jet
propulsion
and
its
amount
of
in the N. Y. C. bank issues that
assets
possessed
by ramifications.
Now
they are
banks in the next
should take them up by about
largest State, studying hard at such
things "as
California.. In capital funds, its
10% from these levels of say in¬
electronics, memonics and neu-

that each merger
proposal will be
the individual study it de¬
are

to

think

Total

given

I don't

I

the outlook is for continued
strong
demand at high rates in the field

Mooney, too, has indicated

serves.

scientific

York

a

general

more

The capital markets will
supply
goodly part of the needed funds

We

to

and

seemingly in¬

research.

contracted many

as

the Long Island
banking picture was directed at
3 or 4 small banks down there
and

ties

the

"Gadgets"

half

regards

not

of the last

as

of

country.

States.

My feeling is that the recent
ruling by the Comptroller of Cur¬

was

9%

mate of 165 million for the whole

system

County

as

of

is
supposed to have cost
than $32
million, also with¬
out its nuclear reactor.
The total
cost of these two "Sea-monsters"

should

or

probably be resolved

of inter County

rency

County

wolf"

more

merger pro¬

change

in

may go from
of infra

is

million without its power
reactor,
or furnace.
And, the newer "Sea-

preclude reconsid¬
later

a

now

14,741,445

as

This

institutions.
The State
is also the home of 129 of
the 527
mutual
savings
banks
in
the

several

made

This

Population of the State is given

branch offices operated
by the 693

United

District.

Erie is in the Ninth District.

different

modification of departmental
pol¬
icy advisable."

paying

Bigger loan demand from busi¬
ness

were

City is

including

County is the

instance, 340 na¬
banks, 343 State banks and
companies, and 10 others,
as
private banks, facilities,
There

District,

Sound Values

strapped for

reserves

over

noteworthy that Super¬

approval

that year.

I don't have to tell
you men
that interest rates are
up all along
the line. Banks are

as

attempts have been

it

Mr.

averaged 25 times earnings at the
or

whether

see

alone, then $2,200,000,000. proclamation.

Today,
1937

and

when

good bank stocks sell at 25 times

earnings

being

to date

County Trust
Co. downstate succeed in
crossing

left,

Now, in a going, profitable bank¬
ing business, those equity shares
very

is

up

friends

our

studies

deposits,

get what is
the equity in the
business.

be

interesting to

not

or

circumstances

salable

proprietors

can

bring it

they intendent Mooney has stated; "dis¬

how much

bank has, really,
and it* owes

a

will be

Tw©

corporations,

in

All

owe.

to

over

the Hudson from Westchester
to the
"Jersey side."

economic institutions.

other

in 40 years,

Banking Law

with

to

Banks

State

our

etc.

New York

Second

Third

in

existing conditions in the
is an insur¬
banking field. It is my guess that
ance expert.
numerous changes will be
made,
You see, it i§
resulting in wider and more lib¬
pretty hard to eral interpretation of branch ex¬
banks have about 29% of the na¬
pin
us
down pansion
among other things.
It tional
total.
Of
the
first .100

Robert S. Burns

Unlike

boundaries.

Now, the first time

analyst

—the

appear that I

ones.
over

will be fewer banks but they will
be better banks. Old
concepts are
changing
as
trade
areas
once

man;

rule.-

big

.furor

mer¬

going to
Despite the

are

monopoly on
comes
to a the part of some
people, we are
bank and in- going to have more
mergers. There
surance

as a

more

recent

king-size

think there

I

gers.

few

a

207

last year, .116
119 in '52.

were

The State had a total of
693
banks of all kinds at Dec.
31, 1954.
There were for

such

For some reason

Suffolk, L. I.
the

Staten Island (Richmond) and the
Bronx. Westchester

practiced.

values.

shares,

in

will

however, the State, with its great
resources, provides a
back-drop
for every type of
banking activity

basis of earnings and book value; and as
related to past market valuations.
Expects year-end rally. Con¬
sidering insurance stocks, maintains fire and casualty shares
should sell nearer their much higher-than-market book
insurance

here

Mergers

that,

on

life

them

It is not
surprising
of course, when we
consider New
York City,
chief money market
of the world.
Aside from

Burns, in considering investment merits of bank stocks,
points to economic necessity for bigger
institutions, as by
merger.
Maintains bank shares constitute soundest securities

in

of

State.

Empire State.

Mr.

Citing sensational advances

700

'53, and
Banking is big business in the

By ROBERT S. BURNS*

today's market

Empire

take out nationwide about 250
this
year, greatest number since 1931.

And Insurance Shares

in

about

ours,

The Outlook (or Bank

13

page

138

14

The Commercial and Financial Chronicle

(2538)

conduct

Legal Aspects of SEC's Woik

dealers

on

capital,

of
books and
records,
hypothecation of customers' secu¬

rities,

does

well

with
the

the

SEC has

conflict with

into

come

other

lished
middle

by

the

1930's

power

in

Congress
in

govern¬

When
ficient

violation

a

granted

by

state

of

inter¬

the

for-

and

i g n

c o m-

merce

clause

e

of the Consti¬

tution

ulate

to

reg¬

new

is¬

sues

securities

where
m a

i 1

s

t

e r s

t

a

foreign

t

e

fa¬

shares.

The

net

were

$10.3 billion.

Commission

is

bipartisan

an

agency

importance to

or

to

Senate

term

One

expires each

functions

quasi-j

Procedurally,

confirmation, for five-

terms.

year

ministrative

Commissioner's

permitting
continuity
despite
year

serves

u

on

d i

i

matters"

in

the

justify the

alleging

registration

before

the

Commission

is

of

1946

that

of

from

different

too

Congressional Commitstaff,

a

tee. The Commission and its

itself

the staff

The

case.

becomes
in

and

insu-

prosecuting

in

staff

what

presents

describe

the

as

tion side" of the

dence

standards. Before adopting
rule or rule revision, tne
generally
promulgates it merely as a proposal for

Commission

public
tional

before

case

are
sent to
the Banking and Currency Com¬
mittee of the Senate and the In-

the

Commission

mission

take

may

the

into

account

principle of ju-.
dicial
notice, it only considers
t. e
formal
evidentiary
record
made
in
the
hearing,
together
legal

Eecause the

be-,

volume of work

rule

changes

terstate and Foreign Commerce
Committee of the House so that
these Committees, charged with
observing the work of the Commission under the Legislative Reorganization Act of 1946, will be
advised of the steps proposed to

with the briefs and arguments, in
arriving at its final decision.

A

For informacopies of pro-

comment.
purposes,

posed

and, except for matters the Comunder

new

a

followed at this hearing,
then briefs and argues

are

staff

the

the Commission

light of its experience in
light of tne statu-

and in the

tory

you

"prosecu-

to the hear-.

case

ing examiner and the rules of eviThe

the

for

of rules. These

revisions

or

examined by

are

the

recommendations

submit

rules

charge of

cases

The

,

held

or,

prosecution of the

might

deficiencies

statement.

Act

case.

additional

hearing

Procedure

not

manner

that the decisional func-

developingand

of

1

evidentiary

,

latcd from

responsibilities.
the
Commission

a

been carefully conRule-Making Proc
by the Bar over years -V Procedurally,, ixi rule-making i"
Procedures were/established* the Commission
proceeds in a

Commission

the parties a "statement

of

full

c

change Act.

problems

,

of suf¬

functions

ex-

pressed in that section of the Ex-

have

assure

and

-

bringing proceedings,

quasi-juuicial

com¬

of five members, each ap¬
pointed by the President, subject

are

the

inde¬

posed

com-

merce

1954

pendent

in-

of

of

The

the
or

cilities

is

the Commission is aided be taken. Written comments are
cause
there would not
be timeby'a special staff group known-received from the public over a.
regulate trad¬ changes in the national Adminis-. for the
Commission to sit on all- as the Office *of
Opinion Writing, period of weeks or months.
J.Sinclair Armstrong
ing in securi- tration. Under the law no more
cases, before a hearing examiner,
The lawyers in this office, whose
It has been the policy of the
t i e s on
n athan three of the five Commis¬ a
legal record is made, t.ie case function is comparable to that of
ticnal securities exchanges, that
Commission in
the past several
sioners may be of the same po¬ is briefed and
argued before the law clerks of the Federal judges,
is all major stock exchanges. The
years that there shall be a public
litical party. The Commission has Commission
and the Commission
help the Commission in analyzing hearing on all major rule changes,
statutes were revised in the late
administrative
responsibility,
it then makes findings cf fact and records and
drafting findings of For example, in the past two
1930's to grant more specific juris¬ has
quasi-judicial responsibility, conclusions
of
law
and
either fact and conclusions of law.
In weeks the Commission has comdiction in the field of regulation
and
it
has
responsibility
for suspends the effectiveness of the the
day to day operations of the pieted public hearings on its proof the over-the-counter markets
adopting rules and regulations registration statement or not, de-:
Commission* the Opinion Writing poSed revisions of the proxy rules,
in
securities.
Also, there
was
under
the
acts
it
administers, pending on the findings it makes- Cffice is isolated from the
oper- and 0n its proposed revisions of
added special and detailed regu¬ some of
which are quasi-legisla¬ which are based
upon the record- ating
divisions and offices, and^the regulations pertaining to islatory authority with respect to tive in nature.
in
made
the
proceedings.
This- the
trust indentures,
personnel
cf
the.
corporate reor¬
.Opi'nion> sues 0f email size under the conorder is appealable to a.Court of
Writing Office take professional' ditional exemption in the Securiganization under, the Bankruptcy.
Functions of the SEC
Appeals
of
the
United
States. pric e in
avoiding contact with the ties Act for offerings not in exAct, public utility holding com¬
Let me give you a few exam¬
Proceedings under the Exchange investigatory
a n d
prosecutory cess of $300,003,
panies, investment companies and ples of these different functions
>w
Act are similar.
The Commission- staff of the Commission.
investment advisers.
The
juris¬ of the agency. First, in the ad¬ has the
/
The Commission also considers
authority under this Act
diction
is
broad
and
extensive ministrative
field,
a
principal to revoke the registration of a
SEC Rule-Making <
testimony , thgt may have been
and its indirect economic
impact function of the Commission is to broker-dealer.
■ given
before, and discussions and
This is a drastic
Se.-much for administrative and *
large.;
examine
t
that may have been had
registration, statements power.
j. ■ quasi-juaicial functions.
Let me
The amount of new issues of
relating to new issues of securi¬
0/made by Congressional Cornsay a few words about rule-makcorporate
securities
registered ties to assure compliance with the
The Duality of Functions
;
0r-their members on the
with the Commission under the
ing and how this may be in some
statutory standards and Commis¬
When the Commission is
faj
t rfatter to ^hich lhe rule
sitting cases quasi-legislative in nature.
Securities
Act
for
sale to
the sion rules for fair disclosure of
alns
We . are
to decide whether or
considering,
not.the reg¬ The fact that tne Commission may
public in interstate commerce in the facts about the
h f j u
t
ouc revisions in
issuing com¬ istration of a broker or dealer in be said in a
1954 was $9.6 billion and in the
legal
pany
and
the
sence,to exer-:th
securities
t
the records of
being securities, should be revoked, it c.se
first nine months of 1955 $10.1
quasi-legislative
authority
registered.
If
the
the hearings held by a Subcomregistration has
great
responsibility to the
billion.
The, market value and statement appears on its face to
public interest. • It cannot help
which
volume of all shares traded on meet
doing anytning wmch derogates mittee of the Senate Banking and
the
requirements, it is per¬ but we aware that a judgment from the
Currency Committee on the subnational
securities exchanges in mitted
Congressional legislative
by the Commission to be¬ adverse to the
t
and the hearings
broker-dealer will power.
1954
was
Just the opposite is tae
$28.1 billion and 990 come
effective, thus allowing the deprive that person and
Subc0mmittee of the
possibly
million
shares and in the first securities
to
be
sold.
Another his employees of their
House
Interstate
and
Foreign
means of
nine months of 1955 $29.3 billion
example
of
our
administrative a
araby the areaa ln of ■ Commerce Committee on the
a
livelihood.
The
grounds
on
regulation
Congress
function is our
f
♦An address by Chairman
activity in en¬ which a revocation may be or¬ interstate
'penny
speculative
Armstrong
and foreign commerce
"
before the Chicago Bar
stocks.
Association, Chi¬ forcing the various provisions of dered are clearly
specified in the in which the Congress has rec¬
cago, HI.
the Exchange Act
regarding the statute. In practice the most im¬
ognized that complications were
Relations With Other Branches
used

v

end

of corpo¬

rate

million

940

occurs

:

accordance

in

all

—

lions of the administrative agen- Congressional Committees,
ind^cy are kept completely separate vidual Senators and Congressmen,
from
those of
the
investigation and the public generally, develop

utility assets of the public utility^ the Commission are
brought into
holding companies subject to our
play.
For example/ under
the
jurisdiction at the end of 1954 Securities
Act, if a registration
were
$12.0
billion
representing statement docs not
appear to com¬
about 20% of the total privately
ply with Uhe full disclosure/or
owned public utility business in
anti-fraud provisions of the Act,
the
United
States
and
the net
the Ccmmission has power to in¬
assets
of
investment
companies stitute a
stop-order proceeding.
subject to our jurisdiction at the This
immediately adds to our ad¬

the

exercise

the

and

estab¬

was

members

.

presents

to

of

conduct

the

of floor traders and tne like.

Commission

Commission

and

quirements

with the statutory standards

before the passage of the Admin-

exchanges with respect to sucn
things as short selling, activities

mental authorities.
The

the

to

in

in

istrative

of

derogate from the Congressional legislative power.
Describes the rule-making procedure and rfecites cases in
not

which

regard

involved

body of regula-

a

known as the proxy rules,
which it sets forth specific re-

tion,

The

proceeding is based
sitting in judgment on

facts

past.

distributions, as
many rules in effect

exchanges

functions

has established

of

perpe-

sidered

with

the

as

revocation
fraud

customers.

a

then

which

stabilizing of prices lin

connection

of

which

and

requirements, the
against
manipulation

their

on

agency's developing the facts

those

margin

provisions
and fraud,

regulation of the interstate market in secu¬
the duality of functions involved in; the

agency's developing the facts on which a proceeding is based
and then sitting in judgment on those facts. Takes up also
the quasi-legislative function of "rule making," and holds this

the

the

keeping

Armstrong, in discussing the position of the Securi¬

Exchange Commission in the Federal Government and

mentions

is

maintenance of minimum

rities,

\

for

broker-dealers

trated

duality

its functions in the
y

portant ground

exchanges,

require compliance with
many statutory and rule provisions
such
concerning
things as
the

By J. SINCLAIR ARMSTRONG*

ties and

and

brokers

which

Chairman, Securities and Exchange Commission

Chairman

of

and national securities

Thursday, December 15,1955

..

.

and

to

considerable

great,

.

-

.

,

.

~

,

•»

,

...

.«

.

.

..

ricrncltls

/oxies

.

Jheld b/a

lh,et;e

.

_

.

so

great, need for swift action

so

great, need for flexibility was
great, that the Congress estab-

so

,

This is under
or

as

an

no

offer

circumstances

to

buy,

or as a

to

be construed

solicitation of

as

lished

offering of these securities for sale,
offer to buy, any of such securities.

an

,

the very

those

.

w

independent

an

was

,

for

agencies

cf delegating to
powers which
in

purpose

agencies

tact

if

47,900 Shares

thS

familiar^with the
establishment of

the Interstate Commerce Commis-

Company

te first of the great adrmmstra-

Common Stock
par

CongresT'Cfor
congress
tor

value)

purpos^ Tele

this
u.is

parpos-

l

e -

Securities and Exchange Commission

There

simi.ar.

is

provisions

tne

in

are

many

statutes

the

the

$57,625

per

administers

Commission

t.he

,~LV1I+„

power

to

make rules and regulations. How¬

Share

ever,

the
.

which

rules
,

pursuant

to

accordance

,

,

,

,

,

statute
witn

made

are

must

be

The purposes of these in-.
is to determine

djbns

vestigations

whetber. the-acts

P"*" with^nd
tions

lead

-

i e*a}Vpie'A1TJ
Exchange Act,

tu

the




1955

broad

Commission

of

ux

the

t'"e

to

...

from

HUiii

securities wmch

tional

r-

Contoress

power

solicitation

piuax^
proxies

the

langu.age gives the

-----

V

I

to

December 9,

very

securities

by
the
ttrc

are

any

make
*

holders
Iiuxuwa

listed

1

person

on

of

administrative

to

resub jn indictments and criminal

With

respect

to

securities law violations, the Com¬
mission

has

similar

to

t

t

st/utes

function

a

that

of

Bureau

of

which

Investigation

other
We

Federal

havej
agencies,

is

Federal

the

with

criminal

like
other
regarded

investigation files as not open
pUt>xic> as making public
fiioc umnin cprinnslv
investigation files would seriously
and indeed migni make
impair,
ana
inaeea
might ma^e
our

tQ

:„,ro„iirtofion

impossible, effective investigative
work.

ux

However,

every

now

and

.

problems
F

&

na-

a

develop,

....

For

exchanges. Over

-the past 20 years the Commission

com-

investiga¬

.

Government

m

being

are

many

proceedings before the Commisinjunctive proceedings in
lhe
Fed/al Courts and some

in

statutory stand-

ards.

Smith, Barney & Co.

of

branches

other

,0

prosecutions.

.

Commission-

Price

junctions

it

^Jou ar«
hiStbry of

(No

relationship as
an
independent
performing
executive

Congress could exercise itself
Government. For example, in its
wis.ied
to, but which are
administrative capacity the Cornbetter exercised
by administramission has broad powers under
tive agencies.
the statutes to conduct investiga-

NOT A NEW ISSUE

Southern Pacific

of the Government

«

Occasionally the Commission is
faced with problems involving its

example, this past year in

private

law suit to

which

the

yolumet182

Number 5490

was

not

district

xiles

the

as

tion

a

of

result

party, a
attempted

certain

of

it

transactions

an

was

burden of
preparing the registration statement and are as

helpful

data

possible in suggesting whatever
may be needed by way of additional information if the
registra¬

in

the

of

statement, as filed, is not
entirely complete. But the Corn-

law

seriously considering

public

interest

involved

the

Commission

+V.O+

nuhlii

.

held

.

General

to

the

Counsel

tempt of court

be

in

and sentenced him

the

Circuit

held

power

that

vested

the

CommlsSon
termini th£ would3^e to
the^

'DuWih^intere^^^
order
sel

against
set
sei

was
was

The

"

•

Oppncinnniiv

Cnmmitteef

in

Of

wtinnq

Pnn

their

under

fortunate

which

rases

in

We

have

working

are

or

in

been

out

the

furnishing to Congressional Committees

of

a way as not to
impair our
law enforcement work.
1

The

good

relationships

*

which

result

from

and
of

objectives of the
the

law

Commission

in

will conclude by

a

importance,

if

assumption

Qre

have
Presidents

field.

by

members

full

We

-

aohieve

been

?

ment

of

the

in

representing issuers
and underwriters, and others-who
before

come

the

helpful not

Commission,

are

only

to their clients
but to the Commission in achiev-

ing

conformity

disclosure

and

of

sions

the

example,
ments

cases

today

require

the

by

Tiled

little

staff

of

in

our

the

many

comment

or no

Corporation Finance.

state-

Division

forth

the

wone

/•
.

J.

.u«r

m

Doian

Robert

M.

Hall

statements

importance
the

Acts

of

by

compliance

those

on

with

whom

a

to

number of recent

have

the
the
with

fact

forgotten
that

and

writers, and
mission.
the

staff

It

with

not
the

with

the
the

an

States.

honor

Press

run

report carefully and the questions

no

Cer-

other

Secretary has

of .Grover
the

Cleveland's

throat.

only

This

was

few weeks ago, made

a

a
it

couple
as

of

one

a

career

of

years

of the

that

he

ago

accom-

unique and

answers

of

the

interview

had

sue-

been

been made to the President before
because the doctors thought he

was

moving too fast back into his

routine activities.

•

the

case

*

of

It

was

very or-

tfinary advice from doctors to a
patient.
There was found to.be
no
"significant" enlargement of
his heart, the scar seemed to be

healing
pected.

as fast as
Then why

this nature by
The

answer

might
a

be

ex-

statement of

part

of

to the

for

Dolan,-Jr., has

been in the

since

joined

1928.

He

„

1946 and has
of the

Jan.

San

1,

the

New Hampshire
primary of
mid-March. The ticket would have
be

entered
this

gates

to

New

or

mid-February.
Adams

Hampshire's

the Republican

Convention
runs

by

plan

whether

not.

Senator

Com-

the function

to lie

in the

ijcan party leaders,
There is not

a

wouldn't like to
ru.n

they

again.
.

one
see

His

of them who
the President

decision

to

run,

unanimously

remove

a

agree,
would
lot of their worries and

secrehY-uncertainties.
'"7 "
' Eisenhower'^
But the concern with

rewrite registration statements.
Our staff is
ready to assist those
who
in
good faith .assume the

in that

Eisenhower

Bridges,, one of the

most

influential leaders of the
Senate,,
Chairman of the
Republican Pol¬
icy Committee, a man who has
served

as - Governor
of his state
and who is now in
his fourth term
as

Senator, having got an increas¬
ing majority every time he
ran,

doesn't want to sit
idly by and be
out in the cold
by aiiy such,

left

shenanigans

this.

as

He

any

the

office

has been
make his
the New

national

campaign for
quite understand¬

but

ably he expects to have
something

to say about whom the
nominee
should be if it is not
Eisenhower.

Significantly, the President's
tors, both of them

Biyth

This is under

President's aide, have pre¬
cluded any decision on Eisenhow¬
er's part before the New
Hamp¬
shire filing -date.
I can't escape
the feeling their statement in
this

-

.

some

of

instance

political.

was

beqrn Sales Manager

.

-

jn

^955

he

was

named

of

in

capacity he stm

which

the

Sales

Portland

said

about

health.; He
works

is

late

the

President's

Dewey

DALLAS, Tex.—Texas

F

T,

,

things

are

able to

pretty

much

fit.

bui/,,or

as a

as an
ofJering oj these Securities for sale,
solicitation oj an ojjer to buy, any oj such Securities.
ojjer is made only by means oj the Prospectus.

or as an

ojjer to

580,000 SHARES

LeCUNO OIL CORPORATION

office
serves.

CAPITAL STOCK
(PAR VALUE TEN CENTS PER SHARE)

& West-

,

.

,

"^.nce'J1,?8 be^n forme<^
at 6115 Denton Drive

PRICE $7.00 PER SHARE

e"gag6 in a securities business,

JJorton J. Koval
1 e llrm-

is a principal of
Copies of the Prospectus may be obtained from such of the undersigned as may legally
ojjer these Securities in compliance with the securities laws oj the respective states.

Spector, Levine Branch
CHEVY CHASE,
Levine and
a

Md.—Spector,

Company has opened

office

at

2314

Colston

Drlve under the diction
ney

*

o-j

of Sid-

Spector.

Eastman, Dillon & Co.

Bell & Beckwith Partner
TOLEDO,

Ohio—Bell

&

First California

New York Stock Ex/Change,
Jan<

1

Mouen

.

WiH

to

admit

Grafton

partnership.

Hayden, Stone &. Co.

Company

Carl jML. Loeb, TVlioades & Co.

Beck-

with, 234 Erie Street, members of

ties

Paine, Whether, Jackson & Curtis

On

M.

man.

He

closely with Adams and the

two of them

see

a

NEW ISSUE

Texas & Western Finance
-

*

tremendous vantage
point of just
should and what shouldn't

be

In 1947 he became

Manager

'

what

capacity,

^ad 0£ ^
municipal department
and

.

The

Hall, who is Sales Manager
the Portiand office, joined

Biyth in 1933.

-

-

Hagerty, because of the Presi¬
dent's illness, has moved
into a

circumstances to be construed

no

in

Francisco office since
He will continue

doc¬

army men, one

the

mm

Mr>

1

Appeal of the United States Securiand Exchange Commission and
WiJliam
H.
Timbers, Its
General
Counsel
(C. A. 6, No. 12, 503, Oct.
19, 1955).

dele¬

National

manipu¬
as

they

heart attack, there was a-delay of fhese leaders is that if he
decides
In a contest between
Bridges
only a few hours beforg-the rear hot to~'run, the
Dewey faction and Adams in New
Hampshire,
nature of his
illness was made
along with the Palace Guard are without
Eisenhower's
interven¬
public, and ^ Hagerty is generally trying to bring about a situation
tion, it is my conviction Bridges
the credit .among news^ where the man of their choice would win hands down.

of
to

could

-

1954.

rests

under-

Sherman.

President,

Eisenhower ticket in

.

the doctors?
seems

situation
which
the
President's
illness has created among
Repub-

of those to arrange the

in San Francisco

seem

Commission




to

as

could 'dr "would

an

the

overlooked

statement

is not

of

cases

responsibility

registration
them

or

and

investment field

legal responsibility rests. Compa¬
nies proposing to issue securities
in

enter

basis for

is
by recent

up

,

Mr.

'

filed

are

headlines

decision

a

or

everything

and

the

on

some

that

,

Charles R. Biyth. President
Chief Executive Officer.

the

clear recognition of the

a

Bargeron

to

There

untjl mid-February, if not
later., \7"v I
1
"./ Now, If you read the doctors'

■

of

cited

7 In

Unfortunately sometimes

registration
without

was

House

cessful

of

to the

of

eWs p ape r

tp ;make

and

.

_

statutes.

Carlisle

United

tne

plishments

pertinent-facts

administration

Hospital.

;ia^ain'

The skill of

fully and concisely is vital
effective

of

White

and

lawyers in assisting their clients
to-set

able

rwhether'he

You might
he took, the place of the Pres-

:

proyi- of
for

under

Hag-

them and last

died

fair

Just

registration

•'.are

Act

Securities

the

statutes.

the

that

with

anti-fraud

for
examinations

on the doctors! report that
'he had been ordered to slow
down,
and also/ that he would not. be

kept completely quiet and, indeed,
it is doubtful
if it is generally
known yet. His Secretary at the
lime, John Lincoln O'Brien, who

authortty.^eneranp5speak!

changes,

n

ma¬

President's

asking that the President
Saturday night dhe famous Grid- which they had with
reporters, intentions known
before
iron Society paid him the unusual there was not the
slightest occa-

| ;it known

activity on the " work - of
lawyers representing

ex-

medical
Reed

to

'

given

up

Adams, Assistant

control

yb&sed

-tors generally,

handling

responsible

tered brokers and dealers and

of

Walter

followed

as

edi^'

Up until that Saturday the reVice-' ports on the President's illness had
investment been in sharp contrast to the news

law enforce¬

latory
ing, those lawyers who participate
in the preparation of
registration
statements, in representing regis-

series

iat

"PortVandl

responsibility in I
dependent in

our

d,

the

la

-

up

the

on

activity

to

^closedj the • President • came
Washington/ from Gettysburg

o

s

received.

are

phase of

ef

entirely

were

feeling

last
Saturday, significantly iUnder
When the stock market was

)a day

eiected

oj/ihq

every

But

n

e n t s

e a s e

were

cancer

effectiveness, of the

Bar of their

the

to

pi

r

tainly. it

Francisco,

work^jafV

js

laws

d

e

iaent

emphasizing,!

securities

the

p o n

w

say

administering

its maximum

i

not

to him.

Eisenhower, the

They
their

papermen for
having made the
decision to make it
frankly known
to the public.
The story is that
the decision was left

g

n

plaudits from

•*::P

the

i

z

these ^reports."
The Washington corre-.

com-

the^iield

Commission in

a

frankness

Hh^ that. Jim

with respect
commerce .in securi¬
..

the

of

Congress

ties.
I

under

enforcement

to, interstate

the

appreciative

sense

Arthur J. Dolan, San

mutual recognition
by the Committees and the Commission of the

basic

investigations

and" Robert M?'Hall "of

.

Committees

has

Two Vise-Presidents

the Commission has with the Con-'
gress

politics

made the honor guest.

in such

*

the

year,

Biyth & Go. Names

information

requested

of

see

Dewey

,

information '

mvestieation

litigat^n

actual

Droner

legislative

est

rent

a^ut nakfculir
nendine

vLv

the

lot

a

on

either

presently under consideration and tribute of having him as the honor
Hampshire filing date on Feb. 14.
sion for the alarmist statements
Senator Knowland of
we; urge the legal profession to guest at. their closed winter din- which
California
made
for
the headlines.
has been
Sive us their best efforts, their ner. Under the Gridiron's new
demanding that he make
Questioning by newspapermen them
known even earlier. He has
backing--and support as we en- practice, the winter dinner is con- elicited the
response
there was indicated
deavor totulfill our responsibili- fined primarily to the members
very clearly that if the
nothing new in the "slow down"
President isn't a candidate he will
ties in administering the Federal themselves with only a few out- orders. There was
nothing the be.
securities laWk
standing• outside guests.
Under doctors found on
Saturday to
It is doubtful that
these circumstances,
Bridges would
Hagerty was prompt these orders.
They, had make

ional

p r

of

us about
many
important - rule
changes
made during the
past few years or

+

^

—

mis-

have taken time to write

.

Relationships With Congressional
Committees

expect

now

reports

erty, the White
ments submitted by lawyers en House Press,.
Jts rule , revision : program.' We Secretary, had
have been greatly aided by some received many
members of this Association who

:

the

.

.

and

beginning

many care£ul and thoughtful

de-

Coun-

?

'

false

the

calendar

several

real

contempt

General

our

aside

be

.way with respect to a number of
other registration
statements. *
'
'
Th
Commission^ in "a vp™

Federal

may

the

lh

instituted'* eight
stop order proceedings and ;S

such

^rrpSthTr^L^nUtndnrod,^

paoerswhere

to

Since

present

-has

judicial

the

in

face

Commission

Appeals, and the
Appeals for the Sixth

we

too bad, but from

is

a.m

its

the

Court of
of

of the News

registration statement appeals

leading.

days in jail. Naturally, the
Commission appealed the
ruling
to

com-

-It

,

run

brother.

By CARLISLE BARGERON

or ignored, the disclosstandards of the law or where

0n

con-

60

Court

to

fancy they

to

neuvers

Milton

on,'the President's
health. * Up until last
Saturday
there had been

ure

dis-r -the

Commission's
to

proceedings in
which the issuer

.ply with,

forcing

make,

order

cases in
underwriter refused

and

The District
of

til

for
for the purpose

stop

those

+
to

Commission

closure,

mence

..

adverse to the
the
disclose

+
interest

Conrt
Court

the

f

Wo

public

to

determined

.

Washington

Ahead

mission's
policy
in
the
public
interest and for the protection of
investors, is immediately to com-

in

making its investigative files public,

From

tion

15

will be the nominee
and they will
still be in the
driver's seat. They
hear talk and

as

investiga-

making

involved

After

the

The Commercial and
Financial Chronicle

,

Commission had in its

which

suit.

a

court

possession
which

.

(2539)

Commission
Federal

.

Dscember 15, 1955.

Piper, Jaffray & Hopwood

The Commercial and
16

Financial Chronicle

...

Thursday, December 15,1955

(2540)

Corp., for instance, sell¬

wood

The Economic Scene

THE MARKET... AND YOU

And the Look Ahead

By WALLACE

Stocks

Stanford University

continued

around in

forecasts of favorable economic
conditions ahead, Prof. Kreps calls attention to variables
which may create soft spots in the economy, such as: (1)
cleavage in the price structure; (2) business investment; (3)
inexperienced consumers in a buyer's market; (4) over-full
employment, and (5) over-optimism. Approves predictions by
J. Frederick Dewhurst and associates as to economic growth

After commenting on the many

ion

list

Whatever

tries.

publisher

and

editor

tinguished

getting started on the
yearend rally yet.
Conversely, what selling as¬
saults came along failed to
make any more than tempo¬
rary dents so the worst that

public

were,

Week,"

seem

Mr.
Bell,

in

No¬

and

issue

ments.

the

vember

"There

states:

is

hardly

cloud

the

sky

and

ship

sails

before

on

fair

a

wind that will

surely

last

and

perhaps

dent of Lionel

D. Edie

zied

investment counsellors,
predicts: "Gross National Product

were

More

ures.

4%—a rate of growth less than
10% experienced in 1955 but nor¬

were

larger

more

hours

rations were

up

work

of

less."

for

trial

per

week,

meeting

Commerce

Department's

Business Advisory
characterized 1956 as a
year for retail sales, busi¬
ness investment outlays and em¬
ployment.

Council,

record

There

are

for

sons

tically
the

bullishness.

the

instrument

Eisenhower

Since

at

President

office

took

on

board

operating

economy

levels.

record

rea¬

Prac¬

measuring device

every

economic

shows

valid

numerous,

such

in

Janu¬

of 1953, that is from the first
quarter of 1953 to the third quar¬

ary

ter of

uct

1955, Gross National Prod¬

has

increased over 9%, per¬
consumption expenditures
10%, gross private domestic

sonal
over

investment

over

Government

purchases

services

and

sixth.

third.

a

have

This

has

Federal

of

goods

declined

been

by

war

Total

personal
about

creased

taxes only

buying

from

8%

but

in¬

personal

have

power

$1,565 to $1,647

or

risen

5%.

over

Corporate profits both before and
after

taxes

prices

have

third

to

and

by

record

new

American

stock

jumped

economic

market

about
levels

a

in

history.

In

September, average weekly
earnings in manufacturing indus¬
tries

hit

high of $77.90.
Nonagricultural employment also
hit
000

a

a

new

record

more

50,300,000,

some

100,-

than in September, 1953.

They produced a record industrial
output which according to meas¬
urements

of

the

Federal

Reserve

Board in September, amounted to

141%

of 1947-49 levels compared

'

'11

\

penetration is still
new peak was
a
mere
35
cents
above
the
487.45 achieved on Sept. 23
before the weekend of the
Presidential heart attack.
valid
The

134%

in

There

records

Nor

That the list was

Wilcox, Combustion Engi¬

neering, and even General
Dynamics partly for this rea¬
son too, are among those that
get the occasional plays.

bound

' '

l

r

forecasts

the

r'

and in the spe¬

the current demand holds up

cific actions of various institu¬

until

chips

up

*An

address

24th Annual

ago,

80,000

fewer

by

Prof.

National

Kreps

Conference

at
the
of Con¬

trollers Institute of America, Los Augeles.

Cal.




the

when

next

offering is

are

be

scared

*

*

of this

indication

An

new

be the issues
This economy should make new
reaching new highs — United
records every year. Since Presi¬
Electric Coal, Gabriel, Gen¬
dent Eisenhower took office, pop¬

Merely

by

persons

million

2l/z
the

increased

has

ulation

about eral

per

year.

Royal McBee,

Cigar,

Interchemi-

give each newcomer
cal, Seiberling Rubber,
quantum of $1,800 of
and
income
of
goods
and York Air Brake,

to

same

enjoyed

requires

on

the average

a

dour

dynamic nation

standstill

a

in

its

re¬

living

An increase of but 2%

standards.

New
even

Benguet Mining which more
than not has had the

increase in national times
billion a year.

an

income of nearly $5

fuses

might

Gardner Denver,

paid by the fund before.
pears
rather prominent on
Up to September only $4,200,- several of the list of "second¬
000 had been realized in gains
ary" issues that might be
on investments and the divi¬
favored if this group is going
dend payout came to some
to have its day in the lime¬
$11,700,000. The nine-month
light. Auto-Lite sold above
report showed $18,500,000 of
$80 in 1946 and currently is
holdings sold against pur¬ in the 40s. In fact, its peak
chases of a negligible $178,price this year was below the
875. How much further liqui¬
best of 1947, 1948, 1951, 1952
dation has been going on in
and 1953.
the current quarter will have
Yearend Rally Ahead?
to
wait
on
the company's

ever

to now.
*

twist

distinction of being the

lowest-priced issue
Stock Exchange.

annual report.

the

on

*

There is still a
*

that

belief

*

the

widespread

list

will still

yearend rally to
a
year means another $6 billion.
Aircrafts Rise
highly optimistic but gener¬ keep up the tradition. A rath¬
Thus if the economy continues
er heavy load
of tax selling
to function effectively, each year
As far as the individual ally hedged with enough
had to be cleaned up this
will ordinarily show new record
stock groups are concerned, qualifications to make it seem
levels of output, sales, employ¬
the aircrafts
were
able to that the second half of next year, unlike the situation a
ment, and real income.

Yearend forecasts were

all

muster

a

Consumer

year ago, but the indications
as one of the better- year is somewhat cloudy.
There is general agreement were that it is beginning to
acting' ones around. Douglas,
ahead even during substantial re¬
that the good business cur¬ dry up. Once that is out of the
Boeing, North American
cessions. Moreover a new bulging
Aviation
and
General Dy¬ rently will spill over into the way, the list could get back to
$4-8,000 income group is throng¬
first quarter for certain and the
ing
into
housing
and durable namics were able to post good
job of trying to make new
goods
markets,
"trading
up," gains with more ease than the probably into the second
highs with a bit more convic¬
reaching for quality homes, lux¬
rest, making even the action quarter as well.
tion.
ury
cars,
and superior recrea¬
outlays for rent, personal services,
and
nondurables
will
march

stand out

,

tional and cultural equipment and

only

be

to

stitute

a

records

New

facilities.

expected,

are

they

not

in

this

in

American

*

The

*

The

.

con¬

living

somewhat se¬

group

lective.

continuation of the great

explosion

fruits

of

been

years

of

middle

the

as a

recent
new high

about.

has been the most

production

two

*

*

*

able to re¬

definite stirring tional investors. Some rather month

was

in

to

anything

been

have

factor

standards that

The

1953.

i c"

somewhat remote. Babcock &

old

*

*

*

*

above-average yields of

secondary issues, most of
pattern of indus¬ which have been able to boost
the

trials

showing better stability profits for good comparisons
produc¬
tivity of labor likewise reached eloquent refutation of Communist than the rails was back again. this year, plus the fact that
a
new
high in September. Em¬ dialectics in history.
However, the fact that the in¬ they are available at any¬
ployers required
500,000 fewer
Spearheading this expansion in dustrial
average was able to where
workers
in
manufacturing than the
up to 50%
discounts
with

o m

away

Secondaries Waking Up

which,

counters

business trends.

Moreover,

has

"a t

so-called

The

come

dominant

the

services

purposes.

income

j

Flings in the Atomics

were

persistent in backing

rather

the housing tracts, and

retail

the

national

4%, so that per capita
incomes in dollars of

disposable
1954

other

or

at

to

on

rooms,

a

boom, not one based on govern¬
ment ladling out of extra billions
for

things

civilian

a

and

lately.

the secondary issues large blocks of prime issues tentatively slated. The theory
result, were out¬ were steadily being marketed, is that such a huge demand
performing the market. If it and U. S. & Foreign Securi¬ will spill over into the foreign
Worry Only When New Record
is maintained, it will be a new ties, while refusing to discuss
Ford companies already pub¬
Highs Are Not Reached
to have these issues specific liquidations, agreed licly held, and spark the
Table I shows the facts in de¬ phase
heaVy sales from the shares of even Ford's rivals.
tail.
The outstanding fact that finally joining in on the bull that
emerges
is that consumers and market that was concentrated portfolio enabled a yearend
Of incidental note is the fact
their behavior in the auto show¬
so
closely on only the blue dividend far above anything that Electric Auto-Lite ap¬

of

creasing prosperity.

S.

managed sustained gains.

these harbingers
forecast in¬ among

prices—all

economists and industrialists, at a

U.

achievement

trial

the indus¬

acquired thereby,
hovering around $35

new

of

orders

increased

Springs, Va., 28 leading

August,

paperboard
containers and higher indus¬

mal, substantial growth neverthe¬

the

up on

has been

independent climb that has pretty much over now the big coming public offering of
Motor
stock. This
been going on for weeks now. question is where from here. Ford
of January,
1951. The issue was the best-acting
record-setting stock offering
Some Fund Liquidation
fewer business fail¬
with a value approaching half
one
for last month when it
new business corpo¬
Some definite signs of cau¬
added better than 54%
in
a billion dollars is certain to
being formed. There
tion were cropping up, both in
be an instantaneous sellout if
machine tool orders, value, a 23-point jump.

height

There

will be about $400 billion, up 4%
and industrial production will be

of

perk

credit

tax

the all-time fren¬

under

fraction

and Com¬

pany,

At Hot

failed to

the

totaled $29 million, just a

orders

Allyn P. Evans, Presi¬

In

ahead.

weather

into

even

quarter-

a

century peak two weeks
ahead of the industrials,

all

despite

,

well into 1956

Mr.

reached

yet,

merger romance of its deal
with Alex Smith and the fat

so
In the motors it was Studestrongly and so
rapidly to erase all the baker-Packard that was able
damage in only a couple of to lift its heels on good, al¬
months was good testimony
though not too persistent, de¬
Warren, in particular, put a of underlying strength. The mand. Chrysler was inclined
power output and freight carloadcouple of fat gains together heavy flow of good dividends to lag. For the automotive
ings.
Practically all the business ba¬ for a better than 10-point im¬ obviously was a prime factor group generally, a lot of hope
rometers,
likewise,
show
fair
provement in continuing its in the rebound, but with it revolves around the forth¬

a

the

in

sues

r

The

which

was a

peacetime peak levels in Those that turned the trick
the third
quarter of 1955 were fared
very well, notably
also reached in department store
Ritter Co., General Railway
sales, retail sales, especially out¬
lays for autos and parts, construc¬ Signal and Warren Foundry
tion
outlays,
consumer
credit, which rushed into new high
business
loans,
furniture ship¬
territory on multi-point gains.
ments, steel, coal,
and electric

Banker"

gage

state

in

happen¬

rail average,

stance.

word—se¬ moot.

worn

New

of "The Mort¬

1957."

*

*

*

That much

in pro¬ lective—had to be trotted out
service enterprises,
and local govern¬ again as only a handful of is¬

and

fessional

achieved almost as a

from the top, including stocks occasionally have a
three losing sessions in a row. fling
despite the fact that
*
*
❖
concrete earnings
said of the market
from the
atomic energy work are still
it was a stalemate.
Whether the industrial peak

in the distributive trades,

Elliott V.

Kreps

that

was

been found

of "Business

Theodore J.

was

jobs there

new

have

to

uncertain fash¬

an

traditional

indus¬

construction

and

utility,

dis¬

The

bullish.

unanimously

mill

clearcut indication that the

workers could be

miners, and 100,000 fewer
each
in
the
transport,

economic

the

of

"bursting out all over,"

to

generally this week with

no

trends in next five years.

are

Carpet sold at $70 in the last
decade

Economics

Graduate School of Business,

Appraisals

lately available around $18,
sold at above $39. Mohawk

STREETE

KREPS*

By THEODORE J.
Professor of Business

scene

ing below $40 currently was
above $80 in 1946. J. I. Case,

the

Last

ye^r

and sales of the
technology has
industry.

modern

automobile
more

new

Continued

on

cars

page

were

149

post an all-time record peak from their
highs of the last
late last week
in the way

and

the

of

generated little

new

feat,

in

enthusiasm decade, made the field
fact,

was

ful

one

for

picking.

a

fruit¬

Under¬

[The
article
time

not

"Chronicle."
as

expressed in this

views
do

necessarily at any
those of the

with

coincide

They

those of the

are

Walston Adds to
(Special to The Financial

STOCKTON,
Cruz has
of

m

a

Staff

Chronicle)

Calif.—Gilbert S.

been added to the

Walston

titl

presented

author only.]

&

ttamm

Co., Inc.,

staff

137 East

Number 5490

Volume 182

.

ing decline in yields on nonmort- praisal of proposed houses were
gage
investments improved the more
than
double
the
largest
competitive position of mortgages monthly total in the three pregenerally
in financial markets, ceding years. Applications to FHA

quarter was

Moreover, the flow of savings to

for

In

financial institutions

Monetaiy Policy and

houses' also

The Real Estate Mazhets

reached

vestors were reduced.

policy and real estate markets over the
Finds influence of credit conditions on mort¬
gage markets and home building is difficult to trace, but
claims the restrictive monetary policy does not give an

new

considerably

changed demand and

writing became much more readily available, with both FHA and
VA
loans
selling in secondary

been adequate for housing demands.

a record $392 billion
(seasonally adjusted annual rate)
and a further large increase is in¬

the

for

dicated

quarter.

current

October, industrial production
continued at the new high estab¬
lished in September and

nonagrirecord

cultural employment was a

for any

October.
economic de¬
the past year
expansion

The most striking

.

velopments
have

over

the

been

marked

in consumer buying, especially of
through the end of the year, with durable goods, renewed rise in
monthly totals in the last quarter business outlays for fixed capi¬
the largest for any comparable tal, and the relatively moderate
month on record. The substantially nature of inventory accumulation.
larger volume of units started in Since output in many areas is now
the second half of 1954 compared close to capacity, further increases
with the like period of 1953 re- in production will necessarily be
fleeted chiefly a more than doub--at a slower pace and growth in

continuing decline in yields on
competitive investments, funds for
mortgages with Federal
under-

adequate explanation of reduced levels of housing starts,
from consumer and

and

previous

Reflecting the upsurge in prebuilding
activity,
new
private
housing starts beginning in June
1954 increased
contra-seasonally

sup¬

By that time, with slackening in
other demands for credit and a

and holds the volume of investable funds

summer

of 1954 than in

autumn

ply situation in financial markets
began to be reflected significantly
in mortgage markets late in 19o3.

the monetary

on

comparable periods.

The

broad responsibilities of the Federal Reserve
and monetary conditions, Chairman Martin dis¬

business savings has not

insurance

higher levels in the

past few years.

:

mortgage

rapidly wljile issues of corporate securities available to in-

In outlining the

cusses

increas-

was

ing

By WILLIAM McC. MARTIN, JR.*

Chairman, Board of Governors, Federal Reserve System

for credit

17

(2541)

Commercial and Financial Chronicle
The

.

.

markets at prices close to par, and ling in units started under VA consumption and investment deinterest rates on conventional guarantee. Units started under mantis will need to be correspondsibility for formulating and carry- because of the complexity of these loans reduced by % to %%. In-. pjjA financing arrangements also ineiv moderated
ing out national credit and markets, the impact of credit and vestors began actively to seek inprp__, dijrhtlv whilp
y moaeraiea*
the many other factors are always at
work. It is clear, however, that

placed

Reserve

on

System

has

Congress

Federal

respon-

rnnvPn

policies.

The

dollar.

re¬

relative

the

to

reflecting different
well

as

activities

of

particular proconsumer groups.!
The

or

To

local

to

change
change

mav
may

to

investment

actions

do

so.

Th-

a

from
trom

-

,

.

credit

mortga«p

ori,

existing
properties aid not occur until the
second half of 1954. In that period
completed

newly

total

and

mortgage lending was one-,
than in the preced-

lourth larger

de-'

gains In

in? <**

teaa^ o£ both "new and existing houses.

mortgages R, ,
increasingly availto time'
to time, GI loans were increasingly avail-

time
time

able

Partf "ete[®Stv/rate^0°r"
.

n0..down,

borrowers with

tQ

payment

rree 10 vary more
are rates on the

influence most ine lalier are
directly the lending and investing widely than
activities
of
commercial banks, former.
System's

dif-

w.McC.Martin, Jr.. mands.; The relative attractiveness

over-all credit

ducer

as

regional economic de-

situation, not to markets for par-, <*
aeraW
ticular goods and services or to 6aSes ana ^nvenuonai
the

lenders who earlier did
not engage in such activity began

considerable
extent, the development of Feder¬
ally underwritten mortgages has,
served to reduce regional differ¬
ences
in the supply of savings

netary

lates

are

variadevelop among geo-

structures

velopment.

This

for credit and
o

commodities

dustrial

been

have

the

ferences in

responsibility
m

supplies, wholesale prices of in¬

new

as

and many

market

the

conditions

well

as

half of 1954 and continued strong, rising considerably since mid-year,

mortgage markets

graphic areas

stable
for

old

limited

tions usually

maintenance
a

of

upon

local in important respects,

growth and to

value

Sales

houses accelerated in the second

f

of ex¬

pressures

demands

increasing volume toward the end
0f 1953 and rose sharply in 1954,

: Because

economic

of

,

Reflecting the

tionally financed starts declined, panding

Commitments by lenders

earlier.

Mortgage Markets and Lenders

to

stainable

s u

considerably.

varies

System's
ob¬
jective is to
contribute

participants therein

sectors and on

increased slightly, while conven-

mortgages on terms which they
would not have granted six months

polipy on their different

monetary

monetary

maturities' of

and

.

30

—™
and other types of mort¬

„
years,

gage

on

12

middle of

the

substantiallv

*

houses

more

with the increases more recently

In

1955.

months ending June

extending

were

ucts and finished

SUDStan"ally ; more houses were
s0ld tban dur!nS preceding cornparable periods. Reflecting the

ereagg

units

in

with

shown

favorable terms.

signs of edging up,

The situation is not

VA-

tate

fifths

of

house

sales.,

the

in

increase

existing

omy

\-r \

that

es¬

these

longer period. Since
•

„

recovery m

the general econ-

began more than a year ago,

activities

revolving
and

struction
,

a

*
6
the

.

j

...

house sales and nearly two-

except

markets,

most two-thirds of the increase in str0ng for
t......

i,

greatly dif¬

ferent in construction and real

guaranteed mortgages in the^year

new

prod¬

goods. Consumer

stable for two years, have recently

1954, the in-

sold

to

prices, which have been relatively

impact of easing terms in the GI
loan market during

intermediate

1955,

loans were also readily avail¬

able

.

through

real

The Current Situation

continued

high

about

estate,

con¬

which

throughout

the

This summer and autumn ecoThe effects of changes in credit
Mortgage lending on residential
1953-54 recession, have expanded
individuals or businesses. These and
monetary policy
normally properties expanded sharply in n0mic
activity in most lines has
sharply further and are now at
operations
of
the
commercial take some time to permeate a the first half of 1955 to an allmun Pmcc
banks, in turn, influence other market as complex and variable time high of almost $14 billion, been at new high levels. The G
Continued on page 20
financial institutions and markets, as
the ' mortgage market.
They The volume of GI loans made on National Product in the third

which

supply the credit used by

economic developthe System is

The general

rnents

with

which

primarily concerned are the result
activities

combined

of

the

of

markets that make up the
The System must keep
informed constantly about

many

may be

Paiticularly slow to influ-

.

„..„

houses

economy.

itself

these particular
make

to

markets

in

order
de¬
and

judgments and to
appropriate credit

termine
-

Response to the Subcommittee's

about the influence
monetary policy

inquiry

and

credit

considered

be

must

of
on

housing markets
against this

and

mortgage

background. As these are specific

markets, the influence of credit
and monetary policies upon them
is

For

.

example, from mid-1952 to

J?r cTedl* Passed up°n ^^^d'
tbougii growing, credit availabill}?arK? *esultedE? S0P®
°£
fmancial mar^te. Expansion of
real, estate mortgage debt waajestrained at the' Start of this Period
by tbe selective regulation of real

fst?te £onf
of

J™

tuo

and Real Estate

Monetary Policy

Markets Over the Past Few Years
amount

of

that

housing

be built, sold, and financed
within any period depends upon

conventional

credit

on

new

number

De-

considerations.

of

for

mand

housing

depends

on

growth and shifts in families and
other

occupants,

factors,
dividual

sources

price

upon

and upon ability of inbuyers to finance their

purchases. It
the
physical

also depends upon
availability of re-

construction

for

of

new

building materials,
places definite
the amount of housing
be added to the supply

homes—land,
and

labor.

limits

that

on

can

Act

This

any short period of time.
capacity of the economy to
finance home purchases must also
be considered. The availability of
funds for investment in mortgages

within
The

£uj|

major
gage

influences on the mort.
market; during this period.

®agea

,

increase

underwritten m rt-

int'rest^rates

became

inium interest rates oecame

less

$50,000,000

Quebec Hydro-Electric
Commission
VA% Debentures,
Dated

Series N
Due

January 1, 1956

change

lending

on

new

two-fifths of the

Guaranteed

existing
Meanwhile, FHA-insured

loans lllttUC
iuaua made

these

in

over

in

increase
houses.

,.Ho„

^

December 14, 1955

January 1,1981

amounted to over two-thirds of
houses and

.

of these securities.

any

records for nearly

new

all types of mortgage lending were
established. The ready acceptance
by investors of VA-guaranteed
loang on terms favorabie to borrowers anxj the accumulation of a
large backlog of commitments by
iending institutions, to take mortSa§es in the future, stand out as

the

Federally

solicitation of offers to buy

only by the Prospectus.

ending June

year

J.952' but
A™\

nor a

NEW ISSUE

1954

Qf

^he

por

Increase in the voiume 0f Va loans

Sepjte™b®.r»

may

a

offer to sell

$900

over

houses and other new structures,
was
suspemded
in

rnortgages continued until Ap

an

The offering is made

fo^netsmuckcgnig/md

period.

latlon X' governing the extension

indirect.

The

and tne cnanging circumstances or

each

This advertisement is neither

million, rejfly
tlecting chief'y a libera
a liberalization of
termg ma(je possible by the Housto

mid-1953 large over-all demands 39^ 1955,

policies.

monetary

bouses rose markedly to over

new

f^ce construction, tor instance, it ^ billion, the largest total by far
tbe amount of financing commu- |or any
year>
jn the same
jnents by lending institutions is periocj there was a sharp rise in
lar®e;_ cannot Ere"
m? g..,.
FHA-insured loans on
existing
events
be foreseen in view

lending

as to

principal and interest by

PROVINCE OF

houses during
UUxju6

new
ilcvv

on
U1|

unconditionally

on

QUEBEC

(Canada)

months showed little

12

the

from

attractive to investors in a mar°f gen6rally rising yields, and
were salable only at discounts
from par. GI loans on new houses,
particular, declined markedly
during the year ending June 1953
arid were a much smaller proport°f total mortgage lending
than in comparable earlier periods,
Conventional mortgage lending
meanwhile increased substantially,
although such loans were generally available to borrowers only

^ons

two

preceding

12-month periods.

Housing Markets
The

chase

influence
on

\s

home
even

of

credit

condi-

Price 99.50% and accrued interest

building and purmore

difficult

to

{.race than that on mortgage mar-

j^ets, particularly as far as the
timing of changes is concerned,

there was little deresidential construction

por exampje

cljne

in

activity

as

a

Copies of the Prospectus
writers

may

be obtained from any of the several under¬

only in States in which such underwriters

dealers in securities and in which the

Prospectus

qualified to act as
legally be distributed.

are

may

result of the credit
of 1953.

stringency in the spring

at higher interest rates and on Subsequently, there was consid¬
6
depends on the flow of savings, on more restrictive terms than had erable lag in the adjustment of
alternative opportunities for in- been the case prior to selective residential market activity to the
vesting funds, and on credit and credit
regulation and general change toward easier credit avail¬
capital market conditions gener- credit restraint.
ability which began around midaUy
Interest rates on Federally un- 1953. The number of housing units
Residential building and home derwritten mortgages were raised started through the first half of
purchases are strongly influenced in May 1953. Shortly afterwards, 1954 was bttle different from comby the availability and terms of the slackening of other credit de— rxornhip npriods in nrecedinff years
credit. The nature of this influ- mands, the easing in credit and
not
ence
is
easy
to trace, for
onetary policy, and the result- -ng activity did not begin to move

The First Boston

A. E. Ames & Co.

Corporation

Incorporated

Harriman

Smith, Barney & Co.

Ripley & Co.

Incorporated

The Dominion Securities Corporation

Wood,Gundy&Co.,!nc. McLeod, Young,Weir,Incorporated

ow4

by Chairman Martin on
behalf of the Board of Governors of the
Federal Reserve System before the Sub¬
committee on
Housing, Senate Banking
*A

and

statement

Currency

Committee.




1 The

influence
exercised
(Regulathe market for reg-

System's only direct
a
particular
market
is
-ough
margin
requirements
ns

T

^red

and

U)

stocks.

in

upward

until

thereafter

rose

early

1954,

rapidly.

By

gust, requests by builders to
Veterans Administration for

but

Blyth & Co., Inc.

Lehman Brothers

Bell, Gouinlock & Company

Salomon Bros. & Hutzler

Mills, Spence & Co. Inc.

White, Weld & Co.

Nesbitt, Thomson and Company, Inc.

Incorporated

Bums Bros. & Denton,

Inc.

Greenshields & Co (N.Y.) Inc

Harris &

Partners Limited, Inc.i

Au¬

the
ap-

W. C. Pitfield &

Co., Inc.

Dawson, Hannaford Inc.

18

The Commercial and Financial Chronicle

(2542)

organization—I

Organized Labor's Economic Creed

ganizations
For

Labor leader maintains labor expects

"understanding" above

all else from management,

great area of common

based

on

Declares labor likes
investment earnings profits.

our

free enterprise system
States despite centralized

agreement.
with

in

a
If I

what

of

to

were

from

give

a

expects

labor

think

I

I could per¬
in one word and

management,

haps

it

wrap

up

movement

union

mind,

the federa¬

into

have

the trade

is in

which there

on

I

can

feel that labor

ous

vari¬

be coordination between

trades.

standing."
and

here

this

country

tion

really, that
they can take
a

rate

titude

about,

a

of

certainly
ducive

little

a

Labor

like

tell

to

of

Organizations. Actually, the struc¬
ture of the new merged federation
is

duplication

a

structures

the

of

of

existed
up

until Dec. 5.

The

organizations
s.

.

.'li}.

which

distinct,

and
its

own

each

address

try,

of work

that

have

made

been

you

of

speak of tremendous power in

the

hands

should
power

*An

unions

do

go

by .Mr. Meany before the

be

of

few

a

some

idea

there

men,

of what the

could be used for

or

what

it would be used for, and I

submit

the head

of this

Indus¬

that

New York City, Dec. 9, 1955.

Hitler

agreements, but those
minority.
Of course,
there are area or nation¬

where

the

men

at

GOB SHOPS of AMERICA, Inc.
299,000 Shares of Common Stock

Germany.

if

Wagner Act.

I

it

true, Hut

And I

going to concede per¬
Act went

am

the Wagner

that

haps

too far one way, just as I think
the Taft-Hartley Act goes too far

to

power

the

was

protested,

we

organized

Committee

Liberties

before

Con-

in those years preceding the
enactment of the Wagner Act. And
gress

will find it was because mil¬

you
a

boycott against the importation of
to the usefulness of this Nazi goods.
We. organized the

as

lions

millions of American
denied their right

upon

citizens

were

cases

.Labor,Chest to take care of the

agreemen'.—that is most

of

type

have

they

where

find

we

in which tney
organized from the
management side in about' the
same way as the union is organthe

that

industry

is

operate

i

~

^

^

^

x,-.

^

„

parallel between the rise cf Naz-

ized.

ism tn Germany and the fact that
make- their own decisions as to Isbor was in the depths of a very,
collective
bargaining;1 they lay very bad depression from which
down their own conditions. Some 1^,^a.^or was^going to^ survive^ at
Now the other unions,

of the national
have

11ump
right

u
a

imvf

of

course,

unions, of course,
...
to

.....
tell

. ,.c
the

local

AUCCll

—«strike

or

that,

if they do go on

they lose certain benefits
normally would come to
I don't- know of any of

strike,

of

the

order

labor was at an all-time low
at the time.

can

per

Share

strike in deadvice from

The

Company is engaged in six States in the
sporting goods, camping
equipment; men's and boys' work and play
clothing and shoes through five specialized re¬
tail stores and a chain of over thirty franchised
stores owned by independent
operators.
Its
principal offices, showrooms and warehouse are
at 5 Carpenter Street, Pawtucket, Rhode Island.

be obtained from

the

your own

undersigned.

•

UNDERWRITER:

BRUNS, N0RDEMAN & GO.
Members of New York Stock Exchange and
Other Principal Exchanges
NEW

YORK

5, NEW YORK

Telephone: BOwling Green 9-6900

and cf course it can be very, very
successfully refuted by the record,
that not only

labor

but

Nazism,

25% of Workers
Belong to Unions
another
about

statement
this

there

in

has

being

what

facing today. We are gointo a so-called industrial

the

the
and

movement

on

this

of

contrary,

Nazism

long

don't

I

anything about it,
too much — I

know
.....

.

.

^chines

Tt

it

ahnilt
ho...

_.orric,

nn,'

nn1v

to manufacture the tre.

th®

)hi

nfe
«»t we need ancI tt.at we can use
we

can

^

got machines to run the
that manufacture those

have now
machines

Of course, the next thing

things.
~

w{fh.

0

JLmnp

+n

T

Lnnfar-

?up:ose'
_ma,;hi?e t0^a^.£!F
ture consumers to buy the things
that

the

machine

machine
can

Threat

before

rs

a

that

runs

the

manufacture.

poly, you think in terms of controls, controlling the supply of a
certain
percentage
of
articles,
And
I
submit
that
under
this

many> a*oiaS with h*s Italian PjV*nfr an(* the Japanese group that
afterwards come to cooperate with
them.
We have a tremendous vital interest in the maintenance of a free
way of life and we feel that the
employer has that same interest.
Here we are in the city of New
York, a labor meeting, an employrr's mpptim*. unde^ t^p bPr,£%f^ rf
the National Association of Manufacturers, saying what we want
to say, not only about each other,
but saying what we want to say
abcut our government, criticizing
different departments, completely
free, knowing full well that we
are not going to land in a concentration camp or going to face

From

However, that

re-

wc) hnMly got into a• war
suit of the rise of Hit.Vr in Ger-

charge of monopoly: Number one,
less
than
25%
of the
working

,

and the men¬

long,

monopoly, and of course when you
are
speaking in terms of mono-

structure it cannot be a successful

and

country that called atten¬

tion to the dangers
ace

a

sarsjasn taw
claims to know

no sym-

American labor was the one force

Less Than

made

were

pathetic connections between
American

^

sale and distribution of

that there was some connection
between American labor and Nazism, and of course that is com-

They do have pletely ridiculous on the face of it,

or

* v

in8

to refuse benefi s, alter
structure of a union

an

that

in

it

Now let's look forward to

it could go and it would be up, be-

-rjs

benefit

if the union goes on

find

we aYe

international union
a
right to tell a union
go no strike for certain

conditions.

can

picture

Dre^v

1

all, it would be the only way that

any

has

Now

Offering Price: $1.00

information

record; an(J u ,g nQt g very> yery

So I just want to mention this
them.
sort of criticism to show that there
these
40-odd
thousand cases .of is just no foundation, because the
individaul union doings—I don't implication in this statement is
which

been




develop-

the

have associations such as you
have and such as we have now.
victims of Nazi tyranny wno had They were denied their rights by
these area or nationwide airee- fled to our shores and to other a superior economic power in the
ments, it is because of the * fact countries. And we c'id everything hands of their employers who

years

(Par Value $.30 per Share)

<•

that's

came

We

the international office.

STREET

in

did

itry

Labor's Fight Against Nazism

agreements—and I am sure
you know this has been a ^subject
of controversy for a number of

fiance of

WALL

of the Wagner Act. Eut I think
in all honesty we have got to look

American Federation of Labor,

wide

the right

52

skeptical about the idea

very, very

were true, it would be a coincidence, because you can see fr^m
the record, if you care to examine
the record, that the one g.xmp in
this country who saw a danger and

the

in

are

wage,

or

of

think

nationwide

it should

may

to

say

the other way now. But the point
i3j why did government come in?
ployers, some of them, of course,
Well, you can find out very, very
with associations of employers. I a distinct menace to our way of easily. You can find it in volume
woluld say that perhaps the other life in what was happening in after volume of the record of the
20,000-odd are tied into area or Nazi Germany in 1933 when testimony in the files of the Civil

that

broker

cou

time

of

son t

employers, with various em-

the

know

Offering Circular

this

Nazism

He

ment

on

These 68,000 unions that i

strike?

.

affairs and is

NAM's 60th Congress of American

or

lodges in the hands of a few men,
presumably the officers at the
head of this organization. .'When

v

unions, each of which is

runs

workers have ab¬
hope of improving

merged federation and
about the tremendous power that

comprises 140 national and inter¬

separate

de¬
the

about this

present combined structure

national

rope

a

organization that was so

an

statements

Organizations which

separate

as

siart

around

how

Now,

to

want

coo

American Fed¬

eration of Labor and the Congress
of Industrial

experience with that type

no

I

at the record and ascertain just
why the government stepped in in
to increase its membership such a way as they did in the
in

labor

that

of power.

and

frankly that we
don't
like the idea of a government to
be deeply into the question of
labor-management relations. I, for
cne, and a great many more, were

you very

.

separate

the

no

from

Congress of Industrial

and

of power people have in
should get another
President, because I

for

has

possible to alert the American hired spies to go into their unions,
people to the dangers and the hired "all "sorts "of people to premenace that lay in the rise of a vent the unionization of their
poorly put together, an organiza¬
dictatorship in Germany.
The workers, denying them the right
tion that was not tied together by
ized, and they feel of necessity record of American labor has been of freedom of association one way
any rigid rules and regulations.
that they must deal through col- consistent on all types of dictator- or another.
Now the reason I stress this type
lective bargaining with the em- ship, whether they were from the
Now I am not going into details
of
structure
at
this time is to
ployer, and- in the same manner right or from the left, so I do not
' that ^xcenU can s^av that who~4c
ir,
thic
en_ooiiori
on tnat, excepi i can say inat wnocomment briefly on some of the 'L ...uLt.'
in which the employer is organ- see
anything in this so-called ever wants to read or desires this

you

Federation

that

their condition of life

the structure

about

American

the

of

dicating

solutely

better

would

I

Now

to

designation of course, he was in¬

and con¬
labor-manage¬

helpful

be

to

was

likened

contemptuous
applied
to

Lenin, the Russian dictator back
in 1922, in which, in giving this

could

relations.

ment

just

objectives

and

aims

its

George Meany

of

and

this

American Federation of Labor by

union move¬
ment

been

scription

trade

the

has

sand;

ture

greater
understanding

of

alone, there were 44,000 sepa¬
and
distinct
local
unions

holding in some membership some
15 million of us.' Now this struc¬

different at¬

that

affiliation

in

68,000 separate and distinct local
unions. In the American Federa¬

little,

so

have

unions

tional

c o m m o n

and

strike

speak of,. I would say that about
40,000 plus have separate and distir.ct individual agreements with

Unions

These 140 national and interna¬

much

so

Local

68,000

in

ment

l n

a

_

manage¬

have

ran

they

fellow

out what¬

carry

there

work

ever

tied

never

had anything to do
picket line. So if that is

a

the type

is

I

never

with

order to

in

tion

"unde r-

say

which

been saiil b,y a
gentlemen, I bfeLeve, who wasiorrr-erly associated with the National
Association of Manufacturers a
few days a^o that it is significant
that tne rise of labor in this ovntry paralleled the rise of Nazism
in Germany. Well, that may be
an historical factor.
It may be
it

Tnen,

life, I never ordered any-.
else to run a strike in my

life,

completely autonomous, and each
of

life,

tribution,

score.

my

one

much greater threat.

short answer

my

in

power

j

We know that management ingenuity and resourcefulness have
made their contribution, but we
feel that we have made our con-

and I never went on strike

power

of AFL-C10, combined union has no right to tell anyone
to go on strike. Says, with automation, we are today facing a
so-called industrial revolution, but that the Kremlin constitutes

\

built

against the peoP*e> against the community -at
large, bo there is no fear, I tnink,
c* ine charge of monopoly on that

tremendous

such

has

that

tion

have

we

up

your neighbors,

power

no

that

system

the standards of life of the
American worker. We may take
nothing away from managment.

instance,

lutely

union

tne

on

ground that a general
strike was a rebellion against ihe
government, a rebellion against

they have ab^oto tell anyone
to go on strike. And it may interest you
to know that I am the
Fresident of this great organiza

1

has., been 'entirely tend that through the free trade

this

veiy sample

Or-

actually have very

—

to

against the general strike,

little power.

of

»

j

day

of

Federation

Labor-Congress of Industrial

By GEORGE MEANY*

President, American Federation of Labor-Congress
Industrial Organizations

speaking

now

am

American

the

of

Thursday, December 15,1955

..

.

a

the

Kremlin

is going to pose

problem, and I think it's a prob¬
that labor and management

lem

^

both can make a contribution to
^Qn

soiuti0n. And I feel, in additbat, we have something

much more compelling. We have
this threat that is hanging over

country and over the heads of
the people of every free country
our

earth, and that is the determination of the people who run
the Kremlin to dominate the
power that resides in any of these
world with the godless idealogy
unions to shut off, let us say, the
that they practice. We certainly
supply of any essential article or
are possessed with enough intelcommodity that goes in the naligence to know that there was no
tional economy, except of course
change in the Communist plans
in
cases
where
one
particular
during this past year, that while
union may get into a hassle that
there was a change in method
would eventually, through a shutwhile we had this so-called "smildown, affect other organizations
ing face" technique which engenand
bring down something like
dered the spirit of Geneva, we at
a
general shutdown.
But I am punishment of some kind, because least have the intelligence enough
quite sure you must know that it we happened to criticize those in to know that the spirit of Geneva
has been traditional in the history
power in our government.
was not a spirit of good will or of
of
the American
Federation cf
faith, it was a spirit of deceit and
Labor and the labor movement in
Origin of Wagner Act
cf fraud and of trickery in order
general of this country that we
We have this stake, and I am to foister on the free world the
have never, never taken a posiquite sure that management has ways of the Communist dictators,
tion for a general strike. We have
the same stake in this system un- We
know what has happened
never tried to organize a general
der which we live.
We cannot since Geneva. We know the presstrike.
And
the
philosophy of maintain a free trade union under sure to again blockade Berlin. We

force of the

country are gathered

together in these union; and number
two, I don't know of any

.

our

organization

from

Gompers'

any

on

.

other system, and we do con-

see

the slanderous tour of Khrush-

■

Volume 182

Number 5490

.

.

.

The Commercial and Financial Chronicle

(2543)
chev and Bulganin
through India,
spilling all sorts of slander against
the
Western
powers.
We
see

>

everything

that

they are doing
us that
they
doing business at the
same old
stand; they are still de¬
termined to destroy our free
way
that should convince

still

are

of life.and substitute this
Marxist

philosophy and Communist
that

they

on
or

speak

know

we

of,

that

have

we

a

great deal to fear from the Com¬

munists, and I

am

do

about

it.

business¬

sure

should feel the

men

we

same

And

way

let

me

trade union movement

as

to

or

play

down the importance of any busi¬
ness

association, but I

you in all

say this to
The workers'

sincerity.

organizations

much

are

im¬

more

portant in the Communist .scheme
of things than
anything else. The
best case in point is tne destruc¬
tion

of

the

slovakia
'■

In

that

nists

Renublic
17

some

jointly by labor and management,

In

of

the

Commu¬

maioritv

a

in

But

free

labor

"Daily Work¬

our

sort of thing,
day in and day

same

sort of stuff

out.

they got control of the
movement

Czecho¬

of

slovakia; they took control of it.
They had been working from the
inside, subverting it, and they got
control. And they struck the city
of

Prague for

day—no milk,

one

-no telephones, no
buses, no bread,
:absolutely a dead city for one day.

And at the conclusion of that

one

day. they

effected

with

.

Masaryk and President

Jan

compromise

a

-Benes of that country,
.'compromise gave them

and

that

cabinet

a

/.minister, the Minister of Internal
i

Security

—
in other words, the
head of the state police. Within 14

days
,

they

had

control

of

:the political heads, who were just

patriotic

have
,

side

of

of

the

demonstrated
render

Communist
union

trade

The

first

order—they

again

they

could

union

movement.

in

test

Italy and France
during the days immediately following World War II was whether
not

or

they

could

successfully

; pull a general strike. For a time
it looked as if they might, but I
'

think
,

are

we

think

past

Italy and

that,

France

and

now

I

are

safe because the labor movements
of those countries

are

'

enough

the

—

free

still strong

movement

is

!

still strong enough to prevent the
Communists carrying out a gen¬

eral strike.

'

that

\ this

So I think

interest

in

carry

with

on

provement of

so

have

we

to keep

common,

country free

*

that

we

can

the

type of im¬
life which labor

our

; and management
sponsible for.

jointly

are

re-

the
fills

the

interests

Belief

not

in

the

the

final

of

enve'ope.

pay

the

worker

The

and

the

employer must be identical in an
industry because they have both
got to get their livelihood from
whatever

is

by the in¬

dustry.,
unity of American labor,
new
AFL-CIO, presents

under the

threat to the American

no

Profit

System

analysis, there

j

people,

:

S

to

the

continue
lot

of

to

threat

no

We

are

try to
people

the

represent.
We are going to
tinue to try, by collective

im¬
we

con¬

bar¬

of

Mr.

Riter

a'wonderful

is

between

stand

for.

I

stand

incentive.

I

believe

enterprise system completely. I believe in the'return cn
capital investment.
I believe in
management's right to manage.
And

believing

things,

as

labor,

.in

all

these

what

for

a

this

as

to

representative of free

is there left for us
about?
It is merely
disagree, if you please,

to what share the worker
gets,
what share management gets from

as

the

the

in

that

common

of

And' above

this

in

of

way

of

life.

of

being

able

we

this

idea

assemble

we

have

have

been

system

where

in

return

all that sort pf

keep that.
for

great

a

for

see

ings

wealth produced

by the




par¬

to

above

organizations

of

labor

the

comes

from

Fifteen

Such

action

in

would

Smith

with

provide '

and

next

this

is

year

not

first

be

Furthermore, there
earnings to pay divi¬

CHARLES T. JAWETZ

In

dends.

1955,

the

first

Mohawk's

about

offset

an

9

months

net
to

profit

Smith's

of

was

oper¬

ating loss. In

ered

in

necessity,

level

of

(which

(a)

cffshore

in

the

industry)

stalled

ward

Tax

losses

carried

should permit all or

for¬

a

very

the

event

decline

in

immediate
in

ment

savings
the

improve¬

and

operating

sulting from

allowance for

no

efficiency

T.

the

Jawet/

the

—about

unit

in

extremely

have

a

for

This

announcement

would

$150

a

in

uses

open many new-

the

hospital,
food packaging fields.

$30 mil-

of

$2.25

realm
as

of

the

sile, and gas-generating purposes.
Many more paragraphs could

'

ex¬

modestly

be

suc¬

used

this

expounding
fine

large

end

probably

the

of

outlays: in

the

business

chosen.

share.

a

the

This

future

is

but,

unit

in

solution of

a

of

responsible
quiesence in ex¬

With State Bond &

the

is

much

as

the

on

dividend

likely to be

with State Bond &

time.

28 North Minnesota Street.

is

for

increased

not

some

It

is

NEW

ULM, Minn.—Geunther R.
has

become

not an

offer

to

sell

nor a

solicitation of

an

offer

to

■

stock

of

due December 1, 1970
Convertible into Common Stock through November 20, 1970

of

Price 100.5% and accrued interest
t

■.

from December 1, 1955 to date of

delivery

Masco

Industries.
Alexander

Stock

at

9

Smith

equal

the

Exchange
Masco

new

on

common

to

times

At

what

conservative estimate of

with

almost

immediate

prospects and
tax

York

represents

common.

5.5

New

Copies of the Prospectus may be obtained from the underwriter
only in states in which such underwriter is qualified to act as a dealer in securities
and in which the

the

seems

period

to build the

ahead

in

which

business, this stock

9 could well be

be legally distributed.

Dean Witter 8C Co.

dividend

possible five year

*

"

*

K

underpriced.

at

December 9,

1955

x

•

*

*

"

I
_

relief

may

a

earnings;

.

a

Prospectus

price

a

*

Fifteen-year 5% Convertible Subordinated Debentures

op¬

*

connected

Mortgage Co.,

buy these securities.

10c quar¬

as

Mtg.

CSpecial to The Financial Chronicle)

Teuoert

rate

the

been

relative

view

In

on

Exchange.

company's cash
position and large projected ex¬
penditures, the present $3 annual
,

in the

some

virtues

Unfortu¬

The stock is listed

New York Stock

Varian Associates

its problems. In the

The

the

company.

$2,000,000

sales

after

and

approximately

industry

earnings

efficient

an

ing toward

selling

drug

improve

the

million

produce

terly

temperatures will
in

The offering is made only by the Prospectus,

ultimately be reached, for
example, a 10% pre-tax margin

erated

The resistance of it

10% pre-tax.

Should

the

as

pipe and packaging film

'to distortion at steam sterilization

ploration.

(c) Is the buyer, at these levels,

volume

taxes

different from each

as

be made.

of these

even

chemical

profit margin to the level of
efficient

an

any
From

known.

a

ahead,

resist¬

-

than

it, articles
can

of

materializes?

pay

to build sales volume and

cold

and

While'* the

The
Charles

funds
conservative dividends, to
strengthen the capital structure,

to

heat

and

re¬

With

merger.

five year tax-relief period
such earnings will supply

versatility,

company
has not nately, space is at a premium. I
anything outstanding in re.- believe firmly that for the inves¬
cent
years
in bringing in new tor with patience, who is willing
discoveries, it is believed that to invest money in return for a
they will become increasingly ac¬ modest yield in an assured growth
tive in exploration from now on. vehicle,
Phillips can be ideally

large part of pre-tax earnings to *
(b) Is there a growth factor of
be retained by the
company for, sufficient vitality present to en¬
the next five years. Such an esti¬
courage forward looking institu¬
mate of earnings is conservative
tional buyers?
because it makes

about

three

large-

done

be

or

of

includes

acres

ploration be

this

vance

mate

leases

in

that

now

other

cessful.

should the ad-

unit

earnings would approxi¬
$1.68 a share on the new

investment

route

polyethylene

•;f,
an

to

of it will

toughness,

to

ance

be

^

full

to

tube

MARLEX,

made

the'extent

strength,

the

to

of

Endacott
further
stated
that
MARLEX tests demonstrated that
it
combined
greater

in

tp

.

case

of" this
seven

test

scale production will be achieved
in
the
Summer
of
1956.
Mr.

of

company

the

to

years

direc¬

the
company
probably
to
extent of 50%, should their

move

profitable

travel

prob¬

on

has

and

..135,000

forward

pre-tax

oil

this

Endacott,
major

new

Phillips is actively engaged iii
the
study
and
application
ot
properties.
The potential in them is fabulous. brocket energy. The company pro¬
.They could materially increase duces a type of solid propellant
the total oil and gas reserves of Adaptable, to use in rocket, mis¬

.

the

is about one-half that of the most

in

size

has

In the

the

pol-

President

Paul

-however, plastics

*

seems

(>

mar¬

can

the

from

years

market.

double

cash-in period

<v

,

ket,

in 1955

chemical ; research

Phillips

.

In view

recurity

times

company

Phillips

cn

be diob

'

.

any

a

.date.

can

were:

general
sales volume

than

.spent

mak¬

immediate savings.

pre-tax margin

five

Mr.

September,

new

and

As the

said

trade¬

revolutionary

developments
usually require

nature

and

gas

Phillips,

ten

millions of dollars that have been

\

high

5%

natural

could be

Phillips'

chemical

be

attainment.

further

America.

ing this selec¬
tion

of the

a

than

.entering

of

the fourth quarter,
profits should improve.
The merger should provide some
With $110 million

of

tion

those consid¬

combined

and

beyond

bene¬

be

polyethylene

stated last

philosophy of Phillips
be.
the
upgrading,
chemistry, of the raw

gone

'

Some

of

to

ably

*

Senior Partner, Daniel Reeves &
Co.,

tor.

amount

an

its

of

yolefin plastics.

The basic

more

dividend

four years.

should

sources

for

family

opera¬

should

major

course,

MARLEX,

mark

oil,
and with the possible
exception
of Standard Oil of New
Jersey,

stock-: given to' more
than one fac¬

common

their

chemical

million

derived from these

stockholders in terms of dividends : logically and honestly be catego¬
on
the stock of Masco, early in rized as "one I like best," consid¬

holders

the

Phillips, the

of

Much, of
about

interesting fact in the

tions.

and

1956, Phillips

a

can

market.

earnings picture is .the profit that

The

be

expected
to be
immediately reflected in the

share

mark.

Security I Like Best

Alexander

per

$6

should

ficiary and this

earn¬

that

management, and I, for one,
can
merely say to you, I would
like to see that
cooperation.

must,

the

in

rea¬

between

of

eration

increase

high
and
prices.
Fulbright Bill, estab¬
field prices for natural

increasing

be enacted in

stock

share for

modest

a

remain

at

the

lishing
gas,

Phillips
neighborhood

the

should

Should

an

sure

am

cooperation

Beverly Hills, Calif.
preferreds, and if the merger is
consummated, such action seems-, Phillips Petroleum Co.
likely, as well as providing con¬
.'.In choosing a security that
tinuity of dividends to Mohawk

1956.

in

per

through

the rate of $1 a year; To continue
this dividend, it will be
necessary
to clear all arrears on the Smith

From

much

stock

estimated

1955.

so

probably

standpoint

materials

The

a

compelling

very

however,
appeal, particularly
tq those seeking a growth ve¬
hicle, that the demand .for the
has

the company

million

for

earn

$5.50

show

want

we

From

bond

type. In
the stock

spite of this,

is¬

favor

1955, with
a
cash
flow
of
about
$12 per
share; Nineteen
fifty-six should

investment,

thing, and
And I

of

can

can

the

in

stockholder.

$175

earnings
should

en¬

men

the

expended

this

over

unions, where they

profits

son

doing

We like this free

Petro¬

probably

equal

freely
you are doing here today and

past week.

new

essary, probably
a
major
issue of the debenture

security

siders the cash
generation against
estimated expenditures for
1956.
These
expenses
will

th's

as

the

above

19

highly possible, too, that Some
long-term financing may be nec¬

the

probably a little weak cashwise, particularly when one con¬

have

like

like

We

to

a.l,

enumerated

is

seems

We

common:

obtain

Phillips
squarely faces

financial standpoint

silly to be fighting about
things that we do not have in

common.

unwarrant¬

to

choosing,

Co.,

sues

were

rather
the

an

order

factor?

my

leum

NAM,

it

in

It is my belief that
the

perhaps

organizations

Commerce,

degree

growtn

Continued from page 2

disagree
us

sacrificing yield to
ed

seems

dividend of

difference

great

things I stand for and the
things that Mr. Parker, Mr. Slight

to
i

much

should be

public, it presents

going

do

great

of

produced

better acquainted with the
great
organizations of abor. We have so

can

to American
management.

the

,

1

Chamber

to

in the free

j

the

share

is

meantime, via
tax-relief, earnings are likely to
be such as to justify a common

a

for the profit system; I believe in
the profit system.
I believe it's

1

the

it presents no threat to the Ameri¬

prove

could

we

of

terprise
I feel

and

i

better

fair

a

that

as

produced

industry, it is not an unreasonable
expectation,
in
view
of
the
progress of the industry in mov¬

'

In

union—no

ting

common.

people and a city com¬
helpless by their control

the

controlled

gain anything by put¬
fellow out of business

can

thiiiK

i

get

wealth

of management such

final

were

a

pletely
of

we

the world—

Mr. Masaryk and Mr. Benes
patriots

'

people that

as any

this

on

fair,

a

ana'ys's, no union
can gain
anything—I am speaking
now
of American unions, not a

that

country lock, stock and barrel, be¬
cause
they had demonstrated to
as

the

in

Czecho¬

They didn't have a cabinet
member.
They didn't own any
businesses. They had a little pa¬
per
in
Prague which was the
er," just the

management,

that

problem
American way.

square

there.

•same

American

solve

lo

"the national Parliament. They had
less than 27% of the membership

counterpart of

in

gence

the

.

have

rot

American worker, enough intelli¬

to

years ago.

country

d'd

gaining,

say

this to you, ladies and
gentlemen.
I say this not in
any attempt to
emphasize the importance of the

-

ticular enterprise. And I am sure
there is enough intelligence in the

who

never

management.
We do know

•

well

so

world

and
makes good
its promises, either to worker

that

'

'

.

'

'

-

%

.

Chronicle

The Commercial and Financial

Thursday, December 15,1955

..

.

(2544)

20

Russian Aid To Backwaid

which

tion

Anticipating imminent Eisenhower-Eden discussion of Russia's
new
economic drive through offering assistance abroad, Dr.

lin's challenge.

policy of of¬

fering capital equipment to under¬

developed
-

figure

will

countries

backward

Russian

prominently
among
the

*•'

topics

discussed

on

already

over

-

strained

it would be

the occasion of

sources,

S i

President Eisenhower

r

Anthony
Wash¬

Eden's

ington visit at
the end of
The

January.

much of
re¬

business or do the
proposals
made recently promises merely represent empty
made for
propaganda
by the Soviet gestures
Government purposes? It must be recalled that,
to Egypt, In¬ on more than one occasion in the
Russian
dia, Burma past,,, much - publicized
really

other

and

Einzig

Paul

countries, to

mean

promises of economic aid to coun¬
outside the Communist Bloc

tries

to

record

levels.

The

that
in fact

recent

months

suggests

From

gigantic

public works

opment instead of China, it delays
the process of industrialization of
China.

of

United
to

countries.

and

States

accept

and

There

is

strong temptation for the

a

Russian

the

embark

Great

on

a

new

Britain

challenge
with

race

the Communist Bloc, as to

which

—in the sense of leading to unre¬

quited

exports

capital equip¬

based

by

commercial transac¬
"give-andthe case of Burma it is

be

far

ordinary

assistance

take."

velopment.

in return for the build¬

clear that,

can

provide more

economic

BROKERS

IN

ing

and

equipment of a techno-

BONDS

MUNICIPAL

AND

caused

that

tightening in the money
I

* /

-

Mortgage repayments have

difficult

tic, however, on the part of states¬

large,

and

more

major groups of lenders

though lim¬
become more
expensive for

types of undertakings.

many

pride themselves in their
realism, to expect gratitude in
politics. India, Egypt and Burma
will accept all the economic as¬
sistance Russia is prepared to give
who

capital market char¬

a

by

supply—has

ited,

It is not very realis¬

these

attributed

have

ments and the moderately

solely to a more
restrictive monetary policy. This
by no means an adequate ex¬
planation. For example, although

is

for

starts

housing

below

been

—

savings

mutual

sav¬

banks, and life insurance
companies. This is a very large

ings

the total increase
the capital and liabil¬
from these institutions
of

this year in

ities

due

public. In other recent years
in their capital and
liabilities to the public exceeded
the
increase
in their mortgage

to the

reduced

starts

of

level

and loan associations,

proportion

weeks
develop¬

Some observers in recent

have

and the ma¬

retain their freedom

EXCLUSIVELY

jority of the population would un¬
doubtedly
prefer
democracy
to
dictatorship.

some months
the very high

this

tion

summer

No

Cause

the West¬

J. J. KENNY CD.

ern

have no cause to be

powers

number

The

for Worry

In the circumstances,

probably

was

larger than ever before. If con¬
struction delays have been as seri¬
ous as some trade reports suggest,
this

number of

pleted

and

still

may

new

rising.

be

houses com¬

occupied in the first

months of 1955 was consider¬

six

unduly worried even if Russian
performance in the sphere of eco¬
nomic assistance to underdevel¬

<'///////////////^

ably larger than in any other

oped countries should prove to be
equal to Russian promise. Beyond

NY 1-3082

further to exceed the all-time rec¬

doubt, it would enhance the pres¬
tige

Since,

Union.

the Soviet

of

however, the diversion of capital

GOLKIN

housing,

increase

the

holdings by a wider
the

obtain

To

margin.

funds

needed to

high and ris¬
levels
reached
last
spring,
the ing level of mortgage lending and
any sentimental considerations of
gratitude.
They are anxious to number of houses under construc¬ to meet other financing demands

BANKS

DIGBY 4-9440

a

for
has

funds

of

market.

,

acterized

quired to give quid pro quo im¬
mediately. But their political at¬
titude will not be determined by

DEALER

in

rather

economy,

curtailment

a

investment

activity experienced in recent

demands in

de¬

them, especially if, and to the ex¬
tent to which they are not re¬

FOR

DEALERS

benefit

to

industrial

their

in

tions based strictly on

In

stand

which

Russian economic aid would
duly grateful, for the Russian

men

side

the assumption that the

on

countries

than

also
rising, but at a slower rate.
The recent volume of construc¬
As a result, the amount of mort¬
tion and high levels of economic
activity generally have resulted in gage debt outstanding has been
Mortgage debt
large and widespread price in¬ growing rapidly.
creases
for
building
materials. outstanding on small properties
After about two years of com¬ this year can be expected to- in¬
paratively easy material supplies crease by about $13 billion, com¬
and efficient operations, materials pared with $9.6 billion in 1954^
This year's increase in all nonshortages and delays in the prog¬
ress
of
work
have
reappeared. farm mortgage debt will be close
Likewise, financing—in competi¬ to $16 billion and of this, over $11
tion with many other expanded billion will be acquired by three

this, they choose to leave China's
demands unsatisfied in order to

they amount

how

ment—and
to

of

the

throughout

been

If in spite of

of this.

demands for credit

It is the large

a

years.

of the Kremlin are no

aware

whole,

a

.

backward

in the economy as

these areas, as

major current problem
is to prevent development of in¬
flationary forces, which could lead
to serious maladjustments and de¬
clines from the gratifying levels

doubt

credit situation

ing on housing markets, it has not
prevented an extraordinarily large
volume of mortgage underwriting.

oped countries a large part of the
heavy equipment which is avail¬
able for export. After all, if India
is assisted in her industrial devel¬

men

Whatever effects the pres¬
may be hav¬

rising.

real

and

edly than most manufacturing ac¬
tivities—are close to capacity. In

other underdevel¬

<

to

Demands

ent

contracts, or to provide them

indeed

construction

that

ingly

comparable period last year.
for financing are still

in the

in

increas¬

estate activities—even more mark¬

came to nothing, or next to noth¬
be able to supply capital equip¬
with ing, in practice. It is at least pos¬
sible that history will repeat it¬ ment to India and other countries,
steel plants and other capital
it is because they hope that in
self on this occasion.
1
equipment, gave rise to a renewed
Another question to be exam¬ doing so they would be able to
agitation on both sides of the At¬
ined is, how far the Russian pro¬ bring
these countries into the
lantic in favor of a substantial in¬
Communist
Bloc.
This hope is
crease
of Western economic aid posals amounted to economic aid

undertake

17

evidence

China's

of

utilization

countries if Russia were to divert

The

responsible

those

by

shaping the policy of econom¬
ic
assistance
to
underdeveloped
countries.
I
"
"-•»

for

The Real Estate Markets

development of nu¬
as in an extensive

manpower.

China

altogether

Monetary Policy and

and Sir An¬ suit the interests of the democratic
from

that

Burma,

The

capital equip¬

advisable if point of view, it would

thony Eden were to give careful
thought to the facts of this muchadvertised Russian economic drive
in the East.
Does the Kremlin

and

India

to

experience should not be ignored

capital

Continued jrom page

practically unlimited. In¬
deed the main danger to the West
lies not so much in the Russian

industrial

wel¬

given to the Soviet leaders
the occasion of their recent

par¬

attention.

needs of China for

immense

a

on

immense

necessitate

Even if it would
mistake to overrate the sig¬

visits

investment
which
should be given priority
over economic assistance to under¬

ment are

progress in the
clear weapons

Self-Restraint

Before committing too
our

the

of

purpose

move.

Our Need for

be

to

main

the

actly

point ,is

latter

worth

ticularly

development of
countries, which is ex¬

assistance for the

will

mation

additional

maximum

employ the

come

The progress of auto¬

potential.

to

Western coun¬

of the

nificance of the enthusiastic

strengthening their own industrial

materially
assistance to

economic

This

China.

be

of

purpose

is

has the ad¬

group

immense manpower^

an

without

and

reducing

the

for

resources

worth con¬
Soviet Russia
would be in a position to under¬
take economic assistance outside
the Communist group on a large
scale
without
thereby
slowing
down its own capital development
scheme,

tries

it would be advisable for
the Western countries to use their

for instance.

Soviet

answer

beyond the
commitments.

of machine power.

between the free
the
Communist

and

countries

whether

sidering

From the point of view
the existing bal¬

power

existing

vantage of
the

group,

Above all, it is well

make competing
of Soviet's prom¬
ises; and, in any event, possible detriment to Communist
group's own capital development plans. Concludes it would
be a grave mistake for Western powers to divert undue propor¬
tion of their resources, particularly on a credit basis, to equip¬
ment of underdeveloped countries merely to meet the Krem¬

of

the

If

maintaining

ance

under the Co¬

Burma receives

lombo Plan,

Einzig advocates great caution before we
commitments. Cites probability of insincerity

that the new Russian

little

aid, such

in the nature of economic
as

of

businesslike trans¬

a

action in which there is very

By PAUL EINZIG

LONDON, Eng.—It is understood

find

we

challenge.

So on closer examina¬

elsewhere.

Countries

sell

easily

could

Burma

of

extent

to

sources

countries

developed

proportion of their re¬
the equipment of un¬
derdeveloped countries merely for
the
sake
of
meeting
Moscow's
undue

an

logical school by the Soviet Gov¬
ernment, Russia is to receive rice
and
other
much - needed
goods

equipment from China would de¬
lay China's industrialization, the
net result of the new policy would
be detrimental from the point of
view
of Communist - imperialist

CO.

half year.

half

ond

ord

second half of

These
an

first

Completions in the sec¬
will
undoubtedly rise
1950.

exceptionally heavy volume of
In addition, sales of an

unprecedented
have

houses

old

of

number

also

financed.

been

lending so
is at record levels,

Accordingly mortgage
far

this

more

year

than one-fourth higher

than

these
borrowing

which have also been large,

have

institutions

been

heavily this year from commercial
banks. Mortgage lenders have also
been obtaining forward commit¬
ments from the banking system in
order to be in a

position to make

their own forward commit¬

good
ments

to

lend.

A

special survey

banks indicated that
the year ended Aug. 10, loans
such banks to mortgage lenders

of large city
in
of

risen

had

completions have required

financing.

keep up the recent

dollars

by over half a billion
that additional com¬

and

mitments for $11/4

billion of loans
outstanding.

to such lenders were

addition, direct real estate loans

In

by

commercial

banks

are

likely

to rise this year

by over $3 billion.
It should be borne in mind that

expansion in commercial banking

designs.
this

For

would

it

reason

be

United States

if the

mistake

Great Britain were

a

and

to embark on

competition with the Soviet Un¬
in the development of back¬
countries.
In particular it
be
a
mistake
if
would
capital

We

maintain

active

i

i.

ion

UNDERWRITERS

—

DEALERS

ward

equipment

DISTRIBUTORS

term

of

credit

these
to

basis

their

are

BROADWAY, NEW YORK (6)

WHitehall 4-4567




'

on

a

a

I

Teletype NY 1-1658

Your Inquiries are

invited

If

position

from the
credit ba¬

well afford to pay in
goods for the Russian equipment.
sis, they

v

in

equipment

Western countries

61

forms

to be increased.

countries

get

or

Buffalo and Western New York issues

long-

on

underdeveloped

to

were

a

other

supplied

lending

countries

Tel.

trading markets

in

a

can

Russia would thus be able to

gain

without

TRUBEE, COLLINS & CO.
Members
Associate

New

York

Stock

Members American

M & T BLDG.,

Exchange

Stock Exchange

any

prestige

practically

Telephone Madison

York

Wire

Connections

sacrifices.
FAHNESTOCK & CO.

It

would be

a

grave

mistake if

the Western powers were to

divert

Members

s'f

Bell Teletype BU 544

1400
New

.

BUFFALO 2, NEW YORK

New

York

Stock

Exchange

nwpjrttti-wvlw^j'a^flwmwvffrtj
....

Volume

182

Number 5490

operations creates

.

.

The Commercial and Financial Chronicle

.

supplies of

new

Factors in

money in contrast to other finan¬
cial institutions which lend exist¬

It

is

evident

that

A

builders'

obligations,
terials and
been

need

higher

for

of

ma¬

take

to

loans

mortgage

Since 1956 is

(I)

Presidential
the coun¬

a

year,

largest on record.
Moreover, a
larger proportion of financial in¬

try's

This

commitments.

individual

that

have

not

demands that

otherwise have
accounts

in

builders

are

It

the

housing

budget should
be

industry

dustries

for

resources,

prices

materials

have

creased.

Properties

under

financing
tories.
been

to

these

carry

inven¬

The demand for funds has

the

beyond

supply of sav¬
additional funds have

ings,- and

tion

Except, perhaps, for the extent
to which
future

ing,

situation

the

outstand¬

are

in

residential

construction and real estate is very
much like the credit situation gen¬

erally.

Heavy demands for credit

have

in

been

evidence

almost

everywhere—to finance the high
level of

buying of auto¬

consumer

mobiles and other durabue goods;
to finance business expansion of
fixed

plant

finance

and

equipment;
improvements

public

to

by
The

State and local governments.

Federal Government has also been
a

substantial

borrower

in

recent

months, but most, if not all, of
this borrowing will be offset by
debt retirement during
the re¬
mainder

the

of

volume

fiscal

The

year.

investable

of

funds

be¬

coming available from consumer
and business savings has not been
adequate to take
demands.

of all these

care

Mortgages

compet¬

are

ing with all those other uses for
the large, but limited, supply of

balancing

mercial

expansion of

sirable

in

tional

cash

de¬

to supply addi¬
balances, consistent

While

(5)

commercial
banking
system could not have met all of

and

a

program.

funds

economy,

for

investors'

The

continue

stock

on

emotions

have

to

a

-

ing capital goods, should
far

possible

as

from

the hands of the
available
or

lated

savings

funds.

credit

effective

most

or

frequently

Free

means

for

and

com¬

ing

Federal

with
would
ary

supplies of

to

through
system
assistance,

followed

firm

Lamey & Company.




about

one-half

by

in

Are

For

are

now

at

Of course, our

'

r

BUYING A
NEW ISSUE

NEW ISSUE

Look at the underwriter's record.

of any issuing com¬

concern

is his

is to have the issue well-distributed
to

have

a

holders that
in

can

the future.

be

We

..

a source
can

"batting average?"

.

.

of many stock¬

broad base

How

Are his past
offerings holding up?" Are the compa¬
nies accomplishing what they set out
to do
are the stocks at a premium?
No underwriter has a perfect record of
course, and neither do we . . . but we
have a good number of healthy com¬
panies that are doing well.

pany

of strength

do that job as

Here

strength

of

considerable

are

our

.

.

past under writings:
Time in

United States Sulphur

.

.

.

13

months

$1.00

months

1.50

a

effects

on

(21)

of

the

gardless
„

backs

V/s
2%

Oversubscribed

1.00

Converted into

Aug. 14, 1953
.
.
.
& Chemical j June 18, 1954

4]/2- V2
4M>-1,

2.00

Never out of

3

syndicate

Minerals Corp.

Received 3 shares

of America

should

Minerals Corp. of
Amer. for each

The

case

action

of

the

in point.

Durham

intervening

share*

3H-4<*

94

2%
2%

Canadian market
in stock

National

^Minerals

2.00

3

8, 1954

4

months

1.00

May
4, 1955
June 16, 1955

1

month

1.00

1

week

2.00

4Vrl
1 Vr %
2%-l 1/4

July

Uranium

Corporation of America

dropped

V/2 months

July

Bassons Industries

6, 1954

IVi
1

%

a

VICKERS BROTHERS
52 Wall Street. New York 5,

The long-term prospects
country are excellent re¬
any

34tf

Selling stopped—

June 18, 1954

Explorations

Aquafilter

the economy.

of

VI/14/55

l'/r Vt

4

|

way.

Lo«v

July 21, 1953

signs of weaken¬

(18) While much has been done
strengthen the country's eco¬

for

Price

Aug. 14, 1952

Chemical

Corpus Christi Refining
.
Texas International Sulphur

Quote

High-

Offering

Syndicate

Offering Date

Issue

Chase

growing

stock market after the President's

V.

.

still alive!

am

Cities

Connolly Opens Office

People Expect Too Much

of

SELLING A

(20) Continued growth of the
population should have beneficial

name
_

for

accounted

well.

Commodity prices

illness is

a securities
business from offices at 1424 Pearl

the

We

Are

with populations of 25,000
shows that local taxes

its present position

warrants

telling

Lamey & Co.

under

On
learned

structure, unfavorable de¬
velopments will still be felt in a

Lamey is engaging in
Street

be

(19) The growth of research is
boon to the country's business.

Colo. —Eugene

American

the

nomic

money

country.

EOULDER,

The

ing.

invite dangerous inflation¬

Forms

in

outlook.

(17)

repercussions throughout the

entire

can

methods

be watched for

banking

Reserve

the

re¬

portfolio.

sound

much

stocks

advisable

is

risks
a

of

thought.

prevailing conditions, de¬
funds are running far
of the supply of savings.

commercial

selection

score,

labor

allocat¬

for

new

the.

(16)

the

To meet these demands by creat¬

the

by

naturally is to have the stock sold
and raise the money. As underwriters,
we can do that job.
Equally important

sition include

Under

ahead

education, and

prompts

(15) The past record of a stock

ing these funds to applicants.

mands

concerned

more,

is important. However, the chief
factors in deciding upon its acqui¬

made

are

or

much

ties, while during advancing mar¬

European investors.

accumu¬

markets

Questions

peace,
even
Our Cities Overspending?
though the world is troubled. We
Obviously, city debts are rising
are prospering as no other people
continued up- faster than
city tax rates, even
have prospered before. But I be¬
trend
in
though the latter are becoming
lieve that bad times will come
municipal and more and more burdensome, es¬
again. We shall again be called
town taxes. In
pecially to owners of real estate.
1955, the "tax Why should city debt be rising so upon to make sacrifices to pre¬
serve
our
political and economic
bite" of cities fast at this
point in our history
freedom, as these are threatened
in the United when
general business is at record
by
war
or
depression.
These
States
will
high levels? Of course, costs of
sacrifices will be easier to make,
amount
to
city services are up all along the
and
our
efforts
will
be
more
over
$65 per line, but that is only part of the
effective, if we now pay closer
person,
com¬ story.
Raw material and labor
attention to tax and debt policies
pared
with costs also adversely affect manu¬
and to efficient government.
$61
i n
1953 facturers of many products, but
The
menace
to
our
economy
and
$56 i n the prices of those products have
and
to
our
way
of life from
1952.
I
am
not soared as much as city taxes.
political extravagance at all levels
In some cases, the city tax load
especially
Roger W. Babson
is a very real one. We must learn
disappointed has been permitted to become
with the very burdensome because of poor mu¬ again that thrift is the mainstay
of any government and of any
little attention which the Confer¬ nicipal
management
or
down¬
individual.
If voters persist in
ence
on
Education, recently held right mismanagement. There are
their demands for luxuries to be
here,
gave
to
this
important many localities where money goes
provided by city, state, and town
down the drain because account¬
subject.
governments, and continue piling
ing, purchasing, and other pro¬
up debt, we will some day force
Taxes Reflect Heavy Municipal
cedures need tightening, but even
the breakdown of democracy in
Debt
these loose policies do not fully,
America.
A
study covering 481 U. S. explain our plight.
am

The first

in

institu¬

from

other holders of

tional

petitive

owners

loan

on

when

Tough Sledding

offer excellent buying opportuni¬

from

as

come

savings

them

Op¬

pessimism,

markets

Poor

decided

prices.

timism,
as
well
as
often swings too far.

this

ing ownership of other long-last¬

gym¬

exercise

well.

as

building

financing

home owneiship, as well as financ¬

times

build

Dividends in 1956 should
favorably with 1955,
while earnings may not stand up

calculated

expanding

return of bad
Government thrift.

children

the

then

they arrive. I walked four miles
each day for 10 years to get an

debt, at time of record high business

probable

to

We pro¬

adults!

take

(II)

kets

prosperous,

nasiums

to

and

compare

quires even more than usual care.
(14) Exercise of patience by in¬
vestors is important. Taking some

a

Concludes

buses

school

swimming

and

■

plied from savings without run¬
ning the risk of inflationary con¬
In

municipal

the
have
pools

along

England

r

these demands for credit not sup¬

sequences.

will rise to $65 per person.

WASHINGTON, D. C., Dec. 15.

I

cities

and

Treasury

the

con¬

New

21

cities and towns I
(Special to The Financial Chronicle)
Municipal
ous steps during
1955 to restrain total municipal revenues from all are overspending.
KENTFIELD, Calif. —John J.}
inflation and market speculation, sources,
including Federal • and county, and state governments all Connolly has opened offices at 999
the future may call for a more state grants for education, road- over the country are living well Sir Francis Drake Boulevard to
their means. In
many engage in a securities business.
building, and other purposes. The beyond
aggressive program.
(6) It is advisable to have in rapid rate at which these taxes cases, they are forced to do so
because of heavy popular demand
have i been
mind
increasing in recent
the
possibility of further
inflation.
J. H. Lewis Opens
years points up the fact that mu¬ for luxuries in the form of ornate
school
buildings, careless road(7) Agriculture, one of the im¬ nicipal debts are also growing
(Special to The Financial Chronicle)
planning with little thought of
portant components of the national
LONG BEACH, Calif.—John H.
larger.
future
needs, expensive recrea¬
economy, is being used as a po¬
Lewis is conducting a securities
In fact, city debts increased 7% tional services and equipment.
litical football.
business from
offices at 3764V2
When I was a boy, cities were
(8) If prices do not get out of during 1954 to a record level of
Orange Avenue.
>
;
•
to
provide
fire
and
hand, unit volume in some lines $12,200,000,000 for cities of over expected
police protection, water and sew¬
should increase.
Price advances
25,000 population. As a result, the
age
systems, also good schools.
are likely to hamper business.
Zuehlke & Grieve Open
average debt per capita in these Now
the people are demanding
(9) Instalment buying will con¬
(Special to The Financial Chronicle)
cities is $196. In New York City many adidtional services, often of
tinue to be an important influence
ROCHESTER, Minn. — Zuehlke
no
real value, and all of them
on the country's economy.
the per-capita debt was over $600
and Grieve Investment Securities
(10) The course of general busi¬ per person, and is still rising! I very costly. I believe in parking
lots for their cars; but not build¬ has been formed with offices at
ness
will be considerably influ¬
predict a further boost in city and ings,
miscalled
"schools,"
for IIV2 Second Street, Southwest to
enced by the activity of the au¬
mothers to park their children. It engage in a securities business.
town taxes and debts in 1956.
tomobile and building industries.

(13)

the

expense

Federal Reserve have taken vari¬

with the growth needs of the econ¬
omy,

the

budget

their true level.

influence

order

a

Artificial factors may pre¬
interest rates from reaching

(4)
vent

will

com¬

credit has been

bank

be

at

the

defense

sound

(12)
some

would

instituted

be

not

of

funds.
While

debt

in the right direction.
(3) A tax reduction appears
likely. While desirable, it should

commitments to finance

transactions

the

of

step

been supplied

from an unusually
large expansion of bank credit.

reduc¬

national
Edwin J. Schlesinger

con¬

struction have been very high and
so
also
has
been
construction

a

even

token

of
in¬

attainable,

while

operating close to capacity and
bidding actively against other in¬
construction

condi¬

balanced

a

unable to obtain ad¬

ditional forward commitments.
With

Unless

tions worsen,

reports that

part for

un¬

world

doubt

no

con¬

(2)

they might

had.

sub¬

certainty

had the freedom to respond to the
current

be

jected to
siderable

means

institutions

economy

may

stitutions appears to be obligated
on

level.

planning the 1956 investment
program, the following factors ap¬
pear worthy of consideration:

complacency about

over

cities

that

in

children

to

municipal and town taxes, pointing out 1955

"tax bite" of cities

In

have been very close to if not the

concern

relative expansion of city

New York City

Commitments of financial organi¬
zations

tinued uptrend in

Investment Counsel,

before.

ever

Mr. Babson expresses

By EDWIN J. SCHLESINGER

credit—have

than

built
for

By ROGER W. BABSON

Program for 1956

financial

consumption

ironical

seacoast

vide

houses under

means

construction,

Our Rising City and Town Taxes

consumers

have been buying houses — both
old and new — at a higher rate
than ever before. Builders' opera¬

tions—which

is

Planning

Your Investment

ing funds.

(2545)

set¬

Boston:

80 Federal St.

Baltimore:

N. Y.
512 Keyser Bldg.

DIgby 4-8040
Houston:

5619 Fannin

The Commercial and Financial Chronicle
22

the

on

A

the

of

Board

from

with

bank

if
#

News About Banks

retire

BRANCHES

NEW

John

ice,

CONSOLIDATIONS
NEW

Bankers

and

OFFICERS, ETC. ,i

REVISED

*,

After 49 years

31

CAPITALIZATIONS

Chemical Corn

of

man

New

Chair¬

as

Dec.

At

Board

First

Division; and Carl W. Desch, Do¬
mestic Branch Operations.
*
~

City Bank of New York

13,

Dec.

were

the

of

The

of

Directors

of

National
on

meeting

regular

a

four

appointed

Vice-Presidents
at Head Office

appointments are:

The overseas

Leigh R. Cramer, former Man¬
ager of the Panama Branch, now
in charge of branches in Panama
and the Canal Zone, and Frederick
J. Todd of the Havana Branch,
wno

placed in charge of

been

nas

10 branches In Cuba.

bank's

the

Henry
Empire

Brunie, President of
Trust Company of New
C.

the election

announced

has

York

the Board
of
the
bank.
Mr.
Douglas
is
Chairman of the Board of The
Mutual Life Insurance Company
of New York and a director of
of Lewis W. Douglas to

Lyncli

Herman

Ernest

YV.

After

corporations.

numerous

A-

Redeke

serving

McGill University,

of

Chancellor

1938

from

Canada,

Montreal,

and.^Vice-

Principal

as

to

1940, Mr. Douglas become Presi¬
of

dent

Mutual

The

Insur¬

York,

he resigned in 1947

which position
to

Life

:New

of

Company

ance-

the

appointment

of

States

Ambassador

to

accept

United

Great Britain.
.

'

'.4:

,

*

*

V

Bank

Erickscn

A.

Carl W. Desch

Africa,

and two Resident Vice-Presidents
The

overseas.

pointments

are:

partment,

made

1951.

Cashier's

and

on

Dec.

Street,

12, the re¬

Trust

&

with

was

izations.

v/' ■'

,

% Y

*

,

of

Directors

.

Exchange
voted

Queens;,.Ernest
Loren

A.

Department,

W.

Erickson,
Operating

London:

1

;

.

'

.

,

V

bank's
shares

Bank

South

of

Africa,

have been pleased

Limited

to appoint Mr.

Anthony Comar Wilson to

a

seat

the

meeting and approved by the
Superintendent of Banks,

P.

9S

shares of

Manufacturing companies

75 Construction and steel firms
,

48 Textile enterprises
38 Utilities
27

Paper companies
and

>

many

others.

i

the

as

New

increasing importance,
City as the world's

York

financial center, make it necessary
,to consider an increase of capital

subscription4 rights

through

shareholders."

it

that

has

The

bank

to

notes

City.

'

■

sis

New

:

complimentary ropy of our
Monthly Review, giving the essential

'r

trading data

'

on

the

more




„

of

The

48

of

Wall

and Madison

to Assist¬

Promoted

John F.

were

J.

TO K ONTO

STOCK
EXCHANGE
BAY

STREET, TORONTO, CANADA

Schneider

William

are

48-year

official

to

Ford,

and

as

if

; ij:

sjs

Company

of

creased

its

$509,003

through

that

In the
B.
-

William Rcid, Jr.,
Treasurer, Foreign De¬

Assistant

partment.
*

*

'

v

.

*

'.

.

>

The Directors of Guaranty Trust

Company of New Ycrk,
declared
80

cents

share

per

of

quarter
extra

quarterly

a

share,

ending

close

of

result

been

business

of

on

Officer.

by

Stewart

and

reserves

of

cur¬

earnings, it was announced
Dec.
9,. by Joseph Pulvsr-

macher,

President.
The bank's
surplus it is indicated now stands
at
$7,500,000 while capital and
undivided

profits

remain

and

cen-'s

is

an
per

Jahl

on

Dec.

if

The

Board

Bowery

at

16,
the

15.

The

that

divi¬

'

S-5

H.

Trustees

Bank

Dec.

12,

of

of

The

New

Hastings

S.

appointed
and Walter
Vice-Presi¬

Stanford

Holzman, Assist¬

ant Treasurer and Peter J.

Andre,

Principal Executive Assistant. Mr.

Hastings, with 43
is

the

length
merly
Tietjen
uty

bank's

of

years

senior

service.

Assistant
was

of service,

employee in
He

was

for¬

Treasurer.

and

promoted from
to As¬
and As¬
Officers.
Sidney
elected
Assistant

were

Trust

Officers

Vice-Presidents

sistant

Trust

sistant
Borden

was

Trust Officer.

service offered by

trust

new

tion.

*1"

'!*

ij*

A

un¬

City

investment

The

addition

latest

to

sur¬

plus account brings the a?grerate
increase

for

the

past

10

year-

period to $4,030,003..
»!•

'I*

-

Guy M. Royce, Manager of the
Island
Trust
Company's
Garden

Supervisor

Office,

City

.

cf

the

bank's

Department, has

gage

moted

ard

M mt-

been

Assistant

from

National Bank & Trust Co.,
City, Mo., is reported

Kansas

opening broader and improved
opportunities to pen¬

as

sion,
profit-sharing
and
other
employee trusts. Qualifying trusts
it

Long
East

of

announced

is

their

v

\

*

Long
1956,

Island
,

pro¬

Secretary

the East Garden
it

opened

banking
North
of

Mr.

Holzman

in June,
Manager of

C>.

Trust

appointed

was

City Office wTrn

Nov.

on

Shore

Oyster

10,

1954.
with

His
the

Trust

Co:

began

career

Bank

&

with which he
spent 12 years.
He joined the
staff of Lcng Island Trust Co. in
and

since
a

two

Bay

has

then
and

every

the

with

one-half

office

Institute

with the bank

been

leave-of-absence.

of

exception of

milita'y

year

Mr. R iyce held

with

the

American

Banking prior to h's

installation

President

during
City
Office, now at 839 Stewart Ave.,
will move to larger quarters at
1942-43.

Stewart

as

The

Ave.

Garden City,

Mr.

promoted from Dep¬

controller

Reading

Assistant

changed at $1,500,000 and $1,031,901, respectively, as of the Sept.
30, published statement of condi¬

1936

Assistant

on

Tietjen,

dents;

of

Savings

McFadden and

may

in

resources

established

pool

row

special

two

Na¬
special funds
will be invested primarily in cor¬
funds

tional.

One

by

City

the

of

porate stocks, the other in bonds*
fixed-ir

other

and

mortgages

come

of

types
As

investments.

a

jectives of each pension or profitsharing plan
can,
it is stated,
be met by adjusting the ratio of

1955.
'

A.

Langstrom,
Jr.,
Stuart

Frank
E.

tive immediately. Mr. Rpyce, who
will celebrate his 20 h year witn

the'

for

totaling $4 per share have
declared
during the year
*

Assistant

result, the particular needs and ob¬

31,

this action

from

to Assistant Vice-P esHent effec¬

record

of

Officer

Vice-President and Assistant Trust

of

80

both .payable

Assistant

the capital

on

of-

Dec. 7

dividend

Dec.

.stockholders

to

on

the, company,

dividend

and

in¬

transfer

to

promoted

was

Vice-President

has

the

Department Edgar

Trust

Galloway

account

surplus

from

sum

rent

York

New

Cashiers.

Assistant

...

•"

K.

Robert

Parks, City division and Palmer
C. Pratt, Personnel, were elected

with Hilmer
Petersen, Mae F. Clark, Mrs. Wilhelmina
Scully
Gustafson
and
Mary Scott being named as As¬
*

Cashiers.

Plymouth office, John
H. Cousins, Operations, Jack W.
Gurney,
Mortgage,
Gerald
B.
O'Neill,
Foreign,
Richard
F.
Barbour,

status
T.

sistant Secretaries.

served
with the
organization
in
C. Bingham, Insta-

its

Wilfred

Assistant

his¬

Vetter

the

in

loan, Ronald M. Chisholm, Opera¬
tions, Samuel A. Clark, Mortgage,
and Philip G. Moon, Credit, were
promoted to Assistant Vice-Presi¬
dents. Previously they had been

Robert

George

since

>

1933.

Robert

Assistant Treasurers,

partment, and

Howard
1852

bank's

the

having

dents,
bank

~

York,
Founded

promo-t

of Detroit

Vice-Presidents

new

Trust

Ave.;
Grissinger, Trust Depart-5

than

request.

included

to

i st-

Sterling National Bank & Trust

Williams, Business Coordi¬
nation; and Jeremiah J. Wolfe,
Bank Operations Also: appointed
were Donald W. Krause* Assistant
Treasurer, Public Relations De¬

1,000 listed issues, will he
sent to you on

s s

'

i

'«

A

from

Elevated

tory.

sji

York,

Street

63rd

in

nated

nearly 100 offices in

Vice-Presidents
of

dends

A

advanced

were

Decker,' Walter V. Keeling,
Crocker
Nevin,
Henry
Reuter,
John F. To.to and Emil C. Wahl,

accelerated

stock

58 Financial institutions

the

John

and

explained that
Exchange Bank
traditionally
has
increased
its formerly Assistant Treasurers.
capital
funds
through
retained: The seven staff members included
earnings.
However, its present three women, the first so desig¬

cis

are

Sullivan

Viee-Fresidents

Newman, Trust Operations; Fran¬

There

major

Matson, Mortgage Department are

B.

Corn

ant Vice-Presidents

These include every phase of
major business activity in Canada.

Stubing

F.

Henry

Vice-President

Jackson

"Chemical

Department.

exchanges in Canada.

19

National Bank

Banking -Department. All were
previously Assistant Vice-Presi¬

ant Vice-President. New As:istant

Charles
J.
Svercel
and
Samuel
H.
Woolley, Investment

than any other two stock

if

if

list of

a

tions at

price to be determined sub¬
sequently by the directors.
In
referring to the directors' action,
a

ment;

number of industrial stocks

headed

right to subscribe to new stock in
the ratio of 1 for 8, at a time and

John U.

larger

further

the

add

to

addition.
if

Jr.,

at

a

made

was

Five„new Vic e-P residents

Edward J. Palkot, Frank C. Straah

Street, New York, announced en
by Albert C. Simmonds,
Jr., President, are LeRoy Clark,
Jr., in charge of the bank's office

The Toronto Stock

increase

served

$250,000

President.

Textor,

C.

by. George

State

Dec.- 12

Exchange lists

the

„

New

IN CANADA?

stock

was

General

shareholders would be offered the

Bank

FOR INDUSTRIAL SHARES

of

Part

possible through a stock dividend
of $250,000 while the sale of new

is

Detroit,
Mich.,
Charles
T.
outstanding, it was an—
The promotion of 10 officcrS"to at
by N. Baxter Jackson, new official posts and tne eleva¬ Fisher, Jr.,-President, announced
Chairman.
The proposal will be tion
of seven staff members to. on.jt Dec.
12. Keith B. Hackett,
submitted to shareholders at the. j u n i o r
olficerships with ' T,ie Out-of-Town Division, Arthur H.
bank's annual meeting on Jan. 17.
Marine Midland Trust
Company Hupp and Herbert A. Mertens of
if the proposal is authorized Ly cf New York has been announced the Up-Town office and John W.

Sis

IS THE LARGEST MARKET

of

111., '

nounced

New York

WHERE

of

Gen-

He

Corporation.

Bank

Evans.on,

New

MacDonald

President

capital of the First
&
Trus^ Co. of
as
a
result" of
which it was enlarged from $1,000,000 to $1,500,000 as of Dec. 21

National-

its Beard

President oi

arid

Cable

of

election

j

$500,090 has been

the

to

made

.;

the

Mr.

Directors.

1938

.

.

shares

of

"The Directors of The Standard

of

in

if

if

if

An addition <jf

Cable Corp. in 1951 and on Oct.
Dec. 8 to ask sharehold¬
authority to increase the 26 of this year was alsq named
capital stock b,y 590,425 Chairman cf the Board. »
:
if
if.
if
to
a
total
of
5,313,8z5~

in

in

^

ton, Vt.

an

1944.

Company

Trust

to

if

if

announces

elected

York,

New

well

be

Irving

eial

ment from the bank's Head Office

now

if

Chairman

Corn

ceipt of the following announce¬

will

Vice-President

James R. MacDonald to

|

of

Bank

which

advanced

was:

to Vice-Fresident in

York

1

Chemical

National

Company

on

for

ers

*

He

1932.

and

since been;

has

he

and

Trust

&

Assistant

1954^
elected Vice-;

Company in

Mr. McWilliam

Chairman

of Corn
Chemical

merger

Bank

Exchange
Bank

the

in

ap¬

of the,„Credit

who

and

Redeke

Wall

67

Upon

Phenix

-Chatham

re¬

the

merged with Manufacturers Tiust

A Herman Lynch,
De¬

Office

charge of the bank's offices in the
Bronx

known

South

of

Bank

at

Ltd.,

through

rose

growth, together with
an expanding need for credit from
industry at home and abroad as

Head

formerly head

Blaxill, New York agent

the .Standard

of
Lcren

H.

and

Bank

the ranks to become President in

Mr.
F;

1906

in

bank.
the

Exchange

of
National „Bank
Newport,
Vt.,
was
placed
in
voluntary
liquidation" effective
Nov.
15, the institution Raving
been taken over by Ithe Chitter
den Trust Company of 'Burling-i

with

33 .years

capital stock

common

$100,000,

the
In 1928 Mr. Wilson joined
after

if

if

*

succeeds

who retired

V.

value.

par

With

Flanigan,

C.

Wilson

Mr.

Austin

same

Gn

cently

engaged in the coordination of the
operations of the combined organ¬

$

*

*

withb-Corn

Horace

by

President.

by N. Baxter
Chairman of the bank.

career t

12

.announced

was

David

12

Jackson-,
Mr. McWilliam .staTtecf his bank¬

ing

York,

Dec.

Exchange

Safe Deposit Company, it was an¬
nounced

e-P resident in

c

4,000

in

$100,000

shares, par $25 each, to $175,000,
consisting of 7,000 shares of the

charge of Branch Loan Control at
Manufacturers Trust Company cf

Exchange

Bank of New York and

V i

as

from

stock

appointment of Richard P.

Wilson

Vice-Chair¬

as

Chemical Corn

of

man

The

will

McWilliam

R.

Dec.

on

if

if

*

of banking serv¬

Olean, N. Y.,
its capital

increased

18

Nov.

on

of

Company

Trust

Principal Executive Assist¬

ant.

1955."

effect from Dec. 7,

15,1955

Thursday, December

..

.

(2546)

New

and

Garden

Clinton

early next

if

The

East

if

York

Read,

year.

if

State

Bankirg

Department reports that the Olean

participation in either
\he funds.

flexible

both of
permit a

or

Because they

and

diversified
the funds
should be especially attractive to
pension and profit-sharing plans
investment

of modest

widely

program,

size, R. Crosby Kemper,

President

of

City

National,

pointed out on Dec. 7. Benefits of
the special funds are available to
non-insured
to

insured

or

other

employee plans and
plans with conversion

similar

reserves

for

in¬

vestment, he said. It is noted that
both

principal and income of the

special

funds

Federal

from

income

a

recent

are

exempt

tax, according to
ruling of the U. S. Treas¬

Department. Mr. Kemper also
emphasized that City National re¬
ceives no fee for operating the

ury

special funds.

Its only compensa-

Continued

on

page

141

Volume 182

Nuinber 5490




.

.

.

The Commercial and Financial

SOCO NY
LEADER
.

I N

Chronicle

(2547)

MOBIL

OIL

;LU BRI CATION 'FO R

Affiliates: General Petroleum

COMPANY,
NEARLY

A

INC.

CENTURY

Corporation and Magnolia Petroleum Company

2^

The Commercial and Financial

Chronicle

...

Thursday, December 15,1955

(2543)

24

early stage, limited credit to cer¬
tain

Innovations in Granting of
Instalment Sales Credit
after

maintained

well

more

The dramatic rise in instalment
credit outstanding

from a prewar
high to $6 billion in 1941 to over
$24 billion outstanding in 1955 has

19457823

the

as

as it could set
individual cus¬

for

limits

longer

could

no

vary

the

months

of

number

j

it
or

although
determine

tomers,

briefly the recent growth in the
use
and volume of retail instal¬
ment sale credit.
The most com¬

This revolv¬

account.

instalment

an indi¬
conventional

on

vidual basis as in the

ing budget plan was a limited se¬
lective type of credit extension.
It had the disadvantages of being

innovations in

both relatively tight (6 months)
figures available are those and rigid in its terms and of
But it was a
for department stores. In 1945, a lacking coverage.
year in which credit extensions step in the direction of the fully
automatic
broad coverage plan,
were controlled by Regulation W,
the
revolving
budget plan
but which was the first year in for

the

which instalment

plete

accom-

been

panied

by

fundamental

extending
credit

sale

quantity,
department stores sold only about
4% of their goods on instalment
credit.
The index of department
store instalment credit outstand¬
ing, calculated on a 1947-49 base,

—

retail

new

credit

plans,

which have by
their

design

eased

credit

sales

stalment

credit

was

posi¬
selling
a

36

Even

of Dec. 31, 1945.

as

though they are still at

in¬

made

and

sale type goods

available in greater

were

instalment

of

moderate
steady in¬

levels, there has been a
crease in both of these measures

the

to

terms

the

promoted

and

out

spelled

customer.

It

gave

discretion, within certain
to determine the
distribution of his purchases ac¬

him the

limits,

narrow

cording to size.

Apparently these

plans were not only successful
but opened the avenue for pre¬
dominantly "cash" stores to enter
the instalment sale credit market.

the initial re¬

Before too long,

so that by 1954, volving budget concept was ex¬
department stores' panded so that it greatly liberal¬
on
instalment ized the extension of credit. Cov¬
have
broad
implications for the retailer, as credit, and the index of instal¬ erage was extended to all types
well
as
the
consumer
and
the ment credit outstanding had risen of goods, and terms were length¬
to 277.
Table
I summarizes this ened generally to 12 months for
economy.
so-called soft goods and 24 months
Although consumer instalment growth.
TABLE I
for
hard goods.
These are the
debt exte nded by department
generally classified into
stores, furniture dealers, mail or¬ Department Store Instalment Sale Credit goods
der

Wotozin

the

11%

of

sales

tool. This may

businesses,

outlets

over

total

tive

Harold

and

handling

retail

other

similar kinds of

goods is presently only about 15%
of total instalment debt, it is a
strategic 15%. When automobile
loans, modernization loans, and
loans

are

is the credit used in the purchase
of a large share of durable con¬

and

goods

sumer

increasing

an

share of non-durables.
If

the

spread

rapidly

to

they have in

as

Index of Credit

Outstanding

(1947-4f)=100)f

'

6%
7%
9%
10%

10%
11%

•"Federal

Another

however,
jected most of the pure revolving
budget concept. They instead de¬
veloped plans modeled after the

stores,

Mail Order Store
Plan

Automatic

instal¬
the last year or two, retailers (de¬
ment sale credit so as to convert
partment stores and mail order
it to a positive selling tool was
houses in particular) will be most
first
taken
by the
mail order
heavily committed to instalment
houses a few years ago, when they
credit business, and their credit
evolved automatic instalment
outstanding may reach heights
credit
plans.
These spelled out
which would not have been con¬
terms for the customer, for the
sidered sound or profitable by re¬
sales people, for the advertising
tail managements a few years ago.
and promotion department, and
Although furniture stores

also

are

adopting these new plans, they
have traditionally been more ag¬
gressive in their employment of
instalment

credit.

It is not too difficult to envision
a

shift in

the

distribution

of

decision

The

to

extend

for the credit office.

plans of the mail order retailers
but incorporating revolving bud¬
get features. As initiated by sev¬
eral leading department stores, all
of the characteristics of this mail

negotiations

on

The latter is

terms between the
and the cus¬

clerk

office

credit

A consistent, uniform

tomer.
ex¬

are

taken over

emphasises on the size of monthly
payment,
not
the
number
of
months, terms charts for sales

longer included lengthy

no

house plan

order

—monthly graduated terms, with

significant, for a credit pur¬

most

chase

department
apparently re¬
of

group

pol¬

and advertising depart¬
advertising and ticketing
A noval and important

people
ments,

terms, etc.

aspect of the plan is that the
monthly payment size can be set
according to the customer's ability
and inclination to pay, as deter¬
mined by

national consumer sur¬
This was the approach emplayed by the author in a plan he

veys.

enunciated. To credit men. instituted for his company. An¬
the art of bargaining other significant provision
(the
"good" terms—that is, larger revolving budget feature) is that
ment credit,
as
well as greater
down payments and shorter re¬ once a customer establishes a bal¬
fluctuations in savings as they are
affected by debt repayment pat¬ payment periods—this was a de¬ ance, he may continually add pur¬
parture in method which took chases so as to maintain it without
terns. And these changes in pat¬
from the credit department some increasing monthly payments. And
terns of saving and consumption
of its jealously prided control over he can add to his account, so as
will be reflected in alterations in

penditures

goods

toward

most

,

commonly purchased with instal¬

the

seasonal

patterns

ment store and
may

further

retail

depart¬

of

sales.

They

the

accentuate

clical instability of durable

expenditures

with

the

cy¬

goods

resulting,

concommitant repercussions in the
economy.

The department stores and mail
order houses have been the

cipal

innovators

prin¬
instalment

in

selling.

They have evolved and
adopted, in one form or another,
credit
tive

plans

selective

which
than

rather

are

quantita¬

qualitative,

plans^which in most

—

have effectively and

cases

or

inflex¬

ibly liberalized credit. They mark
a

shift from passive to active ex¬

ploitation of instalment sales
credit

haps,

selling tool, and, per¬
new era in the use of in¬

as

a

stalment

a

credit

selling by

major

retail outlets.
It

may

1 Data
ernors

to

of

obtain

be

released
the

well
by

Federal

these

to

examine

the Board
Reserve

ratios.




of Gov¬

were

icy

was

versed

in

for

credit.

of

scheduled

The

terms,

for the customer by
the salesman from his chart, ad-

spelled

out

vertised,
to

and

in

many

cases

price tickets attached
merchandise, was most inter¬

printed

on

to increase the

little

This is,

balance, with very

monthly

added

payment.

in effect, a revolving bud¬

get plan built into the
automatic plan.

this

Although

quantitative

plan

certainly

esting in that, systematically, the

liberalizes the extension of credit,

larger the purchase the more lib¬
eral were the terms offered. They

it enables somewhat more

were

most

graduated monthly, and in
only token down pay¬
were required. The depend¬

cases

ments

tion

the

companies

country's

business

on

mail

largest

about 40%

on

order

of its retail

instalment credit last

year.

Revolving

Budget

the

Plans

field

matic credit gingerly

of

auto¬

with the

plan

by

be

posi¬
well
that most of the purely revolv¬
of

consumers.

It

re¬

used

volving budget plan which, in its

Virginia Electric & Power Co.
Virginia Electric & Power is an electric utility serving most
of Virginia and parts of North Carolina and West Virginia.
It
also distributes natural gas in Norfolk and Newport News, but
this business contributes only about 7% of total revenues. Electric
revenues are derived about
North Carolina and only 1% from

operating
from

provide the im¬

in increasing numbers
over
the past two years, depart¬
ment stores, furniture stores, and
other types of retail outlets have
announced
moted the

ing
or

and
new

extensively

liberalized revolv¬

budget plans, either directly,
the guise of instituting
on

estimated at 2,500,-

residing in communities of 1,000 or more.
The principal industries produce tobacco products, ships,
tex¬
tiles, rayon, cellophane, nylon, food products, chemicals, paper,
pulp, wood products, metal products, machinery, stone and clay
products, trunks and bags.
As shown in the accompanying 10-year table of earnings,
the company has enjoyed excellent growth.
Revenues are cur¬
rently running in excess of $101 million compared with $40 million
in 1946, a gain of 153%. The company in 1944 acquired Virginia
Public Service Company and doubtless this acquisition somewhat
diluted the merged company's statistical position.
In any event
the management has been able to increase the annual average use
per residential customer from 1,347 kwh in 1945 to 2,838 kwh in
1954, and the average residential rate was reduced from 3.5c to
The equity ratio was increased during the postwar period
from 27% to 36% and book value of the common stock from
2.6c.

The company has also installed a large amount of effi¬
generating capacity in the postwar period—about
two-thirds of the present total capability of 1,151,000 kw. steam.
The company has also been interested for some years in
$8 to $21.
cient

steam

hydro power at Roanoke Rapids, N. C.
border). The project furnished newspaper
while a fight with the Department of
Interior and the Virginia REA Association traveled through the
courts.
Finally in March, 1953 the Supreme Court upheld the
initial action of the Federal Power Commission in granting a
license.
The harnessing of the Roanoke River is expected to
generate 100,000 kw, with the project costing about $34 million.
The dam is a half-mile long and rises 70 feet above bedrock
creating a reservoir upstream nearly 7Vfe miles. Three 25,000 kw
units have already been installed and a fourth is scheduled for
completion currently, making 100,000 capability. * The company's
application for a Federal Power Commission license to construct
the 87,000
kw Gaston hydro project upstream from Roanoke
Rapids is still pending "but it is hoped that the license will be
granted within a reasonable time.

trying to develop
(near

some

Virginia

the

headlines

for four

years,

a

204,000 kw (maximum)

hydro development at Kerr Dam within
area.
However, the firm output is less

the company's service

completed

than 5% of the com¬
pany's present output. Southeastern Power Administration, a Fed¬
eral agency, sells about one-third of the total power from the dam
to the company and another one-third is "wheeled" over company
lines to cooperatives, municipalities, etc., with the company sup¬
plying SEPA with firming energy at rates slightly in excess
of generating costs.
It is expected that eventually the remaining
one-third of the power will be marketed outside the service area,
but temporarily a portion of it is being purchased by the company.
Several large generating units have been added recently in¬
cluding a 100,600 kw steam unit at Portsmouth last year and a
slightly larger unit at Possum Point this year, together with the
100,000 hydro at Roanoke. Future units include 160,000 kw steam
at Yorktown which will use by-product coke (scheduled for com¬
pletion in mid-1957) and a similar unit authorized for 1958,
together with possible additional hydro.
Share earnings remained in a narrow range during the years
1949-53, $1.78 being earned in the latter year. Since that date,
however, earnings have improved rapidly to the $2.54 recently
reported for the 12 months ended Oct. 31. Contributing to this
showing were a number of favorable factors including an electric
rate increase in 1954 of about $4.8 million annually, equivalent to
about

33c

share

a

on

the 6,600,000 shares now

outstanding. In
became effec¬
rate paid for

November, 1954, an adjustment clause in gas rates
tive which adjusts for changes in the wholesale

(an appeal is pending, however).
efficiency of the new generating equipment,

natural gas
The

plus lower

also were important factors. Average fuel costs (prin¬
cipally coal) declined from $9.15 in 1952 to $8.36 in 1955; and the
average number of pounds of coal needed to produce one kw of

coal prices,

dropped from 1.01 lbs. in 1950 to .83 lbs. recently.
electric and gas residential customers were con¬
nected to the company's lines in the 12 months ended June 30,
1955.
Average use of electricity increased nearly 6% resulting
in a gain in electric output of over 9% in the first half of 1955;
and the abnormally hot weather during July, with a resulting
heavy air-conditioning load, caused a record output for the month,
nearly 19% over the previous period.
At the recent price of 43 and based on the current dividend
rate of $1.60, the yield is 3.7% and the price-earnings ratio 17.
With a payout ratio of only 63%, another increase in the dividend
rate appears possible next year.
However, interest charged on
construction may result in a lower credit next year with a possible
dip in earnings of about 9c from this factor, unless offset by
gains elsewhere.
.
,
>:
,
,; ♦

steam

Nearly

power

30,000

COMMON STOCK

RECORD

page

Earnings

(Millions)

123

Book

Approx.

Equity

Dividends

Range

Ratio

Value

$1.40

34-27

36%

$21

REVENUES

1954

$96

$2.20

1953

84

1.78

1.40

27-23

34

18

1952

77

1.74

1.35

27-21

31

16

1951

69

1.65

1.20

23-19

30

15

1950

62

1.86

1.20

22-17

31

14

1949

56

1.67

1.20

20-16

29

13

50

1.19

0.90

18-14

30

11

1948
1947

45

1.81

1.25

17-14

28

10

1946

1.71

1.00

-

40

28

9

42

1.00

-

27

8

1945

pro¬

under

Continued

population of the territory served is

The

7%

West Virginia.

000, roughly two-thirds

Year

ing budget plans will evolve into
this type of plan.
Mushrooming
may

from Virginia,

92%

may

petus for,

generally
offering instalment credit along
conventional lines (12 to 18
months, determined individually)
into

budget

of credit to the income

outstandings

The department stores

ventured

revolving

omitting the blanket authorization
of credit and gearing the exten¬
sion

become

did

the

credit

has

house

the

legend—for example,

of these

ence

control

extension of credit than

over

By OWEN ELY

The United States in 1953

Department Store Plan

Business.

Current

of

'(•Survey

Quantitative-Automatic

The

Bulletin.

Reserve

groupings

durable

literature.

36
154
153
197
231
259
277

4%

semi-durable,
and
in economic

non-durable,

% of Sales on

The Rise of the

continue

plans

new

as

were

1945

excluded,1 it
is about 60% of consumer goods
instalment credit outstanding. This

personal

years,

the

Instalm't Credit*

=

be

cus¬

payments promptly.

control,

of

bit

debt

of instalment credit costs,
broad implications of instalment selling, and
literal consumer credit arising from recently
adopted innovations.

the

as

foresees

a

Discusses the nature

Store Plan."

long

so

This left to the credit office quite

"Quantitative-Automatic Department

the

ing Budget Plan" and
as

instalment credit in recent
this field, such as the "Revolv¬

short survey of

a

discusses innovations in

years,

Utility Securities

to

gave

This balance could

payment.

tomer met his

Mr. Wolozin,

Public

budget

the cus¬
tomer a relatively low debt limit
serviced by a
given scheduled
simply

account

Md.

Co., Baltimore,

Economist, The Ilecht

revolving

The

amounts.

HAROLD WOLOZIN

By

of goods—mostly soft
relatively modest

types

goods—in

-

1.39

.

rt*W'Taiainfc» «tl "rtfwupiv^i

Volume 182

Number 5490

.

.

The Commercial and Financial Chronicle

.

RCA TV

camera

encased in

(2549)

special diving bell televises the activities of
•

sea

life in sunlit waters off the Gulf Stream.

1

•

Now RCA puts TV underwater to help
the Government protect marine life
In the Gulf Stream off

Florida,

inquiringly into the glowing

a

fish

of

eye

an

peers

black-and-white

RCA

public in 1939. Since then,

TV

as

a

service
more

to

the

people

television camera—ten fathoms under¬

have bought

water! As the

Today RCA pioneers again with Compat¬

camera

darting schools of fish,

U.

Wildlife Service technicians
hover

S.

RCA

remote

From

what

they

improvements in fishing

and

equipment

to help

control TV

see

new

the

Fish and

the surface

on

an

over

monitor.

through the

moves

will

come

techniques
government

protect marine life.
It's

RCA—for




television
it

was

Color TV—the system that lets you

watch wonderful

new

color shows

and-white programs on
The electronic and

the

same

or

black-

set!

engineering skill be¬

hind these achievements is inherent in all
RCA

products and services. And continu¬

ally, RCA scientists at the David Sarnoff

only natural that the development of

underwater

ible

RCA than any other television.

should

RCA

RADIO

that

come

from

introduced

Research Center in Princeton, N. J., delve
into

new

CORPORATION

ELECTRONICS

FOR

"Electronics for

tronics to make life

LIVING

OF

Living"—elec¬

easier, safer, happier!

AMERICA

J. S. Fish and Wildlife Service technicians study

shing methods and equipment
lote control TV monitor.

on an

RCA

re-

25

The Commercial and Financial Chronicle
26

preciation intended to moderate
unfavorable impact of the

the

STUDENSKI*

Urging need for

York University
Public Administration, Albany, N.

economy,

sions and

HA

.

of Federal
taxation is much too high for the
normal operations of our private
enterprise economy.
It is also
too
high for
the

level

present

gasoline.

mainte¬

bal¬

of

nance

anced

should

However, as we resolve

of

groups

crease

in the Federal deficit from

the

fruits

$91/2

of

their

labor

1952-53

so

govern¬

could

more

easily

raise

taxes

Studenski

Paul

Dr.

their

discharge

to

in

diversified

responsibilities
Federal society.
The high level of Federal tax¬
ation was required originally to
maintain a necessary high level

year

near-zero

or

traordinary fiscal achievement. I
no
reason
for going imme¬

diately beyond it to a higher goal
of Federal debt reduction. I think

belongs to the
still another

priority

that

of

achievement

round of Federal tax reduction at

time.

this
It

working within our national

sures

fiscal

the

zero

a

see

strong inflationary pres¬

to check

to

point in the fiscal year 1955-56,
accompanied by sizable tax reduc¬
tions during the last three years
seems to me to constitute an ex¬

expenditures and also

Federal

of

a

in

billion

of

that state and

de¬

The

moment.

the

for

ment

freely

ments

Federal

make
the
that

it

both

the

maintain

to

sense

tax

Federal

Now that the level of
expenditures has dropped

high Federal tax rates we make
it difficult for our state and local

have

level

this high
taxation have

for maintaining

reasons

Federal

of

of their former potency.

lost much

The

recent

tax collections

figures of Federal
and of the flow of

governments
taxes

additional

raise

to

their

finance

to

necessary

rapidly growing services, forcing
them

to

In

inordinately
into
it seems dubious

go

debt.

fact,

expenditures seem to in¬
dicate
that the Federal budget
would be balanced or near-bal¬
anced in the current fiscal year;
and that in the next fiscal year,

to

present tax rates, Federal
revenues
may, for the first time

making it difficult
for state and local governments
to increase their taxes, can result

Federal

the

at

exceed Federal expen¬
ditures, provided these expendi¬
tures are kept under control.
I would not say that inflation¬

in

years,

have been removed

ary pressures

from

still

credit

consumer

gage
cern;

also
rate.

expanding

on

phases of its expan¬

relating

those

particularly

sion,
to

keeps

certain

and

altogether:

economy

our

credit

to mort¬

and

debt offer reasons for con¬
state and local debts are
expanding at a disturbing
But offsetting these infla¬

tionary trends there are also some

the likelihood
falling off in the demand

deflationary
of

some

for

ones:

automobiles

new

and

"ew

now,

break

market is

the stock

in

of

dicative

the

of

delicacy

in¬

the

existing balance of inflationary
end
deflationary
forces.
Few

people
continue
the

the

expect
to

to

forward
at
There

surge

rate

same

economy

it is today.

general satisfaction if the
economy
just stays on an even
will be

keel for
It

both

while.

a

seems

finances

tions of

to

me,

therefore, that
our Federal

situation cf

the

and the economic condi¬

the nation warrant

a

re¬

duction in the existing high level
of

Federal taxation.

ued

Begin Immediately
some

people

may

objection at this point to the ef¬
that a reduction in Federal

fect

a

and in increased demands on their

paper

presented before the Society

Professional

Business

York City, Nov. 10,

1955.




Advisers,

New

man, but also to
overtaxed well-to-

word, let us make sure that the
tax
reduction strengthens effec¬

tively

national economy and
our political federal¬

our

the fabric of
ism.

Let

insist that both of

us

our

political parties act in a
responsible manner in the consid¬
eration of the program of tax re¬
duction during
the -forthcoming
session of Congress and that they
great

do

for additional Federal
grants-in-aid which would neces¬

sitate

rise

further

a

in

Federal

expenditures that would interfere
with the reductions of the Federal
debt The result

be only fur¬

can

themselves

allow

not

be

to

Reductions

Individual

So

far

reductions

as

dividual

choice

the

are

lies

slash

schedu'e

such

whole

rate

enacted two

in

the

of
as

was

and a rise

ago

years

con¬

between

across-the-bcard

an

the

in the in¬

tax

income

cerned,

in

Tax

Income

the

personal
exemption by
specific sum.
It seems to

some

that

me

time

this

at

the

reduction

second

prefer¬
able. An increase in the personal
exemption would benefit the
of tax

type

income

lower

most.

itself

translate

would

is

groups

It

most

quickly and completely either into
increased consumer buying or into
a

which

of

paying-off

rapid

more

existing high

results

of

the

debt, both

consumer

would

be

desir¬

able at this time.
Such

further un¬
unique Federal
dual system of government.
autonomy, and

or

our

would

in

brackets.

These ^ individuals

and

owners

the

higher income

managers

Previous

Three

Rounds

of

Reductions

Tax

of business

people — are
point where their ecor

a

incentives

nomic
selves

to

affected

are

they have not yet

them¬

exert

adversely.

debate among

there was much
political economists
reduction

as

to whether

in

Federal taxation should

not

or

stituted and also
of

be in¬

what type

to

as

tax reduction,

a

should
be brought about. The debate was
won by
the advocates of tax re¬
a

duction.!

It

reductions

is

if

clear

slackened'much

that

the

tax

even

though they increased the Fed¬
eral
budgetary deficits for the
fiscal

1953-54

years

and

1954-55.

These tax reductions have

the

economy

sions

to

helped

check the

reces¬

which
can

began in 1953.
well remember, the
were

made

in

profits tax;

a

cut

second,

consumer

the

excises

averaging 10% in the

sonal income

tax, along with

concessions

tion

of

this

in

the

As
tax

three

parts; first, the repeal of the
duction ! in

ex¬

re¬

and

be

may

economic

than

stronger

th.e

However, it would
be risky to continue to take ad¬
vantage of this fact.- Productive
ones.

efficiency will suffer if this key
group in our economy should de-

and

1 At

cer¬

applica¬

this

advert

to

point,

I

help

cannot
I wrote

article

an

when

but

three

to

years

signs cf an econom'c re¬
cession had yet appeared. In that article,
published in December 1952, I took th3
position that a tax reduction of $2 billion
in
1953-54
and
cf
$5 billion
more
in
ago,

1954-55

the
in

no

was

possib'e, without preventing
of a budgetary balance

achievement
I

1954-55.

this

the

made

reservation

that

possible provided that the

was

favorable

existing

economic

cond:tion

throughout that period. What
happened? An economic recession de¬
veloped. And yet, in desnite cf it, the

foregoing
budget
than

not

a'most

expenditures

$10

pected;

billion

the

tax

effected;

cause

and

program

achieved

cf

come

the
un

bv

time
to

the

revenue,

as

$7

mora

I

ex¬

however, be¬
and

so

reduction

of

also

last

the

during

1952).

like

to

see

re¬

a

duction made in the Federal gaso¬
line

be accompanied

to

tax

by

sume

able to

would be

states

Most

a

as¬

larger share of responsi¬

a

bility for financing their highway

provided they could
additional
gasoline
taxes

in

levy
with

greater ease.
Summary

Such, in brief, is the program

successfully in

that has been used
Canada

they;

vital interest.

a

should

I

which

of

maintenance

the
have

corporate income tax for the
benefit
of
smaller
corporations
seven

of

which

reduction

tax

to

appears

enactment

to be worthy of

me

This is a permission
to corporations—particularly the during the forthcoming session of
to take effect some¬
small closely held corporations— Congress,
time
during
the
fiscal
year
to
capitalize their surpluses by
1956-57. If the greater portion of
paying a modest tax
(15% in
this program is enacted, we will
Canada). The company can then
have made
extraordinary prog¬
issue preferred stock or a stock
ress
toward a stronger national
dividend and later redeem the
or so.

years

with

stock in cash

no

further tax

economy.

liability to the stockholder. Under
our

system the stockholder has to

Schmidt, Poole to Be

capital gains tax when he
a distributed stock.
In

a

sells such

privilege of capital¬
surpluses has con¬
greatly to the self-fi¬
the

nancing of the corporations' and
to the growth of small business.
Mr.
Aboott,
the abie Canadian
Minister of Finance, has recentjy
proclaimed this provision to have
been the most significant factor
in Canada's amazing postwar eco¬
nomic

Open Saturdays

this
of

growth.

The third

duction

PHILADELPHIA, Pa.—The in¬

type of desirable re¬
corporate income

applies to the over-all tax rale.
The persent rate of 52% is much
too high. It is damaging our econ¬
omy in several ways:
(1) it en¬
courages
wasteful corporate

of

firm

securities

vestment

Schmidt, Poole, Roberts & Parke
announced that their Philadelphia
office located at 123 South Broad

henceforth

will

Street,

be

open

Saturdays although there is no

-on

trading

Parke

exchanges

securities

on

that day.: Schmidt,
&

the

in

Poole, Roberts
of the

members

are

Philadelphia-Baltimore Stock Ex¬
change.

partner of

Schmidt,

A.

Walter

tax

and former President of

the firm

Investment Bankers Associa¬

the

America, stated that the
to try the unique

of

tion

decided

firm

Saturdays

spending and makes for careless
management; (2) it deprives cor¬

idea of staying open on

the means of selffinancing, thereby slowing down
the rate of
capital growth and

large, and small investors
who
are
employed during the
week and ?s a result cannot give

porations

of

and

improvement

technological

"because

we

feel

there

that

are

many

the

time and attention to
personal investment prob¬

proper

their

The damaging

effects of the high
be concealed by
many factors responsible for the
continuing extra-ordinary buoy¬
ancy of our economy over the past

lems."

10 years, but their existence is
indisputable. The. rate should be
reduced to 45% or less, by means

each Saturday

tax

of

rate

of 1 to 2% a
gradual reduction in
the rate would not upset the Fed¬
eral budget abruptly and it would
help corporations to plan their fu¬
ture
financial
opera .ions
with
greater certainty.
The reduction
planned
Such

cuts

should

present surt:x
reduction in the
benefit

the

normal

rate

smaller

corporations proportion¬
than the larger ones.

ately

more

This,

tco,

sirable

at

seems

Act,

liberalization

left

be

under

need
now.

them to be sound.

undisturbed

effects

the

1954
further

consider

They should he
so
that their

growth
effectively observed.
on

capital

Desirable

In

the

field

of

2

Halle

in

Nubel,

York

member

&

of

Exchange,

Stock

will become

a

Stieglitz,

partner

52

Wall

Street, New York City, members
of the Stock Exchange.

Hill & Co. to Admit
CINCINNATI, Ohio

Wallace

Sarran, Jr., on Jan.

Stock

Exchanges.

With Paine, Webber Co.
(Special to The Financial Chronicle)

could

PASADENA, Calif.—Amanda J.
Nicoud is now with Paine, Web¬
ber,

Jackson

Garfield
war

&

Curtis, 50 North
Miss
Nicoud

Avenue.

formerly with J. Barth & Co.

Neal

Kellogg Adds

(Special to The Financial Chronicle)

Field

Federal

—

2 will be
admitted to partnership in Hill &
Co., Carew Tower, members of
the
New
York
and
Cincinnati
E.

Redu^m-s in the

Excise

the

Jan.

the

any

I

starting Dec. 10.

new

for accelerated denwp-

provided

Revenue

to be de¬

that

believe

allowances

ciaticn

on

New

this time.

don't

I

to me

A.

Robert

the

today at 30%,

will

invest¬

problem, will be available
firm's Philadelphia office

Halle & Stieglitz Admit

in the

The

.

the

at

any

normal

in., the

made

be.
than

22%.

ment

staff, fully

a

competent to handle

a

rate which is fixed

rather

Schmidt said

Mr.

-

may

year.

did

w-s
delayed by
("Federal Fiscal Policy in the
Future," Commerc'al & Financial

Chronicle, Dec. 25,

to take
responsibility for
the financing of these services in!
governments

full

the

over

bilhon

recession,

expectations

year.

Near

The

by

1954-S5

of

has

dot.

drooped

balancing of the budget
a

table

a

reductions

unexpected
to

local

and

the

then

continues,

been

given

be

should

type

the i

construction

terprise economy.

of

were

per¬

third, the
moderation of the existing double
tax;

only

any,

justified

were

If

because their non-ecoromic incen¬

tives

Three years ago

—

professional

in their efforts, it may be so
The

of

individuals

taxed to

balancing of

reduction

tax

a

help existing
compete
against

another

vo¬

This par¬
leave

It corresponding reduction in Fed¬
small eral grants-in-aid for highways.

larger corporations. It should add
strength to our competitive en¬

to

and

education

should

It would enable the state*

to

Consideration

action

businesses.

new

also

should

But

tie the

turbed.

types

portions of their prof¬
its for reinvestment.
It would

businesses

well

budgetary balance undis¬

tain larger

help to start

peculiarly
imposition.

is

own

Federal

This would en¬
corporations to re¬

smaller

ad¬
This

more

local

vocational

allel

successive steps.
able

local

freely.

their

cational rehabilitation.

for

limit

to*

in

but

and

state

use

(3) it keeps dividend rates down.

do little for the overtaxed

course

for

present $25,000 exemption
surtaxes to $50,000 in

the

of

order

in

not

relinquishment of
this tax to a corresponding re-!
duction in certain types of Fed¬
eral grants-in-aid such as those

The
raising

the

tax

to

I would

this time.

involve

enable

of

suited

second

our

at least three

should

first

ization

votes.

Desirable

to

now

need for

tributed

further

government,
of state and

Turning

to

type

Corporate Income Tax

Canada

of

in the

Reductions

Desirable

chiefly to cap'.ure the maximum

and

local

perity.

pay

ther centralization of

weakening

governments to
missions taxes

stampeded during an election year
into
tax
reductions!
designed

part

tain
*A
of

The contin¬

progressive abdication
by these governments * of their
responsibilities for self-financing

only in

cess

raise;an

ac¬

by

reductions

But

be

in

maintenance of high Federal
rates

tax

you

Debt Reduction May Not Need to

could

debt

con¬

reduction

a

complished anyway.

or

year

a

Federal

the

two from
is considerable. The recent
in

homes,

of

much

ditions

these

under

whether

me

cor¬

poor

federally

off the Federal

pay

the

individual and

of

that it opens the wa,y for
the
effective
strengthening of
state and local tax systems.
In a

debt, when by maintaining these

inflationary pressures
subsided
considerably, the

that

and

to

burdens

the

do man;

Federal

high

economy.

rates

both

producer,

little

make

to

me

us

porate tax pa.yer, that it gives re¬
lief not only to the federally

number

to

seems

the

and

lightens

Let

benefits

it

that

sure

consumer

well

a

reduction.'

tax

overtaxed

dispose

local

balanced

the

could

also

The achieve¬

balanced

a

after 25 years of practi¬
uninterrupted
Federal
budgetary deficits seems to me to
be a sufficient fiscal accomplish¬

more

and

resolve that it be

also

us

cally

dividuals

n

and

worthy fiscal objective
the objective of reduction of
the existing huge national debt.
However,
I see no compelling
reason
for attempting
debt re¬
of another

another tax reduction, let

to have

budget

re¬

that

so

time

—

ment

It

be

duced

this

at

duction at this time.

Fed¬

eralism.

would in¬
terfere with the accomplishment

taxation

encourage¬

proposal of having
another round of tax reductions at
the

to

this time.
The

lends

reductions

ment

—

consumers

order

the

experience of these recent

The

tax

the

duction, as it may have to be,
plans should be made to include
inem surely in any succeeding tax
reduction that might be instituted
under conditions of general pros¬

of tax reduction at

Desired

Be

To

tax

'

of Tax Reduction

The Type

admissions

relieve

great source of Federal revenue
—the corporate income tax—I see

proof to that effect;

any

limit; permission to
corporations to capitalize surpluses by paying a modest tax;
and planned gradual cuts in the over-all corporate tax rate, to
permit sound planning for their future financial operations.
Also suggests reductions in the excise field, to include admis¬

not

are

If this group is

bypassed in this round of tax re¬

cannot furnish

they

but

rewards

the

worth the effort.

types

results;

that

cide

of
tax
reductions
which they advocated at the time
would have produced even better
other

raising of corporate surtax exemption

a

people contend that the

But some

Advocates rise in personal exemption;

by local governments.

right

the

of tax reduction?
The lesults seem to indicate that it was.

it is much too high for normal operations of our free
for balanced federalism, and for adequate financing i

pressures,

in¬

on

type

reduction in Federal taxation in 1956-1957,
that with lessening of inflationary

a

tax

this

Was

vestments.

Y.

Studenski maintains

Dr.

income

corporation

Emeritus of Economics, New

Professor

Director, Graduate Program in

accelerated de¬

the allowance for

Tax Reduction Is in Order
By PAUL

dividend income and

of

taxation

i

Thursday, December 15,1955

..

.

(2550)

excise

taxation, I should like to see the
Federal Government abandon the

WOODLAND, Calif.—Frank H.
Faton has
H.

joined the staff of Neal

Kellogg,

185!/2

First Street.

.

I

Volume 182

I

Number 5490




.

.

.

The Commercial and Financial Chronicle
r>'

■

27

(2551)

>f

•r

One of the most potent de¬
in
fense weapons nov^

by

Navy is

out

a

use

supersonic, rock¬

et-propelled, guided-missile called
the "Terrier",. Well

of

this

electronically-controlled

"watchdog" is
and

enemy

named, the job

before he

track down

to

put

him

an

of action

out

strike.

can

Working in close cooperation
with the Armed Services

guided-missile,

Philco

on

this

research,

engineering and production have
\

made
its

important contributions

development. This has been

particularly
1

ii

in

true

*

r

connection
'

•

with the

•

to

proximity fuse, the mech¬

anism which extends the effective

target

the

w

and

range

"Terrier"

to

moment

enables

demolish

it

gets

an

the

aircraft

in the vicinity

of the marauder.

From

W

the

first

sketch

to

the

final, super-accurate mechanism,
Philco
this
i

pioneered and completed

assignment in cooperation

■

with

the

Navy. Philco's world

famous scientific
skill is

a

knowledge ancb

continuing factor in the

-

development of tomorrow's de¬
fense for your
morrow's

better
4

-mut

CORPORATION

'

protection

quality

...

products

to¬

for"

peacetime living through-?1

the world.

'

28

The Commercial and Financial Chronicle

(2552)

better
ance.

Boosts Anto

gift

Industry

By W. J. SIMONS*

that says
you

Treasurer,

thought

products.

,

of

in automobile sates to normal

A

appreciate the more people have been buying so
many
more
we en¬
things.
They
also
not have been make it a virtual certainty that

We all know and

B'

the

fact

joy today
developed

unique
'W

oped and

S:
•
..

all

This

-

is

economic

almost 3 million. At this rate, we
are
in
effect populating
a
new

an

important
•

-

-

city, the

point. Much is
J'

months.

s

a'i d

t h e

; days,
but
too 1 i 111

is

s e

that

ment

f.
*

tremendous

force

in

the

second

to

is

force

the

the

suburbs.

mover

This

is

a

phenomenon familiar to all of you.
J.

W.

from it.

comes

expanding population alone

a

The

is

said about the

good

of Chicago every 18

American market.

all
e

size

t

The

about

d ^ b t

.

con¬

activity,—is people
more people. Our population
expanding every year. In the
last 12 months alone, it increased

t h e

at

will

is

time.

same

expansion

and

pro_

duced

I

market

the long run.
The first force—and the basis of

devel-

been

pourer'

this

tinue in

ing had not

pin point

w

;}:c,

the

financ-

ment

I

would
and produced

tool of install¬

built-in

m

automobiles

that the

Simons

It

has

made

us

things—and

need

more

more

of

of

This thought
struck
me
quite

many

other

mower, rapid transportation, new

forcefully the
day when I recalled an incident from the life story of Walter P. Chrysler. In 1908, Walter
P."Chrysler attended the Chicago
Auto Show and was so taken by
.the beauty and mechanical sturdiness of a Locomobile touring car
that he became one of the very

.

first to finance

automobile.

an

It

new

things;

The

many

lawn

power

schools, churches, roads and
countless other things.
The trek to the suburbs is a
market force that is ilustrated by
the fact that between 1953 and
1955, there has been, a 60% increase in the number qf families
owning

two

or

cars;

more

over

co$t $5,000. Mr. Chrysler paid $700 I tz million increase in total car
down and borrowed $4,300 right demand-from this source alone,
hete in Chicago. His income at
The third dynamic force \s the
.

that time

$350 per -month and
the $700 constituted his life savings.
*

This

•

was

loan —deemed

at

the time—was

in

Mr.
Now

so

sumer

innovations

Happily,

long

.term

evident.

the

American r con¬
is confident of the future.

vis¬

the

This was brought out by a. recent
technological survey conducted by the Survey
advance which play such an im- Research Center of the University
portant part in this whole inter- of Michigan. The preponderance
related picture. Technological re- of the high and middle income
search has made possible not only families had confidence. The op¬
many new consumer products and timists
timists outnumbered the pessiinnovations—such as push button mists—16 to 1.
driving—but has permitted a
Thus, this important group of
steady rise in productivity and consumers has the propensity as
employment.
well as the ability to spend.
Our new Plymouth engine plant
Is there anything peculiar about
is an excellent example of this the 1955 or the 1956 outlook for
cycle.
the automotive
industry which
The public demanded V-8 en- makes this confidence misplaced?
gines beyond the capacity of PlyConditions for the sale of 1955
mouth
to
provide them. Plans model cars have been predomiwere made and a 50 million dollar
nantly favorable, and record sales
plant placed in operation in half have resulted.
'
the time customarily needed.
•
>
.The very newness of this plant
1955 Not An Abnormal Year
makes it the most modern in the
Some say that 1955 is ail abindustry both as to efficiencv of normal year and that production
operation and quality of product, and sales of automobiles for 1956
Plymouth has satisfied the ini- must be lower. On the contrary,
tial V-8 engine demand with a it is more true than not that 1955
better engine which, in turn, has was the first year in the entire
increased demand still further. As postwar period that the industry
a
corollary affecting personal in- and the economy did not face subcome, employment is up.
stantial, abnormal conditions of
Thus we see the complete cycle, one form or another.
This steady rise in productivity
It is the first year to give confrom technological advance is, of crete evidence of the underlying
course, a driving force behind the strength of consumer demand for
steady rise in personal income.
automobiles. It is the first year
These long-run dynamic forces that basic consumer demand was
—upsurge
in population, move- able to express itself,
ment to the suburbs, great rise in
It was inhibited in the past by
personal incomes, high levels of many factors: material shortages,
liquid assets, and rapid upgrad- governmental controls, production
ing of consumption habits — are limitations and distorted distribuible

with

■:0my
$wM-

the

are

of

spur

These

with confidence.
%m'Wk

of

trends which

ther.

demand, official of large auto producer expresses
fear of ill effects of the record value of automobile paper

dustry in 1956, and finance companies can face the future

fA

stabilization

competition—tend
to upgrade consumption still fur¬

outstanding.- Foresees favorable outlook for automobile in¬
%v.
zWM/:'/,

In turn,

standing of the harvest of opportunity the future holds,
j
Such a lack of understanding
upgrading en- may breed a lack of confidence,
bring out more This must not happen!
and
improved
An understanding and confident
the innovations approach to the future is an essenproducts
and tial ingredient to the short term

models introduced under the

sharp

con¬

ditions, which have given the first real expression of basic
no

of

business—new

new

consumer

about it

process

courages firms to
and
more
new

Chrysler Corporation

After ascribing the increase

.

.

inis

the corporate

Thursday, December 15,1955

..

improvements, new designs,
quality, greater perform-

new

Gonsnmer Demand

.

-

evidence

of

are

-

,

,

powerful

and

continuing

under-

tion.

■

'

increase and. change in character lying forces.
Gross National Product which
of the income of our American
They have created and will con- was at an annual rate of 367 bilfamilies.
■
tinue to create expanding oppor- lion dollars, as we entered 1955,
The growth of personal

"madness"

income

tunities for everyone!

is approaching 400 billion
dollars.
Personal incomes are high and
continue to grow. The annual rate
of $292 billion at the start of 1955
now

turning point and, particularly, the growth of
To reap the harvest of these opChrysler's life.
the middle income group has been portunities, sizeable expenditures
I don't claim that the fi- a
significant
development
to of a capital nature are required,
a

nancing of every automobile will
have the significant results that
this particular loan had. However,
we must always bear in mind that
every purchase of durable goods
does have many, many salutary
effects upon the individual and
the community.
Your financing of the sale of

watch. Since only 1950, the num- By Government
for roads and
ber of families in the $4,000 to -schools'—; by industry—for plants at last reports stood at $307 bil—
$7,500 income bracket has grown and research—; by: individuals— lion.
by over 4 million. These families for homes and automobiles.
The tax situation for 1956 looks
—19 million of them—now earn
In niost cases ihOse capital ex- as favorable as it was for 1955—
40% of total personal income— penditures must be made in ad- if not more favorable,
double the share they accounted vance of the harvest and must be
New and used car inventories

automobiles to dealers and to the

income

—

.

paid for out of the proceeds of the
This is a revolutionary shift in harvest. The tool of credit makes
_

.

,

stratification.

...

are

currently at

a

most reasonable

level. In particular, Chrysler Cor-

Its full im-

this possible.
poration dealers entered the 1956
pact only begins to be appreciated
it has always been thus for gov- model
year
with
a
minimum
when we think of the higher and ernment and industry. It is just as carry-over of 1955 models,
of consumer credit, total install- higher proportion of each dollar reasonable
and necessary for in-t
All of the long term upward
ment credit and automobile paper that still remains after these fami- dividuals.
trends are evident at this time,
are at an all time high.
You in lies pay their taxes and purchase
Consumer installment debt for More and more families are get-

public is

a

vital economic service,

As you well know, the volume

BEAM'S
BOTTLE

PIN

with the unique

their food,

clothing and shelter,
durables is largely self-liquidating ting into the two car class. New
driver-owners
continue
have more people with just as in business,
coming
records.
;
greater and different buying rePayments for»an automobile not into the market.
Should you be congratulated?—
The average age qf cars on the
quirements; with more money to only eliminate other transportation costs, but increase the pro- road
Or, should you be criticized?—
spend.
continues
high—6
years,
My natural reaction and im¬
ductivity and pleasure of the in- There will be more cars in the
Expansion of Consumer
pulse is to congratulate you. But
dividual.
2 to 4 year age category in 1956
Expenditures
then I hold myself in check when
Payments for the refrigerator than there were in 1955. Owners
A fourth and significant force eliminate the
I recall that you have some people
daily cake of ice.
of these cars traditionally buy
this

room

have

played

an

im¬

portant part in establishing these

built-in

we

in the continued expansion of con-

worried.

"pin point pourer"

Thus,

most of the

new

cars.

myself, "Is there sumer expenditures—is the rising More Automobiles Will Be Bought
The number of cars ready f0r
reason to worry?" "Is business too
level ot savings. Bank accounts
The results of these expanding the scrap heap continues to be
8 OR 10 YEARS OLD good?" "Are consumers borrowing and savings bonds are in amounts opportunities, as far as you and I high. The 1956 replacement maron the future?" "Must everything
never before approached. It is es- are concerned today, have been ket should be good.
A corporate gift doesn't have to that goes up, come down?"
timated that one out of every five that more automobiles will be
be

a

sent.
on

thoughtless "routine"
Every customer

your

or

Then

I

ask

Are those who

colleague

I

think

Pin Bottle with the unique,

dis¬

A Revolution

uv

bottle closure

in

Consumer

Demand

America has been undergoing a

tinctive "Pin Point Pourer" that's revolution
usui,

postal

savings

and

bank

in

consumer

will

paper

be

than in any

demand all liquid assets,

a

total of 46%

total -approximately

14.8

billion

and in consumer income. There billion dollars. This backlog in dollars.

'are

expanding opportunities that savings bonds and bank accounts

ha^e noi been ,fully rec°gnized.
you have

Positive

created this year
Thus, all the important factors
prior year.
for the 1956 outlook in the autoOf even greater significance is
At the end of 1955, automobiles mobile industry are positive. The
the fact that families in the mid- on the road will approximate 51
only shadow is apparently the
die income group have 30% of million, and automobile paper will feeling of a few that "things just
accounts.

gift list will appreciate

•Outlook for Auto Industry is

- .consumershas$2,000 ormore in bought this that' more" automobile
year than in any prior
the form of liquid assets: savings
year and
bonds,

not!

the handsome tribute of Beam's

built riVht in to the
wimu

"Yes"

pre- these
answer
to
sobering questions right?

—fosters the confidence of these

By

1960,

there

will

be

many

can't be that good, somehow!"

Their concern seems to center
around the record volume of auto-

mobile paper outstanding and the
fear that terms are becoming unwin certainly be higher—backed, sound.
BEAM... Distillers of the World's required—the credit fully justi- better houses, automobiles and 0f course, by increased savings
While consumer debt has inFinpfst Bourbon for 160 Years
fied by tbe *ncomeother durable goods. Many of and income.
creased, consumers continue to
What
are
these
revolutionary these middle income families are
Curiouslv it is more difficult to maintain a strong financial posiWnrthv nf Your Trust
vvuruxy ui xuux xxu&i,

done

granting

the

credit

your

the

3ob by mlddie income families and endemand courages spending for newer and

1Purchases to

KENTUCKY STRAIGHT BOURBON WHISKEY

Well, there are five of partieusignificance. These five dynamic forces are long term trends.
BEAM DISTILLING CO.
They help to explain why so many
86.8 PROOF

JAMES B.

lar

CLERMONT. KENTUCKY




conserve their savings.
Spending
-has
The

speak,

Amfr?rindFfn%-ceMConf^enLbecTnve^
/">»•_

r?i

tion, Chicago, 111.

a

m0re millions of automobiles on
the road. Automobile paper, too,

estimate short term trends
j
term oneg
Prodllction

than
con_

borrowing sumption and income always vary
base.
day
day from averages, but
force,
of which I there is no reason for these variathe unparalleled pro- tions to become extreme in their
as well as

firm
fifth

is

"on. Their liquid assets continue
to grow. The ratios of their debt
liquid assets and income are

sounc^
It is interesting to note that
while automobile paper will have

pensity of Americans to seek and annual effect unless they become increased some $4% billion during
nnnnnt
-fiirfVlOT*
nf
hnltf
new products. They want accentuated by a lack of under- 1955, a further increase of only

accept

nnur

mnnt

J

n

^

t

A!

r\

v»

1

o

ll^fTPQCO

t| wefrvj

-^4m-:^( v* wu

<*"

vk{<y!" '?rr >r,t t

v'tf

*m'j'r

Volume 182

Number 5490

.

.

.

The Commercial and Financial Chronicle

$1% billion will support automo¬
bile sales in 1956 equivalent to
1955.

and Western Siberia and Kazakh¬
stan.

Chicago Bond Club to

'

His

Hear Prof. Johnson

Average terms have lengthened,
is strong evidence that

but there

the American

tinue

the

will

consumer

tradition

paying his

continue to be very low.
Whenever I question an indi¬

financing institution

a

this particular point, he always
confident of the soundness of

is

his

portfolio. His only worry

own

<—is the other guy.
I have been talking about con¬
fidence1 in the future. We at Chry¬
sler

have

that

confidence,

and

small part in

credit plays no

our

plans.
We have
of

already borrowed half
100-year loan

$250

a

million

commitment, which

have from

we

the Prudential Life Insurance

Company.

We

will

luncheon

a

of

rates

vidual from

CHICAGO,

con¬

bills. Repossession and deliquency

on

(2553)

borrow

an¬

111.—There

will

be

meeting of the Bond

Club of Chicago,

11,

1956,

at

Wednesday, Jan.
12:15 p.m., in the

Red Lacquer Room of the Palmer

House.

Guest Speaker will

Johnson.
a

Professor

tural

Problems

which made

a

J.

ler

opportunity to invite guests
charge of $3.75 per person.

a

Reservation
Jules F.

farm

to

sent

to

ANGELES,

The group visited
collective and state farms, experi¬
ment
stations,
and
agricultural
machinery
and food-processing

210

Calif.—Dane

with

now

West

J.

Logan &

Seventh

Street.

Ukraine,

the
the

Moscow

Volga

area,

the

region,

the

central Asiatic part of the U.S.S.R.,

Whitney, Jr., of Dempsey-Tege¬
&

With E. F. Hutton Co.

bers also elected Wm. D. Wither-

Witherspoon & Co., Inc.,
as Secretary, Francis D.
F'rost, Jr.,
of
Hemphill,- Noyes & -Co., as
Treasurer, and Walter E. Law¬

of

ANGELES, Calif.—George
Green, Jr. has become affili¬

pany,

with

E.

F.

Hutton

&

Com¬

623 South Spring Street.

the

business

Layton is

Club

fice
In

to

his

the

of

turned

over

President-elect

first

address

cur¬

to

-j

»->

*

n

Colo.

now

operations,

systematically
capacity. This

—

putting well
our

LOS

with

J.

Barth

Seventh Street.

previously

members,

and

with

&

Co.,

Coombs

Marache, Sims & Co.

This

are adding
productive
alone we are

year's

plant

expansion.

physical

growth is
only part of a pattern of physical
expansion that has been going on
in the pest war period.
Future plans call for more than

$1

billion

to

expand

in the

searchon

gas

electronics

and

five

next

plants

and

years

push

turbine
nuclear

re¬

engines,
and

solar

energy.

In addition to

sion

million

in

1955 to

1956

This

flight sweep models.
the responsibility

measures

feel

to

of

for

expan¬

we

our

demand

we

plant

our

invested $175
change-over from

program,

traditional

American

public
styles, innovations, and
safety and performance

new

greater

features—a

responsibility to con¬
and develop¬

tinue

the

ment

which

much to

the

meet

the

research

our

has

contributed

so

high American stand¬

ard of living.

You in this
real

a

the

room

entitled to

are

of gratification

sense

part

have played

you

from
this

in

whole picture. You have met your

responsibility

the

to

American

You have made it pos¬

consumer.

sible for

people who want things
and ajre willing to work for them,
to enjoy them. You will continue,
I

know, to grant credit appropri¬

ate

the

to

individual's

stances,

on

maintain

a

the

debt,

between

between

will

relationship for

proper

consumer

circum¬

which

terms

value

income

and

and
pay¬

ments.

It
to

has been

with

lunch

wih

ture

a

genuine pleasure
I face the fu¬

you.

confidence

in

no

small

part because I know that we have
a sound ally in you and your sales
finance companies. I face it with

This reversing-type
and

confidence because I feel that you
share that confidence, and I know
that

will meet

you

sibilities
sumers

We

with

to the

as

confidence

it

is

a

expanding opportunities.

i,.

.

'

<

Joins

(Special to The Financial Chronicle)

CITY,

1839

can

middle west!

In

a

will

few

Avery L. Eppler Company,
Broadway.

and

current

expansion and improvement program at the

an

engineering dream

copper-alloy cakes weighing

modern

plant is ideally located

industry in the Middle West for

come true.

up to 3,000

to meet

copper

of

Rex

Jr.

has

joined

Merrick

&

the

Co.,

22

Second Avenue.

to

handle copper

the growing demand of

and

copper

Its

SAN MATEO. Calif.—Hamilton

Able

pounds, this ultra¬

completion will mark

alloys in the form

sheet, strip, rod, tubes and drawn products.

Joins Rex Merrick

Townsley,

(■«-**> M,' K&t*

to

Kenosha, Wisconsin, plant... one of the largest copper and brass mills

The result will be

Califs-Les¬

(Special tc The Financial Chronicle)

staff

gage
up

months, Anaconda's subsidiary, The American Brass Company,

complete its

of

E.

copper

handle cakes weighing

3,000 pounds.

lie C. Green has become affiliated
with

It

in the United States.

Eppler Staff

REDWOOD

process.

con¬

ours.

because

hot breakdown roil reduces

alloy cakes from 6" thicknesses to .440"

one

respon¬

jointly face the future

can

future of

your

American

plan to meet

we

in

Anaconda is

advance in Anaconda's copjpany-wide

one more

expansion and improvement

program.

Through such accomplishments,

constantly increasing its ability

in the non-ferrous metal and

to serve

American industry

metal-product fields.

55239b i Rev.i

Dempsey-Tegeler Adds
(Special to The Financial Chronicle).

The American

LOS

ANGELES,

B. Peters

have

and

been

Calif.—Ralph

added

to

the

staff

of

Dempsey-Tegeler & Co., 210 West
Seventh

Street.

previously

with

Mr.

First

Company.




Peters

was

California

Brass

Company

Anaconda Wire & Cable Company

Virginia N. Weber

Andes

AnacondA

Chile

Copper Mining Company

Copper Company

Greene Cananea

Anaconda

Copper Company

Aluminum Company

Anaconda Sales Company
fAia.fi/ifjAn/tf

Smoliina

and

210

Refimna

ContDOO Y

West

Mr. Klahorst

$130 million into

of

S.

ANGELES, Calif.—Robert

our

over

program

Robert

C. Klahorst has become associated

we

to

year

-

with J. K. Mullen

other $62*/2 million during 1956.
With
these
funds
and
funds
from

-

Joins J. Barth Co.

his of¬

Whitney.

»

(Special to The Financial Chronicle)

meeting, Bond

activities

-

Co., U. S. National
Bank Building.
Mr. Layton was
formerly with Forbes & Co. and
Sidlo, Simons, Roberts & Co.

D. Ryons,
Lester, Ryons & Co., reviewed

rent year, and

r

Investment

President Joseph

Bond

♦

DENVER,

rence, of J. Barth & Co., as Direc¬

Club

(Special to The Financial Chronicle)

ated

mem¬

.

(Special to The Financial Chronicle)

elected President

was

Ballots of The Bond Club

At

R.

Co.,

>

-

Now With J. K. Mullen

Calif.—Lewis

ANGELES,

high level in 1956.

a

'

tor.

LOS

in

*

of The Bond Club of Los Angeles.

problems.

plants

President Whitney promised con-,
tinuation of Bond Club activities
at

spoon, of

(Special to The Financial Chronicle)

LOS

10,000-

study

be

J. Logan Adds

was

Co.,

1955

should

Cann, Lehman Brothers.

Wagner is

of

LOS

at

in

summer

"Agricul¬
Prospects in

and

Los Angeles Bond Club
Elects Officers

of the

mile unofficial tour of the U.S.S.R.
the

be

Members may avail themselves

be D. Gale

Johnson

will

the U.S.S.R."

member of the 12-man American

delegation

subject

29

&

was

Co.,

BO

The Commercial and Financial Chronicle

(2554)

THOMAS

ANGI.IN,

In Attendance at IDA Convention
ABBE,

RICHARD

Interstate

Securities

Corporation,

Charlotte

ABRA.MS,

ADAMS,
With

JAMES

A.

S.

EDWARD
Clement

ADAMS,

A.

WILLIAM

R.,

A.

Mrs.

Evans, Atlanta

ABBE,

JOHN

Allyn

ALTGEI.T,

Coffin

Group, New

Bank,

Burr,

Chicago
New York

WILLIAM

ASCHER,
Wm.

ATKINS.
S.

Securities

Distributors Group,

A.

Granbery, Marache & Co., New York

&

Mrs.

*JTs

>

& Co.,

Jones

&

New

First

National

Raleigh

AUSTIN,
J.

W.

Barrow,

New York

Nashville

BARRY,

&

Co.,

Toledo

L.

&

New

Co.,

New

Beil

&

Hough,

Greenshields &

BENNETT,

Shreveport

United

Baker.

Coppct & Doremus, New York

Co., Montreal

CHARLES

States

R.»

Investor, New York

P.*

New

PHILIP

BENNETT, FRANK S.

York

Plummer & Bennett,

K.

Whipple & Co., Chicago

BENZING, WAYNE R.

Bass & Co., Nashville

WILLIAM

New York

BENT, GORDON

V

BASS, Jr., JACK M.
Jack M.

St. Petersburg

BELL, RUSSELL D.

Bacon,

BALE IE,

1

Dallas

BEIL, Jr., FREDERIC C.*
York

RUSSELL*

Wood,-Struthers & Co., New York

York

.

THOMAS

Jr.,

BEECROFT, HARRY*
*
*
Beecroft, Cole & Co.,'Topeka

City Bank, New York

Co.,

,

L.

First Southwest Company,

Cutter,
•

Montreal

York

BECKETT,

Co., Baltimore

EUGENE

EDWIN

New

Leary & Co., Shreveport

BARTOW,

Co., Atlanta

BABCOCK, RICHARD F.*
De

&

With Wm. Russell Barrow,

AVERELL, ALFRED B.
&

BECK,

BARROW, Miss, SIDNEY

York

f

& Co.,

Watling, Lerchen & Co., Detroit
York

IIOLLIS*

J.

Tir.dall

R.

WILLIAM J.

B.

CHARLES S.

WM.

Beaubien

G.

BECHTEL, CHARLES C.

Commercial & Financial Chronicle,

Harry Downs & Co.,

Charlotte

Shields

Corporation,

II.

& Co., New

Harris

BARRING TON,

Miami Beach

& Co.,

L.

Winnipeg

BARNETT, GEORGE E.*

WILLIAM 1

Co.,

BEAUBIEN, ANDREW S.

M.*

&

M.

Hayden, Miller & Co., Cleveland

.

Co., New York

ROBERT

)

AUCHINCLOSS, REGINALD L.

Equitable Securities Corporation,
Mr.

Jr.,

Company, Milwaukee

CHARLES

Jr.,

BAXTER, DANA F.*

D.

ARTHUR

R.

BARROW,

Eache

ANDERSON, Jr.,

E.

Pollock & Co., New York
V" ■„ j
**■+,■ *
J. MURREY*

Dickion

ATWILL,

Strudwick, Richmond

ANDERSON, HERBERT

BANEY,

'

New York

.

Louisville

ALEXISSON, GUSTAVE

ALBERT

II.

E.

D.

Weld &
RALPH

Stran„han,

Pittsburgh

D.
>

8*

Boston

Courts

Carolina

O.

& Co.,

New York,

Milwaukee

Baxter, Williams & Co., Cleveland

Co., Chicago

Morgan Stanley

W.*

GEORGE

Jr.,

Cohu & Co.,

ANDERSON, GLENN E.

C'Neal, Alden & Co.,

•Denotes

ARTHUR,

The

v

James Richardson & Sons,

New Orleans

Arthuis, Lestrange

EDWARD C.

Anderson &

THILIP

BAKER,

WILSON*

&

BANCROLT, E.

Atwill

ANDERSON,

BAKER,

Corporation,

BALDWIN,

Boston

W.

Becker

G.

ARNOLD, WARREN D.*
F. S. Moseley & Co., Boston

J.*

Loeb & Co.,

A.

White,

ANDERSEN, JONAS C.

Louis

Jr.,

E.

BAIRD, ANDREW M.*

ARTHURS, ADDISON

ANASTASIA, ALBERT A.
'
Wall Street Journal, New York

Kuhn,

WALTER

&

Metropolitan St. Louis Company,
ALDEN,

Jr.,

Co.,

Hanseatic

BAUMANN, JOHN F.

Pennsylvania Banking & Trust Co.,

BAXTER,

GEORGE H.

Arnold & Crane,

W.
&

York

R.

York

W.*

Rockland-Atlas National

AINSWORTH,

C-

JOHN

Firct

Philadelphia

T.»

York

ARNOLD, H.

Allyn & Co., Chicago

AMAZEEN, EDWARD

Leach, Birmingham

I..

Distributors

AHEARN, JOHN

St.

New

Harris Trust & Savings Bank,

M.

RUCKER

Sterne, Agee &

C.

KAGGS, HENRY M.

L.

Washington

coe,

ALBERT

Coffin & Eurr, Boston

New

RAY

Ray Allen & Co., Chicago

ALLYN,

Eraun, Bosworth & Co., Detroit
AGEE.

E.

E.

ALLYN, ARTHUR C'.

Ailen & Co., New York

'

Leedy, Wheeler & Alleman, Orlando
ALLEN,

S.

&

ARMSTRONG,

ALLEMAN, F. MONROE

F.

Ehearson, Hammill & Co., New York
ABERNATHY, R.

Mackall

ARM1TAGE,

Thursday, December 15,1955

...

Granbery, Marache & Co., New York
E.

Simor.ds & Co..

Detroit

BERGMANN, CHARLES

1
-

R.

W.

L.

Pressprich & Co., New York

BESSE, HARRY W.*
Boston Stock Exchange, Boston
BIANCHI,
Cohu

CHARLES

&

Co.,

[

A.

York

New

BINGHAM, CURTIS H.*

Bingham,

waiter & Hurry, Los Angeles

BLACKFORD,
A.

M.

Law

BLAIR,

Jr., HENRY J.

&

Co., Spartanburg

BOWEN

Wiiham

&

.!

,

,

Blair

Chicago

Co.,

BLAKE, JOHN L.

j

Eaton & Howard,

BLAKE,
H.

The

SIDNEY

M.

]

Boston

S.*

J

Byilesby &c Co., Philadelphia

BLEIEERG, ROBERT M.

FIRST

Barron's

BLYTH,
U.

NATIONAL CITY BANK

Publishing Co.,

ROBERT

S.

York

New

B.

Treasury

Department,

Washington

BOF.IIMLER, ERWIN W.
In-estment

Bankers Association,

Washington

[

BOLES, EWING

York

The

ofNew

Ohio

BOLGER

T.*

t

Company, Columbus

JOHN

F.

[

Shillinglaw, Eolger & Co., Chicago
BOOTIIBY,

Jr.,

MILLARD

II.*

Eastman, Dillon & Co., Philadelphia

BOWEN, FRANCIS
Government Development Bank,
Rico

Puerto

BOWMAN,
Chase

FRANCIS

Manhattan

2

B.

Bank, New York

BOYCE, C. MEREDITH*
Mercantile-Safe

Deposit & Trust

Company, Baltimore
BOYD, T.

f

t

HENRY

Blyth & Co., New York

State and

|

|

EOYNTON, ELWOOD D *

r

Hallgarten & Co., New York
BRADFORD, J. C.
J.

C.

Bradford

BRADLEY,
Eaton

&

Municipal Bonds

Nashville

Co.,

Howard,

BRANCH,

]

Electric

-

|

_

|

Institute,

BRAUN, Jr., FREDERICK
F. S.

"

[Boston

HARLLEE*

Jr.,

Edison

\

&

WHITNEY

S.

Atlanta

|

C.

Moseley & Co., New York

BRAUNS,

ROBERT A.

McDonnell

&

BRAYSHAW,

{

W.

Co., New York

DONALD

x

B.*

\

Lord, Abbett & Co., Atlanta
BRECKENR1DGE,

HUNTER*

McCourtney-Breckenridge & Co.,
St.

Louis

'I

-.

BREWER, ORLANDO S *

-

Phelps, Fenn & Co., New York
BRICK, JOHN
New

.

,

&

S
York

New

Co.,

Laurence M.

Marks & Co., New York

Hutzler,

BROWN, LAWRANCE A.
Jenks,

Kirkland

New

York Times,

Head Office:

.

Philadelphia
"

New York

BRUSH, GERALD F.*

55 Wall Street, New York

,

Chicago

.

Grubbs,

&

KENNETH C.*

BROWNE,

mm m mm a m mmmm m mt

i

BROPHY, JAMES G.

BROWN, HARRY
Salomon'Bros. &

;

TELETYPE NY 1-703




H.*

Co., Hartford

BROWN, CARL C.

Department
,

&

BROOME, ROBERT E.»
Guaranty Trust Company, New York

Blyth

#

J

*

JOHN

Putnam

'

j

York

BROOKS,

Municipal Bond

V

-

Jackson & Curtis,

Webber,

Paine,

BRYAN, JOHN E.

.1

'

.

Slocumb & Co., San Francisco

Brush,

Cleveland

Plain

Dealer* Cleveland

BRYAN, JOHN F.

.'

Smith,

73 Branches in

BRYANT,

EMMONS

Blair

Greater New York

New York

& Co.,

Barney

Co.,- New

&

BRYCE,

j
York

.

{

JERROLD

T.

Clark, Dodge & Co.,. New York
BUECHLER, RICHARD
E.

Member Federal Deposit Insurance

Corporation

Hutton

F.

BUCK,

Fund

Putnam

,

A.*
Distributors,

Boston

HUGH

BULLOCK,
Calvin

K.

Co., New York

&

RICHARD

Bullock

Ltd., New York

BUNN, Jr., JOHN F,
Bioren

BURNS,
F.

&

n,

Co.,

Eberstadt

BURNS,

Philadelphia

EDWARD
&

Co.,

New York

Jr., JAMES F.

Upham & Co., New York
BUTCHER, W. W. KEEN
Butcher & Sherrerd, Philadelphia
Harris.

BYRNE,

EDMUND

Byrne &
t

CAHN. Jr.,

C.

Phelps, New York
WILLIAM M.

Henry Herrman & Co., New York

Continued,

on

page

116

Volume 182

Number 5490

.

.

.

The Commercial and Financial
Chronicle

31.

(2555)

t('> f'£

The

Confronting the IB A

IB A

has

conferred

the

By GEORGE W. DAVIS*

highest honor of the security in¬
dustry upon me—a native son of
California
President
•

1956.

I

this

<

making

me

your

I

within the industry itself.

that the

you

prospectus, and advocates

.duties of the
-office will

properly
filled.

fornia

who

W.

v-curje

DciViS.

with

me

the

Already the

coopera¬

tion and enthusiasm of these col¬

leagues for the objectives of the
IBA

have

been

manifested

in

many ways in recent weeks—and
I know that this
cooperation will
continue through the year.

Sixteen years ago another Cali-

fornian, Jean Witter, took his oath
of office as President of the IBA
and

performed outstanding serv¬
ices to this great
industry. While
I am,

therefore,

fornia

aided
ance

your second Cali¬

President

and

to

am

be

by the pattern of perform¬
made

by Witter,

I

am

the

first of all Presidents of the IBA
to

bring this organization

the purview of

Had your
.

an

ment

under

"all seeing eye."

Nominating Committee

""Inaugural address
44th

Annual

Bankers

sponsibility
fied

share

satisfaction
of
having the
"residence address" of the IBA in
State.

have

beloved

our

as an

for with both of

real

our

upon

could

Dick

of Blyth & Co., in San
Francisco to join me in this re¬

security

dealers

they

Pontig

dozens

other Cali¬

known,

called

lit¬

are

erally
of

only

a

There

to enter the

y

this

honor v
1 one.*1

great

be taken

means

of Mr.

Convention

of

Association

Davis at the
the Investof

Hollywood, Fla., Dec. 1, 1955.




America.

having modi¬

ophthalmic

could
IBA

equipment, we
jointly provided the
normal set of optics.

have

with

There

a

is

better

no

."right now" to
and

the

to

excellent

has done.

No

covered the

office

and

will find unanimous ap¬

you

solely

mean

stresses the value of creat-"

always

ago

he

which

President

he.

he
has

or

con¬

Walter

was

Philadelphian. Years

worked

the

IBA

modicum

and

up

down

of

California banner here.

Speaking of aides—and of Cali¬

be

administration

add

only
adjustment

a

our

industry.
problems

Some of
pertain

and some

us

small

in¬

our

broadly

only to

There

cer¬

of this country, a Godsend to the
public, and an outstanding credit
men now administering the
SEC.
'

to the

From this single

detail a lesson
clearly to light—that even
though 20 years may elapse before
a
simple and sinless method of
selling securities may evolve for
comes

membership, we must exercise
patience and cooperative insist¬

our

associates

our

in

gov¬

ernment

tail

have

been

made

are

help, particularly to the
dealer

in

his

of
re¬

relationships

with the public.

At the IBA

Washington

on

year

better

Public

The

is

matter

public relations
phase of association activity

a

which

benefits

industry

all

alike.

segments

of

the

attaining such a device and that
compilation of implementing

many years there is still too high

the

and Eaton

Taylor

add

moral

their

process

of

can.

me

all of whom

support

induction

ready to assist

they

—

re¬

and

to

this

stand

in any way that

has
can

or

rules would be placed
high

agenda

for

condensed

the

SEC.

circular

to

become

accomplished fact during
would

be

a

on

Were

the
this
an

1956, it

boon to retail dealers

banking

complete

co¬

that, while

start in

endeavors,

been

be

only

and

made

The

done.

we

the promo¬
a

much

goodwill

of the public is vital to our busi¬
I

concerned

ness

and

may

not be doing all that

toward

am

fostering

that

that

we

we can

essential

goodwill.
One

other

comment

along the
industries,
notably the telephone companies,
line.

Some other

encourage and urge

to

take

active

personal

own

ities.

I

think

their younger
part'in their

community

activ¬
might well do

we

likewise.

As

of

spects to the four California Gov¬

sincere

start
more

Relations

ernors—Crowell, Jardine, Empey

pay my

I

Relations Within the Industry

Conference, held in
late
October, a

prospectus

to

by year the effort
relationships at the
political level.
carry

for

in

group of us discussed with the en¬
tire
Commission
and
staff
the
matter of a simplified

ours

and

a

such'

of

men

It is the function of

give

forums

tion

an

circular, and we were told that
something could be done about

me

such

atmosphere.

as

bring

through

investment

our

have made

which

such

to

than

operation and encouragement to
their associates in the conduct 'of

3 ears and the minor modifications

association

way

Street

should

same

our

fornia—let

of

firms

with

have

business.

thoroughly believe that manage¬
ment

ence

better

no

they

of

the enlargement of such efforts.

young men"

office, and through better
understanding of our mutual
problems create a better working

little

is

to Main

tain segments of our
membership.
The problem of the
prospectus, for
example, nas been with us for 20

Montgomery Street selling securi¬
ties and had he stayed in Califor¬
nia I would not be carrying the

can

of

can

or
im¬
provement to the overall position

to all of

great
Schmidt

thoroughly
than

a

of

There is much that

and yet each

this

of

work

Prospectus

Vice-Presidents and the

new

Board.
done

qualified

because

productive

proper understanding of our busi¬
ness

*

I genuinely welcome the oppor¬
tunity to confer and work with

our

iftiproving relationships

problem of regulating the

to encourage

industry.

of the

as

the

to

y

dustry

Walter

IBA

than

responsibilities of his

more

structively

time

Problem

the thanks

convey

approval

membership
for the

not

Assistant Prexy,
us

The

well

as

Calls attention

be

ful-

vj;

v't Nor is
'.mine

address, newly elected IBA President

ing better public and political relationships,

assure

has played a vital part

Ask anyone wh<J has
been associated with these efforts

been

with

humility

and

film

in this work.

proval in every way, and I do not

In his inaugural

responsi-

great

IBA

r

Partner, Davis, Skaggs & Co., San Francisco, Calif.
Incoming President, Investment Bankers Association of America

for

accept

b i 1 i t y

.

in

—

ra

constructive

a

work

percentage of

do

not

ance

Despite

carried

our

comprehend

on

for

citizenry who
the

the War, some firms in our busi¬
ness
or

have conducted open forums

schools,

for

the

public.

The

the

relationships

within

No one can deny that 10
highly trained men on a
special
committee
can
provide
system.

to

15

information

valuable

membership
the

import¬

of investment banking. Since

to

industry, IBA has always been
operated through the committee

our

men

chosen

committees
of the

as a

are

for

the

whole. This year,
for

the

various

the primary choice

Chairmen and their quali¬

fications for inclusion rest in their

understanding

of

their

Continued

on

subject
page

99

32

The Commercial and Financial Chronicle

(2556)

15,1955

Thursday, December

...

Essential Concepts of the Eisenhower Regime
In

By GABRIEL HAUGE

presenting herewith
by Dr. Hauge

Economic

the talk made

before

Convention

Bankers

ment

Association

Hauge lays down

Eisenhower Administration conceives it:
to

is

the American tradition and should be

that

Part

I

the

to

fact

constitutes

a

the

material

does not

more

of government

measures

winds

freedom

chilly,
are

fair

and

winds

of

theUnited

in

States

the

been

must

disposed

let

more

in

in
Dr. Gabriel

blow

Hauge

through the

American

is

There

economy.

nothing that succeeds like success,
and

this

today,

as

approach is a success
Chairman has in¬

your

dicated.

this

Now,

concept
of stable
economic growth operating within
an
economy in which the maxi¬
mum

built,

be

nized

more

freedom

is

the

believe

go over

them quickly, because
still

my

voice

is

of the

laryngitis which I inherited

bearing

from my four-year-old

the

marks

twin

sons

week ago.

my

need not

time immemorial. In

ing to discharge.

for

more

And

everybody.

finally, when

come

that

means

tion

the

should

guide

be

the

old

saying:
but along

not against
grain of human nature."

States, the

for the establishment of

message

ing,

beyond

who

sense

morn¬

race

—

the

economic

the

instant.

same

the American

every

American

same

line.

race

—

But

tradition

has

it

is

the

comes

to

under

to

growth.

when

the

discharge its obligations
Employment Act of

help maintain stable

nomic

growth

in

mechanism

of

mean

it

to

the

use

do

should

marvelous

to

have

of the Central Bank—but certain¬

ly,

also,

telegraph * to
the
American
financial
community
and business community that we
are on very high ground, indeed;
to

that

not

we

on

would

well

as

we

still

to

obsessed

philosophy

do

higher ground,
steadily and surely,
by some New Era

that

we

have

solved

all the problems and that we can
we

ever

knew.

so.

the

By

rely

eco¬

United
market

that, I

essentially

will
of

do

have

an

open

system of interna¬

tional trade and investment.

That

philosophy

underlies the Presi¬
program
in foreign eco¬

dent's

nomic

policy,

ment

of

an

which

important
remains

in by

won't

American

tion,

an

United

year.

This

organization

be

is

the

of

General
and

the

would join for

the
the

Agreement

Trade

States

which

administering

States

purposes

is

a

of

which

on

Tariffs

the

United

Therefore,
has

Trade

Underwriters

and

Distributors

or

that

say

govern¬

organize and ad¬
that will help

meet the human costs of

speak

things

speak

finding

things

speak

I

of

ica,

the

on

something
schools.

the

at

that

whole,
faster

I

I L'

BUFFALO

MONTREAL

LA JOLLA

HARTFORD

LOS ANGELES

NEWPORT BEACH

MIDDLETOWN

WESTWOOD

of

cost

catastrophic

are

things

must work

we

consistent
of

with

the

enterprise
will

that

economy,

it

and

it

bind

it

and

to

mediocrity.

lenge
of

restrict

of

our

social

people
is

and

have

in

Cooperation is important in

times

reduce

this

in

The

NEW BRITAIN

DALLAS

MEMPHIS

and

HOUSTON

SAN ANTONIO

BASLE (Switzerland)

ways

ways

and

means

goals

upon

people

that

are

traditional

the interests of the United States;

are

EXCHANGE MEMBERSHIPS
New York Sfock Exchange

Commodity Exchange, Inc.

New Orleans Cotton

Liverpool Cotton Association, Ltd.

New York Cocoa

Chicago Board of Trade

Los Angeles Stock

New York Coffee &
Sugor

Chicago Mercantile Exchange

Memphis Cotton Exchange

New York Cotton

Midwest Stock Exchange

Montreal Curb

New York Produce

American Stock

Exchange




Exchange

Exchange

Exchange

Exchange, Inc.
Exchange Inc.

Exchange
Exchange

It

it is

of satisfy¬

which

the

determined,

consistent with

liberties,

Continued

it is important not only as a fur¬

1845

Exchange

61 WALL STREET, NEW YORK
NEWARK

field

goals.

and

me,

PASADENA

LACROSSE

it

American

their

set

you

those

our

results

hamstring

all Americans to help de¬

to

vise

are

That is the chal¬

welfare.

to

up

up

that

functioning

free-enterprise and individ¬

a

ual

results

produce

on

LONDON

and

page

Clark, Dodge & Co.

BEVERLY HILLS

our

illnesses and sickness.

and

Members New York Stock

CHICAGO

BARBARA

do

we

about

further, looking

mean,

high

These
at

ESTABLISHED

NEW YORK

as

demands of the families of Amer¬

p.

SANTA

insur¬

to meet the insistent

ways

of

Advisory Service

and

as

such

things

such

of

Investment Securities

Research

growth.

unemployment

as

I

ance;

such

of

now

security;

system

a

of freedom in which to get

social

we

obligation to foster

minister programs,

American

Co.

I

an

programs, and to

ing

member.

Support of the Organization for

§

people
have it.

continue to

ment

I

kind

the overwhelming majority

the

ele¬

to

Organization For Trade Coopera¬

Shearson, Hammill

This

well.

pretty

system has got to be believed

a

that

legislated this
H

free-enter¬

a

prise system?" and hope that we

medical

Finally, Mr. Chairman, I think
this
philosophy
is
based
upon a conviction that we must

a

the

Government

the

1946 to

President's

aspect

eco¬

past

period,
taking
certain
actions,
presumably
to
achieve certain
physical results in terms of the
availability and cost of money;
and certainly, also—and I would
speculate, because I am not a part

ence

Fourth,

promise has reality.
further

for

the

forget all the history and experi¬

that

a

game

go.

States, it should

is

common-

in

United

the

over

forge

not

determination to fight to see that

There

necessary

in

Bank

been,

to go forward

it

position at the starting

And

are

the

has

of stable economic

at

that

right

a

that

of

Central

The

unreminded, and, if
necessary,
unpunished, but that
essentially if we legislate that
way, then we will serve the ends

should finish the

man

those

rules

We

measures

both

of

Now, we are today experienc¬
ing some of this kind of control.

do

It is not in the American tradition
every

direct

nomic activity; so that those who
fail to live up to their obligations

fierce passion for equality,
not the equality of equal shares
for every American, but rather
the equality of equal opportunity.
a

that

legisla¬

to

"Legislate
the

eco¬

man

to

government,
I
think
this
em¬
phasis on incentive and reward

sent you

this

the monetary-and-credit in¬
approach, public-debt man¬
agement and tax measures, and
not
the
direct-control
approach

upon

States

we

disposi¬
people and in
their government, to be prepared
to take such public steps as are
necessary to help meet the costs
of
a
system that we want to
keep free and dynamic. We can't
just sit around and say, "Isn't it
tion,

etc.

be

.._**»

First, there must be

through price fixing, allocations,
control of foreign trade, quotas,

since

of the United

this

expand¬

an

more

development from the be¬
ginning. There is in the President

is in

five

American

of

have

we

should not seek coercive

looks

on

philosophy, I think that there
obligations of Government

which this Administration is seek¬

game

of the market mechanism.

the same amount
less, then my more becomes
your less,
but it needn't be, it
shouldn't be in America. My more
need not be your less. There can

recog¬

exactly the

it,

this

or

at

and

if

Tariffs and Trade.

on

Now, beyond these elements in

the cutting up of

reward

strain

the Eisenhower Admin¬
upon

use

less. This controversy is
thing that has envenomed

the

nomic

as

key concepts, and I just want to

rules of the

common-sense

your

nations

essential

the

guarded

freedom

permitted, is

Agreement

to

one

"special interests."

over

economy,

be

something that has been

as

of

istration

propensity,

incentive and

of

concept

and

inborn

Second, I

re¬

cent times has

to

ing

least among many, to tamper and
change this market system into a
kind of mediocrity or, at worst,
an unproductive paralysis.

indeed.

Gov¬

ernment

concepts, it seems
these. First, I believe

are

the

is

resist

bracing
The

in support of living up to
undertakings which nations
have
taken
under
the
General

discharging its obligations under the Employ¬

this idea:

The essential
to me,

markets
are
the
best
way
to
organize the production the peo¬
ple want, and that we have to

are

they

bilized

In Part II of his address he asserts that the Eisenhower Administration favors

majority, the tremen¬
dously
overwhelming
majority
opinion in our country that free

of

way

(2) incentive and reward is in

encouraged; (3) by permitting

beyond

go

means

a

the

Act of 1946, the Government should make

ment

it

while

that,

shall not

general welfare

Exchequer

the best

are

provide

will

it

whereby we can see to it that the
opinion of the free world is mo¬

the

that others should have less; and (4) that coercive

for economic activities. Holds in

Part I

of Chancellor Butler of the British

as

of our willingness
with the members
world. It is important

example

cooperate

are

caption Part 11 was of a
prepared nature.—EDITOR

the

mean

under

To speak only of our own coun¬
try, we have, I think, in recent
times, been finding, in the word3

(1) free markets

organize the production the people want;

have

portion of a stenotypist's
transcript of Dr, Hauge's
extemporaneous
remarks,
while

to

President

the

essential concepts of stable economic growth,

as

tion

called

ther

to

because

Dr.

of America at Hollywood,
Fla., Nov. 28, 1955, atten¬

a

Assistant

of the free

44th Annual
of the Invest¬

the

Administrative

63

Volume 182

Number 5490

:.

The Commercial and Financial Chronicle

.

A
According

tradition

to

President's address

Busy Year for the IBA

the

By WALTER A. SCHMIDT*

the end of

at

review

the

of

activities

out

Associa¬

tion.

We have

had

Mr. Schmidt reviews what has been

and

the

I

attended

of

all
A.

our

We

told

were

have

that

been

tended

these

the

among

over

meetings
best at¬

the

among

and

worthwhile

most

the years.

On all

of

our group
visits, with the ex¬
ception of New York, Murray and

I

have

told

days of morning,
and

noon

groups.

everywhere

two

something

the

of

standing speakers, is
The

noon,

after¬

night forums and
an

out¬

example.

meeting of the New York

Group

had

attendance of

an

ap¬

proximately 1,500, which included
top-flight
representatives
of
a
great many of our leading indus¬
tries, banks and insurance com¬
panies.

It must have given these

of
our industry.
as an effective business
The speakers at that
organiza¬
tion, have discussed our legisla¬ meeting were Vice-P resident
tive and other common problems Nixon
(where he delivered his
"workers'
prosperity"
and have summarized the more famous
important activities of our Na¬ speech), Viscount Harcourt of the
origin

and

tional

the

evolution

Committees.

Bob

of

IBA

Steven¬

Gordon

son,

Boehmler
some

of

Calvert and Erwin
have
also
attended

the

Group meetings and

meetings of other Associations in
various parts of the country.
The business

British
and

favorable impression

a

Embassy

William

ever-

Washington,

in

Martin,

McChesney

Chairman of the

Federal Reserve

have

called

some

talk in the

past that the IBA is just

organization.

a

social

I have observed its

I

have

talked

travelled

miles.

on

behalf

Central

of

•Presidential
at

the

the

States

44th

members.

The

Conference,

address

Annual

of

Mr.

Convention

with

Schmidt
of

the

Investment Bankers Association of
Amer¬

ica, Hollywood, Fla., Nov. 28, 1955.

past

year

want

to

and,

make

although I
my

prehensive, I think
interested

in

the

don't

successor
you

ap¬

might be

and

away

Mrs.

from

few

statistics.
I

estimate

that,

on

IBA work,

times

and

cellent conscientious

the

Schmidt has been away

home

with me 76 nights.
I
judge that, of the time
spent in my office, at least onewould

third
I

can

there
the

devoted to IBA affairs.

was

assure

much

social

pleasant

me

to

IBA

than

important

and

more

side,

that feature may be.

as

Without
and

therefore, that

you,

exception, the courtesy

hospitality, which

have

is

true

within
you

that

to find in any

this

to
my

been

a

wherever

industry

our

have

as

get

fine

a

is possible

as

industry anywhere.

point,

publicly

It

pay

would

I
my

good wife.

great help

like

respects

and

to

She has

knows

he carries

wishes

for

a

all

the

to

Committee

National

26

and

the

on

the

members

the

of

?many

and

Committees.
These men
really responsible for
the
significant accomplishments
this year in the interest of the
investing public and in the inter¬
est of our industry.
the

ones

tough job—well done.
Our

Executive

Committee

retary of State Walter S. Robert¬

(formerly of Scott & Stringfellow, Richmond); the eminent
Senator Harry F. Byrd of Vir¬
ginia; Frank Pace, Jr.; Executive
son

Vice-President
namics

the Governors;
however, you should know that
we have lived comfortably within
our
budget this .year and are in

speeches

make its report to

an

over-all

sound

financial

con¬

dition.
Our

We

are

the

time

us

Washington

and

Chicago

Lausche

by

are

and

present.

to address

Convention.

they

are

the

economic

research,

and

Continued

David

»

I•

-Offices and
Representatives:

Chicago, III.

Philadelphia, Pa.
San

York

Francisco, Cal.

Hanseatic

Corporation
Established 1920

MUNICIPAL BONDS

Associate Member American Stock

Exchange
Direct Wires to:

120 BROADWAY,

NEW YORK 5, N. Y.

HIGH GRADE CORPORATES




Their

As

you

Honorable

offices
were
consolidated
in Gabriel H a u g e, Administrative
Washington late in 1954; this new Assistant to President Eisenhower;
office now is completely shaken Philip D. Reed, Chairman of the
down
and
operating
smoothly. Board of General Electric Com¬
pany; Harllee Branch, Jr., PresiFrank
Morris, who will direct

Dealers and Institutional Investors

Boston

Telephone: WOrth 4-2300
Chicago

Teletype: NY 140-1-2

Cleveland

BONDS

Houston
Los

I
i

SECURITIES

Dy¬
Governor.

Ohio.

equally appreciative of
so
generously given by

this

know,

of

everyone

speakers who
at

General

and

outstanding

were

acclaimed

the

of

Company;

Frank J.

Finance

Committee

Our speakers at White Sulphur
colleague, Assistant Sec¬

were our

Boston, Mass.

FOREIGN

has

at

will

The

complete service for Banks, Brokers,

STOCKS AND

happy

more

held six

.'v;

persons

National

various

Group

has been

New

Surely he
our good

Chairmen

approximate 775

•

UNITED STATES GOVERNMENTS

of

over

recognize,

with the satisfaction of

i

A

I

meetings during the year;
Hollywood,
White
Sulphur,
Executive Committee,
the Gov¬ New York, Santa Barbara, Chi¬
ernors, the Group Chairmen, the
cago and Washington.

debted

been

overwhelming.

gathering of people

At

has

Schmidt, Murray and

been

certainly
groups

I, personally, and our Associa¬
and industry are deeply in¬

tion

are

is

Committees

service

which we
deeply appreciate.
years,

years, and

of the

superb.

also
Dudley Smith, who is retiring
at the end of this year as Municipal
Secretary. He has given us ex¬

have
The Work

is

I want to pay my respects

patient and understanding
throughout the year.

42,000
from my

and co¬

corps

to

very

over

have
from home 116 nights

Eleanor,

following

member

I have been away
110
working days;

office
been

61

slightly

increasing aggressive educational, operations intimately during the together,
legislative and cooperative efforts

230

on

firms; have attended 79 meetings;

shown Mrs.

Board.

There has been

meetings of all of

the Groups clearly revealed

guests

we

de

which

respective members each had as
an
organization as the IBA,
they would be most fortunate.

and

18

of

Schmidt

esprit

an

fine

annual

meetings
Walter

Bob

Boehmler,
They round
efficient and loyal

have said many times that if our

the "Bank-Dealer Contro¬

as

assist

Erv

Murray Hanson has devel¬

ordination

writing and sales profits. Sees current high level of business activity continu¬
ing for some time to come.

Murray
and

oped

versy," "variable annuities," the sale of "penny" uranium and oil stocks; and
the various developments which have tended to hem in the
margin of under¬

with

dispatch.
Hanson

now

impending matters requiring settlement, such

give this final
summary

along with problems

past year,

of ground, but
I shall try to

have

accomplished by the organization during
facing the securities industry. Discusses

lot

a

will

and

most

our

staff.

busy

a

year
covered

who

Stevenson

have been employed.

Partner, Schmidt, Poole, Roberts & Parke, Philadelphia, Pa.

of

the

Gordon,

Retiring President, Investment Bankers Association of America

his tour of duty should provide a
brief

33

(2557)

I

Angeles

Philadelphia

Portland, Me.

«

|

Providence

I

|
I:

»:
i;
i
*

li
II

San Francisco

on

page

100

The Commercial and Financial Chronicle

Thursday, December 15,1955

v»

.

(2558)

34

A Basis lor Confidence
i

-i

-

.

,

:

'

of

By PHILIP D. REED*
I would like to

address my re¬

Chairman of the Board,

the future.
Although
much that I shall have to say per¬
tains to the country as a whole,
marks

-'

■'

-

to

'•

familia

in the future of our

with the elec¬

trical industry

of

with the Gen-

t

deal

s

,

.

small profit

margins; technological ad/ances; consumer credit;
sure; and competition in lieu of the cartel.

particu-

•

Philip

Reed

D.

start

telling
that

T:sv>

-

Third,

have

we

completed

a

like

would

to

thoroughgoing company-wide re¬

by

organization of our business, most

you

since

sum

War

is

II,

more

which

of

has

heretofore

on a

been admihistered
rather highly cen¬

to command.

These and other or¬

ganizational changes, have, we be¬
lieve, prepared General Electric
to serve America as never before
in

its long

history with new and

amount

General

than twice the

Electric in 1892 to the
in

end of World War II.

Second, we have
"hnnHrAH
hundred

dollars

-

Qnri
and

in

-

new

fiftv
fifty

and

-

fivp
five million
million

improved fa-

cilities for both fundamental

and

applied research, including 12 new
laboratories.

We are deeply con¬

vinced that research is the corner¬

stone of our progress to
of our future
•Summary

of

date and

without

remarks

by

Mr.

Reed,

Annual Convention of the
Investment Bankers Association of Amer¬
the

at

44th

ica, Hollywood, Fla., Nov. 29,

1955.

■

twice the present popula¬

almost

with

families

million

A

the

power.

together.

One

defeats

others

its

but

income

an

engineering,

sary

to justify the very large in-

manufacturing, marketing, ac- vestment in manufacturing and
counting> finance, employee and • research facilities which we have

public relations, etc. It is the duty
of these Services experts, in their

respective functions, to create

*° keeP abreast of the very
diversified

our

and to pass

and

to any

applicable

all

of

and morning

to

the

four

principal

latest points.

methods, machines, materials

techniques

made since 1946. The grounds are
many) but i will limit myself this

or
businesses

by

day to the Operating

We now

have some

163 million

The

job

people in

growing

gross

means

first-class

condition.

sales techniques to a

degree un¬
elsewhere
in
the

paralleled

Without it

world.

indices

would

of their

our

be

at

economic

fraction

a

present level, and new
like
television, for

industries

example, would still be in their
infancy.

and

(e)
more

We in America believe in
leisure
for
our
people

substantially

decade

more

of

tries that

provide means for en¬
tertainment, for cultural pur¬

suits, for sports of all kinds and

our

for

these
consult,

cnrpt

less

thai

convincing

vides

(f) And finally and most im¬

ideas and

and

demand

And

this

sus

sparkplug of our economy.
us endlessly, urgently
searcmng and
researching for
new
and better products, more
efficient methods of production

bil¬

and it pro¬
of a
knowledge,

and surer

and the

"carrot"

at

pushing

us forward along the
better things.
Human

products that
investment
years

road

ahead.
*

teen described as

a

substitute for

com¬

j-

►

for

the

But

the

American

foreseeable

in

future

is

in

no

respect dimmed by the very evi¬
dent purpose and endeavor of the

Peoples Cap¬

present Administration to do those
things, both legislatively and ad-

italism, in which the masses, not

few, enjoy

its fruits and benefits.

no

all fairness I
should add that our optimism for
economy.

has

simp'y the privileged

and

being what-it is, I submit

is

cutlook

the

quite different from the
economic systems that go
the name of; Capitalism in
what

v

then, are the principal
grounds for our optimism about

many

is

pulling

once

These,

ism.

It

there

the

petition.

Curs is

countries.

to

nature

further growth.

(4) The emergence of our own
particular brand of Capital¬

other

marketing techniques.

both

"stick,"

A

by

keeps

It is

the

in

be¬

the

It

both,

means

America

in

deeply in competition ver¬
the cartel.
Competition .is

new

new

stimulate

Will

we

lieve

assurances

continued flow of
new

cne

do-it-yourself enthusi¬

portantly,

expenditure

this

the

asts.

velopment of new products, new
markets, new methods of making
and
distributing goods.
We are
today, as a nation, spending four
billions annually for research. In
believe

the

And

week.

fact of extensive leisure
has produced great new indus¬

production

I

work

very

of our

to

V,P

a

ductive

can
be de¬
increasing our standard
living rather than to defense.

national

short and highly pro¬

through

the next

during

of

BRIDGES

pay

time,

(d) We in America believe in
consumer credit,
and have de¬
veloped and used installment

product.

national

that

will continue to grow,

AND

reasonable

a
good
investment
even
though it replaces equipment in

country. The ex-, (3) The impact of organized re¬
search and development.
perts tell us that in 10 years there
Services
experts is to
is
wjn be an additional 27 million
American prosperity and growth
teach, advise and appraise, never Americans living here. This is is based on innovation, in the de¬

Departments.

a

is

Mithmmh

will

expenditures

in

a

voted

United vStates.

this information along

itself

will

resulting savings,

for

should continue at a high level,
^ 7^/" i™y percentage of our
sent
declining
This

(1) The large and assured popu¬
lation
growth
here in
the

Anfi

-A™a.Jc^fw"
defense

machine

job better and faster and which,

$3,000 or more, by 1960 we will
have 45 million such families, and

A

tool, new technique, or
that can do the

new

new

of

1041




occur

less of its remaining useful life.

They also tell us
that, whereas today there are 35
tion of Canada.

lion.

TUNNELS

productivity

high

together they
spell dynamic growth.
(c) We in America believe in

0f economic, military and po¬
litical strength,
.
.

STATE, MUNICIPAL, REVENUE

»

' i

c '

purchasing

ends,

own

'

p.artm^nj| Is a Services organiza- company. You may very properly
tl0n' experienced °Ur mpstin such highwhat grounds we have for the
staffe.d wlt? experts skilled ask degree of confidence necesand

from day to

opportunities.

large

1

■

We in America believe in
wages,

have achieved a new position

business functions as

invested one-

i:'

They must

tUre or our country ana oi our

uveriying mese ypw-mms

total

invested from the birth

so

of General

and

volume

high

Electric tralized basis. We now have 86 exciting products, competitively
by 1965 55 million.
Translated
Company has done three rather 'decentralized Operating Depart¬ priced and competently serviced.
into the needs and demands for
ments, each a business in itself
significant things.
Four Main Confidence Factors
products and services of all kinds,
and each headed by a General
First, we have invested one-bilFrom what I have said you may this increase in population and in
Manager with wide authority to
lion-two-hundred-million
dollars
make
those important decisions rightly draw the conclusion that family formation presents an exin new and improved manufactur¬
tremely challenging prospect.
upon which the success of that we
in General Electric have
ing facilities for our highly di¬
decentralized enterprise depends, enormous confidence in the fu- (2) The
Western
democracies
versified line of products.
This
Overlying these Operating De- ture of our country and of our
World

small

scrapping the obsolete, regard¬

of illustration.
I

(a) We in America believe in
large volume and small margins

high

increasing lei-

fea¬

(

and

'

larly with
them by way

,

(b)

Capitalism" includes benefits from large volume with

others by

the

principal

six

maigins.

:

that I

rather

more

following

—not

achievement of new strength; impact
research and development; and our own particular brand cf capi¬

This "People's

talism.

Company sugg e s

organized

Electric

1

t

growth; the Western democracies'

tion

and, of course,
e r a

following four reasons for his "enormous ccnSderxo
country and our company": the large and assured popula¬

Leading industrialist lists

i t y

r

the

tures:

greater

my

capitalism is characterized and

distinguished from

General Electric Company

Our brand

Continued

on

page

119

TOLL ROADS

pRST

i

§

OP MICHIGAN

CORPORATION

Underwriters and Distributors
SCHOOLS

STATE,

MUNICIPAL
and

CORPORATE

HOUSING

Members

NEW YORK

I

LEHMAN BROTHERS

1

One William Street, New York

and

Midwest

Stock

Exchanges

DETROIT
Columbus—Battle

Grand

||

D2troit

SECURITIES

CHICAGO

Creek—Flint

Rapids—Lansing—Port Huron—Saginaw

Volume

182

Number 5490

..

The Commercial and Financial Chronicle

.

35

(2559)

There's No Limit
I

am

been

sure

and I have long

you

convinced

of

the

By THOMAS B. McCABE*

inter¬

of'industry and in¬
vestment banking. I am convinced,
too, that there will be NO LIMIT
TOMORROW

that

and

Former

t

o

Asserting, "we

-

will require

points out, will

progress we
have yet ex-

basis of stock

Tperienced.
There

will
be

course

the threshold t>f

are on

mean

that nation

cent

realize that there is

economic

„

Thomas

pic-

revolution just getting started.
*We have come to realize that

ture

as

the

forces of

,

B. McCabe

sup-

ply

and

scientific

developments,

production—the

mass

we

industrial

an

mass

never

But

I

pand.

,

And,

of

we

glance back,

event

procession

a

.

.

.

one

after another. I'm. sure

of

you

thrill

of

having

miracles.
not

share with

a

great

if

you

many

that

me

witnessed

Recall,

world

that

first

began

the

these

will.

years

time is measured—when

—as

It

deep, virile hum

of the

we

ties

*An

the

automation
address

44th

vestment

ica,

by

Annual

other

McCabe

Mr.

Convention

Bankers

Hollywood,

and

Association

Fla.,

Dec.

1,

of

of the needs of mod¬

merchandised

in¬

re¬

The

has

'
a

broader

a

In¬

each of you, to raise his
this'
must

a

New Era

attention

our

recognize that

we

are

best

on

of

wisdom,
action

strength,

to

turn

the

new golden era into
If we, as partners, are to
participate in that future, we must

reainy.

prapare now for the

big plan, big

enough to
President Eisenhower

The

areas

ard

in

look forward

higher rate of personal

an even

income

can

with

leisure

more

and

a

better life for everyone.

Certainly
in the investment banking
industry can take pride in the fact
your

efforts

in

assisting

in¬

And

1965.

current

a

has

It

the

significantly to this
can

even

UNDERWRITING

more

to

can

two

new

the

THE

been

next

require

than

contribute

the annual increase

be raised from

and

one-half, to

through the next ten
reasonably shoot for
goal of, perhaps, $565 billion.

uted

1§55.

goal for

years, we can

in

progress.

nation's

three percent

dustry to finance new and better
production facilities have contrib¬

Amer¬

if

productivity

the

you

that

double

the

a

ten

calculated
years

that

in

vol-'

public financing

double

the

past decade.

.

.

more

requirements
Need I say

of

that,

GROWTH

conservative

right off

productivity

for further

to

are

of

our

the

be

found

in-

continue

that

we

continue

healthy
President

has

have

to

climate.

such

Certainly

the

a

and.J3ill

to

give

'

f

"r

Martin
wise

us

will

leader¬

New

i

Capital Goals

Grasping

the

full

significance

of

our
future opportunities is a
tall order. Making them into reali¬
ties will call for imagination and

bold
for

planning.

its

you
now
so

do

Industry is girding
.

.

.

it

but

to

alone.

be

sure,

We

need

help. We are counting on
to make constructive plans

your

the

battle

can't

we

of the

support

consideration

and competence.

some

potentialities of
dynamic economy, it is vital

careful

ship and will exercise their au¬
thority with flexibility, firmness

scene.

the

further

Humphrey

are

people to realize the full

.

.

.

plans that are big enough
supply that new capi¬

you can

nation, and he is exerting the kind
of
leadership that gives confi¬
dence to the business, the public

tal

and

Paper

our

friends abroad.

Having
the

spent

Federal

several

Reserve

in close contact with
I

am

years

System

in

and

I

will need

over

the next ten

can

tell

you

now

that

Scott

Company is currently re¬
vising its goal upward. At our
sales meeting in 1953 I announced
a

government,

goal of $300 million of sales by

1958.

naturally interested in the

programs

we

years.

This meant then that I

giving

our

organization

Continued

of the Federal Reserve

on

was

the

for-

111

page

AND
M'wm

CHANGING
A

Decade

Bank
*.•

off

Public

of America
4

I.-...-

NEEDS

,

has
.

OF

CALIFORNIA

Finance

participated in 1745

-

''

•

.

separate California State and

municipal bond

underwritings during the past,10

years
rr»|

(averaging about 1

every

2 days).

Large and small
■*

state, its counties, cities,

£

%

f

;

J

..

4

'A

*

km

^

:■

w::

I '
| \.

'

mrnntjew*
v,

fo

//4"

A

y

/Z4Z

'

branches"

local

relationships with thousands of

able

to

maintain
,

\v

m

■

■

■

...

California

M 'M M !<$>

political subdivisions.

NATIONAL

savings

Underwriters and
Distributors of




•

ASSOCIATION

BOND INVESTMENT DEPARTMENT

STATE

AND

m

V'/'//

hmm

?Sattk of Atitertra
MUNICIPAL BOND DIVISION

^

WW-Mi,

I'M
/' mm

our

570

are

lw

school districts and

public districts. Through
we

I

r* I

projects alike have been financed for the

other

MUNICIPAL,. BONDS

Specializing in the General Obligations of the State of California

and

the

inflation and continue to prosper.
am
confident
that
George

expansion.

international

—

I

his

we

unavailable

preserve

by the monetary authorities if the
economy is to
function without

political climate is al¬

benefit from

industry will

minimum of $160 billion

most

boots

it

to

.

for

only seriously disturbing in¬

fluences

our

the

and

ideal

most

Product

in

share of

industry,

enjoyingtoday—this extraordinary
prosperity—is being attained in
a
period when the social, eco¬

wracking uncertainty of cold war,
our people have attained a stand¬

as

the

high

nomic

challenge.

First of all, in our preparation,
need a plan to guide our ef¬

we

spur us on.

The

period of unequalled significance.
Despite hot wars and the nerve-

ever

-

desk.

men

startle

businessman's

For

living better than

for

by 1965. Here,
then, is your opportunity — and
your challenge—to set your busi¬
ness-building plans.
It's enough

established the objective when he
set $500 billion in Gross National

of

than

more

take

courage, and
vision of this

make

way

confidepce
is to prevent it from
turning^into
over-confidence."
■•"%«
The next few
months.,, Vill call

of his business

ume

on

capital

new

to

You

before

to¬

-

boundless, long-range future,
can

forts—a

The past ten years have been

focus

we

of

y.

.

threshold of an era literdlly
charged with opportunities. It will

of

era

production "

been launched.

to

to

the

of

is

the

today,
contemplate the potentiali¬

of

more

appropriately
now
taking into

the past. And we

dustrial revolution, and yet
as

and

ago

vibrate

to

to afford

never

the

"

of

accomplish¬
vitally significant

been

merchandising.

ern

industrial

many

was

account

the future is
the past. As I
memory becomes

my

has

adjusted

by

with

startling
ments

duction

ex¬

-

:

As
the

that

course,

foreshadowed
crowded

>

you
will join with me in
commending the Federal Reserve
for having kept a
firm, but sensi¬
tive, rein on credit. I agree with
Henry Alexander when he says,
"you may make credit dear but

banking in accomplishing this goal.

expansion1

y

*

Oil Threshold of

.

pro¬

of Henry Ford's time—is
enough. Now, we are going

further

them¬

exert

confident

limitless

morrow.

not

de_

accelerate and

to

cease

to

am

the

duction

and
are
attempting
to
provide for the varied and chang¬
ing desires oL the consumer. As
our people will never satisfy theif
desires for better living and that we come to recognize the need
for adapting to the
our
consumer, pro¬
technology,
therefore,
will

continue

mand

selves.

capitalists

I know

that

pe-

valleys in
-the long range

policies.

economy confirm the soundness of

next decade

nation of individual stockholders,

a

monetary
Improvement

those financial programs.

in the

economy

help¬

are

sound

in current business and the
strong
upward
trend
in
the
nation's

*

financing. This requirement, he

more

credit

establish

t
'

L

literally charged with opportuni¬

new

have

and stresses the importance of investment

of

and

♦

must

ownership. Foresee need of

riods of peaks

--

'

Board

'

an era

minimum of $160 billion in

a

the periods of

■

Reserve
'

•

ties, Mr. McCabe forecasts capital^needs for the

exciting,
more thrilling
than any of

c

Federal

to

and
,

more

-

Chairman,

'

Treasury, which

ing

'

>

gether will be
"

'

'

our

future

and the

President, Scott Paper Company

dependence

ON

Tomorrow

on

its

Political Subdivisions

Ww "

wmmmf**

::

'

4
-

'

\
36

;

■

•

The Commercial and Financial Chronicle

(2560)

-

■

-

,

Thursday, December 15,1955

...

Economic Trends in Canada
To

an

By IION. WALTER E. HARRIS*

audience made up almost

af¬

that

table,

economic
1

v e

and

sources,

to

subject

tance

be¬

last

April

seem

views

held

we

require

to

re¬

appraisal.

economic event of
been the

past two years has

recession

of

1953-54

brador

Iron

Ore

been

had

pleted and the two major oil

the

and

Alberta
The

had

next

major

of

ex¬

Most of you will recall

that Can¬
ada
almost wholly
escaped the
short and sharp recession which
the United States went through
in 1949.
In that year, despite an
almost 10%

Canadian
In

1953-54

we

fortunate.

so

Years, in

had

at

the beginning, or in

of

a

number of major

quite

found

us

the midst

investment

development

projects—oil

than in yours. And Europe,
to the surprise of many people,
has been almost completely un¬

Kitimat

on

the

in

Al¬

Pacific

Coast, and Labrador Iron Ore far
up

in

*An
ris

New

before
York

northeast.

the

address

of

the

Finance

Canadian

•

1953-54

Minister
Club

omy

the upturn.

In your country busi¬
activity started to slow down

mid-1953, while our downturn
not

began in the fourth quar¬
ter.
Our low point came toward
the end of 1954 and recovery did
not

Har¬

begin to pick up rapidly until
into the spring of this year.

well

four
six months behind you both
the downturn and the upturn.
other -words,

In
to

berta,

can

affected

on

On

tude
what

we

lagged

S.

U.

Economics

the other hand, the

of

the

less

in

recession
Canada

magni¬

was

.some¬

than in

the

a

2

operations

of

turning out rather bet¬

are

than

I

might

interject

and America may, as

in

contribute to

somewhat

economics.

international

It

in

had

become the fashion to blame many,
if

of

not most,

the

of the economic ills

world

on' the

United

States.

Your

general

in¬

a

But

perhaps it is not
we

On

the

blame

American

instability of
for all

Government

the recession

met

ways.
were

in

policy
in

neither novel

declining

followed

an

In

alleged in¬

the peak

1%

low
1955.
over

in

stability of the American economy.

to

money

fell, from

money

2V2%

below

Canada

free

and

business

we

have,
and

like

about

give all the credit to gov¬
ernment policy in minimizing the
of

and

the

recession

—

the

2%

back just over

level.

other

played their
part. I would not wish to say that
persons

and

measures

timing'

were

always perfect, but I think I can

fairly say that our governmental
policies during this period were
sensible and moved in the right
directions.

'

•

•'

'

*

',

Sound Basis for Canadian

Economic Recovery

acceleration of activity during the

are now

not

want to

rates from nearly 4%
3Vi%.
With the rapid

past six months, we have applied
the monetary brakes to the extent
that seemed desirable and short-

you,

I would

.

to

result,

a

••

long-term

other

to

as

As

general

economy

factors

of 1953, dropped be¬
the first quarter of

Five-year
3Y2%

with

effects

Policy

policy. Our 3-month Treasury Bill
rate, which had been close to 2%
at

to our char¬

1953.

a

dramatic.

easy

well

activity, actually increased, and
quite sharply. At the low' point
of recession, new housing starts
were
running about 25 to 30%
higher than in the same period of

variety of

Money

open

as

residential construction, instead of

being orthodox and dull.
Easy

banks

lending institutions.

I have even heard them criticized
as

mortgages

tered

the whole,

nor

moderately

up

also

sured

Canada

a

stepped

1954, and again for 195,5.
introduced new housing
legislation with a system of in¬

the
the

on

Our policies,

be

in

We

ills.

economic

world's

now

actual

expenditure side of the

we

tion

in Canada nor our

economy

it

and

the scale of government construc¬

friends in Europe can now so eas¬

ily

expected

probable that the

the

budget

bad thing

a

$160 million.

cast.

3% decline in the economic

that neither

about

at least one-third less than I fore¬

even

our

useful by¬

discussions

of

of our
friends in Europe, are not likely
to forego our right to criticize or
disagree with particular aspects
of United States economic policies.

We

a

harmonious

heard

we

I

deficit for this fiscal year will

We in Canada, like many

and

Stability

passing that the divergence of re¬
cent economic trends in Europe

more

or

term funds

Forum,

City.

Perhaps

1953

of the world

rest

Canada's

International

product,

the

-

accelerating

ter

activity in the United States. "If
America sneezed," we were told,
"Europe caught pneumonia."

American

the North

by

to

1949

From

fuil

a

Events

great deal about the grave effects
on

ihi

recovery was; not
clear.
We produced what I
regarded as a conservatively opjtimistic and sensible budget.
I
forecast a deficit on this year's

population.

recession.

covery

not

were

1949

ex¬

other, that export trade overseas
especially with Europe plays
a
much larger role in our econ¬

clearly evident until late
in 1953.
Your low point came in
the first half of 1954 and rapid re¬

Expansion

current figures are 3 or 4%

and

in Canada did not ex¬
parallel yours.- We were

was

above

believe

be mentioned: one, that
we
are
going through a stage
when the general trend of our
rate of growth and expansion is
somewhat greater than yours; an¬
ever,

later both in the downturn and in

in

I

in detail the basis of our
great resilience. Two factors, how¬

decline and

pansion.

and 7%

points.

plore

recovery

ness

about 13% above

lows

high

1953

your

ada.

dip in your principal
economic indicators, all that we
experienced was a moderate slow¬
ing down in the rate of our ex¬

now

above your previous high.
This is not the occasion to

ex-

States should be reflected in Can¬

actly

are

we

the

panion

The 1953-55 cycle of

production fell about 10%
a
comparable
basis
dropped about 7%. Our rate of
recovery, though it started later,
has already caught up with yours,
on

the recession

pipe

and west from
also been completed.

project

dex of

to

early- this-year-'was
designed Ub.:$ro-7

was

yet

also investing abroad. Stresses economic impor¬

Ours

and

com¬

(St. Lawrence Seaway)
traordinarily rapid recovery dur¬ was not quite ready to go ahead.
ing the past 12 months. In Can¬ We were, so to speak, caught in
ada, we, like the United States, a pause in our expansion and it
experienced
this
recession, but was inevitable that the decline in
with some interesting differences. business activity
in the United

1953-54—Pause

of

appears

lines running east

The principal

the

move¬

have

passed
the caught us at a point where oil
halfway mark development and expansion had
in our fiscal year and this is a levelled off (though still running
natural point from which to look at a very high level); the first
backward and forward to see to major phases of Kitimat and La¬
the

are

of recent rapid increase in Canada's

E. Harris

extent

larger role in this

tax

recommenced

we

balanced" budget

a

rates

The

high levels of activity; We
had to prepare and
deliver the
budget at a time when evidence

Estimates 85% of Canadian investment comes from domestic

while Canadians

this

on

cause we

what

a

tax

our

year at

and holds, despite recent set-backs, there is a sound basis for Ca¬

nadian recovery.

conven¬

time

ient

W.

trade is playing

duce

of U. S. economic stability in maintaining interna¬

Points out importance

tional stability,

is

a

speak

Hon.

are

of our total

nevertheless,

1955.

for

which

one

in

Canada;
also

ment.

de-

It

and in Canada* ? Finance Minister
similarities, Canada is experiencing a more

rapid rate of growth, and her export

opments
trends

though there

Harris points out,

I

current

about

of

some

Parliament

comparing economic trends in U. S.

In

talk

should

reduced

structure

inevi¬

almost

We,

moderately

and

fairs, it is na¬
tural,
indeed

3V2%

or

expenditures.

Government of Canada

less

persons who have more or
direct
interests
in Canada
Canadian

$150,000,000

Minister of Finance

entirely of former Canadians and

Our recovery from the pause of
1953-54 has been very rapid, but

to be soundly based. Em¬

appears

ployment is expanding to new
high levels. In the winter of 195455, when seasonal unemployment

Fiscal

operations
have
also was at its peak, its level was such
played their part. After eight suc¬ as to cause real concern. However,
cessive years of budgetary sur¬
by May, the pick-up in construcpluses, we ran a deficit in 1954.
Continued on page 89
It was not a large deficit, about

DEALERS

UNDERWRITERS, BROKERS

Bear, Stearns

&

Co
distributing

Members New

York Stock

Exchange
CORPORATE and MUNICIPAL SECURITIES

since 1886

IF. E. HUTTON & CO.
Members New York Slock
and other

11

NEW YORK




Exchange

leading exchanges

CHICAGO
CINCINNATI

NEW YORK

Philadelphia
Burlington, Vt.

-

*•

Baltimore

Columbus, O.

Dayton, O.

Hartford, Conn.
Lexington, Ky.

Boston

Biddeford, Me.

Easton, Pa.

Lewiston, Me.
Portland, Me.

The Commercial and Financial Chronicle

Thursday, December 15,1955

...

The Electric
It is
vited

address

to

gentlemen,

this

representing the
banking
business

vestment

By HARLLEE BRANCH, JR.*

You

group.

It

is

cost

funds

for

Jr.

the

and

isting businesses. All of
in

the

the

great

who

us

are

producing goods and

contribution

The

have

you

are

live.

<

particularly
efforts.

For

the

past

War

II

capital.

10

years

have

we

have

we

During

witnessed

increased

ments.

this

decade

require¬
to pro¬

sought

vide, and have provided, an in¬
creasing margin of reserve gen¬
erating capacity over peak de¬
mands.

from
of

a

1947

This margin had increased
low of 6.1% at the end
to

approximately 21% at

the end cf 1954.

have been

Comparable gains

made

in

the construc¬

facilities.

This
not
rate

growth

made possible

was

only by the industry's
evaluation

done and the

ment

Annual

ments

have

Growth

the

of

accu¬

job

to

been.

zation

of

Association

the
of

of 1945 the

capitali¬
the
electric
industry
$13,342,000,000.
Nine

of

at

years later, at the end of 1954, the
figure had grown to $26,736,000,000, or twice as large.

Actual construction expenditures
were

higher, since

even

new

growth

estimates

the

of

of

electric

industry

that we will continue to
double in size every 10 years. To¬
tal electric
generating capacity in

country, including government
plants, is now about 115 million

kilowatts.

1965,
be

It is estimated

215

million

about

kilowatts

will

and

be

that

hours.

staggering, indeed, to con¬
template that when our industry

double again in another

for

upon

to

10 years.

continuing need
capital which we must
you and your associates

new

call

a

Each

sues

year for the past
seven
1948 through 1954, new is¬

of

electric

utility securities
$l1/4 billion.
In
three of the seven years, the new
issues exceeded $1% billion.
have

exceeded

On

the

pansion,
tures

our

year,

current

of

the

estimated

next

rate

10

of

by the end of the period.

However, you will be interested
in

through

chines

may

seem,

to |be
For

are

the conservative

on

example,

World," in
19,

fantastic as
believed by

as

a survey

"Electrical

security

new

raised

be

to

issues

to
fig¬

previously referred fo. In my
company, for example
(and
past experience has closely
followed the national pattern), we
anticipate we will need to go to
ure

our

the

securities

markets

thing less than 60%
struction

funds

three years.
to

news

for

of

during

knowing that, despite this

ex¬

pected plant expansion, our
quirements for new capital

our

con¬

the

next

This should be good

you

to

and

are

re¬

should be able to main¬

tain

present
stocks

and

automatic

seek

that

our

as

a

ratios

capitalization
and

with

is

think

a

INDUSTRIAL

also

significant

a

RAILROADS

•

INSURANCE COMPANIES

•

MUTUAL FUNDS

MUNICIPALITIES

nevertheless able

to preserve the

soundness

financial

tures

of

our

to

increase

share

per

and

of

common

dividends

earnings

were

INSTITUTIONS

•

are

of these stocks
age

of

from

BANKS

INDIVIDUALS

Harriman

•

What

Electric

From

the

Utilities

Offer

•

Investor

standpoint of the in¬

vestor, our industry offers

bility of income which
will

be

enhanced

I

a

sta¬

believe

(1) Our residential consump¬
tion, which is least affected by
business cycles, is tending to in¬
crease

faster

example,

the other

load.

it

of

our

revenues,

provided

(2) The cost of
steadily diminishing
the
total operating

electric

the

ning, in which they generally had
understanding
acquiescence
of state and Federal regulatory
the

pro¬

but

40.1%.

is a
element in
expenses
of
power

commissions,

were

cient capital to meet
ments of
I

think

ing

an

this

63 WaH
*

•

CLEVELAND




PHILADELPHIA
•

DETROIT

•

achievement

Union Securities Corporation
Broadway, New York 6

•

BUFFALO

CLEVELAND

CHICAGO
READING

HARTFORD

PHILADELPHIA

SYRACUSE

the require¬

and

Continued

Common Stocks

BOSTON

to

unparalleled growth.
a really outstand¬

CORPORATIONS

Street, New York 5, N. Y.

both

is

Incorporated

BOSTON

able

improve dividends and raise suffi¬

Equipment Trust Certificates

65

companies

through the exercise of business
prudence and by far-sighted plan¬

com¬

In 1945, for

residential service

34.9%

1954

than

our

Thus,

by two signifi¬

cant trends of recent years:

the

Corporate and Municipal Bonds

Ripley & Co.

aver¬

fairly constant through¬
period, with an increase
of about 4% in long-term debt,
a
corresponding decrease in pre¬
ferred stocks, and with common
stock equities virtually unchanged.
out

to

DEALERS

an

in 1945 to $44.30
Capitalization ratios re¬

1954.

in

rose

$26.29

Investment Preferred Stocks

Available

1954

dividends, $2.13. The market price

FOREIGN GOVERNMENTS

Our Facilities

In

$2.94 and

were

Underwriters and Distributors of

MUNICIPALITIES

•

stock.

$1.30.

share

per

in¬

THE CANADIAN GOVERNMENT
PROVINCES

struc¬

dividends

Moody's
common
stock
weighted average of 24 electric
companies shows: In 1945 earn¬
ings per share were $1.72 and

AUTHORITIES

•

fact, I
that dur¬

ing ten years of unprecedented
growth, from 19'45 through 1954,
when our industry's capitalization
increased by more than $13 bil¬
lion, or about 100%, we were

CORPORATIONS

PUBLIC UTILITIES

maintain

remarkable fact,

Capital Issues

and Dealers in the Securities of

or

of in¬

devices

to

ways

published last

estimated

use

mained

in

generation of internal cash.
This
should reduce the proportion of

industry

growing
market strength for those issues.

vided

present tax laws, will increase the

the

with less dilution of existing com¬
mon

accelerated

under

trend is

by

we

ponents of

depreciation,

invest¬

the

followed

likely to increase proportion¬
ately during the next few years

not

some¬

whole,

years

above

something over
$2% billion to about $4 billion a
year

the

might be expected to occur dur¬
ing such periods as alert indus¬

something less than the 64%

ex¬

$3 billion
ranging upward from the

average

in

cut-backs

dustrial power. In
fact, a greater
use
of electrically-operated ma¬

trialists

funds

construction expendi¬

over

should
a

basis

relatively

that

means

industrial

tendency to reduce the

power

ing public since, if this

supply.

years,

indus¬

retrenchment, there will be less

own

It is

This forecasts

construction

since accelerated amortization and

figures,

Underwriters and Distributors

•

million

energy sales are expected
to reach 850 billion kilowatt hours

Sept.

1985

power

kilowatt

kilowatts

400

Our

side.

Hollywood, Fla., Nov. 30, 1955.

BANKS

that by

generating capacity will

our

about

million

in

consumption will
have grown by 1985 to a trillion

our

many

Invest¬

232

capacity

electric

the

indicate

These

America,

of

cap¬

ital
provided only 64% of the
funds required and the other 36%
came from
internal sources.

Long-range

stalled

the

of

While

volume and reduce expenses.

reaches those astronomical figures
in
1965, we will still go on to

by 1965.

be

by Mr. Branch before the

STATES

You

of Electric Utilities

At the end

efficiency and bold-

Convention

Bankers

necessary capital.

require¬

they
♦An address
44th

the

and, by 1975,
kilowatts.

tion of transmission and distribu¬

tion

vided

have always met the challenge no
matter
how
great our

the

future

have

We

planning, but also by
pro¬

requirements, but to antici¬

pate

its

the cooperation of your
group and
the American investors who

stood

ex¬

greatest
physical expansion in the history
of our industry. We have sought
not merely to meet the actual dayto-day and year-to-year electric
power

Finds private enterprise overcoming public

power.

value

remained

This
of

It

of

ness

your

perienced unprecedented growth,
calling for tremendous amounts of
new

production of

gen¬

and Fed¬

power

have

event

misconceptions.

industry is

appreciative of

since World

the political activity of advocates of socialized

.

Utility

electric

as

bills
stable.

"some unpleasant

to

the

materials and other services
have steadily risen since the end
of World War II, "electric
power

en¬

and the opportunities the industry has

fuel, but also calls attention

of

products.

trial wages, taxes and the cost of

ex¬

making, to the be¬
capitalism under which

neficent
we

eral

power,

power

raw

and reduced

Cites far-reaching technological improvements in

ex¬

supplying services for the Amer¬
ican
people
are
grateful
for

made, and

power.

automation and atomic

use

facts," such

of

business

pansion of
engaged

increase in residential electric
consumption

t erprises

e n

Branch,

to

avail-

creation

Harllee

producing

to

probability of

a

0.6%

plants. For
the price
represents

industry

purchased

finished

increase in kilowatt capacity within the

vast

electric utilities offer investors

erating and transmitting electric

are

made

new

of

out"

that

investment

ble

Points

hanced income due

largely
through your
efforts

decade.

next

free enterprise

system.

and gives estimates of the

power,

industrial

average

only

Spokesman for electric utilities reveals the tremendous growth of U. S. electric

the

of

the
of

America,
are
an
exceeding¬
ly
important
part

American

President, Edison Electric Institute; President Georgia Power Company

in¬
of

37

Utilities—Opportunity and Challenge

great privilege to be in¬

a

(2561)

I

on

wonder
page

56

38

Volume 182

(2562)

Number 5490

The Commercial and Financial Chronicle

..

.

Report of IBA Industrial Securities Committee
*

Vice-Presi-

Edward Glassmeyer,

Edward

New
City, in his capacity as
Chairman of the Industrial Se¬
Blyth

of

Hent

Committee

curities

reveals that between Jan. 1, 1953 and June 30,

the

of

industrial securities have been added to the

In¬

America,
report of the

vestment Bankers of
released

1955

the

Committee

held

at

.

f

thus

Annual

The text of the Report follows:
the purpose of this report

near a

in

*

securities was practically
equivalent to the net increase in
assets of pension. funds from 1951

of industrial

groups

record level, and only 6% below the peak

to

pension funds

three

of 1953.

year

1954.

in

plant and

new

billion. The increase
pension fund holdings of cor¬

porate

active markets in this

more

2.

equipment is still

1955

exceed $12 Mi

all-time high, and expenditure of

an

three years, by the end of
pension fund assets would

past

new

the

rate of growth over

average

previously outstanding,

Points out profits of almost all

companies have reached

from

Fla.,

Hollywood,

1955, $3% billion of

amount

contributing to increased trading activity and

category of investments.

Association

the

of

28 to Dec.

Nov.

44th

the

at

Convention

Glassmeyer, Chairman of the IBA Industrial Securities Committee,

Inc.,

Co.,

&

York

Thus, most of the growth
during the last

corporate

into

went

years

stocks and bonds. Holdings

of cor¬

«For

the

.:

"in¬

term

dustrial

cor¬

porations" inall

eludes

the

of

the

in

United

States but

ex-

eludes all min-

retire

to

used

net

proceeds

other

net

proceeds

securities.

to use.

as

The volume of securities
p r

i

t

v a

months

for

ly

e

of

1955

the

placed

first

amounted

Table III sets this forth in

were

Table II sets forth the division of

manufactur¬

ing companies

total

eight
to

ap-

proximately $2.2
billion
which
was only slightly under the cor-

more

detail.

petroleum industries have revised

increasing

their estimate downwards.

Sales and profits after taxes for
industrial companies reached an
all-time

high

during

the

second

quarter of 1955 reflecting the high

production,

and

half

activity, steel
production,
earnings
after

auto

year

sets forth

Table VI

expenditures

corporation
plant

new

on

of 1954

and

Although

discussion

a

of

porate pension funds is not
cise

function

this

of

rise

a

ccjr-

to

bond

committee,

o£
for

estate

Security offerings of industrial

o n s

for

cor-

first

the

were

higher tharrfor the

eight

corresponding
i.r.

r

Bonds,

and

Common

Preferred

Stock

Stock.

'

Approximately 45%

of

plant

equipment

and

and

approximately 25% were additions to working capital. It is
interesting to note that only 18%

placements

accounted

rable 1954 period. It is interesting
to observe that the annual rate of

approximately 37% of total
offerings
and
public return after taxes on stockholders
offerings accounted for the bal- equity amounted to 13.0% in the
ance of 63%. Thus, private place- second quarter of 1955 and comments continue to account for a pares with 11.4% for the previous
high percentage of corporate new quarter. Profits after taxes per
issues.
dollar
of
sales
for
the
second
Because of the large

volume of

quarter of 1955 were 5.5 cents, the

new issues in recent years, it is
esj.jma£ecj
th'at
there
has
been

highest rate since early in 1951.

added

trial

groups

after

taxes

of

approximately $31/2 billion
industrial

new

Jan.

of the net

proceeds received by industrial
corporations were applied to expansion

private

corporate

substantially

period in 1954. Table I sets forth
the
division
of
gross
proceeds
among

It is inter¬

government

that

note

showed

little

thr^e

year

pension fund growth have a tre- period,

companies.

t i

three times the hold¬

holdings

nonetheless

real

months of 1955

1,

1953

securities since

to June 30,

1955, to

the total amount of industrial

Table IV breaks down by
of

industrial

The

volume of past and

in

recent

bearing

trends

in

"
At

"
all securities

on

the

bonds,
stock

and

com-

ment

bonds.

pension

corporate

administered

by banks and

panies directly but excluding
those

administered

companies,

amount

of

assets.

at

$2.1

of

billion
billion

$2

It

The

the

Jan.-Aug.

for

by

assets

were

$280

million

Preferred

Stock

Common Stock

-Years-

Jan.-Aug.

-

1953

1954

1954

than in

more

below the peak year

Total

$2,231,651 $1,536,330 $2,268,040 $2,253,531

—

TABLE

will

15%

expend

more

than

Jan.-Aug.

Plant and

New

amount

of Securs.

Other Purposes

242,631

120,918

TABLE

HI*

Jan.-

Oct.-

M-rch

Dec.

Sept.

industries expect somewhat lower

1955

1955

1954

1954

New Issues._ $989

$982

$739

656

437

Net Change $333

$545

outlays this

year.

In the non-durable

the food,

textile,

estimate

expenditures

they

had

this year while the

-Data-

June

1954

1954

1953

$841

$598

$1,887

536

353

221

$2,797
1,319

$203

$488

$377

$1,478

$1,227

-

up

their

over

the

♦The
set

made pearlier

above

forth in

figures

table

chemical and

figures
exclude
the .public by com¬

have been computed on a basis different from the
therefore, will not agree. The figures in table II

II and.

privately to foreigners
panies affiliated with the issuer.
securities

sold

and securities sold to

-

and its Instrumentalities

State, Municipal and Revenue Securities
'

Bonds, Preferred and Common Sfocks of Industrial,

Utility and Railroad Corporations

GRANBERY, MARACHE & CO
f

Acceptances

_

Members New York Stock

Securities of the International Bank for

Development

]

Canadian Bonds

•

l

"

Underwriter

•

•

Distributor

'

.*

'i

Philadelphia




Pittsburgh

Cleveland

I

-

*

arid

NEW YORK

Bostom

„

Municipal Securities

Dealer

*

V

New York

'

•

Underwriters and Distributors of Corporate

Foreign Dollar Bonds
.

;

■

Exchange and Other Exchanges

f
i

Chicago

San Francisco

660

and rubber

companies have stepped
programs of

Retirements.

goods group,

paper

Annual

April-

July-

June

Non-ferrous

212,753

205,571

$2,186,946 $1,511,732 $2,234,016 $2,217,721

April-

1954.

n

1953

1954

$790,566 $1,009,494' $1,324,675
522,813
829,413
590,173

metals

in

Years

,

$1,547,915 $1,313,379 $1,838,907 $1,914,853
396,400
77,435
189,537 *
90,115
;

Total

that of the record

as

558,534

Money...

Retirements

1954

$989,381

Equipment..

Working Capital

1954.

Jan.-Aug.

1955

approxi¬
in

II

(000's omitted)

-

same

rate

Reconstruction and

of

$1,489,572 $1,242,792 $1,876,604 $2,003,756
83,791
167,059
227,854
80,783
658,288
126,479
163,582
168,987

Bonds

are

Bankers'

ac-

!

I

1955

electrical machinery firms
planning outlays 14% above
last year while the stone, clay and
glass
industry is
expecting to
make record outlays 28% above
last year. The automobile indus¬
try will spend approximately the
Non

Company Stocks

on

(000's omitted)

1955, the iron and steel in¬

mately

Bank and Insurance

noted

actual market value.

remaining

counted

TABLE

future

Expenditures for 1955, including
anticipations for the second half
of the year; are compared with
outlays, for 1954 in Table V.
dustries

'

govern-

be

should

1953.

In

*

common

of

stock is carried

common

understates

this

If

pension

1954,

the books at cost which currently

insurance

projected

were

that

estimated to hold

were

billion

$11.2

by

of

end

funds

1954

the

funds held $6 billion of corporate

general, the flow of capital and

of

spend $11.2 billion for plant and

of

Securities of the United States Government

during

change

markets for securities. At the end

financing is truly related to the
decisions of management to spend
amounts for additional plant and
equipment. In 1955 it is estimated
that
industrial
companies
will

1954 and 6%

Investment Bonds and Stocks

corpora¬

mendous

the

tions.

se-

curities outstanding. The effect of
this additional amount upon the
investment banking industry is
profound, contributing to increased trading activity and more
active markets.

indus¬
the sales and profits

equipment, slightly

Public

while

billion

$3

of $1.4 billion.

financial and

p o r a

were

esting

a pre¬

munication,

Glassmeyer

by

ings at the end of 1951, reflecting

ing, transport- responding figure for the same taxes amounted to $7.2 billion, an
tation, com- period of 1954. The total volume* increase of 31% over the compa-

Edward

than doubled,

more

stock holdings at the end

common

equipment by industry groups.

level of construction

First

porate bonds

PHILADELPHIA

:

Volume 182 vNumber 5490

.

.

The Commercial and Financial Chronicle

.

cash, $420 million preferred stock

to

and

the early 1930's.

$440 million of miscellaneous

assets. It is

trend

of

stock

forth

set

as

by

in

pension

Table

the highest point

borrowed

funds,'

violent

VII.

be

can

since

market

plays

a

VIII

deferred

new

the

distribu¬

years
t

for

each

and

One

of

of

the

past

investment

77

of

with

recently

re¬

abandoned.

or

•

.

.

therefore,

^

.

Edward
:•

...

.

restraint

has

issuance

of

or

plant

and

V

enor¬

Edward

""

&

Co.

First

had

in

cussed

security emis¬

Southwest

the

foregoing

sections.

slowing down of
pansion

of

-

safeguard
and

too

a

the

ex¬

rapid

economic

However, in

some

totals

to

areas

racy

.;

Federal

Reserve

Board

on

next

1951

Purchases of common stock

■

Sales of

securities

through
the

will

1956

at

active pace

continue

of the basic

material and statistics set forth in

this

derived

Fairman

Food

$20,916
1,778

Tobacco

\

rerccnt

1955

Change

from

Inc

Herman B

1955

+

2

$408

$456

+ 3

72

82

+ 14

1,835

5,618

6,543

+ 17

48

166

3,233

3,322

+

3

30

38

+ 27

2,195

2,486

+ 13

56

148

+ 161

1,508

1,763

+ 17

24

37

Paper & allied products

4,108

4 63?.

+ 13

2'.6

234

Printing &
Chemicals

2,660

2,795

+

8,766

Gilbert W.

Leather

+ 33

6

1,063

1,141

+ 11

11

18

2,921

+ 20

1C0

125

+

3
7

+ 64

1,493

+ 12

21

34

+ 62

3,470

+ 18

203

303

+ 49

4,104

+ 21

220

341

8,669

+ 22

352

C07

+ 72

'

6,117

6,686

+

9

200

243

+ 22

Machinery (excl. elec.)
Electrical machinery—

10,202

+

1

482

522

+ 8

7,522

10,332
7,593

+

^'Transportation equipt.

5,508

5,725

Motor vehicles & parts

11,383

14,537

Instruments, etc

1,855

Miscellaneous

2,129

1,703
2,203

$123,472 $135,602
♦Excluding

420

J

2,085
321

i

828
253

1,198
355

-1,764
444
™77™T

'<

$7,779

$9,479

$11,250

J

Qwn

215

company

503
184

assets

assets

1

235

340

+

1

+ 4

200

217

+

C31

1,079

8

92

93

+

3

49

54

"
'•

V

v

_1954

■
•

Jan.-

April-

1955

March

June

$5,091

$5,365

1,210

754

871

$1,201
190

Pranaiy nome. rousmetals

412

246

225

69

Electrical

475

439

449

694
1,486
361
1,110

788
1,425
461
1,147

95
160
321
78
288

$1,309
200
69
110
171
402
88
269

Dec.

'1954

and

Textile

Paper

p-cds

&

Chemicals

industries

beverages:

mill

allied
&

6,260

5.948

5,828

'765

378

331"

-

-706-

♦

1,368
197

JL55II

.

V

184:

88

455

492

104

1,032
2,713

309
530

117
292
696

131

152

32

35

29

404

products

_________

gOther nondurable goods—

451

403

115

118

Total

$ll,li)3

$2,569

$2,859

$11,908

$11,038

<•

,

■

-

$1,278
211
45
102
188
321
106
306

1,517.-

^

$1,552

248

257

66
115
214
402
1U5
303
.

+

1,603

goods industries—
Nondurable goods industries
Total

1955

$5,038,000,000
5,948,000,000

162

81

80

92
231
490

120
230
,30

147
284
766

132
2

35

30

36

42

' 96

113

104

44
90

$2,249

$2,795

$3,075

$3,074

$2,965"

,

■•■Including motor vehicles.
tEstimates based on anticipated capital expenditures as reported by business in late July and
1955,
'^Includes fabricated metal products, lumber products, furniture and fixtures, instruments, ordnance and mls"
manufactures,
glncludes apparel and related products, tobacco, leather amd^leather products, and punting ana
publishing.
'
'.

cellaneous

1

UNDERWRITERS

+5
—2

r„

+1

DEALERS
—

BROKERS

•

Distributors

Established

i, Dealers

1868

PUBLIC UTILITY, RAILROAD
INDUSTRIAL and MUNICIPAL

Spencer Trask & Co.

SECURITIES

25

BROAD

STREET, NEW YORK 4, N. Y.
Members

New York Stock

W. C. Langley & Co.
Members New York Stock

Exchange

ALBANY

Broadway




New York 6, N. Y.

Tel. BArclay 7-8800

Exchange

BOSTON

American Stock Exchange

GLENS FALLS

CHICAGO

,•

NASHVILLE

115

727

-y
..

•
,

•

August,

4

% Change

$5,365,000,000
5,828,000,000

$11,038,000,000 $11,193,000,000

Underwriters

1

179

92

.■

+71

V
1954

Durable

430 >
14
278'

196

....

auto.

TABLE

74

2^8

77

+31

—

'

144

170

114

104

$2,645

Sept.

$1,4<2

June

.

tOct.Dec.

124
277
776

111
252
682

1,428,
2,663

tJuly-

180»••
86

75

1,130
2,684

409

v

1,186

1,438-

204-

■

81

331

'

161

products
prods.

allied

Petroleum & coal

,

812

»•'

""CduH^—;

$1,063
154
41
89
lo8
2(2
88
260

April-

Jan.March

1,592

$1,207
169
53
102
165
333
80
255

1953

r

r

•

1955

,

$1,373
195
-55
132
198
379
115
298

Sept.

$5,648

•

>

,

..

,

Oct.-

July-

goods industries
Primary iron and steel—

Durable

Pood

|

.j

VI

+ 10

+ 10 $5,517 $7,216

.

.

8

+ 23

,

$6,356

+ 55

7,077

Fabricated metal

367

1,490
292

;

Nordurab'e

jj

1,085
257

(Millions of dollars)
,

+2o

3,388

Primary iron & steel-

•

i^i

718

'

1,339
2,931

Stone, Clay and glass—
Primary nonf err. metals

1954

$28Q,,j
2,001
6,020

Expenditures of New Plant and Equipment by U. S. Industrial Concerns 1953-1955

1,239

+

+

;-j

305

Total

tother durable goods

110

416

$299*
2,040
4,928

Kuhn, Loeb & Co

+ 20

777

374

.

3,931

Other

+54

102

10,417

<

247

Common stock

r

797
1,169...
346

585

Prods, of petrol. & coal

\
1953

1952

2,953

.

stock

Preferred

Other companies
Kahn

machy". & equip.
Machinery except elec._—
♦Transportation equipment
Efcone, clay & glass prods.

5

Petroleum Refineries—

'

+246

+ 13

9,901
11,035

■

J

-

(Millions of dollars)

Corporate bonds

,

/

+ 12

>

Lumber & wood prods.
Furniture & fixtures—

s

Joseph

Change

$21,414

2,442

V

Cleveland

Percent

1954

Apparel & fin. textiles

Rubber

Comnanv

Chicago
§t>

'

jj

~~~

&

,—Profits After Taxes—>

Textile mill products—

publishing

Harris

jj

t

$256
1,949

TABLE

—Half Year—

$539

$378 \

Cash and deposits
$279
U. S. Government securities 1,975

1955

Sales—
—Half Year—

.j
""

...

lf)51

*

1

•*

-

/
-

-

-

David J. Harris

(Amounts in millions of dollars)

1954

124

TABLE VIII

IV

First Half Year 1954 and

^

*

+ $328

..

i]

$663

51

—

$257

—-

"

'

Fox

New York

TABLE

INDUSTRY GROUP

*

Joseph, Mellen & Miller, Inc.

rate for the fourth time this
year

were

Net purchases

'

greater

Nov. 17th to increase the discount

report

■>"

$429

29

.24

■)»■

1954

1953

-

$357

$281

stock—.:—

:—

*

New York'

in¬

of 1955.

Approximately all

i

1952

r

accu¬

new

or

common

..

P. Fred Fox & Co.

it

year

that the market for

well

that

for

Fred

-

.1

»'

VW+i

,

P.

1
;

San Francisco

.

.

TABLE VH

New York

anticipated

predicted with fair

dustrial

to

mount, prompting the decision of
the

be

can

the

continue

and

curity offerings

health

economy.

credit

announced

\

Wulff, Hansen & Co.

(Millions of dollars)

rtanfiir *^ 90mPany» *nc*

plans for capital spending and'se¬

credit—designed

the

stability of the

borrowing

the

1
' '

Wooloomes

Paul

Space, Jr.

Company

.Henry J.,Blackford, Ja.

It is the conclusion of this Com¬

t1

:

Chicago

Inc., Savannah

-

J

-

Dean Witter & Co.
-

Johnson, Lane, Space and Co.,

a
mittee that the outlook for emis¬
+ .v .v
.
In the opinion of this
Commit-: sions of new industrial. securities
Joshua A. Davis
tee these policies have had some
Blair & Co. Incorporated
in 1956 is an optimistic one. From1 ■•+
—

A.

York

William M. Witter

working capital expenditures dis¬
..

objectives

Morgan Stanley & Co.r
New

Schwabacher & Co.

Julian

'

Walter W. Wilson

Robinson..

H.

7

i

Baltimore

m

-

New York

Thomas Beckett

and

v
,

Cleveland

.

Son

LeRoy A. Wilbur
Stein Bros. & Boyce

Co.

..

-

Philadelphia

'

New York

#

Fulton, Reid & Co.

•••■•*

•

Edward F. Beatty
W. H. Newbold's

securi¬

T

Frank B. Reid

-

New York

.

New York

•

Reynolds & Co.

some

equipment

'

1

^?rk J, '

John D." Baker, Jr.

partly

•'

Chairman

Inc'

+

reduced the

industrial

new

Glassmeyer,

-

their

,1

G. H. Walker & Co.

,

Corporation, Indianapolis
John C. Maxwell
-*
Tucker, Anthony &

_

sions.

in

•

]

George H. Walker, Jr.

.

Indianapolis Bond and Share

COMMTTTFF

■

that

it has not interfered

areas,

the

mous

lates to the effect Federal Reserve

success

' ■{
Merrill, Turben ^£o.
Cleveland *
'' s1

Claude F. Turben

-

Mayburn F. Landgraf

,

INDUSTRIAL SECURITIES

do

type have been

any

credit

volume

credit restraint policies have
upon the volume of

t.

•

-Jenks, Kirkland & Grubbs
Philadelphia
*

*

Respectfully submitted,

where

questions asked of ties to provide funds for the

bankers

of

we

any; instance

believe,

credit

four

type of holdings.
the

^

sion.

'+

Samuel N. Kirkland

"

stock

accomplished its objective in

tion of assets of
corporate pension

funds

the

reports> published by the

-

We*

while

shows

re¬

despite the

in

September,

of

securities

security issues.
Table

various

Securities and Exchange Commis-

plans for the issuance of industrial

vital part in the

absorption of outstanding and

know

not

Table VII that the corporate pen¬
sion fund

since

-

39

(2563)

•

from the data in

seen

arid

money

fluctuations

"

It

■

Although these policies have
sulted in increasing the cost

interesting to note the
purchases and salek of

common

2%%,

*

•

SCHENECTADY

'

WORCESTER

^

40

The Commercial and Financial Chronicle

(2564)

Thursday, December 15,1355

.,.

Report of IB A Railroad Securities Committee
Charles
of

W.

R.

York,

IBA Railroad Securities

Chairman, submitted the
of the Railroad

as

Annual

L. Bergmann, partner
Pressprich & Co., New

Securities

Committee

the 44th

to

of

Association

Bankers

chasing

America, held at Hollywood, Fla.,
Nov. 27-Dec. 2,
The text of

ment

consideration both the overstatement of railroad earnings

Annual Convention of the Invest¬
ment

44th Annual Convention of the Association that, taking into
and the reduced pur¬

reports to

mann,

Report

greater degree of competitive op¬
portunity and assured continuity
of earning power for the railroads.
An important recent develop¬

Committee, under chairmanship of Charles L. Berg¬

as a

million of

money was

the

in

basic

the

so-called

rate
Parte

Ex

175 rate increases which had been

granted

whole is doing "very well." Points out in 1955 only about $33

new

the decision of the ICC

was

incorporate

structure

of the dollar, it is difficult to justify the view that the railroad

power

industry

1955.

the Report follows:

to

1952

raised by the railroads by sale of long-term bonds.

on

and

temporary basis

a

extended

time thereafter.

time

from

in;
to

This has removed

uncertainty
regarding
the
prospective level of railroad gross
one

nation'^Cliss'^I

railroads will

re-

nort $900 mil'

lion of net income

In onlv

three

other
1929

vears

1942

1953

and

has

in-

the

dustry

shown

such

a

high

level

of

net.

However
a

the

p p a r e n

near

the current inflation

Both

tly

record

-

fates of 3% to 4%. The acceleratecl amortization rate, over and
above the normal depreciation
rate> *s not included in the opersting expenses of the carriers, but
the resulting lower income tax
payments are included. In 1953,
such tax deferments amounted to
$146 million, in 1954 to $149 milli°n> an(* it is estimated that in
1955 the figure will be about $182
million.

in

the railroad income accounts and

the potential deflation when the
not
so
im- deferred taxes have to be paid are
pressive when a source of concern to analysts,
Charies L. Bergmann
properly
aninvestors, and railroad manageaiyzed. First ments. This committee has rethe purchasing power of the 1955' ferred to this matter in each of
earnings

and

1953

aqfri

Man

of

than

dollars

1942

the

net

the

and

1929

is

•

.

^

less

dollars

less

income

net

i

43%

are

almost
dollars.

its annual reports since
..

income

50%
Sec-

t/~~\

accounting

will

changed to provide for

more

thodox

have been overstated from 13% to

significant that

ooor

f

because

the

of

manner

in

whether the ICC

regulations

ondly, railroad earnings since 1952

28%

1952, but

,

it cannot predict

practices.

counting firm

a

be
or-

it is

However,

well known
4-4.-

has

ac-

j

the

petitioned

which ICC accounting regulations

regulatory body to modify its

require the treatment of acceler-

counting

ated amortization

accelerated amortization.

facilities

on

quired under certificates of
sity.

The

1955

earnings

ac-

neces-

may

be

regulations

Taking into
the

of

railroad

inflated because of these account-

earnings and the lesser purchasing

ing regulations by 25%.

power

In

the

years

the

last

Defense
has

one-half

Transport
certified,

defense

facilities

which

and

(Jan. 1, 1951-June 30, 1955)

tration

gency

four

purposes,

costing

about

Adminis-

for

$4.7

$3

erne?-

railroad

billion

billion

is

of

being

amortized for tax purposes over

60-month
at

the

pared

period,

rate

with

of

i.e.,

20%

a

normal

a

write-offs
year,

com-

depreciation

of the railroad dollar, it is

difficult

to

justify the views

ex-

pressed by certain groups that the

industry
well."

as a

whole is doing "very

However,

favorable

one

aspect is that the 50-cent net income

dollars provide a substantial

cushion for the industry's annual
fixed

and

contingent

charges

of

approximately $425 million.
Gross

capital

by

certificates

obligations.
small

been

the

of
es-

are

conditional

result

a

the

financing has

comparison

by

\3markets. The
^°t
tal

with

h

nf

rr>«

volume of equipfinancing undertaken
1955 probably will total

trust

during

under $200 million, less than onethe

when
was

amount

in full

cording

to

the

AAR

car

orders

swing.

the

over

of

freight
may

indicating

a

the next two

of $1.2 billion.
we

of

year-end

145,000

capital outlay

this,

the

ac-

estimate

backlog

at

1948,

program

However,

recent

a

approximate

years

in

sold

dieselization

the

In view of

would anticipate

a

large

amount of equipment financing in

1956 and 1957.

'

Only about $33 million of

new

through

the

was

raised

railroads

tlements

It

is

sale of long-term mortgage bonds,

but the volume of refundings in-

railroad

than

in

not

agreement
ther

requesting

on

of

new

offset

to

with

filed

be

increase,

the

ICC.

indicated

higher operating

A

ICC release indicated

recent

than

less

one-half

freight traffic.
with about 60% of

This compares

the

on

"^ilroad
cessful,

it

many6years&

hi

If

total

recently

as

we

be

should

the

creased

believe it will be,

as

carriers,

additional similar efforts.
*n spite of the relatively low
volume of railroad financing in
recent years it should not be inferred that the railroad industry
is n°t potentially a seeker of a
large volume of new money,
Estimates by responsible spokesmen ^or the industry suggest that
the industry should spend from
$10-$20 billion over the next 10
years in order to keep pace with
of

needs

sums seem

so-called

is

railroads

that

trailers

own

trailers of
or

both.

The

being made

service

change

is

but

are

being

age to

also

it

public.

offers

the

For the railroads

whereby

means

in

Detroit_

this

high

the

as

traffic

type of

traffic

are

the average freight

operating costs, particu¬

larly terminal expenses,

This, in turn, de¬

can

While the

stantially less.

The

are

sub¬

common

car-

_

Coburn and Middlebrook Inc,

Los Angeles

Harbison & Henderson

Blair

_.—H. A. Riecke & Co, Inc,

Pittsburgh__

Securities

rate

investor confidence in the in¬

on

as

freight

.Dallas Union Securities Company

Philadelphia.
•

not

degree

pends) on the development of a

Hartford

Over the Counter

capital markets

intercity

an

heretofore

important part of the

im¬

rates

dustry's future.

out.

worked

obtained from

on

inter¬

between

the railroads, the truckers,

and the

small size by

important

only

indivi¬

The service is of obvious advant¬

the much pub¬

our

not

arrangements

carriers

the

carriers,

by

lost

an

in

cars,

motor

available

railroads

dual

flat

on

common

be quickly recaptured.

to

today

handling

are

provement program. However, the

depends

the

"piggy-back" service. It

"piggy-back service" either their

system.

$100 billion highway

railroads

of

aggressively

understanding

our

33

huge for the rail¬

with

number

a

promoting

are

country for an

our

transportation

In order to

|

part of the traffic

some

which has been diverted to motor

of

forerunner

substantially.

recapture

extent to which such sums can be

Dallas

1950 and

as

handled by motor carriers has in¬

^uc-

..

Cleveland

total

the

of

volume of intercity

This is the first 75% 25 years ago. In the same
common stock fi- period the relative proportion

underwritten

licized

Chicago

an

granted

expenses.

shares

offering to its shareholders

comparison

We Make Markets

Such

without an
undue time lag, and after allow¬
ing for exceptions and possible
competitive
concessions
should
offset

if

rights basis.

Such

I

the

increase and other added
expenses but ultimately a petition
seeking a 7% rate increase may

consid-

common

roads but shrink to

Private Wires to:

fur¬

wage

Jaj*roa<* comPany has just
arrangements for the

issuance

the

..

in

be
a

that in 1954 the railroads handled

adequate

.r.

manage¬

to

appear

increase

rate

be
1956

may

higher in

Railroad

1955.

do

ments

bill

wage

million

$300-$325

completed

a

still

are

cated thus far it is estimated that
the

ered likely that these preferred
stock-for-bond exchanges will be
undertaken by other roads in the

for

have

been reached,
being negotiated.
On the basis of the pattern indi¬

others

have sold income debentures to

debentures.

are

demands: A number of set¬

wage

refund preferred stocks and certain other railroads offered to
their preferred stockholders the
opportunity to effect a voluntary
income

On the other hand, the
faced with increased

revenues.

all corporate future.

huge total of

ment

creased substantially over 1954.
Included in the total of refundings is the largest single piece of
railroad financing ever undertaken in the history of the railroad industry, namely, the $280
million First and Consolidated
Mortgage bonds sold by the Baltimore & Ohio Railroad to refinance all of its underlying mortgage debt. This ambitious piece
of financing was undertaken by a
nationwide group of investment
banking houses. Also during this
year several railroad companies

equipment exchange of their shareholders for

of

and

As

railroad

of

amount

money

expenditures

Class I roads during 1955

issuance

.the

trust

salcs

half

both

consideration

overstatement

ac-

regarding

timated at $872 million, and are
substantially below the $1.1 billion of average annual expenditures over the last 10 years. The
lesser amount of capital expenditures this year may be attributed
in part to the 1954 decline in
earnings and in part to the fact
that the huge dieselization program of the postwar period is
nearly completed.
As we have noted in previous
reports, it has been the practice
of the railroads to rely largely on
retained
earnings,
depreciation
funds, and working capital for the
sums required for their additions
and betterments programs. The
balance of the required funds has
been obtained for the most part,

Arthurs, Lestrange & Co,

8- Co.

INCORPORATED

Business continuous since 1890

St, Louis

Underwriters and Distributors of
and Railroad Securities
\

'

* ■

V-

M

.

_

,

•

•

Municipal, Utility, Industrial

Equipment Trust Certificates

Bank and Insurance Stock
4

-

(

•

Department

Troster, Singer & Co.
Members: New York

44 Wall

Security Dealers Association

Street, New York 5, N. Y.
Teletype NY 1-1109

Telephone DIgby 4-4000
74

TRINITY

PLACE

NEW YORK

6, N. Y.
Private Wire

Telephone HAnover 2-2400




Teletype NY 1-376; 377; 378

New York

Albany
Kansas

City

System Connecting

Buffalo
Los Angeles

/

Philadelphia

Boston

Detroit

Rochester

Flint

Chicago
Grand Rapids

San Francisco

Toronto

Volume 182

Number 5490

.

.

The Commercial and Financial Chronicle

.

41

(2565)
rier trucker utilizing
and tear

saves wear

this service
his

equip¬
ment, reduces such operating ex¬
penses as fuel, wages, highwayuse taxes, et cetera, and in addi¬
tion can provide a more reliable
all-weather

on

service.

The

gains the advantage of
liable
from

and

a more re¬

relief

some

highway congestion.
discussing the current status

In
of

service

public

the

railroad

industry stress
should be laid on the high calibre
of
many
present
day manage¬
ments.
The
adoption of budget
controls

the

and

businesslike

ap¬

proach to the relationship between
and
expenditures has
been reassuring to investors. Pub¬
revenues

selection

of

carriers.

This highly

private

inated

the

of

monopoly

characterized

our

for-hire

competitive
system has elim¬

transportation
which

and

economy

ago.

'

element

this

segment
30

some

years

'

the

thoroughly

handicaps

under

which

they labor because of out¬
moded regulation and transporta¬
tion

policies

are

seeking to bring
ment

of

In

their

about

better¬

a

spite of the forward
there

lems

which

tion.

In

strides

prob¬

many

require

certain

may require

purely

still

are

their

atten¬

instances

these

the subordination of

selfish

attitudes

for

the

dations

break

general

classifications:

tive action is needed.

"Our

the

at

lowest

cost

in

the

use

sources.

In

carriers

are

this role

the

common

not per¬

are

mitted to utilize their facilities to

of the

effectiveness

because

tight rein imposed

by government

largely outside their control.

carriers,

such

improving service which shippers

financial

measure

capacity of carriers to
their plants.
This is a

improve

national and not

lem.

If

there

the chain
credit

the

on

it

is

link

weak

a

redounds to
the

cf

regional prob¬

a

the

entire

in

dis¬

not

view

with

problems

of

companies
Rather

effort.
to

the

in

it

problem

detachment
less

It

prosperous

another

should

be

well

may

region.

viewed

be solved

to

the

as

a

by mutual

be necessary

common

These

car¬

to

ways

recognize

and

competition

for-hire

that

faced with large

carriers

by

not

ex¬

bur¬

dened with similar public respon¬

sibilities.
needs

must

also

be

considered in any national trans¬

port policy, and
must

the

assume

released

ommendations

motor

has

waterway

common

carriers

major share of

rec¬

developed,

no¬

mittee

is

free

competitive

the

shippers'

contended
rate

that

some

and

wars

on

fear

a

opportunity

business.

this

will

ultimate

It

lead

is
to

destruc¬

tion of certain forms of transpor¬

tation.

Actually, under the safe¬

guards
such

suggested

fears

far fetched.
as

forms

the

report
and

Rather, it would

ap¬

if the presently sheltered

of

preserve

transportation

the umbrella

competitive
groups

in

unfounded

seem

have

voiced

beginning

fearful

the

over

of

Cabinet

the

opinion that the

Committee

report

report

is

rather

Committee

rec¬

are

discrimination

promote

have said

so

times

than

words.

Respectfully submitted,

pro-railroad

a

report." The end
will be the public

beneficiary

which will have lower cost trans¬
portation made available. The re¬

port fails

as

pro-railroad report

a

RAILROAD SECURITIES
COMMITTEE

Charles L. Bergmann,
Chairman

because it does not deal with two
of

the

most

pressing

traffic.

One

is

"transportation

R. W. Pressprich & Co.

problems

which
plague
the
railroads
in
their competitive effort to obtain
the

New

so-called

rendered by common

ond

transportation.

is

the

The

various forms

New York
Harold F. Carter

Hornblower

sub¬

sidies which exist for the advant¬

of certain

age

types of transpor¬

tation but not for all.

public aid programs and other

subsidies but offers

real

solu¬

To ask the railroads to

tion.

com¬

be

for

the

no

shippers'

these

business

disadvantages

may

likened to sending two boxers

into

a

prize ring but asking

fight with

his

back.

On

the railroads

pete

for

obvious

point

other

hand, if

effectively

traffic

most

strate
to

to

in

spite

serve

economical

not

fully

fullest

well.

the

form

of

For the

their

ability

Thus, while

approve

of the

we

in

the

right

do

Cabinet

Committee Report we feel it is

step

—

1

Bank

and

Decker

American

National

Trust Co. of

Chicago, Chicago

Francis

I.

du

Pont

&

Co.

New York

V. Theodore Low

;

Bear, Stearns & Co.,
New York

Samuel B. Payne

Morgan Stanley & Co.
New York

direction

George E. Richardson
Vilas &

of

transportation.

the

Paul

com¬

their inherent advantage

land

O.

a

and

Hickey, New York

Alfred J. Ross
Dick & Merle-Smith

New York
Samuel L. Varnedoe

Varnedoe,

Chisholm

&

James D. Winsor, III

Yarnall, Biddle & Co.
Philadelphia

,

Wendell W. Witter

Dean

Witter

&

Co.,

San Francisco

overhauling of rate division prac¬
tices, and special compensation
for

the

more

service,
pense."
valid

costly

such
These

today

elements

terminal

as

comments

when

as

of
ex¬

are

Offices in:
'

as

NEW YORK

originally

BROOKLYN

made.

ROCHESTER

Earlier
ferred

degree
the

in

this

the

to

of

report

need

for

investor

future

suggested

that

providing

the

re¬

SYRACUSE

greater

confidence

the

of

we

a

railroads

this

PHILADELPHIA

in

ALLENTOWN

and

depended
industry with

LANCASTER

on

SCRANTON

a

YORK

greater degree of competitive op¬
portunity and continuity of earn¬
ing power. Both of these objec¬
tives

ATLANTIC CITY

lyftolds & Co.

difficult to achieve under

are

twin

the

moded
the

handicaps of an out¬
regulatory philosophy and

absence

of

sound

a

national

been

main

office:

120

the

these

was

undertaken

at

VINELAND

WINSTON-SALEM

RALEIGH

Broadway, New York 5, N. Y.

subject
of
intensive
study by a number of public and
private groups. The most recent
of

EAST ORANGE

MORRISTOWN

DURHAM

transportation
policy.
During
recent years these problems have

SALISBURY

CHICAGO

CHICAGO HEIGHTS

the

MINNEAPOLIS

direction of President Eisenhower
SAN FRANCISCO

by members of his cabinet.

Their

findings and recommendations
certain
were

aspects

of

the

on

be

to

come

Committee

"Cabinet

excellent

An

known

as

summary

of

was

America.

lected

The

following

quotations from this

indicate the Cabinet

tation problem:

in

place

changes

our

transport

brought about, to
by

government

various

types.

and shipper

have

a

system

assistance

Today's

of

traveler

have available to sup¬

ply their transport needs a wide




Correspondents in:
ALEXANDRIA

©

Brokers in Securities and Commodities

BUFFALO
DENVER
DETROIT
DES MOINES

Investment Advisory Service

taken

large extent,

SAN MATEO

STOCKTON

Markets in Many Unlisted Securities

Com¬

mittee's appraisal of the transpor¬

"Dynamic

® Primary

se¬

sum¬

SALINAS

SANTA CRUZ

SANTA ROSA

the

made

by the Transportation Association

mary

SACRAMENTO

Underwriters and Distributors of State, Municipal
and Revenue Bonds

the

Report."

highlights of the report

BERKELEY
CARMEL
OAKLAND

problem

released earlier this year and

have

of

Underwriters and Distributors of Corporate Securities

INDIANAPOLIS
KANSAS CITY

LINCOLN

Members New York Stock
and Other

Exchange, American Stock Exchange,
Principal Exchanges

Co.,

Inc., Savannah

consolidations,
co¬
of duplicate services,

ordination

j

"

hand tied behind

the

can

one

handicaps it will certainly

up

the

as

mass

one

j
Weeks.

Charles L. Hewitt

The report recognizes the effect
of

&

Philadelphia

sec¬

of

"""

Tucker, Anthony & Co.

carriers but not assessable against

private

York

Ernest W. Borkland, Jr.

tax" which is ap¬

plicable to transportation charges

to

many

a

given the opportunity to demon¬

appre¬

we

before, it is time for action rather

than

good of the nation they should be

shipper

apparently

rate

As
Com¬

their

over

The

provided the

to

want

head.

who

of

pro-consumer

against

to be based

seem

ommendations

of

and

The objections of

of

com¬
urge
that implementing legisla¬
they are inter¬ tion be enacted to
accomplish the
again
the
report,
objectives.
have

necessary safeguards.
Your Railroad Securities

tation

hension

the

a

re¬

to

seem

pete

capacity such

at

as

Since its

movement

Here

would

the competing forms of transpor¬

of idle

existed

being

was

carriers

shipper groups.

Unfortunately, there

as

was

carriers, representatives

is

reserve

it

the

ested.

for services

report

certain interests

this burden.
no

the

lease strong opposition to its

pear

"Defense

transportation
The problem of

pro-railroad report.

of

are

growing

(3)

before

officially

competitive,

these carriers

empt

Ways

tably from the American Trucking

common-carrier system
must

and

Even

of

considering

we

three

(1)

special government rates.

for

our

carrier

-

system;

of

strong,

into

modernized and financially strong

their economic advantages.

keep

down

implementing the general ob¬

to adapt their services in line with

"When

recommen¬

jective of increased reliance on
competitive forces in rate-making;
(2)
Ways of implementing the
general objective of creating a

and

virtually opposite.

The other

against

modities in which

Association representing all types

have economic characteristics that

industry.

Managers of the more prosperous
companies in one region should

of

Act.

them

on

railroads

as

highly

trucks, while

The

and travelers demand and deserve

depends in large

policy to supplant the present
declaration in the Interstate Com¬

Different

policy.

riers should have greater freedom

reasons

tion

branded by

indispensable.

"Yet these carriers

our

than others elsewhere for

The first is for a revised
statement of national transporta¬

of manpower and other scarce re¬

are

following comment: "Carriers in
some regions are
less prosperous

recommen¬

sult, both common carriers and
the public have suffered, with the
latter losing billions of dollars a
year. Prompt and decisive correc¬

common

good of the industry. In
report for 1951 we made the

specific

merce

fact that

maximum

of railroad management in recent
years

of

competition
has become widespread. As a re¬

aggressively

situation.

number

despite the

ate

comprehensive

although

cf

aware

by

major

dations.

agements,

improved

pres¬

reliance in the event of war."
The Cabinet Committee makes

"Government regulation of
transportation has failed to keep
pace
with this change.
In fact,
regulation
has been
intensified

educational programs. Many man¬

ing

Furthermore,

ent policy tends
to weaken the
financial position of those carriers
on
which we must place

a

modern, mass-production
economy requires a dynamic, effi¬
cient transportation system that is
dependable and which can oper¬

lic and employee relations are be¬

World War II.

OMAHA

PITTSBURGH
ST.

LOUIS

SIOUX CITY

TORONTO

!

42

The Commercial and Financial Chronicle

(2566)

.

.

Thursday, December 15,1955

.

Report of IBA Governmental Securities Committee
On Nov. 29, at the 44th Annual
Convention
of
the
Investment

Chairman Herbert N. Repp discusses the

Bankers

during past

Association

held

at

Holly wood,
Fla.,
Herbert
N. Repp, Presi¬

'

dent

and the impact of these

year

Federal debt management.
contribute

the

of

measures

are

of credit restraint adopted

measures on

Federal securities and

.

a

New

economy.

of

ease" followed

Federal

Gov¬

cal

ernmental Se¬

curities

p o r

i

tivities
the

during

The text of
The

past

in

the

year

of

contrast

with

the

1954 the

1955

investments

policies

Reserve

System

Treasury

business

a>

these

of

a

recession.

sustained

a

indices
of

1954

result

The

time

same

of

hnnH

thp

in

the

aimed at

in restraining the

aspects

in

sirengin

agencies and others

have cooperated

inflationary

were

that
this

evidence of

free reserves
averaged more than $600
million, assuring ample funds for
the expansion of bank loans and
much

During

the

In

system

period of

'

tary policy.

Govern¬

Federal

countering
In

its

before.

the

and

for

a

change in the direction of mone-

year.

mental securities market has been

notable

banking
over

would be

indicator

the Report follows:

year

the

measured

weeks. We suggested
persistent deviation in

any

its

in

past

— the
will—

many

ac¬

c o m m

field

when

ttee,

covering

Herbert N. Repp

in

reserves

re-

the

of

t

policy

the substantial volume of free

was

re¬

leased the

this

of

measure

arithmeti-

The

Reserve.

thermometer reading if you

Com¬

mittee,

meeting here last year
of "active
during 1954 by the

our

described the policy

we

York,

the

in

we

was

mnrkpt

do

m

At
.

^

pointed out that

in

uptrend

might lead

to

a

cessive

longer needed the stimulus of very

credit.

that

allowed to fall until by last summer they had entered the below
level.

zero

This

minus figure is

borrowings at the

ducing the availability of bank
credit has had substantial effect

permitted
to

ences

strong seasonal influincrease "negative free

further and once again
raised the discount rate with the

expectation

of

the basis of

opinion of
restraint

return

long-term
Treasury
risen about 30 basis

on

business

no

has

bond^has rteer^buf to
which

gree,

has

ksser^e-

a

minimized

& Distributors

the

than

more

when

of

the

was

no

for

demand

the sale

At the

Bills.

Government

various

Continuing the security business of

definitely
will be made outside of political
assume

or

less

its

of

business.
System is

working.

in

tain funds to lend for other

It would be

better, possibly, to forget politics

pur-

In the construction indus-

poses.

try, where speculative symptoms

and instead to watch the Board's aPPeared> there ls less exuberreally tangible actions—for ex- ance, and housing starts are expected

which

1956.

Consumer

rising

at

"negative

free

reserves"

and the actual level of discounts

to decline

a

moderately in
credit

rapid

clip

is

but

still
some

Laidlaw& Co.

to

en

excessive

off

Founded 1842

ef¬

—

and

25

Broad Street, New

York 4, N. Y.

January, margin require¬

ments
In

raised.

were

February,

the

Treasury

BANKERS

of¬

In

April,

DEALERS IN

Co.

rate

margin requirements
again. The discount

raised
was

increased

Veterans
nated

to

1%%.

Administration

The

elimi¬

"no-no-down

payment"
mortgages — loans against which
veterans did not even pay closing

INCORPORATED

Exchange Place, New York 5, N. Y.

costs

offered

in

In August, the

Federal

1%%

STATE AND MUNICIPAL BONDS

Boston Stock

American Stock

Midwest Stock Exchange

Exchange

Exchange

Canadian Stock Exchange

New York State Bankers Assn.

American Bankers Association

Investment Bankers Association

discount rate

Reserve

to

Boston, Mass.

•

Bloomfield, N. J.

Washington, D. C.

Princeton, N. J.

•

Oil City, Pa.

•

•

Montreal, Que.

Toronto, Ont.

•

February.

raised from 1 % % to 2 % %

Dealers

MEMBERS
New York Stock Exchange

in cash.

In July, the Treasury re-opened
for cash the long-term 3% bonds

HAnover 2-5620

BROKERS

•

MUNICIPAL SECURITIES

mands.

were

2%

Bank

one
from

all others.

by

was

by

and

Dur¬

ing

the next few weeks a
rate became uniformly effective.
In

September, the Federal Home

Loan

Banks
loans

new

moved

savings

by

For

Banks, Brokers and Dealers

restrict

to

loan

and

associations.
In

Complete Underwriting and Distribution Facilities for

FOREIGN

November, the discount rate
for

raised

was

the

fourth

time,

to 2%%.

The sudden illness of the Presi¬

I

dent

in

late

September

SECURITIES

the

and

ensuing stock market break cre¬
ated uncertainty as to the busi¬

Registered Offerings

Secondaries

Private Placements

Special Offerings

ness

future.

This

resulted

credit authorities
of

following
waiting
for

watchful

the

in

plan

a

some

weeks, during which the average
level

of

"negative free reserves"

MODEL,

showed very little fluctuation.

HORNBLOWER & WEEKS

Nothing
indicate

was
a

reversal

of

policy.

Nevertheless, in the market place
BOSTON

NEW YORK

•

PHILADELPHIA

ROCKFORD

•

•




CHICAGO

.

PROVIDENCE

CHARLOTTE

•

•

.

DETROIT

PORTLAND

WORCESTER

.

•

CLEVELAND

.

BANGOR

DALLAS

•

•

PEORIA

MEMPHIS

the

relief

straint

caused

price of
bonds.

from

additional

re¬

rise

the

some

medium-

and

in

long-term

The approach of 1956 also

stimulated

buying

of

bonds,

in

ROLAND

Members

done, however, to

Established 1888

a

to

is be taken in selling them to ob-

prosperity

Sound

the only goal toward which the

fered, through
a
refunding, a
long-term 3% bond to compete
mildly with private capital de¬

—

regardwill
be

move,

popularity,

time, the

same

actions

further

head

to

In

Underwriters

borrowers money has been available but somewhat harder to find
and more expensive. Lower prices

It seems safer to

each

that

such

possibly speculative—expansion of

Street, New York 5, N. Y.

Suite 3811, 20

that,

money

credit.

founded 1797

&

^restraint,

The me¬
maturity

agencies resorted

fort

W. H. Morton

It is the

Committee

market decisions most

Reserve System and certain of the

48 Wall

more orthodox approach to economic
and
debt
management
problems by the Treasury, the
Reserve Board, and the Council
of Economic Advisors, each working independently,
What have been the effects of
restraint during the year?
For

on

its portfolio of Treas-

part of

sury

brought

increasing.

was

chanism

Reserve

urfco™ JLJm- Uofln?
Reserve credit at a

limiting

credit

SON

election.

an

or

money

ample, the thermometer level at

-

Federal

The

time

Corporate Bonds & Stocks

field, has

in

doubled.

or

Municipal Bonds and

purposes,

Sensitive instrument'

investment

DICK & MERLE-SMITH

the

loss taken by some investors in

most

ROOSEVELT &

easier

your

jnvestment yields. The rate of considerations.

on

raising funds for other

State &

and freer exchange of views
those in Government responsible for economic policy,
This closer relationship should
not be interpreted, however, as
reflecting any change in the independence of the Federal Reserve System.
Rather, the correlation
of
policies has
come
about as the result of a | much
among

aim of restoring the atmosphere
of restraint that was almost lost
during the October pause.
This action of the Federal Reserve System should dispel
any

Reserve Banks. These net borrowed reserves have increased
until in recent weeks they have
reached nearly $600 million—that
is $600 million below zero.
This persistent program of re-

sev-

eral years there has developed a
closer coordination of thinking

reserves"—that is, the difference
between
excess
reserves
and
bank

this

past

by
the Federal Reserve
early next year.
In recent weeks the authorities
eased

reserves"

member

the

over

the popular belief that for political purposes money would be

often referred to as "negative
free reserves" or "net borrowed
now

that

guesses

on

bonds

policy.

apparent

in the banking system was

serves

is

the

points, with AAA municipal bonds based solely upon the System's for bonds have meant that
shovving nearly as much change. judgment of the health of general lender must consider the loss

Shortly after this, when it be-

over-op¬

Underwriters

place.

observation

reversal

came

of

market

the

Another

m

easy money, there was a perceptible change in Federal Reserve
policy. The volume of free re-

story
statistics,

business

timism in the economy and an ex¬
use

than

of

sound

louder

pace

the

told by current business

point
At

of

Chairman

and

including

speak

Discount Cor¬

poration

The

expansion,
credit, and

consumer

Concludes flexible monetary and credit policies

immeasurably to the continuance of

being maintained.
credit

of

120
NEW

New

York

Stock

BROADWAY
YORK

5,

N.

20-24

TELETYPE
NORTHGATE

MOOREGATE,

Private

STONE

WORTH

Y.

LONDON:

&

Exchange

Teletype

4-5300
NY

HOUSE,

LONDON,

to London,

E.

C.

England

2.

1-2525

Volume
.1,'

•

182

r\:."

1

•

Number 5490
•'•

'•

■

.

.

The Commercial and Financial Chronicle

.

'

'*

*

(2567)
marginal
been

borrowing

deterred.

have become

produced

have

may

Municipalities

lenders

mask at times the

conscious

planning new borrowing. In
August, a threatened bunching of
issues

avoided*

was

through cancellation
of

ment

\

there has been
in

term

a

of

the

to

the

banking

real

accom¬

monetary-policy
longer-

capital ■ .markets

become
credit

re¬

disorganized,

conditions

have

not

se¬

funds

curities.

has

the

decline

billion

gages

by

$1

billion.

the public

i
•

billion.

Reserve

At

debt

At

the

has

least

System
$1

billion

$9

by

of

Government

securities, therefore,

have

their

found

hands

of

non-bank

■Largely because of this shift,

contrib¬

tated

raising capital by equity fi¬
nancing rather than by debt ob¬
ligations.

into the
investors.

way

undoubtedly

uted to this orderliness by elimi¬
nating the necessity for mortgage
buyers to sell bonds hastily. The
strong stock market has facili¬

time

same

risen

has

ex-

The

been contained within reasonable
bounds even through bank loans

Treasury in 1955 shaped
its financing
operations to the
restrictions
imposed
by
credit

were

policy and the public debt limit.

pansion of the money supply has

rapidly increasing.*

Much

of

ernment

profits,

and

rapid

and

^

demand

Gov¬

corporations.

large

tax

have

of

'

increase

tractive.

in

accomplishment in this di¬
was placement during the
year of $2.7 billion of 3% bonds
of which $800 million were sold

plant
con¬

for

heavy

rate

made

Additional

short-term

it

securities

issues.

Non-bank

buying at times has

stantial

rallies

market,

leading

in

bring sub¬

the

Treasury

':

whether

changed.

For

on

the

But

to

questions

credit

the

policy

fact

as

had

seems

to

the

balance

of

its

market.

by the issuance
billion of Tax Anticipation

$5

Certificates

Treasury

ferings
in

short-term

met

were

and

Bill

$1.3 billion.

been strong enough to

to

of

re¬

sulted from the temporary invest¬
ment of cash raised through capi¬
tal

relied

These

of

also

cash.

cash needs the Treasury basically

at-

buying

The most tan¬

rection

buyers,
chiefly of short maturities, where
the

maturities

gible

With

business

been

continued to extend

whenever possible.

accruals,

amortization

equipment,

cerns

for

securities has been from

non-financial

high

It

the

bank

offerings

in

totaling

taken by the banks
instance

first

writers,
ferred

increases

In large part, the of¬

were

the

by

and

as

subsequently

under¬

trans¬

through the market to
purchasers

their

as

non-

funds

Our

Committee

continues

of

through
cash

both

a

refunding

offering

effects

on

if

a

Wayne

Los

size

are

sell

timing

3s.

It

will

a

issue

of

opportunities

to

„

Hardin

size

compared
easier
of

to

Bank
San

to

recent

This

one.

three

in

years

extending

the

is

the last

over

mainly

in

Market¬

March,

August,

and
December.
Assum¬
estimate of the result of
present refunding the total

ing

an

the
is

The

Kneass

of

the

resolution

oppose

deal in revenue bonds

as proposed
S.2290 and S.2713. The Presi¬
dent of the Association is there¬
fore authorized and directed to

in

designate such

The Northern Trust

Chicago

before

any

hearings

Robert C. Morris

person

ures

York

persons

Congressional

on

these bills

measures and to
oppose

Company

or

he thinks
appropriate to appear

as

Company

on

other

or

or

any

such

which

is

owned

by

the

Emil

behalf of the IBA."

rent
in

fiscal

New

at

Continued

high business
employment bolster

activity and
hopes for balance
face

cur¬

of possible

Due

in

even

the

tax reduction.

centration
ments

of

under

corporate
the

tax

con¬

pay¬

Mills Plan,

will

again

debt

be

calendar

1956

year

tax

and

be

an¬

K.

FT.

National City

New

&

Co.

York, New York

Bank of

Boulevard,
of

under

Dale

the

W.

manage¬

Thomson & McKinnon

Reuter

Mellon National Bank & Trust

Open Branch in Florida
f

NAPLES,

Company, Pittsburgh

FlaV

McKinnon have

Smutny

office

Salomon Bros. & Hutzler

the

New

at

882

—

Thomson

opened

a

Wood.

York

of

$275* billion

management

of

Kenneth

re¬

June

on

30

next.
In

conclusion,

Committee

your

would

like to re-emphasize that
1955, like the previous two years,

has

been

in

one

the

monetary
While

of

marked

application
and

credit

of

has

change
flexible

credit

policies.

Dominick

will

UNDERWRITERS AND DISTRIBUTORS

continue

be

available

for

all

productive purposes. We are
learning once again to live with

OF

free

markets and

benefiting
S

to

CORPORATE AND MUNICIPAL

in

Members New York Stock

UNDERWRITERS AND DISTRIBUTORS OF

so

the

these

14 Wall

credit policies have on the health

of

SECURITIES

business.

They

are

of

sound

a

and

Street, New York 5

contribut¬

ing immeasurably to the continu¬
ance

Canadian

vigorous

economy.

Dominick

SECURITIES
N.

Discount

Jart&Ace/

Jem

COMMITTEE

Repp, Chairman

Corporation of

New York, New York

Exchange

Milton

72

Montreal

GOVERNMENTAL

Herbert

Members New York Stock

Affiliate

Corporation of Canada9

Respectfully submitted,
THE

Exchange

CORPORATE AND MUNICIPAL SECURITIES

doing are
moderating
monetary
and

from

influences

Dominick

&

been

getting
progressively harder to get and
more
expensive, it has been, and

S. Bosley

National Bank of Detroit

J( 3/.

S,

UNDERWRITERS

DISTRIBUTORS

DEALERS

Detroit
Wendell

Telephone WHitehall 3-7600

T.

Burns

Northwestern National Bank

Corporate Teletype: NY 1-865

•

Municipal Teletype: NY 1-1691
i:*

.

..

..

We have direct wires to the

•-

of

•

Minneapolis, Minneapolis

Corporate and Municipal

Dwight W. Chapman
,

,

American

■

San

following cities:

Trust

Company

Securities

Francisco

F. Newell Childs
Asheville

Baltimore

Cincinnati

Beaumont

Cleveland

Dallas

Beverly Hills

Detroit

Boston

C.

Chicago

F.

Childs

Fullerton

Los Angeles

Houston

Indianapolis

Leesburg

Louisville

Joplin

Nashville

Kansas City

St. Louis

St. Paul
Seattle




St. Petersburg

Established

Securities

Corporation,

San Francisco

The
of

Utica

1

A.

1919

Craft

American

New Orleans.

James
Philadelphia

Company

Galveston

Robert H.
Grand Rapids

and

Chicago

New York

R. S. Dickson & Company
INCORPORATED

Cranford

Atlantic

National

Members Midwest Stock Exchange

Bank

Jacksonville, Jacksonville

Stewart A. Dunn

CHARLOTTE

NEW

YORK

CHICAGO

C. J. Devine & Co.
New York
Robert R. Gilbert, Jr.
First National Bank in Dallas

Dallas

Atlanta

>

Greenville

Direct

Wire

Raleigh
to

All

Offices

&

branch

Fifth Avenue under

porary increase in the debt limit,
which returns to its
statutory fig¬
ure

a

Bank of

Boston, Boston

Rudolf

Fla.—

opened

Teegarden.

Sumner Pruyne
The First National

has

branch office at 1750 East Sunrise
ment

L.

LAUDERDALE,

Fahnestock

Pfeffer

First

F. Brian

largely to the heavy

Fahnestock Opens Branch

Corporation

York

Delmont

promises to be
least on a cash

year

balance,

basis.

budget for the

Pattberg, Jr.

The First Boston

Reserve

System.
The Federal

J.

quired in the second half.
This
will call for at least another tem¬

STOCKS AND BONDS

like

meas¬

Tax

ticipation borrowing will

BROKERS IN

fol¬

legislation permitting banks which
accept deposits to underwrite and

Pat G. Morris

New

text

"The Board of Governors
of the
Investment Bankers Association
of
America has determined to

Guaranty Trust Company of
New York, New York

Bankers Trust

now

lows:

Ralph F. Leach
.

Bricker

legislation

bond issues.

revenue

Security-First National Bank
Los Angeles, Los
Angeles

some

$33 billion
(excluding
Anticipation Certificates and
Treasury Bills) nearly half of

B.

similar

municipal

America, N. T. & S. A.

of

Sep¬

tember

of

and

before Congress which would
per¬
mit commercial banks to under¬
write certain classes of

Frederick G. Larkin, Jr.

consolidating and

maturities.

able issues to be refunded
mature

Savings

Philadelphia National
Bank, Philadelphia

an

result

Bill

and

The

problem,

years,

is

successful actions

the

of the IBA to the
so-called

Francisco

George

be

1956,

financing

Trust

resolution expressing
opposition

a

Hawes

Russell A. Kent

established.
ahead

Nov. 30, the Board of Gov¬
of the Investment Bankers
Association of America
approved

Bank, Chicago

of outstand¬

representative

II.

Harris

is

Looking
Treasury's

On

ernors

J

Co., Cincinnati

likely that only
the
reopening
process
long-term
Government

through

Manhattan Bank

The Fifth Third Union Trust

of

long-term bonds and
any such offerings might well be
made by
increasing the still com¬
ing

York

II. Lyman Greer

more

paratively small issue

Chase

harmful

and

be

Green

The

appropriate.

There will

R.

New

a

Resolution Against
'
So-called Bricker Bill

:

^

Angeles

Sheldon

43

Glover

California Bank

strong business pic¬

the

_

without

and

very
substantial in the first half of the

to

r'W.

expe¬

year has demon¬
is possible for the
Treasury to sell long-term bonds

retirement

became available.

»*"be that economic conditions have

policy
The

strated that it

ture

minimized

Treasury

this

offerings

though
banking

in price in the longer
area, and
the practice of warehousing mort¬

the

the
of

even

During the current year
the weekly
reporting banks have
reduced
their
portfolios
by $7
and

support

extending maturities.
rience

the

in

system have become progressively
tighter.! It seems clear that the
constant
investment
of
pension

policy,
dramatic change

ownership of Government

in

of

funds

degree of tight¬

this year has been that the

Under the pressures imposed
by
the demand for funds and the
strictive effec.t of official

One

plishments

non-bank

suffiqient

money

system.

either

or

postponeofferings.

certain

with

of

ness

of

group

cost

more

in

new

a

Richmond

A.

The Commercial and Financial Chronicle

44

Committee

Report of ISA Municipal Securities
Creighton Riepe, Partner of
Alex. Brown & Sons, Baltimore,
and Chairman of the
Municipal
J.

discusses

of

of

America,

at

Hollywood,
ap¬

mental relations, and

of the report and the

text

i

appendices follow:
Interim

An

Committee

its

law in the form orig¬
presented would separate
negotiable instruments from mu¬
nicipal as well as other securities.
inally

Reference will
in

made

be

this
nual

The

Report
the

for
rent

resolution

to

which

sioners

the

As

actment it would declare or

ne¬

gotiability

o

is

one

the

tant

the

Riepe

prime elements in

that

relating

the

to

from any

ported

on

Uniform

laws

of

on

time

the

newly

Commercial

were

the Editorial

and

Commissioners

the

addition

the

on

of

new

a

section;

i.e., "Section 8-105," reading:

re¬

That

Securities governed by this

(1)

proposed

Code.

other¬

Uniform State Laws recommended

free

have

of

Board

the subject.

we

involved

problems

recognized

states

our

negotiability be

to

The

of

is most impor¬

question

time

marketing

and

securities it

From

Creighton

bonds
of

valuation

such

J.

various states.
each

Article are

(Section 3-307).

William A.

importance of
recommendation
we
quote

this

negotiable instruments.

the

in

wording

proposed Code is very ex¬
in its coverage of subject
matter.
It would provide a new

in

state
laws
governing
transaction
and
in

of

body

commercial

would effect a sub¬
change. In view of the

states

many

stantial

and complexity of the pro¬

scope

posal and the fact that it covers
matters beyond the

Association

our

security field,

has

taken

not

a

position either favoring or oppos¬
ing adoption of the Code.
We wish to again go on record

attorneys,

the

York

Walter
&

Pat

Northern Trust
Chicago, 111.

The

liaison

securities

It may be

and

would,

and

committees

United

June

the

24

Municipal

Nuisance

suits

attention of

the

have

all of

engaged

us.

At the

Spring Meeting of our Board of
Governors
last
May,
Governor

concern¬

Railroad, Public Utility and

like¬

Industrial Securities

T,

•

noted that the Execu¬
the Municipal Fi¬

States

and

of the

Canada

i

State, Municipal and Public Authority

Bonds

sup¬

ported last May the position taken
our organization, the Section
Municipal Law of the Ameri¬
can Bar Association and by other

by
of

Burnham
MEMBERS

NEW

YORK

15 BROAD STREET,
CABLE:

Company

and
AND

AMERICAN

STOCK

NEW YORK 5, N. Y.

EXCHANGES

•

TELETYPE

COBURNHAM

12262

Established 1857

\

MEMBERS
Committees

Municipal

Sections of the ABA and the IBA

Dl 4-1400
NY

F. S. SMITHERS & CO.

organizations in order to avoid
any question
of negotiability of
state and municipal securities.
Liaison

from

advised

As

time

time

in

the liaison commit¬
of the municipal sections of

reports

our

tees

American Stock Exchange.

York Stock Exchange

New
I

WALL
New

RUSS BUILDING

STREET

York

San Francisco 4

5

the American Bar Association and
of

Association

our

and

interest to the two

mutual
ciations.

which

Day & Co.

ESTABLISHED

1862

if

Boston Stock Exchange

AND

liaison

only been
helpful.

constructive

of

have

not

but

very

SPRINGFIELD




HARTFORD

NEW HAVEN

PRIVATE PLACEMENTS
•

>r

serving

liaison committees

are:

>

on

currently

of

Municipal

CORPORATE FINANCING

Law

American Bar Association
L.

Eugene

William
NEW YORK

SECURITIES

the

Marx

(Chairman),

Bear, Stearns & Co., New York
City.
BOSTON

CORPORATE

MUNICIPAL AND

issuing muni¬

activities

committees

Section

DISTRIBUTORS
SECURITIES

bodies
matters

•

The

these two

OF INVESTMENT

the

cipal bodies and investors in their

Those

UNDERWRITERS

in

UNDERWRITERS AND DISTRIBUTORS

recom¬

respective

any,

Asso¬

considered to be in the

are

securities.

MEMBERS

Exchange

to

consideration

committees

best interest of the

two

New York Stock

due

their

to

action,

R. L.

After

liaison

mend

relating

securities financing of

municipal

the

"jointly study

problems

screen

H.

Hoyt,

Reed,

Hoyt,

Taylor & Washburn, New York
City.
John

Van Alstyne, Noel & Co.
Members:
Neiv York Stock

Exchange

U

,

52 WALL STREET,

American Stock Exchange

NEW YORK 5

D.

McCall, McCall, Parkhurst & Crowe, Dallas, Texas.

John

N.

Mitchell, Caldwell, Mar¬

shall, Trimble & Mitchell, New
York

City.

to
of

cipal Law of the ABA.

negotiability to; the

Officers Association

nance

the members

Underwriters and Distributors of

of

Board

these

the Code omitting to

8 of

investors in such securities.

tive

of

of

brought

that of the

and

important subjects
studied by these two

carefully

were

suggested by our Association
Section of Muni¬

that

111.

Among

and impor¬

meeting
adopted
a
resolution
calling for adoption by the sev¬
eral states of legislation against
so-called "nuisance suits," such as

F. W. Craigie

Dudley C. Smith, Secretary, Chi¬
cago,

and

in New Orleans last

consideration

of

attention

On

Co., Richmond, Va.
Morris,

Slates,

United

Forum of New York at its annual

City.

Company,

of the

that body.

Manhattan

W. Craigie,

of

measures

the

Association

(Chairman), The
Bank, New

Linen

legisla¬

Meeting

the desirability

tance
two

Bankers

respective

Annual

Canada held

Secretary,

Tempest,

wise, destroy the protection which

Public Utility

the

ciation

Chicago, 111.

S.

the

take

to

Municipal Finance Officers Asso¬

May

Chase

parties

their

to

At

Whitaker, Morgan,
Bockius, Philadelphia

F.

correspond¬

are

tures.

9, Pa.

John

logical

tions

Birmingham,

H.

William

case

collabora¬
municipal

ingly concerned. They are, in fact,

of ing which definite recommenda-

enactment

that

however,

is afforded by

Securities

tion

Detroit,

Rose, White, Bradley,

&

each

In

officials, in
with
qualified

Ala.

Lewis

af¬
the only

means

no

initiative in making recommenda¬

Arant, All & Rose,
Anthony

by

concerned.

municipal

The

such
•

Can-

<

Mich.

specify that securities governed
by
that Article are negotiable
instruments, at least insofar as
that wording is applicable to a
security issued by a government
or
governmental agency or unit,
would
be seriously injurious to
the issuance and marketability of

Underwriters, Brokers and Dealers

and Foreign

field, Paddock & Stone,

Investment

tensive

Article

Industrial* Railroad

the

of

view

In

Miller,

Nunneley,

materially

although

are

in

that municipal

bond

Mitchell,

Pershing, Shetterly &
New York City.
H,

It is recognized

proposal

dealers,

Mitchell,

Mitchell,

L.

John

overlooked.

designate

clearly

Robie

,

fected,

after signatures are
established, shall be the same as
in actions on commercial paper

en¬

such
securities, including those payable
from
a
particular fund, to be
negotiable instruments.
wise

f

state and mu¬

nicipal

upon

proof
admitted or

the

Laws

amend

Code so that

proposed

field.

advisors to

their

and

municipal

State

Uniform

on

rules

the

signatures, and to burden of

full as unfortu¬
nately it is not included in the
original "Office Draft" of the pro¬
posed Code but is set iorth in a
supplement. Accordingly, the rec¬
ommended addition may easily be

governmental agency or unit.
We also petitioned the Commis¬

the

to

est

to

or

par¬

inter-

ticular

amendment

sought

proposed Code to protect se¬
curities issued by a government

re¬

we

of

Section of

Law

the

subjects
lieve

Municipal

American Bar Association by

the

cur¬

year

Commercial Code

Uniform

An¬

our

action on a security
relating to proof of

any

"nuisance

as

working to further these
recommended
measures
in
the

Federal and state legislation.

In

(2)

were,

are

ones

proposed

meet¬

ing in May and also at its meeting
in September.

We

-

■

Report
of
this
submitted to our

Governors at

of

Board

was

,

known

are

SUits."

(7) amendments to Federal Housing loan program and
/

other pertinent

*

what

Banking, (6) intergovern¬

municipal bonds, (5) the Institute of Investment

pendices attached to it.
The

the ABA and the IBA, (3) the
on callable

the computation of yields

municipal financing, (4)

volume of

the

Fla., the Annual Report of
Committee, along with the

cooperation of the Municipal Sections of

the

year

reported,- (1) the
execution of public securities, and
(2) procedure intended to elimi¬
nate or lessen the damaging ef¬
fects resulting from the filing of

(1) the amendment to the Uniform

as:

last

made

were

previously

as

negotiability of state and municipal bonds, (2)

Commercial Code relating to

Bankers- Associa¬

Investment

tion

Convention

Annual

44th

the
the

number of topics, such

a

tions

Municipal Securities Committee,

Creighton Riepe, Chairman of the IBA

J.

Securities Committee, released to

-

Thursday, December 15,1953

..

.

(2568)

Philadelphia Office
Room 831, Western

Saving Fund Building, Broad & Chestnut Sts.

45

(2569)
Lausche

of

in

Ohio

referring to
legislation said

the recommended

members, including all main and
registered
branch
offices.
The

in part:

"I

letter

received

investment
three

about

randum

:

in

eliminate

ago

the

the

ber

nuisances

thl

*

and

challenging the issuance of bonds
by governmental bodies.

character

"That document

motion

to

came

to

me

me

recent

that

the

from

come

which

the

uncertainties

well

those

provide the
"I

can't

what

issue

bond

to

dealers

the

at

was,

our

that

the

long

sion John F.

Co.,

stant

You

.

.

with

contact

You

know

exist

in the

the

with

.

.

would

that

and

that

that
the

The

the

your experience and your
judgment
in
acquainting
public officials with what you feel

the

date;

For

callable

than

"The

our

sion

issues

amount of

municipal
-•

*

1955

will

reflecting

issues of state and

new

securities
be

not

sold

comment

the

not

also

these recommendations.

generally

to

of

of

Finance

and

Com¬

•issues

during 1954 was the larg-> merce of the University of Penn¬
our
history.
The above sylvania.
The
Institute
is
figures were compiled from the conducted
each
year
for
the
"Bond Buyer's" monthly record of benefit of
representatives of IBA
in

.: est

sales of such securities.
In

October

recognition

through effec¬

and

promotion,
market

Buyer"

"Promotion

a

will

be

year

representatives

ested

for

also

an¬

Library"

maintained

at

its

;

of the States.'

Responsibilities
Relations.

Federal

*.

their

will include
advertising and

material

which

repre¬

direct

should

be

helpful as a guide to more effec¬
tive promotion for all firms,
For information concerning the
library, advertising guides, awards
and rules, see the "Bond Buver's"
leaflet, an invitation to partici¬
pate in its advertising leadership

•

System.

program.

V

-

Urban

S.

- ;

,

by

,

; ;

Employment Security.
Highways.

;

Law

*;

No.

tained

\

345.

some

The
very

measure

con¬

objectionable

features:

"

:

Housing and Urban Renewal.
Natural Disaster Relief.
Resources

2126, known as the Housing
of 1955, was passed
Congress and is now Public

Amendments

Vul¬

and

■'

Title II of the Act amended the

.

Vocational Rehabilitation.

ized

hoans to assist local governments
providing certain essential pub¬

lic works

or

for the program from
$50,000,000 to $100,000,000 to ex¬

pand

a

which

was

Federal

loan

which
but

had

sion

Bonds.

amount

block

of

This

is

municipal

underwritten

and

investing public

the

loans

the Federal govern¬
the
program,
indi¬
possibility of the estab¬
lishment of an arbitrarily low in¬
on

ment

by

under

cated the

terest rate

such loans.

on

posal to create

poration

to

"Public

Corporation")
adopted.
>♦
The

HHFA

offered

as

a

to

securities

single issue.

talks

The

following

June

9

Secretary,

last

letter

by

was

of

third

makes
loan

under

the

program

loans

secured

facility
for
general obliga¬

by

tion bonds and 4J/4% for loans

by revenue bonds or other
types of obligations. Both of these
basic rates apply to 30-year loans
and

will

be

adjusted

facilities where such

tions
der

processing of applica¬

financial

for

assistance

public facility loan pro¬
gram, the Administration shall give

priority to applications of "smaller
municipalities" for assistance in
the

of basic public
("including works for the
storage, treatment, purification, or
distribution
of
water;
sewage,
sewage treatment, and sewer fa¬
construction

cilities; and gas distribution sys¬
tems") for which there is an ur¬
gent" and

vital

incorporated

sion'of

a

or

unincorporated

other political subdivi¬
state, which had

lation of less than

Revenue Bonds

Leased Line

Municipal Department

Bonds

Preferred

Common

qAllen

and

Unlisted Investment Stocks
*

120 Broadway

New York 5, N. Y.

Telephone REctor 2-4949
Teletype NY 1-724
Private wire




to

Philadelphia

&

Company

Established 1922

NEW YORK 4,

N. Y.

a popu¬

10,000 inhabi-

Continued

Peck

RAILROAD SECURITIES

"Smaller

need.

municipalities" is defined to mean

DEALERS IN

Guaranteed

un¬

the

at¬

and

longer

The statute specifically provides
that in the

credit is not otherwise available

State, Municipal

for

shorter amortization periods.

or

Revenue

Exchange '

se¬

cured

delivered at a joint
the first, second and

end American Slock Exchange

\

33A%

be

classes.
Engineering,
legal and underwriting phases of

&

subse¬

public

will

year

Members New York Stock

'

not

ments that it has determined that '
the interest rate on loans which it

were

session

sent

Municipal
Smith, to our

Adams
■'

(Turnpike

Bonds)

our

Dudley

on

was

announced

among these sessions
relating to municipal
financing. On April 4
the subject of Toll Road

Financing

Callable Municipal Bonds

cor¬

pro¬

quent to adoption of the amend¬

two

were

the

the

Facilities

Credit

•

A pro¬

Federal

administer

(the

gram

a new

Included

largest
bonds ever

a

and

in

of 64.

crease

Highway Commis¬

in

funds

(b)
a
the
report of the
Senate Committee on Banking and
Currency, as to the interest rate
contemplated by that committee
statement

representatives totaled-255, an in¬

made.

authorized

available

unappropriated

substantial

there
in

the $415 million issue of Illi¬

was

program

already authorized to
continue until June 30, 1956, and

r

Welfare.

(a) it increased author¬

funds

an

in

_

principal objections to the

town, of

public facility loan pro¬
which authorized Federal

'

;

_

that

Federal

■

Public Health.

The

in
de¬
constitute

realistic

what shall
"reasonable terms."

gram,

-

Conser¬

latter

IThis

works

Facilities Loan Program
v

•

and

*

'

College
Housing
Loan
Program and Federal Public

;
«

Defense

Federal

Functional

Education.

vation.

and

Grants-in-Aid.

Civil Aviation.

Natural

library will be for
study of municipal
promotion efforts by inter¬
advertising
It is also pointed out that

mail

and

r/t&ricuiiure.'

nerability.

The

firms

is

agency

termining

tendance. This year the number of

nois State Toll

on

Last

It

ing municipal sale
was

firms.

191

were

mak¬

record

new

a

member

bond

interesting refer¬

Responsibilities.

"

Banking which operates
the
sponsorship > of
our

School

"Bond

nounces

System.

Federal

held daily—April 4 to 8, in¬
clusive—by the Institute of In¬

ton

advertising

The

Financial Asoects of the Amer¬
ican

were

under

new

the

printed matter and

many

National

previously reported sessions

Association and that of the Whar¬

recalled

of

Cooperative

Institute of Investment Banking;

the

be

to

transmittal

the

are
broadening the
municipal bonds.

the

including:

Civil

in

sales

pages

The Role

"V

that

of

to

Evolution of the American Fed¬

follow

> :

riod

will

report

tive

by Public
109, approved July 10, 1953.

ences,

members

our

vestment

It

its

to

dealer banks who,

on

contains

recom¬

$4,883,659,000. This compares with
$5,603,790,322 during a like pe¬
amount

for

advertising program is

devoted

sentative

that

manner

a

year,

bonds during that period is about

1954.

submitted

be

311

first

volume

As

records for

purposes,

Intergovernmental
of

new

a

and encouragement of dealers and

agents.
the library

the

to

and

during the first 10 months of this?
year may be in order.
In round
figures the total of long term

our

to

the states and their political sub¬
divisions. The
report comprises

is

in other forms of

all

expanded

office.

\

urge

Intergovern¬

which

eral

dealers

the

year

reference and

until

coming

on

We

on

Law

(3)

as

this

announced

"Advertising Lead¬
We understand that this

That act directed the Commission
to examine the role of the na¬
tional government in relation to

yield
indicated,
such call privilege be

well

Buyer"

the

Committee

as

pro¬

reports dur¬

our

September of

"Bond

par

the

offerings."

during

available

after the first of the
some

lists

the

In

of

modera¬

at

of computing yield, it be
indicated in abbreviated offering

Volume

figures

Group
as

June 20 this year. It
will be recalled that this Commis¬
sion
was
established

method

While

the

names of vari¬
winners in this contest.

ous

premium,

a

of

ing that period, the

of the

the Commis¬
Intergovernmental Rela¬

on

Congress

mends that in any instance where
there is a variance from the above

which they purchase."

We published in

ses¬

Relations

notation in

reference

(2)

purchaser would receive

should any
exercised.

ought to be done in the field of
in

maturity;

computation

less

good

security

is

at

computed in such

render

through

country

Commission
mental

Where a bond
is callable at a fixed premium or
variable premiums, the yield is

you

law to insure the investors of

bond

a

callable

great

can

ultimate

selling

yield

be

you

the

to

Where

business.

.

overlook

not

service

the

con¬

thought to leave

one

it

you

in

are

deficiencies

law.

"If I have

should

men

public

part

program titled

President

is

.

the

Pennsylvania

tions

the law.

acquainting

of that

ership."

i.e.,

officials of certain deficiencies in

by

that

tor.

established

followed,

period of five years, be¬
ginning in 1950, the "Bond Buyer"
conducted a municipal advertis¬
ing contest which was in active

Bunn, Jr., Bioren &

Association, acted

purchaser

be

At

Philadelphia, Chairman

Eastern
our

(1)
Where a callable bond is selling at
a
discount, the yield computation

type

•

Municipal Credits."

eral

were

a

support

terms.

amendments in Title II of this Act

Advertising Leadership
For

reasonable

on

condition is protective if the Fed¬

Office,

Washington, D. C.

Bradstreet, Inc., New York, gram- of our Education Committee
subject of "Appraisal of relating to advertising securities.

the

on

principle of minimum yield to the

be

rendered by an Association of this

Copy of. the report may be had
a nominal
charge from the Su¬
perintendent of. Documents, U. S.
Government
Printing

Creighton Riepe, Chairman
committee, acted as mod¬

this

Dun &

our

standing recommendation
Municipal Securities Com¬

mittee

you

can

of

in¬

in

as

"The
of

over-emphasize to

meeting

I

several

are

at

On April 5 the second
year reg¬
istrants-were addressed
by Dr.
Frederick L. Bird,
Vice-President,

one

circulars, advertise¬
ments, etc., that the bond is call¬
able, or called if that be the
case; and

money.

tremendous service

a

is

of

importance of clearly in¬
dicating in abbreviated offering
lists, individual and general, as

lawsuits,
which frequently are filed
solely
to harass and to dela.y the devel¬
opment of an improvement out
of

of

number

there

Co., Inc., New

"The

my

and

the

securities

addition

appendices.

con-, erator.

the

and

In

the

James G. Couffer,
Vice-President,
B. J. Van
Ingen &

Municipal
Securities
Committee, instructed
to again direct attention to:

opinion, would, in
substantial degree, remove the

a

another

or

in

such

in

machinery of the leg¬
islature which might lead to the
adoption' of a law of that type,

anxieties

municipal ..bonds
optionr.l features of

crease

at

the

which, in

of

taining

into

set

num¬

munici¬

"In view of the large number of

issues

in

by

Mitchell,

York.

ties that result from lawsuits filed

time too late for

handling

covered

Partner, Mitchell, Pershing, Shetterly & Mitchell, New York; and

pals.

delay of time, and the uncertain¬

a

increase in the

an

dealers

of

,

were

mentioned

Samuel P.
Brown, Partner, Coverdale & Colpitts, New York; Robert

self-explanatory.

has been

which

degree

subject

order

eral years ago to our membership
on this subject.
Since then there

memo¬

a

law

substantial

a

the

It re¬
peats recommendations made sev¬

Toledo

n

model

a

of

one

i

weeks

of

would

from

houses

is

on

page

90

46

The Commercial and Financial Chronicle

(2570)

Thursday, December 15,1955

...

■

r,

„

•

'■

*

,♦

1

'

*

;

•

,

,

1

'

s

i

Report of IBA Federal Taxation Committee
Nov.

On

28,

the

at

44th

Con¬

Chairman Walter Maynard

vention of the Investment Bankers

of

Association

America,

Holly¬

a

wood, Fla., Walter Maynard, Part¬
ner of Shearson,
Hammill & Co.,
Federal

Taxation

The text of

as

Committee,

the

was

taxes

in

received

the prospect

!M:

I

that both

WmBk'
S

iff

M

ties

with

WBm.

par-

vie

will

each

ntupr

in

o

...

ap

4

¥lMM
-mmm

JKffm

f

of

.

of

oral taxation. This has been due

activity

flStlP5'' «Pi

among

m¥4

J*®"? '"r
terested in tax

m

those in part to the tact- that the indus-

try clearly understood that
..

,

,

.,

tee

has par-

port of
Eion

a

on

and

Income,

past

reports

Taxation

sions,

which
of

well

may

in

general

security

^akes

more

markets, and thus larger personal

incomes, income taxation has be-

like

come

more

active

important to

of

level

brought

us.

Thus,

mate goal of

coming years

obtaining elimination

of the capital gains tax, we should

income

once

the

reached

is

thaThalf

more

ditional

at

of

Ta™-

doilar.

earned, the taxwill have a strong incentive

payer

to devote a larger part of

°

while not losing sight of the ulti-

many

commis-

bas

as

about

Commis-

similar

.is ef-

red""n®^is^ burden

fban f° earning additional income,
Secondly, the public at large must
bear

the

major share of

taxpayer

ranging

from

go

may

in for,

champagne

for

a

customer to unwise charities. This
a

our

placed
mated

ceiling

a

-

NEW

at

on

YORK STOCK EXCHANGE

come)

AMERICAN STOCK EXCHANGE

50%. It

that

income

MEMBERS

Federal tax-

such

has been

a

ceiling

(not«merely
would

cost

esti-

year, or

it

with

at

per

from

all

However, it
some

income

can

taxa-

be asserted

confidence,

based

on

experience in the 'Twenties, that

Suggestion
seem

now

wise for

clusion of

provision for limiting
gains tax to a reason¬
proportion—say 3%—of the
value of the property sold.
a

the capital
able

greater
generous

To illustrate what is
for
of

rates

income

they

What

years.

tax

have

take

us

punitive

the

of duPont

stock.

Both

investment elsewhere would be

an

preferable. Let

believes

of these investors

democracy, and free¬

at

opportunity.

$220

For

SAN (RANCISSO

Averaging Fluctuating Incomes
A

ent

second

tax

modification

policies

as

ours

is that

some

are

our

provi-

of the proceeds of his sale of

be

a

deterrent to sale. Let

the

that

assume

other

profits

small,

per

widely

vary

and,

as

20% of the

a

he

high proportion of

were

to

sell, only 80% of the

reinvestment. We all know that in

is

unfairly

discrimi¬

would

be

available

VNt* VORKJ

machine that OK's ads—

CLEVELAND
.

Advertising is still a job for people—•
people of very special skills—experts in
research, media, copy, art, 'publicity,
mechanical production. But the people
at

ORLEANS!'V

as

is

AF-GL have

become

"expert"
forget that the client's cash register
the final judge of everything they do.
never

„

We—and

ing




PRIVATE

NATIONAL

COVERAGE

OP

WIRE
LISTED

AND

SYSTEM
UNLISTED

MARKETS

so

to

They work for its "OK"
any other.
-

THE

on

ptlr

more

than for

clients—have been thriv¬

that philosophy for

over

80

years.

AF-GL
Albert Frank-Guenther Law, Inc.
Advertising

Public- Financial Relations

•

131 Cedar

PHILADELPHIA

.

•

v

share,

sum

industry

PHOENIA

FOR

per

represented by
the market price of the stock. If
or

proceeds

BECKLEV

NEW

$50

all of the persons engaged in the

ALBUQUERQUE

'

then

share. His potential tax liabil¬

ity would thus be $50

(so does sales-

compensation)

consequence, a

SCOTTSDALE

HOUSTON

us

potential

seller had bought his stock at

industry individual units

from year to year
man's

sale would

the stock and might not therefore

of incomes.
In

a

$7.50. This would be equal "to

3%

ex-

sion should be made for averaging

EOS ANGEEESi

FORT W0R1H

the

be

industry

an

in the event of

pay

pres-

is

which

tremely important to
such

of

KANSAS CITY

ODESSA^.

him

capital gains tax which he would

TftPONTQl:

\

one

bought his stock

share.

per

that

us assume

"hHAWORO

PITTSBURGH X hAKR}S0URG
ISBURGH -r

it sell¬

poor to

MINNEAPOLIS

CHICAGO

holders

see

ing at $250 and both conclude that

ROMANO

0ETR0M

meant, let

two

this is somewhat too high and that

do

rich, and this should be
repugnant to every American who

dom of economic

of

case

is

really

to tax the chances of the

in

our

program to

present

in

more

rates of return than
been

Treasury

about 3% of the amount

collects

tion.

all
in-

earned

the

be

on

something less than $1 billion

MIDWEST. STOCK EXCHANGE

the

at

available

are

abundance and

complete logic

seems

ation of earned income should
NEW YORK 6, N. Y.

time

which

New

be broadened and in¬
creased in effectiveness by the in¬

In-

tax by resort to tax-exempt

come

securities,

association taking the posi-

tion that

JOSEPH McMANUS & CO.

A

It would

basically anti-social situation.

Thus, there
in

Hip

needed

was

economic

system. In the
past we have urged relief in the
form of a lowered rate, ,a short¬
ened holding period and a more
equitable treatment of losses but
our efforts have met with a great
deal of resistance, on all sorts of
grounds.

become

bracket

is

the\fiectlaf

de¬

any

ductible extravagance that a high-

39 BROAPWAY

the

.order of. 90% are intended to
Puoish the rich, hhey in fact don t

increased

somewhat

Profits

in

teachings.

reasonable to expect that

that

re-

of

,

Progressive income tax rates of

the

was

British Royal
the

S5SHKI
a£g
°
9O0/®

!

Tax

available wherever it

the oriSinal advocacy originated

~eT againsThigWy 1" W
uigumeni againsi nigmy by Marxist

inL

Gains

industry has long advocated
a
lower rate of capital gains tax
on the basic ground that a purely
voluntary, self-imposed tax at a
rate as high as 25% resulted in a
complete immobilization, o r
"locking-in," of immense amounts
of potentially venturesome equity
capital that might otherwise be

punitive taxes for which much of

Progressive Income Taxes

several

has

matters

equal annual install¬

Our

more

aspects. To begin with, it is only

prosperity

England of the

m

would

taxpayers,

bracket

also diminish.

the

tively low rate of activity in the

addition, of great interest to
of tax

extent

country's security markets. Now,

good

a

directions.

publication

the

to

however,

ticipated in this activity in

students

and

Highly

,,

s- -rsa:
many

Congress,

the incentives to additional effort
provided by such a limitation,
plus the additional venturesome
capital which it would make
available in the hands of upper-

that it is lowered, the disparity than make up this income loss
tax
reduction
In the past the securities indus- between it and the capital gains even in the first year.
in 1956 has try has tended t0 be more inter~ tax win be diminished and thereRealistically, rates of taxation
given rise to a ested in capital gains taxation fore resistance to lowering the exceeding 50% should be viewed
great deal of than in any 0ther aspect of Fed~ capita! g?iPs tax should logically for wbat tbey are—uneconomic,
program

•

in

ments.

Priorities in Reform

'

Xmtmr

probably in the coming year address ourselves to the more urgent
question of reforming the income
tax. Some action in lowering this
tax is certain in the next session

a

been

have

would

Capital

considerable effect on
opinion not only in England but
in tbis country. This document is
discussed briefly at the conclusion*
of
reP°^a

extent
over

years-

paid if the same income had been

Representatives in Congress.

Federal^ ta xhave

the
paid
four

actually

years—say

what

exceed

produced practically no

gress

changes

In

Profits and Income Taxation of the British

report on

Jn which the deliberations of Con¬

T'Sr

that

to

refunds

taxpayers

period of

Royal Commission. Urges IBA members tonsult their tax proposals with their

year

a

recent

a

logical remedy for this situa¬
is for the Treasury to give

tion

capital gains tax and the highly progressive income tax rates, and calls

attention to

this Report follows:

fifty-five

stable.

A

cf which he is Chairman.

Nineteen

those interested in tax problems, and in this

among

against in comparison with
taxpayers whose incomes

other
are

activity the Committee has taken part. Discusses priorities in tax reform, such

New York, released the Report of

the

deal of activity

great

nated

prospective tax legislation has given rise to

says

BOSTON

'

Street, New York 6, N. Y.
WASHINGTON

I

•

CHICAGO

•

SAN FRANCISCO

for

Volume

182

Number 5490

;.

.

The Commercial and Financial Chronicle

47

(2571)
actual

practice

faced

with

potential seller

a

transfer

a

Double

tax

at

Taxation

of

Corporate

Dividends

this

ruinous rate in fact doesn't sell
in other words, he is permanently

tax code

"locked-in."

;

•

.

a

If,

It will

'

credit of 4%
of dividends of
domestic -corporations.
The
tax

the other hand, the capital gains tax were limited to an

r

on

amount

than

laws

representing
not
more
3% of the value of the

say

sale

would

in
be

of

similar

20%.

property sold, the cost of making
a

be recalled that the new
embodies a provision for

Canadaprovide

for

a

credit, but the amount is

The

foregoing cases
equated, and inciden-

received

comfqrt from
preme?"Court when in

are
entirely
working of this
their law, and we

provision

of

should advocate

further increase

a

tally the government would collect

is

from

tax

a

holders

both

in-

only one.

favorite subject of attack

a

entered

However, the logic
this credit is unassailable, its

of

principle
would
be
extremely
simple. The basic maximum rate

ciple

?of

25%

would :-be

there would be

unchanged*

economics are sound

•

problems, and the yield to the
Treasury from the capital gains
tax

would

without

doubt

be

ma-

terially increased.
Tax-Free
The

principal

objec¬
industry has to the
capital gains tax is that it oper¬
tion that

ates

as

tion

our

transfer tax. This

a

would

provision

be

largely

objec¬

met

if

them

property without becoming

liable to the capital gains tax. Our
laws
for

already

tax-free

contain

provisions

be

unduly difficult to extend

these provisions to other forms of

hand,

objections of those who feel that

have

Congress
H.

as

R.

provision

for

income, they should be taxed

at

same

Other

the
as

and

ends

of

possible, such

inventorying
the

of securities

inventory.

point which

we

The

a

not

to

sector

of

raise

main

should continually

operates

and

should work for the elim-1

we

of

this

the

One of the great problems faced

by the drafters of tax laws is that
tax

avoidance

thing

from

present

(a

tax

basis of periodic

different

evasion).

place.

ing legislation to close loopholes,

that

one

its

to

growing

a

revenues

are

extremely small in relation to the
harm

event,
means

it

does

there
of

and
are

that,

other

collecting these

in

any

effective

ness

not

were

However, it
as

long

tive
tax

as

as

at

care

to

interfered

can

tax rates

are

as

see

gains

will

continue

fer

puni-

to

has

the

not

'

the

Cleveland

Detroit

j

on

or

not

a

the

Carl N.

Bond

Co., Inc.

The

;j|
\

|

.

City

Stutz

Davenport
Sullivan, Jr.

Auchincloss,

Baltimore

[

-

White-Phillips Company,

Inc.,
Mark

Alex. Brown & Sons

Parker

&

Red-

path, Washington

James E. Hogle

Frank C.

Hogle & Co.

Trubee, Jr.

Trubee, Collins & Co.

,|

'

City

Buffalo

£

Gus B. Walton

W. E. Hutton & Co.

Walton &

Cincinnati

★

;

Stern Brothers & Co.

.

Kansas

Lake

-A

^
'V

Louisville

Salt

k

{

Richard J. Stern

Benjamin H. Griswold, m

as

[

Baker, Simonds ■&>.Co.

Corpora-

Thomas Graham

J. A.

Prescott

Prescott, Shepard & Co., Inc.

Seattle

tax

P.

Ralph W. Simonds

Boston

Bankers

i

5

St. Louis

j

Foster & Marshall

The

•

Co.f

j

Little Rock

★

★★★★★ 41r

Company, Inc.

>v

★

★

re¬

sale

*

-k

actually taken

minority of the
more

ran

really

tax

a
a

4C

ALL

head-

ETS

*

on

ON

trans-

ONE

CALL

*

balance, the Radcliffe Report

Association

pitted against the taxing authori-

TAXATION
COMMITTEE

tion, New York

4C

thus supports

be

G. H. Walker &

FEDERAL

First

New York

George A. Newton

Albert O. Foster

of

capital

on

Inc.,

eroy,

The

In

tax.

On

ties, and this

revenues

are

rate

revaluations

once

is

a

Francis A. Cannon

considered

capital gains but in effect

that

present, the wits of the

avoiders

tax

as

.

Schoellkopf, Hutton & Pom-

New York

run

long into the fact that the capital

with,

be expected

Thus,

Commission

that the normal workings of busi-

particular

realization

or

communitv

James K. Miller

he
in-

sup¬

to

levied

gardless of whether

The

Administration, :in draft-

taken

tax

a

best

Shearson, Hammill & Co.

ma¬

{

Spokane

aware

Walter Maynard, Chairman

minority,

true tax

a

i.e.,

'

the

^

,

James M. Ilutton, Jr.

actually

levy of

in

>

Murphy Favre, Inc.

Edward

interesting to note that the

gains,

Memphis

sure

made fully

,

Harold M. Martin

our

:

THE

merely to

same

make

Weil,
Labouisse^
& Company, New

Union Planters National Bank

Respectfully submitted,

,

revenues

undesirable,

Commission

the

whole.

hand, asserted that

not

are

are

terest

gains

problem

The

should

of

Friedrichs

James C. Lancaster

a^Se

member

'

Orleans

nro-

°f any of our Pr°P°sals which
fuuv believes

to

taxes.

was

taxes.

other

if

It is

porting this bill.

ef

the

capital gains at the

sup¬

gains tax in its present form is

economy,

to

Each

congress

ordinary income.

inequity by

has

highly damaging

the

sible,

partnerships,

hammer home is that the capital
a

in

capital gains should be taxed, but
agreed that it would be impos¬

in¬

dustry

in

estate

exceed

our

estate

from capital gains

Per year has been Proposed

considerable

itself

capital

obtaining additional

per¬

Howard,
-

'•

long

will

^

'

John P. Labouisse

therefore, that his representatives

suggested that the
and least harmful
pos¬

solution

Omaha

economy,

opinion

if
\ £

Kirkpatrick-Pettfs Co.

re-

their

our

raaxLS

box.

Association

was

simplest
sible

limited basis. Up

of income

it

make

self-employed

on

fact taxed via

on

10%

$7>500

accomplishing

are

in

fact,

-

of

on

their

profits and

point- that lin the very long
all capital gains of individuals

Tax Avoidance

permitting tax-free exchanges

within

the
per-

benefits.

would

including

the

kaik>1;

ported the present British position
that capital gains should not be
taxed, and made the interesting

to set aside such reserves in

other income.

as

means

same

the

rates

10,

of

subject of capital gains, the
jority of the Commission

bi-partisan basis

a

and

trust funds
to

such

no

on

9

as

are

duce

and double taxation relief. On the

Jenkins-Keogh Bill which
introduced at the last session

ination

spent

<Lhe

On

reserves.

addresses

regardless

effect

which in

fhejJded by
Reports of similar

of taxation

income,

em¬

self-employed

pro-

vision would also help to meet the

gains

of

A
a

"

capital

that

is

tax-deferred basis sub¬

a

nerships,

owner-

investment property, Such

when

on

other

sons

exchanges of

occupied dwellings, and it should
not

laws

tax

stantial pension

a

buy

range'

,-P^the Tlfxaj10'n

Report

reform

ployees of corporations, including
officers, may have set aside for

The

time

posals,

hS'taXenMannshanWoCta^

cliffe

present

was

other

and its prin-

be

pro-

.

Lord Radcliffe.

One of the gross discriminations

within

reasonable

letter

.

.

Commission

Stewart R. Kirkpatrick

should

political parties will view tax reducti0n in entirely political terms
and
will
SUpp0rt
various

was

y
;
'
At the beginning of this report
reference was made to the Royal
*'

Jenkins-Keogh Bill

holders of property could sell and
a

of

purpose

it

vea^

Radcliffe Reunrt

made under which

were

the

of the tax laws.

above,

of

practical

for

conclusion

membered that in the comine
the irresponsible elements of both

embodied in the British

was

•

v

Exchanges

Conclusion
In

pigmylniiueniiai in snapmg opin10P.' P1? famous Beveridge Report,
tax laws throughout the period of - winch,laid the foundation for our
Socialist domination in that coun- present system of social security
try,
and was
endorsed
by the end our doctrine of full employRoyal
Commission
referred
to ntehtj IS a case in point. The Rad-

administrative

no

into

diminishing tax liabilities
legal if it conformed to the

by

leftwingers.

The drafting of an amendment
to the tax laws embodying this

Su-

Jlong

contested "Jack Benny" case, the
Court niled that a transaction

in this credit. The dividend credit

stead of

the
the

Canadians

satisfied with the

the

:

tion.

matter

the position of

and
of

our

our

*

-k

industry in

capital gains taxa-

*

the tax avoiders

:

-k

to

-k

4c

year

complete brokerage service

*

with much less harmful effects.

dealers, brokers and

,

iuli*

dealer banks

SYMBOL OF

w

*

4c
in

*
■

RAILROAD, PUBLIC UTILITY, INDUSTRIAL

■

'

*

AND FOREIGN BONDS

4c

MUNICIPAL, STATE AND

4c

for Brokers and Dealers in

*

Western Securities

REVENUE

SALT LAKE CITY

DENVER

LOS ANGELES

SPOKANE

V

t

«

4

4c

J. A. HOGLE & CO.

4c
LISTED AND UNLISTED

PREFERRED AND COMMON STOCKS

4c

^

t.

BONDS

■

■

■■•..v.,

*

(

★

★

4c

^

•

*

MABON & CO.

I

Estab. 1915

Private Wire Service
.v.

,

Coast to Coast
11 i

Exchange

/

'''/$■

50

Angeles

Long Beach
Reno

Sixty Years of Brokerage Service

BROADWAY, NEW YORK

NEW

Spokane

Salt Lake City

Ogden

Riverside

Idaho Falls
Pocatello

Boulder

^

,Missoula

Provo

-

AMERICAN

STOCK

EXCHANGE

STOCK

EXCHANGE

4c

Denver

San Diego
.

YORK

*
4c

''

MEMBERS

'

Beverly Hills
(




Members New York Stock

Over

4c
Los

J

*

Butte

115 Broadway, New York 6 • Telephone REctor 2-2820
Bell

4c
★

4c

System Teletype NY 1-2152

4c

★★★★★★★★

★

★

★

★

48

The Commercial and Financial Chronicle

(2572)

.

..

Thursday, December 15,1955

Report of IBA Aviation Securities Committee
Aviation

The

Com¬

Securities

William Barclay Harding, Chairman of the Aviation Securities

mittee of the Investment Bankers

whose

Association,

Chairman

the Investment Bankers Association, in a report to the

is

William Barclay Harding, Partner
of Smith, Barney & Co., of New

tion of the Association,

York, released its Annual Report
to the 44th Annual Convention of

the Association held at

Hollywood,

financing in these fields, and

Fla., from Nov. 27 to Dec. 2, 1955.
The

text

meeting in November of last
due

to

fact

that

study

factors which

in

tonoihm

mnro

the absence of

intern

™

tangible factors

more

a

on

which to

military expenditures at

current levels.

.

.

The accompanying table

^

is

the

Serv¬

ice Air Trans¬

and

„

'•

1954

V:v-

and

study

entitled
Aircraft

$697.0

8,334.5

503.5

5.7

7,711.5
5,057.3

1954

Manufactur¬

7,416.5

295.0

3.8

4,888.4

168.9

3.3

2,412.5

21.0

0.8

1953

ing Industry."

Win. B. Hardin*
This year's report contains cer¬

tain statistical data for 1953,
1955.

and

various

it

addition

In

in

trends

which

developments.

deal first with the aircraft

2,633.5
*

Estimates.

manu-

facturing industry and then with
the air transportation industry.

The

Business:

of

air-

craft

manufacturing
industry
showed slight gains in the volume
of business done in 1954 compared

with

1953. The

companies

15

largest aircraft

renorted

sales

of

$6.7

billion in 1954, a 2% increase from
the $6.6 billion reported in 1953.
In their latest interim reports for

1955,

these

showed

15

same

sales

of

companies

billion,

$4.4

8% increase from the $4.1
rpnnrfpu

p

which

agencies

,

Military

nrimo

expenditures

are,

these

and

importance
now

6.6

is

often

eenerallv when

article

is

delivered

domestic

?n ^eteral

ifl ™

(rnm

highs obtained in February.
Limitations

corn-

manufacturers,

five

Profits:

of

to

years,

one

trans-

tions

of

the

Only reported in the

importantly.
15

—

are

likely to

par-

past,

Renegotiation is the chief means
of eliminating excessive profits,
Nearly one-half of the major com-

panies have been renegotiated
through their 1951 fiscal year. An
noted that selling air- additional one-quarter have been

ticipate in the coming airline reequipment program, however. It

the finished
fixed

should be

the airlines involves renegotiated through fiscal 1952.
risks, and relatively bo far, it is believed that only 6
few manufacturers have shown a of the 15 {fj£est aircraft compawillingness to take them.
Board to haLpImld
Tbe market ?or Prlvate an<? ex"
^
ecutive-type a lr c r a f t continues ^Snrnm^
iqJS
So°d and continuing growth of tagh profit yearsof 19o3 and 1954
craft

to

enormous

sales of aircraft in this category still have to be settled by the Keis expected, barring unforeseen negotiation Board. Since there are

.

g

j-*

f-

■

i

i

y temporarily, while sales of the

expenditures^ in fiscal 195o de-

elined

dustry remain unaffected.

in-

craft

manufacturers in

icst

Financing

Public

When few years have increased some-

of

over

account

*n ,lscal 195b, These figures! are Sume their previous relationship, the tax load from generally maxi- creased very sharply in the last
m sharp contrast to the increased it should be noted, however, that mum tax rates of 70% to 52% year, although the aggregate
tales of the 15 major aircraft man- if expenditures are not increased and was largely responsible for amount of public financing has
inter- ufacturers. There are several rea- when the level of progress pay- the 59% increase in earnings of been small in relation to ^he sales

on

political

sons

for this apparent discrenancv
F
*

ments becomes stabilized, sales of the 15 largest aircraft manufac- volume of the industry.
the

aircraft

manufacturers

show

will

temporary

a

de-

Policy

(2)

The volume of commercial

sales of certain

aircraft manufac¬

has expanded considerably
during the last year.

turers

45 years

(3) Prime contractors with

,

...

,

blies to other manufacturers with
excess

capacity, in sucn instances,

both the

production

the

in

items

figures.

To

that

this

industry sales

occurs,

figures

be over-stated.

may

the

past

two

have placed

—

$1,500,000

Preferred

$70,000,000

6,497,449

6,901,145

$2,960,556

$8,497,449

$76,901,145

Stock

Common Stock

_

Total
SOURCE:

The

$2,000,000

1,460,556

Convertible Debentures

aircraft

The

Investment Dealers Digest.

manufacturing

in-

^usiry haSj jn the past, been able
jncrease its volume of business
.

.

.

.

machinery, retained earnings and bank loans,
The increase in public financing
vided

/c

rp

1,1

o\

This has been possible because of

government

financing

in Defense Department policy re¬

amounts of money
for research plus large
expenditures for development of

tories by means of large progress ondly, the large

years,

the

payments,

government

construe- needed

large orders tion of facilities, government pro-

STATE, MUNICIPAL AND REVENUE BONDS

arc

invited

to

avail themselves of

Salomon Bros.
Dealers and Underwriters

&

GOODBODY

Hutzler

Established

&

CO.

1891

Direct Wires to Our 30 Branch Offices

Exchange

STREET, NEW YORK 5, N. Y.

Philadelphia

Francisco

services.

of High-Grade Securities

Members New York Stock
STVTV WM |.

our

Dallas

115

Cleveland
,

.

West

Chicago
Palm

Beach

*

of inven- garding progress payments. Sec-

UNDERWRITERS AND DISTRIBUTORS

Financial institutions

u

greatly without raising any sig- in 1955 (See Table 3) may be atsales nificant amounts of new capital, tributable in part to the change

their

extent

duplication

airlines

Debentures

prime contractor and the
reflect
the
same

subcontractor

Over

or

(9 Months)

io.i4

1953

Bonds

heavy
production
commitments
frequently subcontract subassem-




Aircraft

ab™^ 3% from the totals the 75% figure has been reached, what faster-than sales. This is es- Manufacturers: The total of new
111 Jlsf.
? '
a xUrther 8% government expenditures and sales pecially true for 1954. The lapse public financing of aircraft man™ctl0n ™ *955 to take place 0f the industry should again as- of the excess profits tax reduced ufacturing companies has in-

Our Steadfast

San

Besides

the volume of sales in the future,

ten

next

contractors

cline.

Boston

(h„

£7®®^

largest manufacturers of aircraft—and their sub-

different

(under

,

contracts) sales are credited economic developments. The dol- a large number of imponderable
Pr°cur®n?|"t °Tf„f6d ,W1"! -which may be one year later lar volume of civil aircraft for m- factors used by the Board m its
,m„flscal l991 and 4% in fiscal than the date of the progress pay- dividuals and corporations has determinations the re^.ta
reJ.953- S°™e industry leaders be- ment. The new policy of the De- been ™nmng about 75% ahead of ne£°.rntion proceedings are lmllavethat expenditures for guided fenSe Department to attempt to last >'ear- While the sales volume PO®ible to predict,
missiles may reach 50% of miltary reduce progress payments from measured in the number of planes
m addition to renegotiation,
spending for airpower within ten 90% 0f costs to 75% of costs on so!,d
Quite large, the dollar there are var ous Congressional
years- ,®uch. a development would new contracts has recently had the value's ratb?r small with the re- investtig:atioi«s m p:rocess the obnaturally change the complexion effect of showing declines in govthat this business accounts J^ives of which are at least
of'he industry
ernment expenditures. However, for only about 1% of industry PartlyC?"C th"
rafti°
The table portrays actual spend- this merely allows government ex- sales.
p o ts
e
a
ry.
f
.
Again, results of these investigaLations It indfeate? that mnftarv Penditura? for aircraft to dip
Earnings: Earnings in the last tions cannot be *°™seen.
i

probably

for

f,

sales of commercial

change

may

from the crediting of sales by the
aircraft manufacturers. To illustrate

backlogs of the

aircraft

the

four

between the increased sales of the

partially expenditures

of guided
account for

n

expenditures

of course, dependent

national

be

ifFebru^ry "it
11

dustry.

.

in

re-

'

about 9% of military expenditures price

of the sales of the

ontitraotni'c

.

Variations

an

billion

can

missiles. Missiles

(See Table 1).

for nearly 90%

569.0

Department.

attributableto the aircraft indus^ The table clearly shows the

sponding

®

period of 1954.

Defense

of Total

8.8%

search and development expendi- aircraft manufacturers and the detures for airpower or various ex- creased expenditures by the Dependitures made by the Atomic fense Department.
«
Energy Commission and other
a) The timing of government

increasing

Aircraft Manufacturing Industry
Volume

SOURCE:

This table does not include

of

financing and
discusses other
may affect future
The
report
will

business, profits
stock prices
and
factors

1952

As A %

notes

volume

the

•w-i.

1951

1954

Guided Missiles

Missiles

$7,260.0
8,038.0

8,838.0

1955

"The

Guided
Aircrart

$7,957.0
8,607.0

Guided Missiles

r

,

of the most important quespertaining to the aircraft
ports should continue to increase, manufacturing industry as a whole
with the result that the ratio of is whether the industry will be
commercial sales to military sales able to retain the earnings it has
Over

dollar

and

Year

1956*

a

in the

mercial

well

as

wbelmjn£ly bettered ^ perform-

be expected to continue for

crease

(in millions)

Fiscal

dis-

we

tributed

Procurement of

Total Aircraft

December,

about

(See Table
Beginning in 1953, however,
the aircrafts consistently and over-

aircraft have caused a marked in-

„

Department Spending for

Aircraft and Guided Missiles
•

Services"
in

^

Defense

Metropolitan
Helicopter

did

]atest

_

portation

Aircraft

of

the general market.

and deliveries of such aircraft
may

(See Table 1).

Movements

2)

about for aircraft of the type now in use

or

_

5% increase in pretax

manufacturers

is done by the railroads.

as

a

Manufacturing Stocks: In 1951 and
1952
the
stocks
of
the aircraft

public release of miiitary at least two years. Within the last
base estimates, most informed obspending for the procurement' of three months, initial airline orservers
project a continuation of aircraft and missiles:
ders for turboprop and turbojet

entitled

"Local

extremely diffi-

are

cult to predict. In

we

published

equipment trust certificates

1955,

corresponding period of 1954—
result of an 8%
increase in

Price

consistent rise in air transportation stocks dur¬

a

in

far

So

profit margins.

Reveals increased public

year

the

June, 1954

the

sales and

as

issue

presented at the

was

the

44th Annual Conven¬

both the Aircraft Manufac¬

on

1954.

earnings have increased 11% from

ing 1955. Proposes Congress amend bankruptcy laws to enable airlines to

of the Report follows:

No report

furnishes recent data

turing and the Aviation Transportation Industries.

in

turers

Committee of

Broadway, New York 6

One North LaSalle Street,

Chicago 2

Volume 182

Number 5490

(2573)

The Commercial and Financial Chronicle

...

portation industry in 1953 was
$4.9 million, in 1954 $.3 million
and in the first nine months of
1955 $5.8 million. Except for an
issue by a company set up to

The helicopter services
which have been established in
crease
in
cash
requirements of place with each succeeding gen- three metropolitan centers in the
some manufacturers. Despite these
eration; and (3) Increased speed U. S. have attracted a great deal
new

of

types

commercial

trans¬

in the U. S. have ever flown,

market.

tions, and also if the industry
should over-estimate its growth
potentialities and purchase more
equipment than is actually needed.
of interest. But the helicopter is At the present time, however, the

and

ports have contributed to the in¬

flying is becoming more common-

two

stimulates travel.

factors, only two of the 15
largest manufacturers engaged in
public financing in the first nine
months of 1955.

companies

(Two other major

financed

have

the

in

last quarter.) The remaining com¬

panies have chosen to meet their

requirements in other

borrowing
ings.
as

such

ways,

retaining

or

earn¬

tapped
haul

still an expensive vehicle to operate.and expansion of the metropolitan services has been limited
by the need for subsidy. While the
efficiency of the helicopter is improving with development, many
observers feel that a radically different type of vehicle will be
needed to provide short haul air
transportation at reasonable cost,

Two

New Areas for Expansion:

large markets

yet largely un-

as

the air cargo and short
markets. So far,
been no cargo aircraft

are

passenger

there have

capable of

competing

the

on

price

a

in

the surface carriers

basis with

The air
cargo now being carried consists
In 1953 the method of financing largely of items of high unit cost
was
divided about
equally be¬ and small size, items for which
tween convertible debentures and transportation costs are relatively
common
stock.
In 1954 common unimportant, or items for which
stock accounted for about three- fast
transportation
is
essential.
quarters of the total (due largely While air cargo transportation is
to a common stock offering by one expected to show steady growth,
manufacturer). Through Sept. 30, it will be many years before the
1955 over 50% of the new capital
development of large cargo planes
raised by the aircraft manufactur¬ will enable the air transportation
ing industry was through the sale industry to develop fully this
carriage

of

cargo.

huge and still relatively untapped
market.

of convertible debentures.

In the past, civil developments
of aircraft have largely followed
military developments because
only *Jje military services can affol*d the tremendous costs of developing new aircraft. There is an
active military interest in vertical
rising and steep gradient aircraft
and this is expected to lead to
some interesting commercial developments in this category durlng the next 10 years.

Air Transportation Industry

Volume of Business: During the

last three years

the airline indus¬

try has continued the growth evi¬
dent
since its
inception in the
The

1920's.

U.

S.

billion,

airlines

all

$1.4

was

increase

11%

an

of

volume

1954

scheduled

from

1953's volume of $1.3 billion. Since

1946,

the total revenues of U. S.
airlines have increased

scheduled

204%. In
U. S.

the airlines of the

1954

Earnings

The short haul air travel market

surpassed in passenger miles

is also

in the Airline Indus-

try: From ,1950 through 1954, airually. The time requirements of line net earnings did not increase
traveling to and from the airport as rapidly as revenues. Reported
greatly
reduce
and
sometimes net operating income of the "Big
eliminate the advantages gained Four" carriers fell from more than
from fast service from airport to
16% of revenues in 1951 to less
airport. It will, therefore, require than
11%
in 1954. This
was
expected to develop grad-

aircraft

that

rmmipnilv

rise

eco-

Vprtipailv

vertically

short

very

develop

to

Hcp

aiso

ana

(or operate from
ways)

operate

can

anH

nomicany

larSely due to the increased burden of depreciation charges, inasmuch
•

run-

the short haul

*

as

the

cash earnings

of the

*

industry have just about matched

Revenues, Expenses and Earnings of the "Big Four"

largest car¬
traffic
airlines. Trans¬

Net

atlantic

is

travel

air

now

about

Opr.

As % of

As % of
Revs.

Income

Revs.

riers of intercity passenger
in 1954, four were

Net Opr. Inc.

wove

Plus Deprec.

Deprec.

Revs

As % of
Revs.

(S figures in millions)

1954

$789.1

$84.2

10.7%

11.5%

$91.2

Index

Sched. Airlines

10.5

77.5

10.8

152.2

21.3

81.0

12.9

58.5

9.3

139.5

22.2

534.0

87.0

16.3

42.0

7.9

129.0

24.2

1950

Revenues of U.S.

74.7

625.6

418.4

56.7

13.6

40.2

9.6

96.9

23.2

1953

—

SOURCE:

(!;/■*«—uOO)

Year

•

Annual Reports.
Ti

A

to

1,132

304
274
244

1951

990

213

shows

1950

818

176

1949

780

164

The foregoing table
1954, depreciation
for the "Big Four" airlines was
10% larger than net operating in-

1948

634

147

come.

1947

574

124

1946

464

100

1954

$1,412

1953

1,272

1952

SOURCE:
In
nues

the

responding

This
to

nine

months

about

period

of

1955,

of

from

15%

the

reve¬

cor¬

1954.

expected

growth trend is
aircraft

faster

such

Lockheed turboprop and

as
the
the Boe¬

that

in

Route Cases: It

.

is

,

_

.

.

clear that the

air transportation route system of
the United States has been undergoing a major readjustment which
will affect the fortunes of many

the smaller

carriers. In general,

Certification

•
...
airline equipment purchases

of

Local

Service

trunk lines and regional carriers
appear to be benefiting by the re-

operating authority. Prior to that
time, local service airlines without

^

under

operated

efficient, the airlines
tended
to
lengthen
the

more

the depreciation
do not charge off depreon
the same basis, and

enmg

Period. All carriers, with theredI by^ the large
that being acqu time of acquisi-

airlines

portation
,

..

companies:
,

.

.

.

Table
amoun+

4 capital. However, investment
0f

snows tnat tne total amount oi

charges
also
may live factor,
York to London in 6 hours and
in individual cases
Although some important route
New York to Los Angeles in 4V2
depending on whether an airline cases are still pending, it seems
hours.
is at the beginning or at the end likely that the present route reAirlines now carry about 80% of a re-equipment program. These adjustment period may soon be
of the passengers of all common variations not only make compari- over. With the evident determinacarriers in trips of 500 miles or sons of airline earnings somewhat tion of the CAB, under the chairmore. Such a large
percentage of complicated but also make fore- manship of Ross Rizley, to clean
up the long-standing backlog of
the business at first suggests satu¬ casting difficult.
Price Movements of Air Trans- rou^ cas^s' ^ *s anticipated that
ration of the long haul market.
However,
air
transportation is portation Stocks: For the three ™s} °*• "?e remaining cases will
likely to continue to grpw faster years up to June of 1954 airline
decided within the next six to
'.
nine months.
than the rate of population growth stocks did not
perform as well as

bankers cannot compete with in-

public financing in the air trans-

The

and

Douglas

latter

will

transports.

jet

travel from New

ciation

depreciation
vary
widely

.

carriers to¬
gether carry only about 12% of
inter-city transportation, and air
transportation with its speed ad¬
vantages may be able to attract
since: (1) All common

increasing

amounts

of

passenger

going by
automobile; (2) It is estimated
that less than 10% of the people

traffic

of

a

type

to 4% and stand-by fees,

YJ " Pr e s e n t, approximating
k 0± 1 '°-

The total needs of the carriers
tern- for capital to finance equipment
p0rary
certificates of three to purchases in the next 5 to 10 years
seven years duration. As a result
have been variously estimated at
grass roots support of these from $1 to $3 billion. Some of it
iocai
service
airlines, Congress will come, as in the past, from
passec[ a new iaw making perma- depreciation and retained earnnen^ ajj terminal stops of pres- ings. How much will be supplied
ently authorized airlines, along by short-term borrowings or by

exception

tion being an important competi-

ing

,

.

1

in

industrial
the

second

the

ever,

companies
in

level

average.

half

stocks
rose

June

on

page

„

Some observers have been

the

Continued

of

of

very

1955

Beginning
1954, how-

tions

the

tense

airline

sharply to
about

a

double

con-

Underwriters and Distributors

cerned that the new route allocamay

introduce

competition

certificated
affect

the

an era

of in-

between

carriers

economic

which
status

of

the

Investment Securities

will

of the

now




the

level

Table

in

June

1954.

2)

(See

industry. This

could

be the

case

under unfavorable business condi-

Hallgarten & Co.
Established 1850

Carl M. Loeb,
42

New York

Chicago

with

interest rates on money taken
down ranging generally f r o m

half
of
the
intermediate loans negotiated with insurance
allocation of routes at the expense p0jnts now in use. This new law companies is a matter of conhave
of the larger carriers. The ability
undoubtedly make the financ- jecture.
period over which an airplane is of the smaller carriers to take full jng j^y these carriers easier, since
Undoubtedly
the
investment
depreciated. With the advent of advantage of the new routes will the permanency of the carriers-' banking industry will be called
the jet transport costing around depend in large measure on their operating authority is no longer on to raise capital by public offer$6 million, serious consideration abili* to finance the acquisition jn question.
ings of securities for those carriers
is
being given to further length- of ftight equipment
Public Financing of Air Trans- that
are deficient in permanent
aircraft have become larger

As

and

continue with the introduction

of

airline

special note.

Facts & Figures.

Air Transport

first

increased

importance of depreciation
earnings is worthy of

The

larger and

Carriers: In May, 1955, the President signed into law a bill giving
local service airlines permanent

713.0

1951_

by steamship.

as

0

ten years.

22.2%

$175.4

1952

equal to the passenger movement

ground the insurance companies
have recently shown a willingness
more
efficient transports are in- to enter into contracts of up to
troduced during the next five to 40 years duration to finance major
The trend toward lower fares is

the increase in revenues.

expected to continue

six

the

Of

muting.

,

airlines are primarily concerned .'finance the purchase of aircraft
with trying to provide enough to be used by an airline, the
capacity to meet the growing de- financing during this three year
mand for air transportation.
~ period has been almost 100% with
Rates: Non-luxury coach serv- -common stock. There has been
ice> at reduced rates, was origi- :very little financing in this indusnally introduced seven years ago fry relative to what would be exby one of the regional carriers, pected of an industry with its
gut it has been adopted' by the growth characteristics. This is due
larger carriers and expanded dur- t° the fact that the airlines have
jng j^is past summer. Coach serv- generally been able to meet their
ice n0w accounts for about one- capital needs from retained earnthird 0f the passenger traffic for ings
and depreciation supplethe domestic trunk lines and in- mented by bank borrowings. The
ternational carriers. Undoubtedly airlines are now faced with a very
the expansion of coach service by definite problem, however, in that
the major carriers has been in- the new transports which are betended, in part, to meet the com- ing ordered in quantity are so expetition
of
the
non-scheduled, pensive that many companies are
non-certificated carriers, as well unable to finapce their purchase
as that which might be expected
in the usual manner. Additional
from the smaiier or regional car- resources are required.
riers on new routes allocated to
The large insurance companies
them by the CAB. However, traf- have recently been actively inlie growth has been greatly stimu- terested in seeking to supply the
lated by what, in effect, is a 25% capital requirements of the large
reduction from first-class fares, air carriers. It has been 17 years
and it is understood that, through since the passage of the Civil
a combination of high load factors
Aeronautics Act, and since its pasand high-density seating, profit sage no certificated air carrier has
margins on coach flights have been defaulted on its obligations. It has
maintained at levels roughly com- been demonstrated that transport
parable to
those on first-class aircraft are generally good secuflights,
ghts.
rity for loans. Against this back-

all the railroad coach travel in the

country, except for big-city com¬

49

Loudon

WALL STREET

Rhoades & Ca
NEW YORK

5, N. Y.

102

50

The Commercial and Financial Chronicle

(2574)

.

.

.

Thursday, December 15,1955

Report of IB A Canadian Committee
of the

The Canadian Committee

"

■

Committee

Executive
dent

a

Convention

Hollywood,

that time is shown in the follow¬

Fla.,

in

Priv.

economic

relative

reviewed the

Committee

since the end

of the War.

at

thq

Canada's
over

progress
the
r

postwar

period seems
to
give a
broader p i cof

ture

of

has

what

happened in
the

54

12

last

months.

It

is

impressive characterCanadian

the

of

economy

high rate of capital invest¬
resulting
in
widespread

very

development

of

our

natural

re¬

large industrial expansion
and a broad housing development.
OuE Gross National Product in

sources,

from

has

1946

1955.

in

than

more

doubled,

approximately $12 billion in
to an estimated $26>A billion

ac¬

resume

a

u?

dollars

complishment
thaa

Up 33

(after

during this period have been the

of

details.

picture rather than the

Up 101

The most
istics

ment
a

Up 70

1

outline

broad

Income_______

value

the

In

of

than

more

million

in

period

same

mineral

our

from

trebled,
1946

to

$502

estimated

an

$1,650 million in 1955.

The num¬

manufacturing

establish¬

proposed

ber

therefore to

ments in the

highlight in
this
report a

J. H. Ratcliffe

by one-third while the gross value

a

more

of

few

the

important developments in

Canada

The

United

since

the

relative

war

the

of

,s
has

products

more

doubled.

than

Since

Canada during

time increased

same

manufactured

of

ended.

growth

States and

of

the

production

1946

Canada's population

increased

lions,

or

by

over

3%

mil-

about 27%, to 15,600,000.

increase

selective

and

■

i

•

•

solved the problem by making a

,

portion of the equity capital of

a

been

has

m^Sht well adopt

employed.
The
number of persons with jobs has

virtually

fully

increased

b,y approximately 21%.

During the same
has increased her long term investments abroad by over $1.5

Oil

was

discovered

Alberta

in

over

Canada has always welcomed
$2 billion have gone into oil deinvestors from abroad. Govern- ^ """""
in
Western
Canada.
ment policies are designed to aid vewpment
and protect them and allow the Diming th:is per)lod °V^5,0(W profree repatriation of principal, inPiW
terest and dividends. There is a
041 reserves have increased
taken place feeling in some quarters, now be- from about 72 million barrels to
government coming rather vocal, that foreign an estimated 3 billion dollars and

tion is estimated to have increased

substantial gain
in output per person and a "real"
improvement in the standards of
living have resulted.
Ooviously tnese tremendous adby 42%

that

so

a

could not have

vances

without

enlightened

corporations t h a t est a blis h
wholly - owned subsidiaries 111
Canada should as a matter of,

policies designed to facilitate and
to assist this broad economic expansion.
taxation

Canada's

good public relations, make avail-

is

program

expenditures for national defense
and for welfare, to provide incentives to attract capital investment
for
the
development of natural
the

and

resources

expansion

'approximately

of

tions

manufacturing capacity.
Canada
has
no
capital

cf

of

tor to

It is almost
Canadian mves-;

(mainly U. S.).

impossible for

gains
tax. There are generous provisions
for the recovery of capital costs,
particularly in the development
0f mineral, oil and natural gas

wholly-owned
foreign corpora-

hands

the

a

■

-

-

oarticinate directly in such

for

tax

income

the

first

three years of operation plus a six
months' tuning-up period
Invesafforded

are

incidence

relief from

some

of

taxation

double

received

from

700,000

barrels

Edmonton, Alberta, to Sar.

_

the 20% dividend credit referred
to earlier in this report, which

-

-

Cana-

dian companies. Some prominent
income United States' companies, such as

pay

ment of crude oil reserves in
Western Canada has been the dis-

applies

only

stocks

to

of

Continued

Standard Oil of New Jersey, Ford

on page

60

from the rate in effect last

and

which

one

vorably

the

to

Despite
tures

these
the

and

United
52%.

favorab-e

fea¬

increase

great

government
the

period

in
during

expenditures

postwar

fa-

compares

current

States corporation tax rate of

Since 1878

over

Natural Gas
Associated with the develop-

tax at the rate of 47%, a reduction

year

be

To transport western crude
market two major pipelines

from

eomflLCOcrPeTutlOICaanaadiLnn
of 2%

will

w„°^lci nave been t0 lls.t tn.e st°CKS
j
Ontario and the Trans Mountbe Parent companies in Can>
»
£ida ond let the Canadian investor tain pipeline, 740 miles in length
participate in this manner. This is from Edmonton to Vancouver and
.n°t so effective today because of gea^je on ^he pacific coast,

tax-paying

corporations currently

it

Canadian industries as rubber, oil to
electrical equipment, automobiles, have been built, the Interprovinmremrnvm
chemicals, electronics and others. "PY"e P'°u'naJ",P"nPi°ni?h

corporate profits by an allowance
of 20% of the dividend income

!iner^
has ^en increased
from 246,000 barrels per day in
]
P,
barrels in 1954, and
mid-19o6, when present ref nery expansion plans are completed
daily.

properties. New mines are exempt
from

J-araaas oil requirements nave

«-about.65% of requirements
n®.

tries in Canada are almost entirely
in

Though

day

per

i^nw amount"
pestic production is now account-

portion of the equity
Primarily
this feeling stems from the fact
that certain manufacturing Indus-

to Canadian investors.

subsidiaries

barrels

Sa'rXuirS#t £

aD.e some

designed to obtain lha large sums
required
for
heavily
increased

of

Brokers and Dealers

capi;a

Since 1947 when the Leduc field

The volume of physical produc- billion.

the

Servicing

similar policy,

a

investment
of the postwar period has
vlrtually transformed Canada s
ec°nomy Some of the more lmperiod Canada P°rtant; developments are:
jv"e

panies in Canada, and the remainder mainly from the United
Kingdom and continental Europe.

During this peforce

anSS. Oth£

^

vestments
and
the "reinvested
earnings of U. S. controlled com-

im-

enlightened

labor

the

to

partly to

and

migration policy.

tors

\

o

c

due^'partfy

is

increase

The

riod

taxes)

Sometimes it is more impressive
look

Up 243

*

Corporate Profits

;' The text of the Report follows:
to

Up 18
Up 74

Capital

Personal

Canada

of

progress

—

Investm't

ixa.lonai

UiOjj

27

Up

Population

the

which

cara'Ja %

u. s. %

i t

r

.

high rate of capital investment.

natural

ing comparisons:

Annual

.i

,i

Texas Company, Sears, Roebuck
and Goodyear have successfully

i

end of the'War has

Since

than that or U» 5. »^ays most impressive character-

pace

istic has been the

&

Association at

of the

"

growth

economic

i oi *17-

-

.

.

.

relative

s

'

i

•

rapid

a more

-

Ltd., of Toronto, sub¬

report to the 44th

,

}.

been at

Presi¬

and

McLeod, Young, Weir

of

Company,
mitted

of

Chairman

Ratcliffe,

H.

J.

Motcr Company, Du Pont, The

Annual Convention of the 1BA, Chairman J. Herry

.

.

Ratcliffe, finds Canada

is

Chairman

whose

America,

In report to the 44th

Association

Bankers

Investment

Canada's

net

debt position has been reduced by

13% since 1947

over

budget surpluses

Asiel & Co.
Members

Members

New

York

American

Stock

Telephone HAnover 2-5000

of

the

nine
years.
The
current
budget included some taxation re¬
lief to corporations and individ¬

Exchange

uals and forecast

million

it

Teletype NY 1-1110 & NY 1-1111

activitv.

brought

was

been-

deficit of S16'J

a

for the fiscal

New York 5, N. Y.

11 Wall Street

result of

a

eight

past

Exchange

Stock

as

in

Since

year.

down

Nationwide Facilities for

there

the Distribution of

has

sharo increaseun economic

a

The

result

prospects

are

that

Investment Securities

of higher tax

receipts
than originally forecast the antic¬

as

:\

a

deficit

ipated

be

mav

consider¬
With 62 offices from

Canada's
fiscal
policies have been such as to
create
confidence
in
investors,
domestic and foreign.
ably

m

lessened.

400
an

coast to coast,

and

more

than

representatives, Francis I. duPont & Co. offers

effective, nationwide, organization for the distri¬

bution of both corporate

and municipal securities.

Capital Investment
-

The

the

postwar years have seen
highest and most sustained

Francis I. du Pont & Co.
Members New

rate of private and

INDUSTRIAL, PUBLIC UTILITY, RAILROAD

!

public invest¬
in capital assets in the his¬

ment

country.
have been spending

and MUNICIPAL SECURITIES

National

Wm

Product

of the

the

Gross

INVESTMENT DEALERS
BROKERS

IN

•

UNDERWRITERS

,•

DISTRIBUTORS

SECURITIES AND COMMODITIES

If

throughout the postwar period in

capital assets of which 17.6%
has been spent by private sources

new

figure

compares

United States.

This latter
with 14.6% in the

From

1945

to

1954

capital exoenditures amounted

billion.

$5,954 million will

Laurence M. Marks & Co.
Members New

York Stock

Exchange

Exchange (Associate)

Street, New York 5, New York

An

estimated

be added this

year.

widely held view that
Canada's postwar expansion has
been financed largely by foreign
Despite

investors

49 Wall

to

One Wall Street, New York 5,

Teletype NY 1-1181

Telephone Dlgby 4-2000
Chicago, III.

Fresno, Cal.

Wilmington, Del.
•

»

N. Y

e

Philadelphia, Pa

Galesburg, III

Quincy, III.

Kankakee, III.

Rochester, n. Y.

a

85%

been Canadian

cf

this

outlay has

capital.- The major

Akron, Ohio

Kansas City, Mo-

Sacramento, Cal

Bakersfield. Cal.

Kewanee, III.

St.

Beverly Hills, Cal.

Los

Cedar Rapids, Iowa

$36

nearly

American Stock

Main office

other than government.

'til.

Memphis, Tenn,

San Francisco,

Charlotte, N. C.

Miami, Fia.

Sikeston, Mo.

Cleveland, Ohio

Miami Beach, Fla.

Sioux City, Iowa

Dallas. Texas

Mi'waukee. Wis.

Springfield, III,

Angeles, Cal.

Joseph, Mo-

St. Louis, Mo.

Cal.

Storm Lake, Iowa

Danville, III.

Minneapolis, Minn.

Decatur, III.

Newark, N. J.

Streator, III.

Elmira, N. Y.

New Orleans, La.

Terre Haute, Ind.

Enid, Okla.

Oklahoma City, Okla.

Washington, D. C.

Fort Dodge, Iowa

Telephone HAnover 2-9500




portion

Teletype N. Y. 1-344

of

the

$6,250

million

of

money

which financed the

balance of this

large capital outlay

foreign

came

from

new

United States' in-

m

H

1

Principal Security & Commodity Exchanges

Canadians
over 21% of

tory

York Stock Exchange

Omaha, Neb.

West Palm Beach, Fla.

Fort Lauderdale, Fla.

Pasadena, Cal,

White

Fort Worth. Texas

Peoria, III.

Wichita, Kansas

Plains, N. Y

p.
W:

■

Volume

,182

Number 5490

.

.

.

51

(2575)

The Commercial and Financial Chronicle

Report of IBA Public Utilities Securities Committee
The

1955

Utilities
the

of the Public

Report

Securities

Committee

Associa¬

Bankers

Investment

tion of America

was

Annual

the

44th

the

held

at

re¬

sale of

lative

Holly¬

has been

wood, Fla., by Harold H. Young,
partner of Eastman, Dillon & Co.,
New York City, as Chairman of

substantial

no

rities of utilities in

drop in refunding activities. Finds all classes of

demand, particularly

secu¬

ket

The

by enthusiasm

as

money

compa¬

a

ing activities.
>

nies have been

-

The

New

related almost

entirely
the

ups

downs

of

out

to
and
the

ity

of

least

bonds repre¬
worries of

the

utility companies and there is
no let-up in sight for the demand
for good public utility mortgage
bonds.
This is partly because of
pattern of savings. Indi¬
buying large amounts
Retirement in¬

are

life insurance.

plans

are

corporations
funds

sion

are

and

trustees

funds

the
for

have

setting up pen¬
employees.

insurance
banks

compa¬

which act as

and pension

savings
big

Many

popular.
their

for

Consequently,
nies

Oct.

ble
Harold H. Young

the

come

A
as

they reported
3.11% for triple A, 3.16% for douof

Sales of mortgage

of

was 2.95% and for
3.08%.
One year later,

bonds

bonds

alone.

viduals

excellent summary of util-

financing, noted that as of
1954 the average yield to
maturity of triple A utility bonds
was 2.87%; that of double A util-

primarily to
any influences
especially in¬
volving util¬
ity companies

today's

an

in
puts

monthly

which

York,

Oct. 29,

market and not

the

-

Company

Trust

Irving

ity

general money

sent

will

we

been

for the

utility

of

sums

money

31,

1955,

3.28%

and

A

month.

amounts of

They

buy

for

ferred stocks

bonds,

A

ular in this

stocks

the double A and 3.42% for the A

eased

We

are

the

from

somewhat

points attained

to

high
that

note

maximum

make

use

possibility of

mar¬

In

fact,

much

has been

in

done

,

.

,

£

authorities,

many

,,

dis¬

However, one

in

For

example, it is
that New
York
life
insurance
companies,
New York savings banks and sav¬
ings banks in several other states
recent

years

the news of the President's illness,
As compared with the situation
in immediately preceding years,
yields this year reached new low could, under state laws, buy com¬
levels and price-earnings ratios, mon stocks. In' some cases there
new highs. This has given rise to may have been no change in legisthe question as to whether these lation but there haVe been changes
stocks have been getting too^ high in investment policy which have
and

to

but

tributed

the

to

buyers.

Pension

stantial

blocks

atti¬

1946

and

in

of

factors

have

which
are

we

support

in

a

period

a

been

viduals,

yield lower returns than those to

seems

few

a

the
buying of these stocks has been
ago.

years

of

an

In the first place,

investment

People

nature.

as

created

among

well. When

indi-

investor

an

in his own area as that
to be the type

which

accustomed

were

we

pro¬

makes an initial purchase, it is
often the stock of a utility com-

when utility common stocks will pany
which

educational

of
the 'investment
com¬
munity, new commdn stock buyer3

much

situation

stock

gram

a

number

a

take sub¬
off,'the

funds
of

the

Through

stocks

on

that

the

belief

are

market

the

utility

subsequently
sold
higher yield basis.
There

new

as

market.

questioning

in

around

turned

stock market

common

fact has con¬

very

because

tude

the

into

certain- institutions

brought

Yields
instances in

many

that

should

they
bought.

be

in

lower

were

1946

whether

to

as

continue

is

most

of enterprise

familiar

and

most

appealing.
•
•
The
question
of
how much
lower
yields can go than they
.

this year depends, in
considerable measure, on the
Continued on page 58

seeking speculative profits in the have gone^

change in the gen-

a

Many institutional buyers stress
the point that
a

cline

equi-

they may purchase

bond at the wrong phase of the

money

companies have

built up their common stock

to

favored.

only

cline in market value.

to strengthen and im-

.,

as

have

eral level of interest rates which
will give rise to substantial de-

financing because of its low cost,
recent years

low

price

in

drop

problem as to preferred stocks in generally good market of recent
the portfolios of institutions is the years have not been likely to turn

bond

of

institutional.

more

utility companies show no tendency to succumb to a temptation
to

so

courage

in the summer.

interested

became

further interest on the
part of most private investors.
Therefore, the demand has become

In other words, rates have

bonds.

bonds and, of course,

connection.

the private in-

was

monthly report at the end

p];.°ye capital structures of the
large utihty companies. Quite mdependent of pressure from regulatory

public utility bonds are very pop¬

weak

common

attending

receded

the

before

even

vestor who was attracted by high
of August, 1955, showed modestly yields. Thirty years ago the going
higher rates than prevailed in the rate on preferreds was about 7%.
October figures which were cited. In more recent years this rate has
As of Aug. 31, the averages were declined greatly and after a while
3.14% for the triple A; 3.26% for the average return on preferred

Their

coming into their hands to invest
every

these

decline

not

a

institutions, which have
previously been buyers of
stocks, have come into
the market and utility stocks have
often been among the issues they

had

which

high levels
the so-called

over

areas"

"growth

less than the bond financing. However, it is interesting to note that,
again referring to the Irving Trust
reports, the | rise in cost of preferred money has not been as
much as that of bond money. As
of the end of October, 1954, the
Irving Trust found Group 1 preferreds yielding 3.85%; Group 2,
4.00% and Group 3, 4.18%. The
corresponding yields as of Oct. 31,
1955, were 3.96% for Group 1 preferreds, 4.06% for Group 2 preferreds and 4.24% for Group 3.
Historically, the buyer of pre-

sales prospects although,
note later, there has
substantial drop in refund-

dampen

of

cost

stocks

Some

been carried to rather

a

incident.

the

tember.

firming of rates in the last year, able levels.
However, the difference in rates
Preferred stock financing conhas not been serious enough to tinues to be in amounts very much

financial

Fluctuations
in

in

not

ties-while debt ratios have been
time to time and there has been 'either reduced or held at reasonRates of interest fluctuate from

utility companies have been sup¬
plied without undue strain or spe¬
cial

would

that

volatile issues.

more

as

utility

belief

fast

as

or

specu¬

or

Many

the Report follows:

just passed is one in
requirements of

year

which

the

other

purchase

to

stocks

far

as

■

The text of

As

many

in

utility

stocks. Gives data regarding

common

as

industrial
issues

stocks

past years of utilities financing.

the Committee..

-

in

trend

special incident, and there

or

the media for
a matter of
a noticeable
instances to the

utility stocks
operations.

their

fact, there has been

the financial requirements of utility

money,

companies have been supplied with undue strain

of

to

Chairman of the IBA Utilities Securities Committee,

despite rise in the cost of

ports,

presented at

Convention

Association,

Harold H. Young,

of

Underwriters, Distributors and Dealers in

market and see prices de¬
subsequently but at least

Corporate and Municipal Securities

their investment is restored at the

maturity

the

of

bond.

the

On

other hand, they may purchase a
preferred stock at the wrong time
arid because there is no obligation
to retire the preferred, they may
never see their money intact again.
This

line

of

approach has led

demands
investors

DISCOUNT

from

stock

fund

some

gives

of the

of the

attributes

of

a

utility companies provided
funds but, more recently,

these

been

a

Members New York Stock Exchange and Other

sorbed

YORK

in

*

Telephone: HAnover 2-0600
1636

amounts by

,

Tel: National 8-2545

LONDON, ENGLAND
I

Direct

—

,

,

(

Representatives'

Wire Service

—•

Teletype N.Y. !-2lt

Keyser Building, Baltimore 1

Eye St., N.W., Washington 4

definite unwill¬

reasonable

STREET, NEW YORK 4, N. Y.

25 BROAD

*

ingness to do this, particularly as
preferred stocks seem to be ab¬

,

Exchangee

*

preferred

a

For a time some

long-term debt.

there has

NEW

sinking funds on
stocks.
A satisfactory

preferred

OF

CO,

H I R SC H

for

sinking

CORPORATION

to

institutional

some

t

,

Jel: Lexington 9-7861

;

^Offices, GENEVA • AMSTERDAM

New York, Washington

and Baltimore

buyers not insistent upon any sink¬
ing fund. The utility companies,
in

general, object to these funds
adding to their problems of

as

raising capital.
these

provide

somewhat

crease

preferred
as

Dealers In

A willingness to
funds might in¬

many

from any

amount

the

of

available
institutions shy away
purchase of utility pre¬
stock

money

ferred stocks at the present time.
Others like the higher rates
1

United States Government Securities

!

able
are

Established 1856

\

H. HENTZ & CO.

j

•

avail¬

against those on bonds and
fairly regular buyers.
as

As to the market for

utility

com¬

Members New York Stock Exchange and other

stocks, we find that
in the year which has closed av¬
erage yields have declined mod¬
estly and there has been a slight
upturn in price-earnings ratios.
Using the monthly compilations of
pany common

Bankers Acceptances

C. A.
a

Turner of Chicago, we find




New York 5, N.

Y.

„

1954, of 4.9% and a year later the
figure was 4.7%. In the same pe¬
riod
the
average
price-earnings
ratio went up from 15.3 to
declined

to

as

low

as

4.5%

60 BEAVER STREET, N.
New York

stocks

price-earnings ratio
high as 16.6. Public utility
were

not

immune

in

the

sell-off in the market in late Sep-

v

Sherry Netherland Hotel (PL 1-2220)
CHICAGO

DETROIT

BEVERLY

PITTSBURGH

HILLS, CAL.

Y.C., B0 9-8420

Cify Branches

& 1430 Broadway (PE 6-5775)

MIAMI BEACH

CORAL GABLES

GENEVA, SWITZERLAND
BUENOS AIRES,

HOLLYWOOD, FLA,

AMSTERDAM, HOLLAND

ARGENTINA

Underwriters and Distributors

and

average

was

as

■

15.4. In

intervening months average yields
the

exchanges

Main Office

reported average yield for util¬

ity common stocks in late October,

Fifty-Eight Pine Street

leading stock and commodity

of

Corporate Securities

'

52

The Commercial and Financial Chronicle

(2576)

Thursday, December 15,1955

...

Report of IBA Nuclear Industry Committee
The

Nuclear

Industry Commit¬

national

Investment

the

permanent

set

was

the

of

up

as

reports on

under

of

of

ment

The text of this
.

garded

in

1955

the future

as

the second phase in the

nuclear energy.

automotive, aircraft and
other heavy industries, as well as
insurance companies, banks, unirubber,

re-

marking

history of

The International

Conference at Geneva held

scale

first

well be

may

and

versities,

the

on

private

,

.

*

,

.

,

industrial company now employs

incurring relatively large obli¬
which might bind^ them
politically, as well as economi¬
cally, and restrict their jealously
gations

...

This

,

spirit

infectious

these

operations

producing peared to feel the natural human

are

substantial profits. In addition to urge to compete with their fellow
fees of some $2 million net annually for the operation of A&C
facilities, profits are also realized
from its direct activities in uranium mining and milling, in
metallurgy and other divisions of

scientists in adequate disclosure,

its regular business which contribute to its nuclear business.

Calder

The British put particular

phasis

The

International

fair

fuel.

Answering this question
politically most delicate be¬
the

cause

em-

aspect

necessity,
potential producers of plutonium,

their relatively modest plant, the
Hall.
imnrpccfvi

R1I<Sciflne

Thp

more

than

bv

Their

nijrfltinn

their

bv

tho

scientific

concrete

delegation

an-

of

79

!Lenticts

NaWonfaMefr^in fetroLecfas

to their western con£erees who

was

snecial

of

interest

material

countries
which

to

course,

800

provided

bv

"delegation.

in it. For example,
atomic project employment is now
concerned

the

Some

tneaart
Earlier

in

the

year

p

P

«

p

v

the release of restricted

d

f'

fn

flnnm

t

cuss

hitherto highly centop secret phases of

many

sored

and

H16

an

0ur

g

leadLn!
substantial

ing

a

role in nuclea

operation and research.One major

informa-

of

great

We Have An Interest In

neutrai

powers

few

a

penaities.

Approximately
were
read by their
comprising
most
of

thors,
the

in

names

field

The

of

world

atomic

:*:>'< i

? ,•

divide

of

York Stock

American

require

nconliarlv

into

the

the
fuel
this
ad¬

power

and

about

Exchange

Stock

build

to

category

Exchange

of

main

them.

The

participants

of

countries

System Teletype NY 1-1459

those

have

who

somewhat

their

dom

Sfi€<lcUl4t& itt

UNDERWRITERS

The

a

reactors

wide

sub¬

for

surprises

appeared

Continued

on

on

at
the

page

96

and DISTRIBUTORS

CORPORATE SECURITIES

RIGHTS

Homer O'Connell & Co.
INCORPORATED

120

BROADWAY, NEW YORK

that

centrated

more

third

The

fourth

ideas

group

Shelby Cullom Davis & Co.

on

category

the various

on

establishing

*

furnished

the

methods

Underwriters

most

elaborate

ex¬

INSURANCE STOCKS

surpassed the others
in information and workmanship,
many

mockups.

head

the

of

Committee

C. J. DEVINE

&

helped

CO.

in

his

come

Washington

St. louis

•

•

models

Atomic

establish

Energy,

the

CORPORATE
Oldest

Stocks.

AND

MUNICIPAL

BONDS

Specialists (with Predecessor Firm) in Insurance
Serving Dealers and Institutions since 1927.

atmos¬

phere of free interchange of ideas

HAnover 2-2727

Street, New York 5

to

working

Senator Anderson,
Joint Congressional

on

and Dealers in

delegation of 350

and

including

Exchange

primary atomic

a

The American

Members New York Stock

con¬

energy program.

and

NY 1-1896

would

relatively

its

in

The

hibits,

System Teletype

each

the
types of reactors to select and to

of

Bell

Telephone

DIgby 4-0770

power

outdo

to

confirming its

build.

5, N. Y.

public competition.
group asked for de¬

involved.

was

statement,
rethink

to

"The
our

time

whole

has
110 WILLIAM

secu¬

STREET, NEW YORK 38, N. Y.

Pittsburgh

San Froncisco

rity policy

on

power

reactor in¬

formation toward the end of mak¬




great

Conference

leaders

elementary approach to the prob¬

-u

the

of

One

the

The

competed

three

The

information

it

lems

•

the

at

government.

the

second

tailed

Cincinnati

above

concentration

a

anxious

in

help

in

with
in

energy

United King¬

the

U.S.S.R.

research.

other

•

a
competitive
The solutions of such
as these must be made
highest policy levels of

plants

price level.

ap¬

economies.

another

interest

seemed

Cleveland

world

reached

of atomic

any,

the

range,

and

•

the

probable costs of

third

studying the

are

States,

one

ject

Philadelphia

across

the

of

backward

more

own

and

with

of

•

forth

raise

consists

only the initial planning stage for
programs,
and the fourth,

United

Boston

the

shut¬

who either possess reactors or are

to

•

and

in

radioactive elements

shnrt' problems

conventional power.

during the meeting. The second
category
includes
Canada
and
those
western
European nations

plication, if

Chicago

back

to

involved

cost

highly

could

use

nations
four

major
nuclear
contributed
the

possess

nations who

48 Wall

imnortant

rplntivplv

ctrpec

be

enable

after

in

such
Bell

i<-

t

fuel

the

that

original exporter to extract
plutonium and return fresh
after
reprocessing,
but,
if
were required politically, the

returned

bulk of the information furnished

NEW YORK 5, N. Y.

100 BROADWAY
—

H

Kingdom, and the U.S.S.R.,

programs
...

Ingalls & Snyder

7-6800

1:

The first group, consist¬
the
United
States,
the

already

INQUIRIES INVITED

COrtlandt

•

the

fission.

participating

United

New

mntPHnic

for

the

to

ing

Com., Pfd. & Units

Members

are

stockpiles

used

au-

science

groups.

CAVITRON CORP.

Members

supplies

build

Countries could, of

450

seemed

'

fuel

months eariier would have
Smaller countries, in weighing
faced the informant with prob- the enormous boom which might
aj3ie criminal charges and severe
be conferred on them by this
papers

\ "

conventional

£ ^ relatively limitedI and for whom

nati'Qns

72

75,000 are employed in
ot nuJ.ledr projects. ghort

some

the Atomic
taken

'

t

nnn

^000 renresSnta

some

Hves

Avczsan* t&sts. -*-tt ^ss&rssst

—

Energy Commission had

AaL

es^1.nla+t,

reporters covered the Conferand
publicized throughout

ence

ti™e

«rst

atomic weapons.

be

atomic bomb.

ditional

States

for

could

tling
wCTe

which

of

are,

the

for

&25s££tSS »«««*
United

reactors

power

uranium

use

Therefore, when power reactors
are exported
with their prepared
fuels,
the means are automat¬
ically created for enabling other

delivery

of

dates

on peaceful uses of atomic energy

Although the nudear industry

of

is

scheduling

excellence

Conference

trade

when
for

of the meeting, quoting prices and

meeting

The Geneva Conference

the

on

One vexing problem

was raised
foreign customers, shopping
power reactors,
asked about
when they could expect a supply
,

.

seemed

about 16,000 in its nuclear and and scientists in countries within
associated activities. Furthermore, and without the iron curtain ap-

research

laboratories.

TlZtion oAhe^tomlc

which

be¬
one

three

guarded freedom.
.

tion to corporations and individ-

of

deliv-

'its

ered

cor¬

state¬

a

policy by the IBA with respect to "penny" stocks.

Angeles,

Calif.,

•

William S. Hughes

of

uals who had a legitimate interest
in the commercial development of
nuclear energy. In the five months
annual report through October, 1955, 476 permits
to the Con- had been issued by the AEC givvention of the ing access to previously classified
Association at data.
These permits were issued
Hollywood, to a veritable cross section of
Florida. American business. Included, for
Report follows* example, were a number of utili^
*
' ties, companies in steel, petroleum,
Los

the current uranium stock speculation and the

sought by the NASD and the SEC. Recommends

measures

&

e r

Inc.

the

great
They seemed worried
politically of the effect at home

Wag-

11

e n s e

Durst

of

of

rective

,

S.

William

other

The report comments on

the

energy, were

powers.

Hughes, Presi¬
dent

the implications of the International Conference held in Geneva,

along with the recent trends and developments in the field of nuclear industry.

in

of

source

privately
apprehensive
of
coming "atomic colonies" of
or

the past year,

Chairmanship

vast

new,

and headed by William S. Hughes,

year

one

Association
.

The year

by the IBA last

Bankers

which

tees

New committee, set up

of
commit¬

tee,

ing
and

more
use

of it available for study

by industry."

Telephone BEekman 3-0626
"IN THE HEART

OF

•

Teletype NY 1-384

THE INSURANCE DISTRICT"

Volume 182

Number 5490

.

.

The Commercial and Financial Chronicle

.

53

(2577)

Report of IBA Oil and Natural Gas Securities Committee
W.

C.

(Decker)

Jackson, Jr.,
President of the First Southwest

Committee, under the chairmanship of W. C. (Decker) Jackson, Jr., President
Company, Dallas, Texas, presented to the 44th Con¬

Company of Dallas, Texas, Chair¬
of

man

the

Securities
vestment

Oil

and

Bankers

America, released
nual

Convention

Fla.r

a

tailed

Natural

Committee

of

the

vention,

In¬

at

legislation affecting the industry and

de¬

developments in
the industry
during recent years.
>

the developments and the

on

on

as

a

comments

competitor to oil and

recent

tween the

ucts

and proposed

It

not

was

until

approximately
old, inefficient dis¬

1913 that the

tillation proc¬
for

ess

discoveries

new

artificial production control,

prices for
tuate

refined

and

while

changing market conRefining costs have little
on
prices.
Moreover, al-

effect

into

tries

though crude oil prices are relatively stable because of produc-

more

usable

com¬

ponent

tion

parts

control

measures,

cracking proc¬
using
high heat and
pressure.
as

a

research

the
tion

and

W.

engineer¬
ing principles,

C.

Jackson,

Jr.

to obtain
more

an

this

motivating

evolution

force

can

behind

readily

be

found in the problems which have

this

division

for

years.

efficient processes
increased yield of the

of

in

the

cracking,

.

ponents
of

j

and

division's control.

the successful

Crude oil costs

mainly

by

the

development

qqq

for

todav

is

cracking
comnara

a

"developmenT All

requiring

larger

a

capital

,

e

lytic

fuel.

aviation

agents

In

both

,.

8,440,000 barrels

permitted

In

1954, the

day

per

l955-8 640,00q barrels

cases,

Inventories

£4

application of cata-

has

barrels per day.

total capacity of all refineries was

the synthetic production of motor

,,

a

year

in

and

ucts> exciU(jing
Oil, were below inventories
the same period in 1954.

reac-

Refiners in

in

per day

1954

laid

as

of

totsl

A '

nrofit

Exhibit "A "

mareins

However, the
independents planned to intheir
capacity by more
than 6% in 1955, against an esti-

in

njnP

wi+h

refinerv markets

respect

gathering

for the

Pssins

weighted

a

of the four main products

average

crease

transporting
oil

crude

Studies

average'

to

costs

and

indicate

price® spreads of

around

a

$075

a

were

barrel, on the basis of the figures

shut down> wlth a capacity aggregating over 250,000 barrels daily,
Early in 1955. there were 305
operating refineries in the United

used, is required for break even
operations, making no allowance
for interest on the capital investment. It should be kept in mind

,

,

,

'

,

refineries

..V

ieim\lies were

»

vorni;roH

fr.r

uro„i,

Stafagainst 330 in 1954, 401 in hat^profit margins-ct intadjd
1945 a,ld 448 ln 1940'
From

change

time

in

™nX JS ®™a$y',ad®t

to

time,

location

with

the

crude

of

oil

of

facilities

catalvtic

cracking

flexibility

and

nrovided

v,v rpfnrmin* and other nn-to-date

instance, until
recently there has never been any
appreciable capacity in the Middle
West.

ratio

the

resources, refinery locations have
been changed. For

"

equipment

p
r
' ,
+
.
f
Retlners nave to contend not
? ,Y Y
a Y?fyT
iU

Now this capacity amounts

•

total of

v,

+

95,000 barrels per
day, distributed as follows: 45,000

KSy
,necfs,1./r

barrels in Minneapolis; 30,000 barin North Dakota; and 20,000
barrels in Duluth-Superior. This

ylelds of dl^ferent products with
r?sPecj to demand- °yer a

a

.

rels

aue

to

°

,

,

Daiancin§

T10'^0£jeari®''

Snt.aftacrease
suostanuai increase

of course,

to the development and

pro-

in

Continued

on

page

particular

Underwriters

penditures, estimated in
$800 million, in 1954

excess

of

•

mainly
for catalytic cracking and cata¬
lytic reforming facilities.

Members New York Stock Exchange

The

ratio

of

•

•

were

Distributors

catalytic

cracking
facilities to crude capacity of re¬

investment

continues

to

rise, reaching

•

of

securities
.

finers

of

corporate securities

dustry as a whole was increased
by only about 2.4% in 1954. Ex¬

n>'

.

•

•.

•

approximately
from 33%

a

38% in 1954, up
year earlier. Refiners
mutual

will continue to emphasize greater
of catalysts.
The octane race

funds

use

continues
1955

New York

and

unabated.
1956

Refiners

in

begin making
100 octane gasoline, since higher
compression ratios are indicated

Barrett Herrick 8c Co.,Inc.

may

for 1956 automobiles.

35

NEW

Catalytic
and

more
a

reforming
than

further

capacity
in 1954,
rise is indi¬

YORK

5, N.Y.

Syracuse, N. Y.

Springfield, Mass.
Rochester, N. Y.

Washington, J). C.

Arlington, Va.

doubled

sharp

STREET

St. Louis, Mo.

Philadelphia, Pa.

increase.

was

WALL

The ratio of

premium gasoline made in pro¬
portion to regular is expected to

Providence, R. I.
Kansas

cated for 1955; a new round of ad¬

Bethlehem, Pa.

City, Mo.

ditions
to
catalytic
reforming
capacity of refineries is expected
in 1956.

KIDDER, PEABODY & CO....
•

What is your

Makes

kets in

primary

mar¬

extended list

an

of all types

of

corporate

securities.

trading problem?
Our

•

Through

wire

broad

large and experienced

a

nation-wide

system

provides

institutional

and

dealer

Trading Departments
be

helpful

not

let

us

to you.

may

costs

Why

•

coverage—and
you less.

Provides facilities for

skillful

know your

handling of large

blocks without disturb¬

trading requirements?

ing existing

street mar¬

kets.
Address
Mr. Alfred

J. Stalker,

Mgr., Dealer Relations

Department.




Kidder, Peabody & Co.
FOUNDED

1865

17

Exchanges

\Vall Street, New York 5, N. Y.
Chicago

Philadelphia

San Francisco

This

reform

equipment is needed

various stocks,

such as
naphtha, into high octane gasoline.

Underwriters and Distributors

Continuing progress in reduc¬
ing costs may pave the way for

Industrial, Public Utility and

increased

use of alkylate in motor
Currently, this product is
going primarily into high octane
aviation gasoline. Polymerization
remains an important process in
maintaining octane levels in the
refining process. The basic pur¬
pose of all the foregoing is to ob¬
tain
higher
value
in
products
greater quantity from the barrel

fuel.

of

crude.

Greater

use

of

Railroad Securities

Municipal Bonds
Bank and Insurance Stocks

Unlisted Seniorities

new

methods, such as hydrogen treat¬
ing, can be expected.
As a rule, a large refinery must
undergo almost constant modern¬

Laird, Bissell & Meeds

ization to keep it on a highly com¬
petitive basis. Thus, large amounts
of money probably will continue
to be put into refining facilities
and these operations promise to

become

Members Neve York and American Stock

Boston

to

even

more

flexible

and

efficient.

has tended to become concentrated

large

NEW

120

YORK

AND

AMERICAN

Telephone BArclay 7-3500
du

pont

plants.

Major

refiners,

44

building

whitney

new

haven.

STOCK

EXCHANGES

BROADWAY, NEW YORK 5, N. Y.
Bell Teletype NY 1-1248-49
philadelphia national bank

philadelphia,

wilmington, del.

Because of its increasing tech¬
nicality, refining in recent years
in

MEMBERS

ave.

conn.

n!

gasol
gasuime

Remand required a stepping up of

duction of Canadian and Williston
Basin crude.

on
upgrading refinery
operations, for the purpose of ob¬
taining higher quality products.
Thus, refinery capacity of the in-

Wertheim & Co.

of

proc-

that

emphasis

<

of
as

J

•

ThP nroducts nrice is

earlier.

growth of capacity is

1955 of all prodNumber 2 Burn

tcr;
byf
products'

products

®ilrefinersif appenL^hereto

small

j
syn-

ery runs are at the rate of 7,600,-

+

processes

than

At the Present time, crude refin- to

com-

i

j

the

in

complementary

and

determined

a

decom-

or

position, of crude oil and its

Refining profits are largely sub¬
ject to price factors beyond the
are

As

by-products.

of

persistent research, important advances have been made
both

process.

plagued

catelvtic

recent

though

indus-

valuable products and better

utilization

purely refining operation
highly technical manufac¬

The

tively

be

can

the advantage of affording greater
refining
flexibility
and
larger
yields of higher quality products,
It is interesting to note that
crude refinery runs at the end
of World War II were approximately 4,000,000 barrels per day.

result

turing

pranked

as

thp
eross

acctf-K,

an

necessary

percentage that each

showing

in

investment,,catalytic cracking has

from
a

Commercial

more

this division has been transformed

into

products which
thesized from them

hydro-

differ

develop

chem¬

ical

a

coal-tar

therefore

try is continually endeavoring to

applica¬
of

this situation, the

from
and

the

so

rneet

been

daily or
more of
throughput capacity, held
about 81% of industry capacity at
the start of 1955, or
slightly more

majors.

a

to

have

de-

the manufacture of synproducts from oil hydro-

carbons

crude.

index, it is
weight the various

barrels

mated rise of less than 1%

onera-

of

the

100,000

structure

Consequently defining
tinns hav^not made
favmabte
contribution t^totll nrofUs and

Now,

result

which

of

owning

carbons, which differ in molecular

relatively short Deriods

by

impos-

in

thetic

refining

esses

d

e

beneficiaries

velopments

profit,

supplet

m e n

are

made

margins
are
constantly
changing
and
seldom
remain
highly favorable for more than

was

considered

sible.
The textile, solvents, explosives,
plastics, and many other indus-

flue-

products

ating crude oil
its

To obtain

of

to

tions formerly

with

ditions.

separ¬

of

of;

the cost of the barrJ

the
amount

prod-'

barrel

a

-

rate

iThe Committee's
Report, in part,

follows:

all the

from

rel

producers.

gas

value of

derived

crude oil and

the threat of atomic energy

on

representative, as prices
by company.
margins be¬

vary by locality and
An index measures

current situation in the

industry, both in the United States and Canada. Discusses

Hollywood,
and

detailed report

a

of

to the 44th An¬

comprehensive

report

Gas

Association

Indices of price spreads are not

strictly

of the First Southwest

basel

switzerland

160

eldg.

pa.

w.

broadway

salem,

n.

J.

112

The Commercial and Financial Chronicle

Thursday, December 15,1955

.,.

(2578)

64

Report of IBA Investment Companies Committee
'

Variable Annuities, taxes

Association of America,
held at Hollywood, Fla., Walter L.
Morgan, President of the Welling¬
ton Company of Philadelphia, as
Chairman, released the report of
the Investment Companies Com-

Redemptions

mittee.

10

Bankers

The

of the Report follows:

text

been

have

There

of

number

a

developments in the
company field during
past year which your Com-

Companies. Says

months

$382,000,000

'Total

interesting

of

Investment

investment

the

feels

mittee

might
terest

be

a

in¬

of

matter

the

to

members

of

ment

Association

of

a

very

financial

the

of

America.
It

sales of open-

vestment

shares

are

months
were

level;

Oct. 31,

$1,008,569,000
$1,008,569,000

for

any

the

12

sales

Walter

previous
months

were

Oct. 31, 1955--

in

Included

of

1955 sales
than

more
more

—
—

full

year.
ended
Oct.

For
31

follows:

as

Oct. 31, 1954
substantial

of

Morgan

10

ended

believe

the

invest-

figures

Legislative

are

shares be¬
_
ing made through monthly purchase
plans which, for the 10
months
ended
Oct.
31,
1955
amounted
to about
$112,000,000.
company

Efforts

During the past year there
several

developments

of

their

Investment

of

these

ciation

certain

ments

were

In-

Committee,

Companies

while

been

Dealers

Securities

of

vestment

amend-

restrictive

adopted over the obSince

jections of this Committee.
that

time

negotiations

are

securities

salesmen,

various
tion

states would

of

variabie

committee

permit
that

_r

development affecting the

technicalities
annuities

L. f. Rothschild & Co.
1b99

exchange

exchanges

salesmen

philadelphia

rochester

NY 1-471

or

advantage

ship of
I

common

try

to

other

presented

The committee recom-

Fvrhan£?p

securities.
mends
0

regulations

that this

as

regulation

beyond the full disclosure con-

able

.

without

a

owner¬

stocks.

f

of its conclusions with the

the

Board

1

I

I
I

I
I

30 Broad St.

New York 4

Telephone DIgby 4-7800
MAIN

ST.

&

Teletype NY 1-733
MEETINGHOUSE

LANE

SOUTHAMPTON, L. I., N. Y.




*

■

I
I

Pershing & Co.

I

I

I

Members

I

I

American Stock Exchange

New York Stock Exchange-

I
Chicago Board of Trade

I
I

Perhaps the most

of

Governors

120

BROADWAY, NEW YORK 5,

N. Y.

j
I

-

released

as

of

57

National Association of Securities
Oct.

13,
Copies of this release have

mailed

to

all

on

NASD

I
•

I

mem¬
-

bers,

additional

and

ciation

Exchange

on page

I

from

of

ommends

take

the

copies,
NASD

are

the

of

the

National

Securities
that
lead

that
to

I

Association

effect

by

the

Securities

ATLANTA

BEVERLY HILLS

CHICAGO

DETROIT

BOSTON

BUFFALO

possible

enabling
Congress

institute

to

legislation
to

result,

bring about
that

the attention of

the

proper

before

HARTFORD

LOS ANGELES

and

Exchange Commission, either un¬
der current statutes, or if this is

sired

Wires

suitable

contract

not

I
Private

rec¬

or
bring
regulation of the
proposed variable annuity type of

about

I

Asso-*

Dealers

the

the

de¬

NASD

call

Congress and the

I
I

upon

In essence, the Board of

Governors

Stock

America

the

request.

American

of

continued and

Continued

Securities and Exchange Commis-

Investment

the

matter be

this

in

of

Association

of vari-

development
in the
is the position taken by

available

Members

Bankers

curities Commissioners is filing a

which

significant

1955.

Exchange

legislation

annuities.

.been

Stock

cooperation

decided tex

authorize the sale

Dealers

York

Copies of

Commission

re¬

the different
the financial indus¬

of

last year

New

brief, igs
Securities and

the

counsel of the different financial
organi^tionsorji^sociaions.^ the
^ur
committee recommends that

upon

This committee of the State Se-

copy

to

ExcbaTlge Commission, uopies.yj.
the brief have been flled Wlt
he

should

among

delay

would

Members

Association of America has

ers

glad to report that there

am

segments

Hardy & Co.

states,
Bank-

variable

outright

over

cooperation

for Banks, Brokers and Dealers

various

eraj ancj s£ate

has been well directed and active

BROKERAGE SERVICE

the

in

for thp Tnvestment

Qpl

state securities

regulations and with

MONTREAL

STOCK Cr BOND

iur's

authorities

.

gard to Federal
Bell Teletype

would Properly

are,

insurance

BROADWAY, NEW YORK 5. N. Y.
2-4600

of a

for all practical
purposes, a security, and in fact
an
investment account, which, if
approved, could be offered to the
investing public by thousands of

members

chicago

believe

we

form

read and approved this

'

significant

most

the

in

public

the

Counsel for lhe Investment bans

the

'

the

...

.

,

,

™

this

in

investment companies.

amendments.

securities business is the problem
of variable annuities.
Stripped of

Telephone: REctor

„

to

crea-

annuities,

believes

regulation as that imposed

current

boston

since

«require'at

Perhaps

120

the

report on the variable

a

public interest they should be reqUireci to be under the same Fed-

con-

Variable Annuities

american stock

and!

of

annuity subject at the insurance
convention
being held in New

-Sates-" varlabl?

tive

Investment Securities

leading

states,

variable annuities should be suWeet to t e
tc ion o
be licensed as security salesmen, the Securities and Exchange Corn(4) jf tbe legislatures of the mission, or appropriate regulatory

to obtain relief from these restric-

and other

will make
m

and

EM'MS inAan

hew york stock exchange

various

Sub-committee

Life Insurance Associations which

•

dlfinU^of

investment compathe National Asso-

by

through

nies

had

amendements

advocated

established

the

,men 0j

Policy governing literature used
b^ investment companies. Certain

bodies. The chairman of the Naof

0f

Exrtangr^mMS1"'adopted

impor-

*ance 'n dealings with legislative amendments to its Statement of
tional Association

of

the

appeared

particular type of business.

were

_

,

'iLrf

.

tutions.

$1,208,000,000
776,000,000

these

panies, with (heir statistical, research and field personnel, with
their economic and business contacts, compare favorably in depth
and ability and accomplishments
with other leading financial insti-

increases in purchases

open-end

We

management organizations
our
leading investment com-

ment

at

the

in-

expand, increase and immanagement facilities and

prove

contacts.

high

of

companies has enabled

them to

end invest-

ment company

for

growth

continued

This

a

'

membership.

might be

noted that the

continuing

Association

Companies

important segement
scene,
but also
represent a source of continuing
and increasing business to IBA

Bankers

'

before the Treasury Department to the in- York beginning Nov. 28.
equitable tax situation that would • An informal committee of repvestigate the role of institutional exist if the current tax status of resentatives of various investment
investors in the stock market, life insurance companies is per- companies has been active in opInvestment companies are now mitted to expand to the new vari- posing legislation in New HjmPcooperating further with the Ful- able annuity business; and to sbire- New York. Texas. Marvbright Committee by agreeing to recommend to NSAD . members land, New Jersey and the District
furnish for the 20 largest funds that acting in their own behalf of Columbia. At this writing legdata on purchases and sales of they should take whatever action ls*atl°n ba^ b(:en de ^at^? or
portfolio stocks for the past three is necessary to prevent enabling abandon(:d in New _York, iexas,.
years and for selected earlier pe- 'legislation in
their states until Maryland and New Hampshire; it
riods. The Fulbright Committee such time as the Federal Govern- ls still pending in New Jersey,
has also asked for data on sales ment acts. In furtherance of this^ where a determined etiort is being
and repurchases of investment objective it should be noted that'' planned to pass this legislation
company shares for similar pe- the National Association of Secu- before the end of the year. In the
riods. All of this information is to rities Dealers has sent copies of District of Columbia a variable
be furnished only on a composite the action of the Board of Goy- .annuity type of company has been
basis by the National Association ernors to all NASD members.
organized. It is presumed, howof Investment Companies which
Extremely important, also is the ever, that legislative action or
has negotiated with the staff of report of the' Variable Annuities clearance by Insurances Commisthe Fulbright Committee to re- Committee of the National Asso- sioners would be required to make
ciation of State Securities Admin- these variable annuities saleable
duce the required information to
a
point that will provide the istrators which has taken the in most of the states. Furthermore,
the SEC has been asked to rule
maximum information with the position that:
(1) Variable annuities fall whether this company is subject
minimum amount of work load
and expense for investment com- within the broad definition of se- to,thf;''r jurisdiction. it might be
In this connection,
panies and their sponsors.
curities under the various state
interesting to point out that an
Securities and Exchange Com- laws.
,
mission Rule No. 134, as finally..
(2) Since state laws require informal working committee from
enacted, and which governs so- registration of securities before
investment comoanies inauscalled tombstone advertising for any offerings to the public varihas filed with the Securities
all new issues, contains express able annuities should also be re- and Excbange Commission a brief
permissive
language
to
enable quired to register.
prepared by counsel whici holds
investment companies to describe
(3) The states require licensing to the position that securities sold

of
amounted
to $8 492 496 000 on September 30
this year) representing an increase
of
$1 194 902,000
over
the 1954
year-end ' total.
It would seem
clear that investment companies
resent

sions
with

affecting Investment
^ £

Fulbright Public Hearings to in-

to

thus have not only grown to rep-

Invest¬

the

amounted

5.3% of October
with 8.2% last
assets of all members

National

the

or

"

Companies

lower and for the

1955

and other matters relating to

growing spirit of cooperation has developed within the In¬
vestment Company industry.

a

compared

assets,
year.

are

of

sion, with the Securities Commis¬

legislative activities, the problem of

Chairman Walter L. Morgan discusses

1, at the 44th Annual
of
the
Investment

Dec.

On

Convention

PITTSBURGH
ST.

LOUIS

PROVIDENCE

WHEELING

SAN FRANCISCO

YOUNGSTOWN

j
[
I

Volume 182

Number 5490

.

.

.

(2579)

The Commercial and Financial Chronicle

-

55

Report of IB A State Legislation Committee
November

-On

29th,
at
the
Annual Convention

Forty-fourth

of the Invest¬

.

Association of

America, held
Hollywood,
Florida, the
State Legisla¬
in

tion Commit¬
tee

the

of

Association,
whose

Chair¬

is

man

L.

Paul

Mullaney,

President of

Mullaney,
Wells & Com¬
jl.

i.x

Chicago,
•
Illinois, re¬
leased its Annual Report for 1955.
pany,

,

The text oj the

Report follows:

The state legislatures have been
in

regular

45 states.

this

session

year
in
been many

There have

important developments in state
legislation affecting the invest¬
ment banking industry, some Of
which

summarized below:

are

State

(a)

Securities

Amendments

Act

State

to

ing current

Secu¬

rities Acts This Year

Amendments have been adopted
the following 20 states:

Michigan; Minnesota; Nebraska;
New
Mexico;
North
Carolina;
North Dakota;
Oregon; Ohio; South Dakota;
Tennessee; Texas; Vermont; Wis¬
consin.

pleased

that
complete new securities acts have
been adopted this year in Texas,
are

to

report

Tennessee and New Mexico. Work
had been underway in these three

states for
obtain

more

than five years to

adoption of

securities

new

acts.

cf

has required

the

under

securities

the

showing

a

issued

were

authority of the laws

Kansas

or

other

some

state.

from the Merrill Foun¬

grant

a

'

,

where

C.
Pierce (Rauscher, Pierce & Co.,
Dallas), Chairman; Mr. Hal H.
Dewar (Dewar, Robertson & Pancoast, San Antonio); Mr. Wilbur
E. Hess (Fridley, Hess & Frederking, Houston), and Mr. Edward
Rotan (Rotan, Mosle & Co., Hous¬
ton). The Committee received the
support and cooperation of Gov¬
ernor Allan Shivers, Secretary of
State A1 Muldrow, Assistant Sec¬
retary of State Roger Tyler, Secu¬
rities Commissioner Jay Wilson,
Mr. Edward Austin (Austin, Hart
Act,

new

&

Mr.

are:

Parvin,

notification

except that it
qualification procedure

provides a
mining and oil securities and
bill

is

the

Securities

result

with

work

of

of

Commissioner

of

Commissioner

Securities

engaged in the

now

permit

In North

istration

to

bring

sions

Carolina, several

July

the

law

1,

ma¬

and

cer¬

sell

to

secu¬

the

carried

reg¬

a

shall

statement

We

(Equitable Secu¬
rities Corporation, Nashville), and
Mr.
Beverly
Landstreet,
3rd

tion

Group,

(Clark, Landstreet & Kirkpatrick,

offers

sell

to

solicitation

of

offers

securities for which
statement

shall

the

under

securities

to buy
registration

a

have

federal

filed

been

Securities

Act

of 1933 in

Illinois, Michigan, New
North Carolina, Minne¬

Mexico,

sota, Ohio, South Dakota, Tennes¬

Thad Eure.

that

and

see

the

Se¬

Texas

new

Committee of the Southeast¬

ern

year

(or enable the admin¬
to authorize)
pre-regis-

and

Greens¬
Johnson
Greens¬
Legisla¬

Gus Halliburton

that

note
this

tration

by

Ralph Owen (Enuitable Se¬
curities Corporation, Nashville), a
member of this Committee, Mr.

to
adopted

istrator

special committee of the Secu¬
Dealers of
the
Carolinas,

(Vance Secuvities Corp.,
boro), and Mr. Marshall
(McDaniel Lewis & Co.,
boro), Chairman of the

new

was

Mr.

North Carolina Secretary of

of
close

in

Group,

ferred

the
co-

Committee

Legislation

above

to

which

acts.

re¬

Bacon, Stevenson &. Co.

with

are

>

♦

complete

Washington

new

Act

Securities

with

Ion
'

the

worth

in

the

had

Washington

the

in

work

Sherman

Ells-

Commissioner

hill.

Se-

members

IBA

cooperated

Mr.

(Wm. P. Harper & Sons &

and Mr. Lyie
Northwest ComSeattle) are due particular

| Company,^ Seattle)

Telephone DIgby 4-4100

| Wi'soo
{
*

E.

Group, Mr. Ira D.
(Allison - Williams Com¬
Minneapolis), Chairman of

Company,
ber of the

Minneapolis), a mem¬
Legislation Committee

of the Minnesota

(c)

within

to provide

the

a more

satisfactory exemption for sales
by' Registered dealers in the sec¬

\

ondary market.
(d) Harvard

Law School Study
of State ^ecurities Regulation

In

Dealers

pany,
credit for .their work

on

the bill.

Kansas,

countered

in

dealers

problems

in

sales

on

the

Sec¬

the

en¬

under

application

tion

a

to

for

under

the

specific
rules of

market

the

for

Commission

a

to

act

submitted

be

on

the

Cor¬

security

and

Commis¬

that

security

extended only to the
applied for it, (2) has
been effective only for one year
has

dealer who

draft

a

to

of

Conference

sioners
and

Foundation.

vfilL.include

uniform state securities

new

tional

Uniform

American

the

Na¬

Commis¬

State

Laws

Associa¬

Bar

tion for approval.

A second draft
uniform state se¬
prepared under this
study was made available the
latter part of August. That draft
contained
many
objectionable

of the proposed

curities

act

provisions,
both
technical
and
substantive, but we understand
that many of the
objectionable
provisions
will
be
eliminatedfrom the third draft which should

available

be

Accordingly,
being
a

in

^new

considered
securities

draft be used.
a

report

draft

few

a

we urge

weeks*.

that, in

on

basis for
third

a

the

act,

It is expected that

the study and a -final

the proposed state secu¬
will be published in

of

rities

as

any

draft is

where the Harvard

state

act

1956.

Proposed New Securities Acts

(c)

—1955

for

tee

the

mission

ginia
of

a

drafting commit¬

Virginia

Com¬
draft of a
Virginia Securities

prepared

Code.

Code

a

to

proposed

for

comment

dealers

Vir¬

act circulated

new

among

included

all of the

Virginia

several

tionable provisions, but

were

the

legislature in 1956 as part
complete new Corporation
The preliminary draft of

the

exemp¬

sion the exemption for a

(1)

of

Merrill

.

study

complete new
Act to be submitted

have

secondary

poration

the?

This-

In Virginia, a

the
Securities Act because it exempts

only

from

Group.

Exemption for Sales by Reg¬
istered

bill to provide

defeated

was

| legislature.

(Harold

ondary Market—Kansas
a

»curiTes

work

the
Minnesota
Group, and Mr.
Willys P. Jones (Allison-Williams

and amendments.

a

revised

or

next few years

Minnesota

pany,

or

In Washington,

Broadway, New York 6,,N. Y.

the

in

those of¬
actively sup¬
ported adoption of the new acts
ficials sponsored

Quist

Leo

of

Co., St. Paul), Chairman
Legislation Committee of

the

Owen

to

North Carolina, because

Slock.Exchange
Stock Exchange

BONDS

of

to

amendments

the

and

result

Wood &

also due

referred

respect

the

were

Mr.

by

the new
in Texas, Tennessee and New

acts

MUNICIPAL

The amendments to permit such

state securities

officials

state

Mexico

prior to state registration of

activities in Minnesota and South

performed for
in their

on

mate¬

the securities described therein.

service

the

Special thanks

the

Members American

members

for

have

they

above

of certain advertising

rial

the industry and investors
successful work

Members New York

tion

Dakota

We commend the

Inc., Nashville), Chairman of the

curities Act permits the distribu¬

with
State

cooperation

in

amended

have

authorized

IBA

work

fine

of

pleased

are

amendments

amendments

These

result

the

with

accord

laws.

(for which

securities.

including Mr. Glenn E. Anderson
(Carolina Securities Corporation,
Raleigh),
Chairman;
Mr.
Reid
Martin
(R. S. Dickson
& Co.,
Raleigh); Mr. Charles Vance, Jr.

new

the IBA

Work on
out by

1955.

and

Kansas

A study of stfcte securities regu¬

of its basic provi¬

some

into

model

modifications, became

effective

oral

offers

to

lation- is 'being made at the Har¬
vard Law School under a grant

jor amendments to the North Car¬
olina Securities Act were adopted

model law of the notification type
some

dealers

make

to

written

1933,

It is hoped that the,
Securities
Act
may
be

been filed under the federal Act)

rities

complete

of

registered

salesmen
tain

Act

.

of some state.

prior to state registration of those

securities business.

a

a

Securities

eral

buy securities

New Mexico

(Secretary NASD Dis¬

Tennessee,

amended, in accord with

amendments last year to the fed¬

rities and solicitation of offers to

mer

NASD

securities act, based upon

be

(Minor & Mee, Santa Fe), the for¬

were

with

the

acts

securities

state

necessary

New Mexico and Mr. William Mee

6).

In

This

investment fund shares.

for

Paul Fagan

trict

type,

for

Antonio), Chair¬
Legislative

San

the

of

Charles

Committee for District 6, and Mr.

Southern

39

(3)

that

This-year, through the efforts of r
dealers under the leadership oILdation. Discusses Variable Annuities and the stand regarding them taken by
Mr. Walter I. Cole and Mr. Harry
Beecroft (Beecroft, Cole & Comthe IB A. Urges adoption of model law relating to gifts of securities to minors.
pany,
Topeka), the rules have
been revised
(1) to extend the *
-In Texas, a complete new secu¬ operation ' with
Mr.
Robert
F. along with a few that were de¬ exemption obtained by a dealer :
for a security to
all registered
rities act, which made many ma¬ Miller, Manager of the Blue Sky sirable.
dealers in Kansas, (2) to permit
jor improvements and eliminated Division of the Tennessee Depart¬
(b) Offers to Sell and Solicita¬
a
simplified application for re¬
several problems, became effec¬ ment of Insurance and Banking.
tion of Offers to Buy Securi¬
newal of the exemption and (3)
tive Sept. 1, 1955.
ties Prior to State Registration
In New Mexico, a complete new
The members
to modify the requirement as to.,
of the Legislation Committee of securities
act
became
effective
In the last annual report of this
a showing that the securities were
the Texas Group, who did an out¬ June
10, 1955. This new Act em¬ Committee we recommended that
issued under authority of the laws
standing job in their work on the bodies the IBA model law of the

'

Arizonaj California; Colorado;
Florida; Illinois; Indiana; Iowa;

and

State securities acts dur¬

and calls attention to study of State securities regulation

being made by the Harvard Law School, under

man

this year to the securities acts of

We

year,

Bankers

ment

Paul

Chanman Paul L. Mullaney reviews rmendments to

objec¬

practically

objectionable provisions

eliminated in

a

Continued

revised draft.
on

page

We hope that efforts for adoption
of the new act will be renewed in
the next session of the Washing¬

What dealers say-about this
/

1

"We want to take this opportunity to
.

our

customer*

finest

2

"1

new

want

your

(Names on request)

tell

like the Watching Service.

thing they

getting

ever

had, and

we

Service...

you

how

very

much

They think it is the

find it

very

.helpful in>

business and keeping old accounts well pleased/7

to

tell

Watching

that

you

Service

as

we
a

have

most

come

.valuable

to

assat

consider
to

ton
v

in

the

in

bill

are

now

using this service

so

Scrip

-

Warrants

only in transac¬

REORGANIZATION

buyers would not be required to
register
no

as

action

In

dealers
taken

was

Ohio;

in
on

able.

of

which

were

mem¬

der the Chairmanship of Mr.
H.

c

Legislation Committee

tJhe Central States Group,

bert

act,

objection¬

After discussion with

bers of the

of

SECURITIES

long list of

amendments to the securities

crease

but

this bill.

Illinois, the Securities Com¬

some

IRA HAUPT & CO.

-

that dealers who

engage

Ohio

Rights

the

amend

to

tions with certain "sophisticated"

with profit. You can too.

Ask for booklet, "How Dealers InBusiness Thru the Ira Haupt & Co. Watching Service."

introduced-

was

missioner proposed a

120 dealers in unlisted securities




a

legislature

secmiies act

our

organization."

legislature.

In" Okie,

Osgood

MEMBERS

un¬
New York Stock

&

120

Simmons, Chicago), the Securities
Commissioner
of

the

most

posals, but
ments
some

a

were

that

eliminated

objectionable

were

Exchange

BROADWAY, NEW YORK 5
Tel.

REctor

2-7800

several
BRANCH OFFICES:

pro¬
Buhl

number of amend¬
adopted,

Exchange

American Stock

Gil¬

Ellis

(Blunt

Donnell & P.O.

objectionable

Building, Detroit, Mich.
Berkeley-Carteret

including
.

254 Park Avenue, New York

Hojtel, Asbury Park, N. J.

103

56

The Commercial and Financial Chronicle

(2580)

Continued

from

page

only to the alertness and

37

the

of

investor-owned

companies

fully appreciated it.
Developments

some

recent

develop¬

ments which I should like to

tion

at

seem

to

me

bearing

on

this

time

men¬

because

to have

Is

the outlook for elec¬

tric utility securities.
In the first

to

call

which

have

place, I should like
to far-reaching
improvements

been

effected

in

the

art of

generating and transmitting
electric power. The average fuel
conversion

efficiency of our
steam-electric
plants
has
been
greatly increased in recent
In

1945, 1.30 pounds of coal

required,
duce

a

years.
were

the average, to pro¬
hour

of

electri¬

In 1954, the figure was only

city.
0.99

on

kilowatt

of

about

a

pound—a
Our

24%.

reduction

of

plants do
even better than that, and Phila¬
delphia
Electric
Company now
has under construction a generat¬

of

our

think, will

No other industry, I
be able to

places
the

use

or

ours.

automation in more

with greater advantage
For example, in 1930
of

number

employees of the
286,000; and

electric industry was
in

greatly increased productivity per
employee permitted the industry
to
effect
important
economies
while

giving the employees sub¬
benefits in the form of

stantial

higher wages and more attractive
working conditions.

private enterprise
permitted to participate

As you know,
has been

research

atomic

ment

about

only

vate
vate

funds,

and

develop¬

year

a

and

is

enterprise,

tion.

double

A
circuit line of this type is

estimated to have
than

of

a

a

in

use.

capacity

more

eight times as great as that
double circuit 132,000 volt

line, which is a type now widely
used.
The

use

of

automatic




any

sys¬

of

substa¬

under

considerable

burdens

restrictions, but already pri¬

under

way

kilowatts

capacity

of

employing pri¬
has plans definitely
to construct 900,000
generating

electric

using

atomic

for fuel.

You

atomic

have felt some con¬
to the possible effect of
developments on existing

public

utility

may

as

cern

investments. I do
there is any ground
Atomic mate¬
another

rials will merely serve as

of

source

fuel,

which is ex¬

one

pected to lower generating costs.
The portion of a modern electric

which is likely to
boilers,

system

power

be affected are the steam

which

represent only

of the

plant account of the aver¬

is

12%

not
in

expected

service

to

its

for

will

It

off.

written

and

remain

Even
this
be ob-

utility.

electric

age

soleted

12%

about

normal

life, serving as peaking capacity
when
atomic
plants take
over base loads.
In an expanding
even

12% will become a
constantly
diminishing
fraction
and will finally vanish, as I have
the

system

boilers have

said, only after the

served their normal life.

investment

of

over

That our indus¬
try and its allies have committed
themselves to go forward on such
$225,000 million.

a

scale

constitutes

a

tribute

not

the

leg¬

mention

which

ingness and ability to build large
hydroelectric developments
economically justified.

$iy2

continued

the

The Hell's Canyon
Idaho

dis¬

tax

minority

of

Warrior

our

privileged class

pays

income

a

tax

bills

electric

local

as

little

and

if

contributed

in

you are,

much and in which

real

a very

sense, our

In the interest of com¬

partners.

plete

so

candor

and

now

obliged

some

unpleasant facts.

refer

I

to

fairness I am
inform you of

any

because

whereas 23 cents of
dollar paid by the custo¬
electric

our

to

goes

the

support

litical activity of the advocates of
socialized

different

different places.

activity

This

power.

assumed

has

I

these

80%

against

dis¬

of

John

the

me

of

the Niagara Falls site has
up to now, at least, prevented a
giveaway of that project to the
velop

it; and also because
that the elec¬
aggressively,
and cohesively oppos¬

subsidized

encroachments

the

before

ever

public

in

its

is

More important

than any of the
other hopeful signs I have men¬

today

more

ready

torial

support

to

comments

small newspapers

from

all

ments

the

in edi¬

large

the

on

is

as

of

dences

aware

us

in addresses and

revealed

are
the
evi¬
growing willingness
part of utility manage¬

however,

tioned,

history.

more

interests.

power

tric industry is more

these

their fight to de¬

continued

have

to demand

ing

and courage
companies

tenacity

The

with which the electric

I wanted to tell you

fearlessly

demon¬

Day proposals.

(4)

the United States, in
favor of
a
privileged 20%, be¬
cause your interests and those of
the
investing public seemed to
people

been

also

has

by the Trinity River and

strated

mentioned

have

criminations

to

a

stand

up

and

fight for

rights of their companies and

their

customers, and an increas¬
public awareness of certain
facts which have been long
overlooked
or
else obscured in

and

ing

over America.

basic

Signs of Changing Attitude
Here

are

some

our

heartening

very

The

brazen

and

the TVA
their

Dixon-Yates
the

for

first

grasping
power

now

on

to

late

subsidies

at

should

hold

the

on

rected

of

purpose

advocates to

electric

the

is

way

social¬

misconceptions
to

being

oft-asserted

the

that

the

electric industry.

of the

One of the basic

episode
time

against

struggle

ization

sings:

in

forms

basis

tion

another two cents.

(1)
po¬

is necessary
enterprise can't

private

won't do the job.

or

(3) The willingness and ability
companies
of the industry to enter into part¬
of govern-^
nership
arrangements with the
ment. Our investors also pay in¬
government for hudroelectric de¬
come taxes on dividends and in¬
velopments on a joint participa¬
terest
amounting roughly to
of

mers

revealed

continued

the

to

projects,

hydo

give the lie to the claim that

now

of what is involved and therefore

to this point I have given
what I hope is an accurate,
if perhaps optimistic, picture of
the industry to which you have

Up

you

other smaller and

spectacular

Federal development

taxes,

every

Hell's

numerous

less

their

of

part

below

on

with

Federal

no

two additional

the Snake River
Canyon,
together

developments

This

utilities.

and

Rivers;

posal to construct

now enjoy at
of the 80% served by

the investor-owned

Coosa

the

of

and the Pacific
Northwest Power Company's pro¬

organizations,

the expense

proposal of the
Company; the Ala¬
Company's proposed

development

people, served by government-fi¬
nanced
or
government-operated
power

Power

bama Power

subsidies

other

and

20%

a

elec¬

investor-owned

industry

wherever

billion in¬
vestment in TVA power facilities.
In this connection, I should also

criminations

na¬

achieve¬

has
dramatically
demonstrated its continuing will¬

reimbursement

or

real

a

was

The

(2)
tric

requiring

without

on

of the rest of the

This

ment, I think.

sup¬

adequate

public's

Also

Unpleasant Facts

Some

and

return

than

These developments will
an

and

socialists

atomic age.

materials

involve

useful¬

their

the

apprehension.

and

now

to

Congress,

that

outlived

and

ness—

for

still

Transmission lines operating at

had

tems

without

tion.

provi¬
sion for keeping financial control
of this agency in the hands of

political

and

believe

was

(less than 10%) occurred during
a
period in which the production
of
electricity quadrupled.
This

in

economic

the expense

hydroelectric plants; and
nation-wide
campaign

shaping up to enlist
TVA revenue-bond

now

saying

were

not

number

the

three-fifths of a pound of
coal per kilowatt hour of genera¬

are

ago

comparatively small increase

This

newer

only

volts

time

307,000.

1954

ing plant which is expected to use

330,000

best possible answer to
gloomy prophets who only a

short

employees.

than

attention

technological

the

the

parlor pinks who still preach that
only government is big enough to
cope with the problems and meas¬
ure
up
to the promises of the

productivity

the

the

islation

our

tiplying

as

(5)

port for

tions, billing machines, comput¬
ing machines and other devices
has enabled our industry to take

they

considerable

a

to

vigor of the whole American
enterprise
system
and
its
ability to meet any challenge. It

advantage of automation in mul¬

whether the average investor has

are

tribute

a

well

the

Opportunity and Challenge
Some Recent

also

electric

free

The Electric Utilities-

There

but

courage

Thursday, December 15,1955

...

only

the

develop

our

cor¬

postu¬

government

waterways

.This is the sort,

of

piecemeal approach the advo¬
of
socialized power have
found most advantageous in al¬
laying
suspicions
and
winning
support. Sometimes their propo¬
cates

have

sals

modest

advanced

been

for

requests

as

government

aid in the face of under-development

disaster; and sometimes
pretense of seemingly

or

the

under

governmental

legitimate
in

fields

the

merce

activity

interstate

of

State and Municipal Bonds

com¬

and national defense. Their

★

★

★

maneuverings have almost always

noisy de¬
nials of any intention to compete
with
or
destroy investor-owned
been

accompanied

by

as
their plans
in magnitude and
boldness, they have inexorably
crowded
out or
proscribed pri¬

enterprises.
have

But,

operations

and

Nebraska.

Tennessee

result

has

merely

because

ernment

not

of

intentions

have

FOUNDED

810 Broad Street,

grown

vately-financed

the

1812

Newark 1, New Jersey

Telephones—Newark-MI 3-4000—New York City BA 7-5928 Tele. NK 348
Member Federal

Deposit Insurance Corporation

in

This

avoided

been

of the innocent
people in gov¬

in

and

as

BANK

NATIONAL STATE

successful

serving

who

business

supported these programs.

municipalities

the
and the

To indicate the diversity of
socialized power program

extent to which it has been

throughout the nation!

aided

by public and business apathy and

Jersey. City, Houston, Washing¬
Sanitary District,
Regional Planning Commission of
Cuyahoga County (Cleveland), and the
City of Tacoma
all use our uniquely
complete financial consulting services.

by political timidity, I need only
mention (1) the Dixon-Yates and
Clark
cent

Hill

episodes;

(2)

ton Suburban

the re¬

opinion of the Attorney Gen¬

...

eral of the United States constru¬

ing the Preference Clause of the

For almost

a quarter century we have provided
governmental units with experienced counsel
in new financing, revenue financing, reorgani¬
zation of existing debt structure, over-all financial
planning and financial public relations.

Flood Control Act of 1944 in such

to

virtual
monopoly of
Federal
reservoir
power
to cooperatives, munici¬
palities and other public agencies;
manner

as

give

a

To learn

the continued harassment of
"in¬
vestigative" committees of Con¬
gress such as the Chudoff, Flood
Control, and the Monopoly sub¬
committees and others; (4) the
extension of the preference prin¬
ciple to include the purchase of
surplus power from government
(3)

atomic

energy

installations

as

more

about

our

services and how

link municipality with underwriter
and investor we invite your inquiiy.

electric utilities by so-called

we

WAINWRIGHT & RAMSEY Inc.
Consultants

70 Pine Street
•j

on

Municipal Finance
•

New York

5, N. Y.
[«

Number 549Q

Volume 182

because

they

y.

.

natural

are- a ;

The Commercial and Financial Chronicle

mission

re¬

source.

Our coal and oil
reserves,
iron and copper

ties

our

eral

deposits, and

forests and fields are
also
natural- resources;
apd whereas
the
electric industry uses

acterists,

the developers

-other

our

natural

of

these

other

industries

the

most

important

to

less

the

smoothing

a

of

all

The

inherent

ness

from

the

Ben

cheap¬
power

Moreell,

Task

Force

and Power

sources

Commission,

Ad¬

Water

the

Re¬

think

I

to

for

the

public
cost

appeal

issue.

power

electric

of

logical

no

popular

power

to the

in

family budget. A reduction
only 3% in his tax bill would
for all of his power"; and
added:

"Technically

nancially there is
prospective
lack

of

private
stall

ability
power

needed

on

the

is

industry.

most

importantly,

bills

tired

of

favored

is

of

paying

other

people

states

and

re¬

of

trans¬

power,

not

you

-

only

aid!

will

give these basic facts the
possible publicity.
I am

you

feel

INVESTMENT

you

create,

jrom

We^

welcome

Walter L. Morgan, Chairman
\

your

;

1

*

54

page

a

that the IBA lend its full support
to alt of the
foregoing efforts.

in

stocks

Prudent Man Developments

owners

During the past year the states
of Kentucky, Arkansas, and West
Virginia (within certain limits)
have

amended

their

statutes

specifically
shares.

company

S. Amazeen
&

Incorporated

Burr,

cussion

Group,
rated, New York

be

continued.

Tax

Committee

the

of

of

Com¬

adopted under which, among other
things, investment company share¬
allowed

are

full

the

tax law where

new

than

more

75% of the gross income of the in¬
vestment company is derived from
dividends

of

Our

domestic

industry

is

corpora¬

continuing

its

efforts to have capital gain divi¬
dends paid by investment com¬

panies

taxed

shareholders

to

capital gains and not
the

various

states

as

that

states

the

and

lumbia

tax

if

they

of

Co¬

of

capital gains

paid in

are

19 states tax them

Buffalo

Charles F. Eaton, Jr.
Eaton

&
Howard,
rated, Boston

com¬

of the IBA, and can be
obtained from the Association of¬

John F.

In

say

closing,
the

that

should

we

activities

like

Paul A. Just

recounted

Television
ment

industry

over

as

in

years

interest

public
of

matters

the

affecting
the

and

industry itself.

Fifty State Street Company
Boston

the

Robert L. Osgood

operative

spirit

the

Vance, Sanders & Company

interests

This

Boston

co¬

Amory Parker
The Parker Corporation

enlightened

and

industry leadership should

Boston

prove

Harry I. Prankard, 2nd

invaluable to deal with any prob¬

Lord, Abbett & Co.

lems that lie ahead, and to work
even

more

New York

closely with the other

Myron F. Ratcliffe

segments of the financial industry
toward

a

spreading
among

common

of

goal

equity

—

Shares
Manage¬
Corporation, Chicago

Philip F. McLellan

developed within the invest¬
company

Company

San Francisco

to

growing spirit of cooperation that
ment

Egan

First California

in this report are evidences of the

has

Bache & Co.

the

Chicago
Charles M. Werly

ownership

Putnam

the American public.

Respectfully submitted,

Fund

Distributors,

Inc., Boston

cash,
Much

therefore,

remains

Underwriters

Coast-to-

be

to

done.

Public Information

38 Offices

Brokers

work,

Incorpo¬

income,

as

though paid in stock.

even

per¬

A total

District

such

as

income in
have

sonal income tax laws.
26

Doolittle & Co.

Invest¬

of

Bullock Ltd.

York

Roy W. Doolittle

ex¬

clusion and dividend credit under
the

Calvin
New

members

the

panies with the Treasury Depart¬
ment, a rule of convenience was

holders

Association

staff, but the report of the

National

Investment

of

Hugh Bullock

stocks.

fices, 61 Broadway, New York 6.

negotiations

Association

Bingham, Walter & Hurry, Inc.
Los Angeles *

are

mittee might be of interest to the
.

Taxes

Following

common

who

ment Companies and its excellent

Columbia, the State of
York, and other jurisdictions

will

citizens

our

Incorpo¬

Curtis H. Bingham

determine,
done, the

of the many other activi¬

National

District of
New

of

be

ties being carried on by this Pub¬
lic Information Committee of the

to

the

in

of

to

can

as

.

Distributors

Time does not permit for a dis¬

investment

Efforts

effort

an

precisely

as

number

income

Specialists in

Philadelphia

Herbert R. Anderson

include

<

The Wellington Company

Boston

Report of IBA Investment Companies Committee

and
V

COMPANIES

COMMITTEE

.

Coffin

Continued,

tions.

responsibility
toward the investors, both indi¬
vidual and institutional, who own
nearly $27 billion of our indus¬
sure

to finance and in¬
generating,

the
the

our

efforts.

your

.

industry

but you
safeguarding all American
industry from the blight of so¬

to fight social-, cialization;.

us

an

to

Edward

closing, I would like to ask

widest

no

part

power

forts to

Federal

There

and

increased

man-in-the-street

sick and

more

In

nor

for

need

activities.

power

of

that you, who are so closely asso¬
ciated with us, join now in our ef¬

fi¬

present

no

and

25%

gions!

pay

he

foundations
further

average

the

1%

of his
of

securities

than

less

Finally, and
getting

av¬

about

is

have

the

the

Actually the

householder

erage

not

of

preserve

helped

5T

will be

,

million

Sixty percent

debt

pubic ownership of

reason

of

has

industry's total capital funds.
funds, investment trusts,

like

more

cently: "There is

half

a

industry's

educational

has

than any other person
debunk this notion, said re¬

done

and

industry

Pension

of the Hoover

who

in¬

to

owned

provided

Chairman of

on

Motor

indirectly by life in¬
surance
policyholders numbering
another 90 million people.
These
same policyholders,
through their
life insurance investments, have

mystical
or

facilities.

government

miral

that the

Ford

sold

utility

result

a

have

to

was universally
change from pri¬

a

three

the

are

electric

in

be

direct stockholders.

beginning to
no

as

public

about

the

of

qualities of abundance

but

public ownership. On this
basis, our industry is the most
public of all business enterprises.

industry.

The public is also
see
that there
are

interests

of the

would

as

joining with

vestors, this step

road for the ultimate socialization

of

stock

In

belongs not

announced

was

ties

help to

reali¬

vate to

dustry to be governmentalized,and
to permit it to become so
only

it

applauded

that

means

industry

monied

Company

for the electric in¬

reason

few

a

when

paralyzing control of bureaucracy,
is finally
realizing that there»is
even

electric

common

and

under

growing

a

millions of Americans from
every
walk of life.
A few weeks ago,

resources

come

also

zation at the grass-roots level that

compelled to draw upon and
deplete original reserves. A pub¬
lic, which has no intention of see¬
basic

is

try's outstanding securities. Many
of them are your-clients and have
purchased this industry's securi¬

ized

'phony.'"

a

There

are

ing

facili¬

power

ties is

only
falling
water,
neither detracting from its quan¬
tity nor altering its physical charof

distribution

,

of

energy

and

the construction of Fed¬

.

projects as so-called
•yardsticks' to control the rates
charged by investor-owned utili¬

our

the

.

.

(2581X

Activities

Through its Public Information
Committee, our industry is engag¬
ing in several activities to bring
about

better

a

spread

and

wide¬

more

understanding

of

the

vestment company business.

Foreign Investments

under

program

the

in¬
This

guidance

of

the committee and Mr. Edward B.

Burr, Director of Public Informa¬
tion, is making excellent progress
in

t3lui/o/dandf). d) /cic/i t vede't
dnc.

placement

magazines

World

SECURITIES

30 Broad

WHitehall

television

through

the

'Wtm

y

made

use

Members

cooperation

of the U. S.

Treasury Department,
Department of Justice, and the

NY

1-515

Walston &Co.

National Association of Investment

Teletype

3-9200

Housekeeping";
S. News
and

Nearing completion is

for

possible

Street, New York 4, N. Y.

Telephone

such

in

Report"; "Lifetime Living"

film

a

Associate Members American Stock Exchange

articles

Digest";
"Good
"Redbook"; "U.
and others.

INVESTMENT

of

'as "Forbes"; "Readers'

Inc.

New York

Stock

Exchange

Companies.

Frequent informative
releases are being sent out

press

regularly to all daily

25,000

PHILADELPHIA

SAN FRANCISCO

LOS ANGELES

LUGANO

(SWITZERLAND^

newspapers

in U. S. cities of

NEW YORK

over

pop¬

ulation and to many

other selected
weekly and suburban papers, and
all major financial magazines.
A

booklet

Easy"

and Q)ea/ei±

"Investing
Made
published in March,

was

1955.

A large demand has resulted

in three separate printings of over

125,000 copies. As a result of wide¬
distribution of this book¬

★

spread

CORPORATE AND MUNICIPAL SECURITIES

let,

45

cities

have

script
★

I

built

DEPARTMENT

asked

for

the

around

stations

special

stations

script

companies

booklet, and

have

asked

suitable

MONEY

25

in

5-minute

a

investment

on

radio

UNLISTED TRADING

television

56

for

for

a

their

GARVIN, BANTEL & CO.

use.

MEMBERS NEW YORK STOCK EXCHANGE

The

t

mittee

Lee

Information

Com¬

MEMBERS

Higginson Corporation

Education,

along

NASD

the

This
YORK

BOSTON

very

CHICAGO

in

ers

American Stock

Exchange




an

and

Exchange (Associate)
Midwest Stock Exchange

with

Stock

the IBA,
Exchanges.

committee
is
continuing a
detailed shareholder survey

STOCK

EXCHANGE

COLLATERAL LOANS

SERVICING BANKS, BROKERS
120

effort to find out pertinent

information

MEMBERS

AMERICAN

is

continuing its partici¬
pation in the Joint Committee on

NEW

Boston Stock

Public

about

of investment

committee also

the

sharehold¬

companies.

has

co¬

operate with the New York Stock
investors

in

all

types of

BROADWAY

NEW YORK 5

This

agreed to

Exchange in its efforts to

& DEALERS

survey

common

TELEPHONE
BARCLAY

7-6440

TELETYPE
NY 1-17

.

.

The Commercial and Financial Chronicle

.

(2582)

:

from page 51

market

the

of

as

certainly

business

utility

tinue to be very

.

the

in
offerings
through subscription at the ex¬
pense of both public and private
three

Utility

of

means.

any

over

a

of time

period

buyers are interested
despite prevailing low
current returns, feeling that these
may be higher at some later date.
Turning to the financing records
of the recent months we find that
so

many

in

them

although

compiled by Ebasco Services, Inc.
are

period in the preceding
year, the bulk of this loss was in
refundings which dropped $428,-

that

over

000,000.

off

touched

be

ginning cf the
stalled

kets alertly and are

capacity

quick to take

was

tunities

watts

capital

at

more

advantageous prices.
Total

all

new

offerings

of

offerings
gain of
13.8%

to

bond

registered

a

than $57,00^0,000

or

actually

more

the

counteract
and

stock

common

preferred

decline

stock

fi¬

year,

in¬

generating

of

$2,467,447

$2,505,133

—

$2,764,333

$3,212,732

—$448,454

Financing

(OCO's omitted)

give

673,563

More
sold

continues

power

52,643
156,64 3

Negctiat.d Sales
No Underwriting

—

is

and

there

that

electric

40,-

were

customers

171,371

tributes

sales

higher

to

other

new

u

: yi:'

/■.

Gas & Pipe

capacities

Independent Tel. Systems—
*Gross plant

the

of

the

electric

and

hot

water

this

the

and

gas

domestic

the

for

at the volume which has been
prevailing.
A large amount of
money must be raised in the
months ahead but some companies
new

in this regard
One
important difference is tnat be-

com¬

report less pressure

cooking

companies are at a
little disadvantage in that they do
not have in the gas field strong
and aggressive manufacturers cf
equipment and appliances such as

•

York

Cifv

not have

favor of gas

Tucker, Anthony & Co.

Sachs

&

generated in many companies at a

The

much

rapid rate than pre-

more

Accordingly, some com-

viously.

panies feel that their trips to the
market may become a lit-

money

Neverthe-.

tie less
Our
been

frequent.

report

on

up

question

may

whether

there

at

Co.

a

more

alert gas

high rate and

panies clean
orders, they
active

these

as

tive

com¬

up

undertaking more

promotion

on

and

different

of

to

types
either

get

installations

of ' equipment
an

.

installation

of

for

power

new

charge

the

or

confused pattern. Though authorsome sort is vested in pub-

iiy cf

lie service commissions in all but
two ef the states, it differs widely
in the several jurisdictions.: It
may encompass a

ers

variety of
up

n-oet important, in 42 states, it in-

eludes the
rates to

the

power

to regulate the

consumers

ar.d the rate-

of-return to investors.
this

fundamental

statutory

stipulation is

rate base is generally left to the

commission with no more limita-

tion than that "a fair return on
the fair value shall be allowed,"
Though and the basis varies from "original

to tax is the power to de-

power

do

to

much more so is

regulate?

not quarrel with the con-

cost" to "reproduction cost," from

monopolies, we

"fair value" to "prudent invest-

IN

Underwriters

Securities

Investment
Retail Distribution

♦

Public
MARINE

TRUST BUILDING,

BUFFALO

3

2

Telephone: WAshington 4035
Bell

Teletype BU 145

Direct

wire to

Distributors

and
of

SECURITIES
Complete Trading Facilities

WALL STREET,

NEW YORK 5

,

Rochester, N. Y. • Norwich, N. Y.

Railroad

Utility

Municipal

Industrial

l

Telephone: BEekman 3-7022

•

_

SCIIOELLKOPF, MUTTON & POME ROY, INC.

Pershing & Co., New York

63

Wall Street, New

70

York 5

Niagara Street, Buffalo 2

BOtcling Green 9-2070




»

ASSOCIATE

MEMBERS

AMERICAN STOCK EXCHANGE

j=

Washington 8060

Teletype NY 1-2827
M EMBERS NEW YORK STOCK EXCHANGE

the

rarely

the

friendly

trends.. If

cept of controlling

UNLISTED

Even in

matter,

BROKERS AND DEALERS

LISTED and

pow-

standards of

safety and service to controlling
the issuance of securities, but

must re-

We

from setting

is necessary to be alert to

we

indication of busi-

of investment funds into the utilities, they affect the growth of the
whole community and become,
therefore, the concern of all of us.
Utility
legulation follows a

more than that "rates shall be just

rate differential is asked.
every

ice. To the extent that restrictive
policies act to curtail the free flow

and reasonable." Determination of

With

a

;

f

basis

or

stroy, then how

which

172
210
194

always

favorable
it

123

3,709
3,650
610*

t h a t an enlightened regulatory
climate must prevail if the public
utility industry is to attract the
capital needed to meet the insistent demand for greater serv-

is anything nega-

watch .regulatory

types of service and also are seek¬

ing

a

9,923

nevertheless believe it is obvious

raised

be

port that regulation is not

their backlogs of

are

note and

well

about.

talk

to

.

to this point h?s

cheerful

a

Telephone installations continue

Direct private wires to
Goldman,

greatly and internal cash is being

which is exploited by
distributors. ;

the

21 Pine St. at Main, Lockport, N. Y.

similar help.

de-

last few years,

the

preciation charges have increased

less, in many instarces there is
an
operating cost different'al in

Wires

70 Niagara St., Buffi In 2 N Y
70 Niagara St
Buffalo 2, N. Y.

in

added

equipment manufacturers
make a big contribution
toward
sales by their national advertising
programs and the gas people do

buffalo 2, n. y.
Netv

Branches

of the volume of new plant

cause

electric

STOCK EXCHANGE

liberty bank building

in the electric f eld.

they have been feeling.

tnan

In

load.

plant

up

gas

heating

increasing in the various diof the utility field, it is

construction
must also continue at a high level,
This
raises
the
question
ef
whether financing will also held

be¬

country

92
114

investment.

visions

that

37

10,050
11,330
1,793*

Bell System

44

19,977

22,132

Line—,

23,142

43,153
22,446
6,139
2,859
(in millions of $)

—

Gas & Pipe

obvious

%

27,460

Electric Utilities

ness

Increase

1 Ml

4+653

——

Line—

Independent Tel. Systems—
Net Property Investment:

industrial and other uses

parts

a reflection
Electric and gas utilities showed

(in thousands)
Utilities

Electric

gas

tween

Established 1919

Telephone & Telegraph C).

Customers:

off-

many

DOOLITTLE & CO.

121,334

%\in this category durir.g the period.

Is At Dec. 31—

in¬

are

—$448,454

Bell System

are

pipeline

there

$3,212,792

+

in sales by subscription net underwritten is

1)54

gas

panies

+$650,163

by one

equ'pment

during the warm months.
There is brisk competition in

+-

$430,923
315,874

TABLE II

of the business.

increase

INVESTMENT SECURITIES

NEW YORK

deil.ne of

this

service which cannot be cared for

of

large increase

The

financing by Aire Mean

cf

con¬

in

Financing

Total
NOTE:

category because installation of
air-conditioning, modern lighting

for

71,932
51,C69
671,031

$1,051,093
437,2.3

__

Private Sales

as

a

The

—

+
+ +

constant urge to make

a

tween commercial customers

con¬

299,194

$2,764 338

Total Subscription

ekrery possible use of labor-savir g
machinery. Competition
as
be¬

or

—

124,580
104,977

812,402

Competitive Eidi'ing

be

to

customers

industrial

to

there

•'

—$920,762

Subscription:

impetus

tremendous

a

374,663

-

$1,822,427

of electricity.

sales

to

$37,692

'

$901,665

Negotiated Sales.

electric

the

UNDERWRITERS and DISTRIBUTORS

MEMBERS

67,238

Competitive Bidding

if installa¬
widespread,

alone,

become

ever

creased. The need for finding

^

+

—

Segregated by Type

peak loads to balance the heating
business has led to campaigns to

'-'X ; ■

473,233

Total New Money___

extreme.

not

are

item

one

until

■

24,960
69,970

Total

business continues to
nected. This shows an increase of expand
and this is particularly..
Irue as to the space-heating busi¬
105%
in
capacity and 44% in
ness in parts of t' e country where
customers since the end of World
gas is not only the most desirable
War II. Net property investment
fuel from an operating standpoint
during these nine years similarly but also a cheap fuel. In many
increased 123% to $22,132 million areas there is a long waiting list
of applications for space-heating
and
electric revenues last year

types showed little change at

$2,467,447,000 and

current

be¬

the

at

name-plate

653,000

money

to point out

'! '

—

217,611

time.

winters

where

will

1,777,193

—

Common Stock

industry enterprise makes it almost neces¬
reported at 102,520,000 kilo¬ sary that competitors take similar
steps in order to hold their share

advantage of any possible oppor¬

get

that

note

to

utility companies watch the mar¬

to

and reassurance.

necessary

'

-

1,802,153
2.6,981
416,090

Stock

Preferred

being developed from
Progress is being
made
toward
popularization of
the heat pump, especially in the
southern
part
cf
the
country

tions

'

are

to

This

'

the

pliances
time

Change

'—$428,172
—
17,410
.

Long-Term Debt-,

average

per

In

ing.

■

I

customer is also grow¬
domestic field there
are
many
appliances which are
large consumers of power which
still have relatively low satura¬
tions.
New
and
attractive
ap¬
usage

the

interest

the

as

scarcely

capital requirements necessity
for expanding operations. It is of

again in some substantial amount
a new
wave cf refundings would

probably

for

the

decline

rates

interest

»

speak

can

dynamic growth of the
public utility industry persists and
with it the challenge to invest¬
ment bankers to continue meeting

similar

Should

we

the

that

and

I!I5I

$653,144
43,503

New Money:

—

It is

1955

markets

the

wit'i enthusiasm

the

of

of the

question

the

securities,

utility

first

the

in

14%

or

months

nine

table I.

in

from

distinct

utility security offerings declined

$448,454,000

snown

Discussing

cutlook for the utility business as

public

of

amount

the

categories

sales, and both negotiated and
competitive bidding sales in 1955
were
only one-half the total of
such sales in 1954. The figures as

higher

and

earnings

higher

dividends

increase

Total Divestxents

number of customers continues to

An interesting develop¬
during the period has been
substantial
increase
in all

Sept. 30

$229,972
66,91 J

Total Refundings

trends will con¬
favorable. In the
we find that the

ment

common
stocks have appeal because of the
fact
that
they
hold
promise
by

Jan. 1 to

that

appear

nancing.

whole.

a

I

to Purpose

as

195»

would

It

V

v

(COO's omitted)

II.

electric industry

However, we may not necessarily
have
seen
the minimum
levels

Segregated

ported good growth during the
period. Details are shown in table

Utilities Committee

-

TABLE

gas

telephone industries also re¬

and

Report of IBA Public
trend

The

1945.

above

107%

were

Continued

in

Number 5490

182

Volume
58

Teletype BU 122
Private

Wire

Between

Offices

/ U'.

UflOtl

t,

.

Volume 182

ment"

,,
...

The Commercial and Financial Chronicle

mittee advised

In the

past five years,
commissions and

service

221 utility rate cases.

in

field.

the courts have rendered decisions
on

as

developments

"consideration of all the

or

elements."

public

l

Number 5490

its

exert

maintenance

the

ducive

hearings, and the

ar¬
fairness of the regu¬

or

lations

of primary importance

are

ih ' determining
mate

is

relative

In

to

the

expand

keep
Committee

it

PUBLIC

earnestly

consideration

to

vestor

factors and cost-of-capital in de¬
He

weight
to

has

current

been

recently

stock

common

We

substantial

that

notes

is

and

given
capital

the

of

bringing to

the

Association

attention

in

"
-

of the '

developed from price-earn¬
ings and price-dividend ratios and

cost of flotation studies.

been

ing

of

number

decided

have

cases

position

of investors may have
adversely affected and
where expressions of protest in ;
their behalf might be helpful.

A grow¬

been

the basis of calculated

on

earnings needed to sustain exist¬
ing
vide

capital
for

structures

and

that

going

money

new

The other matter of

pro¬

at

this

trend

of

trends

concern

toward

is

mittee

rates.

If

believes

the

that

gage

Invest¬

ment Bankers Association is

fully

justified in bringing its influence
to bear upon the development and
administration of regulatory law
Through
others

its

own

that

a

the

that

we

and
it is hoped
with utility

such

feel

detailed

I.B.A.,
liaison

close

of the

some

necessary.

seems

of

appropriations
for
public
power
projects.
So
much
has
been
spoken and written about

members

it

wherever

ued

individual

discussion

matters

situations

need to go

no

as

here

into

about

Dixon-Yates

the

securities

Charles

R.

Partners

Clarence

are

A.

Leyine

and

Sidney Spector. Mr. Levine
was previously with A. W. Benkert & Co., Inc. and J. E. Call
&

Co.

Harry Pon Adds
(Special to The Financial'Chronicle)

Whiteside, West & WinInc.,
24
Federal
Street,
of

the

Boston

A Z U S

Thornhill

Stock

,

staff

.

of

Calif.

A,
has

—

been

Harry

Pon,

to

711

would

ice

nents of

thorough airings. We
certainly say that propo¬
public power seem to push

North

Joins

CHICAGO, 111. —Investment
Chicago will hold their

Bailey Staff

(Special to The Financial Chronicle)

Women of

Annual Christmas Festival at the

Laurence M. Marks &

Co.

.

William M. Cahn, Jr.

Henry Herrman & Co.
New York

Richard W. Clarke

W.

Clarke

Corpora¬

tion, New York
Edward J. Costigan

UNDERWRITERS,
CORPORATE

DISTRIBUTORS

Edward D. Jones & Co.

AND

St. Louis

MUNICIPAL

and DEALERS

Warren II. Crowell

Crowell, Weedon & Co.
Angeles

SECURITIES

Los

Carl H. Doerge

Wm. J. Mericka &

Co., Inc.

EMANUEL, DEETJEN & CO.

Cleveland

TTT

7

NEW YORK STOCK EXCHANGE

.

E. Richard Drummond

MIDWEST STOCK EXCHANGE

Pierce, White and Drummond,
Inc., Bangor

120

Broadway

•

•

•

AMERICAN STOCK EXCHANGE
COMMODITY EXCHANGE, INC.

New York 5, N. Y.

R. Winfield Ellis

Telephone DIgby 9-0777

Blunt Ellis & Simmons

Teletype NY 1-1973

Chicago
Titus W. Fowler

Lynch, Pierce, Fenner
Beane, New York

Edwin B. Horner

Scott, Horner & Mason, Inc.
Lynchburg

At Tour Service

...

Johnson, Lane, Space & Co.,
Inc., Savannah
Hudson

B.

Lemkau

Morgan Stanley & Co.

ESTABLISHED

Singer, Bean & Mackie, Inc.

New York
Milton F. Lewis

40

Ira Haupt & Co.
New York

1927

Wallace M.

New York 5

Exchange Place

HAnover 2-0270

NY

1-1825 & 1-4844

McCurdy

Thayer, Baker
Philadelphia •

INVESTMENT SECURITIES

Co.

&

FIRM TRADING MARKETS

George L. Perin
The First Boston

IN OVER 300 STOCKS

Corporation

New York

64

WALL STREET

NEVV YORK

Boston

Troy

William C. Porter
Dittmar & Company
San Antonio

Direct JFires

Fewel & Co., Los

Albert E. Schwabacher, Jr.
Schwabacher & Co.

Scranton

Allentown

to

Angeles

Reynolds & Co., Philadelphia
Arthur M.

San Francisco

Harrisburg

Krensky & Co., Inc., Chicago

G. Edward Slezak
Loewi & Co.

Milwaukee

James. C. Wheat, Jr.
J. C. Wheat & Co.

Richmond

{titirif"* Swwfwt

Carlton

Cyifuyvotlon

Established 1928

Wilson

P.

Robert

W.

Baird

&

Co., In¬

We

Offer

a

corporated, Milwaukee

COMPREHENSIVE INVESTMENT

Two With

AND

King Merritt

(Special to The Financial Chronicle)

Underwriters and Distributors

.

DEALER

.

SPRINGFIELD, Mo.—Mrs. Mil¬
dred

of

A.

Kneale

King

INVESTMENT SECURITIES

Drane

Curtiss

Company,
Building.

SERVICE
in

T.

with

Inc.,

now

Merritt

Woodruff

and

affiliated

are

&

ALL CLASSES OF BONDS AND STOCKS
including

PUBLIC UTILITY—RAILROAD—INDUSTRIAL

Joins

FOREIGN ISSUES

Saunders, Stiver

(Special to The Financial Chronicle)

CLEVELAND,
Hamilton

has

Ohio —John W.

We Are Particularly Adapted to Service
With Retail Distribution

Firms

joined the staff of

Your

Saunders, Stiver & Co., Terminal
Building, members of the
Midwest Stock Exchange.

Inquiries Solicited

Tower

Clmaucari

CoAjimailan

DENVILLE,
BOSTON

PHILADELPHIA




HARTFORD

P. F. FOX & CO.

Form Inv. Shares Co.

NEW YORK

CHICAGO

N.

J. —Allan

S.

Warden is engaging in a securities
business from offices at 17 Morris
Avenue

under

the

name

vestors Shares Company.

of

•

t

BAKERSFIELD, Calif.—George
Chicago Bar Association, 29 South B. Peck has joined the - staff of
La Salle Street, on
Wednesday, Bailey & Company, 1722 Chester
Dec. 14, 1955, at 5:30 p.m.
Avenue.

Thomas M. Johnson

R. H. Johnson & Co

the

Azusa Avenue.

Chicago Inv. Women Party

Carl C. Brown

&

had

R.

Howard

added

Merrill

managements will be established
some sort of a reporting serv¬

the Com¬

a

are

Exchange.

Hallgarten & Co., New York

Canyon and other matters which

and

keep

formed

Company

Elwood D. Boynton

project, the development of Hells
have

organized to

a -

,

members

Theodore Birr, Jr.

Richard

power

per¬

slow

Co., New York

First California

in

engage
Officers

With Chace, Whiteside

Chace,

Clarence W. Bartow

.

public.

projects. People who en¬
in any form of private en- '
sists, the expert opinion of invest¬
terprise and, more especially, peo¬
ment bankers should be sought by
ple in the investment banking
the authorities.
business would do well to keep
Inasmuch as our fraternity must posted on the public power prob- '
consider the regulatory climate in lem and lose no opportunity to
fulfilling the function of raising stress to members of Congress and
capital for the pressing needs of. others, the unfairness and the
the
utility industry, your com¬ questionable economics of contin¬
market

Levine Company has been

BOSTON, Mass. — George D.
Ryan has become associated with

York

New York

Committee any spots in which the

costs

been

(Special to The Financial Chronicle)

San Francisco

we

bespeak the cooperation of all

members

New

to

business.

•

Eastman, Dillon & Co.

H.
«

UTILITIES

COMMITTEE

,/

Drexel &

hope to do more *
along this line in the year ahead.

termining allowable rates of re¬
turn.

connection- it

that

possible to make representations of the position of the in¬

whole.

a

Tlarold H. Young, Chairman

Chair¬

often

market

money

In

man.

the

to

as

Respectfully submitted,

regu¬

their

information

support the private in¬

enterprise

up-to-

thur

Co., the com¬
piler discerns a trend on the part
of the authorities to give more

has

Yoken, President and Treasurer;
Fay Fisher, and Sylvia C. Yoken.

members who may have an iriter- est or connection in the utility in- *

&

Corporation

to, engage in a securities business*

dustry and urges that they de- "
velop the habit of communicating *

Anderson

curities

Street,

,

study prepared by

time and

Spector, Levine Opens
WASHINGTON, D. C.—Spectof,

utility industry as one of
the first lines of defense for pri¬

in

the public accounting firm of Ar¬

a

same

Form Atlantic Sees.
BOSTON, Mass. —Atlantic Se¬

with offices at 1700 K Street, N.W*

to

vestor

con¬

investment

study and
your

fanat¬

formed with offices at 80 Federal

effort

solicits the assistance of all I.B.A.

*

recent

do well to take the

the

conditions

of

capital

order

date,

or

stagnation of the utilities

concerned.

In

growth

and

toward

utility industry.

latory

whether the cli¬

favorable

for

to

with religious,

cause

ical fervor and that people iden¬
tified with private enterprises will

5£

vate

influence

cedures and

their

regulatory
the Asso¬

this manner,
can
become vocative

terpretative custom of the agency
in each of its findings, the pro¬

bitrariness

the

In

ciation

The in¬

to all important

(2583)

In¬

120 BROADWAY,

NEW YORK 5, N. Y.
Teletypes

Telephone

REctor 2-7760

-

NY 1-944 & NY 1-945

60

The Commercial and Financial Chronicle

(2584)

Continued

from

State), and the Quebec the Canadian investment industry the reasons which has enabled
Bersimis River project -to retain their interest is one of Canadians to finance 85% of the
with an ultimate capacity of 1.2
million h.p.
Long term plans for SALES OF NEW CANADIAN GOVERNMENT, MUNICIPAL AND
CORPORATION BONDS DURING THE FIRST
two additional giant developments
involve the Hamilton River in La¬
10 MONTHS OF 1955 AND 1954
;
Hydro's

Report of IBA
Canadian Committee

the Atlin Lake-Taku

and

brador

River' project

irt northern British

Columbia and the Yukon.

gas
at

reserves

Plans

vanced

to

reservoir

pipelines,

Alberta

the
end of the war and by the end of
1958 will be 30 times as great. He
will be 8 times what it was at

Van¬

to

and the U. S. border where

will

line

of Ontario

of
Canada in that

uranium output in

southern

from

major industrial
and Quebec.

the

to

that the gross value

estimates

other, the 2,200 mile

states and the

Alberta

northwestern

the

serve

Trans-Canada

areas

Bennett, President of

well ad¬

now

are

River district of
couver

W. J.

Mr.

Ontario.

and

chewan

Atomic En¬
utilize this vast new ergy of Canada Limited, a Crown
states
that uranium
by
constructing
two Company,
one
from the Peace production by the end of this year

ligible.

it

cubic

Prior to 1947 they were neg¬

feet.

and

development of large deposits of
uranium ores in northern Saskat¬

es¬

now

are

trillion

15

over

discovery

the

to

due

nium

of large natural gas fields.

covery

Natural
timated

Thursday, December 15,1955

.

New York

50

page

..

Power

Water

oping

4 million h.p.
to these major de¬

over

,

„

addition

In

velopments expansion
has also
taken place in other areas of eco¬
nomic

activity.

nickel

1954

From

1946

of

Government

of

60%; gold by 54%; pulp by 46%;

44%;

by

ingot

steel

by
In addi¬

38% and cement by 95%.

construction

motor vehicle

contracts
by 224%,
shipments by 108%,

Provincial

165,695,000 .1

161.816,000

guaranteed

\

200.000,000 j
j
204,032,000

185,349,000

Municipal

223,945,906

458,802,500

517,744,500

$5,234,913,406

'{

189,362,316

Corporation

$6,646,833,816

Short-term

financing

(less

than

1

3,510,500,000

the

Of

been

the

above,
sold

in

following

3,420,000,000

$1,724,413,406

Less:

$3,226,833,816

year)

■

,

!

have

amounts

York:

New

62,800,000

Provincial

Provincial

6.300,000

guaranteed

Municipal

40,113,000

25.728,000

Corporation

27,450,000

78.020,000

$67,563,000

$172,848,000

116% and labor in¬

tion,

increased

awarded

$5,370,000,000

—

Provincial

by 67%; copper by 64%; zinc by
lumber

guaranteed—,

increased

production

.'.1954

$4,205,000,000-

"

Canada,
Canada

to

retail sales b.y

will be about $180 million.

year

Each is

estimated to be capable of devel¬

1955

Government

SOURCE:

by 125%.
Manufacturing

A.

E.

Co.

&

Ames

Limited!!

come

Ore

Iron

Canada is

major iron
its

iron

producer.
production

ore

In 1946
un¬

large

water

Since

1946

was

that

Ontario

northwestern

the

and

on

1954

British Columbia with an ultimate

capacity of 2.4 million h.p., Onta¬
rio
Hydro's plant at Queenston

Ontario will result in further

the

within

increases

large

very

with

ultimate

an

million

next few years.

h.p.,

Uranium

Canada will
world's

the

largest producers of

capacity

with

development)

ultimate

of the

one

of

1.5

Lawrence

St.

Seaway

be

soon

capacity

project (part of the

River power

of

2.4

an

million

h.p. (to be shared by Ontario and

ura-

The
The

Bond

war

5.1

47

7.2

650

Mar.

650

301

292

57

Apr.

650

315

287

48

7.4

May

650

310

266

74

11.4

650

256

303

91

14.0

'

325

^

278

:

8.8

July

675

165

361

148

21.9

Aug.

695

134

401

161

23.2

Sept.

715

94

431

190

26.6

Oct

740

161

371

207

28.0

Nov.

760

219

361

180

23.7

Dec.

780

168

360

252

32.3

1955—Jan.

810

115

464

231
268

31.5
32.6

850

149

433

Mar.

890

165

435

290

Apr.

940

221

382

337

May

980

200

424

356

36.3

296

376

348

34.1

276

412

387

34.8

241

4.8

416

38.7

234

363

503

45.7

June

1,020

July

1,055

Aug.

1,075

Sept.

''

stock

and

28.5

Feb.

purchasers have since be¬

1,100
Bank of

SOURCE:

The successful efforts of

buyers.

33

282

335

total

held by others

650

investment

bond

v

Others

Feb.

expanded the potential

regular

come

Banks

Outstanding

Chartered

1954—Jan.

bond-buying public tenfold. Many
of these

Bank of

Canada

June

The broadly publicized
Loan campaigns during

time

Per cent of

HELD BY

Total

Outstanding

End of

brought a similar
expansion to Canada's bond and
stock markets during the postwar
period.
Victory

TREASURY BILLS

(Month-end figures in millions of dollars)

has

program

CANADA

Distribution of Holdings

Market

capital

large

OF

GOVERNMENT

within

part such major developments
Aluminum's Kitimat project in

as

activity was
widened by the establishment of
new industries for the production
of
many
lines
not
previously
made in Canada, including elec¬
tronic equipment, aircraft, petro¬
chemicals, plastics, diesel motors,
chemical
processing equipment,
pipeline
pumping
and
control
equipment, and many others.

These include

the next few years.
in

period.
The
completion of the St. Lawrence
Seaway and certain large scale
development plans in northwest¬
ern

construction

for

planned

above that for the

of 132%

resources.

generating

h.p. Projects having a total ca¬
pacity of more than 3 million h.p.
are
now
under
construction or

300,000 tons and for the first nine
months of 1955 show a further in¬
corresponding

power

installed

capacity has increased 62% from
10.3 million h.p. to 16.7 million

border.
over 7,-

Quebec - Labrador
Shipments in 1954 were

crease

power

time vast
have been developed

Since

new reserves

in

fast becoming a

now

ore

important.

is the mainspring
of today's industrial development.
Canada is fortunate in possessing
Cheap

-

r
•

35.9

Canada Statistical Review.

GOVERNMENT OF CANADA
Statement of Revenue,

Expenditure and Public

Debt

(Millions of Dollars)

A

monthly report

Increase or

-Gross Public Debt—

Surplus
Revenue

March 31

Expenditure

Unmatured

Funded debt

decrease(—)

Less

Other

Deficit (—

Fiscal Years

Liabilities

Total

Net debt

Active assets

In net debt

1947

373.6

16,542.0

1,156.2

17.698.2

4.650.4

13.047.8

—373.6

2,195.6

676.1

15,957.4

4.825.7

12,371,6

—676.1

2,175.9

595.5

15.585.0

1,239.9
1.365.4

17.197.3

2.771.4

16.950.4

5.174.3

11,776.1

—595.5

1950

2,580.1

2,448.6

131.5

15.188.1

1,562.7

16,750.8

5,106.1

11.644.6

1951

Economy

2.634 2

2.871.7

1949

Canadian

3,007.9

19*8

the

on

3.112.5

2.901.2

211.3

15,026.8

1.696.5
2,562 3

16,923.3

5,490.1

11,433.3

—211.3

17,257.7

6.072.4

11,185.3

—248.0

3,108.0
3.347.0

17.918.5

6.756.8

11.161.7

17,923.2

6.807.3

11.115.9

14,695.4

.

.

expansion-minded

are

will want to be

you

.

.

.

.

monthly Business Review—an up-to-the minute brief of Cana¬
economic

dian

U. S. offices

Address

trends.

248.0

4.337.3

23.5

14,810.5*

1954

4,396.3

4,350.5

45.8

14.576.2

4,123.5

4.275.4

any

of

NOTE:

Net

Debt

million

Tn

The

surplus

position.
respect

SOURCES:

For

of

Public

or

deficit

1955
prior

—

the

14,496.4

17,951.5

3.455.1

Budgetary Account is equivalent to a corresponding
Debt reflects a budge ,ary deficit of $151.9
million,
transactions, resulting in an increase of $147.2 million
Canada; Budget Speech and Budget Papers.

on

of

11,263.1

6.688.4

Net

years'

Accounts

151.9

■

our

TO ! SUU0D CANADIANS

Bank

Montreal

of

GBu)

Canada'8 First Bank Coast-to-Coast
New

York

...

(54 Wall

Street

San

Francisco

Chicago: Special Representative's Office, 141

HEAD

OFFICE:

625 Branches Across Canada

.

.

333

.

California

Street

West Jackson Blvd.

MONTREAL

Resources Exceed

•

$2,500,000,000

Greenshields & Co (N.y.) Inc
Specializing in Canadian Government,

Savard

Hart Inc.

&

.

;

Provincial, Municipal and Corporate Securities

Members of The Investment Dealers'
m

Association of Canada

,

230 .Notre
40

SHERBROOKE
'

I

I*

'

Dame

St.

TROIS-RIVIERES

—

r

V

t

<

Savard

Orders

executed
rates

or

on

all

traded

Canadian
in

New

170 Westminster

Telephone: WHitehall 3-9525

Hart

Canadian Affiliate

Exchange

in

at

United

Greenshields & Co Inc
regular
States

commission

Funds.

Business

City, HAnover 2-0575

-

established 1910

System Teletype NY 1-2339

Street, Providence, R. I., DExter 1-1760

Montreal
MONTREAL

Teletype: NY 1-3703

Exchange

Exchanges

York

SOREL

—

Exchange

40 Exchange Place, New York
Bell

QUEBEC

—

&

Toronto Stock

HA 2-0575

-

■

Members: Montreal Stock
Canadian Stock

64 Wall Street

West,' Montreal

Exchange Place, New York

QUEBEC

-

CHICOUTIMI




TROIS-RIVIERES
-

-

ST. JOHNS, P. Q.

SHERBROOKE

Toronto

Quebec

Sherbrooke

—

—

23.5
45.8

147.2

decrease or increase in the
less an adjustment of $4.7
in the Net Debt.

Head Office in Montreal.

our

or

3,732.9

4.360.8

and interested in Canada

the mailing list for the B of M's

on

3,980.9

1953

1355

If you

1952
.

—131.5

Ottawa

Volume 182

Number 5490

.

.

The Commercial and Financial Chronicle

.

postwar expansion. Canada's capital

markets

active

in

1955

have

was

and

have supplied a large
proportion of the funds needed to
finance the expansion of

the

Canadian issues marketed

new

existing

instituted weekly sales of Treas¬
ury Bills to dealers and banks.
This

in

had

the United States for the first 10
months of 1955 was only $67.5
million as compared with
$172.8
million in the same period of 1954.
By midsummer business was es¬

industries and the development of
new

that practically no borrowing
done by Canadian issuers in
U. S. market.
The total of

was

been

resources.

Bond

markets
today
respond
quickly to Central Bank mone¬
tary policy. The Bank of Canada

timated

to

be

this

policy

the

rediscount

when

rate

reduced

was

lYz%.

This

time

hardening
in

reduction

when

and

in

the

rates

at

of

a

ened.

States

Kingdom

had

Bank

England

195487

raising

the

to 41/2%.

rediscount

As

of

of

rate

in

re¬

Canada

long

rates

to

bor¬

cost

policy

1954,

had

the

Canada

the

which

reduction of

in

to

turn

slightly.

$517

premium

of it by

Canadian dollar in relation to the
U.

S.

dollar

from

January to
A

zero

further

about

in

result

3V2%

late
of

Until

October.

this

true

45%,

is

held

now

from

by

11.4%

Further broadening

financing

these

to

be

is

down

and

to

$458

capital

securities

whole

United

States

stock

remain

into

pro¬

stock

the

by

market

Toronto

as

Stock

raised

moved from 385.9
to

high

a

As

of

of

Nov.

at 436.8.

15

Jan.

on

455.9
the

3, 1955

Sept.

on

23.

stood

average

This movement reflected

the

market.

lowed

very

year

closely

and fol¬

the

course

,

.

swings

major

diverge

may

,

,

0

for a short Perlod- The September
Continued, on page 62
1954

vs.

1954

% Chge.

1955

1

Newsprint

100)^

Pulp

production

246.7

$69.8

1st

9 Mos.

4,435,983

4,590,118

+

3.5

1st

9 Mos.

7,000,492

7,328,822

+

4.7

1st

7 Mos.

4,247,700

4,784,300

+12.6

1st 10 Mos.

2,562,383

August

production

Lumber

(tons)—_

(tons).

production (M. bd. ft.)___

+ 9.4

Steel:
.

Steel ingot
Motor

production

vehicles

(tons)_;

shipments

(units)

1st

9 Mos.

]

/.

.

3,620,481

+41.3

370,279

+23.1

300,706

Building:

;

Cement production
Construction

Dwelling

(bbls.)

units

7 Mos.

13,126,616

13,928,624

1st

9 Mos.

$1,572,516,800

$2,267,023,900

+44.2

(units)

started

1st

awarded..

contracts

1st

9 Mos.

84,327

102,627

+21.7

+

6.1

Gas:

Crude petroleum production

(bbls.)

1st

7 Mos.

51,384,343

69,245,284

+34.8

Oil

(bbls.)

1st

8 Mos.

105,656,052

136,080.176

+28.8

ft.)

1st

7 Mos.

71,245,531

82,442,121

+15.7

1st

9 Mos.

4,988,633

11,611,717

+132.8

1st

8 Mos.

9,099,336

8,567,238

1st

8 Mos.

104,329

118,059

+13.2

1st

8 Mos.

197,670

211,046

+

1st

8 Mos.

239,062

280,416

+17.3

pipe

line

Natural

net

deliveries

production (M.

gas

cu.

Mining:
Iron

shipments

ore

production

Nickel

production

Copper

production

cash

1st

8 Mos.

147,164

138,884

oz.)___

1st

8 Mos,

2,843,991

.2,985,717

1st

6 Mos.

$1,060,700,000

1st

7 Mos.

$6,819,000,000

1st

7 Mos.

39,286,000

1st 10 Mos.

3,049,754

_

...

Output

Revenue

Total

Trade:

.

income.^

income

Energy

Carloadings

—__

(tons)
(fine

Farm

Labor

(tons)

„

(tons)..

production

Agriculture:

Retail

(tons)...

production

production

Labor:

(tons)

(tons)

(kwh.)_____

Freight
Retail

(cars)

Sales—

1st

—

5.8

6.8

—

5.6

+

5.0

$1,030,800,000

—

2.8

$7,087,000,000

+

3.9

44,151,000

+12.4

3,395,816

+11.3

«•

8 Mos.

$7,725,074,000

Savings deposits in Canada

At Sept. 30

$5,585,000,000

$6,333,000,000

+13.4

Current

End of Sep.

$3,770,000,000

$4,139,000,000

+

9.8

End of Sep.

$1,585,300,000

$1,666,100,000

+

5.1

Chartered

loans

in

SOURCE:

print

$8,145,175,000

+

5.4

Banks:

in

Canada

circulation

high level of business prevail¬

ing in Canada this

the

trends

Pulp & Paper:

Notes

no

parallel

in

the

,

,

Canadian

usually

other

though

Period

Electric

Exchange Industrial Averages

each

Canadian Business: 1955

Gold

Stock Market

Canadian

measured

States

Index of Industrial Production:
(1935-1939

Zinc

economy.

The

rights to shareholders.

money

idle

to the benefit of the

uses

the

and

market

Lead

cor¬

June, 1954 Canada had

increasing part

ever

channelling funds which might

ductive

United

The two economies

closely allied that both the

so

Coal

million.

was

expected

anticipated

short-term

an

Municipal borrowing has

short /date

is

confidently

otherwise

At that time the Bank of Canada

policy

Dominion Bureau of Statistics; Bank of Canada Statistical

Association

of

Canada

Monthly

Report;

Canadian

Pulp

and

Summary; News¬

Paper

Association

Monthly Report.

CANADA'S FOREIGN TRADE

(Excluding gold)
(Millions of dollars)
ExportsTo U. S. A.

Amount

?

-Imports-

To U. K.

%

Amount

:

To

%

From U. S. A.

Others

1,056.6

37.6

753.7

26.8

1,522.2

48.9

688.7

22.1

1949__

1,524.0

50.4

709.3

1950-

2,050.5

64.9

472.5

1951_

2,333.9

58.9

635.7

1952

2.349.0

53.9

1953—

2.463.1

59.0

2,367.4

Total

Amount

From U. K.

%

From

Total Imports
Total

Others

"/

Amount

&

Exports

mos.

1.001.5

2.811.8

1.974.7

76.7

899.1

3.110.0

1.805.8

63.5

23.5

739.1

3,022.4

1.951.9

70.7

307.4

11.1

501.9

2,761.2

15.0

634.1

3.157.1

2.130.5

67.1

404.2

12.7

639.5

3,174.2

6.331.3

16.0

993.8

3,963.4

2,812.9

68.9

421.0

10.3

850.9*

4,084.8

8.018.2

751.0

17.2

1,256.0

4,356.0

2,977.0

73.9

359.8

8.9

693.7

4,030.5

8,386.5

668.9

16.0

1.040.6

4,172.6

3.221.2

73.5

453.4

10.3

708.2

4,382.8

8.555.4

60.0

658.3

16.7

921.2

3.946.9

2.961.3

72.3

392.5

9.6

739.4

4,093.2

8,040.1

1.339.8

60.9

342.9

15.6

517.7

2,200.4

1,743.3

72.9

239.1

10.0

409.0

2,391.4

4.591.8

1.430.9

1954,7

59.1

450.3

18.6

539.C

2.420.2

1.923.6

74.5

216.4

8.4

442.1

2,532.1

5.002.3

,

BALANCE

189.4

7.4

409.8

2,573.9

5.385.7

299.5

-

11.4

531.6

2,636.9

5,743.9,

BELL, GOUINLOCK & COMPANY

5,783.6

*

LIMITID

ESTABLISHED

25 KING STREET

1920

WEST, TORONTO

OF TRADE
«

(Millions of dollars)

UNDERWRITERS AND DISTRIBUTORS OF

Seven Months

1917

1948

—918.1

—283.6

+ 564.3

+ 389.2

1949

1950

1951

1952

1953

1954

1954

—427.8

—80.0

—479.0

—627.9

—758.2

—594.0

—403.6

—492.7

+ 401.8

+ 68.3

+ 214.7

+ 391.3

+ 215.5

+ 265.8

+ 103.8

+ 233.9

5.5

+ 142.8

+ 562.1

+ 332.5

+ 181.9

+ 108.9

—17.2

—121.5

+ 325.5

—210.2

—146.3

—190.9

With

U.

S.

With

U.

Kingdom—

With

Others

+591.6

+ 367.5

+ 287.2

Countries

+237.8

+473.1

+261.2

All

Provincial

in

Treasury Bill Market

in

Bills

increased

market

will play

than in the preceding year, much

the

on

that

almost entirely
in the amount of

purposes.

equity

a

responsible for the

the

has

it

and

is due

million

More

in

Treasury

others

poration bond issues dropped from

into

was

ing

mid-

compared with

increased by about 15%

in

slow

inflow

as

reduction

a

are

Oil &

government

to

recession

operated

This

almost

by about 70%.
percentage of total outstand¬

this

of

increased

increased

over

funding

same,

experienced

capital

measure

the

The

Government of Canada issues for

of

business

have

on

of

to

borrow¬

middle

mild

been

also

and

down

large

assisted

from

recover

which

the

approximate!^

August
This

by

was

by

have

to

1954.

% to 1% higher than

the

an

sevenfold; from $74 million in
May, 1954 to $503 million in Sep¬
tember, 1955.
During the same
time
outstanding Treasury Bills

hard¬

yields

3.10%

volume

been about

corresponding U. S.

have

banks

Canadian

total

erable decrease

the

rais¬

Government,

rowing cost which in January had

ing

and

ago

provincial, munici¬
pal and corporation bond financ¬
ing for 1955 will show a consid¬

The

there

term

year

its policy by

example,

mid-April

by

—

October.

result the Govern¬

a

means

with

Bank of Canada and the chartered

a

For

of

providing
opportunity to
profitably employ temporary cash
balances. During this time hold¬
ings of Government of Canada

Government of Canada long-term
bonds have increased from 2.81%

inflation

United
the

of

reversed

Consequently

were

United

threats

to

in

sulted

ment

2%

came

interest

renewed

the

from

in

a

now

in which to prove

year

as

investors

ing the rediscount rate in early
August to 2%. A further increase
to 2V4%
was
made' on Oct.
12.

intensified

February

over a

its value

has

pursued

stock market.

Treasury Bills by others than the

and

ahead

development

the

9%

bank

new

operating at about

pursued an
easy
money
policy
throughout the latter part of 1954

61

(2585)

Source:

A

Dominion

Bureau

of

—

1955

+

CANADIAN

GOVERNMENT, MUNICIPAL

AND CORPORATE SECURITIES

96.9

—161.9

Statistics.

AFFILIATES

BELL, GOUINLOCK & CO.

LEGGAT, BELL, GOUINLOCK

INCORPORATED

.♦>

•

•

.

.

MEMBERS MONTREAL STOCK EXCHANGE

NEW YORK

>

LIMITED

64 WALL STREET

M

MONTREAL

fry'**'

'

% f if#

J00&.
mm-.

$

BONDS

STOCKS

Canadian

Markets maintained in all

classes of Canadian external

Securities

Complete
facilities for

^

and internal bond issues.

Canadian Stock
and Bond

trading.

Stock orders execuled.on the Montreal and Toronto Stock

J
MEMBERS OF:—

Exchanges,

or

net New York markets quoted

on

request.

Toronto Slock

Exchange

Montreal Stock
DIRECT
-

•

'

PRIVATE

WINNIPEG,

WIRES

CALGARY,

TO

TORONTO,

VANCOUVER,

MONTREAL,

AND

-

Exchange

Canadian Stock

'

Exchange

Calgary Stock Exchange

VICTORIA

'

BELL

SYSTEM

TELETYPE

NY

Vancouver Stock

1-702-3

Exchange

Winnipeg Stock Exchange

Winnipeg Grain Exchange

Dominion Securities Gkpokatiqm
Boston

Philadelphia
London, Eng.

CalgaryOttawa




Associate Member American Stock Exchange40

EXCHANGE

PLACE,

NEW

YORK

5

*

Toronto
Montreal

James Richardson t Sons
ESTABLISHED

Telephone WHitehall 4-8161
Canadian Affiliate

—

and Canadian

Member
Stock

Toronto, Montreal

Exchanges

Winnipeg
Vancouver
Halifax

Executive
22

1857

Offices—Winnipeg

Off ices f rom Montreal

to

Victoria

r

€2

The Commercial and Financial Chronicle

(2586)

Continued

jrom

day buys

61

page

in

duplicated

market

deficit

a

covery.

Canada's

of

with

income

about

States.

2Vz%

With

for the

United

15,600,000

million

world

free

to

restrictions

trade

A

substantial decline in world trade

seriously affect the gen¬
prosperity of the country.

Since

World

Canada's

II

War

ment if the capital inflow should

trade

position has become more
closely linked with the United
States

which

Canada's

74.5%

and

exports

59%

for

of

begin to
less

average

of

have
over

run

this

purchased

$650 million

have difficulty

an

not

Canadian

they have sold to the

months

of

the

In

first

consume

way—un¬

U.

S.

is

goods from Can¬
is

as

many

In other

words,

Total

1948

1949

1,703 2,489 3,175

3,502

than heretofore,
nevertheless agriculture still con¬
tributes a larger share of Canada's
industry

318

454

707

804

913

1,040

976

5,308

1,617 2,471)

2,857

3,048

3,108

3,733

4,372

4,801

4,531

30,586

90.0

87.0

81.5

82.4

82.7

82.2

82.3

85.2

3,564

this

a

lion

net

Adding

Canadian

(Note)

Excludes

Reconstruction
SOURCE:

brings

shipments,

1954

.83

3.07

2.39

.68

3.05

2.46

.59

2.44

.65

2.33

.67

2.97

2.38

.59

2.95

2.45

.59

2.92

2.45

.47

2.96

2.53

.43

2.95

2.52

.43

Jan.

2.99

2.63

.36

Feb.

2.82

2.63

.14

Mar.

2.84|

2.65

Apr.

2.81

2.76

.05

May

2.83

2.73

.15

June

2.87

2.75

.12

July
Aug.
Sept.

2.89

2.84

.05

3.02

2.93

.04

3.08

2.90

.18

OcU

1955

3.01
3.00

Dec.

3.10

2.73

2%.£

(1) Canada
Dec.

15, 1963/68.

due

1967/68.

PRIVATE

TOTAL

GROSS

.32

(2) United

2>/2%

States

AND

PUBLIC

*

,

%
1947

construction--——

machinery

equipment

and

584

—

1,398

Non-Government Outlays—

'

1949

1950

637

742

801

599

443

non-residential

New

1948

505

1946/

.

371

New

due

PRODUCT

NATIONAL

(Millions of Dollars)

■

15,

June

.19

SOURCE: Bank of Canada Statistical Summary.

CANADA'S

BETWEEN

construction——.

residential

Government

.90

2.42

INVESTMENT AND

Outlays—

Non-Government

Total

.93

2.54

3.25

NoV.

t

Canadian

2.63

3.44

Domestic Investment—

Public

and

3.53

Oct.

•

Private

Yield Spread

'

Sept.

ing problem some lines of Cana¬
dian industry have also had a dif¬
ficult time during recent years.

DOMESTIC

YIELDS

BOND

United States (2)

"

Aug.

wheat market¬

RELATIONSHIP

GOVERNMENT

Canada (1)
"

July

sight.

of

Statistics.

June

only 251 million bushels. No real
solution of this problem appears
a

of

CANADIAN

May

in recent years has
about
312 million
though last year it was

addition to

to International

Bureau

Apr.

averaged

In

subscriptions
Monetary Fund and International Bank
and

banks

Mar.

wheat exports

818

903

1951

1952

1953

1,061

1946-1954

1954

786

1,166

781:.,

1955
Estimate

6,851

1,290

1,026

1,260

1,554

1,706

1,676

9,985

1,836

1,016 '1,230

1,323 * 1,339

1,769

1,916

'-2,073

1,711

13,011

1,733

2,121"

2,968

3,810

4,256

^

4,553 "

>

Outlays*—

■";><

3,578 3,697 3,967 4,127 4,200

companies and

Feb.

of Sept. 1 last
to
about
809
million
bushels.
Canada's
share
of
international

in

insurance

Jan.

to

for export as

to be

of

Development.

'

bal¬

the

and

Dominion

Mid-Month

bushels, after providing for
requirements and Au¬

gust

investments

LONG-TERM

domestic

ance

(at

ends)

of 311 mil¬

carry-over

99.6

long-

by the Government of Canada
for

surplus wheat crop therefore is of'
The fore¬
cast this year is for a crop of about
bushels.

95.0

NOTE:

the utmost importance.

million

_

investments

year

general
prosperity of the
country de¬
pends to a considerable degree
upon the prosperity of the farmer.
The successful marketing of the

498

investment

abroad

the

and

5,507 35,894

by Canadian-

capital

Total

Product than any

National

Total

1954

1953

public

Percentage

Gross

1952

2,685 3,217 3,271

domestic

term

1951

1950

3,815 4,577 5,285 5,841

10

86

owned

agriculture

1947

invest¬

private and

financed

other

CAPITAL

by foreign-owned

postwar period have
made Canada less dependent upon

New

Investment Securities

1946

public

Estimated

ment

the

during

Canadian to-

one

and

investment

capital

15,600,000

as

of American goods.

Canadians do

trade

goods

Less:

wheat surplus.

a

private

domestic

development of natural resources

purchasing

in comprehending

origin

seven

Canada's

1955

marketing of

DOMESTIC

PUBLIC

(Millions of Dollars)
Total

Though the increasing industrial¬
ization of the country and further

why 165 millions of Americans do

more

States than

States.

should

from the United States. Canadians

goods per annum from the United

United

the

time

more

Canada

than

ada

the other

that

at

purchasing

that in the last three years

Canadians

tide

the

the

AND

1946-1954

present time, and one which
is shared by the United States, is

bushels

supplies

Canada

if

cease—worse

of Canada's imports.

Unfortunately
means

takes

now

alone

States

addition to the trade
deficit mentioned above, Canada
now has an obligation to pay in¬
terest and dividends on approxi¬
mately $10 billion of Canadian in¬
vestments held by U. S. citizens.
Obviously this would be difficult
if not impossible of accomplish¬

would
eral

from
the
is postwar

annum

In

years.

and

it.

upon

per

United

industrial
powers.
therefore
vitally interested in any, and all,
eliminate

been able

others,
augmented
substantially
by the inflow of foreign capital
which
has
averaged
over
$400

the
world's
Canada
is

efforts

$10

bridge this gap by using a
relatively small trade surplus
with
the
United
Kingdom and

people
Canada is the world's third larg¬
est
trader
and
in
sixth
place
among

own

to

compared

as

has

Thus far Canada

export

national

who

investors

S.

U.

concern

billion of Canadian investments.

economy

on

million.

matter of grave

to

Trade

is very de¬
markets.
In
recent
years
Canada's
export
trade has represented about 22%
pendent

States

This is
to Ca¬
nadians
and
some
day, if not
rectified, may prove
disastrous

market

has also shared in the recent re¬

Foreign

United

the

with

amounted to $492

Canadian

the

the Canadian

and

PRIVATE

perfectly

be

at the

_

Canadian Committee
was

TOTAL

INVESTMENT FINANCED BY CANADIAN-OWNED

Canada.

from

happy to settle for a l-to-10 ratio.
Canada's major trade problem

Report of IBA
break in the United States market

buy

would

Canadians

ANNUAL

U. S. goods than

more

Americans

13

Thursday, December 15,1955

...

.

2,685

3,216

,

!

-

'

4,840

:

29,847 «-

-4,859

-

-

•-

.

V

:

.

,

-

*

34

31
459

44

500

40

40

23

495

•654

883

875

!

106

103

27

334

42

construction

residential

New

12

293

849

.5,312

93

442

1,001

954

6,047

5,285 * 5,841

-.5,507

37

"

New

machinery

263

construction—

non-residential

New

*■

'

962

r

•

■

'

—L-

and equipment—*—

60

7

—

A. E. Ames & Cu.
>..-«■

Limited

-■

-

■

./r••.-'•■v'

-

\

*

•

>

Government
'

■

*

b

•

305

Outlays.:
1

368

-f 534

430

f

-

Total

UNDERWRITERS AND DISTRIBUTORS

' -:

/

:

;.

'

.

.

Private

'

3,815

4,577

-

1,029

;•

-

Domestic-

Public

and

1,095

i

•

"

'

:

4

'

j

-

A. E. Ames & Co.
Members Toronto and Montreal Stock

599

767

'
'

;

Investment

Gross

——

L—
'•

..('■

•

-1,703

—-

Product—!

National
••

.

Exchanges

TotaL

Private

Public

and

3,175

3,502

13,768 15,613 16,462

12,026

——

2,489

18,203 21,450 23,255 24,449 24,041

35,894

5,954

169,267

-

26,250

.

.

Domestic

*

'

'

*

\

I-

ID-

'".5

'.

:

-

•

'

■

.

'

vestment

OFFICES IN 14 CITIES IN CANADA AND ENGLAND

tional

as

a

per

cent

of

Gross

—'—

Product"

SOURCE:

Dominion

Bureau

of

i

*

New York

-

14.2

18.1

20.3

21.3

...

21.0

21.3'

22.7

Statis tics.

Ilosion

A memo to

banks
brokers
dealersROYAL

SECURITIES

CORPORATION

Limited

Canadian A ffiliate

Business Established

1903

W. C. Pitfield & Co., Limited

Underwriters and Distributors

Public

Toronto

Montreal

Canadian Government, Municipal

Calgary
Halifax

Utility and Industrial Issues

Cornwall
Moncton

Saint John

Edmonton
Ottawa

Vancouver

Victoria

Winnipeg

ROYAL

SECURITIES

COMPANY

Members:
Montreal Stock

Exchange

—

Canadian Stock Exchange

The Toronto Slock

W. C. Pitfield &

Exchange
30 Broad

244
Toronto

Winnipeg

St. James Street
Halifax

Calgary

Edmonton




Quebec

Vancouver

Ottawa

Charlottetown

Hamilton
St. John's, Nild.

#

Co., Inc.

Street, New York 4

Telephone: HAnover 2-9250

West, Montreal 1, Canada

Saint John

23.9

22.9

21.2

"**

22.7

1

v1

BUSINESS ESTABLISHED 1889

'

Na-

A. E. Ames & Co.
Incorporated

96

;

"

Total
'

73

Teletypes: NY 1-1979 NY 1-3975

COAST TO COAST WIRE SERVICE

Vblume 182

Number 5490

The Commercial and Financial Chronicle

.....

'f

9$

(2587)

-

This

W.T.K. Collier

is

particularly true of the
industry, the coal mining
industry, farm
equipment
and

capital goods industries, the
position of which in the Canadian
has

A. E. Ames &

Government

Canadian

industries

their

has

survival

indicated

depends

highly

their

Y

-

Corp.; New York
'

Gairdner and Co., Ltd.

Dominion

v

Toronto

Percy R. Hampton

the

on

Arthur S. Torrey

Bell, Gouinlock & Co., Ltd.

W. C. Pitfield &

Toronto

Montreal

W. II. R. Jarvis

Co., Ltd.

Douglas B. Weldon

McLeod, Young, Weir, Inc.

competitive

Midland Securities Corp. Ltd.

New York

London

conditions.
Conclusion

Continued

from

32

page

Canada's rich store of relatively

untapped

being
than
of

natural

resources

developed

ever

Essential

knowledge,

tech¬

new

her

favorable

political and business climate, her

growing

rapidly

population

keeping the

and

see

Second,

both

the

the Government has

ment

domestic

of

Act

She

will

investor.
not

be

immune

the growing pains and
ments

from

maladjust¬

that accompany rapid ex¬

the

question of budget policy is

in

her

future

will

be

also

so

Respectfully submitted,
CANADIAN

COMMITTEE

J. Ilenry Ratcliffe,

Chairman

Ashplant,

voted

a

Government

to

try
for

to
its

resisting that kind of
from whatever source,

pressure,

consistent

axe

general philosophy, to
goals still unacnieved in

our

the

fields

health;
which

of

education
and
working out ways in
give reality to our

in
we

.

that

here

And

Stanley E. Nixon, Vice-Ch'man

Corp.,

Ltd., Montreal

I1

in the interests of all

and

also

by

Government

that

Mills, Spence & Co., Ltd.
Toronto

if

for,

that

a

favorable

private

of tax
of research

support

out

kind
negligently
tardily provided

were

be

not to

tax

concerns,

amount of

proper

1'or the

would

vided

be

pro¬

for,

forthcom¬

James Richardson & Sons

And

I

think

Government has

Winnipeg

millions

'•

;

of

Americans

upon

who have

savings bank accounts, savings
bonds, building and loan shares^
life

insurance

policies and pen-"
no longer seeing
the President's labors in behalf of the value of their savings shriv-eled by inflation.
General wel¬
peace and prosperity and justice
for all the American people, as a fare or special interests?
(4) Under the Eisenhower Ad-,
conspiracy to serve unnamed
ministration the existing shackles
"special interests." I, for one, am
of direct controls on wages and'
fully prepared to leave the job of
dealing with that sort of bunr prices were promptly thrown off
combe to the intelligence of the in order to release the energies of:
American workers and business¬
straight-thinking families of
men
so that they might achieve •
America.
their best record of production:
Consider, for example, the eco¬
and earnings. General welfare or•
nomic record of the Eisenhower
special interests?
Administration
in
the
nation's
(5) Under the Eisenhower Ad¬
service—in
discharging
its
re¬
ministration the Employment Act
sponsibilities under the Constitu¬
of 1946 has been a cardinal guide
tion to "promote the general wel¬
to
policy making, with special
fare."
emphasis upon the injunction in'
Y; (!)
More
Americans are at
the Act to promote maximum em¬
work
today,
producing
more,
ployment, production and pur¬
earning more, spending more, in¬
chasing power ".
in a manner
vesting more and building more
calculated to foster and promote
than ever before in our history.
free competitive enterprise.
General welfare
or
special in¬
General
welfare or special in¬
some

sion

to stigmatize

rights

are

the Ameri¬

terests?

.

•

(2) Under the Eisenhower Ad¬
working
men
and

ministration
wbmen are

dented

further
an

that

the

obligation in

enjoying the

(6) Under the Eisenhower Ad¬
ministration the American

people

unprece¬

of

combination

Continued

higher

on

page

rate

of economic advance will

the

that

we

longer

no

economic
world

core

of

the

can

be

be

whole

Midland Securities

corpn. limited

Mr.

oeen

I would like
myself to a sub¬

address

your

text

my

which

I

said

I

The Investment Dealers' Association of Canada

Canadian Government,

this purpose,
permission, I would
a little more
directly

saying, and, for

with

like to hold
to

members:

Chairman,

to

now

coalition.

and

Municipal

Corporation Securities

had

already distributed.
PART II

During the
hower

was

General.

nation's

Dwight Eisen¬

war

known

as

The

The Midland Company

G.I's

member:

The Toronto Stock

After three years as the

Chief

Executive

he

Stock orders executed

can

LIMITED

Exchange

on

fairly be caiieu rihe People's Pres¬

all Exchanges

ide nt.
-

The

which

affection

he

was

and

held

regard
in
by wartime

V

Toronto, Ontario: 50 King Street West

G.I.'s and in which-he is held to¬

London, Ontario: Huron & Erie Building
Sault Ste. Marie, Ontario:

tb«

ProsMent's

wide-ranging

own

concern

/ i

d°ep

110 March Street

and

Montreal, Que.: 215 St. James Street West

for them and

to

Eastman, Dillon & Co., New York

NESBITT, THOMSON AND COMPANY, INC.
25 Broad Street,

140 Federal

New-York City 4

Telephone HAnover 2-8875

Street, Boston 10

Telephone HAncock 6-3355

LIMITED
Teletype NY 1-4358

Dealers in

IN

GOVERNMENT, MUNICIPAL

CORPORATION

AND

Canadian Government,

SECURITIES

50 King Street West

Municipal

Public Utility & Industrial Issues

276 St. James Street West

Toronto, Canada

Montreal, Canada

Telephone; EMpire 4-0161

Telephone: HArboor 4261•

Ottawa

Winnipeg

London

Hamiltont

Calgary

Kitchener

Quebec-

Sherbrooke

Orders

Stock

executed

Exchanges

or

at

on

all Canadian
New York .prices

net

Vancouver
New York
Affiliated with

NESBITT, THOMSON AND COMPANY
Limited
AND

...

MEMBERS Of THE TORONTO STOCK EXCHANGE

THOMSON & CO.

MONTREAL STOCK EXCHANGE

MEMBERS

CANADIAN STOCK EXCHANGE

MONTREAL

50




ORDERS

EXECUTED

ON

ALL

STOCK

EXCHANGE

TORONTO

EXCHANGES

King Sfreef West, Toronto, Canada—EMpire 4-0161

STOCK

EXCHANGE

CANADIAN

STOCK

64

can
people.
If it
doesn't, we
will find this economy of ours so
trussed up, so bound up, that our

Private Wire

DEALERS

.

terests?

day by his fellow-citizens reflect

ing.

Ralph I). Baker

*

millions

in

believe

we

mean

for

treatment

money

Arnold B. Massey, Sec.-Treas.

•'

•

.

to

situation

this
seize

Government must be de¬

to

_

.

in

group

permitted

some

benefit.

•

the

ject that grows out of what I have

that

methods

statement

New York

Securities

of

freeze

equality of opportunity for every
American; in support of research.

Ashplant & Co.

Dominion

has

be

no

responsibility
for
keeping
the
economy dynamic. Here we have
responsibilities to try and help,

acnieve

Vice-Chairman
B.

hold

dynamic, to

economy

that

free

with

McLeod, Young, Weir & Co.,
Ltd., Toronto
Frederick B.

country

such

Government

the

it

to

with

richly rewarded.

F.

and

puolic-debt-

management policy.
Third,

<

important,

obviously

to the markets of the world

investors

Y

wholeheartedly

is that of credit and

but if her products are given fair

Y

this

endorses,
of seeking to
foster
stability in the growth of our
econon ,v.
Within that obligation,

pansion and technological changes

access

which

1946,

Administration
and foreign

a

responsibility, under the Employ¬

tries, all make Canadian securities
with

keep our qconomy free
dynamic and growing.

which will

and

burgeoning manufacturing indus¬

popular

Concepts of the
Eisenhower Regime

before by new methods

transportation and

nical

now

rapidly

more

'

*,

ministration

This plain truth dooms to fail¬
the
concerted
effort
now

being made by

Wood, Gundy & Co., Ltd.

,

Toronto

•

(3) Under the Eisenhower 'Ad¬

ure

W. Pearson Scott

*

interests?

Securities

that

position under

intensified

■

.

The

James A. Gairdner

ductions sufficient to enable them

maintain

.

wages, lower taxes and a stable
cost of living — all at the same,
General welfare or special

time.

general welfare comes first.
The general interest is paramount.
Special interests and special
pleading have found no welcome.

George P. Rutherford

Toronto

achievement by them of cost re¬

to

Montreal

-

oft-declared

is best for 166 million Aihericaps?

A. E. Ames & Co., Ltd.

has

further tariff pro¬

for

and

;

•

His

The

Greenshields & Co Inc

-

C. G. Fullerton

stoutly resisted the pleas of these
tection

"

families.

guide to policy making as Presi¬
dent is the simple question: What

Peter Kilburn

-

Co., Inc.

New York

;.

rendered

United States and
competition. Thus far

by

European
the

been

their

Wood, Gundy & Co;, Inc.
New York

Andrew G. Curry

and

difficult

Edward S. Johnston

Montreal

certain lines of consumed durables

market itself

1

Collier, Norris & Quinlan Ltd.

textile

STOCK

EXCHANGE

MONTREAL QUEBEC TORONTO

WINNIPEG

REGJNA

VANCOUVER

OTTAWA HAMILTON LONDON,

SASKATOON

VICTORIA

CALGARY

SAINT JOHN, N. B.

ONT. KITCHENER

EDMONTON

LETHBRIDGE

FREDERICTON

MONCTON

-64

The Commercial and Financial Chronicle

(2588)

Continued

from

in

63

page

labor

disputes,

fact that has

a

seen

restoration

a

of

Under the Eisenhower Ad¬

(9)

fiscal

promises
budget and a
present end to the increase in the

public

and

a

balanced

year

debt.

General

welfare

the

in

tion

Federal

corrup¬

of

Internal

Bureau

Revenue have been

or

and

scandal

ministration

integrity which this

put to an end

integrity has again been re¬

stored to the collection of Federal

there

simply

not

are

"tidelands"

of the most remarkable
periods of labor peace in our his¬
tory. General welfare or special

coming to

finance

has

been

eral power

monopolies and at the
provide for all the

interests?

pressing national needs which can
be paid for only out of the Fed¬

the

make

last

three

(15) Under the Eisenhower Ad¬
ministration

the

for

lated

to

broad

a

first

time

help

is

program

being

formu¬

American com¬
chronic un¬
employment to help itself attain
a better share of the nation's good
times. General welfare or special
munity

any

blighted

by

time

same

regional

Fed¬

December 15,1955

Court,

Supreme
the

to

years one

have

that

enough Federal tax dollars forth¬

helped

Essential Concepts of the
Eisenhower Regime

shows

.; Thursday,

.

resolved at last
The

issue.

result

extension of Amer¬

the

ica's oil frontier to the

Continental

Shelf, the creation of thousands of
jobs, and the generation of a rich
flow of revenue to both Federal

It makes sense, for and state treasuries. General wel¬
example,
that
the
citizens
of fare or special interests?
Memphis do what they now find
(25) Under the Eisenhower Ad¬
they can do—finance construction ministration enforcement of the
eral treasury.

of

steam

new

a

their

own

TVA

build

plant

power

rather

than

have

of
the

anti-trust laws is today

both vig¬
In
the

fair-minded.

and

orous

the Jus¬
52 an¬
ministration the largest tax re¬ interests?
across
the land.
It makes sense, titrust actions, nearly half again
(16) Under the Eisenhower Ad¬
duction in our history was enacted
f o r w a r d-looking too, for an investor-owned, tax- as many as were started in the
(10) Under the Eisenhower Ad¬ ministration
and of its $7.4 billion in Generics ministration
the
Department of programs have been presented to paying public utility company, on last comparable period before the

special interests?

nearly

two

dollars

went

uals.

of

out

three

every

directly to

General

welfare

Health,

individ¬

ministration

Congress

Federal

laws.

tax

statute

permits

toward

the

of

The

forward

a

manyfold the

ministration

step

The

law

new

farm

into

of

and

better

jobs

realistic

more

other desirable

provides

ductions

special

a

tax status
a

more

farm

purposes.

relief

surance

tended

more

for retired

have

or

the

General welfare

minimum
General

increased.

was

special interests?
14) Under the Eisenhower Ad¬

government has
high standard of
play and honest impartiality

maintained

or

wage

welfare

ministration

conserva¬

fair

special interests?

already increased maximum

(13) Under the Eisenhower Ad¬

people, and

for soil

ex¬

and, as a result of the
initiative,
34
states

ministration

improved

General welfare

been

additional

special interests?

or

de¬

favorable tax treatment of

expenses

tion purposes.

million

4

weekly benefits.

new

working

materially

has

coverage

President's

expenses,

for

special interests?

to

workers

ac¬

Among

reforms, the
for increased

all

ministration

permitting

medical

for

tax

mothers,

by

for

General

increased.

been
or

benefits

(12) Under the Eisenhower Ad¬
unemployment
in¬

re¬

depreciation

counting for tax
law

have

industrial

our

plant and to the creation of

retirement

welfare

major obstacle to further

modernization

workers, have been brought
the social security program

and

num¬

also

million additional

10

a

be

will

and

problems
cal

presented

the shortage of class¬

as

and the

high cost of medi¬
General welfare or spe¬

care.

with

(17) Under the Eisenhower Ad¬
ministration

inherited

the

farm

the verge of total
collapse from the weight of over
$7 billion of unmarketable sur¬
program,

the basis of

the

of

money

unanimous decision

a

Federal

on

Commis¬

Power

sion, to build three dams on the
Snake River in Idaho to develop
eventually

more

gle

high

dam

than
sin¬

power

would be forthcoming

interests?

cial

Americans, including farmers and

goal

owning shares
in our growing
business enter¬
prises by reducing the discrimina¬
tory double taxation of dividend
income.

Congress,

again, to help meet such pressing
rooms

plant

a

raised from Federal taxpayers all

interests?

(11) Under the Eisenhower Ad¬

Americans

moves a

in

interests?

cial

new

Administration's

of increasing

ber

the President's
General welfare or spe¬

cabinet.

completed

monumental revision of

a

Welfare

and

people permanent

our

representation

(8) Under the Eisenhower Ad¬

our

of

concerns

interests?

in 1954

Education

special

established to give these vital

was

special

or

General welfare or

taxes.

(7) Under the Eisenhower Ad¬

from

a

Hell's Canyon
twice refused

at

which Congress has

to authorize and which would cost
the

nation's

least

at

taxpayers

ended Sept. 30 last,
Department started

year

tice

President

welfare
This

nomic

took

office.

General

special interests?
highlighting of its eco¬
record
shows
that
the
or

Eisenhower Administration is un¬

dedicated

swervingly
the

general welfare.

the

to serving
It is giving

American

with both
is

an

a

people government
heart and a head. It

Administration whose lead¬

Eisenhower er's iron refusal to play politics
thus
means with the people's prosperity has
is being vigorously and conscien¬ more power sooner, financed in¬ truly brought to our land a New
Era of Good Feeling.
tiously rebuilt. We cannot rely on creasingly through local public or
President Eisenhower has de¬
the human catastrophe of war or private borrowing of the people's
the natural catastrophe of drought savings rather than out of Federal nounced no group in our society
as
greedy, as sinister or as a
to bail out the nation's farm pro¬ taxes. General welfare or special
interests?
"special interest" bent solely on
gram.
Moving from a war-ex¬
(23) Under the Eisenhower Ad¬ its own ends at the expense of
panded footing to a more nearly
Nor has he favored any
peacetime basis has made some ministration the genius and drive others.
He has constantly urged
painful readjustments in agricul¬ of private enterprise have been group.
the cooperation of all to the end
ture unavoidable.
The transition brought in directly to hasten the
of national well befng.
The eco¬
will be speeded by full operation development of the peaceful uses
consequences
of creating
of the Agricultural Act of 1954, of atomic energy in order more nomic
this
new
national
atmosphere
by the surplus disposal legisla¬ swiftly and surely to make the
tion passed by Congress, and by atom a force for good for all the have been enormous for good for
pluses

which

to

measures

new

special

a

early in
tration

be

proposed

Presidential

January.

will

$400

in

message

The Adminis¬

The

million.

policy

hel'ped generate, partnership

it

welfare or spe¬

(24) Under the Eisenhower Ad¬
ministration

Congress

this task until production is again

Submerged

Lands

brought

when

at

unrelentingly

into

that

prices

with

line

will

pursue

markets

passed the

Act

which,

upheld by the United States

our

conduct

follow his

example.

the

reward

farmer fairly for his work.

people. The high standard
which the President
has set is a marker against which
to
measure
discussion of public
issues.
We would all do well to
all

of

General

people.

cial interests?

Gen¬

eral

welfare or special interests?
(18) Under the Eisenhower Ad¬

ministration

15-point Rural De¬

a

velopment
launched

L. G. BEAUBIEN «■ C2.

ized

farm

of less

DEALERS

AND

-

.

of QUEBEC

Fabriques,

Religious Institutions.

position.

Ottawa

Hyacinthe

Toronto Stock

government

created

by

wel¬

first

peacetime

CANADIAN

agency

Congress for

the

assisting,

protecting small business
enterprises.
General welfare or

ministration
1953

I

Shawinigan Falls

Sherbrooke

Brussels

of Canada

Exchange

to bet¬

GOVERNMENT-MUNICIPAL-CORPORATION
SECURITIES

special interests?
(20) Under the Eisenhower Ad¬

Trois-Rivieres

Paris

year

General

the

sold

the

the

in

in

government

Inland

Waterways

It thereby ended its
American citi¬

competition

CANADIAN

with

this

respect, made
cific provision for continued
zens

St.

Members
Investment Dealers* Association

mil¬

incomes

ministration

Corporation.

Quebec

with

Brawley, Cathers &•Company

the

and

NOTRE DAME STREET, WEST

MONTREAL

1%

sole purpose cf advising,

Government, Municipal, Corporation,

School Commissions, Parishes and

221

time

our

families

been

organ¬

fare or special interests?
(19) Under the Eisenhower Ad¬

was

.

first

than $1,000 a

their

an

independent

Specialists in Securities Originating in the
Province

the

problem of heloing

ter

UNDERWRITERS

for

basis

lion

LIMITED

has

program
to attack on

spe¬

BANK

OF COMMERCE

EMPIRE

BUILDING

3-5821

serv¬

ice

to

ey.

Similarly, under special leg¬
enacted by the Congress
1953, the Administration has

them, and, in the process,
obtained a sales price big enough
to recover the previous 14 years
of operating losses that had been
made up out of Federal tax mon¬

TORONTO

islation
in

sold

Collier Norris

&

Quinlan

MEMBERS
MONTREAL
CANADIAN

STOCK

STOCK

EXCHANGE
EXCHANGE

25

government-owned

syn¬

thetic rubber plants for $272 mil¬

lion,

showing
Treasury
over

profit to
the
the
depreciated
book value of the plants of $158
million.
General welfare or spe¬

*

Underwriters

a

Members of

and Distributors oS

The Investment Dealers'

Canadian Government,

cial interests?

Association of

Canada,

(21) Under the Eisenhower Ad¬
ministration
vanced

the

to

first

equip
time

interstate

quate

to

millions

Collier Norris
Limited

plan has been ad¬

a

this

with

highway
meet

of

car

the

nation
a

first

system
needs

owners

as

of

ade¬

Dealers'

our

well

as

&

Quinlan

pressing requirements of de¬
fense and economic development.
General

Association

welfare

or

special

in¬

(22) Under the Eisenhower Ad¬
of Canada

ministration
and

Montreal
507 Place d'Armes

HArbour 2201




Toronto Stock Exchange

Corporation Securities

the

MEMBERS
Investment

Municipal and

for
rate

terests?

The

The

Toronto

320

aged

private—have
to help

electric

Bay Street

EMpire 8-2984

local

Bankers bond corporation
Limited

groups—public

been

encour¬

Business Established 1912

supply the nation's

power

needs

which

will

44 King Street West, Toronto, Canada

at least double in the next decade.
In addition to being right in prin¬
ciple, this partnership approach is
common

sense

because the record

kitchener

london

hamilton

m

Volume

182

Number 54S0

.

.

.

in m

(2589)

The Commercial and Financial Chronicle

INVESTMENT BANKERS ASSOCIATION
OF AMERICA
'•

;

•

,

4

'

•

•

•

<

'

'

' '

OFFICERS 1955-1956
■'if.:

President

Vice-President
Vice-President

George W. Davis
Davis, Skaggs & Co.,
San Francisco

Robert H.

Andrew M. Baird
A. G. Becker & Co.

American Securities

Incorporated,

Craft
Corporation,

New York

Chicago

V ice-Presid ent

Vice-President

John C. Hagan,

Jr.

Mason-Hagan, Inc.,

Richmond, Va.

William C. Jackson, Jr.
First Southwest Company,

Dallas

Vice-President

Delmont K.
The First

Pfeffer

National City Bank

of New York, New

York

i

*
4

+




65

66

The Commercial and Financial Chronicle

(2590)

..

Thursday, December 15,1955

.

IB A GOVERNORS

William M. Adams

Gustave A. Alexisson

Braun, Bosworth &

Granbery, Marache &

Co., Incorporated,

Co., New

York City

J. Murrey

Warren D. Arnold
F.

S. Moseley

Atkins

James Richardson

C.

Sons, Winnipeg

Inc., Charlotte, N.

Boston

Thomas

Ralph 0. Baker

R. S. Dickson & Co.,

& Co.,

Beckett, Jr.

First

&

Southwest

Company, Dallas

Harry Beecroft

Orlando S. Brewer

Beecroft, Cole & Co.,

Phelps, Fenn & Co.,
New York

Topeka

City

Detroit

James R. Burkholder
Almstedt

Brothers,

J. Douglas
A.

C.

Casey;

Allyn

and.

New York

Company

Louisville

Walter J.

Harold H. Cook

Coughlin

Gordon Crouter
De Haven

Company, Denver

City

&Townsend,

Crowell,

Crouter & Bodine,

Incorporated,
Chicago

ft

Warren H. Crowell

Lester H. Empey
American

Coughlin and

Co.

Spencer Traslc &

&

Weedon

Co., Los Angeles

Thomas W. Evans

Trust

Continental
National

Company,
San Francisco

Trust

Philadelphia

Illinois

Bank

&

Company of
Chicago

"

Charles N. Fisher
Singer,
Scribner,

Deane

&

Pittsburgh

Robert W.

Fishei;

Blyth & Co., /rrc.„
New York City

Waldo

W. C. Hammond, Jr.

Bert H.

Hemphill

White, Weld & Co.,
Boston

Stifel,

Waldo Hemphill &

Co., Seattle

Horning

Nicolaus

J. Earle Jardine,

&

Jr.

William R. Staats &

Company,

William D. Kerr

Estabrook & Co.,

Bacon, Whipple & Co.

Boston

Co., Los Angeles

Incorporated,

William T. Kemble

Chicago

St. Louis

James J. Lee

Quitman R. Ledyard
Equitable Securities

W. E. Hutton &

New York City

Corporation, Nashville

Ludlow F. North
Robert W. Baird & Co.,

Incorporated,

Co.,

Richard H. Martin

Walter

Pacific Northwest
Company, Portland

W.

Kalman & Company,

Hammill &

Morton

New York

Lee H. Ostrander

Alfred Rauch

William Blair &

Kidder, Peabody & Co.

Company, Chicago

Milwaukee




Philadelphia

James E. Roddy
S charft

& Jones, Inc.,

New Orleans

Walter A. Schmidt
Schmidt,
Roberts

&

Poole,
Parke,

Philadelphia

Joseph W. Sener
John C. Legg

&

Co.,

Incorporated,

Inc., Minneapolis

Co., New York City

H.

&

Company, Baltimore

Paul L. Mullaney

Chapin S. Newhard

Mullaney, Wells &

Newhard, Cook & Co.,

Company, Chicago

William H. Morton

Donald E. McFarland

Maynard

Shear son,

St. Louis

City

Robert 0.

Shepard

Prescott, Shepard <6Co., Inc., Cleveland

Rudolf

Smutny

Salomon

Bros.

Hutzler, New

City

&

York

Eaton

Taylor

Dean Witter & Co.,
San Francisco

Volume 182

Number 5490

.

.

.

The Commercial and Financial Chronicle

Pictures Taken
At

(2591)

at

1955 IBA-Convention

Hollywood Beach Hotel, Florida

George W. Davis, Davis, Shaggs & Co., San Francisco; Joseph T.
Johnson, The Milwaukee Company,
Milwaukee; Laurence M. Marks, Laurence M. Marks & Co., New York; Albert T.
Armita&e, Coffin &
Burr,
The

Mrs.

^Incorporated, Boston; T. Jerrold Bryce, Clark, Dodge &

Ohio

Company,

Co., New York City; Ewing T. Boles,
Columbus; Waiter A. Schmidt, Schmidt, Poole, Roberts & Parke,
Philadelphia

George Barnett, New York City; Mr. & Mrs.. Delmont
Pfeffer, First National City Bank, New York

Mr. &

K.

Mr.

£

Mrs. Ccorgc

Mrs. George P. Rutherford, Dominion Securities Corporation, New York; Mr.
H, Campbell, Bell, Gouinlock & Company Limited, Toronto




67

\V. Davis,

*

New Jim Daisy InitV.cs:
Andrew M. Baird, A. G. Bscker & Co., Incorporated, Chicago;
Sydney G.
Du fy, Blvth & Co., Inc., New York;
William C. Jackson, Jr., First Southwest Conpzny, Dallas;
Delm:nt K. P effer, First National City Bank, New York; Robert O.
Shepard, Prescott, Skepard & Co.,

inc., Cleveland;

Davis, Skaggs & Co.,

Theodore

San Francisco

von

Mr.

&

Glahn, Salomon Bros. & Hutzler, New York City

Mrs.

Walter
t.

&

Mrs.

Irving

Mr.

&

Mrs.

Sidney L.

A.
'

Schmidt,
i

Schmidt, Pco'.e,

Roberts

<6

Parke,

Philadelphia

Sholley, Keystone Company of Boston, Boston; J.
Hart Inc., Montreal; Mrs. John
Swaney, Boston

Ernest

Savard,

Savard

&

68

Paul

E.

The Commercial and Financial Chronicle

(2592)

Youmans,

James

M.

Bosworth, Sullivan & Company,
Boettcher and Company,

Powell,

Inc., Denver;
Denver

Shelby Cullom Davis, Shelby Cullom Davis <ft Co., New York;

Mr.

&

City;

Mrs.

Rudolph Smutny, Salomon

B. F. Houston, Dallas Union Securities

Company, Dallas; Patricia Churchill; Charles L. Churchill, Scott, Horner & Mason, Inc.,

Edwin

L. Gilroy,
First Securities Company of Chicago, Chicago;
Mary Lincoln, Investment Banhers Association, Washington, D. C.;
Charles M. Miller, Mullaney, Wells & Company, Chicago




Industrial Securities

Committee

Bros. & Hutzler, New York

W. S. Hildreth, Peoples National Bank,

Lynchburg, Va.

Mr.

&

Charlottesville, Va.

Mrs.

George

B.

Mr.

&

.

.

.

Thursday, December 15,1955

Broome, Guaranty Trust Company of New York,
York; John S. Linen, Chase Manhattan Bank, New York

Mrs. Robert

New

Kneass, Philadelphia National Bank, Philadelphia;
Newburger, Jr., Newbu.ger & Co., Philadelphia

Lex Jolley, The Robinson-Humphrey Company, Inc., Atlanta, Ga.;
Joseph Morris, The Robinson-Humphrey Company, Inc., Atlanta, Ga.;
Frank A. Chisholm, Varnedoe, Chisholm & Co., Inc., Savannah, Ga.

Mr.

&

Mrs.

Frank

A. McDonald,
McDonald Moore & Co., Detroit;
McDonald, Chicago; Charles C. Pierce, Rauscher, Pierce &

Harry

Dallas

Membership Committee

L.

Camille
Co., Inc.
|

Volume 182

Mark

Mo.;

A.

S.

Number 5490

.

.

.

The Commercial and Financial Chronicle

Lucas, Jr., Lucas, Eisen & Waeckerle, Inc., Kansas City,
Whitney Bradley, Eaton & Howard, Incorporated, Boston;
H. Edwards, R. J. Edwards, Inc., Oklahoma City

Mr. &

Mrs.

(2593)

Irving J. Rice, Irving J. Rice & Company, Incorporated,
St. Paul, Minn.

John

Mr.

&

Mrs.

Robert

Hallowell,

Arthur

R.

Robinson,

Charles

O.

Shepard,

Hallowell,

A.

Prescott,

Shepard

&

Co., Inc.,

&

Cleveland;

Mr.

M.

Anderson & Strudwick, Richmond, Va.; Mr. & Mrs. Charles
& Co., Detroit; Gilbert H. Wehmann, White, Weld & Co.,
Gordon B. Whelpley, Goldman, Sachs & Co., New York

Parcells




Federal Taxation Committee

Mrs. Henry

&

R.

Hansel,

Shields
Bankers

<ft

Association

Blyth & Co., Inc., New York; Mr. & Mrs. William H. P. Townsend, E. W. Clark
Philadelphia; Murray Hanson, Investment Bankers Association, Washington, D. C.;
Max A. Hewitt, Jones, Kreeger & Hewitt, Washington, D. C.

Edward Glassmeyer,

& Co.,

McCurdy,

A. Parcells, Jr.,
New York;

Goodbody & Co., New York; Douglas
Company, New York; Erwin W. Boehmler,
of America, Washington, D. C.

Mr. & Mrs. Thomas A. Larkin,
R.

Investment

Co., Philadelphia; Mr. & Mrs. Wallace
Thayer, Baker & Co., Philadelphia

Sulzberger

69

Mr.

&

Mrs. J. W. Speas, Norris <fi Hirschberg, Inc., Atlanta; Rucker Agee, Sterne, Agee &
Birmingham; Lex Jolley, The Robinson-Humphrey Company, Inc., Atlanta; H. W. Clark,
Clark, Land street <fi Kirkpatrick, Inc., Nashville

Group

Chairmen's Committee

Leach,

70

(2594)

The Commercial and Financial Chronicle

'v

Mr.

&

Mrs.

Hudson

Graham

'

Halliburton, Equitable

Securities

Corporation, Durham, N. C.; Lloyd B. Waring, Kidder, Peabody &
Co., Boston; Allan Weintraub, Bear, Stearns <fi Co., New York; Mrs. & Mr. Edmund C.
Byrne,
Byrne and Phelps, Inc., New York

dum'j01?

£rth,tr8\ Aj}t}ur8' „Les.trange*
Ted

'
Lawrence Illoway, Aspden, Robinson & Co.,
Stokes, Stokes «fi Co., Philadelphia; Freeman Grant,
Thackara, Grant & Company,
Philadelphia; Charles V. Thackara, Thackara, Grant & Company, New York City

uadelphia;




Syndicate Committee

..

Thursday, December 15,1955

'

Mr. & Mrs. Fuller A. Harrington, Harrington & Co., Jackson, Miss.;
Gus

William D. Croom, First Securities

r

'

i

Jones, Cooley & Company, Hartford;
Morgan Stanley & Co., New York

B. Lemkau,

.

Corporation,

Nashville,

Mr.

&

Tenn.

Mrs.

Arthur

Wiesenberger,
New

Arthur

Wiesenberger

&

Co.,

Long

and

York

Joseph F. Lockett, Jr., Townsend, Dabney & Tyson, Boston; Hugh 'W. Long, Hugh W.
Company, Inc., Elizabeth, N. J.; Mr. & Mrs. O. Paul Decker, American National Bank
Company of Chicago; Jerome C. L. Tripp, Tripp & Co., Inc., New York

and

Trust

Mr.

& Mrs. Edward S. Lewis, Jr., Lewis
Company, Jackson, Miss.; Mrs E. B. Wulbern, Jacksonville, Fla.; Walter H. Weed, Jr., Union Securities Corporation, New York; Hagood Clarke,
Johnson, Lane, Space & Co., Inc., Atlanta

Mr.

&

Mrs.

W.

Linton, Delaware Fund,
Co., Buffalo; Townsend

Inc., Philadelphia; Frank C. Trubee, Trubee,
Rogers, Trubee, Collins & Co^ Buffalo

Collins

&

i

Volume 182

filWriiMWK

Number 5490

.

.

("

.

i'

■

«»i

'jnt-f,»>'w-jwflBrnwiiMTen

The Commercial and Financial Chronicle

71

(2595)

Mr. & Mrs. E. J. Altgelt, Jr., Harris Trust A
Savings Bank, New York; Mr. & Mrs. Philip F.
McLellan, Fifty State Street Company, Biston; Walter Maynard, Shearson, Hammill A Co., N. Y. C.

Mr. & Mrs. Albert O.

Foster, Foster A Marshall, Seattle; John J. Clapp, Jr., R. W. Pressprich A Co.,
Mr. & Mrs. J. Creighton Riepe, Alex. Brown A Sons, Baltimore

New York;

<**!

V -\I*1
•

O.if"

fwiyAWt >>>.-/tttJ.-.y.-. s

lfelS'S-4;.
WvFs/' -/-

ja''-'

/

■'

WPW

'

7

2

'

W
,

Mr.

&

Mrs.

Co., New

„

I

it

J///''.

J. Hollis

York;

Austin, J. W. Tindall A Company, Atlanta; V. Theodore Low, Bear, Stearns A
Mr. & Mrs. J. Murrey Atkins, R. S. Dickson A Co., Inc., Charlotte, N. C.

Theodore Weicker, Jr., E. F. Hu.ton A Company, New York City; Mr. & Mrs. John Latshaw,
Hutton A Company, Kansas City, Mo.; Richard K. Buechler, E. F. Hutton A Company, New

City;

E. Jansen
A

E. F.
York

Mr. & Mrs. Robert Rowe, Stroud A Company,

H. M. Byllesby and

Mr.

&

Hunt, White, Weld A Co., New York City; Hans A. Widenmann, Carl M. Loeb, Rhoades
New York City; Arthur W. Curtis, A. G., Becker A Co., Incorporated, Chicago;
William F, Weed, First of Michigan Corporation, Detroit

Co.,




Mrs.

Calvert,

Mr. & Mrs. John C. Schutz, Chiles-Schutz Company, Omaha

Mr.

&

Incorporated, Philadelphia; Mr. & Mrs. Sidney S. Blake,

Company, Incorporated, Philadelphia

M. Baird, A. G. Becker A Co., Incorporated, Chicago; Mr. & Mrs. Gordon
Investment Bankers Association, Washington, D. C.; Alfred J. Stalker, Kidder,
°eabody A Co., New York

Andrew

R. McBride, Wright, Wood A Co., Philadelphia; John E.
Robert E. Daffron, Jr., Harrison A Co., Philadelphia; Harry
A Co., New York City

Mrs. Alfred

Philadelphia;

Friick<t, Bitche A Co.,
A. Jacobs, Bache

72

The Commercial and Financial Chronicle

(2596)

mm:

II'■£

...

Thursday, December 15,1955

'
'■WT

I
wMm

/

"-"iJ

■0>h
Wy..,

V''
f:

.

'7"*-"A

:

*

'

Jl'il?

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1III-

j-'v

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;

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v.

•f'Ci

4/.

I

"1

<

,

/

,.4

w fill
i

W:M-.

:#:II
;y">

llfl

fai

Francis

X. Coleman, Gregory & Sons, New York; Mrs. John W. Ahearn, Boston; Robert B. Harkness,
Dwinnell, Harknesy& Hill, Incorporated, Boston; John W. Ahearn, Rockland-Atlas
National

Mr.

Bank,

Boston

Mrs.

Jr.,

E. M. Bancroft, Stranahan, Harris & Company, Toledo; Mr. & Mrs. William N. Murray,
The Illinois Company Incorporated, Chicago; Walter H. Stohl, Fidelity Union Trust
Company, Newark, N. J.

Mr.

&

&

Mrs.

Frank

C.

Carr, John Nuveen <£ Co., Chicago; Mr. & Mrs. George J. Gruner,
John

Mr.

&

Mrs.

Edwin

T. Seving,

Nuveen

&

Co.,

New York

Farrell, City National Bank & Trust Co., Kansas City, Mo.; Mr. & Mrs. David H. Callaway, Jr.,
York; Roald A. Morton, Blue List Publishing Co., New York City;
Wehrheim, Philadelphia National Bank, Philadelphia

Mr.

&

Mrs.

St.

Mr. &

Fred

Louis;

Morton

Morgan, Coral Gables, Fla.; Mr. & Mrs. Harry Theis, Albert Theis & Sons,
Mr. & Mrs. Kelton E. White, G. H. Walker & Co., St. Louis; Ralph Fordon,
Fordon, Aldinger & Co., Detroit

Mrs. Frederick Johnson,

National

City

B. Horner, Scott, Horner & Mason, Inc., Lynchburg,
Va.; Mr. & Mrs. Frederick
Butcher & Sherrerd, Philadelphia; Mr. & Mrs. Miles A. Watkins, Stubbs, Smith
<ft Lombardo, Inc., Birmingham, Alabama




F. D.

First of Michigan Corporation, New
Mr. & Mrs. Robert
V.

Bank,

Dallas;

Barcus, Kindred & Co., Chicago; Mr. & Mrs. Lockett Shelton, Republic
Hagood Clarke, Jr., Atwill and Company, Miami Beach, Fla.

Jenks, Jenks, Kirkland & Crubbs, Philadelphia; Lawrence A. Brown, Jenks, Kirkland &
Grubbs, Philadelphia; John L. Blake, Eaton & Howard, Incorporated, Boston; J. B. Sanford, Jr.,
White, Hattier & Sanford, New Orleans; C. Evan Davenport, Jack M. Bass & Company, Nashville

U«W

!

HI

,i'f

Volume 182

Number 5490

...

The Commercial and Financial Chronicle

Arthur J. Neumark, H. Hentz & Co., New York; Carroll H. Little,
C. H. Little & Co., Jackson, Tenn.;
W. N. Estes,
C.

H.

Little

&

Mr.

&

(2597)

Mrs. Anthony E. Tomasic, Thomas & Company, Pittsburgh;
& Mrs. Robert V. Wehrheim, Philadelphia National

Mr.

Bank, Philadelphia

Coj Jackson, Tenn.

Homer

Lester

H.

&

Harold

J.

S.

O'Connell, Homer O'Connell & Co., Inc., New York City; William M. Cahn, Jr., Henry Herrman
Co., New York City; Milton F. Lewis, A. G. Becker <ft Co. Incorporated, New York City; Edward
Lewis, Jr., Lewis & Company, Jackson, Miss.; Charles L. Hewitt, Francis I. du Pont & Co.,
New York City;
Carr Payne, Cumberland Securities Corporation, Nashville

Herbert

I.

Shaw, Vance, Sanders & Company, New York
LeRoy Wilbur, Stein Bros. & Boyce, Baltimore

Mr. & Mrs. Carl H. Doerge,




City;

Walter

C.

Chandler

Nester,
Robbins,

M.
M.

William Raffensperger, Raffetisperger, Hughes •&' Co., ' Incorpo¬
rated, Indianapolis; Richard B. Walbert, Blyth & Co., Inc., Chicago;
William
J. Roberts,
Glore, Forgan & Co., Chicago

G.

Empey, American Trust Company, San Francisco; Mrs. Fred D. Stone, Jr., New York;
Schluter, First National Bank of Chicago; Mrs. Lester H. Empey; Fred D. Stone, Jr.,
Trust Company of Western New York, New York City; Robert H. Cook,
B. J. Van Ingen & Co. Inc., Miami, Fla.

Marine

A. Schapiro <£ Co., Inc., New York City;
A. Schapiro & Co., Inc., New York City

Wm. J. Mericka .<£ Co., Inc., Cleveland; Mr. & Mrs. John M. Maxwell,
The Northern Trust Company, Chicago

73

F.

Pennington Kemp, W. L. Lyons & Co., Louisville, Ky.;
W. L. Lyons, Jr., W. L. Lyons <& Co., Louisville, Ky.

James N. Russell, Gottron, Russell & Co., Inc., Cleveland; Mr. & Mrs. Robert Krumm, W. H. Morton
& Co., Incorporated, New York; Mr. & Mrs. J. M. Maxwell, The Northern Trust Company, Chicago

74

(2598)

The Commercial and financial Chronicle

.

•

}

'

;

■

.'

'00

''% \V '*?.:%< f'.-A

'

t\

<

*■
•

:0-04

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''■■■"■. 1000S'

'.
s

0'■%?'•''0;:0

H
■

' •;/''(.. '0

T

■'

JBBw
Mrs. Bayard Dominick, Dominich A
Dominick,
Jerrold Bryce, Clarh, Dodge A

T.

Mr.

&

Mr. &

Co.,

Mrs. Lewis

Mrs.

Atlantic

V.

New

New York City;

York

Hal

Coleman, North American Securities Co., San Francisco;
McCarley, Jr., McCarley A Company, Inc., Asheville, N.

F. Newell
National

Childs,
Bank

of

Murphy

City

Mr.

&

and

'■■■[

wa

'--l:JL

■

Mr. &

Thursday, December 15,1955

1

:%'■
0•:/

;..

Edwin

L. Beck, Commercial A
Chronicle, New York

Mrs. J. Nathan

Mr.

&

Mrs.

Financial

Coleman

C.

C. F. Childs

and Company,
Chicago; Mr. & Mrs. James A. Cranford,
Jacksonville, Jacksonville, Fla.; Mr. & Mrs. Robert M.
Gardiner,
Reynolds A Co., New York

Malcolm

S.

York;

J*'**.,.

\.

a

Prosser,

Edward

L.

E.

J. P. Morgan & Co. Incorporated, New
Albert Woll, Hayden, Stone & Co., Boston

Warren,

City;

Trainor, Peoples National Bank, Charlottesville, Va.;
Cassell, C. F. Cassell A Co., Inc., Charlottesville, Va.

Mr.

&

Mrs.

Seattle First National Bank, Seattle; Frank H. Morse, Lehman
Brothers,
Brainerd H. Whitbeck, First Boston Corporation, New
York; F. Brian Reuter,
Mellon National Bank, A Trust Co., Pittsburgh

Y-rk

E.

H.

New

m,r<
W.

Marshall

Bond

Co.,

Herbert

Schmidt, Drexel A Co., Philadelphia; Mr. A* Mrs. Powhatan M.
Conway, The Bankers
Louisville; Allen M. Terrell, Girard Trust Corn
Exchange Bank, Philadelphia;
Anderson, Distributors
Group, Incorporated, New York; John L. Ahbe, Distributors
Group, Incorporated, New York

Inc.,
R.




R.

S.

Abernethy, Jr., Interstate Securities Corporation, Charlotte, N. C.; Glenn E. Anderson, Carolina
Corporation, Raleigh, N. C.; Donald W. Hayden, Baumgartner, Downing &
Co., Baltimore;
D. Croom, First Securities
Corporation, Durham, N. C.; E. R. Jones, E. R. Jones A Co.,
Baltimore; W. Olin Nisbet, Jr., Interstate Securities Corporation, Charlotte, N. C.

Securities
William

Volume 182

Mr.

&

St•

Louis;

Mrs.

Number 5490

Hunter

Mr.

&

...

The Commercial and Financial Chronicle

Breckenridge, McCourtney-Breckenridge & Co.,
Mrs. Eugene
Vinyard, Central Investment
Company cf Texas, Dallas

(2599)

Douglas B. Weldon, Midland Securities Corpn. Ltd., Toronto; Cecil
W. McBride, Midland Securities Corpn. Ltd., Toronto; Mr. & Mrs.
Martin G. Kent, Equitable Securities Canada, Limited, Toronto

Rothschild & Co., New York City; Mr. & Mrs. Fred W. Hudson, Ball, Burge
Cleveland; Mr. & Mrs. John R. Hughes, Royal Securities Corporation Limited, Montreal;
Harry L. Gassard, Investment Dealers Association of Canada, Toronto

Chester W. Viale, L. F.
&

Kraus,

Mr.

Mr.

&

&

Mrs. Frank

Mrs.

National

L.

Lucke, Laidlaw & Co., New

Moines,




Iowa;

Mr

&

Mrs.

Dallas;

&

Mrs.

Ira D.

Jr., Merrill Lynch, Pierce, Fenner

<fi Beane, New York; Forrester A.

Clark, H. C. Wainwright

Co., Boston

Minneapolis; Mr. & Mrs. William N. Edwards,
Texas; Leonard A. Murray, Piper, Jaffray & Hopwood, St. Paul,
M. McCague, National Company of Omaha, Omaha, Neb.

Owen, Allison-Williams Company,

William N. Edwards & Co., Ft. Worth,

Minn.;

Mr.

&

Mrs. L.

C. Jackson, Jr., First Southwest Company,
Beckett, Jr., First Southwest Company, Dallas

William

Thomas

of Chicago, Chicago; Harold J. Schluter, First
Henderson, T. C. Henderson & Co., Inc., Des
John F. Bolger, Shillinglaw, Bolger & Co., Chicago

Edward J. Jennett, First National Bank
of Chicago, New York; Theodore C.

Bank

York

Mr.

Mr. & Mrs. William A. Forrester,

75

Mr.

&

Mrs.

Warren

Dominion

D.

Securities

Mr. & Mrs. Harrison C. Frost, Hayden,

Miller & Co., Cleveland

i

Arnold, F. S. Moseley & Co., Boston; Mr. &
Corporation, New York; Mr. & Mrs. Arthur F.
Applegate & Humphrey, Inc., Pittsburgh

Mrs. George P.
Hump
y,
•»

Rutherford,
»

76

(2600)

Kurt
Peter

Mr.

&

H.
K.

The Commercial and Financial Chronicle

Grunebaum, New York Hanseatic Corporation, New York;
Grunebaum, New York Hanseatic Corporation, New York

Mrs. Stewart

A.

Company,

James

C.

Ward,

Brothers

Mr. &

&

Mrs. Monroe

Mr. &

Mrs. Arthur

Torrey,

Dunn, C. /. Devine & Co., New York; George R.
Waldmann, Mercantile Trust
York; Malcolm F. Roberts, Garrett-Bromfield & Co., Denver

New

Poole, George




B. Gibbons

California

&

Bank,

Co., New York;
Los Angeles

Mr.

W. C. Pitfield & Company, Ltd.,

&

Mrs.

W.

Stern

Wayne Glover,

Mr.

&

Mrs.

Brothers &

..

Hiursday, December 15,1955

Frank B. Bateman, Palm Beach, Fla.; Mrs. Olive Whipple, Jackson¬
ville, Fla.; Joshua A. Davis, Blair & Co., Incorporated, New York

Montreal

Third National Bank, Nashville, Tenn.; Mr. & Mrs.
Russell
E.
Siefert,
Co., Kansas City, Mo.; Mr. & Mrs. Frederic C.
Beil, Jr., Beil & Hough, Inc..
St. Petersburg, Florida

V.

S.

.

Irving J. Rice, Irving J. Rice & Company, Incorporated, St. Paul; Russell
Siefert, Stern
Co., Kansas City, Mo.; Mr. & Mrs. Jerome F. Tegeler, Dempsey-Tegeler &
Co., St. Louis

Juliene

H.
Collins, Julien Collins &
Philadelphia; Mr. & Mrs. Walter

Company, Chicago; Edward Hopkinson, Jr., Drexel & Co.,
L. Morgan, Wellington
Company, Philadelphia; Mr. & Mrs.
Joseph W. Sener, John C. Legg & Company, Baltimore

Gustave

Alexisson,

Granbery,

Philadelphia; Mr. &

Marache

Mrs.

Charles

&
N.

Co.,

New

York;

John

F.

Bunn,

Jr.,

Bioren

Fisher, Singer, Deane & Scribner, Pittsburgh

&

Co.

Volume 182 " Number 5480

Hugh

Reese,

& Mrs. John
&

&

The Commercial and Financial Chronicle

Co., New York

New York City;
City; Eugene M.
La Grua, Barr

City

Chicago;

Mrs.

Ralph

X.

Arthur

H. Weed, Jr., Union Securities
Corporation, New York City;
Hornblower, Jr., Hornblower & Weeks, New York City;
Jr., Fidelity Philadelphia Trust Company,
Philadelphia

E.

Co., Detroit; William A. Devlin, Reynolds & Co.
Alex, Brown & Sons, New York City

Penington, Colket & Co., Philadelphia; Mr. & Mrs. James C. Warren,
York; Mr. & Mrs. W. Linton Nelson, Delaware Distributors, Inc., Philadelphia

Horton,

A. M. Kidder & Co., New




(2601)

William G. Kurtz,

Chicago; Frederick W. Straus, Straus, Blosser
Lubetkin, Seligman, Lubetkin & Co., New York;
Coleman, Gregory & Sons, New York

Lloyd

& Mrs. John L. Kenower, Kenower, Mac Arthur &
New York City; Frederick H. Steiwer,

&

Walter

J. Reed, Straus, Blosser & McDowell,

McDowell,

Francis

Mr.

.

Paine, Jr., Abbott, Proctor & Paine,
Gregory III, Gregory £ Sons, New York
Newhard, Cook & Co., St. Louis; John
Brothers

Mr.

.

E.

William

Mr.

.

Mr.

&

Mrs.

Rhoades

Jack R.

George

Mr.

&

York;
T.

K.

77

Mrs. James D. Hannaford,
Dawson Hannaford, Inc., New
Ralph D. Baker, James Richardson & Sons, Winnipeg; W.
Collier, Collier, Norris & Quinlan, Ltd., Montreal; Fremont
W.
Robson, F. B. Ashplant & Co., New York

Sewell
&

Watts, Baker, Watts & Co., Baltimore; Hans A. Widenmann, Carl M.
Loeb,
Co., New York; Mr. & Mrs. Charles B. White, Chas. B. White & Co., Houston;
Claude Crockett, Crockett &
Co., Houston

Staples, Fulton, Reid & Co., Cleveland; Mr. & Mrs. Arthur P. Quinn, Quinn & Co., Albuquer>
que,
New Mexico; Robert W. Ewing, A. E. Masten & Co., Wheeling, W. Va.

J.

Gillies,

W. E.

A. C. Allyn and Company, Incorporated, New York; Mr.
Hutton & Co., New York; W. Carroll Mead, Mead, Miller <&

& Mrs. James
Co., Baltimore

J.

Lee,

The Commercial and Financial Chronicle

78

&

Mr.

Mrs.

Herbert

V. B. Gallagher, Yarnall,

Biddle & Co.

Mr.

&

Mrs.

Eugene

Treuhold, L. F. Rothschild

&

Co..

New

York;

Eaton

George K. Coggeshall, Schoellkopf, Hutton & Pomeroy, Inc., New York

Philadelphia

...

Thursday, Deefcifcber 15,1955

Taylor, Dean Witter & Co., San Francisco; Joseph
Union Securities Corporation, New York C ty

H. Kin_,

tm

i$i,
*

,

iMfr:

M

y;0 ./

\WJ

i

•

-•Sit®!

'y

■/v
<

'''

'A

%

'Y/t/t'yymfflfo,

•

*

Alfred

J.

B.

Ernest

Winston

Bache & Co., New York City; Mr. & Mrs. Milton G. Hulme, Clover & MacGregor,
Inc., Pittsburgh; H. Grady Wells, Jr., Andrews & Wells, New York

Averell,

Savard,

Savard & Hart, Inc., Montreal; D. H. Vermette, Savard &
Northwestern National Bank of Minneapolis; Mrs. John
Va.; Harold E. Wood, Harold E. Wood & Co., St. Paul

L. Molander,

f?.r

Hart, Inc.,
C.

Hagan.

Montreal;

m-

-i

Mr. & Mrs. George Martin, International Bank, New York; Edwin
of

Mr.

Kurt

Richmond

H.

Chicago;

Mr.

&

Mrs.

John

Knox,

Federal

Land

L. Gilroy, First Securities Company
Banks, New York City

Grunebaum, New York Hanseatic Corporation, New York; Mr. & Mrs. Hugh W. Long,
W. Long and Co., Inc., Elizabeth, N. J.; Mr. & Mrs Bertram M.
Goldsmith,

Hugh

Ira

Haupt & Co., New York

'1

P
*<-V

.V-.-vv

f*v-:<*.
i

>y

&£ <rv '*'*■

>v^

*'%\
i I

*

■EptlNii

Andrew

Beaubien,

L.

G.

Beaubien

&

Co.

Ltd.,

Montreal;

Robert

E.

Clark,

Calvin

Bullock,

Ltd.,

New York City; Russell D. Bell, Greenshields & Co. Inc., Montreal; Bradshaw Firstbrook, Greenshields
& Co. (N. Y.) Inc, New York City; William D. Kerr, Bacon, Whipple & Co., Chicago




"•Frank Burkholder, Equitable Securities

Humphrey Company,

Corporation, Nashville; Henry B.

Tompkins,

The Robinson-

Inc.,^ Atlanta; O. B. Wood, Jr., Southern Securities Corp., Savannah,

Merritt

Coleman,

Allen <£

Company,

New

York

City

Ga.;

Volume 182

George

Number 5490

MacDona;d, McLeod, Young, Weir, Incorporated, New
Mr. & Mrs. J. Henry Ratchffe, McLeod, Young, Weir &
Company,

&

Mrs.

P.

Fred

Stieglitz,

David

The Commercial and Financial Chronicle

C

York;

Mr.

...

M.

Ltd.,

Carel W.

Toronto

van

Chicago;

(2$03)

Heukelom, Television Shares Management Corporation,
Mr. & Mrs. Belmont Towbin, C. £. Untoberg,
Towbin Co., New York

Fox, P. F. Fox & Co., New York; Mr. & Mrs. William D. Prosnitz,
New York City; Samuel H. Rosenberg, Asiel & Co., New York

Halle

&

Wood, Wood, King & Dawson, New York; Mr. & Mrs. Frank T. Kennedy, C. J. Devine
Co., New York; Craig de V. Simpson, Bankers Trust Company, New York

&

Shelby Cullom Davis, Shelby Cullom Davis & Co., New York City; Denton D. Hall, R. L. Day & Co.,
York City; Mrs. Walter Morse; Kenneth C. Ebbitt, Shelby Cullom Davis & Co., New York;
Frank H. Morse, Lehman Brothers, New York; Walter E. Morse, Lehman Brothers, New York;

New

Foreground

(left

to

New




right)
York;

John
Mrs.

H.
John

Stafford,
W.

Lee

Reno.

Higginson

New

York

Corporation,

79

William F. Weed, First of Michigan Corporation, Detroit;

J. Emerson
Thors, Kuhn, Loeb & Co., New York; John C. Fitterer,
Kuhn. Loeb &

Co.. New

York

John C. Hecht,

Dempsey-Tegeler & Co., Los Angeles; Mr. & Mrs. Albert C. Purkiss, Walston <£ Co.,
Inc., New York; Edward H. Robinson, Schwabacher & Co., New York

Blancke

Noyes, Hemphill, Noyes & Co., New York; Mr. & Mrs. Jansen Noyes,
Hemphill, Noyes & Co., New York

Edward Burns II, F. Eberstadt & Co.,
Inc., New York; Andrew G. C. Sage II, Lehman Brothers,
New York City; Mr. & Mrs. James P. Stearns, Ball, Burge & Kraus, Cleveland, Ohio; Bernard B.
Knopp, First National Bank of St. Paul, St. Paul, Minn.; H. Frank Burkholder, Equitable Securities
Corporation, Nashville

80

The Commercial and Financial Chronicle

(2604)

Calvin M. Cross, Hallgarten & Co., New York; Elwood D. Boynton,
Hallgarten & Co., New York; William F. Howell, Hallgarten & Co.,
New

Mrs.

Robert

Craft,
First

New

John McG. Dalenz, Calvin Bullock, Ltd., New York; Mr. & Mrs. Howard Finney, Bear, Stearns &
New York; Alfred R. McBride, Wright, Wood & Co., Philadelphia

Mr. & Mrs. Edward S.

William

P.

Scott

R. Staats

Russell,

Williams

&

York; Mr. & Mrs. Delmont
City Bank of New York

Co.,

Amazeen, Coffin & Burr, Incorporated, Boston; Mr. & Mrs. J. Earle Jardine, Jr.,
Co., Los Angeles; William C. Hammond, Jr., White, Weld & Co., Boston

Clore, Forgan & Co., New York City; Mr. & Mrs. Paul O. Frederick, Baxter,
Co., New York; Charles M. Baxter, Jr., Baxter,. Williams & Co., Cleveland;
& Mrs, Arthur P. Nauman, Nauman, McFawn 4 Co., Detroit




Pfeffer,

Charles

Kenneth

S.
A.

James

&

Mr.

K.

National

York

...

Thursday, December 15,1955

Barrington, Harry Downs &
Co., New York City;
Kerr, Central Republic Company,
New York City;
M. Pigott, Central Republic Company,
Chicago

Charles

M. Miller, Mullaney, Wells & Company, Chicago; Mr. & Mrs. C. G.
Kaufman, Rodman
Renshaw, Chicago; Frank R. Warden, Central National Bank & Trust Company, Des Moines

Cecil

W.

McBride, Midland Securities Corpn. Ltd., Toronto; Mr. & Mrs. William D. Pettit, Knick¬
York; Mr. & Mrs. Pat G. Morris, The Northern Trust Company, Chicago

erbocker Shares, Inc., New

Mr. & Mrs. Kenneth J.

Howard, J. A. Hogle & Co., New York City; Mr. & Mrs. Roscoe C. Ingalls, Jr.,
Ingalls & Snyder, New York; Mr. & Mrs. H. W.
Putnam, Association of Stock Exchange Firms,
New York

City

Volume

Charles

182

F.

Number 5490

.

.

.

Eaton, Jr., Eaton & Howard, Incorporated, Boston; Mrs.
Crowell, Los Angeles; Francis S. King, The First
Boston Corporation, Boston

Warren

Mr.

Mrs.

&

Ray

Co.,

Condon, B.

Inc.,

Chicago;

J.

&

Thcmas

Mrs.

G.

Keith

Van Ingen
F.

Francis

& Co. Inc., Chicago; Matthew J. Hickey III, Hickey
M. Miller, Mullaney, Wells & Company, Chicago;
Hoban, McMahon & Hoban, Inc., Chicago

Funston, New York Stock Exchange; Mr. &
Crowell, Weedon
& Co., Los Angeles

B. Gannett, Hornblcwer &

City;

Raymond Stitzer, Equitable Securities Corporation, New York City;
Mrs. Albert C. Purkiss, New York City; Edgar J. Loftus,
W. C. Langley & Co., New York City

Mrs.

Warren

H.

Crowell,

Elmer

F.

Glore,

Dieckman,

Glore,

Forgan

&

Co.,

New

York;

81

Charles

Jr., Glore, Forgan & Co., Chicago; Raymond W.
Schoellkopf, Hutton & Pomeroy, Inc., New York

F.

Pyle,

Mr. & Mrs. Gilbert White, R. D. White & Company, New York City; Alfred G. Wilson, Newburger,
Loeb & Co., New York City; Frank S. Bennett, Cutter, Plummer & Bennett, New York City;
Benjamin F. Peyser, Newburger, Loeb & Co., New York City

Harold H. Cook, Allan C. Eustis, Jr., and Mr. & Mrs. Brittin C. Eustis, Spencer Trash & Co.,

New York City

Weeks, Boston; George T. Flynn, Hornblower & Weeks, New York

B. Bowman, Chase Manhattan Bank, New York;
Jr., Hornblower & Weeks, Chicago




&

Charles

Edward

Mr.

(2605)

The Commercial and Financial Chronicle

William J. Lawlor,

Robert L. Hatcher, Chase Manhattan Eank, New York; Mr. & Mrs. Sheldon R. Green,
hattan Bank, New York; Andrew K. Marckwald, Discount Corporation of New York,
Mr. & Mrs. Thomas A. Larkin, Goodbody <ft Co., New York

Chase ManNew York,

82

Mr.

The Commercial and Financial Chronicle

(2606)

Mrs. Gordon

&

Crouter, and Walter T. De Haven, De Haven &
Townsend, Crouter St
Bodine,
Philadelphia

George

J.

McLiney,

George

K.

G. Morgan,
Trust

Allen St Company, New York C.ty; Mr. &
Meyer, Jr., Hirsch St Co., New York City

Abrams,

& Company, Kansas City, Mo.; Mr. & Mrs. Henry Stravitz,
New York City; Mr. & Mrs. L. Paul Close, Rambo, Close
St Kerner, Inc., Philadelpia

The Hanover Bank, New York City;

Company, New York; Russell
Scott

Gordon

S.

Maurice

Baum

Swiss American Corporation,

Evans

James

&

Welles.

Mr. &

Mrs. Welles

The Hanover Bank, New

Stringfellow,

Laud-Brown,

The

Bankers

York; Buford Scott,

Richmond, Va.

E. Heffern, National City Bank of Cleveland, Cleveland; Thomas L.
Anglin, Mackall St Coe,
'Washington, D. C.; Mr. & Mrs. Robert M. Clark, Blunt Ellis & Simmons, Chicago; Charles S.
Werner, Wertheim St Co., New York City




Mrs.

Jack

M.

Bass,
Keen

.

..

Thursday, December 15,1955

Jr., Jack M. Bass & Company, Nashville;
Butcher, Butcher St Sherrerd, Philadelphia

W.

W.

Mr. & Mrs. Curtis H. Bingham, Bingham, Wa'.ter & Hurry, Inc., Los Angeles; Henry J. Simonson,
J>*'» National Securities St Research Corporation, New York; Mrs. & Mr. David Gillmor, Jr.,
National Securities St Research Corporation, New York; Mrs. Henry J. Simonson

Mrs.

Peter M.

Flan'gan,

New

York

City;

Julian

K.

Roosevelt, Dick

&

Merle-Smith, New

York

City;

Mr. & Mrs. Alfred Ross, Dick & Merle-Smith, New York; Mr. & Mrs. Dooley Sedlmayr,
Merrill

Lynch,

Pierce, Fenner

St

Beane,

New

York

Mr. & Mrs. Lewis F. Lyne, Mercantile National Bank, Dallas, Texas; Mr. & Mrs. J. Bradley Green,
Guaranty Trust Company, New York City; Mr. & Mrs. D. A. Stoddard, Guaranty Trust
Company, New York City

Volume 182

Jo.in

S.

Number 5490

.

.

.

Loomis, The Illinois Company, Incorporated, Chicago;
Brown, Laurence M. Marks <fi Co., New York City

Carl

C.

Mr. &

Bert

(2607)

The Commercial and Financial Chronicle

W. Neal

Fulkerson, Jr., Bankers Trust Company, New York
Wanders, The Bond Buyer, New York City

Mr. & Mrs. Russell Ergood, Stroud & Company, Incorporated,
Philadelphia; Harry B. Snyder, Yarnall, Biddle & Co., Philadelphia

City;

George

Mrs. Leon

H.

Lees, Jr., Ira Haupt & Co., New York City; Mrs. Russell Siefert, Kansas City, Mo.;
Horning, Stifel, Nicolaus & Company, Incorporated, St. Louis; Leo L. Quist, Harold E. Wood
&
Co., St. Paul; Edde K. Hays, Central Republic Company, Chicago

83

Milton S. Emrich, Julien Collins <£ Company, Chicago; Mr. & Mrs. Newman L. Dunne, Robert W.
Baird & Co. Incorporated, Milwaukee; Mr. & Mrs. Charles F. Matton, Wachovia Bank & Trust

Company, Winston-Salem, N. C.; Harley A. Watson, Eldredge <fi Co., Inc., New York

JMWM

WHL

p.;

%
p.®

mwMmm
I
|/

v

>

Mm%\\\
-

Vj

V.1

;
!

'■■yyiy -' ' '
Mr.

&

Mrs.

Marshall

H.

'

Johnson, McDaniel Lewis & Co., Greensboro, N. C.;
James W. Davant, Paine, Webber, Jackson & Curtis, Minneaoolis

Mr.

&

Mrs.

P. Kenny, Wilis, Kenny & Ayres, Incorporated, Richmond; Laurence H. Lyons, Alien oi
Company, New York City; Arthur C. McCall, Alester G. Furman & Co., Inc., Greenville, S. C.;
Mark A. Smith, F. W. Craigie & Co., Richmond, Va.; Frank A. Chisholm, Varnedoe, Chisholm & Co.,
Inc.,
Savannah;
John Swaney,
Keystone Company of
Boston, Boston
George




■

Mr.

&

Mrs.

Sidney

J.

Mohr,
Arthur

E.

G. Smith,

Jr.,
P.

Thornton,

Nauman,

Mohr

Nauman,

and

Farish,

McFawn

Nesbitt, Thomson and Company, Limited,

Montgomery,

Montreal; Andrew Raymond,

Company, Inc., New York; H. Stanley Krusen, Shearson, Hammill
O'Connell, Homer O'Connell & Co., Inc., New York; James M. Heller,
New York; Richard F. Abbe, Shearson, Hammill & Co.,

and

Ala.;

Mr.

&

Mrs.

& Co., Detroit

Nesbitt, Thomson

& Co., New »ork> ?°JI?er
Shearson, hammill & Co.,
New York

84

Mr.

The Commercial and Financial Chronicle

(2608)

&

York

Mrs.

City;

Theodore

Gerald

P.

Von Glahn, Salomon Bros. & Hutzler,
Peters, Peters, Writer & Christensen,

New
Inc.,

Mrs.

Edward

Mackall

&

Mr.

&

Mrs.

Arleigh P. Hess, Woodcock, Hess & Co.,
Cunningham, Cunningham, Schmertz

B.

Coe,

Denver

Inc., Philadelphia; Mr. &
& Co., Inc., Pittsburgh

Wulbern, Jacksonville, Fla.; William W. Mackall,
Washington, D. C.; Henry C. Evans, Stein Bros.
& Boyce, Baltimore, Md.

Mrs.

Samuel

K.

Mr.

&

Mrs.

Walter

J.

....

Thursday, December 15,1955

John J. Quail, Quail & Co., Davenport, Iowa; Bernard J. Van

Ingen,
Jr., B. J. Van Ingen & Co., Inc., New York City; Lloyd B. Hatcher,
White, Weld & Co., New York City

Coughlin, Coughlin & Company, Denver; Mr.
F. W. Craigie & Co., Richmond, Va.

iXi:4i

&

Mrs.

;•

is,

Walter

vp;.

:,.v

W.

Craigie,

v,;,,,

ir,

/"X:
.mPr*

A
Stephen G. McKeon, Chas.
New
York; Gerald

W. Scranton &

B.

West,

Edward

Mr. &

Mrs. David

R.

Co., New Haven, Conn.; Orin T. Leach, Estabrook &
Stone &
Webster
Securities
Corporation, New York;

Gray,

New

York

Stock

Co.,

Exchange

Dattels, Dattels & Company, Ltd., Kitchener, Ont., Canada; Oliver J.
Troster,
Co., New York; Mr. & Mrs. Albert M. Schmelzle, Fusz-Schmelzle
& Co., Inc., St. Louis

Troster, Singer &
%

C.




Paul

W. Waterman, Jr.,

Wood,

Struthers
Andrew

&
K.

Security First National Bank of Los Angeles, Los Angeles; Philip K. Bartow,
Co., New York; A. Halsey Cook, First National City Bank, New York;
Marckwald, Discount Corporation of New York, New York City

Avery Rockefeller, Jr., Dominick & Dominick, New York City; Robert A. Powers,
Smith, Barney & Co,
New York; Wilfred L. Goodwyn,
Jr., Goodwyn & Olds, Washington, D. C.; J. Raymond Smith,
Weeden
Co., New York City

W. Ahearn, Rockland-Atlas National Bank, Boston; William R.
Laudy, Starkweather & Co., New York; J. F. Bunn, Jr., Bioren & Co.,
Philadelphia;
Walter H. Stohl,
Fide.it y Union Trust Company,
Newark, N. J.

J.

John

R.

Hughes,

(President
A.

of

Royal

Investment

Securities
Dealers

Corporation
Association

Schmidt, Schmidt, Poole, Roberts
dent

of

the

Investment

Bankers

&

Parke,

Limited, Montreal
Canada); Walter
Philadelphia (Presi¬

of

Association

of

America)

Stuart

(The St. Louis Room)

&

R.

C.
Lyklema,
A. C. Allyn
and Company, Incorporated,
Chicago; Arthur E. Goodwin, Jr., Rowles, Winston & Co., Houston;
Theodore C. Henderson, T. C. Henderson & Co., Inc.,
%
i
Des Moines, Iowa

Walter

Harry Theis, Albert Theis &

Mr.

Dickson, R. S. Dickson & Co., Inc., Charlotte, N. C.; Henry J. Blackford, Jr., A. M. Law
Company, Inc., Spartanville, S. C.; Mr. & Mrs. Coleman E. Trainor, Peoples National Bank,
Charlottesville, Va.; Roderick D. Moore, Branch, Cabell <& Co., Richmond, Va.;
H. Wilson Arnold, Arnold & Crane, New Orleans

&

Mrs.

Lee

W.

Carroll, Lee

•

Warren

&

«ft Co., Newark, N. J.

Mrs.

Frank

L.

Jr., Philadelphia; John
Cooley & Company, Hartford

Newburger,

-

Weedon & Co., Los Angeles; Mr. & Mrs. Richard C. Noel, Van Alstyne,
Co., New York; James A. Russell, Van Alstyne, Noel & Co., New York;
Wickliffe Shreve, Hayden, Stone & Co., New York

H. Crowell, Crowell,
Noel

W. Carroll




Arthur A. Christophel, Reinho'dt & Gardner, St. Louis; Grace Carver, St. Louis;
Sons, Inc., St. Louis; Kelton E. White, G. H. Walker & Co., St. Louis;
Breckenridge, McCourtney-Breckenridge & Co., St. Louis; Albert M. Schmelzle,
Fusz-Schmelzle & Co., Inc., St. Louis

Hunter

L. Gaerste,

Mr.

&

Mrs.

Graham

Walker, Joseph

McManus

&

Co., New

York

■■

■.

Matthew B. Pilcher, Mid-South Securities Co., Nashville; Hugh D. Carter, Jr., Courts & Co.,
Einar Nielsen, J. C. Bradford & Co., Nashville; Quitman R. Ledyard, Equitable

Securities Corporation, Nashville

Atlanta;

86

(2610)

Edward

S'arr

Drexel & Co.,

Mr.

III, Crexel & Co., Philadelphia; W. L. Dempsey,
Philadelphia; Gordon Crouter, De Haven & Townsend,
Crouler & Bodine, Philadelphia

H. Gregory III, Gregory & Sons, New York City; William
Gregory, Jr., Gregory & Sons, New York City;
Francis X.
Coleman, Gregory & Sons, New York City

William
H.

& Mrs. Arthur S. Friend, Folger, No'an-W. B. Hibbs &
Co., Inc., Washington, D. C.; Harry
Beecroft, Beecroft, Cole & Co., Topeka, Kansas; Mr. & Mrs. Philip J. Rhoads, First National
Bank & Trust Company, Oklahoma City
*

Herbert

Dean P.

Mrs.

The Commercial and Financial Chronicle

Shaw,

Vance, Sanders & Company, New
Edgar M. Norris, Greenville, S. C.

Guerin, Eppler, Guerin &

H. W.

Arnold, New Orleans;




York;

Sam

Winslow,
Winslow,
Douglas
Tubby Clark, WinsloU), Douglas

Turner, Dallas; John W. Turner, Eppler, Guerin &

Turner, Dallas;

Mr. & Mrs. Edward D. Muir, Muir Investment Corp., San Antonio

Karl

P.

.

..

Thursday, December 15,1955

Henry M. Fishman, Goodbody & Co., Miami; Alfred J. Ross, Dick
& Merle-Smith, New York; William Anderson, Jr., Equitable
Securities Corporation, Nashville

Herzer, R. L. Day & Co., New York City; Mr. & Mrs. Donald B. Brayshaw, Lord,
Co., Atlanta; Mr. & Mrs. C. Pharr Duson, Jr., Rotan, Mosle & Co., Houston;
Robert E. Moroney, Mcroney, Beissner & Co., Houston

Abbett

&

&

&

McEvoy,
McEvoy,

Albert

New

l'Cew

D.

York
City;
York City

Mr.

& Mrs. James W. Wolff,

John

W. Reno, Carl M.

Zuckerman, Smith & Co., New York;
Co,, New York

Loeb, Rhoades

Putnam, Putnam & Co., Hartford, Conn.; Jay Gould, Burns Bros. & Denton, Limited,
Toronto; Mr. & Mrs. C. Edward Howard, Piper, Jaffray & Hop wood, Minneapolis

t

Volume

182

Number 5490

.

.

.

The Commercial and Financial Chronicle

James
C.

Russell, Van Alstyne, Noel & Co., New York City; Robert
Hill, Hill Richards & Co., Los Angeles; Wi.llam R. McGid,
Lehman Brothers, New York

Thomas

Mr.

&

Bowen
William

Arthur
Preston

Mrs.

William

Hugh

Blair,
M.

S.

Wagenseller & Durst, Inc., Los
Calvin Bullock, Ltd., New York City

Hughes,

Bullock,

William

Witter,

W.

Curtis, A. G. Becker & Co.,' Incorporated, Chicago;
McNurlen, F. S. Moseley & Co., Chicago; C. Comstock
Clayton, Clayton Securities Corp., Boston

&

Mrs.

& Company, Chicago; Joseph Wise, Dean Witter & Co.,
Witter & Co., Chicago; John Raiss, Burnham and Company,
F. W. Pershing, Pershing & Co., New York

Blair

Dean

Mr.




87

(2611)

Mann, Glore, Forgan & Co., New York; Mrs. E. H. Cassell; Robert Brauns, McDonnell & Co.,
New York; E. H. Cassell, C. F. Cassell & Co., Inc., Charlottesville, Va.

Angeles;

WntjWta wrtiMMmininiiw.il

Eugene

Lynn,

New
New

York;
York;

G.

Brophy,

Blyth

&

Co.,

Inc.,

Chicago;

Glenn

L.

Milburn,

The Small-Milburn Company, Inc., Wichita; John F. Egan, First

California

Company,

San

Francisco

& Co., New York City; Mrs. John Hilson, New York
John C. Hagan III, Mason-Hagan, Inc., Richmond, Va.

Wertheim

Television Shares Management
Corporation, Chicago

Paul A. Just,

James

City;

Mr.

&

Mrs.

J. E. Fricke, Bache & Co., Philadelphia; Bertram M. Wilde, Janney &
Co., Philadelphia; T. C. Sheaffer, Wurts, Dulles & Co., Philadelphia

Samuel P. Johnson, Southwestern Securities Company, Dallas; T. Fritz Stewart, Southwestern Securities Company, Dallas; Arthur L. Baney, E. R. Jones & Co., Baltimore; Beverly W. Landstreet III,

Clark, Landstreet

&

Kirkpatrick, Inc., Nashville

88

The Commercial and Financial Chronicle

(2612)

Most dynamic city on
can

.

..

Thursday, December 15,1955

earth

pay to stay that way

To hold

her

supremacy

as

the

is held

by its

Sinking Funds

own

New York

City's securities, and

magnificent capital of American

and

civilization, New York City does

realty tax rate is lower than that

as

of

investments. Interest

run

to

She

can

big budgets, and

a

big debt.

afford it. She is thrifty, but

she cannot be

miserly. Let's look

behind the billions.
was

incurred

mainly for revenue-producing

Unique

many

Realty collections in recent
have

among

pur¬

American

for

exceeded

New

mended

by

a

The

other prominent cities.

levies. New

New York City's debt

poses.

Retirement Systems.

95%

years

of the tax

capital commitments

York

City

are

recom¬

recommend them for consideration

intrinsically diversified, sound
on

the obli¬

gations of New York City is

ex¬

empt not only from Federal in¬
come

taxation,

York State taxes

but
as

from

New

well.

only with extreme caution

capable Planning Commission

cities, New York has no substantial

and with the final

hidden,

THE

Board of Estimate.

overlapping

debts.

The

City's net tax-supported debt is
only about 10% of its vast taxable
resources,

which

those

all

of

are

the

greater than

New

England

States combined!
Over half of the City's total debt




The

Chase

approval of the

Manhattan

Bank,

through its Bond Department, has
long

carried

on

a

continuing,

thorough study of New York City's
fiscal operations and condition. We

maintain

an

active

position

in

Chase
Manhattan
BANK
HEAD OFFICE: 18 Pine Street, New York 15
Member Federal Deposit Insurance

Corporation -

Volume 182

Number 5490'..

.

The Commercial and Financial Chronicle

(2613)

89

V

Continued jrom page 36

figures considerably more
production; and the

pre-war

than

world

building

a

jobs and. seeking work, and this
improvement
continued
and
broadened throughout the sueceeding months. In the past three
the

jobs

has

been

total

number

and

of

persons

seeking

than
labor

civilian

work

2%%
force.

less

of

the

Employment opportunities have

continually faster

grown

than

the

force

force.

labor

in

Our

of

rate

num¬

months

has

been

Not

only

in the

nomic

5%

higher than

cast.

There has

newal

of

particularly to

is

ferrous metals.
the

paper

dustries

than offset

in

in

the

being

a

our

a

year,

the

and

to 28%, in housing to

20%.

13%
For

increase

main
rather

The roots of the

source

countries.

than

in

stocks

ag¬

cause

in

This

ma-

Basically,

is estimated will be only 1% above
last year.

subsidies

The Canadian International Trade

tion.

result

The

Situation

with

tariff

vof

to

Wood, Gundy & Company
Limited

QUEBEC
HALIFAX

MONTREAL

WINNIPEG

VANCOUVER

LONDON, ENG.

SAINT JOHN

TORONTO

OTTAWA

HAMILTON

LONDON, ONT.

KITCHENER

REGINA

CALGARY

EDMONTON

VICTORIA

Canadian

Exchange

Situation

position

a

U.

be¬

S.

was

of

dollar.

premium

acreage

ex¬

higher produc¬
The estimated production for
compared
for

with
the

a

on

parity

with

the

Burns Bros. &

Last

January the
Canadian dollar

the

Denton, inc.

37 Wall Street, Hew York 5

about 3V20 but by the end of

billion

about

month

declined

Canadian-U.

ago,

American

at

which

dollar

to

about

S.

time

Tel.:

average

parity
first

with

each

time since

DIgliy 4-3870

the

UNDERWRITING

—

DISTRIBUTING

—

TRADING

strengthened

other

March

for

1952.

Canadian Securities

the
Our

policy has been, and continues to
be, to allow our exchange rate

production

has increased proportionately over

TWX: NY 1-1467

ex¬

rather rapidly and on Oct. 19 our
two
currencies
were
quoted at

6

1939.

United States wheat

the

$600 million

Affiliated with

change rate remained fairly con¬
stant from this point until about

to

over

Street, Chicago 3

national economy.

protection.

and

of

deficit

are

The

than

trade

farmers

western

Government,

a

this had

bushels

a

Adams

wheat

iy2d.

billion

United States of

"

West

indirectly,

world

March

consequence

1935

105

Street, New York 5

'

"V

now

policies of

bushels

run¬

14 Wall
,

these

of

national

of

Exports and imports have both
expanded during 1955 by more
ning

look
con-

During the past six months the

large

arisen

1955 is not far short of IV2

still

in

Canadian dollar has moved closer

pansion has been

are

can

be

only

expansion has been

acreage

the

we

we

strength

Canadian

be

I

of world acreage expansion.

chinery and eauipment, which it

"

10%—and

our

nature.

the

have

and

the

our

as

to

The

problem go much

wheat

of

the
will

removal

greatly influenced
by anything so vital to them and

They lie in the
policies of a number of

national

run

is

and

of cash income of the great

we,

bound

Wheat

of

to

majority of

deeper than this.

and in
the

continuing

sumer

Wood, Gundy & Co., Inc.

But I can only repeat—
production is the principal

wheat

•to

generosity

the

directly

access

The wheat problem as it exists
today is not just a product of the

temporary

on

wheat

market.

of

little more

S.

U.

of

producer
with

restrict,

very

value

world

high artificial barriers which

Situation

mining,

quarrying and oil wells will

gregate, the
construction

last

in

problem

solved

by the decline in flour

non-

in¬
be 73%

investment

to

a

and

Canada

of

group

for

heavily protected by either high
or high subsidies, or both.
The

exports.

expected to
higher than in 1954, and in nonferrous metals group 53% higher.

institutions

from

down

increase

is

export,

the

in

He has confidence in the

wheat

Capital outlays in

products

are

Increased

agricultural

small

related

exports of pulp and paper and

investment

in

re-es¬

movement'

tariffs

expenditure.

consumer

wheat exports

rising level of

our

is

eco¬

and

manufacturing

in

slightly

some

investment

This

our

have

We

upward

producer

compete

However, it is quite another
thing
to
compete
with
wheat
grown in other countries where it

increased

an

to

it.

Wheat and wheat flour, our ma¬

jor

originally fore¬
been a sharp re¬

increased

manufacturing.

of

wheat

quality of his product and his
technical efficiency in producing

increase

increased

own

activity with

growth

for

This

States.

terms

equal

imports

our

Canadian

fully prepared

market.

in the main, from

come,

our

volume

1955, but the mid-year survey of
investment
indicates
that
total
capital expenditures will be

has

United

reflects

in¬

were

raised

intentions

vestment

is

spread

the

one

post-war period, has again ex¬
panded in 1955 after the moderate
decline of 1954.

in

increase

and

the main driving forces

in

foreign exchange markets.

the

crop.

The

fairly broadly
throughout the various categories

activity

Investment, which has been

the

1955.

of

The

ex¬

in Canada this year.

of

orderly ^conditions

sure

future.

tablished

meeting all costs of storing,
handling, transporting and selling

est products, which are $120 mil¬
lion
higher for the first eight

greater than normal growth in the

high

the

dictable

after

absolute increase has been in for¬

ber of unemployed in a period of

ceptionally

which

by the normal

economic forces without
official intervention except to en¬

by the Wheat Board

1954 ao

$20 million in

in 1955.
Similarly,
crude petroleum exports have in¬
creased from $4 million in
1954
to $18 million in 1955. The largest

the past year in¬
by 170,000, or about 3%,
but the number employed is up
more than 200,000, or nearly 4%.

labof force is evidence of the

from

million

$45

during

large decline in the

by

means

determined

of

year.

rose

1955
labor

creased

This

and

ways

be

play

spending based on rising
United States reduces these sur¬
We
have
witnessed
this year labor income. In the export field,
Our'increase in exports pluses is of serious, indeed, vital a very
sharp increase in the rate apart from wheat, there are no
has been in the non-agricultural
interest" to us.
of economic activity, all the more adverse
clouds
on
the
present r
field, with the major gains in base
In Canada we have a central striking
in
contrast
with
the horizon. We have
as
well the
metals, lumber, chemicals,
iron
selljng
agency
for
wheat,
the somewhat sluggish performance substantial and underpinning of
primary iron and steel and Canadian Wheat
< ore,
Board, but -we of 1954. Although our rate of ac¬ consumer demand by family al¬
newsprint. Shipments of iron ore do not subsidize the wheat
pro¬ tivity is high, there appears to be
for the first eight months of 1955
lowances, old age security, and unducer. The wheat grower in Can¬ no
ground
for
assuming
any
were more than $50 million com¬
Continued on page 90
ada receives an initial price on change of direction in the pre¬
pared with $15 million' for tne
delivery and eventually a final
same
period of 1954. Exports of
payment which represents the net
primary and semi-finished steel price received

tion brought about a rapid decline
in the number of people without

months

substantial

very

unsold surpluses has resulted. The

Economic Trends in Canada

without

of

up

to

Affiliated with:

Burns Bros. & Denton
Limited

Members: The Investment

Dealers' Association 0/ Canada

Burns Bros. & Company
Members:

Underwriters and Distributors
Toronto

Government of Canada Bonds

;

:

Provincial and

Treasury Bills

•

The

Toronto

Montreal

•

Stock

Limited

Exchange

Ottawa

'

Winnipeg

Municipal

Debentures

Corporate Bonds and Shares

Statistical information

promptly
Stock

on

request.

Canadian

Securities

Orders executed

Exchange through

Direct

on

our

on

supplied

the Toronto

II

u5

BUOADWAV

wilh

affiliate Member Corporation.

private wire with Goldman, Sachs & Co.
30 Pine

Street, New York
VirnW

Equitable Securities Canada
LIMITED

Members:




The Investment Dealers* Association

220 BAY

STREET

—

tobonto

^fllpEG

cc&CO.

of Canada

TORONTO, CANADA

Telephone: EMpire 6-1141

Dl.nent S<
Investment Securities

W

TORONTO

I

The Commercial and Financial Chronicle
90

.

.

Thursday, December 15,1955

.

(2614)

Continued from page

Economic Trends

COMPANY

&

MATTHEWS

★

Toronto Stock Exchange

Securities Commitfee
tants at the time of the last Fed¬
eral

The Longer-Term

Federal college

Economic

Prospects
For

Direct

with

Connections

Wire

United

is,

of

cf America

sion

examine

to

course,

useful

careful

look

tho probable

at

velopments of the

(b)

next

25

for

a

30

Already it has had a stim¬
ulating effect in focussing atten¬
the direction in which

on

moving,

are

mineral

Mutual Fund Shares

"upon

Investment

18%

Kitchener, Ontario

Telephone

reasons

has

why Cana¬
absorbed

of

percentage
product in

gross

the

Canadian

of

product

was

investment

3-5251

na¬

cur

benefitted

also

have

welcomed

DAWSON, IIANNAFORD INC.

outside

this

Most ,of

foreign

Broad

New York

,

Street

,

but

4, N. Y.

have

we

been

considerable
in

ment

BOwling Green 9-5177

renewal

see

from

Montreal

While

Xoronto

Underwriters and

welcome

we

economic

with

ties

cannot

North America.

Distributors

Municipal and

devoted

limited

be

DAWSON IIANNAFORD & CO. LTD.
Members

»

.

•

and

matter

by
to

of

..

the bill

an

the

if

»

the interest

in

artificially

curtail,

college

the reduction

.

not

low

level

completely

eliminate, the availability cf pri¬
vate investment funds which have

TRADING
DEPARTMENT
call

EMpire 3-7218

The

Population

development is creating is one
of 'the reasons behind the more

limited

73

King

Street West

rapid rate of increase in the Can¬
adian

population than in the

ulation

the

of

the period

United

Members

In

Investment

Dealers'

*

r

Association of Canada

in terms of

to. think

<

Can¬

in

commonplace

becoming
ada

Toronto, Canada

1946 to 1955 Canadian

population has increased by 27%
compared with an increase of 17%
in ithe population of the United
States for the same period.
It is

Bradley Streit & Company

•

Telephone EMpire 6-5251

pop¬

States.

COMPANY

WISENER

which

opportunities

new

our




expressed

BONDS AND STOCKS

CORPORATION

friendly trad¬

in Canadian

Increase
-

Montreal, Toronto and Canadian Stock Exchanges

J.

to

to

world
is why we have

ing world.

••

referred

United

the

much effort and money

so

multilateral

a

1

features

GOVERNMENT AND MUNICIPAL BONDS

helping to restore the fabric of

to

Corporation Securities

'

as

We live by

that

and

trade,

r

by

measure

CANADIAN

close

our

States, we are convinced that our
interests

Government, Provincial,

the

Eisenhower

"In-the

rate

received

revenues

pro-s

several objections and stated:

will

colleges from dormitory rentals.

ternational

EMpire 6-9271

Marquette 2385

the

projects

Upon signing the measure,

President

only

payable

and through various in¬
agencies.

directly

50 King Street West

d'Armes

&

above.

These

about 2%%.

neces¬

are

finally adopted contained the ob¬

jectionable

a

the United

they

housing

of loans for college housing

made

usually

its

Finance

repealed" and "That the

Nevertheless,

colleges for periods ranging up

are

Home

as

public

housing program

loans

in

recom¬

be terminated."

how¬

is,

except

for

gram

authorized by the above

to 50 years at

the

abroad in substantial volume, both

DAWSON, IIANNAFORD LIMITED
Place

be

full

are

and

to

Kingdom and from several Euro¬
pean countries.
We, on our part,
have also been investing money

507

works

Fed¬

our

Housing

Agency

lending agencies

Housing

sary

obligations of the
The

States.
Finance

ever, now

issues

Committee

Hoover
on

mentioned law to loan this money

invest¬

of

from

Canada

-

States,

glad to

Both

in

Agency to lend money for public

this

40-year loan earlier

a

The

the

focus

of

government had to pay
a
35-year loan in 1953

for

year.

United

investment

has come from the United

25

for

Home

and

country.

our

into

bring

features

mended "That the authorization of

comment

no

character

faith and credit

from

from

Our

and 3%

in¬

heavy flow of invest-

a

from

ment

out.

this

financed

Cole, Housing Adminis¬

recommended

report

government into

314%

States.

has been

condi¬

and

the securi¬
ties business and private industry

domestic savings, but we

own

that

to

socialistic

eral

national

Eighty-five percent of this
vestment

June

the bill

amendment.

other

favorable."

amendment would force

devoted to domestic
compared with 14%

in the United

,

pending before Congress.

trator,

provision.
As • our
Committee
pointed
out
last
Spring,
this

a

post-war

gross

from

terms

seem

necessary

the

period than has the U. S. invest¬
ment. For the period 1946' to 1954,

of Canada

Dealers' Association

the

of

investment

tional

King Street West

It would
is

vestment in resource development

higher

Members

the

The large amount of in¬

one

Let¬

on

June 29—while

on

Albert

wh^n loans

obtained

tions equally as

dian

47

made at that rate

sources

is

and

was

would

a,

objectionable

resources of the
the resources of water

and

Banking Committee.

sent to all IBA members
3

at

before the

be

particularly
power.

discussion

summarizing the objectionprovisions of this bill were

able

be

objec¬

provisions

by the Federal government wculd
be

forest

Committee,,

stated

new

opment of other natural resources,

Corporation Stocks and Bonds

ters

the

against the
adoption of the above mentioned

cannot

resources

Senate

a

currently

these

to

round-table

at

under

and

fix the rate at about 2%%. Loans

devel¬

the

and

years

determined

which

formula

of

appeared

cen¬

tered around the

Municipal

may

Chairman

tions

to

loans
life up to 50

a

interest

an

A

move.

development has
discovery of

post-war

and

we

considerable part of the Canadian

Dealers in

Canadian Government,

should

or

made with

-

also

funds

$300,000,000

*

The

the

in

such

That

(c)

years.

tion

authorized

from

loans

*

increase

the

of

;

opposing

Banking and Currency Committee.

$500,000,000 (subject to release by
the Bureau of the Budget); and

de¬

or

an

For

amount

longer term

our

prospects and to take

economic

may

under the program

prediction. We have, however, re¬
cently appointed a Royal Commis¬

thirty principal cities in the

States

it

run,

most difficult to make any

loans

statements

the Senate Banking and Currency
Committee and with
the House

pro¬

be made
for "other ed¬
ucational facilities" (as defined in
the amendment);
That

(a)

anything but the immedi¬

short

ate

EMpire 4-5191

Toronto, Ontario

Bay Street

housing loan

filed

the objectionable provisions of the
measure
with a subcommittee of

by providing:

gram,

.Our Municipal Securities Com-

..

mittee

census.

Title III of the Act amended the

1954.

Dealers' Association of Canada

45

page

Report of IBA Municipal

employment insurance, and these
were, I am sure, important factors
in
minimizing the recession in

Members:

220

from

In Canada

Established 1909

The Investment

Continued

89

a

popu¬

lation of 25,000,000 in the not very

LIMITED

future.

distant

of

addition

The

Affiliate of Watt & Watt

10,000,000 more Canadians to our
present population of 15,000.000,

Toronto

offers

prospects of a market large
to support a greatly in¬
creased number and variety cf in¬
enough

Members:
The Toronto Stock

Canadian Stock

Exchange

of

having next
door to us possibly 50,000.000 more
Americans, with steadily rising

Stock

Exchange

of

prospect

standards of livinv, is

Winnipeg Grain Exchange

ible long term bullish factor.
We on the North American con¬

tinent
must

80

RICHMOND

world

ST., W.

is

always

are

must

go

that

sound

on

our

and

trial

on

we

—

the

proving to

economic

that

it

so—but

EMpire 8-4831

be
us

,

for

sure

takes

that

that
is

no

un¬

action

we

detrimental

wellbeing of the other.

Watt & Watt
Member National
of

Association

Security Dealers.

to

70 Pine Street, New

Private Wires

Toronto

Inc.

York 5, N. Y.

Montreal
Buffalo
and

Winnipeg

WHitehall 4-3262

must

of

either

the
"

'

Exchange

Winnipeg Grain Exchange
Investment Dealers Assn. of

system

offers

reason

Canadian Securities

Incorporated

equalled opDOrtunities to our peo¬
ples. All of us believe this to be

TORONTO
Phone:

irresist¬

an

Exchange

Montreal Stock

technical

further

Calgary Stock Exchange
Edmonton

operating at high levels
efficiency. And the

dustries,

Exchange

Members
Toronto Stock

Bell

System

Teletype

N.Y. 1-374

to

,

„

Canada

Volume

Number 5490

182

.

.

of

-

available

this

for

there will be
the

capital

more

kind

loan

Congress

earliest

the

at

op¬

San Francisco

portunity in the light of further
its

will be corrected
session

of

Brief

follow¬

the

to

& Beane,

Construction

mentary

Public

of

Ele¬

John

and

Loans

Tax

Grants

Exemption'
Investment

be

the states

among

90%

be

thereof,

plus

of
an

total

the

additional

$200,000,000

for

Federal-aid

7474

bill

con-

(under present

projects
primary

would

have

the

Federal-aid

the rates of excise taxes applicable
to

motor

fuel,

eral-Aid
The

provide

back.

In

tires,

inner

and

for

the

primary,

in section 4 of the Fed¬

Highway

Federal

of

Act

Government

1944.

credit

to

for

states

which have been

toll

or

000,000,000

over

1957-1969,

inclusive,

terstate
Federal

any

roads

collection of tolls

of

the

appro¬

aggregate of $24,-

the 13 fiscal
for

share

90%

and the

(2)

an

ending

June

30,

1957

gress to

v: ing the year.

There were several

progressively increase the

fiscal year

$25,000,000 for each

through the fiscal

Continued

on

page

Shepard

Cleveland
Mark A. Smith

i; those decisions

F. W.

);

:

Richmond

and enactments—
Court- Decisions, Anpendix 2 and

■X State
/

Legislation, Appendix 3.

I' /MUNICIPAL,
■'?v

t

Franklin

.

.Respectfully submitted,

'>•

K

Baltimore*

•

Western New York, New York

Allen M. Terrell
Girard

-

*

Harriman

.

.[

Ripley &

-New York

bo.,

Inc.

'

:

Corn

Trust

'

Robert S. Weeks, Jr.

*

*

F. S.

E. M. Bancroft
.

•

Moseley & Co.

Boston

;

f

;

Stranahan, Harris & Co.

k

Toledo

-

/

-

^

-V".;-:" ' *

;

Jacksonville.
*

Houston

J#r

.

''

*

-'
*

.

*

.

"

'

c

•

r

'

-

.

References

•

;.

'

.

\

*

,

-

•

* '

;

•

terest to the municipal field.

Braun, Bosworth & Co. Incor¬
porated, Detroit.
"
' J
-

Fo

complete information refer

more

.

made in this Ap

ing in the U. S. Congress of in

:

-

'

are

pendix to certain measures pend¬

:

Merle J.- Bowyer
.

f

•

Reference to Certain Federal
Legislation'

'

Eastman, Dillon & Co.
Philadelphia

"

APPENDIX 1

4

:

Willard S. Boo'hby, Jr.

\

'

tl.\

-

.

Blewer. Glynn & Co.
St. Louis

-

'

;

"

Clarence F. Blewer
v'

.

Pierce,. Carrison, Wulbern, Inc

!

-

Moroney, Beissner & Co.-

-

Edward B. Wulbern

,

Henry M. Beissner

■'I

^

Exchange

Bank, Philadelphia

.

f

The Marine Trust Company of

,,

..

t

V

.

Stockbridge

•,

'

LeRoy H. Apgar.

C

Fred D. Stone, Jr.

>

J. Creighton Ri^pe. Chairman
j;,'Alfex. Brown & Sons,

.

-

K.

Angeles, Los Angeles

SECURITIES

^

*

*

Security-First- National Bank

:

of Los

-^'COMMITTEE

•

-

Craigie & Co.

should

ence

be made to

the bilh

relating to the subject.

'An

average,

based

on

total transactions lost

year

F. S. MOSELEY & CO.
...

ESTABLISHED

in the
MEMBERS
New York Slock

a

\

Here's

something

when you want to

of

>

and

MUNICIPAL
•

SECURITIES

;

BOSTON

•

NEW YORK

PHILADELPHIA

•




•

a

buyer makes

a

buy

When you
are

phone

•

When

you

chances

are

phone

us

we've got

"in stock" ourselves,

us

to sell, the chances

or

want
within

you

are

arm's reach of it.

Such speed offers many advantages to you.
This service is used
tomers.

the sale will be made before you

Phone

up.

to buy, the

what

Why don't

us

freely by

you use

our cus¬

it too?

collect, State 2-9000.

paper

CHICAGO

SPRINGFIELD

ought to know

Right here at the Continental Illinois
you have one of the largest, readiest,
primary markets in the world.

hang
commercial

you

buy—or sell—a block

of Governments.
•

CORPORATE

sale,

Continental Illinois

Midwest Stock Exchange

Underwriters and Distributors

a

big high - speed Government bond market at the

American Slock Exchange

Exchange

Boston Stock Exchange

seller makes

1879

INDIANAPOLIS

WORCESTER

CONTINENTAL ILLINOIS NATIONAL BANK
and

Trust

Company of Chicago

Member Federal Deposit

Insurance Corporation

year

ending June 30, 1969) for projects

Prescott, Shepard & Co., Inc.

pf importance and interest to the
If municipal trade in both. catego; ries. Your attention is directed to\

de¬

annual authorization by a total of

-

Robert O.

year

clares that it is the intent of Con¬

islation enacted in the states dur-

■>/

state

(and

Co.

Denver

y court decisions rendered and leg-

In¬

appropriation

Ray L. Robinson
&

years

the

$725,000,000 for the fiscal

highways

on

camel-

Highway System with the

project and

quently built. Present law forbids

proj-

on

share 10% of the total cost of any

subse-

are

(1)

an

project and the state would pay
the second 50% (this would continue the present 50-50 formula
tor these systems),
The bill does not authorize

tax

new

priation of

would

Pay 50% of the total cost of any

a

general, this bill would

authorized

have

funds

60% and the states 40%

Garrett-Bromfield

fi¬

by amending

to

of

law the Federal Government pays
on

and

provisions of the Inter¬

not less than
lands

amend

to

tubes, and trucks and buses, and

set forth

unre-

public lands and non-tax-

able Indian

Chicago

the States

appended to this Report
brief
references to various

bill,

anyproj-

served

Inc.

a

the Interstate Highway Sys-

would

re¬

nal Revenue Code of 1954 to rai$e

states in accordance with formulas

under

R.

excise tax

secondary and urban systems
be apportioned among the

appor¬

taining unappropriated and

The Illinois Company,

Also

y

would

Spokane

Court Decisions and Legislation

,

secondary

would

percentage in certain states

William N. Murray, Jr.

in

funds

Foster & Marshall

gations.

are

cost

John K. Marshall

Companies

on

tern

Barret, Fitch, North & Co.
Kansas City

divi¬

for

Federal-aid

the

These

formula in section 2(a) of the

ect

Joseph M. Luby

Derived from Tax-Exempt Obli¬

.

t

of

1961

and the Federal share of

Memphis

ects.

(5)

1960

These

Works

extensions

,iy

Co.

Union Planters National Bank

Related Proj¬

Irrigation and

dends

&

Nuveen

House

highway system in urban areas
and for projects on
approved

•

tioned

Marketing Facilities for Per¬
ishable Agricultural Commodities.

for

2,000,000,000

the

Public

on

This

1958

James C. Lancaster

for

Federal

(c)

1959

2,000,000,000.

1955,

nanced the program

secondary system within urban

1,250,000,000

Chicago

Federal Mortgage Insurance

(4)

$300,000,000 for projects

the

on

through urban areas) there

1,500,000,000

Heimer-

Chester W. Laing

Facilities.

(3)

(b)

extensions

H.

Act.

tem.

in¬

$1,000,000,000______1957

G. Ileimerdinger

Walter, Woody &
dinger, Cincinnati

School

Secondary

and

Committee

ment

over

Fiscal Year

21,

the Federal-aid

on

Amount

July

$400,000,000 for projects
primary sys¬ supplement the Federal-Aid Road

be authorized:

Pierce, Fenner

New Orleans

1-aid

e r a

(a)
on

follows:

(including

d

e

-

On

areas.

Federal Highway Program.

(2) Federal Financial Assistance
for

thereof
would

Merrill Lynch,

John

(1)

as

F

ported favorably without amend¬

would

1957-1961,

with

follows;

aggregate of $12,250,-

years

System

Ford T. Hardy

ing bills pending in Congress will
be found in the Appendix to this
Report, No. 1:

,

it

constructed

91

funds.

In each of the five fiscal
years there would be appropriated
$900,000,000 to be available as

(1) For the Interstate Highway

Singer, Deane & Scribner
Pittsburgh

Congress.

reference

but

Highway

*

system.

Charles N. Fisher

during the next

fiscal

clusive,

Chicago

sincerely hope that these obI jectional provisions in the law
"

the

Julien Collins & Company

administration."

program,
an

000,000 in Federal-aid grants

Milton S. Emrich

We

'

highway

Interstate

(2)

(S. 1048). This bill
provisions for fi-

authorize

American Trust Company

study ppd of actual experience in

no

the

on

System).

nancing the Federal funds for the
Empey

Lester H.

thfe?;Act will be corrected by

the

1955"

contained

.

Paul

St.

of

Act

Mannheimer-Egan, Inc.

.

ects

May 25, 1955, the Senate
passed the "Federal-Aid Highway

Richard G. Egan

substantially less in

aggregate.

Highway Program

On

New York

"It, is>»my hope that the defects
in

Federal

Phelps, Fenn & Co.

being

of

(2615)

S. Brewer

Orlando

begun
to
flow toward
college
housing. The result would be that
instead

Financial Chronicle

The Commercial and

.

92

•

92

'

•

'

•

The Commercial and Financial Chronicle

(2616)

.

.

jrom

of constructing all the projects re¬
ceiving Federal assistance within

91

page

only

issued in the period July 1, 1956-

gage

that state.

Continued

June

ployed

Title

Report of IBA Municipal

II

($217,500,000) and for projects on
extensions of these systems with¬
in urban areas ($180,250,000) with

bill

the

Federal

state

share

50%

share

50%

the

and

gress

of any project.
bated

This bill was de¬
voted on in the House,

and

but it failed to pass

H.

Federal

by

in

Federal
issue

which

bonds

by

guaranteed

would

the

the United

and would not constitute

(1) Title I would authorize ap¬

propriation of $400,000,000 in each
of the four fiscal years

States
debt

a

such

grant basis.

a

educfational
could not exceed 50% of
to

Payments
Financial

Assistance

for

agency

of Public Element-

the

School

tary and Secondary

hearings

were

state

a

constructing the

cost of

total

projects to receive Federal assist¬
ance in
that state. Thus, Federal

Facilities

Although

grants would have to by matched

con¬

ducted in both the Senate and the

by

House

state-wide basis.

on

Federal

proposals to provide for
financial

assistance

ties, it
the

state

secondary school facili¬

was

House

on

Educa¬

construction

tion and Labor reported favorably

projects

some

Federal

receive

amounting to

not until July 28 that
Committee

for

to

funds on a
It would be per¬

local

and

state

missible

for

the construction of public elemen¬

tary and

funds

of construction

cost

facilities
sources

involved

interest

rate

Obligations purchased

this Title would

more

than 50%

of

costs

in

those

a

funds

of

proj¬

ects; but Federal Assistance could
not

exceed

50%

of the

total cost

un¬

would

bear

interest

at

rate

a

equal to the quarterly rate which
the

of the Treasury
specify as applicable to the
calendar
quarter
during which
Secretary

shall

obligations are purchased by the
Commissioner, plus % of 1% (the
quarterly rate would be deter¬
mined

the

by

Secretary

of

the

aver¬

yield to maturity, on the basis
daily closing market bid quota¬

age

tions

of

prices during

the month
preceding such calendar quarter,
on all outstanding marketable ob¬
ligations of the United States hav¬
ing

maturity date of 15

a

years

or more

mated average yield to the nearest

There would be estab¬

% of 1%).
lished

as

revolving fund

a

"School Bond Purchase Fund,"

available

be

beginning

1,

authorization for

1956,

with

may

of

obligations
shall

Title

Title

III

exceed

authorize

would

the

Commissioner to enter into agree¬

agencies

RESERVES:

INCOME:

A

objectives of

Investment

iSeries B-l

iSeries B-2, B-3, B-4,

iSeries K-2,

Company seeking

long-term CAPITAL

GROWTH

and

certain TAX BENEFITS under

K-l, <S~1 and iS-2
GROWTH:

fully managed Canadian

1

5-3,5-4

Canadian Laws

(the

school financing

bill

contemplates

only a single such agency in each
state) under which the state and
the Commissioner would each ad¬
to

vance

"basic

a

amount

an

With tlie investment

with state

ments

reserve

fund"

equal to lk the maxi¬

annual debt service

mum

on

obli¬

gations issued by the state school
financing agency.
There would
also
of

be established for each

obligations

issue

"supplemental

a

re¬

your

local investment dealer

Tke
50

Congress Street

Boston 9, Mass.

in

of 1% of the

obligations as part of the
for use of the facilities
the

with

such obligations.

of

proceeds

If there

set

in¬

were

permit

eligible

such

for

obligations of

securities

of

which

the

on

any

exhaustion

of

the supplemental reserve the basic
for

payment

service.

Both

of

the

the

available

annual

state

debt

school

fi¬

BULLOCK FUND

nancing agency (within the limit
of appropriations made available

CANADIAN FUND

for the

purpose) and the Commis¬

sioner

would

DIVIDEND SHARES

replace

to

amounts withdrawn from the basic
reserve

NATION-WIDE SECURITIES




agree

could

fund.

be

Federal

made

under

such
holds

advances

this

title

BALANCED

by loan, grant
for

distinct- unit of
or a rehabili¬

or

existing

irrigation

laws and

(ii) similar undertaking

proposed to be constructed by an
organization."
Any organization

desiring to avail itself of the ben¬
provided in the Act would

efits

submit

a

proposal to the Secretary

with respect to the construction of

project.

a

An

eligible

Insurance

for

Marketing Facilities for Perish¬
able Agricultural Commodities
H.

R.

4054

would

"Marketing

provide

Facilities

tion would be
agency,

vision

Improve¬

States

United

under

ties of

a

mu¬

the

creation

modern

wholesale

dling

and

and

development

efficient

markets

for

perishable

of

commodities.

It

public

the

han¬

agricultural

would

create

laws.

of

Agriculture

insure

to

authorize

any
a

eligible

market

Denver
New York

on

could

or

not

The Act would
be

may

of

necessary,

exceed

$100,000,000 to
provisions of the

the

out

Act.

under

Contracts

the

Act

set

out

the

organization of (1)

plan

a

lent it in not

of

must

repayment

more

by

the

than

sums

50

years

facility,

a

respect of which
insure

have

exceed
of

the

Act

amount

an

total

could

cost

the

of

that

the

maturity not
from

the

shall

it

exceed
of

eli¬

an

require¬

exceed
is

bear

40

a

years

insured

and

interest

at

not

annum

per

the

for

of
fa¬

mortgage have
it

4%

of 85%
market

include

to

date

exceed

not

equivalent

mortgage

ments

to

made, shall not

Requirements

gible

that

commitments

been

$100,000,000. The amount
insurance contract made

any

under

on

the

principal
any

under

obliga¬

time.

one

the

the

Act

Secretary would collect from the
mortgagee an initial charge of
of

1%

of

from

the date when the

mortgage

thereafter
of

the

maining
charge
H.

charge of

a

principal
unpaid
becomes

R.

4045

on

Committee

July 30, 1955.
stated

report

that

The Committee
the

bill

"em¬

in

each

of

160

the

irrigable

24 Federal Street

of

acres;

interest
ance

an

loan

(2)

the

on

of

unamortized

at

a

rate

H. R. 5881

passed the House

your

was

on

July 28 and

sent to conference to resolve

the differences between the House
and

Senate.

conference

journed

Russ

Investment Dealer

SAN

or

on

May 26, 1955. It passed the Senate

The
when

and

bill

retains

Building

the above.

was

still

Congress

FRANCISCO

London —Montreal

Prospectuses from

bal¬

determined

as

&.HOWARD

1924

in

above.

INCOliPORATED

BOSTON

(3)

appropriate portion of

STOCK EUND

ESTABLISHED

and

any

St. Louis

BOSTON

is

irriga¬
particular

project involving
an
allocation to domestic, indus¬
trial, or municipal water supply,
or commercial power produced as
an element of the project and in¬
cidental to its full development,
case

EATON & HOWARD

EUND

which

to land held in private own¬
ership by any one owner in excess

with amendments

Agriculture

loan

furnishing

year

re¬

the

time

reported favor¬

on

to

benefits

tion

the

of

attributable

the

ably without amendments by the
House

share

rata

in

obligation

at the
due.

was

States outstanding at
beginning of the fiscal year
preceding the date on which the
contract is executed, on that pro

the

annually
lk of 1%

and

United

the

obligation

of the principal

the

Angeles

San Francisco

grant,

both

principal
benefits of the project first be¬
provided that the aggregate come
available;
(2) interest, at
amount
of
principal obligations the average
rate, as determined
outstanding at any one time on by the Secretary of the Treasury,
all mortgages insured under the
paid on the long-term interestAct, and on all mortgages with
bearing marketable securities of
mortgages

-

Philadelphia

finan¬

project

appropriation

as

to

not

Federal

in

of

the

sums

carry

the

the

loan,

a

combination

but

has

with

Federal

participation

the form

in

a

marketing facility mortgage insur¬
ance
fund
of
$25,000,000,000. It
would authorize the Secretary of

water

which

contract

cial

or

conservancy

district,

to

Act" to assist municipalities
political subdivisions of states,
public agencies, and instrumentali¬

states

a

organization

capacity

and

more

depart¬

a

association, an agency
created by interstate compact, or

ment

or

or

irrigation

reclamation

one

or

political subdi¬

or

thereof

district,

similar

the

state

a

"

Chicago

organiza¬

users'

Mortgage

EATON

Los

for

project,

authorized to be constructed pur¬
suant to the Federal reclamation

Managed by

1894

"project"

undertaking

an

Federal

,

Bullock

Established

both to

(or

a

complete, irrigation

any

Ltd.

Boston

by
as¬

tation and betterment program

ment,

EATON & HOWARD

Calvin

such

not exceed 10% of its paidunimpaired capital stock, plus
10%
of
its
unimpaired surplus
fund).

outstanding at

be

bank

in

insurance

would

^y
ac¬

must

tion

fund

been

amount

the

and

counts

For

reserve

have

own

financing agency would draw on
the supplemental reserve to pay
After

agencies if

their

issue of obligations the state school

deficit.

deal

banks to

investment

for

banks

amount

the

"(i)

Title III for such
(if such obligations

obligations
are

the

service

for

under

up

to

debt

organization

would

supplement

financial

Federal

undertaking

bill

school financing
reserve
fund shall

a

authorizing

an

to

underwrite

and

sufficient funds available to meet

annual

the

state

cility.

constructed

Keystone Company of Boston

Statutes

tion each year of

payment

of

315

would

an

amend section 5136 of the Revised

the

issue of

or

Section

for

reclamation- laws

sistance

without

needs

5881

local

a

further Federal assistance."

serve" established through collec¬

original principal amount of .each

Prospectus from

their

meet

R.

Federal

of

purchased
not

to

H.

the

posi¬

and

Grants

and

Loans

1

Irrigation and Related Projects

neces¬

thereafter, but with the limi¬

this

states

Federal

the

on

"FL

,

such

$750,000,000.

of Canada? Ltd.

tion

the

districts will be in

pending

in

be

as

which

school

is

calendar.

nicipalities, pu b 1 i c corporations
and boards, and private enterprise

additional

amount

Custodian Funds

after

period

4-year

a

bill

House

such

initial appro¬

an

in

overcome

can

em¬

with great success in the
Federal housing program."

exceed $5,000,000.

and

sums

a

to

fiscal years

four

for

July

priation of $300,000,000

under

Keystone Fund

be

by adjusting such esti¬

tation that the aggregate principal

1

principle of mort¬

same

insurance that has been

This
Educa¬

on

backlog of needed classrooms

from the first day of such

month and

sary

eystone

not

amount

The House Committee

be

required
repaid within 30 years and

be

to

other

applicable to
purchased under this

obligations
Title."

from

reasonable terms and

upon

the

at

the school

of

of

on

aggregate
to exceed

an

by a public offering that "The committee believes that
obligations, "to obtain the with emergency Federal assistance
necessary
to finance the as provided under H. R. 7535 the

Treasury by estimating the

,

Construction

unable,

are

Funds would be
allotted among the states on the
basis
of
school
age
population.

obligation of the United States or
agency
or
instrumentality
thereof other than the Highway

Federal

beginning

agencies

July 1, 1956 for payments to state
educational agencies for assistance

or

any

Corporation.

Federal assist¬

of

types

ance.

be

not

administered

be

to

Commissioner of Educa¬
provide three

the

general

by authorizing a new
Highway^ Corporation to

program

Assistance

Construction
1955"

of

principal

in

evidenced

der

the

provide

would

7535

tion. The bill would

bills introduced in both the House

and the Senate, would finance

in 1956.
R.

Act

embodied

Program,

subject has yet been

"School

the House.

Eisenhower's

President

Highway

by the House and no

reported in the Senate, but it ap¬
pears that H. R. 7535 will be the
basis for further action by Con¬

total cost

of the

on

bill
this

this

on

1960,

braces the

tion and Labor stated in its report

as

provide such assist¬
No further action was taken

ance.

the

($326,250,000),

system

way

30,

obligations

to

$6,000,000,000.

of such

Federal-aid secondary system

the

authorize

respect

where

H. R. 7535 to

the Federal-aid primary high¬

on

would

with

Commissioner to purchase obliga¬
tions of local educational agencies

Securities Committee

•*.$.

Thursday, December 15,1955

.

that

in

ad¬

status

Volume 182

Number 5490

.

.

.

for further action at the next

The Commercial and Financial Chronicle

ses¬

Tax

cluded

as

appendix in the
Committee.

an

Interim Report of the

sion of Congress.

City

Orlando

State, The
Florida Constitution provides that
Investment Companies Derived
no bonds of political subdivisions
from'Tax-Exempt Obligations
H. R.{5211 would exempt from of the state qan be issued until
Federal income taxes dividends they are approved at an election
Exemption for

Dividends

of

paid ' by - regulated
investment
companies whose income was de¬

prived entirely from tax exempt
governmental obligations.

of

of free-holders held for that pur¬

The

pose.

this

construed
to

bill

referred

was

the

to

House Ways and Means Commit¬

action was taken on
the bill''by that Committee.
tee, but

To
i

no

R.

of the

would

5212

the

amend

paragraph of Section 5136

Revised

Statutes

(12 U. S.

i C., sec. 24)

by adding at the end
the following new sen¬

thereof

contained

herein

strictions

and

limitations

"The

tence:

re¬

to

as

dealing in, underwriting, and pur¬
chasing securities shall not apply
to securities of any regulated in¬
vestment

Internal Rev¬

the

of

851

section

Code of 1954,

enue

defined in

as

company,

bond

I

bill

This

the

to

and Cur¬

Banking

of

Committee

of

Florida

in

the

approved
tion.

at

The

nor

to

certain

•

!

report, refer¬

in

this appendix

decisions in the

Mates, handed down during the
year, considered of general interest to the municipal trade or of

j special significance locally.

The

based
"upon
the
Committee's
understanding of the situations and are
following

;

comments

reference

for

'Counsel

are

"

in

consulted

be

for

instance

each

only.

purposes

should

specific

-mation.

infor-

"

f

CALIFORNIA'

authorized

the

issuance
revenue

Davis, et al.,

as

bond holders

a

committee representing holders of

dormitory

revenue

cation,

v.

State of Idaho.

State
as

In 1950 the Idaho

of

Board

Education

acting

the Board of Trustees of NortnIdaho

ern

issued

and

bonds

enue

College of Education
sold dormitory rev¬
and a dormitory was

constructed

the

with

therefrom.

proceeds

The

building is the
State of Idaho.
Net incomes from the dormitory
property

of

other

lege

the

were

dormitories of the

col¬

pledged in payment of
the bonds. In 1951 the state leg¬

County

of
San
Francisco
had
general obligation bond
issue for the purpose of providing
off-street parking facilities.
The

islature

voted

priation for operation of the col¬

a

City proposed to use a portion of
these proceeds for the purpose of
acquring land which would then
be leased to a private corporation
which

would

same.

in

The

construct

turn

thereon

garage

that

held

court

a

the

operate

and

this

'

was

not

a

proper

that

the ^reason

for

public

purpose

under

;

the

plan proposed there would be no
control by the public agency over
the rates charged by the private
operator.
FLORIDA

j-

Decision by the Supreme Court

Florida

Feb.

'•

of

!

Leedy, Wheeler & Alleman, Inc.,
et al. vs. Okaloosa County, Fla.

,

The

court

on

in

this

1955

4,

case

in

concluded

that fiscal advisors for the County
could
<

as

recover

a

fee

for

services

fiscal advisers under their

tract

had

with

the County

purchased

the

con¬

after they

bonds of

the

County St competitive * bidding.
The opinion in this case was in¬




be

delivered

the

the

to

to

state

file

affidavit

an

in

held

for fu¬

circuit court to compel the court
to delay a jury determination of

reimbursement from

sources

land- value

State

ture

Treasurer

and

pledged for payment of the bonds.
The

pleted,

for

long

as

two

as

years, or

State

honor

Treasurer

refused

claim of the bank

a

to

The

as pay¬

until the road was com¬
whichever was soonest.

Court

of

Appeals held

that

ing agent and to transmit to the

the amendment violated the state

bank the money for payment of
certaijTbonds and the accrued in¬

citizens

terest.

petitioned

decision does not affect the valid¬

Supreme Court of Idaho for

ity of the Kentucky Turnpike
Act, the validity of which had
previously been upheld.

the

The

plaintiffs

alternative

an

writ

of

Constitution

mandate

compelling the defendant as State
Treasurer to transmit to the bank
to

Matlock

pay

in

show
do

cause

The

so.

the

why

she

should

preme

Court

denied

the

writ

but

County

not

the

motion

ment

made the alternative writ perma¬

Treasurer

that

was

the

act

creating the Dormitory Bond Re¬
demption Fund was unconstitu¬
in

the

that

state

it

loans

to

corporations

the

credit

individuals

and

The

purpose.

held

and

U.

S.

history

and art for purpose of
maintaining such collection in a

and

for

not

was

act

Court opinion on de¬
segregation does not affect this
act.
'
\
' '/■;
City of Tulsa v. Williamson, At¬
torney General (Okla.), 276 P.
(2d) 209, held that purchase by
city of collection of American

principal objection by the

State

bond

a

museum

Supreme
the fur¬

of

constitutes

the

purchase

lege

did

the

and

operation
from

as

the

about

make

not

purpose.

King
(Okla.),

v.

City
of
McAlester
273 P. (2d) 139, held
that under requirements of Sec¬
tion 27, Article 10 of the Consti¬
tution of Oklahoma,
when the
question of issuance of bonds for
city improvements is submitted at
a special election called for such

the

election an
proposition also
submitted, if the bond issue
question receives a majority of
the votes cast upon such question
and

purpose

at

additional related

is

but

less

than

mathematical

a

majority of all votes cast in such
special election, the bond issue
carried by a majority vote al¬
though it did not receive a major¬
ity of all votes cast in the elec¬
tion.

-

TEXAS
In

McKinney et al. v. Blankenship et al., plantiffs sought an
injunction to restrain the alloca¬
tion

or

expenditure of public free
for integrated

school* funds
schools.

The

Supreme

such.

ceased

Consequently,
of

until

1951

the college
did not have any students and
did not derive any revenue from
the dormitory constructed from
proceeds of the bond issue or
from

its

1,

1955,

dormitories.
In;
legislature changed j
the name of the college and'ap¬
propriated funds for operation of
the college. The legislature by a
separate act created a "Dormitory
Bond Redemption Fund" in the
State Treasury and appropriated'
$100,000 to be disbursed by the
other

1955 the state

State
with

This

in

Treasurer

the
act

provisions
directs

urer, upon

monies

pay

interest
have

principal

of

the

State

act.'

Treas¬

notification that avail¬

able

which

the

accordance

are

due
not

insufficient
upon

matured

matured

to

bonds
and

bonds, to
transmit,
from
the
Dormitory
Bond
Redemption Fund, to the
paying agent funds sufficient to
on

Court

of

Texas affirmed the decision of the

trial.court denying the injunction.
The

Supreme

Court

concluded

(1) that Section 7 of Article VII
of the Constitution of Texas is

un¬

"public utility" within con¬
constitutional and void to the ex¬
stitutional
provision authorizing
therance of education is univer¬
tent that it requires segregation
an indebtedness upon approval of
sally regarded as a public pur¬
electorate for purpose of purchas¬ of white and negro students in the
pose, and
that the act was not
ing or constructing public utilities, public schools and (2) that public
invalid merely because the obli¬
and
therefore
municipality had
funds could be used in paying
gation of the state is moral rather
right, by proper vote at legal
than
mandatory
or
because
a
Continued on page 94
election, to issue bonds for pur¬
private individual or organiza¬
tion may benefit thereby.
pointed

that

out

a

KENTUCKY
A

decision

State

Court

the

by

of

Kentucky

Appeals

affirmed

opinion

an

by
the
Franklin
County Circuit Court which held
invalid

vent

1954

Kentucky
Law
designed to circum¬

a

which

was

the constitutional d°M

by creating

Authority
powered
of

issue

to

roads

limit

Kentucky Highway
which would be em¬
a

which

bonds

revenue

for construction and

improvement

would

leased

be

to the State

Under

*,way
appro- *
turned

college

summer

Sept.

an

93

of purchasing such collection

pose

for such

upheld

Supreme

nent.
The

County
Wagoner
No. 36608, opin¬

(Okla.)

of

rendered

case

2,
1955
quash and

to

of

Board

Feb. 15, 1955.
This
constitutionality of
county separate school improve¬
ion

Su¬

Nov.

on

v.

Commissioners

Supreme Court issued

alternative

section guaranteeing
speedy jury trial. This

a

OKLAHOMA

paying agent sufficient money
the principal and interest
conformity with the act or

as

bonds of 1950

College of Edu¬
Moon, Treasurer of the

and

Ross.

v.

1954

of Northern Idaho

County of San Fran¬
The
City and

City and
cisco

shall

Court

to $100 million in

The

Fund

public

Georgia handed down a deci¬
in
September holding that
the Georgia Rural Roads Author¬
ity Act is valid and constitutional.

suits.

amendment would have permitted

sion

Act

condemnation

re¬

payments
by
the
Dormitory Bond Redemption

of

The Supreme Court of the State

up

Bonds

from

tional

*

'

up

IDAHO

in the

court

making

GEORGIA

Court Decisions

to

the

guarantee

bonds.

APPENDIX 2

made

the

tired

power

payment of deficits.

or

of

are

elec¬

that

was

of the city
was
in
no
manner
pledged or
obligated to pay the certificates

This

stated

that

case

free-holder

a

theory

general1 taxing

mittee.

As

named

improve¬
ments, payable from special as¬
sessment
liens
on
the
abutting
property benefited by such im¬
provements, would not have to be

of the House. No action was
taken on the bill by that Com¬
rency

ences

The

obligations.

such

pay

of

referred

was

liens.

the

from special
Supreme
has
recently

payable

which invests

(a) of such code."

103

■(

was

where

even

bonds issued to finance

solely in obligations exempt from
Federal income tax under section

t

election

an

ruled

seventh

<

hold

Court

H.

ad

estate, i.e. the
type of bond known as a "general
obligation." It was necessary to

Exempt Government Bonds

v

an

real

on

assessment

in

provision to apply

bond payable from

any

School Bonds and Other Tax

,

p

t

Investment

Encourage

previously

had

court

valorem tax

This

v.

(2617)

roads

Highway Department.
plan the State HighDepartment
would
have
the

the Authority the
improved and the

to

over

to

be

improved roads would have been
leased

back

to

the

state

for

A

suf¬

Rentals
from

would

an

have

been

because

it

would

permit

commitment Of the state to
in

limit,

a
debt,
the''Constitutional1

of

excess

the

and

court

GROWTH of

l°Stal audjneome;

in¬

was

possible

fiTteiit

The Court of

Appeals held that the act
valid

paid

earmarked portion of the

state's gasoline tax.

gecurities

portfolio

ficient rentals to retire the bonds.

,

particularly

noted that the lease would be for

period of years with an absolute
agreement on the part of the De¬
partment of Highways to pay the
a

rental
may

out

be

validated

of

such

revenues

available to
law

had

it.

no

The

as

toujjj

prime objective
turn asl»r8
without

in¬

connection,

with the Kentucky Toll Road En¬

.

abling Act under which the state
is

building
The

a

turnpike.

Kentucky Court of Appeals

declared

unconstitutional

a

1954

amendment to the State Turnpike

Enabling Act, which amendment
would have permitted delays of
up

A prospectus
obtained

to two years in jury trial land

TIIE

on

PARKER

200

each fund

or

CORPORATION

CHICAGO
120

Broadway

LOS ANGELES
450

be

Berkeley St., Boston, Massachusetts

NEW YORK
61

may

from investment dealers

S.

Spring St.

S.

LaSalle

Mercantile

Securities

LYNCHBURG, VIRGINIA
16

St.

DALLAS

Yista Avenue

Bldg.

J

_

94

The Commercial and Financial Chronicle

(2618)

Continued

jrom

The

debt.

93

page

title

which

in integrated

schools.
VIRGINIA
Shelton

Constitution of Virginia and Code

School
Hanover County has ap¬

Board of

Voting for

issue

bond

was

a

to be uncon¬
stitutional.
Judge Bazile, in the
Circuit Court of Hanover County

schools

segregated

(Va.), on May 13, 1955, concluded
enjoin the school board from
issuing the bonds because (1) un¬
to

decision

the

der

of

the

S.

U.

Supreme Court schools will have
to

be

to

use

operated as non-segregated
schools and (2) it would be illegal
the proceeds from the bond

for

issue

when

non-segregated

the

issue

bond

The

July 14, 1953

on

schools

was

ap-

give the state the right to take
possession of property after a
short period of negotiation with
the owner.
The price to be paid

to

_

by the state was to be determined
eventually in a jury trial, but
meanwhile the highway project
could be started. The court held,

vio¬

effect, that the procedure
lated the state
constitution
in

would

by
tl^e
Wisconsin on

be¬

of

unlawful

April

whereunder

build

money,

trict

The dis¬

if

full

annual

make

to

was

under

pay¬

lease

25-year

a

to

The company was

the building
payments were not made. The
take

to

empowered

with

school

school and lease

a

retire the loan.

investment

School

a

building company was to borrow

ments

mutual, open-end, diver¬

5

plan

proposed

a

Richmond

the

involving

Supreme

it to the school district.

sified

that

concluded

court

plan

any

management dis¬

A

recent

the

decision

by

the

Su¬

Court of Wisconsin upheld
of a plan

constitutionality

whereby quasi-public building
and

prospectus

from your investment

dealer

and

the

state

the

neither

nor

becomes

investable

The

accounts.

State Legislation
The legislatures

states

affecting muni¬
cipal financing, considered of gen¬
eral
interest
to
the
municipal
trade
or
of
special significance
locally. The comments are based

the

For com¬
plete information reference should
the

to

full

text

CALIFORNIA
Act

Code

adopted

1194.5

in

nies to make

in

ments

stale,

city,

county

county,

of

or

state,

any

by

or

any

ity

and

or

or

of such

bonds.

the

less.

or

bonds

The

corporations will finance the con¬
struction of public buildings to be
Private build¬

leased to the state.

ing corporations are established
by the state with state officers in

relief in connection

adooted

the

con¬

for

ment

Board

tion,

by

Directors.

the

issuance

of

these

of

removes

Board

the

necessity of referring to the

Representatives

of

Directors

of

the

If

the

an

ac¬

with

the

in

pleading is

or

be

to

the

Metropolitan Water Dis¬
trict and opposed vigorously this
method of raising money.
After

action

file

to

court

the

of

pro¬

the party

or

application

clerk

such

shall

Court

person

such

the

which

the

a

Suoreme

for

making

staff

and

to

or

vide

the
municipal bond business in Los
Angeles appeared before a special
group composed
of members of
bonds.)

file

other

pleading as a
defense to an action, questioning
the validity of such a final decree,
obligation or proceeding, the Act
further provides
that the order

of the total

of

or

therewith.

granted by

is

Supreme Court to institute

public vote require¬

no

application

an

12 years

over

ordinance

an

of

issued

be issued on the author¬

(There is

operated by the issuer
This Act

territory,

of three-fourths

vote

producing utility,
activity owned, con¬

trolled,

of

vote

revenue

facility,

is

and may

or board of such city,
county, or city and county, etc.,
payable solely out of the revenues
a

The Act would

original jurisdiction upon the
Supreme Court of Florida over

of the assessed value, which¬

shall mature in not

any

city
by

thereof.

ance

fer

bonds

application for leave to file such

1%

compa¬

issued

of

proceedings for injunctive

annexed

from

ever

department

from

1996)

issue

obligations

trict

funds invest¬

excess

District to

other

or

an
amount up to 50% of the
unpaid special taxes due the Dis¬

Insurance

insurance

bonds

Water

the Supreme

tificates

in

California

the

of

allow

to

(Senate Bill No.

>

1

counties,
municipalities,
taxing
districts, or other political dis¬
tricts, subdivisions, agencies.' or
public bodies of the state, or any
proceedings authorizing the issu¬

of

District Act allows the Metropoli¬
tan

by
•

Court of Florida,
the validity of any
final decree validating bonds, cer¬

legislature.
Act

'

-r

questioning

terminate

regular session

'

An Act amending Section 75.09
the Florida Statutes, effective

of

The

amending the Metropolitan Water

measures.

Section

1959

the

An

the

of

shall

bonds

revenue

after

A

May 26, 1955, prohibits proceed¬
ings in any court, without leave

be used to

may

construction.

'

"•

of

authority to issue certificates and

the Committee's understand¬

made

both)

the

finance

proposals.

FLORIDA

bonds (but

revenue

or

not either or

ing of the legislation.
be

bill

buildings under this Act must

certificates

of the enactments

upon

op¬

such

,

state

were in session during the
Referred to below are some

year.

A number of bills were in¬

;

specifically approved by the
legislature and the state leg¬
islature also must provide whether

our

Committee
Assembly.

by the

the legislature but was vetoed
the Governor.

be

of most of

opposed

authorizing such financing passed

public sale. The ac¬
quisition and construction of pub¬

lic

the

posed

bonds will

revenue

the

passed

was'-Vigor¬

nicipalities and the Committee

funds

available in any of its investment

sub¬

operate

to

Bridge
this bill

to
permit theuse of
lease-purchase financing by mu¬

Department of Fi¬
paid for by that De¬

with

partment

but

troduced

the

and

nance

prop¬

any

Bridge and high¬

and

it did not pass the

(3)

plus interest.
be issued, in

divisions.

a

der the Wisconsin Constitution.

preme

Information

liable

revenues

alone

bonds,

revenue

bonds of

mortgage and
title to state land was illegal un¬

giving the lender

company

cretion.

corporation

the

(Assembly Bill No. 2839) amended

decision

District

A

the

be

general
erty of

trail

jury

a

held

HUDSON FUND, INC.

and

suf¬

amount

effect, to

must precede
acquisition of contested land.

cause

Court

j}

ously

the

and

years
an

payments,

of Wash¬

Court

Supreme

ington held invalid the immediate
possession law which was enacted
in 1951 to expedite highway proj¬
ects.
The invalidated law sought

A

{J

29
of

be

The certificates will

APPENDIX 3

WISCONSIN

v,

will

building corporation failed to meet

An

,'/

exceeding

lease

Senate,

ficient to repay the certificates or

WASHINGTON

school

prior to the decision of the United
States
Supreme
Court
holding

not

district

way

.Golden. Gate

period

by the state agency for a

the
preceding

from

the

state

liability for the bonds of

the Golden Gate

con¬
build¬

be offered at

Section 22-221 provided for segre¬

gated schools.

in

to

certain

of

the

over

or rev¬

for the

pay

The building will be leased

ings.

jected to the creditors' claims.

decision.

pealed this

distinguished

referred

to

paragraph because no state prop¬
erty could be foreclosed if the

that the

understand

We

is

case

case

proved with the belief that pro¬
ceeds would bo used for the con¬
struction of segregated schools.

County

Section 140 of the

Board.

School

|

Hanover

v.

struction

state owned

on

The court held that this

the state.

Seen ilies Committee
of teachers

located

are

bonds

enue

land and will rent the buildings to

Report of IBA Municipal
salaries

non-negotiable certificates

corporations will hold
completed buildings

the

to

Thursday, December 15,1955

..

.

filed a bond to indemnify
public body which authorized
obligation called in question

extended

Savings
ments

Bank

Code

of

invest¬

by insurance companies in
the above political sub¬

An Act

ernment

53651

eligible

the Gov¬

of

which

Code

to

collateral to

as

refers

se¬

county and local public de¬
posits. The Act, in effect, provides
cure

for the

tion

of any

use

decided

this

general obliga¬

bond

revenue

or

of

the

all

for

and

damages

expenses

discussion, during which caused such public body in any
the Municipal dealers and a rep¬ manner by the institution of such
resentative of O'Melveny & Myers action, or the filing of such plead¬
presented a united front in oppo¬ ing as a defense to an action, in
sition, the District, because of the event that such applicant is
their peculiar internal problems, not successful in such action or

(Assembly Bill No. 3690)

revises Section

bonds

for

Cal¬

nevertheless

to

pursue

defense.
IOWA

course.

bill

A

introduced

the

in

Iowa

state, thereby permitting circum¬

135 S. LaSalle St.

115

Broadway

New York 6, N.Y.

Chicago 3, III.

Act of 1955 allows the State Board

17) authorizes
the sale of $200,000,000 State of legislature would have authorized
to
acquire "pro¬
California Construction Bonds, not municipalities
less than $60,000,000 of which will jects" which were defined to mean
and any building or
be spent for major building con¬ "any land
other improvement thereon, and
struction, equipment, and site ac¬
all real and personal
properties
quisition for state colleges. An¬

strictions

MANAGEMENT CORP.

The State Building Construction

vention of state constitutional re¬

SHARES

TELEVISION

of

other Act (SCA No. 11) authorizes

charge,
not

tions
are

NAME

ADDRESS

but the corporations are
agencies so that obliga¬
the private corporations

state
of

not

considered

against

debts

of

incurring

the

state

ifornia district.

a

An Act (ACA No.

The Act also spec¬

ifies that New Housing Authority
Bonds

eligible

are

to

secure

county and local public deposits.

Public

Works

to

either

issue

the

sale

of

California

State

of

extension

of

$100,000,000
in

bonds

CITY

the

For INCOME...

For GROWTH...

a

School

State

Program.

Aid

Both of these Acts re¬

ratification

quire

Building

by

the

voters

Municipal Securities Com¬

for

the

use

of

any

assembling of any agricultural or

products." The bill

would have authorized
ities to lease any

ported that:

others for

VENTURE

"

KNICKERBOCKER

(1) A constitutional amendment
was

FUND

.

A Mutual
income

Fund

A

investing for

consistent

with

Have You Considered
term

submitted

power

FUND
Mutual

Fund

other

investing

selected

Companies

remove

the

erty tax, but that amendment was
opposed by the Committee and

in

was

Atomic, Electronic and

long-

to

of the state to levy a prop¬

such

such

governing body
able
for

and
the

and to

to

municipal¬

such projects to

rentals

and

upon

conditions as the

terms and

cost of

defeated.

(2) A bill to have the state take

for

industry for

the manufacturing, processing, or

mittee of the California Group re¬

CAPITAL

connection

in

necessary

manufactured

of the state.
The

deemed

therewith, whether or not now in
existence, which shall be suitable

may

issue

purpose

deem advis¬

revenue

bonds

of defraying the

acquiring any such project
secure

the payment of such

GROWTH.

growth

y/'r«TO\v/w™w.v/.v.-.vw™.TOv/.v.v^

ELECTRONICS
as an

You

can

For Prospectus and other information

Knickerbocker Fund

Investment Medium?

invest in

a

diversified group

or

about

Capital Venture Fund, write:

KNICKERBOCKER SHARES, INC.

Mutual Investment Funds

20 Exchange PI., N. Y. 5

of electronics securities through
the shares

TELEVISION

-

•

o)f

ELECTRONICS

FUND, INC.

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booklet-prospectus about the

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mail coupon to

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135 S. La Salle St.

Chicago 3, III.

.

115 Broadway

I

Pi
££

Growth Stocks Series

New York 6, N.Y.

Information Folder and Prospectus on

NAME
ADDRESS....

FOUNDED

i

1928

A

Established 1930

CITY




prospectus from PHILADELPHIA 3, PA.

Request

NATIONAL SECURITIES & RESEARCH CORPORATION
120

*
-£S.v.

Broadway, New York 5, N. Y.

The Commercial and Financial Chronicle

This bill did

bends.

Iowa

.

.

contract with

not pass the

the authorities for erect building far living quarters
<
on behalf of married students for

services.

legislature.

which

Chapter 1322 authorizes Anson
MICHIGAN

County to call

acopted

in

,

May 4, 1955 (Section ZY of Article
10), implemented by Public Acts
74

and

of

151

will

1955

school districts to finance

permit
larger

a

been possible under the constitu-

restrictions

tax

in effect.

previously

(1) The amendment per-

mits school districts to issue bonds

payable from general ad valorem
taxes without limitation
amount

or

as

to rate

such

provided

bonds

mature in not less than 25 years
from date of issue (the maximum
life

of

is

school bonds

30

makes

school

bonds

period

1,

15

the

mill

limitation

tax

from

1962

not

in

The

years).

ize and operate an industrial development commission to advertise the County and secure new
industries.
Chapter
953
authorizes
the
Board of Commissioners of Durham County and the Governing
body of the city of Durham, act-,
in§ independently of each other,
to appropriate and use a part of
monies received from
Durham
County Board of Alcoholic Control and other monies from surplus funds not derived from taxation to advertise the County and
City and to promote new indus.

school building program than has
tional

Micnigan

amendment
constitutional

inapplicable
issued
during

TTnncp

r;h

ance

to

when

required.to

a

In

than

more

fcsuelT 'for'

13

bonds

CFived

district

school

the

the

state

loaned

amount

bonds

are

annual

levies

tax

to

mines

whether

not

or

state.

authorizes
borrow

to

of

purpose

districts for the

a

ter

and

1195

Sewer

such

to

power

ing

Authorities

authorities

acquire land, construct
.

,.

revenu3.bonds payable
of

the

.

j.

„

solely from

authorities.

It

provides that local units may

signature

one

placed

either through

tax

recap-ts. ine Dill expressly pro-

vides that the Authority would
have no power to pledge the
credit or taxing power of the
Commonwealth or any of its municipalities or political subdivis-

are

Eugene

par^jng

Commonwealth

or any

chnii

814

Bill

hp

rpnnired

the

creation

Hirschman With Schwarm
(Special to The Financial Chronicle);

an

outstanding

with Schwarm & Co. of Hamilton.

»ower to

which

tha

of its polit-

the

to

issue

cancel!

surrenderofthe under-

provided a ded .ufor in the act

prescribed

shall have been made by or on

id~/u> 5 ^itnds

behalf of the issuer with the state
Treasurer

This bill passed

and

Texas

of

upon

terms

GROUP

conditions

prescribed in the

through

Hou_e

Incorporated 1933
★

.

House Bill o63 amended .Article
2529 oi the Myiseti yiy i statu s
^ Texas to make engmie r s curing state! deposits with Banks,
bonds issued by a municipal cor

of

THE COMMON
STOCK FUND
A Diversified Investment
in Listed

Companies
★

bonds or

THE CAPITAL

of

a

/^Joiton

state

GROWTH FUND
★

Massachusetts Investors

THE FULLY

Growth Stock Fund

ADMINISTERED FUND

financing

aut'oritv bonds.
Brl No
519
(ef(ective

Sept 10, 1955)

of

SECURITIES, INC.

Act

The Senate adopted Senate Bill poration where the payment

below the State Capitol Building

its

recently con-

ducted his own investment busi-

in^ saccyrdance
accordance

without

bonds

securities

iyl.1f
posit

the

jn

thereof

terms

"fund. ®

[ation^?

it has

refund int0 bonds and R6SS
Dayt°" «"der *he name
and iegany called of Hirschman Securities rnmnnnv
QDn„rti,oc Company,
d lesallv caned

u h
h hn<? dulv
d l

u.

"as. °"ly
™^f^ns

the House 0± the Pennsylvania

and the constate parking garage

permitting

President;

Blanton. All were formerly with
Coombs & Company of Ogden,
Inc. and Coombs & Co. of Las

authority
a

Frontier

DAYTON, Ohio — Max A.
Hirschman has become associated

authorizes

has

which

indebtedness

Pennsvlvania

jcaj subdivisions.

(effective Oct. 13, 1955)

stiuction of

and

Haspray,

bond^ notes or other evidences Mr. Hirschman has

ions and that obligations or debts
of the Authority shall not

bonds or both.
,
Amencea &ubsiitute Senate Bill

^T°' V.

—

Alexander P. Hatfield, and Anna

The act provides for financ-

permits

with

LAS VEGAS, Nev.

Investment, Inc. is engaging in a
securities business from offices at

revenue

Act."-

the organiza-

'

also

lakes. This is primarily for

the prominent lake cities which
P^an to use this authority pro¬

Act

facilities, collect charges and issue

revenues

(effective

the St. Lawrence Seaway to cover

.

cf

193

school

payment of prinon school bonds.

This Ac. autnorizes
tion

No.

ers or

an

least

be

fnr

House

loan from

provides

to

deputy designated in writing
---

a

Q„f

of

1955) permits the crea- deemed to be obligations of

J.une

"the North Carolina Wa-

as

industrial

,,

Bill

Invodmpnt

Investment

Public Accounts of the state of Vegas. Inc.

0f

.

W

Senate

CAROLINA

NORTH

known

.

-

„

p

uJ"VTexas only his signature (or that
acquire or.

wculd be authorized to

^ •"
pedeSfS!en°favmol "ill
in
tha,bte '"!by Pledge or deed of trust of all
t receipts, ine Dill expressly pro
UJ xlct:..c
urines
uxnu ex

gram.

Chapter

..

Preceding paragraph.

cipal and interest
-

.

deter-

a

at

thereon
development Authority. This shall be manually subscribed and.
Authorit.Y wou;d be >a b°°y cor- as to public securities required to
pol^e and politic constituting a be registered by the Comptroller

induced traffic on the Great legislature on Aug. 2 but no action
.(3) The amendment Lakes. These authorities may also had been taken on it in the Senate
the state of Michigan be used
by cities on the Ohio at the time that this report was
5100,000,000
for the R'ver for wharves, docks,
etc.
,
making loans to school Toledo and Cleveland are among PrePa
•

district is eligible for
the

ms

tion of port authorities by cities in
the Ohio on navigable streams or riv-

in

that

that

vided

Tnsur- S 'instrurnentamv" g°wS

such

for

included

be

computation

are
ses-

on.

issuance of such securities; pro- 2419 South Fifth Street. Officers

the

_

,T

,

been repaid.
All
prior to Mav 4, 1955
areautomatically
qualified
for
state assistance (if a levy of more
than 11 miilc is
than 13 mills i, rennireA hnt all
required), but all
bonds issued subsequent to that
date must meet certain requirethe

and

,jfp
"
" ' "7
cepting ltfe insurance were not
life in,urance weie
Pf™"cd '° bay revenue bonds,
They now have hat privilege with
restrictions as to population and
p poa.e of 1SSUC se^
in the

by

has

if

1588

ieenpr

...

....

.

aes

bonds issued

ments

1

Bill

~

.

continue to levy not less than 13
mills on its state equalized valuauntil

t-.-,

House

and °*aer insurance companies tenants. The Authority would be
?ther than life insurance compan- authorized to issue bonds and to
,—
—
—
"
y

district must each year thereafter

tion

tt

board,

to act for bim) shall be required
to be manually subscribed to such
public securities,

,

Q

icre-

the state, the

loan from

a

has
iiua

uiauiLi

ttnuui

.

construct

'

,

of the excess over the 13 mill lew
a

had been taken on

construct industrial development
development
^ ate Sjix
'G"ectlYe properties and to lease or sell
Sep** 39' *955) Permits domestic those properties to responsible

qualified for state assistance,
the state of Michigan will loan to
the district on request the amount
After
ivri

BusiNo action
this bill in the
the

body or officer empowered by law to authorize the

PENNSYLVANIA

bave

are

.n<

by

VERMONT
Act No. 255 authorizes Vermont
municipalities to construct, purchase, improve, sell and finance
industrial buildings and to rent or
lease such buildings to industrial
concerns. Municipalities are authorized to issue certificates of indebtedness to provide funds for

House at the time that this report the construction, acquisition or
was prepared.
improvement of industrial buildings and to pledge the income and
TEXAS
revenues to be received from such
House Bill 725 authorizes the industrial buildings to the puncuse of facsimile signatures on mu- tual payment of such certificates
nicjpal bonds. This Act provides of indebtedness and interest there-

the

Pennsylvania

companies did not heretofore

Prye

corporations

on

stock

are

This

rurnoses

revenues

revenuelords'whlS

May 4, 1955, plus all
subsequently issued which

capital

Corporation Law.

pT? 7pwpr"Iir would establish a State Industrial required

s;cn added the nullification of

to

conferred

with
ness

scbocd district,

rev-

the bonds

wafpr'

DavablQ from

issued

bonds

interest for all

prior

in

by cities of 5,000 or
according to census

li^ht

eiectrjc

payment of principal

other

various

investment

population, where

school district is

levy

people

m0re

incur-

to permit

as

so

the

to

bonds

enue

calen-

any

its state equalized va'ua-

on

tion for the
and

amount

$100,000,000 under

conditions.

dar year

mills

aggregate

exceed

certain

addition

lifp

those utility systems authorized to
be encumbered under the provisions of Articles 1111-1118(a), Revised Civil Statutes, as amended.)

uiylahuiyia
•
A constitutional amendment in- that all public securities hereafter
ii w
aiiicuuuiciu in- inat an puoiic securities nereaiter
cl!eas.Gd the debt limit on school issued under the laws of Texas
i /i!
b°nds fro™ 5% to 10% may be issued with facsimile signS
n.at«rcs.. if the u?e of such hetaxabb? property in the entire simile signatures is authorized by

companies in Ohio to broaden

their investments

investments,

not

it was too late for introduction
at the 1955 session. The legislation will receive consideration by
the Local Government Law Committee of the Ohio State Bar Association in the ensuing year. The
next regular session of the Ohio
Legislature is in 1957.
^

~18~ iTtD ^nermTts

jn

an

bonds may be isrevenues
pledged

ficials and received approval, but ties

tatf0MUra
(,pffppfivp

i\Tn

Au<*

Michigan.to loan money to school
in

the

homa

amendment authorizes the state of
districts

such bonds is secured by a pledge
of the net revenues of a utility
Corpora- system or systems
(limited to

establishment of the Pennsylvania

.

(

OHIO

the

if such bonds mature in
than 25 years
(2) The

less

revenue

and

tries.

on

to July

1955

May 4,

sued

95

628 which would provide for the

Business Development
tion, but this bill would not authfrom such buildings and from all orize the use of municipal credit
other dormitories to the extent to finance construction of facilities
that a pledge did not already ex- for lease to private industry. This
ist thereon,
corporation would be authorized
There are some other bills but to acquire or construct industrial
they are of local character.
properties and to sell or lease such
The model bill to eliminate so- properties, but it would be a pricalled "Nuisance Suits" was pre- vate corporation possessed of the
sented to state administration of- powers, privileges and immuni-

special election to

a

levy a special tax not exceeding
2c on the $100 valuation to organ-

amendment
Michigan,
effective

A....constitutional

(2619)

Thursday, December 15,1955

.

A Balanced Fund

permits state col-

leges and universities in Ohio to

Massachusetts Investors Trust

★

THE INSTITUTIONAL
BOND FUND

Century Shares I rust

Fundamental Investors, Inc.

•

A

High-Grade Bond Fund
★

Canada General Fund

THE GENERAL

(1954) LIMITED

Diversified Investment Fund, Inc.

BOND FUND
A Good-Grade

Diversified Bond Fund

Bond Fund

Manhattan Bond Fund, Inc.

OF

Diversified Growth Stock Fund, Inc.

A prospectus

BOSTON

relating to the shares of any of these separate
be obtained from authorized dealers or

investment funds may

VANCE, SANDERS & COMPANY
111

available on
mutual funds through

Prospectuses
these

local

investment

firms,




or:

DEVONSHIRE STREET

NEW

New

Jersey

and

Classes write to

BOSTON

INCORPORATED

3,

Prospectus on these

17 Industry

v

HUGH W. LONG AND COMPANY
Elizabeth

For

6i

CHICAGO

YORK

Broadway

Iio

South LaSalle Street

LOS
2io

ANGELES

West Seventh Street

Distributors Group,

Incorporated

63 WALL STREET, NEW

YORK 5, N. Y.

96

The Commercial and Financial Chronicle

(2620)

Continued

from

the

52

page

.

opening

experience acquired during World

Conference

when

day

of India

War

intro¬

II, occupies the leading po¬
duced the highly classified sub¬ sition in the field, while Britain
ject of controlled thermonuclear has, so far, clinched the No. 2
position.
Russia,
which
shares
power which had not appeared on
with
us
the agenda of the Conference.
adequate
supplies
of
uranium, lacking in the United
Another subject which was dis¬
cussed
more
fully in
informal Kingdom, is making rapid strides,
but did not present any material
conferences than in the official
to indicate that it has caught up
agenda of the meeting concerned
the

use

heat

Bhabha

of reactors

rather

as

electric

than

in

this
In

The

power.

Both of these subjects are

by

covered

report.
to

its

power

conclusion,

seemed

the

to

of

source

a

the

United

Kingdom.

United

Kingdom,

spurred

earlier

need for nuclear
to reduce its fuel imports,

is
concentrating on large scale
production of existing models, in¬
tending to risk obsolescence for

consensus

United

the

that

be

sake

of

actual

production in

the next five years. Their scien¬
tists
are
assuming
that
their

Report oi IBA Nuclear
Industry Committee
President

States, with the help of the vast

Calder

Hall

design,

shifted
produce

now

dual

to

purpose,
will
mill power by I960. - "
-United
States
and

seven

The

with
their
relatively
comfortable supplies of conven¬
tional
fuel, are able to afford
longer-range
programs,
concen¬
trating on improvements in de¬
sign and technology which they
hope will result (at a somewhat
remote

more

date)

plant

than

in

a

ef¬

more

Calder

Hall.

The conference,
with its fine
example of the sharing of scien¬
tific

knowledge, marks a forward
step in world thinking, and should
of enormous value to

prove

kind.

The

through

particularly
better way of life in

a

to

years

will

man¬

also

Whether

come.

relieve

with

clear

that

attaining

it

international

predict that in the future
1955

will

be

regarded

nation

do

not

concentrate

their time

on

of security. From time to time, we have special

England

generated

by

future.

vary

from

but

underwritten

analysis by

this

by

one

of

firm

been

on-the-ground

after

only

potentials
its

of

nuclear

utilization

energy

for

the

low

cost generation of electric power.
The tremendous increase in world

officers.

our

the

lies in

power

IIWIXIVEIX, IIAHKNESS

Ilitt

&

requirements and the geo¬

metrical

scale

which

upon

of future

mates

INCORPORATED

esti¬

requirements

are

undertake

Tel.

power

nation

to

nation

nuclear

the
longer range the
of fossil fuels may be expected to trend upward while the
cost

of

nuclear

decline

At

crease.

will

curves

(a)

the

will

achievement

nuclear

of

of

will

be

incentive
ventures

stimulate
and

the

can

now

practi-

or

in the first genera-

A

total

of

power

80

some

are

several large

projects

power

designed for capability of 100,000

by

k

howe

I(

be

in

•

to

order

some

types

of

imagination

ingenuity,

before

time

to

common

uated.

assumption of calculated

technical and economic risks.

Teletype BS 570

LAfayette 3-3310

reactors

As

the
can

various

be

eval-

rough guide the fol-

a

lowing time schedule

or a

reactor

project is of interest:

Component development and testing

Engineering design

1

year

Construction

2

to 3

Testing and initial operation
Significant operation

6 months to 1 year
1 to 3 years

relation

to

ments 25 and 50 years

for

this

require¬
hence. The

power

electric

in

energy

country has been doubling
decade. Atomic power will

Total

not

supplant but will supplement

conventional
power

and

necessary

of

sources

will

and

thus

critically

As

have

we

for

world,

than 100 YEARS

more

the
de¬

velopment
of
nuclear
power
varies throughout the

depending

the

upon

cost

availability of present fuels.

The United

for

indicated,

plants
and

enjoying

States

is fortunate

low electric

very

AEC

In this

Cost

Est'd

country the cost of

ESTA BROOK
15 STATE

Boston

mental

CO.

range

Telephone LAfayette 3-2400

Hartford

in

power,

Providence

Members New York and Boston Stock

Springfield

as

the

some

one-half

Teletype BS-288

Poughkeepsie

projects

for

before

experi¬
it

we

nomically

or

cost

nations
one-third

have

of

present

have
as

Boiling Water

Argonne Laboratories

1956

17

Sodium

Graphite
Homogeneous

North American Aviation
Oak Ridge Laboratories

1956
1956

10
3

1

Pressurized

Water

Westinghouse Electric

1957

85

60

Argonne Laboratories

1958

40

15

Thorium Breeder

Oak Ridge Laboratories

1959

44

16

Industry Reactor Proposals
Estimated

Type

-

•_.

Pressurized

Water

Yankee

(1000 Watts)

1957

100

1958

Atomic

Power

Completion

Responsibility

„

180

Electric

Fast Breeder

Detroit

Sodium Graphite

Consumers Public Power

1959

75

Pressurized

Consolidated Edison

1959

236

Commonwealth

1960

100

Water

Boiling Water

Edison

Edison

only

far

to

to develop eco¬
feasible
reactors.

»By 1960, the nuclear power proin the United States will

gram

represent
million

investment

an

and

a

power

of

$250

capacity of

is

Industry, as well as the
anxiously awaiting the
of

pietion
nnwpr

the

rpaptor

first
„ndpr

York

and

30 State

Boston

Exchange

power reactor under construction
ut Shippmgport, Pa. by Duquesne
Light Company. This will provide

1975-80.

Exchanges
1833

DISTRIBUTORS

Stock

of

Exchanges

GENERAL MARKET

(Associate)

Street, Boston 5, Mass.

MUNICIPAL BONDS

Specialists in Bonds of Municipalities
UNDERWRITERS
CORPORATE AND

AND

DISTRIBUTORS

within Massachusetts

OF

MUNICIPAL SECURITIES

ROCKLAND-ATLAS
AUGUSTA, ME.

BANGOR, ME.

LEWISTON, ME.

PORTLAND, ME.

KEENE, N. H.




GREENFIELD, MASS.

FITCHBURG, MASS.

NATIONAL

BANK

LAWRENCE, MASS.

MANCHESTER, N. H.

scale

construction

capacity

by

Established 1887

New

corn-

k.w.

UNDERWRITERS and

American Stock

large

AEC,

should be increased to 100 million

about 1 million k.w. This

Townsend, Dabney <Sl Tyson
Members

5

Fast Breeder

ESTABLISHED

■

(1000

Watts)

of$)

would

competitive with conventional
generation. Because of the wide

go

New York

indicated

be

STREET, BOSTON

Boston

cost

Power

(millions

Completion

power

nuclear generated energy must be
reduced very substantially from
the

Program

Responsibility

Type

in

generation costs and in possessing
relatively large reserves of fossil
fuels.

years

a

commercial

the

5 to 7

timely

restoration of power fuel supplies.

urgency

years

Nuclear Power in the United States

electric

provide

1 to 3 years

(allowing for over-lapping)

every

in NEW ENGLAND

re-

including
research
and
special purpose small reactors, are
now under construction. Included

practical utilization of

maximum

financial
business

aided

de-

of fin¬

Neither

actors,

nu-

economically
power
for

nuclear

use

are

reactors.

assist-

field.

Developing

civilian

production

materials.

tion of commercial nuclear

the

to other countries in the

ance

reactor
and

Commission

We

competitive

American

to

research

wil1 expand theoretical
cal nuclear knowledge.

accelerate

improve

and

power

It

or

the present program in
which

itself.

subsidize private
publicly-owned
utilities
in
building
or
operating
nuclear
plants. It may, however, provide
assistance in research work that

basic

It is in the national interest

manner

or

sionable

philosophy in
planning of the civilian power reactor program was expressed in
the following:

a

for

velopment

cross.

AEC's

The

incidental

operations

efficiency inpoint these cost

some

business

power

by-product,

should

reactors

is specifically
engaging in the

from

js forbidden to produce or sell nuclear power, except as a surplus

their

and

Commission

prohibited

plotted, point up the limited sup¬
plies of fossil fuels—coal and oil

Street, Boston 9, Mass.

demand

-

develop-

demonstration

—in

70 State

e

at • government
exstimulate
outside

or

The

over

.

of relatively high-yielding tax-exempts which have

reactors
economics

The

pnee

competitive

The greatest current interest in

offerings

nuclear

the

will

over

(b)

Electric Power Reactors

this type

1

(d) Positive steps of assistance
to other countries should be in-»
eluded as part of the program.
• -

clear power

energy.

r o

advance

As a generality it may be expected that an increasing percentage of world power needs will be

marking the beginning of the
second
phase in the history of

BONDS

inquiries from those New

invite

cordially

dealers who

MUNICIPAL

mental

develop

to

to

groups

on

Commission'sJ
to

projects primarily with non-Commission financing.

nuclear

IN

,

and

pense

re-,

plan

in

The

technology

the

coal

must

(c)

.

the

effectiveness

as

SPECIALISTS

with

Thursday, December 15; 1953

should A.be

than

sooner

such a position
future.

near

very

the

to

year

nu-

depletion of the British

to expand

the

and

Furthermore,

safe

As

coal

economic

cost

at

much

power

do.

we

high

arrive

may

countries

benefit

should

the

backward

on

serves

the

U.S.S.R.,

ficient

Britain

tensions concerning the weapons'
use
of the atom, only the years
ahead can tell. However, it seems

we

...

i

Main Office: 30

MEMBER

of BOSTON

Congress Street, Boston 6, Mass.

FEDERAL DEPOSIT

INSURANCE CORPORATION

Volume 182

the

first

Number 5490

opportunity

for

.

..

The Commercial and Financial Chronicle

major

cost evaluation studies.

contracts covering business
interruption,in the event of acci¬

nnce

(2621)

through the

of

efficient

Problems in Reactor Technology
One

the

of

foremost

problems

facing the reactor engineer is that
of waste disposal. Since it is an
integral result of every fission re¬
actor, it is of basic consideration
in

projecting

nuclear

the

economics of
The
engineer

power.

faces the dilemma of what to
with

do

In,

form

some

another,

or

more

alone.

yond the limits established by the
insurance companies. The magni¬
tude of the problem

be

can

seen

in the effect of the contamination

the

water

supply of a major
city by radioactive materials due

increasing supply of an
material, which beyond to a reactor accident. Until the
an
almost
insignificantly small insurance companies have more
theoretical
amount, cannot be disposed of by than
projections on
dumping in the sea, burying in which to base rates, it appears
the ground, etc.
that government guarantees will
be a necessity.
Although not much mass is in¬
an

unwanted

volved (one gram of fission prod¬
ucts per megawatt per day) about
20 different elements
in the

radioactive

preciate

the

problem,

To

magnitude

of

ap¬

the

the following
given type of
reactor operating for a measured
period of time about 10« (100,000,consider

illustrations:

In

a

000) units of waste

are

and

one

no

than

more

produced
unit

can

be given up to the environment.
Thus, we have a fantastic prob¬
lem of a qualitative separation of
20 different elements and a quan¬

titative

disposal

amounts from

of

tremendous

radioactive view¬

a

One of the most promising com¬
fields is that of process

radiation.

Surrently, the main method of
disposal is really not disposal at
all, but rather a temporary solu¬
tion of storage.
This is a costly

operation

in

container

of

terpis

costs, storage corrosion, etc., and

certainly does not appear to be the
solution,

final

\vnere

inated fuel elements

intermediate

are

contam¬

involved,

of

step

plants

in operation.

now

looking ahead, three possi¬
bilities are
evident.
First, the
government will continue to mo¬
nopolize this field as at present.
Second, each power plant will
build its own separation, reproc¬
essing and disposal units.
Third,
industry will build regional plants

.C0P-?

latter

-

elements

and from

a

longer

the
economic
radioactiye by-products

term

viewpoint

worth

of

to

industry.

Ultimately, this area offers a
vast potential for participation by
the chemical industry in the nu¬
clear

program.

Insurance—A Primary Considera¬
tion in

Commercial Atomic
Energy

A

*

great deal of discussion has
place concerning the over¬

taken
all
but

problems of atomic insurance,
as yet no set program has been

advanced by the insurance indus¬

Since a workable pro¬
is essential before industry
commits itself to large scale com¬
mercial participation, it appears
opportune to briefly summarize
try itself.
gram

the

major problems based upon
preliminary interim report of
a special group of insurance exe¬
cutives organized with the cooper¬
the

(A) Insurance for physical dam¬
age to

reactors and equipment is

feasible
ited

on a

similar basis

as

lim¬

insurance for presently

haz¬
machinery. In
translating
the
feasibility
into
practical coverage, the industry is
hampered by the lack of historical
standards and the wide variety of
reactor types proposed for power
industrial

ardous

(B) The threat of

trophe

due

to

major catas¬
reactor failure is
a

emitted by various
isotopes, changes are

resistance

to

high tem¬

Radiation

peratures.

has

been

the

and amount of coverages. This in¬
cludes the magnitude of property

losses, decontamination and work¬
men's

compensation

outside of the reactor

both

at

and

area.

(C) A problem associated with
the first two has to do with insur-




the

discovery of the
nature of radium. Following the
development of the hot cathode
tube in

1913, the use of X-rays in
diagnosis and treatment became

an essential part of medical prac¬
tice,-.! Further progress was made
with {high voltage X-ray therapy
machines in the treatment of can¬

cer,

but with the development of

nuclear produced radioactive par¬

ticles,

entirely

an

new

vista

in

of atomic de¬
velopments in the medical therapy

as

as

tribution

A

profound
change may take place in the ap¬
proach to the general study of
disease.

The

morphological

a

con¬

operation

tracers

as

complex

and

that it is

mechanisms.
can

into

delicate

be

intro¬

the

most

molecules

possible to study

now

achieve

of

the

human

the dynamic functions in the liv¬

Heat

of

nuclear

reactors

sim¬

of heat.

One UN
paper
estimated that if atomic
energy is limited to electric pow¬
er

source

a

production, it is not likely to
more than 20% of world

supply

energy requirements by the year
2000.
Should atomic energy be
used

for

the

production of low
cost heat as well, it could provide
part of world energy requirements
by the same year. It is interesting
to

note

that

forms

of

energy,

blood

inate

been found effective in the treat¬

pow^r in all in¬
dustrial processing in the United

ment of abdominal

States. Some experts estimate

70%

some

on

the

of

size

present gas synthesis plants.

of

Fur¬

thermore, it offers the possibility
of a gas with the BTU efficiency
approaching that of coal instead
of the 45%
efficiency now ob¬
tained.

Another field having fascinating

possibilities
of

food

is

in

the

products.

diseases

practice.

,

are

now

Radioactive

,

s ;

,

standard

gold

cancer.

has

One of

can

against

has

been

in meats,

supplies.

; v,.

The industrial uses'of heat are,
of course,

so

unnecessary

basic

that it is

numerous

to catalog them.

problems

heat

the

from

reactor to the in¬

dustrial process.

The AEC is

a

suitable process and similar ef¬

forts

reported to be under way

are

mainly heat, account for approxi¬
mately three times the average
cost

of

electric

Bhabha

Dr.

of

the

of India,

Geneva

President

Conference,

thermonuclear power, by express¬

ing the hope that
sion

controlled fu¬
achieved within 25

be

may

years." It was subsequently learned

that

controlled

exist

in

the

fusion

AEC

The

has

investigations
been
the

in

conducted
code

wood."

programs

United

United
Kingdom,
France, and India.

States, the
the
U.S.S.R.,

announced

this

field

since

1951

Princeton University, Univer¬
sity of California at its Livermore
are

(California)

laboratories

Continued

on

and

at

page

98

j

■? ■ •• -ivt- r -ttrf-i

fa

m

i
INVESTMENT SECURITIES

mm

<

large and

business

has

r'

shipments to more than 1,100 in¬
dustrial companies, 1,000 hospitals
and over 450 government labora¬
tories, universities and founda¬
tions. Perhaps no single phase of
the
nuclear industry
affects so
many
activities.
In agriculture
isotopes are being used to trace
underground water supplies, to
study the exact action of fertiliz¬
ers in promoting plant growth and
in studying plant growth itself.

b W-4

United States

Industrial

companies are put¬
to a great many
uses.
More than 300 companies
are
using
them
as
thickness
gauges in the production of such
products as sheet metal, rubber
and plastics.
One control manu¬
facturer is working on a combi¬
ting

isotopes

nation

electronic

of

Government
Issues

computers

radiation thickness

a

gauge

which

it believes will make pos¬

sible

completely automatic

a

paper

operation. The oil and
natural
gas
industry are using
tracer gases which
contain iso¬
topes to measure the flow of gas
and various oil products and to
detect the points of separation in
multiple product pipelines.
making

The

dollar

in

small

value

such

industry.

of

processes

measure

of

the

isotopes
is

very

a

benefits

to

For example, $10 worth
can

be diluted with 50,-

tected; but it is the indirect

sav¬

ings

The First National Bank

that

realized

provide
the

a

by

truer

economic

topes which

industry

measurement

importance
are

of

estimated

to

$100

million

of Chicago

of

iso¬
be

saving the United States industry
some

under

name

,

2-z, sgg

annually

BUILDING

WITH

CHICAGO

that

have

"Project Sher¬
The principal participants

that

mm

in¬

spired extraordinary interest and
conjecture in the potentialities of

broadly dif¬
already been
build up through the use of vari¬
ous radioactive isotopes. Last year
the Oak Ridge national laboratory
alone made almost 70,000 isotope
very

cur¬

rently
seeking industrial
com¬
panies to cooperate in developing

Isotopes—Controls and Research
A

The

be solved in
heat reactors concern the transfer
of 2000-3000
degree Fahrenheit
to

*

■■

low

conventional fuel.

vegetables, and other foods are
destroyed by the rays emitted by
certain radioactive
isotopes and
that it may be possible to store
irradiated food indefinitely with¬
out
refrigeration.
Radioactivity
may also prove useful in sterilizjng |00^g ag well as drugs and

fused

as

1,000,000 BTU, as
approximately
25c
for

per

irradiation

It

that the bacteria

; *-■•*

employed

fall

Thermonuclear Power

the use
of nuclear energy for the produc¬
tion of synthetic gas from coal. If
successful, the process could elim¬
research

10c

Reactors

subject that curiously enough
was not on the agenda of the Ge¬
neva Conference, but nevertheless
is of great commercial interest, is
use

vital

may

of heat

sources

A

as

atoms

we

nuclear fuel costs when

in Canada.

Process

ply

of

to

mechanism.

the

which has to do
disorders,
may
secondary to the con¬
disease as a functional

structural

well become

alteration

science

better understanding of the ac¬

tual

with

of

nuclear

tools with which

cept of disease,

cept

of

more

medicine will be in providing new

opened up in medical science and

biochemistry.

of the

potent
radio isotopes in teletherapy ma¬
chines which are proving superior
high energy X-ray machines. The
prospect opened by experiments
in the medical field suggests that
within the next 50 years epidemics
from infectious agents will cease
to be a major threat to life and
health. Probably the greatest con¬
use

has

ing state without injury to the in¬
dividual.
The
use
of
isotope
Iodine-131, and Phosphorus-32, in
treating
thyroid
disorders
and

The Bureau of Mines, spon¬
sored and assisted by the AEC, is

000 barrels of oil and still be de¬

culate

dates,

when

rials.

of tritium

in which to cal¬
probabilities of loss

1898

so

the main unsolved problem, since
way

to

It

improve the electrical in¬
sulating qualities of certain mate¬

used to

there is

no

long experience

a

of radiation.

Curies made their

duced

their

used

plants.

back

fact,

in

with

ation of the AEC.

in

Radioactive

with, tfre government. ;jnedical
two

possibilities -are
geared to the price tnat the gov¬
ernment will pay for reprocessed

use

greatly improved in strength and

found

In

fuel

rays

effected in the molecular or chem^1 structure. For example certain plastics so treated have been

reproc¬

essing to recover the uranium oc¬
curs at the four AEC separations

By subjecting materials

radioactive

•

The

the

to

Medicine has
with the

in

mercial

engaged

point.

the

Process Radiation

involved

are

waste.

Medical Uses

the

government will probably have to
step into the picture to guarantee
risks resulting in liabilities be¬

of

the most practical
field is the

use

control devices

dents.

97

SINCE

1863

98

The Commercial and Financial Chronicle

(2622)

V-

Continued

from

Report oi IBA Nuclear
Industry Committee
Los

Alamos, at Oakridge and New
University. The budget for

large

small

amount,

was

vestment

fusion.

a

laid

is quite a signifi¬
money." The budget
1000% larger in 1954

about

fiscal

not

1953

and

in

the

The

to

current

for

reason

Once the

it

out

only

on

in¬

considering

take years to
practical basis.

a

atomic

of

type

no

basic concept is

it will

down,

work

of

sum

in

is

It

one.

cant

than

it

and

scientific theory

some

be formulated there is

can

the project was described at "not
a

Until

years.

York

power

be available in the foreseeable

double

future is the fissionable materials.

the total for the past two years.
In theory the idea of a fusion

Recent Developments in Nuclear

will

year

reactor

is

would

be

about

there

problem

waste

no

of

Three

important

disposal

have

pertaining to nuclear fuels. In the
order
of
occurrence,
they are:
first, the new wave of enthusiasm

and
radioactivity, both
"stumbling-blocks" in the

to

economic

However,

this

nuclear

is

not

a

power.

one

way

street since the problems of con¬
trol
and
heating are
immense

heating

material

a

to

perature in the order of
million

degrees

there for

and

mit the fusion to

of

an

perhaps
the

there

not

even

contain and

fusion.

In

within

time

topics

control

naming

which the

curement

such

their

its

and

is

known

after¬

as

fertile

a

be converted into

can

program

similar

to

uranium, it is publicly known that
the Commission has been

of

the

material.

While

search has been done

basic the¬

find

can

fissionable material. Although the
AEC has never announced a pro¬

period of

a

reactor

types under development will
thorium.

It

that the

has

U.

been

use

speculated

lack of enthusiasm

S.

is due to

our position as the pro¬
ducer of the free world's A-bomb

stockpile.
Because of this basic
responsibility,
we
supposedly
have
emphasized uranium from
which

plutonium,

comes

the bomb at
ium.

It

the

expense

billion.

in

investment

facilities

nium

The

is

that

at

is to

done

on

buyer

a

some

months

of

total of 398 issues with

1955,

an

a

aggre¬

watch

reactor

or

The

publicity

fusion

resulted

in

uranium

ments

on

mand

which

in

bearish

and

state¬

resulted

in

sharp declines in uranium stocks.
While in many, if not most of the

and

in

27%

of

in

num¬

from

value

the

sales

of

new

eight

data

actual
issues are
on

uranium

However, a record
of mining company issues under
Regulation
"A"
filings
in
the

April 1, 1953 to Oct. 31,
showed that of the total
stocks offered by the issuer, only
period
1954,

19%

suggests

fairly stated

threat

of

the

to

sold within six months

were

metal itself should be

the

proceding

extent

amount

85%

of

or

ber

of

of fission reactors by fusion
reactors. With regard to tne latter

not

this
substantial

a

build
no

building
fission

planning to
need have

or

fear that their investment will
outmoded

be

before

they have
capital
invest¬

their

amortized
ment.

|
The supply demand situation of

uranium

is

difficult

a

one

to

an¬

the

ratio

involved

ventures

did

beyond the stockselling pnase. It is probable that
a similar experience has attended
uranium stock offerings.

reactors,

suffered

Losses

the

by

public

the extreme "rice de¬

because of

preciation of promotional uranium
stocks have been sufficiently large
and widespread to command the
attention of legislative bodies. As

well

conceived,

ium

nothing

than hope is being expressed

more

and

be

may

a

guess

be

of 10 years could

hazardous

as

publicly,

the

U.

S.,

at

has

not

been

of

the

theory.

a

least

strong
Other

as

proponent

50

of

one

concept,

countries, stressing its importance

Currently, the U. S.

the

March

until

31,

uranium

1962.

In

effect, this

\

/

specified

a

tion,

Underwriters—Brokers

Listed

&

acts

Unlisted Securities

means that the Com¬
will buy any ore having

mission

The
as

an

uranium

Canadian

Government

similar

disillusionment

impinges

tions

of

the

Both

the

Straus, Blosser
MEMBERS

NEW

YORK

STOCK

McDowell

&

thorities

nounced that after M^rbh 31. 19^.

economic

no

be

more

•

M1DWEST STOCK

contracts

would

negotiated.

As far
EXCHANGE

special

as

the

and

or

under¬

spreads into
its

and

upon

the

after¬
opera¬

investment

entire

investment

fraternity

Federal

regulatory au¬
fully cognizant of the
political harm en¬
gendered by the issuance and sale
of

investment

who

community.

policy.
Recently, however, the latter an¬
a

fields

math

those

of

losses

suffered

investment

agent of the U. S. Gov¬
with

ernment

concentra¬

were

have

are

stocks

more

39

•

AMERICAN

SOUTH LA

CHICAGO

NEW

YORK

SALLE

EXCHANGE

EXCHANGE

and

which

represent

little

than "hunting licenses" and,

3, ILLINOIS

not

ANdover 3-5700

CITY

CG

tional deal will

GRAND RAPIDS

TELETYPE

MT.

The

soon

outright

are

stock-iob-

affairs.
Nevertheless it is
recognized that a difficult

show its true

Several

months1 ago

Uranium

Speculation

The

PRIVATE WIRE SYSTEM COAST TO COAST
Retail

Stock

price gyrations and trad¬
ing activity in uranium stocks no

nine

mass

examination of the accounts

of

all

District

longer make headlines in the fi¬

/

states

Mexico,

press.

Nevertheless,

pro¬

examiners

NASD

nancial

Trading

amination

as

has

No.

3,

to

member

which

of Arizona,

Utah,

make

firms

covers

It will be¬

yet.

as

the

as

soon

formulated,
which will probably take about
six months.
The regulation will
be applicable to existing member
firms

well

as

as

firms.

new

Regulation "A" and "D"—Consoli¬
dation

The

Revision

and

Securities

and

Exchange
thorough
study of the problem and has pro¬
posed a Revision and Consolida¬
Commission has made

a

in

the

Colorado, New
and
Wyoming.

a

tion of Regulation

"A" and Regu¬
the principal
features
of
revised
regulation
would
be
the following
special
requirements which would apply.
lation

"D."

One

of

only to promotional companies:
The securities to be offered
have to be qualified for

(A)
in

the

State

or

,

Province in
principal'
and offered'

which the issuer has its
business

operations,

for sale in such State

Province,

or

concurrently with the offering in
other

jurisdictions.
No securities could be of¬
fered except for the account of the;
(B)

issuer; secondary offerings, "bail-;
outs," and offerings of underwrit-.
ers' shares or options, would not>
be

permitted

the

under

exemp¬

tion.

Provision would have to be J
escrow or otherwise, to-

(C)

made, by
assure

the

of

money

the

least 85%
sold

the

paid

paid

after

subscribers)

in

unless

&

Co.

and

Exchange
other Principal Exchanges

231 South La Salle

within

for

the

in

offering.

(D) In

computing the amount-

securities

which

under

the

would

have

could

to

be

included

be

the amount of all securities
or

issued;
proposed, to be issued, for as¬

sets

or

services

or

to

directors,

officers, promoters, underwriters,
dealers or security salesmen, and
held

by them, except to the

tent

that

such

securities

are

State and Municipal Bonds
Investment Division
f

■

and Authority Bonds

canadian and foreign securities

American National Dank
1

Trust
new york

boston

los angeles
new haven

hagerstown

london




philadelphia

san francisco

LA SALLE

AT

•

FRANKLIN

2-9200

minneapolis

amsterdam

MEMBER

FEDERAL

■

Company of Chicago

WASHINGTON
DEPOSIT

t

of¬

regulation,,

new

INDUSTRIAL AND PUBLIC UTILITY SECURITIES

State, Municipal

six

commencement;

Street, Chicago 4

Underwriters, Brokers and Dealers

at.

total offering is;

of the

and

lhonths

to

return

U.S. Government
Members New York Stock

ex¬

been

\

White,Weld

The

NASD

cover

by the SEC, but it is

effective

there

the NASD

sent

650

and

fered
Corrective Measures

colors.

CLEMENS

examination.

will

effective

come

of

fear.

to pass an

NASD

risk ventures.

to

MILWAUKEE

member

one

new rule has
been approved
by the Eoard of Governors of the

of

have little
speculative promo¬

of

proprietors

rules and the financial regulations
firms
dealing in securities.

problem exists of providing great¬
er
protection for the investing
public without stifling legitimate

managements

obtaining

for

also

some,

bing

in

new

year's
experience in the securities busi¬

in

cal

sole

a

firms who have not had

phasis has returned to an analyti¬
approach. That is, as in other
mining operations, those compan¬
ies with good reserves and far-

(ASSOCIATE)

passage

and

writing interest in the uranium
industry are concerned, the em¬

STREET

TELEPHONE

DETROIT

KANSAS

STOCK

of

regulation
by the NASD which will require
all
salesmen,
officers,
partners

sighted

DETROIT STOCK EXCHANGE

influence

some

the

sale

guarantees

figures.

had

would

Government

tion

'

The uranium stock situation has

ity

ignorance, greed and cupid¬
the principal ingredients
in the indiscriminate speculation
in
uranium
issues.
Nonetheless,

alyze because of the classified na¬
ture of production and consump¬

con¬

uranium

securities and other types of vio¬

usual

prices

ories

sale of

lations.

num¬

progress

those

both with

cases,

the

of

more

offered;

that

obsoles¬

point, the Commission states that

-

The

the

should

the

Unfortunately,

uranium speculation had
gone too far, the outlook for the
cases,

as

of

examination

supply and de¬

turn

with

ness

de¬

new

thorium

number

a

nection

not available.

on

in

respect to violations made in

of $89,992,000 were
Regulation "A"; tnis
compared with 159 issues with a
value of $34,790,000 in the same
1954 period, r or the same periods,

of

Dis-

ciplinary actions have been taken*

ber

velopments abroad.

uncovered.

value

months.

thorium

violations

under

average

may

examined

were

of

were

gate

be

the

firms

number

Hied

touched off by an official procure¬
ment program, an evaluation of

re¬

the thor¬

nine

first

151

a

filings dropped by 33%

$8

longer term outlook

be

can

the

Some
and

NASD rules

for

ura¬

estimated

Thursday, December 15,1955

.

All

key to
of thor¬

a

might also be noted that

nation's

our

.

14 issues totaling $32,838,000 were
fully registered in 1955 as com¬
pared with eight issues aggregat¬
ing $17,321,000 in 1954.
However, an abrupt reversal of
this trend may have occurred in
September when there were no
registrations and Regulation "A"

cence

fuel since it

however,

theoretical

a

(H-bomb)

math.

millionths

time,

fusion

Conference

neva

tremendous heat, nor is there any
other present, scientific approach
to

three |

all

concept from which science could
work to

the

Thorium

present

is

of

origin in the activities of the*Ge¬

second.

a

At

of power;

source

publicity

and

per¬

by the
extremely short

several

a

third, the very bear¬
on uranium supply
demand. Interestingly enough

ish

Such tem¬

occur.

as

months

recent

process, and

it

generated

are

atom bomb for

time,

tentials

hundred

period of time to

a

peratures

a

holding

in

second, the studied lack of pub¬
licity on
the non-weapons
po¬

tem¬

a

occurred

for thorium

Consider the basic problem

ones.

of

the

significant trends, which
developments

major
road

of

one

for thorium is far from clear.
Fuels

intriguing since

be

since

ment

.

•

at Geneva, caused a wave of pub¬ motional activity in such issues
licity. The Commission is by no Lias apparently increased througnmeans
neglecting
the-develop¬ out most of the present year.
In

97

page

•

INSURANCE

CORPORATION

ex-,
es-

Volume 182

Number 5480

.

.

The Commercial and Financial Chronicle

.

(2623)
crowed

held
of

otherwise .effectively

or

off

one

the

market

after the

year

ment

of

for

will,
put

commence¬

the

to all intents
out

us-

business.

offering under the
regulation.
(E) No sales literature, other

new

than

stocks- "We realize that it

penny

period

a

the

That is

purposes,

stock

penny

why the decision

made."

was

We

the

of

and

noted

a

request made by a

prescribed offering cir¬
and limited advertisements

leading exchange member, and we
concur
with it, that one of the

specifically
permitted
by
the
rules, could be used in connection

associations prepare a statement
of policy with respect to "penny"

with the

stocks

cular

offering of securities of

promotional
It

is

the

companies.

believed

that

Commission's

to

providing

within

and

specific

that

the

present

have

been

of the need for

regulation

disposal,
fuel
shielding, etc.,

reminded

(2)

effective

more

cumbersome to deal

with

situations
to

efficiencies,
ultimately,

and,

that

Kingdom

Increasing

activity
propulsion.
One

states that

*will

70%

within

opment

rapidly

in

in

be

this

in

in

six

is

nuclear

new

believed

that

policy

of

that

the

on

of

speculation

of

type

thrives

to

hazards

that

implications

are

Many investment firms, on their
initiative,
have
taken
a
position in discouraging
the purchase of low-priced ura¬

of

rest

industry.

The

ATOMIC

ENERGY

of leading

vey

New

a

York

sur¬

be

Los

Lee

ably

directed

and

his

Cooper-Hartert Opens

can

GREAT

Cooper

men

universities

can

argument

as

we

must

To

com¬

and

selling

the

looking

and

the

to

country, and IBA has a very ca¬
pable staff. In working together I

Macurda

sure

that

we

shall

conclude

constructive things for the
industry of which we are all a

many

Corporation

New York

determined

a

effort

ing
made
to
minimize to
the
greatest posible extent the accept¬
of

ance

orders

for

such

issues.

Specific
-

regulations most
generally adopted include (1) Refusal
to participate in new issues,
(2)
Prohibition
ders

solicitation

of

or¬

for

low-priced oil, uranium,
other mining stocks, (3)
Re-

or
-

of

fusal

of

issue,

of

purpose

buying

Requirement of

(4)
from

ter

accounts opened

new

sole

the

customer

responsibility

for

for

such

a

and

solicited, and (5) Approval of all
orders by partner or office man¬

hibition against

accepting any or¬
uranium stocks;
others will accept orders only if
the
issue
is
fully listed on a
penny

States

Canadian

or

through the
sell

manner

and

pared
tion.

laid

out

distribu¬

for

work

should

be

broadcast

effectively through being
presented to the boys back home
—and when I say "boys" I mean
the
younger
fellows
producing

stimulate
young

the

in

men

committees.
of

all

active

the

It

is

work

of

Greenwald.
!

now

with

A.

G.

Edwards

With

Saunders, Stiver

(Special to The Financial Chronicle)

CLEVELAND, Ohio —Gus A.
Kasapis is now with Saunders,
Stiver
&
Co., Terminal Tower
Building,
west

members of the
Exxchange.

Mid¬

Stock

(Special to The Financial Chronicle)

challenged by knowing
work actually will be
used. It will be equally stimulat¬
ing to me to discuss key points inthese
their

if

men

the

I

sell

but

can

them

on

practice of being informed.
is my concept of internal

Here

are

set up

within their

tions

selected

study

and

within

their

immediate

use.

back

into the country—

the grass roots

there is much that

our

relations
group

the

members

in the 30-40

bracket, to
organiza¬

small

to

groups

independently
some of the major subjects being
covered by our senior committees.
studies

be

sent

group

Public

Utility, Industrial and Municipal

the

to

of

'

own

review

these

Underwriters and Distributors

of

Securities

chairmen of the senior committees

and working

for their review and if the work is

organizations

—

Gerald

„

which

who

—

omjparw

with groups, which
call upon, and to encourage
broader
study
by
young

reports

I may

do

who

men

clientele and

Company of New York.

Wis.

Schweiger is with the Continental
Securities Corporation, -207 East
Michigan Street.

their

are

among

MILWAUKEE,

be

data

that

use

of

can

be done to

real value, call in the young'
chairman to join the senior group

(1)

to

and

ideas

the

present

of

Since

his

IQI2

for inclusion in the report

group

in

home

turn

(2)

the

on

to

back

report

finished

in

effort

which he participated.

A* G* Becker

&

Encouraging Young Men Into

Go♦

the

\

Industry

From checks which I have made

INCORPORATED

personally I know that the young
men
of our business stand ready

Established 1893

to hear what IBA

Furthermore,

Underwriters and Distributors

make

do for them.

can

they

ready

are

contributions

the

to

to

proce¬

dure which is beneficial to

us

and

Brokers of Listed and Unlisted Securities

Municipals

back

New York

Stock Exchange

Midwest Stock Exchange

j

American
San

all

of

'

Francisco Stock Exchance

ficial

to

So.

LaSalle

St.

54

Pine Street

the

larly
accent

is

younger

of

IBA

New York

of
of

4

Telephone: FRanklin 3-6100

Telephn-ne: WHitehall 3-2800

Teletype: CG 108!)

Teletype: NY 1-3433




One

be
And

Other

Cities

MEMBERS

can

member

the
our

are

called

think

to

most

all,
pass

construc¬
so

will

the

be

pdustry is to have
sooner

sponsibility

and

Exchange (Associate)

require¬

coming along. Those
with us may

upon

Exchange

American Stock

tomorrow.

vital

Exchange

Midwest Stock

The
it is the

ones.

presently
assume

New York S/ock

bene¬

particu¬

—

and

who

today

younger men
who

youth

on

active

ments

Chicago 3

we

highly

the members

youth
120

the

these

tive information which is

*

Stock Exchange

A.CA//iyn & Co.

young

lastly, through
men's organizations,

Commercial Paper
Members

&

and to let the producers of factual

Let

to

Seymour Greenwald

Rosalind

IBA

Bpxers,

Going

St.

Harrison

horizon

Sand

to

are

1122

securities business.

benefit

their

prepared by experts is ideal

have

a

of

to, the

broaden

to

&

interest

for IBA.
Through our
leaders, let us call upon the
Junior Bond Clubs, Street Clubs,

a

at

in

Sons, 336 Maine Street.

Madeira

JACKSONVILLE, Ni C.—John
V. Huff is with Brown, Madeira

business,
who need the back¬
ground
material
on
industries,
government, etc., to fortify them
in their selling efforts.
Informa¬

through

respect

It

It is essential that the meat

ing

with

we

information

is not enough that reports be pre¬

expressed by one firm in explain¬

policy

about

in which

technical

the

re¬

Our

created by committee workers.

for sales

penny
stock transactions.
general attitude was clearly

its

effort.

organizations technical research
men
to provide up-to-date data

A few firms do not al¬
representatives
branch offices on commissions

The

provide

to

overall

internal relationships come

not

stock

exchange.

from

ability
the

building

low sales credit to
or

With Brown,

for

Some firms have a blanket pro¬

United

31

page

tion

ager.

in

from

more

stating that the business was not

ders

for

of this

let¬

accepting

purchase

sults

Y.—

part.

Tasks Confronting the IBA
their

N.

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

and

BELLMORE,

Joins Continental Sees.

Continued

be¬

was

to

QUINCY, 111.—Charles R. Bach

.

•that

Co.

Road

Joins A. G. Edwards Sons

coming year with real enthusiasm.
highly
capable
and
sincere
group of men has been chosen to
represent the various parts of our

am

Clent

securities business.

offices

Partners

is

forward

20

Greenwald & Co. has been formed

A

New York

B.

do likewise.

am

a

Cooper-Hartert
at

Forms Greenwald Co.

to engage

I

The First Boston

in

with

we

Higginson Corporation

Donald

offices

NORTH
no

N.
Y. —Ned
William H. Hartert

by

coming along.

men

these

NECK,

and

formed

with

chosen

our field
of activity to
graduating
seniors.
Other
people do this with success and

Philip J. FitzGerald

competitive advan¬
tage in seeking early markets. The
United Kingdom may well be in
a solid
position. Over the longer

within

so

as

group of men.
the industry-

to the necessity of each firm hav¬

Angeles

formerly with

was

Albert Frank-Guenther Law, Inc.

the

Hill Richards & Co.

a

a

merits of

Robert B. Anderson

of

to

Meade

Smith, Barney & Co.

Stock

Exchange firms, including several
western firms, which because of
their location
were
particularly
(exposed to such business, revealed

Education

by

Building to handle fi¬

faculty to present
finance, in¬

pete with other industries by go¬
ing to the campuses of our near¬

San Francisco

made

directed

choose

Dean Witter & Co.

The Stock Exchange

be

Pa. —R. L.
offices in the

coverage of

a

dustry and merchandising

New York

panies

issues.

fine

opened

Title

ing young

William R. Grant, Vice-Chrmn.

strict security places foreign com¬

Relations Committee

the Wharton

on

Surely there is

Wagenseller & Durst, Inc.
Los Angeles
I

strong

nium

ing. Mr. Ingold

again, senior men from our
industry will join with professors

has

nancial and institutional advertis¬

committeemen.":

COMMITTEE

own

at

Land

Once

Johnnie

William S. Hughes, Chairman

nuclear

absence

PHILADELPHIA,
Ingold

subject -matter designated as
being of greater interest to the
students by the member firms.

will

Richard de La Chapelle

world.

sense

devoted

to

COMMITTEE

(4) Export business of English
companies in selling reactors to

Individual Member Regulation

nu¬

NUCLEAR INDUSTRY

consideration.

uninformed.

participate in the

Respectfully submitted,

important

an

the

be

engage

(3) Government policy regard¬
ing participation of domestic com¬
panies in foreign projects. Politi¬
cal

exploitation of the

in

to

presently available—is the activ¬
ity which has been and in 1956

propulsion project has been great¬
ly accelerated.

bringing

the

is

anxious to

.

attention

broader

time

have

submarines

aircraft

—

more

all supplemental to the correspon¬
dence
courses
and
text
books

decade
of

a

forth

R. L. Ingold Opens
Own Adv. Agency

private companies, both domestic
and foreign, either active in or

nu¬

Success

area.

published

coming
broader course has been

as

expert

next

Such

Spring,

this

For

data-relationship may not only
have a bearing on AEC operating
policy, but almost certainly on
the planning and projections of

scheduled for construction. It

now

clearly apparent.
We have,
perhaps, been too cautious in fail¬
ing to adopt a bold and forthright
public

materials.

of reactor devel¬

the

an¬

concerning the ade¬
of the stockpiles of fission¬

quacy

*ipast and present program is seen

which

business

our

are

publicity

by 1965.
Official
government

(5)

clear

clear

potential harm to the public and
embarrassment

For

rod

set

nouncements

development of younger

executives.

reactors

may well equal that of
the United States and the United

has contributed greatly to¬

course

ward the

nuclear
military problem, Ger¬
many's investment in commercial

efficient self-

more

self-policing. It is evi¬
dent that the machinery of inves¬
tigation and regulation is often too

developing

to

Germany.

Atomic energy in its applied form
is her type of
industry. With no

able

fusion.

of

means

guid¬

(1) Technological "break¬
throughs" in the areas of waste

>

again

and

provide

Developments

Watch

regulatory
,

and

they

safeguards

'framework.
We

Trends

are

constructive approach

a

would

individual firms.

principle

revisions

soundly conceived
represent

in

that

to

ance

watch. Western

term,

99

than

positions of
leadership.

they
re¬

To

this end the IBA Wharton School

Chicago

New York

Boston

■>

100

The Commercial and Financial Chronicle

(2624)

Continued

from

page

America

33

meeting

I

Chicago.

in

tional Association

A

Busy Year for the IBA

dent of the
tute and

Electric Insti¬

Edison

professors

President of the

Chairman of the

deeply

to

to

We

them

will

are

I

and

greatly

doubt

from

we

other

and

their

advice.

ernment

represented at 13
in
and
New
York
by
various well-qualified
persons on difficult assignments.
We

year.

were

legislative and

organizations,

Washington,

various

committees

available here.
do far
year

and

than
a

aration

are

required in the

of their reports.

ucational

Committee

example, will point
activities of that

up

Convention

our

I

ago,

for

the varied

the associations represent¬

among

the successful fifth year of the
Institute of Investment Banking

ing all segments of our industry
and this has been done. I predict
this
most
beneficial cooperation

held

will

committee, such

as

in

conjunction

with

the

Wharton School at the
of

Pennsylvania

fectiveness

University
their college

—

continue

Your

in

in

increase

to

the

President

ef¬

to come.

years

invited

was

to

recruitment program—the Invest-

be

in-America celebration, which had
21
cities participating this year
and
which
will
have
more
in

other associations during the past
year.

1956.

sociation

We

are

a

the

of

programs

various

These included the Annual

Convention

with

co-sponsor

in

of

of

National

the

As¬

Adminis¬

Securities

five other segments of the securi¬

trators at Vancouver and Victoria;

ties business of the program

the

con¬

American

ducted by the Joint Committee on

Convention

Education

tion)

sity.

at

New

Under the

York

Univer¬

college

program

in

Association

Bar

(Municipal Law Sec¬

Philadelphia;

and

Association

Transportation

the
of

the correct

of

also invited to the excellent

Board

Annual

Meeting

of

the

Invest¬

until

of

the

co-sponsors

American

Conference

Investment

held

in

Bob

Craft

Orleans

New

has

in

several

attended

meetings

subsequent

March.

in

connec¬

tion with development of this or¬

ganization

has

and

represented

admirably.

would

that

all

The

received

the

periodicals

interests

of

have

has

and

the

in

Chicago, telling them of
asked

them

received

heartily

of

be

the

recommend

ones.

that
that

so

better

a

I

suggestions

excellent

continued

be

our

problems.

for

some

this
there

understanding
activities of

and

purposes

Association.
also

I

that

year

look critically at ourselves as
industry to be certain that we
are
serving the public as effec¬
tively and constructively as pos¬
sible. After seeing our Association
membership in operation in all
parts of the country I feel con¬

we

York Stock

Exchange

Midwest Stock Exchange
American

Stock Exchange

(Associate)

fident
!

•

Jay N. Whipple

John

Ernest F.

D.

Ames

Sherburne

Francis

R.

William

Hartshorne

Robert

B.

Harold

Schanck, Jr.

Leslie Wagner

Kerr

D.

A.

Gordon

S.

Albert J. Payne

O'Brien

H.

A.

Graver

R. Edward Garn
Evans

Spalding

The

to the investing
acting accordingly.

Alvin

H.

Hayward

this

JOHN J. O'BRIEN & CO.

underwrite

of

in

the

members

that

of it.

view

In

the

IBA

found

we

given

June

has

of

this

ourselves

Your Execu¬

and

serious

Governors

consideration

to this problem all year and have

two

STREET

DIGBY 4-0700

fundamental

mind:

should
NEW YORK

6-8161

deal in

On

both* sides

-on

Committee

have

in

WALL

and

bonds.

Congress.

fact

the

kept

RANDOLPH

this

to

tive

Principal Exchanges

ONE

the

Bill, which per¬
subject, was intro¬

in the middle

Exchange and

S. LA SALLE ST.

been

Bricker

controversy,

Members

231

has

year

revenue

duced

CHICAGO

Controversy

the
most
difficult
which we have had to

certain

the

will

of

called

amount

be

to

in

less

or

than

in

them

as we

I

companies and their salesmen
selling variable annuities should
much, if not more,
regulations than that now apply¬
ing to issuers of corporate secu¬

have known

the

the rules of the

or

"annuities"

contract is

other

a

"security"

than

judgment.
1933

1934

and

the

sale

the

You will hear much

variable

supervision of the

State

Insurance

that

(1)

and

in

most

favorable

IBA

has

National
ment

Sale

would

Companies and

would

attempting to

variable

annuities

The

change
been

tional

Commission

formally asked
Association

Driers for
a

Securities

the

In all of my

conferences
I have

their

is

dealer

a

and

vital and

however,

important
to

up

as

sale
ness

of

such

securities

is

will
not

be

resolved

by the IBA.

fied dealers have attempted to do

Securities

to whether

over

the years.

the unqualified

security,

We do not want
dealers placed in

public

just

in

Congress and

While this prob¬

was

Fairman, Harris
Members: New

&

York Stock Exchange

Company, Inc.

—

Midwest Stock Exchange

in

should maintain

position.
the

secret

the
..

,

•-

Members:

Exchange, American Stock Exchange (Assoc.)
Midwest Stock Exchange,
Chicago Board of Trade

Chicago Mercantile Exchange




The

ballot

entire

should

be

taken

membership

Corporate and Municipal Securities
•

Gov¬

accordingly decided that
of

a

209

S. La Salle Street

of

Chicago 4, Illinois

the

CHICAGO 4

ing of this ballot to be handled

Oct. 15, 1955. Results of the ballot
will be delivered by Arthur An¬
dersen

&

Governors

2-0560

time

to

this
the

Board

our

of

Convention, at
results

will

be

known for the first time
by any¬
one

Teletype CG 2296

Co.
at

in

will

ernors

what

the

use

Having

IBA,

the

undoubtedly

shall

the

and

be

made

ballot

•

en¬

tirely by Arthur Andersen & Co.
The balloting was completed on

which

Telephone DEarborn

situation.

IBA—the distribution and record¬

New York Slock

209 SO. LA SALLE ST.

Distributors of

strictly neutral

however, it became a
legislative proposal and

different

ernors

a

With the introduction of

Bill,

definite
a

Renshaw

busi¬

telligent guiding of the investing
public which experienced quali¬

the discussion
stage, the Board decided that we

&

a

quite different from the in¬

interest, and (2) that the question

lem

Rodman

this

question

the

Gov¬

,

52 Wall Street
Gary,

Salina,

of

it.

completed

—

Emporia,

Garden

City,

Direct Private

Wichita

Kan.

Wires to:

W. E. Hutton & Co., N. Y.
New York Hanseatic
COMPLETE

Corporation, N. Y.

TRACING FACILITIES

SPECIALISTS

decide

New York 5, N. Y.

Indiana

IN

—

Granted,
production of

security."

time, I feel that the promotional

recently has
by the Na¬

"variable annuity" is a

year

country

"know

discovery

industry;

as

of

the

their

uranium

Ex¬

as

ruling

a

all

press

they

know

be

and

and

that

they should be recognized
being securities and regulated

up

of

sale

throughout

that

to

pointed

the

suggested to the investing public

the

sold

such.

have

talks

asso¬

see

are

Venture

and

Stocks

unqualified dealers.

Invest¬

other

Uranium

of

which
has
penny uranium
and venture oil stocks by what I
consider unqualified salesmen and
I

been

with

very

Another serious problem

respec¬

of

watched

be

Oil

position.

Association

ciations in
if

tax

cooperated

should

an¬

respective states and would have
a

it

closely.

Commis¬

device

new

about

principles

the

decided

be

This

more

problem in the months ahead

for

investing
regulation to

of

who

regulations applicable to the

this

the

nuities would be subjected

the

under

"variable annuities"

of

sale of securities.

our

enacted

were

protection of
public.
The only

permit

thousands of insurance
are
not subject to

many

the

as

securities

of

salesmen

The Securities Acts of

the

which

by

nothing
in

sale

misnomer

so-

inasmuch

a

be

the

We

therein.

dealers

and

should not stand aside and

game,

sale of such

this kind of

tive

rities

with the regulatory require¬

applying to the

to variable annuities, my
is that the
insurance

be subject to as

past.
We perhaps
quarrel with this change
of
concept; that is primarily a
problem of the life insurance in¬
dustry.
We can quarrel, how¬
ments,

annuities

the
advantages.
the literature which
up to this time with

seen

reaction

the

variable

of

upon

have

respect

cannot

ever,

sale

involved

outweigh

Based

premiums paid.
Obviously, this
changes the concept of insurance
and of annuities

the

to

industry

insurance

far

seems

disadvantages

the

that

It

business?

insurance
me

the

away,

more

If insurance

plant or sales organization
thereby diminish its effec¬
with respect to normal

life

Premiums

the

or

we

tiveness

be invested in equi¬
policy should be dis¬

pass

that

agree

agency

and

policyholder
the amount
paid back would be the propor¬
tionate asset value of the annuity
units
involved, whether the
should

all

probably

companies should succeed in sell¬
ing a large volume of these socalled
"variable
annuities,"
to
what extent might a major de¬
cline affect the present standing
of the insurance industry and its

issuance

contracts

or

1930s

have substantial fluctuations
the stock market at intervals

in

compa¬

the

high

The

annuities.

in the years to come.

you

sioner.-

Bank-Dealer

mitted to

insurance

con¬

present

may

completely circumvent the SEC
registration
and
other require¬
ments, the NASD regulations, the
Blue Sky administrators of the

"Bank-Dealer controversy" — the
desire of some banks to be per¬
Joseph M. Fitzgerald

a

As

have

Probably

tains

Other

responsibility

great

22,

New York Stock

rec¬

Krell

Bray

Bent

consider

David

do

s."

e

annuities."

paid would
If

i t i

their

variable

of

has

that

are

we

public and

problem

John J. O'Brien III

members

our

the

which

Partners

William T. Bacon
Harold H.

that

ognize

"policies"

that

is

us

proposing

"variable

called

suggested last

an

New

several

continued,

many

been

and

a n n u

are

in

newspapers

the

interests

"variable

of

problem

concerned

ties.

investing public
and the industry throughout the
country. In addition, I have called
upon individual members of the
press in their offices in New York
varied

Another

fixed dollar

on

proved that there may well be no
such thing as a "new era," and we

Problem of "Variable Annuities"?

has been

varied subjects.

on

believe

re¬

coun¬

we

press

numerous

and

the

resulted

and

in

I

editors

cooperation

excellent,

This

conferences

parts of

from

columns
and

such

18

financial

porters in

try.

to have had the
during my admin¬

istration.

gravely

and

standing with the public by sale

inasmuch as this has
period of heavy con¬
troversy, and I am glad to have
it resolved, rather than to be in
the position of having "passed the
buck" to the succeeding admin¬

nies

of

out

tracts

over

the

know,

had

63

held

paying

istration,

been

I

with

ing to jeopardize their, .record of

intensify

direction

have

glad

settled

been

companies would be will¬

surance

this

but personally I

year,

very

matter

our work in
improving our
public relations. We have made
more
progress
than I expected.
Including the usual press confer¬
ence
at Hollywood, Murray and

the

our

Members

am

next

have

Congress.

Speaking personally, it is diffi¬
me to understand why in¬

secret

a

the

cult for

new

at

The matter of

could

the

Anything
hereafter wnl

installed

Depending

Commission.

the

Commission's decision,
and, indeed, possibly on the tax
problem
presented, it may be
necesary
to take this matter to

be¬

appear

question is otherwise be¬

the

upon

to date.

place

be

meeting.

ada at

IBA was one
of the Inter-

to

Thursday, December 15,1955

.

fore

that

event

responsibility of the
to

ballot

Murray Bay.

the

.

and

Governors has been

one

takes

the

be

ment Dealers' Association of Can¬

will

New York

Board of

our

is

Congressional hearings. It is
to me that the position of

which

National

I

Chicago

the

attended

clear

of the Conference
Organizations.
We

effort

j7nvesfmenf(DGCiz?~iYiG&

have

three meetings

and

n/izppie o uo.

I

program.

in

requested

Association

have

^Sacon,

members

are

we

fore

we

just a year

promised to do all I could
to continue the close cooperation

The Ed¬

national

their

on

radio

I also stated here last year

Organizations
At

of Manufactur¬

Association

our

prepared to reflect the views

its

have
participated in two varied TV
programs. Representatives of the

Cooperation With Other

prep¬

report,

speak

the IBA

members realize,
deal of thought and

are

other hearings

Denver

throughout the

many

great

research

which

our

These committees

work

more

of

reports

to

were

Departments of Gov¬
five times during the

take home for the benefit of your

the

our

that our im¬
portant Governmental Securities
Committee met with the Treasury

urged to examine and

are

of

operation

industry.
It is noteworthy

indebted

no

benefit

and

comments

You

have

and

the

first hand

and learn at

see

mechanics

Federal Reserve

Board.

of the
York

part

all

from

of

hookup

country are brought to New

Georgia
Power Company; and Thomas B.
McCabe, President of the Scott
•Paper
Company and former

now

ers

that

means

accepted the invitation of the Na¬

.

LOCAL

MARKETS

"

•

Volume 182

Number 5490

The Commercial and Financial Chronicle

..

.

ments

the same

of our industry and
are should further expand our econ¬
reducing the amount of available omy. In this expansion we have,
securities for the non-institutional a vital role to
play, as we have
in the past, and I am sure we will
investing public.
All of these developments are live up to our opportunities and
clear indications that ours is a responsibilities. I think the
young
dynamic and highly competitive man coming into this business
industry, and that is as it should today who is fitted for it has a
be, but at the same time these great future ahead.
And
without
developments point up the neces¬
going into the
sity of being ever watchful of un¬ matter of foreign policy, it must
necessary or
arbitrary obstacles be clear to all that the health of
placed in the way of the normal our economy is vital to the econ¬
underwriting business — whether omy of the other countries of the
they be governmental regulations, free world. It is imperative, there¬
tax considerations or
otherwise, fore, that we do all within our

category with the legiti¬
dealers, wnich could make
vulnerable to becoming a po¬

mate
us

litical

iootball

through the

such

as

we

were

the early
1940s.' This year we have tried
and, I believe, succeeded in estab¬
lishing a substantial public record
of

1930s and

which is

constructive action

for^the

starting-point
come.

: :

years

a

-

to

.

'

■

v

Well, that about'" concludes the
of my

account

of

stewardship,

the ; activities

of

some

various

our

committee's and others, and
of

I

some

problems during the past
a busy year, as

our

indicated

warding

the

at

one

outset,

a

thereof—so

continue

re¬

and, I think, a productive
one.
But before closing, I should
like to make a few gratuitous per¬

think

dustry has

seen

us

in from the

and

to hem

standpoints of the
livable

margins

of

it was compulsory
bidding and private
placement, and only recently we
have seen very large amounts of
financing by means of private
placement without the use of an

First

profit.

competitive

investment

advisor.

.

banker

The

even

proposed

as

an

Fulbright

Bill would have an important vol¬
ume

impact

upon

Counter Market.

confronted
"variable
noted.

the

I

prosperity is
knowledge and extends

maintain

healthy,
vigorous and growing economy in
the months and years ahead.
And

perhaps

a

should play a
larger direct part in this all-im¬
portant
current
battle
for
the
minds

of

men

examine
and

we

and

everyone

of

some

old

our

re¬

slogans

bank and which

will continue

as

its headquarters.
The

15

Broad-35

Wall

Street

financial district in terms of rent¬
able
area.
Acquisition of the

blockfront
tween

Broad

on

Wall

Street

Place, and about half the frontage
on

Wall between Broad and Wil¬

liam.

The

bank will

own

land

a

of nearly 40,000 square feet,
about half that of the entire

area

or

Wall-Broad-Exchange Place-Wil¬
liam block, often called the choic¬
est in the financial

district.

-

space

& Co. has rented
several floors of the 15

on

Broad-35

Wall

Building for a
number of years, carrying on an
important part of its operations

aganda and othewise. I

comes

fairness

President Jack Young of the In¬
vestment Dealers' Association of

free
additional
space for use by Morgan's without
disturbing present
tenants
and

the nation. With the present gross
national product at an all time

Canada

will

he went into this problem at con¬

available for rental.

high of $392 billion, it has meant

siderable

hattan

that there have

the

Over-the-

Then too, we are

questions like
annuities," already
with

We have also observed the

development of long-term bank
loans which formerly were underwritings for our industry.
Each
of these are affecting varied seg¬

with

which

never

it

has

been

at¬

more

at

impressed

by

at

length

phrases

in their take-home pay, than there
is at the present time. Proposed

scribe

life

expansion

plans

predictions

was

much

address

of

and

of

questioned

using such
enterprise" or

our

which

tries

the

Murray Bay, wherein

wisdom

work, with higher wages
and with more purchasing power

our

men

of

and

of

indus¬

many

of

several

foremost economists would

our

"free

as

"competitive
our

in

enterprise"

view

of

to

and

economy

the

de¬

the economy of the
should continue at its
present level or higher for some

and

country

cisely describing our way of life.
President Young stated his prefer¬

time to

ence

come.

correct that

in

the

our

are

population will be

of

200,000,000 by 1975,
the intervening years

excess

surely

If the estimates

in

momentum

thus

created

of

ways

pre¬

lor the term "consumerism."

I have

his

better

thought

a

comments,

great deal about

and

perhaps

dividual

"in¬
be a

enterprise" would
happy phrase to point up1 the
importance of each individual and
the
of

fact

our

be,

that he

is

the

further

some

continue

office

at ll

space

Chase Man¬
to

operate

Broad Street,

building to be acquired by
four-story

Morgan

bank

Wall, known the
world over as "the Corner," was
completed in 1914. Under the di¬
rection
of
J.
Pierpont Morgan,
prior to his death in the preceding
at

expansion.

as

any

conceivable future

Located in the "Cor¬

building, which will continue

the

bank's

principal building,

staff

hope

we can

effective and larger part

an

finally, I

the

am

and

sponsors

managers

the

f

o

National

Securities
of
f

tual

mu¬

ds,

u n

according
an

t

o

announce¬

ment

by H. J.

Simonson, Jr.,
President
the

f

o

corpora¬

tion.
Mr. Wood¬

ruff, who will
serve

as

search

Ailing Woodruff

re¬

a

execu¬

tive in the

division,

corporation's industrial
specialize in the

will

automotive and
tries.

He

President

machinery indus¬
previously was a Viceof

Management

ning, Inc. and prior to

Plan¬

that

Past President

Consultants, Inc., and Standard &
Poor's Corporation.

With Milwaukee Co.
MILWAUKEE, Wis.
W.

Gifford

with
207

The
East

bers

has

Milwaukee

Michigan
the

of

—

Charles

affiliated

become

Company,

Street,

Midwest

mem¬

Stock

change.

Central Republic Company
(Incorporated)

209 SOUTH LA SALLE STREET

esteemed

our

Joseph T. Johnson,

CHICAGO

who has said many times that we
should "stand up and be counted"

U. S.

on

GOVERNMENT, STATE, AND

national

those

questions

try. I think it

MUNICIPAL BONDS

are

can

more

important in the
we

served
been

FRANKLIN

2-7070

Bell

•

System

as
an

effective

years

continue to do

It has been

COMPANY

as

indus¬
be said that we

to

if

so.

INVESTMENT

SECURITIES

privilege to have
your President. It has
exciting year—the ex¬
a

cherish.

New York

J. P.

Morgan Co. to
Acquire New Building

NEW YORK REPRESENTATIVE
BROAD ST., DIGBY 4-7400

Bell

OF

and

come

periences of which I shall always

Teletype CG 368

CHICAGO

15

UNDERWRITERS AND DISTRIBUTORS

beginning to do just
I think the IBA will

and
prove
to be

NORTHERN TRUST

well

our

least

at

that,

THE

as

directly affecting

System Teletype NY 1-853

Milwaukee

St. Paul

Des Moines

Omaha

Minneapolis

Cedar Rapids

Denver

Member of Midwest Stock

St. Louis
Galesburg

Exchange

J. P.

Morgan & Co. Incorporated
preliminary
ar¬
rangements for the acquisition of
the 38-story office building at 15

has

concluded

Broad-35
York

SINCE 1890

Wall

from

the

Street

Chase

of

the

Board

of

John

J.

Chase

McCloy,

and

Chairman

consummation

of

the
105 W. Adams

clearing of details, probably re¬
quiring a number of weeks. Terms
of

the

transaction

are

not

to

i

f

be

but Mr. Alexander
long-term financing
the buyer
and seller provide for payment of
the purchase price over a period
of years from operating revenues
of the building.

stated

Municipal Obligations

that

arrangements between

Toll Road Facilities

Bridge Revenue Bonds
Water & Sewer Revenue Bonds
Public Utilities

LOUIS

Underwriters and Dealers
MUNICIPAL and PUBLIC REVENUE BONDS

The Morgan chairman called the
acquisition "an ideal solution to
our space problem, which has be¬

Securities

ST.

St., Chicago 3, Illinois

announced,

Underwriters & Distributors

come

2

more

acute with the contin¬

growth of our operations."
The building to be acquired ad¬
joins on two sides the 23 Wall
Street Building, long a landmark
uing




INCORPORATED

approval of formal documents and

Banking

105 W. ADAMS STREET

NONGARD & COMPANY

of

transaction awaits preparation and

of Investment

CHICAGO 3

Morgan's,

Manhattan.

Final

Industrial & Corporate

New

Manhattan

Bank, it was announced jointly by
Henry C. Alexander, Chairman

Stifel, Nicolaus & Co., Inc.
65 Years

in

314 No. BROADWAY

^

at the corner of Broad and Wall

Telephone
DEarborn 2-6363

was

associated with Standard Reserch

always mindful

of

words

of

Research:

real basis

in this effort in the years to come.
of

&

Corporation, 120 Broadway, New
York City,

it was designed to be large

enough for

ner"

23

management

Securities

However that may
want to leave the

merely

I

And

a

Morgan's.

year,

investment
National

economy.

idea with you, and I

play

in the

building

indicate that

devise

branch

wil

The

these phrases have been
distorted by our enemies. Perhaps
we do need to go on the offensive

will

make

in

manner

Naf'l Sees. Research

feasible under its building

program,

of

way

rooms.

Ailing Woodruff has joined the4,

Series

J. P. Morgan

there. Removal of the Chase Man¬

which

offices,

department,"
depart¬

investments

Ailing Woodruff Joins

be¬

Street and Exchange

hattan from the space it occupies
in the structure, when this be¬

Eisenhower

phrases

executive

banking
and

ment, and dining

building will give the Morgan
bank
possession of the
entire

enemies

economy.

general

101

Building is the fifth largest in the

in this battle have given new and
distorted meanings by their prop¬

nearly all parts of the

bank's

the

are

trusts

tempted to conduct the affairs of

decade, our in¬
various develop¬

number of issues available for dis¬

tribution

en¬

to

power

Streets, which houses the Morgan

Administration,
in my judgment, can take much
credit for this happy situation be¬
cause of the wisdom, honesty and

to

The

ments which have tended

we

obstacles

should

we

common

past

compete

When

unfair

can

Our present era of

Hemming: in the Margin of Profits
the

to

we

vigorously take
the lead in seeking their removal.

sonal comments about the future.

Over

that

able

basis.

such

counter

cerned

be

to

fair

a

on

far as I am con¬

so

lack

or

It has been

year.

(2625)

Teletype
CG 385

Ex¬

102

The Commercial and Financial Chronicle

(2626)

Continued

from

Report of IBA Aviation

New

given to asking the ap¬

air¬

the bankruptcy laws to
airlines

equipment

with

the

certificates

panies in their direct negotiations
with the carriers.

roads there is

can

services

statistical
basis
rates

will

will

interest
competitive with those being

offered

the

by

insurance

com¬

in

common

certificates,

trust

railroad

have rarely been

airline

found

purchases".

in the fact that the

which reserves

(j)

railroad rolling stock to

financing,

session

in

property

the

of

take pos¬

able

investment

the

dustry to play
role

in

of

com¬

Largest

1955
1954

(Interim

of

Taxes*

Income*

1.1'/c

$178.6.

52.6%

4,104.7

298.9

1953
*

Average taxes

for the

Martin

flnterim
1954

in

reports

$161.2
145.2

7.6

260.1

6.8

293.8

of

below what most

Pierce,

in

1955

are

are

the

published

latest

for the comparable periods

TABLE

June 1951

Securities

=

Five

Fairchild

Vought

McDonnell

General Dynamics

North

Grumman

Boeing

Northrop

December.

American

as

Aircrafts

Eight
Aircraft

% of

as

Curtiss-Wright

Lockheed

Douglas

Martin

December.

Republic
United

SOURCE:

1953--June

Annual and interim reports.

100.0

106.3

114.1

107.3

106.1

99.8

94.1

86.1

110.6

101.2

114.7

99.6

86.8

121.0

105.5

108.5

92.7

87.0

120.9

113.5

111.1

83.5

75.2

143.4

129.1

129.2

90.7

70.2

217.4

168.3

154.0

147.6

95.8

308.5

200.3

175.1

190.2

108.6

311.0

177.6

..

._

December.
1954--June

_.

__

December.
1955--June

base

_.

-

NOTE-—Figures

H. M. Byllesby and Company

computed

fAmerican, Eastern,
$Boeing,

.t

Pan

Standard

;and

Poor's

Index,

adjusted

Trans

World,

TABLE

stocks

bonds

1953

Bonds

1954

Hydraulics

General

Public Utility—

Industrial

—

Common

$1,500,000

Telephone Financial 6-4600

Teletype CG 273-2860

,

that

$300,000

New

York

—

Philadelphia

—

Minneapolis

1

7 6,371,145 "

Aviation

Robinson

and

$2,960,566

$8,497,449

$76,901,145

TABLE

rities

Shillinglaw, Bolger
MEMBER

MIDWEST STOCK

of

&

Co.

-

1953

.

Bonds

EXCHANGE

Established 1933

.

1954

9

Debentures:

or

business from

Convertible

Equip.
Air America

Aviation

Equip. Corp.—

Stock:

New

York

York

North

299,500

Airways

1,250,000

Central Airlines__

1,080,000

U. S. Airlines

SOUTH LA SALLE

STREET

Braniff

Airways




'

$4,887,009

at

Street.

Pick

is

conducting I

business

Central

from

Park

an

offices

West,

New

a

branch

Place

under

office
the

at

121

direction

of Doris E. Cole.

Opens Branch Office
SOUTH

$299,700

$5,758,050

Dealers

Digest)

MIAMI, Fla.—Standard

Securities Corporation has opened
a
branch
office
at
6601
South
Dixie

*Estimated.

Investment

se¬

$5,758,050

Total

(SOURCE:

a

Fewel & Co. Branch

opened

$3,187,009

Teletype CG .1070

in

offices

City.

Hanes

$209,700

CHICAGO 3

Telephone STate 2-5850

from

VISTA, Calif.—Fewel & Co. has

*120,245

Meteor Air Transport
120

.

287,264

Pacific Northern Airlines
★

333

$150,000

Mackay Airlines

INDUSTRIAL SECURITIES

engaging

17th

investment
at

Common

is

Opens

Calif.—Kenneth

business

West

Leopold

$400,000

Aviation Equip. Corp

of

48

Leopold Pick Opens

Preferred Stock:

UNDERWRITERS and DISTRIBUTORS

at

name

$300,000

Debentures

Convertible

ANA,

Provost

-1001

Trusts:

offices

Avenue, under the

K. L. Provost

curities

$1,000,000

our

N. J.—Joseph
engaging in a secu¬

is

SANTA

Months, 1955

L.

Aviation Equip. Corp

opportunities for

Joseph Mandell Company.

IV

Air Transportation Industry Public Financing
>■

.

years

possibility

every

WALDWICK,

Hudson
Investment Dealers Digest)

(SOURCE:

is

Forms Jos. Mandell Co.

$6,901,145

Mandell
Total

that

us

and

business in the future."

230,000
$1,460,566

we

to¬

ones

research will provide new

our

outlets

'*

have

lie

There

ago.

"

I

those

practically unknown io

was

Garrett Corp.-

atom

bigger markets
beyond the horizon.
Within a comparatively few
years,
for
example, the petrochemical
industry has grown to be a signif¬
icant .outlet for oil, and jet fuel

$6,497,449

0

oil

are

conventional

as

uses

usually

299,000

Aircraft

Colonial

of

uses

describing

new

$161,556

Helicopter
Fairchild Engine___

the

day. Experience has taught

1,000,000

Nagler

Street, Chicago 3

from

areas.

expanded

been

think of

Stock:

Helicopter

derived

speeds up the technology and liv¬
ing standards of relatively under¬
"It is also well to consider that

$40,000,000
^30,000,000

Gyrodyne Corp.

energy

to about 2% of

see

the

$2,000,000

Dynamics

Doman

domestic
up

The proportion will un¬

developed

Preferred Stock

American Stock Exchange (Assoc.)

the

ones.
The net effect, as
it, will be actually to en¬
hance the use of liquid fuels, as
we

$70,000,000

Philadelphia-Baltimore Stock Exchange

135 South La Salle

Re-

i
77

Municipal Bonds
Members Midwest Stock Exchange

into

doubtedly be higher abroad, and
there
also
the
applications
of
atomic energy will chiefly be
spe¬

a

9 Months, 1955

Lockheed Aircraft

Railroad

the total.

/,

Servomechanisms

to

needs may add

power

Convertible Debentures:
Greer

itself

some

energy

contribution

Financing

Debentures

or

work

The

take

cialized

North American,

Public

probably

pattern; we ex¬
pect, for example, that by 1975 its

III

Industry

to

world's

jJMM

Manufacturing

will

time

United.

Douglas, Lockheed, Martin,

reasonably economic basis.

atom

Y

public, United.

Aircraft

to

pretty clear

seems

that the world needs, and will
use,
all the energy that it can get on

100.0%

1951.

American,

Cnrtl«s-Wright,

in providing energy

a

from

period of June,

Mfg. Cos.$

*420 Industrials, 20 Rails, 40 Utilities.

(Incorporated)
•"

100.0%

Composite

welcomes the atom

partner

a

for mankind. It

Composite

Cos.t

..

oil, I think

understand why the Jer¬

company

as

% of

100.0

1952--June

in demand for

can

sey

100.0

__

Rathbone

in¬

j

you

109.3

1951--June

J.

po-

1

a

creases

100

Airline

t i

e n

1951

Since

Airlines

Composite

companies.

really

enormous

Compared with the General Market

includes:

Bell

Chance

"In the face
of these

480 Stocks*

NOTE—Table

Concerning

Company

Angeles

II

Aviation

sup¬

ply."

t

of

a

in

bone stated:

E. F. Hutton &
Los

Index

the 15

the
"as

this, Mr. Rath¬

2.4

companies have experienced
1953 and only a 5% tax rate

figures of
of 1954.

Fen-

Beane, New York

Action

com-

wel¬

energy

Ripley & Co., In¬
corporated, New York

3.5
3.7

.

interim figures

pany

partner

Skinner

L.

Murray Ward

Lynch,

&

ner

3.7%

Price

are

that his
comes

Harriman

York

Merrill

Sales

156.6

51.1
65.2

509.0

tax liability for Martin in
:

1954.

Income

248.9

51.4

450.4

group

because of the lack of any
for

153.7

7.3

6,705.2

-

Net

Pretax

6,581.4

1954

sey), states

*

atom

David

Maurice H. Bent

As %

As % of

Sales.

$339.8

Reports)t

,

.

Pretax

$4,415.7

Reports)t

New

Income

Sales

(Interim

■

•

<

As %

.

Angeles

New York

Smith, Barney & Co.1

.

Oil

Co. (New Jer-

j

Barclay Harding,

the

Standard

Cortelyou L. Simonson

Chairman

(in millions).

of

dent

Morgan Stanley & Co.

I

be¬

on

William R. Staats & Co.
Los

address

an

curity Analysts in New York City
Dec. 5, M. J. Rathbone, Presi¬

,

SECURITIES

AVIATION

of

course

all the

use

economically

get

can

fore the New York Society of Se¬

Richard W. Millar

-COMMITTEE

Aircraft Manufacturers

Fiscal Years—

New York

it

In the

McDonnell

N.

Blyth & Co., Inc.

Respectfully submitted,

the- rail¬

rolling stock to

the

Summary of Sales and Earnings of the 15

:

Donald

in¬

important

more

a

world needs and will
energy

New York

the airlines.

of

William
TABLE

-

York

Bear, Stearns & Co.

meeting the capital needs

road.

bank¬

«

banking

J.

Rathbone, President of
Standard Oil Company (N. J.)
tells New York Society of Secu¬
rity Analysts, it is clear that the

Salim L. Lewis

pliance with the terms of the lease

An

for this is to be

reason

special provision

a

77

right of the trustee owner of

the

so

used to finance

equipment

important

Section

in

Equipment Trust Certificates:

Equipment

M.

Kuhn, Loeb & Co.
New

.

_

Energy Partner

Y

half of the equipment

a

* i

-•

Hugh Knowlton

craft trustee owner,

justify

that

rate on

Views Atom As

Courts

■*

acting on be¬ in the event of bankruptcy, as the
trust certif¬ equipment trust certificates issued
icate
holders, a
clear right to
to
finance
railroad
equipment
repossess the equipment in case of
purchases. It is felt that the pas¬
proceedings under the Bankruptcy
Act, whereas in the case of rail¬ sage of such legislation would en¬

they

W.

Atlanta

trust

rights,

same

Standard Oil Head

Co.

Courts & Co.

enable the

issue

to

&

Thursday, December 15,1955

..

York

Richard

to amend

introduce legislation

to

ruptcy laws do not give the

loans
unless
offer securities that the

company

be

propriate Committees of Congress

Securities Committee
surance

Cohu

mittee recommends that consider¬
ation

Cohu

Henry W.

Com¬

Securities

Aviation

vThe

49

page

.

Highway

under

the

agement of Stanley Raskin.

man¬

Volume

Number 5490

182

Continued

from

The Commercial and Financial Chronicle

...

wood

55

page

(2627)

ties"

sideration

' •

■

.

f

n

Legal Investment Laws
been

have

There

laws

of

a

to the legal
states

Financial

of

type

that

No action was taken on

action in

Law

this

Committee,

cipally

to

tention

would be invested prin¬

in

'present tax laws,

certain

obtain

Pur¬

annuities"

"variable

under

would,

stocks.

common

cf

chasers

advantages

tax

invest in in¬
vestment company shares and over
most persons who invest directly
over

safeguards

Federal

and

established

state

by
for

legislation

the- protection of investors

would

,v

"variable

annuities"

None of those bills

intro¬

were

duced this year in the

legislatures

common

It

who

persons

stocks.

appears

that

"variable

an¬

proposals to authorize

this

report

to

coop¬

Peters Bros. Formed

adoption

CHICAGO, 111. —Warren J.
Peters and Sylvia Peters have

model law

in

some

as

adopted this
with

cases

formed

minor

with

modifications, in California, Colo¬
rado, Connecticut,j Georgia, New
Jersey, North Carolina, Ohio and

was

pre¬

Variable

Annuity Life In¬
Company of the District
Columbia was organized this
in the District of Columbia,

year

the

wnere
a

company

organization of such
was
possible under

laws.

present

This

the

Securities

Commission

business.

Wisconsin.
We

to. adoption

given

in

law

that consideration

urge

state

any

securities

of

this

where

to. minors

be

Form

model

gifts

Avery, Rohannon
Firm in

of

constitutes

a

Washington

WASHINGTON, D. C.—Avery,

problem

and that IBA members
cooperate with representatives of

Bohannon

other

in

formed

in

Street, N. W. to engage in

industry

efforts

such

organizations

obtain

to

its

adoption

states.

curities
Conclusion

In

a

has
at

been

2146

Elmer

R.

com¬

Committee
as

welcomes

to how it

ful and offers

to

any

time

problems.'

in

be

Rouse, Brewer Branch

sug¬

be help¬

can

ANNAPOLIS,

of assistance

state

The

Brewer

legislation

Committee

Continued

branch

&

Md.

Becker

office

at

—

have
31

Rouse,

opened

also

on page

Avenue under the management of

104

Hubert E. Strange.

MIDDLE

We recognize that in insurance,
in other fields, there may be

changes

in concepts.

the

companies,

ance

of

by insur¬

view

in

sale

the

annuities"

WESTERN

SECURITIES

believe

We

desirability

"variable

of

the

public understanding of "annuity"

connotating a guaranteed dol¬
lar payment, is a problem to be
resolved by the insurance indus¬

39

South

La Salle

Street, Chicago 3

as

However, we believe that
annuity" is basically

try.

"variable

representing

security
in

stocks

common

sold

Brokers and Dealers

the

under

requirements
other

as

a

should

be

treatment
Accordingly,

that

to

Associa¬

the

UNDERWRITERS

the

to

state

under

securities

acts

Federal

209

S.

LA

DEarborn

Tel

CHICAGO

ST.

SALLE

2-5600

4, ILL.

and

and

Members Midwest Stock Exchange

V

DEALERS

require¬

securities

other

as

are

regulatory

same

ments

that (1)
subjected

assure

"variable annuities"

William A. Fuller & Co.

"variable annuities" and
be
given
like

(2)

PRIVATE

securities

other

under the

treatment

1384

tax

and

securities.

action

Teletype CG

.

a

tion and its members take appro¬

priate

.

regulatory

same

recommend

we

3-7055

interest

an

and

Telephone ANdover

PLACEMENTS

laws.

tax

Teletype CG 146-147
of Securities

National Association

Administrators
The

convention

annual

of

the

National Association of Securities

Administrators

First Securities Company
!

UNDERWRITING

MUNICIPAL BOND DEPARTMENT
TELETYPE

CG

DEPARTMENT

UNLISTED TRADING
TELETYPE

1751

CG

SOUTH

LA SALLE

given

Wire

to

meeting
sion

Offices

Richter

Scherck,
Cohu

&

Co.,

Company,

New

St.

the

of

We

Louis,

Mo.

York

believe

the

IBA

are

the

act.

relations of

cooperative

securities

the

Committee

law

years,

the

underwriting

municipal

bonds

of many

Securities to Minors

of

This
in

in

acts

Mullaney, Wells & Company

states.

Since 1885

Illinois

EXCHANGE

continuing on

and

Gifts

of

STOCK

the

of

securities

the

that

friendly

most

ing

specialized

MIDWEST

with the state securities

administrators

MUNICIPAL BONDS

have

MEMBERS

CG 1234

discus¬

draft

second

uniform

to

basis, as is evidenced by the successlul work this year in amend¬

distribution

RAndolph 6-8800

ad¬

of

Much

devoted

was

proposed

a

We

CHICAGO 3

President

IBA

by

Schmidt.

Walter

3-1520

Branch

135 SOUTH LA SALLE STREET

Mr.

principal

the

HICKEY Sc CO.

dresses, which was well received,

1399

Champaign, Illinois—Cedar Rapids, Iowa
Direct

of

One

STREET, CHICAGO 3, ILL.

ANdover

The
IBA

Aug. 28-Sept. 2.
represented
by
Walter
Schmidt,

on

was

was

134

held in Van¬

Gilbert Osgood (Chairman of the
Legislation
Committee
of
the
Central States Group), Mr. Mur¬
ray Hanson, Mr. Gordon Calvert,
and the Chairman of the Commit¬
tee.

Stock Exchange

Member Midwest

was

Victoria, British Co¬

President

DISTRIBUTION

•

lumbia,
IBA

Chicago

of

and

couver

for

and
71

and offer you experienced, prompt service.

principle a
(prepared
New

the
to
to
a

York

has

approved

proposed model
by the staff of
Stock

Exchange)

parent or other adult
make a
gift of securities to
child with the power of man¬
permit

UNDERWRITERS
;

t

Corporate Bonds

a

agement reserved to the giver or
close relative of the child whom

—

.

^

DISTRIBUTORS
,

*„

Investment Stocks

*

Municipal Bonds

a

H. C. Speer

& Sons Company

ESTABLISHED
•

Field

1885

135 So. La Salle St.

Building
CHICAGO
'Telephone




—

3

RAndolph 6-0820

the
of

giver
this

designates

power

to

be

(the holder
called

custodian of the securities).
resentatives
year

of

the

the
Rep¬

IBA met this

with representatives of the

Association

Firms,

of

Stock

Exchange

the'New York Stock

Ex¬

135

a

Maryland

BARCLAY INVESTMENT CO.

subject to the Federal
Investment Company Act of 1940.

that

Bo¬

principal.

is

pany

P
se¬

a

conclusion, the State Legis¬

lation

at

Beatty
offices

business.

hannon is

'

&

with

that

Act of 1933 and whether the

cf

47th

securities

a

securities

are

Federal Securities

the

to

in

engage

Company
West

Exchange

conclude

"variable annuities"

subject

1647

whether

on

and

will

to

&

Bros.

at

development

focuses attention

now

Peters

offices

Street

surance

resenting an interest in common
stocks.
Accordingly, this Com¬
mittee at its meeting at
Holly¬

at¬

The
year,

gestions

The

as

a

when

NASD

adopted,

were

pared.

nuity" is basically a security rep¬

of

directed

we

as

and

company

security.
these bills

report

such

investments

mortgages,
whereas
the assets cf a "variable annuity"
bonds

in

annual

or

because

of

servative

193p.

last

interest

investors

of con¬
ventional t>pe annuity companies
are
invested principally in con¬

Variable Annuities
the

public

of

ture

number

chased) and (2) the assets

m

In

the

of units received
each year would be determined
by applying actuarial tables to
the total number cf units
pur¬

by the legislature in 1955, but the
Committee hopes to obtain favor¬
able

in

the

of this model law in various states.

but in New Jersey the bills were
still pending before the legisla¬

(the

savings

by

investment

interest

tne value of those units
at the time he receives payment

permit investment
of state
funds in interest-bearing corpo¬
rate
securities
uhder the same
limitations and restrictions which
in

be

the

teed only

to

banks

not

and is guaran¬

"units" (or shares)

many

(Granbery, Marache & Co., New
York)
attempted to obtain an
amendment to section 98 of the

govern

and

of-Maryland,
New
Hampshire,
New Jersey, New York and Texas.

ship of Mr. Gustave A. Alexisson

State

reg¬

state securities commissions would

"variable

summary

York

without

Commission

whereas the buyer of a
annuity" purchases

dollars,

Committee, under the Chairman¬

New

Exchange

be-completely circumvented.
Bills authorizing the issuance of

of these amend¬
ments is in Appendix B.
In New York, the
Legislative
and

and

salesmen

by the Federal Securities

the

important

amendments this year
investment

annui¬

annuity mainly in that (1) the
buyer of a conventional annuity
is guaranteed that annuity pay¬
ments will be a fixed number of

of the New York Securities

Law,-

"variable

"variable
annuities."
A "variable annuity"
would differ from a conventional

preliminary con¬
being given to re¬

is

erate in efforts to obtain

of

by insurance companies and

ulation

the issuance and sale of

New York,

vision

change and

insurance

Report of IBA State
i
Legislation Committee
In

Nov. 30, 1954, concluded
sale

on

the

that

103

SOUTH LA
CHICAGO

SALLE

3, ILL.

ST.

104

(2628)

The Commercial and Financial Chronicle

Continued

from

page

Leo L. Quist

103

increase

St. Paul

Howard

its sincere thanks for
cooperation of group officers
members of group legislation

expresses

the
and

Scharff

Robert O. Shepard

Prescott, Shepard & Co., Inc.
Cleveland

COMMITTEE

Ball, Burge & Kraus

Baker, Simonds & Co.

Arthurs, Lestrange & Co.

Beverly W. Landstreet, III

Pittsburgh

Clark,

Mark L. Baxter

The

Beecroft

Beecroft, Cole & Co.
W. W. Keen Butcher

Sherrerd

Company,

certain

(3)

To

rities

of

J. Darling, Jr.

add

exempt

such

Dallas

.

securities

exempt

or

to

appears

the

registration
not

of

essential to

authority conferred by law upon
an agency of the State to
regulate
supervise the issuance of

or

by

the

or

a

business

secu¬

conducted

registra¬

tion by special order upon written
issue

securities
issuer

and

amount

not

of

in

specific

a

an

125-

amended
ferable

unlawful

security in
provisions

"in

the

and

Practice
fective

amended

filing

a

the

as

increase

to

the

vide

securities

(3)

than

to

in

$300

be

any

section

This

$25).

ther amended to

of

effectiveness

filed

from

for

under

the

to such

then

have

crease

or

to
of

$25,
an

except

for

salesmen

and

increase the reg¬
dealers from

$25

original registration and

and

the

increase

to

fee

$10 for each

re¬

Section

125-2-18, requiring

filing

of

a

notice

to

prospectuses

Attorney General and to every
District Attorney, was repealed.
FLORIDA

The Florida Securities Law
amended effective Aug.

was

3, 1955, as

follows:

(1)

that

company,

the dealers' registra¬

the

com¬

similar

one

thereof.

the

of

in¬

investment

be

fee,
for the filing of the

dealers

fee

filing

to

only

shall

registration of salesmen from

(4)

shall not

and

any

directly

issuer

the commissioner to mail

fur¬

the filing fee for a renewal

case

pany,

sold

been

as

include

$10 to $50 for each renewal

newal

portion of the securi¬

ties described therein

agreement."

amended to pro¬

an

and from $2.50 to

prospectus
law shall expire

months from the date of

or

$5 to $10 for original registration

nor

every

12

to

pay

or

of

thereof,
for

provide that the

as

to

to $50 for

instance
was

interest

required

was

amended to

istration

(prior to this amendment the fee
was

section

The last paragraph of sec¬
125-2-9, requiring the regis¬

tration
was

sale, but not less than $25

more

tion

offered

the

of

tion fee whichever is the greater.

price

of

public,

prospectus

was

sale

proposed

is

either the fee

of

prospectus to 1/20 of 1%
total

a

participation

or

sharing

that such

required

ef¬

fee

interest

profit

to the

follows:

125-1-8

of

a

Fraudulent

July 1, 1955,

(2)

certificates of

prospectus

a

Law

amended

were

Section

(1)

of

Securities

Colorado
Law

for

defining "security," was
principally to limit trans¬

defining "dealer"

and regulations issued thereunder.

Colorado

this

fee

issuer selling securities for which-

the Federal Securities Act of 1933

The

filing

Subdivision (4) of section 125-2-2,

ac¬

the

the

security to transferable certifi¬

cates

the

offers to buy such
with

prospectus

(prior * to

participation within the definition
of

of

cordance

renewal

a

$100

Subdivision

125-2-2,

Securities

solicitation

in the

petition

make

sale

prospectus

from

(2)

of section

April
provide that, in the
any security
concerning
registration statement is

issuer of securities.
exempt

(4)

Colorado

to

be

renewal prospectus was $15).

to

for

for

iee

shall

amended effective

To

an

(4)

Chicago

ing

amendment,

or

secu¬

the public interest or for the pro¬
tection of investors by reason of

Cruttenden & Co.

Seattle

it

securities is

rities

Robert A. Podesta

Harper & Son & Co.

not

transactions to the classes

or

that

Rauscher, Pierce & Co., Inc.

with
above

for

class of

any

commission

Charles C. Pierce

Ellsworth

amount

an

dealer.

a

if

Equitable Securities Corpora¬
tion, Nashville

Paine, Webber, Jackson &
Curtis, Boston

to

exempt transactions

as

transactions

Ralph Owen

Oklahoma City

P.

register

San Francisco

The Small-Milburn

Wm.

in

Irving Lundborg & Co.

William B. Cochran

Sherman

in

to

Chicago

gaged
in
making a
continuous
offering of its securities, the fil¬

pending before the Securities and
Exchange Commission under the
provisions of the Federal Securi¬
ties Act of 1933, nothing in sec¬
tions
125-1-3
through
125-1-8
(the securities regulation require¬
ments
of
the
law)
shall
be

$25,000.

or

George J. Otto

Chicago

Nelson

Company-

Blunt Ellis & Simmons

Clarke & Co.

bond

a

exceed

dealer

a

(2) To require any dealer who
engage in transactions in¬
volving certain exempt securities

Gilbert II. Osgood

John W. Clarke

Inc.,

to

as

shaii

Columbus

Philadelphia

registration

deliver

Dennis E. Murphy

an

was

(1) To require, in its discretion,
any registered dealer or applicant
for

Weil, Roth & Irving Co.

The Ohio

W.

Kirk-

Cincinnati

Topeka
&

&

Stanley G. McKie

Chicago

John

Landstreet

patrick, Inc., Nashville

Vance, Sanders & Company

Butcher

The Arizona Securities Act

Greensboro

of

offer

amended, effective July 3, 1955,
to give the commission the fol¬
lowing new authority:

McDaniel Lewis & Co.

was

deemed

ARIZONA

Marshall II. Johnson

York

Addison W. Arthurs

Harry

to
State Securities Acts—1955

Detroit

Granbery, Marache & Co.
New

*

Summary of Amendments

William L. Hurley

A. Alexisson

Gustave

APPENDIX A

the

1955,

which
Writer

Cleveland

Mullaney, Weils & Company
Chicago

of

case

Peters, Writer & Christensen,
Inc., Denver

Fred W. Hudson

Paul L. Mullaney, Chairman

Company

Seattle
Harold D.

G. H. Walker & Co.

LEGISLATION

accordance

summarized

Subdivision
1-3

21,

Pacific Northwest

St. Louis
STATE

in

capital, be

paragraph 3.

Law

Lyle F. Wilson

Co.

E. Kenneth Ilagemann

Respectfully submitted,

Jones, Inc.

in

provision

result

stated

COLORADO

New York

committees.

&

in

will

the

New Orleans

•

Finney, Jr.

Bear, Stearns &

in

determined
the

James E. Roddy

Report of IBA State
Legislation Committc e

issuance

such

Harold E. Wood & Co.

Thursday, December 15,1955

...

Subdivision

(6)

Section

of

517.05, exempting securities listed
on

certain

amended

en¬

stock

to

exchanges,

change the

was

of

name

aggregate

exceeding $200,000.

(5) To delegate authority, with
specified exceptions, to the Direc¬
of

tor

Securities.

(6) To deposit fees for registra¬
tion of securities by qualification
in a special
account subject to

CORPORATE and MUNICIPAL

withdrawal and return

plicant
for

tion

to

an

ap¬

tldnnciincinfj
*Aew ijtfddleM

Securities
Sept.

7,

(1)

After

1955,

follows:

as

Subdivision

25006,

We will be in

(b)

defining

of section

"Broker,"

•

•

January 1, 1956

our new

INDIANA
120 E. Market Street

ject to the supervision of the Su¬
perintendent
of
Banks
of
the

QUAIL & CO.

State

of

California

Comptroller
the

Bldg.

•

Davenport, Iowa

25006.1

7,
MEMBER MIDWEST STOCK EXCHANGE

of

added

to

provide

does not include

the

Currency

States."

was

1955,

of

or

the

United

of

effective

r

BUILDING
•

Indianapolis 4, Indiana

Member Midwest Stock

July

Exchange

"Broker

broker licensed

a

new

INDIANAPOLIS BOND and SHARE CORPORATION

Section

that

location in the

was

amended to exclude "a bank sub¬

Davenport Bank

•

• • •

CALIFORNIA
The California Corporate Secu¬
rities Law was amended effective

617

•

withdrawing an applica¬
such registration.

Telephone Melrose 2-4321

Teletype IP-298

by the Real Estate Commissioner
in

selling securities described in

Section 25102.1 of this code."

Subsection

(2)

25102, exempting
secured
amended

&

(3)

Bank

and

Public

Insurance

of

was

added

(d)

25102

to

exempt

series

of

notes

maker

or

persons

(4)

Subsection

26003,
tion

Institutional

(b)

regarding
of

fees

the

for

DEALERS

lien

a

prop¬

Municipal Bonds

one

by
associated

of

AND

notes.

of section
determina¬

permits,

Corporate Bonds and Stocks

was

amended by
tion
case

adding a new subsec¬
to provide that in the

(6)
of

split

share dividend

a

the

value

of

the

to

be

of

surplus proposed to

issued

ferred

to

shall

stated

be

share

or

securities

the amount

be

trans¬

capital and

RAFFENSPERGER, HUGHES & CO.

any

surplus account.

INVESTMENT
225 EAST MASON STREET

(5) Section 26008

SECURITIES

to
an

•

BROADWAY 6-8040

Incorporated

amended

i

20 North Meridian Street

Indianapolis 4, Indiana

securities

change
-J

was

provide that the fee for filing
application for a permit to

issue

Km




IN

a

executed

together in the issue

Utility

Municipal

Mutual Funds

Subsection

a

one

Industrial

Industrial

guar¬

erty, when such note is not

SBcnt/s
Utility

was

"any

promissory note secured by
on
a
single parcel of real

SECURITIES

Public

note,

exempt

section

to

WISCONSIN

to

thereof."

antee

SJiiyuitieb //iivi/ecl tn *yi//
MILWAUKEE

(c) of section
secured or un¬

a

promissory

in

privileges

standing

or

evidencing any
rights,
preferences,
restrictions

securities

shall,

in

out¬

where

Member Midwest Stock

Exchange

Volume 182

Number 5490

the New York
the

.

.

.

The Commercial and Financial Chronicle

Curb

Exchange to
Exchange
(4) of Section

(2)

Subdivision

in

put

American Stock

a

Section
tion

3

stock of

corporation sold

a

savings

or

distributed among its own stock¬

Subsection
further

was

517.06, exempting additional capi¬ provide
tal

subsection

new

3.

D

M

of

exemption for
loan association

an

and

of

Sec¬

amended

to

any

in¬

corporated under the laws of any

holders

where no commission or
other remuneration is paid in con¬

ber

nection

eral

with

bution,

such

sale

was amended

state if such association is

distri¬

or

(g)

provision

registration

by notification to
$200.

limiting
of

(3)

(4)

Subdivision

of

supervised

the

by

Subsection

amended to

M of Section

the

regis¬
by qualifica¬
tion, which previously required a

L

Section

of

3

eliminate certain

3, for pre-incorpora-

tion subscriptions or sales of shares
of stock when the number of sub¬

balance sheet

scribers does not exceed 25

than

day not more
days prior to the date of

60

filing,

of

a

amended

was

to

amount

raised

$25,000,

provide

does

the

or

exceed

not

eliminated from that

was

subsection and

that the balance sheet
may be as
of "such
longer period of

was

put into

a new

subsection M of Section 4 but

time,

was

changed to eliminate the provision
the
for exemption where the amount
commission
may
permit at the
written request of the issuer on raised does not exceed $25,000.
a
(4) The exemption previously
showing of good cause therefor."
not

exceeding

(5)

6

months,

Subdivision

517.09(3)

(f)

as

of

provided in subsection N of Sec¬

Section

tion

which

previously re¬
quired that, in registering securi¬
ties

by
a

price

at

which

such

security

consumer

is

amount

of

commission

the

(5) A
serted

quire

that

the

maximum

include

(6)

be sold and to
statement
of

amount

(6)

of

amended

was

in

(6)

increase

holders

of

vided

that

such

shall

be

the

bond

that

shall

remain

in

bonds

shall

remain

of

date

be

to

cer¬

profit

sharing
plans.

or

to

B

of

is

not

available

exempting certain sales

conditions,

was

vide

fee

$2

a

of

to

or

a

controlling

amended

for

its

offers to buy

able

ceptance

or

registration of
(14)

Illinois
and

pending

of

15%

offering

of

price

maximum

amount

of

aggregate

commissions, remuneration
counts

which
for

account

on

distribution

registered

of

dis¬

or

underwriters

or

may

of

the

securities

by qualification under

the Act.

amended to increase the min¬
imum fee for registration of secu¬
rities by

qualification, description

notification

from

$25

to

$50

to increase the maximum fee
such registration from

and

for

$300

to $500.

(12)

Subsection B of Section 7

amended

to

to

$50.

increase the

for

for

7

ex¬

registration

shares from

Subsections

Section
crease

fee

E

and

amended

were

amended, effective Mar. 11, 1955,
by adding thereto a new subsection

advisors

apply to investment

of

$25
I

of

to

in¬

the fee for registration and
of registration of in¬

renewal

(o)

to exempt: "The sale and

signment

interests in an oil, gas or other
mineral lease, right or royalty by

the issuer
than

15

of process, was amended by
adding a new subsection B to
provide that the sale or delivery
of securities in
Illinois
(except
exempt securities, securities sold

price of such securities, with respect to any one such lease, right

ice

royalty, does not exceed $25,-

or

000."

-

,

IOWA

•

in exempt

transactions and regissecurities) by any person
by mail or otherwise shall con-

tered

of" thf Secretary

Derson

of State

attorney for such POTSon

as

whom

upon

maybeservedlawful

in any action or prosecuagainst such person arising

j0wa

amended,

°un°J,
(16)

c

of qeefion

p

Subsection E of Sect
to the escrow o

relatmg

was
amended to
securities in escrow

if
,

secu-

"ties,

provide

that

may

delivered^^
trust
or

in

company

bank

or

trust

I

company

be

Secretary

iu

ou s

State

of

substitution

authorize

e

us
b

the

public

securities

for

o

of

securities

escrowed.

(17)

Subsection H of Section 11
to
authorize
the

Secretary of State, if he shall find
that any person is engaging in
the business of selling securities
as

a

dealer

or

salesman or is act-

investment adviser without having complied with the reg-

ing

for

tion

fee

amoun£
noj-

tion with the intent

indebtedness.

of

Section

11

by the Secretary of State subject
to judicial review and subsection

amended

increase

the

L

and

for

renewal

of

each

$25.

Subsection

to

such

shares

F

from

of

$10

to

Section

7

amended to increase from $10

$25

the

examination

amendments

such

of

fee

registration

shares and subsection I

for

the

Secretary

of

to

provide that
State shall not

incur any official or personal lia-

bility by suspending or prohibiting any person from acting as a
dealer, salesman or <investment
(18)

Section 12 (violations)

amended by

.

adding thereto

was

a new

last

paragraph

°

.

Securities

effective

Act

July

6,

.

(1)

0£ saje

or

from

sejj

was

of

D

y

nition of

controlling

section

E

amended

of

f

eliminate

to

the

2

PHILADELPHIA

was

provi¬

sion

excluding unsolicited agency
transactions by registered dealers
from the definition of sale

but

exemption

new

a

licited

registered

dealers

Subsection
amended

to

Section

Subsection

amended

was

of

nition

subsection

I)

Section

of

amount

corporate and

.

in

offering of

amended

to

made

reflect

this

of

L

of

"investment

section

certain
was

D

our

HARTFORD

Member Midwest Stock

insurance

Section

UNION

3




and

COMMERCE

Exchange

BUILDING,

CLEVELAND 14

Sec¬

fund

com¬

eliminated from sub¬
of

several securities outlets.

BAXTER, WILLIAMS & CO

throughout

The exemption for securi¬

(2)
ties

through

to

a "facecontract" in¬

share."

panies

issues—affording widespread distribution
MINNEAPOLIS

-

amended to change the
of

new

originating and participating in the

K

Subsection

was

DETROIT

..

also active in

"investment contract"

were

definition

....

are

a

Subsection

certificate

Act.

tion 2

provided

,

CHICAGO

high grade

municipal issues.

in

was

2

an

change
the

defi¬

adviser"
"Federal

N.

amendments

and

a

,

We

2

definition of

a

stead of

of

(previously

was

subsection

provide

provide

Act"

Securities

new

Section

"investment
definition

the

and

to

of

I

COLUMBUS

the

dealer, a person who
only in "buying" secu¬

engages

of the country

Institutions and Dealers with close markets in

was

definition of

rities.

centers

always prepared to supply Investment Bankers, Financial

are

4.

2

from

exclude

Our nine offices located in financial

by

Section

of

of

G

FRANCISCO/

unso¬

inserted

was

N

Subsection

as

for

transactions

agency

SAN

sell,

or

wa*„.

New York

•

Philadelphia

•

Chicago

•

Columbus

•

Detroit

•

San Francisco

Minneapolis

the

definition

amended effect¬

authorize

the

Commission also to exempt "the
Continued on page 106

Sub¬

2

author-

hdiournment of

to

defi¬

person.

Section

'

.

alter adjournment or

legislature

was

Section

to change the

subsec-

.

CLEVELAND

Subsection

amended

was

of

by regulation the dissemination of
information

1955,

follows:

as

evade the

Securities Act,

ILLINOIS

amended

to

(d) 0f Section 451.102 of the

dealer is insolvent.

The Illinois

ex¬

lzinS the Commission to exempt

the

adviser.

of
was

amended

was

The

was

application pertains.
F
and
I
were

was

F of Section 4, for sales by regis¬
tered
dealers
in
the
secondary

J

E,

of

be sold

istration

Subsections

class

the
sold

a

jyfjc|1]gan

holders

be

jaw shall be guilty of a felony and

which

or

to

$1,000,000, and $500,

person guilty of other violations
of the law shall be guilty of a misrequirements, to prohibit demeanor.
or suspend such person
from enlwrrmriixr
gaging in such activities.
SubMILHIGAN
as an

tion

of

parity

$1,000,000.)
(3) Section 502.27, which previously made violations of the law
a
felony, was amended so that
only a person guilty of a viola-

amended to make such prohibition

additional

a

where

$300,

securities

wjiere. the amount to

section

registration
registration

was

over

fund shares from $100
$300 for the first class of shares

rights of the issuer" instead

"on

issue_

an

0f

to

for

was

registra^on 0f securities to $1,000,
(pr|or to amendment the maxi-

vestment

fee

state,

(2) Section 502.7, was amended

or

to

the

seCurities

with„ such

its

an

in

thereto-

distributed to

anc]

ceeded

amended

was

solcJ

amendecl to eliminate the exemp-

was

parable

issue'which1* has

f

mum

d

a

was

1955,

4,

to increase the maximum fee for

)

the State of Illinois acceptab
the

July

<« Subsection 11 of section
502'5' exempting, the sale by a
registered dealer of any security

process

tion

Act

Securities

effective

flows'

as

by

to

thereof, (1) to not more
or, in the alter-

persons,

to

persons

as-

undivided

fractional

of

native (2) if the aggregate selling

a

Subsection D of Section 5

was

or

to

INDIANA

serv-

registration

the initial public
of
securities
the

in

securities."

any

was

D

8

advisors.

(10) Subdivision (3) of Section
5(C) was amended to lower from
to

subsection

Section

investment

re¬

Law

device,

defraud

to

ties Act (exempt transactions) was

were

statement filed under the Federal
Securities Act."

20%

new

in

(15) Section 10, regarding

Securities

a

of

for

salesman.

a

sequent sections of the Act

ac¬

sale

violation

a

any

Section 5 of the Indiana Securi-

sub-

solicitations

artifice

or

ac-

and

L was in¬

scheme

increase

to

to provide
requirements for the registration

of
securities
which are the subject of a
pending
application for registration under
1953

A

inserted

thereof),

The

amended

was

pro¬

the

of the Act "to employ

Subdivision (6) of Section

$5 to $10 the filing fee
companying the application

of

subsection I to make it

to

except

(7) The exemption in subsection

subsection (9) to provide
registration of a dealer may
rejected or revoked if such

re-

such

securities

holders,

evidences of

$10 to
for

of

exempt sales

of sales to stockholders

of

fee

registration

the

amended

(but not the

investment fund

who
are
security
by reason of hold¬
ing transferable warrants, trans¬
ferable options or similar transfer¬

in

to

filing

"Offers for sale
of

amination

paid,

of

(13)

exempt:

was

"stock¬

from

shares.

of securi¬

to not more than 15
per¬
within any period of 12 con¬
secutive
months
under
certain

4,

own

newal

8(C)

of

its

increase

to

examination

from

issuer

an

the

a

or

holders solelv

issuance

in

on

Section

by

other remuneration is

issuer

with

new

that

amended

"security

through Dec. 31 of that year.
(8) Section 517.16, specifying
the
grounds upon which regis¬
tration of dealers may be rejected
or revoked, was amended to
add
a

in¬

was

or

or

an

year" from date of

from

securities

was

amended to provide

such

O

pursuant

sales

sion

effect

was

in¬

was

holders of evidences of
indebtedness" when no commis¬

be

to

"one

issuance,
effect

its

prescribing
given by
previously
pro¬
period for which

bond

subsection

Subsection

$500 to $1,000.
(7) Section 517.13,
which

K

Section 3 to exempt se¬

exempting

form

subsection N

issued

maximum fee for registration
of securities by qualification from

dealers,

subsection

new

$25

application to the Sec¬
retary of State.
(8) Subsection G of Section 4,

manual

(11)

tain employee
pension trusts

the

the

a

revised

was

Section 3 to

new

a

curities

Section

to

new

in

serted

to

commission

expenses.

Subsection

517.09

and

re¬

as

ex¬

employee-security-purchase plans

price at which the security

is proposed to

coop¬

exempt se¬
curities issued pursuant to certain

was amended to require that
statement
show the "maxi¬

mum"

information

of Section 4.

or

other form of remuneration to be

paid,

purposes,

put into

and

proposed to be sold and the maxi¬
mum

3, for stock of certain

erative associations organized

there
be
showing the

statement

ex¬

amended

emption for securities about which

clusively
for agricultural,
pro¬ receive
ducer, marketing, purchasing or sale or

qualification,

filed

re¬

additional

an

was

sons

tration of securities

as

manual,

vised to provide

previously provided in subsection

Section

of

to

about which

promissory notes and quired report.
drafts, bills of exchange and bank¬
(9) A new subsection
ers' acceptances.
The exemption serted in Section 4 to

securities

(d)

relating

recognized

a

negotiable

«•

517.09(3),

and

conditions from the exemption for

the

maximum

a

securities

person

was

elimi¬

to

in

ties by the issuer

of Section

amended

was

the
for

Fed¬

Auditor of Public Accounts.

Subdivision

nate

fee

the

of

specified information is available

approved

"capital stock."
(3)

of

mem¬

market

Savings and Loan Insurance
Corporation and to provide an
exemption for any credit union

to make the

exemption applicable to additional
"securities" instead of additional

517.08(2)

stockholder

or

a

105

(2629)

Hartford

106

The Commercial and Financial Chronicle

(2630)

Continued

from

subsection

105

page

and subsection

Report oi IBA State
Legislation Committee
making of offers and the solicita¬

pertaining to

tion of offers to

have

buy."

not

exempt
MINNESOTA

was

1955,

Minnesota

amended, effective
as follows:

Feb.

16,

ties for which

amended

sell"

or

from

define

to

"offer

The

to

"sale, sell,

sold."

or

was

a

no

offer

curities and

securities sold in

transactions)

shall

sold
se¬

rities

for

Act,

was

that "it

licensed

agents

to

with

amended I to

shall

be

in

statement

has

Federal

a

been

(1)
fees

registration
filed

Securities

securities

dealer shall sell any
unless
he
shall
have

securities until he shall have

any

to

examination

eliminate

faith

fees

agents

to

be

licensed

be¬

fore they may "offer for sale" any
securities
(these
licensing
re¬

quirements

are

construed

as

not

applicable with respect to brokers,
dealers or agents engaging only in
exempt transactions).

(4) The first paragraph of sec¬
tion 80.13, providing that no
per¬
son shall
publish, circulate or dis¬
tribute

any

advertising

material

a

under

provision

the

laws

(2)

that

the

the

of

sell,

(2),

notification

The

Nebraska

was

amended to impose

a

dition to

filing fee of $10 and a
registration fee), to increase the
a

minimum fee from $10 to $15, and
to eliminate a provision limiting
the

fee

charged
association to $5.
(3) Subsection
ed

to

increase

agent's

license

cooperative

any

Act

amended, effective three cal¬
months after adjournment

was

endar

of the legislature, by adding
sections providing that
(1)

not licensed

person

salesman

tion

who

in

within

Act shall

purchasers

for

the

or

in viola¬

be

liable

value

to

the

of

ceived thereon and

(2) any action
liability under this pro¬
be
brought within
three years after the date of the
to enforce

vision

must

transaction.
NEW MEXICO
A

complete new securities act
has been adopted in New Mexico
effective June 10, 1955.

The
Act

North

4, 1955,

CAROLINA

was

fee

offer

for

"sale

sale"

sell."

or

ment

from

$5

amend¬
for

to

ah

$7.50;

effective

April

separately

or

from

Prior to the amend¬

offer to sell

an

made

(2)

to

by defi¬

was

constitute

Subsection

78-4,

sale.

a

(5) of section
the issue of in¬

exempting
capital stock of

creased

sold

or

a corpora¬

or

exempt

by

an

' <»,

'ft

;

-

own

office

of

(b) by eliminating

requirement

a

in the fourth paragraph from the
thereof that any registered

end

dealer

selling securities registered
notification must give notice

by

to the

Secretary of State.

(8)

The last paragraph of sec¬
tion 78-8, relating to registration
securities

by
base

to

notification, was
the registration

fee

in

and

of

secu¬

the

preliminary
prospectus filed under the Federal
a

copy

Act shall have been filed with the

Secretary of State."
(6) Section 78-7, providing that
it

shall

tise

unlawful

be

circulate

adver¬

to

advertising

mat¬

securities
cept exempt securities and

(ex¬

ter

or

regarding

any

secu¬

rities sold in exempt transactions)
such securities shall have

the state, rather than on the
"par value" of such securities and

increase

to

base

the

fering

fix

amended

was

quirement

by ^striking the

re¬

for

approval by the
Secretary of State and by adding
a provision that "the provisions of
this section shall not apply to any
securities for which
shall

statement

the

if

1933

registration

have

Federal
a

a

been

filed

Securities

Act

of the prelimi¬
under the

copy

filed

prospectus

Federal Act shall have been filed
with the

Secretary of State.

(7)

Section

registration
securities

78-8,

of

subsection

notification
the

classes

of

(4) ^authorizing
the
securities
registered

Federal

Securities

Act

1933

(except*,securities regis¬
tered by person^re'gistered under
the

Federal

Investment

Secretary

maximum

Company

Columbus

other

"par

amounts

State

cation

for

to

additional

of securities

shall

require

be

regis¬

appli¬
registration
no

previously registered
an additional filing

fee.

(9)
Section 78-19, relating to
registration of dealers and sales¬
by striking out
paragraph thereof, there¬
by eliminating a requirement that
"every registered dealer who in¬
men, was amended

the last

tends to offer any

security of any
to be regis¬
notify the Secretary
State in writing of his inten¬
registered

tered,

shall

of

tion

or

to do."

so

|

NORTH

DAKOTA

The North Dakota Law requir¬
ing the registration of oil and gas

brokers, was 'amended, effective
March 9, 1955, as follows:
Section

(1)
gas

brokers,

1, defining oil and
amended to de-

was

of

Bonds

transferable

or

commission

paid

or

given
purchase

to

securities

com¬

for

an

any

or

not

purchased
such security-holder."
Subsection

(3)

Toledo

exempting

of

(7)

Braun, Bosworth & Co.

of

Incorporated

by

section

subscriptions

Municipal Bonds
Toledo

-

New York

-

Detroit

-

Chicago

«j

-

Cleveland

-

Cincinnati

or

sales of shares of the capital stock
in domestic corporations when no

is incurred and

expense

mission,

compensation

neration

is

paid

or

no

or

com¬

remu¬

given

for

or

in connection with such sales, was
amended by inserting a condition

that
to

Mcdonald & company
*

"such

more

shares

than

25

are

offered

not

in

persons

state."

this

CORPORATION AND MUNICIPAL SECURITIES

Underwriters

Dealers

Distributors
V

.

...

a new subsection
(12) ex¬
empting sales of securities by reg¬
istered dealers in the secondary
market under specified conditions.

;

•.

>

(4) Section 78-4 (exempt trans¬
actions) was amended by adding
thereto

UNDERWRITERS AND DEALERS IN

Municipal and Corporation Securities

(5) Section 78-6, forbidding the
of any securities except ex¬
empt securities or securities sold
sale

New

York

Stock

Exchange

Midwest Stock Exchange
American

Stock

Exchange

(Associate)

in exempt transactions unless such

securities

tered,

shall

was

have

amended

been
to

regis¬

provide

that

"it shall be permissible for
registered dealers and salesmen to

UNION COMMERCE BUILDING

offer

securities

for

sale

in

The First Cleveland
Member

this

Midwest

Corporation

Stock

Exchange

state prior to registration of those

CLEVELAND 14, OHIO




may

minimum

and

permitted

provision

a

of

State and Municipal

or

commission

no

than

78-4,

MEMBERS

"of¬

on

than

tered under that act but

by

notification,
was
amended by inserting immediate¬
ly following subsection (3) a new

of

the

issue,

authorizing

certain

rather

in the state and to add

been registered and such advertis¬
ap¬

registration fee

price"

value" of the securities to be sold

that

ing matter has been filed and

regis¬

lating to registration of securities
by qualification, was amended to

unless

proved by the Secretary of State,

maximum

the

tration fee from $150 to $200. The
last paragraph of section 78-9, re¬

other

if

undertaking
Cleveland 14, Ohio

the
pro¬

on
the
aggregate "offering
price" of the securities to be sold

security-holders (in¬

holders

pensation

Co.)
•

istration statement for those

the

Fed¬

1933, the cir¬

spectus under the Federal Act and

amended

reg¬

the

under

Secretary shall be the final

of

a

in

secu¬

paid or given for
soliciting or effecting the sale or
exchange
to
security - holders

EXCHANGE

PR 1-6300

filed

end

of

secu¬

such

•

this

cular

the

case

remuneration is

PRESCOTT, SHEPARD & CO., INC.

Canton

in

registered

securities under this Act if

amended

was

"the sale

rities)

'

Shaker Square

sale

from

the

eral Securities Act of

state prior to registration of those

exchange
issuer of its securities to or

with its

PRESCOTT & CO.

900 National City Bank Bldg.

for

in

remunera¬

rights with respect to such

&

securities

offer

by it en¬
stockholders

own

distribution,

to

cluding

of Prescott

shall

was

that

is

sale

SECURITIES

(Affiliate

have been regis¬
amended to provide
that "it shall be permissible for
registered dealers and salesmen to
securities

tered,

paragraph

thereof

paid or given directly or
indirectly in connection with such

OF'.

1

secondary

(5) Section 78-6, forbidding the
of any securities except ex¬
empt securities or securities sold
in exempt transactions unless such

distributed

or

commission

no

tion

CORPORATE & MUNICIPAL

STOCK

the

sale

under

(4)
the

in

dealers

market under specified conditions.

nary

Securities

amended to define "offer to sell

nition

UNDERWRITERS & DISTRIBUTORS

YORK

rities

follows:

as

tirely among its

NEW

thereto a new subsection (12) ex¬
empting sales of securities by reg¬

of

Subsection (c) of section
defining "sale or sell," was

(1)
78-2

when

'

sixth

under

Carolina

amended

was

tion

MEMBERS

(4) Section 78-4 (exempt trans¬
actions) was amended by adding

any

Nebraska

transactions

the

of

new

broker

as a

consideration paid less the amount
of any income
or
recovery
re¬

examination fee of $5 (in ad¬

new

Act of 1940). This section was also
amended (a) by providing in the

the Federal Securities Act of 1933

Securities

state

intention

Secretary of State."

Thursday, December 15,1955

.

rities shall have been filed under

providing

of

a

NEBRASKA

NORTH

Subsection
on

year.

nished to anyone requesting them.

shall be $5.

licensed, were amended to
provide that brokers, dealers and
also

a

entire fee charged any cooperative
association
organized
in
good

been

must

fol¬

as

fee of $10
(in
filing fee of $25 and
a registration
fee), to increase the
minimum fee from $25 to $35, and

or

been licensed, and section
80.13,
requiring that no agent shall sell

further amend¬

1, 1955,

(1), providing
applications for registra¬
amended to impose a

addition to

(3) Section 80.12, providing that
broker

Minnesota

was

new

of

1933."

no

was

July

the

Subsection

on

tion,

under

Act

of

Minnesota

provision that
copies of the report shall be fur¬

engages

80.20

lows:

secu¬

which

issuer."

effective

ed

Min¬

for

sale

the

the

1 in each even
The amendment

eliminated

or

Securities Act

pro¬

permissible

dealers, brokers and

offer for

securities

all

Section

Secu¬

prior to registration

nesota

rities

the

Minnesota

numbered

new

to its patrons
substantially all of
the consideration is comprised of
patronage refunds accruing to the
purchaser on business transacted

curities shall have been registered

the

own

when

Oct.

Section
sub¬

to
a

of

report bi-annually on

a

before

or

(12) exempting "The sale
cooperative association of

any

its

ex¬

be

Minnesota unless such

pursuant to
vide

by adding
(exempt sales)

file

must

Act shall have been filed with the

istered

80.23

Act, which previously
required the Commissioner an¬
nually to file with the Governor a
report on or before Nov. 1, was
amended effective April 26, 1955
to provide that the Commissioner

also

Act

Securities

1955,

by

(2) Section 80.07, providing that
securities (except exempt se¬

within

Minnesota

section

sale.

empt

the

also amended effective March

80.06

sell

to

under

24,

by definition made to consti¬

tute

an

filed

was

Prior to

amendment

apply to securi¬

registration state¬

a

been

Federal Securities Act of 1933."

"offer for sale" separately

the

has

ment

application

investment adviser's license

an

Section

registered (except
securities and securities

not

amended

was
on

Securities

been

"shall

(10)

from $50 to $75.

amended to provide that this pro¬

vision

(1) Subdivision (3) of section
80.01, defining "sell, sale, or sold,"
was

for

sold in exempt transactions), was

Act

Securities

to

application for

to increase the fee

securities which

any

amended

was
on

dealer's license from $75 to $100;

a

The

(5)

increase the fee

.

.

securities under this Act if a reg¬
istration statement for those secu¬
rities shall have been filed under
the Federal Securities Act of 1933
and

a

copy

of

the

preliminary

prospectus filed under the Federal

.
„

National City E. 6th Building
CLEVELAND

Telephone PR 1-1571

14

Teletype CV 443

-

CV 444

Volume

182

Number 5490

.

.

.

The Commercial and Financial Chronicle

107

(2631)
fine also

mineral brokers

and

to

1310.01

include persons dealing in proper¬
ties
containing or presumed to
contain

uranium

of

er

able material.

Section 2,

broke

gas

amended

to

requiring oil
to

r s

register,

Revised

Code

is

securities

Act of

or

1933,'

the 'Se¬

as

amended,

as

the

in

the

of

process

kers also to register, to provide that
registration
shall
automatically

registration, if registration is1

expire

sections

unless

the

June

on

30

of

each

quired

year

renewed, and to authorize

Commissioner

cancel the

to

revoke

registration of

and

registration

6

amended

was

mineral

broker

to

Commissioner the
dresses

certify

to

business,

and

for

to

section

provide

renewal

of

8

that

registration

of

as

no

Ohio

follows:

-

v

The

Act

Oct.

purchase

of

the

security,

of

the

term

confirma¬

transaction

itemizes

his

to

which

commission.

solicitation

shall

used

as

in

solici¬

mean

tation of the order for the specific

.

security purchased, and shall not

(1) Subdivision (D) (5) of sec¬
1707.03, providing as one of
alternative

emption
the
a

conditions

under

Securities

that

to

section

Division

has

include

ex¬

(3)

that

tion

made

of

"finding" is in full force.
(2) Section 1707.03
ed

by

tions

adding three
to

exempt

new

subsec¬

enumerated

"(R)

A sale of

check,

for

ment

the

by

money

a

a

or

qualified

person

of

sections

1115.16

divisions

of

(R)

to

such

engaging

described

of

of

"(P)

in

the

1707.03

exclusion

in
new

to
to

transactions

section

Section
curities

or

1707.03

set

forth

1707.99 of the Ohio Se¬

Act

was

amended

securities

tration

1707.45,- inclusive,
Code, and shall

of
be

one

nor

than five years, or fined not
more than $5,000, or both."

for

which

statement

has

rities sold in

regis¬

a

been

filed

the Federal Securities Act

the

der the Federal

Section
licensing

amended
person

to

make

engaging

transactions
obtain

a

1933.

is

license

it

clear

only
not

as

in

that

a

exempt

required

securities

to

OREGON

The Oregon

effective

follows:

as

(1)

Securities Act
;

■

*

April 4,

was

1955,

25

subscribe

(b)

to

10

vide

(7)

of

section

stock

subsequent
capital stock

to

corporation

not

amended

any

been

to

pro¬

that this provision shall not

apply to exempt securities,

and

exempt

scriptions

was

have

required

to

be

regis¬

lished,

circulated

pub¬

distributed

or

until such advertising matter shall
have been submitted to the com¬
mission

and

amended
that

this

apply to

approved

by

adding

any

provision
not

shall

securities for which

Continued

secu-

by it, was
a

requirement

on

page

108

actually

persons

purchase

or

which

of

second

where not more
solicited and not

persons

than

more

securities

registered,

y

Subsection

partnership

a

(5) The first paragraph of sec¬
tion
55.1918, providing that no
person shall publish or distribute

advertising matter regarding

un¬

Act

tered by notification shall be

broker.

a

The

Securities

paragraph of
section 55.1918, requiring that no
advertising matter containing or
constituting an offer to sell any

55.1912, requiring
of
brokers,
was

.

registra¬

a

tion statement has been filed

of 1933."

(4)

exempt transactions

securities for which

or

more

by

its

DEALERS

sub¬
of

AND

UNDERWRITERS

a

IN

shareholders

where the number of shareholders
does not exceed 10.

CORPORATE AND MUNICIPAL BONDS,
*■

(2) Subsection (11) of section
59.110, exempting stock or mem¬
bership certificates issued by an
agricultural cooperative market¬
ing, purchasing or irrigation asso¬

ciation,
inate

"

I

COMMON

'

PREFERRED

AND

STOCKS

amended (a) to elim¬
provision that the fee or

was

a

charge for such membership shall
note exceed $1,000, and that one
shall not hold

person

CURTISS, HOUSE & CO.

than

more

membership and (b) to add a
provision that the exemption shall
one

not apply to any

Established 1914

association which

Members:

in the

engages

essing

production, proc¬
marketing
of
forest

or

The Oregon

York

New York

Securities Act

was

further

amended,
effective
90
days after adjournment of the leg¬
islature, as follows:

effec-

New

American

products.

subdivision

above).

engage in such business under the

provisions

in

extends

persons

order,
other instru¬

money

transmission

sections

registration

(R), inclusive" of section
(this

(A)

registration requirement
engaging in transactions

persons

following

sec¬

amended to exclude

were

from the

(both

the

or

kind."

any

1707.44

to

amend¬

transactions:

travelers'

section

was

the

of

Subdivision (B)(1) of
1707.14, and subdivision

relating
dealers)

clarified to provide that such

solicitations

general

advertisements

finding under section 1707.03 (N),

was

Revised

imprisoned not less than

the

delivers

written

this paragraph

tion

the

violation of sections

a

to

amended,

li¬

a

for

such

security, and

was

1955,

13,

the

or

interest in the distribution

clearly

Securities

effective

by

orders

solicitation

no

purchaser

tion

The

to

such

the

shall

OHIO
amended

guilty of

1707.01

than

made

has

fee

be $10.
I

of

Whoever

sale

description

execution

dealer

(A)

59.110 was amended (a) to ex¬
empt subscriptions to interests in

order

was

the

such

no

1707.99.

commits any act described in sec¬
tion 1707.44 of the Revised Code
is

Act

under

"Sec.

has

ad¬

of any regular

amended

1955 by adding the
language to read as

of any security is ex¬
empt, provided such dealer acts
only as agent for the purchaser,

employees
agents employed by him in the

or

ex¬

purchase

the

and

names

of

1707.45, inclu¬

that

by

The

censed

or

to

provisions

to

qualification of such securities.

"(T)
Section

6,

shall be consummated prior to the

celled.

require any registered oil, gas

the

1707.01

empt, provided

whenever the bond of the broker
becomes ineffective
or
is
can¬

(3)

under

re¬

sive, of the Revised Code is

broker

a

Oct.

follows:

the

under

Congress known
are

in

are

of registration

which

and

licensed deal¬

a

which

curities Act of

was

require mineral bro¬

tive

underlined

process

(2)

the

"(S) A sale by

other fission¬

or

of

exempt.

Stock
Stock

Exchange,
Exchange

Correspondent: Clark, Dodge & Co.

Union Commerce Bldg.

Cleveland

Midwest Stock Exchange

(Associate)

MA 1-7071

"

14, Ohio

make technical changes

(1) To

in subsection

(3) of section 59.120,
an in¬
in capital stock under spec¬

exempting subscriptions to
crease

ified

conditions,

in

and

subsec¬

tion (5) exempting any transfer or

SECURITY

DEALERS

exchange of securities pursuant to
consolidation

a

or

TRADERS AND DISTRIBUTORS

merger.

(2) Section 59.200, authorizing
a special registration for securities
in the hands of the public or is¬
sued by stock split-up or stockdividend, was amended to elim¬
inate
a
requirement that
"the
entire issue" be eligible.
.

SPECIALIZED—PROMPT
CLEARINGS
We clear for dealers in New York

IN

Cleveland and Ohio Securities

(3) Section 59.210

was amended
require a consent to service of
process only upon any application
for registration by notification or
by qualification by an issuer not

to

-

Pittsburgh

Address

Chicago

-

Loans

and

-

Cleveland

Securities De¬

domiciled

in

amendment
UQ

V

y Ml

partment.

Of

Teletype: CV 240.

state

(prior

consent

was

MJSSELL&

to
re¬

quired, if the issuer was not do¬
miciled in the state, upon any
application for registration by no¬
tification

OHIO'S LARGEST BANK

the
a

by

issuer

an

—MEMBERS—

NEW

and

MIDWEST

application for registration by
qualification whether by the is¬

Assets Over One Billion Dollars

or

by

a

thereof,

SOUTH

UNION

The

YEAR

the

14.

OHIO

CHERRY

INVESTMENT SECURITIES

•

MUNICIPAL AND CORPORATE

amendments

to

(1)

fULTON, REID & CO.

•

July

effective

adopted

"offer to

to sell

Specialty

of

(3)

sell"

"offer

or

from

"sale"

was

w

1,

A

section

constitute

a

Of

i

sale"

for

"sell."

or

/c&co.\
A tP

offer

an

definition
as

/




m

so

S

persons

so

Fulton, Reid & Co.

acting

under

subsection

Bldg.

CLEVELAND

(3)

(1)

55.1906, requiring
registration of securities (except
exempt securities and securities
sold in exempt transactions) be¬
fore they are sold within South
Dakota, was amended to provide
that "it shall be permissible for
registered brokers and agents to
for

prior

to

sale

in

South

registration

nt

so

of

tt

'■J

Section

offer

-i

Vt

section 55.1904.
INC.

EXCHANGE

Union Commerce

z
o

representatives in transactions

exempt

Co.,

includes

C

k

(5) of section
"broker," was

amended to make it clear that the

Direct Wire—

-i

so

sale.

Subsection
55.1902, defining

Joseph McManus & Co., N. Y.

>

o

by definition made to

(2)

6-

a

Z

Subsection

Prior to the amendment

STOCK

FULTON, REID & CO.

O

55.1902, defining "sale,
sell or
sold," was amended to define

SECURITIES

MIDWEST

565

ae

Act

Securities

Dakota

separately

MEMBERS

CV

1-5050

repealed.

was

1955:

Wm. J. Mericka

—

O
were

Ohio Securities Our

(Assoc.)
TELETYPE

BLDG.

DAKOTA

following

South

COMMERCE

CLEVELAND

•

«■

EXCHANGE
EXCHANGE

AMERICAN STOCK EXCHANGE

registered dealer).

(4) Section 59.240, requiring the
filing of an annual report regard¬
ing each registered security and
the issuer

26th

STOCK

any

suer

BEGINNING OUR

STOCK

YORK

upon

Dakota

under

this

O
»/>
"

2

1186

TELETYPES

UNION COMMERCE BLDG.
CLEVELAND

14, OHIO

Telephone: CHerry 1-1920

u>

Corporate Dept. CV83

Municipal Dept. CV613

CO

C
-«

o

O
«•

Q*

FULTON, REID & CO.

*

INVESTMENT SECURITIES

•

fULTON, REID & CO.

108

(2632)

The Commercial and Financial Chronicle

Continued from page 107

transactions under this section."
tion."
The

Report of IBA State
Legislation Committee

Wisconsin

further

was

Aug. 12, 1955
(1)

Securities

amended

Act

effective

follows:

as

Section

cally

189.02,

containing

established

sion,

authority,

similar

registration statement shall have

been

filed

curities

the

under

Act of

the

1933

preliminary

matter

if

a

amended effective

prospectus

for

such
securities
filed
under
the
Federal Act shall have been filed
with the commission.

of

the

Wisconsin

has

been

adopted

effective July

'V

securities

new

in

act

Tennessee

met,

4, 1955 by changing

adopted

was

new

in

Texas

act

intervened

effective

A separate act reg¬
ulating the sale of insurance secu¬
and

dealers

and

selling such securities
effective

of

adopted

Sept. 6,

of

Insurance

same
an

by, for or
issuer" to permit

ment

sioners.

and

evidence of

distribution"

on

of

Securities Act
tive

was

an

investment

of
beneficial interests,
not
exempt under sub. (l)(b), for the
purpose
of investing and rein¬

vesting such proceeds in securi¬
ties, if the total membership at

ex¬

any

one

time is limited to 25, the

monthly payments by each

Wisconsin

ber

amended effec¬

do

vided

matter

excepted by subdivision
(3) of section 189.14, as amended)
relating to securities sould under

exceed

not

$25.,

mem¬

and

all

a

thereof is filed with

copy

minimum
tion

whether

or

not

or

amendment

public interest

advertising matter

lating to securities sold under
189.06

or

189.07

was

not

re¬

such

securities

tion of
sec¬

"(b)

re¬

vised

quired by the Act to be filed with
the

department,

advertising

and

of

of

to

or

registration

under

189.13

for

the

to

appropriate
or

in

The
such

the

from

$10.

the

has
club

that

the proposed sale of the securities
issued
by it constitute exempt

fiduciaries

and

the

Georgia

legal investment law for insurance
companies was amended, effective
March

3,

1955,

to

authorize

vestment under subdivision
bonds and securities issued

in¬

(a) in
by any

to

$25.

maximum

the

department

return

of

to

filing fee

may

order

filing fee

a

when

security is permitted to be with¬

drawn; but the department may
charge the expense reasonably at¬
tributable

its

to

amination

preliminary

against

the

or

authority,
corporate
body

in common stocks of
solvent rail¬

further amended by
adding a
subdivision
(7) to provide

to

that

for

1957, if

roads, street railways, and other
utility corporations and industrial
corporations which are "regularly
traded
are

de¬

of

the

and

which

on

readily available"

lished

stock

has

suer

three

has

had

quotations
estab¬

on an

exchange (if the is¬

paid

for

dividends

consecutive

current

thereon

and

years

earnings in each

of such three consecutive
years to

fully
der

ex¬

cost

for

investment

vision
such

the

securities

mated

of

within

the

pay

or

investment

other

evidences

issued, assumed
struction and
amount

total

assets

annual

Subsection
the

to

State

Legal

This appendix contains
of

of

some

1955

vestment

tne

in¬

adopted
June

of

aries

in¬
was

in

Arkansas, effective
1955, authorizing fiduci¬

9,

within

standards

the

"to

prudent

acquire

and

man

retain

kind of property, real, per¬
or mixed, and every kind

every

sonal,

of

law

July 14, 1955 to

no

shares of

was

of

by the last

legal
savings banks

Aug.
the
for

20,

not

investment
revised

was

1955.

provisions

securities

While

previously

investment

are

porate

obligations,
or

terests in

previously eligible for invest¬

ment have been made

eligible.

MASSACHUSETTS
The Massachusetts legal invest¬
law for savings banks was

ment

revised effective Sept.

Section 555.201

legal

investment

of the

law

ject to the prudent

certain requirements are met) ex¬
ceeds 50% of the amount
by which

include

aggregate

voluntary

of

capital

reserves

and

surplus
all

re¬

Michigan

for

fiduci¬

aries, authorizing investment in
specified types of securities sub¬

(authorizing investment in securi¬
ties registered onaregistered
national
securities
exchange
if

the

12, 1955.

MICHIGAN

rule,

man

OF

securities

of

closed-end

MUNICIPAL BONDS

vestment

funds, and

open-end

or

management

company

type in¬
investment

or

of

investments

companies which

with

the

Federal

in

securities

are

registered

Securities

Seasongood (r Mayer
INVESTMENT

trust registered under the Federal
Investment Company Act of 1940,=
as

BOND

trust

any

amended."

DEPARTMENT

SECURITIES

★

CONNECTICUT

Established 1887

Section 5815 of the Connecticut

Provident

Savings Bank & Trust Company

CINCINNATI 2, OHIO

PHONE CHERRY 1-6111

legal

investment

banks

law

of

14

assets

thereto

a

★

new

authorizing investment
in

stock

corporation
ment

savings

amended effective Oct.

was

1, 1955 by adding
section

for

shares

or

which

is

an

of

204

Ingalls Bldg.

CINCINNATI

2, OHIO

a

invest¬

registered under
the Federal Investment
Company

Act

company

of

stock

MUNICIPAL BONDS

shares

★

★

or

state banks and trust

invest their assets only

CINCINNATI




Terminal

(1), OHIO

investment, (c) lim¬

itations

are imposed on the amount
of stock of any
corporation which

POHL & CO., inc.
Dixie

com¬

having
savings
depart¬
ments, (b) such investment com¬

may

414

all the
invest¬

panies

in prescribed
★

(a)

such

company are or are to be
owned by savings banks of this

pany may
★

of

ment

state

CINCINNATI BANK STOCKS

1940, provided

and

Bldg.
MAin 1-6515

be held

company

imposed
in such

and
on

by such investment
(d) limitations are

investment companies.

conditions
cured

by

'

Walter, Woody & Heimerdinger
MUNICIPAL BONDS
403

DIXIE TERMINAL

CINCINNATI 2

savings banks, authorizing

investment

.

the total investments

Subsection 13 of section 5815 of
the Connecticut legal investment
law for

I

subject
in

tne

to

revenue

revenues

specified
bonds
of

a

se¬

lo¬

was

amended effective Oct. 14, 1955 to

stocks, pre¬
shares or in¬

common,
common

no

securities

some

specifically includ¬
ing, but not by way of limitation,
bonds, debentures, and other cor¬
ferred

i

the

are

of investment

DEALERS and DISTRIBUTORS

an

its

common

such shares together with common
stock
held
under
subsection
3

rule

man

shown

as

2%

exceed

Maine

effective

stock may be acquired under to at
subsection
if
the
aggregate
of

banking industry.

prudent

125

amended effective

ARKANSAS
The

section

investment

authorized

provide that

"

to

guaranteed by

or

longer eligible and

ties not otherwise

amendments to state legal in¬
vestment laws which are of

particular interest

of

or

MAINE

The

insurance companies author¬
izing investment of an amount not
exceeding 5% of assets in securi¬

sum¬

the

8

legal

"bonds

indebtedness

for

Investment Laws—1955

maries

Illinois

in
of

report."

some

APPENDIX B

law
was

Development, in

to

not

eligible
ILLINOIS

such

the International Bank for Recon¬

same,

fund is made.

of

(3) of section 511.8 author¬

izing

of

curities.

offering

amended, effective July 4, 1955,
(1) by adding a paragraph to sub¬
section

the dividends); and un¬
(1) in securities
guaranteed by the United

se¬

consum¬

after date

IOWA

many

deficit may be charged
against the filing fee before a re¬

be

year

Iowa legal investment
for life insurance companies

body insuring or guaranteeing

the

must

The

posit

expense

eligible

that subdi¬

admission of

or

one

public

examination exceeds the cost de¬

tne

be

issue.

subdivision

issued

to

under

listing

Exchanges

requirement

a

securities

law for

if

or

*

amerided, ef¬

was

eliminate

States Veterans Administration or
other United States Government

posit,

the

ad¬

of

and

under

vestment for fiduciaries

department

56-224

section

filing fee for registra¬

the application for registration of

for the protec¬

investment

Section

by the United States Gov¬
ernment, or the government of
any state; under subdivision
(j)

the

is

investors; and

INDIANA

ican and Midwest Stock

act

apply

registration under that section
$140. to $160. Section 189.29

new

of

189.13

s.

pro¬

GEORGIA

and

increase

to

securities

increase

"(a) Such investment club shall

necessary

tions

amended

Amendments

mailed to the department not later
than the date of use. Prior to this

1,

specified fective March 11, 1955, to reflect
changes in the names of the Amer¬

of

other

that:

file with the department such in¬
(exempt securities), formation, statements, copies of
section
189.07
(exempt transac¬ papers and instruments as the de¬
tions) or section 189.08 shall be partment may require in order to
issued, circulated or publisned un¬ be in a position to determine

Jan.

Subdivision

created

section 189.06

less

advisers

sections

license;

members continue to retain equal
interests in the funds, and pro¬

Aug. 4, 1955, to require that
advertising
matter
(except

no

to

club

satisfactory

of the

(21)

of

purpose

more

unit

a

"(21) The sales by

WISCONSIN
189.14

subsection

new

the

adviser's

se¬

exempt:

changes.
Section

other

also

that

a

for

viding one or
public services.

subdivision,

was

to

issu¬

the specified

of the

corporation
or
"established by the

body

political

Securities Act, providing exempt
transactions, v/as amended effec¬
tive Aug. 6, 1955 by adding there¬

securities "fully listed, or ap¬
proved for listing upon notice of

notice

189.07

effective

authority,

similar

agents from $3. to $5.; to provide
a
fee of $25. for an investment

on

Wisconsin

any

ance

investment

may

Section

effective March 18,1955, to exempt

upon

of

from

the Vermont Securities Act, ex¬
empting securities "appearing in
any list of securities dealt in" on
specified exchanges, was amended,

or

requiring

(3) Section 189.29, relating to
fees, was amended to increase the
filing
fee
for
registration
of

issuer.

issuance

189.03,

investment advisers.

VERMONT
Subsection VI of section 8885 of

become

approved by the vote of the peo¬
ple at the next general election.

for

were

approve" following a
public offering of stock of the
same class by or on behalf of the

Commis¬

Banking Act of 1955
adopted May 11, 1955 and will

was

thereof"

Section

various

recent

class

by
board, commis¬

a

was

curities to become eligible "within
such shorter period as the depart¬

1955, to be ad¬
ministered separately by the Texas
Board

the

behalf of

salesmen

was

most

of

original surplus require¬

(f) of section 14 of
the Indiana legal investment law

tion

requirement

a

the

authorization to invest¬

and

The Illinois

was

1, 1955 to

ment in revenue bonds secured
revenues

tal

ments.

United States, a state of the United
States or a political subdivision

registration of dealers and agents,
amended to require registra¬

Act,
com¬

initial public offering of any stock

Sept. 1, 1955.

rities

since

Oct.

the

more

sion,

and

(2)

that "not less than six months has

securities

by

by renumbering former
subdivisions (9) and (10) as sub¬
divisions (11) and (12).

amended effective Aug.

was

(9),

for

for fluctuations in value of

serves

securities exceeds minimum capi¬

(10)

and preferred stock by notifi¬
cation
if certain
conditions
are

1, 1955.

complete

of

subdivision

the

or

a definition of "licensed
investment adviser" as subdivision

mon

TEXAS
A

Securities

registration

the

inserting

Subdivision (d) of section 189.08

authorizing
complete

sold

was

189.08.

TENNESSEE
A

securities

to

definitions, was amended by in¬
serting a definition of "investment

excepted
from
the
filing requirement of
this section but was subject to a
filing requirement under section

of

copy

relating

under section 189.08

Federal Se¬

established

of providing one or
specified public services,

adviser"
a

commis¬

corporation

purpose

limit

as

body

board,

Thursday, December 15,1955

...

and

Volume

Number

182

5490

The Commercial and Financial Chronicle

...

Exchange Commission under any
of the acts
enforced by it and
whose principal and primary ac¬

ments,

tivities

approximate value of the account

investments in
rities of other companies.
are

secu¬

of

the

Minnesota

1955, as follows: (1)
5, authorizing invest¬

ment

iq stocks and bonds meeting
specified
requirements, was
amended

that not
assets
stock

to

remove

more

be

to

limitation

a

than 5% of admitted

invested

in

be

change

invested
a

a

limi¬

than 10%

more

in

all

of

stocks);

limitation that

shall not invest in

pany

common

(this leaves in effect

tation that not
assets

in

a com¬

10% of the aggregate

or

par

stated value of preferred and com¬
and

to

such

of

stock

the

extend

investment

corporation;

authority

evidences

in

debtedness

United

of

The

for

of

in¬

States

evidences

of

payable in United
of corporations or¬

States dollars

ganized under the laws of Canada

province thereof.

law

for fiduci¬

aries

was amended effective Sept.
18, 1955 as follows: (1) In subsec¬
tion (10), authorizing investment
in common stock meeting specified

requirements,
which

moved

in

ment

of

(2)

ing

limitation
restricted
stock

common

the total

In

a

value

of the

subsection

investment

was re¬

invest¬
to

20%

account.

(11), authoriz¬

in

securities

management type investment

of

com¬

section

(4)

ment in

obligations for which the

faith

to

and

authorize

credit

of

invest¬

New

York

are
pledged (this
previously authorized

in¬

secured

or

by

pledge

of

ter districts and

bond

Hampshire

panies.
NEW JERSEY

(1) Section 17:24-1 of the New
for

law

insurance companies was amended

1955

2%

of

the

total

any

one

admitted

insurance company

in

(2) Section 3 of the Act author¬
izing New Jersey savings banks to
invest in preferred or common
was

prescribed require¬
amended effective Sept.

15, 1955 to raise the permitted to¬
tal

as

such investments from 30%

to 40%

bonds

and

deben¬

(1)
York

savings banks

29,

1955:

(1)

was

By

amended April

adding to sub¬
authorizing

section (1) a provision

investment in obligations for
annual contributions

which

1955

authorize

to

investment

interest-bearing securities of
state

the

of

similar
ment

United States

in

not

are

to

be

paid pursuant to contract by the
or

any

(H),

the Ohio

le¬

1955:

(1)

Sub¬

authorizing

the

in

course

or
surplus
money
capital stock, was amended
to permit investment in securities
or property not otherwise author¬
ized up to 5% of total admitted
assets.
(2) A
requirement was

insurance company

no

shall at any time have invested a
sum

exceeding

5%

of

assets in securities of

corporation

admitted

particular

a

(with certain

or

ex¬

ceptions) invest in more than 25%
of
the
outstanding securities of
any one corporation,
(c) Changes
were

made

in

the

classes

of

mu¬

A

nicipal bonds eligible for invest¬

invest¬

ment, including new provisions
authorizing investment in revenue

was

pre¬

bonds

that

ments.

authorization

tional

limitations

contains

time within the preceding ten

any

years.

for

York

investment

legal

savings

banks

was

amended effective March 29, 1955

by adding

subdivision (d)

new

a

authorize

in

investment

prop¬

issued
pursuant to provisions of Title 1
of the National Housing Act of
erty

improvement

1950

if

received

has

bank

the

notes

in

contract of

a

require¬

prudent

Subsection

law

for

(3)

other

than

of

Section

17.2

companies,

insurance
life

companies

insurance

com¬

panies to invest (an amount equal
to capital and surplus if a stock
company and, if a company other
than stock, an amount equal to its

surplus

all

over

liabilities)

corporate securities meeting
ified

requirements,

in

spec¬

amended

was

insurance from the Federal Hous¬

effective

(1)

to

ing Commissioner.
(4) Sections 21(b), 26(g), 26(h)

authorize such investment by

man

^investment

was

or mixed, and every kind
investment, specifically includ¬
ing but not by way of limitation

of

bonds, debentures and other

1,

1955

common."

or

Section 31.1401 of the South Da¬
kota legal

investment law for in¬

companies

surance

effective July

was

1, 1955,

amended,
follows:

as

(1) Provisions of the law
made

"all

the

law

Prior

did

not

amendment

to

apply to capital

and surplus.

(2) A
added

subdivision (17)

new

authorize

to

first mortgage

corporate

SWENEY

C A RTW RIGHT

&,

CO.

INVESTMENT SECURITIES

certain

in

of

classes

income
bonds,
certificates
or
preferred stock issued or guaran¬
equipment
teed

by

finance

notes,
trust

public

railroad,
or

meeting specified requirements.

(3) A

subdivision (18) was

new

to

authorize
of

investment in

any

open-end

trust

management

type

Federal Investment Company Act
of

1940, provided that not more
2% of the assets of any in¬

than

surance

company may

in such

be invested

securities.

(4) A
added

new

subdivision (19) was
any insurance

authorizing

company

to invest an amount not
aggregate 5% of

tor exceed in the

its

admitted

exclusive of

assets,

Continued

the

used

amount

to

Joseph, Mellen

on

page

the

measure

of the New York legal

Columbus, Ohio

for

law

savings

amended

effective

by adding
to

was

April 29, 1955
in

casualty

any

Commerce

Building

New

York

Office

—

25

Broad

Si.

com¬

com¬

investment

of

stock

mon

Union

Cleveland, Ohio

subdivision (d)

new

a

authorize

1170

investment

banks

Miller, Inc.

&

INVESTMENT SECURITIES

permissible amount of investment.
(5) Section 26 of Chapter 235

Huntington Bank Building

fire insurance company
if prescribed conditions are met.
or

pany

Subdivisions

(g)

section

also amended

were

of that

(j)

and

to in¬

clude investments pursuant to
subdivision

new

strictions

divisions
ment

Participating
in

in

(d)

imposed
on

the

in

the
re¬

those sub¬

by

the amount of invest¬

certain

classes

of

secu¬

rities.

Progress

Field, Richards & Go.

(6) Section 81 of the New York

legal investment law for insurance

amended effective
April 27, 1955 to provide that
authorized investments in bonds,
companies

notes
ness

or

deeds

chase

of the

existence of

contract

or

Underwriters and Distributors

shall not

encumbered

be

1908

or

improved unin¬

on

to

ESTABLISHED

indebted¬

first mortgages

real property

deemed

reason

of

evidences

of trust

cumbered
be

was

secured by

a

by

Of

pur¬

Municipal & Corporate

lease-purchase

Securities

agreement pursuant to the Public

Buildings Purchase Contract Act
of 1954
ment

or

the Post Office Depart¬

Property

Act

of

.

1954

if

due or to become due un¬
der
the
purchase
contract
of
lease-purchase agreement is as¬
signed as further security for the

money
•
•

i

UNDERWRITING

DISTRIBUTING

•

51

N.

HIGH




ST.

THEOHIO COMPANY

'nofyimmfy

COLUMBUS 15,

OHIO

loan.
NORTH

the

.

CLEVELAND

CAROLINA

North

of section 58-79
legal in¬

Carolina

Bldg.

14, OHIO

Telephone PRospect 1-2770
Teletype—CV

Subdivision (e)
of

1556 Union Commerce

174

or

in¬
company or investment
fund registered under, the

closed-end

vestment

corpo¬

amount, or
to a percentage of the amount, of
the surplus fund and undivided
profit of the savings bank, was
amended effective April 22, 1955
to
include
"surplus reserve" in

utility,

industrial corporations

the

to

in

bonds, debentures,

26(i) of Chapter 235 of the
Nevy York legal investment luw
banks, limiting invest¬
securities

wa3

investment

for savings
rate

were

applicable to investment of

funds."

and

ment

cor¬

porate obligations, and stocks pre¬
ferred

life

June

to

sonal,

securities

legal investment

insurance

authorizing

(3)

adopted in
Dakota,- effective July 1,
1955, authorizing investment with¬
in the prudent-man standards in
"every kind of property real, per¬

added
OKLAHOMA

of the Oklahoma

New

to

meeting specified

default at

to

as

addi¬

and

SOUTH DAKOTA

business

above

added that

investment

to

stock

common

South

of

accumulated

viously contained in section 3, but

connection therewith

panies meeting specified require-. United States Government

any

if such

for

securities

such

in

default.

authorization

in

law

Chapter 235 of the New
legal
investment law for

applicable

all

The

invest¬
ment in securities or property not
otherwise authorized up to 5% of
of

These amend¬

met.

ments free the investments author¬

the

NEW YORK

section

conditions

are

3925.08

effective Sept. 30,

funds

(3) Section 20 of Chapter 235 of

of the bank's surplus.

in

rule for fiduciaries

tures
of
any
New York public
authority or commission, includ¬
ing revenue bonds, if prescribed

securities

of Dec. 31 next preceding.

as

rations

Development.
OHIO

Section

were

previously applicable only to in¬
vestment in manufacturing corpo¬

by

companies other than life insur¬
ance
companies
was
amended

ized

by

ing in the aggregate at

guaranteed

or

gal investment law for insurance

thereunder
from
the
adding
thereto
a
new
subsection
(g) restrictions imposed upon such
investments
when
they
were
authorizing investment of capital,
under
the
authority
of
surplus and other funds of insur¬ made
section 21 of the legal investment
ance companies in investments not
law.
qualifying
or
permitted
under
(2) Section 21(a)(2) of Chap¬
preceding subsections to an
ter 235 of the New York legal in¬
amount, not including the amount
of investments otherwise express¬ vestment law for savings banks
was
amended effective April 29,
ly authorized by law, not exceed¬

2,

assumed

(2) to make

requirements which

amended, change the earnings requirements
1955, to author¬ on shares outstanding for less than
obligations is¬ five years.

effective March 9,
ize investment in

sued,

109

were

the issuer

of

vestment

Aug.

benefit associations

districts if

sewer

credit

com¬

effective

insurance companies and fraternal

wa¬

a

rities

investment

companies other than life

surance

the

faith and credit of New York

pledged for the payment of such
obligations, and to authorize in¬

legal

legal investment law for stock in¬

struction and

authorize

is

Jersey

certain

vestment in obligations issued by,

secu¬

New

insurance companies,

life insurance companies and sec¬
tion 58-79.1 of the North Carolina

municipalities), to

railroad bonds, utility
obligations and stocks " and
of

vestment law for stock and mutual

the International Bank for Recon¬

tain

of the Nebraska

investment

security for the
payment of the interest and prin¬
cipal and (2) by amending sub¬
as

the faith and

ments

24-601

pledged

are

changes with respect .to
eligibility for investment of cer¬

stock meeting

NEBRASKA

Housing Act of 1949

investment in securities "of" such

included

assets of such

to

instrumentalities in accord¬
with the

municipalities

Hampshire legal in¬
vestment law for savings banks
was amended extensively effective
June 21, 1955.
The amendments

time

legal

investment

New

in¬

Section

invested

of its
ance

subsection

re¬

any

and

the

HAMPSHIRE

quirements

or

to 40%

securities.

NEW

corporations meeting specified
debtedness

be

may

in

of the total

account

the

stock

common

than

more

one corporation meeting specified
requirements, so that a company
may invest in not more than 20%
of the preferred stock of any one
corporation, but total investments
in preferred and common stock of
any one corporation shall not ex¬

mon

of

which

company

10% of the preferred stock of any

ceed

removed

amended effective

was

Subsection

value

the

amount

legal investment law for insurance
companies
April 16,

was

investment

and to increase from 30%

MINNESOTA
61.11

restricted

such securities to 20%

of

Section

limitation

a

which

(2633)

1707 Union Central Bldg.

CINCINNATI 2, OHIO
Telephone Main

1-3776

Teletype—CI 197 & CI 150

110

110

The Commercial and Financial Chronicle

(2634)

Continued

from

page

(not

109

Report of IB A State
Legislation Committee
under

the

to

restrictions

standing

and

this

of

statutes

notwith¬

other

any

of

section

one

nationally
recognized
rating services.

more

in¬

WEST

invest not exceeding

to

Article

3.39

assets

the

of

in

corporate

or

3% of its

and minimum surplus of insurance

Section 201.25(1) of the Wiscon¬
sin legal investment law for in¬

WASHINGTON

companies, except life, health and
The
accident companies, was amended
Washington legal invest¬ surance companies except life in¬
effective Sept. 6, 1955 to change ment law for mutual savings banks surance companies was amended
the authorized classes of permis¬ was amended, effective June 9, effective May 14, 1955, by
adding
sible investments.
1955, as follows: Section 32.20.200, new subsections to authorize in¬
authorizing investment in such vestment in equipment securities
VERMONT

section

new

interest

bearing obligations of do¬
mestic industrial corporations as
are
legal for investment by sav¬

added to the

was

Vermont legal investment law for

life insurance companies, effective
Feb. 11, 1955, to provide that a life
insurance

company

invest its funds to

may
an

"loan

banks

ings
York,

32.20.330

or

amount not

in

obligations

31st

next

preceding

in

loans

investments not qualifying

permitted

section

authorize

to

exceed

in

to

New

interest

15%

bearing

issued, guaranteed

or

assumed by industrial, manufac¬
turing, mining, merchandising or
commercial financing corporations

or

or

not

charter

its

under

Dec.

its

a new

of

not

of

funds

of

of the

State

added

was

investment

its admitted

as

the

repealed;

was

exceeding in the aggregate 3% of
assets

or

evidencing rights to receive
ments agreed to
be made
contract

railroads

in

United

Investment

(2) motor vehicles

used

subject to specified
quirements.

1900

8.301

of

investment

STOCK

EXCHANGE

1st—Leon

the

cured

or

18

Hole

bank's

the

law

Frederick C.

York

WIRE
T.

Broadway

New

&

1st—Russell M.

WORTH

5,

210

N.

Y.

TO

NEW

Western

Broad

4-0220

a

Philadelphia

Dalenz, Calvin Bullock, Ltd., New York City.

Ergood, Jr., Stroud & Company, Incorporated.

Costigan, Edward D. Jones & Co., St. Louis,

Kickers Handicap—Ladies:
Mrs. Frank L.
Mixed

Lucke., Laidlaw & Co., New York.

Foursome—18

1st—Mr.

G.

Hole

Edward

Handicap:

Howard,

Piper,
Minneapolis; Mrs. Peter Flanigan

New
2nd—Mr.

Jaffray & Hopwood,
(Dillon, Reed & Co.),

York.

Mrs.

and

New

York

Howard

B.

Dean, Harris, Upham & Co.,

City.

re¬

18

Hole

Tourney—Ladies:

1st—Low Gross:

7.*,

2nd—Mrs.

fiduci¬

F.

Brian

burgh.':

77: ...:,7'

(Keith Reed & Co.), Dallas.

Reuter

(Mellon National

'

7

Bank), Pitts¬

''7,777\ 777 ,'7,7;-

1st—Low Net:
Mrs.

insured

by

an agency

common

trust

S.,
fund

584

of

the

Code

of

U.

S.

1954

investment

W.

Ahearn
-7

.

(Rockland-Atlas

National Bank),

,y/77;:.7 „7 77;.,7/'77 7

7;7;7:1

7,

Fund

18 Holes

se¬

(Second Day):

1st—Low Gross:

or

Mrs.

(2)

Jerome

F.

Teleger

(Dempsey-Tegeler

2nd—Mrs.

Stock

Exchange

Mrs.

(3)

John

L.

Kenower

(Kenower,'' MacArthur

Investment Company Act of 1940.

2nd—Mrs.

Severance

Pa.

Stock

in

Exchange

Municipal Bonds

Exchange

COMPLETE TRADING FACILITIES
Incoming
New

deliveries

York

City

or

accepted

in

Philadelphia

RETAIL DISTRIBUTION

I2.T Soil III II road

Street, Philadelphia

PEnnypacker 5-7700

New York

Pa.

THE PHILADELPHIA NATIONAL BANK

Teletype PH 180

Manhasset

Altoona

Reading

DIRECT TELEPHONE
CONNECTION TO

BAUMGARTNER, DOWNING

&

CO., BALTIMORE, MD.

PRIVATE TELEPHONES
BETWEEN OFFICES




Co.),

(F. Eberst.adt & Co., Inc.), New

York.

Bldg.

Dealers

American

&

Detroit*

com¬

6-4O40

Philadelphia-Baltimore Stock

St.

George J. Gruner (John Nuveen & Co.), New York.

Members
York

Co.),

1st—Low Net:

Penington, Colket & Co.
New

&

Louis.

as

Sts.

Established 1896

77* 7

2n'd—Mrs. Lewis F. Lyne (Mercantile National Bank), Dallas.

Internal
and

John

Boston.,

622

Savings

New

Wilde, Janney & Co., Philadelphia.

YORK

Chestnut

KIngsley

Sanford,

Mo.

panies regulated under the U. S.

TELETYPE-PH

&

Beil, Jr., Beil & Hough, Inc., St. Petersburg, Fla.

2nd—Edward J.

Wyoming
for

underwritten,

mutual funds of

T.

Hattier

18 Hole Handicap—(Second Day)—Men:

defined in section 169 of the U. S.

Revenue

DIRECT

White,

Kicker's Handicaps—Men:

or

certificates of deposit

extent

or

section

;

Lees, Jr., Ira Haupt & Co., New York City.

2nd—John McG.

Internal Revenue Code of 1939 and

Dealers in

•

':;|7/.V.-

2nd—Bertram M.

■

STATE, MUNICIPAL and REVENUE BONDS

Trophy—Men:

18 Hole Handicap—(First Day)—Men:

authorizing fi¬
duciaries to invest in (1) savings
and loan associations, building and
"loan associations and bank savings

a

Brokers in

Canada

Tourney—Men:

Hattier,- Jr.,

Mrs. Jack R. Munger

instrumentality of the U.

LISTED and UNLISTED SECURITIES

of

Alden, Jr., O'Neil, Alden & Co., Louisville.'

Orleans.

subdivisions

to

PHILA.-BALTIMORE STOCK EXCHANGE

AMERICAN

Association

Munger, Keith Reed & Co., Dallas.

was

accounts

NEW YORK STOCK EXCHANGE

R.

1st—Gilbert

WYOMING

new

MEMBERS

Lind, Camp & Co., Portland, Oreg.
Trost, Stein Bros. & Boyce, Louisville.

Robert E. Christie Memorial

amended, effective May
20, 1955, by adding thereto three

ESTABLISHED

•

2nd—William O.

aircraft

purposes,

aries

j. w. sparks & co.

Varnedoe, Var.nedoe, Chisholm & Co., Inc.,

pay¬

upon

States

or

l

to be used for commercial

or

Section

120

L.

Bankers

1st—Jack

Canada under specified conditions

and

;

Ellis, Courts & Co., Atlanta.

1st—Herman L.

of

the

■

Seniors Tournament—Low Gross—Men:

leasing or con¬
ditional sale for equipment for
use
by companies operating (1)
any

legal

A.

B.

Texas

legal rities
(1) Adding to the authorization
not
otherwise
authorized
subject to specified conditions, was to invest in the legal list a pro¬
companies was amended effective amended effective May 25, 1955, vision subjecting fiduciaries to the
Sept. 6, 1955 by adding a new sub¬ to authorize investment in shares "prudent man" rule in investing
section (9) to provide that mutual of an
open-end or closed-end man¬ under the legal list.
life insurance companies must at
agement
type
investment
com¬
(2) Adding a new subsection (h)
the
time
of
incorporation have pany or investment trust which is
authorizing investment, subject to
their capital and surplus invested
registered under the Federal In¬ specified conditions, in corporate
only in specified investments, but vestment Company Act of 1940 securities and shares of
any openafter a charter is granted surplus and which
or
closed-end
may be sold under the end
management
in excess of $100,000 may be in¬
rules, regulations and exemptions type investment company or in¬
vested as provided for investments of the Commissioner of
Banking vestment trust registered under
by stock companies.
and Insurance under
the provi¬ the Federal Investment Company
Article 2.08 of the Texas Insur¬ sions of Chapter 383 of the Ver¬ Act of 1940.
ance Code, prescribing authorized
mont statutes (subject to specified
WISCONSIN
investments for the capital stock conditions).

■;

■

November 27-December 2

Little Trophy—Men:

2nd—Milton S.

investment law for life insurance

—

Savannah.

10, 1955 by:

trust secu¬

■

Hollywood, Fla.

—

2nd—Samuel

VIRGINIA

the

TEXAS

A

Alden II.

1st—John

Section 9080 of the Vermont le¬
provisions of any
Section 2 of the West Virginia
other section or act regulating or
gal investment law for insurance
legal investment law for fiduci¬
governing investment.
companies, authorizing a company aries was
amended effective June

*

•

,

vestment

state."

1

•

1955 Convention

SEC, and rated among the four
highest classifications of two or

the

Thursday, December 15,1955

RESULTS OF GOLF TOURNAMENTS
AT THE m CONVENTION

in

such
obligations of
corporation), meeting
specified earnings and financial
requirements, registered with the
any

capital and surplus, without regard

than 2% of funds to be

more

invested

...

.

i

182

Volume

Number 5490

.

.

.

The Commercial and Financial Chronicle

(2635)
Continued

from

35

page

c

cal

*

products, and youjn the in-

vestment

There's No Limit
midable

challenge
in

sales

our

now

five

of

doubling
It

years.

looks

though that estimate

as

was

have

such

stalwart

a

faith

in

the future of business in gen¬
eral and the outlook for the paper

industry in particular, that we are
planning an ambitious pro¬

now

which

gram

further
next

sales

five

that

will

call

our

business will result from

products

the

anticipate
increased
sales

of

in various stages of

now

to

never

become

needs

let

profes¬

so

sionalized that initiative and indi¬

lost.

are

In

the

last

for

that
our

direct

a

as

country's

we

product research and development
groups are hard at work engineering new ideas to meet new needs
and
to
make a
better life for

academic
both

to

help

and

new

calling on the
and uni¬

us

the

one

for

securities

training for

serving

people

our

middle

and top manage¬
Another program we

ment levels.

find

with advanced

are

great colleges

versities to

at

V

ours.

Scott,

better

ways

blient companies on
hand, and your customers
the

other.

It would be
presumptuous for

to

try to tell

and

of

your

on

what these

you

better ways

are.

me

new

However, it

have is

with several universities.

Faculty

is my hope that
you will take up
the challenge because we
in in-

members

months

dustry need

manufactured

which

and

will

be

distributed*in

exchange arrangement

an

spend

foreign countries by companies.in

working in

which

several

rious job

have

we

in¬

financial

a

Substantial
needed
ment

capital will be

new

finance

to

and

growth

has

home

depending

turned

''When

out

anyone

in

be

to

hopelessly

shortsighted and pessimistic." Let's
not
give anyone the chance to
of

being shortsighted
pessimistic. Never let it be

accuse

and

us

said

that in selling a goal (as for
example, doubling the number of

stockholders)

common

you

goal is set and

a

made,

have

we

that

there

is

we

basis.
I

developing

plan is

a

just

only

that

begun.

strongly the great
has

idea

an

here

for

exchange
program under which your firms
would invite corporate financial
an

apparent

that

cannot

we

depend

1955 methods to carry us to our

on

tremendous
you

nor

we

by

nesses

double

same

busi¬

our

twice

as

old thing. With

a

to

us

a

in

have

One

business

and see if they
application to you.
of major concern is

direct

a

area

critical

scarcity

of

trained

Judging from a recent
"Exchange" magazine,
it also appears
to be receiving
some serious thought by you.
The
problem is how to develop tne

manpower.

article

in

professional

concept needed
in
management—not only at the top
but, more importantly, at the sec¬
ond and

even

These

being solved in

problems

are

try.

I

grams

careful

convinced

sional

developed,

with

help,

your

greatest production machine
in the world, and we have
made,

could

Lhear, some of you
following d constructive prac¬

tice

of

recruiting

and

training.
This is particularly true with re¬
spect to investment analysts, who
rapidly

developing

into

a

attention.

One

of

you,:;Charlie

Harding,

recently said th&t the most impor¬
tant gauge the ihvestment banker
can

to

use

worth of
its

measure

the

corporation is

a

future
.

.

.

not

background not its products,

plants,
but

.

eveiiMts balance sheet

or

its

.

.

management.

wholeheartedly I

feel

I agree

that,

in

appraising companies, entirely too
much emphasises placed on sta¬
tistics alone anjd not enough on

through

is

produced

must

be

have failed in the recent

boom years to turn the
revealing
of the scientific approach

light

upon

the elements of distribution

to the extent

have

we

on

which

on

The

the

new

read,

ple

of

;

f

of

one

u.

primary jobs

your

s.

tential

our

depends would be more
effectively introduced at lower

cost.

participate.

reach out to the

products

expansion

than two million peo¬
I believe it

more

now

in

asist

You

have

just

also that

—in

in this effort.

said

that

And

limitless future of dynamic industrial

growth and great prosperity

for the

individual, the nation and

into

Newi\rea

of Research

ours.
new

services.

It is th&

area

the world.

'

Role of Investment Bankers in
I

see

evolution

an

in

the

pattern

coming

involved
can

tail sales.

tion

type

of
re-

the

has

a

same

evolu-

recently

taken

commercial

banking
field as it did years ago in the
grocery
and drug businesses.
I
take it from reading your publithat

being aimed
the

holders.

investment
more

small

and

selling is
more

individual

This method

selling

woefully inadequate.
rities

field, I'm

many

salesmen

share-

tion was demanded of you when
the
first
offering of Campbell
Soup stock was recently made,

we

than

those

of

But

A

constructive

could

SOUTH

BROAD

PHILADELPHIA
N. Y. Phones
REctor 2-1695
HAnover 2-4558




T elelype

Judge Medina in the now historic
decision, when he said: "It would
be difficult to exaggerate the im¬
to the national

We in

advice

industry
of

use

the facts and

portance

stock,

I

of

told

am

investment

PH

538

Phila. Phone

KIngsley 5-0650

banking

economy."

that

in the

course

of

Kei*h

Funston has sparked a that court action you characterized
develop- hard-hitting campaign to widen yourselves as belonging to a "pro¬
ment of sales and
advertising pro- the base of stock ownership. I am fession." I say that in the next
grams, but there are great voids §lad to see that the financial prpss ten years you
will have every
in
the
information available in has lent its ."powerful support to opportunity to
prove yourselves to
these areas. For example, we must these efforts and that some of you be true
professionals. We in in¬
learn how to determine in advance have seen fit to tie-in your own
dustry pray you succeed; for, as
and with more
certainty the advertising and public relations in the past, we can succeed only
relative
results
of
advertising, programs with this theme,
if we succeed together.
The re¬
selors

our

and

advertising

others

in

ccun-

the

promotion, and personal sales
penditures

before

manpower

and

tribution

apply

as

them

we

can

effectively
to

ex-

apply
to

dis-

as

resources

we

production.

It

is

agreed

that the future of

country depends upon our
ability to show men and women
everywhere that our competitive

wards

of

the

future

can

our

enterprise system is the best

secu¬

us,

greater

been before
is

no

limit

than

they

on

tomorrow:

Drexel & Co.
Established 1838

of

Industrial and Railroad Securities

State, Municipal and Revenue Obligations

American Stock

Exchange

Exchange (Assoc.)

Philadelphia-Baltimore Stock Exchange

New

1500 Walnut St.

30 Wall Street

York

5

be, for

have

because, for

Philadelphia 1

PA.

and

Foundation in marketing its Ford

same

STREET

(9),

you,

principle is to be followed by the Ford

New York Stock

123

area

it recognizes full well the
pivotal
role you play in America's future.
We certainly echo the words of

Members

Exchange

program

to
this
important
bring rich dividends.

Industry has faith in

of

neg¬

applied

High Grade Corporate Bonds and Stocks

Members Philadelphia-Baltimore Stock

pro¬

field

esses.

Public Utility,

SCHMIDT, POOLE, ROBERTS & PARKE

the

and I understand the

Underwriters

Municipal Bonds

profes¬

chemistry,

salesmanship has been sadly
lected.

Underwriters and Distributors

Pennsylvania and General Market

too
rea¬

technology and

fessionalism.

in industry

Trading Markets

for

of

In

secu¬

see

engineering, physics, and account¬
ing we require higher and higher
standards

provide, for the most part, physi¬

Retail Distributors

I

selected

sional competence.

to-

of distribu-

other

sons

In the

afraid

processes, and

Although

honored

an

The selection methods
sales" and
training of salesmen are still

describe only as

This is the

which

place in

in

strive to make

profession.

of
investment
banking
similar to that in industry generally. It is evident, from what I
have observed, that you are be-

selling I

I also believe that both of us
Should give increasing attention to
the character and development of
our
sales
personnel. We should

material,
products and manufacturing proc-

of research

produces,

I
in

America.
,

;
a

what

believe

distribution, backed by common stocks. I can assure you
continuing programs of research that I do, just as I believe in the
in the social sciences, can open a future
growth in the economy of

ap¬

now

I

scientific

oujf investment

selecting

po¬

and

can

gather from

gahge—management

bankers.
We Are in

industry must

in

we

same

the

up

stock market. We

however,

you

may

to

other millions in

make

common

industry,

will

V

who

managements, their policies, and
the morale of tneir people. I feel
ply the

wider

ownership through employee
which, ac¬
cording to an article I recently

economy

ward

and

Yet,

In recent years the United
States

impor¬

an

toward

the

what

pro¬

training.

far

goes

contribution

their

Indus¬

stock

consumption.

we

through

on-the-job

which

tant

marketing costs

is

sold,

recruiting

profes¬

service

invest

stability through better
knowledge of how to stimulate

that

am

this

From what

college

and

type of financial manage-

a

to

greater

tential clients, r

ways,

orientation

are

and their capital.

stock purchase plans in

cations

number of

continuing

of

which

,..

lowering of
prices and widening of markets,
Sales, production, employment
and
earnings
would
be
given

science, great strides in
research. Yet, knowing as we do

a

and

exam-

handful

in

try is already making

bring about consider-

Consequent

a'

something
bring forth a far
greater
understanding
between
you,
your cllehts,
and your po¬
like

letyli$ turn to another
beginning with aggressive and in¬ challenging aspee§ of your business
telligent

industry

good

a

the

the third tiers.

manpower

by

beyond the conventional pattern,

from your firms to work in indus¬

Neither

starting point, let's look
few specific areas of concern

as

at

the

can

simply doing

much of the

this

goals of 1965.

set

need

the

too

you

taking the
furnishing inaustry

ment

has

highly trained aind respected pro¬
fessional groUph But it must not
stop with then}: All segments of
your business ^deserve
the same

immediately

being

with

people to work and train in your
and send promising men

begin a bold, ruthless self-ap¬
praisal of our strengths and weak¬
becomes

of

more

group who
initiative in

shops

are

It

for

your

It is at this point when we should

nesses.

and

rity
work

re->

a

funda-

Expanding Stock Ownership

emphasize to

be¬

is both useful and inspiring.

we

financing—buV
continuing

•

cannot

ples

not

on a

and

world

—

when

years,

problem of

importantly,

can

educational

of

more

As

sound relationship that

a

few

every
a

we

industry

are

know from experience

when

business.

tween the

are

guilty of aiming too low.
We

the

Perhaps there is the framework
Greene-

the past has attempted to predict
the long-range future, his forecast

has

of

at

both

Crawford

said

once

have

tivities

tent than before.

wait

va¬

see

and your distributing or¬
ganizations to an even greater ex¬

friend

on

get deeper into this area,

you

My

company

develop¬

our

and abroad. We will be
on

our

assignments—counseling
advising us on different ac¬

and

terest.

services

your

could

the

of distribu-

It is my personal conviction that

similar

Scott's

into

tion

...

well

At

analysis such

program

mentals of all phases
able reduction in

^

as

the final

Industrial

planning, in addition to products
to

»In

search

respective

research.

analysis, business is human rela-. everyone..
\ r
tionships.
And to me
there
is
,yJ. can foresee the time when you
nothing more important than the Will be
doing not only statistical
human being
in your business research but also basic
research

even

over

We

large part of

a

for

increases

years.

management
vidualism

entirely too conservative.
We

must, be careful

we

services, I believe
parallel exists in

Tomorrow

on

banking business provide

111

us,

ever

there

112

(2636)

The Commercial and Financial
Chronicle

Continued

from

ating costs,
gravimetric

53

page

have

Gas Secnrities Committee

ered

the gasoline yield

from crude oil

from

to

in

35%

the

in

1925

just

years

In

five

Recent

with

the

of

The

seismograph

cov¬

put

radar, continuous radio

leaving

sonar

of

distillates has increased,
gasoline varying from year
year
within a fairly narrow

with
to

range.

factors

consumer

barrel.

arid

Since

in

and

serves

has

been

less

barrel for every

ucts.

Consumption
to

months

peak

a

while

of

gasoline

The

reserves

the

in

summer

hole

drilled

fuel

oils

greatest demand during

in

are

the win¬

Since these variations do not

ter.

fully offset

one

product

one

another, and since
be

cannot

without producing the

industry
sonal

added

have

Little wonder, then, that the in¬
dustry has eyed with interest the
possibility in tideland areas of a

structure

new

of

in¬

the

traps and forma¬

Texas

The

and

present is

of

facilities

and type of product.

a

not

necessarily

mensurate

produce

to

was

ods

ment

Oil

it

were

the

oil

necessary

and

than

example
the

industry's

._

staggering

here

be

deterrent.

amplified

new

techniques,

a

half-

dollars

industry

is

so

Here is the

rec¬

on

Margin**

Products

2.82

0.91
1.03

2.56

1.13
0.94

3.48

2.55

0.79

3.34

2.59

1.11
0.99

lease off the

Magnolia Petroleum Co.
Stanolind Oil Co.

Humble Oil and Refining Co.
The Texas Co.

3.70

1.92

under

(The
California Company Group)
Phillips Petroleum Co.

3.69

2.54

under lease to oil companies
coast
of Louisiana, and
acres

2.91

Atlantic Refining Co.
Cities Service Co.

1946—

1.39

0.82

2.21

1945—

1.20

0.87

2.07

no

1944—

1.20

0.85

2.05

1943—

1.20

0.78

1.98

1942—

1.20

0.71

1.91

1941...

1.14

0.71

1.85

1.02

0.62

1.64

Pure

..

Seaboard Oil Co.
Shell

risks,
and,

♦Weighted price
principal areas.

the

at
,

well

in

eight

." V

.

\:

**Weighted
in
nine
refinery
markets
four principal
products, i.e., gasoline,
kerosene, light fuel oil, and heavy fuel oil.
on

above all, final proof that the in¬

Oil

Gulf Oil

lies

known

land

spent

a

vast

pool of petrol¬

perhaps equal to one-half of

eum,

in

reserves

the whole

of the United States.

area

Natural

Gas

Legislation

When

sider an Amendment to the Na¬
tural Gas Act, known as the Har¬
ris Bill in the House of
Repre¬

As

coast,

seven

which

four

were

discovered, of
oil
and
three
The total spent off the

gas.

on

geophysical work
and drilling, up to June
1, 1955,
was about $100 million.
\
Off

the

Louisiana

coast,

June

1,

fields

discovered, of which

1955,

oil and 35

800
of

wells

which

there

are

had

as

been

33

gas. A total of

have been

have

of

In

over

drilled, 60%

the

Senate

the

by

that

Harris

Bill
will be sponsored
by Senator Ful-

bright, and will there be
to

the

as

referred

"Fulbright Bill."

The purpose of this report is to
a brief history
leading up to

68
are

been

give

this important legislation,

com¬

a

plete

explanation of the Bill, to¬
gether with the implications of its
passage

been

made

55

million

barrels

Present production

50,000 barrels
It

is

too

estimate the

Estimates
to

20

to

reserves

billion
the

rate

accurately

in the Gulf.

ranged from
barrels of oil

with

most

12

billion

widely

mission

from

the

bar¬

accepted

significantly

gathering

systems

six

are

and

completed

v.'XvX-Xv."-

oil

two

has

30-mile

one

Act

interpreted,

originally

the

function,

pure

by

and simple.

con¬

1954,

a

split decision

the

United
States
Supreme
placed the sale of a basic
commodity by a producer under
Federal price regulation for the
Court

first time in the peacetime

history

of the United States.

gas

Magnolia

gathering systems.

the

Federal Power Commission
regu¬
lated
a
Public
Utility

greater than that on land.
At the present time, off the coast

there

trans¬

gas

As

and

much

V>X'.

companies.

was

higher costs of finding this oil, the
cost of a
gathering system is also

Louisiana,

natural

one

On June 7,

Aside

the rates charged

over

interstate

by

figure.

of

defeat.

or

The Natural Gas Act, which was
a law on June 21,
1938, gave
the
Federal
Power
Commission

jurisdiction

day.

per

early

the

at

oil.

have

condensate,
rels

is

of

long gathering system, which

Corp.

sentatives, and passed
body on July 28, 1955.

discoveries.
Total production to date from all
fields off the Louisiana coast has

recently

Co.

fields

were

Texas coast

Superior Oil Co.

1940—

to

..

..

been

offshore

of June 1,
1955, there had
been 33 wells drilled off the Texas

2,000,000

Standard of California

3.62

1951—.

over

Companies partici¬
pating in offshore exploration are:

3.76

1.06

now

coast of Texas.

3.73

2.73

are

waters

the

with

it

is felt that some¬
beneath
these
coastal

where

for leases

and the bal¬

has

familiar

Congress reconvenes in
January, 1956, the Senate will con¬

of

the

900,000

encounter

costs,

completely

Gross

2.56

..

the

But

from

million

a

is

prove

approach

we

off

1953—

..

no

acres

Barrel)

1952...

..

off¬

shelf, that these staggering outlays

There

Crude*

1954

oil-bearing

located,

ord to date:

Realization

of

..

For

drill.

cost

over

$300 million

those

operations,

Congress passed the two
giving Texas and Louisiana
rights to their tidelands.

cheap¬
linear

as

per

geophysical work.

found

to

offshore exploration and develop¬
ment.

oper-

1947—

gas

could

per

wells

to

of

$77

since

open

convinced of the presence of sub¬
stantial fields on the continental

order

1948—

industry
dynamic and forward-thinking,
better

The

in

used,

Price

...

If

necessity.

Refiners

(Dollars

..

that

a

to

are

1950—

Development

million

leases.

spent

coast,

Despite

bills

each, out after offshore oil.

Offshore

open

different equip¬

been

industry.

turned for every six or seven in¬
vested, the industry shows no sign
of backing
away.
In the opinion

Company leads

leases,

man¬

are

dollars

Gross Profit Margins of

Year

been

did the

as

has

the Texas

oil

fact that up to the present
time only one dollar has been re¬

Co.

in Louisiana. $40 to
$50 mil¬
lion has been spent in rentals. Of
the $400 million spent for

land.

has

Oil

$400,000,000 for

over

at
present
nearly a
seagoing drilling barges,
costing from two to five million

course,

EXHIBIT "A"

1949—
Offshore Exploration and

of

used in

increasing resolution and

com¬

closely with demand.

and

became

additional

flexibility, and should help the
industry
to
gear
yields
more

could be

New

pro¬

profits, but
are necessary to maintain simply
a
competitive position.
On the
other hand, the modern catalytic
cracking,
reforming, and other
equipment is expected to increase

cheaply,

potential

a

There

perfect geophysical meth¬

which

water.

involves expenditures which

gram

do

Such

off

in¬

drilling presents the same
problems in costs and equip¬

ment

Louisiana

problem,

principal methods

ing

large

runs

the

million

by

dozen

first

frequently find reflection in un¬
satisfactory product prices.
From the foregoing, it must be
concluded that major increases in
refining capacity are not present¬
ly contemplated; that emphasis at
modernizing exist¬
to improve quality

prolific

so

Gulf coasts.

ventories. Excessive accumulations

on

Once

tory of the

over

shore

continuation

on

be done

can

on

Co.
Co.

all others with 587,000 acres leased.
These
companies
have
spent

land-borne counter¬

more

mile than

along

sea¬

or

Gas

Signal Oil & Gas Co.

and

greater

equipment and
a

water areas

ly,

wave

then

operation

Continental Oil

geophysical

much

part, seismic work

foot of
constantly

tions which have been

product

marine

than

power

declined.

wide

in

replaced

and

in the Gulf of Mexico is
tiuly one

ance

involves

vestment in

a

per

also

been

fields

of the biggest ventures in the his¬

Forrest

methods.

work

barrel produced.

others, the

experiences

fluctuations

obtained

half

than

have

Although

ratio has been

different ways for different prod¬
rises

of

reserves

in

changes

requirements,

These

the War, this
declining. Over the
last five years, the net gain in re¬
one

-

Oil demand fluctuates also with
seasonal

net gain in

a

by

three

central point on land.
The great amphibious
a

El Paso Natural Gas

the most widely
Early surveying was
wire line and transit.

done

to

Peoples Gas Production Co.

airborne

used method.

adding about two barrels to the
country's crude oil reserves for
every barrel of crude produced,

nects

Western Natural

is

War II, the domestic industry was

Since then, residual yields
have declined materially and out¬

area

Standard of Ohio

reflection

War II.

the

Sinclair Oil Co.

This

areas.

in

newcomers

are:

remote-cpntroiled gravity meter, or gravimeter, has
been employed
in a

before World

years

have been

areas

offshore

number

the

off

Texas.

magnetometer.

bigness.

World

before

tively small

dustry thinks and acts in terms of

45%

around

done
and

magnetic,
Major
geophysics
California,
Compara¬

seismic.

offshore

been

Louisiana

been

and

of

amounts

Repoit oi IBA Oil and Natural

have

Thursday, December 15,1955

...

The

decision

famous

troleum
et

was

in

the

now

Phillips Case (Phillips Pe¬

al.).

Company

vs.

Wisconsin,

It stated that the Federal

V/«VV>

I

Oil Co.

Continental Oil Co.

II

jgc
ESTABLISHED

1912

Tide Water Associated Oil
Sun Oil Co.

Kerr-McGee Oil

$5

Industries, Inc.

BROOKE & CO.
Members

Philadelphia-Baltimore Stock Exchange
p

§
m

B utcher

Sh errerd

&

ESTABLISHED

N. W. Corner 16th & Locust Sts.

300 N. Charles St.

x-x
XX

Philadelphia 2, Pa.

!£

Baltimore 1, Md.

&

1910
,

✓
'

Underwriters, Distributors, Dealers
CORPORATE

AND

MUNICIPAL

in

m i.

mmmmm.

/

wm&M

UNDERWRITERS AND DEALERS

SECURITIES

Industrial, Public Utility, Railroad, Real Estate,
Municipal Securities

MEMBERS
New

York

Stock

Exchange

Philadelphia-Baltimore

American Stock
Exchange

Stock

Exchange

UNLISTED TRADING DEPARTMENT

(Associate)

Established 1865

1500 WALNUT 5TREET

.

PHILADELPHIA 2, PA.

BlOREN

6-

Co.

MEMBERS
New

Philadelphia Telephone
PEnnypacker 5-2700




Teletype
PH-4

m

M

1

New York Telephone

BArclay 7-4641

York

Stock

Exchange

American Stock
Exchange
Philadelphia-Baltimore Stock Exchange

1508 Walnut Street

120

Broadway

Philadelphia 2, Pa.

New York 5, N. Y.

PEnnypacker 5-9400

WHitehall 3-0590

Yolume 182

Power
to

Number 5490

Commission has

control

.

.

the

The Commercial and Financial Chronicle

.

right

and

regulate prices at
which independent producers sell
their

natural

to

gas

transmission

Commission.
not include

The

lines.

state

across

Phillips

placed

the Natural

for

decision

not only
interpretation on

new

a

Gas

Act, but further

charged the Federal
mission

to

resulted

in

Power

Com¬

accordingly.

act

This

the

Commission

mulgating Order No. 174
16,

1954, under which

tural

gas

for

commerce

Certificate

a

July

every

na¬

gas

must

of

pro¬

on

producer selling

interstate

the

industry

finally

introduction

in

Con¬

on

House

ience and

whether

Natural Gas Act, a copy of which
is attached as an Addendum to
this Report.

Hearings on the Bill before the
House Interstate and Foreign Com¬
merce
Committee were long and

finally

was

re¬

ported out of the House Commit¬
tee

by

interstate

for its gas is the reasonable
market price.
pay

or
also

bill

risdiction

of

broadens

Many

by

mand

portation of gas
in

a

margin

of

209

ayes

to

203

A

Summary of the Harris-Fulbright Bill, as prepared by the
General Gas Committee, is quoted
below:

H. R.

between

point

a

the field

near

local

a

and

where

highly

produced

Oren Harris

purchased by them from their af¬
filiates should be expensed at the
reasonable market price.
the

the
is

natural gas from excessive prices.
The bill makes no change in the
over

the rates charged

Bill

tions, there

will

the

entire

and renegotiated contracts

as

of

ments
in

the

seeing

its

all

This

oil

the

gives

a

protection

to

which they did not

consumers

tural

Gas

Act

was

approved)

to

June

7, 1954 (the date of the Phil¬
lips decision), by providing:
(1) That

an

interstate transmis¬

sion company may not pass on to
the consumer more than the rea¬
sonable
gas

it

made

is

market

price

purchases
or

natural

of

under

contracts

renegotiated after the bill

enacted

into

law.

crease

above

the reasonable

mar¬

ket

exist¬

From the Administration's

of

the Harris Bill

came

Of
the

Feb.

ducers

utility status for

would

undermine

pro¬

future

supplies of gas by killing the in¬
centive to explore for and develop
new

It

the

for

reserves

been

such

established

by

the

As

a

Texas

success

of

as

as

all

oil

the

and

current

the

problems in

recting

gas

report, the Con¬
had begun consideration of
Agreements Act.
On

years,

had

without voting

of

been introduced

ports

oil

of

commodities.

A

pleasantries.
has

which

Everything
or

extreme

said

series

tee

a

sources

was

a

need

The

to

modify the trade

levels

increased
eral

rates

for

was
given the primary re¬
sponsibility of initiating action

very

the

under
ment

grow¬

to

On

Act.

new

the

Defense

Trade

Aug. 8,

the

Continued

agree¬

protect

consumers

contracts to

ceil¬

From

the

mittee's

see

by

Director of

on

should

examining

STROUD & COMPANY

if prices are com¬

INCORPORATED

the

foregoing [the Com¬
analysis of the pending

PHILADELPHIA
«

.

f

■

■

Dealers in

Underwriters & Distributors

Corporate and Municipal

■

r

-

-

'

•

-

.

•

Securities
State, Municipal and Authority

Specializing in

.

Public

Pennsylvania Tax Free Issues

Bonds

Equipment Trust Certificates

Utility, Railroad and Industrial Securities
Philadelphia Bank Stocks

Yarnall, Biddle

& Co.

Members
New

York Stock

Exchange

Philadelphia-Baltimore Stock Exchange
American Stock
1528

WALNUT

STREET,




NEW YORK

Exchange (Assoc.)
PHILADELPHIA

2,

PA.

\

•

PITTSBURGH

•

ALLENTOWN

•

LANCASTER

•

ATLANTIC CITY

•

Amend¬

Agreements

interstate

Commission

Re¬

Policy.

companies, the Fed¬

Power

recom¬

tion

other

House, however,

there

exceed

The Office of Defense Mobiliza¬

limit im¬
of

tako

by the Cabinet Commit¬
Energy Supplies and

on

ing recognition in Congress of the

by both

validity.

that

to

on

certain

and

close votes in the

sides

mended

which

amendments

indicated

has been written

continue to

tives voted to extend that Act for
number

to

should be exercised if oil imports

17, the House of Representa¬

three

President

the
to

adjust imports of any
when
such imports
threaten to
impair the national
security. In adopting this substi¬
tute amendment, the Senate made
clear its intent that this, authority

Trade

Feb.

import3,

commodity

Committee's

gress

Import Situation

oil

the "Defense Amendment," di¬

action

def¬

Prior to the release of the Cabi¬
net

limiting

the Senate adopted what is known

policy to prevent excessive
imports.

an

Bill.

the

a

substitute for the proposed

a

amendment

recognized that imports
serious problem affecting

Arguments for and against im¬
ports
go
far
beyond
academic

petitively arrived at and represent
the reasonable market field price.

ing has

was

interstate

than the reasonable market price
their contracts because

This

top level report

a

Coun~

consistent national pol¬

a

declare, however,
that in considering certification of
new
lines, and applications for
transmission

Sellers cannot cancel

that

1954

to these imports.

as

did

price, the price to be paid for
gas under such contracts, and the
interstate pipeline companies shall
not pass on to the consumer more
of such gas.

of

the gas producers.

26, 1955, this Committee de¬
a

to have

icy

the national security, and that the

industry, that of
excessive imports ranks equally,
if not above, the disastrous impact
of the Phillips Case Decision on

Report of the President's Cabinet

clared that

the

The

the

Advisory Committee on Energy
Supplies and Resources Policy. On

defense.

time

were

[Text of Bill omitted.—Ed.]

point

from

Johnson

influence

view, the background thinking

on

market.

(2) That escalator clauses in
existing contracts shall not in¬

in

clauses

not

inite

Committee's analysis of each Sec¬
tion of the pending Bill.]

have

during the 16 years from
June 21, 1938 (the date the Na¬

escalation

should

government should pursue

ing contracts. [Ed. Note: Omitted
here, for space reasons, is the

to

con¬

1954 ratio to domestic

leaders also feel that the return of

lic

as

Policy.

production in the interests of

ernment

Industry

passage.

oil

National Petroleum

The

imports of crude oil
fuel

amendment

the average 1946-51

cil, representing all segments of
petroleum industry, has en¬
dorsed the principle that fair and
equitable
relationships
should
prevail between total oil imports
and domestic oil demands.
Thus,
the past year has seen the indus¬
try and the government come to
substantial
agreement,
for
the
first time, that oil imports are a
matter of public concern directly
affecting the national welfare and
security, and that it is necessary

by the Executive Branch of Gov¬

industry interested

Senator

bill

that

Committee

a

ex¬

the

Energy

on

Resources

residual

and

active Senate leader would greatly

This

and

Cabinet

cluded

seg¬

further and protects the consumer

pub¬

Committee

proposed
on

For

Cabinet Committee used the

was the release on Feb. 26,
1955, of the report by the special

Supplies

only.

oper-.

were

ratio.

ment

Cabinet

detail

based

oil

differences

relationship between imports and
domestic
operations,
while
the

suitors.

jlatest developments in the con¬
troversy.
The first significant develop¬

the Senate, but not with¬
by

East, with the Com¬
competitive

as

This report, therefore, will con¬
cern
itself
with
reporting the

chance

suggested in the Report, but goes

com¬

the

task

same

solution reached.

With

domestic

and

ample,

exceed the

effort

imports

was

first

continued

good¬

well

the

Com¬

of both the

Report was to establish a
relationship between oil

of

have

recom¬

definite

matter

We

the

Cabinet

purpose

The

national

out

the

mittee

Indeed,
the complexity of the
problem
suggests
that
perhaps
there may never be a satisfactory

needless status quo of

even

retain

as

the

of

The

ations.

Bill has
pass

must

principle

amendment and the Cabinet Com¬

both domestic and
political
implica¬

economic

munists

industry.

better than

mental

a

proposed legislation
the same funda¬

on

Canada.

to

by interstate natural gas trans¬
mission companies. The Commis¬
sion continues to regulate the

utility functions of such
panies.

and

in the Middle

Consensus of opinion in the in¬
a

This

based

was

being of
our friendly Western
Hemisphere
nations, such as Venezuela and

delay, the under¬
lying philosophy of the Cabinet
Committee, in regard to resources
development, would come into
even
sharper focus.
The result
a

We

tions.

another year of

would be

are

international

fail

during this coming session.

10% of the United States' oil de¬
mands.

active role in import restric¬

more

opinion

would

measure

ments

mittee.

taKes

government

an

Trade

Agree^
Act, limiting oil imports to

mendations

the

As

.

to

contained

new

of

the

industry

gas

the

the

to

introduction

March 2 of

on

amendment

invest¬

an

in the

by 17 Senators

to

to
es-

increasing
Congressional
with regard
to imports

reflected

was

otic.

dustry is that the Harris-Fulbright

recommendations

Commission

consumer

returning

House,

such

on

The

public, par¬
ticularly in Eastern markets, is
more
price-conscious than patri¬

and free

that

obviously anxious

as

national defense.

to

concern

The consuming

ment.

sion

jurisdiction of the Federal Power

1955, safeguards the

of

return

particularly

program,

115

imports of strategic materials

investments

wun

are

a

in the so-called

Fleming Commis¬
Report on Energy Supplies
and Resources Policy.
However,
in
providing safeguards for the
consumer, it deals not only with

June 6,

on

aspects

necessitate

is

competitive

Basically, H. R. 6645 carries out

6645, introduced by Con¬

Companies
abroad
make

foreign nation.
Subject to the above, the bill right of the carriers to sell their
recognizes that production, gath¬ own or subsidiaries' gas at fair
market field prices.
ering,
processing, treating and
Should the Senate make changes
compressing natural gas and the
in the Fulbright Bill which would
sale and
delivery thereof in or

Summary
gressman

would

competition.
Of
particular interest
in
the
provisions of the Harris Bill is the

state and any

sential

production. The
importing companies, caught be¬
tween the rising costs of finding
domestic oil and the competitive
products market, naturally turn to
low cost foreign oil.
,

Power

operate
in the wholesome
climate of true supply and de¬

extending its jurisdiction to trans¬

ment

must sell present

be

will

risk-taking enterprise and should

row

still

seller.

new

ju¬

Committee

the

the

not be subjected to Federal
price
fixing utility regulation. The bill
also recognizes that natural
gas
produced by the interstate natural
gas
transmission
companies
or

nays.

will

they relate advance approval of prices to be
paid, the distributing companies
future prices.

existing
The

domestic producers, if they are to
continue
to
find
new
reserves,

as

was passed by the House
July 28, 1955, by the very nar¬

ris Bill
on

the

existing and
In determining the reasonable future
contracts, which formerly
market- price, the Commission is were
subjected
to
"interpreta¬
required to consider, among other tion," are now spelled out. Cer¬
things, whether the price has been tainly the Carriers, under this
competitively arrived at, the con¬ law, would know exactly where
tract's effect on assurance of
By the same token,
sup¬ they stand.
ply and the reasonableness of the under the privilege of securing

The Har¬

a very

close vote.

the

if

becomes

petitive pricing.
Coast-plus pric¬
ing could continue to be a threat,
but could never be forced on a

consider

transmission company proposes to

to

as the
an Amendment to the

bitter and the Bill

price

contract provisions

1955,^ of H. R. 6645, known

Harris Bill,

the

to

producers

gas

that

Bill

presumably
receive
fair
treat¬
ment, within the confines of com¬

necessity, the Commis¬
required

is

of

by Congressman
Arkansas, on June 6,

of

of

seen

Fulbright

-

indirectly under Federal
Commission control, but

applications
public conven¬

sion

Representatives
Harris

certificates

law,

or

upon

in

resulted

the

in

apply

Public

venience and Necessity.
The impact of this decision
the

(3) In passing

Bill], it will be
Harris

spe¬

cific amounts at definite times
tax escalator clauses.

companies, if the latter transport
it

Escalator clauses do

price increases in

(2637)

SCRANTON

page

114

The Commercial and Financial Chronicle

will

ODM

Continued from page

113

The Canadian petroleum

imports and their
On Sept. 13, the

visory committee recommendation
with respect to crude oil is to be

their

past

import programs.
ODM

announced

that

achieved."

infor¬

this

mation showed that total imports
excessive and

were

In

that the gov¬

the balance of 1955.
was

that

31

the

Cabinet

to

down

With

respect

In

and

Oct.

residual

again

on

planned im¬

of

the basis of information
With

the

Canadian

of

exception

and

these

areas

do

rise

of

further

reduce

one

meeting,
the

of

spokes¬

a

major

pro¬

ap¬

ing

that a stiffen¬
the part of the

appear
on

This situation has

the Near East.

prevailed

several

for

continues

to

influence

and

years

exercise

sobering

a

Canadian oil and.gas

on

1842

SERVICE

TO

19 5 5

INVESTORS

records

forth.

Canada

its

answer

The

Canadian

always

may

new1

get

production? No
has yet come
eastern

be

sea-'

supplied

from sources other than the

over¬

though shut-in
capacity has gone from ri 0,000 bar¬
rels per day in 1951 to some 250,-

land haul from

Provinces

is still sparsely settled and growth
in
demand
cannot be outstand-v

even

it

and

have

felt

is

continue

to

been

that

be

satisfactory

reserves

found

oped more cheaply in Canada than
in
„

the United States.

inces.

Prairie Prov¬

the

To reach Pacific

Eastern

Canada

demand

products

for

barrels

Canadian

total

day.

almost"'equal

is

day

per

per

165,000

of

However, as

result of im¬

a

ports into Eastern Canada, 44%
of producing capacity, or 250,000
barrels per day, is currently shut
in

for

Canada is

lack of market.

blessed

lor

conditions

petroieum accumu¬

with

but is plagued

lation,

geologic

favorable

with

mar¬

keting difficulties stemming from
problems of geography and trans¬
portation economics,r,r No adequate
been submitted.

applies

has

situation

this

solution'to

yet

In part, this con¬

to

natural

gas

as

oil.

as

marketing problems have
the effect of extending toward the
economic limit the period of reali¬
zation of both capital and profit
Reflecting

wells.

successful

this

cloud, in part, Canadian oil
securities have not par¬

gas

securities

characterized

Canadian

in

occurred

stocks

mar¬

The peak of in¬

generally.

terest

cheaper

for

accounts

U.

and

oil

S.

to

of the

refineries.

crude

move

to

Montreal by tanker than by pipe¬
line
from
landlocked
Alberta.

is

That

why

ports post¬

day this

per

tral

The north

cen¬

United States
possible

the

of

part

to be the best new

market,

but

southward

any

ex¬

tension will encounter tough com¬

resistance from the
U. S. oil industry, which is itself

petition

and

disturbed by excess

producing

ca¬

Over the long pull, U. S.
demand may increase faster than
imported reserves or deliverability, in which

Canada

280,000 barrels

year

pacity.

Canadian

event

producers would

with nearly an equivalent amount

probably find a welcome market

of shut-in crude

in

deliverability.

the increase in

Since

is

Canadian

the Northern United States.
Canadian gas

is in even greater

since current
is
negligible.

than oil
daily,, production

outstrip

surplus

in domestic demand,
problem would appear to be
hopeless. Yet, since 1951 Canadian

Proven

reserves

the

expected

to

growth

the

domestic producers have increased
their

share of

31%

pie from

the

total

demand-

to 55%.

The

new

Socony and Shell refineries in the
U. S. Pacific Northwest will be

by

served

These

on

is

ingly significant.
Seems

bulk of the nation's 40

to

will

devel¬

and

It

kets

OF

will
for

board

barrels

has
YEARS

Where
markets

a

adequate

in the Prairie Provinces of 580,000

ticipated in the prosperity which
CONTINUOUS

to

long-range program of developing
economical reserves.
It is no sur¬

producing capacity, demand and is the location

oil

Current

and

113

businesses.

•

nearly 70% of Canada's petroleum

securities.

well

attitude

indus¬

petroleum requirements,are

dition

It would

1955,

tion's

itself, by cooperation

and
individual
sacrifice, attempt to
solve the import problem, rather
than bring the Government into
the picture.

their

period April 1-Dec. 31,

exist¬

of

be geared

try continues to find itself in the
ings lower than the U. S. Midquixotic position of developing a 000 barrels per day at present. Continent for similar crudes are'
surplus of crude reserves, while: Excluding payout considerations, required "and the demand potential
at the same time 45% of the, na¬ exploratory results in the Prairie there is limited.
Central Canada

urged strongly that the in¬

dustry

planned imports of crude oil for
the

im¬

inferred

under

action

same

for

man

ducers

preciably above present levels,
importers of oil from other areas
should

the

he

cooperation,

At this

Venezuelan

not

to

ing law.

origin, and assuming that imports
from

such

Government

available.

"(B)
oil

appealing

porters to make voluntary cuts to
achieve the limits set by the Cab¬
inet Committee.
In the absence

with the committee recommenda¬

now

Inde¬

the

before

rector of ODM said that his office

ports for the period April 1-Dec.
31, 1955, appear to be in accord

tions,

speech

a

pendent Petroleum Association of
America on Oct. 31, 1955, the Di¬

Committee

to

by

mittee.

was

"(A)

the limits
the Cabinet Com¬

if they are within

see

laid

had concluded that:

fuel oils, actual

be sent to the prin¬

importing
companies
for
"periodic" and "regular" reports
to the ODM on planned imports,

After this in¬

on

of

days a

10

cipal

evaluated, the Di¬

rector of ODM announced

that within

request will

importing companies failed to cor¬
rect existing conditions.
At this stage the Office of De¬
fense Mobilization again request¬
ed the importing companies to re¬
port their planned
imports for
formation

said

competitive

finding must

new

imported from the Caribbean and

-

Director

the

addition,

ODM

have to act if the

ernment would

-

most

Oil

prise, therefore, that drilling ac¬
tivity in Canada continues to set

restrictions.

and

Canadian Oil and Gas Report

by approximately 7%, 'if a sub¬
stantial conformity with the ad¬

the importing

upon

or

ment controls

companies to furnish information

called

the

force

real job of selfthere will be a move
a

in the direction of direct Govern¬

Report of IBA Oil and Natural
Gas Securities Committee
ODM

either

now

industry to do

policing,

on

Thursday, December 15,1953

.

.

(2438)

114

expanded Transthe Cana¬

an

mountain Pipeline and
dian
over

producer
70%

within

of

five

will likely
Canadian

It

years.

absorb
demand

interest¬

is

ing, in analyzing the recent auc¬
tions of proven leases at Pembina,
that the

winning bids apparently
improved rates of pro¬

assumed

with

contrast

by normal present worth
calculations.

discount

feet, in

trillion

215

feet in the U. S.

cubic

Several immense

producing regions in Alberta

gas

been

characteristics

have

which

found

have

Columbia

British

and

somewhat similar to our own San
Juan

and

it

areas.
They
partially explored

Hugoton

and

have been only
seems

certainty

a

that

be multiplied
many
times once the economic
incentives are present.
The ex¬

proven

reserves can

port of natural gas from Alberta
has

been

Fortunately,

question.
seems

entangled

politically

a

duction in order to justify the in¬
vestment

cubic

trillion

15

mately

approxi¬

are

reserves

it

reality

economic

that

no^

has

simultaneously

during mid-1952. Since then, how¬
ever, U. S. oil securities have con¬
tinued

MOYER & CO.
*

PHIL A.-B ALT. STOCK EXCHANGE

"C'

NEW

YORK

AMERICAN

STOCK EXCHANGE"

STOCK

EXCHANGE

.

.

than

(ASSOC.)

harmony

mid-1952, whereas,

Canadian

of

lower.

1500 Walnut St.

in

improve

is

certain

10%

in recent years.
This rate of growth more closely
approximates the dynamic experi¬
ence of Western Europe than the

DEALERS

Corporate and Municipal Securities
Stocks

Ohio

—

—

4%

Exchange

American Stock

Exchange (Associate)

United

trend,

.

.

Branches:

Wire

to

Clark,

Wheeling,

W.

Dodge
Va.;

&

in

anticipate

FIRST NATIONAL BANK
BUILDING, PITTSBURGH 22, PA.
Telephone COurt 1-7300
*
'
Teletype PG 566
Private

Members:
New York Stock Exchange

American Stock Exchange
■

{

..

..:

-

Philadelphia-Baltimore Stock Exchange

1401 Walnut

Street, Philadelphia 2, Pa,

•

LOcust 8-1500

Petroleum

States.

Canada

New York City

Lebanon

Atlantic City

Yin eland

from

spurted

present and petroleum economists
Pittsburgh Stock-Exchange
Wheeling Stock Exchange

■

Newburger &*Compavy

400,000 barrels per day in 1951 to
over
600,000 barrels per day at

COMPANY

1891

Members
New York Stock

Largest Trading Area

increase recorded

annum

per

demand

Established

Third

annum

per

the

in

West Virginia

A. E. MASTEN &

Effective Distribution in the Nation's

oils

Canadian

selective

Demand for petroleum products
in Canada has increased 8%
to

Pennsylvania

BROKERS

however, from

ably these 1952 prices had been
subject to excessive enthusiasm
and speculation.

Bank

•

30%

selling materially higher than
their 1952 peaks and unquestion¬

.

DISTRIBUTORS

index

oil

are

DISTRIBUTORS

•

the extreme lows of 1953. Further,

KI 5-0340

-

-

index

an

stocks

oil

Canadian

The

has improved 25%,

Phila. 2, Pa.

UNDERWRITERS

UNDERWRITERS

lying values and earning power;
whereas, most Canadian oil stocks
are
still selling markedly below
their 1952 highs. An index of U. S.
oil stocks is currently 35% higher

MEMBERS
'

to

the increase cf their under¬

with

Co.,

Butler,

New York

Pa.;

Cify v >:

Johnstown,

*

Pa.

*

of this
daily demand

continuation

a

indicating

a

800,000 barrels by 1960.
impressive as this growth trend
it is not in itself suf¬
ficient to
permit an expanding
and
profitable producing indus¬

of

over

As

Call

JANNEY for—

appears,

Bank and Insurance Stocks

try.
Crude

in

output

Canada

was

limited

to 20,000 barrels per day
prior to completion of the Inter-

provincial
to

THOMAS & COMPANY
ALCOA

BUILDING

the

production
to

19,

PA.

Lakes.

has

during

1955.

estimate

of

a

three

which

mately

36

States.

Municipal and Corporate




Securities

6,500

billion

with
in

reserves

crystal

may

City-County-State-Authority Issues

gazers

suggest

ultimately be found

New York Telephone

WOrth 4-2140
Bell Teletype System

PH 80

^

equal in size to those in the United
States.
12

That would

mean

Oil

of

three

exploration

billion

is

one

JANNEY & CO.
1529 Walnut Street,

Philadelphia 2

Rlttenhouse 6-7700

reserves

times greater than the current

estimate

Guaranteed Rails

United

confident

only the surface of the na¬
tion's reservoirs has been scratched
some

Common and Preferred Shares

barrels,

that

and

Utilities

aporoxi-

the

are

Industrials Rails

oil

reserve

billion

Producers

Pennsylvania Tax Free

per

proven

compares

markets

then

steadily
day

barrels

Canada's

support

Alberta

Since

increased

300,000

over

wells

PITTSBURGH

Pipeline from

Great

tracing

barrels.
of

the

Since

1907—Underwriters, Distributors, Dealers, Brokers
&

The Commercial and Financial
Chronicle

.

.

.

Thursday, December 15,1955
(2639)

at

last

pierced through the haze
political Dride and confusion.

of

prospects for

increasing petroleum

ity would have to be done

reserves, but whose economic fu-

,

"heat-pump"

West Coast Transmission's
project to bring gas to the Pacific

the

on

principle,' which

Allen J. Nix

is

eluded.

A decision from the

eral

Power

even

be

Commission

forthcoming

might

before

the

°onff-hwaited ^es^'Coast

the

Threat of Atomic Energy
*
Competitor

^ansm^ssion

project
ought
to
substantially clear the atmosnhere
and

will

cents

increment

restricted

in

the

the

canacitv

United

a

line's

haf

new

taught

nroduc'

gas

area' results in growth pxceed

ing exnectaUons
of

confidence

The

cannot

vet

in^ Lnnection

pressed

proposed

$375

deerpe

^me

be

ex-

with

million

the

Toronto
^
and

thrnimh

7'n7

consumers of Toronto
Montreal need natural gas

and

^

en9rgy as competition were started by«certain of the
leading com-

•

1

panjes in the petroleum industry,
and this research is

+

and
•

J

rxdHont

i

are

j

becoming

.-I

uii + h

patient

4Vi/-»

with

im-

-t

T

rlolnzo

the

pp t
.
TVioiy

delays.

1 heir

Pressure is likely to result
compromise plan
U. S. communities

St

to

in a

involving

the

oLMinneapolis
east,

Paul, Chicago and points

Due

,

to

continuing.

severai

factors, notably
the XXX£jXX cost of
l-"v. high
building a reactor,
UlJ.Ui.11^
and the weight and
safety factor
VVOU

-

V/JL

KJ

CA

..

X \_CAV_ C\_/X J

..

sbield necessary for

even

a

smail

unib_tlie current consensus
is that atomic fuel will first be

This

put to widest

authorities of

utility industry, and that for some
indeterminate period, this form of

project will require the approval of the FPC and Canadian
ect.

integrated proj-

an

To date the FPC

across-the-border

attitude

s

hook-ups

on

has

its

Western

unduly

Canada that it would be
pessimistic to feel that a

^project

which

is

grounded

in

sound economics cannot
surmount
the political hurdles of..

Toronto

Washington.

;An

adequate solution of Cana-

dian oil and gas
marketing problems seems to rest on the

accept-

ance

by

Canada

the

as

ply.

It

such

a

policy

a

is

United

States

supplementary
conjectural

continental

of

sup-

of

natural

the'United

icy, since
accepted
de

Venezuela

facto

favored

as

pol-

a

States

has

jure

and

de

interested

an

party in

demand

Yet,

gas.

precedence exists for such

and

oil' supply-

our

projections.

This

was

highlighted only last month by
Fleming's report on limitation

Dr.
of

Near

East

imports.

panding
fuel

economy
needs in the

make

and

States

oil

supply

from Canada desirable in the not
too

distant

sooner

Of

in the

course,

could

an

future,
case

and

even

of natural

gas.

international crisis

dramatically^accelerate recby the United States of

ogmtion

>tnis fact.

>

.

Security buyers will have

to de-

termine the
of

an

mately

ultimate significance
industry with appealing

than

confidently believed,
that atomic power ultibecome fully competi-

can

tive.

Waddell Reed Branch

the

transportation
3%

and

0f the total

electric
sidual

plants.

power

fuel

heating;

is used

oil

only

fuel in

as

Unless

should

be

re-

priced

completely out of the market, it
unlikely that atomic energy

—

1

A

JT

Bostwick

be

built

field of electric

nuclear

the

fuel

both

a

NEW
v

;

offers serious threat to

and

of

nuclear

in the less

this is

clear

Butler«

and

is

loss

ever

tend

so

to

offset

sustained

the

to

transportation

field

and

.

2

J J

V

r

B.f. Fagenson Co.

with
New

Madison

Ex-

Avenue

New

York

l<y*

PHTT ADFIPHIA

Philadelphia, Pa
pa.

F

L

—

L,-£'

&

C°"

& Go. have^ opened a
branch office in ^e Philadelphia

National

mem"

formed

be

offices
York

at

52

City.

Bertram

F.

of

as

Broadr

Partners

Bank

Building, under
of Eugene C.

management

HemphllU'
With Gen. Am. & Canadian
(special to the financial chronicle)

SAN FRANCISCO, Calif.—WenA> Hutchinson

dell

is

now

con-

nected with General American &
I

'

Fagenson, ^Canadian

.

:

-

■

In

Securities,

.,
^

.

Exchange

general

'

Montgomery Street. Mr. Hutchin-

.

Dorothy

and

partner,

G.

Wick-

was formerly
ior i
y

son

with Hooker &
^

wire

iimited partner.

^

Fay and Jamieson & Co.

Underwriters and Distributors
PENNSYLVANIA

agree,

the

Rather,

which both

GENERAL

AND

REVENUE

oil

BONDS

MUNICIPAL

CORPORATE

BONDS

SECURITIES

AUTHORITY

BONDS

and
nu-

and oil industry
it
appears
that
will supplement,

NATURAL

MUNICIPAL

MARKET

Aspden, Robinson & Co.
Members Philadelphia-Baltimore Stock Exchange

1421 CHESTNUT STREET, PHILADELPHIA 2

GAS

York

COrtlandt

Phone

Teletype

Philadelphia Phona

PH

Rlttenhouse 6-8189

7-6814

313

SECURITIES COMMITTEE

Chairman

First Southwest Co., Dallas

H.

Lawrence

Bogert, Jr.

Eastman, Dillon & Co.

Rambo, Close & Kerner

New York

Incorporated

Frederic II. Brandi

Dillon, Read & Co. Inc.,
*

New York

Milton C. Brittain

Shearson, Hammill & Co.

Corporate Bonds and Stocks

New York

Municipal Bonds

J. Douglas Casey

.•

Authority Bonds

A. C. Allyn and

Company,
Incorporated, Chicago

what-

other

of

house

fuel, considering the

land

the

& Dominick

1518 Locust St., Philadelphia 2, Pa.

New York

space

high

tremendous

Earl G. Fridley

Fridley, Hess & Frederking
Houston

re-

shield

W. Fenton

weight and the element of safety

Johnston

Smith, Barney & Co.

involved.

New York

The ,automobile

jj^ely

appears

user

of

to

be

nuclear

energy, since both cost and dimension of an atomic
power plant

this small

x

jan.

the

William C. Jackson, Jr.,

the

it does not seem that
atomic energy is a threat to oil as

ieast

V

u

will

New

re¬

heating,

cost,

_

of

,,

Bayard Dominick II

respect

actor

on

energy

Dominick

xn

ggW*

the

>

Fagenson

Respectfully submitted,

to

directions.

a

point

OIL AND

of the

in

F'

energy sources,

world, this form of power may
well promote new uses for petroleum

a

scientists

atomic

especially

areas

B*

member

Rothschild Branch in Phila.

urA

•

To Form

8.

■

Put-

—
„

Dec.

RrnaSnn^ Rothschild

o

rather than supplant, conventional

increased

energy,

developed

industry.

gas

leaders

productivity and a rising standard
of living could result from the
use

w

?v* ®
of
DndW
W
toe management of Dudley W.

reactors and to the heavy shield
requirements! but until and unless such improvements are realized, there is no evidence that
atomic energy as a source of pow-

generation,
become, not a

that

LONDON, Conn.
' „noj

rAQUO

may provide the answer
to cost factors in the building of

"burden-sharer."

extent

^

w

of

as

Broad* Street>
™d 25 Broad Street^
-

New Putnam Branch

-

formed.

vances

diffi-

in

-

rt-W

...•<•

obtain. Most

that

—

W

The extreme range of such a plane
would, of course, have obvious
military advantages.
Conceivably, technological ad-

power

energy will

competitor, but
To

be

L.

change,

4-

.

augment power requirements, and
very
often
in
isolated
regions

where daily conventional

is

John

bers of the New York Stock Ex-

powered

t*tA1

~

Building.
Manager.

being

is^

atomic
/I

7

generation
would
be
built
to
replace existing facilities.
Rather,
would

an

-

is

such facilities

on

Grant

be

Leopold,

r

airplane by the Air Force. Present
obstacles of size and weight, particularly in view of the disproportionate space used by the power
plant, would make such a plane
unattractive for .commercial use.

er

Most of the oil consumed in the
United States today is used for

ex-

growing

United

supplemental

a

The

costly

It is

means.

cult and expensive to
industry leaders feel

gas

electric

conventional

and

oil

view
of
our
intense
domestic conflict on the
importation
of
foreign oil as well as
clarification of the area of Federal

regulations

by

quirements would

in

the

more

whether

can be evolved in the years

ahead

be

generated

1

integrated
project would be a major accomplishment. However, this line is
so essential to the
people of Eastern Canada and the
producers of

and

^ba^

rather than liberal, however,
approval of an

j1-*
and

.

will

power

in

use

conducted

will

Partners will be William B. Mann,
Ralph R. Diamand and James M.

PITTSBURGH, Pa.-Waddell &
Reed, Inc. have a branch office in

in extremely large
ships, (of which there will always
be a very few) and fighting ships,

may Play- Thus, as far back as of rail electrification.
a decade ago, studies of atomic v Experimental
work

urmnniilated

nn

Underwood, Neuhaus & Co.,
Incorporated, Houston

most

suggests

Mann, Diamond & Co., rpembers
of the New York Stock
Exchange,

Milton R. Underwood

!

sparsely industrialized terri-

service
j

mile^lw. A?herta

2 5nn

Sanders & Newson, Dallas

use

Trans-Ca-

ghfeei^d^twTTin^was^t^stretch
some

vessels

new

certainly of Superman, as a mean- - Atomic
powered
locomotives
in§tul personality in this Era. To are a definite,.although not immost of us> the term commands mediate possibility. Again, berespect and a measure of wonder, cause of the weight and safety
if hot disbelief. To leaders in the factors* involved, the self - confield of suPPlying energy derived tained unit is not presently attracfrom other sources, it has de- tive. A more practical, though at

FvneHpnra

States

that tieing into

ing

from

to

plausible

:

the imagination of the young to
*he P°Ant 5f„ri v1ali^g Davy which require longer operational
Crockett and Hopalong Cassidy— ranges.

likely have an effect
bullish than the dollars and

more

as a

The words "Atomic Energy" stir

To Be Formed in NYC

*

Jesse A,^Sanders, Jr.

and Perhaps this type of perform- way. Again, conversion of existance
adequately reflects the ing vessels to atomic power seems
mixed environment.
impractical. Also, the economics

Fed-

Mann, Diamand & Co.

Riter & Co., New York

ture rests in tbe successful formu- both expensive and inefficient,
Nation of a continental oil and gds
Nuclear power for ocean-going
Coast and
augment the supply Policy
with the United States, vessels is, of course, a distinct posfrom Pacific Northwest
Pipeline °ver the past year an index of sibility. The successful launching
will likely be
successfully con- Canadian oils has improved 10% of the U.S.S. Nautilus points the

115

seems

out of the

Francis Kernan

White, Weld & Co., New York

DEALERS

Joseph IIvKing
Union Securities

ques-

tion. fepace heating -with electric-

'
-

<<'*.?''

AND

UNDERWRITERS

VA**-# 'fa.*

Corp.

/v

<

^

,

Obligations of th*

New York

COMMONWEALTH OF PENNSYLVANIA

and its Political Subdivisions
/

f

Distributors, T ealers, Underwriters

DeHaven & Townsend, Crouter & Bodine
YORK

STOCK

EXCHANGE

STOCK

',r'v

*

BONDS

SCHOOL AUTHORITIES

TURNPIKE, WATER AND SEWER ISSUES

Packard Bldg.,

i

AMERICAN

,;■#;;>£

Spocktlbfi In>T

SCHAFFER, NECKER & CO

1874

MEMBERS
NEW

>

.

v

PENNSYLVANIA
k

r.'i

'

CITY OF PHILADELPHIA

Corporate & Municipal Issues

ESTABLISHED

x

,

}

:

LOcust 7-3646

•

Philadelphia 2
Teletype PH 864

EXCHANGE

PHILADELPHIA-BALTIMORE STOCK EXCHANGE

1500
NEW YORK




CHESTNUT

BOSTON

STREET

WILKES-BARRE, PA.
..

>.>&
^

PHILADELPHIA

2

Local

Telephone CHICAGO

Numbers from

CINCINNATI

these cities.

CLEVELAND

STAMFORD, CONN.

Zenith 4245
Enterprise 6289
—Enterprise 7-3646 PITTSBURGH —
Zenith 0821
Enterprise 6289 ST. LOUIS
— Enterprise 0040
JtJI i
—

—

Enterprise 1370 MINNEAPOLIS—

Enterprise 5131 NEW YORK

—

—

,—Ult

-

Volume 182

(2640)

116

of earnings and dividends as

ness

Number 5490

Continued

jrom

outlined above.

Being thus some¬
wanting in investment qual¬

what

Railroad Securities

ity,

even

of

prospective 614% rate
might
not have
too

a

return

compelling

McKEEVER

By GERALD D.

St. Louis-San Francisco
Favorable

overlooked

stock.

of

to the $2

for

able

is

with

line

for

Dividends

1955.

of the

refunded

not

the

of
share for those

common

respectively.

available

1954

of

the

to

share, partly

common

is¬

bonds

availability

per

years

the

Frisco, as in the case of all
reorganized
roads
which

other
have

the stocks

on

the

in

The

re¬

lower

level

$2.46

per

as a result
of
business

pursuant to reorganization,
leaving them subject to the
terms
of the
reorganization in¬
dentures, are
declared for any
year
on
the basis of available
earnings for the preceding calen¬

generally, but very largely due to
the heavy movement of grain and
feed to drought-stricken areas at
the 50%
emergency rates which
were
unprofitable except as to
future good will in the territory

dar year.

thus

This

possibly should be explained
that the term "available earnings"
is also an outgrowth of the ICC
pattern
of
reorganization
and
means
that part of net
income
remaining
after
providing
for
such
sinking funds and capital
fund as are set up in the reorgani¬
zation

indenture.

In

the

been

guide to pos¬
sible future dividend policy. Fol¬
lowing the pattern that has been

ranged

between

7

cents per common

cents

and

15

share in recent

but it will be close to the
higher and latter figure this year.
years,

it, is

as

a

believed

dividend

1956

that

should

rate

be

the
at

least $2.00 and this would produce
rate

a

the

the

Frisco, the difference between
net earnings and available earn¬
ings is relatively small, having

presented

outlined,

of

case

much

background as to
earnings and dividend record has

It

of

of

return

current

6lA%

over

price

at

of

Frisco

i

in

Due

a

highly

leveraged stock and is thus sensi¬
tive

fluctuations

to

revenues

been

and

in

the

This has

expenses.

evidenced

in

the

road's

unsteadi-

the

over

against

has

Frisco

Tennessee & North¬

average

gain

4.7%

for

it

connects

at

Central

the

Birmingham, Ala.
Georgia provides

of

direct

most

Frisco

The

has

been

of

stocks

mon

Georgia

the

Central

York

American

Stock

6, the Frisco
petitioned the ICC for authority to

acquire majority stock control of
the Central of Georgia. The peti¬
tion stated that as of last Nov. 25,
the Frisco owned 159,197 of the
337,230

shares

common

Central

investment
of
petition
also

an

The

stated that while
or

is intended, the

merger

would

ciation

consolidation

no

Francisco

Los

Angeles

NEW
40

YORK

WALL

4

LOS

STREET

VAN

5

complement
than

compete.

Frisco

extends

55

Stock

BEVERLY

ANGELES

NORTH

14

JOSE
FIRST

CORRESPONDENT

J

}

HONOLULU, T. H.

GSS) <2®

:

DAVID

Jr.,

GORDON

New York

Blunt

John

Chicago

Journal,

York

New

WHITFIELD

John Nuveen &

Lee

LEE

CARTER,

Jr.,
&

Courts

A.

&

New

D.

westward

Wichita

to

and

CHAPMAN,

Allen

MELVILLE

S.

CHILDS,

North

P.*

San

T.

C.

F.

Childs

C.

A.

W.

ARTHUR

C.

WILLIAM

W.

Mason,

H.

C.

CLARK,

Douglas

M.

Bank,

Cleveland

P.

J.

RAYMOND

Van

V.*

Ingen & Co., Chicago

Pohl & Co.,

;

&

Bankers Bond Co.,

t

Louisville

COOK, A. IIALSEY

McEvoy,

New

First

York

COOK,

National

|

City Bank,

New York

HAROLD II.

j

Spencer Trask & Co., New York
CORRINGTON, JOHN

W.

Paine,

Clark, Landstreet & Kirkpatrick,

W.

j

Webber, Jackson & Curtis,

[

Chicago

Nashville

COSTIGAN,
Mr.

&

increase

Another

factor

in

Edward

Mrs.

D.

EDWARD J.
Jones

&

Co.,

St. Louis

Dealers in Industrial & Public

Utility

gain has been

of

V)

or more

Wires
,

^

MANILA, P. I.

gross

the extension

in the past two

years

to accommodate the

Active Retail Outlets

Dbnault'

longer

sidings
that

be

can

moved

in

ESTABLISHED

under

diesel power, while another factor
has been the addition of classifica¬
tion facilities

^

<£^) (£^>

in

Stocks & Bonds

bringing about

STREET

~

OFFICES

57%

a

yards at Spring¬

Russ

1931

Building, San Francisco 4
Bell System Teletype SF 272

Telephone EXbrook 2-7484

field and Kansas City, Mo. and at

Rosedale,

Kansas.

A

new

$9V2

million classification yard is to be
constructed

at

Capleville

near

Memphis, Tenn., financed by part
of the $19 million bond issue sold
last

August, and the West Tulsa,

Okla.

DEALERS IN
OVER THE COUNTER

is

yard

to be

expanded

potential

"kicker"

that

and to

mon

5%

UNDERWRITERS and DISTRIBUTORS
♦

lesser

a

preferred
bonds

come

that

com¬

degree to the
41/2% in¬

the

and

convertible

are

over 1,350,000 acres in the
states,
have
not
produced
anything tangible to date as far

two

155

MONTGOMERY

SAN FRANCISCO

STREET

♦

Telephone
Bell

Teletypes




—

—

as

is

known, either
oil.

or

EXbrook 2-8515

SF 61, SF 62 & SF 621

.

BANK STOCKS

to

cause

year

suspicion,
at

least

certain
ago

a

there

if not

two

is

more,

to

groups

sections.

Wichita

About

Falls,

a

Texas

group leased 100,000 acres and last
June the Tide Water Associated
Oil

Co.

leased

uranium
safe

to

250,000
exploration.

say

acres

It

that not too

for

seems

much

is

being represented in the price of
Frisco

common

for

show" possibilities."

WEST COAST SECURITIES

to uranium

as

Nevertheless

sufficient
lease

(4)

INSURANCE STOCKS

into the common, the New Mexico
& Arizona Land properties em¬

bracing

J. S. Strauss & Co.

Wholesale and Retail Distributor

lends

speculative flavor to Frisco

SECURITIES

at

the cost of about $5V2 million.
As to the previously mentioned

these
*

"side
*

WALTER C. GOREY CO.
Russ

Building,

YUkon 6-2332

•/{

Cincinnati

CONWAY, POWHATAN M.*

Wainwright & Co., Boston

♦Denotes

\
Co., Portland

CONNERS, CHARLES F.

Lynchburg

FORRESTER A.

HAROLD

National

Chicago

J.
&

CHARLES

CONDON,

Pressprich & Co., New York

Winslow,

Collins

McDougal & Condon, Chicago

H.

CLARK, Jr., CHARLES A.

CLARK,

WILLIAM
J.

CONDON, JOSEPH

CLAPP, Jr., JOHN J.*
R.

,

L.

CHARLES

Homer &

Daytona Beach

Codings & Co., Philadelphia

Central

A.*

St. Louis

B.

Scott,

II.

Nelson O'Rourke, Inc.,

COLYER,

Pressprich & Co., New York

CHURCHILL,

Securities Company,

American

MARION

William

Reinholdt & Gardner,

R.

,

Julien Collins & Company,

Varnedoe, Chisholm & Co., Savannah

CHRISTOPHER,

X.

V.*

Francisco

COLLINS,

CHRISTOPHEL,

LEWIS

COLLINS, JULIEN II.

Co., Chicago

&

FRANK

York

New

FRANCIS

COLLINGS, Jr., CLIFFORD C.*

NEWELL*

CHISHOLM,

Co.,

Collier, Norris & Quinlan, Montreal

New York

Co., New York

&

j

COLLIER, W. T. K.

THOMAS C.*

F.

&

COLEMAN,

WILLIAM B.

Smithers

W.*

Co., New York

Gregory & Sons, New York

COLEY,

First Boston Corporation,

F.

,

COLEMAN, C. MERRITT

Fulton, Reid & Co., Cleveland

CHERRY,

&

COLEMAN,

C.

R.

Ripley & Co., New York

HENRY

Cohu

Chemical Corn Exchange Bank, New York

CIIAPPELL,

Chicago

York

COIIU,

Chicago

Co.,

CHAMBERLAIN,

Co.,

Schoellkopf, Hutton & Pomeroy,

Co., Newark

IIUGII

&

i

•

Clarke &

COGGESHALL, GEORGE K.

Co., Atlanta

Allyn

W.

Harriman

Co., Chicago

JAMES D.

C.

'

Rambo, Close & Kerner, Philadelphia

CASEY, DOUGLAS
A. C. Allyn & Co., Chicago
CASEY,

V

HARRISON

CLUETT, W. SCOTT

W.*

Carroll

W.

f
' ^1

Co., Miami Beach

&

CLOSE, L. PAUL*

Jacquelin, New York

CARR, FRANK C.*

CARROLL,

"

CLAYTON, C. COMSTOCK
Clayton Securities Corporation, Boston

PATRICK

Street

&

*

CLARKE, JOHN W.

A.

Corporation,

CARHART, Jr., H.
Carlisle

Chicago
1

Johnson, Lane, Space & Co., Atlanta

& Co., Toronto

Higginson

CARBERRY,"

j

.

Simmons,

HAGOOI)

CLARKE,

IRVING II.*

CAPEK, CHARLES

Wall

Atwill

York

New

Co.,

Bell, Gouinlock

Lee

1

Johnson, Lane, Space & Co., Atlanta
&

CAMPBELL,

&

[

.

E.*

Ltd., New York

CLARKE, Jr., IIAGOOD

GORDON

Hallgarten

Ellis

CLARKE,

Association,

Washington
CAMERON,

Bullock

CLARK, ROBERT M.*

L.»

Bankers

•

ROBERT

Calvin

H.*

First of Michigan Corporation,

Investment

Coy

ton-miles moved per freight train
hour
in
the
1946-54
period.

13

HILLS

Private

CLARK,

Goldman, Sachs & Co., New York
CALLAWAY,

& Trust

Bank

Winston-Salem

W.

City on another. Despite its
the "Frisco" never got to

trains

Direct

thence

City,

enjoyed

BUILDING

275 NORTH CANON DRIVE

|

the Gulf

on

worthy gains in operating effi¬
ciency. Largely because of dieselization, which
has
been
100%
complete since 1952, the road has

Exchange

Exchange

this

J

The
from

Birmingham, Memphis and St.
and

Wachovia

Walston & Co., New York

Frisco.

Stock

NUYS

SAN

STREET

both
each

Along with its growth in busi¬
the Frisco achieved note¬

San

FRANCISCO

asso¬

strengthen

which
rather

CLARK, JOHN C.*

CALDWELL, DONALD
CALLAGHAN, JOHN

ness,

Exchange

MONTGOMERY

the

of

of Georgia and 81,512 of
shares of the preferred,

representing
$15,289,688.

homa

Secondary Offerings

Stock
Exchange
(Associate)

SAN
460

of

years

Dec.

on

Ells¬
worth, Kansas, on one branch and
to Dallas, Fort Worth and other
Texas points via Tulsa and Okla¬

MEMBERS
New

com¬

the past two

over

and

so

Kansas

Industrial Brokers

—

steadily

acquiring the preferred and

or

30

page

CASSELL, EUGENE II.*
C. F. Cassell & Co., Charlottesville

port of Savannah, Ga.

name,

Underwriters

Bir¬

from

route

mingham to the important Atlantic

to

Investment Dealers and Brokers

i

I.
is

the Central of Georgia with which
The

Louis

Distributors of Primary and

Class

expected from its affiliation with

5,091-mile

CO.

as

benefit

further

Considerable

Mobile and Pensacola

v

been

not

as

1947-49

a

The Commercial and Financial Chronicle

In Attendance at IBA Convention

CALVERT,

the net gain in revenues for
period was 30% as
against 23% for the Class I total
while, with the same allowance,
1954 revenues showed a 10% gain

other

SUTRO

Mexico

New

1.946-1954

roads

Since 1858

road's

ern,

170,417
is

common

the

part to the acquisition of

common.

Frisco

the

the

is

to growth,
its record has been notably good,

served.

sued

in

forefront

the

view
$6.41 and

1954, however,

duction to the $1.50 rate that held
for 1955 was due to the decline of

share

per

1951 avail¬

rate because

the

at the very

and

two

available

estimated

of $4.15-$4.20

While

earn¬

other

Land Co.

the Alabama,

$5.15

make it more

earnings

& Arizona

earnings declined to $3.51.
$2.50 rate was restored for

of

ing forward to an increase in the
in

available

1950

interest in

50%

the

1953

only 4.6%. It is therefore
that the market is look¬

1956' distribution to

on

The

1955, the indicated rate of re¬

obvious

1951

per common share,
but the 1952 dividend was reduced

$1.50 dividend rate that prevailed
turn

in

the

"kicker"

potential

ings of $6.83

for the road's com¬
On the basis of the

of about 31 Vz
mon

paid

were

strength

price

current

the

in

share

not being

are

Railway

.

an

and

character

Dividends of $2.50 per common

St.

the

of

aspects

Louis-San Francisco

appeal by itself.
There are two other factors, how¬
ever.
One is the road's
growth

.

.

San Francisco 4
•

Teletype SF 573

Volume 182

Number 5490

.

.

.

The Commercial and Financial Chronicle

(2641)
COUGHLIN, WALTER J*

DENNAR.D, ROBERT

Coughlin & Co., Denver

Dallas

COUIG, J. DALTON
Hirsch

•<
,

The

Co., New York

CRAFT, JtOfcERT H.*

W.

R.

Craigie & Co., Richmond

-

Ca£ Houston
^ ^ *

CROLL, JOSEPH D.

DOERGE,

CALVIN

Union

CROWELL, WARREN H.*
Crowell, Weedon & Co., Los Angeles
SAMUEL

30

CURTIS, ARTHUR VV.
A. G.

Becker &

Winston

C. J.

& Co.,

Houston

&

DALENZ, JOHN
Calvin

Bullock

Kitchener

Jack M.

R.

EVAN

Bass & Co.,

Blair

&

DAVIS,

W.*

SHELBY

JAMES

Courts &

E.

EMPEY,

Midwest Stock

Exchange, Chicago

<Je

EMRICH,

Upham & Co., New York

BARY, MARQUETTE*
F.

S.

Smithers

H.

&

Hentz & Co.,

DECKER,

O.

American

Co.,

York

Stroud

ESTES,

New York

C.

Eank,

EUSTIS,

Chicago

Garrett

&

Sons,

DeHaven &

&

Co.,

Jackson

EVANS,
Stein

IIENRY
Bros.

Mr.

&

Philadelphia
&

New

ALBERT
&

& Co., New York

P.
F.

&

Baxter,

& Co.,

New York

0.*

Schnedler

of

the

Midwest

Mr. Schnedler

Salomon

Bros.

&

Bache & Co.,

Howard,

G.

Folger,

SHELBY*

Nolan-W.

Friedrichs

Hibbs

B.

Fla.—Wil¬

become
R.

con¬

Jobin

In¬

vestments

Limited,
242
Beach
Drive, North.
Mr.
Greene was
previously with A. M. Kidder &

Stock

Exchange.
previously with

Co.

Orders executed

&

C.

W.

Eurns

Bros.

Bankers

&

Coast

Exchanges

&

Co.,

Denton, New York

Trust

Natl.

New

NEAL

Company, New York

WALLACE

Assn.

Sec.

G.

York

Underwriters, Brokers and Dealers

H.

Dealers,

Washington

Industrial,

KEITH*

Stock Exchange,

New

HERBERT

V.

B.*

FRANCIS

Peabody &

&

P.

Weeks,

ROBERT

York

Boston

M.*

,

Schwabacher <i? Co

,

Yoi'k

New

HARRY

New

Co.,
B.

.

L.

Members

of Canada,
New

Toronto

Hayden,

Stone

GEDDES,

EUGENE

GEORGE,

New

M.

FDVVARI)

Harriman

New York

Co.,

&

FRANCISCO

4

First

Securities

5, N. Y.

San

Street

100

Stock

Exchange

Produce

Exchange

(Associate)

Francisco

4, Calif.

Montgomery Street
SUtter

7-4150

1-5600

Teletype SF 349

Teletype NY 1-928

T.*

&

Research

Private

Wires to Principal Offices

New York

Securities

York

New

Wall

Santa Barbara

GIIROY, EDWIN L.

San Jose

—

York

COrtlandt

DAVID

Corporation,

Cotton■ Exchange

New

New York

Allyn & Co., New York

National
,

Francisco

14

Dominick,

Jr.,

York

Sun

—

(Associate) —Chicago Board of Trade

C.

GILLIES, GEORGE J.

GILLMOR,

Exchange

Commodity Exchange Inc.—Fresno Cotton Exchange

Ripley & Co., Chicago
&

Stock

York

New

GERNER, PHILIP H.
Dominick

York

American Stock Exchange

Clark, Dodge & Co.,

C.

Securities,

Biddle & Co., Philadelphia

GALLAGHER,

A.

Railroad

State and Municipal Bonds

GATCHELL, EARLE

Investment Securities

Public Utility,

York

GAERSTE, JOHN L.
Cooley & Co., Hartford
Yarnall,

Bank, Chicago

CO.

Oakland

Pacific

on

PACIFIC COAST SECURITIES

Investment Dealers Assn.

Sacramento

has

Gerard

Hayden, Miller & Co., Cleveland

GASSARI),

SAN

Greene
with

Hutzler, New York

Labouisse,

Reynolds & Co.,

Garfield 1-4460

PETERSBURG,
H.

nected

New York

Washington

GARDINER,

STREET,

liam

FRIEND, ARTHUR S.*

Hornblower

,v;:-

as¬

Philadelphia

Weil,

Kidder,

SUTTER

ST.

Fla.—Fer¬
become

A. M. Kidder & Co.

Co.,

GANNETT, THOMAS

111

has

was

Co., New York

Williams &

FL'NSTON,

Boyce, Baltimore

Illinois

ELWORTHY

PETERSBURG,

W.

(Special to The Financial Chronicle)

sociated with Beil & Hough, Inc.,
350 First Avenue North, members

FRED*
Fox

FULTON,

W.

THOMAS

Continental

ris

Marshall, Seattle

GALLAGHER,

Mrs.

:

York

Foster

P.

-

Pierce, Fenner & Beane,

FULKERSON, Jr., W.

CLEMENT A.*

EVANS,

ST.

FORRESTER, Jr., WILLIAM A.*

Joins Gerard Jobin

Hough

FUGLESTAI), ARNE

C.

Clement A. Evans & Co., Atlanta

DEMPSEY, WILLIAM L.
Co.,

Dodge

EVANS,

Townsend, Crouter & Bodine,

Joins Beil &

FROST, HARRISON C.*

CARNOT

Clark,

York

*Denotes

Philadelphia

Spencer Trask
EVANS,

Eateman, Eichler & Co., Los Angeles

&

RUSSELL M.*

Spencer Trask & Co., New York

Baltimore

Ewing T. Boles

Worcester

Co., New Orleans

Company, Chicago

ALLAN

Jr.,

Co.,

T.Jerrold Bryce

(Special to The Financial Chronicle)

FRIEDRICIIS,

Company, San Francisco

EUSTIS, BRITTIN C.*

DeHAVEN, WALTER T.

Drexel

7.

N.

Little

H.

&

Walter A. Schmidt

York

FRICKE, JOHN E.
Atlanta

Co.,

New
J.*

FREEMAN, MERRILL

PAUL*
National

DeGROOT, WILLARD G.*

New

W.*

B.

Jr.,

M.*

FREDERICK, PAUL O.*

San Francisco

Trust

&

W.

,

N.*

FORDON, RALPH
Fordon, Aldinger & Co., Detroit

FOSTER,

MILTON S.

ERGOOD,
New

DeGROFF, RALPH L.*
Robert

N.*

Company, San Francisco

Julien Collins &

<IeBRONKART, EUGENE H.

CHARLES

Merrill Lynch,

G.

Co.,

York

LEONARD
McDonald & Co., Cleveland

i

LESTER H.*

American

DEAN, HOWARD B.
Harris,

JOHN

New

New York

FLYNN, II.

Elkins, Morris & Co., Philadelphia
ELLIS,

Co.,

FLYNN, GEORGE T.

FOX,

Fay,

&

Hornblower & Weeks, New York

Boston

EI.KINS, Jr., GEORGE

CULLOM

Shelby Cullom Davis & Co., New York
DAY,

&

FISHER,

Hanrahan

Edwards & Co., Fort Worth

JOHN

Hooker

Co., New Haven

G.

FLEMING, CHARLES

Co., Milwaukee

WILLIAM

California

EIDELL,

A.

1952 -53

Condon, Chicago

Dillon, Read & Co.,

JOHN F.

First

54

HOWARD*

FLANIGAN, PETER

Edwards, Inc., Oklahoma City

EGAN,

New York

Co.,

J.

-

Singer, Deane & Scribner, Pittsburgh

L.*

Howard,

William N.

Davis, Skaggs & Co., San Francisco
JOSHUA

&

1953

FITTFRER, JOHN C.
Kuhn, Loeb & Co., New York

Co., New York

Baird &

EDWARDS,

Nashville

Lester, Ryons & Co., Los Angeles
DAVIS, GEORGE

J.

Shelby Cullom Davis & Co., New York

DAVIDS, MARK*

DAVIS,

York

EDWARDS, JOHN H.

Minneapolis
;

New

EBBITT, KENNETH C.

Webber, Jackson & Curtis,

DAVENPORT, C.

&

NEWMAN

Eaton

DAVANT, JAMES W.
Paine,

Corporation,

EATON, Jr., CHARLES F.

DATTELS, DAVID R.*
Dattels & Co.,

Devine

&

Jr.,

Green shields

Rotan, Mosle & Co., Houston

Ltd., New York

&

Bear, Stearns & Co*,

DUSON, Jr., C. PHARR*

McG.

55

K.*

FIRSTBROOK, BRADSHAW

"

S.

GEORGE

ARTHUR

FINNEY,

Washington St., Chicago

Robert W.

Philadelphia

Co.,

Scranton

HOLDEN

McDougal
York

SYDNEY G.

DUNNE,

-

Fauset, Steele & Co., Pittsburgh
FIELD,

DUNN, STEWART A.*

DAFFRON, Jr., ROBERT E.
Harrison

W.

1954

J.*

City National Eank, Kansas City

Blyth & Co., New York

Co., Chicago

CUSHMAN, ALLERTON
Rowles,

Securities

DUFFY,

presidents

FAUSET, JOSEPH H.*

O.

NORMAN

DROBNIS,

K.*

Cunningham, Schmertz & Co., Pittsburgh

past

FARRELL, F. D.

JOHN

DOWNEY,

iba

Corporation, Chicago

Smith, Barney & Co., Chicago

Moore, Leonard & Lynch, Pittsburgh

;

W.

FARRAR,

Corporation,

DORBRITZ, ERNEST O.

GORDON*

Boston

Chas.

York

W.*

Dominick & Dominick, New

DeHaven & Towusend, Crouter & Bodine,

CUNNINGHAM

& Co., New

Securities

-Xr1'- DOMINICK, BAYARD*

Philadelphia

York

Co., Wheeling

FALSEY, WILLIAM

Saunders, Stiver & Co., Cleveland

Durham

M.

Hallgarten & Co., New York

CROUTER,

Charlotte

CARL II.*

DOERGE,

First Securities Corporation,

New

VV.

&

FAIRMAN, FRED W.
Fairman, Harris & Co., Chicago

Wm. J. Mericka & Co., Cleveland

CROOM, WILLIAM D.

Masten

First

York

New

I.

r

-w

ROBERT

E.

FAIRCHILD, PAUL W.

& Co.,

JOSEPH

American

& Co., New York

CROSS,

Dickson

S.

DIXON,

-:

*

A.

STUART

Glore, Forgan

Atlantic National Bank, Jacksonville

Asiel

WILLIAM

A.

DIECKMAN, ELMER F.

CRANFORD, JAMES A.*

CROCKETT, CLAUDE

EWING,

Corporation, Boston

DICKSON, R.

Crockett &

EVERITT, WALTER A.*
Model, Roland & Stone,

Reynolds & Co., New York

Corporation,

York

CRAIGIE, WALTER W.*
F.

Parker

DEVLIN,

American Securities
New

E.*

Rupe & Son, Dallas

DEVENS, CHARLES

117

Chicago

Company,

Monterey

—

Sacramento

Fresno

—-

—

—

Oakland

Santa Rosa

GLASSMEYER, EDWARD
Blyth &

Co.,

York

New

GLORE, Jr., CHARLES

Glore, Forgan
GLOVER,

W.

California

F.

& Co.,

Chicago

WAYNE*

Bank,

Los

Angeles

GOLDSMITH, BERTRAM M.*
Ira

72

EUREKA

Haupt & Co., New York

CHICO

servi

Ms

GOODWIN, Jr., ARTHUR E.
Rowles, Winston & Co., Houston
GOODWYN,

Goodwyn

Jr.,

WILFRED

§ry

RENO

SACRAMENTO

O

L.*

& Olds, Washington

SANTA

VALLEJO

GORDON, DAVII) II.
Investment Bankers Association,

offices

OAKLAND
SAN

i"1

Mrs.

Investment

^■SrJ

CATHERINE
Bankers

t

I

Eurns
—

From

an

old

print

Bros.

SAN
it

Underwriters. Distributors and Deaters in Cor»

porate• Municipal and Unlisted Securities

GRAM,

coverage

Established

&

Co.

Bank, Fort Worth

of America's

Jr.,

IIARVEY
Lemon &

Co., Washington

Lo*

New

Angeles

York

Stork

Stock

Exchange

Exchange

SAN FRANCISCO

•

•

•

PASADENA

B*

Johnston,

GLENDALE

Thackara, Grant & Co., Philadelphia
GR\Y,

EDWARD

C.*

New York Stock

LOS

San

American

Franciaco

Stock

LOS ANGELES

Stock

Exchange
•

Exchange

(Auociate)

NEW YORK

Chase

growing

LAGUNA

area

LONG

SHELDON

BEACH

BEACH

ANAHEIM
WHITTIER

BRADLEY

Manhattan

DIEGO

REDLANDS

Exchange, New York

Guaranty Trust Company, New York

GREEN,

ANGELES

SAN

fastest

1883

GREEN, J.
Membert:

BAKERSFIELD
VENTURA

GRANT, FREEMAN G.

J. Barth

MONTEREY
SALINAS

LAS VEGAS

Denton, Toronto

GRAHAM, T. E.*
First National

OBISPO

LUIS

't

complete
&

JOSE

FRESNO

Association,

Washington
GOULD, JAY

Son Francisco in 1883

provide

FRANCISCO

SAN

Washington
COULD,

ROSA

STOCKTON

R.*

Bank,

New

BEVERLY

First California Company
Underwriters

York

VAN

HILLS

NUYS

ESCONDIDO
COVINA

GREEN, WINFIELD
PRIVATE WIRE CONNECTIONS BETWEEN ALL OFFICES
Direct Leased Wire*

Chicago Daily




.

Members

Chicago
San Francisco Stock

to:

GREGORY,
SHF.ARSON. HAMMILL & CO., NEW YORK

News,

SCHERCK. RICHTER CO., ST. LOUIS

GEORGE

M.

Midu

Gregory & Sons, New York

est

Exchange

Stock Exchange

Los Angeles Stock Exchange
American Stock Exchange (Associate)

Private Wire to
New

York, Chicago

and other

SAN FRANCISCO

GREGORY, Jr., WILLIAM II.

on

leading

Eastern cities

300 Montgomery Street

Gregory & Sons, New York

Continued

LOS ANGELES

page

118

647 South

Spring Street

-118

The Commercial and Financial Chronicle

(2642)

Continued

from

JOHN

IIOLLAN,

117

page

V.

Brothers

Barr

*

•

KNOPP,
First

Co., New York

&

HOLMES, JENTRY S.*

KURT

H.

New York Hanseatic

Chemical

New York

Hanseatic

GRUNER, GEORGE J.*

hayden, donald w.

♦

'

JOHN

III,

C.

R.

DENTON II.*

L. Day

National City

~~

/

Equitable Securities

HEFFERNAN,

:

-

^

HENRY

-•*

,

PHILIP

HANNAFORD,
Dawson,

HANRAHAN,

PAUL

Hanrahan

HANSEL,
.

JAMES

&

&

Co.,

R.

P.

ROBERT

Co.,

Philadelphia

Francis I.

L.
&

Co.,

New York

Jones,

Washington

HIBBEN, JOSEPH W.

V

Chicago

Chicago

P.

W.

Sachs &

Goldman,

IGLEHART,

HASSMAN,
A.

G.

ELMER

Chester,

ROBERT
Richards

&

Co.,

New

Angeles

Bank, New York

Jr.,

Bache

York

JARDINE,

HII'KINS, CLIFTON A.

Wm.

Braun, Bosworth & Co., New York

-

White, Hattier & Sanford, New Orleanft |

IIOBAN,

Chicago

J.

JEFFERS,

WILLIAM A.

First

Grubbs,

EDWARD

National

JOHNSON,
Barcus,

J.*

Philadelphia

Drexel

FREDERICK
&

Investment

WILLIAM

C.

Co.,

F.

;

Philadelphia

•

,/t

WILLIAM W.
&

Coe,

Washington

Webber, Jackson & Curtis,

MAGNUS, WILLIAM S.

E.*

Magnus & Co., Cincinnati
MANLEY,

.

MILTON

A.*

Manley, Bennett & Co.,

Jackson

Detroit

.

MANN, THOMAS D.

Glore, Forgan & Co., New York

New York

MARCKWAI.D,
Discount

ANDREW

K.

Corporation, New York

LAURENCE M.

Laurence M. Marks

Milwaukee

LINCOLN, MARY

Chicago

GEORGE

Young, Weir, Inc., New York

<fe

MARTIN,

F.*

Co.,

Chicago

L.

W.

New York

Bank, Chicago

Kindred

H.

MACLIN, LUTTRELL

Washington

LIEBMAN, WILLIAM L.
Co.,

■"

New York

Magazine,

Mackall

Paine,

Becker & Co.,

&

York

New

B.

Jr.,

MARKS,
Loewi

'

Dallas

Lyons & Co., Louisville

MACKALL,

Bear, Stearns & Co., New York
&

L.

McLeod,

LEWIS, SALIM L.

Co., San Antonio

Kirkland

JENNETT,

G.

Pittsburgh'.

Bank,

,

Co.,

Co.,

MACHOI.D,

LEWIS, MILTON F.
A.

C.

Chicago

F.*

&

MacDONALD,

Co., New York

S.*

Chicago

National

SAM

Finance

W.

GEORGE

ED

York

New

Co.,

LAURENCE
&

LYONS,

Lemon it Co.,

Lewis it Co.,

EARLE*

JENKS, MORTON

Jenks,

Allen

York

New

R.

Arthurs, Lestrange & Co., Pittsburgh

Staats & Co., Los Angeles

Dittmar &

EDWARD F.

McMahon & Hoban,

Mrs.

(

Jr.,

R.

Wertheim

Chicago

Haupt it Co.., New York

LEWIS, Jr.,

&

LEWIS

LYONS,

LESTRANGE,

A.

New York

GEORGE

International Bank,

Bankers Association,

it Co.,

New York

Continued

Washington

New York

L.*

on

page

JOHNSON, JOSEPH T.*
The

Crowefl/Veecfon

& Co.

Milwaukee

Milwaukee

JOHNSON, MARSHALL H.*
McDaniel

JOHNSON,

Members Los Angeles Stock Exchange

Company,

Lewis &

Co., Greensboro

SAMUEL

P.

Southwestern Securities Company, Dallas
JOHNSON, THOMAS M.*

UNDERWRITERS

Johnson, Lane, Space & Co., Savannah

DISTRIBUTORS

•

PRIVATE

W

PLACEMENTS

JOLLEY,
The

Bateman, Eichler Si Co.

LEX

Robinson-Humphrey Company,

Atlanta

650 S. SPRING ST.

LOS ANGELES 14

•

JONES,

TRinity 0281

•

" *'

TELETYPE LA 38

Puadent

•

Long Beach

•

-

San Diego

Laguna Beach

•

Investment Securities

EDWARD D.

Edward

D.

Jones

it

Co., St. Louis

453

JONES, ELISHA RIGGS
E.

R.

Jones

JONES,

&

Co.,

SOUTH

& Co.,

SPRING,

STREET

Baltimore"

ANGELES

LOS

GRAHAM*

Cooley

13

Hartford.'

JOSEPH, HERMAN B.

Joseph,
JUST,

Mellen it Miller,

PAUL

*

Cleveland

Pasadena

A.*

'

j

Corporation,

Chicago

GILBERT

Kuhn,

Loeb

Garfield ave.

north

28

Television Shares Management

KAHN,

&

W.

Co.,

New

MEMBER

York

LOS

ANGELES

STOCK

EXCHANGE

KAUFMAN, C. G.*
Rodman

& Renshaw,

Chicago

KEMBI.E, WILLIAM T.*
Estabrook

MITGHUM, JONES & TEMPLETON
Established

1920

&

Co., Boston

KEMP, F. PENNINGTON
W.

L.

Lyons & Co., Louisville

KEMP, Jr., GEORGE S.
Abbott, Proctor & Paine,

-

Richmond

C.

Devine &

J.

Co., New York

KENNY, GEORGE P.

underwriters

distributors

'

brokers

(

Underwriters and Distributors

KENNEDY, FRANK T.*

of Municipal and Corporate Bonds,

Willis, Kenny & Ayres, Richmond

KENOWER, JOHN L*
Kenower, MacArthur & Co., Detroit

Los Angeles
650 S.

San Francisco

KENT,

MARTIN

Equitable Securities Canada Ltd.,

Spring St.

405

MAdison 5-2621

Montgomery St.

DOuglas 2-2220

Toronto

; j

KERESEY, JAMES F.
Baker,
KERR,

Members
'

,

Los

'

Neiv York Stock Exchange

■-

Angeles Stock Exchange

San Francisco Stock Exchange

KENNETH

■!t':

Direct wJre to New York and San Francisco




established 1887

KERR, WILLIAM ,D.

INVESTMENT SECURITIES

Bacon, Whipple & Co., Chicago
KILBURN,

LOS ANGELES: 640 S. Spring St. • SAN FRANCISCO: 111 Sutter

PETER

Greenshields

First

*

A.

Republic Company, New York

&

KING, FRANCIS

\

William R. Staats & Co.

Weeks & Co., New York

Central

»

Listed and Unlisted Stocks

G.*

Boston

Co.,

Union

Montreal
MEMBERS:

S.

Corporation, Boston

KING, JOSEPH H.

New

*

Securities Corporation,

York

Stock

Los Angeles

New

GEORGE

B.*

Philadelphia National Bank, Philadelphia
KNIGHT,

NEWELL

Mercantile Trust

Exchange, American Stock Exchange

(Assoc.)

Stock Exchange. San Francisco Stock Exchange

York
Pasadena

KNEASS,

S.

Company, St. Louis

!

LYNN, EUGENE

LEMON, JAMES H *

Company, Dallas

HARRY

& Co.,

Co.,

Allyn & Co.,

LYONS,

Co.,

&

Mercantile

LEMKAU, HUDSON B.

C.*

t

E*

Moore, Leonard & Lynch,

New York

Weeks,

Hutton &

Johnston,

C.

LYNE,

Morgan Stanley & Co., New York

WILLIAM

Jr.,

First Southwest

JACOBS,

Wertheim it Co., New

Ira

Townsend, Dabney & Tyson, Boston
JACKSON,

E.

>

New York

LYNCH, Jr., CHARLES M,*

J.

LEES, Jr., LEON*

Philadelphia

JAMES

Jr.,

A.

LEEMING, CHARLES E.
Chicago Tribune, New York

York

LAWRENCE

JACKSON,
Co., Los

IIILSON, JOHN S.*

HATTIER, Jr., GILBERT

&

&

Jr., ROSCOE C*
Ingalls & Snyder, New York

MILLIARD, HENNING*
J. J. B. Hilliard & Son, Louisville

ROBERT L.¬

Mr.

W.

W.

A.

LLOYD

LYKLEMA, WALTER

New York

LEE, JAMES J.*

Cincinnati

Stearns & Co.,

Laidlaw

Nashville

INGALLS,

New York

C.

Hill

White, Weld & Co., New York

♦Denotes

& Co.,

HILL,

G.

HATCHER, LLOYD B.

Chase Manhattan

ILLOWAY,

MALVERN

Malvern Hill

Pa.

Becker & Co., Chicago

HATCHER, Jr.,

J.

Hutton

Co.,

J.

Howard, Eoston

McCormick

Equitable Securities Corporation,

Philadelphia

Aspden, Robinson it Co.,
HILL,

Company,

Paper

E.

it

&

j

LUNDFELT, CHARLES E.

LEACH, ORIN T.

Q.

Chicago

Lucas, Eisen it Waeckerle, Kansas City'

Kansas City

Starkweather & Co.,

Estabrook

>

S.

Seligman, Lubetkin it Co., New York

Co., Kansas City

RAYMOND

LEDYARD,

/

^

LUCAS, Jr., MARK A*

Fenner & Beane,

LAWLOR, Jr., WILLIAM J.

Ristine it Co.,

MATTHEW J.

Hickey & Co., Chicago

New York

JOHN

HARVEY,
Scott

Co.,

III,

"

JOHN

&

W.*

LUCRE, FRANK L.*

Latshaw,

Hornblower

)
,

THEODORE

LUBETKIN,

New York

Goodbody & Co., Detroit

KURT J.

Hutton

John

LAUDE,

Simonds & Co., Detroit

E.

A.*

LAUDY, WILLIAM R.

JANSEN

McKelvy it Co., Pittsburgh

W.

HICKEY,

F.*

HUTTON, Jr., JAMES M.

IIIBBER.D, WILLIAM W.
C. J. Dcvine & Co., New York

HARRIS, HENRY

With

O

ANDREW

&

V.

Eear,

\

Mrs.

'

Milwaukee "**

JOHN

Jr.,

Eaton

LOW,

JOHN
it

»

Rhoades- & Co., New York

,

HUGH

LORD,

Hutton

A.*

Loeb,

The Illinois Company,

BEVERLY W.

Eankers Trust Company,

White, Weld & Co., New York

Laker,

Corporation,

LAUD-BROWN), WELLES*

MacGregor, Pittsburgh

C.

}

Hugh W. Long & Co., Elizabeth, N. J.

York

F.

LATSHAW,

Hulme, Applegate it Humphrey, Pittsburgh

F.

Kidder, Peabody it Co.,

HARRIS, DAVID J.

E.

HUGHES. WILLIAM S.*

IIUTTLINGER,

Harrington & Co., Jackson

New

,

Co., Jackson

Farwell, Chapman & Co., Chicago

y

LATSHAW,

»

EDGAR J.*
Langley & Co., New York

LOOMIS,

it Share

Merrill Lynch, Pierce,

HURLEY, WILLIAM L.

Kreeger & Hewitt,

-

LATOUR, WALLACE C.

HUNTER, FRANK II.

HEWITT, MAX A.*

HARRINGTON, FULLER A.*

Harris & Co.,

duPont

W.

Barr Brothers it Co., New York

III,

Association,

H.

LOGSDON, KELLOGG

LONG,

Goodbody it Co.,

York

M.

Loewi it Co.,

Co., Philadelphia

LARKIN, THOMAS

W.*

HENRY

LOFTUS,

GRUA, JOHN A.

Bond

Bankers

w

CARROLL

LOEWI, J. VICTOR

G.*

Nashville

F.

Abbett & Co., New

E.

/

Clark, Landstreet it Kirkpatrick,

Burge & Kraus, Cleveland

HUNT,

,*■

,

New York

II.*

Little &

Carl

New York

Indianapolis

HUMPHREY, Jr., ARTHUR

New York

CHARLES

HEWITT,

B.

Harper & Son & Co., Seattle

Fairman,

Day &

LA

LANDSTRF.ET,

M.

WILLIAM

&

LOEB,

STANLEY

Indianapolis

HULME, MILTON G.*

San Francisco

.

LANDGRAF, MAYBURN F.

Wagenseller & Durst, Los Angeles

C.

Fridley, Hess & Frederking, Houston

HARPER, DICKINSON C.
Wm.

L.

//'

Upham & Co., New York

FRED

Errooke &

Company, Dallas

t

Hogle it Co., New York

Lord,

HESS, WILBUR E.*

Bankers Association,

Securities

GEORGE

HUDSON,

A.

H.

S.,

it Co.,

LOCKETT, Jr., JOSEPH F.
Townsend, Dabney it Tyson, Boston

KYNETT, GERALD P.

EDWARD*

JAMES

C.

R.*

Co., New York

WILLIAM

CHARLES

ALDEN

Investment

Hammill 8c Co.,

Jr.,

>

»

Morton

LITTLE,

Fidelity-Philadelphia Trust Company,
Philadelphia

HUGHES, ALBERT R.*

Henderson it Co., Des Moines

Woodcock, Hess & Co.,

Harkness & Hill, Eoston

Dwinnell,

A.

Ball,

HESS, ARLEIGH P.*

New York

Washington
HARKNESS,

HOWARD,

Glover
R.

KURTZ,

J.

Herald Tribune, New York

Union

h.

Shearson,

L.*

Portland

Manhattan Eank, New York

H.

Hollywood

i**
New York

Prescott, Shcpard it Co., Cleveland

Piper, Jaffray it Hopwood, Minneapolis

IIERZER, KARL P.

HANSON, MURRAY
Investment

C.

Hooker & Fay,

B.*

DOUGLAS

Shields

T.

Worcester

Co.,

New York

RALPH*/

HENSHAW, EDWARD

York

New

Inc.,

York

New

W.

LITTLE,

ROBERT

KRUSEN,

Co.,

LIPSCOMB,
San Antcnio

New York

Co.,

JOHN

&

Chase

J.*

JOHN
&

H. Morton &

KRUSE,
*

Louisv^

Hallgarten & Co., New York

HENDERSON, THEODORE C.

D.*

Hannaford,

-

St.

Penington, Colkct & Co., Philadelphia

HOWELL,

World-Telegram & Sun, New York

:..;;

II.

Co.,

Farwell, Chapman & Co., Chicago

*r

HENDERSHOT,

White, Weld & Co., Boston

Lynchburg

*

H.

HOUSMAN, RUSSELL

HOWE,

M.*

JOHN

Shearson, Hammill & Co.,

Chicago Tribune, Chicago

W.

HORTON, ARTHUR*

J.

HELLER, JAMES M.

HAMMOND, Jr., WILLIAM C.

KRUMM,

HOWARD, KENNETH J.*

PAUL*

Cincinnati

R.*

BERT

Nicolaus &

Harris,

Woody & Heimerdinger,

.Walter,

Hallowell, Sulzberger & Co., Philadelphia

HAMPSON,

e.

Bank, Cleveland

HEIMERDINGER,

Corporation,

Stifel,

York Times, New York

New

Nashville

Weeks, New York

Horner & Mason,

HORNING,

Dallas

-

t

G.

it

it Co.,

Kcrmendi

EDWIN B.*

HO WAR,TV C.

C.

heffern, gordon

New York

it Co.,

HALLIBURTON, GUS

HALLOWELL,

john

Dempsejy-Tegeler St Co., Cos Angeles,

m.

RALPH

York

New

hecht,

Allen

HOUSTON, B. F.

"

Tripp & Co., New York
HALL,

Chicago

healy, George p.*
Adamexi Securities Corporation,

%

,

Mason-Hagan, Inc., Richmond
haight, c.

-

Central Republic Company,

«^

HAGAN,

fjdde k.

hays,

1

Eppier, Guerin it Turner, Dallas
HAGAN, Jr., JOHN C.*
Mason-Hagan, Inc., Richmond

Downing 8c Co., Baltimore

Baumgartner,

New York

John Nuveen it Co^,

GUERIN, ,OEAN P.

Savings Bank, Chicago

&

1

*

Hornblower

HORNER,

Scott,

Harris Trust

York

h.*

Exchange Bank,

hardin h.*

hawes,

Corporation,

Corn

Banks, Ifew York

Pierce it Co.,

KORMENDI,

HERMAN

Camp

KOERNER, IRVING

Philadelphiaa
Jr.,

LIND,

LINEN, JOHN S.

ARNOLD

Rauscher,

Morgan & Co., New York

HORNBLOWER,

York

New

GRUNEBAUM, PETER K.
New

alfred

hauser,

Corporation,

New York

P.

Drexel it Co.,

Washington

President,

KOCUREK,

HOPKINSON, Jr., EDWARD
the

Assistant to

Administrative

Gregory it Sons, New York

GR'UNEBAUM,

gabriel*

hon.

hauge,

GREGORY, III, WILLIAM H.

Federal Land

Association,

Washington
HOPKINS, JOHN E.
J.

B.

Bank, Saint Paul

KNOX, JOHN T.*

Bankers

Investment

In Attendance at IBA Convention

BERNARD

National

Thursday, December 15,1955

...

San Jose

•

•

San Diego

Van

Nays

•

•

Beverly Hills

Glendale

•

•

Salinas

Santa Ana
•

Sacramento

St/ j

120

V^Volqme 182;; Ntmiber 5490

Continued

.

,

,

The Commercial and Financial Chronicle

frcnrpage 34

{

^

v

<2643)

ing

power of our national, indus¬
try-wide (and-sometimes multipie - industry - wide)
unionC and

;

the

ABasisforConiidence

consequent

ministratively, which will stimu¬
late business confidence, encour¬

credit
and

that

Automation.

submit that every Amer¬

I

for

then,

the

cation

is bright
economy dur¬

it is even
brighter for the electrical indus¬

the electrical industry has
been growing at a rate approxi¬
mately twice that of the economy
a

whole.

We expect the use of

electricity
next

10

double

to

just

years,

ing each

decade

as

on

within the
it has dur¬
the average

since

before the turn of the

tury.

We

sale
of

of

and

trillion

some

fairly

near¬

fields

home, the
factory or mine, the
school or hospital, the office or
the store, the number of new cur¬
rent-consuming devices multiplies
each year with amazing rapidity,

should

fuel,
gas

will

of

for the

let's

look

the

almost without

are

limit, so the problems and challehges confronting business man¬
agement today are both real and
It is

much beyond

talk

to

discuss

the

scope

of

sources

confidently

is

further

research

en¬

be¬
will

it

demand

will

for

continue

years

as

all

to

that

and

bright

formidable.

this

oil,

fully competitive in the
The astounding pro¬
jected growth of energy require¬
ments justifies the prediction that

problems and obsta¬
For just as the opportunities
future

energy

coal,

ahead.

years

at

of the

the

it

that

new

a

water. As yet it
in this country

other

but

make

bright side of

Now

as

of

source

compete

these

with

of

supplement

and falling

ergy,

picture.

thought

new

a

cannot

does the utilization of the

So much

be

which

lieved

cles.

many

application, but power
is the most discussed
In this area atomic energy

today.

already in place.

some

has

It

Energy.

of

myriad current-consuming devices

the

demand
cannot

known

rise

for

atomic

fuels
many

energy,

its future is, will simply

constitute another and most wel¬

of

sult

projection of the'needs for
capital in the years ahead,

lies

in

the

dollar annual income class.' If
to

are

find

the

try, not six

*

and

much

j

Exchange

available

nology
the

service

Honolulu Stock

Exchange

and other

Private leased
SAN FRANCISCO

PORTLAND

•

•

radiotelegraph circuit

HONOLULU

•

•

NEW

YORK

AND

tech¬

26.
be

new

And the

tentative

dates

are

to

the Executive
Committee in January,
v
by

David Belinkoff Opens

limited

means

scientists

and

HEMPSTEAD, N. Y.—Bert Ed¬
wards, partner in Edwards &
Hanly, members of the New York
and

American

100

North

Stock

Franklin

has joined the

Long

Exchanges,
Street, an¬

ities

addition to filling their
important place in industry, will
make possible the growth and de¬
velopment of the political, social,
cultural

and
life

North La Brea Avenue.

•

f

head of the

political department of the Hebrew
Freedom Movement in Washing¬
ton, D. C.

L. E. Johnson

Opens

(Special to The Financial Chronicle)

CHAPEL

Johnson is

HILL, N. C. —L. E.
engaging in a securi¬

ties business from offices here.

technological
finally,
our

And

challenge

of

further

standard

our

enlarging

of

trading markets

in¬

underwriters

living

leisure.

our

living is high

but

was

spiritual aspects of
to keep pace and

with

progress.

business from offices at 634

Rabinowitz

rapidly expanding
investment
firm's

Mr. Rabinowitz

Belinkoff is engaging in a secur¬

who, in

Island

Baruch

Public Service Division.

LOS ANGELES, Calif. —David

of non-technical college graduates

that

nounced

(Special to The Financial Chronicle)

but

large complement

a

These

approved

mechanisms

world.

by no

include

have

we

the

had

Our

as com¬

really

distributors

surface.

only

The

brokers

more

our

•

OTHER

This is equally

only

to

true
it

Great

as

Honolulu

PACIFIC

we

BOSTON

•

COAST

SEATTLE

•

CITIES

that

ba

We

needed

must

1 MONTGOMERY STREET

MEMBER

member

tech¬

new

mass-market

will

used

CHICAGO

of

improve

BRUSH, SLOCUMB & CO. INC.

a

can

confident

am

emerge.

Chicago Board of Trade

•

new

engineers

will

ment

'

American Stork Exchange

leading commodity exchanges

LOS ANGELES

•

San Francisco Stock Exchange

•

ANTONIO, Tex. — The
Group, IBA, will meet in
the
City of Corpus Christi, on
Thursday, Friday and Saturday,
April 26, 27 and 28, 1956, with
registration the evening of April

Texas

faster than

no

fabulous

brave

our

morn¬

supply of trained
build, operate and

to

the

need will be
to

this

me

proceed

can

available

manpower

of

to

The application of

ing.

niques

Midwest Stock Exchange

•

Here again is

subject that is worthy of all the

time

I

Exchange

Edwards & Hanly Staff

Convention Dates

decade, we
foretaste of the
belong to us or to
any country which will apply the
principles of a Peoples Capitalism.

•

-Mtmbers-

New York Stock

Rabinowitz Joins

Texas IBA to Set

at

as

technical

more

of economic progress.
has been in the past

&Co.

Los Angeles Stock

Armitage,>

..

a

unexplored.

DISTRIBUTORS

Dean Witter

\!

Albert T.

we

SAN

world of tomorrow.

have

i

Marks

coun¬

million

seven

or

future that
■i

M.

research discloses,
the greater becomes the areas yet

DEALERS

•

Laurence

re¬

Manpower development for the

scratched

i

}

private funds

present.
great

Joseph T. Johnson

five-to-ten-thousand-

knowledge

ft

A

new

pared with most countries of the

BROKERS

•

1949-50

re¬

velop new ways and mechanisms
for tapping the savings of fami¬

world,

i

* 5

'

.■

■

area
in particular that
you gen¬
tlemen will be called upon to de¬

standard of

i

v

1950-51

compelling needs as
education, highways, housing, etc.,
etc., is staggering. It is in this

creasing

UNDERWRITERS

:

also for such

and

INVESTMENT SERVICE

"V

not
only to meet the requirements of
industry, both old and new, but

The

'Complete

'{■

therefore in rising prices.

balance

The great and growing bargain-

iba past presidents,
,,

1951 -52

absorbed

Future capital requirements.

American

of power.

source

come

of these
subjects in detail, but I will com¬
any

v
**:*•'

in¬

wage

be

by increased productivity and

generation

the

as

we

to

that

creases

million stockholders in this

Atomic

Whether it be in the

just

goods

have in
judgment only to be thankful
40%,

continue

ises down the years.

year.

farm,

knowl¬

for

demand

in

infla¬

quired for capital expansion there
must, down the years, ibe 40 to 50

kilowatt-hours

a

rise

services of

of

This is and will continue to
serious problem, warranting
the close attention of the entire
nation so long as union leaders
a

for automation and what it prom¬

my

projecting the

electricity in

by

mated

cen¬

are now

scientific

new

produce in many fields—includ¬
ing clerical work, engineering de¬
sign and manufacturing methods.
With a projected increase in the
labor
supply
during
the next
decade of only 14% and an esti¬

I say this because, for many

years,

as

of

edge; particularly in the field of
electronics, to devices for the mul¬
tiplication of man's capacity to

ing the. next decade,
try.

precisely
apply'

tomatic n.

the outlook

American

What

.

There is nothing new about au¬
It has simply received
an important boost by the appli¬

ican, whatever his political affili¬
ation, can heartily applaud {that
purpose and endeavor.
%
v
If,

number

a

it, and when? Is it likely to create
widespread unemployment?

development without infla¬

tion.

on

How shall we

does it mean?

have growth

may

we

briefly

very

of them tnat come to mind.

productive investment and so
regulate our supply of money and

age

danger

.

>

tion.

be
ment

110

develop¬

and

San Francisco

will

and

Tan yrancisco

will

we

Stock

STOCK EXCHANGE

BELL

•

SAN FRANCISCO

SYSTEM TELETYPE SP70
wirs lyslwiM

GOLDMAN, SACHS & CO.

DEMPSEY-TEGELER * CO.

the marketing methods

on

Exchange

today. But more important,
develop and test bold

must

ways, probably by combin¬
ing the efforts of a given industry
new

and

all

its

allies in

natural

a

co¬

4 •

ordinated and united campaign of
market development.

^^0

In

Underwriters and Distributors

political,

'

•

•.

-

:

.

_

□ f

short, the challenges to busi¬
ness
management are both nu¬
merous and
arresting. Some are

'

•

■

-Vi

_

State, Municipal and

•

nomic

social,

some

eco¬

technical.

some

But

they all may be summed

up

in the

challenge to
ity to

Corporate Securities

some

and

see

our vision—our abil¬
beyond our own time,

to see the kind of world

we

1

STATE, MUNICIPAL AND
UNITED STATES GOVERNMENT

want

children and grandchildren to
live in.
And we businesmen, as

our

CURITIES

trustees and administrators of the

system by which goods and serv¬
ices are produced in a free world,
can,
by the quality of our per¬
formance,
make
that
world
a
pleasant or a troubled one for

Kaiser &

Co

464 CALIFORNIA STREET

AMERICAN

hundreds of millions of people.
It

is not

easy

to free ourselves

SAN FRANCISCO 20

TRUST

from the
MEMBER
SAN

FRANCISCO

STOCK

pressing problems of the
the
times, and the
responsibilities of leadership re¬
hour.

EXCHANGE

quire
15DQ

Russ

Building

•

San

Francisco




that

more

of

be future-oriented.
I

Teletype SF 172 & 173

But

need

not

our

And I

TELETYPE SF 282

thinking
am

COMPANY
0

BANKING

sure

remind

you that the
are not only the
companies we work for but—quite
simply—the survival of the Amer¬

stakes

TELEPHONE DOuglas 2-74G1

Since 1854

involved

ican way of life.

MEMBER

FEDERAL DEPOSIT

INSURANCE CORPORATION

I

120

The Commercial and Financial Chronicle

(2644)

ture.

He

had

home

that

he

DUTTON

By JOHN

life

We Do for You?

What Can
There is

people if he is going to grow and
prosper in this business.
After he had discovered that I
was in the securities business, the

change that has been

a

taking place in the investment se¬
curities business.
It has been so

gradual that I believe that many
of us who have been engaged in

he had a
who had
called to sell him a mutual fund
monthly investment plan. He said
cli¬ that he didn't give this salesman
that the order because he just couldn't

more

encouraging our
invest in securities
we

are

to

ents

have

definite

a

from

on

him

as

a

me

salesman

a

understand how

is a

there

Although

acquisition.

their

for

reason

visit

told

doctor

young

to individual
investors have hardly been con¬
scious of the fact that more and

securities

retailing

a

man

could call

complete stranger and

indiscriminate

expect him to obligate himself to

speculation, of buying for a "turn,"
or
a
possible six-month profit,

making (what to him was a very

certain

amount

This type

of business is

main

the

of

of

source

without giv¬
opportunity to investi¬
gate the investment, the salesman,
and the firm he represented. When
I replied that I thought this was

revenue

to

of us who used to have a
large percentage of our ac¬

many
very

former

during

investing

periods of active public partici¬
pation in the securities markets.
If

I

am

correct

in

tion, that at last we

this

convic¬

educating

are

people to become investors, with
a planned objective, then
we can
forward

confidence than at any time

the

in

those of
the

to

an

up

who

us

future

Meanwhile, we
opportunity

past.

opening

the

with

look
more

are

are

on

sound basis of

a

mu¬

understanding with our cli¬
ents. The day of the high-pressure
salesman of investments is rapidly
passing and it is the best thing
that could happen to the invest¬
business.

securities

ment

This

was

had

a

doctor

conversation with
who

told

young

a

about

me

his

plans and his problems, and who
also
an

not

related

his

investment
aware

experience

salesman

with

who

that first he must

was

help

aside

investments.

his
told

He

that

a

for

year

he

that

me

knew

he

he

means,

$5,000

investments

about

MEAD,

Sentinel,

Milwaukee

MEANS,

Wachovia Bank & Trust Co.,

nothing
securities

in

and real estate.
want

to

Therefore, he did

impair his ability to

concentrate

his

on

number

one

Northern Trust Company, Chicago

MEYER,

WALTER

Noyes

J.

The

Co.,

&

New

York

Laird

Toronto

activity, the practice of medicine,
cluttering

by

other

his

up

that

problems

with
was not

mind
he

equipped to solve. He agreed with
of invest¬

that the ideal form

me

would

ment

be

would

that

one

J.

Chester,

Company,

Pa.

G.

Alester

Sanders &

Vance,

Newhard,

Boston

Co.,

Harriman

there

the

the
salesman, instead of agreeing and
helping him to do it, replied, "I
am
too busy to spend my time
coming back again and again on
this.

further,

proposition

What

more

do

you

have to

give him the least amount
ever

was

need for

a

The

Doctor Want?

Any salesman who
his

work

from

the

looks upon

narrow

view¬

point of this particular individual
is bound to miss many opportuni¬
ties
for
building satisfied
cus¬
tomers
and
lasting
friendships
people with whom he
business. People today are

among the
much

educated

better

ways

than they

This

young

were

in

many

25 years ago.

discovered,
was
very sound in his thinking
and financial planning.
In addi¬
tion to a thorough medical train¬
ing, his fine mind had absorbed
much practical information on how
he should plan his financial fu¬
doctor,

I

Pittsburgh

Scribner,

it.

MORGAN,

in

would listen to him and

derstand

investment

the

plans

wisely initiated

for

future.

a

He

was

business

he

un¬

had

so

his financial
who

man

the

seeking

was

in¬

proper

vestment vehicle which would
in with his life

fund

serve

of

earning

and

What

did

he

insurance, his

fit
re¬

savings, and his
saving
capacities.

not

want

Cleveland

McDonald-Moore &

david

Mcelroy,
J.

P.

R.

was

some

Co.,

New

Scranton &

McLAREN,

wonderful investment he

a

York

The

Co., New Haven

Cincinnati

Association,

Robinson-Humphrey

Company,

{

Bankers

McLELLAN.

PHILIP

EUGENE

Bruce

&

S.

MORSE,

New

York

FRANK H.*

Lehman

G.*

Co.,

Chicago

Company,
Company,

Hemphill, Noyes & Co., New York
Brothers,

New

York

MORSE, WALTER E.*

York

New

Lehman Brothers,

MORTON, ROALD

& Co., Chicago

Moseley

Trust

MORSE, Jr., CHARLES L.

George K. Baum & Co., Kansas City

F.

Trust

F.*

Fifty State Street Company, Boston

Heller,

G.*

PAT

MORRIS, ROBERT C.

Cleveland

Co.,

&

Blue List

MEAD, ROBERT G.

New York

A.

Publishing Co., New York

I

MOSSER, CHARLES R.

Stone & Webster Securities Corporation,

Smith, Grandpa Again

E.

Bankers

JOSEPH L.

Northern

McNURLEN, PRESTON J.

an

FRANK

MORRIS,

of¬

was

fering, expect him to give him
order, or else.

Philadelphia

Washington

HARRIS B.

McDonald

minutes

what

L.*

Company,

Atlanta

McMAHON,

him

WALTER

MORRIS,

McLINEY, GEORGE J.

telling

G.

Bank, New York

Wellington

MORRIS,

McKIE, STANLEY G.
Weil, Roth & Irving Co.,

salesman to barge in on him from
out of the blue and after 10 or 15

of

Baltimore
F.

Moroney, Belssner & Co., Houston

York

New

STEPHEN G.

McKEON,

EVANS

Investment

&

GERARD

Hanover

The

b.*

Pressprich

Hornblower

&

Weeks, New York

;

Chicago

MOWER, Jr., EDWARD B.
"'Denotes

Mr.

& Mrs.

Newhard,

Serving Southern California since 1927

Cook &

Co., St. Louis

DISTRIBUTORS
o

WagensellerS Durst, Inc.

INVESTMENT

f

SECURITIES

Investment Securities
626 S. SPRING

Bingham .Walter s Hurry,Inc.

ST., LOS ANGELES 14

Member Los Angeles istock Exchange

TRinity 5761

«

TELETYPE: LA 68—LA 15

Harold B. Smith

MEMBERS:
LOS

ANGELES STOCK

AMERICAN STOCK EXCHANGE

DIRECT PRIVATE
Claremont

•

(ASSOCIATE)

WIRE—KIDDER, PEABODY & CO., NEW YORK

Pasadena




Red lands

•

Santa

Monica

•

San

Diego

TELETYPE LA

born Nov. 14 to Irene and Harold

Blake
•

621 S. SPRING-LOS ANGELES

Harold B. Smith, Pershing &
Co., New York City, is the proud
grandpa of James Blake Smith,

EXCHANGE

Pasadena:

70

TRinity 1041

-

224

S. Euclid Ave.—SYcamore

3-4196

Smith, Jr. This is the third
(the first boy)
for

grandchild

Harold who has two granddaugh¬
Debbra May and Lorraine

ters

Smith.

Brooklyn Bankers Elect
BROOKLYN, N. Y.—At the an¬
nual meeting of the Bankers Club
of Brooklyn, William D. Smith,
Assistant
Secretary, Manufac¬
turers Trust Company, was elected

Underwriters and Distributors
.

President.
Also

elected

were:

COMPREHENSIVE

Vice-Presi¬

•

COVERAGE OF THE

dent—George W. Heyne, Assistant

Secretary,
ings

South Brooklyn

Bank;

SOUTHERN

Sav¬

Secretary—Frank

CALIFORNIA

MARKET

W.

Sixt, Manager, Jay Street Branch
First National

urer—George
Insurance

Lester, Ryons & Co.

City Bank; Treas¬
Bundrick,

H.

Life

Officer, Williamsburgh

Members New York Stock Exchange
Los

Angeles Stock Exchange

•

American Stock Exchange (Assoc.)

Savings Bank.
623 S. HOPE ST.

•

LOS ANGELES 17

CORNER WIISHIRE AND

Elected Director

BELL SYSTEM TELETYPE LA

.George
partner

J.
of

DeMartini,
Cohen,

has been named

a

Simonson

tors'

meeting

member of the

a

held

special direc¬

this

MADISON 5-7111

1565 and

1566

week.

NEW YORK CORRESPONDENT: PERSHING & CO.

&

Board of Directors of Guild Films

Company, Inc., at

•

HOPE

general

Co., New York brokerage house,

Qaremont

Hollywood
Red lands

\

MORONEY, ROBERT E.

CUSHMAN

W.

Bank,
;

CHARLES

MORGAN,

Detroit

Co.,

& Co.,

Morgan

McGEE,

Chas. W.

actually

The

Mcdonald, harry a.

some¬

C.

MORGAN,

an

was

L.

Morgan Stanley & Co., New York

Philadelphia

Co.,

&

WINSTON

John C. Legg & Co.,

MORGAN,

BERT

C.

McDonald & Co.,

What this doctor wanted

opportunity to sit down with
the

Baker

Thayer,

Mitchell,

&

J.*

Cabell & Co., Richmond

Branch,

McCURDY, WALLACE M.*

McDONALD,

SIDNEY

MOORE, RODERICK D.»

Exchange, New York

in a
monthly income
growth type mutual fund, this was

Jr.,

Northwestern National

McCORMICK, EDWARD T.
American Stock

Louis

St.

Co.,

Minneapolis

BRUCE

vestment

who
What Did

in¬

an

one

know?"

If

responsibility.

supervisory

&

Deane

Cleveland

Thornton, Mohr & Farish, Montgomery

into

of

Singer,

W.

Jr.,

Miller,

S.

Cook &

MOLANDER,

Ripley & Co., New York

would

his

I.

&

New York

MOHR,

T.

FRANKLIN

,

Richmond

JOHN N.
Marshall, Trimble

Caldwell.

McCarley & Co., Asheville
McCLINTOCK,

Mellen

ANDREW

MITCHELL,

A.*

NATHAN*

J.

York

New

LESTER

Joseph,

Greenville

Co.,

JOHN

McCARLEY, Jr.,

Co.,

Wheat & Co.,

MILLS,

C.

Furman

McCANDLESS,

C.

MILLER,

LAURENCE M.*

ARTHUR

DUNCAN

<fc

MILLER, Jr., L. GORDON

National Company of Omaha, Omaha

McCALL,

Small-Milburn Company, Wichita

MILLER,

McBRIDE, CECIL W.

Paper

York

Co., New

MILLER, CHARLES M.
Mullaney, Wells & Co., Chicago

R.«^

Midland Securities Corp.,

&

MILBURN, GLENN L.*

Wright, Wood & Co., Philadelphia

Scott

Atlanta

MAURICE*

Jr.,

Hirsch

MARTIN

McBRIDE, ALFRED

McG'AGUE,

W.

Co.,

ROLAND*
Higginson Corporation, New York

Lee

McCABE, THOMAS B.

not

&

MERRELL,

MAXWELL, JOHN M*

Hemphill,

CARROLL*

JAMES

Courts

Winston-Salem

McANHREWS,

W.

Mead, Miller & Co., Baltimore

F.

McCORMICK, D. DEAN
McCormick & Co., Chicago

most reasonable reaction on

does

brought home to me
when I

most forcefully last week

within

living

realized

Milwaukee

MATTON, CHARLES

Shearson, Hammill & Co., New York

After taxes he had figured that,

set

MATHISON, GEORGE

MAYNARD,

dependent.

by

118

In Attendance at IBA Convention

part, he went on to tell me that
when he suggested to this sales¬
man
that he would like to look

for
meeting with

tual

set

had

for him that was
designed to give his family the
most protection during the years
when his children were young and

could

page

McCONNEL,

a

public to become investment

advisors

an

who

man

program

a

from

his

give him the greatest possible op¬
portunity for capital growth over
the
longer term, and one
that

counts involved in this sort of so-

called

decision)

important

longer ing him

no

where

and

insurance

up

Continued

could

family
could enjoy healthy suburban liv¬
ing. He had studied the value of
proper life insurance and he had
secured the services of a capable
for

pay

Securities Salesman's Corner

bought a modest
conveniently

Thursday, December 15,1955

^

Corona del Mar

Long Beach
Riverside

Encino
Pasadena
Santa Ana

Glendale
Pomona

Santa Monica

Volume 182

Number 5490

..

.

The Commercial and Financial Chronicle

121

(2645)
MUIR, EDWARD ,D.*
Muir

Investment

MULLANEY,

PAUL

Mullaney, Wells

MULUNS,
A.

E.

MUNGER,

&

&

JACK

San

Antonio

New

L.

Co.,

Chicago

PATTBERG, Jr., EMIL J.
First

Pittsburgh

Securities

R.*

Keith Reed &
Co., Dallas

murphy,
.

h.

&

MURPHY,

Financial

&

New

York

Chronicle,

J.

REED,

Commission,

CARR

REESE,
Securities

Corporation,

PEPPER,

The

Illinois

Nauman,

N.*

&

Co.,

Scott

J.

Detroit

carl t.
Stern, Lauer & Co., New York
W.

Delaware

JOHN

PEVEAR,

ARTHUR

NEWBOLD,
W.

H.

Co.,

Co.,

New

York

York

Newburger,

W.*

&

Dean

Newhard, Cook

PIERCE,

s.

&

Witter

New York

NEWMAN, Jr., A. JOSEPH
Philadelphia Evening Bulletin,
Philadelphia

PIERCE,

NEWTON, GEORGE
G.

H.

Walker

&

M.

Co.,

Dallas

v

&

Co.,

NICHOLSON,
221

N.

Nielsen,
J.

C.

DANIEL

Mid-South

PITFIELD,

F.

W.

St., Chicago
&

U.

Nashville

Co.,

Securities
!

Geo.

Co., New York

Van Alstyne,

NORRIS,

I.

Noel &

O'Connell

&

Smith,

.

&

New

York

v

-

C.

The

Blair

Bond

Assn.

Stock

S.

Bank,

Seattle

&

QUIGG,

D.

Co.,

PARCELLS, Jr., CHARLES
A.

Parcells

Parker

&

&

PARKER,

NATHAN

The

WILLIAM

RAISS,

Jackson

&

Curtis,

Mr.

&

Van

Co.,

G.

&

Co.,

Rand

&

Co.,

St.

Paul

WILLIAM

New York

New

McLeod, Young,

& Mrs.

Kidder,

&

Co.,

Russell

Fulton,

J.

York

J.

Co.,

ALFRED

York

New
J.

Stalker,

JACK

Reid

New

New

York
*

R.

&

Cleveland

Co.,

STARR, III, EDWARD

J.*

Drexel

A.

V.

de

Company,

JOSEPH

New

York

SLOAN,

Tribune,

STEIWER,
,■

.

.

Investment

C.

&

&

Cleveland
H.
New

.

York

A.

Co.,

Richmond

Continued

Association, Chicago

on

page

Co., Cleveland
New York

GEORGE

Corporation,

For

New

Prime

&

of

Dallas

Newsom,

All

White, Hattier & Sanford, New Orleans
Montreal

A.

National

Bank

of

Coughlin

Chicago,

SECURITY

York

New

Philadelphia

&

Poole,
Philadelphia
W.

&

SCOTT,

&

CHARLES

A.

Chicago

New York
Omaha

MURRAY

Stringfellow,

R.

New York

Lynch,

Richmond

Active markets maintained in

A.

.

Pittsburgh

JULIUS

The

Pierce,

Fenner

&

John

CORPORATE & MUNICIPAL

Illinois Company,

C.

F.

SHAW,

&

&

Sherrerd,

WILLIAM

Bond

Sanders

■I

T.*

Philadelphia

S.

New

Buyer,

HERBERT

Vance,

SECURITIES

Co., New York

FREDERICK

Butcher

The

W.*

CRAIG

Eberstadt

SHANKS,

Chicago

Legg & Co., Baltimore

SEVING,

t*S

/V

Beane,

York

SENER, JOSEPH

'

.

H.*

SELLERS, PAUL A.

SEVERANCE,

DENVER (2) COLO.

296

C.*
Co.,

WILSON

Merrill

BANKERS

DN

KEystone 4-3201

Parke,

BUFORD

Scott

New

PetmWiiertrClirisfmsmSic

&

Company,

Group;

JOHN

McKelvy & Co.,

3-6281

COLORADO

Teletype:

MARSHALL

Republic

SEDLMAYR,

Specialty

DENVER,

SCHREDER, HAROLD X.*

SCOTT,

Municipal & Corporation

Louis

Co., Philadelphia

World-Telegram & Sun,

INVESTMENTS

& Company

BUILDING

A.*

Roberts

SCHOENEBERGER,
Central

Try

Telephone:

St.

Co.,

WALTER

Schmidt,

•

A.

Schapiro & Co., New York

First

Municipal and Corporate

V:/V\;v

SCHANCK, Jr., FRANCIS R.
Bacon, Whipple & Co., Chicago
MORRIS

Rocky Mountain Securities

Both

SAVARD, J. ERNEST*
& Hart,

Distributions

York

SANFORI), Jr., JOHN B.

SCHMIDT,

Co.,

BEST ADVICE

THE

P.*

Garrett-Bromfield & Co.

York

Member Midwest Stock Exchange

I.
&

Co.,

New

York

Phone AC 2-8621

Security Bldg.

SHEAFFER, THEODORE C.
Wurts,

Dulles & Co., Philadelphia

DN

SHEFFEY, JOHN M.
Natl.
New

Assn.

York

Investment

Teletype DN 76—Municipal Dept.

Companies,

557—Trading Dept.

i

•;.!1

Sons,

WILLIAM

Wheat

C.*

Bankers

.

P.*

Kraus,

FREDERICK

Brown

STEVENS,
J.

DUDLEY

&

I

R *

Chicago

JAMES

Eurge

Alex.

Company,

,

B.

Co., New York

GEORGE

Economist,

Ball,

Management

MASON

Allyn &

STEARNS,

Milwaukee

Company,

'

Philadelphia

Jr.,

••••,

Washington

WILLIAM J.*
Fund

Co.,

"

The

G. EDWARD

Milwaukee

C.

STEARNS,

R.

Herald

&

STARRING,

Houston

&

Brothers,

SCHWERENS,




The

SMITH,

Securities

Chiles-Schutz

KPvflAiu*n*724 SEVENTEENTH STREET

ALFRED

Mrs.

Alfred

?

H.

Corporation,

SCOTT

Distributors

a

JOHN

Peabody &

STAPLES,

II, ANDREW G. C.

SCHUTZ,

INVESTMENT

York

Trust

York

SLEZAK,
New

G.*

Fusz-Schmelzle

Underwriters &. Distributors

etOVNO HOC*

HENRY

CRAIG

Bankers

New

SCHMELZLE, ALBERT M.*

Chicago

ALFRED*

Securities

With

Corporation, New York

SLEVIN,

SCHLUTER, HAROLD J.

Weir & Co., Toronto

Peabody &

Philadelphia

Co.,

York

New

Drexel

Phone MA

V

York

York

Forgan & Co.,

SCHMIDT,

Local

New

Alstyne, Noel & Co., New York

Gottron,

M.

York

RATCLIFFE, MYRON F.
Bache

Kidder,

Providence

Co.,

Jr.,

Higginson

STALKER.

Co., Philadelphia

SCHAPIRO,

HENRY*

Boston

City

W.

CLARKE*
&

&

Hirshberg, Atlanta

STALKER,

Kansas

Simmons, Chicago

Walker

SIMONSON,

York

Bank, New York

ROBERT

Stroud

Sanders
&

THORBURN*

RAUCH,
♦Denotes

H.

Co.,

SANDERS, Jr., JESSE A.*

L.
Wood

RATCLIFFE, J,

Coppet & Doremus, New York

G.

&

Lee

G.

Reserve

Lehman

Albuquerque

JOHN*

RAND,

PARRY, SIDNEY L.
De

E.

Burnham

Parker Corpbration,

SIMONDS,

&

York

W.*

STAFFORD,

E.*

RICHARD

Blunt Ellis

J.*

ROBERT

Savard

A.

Bros.

SIMPSON,

Merle-Smith,

Dominion

Indianapolis

K.*

New

Meeds,

New

RUTHERFORD,

F.

Raffensperger, Hughes & Co.,

Kay, Richards & Co., Pittsburgh
PARKER,

&

RUSSELL

New

SPENCE, W. FREDERICK
Townsend, Dabney & Tyson, Boston

Washington

National Securities & Research

&

ALFRED

Department,

Hutzler,

B.

Biddle

Norris &

O.

&

RUSSELL, JAMES N.*

Davenport

RAFFENSPERGER,

Detroit

Stern

RUSSELL, JAMES A.

A.

Co.,

Co.,

Yarnall,

WICIvLIFFE*

SIMMONS,

Co., Chicago

Bros.

K.

Merle-Smith,

&

Glore,

Co.,

LEO

Harold

Corporation, Boston

Tribune, New York

RUDOLF*

HARRY

SPEAS, J.

Hayden, Stone & Co., New York

MIDDLETON*

Asiel

EARL

York

New

A.

Craigie & Co., Richmond

Salomon

York

New

Treasury

SIEFERT,

SAMPSON

Bissell

S.

SHREVE,

Orleans

&

Co.,

York

QUIST,

PARKER, AMORY*
The

&

ROWE,
Boston

,

Antonio

U.

Jr., DON*

SAGE,

PAINE, Jr., HUGH E.
Abbott, Procter & Paine, New York

SHREVE,

Texas

Exchange Firms, New York

Webber,

Quinn

PANCOAST, JOHN W.*
,
Dewar, Robertson & Pancoast,

Charles

Dick

&

Co.,

MARK

W.

SNYDER,

Keystone Company, Boston

TOWNSEND

Federal

QUINN, ARTHUR P.*

Minneapolis

New

JULIAN

F.

SHOLLEY, S.L.*

E.*

Herald

SMITH,
Cleveland

Co.,

&

SMUTNY,

Shields

Fidelity Trust Company, Pittsburgh

ROUSE,

Hartford

Distributors,

JAMES

Paine,

York

New York

Hutchinson

&

;

RAYMOND

Weeden

SHIELDS, CORNELIUS*

Dominick, New York

Jones,

Dallas

J.

SHERBURNE, HAROLD H.
Bacon, Whipple & Co., New York

Richmond

H.

York

Quail

Chicago

'

Company,

&

RUSSELL, P.

New

Allison-Williams

&

Bank,

Prescott, Shepard

R.

Strudwick,

JAMES

York

New

Dick

OWEN, IRA D.*

San

Dominick

ROSS,
York

QUAIL, JOHN J.

New

&

National

G.

Nesbitt, Thomson & Co., Montreal
SMITH,

SHEPARD, ROBERT O.*

ROSENBERG, SAMUEL H.

Schoellkopf, Hutton & Pomeroy,
New

Republic

Ashplant & Co., New York

Laird,

GEORGE*

Fund

B.

ROSE,

PYLE, RAYMOND W.

Inc., Daytona Beach

Co.,

Buyer,

D.*

New

Co.,

F.

ROSE,

PUTNAM, HENRY W.*

Simmons, Chicago
&

&

Putnam

h.

Co., Chicago

BARRON*

Co.,

ARTHUR

Anderson

SMITH, E.

Vance, Sanders & Co., Boston
SHELTON, LOCKETT*

Trubee, Collins & Co., Buffalo

New York

ALBERT

Putnam

OSTRANDER, LEE H.
William

&

SHELLEY, WILLIAM F.*

F.

ROBINSON, EDWARD
Schwabacher & Co.,

ROOSEVELT,

National

PUTNAM, Jr.,

OSGOOD, GILBERT II.

OTIS,

WILLIAM

Hopkinson, Jr.

Baltimore

ROBERTS, WILLIAM J.
Glore, Forgan & Co.J Chicago

ROGERS,

Denver

Stieglitz,

PUTNAM,

Company, Milwaukee

Nelson O'Rourke,

Blunt Ellis &

&

Sons,

ROBERTS, MALCOLM

McMaster

Barney & Co., New York

Walston

O'ROURKE, T. NELSON
T.

Louis

PURKISS, ALBERT C.*

McKinnon, New York

&

New York

St.

M.

Co.,

Seattle-Eirst

T.

orndorff, harvey
McCormick

&

&

ROGERS, Jr.,

Co.,

E.

>,

ROGERS, DONALD I.

PROSSER, MALCOLM

.'T.-

Company, New York

WALTER

Marshall

&

Company,

CHANDLER

Scharff

V.*

JAMES

PROSNITZ,

O'KEEF, ROBERT H.*
The

Simon

Halle

Co.,

DANIEL

Northern Trust

Chicago

POWERS, ROBERT A.*

O'CONNELL, HOMER J.

Thomson

M.

Trust

Schapiro & Co., New York

RODDY,

Leedy, Wheeler & Alleman, Orlando

Hemphill, Noyes & Co., New York

Q'HARA,

Co.,

MONROE

San Diego

ROCKEFELLER, Jr., AVERY

Washington

A.*

B. Gibbons & Co.,

Boettcher

noyes, Jr., jans en*
Hemphill, Noyes & Co., New York

O'DAY,

York

POWELSON, RALPH J.

Greenville

noyes, blancke*

Homer

New

World Report,

&

&

ROBSON, FREMONT W.

Co.,
M.*

ROBERT

POWELL,

Co.> New York

M.

Norris,

Nashville

POPPER, ELVIN K.

C.*

EDGAR

Edgar M.

Co.,

C.

&

News &

POOLE,

or

*NIX, ALLEN J.
Riter &

S.

Cruttenden

Corporation,

Charlotte

NOEL, RICHARD

WARD

Pitfield

Bank

J.*

Brown

A.

ROBINSON,

Chicago

B.

Securities

CHARLES

PODESTA,

NISBET, Jr., W. OLIN
Interstate

C.

PLATT,

einer

Bradford

Inc.,

Republic Company,

PILCHER, MATTHEW

Chicago

LaSalle

Carrison, Wulbern,

Central

St. Louis

E.

York

W.*

Garrett-Bromfield & Co., Denver

C.*

Jacksonville

A.

Co.,

NICHOLS, DONALD
Blair

Pierce,

Pittsburgh

New

CREIGHTON*

ROBBINS,

PIGOTT, JAMES M.

CLYDE

J.

Alex.

&

IRVINE

National

RIEPE,

C.

Pierce

Co.,

Irving J. Rice & Co., St. Paul

Los Angeles

Co.,

'

Bank,

&

RICE, IRVING

Bank, New York

CHARLES

Rauscher,

Co., St. Louis

&

Dodge

First

PHILLIPS, RALPH E.*

L.*

National

Oklahoma City

NEWBURGER,

Newburger & Co., Philadelphia

N.*

RHOADS, PHILIP J.*

Co.,

First National City

Share Corporation,

Union-Tribune Publishing Co.,

Company, New York

Loeb

&

BRIAN*

REYNOLDS,
New York

PFEFFER, DELMONT K.*

chapin

Julien H. Collins

Company, New York

Corporation, New York

F.

Clark,

D.*

NEWBORG, LEONARD D.
Hallgarten & Co., New York

newhard,

Hal H. Dewar

1946-47

WILLIAM M.

REX,

PEYSER, BENJAMIN F.

S.*

FRANK

1947 -48

Loeb, Rhoades & Co., New York

Mellon

P.

WILLIAM

Trust

M.

REUTER,

WILLIAM

Irving

Newbold's Son & Co., Philadelphia

Jr.,

1948 -49

McDowell, Chicago

M.

HERBERT

Discount

W>

Knickerbocker Shares,

J.

New

JOHN

Carl

Cleveland

Peters, Writer <fc Christensen, Denver

Camden

NEUMARK,

&

Co.,

GERALD

PETTIT,

Hentz

&

D.

Electric

EUGENE

REPP,

&

Pershing &

neuhaus, joseph r.*
Underwood, Neuhaus & Co., Houston
H.

PRESIDENTS

Indianapolis

F.

Perko

PETERS,

LINTON*

Distributors,

PAST

RENO, JOHN W.*

Paper Company, Chester, Pa.

F.

PERSHING, F.

Naumberg,
NELSON,

Blosser

Indianapolis Bond

WILLING

G.

PERKO,

P.*

McFawn

IBA

REISSNER, FRANK L.
Clark, Dodge & Co., New York

Company, Chicago

ARTHUR

Louis

Newhard, Cook & Co., St. Louis

Nashville

MURRAY,

St.

J.*

PHILIP

General

Co., Chicago

rECK, ANDREW F.

NAUMAN,

JOHN

Straus,

Stifel, Nicolaus & Co., Chicago
Murray, Leonard a.
Piper, Jaffray & Hopwood, St. Paul
Jr., WILLIAM

Edwards & Sons,
JOHN

REED,

&

J.

GUY*

Baker, Watts & Co., Baltimore

J.

O'Brien

Cumberland

D.

G.

W.

REDWOOD, Jr.,

C.*

Exchange

ALBERT

John

PAYNE,

JOSEPH

A.

Corporation,

HAROLD

Washington
PAYNE,

e.

Commercial
New York

Boston

PATTERSON,

ANDREW

Nesbitt, Thomson & Co., New York
REDMAN,

P.

Co.,

RAYMOND,
-

York

.

FREDERIC

Masten

PARSONS, ROBERT*
Auchincloss, Parker & Redpath,

.

Corp.,

Denver, Colo.

122

122

The Commercial and Financial Chronicle :.

(2646)

VARNEDOE,

SAMUEL L.
Varnedoe, Chisholm & Co., Savannah

121

Continued from page

VIALE, CHESTER
L.

In Attendance at IBA Convention
BTEVENSON,

TODD, II., WILLIAM

C.*

O.

New York

TOMASIC,

3rd,ROBERT
Investment Bankers Association,

Thomas

Washington

The

STEWART, T. FRITZ
„
Southwestern Securities Company, Dallas
_

Equitable
York

New

&

Marine

E.

Newark

B.

Taylor

L.

York

New

Blosser

Straus,

Dean

EATON

ColumbUi

JEROME

...

Co.,

&

Louis

St.

Bros.

•

Merrill,

New

Exchange Bank,

York

New

& Co.,

Theis

&

St.

Sons,

Louis

S.

Harry

THIERIOT,
Carlisle

Theis,

St.

Louis

CHARLES

Jr.,

van

HAL*

American,

EMERSON

J.

B.

INGEN,
J.

Van

VAN

Mr.

&

York

York

&

New

Co.,

J.

York

M.

Mrs.

SLYK,

Journal

of

II.*

CAREL

YV.
.

&

Co.,

•

J.

S.

Moseley

White,

II.

F.

Minneapolis

First

Jr.,

&

&

"

"

^

D.

Teletype SE 489

.

Deposit Insurance Corporation

Corp.,

elusive, at

Denver

the

of

par

to yield 3.50%

become

group

Dec. 8

on

B.
affiliated

cates
tion

Company, First
Building.

Corporation,

associated

•vard.
New

York

.

3924

with

are

of

the

Interstate

issue

&

Bouie-

&

Commerce

steel

be

to

than

in

to

$3,285,035.

the

New

& Co.; Freeman
4

& Co.

<fc

-i

York

Sanford,

New
-

Co.,

Walker

..

.

-J*

-

Orleans

V

-

HESS

E.*

&

:

—

Chicago

McFAUL

&

Co., St. Louis

THOMAS

Whiteside,

INVESTMENT

West

&

SECURITIES

Winslow,

Boston

YVI.DENMANN,
Carl

M.

HANS

American Bank

A.

Portland 5, Oregon

Bldg.

Rhoades & Co., New York

Loeb,

WIESENBERGER, ARTHUR
Arthur

UNDERWRITERS

Wiesenberger & Co.,

WILEUR,
Stein

WILDE,

BROKERS

&

&

DISTRIBUTORS
CORPORATE

E.

BENJAMIN

Hutton

&

Baxter,

Williams

MUNI CI PAL x

SECURITIES

'

G.

Loeb

Investment Securities

Union

Securities

WII SON,

Stanley




•

Spokane

Dean

Eugene

•

Witter

WITTER,

York

Pacific Northwest Securities

& Co.,

New

New

York

York

&

Witter

&

JAMES

WILCOX

WOOD,

DAVID

BUILDING

Chicago

T.

&

1929

York

M.

Co.,

J.

Stone

New

Co.,

PORTLAND

Co.,

Eoston

4,

OREGON

W.*

Bell

Zuckerman, Smith & Co., New York

Olympia

INCORPORATED
ESTABLISHED

WILLIAM

Hayden,

BLANKENSHIFY GOULD & BLAKELY

B.

YVOLL,; AIBERT

Telephone MU. 1900
•

,

New

YV.

Press,

JOSEPH

WOLFF,

Portland

York

-

WINSLOW, SAMUEL R *
|
Winslow, Douglas & McEvoy, New Yor*'

Dean

Teletype SE. 482-673

New

*

RADER

Associated

WISE,

SEATTLE 4

Cleveland

Co.,

Corporation,

WALTER

Morgan

New

York Stock
Exchange, American
Exchange (Associate), Chicago Board of Trade

Co.,

&

WILSON, H. YVARREN*

YVINGET,

FOSTER 8c MARSHALL

D.

D.

&

ALFRED

Newburger,

AVENUE

254

Co., New York

YVARREN

WILSON,

and

SECOND

Teletype—PD

Washington

YVILLIAMS,

820

Bell

Security & Trust Company,"

WILLIAMS,
W.

Stock

M.

Philadelphia

Co.,

WILLETT, JAMES F.
American

MEMBERS:

Baltimore

Boyce,

BERTRAM

Janney

New York

A.

LeROY

Bros.

M.*

.

,

„

^

.

-

.Wood, King & Dawson, New

York;".A--;,

.

'
•

Co.;. The Illinois Co. Inc.; and**

McMaster Hutchinson

■ v

.

v

offering are:

:

Co.,

*;

v

-

Houston

-•

by

estimated

boxcars,

secured

-

G.

<fc

certify—|

.

Co.,

*

bid

a

V";
is

R. W. Pressprich

•

,

subject to the authoriza-»'-f*

Associated

California

Wilshire

on

Commission.

ANGELES, Calif.—Albert
and Henry Kutner are

to

awarded

99.319%.

cost not less

now

was

Issuance and sale of the

Louis

—

maturing

C,

maturity. The issue

Colo.

has

series

B.*
<fc

RR.

trust

annually Jan. 1, 1957 to 1971, in-

Friedman

Hattier

Chace,

Pacific

equipment

H.
v' >-,
Corporation, New York

JOHN

H.

certificates,

L.

Mountain

450

LOS

York

Securities

WHITE,'KELTON
G.

serial

Two With Calif. Inv.

H.

WHITESIDE,

Missouri

of

3V2%

(Special to The Financial Chronicle)

Boston

B.

White

Reynolds

625,000
Co.

The

S.

New

IIARRY

White,

Robert

—

with

Securities

National Bank

xM.*

FRAINERD

White

WHITE,

Colo.
now

*

GILFxERT*

YVHITE,

this

Co.

&

Halsey, Stuart & Co. Inc. and
associates, on Dec. 9, offered $2,- •'

Building.

Investors,

Boston

B.

is

Weissman

York

YVHITBECK,

with

in

Inc.

Equipments Offered

stores

with Shaiman and

,

York

Distributors,

Webster

six

Missouri Pacific RR.

(Special to The Financial Chronicle)

London

J

New

Co.,

in

gas

northeastern

Halsey, Stuart
offering were:
Inc.; New York
Hanseatic Corp.; Clayton Securi-ties Corp.; and Thomas & Co.
Co.

Stroud

Joins Shaiman & Co.

York

Bank,1 Chicago

..WHITE,'--CHARLES

R.

States
Club

GRADY*

Fund

in

Associated

&

States.

Knodel

B.

B.

natural

Massachusetts.

to

WHELPLEY, GORDON B.
Goldman, Sachs & Co.,

Chas.

loca¬

developed

franchised

33

and

company's business is prin¬
that of the
distribution

saleV of

communities

independent operators

•DENVER,

V.*

Corpn.,

CHARLES

&

YVHITE,

five

New York

Wells,

GERALD

First

of

by

properties

gas

-,;

1953,

(Special to The Financial Ch-onicle)

York

Bank, New York

II.

Wertheim

New

Shops has also

DENVER,

CHARLES

Stone

inventories,

With Mountain States Sees.

Co., New

GEORGE

Putnam

WEST,

and

net

Boston

New

Co.,

National

YVERLY,

the

ALLAN

&

WERNER,

Washington

in

RUSSELL

YVENDT,

BOND DEPARTMENT

York

THEODORE

Securities

Andrews

U. S. Government Bonds

Shops

chain

a

New

II.

Co.,

&

Hanover

WELLS,

use

corporate purposes.
now
own
and op¬

owned

Co.,

DOUGLAS

WELLES,
The

The

working capital and

Gob

ROBERT

Jr.,

Midland

Municipal Bonds

and

of

cipally

selected

Jan..

on

of Beverly Gas & Elec¬
Co., Gloucester Gas Light Co.
Salem Gas Light Co.

s.xare.

increase

the

incor~f

of Oct. 1,

as

? •'

business
tric

per

to

in

Shops

1953, and,

acquired

play clothes and shoes.

Ealtimore

Corporation,

&

Stearns

Bear,

Gob

at $1

stores

F

&

Hutton

WEI DON,

r

»

Philadelphia National Bank, Philadelphia

Commerce, New York

28,

erate
two
retail
Gob
Shops in
Providence, R. I., and three in
Rochester,
N.
Y.
They
carry
snorting goods, camping equip¬
ment, men's and boys' work and

S.*

GILBERT

Weld

YVEHRHEIM,

MIKE*

of

intended

new

v

*

"

.

was

porated in Massachusetts

Michigan Corporation, Detroit

YVEIIMANN,
York

New

]■ :•

Member Federal

Birmingham

WEEKS, Jr., ROBERT S.
F.

the

System, the V

North Shore Gas Co.

tions and for

Cleveland

Co.,

WILLIAM
of

a

from the sale,:

New England Electric

City

other general

York

Co.,

Co.,

is

Gob

Lombardo,

Securities

First

Management

BERNARD

&

cents)

add

W.

New

&

30

to

A.*

&

bid "of

on

The net proceeds

Shops Common

proceeds

York

MYRON

YVEINTRAUB,

Telephone Main 3131

It

York

WEED, Jr., WALTER H.

E.

Seattle 4,

(par

York

New

PAUL

&

to

7

of the bonds will be used to
repay
bank loans and advances from the'

York

H.*

Kansas

America, Inc.,

SEWELL

C.

WEICKER,

State and

New

WILLIAM

Dain

Union

Co.,

New

Co.,

&

Nordeman & Co., New
City, is offering publicly
299,000 shares of common stock

L.

Co.,

Co.,

Watts

WEBSTER,

Chicago
Jr.,

&

Jr.,

Baker,

&

Denver

Bruns,

Boston

C.*

MILES

Clark

WATTS,
New

Co.,

York

Co.,

Co.,

Jr.,

Smith

Fahey,

Dillon

awarded

was

Dec.

on

100.02%.
&

H.*

Stock Offered at $1

Company,

■■■■..'■:

&

New

WATTERSON,

New

Co.,

Ingen

Nashville

B.

&

issue

parent company.

Sob

R.

&

Co.,

Eldredge

A.

Shares

6

YVATSON, HARLEY A.

M.

This

E.

Sullivan

VICTOR

Zahner

Bank,

ROBERT

WATKINS,

Dallas

PAUL

HAROLD

ZAHNER,

Security-First National Bank,
Los Angeles

Corporation,

Shore Gas Co. 4% first
mortgage '
bonds, series B, due Dec. 1, 1975. o.

Pa.

group

Eastman,

,

JAMES

&

Chester,

ALEXANDER

,

York

EDWARD

Kidder

Blair

Cleveland

Turner,

Ltd.,

HEUKELOM,

Kuhn, Loeb & Co., New York
♦Denotes

M.

Company,

IV,

Robinson-Humphrey Company,

YOUNG,

B.

■„

Paper

Bosworth,

Hartford

New York

■

Morgan

Stubbs,

Corporation,

Chicago

VAN

TIIORS,

A.

C.*

Wiesenberger

Television

Chicago

P.

WEED,

York

Jacquelin, New

&

THOMPSON,

Dec. 9, publicly of¬

on

fered at 101.375% and accrued in¬
terest an issue of $2,500,000 North.

Inc.,

Wulbern,

Atlanta

Ycyrk

C.

Peabody

WATERMAN,

Co.,

Hanseatic

&

Buyer,

LLOYD

WARREN,

ARTHUR

Dickson

New

Chicago

Moines

YVARREN,

>

VALENTINE, HENRY L.*
Davenport & Co., Richmond

H.*

Des

J.

UNDERHILL, ARTHUR J. C.

HARRY

Mrs.

With

Halsey, Stuart & Co. Inc., and
associates,

B.*

GEORGE*

WARREN,

F.*

EDWARD

Co.,

RICHARD

National

Kidder,

J.

&

Lullock

UHLER,

Arthur

THEIS,

.

K. P.*

&

Scott

Co.,

New

JAMES

WARING,

FRANK

Guerin

Calvin

York

New

R.

Albert

York

Carrison,

10 L MANS,

&

Co.,

Bond

Third

Boyce, Louisville

UFFORI), HENRY

L.

Brothers,

Corporation,

EDWARD

WYANT, PAUL

The

&

WARDEN, FRANK

York,

Eppler,

Jr., CHARLES V.
Grant

B.

Securities

YEARLEY,

York:

New

Central National Bank & Trust

OLIVER

York

New

&

WARD,

S.*

HARRY

TIIEIS,

The

York

C.

Turben

Chicago

Company,

LOUIS

WANDERS,

.

TURNER, JOHN YV.

ROBERT

York

New

Co.,

Jacksonville

Co.,

Trust

Elyth & Co.,

Digest, New York

New

<fc

Jr.,

TURNER,

Philadelphia

Lehman

Co.,

Pierce,

S.

&

Walker

WAI PERT,

'
Charlottesville

E*

H.

Bache

RAYMOND*

TURBEN, CLAUDE

F.*

Girard Trust Corn

Thackara,

*

P.*

Baker,; Weeks & Co., New York

TERRELL, ALLEN M.

THAYER,

H.

EUGENE*

TSOLAINOS,

Witter & Co., San Francisco

TIIACKARA,

&.

Bank,

Dealers

Hutzler, New York

McManus

YVALKER,

Co., Philadelphia

JEROME

TRUBEE,

f

Dempsey-Tegeler

Halsey, Stuart Group
Offers Utility Bonds

St. Paul

H.

&

OSCAR

Jr.,

YVULBERN,

WALLACE, DARN ALL

Trubee, Collins & Co., Buffalo

Sweney Cartwright & Co.,

L

KENNETH

Southern

Texas,

GRAHAM*

Joseph

Troster, Singer & Co., New York

LOWRY

TEGELER,

&

&

Forgan

Mercantile

Towbin Co., New York

COLEMAN

TROSTER,

Boston

Eros.

CHARLES

Glore,

/

Rothschild & Co., New

F.

Stein

Keystone Company,

TAYLOR,

of

& Co.,

Bradford

YVOOD,

Company

WALDMANN, GEORGE R.

S.*

National

Tripp &

JOHN*

SWENEY,

VRTIS,

B.

WILLIAM

TROST, MILTON

Corporation, New York

American

SWANEY,

Salomon

BELMONT*

Clark

W.

TRIPP,

HENRY*

STRAVITZ,
Swiss

Lynchburg

W.
McDowell, Chicago

<fc

York

New

Co., Montreal

Unterberg,

Investment

Co.,

&

E.

TRIGGER,

FREDERICK

STRAUS,

C,

E.

Wood

E.

Savannah

YVALKER,

TREUHOLD,

D.*

STRADER, LUDWELL A.

Strader,

D.*'

Investment

GLAIIN, THEODORE*

von

Company, Pittsburgh

ARTHUR

Peoples

Company,

Co.,

Pitfield &

C.

TRAINOR,

Philadelphia

FRED

H.

HENRY

TOWNSENI),

H.

Co.,

Trust

York

Company, New

EDWARD

Stokes

STONE, Jr.,

J.

*

Dallas

Robinson-Humphrey Company,

TOWBIN,
C.

Fidelity Union Trust Company,
STOKES,

W.

DONALD A.

WALTER

WOOD,

Co., New York

&

EUGENE

Central

Atlanta

Securities Corporation,
I

Guaranty Trust
STOHL,

&

TORREY,

D.

RAYMOND

STODDARD,

VINYARD,

ANTHONY E.*

TOMPKINS,

•

STITZER,

Loeb &

Kuhn,

STEVENSON,
•

Rothschild

HAROLD

Harold

.

Stevenson & Co.,

Bacon,

F,

WOOD,

YV.

Thursday, December 15,1955

System Teletype PD 280

I

;

Volume 182

Number 5490

.

.

The Commercial and Financial Chronicle

.

(2647),

Continued jrom page 24

goes down

the

case

can

of the credit
operation it

profitwise.

Instalment Sales Credit
credit.

As.

pointed

above, the revolving budget

allow

out

allowed to choose his limits with
very wide latitude.
BuV unlike
the former

plans,

terms

not

are

graduated?-they

are generally 6,
months, according to clas¬

24

sification of goods.

it

cAedit,

eralized

-

noted
of

But cost considerations
may

e

equally important to them. It
ay be that in this revenue pro-

ucing

segment

epartment

of

retail

year,

would

s

be

of

the

can

has

ecessarily,

so

be

found,

that

In

ourse,

lans,

if

the

even

inclusions

epted,

has

is

the

a

Of

these

new

result

of

of
ac-

subtle

very

level

service

harges. Under the revolving budet credit plans, service
charges
re
in many instances Wz%
on

balance, which is a
high pure rate of in-

arkedly
erest.

stores

conservative

ery

have

been

about

utilizing
nd extending instalment credit;
herefore, the volume^of instal¬
ment credit granted(and outtanding) relative to total sales
been modest.

as

hat

This has meant

not

only have department
discouraged large unit

tores

redit

extensions,

estricted

but

they

have
Therefore,
tb be quite high,

total credit.

riiUcosts tended

the basis of research

is

author,

it

done by

is

fairly evident
at the cost of extending instalcredit

ent

and

learly stand

on

servicing it
its

can

only if

own

stalment sales and their derived

utstandings are
ntage of total
verage

higher

a

perr-

sales,«than- :the
medium-sized•> or large

epartment stores have-been
It is most

tomed to.

ny department store

udying

the

ent credit

ude
me

2 A

ther
the

that

of

flat

of

its

relatively
business

charge

is

percentage

instal-

a

con-

does

volnot

made—

percentage

unpaid balance.

may

turn,

can

tion

and

tive

interest

prime

rate

is

of

measure

not

—

that

affect

always

interest

the

true

costs.

were

view

of

in¬

and
was

the

trends

the

tend

seasonal

to

could

make

sample of credit sales was
analyzed according to size, num¬

a

established
was

This

and

*

consumer

intensified,

it that much

exploitation of instalment
selling may be designed to

retailers

both

—

and

the

average

merchants.

market

which

can

difficult

more

SANTA

John

partnership in J. A.
Co., 132 South Main

Hogle &
Street, members of the New York
Stock Exchange and other lead¬
ing Exchanges.
Mr.
Bagley is
General Manager for the firm.

Flynn Opens

note

that

counter

the

Hamilton Management

M.

BARBARA,

Branch

Calif.

Flynn is engaging

—

in

(Special to The Financial Chronicle)

a

BOSTON,

3680 San Gabriel Lane.

opened

Mass.

Management

Mr. Flynn

previously with Coombs and

was

that

Richard T. De Conto

is associated with the

new

branch.

cycli¬

WE MAINTAIN

ACTIVE TRADING /AARKETS

It may .be added,
unfortunately the

PACIFIC NORTHWEST SECURITIES

financial ^aeeds of the retail or¬
ganization often dictate the .-atti¬
tude

a

no

longer lie in the

area

of

sub¬

A

further

indirect

UNDERWRITERS—DISTRIBUTORS—DEALERS
Nation-wide

though it
how

is

difficult

to

tell

by

much.

reputable

the expense ratio.

competition

This

can

mean

one thing, an increased profit
rate, for it is generally accepted
and statistically demonstrable that
there is a rough linear relation¬
ship between expenses and vol¬
ume.

That

is,

the

expense

gressive

promotion
retail

been

unimportant. If the
competition

these
both

or

be

T

-

INVESTMENT

Members

TELEPHONE

CA 8-8261

SALEM

•

San

SECURITIES '"

Francisco

Stock

Exchange

813 S. W. ALDER

TELETYPE

PORTLAND 5, OREGON
EUGENE

MEDFORD

•

•

PD 15S

■

VANCOUVER, WN.

by

relatively

to

however,
may

Specialists in Securities

retaliate

promotion

Continued

¥

wire

Terms

institutions

forced

through the

ratio

credit

McManus

present terms

continues,

financial

choose

of

outlets.

has

Jos.

Zilka, Smither & Co., Inc.

and

have not been compelled to
cope
with effective industry-wide
ag¬

If this is so, then a
happy occurrence may be
anticipated, namely, a lowering of
very

on

|

expan¬
development, and as
sionary effect may be foreseen.
competition intensifies, new sell¬
Until recent years,
lending com¬
ing devices are eagerly sought.
panies
(non-selling
consumer
The recent trends in
department credit organizations) such as com¬
store instalment credit
promise to mercial banks, sales finance com¬
increase the volume Of sales, al¬ panies, and small loan
companies,

urban branch

coverage

on page

and

of the

124

Pacific Northwest
J

<T4-

'V

li

UNDERWRITERS
*

v

DISTRIBUTORS

*

$

DEALERS

FIRST
INVESTMENT

i

INVESTMENT TRUSTS

NATIONAL BANK




of

■

SECURITIES

CORPORATE

MUNICIPAL
SINCE

Portland!

U. S.

STOCKS

,

L

CA

BONOS

1927
Portland

;

OREGON

A

BONDS

National Bank Building

8-1318

has

branch office at 127 Fre¬

a

mont Street.

Company.

Hamilton

—

Corporation

on very narrow

and with

Jan. 1 will be

to

securities business from offices at

tpward'credit. In a period of
margins stringency,
therefore, credit might
stringency of working even be
tightened to depress out¬
capital, can not generally afford
standings and provide more cash
to finance the new liberal
plans. to meet the stores' financial
needs
It may be that the point has been
brought on by a falling volume
reached when innovation
profits of sales.
k
;
operating

on

admitted

(Special to The Financial Chronicle)

outstandings and sales
Likewise, as sales
outstandings and
balances decreased, terms

however,

houses;
retailers,

cutting

CITY, Utah—Ed-,

and

would be eased.

to the inroads of discount

price

J. ML

in

as

slumped

plans is partial retaliation

these

sales

mitigate

terms

It'may also be that the promoting
of these

partnership.

increased.

traditionally

non-credit

Ex¬

1, will admit
Gittins, Earl W. Godbold,
Jr., and Edward J. Lambur, Jr., to

ing instalment sale credit tradi¬
tionally used by retailers, there
would be a tendency on the
part
of credit departments to
tighten

paying

calculated.

protect, if not increase, the share

for

the

Stock

Jan.

on

LAKE

Bagley

built-in brakes. Thus, under
the conventional plans for extend¬

of market at the
expense of other

credit

changes,

Midwest

SALT
ward N.

cal

account, and then an add¬
(an additional sale made to an

already

of

cyclical fluctuations
in expenditures on durable
goods.

new

credit

of

be

and

Rolla J.

Furthermore, the insta¬

type, etc. Costs It may be well to
step of processing, first new plans have no

account)

LOUIS, Mo. — Dempsey& Co., 10th and-Locusts
Streets,
members
of
the- New

significantly

patterns

months,

each

on

alter

bility of the volatile durable goods

in

quate

for

to

ST.

York

Bagley to Be

J. A. Hogle Partner

Tegeler

department stores and other retail
markets.

sector

of

cumulative debt

purchased by cash.
It
pointed out earlier that this

credit, was the cost to make an
additional credit sale, that is, ex¬
tend an additional loan. An ade¬

ber

a

to

debt—this

E. N.

Admit Three Partners

con¬

tend

those

could

instalment and

recent

debt

There may, furthermore,
be
some
substitution
between
goods commonly bought On credit

erally does in
in

those

—

in

consumer

Dempsey-Tegeler to

hold¬

process!

central credit opera¬

a

users

are

may accelerate

Jay N, Whipple

Folger

the

of

debt

debt

who

sumers

especially diffi¬

cult in that

view

between

further incur

rev¬

ings. A modified break-even point
analysis was developed, and both
direct and indirect costs
cluded. This was

relation
and

ers

Total

compared to total

In

Michigan Survey Research Cen¬
findings that there is a posi¬

the

John Clifford

This, in
saving-consump¬

patterns.

rate

Charles S. Garland

in the

ter's

of

*

these

consumers, particularly
middle income
groups.

both the operating

cover

(fixed

only
low

always
or

ac-

likely that
objectively

operation would
a

credit

service
a

costs

to

sale

increase the average indebtedness

suffi¬

was

of

of

variable)
in¬
curred and the capital invested in
outstandings at the going or prime

:

Department

n

nefy revenue obtained

spread

instalment

will have to be carried
by retail¬
their agents, but it also

im¬

was

automatic

-

ers or

perative to find out whether the

unpaid

e

it

and

plans promises
only to increase the level of
instalment debt outstanding which

charge account credit, as it gen¬
a department store.
A pertinent
statistic, particularly

reluctantly

been

in

ncrease

it

most

research

Economic Implications

development

growth

ones

the

And,

executives.

of

this

up«

not

relatively short dura¬

a

perhaps lake
with

plans has interesting im¬
plications. It would seem that the

credit

small

as

does marginal cost!

feature

one

costly

the

in-

increases.

store

most

are

tion serviced both

banking principles may
finally been realized by de-

artment

The

1942 -43

and

credit

established

an

the

ertain
ave

than

The

an

of

loan

first

can

only

1943 -44-45

durables, it

be stimulated

revolving budget and quantita¬

tive

at various levels of outstand¬

servicing
talment loan falls sharply
ize

of

account,
is much

enue

granting

author

expected,

cost

verage

its

costly

new

were

harges instalment credit is prof-

This

costs.

through

tion/

be

costs

table only when the economies of
ealized.

credit
a

more

may

credit,2

hat at generally prevalent service

arge scale credit

Broad

are

realized

have

stores

slack

The

instalment

costs

Of course, they anrelative
increase
in

indirect,

products

PAST PRESIDENTS

the
active
assistance of the credit
plans.

t:Ts point on the,nature

at

cient

of credit.

and

author found that

igned to aggressively promote the

ales.

consumer

may

IBA

exploited
the lagging

Finally,

for

hoped,

the

credit

on

K few further remarks

revolving budget or quan¬
titative-automatic credit plans de¬

a

direct

taken for

scale retailers have turned
to lib¬

even

recognized.

account.

It may be asked why the
large

icipate

break

It must be emphasized
that this implies that all costs of

transactions

Motivation

use

to

operations.

con¬

cept-is now extended so that the
customer not only can use his ac¬
count
for- all
classifications
of
goods carried by stores, but is

or

is

new

insured

12

market

r

,

volume increases. In

as

be

readily seen t .at appre-.
ciation of the extfent of
fixed costs
of credit may now be

Innovations in Granting of

123

«

4.

Oregon

The Commercial and Financial Chronicle

the high side of what the true

on

123

Continued from page

of their

might further swell
er debt outstanding.

This

terms.

total consum¬

the

large degree

Of course, to a

instalment
credit is derived from the demand
for consumer durables. It will be
interesting to see to what extent
these developments in the extend¬
ing of credit actually stimulate
the demand for consumer goods.
for

demand

consumer

department stores, mail
order houses, furniture stores, and
other retailers find that they can
the

If

credit

we

the

under

plans,

credit,

pat¬

spending

consumer

terns, and distribution.

that, al¬

important one, the size
is but one
of the factors affecting the de¬
mand for instalment sale credit.
an

of the montnly payment

subjected

These factors have been

measurement by

quantitative

Avram

Kisselgoff in his pioneer¬

ing study for the National Bureau
of Economic Research of the fac¬

affecting the demand for in¬

tors

stalment sale credit.

Income was
found to be the "main" factor. The

the
next
most
significant - factor in
consumer's purchasing decisions.
cize of monthly payment was

statistical

Kisselgoff's
allowed

was

of

him

".

lows:

.

findings

conclude

to

as

fol¬

instalment sales credit

.

highly sensitive to the income

the

current

But consumer credit does,
tend to accentuate the
economic activity,

cycle.
he

feels,

fluctuations in

although this is not the first order
of
importance.
His position is:
consumer instalment credit
.

.

cyclical factor of the very
Even if cyclical
fluctuations in instalment credit
is not

a

first importance.

the
still exist."4
Kisselgoff generally concurs in
this, stating that consumer instal¬
eliminated,

entirely

were

busines scycle would

centuate

credit, like almost any
of credit, tends to ac¬
economic
fluctuations.

to a lesser
extent to the size of monthly in¬

in these plans.
The revolving budget concept in
most instances completely elimi¬
down

nates

wnile the
quantitative automatic plans gen¬
erally require only token down
payments and often not even that.
It may be anticipated, in con¬
clusion, that the net effect of the
innovation in credit granting will
payments,

to accentuate fluctuations in

serve

strategic segment of instalment

a

debt.

income

The

commonly bought on
tended (long term) credit may be¬
come
even
higher than it has
been. This can have profound im¬
goods

cyclical fluctuations is
portant.5

im¬

very

position held by Haberler
Kisselgoff is by no means
unanimously
accepted.
Some
economists have been inclined to

considerably

sis

the importance of consumer

credit

instalment

more

fluctuations

to

economic activity.
the

use

prosperity of 'the '20s.

the

recovery

due

the

of

conducted by this

Regulation W

demand for

impact

author indicates that the easing

of

significantly stimulates the

credit, particularly in

period of expansion; tightening,

contricts it.

V

-.

•

■

This is significant, for the vari¬

plans discussed in this article
have liberalized credit particular¬

It is generally agreed

that

con-

credit plays an important,
although secondary, role in the
sume,r

ly in the department stores.

This

has not

only been achieved by a
blanket lengthening of terms or

subordinated

accrued

$1,000

vertible

deben¬

1, 1970, of Varian
Palo .Alto, Calif.; at
interest.

is

debenture

con¬

initially into 90 shares of
stock

common

at

and

105%

be

credit

repayments

ther restraints

ditures.

In

accentuate

can

place fur¬

may

current

on

other

expen¬

saving

words,

increases just when it should not.

Gottfried| Haberler, in his pio¬
neering

extending easier terms to

higher
balances.
The very automaticity
of the new plans in itself is
a

credit

most
12

or

means

as

and

to

up

in¬

cluding Nov. 30, 1958; during the
following three years, at 104%; the
three years at

next

the

three

103%; during
Nov. 30,

ended

years

1967, at 102%; the next two years
at

101%

thereafter

and

at

Demand

for

Factors

Consumer

Affecting
Instalment

Soles Credit (New York: National Bureau
cf
Economic

Research,

end

1952),

32

pp.

33.

for

6,

The net proceeds

of

debentures

the

for

the

from the sale
to

are

be

ussd

purchase

build¬

land,

of

ings and equipment, for engineer¬

marketing

ing,

manufactur¬

and

these

are

limits

opment

4 Gottfried

Credit

was

incorpo¬

higher, inasmuch

generally set

engineering services in the micro¬

are

Haberler, Consumer Instal¬
and

Associates

Varian

rated

April 20, 1948, in California.
It
is engaged
in two principal
activities
the first, research and

This

Economic

Fluctuations

(New

York, N.B.E.R., 1942), p. 175.
5 Kisselgoff, p. 59.
6 Alvin
H. Hansen, Full Recovery or
Stagnation? (New York, W.
W. Norton
& Co., 1938), pp. 276-278.

had

fought along
the bloody road of the Revolution,
from Concord and Lexington to
Yorktown, they turned their faces
to
the
west.
They
built
the
Conestoga
the

they

crossed
the
They froze on the

wagons,

Appalachian
Plains.

Great

and

range

Oregon Trail and in Donner Pass.

that

was

than hunger. They

worse

and they were free to
fight, in their own way and their
fought,

reward

was

homes

had

with

life

a

rich

a

they

wilderness

life

cut

the

of

double-bit

satisfaction

in

—

and related electronic fields

under

with the Federal

contracts

Government and
the

and

and

the

Jefferson,

Carl
Schurz,
a
Europe's tyranny

from

refugee

America

in

"Here

you

can

see

daily how little a people needs to
be governed, There are govern¬
ments, but no masters; there are

insurance

and

banker

the biggest

and

borrower

company,

the biggest

the biggest consumer,

lender,

defaulter and the big¬
gest spender, the biggest sucker
and the biggest meddler.
Yes, the biggest meddler—and
as Thomas Macaulay said, "Noth¬
the biggest

ing is

galling to a people, not
from the birth, as a

so

in

broken

or,

tells

which

ment

and

read

words,

in other
government,

paternal
meddling

a
govern¬
what to

a

them

and eat and drink

say

wear."

and

For

quarter of a century now
operating on the prin¬

a

we've been

do better.

can

two

ago that he got out of
business, after being in

years

the barge

in

it—and
Just

red—for 26

the

years.

through a report on
interesting read-

going
RFC

the

can do,
It wasn't until

anything you

that

ciple
Sam

makes

.V.

ing.
much

government do we
have today?
The last figures I
could find, compiled a little more
than a year ago, show there are
116,000 units - of government in
How

say—

the biggest

biggest employer,

the

but
they
areonly
commissioners, agents. Here you
witness
the
productiveness
of

the United

freedom.

is it that the 115,999
originally held all but
a
few governmental powers now
are relatively helpless, so that we
are constantly reminded in Wash¬
ington and elsewhere how frighteningly centralized the one single
government has become.
.-/"/j

governors,

.

."We learn here how superfluous
is the action of governments con¬

multitude of things in
Europe it is deemed
absolutely indispensable, and how
the
freedom
to
do
something

cerning

a

in

which

awakens
That

to

the desire

it."

do

America

the

was

Schurz knew
was

100 years ago.

the America many of us knew

land

and

short years ago—
individual opportunity

of

responsibility,

fearing

arrive

too

this

at

important

figure.

how

But

,

God¬
lived

where

and

men

women

is

Nor

important to give all
establishment.

Federal

our

should

are

more

just

a

shipped in freedom.

the

Federal

-

It

live

was

to live in, to

free land

a

for; and, if need be, die for.

Where

do

we

stand

on

freedom

fact that in the year 1952,
Government bought

almost

than

of

it,

$4,700 for it.
Hoover

The

today?

of red tape,
and paid more

spools

9,000

miles

366

Commission

has

grown

.

bite

of

33%

Sam's

in

this

total

widened

but

to

75%

The

last
it

is

proliferation

in

our

may

in the states
as great as

Federal

Government

be considered less dan-

and
L.

T.

JULIUS POCHELON

REGINALD MacARTHUR

KENOWER

NORRIS

HITCHMAN

"

MELVIN R. STUIT

Smith, Barney Places

Secondary Offering

Bonds

A

secondary offering of 47,900
of

shares

,

jU

made

was

Barney

'

Southern

of

value)

Common Stocks

$57.62%

stock

common

&

Underwriters, Distributors and Dealers in

par

Co.
Smith,
Co.,
New
York, at
share. It was quickly
Dec.

on

per

(no

Pacific

Municipal and Corporation Securities

bv

9,

Specializing in

oversubscribed.

Listed & Unlisted Securities

Michigan Municipals and Revenue Bonds
With Colo. Inv. Co.

\

(Special to The Financial Chhonicle)

JlRST OP^flCHIGAN CORPORATION
Member

BUIIL

•

Flint




Midwest

Stock

Exchanges

•

•

Grand

CHICAGO

Rapids

••

Lansing

•

Port Huron

with

Colo.

has

—

H.

Wendell

affiliated

become

Colorado

Investment

Co.,

Kenower, Mac Arthur & Co.
FORD

BUILDING, DETROIT
2-3262

WOodward

Joins F I F Management

COLUMBUS

•

Amstutz

Inc., 509 Seventeenth Street.

BUILDING, DETROIT, MICHIGAN

NEW YORK
Battle Creek

Detroit &

DENVER,

•

DENVER,
Reed is
ment

Street.

now

Colo.

—

with F I

Corporation,

C.

Jacque
F

444
-..

Manage¬

Sherman
<•

•

-

-

Trust

GRAND

(Soecial to The Financial Chronicle)

Saginaw

Michigan

-

Bearinger Building

Building

SAGINAW

RAPIDS

GLendale

1-2231

*

is fully

analysis in
petroleum in¬

JOHN

.

run?

ernment?

1913

electronic graphic recorders.

Municipal and Corporate

re¬

ports, "In 1929 the public wealth
big; big in
represented only 15% of total na¬
population and material wealth;
tional wealth, in 1948 the public
and
even
bigger
in
taxation.
wealth amounted to 27.3%.
Is
Imagine — in the 41 years from
this creeping Socialism?"
Maybe
1913 to 1954, our taxes were mul¬
it is Socialism that has stopped
tiplied 45 times—from two billion
creeping and is now walking.
I
a
year to more than 90 billion.
wonder—are we going to let it
Even
more
importantly,
Uncle
America

and localities

Specialists in

than

2,000 distinct segments of Federal
Government. It is not a joke, but

and worked and learned and wor¬

Where
is
our
Founding
Fathers' concept of limited gov¬

electromagnets,

dustries,

It

shocking

sufficiently

be

that there

note

to

it

year.

and

I

divisions and subdivisions of

the

chemical

chemical

<

most

that

units

Carl

That

until just a few
a

States.

not

important

.

.

is

It

manufacturing

and

for

tation

century after Washington

a

the biggest house builder,

owner,

from

electron tubes, spec¬
related instrumen¬

selling

always rich in exotic
entertainment or
—government largess.
and

Uncle Sam is the

private industry;

second,

trometers

if not

even

all

regulation or control.
biggest land¬

ernment

the

out

their

rich

in

foods, artificial

100%,

with accrued interest in each case.

wave

cycle, found that

Kissegoff,

are

duration.

that average durations and

outstandings

ment

the

extensions

months'

study of instalment debt

and the business
3 Avram

24

they

Sam"
big

grown

It would require pages just
list the myriad of areas of gov¬

to

in

wearing
no
man's
collar. They wanted to cock their
hats as they chose.

re¬

may

ing; for expansion of corporation's
research, engineering'ana devel¬
program,
including • de¬
fluctuations in
the
demand
for
velopment
and
introduction cf
new
cycle sensitive consumer expendi¬
product lines together with
separate liberalizing force. This
tures in durable goods. Further¬
existing prod¬
has been discussed briefly above, improvement '* of
more,
once
a
contraction
has
but should be emphasized. Under ucts; and to augment company's
started, and income begins to fall,'
working capital.
the
revolving budget approach,
debt
problem of economic stability. In¬

stalment

Beyond
this
our
forefathers
fiercely independent. They

After

has

America

right.

were

believed

Freedom?

on

Growth of "Uncle

The

one indi¬
attack by

any

domestic

individuals.

other

could

&

ous

important.

protect

from

Half

Dec.

and

deemed

pansion of instalment credit.6

a

tures

Alvin Associates,

large measure financed by an ex¬

ceding year."5 Liquid asset hold¬

convertible

Each

on

3

Co., San Fran¬
cisco, Calif., on Dec. 9, offered
and sold $2,000,000 of 15-year 5%

a

Research

Witter

Dean

1935-37

the

To

axes;

5% Gonv. Debentures

rise in the demand
consumer
goods "in

to

durable

for

budgeting.

Varian Associates

100 Vz%

attributes

Hansen

H.

A. G. Hart
of instalment credit

of the significant props for

one

as

planning

empha¬

place

cites

account

to

Dean Witter Setts

The

in

have

business

his

(2)
vidual

stemming from their self-reliance,

and

on

will

in

this

and sales

instalment sales credit to

of

tion

who

tailer

Where Do We Stand

of They fought Indians and terrible
ex¬
disappointments and homesickness

elasticity

for

terms

down
payment
size, and
price levels exerted additional in¬
fluence, it was thought. The F. R.
survey
finds liquid assets most

elimination

virtual

quantitative appraisal of its role
do not suggest that the contribu¬

payments,
and
only
slightly to the income of the pre¬

ings,

the

plications, particularly for the re¬

year,

stalment

is

down payments

adds, however, that the few
attempts that have been made at

He

a

cautioned

be

must

It

though

reference

other kind

changes in
instalment sale

for

present, for terms are
just as rigidly related to size of
purchase or balance.
A second
of

ment sales

structural

market

the

still

is

factor

lead or lag behind
points of the business

to

forward

it

consistently

automatic

new

look

may

basic

seme

to promote

continue

comfortably

3

the

to

though the graduating of terms
mitigates this effect in the case of
the quantitative automatic plans,

series do not

the consumer credit

according

set

were

consumers' demand for terms. Al¬

Innovations in Granting oi
Instalment Sales Credit
liberalizing

Continued from page

distribution of terms would be if

they

lo

Thursday, December 15,1955

..

.

(2648)

124

_

'

Members Detroit and Midivest Stock

Telephone 2-7128

Exchanges

Volume 182

Number 5490

.

.

The Commercial and Financial Chronicle

.

(2649)
since

gerous

they

to

closer

are

home and therefore

to

Restrictions

subject

more

community opinion.
Where do
First

stand

we

what

it

was

Worse yet,
Freedom?

on

whirh

on

our

government was
government,was founded?
lounaea.

Doctrine

of

Karl

own

grant tQ

we

ganization that

What, if not the individual, the
rights of the individual, his rights
to

in vast

property, to be free and to

equality?
Indeed, our philosophy of the individual is Amer-

of

areas

Fourth

of

it

as

did

once

on

July.

A hundred
years a&v
ago

en-

private

g

Karl 1V1CUA
Marx

^

Check

or_

them

off|

from Number

man's

power over a

nUU

IBA

bJK

one

One

—

PAST PRESIDENTS

1941-42

1939-40-41

1938-39

one._

abolition

of

livelihood? Who gave that power property in land, and Number
to government? Not the Founding Two-a heavy progressive or
Falhers"
dnt^n thrniiJvf0^6-w, kI~
A farmer cannot freely decide f°™nJkr©ugh \° Namder 10 —
on his own judgment the best and
fr£e education for all in public

ican, and,so recognized when in most profitable
1840 Count Alexis de Tocqueville
in his book on
America,

wrote

^'Individualism is
sion

to

given

which

birth.

novel

a

novel

a

expres-

idea

Individualism

has

is

of

democratic origin."
'The
ual

the

in

have

philosophy of the individwhat

was

He

prominently

as

deavor, a man cannot get a job set down the 10 ways to achieve
unless he first belongs to a union. Communism—the Ten CommandWhere do we stand on freedom ments according to his gospel,
when

Marx

Rights of the

on

Individual

125

Karl

wrote—"You

confess

that

Marx

hated.

must, therefore,
'individual' you

by

his

of

use

SC™°1S*

land,

what seeds to sow and where they
are t° he sown. If he violates the
controls, restrictions and allotnients handed down by the agricultural bureaucracy, he may end
up in the poorhouse or in jail.

Marx.

A man can't hang up his shingle
a? a doctor, lawyer, barber, drug-

And

pst,

£ {J™®

dentist,

engineer

k?ePer without

Socialistic Base Broadened

or barfor piles

paying

of

This

property.

person

made'Impossible

'and

ba,tes, th^phiiosp-

5
does °+t.th£ inwVifUalAaI1dfS0Ai0?;
the Fascist, for the late Adolf
Hitler declared-To the Christian
doctrine of infinite significance of
the individual
I oppose with

(

thi«gs
j

d

f

th

£lwa'sed
us__it>s for

^iTh^c belief
£fiiTn fnZSl 3CS
with
individual freein

ZeZ71SmodnWsfrhous ndnaTan"

i^ceXrsTJLaaU-=:
ful state

Thev

us.

Some peo-

h

t

t

when they're sold to

our

0

n

now

2nd

properly control its spending and

jj16 eonduct of those who receive
it.

.

good

recent

own

in

press

vol,'of

rpminfi

those users don>t want that sub^ But the Politicians demand

,nmP

S%0Trnment Control
°J^i°rnTrni

its continuance.

guarantees on half of
^"iongefufg' govZZent

We have gone completely

government

home mortgages

»

as

manv

board

as

to btr secured,

fobs,

C. Witter

wages,

from

away

the

landmarks

we

temporarily lost; and the old
sound tablets of

and

wisdom will

emerge to teach us again what

have forgotten.
That

awakening

which

we

>

of

freedom,

need to reawaken,
was phrased by Kipling:
in my home town, Highway 114
"And so, when the world is
runs right through the business asleep, and there seems no hope
district, and there's some talk of of her waking,
,
T

^to^VThlsToLZstrle^
orcler
t.^s® °mer streets
Sours «
Z'hat'Z hoflitfle

overEverything has

on security.

Jean

—

Sl

history with
Independence Threatened
TVA should teach us the result.
Again, only last week, you must
There the taxpayers of all the have noticed some talk of stopUnited States are subsidizing the Ping big league baseball because
users of TVA power.
Many of of government interference. Out

Our

these

all

Emmett F. Connely

re-

.

.

clarity the doctrine of the
notningness of the human being."
icy

a

think

John S. Fleek

nronnsal
,

if with"only

July

dlss?"t'n® fvote,sd

,

good for

are

'rb<j

,is
pending before the Senate.

m0™ rent, but I can't
you

The

1°®se'.

on*

House

Maybe

broadening the

on

base

at. age 62 and the disabled

e

service f°r

way,
way ana maae impossiDie. "

.

I

keep

we

1 A5

bmfrgeois °than ?h7Xdd"sl UonTlTi ™^
owner

:

When you check them off, one
after the other, you'll find we're
already well on our way to the
achievement of the Communist
State as blueprinted by Karl

we

so

m°Ut °f sime mutter bad dreara
,ong
that makes her
and
moan,

Sadden* all

arise to the

men

checks, 20% of all power pro- "^though the u .mate in secu- ^nmenfgets to look to big ™und of fetters breaking,
duced by government, farm prices
-P
J >■
SL abor camp government and once dependence
And every man smiles at hi3
dete™ined by federal action, gov- ?»d.'^he salt mme There the to- fs established, independence van- neighbor,, and tells him his sou!
"U ernment control of silver and gold tahtanan masters take care of ishes
• is his own." " »
i

our

upon

.

Christian doctrine of the sancUW

Z

inriivZ fliketwo^

the

„

milLtones

§

There

a'
°'L °ne fourth of means
SSL is atland than 104 government ™ean®n«
vigilance S our fewer government owned and
onet ana

The hard and stonev oath which
reauireseternal
requires eternal

there

„o

for

Republic with
its God-given, unalienable rights,
ways

a

agencies,
talities

banks

of

all

and

kinds

of

reliance

on

govern-

l"^twh.ch leads to the Hegelian
:

Where

do

Let

From the

the

you,

stand

we

Free-

on

look at the record.

us

never

big

deducts

of

it

And

leaves

in

as

for

the

liabilitv.

vour

the

Bn-

t

thfi

monstrous

Time

permits

prove you

do not

Nothing

change

has

at

the

happened

nnlice

to

our

outwardly.

least

No

But constitutional

U-

U

■

Old landmarks

away.

U

J

U

rnu

Whose bread I eat, his

s^gTsin^^to*^^

warning proverb from England

^at^^JrhrinZce^'years
sounded

,

Y

los+

A

t

i'he

fair-employment

government tells

they must
even

may

pay

get

though
be

so

them

a

a

dollar

their

low that
dollar

an

must still demand it

law

or

us

and them
an

will

one

hour.
or

and

dignity

They

evade the

perchance go unhired.

and

the free

hat

to

of

nations

sire for peace.
old

talk

of

knew.

once

we

fashionable to
and

strength

one

and

It

the
is

world

the

de-

But it is corny and

talk

was

Co_
Co.

the

great

Joins G!cz::i Kolb Co.

like

a

patriotic

American. The flag no longer flies

Christian teachings of the sanctity

(Special to The Financial Chlonicle)

of the individual and the great
such

With

visions

our

in

DENVER, Colo.—Robert T. Kit-

ha?' Li

,

Gle

n

s jo
Ko b &

d

tu

t e

Co.,

509

f

ff

staff

f

;

of

Seven-

^ doWl7the
and

mtete wiil rte Teen'th sirTet."He"was"previously
the sand will fall with Honnold & Company, Inc

scatter;

us

has

ears
.

McDonald-Moore & Co.
MEMBERS

has

Great

nothing

what

he

all

last

is

es-

®entiaJ that there be Federal
It

should

be

our

Listed and Unlisted Stocks

pointed

Penobscot

out, thereSupreme Court has

DETROIT

glared, in mild but unmistak-

IrantinTZtoaLfundY^whkh 'it

WATLING, LERCHEN

EXCHANGE

iTcoupL^ZZcoltrol"

fore> that

takes

EXCHANGE

Municipal and Corporate Bonds

aid

ft

STOCK

Underwriters and Distributors

away

just

we^k the statement that it
tM

STOCK

give

to

took

noted

MID-WEST

White

in the first place,
have

DETROIT

MEMBERS

Let us stop

'lon
the

who

except

You

Dying out is part of the beauty

hour, structure

productivity
no

Perceptible.

rules.

of

late. It is never
P<;revjve
Persoaa^

on

Father
us

s

■.

,

ireedom.

G
relying

from

deaf English

on

.

Tf

,

various

C.

with E. H. Hansen

124 North Brjght Avenue.
i\ortn Jtsngnt Avenue,
formerly with J. Logan

.

jje
A
&

now

foZtheir Treedom6" iTk to^had

foundations

businessmen, we can't hire have vanished. The house of our
anyone we choose.
The men we government has suffered an inner
hire must belong to this or that
decay
although it is almost imunion, have their Social Security
cards in order and be in line with

remember

us

us.

even

for-

of

have eroded

peacetime!

Let

freedom.

and

matters

—and this in so-called
.

oom.

tion

country,

men

U

WHITTIER, Calif.—William

...

Anglo-Saxon doctrines of freedom
that have been handed down to

of

one has attacked
it — not since
Pearl Harbor. No shots have been
fired. No blows have been struck.

A

.

.

,

(Special to The Financial Chronicle!

ourselves

eign policy such as NATO and the
United
Nations, which
through
treaty can change our Constitu-

mention

government does not ask
if they wish to register
for
military services.
Two
years are taken out of their lives
As

.

Joins E. H. Hansen

government
it

Relianc9 on government is more
Hjan aiV lnsidlous disease. It is
the robbing of men, first of their
se If-r el i a nee a n d finally of their

what it

owe

The

young

.

than

more

you

collect.

to

on

doing

stOD

communities,

no

can

seeks

reliances

WP

erowth

«lrof°fa^iiab&ue
powe?S o/Iome'offur'sfatefal
assets^md
have eZnts haveThowm
'

block all your
to

bis

& Co
&; uo.,

a

it but you

see

hole

paycheck.

balance

f"r

experiment., 1]nws

posteritv

Bowers
Lowers is

income.

your

insuring does not that noble to go into
Permit me
detail on

It is thus and only thus we shall
again secure the blessings
of liberty to: ourselves and our

once

0j government's interest in agri-

mere

You

warning

rfaht

paychecks of most of ers $4 billion a year.

government

the

clearer

no

But it is interesting to note that unless we stop d01ng
ourse vesWe can start in by refusing to
ibe British Labor Party met reWe can start in by refusing to
a
few experime®tal cently at Margate and ueuaea to accept any r
Federal help hT our
for
experimental
diiu decided 10
ttCu"
^
stations 70 years ago to
stations
sprawling re_adlust its thinking.' The unai awn particular Highway 114, and
xne final
miilfinio
multiple activities Lefin, taxpay- words from former Colonial Sec- by persuading our fellows to do
costing
w<?rds from
Colomal Sec^ P
S
rftmmiinu;PQ
Look

regular portion of the individual's
know

blood oath, the bay-

be

can

that letting government show the
lead* downhill int0—the

culture {rom
from

and Marxist totalitarian state.

dom?

hav

ness^L

in

engaged

the

bi00ri oa.u

tne Dig lie.
■
...
*
...
,i«'her. are Vuisi
Perhaps we might have learned
- We
have
no
to
something from the British. Time critirize'the farmer or the laborer

instrumen-

fhh Znna?en«lUr tooad smoZh !"aki"g'g^anteeing and
apparently
broad,
smooth loans.
highway

.u

t

e

from

you

and

& CO.

me

GRAND

RAPIDS

Building

26, MICHIGAN
E. LANSING

FLINT

can

CHARLES A. PARCELLS & CO.
Established

1919

ATTENTION N.A.S.D. MEMBERS

Investment Securities

Orders
*

Executed

Nj^.S.D.

on

the

Members

Detroit Stock

Members:
New

York

Detroit

Stock

Stock

Exchange

Exchange

at

Midwest

Stock

Exchange (Associate)




on

Request

Invited

Members

639

STOCK

Pontiac

Penobscot Building

Telephone WOodward 2-5625

l

s
I

.

EXCHANGE

DETROIT

Kalamazoo

for

DETROIT STOCK EXCHANGE

Exchange

DETROIT 26, MICH.

Jackson

EXCHANGE

of prescribed commission

Exchange Listings

MIDWEST

Ann Arbor

60%

Inquiries
American Stock

STOCK

DETROIT

I

1

26
Bell System Teletype DE 206

I

The Commercial and Financial Chronicle
126

make

impossible
on! Monumental largesse to farmers is
another reason for thinking

Continued from first page

It

In

months.

that

fear

within

fact,

sort

no

eased when

we are

the determination

on

on

told of the

the part of

brink of

anything of the sort government to do many other
at the present moment. We do
things—all of the sort which
believe,
however,
that we jn the past have been reshould
such
or

certain to produce

business

depression.

a

Neither

somehow do We feel relieved when it is ness
had learned to make such sajd
jn
high quarters that too
less faith that

plying the remedy. Actually, to prevent a major

if in business.

strongly suspect that

we

continue to press some

*

of

.

.

..

u

the
-

as

time trouble—in order to prevent

one

we

:

garded

Phila. Sees. Ass'n
Receives 195S Slati

community (usually by fluctuations in business, but

President of the Philadelphia S<

purities Association to serve t
succeed Robert E. Daffron^Jr
partner of Harrison & Co., whos,

term is expiring.
J. .i
Other officers nominated wer
aev?s ?* £?coby' Jiv vVice*/^nSi

vice-President;er'

S

I

ve nc e r

partner of Wrigh

Wright, III,

Wood & Co., Treasurer; and Orri
'. p?rtr^^r P°*i^c5mid
0 er s
ar e' ;Cre

p*
tary

C'

The following were nominate

for the Board of Governors t
?£rve for f ^erifhiorwe^&3Weeks

DeLong°H.

Financia

Monohan,

Vice-President of the Providen

Mutual Life Insurance Company

a^d' T pf^hton

^

H

Mclllvaine, Manager of the Mu

nicipal Department of Goldman

Sachs & Co.

tin^henfa^upalA<^

debt), tinkering We find little evidence that hel(j at the Warwick Hotel'
an occurrence impossible, and
monetary and credit policies with money and credit, heavy We have as yet done anything Friday, Jan. 13, 1956.
that we were even now ap- would be employed to the full burdens of military outlays of the sort,
we

v

catastrophe at

some

another in the future if we

had

'

from

safer

be

bring the farmer into financial jeopardy., Itv is the government, too, which is to

to many current rather than the individuals
analysts. Then we have the themselves or their relatives
old, old standby, astronomical or private institutions as in
defense expenditures to fall the past. It is the government,
back on!
also, which if necessary will
It is a fact, though not often try to encourage individuals
realized, that precisely things and business, enterprise to go
of this sort, mostly under dif*'mto> debt when goodtjudgferent names .and sometimes ment . directs otherwise. This
in different forms, which it :would do by making it
have in the past been - re- cheap to borrow.
garded as the catises of deThe trouble with this thinkpressions and thd like. Now ing is that the government
bigger and better doses of the can do these things only" by
same
old poison is to give taking the money away from
eternal life to our prosperity! the people and thus reducing
Onerous taxes to support their ability to take care of
wasteful government expen- themselves, or else by moneditures, large public expendi- tizing debt, and laying up
tures which were not met by trouble for the future. It
current revenues, overly com- would be great if we really
mitted elements in the busi- had learned how to eliminate

few frame of mind is certainly not

have

we

stand

we

a

point

deeply disturbs us when according

precisely such notions as this we hear men of learning and
were almost everywhere pro0f influence listing such
fessed in 1928 and the early things as sociaL security and
part of 1929 — indeed for related programs — old-age
much the greater part of 1929 pensions, public and private,
—and certainly there is none an(j unemployment insurance
now who fails to realize that —as
providing assurance
it jvas in that instance a case against business depressions,
of pride going before the fall. It makes us even more uneasy
Now let it be clearly under- when huge government
stood that we do not mean to spending is listed as a first
say that a similar fate is in rate "cyclical snubber." Our
store for us now

this

provide and is providing
PHILADELPHIA, Pa.—Franc4,
we
have entered some funds for the aged and the M.
Brooke, Jr., partner of BrookJ
of economic millennium, unemployed, the government & Co"has"been"nominated"f

that

Strange Medicine

has not failed
will easily recall that

whose memory
fhem

depression

from

We See it

As

"

Thursday, December 15,195^

...

(2650)

hh

someone

"be

^

turndown and armament, wages unduly
'
high for less and less work,

Even the rigidity of wage government competition with
ra^es and the1 determination private industry in key areas,

(as 0£
has called the "built- venf
snuboers

cyclical

^

much

only to pre- government interference with
readjustments in the free play of private initia-

day)

any

we

shall all but

cer- more onerous

is

seriously'garded as <:ertam't? bring
many — and
.,
i
p
•
fp
very 11 k g l y
to prcLipiidtc
,

,

11-in

in

1929

as

severely

and

the

as we

years

did not all of them, labor leaders
su'c-

or

■

usuaiiy known as'
politicians, either—as an- business depressions. We are

of the same opinion

should

It

enough why

BEECROFT, COLE & GO.

will

these

i

'

MUNICIPALS

but
Bank

Building

TOPEKA, KANSAS

Teletype TK 8696

Teletype KC 81

Now

to

New Mexico

—

.l

not

Admit Leeds, Lewis
New

York

120 Broadway

City, members

of the

Lawrence

Lewis to

partner.

on Dec. 31,
Archibald Douglas, member of the
g^p

fjrm

jn

j

L.

F.

Rothschild

&

Co.,

+„lr

tak-

change, on Jan. 2 will admit H.
AUStm

Kaye,

Abraham

S.

;

(Special to The Financial Chronicle)

SAN FRANCISCO,
E.

White

ment

it

insurance

companies

on

was

form, too, money

LUCAS, EISEN & WAECKERLE
INCORPORATED

Exchange

Street, Kansas City 6, Mo.

the

to

with McAndrew & Co., Incorpo
rated, Russ Building.

which

(..■

fan

L n'"1!
ieL

MO""1,*

Co^iSc^

caused the

years

agricultural nightmare of the
glorious days of the New Era.
Here again, though, it is the
,vM^

Federal Government which

Teletype KC 42

®

c°"'

prior to
produce

'Twenties

conditions

associate!

ia"So« ol J itics-

weak paper.

in

Calif.—Petel

become

Piatt

i

endorse¬

being poured into agricul¬
more lavishly than

the

has

0iu*c,lS'
ot

ture much




McAndrew Adds to Staff

V:1

!

is

Bell

Montgomery Street.

A

be regarded

step in to place its
In another

Telephone Baltimore 4096

D.
E.

of the 'Twenties.
difference, or the one

g a g e

Midwest Stock

g

Calif.—Cla:
Hatch has joined the staff
oj
F.
Hutton &
Company, 16(

SAN FRANCISCO,

different

greatly

v

Industrial, Public Utility and Railroad Securities

Member

f

taking the curse off, is that
today the Federal Govern¬
ment rather than shaky mort-

CORPORATES

'

Joins Hutton Staff
(Special'to The Financial Chronicle)

as

and Other Midwestern States

916 Walnut

120

H. Goplc

partnership.

which marred the

which appears to

Texas

A. Sullivan, and George E., B
Ormonde of Toronto to genera

part^ership ^and En
to limited

a'fact, Broadway, New York City, memmen, bers of the New York Stock Ex-

is

it

Jan- 1 wil1 admit Frank |H|
O Donnell of South Bend, Danie

on

years

The

Bank and Insurance Stocks

r

,Wall
Street, New York City, member:!
of the New York Stock Exchange!
Thomson & McKinnon, XI

ing place of late years and is and Herbert H. Weitsman to partnow taking place in the field nership.
of mortgage credit is at bot¬

later

Oklahoma

aT

To Admit New Partners!

Pershing & Go. to

a

informed

all

u

tom

—

clear

economic

sort., of

from that

Kansas

-

r

Exchange? Mr''CA

DGDartmont

Pershing & Co.

economic

our

that much that has been

MUNICIPALS

.

Stock

ment Research Department.,^,,

troubled New York Stock Exchange, on
1 wil1 admit Milton Leeds

are

we

be

some

known

:\

—

be

then

Obviously,

paradise.

KANSAS CITY, MISSOURI

admit¬

partnership in Spiegelbergl
& Co., 39 Broadway, Nevl

,

ExclLge o°n Yo?k

people Exchange, will withdraw from
is not likely to save itself Partnership,
from the consequences of such
economic -transgressions if it
Rothschild Co. to
has persuaded itself that the
Admit Three Partners
wages of sin will not be death
salvation.

AND

Feuer

Manager of the firm's Syndicate Thomson i McKinnon
-*■
« ■■

by this modern notion now so Janand

MISSOURI-KANSAS

Missouri

Worry

prevalent that such things as

Columbia

York Stock

ted to

Broad-

120

bv this modern notion now SO

TOPEKA, KANSAS

821

Co.,

,

^New

.

Reason for

:/

117 West 6th Street

"/

•

.

GENERAL MARKET

&

is

what

other factor which tends to firmly
;
"■
-'.
' " -/still.

j ceeding that crash.

Admit Two Partners
McDonnell

Splegelbtrg, Feuerl

Sidney D. Cohn will be

now

tainly suffer for them quite put forward by

possibly

In

Mt

have always been re- Jan. 1 will admit Robert A. W. js Manager of the firm's Invest

and hard sions to make them more and tors

long enough

enough

McDonnell & Go, to

unjons not

alleged stabilizers of the these rates but on most occa- tive—these and similar fac-

in"

Gohn to ie Partner

for

the

most

*c-'

part lets it be

known that it has
of

oi

no

intention

letting its beneficence

CHICAGO

WICHITA

OMAHA

ST. LOUIS

Volume 182

Number 5490

...

The Commercial and Financial Chronicle

.

Continued from first page

(2651)

ance for its liquid holdings)
has
quadrupled in the last three years!

In

Europe's Unmanageable
Managed Money

than

less

ing-

and

2V2 years, check¬
savings-deposits in the

Netherlands

have

20%, following
a

derway and

on

reserves

becoming so
as
to
force Europe into
something it never expected to
do again since the gold standard
abandoned: into outright de¬

was

|;How

that

about,

came

and where it leads to, are matters
most significant to the future of

Europe, and of

no

impor¬

mean

tance to ourselves.
Dollar Inflation—in Europe
Our

has

economic and

been

(from

elements
nomic

in

restoring

equilibrium

nations.

They

eco¬

on

the

free

illustrated

and

powerful

elements,

producing

disequilibrium

directly,

rope:

.reckless

rectly,

under

which

Europe's
the

occurred

full

spending

disequilibrium
for

the

cen¬

monetary

francs

($1,423

billion)

billion
of fresh

credit.

Small

wonder

that

by

total

pouring

498

out

was

boosted

single

a

gold

the

Germany,

reserve

risen since 1950 from $0

—

$626 million

In

has

(zero) to

end of 1954.
gold-dollar
re¬

at the

to the end of
1954, gold and dollar reserves of

serves

the

world

lion

$2.8 bil¬
treble of

the

Soviet

lier.

Institutional credit expanded

Her

years

outside

the

S.

U.

and

lions went to Europe. Of the total,
a
bare $2J/2 billion came out oi

accordingly:

from

stems

"donations"—

modest amount of
American private credits — this
after
with
>■;

of

a

covering
the

The

dollar

deficit

*

area.

dollar" outpour

continues,

It amounts to far

course.

than

Europe's

what

appears

as

roughly

by

almost

than

less

two

late

1954.

ear¬

$5,000

years

—

sion

proceeded
on

ain's

to

The

German

net

indebtedness

business

(after

of

allow-

current

We

Lots,

we

find

can

it"

Missouri

ESTABLISHED
MEMBERS

York

New

Stock Exchange

the wartime

flations

has

D.

Municipals

O.

V

■

\
Midwest Stock Exchange
American Stock Exchange (Associate)

Saint Louis 2, Mo.
Bell

1-7600

Direct

Josephlhal &

Private

New

Co.,

J.

Wire

Xork,

II.

Crang

and

been

im¬

Business

1

DEALERS

in

Established
1874

e.'A

through¬

postwar

set

g

and

'M

in¬

motion.

When the banks'
hits

lending capacity
ceiling, the owners of the

a

deposits

take

function.

"subdued"

leaves

of

is

kets.

to

burst

Which

the control

of

curse

that

purchasing

excess

bound

I. M. Simon & Co.

lending

the

MEMBERS

it

New

liquidity in
the
public; sooner or

the

later, the

is

inflation:

excess

hands

the

over

Such

is

into

one

over

York

Stock

Stock

Midwest

Stock

American

Exchange

Exchange

Exchange

(Assoc.)

power

the

reason

controlled

CEntral 1-3350

mar¬

ST. LOUIS 2, MO.

SL 288

why
St.

infla¬

Louis' Oldest Stock

Exchange House

increases
wun

Connections

Teletype SL 593

to

up

20

20%,

increases

and

45%

In

the

of

and

'high' increases of
first

SIXTY-FIVE YEARS

those
be¬

OF

those
than

more

classification

INVESTMENT

S., the American
9.2%, being one of

at

lowest

on

second

the

entire

group

list.

BANKING

In

are

way and the U. K., the British
rise coming out at 27%. The third

group is made up of Australia,
France, Western Germany, Italy,
Japan, Turkey, Sweden and Fin¬

land. tIn the case of one of these
countries—France—the note issue

Stifel, Nicolaus &. Company

doubled in the 1949-54 period
in
four
other
instances—

was

and

INCORPORATED

Australia, Japan, Turkey and Fin¬

with

Francis I. du Pont
& Co., Toronto

of

'mecuum

Canada,
Iraq, Lebanon, New Zealand, Nor¬

1871

300 North 4tli St.
CEntral

BROKERS

the

Equally

"liquidity" accumulated

the

EDWARD. D. JONES & CO.
Chicago Board of Trade

sphere.

movement

Your Inquiries

Market

Odd

offerings,

illus¬

mark and the U.

Specialize In Orders For Banks And Dealers

want

experience

portant is the fact that the huge

the

We

rate

alone.that matters in

monetary

Bovenizer

But Brit¬

are
Belgium, Egypt, India, the
Netherlands,
Switzerland,
Den¬

In All

Local Listed And Unlisted Securities

a

slower

a

deposits)

volume

45%.

markets

louis

is

at

the Continent.

G. W.

expan¬

on a

Our Trading Department Is Active

there

Orrin G. Wood

1934

around

months.

more

"foreign

And Invites

money

trates that it is not the growth of
the currency (cash and

tween

"If

British

than

with

st.

1935-36

Edward B. Hall

been
overcome,
the
basic
monetary holdings in back of the
pound
sterling
shot up
again,
reaching
almost
$3
billion
in

per-capita-income tion is extremely difficult.
A recent survey by the National
$45,000 million in
this country — a
record rate of Bank of Egypt summarized the
commercial
credit
inflation.
By international currency (cash) ex¬
the end of September, the volume pansion since 1949 (as
reported by
of cash in circulation, as well as the London "Financial Times" of
of net deposits, was the largest July 23):
in German history. The latter has
"The
survey divides countries
grown
by $2.6 billion in 33 into three groups—those with Tow'
base

'hoards and Russian holdings. The

disregarding

in

equivalent

another

rest

reached

million

gold production; less than
$1 billion out of French

new

combined

by mid-1955, the
what they were three years

bloc gained some $11
Virtually all of these bil¬

billion.

1936-37

mil¬

had

out

the

is

elsewhere.

inflation

credit

year.

spectacular

Equally

which caused
had it not
hand-out policies.

France,

money

13V2% in

by

could

—

the

of

volume
already over-inflated,

spree

our

five

the

the

Pronto,

diluted

bank

base

bringing
employment and

the

million.

$483

tral

to

super-boom

have

the

In

=

an

grown

gained 169 billion francs

reserves

Eu¬

fostering
a
inflation;
indi¬
creating a climate of

;unhealthy boom has
fantastic proportions.

been

in

in

by

over-confidence

about

are,

indeed,

credit

by

never

How the dollar influx operates
the monetary systems may be
by a few examples.
In
1954
alone, France's official
j

the

of

were,

economic

as any

aid is.

powerful

as

$543

our

dollar-producing

military aid

described

PRESIDENTS

billion to

serious

flation.

PAST

lion
to
$1.12 billion).
With a
budget ($6.5 .much
smaller
increasein
the
Europe in the five years basic reserves, the net
deposits in
to mid-1955).
For example, an
Belgian banks, not counting the
estimated
$2.8 billion
is
spent savings institutions, went
up
by
annually by American personnel 25% in less than five
years, by
stationed
abroad, an item that 11.6% in the 15 months to the end
does not figure under the official
of last March.
The total money
Foreign Aid. And, a major slice volume of that
country had been
of the multi-billion military aid,
augmented by 32% in the seven
the off-shore purchases in par¬
years to the end of 1954 (while its
ticular, also the outlays for "in¬ retail prices moved
up by 27%).
frastructure" constructions, is as
After the 1951-52 dollar crisis
economic aid" in

un¬

is

now

by some
the footsteps of

two-fold increase of the golj. and

dollar

-"•■t

the dollar shortage was well

IBA

risen

land—the

& Co., Chicago

upward

movement

ST. LOUIS

CHICAGO

•

ex¬

ceeded 60%."
Inflation Cum Confidencel

In Britain, as on the
Continent,
the expansion of new credit, com¬

bined

Newhard, Cook & Co.

with

the disbursing of acliquid funds, provided
ample fuel to ignite a super-boom.
Paradoxically, this monetary in¬

Underwriters

and

volumes

American Stock

serves

r-

(Associate)

Midwest

Municipal Bonds

former.

Stock

AND

SAINT

Each

1st

Nat'l

Alton,

OLIVE

LOUIS

ances

Teletypes (Trading Dept.) SL 151 & SL 152
(Municipal Dept.) SL 571
7

Bank

7907

Bldg.

Forsyth

Clayton,

Illinois

Blvd.

Missouri

Bldg.

Illinois

Private

Wire

to

Clark, Dodge




&

and

to

to

individuals

-

I
I
I

U. S.

GOVERNMENT,

STATE AND

MUNICIPAL BONDS

pound

gold bars.

this pattern

appears

a

to be

customary paper money flood.

quality

was

of

■
H

SAINT

New York

the

The

volume

mere

of

Continued

If

LOUIS

1, MISSOURI

Correspondent 14 Wall Street

Chicago Telephone to Bond Department Dial 211 Request Enterprise 8470

improves,

money

quantity is of secondary

sideration.
Co., New York

important services

institutions and

totally different from that of the

the

Harrisburg, Illinois

the

Europeans who have had

money,

the
Rose Bldg. <

than

great deal of experience with fiat

Commercial

Belleville,

faster

our most

sterling,
German mark, French franc, etc.,
began to look like a hardening
or self-solidifying
currency, being
backed by ever-more dollar bal¬
To

Bell

H

an

were

much

of

the

money.
The ratios be¬
the
respective
currency
and
dollar
(gold)
re¬

creased

Exchange

FOURTH

by
of

rapidly improving.
Percentagewise, the latter in¬

Exchange

Unlisted Securities

accompanied

improvement

One

quality of
tween

Exchange

Listed and

was

apparent

New York Stock

Distributors

#

cumulated

flation
Members

•

fact

bank
on

con¬

that

it

money

page

128

RESOURCES

OVER. *600

MILLION

127

128

The Commercial and Financial Chronicle

(2652)

/

Continued from page

-

127

rather than of cash
that

ing.

expanded, is greatly reassur¬
Confidence began to return

In national monies, capital
ceased

felt

with
rsnd

relaxing

free

foreign

trade controls

which

in

fidence

turn
and

''harden"

the

to

—

a

relaxation

further

to

With

currencies.

confidence returning and curren¬
cies • hardening, such unexpected
things
happened
as:
American
cbort-term capital
($450 million
In 1954) going to Europe for the
fijrst time in such amounts; Swiss

French ,gold

hoards opening up
extent; domestic capital

some

markets

into
ance

funds, flowing

reviving;

savings accounts and
policies

on

insur¬

remarkable

a

scale; etc.
And,

a

aware

and

Witness the fact that

the re¬

borrow¬

authorities

monetary

of

Europe.

ing spree got underway, the like

They

of which

sibility for the super-boom of the

turn

ment

Europe has not seen, in

stimulating

private

invest¬

activity—on top of the

of
incipient inflation, to wit:

or

rapidly

rising

expenditures

for

consqmption and investment;
skyrocketing profits (before taxes,
and after);

last

un¬

boosts

years

which

crisis.

'

'

t:

is

and

its

conse¬

the impending

■

•

to

seems

add

1%

And

of

to

the

cost

of

even

where wages are not bound

to

living.

course,

contractual

Denmark

three

quence,

diminished public investments.

the ultimate respon¬

carry

market
which

and

follow every

"escalators," as in
Finland, they soon
upping of the retail

real

not

Are stock

estate

show

I—Cost

of

Living

Indices
June

Base

predecessors

of

Supermen?

How

luiti

There

up

pretense.

to

As

an art, it has to be
intuition.
But then,
how to control the
Manipulators
unless by the results —wnen the
damage is done?
Or shall we

played

trust

our

economic fate to

mittee of financial

a

com¬

dictators, to be

selected by what standards?
a

survive

democracy

ment

if

Can

Parlia¬

surrenders its vital prerog¬

atives, such

the decisions

as

over

the level of interest rates, quality
and quantity of credit, the ex¬

change
The

value

budget

of

the

currency?
have to be

would

—

the

price
level,
the
value
of
What economic and fiscal
policies are not relevant to that?

home

money.

hard,

The

gold

standard

is

no

pan¬

to be sure.

But it can dis¬
Money Manipu¬
lators.
And
it
permits
the
survival of democracy.
Needless
acea,

with

pense

the

to

say, money management
fundamental tenet of every

is a
dic¬

tatorship, from Lie totalitarian to

motive

1948=100

157

the

the

of

individual:

"guesses"

the

he

144

of

either

136

those

1949=100

134

Turkey.........
•Spain

1948=100

131

1948 = 100

122

Great Britain—

*1952=100

114

1948=100

116

into

Italy

114

earlier,

West Germany..

1948=100
1950 = 100

Continuous subdued

moves.

inflation,

in

particular, is selfdefeating once it is understood by
the people.
They try to hedge
against it and the inflation breaks
the

113

it creates

It does so even
its own momentum:
Full Employment which

1948

100

109

in

overheats

1948=100

107

Belgium

1948 = 100

107

open.

by

turn

Unbalancing
tional

Presently,

measures

to

inflation.

It

that

to keep the
of

money

That, indeed, is
managed money:

of the gold
replaced by a manmade mechanism.
Theoretically,
the Managers are to do, and do it
better, what the gold standard
should do, namely, to hold down
the

automatism

is

standard

Mutual Funds Shares

let the credit inflation run

is

it

the

boom

to

and

correct

the

de¬

amuck;

only since August that they
putting on mild brakes by

are

interest rates and bank
requirements, (the latter
to 12%). So far, it is all too little
and most likely too late.

ne¬

ient

in

country

stop
is

has

the

more

to

been
every

take

incipient

than

incip¬

where it has
reached the fever pitch: people
buying up everything tangible in
order to get out of the domestic
money that is deteriorating rap¬
idly. (American refusal to come
to the rescue of Turkey by new
hand-outs may have salutary ef¬
fects on that country's reckless
financial management.)
It

managed money is a
of closing the barn
the horse has been
The boom was permitted

British
classical
stolen.
to

est

case

after

door

get out of hand before inter¬
rates were raised early this

that turned out to
ineffective.
A 4V2%
rate will not stop any one from
speculating when he expects, a
10%
return.
And .-the. biggest
"speculators," the investing au¬
thorities were scarcely affected by
it at all; housing subsidies, waste-*
year,

be

a

move

totally

ful investment in coal

Turkey,

is not

incipient yet in
where prices have

even

mines, etc.,

all at the expense
bank

stage has
which virtually

reached at

essence

with

the

low-up underway—is distinctly on
the monetary managements of the
respective countries. They have

•

package at that.
Dr. Erthe world's most sincere

continued 1

European

the

follows

indus¬

interna¬

Deflation Ahead?

responsibility for
Europe's inflationary trend in the

power

the

and

accounts

last three years—and for the fol¬

every

markets.

cessity.

ultimate

flood in bounds.

the

domestic

of

relations

trial

Managers
The

48.

take-

increased

an

free-enterprise statesman, is try¬
ing to stem the avalanche by us¬
ing all his persuasive powers and
prestige. He is having some suc¬
cess
in holding the wage-price
line. But the German authorities

or

move

next

Manipulators. The result is
offsetting or exaggerating

1948=100
1949=100

Responsibility of the

of

instead

40

—

and

reserve

she

The

Corporate and Municipal Securities

brought about, German trade
are
asking for a shorter

unions

raising

pettiest kind. It is unwork¬
in a free, or relatively free,
economy because, for one thing,
it
cannot
cope
with the profit

212

=

profits

sky-rocketing

the

week

1948=100

♦January.

of

by

which the boom and credit infla¬

hours

U.S. A

Underwriters and Distributors

nearly a dozen million refugees,
and
keeps receiving^ from East
Germany at least'5,009 new
ones
every
week, has no more
than
some
350,000 unemployed
left.
Labor
shortage is at the
core of Germany's trouble as it is
in most of Western Europe. Fired

indirect relevance to

Switzerland.....
139

did

of direct

Canada......—

Bell System Teletype ST P

extraordinary dimensions as
in Germany — at stable
prices. A country that absorbed
it

work

Holland

MINN.

Nowhere has the boom reached
such

tion

or

taking
favorable bar¬

advantage of its
gaining position.

surrendered, too, together with
the social security system, labor
legislation, and everything else

France

SAINT PAUL 1,

most self-controlled—from

by

Sweden

BUILDING

unem¬

the

is nothing scientific about
Management except the

Money

Norway

BANK

(five hundred!)

present-day their number would be "unpoliti¬
dose
the cal," as it is all over Europe. The
money
intake and outlay when "voluntary" credit Restraint which
the effect depends on incalculable the Swiss banks
.agree upon is
reactions of the public?
not likely to stop labor—Europe's

Austria.

NATIONAL

500

able

Table

FIRST

some

booms, ployed.
Importing Italian * and
in the, Austrian workers —y 200,000 of

the

prices.

■'

Caldwell Phillips Co.

the storm?

and

do

December^, 1955

Thursday,

commodity price indices, to be them in "the country kt presentignored, as they were by the late is the safety valve of the. \ Swiss
Benjamin Strong and other wise economy.
But to raise- greatly

periodic,

wages

spending

the

time

symptoms

>

capital (or was it capital hidden
Switzerland?) speculating in
London
and
Paris,
Amsterdam,
Frankfurt
and
Milano,
driving
their
stock
markets
skyward;

in

to

are

acute

this

►

proceed
exchange

strengthened con¬
helped

Europeans

by
similar

if not incessant, wage
outpacing the progress
turn of confidence benefited even
of
industrial
productivity
at
countries which were not among
large;
the gold-gainers. This is true for
markets for manufactured prod¬
the Scandinavians, Europe's most
ucts in the process, or on the
socialistic
money-managers.
If
verge,
of
vicious cost - price
they did not break into dollar
spirals;
crises as yet, it is partly because
imports increasing far ahead of
of the financial help they received
exports to the
detriment
of
from
other European
countries;
trade balances;
partly because they, too, started
payment balances being under¬
putting Socialist programs and
mined
by recurrent waves of
physical controls into moth balls.
capital flights.
The expectation that they would
Table I illustrates the boom's
proceed along conservative lines
inflationary trend in terms of cost
helped to reduce the pressure on
of living indices—until mid-1954.
their foreign exchange rates—for
Some of them are worthless, rep¬
awhile. '
resenting nonexistent but offi¬
Everywhere, even a partial re¬
cially
proclaimed
retail
prices,
turn to
liberalized markets, do¬
such as in Turkey and Spain. But
mestic and foreign, has been an
note the 14% rise of British prices
added stimulus to restore confi¬
in 2^2 years; they still keep ris¬
dence.
But the strongest
infla¬
ing and do so at about half the
tionary stimulus came from the rate of the
wage boosts; on the
side whose function was to stem
average,
every
2% increase in
the inflation: from the politicoof.

flights

The gov¬

slowed down:

or

ernments

most

than

economically,

and

show

or

same

Europe is more of a unit, psy¬

chologically

them

of

Managed Money

in circulation

and

problems are in the individual
countries of Europe, virtually all

Europe's Uafiianageable
■

conditions

as

lull before

Spiral

The Inflationary

Different

...

the

loans

first

u s

of the taxpayer,
t i 1 y. Outstanding
this

of

in

faster

risen

have

half

year

than

.A. 10% cut in private
imposed on the banks for
half will not do the

before.
loans

the

second

trick

either, because it does not
apply to, borrowing by pub 1 i c
bodies.
The tax increases and
subsidy reductions in Mr. Butier's
(Chancellor of the Exchequer)
October budget were so mild that
the London stock exchange re¬
acted to them

Yet,

by going up.

Butler's

budget

proposal

element of real sig¬

contained

one

nificance:

eventually to eliminate
new housing and

the subsidies to

pression before they take hold of

First
ST.

National
PAUL

Bank

Building

1, MINNESOTA

been stable for the last few years,

legedly

SHAUGHNESSY 8C COMPANY, INC.

Switzerland,

the economy.

raise the ceiling on controlled
rents. The former measure should

but the unions are clamoring for
higher wages and shorter hours.

help to reduce the peacetime rec¬
ord high deficit in Britain's cur¬

The

rent budget ("under the line," as
if that would make any differ¬

"blind"

Wise authorities al¬
are
superior
to
the
functioning of the gold-

flow-automatism.

supposed
either
is

The

permit

to

latter

is

excesses

in

direction, while the former

directed

by a system of green
and red lights, as it were.
The
drivers regulate the fuel (money)

demands

cannot

be

refused,
cost what they may to the sta¬
bility of the Swiss economy, when
a nation with nearly five million

population

registers

a

total

of

to

ence).

Between

measures

them,

the

should cut down

excessive

demand

for

on

two
the

housing.

intake of the economic motor and

keep it running on an even keel
we are being
taught.

—so
"

What is happening now in Eu¬

INVESTMENT

DEPARTMENT

rope amounts to an

Harold E. Wood & Company
Investment Securities
FIRST

NATIONAL BANK BUILDING

outright fiasco
of Managed Money, as was to be
foreseen. The men in charge are
slightly less than wise, as a rule.
Even if they were wise, they are
subject
to
political
pressures
(coming elections!) which may
not

no

SAINT PAUL




1, MINNESOTA

affect

their

judgments,

but

influence their policies. And even
if they were free
agents, there are

"lights"

by

the direction

or

which

to

tion, until it is too late.

If
a

is

proof of stability? Or

a

is

MUNICIPAL

the

How much is good or

stable,

AND

BONDS

TELETYPES

little,

bad?

it

U. S. GOVERNMENT, STATE

ac¬

is that bad?
If

BANK OF SAINT PAUL

choose

to meter the

general price level rises

THE FIRST NATIONAL

that

a

sign of the

ST P 1S9 MUNICIPAL DEPARTMENT
ST

P

132

TRADING

DEPARTMENT

Volume 182

Number 5490

.

.

The Commercial and Financial Chronicle

.

Why should one not build while
the government pays the differ¬
ence

paid

and

the

between

to

high

the

struction?

to

of

cost

Why should
is

occupied

rent

rent

be

And

control?

the

the
go

psycho¬

people

sober

of

took

courage

The

up.

Welfarism

core

is

at

ures

confidence

very

stake—it

rencies,

far, these decisive meas¬
paper only. They are
be put over in very
doses, stretched over a long
of

such

wages

be

has

erated.
tive

they

3%

a

indicate

willing

take

to

unemployment,

ing about four times
seekers

as

are

as

at

atism

the

And

what if

3%

It

the

of

problem

imbalance

recurrent
and
uninhibited
demands

stop

inflation:

by

stop¬

the

gold

But

standard ac¬
that is exactly

Managed Money cannot do.
is

such

fare

turned

over-expansion — are
compatible. But both
As

super-powerful

for

constitutionally

heroic

effort

as

Europe
real

as

progress

Faced with
it

a

does

back.

a

not

whole

in

new

has

unfit

made

a

State.

It

must

that

"liberalization," it is not

*France
raised

of

nor

(sharper exchange and

Such

policies,

as

Holland

have

not

even

the

official discount rates,
undertake anything to slow

credit

position

worries

import restrictions, and devalua¬
tions.

they

inflation. Yet, their dol¬
is worsening and their labor
cumulating. The Netherlands
are
resorting now to higher taxes and
reduced depreciation allowances,
cutting
their
perennial
budgetary
deficit.
The
huge hole in the budget is one constant
element in France's
changing politics.
lar

crises:

and

yet their

as

did

down

resort¬

ing to the methods used in previ¬
ous

of

months

the Lon¬

let

—

OF

are

1930-31

1929 -30

HenryT.Ferriss

Trowbridge Callaway

Supposedly, the gold standard
broke down in the Great
Depres¬
sion.1* If so, what is
now
in Europe?

be

not

is

its

gold

"dead."

breaking down
Surely, it can¬

standard

which

The

Keynesians have
easy answer, of course: Europe

an

should

argument

be

obvious.

Gammack

Jesup Lamont Partner
On

been at least

will

because

Jan.

1

Russell

F.

Rabone

&

partially abandoned
they did not work. They

have been instrumental

in

bring¬

ing about the lack of adaptability
and flexibility, the high costs of
imports and the low productivity,
the

rigor

mortis

of

become

a

in

partner

Jesup

Lamont, 26 Broadway, New
York City, members of the New
York Stock Exchange.

Ruprecht

Admit

admitted to limited partnership
Gammack
New

Jan.

&

York

New

Vercoe to Admit

to

Boecklin will be

von

Ill

by

COLUMBUS,

mo¬

Walters

nopolies.

to

on

Ohio—Leland

Stock

Exchange,

r~WkJE.

South

Dakota,

and U. S. Government bonds

partnership

bers

in

Vercoe

the New York

of

&

New

Co.,

mem¬

partner in Drysdale

a

Quebes Power Agency

sociated

with

the

firm

as

as¬

stock

Broadway,
Jan.

trader.

Drysdale Partner

Nicholas F. Novak will become

Stock Ex¬

Mr. Walters has been

change.

New

York

& Co., 71

City,

A

issue of $50,000,000 of
25-year debentures of the
Quebec Hydro-Electric Commis¬
new

3-% %

publicly in the
United States on Dec. 14 by an
investment banking group headed
jointly by The First Boston Cor¬
poration and A. E. Ames & Co.
Incorporated.
which

est

by

as

the

NORTH DAKOTA

MONTANA

SOUTH DAKOTA

MUNICIPAL AND STATE BONDS

debentures,
uncondi¬

to principal and inter¬

the

Canada,

The

guaranteed

are

tionally

MINNESOTA

offered

was

Province

of

priced

are

option

TWIN CITY STOCKS

Quebec,
99 %

at

and

1, 1956.

redeemable

are

of the

Commission

ALLISON-WILLIAMS COMPANY

from

the

ATlantic 3475

TWX MP 163

,

SagiaHsiaEiaiaMaMsiaiaiaisMaiaiaMsiaiaHsiaHaiaiaisHaraiaHsaiaiaHaiaisiaa

finance in part a $495,000,000 con¬
struction program for the period

September, 1955, through the
1962.

The

chief

is

1,400,000 kilowatts
mis

River

St.

Lawrence

which

miles

below

units

are

of

development

generating
installed

total

a

year

objective of the

the

electric

with

178

sale will be

MINNEAPOLIS, MINNESOTA
Phone:

used by the Commission to repay
$8,000,000 in bank loans and to

program

★

EXCHANGE

the Bersi-

on

River

scheduled

MEMBERS MIDWEST STOCK

Rapacity of

flows

Quebec

Kalman & Company, Inc.

plants

into

the
200

some

City. Three
for comple¬

UNDERWRITERS & DISTRIBUTORS
CORPORATE & MUNICIPAL SECURITIES

tion in 1956, two in 1957 and three
in 1958, with an aggregate capa¬

city

900,000
kilowatts.
The
plant of 500,000 kilowatts
capacity is scheduled for com¬
pletion in 1960.
of

second

SMITH, POLIAN & COMPANY
Stock

mission

revenues

the

for

$50,430,000,
the period

active retail interest in:

an

Operating
ended Sept.

Exchange

Underwriters and Distributors

We have

UTAH

POWER

COMPANY

Common

Mcknight

ENDICOTT BLDG.

building

MINNEAPOLIS 4,

ST.

MINN.

mp

nine

PAUL

1,

MINN.

TELETYPES—

teletype—
ST

120

P

ST P

of the Com¬

93

(Corporate

117

Dept.)

(Municipal Dept.)

months

30, 1955, amounted to

and

net income
$17,651,000.

for

Giving effect to the sale of
funded debt of

new

was

debentures,

Commission will consist of

SOUTHERN

the

$378,-

982,600.

Piper, Jaffray & Hopwood
1895

ESTABLISHED

SOUTHERN CALIFORNIA WATER COMPANY Common
EDISON

SAULT

ELECTRIC

Form Sec. Underwriters
COMPANY

UNDERWRITERS & DISTRIBUTORS

Common

WASHINGTON NATURAL GAS CO. Common

SALT

curity

National Bank Building

OMAHA

East

a

2, NEBRASKA

Teletype—OM

5065

180—181

CITY, Utah—Se¬

formed

Arlin

of

with

America
offices

CORPORATE & MUNICIPAL

Grayson,

Davidson

Officers

A.

MEMBERS

are

President;

and

Thomas

L.

NEW

AMERICAN
.

,!

STOCK

YORK

STOCK

MIDWEST

formerly

investment
name

age

of

Co.

conducted

business

Trans-Western
*

his

under

own

the

Broker¬

EXCHANGE

EXCHANGE

STOCK

Moore, Vice-Presidents and Julie
A. Grayson, Secretary. Mr. David¬
son

SECURITIES

at

Broadway, to engage in

securities business.

Michael

Telephone—JAckson




been

117

Omaha

LAKE

Underwriters

has
424

on

12.

Offered lo Investors

two

Midwest

on

■

A.

Jan. 1 will be admitted

Huntington Bank Building,

$50 Million Bonds of

Proceeds

Specialists in state and municipal bonds of

Members

in.

Broadway,

City, members of the

York
1.

Co.,

eco¬

many

nomic organs hamstrung

Jan. 1, 1961 and thereafter at
prices ranging from 103 if called
on
or
prior to Dec. 31, 1964, to
par after Dec. 31, 1976.

J.f

MP

/////////////////////^^^

import quotas, exchange restric¬
tions, interstate clearing arrange¬
ments, shunting transactions and
similar practices — which have

MINNEAPOLIS

—

M.Pope

on

NATIONAL BANK

Minnesota, North Dakota and

Allan

Its

implication is that Europe should
return to de-liberalized
trade, to

at

DEPARTMENT

TELETYPE

1931-32

ago:

hope, he said,

us

The debentures

FIRST

presidents

shall not fall into it.

we

accrued interest from Jan.

INVESTMENT

past

will have to

we

maintain full

shortage,

measure

iba

the edge of an economic

on

precipice

sion

try to turn the clock

Having tasted

couple

lifetime,

for

fine, provided prices do
much; deflation (of sorts)
is permissible provided
employ¬
ment, prices and wages do not

direction.

one

dollar

not

"musts,"

a

not rise

Stability

vs.

a

our

walk

flation is

Employment

simply
are

British statesman told this

a

writer

employment. But it is responsible
for a stable price
level, too, or
something approximating it. In¬

coal miners and of the rest?

Full

say,

objectives—staoility and

if you wish to be re-elected.

reform,
from top to
bottom, of the Wel¬

be still not enough to trim

greed

the

That is what the autom¬

of

what

Publicly, they are most re¬
luctant to do so; they are not sure
of the reliability of their own fol¬

lowing.

of

the

complishes.

job

pres¬

ent.

out to

to

way

ping it.

the

mean¬

many

available

by

The

met.

labor, the outcroppings of in¬
flation.
And there is only one

that

on

resilient

of

Privately, the Conserva¬

are

that

ever-more

more or less, and
cost-price circle accel¬

authorities

been

created

likely

are

not

remains

satisfied,

the vicious

chin

es¬

Unless major

bor's reckless demands

Money is

more

to be short-lived. As long as Full
Employment, or a condition ap¬
proximating it, is being artificially
maintained, the fundamental issue

unemploy¬
being brought about —
job for any politician!—la¬

some

far

and

plunge,* Needless to

a

two

However, the steps toward dis-' liberalization, to say nothing of
the actual steps toward
are modest, indeed.*
currency
Their success, if any, is bound convertibility. The fallacy of this

is

ment

to

an

have been undertaken.

as

the

inflation

"mor¬

or

bound to

are

cur¬

sterling,

Managed

doses

negligible.

Europe, legally

over

calator.

is

take

129

than
its
hamstrung and' strait- "is too weak, they claim, to
carry
jacketed predecessor.
the burden of international trade

to still higher wage demands since
the cost of living is to go up; and

ally,"

quo,

the respective

pound

stronger

What
is
worse, they will incite the unions

all

in

"Liberalized"

In the visible fu¬

effect

systems

the

inflation

on

ture, the
might
be

day. Disinrather than

in
particular, may be restored—for
a while—by such gestures of dis¬

merely to raise the

period of time.

the

This is very impor¬
tant; it means the possibility that

supposed to
small

in

the program.

so

are

the

of

freezing the inflated status

on

issue.
But

order

flating

Welfare State will
long way to make the Brit¬

a

the

are

runaway

ish

"bear

invest

and f seek
to
penalize
who
invest
in
success").
Instead, "orthodox", monetary, fis¬
cal and financial methods, if any,

under

logical effect of putting reins

it,

who

those

move

sheltered

puts

those

on

...

failures,

con¬

one

"Economist"

less

modest shelters while the

more

one

low

don

(2653)

MINNEAPOLIS
GREAT FALLS

(ASSOCIATE)

EXCHANGE

ST. PAUL
BILLINGS

130

(2654)

The Commercial and Financial Chronicle

Savings-Loan Assns.

on

Federal Home Loan Board

announces

a

billion

new

WASHINGTON, D. C., Dec. 13
Federal

Board

has

policy

of

stand-by

somewhat

laxes

Home

Loan

announced

Bank

a

credit

new

which

the

credit

straints

-

re¬

im¬

posed

last

tightening
measures
instituted.
The Board has
the credit picture, and
has thoroughly discussed various
proposals to modify the restraints
with the Bank presidents at their

committees

Board

W. McAllister.
"Under
1

n e w r u

said

e

Mr.

This

s,"

lister,

"s t

a

a

der

d-b y

n

credit

W.

W.

control,"

equivalent

to

had

be

reduced

any

made
?

considerable

exceed

of

tions

such

accounts.
of

assurance

funds

for

advances, associaplan and make new

can

commitments
ture

loan

freely for fu-

lending.

and

more

Should net savings
repayments be inade-

quate to meet loan demands, associations
credit
are

unused

eligible

course,

its

with

lines

of

full

vances

line
to

cre^''

for

member

a

on

of

meet

credit

new
...

a

.

this

In

quarter,,

will

h

through

Dec^

9,

1954

was

amount

••

Corp.

the

was

corporation
curtailed ' Saturday
cuncmcu

completely
ot ..uumpu.ieiy

,

__

be

^rd's" Wneral Rotors

about $1.6 billion, approximately
the same volume a;> at the end of

at
over "l®'total

outstanding

last year.
riatinn(;

ad-

$1-8

the

will

1

"

th,,-

fjnanrpri

£

mnct

reduction

commitments

lending
g

will
vear
yea

have
—

S ?

i

y>

"This

their

year

■

ot

?,ec.n"e

u?

aj

Buick and

up-

the

Independent

scene,

"Ward's" stated, American Motors

'showed

96>1% of th
f J°ihtk
for the

at

be

an

steeimaking

pntirp
entire

4,500

of 99.3% of

average

for

the

beginning

week

$

compared

q{
vised)

compared wdh 100.1%

as

and 2>416)oo0 tons (reweek ago.

a

The industry's ingot production
rate

the

for

tons

time

announced dealer or-

For the

rate

the

INDUSTRIAL
RAILROAD

—

jtime yearly mark in the making;

DEALERS

,362,577

like week

PUBLIC UTILITY

rent record of 366,535

cur¬

cars was

set

Electric

and

Steel

Operations

To Drop to

*

Set

This

Week

99.3% of Capacity

Record in the

Ended

by

Dec.

10

•

,

,

"

MASON-HAGAN, INC.
Members

Philadelphia-Baltimore Stock Exchange

1110 E. Main St.

Telephone 2-2841

•

the

electric

/

-

The year's end will

nrpHip'tpri
predicted. Thp
The
is shaping up to-

continue,, "Stppl"
"Steel"

Teletype RH 460

fourth

S

$

ward

quarter

31.200.000-ton

a

highest rate of the

estimated

was

a

new

at

11,426,000,000

all-time high record

fdr, steel

,

is

by

Anderson & Strudwick

are

scrap,

high

steelmaking
Dec.

composite
ous

DISTRIBUTORS

price
scrap

7.

was

A

was

in

said

ity

production

United

ACTIVE MARKETS IN LOCAL
SECURITIES

mand

Last

there

Climbed

7.6%

Holiday

Thanksgiving

the

the

of

reported

agency

28,355 trucks made in
This compared

were

and 22,031 a year ago.
Canadian output last week was

at
6,505
cars
and 751;
In the previous week Do-•

placed
trucks.

minion plants built 6,624 cars and
638 trucks, and for_the compar1954

4,604

week,

Edge Slightly Higher
Commercial and industrial fail- 1
ures

slightly

rose

the Drecedin^ week

^

streei' inc->

P°

Despite this

•

curred, although they were a little
the

1953

tinuing

below
were

for

7.6% above

Association
the

level,

prewar

the

in

recorded

did

reach

not

Small

ago.

year

to

rose

more

or

but

with

to

and

34

33

in

of

week

ended

189

failures,

liabilities

dipped

under

from

last

38

Twelve

1954.

Underwritars

was

steel

businesses had liabilities ;
in excess of $100,000 as against 14;
in the preceding week.
service

commercial»«
the

for

accounted

Principal Office

£0 from 12. Wholesaling failures

held steady at 25, re.ailing dipped
from

98

to

105

and

construction

declined to 25 from 31. More

failed

retailers

equalled

other

In

last

than

lines,

States
States.
West

including
East

807 E. Main St.
P.

Tel.

O.

Box

1459

7-3077, L. D.
Tele. RH 563




CHARLOTTESVILLE,

VA,

failures'

the

North

reoorted
Pacific
Central

and
the
New
England
No change occurred in the

North

Central

or

the East

Distributors

Dealers

LOCAL SECURITIES

and

extras

cold-rolled

97

to

ton.

Warehouses

alter

scattered
.

■

r*-i*

are

EXCHANGE

C. F. CASSELL & CO., Inc.

beginning

their

prices

changes by mills,

to

STOCK

carbon

price

"Steel" further noted.

PHILADELPHIA-BALTIMORE

on

were revised,
most of the
changes being upward of $1 to $4

a

MEMBER

continue their

Price

sheets

1150

Tel. 2-8181

Tele. CHARVL

trend.

hot-rolled

110 Second St., N.E.
P. O. Box

197

upward

114 Third Street, N. E., Charlottesville, Ya.

reflect
Phone

2-8157-8-9

Bell

year'i

a year ago. '•

Six of the nine regions
the

man¬

their 1954

and

Steel prices also

Branch Office

rise1

the week, with the toll;
among manufacturers climbing to
51 from 36 and among services to
during

collection

RICHMOND, VA.

-»

failing

the

States, strong export de¬
winter's handicaps on
and shipment of scrap.

af

week
of the-!

MUNICIPAL BONDS

capac¬

in

171 i

of

those
$5,000,

VIRGINIA

$48.

thrust

$5.-:'

of

186 from
the

on

week

•

comparable.

with liabilities

Failures
000

preceding Thanksgiving hoh-, States
Loadings

Con- '

of 216.

toll

the

down 26% from the;

increases,

the

m

increase, failures were not as nu-r"
merous as last year when 223 oc-*

creased 51.531

week,

the*

209

Dun & Brad-

'

t

dropped slightly below

or

in

219

to

^kl^eTl>ec sVom

level.

revenue

cars

and

cars

Business Failures Continue to

freight for
the week ended Dec. 3, 1S55, in¬
Loadings of

ago, the
The previ¬

upward

as¬

the United States.

and

Week

month

$45.33.

the

week

reached

in scrap prices stems from

INVESTMENT SECURITIES

by

trucks were

22,031

sembled.

An all-

composite

high in January, 1951

"Steel"

too,

it added.

of $48.67

"Steel's"

ended

being set,

and

cars

ufacturers

American Railroads reports.

summer.

time

.

Loadings

next

prices for

—

Car

day

Records

increase of 3 590 units

an

the

Manufacturing and

This week's output increased
67,000,000 kwh. above that of the
previous week; it increased 1,580,000,000 kwh. or 16.0% above
the comparable 1954 week and
2.765.000.000
2,765,000,000 kwh. over the like
kwh. over the like
week in 1953.

railroads to order rails for laying

BONDS

PREFERRED and COMMON STOCKS

UNDERWRITERS

year.

unabated,
;the rrietalworking weekly report¬
ed.
Everyone is confident of a
strong first half for 1956 and is
ordering steel accordingly.
The
high rate of activity is prompting

and

UTILITY, RAILROAD, INDUSTRIAL

output, the

1955,

when
11,359,000,000
kwh. were
produced, according to the Edison

Above

Demand

STATE
MUNICIPAL

see a

0r

declined by 177 vehicles
|
" ' "
during the week.
In the corre¬
sponding week last year 148,692

light

Electric Institute,

-rnntinnp
•

units

.

cars "
209 834 :

to

,

industry for the week
Saturday, Dec. 10,
1955,

irj the week ended Dec. 3,

net tons.

amounted

trucks

and

297

power

by the end of this week,
"Steel" ^magazine stated on Monday last.

total production of 117,000,000 net
tons
if
current
operating rates

Richmond 10, Va.

;

energy

Output of steel for ingots and
castings this week will bring the
year's production up to 112,600,000

I

(revised)
past

177,712

week of 1939.

electric

of

amount

distributed

kwh.,

.net tons
*

with

previuus
previous week. The
week's production total of

failures

Steel " production
will top the' for the industry. The previous all'1953 all-time record of 111,600,000 time high record was established

AND REVENUE BONDS

the

the
lXie

above

Fresh

a

1

VIRGINIA AND GENERAL MARKET MUNICIPAL

an

compared

produ^-

Attains

Output

Week

The

ended

SECURITIES

bled

able

1854.

All-Time High

and

;in 1953.

BANK & INSURANCE

ago.;
industry assem¬
estimated
181,479 cars, ;

Last week

month ago

a

99.2%

was

of Jan. 1,

as

have been built .this.

.cars-

in Canada to date; the

>year

fiQ2

1

748 trucks.

1955.

An

DISTRIBUTORS

148,692 cars tnrnpd 1
turned

than +Vlo
the

more

-

2 1%'

22*1% "'

out in the similar week a year

of 125.-

annual capacity of 124,330,410

on

tons

analysis, of Canadian auto"motive activities shows an all-

u?Pnnrf<; "-roqp

,

1,

Jan.

of

as

is

1955

annual capacity

on

828,310

in

weeks

to

ders for sonie 36,000 new cars.

'-'Ward's

to

according

f

-and

the

cars

.same

—

,

<Dec* 12' 1955, equivalent to 2,397,- with 28,532 in the previous week

3,622 in The operating rate is not comparthe prior Week. Studebaker-Pack-, able because capacity was lower
,ard jumped'to a 36-week high in than capacity in 1955.
The perweekly production, and
at the "centage iigures for 1954 are based

ts

UNDERWRITERS

% Over Like Week of 1954

1955,

v

i^ndrv
industry

biggest climb of all Jion 2,394,009 tons. A year ago the
.companies percentage *■ wise at actual
weekly
production
was
^ 2%> ^ pianning to build pIaced at 1>950,0oo tons or 81.8%.

biggest

s:

i

h

canacitv

based

annroximate
app oximate

an

torjne

Tior.i,-^Q

"^ges as Saturday work was
On

Mr. McAllister said,

Iron

j
m te, almounced
that
the
op8rating rate of steel companies
.

castings

Cadillac looked for significant

in

their

of

out

r;

output

American

capacity

projec-

*

and

rec-vabov;

axQ,*7'^ 000, tons of ir.got and steel for

f^anced most General Motors while

billion

resources."

members

°

Savings and loan asso-o

hnvp

Clat'°ns

Jan.

on

only 87,500,000 gross

The 95,800,000 gross-ton

The

will

^

4.3% from the previous session.

9,

in
record-.m

lone ference.-;

The

agency.

steel's

to

Prior Week

Above

preceding week's out- '
ord was set in 1953, the previous
«pjjt states '"Ward's "
top year of steel production. Im-^
Last
week's
car
output
ad-■
ports totaling around 21,500,000 vanced above that of the previous
tons will make up this year's dif- week
by 3167 cars> while truck ,

week preceding, reported the sta-

Mistical

a v e

commitments, of which about
will
be
outstanding.

prior

drawals," he added.

ments totaled

7,518,463

at

>the past week^ from that-of the

jsome

Therefore, the total commitments

own

with-

to

billion

$1

use

for

emergency

million.

"Of

always

can

stood

assembly lines halted
Saturday afternoon. The fig¬

ure

in

It

end.

contrast,

SOn's Lake Superior iron ore ship-

when

_

of

<?uhiect in thesP limitation*

In

firm which anticipated a.cutdown

outstanding to
10%

tons.

units

commit-

these, old

institutions

available

year's

of

December

Industry

Rises

Output

Automotive

S.

Output in the automotive indus-;
try for the latest week ended Dec.

breaking production pace, the sea-

5,108,383.
Chrysler

will

above
the
corresponding
1954.
week, and an increase of 66,190 ..
cars,
or
10% above the corre-sponding week in 1953.
U.

4

page

.

un¬

billion

$2.4

member

member do not

jrom

commitments, including loans in process. By the end
rnents

asso-

vear"

of-1954.
'
'
At the same time, it
declare^
production for 1955 was expected
to reach : 8,000,000, units by the

institutions in

commitments

$600

this

in-

the

reflects

5% of its aggregate withdrawable
accounts, provided total advances

With

the

construction

amount

with the

prosperous

Fabricators of structural steel
capacity with a 184,279-unit showraunwiuis
ui
suuciuiai
sieei
ing, it observed, v ., are raising quotes to protect themThe current week's turnout, said selves
against
possible
higher
"Ward's"
was
2.1%
over
-last prices of plain material. Fabriweek's output of 177,712 cars, and .cated structural steel prices are
22.1% more than the 148,692 cars $ko to $30 a ton higher than they
built in the corresponding.week-were at midyear.

declared Mr. Mc¬
September member

"In

associations

McAllister

stitution the privilege of borrow¬
ing from the Federal Home Loan
an

their

Allister.

gives

member in¬

Bank,

from

policy

of member

bringing

placed

1955 their most

Dec. 3, 1955, totaled 728,216 cars,.
increase of 66,439 cars, or 10%

an

22.1

-

new

success

Mc-

A 1

invited

government.

the

of savings

5%

than

The State of Trade and

dustry's .national trade assoclations, and fiscal agencies of the

Chair¬

that

ciations has contributed to making

were

according to
Walter

money

December 15,1955.

Thursday,

.

2.1%

November, the Savings and Loan
Advisory
Council
in
October,

man

of all members' savings.
The recent improvement in the amount

less

represents

Continued

conferences in September and

1 y

u

$3

-

and
Septe mbe r,

J

The

some

System

reviewed

re-

1954.

in
of

has been borrowed from the Bank

The Board's action today is the
of continuous study since
credit

than

amount

result

the

billion,

$11.5

more

over-all

policy of stand-by credit.
•—The

of

volume

Ease Credit Restraints

.

.

Teletype—CHARVL 93

Volume 182

South

Number 5490

Central' States.

decline

during

the

.

.

The

.

The Commercial and Financial Chronicle

only

week

took

place in the Middle Atlantic States
which had 63

against 80

as

Failures

ago.

ceeded

the

equalled

1954

level

week

a

or

in

ex¬

five

re¬

gions but dropped slightly below

There

.

prices

was

the

slight rise in flour

a

past

week.

and durum blends

Semolina

especially

were

popular, while bookings for bak¬
grades

ery

scattered.

were

Buy¬

are
deferring
replacement
bookings as long as possible, ex¬
pecting a more plentiful supply
ers

(2655)

week

131

preceding.

reported

Haberdashers
increase in sales in

an

neckwear, white dress shirts and
hats.

The

call

for

Winter

IBA PAST PRESIDENTS

suits

high and steady and interest
topcoats rose somewhat.

was

in

There was a slight rise in pur¬
chases of household
furnishings
and lower prices after the turn of
during the week, and the total
West North -Central and Pacific the
year,
'
>
/ volume
moderately exceeded that
States.
; •
Coffee ' prices
dropped
some¬
of a year ago. Best sellers in fur¬
: Twenty-three Canadian failures' what, and were at a level consid¬
niture were couches and dining
were reported as
compared with erably below that of a year ago. room sets; sales in
bedding and
32 in the "preceding week and~J22
'"Brazilian coffee prices fell no¬ upholstered chairs were main¬
Win the similar^veek of 1954.
ticeably, while those of Columbia tained at the high level of the

last year in four
regions, the Mid-

»dle

.

Atlantic, East-North Central,

.

-

"""

^-Wholesale
«

£ood Pric$ Index Holds

^^VFive-Year Low

....

Following

the-declmes of.recent
the
Dun
&
Bradstreet
Wholesale Food Price Index re-

...

weeks/

mained-rsteady the: past week at
the

lowest

1950,

level

since

June

20,

few days

before the Ko¬
began, when the index
stood at $5.96.
The Dec. 6 index
held at $o.99 but was down 12.3%
a

rean

war

from the year-ago figure of
$6.83.
Prices
advanced
last
week
on

advanced.
Brazil

Coffee clearances from

SL-total of 425,000.bags exported,
as compared with 304,000 bags the
previous week. Of this total for
weeks

two

were des¬
States, 119,and 35,000 for all
destinations.
Despite con¬

tined for
000

United

siderable dealer

with

stocks

gain

a

sharply
bags; total

expanded

of

9,300

■

flour, wheat, corn, rye, oats, bar¬
ley, cottonseed oil, cocoa, eggs and
On the down side

currants.

were

hams, bellies, lard, butter, sugar,
coffee, potatoes, steers, hogs and
lambs.

■

The

index

use

the

represents

sum

its

and

chief

function

general trend of food
prices at the wholesale level.

Wholesale Commodity Price Index
Rose Slightly Above Level of
Previous Week
The daily wholesale commodity

index, compiled by Dun &
Bradstreet, Inc., fluctuated within
narrow, range

slightly

last

above

week

that

at

of

a

the

previous week. The index finished
at 276.91

275.87
on

a

»the

year.

Dec. 6, compared with

on

week

earlier

277.83

and

corresponding

date

last

2,500

pal gains in corn, rye and wheat.

Although

prices

corn

siderably, the level

rose

con¬

noticeably

was

below that of the comparable pe¬
riod
a
year
ago.
Export deals

developed

with

Denmark

and

boosting

corn
prices somewhat.
Cold weather in the Middle West

The

Despite recent advances in price

and demand, corn growers consid¬

placing

An

ports

a

record

in

crop

hands.

as

a

in the

near

future

below that of last year.

to West

Soybean

prices fell slightly, as heavy stocks
accumulated

However,

a

at

the

mills.

rise is anticipated, as

orders from soybean oil and meal

processors
are
expected to in¬
crease in the near future. In addi¬

tion, export deals with Japan
contracted
clined

other

to

for

ship¬

markets

-

the

same

price of

fell moder¬

sugar

was con¬

at

last

week.

Oats

were

de¬

the

beginning of the
period, but in the end surpassed
the price of the previous week.

for

and

Grocers

slightly
y i

prices
below

cotton

e

remained

week

a

the

at

and

ago

of last year.
attracted the most

attention, while interest in old
crops
declined sharply.
Exports
for the season ending Dec. 1 were
544,185 bales, compared with 1,198,921 of the similar period last
season.

■;/
Spurted

Forward

Latest

Week

Advent

With

the

The dollar volume ex¬
panded noticeably and was mod¬
erately above the level of the
past week.

week

was

volume

Pliny Jewell

of

Ray

last "year.

moderate

housewives

nuts,

dried

showed

fruit

Buying
the

activity

major

week

ago

in

centers

buyers sought to

as

'■

a

re¬

plenish Christmas slocks.

Add
(Special

merchandise

for

Spring

increased.

dollar volume

of

The

with

moderately,

above

the

and

level

country-wide basis
the

Federal

dex

for

the

week

on

a

Board's

ended

in¬

Dec.

3,

1955, increased 3% above that of
the

like

period

of

last

and

In

year.

increase

of

For

an

corded.

period

the

in

children's

clothing,

furniture

rose

appreciably,
while
interest
in
furnishings and women's

men's

maintained

was

at

a

high "level.
The

trade

York

City
slightly to

the

year

strength
trade

tail

trade

store

dollar

in

volume

the period

of

6%

was

re¬

ended ori

in

in

the

ahead

hav? become affUiatcd
&

Coburn

H.

Connolly
C.

Middlebrook, In-

100

Trumbull

was

1954

-j-2 to

+ 6; Middle West, Northwest and
Pacific Coast +1 to +5%.

the

accessories

gloves
best

at

a

interest

lower

in

level

handbags

and

selling

last week.

dresses and suits

while

&

women's

Volume in

dropped slightly,
cloth

coats

than that of

La Salle street;

gifts

better

Board's

the

Co.

With Nelson Burbank Co.

and

(Special to The Financial Chronicle)

Pushee

'with

PALM

Mathews
Merrill

BEACH, Fla.
has

—

joined the

Sidney
staff

of

Lynch, Pierce, Fenner &

Beane, Bassett Building.

lines

showing,

the
the

like

period

of

was

the

Burbank

Com-

V

formerly with F. S. Emery & Co.,
Inc.

and

Coffin

&

Burr,

Incor-

porated.

Re¬

department

Local Industrial &

last

Utility Stocks

Trading Markets

.

In

year.

preceding week, Nov. 26, 1955,
of 6% (revised) was

Retail Distribution

recorded.

For

the

four

weeks

ending Dec. 3,

increase

of

For

1955, an
registered.

1%

was

the

STRADER, TAYLOR &CO., INC.

period Jan. 1, 1955 to Dec. 3, 1955,
the index recorded a rise of 1%
that

of

the

LYNCHBURG, VIRGINIA

corresponding

LD 39

—

5-2527

-

TWX LY 77

Two With Hincks Bros.
(Special to The Financial Chronicle)

BRIDGEPORT,
worth

Conn.

—

Ells¬

Armstrong and Everett C.

Phillips

have

become

with Hincks Bros. &

associated

SCOTT, HORNER & MASOH

Main

Street, members of the Mid¬

west

Stock

1955

1932

Exchange.

IN

LYNCHBURG, VA.

CaMJ(yncA(ruSiy
VIRGINIA
•

W. VA.

Telephone 8-2821

3fe£etijf2£*.
Corporate LY 62 & 63

Municipal Bonds
Unlisted Securities

Underwriters
15,. VIRGINIA

& Distributors
Teletype RH 83 & 84

mc

Co., Inc., 872

STATE and MUNICIPAL BONDS




S.

pany' 80 Federal Street. He was

Corporate Stocks and Bonds

RICHMOND

Nelson

increase

CRAIGIE & CO.
STREET

H.

associated

Securities

Federal

index,

F. W.

Telephone 3-9137

George

Municipal Bonds and Corporate

N. CAR.

MAIN

—

become

(Special to The Financial Chronicle)

municipal bonds

EAST

has

of

New York
City for
weekly period ended Dec. 3,
1955, decreased 3% below that of

NORTH and SOUTH CAROLINA

616

-

1,1

VIRGINIA-WEST VIRGINIA

DEALERS

Ma-

■

>

BOSTON, Mass.

following percent¬
New England and East 0 to

Jewelry,

J.

Goodbody & Co.

period of 1954.

were

111.—James

Street.

formerly with

Wainwright

the

Southwest

(Special to The Financial Chronicle)

CHICAGO,

Increasing

sales in

from

and

With Milwaukee Co.

to; The Financial Chronicle)

reported.

to

of

South

■

rose

2%

Christmas

observers

levels

+ 4;

■

New

level.

ago

varied

ages:

i

1,

week

past

about

from

comparable

1

re¬

Jan.

volume

the

Wednesday of last week was 1 to
5% higher than a year ago, ac¬
cording to estimates by Dun &
Bradstreet, Inc. Regional estimates
the

•'

-

the

an

total

"

,

registered above that of 1954.

Retail

According

juvenile

'

'

the preceding week, Nov. 26,
1955,
an increase of
10% was reported.
For the four weeks ended Dec.
3,

gains.

Volume

'

the

taken from

as

Reserve

'

Merrill Lynch Adds

sales

store

'

•

was

of

corresponding 1954 week.
Department

'

Connolly & Hails

corporated,

total

wholesale trade

'

HARTFORD, Conn.—Walter J. looly is now associated with the
Connolly, Jr. and Raymond R. Milwaukee
Company, 135 South

Mr.
orders

'4

Coburn & Middlebrook

and

quickened

wholesale

'

shops reported the most consider¬

toys

John A. Prescott

in¬

candy.

accounted for

Department stores and specialty
able

Morris V

cutlery.

reported

while

shelled

was

Shoppers considerably boosted
their expenditures
at retail the

similar

the

1955 to Dec. 3, 1955, a gain of 7%

Christmas

of

glass¬

increasing interest in fresh meat.
Poultry sales dropped noticeably.
Shoppers sought
canned
goods,

1955,
Volume

Trade

and

'

week,

were

that

croo

with

television

in food purchases the
past

creases

slightly

level

china

in

upsurge

silverware

expanded

Cotton

reduced,

decreases in

call

date last year.

"

y

appliances

radios..

Advance

ately the past week, and

oc¬

result of expected ex¬

Germany, Greece, Japan, Formo¬
sa, Brazil and Israel. Wheat prices
continued at a level considerably

'were

February

-

bags

of .accessories

portion

Federal

upturn in wheat prices

curred

an

'

«

major

increased, while there

serve

corn-feeding of hogs,
raising the demand in that area.

*

The
ware

contract¬

were

and

siderably below that of the similar

stimulated

1955

sets

period.

other Western European countries,

the

Commis¬

Trade

,

Grain prices the past week ad¬
vanced moderately, with princi¬

ered

Cocoa

Sales

were

importers
according to

bags,

January

ment.

Brazilian

of

States

These orders

for

In

"1

13;000

Bahia

sion.

same

price

a

totaled

the

Sales

United

totaled

stocks

cocoa

tons.

to

cocoa

is

to show the

level

286,000

ed

total of the price per pound of 31
raw tooastuifs and meats in
gen¬
eral

warehouse

noticeable

'

.

in

considerably

,was

buying, wholesale

prices fell last week. Ware¬

cocoa

house

Volume

271,000

ago

the

for Europe

other

previous week;,

heavy last week, with

were

Municipal LY 82

The Commercial and Financial Chronicle

\

132

respect

Continued,

from first page

A

Committee on
Segregation (of the underwriting
has been
investment house other than his and brokerage operations), 1939;
Governor, 1948-1951; Vice-Presi¬
cwn firm, founded in 1927.
He
is
a
native
of California dent, 1951-1952; Education Com¬
(born in Alder Springs) and at¬ mittee, 1949-1953; and Small Busi¬
ness
Committee, 1953-1955.
tended the University of Oregon
During the days of the National
and the University of California.
Upon completion of his formal ed¬ Recovery Administration and lead¬
ucation in 1918, he was employed ing up to the establishment of the
National Association of Security
by Thos. A. Edison Co. as a sales
representative and shortly there- Dealers, Inc. in 1939, Mr. Davis
alter was appointed Sales Mana¬ held many positions of regional
Chairman,
Cali¬
ger of
the San Francisco retail responsibility:
office.

ties:

past 34 years and
affiliated with but one
the

Fuse

(Chicago)

1934-1936;

In

selling

Dealers

his interest and energy to

field.

vestment
Los

He

office

Angeles

and

Anglo

America, 1938-1940; Vice-Chair¬
Committee on Customers
Men, San Francisco Stock Ex¬
change, 1939.

California Trust Co. of San Fran¬
cisco

years to

He

has

bond
after six

resigned

as

In

form Davis, Skaggs & Co.

engage

stock

man,

the

represented

in San Francisco

salesman.

with

later

and

company

in

Francisco

a

member

Stock

the

of

2

Throughout

his

special edition devoted prim¬

Vicemember,

Davis

was

Pres¬

Bond

Francisco

San

1942;"Governor, San Fran¬
cisco Stock Exchange, 1952; Vice-

business, Mr. Davis has

Francisco

Chairman,

Exchange,

energetically in the in¬
terests of the industry.
At both
the regional and national levels he
has held many positions of lead¬
ership.
He served the IBA na¬
tionally in the following capaci¬

San

Stock

1955.

The early

Education
used

the

has for
lecturer
salesmanship and sales admin¬

istration

the

at

Institute

annual

of Investment Banking,

in-America

the Institute of Investment Bank¬

ing, the fifth session of which was
conducted

by the Wharton School

The institute

tion

Wharton

School of Finance and Commerce,

It is

University of Pennsylvania.

offering

salesmanship

his

program at the Institute, notwith¬
standing the responsibilities he as¬

Davis has

Mr.

also

the

tributed

JONES, KREEGER & HEWITT
PHILADELPHIA.BALTIMORE

STOCK

participated

1939; President and Di¬
Pinecrest Permittees As¬

sociation, 1940-1944; President and
Honorary Member, San Francisco
Sales Executives Association, 1934.

Gabriel

Hauge,

Assistant

to

United

of

Chairman

lee

Hon.

Administrative

the

President

States;

Philip
the

Electric

General

the

were

of

of

Board

the

the

Company; Harl-

Branch, Jr.,

EXCHANGE

EXCHANGE

President of the

1625

EYE

WASHINGTON

6,

STREET,

N.

W.

after Easter, whereas in past years
Institute met the week pre¬

ceding Easter. All those who have
been
registered
in
past
years
either for the Investment Banking

D. C.

TELETYPE

7-5700

addresses

full

in

Reports

issue, starting

text

given

are

on page

Education

Committee

Year's

On

The IBA

67

WIRE

&

Mead,

that

31.]

National

have

been

dates, and in¬
promotion of next

The

Committee

creasingly
learning

that

noted

institutions

Mississippi

from

Incorporated,

Company,

England
Arnold, F. S. Mose-

Warren D.

ley

&

Co., Boston.

$55,000

a

Reports

contributions from

in

A.

Alexisson, Granbery, Marache & Co., New York
Rudolf Smutny, Salomon Bros.
& Hutzler, New York.
Richard

H.

Rocky Mountain
J.
Coughlin, Coughlin
Company, Denver.

Walter
and

Texas
Thomas

12

banking houses toward

ing.

Chair of Investment Bank¬

Tha

Wharton

School

many

ways

Jr.,

Western

Pennsylvania
Singer, Deane
Scribner, Pittsburgh.

Charles N. Fisher,
&

GROUP

and cordial relations have existed

CHAIRMEN

The

Group Chairmen of the
year 1955-1956 are as follows:

Continued

the years.

on

page

Education

Mead,

of

Miller

&

Baltimore,r reported

Com¬

to

the

Underwriters & Distributors of

following

MUNICIPAL

it

years,

has

and

CORPORATE

resumed

of

SECURITIES

,

bulle¬

two

designed

serve

a

as

—

clearing house
MEMBERS
NEW

YORK

STOCK

for

EXCHANGE

the

ex¬

STERNE, AGEE & LEACH

of

change

and

member

and
ences

in

Members

ideas
experi¬

Group
BRANCH

OFFICE

ALEXANDRIA,

VIRGINIA

fields

Members

New

York

Midwest

Stock

Stock

Exchange
Exchange

the

of

re¬

cruitment,

Montgomery

Birmingham

W. Carroll Mead

se¬

lection, training, education, public
relations

and

information, adver¬

tising, direct mail and other forms
of

promotion. Bulletins distributed

during 1955 included:

Firm

IBA

Markets In

WASHINGTON

Educational

Bulletin

No.

7

(September). Special Manpower
Edition—recruitment, selecting
and retaining investment bank¬

SECURITIES

ing trainees, including the pro¬
ceedings
of
the
educational

SOUTHERN

forum conducted
Direct Private

!

Wire to

Carl M.
our

and How to

Loeb, Rhoades & Co.,

New York

by the Central
to Get Men
Keep Them."

Reproductions

Correspondent

of

IBA

Member
(July).

Advertisements, No.

10

Devoted
ESTABLISHED

advertise¬

Johnston, Lemon & Co.
MEMBERS

PHILADELPHIA-BALTIMORE

-

Educational

(December).
nual

STOCK

EXCHANGE

DISTRIBUTORS

-

DEALERS

Building, Washington 5, D. C.

Telephone: STerling 3-3130




Bell Teletype: WA 28, WA 95 & WA 503

Branch Office:

to

MARKET

MUNICIPAL

BONDS

review

Bulletin

Includes
of

No.
an

member

8

an¬

and

Group activities in the fields of

education, public relations and
promotion and a summary of
some
of the major projects of
the

Southern

entirely

GENERAL

ments.

1920

IBA

UNDERWRITERS

AND

States Group, "How

i '• i.

Alexandria, Va.

IBA

A copy

able

of this bulletin is avail¬

for

Annual

Committee.

Education

the

first

time

Convention.

It

at

this

supple¬

ments this report of the Educa¬

tion

Committee especially with

Stubbs, Smith & Lombarco, Inc.
BIRMINGHAM 3, ALABAMA

\
Telephone: 7-3175

First

has

close

and

Beckett,

Southwest Company, Dallas.

cooperated with the investment in¬

in

Northwest

Martin, Pacific
Portland.

Northwest Company,

goal of $250,000 required to en¬
a

York

New

Gustave

Pacific

During

St.

New

financial

business.

Valley
Stifel, Nicolaus

Louis.

in¬

higher

of

receiving

are

Trust

Bank and

Bert H. Horning,
&

ately following the Convention.

Activities

lapse of sev¬

to

CO.

Inc., Chicago.
Evans, Continental

Committee,
through its Chairman, W. Carroll

tins

TO

STONE

States

W.

of

year's sessions will start immedi¬

dustry

publication

DIRECT

Institute

Banking

dustry-wide

dow

its

HAYDEN.

the

notified of the 1956

investment

a

WA

for

or

Thomas B. McCabe, Presi¬
dent of the Scott Paper Company;
the
incoming
IBA
President,
George W. Davis; and retiring

eral
DISTRICT

Central

1954 the Wharton School received

Committee

Winnipeg.

Douglas Casey, A. C. Allyn and

This

support

pany;

Rich¬

James,

Baker,

D.

ardson & Sons,

spring hol¬

ident of the Georgia Power Com¬

Convention
BUILDING.

Canadian

Ralph

the

Reed,

D.

Los Angeles.

Company, Chicago.

Investment

Among the principal speakers at
Convention

Weedon & Co.,

Illinois

Seminar

Speakers at the Convention

Crowell,

Crowell,

H.

in

iday at the University, the week

the

California
Warren

Thomas

Work has already started
preparing for the 1956 sessions,

the Asso¬

beginning on Dec. 1, 1955:

Company,

to

Director, St. Francis Homes Asso¬

pany,
CAFRITZ

$2,000

of

Governors

as

ciation

the

over

STOCK

AMERICAN

than

more

is the week of the 1956

rector,

their

serve

miscellaneous income of the Asso¬

activities including: President and

ciation,

by

con¬

year

in various other business and civic

MEMBERS

EXCHANGE

this

which will be held April 2-6.

[These

STOCK

was

Institute

ELECT

have been elected
respective
Groups
to

ciation.

President of the IBA.

as

sumes

period Nov.

the

during

The following

University of Pennsylvania,
Philadelphia.

tinue

the

held

25-Nov. 30.

GOVERNORS

expected that Mr. Davis will con¬

with

cooperation

The meeting will

vention in 1956.

be

Con¬

Annual

45th

Association's

Committee.

again reported
as a financial success, and now has
a reserve of $15,000 set up out of
the net proceeds realized during
the past four years and in addi¬

in this

YORK

of

support

^elpcted
holding'of "the

thd

the site for

as

of the

sponsored

by the Investment Bankers Asso¬
ciation of America each spring in

and

NEW

-

Hotel,

Hollywood, Fla., has been

The Committee also reported on

President Walter A. Schmidt.

the years, and his forte
salesmanship and merchandis-

through
is

in

Beach

Hollywood

the work of the National Invest-

Furthermore, Mr. Davis
several years-served as
on

-

in

Published

1956.

is widely
industry.

Committee,

throughout

Invest

Electric Edison Institute and Pres¬

interest manifested by
has persisted

Davis in selling

Mr.

A training booklet, Manual
Securities Salesmanship, pre¬

to

The

9

No.

America
Week, a summary of 1955 ob¬
servances to provide a guide for

pared under the direction of Mr.
Davis and published by the IBA

as

Club,

the

in

career

the

of

was

Committee, NASD,

Mr.

1943-1946.

worked

on

Govern¬

of

and served
1940-1941;

NASD,

ident

1929.

securities

Board

District No.

San

since

Exchange

the

to

he

years,

Chairman,

ors,

co-partnership
The firm

Chester W. Skaggs.
been

subsequent

elected

in the retail bond and

business,

Presi¬

1938-1939; Executive
Committee, California Group, In¬
vestment Bankers Association of

in the

the

of

1937;

Association,

the in¬

started

Association,

ing.

California Security Dealers

dent,

transferred

Davis

Mr.

Inc.,

Conference,

1937; Chairman, Business Conduct
Committee,
California
Security

pro¬

industrial

companies.

service

1921

electrical

to

Chairman,

*

Bankers

ment

Co.

Manufacturing

&

devices

public

Committee,

Code

Regional
representative of Econ¬ Committee, District No. 2, Invest¬

California

tective

Special

NRA

fornia

Then for two years he en¬

gaged in industrial sales work as
omy

IBA

Convention

Year's

Bulletin

Educational

arily

for

Sites and Date of Next

Group

and

(to be distributed in December).

Annual Convention

IBA of America Holds 44th
Coast

member

to

Thursday, December 15,1955

activities.
IBA

to

..

.

(2656)

Teletype: BH 287

133

Volume

Number 5490

182

Continued

jrom

.

.

.

The Commercial and Financial Chronicle

132

page

;4 ;,}.
Warren

Crowell,
Co., Los Angeles.

Weedon &

Crowell,

D.
son

Baldwin, Nesbitt, Thom¬

and

liam Blair & Company,

Company, Limited, Mon¬

treal.

States

Central

Eastern

rities

Pennsylvania

Bertram M. Wilde,
Co., Philadelphia.

Janney

for

Corporation, New York.

.

Mississippi Valley
George A. Newton, G. H. Walker
Co., St. Louis.

Parker, The
tion, Boston.
Membership:

New

England
Valentine, White, Weld
& Co., Boston.
John W.

Ohio

>

Charles

F.

Valley
Conners,

Pohl

&

Rocky Mountain
Myers, Bosworth, Sul¬

Company, Inc., Denver.

Cabell

Moore,

Southern

Southwestern
Richard
&

William

Gas

Securities:

C.

Jackson, Jr.,
First
Company, Dallas.

H.

Young, Eastman, Dillon & Co.,
Railroad

Payne,

Securities:

Morgan

&

W.

J. Stern, Stern
Co., Kansas City.

Broth¬

as

1955-1956

follows:

Aviation

Securities:

&

.

.

Harding, Smith,
Co., New York.

^Canadian:

D.

K.

Baldwin, Nes¬

&

Simmons,

,

become

Isabel

general

a

P.

Walter Bernthal will

1

partner

McDermott

a

and

limited

partner in Filor, Bullard & Smyth,

Broadway,
of

Exchange.

New

Nominating Committee.

Co., Incorporated, New York.

Underwriters

cultural

called

acre

center,

"Interama",

tract

and

decision

of land

Miami

investment banking

is'

being

the

Barnett

Zoref will retire

formed

John

H.

Kirkland,

Jenks,

Kerr.

a

Bacon, Whipple to Admit

The

CHICAGO, 111.—On Jan. 3 Wil¬
liam

T.

Bacon, Jr. will become

a

partner in/Bacon, Whipple & Co.,

Lehman

135

South La

Brothers, New York City, to

mar¬

bers

of

Salle Street,

west

the New

Stock

York

and

mem¬

Mid¬

Exchanges.

Dealers in

will withdraw

Patman

partnership in Hecker & Co.
31.

U. S. Government Securities

On Dec. 31 John H. Krumbhaar,

Jr.,

and

W.

Strawbridge will
partnership in

John

and

Newbold's

H.

effective

fective

and

from

the

now

William
Bond Department

ATLANTIC

1.

Jardine,
Paul V.

B.

Harry

Barnes,

gen¬

in William R. Staats
Co., will become limited part¬

NATIONAL BANK

1.

Jan.

on

OF

Fowler Rosenau to Admit

with

Avenue.

quire

JACKSONVILLE, FLORIDA

will

31

*

admitted

be

Phone ELgin 6-5611

Street,

to

Maurice

erts

L.

Snider

have

partner¬

DISTRIBUTORS

UNDERWRITERS

—

DEALERS

Form Columbia Sees.

be¬

(Special to The Financial

Chronicle)

OUR TWENTY-FIFTH YEAR

HILLS, Calif. —Co¬

BEVERLY

Inc. of
California has been formed with
offices at 225 South Beverly Drive

Dealers

in

to engage

are

a

"7

Southern & General Market

securities business.

William B. Feinberg,

Snyder,

Zeke

Vice-

Municipal Securities

President; and Mac Sterling, Sec¬
retary-Treasurer. Mr. Sterling was

with

formerly
&

Daniel D. Weston

Specializing in Florida Issues

Co.

To Form S. Hirsch Co.
Southern Textile Securities

Properties

Effective

Jan.

1

UNLISTED

Samuel Hirsch

ALL

Co., members of the New York
Exchange, will be formed
with
offices
at 350 Fifth
Ave¬

&

Stock
1892

A. M. LAW & COMPANY
SPARTANBURG,

Corporation

lumbia Securities Company

SECURITIES

Member Midwest Stock

Teletype JK 182

Member Federal Deposit Insurance

Exchange.

President;

Established

Ion7

of the New York Stock

members

Shelley, Rob¬
Co., First National Build¬

ing.

.

&

affiliated with

&

.

Rosenau, 15
New York
City,

Fowler

in

_

Organized J 903

ac¬

membership in the New
Exchange and on Dec.

a

Broad

(Special to The Financial Chronicle)

will

York Stock

ship

Shelley, Roberts

Rosenau

N.

William

Emory Reece, 3750 North Nevada

and

JACKSONVILLE

"

SPRINGS, Colo.—

Gustave J. Michaelis is

and

eral partners
&

Joins Emory Reece
CSpecial to The Financial Chronicle)

COLORADO

limited partner

Brown

Jan.

Brooks

date John

Municipal Bonds

F.

general
partners
in
Paine, Webber, Jackson & Curtis,
will become limited partners ef¬

Stock

same

a

Co.

&

Wegner,

New York

retire

Son

Jan.. 1.
H.

Frank

E.

CORPORATE AND MUNICIPAL

Exchange

S.

will
of

be

Samuel

the

Partners
member
and
Harold

City.

Hirsch,

Exchange,

Lewis, general partners, and Sam¬

C.
Bell

York

New

nue,

uel




to
&

from

from

Officers

Telephone 2-2334

Street, members of the New
Stock
Exchange, will be

com¬

on

syndicate

by

1.

Jan.

on

John

will

Distributors

and

Jenks,

Chest¬

a

unanimous.

An

of

1421

name

Grubbs,

York

between

Beach.

was

of

firm

&

'

DENVER, Colo.—John D. Marks

&

construction

partnership in Franklin, Meyer &

ners

come

Ripley

and

of

court's

New York Stock Exchange

City,

On the

Monahan

Mead,

Federal Legislation: Franklin T.

Harriman

cost

Miami

York

firm.

Mead, Miller & Co., Baltimore.

McClintock,

the

Relations:

Filor, Billiard Partners

With
Carroll

nut

changed

the

1,700

Weekly Firm Changes

Center

the

1

Kirkland

Grubbs

to

Eugene Newbold, general partner,

ited, Montreal.
W.

$70,000,000 bond issue

a

Inter-American

Jenks,

PHILADELPHIA, Pa.—Effective
Court

proceeds of which will be applied

monly

1956

mar¬

Authority of the State of Florida,

trade

Gilbert H.

bitt, Thomson and Company Lim¬

Education:

the

Leonard J. Paidar of Goodbody
& Co. was elected Chairman of

Syndicate: E. Jansen Hunt,
White, Weld & Co., New York.

Barney

Conference: T. Jerrold
Bryce,
Clark, Dodge & Co., New York.

of

Supreme

Be

to

retire from limited

William

Barclay
'

are

validated

Hutton & Co.,
Philipp of Paine,

Charles L. Morse, Jr.,
Hemphill,
Noyes & Co., New York.

A.
year

F.

Dec.

Exchange

members

The National Committee Chair¬
the

E.

Florida

Jackson & Curtis.

Bernard

Chicago.

39

COMMITTEE

CHAIRMEN

for

of

in

changes:

State Legislation:

On Jan.

Anthony E. Tomasic, Thomas &
Company, Pittsburgh.

men

Kent

will also become

Pennsylvania

NATIONAL

Capek of Lee Higginson Cor¬
poration; Francis C. Farwell of
Farwell, Chapman & Co.; George

sometime

Kirkland, Grubbs & Keir
Jan.

The

A.

and Guenther M.

Firm Name

Lehman Brothers Group to
ket bonds in January.

Charles

were

bonds

January.

Bond Issue Validated

members of the

new

as

the

ket

$70 Million "Interama"

Weeks.

The New York Stock Exchange

Fulton,
Fulton, Reid & Co., Cleveland.

Wallace
Payne,
First
of
Corporation, San Antonio.

Western

&

has announced the following firm

York.

Stock

Lewis B. Franklin

of

B.

Texas
Texas

Podesta

Co.,

Samuel

Stanley

Roy C. Osgood

A.

elected

was

Elected

New York.

Osgood, Blunt Ellis

Alexander Yearley, IV, Robinson-Humphrey Company, Inc.
(The), Atlanta.

ers

Natural

&

&

Small Business: W. Yost

Branch,
Company, Richmond.

&

White

Vice-Chairman,
succeeding Gerald V. Hollins, Jr.,
of Harris, Upham & Co., and John
W. Allyn of A. C. Allyn & Co.,
was elected
Treasurer, succeeding
Harry W. Puccetti of Hornblower

P.

Schmidt, Poole, Roberts & Parke,
Philadelphia.

New

Southeastern
D.

S.

Durst,

Public Utility Securities: Harold

J. Harold

Roderick

&

Nominating: Walter A. Schmidt,

Northwest

Phillips, Pacific North¬
Company, Seattle.

livan &

G.

Cruttenden

&

William

Fair-

Robert
John

Board of Governors

Industry:

Southwest

Josef C.
west

William

Bosworth

Hughes, Wagenseller
Inc., Los Angeles.

Oil

Company, Inc., Cincinnati.
Pacific

Adams, Braun,
Company, Detroit.

Ohio

Fred W. Hudson, Ball,.Burge &
Kraus,. Cleveland.

Securities:

Municipal

Nuclear

,•
E. Jansen Hunt, White, Weld &
Co., New York.

Eaton Taylor,
Co., San Francisco.

M.

York

Corpora¬

Parker

of

Harris &
Co., Inc.

Co.,

A.

Fred

man,

Inc.,

Investment Companies: William

Dean Witter &

Northern

Co.,

&

com-

Fairman,

Jr.,

D.

Industrial Securities: Edward

Blyth

the

White

succeeds

cago.

L.

New

William

Chairmen's:

the

W.

New York.

Quist, Harold E. Wood
& Company, St. Paul.

of

Mr.

Pattberg, Jr., The First Boston
Corporation, New York.

Glassmeyer,

Minnesota

&

i 1

J.

Group

was

ing year.

m

Kerr, Bacon, Whipple & Co., Chi¬

Co., Detroit.
Leo

Governmental Securities: E

&

Michigan
Raymond J. Laude, Goodbody &

,

Co.,

Association

Craft, American Secu¬

-

David J. Harris, Fairman, Har¬
ris & Company, Inc., Chicago.

1915-17

elected Chair-

Chicago.

man

H.

1920 -21

Reynolds

Foreign Investment Committee:
Robert

PRESIDENTS

resi¬

&

Ostrander, Wil¬

PAST

partner

of

Finance: Lee H.

K.

dent

Co.,

&

New York.

Canadian
•

Hammill

Shearson,

nard,

White,

Walter May-

Federal Taxation:

California
H.

IBA

Exch, Firms Elect
CHICAGO, 111.—At the annual
meeting of the members of the
Chicago Association of Stock' Ex¬
change Firms held today, John G.

44th Annual Convention
.

133

Chicago Ass'n of

IBA oi America Holds

•

(2657)

Teletype ZP 67

Lewis,

Hirsch
floor

is

limited

active

broker.

as

partner.
Mr.
an individual

Barnett Nat. Bank

Bldg.

Jacksonville 1, Florida
L. D. 47;
Bell

ELgin 3-8621

Teletype JK 181

CORPORATE ISSUES

LOCAL SECURITIES

■

134

The Commercial and Financial Chronicle

(2658)

statement

a

Continued from page

4

of

one

that

which

for

There

is

there

are

many

substitute.

no

good coal com¬

panies, but I would think the in¬
vestment
favorite
is
probably

Consolidation Co., be¬
cause
its interests are diversified
and it seems to be commanded
Pittsburgh

imagina¬

by management of great

tion.
investment

For

think

can

we

find

I

purposes,

better

even

an

of utilizing coal, and that is
growth electric utilities.
The
remarkable growth of this indus¬
try has in many cases been re¬
flected
in ' earnings
and
stock

way

in

prices of
companies

many

that this is

size

sufficient
his

investing
in

erate

age

that

field of

a

one

pick

can

rather
carefully.
can be achieved

spots

double-plav

which

electric utility
the country.

around

We believe

sections

the

of

showing

are

which

utilities

in

op¬

country

above

Companies

growth.

A
by

such

as

Lighting, Arizona Public Service,
and

Virginia

Electric

exam¬

are

well-managed companies
which should grow not only be¬
cause
of
the industry-wide
in¬
ples

of

~in

electric

consumption,
they operate in sec¬
tions of the country where popu¬
lation and industry growth
are
considerably above average.
creases

but because

Natural

Gas

produces

been
thoroughly
plowed.
There
are
not many
bargains
around,
although
the
values are good and the investor
is unquestionably buying into a
growth industry. American Nat¬
ural Gas, Colorado Interstate, ard
Panhandle Eastern Pipeline rep¬
has

course,

resent three

of natural gas.
his money

Here

one

can

put

to work either with

producing company or

a

a

pipeline

One historical

are

no

war

division

Middle

the

America

of

East
size

a

in

that

wartime

est

the

duced

oil

seven

million

world.

throughout

the

field

I

dimensions

revenue.

the

tion

of the

that

one

of

fission

used

be

along,

comes

This

thorium.

will

as

is

the

this

but

is

observation marked

course,

one

into

day

Cornbus.tion Engi¬

And

addition

in

the

to

four

companies that I have just men**

Purchases

get

can

other

ing and development center on a
530-acre site in nearby Connec¬
ticut.)

fea¬

today by so much uncer¬
tainty that I would not think it a
satisfactory investment medium. ,•
Attractive

its
are

lish

tured

Four

clearer, these

neering announced plans to estabr
a $5 million nuclear engineer¬

fusion

against the present

method,

the

that

so

reward

metal

a

when

are

when

and

down"

companies, as I see it, tnat will
their'shareholders.
Only

ques¬

going to by-pass the

am

projects,

"shakes

honed, you should keep in mind
the

the

,

enterprise

giant

great

such

figure, and

/yyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy,

IBA

by

year

CHAIRMEN

GROUP

PACIFIC

NORTHWEST

ROCKY MOUNTAIN

specific securities are

as

find

can

panies

Gulf,

Texas,

oil

com¬

investment,

profitable

giants—that is,

Oil

Standard

the

fine

countless

for

addition to the

in

pro¬

Companies,

so

forth—there

and

a, number
of smaller com¬
panies which have particular ap¬
peal. I am thinking of companies,
are

of

such

Western

(Only the other day I

atomic

concerned, the thoughtful investor

And this produc¬
tion is matched by an increasing
demand

operate many of the government s

Securities

'

As far

really

barrels

ity projects I mentioned earlier.
They have the know-how; they

free and clear for hoped-

for decades of future

the com¬
built or are

are

building the reactors for cur sub¬
marines and for the electric, util¬

since it has been climb¬

.

day.

every

largest. These
panies
thathave

from

revenue

Engineering, to name four of

the

up

Specific Attractive

Other

Latin

States

set

are

CALIFORNIA

gigantic. In Sep¬
free world nations

United

basis that the

sources

even

statement that so

are

the

enterprises

ing still higher.

the
imagination.
We
should keep in mind, incidentally,
that the dimensions of the petro¬
field

tion

production
for
the
next
years
will pay off their
debt, provide their stockholders
with a good return, and at the
same time have the ownership of
their properties and mineral re¬

for

year ever

staggers

leum

Babcock

seven

by caution and inaccu¬
racy, for within two years the use
of
petroleum
products
of
the
United States exceeded the high¬

companies

and

gov¬

their

When the

1945,

a

was an

that have access to mineral wealth
in

the

companies

equally

producers as well. And finally I
would
mention, of course, the

international

by

agreed-upon satis¬

an

by purchas¬
such as
Electric,
YVestinghouse,
& Wilcox, and Combus¬

General

Apart from uranium mining, of

This

integrated companies that have
these refining facilities and are

great

a

level.

the

of course,

on

petroleum products
that five years would elapse be¬
fore the peacetime level of de¬
mand got back to the wartime

refining. 41
are,

out with

demand

of

there

these

great had been the war-generated

activity. There are
companies that are
known
primarily
as
producers.
They search for oil, bring it up
out of the ground, and sell it to
Next

in

over

vvas

came

countless fine

others for

of

largest oil companies in America

greal

in the larger side of
the petroleum field, namely, the
companies that are primarily in
the oil business. Here too there is
a

purchased

field

energy

ing shares in

price,
an
arrangement
that is to run through 196a. Most

note may be ap¬

propriate at this time.

problems

outside

More inviting as an investment
field, of course, is the whole orbit

there

Similarly,

atomic

*

good commitments in
of this industry. .

'

States

putput of these

factory

it.is today.

frantic than

more

oil

for

search

the

and

United

the

in

ernment at

days

figures are going to be astronomi¬
cal

is

mines

Europe

Western

both

and in Canada the

oil

would absorb
the entire Middle East production
with
nothing left over for our
hemisphere.) The use of oil, in¬
cidentally, in Western Europe is
increasing at the rate of 12 to 15%
a
year.
Our own use goes up
about 7% each year, so that as
this is compounded you may real¬
ize that not many years hence the

various phases

tember,

Securities

of

that,

field

investment

an

aver¬

Florida Power and Light, Houston

that both
and transports. This is

company, or a company

in

these

that

President of
companies

the

by

largest

demand
of

one

Investing in Energy

the

Thursday, December 15,1955

...

Frichard,

Anderson

as

Skelly, Tidewater, and Union Oil.
and Gas of

saw

Louisiana,

four good

as

examples of smaller companies in
various
phases of the industry;
and

must

one

the

overlook

not

Warren H. Crowell

possibilities
of
Royal
Dutch, which is close to Standard
.Oil of New Jersey.in size and is a
prime beneficiary from the in¬
creased consumption of petroleum
dynamic

FIRM

BIDS AND OFFERINGS

Mississippi —Tennessee

in Europe.

Crowell,

J. Harold Myers

&

Bosworth,

Co., Los Angeles

Sullivan

Company,

Josef c.
&

Phillips

Pacific Northwest

jj >

Company, Seattle ' ?

Inc.,

Denver

.

Finally, how does one invest in
atomic, energy? This is a question

and Arkansas

for which there is

Municipals
•

I

no

sometimes, think

easy answer.

that in

C. T. Williams & Co.

trying

to

figure out profitable atomic en¬
ergy
investments
we
are
up
against the same problem that in¬

United States Government

vestors

Securities

face

40

45

or

when the automobile

into

come

general

bought into

Union Planters National Bank
Memphis 1, Tennessee
LONG DISTANCE 218

BELL TELETYPE—ME

SYSTEM —THE

BANK

INCORPORATED

INVESTMENT BANKERS

ago,

years

promised to

use.

United States Government and

The investors of those days may
have been lucky enough to have

Bond Department

WIRE

Weedon

99

in

that was

a company

the General Motors family, or

he

Municipal Bonds

Railroad, Public Utility and Industrial Issues

FIDELITY BUILDING

have invested in Maxwell-Briscoe, which became the
great Chrysler enterprise.'
But
more
likely he put his money

BALTIMORE

;

may

Telephone:
Private

PLaza 2-2484

Telephones

Branch

into

Pierce-Arrow, Locomobile,
Northern, Carter Car,
Stutz, and a long-long list that

Office
Bell

to

—

—

Bell. Teletype:

1, MD.

BA 499

Neu> York and Philadelphia

Grymes

Bldg.,

Teletype—ESTN

Easton,

MD

Md.

264

Noiseless

WIRE

today

in

investment

an

sense

make up graveyard items.

Now, having stressed the diffi¬
culty of the problem, let me say
Underwriters

SPEC'A'.IZtNG

■

M

Firm

IN

how

I

Bids

would

Solving

*

m

the

go

about solving it.

Investment

Problem

XMfMtMII
*

ark

ACTIVE TRADINC MARKETS

In the first

f

Distributors

Firm

Offerings

to

place, I would turn
uranium
field, the fuel

the

necessary

to

run

create
.

Dealers

'

United

.-t

Quotations

nuclear
States

our

reactors

power.

there

are

I

RETAIL OUTLETS
★

In
the
literally

thousands of small uranium

ing enterprises.

WITH

to
Insurance

min¬

Public (Utilities—Industrials

think I would

United

States

Government

Securities

•

General

Market Municipals

★

finest

uranium
mine,
i
think, in the United States, is the

property

of

Anaconda

and

companies such

and

Members

Copper;

WIRE

Vanadium

&
St.

Corporation have good
uranium mining properties.
In

M to? Mmm.

Canada, where uranium'
are far greater, there

sources

four

investment

re-

opportunities

mentioning, and I think
surely worth considering: Algom,
Consolidated Denison, Gunnar and

MEMPHIS

MEMPHIS 1, TENNESSEE
TELEPHONES 8-5193

•

WIRE




LD-311

•

SYSTEM

LD-312
—

THE

TELETYPES ME-283

Pronto.
•

ME-284

These

are

all

large dimensions and

projects of
as

far

know
BANK

WIRE

amply financed and in
sponsible hands.

Incidentally,

you

should

as

i

re¬

know

Midwest

Stock

SYSTEMS

W.

Landstreet, III

-

V

Edward L.

Exchange

Kirkpatrick, Jr.
—

William Nelson, II

Goldman, Sachs

Co., N. Y.; Scherch, Richter
Louis, Mo.
I

Co.,

j

are

worth

OF

8.

*

*

Atlas

as

<

Municipal Bonds

avoid them!
The

and Bank Stocks

!

tlark, Landstreet

Kirkpatrick, Inc.
ITH

AVE,,

teletype nv 353

N.

★

NASHVILLE

3,

TENN.

telephone al 4-3311

-Volume 182

Union

as

Number 5480

;

.

.

Carbide, which has

The Commercial and Financial Chronicle

city the size leum production is close to three
are
bursting •times what it was in 1930. Natu¬
at the seams. We need new roads, ral gas production is four and a
new
schools, new housing, new half times as great as in 1930.
air terminals, new bridges, new And electric power is more than
tunnels, new facilities of every five times as great as in that year.
sort for living and for recreation.
These figures show that the rate

re¬

cans

of

cently ioimed within its corporate

family a separate nuclear energy
development. Too, one should not
overlook

tion,

American

North

which

has

Avia¬

acquired

to

great

competence in the nuclear energy

field;

populate

New

York.

skillful

lier

promise in nuclear
the airplane; and,
finally, Newport News Shipbuild¬
ing. The last-named is one ox our
great ship-building enterprises,
and

and

a

labor

been

Never has

for

its

propulsion

if

Merchant

our

Marine

Navy

are

to be replaced,

goes

On,

with

vessels

manship.
Our natural resources
huge. We are gradually learn¬
ing how to control our money

so-called
/
whole ex¬
pansion of American productivity,
American consumption, American
wealth, is energy. We need more

a

.

Metals

Field

and

One final field should be

swings

the

of

,

nuclear-propelled, I would think

The

eliminate the

to

as

so

business cycle.
-And the key to this

are

that Newport News would be
good place for equity funds.
>

credit

vicious

time

as

productive.

more

are

aid

that

and

more

corporate management
greater vision and states¬

shown

of

for

men¬

tioned: the group of companies in
the
copper-mining and copper-

more

our

of the

.

of energy

sources

automobiles, our air con¬

of

growth

does

in

the

IBA GROUP CHAIRMEN
WESTERN

PENNSYLVANIA

NORTHERN OHIO

OHIO VALLEY

Fred WiHudson

Charles F. Conners

field

energy

not

merely keep pace with
industry as a whole.
Energy outstrips the rest, and is
bound to continue to do so. Every

the growth of

day'

we

learning

are

new

ways

of putting energy to use, both the
conventional sources and the ex¬

citing

new

such

sources

as

nu¬

clear and

ultimately solar energy.
It is safe to predict that the en¬
ergy
industries will double in
size

during the next decade, and
well double again in the

may

decade

For

following.
this

reason

believe

I

that

television, our re¬ the whole field of
energy gener¬
frigeration, our washing machines, ation and transmission
is a prime;
fabricating field, the metal that for all the appliances large and
place for the thoughtful inves¬
are
primarily makes up our power small which
part
of
our
tor's funds. A diversified invest¬
lines and carries our power from everyday
lives.
And American ment in
oil, in natural gas, in
source to user.
Conceivably, alu¬ industry, expanding to keep up electric
utilities, and in the en¬
minum
will
gain ground as a with this demand, will in the
terprises that will result from
conductor of power, but it is my same
way
need
greater
and tomorrow's
widespread use of nu¬
feeling that copper is solidly en¬ greater energy sources as time
clear power, is an investment in
trenched and no one is going to goes on.
America's very future as a great
take away their business.
The fact is that energy produc¬
nation.
Now, I have given you a quick tion has, over the past quarter
review of mah's various energy of a century, increased at an al¬
discoveries, a brief recital of our most miraculous tempo. We think
sources
of energy today, and a of
automobile
production
and
list of investment suggestions not steel production as tests of where
only for conventional and tradi¬ the nation stands, industrially. In
tional energy sources but also for the
past quarter-century, auto¬
Goldman, Sachs & Co., 30 Pine
the nuclear energy age which lies mobile registration has more than
Street, New York City, members
ahead.
doubled.
Steel production today cf the New Ycrk Stock Exchange,
_:r
I believe this country is on the is very nearly double what it was
announced that Miles J. Cruickeve
of 10 to 20 years of giant 25 years ago. And the 1954 Fed¬
expansion that will far outstrip eral Reserve Board figures on
ditioners,

135

We'

has

Never

a company such as United
Aircraft, which I mentioned ear¬

*

(2659)

our

Anthony E. Tomasic
Thomas

:

&

Ball, Burge &

Company,

Cleveland

Pittsburgh

,

i

Pohl &

Kraus,

Company,

Cincinnati

inc.,

Specialists in -

,

■

LOUISIANA MUNICIPALS

Goldman, Sachs to

Dealers in

Admit Four Partners

Municipal and Corporation Securities

..

the pace of the past.

production are two and a
half times what they were in 1930.

amazing

year we

MARKET STREET

515

(P. O. BOX 47)

total

i. Our population is increasing at
an

Barrow, Leary & Co

rate.
Every third
have enough new Ameri¬

Morris W. Newman

Compare
those

figures
with
field. Fetro-

these

in the energy

Wm. Perry Brown

SHREVEPORT 80, LOUISIANA

John E. Kerrigan

Erwin R. Schweickhardt

:

LOUISIANA, MISSISSIPPI, ALABAMA, GEORGIA,
TENNESSLE, SOUTH CAROLINA, NORTH CAROLINA
and OTHER

Bell Teletype SH 82 & 83

Telephone 3-2573

Underwriters

—

Vincent B. D'Antoni

Distributors

George J. Bourg

Dealers

—

Miles J. Crulckshank

Horton

Verne

E. N. Anagnosti

We especially invite

Louisiana and

SOUTHERN, MUNICIPALS

your

Belle Isle

Mississippi Municipals

Canal

inquiries in:

Corp.

Oil
(Assets)

Bank

Trust

Mississippi Shipping Co.

newman, brown & co.
INC.

New Orleans Public Service Inc.

New Orleans Bank

Stocks

(Preferred
South'

iffmm

and

Common.) * '■

Shoire Oil

Sugars, Inc.
Standard Fruit & Steamship Co.

Southdown

(Preferred and Common)

Investment Bankers

if

•4*

321

Hibernia Bank Buildint
Joiin

NEW ORLEANS

L.

Weinberg

C.

John

SCHWEIUKHARDT & COMPANY
MEMBERS NEW ORLEANS STOCK

Whitehead

12, LA; 3

'■■■■

■

-

-

Long Distance 345 & 389

v."

'

"il|

Teletypes

shank, Verne Horton, John L.
Weinberg and John C. Whitehead
will become partners of the firm
on Jan. 1, 1956. All four men have
been
associated
with Goldman,

\';

NOj 189

& NO 190

EXCHANGE

809 HIBERNIA BUILDING

'

NEW ORLEANS 12,

LA.

Tulane 6461 & Tulane 8812

Teletype NO 344

Sachs & Co. for some years.
Mr.

'

FIRM
j*

r. .T

*

Tidelands

^American

fcanal Assets, Inc.

:

I Canal

UNDERWRITERS

—

,

Classc ock-Tidetands
,Kerr-McGee Oil Industries
Ray

,

McDerinott

Mississippi

LOUISIANA

MUNICIPALS

/.
;

"•

CORPORATE SECURITIES
e

toew

Shipping Co.

Orleans Public Service

Republic

Natural

Southdown

Gas

Sugars, Inc.

Southshore Oil and
Development

■

NEW ORLEANS BANK

and

was

with
a

the

He

University

is

rejoining
after a
became

firm

in

and

Harvard

Horton

Mr.

has been in the firm's

been

in

the

department.

School

L"' 222 CARONDELET ST.

'




BANK STOCKS AND

of

Business

LOCAL CORPORATE ISSUES

new

Mr. White¬

Administra¬

tion, has been with the firm since
1947 in its buying department.

Scluirff 4 Jones
ncorporated

TELETYPE

With A. M. Kidder Co.
MIAMI, Fla.—Thomas L. Smith
is with A. M. Kidder & Co., 139
East

Flagler Street.

NO

180

&

181

L.

CARONDELET ST.

219
—

(Special to The Financial Chronicle)

NEW ORLEANS

LOUISIANA AND MISSISSIPPI

buying de¬

firm's

Market*

in

partment since 1945. Mr. Wein¬
berg is a graduate of Princeton
University, and Harvard Graduate
School of Business Administration
has

JOHN J. ZOLLINQJEjt, JR.

Active Trading

grad¬
uated
from
Cornell
University
and the Harvard Graduate School
of
Business
Administration and
ministration.

head, a graduate of Haverford
College and Harvard Graduate

AMD COMPANY

JAMES E.JKPDDY *

School of Business Ad^

Graduate

and

Howard, Weil, Labouisse, Friedrichs

IKED. SCHARFF

1928

partner from 1942 to
a
graduate of Stan¬

1950.
ford

business

STOCKS

Co.
first

&

absence,

five-year
associated

/.j.Higgins, Inc.

DISTRIBUTORS

Sachs

Goldman,

Trust

Central Louisiana Electric

DEALERS

Cruickshank,

MARKETS

'

(Ground Floor)

NfeW ORLEANS 12, LA.
SHREVEPORT, LA.

D.

235

Tulane 0161

-

|

JACKSON, MISS.

Chronicle

The Commercial and Financial
136

price of hogs has been the lowest
in 14 years—around the $12 level.

12

Continued from page

expansion in hog numbers
U. S. began with spring

The

in

Agriculture' Beset With

as

We

in
high

shorter crop there, prices

a

the western corn belt are as

Some

Plenty

seasonal increase in corn

costs. Farmers may look more
closely
at the
spread between

age

a

year

commercial wheat

states.

producers increased
substantially in 1955, but
weather held yield per acre below
Soybean

with

soybeans

were

produced than in 1954 and price
been fluctuating around the
rate of slightly over $2.00

loan

S

The larger crop, plus
carry-over of old beans for

bushel.

some

in

increase

cents

acres

in

of

cotton

allotments for 1956. Price
depend upon support levels

which

per

reduced

be

could

provisions

bushel will prob¬
average
at least 30 to 40
under a year ago. Over the

ably

reduction

further-

a

million

1

an¬

acreage

will

peanut yields suggests only a mod¬
est seasonal rise in soybean prices.
Thus price

re¬

of Agriculture

a ry

nounced

and

cotton

t

e c r e

about

the first time coupled with a lateseason

14%

a

1955 as com¬

duction in acreage in

has

per

Despite

cotton.

the same

pared to 1954, yield per acre went
up almost one-fourth, from 341 to
431
pounds per acre, giving us
more
than a two-year supply of
cotton on hand.
On Oct. 14 the

Nevertheless, al¬

of

under

legislation.

present

Marketings High

Livestock

As
ant

previously indicated, abund¬
feed supplies are now bring¬

crops

ing

near

ing

animals to market.

remain

soybeans

however,

ahead,

years

of

one

promising

our

with a potentially expand¬
market both at home and

will

abroad.

record numbers of meat

consume

of meat per
Two-Year

Wheat,

as

another of

S. citizens

U.

around

161

capita this

pounds

47
year high.
Supplies will be just
as plentiful in 1956.
In recent days the top market

of Wheat

Supply

already mentioned, is
problems of plenty.

our

marketings, modest seasonal

hog

year,

a

price

Municipal • Corporate

•

Underwriters

—

Brokers

—

however, are down.

feeders

replacement
animals
at
prices
slightly below levels of a
year ago.
With these very nar¬
row, price margins, profits in 1956
cattle fattening will have to come

Av¬

cheap

know that there is

We
ite

Revel Miller &

French &

prices

Wires

improve,

to

Gregory & Sons, New York
Walter C. Gorey Co., San Francisco

Beil

&

Inc.,

bit

more

have

prices

Milk

fa¬

than a

strengthened a bit in recent
months and substantial portions of
burdensome

dairy

surplus

For

farmers

IBA

ings and liquidate breeding stock,
thus increasing tonnage marketed
This

in the short-run.
the

hog situation

means

GROUP

CHAIRMEN
MINNESOTA

CENTRAL STATES

MICHIGAN

David J. Harris

Raymond J. Laude

that

get worse
sometime before it gets materially
tion

of

bers.

may

As yet there is no indica¬

better.

liquidation

hog

in

num¬

Spring farrowings for 1956

thus far indicated at near rec¬

are

ord levels of

If

year ago.

a

an

ef¬

ficient

hog farmer sees corn at
$1 per bushel and hogs at $14 per
cwt., he is unlikely to reduce pro¬
duction.
He can operate his hog
enterprise in the black with such
a
hog-corn ratio. And where he
can
do so, he is selling his corn
to Commodity Credit at loan rate
of

$1.50

around

buying

better,

or

other

or

corn

feed

free

grains

at

Fairman,

$1 and using this to pro¬

&

Goodbody &

Inc.,

Leo L. Quist
Harold

Co.,

Co.,

Detroit

E.

St.

Wood

Paul

Chicago

hogs he hopes to sell at $14
more.
This
alternative,
of

or

Harris

Company,

duce

is not open to many farm¬

course,

Therefore,

we
n^ay expect
present unfavorable hog-corn

ers.

of

some

liqui¬

§

hogs in the summer or

fall of 1956.

prices

hog

di¬

not

are

rectly supported, the government

Mead, Miller & Co.

is

buying $85 million of pork and
products
to
support hog
prices. Since this will provide a
home for only slightly more than
a
week's hog marketings, its ag¬

buying

program

for

—Members—
New York Stock

Philadelphia-Baltimore Stock Exchange

breeding

than

may

other¬

have been the

would

Exchange

Exchange (Associate)

to schedule

some

production

American Stock

announced

was

spring farrowing, it

heavier

case.

therefore, incomes of
hog producers will be down sub¬
stantially in 1956.
Some of our
total,

Louis C. McCIure & Co., Tampa, Fla.

Birmingham

and

Tuscaloosa, Ala.

Hough, St. Petersburg and Leesburg, Fla.

Clisby & Company, Macon, Georgia

intensive producers of
hogs. Our records show
that a 25% reduction in hog prices
on
such an intensive unit, with

BALTIMORE

and

1, MD.

T elephones

Bell

change in costs other than
home - produced feed, can
drop
net income by $3,000 to $5,000 on
180 to 240

acre

Teletype—BA 270

unit.

Little Change

1900

New York—WHitehall 34000

Baltimore—LExington 9-0210

no

a

ESTABLISHED

Charles and Chase Sts.
$

belt farms have become spe¬

corn

corn

Co., New York

Herzberg,

a

the dairyman

for

ago.

year

cialized,

to

Co., Los Angeles

Odess, Martin &

vorable

our

will have to cut back on farrow-

In

American Stock Exchange (Assoc.)

Crawford, Inc., Atlanta, Ga.

situation is

defin¬

a

cycle in hog production.

wise

Philadelphia-Baltimore Stock Exchange

F. S. Moseley &

gains in the

Prospects Up

Dairy, Poultry
The

1899

Members

Direct

below

margins, de¬

figure.

have influenced

New York Stock Exchange

purchased

only

largely from

sows

Established

have

feed lot.

at the time farmers were

John C. Legg & Company

bit

a

Narrow

tions.

Cattle

gregate effect on hog prices is ex¬
pected to be small. As the pork

Dealers

average

spite cheap feed means slim prof¬
its for 1956 cattle feeding opera¬

pork

Securities

to

levels.

1955

cattle feeders,

price in the year ahead will
fully $1 to $2 below the 1955

While

Government

pected

compared to $5 to $7

be

dation

INSURANCE STOCKS

will get seasonal swings in the
prices of fat cattle, prices are ex¬

suffered

erage

ratio to be reflected in

NEW YORK

as

competition with

in

Lower grades of cattle
only modest price
reductions.
Over-all earnings of

for hogs

received

farmers

will be between $15 and $16.

$27

These cattle will

fed in 1955.

larger tonnages of pork. While we

less today.

have

prospect in the short-run, how¬
ever.
For the year 1955, average

the

BALTIMORE

most

as many

be marketed

choice, reflecting abundant feed.
January the top price for
choice steers in Chicago was al¬

in

hog

The situation is much

over

were

we
will feed
cattle in 1956 as

that

appears

roughly

Last

price increases may come shortly.
No real strength in hog prices is

bushel, national av¬

the

in

erage

acreage

more

billion bushels is

than $1.81 per

Soybean Market Expanding

10%

a

over

for the 1956 crop

^

expected levels.

than
The carry¬

bushel, down 14 cents from
earlier. The support rate
will not be less

per

support and open market prices
when they plant their corn next

spring.

supply.

largely owned by the Commodity
Credit Corporation. Wheat prices
are
therefore
governed by the
loan rate and are not likely to ex¬
ceed
it.
Average national loan
rate on wheat for 1955 was $2.08

price is expected during the com¬
ing months—with a total rise of
up to 20 cents in prospect. This is
only about enough to cover stor¬

most

of

over

$1.35.

We produced

100 million
this year. Since July of this year
receipts of hogs at 12 major mar¬
kets are up 14% over a year ago.
Now at the
season
of peak in

producing

are

It

compared to a year ago. An un¬
usually high proportion of the
cattle coming to market in recent
months has been high
good to

million head in that year and

92

have on hand more

now

two-year

a

the

farrowing in 1954.

The Problems of
of

Thursday, December 15,1955

...

(2660)

in Cattle

Numbers

Cattle numbers in the U. S. are
at

or

record levels.

near

(\\)e invite

We have

IJour Jlnquiriei

increasing the nation's beet
herd since 1949.
The largest in¬
been

baker, watts & co

absolute

in

crease

numbers

not been in the range
Members
Members

ever.
New

York

Stock

Exchange

have

states, how¬

They have been in the north

central states.

BALTIMORE

Associate

Members

American

Stock

Exchange

Ranchers

and cattle men keep¬

SECU

ing beef breeding herds have sold
their feeders this fall at prices
U.

S.

Government

Public

Active

and

Unlisted

Trading

Markets

Revenue

Stocks

in

Bonds

and

Local

Bonds
Securities

slightly

Western range
ter

Authority

and

below a year ago.
conditions are bet¬
than in recent years.
Thus

only

Bonds

State, County and Municipal Bonds
Listed

RYLAND

a

Philadelphia-Baltimore Stock Exchange

commercial
beef
greatly different

earnings

of

breeders

are

than

in

Stein Bro s &B oyce

not

in

1955

get

some

numbers

CALVERT & REDWOOD STREETS

look

BALTIMORE 3, MD.

able

to

tion

of

Unless

we

liquidation in
cattle
in
1956, ranchers can

forward

to

1955

weather.

1954.

No

beef

—

a

.

A Baltimore Institution since 1853

year

compar¬

barring

6 South Calvert Street,

Teletype: BA 393

unusual

susbtantial
cattle

liquida¬

numbers

Clarksburg, W. Va.

appears

probable

in

the

CUMBERLAND

NEW YORK

LOUISVILLE

now

PADUCAH

Representative:

Baltimore 2, Maryland

Telephone: SAratoga 7-8400

EASTON

coming

12 months.
Telephones: New York—CAnal 0-7162




Bell

Baltimore—MUlberry 5-2600

System Teletype—BA

396

Beef

feeders

are
faring less
federally inspected
slaughter of cattle in 12 markets

well.

Total

since July 1, 1955

is

up

about 3%

MEMBERS OF

NEW YORK STOCK

and other

EXCHANGE

leading exchanges

.Volume

(

182

Number 5490

have been
disposed
farmer who

.

The Commercial and Financial Chronicle

For

of.

buys

.

.

the

the

of

his

farmers.

much

dairy ration, earnings should be
higher in 1956 primarily because

of

lower costs.

Despite

cent reduction in

dairy

some

re¬

cow num¬

bers, total milk production
to higher
output per

is

due

Farm

prices

therefore

up

cow.

of

dairy products,
likely to continue

are

near

support levels
ahead. Present

in

the

year

price supports are
to remain in
effect at 80% of par¬
ity until April, 1956. Then
sup¬
ports will be set between
75%
and 90% of
parity.
While the
dairy situation is im¬
proved, dairy supplies will
prob,
ably not be brought
fully in balI ance with demand at prevailing
I prices.
Dairying, like other seg¬
ments

ing

a

of

agriculture, is undergo¬
technological revolution on

the farm. Considerable slack re{ mains in the industry's ability to
; produce.
Supplies are likely to
remain
burdensome.
;

Returns from
poultry egg

pro¬

duction improved this fall.
Farm¬
ers
got extra mileage from
hens held

able

old
in view of favor¬

over

relationships of

teed.

Though

egg prices to

egg prices will

drop
seasonally this spring, net returns
will be
higher than a year earlier.
The

nation's

laying

Probably be built

flock

will

up again by

incomes

We

a

sense

tially

farms

and
In

market.

tives

to

pleasant

a

picture for agriculture.
We
recognize, however, that our

must

esti¬

mates

to total income deal
with
the income:
(1) of all farm opera¬

tors

in

aggregate

farming

and

activities

the total

sess

from

To

as¬

health of the agri¬

cultural

economy
what is

amine

(2)

only.

must

we

in

of

The

-Farm population has
decreased
over 20% since 1948..
Number
of farms has
declined about 2J/2%
per year since 1950.
In
addition,
farm
people are now

by

receiving

five to six billions
annually from
non-farm sources.
Roughly 30%
of the income of the farm
popu¬
lation comes from sources other
than the farm itself.
When this
is taken into

account,

per capita
people from all

sources

the

down

are

1948

peak

smaller

drop
income

capita
farm

income

exerted

and

by

urban

about 6%

of

in

in

due

cial

This

the

pull

off-farm

is

not

to

an

well

average

transfer out

is held

past dec¬
The

per

by the

up

of

both

painful

and

As

the

80%

last

financial

This does not
of

cases

difficulty

Several

it will

or

farmers

re¬

have
as

far

reflected

cial

indexes

the
of

prices stand at

Offi¬

squeeze.

farm

real

record

near

weakening

is

estate

highs.

expected

next few months.
who

owner

elects

The

to

prices.

High quality land is to be
higher priced 10 years from now
than it is today.
The
technological outlook for
individual

terrific

farmer

presents

a

opportunity
and
chal¬
Even with declining in¬

face

with

TEXAS

farmers

agriculture,
challenges:

real

(1) To

help

assimilate
proven

farmers

too

evaluate,

and

successfully adopt
technologies rapidly.

new

(2) To

stimulate

research

that

unborn,

you

and

support

ideas

truths

the

the

as

yet

as

yet

un-j

recognized and the discoveries as
yet unmade may be added to our

stockpile of knowledge.
(3) To recognize the increased

the

George A. Newton
G.

H.

Walker &

Richard

Co.,

J.

Stern

W. Wallace

Stern Brothers &

Louis

St.

Kansas

Co.,
City, Mo.

Payne

First

of 'Texas
Corporation,

brought about
complexity of

growing

San Antonio

farming.
(4)

To keep

an eye out for sit¬
technological gains
in production are being perma¬
nently capitalized into land values.
(5) To recognize that in the

uations where

K. S. Johnson With

liquidation of
today

farms while
operating
costs
farmer's total assets
many

current

often

equal

a

in three to five years.

(6) To become informed, active
participants, not sideline specta¬
in the public affairs of agri¬

tors

culture.

To realize that

(7)
ture

changes,

institutions which
In

such

desirable

lead

alert

credit

stimulate

should

institutions

must the
it change.

serve

situation,

a

agricul¬

as

also

so

INDIANAPOLIS, Ind.

—

hill, Noyes & Co., members
New
other

York

Hemp¬
of the

Stock

Exchange and
leading exchanges, have an¬

nounced that Kenneth S. Johnson
has joined the firm's
Indianapolis

office, Merchants
as

Bank

his

He

with

the

department.

banking and

has

been

in

the

investment banking

fields since 1920.

For many years

and

investment busi¬

formerly associated

Indianapolis

Bond

municipal bond department.

Forms Intercontinental Sees.
DALLAS, Tex.—Harold
ver

is

engaging

Meadows
of

name

from

in

offices

in

Intercontinental

ties Co.

Eighty Three Years of

Dillon & Co. heads
underwriting syndicate that is
offering
to
the public
580,000
Eastman,

Investment Service

the

price

than

Much

of

this

with

this

used

was

to

cope

less favorable cost-price re¬

lationships.

Purchases

of

new

machinery in 1956, however, are
likely to be down from 1955 levels.
The potentials as yet unrealized

in

the

and

new

are

widespread

adoption

of

developing

technology
applications
Such
develop¬

greater than the

thus

far

made.

assure

abundant

American

supplies

Little

mestically for
lation

to

of

chance
our

outrun

consumers

food

and

exists

do¬

growing

the

food

popu¬

supply.

solution to
of

the agricultural prob¬

plenty.

Output expansion

of

$7

(par 10 cents) at

J. J. B. HILLIARD & SON
ESTABLISHED

Net

proceeds from the sale of
capital stock will be used to

off indebtedness in the form
and other short

pay

of mortgage notes

Exchange

Tax-Exempt Bonds—Investment

company's
ment

also

drilling

be

used

to

Guthrie

develop¬
portion may

and

A

program.

acquire

and

Grade Common Stocks

419 W. JEFFERSON ST., LOUISVILLE
2, KY.

notes, to complete purchase
properties and to advance the

of

1872

Member Neiv York and Midwest Stock
Exchanges
Associate Member American Stock

term

Building

Paducah, Ky.
Owensboro, Ky.

Masonic Temple

de¬

velop additional oil and gas leases
and other mineral interests.

The company acquired from its
predecessors and now holds work¬
ing interests in 23 wells produc¬

ing

oil

gas

or

both

or

in the
Fields,

Woodlawn

Waskom

and

Harrison

County,

and

Tex.,

ex¬

pects to drill 54 additional wells
at
proven
locations during the
next

12 months.

and

tract

fields

in

serves

by Ira Brinkerhoff, oil
consultant,
to
amount
densate

barrels
and

natural

of

con¬

contemplated.
company's oil and gas re¬
are
estimated in a report

3,900,000

75

BANKERS BOND H
INCORPORATED

of

and
to

oil and

billion

Member Midwest Stock Exchange

these

under

are

or

The

™

Further acquisi¬

developments

other

and

Distributors And Underwriters

a

share.

per

cubic

1st FLOOR KENTUCKY HOME LIFE BLDG.

LOUISVILLE 2, KENTUCKY

gas
over

Bell

Teletype LS 186

Long Distance 238

con¬

feet

gas.

Giving effect to the sale of the
capital stock, capitalization of the

°f

company

shares, of

Investment■ Securities Since

1894.

cents

per

Among

consists
of
1,462,160
capital stock, par
10
share.
those

underwriting
Co.;

Hayden,

associated

are:

in

Kentucky Municipal Bonds
Local Securities

the

First California

Stone

&

Co.;

Carl

M.

Loeb, Rhoades & Co.; Paine,
Webber, Jackson & Curtis; and
Piper, Jaffray & Hopwood.
-

Humphrey Company, Inc.

THOMAS

CSpecial to The Financial Chronicle)

RHODES-HAVERTY BUILDING

HECTOR W.

ST.
LOUIS, Mo. — Louis E.
Demper has been added to the

ATLANTA 1, GEORGIA

staff
WALNUT 0316




LONG DISTANCE 421

INVESTMENT

Fusz-Schmelzle Adds

Inc.,

of

Fusz-Schmelzle

Boatmen's

members

Exchange.

of

the

Bank

&

Co.,
Building,

Midwest

Stock

WILLARD

Mrs.

E.

GRAHAM

C.

JAMES M.

DEPARTMENT

Mrs.

BOHNERT

P.

ELINORE

CHARLES

McNAIR

POWHATAN

LEWIS

ROBERT

FETTER

H.

ROBERT
OSCAR

C.

WRIGHT

Sil¬

the

Building under the firm

In Louisville Since 1872

Offers LeCuno Shares

tions

The Robinson

J.

securities

a

ing, not lag them.

Eastman, Dillon Group

and

Vice-Presi¬

as

dent, director and Manager of the

business

Johnson

own

was

Share Corporation

Building,

Manager of its municipal bond
Mr.

had

ness.

farm¬

in

changes

he

Hemphill, Noyes Go.

1930's excessive mortgage indebt¬
and
fixed
costs
forced

edness

tal stock

lem

general rise in

view

the future of

farmers will buy in 1955
more machinery
they
purchased
in
1954.

comes,

upwards of 20%

rather

a

SOUTHWESTERN

capi¬

Rising population in itself, there¬
fore, will not bring an automatic

by

bankers

shares of LeCuno Oil Corp.

lenge.

farming of many
individuals who earned very low
levels
of
living
in agriculture
than

VALLEY
•

sell,

however, can convert his real
estate assets to cash at favorable

the

MISSISSIPPI

Agriculture
As

go.

far, farm land values have

not

Some

se¬

are non¬

young

established

Thus

are

which

stretched their credit about
as

major

a

CHAIRMEN

Challenges to Those Who Finance

by

Janu¬

level

individual

existent.

institutions wil play

due to management

Ahead

of

in 1940.

that

IBA GROUP

need for and proper social reward

basically strong finan¬

above

fiber.

the

down.

are

Some¬

True, the situation is not

cently

ad¬

role.

as

Price

strong today, but equities

as

favorable levels of

They

such

mining.

Longer Look

in

assets.

ments

capita

needed

farmers collectively owned
equity of 89% of their total

suggest that earnings of full-time,
commercial
farmers
are
at
the
ade.

is

resources.

condition.

ary,

per

aggregate

to

favorable

jobs.

The

average

than
is

from

$958.

decreasing

Despite the severity of the costprice squeeze today and in pros¬
pect for the next year, agriculture
still

cial

our economy

generations.

farm

and recognize
that they also have
non-farm in¬

incomes of farm

is

within the

come.

As
ever

slow.
In
the
case
of
people,
changes in occupations frequently
are
made
only
between,
not

is

technological

Technological developments es¬
sentially feed on capital. Thus in
shaping the agriculture in the
future, bankers and other finan¬

rely
alterna¬

industries

gradually shifts

within

from

easily outrun the stock
in the quarter
century ahead.

we

resources, yes,
into pro¬

resources

primary

this

S.

resources

our

the

number of farmers

goes

U.

farm production or
times

arising

80%

earning

activity.
develops,
an

ex¬

happening to

over

fiber which

ductive

share

Essen¬

five

channel

human

even

vere

not

real

our

the

compartive

on

of

produce

of the food
to

Income of Farm Operators
From
is

million

two

million

Farming Is

above

The

fault of theirs.

no

prevailed

The

industry.

cost-price squeeze confronting ef¬
ficient commercial farmers is in

mean

Not the Total Picture

operating the pain¬
of adjustment

process

basic

a

commercial

137

vances can

here

see

fully slow
in

of

(2661)

C.
M.

SEDLEY
KING

CONWAY

JOHNSTON.
E.

PURYEAR

Jr.

Securi¬

138

The Commercial and Financial Chronicle

(2662)

Secretary: Reginald
Davis, Skaags & Co.

S. F. Street Club
SAN

Directors:

Calif. —At

FRANCISCO,

its Annual Christmas Dinner, held

Friday, last, at the Olympic Club,

Lakeside, the Street Club of San

Elworthy

Robert

B.

The Outlook for Bank

Horner,

&

Co.;
Kenneth
C.
Koch, Walston & Co.; J. W. Zim¬
merman,

for

the

Joins

a

Blyth &

Co.,

Kramer,

Inc.

Vice-President: Frank B. Nom-

balais, Schwabacher & Co.

previously

j

j

top of such

to *

o

j

Which

brings

dividends:

with Elmer H. Bright

already on record.
Aug. 29, I made so

& Co.

New

York

10%.

i-d

daily

bank

of the nine

one

banks whose rates I took the lib-

erty of increasing. One, National
City, upped its rate a few days
later

(Sept. 6).

Then,

on Nov. 23, Irving Trust
through with a thumping
big 25% jump in total dividend
from $1.30 to $1.62.^ annually in¬
cluding extra and establishing one

came

of

Corporate: 54 172
101

Municipal: 54 lib

\

/

NORTH ST.

MARY'S ST.

SAN ANTONIO 5, TEXAS

'

the

most

payouts on

generous

hear

more

about

news

Trust in the
Last week

x

.

for

80;

°r bU% t0 a yield of 2.5%. Now,
J am certainly not going on recany Such

think that you

tbin*
would

t° .look over the msur-

a"^ 5Q°i?£ It'Jj* are m^ny
good values there, I am sure. ,,
th*
The

Snmw

r.ifA

incDr9ni.«

Surging Life Insurance
Industry

•c

,

Each year

,,

,

insur-

serrt^

The

fiufl Sit
billion
ihont l^Q hlllinn
about $39 bllllon this
tnfTl

un

facturers Trust Co.
the

...

out with

came

vear

that

news

they will split the
stock 2-for-l and plan to place
the new shares on a regular $1.75
annual basis; this is tne equiva-

Specializing in

Corporote & Municipal Securities
of the Southwest

lent of

*

Nineteen hundred fifty-four

mNext tcTfalMnto

line

Bankers Trust and

increased

ers

20 cents

a

stocks;

yield, if
js o.85%.

avenge

you

are
quoted
earnings ratio

about

18

earnings
sence,

to

do
I

L

not

list

a

their;

call

IBA GROUP

regular rate by
to $2.80, while the

on

Most

publish

price

a

to

increased

its

NEW YORK

usual

average'

life
per

com^

Guaranty
Then,

on

figures.
In their ab- *
employed Conning #

have

^ Co.'s estimates of last year's socalled

earnings.

jn this connection,
minded of the story
Mother, her son and
lady| the eiderly lady

I

am

re-

about

the:

an elderly
says to the
boy's mother "how old is the lit-

tie

boy?" and the mother replies

"well, physically, he is

10;

that

announcement

Securities

Corn

its

Exchange

holders

for

r

j

'

days, he will be just nine next
Sunday."
j -- So it is with fife insurance
stock earnings, each expert has a
.

_

One expert

will

"this company earned $20 a ^ia.c
a share

Where does that leave

poor ;

unsuspecting investor?
Admittedly, it is a complex job
to analyze earnings of Life companies for any single year. - Unlike fire and casualty companies,
each life company is a thing unto
itself.
There is no comparing
them with each other, even. Each

CHAIRMEN

NEW ENGLAND

CANADIAN

ask

additional

>B.K„Baldwin

capital
funds of about $20-$25 million by

[issue

of. rights

to

price

be

l-for-8

at

announced

at

Nesbitt, Thomson and

a

later.

,

'

Company, Limited'
Montreal

*

Measured! by

the

Banker" .Index,

.our

:City bank issues

above

about

11%

or

the

of

Midwest

Stock

Texas National Bank

Exchange

Bell

Teletype HO 42

this

is

That is the
index
and
I

see

no

mean

(fire

either cash

insurance

and

local investment dealer

Investment Advisor and
Principal Underwriter
National

Bank
P.

O.

Texas

871




Bell

3%

a

1.

the

yield

1.)

stock.

or

STOCKS
market

times

18

Prices

insurance

its

1954

MUNICIPAL, COUNTY

stock

average

should

liquidating
value,
surplus,
voluntary
re¬

and

from

33V3%

DISTRICT

BONDS

and INSURANCE STOCKS

worth

be

so-called

serves,

up

to

40%

recently when the Connecticut

General
ers

of

ford

Life

the

an

offered

PUBLIC UTILITY

and INDUSTRIAL

Bonds, Preferred and Common Slocks

Teletype: HO 566

•

DISTRIBUTOR

National Fire

Fire

stock,
as

at

the

up

in

price

of

$158.75
moved

about 60%
sell at 145
is

almost
or

liquidating
by

better.

this

of

type

the

of

MERCANTI3LE RANK

BUILDING, DALLAS, TEXAS

close

immediately to

indicative

inherent in

COMPANY

selling

a

1954,

DEALER

of Hart¬

exchange of stock.

National

This

UNDERWRITER

sharehold¬

then in the 90's with
of

Telephone: CApitol 7-0211

on

value

Bldg., Houston,

BOX

Boston

of the unearned premium reserve.
This was pretty well pointed-

TEXAS FUND MANAGEMENT
COMPANY
Texas

to

only
about 64% of mid-year 1955 liqui¬
dating values.
Now, I think any good property

capital,

or

White, Weld & Co.,

City~~"

their

14

stock

about

and

earnings.

your

John W. Valentine

Co.,

casualty)
rests on a
of
a
3.60%
average

platform
yield

be obtained from

New York

£-

to alter my pre¬

reason

INSURANCE

may

Weld

I look for increased divi¬

The

Prospectus

and

E. Jansen Hunt
White,

average

and

is

ratio

picture. (100.0

would

dends

SECURITIES OF THE SOUTHWEST

8%

or

year

Their

4.25%

PER of 20 to

a

diction.

A MUTUAL FUND
INVESTING IN

this

time.

about

price-earnings

Telephone CApilol 8-8221

points

of

the lows of the year.

over

at

yield

HOUSTON 2, TEXAS

on

They are also now eight points
higher than they were one year
ago

Building

six

start

bf

are,

higher by about eight points

are

Members

the

within

highs

gap from
the
September.
They

average,

York-

New
now

small

a

last

FRIDLEY, HESS & FREDERKING

"American

are

value

common

stock with such liquid assets.

The

}

?

.

-

'

Abilene

*

says

Chemical

Bank

;

emo- ;

the

came

the

'

tionally, about seven; intellectu- *
ally, about 15; and counting birth-i

total $4 basis.

a

Thursday,

on

r

share :

Tin earlier years. This action placesA

Corporate and Municipal

•

"

year-end extra dividend payment
'to 80 cent's a share as vsr 50 cents!

DEALERS

it

"

They

panies

can

the

were

its

year

Guaranty
DISTRIBUTORS

I have

life

top-rank

the Guaranty.

On Wednesday of last week Bank¬

UNDERWRITERS

was

a. banner year, and, from all the
*b*s .year too, will establish new highs, with business

increase of about 9yg%

an

-

nrp" last year; another fellow says; :
hell, it was more like $41 a share." -

J^nrr?Hnofinn

tectfon

1

of fact,

matter

10

different figure.

.

the great life

There

most

times

in-

_

or(* as
but> ^
<?° weJi

a

of

'

j

good

6JH-; Home Insurance,
Ph?en1^' 131; etc.

.

Irving

friends at Manu-

our

,

market

fishfn«new hl* h mark<fIn

future.

near

the

better.

.

as

_.

____

record, about 80% of net operating earnings. I am sure we will

" '"

.

*or Home to sell at 80 would
single mea" a ,nse °.f 1?eaJ1Jf
points

to note that I heard not orte

squawk from any

,.

the subject of
point I am

and it is interesting

papers

xi-

Were

This appeared in the "AmerBanker" and other leading

ican

_

surance stocks to move up to approximate liquid, values, then we
Under date of would see, for instance,
Aetna
bold as to "up" Fire: at 120, Cont. Ins. 138; Fideldividends
by ity Phemx, 158; Great American,

up

this

on

\'■%.

.

book value alone of National Fire,
was
Per share and its invested assets per share were about

Dividend Rises and Splits

BOSTON,
Mass. — Thomas
E.
Campbell is now with Hodgdon &
Company, 10 State Street. He was

.

,

.

_

(77.0=4% even).

move
t*-

K.

,

rates, the average yield

would be 3.85% at the

Hodgdon Co.

(Special to The Financial Chronicle)

John

or

big Life companies operate
as
mutuals,
there
are
quite a number of capital stock1
companies—some -very big ones,J

And Insurance Shares
dividend

forthcoming

another 20%

nothing in the outlook to stop
While

Dean Witter & Co.
.

year:

President:

up

it.

Doyle,

Francisco announced its Board of
Directors

jrom page 13

is

Treasurer: Raymond J.
Jr., F. S. Smithers & Co.

Elects Officers

Continued

Kennedy,

Thursday, December 15,1955

..

.

Plainviev

San Aaiomn

'

>

-

*

<

Volume 182

must

be

Number 5490

treated

as

.

.

The Commercial and Financial Chronicle

.

individual

an

broadened

In

prices

relation

to

their

huge re¬
sources,
Life :r company
capital
structures are small; hence the
heavy warning-power they possess.
More and

ing

Dealers

more

about

these

life

learn¬

are

issues

and

consequently, the relatively small
are being bid .for
with increasing pressure./So long
this condition exists,

the

stocks

rise.

One

think

almost

are
i

saturation point.

these

issues

reached

I

being

are

on

any

-r

or

be at 20

be

I don't know,

But, I do know, you never get

Just

other

good, equities.

higher, but you

consideration and watched.

can't

that

with

While

get

The

eighth.

last

time

being developed for

are

nevertheless,
they do not

is

when

-Don't

this

pos¬

v

I

am

that

perfectly willing to admit

there

may

be

some

individ¬

marketability in its truest

sense.

ual issues still priced at or

The

being

their

for

market

them

is

let

on

I

using

are

cover ' up

that

igno¬

of fact..

rance

Those

of

which

will

be

Authority

can

used

to

finance

construction

words

to

cover

and

up

try

to

justify things that look awry.
You know, the permanent plateau
of stock prices, and that sort of
smart patter,

I don't subscribe

to that

a

new

bridge

headed jointly by Blyth & Co., Inc.; The First Boston Cor¬

poration;

Harriman

Ripley

Brothers submitted the

rest rate of 3%%.
a

complete 90

The

Incorporated

Lehman

and

an

inter-

are

being

named

bonds, maturing Sept. 1, 1995,

in operation in 1953, the new four-lane bridge
miles

of

modern

Sacramento and San Francisco.
the Carquinez

Co,

high bid of 101.419 which

banking

price of $103.

When placed

will

&

An investment

Strait,

now

restricted for southbound

four-lane

highways

between

The present three-lane span over

handling two-way traffic, will then be

traffic, while the

northbound traffic.

;>

bonds, proceeds
of

group

reoffered at

using high-sounding

Dec. 13 sold at competi¬
revenue

the Carquinez Strait in California!"

\

—

on

issue of $46,000,000

new

a

across

us
who remember
recall the same type of

new

bridge will handle

A

school

investment

below

price potential.

thought that is currently push¬
ing a doctrine of junking the old
standards of value.
I say "stick
to those fundamentals you learned
at your investment cradle; in the
long run they will be proven
right."
Don't

GROUP

"go"

Nothing

EASTERN

in¬
on

yet, been
banks or

has, as
replace

to

in¬
in¬

companies

surance

SOUTHERN

SOUTHEASTERN

or

solely

bank

a

issue

growth value.

merger

CHAIRMEN

for

stock

vented

PENNSYLVANIA

sights

our

"Growth?

surance

IBA

lose

us

thing, I for one,
feel that it is
being somewhat
Overdone; Th some cases inexpe¬

they

strong.

£re

that unusual feature of ready

sess

them

sell

to

of

bidding

of

we

must admit that

general vein:

tive

'

>

issues,

in

now

139

$46,000,000 California Bridge Bonds Awarded
The California Bridge

caution,

.fudging"

them

me.

Caution

1929

may go

these

of

word of

a

more

a

going to have

are

selective, believe

Word

soon,

Sure, they

markets

you

very

poor

down

move

be

if their* rienced. persons
favorable income tax term rloosely to

easily.. That must be taken into

ness,

to

and

as,

taking a profit. So pretty
I would start combing the
lists and taking out some of those
long profit issues and replacing

re¬

signs of future weak¬

the priees will

ceiling

a

may

is nullified.

status

distributed as it were, from strong
hands to weaker hands/ I think
that

It

when,

present very

to

though!

thought,

bound

else, hit

times earnings or the top may

prices of

However,

.

that

so

everything

share capitals
as

at

relatively
high
the percentage of
growth from here on is apt to be
of limited nature, I would think.
I think you will agree that they
are
not
going to go higher in
price
forever.
They : will, like

industry.

(2663)

in

the

Sanders

econ¬

the
place of real, wholesome internal
growth.
nothing

and

omy

Newsom

&

INVESTMENT SECURITIES

takes

1309

main

street

Dallas

Galleher Mgr. for
Bache in Washington
WASHINGTON, D. C.

—

Bache

&

Co., members of the New York
Exchange and other lead¬
ing securities and commodity ex¬
changes, have

Stock

announced the

appointment
of

Janney &

Roderick D. Moors

Co.,

Alexander
The

Branch, Cab?ll & Co.,

Philadelphia

Richmond, Va.

Yearly, IV

Robinson-.

R.
as

Manager

of

the

Humphrey Company,
>

George

Galleher
Bartram M. Wilds

Inc., Atlanta

firm's

Washington,
C., office

D.

is-V lo¬

which

-;://///////////////////////////////////////////////^^^^^

cated

in

Hotel

ington.

Underwriters
;

v

<

.

Distributors

-

B.

Dealers

Leon

continue

Associate

as

Manager
the

in

George R. Galleher

of

office.

During his

Trading Markets in Southwestern Securities

tfltfiullwJiitumd
Q)a//ad, SleocaJ

Brubaker

will

Corporate and Municipal Securities

the

Wash¬

more

than 20 years
.■

the

banking

and

brokerage

businesses, he has been active
Secretary
branch

;

Eppler. Guerin
400

&

Turner

of

Fidelity Union Life Bldg.
DALLAS

the

American

structor
of

Riverside 3681
l

the
Washington
Philadelphia-Balti¬
Exchange; a member

Banking and

1, TEXAS

Teletype—DL 358

of

of the

Stock

more

the

in

the

on

Institute

its faculty

of

in¬

as

investments; member

Sales

Washington

Direct Wires to

as

Executive

and

as

Club

of

member of

a

Washington Bond Club.

Rauscher, Pierce & Co., Inc.
Member
-New

York

Stock

Exchange

American

Stock

Goldman, Sachs & Co., New York
.

Muir Investment Co., San Antonio-—Robert E. Levy & Co., Waco

:

Underwriters

With King Merritt

'

Brokers

(Special to The Financial Chlonicle)

\ LOS

ANGELES,

Midwest

Exchange

Stock

Exchange

(Associate)

•

Dealers

Distributors

•

Calif.—Floyd

SI Kt,

E. Graybill is now connected with

King

Southwestern

Securities

Merritt

South

Broadway.

&

Co.,

Inc.,

1151

Joins Shearson, Hammill
(Special to The Financial Chhonicle)

LOS

ANGELES,

Shearson,

Municipal Bonds

Calif.—Hugh

T. Meyers is now associated with

Hammill

&

Co.,

Bank and Insurance Company

Mutual Investment Funds

South Grand Avenue.

i

Investment

Securities

Company

Bankers.
J

Lufkin

H. Oye is now with Taiyo

OdeCsa

Phone

Riverside

Railroad and Industrial

Bonds—Preferred Stocks—Common Stocks

LOS ANGELES, Calif.—Hiromu

I ALLAS, TEXAS

Branches:
Midland

Public Utility,

With Taiyo Securities
(Special to The Financial Chronicle)

MERCANTILE fC.HMERCE K M I ISC

Ft. Worth

J

Stocks

520

5471

ties

Company,

208

Securi¬

South

Mercantile Bank

San

UNDERWRITING
UNLITTED
Direct and

—"RETAIL

Pedro

Bldg., Dallas 1, Texas

-

TRADING

Telephone

Street.

A. Wayne Hough Adds
(Special to The Financial Chronicle)

CORPORATE/, MUNICIPAL ECND/
Connecting Wires to All Principal Financial Centers




Bell Teletypes

Riverside 9033

Monahans

DL 196 and DL 197

Austin
San

•

Harlingen

Antonio

*

Houston

Tyler

•

*

Lubbock

Waco

PASADENA, Calif.—Edward J.
Allen

Wayne

is

now

associated

Hough

Building.

&

Co.,

with

A.

Security

Private Wire to New York,

Other Principal

St. Louis and

Markets

_

4

140

(2664)

The Commercial and Financial Chronicle

Indications of Current

Business Activity
IRON

Indicated

steel

AND

INSTITUTE:

STEEL

operations

Week
..Dec. 18

(percent of capacity).

latest week
week

Latest
AMERICAN

The following statistical tabulations

§99.3

or

or

month available.

month ended

Previous

Month

Week

Ago

on

99.2

AMERICAN

Crude

(net tons)

§2,397,000

*2,416,000

2,394,000

1,950,000

Total

average

(bbls.

Dec.

2

6,836,400

6,858,800

6,777,100

Dec.

2

7,801,000

7,741,000

7,561,000

6,962,000

Dec.

2

26,963.000

26,201,000

26,433,000

24,410,000

Dec.

2

2.312,000

2,396,000

2,311,000

2,554,000

Dec.

2

12,475,000

11,844,000

11,691,000

11,187,000

oil output (bbls.)
Dec.
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Dec.
Kerosene (bbls.) at
Dec.

2

8,350,000

8,600,000

8,076,000

7,555,000

stills—daily

(bbls.)

average

(bbls.)

output

Kerosene output (bbls.)
Distillate fuel oil output

(bbls.)

Residual fuel

Distillate

fuel

Residual

oil

fuel

ASSOCIATION

(bbls.)

OF

AMERICAN

152,004,000
36,444,000

2

140,103,000

145,374,000

151,988,000

45,045,000

45,932,000

54,355,000

freight loaded

freight received from connections

(number

of

U.

S.

Dec.

3

728,216

676,685

808,709

Private

3

617,489

647,964

693,360

COAL

(U.

coal

$330,333,000

$278,795,000

$267,920,000

$258,341,000

Dec.

S.

139,050,000

173,248,000
105,547,000

162,168,000

156,326,000

lignite

ELECTRIC

Electric

output

FAILURES

(in

INDEX—FEDERAL

steel

83,627,000

18,388,000

102,015,000

Pig iron

(per grosa

10,450,000

9,030,000

10,180,000

—

DUN

3

549,000

456,000

455,000

3

197

146

128

&

U 1,426,000

11,359,000

10,878,000

Export
Lead

refinery

tin

(New

(St.

Zinc

(East

MOODY'S

St.

8

219

209

207

5.174c

5.174c

5.174c

4.797c

7

$59.09

$59.09

$59.09

$56.59

7

$49.50

$47.00

$44.83

BOND

Dec.

42.975c

42.700c

42.800c

44.500c

45.375c

43.500c

100.125c

96.250c

89.875c

104
185

25

28

23

58

69

127

134

95

345

475

320

89

97

83

24

32

50

54

13

15

$1,369,127

$1,525,503

Total

Private

15.000c

OF

14.800c

mated

in

AVERAGES:
95.03

95.50

99.07

107.44

187.98

110.70

Dec. 13

111.62

109.42

109.79

107.09

107.27

107.80

110.70

102.13

102.46

102.80

105.00

105.34

105.69

Dec. 13

107.27

107.62

108.16

111.25

108.34

108.70

109.24

112.00

106.21

2.88

2.87

2.84

2.57

Dec. 13

3.34

3.31

3.28

3.13

corporate

Dec. 13

Industrials

Single

MOODY'S
NATIONAL

PAPERBOARD

Orders received

Production

COTTON

Percentage
Unfilled

(tons)

of

orders

3.08

2.89

3.20

3.18

1949

3.32

3.29

3.62

3.60

3.58

3.45

3.43

3.41

3.33

3.23

Crushed

13

3.32

3.30

3.27

3.10

Stocks

13

3.26

3.24

3.21

3.06

13

405.2

407.3

397.6

405.3

3

397,989

227,809

437,655

Dec

297,807

3

286,926

279,120

297,935

Dec.

246,190

3

I Dec.

|
93
654,613

95

103

87

3

542,397

725,673

392,807

13
at end

DRUG
=

DEALERS

EXCHANGE

Odd-lot

sales

—

period
PRICE

Dec

SECURITIES

by dealers

ON

EXCHANGE

(customers'

N.

Y.

Dollar

TOTAL

1q

Nov/

1,279,079

19

$74,162,912

FOR

Total

ACCOUNT

round-lot

$58,694,698

$50,879,324
741,158

ROUND-LOT

ON

THE

N.

Y.

4,830

4,634

iq

10,684

1,107,578

802,556

736,524

19

1,525,907

$59,408,308

$42,246,724

$36,935,557.

$69,204,683

MEMBERS

314,300

199,230

~

314~300

167,970

199",230

479,820

419,490

FOR

ACCOUNT

~
OF

on

the

167,970

2

423,860

549,780

443,030

12,657,850

9,774,320

8,772,270

19

10,217,350

9,146,070

the

1,117,710

245,270

206,980

3""

193,280

140,847,000

NEW

161,362,000

148,136,000

170,721

(tons)

330,412

252,812

31

291,966

90.994

—

60,332

—!

—

86,157

153,310

106.390

144,362

91,808

132,639

(running bales)—
31

185,200

199,049

308,514

224,466

277,760

184,827

492

397

1,378

1,170

2,531

1,283

1,007

2,027

4,690

2,796

4.881

2,740

1,831

3,230

846

821

2,101

227,562

(1,000-lb. bales)—

—

.—

—

.

SPINNING

(1,000 pounds I

1,262

—

(DEPT. OF COMMERCE):

spindles

in

spindles

active

spindle

hours

place

22,257,000

22,601,000

.—

19,302,000

19,243,000

19,295,000

29

9,512,000

11,363.000

9,042,000

place Oct.

475.6

454.5

457.8

Oct.

on

Oct.

on

(000's

WEIGHTED

COMMON

931.090

1,059,100

1,591,090

1,138,070

1,252,380

237,600

229,470

22,194,000

29_

29

omitted)

Oct.

29,300

18.240

32,330

19
19

346,980

267,210

222,020

394,380

296,510

240,260

504,040

501,050

94,800

88,800

44,870

19

490,463

417.730

of

Nov.:

(125)

3.96

UNITED

709,202

579,263

2,806,710

1,859,350

—

—

(200)

STATES

GROSS

DEBT

DIRECT

3_3333nov!
33 Nov.

1,874,000

30

fund

Computed
U.

3,366,380

387,470

325.080

256,390

543,950

19

2,307.202

1,685,763

1,693,850

balances

2,013,843

1,955,240

3,433,004

S.

1

annual rate.

GOVT.

4.26

2.73

2.74

4.12

4.39

$279,865,604

$278,887,507

5,313,658

7,303.761

$274,551,946

$271,583,746

—As
Total

of Nov.

face

2.425%

STATUTORY
30

2,889,054

2,694,672

4.16

AND

715,300

19

5.43
4.60

GUARANTEED—(000's omitted):
As of Nov.

General

/

4.29

5.34

5,118,945

(24)

809,754

19

Nov. 19

of members—

3.96

2.63

Tel.)

4.62

$280,189,391

&

4.97

4.09

Tel.

Amer.

4.55

4.09

—

incl.

(not

(15)

Average

717,234

462,600

STOCKS—Month

OF

92,520

614,402

YIELD

(25)

Insurance

633,540

703,430

Eanks

601,210

19

AVERAGE

$275,070,446

613,000

47,400

Utilities

1,989,710

375,620

Railroads

amount

DEBT

2.416%

2.300%

LIMITATION

(000's omitted):
that may be outstanding

—

U.

S.

DEPT.

OF

$281,000,000

Meats

111.1

*111.1

111.2

83.9

85.2

90.9

98.0

98.2

99.0

and

foods

72.4

72.9

75.6

84.7

Dec.

119.3

119.2

119.1

114.7

808.000

barrels of foreign
crude runs.
?Based on new annual capacity
1954 basis of 124,330,410 tons.
fAll-time high record.
of orders not reported since introduction, of
Monthly Investment Plan„

against Jan.

1,

.

of

Total

103.4

Dec.
farm

278,853,086

53,011

48,069

34,420

$280,189,391

obligations

not

owned

$279', 865,604

$278,887,507

476,425

477,740

530,173

$279,712,965

by

$279,387,864

$278,357,334

1,287,034

1,612,135

2,642,665

the

109.4

84.0

Dec

foods

$281,000,000

279,817,534

Outstanding-

Treasury

Dec

products

$231,000,000

280,136,379

SERIES

Guaranteed

^Includes

243 422

122,648

Oct.

100):

than

150,240
233,349

308,022

-—-

Active spindle hours per spindle in

1,570,610

1,345,820

Dec




96,846,000
101,707,000

328,503

Spinning

419.100

19

3333333—33 Nov!
account

commodities

tNumber

817,314,000

389,840

Active

2,038,080

Cbmmodjty Group—

as

273,143,000

125,255,000

(tons)

Industrials

1,143,480

Nov. 19

figure.

170,682,000

283,477,000

Produced

721,320

19

Nov

sales

1955,

219,744,000

159,431,000

103,998,000

432,202

KM)

1,727,660

floor—

Total sales

1,

105,742,000

236,807,000

Oct. 31

Motes, Grabbots, etc.

17,580,900

Nov.| 19

Nov!
Nov!

sales

Total round-lot transactions for
Total purchases
Short sales

•Revised

683,980

87,689,000

152,131,000

Produced

16,859,580

13,207,630

373,800

Nov. 19

off

Total sales

of Jan.

1,503,092

155,640,000

31

(tons)

Hull Fiber

361,320

Nov. 19

other

1,959,057

494,196

916,780

1,689,369

Oct. 31

(tons)

MOODY'S

33333 Nov!
33333333333— Nov.
333333333333333 Nov!

commodities

1,065,530

707,751

1,898,398

.

MEM¬

Short sales

All

(tons)

Oct. 31

Shipped

5~26~220

19

floor—

Total sales

Processed

1,779

Produced

526,220

Nov. 19

3

=

2,807

of

(tons)

Stocks Oct.

COTTON

Nov!
Nov!

II-III

PRICES,

2,335
•

PROD¬

Shipped

Nov. 19

(1947-49

SEED

COMMERCE—Month

Spinning

transactions initiated
Total purchases

Parm

mills

(tons)

Shipped

19

Nov. 19

~~

Other

All

Linters

19

TRANSACTIONS
(SHARES):

sales

—

OF

COTTON

Oct.
(pounds)

Produced

STOCK

purchases

LAUOK

3,019

(pounds)

Shipped

sales—

transactions Initiated

WHOLESALE

2,629

STOCK

Bhort sales

Other

6,921

Stocks Oct. 31

sales

Other

1,642

4,641
'

1,833

(pounds)

Stocks

1,536,591

9,797

Nov

SALES

TRANSACTIONS

Other

2,657

Produced (pounds)
Consumption (pounds)

$65,772,030

807,386

Nov. 19

Bhort sales
Other sales

Total

7,481

-

Stocks Oct. 31

BERS, EXCEPT ODD-I.OT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in
which registered—
Total purchases

Other

Stocks

1,370,675

1,117,375

Nov

Total sales

Total

973,161

Nov

Short sales
Other sales

ROUND-LOT

1,022,356

Nov. 19

OF

5,287

1.589

5,257

_

loans

AND

at

Produced

106.73

19

dealers—

ROUND-LOT STOCK

107.12

19

Nov!

ANI)

107.17

N0V'

sales

EXCHANGE

1,611

_

Refined Oil-

Stocks

:

by

_

7,594

(pounds)

Shipped

by dealers—

purchases
Number of shares

__

_

Hulls-

other sales

Round-lot

loans

(tons)

Produced

Number of shares—Total sales
Short sales

Other

10,365

5,762

modernization

(tons)

Stocks

purchases)—t

short sales

sales

107.17

Nnv

value

Round-lot

■'

Crude Oil—

COMMISSION:

Odd-lot purchases by dealers (customers'
sales)—
Number of orders—Customers' total sales
Customers'

Received

STOCK

value

Customers'

g

ODD-LOT ACCOUNT OF ODD-

SPECIALISTS

Number of shares

Dollar

21,935

26,155

Cake and Meal—

FOR

AND

26,699

Cotton Seed-

3.13

Shipped

INDEX—

100

STOCK TRANSACTIONS
LOT

of

REPORTER

$28,856

$33,636

_

October:

ASSOCIATION:

I

AVERAGE

RE¬

credit

3.03

—

(tons)

OIL, PAINT AND

132,343

30:

credit

UCTS—DEPT.

3.13

Dec!

activity

674,148

13.547"

SEED

3.23

„

(tons)

130,640

credit

—Dec!

;

INDEX

term

credit

payment

Service

Dec

Group

COMMODITY

408,091

SERIES—Esti¬

Charge accounts

3.16

I__Dec

.

FEDERAL

Non-instalment credit

13

Group

THE

Personal loans

3.33

Group

Utilities

OF

intermediate

of Sept.

as

end

Dec. 13

Railroad

400,902

--

OUTSTANDING—BOARD

and

consumer

Dec. 13

Baa

as

millions

Dec. 13

;

Public

540,434

294,380

SYSTEM—REVISED
short

Repair

108.88

Dec. 13

Aa

993,961
531,542

Other consumer goods

AVERAGES:

Aaa

$1,214,582

964,78T'

404*340

Automobile

112.56

Dec. 13

A

|

CREDIT

Instalment

115.24

Dec. 13

U. 8. Government Bonds

•

110.70

Dec. 13

Average

110.15

Dec. 13

DAILY

11

of

municipal

GOVERNOR'S

Total

108.88

YIELD

"

.

109,960

and

SERVE

11.500c

Group

Month

—

construction:

Federal

13.000c

Group

16

53

"

CONSTRUCTION— EN¬

construction

CONSUMER

15.300c

Group

49

omitted):

construction

15.500c

A

building

NEWS-RECORD

(000's

S

15.300c

94.89

BOND

U.

13.000c

106.92

MOODY'S

institutional

ENGINEERING

15.500c

Dec. 13

Utilities

■

water

November

15.500c

Dec. 13

Industrials

and

and

13.000c

Average

Public

317

366

29.700c

U. 8. Government Bonds

Railroad

building

42

15.300c

Baa

22

212

Dec.

Aaa

971

21
351

Dec.
DAILY

12

1,179

20

_1_

34

.Dec.

PRICES

11

23

30.925c

105.375c

at

corporate

300

985

;

—

building

GINEERING

$32.17

Dec.

at

55

323

11

private—.

construction

Public

at

60

223

7

Dec.

Louis)

383

32

298

utilities

Miscellaneous public service
enterprises
Conservation and development

QUOTATIONS):

at

415

60

-

200

CIVIL

at

Louis)

other

State

York)

(New York)

Lead

388

telegraph

All other public

Dec.

J.

106

Highways

9,846,000

Dec.

M.

26

113

30

Hospital

192

Dec.

ton)

29

33

95

Educational

610,000

PRICES:

1

■

30

34

and

Nonresidential

&

Domestic refinery at

■traits

28

institutional

and

construction

Residential

Electrolytic copper-

.

48'

Public

8,603,000

Dec. 10

INDUSTRIAL)

Scrap steel (per gross ton)
(E.

'

183 ^
59

Military facilities

3

Dec.

lb.)

(per

METAL PRICES

62,163,000

43,589,000

Dec.

COMPOSITE

Finished

90 5

3113 1

21

'Sewer

AND

203

69

Other public

All

RESERVE

1(H)

kwh.)

000

'

•

22

Telephone

INSTITUTE:

(COMMERCIAL

AGE

91,080,000
14,467,000

Dec,

=

*

•

45

Industrial

BUADSTREET, INC
IRON

163,099,000

105,752,000

Dec.

(tons)

AVERAGE

178
.

-

67

Miscellaneous

MINES):

(tons)

SALES

199

.564;

21

.

Other nonresidential

STORE

SYSTEM—11)47-49
EDISON

OF

191,283,000

Dec.

.

BUREAU

and

206

195

Public utilities

Dec.

Pennsylvania anthracite
DEPARTMENT

187

.

Railroad

municipal

OUTPUT

Bituminous

building

105

"

28,184,000

and

nonresidential

311

110

,

22 '
-

..

220

297

warehouses

96

31
730

224

buildings and

2,358

45

Farm

ENGINEERING

—

construction

construction

State

109

31

Educational

570,542

..Dec.

of

(no.

construction

Public

-1,175

716

building (nonfarm)

Religious

661,777

cars) —Dec.

cars)

CONSTRUCTION

1,293

1,315

$3,329

Social and recreational

NEWS-RECORD:

Total

1,455

98

Stores, restaurants and garages
Other

2,724

1,245

alteration's

$3,903

1,374

Commercial

Office

Ago

2,584

Industrial

131,432,000

44,156,000

and

Year

Month

$3,569

Nonhousekeeping

35,430,000

2

date:;

(in millions):

building (nonfarm)
dwelling units

Nonresidential

151,378,000

34,315,000

of that

Previous

OF

construction

Additions

RAILROADS:

Revenue

ENGINEERING

155,866,000

33,221,000

as

Hospital

:

Revenue
CIVIL

157,535,000

Dec.

at

2
2

Dec.

at

(bbls.)

oil

DEPT.

construction

New

6,825,700

Gasoline

S.

Residential

of

42 gallons each)
Crude runs to

CONSTRUCTION—U.

new

Private

output—daily

are

Month
BUILDING

INSTITUTE:

condensate

and

.Dec. 18

of quotations,

cases

LABOR—Month of November

and castings

PETROLEUM

oil

in

or,

either for the

are

Latest

Equivalent to—
Bteel ingots

Dates shown in first column

that date,

Year

81.8

Thursday, December 15,1955

production and other figures for th«

cover

Ago

*100.1

...

125,828,310 tons

gross

teed

public

debt

outstanding

public

gations not subject to debt
Grand total

under

guaran¬

obligations

Deduct—other

Balance face

and

obli¬

outstanding

amount

above

debt

limitation—

of

obligations,

authority-

issuable

,

Volume 182

Number 5490

.

.

.

The Commercial and Financial Chronicle

(2665)

Continued

Bank and Insurance Stocks

from

];

This Week—Insurance Stocks

;

A breakdown

of

group
-

fire

casualty

..

of net income

insurance

periods gives interesting results.

It is

stocks

before taxes

for

two

of

1950-1954, inclusive, of the percentages of net derived from
underwriting operations and from investment activities.
The
table gives, for both
five-year periods, and before Federal income
taxes, the Ratio of Adjusted Underwriting Gain to Total Net

Earnings, and the Ratio of Net Investment Income to Total Net
Earnings. In other words, what percentage of total net came from
underwriting and what percentage from investment income?
Ratio Adjusted Un¬

ment Income to

Total Net Earnings
11145-4!)

1945-49

u"ee

49%

55%
45

67

two

30

43

70

31

46

39
64

64

American

Surety

__

Bankers & Shippers
Boston

Insurance

61

14

28

86

71

64

29

29

50

69

66

31'

64

26

36

49

28

51

72

50

4

50

96

Fidelity & Deposit
Fidelity Phenix
_

Fire

Association

_

__

_

Fireman's Fund

59

34

41

52

22

48

*

Reinsurance

Glens

Falls

Great

American

35

43

Hanover

Fire.

__

37

__

Hartford Fire

Insur.

Co.

38

63

:National Union.

46

Southern

Atlanta,

the

New

Hampshire

52

87

71

39

49

90

17

13

83

Northern

87

Pacific

Paul
_.

*

_

56

41

40

72

26
55

73

50

57

59

Westchester

58

37
30

47

40

49

■60

46

48

-

the

at

a

And

conversely, the share of total net earnings ascribable to invest¬
ment income was for a large majority of the companies greater
in the later years.

In the two periods, the industry underwriting

The average figures were 6.2%
5.8%, respectively, to 1945-1949 and 1950-1954. The shift was
in part at least due to the incidence in the later span of consider¬
ably more in dividend receipts because of the higher corporate
earnings. But probably not all of the shift has been due to this
factor.
The mutuals have been taking a somewhat increasing
profit margin did not differ much.
and

share of the premium volume,

that

companies in this list

which also tends to make it appear
edging over into the investment

are

trust field.

Another point
instances
that

the

have

brought out by the tabulation is that in most

stocks that show up

discussed

been

in

margin, gain to the stockholder

relatively high

proportion

operations. And this is
of

a

fire

or

as

better under the various tests

this

space

over a

of net

as

(underwriting

long period, etc.)

coming from

profit

show

a

underwriting

it ought to be, for the primary function

casualty insurance company is its underwriting activi¬
a

secondary facet to underwriting.

may very

And, under

well suffer less than investment activities.




with

the

in
of

purpose

days

90

over

periodically
number

a

conveniently

more

sum

than

repayments within

It

said

is

kmd

to

the

m

of

be

30

the

Southeast,

the present time apto be what the monetary
authorities will do to counteract
the forces which will have a
tendency to remove some of the

pears

con-

The

availability

of

credit,

the

long-end of the government

getting

buying

more

than has been the

attention
in the past.

case

'
Deposit Banks "Overbid" for
New Tax
The
to

Bills

reception which

the

tax

tended

was

anticipation bills

Although the Central Banks, are
n°t overloaded with Treasury
bills, they do have sizable holdings of Treasury certificates and
it seems as though the Federal

Reserve Banks would not hesitate

dissimilar

not

to

that

was

which

was

is not available for invest-

money

ment in selected issues of
government

securities, yields have a
tendency to seek higher levels,

Even
to

though there

be

for

the

through

Business
have

ments

training

September

the

Atlanta

William

William

a

C&S

area,

Service

are-

in

by Mr. Parker-

Business

aonointed

Departspecial

undergone

since

In

Small

officers
Hoff-

R

A.

Fisher; Frank
Barnes; W. H. Gilbert; Edwin H.
Baggett;
John
Mclntyre;
Joel
King; Hubert Harris; J. Harrison
Hopkins and W. Barrett Howell.
Outside
Atlanta, those named
were:
Hal
Hoerner,
Savannah;
Clyde Dean, Albany; Joe Wickliffe, Athens; James Sartor, Jr.,

bngU SR; ™owimSmith' ^
Grange; Robert E. At water,
Macon; A. Penniman Wells, New^
man;
James P. Culpepper, Jr.,

Lhg^,a^taand WilUam H'
^

'

*

,

A

;

„r

„

Plans of the First Western Bank
&

Trust

cisco,

Company

to

California

of

San

northernmost

s

P.

Coats,

Board,
had

with

the

ment

for

a

formal

State

of

office

there.

State

application
Depart-

to

Superintendent

In

the

the bank

Banking

permission

City,
port

6, when

Chairman

announced that

filed

Fran-

Crescent

enter

city, were revealed Dec.
T.

tax

and

account, quite a few of the
deposit banks did not go along

with

it

that

put

this

time

certain

in

of

bids

It

is

these

which

fipancing, and

6reporte2

institutions
M

were

h

open

addition

of

First Western's Crescent

~

,

Ki

seat

of

Norte

Del

result they did

pressure

'the

IZ

continues,

of the boom

though 1956 is a new year,

even

Now With Walston Co.
Calif.

to

—

A.

Paul

principal

city

Eleventh St.

York'"and

Exchanges.

YOrK

new tax anticipation Stock

bllls
the open market believe
the yields they o b t a i n e d them
f ' 1more than offset the advanag,
carrying them in the tax
loan account through direct
,

dna

Francisco

San

Gan

U. S. TREASURY

Treasury of-

n

ng*

STATE, MUNICIPAL

Credit

Squeeze

and

The

Federal
a m°dest amount of
K.l tbef Th y mar.-'^
" Noneteles^ thl

is still on and there are

no indications

•

Continues

PUBLIC REVENUE
SECURITIES

yet of any major

change in policy by the

powers
The short-term market is

that be.

feeling
pressure

and

as

tions

the full effects of the
which is being put on,
long as economic condi-

are

relief

as

strong
to

appears

Whether

or

as

they
in

are, no

sight.

be

not there will be fur-

ther upward adjustments in rates

is Purely

a

matter of conjecture.

and the rediscount rate may even

ap-

Jf1'"

(Special to The Financial Chronicle)

?mre<?

the

Banks,

City

Philbin is "0W

di ect subscriptions to the Treasury- Some of the banks which ac- ^ew

L^Le'ln th^T^l banTfatl"

Crescent City is the

County.

of

»ctl°n 01

authorities, as long as the

s
.mJs.sfd the "tax
SAN FRANCISCO, Calif-—Stu^ecau.se their bids were too
tho
ctafF
hlgh' went into the °Pen market art E. Power has joined the staff
a^d bought them |at much better of Dean Witter & Co., 45 Montthan were available in the g0mery Street, members of the

an

Deposit Insurance

and

money

action

?

»

be raised again.
However,

it

Aubrey G. Lanston
& Co.
INCORPORATED

seems

as

though
15 BROAD

changed for

county

changes ™

any

Joins Dean Witter Co.

of

Corporation.

as a

°toer hand, these de-

these

Federal

rhanffp,

(Special to Tre Financial Chronicle)

'

,,

plication is subject to the approval
the

money

important

for

W

looking

be

the tax anticipation bills Walston & Co., 1028
original offering by the

'

;

™

the

government

Service

organized

man;

of

use

the

keep

to

market tight. It is evident that
the financial district should not

„

and

dustrial Development Department.
Officers
in
charge of the C&S

son.

the

Joan

rtke^JhtStat®' .S*,"Ce ?c£?" not Set
L
P°in,ted °ut' {he in the
a full-time In-

school

advantage in paying
tax
anticipation
bills

wherewithal

MODESTO,

opportunities

greater

Small

supposed

was

some

the'bank^s

f
C&S has operated

sustained economic recessions, the underwriting part of the busi¬
ness

started

program,

income

5

ties; investing is

spe-

The new departoutgrowth of a

of

build

higher figure in

1944-1949, inclusive, period than in the later five years.

under

officer

an

make repayments

part of

Probably the most noticeable thing in this tabulation is that,
exceptions, adjusted underwriting gains in relation
were

cussion at

they have been
ample evidence

is

iist is still getting a fair amount of

set

■'

with only a few

Federal taxes,

the

the

has

According to Mr. Lane, establish•

underwriting greater than to offset net investment income.

to total earnings before

get.

to

adjusted underwriting.

♦♦Loss in adjusted

in

department

of

an

months

54

1

to

is

lump

42

53

51

__

known

separate

first of its

63

_

offices

can

28

27

43

This

monetary authorities

strain which is on the money
market. To be sure, the Federal
uptrend in near-term rates, brings Reserve Banks do not have too
with it the question as to what large holdings of Treasury bills,
wm happen to the "Prime Bank and
there appears to be some
Rate" and the rediscount rate.
question as to whether or not«the

and specialized
Each of the 22

out
'

Stringency Eases
The important point of the dis-

of

and

direction

**

70

Guaranty

be

developing new loan techniques
to help growing businesses which

63

52

S. Fidel. &

in

56

74

50

will

made

is

Atlanta,

"

39

45

__

Standard Accident

U. S. Fire

40

37

60

Surety
.Security Insurance
Springfield

♦Loss

58

44

Washington

Seaboard

U.

55

52

44

Insurance

Providence

42

42
61

the

as

direction

general

10-year-old

45

60

it

ficult

48

_

Fire

Phoenix

St.

_

which

tinue to keep the pressure on interest rates in their endeavor to

Depart-

function

new

banks

ment

58

Insurance

North River

in

volume

..

61

50

What Will Happen When Money

he-

avail

is not yet

to dispose of some of these issues
als0 in order to offset the forces
received by the refunding obliga- which would tend to bring about
tions.
There is no question but ease in the money market,
them in these fields," Mr. Lane
that the tightness of the
money
There appears to be no doubt
f
;
aim }s. to glve s.maller market is the answer to what has about the ability of the monetary
local firms the kind of assistance
taken place in these two
operaauthorities to carry out the presthey require but now find it dif- tions of, the
.Treasury. When ent policies or their having the.

67

10

the ^oney

daily trained for the job. "Larger
firms employ specialists to help

134

33

B.

CitiBank,

Known
Service

locations]

a

the

57

*

51

...

Mills

problems,
pension
profit sharing plans, plant or

up

44

50

...

Amsterdam

Ga.

the

state

*

New

by

National

Business

C&S

88

43

13

„

33

12

29

Massachusetts Bonding.
National Fire...

56

48

America

No.

statewide

was announced

week-end

lending services.

62

54

_

*

a new

Jr., President of the
&

office

73

67

Home Insurance

*

48

57

have - advanced

rates

•

<e™e

tjiat

management

65

41

27

I''-"

104

52

59

government

term

The tight money market, and

and

78

-General

raising venture
upon the action
securities. Short-

limit

66

Firemen's Insurance

of loans usually have the
effect of taking some of stringencies away from the money market,
ment

the new money
having its effect
of

return
repay-

sale
these securities by the
Central Banks would be adequate
buying, with public pension funds to offset the return flow of curJohn E.
Parkerson, C&S Vice- supplying the bulk of this sup- rency from circulation and the
President in Atlanta. It will proport. Switching is just as promi- repayment of loans, early next
vide small and growing businesses nent
as
ever, with some of the year> in order to still keep the
with
help
on
record
keeping, intermediate-term maturities now pressure on the money market,

34

74

Insurance

employee trusts.

the

under

71

Federal

in

*

ment,

36

50

of the
Treasury, with the refunding and

0ffered>

oank

cinties tor

of

72

Casualty___

its

,the money market. The
flow of currency and the

the operations

by

P.r°Xlde collective investment fa-

Small

36

Continental Insurance..

Continental

week

of

_

273

36

It is

this

approval

inated

able to take these securities in the

«rst

e

Lane,

69

*

By JOHN T. CHIPPENDALE, JR.

ury,^partm<mt and
becomes
Kansas City to

57

54

National

written

special funds from the Treas-

zens

Agricultural

City

received

51%

33

American Insurance

iny>estn)ent agent

.

eacn participating trust.

,

,

added:

over

55

.

Governments

on

The money market is still dom-

banking service to help small and

1950-54

45%
_

i

Reporter

growing businesses

Total Net Earnings

1950-54

i

^

Establishment of

Ratio Net Invest¬

derwriting: Gain to

..

.

a

comparison for 1945-1949

a

.

the fee it regularly receives

is

five-year

and

Aetna Casualty
Aetna Insurance

.

tion

of the sources

and

Our

& Bankers

S
,

22

page

News About

By ARTHUR B. WALLACE-

141

after

two

the

should
have

rates
a

turn

be

in the

will

not

be

while yet, because
of the

there

year

developments

which

past tended to

ease

ST., NEW YORK 5

"Whitehall 3-1200
231 So. La Salle St.

45 Milk St

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463

142

The Commercial and Financial Chronicle

(2666)

..

.

Thursday, December 15,1955

it INDICATES

Securities Now in Registration

ADDITIONS

SINCE

PREVIOUS

ITEMS

•

I

REVISED

ISSUE

7

Allied-Mission Oil,

Automatic

598,800 shares of common
cents per share. Proceeds
drilling and development
of leases. Address—P. O. Box 1387, Tulsa, Okla. Under¬
writer—United Securities Co., same address.
Oct. 3 (letter of notification)

«tock (par one cent). Price—50
—For acquisition, exploration,

Aloha,

Inc., Las Vegas, Nev.

shares

two

of

of

share

one

stock.

common

of preferred

.

stock and

Price—$20.20

unit.

per-

For production of " production
Underwriters—First California Co.,
Inc., San
—

payments.

Fiahcisco,

Calif.; and Blair & Co., Incorporated, New York. Change
Name
Foimerly Continental Production Corp.

of

—

Statement has been withdrawn.

Oct.

Alpha Plastics Corp.
(letter of notification) 300,000 shares of class A
(par 10 cents). Price—$1 per share. Proceeds—

$90,000 to redeem the preferred stock; $18,100 to be
payable to stockholders for advances heretofore made
to company; for payment of current obligations, etc.; and
for working capital.
Office—94-30 166th St., Jamaica,
N. Y.
Underwriter — J. E. DesRosiers, Inc., 509 Fifth

—206 North

it American Business Research, Inc.

•

&

Fire

Blackhawk

Parking Service, Inc..
(letterof notification) 120,000 shares of non¬
voting common stock/class A—(par 50 cents) and 60,000
shares

Proceeds—For invest¬

be

:c

of

common

in

stock, class B

units

voting

offered

share:
ing

two

of

class

A

Building,

Casualty Insurance Co.

10

(par

and

one

cents)
class B

Price—$5 per unit. Proceeds—For general work¬

Office—505;, National

capital.

Charleston,

Bank

Commerce

of

W;. Va.' Underwriter—Crichton

Investment Co., same address.

■■',/7

v

Cisco Uranium

Corp., Salt Lake City, Utah ~ Aug. 10 (letter, of notification) 7,000,000 shares of capital

share, and 29,473 shares are to be pur¬
by Town and Country Insurance Agency, Inc.

$5

per

chased
i

working capital-and to

Charleston

Oct. 28 filed 200,000 shares of common stock (par $2.50),
which
170,527 shares are to be publicly offered

at

Proceeds—For

Aug. .1

of

it American Trusteed Funds, Inc.
Dec. 7 filed an>additional $1,000,000 in Lexington Trust

unit.

per

Bldg., Salt Lake City, Utah. Under¬
writer—Cayias, Larson, Glaser & Emery, Inc.,. same city.

Ute Uranium Corp., Overton, Nev.
Oct. 28 (letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For mining expenses.
Underwriter—James E. Reed
Co., Inc., Reno, Nev.

Dep. 9 (letter of notification) 19,000 shares of noncumulativev preferred stock. Price — At par ($5 per
share). Proceeds—For working capital and general cor¬
porate purposes. Office—8002 Wisconsin Ave., Bethesda,
Md.
Underwriter—G. J. Mitchell, Jr.,
Co., 1420 New
York Ave., N.W., Washington, D. C.

class A share at 62%. cents per shai-e). Price—

one

ties. Office—522 Felt

.

.

and 60,000 class warrants

current expansion and liquidate notes and liabili¬

meet

Big

Ave., New York 17, N. Y.

(par 25 cents)

to-pur¬

chase
$2.50

Virginia St., Reno, Nev. Underwriter—Mid
..
1:

America Securities, Inc., Salt Lake City, Utah.

stock

to be offered in units of five shares of class A stock and
one warrant
(warrant holders will be entitled

Big Ridge Uranium Corp., Reno, Nev. .
Oct. 19 (letter of notification) 9,000,000 shares of common
stock (par one cent). Price — Three cents per share.
Proceeds—For exploration and development costs. Office

stock

Buying Service, Inc.
^ %
(letter of notification) 300,000 shares of class A

17

common

share. Proceeds—For expenses incident to mining
operations. Office— 441 Thatcher Bldg., Pueblo, Colo.
Underwriter—Investment Service Co., Denver, Colo.
per

Underwriter—None.

Price—At market.

in units

Charge

Nov. 18

Shares.

offered

Proceeds

Big Chief Uranium Co., Pueblo, Colo.;
Sept. 20 (letter of notification) 1,500,000 shapes of non¬
assessable common stock (par 10 cents). Prfire^-20 cents

—$11 per unit. Proceeds—For construction of hotel and
related activities and for contingencies, stock in trade,

Fund

be

N. Y.

Aug. 8 filed 900,000 shares of common stock (par $1)
and 900,000 shares of preterred stock (par $10) to be
offered in units of one share of each class of stock. Price

and working capital.

Tool

Corp.
Sept. 7 (letter of notification) 20,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—To set
up a factory and purchase equipment and machinery for
manufacture
and sale of! the "grip-lock" driver and
screw.
Office—137 Grand St., New York, N. Y. Under¬
writer—Ellis-Greenberg Co., 1051 Carroll St., Brooklyn,

Inc., Tulsa, Okla.

stocks (par

cent).

one

Price—Three

cents

share.

per-

Proceeds—For

mining expenses, etc.
Office—2630 South
2nd West, Salt Lake City,- Utah.
Underwriter—Deaver

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. Statement effective Dec. 7.

Securities, Inc:, • Denver, Colo..

*

;

>•

—

ment.

it Applied
Dec. 6

Research

Laboratories,

Glendale,

Calif.

(letter of notification) 1,576 shares of capital stock,

(par $1) and 71 shares of class B stock (par $1) to be
issued pursuant to stock options. Price—$8.55 per share.
Proceeds—For working

Glendale, Calif.

capital. Office—3717 Park Place,
Underwriter—None.

-

Citizens Credit Corp.,

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.,

2,450 shares of class A
B

common

capital to

Mid-America Securities,
:
;

—

N.

common and

notification) 921 shares of capital stock

shares of class B stock to be issued pursuant to

and 82

stock options at $7.96 per

share, and 247 shares of class B
cash price of $7.60 per share.
Underwriter—None.

stock to be offered at the

Proceeds—For working capital.

B-Thrifty, Inc., Miami, Fla.
Nov. 23 filed 37,000 shares of-class A common stock (par
$25). Price-r-$"38 per share. Proceeds—To open addi¬
tional retail stores. .? Business — Supermarket concern.
Office—5301 Northwest 37th Ave., Miami, Fla.
Under¬
writer—Nbne.
.*//•../
•

it Argyie Mining & Milling Corp., Silverton, Colo.
6 (letter of notification) 30,300 shares of common
(par $1) and 1,047 shares of preferred stock (par
$100), of which 8,250 shares of common stock are to be
offered to Imperial Mining Corp., and 22,050 common
shares and the 1,047 shares of preferred stock to Pride
Mill, Inc. Price—Of preferred, at par; and of common,
Dec.

stock

at not less than $2 or more than $5 per share.
—For

working capital.

Arizona

Public

stock.

W., Washington, D. C.
& Co., same address.

Phoenix,

Ind.
urer,

Canuba Manganese

Oct.

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
cents per share. Proceeds—For working capital. Under¬

writer—None, sales to be directly by the

company or

by

salesman of the insurance firm.

Assateague Island Bridge Corp. (Md.)
Oct. 7 filed 100,000 shares of 5% cumulative preferred
stock to be offered primarily to members of the Ocean
Beach Club, Inc.* 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—

held

Underwriter—Emory S. War¬

common

Mines, Ltd.

>

filed

27

500,000 shares of capital stock (par
Price—$1.50 per share. Proceeds—For

Underwriter

Nov.

corporate

Office—701

purposes.

®

cent).

Atlas

Industries, Inc., Houston, Texas
(letter of notification) 200,000 shares of com¬
mon stock (par one cent).
Price—$1.50 per share. Pro¬
ceeds—To purchase dies and materials and for
working
10

capital, etc. Office — 6006 Harvey Wilson Drive, Hous¬
ton, Texas. Underwriter — Benjamin & Co., Houston,
Texas.
Atlas Plywood Corp., Boston, Mass.
14 filed 100,000 shares of common stock

Nov.

(par $1)
to be offered in exchange for the outstanding
291,431
shares cf 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
at least an additional 133,809 shares in order to

bring its

holdings of such stock to 80%.

2

Cascade
18

Natural

filed

Gas Corp.

$3,589,450

of

(12/21)

5lk %

interim

notes,

due

Oct. 31, 1960, and 71,789 shares of common stock (par
$1), to be offered first to common stockholders of record
Dec.

in units

9

of

rights to expire
amendment.
repay

$50 of notes and

on

Jan.

4.
new

one

Price—To

Proceeds—Together

bank loan and for

with

share of stock;

be

supplied by
other funds, to

construction.

Underwriters

—White, Weld &

Co., New York; First California Co.,
San Francisco, Calif., and Blanchett, Hinton &
Jones,
Inc., Seattle, Wash.
Century Acceptance Corp., Kansas City, Mo.
7 filed $750,000 of participating
junior subordi¬
nated 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).
(in units of $500 each).' Proceeds—For
working capital, etc. Underwriter—Paul C. Kimball &
Co., Chicago, 111.
common

Price—At 100%

Chaffin Uranium Corp., Salt Lake
City, Utah
Sept. 6 (letter of notification) 12,500,000 shares of non¬
assessable capital stock.
Price—At par (one cent per
share).

Proceeds

activities.

Boston

Pittsburgh

Chicago

Utah.
•

Philadelphia
I

San Francisco

Private JVires




to

all offices

Cleveland

expenses

incident

to

mining

Building, Salt Lake City,
Underwriter—Utah Securities Co., same City.

18

Oil

filed

cumulative
and

For

Office—810 Deseret

Channel

Oct.

—

Co., Las Vegas, Nev.
amendment) 435,000

(by

preferred stock

870,000 shares of

(callable at

common

for

stock

each

share

-

~

per

2,575 shares of common
share.: Proceeds—For new ma¬
1

•

V'

.

per

development

-

one

share. Proceeds—For explora¬
and ior general corpo¬

expenses

Office—Montrose, Colo." Underwriters—
Corp., New York; and Shaiman & Co.,
>
: ' ••
.

(letter

stock

(par

.

Corp., Washington, D. C.

of notification)
one

cent).

700,000 shares of com¬
Price—Five cents per share.
Office—501 Perpetual

Proceeds—For mining operations.

Bldg., Washington 4, D. C. Underwriters—Mid America
Securities, Inc., Salt Lake City,* Utah;' and- Seaboard
Securities Corp., Washington, D. C.
/
,

Nov.

New York.

purposes.

Aug. 20

Casualty Insurance Co., Burlington, N. C.
(letter of notification) 30,000 shares of class B
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.
•

share

new

notification)

Comet Uranium

Underwriter—To be named.

Nov.

of

Price—40 cents

Denver, Colo.

Ranch

common

:

General Investing

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,

Nov.

one

Uranium, Inc. (2/1)
filed 2.500,000 shares of common stock (par

rate

Monroe

Carolina

.

Underwriter—Spencer, Zimmerman & Co.,

and

mon

Caribou

.

Colohoma

Nov. 9

Underwriter—None.

St., Hoboken, N. J.

of

Inc., Columbus, Ga.

None.

Oct.

(letter

Price—$10

tion

general

basis

Engineering Corp.

chinery, etc.

'

$1ex¬

it Caramba Mokafe Corp. of America
r
Dec. 8 (letter of notification) 125,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For
equipment, inventories and working capital and

etc.

the

on

9

stock.

New York.

other

•

•

.

Office—Toronto,
Baruch Brothers & Co., Inc.,

—

- ;

-

of Dec.- 5, 1955.

as

Cole

ploration of mining properties in Cuba.
Canada.

;

Price—$3 per share. Proceeds—
To finance principally the purchase of instalment con¬
tracts from Clary Corp. /Office—408 Junipero
St., San
Gabriel, Calif. Underwriter—None.
Vr
i

Price—$25 per share.
Proceeds—For oil de¬
Office—115V2 So. Detroit St., La Grange,
Underwriter—Richard C. Barber, Secretary-Treas¬
Box 154 Milford, Ind.

Canadian).

Co.,

holders

velopment.

Proceeds

Underwriter—None.

Finance

it Calian& Oil Corp., La Grange, Ind.
'Dec.""7 (letter of notification) 3,000 shares of

shares of clasi

it Clary Sales r& Supply Corp., San Gabriel, Calif.
Dec, 7 (letter of notification) 51,167 shares of
capital
stock (par $l)-to be offered for
subscription by stock¬

,

..

490

stock).
Price—99%;: Proceeds—To supply
subsidiaries. Office—1028 Connecticut Ave.,

ren

Dec. 6 (letter of

-

Sept. 27 (letter of notification) $245,000 of 6% "subordi¬
nated debentures due 1975 (with1 warrants to purchase

Bonus

Denver, Colo. Underwriter
Inc., Salt Lake City, Utah.

Washington, D. C.

.

Consumer

.

Acceptance Corp.
Nov. 10 (letter of notification) $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. Underwriter*
—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.'
Cook Industries,

Inc., Dallas, Texas

.

Aug. 1 (letter of notification)

199,999 shares of common
stock (par $1), of which 107,915 shares
are to be sold
by company and 92,034 shares by a selling stockholder.
Price—$1.50 per share. Proceeds—For general corporate
purposes.

Underwriter—Central Securities Co.,

Texas.

Dallas,

,

Corpus Christi Refining Co.
Sept. 2 filed 500,000 shares of common stock (par 10
cents). Price—At the market. .Proceeds—To a selling
stockholder.

Office—Corpus Christi, Texas. Underwriter

—None.
1 Credit Finance

Corp., La Grange, Ga.

Oct. 28 (letter of notification) 148,000 shares of common
stock (par $1). Price — $2 per share. Proceeds — For;

working capital. Office—Mailory-Hutehinson Bldg., La
Grange, Ga. Underwriter—Franklin Securities Co., At-'
lanta, Ga.
Cross-Bow Uranium Corp.
Aug. 29 (letter of notification) 5,000,000 shares of commbn stock.
Price—At par (six cents per share). Pro¬
ceeds
For mining operations. Office — 1026 Kearns
—

shares

$20

of

per

$1.20
share)

(par 10 -cents)

to

Bldg., Salt Lake City, Utah. Underwriters—Potter In¬
vestment Co., and Mid-America Securities, both of Salt
Lake

City, Utah.

•

.<•

;

*«•

Volume

»•

Cuba

Nov.

(Republic of)

21

Public

Number 5490

182

filed

bonds

The Commercial and Financial Chronicle

.

(12/19-22)

$2,000,000

Works

.

.

.

4%

ol

due

1983.

Courts

Price—To

be

and

supplied

amendment.
Proceeds — To Romenpower Electra
Construction Co. Underwriter—Allen & Co., New York.

Cubana Mobile Hemes, Inc., Cuba, N.
Dec. 8
(letter of notification) 750 shares

1,000

Y.
of

-

common

shares

facturing facilities, buy equipment

and inventory and
Office—c/o Edmund J. Rouse,
President, 84 Schuyler St., Belmont, N. Y. Underwii.er

for work in

process.

None.
Minerals Co.,

(letter of notification) 600,000 shares of non¬
assessable common stock (par five cents). Price—50 cents
per share. Proceeds—Expenses incident to mining oper¬
Office—223

City and County Bldg., Casper, Wyo.
Underwriter—The Western Trader & Investor, Salt Lake
City, Utah.

it Dennis Run Corp., Oil City, Pa/
(letter of notification) 46,000 shares of

Nov. 28

pay

common

(par $1). Price—$6.50 per share.
Proceeds—To
bank loans and debts; and for working capital.

Office—40 National Transit Bldg., Oil City, Pa.
writer—Grover O'Neill & Co., New York.
Dinosaur Uranium Corp., Salt Lake

Under¬

Micro-Ledger Accounting Corp.
(letter of notification) 297,000 shares of com¬
(par 10 cents), to be offered for subscription
by stockholders.
Price—$1 per share.
Proceeds—For
general corporate purposes. Office—53 State St., Boston,

City, Utah

Aug. 15 (letter of notification) 15,000,090 shares of com¬
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.
Dix Uranium Corp., Provo, Utah
assessable capital stock.

[share).
North

Price—At

Proceeds—For

mining

non¬

(five cents per
Office—290

par

expenses.

University

Ave., Provo, Utah.
Weber Investment Co., Provo, Utah.

Underwriter

of each class of stock.

Price—$10.10 per unit. Proceeds—
option, which expires on Dec. 4, 1955,
to acquire certain properties of the
Brooklyn Eagle,
'Inc.; and for working capital. Office—Brooklyn, N. Y.
an

James

Anthony Securities Corp.. New
Offering—Not Expected until after Jan. 1, 1956.

York.

—

Eagle Rock Uranium Co., Salt Lake City, Utah
Sept. 19 (letter of notification) 30,000,000 shares of non¬
assessable

stock.

common

Price—At

share).

(one cent per
incident to mining
par

Proceeds — For expenses
activities.
Office—214 East 5th South, Salt

Utah.

Lake

City,

Underwriter—Valley State Brokerage, Inc., Las

Vegas, Nev.
East Basin Oil &

Oct. 25
'

mon

25,000 shares of

Franklin

Railway Supply Co.
(letter of notification) 20,000 shares of common
stock (no par) to be offered for
subscription by stock¬
Oct.

Office—322 State St., Santa Barbara, Calif.

unit.

.

•

Uranium Co.

(letter of notification) 1,500,000 shares of com(par one cent). Price—20 cents per share.

stock

Freedom

Insurance Co.

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.

Office—Berkeley,
Incorporated, New

Calif.

Underwriter

York.

Co.,

Statement has been withdrawn.

—

Blair

&

Co.

1

also

issued

be

to

dividends.

values.

in

Fremont Uranium

Co., Salt Lake City, Utah
Aug. 1 (letter of notification) 15,000,000 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining expenses. Office—515 Deseret
Bldg.,
Salt Lake City, Utah. Underwriter — Moab
Brokerage
Co., Western States Investment Co., Potter Investment

policyholders of the Farm & Home
exchange for the assignment of their

Co.

insurance

Price

At

—

their

Proceeds—For working capital.
McNelis and John J. Rhodes.

respective

Co.,' Mid-America Securities, Inc. of Utah, and CashinEmery, Inc., all of Salt Lake City, Utah.

par

Frontier Assurance

Underwriters-

Co., Phoenix, Ariz.
notification) 2,000 shares of class B
voting common stock (par $25), to be offered for sub¬
scription by holders of class A common stock. Price—
•$36.50 per share. Proceeds — For capital and surplus.
Office—4143 N 19th Ave., Phoenix, Ariz. Underwriter—

James E.

Dec.

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
Union subsidiaries; to retire
outstanding indebtedness;
writer—None.
and

the

Debentures to be sold by

agents, and by officers, directors and employees
which is often referred to as National

(letter

of

it Gary-Elliot Salons, Inc.
9 (letter of notification) 80,000 shares of

Dec.

stock

(par $1).

Price—$3.75

per

share.

common

Proceeds—For

establishment of

salesmen, deal¬

Union,

2

None.

and to expand the Union's educational activities. Under¬

new Gary-Elliot Salons and for
operat¬
working capital. Office — 1211 Chestnut St.,
Philadelphia, Pa. Underwriter—Keystone Securities Co.,
Inc., same city.

ing

-

and

Farmers Union.
Gas Hills

it Federal Oil Co., Newark, N. J. (12/29)
Dec. 6 (letter of notification) 99,900 shares of
stock

(par $1).
working capital

Price—$3

share.

per

Mining & Oil, Inc., Kemmerer, Wyo.
(letter of notification) 1,000,000 shares of capi¬
(par five cents). Price — 25 cents per share.

Aug. 1
common

Proceeds—For

and

subsequently to defray cost of
acquisition of Economy Service, Inc. Office—415 Ray¬
mond Blvd.,
Newark, N. J. Underwriter—S. D. Fuller
& Co., New York.

tal

stock

Proceeds—For oil and mining expenses.

it Financial Security

Proceeds—For expenses incident to

Dec. 5
stock

Life

Insurance

(letter of notification)
(par $1)

preemptive

rights.

Co.,

Ltd.

139,606 shares of

to be offered

first

Price—$1.50

to

per

common

'

General

Oct.

3

Capital Corp.
of notification)

(letter

$300,000 of 10 year 8%
(in denominations of $100,
$500, $1,000 and $5,000). Proceeds — For purchase of
commercial paper.
Office—4309 N. W. 36st St., Miami
Price—At

stockholders under

Springs, Fla.

share.

Proceeds—

Underwriter-

Empire Securities Corp., Las Vegas, Nev.

debentures.

gas.

drilling for oil and
Office—Colorado Bldg., Denver, Colo. Underwriter
—Philip Gordon & Co., Inc., New York.

reduce

June 6 filed

Phoenix, Ariz.
filed 240,000 shares of class A
(voting) common
stock (par $25 cents); 214,285 shares of class B
(voting)
common stock (par 35
cents); and 300,000 shares of class
C (non-voting) common stock
(par 50 cents). Of these
shares, 40,000 are to be offered to officers, directors and
employees of the company. Class A, B and C stock will

of

Proceeds—To

But C. W. Floyd Coffin and Herman F. Ball have
agreed
to purchase all shares not subscribed for
by stockholders.

Proceeds—For

Farm & Home Loan & Discount

ers

share.

per

working capital. Office—
Wilmington, Del. Underwriter—None,

inventory, equip¬
ment and working capital. Office—203
Bridger St., Las
Vegas, Nev.
Underwriter—Edith B. Gates, Las Vegas,
Nevada.

Price—$10

unsecured bank loans and for
927 Market St.,

to be offered in units of four shares of each class of stock.

per

19

holders.

it Fabulous Fashions From Las Vegas, Inc.
Dec. 6 (letter of
notification) 70,000 shares of 6% nonparticipating class A preferred capital stock (par $3.50)
and 70,000 shares of class B common stock
(par 25 cents)
Price—$15

Proceeds—For working

"Totosave"

common

(par $l).rPrice—$4 per share. Proceeds—For pur¬
chase of additional machine tools and to increase work¬

-

.

(letter of notification)

stock

Farmer's

Newspaper Enterprises, Inc.
Oct. 19 filed 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

Underwriter

of

—

Eagle

exercise

Price—$3 per
capital; for exploitation
system; and for marketing of "TropicRay" infra-red space heater. Office — Pittsburgh, Pa.
Underwriter—Barrett Herrick & Co., Inc., New York.

share.

Underwriter—None.

Insurance

Aug. 10 (letter of notification) 6,000,000 shares of

,

Packaging International, Inc.

50,000 shares of five selling stockholders.

it Electronic Products Corp., Santa Barbara, Calif.
7

Office—275 North Main St., Moab,

June 30 filed 300,000 shares of common stock
(par 100),
of which 250,000 shares of for account of
company and

stock

Dec.

mon

To

Electronic

Dec.

expenses.

Underwriter—None.

Fort Pitt

Sept. 28

Mass.

mining

Utah.

Underwriter—None.

Casper, Wyo.

Sept. 20

ations.

For

143

.

ing capital.

Delta

.stock

Funds are to be held in escrow (if
enough is received, funds will be returned to pur¬
stock). ■ "
-•

not

chasers of

mon

of first preferred stock and 750
shares of second preferred stock.
Price—At par ($100
per share).
Proceeds—To purchase a site, erect manu¬
pay

(2667)

officers of company.

Veterans,

by

stock,

nVW^^iiiW^V'^VkaWki

par

Underwriter—None.

1 Oct. 14 filed 6,000 shares of class A common stock/Price
*—At par ($100 per share). Proceeds—To acquire title
! to shopping center in Lansing, Mich., from builder of

St., Honolulu, Hawaii.

^-Fireball Uranium Mines, Inc., Moab, Utah
Dec. 7 (letter of notification)
225,000 shares of common

it General Electronics Distributors, Inc.
Dec. 7 (letter of
notification) 2,000 shares of common
stock (par $25).
Price—$37 per share.
Proceeds—To
increase working capital and inventories, reduce current
borrowings and for other corporate purposes.
Office—

[ center/ Underwriter—None, offering to be made through

stock.

735

'

Edgemont Shopping Center, Inc., Chicago, III.

NEW

ISSUE

For

capital

and

surplus.

Price—At

par

Office—864

South

Beretania

Underwriter—None.

(20

cents

per

share).

Proceeds—

Main

CALENDAR

shares
December

Southern

Pacific

15

Co

(Bids

(Thursday)
Equip. Trust Ctfs.

:
EST)

noon

McLean Industries, Inc

\

$9,GOO,000

.^
'

'

V

December 16
-

Southwestern

States

Co.

Inc.)

Weld

(Offering

to

stockholders—to

be

January

103,000 S-.ares

underwritten

Cuba

(Reynolds & Co.) $6,000,000

Industrial

Plywood

Bonds

&

Co.)

$2,000,000

'

Inc..

Common

and Weill, Blauner
$300,000

December 20

&

Co.,

(Bids

400,000 shares

(Tuesday)

Notes & Common

of

December 27

&

be

to

be

$20,700,000

Preferred

January 18

(Offering

$400,000

Weld

&

Co.)

Common

to stockholders—may be underwritten
Blyth & Co., Inc.) 100,000 shares

by

Zapata Petroleum Corp
(G

H.

Walker

December
Federal

Co.)

29

120,030

shares

D.

Fuller &

to

Webster

Securities

Maine Fidelity Life

be

Corp.)

Common
invited)

about

$15,000,000

(Wednesday)

Colohoma Uranium, Inc
(General

Common

Investing Corp.)

February 15
Dallas Power &

Common
underwritten

1,652,176

by Stone
shares

Insurance Co

(P. W. Brooks & Co., Inc.) $1,000,000




be

February 1

(Wednesday)

stockholders—to

Co
to

of their annual policy premium. Price
share. Proceeds—For working capital, etc.
—

None.

Some

of

the

stock

will

also

be

and

Law

L.

Pound, President;
Lovelace, Secretary-Treasurer.

it Green Bay Drop Forge Co.
Dec. 8 (letter of notification) $200,000 of 5% first mort¬
gage serial bonds, due Dec. 1, 1961.
Price—At par and
accrued interest.
Proceeds—For general corporate pur¬
Office—1341 State St., Green Bay, Wis.

Under¬

writer—None.

$1,000,000

it Group Securities, Inc., Jersey City, N. J.
13 filed 1,000,000 additional shares of capital stock
(par one cent). Price—At market. Proceeds—For in¬

(Bids

(Wednesday)

Light Cq.
to

be

Bonds

invited) $10,000,000

&

Common

February 28
Service Co

(Tuesday)

Texas Electric

(Bids to be invited)

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

Bonds
$10,000,000

vestment.
Gulf Coast

$299,700

General Public Service Corp
(Offering

Utilities

(Tuesday)

Co.,

Dec.

(Thursday)
Co.)

Texas

(Bids

'

Common

January 4
-

.Common

&

Oil Co
(S.

January 31

(Wednesday)

Insurance

Ariz.

offered to public through Kenneth K.

poses.

December 28

.

refund

per

Underwriter

Class A Common

White,

com¬

Underwriter—Stone & Webster Secu¬

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

—$1.60

(Wednesday)

Fenner & Beane; and
6,952,293 shares

Pierce,

Proceeds—To add investments in the

Georesearch, Inc. (12/20-22)
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.

dividend

$8,000,000

Ford Motor Co

(warrants are expected to be mailed
that date).
Price—To be supplied by

rities Corp., New York.

Phoenix,

Co
invited)

on

Great Southwest Fire

Bonds

invited)

held

pany's portfolio.

(Tuesday)

Seattle-First National Bank

Common
Inc.)

(Bids

Lynch,

(Tuesday)

Otis,

Preferred

$6,000,000

(Blyth & Co., Inc.; The First Boston Corp.; Goldman, Sachs
&
Co.;
Kuhn,
Loeb
&
Co.;
Lehman
Brothers;
Merrill

stock.

International Metals Corp
(Gearhart

to

Pennsylvania Electric

^

(White, Weld & Co.; First California Co. and Blanchett,
Hinton
&
Jones,
Inc.), $3,589,450 notes and
71,789
shares

(Bids 11:30 a.m. EST)

Pennsylvania Electric Co

[
Common

Cascade Natural Gas Corp

(Wednesday)

Service Inc

Inc.)

(Tuesday)

December 21

11

January 17

1

Corp

(Bear, Stearns & Co. and Keith, Reed & Co. Inc.)

I

January

"

New Orleans Public

Co.,

(Standard Securities Corp.

Georesearch

Preferred

(Monday)

(Republic of)—..
(Allen

■..

19

Underwriter—None.

•

Magnavox Co.
December

Morgan

(Thursday)

5

then

to stockholders

amendment.

by

213,845 shares

Stanley & Co.)

Common

Co

.Common

i

240,000 shares

& Co.)

Outboard, Marine & Manufacturing Co.__-Common

(Friday)

Telephone

(Central Republic

(White,

St., Wheeling, W. Va.

it General Public Service Corp. (1/4)
Dec. 12 filed 1,652,176 shares of common stock (par 100)
to be offered for subscription by stockholders of record
Jan. 4, 1956, at the rate of one new share for each two

oil and gas

interests.

Underwriter—None.
Continued

on

page

144

144

The Commercial and Financial Chronicle

(2668)

Continued from page
*

Office—c/o Warren E. Morgan, President, 1705 East First

Uranium Corp., Ogden,

Half Moon

Utah

Aug. 10 (letter of notification) 8,000,000 shares
ttock.
Price—At par (two cents per share).

of capital

Shreveport, La.
Sept. 26 filed 100,000 shares of common stock (par 25
cents) to be offered for subscription by present stock¬

★ Mio Dio

Corp., Ogden, Utah.

Mass.
Nov. 3 (letter of notification) 24,000 shares of common
stock. Price—$5 per share.
Proceeds—For administra¬
tive and engineering expenses.
Office — Metropolitan
Airport, Canton (Norwood P. O.), Mass. Underwriter—
Aircraft Corp., Canton,

City, Utah
$300,000 of 25-year 6%
junior subordinated debentures due Oct. 1, 1980. Price—
At par (in denominations of $1,000, $500 and $100). Pro¬
ceeds—For working capital.
Offiee—837 South Maine
St., Salt Lake City, Utah. Underwriter—Edward L. BurAcceptance Corp., Salt Lake

Home

ten &

(letter of notification)

Co., same city.
Uranium

Hunt

River, Utah

Corp., Green

Aug. 22 (letter of notification) 1,200,000 shares of com¬
stock.
Price—At par (25 cents per share). Pro¬
K.

Elmer

Salt Lake City,

Utah.

Denver, Colo.

basis of one new
expire 45 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
—For expansion and working capital.
Underwriter—
None.

>'

Insurance Co. of Georgia

Lincoln Life

(letter of notification) 6,800 shares of common
— $44 per share.
Proceeds — For
working capital. Office—408 Marion Bldg., Augusta, Ga.
Underwriter—Sellers, Doe & Bonham Co., same city.

Nov. 29

stock

(par $5). Price

Developments, Inc., Cleveland, Ohio
600,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For exploration
and development costs, etc. Underwriter—George SeaLithium

Oct.

filed

17

Mobile

Mac

Little

Mohawk

Silica Co., Cincinnati, Ohio
(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,
Oct. 3

Ohio.

Underwriter

Nov.

Co.

Hydro-Loc, Inc., Seattle, Wash.
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.

Investors,

Mortgage

Washington,

d. c.

Office—1012 H St., N. W., Washington, D. C.
Underwriter—Federal Investment Co., same city.

portfolio.

Vernon

Mining & Development Co.
(letter of -notification) 300,000 shares of

16

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.
—

Building, Reno, Nev. Underwriter
—Richard L. Dineley, same address.
Office—205 Byington

•

Industrial

Nov.

30

Plywood Co., Inc.

(letter of notification)

(12/19)
100,000 shares of com¬

stock

(par 25 cents) (with stock purchase warrants
attached entitling purchasers of each five shares to buy

mon

additional share of stock at $5 per share).

Price—$3
per share. Proceeds—To liquidate loans and for general
corporate purposes. Business—Purchases and sells ply¬
wood and laminated plastics. Office—168 Blanchard St.,
Newark, N. J. Underwriters — Standard Securities Corp.
and Weill, Blauner & Co., Inc., both of New York.

cne

Insulated

Circuits, Inc., Belleville, N. J.
Nov. 10 filed 100,000 shares of 6% cumulative convert¬
ible preferred stock (par $5). Price—To be supplied by
amendment. Proceeds—For general corporate purposes.
Underwriter—Alexander Watt & Co., Ltd., New York.
International Investors Inc., New York
Aug. 23 filed 200,000 shares of capital stock
Price—At market.

(par $1).

Proceeds—For investment.

Business

invest in foreign securities of the free world out¬
side of the United States. Underwriter—I. I. I. Securi¬

—To

ties
•

Corp., 76 Beaver St., New York, N. Y.

International

Oct.

4

cents).

Metals

Corp.

(12/27-29)

filed

400,000 shares of common stock (par 10
Price—$1 per share. Proceeds—To finance ex¬

ploration and development of mining properties of Recursos
Mineros Mexicanos, S. A., Mexican subsidiary,
and to discharge note. Office — Houston, Tex. Under¬
writer—Gearhart & Otis, Inc., New York.
International

Plastic Industries Corp.
notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
•For advances to Arliss Co., Inc. for purchase of equip¬
ment, etc. Office — 369-375 DeKalb Ave., Brooklyn 5,

Oct. 12 (letter of

N. Y.

Underwriter—Kamen &

Israel

Industrial

York, N.

"Isras"

Y.

&

Co., New York.

Mineral

v

Israel-Rassco

Investment

Co., Ltd.
Sept. 28 filed 9,000 ordinary shares. Price—At par (100
Israel pounds each, or about $55 in U. S. funds), payable
in State of Israel Independence Issue Bonds only. Office
—Tel Aviv, Israel.
Underwriter — Rassco Israel Corp.,
New York.

Inc., Cortez, Colo.
Aug. 26 (letter of notification) 2,855,000 shares of
assessable

Colo.

stock (par one cent). Price—10 centi
Proceeds—For expenses incident to mininf
326 West Montezuma St., Cortez.

Office

—

Underwriter

—

Bay Securities Corp., New York

(letter of notification) 3,000,000 shares of non¬
assessable capital stock (par one cent). Price—10 cents
per share.
Proceeds—For expenses incident to mining
operations. Office — Simms Bldg., Albuquerque, N. M.
Underwriter—Mid-America Securities Inc. of Utah, Salt

Electronics

Co., Inc.
Oct. 27 (letter of notification) 60,000 shares of common
rtock (par 10 cents). Price—40 cents per share. Proceeds
—To Nicholas J. Papadakos, the selling stockholder. Of¬
fice—129 Pierrepont St., Brooklyn, N. Y. Underwriter—
20th Century Pioneer Securities Co., New York.
Lander Valley

-f

Uranium & Oil Corp.
Aug. 15 (letter of notification) 3,000,000 shares of common stock
(par two cents).
Price—10 cents per share.
Proceeds—For expenses incident to mining activities.




Utah.

—

Co., New York.
Maine

Fidelity Life Insurance Co.

per

share).

Offiee—422

Co.,

Proceeds—

Continental
—

Continental

701

Mercury Corp., Denver, Colo.

For mining expenses; Office — 414 Colorado
Bldg.,
Denver, Colo. Underwriter—Shaiman & Co., same city.

—

•

National Old Line Insurance Co.
15

filed

(par $2)

50,000

shares

of

class

A

50,000 shares of class B common stock
(par $2).
Price—To be supplied by amendment. Pro¬
ceeds
To selling stockholders. Office — Little
Rock,
—

Ark.

Underwriter—Equitable Securities Corp., Nash¬
ville, Tenn., and New York, N. Y. Offering—Expected
momentarily.
Natural Power

Corp. of America, Moab, Utah

Brooks &

tivities. Underwriter—Western Bond & Share

Mercury Corp., Denver, Colo.
Oct. 26 (letter of notification) 1,500,000 shares of com¬
mon stock (par one cent), of which 1,400,000 shares are
for account of company and 100,000 shares for certain
stockholders. Price—20 cents per share. Proceeds—For
mining expenses. Office—374 Denver Club Bldg., Den¬
ver, Colo. Underwriters—General Investing Corp., New
York; and Investment Service Co., Denver, Colo.
Mansfield

Telephone Co., Mansfield, Ohio
Nov. 4 (letter of notification) 6,000 shares of 5% pre¬
ferred stock.
Price—At par ($50 per share). Proceeds
—To reduce short term indebtedness and for construction

Office—35 Park Avenue East, Mansfield, Ohio.

program.

Marl-Gro, Inc., San Francisco, Calif.
Oct. 6 (letter of notification) 172,500 shares of common
stock (par 10 cents). Price—$1 per share.
Proceeds—
For mining expenses and expenses incident to selling
soil

conditioner.

Office—681 Market St., San Fran¬
Underwriter—Globe Securities Corp., New

cisco, Calif.

notification) 300,000 shares of non¬
stock (par one cent). Price—$1 per
Proceeds—For expenses incident to mining ac¬

share.

common

York.

Co., Tulsa,

Okla.
Nevada Mercury Corp., Winnemucpa, Nev.
Sept. 16 (letter of notification) 1,500,000 shares of
mon

stock

(par

Proceeds—For

cent).

one

Price—20 cents

per

com¬

share.

incident to mining activities.
Building, Winnemucca, Nev. Un¬
derwriter—Shelley, Roberts & Co., Denver, Colo.
> ;
;
expenses

Office—Professional

★ New Idea Marketers, Inc.
Dec. 5 (letter of notification) 300,000 shares of 8% cumu¬
lative preferred stock.
Price—At par ($1 per share).
Proceeds —For

working capital.
Offices — 900 Market
St., Wilmington, Del., and 42 North Lotus St., Pasadena,
Calif.

Underwriter—None.

New Orleans

Corp.
Oct. 18 (letter of notification) 300,000 shares of class A
common 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.,
same city.

a

(letter of

7

assessable

Underwriter—None.

Manufacturers Cutter

stock,

common

and

Sept.

Manhattan

Bank

Ackerson-

Bank: Bldg.,

40,000 shares of capital stock (par $10).
Price—$25 per share. Proceeds—For general corporate
purposes.
Office — Portland, Me. Underwriter—P. W.

Co., Inc., New York.

'

Oct. 24 (letter of notification) 750,000 shares of common
stock (par one cent). Price—40 cents per share. Proceeds

(1/4)

filed

10

Investment

($1

par

expenses.

/

com¬

city.

Nov.

Magnavox Co. (1/5-12)
Dec. 9 filed 120,000 shares of cumulative convertible
preferred stock (par $50). Price—To be supplied by
amendment.
Proceeds
For larger inventories and
additional working capital. Underwriter — Reynolds &

Nov.

Price—At

National

Uranium & Oil Co.

6

Public

Service

Inc.

Dec. 2 filed 60,000 shares of cumulative

(1/11)
preferred stock

(par $100). Proceeds—For construction program. Under¬
writer
To be determined
by competitive bidding.
Probable
bidders:
W.
C.
Langley &
Co.; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane; White,
Weld
& Co.;
Kidder, Pea'oody & Co. and Stone &
—

Webster Securities Corp.
(jointly); The First Boston
Corp.; Equitable Securities Corp. and Union Securities
Corp. (jointly); Blair & Co. Incorporated.
Bids—Ex¬

pected to be received up to 11:30 a.m. (EST) on Jan. 11.
North Shore Gas Co., Salem, Mass.
10 (letter of notification) 1,289 shares

Nov.

stock

of

common

(par $10) being offered for subscription by minor¬

ity stockholders at rate of

Mines, Inc.
Aug. 1 (letter of notification) 300,000 shares of common
stock
(par 35 cents).
Price — 62% cents per share.
Proceeds
For expenses incident to mining activities.
Underwriter—Standard Securities Corp., Spokane, Wash,

shares held

-j/t McLean Industries, Inc.

one

new

share for each five

Dec. 9 filed

Mascot

—

9

filed

(1/4)

240,000 shares of

common

stock

(par

one

cent).

Price—To be supplied by amendment. Proceeds
■—$583,000 to exercise an option to repurchase 210,000
shares of its common stock; and to assist in the fi¬

nancing of

a

proposed trailership construction program

to

be undertaken by Pan-Atlantic Steamship
Corp., a
subsidiary. Underwriter—White, Weld & Co., New York.

Metro, Inc., Baltimore, Md.
(letter of notification) 5,000 shares of common
(par $1). Price—$10 per share. Proceeds^-To Karl
R. Kahn, President of the company.
Office
808 E.
Fayette St., Baltimore, Md. Underwriter—Auchinclossj
Nov. 30
stock

Mexico
Oct.

19

Washington, D. C.

Refractories

Co.,

to

open

for 60

Mexico, Mo.

days from Nov.

17,

1955.

Offer is conditioned upon Mexico owning at least 80%
of outstanding National stock
upon
consummation of

exchange.
•

10 filed

Price—$3
purposes.

* Northeast Investors Trust, Boston, Mass.
(by amendment) an additional 50,000 shares
of

Beneficial

Interest

in

the

Trust.

Price—At

market.

Proceeds—For investment.
Norwood

Uranium, Inc., Norwood, Colo.
(letter of notification) 6,000,000 shares of com¬
stock (par one cent).
Price—Five cents per share.

Oct. 21
mon

Proceeds—For mining expenses. Underwriter—Columbia
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).
chase

of investments

and

property interests in both oil

and gas and nuclear situations.

will

be

made

Underwriter—None; but

through

licensed

dealers.

of the Board and J.

Jack

Cullen

Looney of Edinburg, Texas, is President.
Oak Mineral

& Oil

Corp., Farmingion, N. M.
2,000,000 shares of common
(par five cents). Price—15 cents per share.* Pro¬
ceeds—For exploration and development and other
gen¬
Nov. 8 (letter of notification)

stock

eral corporate purposes.

Co.,

New

Underwriter—Philip Gordon &

York.

,

Mid-Union

Nov.

Nov.

—None.

offering

filed

remain

of

28; rights to expire on Dec. 19.
Price—$14 per share. Proceeds—To repay advances from
New England Electric System, the parent. Underwriter
as

Frost of Dallas is Chairman

57,776 shares of common stock (par $5)
being 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

New York.
Kendon

mining

same

Lost Canyon
Oct.

non¬

common

share.

activities.

Underwriter—Skyline Securities, Inc.,

Parker & Rsdpath,

Jurassic Minerals,

per

stock.

For

Hackett

City, Utah.

Denver, Colo.

Dec.

Development Corp.
Oct. 5 filed 200,000 shares of common stock (par $25)
Price—$27.50 per share. Proceeds—For general corpo¬
rate purposes.
Underwriter — Israel Securities Corp.,
New

mon

Bldg., Salt Lake City, Utah. Underwriter

•

Uranium

Monument

Indian

Co., Cincinnati,

Sept. 12 (letter of notification) 3,000,000 shares of capi¬
tal stock. Price—At par (10 cents per share). Proceeds
mining expenses. Office—440 West 3rd North, Sail

—For

Lake City,

$233,000 of 8% registered
debentures, due Jan. 1, 1976, and 58,250 shares of com¬
mon
stock (par $1) to be offered in units of one $100
debenture and 25 shares of stock.
Price—$125 per unit.
Pieceeds—To be invested in the mortgage investment
(letter of notification)

Dec. 7

W. E. Hutton &

—

Ohio.
ML

Uranium

Underwriter—None.

Uranium

& Oil Co., Salt Lake City, Utah
Aug. 22 (letter of notification) 5,500,000 shares of non¬
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. Underwriter—Skyline Securities, Inc., Den¬
ver, Colo.

right, New York City.

Oct.

• Incorporated

;;;

Lake

incident to mining activities. Un¬
Aagaard, 323 Newhouse Bldg^

ceeds—For expenses
—

Road, Madison, N. J.

holders of record July 21, 1955 on the

mon

derwriter

To acquire, explore and develop
Underwriter—The Oil and Gas Co.,

—

properties.

Green. Village

Uranium Corp., Denver, Colo.:
1
Dec. 7 (letter of notification) 1,800,000 shares of
capital
stock.
Price—At par (10 cents per share). Proceeds—
For mining expenses. Office — 320 Denver Club
Bldg.,

Life Underwriters Insurance Co.,

I

None.

Sept. 1

55

share for each four shares held; rights to

Proceeds

mining expenses. Office—E-17 Army Way, Ogden,
Utah.
Underwriter—United Intermountain Brokerage
—For

Helio

mineral

Price

$5,000 each).

South, Salt Lake City, Utah.
Underwriter—Empire Se¬
curities Corp., Las Vegas, Nev.

143

Thursday, December 15,1955

...

per

Olive-Myers Spalti Mfg. Co., Dallas, Texas

Indemnity Co., Elgin, III.
500,000 shares of
share.

common

Proceeds—For

stock

general

Oct.

(par $1).
corporate

Underwriter—None. Statement effective Dec. 6.

* Mineral Projects-Venture B, Ltd. (N. J.)
I
Dec. 7 (letter of notification) $250,000 of limited
part¬
nership interests. Price—At par (in minimum units of

24

vertible

filed

subscription
share
mon

at

100,000 shares of 55-cent cumulative

preferred

by

common

of preferred
stock

held.

stock

stock for

The

3:30

p.m.

(CST)

fective

date

of

con¬

(par $6.25) to be offered for
stockholders on basis of one

the

each 2,597 shares of com¬
subscription warrants will expire

on

the

14th

registration

day following the ef¬
statement.
Price—To

.Volume 182

Number

5490

.

.

.

The Commercial and Financial
Chronicle

145

(2669)

stockholders, $9.50

per share; to public $10 per share.
Proceeds—For expansion program. Business—Manufac¬

tures household furniture.

Underwriter—Dallas Rupe &

Son, Inc., Dallas, Texas.

Ottilia Villa, Inc., Las
Vegas, Nev.
Aug. 16 (letter of notification) 3,000 shares of
capital
stock.
Price—At par ($100 per share). Proceeds—For
Couth 5th St., Las
Vegas, Nev.

Underwriter—Hennon &

Roberts, Las Vegas, Nev.
Pacific

Metals

&

stock.

Price—At

(one cent per share). Pro¬
ceeds—For expenses incident to
mining activities. Office
par

■—419 Judge Bldg., Salt Lake

City, Utah.

Underwriter—

<Juss Securities Co., Salt Lake
City, Utah.
Paria 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
Bldg., Salt Lake City, Utah. Underwriter
Western

Oct. 17

—

—

States Investment
Co., Tulsa, Okla.
Penn Precision

Products, Inc., Reading, Pa.
(letter of notification) 3,857' shares of common
stock (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¬
Nov.

3

dents

of

Pennsylvania at $14

purchase of mill. Office
Pa. Underwriter—None.

—-

share.

per

501

Penn-Utah Uranium, Inc., Reno, Nev.
1
Aug. 4 (letter of notification) 2,000,000 shares of com¬
mon stock (par three cents). Price—15 cents
per share.

Proceeds—For expenses incident to mining activities.
Office—206 N. Virginia Street, Reno, Nev. Underwriter
—Philip Gordon & Co., Inc., New York, N. Y.

Pipelife Corp., Tulsa, Okla.
Nov. 29 filed 115,000 shares of common stock
(par $1).
Price—$4 per share. Proceeds—To pay current accounts
and

notes

payable; for research and development; and

general

corporate

Underwriter

purposes.

American Securities

North

—

Co., Tulsa, Okla.

of common stock

share

of

19

(par 10 cents) to be offered in units of
Price—$5 per unit. Proceeds—For

each.

payment of note and working capital.
zens National Bank
Bldg.,

Price—12 cents
incident to mining

Proceeds—For expenses

activities.

non¬

stock (par one
cent).

common

share.

per

Office
718 Kittredge
Bldg., Denver, Colo.
Underwriter—Shelley-Roberts & Co., Denver, Colo.

issues.

Proceeds

For expansion and other
corporate
Office—2600 Broadway Ave., S.E., Albuquer¬
N. M. Underwriter—D. W. Falls, President of com¬
—

purposes.

que,

pany.

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
For mining expenses. Office
Simms Bldg.,
Albuquerque, N. M. Underwriter—Mid-America Secu¬
rities, Inc. of Utah, Salt Lake City, Utah.
—

—

Sans

Souci

Hotel, Inc., Las Vegas, Nev.

Nov. 9 filed 1,428,000 shares of

1,097,529

shares

to

are

be

common

offered

stock

for

(of which

subscription

by

stockholders at rate of 1% shares for each share held of
record

Dec.

1, 1955

30,471 shares

Dec. 31);
to be issued in payment for claims of

are

individuals

seven

300,000 shares
President

of

(with rights to expire

and

company).

—For construction of
for

working capital.

on

firms

to be

are

aggregating $30,471; and
by George E. Mitzel,
Price—$1 per share. Proceeds

new
facilities; to pay off notes; and
Underwriter—None.

•
Sayre & Fisher Brick Co., Sayrevclle, N. J.
Sept. 30 filed 325,000 shares of capital stock (par $1).
Price—To be supplied by amendment. Proceeds
For

prepayment of outstanding 5J/2% sinking fund bonds due
1970; balance for general corporate purposes, including
additions and improvements and working
capital. Under¬
writer

—

Barrett

Herrick

Offering—Expected
Science

&

Co., Inc., New York City.

soon.

Press

of

New Jersey, Inc.
(letter of notification) 15,620 shares of common
(no par).
Price—$5 per share.
Proceeds—For

if Preston

building, equipment, working capital, etc.

14

Price—At

market.

Proceeds—For

Professional Casualty Co.,
Nov. 25 filed 250,000 shares of

investment.

Champaign, III.

10

stock

Office—Spur
518, a mile west of the Borough of Hopewell,
County of Mercer, N. J.
Underwriter—Louis R. Dreyling & Co., Jamesburg, N. J.
Route

(par $4).
Price—$10 per share.
Proceeds—For working capital,
Underwriter—Professional Casualty Agency
Co.,
Champaign, 111. John Alan Appleman of Urbana, 111., is
etc.

ordinated
basis
25

to

be

offered

in

units

of

one

share

of

preferred stock and one-half share of common stock.
Price—$6.75 per unit. Proceeds—For general corporate
purposes. Underwriter — Straus, Blosser &
McDowell,
Chicago, 111.
Puerto Rican Jai

of

due

$100 principal

shares

of

Nov. 1, 1980 to be offered
(a) to its stockholders on the

company

stock

amount

then

held

of

and

debentures

(b)

for

each

to

employees of
corporation and its subsidiaries. Price—$95 per $100 of
debentures to stockholders; and at par to public. Proceeds
—For general corporate purposes.
Office—Boston, Mass.
Underwriter—None, but Sheraton Securities Corp., a
subsidiary, will handle stock sales.

Shumway's Broken Arrow Uranium, Inc.
Nov. 7 (letter of notification) 300,000 shares of

Nov. 3 filed

(par 10 cents). Price—$1 per share. Proceeds—
For mining expenses. Office—Moab, Utah. Underwriter

cent).

—Ackerson-Hackett

1,250,000 shares of common stock (par one
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 York.
Offering—Expected any day.
Real

Sept.

Estate

14

(letter

Clearing House, Inc.
of notification) 270,000 shares of 7%

cumulative preferred stock
of common stock (par five
of

two

stock.

shares

of

preferred

Price—$2.05

(par $1)

135,000 shares

cents) to be offered in units
and

unit.

per

and

one

share

of

common

Proceeds—For

working
capital, etc. Office—161 West 54th Street, New
York,
N. Y.
Underwriter—Choice Securities Corp., 35 East
12th Street, 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
and who are to become active
policyholders in the com¬
pany.
Price—$2 per unit. Proceeds—For

general

porate purposes.
Leo

Underwriter—None;

Rich, Robert Kissel

and

to

cor¬

be offered

Sidney M. Gilberg,

as

Trus¬

Nov.

22

1,500,000 shares of common 'stock
(par
Price—50 cents per share.
Proceeds—For

working capital and mining expenses* Office
Moab,
Utah. Underwriter—The Matthew
Corp. of Washington.

Rogers Corp., Rogers, Conn.
(letter of notification) a minimum

and

a

maximum

of 5,883 shares
class B common

of

7,453 shares of
stock to be offered to
stockholders on a basis
share for each four shares held.
Price—($29
Proceeds—To

per

replenish

sustained in recent flood.

working capital due
Underwriter—None

to

of

one

share).
losses

.

San Juan Racing
Association, Inc., Puerto Rico.
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
50 cents per

offering, at
share, of 200,000 shares for subscription
by




Salt

•

Southwestern

States

Price

Lake

Telephone Co.
common

finance, in part, construction
Francisco, Calif. Underwriter
Inc., Chicago, 111.

City,

Proceeds—For construction and op¬

—

To

Office — San
Central Republic Co.,

Harney Hotel, Rapid City, S. D.
Brickley, same address.

Spurr Mining Corp.
(letter of notification) 300,000 shares of common
stock.
Price—$1 per share. Proceeds—For mining ex¬
Underwriter—Cavalier Securities Co., Washing¬

ton, D. C.
• Starrett
13

be

(L. S.)

filed

offered

25,000
from

& Oil Corp.
(letter of notification) 600,000 shares of

stock

Price—50 cents per share. Pro¬
mining expenses. Office—1210 Luisa St.,
Santa Fe, N. M. Underwriter—None.
For

—

Superior Uranium Co., Denver, Colo.
(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

Nov. 9

Bldg:,'Denver, Colo. Underwriter—Securities, Inc., P. O.
Box 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). Proceed*
—For expenses incident to mining activities. Office—
Moab, Utah. Underwriter—Honnold & Co., Inc., Salt
Lake City, Utah.

Sweetwater

20,000 shares pursuant to
shares

pursuant to

if Stone

time

to

Stock Purchase

Uranium

Co.

Sept. 9 (letter of notification) 3,000,000 shares of capital'
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds—For mining operations. Office—605
Judge Bldg.*
Salt Lake City, Utah. Underwriter—Skyline
Securities
Inc., Denver, Colo.

Target Uranium Co., Spokane, Wash.
Aug. 12 (letter of notification) 1,000,000 shares of non¬
assessable stock (par five cents).
Price—20 cents per
share.

Proceeds

For mining expenses.
Office — 72f
Bldg., Spokane, Wash.
Underwriter — Percy
Dale Lanphere, Emoire State
Bldg., Spokane, Wash.
—

Paulsen

if Tenison Drilling Co., Inc.,

Billings, Mont.
400,000 shares of common stock (par 10£).
Price—$1 per share.
Proceeds—For drilling test cost3,
payment of notes and accounts payable and loans and
for general working capital.
Underwriter — Carroll,
Dec.

12 filed

Kirchner

&

Texas

Jaquith, Inc., Denver, Colo.

American

Oil Corp.
notification) 600,000 shares of com¬
(par 10 cents). Price — 50 cents per share.
Proceeds—For drilling expenses, etc.
Office—216 Cen¬
tral Bldg., Midland, Tex.
Underwriter—Kramer, Woods
& Co., Inc., Houston, Tex.
3

•

(letter

of

stock

Texas

Nov.

Eastern Transmission

30

Corp.

filed

200,000 shares of cumulative preferred
(par $100). Price—To be supplied by amendment.

stock

Proceeds—Toward redemption of presently outstanding
190,000 shares of 5.50% first preferred stock.
Under¬

writer—Dillon, Read & Co., Inc., New York.
Postponed until After Jan. 1, 1956.
Dec.

5

stock

Offering-

Quicksilver, Inc., Tonopah, Nev.
(letter of notification) 375,000 shares of common
(par 10 cents).
Price—25 cents per share.
Pro¬

ceeds—For mining operations.

Address—c/o L. B. Sam-

President, P. O. Box 1042, Tonopah, Nev.

mons,

Under¬

•

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 units
of

one

share of each class of stock.

Price—$1
working capital.
Office—5225
Blvd., Los Angeles, Calif. Underwriter—None.

unit.

per

Proceeds—For

Sept. 29
vertible

Wilshire

Publishing Co., Inc., Philadelphia, Pa.
(letter of notification) $247,000 of 5V2% con¬
debentures, series A, due Sept. 1, 1965 and 24,-

700 shares of
In

units

common

consisting

of

common

ceeds—For

stock

of

(par 10 cents), to be offered
of debentures and 100
Price—$1,010 per unit. Pro¬

$1,000

stock.

payment of indebtedness,

expansion, estab¬
offices; professional and editorial
assistance, advertising and promotion; and working capi¬
tal.
Office—Widener Bldg., Philadelphia, Pa.
Under¬
writer—Albert C. Schenkosky, Wichita, Kansas.
lishment of additional

Sept. 14

(no par)
employees (up to
Stock Option Plan and 5,000

to

common

(par five cents).

ceeds

Travelfares, Inc., Seattle, Wash.

Co., Athol, Mass.
shares of common stock
time

Office*—
Underwriter—Mortis

if Summit Uranium
Dec. 9

shares

Nov. 9

penses.

share. Proceed!

Traveler

(par $1).

program.
—

pre¬

—For expenses incident to
mining operations.

(12/16)

stock

To be supplied by amendment. Proceeds

—

one

Price—At

of

writer—None.

Nov. 30 filed 100,000 shares of

of

held.

Plan).

(E. B.)

(letter of notification)

assessable

common

stock.

100,000 shares

Price—At par

($1

per

of

non¬

share).

Proceeds—For repayment of loans, working capital, etc.
Office—1810 Smith Tower, Seattle, Wash. Underwriter
—National Securities Corp., Seattle, Wash.

Finance Co., Inc., Charlotte, N. C.
Dec. 8 (letter of notification) 9,000 shares of 6% cumu¬
lative preferred stock
(par $25) and 6,000 shares of

Oct. 27 filed 2,573,508 shares of common stock (par $1),
which will be issuable upon exercise of the common

class A

D. C.

Oct. 3

Co.,

Mining & Milling Co., Atlanta, Ga.
Sept. 14 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceed!
—For expenses incident to mining activities.
Offices—
Healey Building, Atlanta Ga., and 4116 No. 15th Avenue,
Phoenix, Ariz. Underwriter — Franklin Securities Co.,
Atlanta, Ga.

to

filed

cent).

basis

share

non-

subscrip¬

Summit Springs Uranium
Corp., Rapid City, S. D.

Southern

Dec.

Reynolds Mining & Development
Corp.

one

Investment

Utah.

by

tees.

share).

the

on

common

for

if Tonopah
common

stock

Alai, Inc.

each

offered

Oct. 3 (letter of
notification) 1,200,000 shares of commoa
stock (par 10 cents). Price—25 cents

mon

$15,000,000 of 6V2% cumulative income sub¬

debentures

initially by the

Prudential Loan Corp.,
Washington, D. C.
Nov. 22 filed 111,000 shares of 44-cent cumulative
prior
preferred stock (par $5) and 55,500 shares of 10-cent par
stock

Corp. of America

Oct. 31 filed

President of the company.

common

per

stockholders

for

be

named

Nov.

Sheraton

stock

common

($2

to

sulphur extraction plant.
Underwriter—To
by amendment. L. D. Sherman & Co., New
York, handled common stock financing in August, 1954.
be

offered

Nov.

Dec.

common

share

stock

per

if San-O-Let Service, Inc.
9 (letter of
notification) 200,000 shares of common
stock (par 10 cents) and
100,000 shares of cumulative
preferred stock (par $1). Price—$1 per share for both

Independence, Kan. Under¬
writer—Dewitt Investment Co.,
Wilmington, Del.
Fund, Inc., Boston, Mass.
filed 20,000 additional shares of
capital stock.

by

ferred

—

Dec.

Office—420 Citi¬

Moss

cumulative preferred
tion

eration

Exploration, Inc.
notification) 925,000 shares of

(letter of

—

Pittman Drilling & Oil Co.,
Independence, Kan.
Bept. 6 (letter of notification) 60,000 shares of 6% noncumulative preferred stock (par $5) and
60,000 shares
one

San Juan Uranium

Aug.

Proceeds—For

Crescent Ave., Reading,

Sulphur Exploration Co., Houston, Texas
21 filed
600,000 shares of 6% convertible

Nov.

par

assessable

International

Uranium, Inc.
Aug. 12 (letter of notification) 12,000,000 shares of com¬
mon

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.

stock

common

stock

(par $5).

at

Price—For preferred,
Proceeds—

par; and for common, $12.50 per share.
From sale of preferred, for working

capital; from sale

of common, to Pauline Phillips Stone, a director, who is
the selling stockholder.
Office—910 So. Tryon St., Char¬

lotte,

N.

C.

Underwriter—R.

S.

Dickson

&

Co.,

Inc.,

Charlotte, N. 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

of

common

Proceeds—
Astor

&

Sts.,

Co., Inc.,

Tri-Continental Corp., New York

purchase warrants presently outstanding. Price—
currently entitled the holder to purchase
1.27
shares
at
$17.76 per share for each one share
specified in the warrant certificate.
Each

warrant

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
or multiples thereof).
Proceeds—To refinance and dis¬
charge secured obligation. Underwriter — McDonald,
Evans & Co.. Kansas City, Mo.
Continued

on

page

146

146

(2670)
The Commercial and Financial
Chronicle

Continued from page 145

stockholders.

Price—On Jhe over-the-counter market at

participating convertible preferred
2,950

shares

offered

in

of

share of

one

Proceeds

of

10

shares

stock.

common

To

—

stock

common

units

(par
of

of 6%%
(par $10) and

cent)

one

preferred

Price

prevailing price, lout not less than $2 per share.
Proceeds—For auxiliary equipment for
Cody plant, for
acquisition of additional site, and related activities.

shares

stock

—

to

stock

$100.01

—

.,

Yellowknife

..

Union Corp. of America
Oct. 13 filed 797,800 shares of
common stock
(no par).
Price—Proposed maximum offering price per unit is $5
per share. Proceeds—To acquire one life
and one fire
Insurance company, and one
mortgage loan firm. Under¬
writer—None; shares to be sold through directors and
officers. .,
.

ftock

of

Mining Corp.
notification) 600,000 shares

(par 10 cents).

Price—50

ceeds—For mining expenses.

Denver, Colo.

&

city.

same

U. S. Automatic

Machinery & Chemical Corp.
(letter of notification)
£00,000 shares of class A
common stock
(par 10 cents). Price—$1 per share. Pro¬
ceeds—( For general corporate purposes.
Office—8620
Montgomery Ave., Philadelphia, Pa. Underwriter—Co¬
Nov. 4

N. Y.

Underwriter—None.

'

•

be offered in units of
of

Nov.

30

A common

Lake
same

$10,000,000 of first mortgage bonds. Proceeds—To
repay
loans and for new construction.
Underwriter—To
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Salo-

Bros. & Hutzler;
Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
ties Corp.; Equitable Securities
Corp.; Lehman Brothers;

.mon

shares

of

common

Aug.

Underwriter—H.

P.

Investment

Co.,

small

outstanding obligations; and for
working capital".
Office—North Salt Lake, Utah.
Underwriter—J. Barth
& Co., San
Francisco, Calif.

Wonder Mountain
Uranium, Inc.,
Aug. 12 (letter of notificationy
mon

Proceeds

Denver, Colo.

2,380,000 shares

stock

{par

—

one

cent).

Price—10 cents
For expenses incident
to
mining

of com¬

per

share.

activities.
Office—414 Denver Nat'l
Bldg., Denver, Colo. Under¬
& Co.,
Denver, Colo.
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;

writer—Floyd Koster

revision

of 5V2%

stock

common

(not

than

more

Price—At

of

company

£

and

convertible subordinated debentures.

For

Wyo

Underwriter—Valley

South State
St., Salt Lake

Wycotah

State

St., Lander,

Brokerage, Inc.,

City, Utah.

Oil &

Uranium, Inc., Denver, Colo.
1,500,125 shares of common stock
(par one
cent) to be offered only to the
owners of
percentages of
working interests in certain oil and
owners
for such

of

certain

uranium

working interests

to be

valued at an
ceeds—To acquire

York.
in

Offering—Expected before

end

of

1955

or

properties.

of

Automatic Washer Corp.
Dec. 5 it

count

and

271,000

shares




for

for

writer—Cohen, Simonson

&

early

1

it

was

next

Under¬

Co., New York.

will

vote

about-

proving a" refinancing

mid-January

program.
Proceeds
sale of $8,000,000 new

on

ap¬

Together
4Y4% prior lien
bonds^ to redeem $10,400,000 outstanding 4V2% first
mortgage bonds. Underwriter—May be The First
Boston
Corp., New York.
;
- *
with funds

from

—

if Chemical Corn Exchange
Bank, New York

Dec. 8 it

was

account

company's
of

two

ac¬

selling

a-

expects to

program.

Underwriter—To

be

stockholders will vote Jan. 17
on
approving a proposal to offer to stockholders
590,425
additional shares of capital stock on
a
l-for-8 basis.
Citizens & Southern National
Nov. 8 the
additional

holders

directors
shares of

on

Bank, Atlanta, Ga.

the

recommended
common

basis

of

one

stock
new

the

sale

of

(par $10)
share

for

100,000

to

stock¬

each

nine

'

-

announced

that

Foremost

Dairies,

Inc.

Co., New York.

*

was

on

&'

Broadcasting Corp.
announced that

Dec.

2

to

corporation, following is¬

stockholders of Allen B. Du Mont

of 944,422 shares of

common

slock

as

will

bfe

dividend, contemplates that additional shares

&

Co.

to

its

stockholders.

This offering will be un¬
Kuhn, Loeb & Co. and Van Alstyne, Noel

handled Du

nancing

some

Mont

years

Laboratories class A stock fi¬

ago. ..Stockholders

of

Laboratories

Oct. 10 approved formation of
Broadcasting firm.

on

r

I

;•

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 bv
negotiated sale to a pur¬
chaser who will buy at the

prevailing

less

discount of not

a

Essex

,

more

market

prices,

than 50 cents per share.

"i

County Electric Co., f.

July 18 it

reported company plans to issue and sell

was

additional

first

mortgage bonds.Underwriter—To

"be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;

Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Incorporated.

Blair & Co.

Federal Pacific Electric Co.
15 it was announced directors

Nov.

issue

of

chase

debentures, together with

warrants.

derwriters—H.
Stone

&

Proceeds—To
M.

are

reduce

Byllesby & Co.

considering

bank

(Inc.)

an

stock

pur¬

loans.

common

Un¬

and

Hayden,

Co.. New York.

Florida Power Corp.
April 14 it was announced company may issue and sell
between $10,000,000 and $12,000,000 of first
mortgage
bonds. Underwriters—To be determined

by competitive

Conveniently located

in the heart of New York's
great financial

district, Pandick Press, Inc. is
"open for business" 24 hours
7

days

a

a

day,

week.

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
ner & Beane
(jointly); Lehman Brothers and Blyth &
Co..

Inr

Boston

TjointlvY: Glore

Corp.

6

it

common

is

one

guarantees the finest and most

of the

reasons

"Printed

by Pandick"

complete printing service available.

Fnrgan

&

Co.:

and

The

First

Offering—Expected early in 1956.

Fcrd Motcr

Nov.

NIGHT & my Service

was

stock

Co., Detroit, Mich.
announced

is

a

expected

(1/18)

public offering of class A
shortlv after Jan. 1. 1956;

The stock to be sold will be
6.952,293 shares
the 46,348,620 shares to be owned

(or 15% of

by the Ford Founda¬

tion
was

following reclassification of the stock). Price—It
reported that the offering price was expected to be
$60 to $70 per share. Underwriters—Blyth & Co.,

around

fnc.
Vess./r,
ST., NEW YORK

WOrth 4-2900

&

NY 1-3167

Inc.; The First Boston Corp.; Goldman, Sachs & Co.;
Kuhn, Loeb & Co.; Lehman Brothers; Merrill Lynch,
Pierce, Fenner & Beane; and White, Weld & Co. Regis¬

tration—Expected about Dec. 20.
71 CLINTON ST.,

NEWARK, N. I

MArkel 3-4994

1

■

future date to give its stockholders the
right
its Dolly
Madison stock.
Underwriter-^-

Laboratories, Inc.
a

some

announced

Established 1923

10

<•

stock

Duquesne Light Co.

company may issue and sell
additional common stock to its

some

who

a

derwritten.

announced

year

stockholders

71 THAMES

(par

suance

Bangor & Aroostock RR.
Dec.

was

.

$1.50).

Price—Shares

stock

Light Co.

common

construction

Du Mont

Aug. 10 it

reported company plans early
registration
of 250,000 shares of common
stock (par

Underwriter—None.

are

&

announced that the company

*

was

$4 per share. Pro¬

Wyoming-Gulf Sulphur Corp.
Pet.'10 filed (971,000 shares
of capital
cents), of which 700,000 shares

Power

some

it

offered

properties, and in exchange

and properties.

Proceeds—For gen¬
G. Becker &

company's stock.

was

purchase

,

early

January.

gas leases and to the

arbitrary price

stock.

Underwriter—A.

Brothers.

15

Allen &

Proceeds

2520

10 filed

the

intends at

inventory and to retire subsidiary indebt¬
Underwriter—Van Alstyne, Noel &
Co., New

edness.

com¬

Uranium Enterprises, Inc.,

common

■

$3,000,000

(10 cents per
share). Proceeds
Office—Virginia Truckee Bldg.,

Lander, Wyo.
(letter of
notification) 273,000 shares of
capital
(par 50 cents).
Price—$1 per share.
Proceeds—
mining operations.
Office—268 Main
6

.

,

reported company plans to issue and sell
purposes.

Dolly Madison International Foods Ltd.
Nov.

plans to issue and sell

par

stock

t

-

.

C.

"to

Carson City, Nev.
Underwriter—Cayias, Larson, Glaser,
Emery, Inc., Salt Lake
City, Utah.
,
Dec.

of

Lehman

75,000

Woodstock Uranium
Corp., Carson City, Nev.
Nov.
—For pruning
expenses.

.

by competitive bidding. Probable bidders:
Langley & Co. and Union Securities Corp.
(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);

.W.

—

21,(letter of notification)
3,000,000 shares

..

financing early in 1956,
probably first to stockholders (this is in addition to bond
financing planned for Dec. 13). Pro¬

Underwriters-Urobably Union

—To increase

of> corporate
structure, etc. Underwriter
Straus, Blosser &
McDowell, Chicago, 111. Offering—To
lae withdrawn.

mon stock.

corporate

undertake

England, President, announced that the
considering the sale to the public of a

of

$3,000,000 of 5% sinking fund debentures

—

(par 25 cents) to be < offered in
units of $50 of
-debentures and five shares of
stock.
Price—$52.50 per
unit* Proceeds—For construction
and installation of a
Houdriformer cracking
unit; expansion of refinery; to
repay

was

Sept. 28 it

(Proceeds

now

amount

—

stock

Bids—Tentatively scheduled
•

Delaware

City Electric Co.

L.

are

Atlas Plywood
Corp.
Oct. 12 it was announced

—

★ Western States
Refining Co.
Dec. 14 filed
$1,050,000 10-year 6%
sinking fund deben¬
tures due Jan.
1, 1966, and 105,000 shares of common

eral

Securities Corp. and
Smith, Barney & Co., both of New
York.

and

Warrior Mining
Co., Birmingham, Ala.
Sept. 29 (letter of
notification) 6,000,000 shares of non¬
assessable common stock
(par one cent). Price
Five
cents per share. Proceeds
For expenses incident
to
mining activities. Office
718 Title Guarantee
Bldg.,
•Birmingham, Ala. Underwriter—Graham &
Co., Pitts¬
burgh, Pa. and Birmingham, Ala.

Incorporated.

and preferred stock

shares) early next year.

stock

Provo, Utah

15.

180,000 shares of its

t

1, B.

directors

purposes.

Honolulu, Hawaii.

Co.

Nov. 21 it

Prospective Offerings

(par
cents). Price—25 cents per share.
Proceeds—To
explore and acquire
claims, for purchase of equipment
and for
working capital and other corporate
five

&

Feb.

Danly Machine Specialties, Inc., Chicago, 111.

Broadway, Salt
City, Utah. Underwriter—Bel-Air Securities
Corp.,

Atlantic

Wagon Box Uranium Corp.,
Provo, Utah
2,000,000

Blair
for

ceeds—For

incident to mining activities.
Office—312 Byington Bldg.,
Reno, Nev.
Underwriter—Lester L. LaFortune, Las Vegas, Nev.
filed

~;

-

determined

penses

21

Light Co.-(2/15)

bank

effer

Price—At par (five cents).
mining expenses. Office—45 East

Inc., Reno, Nev.
Aug., 15 (letter of notification) 270,000 shares of
capital
stock.
Price—At par ($1 per
share). Proceeds—For ex¬

Nov.

in December.

Co., Inc., Chicago, 111. This will represent the first public

stock.

city.

build

,

—

be determined

Sept. 14 (letter of notification) 6,000,000 shares off class
—For

Proceeds—To

-

brickettes

reported company plans to issue and sell

Underwriter—G. H. Walker &
Co., New York.
Zenith-Utah Uranium Corp.

(par 16% cents). Price—50 cents
per share.
Pro¬
ceeds—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 Orleans, La.
Utah Grank,

unit.

per

charcoal

Dallas Power &
Nov. 28 it" was

$1,000,000, to be used to redeem presently outstanding
10,000 shares of preferred stock (par $10), $1,005,000 of
4% debentures, $200,000 of 5%
registered notes and
$116,250 of 4% convertible notes; also for
acquisition,
exploration and development of additional
property.

Utah-Arizona Uranium,
Inc., Salt Lake City, Utah
Aug. 1 (letter of notification)
600,000 shares of common

make

sometime

(12/28)

Universal Service
Corp., Inc., Houston, Texas
.July 8 filed 500,000 shares of common
stock (par two
mills). 4Price—$2.50 per share.
Proceeds—For equip¬
ment, mining costs, oil and
gas
development, and other
corporate purposes.
Underwriter
None.
Offering —
Postponed.

stock

to

and
chemical by¬
notably furfural.' Underwriters
William R.
Staats & Co., Los
Angeles, Calif.; and Carl M. Loeb/
Rhoades & Co., New York.
Registration —> Expected

filed

Of¬

—

$1,000 debenture and 100 shares

a

Price—$1,100

products,

-

Zapata Petroleum Corp., Midland, Tex.

stock.

plant

120,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—Together with funds - from proposed bank loan of

lumbia Securities
Corp., 135 Broadway, New York.
fering:—Expected before Jan. 1, 1956.

Hemphill, Noyes & Co., New

—

Cumberland Corp., Lexington, Ky^ *
«.
Nov. 19 it was announced
public 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

.

Co.,

Underwriter

York.

if York Financial Corp.
Dec. 7 (letter of
notification) $150,030 of 10% five year
debentures and 9,998 shares of class A stock
(par $1").
Price—At par (in denominations of
$1,000 each) for
debentures; and $10 per share for stock. Proceeds—For
working capital. Office—475 Fifth Ave., New York 17,

per share.
Pro¬
Office—510 Colorado
Bldg.,

shares

holders.

Corp.

payments under purchase and option agreements for
claims; for working capital and reserve funds; and for
general corporate purposes.
Office — Toronto,
Canada. Underwriters—Gearhart &
Otis, Inc. and F. H.
Crerie & Co., Inc., both of New York
City. Offering—
Indefinitely postponed.
.-•>

of common

*

.

to be sold for the account of the
company and
for account
of
certain
selling stock¬

are

125,000

other

cents

Underwriter—Honnold

3hares
•

of company and 300,000 shares for account of Stancan
Uranium Corp.
Price—$1.50 per share.
Proceeds—For

Union Gulf Oil &

Sept. 9 (letter

(par $1).

Aug. 19 filed 1,000,000 shares of common stock (par one
cent), of which 700,000 shares are to be sold for account

•

.

Uranium

*

Craig Systems, Inc.
t
Sept. 26 it was reported company plans early registra¬
tion of 175,000 shares of common
stock, of which 50,000

of

working capital. Office
51
Vesey St., Ne\y York, N. Y. Underwriter—New York
and American Securities
Co., 90 Wall St., New York,
N.
Y.

capital and surplus.

Price—At the market. Proceeds—To August
Buschmann,
Seattle, Wash., and members of his family. Under¬
writer—None.

unit.

per

increase

Wyton Oil & Gas Co., Newcastle, Wyo.
Sept. 29 filed 254,000 shares of common stock

be
and

Thursday, December 15,1955

..

shares held (subject to
approval of stockholders in Jan¬
uary). Price — $30 per share. Proceeds — To increase

then

if Underwriters Factors Corp.
Dec. 7 (letter of
notification) 29,500

.

Green
Dec.

5

it

(A. P.)

Fire Brick Co., Mexico, Mo.

reported common stock financing is ex¬
pected early in 1956.
Underwriters—May be Blyrth &
Co., Inc. and Shields & Co., both of New York.
was

a

,

Volume 182

Number

54S0

.

.

The Commercial and Financial Chronicle

.

(2671)
Gulf States Utilities Co.

May 16 it
$10,000,000
permit.

bidding.

reported

was

first

company

bonds

mortgage

stockholders). Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: The First Boston
Corp., Blyth & Co.; Inc., and Kuhn, Loeb & Co. (joint¬
ly); Lehman Brothers and Riter & Co. (jointly); Smith,
Barney & Co.; White, Weld & Co. and Glore, Forgan
&.Co. Bids—Expected to be received on Feb. 29.

issue

may

if

and sell
conditioni

market

Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.; :

Lehman

Brothers; Merrill Lynch, Pierce,: Fenner &
'eane and White, Weld & Co=~(jointly); Salomon Bros
Hutzler and -Union Securities Corp. (jointly); Kuhn.
oeb &"Co. and A. C. Allyn &
Co., Inc. (jointly);, Lee
igginson Corp. and Carl M. Loeb, Rhoades & Co. (jointy); Stone & Webster Securities Corp..
Houston Lighting & Power Co.

Oct.

31

it

reported

was

company

;

J

•'

sell early next

may

&

Co.

'

v

Kidder, Peabody
Co.; Equitable
ecurities Corp.' Offering — Expected in February or

28

it

New York.
;

.'t ;

reported company may do some public
connection with proposed newsprint mill,

the
•

10 held

3, Joseph L. Block, President, announced that a
ubstantial portion of the required funds for the comany's expansion program (estimated to cost approxi-

two

it

that the

announced

was

to

on

ed

sell

to

additional

ditional

stock.

Proceeds—To

$37,000,000.

.

Korvette
21 it

oy.

rent

Co.

Loeb, Rhoades
Offering—Expected in January.

York.

[Modern Homes Corp.
it

21

oy.

company

offer

may

ock.

Business

Manufactures

—

some

York,

18 it
on

cured

New Haven & Hartford
announced

was

approving
(a)

uance

of

a

not

stockholders

21

will

plan of exchange providing for the
exceeding $58,131,150 of new un-

non-convertible

dividend

as

$72,638,265

preferred

on

of

new

5%

for

1955); and

year

non-convertible

general

in-

17

mortgage bonds, series B, dated Jan. 1, 1956, in
change for present $69,179,300 of 41/2% convertible
income mortgage
bonds, series A, due July 1,
22, on the basis of $105 of new series B bonds for each
neral

of

series

Tude
&

1955

A

bonds

interest.

plus*$5.25 in,; cash, which will
Dealer-Manager—Francis I. du.

Co., New York.

;

Northern States
12 it

additional

some

ew

Pow«r Oo.

(Minn.)

(2/29)

comfhonKstock

(probably

"alsey,

Stuart
are

&

year

1,

ed
ard

3%%

Inc.

and

interest,
the

Telephone Co.

debentures,

1995, at

of

Co.

offering $25,000,000

New Jersey Bell

100.99%

to

at

due

and

yield

issue

underwriters

was

ac-

3.33%.
won

by

competitive

yesterday (Dec. 14)

on

a

bid

100.36%.

of

proceeds

company

to

from
will

the
be

prepay

sale
used

30

$10).

of

by

advances

the
parent
 organization,


of

for

the

proceeds

general

be

pur¬

poses.

that

about

The

debentures

are

to

be

re¬

at

optional redemption
prices ranging from 103.99% - to
par, plus accrued interest.
New Jersey Bell

Telephone Co.

is engaged in the business of fur¬

nishing

communication

telephone

State of New

1955,

the

telephones
about

company

in

On June 30,

had

service,

two-thirds

services,

service, in the

Jersey.

2,155,198
of

were

which
in

authorized

the

stock

common

a

new

issue

of

30,000

,

stock to raise

common

and

be

for

other

pated that the

stock

new

Textron American,

will

increase
to

gram.

York.

convertible
exploration

the

U.

issuance

preferred
and

of

radio

ing.

•'

of

With

operating

the

revenues

11

on

Tenn.

Meeting—

increasing authorized

had

Corp,

reported company plans some new financ¬
details are not yet available.
Underwriters—
was

Westcoast Transmission
Nov.

21

and sell

it

was

reported

publicly

over

Co.,

company

and

Hemphill,

Ltd.
plans

now

to

issue

$20,000,000 of securities, probably

in units of debentures and stock.

Bonds

are

expected to

privately. Proceeds—For new pipe line.
derwriter—Eastman, Dillon & Co., New York.
York
June

29

issuance

County Gas Co., York, Pa.
it

was

and

announced

sale

company contemplates th«
later this year of a new series of Its

first

mortgage bonds, in an aggregate amount not yet
Proceeds—To pay for new construction
probably to refund an issue of $560,000 4%% first
mortgage bonds due 1978. Underwriter—May be deter¬
mined by competitive
bidding.
Probable bidders; Hal¬
sey, Stuart & Co. Inc.: A. C. Allyn & Co.
Inc.;
determined.

and

Weld

&

Co.

White,

and

Dossible that issue

Shields
may

Minneapolis Assoc.

C. Frykholm

Un¬

&

is

now

with Minne-

(jointly).
nrivateiv
*

It

is

also

With J. R. Williston Co.

Minn.—Oliver

apolis Associates, Rand Tower.

Co.

be Dlared

(Speciafto The Financial Chronicle)
MIAMI

R.

BEACH, Fla. —George
Murphy is now with J. R.

Williston

&

Co.,

631

71st

Street.

con¬

television

company

Petrofina

but

MINNEAPOLIS,

companies.
also in¬
writer exchange

and net income of

Jan.

^

Harris, Upham Adds
SAN

of $110,871,570

$12,056,107.

(Special to The Financial Chronicle)

FRANCISCO, Calif.—Geo.
A. deUrioste is now with Harris,
Upham & Co., 232 Montgomery

Mongiello

Street.

State

pro¬

total

Two With P. de Rensis

(Special to The Financial Chronicle)

BOSTON,
now

Mass.

and

—

Rocco

P.

Frank

Parisi

with P. de Rensis & Co.,

are

126

Street.

With Norman F. Dacey

With Eaton & Howard

(Special to The Financial Chronicle)

and for other purposes.

1955,

vote

(Special to The Financial Chronicle)

For the six months ended June

30,

110,000
(par

stock

other

and

to

be placed

in

seryice, mobile radio - telephone
service, and services and facilities
for private line telephone or tele¬
typewriter use, for the transmis¬
sion

Bank, Memphis, Tenn.
offering to stockholders

an

'White, Weld & Co., Blyth & Co., Inc.
Noyes & Co., all of New York.

drilling program,

State

S.

Dec. 12 it

authorized

Services of the company

grams

public offering of

a

per share.
—
To expand non-textile diversification
pro¬
Underwriter — Blair & Co. Incorporated, New
Offering—Expected in January.
,
;

Stockholders

.

part of the

-

during the

Inc.

Equitable Securities Corp., Nashville,

10,000,000 shares
$150,000,000 from

of
Bergen, Essex,
Middlesex, Passaic and
Union.
The
company
furnishes
toll
service within
New
Jersey
and
between points
within and

teletype

marketed

of 60,000 additional shares of
capital stock (par $10) on
a
l-for-10 basis.
Price—$35 per share. Underwriter—

Seattle,

authorized

with

be

capital stock from $6,000,000 to $7,000,000.

counties

clude

Un¬

bidding.

$30,000,000 debentures is expected to be made with an
interest rate hot to exceed 5% and
initially convertible
into common stock at a price not less than $30

oversubscription
King, Libaire, Stout

&

Hudson,

junction

stocks

purposes.

competitive

Dec. 8 the directors announced that

announced bank

cumulative

by

common

bidders:

Nov. 29 directors authorized

indebtedness

stockholders

corporate

determined

Proceeds

Proceeds—For expansion program.

was

approximately $15,000,-

Proceeds—For further investment in

subsidiaries

shares of

'

proposals to

value), of which

par

Utilities Co. (1/31)
18, the directors authorized the sale of additional

Union Planters National

authorized

(no

first quarter of 1956.

800,000

points outside of the state in

deemable

28.

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¬

company plans to sell aboui
stock.
Underwriter—Bache & Co.,

Airlines, Inc.

Proceeds—For

will

corporate

Feb.

new

Probable

reported

common

northeastern

used

for

derwriter—To

Corp., San Antonio, Tex.

the

mainly

debentures

m

000.

Underwriter—Blyth & Co., Inc., Seattle, Wash, 'j

shares' of

to

construction. Under-;

new

Industries, Inc.

stockholders

shares of

stock, to 40,000,000 shares from

which are expected to ap¬
proximate $20,500,000 at the time
the proceeds are received.
The
balance

"et

was

Co.,

ebenfsres Offered

c,

announced

American Telephone & Telegraph

Jersey Bell Tel.

ociates

first

annual

by competitive bidding. Prob¬
Halsey, Stuart & Co. Inc.; The First Boston

Texas

Underwriter—To

program.

South TexAs Oil & Gas Co.

Aug.

reported that company plans to issue and

was

11

Nov.

plans to offer its stock¬
holders of record Jan. 18, 1956, the
right to subscribe
on
or
before jFeb. 24 for 100,000 additional shares of
capital stock (par $20) on the basis of one new share
for each eight shares held. Price—To be not less than
$85 per share.-; Proceeds—To increase capital and sur-*
plus.

equal

—Rauscher, Pierce & Co., Inc., Dallas, Tex.

(1/17)

Seattle-First National Bank,
Wash.
(1/18)

x.,.

1

construction

approved

the

•

c.

it~

Nov. 22 it

nae

nt

Oct.

reported company proposes issuance and
of preferred stock early next year.

was

$50,000,000.
-

15

-

Electric Service Co.

Texas

Underwriters—Porter, Stacy & Co., Houston, Tex.;

common

(b)

in

Halsey, Stuart & Co.
Hutzler; Kidder, Peabody & Co.

it

scheduled

reported company plans to issue and sell

was

it

22

holders
and

mature

bidders:

Corp.; Union Securities Corp.!; Kuhn, Loeb & Co., Leh¬
Brothers and Blyth & Co., Inc.
(jointly); Hemphill,
Noyes & Co. and Drexel & Co. (jointly);
Kidder, Pea¬
body & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Harriman Ripley & Co. Inc. and Stone &
Webster Securities
Corp. (jointly). Bids — Tentatively

Sept.

Dec.

to

man

(1/17)

Paper Co.
20, Thomas B. McCabe, President, announced t
majoi; financing program will, probably be undertaker
by next spring. No decision has yet been reached a*
to the precise type, amount or date of
financing. Stock¬

RR.
on

100-year 5% debentures, dated
n. 1,1956, in
exchange for present $55,363,000 par value
o
convertible preferred stock, series
A, on the basis
$105 of debentures for each $100 par value of
prerred stock, plus $5.25 in cash
($5 of .which .will be

00

Concurrently, 100,000
public for the account of

Scott

New

id

4, 1956.

privilege). Underwriter—Eisele
& Co., New York.

Co.

28

able bidders:

Nov. 2 it was 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

to

SS,

Probable

—To repay bank loans and for
writer—To be determined

$8,000,000

^Riddle

wholly-owned subsidiary,
ultimately offer the certificates through
mpetitive bidding. Probable bidders: Halsey, Stuart
Co. Inc.; Salomon Bros. &
Hutzler; Kidder, Peabody

te

it

$600,000 Of,

28 company asked ICC for
authority to sell $6,600,0 equipment trust certificates to mature Dec.
15, 195670 to Despatch Shops, Inc., a

v.

stockholders

New York.

ov.

latter

sell

Pike; County Natural Gas Co.

■

series

(2/28)
was
reported company plans to issue and
$10,000,000 first mortgage bonds due 1986. Proceeds

Nov.

determined

Oct.

New York Central RR.

ith

2117, 195 Broadway, New

Inc.; Salomon Bros. &

—

and Muir Investment

homes,

-

„

e*

it is planned to initially issue
10,000 shares bearing a $5
dividend and having a redemption value of
$105 per
share. Proceeds—For expansion program.
Underwrite*

7

gram.

common

Cov San

Southern Pacific Cot
(12/15)
Bids will be received at Room

installments.

additional capital stock would be offered for
public sale
the first of next year... Proceeds — Estimated
at
about $2,000,000, will be used to
pay for expansion pro¬

ffices—Dearborn, Mich., and Port Jervis-, N. J.' Under¬
rate*—Probably Campbell, McCarty & Co., Inc., Deoit, Mich.
-

California

certificates,

Pigeon Hole Parking of Texas, Inc.

publicly

prefabricated

be placed privately.

York 6, N. Y., up to noori
(EST) on Dec. 15 for the pur¬
chase from the
company of $9,600,000 of equipment trust

after

,000,600 of convertible debentures and

First

pro¬

&

Weeks,
Co., Los Angeles, Calif.;
Francisco, Calif. Bonds

&

shares of

of

Oct.

Co.,

■•*'

(Mich.)

reported

was

&

*

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.

reported company is considering a public
consolidation of nine stores into one

Urdcrwriter—Carl M.

York; Wiliam R. Staats

repay

Proceeds—For
be

corporation which is expected before the end of

year.

ew

sale

1950'

Proceeds—For •construction

may

used for expansion and general corpo¬
Underwriter
Morgan Stanley & Co.,
Registration—Expected in the near future.

was

Co.

$20,700,000

To

Nov.

-

following

er,

e

(E. J.)

was

about Jan.

be offered to the

Bids—Expected Jan. 17.
Pennsylvania Electric Co.

•

.

common

stocks).

and

Coast of.

Inc.

Underwriter—Blyth & Co., Inc.,

York.

cw

Gulf

of first mortgage bonds.
Proceeds
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.,

an

common

the

selling stockholders. Proceeds—Together with funds
a
long-term loan of $3,700,000 from an insurance

about

—

be

for further expansion, estimated to cost

pay

to offer to its

Pennsylvania Electric Co.

er

et

to

Power

announced company plans totsell in

Underwriters—Foj stocks: Hornblower

Texas

or

to

Oct. 28 it

fur-

financing, the nature and extent of which has not
been determined, except it is not the
present inten-

on

are

New York.

Wis.
company plans

River

company, to be
rate purposes.

three-year period 1956-1958)
ill be derived from retained
earnings and depreciation
eserves.
However, he stated, it will also be necessary
secure a large portion through public
financing. It is
uite likely that a major part will be in the form of debt
inancing. No such financing is contemplated during the
urrent year, nor have the times or methods of financg been definitely determined. Underwriter — Kuhn,
oeb & Co., New York.
22

pipeline off-shore -the coast of

Sabine

from

for

KimberGy-Clark Corp., Neercah,

New

a

right to subscribe to 213,845 new common shares
(par 83Vs cents) in the ratio of one new share for each

ov.

ov.

build

'

company plans

shares

$260,0(^0,000

to

common

gram.

the

Inland Steel Co.

ately

necessity

and

,com-

Power

Outboard, Marine & Manufacturing Co. (1/4)
Nov. 22, Joseph G.
;|Rayniak, President, announced that

was

inancing in
hicb, it is estimated, will cost about $25,000,100. Underriter—Lee Higginson Corpf, New York.

Federal

Nevada

was

approximately $10,000,000 of new securities (probably'
$7,000,000 first mortgage bonds and $3,000^)00 preferred

common

Hudson Puip & Faper Corp.
ov.

Southern
Nov. 7 it

notes, convertible into preferred stock at maturity, and
stock). Underwriter—Salomon Bros. & Hutzler,

(jointly);

,

of

the

Mississippi. It is estimated that this gathering system will cost approximately $150,000,900. 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

and

arch.

gas

with

common stock
financing wasby Hunter Securities Corp., New York, who
stated, will not underwrite the new preferred issue.

it is

the State of

Blyth & Co., Inc. ;■(jointly); Lehman
rothers, Union Securiiies Corp. and Salomon Bros. &
utzler

submarine

Louisiana -from the

$30,000,000" of bonds.-Underwriter—To be
etermined by competitive bidding. • Probable bidders:
alsey, Stuart & Co. Inc.; Smith, Barney & Co., Lazard
reres

364-mile

--r?..:

about

ear

pany has filed an application
Commission for $ certificate

-

Underwriter—Previous

handled

Offshore

Gathering Corp., Houston, Texas
Nov.-18 David C. ;Bintliff,
President, announced

1

etc.

147

(Special to The Financial Chronicle)

BRIDGEPORT, Conn.—Maurice
BOSTON, Mass. — George S.
Mostyn-Brown is with Norman Bissell has become connected with
F

Dacey &

Street.

Associates, 114 State

Eaton &. Howard, Incorporated, 24
Federal Street.

148

The Commercial and Financial Chronicle

(2672)

Year's
The

as
investors
opened
accumulation accounts,
according to the National Associa¬

its 125 open-end
member companies, the Associa¬
of

accounts,

a

of

excess

30, net assets of the

Association's

open-end

amounted

865.000,

against total assets of

$7,216,241,000

the

at

$7,759,-

to

of Oc¬

end

tober, 1955.

this year, new

share sales topped

$90,000,000, totalling $95,350,000 in
November,

SO

to

as

to

in

from

$30,879,000

in October.

Total

first

11

amounted

of

months

to

with

redemptions for

$423,274,000,

$364,697,000

period last

1955
com¬

for

ties

and

by the 125 mutual funds to¬

talled

the

short-term

$455,935,000

obligations

at

the

end

of

November, with holdings of $438,-

rising,"

"though the cyclical

reported,

created

pressures

he

and

tends

"The

added.

firmness

toward

of

money|

reduction

a

Abroad, the economic situation

in

better

appears

but the political situation, at least
Total foreign trade is running at re¬

superficially, is less good.
high volumes."

cent

industries

ous

uniform

pointed out that "irregularity among the vari¬
appear
or
increase after the impressively
that

has

brought

prosperity in

so

di¬

many

rections."
"This does not

necessarily mean," he said, "that the production
rise above recent levels, for that
appears possible,
hoped that the boom is not carried to such lengths

index will not
but it is to be

to

as

involve

unwarranted

Evidences

Dr.

of

business

Hubbard

levels,"

expansion

stated.

reaction."

severe

strength have been

reported.

he

and

trade

continues

remains

Business

in

near

record

plans for

new

Fund Cuts Fees

expense

out

The management fees of Chem¬
ical Fund, Inc. have been reduced

$75,000,000
assets

Keystone

The

i,

in

new

and

by

The

$125,000,000.
fees, effective

of

Vz of 1 % annually

on

50

of

average

Va of 1% annually
daily net assets

Congress Street, Boston 9, Mass.
Please send

first

Funds.

describing

i

F.

Eberstadt,

board,

and

sales

of

Concord

*

i

on

in

writers
of

average
excess

the

of

Inc.,

and

other

Cty

.....

State...

chairman

Francis

should

Fund

S.

for the "bal¬

anced"

at

funds

for

average

did almost

com¬

stock funds

common

well, ending Novem¬

as

280.5

at

ber

with

contrasted

dexes

1939

the

use

as

level

the

The in¬

of

base.

a

Dec.

principal

values
reached
earlier in the year.
These were
American Business Shares, Eaton
and Howard Balanced Fund, Gen¬
eral Investors Trust, Nation-Wide
Securities and the Dreyfus Fund.
currently

for

1955,

of

of

Concord

$250,000

—

the

being

now

lower

the

under¬

distributors

Fund

reported

includes

17

"balanced" mutuals and 24 "com¬

Designed orig¬
inally for fiduciaries, it also meas¬
ures
separately each month per¬
centage dividend returns from net
investment income

well

as

the

as

payouts representing capital gains

up

Net

of

assets

were

$7,268,989

1955,

up

earlier

78%

By Analyst

in

No¬

sound bal¬

a

dollar

as;

mortgages) and pur¬
chasing power investments (com¬
stocks)

can

ment

the fu¬

to

confidence, A.
Vice-President and

Kulp,

Executive

look

greater

Director

Committee

of the Invest¬
of

Wellington

Fund, stated recently.
A balanced investment program

far-reaching

scientific

such

ments

as

over

Nov.
the

30,
year

said,
adding
that
"these
changes in population and income
have led to

vast increase in

a

This

greatly

for

COMPANY

300 bonds,

investing in

preferred and

common

income with conservation and the

MUTUAL FUND

of

possibility
long-term growth of principal.

and

de¬

services

relatively smaller
employed at higher
caused the great rise

has

wages,
in

con¬

increased

goods

force

business

a

spending

for

capital

investment."

puts

a

reduction

electronics, automation and atomic
energy. This is the dynamic back¬
ground in which the driving force
of

free

enterprise has been given
full play for the last three years.
ATOMIC DEVELOPMENT
MUTUAL

!

^

FUND, Inc.

CcmmJwMt
STOCK

is
a

managed investment

in

a

common

variety of

in activities

investing in diversified

stocks of well-established

folio,"

Atonic Development Securities Co., Inc.
THIRTIETH STREET, N. W.

*

of

common

vides

Mr.

stocks

investment

Kulp

stated.

the

in

a

port¬
It

pro¬

active

growth

of

participation in the
the economy through

careful selection of forward-look¬

;

Monoged and Distributed by NORTH AMERICAN SECURITIES COMPANY

UT TH£ FACTS AND FREE PROSPECTUS




validity

long-term growth of income and principal.

\

WASHINGTON 7, D. C.

"For the investor it supports
conservative

resulting

from Atomic Science.

1033

FUND

companies selected for the possibility of

companies participating
i #

It suggests that the economy is
likely to maintain the rapid post¬
growth rate.

war

designed to provide
A mutual fund

Russ Building

•

San Francisco 4, California

Prospectuses available from Investment Dealers
.

-

or

the above

"Investment Company Managers since 1925"

ing, well-managed, fully competi¬
tive companies which can. develop
and maintain good earning power
and
j

dividend paying ability.

It indicates the need

servative
Wholesale Representatives: Boston

Shares

•Chicago* Dallas*Los Angeles*New York*Washington,D.C.

approach,

growth is not
way

a

1955,

23,

total

the

Selected

of

exceeded

first

American

$50,000,000, for
inception of

since

time

the Fund in 1933.

figures

Comparative

$50,-

are

079,985 assets and 5,164,573 shares

outstanding
on
Nov.
23,. 1955,
versus
$39,551,859 assets and 4,455,113 shares outstanding as of
Dec. 31,

The

1954.

share

per

$9.70

net

contrasted
year
end.
In

at the
this increase

to

value

asset

Nov. 23,

on

$8.88

in

asset

a

income

investment

the

since

end.

year

Puritan Fund, Inc., assets, a mu¬

tual fund

with primary emphasis
income, reached new highs in
the quarter ended Oct. 31, 1955.
on

this

On

assets

net

date

of " the

totaled

Fund

$18,424,131
com¬
pared with $15,127,358 as of July

A

31, 1955, an increase of 21.7%.

Oct. 31, 1954, the net
asset value was $3,012,789.
The
number of shares outstanding to¬
taled 2,843,110 as

for

a

con¬

because

straight-line, one¬

street. One must expect prog¬

of Oct. 31, 1955,
over the July

increase of 27.2%

an

31,
865.

1955 year-end total of 2,234,A year ago on Oct. 31, 1954,

there

only

were

552,396

shares

outstanding.
of

Fund

Growth

Canada, Ltd., reported net assets
at the end of October totaling $7.3

equal to $21.99 a share.
with
total
re¬
sources of $7.1 million, or $20.89 a
share at the beginning of its first
full fiscal year April 30, 1955.
million,

This

compares

Canadian

A

Fund

owned

pre¬

inves¬
tors, Templeton Growth Fund had
dominantly

by

American

73% of its assets in common stocks
at

the end of October,

nadian
and

and

21%

6% in Ca¬

foreign obligations,
in
preferreds.
The

investments

Fund's

great

push behind
through improved
machinery, new processes and the
use of new developments—such as
cost

Nov.

assets

the

demand for goods and serv¬

sumer

ices.

stocks selected to provide reasonable current

a

On
net

Templeton

growth and major
changes in income since 1929 has

"It

ATOM SCIENCE

Mr.

tive

Commi/ieiM
A balanced mutual fund

auto¬

energy,

Fund

figure.

INVESTMENT

electronics,

atomic

and

develop¬

Kulp said.
Population

labor

in

$50 Million

year ago on

created great middle class mar¬
ket, the Wellington Fund execu¬

of

Assets Now Over

investments

and

from

Concord

or
change in a growing
rapidly moving world.

hedge,
and

net

The investor with

with

of the investor's

power

dollar—whether it be for inflation

capital gain distribution
of 50 cents per share was paid in
January. Three dividends totaling1
20 cents a share were paid from

over

from

purchasing

value,

140%

over

liquidity and defensive
are
satisfied, the
balance
can
then
be
properly
placed in selected common stocks.
They should be companies which
have the
ability to protect the

addition

Called Best

mon

cer¬

that

with

Mixed Portfolio

between

mort¬

or

both. Having made

requirements

was

(bonds

bonds

in

invested

tain

stock" funds.

mon

at

November, 1954.

ef¬

Fund's

Allyn &

Chicago,

be

Selected American

companies, four of them balanced

index

conservative

investment

funds, topped the preceding year's

peak

"the

that

approach requires, first of all, that
adequate portion of an account

an

30,

.

Five of the open-end

produced by

through

230.2

Sept. 23, the

on

year's preceding closing high. The

mand

invest

stood

pared with 231.4

mation

were

Williams,

C.

national

vember

economies

fected,

Mutual

of

Funds, the average

Moyer

Fund.

Sales

in management fees together with

'

Index

tionary trends and also partici¬
pate in the benefits of rapid and

Director for A.

1
■;

Address...

Long

should be better able to cope with
world wide social changes, infla¬

Company,

President, said that-"the reduction

Name
*

prospectuses

D 143

As measured by the Henry Ans-

dramati¬

The Wellington Fund executive
declared

gages—or

according to figures released to¬
day by W. George Potts, Concord

daily

$125,000,000.

Organization and the shares of your

your
ten

me

high

reported at $2,758,184 — up
330% from the year earlier figure,

net assets;

Company

Fund's

the 11 months ended Nov. 30,

% of 1% annually on the next
$50,000,000 of average daily
net assets;

COMMON STOCK FUNDS

the

were

the

Estates."

Sales

$75,000,000

BOND, PREFERRED AND

impairing

Concord Sales At High

Jan. 1, 1956, is as follows:

Custodian Funds

The Keystone

of "Trusts and

ture

net

on

ratios significantly with¬

standards of managerial services."

of

of

excess

scale

excess

50%

Eisen¬

hower, according to the indices
published in the December issue

ance

427,000 at the end of October.

net assets in

President

entire in¬

Some

advance

disappear.

distributions.

investment in productive plant and
equipment have been reported
for 1956 at amounts
substantially higher than in 1955. Our index
of sensitive
prices, after minor fluctuations, has risen to the
highest figure of the year."'

on

of

since

accentuated

"Employment

"Retail

volume, reflecting the rise in incomes.

by 25%

September just preceding

illness

The

may

expansion

almost

funds

still.

will

cally, while others will decline in
importance and some may almost

year's highs, reached

September peak of 284.2.
still

are

than it did several months
ago,

maximum

held

buildings,"

inventories indicates

on

the rate of advance.

summer,

year.

residential

of

made

no
dangerous build¬
weight is given to the sales-inventory
ratios.
Credit in various forms has been expanded
greatly, and
may become burdensome if business begins to shrink.
"Expected difficulties have not become apparent, however,"

the

Cash, U. S. Government securi¬

construction

being

up largely in other areas,
signal of prompt recession, though it is an

a

evidence

The economist

dropped

the

"is

development.
other indicators

Hubbard

late

the

if not too great

even

up,

reflects

$32,346,000 redeemed by investors

same

"Many

pur¬

$1,103,919,000,

redemptions

November

pared

'«

in

stated,

in itself

not

end-cycle

year.

Share

the

is

Dr.

investors through Nov.

amounted

record

and

Share

October.

decrease

Hubbard

$91,-

against $862,817,000 for all of 1954,
a

"The

with

compared

in

528,000

tion, Broad Street Investing Corporation, National Investors Cor¬
poration, and Whitehall Fund, Inc.

statistical

For the sixth consecutive month

chases by

Dr. Hubbard's findings were included in his December report
business situation prepared for Tri-Continental Corpora¬

Dr.

in

mutual

the

bacher

the

on

member

companies
as

unsettlement."

new

number substantially
any entire previous

year.
As of Nov.

consuming

ability of the people, their apparent willingness to spend freely,
and the absence so far of any early and
positive indication of

investors have
accumulation

1955,

1956,

active well into

very

active business "on the high income and well diffused

11

first

the

that in

105,452

opened
in

on

revealed

continue

in the opinion of a New York investment company economist.
Dr. Joseph B. Hubbard said he based his view of continued

tion of Investment Companies.

tion

will

business

touched

individual

and

A very few situations

stand

dustries

principal value of

average

"balanced"

Trust Economist Sees Good Year Ahead
American

the economy

both

High

By ROBERT R. RICH

new

months

companies.

varying depths and durations in

will

plans for the

November

Reporting

of

Index Grazes

Mutual Funds

regular purchase of mutual fund
shares was at an all-time high in

11,495

punctuated by set-backs

Henry Long

Reach Peak
The popularity of

to be

ress

Fund Plans

Thursday, December 15,1955

..

.

by industry
important concentrations
in metals and mining
17% and
forest products 14%.
showed

Wellington Sales
Hit New Record
For October
New investments in Wellington
Fund

shares last month

largest for

any

the

were

month of October

in the history of the Fund,

topping
October, 1954, by a rec¬

sales for
ord

34%.

A. J.
The

tional

Wilkins, Vice-President of
Wellington
Company, na¬
distributors of the $470,->

000,000
that

-

Fund,. stated

Wellington

October

sales

reached

a

compared with
$4,902,197 in the like month last

record

$6,566,415

year.

For

the

year

to

new

in-

page

150

date,

Continued

on

Number 5490

Volume 182

Continued

from

.

.

.

other

This growth

top coats.

in the number of cars on the road
has

reflected

things

many

—

im¬

provements in the vehicles them¬
selves and in methods of produc¬
tion, increased population, higher
incomes,! availability
of credit,
and the shift to suburban living.
Indeed in 1954,

—people buying their first car or
first "second car" — while

of the over-all sales
has brought down the
of cars to people from
1

only

part

picture,
ratio

in 1940 to
1 for every 3.3
of the popula¬
tion at present. In California the
for

4.8 persons

every

ratio

is

One

for

1

of

out

In

owner.

is

ten

a

there

addition,

two

earth's

mobile

shift

about

$10

billion

administered

is the

billion

$75

over

in!

fifths

small,

seems

housing

new

construc¬

fall of one-third in plant

in¬
ventory at the rate of $5 billion
a
year
and to start selling off

Merely to

inventory

moving

six

only

years,

asking

The

are

wide

one

that

divergence

a

causing

are

Economy?

force

billion
ices

so

be?

booming,

puts

rate

same

66,000,000

labor

quickly,

so

the

at

(or
em¬

computation here is simple—

some

apart in
cannot help
strains
and

the

what

accumulating

ployment by 1,600,000 man-years).

one

points

30

over

stop

1,600,000 men out of jobs
more
accurately diminishes

identical

an

of

this year gross

private do-

billion

$60.1

Have

total

a

thousands

about 19% of
($320.7 billion),

will

or

income

national

"quickie

write-offs,"

in the
about $392

persons

produced

worth

of

goods and

serv¬

annual basis) during
the third quarter of this year or
about $6,000 per man-year. A ten
(on

billion

an

shift

in

from

inventories

plus $5 billion to minus $5 billion
thus means
1,600,000 less man-

to

business

that

pace

a

develop

invest-

cannot

be

start

backs

at

peaks

Inexperienced

(3)

»

stimulate and

to

of

thou-

scientists, mathematiengineers,
doctors,
etc.,

merely to keep abreast of
Russia.
It
proudly and
glamorizes

the

un-

precedented profits made by the
largest automobile manufacturing

stock-

corporation in the world while its

profits,

schools, colleges and universities,

confidence.

investment

and

of

business

prices,

on

teachers

trained

hundreds

the

justifiably

speedometer most carefully since
almost
invariably business setmarket

teachers

of

Soviet

One must watch this

maintained?

of

from

come

needed

price groups, starting from
base period 1947-49,

finds

of auto¬

to reflect that in the second quarter of

school

its

pays

the average considerably less than
it
pays
its
auto-workers,
and
wonders
where
the
scores
of

cians,

of

when

It is startling

mestie investment reached

and

cars.

It

ment

indicate basic

And

000

to

overstimulated

in the 1930's.

forces.

95%

sands

yet it is equal to a drop of four-

price, and the

Prices like gauges

economic

nearly

only $900 million.

sides

the amount

of

the

price-segments

the economy

all

on

facilities

hospital

75,000 class rooms, but has the
plant capacity for nearly 10,000,-

over-

equipment expenditures.

the flexible

complaints

adequate

amid

optimism, and other factors again

was

or a

tween

By 1932,

years

of excessive capacity,

by

objective coin of the realm as is
the family car.
The wealthiest
nation in the world urgently lacks

accompanied
about $87

of

three

fell

bil-

about one-half

be

to

seems

149

important measured in the cold

as

plus $5 billion to minus $5
billion which in a total inventory

and what the ultimate impact may

is

both instances the inven¬

In

and

Spots in the

business

When

in

invento¬

tion

stresses

Soft

shifts

in

from

price structure likewise
economic
and
political
shocks, the most notably being
the
well-remembered
split
be¬

year.

There

Are

sur¬

bring

production may be some¬

a

rifts

investment

the

business

thing like seven million automo¬
biles

Such

business

in large

were

small

relatively

than

less

tion

In

$16

some

income

billion—a ratio of 18%.

gross

invested

seem on

tory

readjust
in
the

suddenly

crust

themselves.

half to five million cars a year.

Thus the "normal" level

again in 1954

business

that

of

blocks

call

face

fault

along

occur

lines—where

of four and

replacement demand
a

earthquakes

they

part due to what

Price

Structure. Californians know

2.5 persons.
multiple car

every

and

There may

in the

what

provides

existence.

investment

of

national

a

and downs.

ups

ries.

Cleavage

in

for

reason

1929, for example,

The small readjustments of 1949

well be.

their

in

ness

to

need

may

slow down somewhat?

(1)

lion

private domestic investment are
extraordinarily important in busi¬

economic gauges

activity

business

demand"

"new

basic

its

changes

showing possible sources of mal¬
functioning in the economy? Are
there stretches where the pace of

57% of new house
movement to

The

suburbs.

the national income that

There is almost complete
unanimity among economists who
study business fluctuations that

ahead? Are there

reflected

building
the

An¬

that

ment.

And the Look Ahead
than

Investment.

variable

always bears
close watching is business invest¬

The Economic Scene
sold

Business

(2)

16

page

(2673)

The Commercial and Financial Chronicle

in

,

Consumers

unequal

battle

with

inflation,

the real income of their ad-

se?

ministrators and professors adso slowly that relative to
is
that
of consumer borrowing other groups, they are below the
and savings compared with dislevel of 1904!
posable personal income. During
Judged by the dollars spent,
the first six months of 1955 for c.an it be that most people beexample, disposable personal in- lieYe that the economic and ideocome
increased
$11
billion
or
logical cold war will be won by

in

Buyer's

a

Market.

Another

requiring careful checking

gauge

vancing

nearly 4% yet not an extra nickel
Relative

saved.

was

the

saved

amount

of

levels

8%

nearly

low

new

to

lon&> sleek, garish, high-powered,
chromium-plated cars? Or will

from

5.7%,

to

1949.

since

income,

declined

a

Consumer

the outcome depend on the charactef»
scientific
training,
expcrtise, and productivity of

American
managers,
scientists
and workers? If the latter, why
Once in a while one finds busi¬
of this year compared with $23.7 the neglect? Are American standnessmen
and
financial
writers billion in August a year ago, an ards °t value which determine
even
wish
the
question
raised
whether
vulnerable
who appear to argue that busi¬ increase of nearly 18%. So rapid the
spots exist.
apportionment of consumer
Their sentiment which they con¬ prices of industrial products other ness investment is never exces¬ a rate of increase per se is not becomes and spending geared tc
than farm products and foods are
sider disloyal for any one to fail
sive, as if there never could be disturbing,' «• provided
that
the national security needs?
not only cannot see a single
cloud on the horizon, but do not

many

From

level

a

of

100, wholesale

prices in general have moved up
to 111. But farm prices are down
to 86.7% of what they were while

years

of work.

reached
the
record
of $33.6 billion in August

borrowing
levels

up
to 118.7.
This is a 32 point too much of our national income
"There are no
quality of such' consumer loans
spread. Net farm income has de¬
put into railroads, steel facilities, has not deteriorated, and provided
No factors of any
clined nearly a third during the
pr
construction.
Yet obviously that production and income inimportance are out of line. All
last four years from roughly $16
no
that is needed is confidence and
capital investment has justi¬ crease in somewhat similar probillion in 1951 to $11 billion now.
fication
or
•determination to exercise the po¬
meaning
except in portion.
But disposable income
Though farmers constitute 16% of terms of the increased amount of
litical witch-doctors of gloom and
rose
only 4%. Could it be that
the total population, their share
finished
doom."
goods and
services the attractive new cars skillfully
in what is produced for all of us
thereby made available. Railroads advertised,
induced many conl, Yet it is precisely when the to
enjoy
has
been
cut from in the
past have been built so far sumers unwisely to mortgage and
•automobile is functioning beauti¬
roughly 6% of all personal income ahead of
existing traffic that they spend now next year's anticipated
fully at 60 miles an hour that the in 1951 to less than 4% this year.
And what
happens if
-experienced driver looks farthest Even if they constitute only a became "streaks of rust in the income?
ahead along the road, most care¬
wilderness."
Excessive
capacity anticipation falls short of realiza-

to share, is:

fully

•danger spots.

sixth

watches

fully
makes
tires

are

Are

and

gauge,
brakes

every

and
in excellent condition.

there

indicating

his

that

sure

;

economic

detours

roadsigns
curves

or

all

of

and

lieved

such

consumers,

of

gravation

imbalance,

prolonged,

ag¬

unre¬

tion?
has

ulti¬

may

one

Highly

known

to exist

in

more

have

important, therefore, is

cently

capital investment to

—1955—

experienced until re-

never

the joys and hazards of a

buyer's market. The typical young
housewife
in
our
newly - built

Gross Private

.

1953

1954

1st Qr.

2nd Qr.

3rd Qr.

257.3

364.9

357.2

375.3

384.8

392.0

9.3

32.5

51.4

46.1

54.1

60.1

60.7

goods and were glad to get them,
Instead
of sales resistance they
showered

13.3

16.0

16.4

16.2

24.4

22.2

21.5

23.7

25.4

1.5

—3.7

1.5

4.2

2.7

188.2

250.1

253.5

261.0

267.1

272.0

180.6

230.1

234.0

245.8

250.5

256.5

2.9

7.6

20.0

19.5

15.3

16.6

15.5

48.1

140.9

209.1

207.3

213.1

219.5

224.3

4.2

17.8

0.4

—2.7

67.6

Equipment

Change in Business Inventories

11.9

70.4

Producers Durable

8.3

2.7

Residential Nonfarm Construction
—
.

mm

mmmm

mm mm.-

(Billions of Dollars)

Farm Income

4.3

12.7

12.2

11.9

11.5

11.0

10.5

Corporate Profits Before Taxes

6.4

26.2

39.4

35.0

40.9

43.0

5.0

Corporate Profits After Taxes__
Government Purchases of Goods & Services

Production

15.8

18.3

17.8

20.4

21.2

t
t

13.3

43.6

84.5

77.0

75.8

74.9

75.5

134

125

133.3

137.7

142

189

175

193

198

204.7

99

118

116

121.7

126.7

125.3

50.1

99.2

110.1

110.3

110.4

110.2

111.0

59.4

101.8

114.4.

114.8

114.3

114.2

114.6

77

100

86.7

86.7

84.3

277.7

292.9

312.3

58

97

48

102

66

Wholesale Prices (1947-49 = 100—.
Consumer Prices (1947-49 =

Nondurable

J.

Production

Equipment
1

•

100)
Farm Parity Ratio (1910-14=100)___
Stock Prices

92

193.3

127.7

100

(1939=100)

89

229.8

(Millions)

Employment (Millions)
__
Unemployed as % of Labor Force
Average Weekly Hours
Average Hourly Earnings (Dollars)——_

55.2
45.8

j

63.8

58.7

17.2

5.5

37.7

*

64.5

63.4

65.5

67.3

62.2

62.1

61.2

60.2

62.8

65.2

2.5

5.0

5.2

4.1

3.4

40.5

39.2

39.7

40.4

40.6

41.0

.63

1.40

1.77

1.81

1.85

1.87

1.89

23.86

54.92

71.69

71.86

74.67

75.78

76.86

(All Manufacturing)
Average Weekly Earnings

Money (Billions of Dollars)
Total Loans and Investments

(All Commercial Banks)
Total Consumer Credit Outstanding
Corporate Bond Yields % (Moody's Aaa)
Total Privately Held Money Supply
Demand Deposits Adjusted

Deposits

*Source of data:

Report, December

7.2
3.01

120.2

145.7

29.5

17.1
2.66

3.20

155.9

30.1
2.90

154.8

155.5

selling, and
implemented by

the

scientific

newest

of

devices

psychology. Like natives
insufficiently immune to the com-

modern

youthful

some

29.7

31.6

2.98

3.03

33.3
3.10

63.3

169.8

200.9

209.7

206.9

207.1

214.4

85.8
57.5

102.5
70.4

106.6
75.3

104.6
75.8

104.0
76.3

103.9
77.3

Indicators, Joint Committee

1953, Washington, D. C., and their October 1955 issue

on

the Economic

of Economic Indicators. fNo data.

of

lack

for

sales

buyers

resistance

have unwisely handled

may

their

income.

future

and

present

oM

instance,

t ey

a^e

enough of their income for

aside

education

the

consumer

wise

of

thoir

children.

possible that the resultant
patterns of consumer expenditure
have
warped the stability and
Is

it

VfVHw6
1949, for

national output. Si e

example, the production
while that

non-durables
156.8

29.8
27.1

Historical and Descriptive Supplement to Economic




Along came the buyer's market,

u!

40.7

ing

which under condesigned
to strengthen,

program

a

ditions"
free,

will

enterprise

competitive

alized that over-full employment

sources

new

2
doubled

(All Manufacturing)

total of 66,882,000. The government under the Employment Act
of 1946 is devising and maintain-

their unemployment.

of

outgo

renewed emphasis on

TT

—

or

mer-

money.

For

Employment
Civilian Labor Force

the

controlling

their

on

municable diseases of civilization,

Prices

billion,

$218

70% of total personal income ($305.0 billion).
The wage
and salary workers comprised 76%
of the total civilian labor force,
numbering 50,300,000 out of a
over

like excessive investment not only
can but at times does exist.
It
chants
and
auto dealers/ They too generates economic stresses
nonetheless saved a large part of and strains with the nemesis of
their income partly for patriotic readjustment. The economy needs
reasons,
mostly
because
goods employment flexibility, both seawere
not available, and only to sonal and technological, for
a small degree as a result of firm
steady growth. Seasonal peaks
adherence to a standard of values are bound to result in seasonal
smiles

seductive appeals

(1947-49 = 100)

Industrial

Transportation

constituted

year,

ranch- aim so far as practicable to pro¬
style house, do-it-yourself gad- vide a maximum of employment
gets and station-wagon, grew up opportunity, stable growth, and
during or after the war when real national income,
consumers
had to scramble for
But the fact may not be re-

91.1

Product
Domestic Investment

it is perhaps the most important,
Labor income in August of this

with

complete

1949

(Billions of Dollars)

Gross National

Time

today

buyers

-

1939

Investment

Total

consumer

suburbia,-

1*

Where Are We Now?

item-

Income

Most

large industry.

the ratio of

the entire economy.
TABLE

been

than

mately hurt not only the farmer
but

(4) Jobs Hunting Workers. Another gauge on our economic instrument panel is the percent unemployed. Of all measuring rods

other things

raw

materials.

.

costs an(1 prices begins to simmer
when a level of more than 95%
js reached. In Sepexample, there were
f.th
fQrce un_

empi0yment
tember
b

t

3

^

2'%

x

be

for

±

of

Buyers

^ginning

labor may

to scrape the bottom

the barreb At such times they

without

themselves

and

efficien*

growing boys and

#

Thus postwar experience mdicates that inflation of wages.

adequate

(food, clothing

to the health of

changes in demand due to techinnovation such as the
shift from carriages to cars are
bound to leave obsolete plant and
unemployment in some areas
oven though elsewhere there may
aoute bottlenecks in labor
supply, in plant capacity and in

more
for consumer

of prime importance

New industries,
of supply and

le*ting

of transfer in
of skills and

margin
the

t

best suited to

Jx

.

their
,

,

re-

,

Wages tend to m-

quirements.

faster than productivity.
Today for each dollar currently Not only do high labor turnover
spent on schools of all kinds in and voluntary quits increase costs

girls) has increased only 25%.

the
for

United
new

States

$1.60

is

spent

automobiles and an addi-

tional 45 cents for roads.

Educa-

crease

fout

there
■

additional

the

is
.

,

_

_

ex7trA

Continued on page 150

150

(2674)

tained

Continued from page

growth that
forged in the last 25
years.
Flexible monetary, budget
and tax policies, encouragement
of
higher living standards, en¬

149

have

The Economic Scene

stability and

forcement

of overtime.

pense

of

The number

worked

the average

hours

durable

the

in

on

industries

goods

September was 41.6. Antici¬
pating
such
incremental
costs,
producers raise their prices.
Though profits on goods already
processed at lower costs receive
a
temporary fillip,
volume
dwindles as goods are priced out
of the market. The economy hits

years

in

dip in the road.

a

Over-Optimism. One of the

(5)

of

truisms

business

that

is

busts

when least

recessions

tised
And

and

booms

usually come
expected. Well-adver¬
they

happen.

rarely

do unanimously announced

so

booms or continuations of a boom.

The

observer today

impartial
feel

would

much

continuous

more

of

movement, if

upward

there

only

sure

were a
of bearish forecasts

small supply

jarring busi¬
ness
thinking into taking pre¬
cautions, urging them to avoid
■unusually risky commitments, to
keep
•

commercial and
decision-maker
would

industrial

and

financial
but

his

use

each

If

lookout.

sharp

a

good |

own

judgment

independently upon the fragmen¬
data and facts indicating
what lies ahead, there would be

In the crucible

of such debates cumulative errors

eliminated.

be

tend

to

basis

is

laid

wise

for

of

sis

But

and

at

the

on

thick

a

in their

facts

is

result

own

Herd

effect.

research

lemming

psychology

stam¬

pedes
decision - makers .< toward
over-optimism
and
overinvest¬
ment
in boom times, excessive
mass
pessimism
toward
mass

1930.

In

pages

Business

damage.

amply demonstrates that
is

turn

nearest

confidence

business

unanimous
the

even

history
a

down¬

hand

at

when

becomes
of

so

that

boisterous

and

mention

possible

weak

spots in "the economy is
avoided, derided, or suppressed.

Where

Do

Although
which

Experts

the
in

Shall Be

Five

at times
records

new

slow down, such

We

the rate at
set

may

periods of read¬

justment should never induce the
business and government man¬
agers to take their eyes off the
Some

road

distance

ahead.

In¬

vestment programs today are de¬

projections for 1960.
trends of growth

their

piled
If

long-range

will enjoy:

years

Sixty-nine million jobs,
nearly 10% more than, in 1954,
each worker producing a fourth
more
than in 1950 with a 36^

50%

with

people

of

ago and
70 years

over

persons

more

age.

wLh

Thill, 208 East Wiscon¬
He was previously

Avenue.

with The Marshall Company.

-

Clarey

of

than last year and over
5% higher than the present rate.

capital investment
of $62.5 billion or 37%
higher
than last year, though but only
4% above present - levels.
(4) A

E.

Fla.—Charles
Hirshey has joined the*staff of

Mortgage
sota

Co.,

Inc., 530

pend on the relative accuracy of

J.

State Bond &

Havill

BEACH,

three

ure

and

times

half

a

the

which

(6) An average family income
taxes
of
$6,180
and
a

before

in

Utopia.

connected

done much to attract

Century Fund have had that
cusation
when
a

thrown

North

Minne¬

Television

ten

years

them

ago

in

boom

by" that time!had

gone

7%

beyond

the

Fu

the

a

new

Shares

Management Corporate

Sales
ended

in

the

fiscal

ji

year

totaled $50,985,908 as coj
cc

sales of $124,000 in Octob
$783,000 in its first six tnohl
Oct.

31, 1955.
fund, launched

assets

closed

Notes

NSTA

The

Boston

Boston, Mass.

Securities

Traders

Association

October

last

$111,000
with

M

in

cai

$766,00Q

During October the fund

ma

investments in Great Nort

ern Paper and High Voltage
gineering and added to its holdii
in Air Products and Algom Iji

BOSTON SECURITIES TRADERS ASSOCIATION

annual Winter

of

resources.

new

nium.

will

hold

their

Dinner, Friday, Feb. 10, 1956 at the Parker House,"
Members of the Committee include:

James J.

Lynch, Paul D. Sheeline & Co., Chairman; Richard
J. Corbin, Blyth & Co., Inc.; Clive Fazioli, White, Weld & Co.;
Henry R. Griffin, A. C. Allyn & Co., Inc.; Davifl H. MCay, May &
Gannon, Inc.; Fredrick S. Moore, New York Hanseatic Corp.;
C.

Nowell, F. L. Putnam & Co., Inc.; Walter T. Swift,
Kidder, Peabody & Co.; and Albert G. Woglom, Clayton Secu¬
rities Corp.

Fund Starts Plan
A

periodic investment plan w
announced by Donald F. Bisht
President,
Science
&
Nuck
Fund.
Under

the plan an individi
begin to accumulate shai
recently organized muti
fund with as little as $25, and c
may

of the

tinue the accumulation with

SECURITY

TRADERS

ASSOCIATION

The Annual Business Meeting of the Baltimore
Association was held at the Southern Hotel

Security Trad¬
on

Dec.

9

at

5:00 p,m.

The

Nominating Committee composed of Charles Gross,
Chairman, and H. Mitchell Bruck, Stein Bros. & Bryce; William

su

sequent deposits of as little as
monthly or $50 quarterly.
The Provident Trust Compa
of Philadelphia has been nam
depositary for such purchaser*'

Electronics Fund
Makes

Report

*i'

Electronics Investment Corpc

ation,

mutual investment fui

a

which made its first continuous

fering

they made
The postwar

forecast for, 1950.

Electronics

-

gross sales in its fiscal year end
Oct. 31, last, ran 147% ahead

responding 12 months of 1954v

ac¬

at

investors

pared with $20,593,101 in the

Twentieth

the

of

i

with Frank B. Bateman, 243 South

Dewhurst and

Fred

But

has

mutual fund shares."

with

ers

hisr associates

funds

been affected by the stock marl
action during recent weeks,

The

year.

total

con

mutual

Science & Nuclear Fund rep©

BALTIMORE

(7) A

stro

gross

spendable per-household income
of $5,600 a year, up 5% from last

before

on

increase

c

May 13, 1955, reports ;
in net assets from $1

150,000 to $10,568,235 as ©f Nc
Shares outstanding are 2,301

30.

with

363

actually
estimates

share

of

a

net

$4.59,

value

asset

and

an

p

offerii

price of $5.02.

tations set forth by the corps of
experts that published their sec¬

dent, stated that the electroni
industry is now developing
many new devices for all phas
of industrial production and di
tribution that the science of ele
tronics must be viewed a3 tl

as visionary in 1945. Per¬
haps when 1960 rolls around, the
actual performance of the" econ¬
omy will again exceed the expec¬

ond estimate of "America's Needs
and

Resources."

At any rate

their estimates

are

the best available and merit most

careful,

open-minded

in

be

considera¬
doubt, that
attained, provided
little

business

there

ment

is

be

and

in

govern¬

continued

alert¬

repeated scientific appraisal,

and

prompt
many
tools

action to use the
for achieving sus-

QUOTATION TABULATOR WANTED
We have need for party

that

can

read New York

American Stock Exchange Ticker Tape to a&sist

quotation tables; full

or

part time

job. Please give full particulars in confidence. Box
S 1215, Commercial & Financial

Place, New York 7, N. Y.




dence

another
"investor

are

that

County Road.

28

Street.

Richard

output of 1950.

r<

utive Vice-President of Televisi

Fla. —Jackson

become

has

the first

previous fiscal yc
high for the peri<
according to Paul A. Just, Ex(

vSpecial to The Financial Chronicle)

PALM

Charles

Charles A. Bodie

Joseph G. Strohmer

John

T.

Yeager

J.

Herr, Alex. Brown & Sons; Harry J. Niemeyer, Robert Garrett
& Sons; and David L. Pindell, Lockwood & Peck & Co., submitted
the following slate, which was voted into office:
President: Joseph G.

Strohmer, John C. Legg & Company.

Vice-President: Charles A.

Secretary: Edward H.

Miller, George G. Shriver & Co., Inc.

Treasurer: John T. Yeager,

Chronicle, 25 Park

E.

Salik,

fund

pres

significant advance in Ame
today. He added that the co:
sensus of opinion among leadii
industrialists indicates the ele
most
ica

Bodie, Jr., Stein Bros & Bcyce.

expiring 1959): William
C. Roberts, Jr., C. T. Williams & Co. Inc.; E. Clinton Bamberger,
Baumgartner, Downing & Co.

"Computers,

Points

(Capt), Gold, Krumholz, Wechsler, Gersten.j._____ 45
Manson (Capt.), Jacobs, Barrett, Siegel, Yunker
38
Krisam (Capt.), Farrell, Clemence, Gronick, Flanagan.r.
36%
Meyer (Capt.), Corby, A. Frankel, Swenson, Dawson Smith. 35 Vz
Growney (Capt.), Define, Alexander, Montanye, Weseman... 34V2
Bradley (Capt.), C. Murphy, VoccQlli, Rogers,. Hunter
33^
Barker (Capt.), Bernberg, H. Murphy,
Whiting, McGovan... 31"
Donadio (Capt.), Brown, Rappa, Seijas, Demaye
31
Leinhardt (Capt.), Bies, Pollack, Kuehner, Fredericks...... 30
Leone (Capt), Gavin, Fitzpatrick, Valentine,
26
Greenberg
Topol (Capt.), Eiger, Nieman, Weissman, Forbes..
25
Kaiser (Capt.), Kullman,
"24
Werkmeister, O'Connor, Strauss
200 Point Club

5 Point Club

Jack Manson

automation,

semi-conductors

an

are, among

tl

in this "antic
pated increase," Salik stated.

SECURITY TRADERS ASSOCIATION OF NEW YORK

Jack Manson 224

mo

than double in the next five yeai

important

Serlen

will

tronie business volume

Baker, Watts & Co.

Board of Governors (Three year term

Team

up

shares

indication

to set

Security Traders Association of New York Inc. (STANY)
Bowling League standing as of Dec. 8, 1955, are as follows:

in making

Fund

those

Joins F. B. Bateman

ULM, Minn.—Kenneth J.

over

Wellingt

PARK,

Federated Securities Co.,
North Orlando Avenue.

(Special to The Financial Chronicle)

gross

(5) An electric power output of
1,400 billion kilowatt hours, a fig¬

ness,

or

*

(Special to The Financial Chronicle) " * '*•"

WINTER

increase

the contrary, the 'downs and p
of stock prices
appear to ha

higher

de¬

foresight

connected

Gross National Product
$413.5
billion,
or
one-sixth

will

and

sin

become

(3) A

both

vision

has

school

more

children than five years

35%

fail-

the

MILWAUKEE, Wis.—Carl Raymore

Lewis D.

shai

an

Mr. Wilkins stated that the
ord October sales of

(Special to The Financial Chronicle)

With State Bond & Mtg.

Bawek is now with

Wellington

nearly $6,000,000

(Special to The Financial Chronicle)

J. Ryan

in

$56,723,198,

months of 1954.

With Lewis D. Thill

ended

success or

programs

totaled

(2) A population of 177 million

can

such

Joins Keenan &

vestments

and

they

of

$540 billion level by

Building.

wage.

years

ure

cade

Co., Cas¬

week, and 10% higher real

hour

buy

The future

a

Mutual Funds

affiliated

With Federated Sees.

NEW

(1)

There

hence.

and

become

1965.

continue, the United States in five

tion.

and fifteen

years

and

MINNEAPOLIS, Minn.—Robert
has become affiliated with
a
group
of business economists
Keenan & Clarey, Inc., McKnight
under the leadership of Dr. J.
Building.
Frederick Dewhurst, have com¬

termined by what the public will

five, ten,

statesmanship both in
in government will
carry this nation
forward to a
$400 billion level in a couple of
business

has

with Donald C. Sloan &

derided

Say

Years?

are

all

rigorous attention
to the development of all the pro¬
ductivity of which our superb
manpower and natural resources
are
capable — coupled with wise

in

in

1,148

volume,

consumption
up
24.1% with airlines doing 187.4%
more
business, schools at 101.4%
pulling in of business sails and
medical
insurance up
battening down the hatches when increase,
travel 53,7%
business slides off.
Once under 60.6%, foreign
"way, such herd thinking is hard higher, recreation 36.3% and soon,
to head off from wreaking con¬
To
many,
these figures may
siderable needless, bootless eco¬ appear tb picture an unrealistic
nomic

laws,

probable

on

length, entitled, "American Needs
and Resources, A New Survey,"

the relevant
business. The

economic

an

directly

conditions

economic

of

basis

bears

that

antitrust

PORTLAND, Ore.—Kenneth K.
Kraushaar

solid

A

plans

unfortunately opti¬
times pessimism is
highly contagious. It infects the
thinking of many others who sub¬
stitute the analysis of some col¬
league whom they greatly respect
for their own independent analy¬
action.

mism

most

foundations, the Twentieth Cen¬
tury Fund, has but this spring
published a most careful study

tary

varying opinions.

the

of

one

American

of

the

(Special to The Financial Chronicle)

economic

Fortunately,
eminent

five

outlook

the

then, is
ahead?

What,

today.

exercise

businessmen

above

and

And the Look Ahead

of

Continued from page 148

Joins Donald C. Sloan

been

factors

added

Issues

to

the

portfo

fund's

1955, are: Eastman Kodj
Motorola, 3,030; Int. T
& Tel., 7,000; Daystrom, Inc., 5,003; Ge
eral Precision
Equipment, 3,003; "Stewa
Warner, 5,000; Standard Coil, 8,003; a
Collins Radio Class B, 7,500.
since

1,000

July 1,
shares;

Additions made to previous

ing

the

shares

Aviation;

2,500

three-month

of

ACP
500

period

Industries;

Borg-Warner,

Columbia

holdings dt
were; 2,0
1,030 Bene
1.QJ0 Clevi'

Broadcasting

2,000 consolidated Engineering^

Class *
530 Cor

ing Glass Works; 3,000 Garrett; 1.303 Ge
eral Electric;
200 IBM; 2,500 Magnavc

1,000

Minneapolis-Honeywell;

500

Minr

1,030 Nor;
Otis
Elevate

sota Mining & Manufacturing;

American

Aviation;

1,000 Philco;

500

150 Phillips Gloeilampen F;

brieken; 500 Radio Corp. of America; 3,0

Raytheon;
1,500 Sylvania;
800 Weste
Union Telegraph and 1.000 P. R. Mallo
4Vzlr convertible preferred. No stock hoi.
ings in the fortfolio were red"e°d or d:
posed of during the report period.

lume

Number 5490

182

.

.

.

The Commercial and Financial Chronicle

Hitting
This

Report
panning through the

it

the

issue

new

balance

forded by

appears

who

yers

be

marketed

close

of

with

in

which

is

From here

for

only

Zjid

little

ve

such

if

a

is

interest,

Ford

in

in

just

the

situa-

general

the

ing

issue

market, it
well that the calendar

as

new

their

and

eeded

; which

entories

the

he

market

yers'

affair,
in

are

material,

w

a

o i

close

of

to

through

pressure

s

up.

a

„

several

consequence

offerings have been turned
se
by sponsoring groups, and
ding
for
themselves
have
tied
back
one
to
two
points
m
the initial offering prices.

BOSTON,
Ross

have

stors

affiliated

and

BOSTON, Mass.—Leon Semonian, Jr. has joined the staff of
Palmer, Pollacchi & Co., 84 State

as

result

a

most

in

w

ji

h i

c

g a n

"ering

and

each

osc

issues

eek

the

n

loose

and

syndicate

to

debentures,

this

early

bid

which

intended

that

The
a

of

Board

Meeting
Two

30.

course.

Edison

MIAMI,

Co.'s

England Gas

to

Fla.-^Martin

DIVIDEND

j

.

The

,<

Trustees

35

NO.

are

declared

have

a

the

common

of

shares

the

1956 to shareholders of record

at

primarily

earnings

ates

H. C.

primarily in Westchester.

Other members of the debenture

The

has

is

engaging

business
Third

from

in

Board

offices

Street.

at

217

of

of

payable
January
2,
1956, to stockholders of
record

OTTO

DOME

A dividend

of twelve

and

one-half

(12 Vfctf) a share on the out¬
standing common stock has been de¬
clared payable December 28, 1955,
holders of record at the close of

J. V.

W.

are

(15(2)

cents

the

on

at

the

19,

The

outstanding

MINES

DIVIDEND

Seventeen
(in

and

cents

Common

a

Canadian

NO.

ALLYN

Treasurer

5,

The

19,

(17V2C)

the close

December

on

CAPITAL

of

business

will

not

15,

THE

pad Trewvrer

*

M.

ATCHISON,
FE

WOODENWARE

York,
Board

declared

1,

-V

9

NOTICE

Y.,

of

November 30,

dividend
share

on

December
business

of

a

1955 the board

Michigan

Cents

No.

29,
cn

per

1955

to

December

shareholders
15,

1955.

L. G.




declared

record

at

the

close

record

at

to

the

CLARK, Treasurer

iflmnusu corporation

L3LJj

CASH

the

books

of

also

Board

Dollar

One

($1.25)

Stock

for

The Board of Directors has de¬

on

payable

this

day

a

Twenty-five
being Dividend

Capital
March

Stock

1,

$1.06M

able

the 4]4

addition,

of

Three

Dollars

Common

payable

for

($3.00)

Capital
January

Stock
13,

the
per

of

1956,

of record at the close of

16,

1956.

the Board declared
174,

No.

27,

an

preferred stock,

pay¬

of

50

share

011

the Company,
stockholders

to

business

December

1955.
D.

C. WILSON. Assistant Treasu^r
120

Broadwav, New York 5, N. Y.

STOCK

per

DIVIDEND

addition,
was

a

3% stock

declared pay¬

January 11, 1956,

stockholders of record

at

to
the

to shareholders of record Decem¬

close of business November

ber 19, 1955.

30,1955.

John H. Schmidt

The above cash dividends

Secretary
December 7, 1955.

of
the

cents

of

the close of busi'

STOCK

January 3, 1956

of
half

November 30,1955.

ness

able
dividend

stockholders

to
at

dividend
A

one -

share was
payable January 11,

1956,

In
COMMON

and

cents per

record

1.955.

DIVIDEND

dividend

two

'

(22}/£(f)

holders of record December 19,

share payable

CASH

extra

twenty

January 3, 1956 to share¬

extra

1955,

year

dividend
cent

Stock

of business January

close

the close of bush

November 30,1955.

ness

declared

STOCK

per

on

cumulative

1956,

Capital

Cimmon

of

registered

and

share,

of

stockholders

to
at

An

holders

1955.

Common

said

to

Company at th^ close

Dollar

per

holders

of

and

share, being

1955,

declared

fortyfive
share was de'
payable December 21,

record

Dividends

The regular quarterly

6, 1955.
this
clay

Capital
February

Capital

the

175, on
the
this Company,

the

TIME

clared the following dividends:

Preferred

December 30,

of

has

per

30,

DIVIDEND

cents per

1955,

registered on the books of the Company at

71

extra

of

of

December 8, 1955.

(45(f)

COMPANY

One

of

June

to

a
quarterly
dividend of 20c per
the Corporation, both payable

an

of

of

23, Michigan

of directors of Allied Products

corporation,

share and
the Common shares of
60c

are

CORPORATION

AND

payable
undivided net profits

ended

dividend

In

Corporation,

dividends

business, December 16,

EXTRA

Treasurer.

Company,

out

dividend,
On

ex¬

A dividend cf

a

1955.

December

on

Preferred

business
The

CORPORATION

No.

These

Stock

yet

1955.

7

I

CORPORATION

FOX,

Directors

114,

this

year

the

of

CORPORATION
cr

DIVIDEND

not

November 15, 1955

h

30,

declared

19,

RAILWAY

N.

No.

of

said

on

COMMON

Common

SHARES

TOPEKA

dividend

a

1956,

of

ALLIED PRODUCTS

V'V
f*BA»

a

per

by

1955.

SANTA

the

Detroit

(50(f)

DILLARD, Secretary

PREFERRED

*

\?l

on

Par

be

mailed

will

be

GENERAL

has

December

SAMUEL

Stock

'Altill'X

($1

TENNESSEE

quarterly dividend of 20 cents per share on the
Capital
Shares
of
the
Corporation,
payable
January 4, 1956
to stockholders of record at

Dividend

E

cents

Value)

per

declared payshareholders of

Directors

Twenty-five Cents ($1.25)

J'

the

on

1953.

-JS- 3E

was

1956,
to
business

ON

of

Board

1956.

DIVIDEND

fifty

stockholders

1955

CORPORATION
DIVIDEND

Stock.

•

share

Stock

of the Company, and

Par

clared

Match Company

BUILDING SUPPLIES

per

has

twenty-

Dated, December 8, 1955

153

Cents

Funds)

30,

the close of

at

New

•

(25(0

of

The Chase Manhattan Bank.

STRAUSS
and

books

Checks

GENERAL REALTY & UTILITIES

payable February 1,

LUMBER

Directors

payable. December 30, 1955

LIMITED

One-half

January

on

The
•

1955.

1955.

transfer

closed.

meeting of the Board of Directors of
Mines Limited, held this day, a dividend

December

PUIP PRODUCTS

of

dividend

a

close of

YEAR

PERRY S. WOODBURY, Secretary

19,

STEVENS, Secretary.

Board

declared

common

a

a

January 6,

*

December

changed under the Company's
Exchange Instructions dated May

DIVIDENDS

cents

ber

seventy-five

Vice-President

divi¬

ord at the close of business Decem¬

1958 to stockholders of record
business December 28, 1955.

of

close

the

on

Both

COMMON

stock has
been
declared
payable
January 5, 1956, to holders of rec¬

per

20,

share

per

Stock.

dends

(no

business December 19, 1955.

Dividend No. 209
A-< CHKtjtetly .• dividend

(75c)

Pre¬

share

share

ENGINEERING,

$1.75

Reynolds Metals Building
Richmond 19, Virginia

East

INC.

1956 to stockholders of record

•

cents

dividend of

A dividend of fifteen cents

COMBUSTION

ef

DIVIDENDS

the $1.50 Cumulative Preferred

on

Both dividends

MATCHES

5

Common

Value)

COMPANY

Dwight L. Sloan is

of

7%

the

on

the

METALS

associated with the firm.

Dome

regular quarterly dividend
share on the Common Stock. At the same meeting the
aJso declared a quarterly dividend of 37'/ac per

share

dividend

share

The

REYNOLDS

securities

a

Directors

regular

TECHNICOLOR, Inc.

'

pany

of

the

ferred Stock, also a dividend

Inc.;

W. MICHEL,
President and Treasurer.

The Board of Directors of The Diamond

of 45c per

Board

declared

quarterly

CLIFFORD

December 8, 1955, declared

<

.

Moore, Jr., Treasurer

Allray Company Formed

record

OF

1955.

year

McDANIEL, Secretary-Treasurer.

December 8, 1955.

1955.

on

the
E.

five

ible

)

for
Q.

1955.

in Manhattan, Bronx,
Queens, while Shopwell oper¬

8340 Northeast Second Ave.

CONSECUTIVI

on

on

the

the close of business December 23,

and

-.hare

74tk

share

A. Monti

DIVIDEND NOTICES

COMPANY

at
a dividend
the out¬
January 4,

declared

per

payable

of record at- the close of
December 23, 1955. Tnis distribution
final
dividend
in
respect of

on

represents

per

■

Association, payable January 15,

engaged in the operation
supermarkets. Daitch, operates

of

At

The DIAMOND

day,

stock,

1955.

Company,

stockholders

business

.

and Electric Association

well

December

& Co.,

this

CORPORATION

\

on

has become affiliated with Farreli

big

:

this

($2.00.)

14,

of

1955.

regular quarterly dividend of
twenty-five cents (25(0 per share

'Special to The .Ej#*ncial Chronicle)

fering is still in syndicate.

MATCH

held

capital

Y.

413

Directors

Dollars

standing
1956,

of

N.

5,

NO.

STOUT. Secretary

Shop well
Foods,
Inc.
will
be
into Daitch Crystal Dai¬

share on all the outstanding stock of
the'Company has been declared payable Janu¬

With Farrell Co.

in

York

December

.

similar

a

Consolidated

is

merged

ary

Diego Gas & Electric's bonds

irsued

it

.

DENVER,

cut

New

DIVIDEND

WAGNER BAKING

New

delivery of these

DIVIDEND NOTICES

Grant Street.

Broadway,

1955

COMMON

the

to

(Special to The Financial Chronicle)

decided

Electric

&

3

9,

case.

Prior

With Hamilton Managem't

445

business December

JOSEPH S.

to

Colo. — William " G.
Jones has joined the staff of Ham¬
Consolidated
Gas
ilton
Management
Corporation,
that of Baltimore

120

1956 to stockholders of record
of

at

such

out the

Rosario

on

Street.

moving out.
brought

14,

close

December

on or after Dec. 1,
decreasing prices from
103 V2%, while sinking fund re¬
demptions will be made at par,
together with accrued interest in

1957

"

Groups which

the

(Special to The Financial Chronicle)

Palmer, Pollacchi

a

the

be made

may

'

taken

dertakings have been extremely

as

to

irmisions of the Internal Revenue Code.
The directors have also declared a divi¬
of ten cents (10c) per share payable

ALLIANCE, Neb.—Allray Com¬

Large-scale in~
reluctant
to
place

designated

ours'iarU

Honduras

dend

January

common

div'dend."

&

before Dec. 1, 1960 and at in¬
creasing prices thereafter. Option¬
al redemption of the debentures

Co.,

"

Exchange.

or

with

last fort-

are

gain

W.

Robert

Securities

become

Zero Court Street.'

for them.

out

—

they have their work

find

ders

who

issues in the

new

t

Mass.

Brothers

With

cents

and

this special dividend will be

"capital

open¬

& Co.; M. M. Freeman &
Co.,
and Ira Haupt & Co.

(Special to The Financial Chronicle)

Underwriters

ht

has

Keller

Hard At Work

wn

Keller Adds to Staff
(Special to The Financial Chronicle)

re-

t

expected that
twenty-nine
<$1.2911
per .share ot

dollar

one

offering group include: Equitable
Securities Corp.; Baxter, Williams

cks in dealers' hands have been

ilding

payable December 24. 1955 to stock¬
holders of record at the close of business
December
16,
1955.
It is

ries, Inc. Both Daitch and Shop-

aggregate

syndicate.

that

realizing

be

to

the next several
will be on to re¬
duce
existing
inventories
and
clear the way for this enormous
undertaking. Close to 600 firms
are expected to be in the offering

since

huury to take

no

is^ expected

Co.,

Mining Company

stock

umroximatelv
md one-tenth

York

CORPORATION

Slreet, New York

A special dividend of one dollar and fortyn*ne cents ($1,491 per share has been de¬
clared this day on the Corporation's
capital

at

into

&

Street, members

NOTICES

SHARES

Wall

14

debentures will be ini¬

convertible

D. Fernald

Main

of the Boston Stock

New
NATIONAL

debentures and notes will be used

new

1387

151

DIVIDEND NOTICES
DIVIDEND

Net Proceeds to be received by
the company from the sale of the

6,952,293 shares of

figure which will in¬

a

an

So

pension

companies and

urance

free¬

possible, what with

which

weeks,

is

currently

toward

$400 million.

been

particularly

will be

projected

volve

groups

have

record-break¬

SPRINGFIELD,
Mass. —Winthrop K. Fernald has joined the

of Lloyd

Inc.,

(Special to The Financial Chronicle)

;

primarily to pay the cost of
ing new supermarkets.

staff

Joins Lloyd D. Fernald

Group Offers

stock at $21 per common share

through the mid¬

underwriting capital to the

up

priced at

in recent weeks.

up

trend

'

tially

Ford

Foundation's

stock

opportunity to work off

il'ding

ds

dealer

for

on

fullest degree

-virtually nil. The hiatus in
ther offerings will give underiters

1970.

The

ing equity offering.
The

onsidering

buyers,

major emphasis
circles will be
getting things in order for the

on

cards.

n

potential

dle of next month,
in
underwriting

buyers would

any

to

reports

Girding

ndful of equity ventures, of the
e

af¬

indicating a fairly
rapid movement of the bonds into

and

now

that

year,

account.

rporate

been

investors' hands.

between

the

had

recent offerings.

more

attractive

single debt issue remains

a

than

And the deal proved much more

are

shutters" for 1955.
ot

return

liberal

the

of

that institutional
engaged chiefly,
the moment, in rounding oul
ir year-end accounts, could go
whole distance and "put up

ar,

Hirsch

Daitch Debentures

Reporter's

tor

Jackpot

week's

only new offering
of corporate debt securities, curi¬
ously enough, turned^ in the best
performance
in, several
weeks.
Hirsch & Co. and associates are
Bankers paid the Delaware Power
offering $2,000,000 of Daitch Crys¬
& Light Co., a price of 102.234 for
tal Dairies, Inc. 4%% convertible
$10 million of 30-year, first mort¬ subordinated debentures due Dec.
gage and collateral trust bonds to
1, 1975 at 100% and accrued in¬
carry a 3J/2% coupon.
terest.
Simultaneously, Hirsch &
The bonds w ere priced at 102.824 Co. announced that it had
placed
for public reoffering for an
in¬ privately for the company $1,000,dicated yield of 3.35% a bit more 000 of 4V2% notes due Dec.
15,

Our

endar

the

(2675)

WESTCL0X
SETH

•

BIG

1

BEN

THOMAS

STR0MBERG

HAYD0N

will

not

be

RECORDERS
MOTORS

paid on the shares
the stock

issued pursuant to
dividend.

61

Broadway

New York 6,

John G. Greenburgh
Treasurer.
N. Y.

152

The Commercial and Financial Chronicle

(2676)

Thursday, December 15,1955

...

'

f

V

out

BUSINESS BUZZ

to be

$281

A

Nation's Capital

This

WfkWI

jTJL I VtV

(

JL If W

y*

billion.
Federal

Conditions

gJ

Behind-the-Scene Interpretation*
from the

;

column

how

ported
trol"

has

corporation

C.—

prospects

Enough light on 1956

of the Housing and Home

were

Federal Reserve

lion

revenues.

to

System will be
keep tne lid down on the
growth of bank credit as the
new

gets under way.

year

has

There

expend¬
but also the estimate of

forecast of construction
itures

spending—both

business capital

of business expansion is
not letting down. Furthermore,
construction industry people are
inclined to think that the offi¬
pace

cial

of crop

of a 5% advance in
for 1956 (to the 11th

in a row construction ex¬
penditures
have made
new
highs), is if anything too low.
year

officials

Monetary

for

policy of credit

Furthermore,

visions"

though
its
judg¬
ments, even if not made public,
have often been divergent from
those of the Treasury and Fed¬
eral Reserve. The CEA derives
even

can

as

reflects

with

bill

Recent

Federal
flect

said

is

to

banks

re¬

nor

ure

from

the tight money

kept in

It

of

flood

have

all

than

with

It

d

in¬

buying a
paying

be

will

funds

kind of credit

Unless

soon,
gone

panics

on

money" for

the
"shortage
of
the VA and FHA

loans.

loans

■

from

set

over

up

the

individuals

I

and
t h

with

pending, had approved
1,800 loans for $25 mil-1

some

why officials have
high hopes of a balanced budget
is the zooming volume of rev¬

It

*'

the

was

doing

boosted by much higher

business

in

RFC
as

$100

i/s

Fed¬

million,

It

support is
operation of a "sec-

| ondary market."
Under the
1954 Housing Act, the Admin-

] istration made
substantive

of its few

one

provisions

looking

the

1951

was

then

the

Demo-

s

toward less Federal aid.
vided two things.

cipal
:

must

stock

sum

placements

Anheuser Busch

that

should not be unlimited
borrowings from the Treasury.
The. second
was
that
lending

of

take

The first

of

out

FNMA

equivalent to 3%

Eagle Oil

It pro-

was

sum

of the prin¬

their

with

a

in

mortgage

FNMA.

i

;
J

by edict

can

free

purchases without
FNMA going into the market,
and without requiring the 3%
capital contribution from sell¬
ing lenders. When this $90 million is gone, then all the White
House has to do is to ask Congeneral

gress

to

.

With

the

,

of

build

and

make

more

tenderness

the other hand,

standing
with
lonely
maidens
who; keep
cats,
o

which

there

the

the

Of

question

was

answered, but that is not
surprising, for it is rare for a
answer

a

communication

direct

question.

to

The

did elicit this additional

answer

pound

'

"selling"
milk

for

for

the
one

foreign

dry

cent

a

school

lunches, it is also used to feed
foreign, expectant mothers.

\This column is intended to

n

fleet the "behind the scene" intei
pretation from the nation's Capiti
and may or may not

the "Chronicle's"

Con-

pros¬

Review

coincide wit

views.]

own

burden

of

carrying FNMA's portfolio of
some $2.5 billion of older mort¬
before the

Management Open

ORELAND, Pa.—Review Mar
Corporation

agement
formed

with

offices

and

Walnut

in

securities

a

dent and

up

the

course

not

are

Treasury, the

picked

reputed to be

are

many.

from

gages

powdered milk
Administra¬

the

up

tion's

pective sale of'from one-half to
$1 billion to transfer to investors
the

might
huge

the

available.

feels toward the housing
volume, this would be approved
quickly, and that is the way the
"shortage of mortgage money"
is likely to be ameliorated.
On

of

more

of dry

gress

Avenues

bee

Plymout
to

business.

engai

Office;

Ralph P. Coleman, Jr., Pres

man,

R.

has

at

Treasurer; Jean K. Colt

Vice-President;

and

Hari

Blanck, Jr., Secretary.

re¬

organization of 1954, had to be
dropped

is currently embar¬

there is still $90

case

the President
for

port

capital

Colorado Oil & Gas

One

the funds available for this sup¬

that

In

25

cent per

one

that this

noted

was

dispose
surplus

powdered

million of Treasury money that

some

mortgage

the

institutions

Olin Oil & Gas

the

!

*

same

flood in Kansas.

than

T h

e n -

lions.

The reason,

350 applications;

onl.y

less

called

began closing these loans offices

;

that

time after the turn of the year.

and

As of the end of October SBA

of which
promised a

said

tion, which buys and therefore
supports the market for FHA
and VA loans, will be required
to sell a "small issue," perhaps

of

small businesses.

none

now

May Open Up

about

e

volume

offices all

is

the

is

pound.

intelligence:

!

,

in

area

a

government
Administration

the

C.,

mestic cats also at

Never¬

4*4%.

shortly, unless—

bor¬

to

to

security

cent above

its

for

han¬

England

place to accept applications for

conditioned

White

lending

any

these

limes, with an

limited

interest

a

in

hurt

theless, FNMA must do it

loans

more

government

Private

dles.

rowers

en¬

the

not

eral National Mortgage Associa¬

Administration

emergency

balanced

enues,

m a

the

damage,

Business

noted that several days

categorically
budget.

approves

company

loans has been small. The Small

Qualifies Prediction

statements,

officials

loan relief for the New

prediction.
This is another in a long line
a

hunch is
insurance

officially, one good
that
probably one

money

fixed

FNMA to Borrow

balanced this fiscal year, stating
as

high

to

going

stitution

diameter.

great

of

end
is

pound.

consumers

D.

in

Japan
(Cost

ture, who has asked the public
for suggestions on disposal of
surplus, suggesting the sale be
made for consumption by do¬

from

rest must come

The

open

explained

never

institu¬

reorganized

This

got

they

standing and record of debt re¬
payment
just might outshine
the government's aid.

ago Secretary Humphrey again
expressed the hope of a budget
it

will

proportion to the

is

the

public sales of debentures, so as
to relieve the Treasury of this

to do, is

upon

publicity

it

While

in

>

the Budget Bureau

tion.

the

why

following disasters.

pro-j

drop

income.

Federal

substantial minus free
position.

was

"flexible
dollar

inverse

newspaper

Despite the great noise which

of bank reserves being

Humphrey

ital

in

and

3% ounces.)

Besides

a

reserve

have

Flood Loans Small

pol¬

icy which culminated in a dis¬
count rate rise to 21/2%, and the
average

in

in¬

the

to

itial $93 million of Federal cap¬

joy such hopes until they know,
probably not before late March,
how expenditures are going.

capable of meeting
withdrawal demands.
not indicate any depart¬

are

currency

It does

the
the

for

called

are

limited

Treasury

explained

or

is

bom

with

Officials

loans.

do

FNMA's draft upon the

rassing.

charged

were

yet

never

Regardless of what the Sec¬

normal desire to see that

a

Administration,"

which

disaster

retary of the Treasury "hopes"
about a balanced
budget, the
staffs of neither the Treasury

the

by

blame

farm

mone¬

buying

Reserve

Business

"Small

the

amount of work either that they

visions"

authorities.

tary

"flexible pro¬
concealed by

of

of

could

that

dealing

in

worry

been

version

cratic

for

children

spirit of helpfulness, this
wrote Ezra Taft
Benson, Secretary of Agricul¬

ever seen

guys

you

visitor before?"

a

in presenting it as amounting to
something, for by so doing they '

it often has, worry
into a viewpoint,

President

has

re¬

correspondent

all ap¬

lowering of supports. Dem¬
ocrats were equally interested

President

the

go!—Let's go!—Haven't

and

physical proximity to, and
advising the President. If the
CEA,

In

bi-partisan political
play. Republicans were trying
to represent it as a "savings"

close

the

cents

of

Israel

cent per

one

domestic

Washington,

curious

a

being in

its very real power by

the

of

character

monetary mat¬

cial powers over

ters,

Wash¬

herein

reported

was

Iraq,

to

The primarily phony

pearances.

Actually the CEA has no offi¬

Home

and

C.

lunches

for

support-

crop

Housing

Administrator,

school

"Let's

not falling, to

are

the

Brazil,

military

run

remains to be seen.

costs

visers.
»

It

budget to come down in Janu¬
ary

Pro¬

Renewal,*

cently that the Department of
Agriculture has
been
selling
dry powdered milk for the

this will be admitted in the new

There remains, how¬
ever,
''another county" to be
heard from. That is the Presi¬
dent's Council of Economic Ad¬

tightness.

Urban

ington 25, D.

inexorably to $35 billion
fiscal
1957,
but
whether

way

Localities

Workable

a

Helps Expectant Mothers

to $34.5 bil¬
Furthermore, it is on the

lion.

to

Finance

Defense

spending will

the Federal Reserve in the con¬
tinuance of the

ing

made

been

has

for

spelled out in

"How

which may be obtained by writ¬

will do. At

Defense Department

the
back

of

Treasury are expected to

it
the

by

Develop

gram

Depart¬
ment that this $34 billion figure
will not be achieved, that U. S.
clear

cities

Administrator.
are

circular,

Can

support expenses.

Already

guess

outlays

the

that time it was estimated that
military spending would be held
to
$34 billion even, and that
there would be $995 million less

>•

those

to

the HHFA
The details

do NOT know

is how expenditures

-

official—which indicate that the

loans

ing, workable in the judgment
of

wipe

What officials

the

1954, to with¬
appropriated benefits and

insured

made of $62.1

out the then
forecast deficit of $1.7 billion.
than

more

only the

not

been

of

under

of

which fail to develop a "work¬
able plan" for their city plan¬

entirely possible, some fiscal
observers believe, that rising
revenues,
of
themselves, may

clearly

Agency,
Act

hold

bil¬
In fact, it is

timates

re¬
con¬

planning
through the

asserted

Housing

d jpor*

a n

tj^n W&fe in sight
when the revised es-

in

given out to indicate
the disposition of thft

been

has

profits

sonal income

often

"centralized

Finance

D.

Aid

has

municipal

over

been

power

WASHINGTON,

burden

more

Treasury to keep under
"temporary" debt ceiling of

the

Washington...

little

a

the

on

money

because

market.

of

the

This will

tight
come.

TRADING MARKETS

Delhi-Taylor
Fashion Park

Texas Eastern Transmission

Indian Head Mills

Bank of America

Pacific

W. L. Maxson Co.

Northwest Pipeline Common
Pan American

Morgan Engineering

Sulphur

National

Wagner Electric

Carl Marks

Bought—Sold—Quoted

FOREIGN

sciiiick, run 1 iK conjpa*

SECURITIES

50 BROAD STREET
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Stock Exchange

TEL:

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SL 456

1



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St.

Louis

HANOVER 2-0050

•

Riverside

& Po Tnt
SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

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Investment Securities

10 Post Office Square,

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Telephone

2, Mo.
nsmssase:

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