Full text of Commercial and Financial Chronicle : December 22, 1955, Vol. 182, No. 5492

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

«*

^-"m '
tHjp-

&&, Wiwntfwu.

-

'"^a

WWt

(jJicrry Christmas

OF

MICHIGAN

DEC 27 1955

7k e

r

'

/

BUSINESS

MUlNISmTIQH

UBUSY

Financial Chronicle
Reg. U. 8

Volume

182

Number 5492

New York 7, N.

Pat. Office

Y., Thursday, December 22, 1955

Price 40 Cents

Copy

a

EDITORIAL

"How Firm

As
The
are

We See It

beginning

once

the facts of life about

learn

more to

Under Secretary

budget making and fiscal

without

deficits.

Debt

Burgess

government's

says

tary expenditure

or

ander Hamilton,

reduction

foreign to their thoughts, probably
since that has little voter appeal supposedly, but
a
boiling prosperity — much to their surprise —
was and
is producing revenue in an abundance
not experienced for a
good while past. Employ¬
ment of a resulting (hoped for) balance or better
in the budget figures to promote tax reduction
seemed to them to be almost ideal strategy for an

central

behalf

of

the

acknowledge specifically
Bureau

Federation

which is

threatens

in

any

a

time when in¬

I

event. Probably to the

neither

debt

on

tax

nor

ing with

An unfortunate concatenation of circumstances

on

of

the

Treasury

the

present

aware

some

well

as

our

the treasury,

on

American

Farm

the

stable

export

are,"

the

I

Bureau

are

afforded

potential undertakings in

a

foreign policy.

Underwriters,

for

of

problem

a

more

like

something

Continued

24

on

page

26

by Dr. Adams before the Bank Study Conference of
the
Michigan Bankers
Association, University of Michigan, Ann
Arbor, Mich., Dec. 8, 1955.

the

dealers and

boom

gift for phrasing
dramatically,
this:
"People are spending like mad.
Everybody is living on the down-payment. Everything
the

In the

on page

the

nicely into a period of
growth?
Or will there be

investors

address

in

cor¬

complete picture

of issues now registered with the SEC
"Securities in Registration" Section, starting on page 36.

our

State, Municipal

in

and

U. S. Government,
Stale and

ALLIED STORES

Municipal

Securities
telephone:

STATE

AND

$

MUNICIPAL

in

Public

Housing Agency

COPIES OF OUR

Large-scale Expansion

HAnover 2-3700

NEW

BONDS

Shopping Centers

Bonds and Notes

BOOKLET

"ATOMIC ENERGY
REVIEW"

Attractive

CHEMICAL

'.2

5% Yield
ARE NOW AVAILABLE

CORN EXCHANGE

BANK

ON

J. R. WlLLISTON & CO.
ESTABLISHED
MEMBERS

AND

BOND

OTHER

NEW

STOCK

YORK
AND

1689

STOCK

115

EXCHANGE

COMMODITY

DEPARTMENT

30 BROAD ST.,N.Y

Beach

—

Rye, N.

Bond

Dept. Teletype: NY 1-708

"

THE

HARRIS, UPHAM & C9
120
34

Exchange

Chase Manhattan

BROADWAY, HEW YORK 5
offices

from

coasf

to

bank

coast

Net Active Markets Maintained

To

•

m
lrs

T. L.Watson &Co.
ESTABLISHED

Dealers, Banks and Brokers

American

Exchange

Orders

Executed

Canadian Exchanges At

CANADIAN

Stock Exchange

On

' Common
Stocks

BROAD

STREET

NEW YORK 4, N. Y.

DIRECT

WIRES TO

company

Dallas




BRIDGEPORT

•

PERTH AMBOY

Analysis

DEPARTMENT

Pohehok Securities

MONTREAL AND TORONTO

Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE

Soat/uceAt

COMMON
*

Regular Rates

Industrial Bonds,
25

Express Co.

All

Teletype NY 1-2270

Preferred and

American

BONDS & STOCKS

SECURITIES
Commission

New York Stock

CANADIAN

CANADIAN

1832

Members

first

'

DEPARTMENT

BOND

REQUEST

Members New York Stock

Y.

■ '"1

Id

OF NEW YORK

EXCHANGES

Broadway, NewYork 6, N.Y.
Miami

THE FIRST NATIONAL CITY BANK

115 BROADWAY

CHICAGO

(&RPOKATI071
40 Exchange

Place, New York 55, N.Y,

1 NORTH LA SALLE ST.

NEW YORK

i

i

Will

stimulants?

Our wives have

Dr. E. S. Adams

of

Federation, Chicago, 111., Dec. 14, 1955.

—

weapon

trouble?

know,

successes

by Dr. Burgess before the Annual Convention

SECURITIES NOW IN REGISTRATION

porate securities
and

level,

♦An

29

page

You
as

Continued

j

"An address

Continued

DEALERS

considering

stimulate.

to

success

of the difficulties

strengthen the hands of those
predisposed to that tendency in any

are

other

have, myself, spent many hours
work of inter-departmental

at the least to

who

prob¬

the

that effort and its relation to

on

of

and

of farm products, which we are try¬

all

r^ids

assure

in

committees

Burgess

efficient

Many thoughtful persons in the United States today
wondering how long this prosperity of ours can con¬
tinue.
We see houses, automobiles,
and
appliances of all kinds being
produced in profusion and sold on
terms that seem, in some cases, fan¬
tastic. We see people spending freely
and going more deeply into debt.
And .in the background, the stock
market has been zooming toward the
stratosphere.
Is
this ^rather
hectic
prosperity
sound and'enduring? Or is it flimsy
—based too much on borrowing and

of Government than this situation.

R.

,

are

There is today
subject receiving more unremit¬
ting attention from all departments

W.

inflationary trends in the

dealing with the present situation.

lems of the farmers.

cuts, but rather

some

more

j

no

the part of the national

has of late tended to incite

to

Secretary

on

a

,

the

concern

associates

I

Looks for

Federal Reserve policy is not an

thrift,

his

bal¬
prospective surplus, suggest

reduction

of

the

rather than to tax reduction. But to many a

greater generosity
government.

also

likely to have

level when farm prices are stabilized. Warns
self-correcting tendencies are not always reliable, and

national

our

interest and

not

Savings

one

encouraging

here

come

of the

are

eral price

Their sale also spreads the

have

you

we

gen-

debt
widely v. among
our
people, which is sound fiscal policy.

of the dreaming politicos, in¬
fluential members of both parties began to see it
more
profitable politically, as well as economi¬
cally, to apply available funds to debt reduction
a

j

national

some

budget, and

of

are

essential to

so

growth.

bonds

for

means

sale

the

to

These

i

of debt.

Department, I want to
aid that American Farm

given

best

along some of the soberer elements
suggestion that should a surplus really
eventuate, it should be employed in reducing debt

anced

has

the

Bonds.

came

surprise of

Treasury

j

collapse of

stable
than it used to
a new chapter in our economic history and have moved into a new
plane. Lays prosperity to exceptionally high production
of durable goods, which has resulted in a huge expansion

freedom, integrity, and individual self-respect.
On

had prophets of boom and doom in 1929,

because our economy is
be. Says, in 1950, we started

wide distribution of the

a

Bankers Association

the 1929 variety,

high taxes.

banking system; and

we

Dr. Adams holds

national debt.. Concludes any successful solution of the
farm problem must follow the fundamental principles of

with the

flation

,

j

Recalling

as

election year.

rather than in tax reduction at

is to maintain

Lauds policies of Alex¬
the first Secretary of the Treasury,
and affirms adherence to a sound and stable money; a

seemed to be

Then

concern

and strengthen the foundations of peace and
prosperity.
Holds there is no alternative now for either heavy mili¬

have been inclined to preen their feathers of late
about an approaching balanced budget, and even
reduction

By E. SHERMAN ADAMS*

Deputy Manager in Charge of Dept. of Monetary Policy

of the Treasury

American

Dr.

of

some

management. A number of Republican politicians

tax

A re We Heading for Trouble?

By HON. W. RANDOLPH BURGESS*

Administration and the American public

now

Fountf ation"

a

WHItehall 4-8161

request

IRA HAUPT & CO.
Membera New York Stock Exchange
and other Principal Exchanges

111 Broadway, N.
WOrth 4-6000

Teletype NY 1-702-3

upon

Boston

Y. 6

Teletype NY 1-3708

Telephone;

Enterprise 1820

V

2

(2742)

The Commercial and Financial Chronicle

„

The
Complete
Banks,

which, each week, a different group of experts
advisory field from all sections of the country
participate and give their reasons for favoring a particular
security*
(The articles contained in this forum

Brokers and Dealers

they

•re

We

specialize

and

in

positioning

and

listed

to

200

over

and

nine

us

to

is

n

at

estimate,
at

$ 2 0

erties

re¬

(in¬
C. McCormick

James

Kio

enhanced by widespread distribution
with
approximately 1,600

!

Since 1917

stockholders

tunity

120

Stock

BROADWAY, NEW YORK 5
TEL.

REctor

this

in

§

March, 1955, as successor in
incorporation to Davison and Co.,
in

§|

Exchange
Exchange

Stock

oppor-

i,

Members

York

2-7815

|

general

partnership

Bank of

1951.

A

Gas

in

The

interest

company

in

was

oil

properties,
successful

very

in

Virginia

Alabama-Tennessee Natural

Company

Southeastern Telephone Co.

the

developing its reputation, its
business, and its equity in oil produring properties.
In
the
four
years from the formation of the
partnership in 1951 to the incorporation

Tekoil

of

Tele. LY

of

its

the

way,

to control within

1955,

in

LD

its

first

public

As

oil,

stock offering.

and,

second,

independent

an

producer

oil and natural gas.

of

Exceptional facilities for the

of

or

PLACEMENT

large blocks of

"OVER-THE-COUNTER"
STOCKS & BONDS

Engineering
Division
of
Tekoil
is
equipped to perform
every
petroleum reservoir engineering service "from discovery

f

™ "
to maximum recovery.'
The division has 46
employees, many of
whom
are
engineers or techni¬

cians.

Tekoil's administrative of¬
is
in Robinson, 111.; and it

fice

maintains

an
engineering office
complete laboratory for core
analysis in Oklahoma City, Okla.

and

&Teet\e«nd(iompttnu
ESTABLISHED

IT Wall St., N. Y.

Executive
in

and

in

LAMBORN & CO., Inc.
99

WALL

STREET

NEW YORK 5, N. Y.

effort

—

Refined

—

Liquid

to

proved

reserves

quired

by

water

into

to

of the

oil

sand

and

services

According to the
thumb, a water

oil

a

produce

as

was

oil

produced

.

.

.

to

and

Tekoil's

lt

the
record

Core

as

world

and

practical

111

the

in

Se

Tv

with

Firm

engineering

ranks

fnrn

exprntivp

th^

amoncr

hp-t

S

industrv
.

is
fh
-

Common

WISENER

Stock

COMPANY

AND

LIMITED

73 King St. West

—

Toronto, Canada

Established

1856

H. Hentz & Co.
New

York

New

Stock

-

American

Stock

York

Commodity
New

Exchange

Exchange,

Orleans
and

Exchange
Exchange

.

Cotton

Board

of

Cotton

other

Inc.
Trade

Exchange

exchanges

opportunity of participating

the

explosive

gas

potential

exploration

considerably

at

less

of

oil

risk

a

than

that

that

of

..

N.

Y. Cotton

Chicago

e averaSe oil stock,
IRVIN

Pariner,

F.

Detroit

•

Miami Beach

WESTHEIMER

Westheimer

Exchange Bldg.

NEW YORK 4, N. Y.

Hollywood. Fla.

In all, the com-

DELHI

PETROLEUM, LTD.

Chicago

.

'f/n
.°Pimon of this
writer> offers the investor the un-

and

CANADIAN

—

tprv,.

T^knii

outstanding

that

Trading Market

Maintained in

eombi-

vlrr;fo

in

Investment Bankers '

Broadway, N.Y.6 COrtlindt7-5680

and

r>avi<?nn'c

nrovide

T

usual

1897

Tokyo—70 Branches

Members

skill
an-

team

&

Labora-

my belief that the
of Bill Davison's

with

Office

Brokers

pe-

business

nicai

overriding royalty interests and
working interests in oil and-gas
leases in Illinois,
Oklahoma, Kentucky and Texas.

in

excellent

exnerienee and

and

of

is

abiHty

field

consist

an

companies

one

technical

engineers

has

Engineering

Davison is

outstanding

nation

depleted.

properties

its

tories,
Warren
Petroleum,
Magnolia" Petroleum,

day until the

a

Established
Home

Tekoil and Chief

Kenneth

troleum
such

write

or

one

&

•

•

•

Pittsburgh
Coral Gables

Beverly Hills, CaL

Geneva, Switzerland

Amsterdam, Holland

Company

Cincinnati, Ohio

pany owned, when the corporation
succeeded
the
partnership, roy¬

Members

New

alty

Proc,er

Gamble

interests

in

leases

covering
2,216 acres, or 91 royalty acres,
and
owned
working interests in
leases
covering 10,027 acres, or
5,905 net acres

-

-

"

Five

years

security

I

security
best."

York

Jan.

1, 1956, the company
completed its acquisi-.
all properties of the Kio

any

I

ago

like

Exchan

wrote, ^The

best

that

As

Stock

is

also

the

Cincinnati; likes
Cincinnatian would

instantly

of

know,

.

re-

new

oil

produce

.

.

and

\

re-

indi-

has

been employed
by
"major" oil compalarge
"independents."

Some of its better known
customers
are:
Ohio Oil,

Magnolia

Pe-

In addi-

Oil

and

Exchange). These

I

was

referring

(Amer-

the

prop-

to

common

erties consist of 75

stock

in

Procter

producing wells
Illinois, Indiana, Oklahoma, and

of
&

Texas. Present production is 386.95
barrels or a cash flow of

Gamble.

mately $32,000

the

.economy

has

rushed

Since

approxi-

month.

a

quisitiop will double

This

ac-

Tekoil's pres-

jet

1,680,000

the

aDprOximately

ondarv

8,784,077
price

and
to

barrels.

is $1,100,000

being
bank

barrels

reserves

borrowed
on

an

banking firms from

of

in

The

all

from

Kio

a

is

one

net

mar¬

has

at¬
un¬

dreamed
Irvin

F.

Westheimer

heights,

field

properties—the

profit, after all costs,
$1,405,000 in 30 months.
The

statement
revision.

*

"loves!"

needs

Many
the
And

only
of

us

word

with

Continued

one

now

"likes"

on

I

my

N. Q. B.

/

„

OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
14-Year

Performance

of

35 Indamtrial Stocks
FOLDXR OH REQUEST

minor

would

good

of

yet

think

East Centerville Field—Tekoil will
a

bull

and

tained

Dallas

basis,

on

with

speed

ket

purchase

of which

unsecured

the

sec-

aoproximately

It is estimated that
alone

proven

then

forward

ent cash flow and increase
proven
primarv reserves to

realize

coast to coast,

Development Co.

ican Stock

its clients many well-known
individual investors in oil
properties
as
well as banks and investment

1

is

any

tion

.

of the

troleum, and Carter Oil.

hours

24

of

Operations

and

knowledge

Yamaichi
Securities Co., Ltd.

by
Davison,

Kenneth
of

Division.

pro-ration limitations
on
production by secondary recovery methods; this means that once
production is started, it is possible
pump

brother,

the

with

appeal

vision—

to

approximately $42,000.
leadership,

of

no

reservoir

Prior

largest earnings for
were

Vice-President

rule

.

world."

Davison is very
ably assisted

of

with

Japanese potential.
Call

four years under his

his

much

.

of

unusual

investors

the

as

example
of
Bill
Davibusiness
acumen
and
his
ability to make an ODeration grow,

project
a

the

have;

may

investors

its

concrete

order

(by primary methods) before
flooding project started
are

offices

SECURITIES
to

his

to

grew

son's

force

as

in

branch

our

JAPANESE

company's
annual
earnings
reached $260,000.
This is another

re-

man s

least

at

to

becoming President, Core

the

pump can

flood

Lab

have

.

discover

institutional

In

over.

On

and

Lab's
year

sweeping it to

the well casing where
take

in

Davison

in

in

suc-

engineering

sub-

to

extremely

established position
"foremost
reservoir

producing

field

wires

never

present

cavity left by oil produced by primary
production, thus
pressuring the remaining oil out

tion, the company numbers
among




oil

an

Direct

business

a

During

the

fill

NY 1-1557

Orleans, La. - Birmingham, Ala.
Mobile, Ala.

make

has

with

Presidency, Core

limits its

is

Davison

been

not

to

Prior to the formation of
Davison and Co., he was President
of Core Laboratories.

before, Tek-

present,

"go."

him

cessful,

able

secondary

attri-

management

enable

associated
has

corn-

will

investors as the basis of
their financial support of the
petroleum industry.

and

that

magic

ap¬

field

all

vidual

nies

Exports—Imports—Futures

DIgby 4-2727

at

of

New

properties,

facilities

provide

horizons

gas

Tekoil

Raw

method

covery,

2.

maximum ultimate
recovery from

many

SUGAR

opened

bv the petroleum industrv

its

and

to

laboratory

quired

be

Engineering

designed

are

will

Jan.

on

Tekoil's

1929

Tel. Hanover 2-4850

offices

Dallas

been

the

specializes

of

that

ventures

recovery methods.
The most
used, cheapest and ef-

to

The

ACCUMULATION

oil

producer,

a

fective

there

Tekoil Corp. is, first a petroleum
reservoir
engineering firm

in

build

to

.

33

butes

income

been

narrow

mentioned

was

as

has

in

Kio

possesses the

bination

of

secondary

the

com-

daily

and

equities
properties.

should

through

parently

appraisal

interest

company

the

of

of the most able
younger men

firm

an

income

all

H.
Davison, President
Tekoil, is generally regarded as

one

instances, however, the
will reduce its fee to
take

Exchange
Exchange

6, N. Y.

of course, is intimately familiar

in the petroleum industry. -He

recovery project in lieu
normal cash profit.
In this

of

mon

62

regular

HAnover 2-0700

engiinception

its

Stock
Stock

are

Tek-

William
of

secondary

$9,000 to $381,000 after withdrawals of $181,000. In June,
1955, Tekoil raised $1,400,000 in new capital

Lynchburg, Va.

the

some

company built its net worth from

Scott, Horner &.
Mason, Inc.

with

company.

company
cost
and

now

fees

a

engineering services, the

stantial

in

widely accepted engipractice of accepting a
part of consulting and engineering

Products, Inc.

of

part
of

taxable

the

Air Control

its

organized

Illinois

so,

company is compensated by a cash
fee.
Engineering fees constitute a

consulting
petroleum reservoir engineering
firm specializing in the production
of oil by secondary recovery methods, Davison and Co. pioneered

a

neering

Trading Markets

For

acres

that

very
promising.
been doing all the

had

a

a
secondary recovery project is
recommended, the company's employment is continued through the
design and installation of the water

In

an

get

to

of

this

states.

32

in on the ground
growth security, as
the corporation was just organized

McDonnell &fo.
New

in

The investor still has

floor

American

The stock is further

outstanding.

oil

flood.

opment Co. which are now being
acquired) for each share of stock

3,050

leases

York.

American

19 Rector Si, Now York

Outstanding- Management

installation

prospect.
If
positive and the

Quoted

operate

flood

prop¬

of

to

is

of

proven

program, and
water flood project.

undeveloped

neering for Kio since

an
oil
property past the ''flush"
stage of primary production to appraise their property as a water

conserva¬

are

of

considered

water

New

Members

purchase also included

the evaluaa

Sold

Steiner, Rouse & Co.
Members

—

Typically, the company is employed by the owner or owners of

Oil and Devel-

SCRIP

in

recovery

cluding

&

step

prospect, to appraise such
property, to design and install

times

heimer, Partner, Westheimer &
Co., Cincinnati, Ohio-(Page 2).-

-

concen-

oil property as

an

a

least

Speela lists in

first

a

of

sell-

worth

%y.

as

tion

less

serves

RIGHTS

the

of

flood

is
5

tive

Principal Cities

or

at

g

b y

New York 5

SAN FRANCISCO

to

in

Bought

Procter & Gamble—Irvin F.
West¬

highly
secondary rewater flooding.
In this
field

field, in which Tekoil has

tial

current

than

CHICAGO

Wires

in-

an

there

Private

avail-

cash-flow; and

Teletype NY 1-40

PHILADELPHIA

of the most attrac-

today.

level,
i

Exchange

BQSTON

pre-eminence

Louisiana Securities

as

concern,

the company is best known for its

specialized

opportunities

stock,

its

1920

one

growth

The

Associate Member

Broadway!

recognized

engineering

trated, its personnel is equipped
to perform the engineering essen-

tive

Corporation

120

widely

competent

covery

vestor

WOrth 4-2300

a

Alabama &

.

Selections

Corporation—-James C. McCormick,
Analyst,
Eppler,
Guerin & Turner,
Dallas, Tex.
(Page 2).

-

represents

exe¬

New York Hanseatic

Stock

Although

my

able to

American

to

Thursday, December 22,195

Week's

Tekoil

be, nor
sell the securities discussed.)

v.

Participants and

Their

to

opinion that Tekoil
Corp. (Over-the-Counter 8%-8%)

orders efficiently.

Established,

offer

Corporation

It

leading banks, brokers

your

as an

McCORMICK

intended

not

are

near

Tekoil

principal cities and

dealers enables

cute

be regarded,

C.

Analyst, Eppler, Guerin & Turner
Dallas, Texas

securities.

Our complete private wire sys«
tern

to

JAMES

handling large blocks of

unlisted

This

Forum

in the investment and

Trading Facilities
For

Security I Like Best

A continuous forum in

.

•

to

National Quotation Bureau

reason.

page

31

46 Front Street

NewYerk4,N.Y.

Volume

182

Number 5492

.

.

The Commercial and Financial Chronicle

.

(2743)

A Stock Market

INDEX

Forecast,

a

M

And Issues That Look Attractive
By G. M. LOEB*

—Hon.

,

v.

lis"

•

'

•

•

be

now

key to

problem. Lists

that the best time

year to initiate

of

the

position is when

a

the investment situation warrants.
With

stocks

that

under

are

tax

M.

Forecast,

Loeb__

and

'

Air

Issues

That

Look

Brake—Ira

U.

Cobleigh

1956—Dwight W. Michener

and

sure

99

_

their

indeed, if the

average

rates.

lows,

this

November

t

means

o

stop and

one

The New Role

recent

gains

to

high

annual

"average"

an

offsetting losses somewhere

rest of the list

it

own

ber.

Decem¬
With

is

the

more

often
•other

any

month

for

is par¬

ticularly

'■

of Tourism

Abroad—Ralph

T. Reed

true

on

G.

this year end.

by

of

many

M.

a

Loeb

months

us

commitments

for

ago

have

been

Sentiment

good. Business is good. Earnings
good.
Dividends
are
good.

are

Stock markets

14

ties

advanced

borrowing going

There

is

much

not

only to
buy shares but to buy the goods
that support the corporations
they
are

on,

And

the

corporations

financing too, in order to in¬

crease

their facilities

or

efficiency

So

it

000

shares

makes

when

he

stop

one

and

has

expect

buys equities?

10

been

years

5.7%.

pects about

a

Of course,

Possibly,

he

ex¬

psychology

much I do not

really know. How¬
ever, I would say that if the net
market value of his portfolio

averaged
a

an

also
increase of about 5%

year, he would be well satisfied.
The Dow Industrials advanced

39.2%

1954

in

and

19.3%

in

1955

other

words, to expect an¬
big net percentage gain next
year is expecting a great deal.
other

Let

it

me

put

are

There

many

country

who

interest rate

banks,

accept

on

bonds,

another

a

way.

in

people

this

very

low

their savings from

investment,

insur¬

and mortgage loans for what

ance

they believe to be "safety." They
♦An

18

The

Eisenhower Administration's

—Hon. Marion B.

That

address

by Mr. Loeb at the Har¬
vard University Post Graduate School of
Business,
Wall
Street
Group,
Boston,
Mass., Dec. 13, 1955.

"Mighty" Trickle—William Jackman

Balanced

Economic
A.G, Ashforth

Expansion

Feature

I

sold.

weakening

a

of

DEVELOPMENT

21

of

Canada's

Growth
22

So People May

Prosper—Henry G. Riter, 3rd

25

The Outlook for
Disarmament and Peace—Harold E.
Stassen.
*

A

*

J. F. Reilly & Co., Inc.

25

42

*

Broadway, New

DIgby 4-4970

Christmas Message

York 4

Teletype: NY

1-4643

5

Political War Against
Poverty

Extend

in

(Boxed)

29

They include
The

old

"new era" talk.

some

idea

of

election

These

ideas

are

they

are

that

,As We

Bank

The Diners'

See It

and

(Editorial)..

Insurance

Stocks

may

pay

ideas that involve

Investment

dollar
my
a

I

dollar

be

would

gains and sit

was

always

satisfied

a

with

the sidelines

on

while.

However,
dollar

is
are

to

know

in

human

decrease

a

that

nature

the

purchasing

of money. These factors

power

.

always
a
dollar.
powerful factors rooted

primarily
tend

should

we

not

are

not

constant, it is true. They wax
and wane. But they have been as¬
cending for a long while now and

what

is

more

important,

they

promise to continue to ascend.
This is the spot where I have
I

cannot

It is that

statement that I feel

a

repeat
one

too

many

times.

have

been

about

the

market

warning the public
dangers of the stock

since

warning them

danger.

being

They

floods

have

talked

about

were

the

Our

been

about

hurricanes
real

on

The Market

Spencer Trask & Co.

40

Corner

and

.

You—By Wallace Streete

16

Security I Like Best

Nashville

•




•

.,

TELETYPE N. Y. 1-5

Chicago

Schenectady

•

Glens Falls

and

$1.75

4

You

1

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

DANA

.

..

rnMDnvv

Reentered

as

Thursday, December 22, 1955

records,

corporation

and

Other

city

news,

Offices:

Chicago 3,

111.

135

market

news,

bank

quotation

clearings,

at

South

La

STate

Arrears

$37,750

.

debt

re¬

million
.

.

cash

liabilities.

current

on

outstanding pre¬
ferred paid,
permitting divi¬
dend

New

8, 1879.

payments

on

common

stock.

,

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

of

Other
Bank

and

S.
of

Union, $55.00 per year; in
Canada,
$58.00
per
year.
$62.00

per

Quotation Record
-

Salle

8t.,

2-0613);

Earnings in upward trend
expected

to

...

triple in 1956.

Send for FREE
—

..

—''"tt

elgn subscriptions and advertisements must
be made In New York funds.

Report
i

Monthly,

$37.00 per year.
(Foreign postage extra.)
.

•

year.

Publications

<_

etc.,.

(Telephone

exceeds all

second-class matter Febru-

Other Countries,

Every Thursday (general news and advertising issue) and every Monday (com—

to

Siibscnption Ruies

.,
.
WILLIAM ™*xta cnDPDT T.
DANA
SEIBERT, President

issue

dollars

•

25, 1942, at the post office
y0rk, N. Y., under the Act of March

9576

HERBERT D. SEIBERT, Editor & Publisher

statistical

Eng¬

In 3 years,
company
duced front several

„

r>ary

Place, New York 7, N. Y.
to

C.

Company

COMPANY, Publishers

2-9570

E.

u

CHRONICLE

Reg. U. S. Patent Office
r»»xt*

Per Share

44

COMMERCIAL and

FINANCIAL

state

•^Worcester

Common Stock About

2

•

REctor

Revlon ?

or
.

.

23

ST., MEW YORK 4, N. Y.

Boston

Another Toni

34

—

The State of Trade and
Industry

plete
•

BYMART-TINTAIR INC.

36

Security Offerings.

Security Salesman's

Park

Angeles

35

cause

page

to

* Los

Securities

Prospective

The

Chicago

*

43

.

•

Philadelphia

33

—

26

25

TELEPHONE HAnover 2-4300

Direct IFires

5

Governments

Securities Now in Registration

„

25 BROAD

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

28

Public Utility Securities

WILLIAM B.

Exchange

SIN@ER, Beau
&
Mackie, inc.
HA 2-0270

Bankers

Reporter's Report

Railroad

mors

securities

37

Observations—A. Wilfred May.

Washington

Continued

Members New York Stock

15

8

PREFERRED STOCKS

specialized in

Bargeron

32

on

Request.

We maintain
trading markets in
than 250
over-the-counter

NSTA Notes

Our Reporter

Request.

on

19

Funds

and

on

**Prospectus

Indications of Current Business
Activity

against the wrong
have

careful

when

1932

Revlon, Inc.
*Circular

8

From Washington Ahead
of the News—Carlisle

News About Banks

CoastLeaseholds,Inc.*,

8

Recommendations

cannot be "safe"

just
by having money or something
first class that is a promise to pay
back in money. The people who

Gulf

Pacific Uranium MinesCo. *

.'___

Einzig: "Britain's 1956 Business
Prospects"

Mutual

Club, Inc.**

Broadcasting

44

Coming Events in the Investment Field
Dealer-Broker

Dumont

1C

Business Man's Bookshelf

increased risks.
a

Cover

window

dressing. The idea that the public
is getting in and will get in deep¬
er.

Corpus Christi Refining Co.

Regular Features

'56?

The arguments for a bull mar¬
ket next year are rather tenuous.

The

For many years we

Albany

20

of bull market

year

with

they

SHAWANO

Philosophy
1

Published Twice Weekly

have

Social Welfare

Folsom

Will the Bull Market

to reiterate

to date.
In

INDUSTRIES

Automation—Elmer W. Engstrom

the technical position.

There

5% income.

he expects a "profit"
gain" as well. How

"capital

—a

investor

an

Well, in
the average in¬
yield of the Dow Industrials

the last
come

a

I think if

does

than

more

It has been

wonder.

What

CHESAPEAKE

17

lot'customers bought about 9,000,-

off but

both.

or

17

good. Everyone

are

before.

represent.

•

did not check the percentage. Odd

is successful, prosperous and con¬
More people own shares
ever

though

INDUSTRIES

Construction in 1956—William G.
Dooly, Jr

securi¬

on

well

as

McLEAN

15

W. Babson

Prospects for the Automobile
Industry in the Coming Year
—James F. Cousins

long time.

very

fident.

than

-

far this year, brokers' loans
securities advanced about 19%.

Nonpurpose bank loans

reached and surpassed.
is

Iright time.

Situation—Roger

HYCON MFG.

13

So

We have enjoyed a long and prof¬
itable bull market. Objectives set

closing

the

Nevertheless, the business and
investment climate has been good

*-

This

wrong
stocks.
Or too
of them at the wrong time

and too few at

except Decem'ber or Jan¬
uary.

the

many

4-6551

12

Progress and Problems of
Consumer Credit Financing
—Elmer E. Schmus
The Dixie Crop

along the line. They can be suf¬
fered by the individual to a much
greater extent that the Dow aver¬
ages
show.
The individual
can

early

STREET, NEW YORK

10

won¬

more.

reduce

market

from late

runs

makes

some

To

often

WALL

•'

foolish

So it

loss!

Telephone: WHitehall

9

...

der

near

tax

Obsolete Securities
Dept.

6

Investment Portfolio

an

The Economic Weather
We May Face Ahead—W. G.
Paul

rate of profit in the stock market
works out at anything like recent

pres¬

establish

4

,

selling

to

3

Where Is the Economy
Heading?—Arthur R. Upgren
j •' ;•
r-

issues.

are

6 DAYS

Cover

Attractive

j

—

Kulp

favorable indi¬

some

Market

The Role of Common
Stocks in
—A. Moyer

may

to the time when, after 13
years, a change of
policy will be called for." Holds stock selection is

vidual and group
I feel

Points out "we

Stock

Westinghouse

near

current investment

'

:

The Business Outlook for

investment

'"" ;

Heading for Trouble?—E. Sherman Adams__

—G.

bear market, but arguments

bull market "are rather tenuous."

'

'

Cover
•

Are We

it is not yet
a

"•

■

A

for

AND COMPANY

\

"^Randolph Burgess

Stressing the risk of dollar depreciation in holding cash and
evidences of debt, Mr. Lceb points out
people have been warn¬
ing against danger of the stock market since 1932, whereas
the real danger was in the
depreciated value of the dollar. Says
a

llCHTfnSIfll!

Page

Foundation"

a

W.

-

Articles and Newt

v

"IIow Firm

Partner, E. F. Ilutton & Co.
Members, New York Stock Exchange

the time to expect

3

GENERAL INVESTING CORP.
80 Wall St., N.Y. 5

BO 9-1600

4

(2744)

The Commercial and Financial Chronicle

buses,

Westinghouse Air Brake

trucks,

have

we

states,
spending

By IRA U. COBLEIGII

each

Enterprise Economist

and

And if

got going with

A current consideration

of this

business

and dividend distribution.
V
rails

,

is

their

and

suits

glowing

a

have

fine

operating

spilled

now

re-

into

over

buoyant equipment buying pro-

a

For

gram.

ex-

ample, in No-

,

York

$120

freight

new

cars;

has

announced

rolling

stock

(xpansion.

highway
to
be
pushed
through hills and forests, chances

Cobleigh

graders,
Other

for this spend-

fa1Xor-

ably affect such related suppliers
as
Westinghouse Air Brake; and
shareholders

here

while

basking
80-year rec-

in the serenity of an

ord

unbroken

of

ments, would
get

company

of

divide nd

like to

now

better

the

see

few current breaKS

a

different sort in

a

pay-

and

earnings

form of

tie

fatter

divi-

dends...

.

.

Frankly for

enterprise whose

an

has

.

long been essturdy and quality investment, the results of recent
years have appeared a little short
common

teemed

as

the

on

so

a

side

progress

?&> "a
1953 dwindled

For

exam-

A

to

$121%

million

1954, with per
snare^net slipping from $2.43 to $1.88.
In line

divisions

(purchased three

?

this

the

earnings

1955

duced

retrogression,

dividend

from

$1.60

rate

was

re-

(1954) to $1.20
all the blossom-

ntly. With
ing of earnings elsewhere, and a
spate of split-ups and extras on
dozens of other stocks, WK shareprese

holders naturally have been feel¬

ing sort of left at the post.
Fortunately, however, a

months,

which

rnmmnn

vnTrT

hn,
has

years,

out

and,

of

fnr

hnnn
been

the

0

unable

20

and

though it could
altitude.

It

WK

range

nearly

live

Let's

our

share

per

at

net
the

prices,

case

ward

motion

had, for

investment
house

more

some

-It

sold

60c

gain

this

the

figures

period.

96c

is

the

be

in

line

Let's

bit

and

for

get

a

off

look

-

40%

of

while 50%
now

from

above,

a *

^

of

owner

Bendix
Brake

53%

some

of

achieving
insulate

valley

Co.,

its

it

It

balance

a

better

now

business

lines.

type

teristic

Westinghouse

that

from

in

a

As

be

very

business

not

railroad

cars;

of Pullman sales

come

endeavors unrelated

to

rolling stock.

So,, too, it is with

Westinghouse.

From

capital

$70
or

milhon

th^ outset

a

i

and

has nroved

denendable

abfe

auolica-

enerav

that it

security

dividend

and

for

paver

a

4] ()0f)

reli-

a

lifetime
are

en-

^sMerablT serenUy- and^bSeS
on

recent

a

around

dend

70%
a

dividend

of

dividend

hi

net

in

restoration
would

unreasonable
ooiZwx

m

$17

The

of the
the

cited

claims

ended Dec. 3, the total
of workers drawing
by 58,700 to 990,500. This compared with 1,576,earlier.
Av

production

slowed

reached another

less

down

high

new

than seasonally in
the Federal Reserve

on

Board

said

industry turned out goods at a rate cf 146%
last month. This was a one point dip from
but 16 points above last year.

1947-49 average

October

level

The

Board considered this slight dip from October to be less
than seasonal so its adjusted index edged up to 144% from 143%
in October.

November's adjusted industrial production
topped the
level by 16 points.

year-ago

Industrial production on the Board's
seasonally adjusted
on the upswing since September of last
year.

index

has been
The

Board

stated, the November increase in the seasonally
adjusted index reflected ''continued strength" in all major classes
of

industry.
It

also

presented its thumbnail sketch of business conditions

by stating:
"Economic

activity continued to increase in November. In¬
production, employment and incomes expanded somewhat
Sales of department stores were also up slightly further

further.

November

in

continued

declined

and

early December.

to

advance,
again. Bank

Reserve discount

rates

the

rate

Industrial

prices

and
loans

of

farm

continued

commodity prices
and foods

products

to

expand, the Federal
increased again and short-term money

was

further."

rose

tion

an

will

as

If

tne

thus advanced (by

viGlfi

flt

oqi/,

would

around

will take

to

ease

have

the

mills for

has

been

made

Milton F. Lewis has become

/Pu b1 ic
utility trad-

continue

1956

A. G. Becker & Go.
Announcement

effect

no

will

Milton F. Lewis With

more

than

temporary letdown in auto produc¬

a

the pressure for more

steel.

The cutbacks in Detroit

the

booming steel market, "The Iron
Age," national metalworking weekly, states this week.
Auto producers may be pulling in their horns on high cost
conversion deals, but at the same time they're putting the screws
on

°'

'

It

$1.60

appear

expectation.

were
thG

not

divi-

cash

of

share, A

a

were

history of distributing

but

Le

have

stated

a

value

shares,

Even after

Canadian

models

tonnage at regular prices.

more

be

to

do

on

heavy

not

buyers

of

steel

Auto producers
1956.

in

If

sales

of

well, the auto companies will shut down
early to push 1957 models, this trade weekly adds.
The
situation
in steel is such that a
large producer has
warned its customers against channeling any of its stocks into
gray market outlets. Any consumer caught selling to so-called
"unorthodox"

go

sources

faces

cancellation

of

orders

still

this

on

company's books.
is

This

first

the

time

since

Korea

that any steel firm has
against further growth of
gray market activity, and represents another indication of just
how desperate some fabricators are for steel, declares this trade
authority.
felt

seems

3

years

for

it

to

necessary

throw its

weight

a

a

real

value

of

above";,

li :flJ
1
possible that total sales
"'

high

and the trend of profitability is definitely on the upgrade. Earnings from brakes are
ground

bound

to go up with

way car

buying

now

Westinghouse

all the railin

is

evidence,
uniquely

equipped to share in road build-

or

slack

times,

is

now

a

'

~

Milton

F.

Lewis

backlogs

lengthen

and

deliveries

in

point to "emergency" conditions
Inventory building, where possible, is expected to
through second quarter, concludes "The Iron Age."

supply.

continue

ut

meAnt *01 i^a ^aupt & C,°*
? X
a.nnou"ced tbe r^moval
—

19th

In the automotive
and

general

United

industry last week

absence

States

car

of

Saturday
6%

output

basA a
lts of~

floors

,\

With Peters, Writer
(Special to The Financial Chronicle)

DENVER, Colo. — Earnie K.
Breeden, Jr. has become affiliated

a

brief supplier's strike

scheduling

below

.

-^"nvThJ'entir^pnth
the

increase

house business and conversion all
in steel

;Mana&er of the public utility and
r*
depart"

^

to

Mor# steel users are worrying about their steel supplies. 'The
steady supply of broker steel, sale and use of second, heavy ware¬

,

1 ™ e vX

tend

are fighting their own steel pro¬
problems, some of it is coming into the United States at
fancy delivered prices.
Some export brokers are booked into
second quarter on plate, sheet and structurals. Volume isn't high
because foreign mills have little to spare.

ePG1irj

JHp

will

Although foreign countries

and

particularly

tipq

Although the mills are producing at breakneck speed and
establish an all-time output record this
year, there will be
slight letdown during the Christmas and New Year holidays.

will

Mr.
has

many

sale;'utiiuv

Westihghouse

this year will move into new

and

*

years has been

investments " pfoty-A

these

have

$25 million"
it

fact

in£

31, 1954) of $7,777,154, yet identified
delivered $1,950,000 in cash'with
public

the

ably

in

Subsidiary in-

dividends in 1953.
0f

on

over-state-

evidence;

reverse.

vestments

they

sheet

in

are

quite the

and

Stock Exchange.

balance

ments

purchase)

shares listed

common

the New York

(Dec.

uncomplicated

Tourneau

4,126.312
No

is

signals, electronic controls and
maj0r and nationwide program. wBb
peters, Writer and Christenswitches; but most prominent ho- We're
turning out far more cars,
sen, Inc., 724 Seventeenth Street.




a

weather

A year earlier first

Board's adjusted index.

dustrial
bp

can

shareholders
}[tslGd lU0UUA"a™^
It

de.

as

due to bad

rose

November and

to

revealed

jng which through thick and thin,

i

de£

gY 1 P

wk

and

boom

leader in

•

„

coniributor

electronic

BanfP

should

equipment, WK is also
olro.

t

national

im-

as an

na¬

compensation

week

year

„

associated with A.,G. Becker &
Co. Incorporated, New York City,
wmking as Manager of

statemen

roughly

fnr

wl^

veloDer of atomic

thus

major supplier of railway braking
„Ml£,

t
our

position

year-end

statis.

major supplier £or the road

as

of WK has
traditionally-excellent
The

been

these

h

and railroad industries,

earnings, characexclusively
railway

Financial

u

A

jater piece. They would not change,
the basic picture of

of

of

al

'

„

however

suppliers.

1954

But
a]

the

across

unemployment

duction

products.

a

to prevent wrecks at grade cross-

;

gets

peak

a

Industrial

Sig.

from

is

pay

500

25

and should

to

Westinghouse

the

jobless

have

brakes

car

.',Y

312,400.

In

occa-

simultaneously applied

-y

the first quarter of 1956.

higher dividend.

from

with

result of the diversification

a

been

for

construction

This

ACF gets more than

sales

connected

As

described

totaled

and Bendix-

motor'

Westinghouse

claims

for the rise in initial claims.

securities
field for some

nine-month

gotten

years

sioas wk rail brakes

ti

curtailments in

causes

been actlve ln

share-

know, diversification among
railway equipment makers has in
fashionable.

building

load

work

number

many

-A

by 17,200 to 256,000 in the week ended Dec. 20, the de¬
partment's Bureau of Employment Security stated.
Seasonal layoffs in food, apparel and textile industries and

with

could

we

how

in

occurred

rose

the

Westing-

you

recent

and advanced designs

duty

or

on

a

Department of Labor, in the latest week,

first

P1 e n t.
Lewis

included

year,

the

cars,

heavy

and

passenger

Division*

bave

workers'

_$35 million in 3%% debentures
(due 1978 and issued to finance

the figures for

at

freight

both

brake

Idle

news.

With this windfall profit

$2.90 this

for

freight

new

the

the
at

tion.

two classes of securities

thrown in, WK common will show
around

njd

States

with

sizable

a

these

not

for

valves

control

system;

a

number

equipped

in

6%, with gain?

increase

seasonal increases in unemployment

new

sheet

year for a profit of
$3,900,000, creating a capital
of 96c per share (of WK).

But

the

the total

whole

a

maintained

Aa.-'Vl'AV '.V-'-'
United

The

reported

Balance

holdings this
about

include

to

Index

Jersey, North Carolina and Pennsylvania. There were sea¬
layoffs in the apparel, food processing and construction in

dustries.

could

we

as

was

The most noticeable

states.

soggy

a

good

time,

Canadian

in

Ltd.

in

even

stock; but there's
WK

remote

a

control

September! almosf

of

the comparable result was
That's enough to start for-

1955,
$1.21.

ville;
yard

bit.

a

exactly

was

end

t'ings

composition
Cobra
brake
developed with Johns-Man-

new

shoe

in

lab

new

sonal

stopped, started,
switched by the prod-

or

of last week

hnrdprinc?

permitted,

millions)'

conjectured

company

of

biggest

the

of

out

come

non-related

For the first nine months of
1954,
while

The

to

prepared

of share

document

products.

Automotive

upside, what
the best analysts have long contended, namely, that, over a period of time, the trend of earnings
dictates the trend

development

on

year

for

ucts of the Union gwitch and

a joint con-

for the

ag-

situation

a

fpplim?

a

cars

lhG

directed

electronic

rdf.earc%fPendlng
million dollars last

°"

enter

production for the nation

Wednesday

on

in 42

30

in

njn

its present line of prod-

Far from it;

ucts

'S

New

of traing each d

tract to explore a omic reactors
with Fluor Corp. Ltd
It can not be said that Westinghouse is projecting its future enon

reported

Westinghouse air brakes (it would

production and development tying
into our guided missile program.

tirely

hie

rajlway

manufacturing oil well
equipment; and another
large unit, Melpar, Inc., with gov-

Westinghouse also has

satisfaction

have calculated

rigs and

looks as
begin to gain

the

on

ago) which

for

and

industrial

Claims for unemployment insurance increased

Boshell

as

building industry

contracts

guid-

under

progressive

jf Bme had

company,

ernment

hp

below

Roi

still America s largest
tnLnLVpr0GUcer ,of railways, and sab"
™ brakes f°r
to bieak^ways
and
49%
ton

32%,

seems

demonstrate

re¬

incf

trading

now

Le

Production

Business Failures

high level and total output rose noticeably above the level of the
corresponding week last year.

conviction, that he's not payjng dear]y far his stock. He should
get that sort of feeling about WK

year.

include

years

whr.rp

road

in

the

Total

period ended

better

on

Adams

equipment.

last,

ihn

nnnhiP

market

a

between

at

D.

need

Edward

st0ck' buyer to

with heavy duty petroleum fueled
engines, cement mixing units, and
compressors.
There's an owned

turn

for the better has emerged in
cent

J.

was

in

with

the

specializing
bought this

company,

It

is only logical
U.

line,

that

Mr

considerable

Le Tourneau super bulldozers
will be in there pushing To round

this

Price

Auto

Industry

the

gressive; another factor suggesting
^a^
siock js now ready to get
out 0f a rut
There is always a

a new dam to be built, an
site to be cleared, or a

strip

out

of

seems

are

a

v90 million

Trade

Commodity Price Index
Food

and

Board chairman, as well as Presi-

super

Southern

Pacific

there,s
air

Turks

Management,
ance

producer of king-size
moving equipment. When

Gcirth

for

Carloadings

(dependent
up

Output

Retail

State of Trade

r0ads.

signer and

million

do

their ability to get

on

sides-the

Tourneau Westinghouse Company.

layout
14,750

could

we

Production

Electric

really

ever

of the nations

The major part of it for highways;
and there are lots of nations be-

these, perhaps the most important
is a property acquired in 1953—
R. G. LeTourneau Inc., now Le
This unit has been the major de-

a

we

some

^\!
Steel

The

billions

money). Westinghouse got a contract for $33 million from Turkey,

.

New

projected

Ira

,

for expanded earning power
appear to be among the newer
divisions of corporate activity. Of
rizons

Central

vember,

and

only

.

for the

year

/T

be

friendly to us on their road prob¬
lem, look how many billions of

vintage producer of railway

equipment, and its prospects for improvement in market value

This

we'll

highway

many

Thursday, December 22,1955

..

than

whetner by

so

Federally,

or

year.

trailers

for;

roaas

.

dimming hopes for

the

combined

week

to

dip

earlier

volume,
for 1955, "Ward's Auto¬

an 8,000,000 car year
Reports," stated on Fridaty last.
However, the 8,000,000th U. S.-Canadian

motive

Jan.

1

expected
"Ward's", added.
was

The

statistical

to

roll

agency

out

of

pegged

some

built

car

since

plant the past Friday,

United

States

car

building

last week at 168,337 assemblies compared with a turnout of 178,409
a
week earlier. Truck production is estimated at 26,778 comple¬
tions reflecting only
ume

of
The

a

narrow

drop from the week-previous vol¬

27,870.
wildcat

walkout

at

Budd

Co.

early in the work period

Continued

on

page

30

Volume

132

Number 5492

.

.

The Commercial and Financial Chronicle

.

(2745)

*

-

Let

0

important to

the

sharpened directly or indirectly
by ownership-control segregation.
There

is

the

pendence

THE INVESTOR AS BUSINESS

i

•

of

some

holder-management relations—all

0

By A. WILFRED MAY

is vitally

review

specific issues involved in stock¬

Observations.
It

Specific Issues

us

5

OWNER

the

necessity for

of

the

inde¬

directors

executives.

Too

from

often

the

often,
superficial
issues, managers dominate the Board, in¬
fully your
privileges and such as compensation, take the stead of vice versa; \yith directors'
duties as a stockholder—particuplace of vital questions as whether ties making them subservient and
larly since such fulfillment of the management is "capable and Prone to backscratching.
your true role
worthy of confidence; and whether
Management compensation is a
as
it
is
permanent
treating
the stockholders frequent issue, often obscured^Jafy
part-owner of
fairly.
■•./
sensationalism and demagogic exa
business
As a result, shareholder protec- aggeration of its importance. Divicontrasts with
tion remains meager and haphaz- dend policy is often a
bone of
Too

exer-

cise

the

wide¬

ard.

de¬

spread
structive

con¬

centration

Situation

on

This unfortunate position of the

playing-themarket

in

stockholder stems from

its

Street"

Unfortunate¬

it

is

true,

finds

The

s e

1 f

q u

it

powerless,

"Glory

to

and

God

Peace

Good

This

to

out

of Jesus Christ

.

.

made when
went to

be

taxed.

Cyrenius

up

situation

taxing

the

^

system, under

into his

with

general

our

is
cor-

which

—as

own

owning

who
has

no

shareholder,
of the vast majority,

is part

the

usually

from Galilee, out of the city of

over

total

to

up

The

second

And she

that, while they

son,

facet

was

And

there

in

were

the

them: and

a manger;

„

u

u

i/'

several possible ways

are

fundamentally
u

rector

to

reform

l

Znf

Tn

our

di¬

system.

•

be

could

promoting

y°ur-stock
philosophy.
This
The Board could be made
crec|o, embraced in some high as three classes of directors: (1)

up

of

man-

agers experienced in the business;
(2) owners who have stockholding

v°catfa th?t' ^respective of the in substantial amounts; (3) intelli-

would

„

dispose of his stock. Actually, to

contrast

ht

a

protect the non-directors.

Remuneration of directors via
c.mmon stock is highiy construc-

Wve for ensuring

a

community of

S-r 3 gr°SS -nSU!
15
interest. But whether they receive
?111
to leave his counor not seems not to make a
agreeing
n

,

^ r* he d°f" * Ilk,e. w„hatT hfs

great difference (judging by the

M.hw

they

is born this day in the

you

upon

city of David

sign unto

you:

or

there

with the

angel

a

And it

into

another, "Let

us

heaven,
now

thing which is

made

and

lying in

peace

to pass, as

came

them

this

earth

on

known

to

men

come

unto

And

casionally

a manger.

one

they

And when they had

saying which

things which

came

seen

was




legislative matters; ocexpresses opposition to

could take him under

And

he

{/its mea%Tde^eeOUarekeaePiew
individ^al shJcWufld^ spokesmen
who
th^Keffori/to sBmulate
use

possible! intelligently; bu't vote he

behavior

nual

these

it, they

company
are

Gilbert,

at

the

meeting.

holders.

Funston

1

'

company's "manners" and pro¬
they persistently advocate
reforms; as the place of
meeting, cumulative voting, the

after-meeting report, allotting of
directorships to

and,
of
course,
demagogic
stand-by,
ment's ' compensation."
side,

the

New

perform

President
York

Stock

fident
stockholder - management
attitudes and relations!
is

series

a

the

the

ninth

instalment

summarizing

author

in

the

lectures
course,

"Your Investment Problems To-

——

the

We have need for party

Share¬

Besides concentrating on

their pet

more

also

QUOTATION TABULATOR WANTED

represent scattered
vote their prox¬

tocol,

,

of

thus

function.

Messrs. Lewis and John

who

a

pon¬

shepherds returned,

business

an¬

ies; and Wilma Soss, President of

told them by the

a

Among

shareholders and

won¬

direc¬

mustIf understanding is not day," at the New School for Sopresent;1 it must be striven for.
eial Research.

things via active, aggressive, and
dramatized

will

broader

a

by

with

as

con¬

the stock¬

the

their wing. Brokerage firms Exchange last week said that "the
might, when necessary, take a broadening of share ownership is
stand on company affairs. Invest- today one of the nation's most
ment company management could important !long-range
economic
go considerably further in par- goals and is essential to raising
ticipating directly in the affairs the growth money needed by
of the companies whose shares American industry to realize fucomprise their portfolios. If they ture plans." Surely such broadenwithhold their vote, they are ac- jng of share ownership will be
tually disfranchising their own enhanced
by
more
intelligent,
shareholders.
well-ordered and mutually con-

to

glorifying and praising God for all the things that
they had heard and seen, as it was told unto them.
1-21

tion of his behavior

in

told them

shepherds. But Mary kept all these things, and
dered them in her heart. And the

St. Luke II,

members,

The Federation of Women

were

business organizathe NAM or chambers of

abuses;
on
the
other
hand, demonstrating its fairness,
The proxy macninery, the basic
gives merit awards to some lead- technique of direct stockholder
ing corporations.
participation, presents many ram-

Bethlehem, and

in

_

*This

concerning this child. And all they that heard it
dered at those

6,000

company

found Mary and Joseph, and the babe

made known abroad the

taxation. The United
of America, with a
of

as

commerce,

headed by Benjamin Javits, takes
on

to

open

firmly

done. The big
tions,

as

path

lies

most

NAM

large-

as

of

...

structive
holder

the

event,

any

Com-

of

Chamber

S.

membership
stands

to pass, which the Lord

us."

form

associations,

_

were gone away

the shepherds said

go even unto

.

In

arrange-

owner;
thus conscientiously fulPossible Rescuers
Considerable rescuing of the filling his obligation toward
shareholder conceivably could be proper care of his capital.

Shareholders

of good will."

the angels

U.

matters,

manger." And suddenly

-

for it, but hardly constructive in the public interest.

the

Nevertheless, there are available some partial aids.
The Investors
League concentrates on
taking
a
stand
on
legislative

praising God, and saying, "Glory to God in the

highest, and

the

get

to the busi-

Available Support

multitude of the heavenly

was

million-plus
even

merce.

Ye shall find the babe wrapped in
a

trade

scale

a

swaddling clothes, lying in

not

the

in

nessman

came

six

do

solicitude vouchsafed

afraid. And the angel said

were sore

country's

stockholders

their flock

over

convenient

most

__a

ment

The

Saviour, which is Christ the Lord. And this shall be

haste,

There

.

A,

,

Remedy

occupation,

conforming stock ownership

tidings of great joy, which shall be to all people. For

see

full-time

directing the efforts of others, and
appraising
their
results.
They

holder remains the real "forgotten

them, "Fear not: for, behold, I bring you good

hath

shareholder only part

public servants are doing. Inci- experience with paid directors in
nres/ureTrouns the nation's mil
y;
arranSe™ent of England). Above all, the conscious
i dissidents' exit assures the cor- obIigation to foUow trustee be_
lorSoiv Inr Sn So the rfT nent
Shp stock- p0rate management of a perma- havior must be enhanced!
largely unorganized.

them, and the glory of the Lord shone round about

from

a

merely incidental to his

as

take advantage of the market place

(ho

country shepherds

same

by night. And, lo, the angel of the Lord

host

is

man

time,

to

anrt

for them in the inn.

room

no

abiding in the field, keeping watch

a

a

to follow market action after it
has once been given. Otherwise
it has completely lost its purpose.

his company, the shareholder shall

man"!

unto

con-

public

the

of

S ^hin^ L

and wrapped

swaddling clothes, and laid him in

because there

/

that, in

community segments in business and agriculture,

,

him in

unto

fact

actuality of abuse on the part ot gent businessmen accustomed to

Status

E?llh .Ti «"i v"
l
ta/ whn ar'e e/r

accomplished that she should be delivered.

brought forth her first-born

the

other

to

ntfv viA / ivfrl
6 non,-own'n? management, uninWve?/ioTdsm a7wfl7as nTer d" SUch a Philosophy, deals ones

there, the

were

to

as

trast

™erl WEtu/ta* the rdUCt 0ne'S 0WnerShiP' alTSide
™Z

was,

well

rationalization of inertia) ad-

nnmrm

it

extent due to their long-

difficulty with public relations, epitomized by inability to
get a Big Name to head them; as

/

.

Community

lineage of David), to be taxed with Mary his espoused

so

ineffectiveness

protective organizations is

as in the case of the management's
remuneration,
the
shareholder,
through self-interest or jealousy,
is likely to be even more biased
than the management./The stock
option, while an extremely constructive and valuable instrument
for gaining the needed community
of interest between management
an(t shareholder, must be kept
clean. For example, the option
price at least must not be lowered

wel1 a.s loW Quarters (frequently

smlll itaor-

a

..

wife, being great with child.

were

the

any

managers

itv of the stock ownership
J

is called Bethlehem (because he was of the house and

And

tying

the whipping post,

who

exercising

of

way

nower

city. And

Nazareth, into Judea, unto the city of David, which

days

anti-"Wall

matter regard-

^nd then, the shareholder beCumulative
voting
Property")
ownership
is
di- eomes easily de!uded wibli fiefions
vorced from "control." In most "of about himself, such as is embodied universalized,
thus
the varied corporate activities, the ln
* e 1:^,""yolV~5?on /
ml
democratization,
Corporation and Private

individual

first

was

tra-

a

inS which it is difficult to elicit
g°od objective judgment. In fact,

—

of Syria.) And all

was governor

up

"Modern

that

(And this

be taxed, every one

Joseph also went

frus-

first and most ably spelled out by
Messrs. Berle and Means (in the

.

decree from Caesar

a

should

unfavorable

porate

Will."

AND it came to pass in thoseAugustus, thereall
days, that
went
world

actually

not

ways. He is impotent, in the first instance, in his
company vis - a - vis management
which
comprises his employees,

Highest

some

number

time

if

bound

of

The Birth

the

Earth,

on

Men

in

e

the

to

May

trated, in various

A
OiljttstmaB

successful

comparative

of
A. Wilfred

him-

a

is the

demagoguery,

shareholder to

the stockhold¬

There

causes.

ditionally

phases.

er

basic

of

various

ly,

contention. It is

The Reasons for the Abortive

distaff

that

old

manage¬

that

or

American Stock Exchange

in

making

'job.

up

can

read New York

Ticker Tape to assist

quotation tables;

full

or

part time

Please give full particulars in confidence. Box

S 1215,

Commercial & Financial Chronicle, 25 Park

Place, New York 7, N. Y.

6

The Commercial and Financial Chronicle

j

(2746)

seem

The Business Outlook for 1956
By DWIGHT W.

though it

there

certain

seems

Production

In

far

the

next

th emselves.

outstanding
sumers

demand

for goods was

much

higher.
Wages con¬

for

never

tinue

to

various

today

ma¬

terials
ward.

is

ness

D.

to

r

There

three

are

in

areas

Michener

W.

carry

1956.

to

which

in¬

over

closely related

recent

develop¬

suggest that there may be
danger of overdoing the expan¬

(1)

in

1956.

The

sion

of

the

plant
of

use

The

(2)

facilities

in

expan¬

and

and

(3)

it

can¬

trade

will

peak

during
the

position
tion to

.demand
cur¬

a

that

a

the
his

ago,

holiday
all-time

new

month.

current

favorable

inclina¬

present

use

increasing amounts of
his purchases, consumer

continues

to

itself

assert

broader scale than

a

buy

to

year

consumer's

and

demand
on

were

reach

opti¬

more

ready

certain

seems

With

be

to

more

they

credit in

consumer

major role in the

a

appear

and

than

now

is

credit.

rise

has had

triumvirate

buying,

consumer

sumers

mistic

,

ments

sion

holiday period

bring a decline
in the seasonally adjusted rate of
consumer purchases.
In fact, con¬

it

certain

seems

was

not be expected to

very

strong, and

it

as

The current

i-

u s

of

volume

frantically stocking up in antici¬
pation of wartime shortages.

of

pros¬

b

perous

ened

The

present

they spent in

as

over-all

during the buying
of 1950, when people, fright¬
by the prospect of war, were

rush

are

up¬

momentum

The

durable goods
purchased^ relative
to disposable income is as large

of

tending

point.

the
Con¬

now

automobiles

1939.

go

Prices

up.

course,

in

case

durable

spending twice as
of their disposable income
are

be¬

ever

expansion, ift July,' fore. Thus, it appears that this
August and September, consumer area is one in which boomtime
spending moved at an annual rate activities could be overdone in
of $256 billion. This is $20 billion
1956, unless caution and restraint
rent

business

above

the

previous

record.

Since

early 1954, consumer spending has
been
rising more rapidly than

exercised by public authorities
and
others
concerned
with
the

are

extension

wide range of
services. The Septem¬

goods and

ber-October

buying,

purchases

consumer

decline

due

to

in

new

model

was

trade

day

in

full

swing,

still

higher peaks in the movement of
goods to consumers appear to be
in the making.
From

the

in

now

there

consumer's

point

the

labor

force

than

during the wartime
Wages continue to
with
the
result
that

were

after-tax income is at

a

new

peak.

Furthermore, there has been little
recent change in the level of con¬
sumer

prices,

it did

that

so

the

dollar goes as far

sumer

con¬

today

as

In this stronger buying
position,
it is to be expected that the con¬
would

sumer

buy more liberally.
important point is that the

The

has

consumer

spend

been

inclined

larger proportion

a

of

to

his

;ifter-tax income than he did be¬
fore.
In addition, he has used a
much

larger volume of credit in
expanding his purchases than ever
before.

The

extent

crease

in

sumer

will be

Demand

have

lines
shown

creased

this

in¬

used by the con¬
pointed out later.

Durable
All

of

credit

Increased

of

for

Consumer

Goods

,C

ue

the

Bronx

next

attention is
ond

carry

of

less

a

problems for

point

the

that

the

influence

buying.

an

address

62nd

Annual

Board

of

future.

giry, Dec. 5, 1955.




view
our

is

It

well

known

that

this

ex¬

pansion has

recent

years.

World

War,

been large in
Since the Second

plant and equipment is

our

estimated to have increased

ly
the

near¬

100%, and the increase since
beginning of the Korean War

has

from

been

plant

about

and

reached

a

50%.

equipment

In

1953,

expansion

previously unachieved
$28 billion. The rise in

record

of

recent

months

will

year

vious peak.

As

we

are

all know, very

now

plant and

under

the holders
the

way,

of real

estate, shared

increase.

has

ing the
credit

advanced

In

year.

of

debt

sharply dur¬

total,

outstanding

neighborhood
thari

is

has

consumer

of

much

grown

A

consumer harrowing has

of

been for

automobiles

and

durable\goods.
of

credit in the home

unprecedented rate of
a

of

total

it

But

billion

bringing the
$88 billion at

present

the

some

time.

The

consumer

of production, when con¬
buying steadies down, is

types

likely to reduce the need for ad¬
ditional

plant

in

certain

goods lines.

durable

1

\

.,«•

the third place, while
we
all agree that increased pro¬

In
may

duction

of

goods

services

and

is

desirable, in that further increase
the standard

of living depends
it, a large annual increase in
plant and equipment is not the
sole requisite for greater produc¬
in

upon

tion.

Larger

over-all production
in the economy also is dependent
upon
adequate
personnel,
im¬
proved skills and working habits,
better methods, stronger over-all

plant organization, provisions for
expanded working capital, better
with

coordination

sales
efforts,
industry with
industry and better balance be¬
tween industry, trade and
agri¬
culture.
Expansion of plant and

better

integration

equipment without due regard for
other

requisites

of

production,

should it occur, would

not insure

steady progress in production.

at

studies recently
that the plant and

capacity
faster

a

have

may

rate

since

1950

than has the output of our indus¬

Unfortunately, complete fig¬

try.

not

are

ures

available.

We

do

know

that, insofar as industrial
plant is concerned, it has been
large enough during the past sev¬
months
of

the

at

to

meet

consumer

time,

same

the

and,

build

up

inventories.

If the present inven¬

tory

continues,

trend

an

exces¬

will, at some point, become a force
tending to reduce the demand for
plant and equipment.
Fifth, the individual firm can
quickly slow up its plant expan¬
sion

if

the

outlook

becomes

less

promising. Further plant outlays
may
be terminated, and, Jn en¬
suing years, the growth factor
may
be
expected to right
the
situation.

much more extensively than for¬
merly, and the credit authorities
have

indicated

their

it

time

credit

is

should

that

belief

that

expansion

steady down.

ation is different.

plant

Construction of

facilities

and

curities

is a part of
daily activity of the economy.
sharp drop in plant expansion

by the Federal Re¬
serve
System, the tightening of
mortgage credit by Federal agen¬
cies, and so on.
In view

the

of

persistence of a
strong demand for credit, and t~e
prospect for its continuation in
1956,

the current action on the
monetary authorities in
tightening credit is a very appro¬
priate one. Its effectiveness, how¬
ever, will be dependent upon the
support
of the
entire
business
community.
The task of credit
part

of

will

control

in

credit

be increasingly

the

future,

policies

come

diffi¬
tighter
into conflict
as

with projects which seem essential
and

as

politicaf pressure for easier

credit

is

Particularly
circumstances, it is
reassuring to know that credit
authorities are carefully and con¬
scientiously applying broad km"''under

applied.

these

theirs.

It is clear that current

in

the

three

and

plant fa¬

credit

—

is

closely interrelated. The increased
use

credit

of

had

has

important

expansion of
the latter,
in turn, has influenced the broad¬
ening of plant and equipment ex¬
pansion programs. This interrela¬
tionship
makes
it
still
more
important that credit not be al¬
bearing

upon

lowed
it

to

the

demand

consumer

and

expand too rapidly, and

increases

still

further

sponsibility resting

the;

that

of

1955.

This

would

make

1956, by far, the greatest year for
plant expansion that we 'have ever
experienced.

expansion is
we

need

sion
can

This

is a very impressive out¬
Nonetheless, there are some
important questions to be consid¬

in

a

very

level

1956

be

whole, steady
important. Thus,
a

of

plant expan¬

which, bty and large,

sustained

in

1957

later years.

'•

and

in

from

there

areas,

ered

before
on

we

can

say

that this

the positive side.

In the

1956.

The
use

in

area

Use of Credit
of

credit

which

is

recent

the

develop¬

are

other points in the

one

are

high

of these.

of

production, present stocks
goods are not large relative

of
to

sales,

due

volume

to

of

buying

consumer

been

rising

1956

if

in

inventories

But

1955.

during

be expected

may

remains

extraordinary

the

months.

recent

A

recent

to

consumer

second

strategic point is the

sales

reached

next

point of about 7M> million in 1955,

of

York

buying,

described

Pressure of demand upon

productive
much

more

above.

existing

capacity
has
made
plant and equipment

business
has

activity in recent months

been

stantial

The large increase in
made

possible, in sub¬
degree, by increased use

of credit.

The current advance in

field

suggest

of

that

mort¬

the

ob-:

A

fourth

factor

in

the

outlook

Although

the

Budget Director has recently
estimated that a balanced budget
is possible for the current fiscal

his estimate, as of the mo¬
ment, does not include any reduc--

year,

tion

in

taxes.

Nonetheless, his
has seemingly strength¬
on
the part of the

'statement

ened

hope

public.!.that tax relief will
be
forthcoming. The size of the pub¬
lic debt and the difficulties of bal¬

ancing the budget in recent years
suggest that a balanced budget
and

reduction

some

the

in

debt

might well be accomplished in the
next fiscal year.
An alternative,
of

would

course,

reduction

in

be

taxes.

possible

a

such

But

a

i

Summary

A summary of

tive to
made

the

are

rounding out the final

weeks of

the

1955 at peak levels,
of

momentum

achieved
to

sure

might be

follows:

as

We

these points'rela¬

1956 outlook

in

and

business

months

recent

seems

it through the first
to a new high
record.
This may further stimu¬
late the
three major propelling
carry

of

quarter

forces

of

1956

the

boom

and

of

use

mism

credit.

consumer

—

buying,, construction

facilities
opti¬

of

General

growing out of these devel¬

opments might carry business to a
still

higher and

vulnerable

more

position in the latter part of 1956.
Only the exercise of care in these
will

areas

to

vance

of

success

direction

the

keep

rate

of

ad¬

moderate; and
proportions. And the

more

wholesome

in

efforts

will

be

have

and

during

car

sales

been

on

suggest

of

this

reflected

latter

in

the

inventories,

gressional action
There

is

on

little

taxes.

doubt

car

•

but

that

is

1956

going to be a good year,
one
comparable
with
our
best
years thus far.
A major uncer¬
tainty of the coming year relates
to our ability to manage business
wisely under continued favorable
circumstances.

If further business

improvement early in 1956 is al¬
lowed to generate excessive busi¬
enthusiasm, the boom might

ness

much farther and subject

carry on

to greater difficulties later

us

on.

major question relative
1956 is not so much "Will we

Thus,

a

much prosperity?"

so

Reynolds Adds to Staff

/

(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif —Mar¬

F..

Domer,
rence

Nichter

P.

have

Rathbun
with

Reynolds

gomery

Jr., Chester L.
L. Horn, Law¬

Conner,
Charles

Street.

and

&

N.

Stanton

associated

become

Co., 425 Mont¬

Mr. Rathbun was

previously with Walston & Co.

Forms L. M. Ladat Co.

steady.

influenced by the upsurge in con¬

year.

the

is the very popular subject of re¬
duction in Federal taxes.

round
buying

in¬

strongly

in

expected total for 1955.

tin

the

How¬

ments

property.
by government

statements

boom

rate

off -in
third

the
the

have prosperity?" as it is, "Can we

three

the

Inventories

Despite

They
The

is

and

year

market

jective is to keep mortgage money
adequate for 1,200,COO new hous¬

the shoul- - to

on

where changes will have
influence
on * busine/s
in

have

•

look.

next

residential

credit

gage

re-,

market.

New

Latest

stand

Apart

,.on

as

for

for

The Question of Inventories

McGraw-Hill estimate places next
year's advance at about; 13% over

economy

point of importance in

mortgage

demand

consuincr

of

of

use

expansion

—

expansion

spending,
cilities

areas

automobile

Luncheon

home

sales, the realty market and Con¬

great

£the

third

outlook

cult task which jis

A

have strong repercussions
general business activity. For

reduction
sales in 1956, but this is
by
certain.

movements

greater
expansion
is
planned for 1956. The most recent

would

the

moderate

a

edge and experience to the diffi¬

suggest that there may be
danger of overdoing the expansion

of

A

economy

still

de¬

means

the

held

the

and

a

to

tightening of credit. This

mean

car

cluded increases in the rediscount
rate, the sale of government se¬

ders of credit authorities.

the.point c-f view of
economy as a whole, the situ¬

buying,

unrelated

Many steps
have been taken to tighten credit- reduction, should it occur, would
add; further stimulus to an already
and
keep
the. expansion
from
very active consumer demand.
moving too fast. Tnese have in¬

from

But

the

credit,
record.

on

rise

1955

well as in
has been the
as

Thus, it is obvious that, in re¬
cent months, credit has been used

great

demand

to

largest

year,

debt,

mortgage

cult

some

suggest

more

month

a

to

normal

sumer

dollars

during the past

in

in
no

sub-

very

stanJJal part of the expansion in

up

may

car

not

billion.

than

standard

in

velopment
present

in the. ing units next year. This would
In¬ be very
moderately below the

now

$35

income.

use

entnusiasm

authorities

As mentioned earlier, consumer
credit

boom times. A

the

equal the pre¬

substantial additions to

equjpment

that

suggests

industry and agricul¬
ture, those carrying securities and

at an

sively high volume of inventories

is

been

commerce,

other

is also typical of
swing back to more
proportions of the two

living.

eral

This

has

first place, plans for plant expan¬
sion next year have been

goods

by Mr. Mich¬

Trade,

in
in

onrush

the expansion of plant and
equip¬

loans

part;, to
the up¬

goods is, in

trend

sec¬

holds

demand

expected

ward

may

a

which optimism

to

us

much

year,

being given to

in

area

sumer

at

trend

attention

regarding

is all

consumer

consumer

*Summary of
ener

current

spending are receiving
by business and
credit people. But in our thinking
much

current

few years ago.

a

the

in¬

ending
increase
in

nearly $12 billion. Major groups
borrowers, including those in

The

consumer

to hard

risen

dangers

consumer

of

emergency.

advance,

in

the

ment.

view, there is good basis for the
rise in spending.
Employment is
at a new high point. More women
are

volved

car

change-

largely made up by
expanded department store buy¬
ing.
Now, with the new model
cars ready for
delivery and holi¬
overs,

be

in

equipment

Equipment

Fortunately,

complex

more

sharpest

year

the

bank

to

production methods. This rapid 'mortgage field has also advanced

Fourtn,

a

is

the

began

and,

of

ible to model
in

made

Expansion of Plant and

Increased

goods

1954

of the

one

October,

purchases

of credit.

personal income after taxes.

have spread over

with

lending

of

For

commercial

durable

and, in rrrany-cases, more susc^

soft

The

record.

on

stalment

per

bank
end

date, has been

faster

Automobiles

of

for
the

dollar of output
than does the production of non¬
durable goods, since production of

shift

are,

"soft," goods
Production of

or

goods.

equipment

goods today than they did in 1939.

expended

before

durables requires more plant and

forces

;

non-durable,

durable

to

sumers

have

of

demand

and

from

highest level ever achieved. There
is little, if any, evidence that boom

for

part

a

year

the

advance. Con¬
spend much more of their
income

place,

equipment expansion
has arisen because of
swing of consumer demand

plant

strongest

disposable

second

•

the apparent need for still larger

durable goods have made by

ever,

the

of that

excess

likely to be maintained.

much prosperity?"

American

the

in

industry responsible

rate of advance in

a

it is reassuring to know that this author¬

is now probably at the

economy

put on the hot

have been a tendency
project into the future

may

for them to

ity is carefully applying broad knowledge and experience to a
difficult task. Concludes, question in 1956 will be "Can we
so

of

produc¬

planning next year's plant and
equipment construction. And

business will carry over into 1956, points
out there may be danger in three closely related areas; viz:
(1) consumer buying; (2) expansion of plant facilities; and
(3) the use of credit. Stresses increased buying of durable
consumer goods, and the risks that lie in over-expansion of
plant and equipment. Discusses current Federal Reserve credit

stand

of

for

City

present prosperous

restrictions and says

loss

fact,

lack

has

seat those in

Economist, Chase Manhattan Bank, New York

New York bank economist, asserting

of

tive facilities

MICHENER*

In

necessary.

because

sales

Thursday, December 22,1955

...

Automobile
a

new

high

weeks, 75% of
reported to have
credit.
Current reports
some

DENVER,

Colo.

—

Ludovic

M.

Ladet has formed L. M. Ladet Co.

with

offices

in

business.

California

the

Building to engage in
Mr. Ladet

a

was

securities
formerly

are

somewhat

less

consumer

an

officer

of

Radinsky, Inc.

Buerger,

Ladet

&

Volume 182

Number 5492

.

.

The Commercial and Financial Chronicle

.

(2747)

New York Stock
Exchange'

bership- of Alfred
Oliver

Weekly Firm Changes
On Dec.
member

Exchange,

Dec.

31, George A. Corroon,

of

the

New

member

of

the

New

will

York

Fowler

Now Issues

On

;

from

2

the firm

Cabell Hopkins Co. i
! To Be NYSE Member

name

Koerner, 120 Broad¬
New York City, members of

way,
the New

to

William

W.

considered., \

Dec. 29

Herbert

transfer

of

considered

York

Stock

Exchange,

will be changed to Koerner &
Co.

Rosenau

the Ex¬

from

J.

the

by the Exchange.

P.

the

James

Erdman to John H. Swift will be

mem¬

Be Koerner & Co.

to

Effective Jan.
of Dammes &

change membership of Herbert

partnership in Seeley & Lindley.
Transfer of the
Exchange

Name

Henry, will be con¬
the Exchange on

by

29.

will be

Stock

withdraw

to

change membership of Thomas P.

will retire from part¬

nership in Adler, Coleman & Co.
-On Dec.
31, James W. Brooks,

t

Exchange,

Thurber

On Dec. 29 transfer of the Ex¬

Stock ;

York

B.

sidered

E.

Dammes

will

firm Dec. 30.

F.

retire

On Jan. 2

Byrne, Jr., member of

Stock

Exchange will be

mitted to

partnership.

ad¬

Form First Houston Sees. \
HOUSTON,
ton

COLUMBUS, Ga.—Cabell Hop¬

kins

&

Bank
bers

change

been

Co., Inc., Fourth National

Building, will become
of

the

San

mem¬

in

New York

Stock Ex¬
Jan. 3. Officers will be

on

the

H.

Hopkins, President, and
Swift, who. will acquire

Texas—First Hous¬
Securities
Corporation hau
formed

Jacinto

with

offices

Reginald

dent;

D.

Lorerr

Crocker,

E.

Brown,

President;

Alexander

Treasurer;

Exchange membership, Vice-

President.

in

the

Building

to engago
securities business. Officer:!

a

are

W. Cabell

John

7

and

John

W.
L.

Presi¬
Vice-

Head,

Welsh,

Secretary.

•

City and County of San Francisco
California
ISSUES, AMOUNTS, RATES

I

".

AND

6%, 3%%, 2Va% and 2%

YIELDS OR PRICES

$1,2C0,CC0 Street Improvement Bonds—1947, Series H
$2,000,000 Off-Street Parking Bonds—1947, Series B
$1,500,000 Recreation Bonds—1947, Series F
$1,GC0,C00 Seware Treatment Bonds—1948, Senas E

|

•

Dated

$1,000,000 Firehouse Bonds—1952, Series B

Various Purpose Bonds

January 1, 1956

Due

'

January 1, 1957-71, incL

-

.*

$2,500,000 Sewer Bonds—1954, Series A
,.*• $1,500,COO San Francisco
Hospital gpnds—1954, Series A
$2,500,000 Laguna Honda Home and Hospital
Bonds—1954, Series A
..,

.

(Accrued interest

$ 345,000

345,000
345,000
455,0C0

;

Yield

Rate

Due

6%

1957

6

1958

1970
1971

,

1961

2

1962

2

1963

2

1964

2

1965

1,155,000

2

1966

1,155,000
1,155,000

2

1967

•1,155,000
■T, 15 5,000
•1,115,000

2A
2A
2A
2A

1968

The First National

N. T. t S. A.

registerable only

Paine, Webber, Jackson & Curtis
"

as to

investments in

"

the State of California for
various

tions of the
and

ad valorem taxes for the

City Bank

upon all property within the
of San Francisco
subject to taxation

City and County
by said City and County

(except certain intangible personal property, which is

California for trust funds and for other

[lyth & Co., tr.c.

Weetien&Co.

Lehman Brothers

Seattle-First National Bani

Clark, Dodge & Co.

ble

at

limited rates) without limitation of

llarrlman Rip'ey & Co.

F.S.Kcseiey&Co.

The Boatmen's National Bank

-

The Illinois Company

"

Incorporated

New York Hanseatic Corporation
■

■

Phelps, Fenn & Co.

American Trust

Feynclds & Co.

Keller, Bruce & Co.

Trtst Company of Georgia

William R. Staats & Co.

Shcarson, Hammill & Co.

G.C. Haas & Co.

-

;

' V.'ra. E. Pollock & Co., Inc.

-

Stone & Ycirrgterg

National Bank of Commerce

[Ills & Co.

of Seattle

A. M. Kidder & Co.

Kaiser & Co.

Northwestern National Bank

A. G. Edwards & Sens

Seasongccd & Meyer

of

Ginther, Johnston & Co.

Cempsey-Tegeler & Co.

•

Davis, Skaggs & Co.

Stern Brothers & Co.

H. V.

r

Brush, Slocumb & Co., Inc.

Hooker & Fay

Arthur L.

Wright & Co., Inc.

H. E. Work & Co.

Kean, Taylor & Co.

of Boston

Irving Lundborg & Co.

Kill Richards & Co.

Prescctt & Co.

Sattley & Co., Inc.

Fred D. Blake & Co.

ecember 20, 1955




J. Barth & Co.

Rcokland-Atlas National Bank

Minneapolis

I

Van

Shuman, Agnew & Co.

The Continental Bank ard Trust

/

Wagenseller & Durst, Inc.

Company

F. S. Smites & Co.

5

Salt Lake City, Utah I

Alstyne, Noel & Co.

Magnus & Company
First of Arizona

Company

J

Walter Stokes &

taxa¬

amount.

San Francisco

R. W. Pressprich & Co.

--Provident Savings Bank & Trust Company

Lawson, Levy & Williams

Schatler, Necker & Co.

Kenower, MacArthur & Co.

rate or

4

Eldredge & Co.

R. D. White & Company

Rodman & Renshaw

payment of said bonds and the in¬

terest thereon

■*

Kalman & Company, Inc.

opinion
legally binding obliga¬

City and County of San Francisco and said
City
County will have power and will be obligated to
levy

Incorporated

,

purposes, in the

of counsel will constitute valid
and

are
offered when, as and if issued aid received by us and
subject to approval of legality
by Messrs. Orrick, Dahlquist, Herringlon, &
Sulcliffe, Attorneys, San Francisco, California.

-

Freeman & Company

to be issued under
provisions of the Charter
City and County of San Francisco and the laws of

The above bonds

Incorporated

,

bonds,

of the

are
legal investment in New York
for trust funds and savings banks and in
California for
savings banks, subject to the legal limitations
upon the
amount
of the bank's investment, and are likewise legal

of St. Louis

Schcellkopf, Hiitton & Pomeroy, Inc.,
-

These

both principal and interest.

We believe these bonds

of New York

Merrill Lynch, Pierce, Fenner & Beane

■

may be invested in bonds which are
legal
for savings banks, and are eligible as
security
for deposits of public moneys in California.

opinion of counsel, interest payable by the
City
and
County upon its bonds is exempt from all present
Federal and Stale
of California personal income taxes
under
existing statutes, regulations and court decisions.

1960 Maturity includes $75,000 Par
Value Street Improvement
Bonds— 947, Se-ies H,
bearing 3/4% Coupons and $380,000
Par Value Other Purpose Bonds
bearing 6% Coupons.

Andrews & Wells, Inc.

funds which
investments

In the

*

Eank of America

(January

the office of the Treasurer of
the

tion ol $1,000

100

1960

2X

1.285,000
1,155,000

.

at

100

1959

6&3K%*

935,000

,

or

■uo%
1.75%
1.85%
2.00%
2.00%
2.05%
2.05%
2.10%
2.10%
2.15%
2.15%
2.20%
2.20%

•665,000
830,000
,

(

1 and July 1) pay¬
City and County of
Francisco, in San Francisco, California, or at the Fiscal
Agency of the City and County of San Francisco in New York
City, at the option of the holder. Coupon bonds in denomina¬
able

Price

1969

6

interest

t *

San

added)

Coupon

.•

"'Amount

:

to be

Principal and semi-annual

^

Company
Company

Stern, Frank, Meyer & Fox
C. N. White & Co.

1

The Commercial and
8

Financial Chronicle

Thursday, December 22,1955

...

(2748)
Corporation, 111 Broadway, New York 6, N.
an analysis of Air Control Products Inc.

ties

Y. Also

available is

Dealer-Broker Investment
Recommendations & Literature
Review—New booklet—Harris, Upham &

Energy

Co.,

Wall

information

&

quality issues—Seligman, Lubetkin

Co*, 30 Pine Street, New York 5, N. Y.

Investment Opportunities in
rities

Japan—Circular—Yamaichi Secu¬

Conventions

S. Taxation

—

Analysis

Securities Co., Ltd., 61 Broadway, New York 6,
In the same issue "Nomura's Investors Beacon"
sions

of

Bank

Outlook,

Rates,

Co.,

Chemical

and Tokyo Electric Power Co., Ltd.

Investment

Report

—

v-':.

Stout & Co., 50

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
and

National

York 4,

the Parker House.

—

Investment Traders Association

at the

with

A.

reception

Eisele & King, Libaire,

(New York City)

March 9, 1956

York

New

Security
30th

Association

at the Biltmore

1956

24-27,

Oct.

Dealers

annual

dinner

Hotel.

(Palm

Springs,

Calif.)

Co.,

&

10

National

Post

Security Traders Asso¬

ciation Annual Convention.

—

C. D. Pulis & Co., 25 Broad

Nov. 3-6,

(Hot Springs, Va.)

1957

National Security Traders Asso¬

ciation Annual

Co. Incorpo¬

rated, 44 Wall Street, New York 5, N. Y.

Convention.

With L. C. Berendsen

N. Y.

Uranium—Bulletin—M.

and

luncheon

a

to be held at 12 noon.

|

Stubnitz Greene Corporation—Analysis—Blair &

Quotation

Philadelphia annual dinner
Bellevue-Stratford Hotel,

of

9, Mass.

Circular

(Philadelphia, Pa.)

March 2, 1956

Street, New York 4, N. Y.

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

market

Co.

Strong, Cobb &

Traders Asso¬

ciation annual winter dinner at

analysis of Transamerica Cor-'

views—Lerner

Co.—New

Office Square, Boston

(Boston, Mass.)

Security

Boston

Montgomery Street, San Francisco

—

Committee

Meeting at the Drake HoteL

Inc.—Analysis—Dean Witter & Co.,

Analysis

(Chicago, 111.)

National

ciation

Broadway, New York 4, N. Y.

Cement

Riverside

—

the

at

National Security Traders Asso¬

Drive, Beverly Hills, Calif.

Fibreboard Products Inc.—Analysis—

45

Co.,

Pinellas Industries, Inc.

up-to-date com¬

—

of Chicago
Drake

Club

dinner

Hotel.

Ltd.—Analysis—Cantor, Fitzgerald

6, Calif. Also available is an
poration. •

—

Over-the-Counter. Index—Folder showing an

yield

&

Witter

Dean

National Association of
Companies, 61 Broadway, New York 6, N. Y.

Mutual Fund Shareholders

Corp.,

Pabco Products Inc. and

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

Mitsui

—

Spring Street, Los Angeles 14, Calif.

632 South

discus¬

are

Also in the same bulletin is

Corp.

Co., Inc., 232 North Canon

North American Aviation,

N. Y. Also

analysis of Business Results and

of

analyses

and

Sumitomo

Ltd.,

and

Petroleum

National

Nomura

(Chicago, HI.)

1956

annual

Midland Corporation.

Chemical

&

Southern

the

at

Bond Traders

52

Co., Inc., 150 Broadway, New York

&
—

Dinner

ter

Hotel.

Feb. 10, 1956

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

Japanese-U.

Bruns, Nordeman & Co.,

—

As¬

sociation 21st annual Mid-Win¬

Analysis — Amott, Baker
38, N. Y.
Lehman Corporation—Research study—Harris, Upham & Co.,
14 Wall Street, New York 5, N. Y.
Mexican Light and Power Company — Analysis — New York
Hanseatic Corporation, 120 Broadway, New York 5, N. Y.

Company,

Income Stocks—List of 30

Baltimore Security Traders

Jan. 30,

Data

(Baltimore, Md.)

Jan. 27, 1956

Jan. 30, 1956

&

International Banking De¬
partment, 55 Broad Street, New York 15, N. Y.
Trust

—

Laboratory for Electronics, Inc.

possessions—Booklet-

1956 in the U. S. and its

Manufacturers

—

Chicago.

Marine

Aluminum

Field

Investment

Analysis in current
issues of "Gleanings"—Francis I. du Pont & Co., 1 Wall St.,
New York 5, N. Y. Also in the same issue is an analysis of
Rio Grande Valley Gas and four Portfolio packages.

New York 5, N. Y.

way,

Company

on

In

Jamaica 32, N. Y.

Street, New York 5, N. Y.

Kaiser

Earnings—Bulletin—Laird, Bissell & Meeds, 120 Broad¬

Holidays in

Trailer

International Petroleum

containing com¬
mentary on fusion, thorium, and uranium oversupply—
atomic map also available—both contain portfolio as of Sept.
30,1955—Atomic Development Securities Co., Inc., 1033 Thir¬
tieth Street, N. W., Washington 7, D. C.

Bank

Inter City Securities Corp.,

Co., Penobscot Building,

Trust Company of

New York 5, N. Y.

Confusion—Quarterly report

Fusion

Atomic

—

Analysis — Smith, Hague, Noble
Detroit 26, Mich.
Hamilton Manufacturing Company—Analysis in current issue
of "Business and Financial Digest"—Loewi & Co., 225 East
Mason Street, Milwaukee 2, Wis. Also available in the same
issue is an analysis of Continental Illinois National Bank and
&

that the firms mentioned will be pleased
send interested parties the following literature:

120 Broadway,

Memorandum

—

Hillside Avenue,

Fruchauf

It is understood

Atomic

EVENTS

Broadway, New York 5, N. Y.
Ford Motor Co.
167-08

to

COMING

Cummings & Co., 100

Flying Tiger Line—Analysis—Bregman,

(Special to The Financial Chronicle)

Cleek, Paulsen Building, Spokane

BURLINGTON, Iowa—Glenn F.

1, Wash.
*

*

/ir,.//

;v

*

■

Most

has

become

with

connected

..

L. C. Berendsen Company, Farm¬
American Cyanamid Company

Analysis

—

Laird, Bissell &

—

American

Express Company—Analysis—Ira Haupt & Co., 11J.
Broadway,/New York 6, N. Y.
: i-

Anaconda Copper
80 Wall

Anderson
&

Co.—Memorandum—General Investing Corp.,

Street, New York 5, N. Y.
Prichard Oil

—

Review

—

i-

Corporation

BOSTON, Mass. — Richard A.
has been added to the
staff of Draper, Sears & Co., 50

Anthony
SAN

Sutro Bros.

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

Asbestos

FRANCISCO SECURITY TRADERS

Richardson

ASSOCIATION

meeting of this association the following officers
and directors were elected for the year 1956:
At

Limited—Review—James

&

a

recent

Corporation

—

Bulletin

—

Canteen

Company

F. S.

De Witt Conklin Or¬

&

McKinnon, 11 Wall Street, New York 5, N. Y.
able is a survey of Fixed Income Securities.
Basic

Atomics,

Inc.—Circular—J.

F.

Reilly

Boston Stock Ex¬

Moseley Adds

(Special to The Financial Chronicle)

is

Also avail¬

Co.,

&

Inc.,

Mass.—John Worrall

BOSTON,

America—Report—Thomson

of

York and

New

ganization, 100 Broadway, New York 5, N. Y.
Automatic

Street, members of the

Congress
changes.

Sons, 173 Portage Avenue, East, Winnipeg, Canada and Royal
Bank Building, Toronto, Canada.
Atlas Plywood

With Draper, Sears
(Special to The Financial Chronicle)

t

Corporation

& Merchants Bank Building.

ers

Notes

NSTA

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

now

Co.,

with F. SI Moseley &

members of
the New York and Boston Stock
50

42

Street,

Congress

Exchanges.

Broadway, New York 4, N. Y.
Bymart-Tintair, Inc.—Report—General Investing
80 Wall

.

With Harris, Upham

Corporation,

Street, New York 5, N. Y.

(Special to The Financial Chronicle)

Charles Bruning Company, Inc.

— Analysis — William
Blair &
Company, 135 South La Salle Street, Chicago 3, 111.

Columbia

Gas

Broadway,

•

on

5, N.

Y.

Also available is

Co.,
a

120

Denison

Limited—Analysis—R. A. Daly
Company, Limited, 44 King Street, West, Toronto 1, Ont.,

tenden &

Dainippon

Company

Revised analysis

—

Co., 209 South La Salle Street, Chicago 4, 111.

Spinning—Analysis

in

current

issue

of

"Weekly
Co., Ltd., 6, 1-chome,
Kabulo-cho, Nihonbashi, Chuo-ku, Tokyo, Japan. Also in the

same

issue is

a

Company—Analysis—S. C. Parker
Ellicott Square, Buffalo
3, N. Y.

Eastern Stainless Steel

—

Report

—

&

Co., Inc.,

J. R. Williston & Co.,

Directors:

Henry

choral

group

the financial

of

the first television appearance of a

'

Reynolds Adds
RALEIGH,

is

-

The
:

>r'

choir,

,

comprised

:

of

20

Wall

is under the direction of Sal Rappa,

Street securities traders,

C.

O.

Jesse

—

&

with Reynolds

Co., .120 South Salisbury Street.

With

Zilka, Smither

(Special to The Financial Chronicle)

OREG.—Owen J.

PORTLAND,

Card has joined the

Smither

of F. S. Moseley & Co.

N.

now

&

Co.,

'

Edgewater Steel Company—Card memorandum—Aetna Securi¬

Securities

Carolina

(Special to The Financial Chronicle)

community, the glee club of the

association, announced.

Broadway, New York 6, N. Y.

with

Bank.

Perenon, Henry F.

Traders Association of New York will appear on the
Igor Cassini Show, "Million Dollar Showcase," over WABD,
Channel 5, from 9 to 9:30 p.m., on Friday evening, Dec. 23, Edward
J. Kelly, of Carl M. Loeb„ Rhoades & Co., and President of the

ll5

Charles R.

—

affiliated

Corporation.

Security

1031

now

with

viously

Bishop

In what is believed to be

brief analysis of Nissliin Cotton Spinning.

Duriron

of

STANY CHORAL ON TV

Stock Bulletin"—The Nikko Securities

.

is

Harris, Upham & Co. He was pre¬

Swift & Co.;
William Dondero, J. Barth & Co.; Albert A. Hewitt, First Cali¬
fornia Company; Barry Stone, Blyth & Co., Inc.
Board

Crut-

—

D. Williams

Secretary-Treasurer—Everett D. Williams, Wells Fargo

'

Continental Assurance

Everett

President—Rudolph T. Sandell, Shuman, Agnew & Co.
Vice-Fresident—Richard J. Payne, Walter C. Gorey & Co.

Mines

Canada.

I

Rudolph T. Sandell

report

Abbott Laboratories.

Consolidated
&

System—Analysis—Harris, Upham &

New York

RALEIGH, N. C.

Reynolds

Alder Street,

staff of Zilka,

W.

S.

813

Inc.,

members of the San

Francisco Stock Exchange.
T
JtOt-.VJ.

'>0

Uoimrca jiecttrtties
©o., Sid.

^rasntts (5reefuuts
; 1

and

Best

Member

61

BOwiing

become

connected

Green

Office

Seventh Street.

SACRAMENTO, Calif.
'

•

9-0186

Tokyo

E.

Stein

ties

Broadway, New York 6, N. Y.
Head

,

Ervin Stein Opens

Japanese Stocks and Bonds

Tel.:

CuoAurj.

Calif.—James

(Special to The Financial Chronicle)

without obligation

j

ITlulMM.t

Dempsey-Tegeler & Co., 210

West

.

on

*.,

has

Sword

H.

Material and Consultation

is All

(a Tn.

ANGELES,

N.A.S.D.

Broker and Dealer

s




/Onn.inl

(Special to The Financial Chronicle)

LOS

with

Wishes

Troster, Singer & Co.

DEPENDABLE MARKETS

DEMPSEY-TEGELER & CO.

is

conducting

—

a

Ervin

securi-

business from offices at

Broadway.
mprlv

with

1414

Mr. Stein was forRichard

A.

Harrison.

Volume 182

Number

5492

.*%

The Commercial and Financial Chronicle

.

(2749)

be created

The Role of Common Stocks
In

As

The Wellington

Investment

mutual

organization,

increasing role in

an

term outlook

for

&

stocks is good, but there is

keep

can

There is nothing new about the
of common stocks in a con¬

servative

investment

However,

in

of

automation

and

The

still in

Common

Pennsyl-

v a n

i

acterize

of

York,

wide

use

common

and

the

factors

the

char¬

which

long-term

outlook

will help to direct our thinking in
the selection of common stocks.
It

clear

seems

that

the

business

readjustment

investment

the various segments of the econ¬

relatively

a

recent
o

devel-

Therefore,
turn in

we

1954 marks

resumption of
long-term growth.

the

Historically,

to

define

has been based

few

basic

like

country's

long-term growth

our

Increased pro¬

on:

invest ment
A.

Moyer

that

we

concepts

Kulp

and

ing of this

rate) and increase in population.

have

may

the minds

ductivity per man-hour (current¬
ly estimated at about lVz% annual

a

s o

meeting

a

of

full understand¬

a

interesting sub¬

very

ject.
basic

a

be

can

investments

sense,

classified in two divisions

—namely:

first

is

traditional
diums:
The

basic

Bonds

"claims

investment

and

"pur¬

a

concept which
consideration

in recent years by necessity.

20

past

Dur¬

lower

years,

in¬

terest rates
on
bonds, mortgage
investments, the higher cost of liv¬
ing (brought about by two great
war-time inflations and high per¬

sonal income

dollar

taxes) have shrunk¬
purchasing power of
investments so drastically
real

that the investor's relative

ing in society
These

other

severely shak¬

was

factors

stand¬

more

than

any

considerations, resulted in

re-examination
vestment

traditional

of

thinking.

quent, result

The

integral part of

in¬

the gradual

was

a

conse¬

ceptance of common stocks

ac¬

as

conservative

an

in¬

vestment.

The

of

use

irregular,

the

sometimes

effect

since

common

growth.
in

over-all

each
In

will

years.

rise

span

position

in

our

with

a

purchasing

society.

sound

dollar

tween

his

balance

investments

States and abroad.
economic

in¬
be¬
and

investments,

power

confidence.

vestment

The

program

ter able to

cope

balanced

in¬

should be bet¬

with world wide

social changes, inflationary trends
and also
of

participate in the benefits

rapid and far-reaching

scien¬

tific developments, such as: Elec♦An

address

by

Mr.

Kulp

before

the

a

in

stock

the

upper

made

for

po¬

It appears that

growth

is

proceeding
in Western

are

1960's

peculiar to the

are:

favorable

pears

in

both

Nevertheless,

areas.

rise

should

ap¬

these

of

if the busi¬
off
about

and

taper

concerned

international

do¬

political

varying

depths

durations

omy

and individual companies.

few

very

still.

in

both

situations

Some

and

some

The

entire

the

econ¬

will

A

stand

industries

will

almost disappear.

may

approach re¬
of all, that an ade¬
portion of the account is

(3)

Rapid

and

far-reaching
scientific developments.
A

study

of

population growth
in population to

suggests

a

perhaps

190

1965

possibly 205 million by

and

1970.

rise

While

million
the

people

labor

force

grow, it will

increase at

rate

the

because

by
will

slower

a

increased

popu¬

lation is expected to consist large¬

ly

of

those
65.

over

not

fewer

14

those

and

places labor in a
bargaining power, be¬
only is labor working

strategic
cause

under

This

hours

week, but the
worker has to produce a larger
amount of goods and services to
per

satisfy the rising standard of liv¬
ing.

It

high

means

and

rising

wage rates.

Two
have

major changes in incomes

taken

place

in

the

period

1929-1953:

i(a) The real income
has

increased

family

per

(b)

Income

created
ket.

stocks.

common

They

be

and

family
1953.

In

54%

in

terms

of the

ple

units making

units

from

1929

to

mar¬

$4,000

the

optional
into

play

These

of

average

toward

inflation

of

use

common

well

as

fiduciary in¬
a long-term

as

vestors, appears to be

development.

It

continuous

a

rather
the

this

won't

bull

trend

already
top

clear

tween

grade

-

guarantee

market, but
emphasize
division be¬

will

companies,

mediocre

companies and "neverdo-wells." The emphasis will be
increasingly on quality, present
and future.

Paul L. Miller V P.

also

Of First Boston

Corp.

such;
dan¬

as

be emphasized as greatly as
is often the case. The most attrac¬

tive

the

and

me.st

dynamic equi¬

ties usually carry a low

yield, ex¬
infrequent times
when everything is cheap. Reach¬
ing for income
usually means
sacrificing the vital quality and
dynamic factors which are the
cept

those

at

esseace

of

common

stock

Paul

The

100

invest¬

First

L.

Miller

Boston

Broadway,

New

Corporation,
York City,

announces

I

ment.

would

that the in¬

urge

con¬

siderations
are
important,
and
corporation bbnds in non-taxable
Where

consideration,
in

stocks

casualty
as

is

income

the

best

an

com¬

the election of Paul L.

Miller

a

as

Assistant

Vice-President.

An

President

the

Vice

-

Miller

the past four years, Mr.

has

been

situated

companies,

com¬

fire

and

and

insurance,
have
great
compared with preferred

In

To Be Erdman

Partne^

Sidney M. Sternbach, Jr., mem¬
ber

the

of

change,

on

New

York

Stock

partner

which

Broadway, New York City,

are

strong financially, deep

management,

for¬

ward-looking and above all, have

in

a

Erdman

&

bers of the New York

Co.,

change.

for

These factors

responsible for the magnitude
housing boom, the auto¬

All

of these Shares having been sold, this advertisement appears
as a matter of record only.

mobile

boom and the generally
improved standard of living.

December 16,1955

NEW ISSUE

This great increased demand for

developments, the stock market
may be subject to wider fluctua¬

goods

tions

a

than

two

have

This

years.

factor

the

stock

would
market

significantly

in

occurred

new

be

the

short-term
enhanced

first

rises

if

into

and services produced by
relatively smaller labor force
employed at higher wages is a
long-term force which has caused
the great rise in business spending

18,035 Shares

Cavitron

for

high-ground.

plant and equipment. It puts
great push behind cost reduc¬
tion, through improved machin¬
ery, new processes and the use of

Corporation

a

A

Need

for

Short-Term

Caution

The advanced stage of the busi¬

rise, together with the higher
stock market level, indicate the
ness

need

for

short-term

caution.

In

new

developments

turn

in

raise the standard of

most

favorably

companies—from both
term

and

long-term

Nor would

situated

the

short-

standpoint.

prudent stockholder
this time be justified in carry¬

at

ing

more

a

common stocks

than the

investment objective called for.

It

might

to

have
for

be
a

modest

new

ments

1955.

a

more

reserve

reserve

common

over

the
can

appropriate
set

stock

coming
almost

aside

invest¬

year.

Such

invariably

as

Common Stock
(Par Value #0.10

per

Sharie)

—•

electronics, automation and atomic
energy.
These expenditures in

other words, one should be certain
that the common stocks held are
the

such

—

have

output
is

per

the

which

resulted

in

the

man-hour

dynamic

higher

needed

to

Price:

$16.50

per

share

living. This

background

in

the

driving force of free
enterprise has been given full
play for the last three years. It
suggests that the economy is like¬
ly to maintain the rapid postwar
growth rate.
Common Stocks and

ative

Investment

a

of

common

obtained jrom the undersigned.

Schuster 8c Co., Inc.

Conserv¬

44 Wall Street

Portfolio

For the investor it supports the

validity

Copies of the Offering Circular may be

stocks

in

a

New York 5,

N. Y.

a

120

mem¬

Stock

vast in¬

the

Ex¬

Dec. 30 will become

conclusion, investment policy
should
emphasize
companies
excellent

with

associated

First Boston since 1946.

stocks.

in

of

corporation in the buying depart¬
ment for

population
demand

consumer

the

Nor should immediate in¬

gerous.

banks

in

Finally,

come

mercial

quantity.

little compared with the dynamic
issues.

These

as

regard them

utilities

changes

in

than

mon

as

period

tneir dividends will rise

years

a

stocks

common

rather

electric

well

over a

as

the

structive attitude should be taken

to

as

oi

almost

industry
promise of aboveopportunities.
A
con¬

income,

can

decline

down-marketsas

give

went

goods and services.
are

which

total

consumer

in

the dynamic areas in

are

merit,

buy quality

for

in

rubber, electronics.

paper,

of

and .the

probably

dynamic stocks and

—

income

discretionary or
spending power comes

will
much

industries, such
petroleum, chemicals, steel,
aluminum,
building
materials,
as

over-riding

of

income

reasonably broad diver¬

in

71%.

concept

be

conservative approach

for

45%

(c) The $4,000 income level ap¬
pears to be critical. At that point

all, investing in the

"defensive

stocks" is liable to be pretty much
of a losing game.
These stocks

sification in basic

accounts.

$4,000 and over in
By 1953 the percentage was

over

The

calls

of

peo¬

called

growing
rapidly moving world.

and

21%

making

1929.

it

change

or

Municipal bonds, where tax

increased

over

hedge,

re-distribution

great middle-class

a

Family

-

investors,

bonds or mortgages—
Having made certain that
liquidity and defensive require¬
ments
are
satisfied, the balance
can
then properly be placed in
both.

vestor look for income elsewhere:

has

so

After

stocks by all types of institutional

87%, while family
40%;

units increased only

defensive characteristics from

bonds.

conservative

—whether

class incomes.

our

quate

should

Population growth.

Above all, we must guard
investing in static com¬
panies which in future years, will
be headed down hill. We must get

against

quires, first

selected

crease

long-term trend

charac¬

range

and

that the

of

must

invested in

range.

and income have led to

Corporate Fiduciarfes Association of All"~Keny County, Pittsburgh, Pa., Dee. 6,




the

investment value

even
more
rapidly
Europe than in the United States

in¬

look to the future with great¬

can

be

litical uncertainties in the United

of

relative

The

18 months, a period

should

lowance

get

com¬

enable the

maintain

to

vestor

vestor

a

Careful selection of

stocks should

mon

er

over

business activity dur¬

looking ahead into 1956, al¬

risk

come

ap¬

quarter.

or

in¬

be

to

appear

consolidation, or a plateau,
implies good business, although
not necessarily making new highs

participate in long-term growth of
the economy and the reasonable
dividend

is
capacity
now

of

past

his

activity

In view of the rapid rise

ing the past

ownership enables the investor to

that

line.

trend

employment, the
rate of progress in 1956 will prob¬
ably slow down until production
capacity has been expanded, pro¬
ductivity rises and the labor force
is
increased
through population

people

stock

1955

s#t-backs

One

companies which have
the ability to protect the purchas¬
(2) Re-distribution of income, "
resulting in great rise in middle- ing power of the investor's dollar

be¬

full

mestic

increas¬

some¬

times

productive

we

in

More impor¬

ing current income.
tant, is the fact that

of

term

-

business

approaching
and

and

long

has

stocks

common

immediate

assurance

progress

other

above

ness

investment

trust

Year-to-year

proaching

wide

received

the

services,

competent ob¬
reasonable as¬

a

me¬

mortgages.

classification

second

ing the

by

seems

sumption.

Since

represented by the

chasing power" is
has

the

envisaged

servers,

low

power.

classification

dollars"

en.

sical volume of goods and

times

dollars.

on

(b) Purchasing

en

a

now

will be somewhat

(a) Claims

The

conditions

existing,
4% annual growth rate in phy¬

as

In

on

Under

(1)

brought

that the up¬

assume

things

»

1953-54

into sound postwar balgnce.

omy

would

go.
-Z4.

as

in

I

these

>xCk\

t,

p m e n

while

probably

1950's and

stocks in trust

is

sound

a
—

teristics which

and

Stocks

A brief look at the business out¬

look

the

the

Long Range Characteristics

atomic

Long-Term Outlook

approach, be¬
a
straight-

not

street.

and

longer lagging, it is

no

Among the long

like

and

that

seem

range

Since

by

is

these 30 stocks repre-* advance
dramatically,
while
others will decline in importance
pay-out, it

on

market is

energy.

our

a

4V2%.

growth
one-way

conservative

a

quarter of such

tronics,

conservative

a

cause

or

country,
i n eluding states

New

480, this indicates a-yield

about

would

program.

parts

some

in

sents

economy.

use

The dividend is estimated at

dividend

pro¬

the nation's productive

up

for

expect progress to be punctuated

of

need

a

stocks

can

line,

around

Holds long-

common

stock

common

dends,

vide active participation in the growth of the economy, careful
selection of stocks of forward-looking well-managed and fully

competitive companies

expect.

and

into line with the expanded

cash plus stock divi¬
with a current value of
$2.90. With the Dow Industrials at

stocks playing

Concludes, since

develop and maintain good
earning power and dividend pay¬
ing ability. It indicates the need

bonds

traditional

of

pay good divi¬
They should be companies

dominantly in the rapid and farreaching changes which we Piust

$18.75

re-examination

investment portfolio.

common

for short-term caution.

selection

being able to

ward-looking,
well - managed,
fully competitive companies which

by

$36.

in

sees common

thinking,

an

economy

economy,
Earnings on the DowJones 30-Industrial Stock Average
for
1955 are estimated at about

of dollar and

power

high personal income taxes have resulted in
of traditional investment

through careful

the

in industries which will share
pre¬

come

fund

pointing out that shrunken purchasing

of

for¬

measured

yields, the stock market has fully

Committee

Fund, Philadelphia, Pa.

analyst of large

dends.

growth

the knack of making good profits

grade

Vice-President and Executive Director of
Investment

and

- earnings
ratios,
dividend
yield, and spread between high-

A. MOYER KULP*

By

,

conservative investment portfolio.
It provides active participation in
the

stock

common

price

Investment Poitfolio

an

by the sale of the least

favorably situated
holdings.

9

Ex¬

.

*

10

The Commercial and Financial Chronicle

(2750)

the

as

finds in

question "Where

to

answer

Upgren
going from here?"

are we

that the central feature of the economy

is the efforts of indus¬

facilities. Points out dangers in this move, but
says, this time, we have great and unusual opportunity to
keep the economy in needed money supplies and banking
reserves.
Holds a more accurate statement of Federal Reserve
try to expand

•>

Lists

is needed.

objectives

brief review of economic

ly

inclusive of inventories)

understanding

to

our

immediately

course

Prior

ahead.

out¬

the

to

the

of

break

in

conflict
Korea

in

1949

had,

we

late

very

in

and

the

first

of

half

1950,

a

sharp

very

economic

re¬

Then

covery.

Korea

came

and

we

pre¬

pared for any

by

emergency
Arthur R. Upgren

launching

a n

immense
fense

production

it did

as

effort.

the heels cf

on

de¬

Coming
econ¬

an

in

duction

tend to induce

in

tion

of about

Such a primary re¬
expenditure
would

billion.

$26

secondary reduc¬

a

expenditures by all those

people who had been the benefifiaries of the former higher rate
outlay and business in¬
vestment. These groups, made up
the largely increased number of
of defense

unemployed in 1954 in the Pitts¬
burgh and Detroit areas especial¬
ly, would be expected also to .be
compelled by the absence of in¬
come

resulting from "no work," to
their consumption expen¬

reduce

ditures

bv

like

a

$26

of

amount

billion.

Nothing of the kind hap¬
pened to produce this "multiplier
effect"

would

which

produce

$52 billion decline in
Gross National Product

or

a

total

our

the

Federal

such

Budget

that

have, in total, produced
in

the

and

substantial

we

I

surplus
budget

surplus

one

War

a

operating at levels of

are

When

we

consolidated

cash

we

recalls

right

now.

in

that

World

for only 32%

taxed

of

Federal

expenditures,
one
can
understand why the price level
two

rose

Wnen

and

-

it

is

further

in World War II

46%
we

of all
can

one

-

half times.

-

recalled

that

taxed for

we

only
expenditures,
why prices were al¬

Federal

see

most doubled. Since the end of the

World

Second

War,

cash

our

budget "take" of the Federal Gov¬
has

ernment

billion in

been

than

more

$5

of cash payments

excess

output.

What

happened was that cer¬
tain policy steps were taken to
make the economy head in a di¬
rection other than fairly deep de¬
pression. These steps were that at
the

recommendation

Eisenhower

of

President

and

Secretary of the
Treasury Humphrey we allowed
the excess profits tax on corpora¬
tions

to

This

expire

had

tax

the

after

conflict

on

been

sending,

it

31,

had

Korean

in

assisted

actually

as

total

Federal

level

half

tax

again

as

happened,
receipts to a
high as at the

peak level reached in any

year

World War II. In

addition,

an

11%

Korean-induced

increase

in

the

made by the Federal Government.

personal income tax

of

to expire at the same time.

tion

stopping of infla¬

practically complete
March, 1951 so that

end of

will

have had

almost

by

full

a

the

we soon

five-

period of great price stability
for
the decline in the
of
agricultural
products
and the decline, smaller, and sub¬

year

except
prices

sequent rise in the price of

important

raw

a

few

Thus,
by these reductions in taxes, -to¬
gether with some further reduc¬
tions

materials.

and

$9

here

By mid-1953

we

had secured

That led to

a

cut

a

in defense expenditures which has
amounted

now

to

$14

Immediately

year.

defense

billion

after

a

these

reductions

expense

additional $10 billion in order

to be in

the

appropriate adjustment to

reduction

defense

{>£

lion

the

annual

I would

these

rate

outlays from $54 bil¬

annual rate to $40

Here
that

in

two

billion.

like to point out

reductions

in

"Tax

billion.

de¬

income

in

reduction

us

in the purchase of
equipment py industry,
a
direct primary
cut

An address

Cerp"*-»te
ton,

Mass.,

by Dean Upgren before the
'Vssoclation, Bos¬
Dec. 2, 1955.

F"'1uc:>*-ie«:




quarter
This

of
is

three-quarters of theoreticrl
expectation the depth of the 1954
business

economic

and

recession.

The abandonment of the

profits tax

on

excess

corporations served

very

substantially indeed to

tain

corporate

appreciable,

eral

the

Federal

which

felt

lowering

serves

like

lion

to

As

result

ease

by

all the ground

to

result of the short-lived

a

recession.

the

full

15% to 20% de¬

cline in total production and sale3.
Gontrarv to the expectation that

fall

from

and-one-half to two times

billion.
the

a

is $22

This

of

rate

as

a company

billion above

not

al-

long

as

the

the

the recession

let

of

and

as

short

lion.

cerned

we

that

know

the
the

let

cut of re-

It

the

was

automobiles

and

and

all

re¬

Now

the

in

We

Army question: "Where
going from here?"
We open

are

ital
at

or

up

$4.0 billion

in

1955

which
when

attractive
on

expenditures

however,

growth

new

not
was

banking

keep

which
up

the

experienced

the extraordinarily
automobiles came

the market.

fast,

poses

will remain about the

of

system

Happily,

negative.

dear

stability

resist

period

boom

excessive

be far

can

economy

consumed

food and

the

as

which
able

and

as

and^ unemplovdamagmg to

durable goods, the conagain adjusts his payment

in

accordance

tion

of

rate

with

such

his

consump-

durable

can

use

arsenal

weapon

every

for

promoting

ules, will all be paid off within a
14-month period, despite spectacular advertising of some
lower
down payment and longer term
plans. In 1954, for example, many
0f

us

recall

may

that

consumers

incurred $29.3 billion of new
debt

sumer

but

few

same

of

year

1953.

In

May

member

pelled by
tary

occurred

that

of

had

banks

consumers

repaid $23.0 billion of such debt,
in

with

slightly lower rate
of purchase of consumer durable
j>r r.

a

goods, I anticipate that

some

stalment
rate of

debt

will

consumer

exceed

that

year,

been

com-

restrictive moneto borrow no less

Bank.

year,

authorities

By

the
had

early

Federal

July of
Reserve

reversed

their

policy to the extent of $2.5 billion, thus enabling the member
banks practically to extinguish all
borrowings and to become possessed again of "excess reserves."
Thus, if there had been—which I
do not mean to suggest was the

same

caSe—a

in the coming year and that State
and Local expenditures will con¬

in 1953,

the instalment plan,

on

Th*s will automatically increase

savings.

consumer

js

menj.
gave

a

more

next year

the

Debt

we

ex<cend

the

to
can

economy

lowered savings
s0

purchase

markedly the

of

consumer

^
.

The£e £avu?f

m l^ge

,

generally

and

so

recently

an-

;

In

the tighter credit
at the present time may already
have
restrained
somewhat
the
plans of builders for erecting new
houses and family dwelling units
in 1956. Here there has been an
addition,

obviously

desirable

restraint

on

credit because by the third quarter of 1955 the hcuse-huilding industry had passed the levels estimated for it for the year 1965.
These estimates were made both
by President Eisenhower and his
advisors and the.Joint Economic

boom

Committee and its advisors. Clear-

ly a growth in housing outlays
following
the
liberal
housing

was

without any

repay-

plan

repayment

res^ore

billion

consumer
durable

Debt

pre-arranged

completely arrested
necessity for extended

trend

it

the

fresh borrowing

nounced by many large American
the industries.
|

more

policies

time

in 1956 the repayment rate on in-

in

than $1.4 billion from the Federal
Reserve

con-

recall

their
■

experience

us

provide both the moneEnc* *J?e
real resources" to finance the desired ineconomic! dustrial expansion for 1956 so
in

expansion.
That

goods,

ln fact, consumers total instalment
debts at present repayment sched-

.

-.

of

of

case

sumer

reduced -probability of.* peasure
inliation the monetary authorities -tary
a

case

for, as it should be, in the
period of purchase, which is also
tne period ot consumption. In the

in-

more

In the

output.

clothing, it is essentially

all paid

we

that

experience

that

beyond

.there is

1956 with the central

$34.4 billion,

price

is the exThe American
consumer
attempts to buy on a
budgeted basis all of his currently

people that the damage of
moderate
inflation?
As long- as ■'

we

The November

oppositely, the

the

-

intentions to build new.cap¬
facilities in 1956 was placed

reserves

ratisfys the Federal Reserve au-

usual

estimates of McGraw-Hill of busi¬
ness

free

all

thorities that they have been
to

feature of the economy being the
extreme effort of industry to ex¬

pand its facilities.

weeks

°.ne

ment

•

con-

period immediThey have "ti?ht-

flatioru. Deflation
the

central

are

the desire to tighten will not con-

Going?

form *of

the

about the

tiniie

lion before the expiry cf 1955;
Are

levels
course

labor supplies,

that'in that

authorities

reserves

attainment of
round figure of $400 bil¬

Where

that

clear

commercial

the

prevents the

the next

r

•

and make the amount of such free

sales.

tories

*

ahead.

recent

In fact, probably only
the inability of industry general¬
ly adequately to enlarge inven¬
tail

business

and

ened" money enough to exhaust in

rise in those months.
9 he month of December promises
to be at a very high rate in both

steel

>

is

ately

entirely completed and there

certainly

supply for the
attain

can

of

monetary

months of October and November
are

of

pansion of output.

in 1956
anything
whmh
could really be called undesirable

is

least

the

authority and the Treasury, the
today over debt recedes in
importance.
Debt increases are
just as essential a part of an ex-

needed

to

run

money

we

inflation.

At

in

worry

*

to

out

run

of economic

coming close.: to
producing a Gross National Prod¬
uct at the annual rate of $400 .bil¬
economy

inflation

and

tenaency tor,

Given

In adcentral banking system

our

expansion

time

nresent

a

available

1933-1939,

1873-1879.

supplies

adequate

an

well

at

of

declines

unemployment

and

have the great and

we

opportunity

volume

low of 1954.

Probably

hazard

by

reserves.

dition,

$392

one-^

such

has

past

The

rise in employment to exhaust all

they could be lowered and
not go below levels which

yet

pre-recession peak of 1953 and

is $34 bihion above

attach to
of living

Consequently, the moneauthorities should assist the

of

is thoroughly competent to give us

at

people
the cost

in

substantial

have prevailed in the past.

Product

the

has for 15 years been very closely
related
(though not caused by)

of

tional

We know that Federal expendi¬
tures for defense and other pur¬

their profits fell so very substan¬

tially less that for

present

$29.4 billion outlay on new plant
and equipment in 1955.
We also
open 1956 with an intense rate of

companies for all

would

the

at

of

index.

when
out

time, the third quarter of 1955, the
is producing Gross Na¬

may,

profits

Now

function

American

tary

which

economy

for defense goods and the reduc¬
tion
in inventories of' steel.
In

the

recover

Nevertheless, it is

the

stability

Our central bank
reserves
are
substantially above
the legal minimum and our commercial banking reserves are at
least substantially above levels to

the end of 1954 had permitted the
as

of

banking system not

The

recovery

lost

brunt of the reduced expenditures

a

unusual
economy

for

the

namely,

—

This time

quired

launched

in

icuf'-ibW5, and

of $1.4 bil¬

nomic growth and expansion.

materials.

certainly

downward

duration

a

money

forces

raw

re-

on a period
and will need more

expansion

panding

of

the direction of recovery and eco¬

was

of

greater

This

reserves.

came

years

steps, the
made "to head" in

economy

is embarking

economy

central objective of the monetary

six

these

of

prices

riods

S.

billion.

$0.1

a

material

raw

jerks, incrises, and such severe economic, business and financial collapse as to precipitate hard times
upon the nation for several pe-

re¬

put at

were

the peak

from

in

in

wholesale prices is desirable to furnish the signal that the

tense

and member bank borrowings de¬

clined

restrain price inflation of
serious degree, though some

and

economic

the

system

happened

with it

by

U.

securities.

markets

money

monetary

Federal
Gov¬
Quickly the

provided
purchase of

was

Reserve
ernment

However,

banking

ways

caused by
of

to

advance

small price

a

continued

for

pay

growth.

the Fed¬

amount

be.

Treasury in its defense against in-

ate that it should be

requirements

reserve

another

should

that they should

me

flation.

runs

and

objectives
to

1956, though I certainly believe it
be so extraordinarily moder-

comes

was

those

seems

any

wul

the

eral Reserve Banks

be

with

money

danger to the boom

consumer

steel

vance.

Reserve

at

It

price advance in the early part of

Roughly, one-half
enlargement of member
reserves"

what

the

the

to

fact, within five weeks the policy
reversed and by the amount

"free

accurately state their objectives,
Such a request should naturally
be accompanied bv a statement ofr

In this period of the boom
is usually some price adI should expect some such

there

was

this

It is desirable, however, that the
Federal Reserve authorities more

supply.

of $2.5 billion.
bank

come

restrictive

monetary authorities to recognize
the extremely great importance

to

of

of

consequence

A More Accurate Statement of
Federal Reserve Objectives Need

a

eco-

out of

run

a

re¬

monetary policies,

investment

Banks, there was quickly a rever¬
sal of this tight money policy. In

for

even

in

forward

to

oc-

inven-

materials—relative

May,
1953 to have
brought about a total of $1.4 bil¬
lion of borrowings by all member
at

as

reduce cost, enlarge out-

can

measurable,

appropriate

tory liquidations and did not

forms of inventions

new

on

is

as

and

their

and

and

occur,

auctions

sources—human, factory, and raw

by

banks

innovations

tend in fact

we

suffi¬

credit

Bank

Reserve

drive

and injury to output
employment. Such injury as

curred because of the defense

put or improve the quality of the
product. As this drive to innovate
and to invest gains in intensity,

confronting the

from the final estimated figure of

those companies, namely the steel

companies,

that

be

without

incomes

diminution

sus¬

depression

oper-

ourselves

business

Thursday, December 22,1955

.

did

the standard

based

monetary authorities — to the fact
that after having tightened Fed¬

ciently

typical

their

applicable to the situa¬

immediately

find

we

businessmen

effect

net

than

of 1954 suffered

gave

Bill,"

marvelous consequence, and it
quickly helped minimize by more

fact these

and

tion

so

Some industries are
the very limit of

.

and

very

example for all
earlier students of business cycles,
One such student, Professor J. A.
Schumpeter of Harvard, gave us
perhaps the classic model of economic booms in pointing out that

because this situation of

—

1953 is

are

nomic boom of the very type that
was

profit

should

at

Thus

1954.

attention

we

try.

not diminished

resources

equipment in

called

a

billion rate

tools

The

every

inventories,

of

Reform

recession.

1953-1954

accompanied by

$2

with

that

that

capacity, notably the steel indus-

that "money
pockets" of

the

here is

Finally,

actually to maintain a
rising trend of consumer dispos¬

fense expenditures in
a

and

oc¬

curred, we saw business adjust¬
ing its inventories downward by
an

the

ating

all, industry actually enlarged
total expenditures for plant

its

was

the

truce in Korea.

in

taxes were lowered by an amount
generally placed at between $7.5

able

*

allowed

was

of

a year,

to

pected.

it does in the pockets of the
What

meant

at

1953.

rerimposed

cf the

outbreak

and

Dec.

That

made the

in

economy

in

been

position

strong

a

has

holes

expen¬

ditures.
Why?
full employment
The decline in the total Gross
and full output, that defense ef¬
National
Product
amounted
to
fort gave us a very moderate de¬
only $12 billion instead of I the
gree of inflation and a very large
theoretically-to~be-expected de¬
expansion of production facilities.
cline of $52 billion.
The inflation was measured by a
Clearly on the grounds of the¬
rise of, all told, 14% in the cost
of living, 16% in wholesale prices ory of the multiplier, the economy
was
expected to be heading to¬
and prices rose substantially more
ward a 12% or 15% recession in
for agricultural products and for
output and yet the maximum de¬
raw materials.
cline in 1954 was only 3.25% in
But ever since the end of 1945,
total

enjoying

omy

probably' true

as

is

investment

business

and

is

helpful

rise

being in a state of full
of our labor force,
though some further gains in total
employment perhaps can be ex-

heads of American families.

spending (for

in the rate of total

defense

economic

is

know

also

close

largely
that in

very

and cash

development of the past five years

We

corporate treasurers, just as sure¬

ing system.
A very

the

burns

Stresses stabilizing value of our liquid bank¬

supply.

moderate

very

It

long-run economic aspects: (1) inventory liquidation; (2)
substantial decrease in capital outlays, and (3) failure of the
money

their

employment

was

sustained earn¬
ings so
1954 corporate
earnings were on the whole well
maintained despite the recession.

matters which could injure

as

tinue

slightly less than $2 billion

tax

Administration

economic developments, Dean

After reviewing recent

;

Corporation

Steel

practically no fall at all.
In fact, if the benefit of acceler¬
ated annual taxation is brought
reckoning, the recession
of 1954, despite a 16% decline in
output, caused no drain at all on
the
earnings plus the cash re¬
tained as a consequence of the in¬
crease
in depreciation charges.
For
industry
generally,
the
abandonment of the excess profits

UPGREN*

Ames Tuck School of Business
Dartmouth College

Dean,

S.

U.

into

Heading?

Where Is the Economy
By ARTHUR R.

there

.

to

excessive

.Volume

Number

182

5492

.

The Commercial and Financial Chronicle

..

(2751)
legislation of 1954 had surpassed
all

expectations and

restraint

ahead.. Nevertheless,
in

those who
field give
us

this

that at least 1,200,000
houses will be started in lu56 and
assurance

San Francisco Bonds
Bank

expenditures

here

should

closely equal total dollar activity
A

word

should

now

attain

uct

>

The

bonds

are

be

added

Gross National Prod¬

a

of

$500

billion sometime

tween

1962

and

being the
Eisenhower

be¬

1965, the latter
estimate of President
and

the

Joint

nomic Committee and

Eco¬

the former

being
the
estimate
for
achievement of the goal by Presi¬
dent Harlow H. Curtice of Gen¬
year

tional

scaled to

yield from 1.50% to

ican

2.25'^accord¬

•

.

Ripley & Co., Incorporated; Phelps, Fenn & Co.; Amer¬

Trust

Company (San Francisco); Merrill Lynch, Pierce,
& Beane; Weeden & Co.; Seattle-First National Bank; F.
S. Moseley & Co.; R. W. Pressprich &
Co.; Heller, Bruce & Co.;
Fenner

Wm. R.

Staats & Co.; J. Barth &

partner¬

ship will be formed with offices
at

25

Broad

Street, New York
of Jan. 3." The new firm

as

will be members of the New York
Stock Exchange. Partners will be
B.

offering group include: The First Na¬

City Bank of New York; Blvth & Co., Inc.; Lehman Brothers;

Harriman

B. W. Pizzini & Co., a

City,

ing to maturity.
Other members of the

with respect to the longer run. We
now have many estimates that we
can

America

clusive.

in 1955.
•

of

H. C.

NYSE Member Firm

N. T. & S. A. and associates are
offering
$1.3,250,000 City and County of San Francisco, Calif., 6%, 2%%
and 2% various purpose
bonds, due Jan. 1, 1957 to 1972, in¬

with slightly higher average costs
total

B. W. Pizzini to Be

Group Offers

in

wnen

har dly a year we passed goals set
lor a year no less than 10 years

specialize

Bank of America

modest

some

needed

was

Winthrop Pizzini, W.

Halsey,

Walter

Benjamin

E.

V.

and

the

Ex¬

change member.

KINGSBURG, Calif.—David H.

Louis;

Herbert

Co.;

Trust

Company

bers

of

Robert

Georgia;

Shearson,

H.

Wigh

&

T.

York

Jan.

on

1

Stock

will

Edmundson to partner¬

Dugenf Now in Trading
Dept. of John G. Logg

Co.,

is

now

associated

could

injure

these

1515

Draper Street.

Exchange. Mr. Dugent, who

has been with the firm
years,

formerly acted

for many

as

Cashier.

pros¬

pects?
The three most
of

economic

pressions

common

recessions

inventory

are

causes

de¬

and

liquida¬

tion, substantial decrease in busi¬
plant expenditures, and the
or
"complete collapse of
We have had

ness

failure

Use„

the money supply."
considerable

recent

experience

this
key

with inventory
recessions that

liquidation and the
they produce are
modest in size and of short

very

duration.
It

to unlock

live with them.

can

now

'taking
for

We

happens that industry is
substantial responsibility

maintained

tures.

capital

That minimizes

larger

expendi¬

the second

of deeper recessions. In fact,
rising productivity and ris¬

cause

with

profits

ing wages, with known and in-use
improvements awaiting applica¬
tion to all other productive facil¬
ities

of

with

industry

any

many

a very rapid rate of
growth and a mini¬
mum growth in the population at
the working ages, there will be
every
incentive,
cost-wise
and

plants, with
population

market-wise, to continue recent
high rates of business plant ex¬
pansion.
In brief they pay for
themselves

did the diesel loco¬

as

motive.
This leaves
third

is

the

complete
than

less

collapse

six

1873

these years

there

sustained
nomic

It

the

of

in

times

from

years

the

recessions.

This had occurred

supply.

money
no

to cope with

us

of deep

cause

the

60

and

1933

to

in

three long
of deep eco¬
We now have

were

periods

depression.

//

the

good fortune to possess
a
liquid
banking
system
and
a
authority which
understands its task of providing

?

central monetary

adequate

money

supplies

as

not understand its task in

1929

in

and

man

are

1933.

The

economic

deep

past

made

-

i-

it did

1921, in

causes

',0

of

depressions

and

y//

therefore

through the adoption of wise poli¬
cies

that,

economy,

tors

corrected.

be

can

than

amortized

the

as

Further

the structure of the
consisting of such fac¬
mortgage,

compensation, or
old age pensions, the liquid bank¬
ing system, the automatic built-in
flexibility
of
the
Federal
tax
unemployment

structure and many other features

give

better
we

able

have

methods of communication.

resist

to

implements which activate

shocks

that

analysis of the policies used so
greatly to minimize the recession
of
1949 and 1954 very strongly
sustain these views that we can
control our economic future for
great gains in the general welfare!

typed letter leaving

CHARLOTTE, N. C.—Grady G.

tive
He

years

facts and figures.

office. Or possibly with

report which reaches
on
i

opportunity,

i!

i

■

.

or

rectify

or

timely McBee operating

your

desk in time to capitalize

a

fault.

Income

from .Sales

of

Profit

after

Income $ 3,132,697*

on

Provision for Federal Taxes

on

1,565,360

Profit

after
for

methods
...

are

finding

Taxes

are

*

Note: Includes

,

Stock.

$1.10

has

He

with

prior

been

an

award in litigation.

(Subject to year-end adjustments and audit)

General

to

Execu¬

& Treasurer.
Motors

entering the

vestment business in 1942.




10

in¬

ROYAL M9BEE
2 Park

$

3191167
$ .17

non-recurring income of $378,644,

resulting from

unlocking larger profits

helping to curtail costs.

335,653

on

$ 1,567,337

Earned per Share—Common

Royal McBee machines and

654,820

Depreciation and
Federal

Income

both—American businessmen

$

In¬

come

Provision

.

$17,362,971

Depreciation but

before Federal Taxes

Net

1954

Products,

Services, etc.
Net

1955

$22,782,404

Three Months Ended October 31st

Treasurer

Vice-President
was

the list of

RESULTS

been elected Presi¬
of Southern
Company,
Johnston

has

Investment

Building.

your

the custom-designed and

that

Of Southern tnv.
and

your

on

How? Perhaps with the excellence of every "Royal"

Either

Grady Thomas Pres.

dent

high

known before. Close

ever

Thomas,

Royal McBee machines,

methods and systems should be

economic structure far

us an

SUMMARY OF

Success in management today means improved

CORPORATION

Avenue, New York 16, N. Y,

with

Trading Department of John
C.
Legg & Company, 22 Light
Street, members of the New York

eral Motors.

What

Ex¬

admit

ship in the firm.

Stock

of

Co.; Kean, Taylor & Co.

the New

change,

the

Thiesen has become affiliated with

&

C. Wainwright &
Co., 120
Broadway, New York City, mem¬

Bugent

(Special to The Financial Chronicle)

Co.; Paine, Webber, Jackson &

Reynolds

To Admit Edmundsou
H.

BALTIMORE, Md.—Charles A.

With Herbert H. Wigh

Curtis; Clark, Dodge & Co.; The Boatmen's National Bank of St.
Hammill &

Wainwrighf Go.1

Gurden

Bradley,

Bampton,

II

/

r

f

,

42

The Commercial arid Financial Chronicle

(2752)

ure

The Economic Weather

of

enjoy the

to the one and

up

determine

will

other

economic

our

the

pattern

future

to

say

and one-half

credit

at least three

times.

Putting it another way, the

ratio

of

credit

consumer

.

.

o

«

,

|

*

Thursday, December 22,1955

.

Finally

the

number

of

family

formations should increase for the

dis¬

to

declining trend in the number of

nothing

May Face Ahead

I5y W. G. PALL*

Exchange

President, The Los Angeles Stock

Coast

West

Prominent

ouilotk, finds

economic

broker,

investment
as a

basis for optimism the potential

level

base, this

will

term

I

to

I

as

would add

attempted

to

de¬

velop charts, it seemed each called
another

for

would

and is not out of proportion to current
high level of production. Traces changes in income distribution
which indicate more potential consumer purchasing. Stresses

not

.

of consumers' surplus

only

find

could

and

for

so

confuse

fear

I

you

but

unable to

myself

ex¬

plain them, I decided to risk try¬
ing your patience by briefing and
presenting statistics verbally.

"a real selling job."

Economists
term

devised

have

national

"gross

were

ex¬

of debt

1940 ratio

discretionary spending

stallment

if short-

means

credit

power,

it

$20 billion to in¬

some

purchasing power.

Forecast

of

Level

Continued

a

Production

of

the

product"

the continuity of the growth

research." Not

being

favorable

high level of produc¬
tion. So while present debt levels
icant

high it seems signif¬

the

that

total

of

ratio

debt

total

declined
rapidly in comparison to 1930. As
of that date, 1930, our public and
private debt represented a total
more
than
double a year's na¬
tional production. While the cur¬
to

has

production

have

I
e-

r

searched

m,y

subject by
weighing and
combining the
studies

W.

G.

give

as

excuse

of

source

porting
shall

as

nor

an

explain

to

the

of

some

both.

or

background

apology

an

merely

—

one

this

you

neither

X

tinue

either

are

the

data

sup¬

of the conclusions I

some

venture

which

in

those

or

although they have been
made by others.
concur

In

first

the

timist.

I

place I

bullish

am

in

I think

where

period

a

is

momentum

op¬

the United

on

States of America.

an

am

the

are

we

economic

favorable and

so

so

strong nothing but minor periods
consolidation

of

of

areas

its

and

dislocation

for

progress

when

time
to
this basic
I reiterated it

interviewed by the

Honolulu
hower's

after

expressed

the

did

man

not

that while the

table

illness
effect

that

depend

our

on

any

party

and

President's regret¬

would

have

the stock

on

ish

saw

no

either

on

the

to turn bear¬

reason
our

economic future

market.

still

Dynamic

Decade

To estimate the future we must

of alert

ade¬

and

This means—
dislike and de¬

as

it

plore

we

may

expendi¬

that Federal

—

tures for defense will

continue at

not less than the rate of some

billion

A

year.

per

$41

repre¬

sum

that

agree
been

1955

mated

production.

Other

Federal and local government ex¬

will

penditures

total

look ahead, if all phases

So,

as we

of

government
national

our

to

existing

consumption

production

almost

20%

matter

of

be

fact

of

a

20%

of

our

national production.

Then,
business
and
industry
good customers.
Expansion

of

their

to

as

progress
use

to

predictions

for

the

Eisenhower,

in

his

future.

economic

report

to

Congress

Jan. 20, 1955 must have used
progress

as

his

yardstick

on

past

when

to

such

inventories

and

•

In

expenditures amounted

almost

our

$47

billion

national

lion

13%

or

product.

almost

or

In

of

1955

and
of

S.

buying

billion,

dollars

power."

or

of

And,

in

same

its

Oc¬

total

such

billion

dicate

13%

in

pointed to

a

goal of $535 billion

they

Dec. 7,

by

Mr.

Paul

Club, Los

1955.




before

Angeles,

the

Cal.,

of

10

years

$218.8

level of

still

which

mortgages

chase

as

expected

are

to

as

the

typical
mally no

greatest

opportunity.

well

be

that

in

find

and
—

In

—

your

fact

some

I

it

ways

and

major

a

the

on

ouV

to

since

monthly

home

67%

are

in

were

1940

five

the

families

nor¬

are

debt

home

increase
is

are

in
It

translate

this

years

increasing

ances

credit

for

extended

But

it

will

be

of the
homes

Changes

in

These
other

power

taxes
In

and

1940

power

than

gross

reflect

trends

among

things the significant change

Disposable

in

income

1955

dollars

1940

as

1940.

terms

of

since

increased

has

follows:

increased

Third

income

increased

purchase

level

of

$8

discretion¬

is

currently

six

times

as

income

less

in

in

was

$18.6
the

billion

—

consumer

billion. Today it probably
the

$32 billion

consumer

i

old

well
pro¬

local

of

in

1956

industrial

closely

power

one

increase

has

should

area

dollars.
has

jv
increased

dollars.

117%

u

^fifth has increased 143%

another

approach

rising trend of recent
years. Consumer demand should
similarly be not only sustained
but

increased

advertising

the

to

selling

and

extent

praising the potential purchasing

reflecting increasing fami¬

lies and incomes is to consider the

converting disposable
income and savings into greater
purchasing commitments.
Encouraging

of

Investment

of

Surplus Income
I

can

assure

industry

expects to
investment
of
surplus income

and

the
portion of

some

and

the securities

you

intends

encourage

indus¬
is not only that
of profit from the conduct of our
savings

in

American

try. Our

purpose

business

but

flow

the

insure

to

essential

of

capital to industry.
The rapidly expanding economy
I have discussed plus the chang¬
ing income status of the indi¬
vidual makes it imperative that
new
sources
of
capital — new
investors—be
think that

found.

like

We

in the process

to

will
not
only
provide the required
capital but in widening the base
of industry ownership just as in
widening
the
base
of
home
ownership, we will be creating a
wider understanding of and de¬
to

protect

and

capital

private

we

economy.

Russia

no

adverse

satellites

its

and

election

will

kets

factors

a

I have
periods of
political
factors

as

be

influence.

their

exert

be
Presi¬

can

and

year

there will

doubt

I

am

securities mar¬
by political

sure

affected

be

their

and

our

preserve

of possible

aware

am

in

fluctuations

have at least a sym¬
pathetic effect on other segments
of

may

our

and

But,

economy.

influence
not

will

be

I believe
temporary

alarming.

I

imagine each generation feels
it has lived in a period in which
the

greatest progress and

has

been

today

recorded.

think

1950

vention
ment

But

we

that

I

at

this

has

known.

and

point in
on

1941

(millions)

to

of in¬
develop¬

ever

back

Continued

39.3

1900

period

industrial

look

many

privileged

were

world
I

change

know

between

greatest

and

the
as

forward

following:

Families

suc¬

are

in

cessful

enjoy the
ap¬

con¬

tinue their

arid

to

our

maintain

therefore

present levels at least if not

such

increased 90%

ap¬

proximating current levels.
Employment and payrolls in

reasonably

more

credit

total

a

investment

uncertainty

105% in dollars.

power

of

has

93% in .dollars.

Still

vide

as

should

industries

new

group

Lowest fifth has increased 159%
vs

of

expansion

income

dollars.

fifth

Fourth
vs

defense

influx
as

turn

fifth

in

72%

larger

dential

follows:

Third
vs

expenditures
in
our
industries. How¬
ever,
their equipment and in¬
ventory expenditures will con¬
tinue.
These
coupled
with the
expansion

has

the

plant

major

group

purchasing

we

mean

may

no

income

105%.

Second

This

areas.

anticipate

can

has

72%.

real

50%

lished

reducing
or
moving
capacity from its estab¬

group

Highest fifth has increased 69%

vs

present

unpredictable
and
disturbing factors. 1956 is

economist-estimates

34%

template

are

fifth

of

dispersal program
industry did not con¬

factors.

income

our
conr-

customer

has

group

50%.
fifth

good

a

in

should

any

defense

I

fifth

Second

vs

that

ago
for

34%.

increased

as

be

to

espe¬

Secretary of the Air Force
Quarles
virtually
assured
us
when he spoke here two weeks

sire

Highest fifth income group has

In

tinue

be¬

to

is

here

warranted

is

sell

ours.

less basic living costs.
discretionary spending

twice

of $8.3

is

ex¬

Distribution

Income

income distribution since

in

bal¬

great in 1956. Discretionary spend¬

ing

con¬

things as
have de¬
clined despite increased purchas¬
ing power and an increasingly
higher overall standard of living.

appliances,

1940

power

public
In fact

of

expenditures for such
amusements

debt—the

the

consumer

spending

into

spectator

renting

unpaid

home

the

trend

like

I

outlook

an

Government

area.

who

those

services.

or

as

outlook

future

to

such

cially

a

to

the last few years while

average

increased

charge accounts — is now some¬
where around $32 billion. This is
times

marked
wizard

penditures for all items having to
do
with family living have in¬
creased
considerably more than

reflection

consumer

automobiles,

levels

a

the remainder reduced.

on

Short-term

of

sees

no

expenditures.

fifth

merely

year

children

93%.

entirely free of debt

were

each

group.

goods

the immediate

seem

long-term

lieve

of American

size

family

Lowest

approximately half
non-farm owner-occupied
1954

in

more

four

takes

increased

home ownership. And further¬

and

the

decrease

consumer

more,

in

there,

age

year

and

in

of the decided trend from
to

61%

and

for

families.

payments

loans
they

than

today

It would

today have reversed the

which

trend

of age group in

nine

to

three

Two,

there are
family. There
children in the
and

years

population

our

a*e

per

more

five

under

the

typical

if

more

the

so

exceeds

meas¬

children

at an

lammes

more

children

actually less than prevailing rents

colleagues

the nation

having

Fourth

the extent to which you and your
across

age.

not

estimated
in

area

do

threat

home

five times the 1940 level and it is

salesmen will

you

payment

on

ary

sure

unrealistic

not

increased

serious

amortized

billion.

challenge

is

amortized home loan is the equiv¬
alent of rent. To a great extent

gross

the

It

recession

monthly

potential

comes

marrying

are

eariitr

debt

consumer

in the absence of

economic

1956

am

But,

this

no

economy

the

I

short-term

as

this debt,
is lower in rela¬
savings than
years. Moreover, 71%

homes.

four

as

farm

seems,

consider

some

you

billion

and

accumulated

to

represent

greatest

well

as

it

as

$122.4

at

home

credit.

consumer

large

debt. It is pres¬

consumer

includes

and

now

Debt

of the first things

estimated

ently

the

decline from 1955 fig¬

folks

young

sumer

Consumer

one

sure

1954

of

which

may
*An address
Sales E""-—■Mve

the

investment of

all

some

And

hope

Report

in

Je

Re¬

Basis for Optimism

mittee

Economic

World

and

product.

your

the

plants

new

preceding 46
years.
While present estimates of
business expenditures in 1956 in¬

tober, 1954, study, the Joint Com¬
on

In

repre¬

(1946-55), United States business
$232.6
billion in
new
plant and equipment compared to

more,

the

half

invested

exceed

$500

esti¬

our

The Nov. 25 iss

News

port" states that

"our country can within a decade
increase its production from the
current annual level of about $360

expressed in

of

about

equipment.

"U.

ures,

to

15%

national product.

gross

—looking ahead to 1965—he said

billion

Level

am

debt

growth necessitate plant con¬
struction, new and more equip¬

increased

1940

all wonder about is the present

and

a

President

I
we

to

expenditures for

eco¬

The

are

ment,

1929,

(prewar) and the present.

since 1940 represents loans to pur¬

sents

the

periods.

significant

prewar

customers

as

of

have

levels dur¬

"trying to spend our way into
prosperity." Well, let's look at
some comparisons
between three

the increase in

instead

'50s

optimistic economists

project

1930.

or

of

Governments

25%

the

fact

forecasters—may be
classify the goals I
outlined as "trying to lift
to

in

for

instance

pattern

a

in

176%

1929

eral

each

In

the

inclined

tion

must

at all

of

persent trend
increasing public financ-'
ing of more highways, schools,
hospitals,
sanitation
and
other
projects to meet the needs of our
growing
population
may
ulti¬
mately establish local and Fed¬
toward

far

so

of

many

you—and especially those who are
old
enough to recall the "two
chickens in every pot" predictions

for

As

the

we

ing the '50s has been such
establish

to

more

this point I expect

At

govern¬

customer

a

of production.

1955,

progress

which

we

if

held

are

percentages,

should

ment

9%.

some

of

dynamic.

nomic

as

1955

ourselves by our own boot straps"

mated

Certainly

of

have

slightly more than 10%
expenditures for our total esti¬

namic

close

that

over

"dynamic decade's" growth
pattern is to be maintained.

senting

they should approximate $56 bil¬

Decade."

billion

of

look at the past. Some economist
once labeled the 1950s as the "Dy¬
the

pat¬

dynamic

the

War"

expanding research facilities.

1950s—The

near

the

of

$16

con¬

policy

a

much

1954

The

is

unquestionably

quate preparedness.

ad¬

an

market,

thought it would be temporary

and I

or

Eisen¬

occasion

belief

political

or

verse

that

On

of

press

President

illness.

economy

I

impede

some

belief many times.

one

will'

I have expressed

come.

I

temporary

"Cold

will

We

on.

Paul

conclusions of

I

The

talism.

and

those who

tern

andt'home

families

ownership the effect on potential
purchasing will be pro¬

consumer

portionately important.

'Fifties, the
Now
let
me
translate
these
First, government.
Since Ge¬ gross national product for 1956
into more specific con¬
could be $403 billion. Since gov¬ figures
neva, I think we can safely assume
that
the communist attitude
of ernment and industry consump¬ sumer potentials. I referred to the
home ownership trend. It reflects
smiling good fellowship was just tion in 1956 will probably closely
a
healthy and desirable trend to
a
surprising and pleasant inter¬ approximate
1955
figures
this
lude marking no real change in means
that
personal
or
public family life.-Family formations—
communism's antagonism to capi¬ consumption must increase some marriage — are increasing. Our

or

analyst

an

potential of each.

Let's look at the

an

economist

gross

be

continued

appear

old

years

years.

the

might

21

rising for the nexL 10 to
If these rising numbers
reaching
the
family
formation
age
continue, the present trend
of early marriage, two or more
15

Any optimistic appraisal of our
economy obviously contemplates a

national production in 1965. which simply means the total
Now, as salesmen, you naturally volume
of
plication of research. The fabu¬
goods
and
services
rent
debt
total
is
three
times
lous Wilson M'zner is reputed to say to yourself, "there go the slide produced
in the United States
greater than in 1930, it represents
have said "when you
steal one rule boys again—increasing pro¬ during a given period as measured
duction.
But, who will buy it? in dollars. In 1954 this volume of only 160% of a year's production
fellow's writ¬
as compared to the 1930 figure of
.Where and how can we sell it"? goods and services was $360.5 bil¬
ing — thats
210%. Of even greater significance
Well, there are obviously thrre lion. For 1955 recent estimates
plagiarism but
perhaps is the fact that today
areas in which to sell.
One: Gov¬
when you
place the figure at $387 billion,
ernment, Federal, State and local. an increase of $26.5 billion or 7% private debt (corporate and in¬
steal from
Two:
Business
and
industry. more than 1954. If we maintain dividual) represents only 91% of
many — that s
a
year's production as compared
Three:
The
consumer
public.
My assignment implies the ap¬

becoming

persons

children

High

visually.

them

present

31%

to the

panded
to

to

However,

spending

consumer

the

point I must use some
justify my opinions.
considered
the preparation of

charts

as a

our

this

At

than in prewar years,

income, but points out this is

by the increasing personal

statistics

population. Compares statistical data for the years 1929 and
1949 with those of the present, and holds present level of
consumer
debt in relation to accumulated savings is lower

opportunity for encouraging investment

leached its lowest point last year.
The trend is now reversed and

steadily growing population.

of li/ing of our steadily growing

ity and the rising standard

power
has
in 1940 to
about 22% in 1955. Using the 1940

consumption
capacity
and
standard of living of

provided by the increasing personal consuming capac¬

marke's

from

rising

the

viewing

in

dropped

vided

We

of making my observa¬
tonight either reasonably
warranted or woefully wrong.
I
refer to the potential markets pro¬

cretionary

tions

then

the

dy-

page

SO

1956

(millions)
56

Income

over

$3,000

5.7 (14V2%)

37 5 (67%)

Income

over

$5,000

1.5 (4%)

19.6

(35%)

Volume

182

Number

5492

.

.

The Commercial and Financial Chronicle

.

from what
•

By RALPH T. REED*

annual

tourist

interesting
astonishing

Estimating American tourists have spent $1 billion in foreign
countries this year, Mr. Reed hails this as a "trump card" in
overseas

Such

.

President, American Express Company

Forecasts tourists

they were in 1948.
We've come quite a distance in
the last eight years.
not

only

rate

size.

present

expenditures
of

resent

spend¬

be

voluntary

and

important,

that

noted

their

growth

More

should

for

are

they

consumer

ex¬

ing will double in next decade, while U. S. earnings from

penditures in

foreign countries will show

value given for value. I think

a

and will expand

vast increase

the

it

rep¬

market—

open

tures

play

all

free

Holds U. S. tourist expendi¬
major role in reducing need for U. S. foreign
areas.

functioning of economic de¬
supply through tourism

that

agree

this

kind

of

all business and social

urges

sence

prosperity carries with it dramatic
effects for the travel industry, as

sea

the

to

of

number

I want to say a few

the

things about

have

offered

tourist, and the
very considerable influence he is

nancial

having and

project

American

have

can

the fu-

on

the

Nile

ture of the

to

entire

ment.

world.

free

Partic¬

well

like

to

the

in

ers

are

hard

m

tries

now

and

at

work

our

called

"neutralist"

this

and

also,

tive

offers

And,
the ef¬
Kaipn T. Reed

their

At the

for

drive

global

prosperity in which we are tak¬
ing part, for the greater well
being of

in every country.

men

These
received

a

which

themes

are

have

good deal of individual

attention in the past.
time

I

cannot

been

At the same
that they have

see

accepted as
single, large, many-sided sub¬
ject—oi immediate importance to
ever

generally

a

all

nations

free

the

in

present

profound ferment of ideas and
loyalties going on all over the
think U.

tourism has

world.

I

this

I think it consti¬
field of development with

role,

tutes

a

lot

S.

and

an
astonishing potential, as yet
unrealized, towards improving the
material well-being of all nations
and in fortifying their independ¬
ence.

One

conditions

basic

the

of

present

of

shrinking

of

era

distances is that the economic sta¬

bility and self-reliance of each
country of the Free World has
become specifically important to
every one of us here in the United
The

States.

that

is

fact

sustained and widespread

today

poverty,

underdeveloped
nation will of
necessity
eventually
harm
our
own
country in one way or an¬
coupled

with

other.

an

in

economy,

any

We

need

sound

strong,

community of
nations—and the problem is how
to improve the condition of those

neighbors

in

the

countries who

are

not

The

which
East

economic

and

know

we

continue to seek for

Western

these

that
us

for
At

and

the

honorable
little doubt

seems

rivalries

will

with

be

long time to come.

a

the

time

same

the

com¬

petition is
shifting to new
grounds. The Russian leaders are
now
evidently devoting priority
the economic front—

.attention to
to

attempt to win over to their
all
those
underdeveloped

an

side

who

nations

have

only

recently

begun to realize that opportunities
exist

at.

last

off

throw

to

their

We

have

would

appear

crucial

most

Russians

are

East

Asia

and

to be the first and

areas

on

tremendous

a

more.

stake

in

countries, and,

smaller

and

smaller, our stake
proportionally grow.
We

will

want mutual trade with
want

their

tion

and

counsel, and

we

coopera¬

assistance

in
solving
international prob¬

vital

present
lems.

them,

We want to keep the minds

of their people free.
I

certainly would
discuss

to

which

the

not

presume

over-all

the

strategy

should

West

this challenge.

answer

take

to

I do, how¬

suggest that U. S. tourism,
properly encouraged, can have

ever,

a

profound effect in helping build

these countries towards
and

true

To

prosperity

independence.
this

document

thesis

pro¬

perly, I have to follow a rather
round-about route, covering the
present size and
importance of
our
tourist expenditures, a word
or
two
regarding
the
future
potential,
and
a
few concrete
ways
and
means
whereby this
potential can be still further
developed.
I also want to touch
on
some of
the broader implica¬
tions

by

of

travel

citizens.

our

bear with

the

around

I hope

world

will

you

which

concentrating.

*An

address

New

Y'.rk

City,

by

Mr.

Chamber

of

the

Billion-Dollar

A

Tourist




through

Expenditure
In

1955,

tourist
lion

will

spend

about

U.
$1

S.

bil¬

in

more

foreign
countries
and
than a quarter of a billion

more

on

carriers. These
enough to pay

foreign

expenditures
for

rather

all

the

are

than

more

merchandise

these countries.
lent to about

They

tenth

of

sent

a

to

we

equiva¬

are

of the

12%

revenue

by overseas nations from

imports

sent

States.

And

the

into

they're

United

current

year,

will

abroad

In

fact, during

our

have

contributed

roughly $100 dollars to
which

dollars
sent

over

of

the

every

$36

Government

in all its assistance pro¬

It would appear from

estimates

1956

more

travelers

that

figures

startling

a

will

cur¬

comparison
show

even

percentages

in

favor of the tourist dollar.

a

large advance made in

few

years.

U.

S.

foreign

a

very

travel

1939.

one-third

these

And

With

of

all

families

the

condition

imply either that
aid is not a far-

eral

on

a

of

sides.

The

in

proper

gen¬

is

U. S. foreign
sighted and admirable long-range
necessity. It is — and apparently

American

will

to come.
However, I do believe that U. S.
some

years

tourist
a

expenditures abroad have
major role to play in reducing

them.

well

source

I wish I could discuss

concrete

many

automation, and

tourism
I

am

today. I can tell you that
optimistic about its

very

future
with

development. We are faced
quite a number of unique

factors

which

be

to

appear

of

profound importance to the com¬
ing development of international
travel.
First

rapid transportation.
When American jet passenger
planes are put into service four
—

hence, U. S. travel industry
will inevitably begin a new epoch
in its development.
In these jet
transports, it will take about six
and one-half hours to fly from

years

New York to

Paris,

opposed to
today.
Seattle to Tokyo will take nine
and one-half hours, compared to
17 now.
And a
Chicago tourist
will
be
able to
get to London
not in 13 hours,
but in a little
an

as

121/2

of

average

hours

U. S. tourism.

At the

rier

time the other

same

industries

in

are

the

car¬

process

where

to

vacations

rapidly
go—for

getting more
they want to

business—and

for

and

the limit of future development

this

is

area

Under

in

conditions

such

the

"weekend in Europe" can become
an

active reality for many

tourists,
other
resort
and
before restricted to

many

areas,

a'month

spend, v/ill

two

M]ost

And

vacations

and

the

he

now

With
the

these

physical changes in

speed and capacity of carrier

services, their cost will presum¬
ably go down somewhat,
per¬
mitting even greater numbers of
lower
abroad

who

citizens

income

have

I would be

barring

convulsive

assuming

the

couragement,

ist

proper

will

double

within

if

even

partially
mains

that

to

it

be

notice

given

than

is

also

our

Product

of

about

only
it

reached

$391

last
has

will

and

an

billion,

9%

over

an

an¬

in¬

what

it

year.

President

stated

his

reach

belief

billion
within
the
next
10
years,
and
many able economists make still
more
optimistic predictions. We
are
developing a giant consumer
appetite for goods and services—
and

we

are

is

the private

$500

simultaneously

de¬

veloping a unique industrial
plant to feed that appetite.

"Point

Personnel

of

advantage

the

has

vals
to

to

areas

an

vital

These

ment

that

travel
in

statistics.

1929

we

The fact is
spent

about

to

outweigh

areas

of

of

all

overseas

na¬

their

countries,

own

the

money

and

effort

involved.

the
interesting

We have learned that one of
most

traits

It should

seas

principal

asking themselves where im¬
provements can be made. I can
guarantee that such improvements
will
produce results which far

I

over¬

leaders

erence

disposable income available to
our
citizens and the possible ef¬
fect of this on international travel.

actual

the

wishing to improve their
dollar earnings to consider these
broad measures with specific ref¬

in

been reflected in our

are

tions

rise

perhaps have been added
then that this rise has not as yet

and

private businessmen and govern¬

foreign

earlier the steady

mentioned

rates

exchange

activity through which travel can
be encouraged. I would urge the

through

of

on

A Recommendation

ac¬

necessity.

restrictions

through special taxes, dis¬

tourists.

self-respect.

a

of
off¬

justed favorably to the incoming

spreading the beliefs of free
men—particularly their powerful
desire for peace and their mutual

still

encourage

the like must be eliminated or ad¬

of

encouragement

to

business.

criminatory

suggests something of the
vital role of the tourist as a means

is

categories

special
and

Government

also

The

festi¬

resorts,

country, can be developed

travel

planning and encouragement.

travel

tourists

sport areas, appropriate

attract

added

suggesting

economic

the

season

increased in volume and expanded
new

and

travelers

tively developed program, under
which these expenditures can be
to

handle

to

seasonal

Special

of

power

citizen's counter¬

5"

of unnecessary red

customs,

must be recruited and trained.

and eco¬
nomic assistance. Though Point 5,
the American
people can speed
the development of stable econ¬

term

in

needed

technical

of

program

inade¬

are

portant.

part to our Government's Point 4

National

Gross

now

of

Eisenhower

that

attention

attention

Our

has

rate

crease
was

draw

apparent conditions

careful

foresight.

5

It

developing economy which

deserve

nual

to

want

other

two

designation for the vast

wise

heretofore.
I

much

always

border crossing
formalities, health restrictions and
exchange controls is vitally im¬
tape

previous talks and articles I
have suggested the term "Point 5"
and

almost

tourism

for

Elimination

more

being paid

"Point 5" in Foreign Policy

suitable

in

industries

facilities

today.

a

pri¬
hotels, trans¬
consumer and
recrea¬
government and

quate, the market cannot be de¬
veloped.

re¬

In

as

the

financially fruitful through
resulting tourist revenues. If the

travel

far

of

groups

prove

And

international

to

tion

least

fact

by

concerned.

portation,

only

the

implemented

investment

vate

of

10.

tourists.

own

our

business

and

Increased

en¬

are

next

records

realized,

have

careful

the

such

of
best

are

countries

increase 50%

in the next five years, and at

the

organizations, developed by the

ests

world

number

in

governments, transportation inter¬

United States tourists traveling to
other countries

so

done

not

na¬

strong national and regional tour¬

willing to predict that,

any

conflict and

go

to

these

programs

interest

These

forth, it hardly
seems an exaggeration to say that
we are moving into a revolution¬
ary period tor U. S. travel abroad.
so

through vast and" ever-expanding
tourist expenditures.
Like the name "Point 4," this

which

time

much

for

United States designed to capture

omies for the free nations abroad

spends getting to these areas, he
will then spend in them.

important

promotional

vacationist.

week

remains

more

Taking these facts into consid¬
eration, along with many others
such
as
pension funds,
longer

be open to the

soon

three

and

two

or

done

tions, is the development of larger

this flood of tourist dollars. Point

hard to foresee.

a

field

been

travel.

vastly improving the speed and
capacity of their equipment. More
are

has

much

en¬

However, it might be
helpful to suggest briefly a few
general areas of activity in which
specific action can be taken.

of

people

to

This is

fascinating

and

already and much

mean longer vacation
periods, greater leisure and higher
skilled, better paid workers. All
of these, too, will be prospects for

will

six.

over

today the
which

take

can

to be done.

doubt that event¬

no

and

measures

nations

overseas

Very large
r—in which

there's
ually it will

a

flow of tourism.

courage

ever,

to

on

well-timed efforts to increase the

certainly do not wish to discuss
this subject in any detail. How¬

This, then, is the size of U. S.

tacked

as

I

Future Tourism

of the word, rather

business, transportation

of automation and atomic energy.
In
recent
months
we
have
all

lot about

order to
in the

further

fun, and relaxation.
Then, too, we seem to be enter¬
ing a new and dramatic era of
industrial
development—the age

a

in

program

social, cultural and
religious groups — collaborate on
carefully
planned
and

interna¬

wonderful

a

a

name

heard

aid

dollars, and perhaps, in
course, in helping to elimi¬

nate

tional travel is

his

government leaders of all nations
—as

and

more

that

5

sense

a

that

of knowledge,

for

be

coming

discover

to

more

reaches

spontaneously originated and selfsustaining trend, it is necessary

income

average

he

words,

Point

make

prosperity
during
coming
it would appear that travei

all

the

often

a
European
the year fol¬
habit. Hence,

or

when

other

In

represent

than

such

for

year

to

very

destination.

country.

our

more

the

This is not to

spent during 1955 on all its
non-military aid programs to

have

of

trip

season

way

next

cilities

income

over

or

group — just about double the
number of families in that class

records will continue to be broken

of

the

and

families

$5,000

A

client

who has

one

lowing. Travel is a
the problem of those who want
to encourage this market is, first
to convince the potential tourist
to travel and, second, to provide
him with necessary modern fa¬

,

ex¬

years,

considerably

our

nations.

moves

of

tries.

to

overseas

efforts,

itself

As

spontaneously
productive channels of
capital investment in basic indus¬
into

country will

double what

over

individual

revenue

quicker

to

the

expect

we

their

the

and

secured

revenue,

the traveler with

They

before the
Commerce, New

Reed

1

as

such

travel

Further, these figures represent

York

from'

S.

U.

the

to

while

me.

tour

over¬

potential

before.

the

paves

discretionary
before been

has

optimists.

million

replace the other. The bene¬
fitting nations develop far greater
self-sufficiency and initiative

a

the world continues to become

as

rent

Middle

very
can

be

can

the future of these

grams.

age-old poverty and despair.
The

men

going to have to do

secured

signs in¬

East-West

this

that

dicate

improved

an

along

powers

there

lines,

will

we

Russia

between

climate

between

While

West.

and

rivalries

well

so

build

doing

are

we

in good

now

of this problem is
immeasurably by the

increased

help

all

are

we

urgency

spiritual

time

traveled

1954, 14
belonged

these

assistance.

of

same

to

which

health, without harmfully drain¬
ing our own resources.
.

attrac¬

most

treme

and prosperous

if

our

with

areas

of

world in
productive
— and
have been
doing a lot for quite a few years.
Personally, I am convinced that
a

economic

other

countries

dreamt of except by the

another, and that it's a
healthy sign when the one

than

best

an

travel expert

every

West Indies this

is

consumer

As

the

knows,

of their trips.
Further, our current prosperity

of

available for

means

trip.

for the future is the

quency

spending,

due

expenditures
the

They are
the coun¬

wooing

of

abroad.

in

to

during

friends

of

essential

the Arab bloc.
In fact,
coming months they will
probably be showering all so-

America's

fects

a

develop¬

implications

and technical assistance.

job of comu n i eating
to

—

Egyptians.

tal

ideals

Aswan

at

material

as

ers

vi¬

the

Dam

Such aid, if accepted, will
powerful psychological, as

Burma

travel¬

our

Egyptians fi¬
building of

the

The Russian lead¬
visiting India and
Afghanistan — pre¬
sumably with offers of financial

say

something
about the role
of

the
for

which appears
country's future

the

have

ularly, I would

aid

and

will be going abroad and the fre¬

producing very unusual resulu?
in the development of a far wider

of the "travel habit" among
our citizens with leisure

of

most

who

travelers

base

to

this

prosperity for the next decade,
barring war or any unexpected
major economic upneaval.
Such

is far superior to any sort of aid,
however necessary, from one na¬

should cooperate

groups

that

proportionate drop can largely be
accounted for by the simple ab¬

mand and

well-timed efforts to increase flow of tourism.

on

belief

own

figures, we can predict with
moderate Certainty continuing

tion

aid, and

a

my

13

lar

we

can

rapidly in undeveloped

It's

On the basis of these and simi¬

expenditures have almost doubled

The New Role of Tourism Abroad

East-West rivalries.

(2753)

universal

of

haustible
,■

wants

to

the

and

tourist

see

new

in

his inex¬

He
places,

curiosity.

always
people,

cultures, and climates—only pro¬
vided there's good transportation

to get there and a decent bed at
eight-tenths of 1% of our dis¬ the end cr his day. Also many
posable ipccme for foreign travel. ! travelers seem to want to go
We are now spending only half
Continued on page 34
of

1% for this purpose.

14

(2754)

The Commercial and Financial Chronicle

Progress and Problems of
Consumer Credit Financing
By ELMER E. SCIIMUS*
Vice

President

First National Bank

Around

off

Though presenting the situation in instalment financing
favorable, Chicago banker

year as

slide
a

;;

deterioration of quality in automobile financing due to low

j

consumer

Volume

to eliminate sub-standard instalment paper. Cites recommendations of the Instalment Credit Commission of the American

of

Bankers Association urging! sounder consumer credit, and
discusses the problems arising from the subordination of one

•j

of

are

a

nearing

now

which

year

gratifying

has

from

the

end

been

most

operating

an

below

their pres-

ent

ings. You have

level, the lowest point in the
history of the industry. This certainly will be true unless the industry employs self-restraint and

all

adheres

standpoint, particularly
and

ume

to vol-

as

earn¬

enjoyed a
large volume
of

and

purchases,

lor

our

posite

sent

repre¬

series
First

the

of

The

National

Bank

Chi¬

have

cago

of

pre¬

pared

since

1935, reflect

nr'actices
exces-

and

ers

Elmer E. Schmus

a

year

volume for the

more

last

were

than

so

year

well

as

this

as

exceptions.

no

Only

of

six months of nearly $10.5 billion,

bursed

in

This

first six months of this year.

approximates the volume of
puichases
1950.

year

point to
m

the

entiie

this year greatly

a vmume

of the

ail-time

an

for

Present indications

excess

volume

1953,

in

high tor our composite

xigures.

The

profit for the first six

months of this year, computed on
an annual
basis, as compared with
net

worth, reflects about the same
earnings as last year, but I dare
the

say

will

result

show

with

Total

p0site
neariy

net

the

full

decline

a

1954.

showed

for

compared
for 1954

profit

decline

a

Net

year

for

the

sixth

profits

during

to

few

a

ordinated

debentures

and

million of unsubordinated

tures,

$2,107
deben-

total long-term debt of

or a

224%

in

earnings

the

in

past

taxes

years

and

well

as

failure to maintain rates

in

the

as

commen-

increasing costs.

$1,855
the

pe-.

the
pos-

sible for the companies to handle
the very substantial increase in
volume

of

purchases

paper

si|nce

the end ot 1950.

than

viewed

competition

desirable cut, unfortunately, we continue to hear scatis

nnnt°pr$S °

rntPQ

over

or

sub-

very

riod from the close of 1950 to June

charges.

Reasonable

increase

30, 1955.
This increase was
principal factor in making it

Greater competition has had the
eilect of lowering
consumer
rates

i

It

with

was

considerably

more

interest

ordinary

I

June

our

30,

that

1955,

re-

com-

posite ratios, made from information

supplied

by

of

many

with your mid-year audit

you

a

.,

,

,

•

high level but in

concern,

ported
costs

ol

lerred

because

by

sound

any

ftl,ck J,*?e, charges

not sufficient to

aie

operation,

income

loss,

longer-term

and

a

re-

cover

and

de-

attuned to

reserves

ine

purchases

paper

reasonable margin of profit.

The extremely low rates I have

referred to

are

apparently the

re-

market

for

a

both

cars.

less favorable
and

new

used

.

Our

last

composite

analysis
shows that the credit
experience
for

the

year

June
over

first

six

months

of

this

was
quite satisfactory.
At
30, 1955, balances delinquent

60 days were the equivalent

of slightly under

Vt

of

1%.

™t.,?lau^!?ieA-th®Lre-dllce<? rate? percent of repossessions _to
worth was

The

net

acquire business. The experienced

slightly under 1% and

S%o0Pthis theor°vS for' he" k kufd'aTed

was

aware

i«

that the rate

reasonable

primary
ligent
in

has

Inn?
never

cra^idemtion

and

It

handling the mine-run

to

service

develop

the

the

ifpen
is Intel

a

instalment
is

a

paper of

willingness

dealers

in

requirements

There

ness.

it

understanding service

the consumer and

linancial

credit

great

attempting to acquire
through reduced rates

their

that

will

hppn

wavs

and

finanrp

hazard

the

titibn
"An
2?nd
can

^

u

nf

Lof+L

esuit

in

Conference,




i

SisCredit
six

at

the

Chicago,

III.

nf

L IrS

rn^trariiti™

exoerience

months

of

the

foi

year

the

was

favorable, influenced of

tw

f£S
most

course

to

a considerable degree by the hi^h
level of the economy of the countrv

A

Look

c

equities, the practice of the more

experienced bank instalment loan
operators and of the finance com¬
panies is to adhere strictly to ad¬
vances of 85 to 95%
of the deal-

their

for

lots

the

some

cars

time,

models

1956

new

1955

are

to

manufacturers. Used car prices
continued to decline, resulting in

other reasons

tory^ invoice

accept longer-term paper with

...

^

..

u

Supp0®e W€Lg0

as

as

of

sound

is

principles

This may

create

In

my

opinion, the

pally in several directions.
there

quote

agencies

with

who,

fiex-

tain

-{„«-«

ous n

the

on

is

This

exresoes

easv

no

basis.

ment

credit picture

that

■

unjustified

'

the

risk

involved.

eeared to the ab litv and
of

the

borrows

to

or

maKme
making

certain that

!

i,

like

m

m appliautomobiles,

and ban.ks as wel1 as sa]?s Bnance

companies were expanding mate-

rially their instalment

paper

out-

Trade

extension

Managers'

Association

for

of

program cf edueating dealers to economic prob-

a

lems

time

and

a

the

efforts

cf

these

groups to curb what they then
designated "wild trading and undesirable terms."

It

might be well

rigid

set

almost
to

controlled

relaxation

terms.

of

terms

to

you

Sales

think

Fi¬

it

about

numerous

together

times

to

com¬

promote

economic worth

and

"Today
ing

of

time sales financing.

we

of the American Fi¬

it

the

meet

our

in

terms

of

the

automo¬

selling. Yesterday
joint opposition to con¬

credit

controls

which

led

fight to maintain the inalien¬

able right of the individual's free¬
dom to

buy and to sell.

"Tomorrow

we

.

again

engaged in that fight,

be

may

or any

other

in which it is to the best interests
of

the

full

to
sary

companies

to

and

our

establish

understanding of the neces¬
role of instalment credit to

maintain
can

public

general

member

Therefore,

should

was

sumer

the

credit

spearhead¬

are

understanding

of sound

bile instalment

im-

hold

Conference

public

value

flexibility appears to
policy to follow, and

competition
guarded against."

cause

nance

and

"The

future

the

extend

standard of

Ameri¬

living.
of

the

automotive

un-

sound

"Time

aneauaie

instalment

of

a

President, Bob

the

the social

be the sound

assistance in

of

have

automobile

j.

at this

issue

to

mon

k

possible

read

of manufacturers have made

'creditworthiness.' Loan applications should be more closely ex^aplaJdT£a L® rinHT™p and
determine lf a prcs"
eliminated. This reminds me, and pective borrower or purchaser

is

.your

to

future, automobile finance
companies which are independent

to good risks'' Xt might be wel1
to tighten up on the definition of

It

from

like

and, I anticipate,
in

true equity exists in

minimum.

should

"On many occasions in the past

and

fusing paper with 1UtlG GQUity
and extreme1 terms and tned t9
%ducSte deale+rs on te,rms and
do^" Payments, a good .P^rt of

a

tremendous

a

toward

again.

merchandise purchased.
There is no need to tighten credit

to

in bank¬

You have undoubtedly
read Bob's message, but I would

any

the National Automobile Dealers'
Association and the Automobile

sound

a

we

]

tember

willing-

agencies, banks, and finance companies combined in re-

credit

that

nancing."

adequate

cer[aln

sufficient

in¬

of

end

Oare, which appeared in the Sep¬

...

1 d0 believ.e that i£ sponsible

on

this way,

I

message

reason-

to

finances

In

And

able self-restraint and careful se¬
to them
• lection
of credit risks will not
The dealers, of course, have prin-! remedy.
cipally one interest, the sale of
"Lendin*
nolicies
should
be
result often

our com¬

use

the

to

world."

is
that they have to cater.

as a

sound

maintaining
our
present economic standards
which have helped to make this
country' the
greatest
in
the

it

entirely

the

contribution

"■

from

responsibiL-

to advise and

are

ing will be making

task

dealers—and,

for

major

customers and

our

personal

asai'nst

portion

terms

Our

bankers

as

"people" maintain their credit and

vet

warnins

t;me

fh

ior

give

instalment

to

the

automobiles, and

time all pressures to
credit on ex¬

same

resisted.

ities

rpaintain confidence in themselves
t

help main¬
high level.

a

cessively liberal terms should be

other

trvina

are

;

an

constructive

economy on

extend

on

fuev

on

Keel

credit

P'iL

this

of

for it is

so,

sound,

a

in

ondly, the finance companies, and
latterly the banks, obtain the mapaper

our

At the

ar®Kilvmffnt and
"^d.mtion
the on^hand and

due

therefore,

on

stalment

uanrf.

am

.

munities

restraint

study

not, do

guide

pXPrrjsiP«

must

and sensible basis will

"In the opinion of the ABA Instalment Credit Commission there
is nothing wrong with the instal-

their

Terms

on

you

Even

are'lunnm'tbig'a hkh^ateof busi-

regard for the safety of their
credits, reach out for the less
desirable
but
more
profitable
paper, thereby forcing others to
follow the pace set by them.' Sec-

of

spe¬

"A continued flow of instalment

credit

,

If

waged by the federal Reserve
Board has been moving from an
easy money policy loward a more
restrictive money policy.
JLnis
effort to avoid fuither inflation
deserves the support of all bankgfs,
but the situation creates

First,

without

a

by

Keeping Our Economy

,

.

of

The battle against inflation being

credit
competent

less

Buyers

special

a

brochure.

bul-

this

from

excerpts

nder ex13""?

...

certain

always

are

of

each

made

^ anj' easy
a
GX~
tended terms have created some

for
princi-

lie

to

issued

enlightening.

.

reasons

volume

substandard

brochure

Position

at

paper

Credit Policy

will increase and the

agencies, banks, and
nance
companies alike will
perience sizable losses.

in the bulletin

made

have

letin.

sell

credit

im¬

I

j

volume, but, on the other hand,
will draw many people into obligations which they will find difficult to meet.
As a result, repossessions

the

further

the
Conference,
Chicago, 111., entitled "The Equity

.apprehension among gove nadditional mental and banking authorities,

some

emphasize

American Finance

bulletin, "Timely Notes on Instalment Credit," to its membership,

pur-

to

is

the basis of terms alone.

on

a

ognizing the unsound trend in instalment paper recently issued a

have

been a
in the

One of the most serious violations

credit

present

Longer Than 24 Months."

selling.

instalment

of

not

portance of real equity, reference

1 said thls to you !ast year' .™at was getting too far in debt and
in 1941 the executive.committee through a process of selectivity,
af;k a short bad presented to it a request of fringe credit risks could be held

high records
well

principles

does

certain

substandard

of

of the sound rules and credit

some

and

When
planning is in¬

doorstep. The Instalment
Credit Commission of the American Bankers Association, also rec-

„

I

To

your

Deterioration in Quality ot
Instalment Paper
Throughout the period
just reviewed, there has

confused

resentatives should be contacted."

cial

matter

tinuing decline in used car prices,
_

this

volved,

this

structure.

floor

problem for the lending bank, in¬
asmuch as prices can be checked
easily with invoices. When such
financing is not engaged in, then
local distributors or factory rep¬

here and my remarks
to
you
should not carry
tke implication that I place the

to meet
An important factor in
this trend was, of course, the con-

in

price

wholesale

presence

ments.

The fac-

to be the one

seems

item

stable

chaotic

years.

well as the ininstalment pay-

as

or

dealer's wholesale costs.

a

the financing agencies for

be

:

factory invoice.
In
a
number of instances, retail ad¬
vances
are
being predicated on
the basis of $100 to $200 less than

small equity or no equity in
the merchandise financed.
This
would be most unsound, and is
best illustrated in a chart prepared by your association involving the sale of an automobile

cars to

costs

ers

Bark

f-mG and see
result of operabons under a somewhat less favorable economic climate. In the
Spri"g 0 J9?3 sales were setting
ances

Ameri-

Thit^f

onlv

fprtainiv it

C01?pe" all-time
a

such

address by Mr. Schmus
Annual Convention of the

finance

1

hiahiv

thrpat

nf

without'0 fear

in

volume

mrincfrTr

5'

busi-

'

Thp

Spring, and

vised production schedules of the

in

financing field.
an attempt to arrive at true

"In

supply, but by mid-year this con- .of a model changeover period, we
dition was well on the way to may well see "wilder'
trading
correction as a result of the re- and experience greater pressure

reports. management

ffif
!
lnstalm,e"t My greater interest was only
k!>?„!! „,'la .3
Tug
natural, for I was well aware
JJ toive cause for considerable that volume was continuing at a
1 agencies. These reports
-

this

the

for

dealers selling new

while

chases and at this time there appears to be a tendency to abandon

over $268 million, or apr
proximately 50%. Long-term debt,
consisting of $575 million of sub-

million,

in

last

This has added to the confusion in

the

have

^o experience the customary up- being delivered at the front door
swing in sales of, all durables, of the showroom. If this lnvenAppliances continued >in large ,tory situation exists in the midst

slightly

nearly
12%%
of
average
net
.worth, a quite satisfactory return,
The principal factors in the de-

with

supply

since

time

from

failed

days'

classes

fering tremendous discounts from
factory lists and the promise of
more
if a trade-in is involved.

indi-

dealers

car

known

cases

unavailable.

are

ures

mar-

in

these fig¬
It is a
fact that in most • price
automobile dealers are of¬
most

in

suspect we may see some new

\

:

progressive deterioration
quality of instalment paper

a

surstC

31, 1949 and Dec. 31, 1940,

short
of
$800 million,
an
increase since the end of 1950 of

dars

over

increases

;

thousand dol-

of

operating expenses,

'

peak, and the aggregate
capital structure of the companies

$2,682 million, shows

were

first

car

stocks

car

new

30

used

information

used

of

passed

as

and

new

Recent

that

hands

Car

an_time

stantial

in

the

outstandings of our comcompanies
amounted
to
$6,200 million dollars, an

consecutive year but amounted to

cline

the

kets.

which you will remember as quite

dis- -ability

were

dividends

amounted

net

both

cates

at

43%%

paper

price

substantial repossession losses. As
1953, the experience in 1954
any
3S
to delinquent balances was
time in the history of the indus- quite
favorable.
However, the
try are so necessary because of percent of repossessions at Jun;e .on terms of 36 months with a true
the substantial volume of long- 30, 1954, of better than 1 %%, was down payment of 25%. This chart
term, low - down - payment paper so all-time high since 1937. Loss shows that the creditor has an
purchases.
* '
to retail liquidated was also high exposure of 22V2 months. In other
Our composite companies have at
1.36%.
This trend; indicated words, the purchaser builds no
been conservative dividend pay- the consumers were relinquishing equity in the car for nearly two
this time

at

contin¬

a

uation

credit

Obviously,

of adequate reserves, which

nance

30, '55,

which

policies.

sively low rates may not permit
the
development
and
mainte-

com¬

figures

at June

sound

to

high

as

was

In the Spring of 1954, we

be broken

cars.

substantial loss years.

scramble for paper that rates may
well

new.

in

guide would be futile

be used as a

This condition

concern.

cutting, bootlegging,
overtrading
and
sales
made on a basis of trading doU
iars,
which
influenced
greatly

quickly into

on

contracts

because

as

resulted

1953,

repossessions

at Dec.

V

class of credit to another,
We

in

car

downward

their

moved

market

on

according to
composite figures, reached an alltime high. At year-end balances
delinquent over 60 days were only
V\ of 1%. However, the percent

down payments and over-long credit terms. Urges
finance companies and banks educate dealers on credit terms

j

we

in

equities

real

the

to

purchased. Any attempt to 'estab¬
lish correct retail prices that- could

siderable

taper

Used

selling prices of new automobiles
considerable doubt as

has created

practically all of this
well as in 1954, the inventory position of new and used
car
dealers gave cause for conyear,

before
up

inability to determine true

"The

During

con-

to

long
backing

floors.

started

and

1953

began

were

buyers'

a

of

not

was

dealers'

prices

over

there has been

warns

it

appliances

of Chicago

middle

spending

and

the

past

the

sumer

Cashier

and

The
credit
agencies
scrutinizing their paper, purchases, since they were in a position to be careful of the quality
of
business
put
on
the books.
were

Equity

What Price

for your Conference to make a
request at this
time of these
same bodies for assistance in a
similar program,

standings.

22,1955

Thursday, December

..

.

industry, America's
Continued

greatest
on

em-

page

35

\

Volume

182

Number 54S2

.

.

The Commercial and Financial Chronicle

.

(2755)

i-.i,

term.- The progress

The Dixie
V.

Crop Situation

By ROGER W. BABSON

.

well

augurs

for

1953-56.
sweet

Calls

»

Southern

a

strong agriculture, is

agriculture has

way

--

b°rco,she
raises

Rice

come

since the days when
Dixie
was
largely
a
two-crop
country. Besides cotton and tonow

wide

a

in

is

sippi,

and

1955

which

of

greatly

na¬

tion's

total

farm

income.

The bulk of

'

the

domestic

cotton

in

year's
t

c a

U.
is

the

U.

consumntion

S.

Dec.

William

N.

glass

morning

I expect

of

d i

n

-

total

outturn

surprisingly large in

view of
plantings last

the sharp
cuj in
spring. Were it not for the

the

from

year-earlier

Three New Partners

orange

Florida's Valencia

croo

should be

—up

7% from

a year ago.

Admit Brewer to Firm

Arizona

and Texas should produce

an

CHICAGO, 111.—William Blair
& Company
135 South La Salle
Street, members of the New York

ad-

and Midwest Stock Exchanges

southern farmers to get more out
of less would wreak havoc with

ditional' 1,000,000 boxes.
Florida
tangerines should be around 4,600,000 boxfes-down 10% from
last year.

Brewer

cotton

grapefruit is indicated in Florida,

Brewer

Texas, and Arizona; but at
edly low price.

for

ernment

prices

with

ever,

this

loan,

this

gov-

of

ability

How-

season.

prices supported at

a

good average level, the white sta¬

a

wick-

curing 1955-1956.
Tobacco has long been a major
crop
in the South.
Millions of
Americans

will be* heavy—a fact favorable to

women

smoke, and now with
unfortunately snicking,

the number
As

the

is

bound

to

increase,

possible lung
malignancy from smoking apnea-s
scare

over

—u

for

canned

products this
-

of

pnces

r

r

.

-a.

fruit.

t

T

•

bers

to
have
subsided,
this
year's
above-average U. S. tobacco crop

have

should

no

w\

Incidentally, I am told that
use
of filter-tip ciga¬
rettes
should
sharply boost de¬
mand
f o r~ lower-grade
tobacco.
However, I am not an expert on
smoking problems!
increased

*

4-

r\

i

v\ /\

Other

difficulty moving

into consuming channels at a fair

price.

r*>

maintained

The

.

urge
r>

4

r\

at

a

that quality
L
rfln
T
A1
high level.
r\ t

-1

be

is>a

Sw,pt
Sweet

Potatoes
Potatoes,

onrt

and

Riee
Rice

A-sizable amount of sugar cane
is grown in the

Louisiana

in

South, principally

and

year's indicated

Florida.

crop

This

of 7,056,000

is well above average, but is

tons

by no means excessive. The sweet
potato crop also is mostly slouthern-grown.
The 1955 estimated
U. S. crop of 36,100,000 bushels is
21% above the short crop of last
year,

53

but is 23% below the 1944I forecast a good de-

average.

mand

at satisfactory prices.

.—

—

is close to

and tung

teeming forests
of

iw
raw

are a

materials

The South's
major source

for

the

t

naval

s'.ores the lumbar, and tne boom3,

will

admit

A.

E

A. Jacobs, Jr.

Beane

to

general

Three New Partners
For

Hayden, Stone Go.

of the New York Stock

Exchange.

Hiller & Gross Join

New-York City,

nounced that Melvyn Hiller and
Stanley Gross have become asso¬
.

ment.

with

of
.

the

the

.

Both

.

were

Gordon

&

firm

i

.

•

1, 1956. The three
period cf years.

men

N. Hall

Henry

Neearsulmer

Mr.

Donald M.
is engaging in a secu-

following his graduation from Dartmouth

i




Street

of

in the job, once

once

bureaucratic

atmosphere,
good

as

the

At this

had

were

breath¬

he

would

spender

a

of them.

any

of Donald

Campbell In¬
Mr. Campbell

was

previously with J. K. Mullen

Investment Company.

particular luncheon I learned that

■

S.

ANGELES, Calif.

Wen

staff of

Wilshire

has

Bargeron

began promising aid to Egypt, Afghanistan, India and all inter¬
mediate points.

{,

Immediately

there

started

in

4

this

country

clamor

a

among,

the global thinkers that it was up to us to give even more
these countries.

We

in this

was

pundits.

simply couldn't let Russia out-do

aid to

Indeed,

us.

atmosphere that Hollister appeared before the

Had he said it

tinue to cut down
have been

on

all

was

been

California

—

Mimi

to

added

the

Investors, 3924

Boulevard..

,

is that he would

guess

my

out of office within three

run

and that we could con¬

nonsense

foreign aid,

our

Such is the Wash¬

days.

ington propaganda situation.
At this luncheon I

25 newspapermen,

saw

foreign correspond¬

ents, and therefore, global minders, pounding Hollister mercilessly
to

that

say

Russian

foreign

our

promises.

Cold

"United

to

be

States

then he

the

circumstances

new

assistance

some

with

lip

intended

he

which

does

have

to

say

for

increased

an

be

spent

it.

at

serve

An

re-

And

tremen¬

all.
to

He

>

fund from

whenever

fund,

emergency

the

of course,

administrators it

Under most

quiet the global spenders.

that Hollister didn't make

good impression on

a

They were quite plainly disappointed.

conference

press

You

blandly

be

Per¬

.

happens that on the same day Secretary of State Dulles

so

a

was

emergency

countries

foreign

to

sonally, I thought he made sense.
It

would

would silence the globar spenders.

given

it would

But

newspapermen.

held

it

foreign nation,

a

warranted

to

be.
must

I

the

be

activities

not

would

no

He tride to explain to the

proposition which I thought

a

ask

to

could

aid

Russian

re¬

make

to run in and out-do the Russian promises.

us

dously smart and which
said

He kept

could

we

He tride to explain that, if every time Russia

things.

came

so-

that Russia's promises and Russia's actions were

newspapermen

diculous for

the

Steps Up Foreign Aid to Meet

"substantial" reductions in foreign aid.

promised

meet
in the

to

It would have been front page news.

under

two different

stepped up

meant headlines

have

help admiring Hollister's resistance.

that

peating

aid had

This would

War.

couldn't

imagine

can

at which he

said practically the< same
*

my

If it should be there is

there would

no

is to

Federal aid to education program

be doubled.

I don't

chance of any tax reduction,

to be little chance for

seem

.

surprise then when the Administration

that foreign aid

announces

believe it.

highway program or a

a

which the Administration spouts

much about.
some

.

.

.

the

the defensive.

on

for

thinker

proposal of

in
a

the Administration seems

to

than $5 billicn foreign

more

is the way to flabbergast the Democrats and throw

program

them

brilliant

is that

have sold

months

Like

a

.

bunch of fierce terriers they have

yapping at the Administration's heels about its

(

peri!."
They have been similarly yapping about the Administration cutting the military budget and throwing us upon the mercy of the
"penny pinching" in the matter of foreign aid "at a time of

military budget by a billion.
This

They

is

are

action

has

left aghast.

an

t

really very clever politics.

attack

But the taxpayers

clever

,

Incidentally, the Administration has decided to boost the

enemy.

launch

(Special to The Financial Chronicle)

•

Carlisle

thought he would be able to recommend a reduction the Rus¬
sians "stepped up their Cold War" as the expression goes. They

ministration's

.

LOS

as

.

been

the

under

With California Investors

Neearsulmer, Manager of the Buying Department, became
•

—

M.

Hall, who joined Kuhn, Loeb & Co. in 1921, is Manager
Sales Department.
*

College in 1924

the

been

(Special to The Financial Chronicle;

name

Advisory Department.

associated with the firm

apprenhensions

probably turn out to be

aid

rities business from offices at 815

cf the firm's Institutional

Mr.

ing

What

formerly with Philip

vestment Company.

have been associated with the firm

Mr. Ely, with Kuhn, Loeb & Co. since
1943, is Manager of the
Investment

because

wrong

,

Campbell Opens

Seventeenth

a

the

spenders' apprehensions about Hollister

depart¬

,

/BOULDER, Colo.

Campbell
-

for

amid

Co-Man¬

as

sales

"

Jan.

or
agency, or just
give-away unit is now;called.
particularly because when Hol¬
Taft follower, was appointed about a

save

so

retail

Company.

D. M.

Kenneth

Hollister, head of the Inter¬

thing that Hollister did.

L. D. Sherman & Co., 30 Pine
Street, New York City, have an¬

agers

foreign economic

spenders, in an Administration effort
foreign aid, Congress apparently being
against it — I had written that the global

to

L. D. Sherman & Co.

ciated

for

initial

small newspaper luncheon

a

,

banking firm of Kuhn, Loeb & Co., 30 Wall

Charles J. Ely

billion

the

Corporation

Russian Threat."

&

Frank

B.

Aid

a

called

ship>
laper
- '
ing paper and pulp industries. P
expect a continued good demand
for these products, allowing for
tlm "~ual seasonal variations.
Although Dixie is not without
its agricultural problems—particPierre R. Bretey, John J. Mcularly cotton — research, knowhow, and patience should solve Mahon and O. Lynn Shurtleff will
most of them over the longer be
admitted to partnership in
Hayden, Stone & Co., 25 Broad
Street, New York City, members

members of the New York Stock Ex-,
cnan»c, nave announced tnat cnarles J. Ely, Kenneth N. Hall and
Henry Neearsulmer will be admitted to general partnership on
Street,

John

ago

Ex-

paftnership
and Herbert
B
geeley Max L Young and C Mar¬
—'
Wood, Jr., to limited partner-

Kuhn, Loeb & Go. to Admit Three Partners
The investment

3

Jan

Pgan cr0? th/s 1 will admit Harry
and

$5

that

announced

double

this would be unthinkable.

Co., 36 Wall Street,
New York City, members of the
New York Stock Exchange on Jan.

but the peanut crop

average.

firm

Admit New Partners

nuts, which contribute to southern

ProsP.erit>'short,

the

time,

Bache

than

more

than

more

went

I

consumption.
Given
favorable
weather, the outlook for the sea¬
son
ahead is good.
I must also

year is

with

a n

Mr.

Bache & Go, Will

winter

...

Sugar,

b i

partnership.

major producer

mention peanuts, pecans,

a

Vilas '
Jr., James C.
Dudley and Jerome C. Eppler to

Miscellaneous Products

South

been

on

Homer'

f

of fruits and vegetables for

F

th'e New
IhViiew^York^Sto'ck

of

change

1_:

I

has

G

partnership.

Cyrus J. Lawrence & Sons, 115
Broadway, New York City, mem-

..

growth for the processing
division of the South's citrus busibut

admit
to

Three New Partners

forecast

I

will

some

undoubtedly

season

fresh

1

frozen

and

mrther
further

ness,

hear

national

on

Gyrus Lawrence Admits

industry has forged ahead rapidly.
Demand

to

It

The processing end of the citrus

ple will add materially to Dixie's
farm income

Jan.

A good total outturn of

for

wrong.
Hollister has been fight¬
ing to put some realism, namely reduced ex¬
penditures, in foreign aid. But just when he

William Blair Go. to

in the vicinity of 39,000,000 boxes

Congress

whatever the

I

outturn.-

ask

global

Shields

67,COO,000 boxes—down about3%

to

and military aid next year, I attended

early and mid-season- Eugene PL Catron to partnership,

an

going

commitment, that is,

year

&
Company, 44 Wall
Street, New York City, members
juice or grapefruit juice probably, of-the New York Stack Exchange
originates in Florida, Texas, or on Jan.. 1 will admit Homer F.
Arizona. Barring a sudden freeze,- Looker Thomas H. McGlade and

Ycur

couple of weeks before the Administration

was

I

orange crop for 1955-56 of around

d

e

admit

A

it

lister,

,

the

i

S.

will

Shields to Admit

in

likely to average some-;
what higher over the longer term.Harvest,

ioxley

Moxley to the firm.

are

Golden

31

of the News

By CARLISLE BARGERON

and

Prices,

This

South.
Babson

is

crop

grown

W.

Although

above the 10it will by no means

is* excellent.

Ahead

the New York Stock Exchange
®ec- 29th, will admit Theodore
Yankauer,, Jr., member of the
Exchange* to partnership, and oh

crop

Missis-..

en-

hances the

fact,

for

Washington

hard

beat.

Shearson, Hamill & Co., 14 Wail
Street, New York City, members

burdensome, since the out¬

prove

exports

sale

Texas.

From

booming facto¬

combination

a

Add Yankauer,

is well

crop

look

products, the

Louisiana,

year average,

variety of valfarm

fairly important

a

The

Shearson, Kamirill to

sugar,

"hard to beat."

now

Arkansas,

uable

Roger

production of

says orange crop promises to be
Concludes South's great strides in indus¬

year.

try, comhined with

a

to

potatoes and rice, and

.larger ihan last

long

increased

to

plus

ries, will be

materially to Dixie's farm income during

attention

future.

mac.e great strides
the industrial front. A
strong

on

agriculture,

tobacco—Aill add

already made

the

South has also

Mr. Babson in discussing the crop situation in the South, says,
because of price-supports, the "old reliables,"—cotton and

~

15

on

are

taken

the

Unquestionably the Ad¬

steam

out of the Democrats.

Presumably they will not turn around and
the Administration for being extravagant
likely to get caught in the middle of this-

game.

"MERRY

CHRISTMAS"!

j

16

The Commercial and Financial Chronicle

(2756)

heating oil business. Houston
Oil, around which myriad and
largely nebulous rumors are
swirling, was able to sky¬

THE MARKET... AND YOU

rocket

By WALLACE STREETE

at

Petroleum
and

Backing
tinued

to

filling

con¬

characterize

there

are

some

times
was

By ARTHUR B. WALLACE*

able to do well

This Week—Bank Stocks

occasionally as demand cenimportant fi- tered on it Gulf and Jersey

The

the

nancing problems connected standard Oil among the instock market this week with with
buying the new fleets dusjry leaders have featured
the awaited
year-end rally and partly because, as several on fajr
strength without fanstill not showing up to
any of the market men point out, fare
considerable
degree. Except something like only 10% of
for rather persistent
Gingerly Cautious
strength the population has ever travin the aircrafts, most
Tax selling appears to be a
major eled on commercial aircraft.
groups ended more times than
not in

thoroughly mixed

a

condition.

Warren Foundry was

.

*

The

*

only real action

erally
house

notably Westing-

which

cold

gen¬

in issues featured

was

in the news,

and

dividual

*

blew
the

as

both

hot

long-drawn

strike of its major plants as¬
sumed different facets. West-

inghouse is

of the issues
relatively harder
treatment this year than the
industrial average which is
still hovering at a definitely
lofty plane. It sold above $80
earlier in the year before the
one

that has had

strike

troubles

and

an

un¬

continuing

Split Candidate

up

for

favorite

an in-

not too apparent, although it
now
assumed the status

and

owes

market

a

to

into

ventures

a

renamed

of

the

time there has been a steady erosion of holdings of govern¬
obligations, coincident with practically the same rate of gain
in loans and discounts.
And this is a logical development as the
latter category of earning asset gives the banks an average rate of
some

ment

handicap to gendespite

return that is about 70%

the

An

The

Interest

several

issue

outstanding

the weak side

was

United

come on

on

hard times

10

-

*

;

*

Pont

#

Chrysler took the

news

of

times

more

than

further

not

leading thq^v'ay downhill

on

auto

sales

rather wide losses that

tries

*

*

more

conditions with the fate of the
steel

industry linked rather
importantly to auto sales.

great significance. Steels have

'

*

than the rest. Alcoa has been

A

While

ing to

are

when

was

well

it

announced

along to solv¬

ing the two major problems
of excessive noise and

reverse

water

Reserve

the

this.
is

demands

the

on

probably it is correct to

is

year,

*

so

But they could come

nation's

With indus¬

supply of credit

anticipates

this

is

and

interest
of

one

that because

say

rates

further,

the

tightening credit,

position

which

reason

in

are

we

of

the

pre¬

com¬

Federal

tends

turn

to

reasonable level.

a

be

on

their books

obvious

rate to 314%

There

have

that

to

in¬

the

been

some

And

as

losses

reduce the tax

for

effect

full

not high.

are

modest

a

it takes

some

interest

affected

not

are

tax

losses

are very

profits shown in 1954 by
as

rates

of

from

comes

There

amount

months for

rates

because

until they mature,

the

rise

in

the

prime

is only now beginning fully to be felt.

large banks, but these

used

money

advantage

get the full benefit of increased

already

will

name

the

derive what

banks

why they may not go higher by

and still be at

it

the

many

in

taken

security holdings by

small compared with the large

of them.

The security losses

offsetting

purposes,

operating

are

profits

to

liability.

"MERRY

CHRISTMAS"!

The failure of the

time coincide with, those., of the.

Jr Cassafo Joins

John Bleakie to Be
W. E. Button Partner
BOSTON, Mass..-— John M.
Bleakie on January 1st will be
come a
partner in W. E. Hutton
&

Co., members of the New York
Exchange:5!' Mr. Bleakie ts
New England Sales Manager for
the firm with headquarters in the
Stock

Boston

office,

75

Federal

Street.

.

Kidder, Peabody to
Admit Gates, Pereyra
Kidder,

Wall

Harris, Upham Adds
(Special to The Financial Chronicle)

Oils were somewhat more
braking the high¬
OAKLAND, Calif.—Arthur E.
speed planes. Little of the in¬ buoyant, which isn't
surpris- Stewart is now associated with
vestor enthusiasm was able to
ing since their popularity is Harris, Upham & Co.r 415 Fifat
neak wlipn
spill over to the aircrafts usuallv at a peak when +Vm teenth Street. Mr. Stewart was
usually
the
previousiy with Walston & Co.
themselves, largely because winter weather booms the and
a

Schwabacher & Co.

Peabody

&

bers of

the New

change,

will

1

firm. •"•

of

g

'

.

.

Members New York

Bankers to the

Kenya

Stock

American

Exchange

Telephone: BArclay
Bell

(L. A.

Teletype—NY

Y.

7-3500
1-1248-49

qibbs, Manager Trading Dept.)

Specialists in Bank Stocks

Government

in

and Uganda
Bishopsgate,
London, E. C. 2.
Colony

Head

Office:

End

26

(London)

Branch:

St. James's

Square, S. W. 1.
Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliin

India,

land

Stock Exchange

Members

120 BROADWAY, NEW YORK 5, N.

BANK

INDIA, LIMITED

13,

Laird, Bissell & Weeds

admit

Dudley F. Gates and T. Edwin
Pereyra
to
partnership
in
the

West

Bulletin On Request

17

mem¬

Stock Ex^

York

Jan.

on

NATIONAL

Higher Bank Earnings
In Prospect

Co.,

Street, New York City

Branches
*

ratio,

the Treasury will not be too avid about

tion*

'

capital by

10-to-l

expanding business.

banker

And, after all, historically,

no

shortage that is forcing nancial writer for the "Chicago
cutbacks in produc- Dai]y News."
*

Along with

new

None of them show deposit

protection of deposits.

fore-handed

rates; and

crease

drastic

for




expected to raise

long-standing orthodox

Agency

demand

thrust

the

pay-out ratio,

average

logical expectation for 1956.

of the banks'

care

election

an

hardening

loans

good bit of the aircraft the better-acting member of
Albeif Frank
strength was largely due to the aluminum section with
John Cassato, Jr., has joined the
the forthcoming shift of trans¬ Aluminium, Ltd., the
poorest
sinrp
Public relations department of
port lines from propeller to artirm since it Vmq imnnrtnnt Albert Frank-Guenther
acting
it has important
Law, Inc.
jet power and Boeing was in problems to cope with in the Mr. Cassato was formerly a fithat it

and

grow,

propor-

been subieet to snmo soiling -Chronicle." -They are presented
Deen
suoject to some seiiipg
as those ^ the author only V
v
at times with Bethlehem
giv-.u',^-r.<:

ing ground somewhat easier
Jet Strength

a

growing bigger,

hasn't

sentiment.

new

pared for it in time.

relatively

*

bit

the

,,

favored than
Metalsfollowed xThe gen- year-end rally, to get going
the others by the market ob¬
eral
market
servers. To a
pattern rather long before this is only mildly
good number of
market students, the i motors faithfully with1 mixed price-disappointing, apparently. %
moves at
have become: an
any given time that
[The views ^expressed, in this
important
mostly barren of any .article do not necessarily at any
barometer of general business are
a

are

above

about to take

harder than the others in the

being

putting

the old; United States

strong earnings trend and low

increases

much

split,

on

five-for-one split.

a

all necessitous for the

at-

are

$3.20

increases in capital funds via rights cannot be said to be at

jng down in the housing field
the

two-for-one

a

versus

offering rights to their shareholders.

banks

assumed

announced

these, several of the banks

since

Hons of anything too serious,
tributaftle mostly to the fact Despite the fact that prices
thai/stock split hopes have have
pretty well discounted
auto section,
although—G<
proved groundless up to here, the
good results that the an^r'^er-alJVlotors was^^fo stranger In the
drug issues, Schering nual reports will disclose,
to smalHnirraslsigns. This ac¬
had an uncertain time of it
tion of the giants was
earnings for at least the early
enough after its recent
good advance portion of next year should
to keen the independents re¬
had f i n a 11
y bumped into be bright reading for invesstrained although Studebaker
■*
tors and help bolster market
had shown tentative signs of profit-taking.

slow

plans

„

£

have

paper

prime name loans went from 3% to 3^4%, with
rising proportionately.

$1.75 dividend

a

With the

1least

.

on

Trust

FoIt

.

business

been

Reserve;

the extra

stock

its

...

short-term

other

Federal

year:

Manufacturers

but also for improving its

,.

the

at

.

have

$2.60; Guaranty while maintaining its $3.20 regular,
to 80 cents; Irving increased from $1.20 plus
cents extra to a regular of $1.50 plus an extra of 12J/2
cents;

with large outlays, not only
for acquiring its new subsidi-

,

rate

:

,

There

leading New York bankr'Have announced dividend

this

increased

any

^

on

rates

name

ratios

.

discount

and

city.

firm.

from $2.40 to

stock has been anything

aT

to

Bankers Trust had two, with the dividend
going first from $2.40 to $2.60, and then to $2.80; Chemical Corn
first announced a 10% stock dividend, and then, for early
1956,
rights to subscribe to new shares; First National City an increase

the company has been faced

Dye

ex¬

upward changes in rates in recent months; and this

Six of the

unexplained runup plant.
quite obvious¬ to above
$38
Some
hard
The six„Month Outlook
ly to use the fat tax loss credit
drops this week came close,
to offset the earnings of the
to clipping the issue a full $20
th®
PUl-^ rU""
other enterprises. The" stock
under that optimistic level. In n!nSj°
the mid-year
was easier with some
persist¬ one session alone it lost some
?.f 1956i the Seneral e*pecta"
ence
after the sketchy an¬ 10 r/
|
tion is tor an eventual penelz'% in value.
lincrnouncement of the plan that
tration with vigor of the 1955
*
*
*
didn't
disclose
any
of the
peak for the industrial averChemicals generally were
pertinent facts such as the
age. So far the buildup in
on
the heavy side with du- auto inventories and the slowbasis of exchange, etc.
Kaiser Motors,

since

the rate

increases

°"lredt Continental Foundry,
sensation

several

year

™arket discussions was BlawKnox which re c e n tly acmarket

In

Loans and discounts

reserve

continued

the

acceptances

seen

lesser

in

central

a

have

rates

increases

bankers'

™rket spectators. Another of
the secondary issues that was
of Matured in several of the

Outstanding Loser

which has

requirement for banks in

tious side and

a

greater than that from governments.

Sept. 30, 1955, government obligations in these

panded by some 22%. This shift gives them a more lucrative
earning asset, while at the same time their holdings of cash and
governments enable them to maintain a strong position as is a

starting to dry up. Marletters, consequently,

but

months to

12

banks' portfolios contracted about 25%.

earlier indications that

was

issue.

12%.

ry
offering of short-term government paper was not so
received, but it is not at all to be wondered at because for

well

fact

the

to

A recent

bit of its volatile

behavior

10%

of

were

split candidate. This is-

a

for bank stock earnings continues to
improve,
leading New York City banks will not only be at
all-time high, but will better 1954 by something of the order

an

definitely on the caudelving gingersue, available in the last halt
jy among the secondary issues
dozen years in the $20 brackancj those most depressed by
et, rushed to an all-time peak
year-end selling,
on
some
multi-point gains,
and was apparently in posiInternational Telephone
tion to do joust with the par
(hi
f
Det since
barrier since it already has ™as something f a pe/ s*"c®
forged across the $90 mark. there 18 ro°m f°r
The company has been divi- Improvement, in the dividend
dend-less for the last decade ln
^ opl™ns °.f 8fera
of

that the floating supply
earnings statement
clipped some $30 from its best stock is below 100,000 shares
with the president and his
price.
*
*
*
family owning more than half

Aluminum, which
has had a pretty buoyant ap¬
pearance up to here, appar¬
ently disliked the plan to
group it
and other Kaiser

^

has

favorable

Kaiser

some

outlook

and those of the

eral market progress,

reasons

Thursday, December 22,1955

.

Bank and Insurance Stocks

Warren

and

.

.

Protectorate.

Authorized Capital

Paid-Up
Reserve

£4,562,500

Capital

£2,851,562

Fund

£3,104,687

The Bank conducts every

banking and
Trusteeships
also

description of

exchange

and

business.

Executorships

undertaken

'

Volume

Number 5492

182

.

.

The Commercial and Financial Chronicle

.

(2757)
On

Prospects for the Automobile
Industry in the Coming Year

this

basis

1956

sales

An

would

7.5

automobile

dealer

industry

conditions which boosted auto sales in
of the present

discusses

1955, and,

confronted by the

servicing

record number of

Economic data from all

to

appear

basic

that most of the

agree

indicators

nation's

sources

relating
around

made

until

the

figure

are

to

health

economic

Frequent upward
the

record

became

prophecies
background.

the

were

million

the

unit

and

receded

into

Many explanations have
given for the phenomenal

brings

of

While
una¬

nimity
of
opinion
with
regard to the
status

current
of

the

econ¬

there is
deal

omy,

good

a

of variation in
the

opinions

expressed

re¬

garding

the

duration

to

obtain

production.

manufacturers

portant

factor

were

in

been

sales

new

con¬

The

cars.

availability of easy credit also
played a major role in the record
breaking sale
of
automobiles.
Basically, however, the over-all
prosperity enjoyed by the nation
provided the solid foundation for
auto

in 1955 automobile dis¬

as

passenger vehicles.

of

be

Ripley Go.

established

Ripley & Co. Incor¬

63

Wall

City,

Scott

Cluett

Street,

announced

M.

John

and

New

that

trends,

activity

for

the

S.

W.

Walsh

for

are

total

that for the first

and La¬

of

new

above the average rate for 1955 at

nstruction,

both

and

of $31.2 billion annually.
$28.3 billion expected to be
spent this year is as much as was
spent in the record year of 1953.

re s

i d

The

non-

ntial,

e

tractors

5%

be

A

above the

peak.

my

Yviiiiam G.

Dooly, Jr.

opinion

In

the estimate is

the conservative

on

opinion indicate the dif¬
ficulty encountered in attempting
to forecast economic activity in

for 1955.

the next 12 months.

timism

of

ences

Perhaps

predictions

industry is currently
contradictory
for 1956 than is the

automobile

industry.

no

the subject of more

During

the
past few months economic and in¬
dustrial

and

seers

forecast

prophets have

automobile

sales

production for next
from

ranging

year

low of 4.7 million

a

and

well

to

the 8 million units produced

over

during
from

4.7

to

on

the

based
nual

to

6%

units

is

assumption that an¬
in the number of
is

cars

per

range

a

million

6.0

growth

American

giving

at

of

rate

a

4

Following this
million automo¬

year.

reasoning, a 6.0
bile
production year would be
the peak of possible 1956 auto¬
mobile

sales.

This would

mean

a

cutback in production and sales of
million

2

some

record

current

units

from

the

height reached during the
year.
Such a drastic re¬

duction in 1956 would, we believe,
take place only if a substantial
economic

disturbance

While

cur.

such

within

ways

the

should

realm

of

al¬

pos¬

of

sales

the

of

above

the

In

models,

about

1

radical

the

that

bring

the

into

number
new

of

models

are

from

change

market

purchasers

credit
of

who

extremely

are

economic

fluctuation.

conducted

by

the

Commerce

indicate
the

of

decrease

Studies

that

in

of

the

re¬

dispos¬

consumer

able income by $1

to

Department

duction

$2

sensitive

will result in

expenditures

a

will

there

are

eral

situation

Reserve

cautiously
credit

find

is

While

still

the

in

Fed¬

has

gradually and
tightening the

been

reins,

there

is

at

present

indication that this has had

no

effect

been

then

for

How

sales

have

result

a

this

of

a

1956

hold

automobile

units will

in

dealer?

be

retailed

year?

Naturally the an¬
question will be de¬

this

to

termined primarily by the state of
economic activity and the
expec¬

tation

of

the

Presently
to

that

activity

or

income will be de¬

consumer

creased.

consumer.

all

indications

contrary, predictions for

1956 indicate

continuation of the

a

present prosperity, and it
certain that

trophe,

barring

such

economic

flationary
acter, the

a

major catas¬

war

as

appears

sudden

or

collapse either of

for substantial increases

in

outlays

Most

for

fixed

industry

the

to

plant

de¬

durable

stocks
while

goods

ventories
and

sales

are

held

by

distributors

that

1955 set

sales

a

matter

of

new

in

records

In late

7.0

now

production and

the

automobiles.

1954, predictions of

million unit year

were

among

the

history

a

6.5

or

during 1955
optimistic.

more

National

sociation

by
Dec.

the
12,

Automobile

forecast

U.

S.

released

Chamber

Dealers
to

of

the

As¬
press

Commerce.

1955.




and

manufacturers
from

the

of

been

Assistant

except

December,

for

about

1952,

four

years

military service, has been iden¬
with
the
Syndicate
and

tified
Sales

Divisions since his

tion

from

Williams

in Gross

crease

assume

income

$385

a

$405

struction
will

$42 billion by

for

1956.

billion in

increase

is

cer¬

America, indicate that nonresi¬
dential construction, both private
and public, may approach $28 bil¬
lion in 1956, representing a gain

further

assume

correlated

National Product

to

the

a

that

The

increase.

Department of Commerce stud¬
show

that

for

10% in¬
disposable income, the
increase of expenditures on auto¬
mobiles
is
approximately 20%.
in

every

again

by

-*r

been

been identified

with the

Mu¬

sinoe

company

formation

member of the staff of the

a

National

City

Company

of

New

York.

Public

construction

on

principally highways, schools
sewer
and
water
projects.
issue
approvals by local
bodies continue at a high rate,
with a near-record $2.5 billion in

Exchange Gels
Slate for 1956

such
SAN

FRANCISCO,

Calif. —R.

William

Bias, Jr., Chairman of
Nominating Committee of the

the

Francisco

San

Stock

Exchange,

announced

the

nominees

cancies

the

Governing

to

on

for

H.

(each

for

two-year

a

Gross,

Youngberg.

Stone &
A. Johnson,

Joseph
Stern, Douglass & Co., Inc., and
George J. Otto, Irving Lundborg
Co.

|

The

still

following

have

complete

one

Governors,

year

who
to serve, will

the Board:

George W. Davis, Davis, Skaggs
&

such

it

14%

private

Co., and Warren H. Berl, Ed¬

win D. Berl & Sons.

Exchange,
the

is also

a

member

Board.

Cahill &

to

Admit

New

York

Bloch, 11 Wall Street,
City, members of the

New

York

Exchange, will
Cahill, Jr. to
limited partnership Jan. 1.
admit

Robert

L.

there

over

to $2.8 billion,

this year.

a

10%

to

15%

increase, for public schools. Even
if Congress adopts legislation for
an
expanded highway construc¬
A

Press

Dooly at the
United States
Commerce,
Washington,

by Mr.
Symposium of the
statement

Chamber
D.

these

As

an

example

of

ex¬

the

billion, is second only

$2.8

billion

voted

last

Defeat of the big $750 mil¬
lion highway issue in New York
should

not

sidered

a

necessarily be

con¬

trend. Its very size at¬

tracted considerable attention in
the

Also,

press.

noted

that less

bond

issue

mitted

They

have

12% increase, for highways; and

*

that

are

should
half

proposals

in

occasions

it

than

be

of all

sub¬

are

November

elections.

considered

on

all

other

through the

year.

record-breaking

Major public expenditures for
public projects will be $4.6 billion,

Stock

noted

year.

expected in
of public

growing population. The total of
public construction next year is
expected to reach $13.2 billion, an

up

be

about $2.5

to

in¬

levels of
construction in recent years, most
communities throughout the na¬
tion have not yet been able to
catch up on furnishing all of the
public
facilities
required by a

a

Cahill & Bloch

also

While

construction.
been

should

A. This year's total of local
bond issues for public works, at

classes

increase of 10%

Ronald E. Kaehler, President of

will

tential, with booming commercial
building a major factor.
are

that has been contem¬
As to cement and steel,

Q. How about bond issues?

this year to ap¬

$8.7

all

highway

have

ample capac¬
their operations to
increased construction pro¬

slowly.

construc¬

billion.
There
indications of a $9 billion po¬

practically

Congress that

in 1956 than in 1955.

construction

proximately

the

pansion, the cement industry is
understood to be planning over
50% more outlays on facilities

be

over

to

program would gain momentum

as

Increases
P.

works

evidence

industries have large expansion
programs under way, and any
increased highway construction

industrial, commer¬
cial, religious, educational
and
other institutional. (Government)
estimates are that private non¬

term):
Richard

&

in

can

nonresidential

are

Agnew & Co.
Governors

year

crease

Agnew, Shuman,

public

approximately

gear

gram

expected next
practically all kinds of

residential

For Chairman of the Board:

William

Increases

tion

Wednes¬

on

for

va¬

Board

be elected at the annual meet¬

ing of the Exchange

proposals

approved this year.

of

plated.

local public
works which are increasing stead¬
ily under terrific demand. These
and

Bond

presented

any

increases

and

con¬

greatly expanded, high¬

a

contractors

are

S. F.

total

1956 probably

v

.

ity! to

be almost entirely accounted

State

for

Clay Committee and to commit¬

an¬

by

activity'in

A. Speaking for the general
contracting industry, the A.G.C.

commer¬

for

construction,

way program?

in¬

will

repair

Q. Will the industry be able to
take

other boom year.

in

Prior to that time,I he

June, 1934.
was

its

and

the

Questions and Answers

construction seems headed for

has

of

of the Gross National Prod¬

has

Walsh

much

added to the value

are

ployed.

rec¬

substantial

in industrial and

creases

the

over

of 1955.
categories will be

year

private

paced

rate

Gross

9% to 10%

ord-shattering

of

are

uct, and construction directly and
indirectly will provide jobs for
about 17% of the gainfully em¬

tees

of

us

disposable income rises at

the

industries

up

account

15%

of

Associated General Contractors of

of from

new

privately-owned public utilities.
In
the lesser categories, church

—and

crease

in

estimates

use

operations

Assistant

the

roughly

College

than 5%.

more

Preliminary

deliveries

While both the

added supplies.
When maintenance

cial

Mr.

tainly not unreasonable in the
light of current business activity
let

will

Vice-President, Municipal Divi¬
sion, since December, 1952.
He

from 1955's rate

to

5%

tion

has

Product

that Gross National

billion

this

slow

cement

in the volume of construc¬

crease

activity, and bolstered by a
continuing high level of work by

1954

National

disposable
us

gradua¬

1935.

Sep¬

These in addition to many other
considerations
point
to
an
in¬

ies

*A

strong

value of in¬

pansion of physical volume.

1956—and

is

Walsh

1953

the end of

of

It

inven¬

the

tember, 1955, is in part due to
price increases rather than an ex¬

Let

Sales

lines

below

are

during

Auto

M.

day, Jan. 11, 1956:

Product rises 5%

1955

investment.

according
plan increases in
equipment
spending

and

level

and

1956.

1956

groups,

heights of sound economic levels

The

over

survey,

the increase in book

new

will reach

has

since

point

next year.

char¬

inflationary

or

nation

a

Division

high levels of eco¬
nomic activity and of consumer
optimism. The McGraw-Hill Pub¬

year-end low to

To the

Cluett

continued

In

economic

John

nicipal-Canadian Divisions of the

does

the

many

swer

auto
as

of credit.

What
store

in

that

or

curtailed

dearth

tory

decreasing

Cluett

Vice-President of the Syndicate

an

the credit policies of

upon

lenders

on

that 1956 will be characterized by

Mr.

and

flux.

the

near

con¬

adding capacity, the constant in¬

of

,

However, presently
certainly no indications

automobiles.

Scott

have been elected Vice-Presidents
of the company.

large

a

sibility, it is most certainly not a
probability. It is true that con¬ lishing
Company Survey of Octo¬
sumer
expenditures on automo¬ ber outlines the
plans of business
biles

W.

the

their appearance!
state

attained

If resi¬

and

this year's highest achievement of

units

units irresistable by virtue of

The

level

continuing

for

probably will

year

steel and cement.

year, as
has been forecast by both govern¬
ment and industry sources, new

in

unlikely there¬

model

nonresidential

as

headache

next

construction in 1956 should exceed

million

1956

the

high

op¬

resulted

departures
It is

insofar

—

dential volume continues

level.

normal

1955 models.

for

public

general the

not

oc¬

is

event

an

revised

availability of credit and the

a

forecast

million

The introduction of sub¬

stantially

1955.

One

7.0

constant

steel

construction is concerned.

and

rate

a

residen¬

tial

quarter of 1956

business expects expenditures for
plant and equipment to be 12%'

a

side

6.5

construction

on

1956.

encouraging announcement
morning by the Commerce
Department and Securities and
Exchange Commission indicates

of

between

have much effect

amounting to
$44 billion, or

sales

next

this

?

Depart¬

merce

c o

the

at

An

es¬

units would have been reasonable

differ¬

11th

construction

session, it is doubtful that it will
in

These

Cousins

F.

tion program and Federal aid for

ments of Com¬

bor

Harriman

1955.

over

and local works is increas¬

school

consecutive

U.

Names Two V.-Ps.
York

of about 10%

that

year.

timates of the

Harriman

porated,

construction

new

this condition.

James

construction

new

rec¬

are

during 1956 another all-time
will

ord number of

indications

1955

past

upon

of

ing steadily "under terrific demand."

by the Herculean task of selling,
distributing and servicing a rec¬

sales.

Based

of

record

the year, representing a gain

Present
ord

im¬

an

molding

demand for

all-time

another

Says public construction of State

tributors will again be confronted

the
drastic
Certainly
model changes introduced
b,y cer¬

sumer

predicting

in

of

1955.

tain

In

Official

statistical data

highs.

not

Naturally this brief analysis is
by necessity an over-simplifica¬
tion, nevertheless, it appears that

byword

8.0

earlier

does

forecast¬

manufacturers

levels

in 1956

revisions

factor

economic

Washington, D. C.

be

mobile

vehicles.

passenger

must

or

record

to

Says automobile distributors will again be
Herculean task of selling, distributing, and

a

to

America, Inc.

million.

analysis. It involves quite
simply the determination of auto¬

economic situation with its high level of activi¬

million units.

8.0

factor

This

itself

By WILLIAM G. DOOLY, JR.*
Assistant Manager, Public Relations
The Associated General Contractors of

somewhere

activity in 1956, Mr. Dooly estimates that non-residential con¬
struction, both public and private, may approach $28 billion

ing

the basis

on

ties, he estimates that 1956 auto sales will lie between
8

lend

the

lie

and

additional

considered.

for

Construction in 1956

originally expected for 1955 may
be anticipated.
This means that

Controller, National Automobile Dealers Association

Spokesman

approxi¬

one
million automobiles
the normal 6.5 to 7.0 million

between

By JAMES F. COUSINS*

sales, of

mately
over

17

of

C., Dec. 8, 1955.

Reginald W. Pressprich
Reginald W. Pressprich, of 485
Park
York

Avenue, founder of the New
Stock

Exchange firm of R.

W.

Pressprich & Co., died sud¬
denly Dec. 15 at St. Luke's Hos¬
pital. He was 79 years old.
Mr. Pressprich was one of the
pioneer bond salesmen' in New
York State and was employed by
Vermilyea
Read
own

of

&

firm

his

Co. and Wm. A.
prior to forming his

&

Co.

in

death

1909.

he

At

was

the
a

time

limited

partner of R. W. Pressprich & Co.
and a trustee and member of the
Executive

Committee

Franklin Savings Bank
of New York.

of

the

in the City

The Commercial and Financial Chronicle

13

Others will design and in¬

ating.
stall

Automation
Senior Executive

Vice-President

Dr. Engstrom distinguishes automation from mechanization,
and says automation is more than a continuing evolution in the
direction cf greater mechanization. The introduction of elec¬
tronic control has accelerated evolution of automation, since

Automation
lo

many

means

be?* well

would
with

could

I

machines

the decision

of

in

need

your

turing and market aata, and, on
the basis of this, make decisions
as
to when there should be a

what

characteristics

I

am

to

say.

However,

tions, which
Electronic

au¬
I

tomation

and

sim¬

fore, in vastly greater quantities

such

ple

attempt no

■

simple defini¬
tion.

Rather I

shall

attempt
W. Engstrom

E.

cussing its evolution and

its pres¬
for
and

significance

future

and

our

industry

and commerce
living.

our

being will never be superseded
by a machine, there is no question
but that electronic systems have

started long ago

time as an evolution¬
in which human and
labor are steadily being

the present

process

animal

replaced by machine labor.
At
iirst,* machines took over the task
•of supplying and applying power.
Today, man does not supply the
necessary
to accomplish
production task, except in those

energy

where the amount of power

cases

complexity of control
Involved is very great. The next'
the

phase

of

Industrial Revolu¬

the

put such a factory in operation
taken place, but there
is no fundamental technical rea¬

have not yet

surpassed human infor¬
son why we could not design such
capabilities. Be¬
a factory.
The basic reasons why
this, some of the new^
nobody has seriously attempted to
concepts of automation are revo-*
build a completely automatic fac¬
lutionary.
For this reason, the
tory are economic in nature. No
coming of automation is some-,
of

cause

times

referred

to

Second

the

as

the

that

machines.

Rather, in con¬
sidering automation, we are now
beginning to deal with industry
and

commerce

complete

the basis

on

taking

system

of

into
from

count the whole process

material to

a

ac¬
raw

This is the

consumer;

the

steps

underway.

now

Broadly stated,
includes,

process

introduce

an

other

steps, the following:

product or part of a product
the total cost per unit pf

a

unless

automatic means is

work done by

less than the total cost of the same

unit

of

labor or

by human

work

by humans controlling simple ma¬
chines.
Such a cost comparison

usually the immediate govern¬
ing factor in any decision to buy
is

piece of automatic
machinery or an entirely auto¬
matic system. It is not yet estab¬
lished that the cost of a completely
develop

a

automatic factory for all products,
can be written off over the period
of

industrial

an

among

ing

or

objective in automation, whether
or not we
so
define it, for this
is surely, to be the final outcome
of

will

manufacturer

automatic method of manufactur¬

clear

make

me

other

and

relatively small

is

required
where

be necessary

to
_

Industrial Revolution.

and continues to

which would

mation handling

Let

Industrial

develop¬

technical

The

retical.
ments

concept of automation which I
am developing for you is broader
Revolution than that of machines controlling

Automation

ary

while
human

the

of

Mechanization to

From

The

Thus,

can.

intelligence

Automation

present, the concept of the
automatic factory is wholly theo¬
At

already

Dr.

give the
concept of
automation broad meaning by dis¬
to

ent

humans

than
the

I shall

needed.

be

Present Status of

speeds and accuracies and, there¬

matter,

and

will

skills

control

mechanisms at enorrhously greater

consider
no

will be low but new management

handle

can

can

going to
it, is

am

lor

systems

information

as

routine-work content

Tr,e

form.

being superseded.

are

acceptability of the products it

produces.
This question is ex¬
tremely difficult to answer for a
completely or nearly completely
automatic system. Careful obser¬

was
the
mechanization
of
(1) The production of articles
vations of what happens as we ap¬
repetitive tasks which involve the of manufacture including the re¬
lated elements of raw materials, proach complete, automation will
production of large numbers of
be necessary to throw light .on the
pieces. This development is con¬ facilities and labor.
matter.
tinuing at the present time and
(2) The transport of raw ma¬
rt an
ever
increasing rate, to terials, partially manufactured ar¬
On looking into the present sta¬
involve more and more complex
ticles, and completed articles tus of automation in American in¬
tasks.
through marketing channels to the dustry, we find that we are still
Production is carried out by customer.
far from the automatic factory and

tion

machines in which there are con¬
trols
<

i

direct

to

each

performance
in the right

interval.
will

controls

often

Very
detect

a

gross

these
mal-

'

the machines, but

functioning of

they rarely do more than signal
operator that something is
wrong.
In the next phase of this
evolution,
sensing
devices ;are

the

i

dded

control the machines

to

com¬

petitive

situation

that there

com¬

(3) The marketing of the
pleted articles, reflecting the

the degrees of automation present

customer

and

the. right acceptance.

during

and

.sequence

time

the

operation

as

determined by the progress of the

(4)

financing,

beginning
with raw materials, facilities, and
labor, and ending with billing and
collecting fropn the customer.
We
tion

enter

the

when

two

or

in

begin

we

a

automa¬

include

to

steps of this

more

process

of

area

system

whole

controlled

so

begins to take

programmed in the electronic
sense
that each step reacts with

control

and

itself.

work

Thus, :the

machine

over some of the
functions normally pro¬

"

vided by human operators.
at this
*

duced, that

controls

many

are

intro¬

like to introduce

the word "automation."
there

is

today

no

However,
clear dividing

back

control

informa¬

tion to each other step.

,

line

between

mechanization

Much that I

automation.

and

have

to

will

say

concern

manufacturing
the gray area

cause

I

we

should

are

today

like

to

in this

area.

point out that

the

concept of machines incorpo¬
rating some of the control func¬
tions

previously provided by
operators is more than
an
evolutionary process in

distant
the

at

pletely

future

take

and

concept of

automatic

present

automation
a

I

com¬

leads

to

the

This

factory.
of

idea

a

very

black box into which flow

a

large
great

many

varieties of

and

large volume of automati¬

a

raw

materials

materials

and

the

data

are

raw

proc¬

"untouched by human
hands," so that the right amounts
of the right products are distrib¬
uted to the right places at the

essed,

right times.
be

many

However, there will
human workers in this

address

by

development.
Dr.

Centennial

Engstrom

at

An
the

Symposium on Modern Enr'nw'n?.
University of
Pennsylvania,
Philadelphia, Pa.




black

box,

have

industrial

Electronic

For

in¬

bulk materials that can be handled
in

a

have
as

continuous
a

stream

already

high degree of automation

compared

to

those where

the

product must be manufactured or
processed unit by unit.
The pe¬
troleum industry is an example
of

an

components

the
then

are

threaded
a

through holes in such
printed-circuit board to make
with

contact

the

All of

strips.

proper

these

then

be

tion.

Because the board

in

lar

soldered

copper

contacts

by

one

can

opera¬

is regu¬

shape and puts all of the
into

conductors

electronics
vided for

one

industry
first

the

is

plane,
thus

the
pro¬

the I

time with

of

handling its product in
machinery.
Further¬
Industry
more,
that machinery has suf- i;
ficient simplicity to satisfy eco¬
In the electronics industry we*
nomic requirements.
The devel¬
find a two-sided interest in auto¬
of machines, somewhat
mation. In the first place, much- opment
automatic equipment is electroni¬ like stapling machines, for me¬
cally controlled. Electronics pro¬ chanically inserting the compo- J.
into
the
vides
the
means
of
printed-circuit;
replacing • nents
has
proceeded
rapidly.
human judgment and * control. It boards
RCA has been a pioneer in
provides the sensing devices, the"
thisj
means of
'ommunication, and the area and has already produced j
well
over
two
million
printed-;
computing devices.
The more
'

•

''

'

i

Automation

the

complex

,'r

.

* means

in the Electronics

the

task,

larger

automatic

circuit

isr

likely to be the share of the elec¬
tronic equipment in performing it."

which

in

boards

at

least

of the components were

some

serted

mechanically.*

The

in¬

elec¬

tronics industry is introducing

this
provides the pos¬
sibility of introducing automation and other forms of mechanization
as fast as it is able to develop the
into the small production run.
A4
typical example is the magnetic- necessary machines and econom¬
tape-controlled milling machine, ically justify their use.
Electronics also

which

used

be

can

to

out

turn

In

order to avoid too great dis¬

soecial wing sections of airplanes.

parity

One

tom-made

hardly anticipate that a
multi-engine bomber will

can

large
ever

be manufactured

on

auto¬

an

matic

production line.

there

are

being

able to produce a compli¬
shape, used in the bomber,

cated

However,
advantages in

obvious

and

between

the

and

the

tion

is

This aspect of automation

will

undoubtedly become a major
responsibility of electronics manu¬
facturers.

used for the produc¬

processes are

tion

of

electronic

some cases, a

anization
other

place, mechanized
equipment.

In

is

already
theories

in
of

is

tion

the

cases,

manu¬

extremely short
problem of mechaniza¬
entirely

an

different one.

hoped that the standardiza¬
circuits

of

modular

the

and

use

of

design, along with gen¬

will
the
special

mechanization,

proviue considerable saving in
cost

of

producing

products.

these

-I;;/;?

/?'

/

Automation and the Armed

use.
In
modular

being developed which
may introduce true automation to
short-run products. The electrondesign

It

high degree cf mech¬

cases,

is

runs are

eral-purpose

In the second

which

that

by

these

In

ment.

has

devices.

cost of cus¬
equipment

mechanical
means, electronics manufacturers
are looking for ways to mechanize
their production of special equip¬
facturing

large stake in data-handling

of

cost

mass-produced

by means of numerical program¬
ming.
The
electronics
industry
a

the

electronic

Services
I

are

do

think

not

that

I

should

leave this discussion of the status
of automation without mentioning

tube manufacturers provide a good* automation in the armed services. '
This is an area where economic

example of thedirst situation. This

industry

natural develop¬
highly mechanized •
light-bulb industry. As a result,::
the pumping, processing, and seal¬
ing of the tubes have always been?
almost
entirely done automatic
calJy. It is only recently, however,was

a

ment from the

that
oned
of

machines

industry dealing with bulk- Even

mechanize

to

the

have

elements

in

their

been

the

within
most

devel-

considerations

are

not

the

basic

The speeds- of
our air fighters and the bombers;
have
become
so
great that the
controlling

ones.

requirements
far

exceed

humans.

As

for their operation;
capabilities ;of
a
result, these air¬

the

planes are very advanced exam¬

One of these

asserrb'y

ples of automation.

the

planes will search out, track,.and
shoot down a moving target with¬

tube.

advanced

involving

a

stages, these processes have littler out the pilot doing much more
in the way of automation in they than monitoring the operation and

processes

may

narrow

products.

Here,

entire

refineries

multitude of chemical
be controlled con¬
tinuously and automatically and
the
type
of
product
may
be
changed « within
certain,
limits

In

sense.

the

production of television

making'what might be called the
/

long-range decisions.
.'

In

the

area

of

air

defense,;the

encounter

the

look

just

♦An

industries.

provides

copper

electrical connections to be made.

it

a

human

our

great differences in

are

different

i-V

laminate

remaining
-

however, t^at sucn ma¬
chines will be used to provide in¬

' ' ""/'•/ V

technique.

a

be the technical maintenance men

into

our

th^se two concepts, be- cally handled data. Both the

'

large-scale

ciear,

X

by the
printed-cir-

the

of

who will keep the

now

*

•activities falling in
between

beginning to place
electronic
data-handling equipment. To date,
however, only a relatively small
number of these equipments have

is

procedure

modified

This
technique
consisting of an
insulating layer > coated with a ;
copper
sheet
which
is
etched I
through in such a way that the

are

for

orders

This

been

processing the product. Sohie will

project
regarding

us

thinking:

*

*

and

com¬

together,

picture tubes, there is also rii high'
scheduling of the instrumentali¬
degree of mechanization. The tube
ties from early warning to rec¬
envelope making is a highly mech¬
exist in other chemical industries,
ognition as an enemy target, to/anized.- art.
The
components'/ofand in some food industries.
In
the electron gun of the tub? are "lock-on'i of the target in the de--,
the processes used in these indus¬
fense area, to alerting of fighter,;
often assembled manually. How--'
tries, continuous sensing and test¬
missile launcher! rocket launcher
ever/the mounting cf the gun ining devices provide the informa¬
the tube, the laying down of a or.gun, to the direction and con¬
tion which, after some calculation
trol of the weapons, and to the
fluorescent screen^ the aluminizor
'manipulation
by
automatic
final closing on thq target, these
ing of that screen, the pumping,
means, is used to control valves,!
the heat treating, and the sealing all become matters of automatic
temperatures,
or
other
process
of the tube can be done without or semi-automatic environments.
These controls can be
variables.
manual handling.
In some cases,
Here
also
has
been
fertile
adjusted either manually or auto¬
each of these operations is per¬
matically, through predetermined
formed automatically but there is ground for the development and
programs, to vary the nature or
utilization
of
automation.
manual handling of tubes between the
the character of the product.
These are but two examples of
equipments for each operation.
In the industries dealing with
In the production of television how automation serves the mili¬
unit products, automation is not
and radio receivers, where large
tary. They can be taken as indica¬
nearly as far developed. However,
production runs of complicated

Let

point, where such sensing

feedback

and

It is

or

feeds

in

stance, industries which deal with

The

fices

produced.
now

cuit

mechanization for of¬

in

terested

them

soldering tne individual joints

uses

much in¬

are

tegrated data processing within a
change in the product line. Most plant and to control some aspects
of the functions of present day of
production and distribution in
management will be present in accordance
with
the
processed
this future setting but in modified data.

trol functions of humans,

about

Industrial leaders

individual

and

joining

development

modify existing automatic ma¬
for making those, new
products. There will be top-man¬
agement men who will survey the been installed.
Almost without
behavior of the machines and the exception, these have been applied
electronically processed manufac¬ to routine clerical operations. It

making and con¬
with the
of human limita¬

understanding

automatic machinery

chinery

posed by the capabilities of hu¬
and animals. Now it is some

'

and

has

markets. There will

new

ponents,

cally any plant producing a unit
product. The amount of automa¬
tion is still relatively small.

cope

Early
techniques
involved
of the individual

conductors

with

to

mechanization.

placing

proper

thus

accordance

in

of

production

anization will be found in practi¬

or

mans

serve

growth

the programs

decisions

design

removal
limitations of power im¬

the

of

start

which

definition

simple

a

would

if

all famil¬

are

iar with the very large automatic

product.

and stylists who will
develop new procucts and who,
when necessary, will develop and

trial Revolution was the

it

mechanizationYou

be engineers

ingredient of the, Indus¬

essential

things

many

Therefore,

people.

„

care

witn changing

it replaces human

j

take

management

decision-making functions, and frees man's
work from routine, while providing increased scope for the
exercise of man's highest skills.
Says it is a step toward
increased productivity required by our expanding economy,
and thus will lead to higher living standards.

|

changing

instead will service

of

\

to

There machines for fabricating cf auto¬
will be proauction men who will mobile components and for ma¬
no longer schedule production of
chining automobile-engine cylin¬
the parts of a given product but der b.ocks. Some degree of mech¬

Radio Corporation of America

\

machines

new

the

of

ENGSTROM*

By DR. ELMER W.

f~;

p

Thursday, December 22,1955

(2758)

no

even

direct

though they will
connection

machines

with

oper¬

when

is

desired.

in

these
a

Similar

situations

industries

very

that

we

high degree of

equipment
has

are

recently

encountered, there

been

a

very

rapid

tion

and

promise

rvf!

for constantly
nn^Amofmn

Volume 182

Number 5492

.

.

The Commercial and Financial Chronicle

.

(2759)

19

\

the practice
defense.

of

and

of

of

the

the

introduction

automation

more

of

as

continues to expand.
our

labor

our

and

economy

In fact, with

growing faster than

economy

force,

said

be

more

our

employ- so as to minimize the growth probunemlems as these appear.

and

automation

or

automation

ap-

to be necessary if we wish
keep improving our standard
of living.
On the other hand, I
think it is extremely important
to realize that, while automation

the

further

in the British economic outlook.

automation

as

The light of

and evolves.

gresses

wisdom

to

expand-

an

here

literal,

will

physical

quanta.

But

in

come

sense

small

in

comes

who for

one

as

over

30 years has been engaged in

search,

in

engineering

re-

in

and

w™?' ,'ll "peering

an«

>"

nl ,i™,JLt™ FIT'!!?; ^ l.P™F,C.,S 1 Ltf:SealCF
only significant controlling factor and engineering into public use,
in

the

expsnsion,

realistic
u

ol

must

the

of

the

be

that

we

recognize

outlook

ure

and

and

the

consumers

business

population

will

continue to be important in
determining the future health of

our

High

economy.

by

itself
when the
ested in
The

is

consumer

inter-

not

buying.
rate

into

move

productivity
a
liability

become

can

which

this

new

we

shall

of

auto-

era

be determined not

so

much

by the state of technology
by any limitation of engineer-

or

ing

the pnysical sciences

or

will

and by our ability

process

to understand this economics.
do

be

to

need

nomics

of

sure

the

of

it

as

the

eco-

and facilities, of the economies of

the
of

of labor, of the economics

use

the

marketing

and of

process,

the economics of the management
of the enterprise.
As I see the

future, it is these factors, coupled
of course with creative planning
and

which

engineering,

fine the
rate of

areas

will

de-

for automation, the

growth, and the extent of

I

use-

I

the

possible

recognize

Since

we

in

are

which

be

continuing expansion

that
inai

that

todav
xoaay

bv
oy

upon

to

seem

the
tne

the
rric

bevond
oeyona

grow
grow

can

we
wc

limits

for its
greater

be

imposed
total
toiai

estimated
esumaiea

of
oi

the labor force that will be avail-

be

treated

need

system

the

that

kind

fhe

product
of

economy

man

beginning

are

we

call automation.

industrial

of

to

We need the in—

creased

productivity which automation promises so that all of us
have

may

while
about

0£

use

who

men

also

create

of managers of

group

patterns

facility

requiring
cedures

will

a new

the

be

product, then an employment
mieht go
might so hand-m-hand
hand-in-hand
However, automation af-

the

basically

industrial

whole

the

of

effect on
in
a
fundamental way on the qualifications of the people to be emoyedployed.
With

Its

process.

employment

will

depend

automation,

longer have large
pie who

groups

machine.

pointed out earlier,
many persons

to

build,

and

to

call

to

make

for

shall

we

of

no

peo-

themselves part of

are

production

Instead,

a

as

will have
employed to design,
service, to control,
we

This

will

and

decisions.

greater

for

skills

training and education. It
a general upgrading of
personnel.
Assuredly,
this
will
more

will

mean

mean

next

ge n^wautomationtafficof

of

Automation

must

nroduction

toward

directed
was

as

for +be mechanization

case

AutaXn

^anXture
t

be

not

a

method

is

working

a

of
a

ar_

productive process is respon-

?

of thp market

dpmand«?

fri

i Ue.deJia d,s 0
the rate of

j

e ^

,

production of goods

and

f|1]Pt„atec arenrdinglv

With auto-

continual

adjustment

facility-the

The

hundreds.

or

kent

to

capital investment—must be kept
working at a steady rate if appropriate return is to result from the
investment. As a result, both capjtal and labor must be kept con-

conflicting

the

pro-

trends

in

We

than

con-

a

justed to

constant or at least a

a

slowly changing flow of goods and
services, instead of production be-

adjusted to sales, I do not
propose to indicate just how this
may
be done or just how one
might best achieve such a changeover
in
principle of operation.
Rather I point to this reversal to
ing

show the need for
ative

a

new

and

ere-

management.

and

.

.

th

ber,

have

in

deflationary

of

a

q£ greater

monetary

has

The in-

electronic

of

the

evo-

a

has

the

made

in

worker

Mech-

part

a

tionary

of

primarily by economic factors inthe

volvim?

business

It

situation

anoroadi

which

the

of

state

we

only
en-

now

factors.

At

the

a

fate

:a^e many
labor

g

Automation will necessiadiustments

manv

and

increase

e

s Pf

...

,

but

management

thp

both

bv

will

of full

assurance

to an expanding
higher standard of

a way

to

a

itself

all.

Kigginson to Be

moment

to be actual unemployment to
,

workers

and

re-

fherphv

to

1h

.

t

forp;nw

■

nn

iorcing

•

up

warjPo

wages

For

,t has been attracting

s

labor from other industries which

unable

are

If

to

number

a

should

return

to

of

become

have

may

to

high

such

pay

those

these
unem-

choice

no

industries

which, owing to scarcity of labor,
now

forced

to

their

raise

their prices.

and

automobiles in AusCommonwealth
R^nFose Jll®we ,
rh
.
Fy countries. Mr. Butler's restrictions
Chairman ot tne bo
Kn'nrri on instalment credits are primarily
Cottmg, Cha r
aimed at preventing the autoa"
.r, '
\
vroriorini
w
IT01311,6 lndHstry ir.on? ??
,g 111
J viJt. Proci'
domestic market the large
^ f0effnra Acclltnnf ^pprptarv" nun?bers 0 U1ca^s wblch they are
Rrnnks
member of the n°
ger
overseas.
£ Vnri7 S Fxphangp
The success of this policy would
^mp.0ld;s

n

'

tralia

other

and

..

w

2^,

A

c

k'

T

j

importers to buy
which ap-

the

goods

peared in the November Customs

Summer

and

early

Autumn

are

replenishing these balances,
And foreign importers of British
goods who had deferred their
payments in the hope of benefiting by a depreciation of sterling
are now making these deferred
payments. All this is supporting
now

,

in the meantime. This
denend

a

ana

p

.

British

for

the

on

again
nf

ci,ppp«

will
Mr

t

a

u-

*

development

a

u

which

might

JnSy ST) 3

but

,

dollars

and

°nJan. 1 Lee^ Higgmson CorFrom this point of yiew Mr
poratl<^;
Butler's monetary policy is as?ork .~ll.y' tTu iS iJ qtnr k ?isted by the restrictions on the
hP

for

need

-5
workers ana tnereoy to depend on me success oi ivir.
mitigate the scarcity of workers Butler's disinflationary measures,

wages

tn

in

provWed'L? «Je

workers

un ce

well

covered

were

ma^Vave

ployed, they

p

dollars

advance, for fear of a depreciation
of sterling. As a result there is no

influence

wages.

Exchange,

during August and Septembig short position developed
sterling. Seasonal requirements
a

f.^n. ® a<r ?ev(:d by sim-

»ll

Lee

its

ply f?rcin§ industries to cut out cannot be expected to continue
overtime> so much the better. But much longer. Once it has spent
in some industries, at any rate, its force, the effect of the adverse

use

and to happier living for

living,

after

|° ieduce employment. If the sterling rate.
But this favorable

y

.

vision for obtaining the increased

expand.

de-

°f writing, it is highly uncertain
^|ether the Government will be
~,e
*?rrj
rise in prices.
Everybody realizes, but few
p,5ople dare to„state in public, that
P1®. ®Hccess ?f. Mr\ Butlers dis^I? l1^lor?ai^ dllve depends on his
,

entire

the

is

can

has

clared

resnects

some

of

during
improvement

payments

determined to enforce. Business Returns. Moreover, foreign banks
conditions will largely depend on which reduced their sterling balthe Government's ability to neu- ances below the level of their
tialize the effects of basic infla- normal requirements during the

skill

anization

Govern-

ment

Paul Einzig

new

dimension. Mechanization replaced
human

which

policy

control

this

greatly accelerated

the

conflict

deterioration

that

but

also

finuing evolution in the direction
mechanization

of

the

On

to

in October. The apparent contra¬
diction is explained by the fact

acute

we

This
be

in

e

v

close

trend.

seems

marked

balance

inflation

are

wili in the future have to be ad-

a

Britain

troduction

this

November

progress.

tinuously busy,
being true, the table will
turned.
Marketing and sales

the

firm

a

it

eoods

il

more

of

with

Conclusion
Automation is

face

to

appears

with

year

are

various

of

absorb

to

as

year,

this flow

flow

mdustry as we have it t a y, omj is to to t

the

unions

accentuate

peril,

Sterling

a

mean

the
fecials, products and marketing, machine. Automation reverses this
Here in the work of the adminis- process and frees man's work from
trators of busines<
will be the routine
It provides
increased
real revolution of automation. To scope for
the exercise of man's
be efficient and effective, systems, highest
skills.
Automation
in0f automation
must be directed volves the industrial system as a
f0ward
an
integrated
business, whole. Its development is limited
ma-

to

spiral.

tomorrow's

the

There

3 tt?Sntributions^each"

nrohlem
problem

fects

during

0f goods

if an advanced way ofbasically worker some cases in ratios ottens mation is
automation were making and in in an enterprise wilTrise, economy,

with it.

will

merchandising

new

so

just
a

This

decision-making functions.

directors

I

we

trade

interest

he is more concerned with making
these
restrictions
effective
to

trends

ness

people

type,

as

able tomorrow.
.

the

and

continuous

neariv

but

determine

it must be kept continu-

encaced

ouslv

will

large

a

ap-

the

says

their

the current wages

LONDON, Eng. — At the
proaching turn of the year

by machine skill in
repetitive tasks. Automation does
more than this. It replaces human

]abor, it will,

outlined

have

bringing

broader

and

manufactured
use

lution. but it has also added

is

automation

new

fhe

richer life.

a

and

to

not

(4) Automation may make an become increasingly conscious of check inflation. Today's peril is
industrial unit more flexible as to the difficulty of forecasting busi- naturally more important than

research

we

should realize that it is

integrated

an

as

Finds stability of the Sterling

exchange rate only temporary,

as

system,

the fruits of ever acceleratin the future, then

reap

inflationary factors, Dr. Einzig reviews the uncertainties

working arrangement of the whole
business,
where
the
enterprise
must

who

improved through research
and if we are to

basic

method for doing business—as a

disturb-

underway

now

a

the

be avoided by careful planning. If our standard of living is
to

automation must be considered

that

may

expanding

an

depends

oi

By PAUL EINZIG

(3) To be effective and efficient,

it.

for

need

to labor but I feel that these

ances

iugf

economy

Qdvsnts^es

the

We

materials

of

use

the

see

and

of the

by the economics

be

whole

clesily

automation

ing

at

mation will

I

to

itself pro-

steps forward, just as light in the

means

Prospects

Contending business conditions in Britain in 1956 will largely
depend on the Government's ability to neutralize the effects of

of auto-

processes

to

a

(2) The rate of the movement

automation and its effective
mation
expand
and come into use in industry and commerce will
general use. I do not possess the be determined by the economics
wisdom to illuminate the subject of the enterprise as a whole and
very far into the future.
Our il- of its parts under the impact of
lumination will have to penetrate automation.
as

pears

provides

Britain's 1956 Business

and

ployment. Much more is likely to

Future?

Returning , to the commercial
field, it is certain that we will
see

automation

about
ment

#

What

warfare

Fosfer' not be without its dangers. The

™L

?

0TVe

"fg10"

pp.^Lneesfrom

Portland

abstain

g

in

raising prices

during the next six months. Other
industries are likely to follow this
example, so that quite conceivably
the rise in prices may come to a
halt or at any rate it may slow
down considerably during the first
half of 1956 in spite of the upa short
period industry can afford to pay
higher
wages
without
raising
prices< There has been in 1955 an
ampie profit margin which will

ward trend of wages> For

be available for that purpose, if
business firms pursue a conservative dividend policy. In adopting

this line, British industries re¬
sp0nd to Mr. Butler's exhortations

keep

to

dividends

down

and

profits.
it remains to be seen whether
this attitude will be appreciated
and imitated by the trade unions,

™^t of the future will Francis L mSiAson Schuyle^ declin? in -5e demand.for
management ot the iutme will h> rancis L. Migginson, &cnuyier coincldes with an expansion of the Assuming that the example of the
work Wlth ,macb
Pfu d„or
^%5 Ans?pl! SLu ctli industry's capacity. A number of Portland Cement Group will be
processes
involved, in order to,"?
da a onrrJ1be
k" f f
R
Mprrpll
Tnhn A
new factories> or extensions of followed by a large number of inlighten transitional burdens and Jionsof its business This willbe ford,^Jr.,
existing factories, will be ready dustries, this would materially
insure maximum mutual gains.
e direct resuR of the use of con- Norman and A. Sumnei Gambee, t
begin production next year. If Weaken
insure maximum mutual sains
the
moral
claim
for

re-alignment of personnel.

Man-

agement and labor must tackle
reasonableness the growth

with

Tr

Modern

ber

of

tonal

gtantly improving electronic busi-

Industry

this

for Septemcarried an edi-

year

entitled

Common Sense.
nananr*

paragraph

Automation and
I shall

^

fmm

from

quote one

•

th,-

oH,tnr,ai.

this

editorial:

"Men who labor for

living in
mine, mill, and factory have always feared the machine as a dea

vice

which may take away drudg-

ery,

and bread, too.

But it hasn t

ness

from

as a

machines.
the

character of

system that feeds back data

information to control its operations and to permit effective

management

tion

The movement to automais

natural

a

power

engine

inventions

lowed.

No

that

craftsman

tors which

Much

has

already

day

tomation

been




said

under

the

of our

___

_

are

.

so

industry into

au-

deep

rooted

and

movement

move

would throw aside his power tools

artistig
pleasure of making a wagon Wheel
or spinning wheel."

has

bec0me

Assistant

and

seph M Cronin Simon P. Larson,
Donald C. McCotter and Stuart L.

Southgate, Assistant Secretaries.

will

„

Pr<>iouna tnat inis movement win
continue even though the changes
involved

create

is need for

a

problems.

There

clear understanding

begin production, the

total output of cars

credit

ment

and

would increase
the demand, which
curtailed by instal-

restrictions

at

home

Beyond doubt, the motor industry has become a vulnerable spot

^ t"be BdtiTh Vonom>7 Foriu:
nately

for

Britain

in

spite

BEVERLY HILLS,

Calif.—Har-

of

expansion of the motor
industry, it does not occupy such
an important position as it does in
the United States. A recession in
the automobile trade
in Britain
postwar

need

not

develop

into

a

Sthpr w^

nation-

Pe

for

unabated

of

higher
in

jn

any

rise

Pot

exactly

the

wages

spiral. If

cQme

affiiiated

Weston

Drive.

&

with

Daniel

D.

Co.,440 South Beverly

to remove

Mr>
or

Butler

may

have

mitigate his instal-

ment credit restrictions
in 1956. At the moment,

sometime
however,

so,

the tern-

stoppage of price rises may
lead to lasting stability. If

well

not,

the

of

payments is

deteriorate

further, be-

balance

liable

to

cause,

in the absence oi price in-

of
increase and

the purchasing power

creases,

an even larger
output will be

thig

But

porary

is allowed to proceed too far To
avQid

encouraging.

the
unions may have
fearned in the meanwhile that it is
no" to'their Tnterest"to accentuate

G. Rand, Jack

Sonnen-

continued

of

possibly

higher

gtein hgve be^

the

the absence
the cost of living,

wide business recession, unless it

^ David D

resoect

when pres-

wages

spite

old W. Bradford, Bert S. Hodges,

Bernard

this

Tn

experience of 1953-54

g

import restrictions abroad.

circumstances

(Special to The Financial Chronicle)

fol-

for the strictly amateur or

beyond

President, Assistant Secretary and
Assistant Treasurer; Donald B.
Fleming and William ^ Lecraw,

to increase productivity. The fac-

have
our

far

Joins Daniel Weston

the

in

th

and the growing need

all

and

one

fhoi5d

Vice-President; Henry S. Rogerson,
Vice-President and Secretary; William H. Owen, Jr., Vice-

Vice-Presidents

decisions,

Four Concepts
(1)

dark

steam

automation

and

K'SeSn^iS: ^hel°rS
promises made about the technology
Watt

It will also result

will

wages

domestic

proportion of the
absorbed

by the

market,

«mFRRY

CHRISTMAS" 1

20

(2760)

The Commercial and Financial Chronicle

1

,

Social Welfare Philosophy
By HON. MARION B. FOLSOM*

Ei

than

]

in

also

insurance

plans, and

line

with

the

mental

health

reinsurance,

or

form of

some

fact

benefits

other methods of pooling

experience a sense of
satisfaction in reviewing the status
of
life
insurance
and
planning
future

which

activities

be

will

have increased
from

uct

less

$391

over

population

useful to your

than

business

oppor¬

has

and

this

of

satisfaction

properly

can

eight

This

Nation.

the

Part

period

marked

also

modern

that

the

insurance.

oldest

company

Presbyterian

and

expanding

na-

Philadelphia,
1717.

And

life

called

the

business. Nev¬
before have

er

American

the

people owned
so

cies

I

like

should

kinship with

de¬

a

protection.

financial

of

had

and

high

so

gree

poli¬

many

to

the progress of life insurance. The
fact is that fate
has been very

dogged about keeping
the

insurance

took

short

a

hand in

my

business.

When

in

course

I

insurance

Harvard

at

teacher

might
work

Business School, my
generously suggested
I
have talents for actuarial

Although I did
suggestion, some
of my richest experiences, within
industry and government, have
as

career.

a

that

follow

not

been in the insurance field.
15

Some

after

Harvard, I found
myself developing a group life
insurance, retirement and disabil¬
years

ity plan for employees of the com¬
pany
where I was working.
I
thought I would have little to do
insurance

with
Under

I

became

Secretary of the Treasury

three

several

impressed by the

insurance
ernment

But

ago.

years

became

us

when

example

the

setting

was

of

poor

govern-

as

an

em¬

ployer. So the Federal employees
group life insurance plan was de¬
veloped—the largest policy ever
written.
Ninety-five percent of
Federal

workers

—

than

more

value

of $10 billion.
I want to
compliment your .industry on its
splendid cooperation in develop¬
ing this plan, which provides lowIn

protection to
ihis example

think,

so many

people.

of progress, I
find good portents

we may

for the future.

Many

.

can

complimentary

things

and should be said about the

development of the American life
insurance
all-time

business

peak.

to

its

current

Overriding all

of

them, I think, has been the ability
of the business to adapt to—and
the needs

serve

and economic

No

has

—

our

social

growth and change.

major

country in history
undergone the growth and

change

which

in

America

In

this

from

in

the

taken

we

an

its

have

period

basis to
all

of

past

haye

essentially

place

century.
shifted

agricultural

industrial basis—with
economic
and
social ad¬
an

justments.

We

have

♦An

to over
address

by

166 million.

in

We

Folsom at the
annual
meeting
of
Life Insurance
Association of America, New York City,
Dec. 14, 1953.
]
Mr.
the




sure

Ministers'

of

fund

was
organized
in
incidentally, it was

"Fund

Uses"

for Pious

basis of

modern life insurance

our

laid

was

only
several

by

But the real

will agree.

you

about

century

a

developed

companies which
effective
plans
for

sound

reasonably

ago

and

Over the past

for

rapid

of

life

our

has

trend.

United

has

It

up¬

an

with

grown

the ad¬

and

economy

Nearly 100 years
private life insurance

our

capita

is

the

of science.

ago,

it

in

always shown

money

vance

per

years,

depression, the amount

insurance

States
ward

100

except
periods of marked

brief

two

economic

only $5.47.

was

Today

.lite

pioneered

insurance

in

Benefits

Your

industry also led

the

You have adapted
insurance policies and sales tech¬
niques to meet changing condi¬

your progress.

tions

and

often

into

venture

needs;

you

shown

initiative,
imagination, a will

terprise,
some

changing

new

ground

en¬

to

at

even

to

of the people and

and

lives

of

stand

have

been
spared.
We
without doubt, on the

now,

threshold

of

solving

great

more

mysteries of disease. So the

pos¬

sibilities for further advances

the

and

great,

ings, and the
made

it

generally,

economy

clear

that

the

Government must help

Federal

provide

a

forward

in

employment, and
general.
And we

population,
life

remember there is

should

social

the

to

in

security

limit

a

taxes

the

be willing to pay to
the program in all the
ahead. This Administration

people

way

support
years

will follow
social

policy of keeping the

a

security

system

as

sound

as

large

larger than their entire

or

income.

annual

For

million

ope

families, the costs of medical

half

were

income.

American
to

families

bill of

increased

has

billion

S10

than

more

a

year

terms of statistics—but

instead, in

terms of the worker whose savings

Plans

pendence and is forced to turn to

Along with the growth and im¬

of

provement

our

social security

system, one of the heartening de¬
velopments has been the expan¬
sion of private company pension
plans. In 1935, the year the Social
Security Act was enacted, there
were
only about
1,000
private
plans in existence with a coverage
of only about 2,600,000 employees.

Today there are over 18,000 such
plans with a coverage of about
13 million employees. Almost one

are

public welfare.

as

well

economic terms, we must

as

pro¬

vide

better

In human

protection

for

the

American people against the costs
of medical care.
I

that

convinced

am

health

insurance

practical

is

of

means

voluntary
sound

a

and

increasing

se¬

curity against medical costs. The
nation has seen a remarkable
growth in private health insurance
in

recent

that

years.
But the truth is
have hardly scratched the

we

surface.

There

remarkable

are

opportunities for the future that
should bestir

four years ago.

many as

terprise gnd ingenuity.

pur

all.

us

While life insurance

tection.

We

could

and

more

secure

fu¬

developed the Fed¬
system of old age and sur¬
vivors
insurance,
one
of
our
strongest bulwarks today "against
so

human
there

proved
we

many

And

we

eral

distress.

was

some

of your

At'

quite
of it

industry.

a

the

little

outset

opposi¬

from

members

Fears

were

ex¬

.

Even with

advances, many millions of
still

a

lack

need

and

im¬

ling

was a

fledg¬

century ago, and retire¬

one

ment insurance began to +ake hold

involves

a

One

a

well, the estab¬
sound pension plan
so

number of complex is¬

of

with

the

problems asso¬
industrial pension

plans is the period of service, re¬
quired before an1 employee builds

the

whole

have

built

more

a

permanent

point of view of the economy

three in the entire population are
covered

witji

insurance
number

;

of

some form

rh the past 14

of health

with

persons

the
hospi¬

years,

is

insurance I

enthusiasm and energy,
of
health
in¬
must
be
extended
to

j

reasonable cost.

a

a

sound

add

to

a

little

provide
for

from 14 million to 102 million and

as

ance

to

cover

surgeons'

expenses

has increased from approximately
7 million to 86 million. Protection
for general

medical expenses has
expanded from 5 million persons
to

million in

47

The

10

of

measure

years.

the

problem,

however, is not what has been
comolished
be done.

And

ac-

what

but
so

remains

let

look at the

other side of the

us

same

coin.

to

De¬

spite the rapid strides, there are
still

about

with

no

65

million

form of

Americans

hospitalization in¬

to

in

is

people,

have retired.

big

a

rural

due
administrative

higher

protec¬

including
Further,

in

gap

and !

years

increased

older

who

I think;
principle
premiums i

insurance

throughout the earlier

coverage

partly

areas,

to

costs

and

the lack of

opportunity for group
believe special poli¬
special techniques can and

policies.
cies

or

should

I

be

developed to meet this

need.

Further, the degree of protec¬
tion

provided

should

be

by

the

increased.

policies

Too

often,

especially in

severe or prolonged
benefits
are
exhausted
long before major costs are met;

illness,
even

the

among

savings

thus

many are

insured, family
wiped out and

are

forced to turn to public

aid.
A

hopeful beginning has been

made

in coverage of such severe
prolonged illness—often called

or

"catastrophic" illness.
three

million

pital

services

More than

receive

persons

comprehensive

medical

hos¬

and

through

independ¬
ent, group prepayment plans. In
addition, the number of persons
with major medical expense in¬
has increased from

surance

than

two

1954

and

—

higher

million
the

more

end

of

figure

is much
great bulk

the

But

now.

the

at

few

a

hundred thousand in 1951 to

cf the

people still are unprotected
against the crushing costs of se¬
vere
or
prolonged illness.

Thus,
done.

much

The

more

needs

"deductible"

to

and

be,

"co¬

insurance" principles have already
been

applied successfully to some
insurance plans in indus¬
These principles should now

health

try.
be

applied

opment
this

widely

of

way,

catastrophic
vided

at

miums.

the

in

devel¬

plans. In
I believe,
increased
against the costs of
many

protection

new

illness

be

can

reasonable

very

pro¬
pre¬

^

Believing that voluntary health
is
a
sound
step,, in
meeting the costs of medical are,,
insurance

this Administration seeks to stim¬

ulate extension andimprovement
of this protection for the Ameri¬

people.

can

form

We

believe

some

of

reinsurance,
or -other
methods of pooling or sharing
risks, will speed this process and
help reach our goals.

talization insurance has increased

the number of persons with insur¬

plans already in effect.

lishment of

sues.

more

private retirement plans,
need
improvements in

As you know

ciated

sufficient pro¬

right to a pension
pressed that the social security under the plan. I think employ¬
system would dampen individual ees, employers, and the insurance
initiative,
and
thrift. industry should cooperate to pro¬
industry
But the fact is that since social vide better
protection for the
security was started, individuals shorter term worker. From the
on

it

these costs not in

Think of

now.

care

of their annual

more

or

The total medical

Expansion of Private Pension

possible.

as

workers

build

at

now

tion

wiped out, the family which
cannot
pay for
critical medical
needs, the man who loses inde¬

fair

health

i

I

protection

.

keeping with the changing condi¬
tions of our times, including trends
social

of

people. Many older persons, \
example, find they cannot ob- ;
tain any type of health
insurance !

ways. Further, we must speed and
to continued
improve the application of the
in social security,'
fruits of research to the daily lives
with extension of coverage to the
of people throughout the nation.
few groups who are still excluded
And we must take a dual ap¬
and other steps which can be taken
proach. While striking at the root
wisely at this time. On the other causes of
illness, we must also
hand we must always be espe¬
help ease the mounting burden
cially careful that proposals for
of the costs of medical care.
new
benefits are equitable
and
In 1953, half a million families
sound: that they are actually in
were
stricken with medical costs

look

basic foundation of protection on
which
individuals
and
families
ture.

new

surance

re¬

nation should

nat¬

our

field

The

thus

curity, we see the strength of di¬ about 30 years ago, health insur¬
ural resources, we were the last versity and versatility—first, and
ance is the newcomer in the trio.
industrial country in the world foremost, the worker's initiative, Sixteen
years ago, only about six
to feel the need for a national, foresight, and thrift; then privately
million persons had any form of
governmental
system
of insur¬ sponsored pension plans; and fi¬ prepayment protection against the
ance.
As late as the 1920's, I felt nally the national system of old- costs
of medical care.
The com¬
with many others that economic age and survivors insurance pro¬ bined efforts
jof the insurance in¬
protection
for
individuals
and tection.
dustry and organizations like Blue
families
could
be
provided
Although our strides have been Cross and Blue Shield, especially
through the efforts of employers great in the private pension field, since the end of World War II,
and workers.
The depression of there is a
crying need today for produced a dramatic change in the
the
1930's,
however,
with
its a renewed display by the insur¬ voluntary health insurance pic¬
devastating effects on jobs, sav¬ ance industry of its traditional en¬ ture. Today about two out of every

energy

with

are

improvements

In all this pattern of private and
public effort toward economic se¬

initiative

the

to

there

System of Insurance
the

to develop new and
policies, new and better
techniques—must now be carried

those

as

of

desire

better

inforce its research efforts in many

We

industry has

your

more

needs.

man

spirit

for

Coming of Governmental

Because

ing

Much suffering has been
relieved or prevented and millions
today.

their essential hu¬

meet

producing hu¬

are

creative

shown in life insurance—the will¬
ingness to venture, the ever press--

manitarian and economic rewards

a

relief

recent

20%..
think you will agree that
the,

I

the

show

basic minimum of economic
protection. If it were not for this
system today, many more persons
would be forced to turn to public
ing

to meet 100% of medical
costs—but insurance can and
should meet much more than
surance

care

dramatic dis¬

seen

coveries which

a

In

disease.

of

have

we

prevention and

cures,

treatment
years

is still in harmony with
original objective of provid¬

the

and

causes

do

confident that

million retired people now receive
benefits under such plans—twice

risks.

The

on

better research into the

and

more

today.

increased
am

analysis will

creating

developing
protection
against loss of income in old age.
Diversity and versatility, I be¬
lieve, have been the keystones of

have

I

We need

is the first line of attack.

system

industry

in

way

were

covered

firmly—and I know
agree—that medical research

you

that nine cut of

are

basis.

objective

protection when the breadwinner
died.

recom¬

disability.

believe

I

additional 10 mil¬

so

sickness and

of

a

an

still another serious gap

on

protection of many
American people. This is the field

approved

Congress

persons,

sound

public
of the need for family

awareness

vigor

with wage
costs.
So

Eisenhower

workers

and

$2,000.

over

The

tion,
grown

population from about 23 million

people

insurance

2

million altogether^—chose to come
under the plan, which has a face

cost

true

growth.

satisfactions in

your

life

is

good name for insurance, I'm

—a

some

express

It

in the United States, the

ture of the

insurance

to

100 years has
development of

of

the

life

healthy

Folsom

from less
about 65

grown

million

stem, from the

B.

working

Our

living

and

year

lion

billion to

$10

pace

and

brought to bear with renewed

through insurance benefits,
not, of course,, expect in¬

We

in the economic

They had

low.

keep

extended to

million.

to

M.

than

billion.

the insurance business should also
be

Ad¬

this

far-reaching series of
improvements.
Protection
was
last

or

national prod¬

our

to

mended

ten

You must

too

were

in
private medical care
about $2 billion—20%—is

costs,
met

imagination and energy of

The

But

program.

when

that

President

economic security of the people."

in increasing the

sound

a

is

increases

govern¬

sharing risks. Concludes "we face great needs and great
tunities

Sickness

Disability

And

ministration took office, we found

insurance companies to aid in this

urges

Indicates Administration favors

task.

billion
,

expressed that

were

pressures would increase
social security benefits all out of

plans already in effect." Upholds voluntary health

many

a

political

failed

j

a

Protection Relating to

Administration's spokesman on social welfare policies traces
the rise of social insurance in this country and indicates what
is needed for its future progress. Discusses the expansion of
private pension plans, and asserts "we need more and im¬
proved private retirement plans, and we need improvements

j

securities.

other

Fears

f

security for themselves
before.
They
have

ever

and

Secretary of Health, Education, and Welfare

Thursday, December 22,1955

.

whole, and individual security, surance. Almost half the people—
shortening of the period of serv¬ about 8,0 million—have no surgical
And more
greatly increased their savings ice required for employees to se¬ insurance protection.
accounts, cash deposits, savings cure pension rights would be de¬ than two out of three—about 120
sirable.
If the lowering of the million—have no insurance against
bonds, life insurance, health in¬
surance, home ownership, annui¬ period is made gradually, a finan¬ general medical expenses.
Of the total of more than
ties, and investments in stocks cial hardship can be avoided.
$10

economic

Eisenhower Administration's

.

.

Regardless
must
of

paying

for

for all

care

to

of

the

recognize that

method, we
the problem'
medical

adequate

the

people will yield

overnight solution.
so great they will
require a strong, continuing ef¬
fort for many years to come. And
we should recognize, I think, that
the improvement and expansion
no

The

of

easy

needs

health

itself
still

be

have

or

are

insurance
the

total

the

will

not

answer.

in
We

those
such
insurance.
The -plans you in in¬
dustry and we in. Government
have in mind, we
believe, will
who

cannot

problem

afford

to

of

buy

Volume 182

Number 5492V.

The Commercial and Financial Chronicle

.

(2761)

help lower the costs of health
insurance so that many more
low

Tit ** Mmklw<:'he so^en egg" and as such, must them right now and how it
1 Ilal miqniV
-I IlCKlC
nurtured at all cost. As an affect them, seriously, even
9
awakened

income families will be
protected.
But

all

of

need

us

to

give

«r

more'

By WILLIAM JACKMAN*

study to the problem of provid¬
ing security against the costs of
medical

of families

to

for

care

Part

.

hard

who may not

purchase

premiums

the

core

the

Investor erganizaiion official

ment, has been

—

to

answer

designed to

was

if

even

reduced.

are

of

President, Investors League, Inc.

be able

insurance

lies in progressively re¬
ducing the number of low income

from

families.

that

A

favorable

continue

can

people

the

economic

to

our

and

more

investment

economic

When; the
take

ance.

.

And
and

so

face

we

great

ereat

creasing economic security
American

people.

as

p

challenge to

romps

points

the

is

decrease of $11

further

How.

these

were

year,

both

' Capital

ma-

jor political
parties

; First, due largely to the
ministration's desire for and

will

seize upon

sible

this

the

opportu-

nity to

to

re-

developed

the lowest possible prices, and
when these policies are offered
with
drive
and
ingenuity,

Congress,

reduction

What methods

behalf.
They became willing not
only to put their own savings to

at

Of

in

William

volume.

the

enterprise and know-,
It is good business for you,

reductions were

'met

be

for

our

it

"

in

With
a»es"

the

in

full

worked

place

"marie

life

wonders

welfare

mis

and

sions

The

health

full

purpose

to
to

the
tne

aver

vmi

in

have

y"u nave

work
wotk

fieiri
iieid

of
01

meaning

and

of insurance

who

1956

business

baiting

-

and

their
•

hopes,

thp

apparent

is

Trpafsurv's

tax-take

the

over

'

is

Tt

ic

previous

ueneraiiv

with
witn

no

desperate

as

v

^

Reduce the Capital Gains Tax
There

<

is

one

important

area

relief started in the last

tax

ihe

current

?T curreai

pen-

How

; used?

fiscal

vear

,f ;J

.

not de-

answer seems

further reduce taxes?

to

job

a

iodustrv

annual

an

lion

The

create

Jobs each3

new

crystal clear. It

year

ses-

tax

ent

is

capital

on

known

; If

a

suHident
wiu

vestors

gains.

This

"Boggs'
:.7/,■

the

as

(H. R. 2815).

Bill"

number

only

in

economic

or

bust-

primarily

na„pH

Passed

in

m

congress.

bil-

thp

npxt

ine

nexl

of

in-

their
nt

the

we

teel

ax

tne

:;

;

"(Business

Washington An.lysU Mm!

m"

>

:

WASHINGTON, D. C.

—

At

"Trickle" Becomes

a

Waterfall

a

.

dinner

meeting of The '
As the benefits of the $7,400,Washington Society of Investment 000,000 "across-the-board" tax cut
Analysts held Tuesday, Dec.* 13,r of 1953 started "trickling down"
at the Occidental Restaurant in
through the
national
economy,
Washington, D. C., it was an- and much to the astonishment
nounced by the President of the
and
dismay of our. glopm and
program

Cnnioiu

Wolcnn

T

fnctor

tl-iqt

fha

Jnnr-.

Society, Nelson J. Foster, that the

doom 7

became

'4w!nlrlA

spendsters,

down"

(of

some

62

the
"trickle
mighty waters

a

jf

thinks the capital
a method of soaking the rich investor, he has been
badly misinformed. Perhaps the
,

anyone

workers

..

,

hurts

it

are

of

millions

these
home-

onlv

not

are

are

In the

industry.

in

place,

workers

not

uiny

nume

but also holders of stock
for

pmnnanies

in

.

which

crrnun

largest group wmtn 11 nuns die
the workers

first

01

■

which

thev

impor-

more

»10 longer be defended pohfl-

^"ty"

»

job
on

£

security

primarily-

depends

the willingness of investors to

t biuions of their savings into
the new jobs constantly;

heeded

by

latjon

our ever
increasing
A reduction in the

gains tax would create
important new investment incencapital

ZSSSpMAU

"i

:

£z2ttS SSTS in" SRRJSS WB BiJ
°hat
it was

this

all

And

a

from this/tax than is now the iieve they will demand the partial
case• relief
from this unwise tax, as
A* great many people fail to offered in the Boggs Bill, and urge
realize how,.this tax is affecting its passage.

previous

year

with

higher

wages.

The average earnings of fac-

too!

workers

tory
week

in

amounts

the

increase
about

to

.

$77.11

now

are

9%

up

'annuai

in

a

year.

——

wages

After.

$330.-

Paine, Webber Will Admit Fonr Partners

.

.

„

past

20%
Federal -income
tax on
rajse) the worker had
persons)
has been admitted to fall of business incentive, bringa
net wage
gain of over $260,
membership in the National Fed-, ing in its wake the soundest
era# avaiiable for savings or for coneration of Financial Analysts So- of prosperity that has been wit-'.
sumer
spending
and there were
ctejjes,
b nessed in our generation
; those
who
wanted to buy, the
The speaker of the evening was
After years of deficit finance
Wnrker'<? vote bv oromising him 1
Dr. Pierre R. Bretey, of Hayden,
ing, "emergency" spending, busi-I
$20 a year increase in i
Stone & Company, the Editor of
ness-baiting, rabble-rousing and SDending money - through a $100
"The Analysts
Journal^who gave punitive socialist: methods of a ear increase in tax exemptions.'
an excellent talk on
The Outlook
"soak-the-rich" taxation, we were
jjow did the investor share in*
for Railway Securities."
7
7 finally given last year
organization

involved.

of

^o/bUliMS

,

local

no

be

insrane7vof
ac<»rd-,^"Wd »ot 'Me apen^r « rev

fct^o,«..M;n. ™

.

longer return an adeTo do so would involve dissipating
the estate to
the extent of 25% of the "profit"
they

can

sesslon

growing

-

otherwise

an

quate yield.

epqeion

LudtoBs

Nation.

in

income

owners
,

.

,h.

higher

The present tax on capital gains

2,400,000

wise

managed by bank trustees. How
many
of them realize that one
of the reasons they can't get a

gains tax is just

make

rnllprtivplv

voices neara collectively

it

.

alone

ready to

s

retire. Why rob him of a substanUa^ portion of his life s savings
3US^ when his need is greatest?

when the market is too high and

boom

was
spending
for
new
plant
and
the
Federal
Government
tax reduction that equipment for 1956 is now esti- «a
revness
terms.
The
true
meaning gave us a boom in face of the dire
mated at over $33 bllUon,
and purpose of insurance are to predictions
of
a
few
political-ing to a survey by McGraw-Hill enue if this tax were cut in nau
protect people against want and demagogues that we were headed
Publishing Co. j
0 : -- -v
to
advance
human
aspirations, for a bust. A furtherance of the
No wonder that in spite, of our enwwagei holders_ ol Billions oi
No service could be more funda- sound method of tax reduction,:
steadily growing, population and
™
and ,emeatal to the general welfare of which
encourages investment in increasing lifespan
more people

fined

usually sells when he

booming economy is because their
trustees can't afford to sell stocks

will help keep our inrolling along on a
high plateau.

rate

of $29

over

And the same thin§ S°es for
the farmer. A farmer who has put
b*s life s work into building
something cf value, rarely sells in
order to buy a bigger farm. He
•

dustrial

At tnis rate

investment

would

this

Ugovernmird' ffi

into law,

each

for

At

worker in industry.

,

should
this
surplus
be
To reduce the national debt

or

in

workPr

.

of

sion of Congress which, if enacted

*

provide

a

npn

mrn
$2,5C0.

Next come our millions of widAnd nearly every one of our ten, ows living on income from trust
million investors has a vote.
funds provided under wills and.

,,nif,P5

that

rnneeHeri

rhnse

so-called

on

of

*

7

A

?

being inspired merely by political expediency. It is now at long.
last politically fashionable, to encourage
investment
incentive.

rate.

years

a

ana

^«'50° o£ his propertir"

investigations of
by
Congressional

treasury s tax take is.
it is generally conceded tbat it rlght time in Washington,
g°'n? t0 1SUVn 3 S'w
takes an investment of oyer $12,- con£ident that this Bill
surpius rather than a deficit, for 000 to
•

'

it

sens

rJlM
S
His
hLt" hi<?' it™?
in S L
dS

tax

^

tion of goods that was bound to 7 There is a bill before Congress,
follow.
in Committee, which, among other
As a result of this resurgence things, would cut in half the pres-

the

say

hou

new

a

now

^
Let's
^

own??

gains"

« The

will

them, in

building new and better jobs for
his fellowman, knowing that he,
too, would share in the prosperity
created by the increased produc-

broader

are

in

those

rea-

thit

now

insurance.

steps initiated

nrobablv

owner

a

for

nPi£r

in

Committees will be mistrusted

by the constructive tax-

;

tne

"capital

upon

corporations they own were making.' All of this money belonging
to .r the
investor
was
put
into

optimistic

advancing
should

and-on

vigor

in
in

scale
scale

the
'

You

iormuia

greater

wider
yvioer

of

rd.

big

was

of confidence, the annual rate of
new plant and equipment expenditures of ail industries is setting
With personal and corporate m- a new high peacetime record of
come now zooming beyond .most over $29 billion, up $3 billion

not

destined

7

insurance

pTthiTformula
put

even

cer-

has

society.

i

human

thing is

insurance

the

depend

investor

popular,

li

clipped

widows

tures of $62,400,000,000 against
government receipts of $60,000,600,000 for the 12 months period
enaing June 30>
resulting in
an estimated deficit of $2,400,000,000.

v

one

private

achieved

investment
of

to upset this boat.
Last January President Eisenhower sent to Congress a budget
estimating government expendi-

With its record of great growth
in the past
and with great needs
to

confidence

investors

willing to forego
receiving in dividends half of the
earnings after taxes which the

that

on

road to prosperity. There's no

pie, then the people will not find
necessary to
resort to broad

tain

the

million

find

''issue-hunting"

but also

work,

son now

it

still

planned

so

they put this nation well

Nation. As you in private enterprise meet the needs of the peo-

action.

they propose,
however, will
watching.
The last

careful

bear

helps people, and benefits the

Government

Jackman

tradition

Yankee

how.

it

is

process

reduction

of

they

our

replace

to

longer

in

was

Secondly^

re-

and

aspire

confidence

businessman's

ten

pose

Congress
will

home

h

•

Oui-^lecteT representatives

tax-reduction,

the Federal Government

pro-

tax

approach

Ad-

vived.

This

cost,

dividends from stocks to supplement
their
pensions
or
social

sen-

revived

large

popu-

.

mutual

people

;

of

in

shares-of
retired

old

ios^^l/^he
large'"owners
.

Millions

Investment At Work

ductions in the

accepted

i

tor tne

next session ol

are

Scattered larm

and

And who

at¬

are

of

accomplish-

ex¬

that

the

worth twice ^ cost.
its

4

companies.

own

policies

to- Main

i

billion in govern-

when

way.

shows

tractive

A■

uL

high.' ment spending.

**M
the *»«««

a

Your

obvi-

an

obvious that ments made possible?

.,,rrr*?r^p|

enterprise, yodr creative spirit.
The history of your own
industry
perience

y- y-

•*..

rapidly spreadfromWaU £nd buy 0r mere'y rent a smaller
Y
^Wt home' Due larSeJy to government
OvJtwn miS workers Panned inflation over the years,
°ver tw0 million

N

A

work?°

are too

challenge I
industry—a
initiative, your

your

Street
c

w

™w

ship has

:

it

with

iTlife™<ftS
fiL
^fri h77L
Pf pIe
Su(5en have grownTn
and ,eft them
Perhans thl h.^time

rimDortanf ner^rT^ WOrlds band has died. At this stage of
iPreeT't
•
-life, the homeowner wants to sell

__a.._i

private

a

on

tax-, of most of our children, and at,
Our
„ti
merrily ahead of all the same time, with an?,actual la tion? has"become"

It

in-

pittance

government's

In the Ameri¬

tradition, this is
you

ne«di

in

from

most
in

with

_

-

opportunities

reduction

tax

ctnrt

some

hand, and Capithpir
the other, they will be
Their

current business boom.

$100 increase in personal
Urges continuing tax reduction to conform to

fact that taxes

.

Conclusion

to

resulted

expectations it becomes
rnn

can

have

of

~+C

t

At

one

compelled to realize that the in-

-

large real gains to workers resulting

method

the

on

talism

plant and equip¬

new

nism

:

may

if it
i.<? onlv nnpp
mmo
is only once, at some time in the
future. Here's how this
happens *

becomes?
becomes

increasingly
familiar
with
the
fundamental economic differences
between
Socialism
or
Commu-

-1

incentives, including halving of capital gains levy.

more

ability to
voluntary health insur-

purchase

would

exemption.

production
flourish and in¬

will give

crease,

largely responsible for

"trickle-down"

/'

maintains 1953 lax cut, which

investment in

encourage

Mr. Jackman contrasts

this

problem

climate, in which

voting uublic
voting public

■

„

21

paying

a

Paine7Webber, Jackson & Curtis, 25 Broad Street, New York
City, will admit four new partners on Jan. 1, it was announced by
Lloyd W. Mason, managing partner of the coast-to-coast invest¬
ment banking and Stock Exchange firm.
They are: Albert P.

.

S

.

o.ur.Jirst^n-^ig-prosperity?

*

dose

"_

7
David Weisz Opens.
; Special to the fikWcMI,ch«on,cix)
-

'

of

relief

tax

openly

de-

^Signed to strengthen the America.n capitalist system by encour-r

His faith in

capitalist- system

American

our

0ff handsomely.

paid

It is esti-.'

mated. by National Securities Re-

Wetef i'^du^ng^'secuNties
gniyenter:. iJXwand^^enta'
ap-xat'nitnem vni
Sea. lion, office? I,. Snn.P JSitrSSflS
jSUglSfSrjJZUt
Julian Street.
without further debasing the pur-;

San

0f

chasing

A. A. Hans
;
a

Albert

A.

securities

Opens

is

Hans

business

at 90 John Street

*

-

We

engaging in

tional

from

$400

offices

.

r'karloc I arlrman Oniric
Lacnman Vjpens

of the dollar.

have

income

billion

an

annual

approaching

mark,

up

from

the
only

T

changed during the period, with
the

nation

enjoying the largest
of peace in the memory

fices

at

City.

Ne^Y^rk s.Tcie^y'of^e^ri't/Anal st^

New

no

unfortunately.

"gravy"

vestor will

Dec>

\t

1955.

to

now

Uncle

from

13%

paid

means

The

in

in-

8 s'

of his dividend
Sam's income tax

Davant,
Thomas

in history has

goose

that

'

■

O.
,

_

.

Peirce
_

%

office
in

and

Beverly

.

Following these admissions to the partnership, Paine, Webber will have 38 general partners and 14 limited partners. The

convincingly that the
"the

■■

Thomas

James W. Davant

Investment Manager in the Minneapolis
O. Peirce, Paine, Webber Branch Manager

Hills, Calif.

,

year

Chapelle

Sales Manager in the Boston office. Henri ce La
Chapelle, Manager of the firm's office in Los Angeles; James W.

•

no

Henri de La

Everts, Jr.,

Long Live "The Goose!"
rroven so
investor is

r

-

have to shell out

*

tVert5; jr.

.~

HlDeri

all

collector.

Perhaps

>




by

take

year before; with
of living practically un-

York

Avenue,

is

from 20% to 90%

cost

degree

Fifth

This

up

amount

billion

1954.

the

Charles R. Lachman is engaging
in a securities business from of745

$11.3 ' billion,

the
na-

$300 billion the

New York City.

.vnaries

power

now

lays

1

firm maintains 40 offices in 37 cities and holds memberships on

18 major stock and commodity exchanges in the United States
and Canada.

-J

22

The Commercial and Financial Chronicle

(2762)

The decline in farm income has
factor in
of ex¬ occurred at a time when priees
pansion is likely to slow down as of goods and services bought by
the economy is very near a state farmers have been going up.. This,
of full employment.
Our rate of of course, has accelerated the drop
growth in 1955 has been abnor¬ in the purchasing power of the
mal.
A potential danger is that farm population.
Changes in farm productivity
strong inflationary pressures will
develop since production in many are not easy to measure but avail¬
lines is approaching capacity of able data indicate that farmers
have done an exceptional job in
plant or available labor.
The danger of further inflation increasing
productivity
and
in
and the possibility of "a boom and passing on to consumers the bene¬
bust
cycle" explains the recent fits of greater efficiency. Whole¬
action taken by the Bank of Can¬ sale prices of farm products have
ada to restrict credit expansion. dropped 22% since 1951 whereas
those of manufactured products
The increase from 2V4% to 2%%
in the official "bank rate" was a have dropped only 7%.
Greater benefits might have ac¬
signal that the monetary authori¬
ties had decided it was time to crued to the general welfare of
curb the boom.
In other words, the community if a larger share

tivity will be

Balanced Economic Expansion
~
Feature of Canada's Growth

this.-

By A. C. ASIIFORTH*

President, Toronto-Dominion Bank, Canada

Picturing Canada

as in a new era of expansion, prominent
Canadian banker points to this nation's increased productivity,
but warns there must be a balanced economic growth. Says

Canada

must continue to increase its

exports of raw materials,

and not put too much stress on exports

of manufactures in
highly competitive international markets. Warns rising

the

debts

be

can

should

unstabilizing force, and holds Canadians

an

let

for domestic investment fall
entirely in the hands of foreign investors and foreign com¬
panies. Looks for as great economic expansion in Canada
not

opportunities

in next quarter century, as
For

free

nations

the

of

a

of

year

their

substantial

struggle

in

progress

toward

nobler

a

civil ization.

Not

only

can

of

resources

the

resolved and

be

then

purposes

new

b

Consumers

t

u

interna¬

a

brighter glow.

else

The

Such

have

not

dis¬

appeared

but

least

at

they

impetus
in business?

tend to defer

look less like¬

hear
not

up

major

a

C.

A.

storm.

Asnturtn

Meeting at

it

differences

tions

of

last

Geneva

While

peace.

the

the

summer

by

war

did

between

na¬

World

Western

the

and

it did create

better world atmosphere.

the

ever,

erated

the

as

Summit
much

too

failure

ference

of

cold

a

resolve

not

the Communist Bloc
a

Meeting

gen¬

enthusiasm

the

of

Foreign

just

recent

con¬

Ministers: at

gloom. The most important ac¬
complishment was recognition of
of

atomic stalemate.
nuclear

The

have

war

dwindled.

has

war

Fear

of

major

a

lessened.

people

been

of this

Continent

has

the

repetition of a major
depression such as we had in the
30s.

Eighteen
months
ago
the
prophets of gloom thought it was
on
its way.
The Canadian and
U.

S.

test

economies

and

this

withstood

the

achieve

records in economic

new

will

activity.

A

New

year

Era of Expansion

expansion

been confined to
United

and

the

During the past
Western Europe has ex¬

perienced
of

world

Canada

not

States.

two years

Most

has

striking

a

the

are

free

of

vestment—have

the

down
tario

inflation.

and

portunities
growth
of

favor¬

Many

eco¬

political problems

re¬

main to be

solved, but it is possi¬
ble today to take a more optimis¬

in
op¬

to

lag
behind
population
and

Production

On¬

an

force

labor

the
the

number of people able and willing
to work remains apparent.

walking

of

street

the

tendency for job

a

and

employment

city when I overheard a man figures tell another story—one of
to his companion that great importance to our economic
never had it so good?"
welfare.
Productivity has shown

These

six

words

oicturesque
Canadian

in

1955

saved

Some

that

borrowed

more,

and

more

in

ex-

spent

more,

invested

living of

The

level

tations.

of

Not

for

data

will
time

some

product in

be

not
a

Cana¬

Major

price

not

are

en¬

type of produc¬

same

experience
and
problems
The grain farmer in West¬

tion,
vary.

Canada has been hit the hard¬

ern

We

est.

faced

not only

with
a
huge surplus of wheat but a
declining share of the world mar¬

ket.

are

Increased

productivity
in
growing abroad, subsidiza¬
of
domestic
production of

grain
tion

wheat by some European coun¬
tries, price supports for wheat in
the United States, the farm sur¬
plus
disposal
program
of
the
United
crops

States

and

all

—

tributed to
There

of

our

large

own

these

have

wheat problem.
be little doubt but

can

one

of

the most difficult economic prob¬
lems facing Canada at the present

time.

Broader

urgent

markets

requirement.

In

are

outlook

to

priority. The prosperity of
section

of

the

is

dependent
ing solved.

Canadian

economy

the problem be¬

on

no

spending.

enjoying

prosperity,
except in the

lose

rates

the

increase

granted

this

which

we

in

A

year.

must

not

sight of is the fact that in¬

creased wage rates without great¬
er

productivity
prices.

prospects,

of wheat,

Exports of Raw Materials Will
Increase

Rising exports of
made

have

materials

raw

possible

postwar

our

development of secondary indus¬

Without these larger exports

try.

have

would

we

unable

been

to

pay

attempt to force our way
markets with fabri¬
products would be costly.
If Canada is to achieve the destiny
into

foreign

cated

most Canadians hope for

the

Because

most

than decrease. Down this path lies

the

way

and

economic

continued prosperity
security.

to

Fortunately an expanding mar¬
for the

ket

produce
seems

a

materials

cording to
dustrial

spectacular

development

resource

many

peo¬

under the impression that
Canada has become increasingly
are

dependent upon the production of

materials.

raw

This

balanced

the

of

not

one

so.

A

expansion has
postwar achieve¬

our

The

physical volume of

can

recent estimate, in¬

a

material

raw

world

free

almost

twice,

in

demand in

great

as

trade

International

will

1980

in

as

be

1950.

materials

in

is

much

in

expected to expand
the same proportion.

Debt Can Be An Unstabilizing
Force

While

Canadians

earning

are

and

saving more, they are
going deeper into debt. Con¬

more

also

credit
of

excess

outstanding is now

$2,100 million.

A dis¬

this

has been the extent to which
in consumer spend¬
ing has been financed by credit.

year

the expansion

manu¬

than half of the increase in

More
retail

the

in

sales

first

of

half

this year was

accounted for by a
rise in credit sales—more partic¬
ularly, instalment sales.

economic

been

is

Canada

and efficiently
reasonable prospect. Ac¬

cheaply

turbing feature of the boom

developments
in
the
postwar
period have been in the field of
ple

then her

industrial materials—
in which we enjoy distinct ad¬
vantages — will increase rather
of

exports

rise

the

From

sales and in

instalment

in

consumer

credit out¬

standing it is apparent that many
Canadians are buying goods and

service and finance industries have

means

similar expansion. To put
briefly, manufacturing, mining

and

the tertiary industries have
gained in importance and the
gain in manufacturing has been

higher*

greater than in mining.

Many
Canadians
are
of
the
opinion that a more rapid expan¬
sion

in

ment

the

is

like to
tured

Income; A

We

of

more

going

market.

all

manufac¬

Further

our

seg¬

would

our

products

ment of

Soft Spot

manufacturing

desirable.
see

export
Farm

expect to earn in the future. This
be an expression of confi¬
dence in the future, but we should
remember that it is possible to

may

mortgage the future too heavily.

all

service fields.

high level

export

of

largely in the trade, fi¬

and

fundamental

consumer

a

mining,

possible

wage

per¬

With most of the West¬

World

manufacturing industries.

in

it

the

The advance in productivity has

to look

reason

of our

further expansion

sumer

shown

nance

continued

curtailment in

any

This is also the surest road

toward

large

a

Balance Economic Growth

employment opportunities

occurred

national

Since

things we can do

those

on

best.

an

ments.

1954.

ing

wheat problem should have No. 1

Greater

While

disposable income continues

rise there is

ern

for

is

expansion.

activity which

cheaply and efficiently. We will
achieve greater prosperity and a
sounder economy by concentrat¬

the

1956

ap¬

made

The

the

of

economic

an

We can produce them

advantage.

con¬

our

that the wheat situation is

in

assured.

economic

results

Canada has

Problem

farmers

gaged in the

manufac¬
turing and construction industries.

available

gross

in

to

This has

and other raw ma--

In iron ore,

terials,

To

all

Since

parent

of $26 billion is

excess

impetus

-

production
services not only on the basis of
this year industrial production ran facturing
today
as
5.1% higher than in 1953 while' compared with the 1935-39 period' what they are earning today but
industrial employment was about shows a greater rate of growth also on the basis of what they
than does mining output.
Trade,
1% lower.
This trend was

activity

rapid rate of expansion.

development

an

the

in

industrial material.

ties.

During the first nine months of

dian economy regained the
ground
lost in 1954 but it has resumed

final

of

one

occurred

all expec¬

only has the

provides

decline in business

our peo¬

business

it

been

ple.
this year has exceeded

healthy

a

feel

slackening

efficient operation.

more

prices
stable, there has been a marked
gain in physical output and in the
real standard of

fewer

business

of

periodical

is

since

any

students

a

sales

previous year.
remaining relatively

With

with

employees than in 1953.

pro¬

more,

produced

was

foreign source of this basic

only

expand our manufacturing facili¬

Wheat—A

This year's larger
wide range of indus¬

a

Canada iajnot her.,

supplies.

her

re¬

marked gain.

output in

the

have

earned

consumed
than

more

of

a

tries

imported

more,

more,

apt and

an

economy;

more,

norted

are

description

Canadians
duced

for

rather

main

in

were

remark

in most countries

nomic

been

people have jobs today than
but

elsewhere for

would merely turn

ductions rather than higher wages.

been reflected in further

"Canadians

sonal

but

also

A few weeks ago I was

perity is commonplace. Standards
of living are rising.
The danger
is not deflation

previous peak, unemployment

1953

able.

the

boom. Pros¬

a

upward

objective—namely,

has remained above the 1953 level.

recovery.

nations

enjoying

its

they
spending

principal generating forces in the
economy—exports and capital in¬

a

Economic

its

its

and

there

continued

Ca¬

In 1955 economic paradox is that
while
production has surpassed

and

Consumer

medicine.

a

Productivity Has Increased

trend

has

more,

Another fear which has haunted
the

taken

throughout 1955 and the two other

danger

will always exist,
but the chances of one developing
a

right.

being given

the avoidance of further inflation.

Consumers

shortlived

and

bor¬

difficult.

more

economy is
of preventive

More

How¬

Geneva has resulted in too much

an

mild

were

replaced the cold

of

been

generally should applaud
the strong action which has been

They felt that the recession would
be

The Summit

talk

have

nadians

rising

spending when they
recession.
They did
that way last year.

behave

banks

some

productivity of
had

industries

Thursday, December 22,1955

.

for the machinery and equip¬
ment which we needed in order to

make

to

increased

manufacturing

dampen

borrowings have been made

dose

How

the

upsurge

ly to blow
into

explain

spending, a ma¬
behind the current

jor

and

The

average

become imbued.

you

to

the

of

in

increase

be

less attractive and

level of consumer

clouds

has

the

of

costly. Recently,

more

chartered

Confident

something with which the
can

this

rowing from the Bank of Canada.

tional political
horizon has a

citizen

that the

expansion

expansion

credit

This confidence in the future is

-

effect

credit

of expansion.

era*

rate

of the opinion
business

the bank rate will

the

Western World should be in for

has

The

into weapons for defense diverted

peaceful

of

some

channelled

now

the

year has been too rapid for the
long term health of the economy.

diffi¬

political

are

rate

im¬

proved
the

culties

to

their economic

status

international

If

world

including Canada, 1955 has been

they

in the past similar period.

strong

a

However,

..

into

Consumer credit is

only part of
picture. Private, munic¬

debt

the

provincial

ipal,

cent

corporation

and

a

ratio

of

have

debts

risen

steadily

as

come

in¬

national

in

re¬

If the ratio continues

years.

to rise then debt could become an

unstabilizing force.

the
While

develop¬

manufacturing indus¬

a

in

rise

a

debt

has

been

of

component

necessary

our

gains^iri business activity1 tries is desirable and national pol¬ postwar expansion, it is a matter
tic outlook of the future than at main favo r a b 1 e,
though some have -■'beert w i d eT y * dispersed icy should be directed to that end.. of concern that some types of debt
any time in a quarter of a cen¬
have risen at a more rapid rate
uncertainty exists because of infla¬
throughout the ecofiohty. If there But let us not forget that we have
tury.
national
tionary problems in Great Brit¬ was a
to
output.
If * debt'
export to be prosperous and than
significant soft spot it was
ain. Then, again, Canada's inter¬
Another depression like that of
in: agriculture. I refer not to the there isr no assurance that we can keeps rising faster than the pro¬
national ,trade. position has been
the 30s is not likely to occur. Per¬
volume of farm output — which find markets for these materials duction of goods and services, the
burden
of interest charges
in manufactured form... To export,
haps I should say it will not be improved by the decline in the was bountiful—but to the
can
diverg-'
value of the Canadian dollar in
permitted to occur. This does not
we
have tq, produce things our become too
heavy. Historically^
enee in price trends between farm
case

re¬

The1

.

that

mean

downs

we

in

will avoid ups and

business

activity—pe¬

terms

of

should

the

help

U.

us

S.

to

dollar.

meet

.

This

interna¬

adjustments such as we
experienced last year.
Adjust¬

tional competition in foreign mar¬
kets and should tend to discour¬

ments of this

age

riodical

a

dynamic

type

and

are

inherent in

expanding

econ¬

but they need not develop
into prolonged and
serious de¬
pressions if the nations of the
omy,

world make intelligent
economic

gained

knowledge

of the

use

they

have

imports.
light of the prevailing level
spending and the fa¬

vorable

outlook

tinuance of
ital

•The

Annual
of

the

address

of

General

Meeting

Mr.

Toronto-Dominion

Can., Dec. 14,

1955.




Ashforth

of

at

the

Shareholders

Bank,

Toronto

for

exports,
high level of new

investment

is

tained

the

a

high

half

of

on

mentum

of

is

and

dwellers.

trend

but

its

and

be¬

the

This

is

continu¬

disturbing.
has

suggest

will

be

prevailed

in

the

face

cap¬

sections of the economy. Farmers
received better than 12% of the

plane
1956.

current

that

main¬

sharply rising incomes in other

through
The

business

mo¬
ac¬

income

they

getting about 7%. There

are

are

fewer

living
for

on

this

parity.

in

1951.

people

farms but
there

is

—10

Today,

working
even

an

and

allowing

obvious

dis¬

years

this has resulted in deflation fol¬

want.

Take iron

ore

ago

as

we

a

in point

case

were

substan¬

tial importers of iron ore.
we

The softness in farm income and

prices

customers

in¬

national

indicators

business

first

urban

new

a

products

income

of

reasonable

a

of

come

not

farm

con¬

expectation.

general

industrial

tween

ance

of consumer

All-the

the past 25 years.

over

In

and

net

are

dications
grow

Today,

exporters and the in¬

are

that

our

steadily in the

exports will

that lie

inflation—both of which

wish to avoid.

The Federal Government is the

major part of the

only
that

achieved

has

It would be
ore

wonderful

converted

to

have

into fabricated

debt

and

debt

years

ahead.

this

lowed by
we

in

come.

for

relation

for

oped

cated

Municipal

States?
were

of

to

products—in
the
United
I think not, and if we
place obstacles in the

exports

to

that

country

is

an

to

one

pressure

metal products in Canada. But
where would we sell the fabri¬

economy

reduction

improved

an

This

the

a

national

of

that

the

and

in

of
in¬

reasons

has

adjustment

eral-Provincial

ratio

devel¬

in

Fed¬

Provincial-

financial relations.

Another factor,

often overlooked,

way

is +v,°t thp provinces and munici¬

she

palities, because of the growth in

Volume 182

Number 5492

.

.

The Commercial and Financial Chronicle

.

(2763)
population and because of indus¬
trial

expansion,
growing pains.

experiencing

are

The: demands
for

a

greater

enues

of

share

true

of

municipal

provinces.
of

Both

and

of

the

levels

faced

are

to

for

made

to

these

commitments

needs

The

requests

of

»

rev¬

assistance

authorities

government

large

tax

with

meet

the

a

growing population
expanding economy. It can

an

also

*r

A

who went into

in the

Canada.

same

debts

will

make

government

dent

municipal

these

levels

increasingly

Federal

on

and

of

depen¬

financial

assist¬

ance.

has

made

have

production processes

rapid strides.

dustries

and

have

better

New in¬

ket.

off.

We

have

now

families

people

homes.
farms

and

in

in

are

the

paid

on

areas.

powerful

Universal

to

the

aged,

employed.

But

the taxpayer must not be the for¬

gotten

at the table.

man

needs

to

be

reduced

Taxation

rather

than

increased.

If the total tax revenue

is

expanded

to

be

it

must

to families for chil¬
dren and compensation to the un¬

The

perfect.

Business

and

Canadians

need
to
give serious
consideration to the alternatives
which have been suggested. A re¬
turn to the tax
jungle of prewar

days must be avoided.

The

con¬

to

maintain

an

expanding

economy.

These

are

changes.
tended

only

some

of

the

list

could

be

ex¬

The

control

of

of

weighed.
the

weakening Federal
policy must be

fiscal

As

the experience of
period has shown,

postwar

fiscal

policy
the

ence

control

and

can

economic
taxes

over

Government

does

influ¬

climate.

Less

by the Federal

means

less

a

effec¬

tive fiscal policy.

The Next 25 Years

No

one can
speak of the future
complete assurance but the
changes in the next quarter of a

with

century should be just
At

Recently, there has been some
criticism of foreign companies in
Canada not making it possible for
Canadian investors
to
share
in
the

ownership and rewards of
their enterprises. More
important
than securing investment

more

in

which
Canada
their
of

existing

is for

outside

Canadians

and

eyes

the

enterprises

controlled

are

let

not

be

investors

and

of

to

open

many

that

are

seized
bty foreign
foreign companies.

1

Week

foreign

after

firms

plants

and

The

week

concerns

nadian

same

reads

one

Ca¬
new

factories

in

opportunities

able to Canadians.

Canada.

are

avail¬

Why don't

we

them?

grasp

Lack

of the foreign company. In
others,
it represents the establishment of

manufacturing plant in Canada

by

a company

that is already sell¬

ing its products in

this

country.

But this is not the whole
explana¬
tion.
Evidence
is accumulating

that

Canadians

enough

not

are

showing

courage

vision, '.enterprise. ;and
in relation to the oppor¬

tunities

open

to

them.

is essential to a
dynamic, expanding economy. In
the mining field, Canadians have
proven that they are prepared to
take risks, and the rewards have
been

substantial.

same

enterprise

needed

in

other

More

and

of

the

courage

sections

of

is
the

in

the

of

a

a

of
expansion
maintained.

era

might

that

say

the

has undergone

Encompassed

if

new

has already be¬
The trend of events in Can¬

gun.

ada

and

the

United

States

this

suggests that the decline
business activity experienced
1954

was

back

in

trend.

a

but

econ¬

revolution.

within

in

in

merely a temporary set¬
the long term
upward

Western

midst of

a

duction

Europe is in the

there

since early 1953.
In two years
has gone up more than 25%.

it

the

past

Increasing interest is being tak¬
in
assisting underdeveloped

countries.

Not

only

govern¬

are

progress

Great
is

but

private invest¬
by the United States,

Britain

and

Canada

even

A

new

expansion

the

find

Europe,

a

aim

of

United States economy,

investment

overseas

and

oped countries

means

an

at

latter

have

we

Provided

major

a

keep

we

In the

stake.

costs

our

line, Canada should be able
tain

fair

a

share

of

any

in

to ob¬

increase

in world trade.

of 1

k i

o o

n

given

any

above average

year.

The

expansion.

strings to

We
our

creases and

of

natural

have

bow

increase

dwindled due

tion

of

remains

fav¬

a

combina¬

government

policy and
conditions in Europe.

Canada

Immigration
aged.
In

in¬

immigrants

to

This could slow down

sion.

two

immigration. The rate

orable but the flow of

has

had
natural

—

needs

our

more

should 'be
A

'

expan¬

people.
encour¬

.

closing I should like to

re¬

iterate that the past year has been
an

active and constructive
Canadian

for

Bank.

people.

active

an

The

The

and

faith

in

It has also
constructive

has

We have
the

forf

Toronto-Dominion

Bank

to and shared in the
economy.

one

all know.

you

a

I think the

"big

buy" for 1956 will develop some¬
during the year, possibly in

the

early Spring.

what it is
To

bilities

let

statement
That

unknown

the

have

obscure

the

This is
and

I

tell you

the

many

issue.

be

Dow

some

Most
of

one

Jones

the

am

I

sure

don't

have

the number of stocks
that

averages

or

than

more

this

doubled

New

York

Stock Selection—a Key to the

Investment

Problem

do

profit?

Profits

reason.

York

The

Central

made because

into

came

make

you

a

are

1956

your

only made for

1955 profit in New
for
a

example,

new

was

contributed

growth of the

we

general

future.

is

with

look forward to 1956.

confidence

obvious.

hazard

To

timing will

a

be

good

guess,

impor¬
tant.
In other words, being pre¬
pared to buy on a decline if we
have

now

at,

setback, as I think we will
before spring.
Selection is still
always a key problem. Next year
it might well be selection of issues
that will improve in public regard
valuation.

market

wide

No

gain in earnings next year seems
likely among the Dow issues now.

situations"
not

a

pad and

cil and write

down

you

buying

propose

higher.

It is

a

WHY

a

pen¬

stock

should

good check

sell

on your

thinking.

To get back to the
you

thought that
do not have to go to obscure

shares to make substantial profits
tnHav

T

will

dismiss

almost

en¬

trend

of

General

stocks

like

Electric

and

reach the point where

we

and Ms

There
will

more

better

a

Steels

of

are

1955

opposite.

affected

course

automobile

1956

than

year

and those that think the

the

con¬

those that think

are

be

bit

a

"5

business.

by

The

ac¬

have

stocks

of

different

different

Issues like these still

purposes.

are

the basis

The

think

I

groups

likely

are

to be the most attractive for those

looking for better than average
gain are the aircraft manufac¬
turers

the

the

and

oils

and

perhaps

representative

of

the

air¬

craft manufacturers in the Dow is
I think

United Aircraft.

best

is

its

of

company

it

the

group

shares

Aircraft

have

misunderstood

for

long

"war

as

a

And

net.

to

less

Boeing

than

4

times in 1953.

United

of

sell

at

think

I

one

forecast

earnings

even

or

forecast

which

that
better

a

Aircraft

five

next
a

is

fact

make

10

for

of

the

than
companies
times higher
years

many

many

price-earnings ratios.

the

partly

"peace'

rather

orders

and

Government

high

and

partly

partly
orders

because

our

frontiers demand

engine
makes

of

rapid

design
obsolete

it.

partly

"war"

commercial.
be

far

kept

flung

And also be¬

obsolescence

(which
airframe

cars

1956

are,

production

in

any

to

cf

turn

design).
government has discovered
that
it
is
very
costly to close
down and open up as it were, and
that the greatest economy and ef¬
ficiency is obtained by maintain¬
ing a relatively steady level of
production.
Replacement
needs

issues

should

addition, they still

sell

more

on

old

an

fashioned "prince or pauper" basis
when, as a matter of fact their

earnings
justify a

dividend

and

better
the

is

the Dow

steels

I

I

but all

are

S.

good
in¬

to

be

under pres¬

sold

and

year

then

seem

have

are

they become

These

U.

among

National

steels

bought when they
when

favor

and

think

next

records

valuation.

issue

—Bethlehem,
cluded.

strong
the

later

again.

issues "in

the Dow I think deserve the most

attention.
As to other

stocks, let

me repeat
buy" of 1956
will become evident during
the
spring months of the year rather
than in December or January. I

I

think

of

the

for

the

"big

weakness

after

the

turn

rather than strength.
The strength may come later.
...£
year

Outside
mention

of

the

Dow,

will

I

Studebaker-Packard

issue

an

sold

to

a

standstill

as

be¬

of generally bearish advices,
selling, and poor earnings. Its

cause

problems

are

very

This

look

13,

then

as

I

very

the

logical

it

see

1955.

I

opinions

on

end

note

change, the

to

out¬

Tuesday, Dec.

on

news

its

capable.
market

this

chrono¬

because

change.

favorable

great—but

is
is

management

government
must

less

simply have
event, I think
outlook
is
reasonably

In

steel

seem

tax

United Aircraft earnings are not
but

that

hustle.

look
The
can

far

sold. There

good and that steel

ba¬

result, in the last ten
years, United Aircraft has sold at
an average of about
7.9 times its
expanding earnings. In 1953 and
1954, Douglas sold under 5 times
its

that

and

approximate 1955 production

sure

in the world.

As

will

is

built

think

Steel

steels.

very

and

view

reflect this. In

well selected portfolio.

any

cepted

and that dealers will

either.

be

to

for

values

"secondary issues"

or

apt

Different

cause

Always get out

growth

Standard

timing seems to me to become of
vital importance. The steel
group,
for example, in my view comes

yard¬

as

the

like

the

three

Carbide. The market price

Now

near

price they are selling
most so-called "special

then

are

more

a

is

growth

Union

and
are

Jersey in the last
roughly equivalent to

duPont,

their

the

bies."

despite

stock

a

than

Jersey, and

will be

been

raised

the

be¬
influences.

individual

further

New

New

decade

year

be considered

can

look
of

Actually,

in

of

a

.

however, those that do not agree

were

which

Oil

last

of

worth

time.

higher earnings and
dividends, reduced the acceptable
yield. The reasons for next year's
possible profits are currently not

deep-seated
It

of

cause

much next

very

out

sticks by which all shares may be
measured
and
unless
they
are

1953

the price earnings ratio valuation
and

own

a

move

great

increasing earn¬
ings and dividends and increased

trend

•price earnings ratios and at low
income yields. They are not likely
to

as¬

is not.

near

for

oil

is

the

are

sell

California,
Company, which

oils.

next

sell

are

the

outstanding.

of

troversial.

right

potentiality at the
profits since

Oil

Dow

some

.

to

need

Standard

generous

of

Other

:

example.

management

situation

those

stocks

i

The

How

No

•

would

These,

have

is only one.

market.

to

in

Growth

oils

way,

I

and General Electric for

Aver¬

professional audi¬

a

Dow

doubled

another

"big buy" is not

or

in

possi¬

made

time it will

stocks

ence

reiterate

me

I

lows

They
general

another

stocks"

highs, I next think of the real
quality shares. Shares like duPont

I do not know

the

high.

Tax shelter is

Texas

light than the majority.
Reverting now from those

now.

examine

is

yields

flow

would favor this group. Or to put

before that I felt

to talk about

me

and

cash

portfolio.

want

coming

Everything considered, for those
that feel they must buy now, I

issue

Dow

their

year ago

time

and

industry

of

individual issues today and there
are a few that
appear in a better

primary need is to

Just

The

sured.

Dis¬

rate

so.

it

you

results.

made because of

Population growth has been a
prime force in Canada's economic

its

the

group
has
seemed
for years
and still
Price earnings
ratios

moderate

liberal.

December-January this year
would not be the best time to
buy
or
select for 1956.
Nevertheless,

g

—

a

think

oil

seems
are

Some Individual Issues

buy was New York Central
around
$22.
It went up to $49

in

I

I think I said

that

of

The

Standard

only be obtained by out
ordinary investment ap¬

the

as

that

in

undervalued

subject to tax
selling now that seems even re¬
motely of interest.

market is to try and

watch the basket.

in¬

expand¬

that

can

increasing

dustrial expansion of underdevel¬

those

is

shares

than in the past. If you buy
United Aircraft, you will tre buy¬
ing the best.

the

National

aircraft

years

current

about

say

only

has

single out the best. Put all your
eggs in that one basket
and

prosperous

confidence in continuing progress

war

stock

big buy for

a

I

for

that




at

Central

of

era

Western

in

of the

that
way

during

increasing.

tillers

for.

to

ment abroad

than

the

billion

passing to the next issue
that current develop¬
suggest greater selectivity

me

ments

gain industrywise and marketwise
may be slow.
I think this is the

change in
policy will be called

investment

ing

plans such as the World
Bank and the Colombo
plan mak¬

depression in history,

major

better

He

in

thusiastic

have tried
adjusting to a varying
percentage of bonds or stocks. We
may
now
be near to the time
when after 13 years a

ages.

quarter-century has been the worst
a

far

times.

en

by far the

"timing."

boom.

Industrial pro¬
has
been
rising

of

three-quarter

a

Before
let

be.

buying

one

less than.

are

shares outstand¬

common

"

price, but
not excessively so.
My principal
reason
for; not getting too en¬

best investment record. He
has
done far better than the man who
has attempted

out¬

of expansion

era

short

nation

in that period the Canadian
omy

new

One

one

is

years

life

to another has had

proaches.

a

been

Far-Reaching Changes

Twenty-five

take

now

much risk in

see

However, it is not

better

earnings ratios and
yields
should

dollar business.

the best years and also its income

equities and has only shifted from

for

peace can be

the

economy.

time

can

optimistic view of the

prosperous

Risk-taking

pay.

My particular

remarks I

my

ing volume of world trade.

of

capital, or perhaps I
should say savings, is one factor.
In some cases, it reflects
greater
technical knowledge on the
part

a

of
one

could

its

months

acceptable

5,000,000
ing for'

their

Since

you

This

of

purchasing

establishing

or

that

dividends

popular favorites

therefore, that the stock
market is going to be with us for
a
while. It is not yet the time to
expect a bear market.

mental

so

opportunities

available

outset

Of the

near

yield is below that average. That
means there is
already some an¬
ticipation of a change for the

to

tax

look than for many
years and that
the Western World should be in

partici¬

pation

the

suggested

shares

I think

the

great.

as

year

Are Canadians Overlooking Their
Opportunities

today, there is an exit
buy. That of course, is

It's

do not

it.

price

lower

day. It
is true that its current
price earn¬
ings ratio is above its average of

ticket

done

considerably.

What of the next 25 years?

a

sequences

I

do

one

far from

generally

What is more, if
you own equi¬
at
a
profit as most share-

effort

present Federal-Provincial
are

higher.

ties

owners

selling time.

Industrial

six

dividends. The trend towards im¬
proved

lows, perhaps the most interest¬
ing
is National
Distillers.
It's
earnings
next
year
should
be

third al¬

no

about

also continue. There

This is tax

1942, the investor who has
remained
completely invested in

rates.

Taxation Agreements

equities. There is
ternative.

The government plays
an
important role in economic af¬
fairs andViis
pledged to use its

be

achieved through a rising national
income rather than higher
tax

or

Dow
from

nine.

question of cash

a

with

of reaction.
Now, it is on the move
again. Selling at 12 times earnings
yielding over 4% there is
plenty of room for higher market
prices from higher earnings and

selling at over 20 times
earnings to one selling at under

Equities

or

always

among
the
have a choice

high

a

and consolidated

and

issues

Dow

Cash
It is

car.
own

live

a

economy.

are

a

urban

now

a

mar¬

their

persons

more

Labor unions
force

have

oWn

Fewer

would

required.

the

mortgage lenders and plain cash
hoarders, needed warning.

Not only
people but they

allowances

be

of

was

dollar

being.

more

Most

of

communities

new

into

come

we

Some re-arrangemeint of Fed¬
eral-Provincial financial relations
to

It

You

pensions

seem

alarm.

issues

More

continuing sharp

for

tirely,*

of

position

And Issues That Look Attractive
stocks.

anization

last January

Forecast,

dangers

ments and that

a

company sales.
United Aircraft
made

depreciation, these bank
commonplace. Everything is pro¬ depositors,
bondholders, invest¬
duced in greater
ment
insurance
quantity. Mech¬
policyholders,

predominately middle class

provincial

constantly raise the floor beneath

A Stock Maiket

To¬

necessities. New products are

now

23

aircraft

Rip

a

day, the economy is bigger. Goods
formerly regarded as luxuries are

are

in

3

vaqe

'■

-

.■-•

,

in part,
at the expense of the
provincial and municipal govern¬

rise

"

far-reaching

sleep in 1930 and
today would wonder if

up

was

Government

achieved,

;

Continued from

Winkle

woke

he

do

been

been

person

Van

be argued that the excellent
financial record of the Federal
has

have

changes.

provinces

of

the

greater financial

by

the

not without merit;

are

is

same

period of unsurpassed prosperity. ■'It is not surprising that
a

there

Federal-Provincial Finance

•

and

markets

changes and our
This is a time

short-term

commit¬

ments.

The

I

was

month ago

more

up

lower

think

wfll be

in
be

I

bullish

over

a

in Buffalo with the

market

than
even

it

is

less

now.

I

bullish

mid-January. I expect again* to
very
bullish several months

from

now.

Financial Chronicle

The Commercial and
24

tax

agencies

financing the

on

system of
internal taxation extremely diffi-

practical, realistic farm pro¬
gram is now being threshed out
A

with

consultation

in

ablest

the

people in the business. This will
be presented to the Congress by
the President and Secretary Ben¬
son.

labor,

refresh

ernment

day in my office at the

Every
minders

years,

be built on

sound foundation. A

a

for

foundation

sound
broad

life itself.

as

moral

is

life

as

It includes the

qualities of integrity, dili¬
and understanding. But a

gence,

the

of

the

is

nomic

for

base

base

national

our

Only

secure.

can

for

ance

build

we

such

on

with

life

assur¬

children and grand¬

our

children.

ant

particularly import¬
for examining our eco¬

foundation

engaged in

today; we are
great world struggle'

a

which is testing our strength and
character to the utmost.
In this

struggle, we must main¬
military power which will

tain

deter any aggressor.

At the same
should exhibit to the
world a constantly greater reali¬
zation
and
appreciation of the
unique advantages of the free way
time,

we

of life which
inherited
are

Americans have

we

and

developed.

These

most effective meth-;.

the two

ods

for

preventing communism
from engulfing the world.
The

kind

maintain
from

life

of

is

the

at

to

seek

we

opposite pole
in

communism,

which

the

individual is the slave of the state

—kept so

by fear and by force.
We seek a life of the greatest pos¬
sible freedom and opportunity for
the development of the individual,
the family, and the community.
Not for

the rule of controls and

us

restrictions.

believe

We

that

life of freedom is what all
kind

carried

the

the first

ton,

paper

a

man¬

"Not worth
the

was

common

characterized

the

today is

Con¬

day realized
politically independent and
permanent nation was impossible
a

long run,

sound

of

money,

unimpeded
value

strongly opposed to taxation by a
Federal authority, seemed an al¬
most insurmountable task.

Hamilton's-bold

•

;

V

by

worry

their

of

is

one

money.

on

go

about the
This, of

prosperity and,economic
growth of this country.
Some Questions

But, in the past few years, some
tion

have

been

raised

to

ques

old principles.

these

World War II, followed so soon
after by Korea and the continu¬

ing cold

debts

and

foreign

to

owed

of

volume

self-respect!

to distribute the

widely

among

people.

more

together with faulty
fiscal and monetary policies, pro¬
duced an inflation which seriously
reduced the buying power of the
war,

that lasts.

predic-

integrity

of

have sought by many
debt more

We

(2)

means

thic

venture

nrincioles

We

freedom

fiance based

on

con-'

and

economic sound-

thut huve m&de

]^0ss

this country

As •• George ■

Washington

great.

.

said:

once

each day.

meet

I

That the solution which suc-

Individual

represents a struggle which is
never-ending—one which we must
;

today,

Qgg^js will follow the fundamental

"If,

-

■

defend

our

people,

ourselves

we

how

;

the

please

to

what

offer
prove,

Let

work?

we

disap¬

afterwards

we

can

raise

us

a

trying to lengthen its matur-;
ity by the sale of long-term and
ran
The event is to
medium-term bonds. The amount the hands of spair.^Xhe event is
God.'
0f
the
floating, or short-term,
debt has been reduced. The Sav-

are

repair

Legg fo Admit
Rogers to Firm

Bonds Program has been
stepped up. This is a direct way
in which every citizen can help
ings

and in which your

organization is

BALTIMORE, Md. — John C.
1 > ;
worked unceas¬ Legg & Company, 22 Light Street,
members of the New York and
ingly
to carry
out
Hamilton's
policies of an effective Central Philadelphia-Baltimore Stock Ex-r
banking system as the core of a changes, on Jan.
1 will admit
sound financial mechanism.
Our Philip O. Rogers to partnership.
helping.

have

We

(3)

objective

principal

been

has

Federal

the

that

sure

to
Re¬

System is assured indepen¬
of action for the welfare

Mr.

for

has

Rogers

with

the

firm

military

been

connected

since

1930, except
service in the Air

Force.

people, without distortion
political pressures. Federal
Reserve
policy during the past
the

0f

Sshwabachsr to Admit

from

three

has, I believe, con-;
tributed
positively to our eco¬
nomic strength and stability.
years

"

Two New Partners
SAN FRANCISCO, Calif

Jan.

„

Is This Dynamic?

-

critics

.

is

to

who say . ihat
principals are

fashioned

exceeded that of any other coun-

will

be

&

Co.,

Montgomery

100

Francisco

San

Stock

Ex-

With Hamilton Managem't
(Special to The Financial Chronicle;

!

our"

citizens from government's adherence to sound' principles is
proving the
best stimulus
to
dynamism that could be found,
All of this may seem remote tosome of you, but, in reality, it
is very

III

and

changes.

supported by our economic history.
to

On

Heller

street, members of the New York

in the world. The principal
that good money is the best foundation
for
economic growth
is
comes

E.

Schurman

G.

bacher
and

try

that

Clarence

admitted to partnership in Schwa-

lacking

quired to assure the country's
growth and prosperity?
Our reply is that the dynamic
growth of the United States has

Confidence

1

Jacob

those
these old-

answer

our

dynamism and that more and
more government spending is re¬

for re¬
establishing the Nation's credit
involved recognizing and funding dollar and brought hardship to
the Nation's debts; paying inter¬ people who were depending on
est on them, and retiring them as savings or were living on pensiops
they came due.
The domestic or fixed incomes. Although cerdebts owned by the Federal Gov-* tain groups, such as your own, apernment, the depts incurred by- peared at times to achieve greater
the 13
colonies
in fighting the prosperity, it was not the kind
plan

0f

tion:

in

voices

-

the solution to the farm problem

forgotten. It

1^0 decided snd then

of the reasons, for Jt, What

the great

To achieve this in a raw, new

country,
with
credit
virtually
destroyed
both
at
home
and
abroad
and
with the 13 States

could

business

and

trade

try's defenses strong.
,
This is not a problem which can

dence

people have clung

concept

financial stabil¬

without national

ity.

the

to

course,

Our leaders of that

that

American

$7.4 billion.
the way of

need it imposes to keep our coun-

serve

In the main and in the

the

high

a

the

world trade.

further
substantial economy is
the cold war and the imperative

place of "not

the

taken

undergirds

predecessors,

our

block in

road

The

make

continental."

a

from

have reduced so that to-

been reduced by

dol¬

a

phrase which, and the dollar has been so secure
value of that in people's minds that the flowrof

integrity.

or

has

lar"

worth

This phrase has come down
to us today—and still means what
it did then—something which has
soundness

The dollar

of value for

standard

a

countries

other

the whole world. "Sound as

money.

no

in

traveled

know what this means.

Continental"

a

reluctant
out under

a

carried

and

Washing¬

George

making the dollar the best money
in the world.
Those of you who

issued by the

Continental

gress.

war,

basically desires.

money

the

and

of

adopted by

were

Congress

nationalities and

States

Alexander

great difficulties. The result was
that the foundations were laid for

could be trusted. There were some

some

of

policies

force

moral

most

various

This is the principle
today m our Federal

on

These

have

of

be the

American bank-

Hamilton, supported by the great

immediate
challenging problem was that
country had no money that
country's

to

Reserve System.

day.
The

1791

bank and

new

ing System.

by George

and

of the

States,

in

chartered

central

a

United

the

of

was

as

core

establishment of

the

was

Bank

act

a

reason

nomic

the

which

im¬

1789,

year

became

Hamilton

ander

coins

There is

finance

Washington, who, in¬
cidentally, as you all know, was
one of the leading farmers of his

country is solvent—that the eco¬
is solid and

the

in

was

our ancestors,
important step
program of sound

to

fosck

Qo

in support of a

mediately following the adoption
of
the
Constitution, that Alex¬

responsibility
to see that our

special

Treasury

To

the second equally

Secretary of the Treasury. He was
the first Cabinet officer appointed

also

economic solvency.
It

It

we

25.

and the Constitution.

requires

foundation

sound

did it in 94 out
of the first 140 years of our his—
tory. But since 1930 we have balanced it only three years out of
and

fcudget,

we

in

Sound money

antibiotics.

of

use

fertilizers,

in

machinery,

The forward movement of the
for a balbeen done, economy has provided job opporprimarily, by reducing expendi- tunities for those who leave the
tures by more than $10 billion, farm,
and has provided others
With the recognition that our tax with part-time jobs that added to
rates are too high for the max- their
farm
incomes.
This has
jmum
dynamic growth of the helped.to protect the per capita
economy and the knowledge that
incomes of our farm population,
big changes in government spendwhile it would not be appro^
ing must be cushioned, taxes have priate for me to try to give you

debt.

have asked me today
about the problems
den Mills.
and programs of the Treasury. So
These, and other former Secre¬
I have taken for my title, "How,
taries, faced problems astonish¬
Firm A Foundation," the opening
ingly like our own: difficulties in
words of a grand old hymn which
raising taxes and borrowing
many of us here have sung since
money, despair over the spending
our early youth.
I have chosen it
pressures
upon
the
Congress,
because, in the Treasury, our main
emergencies arising from wars
concern
is
to
maintain
and
and economic fluctuations.
strengthen
the
foundations
of
It was under these leaders that
peace
and
prosperity
in
the
we developed
the great financial
United States.
That is our busi¬
traditions which have shaped the
ness—and it is, in truth, big busi¬
course of our history as surely as
ness—the biggest of all.
have the Declaration of Independ¬
A nation, like a family, has to
ence

well

as

begin some payment on the
In other words, we started
with a firm resolve to balance the

of the Treas¬

hang on its walls; Alexander
Hamilton, Carter Glass, and Og-

you

expenditures,

to

as

ury

to talk to you

Nation's in-

adequate to meet

be

current

its

housed many distin¬
guished public servants. Portraits
100

would

come

we

sound

A

produce.

day we have real hope
anced budget. This has

designed

These first steps were
to make sure that the

which dates back more than

room,

This

well.

surrounded by re¬
of these traditions.
My
am

year

into office (1953), there was

inherited

port duties for most of its income,
adding levies on distilled spirits
to cover domestic production as

them.

Treasury, I

dependence

heavy

ever-widening vari¬

an

farm

stimulates progress,
scientific advancement m farm

deficit of $91/2 billion, which we

a

products, the Govdecided to rely on im-

first

The

budget.

eral

imported

on

memories about

your

of

this reason, and because

country's

the

too, and I
minutes

them

have

we

any

for

of

ety

came

For

should like to take a few

of former Secretaries

Foundations

The
But

of

mand

(i) We believe in, and are
working toward, a balanced Fed-* economy

cult.

finance, where I

In the field of

to

crops.

This attitude made the ad-

ministration

Economic Foundation?
Treasury, we are also working
continuously with the agricultural

chosen by Washington and Ham- ards of living, higher standards
Let me list of
nutrition, and increased de¬
ilton 165 years ago. T
—
— - --■

im- them.

evading British levies on

ports.

How Fiim Is Our

had

and

tea

on

in

credit

the stamp
taken pride

sented such imposts as

Continued from first page

a

Thursday, December 22,1955

..

.

(2764)

«DENVER,

Colo.

George

—

E.

thaniel I. Levin, Roberta J. Sutton and Henry H.

Quillen have
Hamilton

joined the staff of

Corpora¬

Management

tion, 445 Grant Street,

...

-

,

Charles Altsman Opens
Charles Altsman

a

f

securities

at 425

*

is engaging in

business

from

offices

Broadway, New York City.

Join J. Logan Co.

close.

The principles I have been talk¬
(Special to The Financial Chtonicle)
people,
watching their
recognize that
ing about — the firmness of our
LOS ANGELES, Calif.—Daniel
the
need
for military strength, million, a towering sum in those shrinking dollar, have come to
in
days.
Perhaps no more coura¬ doubt whether traditional policies foundation — are interwoven
O.
Lamb,
David
L,
Schloredt,
which
calls for spending
many
geous step was ever taken by a fi¬
of sound,money could be mainthe fabric of our whole economy. Delmar Gladstone ani Lewi?
billion dollars a year, makes more
nancial statesman than Hamilton's tained. I am sure you have heard They apply to industry, to trade,
Akmrkiia^'have^orned'^he^strff
difficult our quest for the freer,
action in committing the country people say, "What's the use of and to the professions. .They ap-v 0*
j
Toean
&
Co
210
West
better life.
We are for example
to
pay
this debt in full, even saving your money, because it ply to agriculture,Uoo. No
paying taxes that are very heavy,
the
'
\though
bonds
representing
the will not buy as much when you suffers more when the economy;,
taxes
which in themselves levy
is
whipsawed by inflation and
debt sold in the market at 10 cents come to spend it."
M. D. Maynard Opens
certain restrictions upon all of us.
/
on
succeeding deflation.
the dollar, or less.
But he
Some economists have even

countries amounted, in all, to $78

We must frankly

*

Some

*

^TT^

uul

^

WGSl

^

But

have

we

gone

alternative.

no

Our joint objectives place heavy
strains
upon
our
Government;

they

force

strengthen

foundations.

our

spendthrift

And, if
we

examine

and
We

afford unsound, opportun¬

cannot

istic.

to

us

government.

sick situation develops,
afford to attempt to
short-sighted and

a

cannot

cure

it

with

temporary

nostrums.

We

must

diagnose the trouble and seek to
cure

it at the

source.

knew

that

stablish

the

Government's
start

to

was

Before

the

In

this

thankful

Great

situation,
every

traditions

principles

of

were

Nation—for the

freedom

and

built into

should be

day for the great

of this

government

we

and

integrity

our




self-

which
Government.

the

financial

new

integrity

immediately

on

a

so

far

to predict that this and

as

countries

other

Let

reassure

me

TPr^ncurxr

a
the

Treasury

not

believe

adequate

Federal

income to pay interest on the debt,
to retire the debt as it matured,
to

expenses.

meet Government operat¬

But the

eral

individual
their
taxes.

sources

were

states

of Fed¬

limited.

were

The

jealous of

prerogatives in levying
The colonists, under the

own

British crown, had vigorously re-

It is

we

you.

Today in

DonQrlmonf

Department

this.

Quite

uro

we

the

rln

do

con¬

believe firmly that this

stable
money which will retain its value
down the years. We believe, also,
country

can

have

a

sound,

sound and growing economy.

Today in the Treasury we are
following policies which, while, of

adjusted to the current
nevertheless aimed at
same
objectives
as
those

course,

needs,
the

are

difficult, of course, for the

perplexing period
prosperity of the
with

-

Nevertheless,'

that this is the best foundation for

possible

revenue

trary;

Today

!

(Special to The Financial Chronicle)

\

farming community in the present

whole
Our Policies

could

and needed it badly.

without

con¬

its debts.

Government

No

sible

face

ual decline in the value of money.

sound financial program was pos¬

money,

would

tinually rising prices and a grad¬

put the plan into effect, it needed

ing

Tradition

to es-

way

in

sound program to pay

and

Our

surest

confidence

to view the
country as a

entire
a

general economy is
harlrffTTHinrii
background

of

the

satisfaction.,

strongly
an

based

are

so

lean

necessary

a

buffer

years.

conducting

securities

a

Bank Building. He was

previously

with S. A. Sandeen & Co.

*

;

-

' M" ■■li.j,
f?a,".
OTO1 IXOf 1x161*11 uCCSt

p

-

(Special to The Financial Chronicle)

problem/ Sound

Sound policies
help towards restraining the inflationary pressures on prices of
for

is

nard

t.n pt1v sound solution
to any SOlinrf solution

farm

FREEPORT, 111.—Myrl D. May¬

business from offiees in the-State

essential

monetary policies can protect the
valueof
the
farmers'
savings,
which

-

SHREVEPORT,
La.—Northern
Co.,
Inc.
has
been

Securities
formed

with

offices

in

the Ward

Building to engage in a securities
business.
Officers are Lawrence
l.

May,

President;

A.

M.

May,

agricultural equipment and fer- Vice-President, and Lawrence L.
tilizers and the other things he May, Jr., Secretary,
buys.
Helen R. Lee, Maxine Roe andFurthermore, a sound general Mary DeLouehe have joined the*
economy

stimulates rising stand-

firm's staff.

Volume

182

Number

5492

.

.

The Commercial and Financial
Chronicle

.

(2765)
heads, and bureaucratic floors

our

So

People May Prosper

under

in.

By HENRY G. RITER* 3rd*

to

its

use

political

ent income tax structure

confiscatory, and
tration

and

the people

so

American
be

is

fundamental

one

principle,

maintained

prosper,"

it

which

"so

is

may

people

the

equal

principle of
appli¬

000

1954

the
and

Within

tribution

last

48

have

we

the

the

of
est

Let's

equality under law.
that

possible

Henry

G.

stems

of

Riter, 3rd

po¬

the

history

The

Industrial

tions have become
raised
eyebrow,

the

courts

And

nor

against

mergers

the

time

ual

a

incomes.

equality
our

in

But

dramatic

if

under

and

in

of

labor

kind,

any

in

or

in

sometimes

almost

not

And

the NAM,

too

confisca¬
you

name

day will come, pray God
late, when the American

like all other business
corporations, is prohibited under

people will realize that their

its New

literal

ent

York State Charter, and
by Federal Statute, from partici¬
pating in partisan politics or con¬

tributing

financially

to

has

been

tax

law

translation

of

omy

is

an

into

our

fundamental

a

pres¬

almost
econ¬

Marxian

philosophy.
Over

party

campaign funds.
It

income

wrote

is

to

destroy capital,
by some
and the way to
that the new labor
destroy capital,
organization
Marx said, is by a
cannot possibly be viewed
steeply gradu¬
as
a
income
tax.
monopoly, and at the same time, ated
Today,
that
Marxian plan to destroy capital
it
has
been
boasted
that
the
is, of all incredible t.aings, the
merger of the two unions
brings
American way by law, and un¬
together some 15 million
workers,
representing, with their families, thinkingly accepted by millions
as part and parcel of our
50 million
capital¬
Americans, or nearly
one-third of our whole
population. istic, free enterprise economy.
Again, it is asserted that there
is

intent to form

no

labor party,
but there is also the flat
warning
that the full weight of the
merged
groups will be thrown into the

fight for

Congress, packed with

a

"friends

a

sympathetic

cause,"

to

labor's

we

are

have

and

prise and initiative, the better job
do today, the greater success

achieve, the smaller the
cf

a

tion committees cf the two
parent

merged, too. Already,
reported, t..e combined com¬

fair

reward

we

por¬

are

al¬

to

be

of the

with

comment,

sent

to every last one
than 15 million mem¬

more

bers of the

new

organization—one

of the

biggest mailings in history,
the union bosses hope it will

and

reach from 40 to 60 million voters.
Not a labor party?
Not

a

labor

monopoly?

For years we've

countless

seen

and

flagrant examples of monop¬
practices by unions.
But
nothing could be done, or can be
to

,

unions
from

curb

the

business.

they

statutes

appar¬

from

applying to political

activities, as witness
examples from a
contribution

velt-New

And

are" exempted

of

dollar

because

specifically exempted
anti-monopoly statutes

applied to
ently,

them,

are

the

Deal

a

long train

half-million
to

Roose¬

a

campaign

chest,

■

♦From
60th

an

address

Congress

sponsored

of

potentials

for

violent

for

outbreak,

only the

a

year

In

5%

as

the

weeks

sometimes

followed,

wondered
of

one

Well!

that

my

year.

if

that

I

had

moments.

saner

I

1955

been

the

be

can

biggest

we've

prosperous

and

ever

of

year

economic advance

in

and

the

I

in

country

believe

globe

approximate

level.

More

but

today

in

$1,000

all-time record high

people

employed

are

peaceful

pursuits

than

bigger. NAM ever before.
member
companies,
large
and
This amazing record has been
small, are betting literally mil-, due in
large measure to the poli¬
lions- and billions of
even

dollars

the

our

omy

us

magic carpet of
is going to carry
plateaus.

that

econ¬

new

This

far

is

from

the

talk of those who spell
prosperity
in terms of

ing.

big government spend¬

"give-away"

ing

the

companies who are in¬
vesting billions in the only real
security,
the
security
achieved

to

and

the

pros¬

freedom

of

sums

goods

for

During his recent illness
active

result

role

of

unusual

that

instance

of

President

a

in

illness

un¬

The

is

so

previous

every

the

an

occurred.

of

an

in¬

cumbent of the White
House, the
administration of the country be¬
gan to split and weaken, confusion

more

well aware, this is one of the
est tests of an executive.

high¬

acceptance

America

14,

1924,

dividual initiative and private en¬
terprise at work so people may- of the President's Cabinet who de¬

Aug.

speech
on
Calvin Coolidge

said: "I want the people of Amer¬
ica to be able to work less for the

by Mr. Riter
American

at

the

Industry,

by the National Association of
New York City, Dec. 7,

Manufacturers,
1955.




But!

We

ings of the people can be kept by
the people, we are bound to suffer
a

distinct curtailment of

very

our

liberty. These results are not fan¬
ciful, they are not imaginary; they
are grimly actual and
real, reach¬
ing into every household in the
land."

;f t

To tax away
to sap

willingness to risk,
initiative by undue and un¬

fair

levies, and to penalize success
the result of hard work consti¬
tutes the very antithesis of the

as

American
can

of

wav

born into
want

tradition, of the Ameri¬
life

and

you

and

I

were

the way of life

restored

for

our

we

children's

children, and their children.
What
freedom
For 20

happened to that
and

long

years we

way

of

progress?

emergency
to
crisis to crisis,

lived, from

emergency,
from
from fear to fear.
We had bureaucratic
ceilings over

must
in

not

become

so

our

the

material

evi¬

prosperity, or in
glowing prospects for our fu¬

freedom

earn¬

That's in¬

ture,

that

we

which

lose

sight

has

made

of

the

our

glorious

future

can

be

from

this

than

a

century

large

nation

tional results

These

Cabinet,

in

four

ago,

♦Summary of

hold

Foster

in

the

of

Dulles,

Mr.

Stassen

the 60th Annual Congress of American
Industry sponsored by the National Asso¬
ciation of Manufacturers, New York
City,

ac¬

freedom; and the

which follows the enjoyment
it, "are almost incompatible."

7,

1955.

are

time

unreservedly
-

tested
you

principles

such

duty-bound,

are

as

and

equally committed to op¬
with every force at your

of

command, to fight whenever and
wherever
and
by
whom, those
principles are assailed.
NAM

life, for

ual's

right of choice, his right to
work without compulsion to be¬
long to any organization, his right,
in our capitalistic profit and loss
system, to exercise his individual
initiative
risk his

Those

to

make

a

profit

and

savings.
are

only

of the prin-

had

is

the

has

fact

been

that

in

men

cut

1952

to

But

a

and the number

Armed

from

Forces has

3,600,000

men

in

1955.

2,900,000

what

the claim

spending
by several bil¬

year

the

years.

defense

reduced

lion dollars

been

three

are

men

the

facts

in
the

of

strength

of

America.

In

post, and many thousands were in
military hospitals as casualties.
By ending the Korean War, build¬
ing up the army of the Republic
of Korea,
improving production,
modernizing the Armed Forces,
economizing day after day, check¬
ing the inflationary spiral, spec¬
tacular results have been achieved.

Thus today in real strength the
United States is
far

than

it

more

powerful by

in

was

1952

in

or

other

peacetime year.
This
strength is due in large measure
any

to the

leadership of the President

and of the top four.

This strength

is devoted and dedicated to a dur¬
able prosperous peace with free¬
dom and justice.

To Be Dunscombe Partner
Harvey J. Burnett
be

admitted

on

Jan. 1 will

to

partnership in
Dunscombe & Co., Ill Broadway,
New York City, members of the
New

York

Stock

Exchange.

Thomson McKinnon Add
WEST

PALM BEACH, Fla. —
Charles H. Block has been added
to the staff of Thomson & McKin¬

non,

Florida Bank Building.

committed.

so

Goodman

has

3311

expanding

an

Harry Goodman Opens
HOUSTON,

econ¬

Montrose

gage

in

a

Tex.

—

opened

Harry
offices

Boulevard

securities

to

D.
at
en¬

business.

omy in a growing America. We're
for full speed ahead on an
open

highway—and
will
any
of

continue

we're against and
fight against—

to

roadblocks

on

that

NAM
a

is
free

Richard Kohn Partner
NEWARK, N. J.

highway Jane

progress.

and
some

is

NAM is for

individual economic, religious and

political freedom, for the individ¬

these

must be
pose,

ditional American way of

States

in

(Special to The Financial Chronicle)

And when you
committed
to

ease

NAM, for nearly 60 years now,
has stood foursquare for the tra¬

United

Presumably the basis of

Ma-

those,

to

was made that the defense

the

weakened

at

for

quire and

senior

remarks

ciples NAM is for.

necessary

record

the excep¬

the recent crisis.

men,

caulay wrote; The Americans will
perhaps lose their freedom when
they begin to reap the fruits of it,
the I energy

of

thanks

the

for

John

are

of

measure

of the three years and

Dec.

realized.
More

a

today's

prosperity possible, and which is
one,
if not the only, assurance
that

I would like to talk with
you a
bit this noon about the top quartet

serve

dences *of

condition

the

rnove!

That's

'v-r

engrossed

the

which

the

on

prosper!

That is the chief meaning of free¬
dom. Until we can re-establish a
under

Americans.

charge

1952, many thousands of the men
were in Korea, in an
exposed out¬

money

better

and
more

recently made
highlight the results

defense

industry forward successfully and effec¬
thus puts into productive
equip¬ tively the policies and program of
ment mean more and better
jobs, the President.
As you men are
more

Re¬

of the work of these men under
the policies of the President. The

and

through individual initiative and
private enterprise. By the end of
1955, industry will have spent and dissension became notorious.
$27.5 billion and, it is reliably es¬
This time the Cabinet moved
timated, that in 1956 it will invest even closer
together, and a tightly
another $33.5 billion in new
plants, knit organization of the govern¬
new machines and new
equipment.
ment of this great country carried
The

will

justice has been and is of historic

precedented
nam¬

with

peace

they

of the most

significance.

and

programs

government-made security.
I could go on for an hour

perous

durable

a

that

as one

One of the attacks
will serve to

been

devotion

predict

days of the founders of the

of

His

objective

public.

Eisenhower.
objective of

different

I

history

cies and program of the President
of the United
States,

Dwight D.

to

President's

attack.

that

in the

an

the

just, durable, and prosperous
peace
is obvious.
They are all
men who were
outstandingly suc¬
cessful
before they entered the
Cabinet. They have all been sub¬
jected to the pounding of public

net of the United States
since the

are

will

interrelationship of this ef¬

to

a

significant top fours of the Cabi¬

product of the entire

1955

of

has

significant

when the final statistics

fort

same

it

in this

world.

most

had,

most

a

successful for¬

a

a

stand in

globe.

time
a

billion for

has

around

At the

Harold E. Stassen

been

I

Not only

any¬

where

gross

conservative.

were

the

think that, by the time
this year ends, it will be seen that
was

wars

waged

ago,

during the

a

in which

year
no

just

but

nevertheless,

economic his-

our

The

new

gain¬

national income

establishment of

stable currency, an
effective defense, and sound and
just counsel.

tions, serious
c 0 n t i
nuing
dangers, and

of

Attorney General.

eign policy,

than

more

ury; Charles E. Wilson, Secretary
of Defense; and Herbert
Brownell,

They have been crucial in the

many

situa¬

his

olistic

done,

Product

Secretary of State; George M.
Humphrey, Secretary of the Treas¬

in¬

cluded

result?

people

billion

time in

much

as

and

are
working to compile government and more for them¬
voting records of every mem¬ selves. I want them to have the
ber of Congress. And^these rec¬ rewards of their
own
industry.

are

$300

a

that

year

In

keep.

the

presumably

generation during which

a

pre¬

mittees

ords,

our

now

to

ac¬

groups are

it is

as

we

tion

of

is

lowed

...

And, of course, the political

-

Committed

been since the founding days to a
just reward for individual enter¬

we

the

*

100 years ago, Karl Marx
that the way
to destroy

capitalism

insisted

for

which

close is the first full

a

tense

billion,

remember,

1956

The

1955

year

tory.

been

a

it.

business,

government.

is

inequitable

tory, Federal tax laws,

century, our
up, full of

National

$400

million

second

of

the entire world has been at
peace.
It has been a

al¬

discuss

to

there

Now, the NAM has historically
been opposed to
unregulated mo¬

work

top Cabinet officials, and denies nation's
defense has been weakened. Holds our real
strength is by far
more powerful than in 1952.
The

diction for the
newspaper people.
I said that business
might improve

example of in¬
the law than in

discriminatory,

justice.

Extols

•

when I first took office as Presi¬
dent of NAM, I made a little

simply

more

a

in

>

ascribed this achievement to President Eisenhower's devotion
to a durable and honorable
peace with freedom and

prosperity undreamed

Gross
to

over

that VI

because they are
high, or because they reach an in¬
defensible rate of 91% on individ¬

not

even

not

of

time

destroy

to

power

Asserting more people thoroughout the free world are now
employed in peaceful pursuits than ever before, Mr. Stassen

came

stand

fully employed,

true

recognize

business.

nopoly

is

is the power to

tax

the

—

is

taxes

tne

whispered dissent from those who
clamor stridently in the
press and
in

should
to

power

This

Ameri¬
and

Organiza¬

one.

a

it

freedom.

Federation-of Labor

Congress of

If

first

what has been

a

close
65 V2

prosperity
freedom, then we

from

destroy

coun¬

try.
can

the

quarter of

a

And

of

American

our

Americans

power,

this

facet

day-to-day life by that allimportant yardstick of freedom,

potential

the

another

measure

confinement.

and

Administration

economy could
new life.

of,

our

men

economic, and

in

For

We have

great¬

litical

most

"black-list"

Inequality of Taxation

hands

the

Yes!

seen

few

a

union

a

Special Assistant to the President for Disarmament

year

Congressmen.

amassing

in

of

of

hours,

of

we

choking

drawing to

$2,000,-

labor organizations in
Congressional elections,
now,
the forthcoming dis¬

cation of laws

to all citizens.
the

than

more

an

years

the

breathe.

by 51

expenditure of

restraint

20

in

greatly reduced—and a balanced
budget is now in sight. Some con¬
trols were
lifted, and for the first
time, business had a chance to

late

may

of

By HAROLD E. STASSEN*

those

Government spending
checked. The tax burden was
lightened.
Federal deficits were

the expenditure of millions in an
unsuccessful attempt to defeat the
Senator Taft in Ohio, to the

must

of

worked

ownership.

Stresses value of

prosper.

all
and

Disarmament and Peace

Administration

was

individual freedom.

.

there

Adminis¬

new

and

knew not which

along that did not-have its finger
constantly on the crisis button.
No longer were the odds on
public

points to large capital outlays of business as
jobs, more and better goods for more

Americans,
If

Praises

New

And then

discriminatory, inequitable, and almost

threat to freedom.

a

air

pres¬

better

assuring

<

in national elections. Calls

power

For
lived

The Outlook for

walled

were

controlled

we

turn.

way to

Retiring NAM President calls attention to monopolistic aspect
of the AFL-C10 merger and the threat to form a
labor party

We

were

The

or

feet.

our

We

cramped until

Retiring President, National Association of Manufacturers
President, Thomas A. Edison, Inc.

25

K.

mitted

for

a

free

industry

May Prosper."

America—

"So

People

—

Wallerstein

to

limited

On Jan. 2

will

be

ad¬

in
Company, 20
Clinton Street,
members of the
New York Stock Exchange.
Richard

E.

Kohn

partnership

&

The Commercial and Financial Chronicle

..

Thursday, December 22,1955

.

(2766)

26

ratios, and particularly in the Transportation
Ratio.
The Lehigh has not "created" earnings by reducing its
maintenance charges out of line with traffic and revenues. The
situation of the stock—there is only one class—is thus basically

billion,

the maintenance of at least the $1.20 dividend rate
that has been in force since the resumption of the dividend at the

Railroad Securities

consumer

road's cost

the

in

McKEEVER

Lehigh Valley Railroad Co.
considerable evidence of the easing of the pressure

is

There

Valley stock. This stock held quite steadily in the
through the late summer and properly ignored the
of the August floods which dealt relatively lightly with the

Lehigh

on

21-22

range

news

price of the stock until the latter part of September. Then and
some two months thereafter it hovered in the
19-20 area for

for

apparent

no

reason

23]/4.

to

selling.

other than tax

The

latter

of

part

Company owned 376,547 shares of Lehigh Valley.
With tax selling for this year so largely out of the way and
other large block known to be overhanging the market, it

be fairly questioned what stands in the way of the recovery
Lehigh Valley to a point more in line with the 1955 high of
25Vs. It is expected that 1956 earnings may be even a little better
of

share that is estimated for the current year, and

Almost 30% of the estimated
tax credit received in the
early part of this year, although it is also to be recognized that
some 57% of this advantage was offset by flood damage costs of

they

will

1955

net

be

quality.

of sounder

to the $1,751,000

is attributed

about $1,000,000.
The official estimate of $4 per share or a little more for 1956

It is without benefit of any such large tax
credits as bolstered 1954 and 1955 net, and furthermore, this esti¬
mate takes into account some $1.8 million annual increase in wage

is

sound

a

Continued from

figure.

resulting from the recent and pending hourly wage boosts
while it does not assume any part of the 7% increase in freight

applying for. The 1956 projection is based
increase in revenues from traffic sources, a net

rates that the roads are

21//2%-3%

a

reduction of some $850,000 in
as

interest charges and a saving of almost

much in local taxes due to the relocation of the Buffalo Terminal,

but

it is

based

also

of

road's

the

that the road will pay no

the assumption

on

The latter will probably be avoided largely because

Federal tax.

deferral

tax

about $1.5 million

of

fast amortization, or around

the $1

per

annually due to

share figure for the current

well as the tax deduction for the $1,332,000 premium on
the $1,850,000 consolidated 6s of 1989 which the road called for
payment last September at 117. This deduction is to be carried
into 1956.
Once

the

consistently

a

"black

prosperous

road when anthracite coal was

the, Lehigh Valley has been a marginal
of the last three decades. Although

diamond,"
the

for

earner

better

part

anthracite shipments still account for about 13%
the

of its revenues,

Lehigh Valley is highly sensitive to general industrial condi¬

of steel operations sharply
'affecting traffic in and out of Bethlehem, Pa. Accordingly, reve¬

tions, and particularly to the level
the sharp

1954 as against
Until recent years, j however,
trend of the Lehigh Valley has made a fairly good

suffered

nues

the

1951-53

the

revenue

first

drop to $64.6 million in

of $78 million.

average

showing relative to both the Class I total as well as that of the
Great Lakes roads. The Lehigh falls into this ICC regional group¬

to be

seems

Geneva, N. Y., with prin¬

But to many

of

these glib

us

and

a

Lehigh Valley is in good financial shape. The 1949 debt
adjustment, among other things, extended the maturities of divi¬
sional mortgage bonds which became underliers as a result of
their assumption by the Lehigh as part of the plan, and it placed
half of the road's junior general consolidated bonds of 2003 on a
contingent interest basis. The plan also set up two sinking funds
—the prior lien sinking fund of not more than $600,000 annually
and the general sinking fund of 50% of net income plus dividends
until total interest charges were reduced

to

$4,498,297

an¬

nually, which was accomplished by the beginning of 1954. The
.general sinking fund was then reduced to the stipulated 25% of
annual net plus 50% of dividends paid within the year.
of

the

operation of these sinking funds and the
application of cash from other sources the Lehigh Valley achieved
a reduction in debt that was notable not only for its
amount, but
also for the relatively short time in which it was accomplished.
•Between the 1950 year-end and the close of 1954 bonded debt
reduced

15

that the earliest bond maturity now amounts to only $2.5 million
in 1969.

along now without
interruption for more than

showing is the

was

dition.

effected

During

additions

pleted,
T951.

not

and

the

1951-54

betterments.

operations
Also

more

the biggest boom in our
we know that in the
booms have always sooner

years,

later

or

to

come

the

having

road's

period

of the road's physical

$20,158,000

Dieselization

become

current

fully

finances

on

had

already been com-\
dieselized in September
were

well

maintained

of Gloom and Doom

No Fear

should

It

probably

chapter in

clear at the outset that we are not

about

talking
1929

variety.

of

None

after

I feel

us,

we

6s at

the total cost of

amount,

or

$9,172,800, borrowing less than half of this
$4!£ million from banks.

Finances

the road
penses,
at

its $7,840,000 consolidated

are

thus not the problem of the Lehigh Valley. What
is more traffic to offset heavy terminal ex¬

needs most

and help in this direction is seen'in industrial expansion
in the Buffalo area, to say nothing of

Bethlehem, Ithaca and

enlarged anthracite operations in the Hazelton district.




A better

These

let's

take

of

build-up.

them.

of

ings have been fairly large.

this

during

system is in strong condition. We
have an impressive array of safe¬

ter

adversity — the
farm support program, unemploy¬
ment insurance, lay-off payments,
Government has

dustries

economy, and
understanding

better

deep

of

can

prolonged

a

depression.

decline larger than the gen¬

tle

dips of 1949 and 1954—some¬
more
nearly
comparable
perhaps with 1937-38 when stock
thing

prices declined 25%, industrial
production slid 20%, and unem¬
ployment increased by 31/2 million.
No, we are not worrying about
another 1929; but we do wonder
whether a fairly serious recession
be in the making.

Some

people

blithely happy

are

about the future because

impressed

growth

that

the

by

hypnotized

they

by

are

enormous

ahead

lies

American economy.
be

well

balanced

Spotlight

the

for

They

six

years,

projections

we

exception¬

high* production of durable
goods — plant
and
equipment,
housing, automobiles, and the like.
Now it is true, of course, that an
ally

expanding economy needs large
quantities of durable goods. It is
also true that vacancy rates are
still low in many localities, that
is

areas,

trend

marked

two

cars

movement to
and that there is
toward putting

strong

a

suburban
a

into every

garage—if you

them in. New pat¬
terns of living have been emerg¬
ing; and it may well be that with
the rapid growth of the middleincome
group,
the markets for
squeeze

housing and for automobiles have
taken on new and much greater

to

dimensions.
But the

the vast markets that should exist

durable

aware

of the future promise of the Amer¬

housing or to the public's passion

ican

all of

are

us

economy

—

and

speakers

can

to let

forget it.

us

be

surely

after-dinner

be depended

What is

confident

"not

on

can

more,

that

strong

growth

sustain

to

the

the

the

economic

—

our

the

and

activity

over

other

mere

hand,

we

existence of

a

big

growth which has been interrupted
from time to time by serious
are

and

for

more

car

less

volatile now than

for¬

merly, but should we assume that
it can now go only upward—and

still

left

with

set¬
the

In

fact

on

the

analyzing this
stands

out

that

Cuff

and
in these

happens that wages
tend

in

resulted

increases,
set

to

pattern

a

others.

personal incomes.

In fact, for the

past several years, personal sav¬
ings have been declining not only
in
relation to
personal incomes
but even in dollar amount.
Re¬

for credit have
far ahead of the
supply of savings.
demands

cently,
been

running

Faster Dollars

/

Second, the money supply. There
has been a considerable increase

supply—demand de¬

in the money

currency — since the
1949; but, if looked at by

posits
end

plus

of

itself, the expansion has not been

But

alarming.

that

point is

the

supply
should
not
be
at by itself.
We cannot

money

looked

ignore the factor of velocity,
rate

which

at

turning

money

has

the

been

over.

When

do

we

take

into account

picture

different. While the
money supply has been expand¬
ing fairly rapidly since 1949, its
rate of turnover has also been in¬
looks

quite

and

creasing

appreciably.

very

Recently the turnover of demand
deposits in leading cities outside
New
York
has
been
averaging

than

it

put the factors

of

25%

than

more

higher

averaged during 1947-49.
So when

to

question, the
the

durable

goods boom of the past six years
has been accompanied by a huge
expansion of debt.
The rise in

public borrowing, including state
and municipal
been

wage

you

supply and money turn¬
together, they multiply out

money

Boom

know

big growth potentials in 1920 and
in 1929 too. Indeed, our entire his¬
tory has been one of remarkable

We

cars

The durable goods section
of our economy has always been a
volatile one. Perhaps it has be¬
come

so

industries

over

growth potential does not guar¬
antee stability. After all, we had

backs.

more

per car.

steadily?

ahead.

years

On

that

factors

for

it

has

industries

substantial

this factor of velocity, the

question remains: Is the

goods boom durable? This
question cannot be answered by
pointing
to
unfilled needs for

Now

these

a

1950

that eco¬

see

can

chief impetus from the

there

turnover,

Moreover, personal savings since
have not risen
as
fast as

Durable Goods

expansion has received its

of

seem

on

higher rate

higher multiplier
effect, than they would ordinarily
have.
Also, rapid expansion in
of

for

Looking at the record of these

can

Projections Not the Answer

so

themselves out in the
stable,

a

economy.

nomic

they do not necessarily rule

may

of

form

as¬

considerations rule out

and

a

tries probably have a

with little

chap¬
It is clear that,
as
of today, the forces operating
throughout the past six years have

have
how

we

policies

and fiscal
effectively.

used

out

Dollars injected into these indus¬

Many

began in 1950.

not worked

the construc¬

(including

industry) and have stimulated
this volatile part of the economy.

tion

responsibility to help sta¬

bilize the

But

continued

have

people assume.

some

During the past six years, most
savings dollars have been chan¬
nelled into the durable goods in¬

interruption since the new

against

the like.

common.

—

are

to be the stabilizing factor

proven

Now,

trends

in

a

1927-29

that

How¬
-normally large
boom — for example,
and
they
have
not

savings

ever,

was

is structurally far more stable
than it used to be.
Our banking

omy

much

have

Savings Helped?

Have

old-fashioned

an

brief look at each

a

First, the savings picture. It is
true that since 1950 personal sav¬

in 1954,
new phase,

have moved into a

all interesting points

are

so

brief readjustment

consisting

anticipation of growth—will help

in the road's decision to redeem

a

of

debt is not dangerously

personal
high.

peacetime boom. These two phases

and

that the present level

(4)

and

this

fears another holocaust like
that. We all know that our econ¬

sure,

guards

supply, (3) that it has not
inflation,

resulted in overall price,

new

a

for

it; such

been accom¬

has

it

that

money

economic history.

rearmament

the

the

of

collapse

a

(1)

argu¬

advanced

been

panied by a large volume of per¬
sonal savings, (2) that it has not
caused a huge expansion of the

the Korean War and

stimulated by

cf its former Buffalo terminal

factor

our

write

to

of

array

complacent about

being

chapter is going to turn out.

new

made

be

we 1

properties to the New York ThruAuthority, cash items totaled $14,300,000 on August 31 this
year as against $11,058,000 a year earlier while net current assets
showed an even larger gain to $12,489,000 "as against $7,393,000
on
Aug. 31, 1954. This comfortable position was undoubtedly a

started

we

During the first phase of
chapter, the economy

throughout this period of heavy expenditures, and have since been
built up to higher levels. With the help of proceeds from the sale
way

has

to¬

economy

our

new

eon-

spent

was

ments

as:

What concerns us now is how

end.

an

examining

1950

creditable since the debt require¬

at the expense

A

therefore, we should regard
what happened during the 40's as
being largely ancient history. In

history; and

past,

whole

stood.

day,

by 1965 or 1970.

This
ment

In

under¬

does not seem to be widely

question, we
what has been

analyze

in

prices.

boiling

been

much

from

$109,424,000 to $67,593,000, or some 38%
and total funded
debt including equipment obligations
(which
latter showed a temporary increase in this period) was reduced
from $134,912,000 to $88,669,000.
The upshot of this operation is

as¬

deed, they are disturbingly remin¬
iscent of 1929. Our economy has

These

The

to

import of this rapid
personal indebtedness

real

increase

this

answer

need

In¬

reassuring.

not

are

surances

be

area,

To

are

monetary

network serving the Wilkes-Barre-Hazelton
branch to Philadelphia.
a

was

personal debt has been respon¬
for a large part of the ex¬

optimism we find among some going on in our economy during
the past six years. The decade of
people. Now, as always during a
boom, we have with us prophets the 40's was dominated by the
By the
of perpetual prosperity. Industry, effects of World War II.
they say, is making giant strides end of 1949, however, we appeared
to have become fairly well ad¬
into a new era—this time the real
thing, atom-powered and jet-pro¬ justed to these wartime influences,
pelled—and nothing can possibly partly through expanded produc¬
tion
and
partly through higher
go wrong.

cipal branch mileage including lines to Rochester and Canastota,

alone

much more
this inflation

so

fast.

Start With 1950

in sharp
contrast with the happy-go-lucky

N.

result

owed

In addition,

so

question as to whether we are
now heading for such a setback.

and Doom

misgivings

These

a

a

many

$65

before

Never

pansion of borrowing by business

How long

paper.

on

Prophets of Boom

Bethlehem and Wilkes-Barre, Pa., and

As

118%.

page

this thing go on?"

can

sumed

paid

or

The

ing although it describes the road's territory only vaguely. The
main line of the road extends from Jersey City to Buffalo via

Y.,

has

billion
so

about

risen

debtedness

Valley stock to the 25 area where

Heading for Trouble?

Are We

year, as

over

$17 billion or 100%; and personal
mortgage debt has increased $47
billion or 126%. Total personal in¬

concerns.

costs

on

credit has increased by

consumer

sible

may

per

mortgages.

recovery

Pennsylvania

than the $4

residential
Since the end of 1949,
and

credit

of

76,547 shares at 21% was accomplished on Dec. 5. It was not stated
who the seller was but it is noted that as of the 1954 year-end the

no

namely,

indebtedness;

have

and on Dec. 1, Lehigh Valley rallied
Taking advantage of the firming, a "secondary" sale of

November brought

has

CHRISTMAS''

"MERRY

Valley and no real pressure was evident in the market

Lehigh

key factor in this picture
been a phenomenal rise
in

personal

beginning of 1954 is a reasonable expectation. The 5V2% yield
that it produces at the current price of about 22 is on the low
side considering the speculative
quality of the stock, but an
increase to a $1.50 annual rate may again be foreshadowed by
j recovery of the price of Lehigh
it was at this year's high.

increase.

enormous

an

The

and

sound,
By GERALD D.

expanded by almost $160

has

ness

should bring automatic improvement

level of traffic and revenues

obligations, has not

great; but private indebted¬

a

very

monetary

substantial

expansion over the past six years.
Not

or^ly are there more

but most dollars are
around
more

faster,

work.

facturing

doing

being made

For

35%

to do

example, manu¬

corporations

about

dollars;

being handed

are

more

today

business

Volume 182

Number 5492

.

.

The Commercial and Financial

.

(2767)

dollar of C3sh

per

hand

on

slack in the

than

they did during 1947-49.-*
■

.

•

...

.

,T

Significance of \eIocity

*

erate

its

to

velocity.

A

ply should

be

not

combifted 'with' especially
tendencies: at * in several

; ences

on

posits,

an

expansion

regarded with

has

devoid

means

rnents,

as

of

by

people

ing

we

But

operat-

are

they could

created

be wrong.

We

divergent influ-

dangerously

the volume of bank desupply will
not
extraordinary increase

time.

high at the present
pointed out that peo-

is

It

pie's incomes have risen substan-

tially and that their debts

the year.

excessive

purchased with funds other-

^fie
This

have

been

quickly

reflected

is

when

related

to

per-

put to work.
the sharp rise

in

<

'that

it

the

well

situation

in

was

be

may

to

during

recall

high»

however,

omy,

is

expansion of the money

but

by

velocity of

increase

an

sun-

Some

in

the

turnover.

money

.

for the simple
from the standpoint

stability of the

not

econ¬

point at

main

uie

jn

inaexes

of

hapS for

sen-

After

back

the

by

out¬

levels.

Other

June,

since

since
For

serious

will

the

be

shock

when

to

this

answer^wili
factors:
what

on

(I)

depend

on

is.: done

to

occ^
cushion

ing rtevelonments

mg Gevel°Pments-

big reason for the,".
Wilt We Adjust Smoothly?
overall stability of
prices over the
As to the fkfft of these factors
past few years is that agriculture the
longer the rapid increase in'
has still been 111 process of adpersonai debt continues, the more
justing to postwar conditions Deabrupt
the eventual change is
clines in agricultural prices have
likely to be. Also, the longer it
masked the strong upward trend
continues, the greater the danger
in
many other prices, sooner or
^hat other imbalances may
de¬
bater, farm
prm^
stop de- veiopi it woulci be less disruptive
clining. .When that happens,. vthe
t0

tS
1Z* °fber Parts
"'5 the economy will be more evident m the general
level.

price

.

■

than
later

TnfUttinarv

of

'.Otherwise

more"

i* have
receded

after

:

debt

in

have

to

when

on

condition
abrupt change

an

our

economic health

Korea

pressures"'more reasonable Pace. the betterwould"' ;Wi" we achieve a fair'y orderly

were

sho/taees' transltion

overcome

t0 a s!ower rate of debt
It 'exp.ansicn that wi!l sustain Pros"

Perity and growth but will not be

pr?ce movemrat?ln

recent

have adverselv affected

taB-HoMO* There are

years

manv neo

•

dicatl0ns that w0

Mli

:

extmXs

"•

buyers

to cite obvious

••tSllcnaof

others

as

wSh

of

mortgage

some inmay- In the
credit,

infla-

ttoBar* .'tendencies have recently
' ?b™»' sam6

abatefment'-*>-*»

seen

and

common

sense, there is no reason

why this
Perhaps there is
some danger of slowing down too
fast, but there would probably be
be done.

cannot

Allen,
of

one

the

principal
stockholders
in

the

pany,

is

com¬

of

tee

trus¬

a

Fox-

croft School, a
member of the

Directors

the banking system, whereas most

later.

lege, and

credit

nonbank

lenders.

the

influence

policy

is

of

Federal

extended

by
Consequently,

Federal

Reserve

personal indebtedness is

on

etary

policy

garded

as

should

precise and

a

be

not

re¬

efficient

for dealing with the pres¬

weapon

To
been

sum
on

up,

our

bit

a

of

has
So far

economy

of

a

spree.

will

depend,

too,

expansion.

this

As

adjustment

there will undoubtedly
application of

proceeds,

stimulants—demands
ductions

and

ernment

for

residential

if

business

in

tax

increased

re¬

gov¬

spending and stimulation

of

serve

for

construction.

recedes,

policy

will

the direction
it

Also,

Federal

Re¬

doubtless

of

shift

ease.

well be that

may

stimulants will be

dur¬

ing the adjustment period. How¬
ever, if stimulants are carried too

far,

we

whirl off

may

extension

of

on.a

new

the

boom, and one
more inflationary than the present
phase. This would mean building
up to worse trouble later on.
Excesses Could Develop
a

while, various excesses could de¬
velop which might lead to trouble.
One

danger is

in

tuations

our

As yet,

economy.

there has been little evidence that
business

inventory

becoming

Eisenhower

policies

speculative.

are

This

still

for

Foundation

the

restoration and refurbishing of the

in

good

But

morrow.

if

party and keep
for

more

fects

the

condition

to¬

prolong

the

we

having just one
road, the after-ef¬
on

Vice-President

a

Dillon, Read & Co., and

Chemstrand
Corp.,
leum-Nairn, Inc.

be very unpleasant.

may

Mr. Belmont is
of

a

di¬

rector of American Viscose Corp.,

and

Congo-

Our Ultimate Objective

In

concluding,

perhaps

we

Merrill Lynch Adds

should

look at our economy in
broader perspective. All of us are
aware of the tremendous achieve¬
ments of American

industry. These
are not to be measured simply by
material standards; they are im¬
portant because they have made
it

possible for most Americans to

live

more fully
and more mean¬
ingfully.
Economic
progress
is
contributing to a finer America.

As for the

confronted
tunities.
are

we

toward
that

future,

with

we are

clearly

enormous

oppor¬

these

In

United

actually well
the

curse

of

poverty,
Over

CHICAGO, 111.—John F. Fox is
Fenner

of

man.

ahead, if we keep our
economy functioning properly, we
can
further improve the living
raise

all

Americans

our

Beane, Board of Trade

&

Building.

With Standard Bd. & Shr.
(Special to The Financial Chronicle)

ROCK ISLAND,

is

Brotman
Bond

now

Share

&

111.—Ronald D.
Standard

with

Co.,

Rock Island

Bank Building.

With Hamilton Managem't
(Special to The Financial Chronicle)

the decades

of

Lynch, Pierce,

Merrill

with

now

ouf way

abolition

age-old

States,

on

(Special to The Financial Chronicle)

and

standards

of

health and education.

It is

Mass.

—

John

W.

Smith, Jr. is with Hamilton Man¬
agement Corporation, 127 Fre¬
mont

Street.

This is our

vision

BOSTON,

us

to

for the future.
make

it

come

up

to

true.

With American Sees. Co.
(Special to The Financial Chronicle)

the

possibility of
inventory speculation, which has
frequently accentuated the fluc¬

member of the com¬
appointed by the

five

Kansas.

be

greatly

If the boom does continue for

a

of

Eisenhower homestead in Abilene,

some

desirable

mittee

August Belmont

of

Col¬

Barnard

should

upon

be pressures for the

Associate

the party has not gotten very wild.
If we taper off fairly soon, we

ent situation.

GREENLEY, Ohio

Joins J. Logan Staff

Kittleson

(Special to The Financial Chronicle)

Securities

PASADENA, CalifViolette V.
is now with J. Logan &
Co., 721 East Union Street.
O'Gara

1515

is

now

with

Company

Eight Avenue.

viously

—

with Glenn

,

Robert T.
American

of Colorado,

He was pre¬

Kolb & Co.

of Denver.

could

happen, however, especially
are
increasing signs of
shortages and higher prices.
if

there

MARKET MILEAGE

Unwise

policies with respect to
wages could also have a seriously

unstabilizing influence.
evidence
creases

have

suggests
the

over

exceeded
in

crease

Available

that

the

in¬

wage

past

year

may

in¬

average

productivity.

increases

wage

Too rapid

could, undermine-

economic stability and complicate
thd problems of the readjustment

period.

prices

when the

:

i

slow-down

m-i'-may he less vigorous. The soon
±ne sooner
debt expansion slows down to a

n^oraii

anL

some

generally "strong

jn

js

Inflation at Wark
v
*

have

. expansi0n now. while our economy

be

to

adjust smoothly.

restraint

use

invest ment

companies.

Alumnae

-

'

we

will

we

and

the

of

ing
unsustainable
trends
and
thereby
risking
worse
trouble

0n

on whether it
js aggravated by other unstabiliz-

a

If

States

closed-end

serve
policy is that it operates
primarily through its effects upon

the abrupt-

its impact, and (3)

1950,

whether

standards

with which this shift

ness

should be taken into account.

Moreover,

pres¬

along the road we
to have to do some

United

country's larg¬
est

Mrs.

acute.

more

of

the

Now

inflation.of personal debt

The

P

inflation

how

economy

three

^tnntfnnPe\nHe-fv1Veth°n i Pr/hf
today,
therefore,
the

price

is

raPid

slower-mov-

situation

goods industries and

be¬

are

one

greater danger in further sustain¬

of

fiprplpritp<?

began to advance and

haye continued interruption.
to rise ever
without much

repercussions in

prosperity has been powered
increase in personal bor¬

our

S™LUP, (r„aPiC"y f"!

prices

be

to

an

tion

subsequently reacted to somewhat
g

say

rowing at a rate that cannot be
sustained* indefinitely. The ques¬

little

a

Korean

durable

ent

break in June of 1950, some sensi-

lower

can

throughout the economy.
To put it differently, our

In the first place, it is mislead¬
ing to talk about prices since 1951

looking

bound

the

proof

as

positive that nothing can be

further.

possibly

one

maintained—pernumber of years—but

a

are

ously wrong. This argument also
calls for analysis.

without

No

s00ner or later it inevitably must
siacken. when that happens, there

overall

1951

since

cannot

years

i°nS thi? ™te °f in"
might be

crease
con-

sj/Jerations as. being theoretical.
point triumphantly to the

price

recent

continue forever.

,

They

Stability

high/'its rate of increase

just how.

people dismiss these

.comparative

'-

limitation

Much

"too

now

0

.

Federal

accomplish.

The crucial point is this: regard-: what is done to cushion the ad¬
of whether personal debt is justment to a slower rate of debt

What About Prices?

..

■

less

.ply

■

be

can

the

pro¬

directors

Foreign Securities Corporation,

Re¬

issue. /

an

.

what

our

trends

going
adjusting. It remains

Fortunately,

here,

that

durable goods and the stock mar¬
ket inflation were financed not by

*

it

One

in

can

these

are

largely inairect, delayed and un¬
do not need to try certain. This being the case, mon¬

of the future

parallel.

that

one

night.

we

settle

During that period, the boom in

.

is

all

reason

1927-29

respects

some

«too

argUed

If these points seem rather aca-,

rdemic,

question of whether
debt has now become

personal*

faith

much

Reserve

personal

this

Now

.

borrowed

velocity figures.

2

•

that

been

First,
unsta¬

Somewhere

be in danger of placing too

may

not

are

discretionary income.

w,^ereas most °f the

dollars

have

Dorothy Dillon Allen and
August Belmont have been elected

being
capacity, the problems

by

coming

know

full

at

our economy.
Now that
ductive
resources
are

Complications

Elects Two Directors
Mrs.

strained to

Possible

to

seem

-

that

certainly, hope they

will turn out to be.

any-

inflationary ele-.

some

Now

assume.

been

not

However, some of the govern- sonal disposable income, or espement securities sold by the
banks-cially if related to so-called
were

occur

developed in

and all cf us,

short, the present period of

-

sup-

money

show
for

these

to

were

at the same time.

both^mortgage and instal-1

from experience that selfcapacity, inflationary"
pressures are becoming intensified, correcting tendencies are not al¬
the fact that the increase in bank
r
'
ways reliable, to put it mildly.
loans this year has been: largely ^ ^Deceleratioii Inevitable
Moreover, even the most skillful
offset by a reduction in bank holdNow we come to the argbment monetary
policy
cannot
assure
'ings of government securities.a As that personal indebtedness is not; economic stability.
Indeed, we
result of

they

Need for Restraint
clearly evidenced in re-* ment credit will suffice to bring1
by increasing short- * about a fairly satisfactory balance£
What can we conclude?
ages and price advances for more in the economy in the not-foo-dis- * it seems clear that some
tant future.
and more products,
They may be right;' bilizing trends have

complacency when money velocity
:is rising
rapidly at the same time,
>
For
instance, some observers
seem to derive great comfort from

a

if

areas

cent months

mod-

increase in the money

This

policy

self-correcting

* work in

has been

-

■attention may have been given to
the
cf
volume
and not
money

enough

the- the

up,

situation is quite different.

.

All this suggests that too much

•

Now that; monetary

economy.

this slack has been taken

27

The stock market is another po¬
tential danger spot.
trouble

again.
since

the

in

Much

ing

back

and

the

the

of

has

1942

the higher

It has caused

past

and

could

market

been

rise

justified

by

price level, the plow¬

of

corporate

enlarged

earnings,

productive and

earning capacity of American in¬
The market today is not

dustry.

floating
was

on a sea of credit as it
in 1929. With margin require¬

ments

it
to

^1920 s.

Then as now the stability

'rpa^C€fnr^r^?H^^
rosnect

v

We have
in

pace

prices

now

abates,

will

the

pressure

increase.

During

large parLof the
-

past two

this

been

pressure

has

by the fact that

we

be.

subject to

explosive

regulation,

than

it

used

.

Nevertheless,

even

if the

mar¬

ket

on

a




can

that our credit
machinery is operating as

control

it should
Can

some

you

be pretty sure

be

to

combat inflation. We

quite confident that it will

years,, continue

alleviated

have had

p!eserve,

idsm of the

reached the stage
the present boom
where, unless

its

totais

now

less

is not fantastically high, it is
In addition, - the Federal Rei". 7^' serve's policy of monetary re- certainly in very high ground and
,5?
straint has helped to dampen in- the possibility of a substantial
20 s con- 0atjonary pressures.
Whenever break cannot be ruled out, espe¬
°f unsta" the inflationists step up their crit-

aS43

fT
.2 itowm.,/ar
Law
s/
the
hflillL olnl. fn ?went
bilizmg ti ends m the economy.

•

thfl

is

to

be

helpful

over

the

observers

if

prices

believe

that

go

much

higher.

via

Sehr
a

sends

134-foot

an

order

conveyor

slip on its
belt in the

way

120

at six miles
Broadway

per

head¬

quarters of Karris, Upham & Co., nationwide investment broker¬
age

firm with 35 offices coast to coast and members of the New
Stock Exchange.
Operated by 50 trained specialists dur¬

Such

a

decline would undoubtedly

York

have

a

depressing effect

ing market hours, the belt carries transaction notices at 8.5 feet
per second to seven different color designated stations, enabling
the firm to quickly and efficiently execute New
York Stock

on

spend¬

ing both by business and by

many

individuals.
Excesses in

period ahead.
Some

cially

Ellen

hour

could

have

any

serious

of these areas
consequences,

Exchange round lots and odd lots, American Stock Exchange Se¬
curities, out-of-town Exchange orders, over-the-counter listings,
bonds and

commodities.

28

The Commercial and Financial Chronicle

(2768)

chell

resigned all his connections

with

the

in

News About Banks

1935, at the age of 58, opened
own firm, C. E. Mitchell,
Inc.,

his

financial
that

CONSOLIDATIONS
NEW

BRANCHES

NEW

OFFICERS, ETC.

counselors.

In

June

he assumed the

year

of

Chair¬

manship of Blyth & Co., Inc. and

Bankers

and

REVISED

National City Bank and

started
him

CAPITALIZATIONS

comeback

a

the

which

admiration

won

the finan¬

of

An

oversubscription

stockholders
Trust

of

Long

of

Island,

for

N.

Election of G. Edward Kattel as

and

Vice-President

Executive

which merged with
Manufacturers Trust in 1928. He
Bank

tional

an

Assistant Vice-

President in 1947,

Director

Harvey V, Delapena as a

Auditor in 1949,
1954.

appointed

was
and

stock

offering of 10,000 shares, has
been
announced by Fred Hainfeld, Jr., President. A total sub¬
scription of 15,554 shares was re¬
ceived

from

warrant-holders

heavily to the growth of Blyth &
Co., one of the important invest¬

of subscriptions

ment

banking

firms

appointment

Austin

as

David

of

*

of

New

York,

is

gan.

after

Austin

Mr.
33

recently retired
with Manufactur¬

years

Trust

Company where he

Vice-President

in

was

Charge

of

Control.

Branch Loan

and

Harvey

Empire
the

of

Grace

New York
35

by

National

Ralph

Bank

announced

was

S.

Dec.

on

Stillman,

of

Presi¬

dent.
Mr.
Kattel
assumes
the
number two post in the bank fol¬

lowing

30

tive

of

years

the Grace

service

Vice-President, he will be in

charge

of

the

bank's

operations. Mr. Kattel
Vice-President

a

with

organization. As Execu¬
general

was

in

elected

1951

and

a

York

Trust

election

with the Grace Bank for 30
years,

serving in various capacities.
is in

He

charge of business develop¬

ment.

Mr.

nounced

Stillman

also

appointment

of

an¬

William

De

Verna, Gordon Stokes, John R.
Wetzel, Jr., Archibald F. Mathers
and Nicholas S.

Cashiers.

Ryan

Edward

as

H.

Assistant

White

was

Dec.

on

William

of

of

H.

New

20

the

McElnea,

Jr. and Peter L. A. Folliss to Vice-

Presidents.

Mr.

McElnea,
for¬
Vice-President,

Assistant

merly
will

continue

Chemical

with

the

bank's

Division, while Mr. Fol¬

liss, formerly Assistant VicePresident, will continue in charge
of special investment situations in
the international field.
❖

renovation

Directors

Hs

Bank

of

of

addressing the guests at the
party, George C. Textor, Presi¬
dent, said, "As some of you may
know, we have had an office in
Grand

mended

November,

1928.

moved

to

since

with

the

it

stock

Royal

has

Safe

a

of

of

merger

Deposit Co.,
Dec.

on

Assistant Trust Officer.
*

Hs

#

The First National City Bank of
York
announces
the
ap¬

New

office

had

become

pointment

of

a

two Assistant

four

Vice-President,

office space of 5M>

14

by

Vice-Presidents and

Assistant

Cashiers

regular

at

a

the

to

on

Domestic

Di-

Gardner

Richard

E.

F.

Theodore Gardner

S.

Smith

Vice

were

named

Presidents.

-

Mr.

Michalis

and

with

of

1,000 feet from here,
the

center

of

executive

ficers

District.

held.

If

Mr.

Smith

are

both

John J. Reynolds were named As¬
sistant
Cashiers in the Finance

increase

the

to

and

their

The

death

chell,

*

appointed Assist¬

was

Cashier

and assigned to the
Utility Department, Special

Jr.

Group.

Clifford Curtis

named

was

Cashier and

Assistant

assigned to the Cen¬
$

Irving

«

Trust

$

Company

announced

Dec.

on

of

New
the

16

promotion of Gordon T. Wallis to
Vice-President.
sistant

Formerly an As¬
Vice-President, he is in

charge of the pension and profitsharing activity of the Personal
/

Trust Division. He
joined the staff
of the Irving in 1940.
*

Edmund

%

*

Leone, Comptroller

of

Manufacturers Trust Company, of
New York, has been
appointed a
member

of
the
bank's General
Administrative Board and a Gen¬

eral Administrative
announced

on

reserve

ac¬

of

Chairman

Dec.

14.

He

take

customers

Dec.

years

ago

began
clerk
Co.

on

for

the

had

E.

have

of

been
for

ill

of

Officer, it
21

was

by Horace
C. Flanigan, President. In
1924,
Mr. Leone joined the
Capitol Na-




of

pany

was

born

the

career

Western

North

America

York; in 1911 formed his
and

of

78

as

was

the National

New

York.

President
Bank

and

Electric

of

New

own

se¬

In

of

in

& Co.;
elected President

City Company of
1921

the

he

became

National

1929

was

City
made

Chairman of the Board of the Na¬
tional

for

the

added

branch

and

space

tomers

fu¬

and

officers
the

to

we

*

upstate
anticipate that

*

Board

of

Savings

announced

quarter

their

the

in

are

Bank

of

of Cen¬

New

York

Dec. 13 that for the

on

the

annum

all

on

bank

rate of

deposits

which have been in the bank
year

or

The bank

more.

one

will

pay

City

lished
Bank

estab¬

its trust affiliate the
City
Farmers
Trust
Company,

as

formerly the Farmers Loan
Trust Company. In 1933 Mr.

and

Mit¬

will

be

to

allotted

of

to

continue

to

compound

interest

quarterly and to pay interest from
day of deposit. The Trustees also
pointed out that more than 80%
the

for

Central
office

higher rate of 3%
the

current

Savings

at

73rd

has

surplus

stock

the

issue,

current

to¬

stock

the

of

bank

totals

now

$2,500,000.
It
is estimated that
capital, surplus, undivided profits
and

31

valuation
will

by

reserves

aggregate

Dec.

approximately

$3,300,000. The proposed issuance
of the additional stock

in

Nov. 24

our

issue,

*

noted

was

page 2200.

#

and

Street

uptown
Broad¬

and

way

Union

Square

office
at 14th Street and 4th Avenue.
a

*

the

Board

ciprocal

Briggs
Dalzell

and

President

Re¬

Managers, Inc., and F.
Dalzell, President of the

Towing

Co.

have

elected trustees of Dollar
Bank of the

is

of

been

Savings

City of New York, it

announced

by Robert M. Ca¬
President of the bank.

tharine,
Mr.

Merritt

the

Advisory

is

also

member

a

N.

Mr.

Y.

The

County

White
is

Marron

Plains,
of

manager

the 355 South

Broadway, Yonkers,
Midgley
manages the Hastings-on-Hudson
office of the bank and Mr.

office.

Mr.

Marron

has

been

At

meeting

a

with

1927,

County
Trust
since
Midgley since 1948.

Mr.

14 direc¬

Office

Corn

of

Exchange

the

of

Bank,

etc.

number

a

of

other

a

Mr.

director
or¬

It

is likewise made known that

Weiss

Assistant
lar

been

Vice-President

Savings

New

has

York,

nouncement

Bank

of

according
this

the

to

week

elected

of

22.

of

record

According to

Dec.

on

statement

by
Andrew Wilson, Chairman of the
Board, the dividend is the bank's
181st

a

consecutive

distribution,

maintaining a string that started
in 1904, the year after The County
Trust
Company was 'organized.
Mr. Wilson said it
the

Dec.

14

dividend

meeting

18.

the

on

share for
will be

on

meeting

Previously approved
the stock dividend

directors,
be

that stock¬
a 5% stock

their annual

at

Jan.

on

decided at

was

holders would vote

basis

20

every

of

one

new

held and

now

payable to stockholders of

record

at

Feb.

In his

1.

the

close

of

business

statement, Mr. Wil¬
pointed out that during 1955

son

the bank's deposits have increased

substantially
$50

and above

over

some

million

acquired through
The stock dividend, if
approved by stockholders, will be

County Trust's fourth in
ber

It

will

as

many

the

increase

num¬

of shares

outstanding by 63,372 to 1,330,822. At $5 per share
par, the value of stock outstand¬
ing following the stock dividend
will

be $6,654,110.
*

tional Bank
with

an

by

of

the

and

tional
with

the

stock

of

Washington

Bank

of

County

Granville,

the

Na¬

N.

Y.,

effective

$100,000, be¬
Dec. 2, under

on

charter and title of

National

Y.,

$1,000,000

stock of

common

Bank

effective

the

of Glens

date

of

First

Falls.

the

At

consoli¬

dation the enlarged First National
Bank of Glens Falls had a capital
of

$1,187,500,

in 47,500

shares

of

stock, par value $25 each;
of
$1,187,500
and
un¬
profits of not less than

common

surplus
divided

$970,000.
H.

an¬

In August
1955, the bank increased its capi¬

tal

stock

shares

10,000 shares

which

to 120,000
outstanding at

are

the present time with a par value
of $25 per share. The dividend is

payable Jan. 3, next, to the hold¬
of record

ers

Dec.

on

Hs

*

Stockholders
National

21, 1955.

Hs

of

Bank

Market

and

Bank and Trust

Street

Tradesmens

Company, both of

Philadelphia, at separate meetings
Dec. 14 approved plans for the

on

the two institutions. It
expected that the merged bank,'
retaining the name of the Trades¬
merger of
is

Bank

mens

and

Trust

Company,

will begin operating on Jan. 3.
It is announced that it will be the
fifth largest in the city and the

1955

largest in the state, with
assets

of

as

Nov.

30,

of $302,780,000 and total de¬

of

$261,200,000.

Reference

the ^merger plans appeared in
issue of Sept. 29, page, 1316.

our

As
previously
announced,
R.
Livingston Sullivan, President of

Market

Street

of

Board

the

will

be

Chairman

the

of

combined

bank, and James M. Large, Presi¬
dent

C.

of

Tradesmens
in

Bank

will

that

position. Percy
Jr.,
Chairman
of

Madeira,

President
National

of

on

Jr.,

Rockland-Atlas

of

Dec.

Boston,
19

Mass.,

plans for

a

office at 32 Huntington Ave.,
in the Copley Square Building, to
be

opened

Copley

about

Square
to

be

an¬

the

County

is

the

opened

*

Following

Feb.

a

Directors

Trust

1.

the

*

third

since

new

*

the

Company

Worcester

of

bank

Wor¬

cester, Mass., President Edward L.

will

be

at

Hs

H:

Hs

Harry T. Kilpatrick, Vice-Presi¬
dent in charge of the
Correspond¬
ent Banking Department of Girard
Trust

Corn

Exchange

Philadelphia,
Dec.

31.

will

Mr.

Bank

retire

of

of

as

Kilpatrick has been

with the bank since 1929, at which
time he went to Philadelphia after
service
with
the First National
Bank in Atlanta and the National
Bank

He

of

Commerce,

Tampa,

responsible

was

Fla.

for

building
the Correspondent Banking De¬

up

partment in the Girard Corn Ex¬

change.
dent

Geoffrey S. Smith, Presi¬

of

Girard

Corn

Exchange,

said that the bank plans to expand

correspondent

having

bank coverage by
Vice-President in charge

a

of this

activity in each of its geo¬
graphical
divisions.
The
Vice-

Presidents in charge of these ter¬
ritories will be George R. Clark,

Floyd
A.
Crispin,
Harold
W.
Hogeland and Robert R. Williams,
Jr.

These

men will be assisted
by
Cordner, L. Warren El-

Lewis G.
and

James

F. Feeney, Jr.,
Vice-President,
plus

additional
added

officers
this

to

who

staff.

will

be

H.
Brown, Jr., Executive Vice-Pres¬
ident

Girard

of

George

Corn

Exchange,
responsibility
activity.
In addition, Charles E.
Baus, As¬
sistant
Vice-President, who has
will

for

have

over-all

correspondent

been

head

partment,
time

to

of

bank

the

will

servicing

accounts

at

Transit

devote

the

all

De¬

his

of

correspondent

bank's

Main

Of-

ing.
Mr.

Kilpatrick said he expects

after the first of the year "to de¬
vote my time exclusively to re¬
He

is

Association

Bankers

and

capacities

on

is

has

member

a

of

Reserve

served

tees of bankers'

in

of

City
many

commit¬

numerous

organizations

over

the past 25 years.
H=

The
of

*

open

Philadelphia National Bank
and

dedicate

banking

home
Streets

cording to
on

*

Philadelphia, Pa., will officially

Chestnut

1952.

regular meeting of
of

positions. The main office
merged

Broad and Chestnut Streets.

This

office, Mr. Hage¬

reported,

office

of

the

Hagemann,

the

Bank

Vice-President, will continue

in those

tirement."

*

*

Frederick

Mr.

Catharine, the bank's President.

cents

share

nually, which have been paid for

Assistant

Glens Falls, N.

of

common

Dol¬

City

62^

per

the past several years.

well
Hs

H:

A consolidation of the First Na¬

mann
an

of

tive

share to be paid Jan. 16,

stockholders

new

Robert

$2.50

cents per

to

announced

marine

rate

or

Tradesmens Executive Committee
and Warren H. Woodring, Execu¬

46th

Chemical

Dalzell is President and
of

the

of

per

for the quarter
This is the equiv¬

the

at

share,

continue

Dec.

on

divi¬

a

cents

tors of The County Trust Company
voted a quarterly dividend of 12V2

❖

Street

Board

dends
per

combined

of

of

70

alent of $2.80 per share
annually
and compares with
quarterly divi¬

to

Treasurers

Company

that

of

voted

was

seventh

*

rate

ending Dec. 31.

sistant

came

*

Schuyler Merritt II, Chairman of

share

posits

Trust

announced

the

at

George Marron and Fred W.
Midgley, Jr., have been made As¬

per

quarter.

an

Clifford

their

dividend, bring the total of shares
outstanding to 112,000. Capital and

years.

one year. The Trustees added
that it is the intention of the bank

Secretary and Fred A. Hanken

and

those

subscribed

fraction

with

than

tional City Bank entered the then
unexplored field of bank credit to

borrower

of

mergers.

ganizations.

small

gether

quarterly dividend at the rate
of 2%%
per
annum
on
savings
which have been on deposit less

Bank, National City
Co. and the City Bank
Farmers
Trust Company. It was under Mr.
Mitchell's guidance that the Na¬

the

95%

offered,

who

additional

will

Trustees

than

which

Thursday, December 22,1955

.

dend

oversubscriptions it is announced.

by

ending Dec. 31

per

head¬

Hi

will pay a dividend at the

3%

cus¬

affiliated

Midland Banks in

they will make this
quarters when they
City."

tral

desk

of

use

11

our

of

have

room

for the

New York and

The

who

staff

additional

conference

a

from

Marine

a

firm, C. E. Mitchell

in 1916

ade¬

present

Chelsea, Mass., and

Chicago, becoming Assis¬
Manager about five years

curities

to

our

a

than

more

more

small

a

The

the

of

additional

been

Mit¬

Board

in

tant

in

allow

and

for

space

ceive

announced

was

business

with

of

some

facilities

care

*

in

his

of

ture growth which we anticipate."
Our new officers' area provides

annum

the

Mr. Mitchell

year.

housing

area

eights,

shares

of all money on deposit would re¬

Charles
of

Blyth & Co., Inc.,
on

based

later. In 1907 he became Assistant
to the President of the Trust Com¬

tral Atlantic District.

York

ef¬

H:

a

Wood,

take

salaries

H. O'Brien

Industries

when

ending.
H:

were

only

large percentage
by present stock¬

shares

additional

by

period.

basic

to

10,000

a

circulatory ailment

ant

and

employees,

respective

year now

we

companies

its

expand

quately

10

10% bonus to all of¬

Companies Department of the
Special Industries Group. Thomas

Public

each

$1,250,000.

a

an

offices

greatest

issue, at

for

Hotel, Mr. Barber announced the

Indiana-Ohio-Michigan
Anthony C. Howkins and

the

stock

new

share,

payment of

and

Assistant

of

Each stock¬

At a Christmas
Party of the di¬
rectors, officers and clerks of the
bank,
at
the
Concourse
Plaza

President, and
Michalis

to

e

was

Clarence

stockholders
25.

recommendations

count to

Vice-

named

now

cided

E.
r

the

per

these

bank's

vision.

to

of Jan.

fect, the new caiptal structure of
the Royal State Bank will be
$1,500,000 in capital and $2,500,000
in surplus. The directors also de¬

assigned

Theodo

paid

as

shares

All of

the

record

$16.50

officers

are

ing, said Mr Barber, the dividend

shares of

in g
of the
Board of Di¬

rectors

the

holder, in addition, will be eli¬
gible to purchase one and a half

meet-

Dec. 20.

by

stockholders at their Jan. 18 meet¬

be

million square

feet, completed or scheduled for
completion in 1956 within a radius

been provided

approved

our

branches, it became ap¬
parent that, with eight new office
buildings with an estimated total

the

will

of

one

largest

Henry G. Barber, President of the
Royal State Bank. If these recom¬
are

by

250%. Early this year, when this

mendations

named

increased

country. We therefore determined

approval

and

we

the

36,670 shares

announced

was

1944

location, and
our business at

Fifth

recom¬

10% stock divi-

the sale of

capital

In

this

time,

branch

since

area

State

245

at

have

stockholder

the payment of a

new

over

that

this

in

Royal

York

York

den,

Central

Hi

the

New

Avenue, New

just completed in

In

the

Vice-President, has been

a

President of

Company

announced

director early this year. Mr. Dela¬
pena,

Brunie,

Henry C.

Delapena

V.

and the

men

to "preview" the expansion

the company's Midtown Office at
250 Park Avenue at 46th Street.

the
Kattel

Dec. 14

on

by The
Marine
Midland
Trust
Company of New York for its di¬
press,

Company

with

amounted

*

held

was

rectors, 300 business

Trust

holders

stockholders

reception

Office

also announced by President Flani-

Because of the

the
*

A

V.

member of the Advis¬

a

Board of the Fourth Avenue
(386
Fourth Avenue
at
Street)
of
Manufacturers

ory

G. E.

the

country.

27th

ers

in

City,

capital

the end of the subscription

Comptroller in

The

Island

a

cial

community. His prestige and
ability
it
is
said
contributed

the

Garden

Y.

Company

Long

by

the

.

.

Dec.

at the

a

main
and

Jan.

by Frederic A.

Fronting

corner

tending

on

new

Broad

16,

ac¬

an announcement made

19

President.

its

at

on

Potts,

Broad St.

of Chestnut and

ex¬

full city block to South

Volume

182

Number 5492

The Commercial and Financial
Chronicle

...

(2769)
Penn Square, the bank s new location places it at an important intersection in Philadelphia. Visitors
on

opening day will

witness

formal dedication at 11

ularly-scheauied
have

been

phia

National

to

by

regular

Executive

through

floors

two

a

mezzanines.

Dec.

effected

3

stock

consolidation

the

of

charter and

National

the

Na-

$250,000.

title

Bank

was

First

effected

was

of

had

The
under

the

of

*

Trust

Savings Bank of Chicago
14

authorized

000,000

in

transfer

the

of

bank's
like

a

of

amount

undivided

profits

This

action

increase

Bank

the

will

present

$20,000,000.
voted

to

25%

the

$2,by

Big
its

Spring,

capital

$500,000

in

by

Texas,

from

Frank

First

*

dividend

Dec

on

13

12

G.

that

r,

the

1

National

Carter

Mid-

of

stock

yielded

resulted

from

yan

G.

dividend.

H.

*

*

The Walker Bank & Trust Co.
of Salt Lake City, Utah, merged

Officer

Edward

Lawrence

E.

Raether,

directors
to

propose

stock

surplus

Whether

and

G.

C.

Gregg, and
Head Office,

Assistant Cashiers.

capital

stock

from

profits

account.

This

a?the"/

holders
Jan.

11.

,

f.
Of

ing for
not

Z wiener

indicated

ranted in

that

number

of

at

"subject

the

Hord

*

perity

present

W.

Hardin,
in

law

firm

Shepley, Kroeger, Fisse & Shephas

been

President

elected

of the

Trust Company
it was

a

Union

of St. Louis, Mo.,

^announced on Dec. 15 by

David

R.

Calhoun, Jr., President.

has

His
election
becomes
effective
Jan. 1. He will head the corporate
trust
department
of
the
Trust

Company

the

upon

Wiley

R.

*

not

ton

the details

seem

of

require

more

and

their
many

more

plans, but it is
be

Presi-

above

even

the

clamor

for

tax

How

all

sedulously publicized of late

—

is

money.

the

they are certainly another
problems of the budget makers in this pre-election

,

Already it is being said that these demands, even if
met, would impose no great new burden upon outlays
during the next fiscal year—as if adding to the burden
two years

from

is less to be regretted! The fact that

now

often programs

so

of this sort

are launched with support
just such claims, and later prove virtually irrevocable,

of

one

of the most

ceeding

way

be

more

on

course,

to

July 1, 1957 and

ex¬

suc¬

position to absorb such out¬

a

needs to be found to block this type of

policy.

begins to

now

in

of

no reason,

beginning

year

years to

lays. Some

dangerous and insidious attacks upon

policies. There is

pect the fiscal

next year.

This is not

it appears

that not tax reduction, but

appear

quite

what had been foreseen, but

increasingly likely

as time passes. We can only
hope that both tax reduction and extravagant outlays are

this

works itself out in actual
practice, the future must disclose

dent of the First National Bank in

so

extravagant additions to outlays constitute the real danger

the howls of the

cuts.

that less

health, education, and general social welfare de¬

on

It

taking it for

full and pros¬

so

suppose

shining target for those who always want

a

reckless fiscal

a

would

one

these demands will enjoy, but

guineas. Washing¬

to

granted that "in this political year"
and

Jr.,

told

farmer will be heard above the cries for debt reduction

*

Reynolds,

been

observers

retirement

next year of H. J.
Miller, VicePresident, who is now in charge
of that department.
*

Administration

safe guess that it would

widespread that

sound fiscal

and the Republican
party in
general have been growing increasingly restive in these
circumstances, and are said to be preparing plans for
using guineas to heal the hurt the farmer feels. The public

Vice-

Louis

St.

The

as they are
usually doing. It is
why "social welfare" outlays are war¬

see

budget are now being pressed with extra¬
ordinary vigor. We shall have to wait to see what success

is

Growing Restive

of

the

clamor¬

Federal funds

which has been

year.

attorney

an

the

and

are now

funds would be required for such
purposes. But, of course,
the better financial
position of the Federal Government

time.

about what it would do for him if it is returned
to power

*

They

us.

larger amounts than they have been in recent

so

of the

next

partner

.

.

he fsels he needs and presumably is entitled to.
1 he Democratic party which has long boasted of its friendship for the farmer has been having a good deal to say

$12 annual rate."
*

i

more than can be sold
largesse supplied
at the expense of the
taxpayer fails to make up the difference, or at least fails to provide the farmer with the

the increased

on

shares

i

underprivileged,

In point of fact, employment is

years.

mands

prices to bring him a profit, and the

anticfpated thatSdividends

ers, iHs
will be continued

n

to

the

poor,

always have with

we

more

easy

Always With Us

the

course,

do-gooders

hf has continued to produce much

mating

In

announcing these
President Kenneth V.

steps,

r

^

will

retirement of debt.

Greater

It

emanating from

Administration

no way of
knowing. Certain it is that in¬
politicians and self-styled statesmen are quite
ready to support such a program. In point of fact they
have long been
advocating such a course. At any rate
there is evidently some
strong force behind such a move
which is even now
preparing the public for its impact.
Here, then, is another threat to either tax reduction or a

event. First of all, a national election is in the offing and
the politically powerful farmer feels
aggrieved at his lot.
Under stimulation from a
fatherly Federal Government,

proposal

annual

We See

been

the

have

course,

also

As

have

fluential

always

stockholders

that

presently ask for several billion more for foreign aid will
presently prove to be well founded in full or not, we, of

Continued from first paqe

to

not

were

reports

J.

were

—

dividend, increasing

we

Washington to the effect that

Zee

Trust

Coombs,

always had those amongst us who
doing all that is required to
protect ourselves against the menace of Kremlinism.
believed that

Elected

Aston, Van Nuys Office.
Kane, Head Office, was

B.

elected

*

der

and A. D.

stock

a

to

and

Beverly Hills
Office; C. D. Baillie, G H Nutt
W. J. Thomas, Head
Office; D.
Pedlow, Jr., Reseda Office; R. W.
Wagar, San Gabriel Office; J. J.
Lovett, Sixth and Grand Office;

capital of

Bank

the

elected

J.

Jennings, Vernon Office.

$400,000 of
the addition while
$100,000 of the

from

Dec.

Office; F. G. Tanner Jr.,
Sixth and Grand Office- and A D

*

Dec.

nf

Head

Texas, was enlarged from
$1,000,000 to $1,500,000. The sale
new

prpt3i,w

BaS lf [os Angeles!
on

tion. Of course, we have

es-

*

T

directors

land,
of

was

location

Assistant Vice-Presidents
*

the

*

Vice-President

in-

branch
former

bank

*

$400,000

stock

a

A

the

Provo

Mr.

$100,000.
Effective

$12,000,000 to $15,000,000 by transl'er of $3,000,000 from undivided

ley,

the

account.

$18,000,000

The

bank's

and

in

creased

Mer-

&

—

from

on

tablished

Charge

in

Farmers'

System.

serve

of

announced

Dec.

surplus

the

a

and

on

increase

an

As

Mr.

Construction, he was instrumental in effecting completion of

increase

Harris

Directors.

the

chants' Bank of Provo, Utah, both
State members of the Federal Re-

of

of

less than $1,400,000.
*

Re-

of

Vice-President,

1, under its charter and

with

CaUfornia

to

'

*

the

Nov.

joined the official staff of
Republic Dec. 1 1945, as a Vice-

First

capital stock of $2,193,750, in 219,375 shares of common
stock, par value $10 each,
surplus of $3,806,250 and undivided profits and reserves of not

-

at

Aston

a

Directors

to

meeting of

monthly
Board

office

President, Fred F. Florence.

which at the effective date of the
merger

title

elected

was

Aston will work
closely with the

McKeesport,

of

on

He

President. As Officer

.

consolidation

a

between

common

six

•

..

On

the

Florence, . President

newly-created

public's

guests

trip

■

the

tours

30-minute
and

F.

the

Philadel-

assure

Fred

Republic.

Reg-

a.m.

guided

planned

and

of

29

not

our

fiscal fate.

J
,

,

,

.

..

.

,

Palm

that

bu* there

Beach, Fla., has announced
the

regular

dividend

of

75

plus

an

was

semi-annual

cents

in

share,
dividend,

per

15

cent

dividend

340

will

stockholders.
be

paid

Dec;

23.

transfer

divided

The

Directors

,

$500,000 from the
profits account
to

the

,

...

was

deg^jjgji.

■

,

«..

finding

.,

.

,

.

.

,,

•

times.

For

T

...

defensible position

,.

,

past
•.

...

the

.

.

.

,

one

,

.

"It is
are

these

m

Secretary
.

to say

shocking thing that
our

$2,000

a year.

In

in the

of

.

a

five families in

,t

,

Union,

one

,,

^

^

,

n

i

rising

a

year,

were in no way enlarged. It now
^■V.
£
fairly welkassured that our defense forces will re.

has

1

more

money

than they had last

State,

one

of the richest

and all too many have less
$1,000 a year."

The

if programs

^ven

-

out of every

general state of business

the

comes,

most

of

influence

course/

but

on

in¬

much

could be done to improve them
and many ways to fight poverty

year,

the least. And, there have always been those who

•

'•
■

*

decry such

economy as

,v3The Security National Bank of
Alexandria, La., increased its

sumably wpuld; be

capital

tions for the

has been instituted, and who

could

be. found "if we get the
Federal, state and local govern¬

pre¬

...

effective

$150,000

to

Nov.

$400,000.

18

from

A

stock
-

dividend of $150,000 provided for

part

of

increase1*

the

which

was

$100h000 of3 new* stock**16 ^ °f
\

m

*

-

Election

*

of

■National5Bank
to

the

post

of

of.

W.

Aston,

Dallas^Texis,

Executive

Vice-

than ready to enlarge appropria¬

now

^aPs ^ wou^ ^
At the

up

same

situation, the

more

accurate to

say

that they

time, reports emanate here and there suggest-

in§ that the Soviets have made

more Pr°gress »n arming

themselves for modern warfare than had been
supposed

litzelle,

have

the

Board,




are

their efforts to make trouble and win friends;

and that desPite a11 their talk about disarmament,

of

no

W. Averell Harriman

begun to snarl through its smiles. Per-

nounceednk0De?ei3bbykKrrfHobI
Chairman

ments together with fine civic
institutions, churches, labor
unions, business organizations

military establishment.

To add to the stresses and strains of the

Kremlin has

stepping

*

James

more

they

intention of reducing their efforts in this direc¬

and

charitable

organizations."

—Governor Harriman of New York State.
The Governor's advisors should have warned him
of such easy use of duteous statistical

But, by and large, the low income
ever

their status,

are

materials.

what¬
in the low income brackets
groups,

because they are low producers. The problems they

present
suppose.

are

not

.

out of every seven families has
an income of less than $2,000 a
than

*

defense

Poverty

over one

country have incomes less than

our own

.

result of higher wages, higher prices and

higher charges all round might well be
budget

Political Wan Against

■.

Defense ha$^been: struggling with rising costs, and mti,

CHRISTMAS" !

must place
are

the claims of the world situation, m

are

an-^xjuiye appreciably

far year-end bonus

.

done

is

"MERRY

definitely demanding.

sometime

-

$1,000,000 in undivided profits: ThO"r^ "' *
capital stock of the.bank remains,
seems
at
$1,000,000. -It, was^also

employees'regu

...

,

whatever

us.m a

i;^mating that

surplus, account making it total,.,
$2,500,000 and leaving an excess oF-

nounced that the

,

upon

charged with keeping
^

a

un-

,

troublous

of

voted

of

„

particular the requests of the military forces which

Dec.
as

,

lhen there

Thev

on

30 to stockholders of record

.

this situation

dividend of $90,000 makes a total
for the year of $165,000 paid to
than

question at all that the budget makers

no

Washington and members of Congress who

,,

by the Board of
Directors at their regular
monthly
meeting held Dec. 8.
This cash

more

be

their seal of approval

declared

extra

can

what the

Governor

seems

to

-

j

/

30

The Commercial and Financial Chronicle

(2770)

Continued

jrom

estimated

the

attain

12

page

our

We

perspiration

America's

fifties, I have little doubt
second
50
years
of
the

far overshadow the
first. Who dares predict a future in
will

yl

g

atomic

and

electronics

which

other

with

together

bring
services
fantastic? Who

development will

scientific

into reality products and
which today seem

their

hazard

would

effect

the

on

be

replacement

a

aging

present sales methods aren't

reaching. I have dwelt on this
industry not only because its
is

other

in

detours

blocks and

the path

but

of

road¬

economy has

our

always been and should continue
to be forward. How in the light
of

the

us

in

past can we possibly be
doubtful of the progress awaiting
the

Here

of

ahead?

years
are

we

threshold

the

on

year—1956. As usual
we
face a
selling job. Govern¬
ment and business will be ready
new

a

and

made

should

good

afraid

be

we

customer—the

Why

customers.
of

third

our

consuming

public?

Frankly, I think those who doubt

ability to do

our

real consumer

a

apt to be one of
whose selling
experience
was
gained
during
the years of our sellers' markets.

selling job
three

are

Those

types.

who

Those
markets

consumer

assume

saturated.

are

fi¬

And,

who are just plain
lazy — mentally and physically.
Fortunately real salesmen are in
the
majority although like all
kinds of help today, the demand
exceeds the supply.
those

nally

Markets

Consumer

Not

Are

we

with

agree

maintain

who

economists

those

markets

consumer

far from saturated. Let's take

are

like
mine
of

tell

to

she

wants—perhaps

husband

her

Has

mechanical

can

the

all

he wants for
household use and
which he can afford? Have they
raised their standard of living as
high as they might?
Of course
personal

not.

In

there

gadgets

or

the

millions

are

that

want

own

homes

Prospects

vein

same

and

good

—

but

them.

Prospects

developed before they

or

their

own

services are
they must be

and

where

families

afford

can

sure

am

of

should

and

goods

I

for

—

every¬

known

securities

names

about

today

much

so

of

resulting
plight of dealers. I would be most
presumptuous to venture opinions
on that problem. But, I can't help
whether

wonder

but

facturers haven't

basis

manu¬

considered

some

which

upon

the

they

are

predicating their production goals.
also

And

whether

ing

and

I

can't

help wondering

dealers aren't wait¬

some

hoping for customers to

in rather than seeking them
I
mentioned
the
"two

come

out.

in

chickens

As

1929.

pot"

every

I

recall

slogan of

there

another at that time "two

was

the

cars

in

instances

list.

his

those

that is

New

started

father

home

she

drives

without

really

social

use.

family?
How

one?
an

How

is

you

family
two
you

the

afford

on

second

at

worked

you?
guess

I

am

the

the

The

as

the

which

a

Inc.

will

61

at

be

Broad¬

New York City. Officers of

way,

the

Landeau,

with offices

formed

customers

the

him

corner"

have his

desk

his

been

I

Cormick

be¬

with
its
salary limitations, he is still one
a

came

jockey

income

than

it

tial

contributes

that

Sam's

his

to

does

staff

of

Mc¬

Security

offices

from

at

will

climate

reached
these

be

this

a

you

automobile

industry or suggest solutions to
their problems. But, there must

I

of

1956

Co.

the

in

last

of

I

Opens

said

a

growth

Greenway Place to conduct
7*." "
",s

„

Orbit

L o

s

You

may

continuity of the
pattern of the dynamic

1956

gross

could

goods

national products
$403 billion."

services

and

(1956)

produced

reach an
unprecedented rate of $410
an increase of $15 billion over the
year

a

current

the

record

public,

Federal

.

rate

that the
96.1% of the steelmaking
capacity for the entire industry will be at an average of 97.5% of
capacity for the week beginning Dec. 19, 1955, equivalent to
2,353,900 tons of ingot and steel for castings as compared with
100.3% of capacity and 2,416,000 tons (revised) a week ago. The
latter figure representing an all-time high record for the industry.

the

Prudential

entirety

private

and

local

and

story almost
saved

se¬

"researching" the other

sources

I

find. In any case Pruden¬
tial says we will have a gross na¬
lion

product
than

makes

me

greater by $7

my

look

estimate

bil¬
which

somewhat

we

at

120

can

The industry's ingot

is

based

business

Wall

Street,

Martin Revson

annual

on

like

the

For

City.

and

I

think

Institute announced

Steel

and

production rate for the weeks in 1955 is
of 125,828,310 tons as of Jan. 1, 1955.

capacity
week

month

a

the rate

ago

was

and

100.1%

production 2,416,000 tons. A year ago the actual weekly produc¬
tion was placed at 1,726,000 tons or 72.4%.
The operating rate
is not comparable because capacity was lower than capacity in
1955.
The
percentage figures for
1954 are based an annual

Opens

Martin Revson is engaging in a

capacity of 124,330,410 tons as of

Jan. 1, 1954.

j

securities business from offices at
745 Fifth Avenue, New

Electric Output Sets a New

York City.

All-Time High Record

In the Week Ended Dec. 17

With State Bond & Mfg.

The
li^ht

(Special to The Financial Chronicle)

NEW

Cooper
have

Melvin

added

Bond

North

Minn. —John

ULM,

and

been

State

&

to

C.
the

Mortgage

Minnesota

staff

will

power

of ,electric

28

kwh.

the

Street.

were

produced, according to the Ediscn

week's

outnut

W.

Bonner

staff

Company,

First

Building...;

,

of

Brice

Car Loadings

National

Electric Institute.

increased 176.000,009 kwh. above that of

Showed

a

Slight Contraction in the Week

Loadings of revenue freight for the week ended Dec.

&

decreased

988

cars

or

0.1%

■

-

•

Loadings for the week

10, 1935,

below the preceding week, the Asso¬

ciation of American Railroads reports.

Bank
.

,

electric

Ended Dec. 10

have-

Shaiman

the

previous week; it increased 1,693.000.000 kwh. or 17.1% above
comparable 1954 week and 2,706,000,009 kwh. over the like

DENVER, Colo.—Walter G. As-

the

by

week in 1S53.

(Special lo The Financial Chronicle)

and

distributed

for

This

Two With Shaiman Co.

mus

energy

industry for the week ended Saturday, Dec. 17,

estimated at 11.602,OOO.OOC kwh., a new all-time high
the industry. The previous all-time high record was
established in the week ended Dec. 10, 1955, when 11.426,000,000
record

of

Co.,

amount

and

1955,-was

W.

Dubbels

the

joined

My second, and last Conclusion,
that

offices

from

New York

Corporation

securities

a

con¬

servative.
is

engaging in

myself

had to

tional

Securities

Iron

.

of

governments"—unquote. If I had
only waited until Sunday to pre¬
pare
my
remarks I could have
its

Orbit

$32.42, "Steel" comments.

was

American

will

.

estimated

this week

operating rate of steel companies having

,v

be

Well, Prudential economists pre¬
dict—and I quote—"the value of
all

and iron scrap market users contend

ago, scrap

The

Secs.it)pens

financial

the

'Fifties, the
for

all-time high

steelmaking scrap was at an unprecedented $59.17 a

on

-A- year

curities business.

recall
few minutes ago, "if we

maintain

That's an increase

ton, a $1.34 rise over the preceding week which broke the
,1951 record. This marks the seventh consecutive week of hikes.

•

Insurance

the

Sunday's

Angeles "Times."

produced steel for ingots and castings at

in exports plays a major role in the sudden upsurge
prices. In the week ended Dec. 14, "Steel's" price com¬

of scrap

SHREVEPORT, La.—Thomas L.
Morris has opened offices at 3544

had

what

read

Prudential

reported

as

section

steel

the

In

them in the economic forecast for

in

new

I

preparing

in

when

remarks

Projected are 2,338,359

cars.

that the jump

1010

(Special to The Financial'Chronicle)

almost seemed to be excerpts from

used

afford

car

the

to

favorable.

point

magazine.
to

first-quarter prcduzt'on

point over the preceding week, setting an

one

posite

Thomas Morris
as

first that the economic

are

its

gross

conclusions

my

industry expects

record for the industry.

Brazos.

Conclusions

future

this trade journal

letup in demand for steel, declares this

steel industry

The

AUSTIN, Tex.—Paul L. Mead¬
Jr. is engaging in a securities

business

personal fortune.

scrap,

100.3% of capacity in the week ended Dec. 18.

ers,

year

substan¬

own

the

Company,

P. L. Meaders Opens

to

more

each

Treasury

to

&

of

largest producers in the
securities industry with an annual
Uncle

added

New

Shortages of plain material for the construction
industry are forcing delays on a number of structural projects
under way. Demand for plates and structurals will be heightened
further by the needs of steel plants themselves.

Building.

the

of

no

automobile

passenger

smith and John S. Robinson have

made

own.

ferroalloys.

up are

push 16.6% over the 1955 fourth quarter.

Calif. —Cyrus
Klingen-

R. Bchannon, Charles R.

hunting them up

followed tailor

1

tailored

He

BEACH,

materials headed

finished steel remains at $128.14 a net ton.

on

There's
The

LONG

Week Ago

Meanwhile, steel prices hold firm, so that "Steel's" prize com¬

(Special to The Financial Chronicle)

didn't

I

a

on

noted.

McCormick Co. Adds

around

because

but

Week Set at 97.5% of Capacity

particularly for ore and

costs,

rising

posite

plenty

corporate formations were

prices will become effective Jan. 1 for contract users and immedi¬
ately for spot buyers.
Increases average 3.6% on manganese
alloys to 7.6% on silicon alloys. The increases are attributed to

Exchange,
Pasquier, Presi¬

I

driving energy—I didn't

he did.

as

"just

were

work up a sweat

leads.

that

pressure

Other steelmaking

firm, which will be members

of the New York Stock

will be Pierre Du

new

steel prices is near a bursting point,
"Steeh' magazine, the metalworking weekly stated on Monday of
this week.
Already there have been some leaks in the form of
scattered increases, mostly in price extras.
Upward

corporation, DuPas¬

new

&

128,112

100.3%

partnership of DuPasquier

and

imagination

practical

convinced

because

not

of

first 11 months of 1955. This represented a gain
of 21.8% above the 105,183 for the comparable period last year.

one

was

number

record

A

listed during the

Landeau will be dissolved Dec.

quier

the 9,735 recorded during

over

that month.

of

salesman

a

and showed a rise of 4.3%

1954,

November,

It was the smallest monthly total since

Inc., reported.

his customers dent; Serge Landeau, member of,
neighboring the Exchange, Vice-President and
building—just around the corner. Treasurer; and Beatrice Landeau,
The reason I was no great shakes
Secretary.
all

that

business incorporations declined for the second

new

Compared With All-Time High Record of

31

skyscrapers

city in itself. He
top
floor
and

a

November

faith and

&

one

previous peak set

still

the

Steel Output This

corner

\fras

366,535, the

topped

Thursday of
single year as

on

any

straight monih. This brought the total for the month to 10,157,
from 10,698 in October, or a drop of 5.1%, Dun & Bradstreet,

DuPasquier Landeau Inc.

dead

a

high for

unresolved 89-da.y-old General
strike, and the 110-day strike which kept Ford of Canada

Motors

some
imagination
perspiration.

of

making

car

all-time

new

a

despite

This

1953.

assure

can

Canadian

border,

few producers

a

,idle until Jan. 27 this year.

plus

lots

and

the

reached

week

only

,

bountiful fu¬

a

have the necessary

we

courage

he

floor

down

in

in

personally
not trying




in

scheduling re-,

"Ward's" noted, the industry will b3 some

consequence,

year-to-date; production

a

ourselves

we

>

cars

Across

last

soon

by floor call¬
ing
"cold
turkey"
on
almost
every tenant and in one year he
was
the firm's top salesman and

or

cars

long has it been since

automobile salesman

called
to

for

Could

old

Can

each

transportation that

needs

two?

work

stranded

Have you

your

drive?

to

mother

good

He

office

its

at

by

leaving

list.

York

virtually

and

day

with confidence to
ture that

if

a

35,000 cars per day is hardly possible and
are currently working at full capacity.

mists. Above all let's look forward

older

the

around

business

that

old,

so-called

firm's

spending

in this room — know
only one car? A car

have

an

literally

was

Right

from
of

it

the

people

cub

full day at its Metuchen, II. J.,

short of the coveted 8,000,090 goal by week's end
only nine work days remaining. Even at full-tilt operations,

with

glass run¬
ning over as the empty half fills
up. Let's us—you and I—be opti¬

discarded it for he found in many

next

a

that

As

316,300

a

and looks forward to

the

a

prospects and

dog

garage." Today, a quarter
century later that slogan is
much more timely. Look around
you. How many families do you—
every

of

of

was

All

their

inherited

of

a

Motors and Studebaker-Packard
comparatively firm, said "Ward's."

mained

You

courage.

highly respected

the

had

as

be

can

the

and

such

is

Mercury lost

American

Co.,

con¬

such thing as fear—but there

no

"extra" day activities.

uling, dipping the corporation's anticipated yield last week 8%
the 39,716 cars built in the preceding week. Ford Motor

found

overproduction

automobiles

and

firm.

salesmen

So

hear

and

read

is

little

a

lot

a

He

salesman in New York for
well

sold.
We

what

and
do.

can

friend

close

a

proved

first

second

of

afford?

of

who

the

the

devices
needs—and

progress

Ford

13

indicated

below

—

lacked

saving

1965—with

as

thing as a lack of
have all heard the
the signals but you — the sales
story of the half filled glass. The
force
must carry the ball. I
pessimist says—"it's half empty."
frankly confess I am not a sales¬ The optimist says—"it's half full."
man.
But I know there are two The
pessimist sees only the empty
basic
elements
of
salesmanship, half and fears it will be drained.
imagination and perspiration.
I The optimist sees the filled half

household appliances first. Do you
believe every housewife has all
labor

has

bigger and better mar¬
kets. I commend the same philos¬
ophy to you. Our nation has de¬
veloped because of optimists with
courage. Someone has said there

job in all lines of products and
servicesj As a Kibitzer, I can call

were

I

far

as

and

assembly was on tap at American
Division facilities. However, no otner pro¬

Saturday

producers.

Elsewnerc,

great

that

ours—one

Packard.

and

Motors

fidence of

dynamic fifties.
face a real selling

the

practically

Saturated

economic

the

of

short,

In

even

to

do

of

these

termed—"The Nation's
Destiny." I feel sure we

of

one

DeSoto

looking forward to 1956—and

are

it

challenge

one-and-a-half day losses at Chrysler D. vision,
Buad supplies body framing elements to

to

assembly plant while manufacturing changes were made. General
Motors divisions except Pontiac came in for sharp drops in sched¬

answer

been aptly

economy

must

is

ducers

southwest

its

business

and

The State of Trade and Industry

ex¬
can

area

caused

Area

many

production
the selling job all in¬

maintain

and then

now

so

our

the

selling

up

pattern

to

of

because

but
faces

points

experience

vital

so

elements

dustries

We

cars

one

success

sales

own

its fortunate location in this

families

in

that

second

our

growth of Los Angeles Stock Ex¬
change has been and is reflecting

wide open mar¬

a

for

of-living? All 1 can say is
that history shows we inevitably
ard

plus

cars

for

market

as

with you here

ket

individual, his income, his stand¬

progress.

4

page

rests largely
tonight. I think our
sales potential is as favorable as
any area anywhere. I
know the

concerned the

May Face Ahead

namic

e n e r

jrom

Thursday, December 22,1955

economy

ecutives and their sales forces
muster. So far

century

Continued

.

but it
will take all the imagination and
high in

new

The Economic Weather

the

predicted

or

.

.

%

•

.

ended Dec. .10, 1955, totaled 727.223

Volume 182

Number 5492

;;;

The Commercial and Financial
Chronicle

(2771)
ears, an increase of 73,697 cars, or 11.3% above the
corresponding
1954 week, and an Increase of
75,277 cars, or 11.5% above the cor¬

responding week in 1953.

equivalent

Continued jrom page 2

to

40

over

and taxes

wages

31

times

of 75

the

years

ago,

with

U.

S. Automotive

Due to

-1

Output Fell 6% Below Prior Week
Suppliers Strike and General Absence

a

Of

Saturday Work

*

A

Output in the automotive industry for the latest week ended
Dec. 16, 1955,
according to-"Ward's Automotive Reports," declined
6% below preceding period.
'. Last week the
industry assembled an estimated 168,357
cars,
compared with 178,409 (revised) in the
previous week. The past
week's production total of cars and trucks
amounted to 195,115
units, or a decrease of 11,164 units below the
preceding week's
output, states "Ward's."
Last week's car output
dropped below that of the previous
week by 10,072 cars, while truck
output declined by 1,092 vehicles
during the week. In the corresponding week last

and 21,909„ trucks
Last week the

151,912

assembled.

were

agency reported there were 26,778 trucks made
This compared with 27,870 in the
previous

in the United States.
week and 21,909 a

year ago.

trucks, and for the comparable 1954 week, 5,333

696 trucks.

cars

and

week

and

ended Dec.

industrial

failures

climbed

to

247

in

$10,000 in¬
had rights

15

from 219 in the preceding
week, states Dun
At the highest level in any week since Feb.
3,
failures exceeded considerably the 208 which
occurred a year ago
and the 210 in

1953.

However, the toll was 9%
level of 270 in the similar week of 1939.
Failures involving liabilities of

v

below the pre-war

$5,000 or more rose to 207
from 186 last week and 173 a
year ago. Small failures with liabili¬
ties under $5,000 numbered 40 as
against 33 in the previous week
and 35 last year.
Twenty-nine concerns failed with liabilities in
of

excess

$100,000, rising sharply from the 12 of this size a week
ago.
'•
'■
/: . 4
All industry and trade
groups reported increases excent man¬
ufacturing where the toll dipped to 47 from 51. Failures in retail¬
ing mounted to 118 from 98, in construction to 35 from
25, while
the toll
among wholesalers edged to 26 from 25 and
among serv¬
•

ice

to 21

concerns

from 20.

More businesses failed

than last year

in all lines except commercial
service, with the most notable rises
from 1954 in retail trade and
construction.

The week's increase
•

concentrated in

was

the Middle Atlantic

States where failures jumped to 89 from
63, in the South Atlantic

to 31 from 17, in the East North
Central to 33 from
East South Central to 9 from 6.
Declines

26

prevailed

other

only

and in the

in

the

yet today,
exercised, the shares would
have appreciated to around
$4,200,000, with much of this value
having
been
added
in
recent

England to 7 from 16. Failures exceeded
equalled the 1954 level in all regions except New
England and

the Pacific States.

to

rose

40

from

23

in the

and 35 in the comparable week of last
year.

preceding week

I

proud

of the

followed

have

the

market

.action
stock

During

this

known

of

for

wholesale

food

price

index, compiled

by

Dun & Brad-

street, Inc., resumed its downward trend last week and fell 3
to stand

at $5.96 on

Dec.

13.

This

cents

the lowest since June
20,
1950, just before the start of the Korean War, when it also stood
It compared with $6.74 on the
corresponding date a year
ago, or a drop of 11.6%.
*,
5
Higher in wholesale cost the past week were
was

at $5.96.

wheat, corn, rve,
oats, and barley. Lower were flour, hams,
butter, cheese, coffee,
cocoa, eggs, steers and hogs.
The index represents the

total of the price per
pound of
31 raw foodstuffs and meats in
general use and its chief function
is to show the general trend of food
prices at the wholesale level.
v

sum

Commodity Price Level Made
Gains the Past Week

276.91

Bradstreet, Inc., closed at 278.87

Grain
for
,

tlie

a

week

previous and 275.93

on

Dec.

at this

13,

time

compared

as
a

successive

reports

week,

influenced

year ago.

intimating there would

to
be

some
a

degree

return

to

support prices for high quality grain.

by

higii

Corn edged upward

as

,

Industry buying of yellow cereal
Oats moved higher with marketings insufficient
to cover the demand.
Trading in grain and soybean futures on
the Chicago Board of Trade the
past week averaged
quite active.

bushels

per

day, down

55,400,600 in the

41,100,000

from

week

same

48,300,000

the

the

result

cf

week-end liquidation

futures market and
roasters showed

Clearances

a

only

from

Demand for

'

previous

week,

and

nearby positions in

the

lack of demand in the actual
market where
a limited interest in green coffee

Brazil
cocoa

of

offerings.

were

was

lower

fof

spotty. Prices

the
were

week.

irregular and closed

moderately lower for the week. Warehouse stocks of cocoa were
up 10,514 bags from a week ago and totaled
296,514 bags as against
99,064 bags on the corresponding date last year. Raw

sugar

prices

early last week with
as

the

&

years.

time, I have never
when I could say

has

been, and is

(New

stock

York

of

All

are

vestors

make

at

the

the

&

described

sistently

the

knoWs

And

a

time

same

fail

to

profit

only
of the

can

use

the

price

that

a

con¬

he

can

community

check,

look

P

&

employees
squarely in

he
G's

and

the

eye.

Procter & Gamble has literally
accomplished miracles in the soap

business.

With

were
a

steady at the lower basis established

broader interest in

new

wages

and

ings over-taxed packipg plants and made for increased lard

the week ended.

Hog prices continued at around the lowest levels
Lard prices also worked lower as a record
volume of




sugars noted

taxes

pro¬

14 years.

hog market-

cosmetics

All

financial

statistics
them

wonder

have

part of the week, stimulated by continued large loan en¬
the generally unexpected decline in the official
crop
estimate, issued last Thursday.
and

The report placed the

1955 yield of cotton at 14,663,000 bales,
reduction of 180,000 bales from the Nov. 1
estimate, and 561,000

the

made

ever

study of

a

doing busi¬

ness, and if any investor has ever
taken the time to make an

analy¬

sis

of

the
of

cers

statements

P

&

G.

of

the

Here

offi¬
two

are

examples.
P

&

G is building a new head
building in Cincinnati. It

office
won't

with

compare

and

lavish

the

structures

striking

that

line

Park

Avenue, for the building is'
in
conception and con¬
servative in design.
Now it also

modest

should be remembered that P & G
is
one
of
the
largest

spenders

for

advertising in the country.
Clearly, the company is equally

skilled

at

saving

many

tries

have

company, but I
how
many
of

the company's way of

Cotton prices moved in a narrow range and showed little net
change for the week. The market turned somewhat firmer in the
latter

chemicals

people

the

on

always

and

ideas.

new

telligently
The

dollars

spending

annual

well

and

in¬

millions.

report

contains

guarded

sentences

which do not show their true
sig¬
nificance until tied in with other

statements
read

the

by

that

"the

officers.

We

bales smaller than had been suggested by the
average of published

is now
getting the benefit of work which
we have now done over
the past

private estimates.

years

a

This year's

with

13,696.000 bales produced in
1954 and the 1944-53 average of
12,952,000 bales. CCC loan entries
crop

compares

in the week ended Dec. 2 were

total entries for the

season

reported at 488,200 bales, bringing
through that date to 3,898,400 bales.

Trade Volume Continued to Rise Last Week With the
Near

Approach of Christmas

Consumer

spending rose noticeably in the period ended on
Wednesday of last week and the total dollar volume was slightly
above the level of the similar week last year. Considerable
gains
scored in household gifts, toys and children's
clothing.
A noticeable

drop in automobile sales

levels

by the following percentages: New England —2 to -f2;
East and Pacific Coast -j-1 to
-f-5; South +3 to +7; Middle West,
Northwest, and Southwest +2 to +6%.
Apparel retailers reported increased volume in children's
'clothing, with principal gains in boys' slacks and sport shirts.
There
in

was

coats

jewelry

increased call for men's furnishings, while volume

an

suits dropped

and

considerably.

Blouses, handbags, and

best-selling

women's accessories and interest in
sharply; Volume in fur coats expanded
noticeably, and equalled the level of the corresponding week last
were

women's sportswear rose

in

company

research

ment."

We

thought
recent

in

and

must

mind

develop¬

keep

as

this

read

we

a

statement by Mr. Deupree,
of
the
Board:
"Our

Chairman

country turns
—we

10

over every

in

are

fact

a

new

years

country

10

years."
All
evidence
suggests that P & G will at least
every

keep pace with the country. Need
We read, "that the plant in Flor¬
ida

for

cal

pulp

full

reported.

was

The total dollar volume of retail trade in the week was 1 to
5% higher than a year ago, according to estimates by Dun & Brad¬
street, Inc. Regional estimates varied from the comparable 1954

the

production

from

operation

'shake-down
and

we

from

of

trying

now

over

forward

operation

in

now

the

period' is
look

chemi¬

is

that

—

can

successful

wood

in

to

a

Florida

here out?"

The
P &

immediate

outlook

G is best summed

words
look

of

its

ahead

reasonably

be

speaking,

Country

that

are

busi¬

Generally

most
be

to

\ye

we

in

economy

in

us

"As

year,

good.

the
and

to

seems

next

confident

will

ness

Chairman:

to

for

by the

up

of

on

this

Europe
sound

a

basis.
of

Consumers boosted

There

their

purchasing of household furnishings

stores

was

an

reported increased

lounge

chairs;

volume

interest in end tables, dinette sets and

in

bedding

and bedroom suites dropped
lamps, lighting fixtures, and mirrors was
at a higher level than that of the previous week.
There was a
rising interest in floor coverings and draperies.
The

call for

A

high level of food buying at retail was sustained the past
the dollar volume was slightly higher than that of a
year ago.
Housewives boosted their purchases of poultry, while
volume in fresh meat was high and steady. Eggs and butter were
popular dairy products, but interest in cheese declined somewhat.
and

Wholesale

orders

total

dollar

week

expanded

moderately

a

week

ago,

and the

last year.

volume

noticeably

was

that

above

of

the

similar

behind schedule

in

some

on

a

country-wide basis

as

taken from

the Federal Reserve Board's index for the week ended Dec.
10,
1955, increased 5% above that of the like period of last year. In
the preceding week, Dec. 3, 1955, an increase m 3% was
reported.
For the four weeks ended Dec. 10, 1955, an increase of 5% was
recorded. For the period Jan. 1, 1955 to Dec.
10, 1955, a gain
of 7% was registered above that of 1954.
1

Retail trade volume in New York City the past week con¬
tinued, according to trade observers, to top the 1954 pre-Christmas
sales volume.

According
store

10,
in

see

The

to

sales

1955,
the

increase

the

of

Federal

in New York

increased

preceding

1%

last week

Reserve

week,

estimated at 2%.

was

Board's

index,

depart¬

Dec.

be

that

of

3,

1955,

the
a

like

that

at

state¬

almost any

If I were to put the spirit
optimism of these words into

the

jargon of Hollywood, I know
would buy some P & G stock
before reading further.

you

There
tor

in

come

&

is

much

other

that

cities

the

Gamble.

I

inves¬

do

can

to

familiar with

more

suggest

be¬

Procter

visit

you

the large supermarkets and

notice

the

is de¬

of

amount

voted

P

to

&

drugfgist

your

items

bearing
get

a

if

and

your

send

come

are

that

P

&

time

write

to

time

Procter

on

&

might otherwise not
desk.

your

other

about

broker,

a

from

data

across

The

products, ask
about his sales of

P & G label,
of Moonbeams,,
for its sales force.

will

you

Gamble

G

the

magazine

Or

I

that

space

copy

the

day

G

I

and

reading

was

the

facts

were

mentioned that the President, Mr.

McElroy,

was

Miss

and

plant guest.
ing.

For

with

which

of

2%

of

the

to visit Washington

America

last

decrease

but

made

time."
and

period

City for the weekly period ended

above

corrected,

can

me

textile lines.

Department store sales

Dec.

to

and

Among the best-selling items were furnishings, women's ac¬
cessories, household gifts and juvenile furniture. Deliveries were

ment

Of course, there are points
weakness that we would like

ment

expansion in volume in china, glassware and
gifts, while linens and towels were extremely popular. Furniture

if

had

been

a

I couldn't help smil¬

the
we

President

mixed
view
and

emotions

the

Office

Miss

Amer¬

(revised)

was
recorded.
For the four weeks ending Dec.
10,
change was registered. For the period Jan. 1, 1955 to
Dec. 10, 1955, the index recorded a rise of 1% from that of the
corresponding period of 1954.

1955,

in

with

duction.

year,

crop

company has mastered the field
of detergents.
On soap products
it
has
become
a
billion
dollar

earnings

shareholder

dividend

their

the 1880's, costs around a dime
today.
With
equal
genius
the

giant—now P & G is moving into

management,

when

his

three

foods,

With such

same

prices

the

surprising that the stock
traditionally
sells
at
approxi¬

Ex¬

the many in¬
eternally trying
few quick points and

the

brilliant

they were, a cake of
that cost five cents in

the

which

by

soap

in

it is not

receives

are

than

years

what

studies

profit

one

term automation.

ratio.

investment

G

development
Gamble is planned
with
a
precision

smoothness

be

the

of

aware

who

to

in

us

to

&

and

executed

customers,

of

field

When

Procter

and
and

Big

Stock

easier

in JP

period of

trading

growth

the

change).

far

company, the reason becomes ob¬
vious.

now,

on

is

money

a

a

stock.

that it

last year.

Trading in the domestic flour market continued cn a routine
basis at the mill level but some
jobbers were reported moving
fairly good quantities of hard wheat flours to small bakers in
anticipation of holiday business. Coffee prices continued easier
as

over

make

mately

producer marketings dropped 30%

below those the week
preceding.

was

to

client, "Now buy P & G if
y6u want a quick profit."
And
yet I can say with equal candor

week

Wheat was also stimulated
by potential exuort business and
continued dry weather over most of the hard
Winter wheat belt.
Export sales cf wheat were fairly large but had little effect on

trading.

40

day

a

somewhat.

prices, particularly in the cash markets, moved
higher

second

Washington

stock

It

your

market

last week.

commodity price level rose moderately last week
largely due to firmer grain prices and continued advances in steel
scrap.
The dai'y wholesale commodity price index,
compiled by
&

Procter

over

a

Further Mild

The general

Dun

double

general

year.

Wholesale

with

fact

daily

broad

advances.

The
rather

am

that

the

were

Wholesale Food Price Index Declines to Pre-Korea
Level
The

from

years.

I

times

five

regions, including the Pacific States where failures dipped

Canadian failures

would

been

to 56 from 66 and in New
or

a

vestment,

the

Bradstreet, Inc.

of

1890

required

Board

Commercial

shares

have

best investment

Business Failures Continue to Rise In the Latest
Week

&

100

Procter & Gamble in

to

Canadian output last week was
placed at 6,320' cars and 851
trucks.
In the previous week Dominion
plants built 6,422 cars

and 860

of

material

Ivory

Security I Like Best

purchase

Gamble

year

cars

The

raw

no

■

i.

ica

can

how
&

be fused

into one—this is

t .ousan^s look

Gamble.

upon

Procter

32

The Commercial and Financial Chronicle

(2772)

Crabb Ends

Investing for Income

The

National Income Series

Chairman

mutual fund, the primary objec¬
of which is to provide an

fied

tive

investment in
of bonds,
stocks

a

diversified group

preferred and

selected

National Securities &

Corporation

Established 1930

120

New York 5,

Broadway,

Tripp Cautious;
Cites Need for Patience Now

because of their

relatively high current yield and
reasonable expectance of its con¬
tinuance with regard to the risk
involved. Prospectus and other
information
may
be obtained
from your investment dealer or:

Research

T. V. fund's

common

New York

Total

net

"As of now,

Television-

of

assets

Inc., at the fis¬
cal year-end on Oct. 31 amounted
to $105,847,907, equal to $11.05 per
share, compared with $55,868,018,
or $9.47 per share, a year earlier,
according to the fund's annual re¬

against

months, but we feel strongly that
exercising these qualities will be
A

Fund

000 and 25,000 shares outstanding.
In

his

Chester
The

Objective of this Mutual Fund is possible

LongTerm Growth of Capital and Income through
Diversified Investments in the Chemical Field

including the New Science, Nuclear Chemistry.
Prospectus

on

despite

date

in

the

President, said

continue

the

reveal

to

growth to

great

of electronics,
it is insignificant when compared
the

to

request

Tripp,

studies

"Our
that

shareowners,

to

report
D.

usages

future

potential

this

of

&

Co.

Inc.,

He

added

that

industrial

competition will continue to bring

65 Broadway, New York 6, N. Y.

about rapid developments in elec¬
tronics
lunctions
"regardless of
state

of

the

country's

than

"we

7;-1

further

sriAe
p08Sible

^7^77^7!:
icorporated
icome Fund

your

investment

available

elec¬

current

5s

the

ourselves

in

best

fund's

approximately

assets

97%

were

invested

securities—with

comprising

of

1965;

in

such

in¬

well

di¬

a

amount
of
Servomechanisms, Inc. convertible 5s of
1966; $100,000 principal amount of

Corp.
convertible
1965, and $2,-

000,000 principal amount of United
States

Treasury

Bills,

Dec.

15,

1955.

Common stocks eliminated dur¬

included 9,000 shares
Bosch Arma Corp.,
26,000 Theodore Gary Corp., and
of

year

American

3.000

shares of

United

Shoe

Ma¬

chinery.
of

ACF

Industries,

Inc.,

Babcock

Wilcox

of

shares

&

15,000

Co.,
11,300 shares of Bell & Howell
Co., 23,000 shares of Bullard Co.,
8,300 shares of Consolidated Elec¬
tronics

Industries

Corp.,
10,000
Telephone
Co., 5,400 shares of E. I. du Pont
de. Nemours & Co., 25,000 shares
shares

of

of Food

Continental

Machinery and Chemical

Corp.,

characteristics."
Toward

from

lent

"we

to

of

the

of

cash

third

and

Corp.,
29,000 shares of Pullman Inc., 18,400 shares of Ryan Aeronautical
Co.,
11,000
shares
of
Servomechanisms, Inc., and 13,000 shares
of

TelAutograph| Corp.
With Sec.

equiva¬

better

explained,

succeeded

substantial
ness

thus

Mr

Assoc.

sum

on

in

As

any
a

re¬

investing

a

the first busi¬

day following the

WINTER PARK,

distressing

announcement of President
Eisen¬
hower s illness.

C. Johnston is

Security
East New

bers
more

of

now

and

affiliated with

137-139

Philadelphia-Balti¬

Midwest

Stock

company,

the

of

of

two

the

years

served

since

as

1925.

will

He

to the

director

and

his

continue

association with IDS

consultant

as

grow

to almost $2 billion of assets

under

its

ment

control

today,"

IDS

vestors

and

Mr.

home

Crabb

office

said

in

the

at
In¬

to grow

during those years
life when I ought to be re¬
linquishing some of my activities,

adding to them."

Earl E. Crabb's

American
minor

success

typi¬

a

story. From

in

the

supply

department of the Union

Pacific

Railroad,

he

through

rose

promotions

Ex¬

changes.

in

suc¬

the

ac¬

became

and

Company in 1919

and

He

Mort¬

auditor

as

Vice-President

and

Treasurer.

1925, with

quired

a

of

group

asso¬

Portland, Ore., he

control

of

Investors

Syn¬

Minneapolis, a company
selling a single security in

the form of

ment certificate.

ing

30

panded

to

Over the follow¬

the

years,

business

become

ex¬

Investors

Diversified

Services,
Inc.,
now
parent company of eight subsidi¬
aries and affiliates, which issue
both

face-amount certificates and

mutual

fund

shares.

This

Inves¬

tors

Group of companies repre¬
sents the largest investment man¬
agement of its kind in America.
A nationwide sales, organization
of

approximately 2,300
distributes the

represen¬

tatives

securities

of the Investors

Group across the
United States, and in Hawaii and
Canada.
The
company
services
more
than 725,000 customer ac¬

enterprises

Crabb

of

amount

than

16

in

years

which

Mr.

January,
1940,
$112,000. In less

it has grown to be

the

largest balanced fund in the
world, with net assets in excess of

extraordinary
crises

of

1955

Crabb's

Fundamental Investors, Inc.

pany

the

are

are

when

the

period

recalled.

the

in

many

from
Under

1925
Mr.

hand, the com¬
through financial de¬

pressions, war, and economic ad¬
never failing to meet
its every obligation to the many
thousands
walks

their

is

a

a

designed to pro¬
diversified, managed investment

in stocks selected
sible
Send

on

Americans
who

investments

in

all

had

entrusted

to;jits

manage¬

(0

jfe.

frequent

Raymond
Diebold

of

/

ONE WALL STREET, NEW YORK 5

Name

Addreps_




lives.

C. Koontz, President
Incorporated of Can¬

vault doors

and

bank

IDS

the

of

board

five

the

directors.

Diebold

the

of

company

local

investment

funds

on

through

firms,

or:

HUGH W. LONG AND COMPANY

positions of Treasurer and Execu¬
Vice-President. Before join¬

tive

the

ing
of

he

company,

President

3,

New

Vice-

was

General

and

Manager

Industries of Green¬
manufacturers
of

Maguire

Conn.,

wich,

metal

member of

tors of the

products.

the

board

of

Jersey

is

He

direc¬

Easy Washing Machine

Asheville,

in

Born

Company.
N.

C., he attended the University
of Virginia.
He now resides in
wife

his

with

Canton

and

son.

IDS November Sales

Set All-time Record
sales

Total

face-amount

of

in¬

certificates

investment

stallment

and mutual fund

shares issued by

subsidiaries

affiliates of In¬
Services, Inc.

and

vestors

Diversified

during

November

all

broke

monthly records in the company's
61-year
history,
Grady
Clark,
Vice-President—Sales, reported.
Gross
dollar volume
of total
of

sales

four

investment

mutual

distributed by
$26,634,032.
The

funds managed and

totalled

IDS

funds

Investors

are

Stock

Investors

Investors

Canadian

Group

Fund

of IDS.
value of

face-

Ltd., all affiliates
Total

Inc.,

Inc., In¬
Fund, Inc. and

Selective

vestors

Mutual,

Fund,

maturity

certificates

installment

by individual
inves¬
November was $60,-

purchased
during

tors

These certificates were
Investors Syndicate of

722,513.
issued

by

America, Inc., and Investors Syn¬
dicate Title &

New

of

Guaranty Company
subsidiaries
of

York,

IDS.

(Special to The Financial Chronicle)

CHICAGO,

111.

—

Maurice

now

Joins

Krensky Staff

(Special to The Financial Chronicle)

CHICAGO, 111.—Julian J. Portman

has

Arthur
141

become

M.

associated

Krensky

&

Co.,

West Jackson Boulevard.

objectives of this Fond
long-term
capital
and
incorxa
for its shareholders.

Prospectus

upon

request

Lord, Abbett & Co.
New York

—

Chicago

—

P.

with H. Hentz &
Co., 120 South La Salle Street.
Angland is

INCORPORATED

Elizabeth

April

on

1952, Mr. Koontz had held the

7,

growth

mutual

In

he had been with
before becoming Presi¬

years

Investment

these

secu¬

Common Stock Investment Fund

are

Prospectuses available

Minne¬

to

son

Fund
A

.

bullock

Established 1894

visitors

equipment, business record
systems
and
microfilm
equip¬
ment, will succeed Mr. Crabb on

Diversified Growth Stock Fund, Inc.

v-, ™">/

reside

rity

oX

i«f isirst^o]

mailing this advertisement to

now

Affiliated

the basis of pos¬

participation in Canada's growth.
for a free
booklet-prospectus by

calvin

of
life

Manhattan Bond Fund, Inc.

U. S. mutual fund

vide

of

companies.

apolis, where their

justments,

Diversified Investment Fund/ Inc.

statutory re¬
governing face-

Bellevue, Washington, but will

be

more

guiding

came

particularly

H. Hentz Adds to Staff

These achievements

to

1940,
and

certificate

amount

especially proud is In¬
vestors Mutual, Inc.
This mutual
type
investment
company
was
with net assets of

part

success¬

is

incorporated

of

quirements

face-amount invest¬

a

com¬

active

an

ac¬

dicate in
then

took

standards

a

gage

en¬

that portion of the law which set
the

precision

to Western Bond

$880 million.

iwi

Act

pany

studying accounting at night.

In

investment

to

He

counting department, supplement¬
ing practical experience by
went

was

Govern¬

drafting the Investment Com¬

dent

is

career

positibn

cessive

Federal

formulating legislation

was

bank

of my

a

management.

ton, Ohio, manufacturers of safes,

Building today.

responsibili¬
ties of management have grown
commensurately
and
will
con¬

cal

the

regard

in

manage¬

"The demands and

tinue

tribute to his

good

Mr. and Mrs. Crabb

Investors

seen

from $12 ^ million of resources in

the

ment

president.
have

1925

listed when

panies.

man¬

living

a

and

Mr. Crabb's experience

in

about
Mr. -Crabb had

officer

is

foresight

financial

company

ago,
an

The company's phenomenal

Midwest.

a

upper

One of Investors' most

England Avenue, mem¬
the

the

career

in

agement

not

ment.

growth

counts.

Fla.—Edmund

Associates, Inc.,

of

When he retired from active

(Special to The Financial Chronicle)

pre¬

"for

market reaction.

we1

markable
leader

ful

were

he

General

increased

approximately 10%,"

"We

of

shares of Lockheed Aircraft

Tripp added.

sult,
r

end

gradually

reserves

serious

Berkeley Street

the

shares

9,000

Diversi¬

close the long and re¬

a

ciates from

Additions included 33,000 shares

Mills, Inc., 30,000 shares of Gen¬
eral Telephone Co., 10,000 shares
of
Litton
Industries, Inc., 8,400

half of the year, but
subsequently
additional emphasis was
placed on
issues
"with
greater
defensive

brings to

$200,000

principal

conditions

invested
position
was
approxi¬
mately maintained during the first

dealer.

Bostop, Mass.

subordinate

versified

The Parker Corporation

*

that

year,

pared,
200

of

portfolio of companies
engaged in various growth phases

each

on

is

sciences

entrench

quarter
prospectus

potential

advantage."
Tripp told shareowners that
beginning of the 1955 calen¬

at the

our

A

great

certain

nucleonics," he stated,

fields to

Mr.

dar

Corporation convertible 37/ss of
1967; $150,000 principal amount of
Litton Industries, Inc. convertible

of electronics and
nucleonics. This

principal-

fund

the

vestments

fund.

risk of

these

equity

-tCtt.Income
"otaSble without
due

feel

the

more

affording those of us so vi¬
tally interested, an opportunity to

Len"«erm GROWTH of

mutual

in

are

are

Established 1925
portfolio

of

ever

tronics and

Investors
a

we

last year); $80,-

principal amount of American
Electronics, Inc. convertible 5s, of
1957; $188,000 principal amount of
American Telephone & Telegraph

ing the

growth

Incorporated

bonds were held

no

000

econ¬

omy."
"Because

(whereas

issues

bond

ago

of the follow¬

shows the addition

ing

year

a

subordinate 4%s of

keen

Manager and Distributor of Chemical Fund, Inc.

the

with

compared

TelAutograph

science."

F. Eberstadt

the

for

started operations 011

Sept. 7, 1948,
under the sponsorship and man¬
agement
of
Television
Shares
Management Corporation of Chi¬
cago with net assets of only SI 12,-

of the fund's portfolio
Oct. 31 fiscal year-end

Investors

Directors

"I

study

of

Services, Inc., from the Board

of

rewarding to all."

date

Electronics

-

during

fortitude

«

Television

patience and
the
coming

take

will

It

titude.

last

5,901,271

conservative and cautious at¬

our

port. Number of shares outstand¬
ing on Oct. 31 this year were

9,574,053

nothing on

see

the horizon to cause us to change

Electronics Fund,

year.

we

Thirty-Year Career

resignation
of
Earl
E.
former
President
and

Crabb,

By ROBERT R. RICH
a

Thursday, December 22,1955

.

With Investors Diversified Services

Mutual Funds

through

.

.

Atlanta

—

Los Angeles

with

Inc.,

Volume

Number

182

5492

The Commercial and Financial Chronicle

...

ChrisEmas

Hugh W* Long
Study Cites
There

advantages and dis¬

are

advantages in each of the several
of owning securities.

ways

discussed in

are

W.

These

study by Hugh

a

Long and Company, Inc.,

tional

underwriters

of

mental

Investors

three

mutual funds.

veloped

in

and

other

to

A

Confidential notice

Year

registered and certain
the various forms of

ended

Herbert

bright and heart¬

Christmas

of

and

greater

even

New

a

successes,

Assets of the fund

and

"John Jones

a

"John

things in life.

To

or Mary Jones" and
Jones, payable on death to

Mary Jones" forms of registration,
acceptable in registering certain
series of U. S. Government bonds,
are
not
accepted in registering
corporate shares.
The

study discusses joint own¬
ership, usually expressed in terms
such

Jones,
of

"John

as

Jones

and

survivorship and not

in

common."

the

tenancy
limit

While

their

under

individual

freedom

connection

tenants

as

with

transfer

of

the

shares, they gain certain advan¬
tages. One is tax benefits.
For

example,

ternal

Revenue

while

exclude

to

from

$50 received
a

is

the

entitled to
if they file
a
joint return,) the joint owners
would together be entitled to ex¬
clude $100 of dividends from their

jointly, each

owner is
exclusion.
Thus,

this

taxable income.
of

Contents
forms of

of

the

include

study

registration in the

names

admin¬
istrators, trustees, guardians, cor¬
porations, partnerships, and asso¬
individuals,

executors,

section

a

restrictions

certain

the

tion,
in

vestor

of

a

achieved through
or through pay¬

trust

dividends

of

registra¬

on

out that
the aims of an in¬

be

may

use

ment

avoid

to

points

study

cases

some

the

how

on

other

to

per¬

sons.

Hugh W. Long and Company,
releasing the study, empha¬
sized that different consequences
in

flow from different types

of stock

ownership, and that the subject
is
one
with
which
investors
would

well

do

to

become

fa¬

is

Wack

111.—Clifford
White

with

now

West

216

that

has

before

gone

And may

this be the year when
you cash in on all of your fondest
hopes and brightest dreams.

&

Washington

Street.

Realizing that

in¬

the railroad

played an important
part in the development of our
country
and our economy and
strongly believing that the indus¬
try will continue to share in fu¬
ture economic progress, Financial
Industrial Fund, Inc., during the
Fund
quarter
ending Nov. 30,
has

dustry

1955, expanded the transportation
of its investment hold¬
ings with an initial purchase of
the shares of Chicago, Rock Is¬
segment

Pacific

and

Com¬

Railroad

Additional shares of Penn¬
sylvania Railroad Company were
also purchased.
FIF
is currently placing
in¬
creased
emphasis on the
elec¬
pany.

tronics

electrical

and

equipment

two-fold increase
—
consumption of
electricity is being projected for
the
next
10
years,
the Fund's
industry. As
in the output

a

management believes that com¬
panies active in electronics and
related activities will prove to be

Life Fund

of

add

to

the

General

of

market
portfolio the

recent

its

to

Com¬

Electric

Westinghouse Electric Cor¬
Corporation,
and
Radio

poration, Burroughs
Philco
Corporation
Corporation
which

have
more

or

America—all

of

of

interest in

active

an

field of electronics.

all, during the Fund quarter
ending Nov. 30, 1955, F I F pur¬
chased securities of 42 companies
in amounts totaling more than $5.4
As of the recent date Fi¬

million.

nancial Industrial Fund, Inc.,

in

investments

96

held
com¬

panies spread throughout 19 major
Massachusetts Life Fund is

paying a dividend of 42 cents
per share from net investment

ending

December 31, 1955-

distribution

A

per
tal

of 47

cents

share from realized capi¬
gains is also being made

by the Fund.
dividend from income

The

Net

capital gains distribu¬
both payable Decem¬
23, 1955 to holders of
are

ber
trust

the

certificates of record

at

close of business Decem¬

fJnMViance

CfCobfiitaltjCtfle

^cm/icuty, Trustee

million
Fund

i

increased to $45.9

the

at

beginning

of

the

from
1954.

The

increased

asset

to

value

per

share

$3.8894 from $3.2733

year

earlier.

The

a

80tfy consecutive quarterly

dividend

The

Common

as

15,

of

F

earlier.

It

F, payable Dec.

per

dividends

have

been

shareholders

months.
a

in

from

paid

the

This $0.12

to

most

Fund
recent

is in addition

security

profits

12 month period.

during

the

continue

to

fluctuate

over

is

the

peak

in

reported

that

there

The pattern of

that

are

business,

economic

Canadian

A

dominantly

the

at

$20.89

or

a

owned

Fund

American

by

pre¬

inves¬

and

and 21% in

investments

foreign obligations,

preferreds. The Fund's
by industry showed

important concentrations in
als

in

6%

October,

of

end

met¬

and

(1954), Consolidated

Industries

Paper,

Con¬

solidated

Sudbury Basin Mines,
Farbwerke Hoechst, Gunnar Mines
and Pine Point Mines.
Holdings

the

the other hand, will have a marked
for money and credit and predictions

Since the forecasts are,
a

will

continue

be

to

strong

in

the

in

.

most

likely

Fundamental Investors

the

powers

of the boom is

pressure

The

off the

pressure

opinions

of the New

of

now

strong

around

This could

Treasury bills

need, to do

be

This

as

seem

as

long

the

as

it has been.
to

are

hold

the

beliefs

that

the

expected with the coming

Year, will be offset by probable action of the Federal

Reserve Banks.
sellers

markets.

that be will not be altered

as

easing developments, which

P money

money

so

that the Central

mean

even

or

Banks will

be

Treasury certificates if there be

in order to keep the pressure on the money markets.

(The Reserve Banks recently altered their policy and bought cer¬

ket

and

as

well

to

as

Treasury bills in order to eas^ the money mar¬

help the Treasury financing.)

This would appear to

credit limiting operations of the monetary

authorities will still be felt in the Government market, especially
so

in the near-term sector of it.

Further Rate Increases Possible
no

question but what the future trend of interest rates

is tied in very definitely with the course of economic conditions

Capital Gains

Fundamental Investors, Inc. has

shareholders of the

1956 will bring with it

that the interest rate raising and credit limit¬

means

ing policies of the

eliminated.

were

year

1955, it is not expected that the monetary authorities will

inclined to take any of

•

that the

continuation of the economic trend which has been in evidence

There is

in

in

seasonal repayments

Also

change, for the time being at least, in the needs
financing its operations.

indicate that the general

Corn., Canadian

advised

future*

or no

bestos

To Pay

near

noted

This would appear to indicate that there will

tificates

Imperial Oil

decrease

some

on

conditions

mining, 17%, and forest
products 14%.
Common stocks
added during the six-month pe¬
riod included Algoma Steel, As¬

of

been

Monetary Authorities Will Maintain Pressure

of

lfund

tors, Templeton Growth Fund had
73% of its assets in common stocks
Canadian

little

of business for

to $21.99 a share.
with total resources

million,

$7.1

market has

Up

Growth

equal

has

influence upon the demand

be very

share
at the beginning of its first full
fiscal year April 30, 1955.
of

the money

because it is expected that the

market.

$13.06,

Canada, Ltd., reported net assets
at the end of October totaling $7.3

million,

quarters that

inventory and agricultural loans is expected to .get under way
Year. Likewise, the return flow of cur¬
rency from circulation, which usually takes place with the advent
of the New Year, will have an easing effect
upon the money

Templeton Growth

This compares

some

the squeeze,

of

the start of the New

at

year

a

to

$10.85

policy of the authorities.

money

on

the year-end.
an
increase of

30.2%

or

from

by the tight

demand for future loan commitments.

assets

reported

believed

foreseeable future.

Fund

and, since the outlook for business is still good, it would not be a

surprise in many quarters of the money market if there should

eventually be further upward revisions in most rates of borrow¬

that it is
expected
a
distribution of ap¬
proximately 55 cents per share
from net realized security profits

well

for the fiscal year

term yields, it is believed by not a few money market specialists

special

a

will

1955

record

made

to

to

on

30,

Dec.

of

shareholders
date.

It is

distribution

will

be

same

about Jan. 31, 1956.

or

According to the announcement,
will now be the Fund's policy
declare

gain

capital

distribu¬

tions, when available, on or about
the last dav of the Fund's fiscal

payable

year,

to

shareholders of

date, and to make

payment on or about the last day
of the following month.

of

a

full

shares of the

the

stock

on

value

per

basis

of

Fund's

net

the
shareholder
this preference.

provided
presses

asset

share at the close of
5, 1956, or in cash

Jan.

ex¬

Dec.
a

17 at the age

Paige

prior to his retirement in 1936 was
a

This is the sector of the money market which has

adjustment in either direction. However, as long
the
if

policy, near-term rates

and

when

which

there

rate

short-term

means

should

will

be

can move

be

the

a

higher.

downturn

first to

reflect

in

tight

interest

such

money

is

a

rates,

the

development,

return.

Why Long Bond Yields Continue at Low Level
This brings up

once

again the question

term sector of the Government

turbed by

as

to why the long-

market has not been too much dis¬

the tight money policy of the authorities.

This is due to

the fact that this kind of money does seek an outlet in short-term

because these funds have to be put to work at a set or

issues,

rate for an

extended period of time.

Therefore, most of

public pension funds and some of the private ones have to
commitments

order to get

This buying, along
term bonds,

in

the

most

distant

Treasury

obligation

in

the needed rate of return for many years in the future.

with the not-too-large offerings of the longer-

has kept the market for these issues on

keel, in spite of the tight money conditions.

member of the New York Stock

Exchange.

as

On the other hand,

that the reinvestment of these funds will have to be

made at declining rates of

make

of 75 following

three months' illness. Mr.

will only be

short-term (not of too long duration), means it is subject to quick

the

passed away

as

Ipeen receiving most of the pressure because, as the words imply,

assured

Douglas W. Paige
Douglas W. Paige

that the "prime bank rate"

temporary nature as far as the near-term Government market

is concerned.

this month will be payable in ad¬
ditional

mean

the rediscount rate would again be raised.

that the relief which is looked for in some quarters

that the distribu¬
declared the end of

be

to

as

With the pressure of the tight money being felt most in short-

It is expected

tion

This could be taken to

ings.

ex¬

the

the

on

ending Dec. 31,

declared

be

on

pected

it

message

payable

1955,

income

distribution of $0.17 per share

from

It

adjusting for $1.25 per share
distributed from securities profits.

1955, on all shares of record
1955, at the rate of $0.03
share, brought to $0.12 per
the

issues

demand for funds will tend to lessen somewhat in the

of

Fund

is

passed

Asset value per share in¬

creased

business

I

unexpected.

Government

Reduced Credit Demand Expected

com¬

investment
$3,865,879 in

Stock

Securities

$4,294,751

Nov. 30,

same




Indus¬

quarter, Aug. 31, 1955, and
$28.9 million on Nov. 30,

to

Incorporated 1818

Financial

of

trial Fund, Inc.,

which

,ytfaMac/iu4e/A

be too much bothered

1955; $3,269,180 in 1954.

million at Nov. 30, 1955, from $40.6

share

ber 16, 1955.

assets

distant

more

to

from

payments

record the same

industry divisions.

and the
tion

$5,163,327

income amounted to

The Fund took

ties of the future.

security

DIVIDEND

porary ease would not be

securities

from

were

the dynamic growth equi¬

among

In

income for the quarter

shareholders

Templeton

Rail Investments

one

Massachusetts

distributions

1955

Fund Assets
F I F Increases

operate

to

short-term

of

Treasury obligations still getting the benefits of the tight money
policy in the form of favorable yields, even though some tem¬

after

Liquidity

pany,

(Special to The Financial Chronicle)

Company,

Total

year

$18,508,203
at
This represented

bring you rich dividends and cap¬
ital gains in the days ahead.

shares

With White & Co.

C.

all

May

buyers

Buyers of the longer-term Treasury obligations do not appear to

Group

Distributions

I

entities, with the

separate

as

316,395, or 32.2% above the $17,636,447 figure for 1954.

for the

of

dip

BLOOMINGTON,

will

you

segments of the money market continue

within the rather limited range which has been in effect recently.

dend

further, that

two

The

profits

labors.

your

advantage

miliar.

The

pretty much

totaled $23,-

the coming year for the fruits of

land

ciations.
In

you

to find increasing time in

first

registered

are

wish

To

manage

dividends during

as

$99,-

for the year

$24,835,803, or 33.3%. During
the same period shares outstand¬
ing rose 26.2% to 13,001,932 and
5,352
new
shareholders
were

In¬
1954,

through of these switches. Volume, according to ad¬
vices, is fairly good, with a bit more breadth being noted in certain
of the intermediate and longer-term Government
obligations, and
this is being attributed to the exchanges which are being made.

pared with $497,218 in 1954. Divi¬

entitled

income

if his shares

year,

of

Code

taxpayer

every

the

under

bring

Management

owners

in

Christmas

cross-section of the good

joint

action

of

that

also,

the New Year will

broad

Mary

joint tenants with right

as

wish,

to

rose

increase

an

Sales

Diversification

discussing the pros and cons
joint ownership, for example,
the
study points out that
the

the putting

Presi¬

dent.

registration.
In

Anderson,

added.

good health and happiness.

of

R.

Government

market is very much in the- business of
making year-end tax adjustments because time is running out for

<pf

Objective

issued

The

during the fiscal year
Nov. 30,
1955, according

377,796,
To wish you a

classes,
registered
gains in both assets

sales

and

Governments

on

By JOHN T. CHIPPENDALE, JR.

industry

substantial

Spirit Mutual Fund.

frequent

to

16

ing the formation of the Christmas

warming

of

concern¬

Reporter

Group Securities, Inc., sponsors
of five general mutual funds and

to

The study was de¬

response

and

(sponsored

the formation of the
"Christmas Spirit Mutual Fund"—
taining

investor inquiries as to the forms
in which stock certificates may be

aspects

Fund

by Granbery, Marache & Co.) has
sent
out
holiday greetings per¬

na¬

Funda¬

Pioneer

of

Our

Show Gains

Wayne R. Benzing, Vice-Presi¬
dent

33

Group Funds

Spirit
Fund

Stock Registrations

(2773)

"MERRY

CHRISTMAS"■

a

fairly even

34

(2774)

The Commercial and Financial Chronicle

Continued

jrom

13

page

.

.

Thursday, December 22,1955

.

need

we

sustained

a

condition of

global

Securities

where
been

their

.

These
a

with

those

in

rush and

Cold

also impatient

When

are

are

a

who

are
making detheir time and their

mands upon

attention and unless you can show
them where their own self interest is

going to be served, and

do

can

it

without

see

iess

he

discussions, you will find that
ability to obtain the un-

divided

attention

and

mers

of

custo-

your

wil

prospects

be

sen-

ously impaired.
The
out

day I was clearing
files of some of the col-

lection of sales ideas, sales letters,

advertisements,
the

which

and I

every year

excessive

that

to

be

fied

done

carried

technical

the

words

ideas

convey

in

simpli-

a

There

manner.

that

collect

of

amount

used

were

should

that

I

struck with

was

ads

were

heavy burden of

investment

wording

which could have told their story
in half the space and would have
been

ever

tive.

There

tried

effec-

more

to

or

The longer
right approach to the

problem of conveying investment

ideas, I

that

ever

convinced than

more

am

if

briefly and

you

can

simply

as

him

to

way

small

a

accu-

part of his
will

taxes

that

build

to

make

to

is heading un-

some

after

capital.

en-

Just

it

say

as

possible,

as

Understand

Not

30

$4,000

expects

to work

is

and

years,

an-

paying

in

income taxes,
paid the gov$120,000, plus what this
money would have earned at interest, over the rest of his working lifetime.
His father would
that

year

a

he

will

have

ernment

retire

been able to

have

It is

sum.

a

of

million

j

d

^
UP a

,

.

„

this

could

questions

in

tion

might

that

own

seven

common

country how

think

you

many

be

manage

situation

unpleasant

folio?

for

most

a

cons^er

he

when

eventual

retire-

rnent.
solve

the

vital

»ng ^Qr ^
^at

0f

mus^

people

problem

of

ahead in

years

gives

jeasj.

help

must

you

them

those

w^j1

who

0f

their

trust

brokers,

and

.

Most

*

people

,

.

dumb

j

luck.

j

j,

today

their

investment

not

do

even
,

particular

own

problems.

that

beavers

they

to

They only

are

working like

up

with rapidly

keep

advancing

inflationary

and

costs,

their

,

understand

know

friends,

their

i

living

confiscatory

if

they

like

would

keeping

invest

left

some

it

so

that

they

way,

later

Many of them don't

where

they

at
you

their

think

you

view

of

man,

or

the

taking

$10,000

between

hard

this

much

for American

the

and

middle

successful

the

brackets

invested

in

of

the

one

the

capital

high

very

had

many

corporations.

of

initiated
our

of

stead

stocks,

people

and

greatest

are

in¬

tax-exempt bonds in¬

risking

and
are

in¬

Today the people in

high income brackets

vesting in

which

business, after those

in

were

come

the

their

funds

middle

in

bracket

paying the government

in taxes what

have

from

$4,000

working

group was

provided

the

it

they formerly could

invested.




correct

other

I

own

all

like

to

of

doing

S.

tourism

a

to

U.

encourage
has

merce now

a

able special

very

in

its

hotel,

Special
Travel

of

Advisory

Committee

the

under

Commerce—an

Department

able

group

of

whose function
the

nate

and

efforts

is

of

coordi¬

to

government

private business in the tourist

field.

From

the

Department

Commerce and its
we can

of

representatives,

expect much in the months

to come.

doubt

no

tries

that

his

he

own

have

is

visiting

will

two

are

(1) How

he

can

retire

some-

A

few

great

weeks

good

to

that

realize

the

How

he live today with

can

leff amou"t o£ w°rry and

enjoy the largest current income?
«ost people ,wl11 fal1 'nt° ona

of the above categories. Find out
®
what people need, and then show
\
*
'
,

j

had
be

to

United

States

the

asked

Mr.

conference

Streibert

Its purpose was

sence.

and

ways

could
about

con¬

his

ab¬

doing a
job
of
establishing
friendly personal relationships
the

of

convey

America

the citizens of

its

and

beliefs

to

countries.

overseas

,

tham how ypu can heIp tbem
achlfye investment access You
must know your b"slness before
you

acquire

can

the

confidence

poise

which

,

and

enables

advice because I have

confidence

your

investment advisor."

ability

and

integrity
When

ment

business

will

relationship that

To

me

he

show

can

opera¬

most

re"

of

our

be completely discarded, both by
governmental regulatory agencies
the

securities

business

those engaged in selling

to the public,
Simplify your
business

Classifying

securities

by:
clients'

prob-

the

to

save

time.^
Using two words instead of ten

whenever

you can.

"MERRY

agreed

we

CHRISTMAS"/

to respect the

...

man's point

of view

elers

such

all

come

phrases

to

realize

"good will,"

as

"contacts between peoples," "mu¬
tual understanding" have devel¬

oped

a

last

decade.

special meaning during the

Today,

source

from

the

of

United

the

united

be

tremendous

a

done.

It

efforts

will

cf

require

government

heads, transportation leaders, and
businessmen
towards
ices
.

.

.

.

the

.

onnel

work

in

all

these

areas

improving carrier serv¬
more
building of hotels
training of sufficient perand developing effec¬
.

tive

.

.

.

of

promotion. The job can be
done—and if one considers that a

benefit to both parties. Such con¬
are of enormous value when

potential market of several billion
dollars
lies available the effect

out

business

a

to

...

relationship

handled, doing

eliminate

American
time

to

the

time

greal

a

false

business
have

deal

notions

which

been

required is very small indeed.

of

Summary

from
In

propa¬

gated.

Keeping in mind these various

the
in

Americans

this

overseas, I would add
in
passing that there are two
points particularly desirable for

American

travelers

friends

our

of

stress

overseas.

First,

proportionate

dominant

our

to

to

S.

tourism

is

weapon

in

war

I

of

think

war

of

ideas—and

economic
the

competi¬
growing tide of

tourism

gives us a spendid
opportunity to show all the world
what
men

the
can

free

movement

of

free

accomplish.

the

V

class—

growth specifically the result of

a

the

tion.

growth

middle

a

East-West

untrue assumptions that are some¬
times
made
of America
and

U.

powerful

summary,

becoming

Second, the
genuinely peaceful intentions of
our
bi-partisan
foreign
policy.

these

are

Both

of

dent

overseas.

have

highest

remains

to

other

to

American

constitute

v

•••••

V'

V

>

thaft;Our free society.

our

to

these

here

us

detailed

facts

are

and

require

discussion.

Don't sit back /

self-evi¬

For

J/

no

various

reasons, however, neither of them
has received
the attention
they
deserve
abroad.
They are not

concepts

easy
and

to

to

convincingly.

simply

convey

Again, it

seems

powerful strategic weapons in the
defense
of
man's
financial
and

that the average American
traveler can do the most effective

personal freedom.

job of putting them

interesting
age

of

probably

traveler

the

most

through

namic

that

an

in

our

communications

mass

individual
dium

It is rather

paradox

ideas

still

be

remains

effective

which

can

the

me¬

these

dy¬

conveyed

to

others.
The
of

the

is,

average

that the

influence

tourist—the

vaca¬

tioner, the student,
the casual
visitor—is one of America's great¬
est assets in
foreign relations. In
the

me

of

course

trips

many

overseas

recent
on

busi¬

behalf

of

that go abroad each
year
do have a crucial role in

can

States
Information Agency has been do¬

ing excellent

work in conveying
travelers, the communica¬
tions job which has to be done
by them overseas. They have put
to

our

explain¬

derstanding

courtesy, their
of others, they

un¬

can

undo many of the
misunderstand¬

ings that have

grown

up

in

several

discussing
improving
friends
what

have

leaflets,
means

with

of
our

and

telling them

We

think.

we

and

relations

overseas

Express
with

excellent

ways

at

American

followed

through

leaflet titled "Ambassadors

a

of Good

which

Will,"

we

are

on

the

same

giving

to

theme,
all

our

STRIKE BACK!

clients.
Role of Tourism Today

and

ing America and America's aims.
By their easygoing
friendliness,
their common

across.

Incidentally, the United

out

fact

I have found this to
be true again and
again. The mil¬
lions
of
United
States
citizens

letters.

telephone

course

my company,

Talking less technically.
Using

In the

pro¬

country ig best under¬
stood through our people—in this
case
through our individual trav¬

ness

terns.
Gaining their confidence,
Writing shorter

was

and

own approach to

your

the conference

discussions,

always

can

have with our clients- To exPect
\ at the avera&e layman should
,,n°W enougl:1 to invest successa y 1S a cpmPle^ly unrealistic
a tltu(ie which must eventually

clearly
concisely his ability to give

astonishing

foundly interesting.

We

have

we

•

,

we

ln the invest"
we

gained the highes? and most

this

men.

that

,that polnt

wonderful

a

as

.

0

were

group of extremely realistic yet
far-sighted
American
business¬

„

peopla 0 say to y0"> ,You tel1
™ what to do and 111 follow your

get

Attending

There

job

specific, familiar

commercial

take

to discuss

whereby
we
the
truth

means

better

to

in

these

now

States.

is

good

well

this

from

even

third

Agency, to take part in a Wash¬
ington Conference in the White

duct

Earnings
tourists

dollars

on

here.

at pres¬

very large to these areas,
already growing rapidly. The

earned

Meeting

East—are

S. tourists to India,
example, has been increasing
approximately 25% per year, ris¬
ing
almost
300%
from
1951's
figures to 1955's expected total.

we

with his opposite number abroad.

the

for

and

tacts

President Eisenhower had

Middle

India's

American businessmen

in

but in
countries

areas,

importance

being

very

5

more

ent not

made

Information

requested

(2)

I

ago,

fortune

the

by representatives of U. S.
companies traveling overseas. The

are

a

number of U.

of the most fruit¬

some

ful contacts of this sort

and

particular

it is

fund

over

tourist

phase,

Point

play
not only

Although U. S. tourism is

its

and

the

by Theodore Streibert, Director of

House.

^y?

Addition to

Asia
of

add

operations

overseas

that

can

role,

cer¬

ended.

not

Turkey, the Arab nations, Israel,

the

and

friendliness

come

over

tions,

Voice of America

pro¬

India—indeed all the countries of

And I want to add here that in
our

believe

underdeveloped
needing dollars.

Everywhere,

very considerable
will for America.

a

of good

I

dollars

important

daily contacts, he is
impression. When he

his

has

all

restaurant,

a

train.

a

an

grounds
An

aid

the present competitive

tourist

the

honestly to understand

to

up

to

goes

takes

through
making

role

traditional

is

then

then

President

encouragement.

other

cur

important role in
emergency assistance

this

however,

things his country
his basic simplicity,

country

for

aid.

an

earlier

tainly

majority of our travelers are do¬
ing just this. The tourist visits a

habits,

Eisenhower has also reestablished

the

the

There

consultant in the travel field, Mr.

Waters, to coordinate
existing data on tourism and to
develop specific further technique

in

had

grams

misunderstandings,

for,
honesty, and friendliness.

that

is

dollars

Point 4 and

to

sense

amount

any

In

stands

parts

here

add

government

these

citizen

than

phase of the Cold War—and

pride

world.

would

our

in

resulting
distribution
of

dollars for

American

dependence

greater
a

has to get across his intense devo¬
tion to peace, his quiet sense of

areas,

equal

inevitably produce
self-respect, and less cf
of

to

energy

important,

giving an accurate version of the
simple truth. He's the one who

bring

numbers

greater

tourist

the free

to his investments:

comes

in all walks of life. In former

years

who

cynical

Income taxes

over.

year

a

bracket
man

a

professional

business executive today,

just think it
are

is

this

average

of

the

spected

someday, if they live.
If

to

more

S.

income

American citizen must solve when

on

even

going to be

are

visitors
in

U.

will

try

big problems which the successful

an

understand how they got this way
and

There

expenses.

can

little nestegg for

a

life.

in

anything

to

provide the

in

somehow,
have

living

income
year

have

and

increases

tourism

visiting

and

the

taxes, and at the end of the
they

that

coming

States

executives from the travel indus¬

faced

are

predict

way

kejng successful, or

assjst

to

sav-

a

hope

some

I
that

encouragement,

venture

greater

on

Today

the

Most

they
of

Tour¬

kind attached.
among all who

initiative and

them.

attract

An example is

our

any

shared

are

have the

deliber¬

100%

Somerset

.

prop¬

They just don't know and

they

would

been

•

of

spent abroad with¬

are

strings of

They

spontane¬

up

superiority of his own
country over all others. It's up to

while Europe will continue to at¬
tract
ever
growing numbers of

the

investment port-

an

proper

misunderstand¬

have

to. be

seems

ist dollars

continually boasting of

the

great

lot

investments that can

GROW, he is going to face

examina¬

required

determining their ability, to

erly

the

answer

simple

a

ing

a

American

Ass.im-

abrfoad. The Department of Com¬

build

,
,.

,

regions has

offer the tourist.

which they now need for current

than

more

people who
in

stocks
do

the

of these
to

others

r'

"J
one
.

the caricature of the self-centered

Asia,
Africa,

deal

these
grown

ately encouraged.

for the Near
and South
America, and the Pacific nations.

Each

of

have

ously,

of the world

areas

such

reassuring fact that unless he gets
b

the

non-

on

chilling and

a

for

Free

for

United

curities

Investments

Out

for

East,

travelers,

ancj

age>

assets invested in the type of se-

Do

—

Some

ings

without restraint.

.

strongest cgrds to this end.

States and her intentions.

tourist

.

.

Point 5

out

meaning

underdeveloped

ideas

minds of others about the United

haven't

the

about

real

very

remind him that if he is 30 years

s0,

People

facts

0f

be

too many words.

were

finds
even

t

different,

clever, and they didn't because
they tried too hard, and there
I study the

taxation

sales letters that

were

be

to

much

so

an

and

income
able

don't have
encyclopedia of

where he

mulate

other

other

my

out

economics
him

your

have

you

bring

their

wasting

Faced

Be

jn his thirties you

you

time with long-winded sales talks
and

ness

to

Facts Must

talk with the busiexecutive or the professional

man

neighbors

there's something a little

.

.

competitive about travel.

Simplify Your Sales Presentation
People today
hurry. They

can

Salesma The New Role oi Tourism Abroad
By JOHN BUTTON

stability—where free men
live, and move, and exchange

the

It

is

nomic
that

within
and

I

this

general

would

place

statements

my

regarding the
touri'sm today.
To

keep

nations

of

eco¬

ideological framework

the

earlier
role

of

underdeveloped

the world

self-reliant,

Give to

AMERICAN CANCER SOCIETY

X.

Volume

182

Number 5492

.

.

The Commercial and Financial Chronicle

.

(2775)

Continued

from

ties

14

page

in its
creation, agreed that
language would satisfy them.

the

This

Progress and Problems oi

pect

new

America

agreement often spreads with

credit

grantors.
It is
to us, as members of the Ameri¬
Finance

can

America

Conference,

looks

judgment

panding

in

for

healthy

a

that
credit

sound

and

ex¬

strength

tion is founded

appearing

as

organiza¬

an

in

*■ one

ber of

the bedrock of

on

one

case

happen, and in
this resulted in

further

automobiles

is

as

principal means
through careful

a

transportation

extension

of

credit

consumer

-All

of

well-being

which alone is responsible for au-

mind

can

tomative

putes

of

tribution."
The major problem confronting
the sales finance industry
today is
that

of

maintaining sound credit
For my part there can be

terms.

substitute

no

for

the

time-tested

fundamentals of instalment credit,
which permitted this remarkable

development of
hands

all

of

industry.

your

Gentlemen, the

rests in the

case

credit

in

giantors

the instalment credit field.
The

Subordination

to

the

on

like

substantialThis

to

the

class

one

of

of

you.

problem

subordination, that is, the
which

is

to

debt

ordinated

subordinate and junior

way

in

in right of'

payment to another.
The lifeblcod of the finance in¬

steady supply of loan¬

a

able funds.

Since

could

pany

without

finance

no

carry
use

of

the

com¬

and

on

grow

borrowed

funds, anything which threatens
to jeopardize your source of loan¬
able

funds

is

necessarily

im¬

of

portance to you.

As you are well
principal borrowings

the

aware,
of

is

companies

your

from

com¬

mercial

banks,
represented
by
short-term, unsecured notes. The
repayment of this debt has a gen¬
eral

claim

your

upon

asse.s.

Along with this short-term bank
debt, you often have long-term
debt from
A

institutional lender.

an

portion of this is subor¬

large

dinated debt,

meaning that its

re¬

payment is subordinate and junior
to. the

term

type

of

repayment
To

notes.

short-

your

obtain

this

latter

of

borrowing you pay
rate of interest and it

higher

a

is

largely this higher rate of inter¬
which makes a lender willing

est

to take notes which are to be

senior debt.

an

be

Regrettably,

times

at

terms

the

which

by

the

in

past there has been dispute

over

junior

class is subordinated to the senior

class.

The

dispute

has at times
Many
lenders
of

bitter.

teen

short-term

senior
money
have
felt that there has been a gradual

encroachment

what they
think,, and I believe rightly,
should be a position of unchal¬
lenged superiority.
I have dis¬
upon

cussed this from time to time with

of

many

-Lenders of subor¬

you.

dinated indebtedness, on the other

hand,, have felt that their position
should be junior only in the event
certain

of

happenings, and r.ot
that inyany case
not so specified, they should be
on a par with senior debt.
I might
say, parenthetically, that this dis¬
pute is not entirely between com¬
otherwise,

and

mercial banks
surance

one

company

side and in¬

lenders

the

on

Some insurance companies

other.
have

on

as

senior

much

debt

ordinated
With

as

of

need

First

as

the

on

full

lenders

of

was

died

out

and

progressively

the

structure

weakened.




A

of

last

few

weeks

lenders

the

from

us

in

re¬

repre¬

both

classes

mir.d

I

per¬

comments,

answer

lay

early

The

counsel

for

surance

The

York

Life

quently

New

represent

who

our

bank's counsel

problem

of

determine
were

good

lender

they

guage

in

also

mind

that

produced

the

best

this.

I

would

have

but, on the
new
language

In

my

But let me
opinion, this

the

We

senior

a

bare-bones

have.

must

as

It

rep¬

lenders

the

of

has

been

be¬

not

feel

let

bankers

that

banks

or

been

in

a

state

better

of

a

may

solution

atiorR

this.

that

de¬

much

a

V

From that

meeting held in early
Winter of 1955, there came 'ulti¬
mately a series of drafts of sub¬

If this

is

at

not

hand.

This

considered

well fit

Because

I

draft

situ-

many

am

is

convinced

the

It

was

that

men

that

at

it

by

would

be

the drafts¬
impossible

previous

draftsmen

therefore

an

open-minded

Joins Merrill
:

"

recep¬

they must work from exist¬

it

into

lem.

something to fit the prob¬
Finally, by late August of

1955, the draftsmen agreed upon
final set of provisions. The two

a

banks
pany,

and

the

insurance

com¬

originally the moving par¬

out

factured

A

potential

increased

market

for nearly
appliances of all
types is thought to exist over the

million

next five

gas

years,

LP

mixed

or

LOS

of all

types. It is anticipated that
heating requirements
by

space

1957

should

be

In

1955

about
and

,M#icPherson is now with Mer¬
" Lynch/ Pierce,
Fenner
&
Beane, ,523 . West Sixth Street.
•

•

•

'

-~f

'

0.4%, the
industry being

now

way

about

mile

1.200-mile

line

Pipeline

of

Pacific

Company

Northwest

from

the

San

*

•

are:

(1) A line from the Peace River
Canada

down

to

S.

border,
Which
Will
serve gas to British Columbia and
also to the U. S. through a conPacific

Northwest

(2)

The

Canada

2,200

Line

the

be

mile
Transfinanced by
interests,

Canadian

and

with

(to

the

Canadian

contributing)

Government

from

the

west

to

bring

Ontario

to

gas

and

Quebec.

(Special-to The Financial Chronicle)
.

LOS

ANGELES, Calif.

Freeman

A.

and

become

Shearspn,
South

&

Avenue.

Elisa

Leitch

associated

Hammill

Grand

—

Donald

with

Co.,
Mr

520

Leitch

formerly with H. Hentz & Co.

was

(3)

Tennessee

sion's

proposed

from

which
the

Gas

1,112

Tennessee

will

South

through

a

get
and

Transmis¬

mile

line

Minnesota

to

half its gas from
half

from

Canada

connection with Trans-

Canada.

(4) Texas Eastern Transmission

Joins Baith Staff
ANGELES,

LOS

Mexican

with

J.

Barth

been

&

Calif.—Willis
Co.,

conducting his
thereto

Witter & Co.

was

own

Texas,

invest¬

to

bring

a

line from the
to

Beaumont,
gas
from

in

Mexico.
In

West

Mr. Mathews has

ment business in San

prior

210

border

•

E. Mathews has become associated

Seventh Street.

to build

proposes

(Special to The Financial Chronicle)

addition

plications
made for

to

a

the

number

FPC

substantial

of

have

ap¬

been

construction

Marion and

of

with

Referring to the underground
storage program, early this year

Dean

The

been

loop lines,

clothes

dryers

incineration

gas

units

reported to be increasing,
work

on

these

ap¬

current housing boom has
primarily responsible for a

marked

increase

customers,

and

in

in

utility
Nearly

gas

sales.

1.2

million starts have been made
thus far in 1955. The great
of

these

homes

were

constructed within franchise

areas

of

utilities, who have added
approximately $1.0 million cus¬
gas

tomers

since

"MERRY

October

1954.

CHRISTMAS"!

Two With Samuel Franklin
(Special to The Financial Chronicle)

compressors,

etc.

-

:

LOS
E.

ANGELES, Calif. — John
Gallagher, Bertram S. Urbach

and

Jerome

Zonis

have

become

associated with Samuel B. Frank¬
lin & Company, 215 West Seventh
Street.

&

Texas

gas

sold, a
previous

nig.

planning stage

with

the

pliances is still actively progress-

Mr. Urbach was formerly
Edgerton, Wykoff & Co. Mr.

with

to

western

were

over

Sales of gas air-condition¬

and

Oregon and Wash¬
ington. Major projects still in the

Basin

1,146,000

units

21%

automatic

ing

the

are

Pipeline
line from
Texas to Michigan, and the 1,800-

also

With Shearson, Hammill
*

gas

-

•

'^7

-

gas

mixed

under
American-Louisiana

Juan

ahead

34%, while sales of gas refriger¬
ators were the highest in recent

Some of the major construction

Company's

53%

while

Company,
nearly
doubling
latter's potential supply.

rill

.

sales

gas

nearly 14%.
projects

about

of 1954.

only

the

for

pur¬

pre¬

manu¬

16%

and

consumer

power remains at present
levels. Of this number, about onethird would be gas heating units

ponderance

Natural

gained

revenues

average

Cal.—Richard

ANGELES,

mixed

39%.

if

chasing

Sales of gas ranges increased
13%, water heaters 23%,

bottled

increased

revenues

in

offset

year.

$1,205
inclu¬

1954, while

over

and

ground

of

of straight natural gas.

high, 8.4%

the

gain

The indus¬

with

of

1954, this was more than
by new discoveries, etc.

year

at

manufactured

use

nection

Lynch

(Special to The Financial Chronicle)

,

patterns.
decided

taken

beginning of

trillion cf had

househeating

and 5 million customers who

in

tim^ to

with

been

9

con¬

has nearly $16 billion in

U.

start absolutely
drafting their language,
everyone
was
generally fa¬

miliar

over

esti¬

in

anew

for

decided

While

an

1955-1958

served

the

have

equitable solution.

an

1955.

new

forecast

for

of natural

high level of

new

next

For

The gas

give it

I

graSped a sense that the
problem was soluble so long as
each side was seeking in fairness

increase.

nearly

area

tion.

ordination' language. I took great
interest iri them
and from this
work

is

total

assets.

acquaint yourselves with it and

f

'

1955.

and

now

gross

JL.

k

=>.

5%

a

$4,300 million.

to

be

.

in

amount

try

The

industry
spent
$1,385 million on

struction

to

usually 10 to 15 years, jail
contingencies of this kind must
.7

constructed.

represented about

problem of

accepted

riod,

foresee*).

also

manufactured

availability of generally
subordination language
will benefit all of us, I urge you

insur¬

,pe¬

22,000 miles of dis¬
storage lines which
require
FPC
approval

and

not

were

com¬

and

tribution
did

been

additional customers converted

industry is

be that

to the

a' caref ully

suit¬

long

pleted;

has

use

aggressive

subordination may appear.

Quite to the contrary.
because the subordination

Yet,

two-thirds

as

of disaster.

agreements extend for

about

to

generally quite favorable.

velopment, it

the brink

on

tion of about 4,500 miles of trans¬
mission line in
1955, of which

Natural gas sales reached a new

Because the finance

still

being so me¬
ticulous
in, drafting clauses re¬
lating to bankruptcy, dissolution
and other'doleful provisions are
are

construc¬

nave

early to speculate upen
reception the new language
will
receive.
Early indications,
with one yigorous dissent, have

companies in

fearful that you

authorized

storage
billion
cf

reserves

a

212 trillion cf at the

60

FPC

many

by
wno

It is too

bear

add

The

the language.

which, should

me

gas

still

the

industry.

aside,

an

of

fuel, etc.

gas,

reflected

fellow

my

studied

the two

was

househeating load
selling summer supplies
at low prices as boiler

for the

this

to

,

As
Do

and

in-

to

instead of

take

lennium

of

possible

the

crease

minimum

cannot

which

for

it

reached

research

far

as

happens, I ..shall be
delighted.
Unfortunately, however, the mil¬

classes

make

Recoverable
gas

but.

is

industry, because we could solve
problems only by a solution

able

also

In particular situations we gas.
The number of natural gas
undoubtedly insist on more.' customers increased almost 2,003,000
in
1955, some of this gain
sound, well-managed
company, I think this is adequate being at the expense of manufac¬
and fair.
tured and mixed gas customers,
My personal feeling on

interests of the

acceptable to

be

add

of

these facilities in 1955 and it
is estimated that
$187 million will
be spent for the period 1955-58.

houses

But

our

was

will

sive at

see

Pacific

will

pools

on

completed,

states

receiving natural gas. Greater use
of underground storage facilities

million

to

lan¬

must

we

is

48

will

acute.

whatever

of

and

established
the

less.

in regard
to a subordi¬
lender.: They were to re¬

member

lender

out

added

we

which
to

Mexico
in

as

When

areas.

the

things

some

resents

They
were
than
to
create
language
which would, if possible, resolve
these sore points and fairly re¬
flect the position of a superior
nated

well

as

S.

cf

12

will

1,859
capacity at the beginning of the
year. About $75 million was spent

weakening this position.

fre¬

and

dispute

increasingly

Canada

new

are

discuss the

points

sources

U.

tapping

program,
of
gas
in

also

directed

faith

the-sore

causing the

come

to

I

the

The

construction

years.

substan¬

very

to

under

industry is now serving
37 million customers, in¬
cluding about 7.5 million isolated

much

insurance lenders.

billion

space

6,395 active storage
operation in 172 pools

lender could go without seriously

York,

with

tial

200

mated

horse-trading,

language

In¬

of

firms

about

have had

add

with

meet

senior

between^ the parties.

Bank

lender

law

now

whole, I feel the
is adequate to our need and fair

experience in this field, and with
attorneys of several of the majcr
New

located in 17 states.

completed,

confused

The

liked

Chicago

Mutual

Company

insurance

an

of

in

are

of

The

Manhattan

wells

give way to some things. And
so, too, did the other side. There

urgent

year

Fank

Chase

their

counsel

this

the

to

would

classes

like

as strong as possible. Be¬
reaching a compromise in¬

cause

volves

sensible solution to the

a

would

position

between

this

thought that the period of major
pipeline construction was about

the

un¬

both

were

ago

pipeline

If you would like
my own

Industry

there

struction

been

sonal

wholly

which

it

was

46

you

ing patterns of language to mold
inroad

superior debt viewed full subor¬
dination, protests were raised. But
these

be

two

or

northwest

for

make

only

National

and

that

new

subordination,

dis¬

Some

battle

ho

in

problem,

they have in sub¬

debt.

each

The

Having

The

more

state

throughout the country
very
gratifying.
The
typical comment reaching me has
been along the lines — we have

lenders arid thus end the
dispute.

invested in

or

this

arrangement

agreeable

ance

the

of

re¬

paid only after the repayment of
the

To

lenders would

had

dustry is

lender.

victim

of

is made

such

them.

upon

the

now

think

I

importance

relates

made

year

has

in

demand

enormous

fortunate.

comment

which

matter

a

to

Yet

us.

the

they are these.
I think the
industry will be bene¬
minutes
ago *we
reviewed how
fited
by
having
subordination
uuiy
enormous
tnis
need
is.
available
which
will
Hence, your - companies, as the language
borrower from both sources, must satisfy the majority of lenders in
each
camp.
As representing a
satisfy each class of lender, the
superior lender as well as the sub¬ large commercial bank, naturally
credit

in

should

that

of

could

only harm the indus¬ needed
this type of cooperative
try. Your companies need a great
-approach and the suggested draft
supply of funds of both types of
of language is a fair
compromise.
borrowing if they are to respond

the

of Debt

Problem

.

I

realize

all

reaching

sentative

can

production and dis¬

mass

draft

remember

the

sponse

and

industry

your

single

please

A

scattered

with the interest

us

any num¬
the desired

By OWEN ELY

Outlook for the Gas

are

to reach

no

we

In

companies.

of

Utility Securities
=

perfect document.

a

commendable.

least

at

Public

sus¬

but despite a highly
regulatory
picture
at
things
existing
previously,
we Washington, the industry has not
think by comparison the
language hesitated to plan a vast new con¬
when

blocking
one of your

borrowing by

and

possibly

chipping away at subordina¬
continued, a real impasse was
inevitable. Early this year this in

unity of purpose; to make
possible the private ownership of
our

fa¬

now.

and I

do not sug¬

we

There

ways

result

inevitable that, as this grad¬

did

of you

is

Far from it.

sur¬

ual

fact

it

minded reception

prising speed to other agreements.
This was a continuing process. It
was

language is

some

that

very rapidly be¬
coming familiar to most of you.
In asking you to
give it an open-

tion

economy.

"Our

feature

to

gest that it is

ployer, is largely in the hands of
s

new

miliar

Consumer Credit FinaiK i ag

35

Zonis

was

with

Cantor, Fiztgerald

Co., Inc.

With T pstpr Rvnnc
Wlin L-esier, ivyons
(Special to The Financial Chronicle)
SANTA ANA, Calif.—Lawrence
S. Mortenson is now with Lester,
Ryons & Co., 1606 North Main St.
—_...__...

The Commercial and Financial Chronicle

'

36

(2776)

.

Thursday, December 22,1955

..

I

* INDICATES

Securities Now in Registration
Allied-Mission Oil,

•

filed 900,000 shares of common stock (par $1)
shares of preferred stock (par $10) to be
cffered in units of one share of each class of stock. Price

Aug. 8
and

900,000

—$11 per unit. Proceeds—For construction of hotel and
related activities and for contingencies, stock in trade,
and

working

Underwriter

capital.

withdrawn Nov. 29.

—

None.

Statement

•

Alpha Plastics Corp. ■
Nov. 18 (letter of notification) 300,000 shares of class A
.Mock (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
—

Ave., New Yor.k 17, N. Y.
American Business

Dec.

(letter of notification) 19,000 shares of nonpreferred stock.
Price — At par ($5 per
share). Proceeds—For working capital and general cor¬
porate purposes. Office—8002 Wisconsin Ave., Bethesda,
Mel. Underwriter—rG, J. Mitchell, Jr., Co., 1420 New
Ave., N.W., Washington, D. C.

if American & Foreign Resources,
Dec.

19

* Coastal States Oil & Gas Co. (1/12-16)
Dec. 19 filed 500,000 shares of common stock (par $1),
Price—To be supplied by amendment. Proceeds—To pay

expenses incident to mining
441 Thatcher Bldg., Pueblo, Colo.
Underwriter—Investment Service Co., Denver, Colo.

off loans incurred for land

stock

(par five cents).

acquisition

exploratory
Wall

work

Price—25 cents per share. Pro¬
mineral, etc. properties, for

of

working capital.

for

and

St., New York, N. Y.

Office—80

Underwriter—None.

i; Anchorage Gas & Oil Development, Inc.
Dec. 19 (letter of notification) 50,000 shares of

Office

Anchorage, Alaska.

Underwriter

Grace C.

—

Tucker, Seattle, Wash.
Arizona

Public

Big Ridge Uranium Corp., Reno, Nev.
notification) 9,000,000 shares of common
stock (par one cent). Price — Three cents per share.
Proceeds—For exploration and development costs. Office
—206 North Virginia St., Reno, Nev. Underwriter—Mid
America Securities, Inc., Salt Lake City, Utah.
Oct. 19 (letter of

Big Ute Uranium Corp., Overton, Nev.
Oct. 28 (letter of notification) 3,000,000 shares of com¬

of the

Co.,

Phoenix,

Ariz.

Bonus

insurance

firm.

Assateague Island Bridge Corp. (Md.)
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—
Oct.

Statement effective

Nov.

4.

Industries, Inc., Houston, Texas
(letter of notification) 200,000 shares of com¬
(par one cent). Price—$1.50 per share. Pro¬
ceeds—To purchase dies and materials and for
working
10

mon

stock

capital, etc. Office — 6006 Harvey Wilson Drive, Hous¬
ton, Texas. Underwriter — Benjamin & Co., Houston,

Proceeds—To open

Business

stores.

Northwest

—

Supermarket

37th Ave.,

addi¬

concern.

Miami, Fla.

Under¬

(John K.)

Co., Grand Rapids, Mich.

16

$5,000). Proceeds—For general cor¬
Office—217 Division Ave. South, Grand
Underwriter—None.

and

$2,000

$1,000,

if California Eastern Aviation, Inc.,
Washington, D. C.
Dec. 6 (letter of notification) 14,521 shares of common
stock (par 10 cents) to be offered to certain individuals
in satisfaction of outstanding indebtedness at rate of
$3.81 per share.
Office—1744 G Street, N. W., Wash¬

Colohoma
Nov.

Plywood Corp., Boston, Mass.
Nov. 14 filed 100,000 shares of common stock (par
$1)
to be offered in exchange for the outstanding 291,431
shares cf

stock of

common

Plywood, Inc. at an exchange
presently owns 496,-

ratio to be determined later. Atlas

680 shares of

Plywood, Inc. stock and desires to acquire

additional 133,809 shares in order to bring its
holdings of such stock to 80%.
an

if Atlas Plywood Corp.

(1/12-16)

Dec. 19 filed

$3,000,000 of 5l/2% convertible subordinated
1975 and $3,000,000 of 5% sinking fund
debentures due 1971.
Price—100% of principal amount.
Proceeds—To increase inventory and to retire subsidiary
debentures

due

indebtedness.

Underwriter—Van

Alstyne, Noel

&

Co.,

New York.

if Atlas Plywood Corp.
19

filed

issued

49,684
upon

shares

rants, which warrants
warrants

to

of

stock

common

the exercise of stock
are

to

purchase shares

(par

purchase

$1)

war-*

be issued in exchange for
of common stock of Ply¬

wood, Inc.

Canuba

Get.

Manganese Mines, Ltd.

filed

27

500,000 shares of capital stock (par $1Price—$1.50 per share. Proceeds—For ex¬
ploration of mining properties in Cuba. Office—Toronto,
Canadian).
Canada.

Underwriter

—

Baruch

Brothers

&

Co., Inc.,

•

Caribou Ranch Corp.,

Statement withdrawn Nov. 17.

ties, etc.

Natural

Cascade

Gas Corp.

$3,589,450 of 5V?% interim notes, due
Oct. 31, 1960, and 71,789 shares of common stock (par
$1), being offered first to common stockholders of record
Dec.

units

in

9

the basis of

of

$50 of notes and

one

Comet Uranium

Aug. 20

—White, Weld & Co., New York; First California Co.,
San Francisco, Calif., and Blanchett, Hinton & Jones,
Inc., Seattle, Wash.
•

Century Acceptance Corp.,

Kansas City, Mo.
$750,000 of participating junior subordi¬
nated sinking fund 6% debentures due Nov. 1, 1970 (with
detachable common stock purchase warrants for a total
of 22,500 shares of common stock, par $1 per share).
Price—At 100% (in units of $500 each). Proceeds—For
working capital, etc. Underwriter—Paul C. Kimball &
Co., Chicago, 111. Offering—Expected in January.

Nov.

7

filed

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

shares

to

be

share.

ing

Proceeds

For expenses incident to
mining
Office—810 Deseret Building, Salt Lake
City,
Underwriter—Utah Securities Co., same City.

of

voting common stock, class B

offered

in

Price—$5

capital.

Building,

Private IVires




to

all

offices

Cleveland

(par

Corp., Washington, D. C.
700,000 shares of
cent).

Price—Five cents

com¬

share.
Proceeds—For mining operatiens. Office—501 Perpetual
Bldg., Washington 4, D. C. Underwriters—Mid America
Securities, Inc., Salt Lake City, Utah; and Seaboard
Securities Corp., Washington, D. C.
one

per

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 92,084 shares by a selling stockholder.

Price—$1.50 per share.

Proceeds—For general corporate
Underwriter—Central Securities Co., Dallas,

purposes.

Texas.
•

Corpu« 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.
Under¬
writer—None.

Statement effective Nov.

Cross-Bow Uranium

8.

Corp.

Aug. 29 (letter of notification) 5,000,000 shares of com¬
mon
stock.
Price—At par (six cents per share). Pro¬
ceeds
For mining operations.
Office — 1026 Kearn#
Bldg., Salt Lake City, Utah. Underwriters—Potter In¬
vestment Co., and Mid-America Securities, both of Salt
Lake City, Utah.
•

Cuba

Nov.

(12/27-30)
4% Veterans,

(Republic of)
filed

21

Public

$2,000,000

Works

bonds

amendment.

of

due

Proceeds

1983.

units

of two

class

A

(par

and

10

one

cents)
class

B

unit. Proceeds—For general work¬
Office—505 National Bank of Commerce
per

Charleston,

W.

Va.

Underwriter—Crichton

Dec.

filed

16

be

Romenpower

Underwriter—Allen &

Inc., Cicero, III.

180,000 shares of

be

Minerals

Delta

Sept.

20

Co.,

Casper, Wyo.
600,000 shares of

(letter of notification)

assessable

common

non¬

stock (par five cents). Price—50 cents

Proceeds—Expenses incident to mining oper¬
ations. Office—223 City and County Bldg., Casper, Wyo.
Underwriter—The Western Trader & Investor, Salt Lake
City, Utah.
share.

per

if Del-Valley Corp.
Dec. 13
(letter of notification)
bonds
terest.
To

due

in

two

years

Price—80%

reduce

of

$235,000 of junior lien
from date of issue without in¬

principal

&

amount.

mortgages and for construction

—Cherry Hill, near Camden, N. J.
Co. Incorporated,

Proceeds—
cost.

Office

Underwriter—Blair

Philadelphia, Pa.

Dennis Run

Corp., Oil City, Pa.
Nov. 28 (letter of notification) 46,000 shares of common
stock
(par $1). Price—$6.50 per share.
Proceeds—To
pay
bank loans and debts; and for working capital.
Office—40 National Transit

Bldg., Oil City, Pa.

Under¬

writer—Grover O'Neill & Co., New York.
Dinosaur Uranium Corp., Salt Lake City, Utah
Aug. 15 (letter of notification) 15,000,000 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
ceeds—For expenses incident to mining activities. Office
—15 Exchange Place, Salt Lake City, Utah.
Underwriter
—Western States Investment Co., same city.
Dix Uranium

Corp., Provo, Utah

Aug. 10 (letter of notification) 6,000,000 shares of non¬
assessable capital stock.
Price—At par (five cents per
share).
Proceeds—For mining expenses.
Office—290
North
Weber

stock
(par one cent).
Price—Three cents per share.
Proceeds—For mining expenses, etc.
Office—2630 South
2nd West, Salt Lake City, Utah.
Underwriter—Denver

Dec

Colo.

Courts and
supplied
Electra
Co., New York.

Price—To

To

common stock (par $5).
supplied by amendment. Proceeds — To¬
gether with $4,750,000 to be received from loan by in¬
stitutional investors, to be used to retire present funded
debt and to expand production facilities. Underwriter—
A. G. Becker & Co. Inc., Chicago, 111.

To

—

Cisco Uranium Corp., Salt Lake
City, Utah
Aug. 10 (letter of notification) 7,000,000 shares of capital

Securities, Inc., Denver,

—

if Danly Machine Specialties,
(1/10)

—

Investment Co., same address.

San Francisco

Underwriters—

of notification)

one

Parking Service, Inc..
Aug. 1 (letter of notification) 120,000 shares of non¬
voting common stock, class A—(par 50 cents) and 60,000

Philadelphia

(letter

stock

mon

share of stock

unit for each six shares of stock held;
rights to expire on January 4. Price — Set at $54.50
per
unit.
Proceeds — Together with other funds, to
repay bank loan and for new construction. Underwriters
on

Charleston

Chicago

Colo.

Corp., New York; and Shaiman & Co.,

Denver, Colo.

Price

filed

18

Utah.

Pittsburgh

Office—Montrose,

purposes.

Construction Co.

Denver, Colo.

July 15 filed 505,000 shares of common stock (par $1).
Price—$4 per share. Proceeds—For acquisiiton of prop¬
erty and equipment, construction of additional facili¬

activities.

Boston

(2/1)

2,500,000 shares of common stock (par one
cent). Price—40 cents per share. Proceeds—For explora¬
tion and development expenses and for general corpo¬

York.

share).

New York

Uranium, Inc.

9 filed

—

ington 6, D. C.

Nov.
Atlas

be

retail

(letter of notification) $100,000 of 20-year 5%
debentures.
Price—At par (in denominations of $500,

i •

Texas.

Dec.

share.

Price—$38 per

if Burch
Dec.

New

Atlas

io

Mid-America Securities,

—

B-Thrifty, Inc., Miami, Fla.
class A common stock (par

tional

Inc., Columbus, Ga.

one

Nov. 23 filed 37,000 shares of

$25).

Engineering Corp.
(letter of notification) 2,575 shares of common
stock.
Price—$10 per share.
Proceeds—For new ma¬
chinery, etc. Underwriter—Spencer, Zimmerman & Co.,
9

General Investing

notification) 3,000,000 shares of capital
cent). Price—10 cents per share. Pro¬
ceeds—For mining expenses.
Office—1154 Bannock St.,
(par

Cole

Nov.

rate

Denver, Colo.

Inc.,

Oct. 28 (letter of

stock

purchases, for construction of
pipelines and for further drilling. Business—To de¬
velop oil lands. Office—Corpus Christi, Texas. Under¬
writer—Blair & Co., Incorporated, New York.
gas

by

Oct.

at least

Uranium,

Proceeds

Underwriter—James E. Heed

mining expenses.
Co., Inc., Reno, Nev.

Rapids, Mich.

•

None.

Price—At par (10 cents per share).

stock.

porate purposes.

Finance

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

—

writer—None.
common

par
($1 per share).
Proceeds—For
incident to development of oil and gas leases.

—

Office

operations.

Office—5301

Price—At

stock.

expenses

Proceeds—For

share.

per

(letter of notification) 198,000 shares of common

ceeds—For

^

subsidiaries. Office—1028 Connecticut Ave.,
W., Washington, D. C. Underwriter—Emory S. War¬
ren & Co., same address.
i/;,;',;7;;/.''V
capital to

Big Chief Uranium Co., Pueblo, Colo.
Sept. 20 (letter of notification) 1,500,000 shares of non¬
assessable common stock (par 10 cents). Price—20 cents

Denver, Colo. Underwriter
Inc., Salt Lake City, Utah.

Inc.

share.

N. Y.

cumulative

York

.

N.

per

screw.

mon

9

H

*

Office—137 Grand St., New York, N. Y. Under¬
writer—Ellis-Greenberg Co., 1051 Carroll St., Brooklyn,

Price—$5

(par $1).

—For

Research, Inc.

ISSUE "

2,450 shares of class A common and 490 shares of clasi
B common stock).
Price—99%.
Proceeds—To supply

up a

Aloha, Inc., Las Vegas, Nev.

REVISED

Proceeds—To set

stock

—For

•

ITEMS

factory and purchase equipment and machinery for
manufacture
and sale of the "grip-lock" driver and

Sept. 7 (letter of notification) 20,000 shares of common

(letter of notification) 598,800 shares of common
stock (par one cent). Price—50 cents per share. Proceeds

acquisition, exploration, drilling and development
cf leases. Address—P. O. Box 1387, Tulsa, Okla. Under¬
writer—United Securities Co., same address.

PREVIOUS

Citizens Credit Corp., Washington, D. C.
Sept. 27 (letter of notification) $245,000 of 6% subordi¬
nated debentures due 1975 (with warrants to purchase

Automatic Tool Corp.

Inc., Tulsa, Okla.

Oct. 3

ADDITIONS

SINCE

University
Investment

Ave., Provo, Utah.
Co., Provo, Utah.

Underwriter

—

if Dunham Woods Riding Club, Wayne, III.
12 (letter of notification) $125,000 4% second mort¬
gage bonds due Feb. 1971. Price—At par (in denomina¬
tions of $500 and $1,000).
Proceeds—For construction,

Volume

182

Number 5492

.

The Commercial and Financial Chronicle

..

expansion, remodeling and improving of the Club build-:
ings and facilities. Office—Wayne and Dunham Roads,
Wayne, 111. Underwriter—None.

Farmer's

of each class of stock.

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;

To

and to expand the Union's educational activities. Under¬

Eagle 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

Price—$10.10 per unit. Proceeds—
option, which expires on Dec. 4, 1955,
acquire certain properties of the Brooklyn Eagle,
Inc.; and for working capital. Office—Brooklyn, N. Y.
exercise

an

to

Underwriter

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

share).

common

Proceeds

activities.

stock.

Price—At par

For

—

Office—214

(one cent per
incident to mining

expenses

East

5th

South, Salt Lake City,
Underwriter—Valley State Brokerage, Inc., Las
Vegas, Nev.

Utah.

of

Debentures to be sold by

Edgemont Shopping Center, Inc., Chicago, III.
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
center. Underwriter—None, offering to be made through
officers of company. Funds are to be held in escrow (if
not enough is received, funds will be returned to pur¬
chasers of stock).

salesmen, deal¬

Gary-Elliot Salons, Inc.
(letter of notification) 80,000 shares of common
(par $1). Price—$3.75 per share. Proceeds—For
establishment of new Gary-Elliot Salons and for operat¬

Dec. 9
stock

ing and working capital. Office — 1211 Chestnut St.,
Philadelphia, Pa. Underwriter—Keystone Securities Co.,
Inc., same city.'
:■
Gas Hills Mining & Oil, Inc.,

Kemmerer, Wyo.
(letter of notification) 1,000,000 shares of capi¬
tal stock (par five cents). Price — 25 cents per share.
Proceeds—For oil and mining expenses. UnderwriterEmpire Securities Corp., Las Vegas, Nev.

Aug. 1
10,200,000 shares of

(1/18)

stock (par $5).
supplied by amendment (expected to be
$70 per share). Proceeds—To Ford Foundation.
Underwriters—Blyth & Co., Inc.; The First Boston Corp.;
Goldman, Sachs & Co.; Kuhn, Loeb & Co.; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane; and
White, Weld & Co.
common

be

around

«

•

1956, at the rate of One new share for each two
held (warrants are expected to be mailed
to stockholders on that date); rights will expire about
Jan. 18.
Price—To be supplied by amendment.
Pro¬
ceeds—To add investments in the company's portfolio.
Underwriter—Stone & Webster Securities Corp., New
Jan. 4,

shares

Dec.

1

2^0,000 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
also

be

issued

to

policyholders

Insurance

Co.

insurance

dividends.

in

of

the

Farm

&

Home

exchange for the assignment of their
Price
At their respective par
—

values.

Proceeds—For working capital.
James E. McNelis and John J. Rhodes.

Underwriters—

19

stock

Market

Stearns &

working capital. Office—
Wilmington, Del. Underwriter—None,

St.,

mon

stock.

Price—At

(one cent

par

com¬

Pro¬
Office—515 Deseret Bldg.,

ceeds—For mining expenses.

Co.,

Phoenix, Ariz.
700,000 shares of capital stock (par $1), to
be offered to present and future holders of policies
issued by National Reserve Insurance Co. as an optional
dividend refund of their annual policy premium. Priee
Oct. 26 filed

share).

per

.

Co., New York, and Keith, Reed & Co., Inc.,

Great Southwest Fire Insurance

But C. W. Floyd Coffin and Herman F. Ball have
agreed
to purchase, all shares not subscribed for by stockholders.

Fremont Uranium Co., Salt Lake City, Utah
Aug. 1 (letter of notification) 15,000,000 shares of

7:-, 7

Dallas, Texas.

unsecured bank loans and for

927

.

Georesearch, Inc. (12/28)
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,

Railway Supply Co. 1
(letter of notification) 20,000 shares of common
(no par) to be offered for subscription by stock¬
holders.
Price—$10 per share.
Proceeds—To reduce
Oct.

'/J;. '-

•

Franklin

filed

then

York.

Underwriter—Barrett Herrick & Co., Inc., New York.

Co.,

Phoenix, Ariz.

(1/5)

1,652,176 shares of common stock (par 100)
offered for subscription by stockholders of record

to be

Packaging International, Inc.

general corporate purposes.
Mass. Underwriter—None.

Farm & Home Loan & Discount

Public Service Corp.

General

Dec. 12 filed

50,000 shares of five selling stockholders. Price—$3 per
share. Proceeds—For working capital; for
exploitation
of "Totosave"
system; and for marketing of "TropicRay" infra-red space heater. Office — Pittsburgh, Pa.

Office—53 State St., Boston,

par

/

$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
Springs, Fla. Underwriter—None.

June 30 filed 300,000 shares of common stock
(par 100),
of which 250,000 shares of for account of
company and

Micro-Ledger Accounting Corp.
(letter of notification) 297,000 shares of com¬
mon stock (par 10 cents), to be offered for
subscription
by stockholders.
Price—$1 per share.
Proceeds—For

Price—At

debentures.

derwriter—None.
Fort Pitt

General Capital Corp.
3 (letter of notification)

Oct.

★ Ford Motor Co., Detroit, Mich.
Dec. 21 filed 800,000 shares of common stock
(par $5)
to be offered pursuant to the
company's Savings and
Stock Investment Program for Salaried
Employees. Un¬

Sept. 28

Electronic

common

None.

acquisition of Economy Service, Inc. Office—415 Ray¬
mond Blvd., Newark, N. J.
Underwriter—S. D. Fuller
& Co., New York.

Price—To

Office—Colorado Bldg., Denver, Colo. Underwriter
—•Philip Gordon & Co., Inc., New York.

(letter of notification)' 2,000 shares of class B„stock (par $25), to be offered for sub-,
scription by holders of class A common stock. Price—1.
$36.50 per share. Proceeds — For capital and surplus."
Office—4143 N 19th Ave., Phoenix, Ariz. Underwriter—

Co., Newark, N. J. (12/29)
Dec. 6 (letter of notification) 99,900 shares of common
stock
(par $1).
Price—$3 per share.
Proceeds—For
working capital and subsequently to defray cost of

mon

gas.

Co., Phoenix, Ariz.

2

voting

Federal Oil

Dec. 21 filed

Proceeds—For expenses incident to drilling for oil and

Frontier Assurance
Dec.

Farmers Union.

Oct. 25

(letter of notification) 1,500,000 shares of com¬
stock (par one cent).
Price—20 cents per share.

Utah. Underwriter — Moab Brokerage
Co., Western States Investment Co., Potter Investment
Co., Mid-America Securities, Inc. of Utah, and Cashin-;
Emery, Inc., all of Salt Lake City, Utah.
*
Salt Lake City,

and agents, and by officers, directors and employees
the Union, which is often referred to as National

it Ford Motor Co., Detroit, Mich.

East Basin Oil & Uranium Co.

,

writer—None.
ers

37

(2777)

—$1.60

per

share. Proceeds—For working

Underwriter

Some

None.

—

of

the

stock

capital, etc.
will

also be

public through Kenneth K. Pound, President;
and Law L. Lovelace, Secretary-Treasurer.
offered to

NEW
December 27

Cuba

ISSUE

(Tuesday)
Bonds

(Allen & Co.)

Industrial
(Standard

Plywood
Securities

Co.,

Corp.

Inc

Common

—

Weill, Blauner & Co.,

Price—$1,825,000, plus accrued interest of $29,632. Pro¬
certain working or leasehold inter¬
ests in oil and gas interests. Underwriter—None.

ceeds—To purchase

Atlas Plywood. Corp
Debentures
^ . /,V '
(Van Alstyne, Noel & Co.) $6,000,000

$2,000,000

and

Sept. 14 filed $2,000,000 of 5 %' sinking fund convertible
debentures due Sept. 1, 1965 to be sold to Brandel Trust.

January 12 (Thursday)

(Republic of)

Coastal States Oil & Gas Co

Inc.)

(Blair

&

Co.

Common

Incoiporated)

•

500,000 shares

(E. B.)

Finance Co., Inc

(R.

Stone

S.

Dickson

&

Co.,

$225,000

S.

Dickson

&

(Milton

Common

Inc.)

Co.,

Common

Silvray Lighting, Inc

(E. B.) Finance Co., Inc..
(R.

(Monday)

January 16

Preferred

Inc.)

D.

Blauner

&

Co.,

Georesearch

(Tuesday)

Pennsylvania Electric Co
Common

H.

Walker

(Bids

400,000 shares

Zapata Petroleum Corp.:

Pennsylvania

Common

&

Co.)

120,000

Electric
to

(Bids

'

29

(Thursday)

Fuller &

D.

Co.)

Puerto

Rican

Jai

(F.

H.

&

(Wednesday)

January 4
Maine

Common
Inc.)

W.

(Offering

$1,875,000

Co.,

Inc.)

Weld

Clark

Oil

&

$1,125,000

&

(Loewi

&

—For

$1,800,000

Nov. 3

:

Common

(White,"Weld Sc Co.) 240,000 shares

-

;

January

5

(Thursday)

to

stockholders—to

Webster

Securities

be

Magnavox Co.

Common

underwritten

Corp.)

by Stone
shares

1,652,176

____________

Southern

&

(Franklin

stockholders—to
Stanley

be

Co.)

&

January 9

.Preferred

shares

by

Morgan

>

>„•

(Bids

^ /

.

;.r jr.

Inc.)

to

January 10
(A.

Korvette

7*,.

(General

M.

(Tuesday)

(Aetna

Inc.)

&

Co.)

222,000

(Offering

v

..(Bids 11:30

a.m.

(Bids




..

Underwriter—

,v,

+ Highland Telephone Co.
12 (letter of notification)

2,500 shares of common

par) and 2,000 shares of 4V2% preferred
(par $100). Price—For common, $40 per share;
and for preferred, at par; Proceeds—To repay;debt and
for construction of plant.
Office—145 North Main. St.,
stock

(no

$10,000,000

&

Co.)

Common

be underwritten by
83,030 shares
>
"■

(Tuesday)

j

Smith,

4

%
i—Bonds

Co

to be invited)

February 29
Preferred
.

>

.

V,

Northern
|

.

States

(Wednesday)

(Bids

to

be

invited)

—..Common

*

|

Sept. 1 (letter of notification) $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.
Office—837 South Maine

St., Salt Lake City, Utah.
ton & Co., same city.
Hunt

Uranium

Corp.,

Underwriter—Edward L. Bur¬
Green

River, Utah

Aug. 22 (letter of notification) 1,200,000 shares of com¬
mon
stock.
Price—At par (25 cents per share). Pro¬
ceeds—For expenses

$10,000,000

Power Co._

Underwriter—None.

Acceptance Corp., Salt Lake City, Utah

derwriter

(Wednesday)
EST) $6,000,000

f

(Thursday)

stockholders—may

Texas Electric Service

$300,000

New Orleans Public Service Inc.J
,

to

Barney

1

11

Airport, Canton (Norwood P. O.), Mass.

Home

___Bonds

be invited)

i>:

«

January

(Wednesday)

February 28

Debentures
Corp.)

per share.
Proceeds—For administra¬
engineering expenses. Office — Metropolitan

Price—$5

and

Monroe, N. Y.

$1,000,00$

shares

Inc
Securities

--L _|Common

Investing Corp.)

Southern Indiana Gas & Electric Co

shares

Common

Rhoades

(Wednesday;)

February 23
Common

180,000

Inc

Loeb,

Homes,

Co.

&

$15,000,000

Dallas Power & Light Co

$400,000

Specialties, Inc

Becker

(E. J.),

(Carl

Techbuilt

G.

about

Colohoma Uranium, Inc

(Bids to

Danly Machine

$300,000

Common

be ;invitedl

February 15
Common

Otis,

Securities Co.)

.

Canton, Mass.
24,000 shares of common

(letter of notification)

None.

....Common

Co._r_—

February 1

/*.-

(Monday)

international Metals Corp
(Gearhart &

$25,000,000

Underwriter—None.

stock

undeiwritten

313,845

invited)

be

working capital.

Dec.

Outboard, Marine & Manufacturing Co.___Common
to

to

stock.

tive

Co.__—Debentures

Telephone

Mining & Milling Co.;_

Texas Utilities

(Reynolds & Co.) $6,000,000

(Offering

Bell

(Bids

General Public Service Corp..
(Offering

(Tuesday)

January 31
Northwestern

upon

Helio Aircraft Corp.,

-

.

issued

35,311 shares of common stock

preferred stock at the rate of one warrant for 1V2 com¬
mon
shares
(before adjustment) for each preferred
share.
Price—To be supplied by amendment.
Proceeds

by

Preferred

about

Co.)

Co.)

(Monday)

Refining Co

Co., Watervilfe, Me.

(C. F.)

(par $1) to
exercise of outstanding common stock
purchase warrants which were issued in 1950 and 1951
to the purchasers of 24,000 shares of 5.8% cumulative
be

Common
be underwritten
100,000 shares

stock for each 25 shares of Water¬

common

Underwriter—None.

15 filed

Dec.

shares

stockholders—may

to

January 23
Common

McLean Industries, Inc

White,

and

Beane;

Blyth & Co., Inc.)

(Wednesday)

Brooks

&

Fenner

10,200,000

Fidelity Life Insurance Co
(P.

Pierce,

Seattle-First National Bank

stock.

^Hathaway

Class A Common

(Tuesday)

Co.,

Hammermill

$8,000,000

(Blyth & Co., Inc.; The First Boston Corp.; Goldman, Sachs
&
Co.;
Kuhn,
Loeb
&
Co.;
Lehman
Brothers: Merrill

$299,700

Alai, Inc

Crerie

Preferred

Co
invited)

be

Ford Motor Co

Lynch,

January 3

$20,700,000

vliet

Common

(S.

Bonds

;

invited)

be

to

January 13
December

Ogden, Utah

it Hammermill Paper Co., Erie, Pa.
Dec. 20 filed 166,400 shares of common stock (par $2.50)
to be offered in exchange for shares of capital s^ock
of Watervliet Paper Co. in the ratio of 26 shares of

shares

Federal Oil Co

Uranium Corp.,

Corp., Ogden, Utah.

(Wednesday)

Corp..

(Bear. Stearns & Co. and Keith, Reed & Co. Inc.)

(G

shares

225,000

$75,000

January 17
December 28

Inc.)

Half Moon

Aug. 10 (letter of notification) 8,000,000 shares of capital
stock.
Price—At par (two cents per share).
Proceeds
—For mining expenses. Office—E-17 Army Way, Ogdea,
Utah.
Underwriter—United Intermountain Brokerage

.

$300,000

Stone

Leaseholds, Inc., Houston, Texas

Gulf Coast

CALENDAR

—

Elmer

Salt Lake City,

incident to mining activities. Un¬
Aagaard, 323 Newhouse Bldg*,

K.

Utah.

.

Continued

on

page

38

38

The Commercial and Financial Chronicle

(2778)

Continued

jrom

page

(E. J.), Inc., White Plains, N. Y.

^ Korvette

37

McLean

(1/10-13)

Hydro-Loc, Inc., Seattle, Wash.
Oct. 25 (letter of notification) 1,674 shares of capital
stock. Price—At par
($100 per share). Proceeds—For
v/orking capital, etc. Office—603 Central Bldg., Seattle
4. Wash. Underwriter—Pacific Brokerage Co. of Seattle,

Dec.

filed

16

Price—To

if Land

if Ideal-Aerosmith, Inc., Hawthorne, Calif.
Dec. 16 (letter of notification) 150,000 shares of capital
(par

$1).

Price

$2

share.

Proceeds

222,000 shares of

common

stock

(par $1).

be

supplied by amendment. Proceeds—For
general corporate purposes. Business—To operate a chain
of retail stores in New York City and suburbs. Under¬
writer—Carl M. Loeb, Rhoades & Co., New York.

Wash.

stock

Dec.

Dec.

and

General

Finance

Corp.

i

13

(letter of notification) 30,000 shares of Class B
stock. Price—At par ($10 per share). Proceeds
purchase and development of land and future con¬
tingencies. Office—Fort Lauderdale, Fla. Underwriter—
common

For

—For

equipment, machinery, inventory, etc. Office—12909 So.
Ave., Hawthorne, Calif. Underwriter—Samuel B.
Franklin & Co., Los Angeles, Calif.

None.

—

per

—

Cerise

per

unit.

be invested in the mortgage investment
Office—1012 H St., N. W., Washington, D. C.
Underwriter—Federal Investment Co., same city.

portfolio.

*,

Indian

Monument

Uranium

Mining

Proceeds

:

For

•

Industrial Plywood

Co., Inc.

(letter of notification) 100,000 shares of common stock (par 25
cents) (with stock purchase warrants
attached entitling purchasers of each five shares to

York, N. Y.

Insulated

Lithium

com¬

Broadway,

Proceeds—For general corporate
purposes.
&

* Insurance Co. of the South
Dec.

13

(letter of

notification)

of

class A
stock (par $10) and
2,490 shares of class B com¬
stock (par $10). Price—Class

to

A, $35 per share; and
$10 per share. Proceeds—For
working capital,
Office—564 Osceola
Street, Jacksonville, Fla. Un¬

(par $1).

International Metals Corp.
(1/9-13)
4 filed
400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—To finance ex¬
ploration and development of
mining properties of Recursos
Mineros Mexicanos, S.
A., Mexican subsidiary,

International

Houston, Tex.

•

rate

N.

—

Y.

"Isras"

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.

★ Juniper Oil & Mining
Corp., Denver, Colo.
Dec. 7 (letter of
notification) 300,000 shares of common
stock (par 10
cents). Price—$1 per share. Proceeds—
For mining and
development expenses.
Office—1019
Mile High Center,
Denver, Colo. Underwriter—None.
Jurassic

Minerals, Inc., Cortez, Colo.
Aug. 26 (letter of notification)
2,855,000 shares
assessable common stock
(par one cent).

per

share.

activities.
Colo.

Office

—

Underwriter

Price—10 centi
expenses incident to
mininf
326 West Montezuma
St., Cortex
Bay Securities Corp., New York

—

7

—

filed

(1/3)

120,000

stock

(par

•

Maine

Nov.

10

$50).

of

cumulative

Price—To

Fidelity Life Insurance Co.

filed

Price—$25
purposes.

convertible

be

(1/4)

45,000

shares of capital stock (par $10).
share. Proceeds—For general corporate
Office —Portland, Me.
Underwriter—P. V/.
per

Brooks & Co., Inc., New York.

(letter of
Price—At

Fresno, Calif.

notification)
par

($10

None.

20,000

per

George C. Underdown
pre-incorporation managers.

of capital
Proceeds—For

—

and Lorenzo S.

..

Mansfield, Ohio

nnn

program.

Office—35 Park Avenue East,

Underwriter—None.

at*

Mansfield, Ohio.

Manufacturers Cutter Corp.
18 (letter of
notification) 300,000 shares of class A
stock. Price—At par ($1 per
share). Proceeds—
To repay loans, and for new
equipment and working
capital. Business—Cutting tools. Office—275 Jefferson
Oct.

common

Higley

are

Marl-Gro, Inc., San Francisco, Calif.
(letter of notification) 172,500 shares of

For
a

(par

mining

soil

cent$).

expenses

common

share. Proceeds

lative preferred

Co.,

stock.

Price

At par

Price—$1
and

per

expenses

share.
incident

Proceeds—
to

($50

cumu¬

share).
Proceeds—For processing plant, heavy
equipment, and
working capital. Office—2508 Auburn Ave.,
Cincinnati,
Ohio. Underwriter
W. E. Hutton. & Co.,
Cincinnati,
—

per

—

Ohio.

-^Monitor

Exploration Co., Denver, Colo.
(letter of notification) 300,000 shares of common
stock (par five cents).
Price—$1 per share. Proceeds—
For mining expenses.
Office—623 First National Bank
Dec. 9

Building, Denver 2, Colo.
Underwriter
rities Corp., Jersey
City, N. J.

—

Globe

Secu¬

• Montana

Mining & Milling Co., Inc.
(letter of notification) 300,003 shares of capital
par 10 cents.
Price—$1 per share. Proceeds—Fcr
expenses incident to mining.
Office—230 Fifth Avenue,,
13

stock

New

York

City.' Underwriter—None.

Offering

offered by officers and directors of
company.
Mt.

to

be

■//_

Vernon

Mming & Development Co.
(letter of notification), 303,000 shares of com¬
Price—At par ($1 per share).
Proceeds—
For
mining expenses.
Office—422
Continental
Bank
Bldg., Salt Lake City, Utah. Underwriter
Ackerson16

stock.

mon

—

Hackett

Investment

Co.,

Continental

701

Bank

Bldg.,

city.

same

National Old Line Insurance Co.
15 filed 50,000 shares of class

(par

$2)

(pdi*

$>z;.

ceeds
Ark.

—

and

50,000

shares

Price—To
To

be

of

supplied

selling stockholders.

Underwriter—Equitable

A

by

common

stock

B

class

common

stock

amendment.

Office

Pro¬

Little Rock,

—

Securities

ville,-Tenn., and New York, N.
pected for two or three weeks.

Corp.. Nash¬
Offering—Not ex¬

Y.

Natural Power Corp. of
America, Moab, Utah
7 (letter of notification) 300,000 shares of
assessable common stock (par one

Sept.

cent).

Proceeds—For

tivities.
Okla.

non¬

Price—$1

incident

expenses

per

to

mining ac¬
Underwriter—Western Bond & Share Co., Tulsa,
\

Nevada

Mercury Corp., Winnemucca, Nev.
Sept.T6 (letter of notification) 1,500,000 shares of
stock

mon

(par

Proceeds—For

one

cent).

expenses

Office—Professional

Price—20

incident

Building,

to

cents.per

mining

Winnemucca,

com¬

share.

activities.

Nev.

Un¬

derwriter—Shelley, Roberts & Co.. Denver, Colo.
Orleans

Public Service Inc.
(1/11)
I
60,000 shares of cumulative preferred kock
(par $100). Proceeds—For construction program. Under*
Dec.
_

2 filed

*j

m_

writer

i

■

To

be

determined

i

»

i

i

rfi:

Lf

j

by competitive bidding.
Langley
&
Co.;
Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane; White,
Weld &
Co.; Kidder, Peabody- & Co. and Stone &
Webster
Securities Corp.
(jointly); The First Boston
Corp.; Equitable Securities Corp. and Union Securities
Corp.; (jointly); Blair & Co. Incorporated.
Bids—Ex¬
—

Probable

bidders:

W.

C.

pected to be received up to 11:30

bonds

a.m.

(EST)

on

Jan. 11.

due

March

1, 1966.

Price—At

par

(in denomina¬

St.,

New

selling

York, N. Y.

Underwriter—None.

*

Mascot Mines, Inc.
Aug. 1 (letter of notification) 300,000 shares of common
stock
(par 35 cents).
Price — 62y2 cents per share.

Proceeds

—

For

expenses

incident

North Shore Gas

to

mining activities.

Underwriter—Standard Securities Corp., Spokane, Wash.

Co., Salem, Mass.
(letter of notification) 1,289 shares of common
stock (par $10) being offered for subscription by minor¬
ity stockholders at rate of one new share for each five

Nov.
r

.

per

ff

Silica

tions of $250 each). Proceeds—To modernize club rooms
and for working capital.
Office — 123 West 43rd

common

Office—681 Market St., San Fran¬
Underwriter—Globe Securities Corp., New
•

Papadakos, the selling stockholder. Of¬
fice—129 Pierrepont
St., Brooklyn, N. Y. Underwriter—
20th Century Pioneer Securities
Co., New York.

Oct. 3

Five

—

incident to /

conditioner.

York.

60,000 shares of

*^ar ^ cents)» Price—40 cents

10

Price

expenses

if New York University Club Inc.
Dec. 15 (letter of notification) $250,000 of 5% debenture

city/

Oct. 6
stock

For

Cincinnati, Ohio
(letter of notification) 3,000 shares of 8%

New

6,000 shares of 5% prePrice—At par ($50 per share). Proceeds
TO
11PP
-To reduce clinrt iar*nrt inrloKfnrlnftpci nn/I *£r*v»
o4-v»i in+i
short term indebtedness and for construction
stock.

cisco, Calif.

Electronics Co., Inc.
Oct. 27 (letter of
notification)




Mansfield Telephone Co.,
Nov. 4 (letter of
notification)

shares

share).

Kendon

—To Nicholas J.

mining expenses. Office—374 Denver Club
Bldg., Den¬
ver, Colo. Underwriters—General Investing
Corp., New
York;-and Investment Service Co., Denver, Colo.

-

cent).

one

—

.

Mohawk

share.

Manhattan 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

ferred

(par

Proceeds

Nov.

shares

—

same

inventory, ^establishment of outlets,
working capita1, etc.
Office
354 W.
Sierra, Fresno, Calif. Underwriter

rn

Underwriter

St., Newark, N. J. Underwriter—Paul C. Ferguson &
Co.,

+ Kemir Corp. of America,

Dec.

of non¬

Proceeds—For

New York.

stock.

Ga.

—

(par $25)

share. Proceeds—For general
corpo¬
Underwriter
Israel Securities Corp.,

Atlanta,

supplied by
amendment.
Proceeds
For larger
inventories and
additional working capital. Underwriter
Reynolds &
Co., New York.

Development Corp,
stock

Building,

capital stock
share.

per

ver, Colo.

Dec.

per

purposes.

New York,

9

preferred

Plastic

common

Bank

Magnavox Co.

Dec.

Under¬

Otis, Inc., New York.

200,000 shares of

cents

•

—

filed

one

-f ■
f,';,T
"Mobile Uranium & Oil
Co., Salt Lake City, Utah'
Aug. 22 (letter of notification) 5,500,000 shares of non- /

None.

Industries Corp.
(letter of 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,
N. Y. Underwriter—Kamen &
Co., New York.
Israel Industrial & Mineral
Oct. 5

Co.

City, Utah.

National

Oct. 12

Price—$27.50

(par

None.

Nov.

•

writer— Gearhart &

Oil

if Loxcreen Co., Inc., Atlanta, Ga.
Dec. 13 (letter of notification) 10,000 shares of common
stock (no par). Price—$10
per share. Proceeds—To pur¬
chase machinery and raw materials.
Office—1516 First

Oct.

—

&

notification)

Lake

pf
ties Corp., 76 Beaver
St., New York, N. Y.

Office

Pro¬

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

Proceeds—For investment. Businew
in foreign securities of the free
world out¬
the United States. Underwriter—I. I. I. Securi¬

discharge note.

com¬

—

Price—At market.

and to

Co.

mining expenses. Underwriter—None. Sales
made through officers and directors of
company.

be

—To invest

side

Uranium

Oct.

derwriter—None.

International Investors
Inc., New York
Aug. 23 filed 200,000 shares of
capital stock

Mac

Lost Canyon Uranium
6 (letter of

class B,
etc.

Developments, Inc., Cleveland, Ohio

filed

ceeds—For

common
mon

Price—$8.75 per

Dec.

(Fla.)
shares

cock'

if Little Queen Mines, Inc., Atlanta, Idaho
16 (letter of notification)
1,500,000 shares of
mon
stock.
Price—At par (one cent per share).

Co., Ltd., New York.
1,466

17

Little

100,000 shares of 6% cumulative convert¬
(par $5). Price—To be supplied by

Underwriter—Alexander Watt

3,000,000 shares of com-'
cent). Price—$10 per share. Pro¬
ceeds— For expenses incident to
mining.
Office — 740
East Main Street, Grand Junction, Colo. Underwriter—
stock

mon:

Sept. 12 (letter of notification) 3,000,000 shares of capi¬
tal stock. Price—At
par (10 cents per share). Proceeds
—For mining expenses. Office—440 West 3rd
North, Sait
Lake City, Utah.
Underwriter—Skyline Securities, Inc.,
Denver, Colo.

-

ible preferred stock

amendment.

Minerals, Inc., Grand Junction, Colo.

D^f 14 (letter of notification)

600,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For exploration
and development costs, etc.
Underwriter—George Searight, New York City.

Circuits, Inc., Belleville, N. i.

Nov. 10 filed

..

mining activities. Office—605 Judge Bldg., Salt Lake
City, Utah. Underwriter—Skyline Securities, Inc., Den¬

Oct.

share

Underwriter—G. F. Rothschild &
Co.,

address.

f'f

assessable

—

same

'ff

None.

laminated plastics. Office—,168 Blanchard
St.,
Newark, N. J. Underwriters
Standard Securities Corp.
and Weill, Blauner &
Co., Inc., both of New York.

New

Woak

^

unsold shares will be offered to public.

wood and

per

&

share to stockholders; $10 per share to public. Proceeds
—For expansion and working capital.
Underwriter—

ply¬

Office—42

Underwriter

Sept. 26 filed 100,000 shares of comrtti

additional share of stock at $5 per
share). Price—$3
share. Proceeds—To liquidate loans and for
general
corporate purposes. Business—Purchases and sells

expenses.

-

subsidiary. Underwriter—White, Weld & Co., New York.
•
Metro, Inc., Baltimore, Md.
Nov. 30 (letter of
notification) 5,000 shares of common'
stock (par $1). Price—$10 per share. Proceeds—To Karl*
R. Kahn, President of the
company.
Office — 808 E.

.

cents) to be offered for subscription by present stock¬
holders of record July 21, 1955 on the basis of one new
share for each four shares held; rights to expire 45 days
from the commencement of the
offering, after which

c

per

mining

common
stock (par one
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 fee' undertaken
by Pan-Atlantic Steamship Corp., a

,

Life Underwriters Insurance Co

one

Proceeds—For

purposes.

Co., New York.

(13/27-30)

30

if Inland Mineral Resources Corp., N. Y.
Dec. 12 (letter of
notification) 600,000 shares of
mon iitock
(par one cent).
Price—50 cents

...

corporate

expenses

Office—205

Nov.

(1/4)
of

y

incident to mining activities.
Byington Building, Reno, Nev. Underwriter
—Richard L. Dineley, same address.
—

shares

be

>

Corp.

(letter of notification) 3,000,000 shares of com(par one cent). Price—10 cents per share.

stock

mon

240,000

Price—To

St., Baltimore, Md. Underwriter—Auchincloss,
Redpath, Washington, D. C. No general offer
f
f
com¬ If planned. mon stock
(par two cents).
Price—10 cents per share.
/ ' Mexico Refractories
Co., Mexico, Mo.
Proceeds—For expenses incident to miniffgfactivities.
Oct. 19 filed 57,776 shares of common stock
(par $5)
Office—c/o Warren E. Morgan, President, 1705 East First
;
being offered to stockholders of National Refractories
South, Salt Lake City, Utah. Underwriter—Empire Se¬
Co.j a subsidiary, in exchange for 57,776 shares of capital.
curities Corp., Las Vegas, Nev.
j* ?tocfc-'Xpar-'$5)-bpf National on a share-for-share basis;
if Lear, Inc., Santa Monica, Cali
to - remain open for 60
days from Nov. 17, 1955.
Dec. 21 filed $3,000,000 of subordi
jflejis conditioned upon Mexico
owning at least 80%
Dec. 1, 1970 (convertible through Nj
;©f. outstanding National stock
upon
consummation of
—To be supplied by amendment. Pr
hfefgf ffexchangef
'"f/f

Proceeds—To

Sept. 6

Thursday, December 22,1955

.

Industries, Inc.

filed

cent).

Parker

Valley Uranium & Oil Corp.,
Aug. 15 (letter of notification) 3,000,000 shares of

Dec. 7 (letter of notification) $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

Price—$125

.

Fayette

Lander

Incorporated Mortgage Investors

debenture and 25 shares of stock.

9

.

10

shares held

Price—$14

as

per

of

Nov.

share.

28; rights to expire

on

Dec. 19.

Proceeds—To repay advances from

,New England Electric System, the parent.
—None..,

Underwriter

Volume 182

Number 5492

.

.

The Commercial and Financial Chronicle

.

(2779)

it North Star Oil & Uranium Corp.
12 (letter of notification) 15,000 shares of

•

Dec.

stock

(par 5 cents).

share).

per

—295

Price—At market

75

(about

selling stockholders. Office
Ave., New York 17, N. Y. Underwriter

Corp., Dallas, Texas
4,000,000 shares of common stock (par 25
Price—30 cents per share. Proceeds—For pur¬

14 filed

chase of investments and property interests in both oil
and gas and nuclear situations.
Underwriter—None; but
offering will be made through licensed dealers. Jack
Frost of Dallas is Chairman of the Board and J. Cullen

Looney of Edinburg, Texas, is President.
Oak Mineral

&

Oil

Corp., Farmington, N. M.

Nov. 8 (letter of notification)
2,000,000 shares of
stock

common

(par five cents).

Price—15 cents per share. Pro¬
ceeds—For exploration and development and other
gen¬
eral corporate purposes.

Co., New

Underwriter—Philip Gordon &

York.

01 ive-Myei*5 Spalti
Mfg. Co., Dallas, Texas
Oct. 24 filed 100,000 shares of 55-cent
cumulative

vertible

preferred

stock

(par $6.25)

to

be

by common stockholders on basis of one
preferred stock for each 2.597 shares of com¬

stock

mon

at

3:30

held.

The

p.m.

date

fective

(CST)
of

subscription warrants will expire
the 14th day following the ef¬

on

the

registration

statement.

Price—To

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
South 5th St., Las Vegas, Nev.
Underwriter—Hennon &
Roberts, Las Vegas, Nev.
./
★ Outboard, Marine & Manufacturing Co. (1/5)
Dec. 15 filed 313,845 shares of common stock
(par 83J/3
cents), of which 213,845 shares are to be offered for
subscription by common stockholders of record Jan. 4,

1956 on the basis of one new share for each
10 shares
held (rights to expire on Jan.
23); the remaining 100,000
shares to be offered to the public for the account
of
two selling stockholders. Priced— To be

supplied by
amendment. Proceeds—For capital
expenditures. Under¬
writer—Morgan Stanley & Co., New York.
Pacific

International

Metals

&

Uranium,

<

W: Real

lncE

Aug. 12 (letter of notification) 12,000,000 shares of com¬
mon
stock.
Price—At par (one cent per
share). -Pro¬
ceeds—For expenses incident to mining activities. Office
—419 Judge Bldg., Salt Lake
City, Utah. Underwriter—
Guss Securities Co., Salt Lake
City, Utah.

of

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
States Investment Co., Tulsa, Okla.
17

—

—

—

Penn

Precision Products, Inc.,

Reading, Pa.
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

(letter of

of

Pennsylvania at $14

Durchase of mill.

;

Pa.

Office

share.

Proceeds—For

Crescent

Ave., Reading,

per

501

—

Underwriter—None.

com¬

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.

:it Petroleum
Dec.

Utilities Corp., Albany, Ga.
(letter of notification) 2,000 shares of

12

stock.

Price—At

Office

Allen

—

($100

par

working capital

and

other

Building,

per

share).

general

Albany,

Ga.

purposes.

Underwriter

—

;•/

29 filed

115,000 shares of common stock (par $1).
share. Proceeds—To pay current accounts

Price—$4 per
'and notes payable; for research and
development; and
general
"American

corporate purposes.
Securities Co., Tulsa,

share

of

each.

Underwriter

Price—$5

per

unit.

payment of note and working capital.
zens National Bank
Bldg.,

North

—

Proceeds—For

Office—420 Citi¬

Independence, Kan.

Under¬

writer—Dewitt Investment Co.,
Wilmington, Del.

i^r Preston
.Dec.

14

Fund, Inc., Boston, Mass.
20,000 additional shares of capital stock.

market.

of

preferred

and

share

one

for general corporate
purposes.
& Bayley Investment Co.

of

common

Underwriter—Wil¬

procurement agreement to be offered
bers of the general public who are
and who

are

Price—$2

pany.

per

porate purposes.
Leo

unit.

to

certain

mem¬

acceptable applicants
policyholders in the com¬

to become active

Proceeds—For

general

cor¬

Underwriter—None; to be offered by

Rich, Robert Kissel and Sidney M. Gilberg,

as

Trus¬

tees.

an

3, 1956.

Underwriter

—None.

cent).

one

Price—50

cents

working capital and mining
Utah.

Underwriter

share.

per

expenses.

The Matthew

—

Moab,
Corp., Washington,
—

C.

• Riddle Airlines, Inc., Miami, Fla.
20 filed 967,500 shares of common stock
(par 10
cents) to be offered for subscription by stockholders at
(with

of

one

new

share

for

each

four

shares

held

oversubscription privilege). Price—To be sup¬
by amendment.
Proceeds—To repay bank loan
and for working capital.
Underwriter—Eisele & King,
Libaire, Stout & Co., New York.
: /
an

plied

Rogers Corp., Rogers, Conn.

stock to be offered to stockholders on a basis of
one
share for each four shares held.
Price—($29 per share).
Proceeds—To replenish working capital due to losses
sustained in recent flood. Underwriter—None
.

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 offering, at
50 cents per share, of
200,000 shares for subscription by
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.
San Juan Uranium

Exploration, Inc.
(letter of notification) 925,000 shares of non¬
common stock (par one
cent). Price—12 cents
share. Proceeds—For expenses incident to mining
19

assessable

activities.

Office

718

Kittredge Bldg;, Denver, Colo.
Underwriter—Shelley-Roberts & Co., Denver, Colo.
—

Mining & Development Corp.
Sept 9 (letter of notification) 3,000,000 shares of capital
stock

(par

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.
one

—

Sans

Souci

Hotel, Inc., Las Vegas, Nev.

Nov. 9 filed 1,428,000 shares of common stock
(of which
1,097,529 shares are to be offered for subscription by

stockholders at rate of 1% shares for each share held of
-record

Dec.

1,

30,471 shares
seven

1955

are

(with rights to expire on Dec. 31);
to be issued in payment for claims of

individuals

300,000 shares
of

and

company).

—For construction of

working capital.

aggregating $30,471; and
by George E. MitzelJ>
Price—$1 per share. Proceeds
offered

new
facilities; to pay off notes; and
Underwriter—None.
"
•„

' I '■

•

Champaign, III.

*

stock (par $4).
working capital,
etc.
Underwriter—Professional Casualty Agency
Co.,
Champaign, 111. John Alan Appleman of Urbana, 111 Ms

•Price—810

share.

per

common

Proceeds—For

President of the company.
Prudential Loan

'common

preferred

stock

stock

Price-^$6.75
purposes.

to

Corp., Washington,

per

be

and

offered
one-half

unit.

Underwriter

in

units

share

Proceeds—For
—

Sayre & Fisher Brick Co., Sayreville, N. J.
Sept. 30 filed 325,000 shares of capital stock (par $1).
Price—To be supplied by amendment. Proceeds — For
prepayment of outstanding 5Vz% sinking fund bonds due

1970; balance for general corporate purposes, including
additions and improvements and working capital. Under¬
—
Barrett Herrick & Co., Inc., New York City.

writer

Offering—Expected

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
of

of

one

share, of

common-stock.

general

corporate

Straus, Blosser & McDowell,

Chicago, 111.




"

—Ackerson-Hackett

Investment

Utah.

Science
Nov.
stock

Press

soon.

of

New Jersey, Inc.
(letter of notification) 15,620 shares of common
(no par).
Price—$5 per share.
Proceeds—For

10

building, equipment, working capital, etc.

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

Co.,

Salt

Lake

City,

,//v

it Silver Creek Precision Corp.
12 (letter of notification) 13,333 shares of

Dec.

stock

common

(par 40

cents). Price—$1 per share. Proceeds—>
selling stockholder. Underwriter
Weill, Blauner

To

—

Co., Inc., New York.

it Silvray Lighting, Inc.

(1/16)
225,000 shares of common stock (par 25
cents), of which 75,000 shares are to be for the account

Dec.

16

filed

of

the company and 150,000 shares for the account of
certain selling stockholders. Price—To be $3 per share.
Proceeds
To be used for expansion and working
—

capital.

Underwriter

Milton D. Blauner & Co., Inc.,

—

New York.

14

stock

I

(letter of notification) 24,000 shares of common
Price—$12.50 per share. Proceeds—To

(par $5).

short-term bank loans. Office—630 East BroughStreet, Savannah, Ga. Underwriters—Johnson, Lane,
Space & Co., Savannah, Ga.; Grimm & Co., New York
City; The Robinson-Humphrey Co., Inc.; Courts & Co.;
J. H. Hilsman & Co., Inc.; Wyatt, Neal &
Waggoner, and
repay

ton

New

Evans & Co. all of Atlanta, Ga.;
Varnedoe,
Co., Inc., Savannah, Ga.; Woolfolk & Shober,
Orleans, La.; French & Crawford, Atlanta, Ga.

it Southern Michigan Cold Storage Co.
12
(letter of notification) 802 shares of

Dec.

common

Price —At par ($100 per share). Proceeds — For
of building a freezing unit.
Office—Pipe¬

construction
stone
•

Road, Benton Harbor, Mich.

Underwriter—None.

Southern

Mining & Milling Co. (1/31)
Sept. 14 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents). Price—$1
per share. Proceeds
—For expenses incident to mining activities.
Offices—
Healey Building, Atlanta Ga., and 4116 No. 15th Avenue,
Phoenix, Ariz. Underwriter — Franklin Securities Co.,
Atlanta, Ga.
■■■'.; •,„ '
Spurr Mining Corp.
^
Nov. 9 (letter of notification) 300,000 shares of common
stock.
Price—$1 per share. Proceeds—For mining ex¬
penses.
Underwriter—Cavalier Securities Co., Washing¬
ton, D. C.
.

•

Stone

(E. B.) Finance Co., Inc. (12/27-30)
(letter of notification) 9,000 shares of 6% cumu¬

Dec. 8

lative

preferred

stock

(par

$25)

and 6,000 shares of
Price—For preferred,
par; and for common, $12.50 per share.
Proceeds—

class A
at

From

common

sale

of

stock

(par $5).

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.

Charlotte, N.

Underwriter—R.

C.

S.

Dickson

&

Co., Inc.,

,

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
Nov. 10

of

common

Proceeds—
Astor

Sts.,

& Co., Inc.,

Philadelphia, Pa.
Sulphur Exploration Co., Houston, Texas
21
filed 600,000 shares of 6%
convertible

Nov.

cumulative preferred stock to
tion by common stockholders
ferred

share

for

each

be
on

common

offered for
the

share

basis

of

held.

non-

subscrip¬
one

pre¬

Price—At

share). Proceeds-^-For construction and op¬
eration of sulphur extraction plant.
Underwriter—To
be named by amendment.
L. D. Sherman & Co., New
York, handled common stock financing in August, 1954.
par

($2

per

Summit Springs Uranium

Corp., Rapid City, S. D,

Oct. 3 (letter of notification) 1,200,000 shares of common
stock (par 10 cents). Price—25 cents per share. Proceed!
•<—For expenses incident

to mining operations. Office—
Harney Hotel, Rapid City, S. D. Underwriter—Morrii
Brickley, same address.

firms

to be

are

a

(

Oct. 3 (letter of notification) a minimum of
9,883 shares
and a maximum of 7,453 shares of class B
common

San

Corp.,

Shumway's Broken Arrow Uranium, Inc.
(letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For mining expenses. Office—Moab, Utah. Underwriter

stock.

rate

Securities

Nov. 7

Proceeds—For

Office

Proceeds—For investment.

Professional Casualty Co.,
Nov. 25 filed 250,000 shares of

Underwriter—None, but Sheraton
subsidiary, will handle stock sales.

Chisholm &

(par

Dec.

for

25 shares of stock then held and (b) 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.

Clement A.

Reynolds Mining & Development Corp.
22 filed 1,500,000 shares of common stock

Nov.

per

Corp. of America

$15,000,000 of 6V2% cumulative income sub¬

debentures

due Nov. 1, 1980 to be offered
initially by the company (a) to its stockholders on the
basis of $100 principal amount of debentures for each

Dec.

estimated 2,000 shares
of common stock (par 50
cents). Price — At market
(about $9 per share).
Proceds—To stockholders en¬
titled to receive fractional shares in connection with
5% stock dividends payable Jan.

the

ordinated

it South Atlantic Gas Co.

it Republic Pictures Corp.
(letter of notification)

Dec. 13

D.

Oct. 31 filed

&

Republic Benefit Insurance Co., Tucson, Ariz. '
Sept. 30 filed 150,000 units in a dividend trust and stock

President

Moss

filed

Price—At

shares

shares of 7%
(par $1) and 135,000 shares
cents) to be offered in units

it Reno Hacienda, Inc., Inglewood, Calif.
Dec. 19 filed 4,000,000 shares of common
stock. Price—
At par ($1 per share). Proceeds—To
purchase real prop¬
erty, for construction of buildings and other facilities

Okla.

Pittman Drilling & Oil
Co., Independence, Kan.
Sept. 6 (letter of notification) 60,000 shares of 6% nonrcumulative preferred stock (par
$5) and 60,000 shares
of common stock (par 10 cents) to be offered in
units of

Jone

Clearing House, Inc.
notification) 270,000

(letter of

Sandia

Pipelife Corp., Tulsa, Okla.
Nov.

two

Aug.
common*

Proceeds—Fcr

corporate

None.
-

Underwriter—F. H. Cre-

stockholders of record April 30,

Penn-Utah Uranium, Inc.,
Reno, Nev.
Aug. 4 (letter of notification) 2,000,000 shares of
mon

etc.

stock.
Price—$2.05 per unit.
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.

Paria

Oct.

Estate

Sept,' 14

cumulative preferred stock
of common stock (par five

son

for

(par one
purchase

Business—Playing of jai alai, with pari-mutuel betting.
Office—San Juan, Puerto Rico.
& Co., Inc., New York.

con¬

subscription
share of

Sheraton
stock

rie

and

offered

common

Price—$1.50 per share. Proceeds—To
property and for construction of sports stadium,

Nu-Petro

cents).

(1/3-4)

cent).

cents

—None.

Nov.

Alai, Inc.

Nov. 3 filed 1,250,000 shares of

Proceeds—To

Madison

Puerto Rican Jai

common

39

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.
Box

Underwriter—Securities, Inc., P. O.

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).
Proceeda
—For expenses incident to mining activities. Office—
Moab, Utah. Underwriter—Honnold & Co., Inc., Salt
Lake City, Utah.
Sweetwater

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. *
Continued on vaae 40

The Commercial and Financial Chronicle

(2780)

£0

Continued from page

39
Wash.

Target Uranium Co., Spokane,

Aug. 12 (letter of notification) 1,000,000 shares of non¬
assessable stock (par five cents).
Price—20 cents per
ihare.
Proceeds —For mining expenses.
Office —729

Spokane, Wash.
Underwriter — Percy
Dale Lanphere, Emnire State Bldg., Spokane, Wash.
Paulsen

Bldg.,

if Techbuilt Homes, Inc., Cambridge, Mass. (1/10)
Dec. 9 (letter of notification) $300,000 of 6% convertible
debentures due Dec. 15, 1965.
Price—100% of principal
amount.
Proceeds—For working capital and other gen¬
eral

corporate

Mass.

bridge,

purposes.
Office—55 Brattle St., Cam¬
Underwriter — Aetna Securities Corp.,

New York.

Inc., Billings, Mont.
Dec. 12 filed 400,000 shares of common stock (par 100).
Price—$1 per share.
Proceeds—For drilling test costs,
payment of notes and accounts payable and loans and
for general working capital.
Underwriter — Carroll,
Kirchner & Jaquith, Inc., Denver, Colo.
Tenison

Drilling Co.,

American

Texas

Oil

Corp.

notification) 600,000 shares of com¬
mon stock
(par 10 cents). Price — 50 cents per share.
Proceeds—For drilling expenses, etc.
Office—216 Cen¬
Nov.

3

(letter

tral Bldg.,

of

Midland, Tex. Underwriter—Kramer, Wood*
Tex.

& Co., Inc., Houston,

Eastern Transmission

Texas

Nov.

filed

Corp.

shares of cumulative preferred
(par $100). Price—To be supplied by amendment.
Proceeds—Toward redemption of presently outstanding
30

200,000

stock

Universal Service Corp., Inc., Houston, Texas
July 8 filed 500,000 shares of common stock (par two
mills). Price—$2.50 per share.
Proceeds—For equip¬
ment, mining costs, oil and gas development, and other
corporate purposes.
Underwriter — None.
Offering —

if Wytex Oil Corp.
15 (letter of notification) 8,700 shares of class A
stock (par $1) to be issued upon exercise of warrants
(effective Dec. 31, 1955) attached to 5% debentures due
1964 exercisable until Dec. 31, 1959.
Price — $30 per
share.

★ Uranium Research & Development Co.
Dec. 7 (letter of notification)
1,200,000 shares of com¬
mon
stock (par 10 cents).
Price — 25 cents per share.

and for advances to Wytex Services

Proceeds—For mining operations.
Office—209 Denham
Building, Denver, Colo. Underwriter—None.

Wyton Oil & Gas Co., Newcastle, Wyo.
Sept. 29 filed 254,000 shares of common stock (par $1).
Price—At the market. Proceeds—To August Buschmann,

Office—100

if Utacal Uranium Corp., Los Angeles, Calif.
16 (letter of notification) 500,000 shares of class A
stock. Price—10 cents per share. Proceeds—For
mining
expenses.
Office—722 South Western Ave., Los Angeles
5,

Calif.

Raven

Underwriter —Roderick

L.

Reed,

Sr.,

of

class
of

(par $1) and 45,000 shares of
(par $1) to be offered in units
share of each class of stock. Price—$1 per unit.
stock

preferred
A

one

stock

common

Proceeds—For

capital.

working

Blvd., Los Angeles, Calif.
Traveler

Office—5225

Wilshire

Underwriter—None.

Publishing Co.,

Inc., Philadelphia, Pa.
Sept. 29 (letter of notification) $247,000 of 5Vz% con¬
vertible debentures, series A, due Sept. 1, 1965 and 24,700 shares of common stock (par 10 cents), to be offered
In units consisting of $1,000
of debentures and 100
shares of common stock.
Price—$1,010 per unit. Pro¬
ceeds—For payment of indebtedness, expansion, estab¬
lishment of additional offices; professional and editorial
assistance, advertising and promotion; and working capi¬
tal.
Office—Widener Bldg., Philadelphia, Pa.
Under¬
writer—Albert C. Schenkosky, Wichita, Kansas.

Travelfares, Inc., Seattle, Wash.
Sept.

14

(letter of notification)

assessable

common

stock.

100,000

shares

of

non¬

Price—At par

($1 per share).
Proceeds—For repayment of loans, working capital, etc.
Office—1810 Smith Tower, Seattle, Wash. Underwriter
—National Securities Corp., Seattle, Wash.
Tri-Continental Corp., New York
Oct. 27 filed 2,573,508 shares of common stock (par
$1),
which will be issuable upon exercise of the common
tiock

purchase warrants presently outstanding. Price—

Each warrant currently entitled' the holder to purchase
1.27
shares at $17.76
per
share for each one share

tpecified in the warrant certificate.

St., San Fernando, Calif.

Inc., Salt Lake City, Utah
Aug. 1 (letter of notification) 600,000 shares of common
(par 16% cents). Price—50 cents per share. Pro¬
ceeds—For expenses incident to mining activities. Office
—Greyhound Terminal Building, West Temple & South
Streets, Salt Lake City, Utah. Underwriter—
Brokerage Co., New Orleans, La.

Dec.

14

(letter

of

notification)

800

shares

of

common

(par $100); and $75,000 of 6% construction notes
due Dec. 15, 1963.
Price—At par. Proceeds—For pay¬

ing notes payable and accounts payable and operating
capital.
Office—Trinidad, Colo.
Underwriters—Fairman, Harris & Co., Inc., Chicago, 111.

cf 6%

12-year registered subordinated sinking fund de¬
bentures, dated Sept. 1, 1955 (with stock purchase warPrice—At

grants).

(in denominations of $100 each
Proceeds—To refinance and dis¬

par

multiples thereof).
charge secured obligation.
cr

Evans & Co., Kansas

Underwriter

—

McDonald,

City, Mo.

Underwriters Factors

Corp.
Dec. 7
(letter of notification) 29,500 shares of 6%%
participating convertible preferred stock (par $10) and
2,950 shares of common stock (par one cent) to be
offered
one

in

share

Proceeds

Vesey
and

units

of
—

St.,

of

10

common

To

increase

New

American

shares

stock.

York,

N.

Securities

of

preferred

Price

—

stock

$100.01

and

unit.

per

working capital. Office
Y.
Underwriter—New

—

51

York

Co., 90 Wall St., New York,

N. Y.
•

Union Corp. of America

Oct.

13 filed

797,800 shares of

common

stock

Price—Proposed maximum offering price
per

share.

Proceeds—To

acquire

one

per

(no par).
unit is $5

life and

fire

one

insurance company, and one mortgage loan firm. Under¬
shares to be sold through directors and
officers. Statement effective Dec. 12.

writer—None:

Union Gulf Oil & Mining
Corp.
£ept. 9 (letter of notification) 600,000 shares of common
«*©ck (par 10 cents).
Price—50 cents per share. Pro¬
ceeds—For

mining expenses. Office—510 Colorado Bldg.,
Denver, Colo. Underwriter—Honnold & Co., same city!
•

U.

S.

Automatic

Machinery & Chemical Corp.
(letter of notification) 300,000 shares of class A
common stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds
For general corporate purposes.
Office—8620
Nov.

4

—

Montgomery Ave., Philadelphia, Pa. Underwriter—Co¬
lumbia Securities Corp., 135
Broadway, New York. Of¬
fering—Expected some time in January, 1956*
'
-




.

from

funds

A

stock.

common

Lake

Price—At par

if Zylstra Corp., Opportunity, Wash.
12 (letter of notification) l,5a0 shares of class A
Price—At par ($100 per share).
equipment, working capital, etc.

stock.

and

initial

general

Reiter

M. J.

Kennel

Club, and

corporate

for

purposes.

Dec.

Aug.

tures

announced that the
considering the sale to the public of a
stock (not more than 75,000
shares) early next year. Underwriters—Probably Union
small

unit.

cents)
five

to

be

shares

Proceeds—For

offered
of

in

stock.

construction

and

units

of

$50

Bldg., Denver, Colo.
writer—Floyd Koster & Co., Denver, Colo.
Woods

Oil

&

year

company

additional

some

who

will

may

issue and

common

about

vote

stock

mid-January

to

sell
its

on

ap¬

Proceeds — Together
with funds from sale of $8,000,000 new 4%% prior lien
bonds, to redeem $10,400,000 outstanding 4J/2% first
mortgage bonds. Underwriter—May be The First Boston
Corp., New York.
proving

Uranium, Inc., Denver, Colo.
Aug. 12 (letter of notification) 2,380,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds
For expenses incident to mining activities.
Nat!

company

announced

was

next

stockholders

Co.,* San Francisco, Calif.

Denver

it

1

early

a

Wonder Mountain

Office—414

Corp.

reported

was

Bangor & Aroostock RR.
Dec.

cracking unit; expansion of refinery; to
outstanding obligations; and for working capital.
Office—North Salt Lake, Utah.
Underwriter—J. Barth
&

Smith, Barney & Co., both of New

plans early registration
shares of common stock (par $1.50). Under¬
writer—Cohen, Simonson & Co., New York.

of

of

common

of 250,000

Price—$52.50 per
installation

of

Automatic Washer

States

and

now

amount

York.

Co., New York.

25

(par

debentures

L.

are

Securities Corp. and

working capital
Underwriter—

Refining Co.
$1,050,000 10-year 6% sinking fund deben¬
Jan. 1, 1966, and 105,000 shares of common

due

City Electric Co.
England, President,

1, B.

directors

14 filed

stock

Un¬

Prospective Offerings

Dec. 5 it
Western

Distributors, Inc., Opportunity, Wash.

Atlantic

if Western Greyhound Racing, Inc., Phoenix, Ariz.
Dec. 19 filed 1,950,000 shares of common stock (par one
cent), of which 1,800,000 shares are to be offered pub¬
licly. Price—$1.25 per share. Proceeds—To purchase as¬
Arizona

Proceeds—For
Address — c/o

derwriter—None.

Birmingham, Ala. Underwriter—Graham & Co., Pitts¬
burgh, Pa. and Birmingham, Ala.

other

Proceed*

Dec.

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.,

of

(five cents).

Office—45 East Broadway, Salt

City, Utah. Underwriter—Bel-Air Securities Corp.,
city.

same

Rena-Ware

and

of

Zenith-Utah Uranium Corp.
Sept. 14 (letter of notification) 6,000,000 shares off class

Honolulu, Hawaii.

sets

loan

bank

$116,250 of 4% convertible notes; also for acquisition,
exploration and development of additional property.
Underwriter—G. H. Walker & Co., New York.

—For mining expenses.

Utah

proposed

$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

•

on

Under¬
•

refinancing

a

Corn

Chemical

Dec.

—

Tunacraft, Inc., Kansas City, Mo.
Aug. 22 (letter of notification) $295,000 principal amount

with

—Together

Francisco, Calif.

Provo,

Offering—

Nov.

Wagon Box Uranium Corp., Provo, Utah
Nov. 21 filed 2,000,000 shares of common stock
(par
five cents).
Price—25 cents per share.
Proceeds—To
explore and acquire claims, for purchase of equipment
and for working capital and other corporate purposes.

Co.,

Corp.

Zapata Petroleum Corp., Midland, Tex. (12/28)
30 filed 120,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds

Utah Grank, Inc., Reno, Nev.
Aug. 15 (letter of notification) 270,000 shares of capital
Price—At par ($1 per share).
Proceeds—For ex¬
penses incident to mining activities.
Office—312 Byington Bldg., Reno, Nev.
Underwriter—Lester L. LaFortune, Las Vegas, Nev.

repay

stock

Uranium

Crerie & Co., Inc., both of New York City.
Indefinitely postponed.

stock.

Investment

Underwriter—

Y.

other

Trans-Western

P.

N.

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 I\ H.

stock

Underwriter—H.

Corp., its subsidiary.

Seattle, Wash., and members of his family. Under¬
Yellowknife

Houdriformer

if Trinidad Brick & Tile Co.

Albany,

St.,

debentures

loans and

bank

Aug. 19 filed 1,000,000 shares of common stock (par one
cent), of which 700,000 shares are to be sold for account
of company and 300,000 shares for account of Stancan
Uranium Corp.
Price—$1.50 per share.
Proceeds—For

13279

San

Trans-American Development Corp.

State

reduce

writer—None.

Utah-Arizona Uranium,

Temple

Proceeds—To

None.

Dec.

lative

stock. Under¬
Offering—

Thursday, December 22,1955

Postponed.

Nov. 14 (letter of notification 45,000 shares of 8% cumu¬

preferred

.

Dec.

if Vacu-Dry Co., Oakland, Calif.
Dec. 16 (letter of notification) 30,000 shares of class A
cumulative convertible stock. Price—$10 per share. Pro¬
ceeds—To repay outstanding notes and bank borrowings,
and for working capital. Office—950—56th St., Oakland
8, Calif. Underwriter—Wilson, Johnson & Higgins, Inc.,

first

of 5.50%

shares

190,000

writer—Dillon, Read & Co., Inc., New York.
Postponed until after Jan. 1, 1956.

..

8

it

was

program.

Exchange Bank, New York

announced stockholders

will vote Jan.

17

proposal to offer to stockholders 590,425
shares of capital stock on a l-for-8 basis.

approving

additional

a

Underwriters—Kuhn, Loeb & Co. and The First Boston

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;
revision
of
corporate structure, etc.
Underwriter —
Straus, Blosser & McDowell, Chicago, 111. Offering—To

Nov.

be withdrawn.

additional

Corp., both of New York.
•

Citizens & Southern National

8

the

Bank,

(1/20)

Atlanta, Ga.

directors

recommended

shares of

common

stock

the

of

sale

(par $10)

to

100,000
stock¬

4

holders

Woodstock Uranium Corp., Carson City, Nev.
Nov.

21

shares

(letter of notification)

3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For mining expenses. Office—Virginia Truckee Bldg.,
Carson City, Nev.
Underwriter—Cayias, Larson, Glaser,
Emery, Inc., Salt Lake City, Utah.

Wy-Cal Uranium Enterprises, Inc., Lander, Wyo.
6 (letter of notification) 273,000 shares of capital
stock (par 50 cents).
Price—$L per share.
Proceeds—
For mining operations.
Officer^-268 Main St., Lander,
Dec.

Wyo.,; Underwriter—Valley State Brokerage, Inc., 2520
South State;J3t., Salt Lake City; Utah.
Wycotah Oil & Uranium, Inc., Denver, Colo.
Npv. 10 filed 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

of

certain

uranium

gas leases and to

the

properties, and in exchange

for such

working interests and properties. Price—Shares
an arbitrary price of $4
per share. Pro¬
ceeds—To acquire properties. Underwriter—None.
to be valued at

Wyoming-Gulf Sulphur Corp.
Oct.

10

filed

on

the

held

as

basis

of

one

new

share

for

each

nine

of Jan.

20, 1956 (subject to approval of
stockholders in January).
Price—$30 per share. Pro¬
ceeds—To increase capital and surplus.

if Clark Oil & Refining Co.
Dec. 14 it

was

of

90,000

about

(par $20) and
&

reported

(1/23-27)
plans early registration
convertible preferred stock
stock. Underwriter—Loewi

company

shares

of

some common

Co., Milwaukee, Wis.

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
be offered in units of

$1,000 debenture and 100 shares
per unit.
Proceeds—To build
plant to make charcoal brickettes and chemical by¬
products, notably furfural. Underwriters — William R.
Staats & Co., Los Angeles, Calif.; and Carl M. Loeb,
Rhoades & Co., New York.
Registration — Expected
of

stock.

a

Price—$1,100

sometime in December.
Dallas

Power &

Light Co. (2/15)
was reported company plans to issue and sell
$10,000,000 of first mortgage bonds. Proceeds—To repay

971,000 shares of capital stock (par 10
cents), of which 700,000 shares are for company's ac¬
count and
271,000 shares for account of two selling

Nov. 28 it

stockholders.

be determined by

Price—On the over-the-counter market at

then

prevailing price, but not less than $2 per share.
auxiliary equipment for Cody plant, for
acquisition of additional site, and related activities.

Proceeds—For

bank

loans and

for

new

construction.

Underwriter—To

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Salo¬
mon Bros. & Hutzler; Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union.Securi-

Volume

Number 5482

182

.

.

.

The Commercial and Financial Chronicle

ties Corp.; Equitable Securities Corp.; Lehman
Blair & Co. Incorporated. Bids—Tentatively
Feb.

ioi

Brothers;
scheduled

Power

Sept. 28 it

was

undertake

some

&

announced that the company expects to
common stock financing early in 1956,

probably first to stockholders (this is in addition to bond
and preferred stock financing planned for Dec. 13). Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
W.
C.
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);
Lehman

Brothers.

A

Dolly Madison International Foods Ltd.
15 it was announced that Foremost Dairies, Inc.
intends at a future date to give its stockholders the right
to
purchase its Dolly Madison stock.
Underwriter—
Allen & Co., New York.
Nov.

Du Mont

Broadcasting Corp.
Aug. 10 it was announced that corporation, following is¬
suance

Dec.

on

2

to

stockholders

of Allen

B.

Du

Mont

Laboratories, Inc. of 944,422 shares of common stock as
a dividend, contemplates that additional shares will be
offered to its stockholders.
This offering will be un¬
derwritten. Kuhn, Loeb & Co. and Van Alstyne, Noel
&

Co. handled

nancing
on

some

Mont

Du

years

Oct. 10 approved

Laboratories class

A stock fi¬

ago.
Stockholders of Laboratories
formation of Broadcasting firm.

Stock

Federal Pacific Electric Co.
it

13

issue

announced

was

are

warrants.

considering an
or
possibly

—

$2,000,000

sale

private

from

Underwriters—H.

M.

of notes, to repay bank
Byllesby & Co. (Inc.) and

Hayden, Stone & Co., New York.

^ Fid-Mix Fertilizers Corp., Houma, La.
Dec. 12 it was reported early registration is expected
of 159,000 shares of common stock.
Price — Probably
$5 per share. Underwriters—Fairman, Harris & Co., Inc.,
and Straus, Blosser & McDowell, both of Chicago, 111.

between

announced company may issue and sell

was

first mortgage
competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
ner & Beane
(jointly); Lehman Brothers and Blyth &
Co., Inc. (jointly); Glore. Forgan & Co.: and The First
Boston Corp. Offering—Expected early in 1956.
$10,000,000

$12,000,000

and

bonds. Underwriters—To

of

be determined by

it General Shoe Corp.

registration
public of¬
fering of 160,000 shares of common stock (par $1) and
an
offering to employees of 36,000 shares of common
stock (of which 12,000 are authorized but unissued) and
24,000 shares are to be purchased from time to time
in the open market.
Proceeds—For general corporate
purposes.
Underwriter — For public offering, Smith,
Barney & Co., New York.
Dec.

directors authorized the filing of a

21

with the SEC covering a proposed

statement

it General Telephone Co. of California
Dec. 20 it was announced company has applied to the
California P. U. Commission for permission to issue
718,862 shares of 4% preferred stock (par $20), to be
first offered in exchange for 5% preferred stock (par
$20) of which there are outstanding 1,437,724 shares;
unexchanged stock to be offered publicly. Price—$20.50
share. Proceeds—Together with funds from sale of
$15,000,000 of debentures and $5,000,000 of notes, to re¬
tire any 5% preferred shares not presented for exchange;
and to pay for expansion program.
Underwriters —
Paine, Webber, Jackson & Curtis, New York, and Mit¬
per

ch urn, Jones &
Green
Dec.

5

it

Templeton, Los Angeles, Calif.

(A. P.)
was

Fire Brick Co., Mexico, Mo.

reported

pected early in

1956.

common

is ex¬
Blyth &

stock financing

Underwriters—May

be

during

Oct.

31

it

was

March.

Nov.

28

Pulp & Paper Corp.

it

was

reported company may do some

public

newsprint mill,
which, it is estimated, will cost about $25,000,000. Under¬
writer—Lee Higginson Corp., New York.

financing

in connection with proposed

Kimberly-Clark Corp., Neenah, Wis.
Nov. 22 it

that the company plans

fur¬
financing, the nature and extent of which has not
yet been determined, except it is not the present inten¬
was

announced

ther

tion to sell additional

plans

some

financing

1956

(probably bonds). Underwriter — To be
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Equitable
Securities

common

stock.

Proceeds—To be

Corp.

Union Securities

Corp. (jointly);
Bros.
&
Hutzler; White, Weld & Co. and
Shields & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Beane, Kidder, Peabody & Co. and Harriman Ripley
& Co. Inc. (jointly); The First Boston Corp. and Glore,
Forgan & Co. (jointly).
and

Dec. 12 it

was

approving

on

proposed offering to stockholders of 150,000

a

Pigeon Hole Parking of Texas, Inc.
22 it was announced that about 800,000 shares of

Oct.

additional capital stock would be offered for public sale
after the first of next year.
Proceeds — Estimated at
about $2,000,000, will be used to pay for expansion pro¬

Underwriters—Porter, Stacy & Co., Houston, Tex.;
Corp., San Antonio, Tex.

gram.

and Muir Investment

Oct.

reported stockholders will vote Jan. 10

additional shares of capital stock.

Price—$25
Underwriters—Rauscher, Pierce & Co., Inc.,
Southwest Co., both of Dallas, Texas.

$600,000 of

plans to sell about
Underwriter—Bache & Co.,

stock.

common

New York.

share.

per

Seattle-First National

and First

Wash.
Nov. 22 it

Modern

Homes

Corp. (Mich.)
reported company may offer publicly
$1,000,000 of convertible debentures and some common*

holders

stock.

Bank, Seattle,

(1/18)
announced bank

was

plans to offer its stock¬
1956, the right to subscribe
100,000 additional shares of

for

Nov.

it

21

was

Business

Manufactures

*—

prefabricated

homes.

Offices—Dearborn, Mich., and Port Jervis, N. J. Under¬
writer—Probably Campbell, McCarty & Co., Inc., De¬
troit, Mich.

Nov. 28 company asked ICC for authority to sell $6,600,000 equipment trust certificates to mature Dec. 15, 19561970 to Despatch Shops, Inc., a wholly-owned subsidiary,
latter

to

ultimately offer the certificates through
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler; Kidder, Peabody

plus.

18 it

New Haven & Hartford RR.

P.

announced

was

stockholders

on

21

Dec.

will

on

secured

non-convertible

100-year 5% debentures, dated
Jan. 1,1956, in exchange for present $55,363,000 par value
5% convertible preferred stock, series A, on the basis
$105 of debentures for each $100

par value of pre¬
stock, plus $5.25 in cash ($5 of which will be
paid as dividend on preferred for year 1955); and (b)
of $72,638,265 of new 5% non-convertible general in¬
come
mortgage bonds, series B, dated Jan. 1, 1956, in
exchange for present $69,179,300 of 4J/2% convertible
general income mortgage bonds, series A, due July 1,
2022, on the basis of $105 of new series B bonds for each
$100 of series A bonds plus $5.25 in cash, which will

ferred

include
Pont
1

1955

&

interest.

Dealer-Manager—Francis

I.

du

Co., New York.

Northern States

Dec. 12 it
sell

was

Power Co.

(Minn.)

stock

common

(probably

-Ar Northwestern Bell Telephone Co.
20

directors

authorized

the

first

to

retire

bank

loans

more

and

(1/31) v

issuance

$25,000,000 of debentures to be dated
1956 and to mature in not

on

or

and

or

18

David

than 40 years.

for

improvements

Proceeds—
and

addi¬

about Jan. 31.

Sabine

River

to

the 'Gulf

Coast

of

the State of

Mississippi. It is estimated tttatHthis, gather¬
ing system will cost approximately $150,000,000. .Type
of financing has not yet been determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
notes, convertible into preferred stock at' maturity, and
common stock).
Underwriter—Salomon Bros. & Hutzler,
New

York.

Southern

Nov. 7 it

Oct. 28 it
about
—

To

Inc.

Nevada

Power

announced

was

reported company plans to issue and sell
$20,700,000 of first mortgage bonds.
Proceeds
repay
bank loans and
for new construction.
was

Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Fonitabie Securities Corp.; Harriman Ripley 8c Co.,
Bids—Expected Jan. 17.

of

one

new

Co.

plans to sell in 1958

company

securities (probably
$7,000,000 first mortgage bonds and $3,000,000 preferred
common stocks).
Proceeds—For construction pro¬

of

new

Underwriters—For stocks: Hornblower & Weeks,
York; Wiliam R. Staats & Co., Los Angeles, Calif.;
First California Co., San Francisco, Calif.
Bonds
be placed privately.
|

gram.
New
and
may

28

Electric
it

Service Co.

(2/28)

reported company plans to issue and
$10,000,000 first mortgage bonds due 1986. Proceeds
—To repay bank loans and*for new construction/Under¬
was

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Boston

Corp.; Union Securities Corp.; Kuhn, Loeb & Co., Leh¬
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 8c Co. Inc. and Stone &
Webster Securities Corp.
(jointly). Bids — Tentatively
man

scheduled

Oct.

11

Feb.

for

Texas

28.

Industries,

shares of

Inc.
authorized

stockholders

stock

new

a

issue

of

30.00&

value), of which
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*
—Rauscher, Pierce & Co., Inc., Dallas, Tex.
new

common

Utilities Co.

(no

par

(1/31)

Nov.

18, the directors authorized the sale of additional
shares of common stock to raise approximately $15,000,000. Proceeds—For further investment in common stocks
of

subsidiaries

derwriter—To

and

for

other

corporate

determined

be

bidders:

Un¬
bidding.

purposes.

competitive

by

and Merrill
(jointly); Union Secu¬
rities Corp.; Lehman Brothers and Bear, Stearns 8c Co.
(jointly); The First Boston Corp. Registration—Expected

Probable

Kidder, Peabody & Co.

Lynch, Pierce, Fenner & Beane

Textron

Inc.

American,

Dec. 3 the directors announced that a public

offering of

$30,000,000 debentures is expected to be made with an
interest rate not to exceed 5% and initially convertible
into

common

Proceeds
gram.

stock at

To

—

a

expand

Underwriter

—

price not less than $30 per share.
non-textile diversification pro¬

Blair & Co. Incorporated, New

Offering—Expected in January.

Bank, Memphis, Tenn.
offering to stockholders

Nov. 29 directors authorized an
of
a

60,000 additional shares of capital stock (par $10) on
basis.
Price—$35 per share. Underwriter—

l-for-10

Equitable Securities Corp., Nashville, Tenn.
Stockholders to vote Jan. 11 on increasing

Meetingauthorized

capital stock from $6,000,000 to $7,000,000.
Westcoast
Nov.

21

and sell

it

Transmission

was

publicly

over

Co.,

Ltd.

plans to issue
$20,000,000 of securities, probably

reported

company

in units of debentures and stock.

now

Bonds

are

expected to

Proceeds—For new pipe line.
derwriter—Eastman, Dillon & Co., New York.

be placed

privately.

York County Gas

(1/17)

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart 8c Co. Inc.; The First

New

basis

and

June

Pennsylvania Electric Co.

the

on

shares held.

Union Planters National

C.

the

11

pected about Feb. 2.

York.

Biritliff, President, announced com¬
pany has filed an application with the Federal Power
Commission for a certificate of necessity to build a
364-mile submarine gas ipipeline off-shofd the coast of
Louisiana from

stock

common

of

to property.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co.
Bids—Expected to
on

of

authority to offer to its common
Feb. 21, 1956, an additional 83,-

immediately after the New Year.
sale

about Feb. 1,

tions

be received

for

Rights are to expire on
March 8. Underwriter—Smith, Barney & Co., New York,
underwrote previous rights offering.
Registration—Ex¬

Texas

stockholders). Underwriter—To be determined by com-j
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:4 and Glore, Forgan
& Co. Bids—Expected to be received on Feb. 29.

To

shares

030

share for each

(2/29)

reported that company plans to issue and

additional

some

Dec.

Commission

S.

stockholders of record

sell

approving a plan of exchange providing for the
issuance (a) of not exceeding $58,131,150 of new un¬

of

Underwriter—Blyth 8c Co., Inc., Seattle, Wash.

Nov.

York,

for

24

(par $20) on the basis of one new share
each eight shares held. Price—To be not less than
$85 per share. Proceeds—To increase capital and sur¬

Texas

New

Feb.

18,

capital stock

& Co.

Nov.

before

or

Jan.

record

approximately $10,000,000

New York Central RR.

with

on

of

it Southern Indiana Gas & Electric Co. (2/23)
Dec. 20 company sought permission from the Indiana

19 it was reported company plans to issue and sell
$10,000,000 of first mortgage bonds during first quarter
of 1956.
Underwriters—To be determined by competi¬
tive bidding.
Probable bidders:
Halsey, Stuart & Co.
Inc.; Kuhn, Loeb <8p Co., Salomon Bros. & Hutzler, Union
Securities Corp. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable Se¬
curities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).

Boston




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.

Pike County -Natural Gas Co.
17 it was reported company

-A- Mercantile National Bank of Dallas

used to pay for* further expansion, estimated to cost an
additional $37,000,000. Underwriter—Blyth & Co., Inc.,

York.

was

by

Salomon

Nov.

about

Hudson

Light Co.

announced company

Offshore Gathering Corp., Houston, Texas

Lighting & Power Co.

reported company may sell early next
$30,000,000 of bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Smith, Barney & Co., Lazard
Freres & Co. and Blyth & Co., Inc. (jointly); Lehman
^Brothers, Union Securities Corp. and Salomon Bros. &
Hutzler
(jointly); Kidder, Peabody & Co.; Equitable
Securities Corp. Offering — Expected in February or
year

Power &

was

determined

Co., Inc. and Shields & Co., both of New York.
Houston

(1/17)
reported company proposes issuance and
sale of $8,000,000 of preferred stock early next year.
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
7 it

Nov.

ders:

it Louisiana
Dec. 19 it

vote

Florida Power Corp.

April 14 it

common

debentures

stock, together with common stock purchase
Proceeds
About $2,000,000, together with

preferred

loans.

directors

income

subordinated

of

basis.

of

Dec.

Exchange by negotiated sale to a pur¬
chaser who will buy at the prevailing market prices,
less a discount of not more than 50 cents per share.

Dec.

shares

it New England Power Co.

Duquesne Light Co.
Nov. 28, it was announced SEC has authorized Standard
Power & Light Corp. to sell not more than 10,000 shares
of the common stock of Duquesne Light Co. on the New
York

stockholders of 100,000 addi¬
stock (par $20) on a l-for|-4
Underwriter—The First Boston Corp., New York.
offering to

proposed

tional

Light Co.

announced stockholders will vote Jan. 25

was

41

Pennsylvania Electric Co.

it Lincoln Rochester Trust Co.
Dec. 19 it
on

lb.

Delaware

(2781)

29

it

was

issuance and

Un¬

Co., York, Pa.

announced

company

contemplates tho
of it*

sale later this year of a new series

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.; Whitea
Weld & Co. and Shields & Co.
(jointly). It is alio

first

determined.

and

possible that issue may be placed privately.

42

The Commercial and Financial Chronicle

(2782)

The

Indications of Current
Business Activity

week

IRON

AND

INSTITUTE:

STEEL

,

steel operations (percent of capacity)
Equivalent to—
Bteel Ingots and castings (net tons)

AMERICAN
Crude

and

month ended

on

Dec. 25

Ago

that date,

100.1

2,416,000

condensate

output—dally average

(bbls.

AMERICAN RAILWAY CAR

1,726,000

New

of

of that date?

Previous

Yea"

Month

Ago

INSTITUTE—

October:

domestic freight cars delivered—

ASSOCIATION

of
Dec.

9

6,341,200

Month

9

§7,018,000

7,801,000

7,553,000

7,105,000

Locomotive

Dec.

9

20,540,000

26,963,000

25,806,000

Dec.

9

2,437,000

2,312,000

2,278,000

2,685,000

Dec.

9

11,803,000

12,47.5,000

11,091,000

10,777,000

Resldual fuel oil output (bbls.)
Dec.
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Dec.

9

8,518,000

8,350,000

7,825,000

7,880,000

9

158,374,000

157,535,000

152,084,000

150,653,000

OF

AMERICAN

12,843

'3,228

2,704

108

85

33

RAILROADS—

24,589,000

gallons each)__

Gasoline

to

stills—daily average

(bbls.)
Kerosene output (bbls.)
Distillate fuel oil output

(bbls.)

output

Kerosene

(bbls.)

Distillate

fuel

Residual

(bbls.)————————

6,836,400

6,808,050

at

freight loaded

of

33,221,000

35,762,000

CONSTRUCTION

(no.

140,103,000

150,606,000

9

42,767,000

44,156,000

727,228
664,474

45,761,000

U.

To South

796,632

653,531

617,489

681,992

605,204

SERVE

Private

construction

Public

.—

—

and

OUTPUT

Bituminous

(U.

coal

S.

BUREAU

and

lignite

Pennsylvania anthracite
DEPARTMENT

STORE

ELECTRIC

Electric
FAILURES

OF

139,050,000

307,848,000

143,677,000

Total

93,847,000

128,080,000

Instalment

62,329,000

105,509,000

Finished

steel

Pig iron

(per gross

22,161,000

28,184,000

31,518,000

22,571,000

Dec. 10
-Dec. 10

10,760,000

*10,380,000

9,850,000

Other

549,000

565,000

197

141

Oct.

:224

Dec. 10

Dec. 17
INDUSTRIAL)

—

DUN

U1,602,000

11,426,000

11,149,000

247

219

214

COPPER

208

Lead
Lead

(East St.

MOODY'S

5.174c

5.174c

5.174c

(tons

Refined

$59.09

$59.09

$59.09

$56.59

$52.17

$49.50

$45.17

$32.00

In

4.797c

Dec. 14

Dec. 14

.

J.

QUOTATIONS):

,

D.

S.

at

Dec. 14

at

45.300c

44.150c

96.750c

15.500c

15.500c

15.500c

Dec. 14

at

PRICES

DAILY

U.

of

15.300c

15.300c

15.300c

13.000c

13.000c

"

^89.375c

S.

94.89

95.01

A.

(tons

107.80

109.79

110.15

111.44

115.04

108.70

108.88

109.60

106.92

107.09

107.98

DAILY

102.13

102.80

105.34

106.21

107.27

108.16

111.25

107.98

:

'

108.34

109.24

2.87

2.88
3.34

3.35

2.87
3.29

3.13

3.18

3.16

3.09

3.23

3.19

Orders

Group

received

Unfilled

orders

OIL, PAINT
1949

AND

LOT

DRUG
=

DEALERS

REPORTER

3.26

3.21

398.6

409.4

FOR

ON

N.

EXCHANGE

102

94

Y.

991,607

1,103,947

$51,206,914

Nov. 26

769,032

1,117,375

784,328

9,797

4,793

763,061

1,107,578

779,535

1,176,266

$59,408,308

$38,548,591

AND

ACCOUNT

ROUND-LOT

OF

THE

STOCK

MEMBERS

N.

Y.

314,300

208,600

214,760

314,300

2~08~6()6

371~070

479,820

409,290

175,990

2,827,355

*62,257

62,111

26,677

*26,666

25,001

PRICES

(E.

M.

&

J.

QUOTATIONS—

42.964c

43.030c

29.700c

43.860c

43.411c

31.259c

;

15.500c

(per

(per

(per

97

Silver and

14.800c

£108.097

£106.589

£103.972

36.470c

36.470c

31.970c

33.000c

33.000c

33.500c

29.000c

$94,460

$77,667

13.000c

13.COOc

11.500c

£92.432

£90.896

£81.219

£91.401

£90.696

£81.216

$1.70000

$1.70000

$1.70000

$1.70000

$1.70000

$1.70000

$1.70000

$2.60000

—

$1.70000

$1.70000

$2.60000

$2.60000

Sterling Exchange—

Silver, New York (per ounce)
Silver, London (pence per ounce)

91.461c

§§New York,

74.313

$2.79205

$2.79434

97.804c

96.C90C

91.109c

96.804c

(per ounce, U. S.

price).

95.090c

$35,000

$35,000

$275,560

$320,333

24.400c

24.400c

22.200c

32.500c

32.500c

27.000c

64.500c

64.500c

60.938c

$2.25

$2.25

$2.25

>3,680,000

£11,190,000

£52,656,000

26,938.000

27,861,000

25,522,000

29.523,000

31,580,000

29,032,000

9,802,000

12,705,000

10,909.000

109

.109

106

103,764,554

109,723,192

t

Bismuth

pound7)__

(per

90.109c

$35,000

$279,390

s.

i

(per flasR of 76 pounds)—
Aluminum, 99% plus ingot (per pound)
Magnesium ingot (par pound)
._—
Nickel

85.250c

79.958

$2.80145

,

,

min._*

99%

91.794c

79.295

(check).

Tin, New York straits

**

23.500c

33.500c

Louis.

pound)

Sterling Exchange

Gold

'

$101,570

poundU—

^

15.000c

it5.300c
£106.881

£107.781

ounce)

(per pound)—East St.

15.500c

15.300c
£108.165

299,970

320,110

PORTLAND

OF

375,550

549,780

Nov. 26

ACCOUNT

407,330

502,940

9,749,740

12,657,850

9,217,160

13,825,700

10,125,290

13,207,630

9,624,490

14,328,640

MEM¬

of

(BUREAU

MINES)—

1,181,490

1,579,430

188,990

245,270

209,440

1,037,560

1,345,820

Nov. 26
on

1,727,660

Nov. 26

sales

Other transactions initiated

986,770

295,180
1,296,20C

1,226,550

1,591,090

1,196,210

1,591,380

the floor—

purchases

Nov. 26

sales

238,870

375,620

Nov. 26

248,900

14,420

47,400

250,490

346,980

20,300
256,440

264,910

394,380

276,740

Nov. 26
;

transactions initiated

off the

Nov. 26
floor—

used

SELECTED

RYS.

465,700
^

25,420

„v

'

'

409,010

Nov. 26

434,430

Bhort sales

Nov.—

411,745

703,430

442,334

533.434

of

Other

Total

Income

—

U.

S.

DEPT.

(1947-49

=

Other

54,650

73,420

435,947

558,390

Depreciation
Federal

Net

513,065

709,202

490,597

631,810

1,808,105

2,806,710

1,872,724

2,578.564

On

275,450

387,470

284,390

394,020

On

1,729,075

2,307,202

1,679,157

2,004,525

2,263,600

2,694,672

1,963,547

OF

111.0
83.3

-

111.1

111.1

109.4

*83.8

84.3

90.2

97.8

98.0

98.8

Dec. 13

72.4

74.5

84.9

Dec. 13

119.4

*119.4

119.2

114.7

figure.
([Includes 817,000 barrels of foreign crude runs.
§Based on new annual capacity
1, 1955, as against Jan. l, 1954 basis of 124,330,410 tons. tAll-time
high record.
tNumber of orders not reported since
introduction of Monthly Investment Plan.




4,150,422

125,378,055

94.067,691

85.242.328

93.786.873

62.429.928

5,645,860

3,177,915

2.901,794

79,596,468

90,608,958

59,528.134

44,746,702

44,670,450

43,730,891

44,464,555

48,512,325

18,528,551

17,406,295

29,344,107

17,732,463

1,027,685

—

structure & equipment)

Net

Net

stock

stock

income

of

AND

S.

4,537,038

2,510,355

3.72

3.97

2.97

charges

1

TRANSACTIONS

GUARANTEED

A.—Month

IN

DI¬

SECURITIES

of November:

sales

$30,687,000

purchase

and

'♦F.o.b.

Port

quotation
East

at

$7,893,500

i

'Revised figure.

producers'

from

—

——

fixed

to

tBased

platers'

([Domestic five tons

of 125,828,310 tons

!

taxes

appropriations:

preferred

Ratio

103.4

71.9

♦Revised

of Jan.

income

common

RECT

and foods

4,308,650

116,637,575

—

(way &

TREASURY MARKET

\

Dec. 13

other than farm

17,969.249

98,219,113

4,572,365

!

income

from

income

OF U.

Dec. 13

—Dec. 13

foods

80,248,864

19,963,513
129,686,705

2,657,620

100):

Meats

1

deductions

94,800

Commodity Group—
Farm 'products

I

available for fixed charges
after fixed charges

614,402

.

commodities

CLASS

17,445,386

72,040

Nov. 26

SERIES

S.

121,209,940

deduction

441,025

Nov. 26

NEW

U.

operating income—

Miscellaneous

Nov. 26

PRICES,

OF

income

Dividend

sales

ITEMS

income

Nov. 26

sales

7.^.

September:.

railway

Nov. 26

Short sales

:

(Interstate Commerce Commission)—

Month

Nov. 26

Total round-lot transactions for account of
members—
Total purchases

-

(barrels)

month—barrels)

INCOME

Nov. 26

sales

Total sales

OF

'

—

mills

(at end of

Income

purchases

All commodities

(barrels)

from

Net

Bhort sales
Total sales

Month of September:

Shipments

Capacity
1,157,490

CEMENT

Production
Stocks

Nov. 26

sales

Processed

♦158,974

*2,797,698

90,707

tons)!.

(in short

Zinc

371,070

Nov. 26
FOR

Bhort sales

—

186,502
2,960,448

.

L^D.—Month

Nov. 26

—

All

83.5

•

NEW CAPITAL ISSUES IN GREAT BRITAINMIDLAND BANK

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which
registered—
Total purchases
—Nov. 26

LABOR

214,760

(SHARES):
;

TRANSACTIONS

WHOLESALE

84.5

of

sales—

sales

Other

13,696,000

STOCK

Total sales

Total

middle

Quicksilver

TRANSACTIONS

Short sales

Other

14,843,000

86.0

at

t+Zinc, London, prompt (per long ton)
ttZinc, London, three months (per long ton)
tCadmiuin, refined (per pound)___

$53,152,371

Nov. 26
ON

14,663,000

COMMISSION—

ounces)
(in short tons,)—

Platinum refined

7,271

$39,344,687

Nov. 26

1

12,454,945

1:

—_

1,183,537

5,971

Nov. 26

SALES

Dec.

L

t+Prompt, London (per long ton)___!
ttTliree months, London (per
long ton)„
tl Antimony, New York boxed
Antimony (per pound) bulk, Laredo
Antimony (per pound) Laredo—

$53,497,006

dealers—

STOCK

of

(in fine ounces)

Cobalt,
1,279,079

$74,162,912

Nov. 26

Total round-lot

Total

106.79

868,377
$49,353,310

Nov. 26

by

Number of shares

Other

107.06

Nov. 26

sales

Other

.

Nov. 26

TOTAL ROUND-LOT

Total

107.17

as

Employment
(1947-49=100)

tCadmium

Nov. 26

purchases

33,290

OF

_

Bhort sales

Total

107.14

DEPT.

Crop

COMMERCE

§Cadmium

other sales

105,293

53,625

13,052,006

S.

Common, New York (per pound).
Common, St. Louis (per pound

398,913

STOCK

Dollar value

Other

680,461

COMMISSION:

Bound-lot sales by dealers—
Number of shares—Total sales

Other

98

(customers' purchases)—t

short sales

Customers'

BOUND-LOT

102

638,940

Nov. 26

Customers'

FOR

258,595

ODD-LOT ACCOUNT OF ODD-

SPECIALISTS

by dealers

EXCHANGE

262,341

295,930

Dec. 16

value

Other

249,427

286,926

INDEX—

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

Bound-lot

397,989

285,519

Dec. 10

109

AND

264,700

654,613

U.

bales

gross

Lead—

3.07

405.2

.—

PRICE

■

3.10

3.28

Number of shares!

Dollar

J

Dec. 10

of period

EXCHANGE —SECURITIES

sales

3.27

:

Dec. 10

at end

STOCK TRANSACTIONS

Odd-lot

3.32

Dec. 10

(tons)

AVERAGE

3.32

406.2

activity

144,571

(tons

Electrolytic domestic refinery
Electrolytic export refinery

3.45

3.23

Dec. 20

(tons)—

of

92,918

,

Average for month of November:
Copper (per pound)— *

3.13

3.58
3.38

ASSOCIATION:

(tons)

Percentage

3.78

3.62
3.43

-Dec. 20

INDEX

PAPERBOARD

3.33

3.63
3.44

Dec. 20
„

COMMODITY

3.34

Dec. 20

—

METAL

3.04

Dec. 20

Group

79,231

133,880

133,946

period

Railway

Copper

2.90

3.24

Dec. 20

-

—

*109,082

127,765

2.59

Dec. 20

—

Group

of

United States:
Golcl

111.81

Dec. 20
«

110,071

OUTPUT

Lead

Aaa

Production

1,754

October:

pounds)

end

at

Sy^r (in fine

AVERAGES:

A

NATIONAL

2.832

1,829

(BUREAU OF MINES)—
Month of September:
Mine production of recoverable
medals in the

108.88

107.27

Dec. 20

Baa

of

METAL

105.00

105.17

Dec. 20

Aa

of

(Tunning bales)

500-lb.

October

110.70

101.97

Dec. 20

corporate

MOODY'S

Production

112.37

■'

Dec. 20

—

YIELD

Utilities

2,377

3,ICS

49,733

of 2,000

AGRICULTURE—1955

110.70

Dec. 20

Government Bonds

Industrials

1

98.70

106.92

Dec. 20

Group
Group

month

PRODUCTION^—

Index

95.19

106.74

Dec. 20

Utilities

Public

7.023

2,666

7,594
2,657

3,218

K'

COTTON

15.000c

Dec. 20

Group

Railroad

4,651

7,677

11.500c

Dec. 20

S.

1,637

5,311

31.125c
'

Dec. 20

—

—

D.

1,611

"

2,000 pounds)
2,000 pounds)

copper stocks
of 2,000 pounds).

14.800c

13.000c

Dec. 20

Average

5,324

1,627

of

Refined
'

AVERAGES:

Aa

BOND

5,848

II

fabricator?—

INTERSTATE

—

MOODY'S

10,340

5,917

1,793

credit

(tons
to

29.700c

44.500c

105.375c

Dec. 14

at

Aaa

Industrials

42.950c

43.450c

110.000

Dec. 14

at

Government Bonds

Public

42.975c

Dec. 14
Dec. 14

at

Average corporate

Railroad

21,952

13,929

COTTON GINNING (DEPT. OF
COMMERCE)—

1

Louis)

BOND

$28,975

26,699

14,095

5,324

INSTITUTE—For

Crude

_Dec. 14

York)

Louis)

(St.

Zinc

$34,293

26,963

goods
modernization loans

credit

Deliveries

PRICES:

M.

&

refinery

(New York)

$34,640

Copper production in U. S. A.—

&

ton)

(E.

(New

credit

loans

Service

9,909,000

Dec. 15

AND

lb.)

(per

Domestic refinery

tin

term

Single payment loans
Charge accounts

RESERVE

Electrolytic copper—

Export

1,677

31:

:

~

.

Btraits

270.608

2,297
500

intermediate

of

credit

Non-instalment

631,000

236

272,785

173,847

tons)——.

consumer

Personal

8,878,000

562,000

207,475

„

credit

Repair and

(per gross ton)

METAL PRICES

.

Automobile

100

=

and
as

consumer

163,099,000

MINES):

INDEX—FEDERAL

(net tons)

(net

short

millions

191,283,000

kwh.)

000

COMPOSITE

Scrap steel

175,233,000

tons)

INSTITUTE:

(COMMERCIAL

AGE

Dec. 15

in

173,572,000

BRADSTKEET, INC
IRON

$271,757,000

151,411,000

(tons)

AVERAGE

(in

output

$401,695,000

Dec. 15

(tons)

SALES

SYSTEM—1947-49
EDISON

$330,333,000

.—Dec. 15

municipal
■„

COAL

America

Dec. 15

construction

State

$348,805,000

(net

.31,331

2,999

America

SYSTEM—REVISED SERIES—Esti¬

mated

Dec. 15

.

302,159
265,287

33,873

Central

CONSUMER CREDIT
OUTSTANDING—BOARD
OF GOVERNORS OF THE
FEDERAL RE¬

ENGINEERING

—

construction—,

S.

anthracite

Europe (net tons)
(net tons).

and

To Asia

52,803,000

728,216
•-

MINES)—

ViM

North

To

124,067,000

Dec. 10

OF

Pennsylvania

34,210,000

134,413,000

of cars) —Dec. 10

cars)——

installed in service

(BUREAU

To

MEWS-KECORD:
Total

EXPORTS

Undesignated

freight received from connections

(number

October:
units

Month of September:
S.
exports
of

U.

RAILROADS:

AMERICAN

Revenue

ENGINEERING

32,005,000

9

Dec.

—

COAL

of

(net tons)

9

Dec.

at

Re/enue

CIVIL

0,992,500

Dec.

(bbls.)
(bbls.)

oil

OF

—

at

oil

fuel

ASSOCIATION

as

are as

Month

72.4

Dec.

42

Crude runs

y

of quotations,

cases

either for the

are

Latest

Month

*2,421,000

in

or,

Ago

♦100.3

§2,353,000

production and other figures for the

cover

Dates shown in first column

Year

Week

§97.5

Dec. 25

Month

Thursday, December 22,1955

.

INSTITUTE:

PETROLEUM

01)

Previous

Week

Indicated

or

month available.

or

/

Latest
AMERICAN

following statistical tabulations

latest week

..

or

Colburne,

on

more

U.

but

S.

morning session

St.

Louis

the producers' quotation.

quotations.

exceeds

§Average of quotation

less than carload lot,

duty included.
of
0.5c.

London

Metal

on

boxed.

tJAverage

$14,238,500

tBased

of

Exchange.

on

the average of the

special shares to plater.
§§Price for tin contained.

daily

mean

of

tfDelivered

bid

where

and

ask

freight

Number 5492

182

Volume

..

The Commercial and FinarutiatiChr^i^e^'

.

tion

of

their

the

having

working

bulk

vast

capital

of

and

free

available for seeing them through
the gigantic
task of
marketing

10,200,000

shares

Co.'s stock.

ference

as

Motor

from

fortnight ago.

as a

At that time

all things pointed

with

year-end

Inventories

fairly

tors had been in
and

borrowers

project seems

clear track ahead..

of .the

Fact

much

healthy

is

that

in¬

pretty
lugging
a

to

backlog

cerned, the dam broke and buy¬
in

came

to

New

„

up

just

about

mop

had

"cash"

buyers

have

and

that

needed

was

earlier

to

appeared

spark

all that

the

several

offerings which had been

lagging.
Consolidated

Edison's

$70 mil¬

lion of 3%s,

brought out early in
101 to yield about
3.32%,
had
experienced
some
rough going. But the sudden surge
of demand just about cleaned up

the

month

of

In

at

Clear

the

for

surprise

The first

found it¬
self in better position for the ap¬
proaching Ford Foundation's huge
Ford Motor stock operation if it
had drawn the plans itself.
Other

lagging

debt

6,952,593

Speculation on' pricing natural¬
ly will be rife between

and
the projected public offering date.
But those withr sharp pencils, figuring that a stocky of this caliber
should
be
priced! around ninetimes indicated £prnings, calcu-

ization.

the past

fortnight, have since moved into
investor hands in a large way.

scored

which

momentarily have since
recoveries from the

lows.
In

short, the underwriters and

dealers along with them now find

in

the

enviable

posi-

Bev¬

erly Drive.

Davidson Adds

Staff

to

(Special to The Financial Chronicle)

FRESNO,

Calif. —Robert

Frauenholtz

has

been

DIEGO,
is

the

—

to

Jan.

on

1,

&

Co.,'

E.

S.

AMSAF

Corporation

Coirpojr|tion

GRAND

1951.

,

...

3601

Connecticut

HodgdoA

Mr.

Avenue.

Auchincloss, Parker & Redpath.

0

,

Forms H. A.

Hyman Co.

business from offices

Idaho—Western

UNITED SHOE MACHINERY

BROOKLYN, N. Y.—Harry A.
Hyman is engaging in a securities
under

Street

16 Court

at

firm

the

ROME, Ga.—The firm

name

of

Fla. —Eva

BEACH,

01

Director.1

ol

37Vi

cent:

stock and 62ft

ferred

per

Dividend

dec-ared

stockholders ol record

February 1,1956
3. 1956.

,anuary

WALLACE M

KEMP.

Treasurer

BFACH,

PALM

WEST

Hector
with

The

Fla.

—

is

now

Pont

&

Co.,

212 Datura Street.

Francis

du

I.

Dividend No. 209

OTTO W.

Treasurer

and

21,

rflvlc*"--*

°'"!>

of

T» —

to engage

on

December

the

of

close

a

business

on

December

Y.

N.

Preferred

payable January 1, 1956,
record
at
the close
of

Stock of the company,

of

stockholders

to

uiism

uncemoer

un

,v>

l9i»a.

41,

Board of Directors of this company on
December 21, 1955, declared a dividend of 20
cents per share on
the outstanding Common
Stock of the company payable February 1, 19&6,
to

stockholders

of

close of busi¬

record at the
1956.

10,

January

on

FRAHER,

EDWARD

CANADIAN

4,

Cumulative

Series

of Directors

1955, declared
fourth quarter

this company on
the regular quar"
'

Directors of
1955, declared

5'/2%

standing

Board

cash dividend for
of the year of 55
cents
per
share upon the Company's
common
capital stock. This dividend
will be paid by check on January 16.
1956, to common stockholders of record
14,
the

The

STRAUSS

Vice-President

of

Board

The

December

A
quarterly dividend of seventy-five cents
(75c) per share on all the outstanding stock of
the Company has been declared payable Janu¬
ary
20, 1956 to stockholders of record at the
lose of business December 28, 1955,

YORK

NEW

STREET,

BROAD

.

'

San Francisco, California

CITY INVESTING COMPANY
25

'

27, 1955. The Transfer Books will not
be closed.
*
K. C. Chrjstensen, Treasurer

DIVIDEND NOTICES

COMBUSTION ENGINEERING,
INC.

Electric Co.
\

Common Stock Dividend No. 160

Jr.

McDonald,

J.

and
■

(Special to The Financial Chronicle)
^

Pacific Gas

DIVIDEND NOTICE

With Francis I. du Pont
David Farrell Opens
ANGELES, Calif.—David
is conducting a securities

Secretary

PACIFIC

RAILWAY COMPANY

Southern

Dividend Notice
At

Edison

meeting of the Board of
Directors held today a final divi¬
dend
of
seventy-five cents per
a

the

share

on

Stock

was

Ordinary

the year 1955, payable in Canadian
funds

on

February

29,

1956,

to

shareholders of record at 3:30 p.m.
on

January 6, 1956.

At

meeting of the Board of Direc¬

a

tors

of The Gamewell Company,

dividend

of

40

cents

held

16, 1955, a

today, Friday, December
declared

By order of the Board.

California
Company

dividends

Capital

in respect of

declared

share

per

the

on

authorized the payment

Secretary.

of the

following quarterly dividends:

was

Common
16,
stockholders of record at the
payable

The Board of Directors has

COMMON STOCK

Stock of the Company on January

FREDERICK BRAMLEY,

Dividend No. 184

1956, to

60 cents per share.

business

close of

January 5, 1956-

on

E. W. Sundberg,

Montreal, December 12, 1955.

PREFERENCE STOCK,

Treasurer

4.48% CONVERTIBLE SERIES
Dividend No. 35
28 cents per share.

NOTICE

DIVIDEND

PREFERENCE STOCK,

The Board of Directors of the james b.
beam distilling co. announces Dividends

payable

as

NATURAL

SASH DIVIDEND

(7'Ac)
t j

per

seven

and

one

stockholders

of record

half

cents

at

close

New York 20, N.

(1 Vz%) stock
to

one

and

one

at

close

of

business December 27, 1955.

board of

close

of

of

directors

at

the

January

16,

record

business

1956.

T.Jeremiah Beam,

R. E. Palmer,

Vice-President

December 15,

1955

at

ber 29,

An

stockholders

By Order Of The Board




record

has this day declared a regu¬
lar quarterly cash dividend of
Forty-Two and One Half Cents
(42
pef share on the capi¬
tal stock of the Company, pay¬
able on February 15, 1956 to

half percent

payable January 6, 1956

stockholders of record

Y.

Dividend No. 32

The

Secretary

the close of business Novem¬

1955.

extra

per

share.

The above dividends are pay¬

able January

31,1956, to stock¬

holders of record

of

one

($1.00)

share was declared, payable
December 22, 1955, to stockholders of
record at the close of business No¬

dollar per

An additional extra

dollar

p. c.

hale,

January

holders

of

was declared,
1956 to stock¬

12,

record

the close
1955.

at

business November 29,
G.

of

GREENBURGH

Treasurer.

Treasurer

one

share

per

payable

dividend of

from the

Company's office in Los Ange~
les, January 31.

vember 29, 1955.

(SI.00)

January 5.

Checks will be mailed

dividend

JOHN
Minim:

Dividend No. 31

28V2 cents

quarterly dividend of fifty (50c)
cents per share was declared, payable
December 22, 1955, to stockholders of

of

STOCK DIVIDEND

N. Y.

4.56% CONVERTIBLE SERIES

A

30 Rockefeller Plaza

business December 27, 1955.

A Dividend of

GAS

COMPANY.

share payable January 6,1956

Company

Broadway, New York 6,
November 17, 1955

CI

follows:

A Dividend of

Miami Copper

CONSOLIDATED

a

hare on the Pre¬
share on the

cents per

Common stock, both payable
to

har

C.

Wagner has been added to the staff
Frank B. Bateman, 243 South

John W. Williams Company, 3
Broad Street, has been changed to County Road.
Williams & McWilliams.

_

dividend

(Special to The Financial Chronicle)

PALM

of

LOS

Board

The

of

name

Bateman Adds to Staff

Changed to
Williams & McWilliams

Farrell

CORPORATION
Consecut.ve Quarterly

202nd

December 14. 1955

Firm Name

Mt. States Branch

C

af¬

Securities

was

Arthur R. Mead,

LAS

DISTILLING

Colo.—R.

become

DIVIDEND NOTICES

previously
with
Kreeger
&
Hewitt and

Jones,

L

~

,

POCATELLO,

bUjs|ness.

JAMES B. BEA

has

Columbia

securities business from offices at

ness

DIVIDEND NOTICE

with

"as

has been

VEGAS, Nev. — Mountain
Securities-iSorporation has
opened a branch office in the Riveria Hotel, under jhe direction of
Harry R. Lahr.

JUNCTION,

Lawrence

filiated

WASHINGTON, D. C.—Ander¬ Company, Incorporated, 407 Main
D. Hcfdgdon is conducting a
Street.

was

offices at 120 Broad¬

YofkMity,

.»

son

name

,

Exch^|ge.

AMSAP

Columbia Sees. Adds
(Special to The Financial Chronicle)

at

415 Laurel
Street, members (Of the Los An¬
geles Stock
Hope

K.

Louis

A. D. Hodgdon Opens

DIVIDEND NOTICE!

Robley

with

FRANCISCO,
Calif. —
Strickler has become
connected with Harris, Upham &
Co., 232 Montgomery Street. Mr.
Strickler
was
previously
with
Reynolds & Co.

North Fulton Street.

£obaj

of

namg

present

YAKIMA, Wash.—Mutual Funds

Chronicle)

lllif.
now

SAN

Harry

Co., 925-C

Hope Add| to Staff
FxnI^cial

(Special to The Financial Chronicle)

A.

added

the staff of Davidson &

V

M

on

Merrill

and

With Harris, Upham

Calif.—

South

233

Spring Street.

States

themselves

York

Opens Branch Office

nad

good

Inc.,

business from offices at 626 South

way, New
in a securities^

Prices for such issues

New

i947| under
Corp.
The

now

a
figure of> around $70 a
share, based on projections put¬
ting this year's earnings around
$7.80 a share fol^^me new capital-

offerings,

in

vestments,

lated

formed with

skidded

when it

|riginally indi-

shares

loose

syndicate

in

Western bees. Branch
came

HILLS,

Lawrence A. Nessamar has joined
the staff of
Real Property In¬

cated.

several of which had been turned

from

rated

Collins

&

(Special to The Financial Chronicle)

BEVERLY,

thatfthe registration Securities Corporation has opened H. A. Hyman Co. Mr. Hyman was
to cover contemplated sale of
a branch office in the Whitman previously with First Investors
million share! instead of the Hotel under the management of
Corporation.

SAN

fra¬

not have

could

The corporation, whose office is
located at 42-26 28th St., Long
Island cit
N Y was ^corpo!

Holt

Lynch, Pierce, Fenner & Beahe.

disclosed

was

Baskerville

ternity

dental units.

opened a branch office
Founda- a^ 16 South Third Street under the
big topic direction of Brooks Flewelling.

Ford

with

Joins Real Property Inv.

an

days of this week.

Ford

banking

'Cav»™ Corp. manufactures
comnltrasomccuttmg devices As of
N°v' ,15' 195:5' ll had a backlog
Sorw!!611
ibe amounit of $165,-

through the closing

(Special to The

investment

~

adopted

oi.fthX

discussion

this situation.

The

>'

tion naturallyTiFoved the

been

persisted in standing
aloof. At any rate several came in
for
large blocks of the Jersey
they

Bell's

:ior to the Ford

unemployed

or

might

they

as

the only im-

the$re£istration state¬

the account

10.2

institutional

is

cover thie projected offering of Ford MoIot Co. stock for

was

in

...

„

Proceeds will be used
HitiVmnV wnrirfno^irnSi
?• I
nivn
?aPlta' t° retire
f^':t0erI:™obllgatlonsand mcrease

2,,

ment to

did not want to finish the year so
funds

for bids Jan; 17

Filing of

offerings.

heavy

.

,

en-

,„Th®
.h__.

SAN
Corporation, 51 East
FRANCISCO,
Calif. —
Street, New York City has Richard I. Cottrell has joined the
staff of A. G. Becker & Co., Inc.,
changed to Havener Secu¬
rities Corp.
Russ Building. He was formerly
been

Cor-

Raising the Ante

Telephone
Co.'s offering
million of
40-year debentures, priced to
yield 3.33% touch off the lastminute rush to pick up available
Evidently

un-

portant prospect
business.
'i.

Bell
of $25

Jersey

the

industry will be
gaged in the Ford operation.

everything.

up

from

cue

derwriting

the

over

But suddenly, so far as
corporate market was con¬

ers

their'

virtually the entire

fact that

holidays.
the

coSslTat su*eh

.on?nns^ania feJ?trl.c Co".wlth

were

reconciled

rather

literally

P I and $8 million of preferred
mdll°n ®fl£lrstf mortgage
bonds

matter

bankers

of

took

Cavitron

?omPleted, all of said shares havJn?
? stock was
a* $16-50 per share.

jord

inclina¬

in debt securities reaching market.

vestment

panies

of

(Special to The Financial Chronicle)

42nd

is

other

commitments

or no

new

on

Inves¬

reluctant mood

a

displayed little

tion to take

substantial

its shelves.

on

Sle

shares

Joins A. G. Becker

Corp.

of Havener-Hall

name

43

Securities

Schuster & Co., Inc., New York,
has announced that its offering of

18,035

bare
The current year isrclosing out•
in much better fashion for Under^v ibr^psrh the-end, of January arid
February "before prospecwriters and their dealer organiza¬ early
tive borrowers will be back in the
tions than had been indicated as

to the industry going through the

The firm

Pbration common stock has been

The. calendar Js

recently

Now Havener Sees.

Schuster & Co,, Inc.
Sells Gavifron Slock

formidable inter-

any

a

^

Light Ahead

concerned, the
assured of

Ford

>

Green
So far

of

(2783)

December 16,1935
-

i

j

The Commercial and Financial Chronicle
44

..

Thursday, December 22,1955

.

(2784)
allowances
its tre¬
mendous success in making
fools of each generation of govindustry's depletion

BUSINESS BUZZ

for

from the Nation'#

have

who

pre¬

dicted the ending of oil supplies
and the need for government to

get

firm

the

And You

Capital

nor

purposes,

ernmentalists

n..
Behind-the-St en# Interpretation*

tax

industry's development.

locked

hands

around

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
WASHINGTON, D. C.

<?ne

—

of shows in just
about a generation of the an¬
nals
of
politics is this fight
over the natural gas bill, a fight
of the strangest

incidentally, the

which,

in

chances

heavily

weighted

are

against the gas producers.
It was about 1938 when Con¬

the bill

killed

Truman

Harry

the "Chronicle's"

Natural

the

Act/ providing for the regulation of the rates at which

for

the

the first

passed

gress

pipelines transported
gas in interstate commerce. The
pipeline was thus accorded its
place along with other interstate
utilities, whose rates would be
regulated to prevent abuses.
interstate

natural

When

sold to

is

gas

local distributor for piping to
the final consumer, that local
a

j.

regulated
state

who

or

time,

the

1938

original

the

that

exempted local

transportation of

interstate

the

around

woods

the

However,

Washington, D. C., in the 1940's
were
full of ardent regulators,
and

Leland

particular,

in

one

*

Olds,

former Chairman of the
Commission, had

a

Federal Power

pay

dollars
houses

else
in

is

however,

fight,

gas

neither

curiosities of the

the

Mr.

Olds

nor

that
one

any

sold the FPC as such

ever

recommending that

of

favor

producer's price of
regulated.
the

be

gas

industry,

industry

$2.08 which is the bone of

contention.

"liberals"

the

wellhead

prices into the
regulatory maw,

gas

Federal

vast

swallow

to

the gas and oil peo¬

however,

ple in 1950 persuaded Congress
by a substantial majority to pass
its

which

bill

a

sponsors

as-

serted was for the purpose of
re-affirming the intent of the
1938 act, to exempt production

FPC

gathering from

and

reg¬

ulation.

President

however,
sharp an

Truman,
always had as

who

vote

the

as

Wendell
have

quick

the

for

eye

Justice

late

Holmes

had

for

and

is

Oliver

supposed to

girlish

a

easy

figure,

joined with those who took the
view that this

was

and vetoed the

gouge consumers

bill.

bill

The

over

scheme to

a

failed

to

the individual consumer

cost to

the

regulation

field of the controversy.

narrow

propaganda against the

In their

initial

the

of

still

FPC

opposing

production

the

thing

along until the

case,

and

rocked

of 1954

summer

of

in

States,

ruled

field

that

prices

regulation,
are

the oppon¬
careful not

avoid narrowing the
instead imply that

to

only

bill

the

of

but

scope

ending

is

of
of

regulation
objective

ALL

prices

the

gas

the

bill.

Harris

the

against

Arrayed

aside
from
the
solid
"liberal" phalanx, is the CIO.

bill,

CIO

The

made

TV

a

film

at¬

bill, and it
is
being
shown
around
the
country by local gas distribu¬
tors.
The local gas distributors
the Harris

tacking

also

have

front

the

to

fight against the bill,

and
ber

of

influenced

have

local
to

merce

mobilized

been

any

num¬

of

chambers

join the pack

com¬

on

the

theory they are protecting mil¬
lions of consumers against

higher

Another

paradox of the cur¬

political
is

bill

that

in

House

exempt

the

of

vide, via the pipeline, for the
regulation of the wellhead price
of gas,
the "liberal" and CIO
opposition is just as implacable
in its opposition.
this

a

there

simple explanation.

ified

natural gas from

committee,

bill

the

the "liberals"
death

to

sounds
issue.

set

is

an

issue
as

so

much

is

against

demagogue

it

that

Such

political

a

easier

bill

a

like

business.

as

show over this
passed by the
it

1955

—

does

although

NOT

billed

such

by

the

gas

,—

ing

that

know

this

bill

into

;

of

Will

The

ascertain

gress."
would

in

any

not

this

the

have' had

extremely

affirmed

House

with

such

Con¬

effect
must

to

engage

The

a

or

1950

majority

This

clearly expressed,

intent
an

was

expression

Iiardly vitiated by the fact that




floor, the "liberals"

tacked

court

of Congress was opposed to this

regulation.

the

of

tedious

that

to

on

the

case

painstaking research.
vote

scope

attempts

"intent

the

In

it

who entered the Mor¬
in 1935 as a trainee,

on

Brooklyn
been

an

School.

Law

Lindsay,

a

graduate of Yale,

has been with Morgan's since 1949,

becoming

an

in

He

Assistant Treasurer
is assigned to the
general banking department.
Messrs. Blair, Cady and Preston
are
in the general banking de¬
1954.

partment; Messrs. Butler and Le¬
roy
in the foreign department;
Messrs. McGinnis and North in the

statistical

department;

Brooks

the

in

the

fair

field

gas or

extend

or

the

the
is

in

practical

-

fact

failure

of

partment.

Harris

the

if, it is noted, the in¬
dustry itself is not apparently
that pessimistic.
The worst is
that the bill might be passed,
twisted off course 180 degrees,
with a utility standard of ratemaking written into the law,
and be signed by the President.

read."

Why Industry Wants

gas

the

bill

voters will not take the time to

even

This

the

into

industry has lost the exemption
it wanted of the regulation of

the

price of a commodity, the
question arises as to why the
industry still wants the Harris

convert

would
the

total

reverse

the
of

bill
what

the

Congress
cannot

"liberal"
or

abide

the
the

element

I)

(Part

munity

—

of

Bureau

Economic

and

Business

Com¬

Steel

and

Coal

European

Re¬

search, University of Maryland,
College Park, Md.
Fifty

Years

Construction

porated,

2

(paper).

Engineering

of

—

chure—Ebasco

York

industry wants.

For

the

and

Historical bro

Incor¬

Services,

Rector

Street, New

4, N. Y. (paper).

in

bureaucracy
gas
and oil

TRADING MARKETS
Fashion Park

Mills

W. L. Maxson Co.

Morgan Engineering
National Co.

Carl Marks

Riverside

&

FOREIGN

SECURITIES

50 BROAD STREET

TEL:

HANOVER 2-0050

;V"
amiHrititti/iT^iiiAri

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

LERNER 4 CO.
Investment Securities

10 Post Office Square,
Telephone

a

facility, then it
regulatory dock and must make

•

7" \1
i. i...

i

I.d

Cement

Ho. Inc.

or

gas

physical
comes to
the

add

Mr.

Fail

got

they
purchase from independent gas
producers. Whenever a pipeline
seeks to raise the price of its
price for

and

personal trust de¬

paradoxically, that
industry can hope for

amendments which in

than

of the

1948.

an

provide that the pipelines
they are paying no

market

a

has

He

Assistant Secretary

bank since

Indian Head

show

more

He is

graduate of Williams College and

best

exemption but in committee and

in

statute,

a

bank

heads its tax department.

no

Actually the bill started out

court is interpreting the
of

Assistant Trust Officer.

an

Mr. Dow,
gan

as

rate structure of
exploration and

the

costs

does

wellhead prices of
gas from regulation,
but it is
ease to
assert the simple, con¬
trary contention, and it takes
a
couple of hours of technical
argument to explain the facts,
arguments
which millions of
or

G.

Leroy

drilling dry holes.

NOT exempt

hear

Sidney

G.

car

allow

would

It

regulation by the FPC..

Federal

a

Assistant

as

industry

street

•

when

ap¬

might,

the

Natural

Gas Act.

Ordinarily,

Lindsay

price of natural gas from

opposition

the

were

as

field

the

Assistant

1949.

compensation for and writ¬

the

privately:
"I

profit

decaying

the

sure

key figure explained it

one

limited

a

of course, treat the gas

to

de¬

factually accurate attitude.

and

As

plant investment and
at the point of

prices

gas

production which regulate some
limited
return,
like the
6%
common
in
utility regulatory
bodies.
I

riding it

are

good

as

so

It

still

avoid

down into

has

of why

explanation

The

gas
industry
the strict utility

concept of price-fixing, or one
which permits the FPC to go

departed from its avowed pur¬
pose.

or

the

that

would

is

Federal regu¬

In the

in

market"

"fair

only the
"fair field"

enforced

price,

amendments and

lation.
the

bill

as

Mr.

tfre

if

that

assumed

is

It

production of

to exempt the

one

layman's eye.

the

Commission

The spec¬

the

of

objective

price provided.

meets

which

to be

appears

type of regulation

Here it
is a question of technical lan¬
guage more than of something

of field

spite the fact that it DOES pro¬

For

is be¬

explained,

is

of the

cause

De¬

bill.

gas

it

This,

costs.

gas

Phillips

natural

in

curiosity

apparently eunuchal

its

in

form.

another

in

ushers

then

This

Since

rent

bill

showing that it is paying not
than a fair market price.

signed to "exempt from regula¬
tion" than it is to take a fair

Powerful Opponents

regulation

the

the
of

provided

was

price from

exempt the field

pass

when the Supreme Court of the

United

1955-56 version
forlorn attempt

Harris bill, the

Regulates Gas Prices

of

gathering,

which is the

in this specific case

V.

Norbert

day when
up?"

enough to see that grand and glorious
finally do a job without botching it

more

retail

the

of

twenty-sixth

one

the veto.

With

it is exactly

words,

an

Butler and
Assistant
Treasurers; John P. McGinnis and
E. Grant North, Jr., as Assistant
Secretaries; and James H. Brooks

something, Pumpernickel, do you think I'll live

me

you

the

by the State of New York.
eight cents of

other

Robert

the city gas

leaves only

in

Assistant

an

announced

Preston,

long

pipeline receives is regu¬
lated' by the FPC, and the $1.77
of the local distributor is regu¬

In

appointed

Vice-Presidents; Watson K. Blair,
Everett W. Cady, Jr., Lewis T.

the

ents

purposeful drive

Aware of the

A©

feet.

Admittedly the 28 cents which

an

Vice-President, is in the

was

Also

asserts that in New
today the retail price
consumer-of

distributor, $1.77.

it

pointments of Joseph P. Dow and

r

23 cents of this and

the

previously

Chittenden,

Vice-President

"Tell

Federal

of

He

$2.08 per one thousand
The pipeline gets

is

gas

City,

foreign department, spe¬
cializing in foreign exchange. * He
joined' Morgan's as a trainee in
1939 after graduation from Yale.

individual

the

to

to

Intent

Congress Affirmed

Mr.

other

the

P.

23

bank's

of the gas

on

J.

Henry C. Alex¬

Treasurer in 1948 and

that

York City

York

New

announced by

Assistant

the field price of
natural gas in the smallest part
of the cost.
For instance, the

lated

of

are

hundreds of millions of
more
to
heat
their
and factories and to cook

oil

hand,

That

One

today

of

Street,

of

Incorporated,

Co.

ander, Chairman.

if

that

It is the contention

regulate

gathering lines for later sale to
the interstate pipelines.

was

their food.

the

reputation of wanting to
the price at which
natural gas was sold locally at
the wellhead
as
it went into

Smallest Part

this bill is
passed, it will exempt gas prices
from regulation with the result
that consumers will be obliged
to

Vice-President

a

Morgan-&

"liberals"

The

Morgan & Co.

George H. Chittenden has been
elected

subject.

contending

cubic

by pipelines.

gas

;

J. P.

Wall

and

production and gathering; that
the regulation applied only to

;

Chittenden V. P. of

as

Local Cost Is

one

Congress

at

around

were

specifically

act

of

members

insisted

turn

utility by
another.

a

as

agency

Many

in

usually

is

distributor

gress

coincide with
views.]

own

high¬

second

the

is

this

So

light of this fight over natural
gas.
The Supreme Court by
judicial law-making construed
an application of a law contrary
to the expressed wish of Con¬

well as a majority of
regulatory body responsible

Gas
*

and may or may not

1950.

in

HUbbard 2-1990

Boston 9, Mass.
Teletype
BS 69