Full text of Commercial and Financial Chronicle : December 26, 1957, Vol. 186, No. 5702

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

Volume 186

Number 5702

r

New York

7, N. Y., Thursday, December 26, 1957

Price 50 Cents

a

Copy

EDITORIAL

State audi Municipal Bonds

It is

quite possible that the President will find
the task of holding on to such limited fiscal
prudence as has been achieved about the toughest
that he will face
during the coming year. The
Chief Executive

himself

is

on

Improvement in the bond market and attempt? to broaden
tax-exempts are two of several principal
matters covered by Mr. Wendt in
discussing the higher
price outlook in the immediate future. Toll road bonds'

large increase in defense expen¬
ditures must be offset by curtailment of outlays
elsewhere. That long-time champion of fiscal
soundess„ Senator Harry F. Byrd, has made it
equally clear that he regards such adjustments
as
absolutely essential. There have been others,
of course, who have given at least lip service to
the need of limiting total Federal outlays and
of avoiding further
large increases in the na¬

for those bonds to reappear in any
In contrast to toll road bonds, the

of

revenue

In

a

it

only wish there were more of these cham¬
pions of good sense in national finances, and that
all of them were as earnest as Senator Byrd has
long shown himself to be. We shall have need
level

heads

as

can

be

found

and

year's
bond

building up
the early future,
would like

In November

of

Russia

be the more

for the period.

year ago,

the

for

the politicians, particu¬

month

which look attractive

the

matter

of

armament.

*An

Continued

on

page

SECURITIES

DEALERS

securities
tial

are

elections

scheduled

NOW

George

B.

The growth of the missile industry
about $21 million in 1951 to

Wendt

a

undertakings in

Continued
address

Hutner before
Security Analysts, Dec. 4, 1957.
♦An

by

Dr.

REGISTRATION—Underwriters, dealers and investors in corporate
complete picture of Issues now registered with the SEC and poten¬
our "Securities in Registration" Section, starting on page 30.

the

New

on

page

22

York Society of

State, Municipal
and

U. S. Government,

Municipal

STATE

Public Housing Agency

MUNICIPAL

and

Securities
telephone:

Hutner

$2.5 billion in 1958 (government's fiscal years) has pro¬
duced an impact on the economy which cannot be ig¬
nored.
With prospects that this figure will increase

in

Stale and

Dr. Simeon

from

address

IN

afforded

investments.

last

were

by Mr. Wendt before the Conference of Bank Corre¬
spondents, The First National Bank of Chicago, Dec. 2-3, 1957.

20

as

~

postwar

slightly under a billion
dollars and latest reports indicate
approximately 90% received the go-sign. The lesser
amount of bonds placed on the ballots is attributable to
roads and veterans' aid, which constituted $1.4 billion
Continued on page 25

too.many of these who are inclined

'I

the

industry and try to indicate
doing what appear to me to
important jobs and the
ones that promise most growth.
In
order to provide something more in
the way of background data, I have
compiled a list of contractors which
appears as Table II. Of these I shall
have time to discuss only a few

total

record

'

i

•

Rocketry Growth Ahead

Bond

are

in

of

years.

larly in the Democratic party, who would like
to make as much capital as they can from the
alleged failure of the Administration to keep
abreast

all-time

an

■

who is

municipal
bond approvals exceeded $2.5 billion,
a

'

1

■

COPIES

OP

OUR

REPORT

Bonds and Notes

f INVEST!VG IN THE

BONDS

HAnover 2-3700

DRUG INDUSTRY"

CHEMICAL
CORN EXCHANGE

foreign
Available

letter

ON

Burnham
MEMBERS NEW

30 BROAD StTi,

N.l

and

15 BROAD STREET, NEW

OF NEW YORK

Company

YORK 5, N.Y.

•

D1 4-1400

120 BROADWAY, NEW YORK
Bond

Dept. Teletype: NY 1-708

TELETYPE NY 1-W03

CABLE: COBUHNHAM

Net
To

State, Municipal,

T.L.WATSON &CO.
ESTABLISHED 1832

County and

Active

Dealers,

Markets

American

BONDS & STOCKS

YOREf: 4, N. Y.

DIRECT WIRES TO MONTREAL AND TORONTO

.

Goodbody

&

BRIDGEPORT

•

PERTH AMBOY

115 BROADWAY
NEW YORK

.

For

California

Municipals

CANADIAN' DEPARTMENT

STREET

BANK

coast

Exchanges

Co.

VIEMBERS NEW YORK STOCK EXCHANGE




to

Maintained

Teletype NY 1-2270

NEW

company

from coast

CANADIAN

Canadian

Stock Exchange

25 BROAD

goutfueedt

offices

Commission Orders Executed On All

New York Stock Exchange

District Bond*

first

34

Chase Manhattan

5

Banks and Brokers

SECURITIES

Members

Harris, Upham &C2
Members New York Stock Exchange

EXCHANGES

YORK AND AMERICAN STOCK

REQUEST

the

THE FIRST NATIONAL CITY BANK

BANK
bond department

BOND DEPARTMENT

ARE NOW AVAILABLE

Request

on

,

is review the broad divisions

paper

that

astronomical

that

■

■

,

Revenue

25%

of

daily, increased 4%

from several quarters.

There ard all

In

total.

for

City

a

Any industry that can grow by 10,000% in seven years
is bound to attract the, attention of analysts and investors.
Though the industry is still small, the number of firms
participating in it in some way is
enormous. All that I can do in this

were
many
king - sized
flotations
ranging from $5,000,000 to $85,000,000
each. The number of flotations, av¬
eraging about 23
separate
issues

once

to glorify huge deficits as "bold"
programs
moving in defiance of what they would like to
have us believe is moldy tradition. Any notion
of prudent spending and resolute avoidance of
additional debt at this time is in serious danger

all, there

ten-month
accounted

'

■

financing exceeding $5,600
20% above the preceding

amount.

more

First of

similar paper on "Municipal Bonds" made a year
was stated that a substantial amount of tax-

million,

marshalled against the forces that are
for loose fiscal management in
and indeed against those who

significant amount.

exempt bond issues could be expected during 1957. Fig¬
ures compiled for the ten months
ending Oct. 31 disclose
a
record volume of long-term mu¬

nicipal

may

burgeoning industry which investors should consider in
their investment decisions. With this in mind, Dr. Hntner
lists and reviews contractors, many of whom are not to
be identified solely with aircraft or missile industry, who
are engaged in rocketry, anti-missile missiles, electronic
guidance systems, high energy fuels, intermediate chemicals, etc. Says opportunities for investing in space age
permits any degree of risk one wishes to assume*

considerable share of
municipal financing.

We

such

ahead in

growing importance
general in past decade indicate to

bonds in

know there is

good -deal, of growth
the missile and ancillary field, one may not

one

know the ramifications and characteristics of firms in this

the author that this will comprise a

ago,

all

While

situation lead the Chicago banker to conclude that, until
conditions change for the better, there is little likelihood

tional debt.

of

Pulsifcr & Hutner, Investment Managers, New York

the market for

belief that any

By DR. SIMEON HUTNER*

.

Vice-President, The First National Bank of Chicago

with the

record

Missile-Rocket Indnstiy

By GEORGE WENDT*

1 NORTH LA SALLE ST.
; CHICAGO

Domehon Securities
Grporatioti
40 Exchange Place,

Teletype NY 1-702-3

New York 5, N.Y.
WHItefcall 4-8101

MUNICIPAL BOND
DEPARTMENT

Hmtk of Atttmea
nationalising? association
300 Montgomery St., San

Francisco, €*&£.

The Commercial and Financial Chrovi'h:

(2310)

2

The

Dealers only

For Banks. Brokers.

For Year-End Service

participate and give their

Try "HANSEATIC"
We

fully equipped to

are

for favoring

reasons

(The articles contained in this forum

pro¬

they to be regarded,

•re

vide substantial service to banks,

switch

and

loss

tax

EDWARD

trans¬

maintains

Further,

issues.

400

over

nationwide

complete facilities and broad con¬
tacts assure

reliable OTC
Why not give

prompt,

service—always.
us a call?

New York Hanseatic

no

best"

Stock

American

Exchange

the Board

120 Broadway, New York 5
Teletype NY 1-40

WOrth 4-2300
BOSTON

CHICAGO

•

PHILADELPHIA

knows

Book

RIGHTS

SCRIP

&

Since 1917

tfcpONNEII &fO.
Members

New York Stock

Exchange

American

Exchange

Stock

120 BROADWAY,

NEW YORK 5

100

•growth

all

of

stocks',"

is

*^fy

$2,000 in equity at the
acquisition
has

simple

reinvestment

an<*

Trading Interest In

GStated'

brieflv

Basseti

Furniture

Industries
'

l

and finances them

more

properties
p opeiues

STRADER and COMPANY, Inc.
Lynchburg, Va.
LD 39

TWXLY77

property

in

10%

was

against

Mortgage

2%

at

remaining 90%

is

GW's

interest

REA'

for

the

The properties

are

ings, afterdividends on the preferreds, are ploughed back. As a
courtesy, common stockholders are
paid stock dividends.

IN JAPAN

4% in stock

years,

for «ur Monthly Stock
Digest, and our other reports
that give you a pretty clear
picture of the Japanese
economy as a whole,

Write

a

Nomura Securities Co., Ltd.
61 Broadway, New York 6, N. Y.
Telephone: BOwling Green 9-0187
This

is not

orders

for

an

offer

any

or

solicitation for

particular securities

paid twice
but, since 1954, the vogue

year;

6%

was

annually.

demand
there is
dend

l

For several

hasi been for 3% twice
or

the

a

For

hard

year

.

.

.

those who

feel

ready bid

a

on

coin

of

the divi-

.

been

.

written

in

which

the

.

5, N. Y.

ana¬

lysts take great pains to point out
and

capital

So~ fai^however^

a

regenera-

most

.

characteristics

—

Refined

—

of

com-

"growth"
In

.

mand.

plans

Raw

the

to

Liquid

So

of
on

re-

de-

often, like the best laid
mice

-

side risk.

of

management to make

ket; btit

there

now

Affiliate

preferred and
and

ers

the

panyj

stockholdis

r

/

-its

"

you find it! In
10 years, 1947 through
General Waterworks'
rev-

increased

?igbt out, of, Jbe
increased.
not

nrp

te(J

f0

Revenues

.

figures

nv~iiahip

be

about

low

v 1
rates

inc.;
37 Wall Street, New York 5, N.

half

gas

for

hut

1957

arP

"

1

!

Dealers

Investment Securities

move

area.

Canadian and Domestic

Reynolds Metals

giants, iteynoias meiais

PvJ

c°ement and steclrompm/
fesfamouTto aboSf 80% Tils
pm er

to

$9.o. million in
1956 from/"if Q 1million in 1947—an
$2.8 tiinne* lirViilo

total sales volume.
Its excellent
vnnf
of 3.3 times; while 1 net
comoetitive nosition in relation to
$1>2 milli0n iii 1956 from other '
—P energy sources, not only as$300,000 in 1947—or four times:* slires a great
growth potential-for'
^'T"Y*
Sures a
potential ier
increase
innvooco

rose

Underwriters—Distributors

—

for., industries.- to

aluminum eiants

Y.

non-utility

into the company's service

' more-of-the-same.

rose

Burns Bros. & Denton

Eastern

and

derives
earnings;• from

traction

in

and,

.

com-

years, net has v/industrial sales, primarily to the

The

vpt

.

N. Y. 6 COrtlandt 7-5680

nat¬

gas

supposedly
the lowest in the country for'a
comparable gas utility •— are its
best selling point and the main at

Growth is where
1955

Louisiana

which

operations.:/.^,

each 0;£

enue

its

of

ancL as of last June, 837,000 shares
>

-

Texas,

Capitalization includes $30 million
debt; $7 million of preferred;
common.

Investment Bankers

&

111 Broadway,

'population
of
serving,
one
million in Arkansas,

Northern

better.

0f

0f

-tegrated
ural

about

common

.'•/

w

./completely inBruno Kavaler

mar-

situation

Inc.

of'-,

these qualifi-*
cations. It is a

about 2,400

are

'

•

Tokyo, Japan
Brokers

Gas meets

ana

:

Yamaichi Securities Co., Ltd.

:

kansas Louisi-

man-

a

write

New/York,

I believe Ar¬

unlike
is

...

information

Securities Company

relatively

i>i'

:

'

.

.•

•

.1

.

.

•

Since 1932

.

Specialists in''

to

.

Constant

stock

dividends

adiwftment

of

the

require

+hP future

but makes it

also rela-

VIRGINIA—WEST VIRGINIA
1

?uluie\ DUtmajses it aiso rem-

I-

share

ner

adjustment 01 tne

pei-snai.e tively

for

easier

the-

NORTH and

earnilIgs
?rnVe-aJftJ compari-^Aggressive management to obtain
!!!;
i?°u
0
shares in higher rates. Rates for large inJ94J. w°hjd hold .. .assuming re- dustrial, customers in -i Arkansas
!oe J1
a}
J1 iS? ?.' ' ' were raised in April 1955 from 14p
at

th^end
^ParPsf frppS to
ptr-shara eaimings af ter'
of

1Q57

,55

^nts in^

by JnY

fL ^ther customers will also

^ tdhigher: rates-

to

1958*

pay
in accordance with

^arninw^nclndt
Jmdmgs of tbe .Aransas
^ofitJ from the sale^woljeSes ?
|^|tferg<'Tndicate ^thlt^oSeratinfi !ncr+eases sbould add ab"ut 40<> af"
34

CAROLINA
MUNICIPAL

1947

BONDS

F. W.-

l8c per M€F and wiU again be

by

SOUTH

company s

CRAIGIE 8 CO.
-I1.*

RICHMOND,-VIRGINIA'

Bell System
•

Teletype: RH 83 & 84

Telephone Milton 3-2861

to from In 0" ?er da^S t0 common share earn1 sCe
nraHH; fram-ingS*+ Ihe c?m?any may also .bc
propertsf sale wmaveiage oi?t at ana before ; long,-if it ^should;: be
will avenge out
gian^fd a
i liicrease m Loinsip^ „y saieA
at
run

a

.

teerefoie/have3"'

potential, of $2

share.

■fH?^f.f!?1;!!v;!^;it.!.P.resent court
litigation in that state.

Growth

most

is

in

book

and

1947 had a book value of $347—as
compared to a 1957 book of $1,970.
The 1947 market is not well de-

fined, but might reasonably be set

a

gas
sas

by

law passed by the Arkan-

a

state legislature in March 1957.

The passage of
a

tremendous

company

for

the

in expanding its explor-

bigb figure)- Today, these shares ation activities

have a market with stock divi- threefold

this law has been
stimulant

in 1957

more

than

1956, budgeting as
^nds °* $2,462.50 — almost five much as $5,000,000 for this pur^mes their cost of 11 years back. pose. The results speak for themIn conclusion
GENERAL selves.
Whereas reserves as of
.

...

like

1' i9J?6 were 5sti?iatJe<3„at 4m0

should "Just

lion^barrels^fquMs reserves,^'one

WATERWORKS' growth

and^men. money "Old Man River^.
gangs

.,.

over

.

.

.

agley." keep rolling along." The analogy year
later, according to manageResearch is always expensive — is
an apt one
for it depends ment estimate, amounted to 800
and not always
successful; while on the flow of water.
As our" billion CF gas and 22 million barnew

methods are,

placed by

newer

"fusion"




good

or

Yamaichi

giving.

owner

small down¬

tied

It used to be dif-

these three

has

"fission"
DIgby 4-2727

a

with

13%

get enough stock out of

.

Exports—Imports—Futures

Call

public

its

24.00

or

^ofthe at.$500 for 100 shares (if anything,

namely, speculative risk.
general, "growth" depends oil
search, new methods or latest
.

spent

SUGAR

ties of

current

quali-,

appreciation

Waterworks

however,

.

erudite

authors fail to note the most

NEW YORK

ficult

by
the

including

.

.

stocks

mon

STREET

■

a

have

academicians

tion

WALL

For

de-

tensive

-

"

The most distinguishing feature
conspicuous,of Ark La Gas is the fact that it
market is permitted, to .charge the "fair
Harvard Business Review
defining the attributes of "Growth" va*ue- The holder Cf 100 shares in field price" .for company owned

Articles

preciation

99

»Vwith /the

•

a

distribution.

distinction between expansion, ap¬

LAMB0RN & CO., Inc.

STOCKS

growth

'

possibilities,

most "Growth" stocks

agement owned.

one

eauitv

35-vear

a

beoe

of

operated and improved. There is
an excellent cash throw off. Earn-

Opportunities Unlimited

average

highlight another difference,

General

indicated

instance

which

cer¬

bought
oougru

were
weie

Borrowing

extreme

HI
ui

Report

the extent to which

low book.
the

•llt-lll
ueni

in

measures

in

pioi^ities

evidence, an
the Annual

$4,78o,000
tain
id

To

as

»-i"S and
p^slble-._?arn!n?s. ^1:e
retained

Life Insurance Co. of Va.
Commonwealth Natural Gas :

Water-

fi waJ5r

;•

buys properties at less than

book value
.

General

11? Dnetly'

works

above.

"growth" stock.

baeLJ

changed to an equity today of $»
million. The growth formula has

American Furniture

a

what

A deficit of

been

showing

/'utility,

12% Bid

offices

JAPANESE

18.75

__

—•

branch

/

30.00 and $50.00

__

Price

our

City

This table clearly shows that Genelai Waterworks is underpriced as

so-called

the

TEL. REctor 2-781S

of

-

Direct wires to

security I like best'should

.

as

Mr.
Butcher said. The record will justify this statement, as far as the
past is concerned. The company
buys, operates and sells water and
telephone properties. Since Butcher's group took over the original
22 properties from the Arkansas
Power & Light Company, in 1942,
GW's assets have risen to $70 mil-

time

The

14.50

H. Bradford

E.

stock will deservedly in-

of

between

.

Exchange1

corn^jne the dynamic characteristics
ofi an - industrial
company

Municipalities
Value

MoffHe, Ala.
*

r;.

,

NY 1-1557

New Orleans, La.- Birmingham, Ala.

;'/■

Arkansas Louisiana Gas

us-

23.00

-

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

-

faster, percentagewise, than

out

to

Recent

Corporation

95

New York

i

$9.50

-

-

Value--

somewhere

Earnings

General

common

Base

Sale

believe

crease

Value

Rate

Waterworks

Specialists in

Stock

/!*

Per Share

Original Cost Value„.„

company.

that

"

:

deal about the

"I

New .York

'

great

a

,

9

Members New York Stock Exchange
- Members American Stock Exchange

HAnover 2-0700

^

,

Analyst!"
Spingarn, Heine and Co.

Members

"bargain-basement"

a

Daiim1

wTEINER. HOUSE ft vO.

Co.,
v.

KAVALER

basis in both respects.
Let me
quote from Mr. Butcher's table.

it

add, he also

FRANCISCO

SAN

•

Wires to Principal Cities

Private

and,
might be
pardonable to

on

An-

&

Securities

assets,

sells

Heine

;

on®. that sells at a prohibirelationship toboth .earnings
Again, this IS NOT so
with General Waterworks, which

f

Securities

Spingarn,

BRUNO

".ally
and

is
o

growth stock is

a

Co.—

.

five

Mr.

Chairman

Kavaler,

alyst,

Bought—Sold—Quoted

_

Gas

1

New York City (Page 2)*;

The Academicians also neglected

to note that

WATER-

3Iember

Associate

Bruno

doubt about it,

—

Butcher

..

Louislana

.

when in-hand with what Mr. Butcher
Howard
Butcher, III, addressed refers t0 as that very stable and
the new York Security Analysts non-speculative demand foi
the
last June he was talking about "the
e essential for lite and living
anywhere"—WATER.
security HE
There is

WORKS.

1020

.

...

Corp.

G ENERAL

Established

.

.

Waterworks, how¬
ever
is not speculative. It is
like "Love and Marriage" a "Many
Splendored Thing" that goes hand-

Boston, Mass.
General Waterworks

liked

Corporation

Dept., F. L. Putnam &
Co., Inc., Boston, Mass. (Page 2)
to

promoters
in the

.

Louisiana Securities

search

hard

of General

case

Members Boston Stock Exchange

our

private wire system,

is

by as titanium
will testify.
Growth

F. L. Putnam

trading department
primary markets in

Our large

demand

come

Manager, Research Department
& Company, Inc.

actions.

Latent

ers.

Alabama &

General Waterworks Corp. — Ed¬
ward H. Bradford, Manager, Re¬

nor

offer to sell the securities discussed.)

as an

BRADFORD

H.

be,

to

'*

Week's

Participants and

Their Selections

particular security.

a

intended

not

are

brokers and dealers in their year-

end

This
Forum

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

Blocks

-.ion

Security I Like Best

Thursday, December 26,1957

,

to

Atlas

Corp.

frequently,
methods

been

the

and

...

replaced

embarassment
other

reas

by
of

"growth"

holders of corporate gieger count-

.

says:

getting harder and

pensive

to obtain

demanding

more

and

of it

Wa-

more ex*

people
per

are

capita

every year and there will be more

"capitas" next

Quotation Services
for 43 Years

.

friend Howard Butcher
ter is

Over-the-Counter

year.

.

/

'

••

rels liquids. At 10p per MCF applicable because of the "fair field

National Quotation Bureaa
Incorporated

Price" and $1 per barrel reserves
would amount to more than $20
share-

Per

"

">

;

Reserves

Continued

should

in-

Established 1913

46 Front Street
CHICAGO

on

page

9

'

New York 4,
SAN

j

H.%.

PRANCISOO

Volume

Number 5702

186

.

.

.

The Commercial and Financial Chronicle

(2811)

Economic

Instability: Two
Areas of Possible Dangers
By DR. FAYETTE B

Assistant
,

The
V

what

will need for

we

their

general

—Simeon Hutner

i

acceptance—

_:y

two

important areas
of possible instability which ought

managements

to be of

take

more

men, commercial

great

to business

concern

bankers, invest¬
ment

better

now

in

go

being

used,

is

have

this

and

on

to

on

will

day

4

to

vigorous

Shaw

B.

5

Investment-Looming Policies

:

.____,

still

lay

unbal anced

enlargements.

situations. These

out

on

paper

are not the only
problems constantly besetting our
economy, but they are vital. They

have gone too far.

revolve

onto

ment

about

by

increases

productivity

labor contracts

the

for

LISBON URANIUM
6

9

i

—Albert L. Nickerson.

10

____

Europe and Atoms for Power—Max Kohnstamm.

i__

■

12

Business and Real Estate Trends—Arthur
M. Weimer

_

J.F.Reilly&Co.,Inc.
Members Salt Lake City Stock Exch,
Spokane Stock Exchange

15

To be

a

in

Mistakes

have,

most

Products

—Roger W. Babson

the

policy

this,

in

risks

of

(Editorial)..

13

40

Coming Events in the Investment Field—
Dealer-Broker

Investment

Recommendations

8

People often speak of overpro¬

mism too far and to allow himself

duction.

to

overproduction

be

blinded

to

underlying

changes which demand alteration
of

plans.

A

business

man

This

accurate.

$20,000
duction,

com¬

monly makes two mistakes, if we
may
judge by past experience.
First, he overestimates the dura¬
tion and permanence of the de¬

is

Two

inaccurate.

homes

many

Mutual

represent overpro¬
whereas
if
they were
at

the

vite

prosperity,

it

time

a

difficult

is

visualize any other situation.
Of
course there will be a downturn

sell.

sometime, but not right

price to

sometime
nor

to

never

even

be

•overestimates

total

seems

close.
the

enjoy.

had

arrive,
Second, he
the

firm

his

of

will

some

than

individual

their

expected.

firms

do

managements
the

In

flowing

tides of business, some go farther
and faster than
others.
But as

prosperity rises towards the peak,
some

firms

find

that

consumers

resist further price increases, and

| & Mackie, inc.

14

I

IhA 2-0270

18

40

If

he,

of

were

car

a

to

on

5

19

Governments—

f

f

'I

-

"

•
.

Chicago

'

"

Our Reporter's Report.—

N.Y.|

8

Teletype NY 1-1825 & 1-4844

Direct WiresLos Angeles
to
Dallas

will not

reduce

Public

the

Utility

!l

Securities

17

$3,(i00, he

Railroad

Securities

—

—

Securities Now in Registration

into.

Prospective

Security

27

Lithium Corp.

30

Offerings

34

more

that

Epsco Inc.

Securities Salesman's Corner.
The Market.;.

and You—By

27

Wallace Streete

United Western Minerals

16

them to charge that price or suffer

loss, perhaps bankruptcy. But that
precisely the problem.
They

The

have

drawn

The State of Trade and Industry

labor

and

Security I Like Best

—

2

Vis

they find that at the going prices,
buyers are reluctant. Meanwhile,

Exchange PI.,

Philadelphia

5

1

They produce at a price
than people want to buy
price, and'then-speak of
overproduction,
They have in¬
curred many costs which compel
far

at

[___

Funds

Our Reporter

could sell more,
at $2,400, still more, and at $2,000,
he might sell all—and go through
the wringer. But this situation is
precisely what many, many men
fall

>

Now

"better

to

share

market which

and

now,

I Singer, Bean

38

Observations—A. Wilfred May.——

bankruptcy too. An automo¬
find that at $3,600

bile dealer may
a certain model

to

17

^

News About Banks and Bankers

$10,000, there would
enough of them.. To lower
price to $10,000 would no

goods and for services.

In

Bargeron__

be

not

1

at

doubt involve many bankruptcies,
but failure to lower prices will in¬

of

of the News—Carlisle

Indications of Current Business
Activity

may

available

Washington Ahead

But

at going prices isy"

mand of consumers and producers
for
consumers'
and
producers'

r

From

Greetings!

20

___.

What Is Overproduction?

neurship. But when this is said,
it is possible to carry this opti¬

Reason's

4

.____

Einzig: "Achieving Retail Price Cuts When Raw Materials
Costs Go Down"

entrepre-

Teletype: SU 155

Cover

Business Man's Bookshelf

asked.

Exchange PL, Salt Lake City

DA vis 8-8786

that,

because of

the

19

Bank and Insurance Stocks

producing more goods than peo¬
ple want to buy at prices that are

undertake

See It

HEnderson 4-8504

Teletype: JCY 1160

39

other realm, high interest
The actual trouble lies in

rates.

never

___:

Regular Features
As We

Exchange PL, Jersey City

Speculative-Growth Stocks

come

chances of failure and to hesitate

them, he could

1

16

DIgby 4-4970

stub¬

deluges only
by reluctant buy¬
possible explanation

government
or

other
qualities, optimism. If he stopped
too long to ponder all possible
among

Sap"—Spruille Braden__

Getting Conservative Funds Into

Every
is given except the right one. The
blame is laid variously on inade¬
quate credit, Federal Reserve pol¬
icy, lack of dynamic salesmanship,

successful business man,

must

one

"Uncle Sugar" Now "Uncle

the

the markets in

ers.

cause.

Two Business

they-

STATES

NATURAL GAS

An American Oil Man Looks at Oil
Here and Abroad

i

3

8

further

comes

the

even

WHitehall 4-6551

AQUAFILTER

Safety and Profit

Outlook for the Chemical
Industry—Donald K. Ballman

ad

to be left there

escalator

clauses

pay

when

STREET, NEW YORK

HAILE MINES

—George C. Astarita

bornly optimistic realize that they

capital invest¬
firms and the

business

automatic
and

the

time

and

even

Then

YEAR!

LITHIUM CORP.

show

need,

expanding,

rections of

NEW

The Business Outlook and Your
Stock Plans

and to provide for those

go,, on

PEACEFUL

6

—Sigurd R. Wendin

put, and saturation of the market
at
present prices appears,
they

cor-

WALL

Telephone:

.

Fayette

more

capital

resources

into

Continued

this

on

of

Hydra Power*
4

pro-

page

Washington

21

and

You

——

San Juan Racing

40

—

Common & V. T. C.
Published

Twice

1

Weekly

Drapers'

land

The

For many years we

dd[[[ddm

have

IllLrLllllLU OlUOIlO

specialized in

ctftplfc

25

BROAD

U. S.

Reg.
WILLIAM

Members New York Stock Exchange

COMMERCIAL

FINANCIAL

\

.

Spencer Trask & Co,

B.

COMPANY,

E,

C.

Eng¬

Smith.

Vitro Corp.

Copyright 1957 by William B. Dana
Company
Reentered

/

,

Publishers

as

second-class

matter Febru¬

WILLIAM

DANA SLIBERT, President

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

S.
of

Albany

•

•

Boston

Nashville




•

•

Chicaf •

Schenectady

.

•

•

Glens Falls

Worcester

on

request

Union, $65.00 per year, in
Canada,
$68.00
per
year,
Countries, $72.00 per year.

Dominion
Other

Thursday, December 26, 1957
Every

Thursday

(general

news

and

of

and

Other

Chicago

3,

111.

*35

8outh

(Telephone

Bank

$40.00

and
per

La

STate

Salle

INCORPORATED

Note—On

St

2-0613);

(Foreign

account

in New

of

the

Monthly
Postage extra.)
lr

exchange, remittances for for¬
eign subscriptions and ad"ertlsements must
made

York

funds.

BROADWAY, NEW YORK 6

Teletype NY 1-4040 & 4041

—

fluctuations

of

be

R°c>rd

39

WHitehall 3-3960

Publications

Quotation

year.

the rate

city news, etc.).

Offices.

Other

ad¬

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

W!? V. FRANKEL & CO.

Pan-American
.

vertising

I

Prospectus

Rates

:

SEIBEBT, Editor it Publisher

"*

TELETYPE NY 1-5

*

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

Subscription

REctor 2-9570 to 9576
HERBERT D.
.

London,

&

and

CHRONICLE
Patent Office

DANA

Gardens,

Edwards

c/o

25 Park Place, New York 7, N. Y.

ST., NEW YORK 4, N. Y.

TELEPHONE IIAnover 2-4300

8

ex¬

nation will

nation

99

slow- V

be

EVERYONE

3

What Lies Ahead for Business and
Automoblie Industry?
—L. L. Colbert

needs, business men must ex¬
pand, expand, and expand.
Even
when increased productive capac¬
ity is bringing forth greater out¬

make

to

the

nauseam,

opin¬

some

an

f*

PEACEFUL HAPPY,

AND

Cover

____

;

hesitations, but by 1960

and

on

what

ion, the capi¬
talistic system
will

of

i— Fayette B. Shaw__

need.. . -.
and statisticians, executives, trade
association
officials, and others

judg¬
than

writer's

'

Canadian Business Outlook Now and Years
Ahead
i
—A. C. Ashforth__«l_

expansion

needs

|i

PEACEFUL HEALTHY,

American Express Company: Itas
Dollars, Will Travel
-—Ira U. Cobleigh
:

undertakenv

there may

course,

1970. the

or

use

ment

of

the

of

downs and

to

Unless all

be.

concerned

have

programs
care

Of

than

seem

V_

__

i

Economic Instability: Two Areas of Possible
Dangers
<

sure

and.labor

they

•

PROSPEROUS

panding economy, which they are
will continue to expand. -

bankers,

leaders

A

—George B. Wendt__

similarly, finds labor is irresponsible in
.demanding automatic escalator>and productivity pay clauses.
Higher costs, he warns, may not mean higher prices but,
instead, greater cutbacks and reduced employment.
are

HERE'S WISHING

our

growing-expanding 1960-70
criticized by professor-writer Shaw in scrutinizing/'

AOO COMPANY

Cover

__

Broadening the Market for State and Municipal Bonds

for the 1960's and,

There

_

_

instability. Dr. Shaw questions capitaL investment by business ;
at a time of high costs and excess
capacity to enlarge output-

.

Page

mmmm

of

predictions—and

iicHTinsTtita

*. S.

.1

.

Investment Opportunities in Missile-Rocket
Industry

/

business and labor operative mistakes which create economic

-

.

t

,

economy are

:

INDEX

'

,

Articles and News

Economies, University of Illinois
Chicago Undergraduate Division
'

plethoric

to

as

Professor

SI1AW

'.v

♦

.

3

Direct

PHILADELPHIA

Wires to

SALT LAKE CITY

The Commercial and Financial Chronicle

(2812)

4

American Express Company
—Has Dollars, Will Travel
By DR. IRA U.

on

at
This is surely an
of the

excellent time
for talk about travel,

year

of folks

what with millions

com¬

range

ing home from faraway places for

whole

risen

(Time payments up to 24
are offered.)
You can ar¬

Canal.
months

trip for a
corporation

convention

a

organization
charter

or

fleet

a

—even

planes. There are packaged tours
to suit every purse and purpose—

thousands

to

Copenhagen,
C

the

i b

a r

-

Pago
t

i

n

1 y

no

is

bet¬

a

known

ter

all

of

U.

Cobleigh

negotiable, theft and loss proof,
accepted everywhere, and
sold through its 405 offices and
71,000
sales
outlets
in
United
States and around the world. Here

remarkable

business for 107 years

unbroken

an

and boast¬
of

record

divi¬

dends

paid to stockholders in each
of the past 86 years.
While you could

easily describe

American

Express
as
a
huge
travel agency company,
the best way to classify it is as a
service organization, and the larg¬

banking

est

or

in the world at that. First

one

is

there

the

sale

of

above

noted.

gross

commission

These

(This charge was
in April 1956.)

the
are

cheques
sold

profit

at

a

of

1%.
raised from %;%
Related to this

business is- the sale of money or¬
ders

through the facilities of
Union, Railway Express

Western
and

drug

many

chains

with

and

retail

store

branches* in

most

states.

Only the Post Office sells
more money orders than Ameri¬
can
Express. The company also
makes

able)

convenient

(and

profit¬

arrangements for the pay¬

ment of local

utility bills through

its money order agencies,

of the

in

many

larger cities.

Quite related to this business of
transfer

money

trol

of

is

Wells

its

stock

Fargo

storied in "western"

providing

now

import and export of
(with air freight increasing
rapidly) but preparation of the
shipping documents, forwarding of
receipts, insurance in transit and
customs
clearances.
Whether

an

con¬

Company,

cinemas, and
armored

car

package, a person or a
American Express can send

you're
peso,

iw'-■

.

This

much

pretty

the

covers

things American Express has been
doing; but new activities are in
the offing. Three months ago the
company
made a dramatic ad¬
vance in its travelers' cheque
is¬
suances. Now, in cooperation with
local banks, corporations can issue
cheques directly
to
their own
traveling personnel. This innova¬
tion
is
expected particularly. to
expand
business

the company's domestic
since, up to now, only

annual
U.
S.. expenditure for business
travel is running above $3 bil¬
lion.)
;
cheques.

ad¬
dition
to future profitability
at
American Express is the forma¬
tion, last month, of Hertz Ameri¬
can Express International, Ltd. in
Perhaps

the most exciting

association
tion.

with

(The

Hertz

banking

abroad, American Express pro¬
vides, through many offices, the
commercial

a

specializes
by cable

either

or

in

the

bank,
transfer,

draft, of

per¬

corporate funds all

over

or

the

globe. Domestically, through a
subsidiary, American Express

Field

Warehousing

Corporation,

The company operates warehouses
36 states for the storage of

in

property.

Goods

stored

thus

en¬

able

companies to borrow con¬
veniently on inventory main¬
tained in their

own

possession.

Next to travelers'

cheques, how¬
American Express is prob¬
ably best known for its vast travel
agency service. Whether you seek
a
bus ticket, a boat ride .or a
world cruise, this fabulous com¬
pany can handle it—individually
or
for hundreds
at a clip
(or
ever,

trip). Complete itineraries

are ar¬

ranged, including all transporta¬

actual

since

increased

1870,

in each

world at peace, and

a

increasing

which

travel

Super

lei¬

sure,

opulence,

super

highways, super liners and

Chie f

ble,

on

tury

of

Express

American

well

its way

to

appears

second cen¬

a

services

expanding

and

for $880,-

common

000, and obtaining options to pur¬
chase 75,000 additional shares (at
prices from 42% to 60%) during
the

next

four

years...

This

new

Hertz American Express Interna¬

-acquired

France

plus

in

cities

229

184

rangement is

ising

-rounds

out

former
in

This

extremely

an

both

the

travel

clients

to

rent

world

through

It
of

permitting

all

its

.

service

Express,
-

prom¬

partners.

American

cars

ar¬

over

own,

the

offices

abroad and the 900 Hertz agencies
in
the
United
States.
And, of

Company has been
formed with offices at 343 South
State

Street

continue

to

the

in¬

roster of I-Iertz
is

Virgil V. Harton OpensHOLLY HILL,

Fla. —Virgil V.

Harton is engaging in a securities
business from
offices at 999

Eighth Street.;

;

V

.

instantly
these

tions,

available

myriad

the

cash

monetary

American

for

transac¬

Express

has

a

huge treasury and total assets of
over

$700

million

High
over

20%

cash

items, with

liquidity

is

(at

12/31/56).

important;
the

is

so

kept in

balance

in¬

in

needs"

as

The

one

distribution

industry
the

influence likely to

soared

Edison
Last

electricity by the United States
highest level in history the past
reported.

power

week,

Institute

Electric

week's

of

the

to

perk up the country's economy.

production totaled 12,570,000,000 kilowatt
hours
and
broke
the
previous record established during the
week ended Jan. 19, 1957 when 12,556,000,000 kwh were generated.
A spokesman for the Institute said the higher output level
should hold during the Christmas season and added that consump¬
tion for the week ending last Saturday could top the previous
power

week's record.
The

winter

increased

weather

power

that

distribution

prompted

was

consumers

sparked by the icy
switch en electric

to

heating, the normally shorter winter days that boosted the demand
lighting and the Christmas season itself that traditionally
entails a higher demand for current to light Yuletide decora¬

for

it

tions,

the

a

that

electricity usage

12,315,000,000

unexpected power/demand
were

hit

with

a

cold

wave

get warm.
was

255.000,000 kilowatt hours

kwh generated in the prior week and
kwh produced in the like week

than the 12,220,000,000

more

year

One

states

Southern

electric heating to

turned to

the

reported.

further

was

from

came

ago.

The current employment

situation shows that unemployment

claims from newly

laid-off workers reached the highest level of
in the week ended Dec. 14, according to the Bureau of

the year

Employment Security.

Mirroring the nation's recent economic slowdown, the num¬
of new jobless pay appeals to the government climbed by
17,100 during the week to a total of 413,200. The figure stood at

264,600 in the corresponding period last year.
Insured unemployment, at the same time, rose by 154,800
during the week ended Dec. 7 to 1,876,700, the agency said. A
year earlier the figure read 1,161,800..
•
t
•It stated that 25 states reported larger volumes of new un¬

claims

cutbacks in

weather

on

and

attributed

the

increases

largely

to

apparel and food processing and the effects

construction

and other outdoor work.

•

New

York, which showed the sharpest rise of 11.200, also
noted lay-offs in primary and fabricated metals, machinery and

EVENTS
In

auto-parts industries.
Other states with large
Pennsylvania 4,300, New Jersey 3,600, Missouri

Field

Investment

2,800.
Jan. 17, 1958

(Baltimore, Md.)
Baltimore Security Traders As¬

sociation

annual

23rd

winter

dinner

Hotel.

the

mid¬

.

at

Southern

(Chicago, 111.)
Club of Chicago

Traders

Bond

annual Midwinter Dinner at the
Sheraton Hotel.
Feb.

28,

Trader*

costs

was up 0.4% from October and 3.2%
B^t January markdowns in car prices
post-Christmas cuts, Mr. Clague declared, can be ex¬
pected to bring a decline in the over-all index.

of the 1947-49 average.

higher than

year

a

-Dinner

-at

Mid-

Bellevue-

Free

The

World

(Houston, Tex.)

Texas Group

Investment Bank¬
Association annual meeting

at the

Shamrock Hotel.

June 9-12, 1958 (Canada),
Investment Dealers' Association
of Canada annual convention at

the Broadmoor.
Nov. 2-5, 1959

(Boca Raton, Fla.)

Annual

Convention

the Boca Raton Club.

30-Dec.

at

"

5,

1958

(Miami

Investment Bankers Association
of
at

America

big edge^ over the communists

week.

"some nagging doubts have cropped up on how

long overall Free World steel supremacy can be
whether we are still ahead in some technical

maintained, and
areas

of

steel-

making."

:
%
>
Non-Communist countries outproduced the Reds

this, year by
more
than three-to-one or 242,000,000 ingot tons to 80,000,000
tons.
The United States output of about 113,000,000 tons was
twice that of Russia's 56,000,000 tons, but this trade weekly points
out that Russia is closing the gap technologically.
It has pulled
ahead in some blast furnace production techniques and may be
out front in high-temperature metals, since it has been quick to
"borrow" western ideas and adapt them to its own needs.
Even

more

worrisome, says "The Iron Age," is the fact that

metallurgy is the number one technical study in Russia and each
year

it graduates ten metallui gists to our one.
observations brought back from Russia by Dr. Morris

Cohen, Professor of Metallurgy at Massachusetts Institute of Tech¬
nology and Dr. Dennis J. Carney, division superintendent of
steelmaking, Duquesne Works, U. S. Steel Corp., are that Russia
is after maximum production at any cost. Worker safety and com¬
fort

Nov.

a

Some

National Security Traders Asso¬
ciation

holds

steel

It notes that

April 23-25, 1958

still

output, but the Reds are closing the gap in steel tech¬
nology, reports "The Iron Age,"* national metalworking weekly,

in

this

Stratford Hotel.

ers

This

ago.

other

and

Association

Philadelphia <annual

Winter

...

climbed to a further new high last month,
but should turn down in January, Evan Clague, head of the
Bureau of Labor Statistics stated.
Higher prices on 1958 auto¬
Living

(Philadelphia, Pa.)

1958

Investment
of.

increases were
2.900 and Ohio

mobiles, he reported, were largely responsible for a rise in the
government's consumer price index during November to 121.6% '

Jan. 27, 1958

Beach, Fla.)

of this, total

adjustment"

serious concern."

ably good year, perhaps not as good as 1957." He added, that he
not look for "large-scale, prolonged unemployment."
Pointing out that he did not believe "the situation at this
point" required action by the government in the sense of "largescale public works," he cited the prospect of "increased defense

employment

in

total in prospect for 1958. To make

look

did

of bad

Quebec.
.»
*.
the money de¬
partment, American Express will Sept. "29-Oct. 3, 1958 (Colorado
issue over $4 billion in
cheques,
Springs, Colo.)
money orders and foreign remit¬
National Security Traders Asso¬
tances in 1957, with a still larger
ciation
Annual Convention at

Altogether,

any

seasonal

COMING

Manoir Richelieu, Murray Bay,

world.

to"

talked

ber

it

multiplies the client
Corporation which
already the largest car and
truck rental organization in the

course,

have

I

Stead

Hertz franchises

overseas.

for

one

the

subsidiaries

"economists

1958, but "not one which will
*
" Continuing, Mr. Mitchell stated that 1958 "will be a reason¬
us

above

Express). In connection with
joint venture, American Ex¬
press strengthened its partnership
.with Hertz by buying 25,000
shares of Hertz

stated that

"cyclical

a

cause

2.9%

SALT LAKE CITY, Utah—Guss

con¬

the middle of 1958." The Labor Secretary's
present lull in business was that the nation's economy

term for the

faces

news

"in

upturn

an

a

largely by economists.

Mitchell

Mr.
for

Last week's

Form Guss & Stead Co.

is

ownership

from the remarks of James P. Mitchell, United States Secre¬

tary of Labor, made near the close of last week at

and

rising profitability.

&

degree of comfort should be derived by those greatly
over the present downward trend in the nation's econ¬

concerned

omy

s,

supersonic planes all make possi¬

this

tion, hotel accommodations,

Grand

the

can

guided and sightseeing tours from
the
Digitized forGrand Canyon to the
FRASER


Assuming

51% by Hertz, and 49% by Ameri¬

Hawaii, Cuba and Porto Rico, and

full-scale

been

since 1950.

year

Corpora¬

and corporate payrolls.

sonal

continuously

have

have

(The

has

of

flowed
and

dividends

cash

ties Co. and H. Wayne Stead & Co.

travelers'

car-rental

facilities

that

vestment business of Guss Securi¬

within

travelers

of

Hertz

and

fact

by the

the

20%

tional

securities,

actual

dividend,

the present $2

United States have been carrying

service in New York City for the
safe transport of cash,

In

(exist¬

tive, should be heartened

a

you!

company

exceedingly well managed; in

ing

includes

J
Some

structure couldn't

205,529 shares of common

on

Industry

ference attended

simpler, consisting merely of 2,-

cargo

money,

a

big overseas

a

only

not

nations

is

should

the $50 million mark.

The corporate

ing,

business. This work often
Ira

than American Express Co., whose
famous travelers' cheques provide

indeed

doing

companies

to

travelers

total

the

American Express is a yield of 5.26%. This $2 dividend
the leader in international
is well supported by net earnings
freight forwarding and customs
running above $3 for 1957; and
brokerage services which it per¬
forms for dozens of distinguished stockholders, present and prospec¬

cer-

name

$48 million in 1956*.

year

Further,

Bali

or

Bali. And

zooming.

has been

ness

bean, Casa¬
blanca, Cey¬
lon,
Pago

Index

unique

business,
holiday
vacation,
or ing as a result of an 11% for 1 split
honeymoon.
Since Americans in 1950). The stock enjoys an ac¬
have become in the past decade
tive Over-the Counter market and
the "travellingest" people on this
planet, American Express busi¬ is currently quoted at $38 afford¬

embarking on
holiday
cruises

this

cross

Price

Auto Production

Business Failures

Its gross earnings have

1949 to almost

be

quite

a

Output
Trade

Commodity Price Index
Food

and

steadily from $14,200,000 in

For

air¬

of

Christmas;
and tens of

is

Express

company.

rising profit.

a

Retail

State of Trade

point of profitability, Ameri¬

can

Production

Electric

Carloadings

est rates.

a

Steel

The

due to improving inter¬

to do so)

In

billions of dollars

(r

In

for 1957 should rise (and continue

COBLEIGII

Thursday. December 26,1957

.

portfolio earnings

that connection,

great company which sends
Global journeys and brings them back

swift account of

a

corporate bonds.

ernment and

.

rela¬

tively short term municipal, gov¬

Enterprise Economist

Presenting

part in

for the most

vested

.

annual

the Americana

convention

Hotel.

are

a

poor

second with the Reds. Russia is getting more pro¬
same
size blast furnace than We are.
Russia

duction

from

operates

a unique "pilot plant" mill known as the Tula works.
capacity of about 500,000 tons a year and is largely used

It has

a

the

Continued

on

page

28

Volume

186

Number 5702

.

.

.

The Commercial and

Financial Chronicle

(2813)

5

countering the downward market
movement, particularly over
shorter term. But at least

Observations

.

.

.

On

the

Market Place

Broadly overlooked

the

now are

present constructive aspects in the

"technical""

place.

of

areas

the

market

-For'example,; there' is the

decis i

chart g'e /to
health
f r o m

specula-./f

tive-

excesses

the

|
|

invest-

went

c urn-

munity

a

ture

with

least

at

re-

cent highs. For

personal

ShelbyCullom

%

showed

Davis in citing

A. Wilfred May

cocktail set's" current ruminations
oh how low the market is

going

to go, in lieu of the
dreams
when
the

Average-was.wobbling

its peak

on

100 points higher. Sooner or later
this foible will be corrected which

with

to

the

conversion

former

overhanging
buyers will

potential

accelerate

major rise

a

of

it gets

once

under way.

short

interest,

the

are

size

of

the

drop

While
last

November

successive

aggregating

0.4%

decisive

reductions from

also

indicated

ing

gains

and

government

in

.counterbalanc¬

are

consumer

spending

purchases—with

the overall gross national product

figure ending
than

the

1958

percent

one

not

year
or

be¬

so

this year's peak. And it should
remembered

that

the

present

which

(now
at curtailed
outlays for inventory
3,12.9,000 shares) has been hover-, carry the counterpart of a bul¬
ing around its highest level since wark of future demand.
the 1932 market depths; and the
;
And there are actually present
low

level

of

speculative

credit

a

of .member firms the

•

Specifically

extent

to

outside

tors,

affirmatively offset¬
favorable
areas.
Monthly
housing contracts and starts have

been

market's

; In

forgotten ris

widely

already

been

which

present

so

the

future

and

show

in * the

decline.* /* :

reflecting

this

/

decline

already registered are the current
low, price-earnings
ratios
now
ruling many issues, as textile at
7, and retail at 8, times earnings.
perhaps
prospects for

the

even

the

rails

adequately taken into
their

current

in

speculative market periods. The
emphasis on quality actually is a
habitual accompaniment of inde¬
stages).

Money rates constitute a
yardstick for measuring the
parative
attractiveness
of
stock. ;And

the

evidenced

now

against

this

over

proving,

with

farm

billion to $32 billion in 1958.

By way of specific industries
standing up against the down¬

trend, the pharmaceutical indus¬
try is completing its most pros¬

real
com¬

the

furtlier increases.
Retail trade and petroleum rep¬
resent two mixed situations where
the present inclusive

likely

founded.
cember
to

seem

not

as

turn

out

un¬

The

about

be

to result in

geographical

no

irregu¬

larity. And the present heavy oil
inventories may well be corrected

through

curtailment

of
imports
production, thus

and also domestic

Reserve

relieving the current price
guaranty profit margin difficulties.

and

really high rate struc¬
Vanished Bull Market Props
ture additionally supports the re¬
duction in competing yield as an
Now
relegated
to the back¬
effective long-term market force ground is the
growth factor rooted
bet.

than

a

mere

short-swing

In

fact, just as it took six
before
money
tightening

years

translated

into

now

be indefinite.*

uncertainty of timing, and
some
cases
even
of complete

absence

of

correlation, between
external factors and the market's

performance,

is fundamental
to
consideration of the indices.

Such
was

market-business divergence
marked

1942,

and

in

1926-1929,

1939-

ucts

the great expansion of
well-managed
industrials'
planned research. Surely not yet,

<

Some

Extra-Market

1

In the

area

of economic

always events
fit

the

Tid-BHs

are

market's

activity ^
being colored
unfavorable




s

i

a'

Theodore

of

Services, Inc.,
Minn., as a port¬

the
in

manager.

Prior

he

had also

a n

d

managing editor of
before World War II.

investment brokerage

The

firm
Clark, Dodge and Company, 61
Street, New York City, has
received the department of De¬
fense
Reserve
Award
for "butof

Wall

standing
cooperation"
in
their
policies toward military Reserv¬
ists

and

Reserve activities.

The award,
and

nant

consisting of

pen¬

a

we

experienced in. 1956 could not be
had

to

prove

be

with

the

Western

supposed in the 1930's, has
"the frontier" become closed. And

although in recent months it has
become

painfully

"inflation" is not
is

it

safe

write

to

permanently
new

a

as

costs

a

realized
one-way
off

this

factor

Seorge W. Hall V.-P.

to

a

of Wm. E. Pollock
Wm.
Pine

Pollock

E.

Street,

specialists

&

Co., Inc., 20
York
City,

New

in

U.

Government

S.

securities,

announces that
will be elected

Hall

W.

President
Jan. 2,

of

the

George
a

effective

firm,

added

—

end we

lose

freedom.

our

its

to

the

staff

of

B.

C.

know, the threat of Russian superiority in the military field is
real.
Thus,
the freedom-loving
nations

faced with the

are

missile

to

neces-

research

—

to

Staff

Samuel

West
was

B.

joined

the

Franklin

Seventh Street.

&

staff

of

215

Co.,

Miss Boian

formerly with Marache, Dof-

sity of

further assistance to our
for
and
expansion

research.
For

Canadians
western

and

citizens

countries

•

(Special to The Financial Chronicle)

ANGELES, Calif.

—

John

W.

mick and Company 3761 Wilshire

not

be

effective

in

Carver- is

Boulevard.

moment and

a

this

year

to about $21

a new record
current dollars.

of

Sputnik

in terms

Unfortunately,

this
achieveillusory since
it is largely accounted for by an
somewhat

is

ment

increase
lii prices. In j volume
terms, it would appear, .that our

of

total

services will show. little change
and on a per capita basis will be
somewhat lower. Thus, there was
a

of

diversion

into producwould yield
sub-

resources

channels

tive

stantial

since

reduced

be

military

dividends

in

progress.

social

and

attainment

of

-

of

some

our

social and economic objectives deferred.
A moment ago I said that Sputnik has social and economic im-

plications foi Canadians. At the
present time we are committed to
major expansion in

penditures. ■Old

Join* McCormick Co
Joins Mccormick CO.
LOS

for

pause

Gross national product

neces¬

universities

a

flemyre & Co.

favorable.
may

us

Reviews 1957 Accomplishments

of

This underlines the

and

Thus, we have * demonstrated
that not all the indicators are un¬
items

Let;

take stock of the accomplishments
of the Canadian economy in 1957.

billion,
as-compared with almost.$30 bilBon in ig56
Qnce again, we have

vances.

other

of

economic history and the experiebce of 1956.

in

Reduction of
military spending is now a forlorn
hope. It is more likely to increase,

ANGELES, Calif.—Jeanne
has

Boian

solid

more

a

through in abstract scie it if ic
theoiy may be the, toieruni
er^o ; achieved
tomorrows
technological
ad-

economic

(Special to The Financial Chronicle)

LOS

fur¬

offsetting

advance- from

According to those who should foundation.'/This is the lesson

could

Richard G.

Co., 131 State Street.

Franklin Adds
,

to

plications. Most of us had been
hopeful that we were reaching
the stage where defense spending

(Special to Thi Financial Chronicle)

BOSTON, Mass.
been

the -economy

has broad social and economic im-

1958.

it

present

subjected

questiqn*^tw%im.the
deihocrdtSST wm ' have to.

severe ..stresses ; and* -strains.
A
cge** slackening toas desirable in order
ognize that social and economic that the economy might consoligains are meaningless if in the date its recent gains and resume

Vice-

Two With B. C. Morton

high last month.)

The

,

no

v.

market factor?

climbed

in a depression or at least headed
l°r one-

will amount

that

street,

rate of growth..has not been

maintained* seem.to thinkweare

True, the boom has levelled
off. But this is*, probably a good
political and military -thing. .A rate of expansion equal
As to which of these to that experienced in 1956 would

„

was

high

World

complacently

.

as

.

on

objectives is most desirable; there' have
ern

devoted

party, Dec. 19.

This has proven

be tiue.

the

citation, sity of reappraisal of some fundawas
presented during ceremonies mental attitudes and policies. More
at the company's annual Christ¬ of our resources will have to be
mas

throughout 1957

going
pleasant
business
of
higher standard of liv-

superiority.
is

high level of

a

economic activity. would prevail

our

certificate of

a

exPected but that

the

Sputnik I and Snutsputnik l ancl Sput

in

the

ccrned

J

devoting

to the wel¬

.A year ago I remarked that con¬
tinuance of the rate of growth we

Ashforth

seeking a
ing for our people. Russia, on the
other hand, has been mainly con-

Defense

Dept. Honors
Clark, Dodge & Co.

C.

hnvp

wp

been

about

been

"Iron Age"

justifies

resources

Incomes and employment haye
rJsen 1° new peaks and stand in
assumption of our superiority
contrast to the. comments
scientific
and
technological ?? Jhe pessimists:who,. because a

have

with

was

Service

Investors

A.

may

fields

thereto

Moody's

our

,

■

kind of jolt we needed. With
lead in atomic weapons and

Diversified

Minneapolis,
folio

Sputnik

of

more

fare field.

weak-

launching of
launching of

firm.

the

time

hardly

years

nity of nations.

Gerken

H.

of

afford them, espe¬
when it would

can

a

expenditures have to be
paid for out of production and the
productivity trend of the past two

dis-

finally,

to whether

as

Welfare

commu¬

And

we

these

desirable, but the

does arise

at

direc¬

military and research
spending will have to be increased.

the

ened the western

not

in-

can

other

will'argue

one

are

they

in

appear that
>

East./

have
-

not

or

cially

s

broad¬
in

No

projects
question

down.
s

that

so

-spending

tions.

..

agre ements

Mr. Gerken joined the Laird or¬
ganization in 1955, having pre¬
viously been associated with in¬

from

v

t6

Corpora¬

Morton &

for

u

Middle

tion, and the world's quest
higher living standards. And

ther

as

Company,

Vice-President

vestors

crease

sphere of in-,
fluence
has

Cin¬

in

Crane and Barton L. Munro have

(Living

1946-1949.

R

tion, 61 Broadway, New York
City, members of the New York
Stock Exchange, announced the

our

This

the

business

a

effective reaction to credit loosen¬
ing must

broken

Frederic F. Latscha

Of laird & Company

a

Government

•

negotiations have

Internal

as

.

of the

continues

war

fiecl. Disarma¬

been

election

'

as

top of all this, the provinces and
tile'J municipalities ;are
seeking
larger "grants from the Federal

if

intensi-

ment

T. H. Gerken V.-P.

major market overlooked post-bull marketwise,
collapse,, the timing of investors is the development of new prod¬

in

unabated,
not

in the nation's expanding popula¬

now

disappointments

past.year.1 The cold

a

rather

of-the

ened

all-important De¬
department
store
sales

than

worse

to

pessimism is

-

..

&'

spectacularly

as

a

international relations has beeii

one

his

Laird

not

Mr. Ashforth expects capital investment in

The lack of
progress in the field
of

investment
...

healthy basis—though

■

;

and prior
thereto con¬

cash

receipts
expected to rise from 1957's $31 (a

as

tax

with

cinnati.

again expanding

economy

195TJevelj asserts there is no basis for/
major depression at this time;,:suggests need for
revision; comments on agitation for higher tariffs, and
details central banking monetary-credit expectations.

the fear of

Mr;

ducted

an

1958 to remain at

Ross, Borton
Simon, was
formerly with
George Eustis
&
Company

own

sound and

a

last few years.

&

agricultural situation is im¬

gloomy perous year in history, with pros¬
be pects still bright for 1958. And the
by utility industry's volume and
reduced earnings
will probably register

grade issues should be considered
less attractive in depressed than

Board's

The

increase

may

drastically
Interesting is the urgent
cautioning against buying any but
the "quality" issues it is difficult
to understand just
why the second

common

10%

a

account

prices.

cision at all market

been

year.

fac¬

publicized/have
reflected

And

rising since last Spring, with
housing units in 1958 set to

new

unfavorable

the

100-point

part

lowest since

-

on

Bank

Building.

number of

operations, with net debit balances ting
January, 1955..

Ohio —Frederic

Latscha, who
has recently

all-time high in busi¬
spending for plant and equip¬
ment are, of course, in the
cards,

be

distortions

-eliminated and, with that,

Fifth

pany,
Third

and

near

are

year's

Evidencing health in the profes¬ low
area

CINCINNATI,

ness

more

sional

in

third

from the high reached in August,
it is still 3,6% above November
1956.

"how-high"
Dow-Jones

example, although

income
a

rfonthly

"weekend

market's

of

perspective in concentrating at¬
tention on recent peaks in lieu of
the great past rises to those re¬

f

sellers

rays

of

has been aptly
mentioned by

the

few

a

f

f
{

together

t long-term

a n

price level of the

f
f

flection of this

the

t

r

brightness is certainly called for.
Outstanding seems to be a lack

few

months ago. A

significant

irapo

A

(Special to. The Financial Chronicle)

new

equity share.
Puncturing of the gloom hang¬
ing over the current economic pic¬

-J
•

an

By A. C. ASIIFORTII*

long-term diagnosis of the Canadian economy's '
health prospects is provided
by Toronto banker who sees at
worst a brief
period of consolidation once; certain

WHk Clair S. Hall
cold

Sputnik era has functioned as F.
Latscha
feeding the market's decline;, has
become
whereas, actually with the accom¬ a s so ciated
panying stimuli to spending and with Clair S.
expansion, it should supply at Hall & Com¬
stimulus to the

1

pervading the
atmosphere in

Frederic Labcha New

performance. Thus, from a
investment viewpoint,
the

least

-§

the,

Now and Years Ahea
-

President, Toronto-Dominion Bank,
Toronto, Ontario

Bear Market

a

in

the motivation of value.

NOT TO BE OPENED 'TIL 1959
Some Xmas Cheer for

be valuable

bolstering your patience for the
pull, the indispensable accompani¬
ment of your
purchasing issues on

By A. WILFRED MAY

-

Canadian Business Outlook

the

keeping

them in mind will

now

*

with

McCor-

age

v^elfure exallowances

have been increased. Unemployto be broadened
ment benefits
A

are

comprehensive

plan of health
insurance is being instituted.
On
•An

the

address

by

Mr.

Toronto-Dominion.

shareholder

meeting,

Ashforth

before

Bank's'

annual

Toronto,

Dec.

production

v

goods

and

slight drop m thSjxeal stand-

ard °t living of our people,
Perhaps the best description of
the
is

Canadian

economy

moving sideways.

is that, it

Such a pea dynamic

riod js not abnormal in

free enterprise economy. It is too
much
0f

to

expect that the pattern

growth will be

each
new

and that

to

we •

Bagicallyr
omy

even

will * climb
peak of prosperity.
year

the

Canadian

v*

a

..

ex¬

remains healthy. The trend
activity has reflected

over_ap
^

main

vestment

j
^

generating forces. Innew capital products
t •
record level, but

£

b

195ft

Jn

was

not

as

largeBand part of it ,was due to
pric^s_ Consumer.spending
hSS increased hilt hejbi fllsO ih?K
has:be£n*a levelling Xltf; ExpOlrtS

11,

Continued

1957.
:

■

"d

-

'

on
■:

p'ag? 26

tv.v,

t. ■■

li'lV-

The Commercial and Financial Chronicle

that

way

.

Thursday, December 26,1957

.

That is, we have
strengths and y
weaknesses thoroughly—we have d

pessimistic inferences from present sideways more-

of

ance

for

diversification of economic activity;

as:

jobs in non-manufacturing

new

lowered

durables
of

in

consumer

instalment

customers

what

they

in

effort

appear¬

level of

cycle

out,

,

has

non-

Russian

satellite

the

and

that followed it into

space

a

tew weeks later may seem to have

little

bearing

or no

on a

discussion

d i sin g

and

well

have

.

Though

important for
in¬
in

marketing
look

explain a little about the way
Chrysler Corporation have
meeting our own competi¬
tive challenge.

is to

to

ahead to

future

been

and

opportunities,

general public, the For¬
Look is a phase that de¬

To the

certainly

we

at

we

poten¬

tialities

ward

not think¬

scribes

the

quite yet
about beating
o u r
competi¬

styling

that first

are

ing

to

tion

L.

Colbert

L.

markets

other

on

can

chain reaction in the think¬

a

ing of the American people that
affect nearly everything we
do from now on
including the
will

—

merchandising and distribution of
goods and services. Our mental ap¬
proach is bound to be different
from what it

before this

was

new

development took place.

of

Forward Look has

meaning.

all agree
that what happened on Oct. 4 set
we

appeared with

our

the
much broader

a

expression of
philosophy. It
progressive orienta¬
management, for the

It

is

an

whole company

stands for the
tion

of

our

planned leadership of our prod¬
uct
engineering and design, for

prosperity for granted.
it

another

guard

way,

all

at

times

treacherous

most

Or to put
must be on
against that

we

of

all

mental

attitudes—complacency.
These days none of

tak¬

are

us

ing

anything
for
granted.
Established procedures are being
questioned and many long-settled
programs are getting a searching
re-examination.
fhe

good.

And this is all to

To

keep this
cound and moving ahead

nation
we

can

afford to rest satisfied with

never

and

research

equipment

needed to
competitive market.
*

country there is the
ever-present danger that we will
take our national
strength and

is

the

serve

tit

to emphasize,
however, that successful promo¬
tion of a product or a service de¬
pends primarily upon the talents
and the efforts of the people who

design and produce the products
or

who conceive and
We at

get that

it is

our

themselves

cars

whelmingly

provide the

Chrysler never for¬

the

Forward
that

Look

are

most

over¬

important

or

the

gains

have

we

of

that

the

principal

business failure is

com¬

placency. It also reveals that
tfce years since World War II

in
a

great

many
business managers
have relied on the
country's gen¬

eral

prosperity
to
keep
them
afloat and have forgotten about the

traps that

are

for

who

those

always set, waiting
get

too

comfort¬

able.
*

headway

aginst

We have

of

some

the ablest competitors in the busi¬

history of this country—but

ness

to continue to make
headway is
going to require alertness, imagi¬
nation and flexibility.

We

are

particularly conscious of
challenges facing
merchandising of

the competitive
us in the retail

cars.
No one in this country
needs to be told about the inten¬

our

In some lines of

business,

com¬

petition is getting so intense that
complacency doesn't have a favor¬

sity

able climate in which to
develop.
This is certainly true of the auto¬

years.

mobile business, and my insurance
friends tell me that in the last

well

few years

strong dealers
automobile manufacturer
hope to mjfke headway
against its competitors.

especially, the pace of
competition has been getting just
about
it

is

that

hot

as

in

♦From
51 st

surance

so

your

business

They tell

there has

riod when

ine

in

ours.

never

me

been

a

of

the

automobile
kind

competition
dealers

Under
it

takes

among

in

conditions

recent

of

this

as

located

a

talk

York City, Dec. 11, 1957.




forward

Chrysler themq.
As

we move

new

d

We

are

such

f in

r'

f

i

ty

e

,

FHA's

when

,

n

b a n k s w e
really mean

very

have

and

;

p 0 g

transmissions,
power
- steering,
brakes, and air conditioning. And, on the other hand, wfe
also interested in the increas-

j

fn

n g-

._

-

.

\

.

turity

ability to

judgment,/

our own

we

problems in

chandising and distribution

All

of

no matter what
business may be,

us,

particular

car-

a

of

and

the

type

•

the /investment

V;

-

of investment and
policy might state that bonds

summary

high

prime
Adequate credit.
and periodic review

grade.

.

of both bonds and loans should be

part of such policy.

-

Sifurd R. Wendin

n,

our

can

;>

•

And

our

this

goods and serv-

constant

change

In

weeks

recent

been

of

all

us

the

that

-

Wliat Lies Ahead for Business?

bonds

of

part

are

.

,

....

..

the various size groupings both for
commercial and savings deposits
and

continuous and

a

: The • subject also suggests the
inter-relationsliip of investments
provide very little opportu- and loans and to that might well
nity for the complacent attitude be added deposits. In my opinion,
to develop.
bankers should have the concept

merchandising

of

estimates

the* probable

fluctuations in those deposits.* It
might be argued that without deposits there could be no bank and
the same could be said for loans,
but we often use the analogy that
the deposits are the raw materials
of the banking business and if we

the

once assure

ourselves of th^

source

over-all asset distribution and not >f our material and the prospects

have

just

a

list of items with no rela- for its future behavior, then one

weather eye on tionship to the other assets of the half of our problem has been
the economic indicators, trying to bank
or to
the bank's deposit solved.
A
•
get a line on what lies ahead for structure.
»
The other half of the problem
business.
There
is no question
Of what avail is it to the man- lies in the loan analysis and here
keeping

a

that

all

at

in many parts of the
there has been a side-

economy

wise

a

movement

in

others

minute

or

the present

for

some

there

has

time,

been

a

I would like to put

so

situation in

been

slightly
frorii the one
getting recently.

start

by reminding

a

different perspective
we

have

Let

me

you

that twice in the last eight years
we have had widespread declines
in business activity, in 1949 and
again starting late in 1953.
On

both occasions

we

had downturns

in many key sectors of the econ¬
omy,

and

agement
.

stockholders

bank if it does not make

and

more

specifically, in the

profit.

factory
the

The

a

of

a you

satis-

keystone

free

earnings base.

.

-

General investment" policies

easier

to

-

must know what various types
loans

of

can

be

expected,

the

and the indicated turnover/ For example, a bank with
an
extremely heavy instalment
loan position which was turning
over rapidly might have a degree
of liquidity present in those loans
not available in the mortgage see¬
volume,

are'tor of the loan portfolio. •*'

develop than loan poli-

cies because the entire bond mar-

With this analytical information
we are now

in

a

position to trans-

policy into program. The
local loan policies have to be de- objectives for each type of loan
veloped in relation to the-poten- category will
be developed in
tialities oL the area served by the relation to the potential of the
bank.
area served by the
bank." Such
Loaning: Policy
objectives would be those reasonket is available to all

With reference to

a

banks, but late

loaning pol-

ably certain of achievement with-

only a very broad policy of in, say. six months-to a year, after
capit|l goods and durable goods a general nature can be developed which the objectives would again
sectors.
But the economy as a
because loan, potentials vary so be rc;YIfwe(^ but the point is that
whole was able to adjust to those
widelv. It should be the policy of
difference between the presdownturns because consumers deau banks to grant only loans to ent loaning position and the obcid.ed to go right on spending
asftbose borrowers whose ability and jectives would have to be offset
much for goods and services as
willingness to pay in accordance hy short-term investments. The
they had spent before any signs with the terms of the loan agree- difference between total assets and
of lower industrial activity apment at the time the loan is made the sum
of loans, building and
peared.
In
seen

icy

to be definitely assured, fixture account and the minimum
opinion it is more that a cash position becomes the size of
program of loan objectives should the bond portfolio. You will note
be worked out in relation to what we start with the loans because
appear

recent months

have

we

adjustments

being

also

made,

And although they are somewhat
different from the adjustments of

In

my

previous
same

periods,

they have
As you

general effect.

loans,
others mortgages,
slight decline for September and others financing local area speOctober as compared with pro- cialities as for example live stock
duction a year a^n
vear
"Rut thp Uw-loans,
so
it becomes obvious a
ago.
rsut me m
—poUcy hag tQ be worked
teresting thing is that the pro¬

an

in

distribution

information

cr

v

have
mer¬

decisions

objectives

ing sales of the small foreign car., ry. W hile sqme
In recent years we have seen the may; shudder at the word profit / / Deposit and Loan Analysis
virtual disappearance of the tra- as. indicative of actively speculatThe first question to
be/anditional spring peak in our yearly ing or trading in the bond market, swered is: How well do we know
sales pattern. And we are giving nevertheless fbr this purpose it our own bank? It is my considered
close attention to the recent rapid will mean the type of recurring belief that a banker should start
growth in the renting and leasing income or occasional capital gain with
a
deposit
analysis
which
of cars and trucks.
which adds to the undivided prof- gives the
information regarding

duction
my

these
into

and local loans should all be

credit

In

of

v?-'

of industrial production showed a

tackled

A

.

loan

know, the Federal Reserve Index

*

.»

direct bearing on the ma¬

aX
;
" i

beyond it s
,

all

and

translated
a

portfolio;

:

that

an

effort to

heavy with savings depos-

distribution

.

restricting. the
risks and not

power

are

o u

talk about

automatic.

as

e

s a

much

interested, for instance, in
what appears to be a massive upgrading of the automobile market
through a demand for more pre-

e

we

are

we

the closest attention.

mium features

an

high yielding converiti^nal moict; gages.
A bank with low capital:
may decide on a large volume of •

wordsi f When-

watching
developments with

new

In

its will tend to .protect itself with

j

,

b road/
policies. Let us

the auto-

tribution is changing. In

A bank

v

same

with which the whole field of dis-

certain

out for each bank.

develop adequate earning power
the banker will so in turn decide

in effect

are

—

ing problems, all of us and all of
you are deeply aware of the speed

mobile business

investments

or

; should be govmarketerned: by ttiq
,

to

on

bonds

is available and what type of
earnings base a particular bank*
wants. For example, some banks
may wish to emphasize consumer,

*

-

y believable as stranger loans and their making what types of loans to emphasize.

®

„

a

Investment and loaning policies
basically the same because

are

Loqis

the

pe¬

by Mr. Colbert before
Meeting of the Life In¬
of
America.
New

the

the

well

many new concepts

Association

I think

due m great panto

is

that

managed dealerships to make

Parallels in Insurance
Annual

And

fair profit and
stay strong. And
it is only through

a

can

also

tact

and

will continue to make.

Forward Look program.
made

bonds of border-

compared to bonds; and (4) emphasize relatively short term *i
bonds and governments whenever local loans are high.

-

of

of
enterprise system is the
definite
falling off in activity, making of profits and my concept
If there is any one conclusion
This has caused a lot of concern, js
that
loaning and investment
to be drawn from our experience,
and rightly so. But it is very easy
policies should be directed toward
perhaps it is this—that a market¬
to exaggerate bad news, and for
developing
a : sound •;, recurring
ing program
is
most
effective
for

reason

made

when it grows directly out of the
just be¬
character and traditions and ac¬
cause they've always been there.
In this connection, I read re¬ complishments of a vital business
cently about a two-year study organization, and when the efforts
and resources of all parts of that
conducted by the
University of
Pittsburgh to find out the orincl- organization are enlisted to carry
it out.
pal reasons for business failure.
That study—which covered hun¬
We
are
far from
complacent
dreds of companies—comes to the about the success to date of the
cause

interest

.active

public.

buying

ices.

important

service.

are

maturity; (3) consider higher profits of loans

will

old methods and old ideas

•conclusion

the

as

look forward to

It

this

excessive

or

its account. After all, we are
Jiving under a profit system and
the word "profit '..here is;. to,, be■
development essential to that lead¬
accelerating process of change in construed in its true sense and
ership, and for the systematic in¬
,
;
vestment in improved plants and the methods of advertising and not-as speculation.
of

acceleration

the

Complacency Must End
In

1955

our

But to us at Chrysler,

models.

new

automobile

of

kind

introduction

the

planets.
Nevertheless,
off

like

would

I

possible to make a contribution
to that discussion out of my own
business experience. Perhaps the
most constructive thing I can do

everyone

terested

of these

if

it

consider

developments,

new

all

we

Presents Own Experience

,

In order to discuss some

distribution.

.

,

appeared and when so many new
selling approaches have been de¬
veloped.
,

form standards lor granting credit; (2) avoid
line

virtue of y

_

coverage

provided four rules of thumb, by Detroit investto check their, bank investment

basically the'same, 'Mri Wendin discusses the proper' concept
of profits in
banking and suggests bankers: (1) establish uni-

t

programrS

Look

additional

are

policies. After noting that investment and loaning policies

mar¬

a

pro¬
it has turned '

As

us.

Forward

our

the

merchan-

f

for

this result

insurance

about

up

.

counselor with which

ment

know—all/

needed to
to shape

had the

the

The

Bankers

and'

us

enlisting the enthusiasm and cooperation of our own employees
as

mobile year in 1958.

one

about

knew

Safety and Profit

President; Ilerber-Furger-Wendin, Detroit, Michigan ;

particular needs and be most

indicative of another good auto¬

as

an

ductive

September and October; and current high rate ^
spending. Refers to ending of three-year car- ,

credit

Foi

XX

By SIGURD R. WENDIN*

keting program that would fit our,

anticipated high level of

factory employment;

construction, including highway building; record

market

the past

have gone to

we

■

to compensate

areas

of

record

and failures in

.

several reasons "for looking forgood business in the year ahead." Cites such favor¬

able factors

own

the public ;
itself
by means of market re¬
search, to determine what our,

—and

ment, Mr. Colbert submits
ward to

our

at

successes

President, Chrysler Corporation
no

our

looked

Industry?

By L. L. COLBERT*

Drawing

other estab- ;/

lished company.

researched

And Automobile

fundamentally

be

may

sound for almost any

What Lies Ahead for Business

o

.

(2014)

€t

of

all-time

non-durables

high

in

Continued

reached

September,
on

page

11

♦An address

nuai"

by Mr. Wendi„ before the

stidy Corference^Vh? \jniversity

s^ich,gan'^^Ann Arbor» Mich-» Dec- 5>

they help build business for. the
bank and community and orai"harily also contribute more to
profits. than do the bonds.
v
,

A bond portfolio must function

to give a bank three results/one,
price; stability; twOj liquidity; and
three, income. All are intertwined.
It wlu be easier for control purposes to1 segregate
the portfolio
into thege thjee groupings. Cash

equivalent items should meet tlje

Continued

on page

37

<
o

tn

.r

~.
.

TNBCaoratmuionpnsadkatnly

•

V.
'-

Yields 3.00%

15

1,390

&
Stone

&nCINicooclau.s,

Bankers

$1,390: 1,390, 0 1,390 1,390 1,370

/Amounts

0

of

City

TCormupsatny

•

~

CSWeecoubrsitpte.sr

IS&CHntauloscer.y,

.1972 1973 1974 1975 1976 1977

Du*'•e Dec mber
'•

3.00 3.05 3.05 3.10 3.10

Chicago

Stifel,

-YNCoheirckwag.,f CIAblMthinouaecrpsamesgyyd:f., &CEMacloAriths.u
ITnacoxmes v; IClhinocoagfs,
(BS$b2sec5u,0tvn)fIrCEltodahipvxcmyedbsgf,lim«t-aronuse. ST(dDc1f1hc9-u5p8) BNN&CFSBIVJamn\itcigohosce.kk.l,,Por-tlanfd CFI&WETTCKL&CGBarebimyudo.lopsn.wts,I\BHMRMctrrDyekdrMeNimpaohsn-vfl
>•

;.• ;. -,•

BNIlaitnionoksl CChoicmapgfaony

NCompany BTPhailtdonepk G&Sroengsy
denpotromaeingicsaltyb:l,
SBB1cuo9hinlod5dfs7nlg
CINS&KMIonheonmunwpcogrcaweaa..sydyr,,,
Ffiretapodnhrocpsmiunleannstle $25,0 ECdtuochaitiefny CCIClFAJhtitoiiganhocshocfaecegrngasyl,,f ibslewataruseuagochpnfsiyejrvdvni,,fy
fB$i5O0nt,pohNutahrtoDerifzlSe, dBicwcgoobenuasinlusfdes, loctatopahwgahxreirilnbefosldnuy i1JnDp1ptras9eaincmrec5-m5bdb7ldulr, S&CRHM&CShoeoaimeumtlllptdp-.Fasinrnsyy"* Curtis GTCCNB&TCeoaorrmmtuiuornpgsesafkyct.nlyKMKity,, CGM&W&CRouomldenasmpnhbaas.nwy,y
Yields 2.85% 2.85
—

;■\

2.5)0 2.90 2.95 2.95

■

Conti ental Trust
and

Due

-

V 1967 1968 1969 1970 1971
1966

D1ec m5ber

Amounts $1,390 1,390, 0 1,390, 0 1,390, 0 1,390, 0 1,390
v

.

Trust

$1,0

' -Z.
•

S&Ctevons. adIcrpeNBtionkl

P&eCaobo.dy HN&eComyopehs.il,

Kidder,

Northern

bionds

The

Coupon

Co.
& Incorp ated

Blair

Co.

M&ro ton Incorpated

H.

W.

Exempt,

Inter st

:

Yields 2.50% 2.60 2.70
*

3/^%

;

2.75 2.80 2.80

-

Due

of

Board

■*

D1ec m5ber

■ Amounts

Ctohietyf

I960 1961 1962 1963 1964 1965

Treaofrsu e ,

$1,390 1,390, 0 1,390, 0 1,390, 0 1,390, 0 1,390, 0

beel mavi dy D1ecm5ber,
TVHOESEET D oopin f
the

in

which

Dated

SBavingks

T&ur st

Harris

fdOeofelirvrdry

FiBNaatrionsktl

IS UE




B&oCswoorth. Incorpated
Braun,

^

The

NEW

Co.

L&eo b
Kuhn,

Robins-Humphrey

The

Brothers
Chicago
Lehman

of

BCiantkyClevand
National

of

'
&poC m any WJ&kaecbsoenr, NBaationkl CCohmicpagafony BBoualenv krd 77995,
AHyn

C.
A.

Incorpated

Paine,

American Trust National
&

Chicago

Dec mber

8

The Commercial and Financial Chronicle

($316)

Narda

Microwave

Corporation—Report—Milton

.

.

.

Thursday, December 26,1957

D. Blauner &

Company, Inc., 115 Broadway, New York 6, N. Y.
Nopco Chemical

Co.

—

Memorandum

Redpalh, 729 Fifteenth
Also available is

a

— Auchincloss,
Parker &
Street, N. W., Washington 5, D. C.

memorandum

on

Pennroad

Corporation—Report—Joseph Faroll & Co., 29 Broad¬
New York 6, N. Y.

way,

Red Owl Stores,
It is

understood that the firms mentioned

to

send interested

will he pleased

Inc.—Analysis—Troster, Singer & Co., 74 Trin¬

ity Place, New York 6, N. Y.
Inc.—Report—T. J. Feibleman & Company,
Richards Building, New Orleans 12, La.

Kimrock Tidelands,

parties the following literature:

•r'

v

A. O. Smith Corp.—Memorandum—Robert W. Baird &
.

33)—Discussing seven additional companies
in missiles aud rocket field whose shares are held by the
Fund and citing a study of world supply and demand for
uranium for power and propulsion purposes—Atomic Devel¬
opment Securities Co., Inc., 1033 Thirtieth Street, N. W.,
Washington 7, D. C.
:
:

Atomic Letter (No,

.

Burnbam

View

—

investment letter

Monthly

Company, 15 Broad Street, New
able is current Foreign Letter.

—

Burnham and

York 5, N. Y. Also avail¬

Pharmaceutical Industry—Report—Smith, Barney

Chemical &

Street, New York 5, N. Y.
Electric Utilities—Analysis—The Milwaukee Company, 207 Last
& Co., 20 Broad

Michigan Street, Milwaukee 2, Wis.
on Bank of America, N. T. & S. A.
Investing in the Drug Industry

—

Analytical brochure

—

Har¬

:
;
Yamaichi Securities
Company of New York, Inc., Ill Broadway, New York 7,

Broadway, New York 6, N. Y.
— Current
information

Japanese Stocks
New York.

.

—

'

..

*'■■■""

'

Y

.

up-to-date com¬
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
yield and market performance over a 13-year period —
National Quotation Bureau, Inc., 46 Front Street, New York
Y';4, N. Y.
,
Y
*
' '
'
Stock Market vs. Industrial Activity — Report — Francis I. du
Pont & Co., 1 Wall Street, New York 5, N. Y.
Treasure Chest in the Growing West — Booklet explaining in¬
dustrial opportunities in area served—Utah Power & Light
Co., Box 899, Dept. K, Salt Lake City 10, Utah.
Over-the-Counter Index—Folder snowing an

.

a

Inc.—Memorandum—A. M. Kidder & Co., 1 Wall

Street, New York 5, N. Y.
American' Express
1

Wall

American

Company—Analysis—Gude, Winmill & Co.,

Street, New York 5, N. Y."
Motors—Analysis—du Pont, Homsey & Company, 31

Milk Street, Boston 9,
Public Service

Arizona

Mass.
Company—Analysis—Oppenheimer

&

Co., 25 Broad Street, New York 4, N. Y.
Bankers Trust Company — Bulletin—Laird, Bissell & Meeds,
120

Broadway, New York 5, N. Y.
Analysis

Brunswick-Balke-Collender

—

—

Halle & Stieglitz, 52

Wall Street, New

York 5, N .Y.
Y
'
City Financial Corp.—Memorandum—Shearson, Hammill & Co.,
14
Wall Street, New York 5, N. Y.
Also available is a
memorandum

on

Ford

Motor Co.

J. I. Case

Company—Report—Harris, Upham & Co., 120 Broad¬
way, New York 5, N. Y.
Cook Electric Company — Analysis — Parrish & Co., 40 Wall
Street, New York 5, N. Y.
Daitch Crystal Dairies, Inc.—Analysis—Hirsch & Co., 25 Broad
Street, New York 4, N. Y.
Dewey Portland Cement—Memorandum—-G. H. Walker & Co.,
503 Locust

Street, St. Louis 1, Mo.

'

•

Electronic Research Associates,

Ine.—Analysis—Singer, Bean &
Mackie, Ine;, 40 Exchange Place, New York 5, N. Y".

Franklin Life Insurance

Company—An ailysis—A. G. Becker &

Co. Incorporated, 60 Broadway, New York- 4, N. Y.
Georgia Pacific Corporation—Data—Herbert E. Stern & Co., 52
Wall Street, New York 5, N. Y.
'
Y •
Hartfield Stores, Inc.—Analysis—Van Alstyne, Noel & Co., 52
Wall Street, New York 5, N. Y. ;
YY
Iliram Walker Gooderham & W orts Ltd.—Memorandum—Watling, Lerclien & Co., Ford Building, Detroit 26, Mich.
- Y
Jarrell Aslt

Company-r-Report—Clayton Securities Corporation,

79 Milk Street, Boston 9, Mass.
Joy Manufacturing— Report—Georgeson & Co., 52 Wall Street,

New York 5, N. Y.
:
Keystone Portland Cement—Analytical report—Underwood,
Neuhaus &r Co., Inc., 724 Travis Street at Rusk Avenue, Hous¬
ton 2, Tex.

Maine Turnpike—Bulletin—Tripp &
New York 5, N .Y. •
■

J

Co., Inc., 40 Wall Street,

;

Micro matte Hone Corporation^—Bulletin—De Witt Conklin Or-

ganization*120 Broadway, New York 5, N. Y.
is

a

report

on

Also available
Mansfield Tire & Rubber Company.
"

(greetings

TROSTER, SINGER & CO



Co., 110

Wisftpnsin Avenue, Milwaukee 1, Wis.

Speer Carbon Company—Analysis—Singer, Deane & Scribner,
Union Trust Building, Pittsburgh 19, Pa.w .A:-. ",.
•

Swift &

Company — Report — Thomson & McKitifiOrf; it "Wall
Street, New'York 5, N. Y.
Company—Analysis—Ralph E. Samuel & Co.,
115 Broadway, New York 6, N. Y.
\

Tampa Electric
"

Tata

Chemicals

mam

data

Ltd.—Data—Harkisondass Lukhmidass, 5

Street, Bombay* India.
on

the Indian

Also in the

same

circular

Haare

market.

U, S. Tobacco Co.—Analysis—Hayden, Stone

Street, New York 4. N. Y.

&

Co., 25 Broad

-

Also available is a report

ris, Upham & Co., 120 Broadway, New York 5, N. Y.' Also
available-is a report on Standard Brands, Inc.
Japanese Economy — Report—Nomura Securities Co., Ltd., 61

Air Reduction

East

Our

Worthington Corp.

The Business Outlook
And Your Stock Plans

Reporter's

Volume

Number

186

5702

.

.

The Commercial and Financial Chronicle

.

(2317)

Outlook- lor the:. Chemical
By
i

Industry

DONALD K. BALLMAN *

The Dow Chemical

leaving that he just couldn't
future in

any

Company f

just

•

appeared

Dow Chemical official

little need to worry

sees

about chemical

to

market.

"

-

How
*

Much

There
feel

are

The

Opportunity?

who
industry

chemical

thp

l ist

to

fiAnv

new goods, that are
possibilities for growth

different and utilitarian, and is certain

-

greater than

are

before.

ever

position

•

,

discuss

for the chemical

is

the

outlook

I

on

at

even

don't

that

search

know

-.Research

in

being published which

industry.

ways
or

that

forecast-

a

is

motion,
slight

to

down-turn

products

use.

expenditures

So

by

the

it

is

strange

investment, and

an

have

expect
invest-

we

returns

on

people

have

our

ments.

in-

Many
th a

nh#»minn1

qbserved

irirlnefrv

mcilrAo

think in the

dustry

average of other industries. Again,
I believe that

look

must

we

ql our 111back

his-

torically to see what has
analyze the factors
caused these things to
pen, and then predict on the
ox our
knowledge-What may
pen m the future.
...

The

,.

there

kaP-

pened,

are

some

un-

aerlying reasons for profitability,
Any time a chemical producer

that

•have

hapbasis

add materially to the productive capacity of an existent plant

hap-

and

can

,

c

i°r

chemical

effect

turn

in

.

,

.

major

,

.

savings

the customer, the product in-

industry has not
of growth of
American industry.
It has consistently exceeded it! U. S. dollar
growth, according to the FRB in-

wood that

dex has grown for many years at
the rate of about 2\>>% per year,

type. Instead, we are talking of
perhaps a new catalyst that's go-

followed

the

volved

trend

It

certainly has high value,

isn't

if

as

we

were

selling

going to be made into
and is, therefore, like
other raw materials of
its
s

furniture
all

iutv{enes°tato bulXTwX.,1
siitnifi'pnnt.lv '
significantly,

;inrt.
and,

vpfli'
year,

ganir

nnrlinn

of

thA

thp

or-

or-

inrrpnsincf
increasing

in-

nlanf

Ui-

the

rhpmipnl

going to

full

55

billion

since

.

capacity

but

are

*V70

Qjiiuicut

chemicals

ganic

have,

xciL^

therefore,

nnnital

itu/psfmpnt
investment

capital

Pprhan?

it's

ooino

to

in
in

hP

n

growing at an accelerated
rate
and have, in fact, by their
higher rate of growth, raised the

!5ja

0

u

adva23cement jn
in what we call

years ago.
There

of

leases

nTt

?l)e:
this

one

is

much

the

and

profit

Geneial Motois 23

,

.

,

,

products.

There

are

0/-1/41^

Here

iiave

same

m0nths.

*

—.

within

-•

—

-

v

..

contributing the largest part
of the earni
of th
^on-utility
'.division. For the first half of 1957

pounds per year of production,
and such a product was really a

th®t "we
01

-

TnTo-,

,

day, these same products in many1
cases
enjoy markets of one bil-

many

in

the

United

nnotinn'

States

Ceed
'

we

:

•

xu

mis

is

^
to

The

sales

laboratory

new

the

pipe line system with
in

excess

quirements.
load

factor

is

only

Underlying Reason

industry

some

ani

basic

tive factor for this

standard.

for

jn

could, at a relatively small
cost, increase its revenues by an$15
million annually by
bringing its load factor to 90%.

the

building.

The

building

trade alone offers the potential of
hundreds of millions of dollars

worth of

new

business for chemi-

cajs
retrosDect

.

^

onlv

WG

agricultural

.

t 2o

mendous

m&dg oil

and

veirs

to

need

field

over

the

^ee

tre

other

incentive

industry

growth. In my
analysis, and this is without
question over-simplification, I say
own

such

chemicals

established

-

chemical

improved

an

It is also

of

the

living

to
growth of the indus-

sa-V

necessary

tr.y, could

offer

products

with

confidence in the ability of the
chemical industry to come up

new

products that have better characteristics.

Such

simple

things

with

as

the replacement of sole leather is
a
a

be

*°&
the

rubber

replacement

of

So

by synthetic rubber.

this

has

-pened. but it has
cause

the

not
come

chemical

drT

b

ol

ma>

about

atinS

be-

wtat

^be.

a

'

from

General

and

soiling
'

Mrr^T\ hefore t0 bG 23

City.

corporation at

wasn't

in

oooooo
'

worth

later

years

approximately

1Qa«

in

$250,000,000

1965

joisnnnmn
$215 000 000

a

a

forecast

as

in

„
cain

a

to

This

.
such

that

work

the
very

for

happened

General Moa

share

indicated..

are

agement

estimate

in

about

1958

expenses

The

man-

of. $2.50

.

to

appears

per

be

tirely reasonable due to the

en-

esca-

lation in gas rates to large
users,
°
I.

:

it

plant

and increased
and liauids as well

sales

of

gas

nrnfit* frnm

the air-conditioning business. Dividends have been increased from
410 in 1954 to $1.20 in 1957 and
could rise to $1.60 in 1958.
V
{
, - This
increased earnings potential has found recognition among

i

„

dividend, the stock is attractive
f°r mcome as well as appreciation,
A comparative statistical review
'°f
earmngs per common share
?nd lts dividends per share follows.

_

Earnings
Year

Dividends

per Com. Sh.

per Common Smare

1954

$0.43

1955

0.97

1957

1.85 (Est.)

1.20

1958

2.50 (Est.)

1.80 (Est.)

$0.41
0.41 plus 10% stock
0.98 plus 10% stock

1.56

Gregory & Sons (0
Admit J. H. Robb Jr.

fVia

numiami

miefAmKTgw York City, .members of ths

a-p

creased the number of customers
U

innnn

r

the

in

ueS IO

its

last

12

communi-

Next, manage-

system.

ment decided to S° into the ce"
ment,
and pet.roJ"eiu'. air-conditioning ^ i^jy-

cnemicai businesses, a

million

York

yew

^toclTE^chang^ ^n

2
will
admit
J
Hampden
^05^ jr> to partnership. Mr. Robb
wiii

hpromp

mpmhpr of tho Fy-

a

memb» ot the Ex-

Sianae

Edward Nelson will withdraw
fr0m

$500,000,000 consumer of
agricultural
products.
And
I

would

guess

partnership

in

the

firm

$500,000,000

worth

chemicals

of

t

will improve the farmers'productivity and profits by several bil-

raust

and Future

is

course,

the

continue

quate

to

means

the

have

that

We

replenish

exploratory research

so

that they

be drained dry.
At the
time, the industry must re-

n0^

main

attractive

from

invest-

an

tremendous
tremendous

time, and he

will

Gas

Management intends to build simliar power plants wherever feasi-

Hp

ble,

tnnninff

tapping

markets

Louis

fo?

thus

thus
its

nrofitable
profitable

new

new

An

^tractive

increase

of

gas.

was the entry
air-conditioning business
through purchase of the Servel
air-conditioning division for $4

Merrill

greeting
stock

a

their friends

Lynch,

a

card

in

share

the

wishing

full share of holi-

day cheer,

Fulton Reid Adds
(Special to The Financial Chronicle)

CLEVELAND, Ohio —David. F.
,

Reid has joined the staff of Fulton
„

.

.

„

„

w

x

indirect

substantial

a

Engel,

pierce> Fenner & Beane, New
York City, is sending out a most

build.

in the summer load

of

certain

a

Louisiana

kansas

attempt at

"wells

|||MTi|| Llfttch

form

con-

must

the

we

amount of research dollars to pure

wip

capacity should be doubled

The electric energy used by the

ade-

support

knowledge" by devoting

same

ffre

later on.

plant will be supplied by
a natural
gas internal combustion
engine generating station with a
capacity of 8,000 KW which Ar-

Growth

bit in

a

lndlistrv

to

research.

tinue

add as much as 700 per

cement

lion dollars.

This, of

in8s should add 300 per share and

o

Invirill LyUCH dHalCS

arnj

that the sale of that

...jn

.Ian

irjitial outPut of 1.4 million

a

n

.,

T

Co" Inc''

iTninn

rnmmnmn

Building, members of the Midwest
Stock Exchange.

into the

Allen Investment Co

Adds

(Special to The Financial Chronicle)

million. Although the past perDENVER, Colo. — Evelyn U.
formance record of Servel has
been less than inspiring, it looks Chandler and Joseph Karius have
as

if Ark La Gas is going to make

of this operation, since

been

added to

the

staff

of

Allen

ment standpoint so that new capital will be available to maintain

a success

future growth of the new products

'
operation of the gas industry and Miss Chandler was previously with

of research

the strong eflorts of its

T,,

'

...

*d

.

blue

-

sky

exciting.

-

.,

.

-

f ?n exa^Pte of

„

which to

me

is

Qalte

I mentioned earlier that

products have gone into the

its approach is based

i

using about

800,000,000 pounds of thinner for
nnH

and

in

sno

000 000
l,nUU,UUU,UUU
1

USing

Think'of'the

Pounds of binders.

inabilities

this

industry

of

late'

J

ilrvlte
aciyllc

hntnJipnP
arid

m

phoxv

nnrv

point,

£each'

production
about

is

7 000

supposed

Continued

on

page

39

"

Two With H. Carroll

to

(Special to The Financial Chronicle)

early in
being under-

BEVERLY HILLS, Calif.—Wray

f th- P1'6561^ t,i.me'.ab,°„ut A' Kennedy and Ira B- Smith

sion move.

It will build

a

'

Ark-' which will extract
gallons of ethane from nat-

§as

Amer. Programming
5
D

$3 mil-

petrochemical plant at Mag-

ural

<Jaily

for

marketing

to

proiso-butane and buiso-butane and butane for marketing to wholesalers.
duce nronane.
propane,

are

™™ &
Co., 324 North Camden Drive.

+

nolia'

*

Shaiman & Co.

Only a short time ago manage—
nient announced its latest expan1;

Mile Hieh Center

'»

units

1958 and studies are

svs' the Pasties industry. It will

acld' 01 ePoxy W8~

investment Co

co-

own selling organization. With 4,600 units
tjie approximate break even

rPDiar;ng the nresent tvoe binders
f.

the

an'example. XLVX""*™ *
600,000,000 gal-

ions of paint per year

SOlventS,

on

ag

taken'

are.

K 5raduwith a doc-

years ag0-

f
tors

tell

man—a

went

7U, M
the vih Manufacturmgr Chemists Assoc,aSemi-Annual
Meetings New York

'

20

"ur Vture It paint industry
the
produces about

might

college

Motors.

we

To those who

I

young

tor s degree,

industry has




where

hap-

'

Ih"

for

pessimistic

stoiy

just

y

■

many

miracles,

much

outlook
are

of

new

cerned^with

natural

Research
All

inHnsitrv

,

goods,

1956

1958

K4Ul ollTO>

X,ui^ Sg
of

in

?rre]s Pfr year»-all of which has

be maintained it
possible.

to

controlling

operating

m

of

come

not have happened
high without investors being willing to
utility. They have permitted and risk venture capital; and the excaused
the
development
of treme, rapid growth that we have
cheaper processes.
They, have witnessed in the last 20 years has
caused
the
replacement oL' old, been the result of the public's
that

:

$1 million

increasing its
load factor has been an additional
motivating force in managements
recent expansion and diversifica-

rc

Research

contribution

.

,lacimehc.Gregory a^ Wall Street,
have tion program
First proceeding
tc & Sons, 72
productivity ivith the

SPi^nt"cate'oTmany "mamTnew
suiiani saie 01 many, many new
h(1

that
that

pany

This

In
,

means
means

article by Carl Fisher of
Carbide,
the market will double and be-

.

the

at

through better utilization of already existing facilities, the com-

This
This

al-

earned, as far as I
concerned, have been the re-

ward

$1.90 expected in
improving sales obtain-

increases and

.Tourth. quarter of 1958 with

lias

underlying reason or principle of
operation that becomes a causa-

66%

the nrospnt. time.
the present time.

journeys into

the

gas

research

terrific expense,

that

a

capacity
present load reThe average annual
a

of

the many, many uses which
they
have made of chemical products

in

oe

earnings

mcrj

other dav. and I noted in the back
other day, and I noted in the back

taSsSSs lb'm sFy" ??e?<^ and to achieve
ehtgoals which I ami quite have
^®^
sure
?I1U pxuu
ap lead-ers in the
all leaders
industry

profits

?

iww

W' ^
mg rate

.

herited from Cities Service

Monsanto's

a

set for themselves

pounds per year.

Now, there must be

spend

1
niuney
V

share

per

^ fAn"!95^156 iz} I95-6'

investment trusts, several of which
were substantial buyers of Ark La
Gas common stock during the last
three
months.
1 Selling
at
25
utility earnings due to the (American Stock Exchange), about
10

cement plant will start production

that

To continue these

improve

non-utility earnings amounted to
$2.2 million against utility
earnings of $2.3 million.
Nonutility earnings should soon ex-

about

the

products to
We must

a

manaSementihgs been able

to

•

12

r„
Bv

never-ending

always at

si.onifirnnt
significant

lion

4-^:1

the next

ing

far

Requires Profits

Ten years ago we often talked
of products in terms of
50,000,000

organic phpmip.nl
chemical.

Further

area.

4-U/V

mark

tremendous building program. 1 have had the pleasure of
receiving a brochure concerning

wax

thes? only occasionally and almost

mid-1959.

oftheCompany over*the°onrtril- new'"earnings *from" the^cement
iion *CF

opportunities where, we can save
money for our customers by the

or

generally recognize..

nrfsnip

cw-ie

comes UP with such products as

of the industry
most of us

...

6100

owns

discoveries may bring gas reserves

.

are

„r

its

than

greater

pcx

research,
effort to
extend the boundaries of science,

With

iT.f1,1,!

1
segment

ucnis

pr0ducer.
Why?
ways
remember

plastics,
monomeric compounds, etc.
It is also
significant that.this growth iactor
=

and

surrounding the
5,000
additional

and

in

acres

ample opportunities
for the improvement of processes

•

high

be

petrochemicals,

Ano

icw

Certainly, such products have
utility, and certainly they should

it is apparent to many

this field has been

ti

amples.

entire chemical index.
think

ux

increase the yield of wheat to the
farmer by S2 to $3 per acre.
We
can
all think of many such ex-

been

I

w

CF

impoi tance,

-

company

discovery

to

going

the

acres

extieme

new
Ui

S

withtnH

^

of

s., ot

•

be able to operate at

were for

its have generally been above the

case

Donald K. Ballman

a

and

.

then

products are constantly
After all, research

new

mt

■

over-capacity

a

not catch up with capacity for a
period of two to five years
and that plenty of producers are
not

.

oeing created?.

side-

g a

re-

constantly

new

gas condensate

companie^ run from four have to "Perate^t. some mluced
Production of natural gas and
.i?i,*aS- much xJah wif0^h
t higher than the re- to affirm that the rlnssihilities fnr 'liquids has become increasingly
This is
toafJhimrtha.theimportant in the company's earnsearch expenditures of any other -the future are much gieatei than

are

in

been

very

major

articles that

are

has

that have utilitarian

uGmen
the many

with

and

.striving to produce

a

that,

I'm

.

heavily invested its profits in

industry, I think

mistake to look at it

a

short-term basis. But

of

in
in

are
are

that chances.are that demand will

-

.

we

are

Further savings of
havp over
nave over-pvnandpd and
expanded and

-

When

Lnrnqiann

.ose^vef

J.eseryes .oi

that

Looks to renewal of increased volume of

I

rapidly, since ' The plant should be-completed
by

wells

new

owned lmpoitant

nuJ

hp

of the

people

many

that" the

would

Security I Like Best

further rather

some

.

has over-grown, and that its
kets have been saturated and that
there is, thereforelittle future,
I

&& 2

.

crease

providing research and future growth is adequately
supported, and labor costs do not rise faster than produc¬
tivity. Mr. Ballman does not agree the industry has seen its
"heyday"' or will become essentially a heavy manufacturing
industry with minimum profits, which the short run outlook
of decreased profits and excess
capacity seems to indicate.

''

it

Continued t™™

«ee

that had

company

product and which
have
saturated
its

outlook

'.

.

a

single

a

9

(Special to The Financial Chronicle)

BEVERLY
rel
rex

L.
i_,.

Roren &

icn

HILLS, Calif.—Ter-

ruiuc
Knudson,

Co

is

previously with
now

with Amer-

ProfrramLntf Pnrn
Programming Corp.,

Camden Drive.

don

430 North

The Commercial and Financial Chronicle

.

Thursday, December 26,1957

.

.

(2818)

10

have to build them himself.
not, he will have

may

More often than

An American Oil Man Looks

keep

At Oil Here and Abroad
By ALBERT L. NICKEIlSON*
President, Socony Mobil Oil Company, Inc.

balance

Socony Mobil Oil head states oilmen must

whole

construct

to

in

United

the

years.

States, drill¬

ing a well may be expensive, but
Bakersfield, Casper, and MidlandOdessa seem to have built them¬
selves.

imagine,

whether

standing interests which we have

factors

are

here

doubt

to

as

our

knowledge
for

oil

breadth

and

United

the

of

is

States

been what you

In the

of factors tending to
oil

invest

to

man

influence

an

dollars

in

his

Sumatra,
Far

Markets

then,

didn't

attention

the

to

turned

way, we

Middle

our

East

to

Before

World

War I

made

we

an

of little value to

./-•

attempt to find oil
vicinity of the Dead Sea.
first serious involvement

the

Our

in

Middle- East

the

World

War I.

the

afraid that the United
about to

markets,

out of oil.

run

extensive

our

overseas

be¬

responsible Amer¬

many

was

With

that period,

In

great mid-continent dis¬

were

States

after

came

network
were

we

of

espe¬

discuss certain

like to

would

I

and Socony set up
owned Standard Vac¬

Company

of the
all in the

that concern us

factors

relationship
oil

between

producing
the

inside

States

United

oil

and

pro¬

out¬

ducing
side

our

Every

pro¬

ducing com¬
pany, what¬
ever
its size,
and

i
L.

Albert

Nickerson

oil
engaged

every

producing,

n

faces

one

Where

able dollar be most

in

vested

the

each

can

cen¬

economic

tral

question:

avail¬

profitably in¬

search

for

the production of oil?

of

most important
these is safety of investment.

oil

and

We all face

this

the

suppose

"Producing money" is risk capi¬
as all of us know well and,

tal,

often to

oil

makes

he

country,

But when an

sorrow.

our

man

in

strike

a

this

be virtually cer¬

can

tain that his investment won't

be

expropriated. History should have
proved to all countries that ex¬
propriation doesn't pay, but it re¬
mains

country.

man

I

the

in

Far

Stanvac
hoe.

Just

the

as

of

its

assets

effort,
been

the

levels,

war

but

risk

a

An oil

abroad.

his

investor must face

an

hope that

can

man

property in this country isn't

going to be destroyed in war, for
although new weapons leave no
area of the earth safe from attack,
we can surely hope that humanity
will avoid a major war. Abroad,
however, there seems to be a per¬
manent risk of changes in politi¬
cal attitudes

caused
"cold

and of smaller wars,

either by flare-ups

war,"

which

have

may

question.
The venturesome
independent — one of the great
figures in the history of American

unsafe

rugged individualism—makes this

finds oil.

decision

ploring in Italy have run head¬
long into the roadblock of the

time

every

he

ponders

whether to extend his lease hold¬

ings

to

other

sections

within

an

where he has been operating,
to
branch out into

area

whether

or

some

In

new
our

wildcat

Investment

overseas

before

even

prove

may

an

oil

man

American producers ex¬

producing

government
there.

Investors

countries

in

felt

have

company

some

that

other

govern¬

ment

area.

company we are

engaged

untested

and

red tape kept them from
getting full value for their ex¬
ploration dollars. Certainly, safety

which

areas

look

geologically attractive outside the
believe

We

to

that

in

oil

find

the

increasingly large quantities
necessary to supply mankind's de¬
mand and to provide it at costs
competitive with other sources of
energy,
we
shall have to look
abroad

and

more

im¬

An

more.

portant allied factor, that is turn¬

ing

thoughts

our

shores

is

aware

fact

which

of

the

—

increasing

You

cite

to

the

of

cost

finding oil in this country.
need

I

all American oil men are

sure

am

hard

a

foreign

toward

figures

I don't
to you.

know them.

oil

for

The

growth

Europe

than it

growing.

even

faster

in

here.

Oil

C

Petroleum

However,

must

be

is
is

produced

to

Company.

Middle East looked
the

American
to

access

oil

desirable that
should

interests

have

much of this strategic

as

few

gloomy and

the

actually entered

14

good, that only five of

the

ven¬

the terms of American

ture when

participation

finally agreed

were

in 1928. Three of these dropped

on

out

inside

six

Only two,
Socony and Standard of New Jer¬
sey,
remained as the American
participants.
years.

For years we

kept sinking more

and more money into our
The pay¬

Middle East investment.

out—which ignores interest on

capital
to

the

stretched out
than 25 years after

invested

1955, more

—

The

invested.

was

Company is now

enterprise,
but
I
hardly think any of us would vol¬
unteer to invest heavily today in
a
venture half-way around
the
profitable

a

world which

out for

pay

telling factor in deciding an
individual or a company whether

possible. It is primarily to
this country that the free world
looks for the defense of its rights

international level. We try to con¬
all the factors involved in

to drill in home soil

and its freedom.

the pay-out

each

here

knew would

we

over

not

quarter of

a

a

century.

in

constant

a

such
on

decisions—on
national

a

of

process

making

local

a

level,

and

level,
on

an

is

instance,

and

to

make

de¬

your

own

systems, formal

in¬

or

or

abroad.

A

second,
in

the

but

related,

United

States

factor
is

the

opportunity to deal, for the inost
part, with private individuals in
negotiating
for
mineral
rights

formal, for weighing factors and

rather

making decisions. After all, in our
industry, the largest companies

Private parties

than

with

governments.
negotiating a lease
are equals.
A company negotiat¬
and the smallest are affected by
ing a lease with a government is
much the same factors.
In the on
anything but an equal footing
search for oil, we are in the same with a
sovereign power—and al¬
boat.
most no foreign governments vest
Our company invests most of its the sub-soil mineral rights in the
producing dollars right here in private owner of the surface land.
the United States. We have been A
sovereign
power
certainly
engaged to some degree in the should be true to its word, but
search for overseas oil for more the, history of mankind is studded
than
40
with
years.
Yet
this
examples of
governments
year,
chiefly because our largest mar¬ that have proved faithless in mat¬
ket

is

are

of

here

in

the

U.

S.

A.,

we

spending half again as much
producing budget at home

our

abroad.

as

health

of

Our

the

interest

American

ducing industry is
deed."

very

in

oil

the
pro¬

direct in¬

ters of contracts.

An

oil

man

or

in

the

investing
knows
it

where
ists

an

oil

be
a

and

right

company

United

that if he makes

will

in

a

oil

in

this

country grow
greater with every passing year.
This difficulty affects us
all, large
and small.
It seems significant
that some companies which
pre¬

viously concentrated their efforts
in

the

United States

He

knows

also

the

uses

55%

of

the

that

his

property

roads,

railroads, ports and ships,
telephone and telegraph sys¬

starting

tems.

An

are

Investing in Domestic Oil
What

are

the factors involved,

and in what ways are they
chang¬
ing? Let us consider first those

factors which tend to influence
oil producer to invest his

an

"pro¬

*An
the

address

American

cago,

by Mr. Nickerson before
Petroleum

Institute.

111.




Chi¬

companies

choose

creasing

amounts

study"

\yhy so many
to invest in¬
of their pro¬

ducing dollars abroad, and what
happens when they do.
As our
"case,"

would like to use the
company whose history
I know
best—Socony Mobil.
From the
brief

a

picture of the nature of such
You

ventures.

for

in¬
money
in

see,

investing

that

stance,

will

the search for oil
cry

various over¬

of our

story

investments, I think you will

seas

get

I

is

abroad

from putting nickels in

machine rigged to pay off.
times
our
ventures
have

far

a

a

slot

pros¬

Often, however, they have

pered.
return,

or

have worked out

by

assured

as

a

our

desire to have

an

supply of crude for our
marketing activities.

own overseas

Both of

principal predecessor

our

firms, Socony and Vacuum,
involved

traditionally

in

were

selling

oil products in distant parts of the
world.
The supplies originally
as

from this country.

1913

we were

As early

making

an

effort

to find oil in what is now Poland

important and related fac¬

tor which any investor must con¬
sider is the size of the stack of

chips he must lay on the table if
he intends to start
exploring, and
producing in unexplored territory
abroad, and particularly in un¬
derdeveloped countries. His well
costs will be but a minor part of
his stake. In areas where there are

in

order
of

source

to

provide

supply for

a

our

reliable

European

World War I put a stop to

sales.

drilling

in

Europe,

but

we

re¬

after the Armistice, not
only to Poland, but to Germany,
Austria and Spain as well.
In
more than 40 years of searching
in Europe, we have never dis¬
covered enough oil to supply the
local needs of our marketing out¬
turned

no existing
roads, pipelines, ter¬
minals, and harbor facilities, he lets.

on

vested

point

our

was

reached,

out with

come

a

we

better

capital had

say,

we in¬
that time in,
Texas rather than in the Mid¬

dle

East.

our

money at

Since World War II the growth
demand

of

for

in

oil

been tremendous

as

Europe has

the industrial

countries have shifted away from
a
coal-based and toward an oilbased economy.

in the

sion

East

came

We

acquired

an

American

—Aramco.

The

In

addition,

some

of

our

their

production of the

pre¬

production

described as a
return on our in¬

Stanvac

has

been

at

chiefly in Venezu¬

ela and Colombia.

Our production

in

climbed

Venezuela

ily,

is

and

has

finally

on

stead¬

paying

a

basis.

In Colombia, on the other
hand, we have found so little oil

that

have

we

substantial
the

over

yet

Taken

to

as

years.

whole

a

the

recover

have invested

sums we

past 21

our

foreign

investments have been profitable,
some
of them very
satisfactorily
But

so.

there

have

disappointments.
have

involved

pared
fold

abroad

face

to

risks

many

these,

losses

stantial character.
venture

been

Of

of

No

who

is

sub¬

should

one

losses.

some

a

not

The

pre¬

mani¬

involved

explain why
producing
ventures
abroad, even when carried on by
very
large companies, take the
form of partnerships or joint ven¬

so

many;

tures.

Anyone venturing abroad should
also

remember

that

it

is

enough merely to find oil.
oil

brings a
sold, and it

profit

only

not

Crude

it

if

is

sold

be

only if
Develop¬
ing large markets requires time,
experience and capital.
At" a
there is

can

market for it.

a

moment like the

present, when oil
capacity around' the

productive
world

is

,

least
temporarily
demand, the com¬

at

greater

than

petition

among

tense.

marketers

is

in¬

I wonder how many of the

producers

looking

outside

their

countries for the first time—

own

don't

mean

only Americans

—have the marketing problem in
mind. Those who have not thought
it

through

be in for

may

a

rude

awakening.
What Should We Import?
The

of foreign oil in¬
brings up the question

subject

variably
how

of

much

crude

the

United

States should import, at the pres¬
ent time and in the years

interest in the
Oil Company

great

their

Our investments in Latin Amer¬

in

marketing facilities in Europe.

to

be

ica have been

Our great expan¬

Middle

anticipation of this growth in de¬
mand, and of the parallel expan¬
sion
of our manufacturing
and

Arabian

hardly

and 1

Allied

with

question
how

is

the

this

to come.

controversial

another, concerning
level of imports
by the free

proper

Iraq Petroleum Company, at long

should

last, grew rapidly.

inter-play of economic factors, by
a voluntary program of limitation
of imports, or by a system of lim¬

We became a

member of the consortium in Iran.

dictated

came

return

Sbme-

In nearly every case up to now,
our search for oil abroad has been

from transportation and commun¬
ications
facilities — pipelines,

put their dollars into the search
for oil in other countries.

to

examine

net loss.

generally will be not far removed

and

"case

the

use

States

difficulty, and consequently world's oil products, with longthe cost, of finding large
quanti¬ term demand growing ever larger.
of

us

strike,

country
ready-made market ex¬

which

Let

method to

failed to produce even a moderate

The

ties

In fact, I suspect that,
considering the long delay before
could have

sider

cisions accordingly. I'm sure that
all of you, too, have developed

a

as

the

moderate level.

country

this

so

the first dollar

seems

so

in

prospects

Iraq Petroleum

It

next

looked

turning, and indications are that
it can't be produced in sufficient
quantities in this country to turn
all.

the

over

keep the wheels of the free world

them

Em¬

the prospects for oil in the

years,

money

the world, demand

over

is

Turkish

the

been

Fourteen
American firms
originally indi¬
cated a willingness to invest in
the enterprise, now known as the
Iiaq

inside it.

States than

United

All

activities.

Communist

with

in the

disturbances
nothing to do

by

or

a

had

ended,

With

back

American

what

war

there.

The

pire in the Middle East.

com¬

§umatran fields have

brought

in

pean

were

China, which cost the company

all

bonanza.

argument for
looking abroad for oil is simply
that there are more unexplored

and

Communists began their conquest

vestment

telling

to

row

fields

during World War

overrun

State asked for volunteers among

most

hard

a

producing
its markets

of

many

pletely
II.

has had

Its

balance.

the

over

East, Australasia, and

could

companies to join Euro¬
interests in an enterprise in

take

South and East Africa.

cially eager to find foreign sup¬
plies. In 1922, the Secretary of

And, as safety is by far
the most important single influ¬
ence toward investment at home,

to

complementary producing,
refining, and marketing facilities

country are
others which
weigh on the opposite side of the

ducing money" here at home.

abroad,

market is

a

the producer. In

Jersey
Oil

this

aspects of oil operations
and then to review some

outlets.

on

their

unsuccessful
in

sales

come

platters
more than they do now,

any

1933,

same

but it had insuf¬

Eastern

and crude oil without

uum

find oil for our overseas markets.

icans

Lined up. against this collection

in

the jointly

coveries,

v

could call

spectacular.

r

Looking Abroad

and loss of freedom
commencing with tariff or quota protection. Hopes present
voluntary import program is but a short-term measure.

effort in this instance

our

has not

fore

tradition.

our

needs, and

capacity to supply future domestic

that

is here

It

reservoir of
skill.
Searching
the
length and

across

part of

of entangling web of restriction

warns

America.

in

many

of long¬

range

have built up our

we

supply it at costs competitive with other sources of energy,
increasing costs of finding oil in this country, as against the
risks and costs confronting producing enterprises abroad.
Mr. Nickerson foresees greater need for imports in expressing
to

tal and

our

company, and, I
others is the wide

to

ficient

as

Cites Middle East Experience

peting factors

against each other in making the decision
invest producing dollars here or abroad.
Such
said to include foreseeable demand for oil, ability

oil

in Eastern Europe,
confiscated by expropriation.
On
balance, our return on our capi¬
or,

war,

V; /
affects

Another factor that

many com¬

and

—

for

operating

them

Here

towns

properties have been destroyed by

Long-term contracts assured us of
a

supply of crude from the

tiny

attained

be

—

sheikdom of Kuwait. Of these Mid¬

itation through government regu¬
lation, either on a quota basis or

dle

under

East

went

to

supplies last
countries

year,

in the

94%

Eastern

Hemisphere, nearly all to be mar¬
keted through our own outlets.
Only 6% for specialty purposes,

imported into this country.
now getting a good return
heavy investment in that
troubled part of the world, the
Middle
East, but it has taken
many years to reach this point.
was

We
on

are

our

The

story

of

our

activities ' illustrates

Far

Eastern

even

more

graphically the interdependence
of producing and marketing op¬
erations. Our marketing interests
in this part of the world go back

a

familiar
lent

tariff.
with

talks

meeting

You
the

are

probably
excel¬

several

delivered

at

the

IPAA

last

month, which dis¬
cussed this question frankly and
clearly. I do not want to take up
your time
here today by going
into the details of
the

present

our

position

arrangement

for

on

the

voluntary

limitation of imports.
only wish to say that, as in the
past, we have agreed to cooperate
with
the
Governments request
that we voluntarily limit our im¬
I

ports.
We

aware of the posi¬
hold on the question
before the turn of the century, of imports. We think we under¬
but through the ,1920's they had stand the point of view of, let's
to be supplied from the United say, a Texas producer, faced with
States.
Jersey Standard, after a 12-day producing schedule. To¬
some years of exploration, found
day he cannot look without strong

tion

are

well

many

Volume

186

emofion
be

•

Number

what

on

5702

.

.

The Commercial and Financial Chronicle

.

to him to

seems

unnecessarily high volume
foreign oil imports,;
: *
.

•

But let

for

oil

est

j going

to

omists
in this

us

moment try

a

consider

of

schedules.

gest

to

I

like

would

to

that there are many
The importation

you

than

Where

year.

Naturally,

factors involved.

in

The great-

the

world

absolutely essential to us.
One
thing that could lead to public
utility .status. for ("our
industry
quicker than anything else would
be our inability to meet demand
in this country.
In the face of
these factors, we would be im-

is

Econ-

estimate that by 1967 we
country will be using 40%

oil

more

sug¬

production.

market

to grow still greater.

dispassionately the causes
tightly
restricted- producing

•

-

to

serves

an

of

we

the

using

are

will

it

tightly

this

from?

come

prorated

prudent

domestic

producer hopes and inof oil is, of course, one of them. \ tends that a large
share of the
Some others are of considerable increment should come from his
wells.

•importance.
'

\

in

should.

But

to

many

think

The

that

natural

gas

about four billion barrels of crude

con¬

if

country in 1947 ancl

being

of

natural

•

from

same

the

well.

.actual

a

of the tremendous

natural

gas

.

is

shot.

world's

I

world's

can

these

in

of min¬

the

with

well

the

for

moving

of

has

off.

leveled

The

a

share

its

crease

of

factor

another

which

warming
trend
been going on for 50

tinent

not

does

to

seem

the

This fall in New York,
have had a num¬
ber of days almost as warm and
beautiful as one expects to have
at this time of year in Oklahoma

;

or

in

a

,

10

winter

a

emergency

to

not

use

up

this

I

think

supply.

we

can
join
in
hoping
that
the
.weatherman's
prediction
of
a
brisk winter ahead wih be borne

out.

In

to

Supply

Long-Term

mentioning these

While every busi-

of

none

in

us

the

oil

not remind

of

you

supplying

that the

energy

is

competitive, and growing
so.
During the past
great strides have been
in the development of nu¬

Every time oil goes
up
in price in relation to coal,
coal supplants oil in some sections
the

of

A
-

form

of

shale-oil.

me

competition

that

it

It

does

would

not

be

in

interests of the national
to

at

which

eventually enter the market

may

is

market.

energy

force

of

reserves,

other fac-

any un-

clear energy.

ment

Limits

the

over

more

made

had

have

.

:

even

Grandfather re¬

we

cars

promise in the
19 million" new

to

one

from

motion

of

models

new

strong stimulus to

ing for
Of

new-car

months to

many

thing

one

will

we

solutely certain.

a

matter

of

great

interest

to

an

It seems to

that even when

civilization.

our

one

we

And

take satisfaction

can

in doing well.

The

United

Illuminating:

Com¬

recently completed a
private placement of $10 million
arsenal for
[of Thirty-Year 47/8% Debentures,

our

our

abil-

1987

Series.

state.
on

study

a

facturers

The proceeds will be

the

of

bulletin covering industry in the
The survey which is based

a

has

pany

total

a

of

4,000 state

estimates
about

of

that

manu¬

there

,

,

the

this

,

•

provide

with

still

a

other

in

find oil, and while
ing together with
tions as the API,
provide

that
In

the

you

the

are

such

us can

conservatively estimated

100 billion

barrels.

an

in

build

and
wind

hour

connection

a

tunnel
with

work for the Air Force.

meet-

designed

conditions

flight

of

-

2,500
to

be

one-half

and

Air

sound.

do to "see

prices

around

the

to

peace,

prosperity, and freedom.

meet

the

growing demand for energy constitutes a step
toward victory in the fight for

-—

—

#

„

Chemical

»*»

%

at

The Hamilton Standard Division

stimulate

to

altitudes

of

of

times

the

in

speed

accelerated

be

speed of
the tunnel

from

zero

changes.
stalled

The tunnel will be
the

at

Air

$410,000

1958.

Aircraft

plant

Windsor

to

main

Corporation

its new
Bradley Field,

at

adjacent

Locks,

its

to

Division's total
•plant space in Connecticut is now
-about 1,750,000 square feet.
The
new plant will be devoted largely
to development and production of
fuel controls for turbine, atomic
and rocket engines.
As a result
of
aprogram
of diversification

in¬

Force's Arnold

Tullahoma, Tennessee, early

6

United

has opened and dedicated

-Engineering Development Center,

—

Continued from page

Mathieson

.

The wind

2,500 m.p.h. in seven seconds and
a special flexible air nozzle
per¬
mits simulation of rapid altitude

economic

Olin

an

Company building in New Haven.
Soundscriber employs about 250
persons in its new $1 million
plant.
; ■

research

at

in

plant.

The

m o r e

than

turbine

.

—

the

of

50

nations

'

tjs

.

What Lies Ahead

A

Automobile Industry?
and

this
in

same

of

October.

Census

Bureau

labor force showed

number

there
the

were

fact

of
a

report

increasing

ent

The

the

firm's

backlog

of

the

newly

people at work

in spite

one

or

and

more

Standard's

jJ;

#

❖

Hardware

American

The

Cor¬

poration has established the terms
of
its
offer
to stockholders of
Savage

Arms

Corporation. Each
will be of¬

shareholder of Savage

designed

fered

one-half share of Atnerican

.

Development
recently issued

Connecticut

The

Commission

has

the terms of the offer and may ac¬

The de¬
Dec. 27.
its affiliate, B. S. F.

cept up to 250,000 shares.

posit

period

American and

expires

presently

Company,

own

about

100,000 of the outstanding 766,834
shares of Savage.

;

I

LT~

'

T

.

•

%

■

Primary Markets in

;

CHAS.W. SCRANTON&
Members New York Stock

CONNECTICUT

CO.

Exchange

New Haven

'

-

"

essential that we remember
how much more oil will have to

turning the spigot at
venience.

our own con-

We have to accord

fair

in the face of increasing. play to overseas oil at-all times
the United States, if we are to have any assurance
Digitized to maintain a healthy ratio of re¬ of being able to get it when it is
for FRASER
be found,

-

demand here in



-building, and the current high
consumer spending,

e

Good Auto Year Ahead
There

are

good

reasons

for be-

lieving that the automobile indus¬

of

non-

propeller products.

of

1

government,

use

now

HU2K0 1
utility helicopter, a plus $7.50 in cash for each share
single wing rotor plane powered .of Savage. American will be
by General Electric gas turbines. bound to accept 100,000 shares of
In addition to various other heli- Savage if deposited according to

that

vestment in

aircraft

powered

Hamilton

employment of 1,355 workers.
new
contract covers proto¬

types

on

about the

year ago,

missiles

million

$33 million and indicating a prob¬
able future increase in the pres¬

main¬

was

$13

unfilled orders to a record high of

kind of balancing has
place in employment. The

latest

as

level

'

same

taken
the

record

sji

-

Navy contract
for helicopters has been awarded
to Kaman Aircraft
Corporation,

For Business and

Production

requires great capital in-

in

90,000'feet and-at speeds of three

any-

world

of oil from shale has been techni-

oroducts

,

'

is

tunnel

associa-

sense,

Division

Corporation

can

The

oil

to

helping to
in the form

larger

designed

mile
used

Boat

Dynamics

that enough-oil is made available

tained

shale

field

General

has

are

means

thing that each of

to

economy

.

both while

men,

Electric

The

of

possible.

means

out competing vigorously

each

of oil.

flood

greater

by every
producing

are

best

seem

the

premature- develop¬

country's

■

we„as an

It is

is

million

167.5

'

"

a

Connecticut Brevities

out-

plants. In this respect; - The fact is that our economy
me,-however,*
it is more of a manufacturing than
has become remarkably diversiindusa
finding and producing opera- * l'ied, and because of the increased
try, feel harassed by the necessity
tion, and this is quite different' variety and diffusion of economic
of restricted producing schedules,
from the conventional crude oil- activity we as a country are betwe
must keep our eye on the
;
business.
- <. ~
,-ter able to adjust flexibly to cutlong-range prospects of our inAdditionally, America's oil de- ~kacks in key sectors.
dustry. Looking ahead, I foresee
Other reasons for looking fora great question whether the
do- marid will increasingly requireto S°bd business in the year
; mestic producer will be able to imports from abroad even if we*'
^
rec^n^ ;l°wel^D£
supply the growing U. S. market increase our finding rate rather
WeFederal Reserve discount1 ate,
for oil
if imports continue in¬ considerably here at home.
e anticipated high
definitely to be limited on their cannot retain access to foreign oil
on
an
on-again-off-again basis,- constructionincluding highway
present basis.
you.

;

is

it

If there is going

'

is

of

This is your job and my job.

J

•

preservation

buy¬

come.

'

'

as

merchandising-^di.str.ibution-—
marketing—is essential to the se¬
curity of our country and the

a

factory employcopter projects the Company - is
-production levels in this country cally possible for some time; a sub-, ment was somewhat lower. This
has
been
more
than /doing subcontract work in the jet
don't have a very close relation-- sidy for shale, or tariff or quota* reduction
aircraft and electronic equipment
ship to oil imports. I recognize protection for crude could make: compensated by new jobs-in reit competitive.
The transforma-. tail and wholesale trade, finance, fields.
that the amount of crude imported
ije
:'t
sis
tion of shale deposits into useful; services
and in state and local
''in the final quarter of this year
tors, I do not mean to imply that

mar¬

of

pro¬

all be ab¬

can

the

Seen-in-this perspective, the job

con-

be

is

—

strength, and more resources
base for military security.-"

on

those in the

we believe that the
heavy industry-wide

tinned

•

,

tliree-year-old .class. .And

finally,
•

normally traded in

it

more

using the word in its
broadest
meaning — who holds
the prime responsibility for keep¬
ing the country on the move,
driving it ahead toward higher
living standards, greater economic

bought in the last

come

and

"

that such

me

decade,

On the other hand, for
now

years

need

highly

change,

winter—the sort

such
,

I

peculiar position.

members.

keter

t

you

understandingly
wants
price he can get for his

business

Dallas.

climate

see
over

work.

our

More

iused to repay bank loans, which square feet of floor space occupied
of the
amounted to $5.2 million on Nov. by
industry, of which 49.1 million
earth how they can raise their
12, and in connection with Com- is location in New Haven County,
standards of living while mainthe largest amount in any of the
pany's
construction
p r o g r a m
taining their freedom.
The key
which for the period from Nov. 1, .state's counties.
On the average,
ingredient for this demonstration
J 957 through Dec. 31, 1958 is esti¬ industry
provides one parking
is low cost energy,
mated to amount to $10.7 million, space for each 1.9 employees.
During the past century, the oil
*
sit
Si
S"
.including costs of completion of
industry has proved that the apan
electric steam generator
at
Soundscriber, one of the leading
plication of inexpensive energy
Bridgeport with an estimated cap¬ 'manufacturers of electronic dictat¬
can
improve
living
conditions
ability of 82,000 kilowatts.
In ing and recording
around the globe.
equipment, has
If we expect
April of 1957 the Company raised moved into its new 55,000
square
to counter with real progress the
.about $6.8 million through sale of
foot plant in North Haven.
The
false hopes which Communism of■Common Stock.
Company formerly occupied space
lers as its stock-in-trade, we must
energy

business wants to do anything that
will price us out of the market.

In relation to this
the oil industry
As re¬
sponsible businessmen, we must
keep on hand supplies sufficient
to handle the coldest imaginable
City

best

product,

stopped.

is

look

of the other

the continuance of

nessman

have

.for instance, we

•

however;

climbs

petitive limits.

the North American con-

years on

can

point

duly stringent limitations on imports would tend to increase the
price of oil beyond healthy com-

The

has

I

their

some

may

solution,

a

involved

demand

years,

the

is

irrtports

on

such

us,

moment at

As

market.

Still
weather.

to

in the "cold war" is

You

national

the

mer¬

;

Considerations to Weigh

try today is fighting hard to in¬
i energy

than

now.

circumstances,

Let

considerations

indus¬

coal

less

are

1967

problems

understand

view.

for

product. After 10 years of a fairly
steady decline,
coal
production

'

like

the

certainly

its

these

to

sound

Under

experimentation

pipeline

a

to-

1957, in which they
by so many difficult
What they want is a

problems.

research-minded

its

of

inevitably
"

seems

use

year

beset

are

have given him

new

of the

tremendous

is

thousands

.

year

in

A strict limitation

is

take

many

interested

the Fountain
An example of the coal

outlook

demand

potent weapon in

fifth

a

questions,

long-range

Understandingly,

strong, dose from

industry's

It

reserves?

producers

many

the past few years

.

of

obsolete..

search

produce

from

total

solution

of Youth.

The

measure.

of

going to render such restrictions

reserves

to

oil

ing and more efficient means of
transportation and consumption in
a

growth

.ity to show the people
imagine the attitude which under-developed nations

good

ward

long

a

term

addi-

the

:

also

new*- cars

Let me suggest, therefore, that
the present voluntary import restriction is necessarily a short-

aver-

We

have been

path

essential

.

in

three years. This, is
encouraging,
because a very large proportion

Hopes It Is Short-Term Measure

,

.

a

by

the

the

of

Old King

dead—not

not

if

even

-

,

country is successful

indefinitely

increase

Improved methods

1958.

cars;

credit

position to take

a

installment obligations in

new

facFthat well

expectations of most look on the future fits into a gengeologists,
the
$64,000
question oral philosophical view in which
will still remain, in substantially .energy
is considered to be the
this form: Is it in the national hope of the Free World. The most
interest

By the same token, the revival

.Coal

on

the

half

production.

the demand for oil.

crude

Our

hundreds

chandisers,

into

installment

<

1955. will be in

tangled web of leg-

a

spending at high levels for
goods and services, you and I and
advertisers, salesmen
and others engaged directly or in¬
directly in selling are going to
have to pull out the throttle and
put new power and effectiveness

been

first-* step> will have
down the primrose

islative restriction.

production,
increase
of

billion

one

of

And

year.

beyond

.of the coal industry has an effect
,on

nearly

barrels

for oil in this

gas,
often
The loss of

potential income into
.one pocket has been partially balanced by the gain in the other
pocket. If oil production has not
.grown
as
we
all
might
have
t wished,
it is at least partly be¬
in

to

reserves

or

tional

or

cause

of

age,

3,000,000 barrels a day.
But most oil producers are also

producers

retain

freedom will have been lost.

present

our

represents
an
about 30% over the 1946-56

most

't

maintain

to

are

This-

,

•

we

ratio

consumed in 1957 is
the equivalent, in terms of energy
fcontent, of a little over one bil¬
lion barrels of oil a year, or al.

thus

and

the

that ends in

.

of

that

taken

.

amount

demand

big offsetting stimulus to

a

sumer

automobile

will

We must be able

government's paternalistic interest will stop there,

.

sumed in this

meet

automobile

of the .tremend-ous number of
peo¬
ple who contracted for long-term

access

we

record,

credit
carried
contracts for pe¬
riods of from 30 to 36 months. This
means that a very
large porportion

,

the

.

the

our

the economy as the result of con¬

year in
It has been three years since

all-time

year, 1955. And in that year 57%
of the
cars
sold on
installment

our

past 15
-years, and it shows every sign of, crease ip demand on a sustained
continuing to climb.
Instead of basis. During the past 10 years,
domestic
oil
supplying 14% of the nation's en¬ the
industry
has
ergy, by B.T.U.'s, as it did in 1947, found an average of 3.1 billion
'it is now supplying 26%, Most of barrels of crude oil a year. If de- '
'.this
growth has cut into oil's mand increases as expected in this
actual or potential markets.; The country, American producers by
1967 will have to find .annually
annual difference, in fact, between
gas

jeopardize

eventually need.

to be

1958.

the

economists

great growth of the use of natural
gas.
The consumption of natural
tripled

it

to

the foreign oil which

to

11

try will have another good

right to operate as free, cornquestion the possibil- ' petitive enterprise,
ity of American producers finding
And, finally, if tariff or quota
reserves of a magnitude sufficient
protection is afforded our industo
supply this tremendous in- try, by the Congress, let no one

There is, for instance, the very

has

And

(2819)

'SECURITIES

New York

Hartford

—

—

REctor 2-9377

JAckaon

7-2669

Teletype NH 194

The Commercial and Financial Chronicle

(2820)

12

.

.

Thursday, December 26,1957

.

I

tant

second

step

the road
But this

on

towards European Union.

Euiope and Atoms for Powei

challenge each of
poses of limited,

nations dis¬

our

but* important,
In the first place: Sci¬

plan raised too many passions of resources.
the past to give victory to the entific ability. Our scientists made
Its final defeat, in 1954, fundamental contributions to the
was
more
spectacular than the discoveries on which nuclear
quiet and gradual progress of the power prospects are based. If they
have taken little part in the in¬
forces unleashed by Europe's first
experiment in Federal union: the dustrial application of these dis¬
Coal and Steel Community. Many coveries we believe that this is not
because the creative spirit is lack¬
observers outside, and even inside,
the six nations did not notice the
ing in Europe, but because none
of our nations separately is ca¬
groundswell of public opinfpn,
which made it possible for the pable of offering our scientists the
governments, within a year after facilities they need.
the defeat of the European Army,
In the second place: Industrial

By MAX KOHNSTAMM*

future.

Secretary General of the Action Committee for a United States

Secretary General of the High
Authority of the European Coal and Steel Community. One of
of

Europe;

leave

on

now

as

Euratom."

the drafters of "A Target for

Exploring the questions as to Europe's reasons for creating
Euratom, and what can be expected from it, Mr. Kohnstamm
asserts understanding of situation lies in framework of postwar
economic and

political events in Europe. Sees Europe's energy

problem, which he maintains must be fully shared by the
United States, as becoming constantly more serious. This he
ascribes to the Western European countries' dependence, in
with its difficult

presidency of M. Spaak,
charged to study the setting up
of an Atomic Energy Community

on

Speaking of "Europe and Atoms
for Power" two questions, it seems
must be put and, if possible,
answered. In the first place: Why
is JJiUrope cre¬

prevented disaster, it was the first
peacetime realization of a soli¬
darity, which, until then, had only

ating Euratom,

manifested

the

in

d

in

expect from it?
In trying to
answer

cj u e s

ti

shall

have

talk

a

b

you

t

and

of

nations.
immediately

European
Plan

brought, together with great real¬
izations, nevertheless disillusions.
Undoubtedly, trade was liberal¬

to

"Atoms for

ized to the

Power." But

Max Kohnstamm

friends

captured Europe's imagination as
a symbol of hope and change.
But
the O.E.E.C., to which it gave rise,

to

which
seem
to
scarcely

relevant

the

Military Government, into

Marshall

The

things
may

upon

between

circle

the

I

o u

of

introducing Germany, be it
the disguise of the uniforms of

Allied

these
o n s

coalitions

in

foes,

it

does

itself

trespassed

boundaries

second place:
What

It

war.

But there

enormous

benefit of all.

litical events in Europe since the

beginning of the
necessary change of structure. Na¬
tional sovereignty, the basis of the
structure of a disastrous past, con¬
tinued to be the supreme rule.
1950 found Europe at the cross¬

war.

roads.

I think
we

that if

want to understand the situa¬

tion,

look

must

we

framework

it

at

economic

of

in

the

and

po¬

no

was

The German

knock

at

the

general remark: I am door could no longer be ignored.
talking about the six nations Either Germany should be given
which, since 1952, have together a full place in the European circle
formed the
European Coal and of sovereign states or full sover¬
Steel Community and which are eignty itself should cease to exist
now
setting up Euratom, or the within that circle. M. Schuman's
European Atomic Energy Com¬ declaration of May 9, 1950, saved
munity, and the General Common from extinction dreams dreamed
Market, or the European Economic in dark years of oppression;
Community. If, when talking about dreams about new forms of living
these six nations, I call them "Eu¬ together, about a new structure for
rope", it is partly because nobdy Europe. It gave these dreams the
would continue to listen to me if
lOlid, rather oedestrian basis of
I had to say all the time:
Belgium, coal, steel and sorap, of -material
France, the German Federal Re¬ interests, ci eating a very material
public, Italy, Luxembourg find the and real solidarity. Let me try to
One

more

Netherlands.
these

cause

But

six

it-Ts

also

nations

are

summarize the history and results
of the Sehuman Plan, which be¬

be¬
con¬

vinced that, in building the "Eu¬

the European Coal and Steel
Community.
came

of the six", they are at the

rope

time laying the foundations
the larger Europe of their

The Sehuman Plan meant

same

of

olute

dreams.

turning

towards

away

res¬

a

from the past,

the future.

It refused

to

first

one

horrible then

more
—

these

all

and

events

immovable

a n

d

our common

known,

realize

defeat, which we all
made

many

of

problems to be dealt

according to common rules
applied to all by common institu¬
tions.
During its past five years
of existence, the Coal and Steel
Community proved first that Eu¬
ropeans are
capable of working
Federal institutions and, secondly,
that industry, in none of our six
countries needs tariffs, quotas,

heritage. The agonies

of hatred and

common

with

separate our six nations form each
other—and form, at the same time,

have

of

United

which

us

States

all

the

Europe, of
major political

parties and non-communist trade
of the

unions

nations became

six

The

members.

of the

defeat

Eu¬

proved to be only
an
incident, while the current of
opinion
in favor
of structural
change
gradually
gathered
strength. Out of M. Spaak's study
Army

ropean

group grew

the Intergovernmental

Conference

Brussels.

at

Action

Monnet's

In

Committee

M.
Eu¬

and trade union
leaders found unity of purpose,
The Brussels
treaties, providing
for an Atomic Energy Community
and a European Economic Com¬

political

rope's

munity

the lines of the Euro¬

on

and

with

these treaties.

The Benelux

coun¬

public opinion had
often been in advance, preferred
where

tries,

this time to wait for France's and

In the Neth¬
erlands, the Second Chamber has
already accepted the treaties; Bel¬
gium and Luxembourg will do so
immediately after the end of their
parliamentary

few

A

in

early

holidays,

November.

months

from

both treaties will have begun

now

Method

Solving

for

Economic. Political Problems
•

t

,

»■ j;

_

;

JI

The

setting up of these two
communities is in itself an event
of

major

importance.

But

what

has happened is more than the ac¬

ceptance

of two rather compli¬
treaties. It is the discovery

cated

the

acceptance

at

the

same

by all the major political
with the exception of the
communists, of a new method of
solving the economic and political
problems of gur nations. It is a
method which implies changing
the structure of Europe, basing it
groups,

on

the

of

on

Federal

the

sovereignty.
ing

up

principle

instead

principle

of national
It does not mean giv¬

national

come

to

the

Nationalism, the

characteristics,

differences and

nation state, no longer seemed to
provide the answers to our prob¬
lems. Even international coopera¬
tion

and

a

the

subsidies for itself and discrimina¬

pursuit of

fundamental

change of

came

structure seemed necessary.

about.

creased its

While

France

in¬

exports of steel to Geiv

Certainly, in 1945 reconstruction many, and Germany its exports
began within the old forms. With i of coal to France, Italy, thought to
the exception of Germany, where be the weakest of the. six, quietly
the task; of reconstruction
doubled its steel production. The
was
.

,

incredible not only became true,
selves, national governments were j but more than that, became be¬
the only available instruments. A lieved and accepted, namely that
Byzantine system of barter-trade increased competition was in the
and money-exchange between our interest of all, that the withering
nations sprang up, proving once away of national sovereignty by
institutions of Federal
more, and now in peacetime, that common
for Europe's nations new forms character did not mean disaster,
of living together were indispen¬ but, on the contrary, served the
taken in hand by the victors them¬

sable.

1947

made

it evident

that

even

the

could

only be fulfilled with for¬

task

of

reconstruction

*Aa address by Mr. Kohnstamm before
Twelfth American Assembly at Arden

House, Harriman, New York.



interest of everyone.
The

European Army Plan was
even
before, in Aug.
1952, the Coal and Steel Com¬
munity began tcf function. It was
hoped that it would be an impor¬
launched

to

speak of

excellent

engineering in¬
provides for the
scientific abilities

our

industrial

our

Euratom's Target

on

know, even before the
Euratom treaty was signed, the
governments of the six asked the
you

so-called

'Three

Monsieur

Louis

Wise I Man"

—

It

resources.

—

ratom. In the words oi this report:

"A

critical

reached:

has

moment

atomic

been

is coming
of age. Nuclear power has moved
out of
the
scientist's laboratory
onto the engineer's drawing board;
it will
now
come
quickly into
commercial phase. This provides
a great opportunity for our coun¬
tries

if

power

seize

we

it

and

a

grave

pro¬

danger if we do not.
Scientific
exchange, un¬
and technical knowledge can be
hampered by tariffs or quotas, of
borrowed; but industrial capacity
all
vides

also

for

the

goods and materials necessary

to build reactors.

actions

are

will

be

certain

for

enterprises,

Under the

projects

in

as

fabrication

our

Common

research

undertaken

the

pooling

necessary.

certain

treaty

But

is not enough.

resources

common,

for example

of

ele¬

fuel

chemical

ments,

separation and
isotopic separation, may be built
in

common.

possible,
will

ments

nuclear

nuclear

will

in

and,

represent the six

a

of

common

the relation
Euratom will

as a single unit.
and common

resources

actions make
and

to

Supply

be

other nations,

Common

invest¬

communicated

be

Executive.

fuel

undertaking

rules

the

make

coordination of invest¬

necessary

ments

In order to

certain number of

a

necessary,

applied

by

accepted

by

all,

institu¬

common

tions.
The Euratom

rules

to

treaty provides for

govern

information

and

the exchange of
the opening,

within

only one year, of a com¬
plete common market for nuclear
industry. Rules for health and in¬

surance

will

established

be

on

a

community-wide basis. Of great
importance is the safety and con¬
trol system set up under the

to function.

New

with

and

pooling of
and

Germany's decision.

taken in

had

now

Euratom

with

Germany, France
Italy pronounced themselves
huge majorities in favor of

ficient:

we

industry

nations,

mechanical

parliaments of

tion
against its competitors, to
goodwill keep alive. None of the calamities,
and friendliness amongst separate
predicted with touching unanimity
nations seemed completely insuf¬ in most of
our nations,
actually

that

of the road.

dustrial

dustries.

Euratom's

peculiarities—not
four languages. It
does
not
try to substitute one
monolithic superstate for six na¬
tional states. It is simply a method
of looking at our problems and
resources as being common to all,
of defining what actions should be

end

nuclear

Coal and Steel Community,
were signed in R&me last spring.
Public and parliamentary opinion
were well prepared.
Within four
months
after the
signature, the
pean

time,

as

War, an uneasy peace, the crisis
upon
our
nations'
re¬
thirties, the advent of Hit- sources, as well as on our nations'
lerism, the second world war—if- problems, as common resources
the

Committee for

the

and

Europe

of the

even

the

the United Kingdom. Nevertheless
all our nations are advanced in¬

formed the Action

of

looked

possible

with

existing in the United States and

accept the frontiers and divisions

Now to my first question: Why

Euratom?

capacity.
True enough, none
our countries disposes of a nuclear
industry, which can be compared

A few months later, Jean Monnet

eign aid and if undertaken in com¬
mon.
The Marshall Plan not only

an

Common

General

a

As

Armand, Herr
Franz Etzel and Signor Francesco
Giordani
to
report on
what
should
be
Euratom's target. .In
their report, which gives a clear
insight into what Europe expects
from "atoms for power", two ma¬
jor preoccupations appear.
The
first is that Europe's
industries
should not miss the atomic bus, as
they would without the common
of effort, made possible through Eu¬

Market.

and

Europe's greatest asset.

to me,

conference of experts

convene a

under the

Middle East oil
political problems. Terms growing confidence
needs,

their increasing energy

with

line

to

Reporting:

treaty/* Euratom will institute, be¬
tween
our
six nations, a supra¬
national
control
not
only over
uranium
rials

special fissile mate¬
delivered to them by third

countries, but also—and this is an
extremely
important
departure
existing practice—over nu¬
clear fuels produced within the
Community itself.
In order to
make the system water-tight, it
is decided

of

that special

remain

shall

fissile

ma¬

the property

they remain
property of the Atomic Energy
just

Euratom,

the

big

Commission in

as

the United States.

Furthermore, the Council of Min¬
isters can unanimously adapt the

not

do

scale

others

are

unable to face

be

soon

If

our

ahead on a
now, at
a
time when
poised to do so, they
go

com¬

petition

from the full-grown in¬
dustries
which
have
seen
and

seized their chances in time. Later

development

would

only be

pos¬

sible behind protective walls with
all

the

drawbacks

they involve.
growing importance
techniques for industry,
Europe, as the world's greatest
exporter
of
engineering
goods,

In view of the

of atomic

afford

cannot
to

move

Their

miss the

to

off to

a

chance

rapid start."

second

preoccupation is
increasingly serious en¬
ergy situation. The figures are by
now well-known.
The six nations,
which were still nearly self-sup¬
porting in energy just before the
last world war, are this year im¬
porting the equivalent of 110 mil¬
lion
tons
on
coal.
Assuming a

Europe's

moderate, but steady, rate of eco¬
nomic expansion, the import-re¬
quirements will reach 200 million
tons

(35%

ten years

of total requirements)

later. These imports will
balance

of

create

difficult

ments'

problems. Since they will
part take the form of

pay¬

for the most

Middle
same

East

oil, they will, at the
a much
more
political problem.

time,

serious

and

from

terials

industries

will

oneself.

create

must

one

create

In order to understand how Eu¬

rope's growing dependence on
Middle

East oil

has sprung on

as

unexpectedly, we must look at
three
developments which took
place during almost the same
years; all three with revolutionary
speed.
These developments are:
so

Firs

t, Europe's rapid economic
growth since 1950; secondly, coal's
loss
of its virtual monopoly
as
source of energy; and thirdly, the
rapid rise of the Middle East as
a major oil producing region.
The

first

Community's control mechanism
on
the
executive
Commission's

in

proposal.

revolution

took

place
develop¬

dustrial

execute

To

vise

of

composed
formed.

the

actions, super¬
the rules, a

elaborate
executive

and

Euratom

It

five

acts

in

Commission,

members,
close

is

contact

Europe's

ment.

economic

Between

1900 and

1913 in¬

production increased rap¬
idly not only in America, but
also in Europe. But in the thirtyseven
years
between
1913 and
1950

which

included

wars

and

world

a

world

two

crisis,

Europe^

Council
of Ministers, experienced two full decades in
provides also the necessary which industrial expansion hardly
coordination between State and kept pace with the destruction
are
necessary to govern our be¬
The same brought about by war, and another
havior as citizens of a European Community action.
controls the decade of crisis and near-stagna¬
Community. It sets up the neces¬ Parliament, which
sary

common

and what

rules

institutions: An Executive in

order to

do what should be done

in common and in order to
the

of

apply
Community rules, a Council
Ministers to harmonize Com¬

munity

action with state action,

the

with

which

Executives of

the Coal and

Steel

tion.

The

same

wars

sped up
expansion:

Community and the Common Mar¬

American

ket, will control the action of the
Euratom Commission. A Supreme

only the crisis hit the American
production very badly too. The

Court, also
and

Steel

common

to the Coal

Community

and

the

result

was

duction

industrial

that the industrial pro¬

between

1913

and

1950

Market, will form the went up from 100 to 150 in Eu¬
rope, and from 100 to 350 in the
respect of the law by the Com¬ judiciary branch of Euratom.
United States. Owing to more ef¬
munity's Executive, national gov¬
Europe's Expectations From
ficient use of. energy during this
ernments and citizens alike, and
Euratom
period, energy requirements did
a
Parliament to provide demo¬
I have tried to explain why Eu¬ not have to
keep pace with indus¬
cratic control.
a

Court

of Justice

to

ensure

the

Common

trial
expansion.
In the United
Euratom now is simply the ap¬ rope has chosen Euratom as its
States, where expansion was not
plication of this method to the instrument and how it is consti¬ held
up as in Europe, energy re¬
problems and the promises with tuted. We now come to our second
quirements more than doubled
which the advent of atomic energy question: What does Europe ex¬
during this period, but in Europe
confronts our six nations. In this pect from Euratom?
they could be allowed to remain

Volume

18G

Number 5702

.

.

.

The Commercial and Financial Chronicle

13

(2821)
stagnant. But then in 1950, for the
first time since 1913—with the

ception of

few uneasy

a

ex¬

in
the late twenties—real expansion
in

set
and

in

Europe.

1955

six

Between

industrial

nations

years

1950

output in the
34% more

with

rose

rapidly than in the United States.
In

the

same

years

energy

con¬

sumption shot up by 36%, slightly
more rapidly than industrial
pro¬

One may deny the
possibility of
acnieving tnis target, but one can¬
not deny, it seems to
me, the ne¬
cessity to leave no stone unturned
in trying to achieve it.
Tne

deepiy

they need
only be realized in the closest

second

development,
before

years

States,

which

a

in the United

now

within

took place in Europe
few years: Coal lost its

virtual

monopoly
as
source
of
energy. In 1938, 95% of our six
countries'
energy
requirements
were covered
by coal, 4% by oil.
In 1953,
the percentage covered
by coal had gone down to 80%,
to

that covered by oil

ance

ox

with

the

had risen

20%. Owing to geological con¬

ditions the expansion of coal pro¬
duction in Europe is difficult and

only possible within strict limits.

co¬

United States

I

I

ior

a

achievement, visited the United
States, the United Kingdom and
Canada.

fidence.

this

country

their

discussions with the Secretary of

State,
bers

the

Chairman

of the

and

mem¬

Atomic

Energy Com¬
mission, convinced them as they
stated liTtheir report that "on the
healthy basis of a twu-way traf¬
fic,

close partnership

a

be

can

built

United
their

ing

equals
between
the

up

States

and

respective

as

for

to

me

precise

is

This

consumption in the
Community rose with an average
of

15%

(or at

five

every

1955

and

(or

at

four

and

with

18%

Hemisphere,

6.5%

later

years

85%

Western

East).

Middle

Middle

the

East

produced 25% of the free world's
oil;

Jts

share

is

expected to

rise

to

Vw of free world production by
1965 and % of free world
produc¬

tion

by 1975.

Western
oil
a

In the meantime the

Hemisphere,

once a

great

exporter, will probably become
net importer.
Known reserves

in

the

Western

Hemisphere
thirteen
times

resent

only
year's production,
dred

times

in

Nevertheless
tan

Bank

against

the

the

a

Middle

Chase

rep¬
one

hun¬

tion and

East.

oil

development, the surface

the

(in

Middle

East)

has

barely

been scratched." Between 1946 and
1955

the

produce
were

investments necessary to
times

seven

United

additional ton of oil,

one

States

high in

as

in

as

the

the

Middle

East.

Oil, as far as Europe is con¬
cerned, is rapidly coming to mean
Middle Eastern oil.
It

is

for

these

'The

the

"Three Wise Men" stated Europe's
need for atomic power as follows:

"Thus

without

nuclear

Europe's dependence

power,

the Mid¬

on

dle East is bound to increase.

The

Suez

Crisis has given us a warn¬
ing of what this could mean. As
the
the
will

quantity of oil imported from
Middle East increases, there
be a corresponding increase

the

in

political temptation to in¬

terfere with the flow
that

region.

could

be

A

of

future

oil

from

stoppage

economic

an

calamity
for Europe. Excessive dependence
of our highly industrialized coun¬
tries
even

ble

unstable region might
lead to serious political trou¬

on

an

throughout

the

world.

essential that oil should

modity and not

a

be

political

a

It

is

com¬

weapon.

The European economy must be
protected against an interruption
.

oil

of

native
the

supplies, by
sources

further

of

rise

finding alter¬

energy to limit
in
oii imports.

Only nuclear power, providing
Europe with a new source of en¬
ergy, can achieve this."
The

"Wise

million

capacity

KW

by

of

the

is

basis

of

Community
the Common Market, as well
Euratom.

For

seven

years

con¬

not

so

European

a

expansion.

A

past of

nations has

our

spellbound for many dec¬

us

But

we

are

now

experi¬
which,
destroying our nations,
their past, their
heritage, enables
menting

with

method

a

without
to

us

look

towards

Some

a

people

common

fear

that

method

might give rise to
new
divisions, to a new super¬
power, inward-looking, and think¬
ing only in terms of "we" and
"they."
Nothing is more mis¬
taken.

It is

fear and

the

spell of

past which make nations in¬

ward-looking.
that

the

We

convinced

are

which

methods

we

are

trying out, will not remain con¬
to the Europe of the Six.
They may not even necessarily

fined

be confined to the greater
of European nations.
One

family
of my

my work has been to apply this
method, first to coal and steel and

friends, with whom

afterwards

engaged in this European adven¬

ing

at

to

fields.

new

this different

Look¬

Weapons

by

great

a

it

so

as

decided

battle,

objective

an

a

shape

in war. It can
the outcome of

single

a

of

let

to

be

long

cannot

by

loss

afford

unambiguous

engages

as

war

it

or

superiority,
through most of

can

take

before

geography

material

history,

threat

do

by

have been

we

our

Foreign Policy" I
this sentence: "A

by

favored

a

as

and

struck

power

ha#fc>ens

I have been
beginning,

very

our

cooperation, I find myself
taking a busman's holiday.
In
Kissinger's
excellent
"Nuclear
was

the

from

ture

object:

future

of the most
French of all Frenchmen. He can¬
be

to

one

live

not

anywhere
only time I

The

but

Paris.

in

sug^eedecl in
bringing him to the Netherlands
he
fell ill
immediately.
There
being no better proof of how far
silent revolution has gone al¬

our

ready,

like

would

1

few

a

other

to

read

you

which he wrote the

lines,

rest, I care very little
being a good European. It
could tell me some more

about

by

anyone

or

located

the
out¬

effective

of freeing French¬

way

from

Western

elsewhere—then I should abandon

territory, which could
catastrophe, such

national

cause

the loss of Middle Eastern oil

^as

would

be

for

Western

Europe."

But does such

catastrophe? And is not
catastrophe a thing dangerously
to war and, worse, defeat?

near

is it

And

not the

strategy in
to

means

nuclear age to be

our

flexible

as

possible;

as

try

to

seem

sort?

in
be

hard as possible
development of a

which

just

which

problem

common

United

only re¬
occupational

my

energy

would

and

makes

Europe's
the

force

last

our

it

Is

disease

which

as

prevent the

situation

great maxim of

me

look

problem
to

States

as

Europe

which

at
a

may

be

"America has the greatest knowl¬
for
it

it,

we

and

have

no

greatest need
Does not this situation in
tual

self-interest call for

mate

association

United

States

United
this

and

States

all

what

our

our

situation, has

a

fuels

and

Men"

difficult energy

positive side
to it.
The average cost of elec¬
tricity
being
much
higher
in
Europe

than

power

will

long

in

United

the

testing

ground

nuclear

power

therefore,

power

per

very

in America, atomic
be
competitive
in
before it can be so

Europe

States.

Europe,

willing to pay 12-15
kwh, can become the

program

for

commercial

plants.

and

when I sided with progress,

torn

was

have

I

as

away,

described, from the fatal charms
the
past
and
its
vanished
glories."1
of

1 Francois

ber

had

two

all-time

as

alternatives:

*

continue

Fontaine

Preuves—Octo¬

in

1957.

Hallowell, Sulzberger,

With

earn¬

highs the

the old

banks

either

rates

to

retain

and

much of

earnings as possible to
capital funds, or go all-out

bolster
with

dividend

increases

the

to

long suffering bank stockholders.
Well, the managements in most
did both. With pay-out aver¬

cases

As

the

develops, experi¬

new

—

the New York,

and PhiladelphiaExchanges and

Stock

Partners will be
Henry R. Hallowell, Charles H.
Sulzberger, Morton Jenks,
Samuel

Jr.,

Lawrance

Beebe,

Gilbert

N.

Kirkland,

Blaine
A.

W.

Brown

general

Megargee

John

the year,

and hence the need for

large

accretions to capital funds
not pressing, the banks alwavs
find it comforting to arrive at the
was

top of

economic

The

with

erous

the

its

had

reserve

United

Trust would have been

States

more

gen¬

shareholders

with

better earnings that they

are

to show this year.
As for Manufacturers

had

Trust, it
generally assumed that

been

this bank would follow
of First National
and

the

leads

City, Chase Man¬

Chemical

stock.

new

Corn

Ex¬

Manufacturers has the

highest deposit: capital funds ratio
of the leading New York banks,
and it seems probable that had the
general market held up, new capi¬
tal would have been sought. The
market
decline
(which affected
bank stocks adversely even though

the term is

Yes, the: New York City banks
were well treated by the
leading
banks, for besides the numerous
extras they had equity increased
through retained earnings.

large

boom

amounts

of

,

preferred, equity) were
being sweetened, the shareholders
not

were

neglected

is revealed

as

in the

following data. Five insti¬
tutions, it will be noted, increased
their

cash

clared

disbursements

Bankers Trust—Increased regu¬
lar rate from $2.80 to $3.
New York

of

—

Chase Manhattan—Issued rights
stock.

new

8%

some

book value.

9%

or

below

Capital flotations

der this condition

un¬

not relished

are

by the stockholders,

as

general

a

rule.

Fred B.

Dickey With

Morton Seidel & Go.

Increased

regular rate from $12 to $14, and
declared an extra of $2.
to subscribe to

to

turers

(or de¬

increases):

Bank

considerably less than industrials
and rails) has brought Manufac¬

LOS

ANGELES, Calif. —Mor¬
Company, 458 South
Spring Street, is pleased to an¬

ton Seidel &

the

nounce

appointment of Fred
B.

Chemical
sued

Corn

rights

to

Exchange

subscribe

to

Dickey as
Registered
Representa¬

Is¬

—

a

new

stock and increased the cash divi¬

tive

dend rate from $2 to $2.30.

Trust

—

Declared

4%

a

City

subscribe

to

Guaranty

Trust

Bank

stock dividend of
held

a

with

one

new

Me

for nine

Morgan & Co.—Declared

a

162/:'{% stock dividend.
New York Trust

cash

from

—

dividend

increased

each

dividend

the

in

case

was

Declared
of

25

an

cents,

regular
which

declared

cash

or

announced that the

was

stock

a

proposed
by the boards,

to the stockholders

it

Fred

ual

B.

regular

was

al¬

ready holding the stock is equiva¬
lent to a cash increase, so, in net
effect, there were 10 increases.
Even for

took

no

the

two

banks

action there is

to

be

made.

which

some

United

com¬

States

became

elected

Senior

following

and

Vicemerger

Vice-President

as

of

Security-First National Bank.
He served on many Committees
including Trust Investments and
as

a

Senior Loan Officer process¬

ing and handling commercial and
security collateral loans in siz¬
able

person

Los

the

He

the

of

elevation in the official fam¬

and

tained,

for

and

ha nts

Angeles/en¬
joyed grad¬

Dickey

President,

cash payment rate would be main¬

which

The

National

ily

$3.25 to $3.50.

In

r c

Bank

2%

a

stock dividend.

extra

1911

Farmers
a

(11 1/9%),

and

in

ness

Announced

—

Irving Trust—Announced

J. P.

the

banking busi¬

dividend.

Hanover

'

Dickey

entered

stock

rate to $3

Declared

—

Mr.

;

Issued

-—

new

and increased the cash

20%'stock

of

Advisor.

National

rights to

the

Invest ment

stock dividend.
First

in

capacity

volume
also

Independent

diversification.

and

served

as

President

of

Association

Bankers

of Southern

California, Chairman
Group Five California Bankers
Association, Member of Associa¬
of

tion of Reserve City Bankers, and
Charter member of American In¬

stitute of
After

Banking.

the

many years of cus¬
service, he elected to re¬
Aug. 31,
1957,
and enter
business
representing Morton

tomer
tire

Seidel & Co.

Scott,

and

and

and

Cummins

Sulzberger &

Keir will be dissolved

Bankers

to

the

Government

Bankers

-

Trust Company,

Is

Kenya Colony and Uganda
Office: 26 Bishopsgate.
London, E. C. 2.

West

present Exchange member
of Hallowell,

BANK

INDIA, LIMITED

Jr.,

Harold

partners

NATIONAL
of

New York

Head

Co., and Jenks, Kirkland, Grubbs
&

this

period
capital
funds in relation both to deposits
and to loan volume.
Also, in¬
creased capital and surplus enable
banks to take on larger loans to a
single borrower.
But, while capital funds (or, if
with

an

A.

Catherwood, limited partners.

firms

for

present,

change with rights to subscribe to

Effec¬

other exchanges.

H.

need

been

firm will be members of

Baltimore

Nigro,

It is this writer's thought that

the

not

hattan

a
healthy slice of
earnings for the purpose of in¬
creasing capital funds. While de¬
posits showed no great growth in

Jenks, Kirkland Co.
Pa.

if

banks retained

ment

PHILADELPHIA,

but it will be subject to
expensive installation for
a large reserve has been set

which

aging around 60%-61?'% of operat¬
ing earnings it is obvious that the

The

called "the most complete nuclear
foundation in the world."
Our

need, that is

swore

struction

up.

at

The

mu¬

the

bring

the ."Wise

abandoned the
nationalist past in favor of Eu¬
rope. I am not ashamed to admit
this inconstancy, which is the log¬
ical
outcome
of
a
higher alle¬
giance—the allegiance which 1
I

the

managements in 1957?

ings

Europe for this other
as

of

Trust Company recently sold its
building site on Wall Street, and
an insurance company is in process
tive Jan. 2 Hallowell, Sulzberger,
of erecting a new building in part
Jenks, Kirkland & Co. will be
for the trust company.
However,
formed with offices in the Phil¬
the bank is not doing the con¬
adelphia National Bank Building.

it."
inti¬

an

between

association nuclear

above

of

just

holders

into

for

Euratom?

would

idea

quest,

need

no

knowledge of

the

the

and

solved by our common efforts? A
friend of mind said the other day :

edge of atomic power and

men

the

much

their

a thing as a
purely
European catastrophe exist? Does
not
European catastrophe spell

its

Bank Stocks

of the leading New York
City banks been treated by their

Empire

"For the

against

have

How
stocks

day.

staleness, from
their fears, from their complexes;
if anyone could promise to me a
revolution
which would
change
the
structure
more
effectively
while destroying less; if anyone
could show me that progress lies

side

1967




new

Steel

mills

represents an
answer
to a politically and eco¬
nomically' threatening situation.

the

dealing with Europe's

Men's" target of 15
installed nuclear

of

one

this

on

in

economic

rich

the

Coal

of

as

to

that

reasons

remarks

I have described to
you

Manhat¬

report says: "From
standpoint of both explora¬

the

general

and

confined to the Western

you

subject.

and

(1945:

Ten

two

or

which

production of oil was, if we leave
the U.S.S.E. aside, for all practical

grateful if

would permit me to end with

the

Europe found itself
confronted by
a
third develop¬
ment, also revolutionary in im¬
portance and rapidity. Until 1945

purposes

be

problems

here

Hemisphere

would

1956

years),

And

But I

method

within

im¬

mediately after Euratom is set
that is within a few months.

1950

in

discussed

up,

doubling

between

of doubling

rale

a

rate of

a

years)

be

be

may

all

of

community wmch, after 4u years
of crisis
war
and hatred, is at
last turning towards tne future.

our

will

it

sense

Community wmch for the first
for nearly 4U years is at last

destiny.

of

me

time

enjoying

ades.

sugges¬

gfowing

a

after

strange

Be¬

industries."

make

it

less:

kept

capable nor author¬
so, it would be foolish

believe

jtJut

time.

—

great¬

not, tyom now on people are
to find it there neverthe¬

and

Euratom

neither

ized to do

or

long

Ihis VVeeK

which

nobody has
thougnt of looking for in Europe

tent

oil

our

what

going

and the United Kingdom.

satisfy the need of this expanding
economy, the only possibility was
to increase the import of Ameri¬
can coal and, above
all, the import
It is therefore not astonish¬

By ARTHUR B. WALLACE

mention

consider

personalty

asset—one

In

Bank and Insurance Stocks

and

science

now

est

concerning this cooperation.
Undoubtedly the form and con¬

that

innent-

capacity.

must

tions

of oil.

be¬

"We wouxd

Greatest Asset
But

can

Oil and natural gas are not found
in important quantities. In order to

ing

would

ricft

our

inventive

industrial

seeing in this
cooperation the first condition of

had already been well on its way

and

program

operation

thereby

available to ail.
comrioute

are

The "Wise Men"

Loss of Coal Monopoly

some

countries

aiso

of the fact that tne

aware

power

duction.

A

Euratom

gained

ence
come

Dec. 31.

End

(London)

Branch»

Bulletin

13, St. James's Square, S. W. 1
Branches

Burma,

on

Request

In

India, Pakistan. Ceylon
Aden, Kenya, Tanganyika

Uganda, Zanzibar, and Somaliland

Protectorate.

Authorized Capital-.

£4,562,500

Paid-Up

£2.851.56?

Reserve

Capital
Fund

■

Laird, Bissell & Meeds
Members New York

Stock

Members

Stock

BROADWAY.

(L.

A.

£3,104,687

Telephone:

The Bank conducts every description of

banking

and

exchange

business

Trusteeships and Executorship*
also

undertaken

American

120

Bell

NEW

BArclay

Teletype—NY

Gibbs,

Manager

Sracialists

in

Exchange
Exehange

YORK 5, N. T.

7-3500

,

1-1248-49

Trading

Bank

Stocks

»

',"1

Dept.)

The Commercial and Financial Chronicle

(2822)

14

Two With

Hathaway In v.

Colo.

DENVER,

connected with

Corp.,

Hathaway Investment
South Pearl St.

Joins C. M.

900

joined

has

Hathaway

Hathaway

Sherman.

He

staff

the

selors

ISpccial to The Financial Chronicle)

Lawrence
are

now

and

—

Roberts.

Freddie

with

First

Corp., Denham

Gonzales

International

Building.

MUTUAL

A

INVESTMENT

FUND

,\N^
0*°
mwrtat
vmUt, Stccki Settei

investment coun¬

16,000 shareholders of Managed

"Business capital expenditures for new plant and equipment
decline moderately from
1957, about $3 billion.
Foreign

will

DENVER, Colo.

a

year-end report to the

a

the second

activity by about

Funds, Inc.'s 11 classes of mutual fund shares, Slayton Associates
up the 1958 business outlook this way:

Columbine Securities Corp.

Two With First Internat'l

business

in

predicted here today by the
$48 million mutual fund group.
was

exports will also decline about $1 billion.
"But these declines should be more than offset

increase
in consumer purchases of $11 billion, a rise in home buying of $1
billion, and an increase in Federal, state and local government
spending of $5 billion.
"Although business will probably continue to mark time for
a few
more months, a brisk advance should set in as the second
half of 1958 approaches."
Meanwhile, as 1957 draws to a close, business has pretty well
recovered from the "attack of nerves" it suffered in early Autumn,
said Slayton Associates.
They said the stock market decline was due more to dis¬
appointment over the failure of fourth quarter activity to reach
higher levels than to fear of a general decline.
The report attributed part of the market decline to "the shock
Sputnik gave to the national ego," but commented that "the
Russians actually did us a favor by shaking us out of our false
complacency."
; •
The resulting probability of a $2 billion per annum rise in
defense spending may not sound like much in relation to the whole
economy, Slayton Associates said, but many fail to realize that a
dollar spent by the government multiplies again and again as it

>

by

an

through the economy.

moves

The

closing weeks of 1957, the report went on, have seen a
sharp recovery in consumer buying after its October bout with

WRITE FOR
FREE INFORMATION
FOLDER AND

the Asiatic flu.

PROSPECTUS TO

.

favorite

NATIONAL SECURITIES &

in

sales

Automobile

DEALER OR

YOUR INVESTMENT

economic

particular—one

indicators

million-car

—

for .1958,

prospect
industry hopes for."

are

"or

of

•

'

•

holding up well, with a 6maybe the 6\k ' million the

National .Association
ment

companies,
formed
since
1954
under
existing U. S. and
Canadian laws, have in a com¬
paratively short time established
an
effective pattern for serving
the long-term foreign investment

Outpu t
High

To Remain

Next Year

needs

Canada's

Although

experiencing
Interested

similar

that

to

of

industrial

other

in

economy

is

current correction,

a

the

S.

U.

nations,

and

total

Canadian

output in 1958 should
continue at a high level and the

ATQIVBIC
'

c Hyi we n

v o

Kb Wm Kb Im

V

■

Canadian
economy
gives every
promise of resuming growth, ac¬
cording to Hardwiek Stires, Chair¬

glad to send

you a

than 75

holdings of

-

companies active in the atomic

field with the

sharp
contrast
with
the
downward swing in Canadian se¬
curity prices in 1957, Stires em¬

other important fronts. Canadian
oil production, consumption and

objective of possible

growth in principal and income.

exports
and

Atomic

Development Securities Co., Inc. Dept C
1033 THIRTIETH STREET, N. W.

more

90%

as

above

were

the

of
of

fully tapped

orn,® 0( pno■owth oi v
income.

invested

or

SToCK f/?*

pointed

fUNq

tual

abroad
in

average

ments

the basis most welcome

on

the

of

Invest-- Shares.

Companies.

\rC'

■■

■

One of these factors is

r

our

grow-'

for the Association's' ing population,
relative to our:
140 open-end (mutual fund) ancT' smaller-tha i-normal
working,

closed-end investment company *
force, resulting from the low birth'
members, Mr. Burr cited a new rate in the 1930s. The other is:
low redemption ratio for open-end
rising
labor
and
raw
material >
companies,
and
new
highs
in costs.
.>
monthly and quarterly accumula¬
In addition to discussing auto¬
tion plans for both open-end and '
mation as a prime factor in the
closed-end company members. In¬
future of the electronics
industry/
vestor purchases of open-end com¬
Distributors Group goes on in its*
pany shares were also at an allnew folder to point out other areas'
time high during this year of un¬
that will add to the growth of the
certainty in the nation's securities
already giant electronics industry.
markets, Mr. Burr reported.
Specifically,
atomic
power
and
Total purchases of mutual fund
research
24

.

discussed.

are

shares

for

1957
reached $1,420,slightly higher than pur¬

000.000,
chases

of

$1,346,738,000 in
the previous record year.
While

1956/
V

investor

increasing,

purchases were
value of mutual

the

fund shares turned in for redemp¬
tion declined from $432,750,000 in
1956 to an estimated $420 million
in 1957, according to the Associa¬
tion.
The
redemption ratio—the
value

cial

attention

fact

that

is

the

And

brought

electronics

spe-'

to

the

industry

had a larger relative investment in
research than any other sector of

the American economy.

Backing

the

up

electronics

future

industry

is

the

of

its

past

ten-year record—evidenced by the
results

made

of

assumed

an

at the

Electronics

investment

beginning of 1947 in

and

Electrical

Equip¬
shares turned in by in¬
ment Shares. With all income and
compared to year-end total'
gains reinvested, $10,000
at an all-time lew of capital

of

vestors

assets—was

4.6%.

In 1956, the previous record'

year,

the

redemption

ratio

was

would

have

November

to $33,929

grown

1957

by

increase

an

—

of

239%.

4.8%.

countries
are

made.

where

They

invest¬

pro-'

are

monthly

or quarterly acqui¬
open-end
investment
company
(mutual fund)
shares,
reached an estimated
645,000 at
year-end, a net increase of 181,000

sition

the

over

year-end

1956

figure.

month, Mr. Burr said,

every

Plans

for

purchasing

shares

of

or

He pointed out that during 1957
the eight Canadian portfolio in¬
vestment

companies

in the
aggregate, net buyers ol' Canadian
securities, a fact which tended to
cushion

the

decline

in

Canadian

gust.

During

companies

1957

the

Canadian

which

continuously
offer new shares reported sales of
more than $70,000,000.
This added
participation by U. S. long-term

Corporation,

investment

company

managed by Calvin Bullock, Ltd.,
made payment over the weekend

investment

companies of its final distribution for 1957 to

New

Stock

The

York

change Monthly
also

continued

the

year

at

for

total

At year-end

a

gain

M. I. P.

were,

securities market prices since Au¬

& General

under

a

Ex¬

Investment Plan

to

increase

rate

lVl.

I.

P.

than

accounts.

M. I. P. accounts for

during the year
plans of 22%.

Total

net

assets

of

for

member

mutual

$9.2

Assets

func\;

billion,

the

Jan.

billion.

are

of

the

estimated

slight gain
1957 figure of
a

.1,

140

at

$9.1

Total assets of closed-end

company

members

are

6,

estimated

1957.

Consisting of 40 cents
from

$1

net

investment

share

per

profits,

the

to

year

from

85

for

net

net

the

cents

bring total
fiscal

share

from

income

securities

and

securities

1957

per.

investment

net

share

per

income

payments

distributions

and

profits,

$1

com¬

pared with 84 cents and 74 cents,
respectively, in 1956.
The

payment

was

one

of

the

first made by an investment com¬

since

pany

the
over

stockholders of record

common

Dec.

all" from

companies for year-end 1957 are
estimated at $10.5 billion by the
Association.

its

during'

higher

purchase of closed-end investment
company
stocks totaled 3,500, a
gain of 32% in 1957 compared to

domination

Oil New Rule

closed-end

to

outside

Pays Dividend

Currently, about 19,000 new accu¬
Carriers
mulation plans are being started closed-end

that

impose

Carriers & General

of

viding capital that stays at work
for the long term, without seeking

investors

these

which

portfolio
mu¬

currently

125,000 U.
S.
demonstrated dur¬

ing 1957 that their operations per¬
an
important
stabilizing

form

5foc,^0n"n°n

markets,

Prospectuses available from
or

HOWARD, Incorporated

24 Federal St., Boston, Mass.




ed

in
as

Canadian

well

basis

most

while at the
an

welcome

to

Canada,
providing
long-term invest¬

same

attractive

ment

securities

supply need¬
capital on the

as

development

time

medium for U.

"These publicly

S.

contributed

importantly
the year's total inflow of capi¬

than

shareholders,

anc/

Dealer

.be

Stires reported. He

type,

more

function

&

re¬

explored.

that

out

fund

serve

°<> p°ss/b/°/
_Pr,ncip°\~,u'e

Investment

to

investment companies of the

*estrn

your

oil

remain

up

much

principally in the Cana¬

dian economy,

EATON

suggest

Internal
such

mitted
all

a

or

ized

1956 Amendment to
Revenue

Code

companies

to

per¬

retain

part of the net profits real¬

in*

a

taxable

year.

In a letter to stockholders ac¬
billion, approximately the
Stires pointed out that Canada's
same as the year-end 1956 figure.
companying the distribution, Hugh
to
Gross National Product will prob¬
pointed out
During the year, the member¬ Bullock, President,
tal into Canada, it was stated.
ably reach the all-time level of
ship of the N. A. I. C. increased by that, during 1957. through sales
The
Committee
of
Canadian
of
$30.5 billion in 1957, moderately
investments
made
the net addition of six companies.
largely at
Investment Companies' chairman
above the 1956 peak. Total capital
'There was a net increase of five the higher market quotations pre¬
made it clear that the eight regis¬
investment will reach about $8.8
new
vailing during the first six months,
open-end companies, adding
tered
Canadian • companies,
by at
billion in 1957. The year's exports;
year-end $63 million to the Carriers & General realized net
will be close to $5 billion, with in¬ policy, will continue to commit
total assets of mutual funds.
A profits in addition to the $1 per
their resources to Canadian and
creases
posted in such items as
net increase of one company in share distributed to stockholders.
other
foreign securities
having the number of closed-end
iron ore, uranium ore, aluminum
com¬
Although the exact amount will
promising long-range growth pos¬
and asbestos.
panies represents on balance $171 not be known until alter Dec. 31.
rather
than
seeking million
Eight publicly held Canadian sibilities,
of
additional
assets
at 1957. he said, they are currently
quick short-term profits through
investment
companies
whose
year-end.
These assets are in¬ estimated at over $2,000,000, or
shares are qualified for sale to trading.
cluded in the year-end figures.
approximately $4 per share.
The
U. S. investors now manage more
Canadian
companies,
by
Mr. Burr estimated that mem¬
"Under the provisions of a 1956
than $320,000,000 of total resources policy, retain and re-invest both ber
companies purchased securi¬ Amendment to the

-cl-

lnc°rne

was

as

potential

Canada

levels

1956

potential oil output
than 12%. Perhaps

serves

WASHINGTON 7, D. C.

d^»'s,f,Dr'rn7rW
in

of

investors," Stires said.
"Of equal importance — in per¬
forming this service they are pro¬
viding needed investment capital

control of local enterprises."

phasized, the Canadian economy
registered
significant
gains
on

stocks selected from among those
of

of >Cana-

thousands

of

American

In

Development Mutual Fund, Inc. This
more

Committee

dian Investment Companies.

free

prospectus describing Atomic
fund has

The

of

man

We will be

strongly

Accumulation plans for the reg¬
ment

Canadian

factors

the continuing growth of automa¬
tion for greater productivity and

Speaking

ular

Broadway, New York 5, N. Y.

"Two

more

during 1957, brought total accounts lower unit costs," according to
to an all-time high of 3.3 million Distributors
Group, Inc.—national
at year-end, according to Edward sponsors of the mutual
fund, Elec-;
B. Burr, Executive Director of the' tronics and Electrical
Equipment

RESEARCH CORPORATION
Established 1930

120

of

investor accounts in

400,000

•

Associates'

Slayton

increase

net

the nation's investment companies

summed

previously with

was

of

In

1575

advance"

1958

of

The

Company,

"brisk

A

of

than

Business to Advance Briskly in 1958
half

M.

Automation

record

A

DENVER, Colo.—Harry N. Gur-

ley

Make Way for

By ROBERT R. RICH

(Special to The Financial Chronicle)

C.

Two Factors

In 1957

Killmer

P.

Thursday, December 26, 1957

.

Accounts Added

Mutual Funds

Nicholas J.

—

Howard

and

become

have

.

400,000 Investor

(Special to The Financial Chronicle)

Boler

.

investors.

owned, profes¬
sionally managed portfolio invest¬

their net income and capital gains
that may be realized, in order to

compound

long-term

preciation

possibilities

capital
for

ap¬

their,

shareholders at low tax cost. Since

at

$1.3

Internal

ties
of

for

$2.3

that
were

to

2

portfolio in the amount
billion during 1957 and

their

sales

from

portfolio
This roughly 3
portfolio purchases

$1.4 billion.
ratio

of

enue

Code,"

Mr.

Rev¬

Bullock

said,

"your corporation is permitted to
pay, on

Federal

behalf of the stockholders,
income

tax

on

such

net

distributed to
stockholders, at the rates prevail¬
the Canadian companies do not
during periods of market decline, ing for long-term capital gains.'
incur this liability.
particularly during the October The amount of such profits and
"The undeniably dynamic
and decline, Mr. Burr said, as member the tax paid thereon will be made
durable
character
of
Canada's companies
added to their port¬
known to stockholders as soon as
growth prospects and the stimu¬ folios securities they believed to
be particularly attractive at prices possible after Dec. 31, 1957 so that
lating and hospitable business cli¬
mate Canada offers to capital in¬ then prevailing.
Thus, Mr. Burr each may include in his return
vestment
will
afford
constantly concluded, any influence on mar¬ his
proportionate share
of the
broadening long-term opportuni¬ ket price levels
by
investment
corporation's realized long-term
ties for carefully selected, soundly companies during these peliod.s of
diversified portfolio investments,"- decline was in the direction oi" investment gain and take credit or
Stires said.
stability.
Canada does not tax capital

gains,

over

sales

increased

somewhat

profits

as

are

not

Volume

186

Number -5702 \v

.The Commercial and Financial Chronicle

.

15

(2823)
the rate

of

25%)

paid

his

on

be¬

half.
The

able

stockholder
add

to

the

of

trie

will

also

remaining

be

Offers

Business and Real Estate Trends

75 Vo

By ARTHUR M. WEIMER*

represented by such
undistributed profits, to tne tax
cost basis of his shares," Mr. Bul¬
lock

gain,

Tne

Economist, U. S. Savings and Loan League

»,

want

said.

Indiana

Reports
Space Satellites

Oil

Peaceful

satellites

applications

of

is

,

is

discussed in the De¬

are

issue

"Atomic

of

stronger

Activi¬

now

than it

;

ties," published by National Secu-'
rities

Research

&

was

and

Securities

of

managers

the

Series

of

The

outlook

for

now

should

Describing atomic energy and
space
satellities as possibly the

ably will be

high. Prices prob¬
stable, possibly the
gain a little in value.

terms

capability.

weapons

of

its

However,

atomic energy was swiftly put to
work

beneficial

in

peacetime

ac¬

tivities and the publication points
out that a similar course of de¬

velopment

lie ahead for

may

space

satellities.
:

The issue goes on to discuss the

-

t

large

of

satellites
which
would
be equipped with
solar energy converters for trans¬

mitting* radio
broadcasts
forecasts

television

and

of long
and

r

weather

range

other

information

is

tion

and
politics will
play a bigger

return

earth

to

would

be

real-'

a

ity.

Following that, Atomic Acti¬
vities suggests that "a giant space
platform

may

facilities for
for

a

months

or

station

power

next,

come

it

freight

Its

years.

would

energy

rockets

would

with

to live aboard

crew

solar

provide

need,

could

the

and

its

return

to

earth at will for inquired supplies.
Would a space platform be the
ultimate?

Quite
which
to

or

the

contrary,

would be

use

rocket
some

as

since

a

flights to the
remote

more

planet could be
article concludes.

or

its

base from
moon

satellite

launched," the

relations.

inflation,

temporarily. It does not
appear in view of the recent low¬
ering of the discount rate that the

monetary authorities will fight the
battle of inflation too

They

likely
that

to

the

other

side,
easing credit policies too

of

much

long and too

probably less

are

err

on

too

rapidly, in view of
their
experience in 1953.
Still,
such a possibility exists and could
or

accentuated

by a sudden
change in the international field.
the

On

well

are

international

aware

tions that

are

it

war;

of the many ques¬

This develop¬

have

halted

with

a

in the cold

advantage

has

wave",

we

given Russia at least

may

it

cut;

scene

posed by the launch¬

ing of the Sputniks.
has

savings

cost

us

a

"economy
demands for in¬

should

make

man¬

certain

that

they get their share. The aggres¬
sive promotion of savings has been
a
strong factor in the growth of
this

business.

It

will

be

Housing
Will

be

undoubtedly

competitive

very

ahead.

There

The aggregate of dividend pay¬
ments to the more than
135,000

shareholders in the United, Funds,
Inc. group of mutual funds set a

in

has

peak

ago—but not much change.

year

Vacancy rates actually declined in
the

past year.

A fairly balanced
generally exists. We

situation

should

that

note

local

the

character

lamily

housing

essentially
single-

the

of

market

makes

sets

reported for the

was

year

to

Dec.

16, the funds added 20,000
additional shaieholders, he said.

Dividends from investment in¬
come

from

year

amounted

the

four

to

funds

From

this

$13,388,807,

compared with $11,426,927
ago.

securities

a

year

profits, the

income

provided for distribution
$12,661,385, against $10,527,569

of

in the previous year.

United
with

$8.99

Accumulative
of

assets

share

a

its

make

Fund,

$128,890,867,

as

annual

Dec.

of

16,

or

will

distribution

this

month to 75,000 shareholders.

The

distribution

represents $5,164,864
investment income and $4,877,927 from securities profits. In
from

the

1956

same

ment

month

income

$3,591,159

the

dividends

and

invest¬

totaled

securities

profits
distribution aggregated $4,104,182.
Also included in the United Fund
group

United

are

United

Science

Continental

ganization; and it has created dis¬
turbing uncertainties in the minds

Income

Fund

and

Fund,
United

tives and

The{

120

bers

has

111.

of

La

the

Leonard

—

become

Shillinglaw,

South

execu¬

Some communities have al¬

ready

their housing markets
down considerably.
Others

slow

seen

have this experience

may

months

ahead.

This

declines

great

in

in

may

local

have

countered for

There

that

is

mean

de¬

en¬

time.

fairly

a

been

good

chance

will gain an ad¬

Bolger

Salle

Street,

Midwest

M.

&

Co.,

mem¬
Stock Ex¬

change.




houses

than the

to

newer

greater

a

any

the

extent

The volume

ones.

of transfers may
off

continue to slide
following the general pattern

At

be pleased over the very

received

being
loan arrearages.
The

reports
on

that

are

reports reaching the Trends Com¬
mittee

of

U.

the

S.

for

the

the

likely to

are

nancial

markets

lems

of

but

importance

equal

are

least

at

the

remind

ad¬

come

Savings

and

in

is

costs, prices, and man¬
agement in the building industry.
Prospects for a better cost situa¬
decline

good in view of
prices

some

materials

in

improvement

on

the part of

plus
many

builders in the efficiency of their

operations.

Labor is likely to be

productive in the months
House designs are improv¬

more

ahead.

ing.

the

I'd

all

probability mortgage
will be somewhat more
available

interest

move

extent.

rates

than
are

Lending terms
more

likely
marked

ma}'-

favorable

grow

to

the

estimates of some of

prospects for the year ahead,
like to consider a somewhat

briefly. Many have
been reading and hearing about
the "approaching decline" in busi¬
different topic

activity.

ness

The pessimists are

having another field day.
think

I

that

Some¬

being

pessi¬

mistic about the economic outlook
has

the

same

saying

kind

of

about

something

appeal

as

someone

Everyone likes
strange

reason

derogatory

in the community.

to
that

hear for some
someone

is in

borrower and builder.

trouble.
*An
the

U.

address
S.

Convention.

by

Savings

Dean

and

Weimer before
Loan
League

Apparently, the

same

could

many

name

other

of

strength, including our
widespread
provision of opportunities for all;
the protection against many of the
of life
which we have

been able to

and

Savings and Loan Prospects

.

Suppose we turn now to the
savings and loan business itself.
its important

are

it

was

in 1930?

One

source

character
these

strength

is

the
off

management

institutions.

Today comi
of all types are

leaders

represented
rectors of

on

of
the

of

neces¬

our

strengths?

specifically, in which ways
is this business stronger now than

ciations.

the boards of di¬

on

savings and loan asso^

Their

executive

officers

sophisticated in matters of finance
than

What

are

principal

our

strengths?
economy

as

whole

a

principal strength lies in our
long term growth potential, and
this arises largely from the kind

our

economic

of

system

we

have—a

.

system that maintains a set of
conditions favorable to progress

innovation,

competitive

a

which allows

We have been

able to

stave

off

people and in¬
of living de¬
spite the demands of the cold war.
our

standards
that

few

a

in

people

are

more

1930.

Some

must

go

for this

to

Graduate

School

and

Savings
Loan and other programs of

the

American

Savings

Institute.

of

Loai).

and

Some of the credit must

also go to the U. S. Savings and
Loan League which has made pro¬
vision
for
the
widespread
ex-*and for

inflationary trend.
provided expanding op¬

It is true

case

credit

change of important

wide

creasing

the

was

and

rest

inflationary threats in the face of
world

■the

trained

sys¬

to

one

no

past performance, a
demo¬
cratic system that makes govern¬
ment responsive to the wishes of
the people.
on

a

better

are

of the

the

For

development of
which keep savings

grams

loan

information

the

executives

most recent

abreast

pro¬

and

of

the

developments in

eco¬

nomic, business, and political af¬
fairs.

■Another

important

source

of

strength, not even in existence in
1930, is the Federal Home Loan
Bank

system. This system helps
explain the growth of savings

to

associations

loan

and

because

of

the

recognition accorded it as an
shedding tears over the' important source of strength by
chrome on our cars saying that
those outside the system.
The
this should have gone into mis¬ bank system recently celebrated
are

now

siles.

Maybe so, but it is comfort¬
ing to know that in this country
we

have missiles and

can

chrome,

too, if we want them.
In

short,

to

need

we

remind

ourselves of the tremendous pro¬
ductive capacity of the American

We need to remind

economy.

our¬

selves also that it takes continuing
effort

to

keep

the

ad¬

economy

climate very rapidly.

We

be

can

us

to avoid

a

our

boom and bust situa¬

tion from the

standpoint of

rapid expansion;
evidence

seen

avoid
tion

we

have already

their

of

too

a

desire

to

downturn through the ac¬

a

the discount rates.

on

Another

of

source

War II

and

cational
world

strength

Korean

of

benefits

of

these

had

the

advantage

the

and

business.

people

their
A

benefit

of

War who

GI

edu¬

entered

great

would

the

many

not

college

have
and

university training without their
veteran's benefits.
stitute

an

They now con¬

important group in our

population reaching the maturity

thing holds true for the American

necessary for major
ties.
They are men

economy.

quainted

with

that my

friend, Fred Greene, could
play in the ceremonies related to
that celebration.
It is important
that this system be strengthened^

expanded,
tended

responsibili¬

who are ac¬
the sacrifices that

its

and

even more

the financial

out

influence

ex¬

widely through¬

community.

Closely

related, of course, are
programs
for insurance of ac¬
counts
and
many
of the other
Federal and state programs which
added strength to

have

this busi¬

ness.

is

There

little

that

doubt

sav¬

associations today
stronger from the standpoint
of liquidity, reserves, and the con¬
fidence which the public at large
ings and loan
are

in them.

While
on

our

it

is

important to dwell
of strength in the

sources

past,

it

that

we

is

even

look

to

more important
the future.
Our

hope for the future is
progressive spirit of the lead¬
in the savings and loan busi¬

greatest
the
ers

ness

arises from the veterans of World

took

its 25th anniversary, and I was
especially pleased with the part

reposes

pleased that

monetary authorities have helped

of

1957

not

downward to any

slightly

in

report

situa¬

do.

highlights

Committee

Trends

and my own
the

times

generally
but

of

the

covered

the

to

weaknesses, as many of our
pessimistic friends are inclined to

ness

localities.

Having

One

of

ourselves

our

show

League

some

prob¬

of

tion appear

Loan

contrast

school system with its

munity

times like these it

to

sary

that has evolved in recent months.
can

strong liquidity
banks which stands

marked

sources

our

delinquencies
executives are concerned.
Prob¬
vancing—in terms of technology,
at about as low a point as they
lems will be numerous and dif¬
management, knowledge,, and the
can ever be expected to go.
Simi¬
ficult in many lines and it will
savings needed to provide
the
larly, the recent report of the
take real ability to cope with
capital equipment that is the key
Mortgage Bankers Association
to high productivity.
them.
shows
arrearages
at the lowest
We have a system of built-in
In housing the year 1958 is
points since the surveys by this
likely to see around a million group were started in 1954. Pre¬ stabilizers, if economic activity
dwelling units started, possibly a payments and complete loan pay¬ should fall off more sharply than
now seems probable.
In addition,
few more than in 1957. Much de¬
offs, however, are declining. De¬
pends on developments in the fi¬ linquencies are likely to rise in a tax cut could change the busi¬

to

associated

preparing

that

from

good

consolidating

the 1960's.

the

loan

not

some

houses

new

We

year

and

vances

is

portunities for

that

type

conditions,

competitive situa¬

a

and the emergence of problems of

favorable

Specifics

and of

We have

a

good

so

is good, if by
period of rela¬

business

mand, advances in delinquencies,

alike.

ahead may well be a
period that "separates the men
from the boys" so far as business

In

Shillinglaw, Bolger

CHICAGO,
Stenson

business

consumers

Outlook

Fund.

(Special to The Financial Chronicle)

with

people,

many

money

With

reor¬

gains

and

tions.

con¬

the
our

More

tem

condi¬

is

tion in 1930.

What

it

shifts in local economic

to

in

hour, of higher real in¬

special attention

necessary to pay

in

1957, Cameron K.
Reed, President, announced. While
only a modest increase in net as¬
new

governmental

the

been

older

of

stable

comes

the market

on

even

strengths, rather than to dwell

•

tendency for houses to stay
slightly longer than

some

a

markets

equally

importance in this

position of

of stable prices, of greater output

it

business,

we

inefficient

nection

financial institutions.

our

Of special

hazards

a

of

loan

vantage in the market, thus,
softening will tend to affect

spending for defense now
heard in all quarters; it

brought

tively

And

tax

the

the

Another
important
source
of
strength is the very healthy con¬
dition of

outlook

mean

standpoint

and

being
has

we

per man

creased

New Peaks

we

against

the

But
this

tion.

least

hard.

long

demands.

months

The Federal Reserve appears to
won
the battle of

at

the

for

want

we

capacities;

our

influence.

faction.

con¬

important in the future.

be, first, monetary and
policies, and second, inter¬

ment

Dividends Set

Weimer

to

temporary

United Funds

M.

have

be

main

Arthur

of

uncertainty

national

Ultimately,
manned
satellites
with provisions for their crews to

will

It is essential that

building

agers

nomic stage.
The two ma¬

seem

strong

in

at the

provide; the research
development programs of in¬
dustry, universities and govern¬
Master's Degrees. Jobs in business ment,
largely a product of the
are
becoming somewhat harder to postwar years; improved mana¬
get. Hence, students are taking a gerial ability; the savings held by
renewed interest in their
studies, many people in every walk of life;
a fact which gives me some satis¬
and many other things.

savings

eco¬

areas

capital

advance

from the standpoint of college
seniors
and
candidates
for

Since the year ahead looks fav¬
orable for the savings side of the

role than usual

jor

be

future.

these

year,

the

to

for

keep

elec¬

an

credit

from outer space.

as easy to get as
All of these factors may
tend to stimulate savings.

last year.

run

uncertainties.
It

on

possibility

Jobs will not be

tinue

ational

e r n

may

Demands

in-

Incomes

remain

dollar

put per man

hour, and

expand beyond

to
protect
businessman.

savings

good.

we

situation; and it is not good if

mutual funds.

in

fastest

want

to

considered

be

good if

it is not good if we want a
tight
labor market; it is not good if we
like a "boom and bust"
type of

appears

first

the

The outlook is not

*

highly competitive markets, rela¬
tively stable prices, rising real
incomes, in"
'• >"
"two most fundamental technical" creasing pro¬
breakthroughs of all time," the ductivity, that
article comments on how each was is, higher out¬

not

prices; it is not good if
to

in

borrower and builder.
The year ahead will be charac¬
terized by limited total
expansion,

is

rapidly expanding
in history; it is not good if

want

we

Corporation,

sponsors

National

outlook

the most

year

1930. Turning to housing
specifically, Dean Weimer foresees around a million dwelling
units starts in 1958, a few more than in
1957, better cost
situation, and slightly more favorable lending terms to the

space
*

cember

University Dean reviews current business and real
trends; does not believe the near term business outlook
discouraging; and concludes that savings and loan business

estate

National

discourag¬
fact, the outlook from
points of view is good.

In

many

required to keep this country
top in terms of world wide

are

the business outlook is

ing.

Dean, School of Business, Indiana University

Optimistic Outlook

Personally, I do not believe that

,

and of the American

community generally.
to progress

is

It

leaders.

basic urge in these

may

their

pioneer

other

sources

identify.

a

have

resents

a

that

we

or

and

spirit

that it rep¬

major source of

strength

and to a large degree

economy.

from

from

can't even,

We know that this

the key to
ness

come

ancestors

of progress is present,

now,

j^iness

The desire

holds

the future of this busi¬

of

the

entire Americas

.

The Commercial and Financial Chronicle

(2824)

16

dividend

current

conservative.

By WALLAjCE

small

a

"Uncle

increase, from $1.80 to $2 for

THE MARKET... AND YOU

instance,

yield

on
this issue
above-average 5%.

STREETE

to

U.

these weren't immune to sink¬

log of 4,600 of the machines.
upturn in home construction
ing spells and Boeing, which Despite a far higher monthly
activity is American Radiator
lost out in a bomber competi¬
production than originally which has had
rough market
tion
with
North
American
anticipated, the backlog is
going for nearly two years. In
around
Aviation, was a bit pressed still
5,000
of
the the
process more than half of
when the
contract
was
machines. Moreover, payment
the value disappeared after it
awarded.
for them is usually spread
had posted its high in 1955.
%
t|s
*
over a period
of from three It was still in the
process of
While plane business is al¬ to five years to bolster future
backing off to new low terri¬
most guaranteed to be one of earnings. This year's profit is
tory since 1949 this week. The
the
sturdier lines in
1958, expected to be in the neigh¬
company suffers badly when
prospects elsewhere weren't borhood of 80% more than volume is
cut, its operating
nearly so favorable and the 1956 results and the 1958 pro¬
profit margin dropping from
market reflected it fully, jection is for an additional
more
than 8'% to only a bit
notably the steels and motors. 50 % increase in profit over better than 3% this
year. The
So far steel operations this year.
reverse
is true, too, and on
%
*
*
haven't shown any ability to
the housing units being pre¬
The issues that have been
rebound, and the fact that a
dicted for the next two years
couple of holiday weeks will most depressed were logically the
company could again earn
curtail output even more, favored for a rebound. Some
around the $2 per share level
don't offer a pattern for much that have been slashed in half
that prevailed in 1954 and
significant change for a while valuewise included Diamond 1955. The stock
currently is
longer. Motor production isn't Alkali, St. Regis Paper, Gar¬ also
prominent on the "well
any shining light, either, and rett Corp., Owens Fiberglas,
deflated" lists.
Central
and
Ana¬
plant shutdowns by Chrysler Illinois
to

jolt this

conda.

Interest in

An

Ragged Oils

Over-the-Counter Issues

Improving Packer

There

<

Meat packing shares have
trims, too, been out of favor for a dec¬
chilling note for this ade, the steady rise in costs
group and the petroleum is¬
eating into the profit margin.
sues were
ragged more times Swift & Co., however, seems
than not regardless
of the to have reached a turn for the
overall market tone.
Coppers, better, mostly because of im¬
which had gotten a bit of a
proved plant operating meth¬
lift from spreading produc¬
ods and automation. The com¬
tion trims in this
industry, pany has been mentioned a
were
mostly back in a rut bit
prominently as a candi¬
again and did little decisive.
date for increased earnings
Oil

were

S.

diplomat

recipients* of

asserts

production

the

predilec¬
quality stocks in

tion toward

the

some

was

would be
listed

notably
missile

tling

immune than

more

shares

of

tions

the

to

market

the

that

market

counter

sick

ac¬

indices,

engaged in the

some

business

where

star¬

could

growth

be

achieved from the vast expan¬
sion that

perpetrating "shameless deception"

is due in this field.

Electric,

which

Cites

businessmen.

cases

of

"utter

Each

there

year

literally

are

thousands upon thousands of pages
in the Congressional Record and
Committee Reports 011 the subject
of foreign aid,

describing

the

"reentry"

recover the
pose cone shown
that have been
neglected ing around at the poorest
through the long bull market level since 1949 and its yield dramatically by the President
in his television talk, has one
were
winning favor for a runs close to 8 % at recent
of the more consistently prof¬
levels.
change and Procter & Gam¬

ble

and

Corn Products

*

were

*

itable

*

records

for

a

research

prominent

range

o

f

tivities

ac¬

taken

ter¬

many

SpruiIIe

Braden

today.

organization and I may say for

the selfish reasons of the

bureau¬

in ICA.

tional

buy every¬
The Byzantines

that they
tried to buy
stay bought anymore than
of our so-called friends do

didn't

and

They disregard na¬
interests and the original

of the program.

purposes

can't

you

money.

friends

eration both of

crats

but

thing for

ratic pressures
for the prolif¬

of

I'm

felt that they could buy diploma¬
tic
victories
but
the
so-called

bureauc¬

function

de¬

much for getting money in

as

body

ICA.

are

meas¬

as

the proper appropriations as any¬

Administra¬

There

to

scientific advance

our

just

tion, otherwise

rific

naivete, the ingenuousness of the
American public in that we seem
to
believe
that
anything
and

pendent purely on money.
Sure, one needs money!

International

as

Uncle Sam, that he came to
"Uncle Sugar" and now
"Uncle Sap."
They laugh at the
be called

ure

Cooperation

known

from

money.

the

by

ex¬

game.

President Nixon seemed

that

und.er-

are

loans

in

everything can be bought with
You heard it when Vice-

enormous

In

Shameless Deception

this

cannot

that

money

and all the

as

them,

upon

that

the

showering

are

forcing

arms

we are

forc¬

The result is that

them.

upon

foreign
ali

absorb

we

them,

upon

these

process,

countries

ing

bankrupt the United States

we

we
frequently are distorting the
and I
economies and bankrupting those
mean no less than that—there has
countries. Let me just read you
been a shameless deception per¬
what was said by my good friend,
petrated by these bureaucrats on
Pedro Beltran, who was the Peru¬
both the Congress and the people,
vian Ambassador in Washington
and I am sorry to say on the Pres¬
for some
years, owner of Laident and the top echelon of our
Government. In the final analysis, Prensa, a great newspaper in his
the public in a democracy is en¬ country, a candidate for President
and a very keen international ob¬
titled to know what is being done

shameless

A

deception,

with the taxpayers, money.

In this

neither you nor any of the
taxpayers, nor any member of
Congress, really knows what is
going on.
These bureaucrats play upon the
of

sentimentalism

the

United

States

people. Let me say narenthetically here that we in the
United

States

mental

people

in the world,

this

In

none.

the most senti¬

are

whole

foreign aid there is
measure

a

subject

bar
of

considerable

crats knows what an undeveloped

is, they can't define it.

They

between

a

primeval

zation—each with all the unending
variations

of

economies,

cultures

religions. They appeal to the
public by alleging that
o t h e r
peoples want the same
things we have, despite all the
many
differences in educational
and spiritual values. They ignore
the
happiness that those other
peoples may enjoy in an attempt
and

American

He said:

server.

"If
to

relies

nation

a

live

.

.

it's

.

and

harder

to

forge its

making

no

doomed.

it finds it harder

get on its feet and

future

own

handouts

on

future is

As time goes on

effort

It ends by

...

develop

to

its

be self-support¬

own

resources

ing.

As long as such a state of af¬

or

fairs prevails, such a
never

tinue

of

come

country will
but will con¬

to

age,

be dependent cn others
prospects for the future.
"It should be realized that pri¬

without

of sentimentalism.

Because no one of these bureau¬

civilization,
such as we have in many parts of
the world, and a primitive civili¬

the

of

confusion"

tended, along with playing the Communists'

system
next year.
Despite the out¬
that enabled this country to
Some of the
look, the stock has been loll¬
quality issues

fected

people, the Con¬

on

exploratory traveling commissions

appointing

can't define what is the difference

Sjc

are

Scores Washington's "favorite pastime" of

of inflation.

cause

p e in¬

.

foreign aid

our

and the President; and insists our hand-out policies are
actually losing friends. States our foreign lending is a vital

area

Cook

j

.

gress,

case,

section.

:

;

laughing at the American public's naivete in believing every¬
thing can be bought withmoney; charges ICA bureaucrats are

market

latest

;

Argentina, Colombia, and Cuba

an

The
"spare time" issues mand and as a dividend in¬
selling pressure. It was
also have a loyal following, crease candidate as well. Its
enough to spur hopes that the
indicated yield
of
elusive yearend rally might including Brunswick - Balke - present
Collender which is riding around
314%
is reasonable
be in the making at long last.
high in prosperity largely be¬ for a growth item and earn¬
*
cause of its bowling alley pinings this year will be more
In keeping with the eco¬ setter. There is no
sign yet than double the present rate
nomic outlook generally, the that the saturation
point has so an improved payout is a
aircraft-missile items showed been reached in pinsettei; in¬ likely assumption.
the
most
Brunswick
"'V
persistent invest¬ stallations since
r;'.
ment
favor
although even began this year with a back¬
The stock favored for an

the

'

% ,*

cleaning up kept ness to a degree tnrougn its
General Dynamics, with
slightly ir¬ production of oxidizers used
the support of its large
regular in spots again this in rocket fuel systems.
amount
of
defense
work,
week but for a change the list
Popular ''Spare Time-ers"
shares both in the missile de¬
showed a bit of resistance to

were

By HON. SPRUILLE BRA HEN*
Ambassador to

Former

Missile Beneficiary

Yearend.

the stock

Sugai" Now "Uncle Sap''

..

the

push

would

Thursday, December 26,1D57

.

ultra-

is

Even

.

.

vate

capital

achieve what

can

no

public treasury can do. When con¬
fidence

has

amount

of

been

the

established

private

capital

that

flow into a country is prac¬
tically unlimited. Private inves¬
tors will compete with one
an¬
may

other

.

.

But

.

the

out

seek

and

tunities

oppor¬

govern¬

money,

this, since
its 'prov¬
capital will flow
.

ment money, cannot do
risk venture is beyond
ince.
if

Private

the

investor

.

feels

that

he

.

can

operate in a free economy."
organization. One-fifth of its
Apart from stable earnings,
emplovees are engineers or
The Brazen Bureaucrats
year. One issue that there
are
good number of scientists.
has had little following re¬
When
he
says
government
:!:
*
*
companies that appear regu¬
money cannot do this, I would add
to have them mirror the civiliza¬
cently is Pennsalt Chemicals larly on lists of items that
that it should not do it or even
The market price of Cook, tion that we have in this country.
Corp., which formerly oper¬ might increase their payment
attempt to do so. That is one of
moreover, is still reasonable.
And, when these bureaucrats do
ated under the unwieldy next
the points on which the bureau¬
year, including Reynolds
It runs about 12 times earn¬ that, they do it on a purely self- crats are so
name
of Pennsylvania Salt and
completely brazen in
Lorillard in the tobaccos
centered
and
materialistic basis.
ings
where the shares
of They try to tell us as taxpayers in these matters.
Mfg. Co.
where yields of 5 12 % to 6%
This policy of government
to
similar type comnanies that this country that with our dollars
Pennsalt is a leading candi¬ are
available
011
only the are listed sell at 20 times or we can transform millions of di¬ government hand - outs is losing
date for higher
friends for the United States.
earnings next present dividends.
vergent people into valiant, in¬
more. It is capable of being a
You've
read
in
the
press
fre¬
year despite the general eco¬
*
-*
sis
vigorated and dependable allies.
nomic
volatile issue marketwise In the process, they completely quently over the last few years
outlook, mostly be¬
of the tremendous growth in geo¬
Continental Can is another
cast to one side all the spiritual
cause
since there are less than 600,earnings up to here
values of this country and they graphical area and number of the
have been restricted by heavy quality item that usually bobs
communist countries, millions
000 shares outstanding and, approach the matter on a materi¬
and millions of square miles added
capital expenses. Such costs up on such lists, as well as on
alistic and selfish basis.
with management holding
to their territory and cf the mil¬
are to be
sharply lower next those where good earnings
lions and
millions, hundreds of
Foreigners Are Laughing
more than half, the "float" is
year and a jump of as much next
of people that were
The people who get this foreign millions,
year are likely. With the
as a fourth in
added to them.
probably around 250,000.
Also, very .little
per-share earn¬
aid are alert to this situation; they

toying with their best prices
of

the

dividend

ings

is

covered

twice

over

possible next year
with continued improvement by this year's estimated earn¬
in subsequent years. The com¬ ings,
and further improve¬
due
next
pany is in the missile busi¬ ment
year,
the




[The
article
time

views
do

coincide

in

this

necessarily at any
with

They

realize that here is

portunity to get

so

great

so many

an op¬

billions

those

of the
presented
those of the author only.]

"Chronicle."
as

expressed

not

are

Ambassador Braden
of the
Dry Dock
Savings Bank, New York City.
*Ab

before

address

the

by

Trustees

is

said of a similarly pernicious
growth of the uncommitted or so-

called neutral nations.
How

can

we

make

Continued

friends

on

page

by

36

Volume

186

Number 5702

.

.

The Commercial and Financial Chronicle

.

(2825)

17

be somewhat slower than the his¬

toric rate, at least

Public

Utility Securities

t

Houston

'serves a

Houston

■-•000

Lighting

in

south

&

central

r

and

Galveston.

-about

5,600

eludes

153

The

square

area

contributes

in-

communities.... Princi¬

-

only
!

enues.

The

2%

of

''

•

-

all

*

Reynolds Announces

•,

company

substantial

very

and steel products,
cement, paper,

t

a m o u n

Executive

of

s

A ' .major

,

of

Reynolds
lion of electricity last
year, com¬
packing and food processing, pared with three in 1954 and none
shipping. ' ; - v':;
'*
:/■ v in 1951. There are a large number
The area has enjoyed
rapid of new loads coming on the lines1'

&

Co.,

120

I

in

increas¬

which will contribute annual

ing from 734,000 in 1940 to 1,405,000 recently. The
company's rev¬
h

enues

doubled

-

since

1951.

in the twelve
31

was

•/The

Net

months

1946.

ings

have

"irate is

stock

about

period,

-same

-

share

tripled

and

the stock has advanced from
of 10 in 1946 to

:

rsi..;.

high this

a

order

low

a

year

of

■

the

Amon

stock

•.-

/

stock

rights

basis

"'share,

This

a

is

one

for

-

April

tained.
,

.

-

.

and taxes

33.5% of

were

In

ratio

was

78.2% in 1951.
1

cost

72.3%

1956

gas

to

vs.

the

36%

of

revenues

customers.-

Chemical

plants

--

popular

franchise increased

tax

from

2%

to

4%,

some
offsetting ad¬
obtained, particularly
insertion of a fuel adjustment

clause

.

rate

in

its

schedules

already

industrial

advantageous
pany

this

year

because

(the

Senior

serve

much

opportunity

H.
Babcock,
also
partner, has become

High

also had to arrange

of

the




Box

899,

Salt Lake

City 10,
Utah

sales

investment

initial cost of about 14.5

an

has

become

revitalized
To Be

has

or

it

not,

that

as

a

really
the

is

Not To Be.

or

told their morale

were

we

was

way

a

or

home, give them

a
a

night out

Another very good thing to do,

business of

a

once

a

poker until three

developed

and

he

or

He

active

was

on

a

They used to meet
so
and then play
four o'clock in the morning. He and his wife

week, discuss business for

had

an

hour

or

industrial restaurant business — that is, they
would make up sandwiches and
stews, and bake pies and peddle
them to certain industries. They had gotten
up to making a profit
of $200 a week. One night he decided he didn't want to

and

left

concluded.

an

the
Not

play poker
meeting as soon as its business was
long, thereafter, he had obtained a divorce.
committee

Nothing like this, however, was the situation with NATO. I
to the belief, too, that Mr. Eisenhower
pepped them up a
little. They were waiting to see what Papa had
brought them and
he told them missiles.
They were obviously disappointed at this so
hold

with

New York

was

been

taxi driver was telling me of his
experience.
committee of the Veterans of Foreign Wars.

the firm.

Mr. Fullerton

and

what

a

service,

associated

attack

know

The business of
attending conferences and committee meet¬
ings, however, is not without its hazards. Only the other night a

and

research

advisory

doesn't

other and smaller movement.

With Rudd, Brod & Co.

their

-1)1 ATO

all those who make

them

Bradford W. Fullerton

of

his recent

one

is to keep

research.

expansion

So

organizing movements know,
adding members to your committees and thereby giving
feeling of self-importance.. There comes a time, of course,
when the committees become so big, and so
many members attain
self-importance, that some of the fellows decide to organize an¬

was

who

_

Share

he said he was going to increase the
lending capacity of the Ex¬
port-Import Bank whereby some of the peace loving nations can
borrow more money and
pay it back, maybe, and other nations
can borrow more
money and pay it back in their currencies.

associated in

I can't help but believe that this 'revitalized"

or

did something

to the delegates.

earnings

vs.

in

£ 1956 -were

$2.52 in 1955.

This year,

ments

in

real

estate

H.

are

Max

31, earnings dropped to $2.68, due
/

largely to 1 for 10 equity financ¬

is

R. R, Walbert Named

Ammerman, for more than 25
years as a specialist in real estate
law, and Irving S. Lichtman,'who

in

Write for

Dept. K

of

now

away

from

Reynolds & Co. also announced
that J. D. Penick has been named

charge

are

pundit is

fact that the way to keep up a movement—an organ¬
anything of the kind—is to have frequent conferences
and committee meetings,
something that will get the men

dent.

in

another

.

It is

ization

formerly Vice-President and Di¬
rector and Mr. Staley was Presi¬

partner

and

that they were getting listless in their common purpose.
they were not having enough conferences or committee
meetings.

as

Willard

dial

It may be

for

Mr.

the

and that

down,

elevated to Chairman

board.

words.

some

had become uncommitted but

elected President and Mr.

was

switch

I

cheer.

enthusiasti¬

suggestion that they

a

which will be under the manage¬
ment of Bradford
M. Fullerton,

new

$2.80

COPY

a

changes were
Reynolds &
Co., Inc., the company's under¬
writing affiliate. Frank A. Willwas

of

season
says

provincial mind, not geared to the higher level,
abstract thinking, I couldn't see that there was
anything wrong
with NATO in the first place.
There it is, a group of nations
committed to a common defense. There was no

&

Staley

the

Being of

executive

announced

Then

question, sort of like Hamlet's

full member of the
company's ex¬
ecutive committee.

also

slurs

now

Has

M.

was
named
managing
partner, succeeding Mr. Baker.

Charles

must undergo during the
obvious Republican, and he

to think.

formerly syndicate

founding

the evildoers.

result

manager,
"

we

an

.

industry.

FREE

Robert

which

pundit,

revitalizing business had he not had

City, prior to his com¬
supply for a long period of time ing to Washington, with A. M.
and increased costs will be taken
Kidder & Co., as director of re¬
care
of automatically in the rate
search, and also with the firm of
schedule, permitting savings from J." S. Bache & Co.
increased generating efficiency to
% 'Also associated with the firm as
flow through to net income, v
special consultants on invest-

explains why tha

to

and

one

quite satisfied that Ike made the grade. There are some ex¬
perts who contend that Ike would have been much better in. the

the

Partner

Gardiner,

speech and with
in whether he is

a

interest

more

not

founder

a

debate

by

Str eet, N. W., have announced the

com¬

something like NATO with

cally that there is no doubt that Ike did revitalize NATO
is good for all freedom loving
peoples, manaeed as they

of¬

fuel at

AREA RESOURCES BOOK

so

38

Staley, Senior Part¬

assumed

The company now has an assured

we

invest¬

of the firm,
newly-created
position of directing partner.
:
John
D.
Baker, Jr., formerly
managing
partner,
was
named
has

cents per mcf, with escalation pro¬
visions .to agree with field prices.

,

offers

and
with

large

and

the

a

Carlisle Bargeron

I have

is

coast-to-coast.

This^was

such

it, nobody else could do it.

But to revitalize

I hear

26-

18-year contract for the
purchase of natural gas for boiler
a

of industrial revenues, while petro¬
leum products and manufacturing
account for less than one-eigth

area

Exchange,

WASHINGTON, D. C. — Rudd,
Brod & Co., members of the New
York Stock Exchange, 734—15th

had

commercial schedules).

ac-

from

and.

ner

clause in the residential and small

count for about one-quarter

-

The

eight
vote.

language

oxygen.

the

were

commercial

a fairly high
receiving about
from industrial

"

1.

vantages

•-.The company has

load,

Oct.

approved

a

new

company

industrial

*

in

along

Stock

Thomas F.

ard

nego¬

ordinance, both

effective

revenue

there

balance.

-

of

francmse

Houston,

was

one

the

of

rate

new

a

While the

'generating
efficiency
increased
nearly 16%, thus offsetting half
©f the higher cost.
Fuel adjustment ..clauses
helped offset the

~

city

becoming

fuel

as

kw

the

slurring his words than in what he says — to expect him to
revitalize it strikes me as an impossible assignment. Yet that

Robert M. Gardiner

City, members of the

brokerage
banking firm

fices

to

rate

Lighting

50-year

new

a

the

franchise

While the average

natural

400,000

Jr.

3rear-old
ment

Au¬

order

higher

1957 Houston

with

in¬
creased one-third during 1.951-56,
of

In

add

1958-59—a

tiated

revenues

in

to

expects

with

ip 1956 compared with 40.2% in
1951; and including those items
-the

River

spending than in recent years.'

depreciation

excluding

York

that Houston could buy
power from that
plus some
from
other

companies.

years
.

Houston has been quite success¬
ful keeping costs down. Operating
expenses'

Colorado

lion for construction this year and
about $75 million in each of the

.

--

New

7-year,

capacity. To accomplish this
it expects to spend about $60 mil¬

a

,

the

1956

a

Baker,

York

in

capacity in 1958, 385,000 in .1959,
440,000 in
1960 and
285,000 in
early 1961 — about doubling the

ten

-

D.

New

up

pany

,

$43

at

John

the peak
substantial

capacity and to avoid
buying power in future the com¬

high percentage
not necessarily be main¬

.and may

■

on

last

broke

power

case,

housewives revitalize plants by giving them wrater or sun and
seen doctors
get a person back to breathing by administer¬

•

so

utility

'^The company is conservatively

;v common
v

Lower

build

capitalized, the equity ratio being
about 46% following the sale of

*

Texas

quarter,

with

in 1951.

ing

substantial

com-

equity compared

"less than 14%

.'

the average

on

care, of

Fortunately

in

thority,

vital, which in 1955-56 remained at
^-*-8,6% (later the figure dropped to
r -7,9%.
In 1956 the company earned

-nearly 19%

take

given

a

millions of people listening with

drought and filled all the dams of

v;v.A. ;
The company has been noted for
'its large earnings on invested cap-

.

to

rains

:

■.

it had to purchase

year

demand.

saying that in

I have

and

learnings and dividends, as well as
a; higher price-earnings multiple,
:

couldn't do
seen

a

is hopeful of
obtaining a 16%
reserve within several
years. , This

memos

—

like

many

it was Mr.
Eisenhower's job to "revitalize" NATO. Nixon

capacity

.

/--dividend paid in each of the past
three years)
compared with 60(3
in. 1946. Reflecting the increase in

Pentagon term

English

The company also is anxious to
build up
some
reserve

$1.60 (with a 5%. stock

now

a

mean what it used to mean.
As I hear and read the
pundits

three

15%
in
1959, compared with
budgeted 15% gain in 1957.

earn¬

in

or

doesn't

in¬

to

the

industry.' It expects revenues to
increase about 13% next
year and

the
dividend

the

in

is being used by the
pundits
NATO it sounds like a

with

staff was "alerted" and
"sprung into action,"
when the staff hadn't
got its feet off the table,
that it is apparent the

expects-' the

source

52%

office

rev¬

apiece.

more

connection

—

1957-59, with a very large
portion coming from the chemical

approximately $18,488,000

Common

or

this

it

as

they have come to be ohe and the same
"springing into action." We have seen so

years

Oct.

compared with only $3,230,000 in
*

from

about

crease

income

ended

$100,000

management

business

quadrupled in the
period, and more than

-■•postwar

of

enues

a v e

revitalizing a thing like NATO?
vitality, vitalize and revitalize

what

But

Madison Avenue term

Broadway,

-

population

go about

know

mean.

and

with

during the

up with a definite conclusion.
What I am trying to say, is just how do

..

you

au¬

meat

.•-growth,

us

may, to

/

Changes

realignment

thing that should undoubtedly disturb

a

come

thority and changes in executive
responsibility were announced by

For example each of five
customers purchased over $1 mil¬
power.

'synthetic rubber, chemicals, min¬
ing,; agriculture, cattle r a i s i n g,

Well,

period of jingle bells, something that
gives us sleepless nights,
is the question of whether
Mr. Eisenhower succeeded in
revital¬
izing NATO. It is strictly an experience in mental
gymnastics
because it is difficult, cerebrate as we

rev¬

v

'

expects its rapid
growth to continue. It is obtaining
new
customers which purchase

pal industries are oil production
and refining, natural
gas, manu-facturing of oil tools, ships, steel

of the News

By CARLISLE BARGERON

electric utility at the moment.

any

largest single industrial customer

covers

and

Washington

Ahead

including the 5%
annual
dividend, which may not be
a
"fixture") is 2.9%. The priceearnings ratio is nearly 21 times,
possibly the highest P-E ratio for

Steel contributes
10%, utili¬
1,400,- ties 8% and a large variety of
Texas, in-- other industries the balance. The

miles

From

recently

(not

over

eluding the large cities of Houston

■

has

stock

each.

Power

Lighting

been
selling around 55V2 com¬
pared with the approximate 1957
range of 61-46y2i At 55V2 the yield

Lighting & Power Company

population of

pe¬

"

By OWEN ELY

Houston

during the

riod of heavy construction.

ing

the twelve months ended

Oct.

last spring and cool weather

which

reduced

the

years

has also,

down

the

reserve

rate

no.

of

doubt, slowed
increase.

of building up

a

With

good

of capacity, which will re¬

substantial increase in
.capitalization, -the management
feels that while per share earn¬
quire

a

ings will continue to show
ward

known

locally for his

ac¬

tivities in real estate.

air-rcondition-

ing load. The additional dilution
resulting from the three 5% stock
'dividends paid in the past three

-the policy

well

an

trend, the rate of gain

up¬

may

V.-P. of

-

-

<Special to The Financial Chronicle)

SPRINGFIELD,
Mann
formed

Investors,
with

111.
Inc.

offices

at

Horace
has been

With

Blyth & Co.

CHICAGO, 111. — Richard B.
Walbert, in the Chicago office of
Blyth

Form Horace Mann Inv.

Hapberg, Buch?n?n

&

Salle

St.,

Co.,

Inc., 135 South La
nationwide investment

banking firm, has been elected
Vice-President, it is announced.

a

—

216

East

Mr. Walbert, who will continue
as

Blyth's midwest syndicate man¬
joined the firm in 1953 after

Street to engage in a se¬
business.
Officers
are

He

Manley

Buchanan,
ciated

Tex. —As

Hagberg

A.

Jr.

with

will

of

Jan.

and

become

J.

1

D.

asso¬

Securities
Cr»"~r>^ny, Firc;t National Bank
Building. Both are officers of M.
A. Hagberg & Co., Inc., which is
being dissolved.
Municipal

ager,

Frances, President; L. W.
Mimmo, Executive Vice-President;
Irving F. Pearson, Vice-President;
and Mrs. Edna May Siebert, Sec¬
retary and Treasurer.

Municipal Sees.

DALLAS,

Monroe
curities
Charles

18 years
is

a

director

of

the

executive

Central
Bankers

committee

("Special to The Financial Chronicle)

B^ond

Club of Chicago and a member of
the

G. M. Greene Opens

with Lehman Brothers.

of

the

States Group, Investment
Association of Ameria.

SAN

FRANCISCO,

Calif.

—

George M. Greene is conducting a
securities busm^ from offices at
348

Lombard

Street.

The Commercial and

Financial Chronicle

.

.

Thursday, December 26,1957

.

(2826)

18

-

News About Banks
»

i

.REVISED

,

r

Rubenstein,.

Law as

Y.,

N.

Brooklyn,

was

President of

by Chester A. Allen,

pointed

been

Mortgage Loan and Real Es¬
tate Department since 1931.

the

ap¬

Executive Vice-Presi¬

an

Bank, >7
announced on
The

dent of the Chase Manhattan

it

York,

New

was

*

*-

-

Hanover

.

»

Bank

York

New

by I George
Champion, announced on Dec. 24 the election
President. Mr. Ross, who continues as Vice-President of Charles H.
as officer in charge of the bank's
Bush, personnel department;
Dec.

19-

department, formerly was a Frederick J.. Millett, pers o n a 1
r/.:: s:
'1..
' 'Kv. •. trust security analysis; and Ar¬
Joining the bank in 1927, Mr. thur E. Quinn, 41st Street branch.
Ross in ensuing years became a All were formerly Assistant Viceloam officer and also supervised Presidents.

trust

Vice-President,

special investments for the bank.
Before his appointment as head of
the trust department he was in
charge of the district group re¬
sponsible for the bank's business
He was ap¬

the Middle West.

in

pointed to the official staff as an
Assistant
Cashier
in, 1936, ad¬

appointment

Assistant

as

the

announced

also

Bank

The

Vice-

Bogin, will
review and estate analysis; Walter
A.
C a v an a ugh and Gerhard
President

foreign

Dreyer,

James W.

department;

Cherry, out-of-town di¬

John B.' Crouch, 34th St.
Y. Freed, credit de¬
partment; Donald R. Hassell, pub¬
ident in 1942.
lic relations; A. A. Macdonald, Jr.,
ft
ft
ftcorporate trust; William R. Mor¬
Arthur Kunzinger,
64, retired ris, personal trust order depart¬
Vice-President of the Chase.Man-*
ment; Alvord D. F. Stearns, secu¬
hattan Bank in. New York, died.
rity analysis; and Stanley S. WeyDee. 16. Mr. Kunzinger began his
ant, 41st Street.
banking career with the old Equit¬
ft
$
Second Vice-President

vanced to

in 1939 and was made a

first

vision;

office; Dale

In 1948 he became

able Trust Co.
the

Vice-Pres¬

the Chase
office.

of

manager

The

ft.

York announced the appoint¬

Robert

of

announced

by John

T.

of the Bank.

Trustees

O'Connor

T.

Lester

becomes

and Norman RyVice-President, William J. Blaikie
associate economists.

Lewis

E.

Urquhart

been

Madden, Chairman of the Board

George. E.. Cruikshank,

ment: of

execu¬

as

Arthur

and

J.

Assistant
Vice Preside n t s, and John J.
nomics
Department which pro¬
Dowdell, Assistant Secretary.
duces the Monthly Letter on Busi¬

All three are with the bank's Eco¬

ness

O'Connor

Mr.

and Economic Conditions.

Formerly Mr. Cruikshank was a
Senior Analyst, and Mr. Lewis and
Mr. Urquhart were official assist¬

ated with The

ants.

of

,

/avings
served

ft '

ft

ft-

dent and

Joseph F. Emmerich and Charles
Itosebrock, former Trust Offi¬
cers,
have been appointed Per¬

Mr.

,.

A.

sonal

Pension

and

respectively,

Officer,

Chemical'
New

Officer

Trust

Trust

Corn

Exchange-

on

Dec.-19 by Harold H. Helm, Chair¬
man.
Emil J. Horn has been pro¬
moted to the

ficers

AIL

position of Trust Of¬

are-

with

Fiduciary ; Division

bank's

the

at

30

associ¬

Assistant Vice-Presi¬
Secretary of the Bank.

as

who is active in
public relations pro¬
joined The Emigrant Indus-

Blaikie,

Bank's

gram,

rial

Savings Bank in 1948

as

a

of Veal' estate specialist. He has been

Bank,

wa& announced

York, it

the

become

Emigrant Industrial

Bank in 1945 and has
successively as Attorney

Record,

;

Voute,

Broad

Street.

George E. Post and William E.

Swinyard, former Assistant Comp¬

Assistant Secretary of the Bank's

public relations department since
1954 and, as Assistant Vice-Presi¬
dent, will continue to be engaged
n

public relations and promotion.

Mr. Voute, who has wide ex¬
perience in commercial banking
banking, has been
with The Emigrant Industrial

and investment

trollers, have also beep appointed Savings Bank for 26 years, prin¬
Senior
Accounting
Officer
and cipally in the bond investment de¬
Senior Auditing Officer, * respec¬ partment.
tively, of Chemical Corn-Exchange
'V Mr. Dowdell first became asso¬
Bank, it was announced on Dec.* ciated with the bank in
1940, left
20. Other appointments are: Au¬
.o serve with the U.
S. Navy for
gust
R.
Southworth,
Jr.- and three years, then returned to the
Nathan Zipperman, Assistant
Bank, where he has been Assis¬
Comptrollers; William B. Beam, tant
Personnel
Director
since
Assistant manager, International 1954. He will continue to be en¬
Division, Joseph F. Benning, Jr. gaged in personnel work.
and
C.
Donald
Ryan, Assistant
i'fi
<:
.

-

Secretaries Investment Division.

ant

Bogeri, former Assist¬

Manager, has been appointed
Secretary.
August Di-

Assistant
Paolo

William

and

J,„ Shepherd

have been named Assistant Mana¬
gers.

All

with

are

the

bank's

Metropolitan Division.
ft

Alfred S.

Mills, President of The

Rank

for

New

York,

Board
Albert

of

A'.

Savings
.

Trustees
H;

the

in

Bliss

has
a

of

the

appointed

Vice-Presi¬

G/SOhnitta, Jr.
effective

Assistant, Secretary,

Jan. 1.

City

that

announces

dent and'Samuel
am.

'ft" '

if

,

„

Mr.jBlisa celebrated his 40th an¬
niversary : with the. bank this year.
Coming to> the bank as. a book¬
keeper- in 1917 he; subsequently
served as Assistant Comptroller
ar.d Assistant

*Vicd-PreSidentL) Mr.

Bliss will continue

as

Manager of

the Third Avenue and 72nd Street
Office.

V

"

„

Mr. Schnitta joined the

bank in

J 928 and has been connected




with

new

bank

North

♦.;

board,

officers announced by

been

.t.

:

in tne business world, has
of Virginia

years

Richard D. Weston

are:

i'

Wooldridge, veteran of 47

Mr.

,

of the Time Sales

with The Bank

since May 1,

Department, ap¬

■

,

Edward Rasmussen

elected

was

Vice-President of the City Sav¬

a

ings Bank of Brooklyn*

Brooklyn,

Island National Bank

Hicksville,

increased its

Y.

N.

National

First

The

of

mouth

of Morristown, N. J.,

and

Virginia

Executive- Vice-President

elected

ft

ft

July 12, 1946.
mayor of Ports¬

on

Mr. Bartlett is

,

Jr. has been

Charles F. French,
if

The Long
of

ft

ft

ft

v

N. Y.
^

President

Department to Assistant Manager.

as

joined The Bank of
Vice-President on July

*:::

16,1952.

Iron Bank

'"

'•;'

-':

effective Jan.

;•:

4ft,'- J.

C. Buell will join

Richard

The

from $1,- 1, as was announced by Alfred J.
Bank of Virginia, Richmond, Va.
by the sale Mackin, President.
in the early part of 1958 as Viceof
new
stock
effective
Dec.
9.
Prior to joining The First Na¬
President responsible for Person(Number of shares outstanding — tional Iron Bank, Mr. French was
pel and Customer Relations, ac-*
a Vice-President of Manufacturers
226,050 shares, par value $5.)
cording to an announcement on
if '
ft
ft
Trust Company, New York.
He
Dec. 20 by Thomas C. Boushall,
joined
Manufacturers Trust
in
Dr. Joseph E. Hughes, chairman
bank President.
;
1939.
He was ap¬
of the Board of Directors of fe September,
The new officer will come to
County
Trust
Company,
White- pointed an Assistant Secretary in Virginia from the Wachovia Bank
Plains, N. Y., announced that the April, 1950, and advanced to As¬ and Trust Company where he has
stock

capital

common

to $1,130,250

030,250

.

recommended

have

Directors
the

that

stockholders

approved for distri¬

be

dividend

to

stock

5%

a

were

made and

approved by the stockholders.
The proposal will be presented
to the stockholders at their annual
meeting, Jan. 15, and if approveddistri bution will
be made,
promptly

the basis of one new
County

on

share for each 20 shares of

stock

outstanding.

now

stated that if ap¬
proved it is planned to transfer
sufficient funds from reserves and
Dr.

Hughes

Vice-President in Septem¬

several
he

when

its

business

in

out
'•

paid every year with¬

exception' since 1904.
;

ft

Frederick '

H.

of

President

announced

on

-

t

J

ft

Jr.,
Rockland-Atlas

of

Boushall said.

Southwestern

ft

Boston,

,

sale of

new

.

i't:

Vice-President

Newark

&

Manager
Department, to As¬
Vice-President in that cle-r
.

'

'

•

—.

■ ■

Chicago National Bank, Chicago,
of

Essex

the

National

Banking

Co.,

111., elected Raymond

Vice-President

Herman

a stock dividend, the com¬
cajfital stock of the Peoples

to

*

Directors
National

of

Bank,

ft

The

W. Foote a
Assistant

from

V icfe-Bresiaent.
ft

ft

-

C. Slocum,

Vice-Presi¬

ft

ft

ft

By

:
" *

ft

ft

ft

Newark, N. J.

mon

-

successor,

—

Rembrandt P. Lane was elected
a

his

1936, and the appointment of
Mr. John F. Tyler.,

stock effective Dec. 30.

(Number of shares outstanding
12,000 shares, par value 25.)

Dec. 17 the promo¬

tion cf Flemming Kolby,

ft

ft

President Francis H. Beam, of
The
First
National
Bank
of The National City Bank of Cleve¬
Sayreyille, N. J. increased its com¬ land, Ohio, has announced the re¬
tirement of Mr. John M. Storey,
mon capital stock frqm $200,000 to
$250,000 by a stock dividend and who has headed the Bank's Travel
from $250,000 to $300,000 by the Bureau since its establishment in
ft

ft

if

$232,500- effective
Dee.
10.
(Number of shares outstanding —
Mass.* 35,500 shares, par value $15.)

of the Foreign

sistant

a

National Bank of Laurel Springs,
,
.CU, N. J.
was increased from $225,000

'Hagemahn,

the

Bank

National

'

ft

to

increase the

capital funds to more than
$27,000,000.
It
was
poin ted out by Dr.
Hughes that any stock dividend
will be in addition to the usual
cash
dividends.
Cash dividends
been

experience
in management development arid
a varied background of oonsultattt
work with large companies, M>.

States.

stated

have

the

since

1951. He has had broad

1955,
Vicein charge of

appointed

:'A

undivided profits to

prior

years

was

President and placed

.

Director

Personnel

been

ber, 3952. He was in charge of the
bank's Central Credit Department
for

similar

1952,

since

year

recommendations

Trust

sistant

.

dent, and Paul N.

Mitchell, Assist¬
Harris ^riist
Chicago, IlL,

ant Vice-President of
and

Savings

Bank,

will retire at the

under the

end of the year

provisions of the bank's

pension plan.

..

:

•.

who has been with
retires as Vicein charge of the operat¬

Mr. Slocum,

the bank 42 years,

Philadelphia

Philadelphia, Pa.,

elected Paul J. Cupp to the board

President

ing

department.

Chief

in

Clerk

He was elected
3 939, manager of

of the bank, according to Frederic the operating department in 3946;
A. Potts, President of Philadelphia and Vice-Preident in 3947.
of the National.
Mr. Mitchell has been with the
ft
ft
ft
Fidelity Union Trust Company of
Harris Bank for almost 38 years.
Newark, N. J. announced on Dee.
DeHavcn Develin, President of He was elected Assistant Secre¬
18 the election of Walter H_ Stobl4 The Bryn Mawr Trust Company,
tary in the trust department in
as
Vice-President and of Gustav Bryn Mawr, Pa., announced that 1926 and Assistant Vice-President
Modersohn, Jr. and Herbert A. the B^ard of Directors of the bank- in 1946.
V
Berghof
as
Second Vice-Presli has elected Mrs. Mary S. Brady as
dents.
The board also announced an Assistant Treasurer and Harold
Mr. John N. Thornburn, of the
seven
additional officer promo¬ F. Bermel as an Assistant Trust. law office of E. A. Eklund, has
tions and named eight new of¬ Officer of the company.
been
elected a
member of the

partment.
f

The

-

■,

~

&

Board

ft

ft

of

.

-

Directors

v

*

v

(

ficers.

Mrs. Brady was associated with Board cf Directors of the Uptown
Stohl, in charge of Fidelity The Bryn Mawr National Bank ;£pr National Bank of Chicago,. III., to
Bond Depart-;, a number of
years priof to join¬ fill a board vacancy.
ft
ft
ft
ment, joined the bank as a bond ing The Bryn Mawr Trust Com¬
trader in 1947.
He was named
pany when the two banks were
Stockholders of The Northern
Andrews,
Assistant
Vice-Presi¬ Municipal Bond Department Man¬ merged, effective Dec. 31, 1954.
Trust Company, Chicago, IlL ap¬
dent will be in charge.
ager in 1951 and appointed Assist¬
Mr. Bermel who joined the bank
proved on Dec 17 an increase in
*
i.i
ant Treasurer in 1952 and Second
earlier this year, came to the Brm its Capital Stock from $9,000,000
Vice-President in 1954.
The Boards of Directors of J.
Mawr Trust Companv from
the to $10,000,000 and the issue of
Mr. Modersohn started as a Main
Ilenry Schroder Banking Corpo¬
City Bank: Farmers Trust Com¬ 10,000 additional shares of stock
Office clerk in 1912.
He rose to
ration
New York
and
Schroder
as
a
stock
dividend. The stock
pany of New York Citv, where he
Chief Auditor in 1946 and was apTrust Company
New York have
was
a
junior executive in
the dividend was payable to stock¬
'-"^r»ted Assistant Comptroller in
elected Eric
F.
Lamb
as
ViceTrust Administration Department. holders of record at the close of
1948.
President, resident in Brazil.
ft
aft
business Dec. 17, on the basis of
Mr; Berghof, in charge of the
one
share for each nine shares
Mr. Lamb has acted as special
Maryland Trust Companr. Bal¬
bank's
Central
Avenue
Office,
Md„
and
Randallstown held.
correspondent in Brazil for the started in 1918 with the former timore,
ft
ft
ft
Schroder banks since 1945.
Bank, Raudallstewn. Md.. merged
Irvington National Bank where he
By a stock dividend The. Com¬
under charter and title of Mary¬
'..A.
*
#
was
Cashier. In 1949, when Irvmercial National Bank in Musko¬
land Trust Company.
Union Dime Savings Bank, New
ington National was merged with
gee,
Okla. increasd its common
York, announces the election of Fidelity-Union, he was named As¬
capital
stock
frrim $625,000 to
John E. O'Donnell to the new of¬ sistant Treasurer.
Changes in ranking officer per¬
He was trans¬
$750,000 effective Dec. 10. (Num¬
fice of Controller. Mr. O'Donnell ferred to head the Central Avenue sonnel of The Bank of Virginia in
ber of shares outstanding—75,000
was
made Assistant Secretary in Office in 1956,
Portsmouth, Va,, were announced
shares, par value $10.)
on Dec. 18 by Thomas C. Boushsll,
1954 and
Assistant Treasurer iri
\ FfcTelitv- Union
also announced
.'-,r
$
y. .
bank President.
1956.
the appointment of Jesse H. Saul,
On Dec. 31 O*oar B. Wooldridge
By a 100% stock dividend the
Walter
A.
Harlow
has
been formerly
Second Vice-President,
gamed
Assistant Controller.; M. as Trust OTicer.. Elevated fnim v-'ll retire as Vice-President and Branch Banking Jk Trust Com¬

The

Chester J.

Eight

J

-...

;

the

of

Seaman

Ward Office.

continue

will

Law

Each

The

A.

Howard

the

Farmer

R.

O'Conheir of

was

bution.

has

Bank of

The First National City
New

promotion of four
of

William

.

B.

in the of the Essex County Office, Albert 5, 1937; Assistant Vice-President
department. He Hallowell, Jr. of the Transit De¬ and Cashier (Portsmouth) on Nov.!
has
served
as
President of the partment, Berne F. Keppler of the 24, 1944 (when the bank, acquired
bank's Quarter of a Century Club. American Office, Salvatore Licor- the Commercial Exchange Bank);
clia of the Equitable Office and Vice-President and Cashier (Ports¬
■'
-.ft
ft
ft
■
■.
'•
Samuel A. McKeown of the Credit mouth) on June 8, 1945 and ViceMr.

Emigrant Industrial

tives

and. the bank'$ board un- PorJsmoujth.*t
the" Tilde, Mr. Wooldridge will continue as-1
Sales Department; Paul F. Mallon sociations Svith the bank as con¬
of the Essex County Office; and sultant and as a member of the
Office;

John

loan and securities

Savings Bank of New York City

National Bank's branch

-

Mannix

Miss

Milton

of

cessor

3933. lie joined
formerly As¬ pointed to the post of Assistant Mercantile Bank in 1918..; : i d.. j
He came to what is now The
Treasurer; Harley G, Horner, Jr.
sistant Vice-President.
Bank of Virginia in 1933 as an
Mrs. Rubenstein was appointed^ and Albert B. Meserlin, Jr. to As¬
sistant Trust Officer in the Trust Assistant Cashier. He was elected
advertising co-ordinator in August
Assistant Vice-President on March
1956 and will continue in that post. Department; and Robert S. Blind
the bank.

Ross! has

G.

Company,
announced

Trust

Kings ' County

CAPITALIZATIONS"

Francis

Assistant

an

as

Vice-President,
and. Donald
S.
an Assistant Secretary of

and-Bankers

T'

..

The election of Mary A. Mannix as a Vice-President, Mildred
L.

'

NEW OPFICEHS. ETC

-

I

.

CONSOLIDATIONS'

-

! ;.r NEW BRANCHES

.1.

'ft,., „''.y V

#"], &

f\

.Vh 5

Department: John
Corcoran of the Central Avenue

of the Personnel

;•T'i •;—*

•1

this city. Albert C. Bartlett, VicePresident, *vill advance as his suc¬
anti will be .a member of

Harold H. Brittain

Treasurer are:

elected Assistant

Force have, been

.Secretaries.

Dry

Dock

Savings

Bank,

\T. Y.

plans to open their filth of¬
fice, Dec. 23, at Seventh Avenue
and Thirty-eighth Street. Harry

Bernard

-

Cooke

and

George-

R.

Mr.

•Union's' Municipal

Assistant

Manager

.

to

Assistant

officer

in

charge of

the

bank in

pany,

Wilson, North Carolina, in-

Volume

Number 5702

186

.

.

The Commercial and Financial Chronicle

.

(2827)

creased its

capital from $1,000,000
S2,000,000. The surplus fund

to

-

-

remains at $6,000,00fr and the undivided profits figure is approxi-

mately

$2,000,000.- There
in the par value

change
stock

which

share.

The

the

rate

and

an

remains

of

25c

of

the
per

has

been

share
a

paid

was

The Government market has

been backing and
filling a bit,
stays close to the highs for the year. It has been wailing for
more tangible help from the
monetary authorities, supposedly in
but

..

of 50c per

the form

total payment of $1.50 per share
the $5.00 par during the year
-

*

been

a
tendency for quotations, to be moved down somewhat.
these price adjustments, which have not been
very sharp,
have all the appearances of a
professional operation.
S

The

Headland

Headland,

$100,000

stock

dividend

Year-end adjustments

of

action

$200,000

effective

by

Dec.

are

of

a good demand around for all
Treasury issues. The need
to replenish liquid positions continues to
bring more commercial
banks into the market for short-term

:

v

their

At

-

-

—

We

Valley
Arizona
to

on

meeting,

;

record

of-

-

-

The Federal

the

10% stock dividend

a

lash month.

VNB

by
.

\

.

.

issued

~

on

basis

a

of

.

one

was

^

,

supposed

tions:
.C

prices, too, can be attributed to a mark-up'*'
of quotations by professionals.
With the cut in the Central Bank:rate, money quickly came out of
hiding,, the available supply of
bonds were rapidly absorbed, and
prices of these securities con¬
tinued to go up. All of this took place in the bond market because
the psychology
surrounding the money market had been changed

„

with the reduction in the discount rate.

from President Carl A.

Nonetheless, there was no
help from the monetary authorities in the form of real tangible
aid such as sizable open market
operations, or a reduction in
reserve requirements, which would have increased
the supply of
money and accordingly eased the "money market." '
> ;
* ;

Admittedly, there has been some minor assistance given to
by the Federal Reserve Banks, such as allowing

the money market

Thomas Road in Phoenix.

the

office"

timetable is: No. 51—Luhrs Build-

"float"

increase

to

fashion offset in

,

from

time

to

time

and

iu

this

.

,

53 — Oracle-Grant,
Tucson, mid-summer..
' -»
•
Completion of its Yuma office,
now under construction, will give
Valley-Bank; at least one office in

modest

limited way the

a

tightness that is to be expected
the money market at this time of the
year/
"
' •

in

fng, spring; No: 52—Yuma, mid¬
summer;- No.

.

each

of

state's

the

Impact of Lower Loan Demand

.

The. decrease in the demand for loans from the commercial
as well as lessening in the
competition -for the

banks

funds

counties.

14

will

-find

the

Tucson

;

area~

being served by seven VNB offices.

in

the

was

of

the

elected

the

to

of

Board

money

first the

with-the

division,

American National Bank,
,«s

.

>■

<■*.'■*

if

the

:

,

/

'

and

the sale of new stock, the
common capital stack of the First
Bank

of

Utah,

creased from $6,000,000 to $6,300,000 and from $6,300,000 to $7,000,000 by a stock dividend effective
Dec. 10.
(Number of shares out¬
standing—280,000 shares, par value
$25.)
;
" "
,

tf

;;;

.

,

Vlierden

the

interna-

Vice-President in

a

tional-banking department.

Royal

Bank

elected

treal,

of

W.

-

Canada,
H.

-

named

Di-;

Desmond

.

.

•

\

.

long illness.

in. the near future.

more

away

Prior to his retire¬

ment he had been head of

Because of the uncertain

in

the

demand

for

funds

Wagner

Co., in New York City.

Dominick & Dominick to

Waldo S. Kendall

away

Shaw

Kendall

was

associatedwith

Chace,">Whiteside,
slow. -Prior
:
-

he

passed

Dec."21 at the age of 80. Mr.

Kendall:

had

to

West

&

Win-

joining that firm

been President of. Mjnot,

Ken"ddir"& Go. of Boston.




than 10% of one's funds be
in
such speculative-growth
stocks, — and that this 10% be
funds
avail- made up of stocks of at least ten
Roger W. Babson
able to small,
companies. These should be comdeserving panies whose stocks are listed on
businesses. One of these may be the New York Stock
Exchange or
traced to trustees and conserva- on the American Stock
Exchange,
tive investors who
buy only the There are about 350 of these now
"blue
chips," — that is, the 30 selling under $5.00. -They should
Dow-Jones
Industrial
Stocks, go down to $2.50 or less, but then
They refuse to buy non-dividend- «double in price about every five
paying
stocks,
however v bright <• years. I know of no way to double
their future may appear.
•.
- money; safely
in less : than five
This attitude by trustees is es- years. The great factors are'TIME
pecially unfortunate since—- for: and PATIENCE/I therefore must
tax and other reasons—so much
give readers a warning.
•more money is now
being placed ?
There is something .about oil
ent

in

trusts

of

r

this

than

is

before.

ever

for

lack

more

put

of

Much

charities—such

\

as •

Hence, great

should

be

sums

Admit W.J. Roomell
Dominick & Dominick,

economic

to

any

the

and mining stocks

which entices

a

"intoxicates"

and ^ even

person'

'

£{....11

^

SS^
To

rribl

2

will

II

William

J.

funds

into

companies

Some /Risks

the

New

York

some

time. '

^

intelligent

opinion—is

my

risk

of

not

buying

stocks at present

bonds

Stock

about 4% to 4V2% are the favorite
investments of such trustees. Cer¬

tainly, unless bought at
these bonds

discount,"

a

not

are

likely to ad-;
price.- Hence, the only.;
their price can go is down¬
in

vance

way

ward!

I

believe

there

are

some

J

good bond

purchases now selling
at a discount; but even these are
no
hedge against inflation unless
they
are
"convertibles."
More-,

Trustees May
For

:
Be

Unpatriotic

trustees, banks,

ual investors to "take
seems

of

both

or

individ¬

CANCER LIFE-LINE

chances".

no

unreasonable and

France,

same

un¬

I

.

posters, exhibits and lec¬
tures,

i t i

e s

business

of

David

Levine. "A branch office ia main¬
tained-at.

York'City.

1182

our

^

They learn facts about

Broadway,

""**

New

{Special to Tiis Financial Chronicle)

f

.

ATLANTA, Ga.
Allen

and

Southern
tree

—

Louis F.

been added

to

the

Mrs. Nell H.
Henson have

staff

of

First

Corporation* 65.2. .PeachStreet, Northeast.

immediate
most

dividends.

savings went

dustries

such

as

we

new

would

could

mean

and death. For information
about

a

program

-in

your

plant call the American
-Cancer Society or -write

in¬

"Cancer"

now-

care

of your

local Post Office.:

call "growth speculations." This isthe

which

-

Originally,

into

oaneer

the-difference between life

a

Two With First Southern

canter

business and industry.

:

"

'

life-line of

education reaches people-in

erod¬

now

*

"!

"

Through films, pamphlets,

Spain, and Italy. The;

"conservatism" is

DIEGO,-Calif.— Stone & ing England.

Youngberg have opened

33-44

at

^

playing

have real

_

•

offices

.

,

you

yielding

on

Stone & Youngberg Branch
SAN

.

self-control,

.

Ninety-first Street to continue the
s ecirr

,

unless

with fire"

The great growth of these na¬
branch
office at 625 Broadway under the tions occurred before the inven¬
JACKSON HEIGHTS, N. Y.—
tion of Trusts, or Mutual Funds,
direction of Charles H. Watt.
;
or Savings Banks, which now
Douglas Associates has been
seek,
fof med "with

result in real trouble. Making

chip"

prices.

First-mortgage

diversification
waiting. Otherwise,
to your head

to

equal

"blue

-

:

Of course, some of this
will be lost; but the risk—

the

tient

success may go

rnorihy in such stocks is

man-

agement.

10%

readers, -when

broad

upon ~

p£

early

Roland B.

Exchange, has been with the firm
for

Insist
aIId

fields, but

growing

and

I * beg

stocks, to stick torthe^above: rules.

,

.non-dividend-paying
in

with honest

in

Therefore,

buying these non^dividend-paying

new industries.
The present atti¬
Dec. 31 will admit tude is like a church
trying to op¬
Stearns, member of the erate without a
Sunday School.
New
York
Stock -Exchange,
to This so-caled "conservatism" was'
partnership.
the basis of the financial downfall-

Exchanges,

partnership.
Mr.
Roome'who will acquire a mem¬
in

.

the New York and Midwest Stock

' to

admit

..

•

:

-

'££?

Take

bank -clerks to. steal,vand has sent
some otherwise good men to jail,

Joseph Faroll & Co., 29 Broad¬ patriotic. The future of our nation"
way, New York City, members of is
dependent upon our helping

Street, New York City, members
Exchange,
Jan.

longer

over, most of the convertibles are

Admit R. B. Stearns

14 Wall

no,

are

available for risk-growth companics which need them so much.. "

Joseph Faroll & Co. to

Now Douglas Associates

Waldo

fashion,

bearing obligations.

-

&

in a defensive

credit available.

market for fixed income

Dec..22 at the. age of 84 following- bership
a

move

favorable

Roome

passed

are

many reasons
for the pres-

.

Accordingly,,

on

Carl F.Wagner

Carl-F. .Wagner

.

it.

Every trustee should be compolled by law to put 10% of trust

Policy Expected

of the New York Stock

'

.

y

Treasury spending will take all of this slack.

..

Bellinger, Vice-President-

Cashier.

are

not well secured.

Stanley
was
Senior Vice-President, and

John D.

"

•

..•

Executive Vice-President and
-

being put to work.

reduction

a

Bishop National Bank of Hawaii,
Honolulu, elected Dan E. Dorman
rector.

in the short-term obligations,
becoming the favorites as non-

billion. The roduced demand for funds
by corporations will
contribute to the downward trend of interest rates. Government
expenditures may increase somewhat but it is not expected that

-

./

_»

These stocks should be ' bought ■"
during the low area of the Business Cycle.
This probably means
that tliey should nox.-be bought
now. It is also important that not

o m-

mittees

market.

$28
;

Mon¬

Howard

Vice-President.<t

"

,

bond

It is the opinion of
money market specialists that corporate
outlays for plant and equipment in 1958 will decline by at least
10%. This would cut such expenditures from $32 billion to about

Bank of America, San Francisco,
van

the

in

indications yet that this downtrend will be

and to make

'

CaJif., elected C. M.

outlet

picture, it is expected that the monetary authorities will have to
take some positive action in the money market in order to
help
to temper this decline. Easier money rates in the
past has been
one of the forces that has been used
by the powers that be in an
effort to curtail the decrease in business
activity. There is no
reason to believe
that it will not be used again this
time, so it
seems as though the not to distant future will usher in
important
positive action by the monetary authorities to ease money rates

in¬

was

an

The business pattern continues to
there are no

reversed

National

Association, Ogden, Utah,

C

studying

came

Easier Credit

By

Security

tion of good non-dividend -paying
stocks of honestly run companies,

Congres-

sional

supply of
has resulted

institutional/investors,

distant maturities

were

Denver,

'..ft

,

other-

largest demand

more

bank funds

tf.

,

of

will continue:to find

Colo.
,

that

more money being put to work in the bond market.
As long'
business is on the skids* .as it is now, there will be-a decrease
in the demand for funds-from this source ahctthe
available'supply

of

Emery, Vice-Pres- ~

petroleum

hands

has

as

At
Dr. Wilson B.

-

ident

bank;or; investment ; trust
should employ an Investment Ad-;
viser who specializes in the selec-

in

Opening of the Oracle-Grant of¬
fice

A

grown so

There

Some of this rise in

■

It

a.

now

v,•

'

accompanying the cash
dividend checks currently being
mailed, notes that the bank plans
to open its
50th office in micK
January at 7th/Avenue and.W.
"new

id

prices of fixed income bearing obligations, and this has been
due;';
mainly to purchases of these securities by individuals and institu-j;

Bimson,

1958

system

to have been a-signal that the veryV,
restrictive money policy of the
powers that be had come to an end.$
^
To be sure, there has been
a.very sharp and rapid upturn in the! V

1956.
The
total
represents
41.7% of the 1,390,000 shares cur¬
rently outstanding.

part, the

_

.....

the

and

In

Dividend-Paying Stocks

Ernest

-.

~;

Directors
:

139,000 shares, if approved. •
Stock
dividends
involving :a
total of 580,000 shares were paid
in 1937, 1941, 1944, 1946, 1949, 1951

.

mine,

1'

•

How to Pick the Best'Non-.

o

g

Gaunt, of Orlando, F 1 o r -

dend will represent distribution of

memo

mini-.

a

—making it unpatriotic,- 'eventually killing prosperity and stunting economic growth,

newspa-

b y • a
friend
of

a

.

Bank,

share for each ten held, the divi¬

A

,

Reserve,System continues to give only

the

started 40 years

was

'

-

approve

be

in

Phoenix;. 1
that date will be asked

recommended
To

movement

a

Minimum Aid From Federal Reserve

21,

-

of

National

much

see

today about the necessity of
helping small businessmen. Such

bills, at this time.

-f

Jan.

shareowners

for the downfall

cause

other countries.

some

pers

maturities, mainly Treasury

*

*

conservative practices said fco be the

;

Government

There is

a

10.

(Number of shares outstanding
2,000 shares, par value $100.)

as

•'

.

having some bearing on the market
obligations, but these operations are not
significant this year as they have been in the past years.

of

nearly

'Bank,

increased

was

to

;

.

stock

National

Ala.,

from

£

capital

common

portfolios in various trusts and plight of
small, developing businesses are relatable problems, according
to Mr. Babson who would
compel trusts to place 10% of their
funds in worthwhile speculative-growth stocks listed-on the
principal stock exchanges. This, the author insists, would
help small business and, at the same time, divorce present

of

And

-

closing.

The

The conservative

changes in reserve requirements. When no action is
taken by the powers that be
along the expected lines, there has

;

on

now

By ROGER W. BABSON

•

Dec. 15, making

on

Gelling Consezvative Funds

Governments

on

By JOHN X. CHIPPENDALE, JK.

at

per

dividend

Reporter

;

share on a
quarterly basis for the year 1957,
extra

:)' z

Our

-

no

$5.00

at

dividend

is

19

opposite of the policy of the..

toda?;

'

V

(

average

Investment

Fund

?WIGEI SOCIETY

•

The Commercial and Financial Chronicle

(23:x»

20

tended

to

slow

down

the

rise

in

Achieving Retail Price Cuts When
Raw Material Costs Go Down

bers of the Senate.

retail prices rather than accentu¬
ate it. Since retailers were under

obligation to sell the goods at the
prices fixed
by
manufacturers,
they were prevented from taking
advantage of inflated demand and

By PAUL EINZIG

started

and will not

this

The difficulties involved in achieving

more

lower retail prices

of lower commodity prices when
and

money

consumers

as

inclined to spend indiscriminately

are

by raising their prices above the

a

are

probed by Dr. Einzig in explaining why British firms do not
Other reasons
offered include foreknowledge that other cost rises will occur

change too frequently their fair-traded prices.

shortly and
that

there is "no point in making cuts now," and
inflation price - fixing has slowed down price

so

during

their

rather

costs

than

price increases too
previous increases.

increases.

resort

that

itself

in

rise

the

prices. But
during recent
both

weeks

Prime

the

Minister

and

the Chancellor

the

of

Ex¬

chequer r e peatedly urged
business firms

their

lower

to

prices.

Their

main

argu¬

than trade

reason

more

adjustment.

un-

responding to exhortaa Conservative Government.
And even though it would
be too much to expect industrialists and merchants to carry their
political sympathies so far as to
renounce

their

substantial

a

profits

in

part
to

response

of

Precisely

because

ward

appeal, possibly to
some
extent they may harden in
face of wage demands in order to
avoid at any rate, further increase
of their prices.
'

trend of

its

the

costs

their
terials

be

passed

without delay.

eumcr

months

manufacturers

con-

it

,

In addition

,

_

.

,

,

the

...

the prices of their products have

Tn

is

consumer

merchants to abstain from cutting wiiiing

f0

ue

in

cuts

through
technological progress. So far the
response to these appeals has been
by

costs

both

able

and

GffPf>tive

the

ex-

^The13National^Association
Manufacturers issued

to

rise

rise of four points

a

months.

There

is,

of

campaign.

a

in

the

12

over

al¬

course,

wholesale

prices

of

the retail prices of manufacturers.

much

difficult for trade

more

as-

it

manintenance

adopted

individual firm for its

by

own

by law courts.
this

has

be sold at the existing

of

stop inflation re-sale

maintenance

materials,

months

so

that it

before

to

cut

buy

non

in

the

has

to

if,

can

from

materials

raw

emerge

In the

port, fuel and above all labor, are
than off¬

more

set the decline in the cost

of

raw

materials.
This is what has

ing, to

been

extent

some

at

during recent months.
Tiumber

of

creases

which

increase

in

will

the

there would be

cuts

In

further

rate,

large

a

now

make

increases

time.

In

in¬

wage

necessitate

selling

their manufactures.

ing

happen¬
any

instances manufactur¬

anticipate

ers

price

of

point in mak¬

no

in

in

order

few

a

particular they

or

They

the

use

amounts
for

of

of

advertised
the

goods.

decline

production

with

in

that is spent in
matter

of

an

its

small

outlays in the
accumulate

to

saved

unions

na¬

So

ical

ammunition

for

such

a

year or

is

raw

attitude

response

plea

has

negative, the idea behind the
effort is

decidedly sound.

contribute to
rate towards

some

extent

purposes.

It

is

believed

lend

to

an

"boldness" to the matter and thus tends to

aura

"catch"

of

attitudes

of

and less work during the coming year.

wages

course, to insist upon

enlargement

—

make

it

to

the

the continuation—to

say

nondefense

the automobile, steel and other
-

be almost

as

certain that should

a

pay

of

a

;

unemploy¬

result of insistence

matched by indifference to

strong movement

politic

among

of

sums

money.

involving the expenditure

In the building trades, where
a

deterrent, resistance to steps

get activity going again

on

something approach¬

sound basis is stubborn indeed-—and will inevitably
subsidies.

There will

flaging

which

as a

powerful labor unions will develop demanding action

liberal
•

programs

as

-

political,

as

pressure

*

;

for further and

■*

always be

ways

more
-

and

of

means

camou¬

of the fiscal folly proposed—and this adds

some

precisely what the financial position of the national

of

ernment

more

adequate defense.

eliminating

programs now under way or
of social welfare.

at

even

year

or

or

politicians in

for members of the House and

a

an

third of the

all.

not,

election
mem¬

danger. No

!

is.

,

demands

and such

of

to

be

at the present moment

social

estimates

by the rank and file—and

Various guarantees, insurance

will involve
-have

one can say even

Future

calculated,

understood

being planned in the

proposals will be vigorously,

many

easily

greatly reducing

Whether distasteful to him

he is certain to find that such

violently, opposed by

to the

The President has spoken of

some

new

discouraging employ -

easier,

one

production to get things moving

more

unreasonable rates of

needed to

nothing of

cur¬

No

ought by all rules of logic and good management to be
put aside to make way for what has to be done in the way

been

any

or

lead to increased

all

of various

can

large

ing

mind

This issue is

in connection with the policy of

high costs have long been

the

Makes Extravagance Easier
Such

up

by the Federal Government

imagination of the voter.

It may




callv

of

labor'

by labor politicians who neither wish

improved production,

incurred

are

monopolistic

by

hope that there will be great willingness to consider

upon

...

proportion of required

a

ment increase in the months ahead

to

In point of fact,

provided if huge debts

name

Government's

two.

were

large

so

to.suggest such adjustments.

One

of huge

consequence

especially difficult to achieve

are

giant unions with reference to demands for higher

money
a

to bring a recession

always painful and certainly

involve, concessions

giant industries.

large deficits

necessary

are

again in such industries

that these groups think that better polit¬

distasteful tasks ahead of

Although the initial

as

of defense,

during the next

They

the

consumers.

It

if

really

end

the

in

-of "wait and see."

the

dare

nor

The ulti-

To most of these it would be

concern

an

controlled

lower

name.

Their influence will be the greater

present time since

adjustments

conceding

adequacy by the amount of

it.

end.

depression to

at the

page

name

it often appears

nat¬

their cost

cheaper

materials, they adopt

defense

measure

to'encourage

seems

longer continuation of it, will bring

rently pointing itself

We See

months
are

frequently the retail prices of
tionally

to

situation

believe, the long continued rise in prices has

quite unpopular.

raw

will continue

materials

raw

of

to

urally anxious not to change too

face

As

an

plenty of the

are

Readjustments Painful

can

Continued from first

There

major worsening of the current situ¬

The adjustments

wages

an

They feel that

only

to

mean¬

time increase in the cost of trans¬

liable to offset and

as many

goods

manu¬

the pipeline.

the

any

or even a much

come

factures produced with the aid of

cheaper

doubt,

mate remedy lies in the hands of

undoubtedly

v

be

in spite

cost

further wage demands.

price

else, offer ready fields for such

day ready to step into the limelight

them out in numbers.

spend¬

the

their prices

decline

prefer to

During the prolonged period of

prices. Most

plies of

raw

the

on

a

take

'

indiscriminate

refusing

materials.

retailers.

firms have fairly substantial sup¬

may

inclined

are

......

suiting from competition between

material bought before

ation,

they

very difficult to induce manufac-

.ab y. % chances of price cuts re-

the decline of their prices have to

than

Unless and until they

turers to

consider-

«id of

whenever

of the trouble

before

in

again

Without

whose prices are raised, it will be

It is argued

reduced

construction, defense, farm subsidies,

latter around to this,

income groups,

money

of

only the outbreak of World War II which

was

persuaded to resist price increases

by

Pj-oducts» has now become enforceable
that

had

ing.

sale price maintenance but re-sale

price

more

the ..growth

building, school construction, sub¬

professional economists,

many

the

indulge

sociations to impose and force re¬

year's Congressional

sue-

ever

It has become

The goods manufactured with the
raw

cooperation

campaign cannot possibly be

that

individual firms.

materials and the decline in

raw

whose

having

time lag between the de-

ways

It is pointed out

without

reinforced restrictive practices by

each

cline

new

'of recent legislation while outlawing ccssful. The root
collective restrictive practices has is that the lower

day after
day. The cost of living index rose
another point in November, mak¬
ing

Government s

"ie

statement

a

amounting to a rejection of the
appeal. And retail prices of many
goods continue

f°'\ * g°°d ** °f T stations should be addressed,
newed J?1*t.lclb™ un r
,e, 1
therefore, to the ultimate buyer
ence

oc¬

us

C°mC

benefit

already

brought that disastrous economic period to an end. The
ideas of Keynes and his followers made a
deep impression
upon the minds of the public, and even upon the minds of

to pay the higher prices,

oraer

a

with

Even

•• ■■

to.

Pr*ce reductions is the feeling that

retail

.

,

Road

demands.

that

force

can

has

of

threat

policies,
usually quite futile to point out that mammoth pro¬
grams of this sort which were to banish the depression of
the early 'Thirties failed
miserably of its objective and

pressed to act

However, the main obstacle

Restrictive practices under which

-

to the

on

ma-

raw

recent

during

„

should

of

a

To those who have their head set
upon such

Blames Consumer

Fair Traded Prices

decline in

the

or

activity.

stimulate

procedures.

down¬

a

hardly fail to

and the Lord knows what

ment was that

Dr. Paul Einzig

business

good deal is being heard about the "need" for

a

sidization of home

ing this obstacle to prompt price
reductions.

downturn

a

of

such

exhortation, by remov¬

own

is

rate

situation—and the approach of next

prices the Govern¬

ment is bound to be
on

there

the

election—could

relatively substantial and
they have become reasonably

reversed. Should there be

Government's

in

ordinary language almost always means the
spending of huge funds not raised by taxation but largely
through the banks. A further deterioration in the business

certain that the trend will not be

the

popular notion

spending is greatly to be desired in and of

government action under the so-called full employment act

become
until

being reinforced

are

resurgence of the

a

to

means
r

.

—which in

manufacturers want to avoid too
frequent changes, they will maintain their prices at the higher level
until the decline in the costs has

ions lor
tions by

•

reduction in business volume that

curred,

from granting wage increases.

have

by all

now

;

,

whenever

such

to

If and when the trend of retail
Their appeal to the unions in favor prices should turn, re-sale price
of wage restraint had a distinctly maintenance will become an obhostile reception, but employers sjtaele to the desired downward
ers

deficit

downturn

"

LONDON, Eng.—The Government's disinflationary drive has
entered a new phase.
Until recently its aim was merely to halt

:

already by the threat of

not

are

to get rid of—and it is precisely

aside.

after the

soon

things, unfortunately, which

be easy

Advocates of spending recklessly

;

stipulated by their sup¬
The manufacturers them¬
selves were reluctant to change
too
frequently the prices
thus
fixed. Any change in the prices
was a major operation and it was
worthwhile for producers to cover
out
of profits some increase
in
figures
pliers.

have

Thursday, December 26,1957

.

Franklin Roosevelt and his New Deal,

many

ever

.

type of program which ought

be put

of temporary shortages in supplies

consequence

good

a

.

a

security
exist

as

are

alert

spend ourselves weak.

and

not

are

not

neglected by

schemes and the like

great many billions in the future.

both

gov¬

are

courageous

if

we

We shall

are

not to

-

Volume

186

Number 5702

.

.

,

The Commercial and Financial Chronicle

(2829)

i

Continued, from page 3

labor

and

and* wages,

that

Economic Instability: Two

they

higher

than

costs

disaster

They

have

en¬

work for high

and

working
have
bought

men

every-

when everywhere around where
home, car,
there is evidence that capacity is durable household appliances, furgreater than the market can take niture, baby, and mother-in-law
care of n°w or in the foreseeable on the instalment plan.
Demand
future.
With overproduction at slacks off, and overtime is reduced
present prices unmistakably ap- or eliminated.. Then four days

market

justifies, and when all of
it together, they
realize
unanimously that the mistake has
been made, and they are stuck,,
They holler for help and want the
government to "do something.". ^
them

strikes.

couraged labor to

pacity

the

do

pearing in steel, aluminum, ce- rather than five are worked, and
nient, ..machine tools, heavy con- maybe three. For some there is
A man comkS into a wld room"^fuctibn^. .equipment,
machinery, unemployment. One week's re.'and starts a fire in the fireplacedurable appliances,
autos, tex- duced paycheck may be embarthen leaves.: A few minutes later','^et.als—does this complete rassing. A week's paycheck missed

I

We

mav

draw

sinmle analoav

a

•

,

else

someone

in

comes

^H^ hstr—they go on and on plan-

the

notes

other workers,
who must
higher prices because of it.

be

may

than embarrassing.

more

that the amount of
money in cir-

cuiaaon; including bank deposits,

everything

Nothing can wait.
Then
when they discover simultaneous¬
ly that they have all overdone it,

wages,
at

do

must

from
pay

does

Unjust Distribution

now.

Areas of Possible Dangers
duction

they bid up the prices
in the mistaken notion

labor

are

unevenly

very

tributed among the
of

amount

come

automatic pay

in¬
escalator clauses, or pro¬
ductivity increases. These things

have to be paid for, and the ones
that get the most must get it from

Those

these

things
burdens, such
and

other

who

but

get

not

the

well

the
on

are

fixed

off

as

Here is the

Those

benefits

ning f<fr;.<more factories. Houses Three weeks of missed paychecks
fire iust beginning to aet goin«
are.being built in greater amounts for some are disastrous. If this
and SdsfllS to tt~au»
.taSS&Sfl?
sold at present prices, becomes general, depression setA third man comes in. observes And, attempts are made to resus- ties
on the land, as repossessed
of

the

the

and

room

They are better off.
Those whose incomes increase in
proportion

those

But there

whose

economic power is greatest.

^hdustry by unwisely goods add to the overproduction

that, the

room is cold and clammy;.
though actually it is warmer than.it was, and he adds still-more fuel,-,
"and then he too departs.
When
t

•

^the first

man comes in again, the.
fire has had a big start, and it

downpavments^ and of new ones. Disagreeable as dedevices. 1 hen one business pression is, with all its distress
aild. heart break, it is the way by
which adjustments are made, as
^fe^gE f1^
j
5?
•

malallocated

isi^^a about them indeed.

hot.

comfortably

labor

we are fulfilling the needs of
Too much fuel the year 1957 now. The allocation

roaring, and the

now

is

room

un-

not

human skills and of material
business. Consumers are clamor-^resources. will be different in the
ing for goods at a certain time. 1960V.than it is now, and he who
added too

was

Business
*

other

tumble

men

scramble

to

with.

So it" is

soon.

each

over

the

for

neces-

goes oh

•

planning for the
when 1957 will not take off

196df^

and

is

wanted

from

to

corrected,

where

where

it

it

is
be

can

used, and - costs and prices are
brought down and brought into
new
alignments.
And business
men

on

capital is

shifted

contributing measurably
situation by their irre-

are

this

to

do

is

with another good
Competition enters into the

pany comes up

picture,

and the prices of the
products involved fall, or, if prices
are rising, they rise
less rapidly.
Actually, productivity some time
gets back to the consumer. A lot

increase

not increase

at all.

as

rises, or
They are

forced out of the

increase

idea.

do not

the price level

as

•

market, little by
little, restricting purchases a bit
here, a bit there. As this process
goes on, more people find they
cannot buy what they want. And
finally this brings the price-wage
spiral to

halt.

a

As wage earners will not take a
decrease in wage rates, they are
forced

to

take

decreased

it

in the form

for

pay

of

fewer hours
find complete

worked, and some
unemployment.
So the gains

of

his. hhnds,what he can produce is sponsibility.
labor turn out to be unemploy¬
satisfy their demands.
They bid incleed tnviting trouble. Of course,
ahnr Irr*«nnn«ihili<v
ment, bitterness, distress, and a
up the prices of the resources and- ajs'teel
plant, takes millions of
y i
conviction
that
the
capitalistic
the wages, and add to their.pro- do'llgrs Rebuild and a long period
However, business men's irre- of rubbish is talked about admin¬ system has broken down. It hasn't
;ductive °capacity
at a
feverish bD'tirtie. .'^'Moreover, a new steel* sponsibility is matched and even istered prices. But even adminis¬ broken
down, it has simply tried
'pace. Meanwhile, there is no up- l^lhht'tshould "be planned very - more than matched by that of tered prices are subject to compe¬ to correct the
excesses, and left
parent letdown in demand; con- carciull.y,
because once estab-*.'labor union leaders. The unions tition, though no\ as flexible as
alone, it will do it. Meanwhile
sumers
cannot get enough.
But lished," It'is sunk • capital which" demand more and more and still nonadniinistered prices. Adminis¬ the
economy slows its pace and
the increased supply is slow in" cannot
be used any other way- more, and they get it. There isn't tered prices must show flexibility those who .are
always prating
coming at first, then it increases a uxceiit'scrap; And big companies a business man or even a group in time, and productivity helps to about the
expanding economy and
little
Then comes the deluge and 'tike. the Steel companies must plan of them big enough, strong enough,
bring about this flexibility. But
its
needs
are
nonplussed.
The
the market wm not take what, is fbHgy(*al years in the future, or with guts enough to stand up when the increase is passed on to
economy will expand when goods
offered at the prices the business*-"-'when;they have more capacto a labor union and say, No, you labor unions, stockholders, man¬ and services that
people want are
men
expected.'to receive.' They ify'now "than they can use, it is will not get an increase in, wages agement, and consumers are de¬ offered at
prices people can af¬
Where in the textile prived of what is justly theirs.
have
overextendedV themselves,; fbl'^ 'fo go on enlarging outnut for this time.
ford to pay or want to
pay, and
The whole lafcior situation needs
and
liquidation, often at great'the 1960's.
The 1960's will take industry, some reductions have
when
business
men
and
labor
been made, this was because of to be reexamined, not just the
loss, with many bankruptcies, is care of themselves.
leaders forget this, they are in¬
sary

and resources

manpower

to

_

_

-

much

ity

unjust. A productivity
brings an advantage to
the group that enjoys an increase
in productivity, but that advant¬
age is likely to be only tempor¬
ary.
No firm has a monopoly on
brains, and just as sure as some¬
one
finds a way to increase effi¬
ciency, another in another com¬

are

are

their incomes

son

classes

holding their own.
people, probably a
majority, who find that

large

However, there is another rea¬
why handing over productiv¬
increases
to
the
working

-

As the price

tor increases.

off

incomes, but

'

discomfort

reason:

rises, many find their in¬
increasing faster than the
price level, because of these pro¬
ductivity, automatic, and escala¬
comes

pensions

better

The

level

heaviest

these

now.

served.

of

none

incomes.

of

most

on

get

those

as

fixed

those
so

bear

some

not

than

who

substantially.

of

purchasing power is
increasing very much now,
nor is
the velocity of circulation
increasing substantially. Then, if
this holds, the rise in prices will
level off, and perhaps cease. Per¬
haps declining prices will be ob¬

creases,

others.

increase

not

dis¬

working men,

regardless of whether they
in the form

not

This assumption is valid

Moreover, the benefits accruing
to

21

,

.

.

'

—iA1-

-i—

the only solution.

see :

how

-spending
-

It is

stepped-up
of

allocation

nnuccuv.,

the

correct

can

sheer

difficult,to.:-;r

High Priced Expansion

government^

marl-w'Hpwever, criticism

that

resources

has

does

hot, end here. At

an

time when

futile attempt to do so.

During

.ers' and

of'

depression

the

the

«««*?■
P hi
•
1930 s, people did without because
1

thev
tney

not
not

did
cud

4L

J.J

have
nave

the

1

money

hi

bankers' funds

plant

and

Then

wanted

thev

.tney( wanita.

.iiiui

came,

nf

for

they

what

stand

up

increases, and

....

which

and take anything business and

nrnfife'

pay too*

ple*

Escalator

matlc

tivity

,

wa£e

clansps

the

and

peo-

antn

aggravate

increases

situation

So

the

do

nroduc-

oo tne proquc

.

souices ol the companies they
lead.
They can be accused of

UpOll

^scalal°r clauses and auto

.

huv

thev-

thev

„nmnnnipt!

labor Want to foist

Only

increases.

ductivitv increases

the

not

are

pro-

that

at

auctwity increases are nor tnar at
all. They are increases that go becompany y°"d .the increasing productivity,
tion generated purchasing power
down
the
road
of
insolvency. 'and simply increase costs, further.
that simply accumulated in finan¬
What kind of sense of responsibilmatter ol productivity incial institutions and savings bonds,
because the things which people
ity do business men have now ci eases needs to be thoioughly le
tne inin^s wmcn
peopie
rwklpwlv
examined. Here, from one point
much
much

needed
needed

as
as

to
to

war

nrodueproouc

>

k,

Meanwhile this war produc

tion.

t0Q much

.

for too much

can

lead

a

-

wanted*

least

"In

construction
when the war
nr»

up

not

were

The

mirehacino'

available,
foods ,a»d

durable

nnwer

flooded onto

people had wanted for \ears and
now had the money to buy.
It was
that

prices

would

go

nn

nav-

on pay

,

^f^hatThey' have"

categ011€s;,.Th®^ ..than, addauati
tban
was over, this pentadequate,

puiciiasin^ powei iiooaeo oinu
a
market which could not supply
in short order all the things which

inevitable

lecklesslj

and

,

fi
coming onto the market?

It may*be said that
of the

new

expansion,

a

,

lliey have

are

T} .

k

PP

hllsin_s

right to surrender,

moment

what

this

Management discovers
means

of cutting costs

?nd ~gement^ iunltton.

_

gieat part

company

investment is not for. rity
but for cutting costs

And it was inevitable too that... by installing labor-saving devices.
it would appear that demand was True,^but.fthe stuff has to be paid,

,

smTendering^whft

no

f

Process is.
ways and

cnnniies

.

.

are

consumers

and consumeis aic
reluctance
to
spend

showing

.

holders

meaning the
puts

up

secu-

the money

q£ )^g^r money raised or out
pj-ofj^g of the past. New equip-

up.

is

ment

purchased, or new ways
insatiable, and-to satisfy that de-; forj..,and if the consumers don t. 0£ doing things are discovered,
mand, more had to be invested, in want .-to* pay., foi it by buying the jmd the reward is cheaper costs
increased capacity.
goods, the labor - saving devices ancj greater profits. This reward
We have heard about the needs
very very expensive indeed. jg passed on without a single pro¬
of a growing and expanding econ- However' well-intentioned, a firm! |est to the working men. One need
omy.
People cannot talk enough - 5^ l:n^ towards bankruptcy
is no£
callous towards working
about that.
What we will need,...still heading for bankruptcy. And men £0 say that this is the group
by 1960, by 1970, by 1975, by any if b^flkruptcy is not the final re- that least deserves it. In the first
date 'you
want to
select, rolls su.lk' *mpaired fi"ancial strength piace> there is no sure way of
glibly off the tongues of political' wi 11 be ( the lot for many com- estimating increased productivity,
and business leaders, statisticians,,, panies now looked upon as being
is
not steady,
and it varies
and assorted other groups of hu- as solid as a fock.
It is a well widely from company to company
man
beings. The men have been known fact tha^t the liquidity of and industry to industry. Yet the
coming into the room and putting industrial firms'as a whole is be- unions gef it in advance, and even
on more and more fuel as if they
in& more
more impaired. Is it ge£ more than the increase in
couldn't
possibly
get
it
hot unreasonable to ask this question: productivity. It is also unfair to
enough And now it is so hot. that
it not possible that this period WOrking men. For where the promany are wondering what is to be
j

y«vitis latest, and
increase c"dtul

aoiie*

our

What About Future Needs? "

does not- end
there.
Business men who pride
themselves on being hardheaded
and realistic have set their heads
aside on the bar and have gone
all-out for more productive caBut

the

problem




the men get it, they

history?

But

this

is

not

the

only

score

against them. The kind of conduct
that is now going on is the kind
that intensifies,seriously the business cycle of boom and bust. For a
period of time, business men cannot
get
enough
resources
and

up

are

building

concentration of economic

a

power

and
the

only
.

income.

If

productivity
taking it

aiatalan® 1

awav

y.

they

get

increase,
from

the

stockholders. If they get more, as
many

dirty part now being so pitilessly
portrayed in Washington. That is
enough of a disgrace.
But as a
movement

arises

out

of

felt

a

,

.

Managements have

invest

prices loi what they Duy,
they "are not husbanding the reth

further

^,a

h?ust be written oil out ol pioiits

.

with facilities given over as

war,

nut

to, bver coming years. If

buy what they needed, or at leasf .nign
when
when

nff

M

say' ^.°.

,

to

nerve

blandly yielded and passed the
lncrcases 011j° the public, as if the
pu? f w0lUcl willingly stand by

to

equipment

^rriftev„

mncf

the

had

ne®s

of business
a

government is'''the prices are about the highest
appealed to to step up its expen-' they'have ever been, business men
ditures, in what is likely to be. a use. ■stpqfchold ere' and bondholdbut

about,

.come

necessity, but not because
managements with good busi-

any

do, they are taking it away

need, and it brings littfc by little
the
remedies
that
are
evolved,
conditions change. The under dog
becomes top dog and inflicts on
the new under dog as distressing
indignities as the former under
dog suffered. It is time that some¬
one
can
cut through the cliches,

slogans, half-truths, misrepresen¬
tations, and lies that have encum¬
bered the movement of organized
labor.

It

is

time

to

realize

that

viting trouble. The
shown

not

up

reason this

has

before is the fan¬

tastic rise in
borrowing, especial¬
ly the instalment plan purchases,
and the acceptance of the
false,
fraudulent, and utterly indefen¬

sible notion that unlimited credit
as

a
new way of life will insure
prosperity forever.

It

would

be

wise

for

business

labor leaders, bankers, and
government officials to ponder the
fundamentals of these things more
thoroughly than they seem to be
doing.
V

men,

•<

the
as

arguments against unions are.
cogent and compelling as those

in favor of them.

the

in

one

that

But there is

United

States

no

H.

today

dares

defy them by coming
presenting those argu¬

and

out

ments.

BEVERLY
P.

chip

away at the edges, without ever
getting to the heart of the matter.
And
business men, who are so

capable in selling their products,
are
completely incapable of op¬
posing the steadily increasing de¬
mands of unions. Indeed, business

incapable of de¬
fending
the
capitalistic
system
that has actually brought us the
highest standard of living in the
world. If socialism finally under¬
mines the capitalistic system, it
quite

are

ica

HILLS, Cal.—George
now

associated with

not to do business

men,

in

lessness

the

face

of

union

facet

F. Hutton & Co.

Counselors Manage't

(Special to The Financial Chronicle)

LOS

H.

ANGELES, Calif.—Thomas

Dobson

is

now

affiliated with

Counselors Management Company,
606
South Hill Street.
He was

previously with Dean Witter & Co.

E. F. Hutton Co. Adds
(Special to The Financial Chronicle)

LOS

ANGELES, Calif. —Roger

E. Dore has been added to the staff
of

E.

Hutton

F.

623 South

&

Company,

Spring Street.

of this incompetence.

Need

leaders

is

demands

from

E.

With

ca¬

pably, but to present it capably in
the world of ideas, to the Ameri¬
can people. And their abject help¬

Co., 9680 Santa Mon¬
Boulevard. He was formerly

with

will be due to the failure of busi¬
ness

Dotzler is

H. Hentz &

The most that is done is to

men

Hentz Adds to Staff

(Special to The Financial Chronicle)

only

one

E. Townsend Irvin

Not Mean Inflation

it is a mistake to
glibly that because of
clauses, automatic in¬

However,
conclude
escalator

and
productivity
in¬
which simply must be
paid for by the consumer, that
we
are in
for steadily mounting
inflation. We may be in for that,
creases,

Townsend

E.

Irvin, 11 mited

partner in Shearson, Hammill &
Co., passed away Nov. 19.

creases,

but

not

necessarily

so.

There is

good reason for thinking we will
not

suffer

under

one

this

way,

assumption,

but

only

namely,

Frederick P. Kimbley
Frederick
away

P.

Kimbley

Dec. 21 at the age of

associated
with
& Co., New

Kimbley

was

Shearson,

Hammill

York

City.

passed

50. Mr.

22

*

The Commercial and Financial Chronicle

(2330)

Continued

from first

Reviews

page

sizable

Investment

crease.

cf

$1

least

Some

of

idea

the

nature

this

the

growth can be had from
following Air Force figures

major

aircraft

manufacturers with sales

Opportunities

billion
(40%)
■in the next fiscal year and double
cr
triple within the next five
years, the impact promises to in¬
at

the

are

in

the

Indnstry

of space
further

he lists 10. In the interest

ment

a

the

production

Last

authorized
Bomarc

to

sites.

$139,300,000 for

of

the

week

Electronic

contract in August

in the amount of

ifthe

It

is

Turning

was

land

for
noting

worth

work

ests

not without

importance even to so
Boeing, its im¬
Marquardt will be far
greater. Marquardt's sales, which
were
$23 million in 1956, will
probably be more than twice that
in 1958 and then really begin to
expand in 1959. Little is known
on

I will restrict the list even

which will

smaller

have

course,

that virtually 100% of the
output of this industry goes to one
customer—the United States Gov¬
ever,

Just

ernment.

commercial

why

a

market

nonmilitary
has

not

yet

participation in the growth which
is now taking place will also be
diluted.

Ideally,

the

tween

two

some balance be¬
should be sought.

characteristic

Another

formation

missile-rocket industry which the
investor should keep in mind is

developed in this area is not clear.
The September issue of Astrothat—despite its enormous growth
♦tatitlcs
article: by of the
contains. an
past few years—it is still
Edward Pendray entitled "When ' a small
industry. American Tele¬
Will

Mr.

Rockets

Go

Commercial?".-

Pendray points out that in a:

phone's

gross

revenues

in

they

development
major non-;
ciilitai-y industries in this area.
That this has not happened might
t)e att ributable to the phenomenal
growth of the government's de¬
mand—a difficult thing for the
commercial enterpriser to eomT^ete against. When men and ma¬
within

a

expected

decade

terials become

of

available; however,

"industr y.

missile

though A. T.
missile

earnings
|

T.

1956,

aircraft

Therefore,
is

active

a

field

investment

gen c r a 1

missiles.

or

contains

only

which started out
pany

The

list

of

one

as a

company

rocket

com¬

and has done very little out¬
field during its entire

that

side

result of this work.

promising

is

contractors in the ballistic missile

in

important change in its

as

which

been

reduced

solid

missiles

of

Of the

or

laris

started

bulk

Corporation,
guidance

the

of

there

are

great

a

number

making some
specific components.
General Funk recently estimated
or

that

more

in

alone

the

ballistic

there

are

missile field

200

than

more

subcontractors.

Many
of these
companieshave /' had
a. rapid
gro wth and many of them/hive
excellent technical

existence.

That
is
the AerojetCorporation,
now
the
largest corporate unit wholly in

op¬

General

portunities must be sought among
smaller companies.

the missile field Whose stock the
investor may purchase. This com¬

CHART I

has grown in recent years at
a rate almost as startling as that
of the missile industry itself.
In

pany

1950 its sales

1957
were

were

$10 million. In

need.

hardly

have' brought large quanti¬
both sorrow and joy/ to

ties

add

that; many^ of

of

their

stockholders
in
the * past
At current levels there/are
unquestionably numerous -bar¬

year.

gains

to

be

found

companies.-

V

among

these

,

The electronics end of the mis¬
sile business has attracted

a

great

deal of attention for several

rea¬

Most

important is that it
absorbs the largest part of missile
sons.

expenditures.

Estimates for

1957

indicate that about $1 billion will
have been spent
on
electronics
out

of

of

about $2.5

missiles.

total

Secondly,

bil¬
the
enterprising manufacturers
Of aircraft electronics
already
faced with a-declining market for
their products — are anxious to
lion

a

on

more

—

ballistic

shift into missile work.

Similarly,

aircraft producers faced with the

General

Tire

owns

rocket.

feel

As

that

out

as

the

a

will

you

ICBMs

may

87% of the stock of Aerojet, there
are
now
about 50,000 shares in
the hands of other investors. This

sometime

one

in

the

tems- division and General Motors
with

next

its

AC

Sparkplug division'
Chrysler, prime eontractor Tor the Jupiter, is said to
Thiokol has seen a rapid growth
have its eye on the: electronics
in its sales—from .$13.5 million
business too.
Finally, the rapid
in 1955 to $21 million in 1956. In
growth of electronics has. pro¬
1957 Thiokol did $20 million in
leaders,

the

in

solid

nine

first

are

rockets.

fuel

at work.

vided

months.

an

attractive field for'the

enterprising electronic engineer
who has a bright idea and doesn't

Up to this point the powerplant
has consisted largely of
North
American's
Rocketdyne
division
in
the
liquid
field,

business

want

Thiokol

in

Hughes or some large company.
Clearly the woods are getting
somewhat crowded. Nevertheless

Aerojet

in

the

solid

field

and

Thiokol

and

it

advantage, at this point,
of

diversification—i.

e.,

is

will
some

both have the

number will be increased to 500,000 when the stock is split ten
for

even¬

tually be made to use solid fuels.
Aerojet
and
Thiokol
are
the

both, smaller than
Rocketdyne in liquids and larger
than Thiokol in solids.
Aerojet
about

(its year ended Nov. 30) sales
approximately $162,000,000.

While

to

tures
1957

Chart

it

to

companies
that

add

that
grow

the field

and

that

prosper.
I
while expendi¬

will

missile

on

are

Howard

with

obvious

also

continue

should

great
of lack
they do

share

electronics

estimated

at

$1

in

billion,

II

10

months.

An interest
in
Aerojet
of course, be had by pur¬
chasing General Tire stock. While
the latter can be purchased on a
more
favorable
price-earnings
basis, the investor must decide for

.

can,

himself

how

General's

much

other

he

thinks

activities

will

dilute the rapid growth of Aerojet.

/»

Anti-Missile Missiles
'

far

Thus

attention

I

on

have

concentrated

Hie ballistic missiles

because they seem to be the im¬
portant offensive weapons of the

future

.,JSI
':

•.

-

Hetit ©f ©omlwstlcft' <Jf v&rloui.




-

,

and will absorb a major
portion of missile expenditures.
One should, however, not over¬
look the defensive guided missiles
designed to stop enemy aircraft,
and
perhaps, eventually, eneihy
missiles. The most significant of
these are the Army's Nike-. Her-,
cules and the Air Force's Bomarc.

The

Aiojrcuj Numbtr.
-vc*

former

Douglas
prmojiKjl

,

competehce^I

them

currently being devel¬
produced, only the Po¬

oped

large
inter¬

General Mo¬

subcontractors

one

in

fuel.

of

major

Burroughs

the

Then

size, and the
solid fuels can be "souped up"
with new additives. Gallery, for
example, is developing a boronbased

hands

whose

same problem are; covetously eye¬
solid fuel
ing the missile electronics field.
recall, its
North
Amet lean;■* General
Dydustry is not identical with the powerplant is to be made- by namics\and Boeing are in it and
aircraft industry and much of the Aerojet. The newspapers on Dec. Lockheed has- announced its • in¬
4
reported, however, that new
work in the missile field is being
tention to go- in. Even the auto¬
done by companies whose main versions of the Thor are, being mobile :
people- have moved in.
designed to use solid fuels. Many
interests have little to do with
•Ford with its Aeronutronic Sys¬

electronics, it is not likely

to show an

More

&

Thor.

knowledge, because it points up
another interesting, aspect of the
missile industry. The missile in¬

for
example, were more
than
survey he made 10 years ago 83%cf the rocket leaders interviewed twice the total sales of the entire

«aid

on

I haye taken, some trouble to
review these contractors with in¬

the

of

the

And, finally,
Chrysler Corporation is the prime
contractor on the Jupiter.
ance

>

work in the ballistic missile field.

,

and missiles. We must note, how¬

Systems

American Telephone, Gen¬
Electric, Sperry-Rand and
along with the somewhat

eral

RCA,

program
in missiles and
probably grow in im¬
cuming
a
constant
Air
Force by mentioning only five of the portance. General Dynamics is the
fcudget of about $7 billion, mis- more promising: transmission of prime contractor on the Atlas,
and
-cile expenditures on air frames in mail
express;
rockets
to Douglas on the Thor and North
I960 will be 460% greater than in gather such information as American makes the powerplant about the Air Force's anti-missile
1956. Air Force expenditures on weather data and pollen counts; for the Atlas, the Thor and the program labeled "Wizard" other
engines (missile and aircraft) will passenger rocket aircraft traveling Jupiter. Lockheed is the prime than, that General Dynamics and
tie down by 33%, to $1 billion over 2,500 miles per hour; space contractor on the Navy's Polaris. RCA are working on its develop¬
ment.
,end expenditures on electronics flight; and drilling, boring and If we examine the other major
; (missile and aircraft) will double cutting of rock with the use of contractors in the ballistic missile
Marquardt's
story,
and
even
to $1.3 billion. In the engine cate¬ jets. The fact that the rocket and program we find that they are all more the
story of Aerojet-Gen¬
gory, the loss, of course, will be missile industry is ' presently a outside the aircraft industry as
eral, emphasize the advantage of
An
furbojets with ramjets and government affair is, therefore, we usually think of it, with the the
small, specialized but highly
•rocket motors up substantially. It not an immutable one. Moreover, exception of the Martin Company.
competent company in an ex¬
'would not be unreasonable to as- there is considerable advantage Martin is the prime contractor
panding field. Far behind Aerojet
"cUftie that current planning, post- for the eventual commercial ap¬ on the Titan, an ICBM which was
in sales, but coming up rapidly,
Sputnik, will
result
in an plication of rocketry in having the started after the Atlas and uses is the Thiokol
Corporation which
acceleration of missile growth and, early development paid for by the somewhat different principles. Of
specializes in the solid fuels. Some
*
the other contractors in the bal¬
perhaps, an increase in the even¬ government.
of the best scientific opinion now
tual level of expenditure as well.
If, then, one wishes to invest listic missile field, Aerojet-Gen¬ holds that solid fuels can be made
Defense -Department thinking last now for the space age which is eral is working on the powerplant
to
do anything liquids can and
cummer,
for
example,
was
in opening up before us it becomes for both the Titan and the Polaris.
do it better. To put it very briefly,
terms of an eventual choice be¬
Electric and
Burroughs
necessary to invest in companies General
solids never packed much of a
tween the Jupiter and the Thor— whose
space-age operations, at the are doing the guidance for the
rather
than
the
production
of present time, are immediately or Atlas and the Polaris. Arma, Bell punch compared with liquids. But
now
several
new
developments
L-oth, as has just been ordered. '
ultimately for the use of the gov¬ Telephone Laboratories and
have changed the situation.
We
ernment. However, one can dilute Remington have the guidance on
Commercial Development and Sale
are
learning to make more re¬
whatever risk this may entail by the Titan, and Ford Instruments
liable
solids
by increasing the
In any event, it seems perfectly choosing companies whose space(Sperry-Rand) on the Jupiter. AC
size of the grains, the payload
clear that a good deal of growth age operations are only a part of Sparkplug
and
Bell
Telephone
which they
need to carry has
Laboratories are doing the guid¬
is still ahead in the field of rockets their
total
activity. Of

which appeared last summer. As-

the

elsewhere.

are

tors,

a company as

pact

is rin

corporations

that while the Bomarc contract is

large

Guidance

from

powerplants to
electronic systems we find again
that
the
bulk
of
the
guidance

Bomarc.

AirHForce

acquire

the shrinking

industry;; For them ttke
in their rocket business
will be a net increment. ;
.' 1 f

growth

Farnsworth Electronics. Boe¬

and

participate; in

aircraft

quardt and

ing received

Thursday, December 26,1957

.•

not-

engines made by Mara booster by Aerojet.
Electronic
equipment
on
the
Bomarc
is by Remington
Rand
ramjet

running
neighborhood of $1 billion
per year. In this group one can
include North American, United
Aircraft, Boeing, Douglas, General
Dynamics and just a bit lower in
there are a variety of commercial sales,
Lockhead. Of this group,
uses
of rockets which are even however, only Lockhead, Douglas,
now
possible
on
the
basis of North American and General Dy¬
knowledge developed within the namics have important positions in
past 10 years. Mr. Pendray has the ballistic missile field, which
thought of 24 such uses of which now constitutes half the govern¬

In Missile-Rocket
t»y

Contractors

Smaller than A. T. & T. but still

t

-

Western

phone

is

with
-

Electric

produced

assistance
and

Laboratories.

Cnol,nt

-

KftfOMMNCC INOCX

by
-

from

RATINGS of

available energy per

Bell Tele¬

poss«b'e fuels in terms of a performance index
pound and the available energy per'gallohdlvidedby;

va/'Ous

is

the product of- the fuel's'

tha'r product for kerosene

Thiokol

makes

the .powerplant. The;
Bomarc is a Boeing job with two ~

~

3 AE -

Journal,

.

Augu a t,19$?:
-

-

*»T

'

Volume 186.

it. is. also

Number > 5702

estimated. that

The Commercial and Financial Chronicle

another

.

'• v;

.

/

Government

'.

.

•

j vSome

like

of

-

the

-

receive

7

missile

and

program

Among

the

•

panies I shall have to leave
AO® choose

you

own

among

331"

w7;.7Jl,449'7'S

346

7

" •

-

-

87

'■562(425)

______

.

Research &

Development

168
*

______

i

;

r ;

•

;

name of

•

"pulsed Doppler." - ! can
little about this beyond

76

-

7:

•

91

1,213(1,793)

in parentheses

expenditures.

SOURCE:

represent

"Jet

i.

195(238)

teft: you
the fact that it is

860(1,948)

obHgational

new

table

n

■

authority

as

r

\
•b

Specialties V/ •••/

• v

;

electronics
back yard.

.

company

.

in, my own
the Applied

to

..

This

-1

-

1

tern years

7$20#00
This

the

million

$3.5

the
the

in

company

BOMARC,

REDSTONE:

Design,

first

nine

The defense cutback

It is not intended to be

rate

of

next

growth

a

as

r.\ >

7

a

LACROSSE,

par-

,

'■ • V-

.

V

a

.

and

and

telemetering

prototype

fabrication

of

safety

'

X-17:

TITAN:

talos:

Subcontract

^

circumstances

where

Prime

-

FALCON:

Prime

rca

for

TITAN:

Contract

McDonnell

contractor

launchers

irhm: r ■& D

•-

Electric

in

ration; which
■

shares.
"

ASCOP

Bond

'

.

is

Share

&

holds-

'

POLARIS:

Contract

BELL
RASCAL:

Ramjet

engines

TITAN:

nike:

'

Accessory

drives

power
•

'

-

;

"j:,'

7

-

Ramo-Wooldridge

HAWK:

.

ship motion-simulator

46,000

half

of

has

stock

high ' technical

very

one

like

REGULU3

I,

for

the

*.*

need

Prime

REDSTONE:

contractor

''

"

Prime

II:

■

'

• *

Guidance and control systems,

.

.

radar

system-—-Runs missile test range
Pan-American
"
'

at

,

'

Patrick AFB

"...

;

ramo-wooldridge corporation

:

ATLAS, TITAN, THOR: Systems engineering' arid-"techilfcai clirectiori for Air Fore©

;•

ballistic

missilfl program

Motor parts

;

-*■

■* <

raytheon .manufacturing

?'

-■

company

HAWK, SPARROW III: Prime contractor

republic aviation corporation
■•••'

ATLAS:

Nose

subcontract from General Electric

cone

•'

'

"

investor

contractor

Research

JUPITER:

I

same

time

it

said

to

and

development

SURVEILLANCE DRONE:

contract

those

bomber,

to

be

7

ICBM:

Research

and

DRONES:

is necessary

been

THOR:

Guidance

tbe> WS

on

110,

Research

on

development

on

testing

inertial

guidance

SPARROW

systems

CORBU3:

systems

Continued

on

page




DOUGLAS AIRCRAFT COMPANY

Development and

production

Development contract

:

.

r

'

THOR:

Development

NIKE-AJAX:

contract

Airframe

FALCON:

NIKE-HERCULES,

LACROSSE,

X-17,

MATADOR B:

Solid propellant motors "

HAWK: Contract for R&D work on solid propellant

Booster

unit

HONEST JOHN, DING-DONG: Prime contractor

united aircraft corporation
SNARK;

EASTMAN KODAK

J-57

engine

Prime contractor

DOVE:

western electric company
NIKE-HERCULES:

ELGIN NATIONAL WATCII COMPANY
SIDEWINDER, SPARROW:

Prime contractor

NIKE: Safety and arming devices

riming mechanisms

EMERSON

Astronautics, September,

FAIRCIIILD ENGINE «Sr AIRPLANE CORP.
PETREL:
tor

BLUE

GOOSE t:

Also

Prime

Development contract

launching system

reported

to

be

prime

table

ih

Higrh Performance Propellants

contractor

Specific Thrust

D contract for drones

..

Volume Specific

lb./Ib./sec.

Liquid fluorine Liquid hydrogen

400 <50 atmos.)

43

Liquid fluorine Liquid hydrogen

370

Liquid

&

RUBBER COMPANY

Prime contractor

FOOD MACHINERY & CHEMICAL CORP.

385

THOR:

de¬

Company also

Development

of ground

handling equipment

produces hydrogen

perixxc'C

missile

•

Liquid hydrogen

-

FRKUHAUF TRAILER COMPANY
MATADOR? Lanrrh.'re

eqiuiircrit'

"

3,600

33

-

3,100

96
-

2,300

2,300

-

Liquid oxygen

HAWK: Transporter

-and 'UDMH lor

T'KL

Fuel

]

ozone

Combustion

Tempera tux®

Thrust

Oxidant

FIRESTONE TIKE

^

1957.

contractor

Development;

has Army tt &

experimental

Contract for

POLARfS:

•

SOURCE:

GOOSE

NIKE-ZEUS:

.

westin g hou se

7

ELECTRIC

LITTiE JOHN: Research, and development work

.

the

24

I:

corporation

thiokol chemical corporation

de¬

has: beem in

corporation

temco aircraft

re-entry problem

program

Liquid hydrogen

3G0

90

Liquid oxygen

Boron

330

455

3,000

330.

350

4,450

310

340

liquid fluorine Hydrazine
-

velopment of which

XQ-4: Air Force contract

contract

sperry rand

NIKE-HERCULES:.Missile, airframe and launching components

jet' engines
used

Anny

airframe components

TITAN.

Army contract

radioplane company

shall discuss

have

primarily for

arid

Rocket motors

CORPORAL:

rheem »ianufacturing c03ipany

Engineering and production contract

TARTAR:

Prime contractor

'

RESEARCH LABORATORIES

IRBM:

to

-;»

.

ryan aeronautical company

,

FIREBEE:

contractor

'

i

CORPORAL:

new

i

COMPANY

Development contract for airframe

Prisae

COOK

point out at-the outset that the
high energy fuels, developed by
Gallery. Chemical and Olin Math-

as

^

TARGET

TERRIER:

to

such

,

'

CONVAIR DIVISION OF GENERAL DYNAMICS
ATLAS:

unrelated to missiles antt'rockets.

are

SNARK: Prime contractor '

under subcontract from

;

.

1

CHRYSLER CORPORATION

.

subject of missiles and
rockets, for I wish to turn to the
of' high-energy
fuels
subject
which, strangely enough, is hot

ieson

contractor

SIDEWINDER:

REGULUS
•

the

signed

Launching system

corporation of america

Ground guidance

•

CHANCE VOUGIIT AIRCRAFT, INC.

Ramp

This is about all

At the

contract

IRBM: Data processing system for Air Force ballistic missile program

ICBM,

Martin

Patrick AFB missile center for Air Force

radio

COMPANY

BRASS

equipment from

ground

contract

BURROUGHS CORPORATION

growth

a

hesitate.

on-

Prime

Rocket motor tubes

ZUNI:

can

with

no

for

development contract

and

aviation, inc.

equipment under subcontract

production

AIRPLANE

Research

Liquid propellant engines

TERRIER:

-

participate-in a
by buying
record and
management like Thompson's, I

see

development
Radio

by Thompson Products.

competence and its revenues have
been
growing at a rapid- rate.

a.

Prime

BOMARC:

Corpora¬

whose

af ballistic missiles, super¬
vising the development of the
Thor, Atlas and Titan. The com-

company

ATLAS:

BRIDGEPORT

field

stock

and

QUAIL:

piulco corporation

the

through Thompson; Prod¬
Ramo-Wooldridge .has the

When

IX,

contractor

Prime

Principal subcontractor

Runs

:

is

pany

Research

REGULU3

BOEING

job of supervising and coordinat¬
ing the Air Force program in the
•

,

pan-american world airways, inc.

TALOS:

only avenue of participation

ucts.

projects

/

;...

tion—about

here

missile

northrop aircraft, inc.

'

readily into' the basic cate¬
gories of the missile program is

The

separate

15

; ' northern ordnance, inc.

.

BENDIX AVIATION

Another company which doesn't

is owned

:

."i

;

design, testing and fabrication

american

ATLAS:

TITAN: Nose cOne development

for

for

Subcontract

AIRCRAFT COMPANY

TALOS:

fit

the

.

Ramjet engines

MATADOR:

SIDEWINDER:

REGULU8 I,

Corpo¬

over

I •

,

4

aircraft corporation

1

north

auxiliary power units

on

Supplies components

needs-

one can-

contractor—Engaged in

LACROSSE,

BOMARC: Liquid propellant booster

BALDWIN-LIMA-HAMILTON CORP.

not; approach to get them in a*
conventional
way; - The - largest*

.Stockholder

r

...

major;contractor by! government

as

,.' BOMARC:

AVCO MANUFACTURING CORP.

Tele-

one

measurements but where

••

..

.

TITAN, THOR: Powerplant research & develop.

Development of inertial guidance system

from

icbm,

metering has obvious commercial
applications, being useful in any

■

• *J •

marquardt aircraft company

7

AMERICAN MACHINE & FOUNDRY CO.

equip¬

non-recoverable.

• '.v

-

,

lockheed aircraft corporation
X-7,

control system

AMERICAN ROSCfl ARMA

months.

telemetering
equipment.
Inci¬
dentally, I might add that; 75%
is

•„

NIKE: Subcontract from Douglas

-

.

TALOS:

Thor, the Nike-Zeus and the
Vanguard programs by providing

airborne

.

martin company

DART:

year.

ment

-,

;v:SOLARISf Described

///

the

of

: :

,.

interstate electronic corporation

S4.3

The
company
sells
-.only on a fixed price basis and
its profit margin has been run¬
ning around 6%- alter< -taxes:—
6.1% last year. It participates in

4

j

..;

BOMARC, METEOR, RASCAL, SPARROW. Company reports ;!
/-only that it is working on these systems
- ■

«

y ••

•

•

,

hughes- aircraft

TALOS,

"M,

com¬

AEROPHYSICS DEVELOPMENT CORP.

resumed

be

r'v \

■

k; FALCONS: Prime contractor

r,Ar

POLARIS,

guidance

arming devices

POLARIS: Major contractor

if the rapid

as

-

international telephone & telegraph corp.

:

last Summer

will

of

development,
and

Solid oropellant engine

BULLPUP:

slowed sales in the third quarter.
With the steam turhed on again-,

jbowever, it looks

.

--

AEROJET-GENERAL CORP.

1956.

did

-A
.

.

'

TERJltER: Boosters

^".

'

Development

past

in

:

N

•

ACF INDUSTRIES, INC.
SIDEWINDER:

was

sales have grown from

to

year

million

In

,1

kellett aircraft corporation

metering field—it did so in> 1946,
-taking over a telemetering sys¬
tem pioneered by Princeton Uni¬
versity, and taking over some of
too.

.

iiicks company

^

••

-

■'.■V "

,

V

'

personnel

"i

,

-

grand central rocket company

\

Company, "Project, and Remarks

-

the

v-

;
hercules powder company
:'7" ;VV"7v;.7HONEST JOEIN: Solid propellant motor

:*i

:

.

plete and comprehensive listing. Much of the work is still classi¬
fied, and the relationship of many companies to the program,
while 4 vital,
is nevertheless too indirect ,to, be; noted here,,

.,

of the first to enter the* fele-i

one

Boosters-

I

That vis-

company

NIKE:

k

It is offered
major contractors to

some

ticular projects and to each other.

Science: Corporation

of Princeton.

>*

^

CORPORAL: Guidance 'system

-

I do know something about an

interesting

V-

•i

;

industry.

•' v.: ».:,

•'

for support facilities for

contract

DART: Solid propellant motor

opposed

Who's Making >Miat for U. Si Missile Program

guide to show the relationship of

missile,^obviously* art ' irrt-^
port a nt: problem. £ •. : -*; «

'**<.* i

641(700)*;

/■''[:-yri'

•

ICBM

'•

''I'.,;:;.'.'.

^■1"

-andi seems to have application to
the problem of guiding an* anti-

-

-

•

This table gives a picture of the extensive and varied nature of
the large and still-growing missile

radar system

a

engines—Also lias

k^sfcic misfiile program".-; .7

v-;

73

:

"Propulsion,".March,

•

,

systema

goodyear aircraft corporation

v.;

v
•...

.

Ttirbojet

:

a

•

Development

Procurement

Sanders Associates.t
The last, as you know,-has a Sys¬
tem - known
by the ' intriguing V

r-»-N

•

,

•

GILFILLAN BROTHERS

sociates -and

.

*.

/

Research &

'"Flglires

y

:
'

guidance

and

~ 7 /1

^77 7Ls77~

V''■ V~

Air Force:
-

control

23

.

95"

221(352)

fire

of

ATXAS, TK"PR: Noss cdrie ^devfllopifiept > .;3TLAS :TGMdance system

fr;t

333(?)

146 -.v

264(428)

■

development!

,h

112

^ 425(?)

\v

_

.7

109

*

contractor;

MATADOR; 'SNARE:

T,I69(?)
• ■

7

ALajor

■i.-;^Sv7/'v^

1 280

:

;

v.v —■.

Development

Procurement

such
asi- Litton /Industries,- Beckman «•
Instruments, Ampex, Consolidated Electrodynamics,-;• Cook Electric,
Ettelr McCullough, Perkin-Elmer, Varian Associates, Electronic Asyour

*

-

;

Navy:

com-.,

.

•

Procurement

should

so

smaller

Development

Research &
'

dEBM*.

.;

1,852 7

' C-';*

Procurement*V-——— 2,039(2,646)'? 1,506(2,300)

Army:

aMe amount of business from the
•

POLARIS:

.J '
•■7

2,370/

_______

Research &

notice-

a:

;

,

,

ELECTRIC. COMPANY

BIDEWDTDER; Guidance and control systems

.

;

.larger companies

should

Expenditures in Millions of Dollars

Total

.General 7 Electric/* and:- Bur¬

roughs

rk 7:77

>

_

GENERAL

...

;vMore Money for Missiles. I'

/

:

...

on-

communications,
radar - ; and
:test equipment, The latter eate- gory,
however,"/-is not generally
included under missiles, 7
7 > v*

TABLE I

i

•<,

million will hare been spent
-

(2831)

.Liquid

oxygen

SOURCE:

Diborane

■

Humphries, John.

Rockets' and" Guided Klssiks Macmillan Co..

3,600

.Oc-6

The Commercial and Financial Chronicle

(2832)

24

Boeing

of

hands

the

North

and

in High

Firms

Fuels

Energy

high energy
fuels, however, the most advanced
variety is essentially a combina¬
tion of hydrogen and boron. The
old hydro-carbons — or hydrogen
and carbon compounds—have not
been able to give the power that
is
required.
Aerodynamic
en¬
back

Coming

to

gineering has gone about as far
as it could to increase speed
and

through
aircraft
design.
further push has to come
from the fuel.
The possible al¬
ternatives to hydro-carbon fuels

propellants in the foreseeable
future will be in the boron-hy¬
drogen
combinations where all
desirable characteristics of a fuel

long time.

have been known for a

energy

con¬

tent per

unit weight and per unit

volume,

easy

handling

low

and

cost."

is

billion

fer

Harvey of the Shell Oil Company

"SAE
1957.
The

which

the

appeared
in
Journal" for August,

with other companies).
Waiting anxiously in the back¬
ground to enter this field are a
combination of American Potash,

Food

Machinery

Distillers

small.

on

report

a

to

Committee for the

fuels on the assumption that

for
both

the

volume

and

of

the

business

the

As Mr. Harvey-

shown in Chart II.

But it is too scarce and too toxic.

One of the requirements of a new

and

If

will examine Chart II
will find that the most at¬
you

you

tractive element to combine with

beryllium.

be

would

hydrogen

risk

quantities may be used eventu¬
ally. Hydrogen alone is, of course,
best in terms of heat content (see
Chart I)

and there are unlimited
supplies of that. However, despite

recent announcements about con¬

in

parahydrogen

taining

Dewar

flasks in a. liquid state, there are

still three main drawbacks to the
of

First, its den¬

hydrogen.

sity as a liquid is only 0.14 which,
from a practical point of view
that

means

it

would

occupy

an

"Fortune," in a
recent article on fuels, estimates
that one pound of liquid hydro¬
gen would take up ten times as
much space as one pound of gaso¬
enormous

space.

result

The

line.

is

unit volume

per

low

a

as

thrust

be

can

seen

Table III.

in

Secondly, a signifi¬
cant part of the high heat content
of hydrogen is lost in the shift
from ortho to para form. Finally,
the equipment needed to keep the
hydrogen liquid is bound to be
heavy and cumbersome — hydro¬
gen's boiling point is minus 423
degrees, F.
Lithium is another
alternative
in

boron

nearly

many

good

as

but

ways

as

not

as

plentiful
and
more
expensive.
Other light elements such as alu¬
minum

and

magnesium

are

possibilities but again, not
isfactory as boron.
There

why
ion

is

economist

an

ment

counsellor

technical

the

reason

invest¬

and

the

on

highly

I

should

following

like

more

to

refer

competent

opinions:
(1)

building
$36 million plants which will be
completed by 1959. These are not
pilot plants. Pilot plants are in
operation now.
However,
they
are small plants in terms of even¬
tual
requirements which
eoulcl
develop. "Fortune" estimates that
when the new plants are com¬
pleted in 1959 total output of
of

process

boron fuels will be such that four

days production would be needed
to fill the fuel tanks of

B-52.

one

these plants will be
test
quantities
only.

Obviously,
producing

Considering that the fuel could
provide our bombers with more
than half
again as much com¬
bustion energy as JP4 we might
want

to

the

still

have

for

bomber

increase

in

faster.

somewhat

move

shall

We

to

rely

while

a

that

and

will

energy

on

enable

of

fuels, NACA announced

new

last month that it had

successfully
flown them in both turbojet and
ramjet engines.
Flying the new
fuels
in
a
turbojet
is a real
achievement
been

since

the

causing trouble

had

fuels

coating

by

But while

boron fuels have

new

been

designed

there

is

every

boron

answer

for

jet

will

engines,

to

reason

be

suppose

initial

the

to the rocket

problem too.

the

desirable

character¬

istics of liquid rocket propellants.

According to Mr. Carpenter, "the
graph on fuel-oxygen," a copy of

this

One

use.

dissemination

probably will be a compound of
hydrogen with one or more of
the light metals."
Then he goes

endless

that of the possibilities

say

among
the light metals, "only
compounds of hydrogen and boron
meet

the

tests

acteristics,
ability."
(2)

In

of

desirable

properties

and

char¬

avail¬

June

of

1957

"Jet

Pro¬

ican

Rocket

review

titled

of

Society, published

the

fuel

"Gasoline

to

situation'

matter
fuels
a

Kerosene




to

what
since

of

course,

The

rumor.
seems

will

while

reliable

absence

of

be

still

to

be

infor¬

such

has

led

fact

of

in¬

to

oped
most

—

and

until

that

a

better method

which

produces
There

that

is

one

sodium

both

borohy-

risks

two

are

methods

or

a

,

here.

change

these

of

will

chemi¬

cals will be eliminaled. The other
is that

Olin

Callery will make

or

the intermediate
latter

is

not

themselves.

likely

The

to happen

to

Metal

Hydrides since they are
working on a Navy contract in a
Navy-built plant. If, on the other

borohydride
is
eliminated in the processing,
Metal Hydrides feels it can sell to
industry cheaply enough to dis¬
pose of the output of this plant on
hand,

sodium

basis.

commercial

I

might add
that the cost of sodium borohy¬
dride is undergoing an enormous
a

reduction

through quantity pro¬
duction.
Metal
Hydrides should
earn about $2 per share next year
is

and

selling at SI5.

Another

is

Salem-Brosius.

a

small

order

Salem

to

had

has

C)lin

provide

trichloride but this is

significant aspect of that
What is of much greater

company.

is

interest

Salem's

the

Metal

Chlorides

in which Diamond
recently took
half of

company

interest.

Metal

Chlorides

developed a high temperature
process
for chlorinating ores
which can be adapted to produc¬
ing boron trichloride at a cost ap¬
proaching

a

small fraction of the

cost

current

The

process.

carbide

the

under

chlorination

same

be

applied to other ores in¬
cluding zirconium, chrome, rutile,
and lithium.

operation
to

The Metal Chlorides

could

$alem"s

earnings

derived

now

add .significantly

from

which

are
construc¬

the

tion of steel furnaces and materi¬
als

handling
should

1957

hood

of

-

equipment
in

be

$2.50

the

per

for

and

neighbor¬
This

share.

stock, listed not too
American

long ago on
Stock
Exchange,

and about 50%

of which is owned

the

by management, is-now trading at

$17

share.

per

us

for

quite

Borax

more

some

boranes

promising of the
chemicals. As

the

are

new
one

high

scien¬

Investing in the boron field is
complicated matter because of

the number of companies and

the

The

the

10

cide with

the

in

the production of the raw

son

to

Here

be

there

concerned

material

is little
about

rea¬
com¬

of
production. At
the present time the borax indus¬

petition
new

or

the

methods

development

of

try produces in the neighborhood
of

one

mates

will

million tons per year.
of

be

the

annual

required

output

when

the

Esti¬
that
fuels

in

and

the

one

polymers
hope

solid

considerable

a

based

on

hold

out

high

which

a

de¬

new

boron

which

products

for

withstand

canv

than

Exclusive of its

over

hundred

one

which

borax

absorb

industrial

the1'output

the

continue to

grow. Backstopped
promised growth in the
polymers, it would not take too
many years for borax output —

without

even

reach

to

justify

the

present

prices

of

that there

in

these

is

stocks

,

to

Hooker is al¬

with
on

the

.

along

company

new

Foote's developmental

work

the lithium perchlorate.

There

much

is

more

than

one

at present
could say about the missile and
high in terms rocket field but space is
running
earnings.
/
out and I have probably written

current
But

into

go

appear

relatively small risk

prices which
of

perchlorates.

Electrochemical

ready a producer of ammonium
perchlorate and this business will

borax

stocks. Therefore it would

together

company

Hooker

make

could

which

a

with

business—

fuel

level

a

is widely

perchlorate
advantages.

Foote formed

the

by

some

we
can
hardly afford to
heglect the Foote Mineral Com¬
pany
which was one of the
pioneers of lithium. Recently

industry today and which promise
to

is

Having gotten into the field of

...

uses

of

oxidant

lithium

has

now

the

At the present time

used, but lithium perchlorate may
have

>

in fuels and

use

polymers,

>

fuels

rocket

right in.

ammonium

presently

known products can take.

.very

built

temperatures several hundred de¬

higher

b

perchlorate promises td be
satisfactory oxidant in solid
fuels. As you know, rockets carry
their own oxygen supply and in

probably coin¬

mand

even

seem

consider,

the

too,

supply

•

too much

already. I beg your for¬
have not mentioned
companies or
areas
which the

situation in the borax field. There.,
giveness if I

only three companies in this
country that produce any borax.
There are only four companies in
the

free

world

significant
United

that

have the

we

reader considers

,,.

The

produce any
of " it. In the

amount

States

Borax and

Chemical

American

Potash

U.

really important.

ramifications

field

of

the

and

enormous

are

missite.

take

into technical areas where

S.

economist

Corporation,

o

b t

i

a

one

poor

only struggle to
superficial under¬

can
some

n

a

Stauffer

and

standing. I have tried, therefore,
to stick to things I know some¬
Outside the thing about, and these, of course,
U. S. there is only Borax Hold- / are the ones which have looked
ings, Ltd., which used/to. owb aJl/ most exciting as I have worked in
of U. S. Borax and now:pWns 75
this area oyer the last few years.
of it. Between them/ Borax"Hold-' If
you go away with some general
ings and U. S. Borax own 9,0%V of 1 idea of what the industry looks

producing roughly. '65%,/25% and
10%

of

the

known

output.

our

,

world

//reserves

borax. The lowest cost
of borax

mine

at

in

Boron

deposit

which

is

pit

mined

which

few

the

Mojave

operafioh

along, with

ago

These

plant.

-

can

new

a

In

that

a

//

•:

One

,of $20

and
of

means

space age, my

been

accom¬

v/ / / ';£*/

>_ :

I point out
the space age
be done with any degree of
concluding

may

investing for

risk which

improve¬

made at a cost

were

it' leads / one,,

will: have

purpose

high! plished.

a

sodium/, borate
in a
nevy .ppeb

into

went

weeks

refining
ments

of

where.

where to find your own

jBorax'i' participating in the

desert of California/This is

grade

of like,

production

from U. S.

comes

wishes to assume.

one

take

can

a

flyer,in the little

com¬

with nothing more than
radar device said to be ca¬

capacity by 30%.
They
designed, however, to make
possible
further
substantial
in¬

pable of tracking Mr. Khrushchev
himself. Or one can invest in estab¬

million

and

increase

the

company
new

a

pany's
were

in

creases

capacity

at.

American
both

get

companies

with

strong

a

outside

business

stable

missile-rocket industry but a
Stauffer

and

borax

from

of building up

chance

the

business

The gov¬

brines of Searles Lake.
ernment has been

and

.

Potash

their

lished

/minimum

'

between

doing consider¬

the

good

substantial

in tnat field as well.

there

are

all

In
of

sorts

With careful analysis,
study, and unending
a little bit of
companies can, by selective drill-, luck—some of us may find the
ing, pump up brines with higher General Motors or the Jersey of
able work

additional

in this

borax contents if

gradations.

develop

constant

Moreover, the

watchfulness—plus

they wish to in¬
Both Ameri¬

the space age.

borax output.

crease
can

to

area

reserves.

Potash and Stauffer have been

Rejoins Paine, Webber

•

active in the boron chemical

(Special to The Financial Chronicle)

field than U. S. Borax, though the
latter is
beginning to be more

active

with

research

new

a

boratory at Anaheim.
noted, American

ing

fuels

A.

lab-

As already

is work¬

Potash

and

ANGELES, Calif. —James
has rejoined the staff
of
Paine,
Webber,
Jackson
&
Curtis,
626
South
Street.
Mr.
Terrell
has
recently been with
First California Company.
LOS

day
major factor in this field. The
potential exists in Stauffer
though they are probably not so
on

may

some

be a

Terrell

same

far

along.

Stauffer also

owns

With Wm. R. Staats

.

the

(Special to.The financial

huge Anniversary mine in Nevada,
a

calcium

along

borate

with

similar

E.

640
He was for¬
merly with J. Logan & Co.
v

production about 1930.

Joins Walston Co.,v

Lithium's Prospects
American

string

to

Potash

its
is

It

of

one

of

(special to The financial

j

another

the

missile

has

in

bow

the

■

III, has
Walston

Birr,
with

'lithium.
The
Inc., 265 Montgomery
has
already Birr was previously

material

had

phenomenal a growth as
promises to have in the

as

borax

no

spite of

sign

in

abatement

of

weird temporary situa¬

a

tion which looks like
and

really isn't

the

economic

pacity

are

into that

long

to

so

effects

concerned.

now

of

overca¬

I won't go

because it takes too

explain.

generally

overcapacity
far as any of

thought

But

to

is
im¬

lithium
be

of

— H.
become
& Co.,

Mr.

Street.
with

California Company, Inc.

future, but the growth in lithium
shows

"

Chronicle)

FRANCISCO; Calif.

/"SAN

Theodore

major associated

latter

with

Spring Street.

South

deposit in the Mojave

into

came

Hambly is mow affiliated
R... Staats .*& - Co.,

William

Valley, has not, been eco¬
nomical
to
operate since U. S.
Borax's

Chronicle)

ANGELES, Calif.—Robert

LOS

which,
deposits
in

deposit

Death

producers

Production

boron fuel picture, however, are in
—borax.

and will

years

field.

investments

safest

warhead

thing, lithium
is. used in the production .of
o t o n > fuels.-'- For
another,

metal

as yet—it will cbme 6n top/of
doubling of output over the past

more

has

the

propulsion. For

of this /.has been

none

cost.

which prob¬
ably should be classified
with
these producers of intermediates

the

sile—in

new

lithium

company

with boron

portance at both ends of the mis¬

to

run

Whatever

from the

are

bit are
the companies that produce inter¬
mediate chemicals for making the
fuel. The chief among these are
Stauffer, which produces boron
trichloride, and Metal Hydrides

the

tist put it, all we need do is look
at the periodic table.

a

the present
Olin are both

that chemical

with
—

of

the

advanced form of propellant such
as
atomic energy can be devel¬

a

en¬

The

formation,

energy

pulsion," the journal of the Amer¬

guess

happening in this field
security restrictions prevent
mation.

to

only

is

which is found in Chart I, "shows
that the ultimate chemical fuel

on

can

At

fuel.

Moving down the line

can

the blades.

a

Intermediate Chemicals

four;
the

also

is

the other.

Alkali

Engineering Chemistry" for April, High heat content and low molec¬
1957, Mr. R. A. Carpenter, of the ular weight of the exhaust gases
Midwest Research Institute,
de¬ make boron superbly suited to
scribes

than

the bomber to do any of the fol¬
lowing: fly at 60,000 feet instead
of 40.000; go 5,000 miles instead of
3,500;
fly six hours instead of
or fly at
Mach 3 instead
2.5.
As to the usefulness of

become

There

Callery and

not

that

Writing in "Industrial and

the

in

now

will

and

that each has

and

rate, the boron fuel was
chosen and Olin and Callery are

subject of rocket fuels.

Therefore
to

particular

sat¬

should accept the opin¬

you

of

no

as

also

Developing Boron Fuel

that

boron

time,

One

At any

contracts are
This end of

competitor will
develop a better fuel or a better
and cheaper method of producing

aride.

that boron is.

adequate supply since vast

fuel is

use

out,

points

is

competitive.

more

is

result

The

/important.

"It is immediately
apparent that, on this basis of
evaluation, beryllium and boron
are
outstanding performers."
He then goes on to point out that
beryllium is not suitable as a fuel

was

is

negotiation.

for

up

fuel

weight

index

performance

own

are

it

and,

National
rumored,

d

a n

the next time

pear

Navy and the Air Force both de¬
cided
to let contracts
(to Olin
in 1956, a choice had

(to be shared,

years

of course,

sure

clearly been made. As a matter
of fact, the field of possible choice

10

use,

t.

a

a

boron

in

t h

come

Thursday, December 26,1957

.

felt

billion

his

and Callery)

some

while, though

the

based

is

Executive

the

for

times

growth does

grees

April 1958, National Aeronautic
meeting.
Mr. Harvey computes

on

its

affect

to

sales

of

stated

article

going

likely

several

the company
publicly that the fuel
business could reach a level of $1

has

in this field
in this country
for at least ten years, under gov¬
ernment sponsorship.
When the
The research program

has been

Oiin's fuel busi¬

well.

as

not

ness

half
little

Callery

Aerojet. Others will doubtless ap¬

(3) Finally, I should like to re¬
to
an
article by Mr. Hugh

range

Any

high

found:

be

of

75%

business

Safety has the
and other

Mine

time.

long
other

in

can

foothold, perhaps, but unlikely
affect
Gulfs earnings for a

to

'Zip' — With Energy Calling the
Signals." "Zip" is the name the
Navy gave to its boron fuel pro¬
gram. The article concludes with
the following statement: "But it
seems
evident that the big push

general

fuels—and

a

In Missile-Rocket Indusby
American.

come

producing the new jet fuels. Gulf
owns
25,% of Callery, useful for

Opportunities

Investment

into

rapidly changing technology. Olin
and Mine Safety Appliance and
Gulf Oil all have an interest in

Continued from page 23

.

.

."/

First
/*

With Holton, Hull
'

,/< special to The Financial

G. Ryan
become

4_

and Alan D. Selditcn have
affiliated
with
Holton,

Hull & Co., 210
members

Stock

Chronicle)

ANGELES, Calif.—Leland

LOS

of

West Seventh St.,
Pacific
Coast
Both were pre-

the

Exchange.

Volume

186

Number 5702

.

.

The Commercial and Financial Chronicle

.

(2833)

Continued from first page

pectations for financing any

v

new

facilities, at least in the days im¬
mediately ahead.
Until
market
conditions

Broadening the Market for
State and Municipal Binds
of

last

is

likely

year's

sion of

ply

to

While

total.

this

impresdiminishing future sup-

a

of

it

tax-exempts,

should

be remembered that many
not

issues,
voters' approvals,
contemplation and will

requiring

are

unoer

the

swell

voted

totals.

substantial

very

bond

revenue

under

In

fact,

public

deal

negotiation

is

a

power

presently
may
be

and

marketed in the immediate future.

The amount is reputed

to

run

as

development

$250,000,000. Besides such outsize
financings, there are the hundreds
of

smaller

issues

for

schools

and

discount

after

occurred

rate

the

lowered

V2

of
all

sections

was

of

the

market

were

glutted with slow moving inventories, price cuttings, and a gen-:

Foreseeable Future

likelihood

in

the

is

seldom witnessed in the municipal

foreseeable

lowering

the

ot

rediscount

rate

'

other

were

demand

local

for

this

enormous

capital funds

governments

have

improved

the

index

immediately
an
upward
trend developed
extending into
April when that index reached a
3.06% level. Within a month a

the

!ff0

levei

ted

restored

immediate

future.

of

limitations
bonded

tne

on

indebtedness.

However, selling revenue bonds
may have been the only way a
political subdivision could procure
a

needed facility. After

reviewing

the record for the past 10
years, it
is obvious that they have become

with

ance

current

economic

de¬

Foliowing the

to

war years, a new

type Gf municjpai bond

held

that

k

nn

nnpntiv

til'1

f

quently

that

glamour bond of municipals, the

u

market

bound

up-

toll road bond? In 1954

wf«?thfai1n,i<aC°nc. U-fn-M
iV index, as of Nov. 22, at

all-time

an

r.ecord issuance of almost $7 biljion
public
securities
was

99+

/o'

Total

program

for

is

cost

the

saw-tooth

type of market, it was
accomplished without repermore

than

one

in

sale,

them
to

rate

them

later

were

issuers

occa-

withdrew

at

on.

plagued

a

consecutive

year
they
significant factor

a

total

volume

of

on

them

has

also

new

been

stumbling block obstructing
undertakings.
Furthermore,

favorable

more

the

market

rejected all bids, hoping

or

sell

the

up

municipal financings, as most of
the larger projects have
already
been
negotiated. The depressed

sion, after bonds had been offered
for

and turnpike issues
27% of that figure. For

third

Underwriters, too, unfavorable record
with problems of those ventures has

on

some

dimmed

for

additional

lions

of

dollars.

During

the

the

year,

for

Federal

earlier

aid

to

education

—

Due

AA
A
BAA
*As

——

1972

2.55%

2.75%

2.77

3.07
3.18

1957
1957

-November,
of November 25,

VMM

1957______
1957

1977

shortage of schools. The
strong opposition to Federal en¬
croachments

stressed

that

First Week in:

1957

J956

J953

2.40%

2.40

3.04*

3.43

3.08

2.45

2.33

2.64

~

3.27
1957.

•

policy changed June, 1953, to

ease

market.

money

of Municipals

1957

1955

$132,364

$250,311

250,567
163,807

264,845
273,662

October

156,261

140,076

170,361

267,145

of

November 29,

308,742

omitted)

1957

January
April

excess

It

would

of

modern

be

$405,227

$203,052

467.522

jet planes, 375-horsepower
together with the host
demands
for
a
higher
standard of living exerts pressure
on
our
governments to provide

193,434

1955

$326,882

the

provision for refunding was pro¬
vided. It is reported that applica¬
tion

for

registering

such

trust

a

has

already been filed with the
Securities and Exchange Commis¬
sion.

will
of

H.R.

8702

tive

from

the

interest

tax-free

it

as

bank

than

Less

through

month

a

was

formation

The

tions

of

the

for

aiding

State

ments in their

This

ago

the

an

m&de

an¬

of

National

the

Com¬

specific purpose of
and local govern¬
financings.

committee's

aim

primary

is to open a wide investment area
for

tax-exempt

their

portfolios.
accomplished

be

the

Federal

Before this can
revision of

some

tax

conveniences

and services to accommodate those

place for the funds.

creasing

volume

of

The

those

creates the problem of

283,545

the

219,487

440,640

investment

155,142

sources

November

469.240

172,066

411,957

local bond issues may triple

market

for

issues

that

paper.

estimate

in¬

broadening

230,575

category of
Authoritative

that

state

members

bank

of

the

and
Fed¬

for banks.

>

Association

of America

also

pro¬

posed consideration of this subject
at the recent annual convention of

the

is

Association.
from

the

augurating

Their

approach

standpoint

of in¬
educational adver¬

an

Commercial Bank Holdings
The

total
non-Federal
public
outstanding at the beginning
of this year aggregated $49,161,000,000. Of that total, the insured
debt

commercial

statutes

will

be

and

with¬

owned

the

commercial

subdivisions
banks

in

those

of

the

the

100

United

largest

States

re¬

decline of only 1.5% in
bonds. A nominal decrease,

flected

a

indeed,

when considered in the
light of loan demands, tight money
conditions, and other factors that
wdre
prevalent
in
the
period
through

Consequently, the com¬
mittee is urging support of Repre¬

Sept. 30.

Actually, those

increased

banks

their

necessary.

the

amount

,of

holdings of those securities

in the third quarter of this year
by almost 4%. It is also note¬
enacted,
worthy that 99 out of the 100
private
and
public
investment
largest banks held municipal bonds
companies would be able to dis¬ in their

Curtis'

sentative

tribute

on

bill.

If

securities.
the

this

Should

in

basis

the

the

tax-exempt
take place

visualizes

committee

increase

investment

tax-free

a

income received from

a

broad

demand

and

marketability of municipal bonds.
Naturally, the
outcome
is un¬
predictable, as the passage of the
legislation is subject to Congres¬
sional action. However, there is

In

the

May,

Treasury

Depart¬

ratio

of

total

assets

those

from

ran

low

as

held

to

individual

of

The

accounts.

bonds

V2

as

the

banks

of 1%

to

a

maximum of approximately 13.5%.
Dollar wise, the smallest holding
was
$2.9 million and the largest
approached the $685 million mark.

While
1957

it

to

active

is

quite

date

and

exempts,

has

that
most

a

trying period for tax
the prospects for the

next few months

With

evident
been

are

encouraging.

the

lowering of the re¬
discount rate and potential easing
in

credit

restrictions

furnishing

the

impetus for improvement in
bond
prices,
the
market
ap¬
proaches the year end with more
confidence
hibited

at

than

has

been

ex¬

during

time
preceding 11 months.
any

the

The 30-day visible
supply of
municipal
bond
offerings
has

diminished

trustee of redistributed to holders

materially, contribu¬
ting to the present firm undertone
brighter outlook. Some quar¬
ters are forecasting a rise in prices
of
as
much
as
50 basis
points

of

during

ment ruled that income from tax-

securities

tax

expanded

national

Reserve

in

municipal

on

passes

nouncement

eral

and

by

state

tising campaign to acquaint the
investing public with the relative
State
of merits and security of municipal
conceived obligations.

introduced

was

Curtis

taxable

new

bonds

nue

Congress last July by Representa¬

held

298,333




sold out of the par¬

are

exempt

other

446,884

.

session

The Municipal Securities Com¬
fund, payment is made to
certificate
holders,
unless mittee of the Investment Bankers

motor cars,

ket
1955

securities

of

October

July

they

Congress.

ticular

nuclear

of

age

As most of them generally
require huge immediate cash out¬
lays, the only alternative for our
public bodies is to go to the mar¬

Supply Municipals

(000's
Beginning of Month:

that
next

the

System. Although
bonds. This idea was imme¬
quite lengthy, the revised regula¬
diately tagged as the
"conduit
tions
provide, in essence, that
theory" of tax exemption.
Another possibility proposed the certain heretofore ineligibleutilization of the fixed trust prin¬ special revenue obligations, "pos¬
ciple, where no continuing man¬ sessing a high degree of credit
agement is involved beyond the soundness," may be considered to
constitute
investment
securities
original investment. When any
pal

100,000 class
imprudent to
not the slightest doubt the pro¬
state that this has entirely solved
posal will raise provocative ques¬
the school question. Nevertheless,
tions.
Foremost
among
them is
it clearly illustrates what can be
the possibility of endangering the
accomplished when local govern¬
present tax-exemption status of
ments
utilize
their
capabilities.
municipal bonds. Concern is also
This is even more decisive when it
being expressed about reactivating
is
realized
that the per capita
the opposition to the tax-immunity
Federal
debt
now
stands about
principle which has been strongly
$1,621,
whereas
net
long-term
by the courts to date.
debt for the states is $65.00, and upheld
Some highly interesting sessions
the local average is $191.00.
can
be anticipated if and when
hearings are held on this proposal.
Broader Market Needed
rooms.

ends.

1957.

30-Day Visible

in

to pro¬

power,

July

*As

derived from other than

revenues

Our

January
April

15

1957, when they sold
$2,216,363,000 of bonds for school
purposes. That sum, together with

omitted)

Beginning of Month:

November

ability

30,

3.85

2.53

-November

Further testimony of the

of State and local governments to
finance
their
school
needs
was

3.74

2.61

Supply

The

Rights protagonists won a
satisfying victory in their defeat
of
the
Federal
Aid
proposal.

3.59

3.57

(000's

to

States

vide

July (a)

Floating

children.

own

3.68

1954

^Federal Reserve

its

educate

unable

3.17

2.54%

___

financially

was

3.09

1955

(a) As of August 15,

at

eral

little incentive to include them in

3.55

2.38%

exempt,

as

clearly

was

basis existed for
intervention
unless
a

Federal

State

It

local

no

3.39

2.56%

November 29_

level.

2.98

3.23%

income,

on

bonds by attract¬
ing those investors who now have

bond sales, was estimated

January.
November

that

at

portrayed that

school

and

2.95%

Averages—(Long-Term Bonds)

passing

if obtained from state and munici¬

be resolved

State

are

2.85%

1957.

Bond Buyers Municipal

ex-

to

meet the

the
of

months

when

Congress was
session, prooosals were introduced

Sept.

-

-November,
-November,
-November,

hoped

banks in the country
$13,139,189,000. As a group,
banking system
mittee for municipal Bonds, Inc.,
retains its position as the second
composed of 16 prominent offi¬
largest holder of public bonds. A
of cials of State and local govern¬ tabulation
of
the
holdings
of
in ments and professional organiza¬ obligations of States and
political

construc¬

tion, rehabilitation, and improve¬
ments, amounting to several bil¬

revealed between Oct. 1, 1956 and

APPENDIX

AAA

a

new

Yield Range Municipal Bonds
Rating:

$27.5

Non-Federal highway projects by
the States and municipalities will

have not been

On

is

in

bonds

written

cussions.

it

country

investment company to the share¬
holder.

problems and should

a

at

supplying 90% of the funds.

established,

not

and

consider it

the

ment

made

during

of

amount

billion, with the Federal Govern¬

Although this huge amount of
municipal bond issues was- underdistributed

outlets

new

new

estimated

problems

and

some

high¬ Missouri. That bill was
ways and highway improvements with
the
"conduit principle"
of
is planned over a 13-year period. preserving
and passing on the

r

vpar

this

the

7
°i
There- Sp0t-light for a while with several
b-a« +1! ^G1
fC "e+ seJ^ 4.uU billions having been distributed,
Anrt
S'i'?!/ q n6 WJhat has happened to the former
•

3

forge ahead. As of Oct. 1 Federal
Aid projects costing over
$2 billion
were under way. You will recall

account

Toll Road Bonds

sharp drop occurred and by May 2
figure bad

and

no difficulty in successfully
underwriting new offerings,
iii
many quarters there is an optimistic
feeling that still higher
bond prices are in
prospect for

of
long-term
municipal
yields averaged 3.23%. Al-

index

of credit. With the

market

ipate

most

the

implying

confidence, dealers began to antic-

municipal market? At the beginning of the year the Bond Buyer's
bond

announced

further easing

by ohr
on

stantial

of

existing

a

reciuirements

did

attracted

them, but are not necessarily
complete solution as a sub¬

ing

creation

market took place and an exuber- mands, revenue bonds probably
will account for a considerable
in the amount of municipal fi- ance caught hold. As if by magic,
share of municipal financing.
nancing. That is, unless an all-out balances of issues disappeared,
Interstate highway construction,
expanded defense program neces- Prices were higher, and, most imauthorized
by
the
Federal-Aid
sitates curtailment of all but the P01'tpnt ot all, investment demand
most urgent of state and municipal ®eeme.d insatiable. Following the Highway Act of 1955, continues to
effect

for

this

future of any impressive reduction

What

have

tne

vested

permanent
component of the
era*ty dismal outlook. But by the
opening..of business the( following financing structure of our local
governments. Unless debt limita¬
m01'mng, the situation had
tions are liberalized, in conform¬
little changed radically. A resurgence

As long as our population multiplies
and
demands
an
everincreasing
variety
of
govern-

there

bond

reappearing is somewhat remote.

i%, to 3%. Prior to that action

other public purposes that
will attain substantial proportions,

services,

of

requiring raising as among some investment dealers.
$16,000,000,000 annually. The bill was referred to the Senate
Ascending (yields on municipals Banking and Currency Committee
years,

as

substantial amount of those bonds

closing of the markets Thursday
afternoon, Nov. 14, when the re-

various

menial

class

brighter and a material
improvement
in
operations
is
evidenced, the probabilities of any

10

much

savings in
Whether or not any of these
are
not as yet in¬
proposals, or others, are eventu¬
municipal bonds.
•
ally adopted, they recognize the
heavy inventories, fluctuating
As mentioned
Several
heretofore, reve¬
interesting
concepts
markets, and resistance on the nue bonds accounted for 25% of have been offered for considera¬ perplexity of the situation in¬
the
distribution
and
part of investors. At times market the total volume during the first tion to widen the market for volving
orderly marketing of an increas¬
conditions required consolidating 10 months of 1957. Utilities, i.e.
municipal bonds. President Eisen¬
ing volume of public bond issues.
forces to enable submitting a bid electric and gas, together with hower stressed the
urgency of the
in order to underwrite some of roads and bridges, and water and situation, back in
Perhaps
of
more
immediate
1955, when he
the larger issues that were offered, sewers,
significance toward the broaden¬
comprise
the
that
principal suggested
Congress
enact
While the higher interest costs purposes lor which they were is¬ legislation for the establishment ing of the market for tax-exempt
were distasteful to the issuers, the sued.
It
is recognized generally of special investment funds. The bonds was the liberalization last
attractive re-offering yields were that the motivating factor for tne proposal would permit formation .July, by the Comptroller of Cur-r
enticing to investors,
issuance
of
revenue
bonds
has of ordinary management invest¬ rency, of some of the regulations
been largely an avenue of escap¬ ment
An unexpected and
companies for the purpose concerning investments in reve¬
electrifying

the

create

the

for

become

in

25

\

would

under

if

laws

certificates in

not

present

received

a

be

Fed¬

by

liquidating

a

or

fixed trust.

This

Another bill,

sponsored by five
to authorize

Democratic .Senators,
banks

to

revenue

earlier in
was

underwrite

bonds
the

and

was

and

deal

in

introduced

In context it
similar to previous bills. This
year.

legislation
has
among
State

broad

support

and
municipal
authorities, a swell as their repre¬
sentative organizations. The prin¬
cipal opposition to it is centered

the

may

several months.
over-optimistic in

next
be

view of the authorized but unsold
issues

billion
in the
bond market is apt to influence
many
governmental agencies to
standing

mark.

The

re-enter

at

the

$3

improvement

the

market

with

issues

previously withdrawn.
Without

activity

can

a.-

doubt,

widespread

be counted upon and

higher price level seems realistic
during the early months of 1958.
a

26

Continued

from

available

5

page

to

that

without

jobs

force

labor

are

work.

seeking

and

number

been

been

Our

maintained

an

have

but

expansive force.
in the export

experience

market demonstrates the

econom¬

benefits accruing from invest¬
ment in resource industries. The
ic

of

flow

of

ment

is

capital into the develop¬
industrial

paying

now

dends.
there

materials

raw

divi¬

substantial

In the current year to date
has been a sharp drop in
and

wheat

flour

exports and a
reduction
in
such
items
as
grains,
planks
and
boards, copper, lead and zinc. The

significant

in

decline
offset

items

these

in

increases

by

has

been

other

ex¬

probable level of economic activ¬
ity in 1958. The indicators point
to increased spending by all levels
of government. Consumer income
has continued to rise throughout
has

strings to our export

many

bow.

to

reason

there!

though

as they are by the
the Canadian dollar,
industries have done

on

export

our

job. In the export
in all fields of business,

as

sharp de¬
spending,

signs

definite
off.

the

But

possibility of a spurt in consumer
spending cannot be dismissed and
would be a powerful force on the
sion

it

as

Sums

To

sum

Outlook

Up

evidence sug¬
worst we are

the

up,

that

expan¬

in 1955.

was

the

at

brief period of con¬
some of the dis¬

a

tortions, resulting from inflationbred attitudes to costs and prices,
will be eliminated. Once we have

should
one
of the hazards is the credit
again expand on a sound and
risk. We, of course, have the Ex¬
port Credit Insurance. This has healthy basis, though perhaps not
at the spectacular rate of the last
been helpful but a real problem
few years. The situation will, of
exists
where
the
exporter
is
course, have to be watched care¬
asked to extend unusually longfor any indications of a
term credit. There have been sev¬ fully
downward spiral becoming a def¬
eral instances where inquiries for
capital equipment have had to be
turned aside. Even assuming Ex¬
port Credit Insurance is available
there
remains
the
problem
of
long-term credit and the resulting
paper

herdly be regarded

can

as

ordinary banking proposition.
One solution might be to make

an

rediscount

available

facilities

to

the chartered banks in respect to

long-term

credits,

export

or

to

have the Government or the Bank
of

Canada

do

nancing. In
is

the

the problem
serious study.

of

investors

Foreign

continue

to

demonstrate their faith in the fu¬

of

ture

the

Canadian

economy.

Though
it has
been
apparent
since early in the year that the
boom

has

run its course, the in¬
foreign capital has con¬
fact, It has increased.
This
explains the persistent
strength of the Canadian dollar.

flow

of

tinued.

As

In

approach the end of the
one's
thoughts
naturally

we

year,
turn

toward

As

1958.

to

an

end

the indications
omy

but

are

balance

on

that the

will continue to

econ¬

move

side¬

1958 Prospects

Prospects

the

that

are

investment

capital
in 1958

programme
will be about the same as in 1957.

Many of the large projects such
the

St. Lawrence Seaway and
the trans-Canada gas pipeline re¬
as

main

1957 has been the increase in sav¬

unfinished

projects

are

and

likely

subsidiary

develop.

to

Residential construction is on the
rise again and it would not be

will recall

You

made

I

address

a

we

Canadians

that

extent

to

since decisions

the

of

calls

boom

this

major depression at

time.

The

unemployment
of

is

unfounded

pessimism.

misinformed

statements

From

a

sons

have

In

and

ex¬

prospects appear to be for

continuance
even

total

of

increase.

this.

They

a

may

We

would, of
course, be adversely affected by
any sharp drop In business activ¬
ity in the U. S., but this does not
appear

ance,
to

to be in prospect. On bal¬

our

play

a

exports

destined

stabilizing role in 1958.

Government

spending

seem

hold

and

the

consumer

key




to

the

faced

are

people

123,000

more

last

were

The

year.

at

total

labor force has grown this year at
a
faster rate than has been the
at any time since 1945 and
1946 when war veterans were re¬

case

per

see

employment.

customary 1 to
1957 will almost

annum,

certainly

growth

a

in July,
through Octo¬

far lower level than

a

rule, and

as

gen¬

a

rate

of

4%. This remarkable growth is in
itself evidence of prosperity, and
some

distor¬

I

us,

am

sure,

once

are

that all

aware

of

of

and

responsive to the worry and unhappiness of those Canadians who
without jobs.

are

is
to

a

Unemployment
concern not
simply

matter of

government,

ness

and

citizens

labor
of

Nevertheless,

but also to busi¬
and

this
we

indeed to

great
must

all

country.
recognize

that unemployment can never
fully eliminated even at
height of a boom.

be
the

Most economists regard 3 to 4%

unemployment
ment

level.

as

The

a

full

latest

protection. The establishment of a

be misleading.
our

employ¬

figures

control

capitalized and bank credit has to
bear some relationship to capital.

boom

responsibil¬

"to regulate credit and cur¬
rency in the best interests of the
economic life of the nation, to"

ity

Many small business concerns are

this field

and

value

might be worthwhile.
"
Much has
been written,, about

external

protect the
national

the

of

monetary

„

unit and

to

mitigate by its influ¬
fluctuations in the general
trade, prices,
fected by tight money.
Actually,
and employment, so far as may
between
2.8%
and
1.9%.
Thus I doubt that small business has
be possible within the
scope of
comparisons
of
unemployment had less bank credit available than
monetary action, and generally to
levels in the summer and fall of
formerly.
The main problem is
1957 with a year earlier tend to that small businesses are under¬ promote the economic and finan¬
Furthermore
recent

the

capital

nature

of

investment

has increased the vulnerability of

labor

our

force

of

seasonal

Unusually

ployment.
bers

to

large

struction

num¬

have

workers

taken

in the

employment

kind
which

projects

em¬

of

con¬

ad¬

are

versely affected by local climatic
conditions. Also, while I expect
1958 to be a good year, I do not
expect it to rival 1956 in terms of
the rate of economic growth; and
I have already mentioned the un¬
usually large increase in the labor
We

force.

therefore

must

unemployment to be higher in the
coming year than it was last year,
expecially at the seasonal peak.
t

International Trade
The

high
has

level

of

prevailed

prosperity
all has

over

the

of

have

economy

market changes.

to

Small
find

business
difficult

it

capital.

partnerships.

'

turers of durable

manufac¬

goods. But

even

in the non-durable goods segment,
the

experience

has

domestic

varied.

been

products
have
competition from

increased

imports.
the

In

circumstances

it

is

per¬

haps not surprising that agitation
for higher tariffs has increased.
quarters,

some

looked

are

difficulties

of

higher

tariffs

solution for the

on as a

particular

indus¬

tries. Then again, there are those
who
believe
that
higher tariffs
essential

to

further

develop¬

secondary industries.

our

There is,

of course, a
these
views

between

Thorneycroft
U.

for

Canada

K. Under present

the

and

proposal

between

trade

wide gap
free
the

and

conditions it

would appear to be impractical.
The

proposal

Market

in

for

Western

the

is

depend

forth

be

not

an

association devoted to regional

If

the

only be

can

former,
If

good.

its

the

latter, they will be bad.

produce revenue, but to assist
in
the development of essential
industry. But higher tariffs are
two-edged

swprds.

higher prices for
nations
our

which

exports

tariff

game

against

They

mean

consumers.

can

Also,

customers

are

play

and

Canadian

raise

the

for

high

barriers

products.

The

ultimate decision must depend on
the over-all good, and not on the
needs

of

Protection

of

In recent months there has been

.

.

It is also one which we have

squarely and one which

not faced

will

we

shown

the

in

to

become

likely
reasonably efficient or

other
measure

countries

of

have

economic

a

ad¬

cal'policy

restraint

As I men¬

of

terms

in

a

current

In constant dollars it will

little

and

change

a

on

per

our output will
be
other words, we have

as

that

this

of

the

dollar.

community

prepared to tolerate a great
deal 'more inflation befqre doing

seem

They, seem to

anything about it.
that

feel
more

continued

cure.

is

and less painful,

palatable,

than the

inflation

Yet creeping jinfla-

tion decreases the

real income of

gections of the community..
Higher dollar income may give
some
people the feeling.,they are
better off but this is merely an
large

illusion

if prices

have risen more

we

have

economy.

designed
pressures

had

...

most
a

full

of

this

year

employment

policy
to
check
inflationary
has been subjected to
Yet

.

monetary

ratio

may

pro¬

banks
reserve

be

in-,

by

At the end of 1955,
Canada, as an alterna¬

bank lending.

that

power

Act

cash

the Bank of Canada*
in successive stages up to 12% if,
it is found
desirable to restrict
creased

in

purchasing

Bank

chartered

8%

an

the Bank of

the

The
the

that

keep

paying ourselves more for
doing less work. This adds up to
higher prices and deterioration

been

of

measures

15%

the

reduced.

vides

must
and

such

then

where

credit seems

bank

in

liquidity re¬
for chartered banks should

serve

be

likely.

Reserves

situation develops

If the

expansion
desirable

to avoid

are

we

future.

pres¬

indications

now seems

as

Bank

have

this year will achieve

record

show

if

.

are

policy of restraint is be¬
ing eased. One of the dangers is
that we may move too fast and too
far in this direction, especially if
there is also an about-rface in fis¬

.with

we

earlier, our gross national

tioned

new

than

energy
to date,

tackle

to

have

greater

there

and

that the

-

time.

inflationary

of

lessening

sures

facing Canada at the present

Throughout

not

monetary

a

\

,,

lems

should not be afforded
are

trade,

production,

people seem to think so.

Creeping inflation is one- of the
most difficult and serious prob¬

than incomes.

particular

industries which

large

«.

Vi p

industry.

a

to

where

u.v

.

Creeping Inflation

Some sections of the

function not only

a

of

be possible within the scope

iinay

which .should

given study.

In

of the

level

eral

prices and employment, as far as

basis

protectionism.
effects

influence fluctuations in the gen¬

proposal,

concrete
one

as

down.

merely

:

The

profits

cooperate

a

as

rather

but

capita

or

The economic and financial
of the country entails a

stable currency.

be y ex¬

given to earnings; retained -in the
business up to say $50,000"p^r 'an¬
num.
Of
course,
abuses- would
have to be avoided.
Tnis-is. put

increase

and production

should

growth and

words "as far

whether

participating countries

real. concern

welfare

$20,000 to"$25,Q0<J

of

on

the income

Our

just higher dollar figures each

year.

lower tax rater applies

a

genuine effort to

a

in the

be for sound economic

step

a

dollars.

it is

The

"to

nation.

not

The recent proposal

amount

which

on

mate test will

in
which I should
responsibility

to

refer.

to

action.
Note
the
as may be possible."
in the right direction,
Monetary policy is not a cure for
but it is hardly adequate. Perhaps
special
consideration should " be all our economic ills, though some
to

are

ef¬

•

But some solution needs

found.

uals

its

preamble

preamble suggests, as I have
pected to provide long-term and already 'mentioned, that the cen-<
tral bank should mitigate by its
equity capital for business—large

fects

about

.

former times

cannot

Banks

business.

product

concerned

°

expansion'of-the

available for

was

Europe is of
interest to Canada. Many individ¬
Canadian trade. The ulti¬

,

too

regulate credit and
best interests of
the economic life of the nation."
Inflation is not in the best inter¬
ests of the economic life of the

small

the

trouble

Common

a

,

expect

we

monetary action.
are
several phrases

currency

enterpriser can
plow
back
profits. They have
diverted to the government" some
which

to increase from

than

."y1

-

of the Bank of Canada is as I have

slowed

have

Perhaps

'stated,

problems is thpt high
up the rate at

One of the
taxes

Dominion."

the

me

from

There
the

like

equity capital. They are one-man
or
family concerns, or perhaps

have

better

much

outride

seek

to

be

done

a

of' them

many

of

point out that full
employment
is
not
mentioned.'
Neither is steady economic growth-.
Yet, we now apparently regard
these as objectives of monetary
First, let

raise' equity

to

small

too

are

small.

in¬

For

welfare

cial

!'may

concerns

,

fact,

In

to

others.

of production,

*

vulnerable
' * ^
T

whoys over-trading is

or

than

level

capital.
This is understandable but it'does
involve risk.
A firm of "person - policy.

stance, non-durable manufacturers

better

done

large

too

of the money that in

not been evenly distributed. Some

segments

do

to

endeavoring

ence,

adversely af¬

volume in relation to their

expect

to

at

say

tral bank is given the

importing

are

we

;

to the preamble of
the Bank of Canada Act the cen¬

According

products which could be made in
Canada with a minimum of tariff

small business being

was

Tariffs have
me

not

or

Monetary Cure-All

No

companies are

research group to survey

tions.
Let

More

expands.

undoubtedly a
factor in
the inflationary pres¬
sures then being experienced. The

per¬

gainfully employed than

are

there

more

fact,

force

hope to attain

can

eral

serious unemployment sit¬

also

work.

cates, some export industries have

maintained

and

uation, that something in the na¬
ture of a crisis exists. Actually,
there are more people out of work
today than we had a year ago but
we

labor

This is

ber.
we

ment of

we

is bound to result in

our

whether

the

would

ing rather than

However,

hand, unemployment fell to
of

1956 and held there

are

gather that

Secondary industry will develop
as
the Canadian, market

1.7%

reports appearing in the press one

2%

demand.

illustration

an

or

of the postwar period new
capital investment has been an
expansive force.
In the coming
year it is likely to play a stabiliz¬

ports have been well

about

inhibit the authorities from
carrying out sufficiently restric¬
tive monetary policies to control
inflationary pressures.

may

Industries

Secondary

other

In

discussion

current

Board

the

of

and more yU. S.
finding it advan¬
tageous to set up branch plants in
Canada. The question arises as to

Some

a

staff

the

studies.

make

to

further

faced

people seem to feel
levelling off in business ac¬
tivity is a forerunner of a major
depression. There is no basis for

most

been adversely affected by de¬
clining prices, and a decrease in

cau¬

that

the

indi¬

for

posed by tne action of the mone¬
tary authorities.
It is becoming
increasingly apparent that fear of
inducing
serious
unemployment

problems here is the

takes

should be increased.

unemployment reached 5.3%
in March, 1956, and 6% in that
month
one
year
later.
On the

tion in making business decisions,

the fear of

the

it

impor¬

an

picture. Both 1956 and 1957 were
for the economy,

but too many

civilian

experience

highly

economy

attitudes. Now,
more than ever, businessmen must
exercise imagination and keep a
balanced perspective. A slowing
down

of

prosperous years

more,

psychological

of

1957

I

affected by the

are

to

our

is

healthy

a

always been

One

aspect of the Canadian labor

which

Instead

As

save

confidence

Business

important

has

employ¬

yet

reduce the inflow of for¬

can

turning

expansive role.

an

ago

eign capital.

surprising if we witnessed an ex¬
pansion in capital spending by
secondary industry. Throughout

an

that in
year

emphasized
the
importance
of
savings to the Canadian economy.
Savings are essential to finance
new
capital investment. To the

with

ways.

in

development

significant

ings.

said

I

earlier, the state of the economy
remains healthy. The boom has
come

inite threat.

fi¬

necessary

any case,

deserving

achieved that, the economy

A

tant

in

applications have

corresponding ratio in the United
States for those months ranged

side of renewed economic

solidation when

marvellous

a

field,

is no

any

are

levelling

is

it

that

expect

im consumer

crease

faced with

Handicapped
premium

year.

In these circumstances there

gests

-

last

than

slower

been

ports, including petroleum, nickel,
iron ore and uranium. Truly, we
have

rate of growth

though the

1957,

Perhaps

variation

Seasonal

restraints nave argued
should be removed, since
prices have continued to.advance.
But they would have risen even
more except for the restraint im¬
they

been referred to the Tariff Board.

time

ment

of

of

Opponents

criticism.

monetary

and detailed study.
A

26,1957

Thursday, December

.

.

.

severe

up¬

should

undertaken after careful

only be

about the level reached in 1955.
have

drastic

a

tariffs

in

revision

ward

percentage will rise to at least 7%
during the customary winter
slackening of activity, which is

Now and Years Ahead

Certainly,

vantage.

that this

believe

observers

Some

some

civilian

total

our

October,
3.6% of

for

are

me

indicate

and

Canadian Business Outlook

not

Chronicle

The Commercial and Financial

(2834)

increasing cash reserves,
to the chartered banks
liquidity ratio of 15% be
established, made up of the cash
reserve of 8%
and an investment

tive

to

suggested
a

equivalent to 7%
deposit
liabilities.

in treasury bills
Canadian

of
The
any

purpose was to ensure that
expansion of bank loans that
at that time would not

occurred

accomplished by the relatively

be

process of reducing
vestment in treasury bills but

painless

in¬
by

painful alternative of
selling longer-term securities and
incurring the penalty of losses
thereon.
Recognizing the need to
control inflationary pressures, the
the

more

banks agreed.
Instituted

as

a

temporary

emergency measure

liquidity
frnvrJprf

a?

reserve
a

and

this additional

must not be re-

nprmanpn*

feature

of

Volume

186

Number 5702

.

.

The Commercial and Financial Chronicle

.

(2835)
our

banking

no-

structure.

particular

virtue

There

in

figure and the

extent

bank

the

is

change

policies

mands and

15%

in

invests

to

which

have

a

be

be

should
useful

rescinded.

reduced

It

when

when,

or*

neutral.

with

has

i3

Earnings of Seaboard Air Line

monetary. pulicy

Perhaps it should

-

will have
ever

Sometimes

plexed-by

impose monetary restraint.
Another

which

measure

put

in

my-

opinion should not be regarded

as

permanent is the

of

the

present practice
of Canada of estab¬

Bank

lishing

its

rediscount rate at
above the weekly rate

of ,1 %

lk
on

treasury -bills.
This means that
the rediscount rate merely follows
the

market

and

indication

is no longer an
monetary
policy.

of

This action taken by the Bank of
Canada when it was
permitting
the money market to tighten itself
was

probably
appropriate,
but
with the change in conditions the
of

use

this-device

considered.

when

should

There

will

be

be

re¬

times

will expect the

we

Bank of
Canada to give leadership and the
rediscount rate is one means of

determining the direction

of

mone¬

tary policy.
Now let
to

the

into

me

return for

of

moment

a

inflation.

I

feel

past is due to the fact that wage
increases have out-run the rise in

productivity. The

my

gt

am

rimkm

bit per-

a

inability

own

to

to

few short paragraphs
helpful suggestions that

certain

actual

will

practice,

work

in

out

though
I
have field tested them
myself, 'or
have related as accurately as
possible the-results of other securities

who

men-

experienced.

even

qualified

and

explicit, I

can

-are

To be

remember

former
bear markets,
1932-33, 1937-39, 1947-49—periods
when securities prices were falling, when public participation in

the stock
arouse

market

and

•

years

pessimism

seat.

this

m-

difficult

was

when

the'driver's

in

After

business

to

and

the skill and know-how that
enables you to ride out the
trying

days, and to still do
job

and

Yet it can

The

keep

construe-

a

clients,

your

be done.

first

step

-

;

is

to

keep

your

perspective sound and not become
emotional.

The

-

individual
you

market

opportunities

,

in

many

will

securities

offer

from

whfrf

now

ttf

MIGHT

BE

h t

tt

"BUY" .AND

A

and

he

HE

said:

a mo-

"I've

been

thinking about doing some business
with you, how would you
like to have

order

an

to

buy

me

of that stock at 20, if I get it
and if I don't it will be

some

O.K.,

all right too." I took the
order, and
'

although at the time he gave it
to me the market was about 20%

above his price, I
of

one

am

positive that

two

things will happen;
the stock in question will sell at
his price, or if not, there will be
other business we will do together.
As I write this week's storv the

Ironly one-Llf

market

from his limit.

away
not

worrying

pdnt

This

about

man

"bear

andtodayTsThetime
such

investors—they

who

make
with

ness

tomeet

the

are

out

money

and

supplies.

of

The

ma-

main-

of

the 1956 months.

securities salesman
VALUE and how to

a

year ago.

Traffic

ratin stood at n* «<*.
at
ratio
75.6%

t6,!1

in

of

-V?0?;

s fear-w.prf°'^aV y
be a
yer£ely affected by the cold snap
n*
lonc^,an the resultant dam-

?ge t° Cltrus cr°Ps. This damage

has

been

of

embargo
-

an
XT

.
*

such

,
A.

j

ui

been

c^rus £,F9ps

™

^0UD1;eciiy .Wl11

on
Z"
-i

of Florida.

u,

that

placed
r

_'j

n

_

extent

an

has
--

J!16 ~l114menj;

be

.

.

from

*1°

Ori

u

wfer

fh"

S+S

•

Bond Club of L. A.

H

Elects New Officers

„

H.

,

™

^

m

ANGELES, Calif. —War¬
Crowell, of Crowell, Weed...—,
Co., was elected President
,

&

on

at

meeting

a

0f

Bond

Club

members held
at
the
Los
Angeles Stock

lwn

™~

Club. Gordon B' Crary>

£v?rilnri

m™v,

5" ^ E' E*

Kocie

a

—

0f The Bond Club of Los
Angeles

+v?I Exchange

^
..«

Ia

LOS
ren

,

usual $2-50 a share. Much will de-

en-

j

Sep nod.

in

Eg** ,th5 ^

.

were

some increase in freight

sit ivi'n e~C
rii^ino-

y

Despite this adverse factor, dif?
railroad declared
^eregular quarterly dividend of
62 /2 cents a share for the final

?■

^fron ^
of a drop in
g
.wage

This un-

reflected

u

+.

not
Jf16 latter were not nHaJ* suffioffset

U1yinailly tms is tne sea...

p

ciently by
+

^ Peak movement of th.s com^

combination

f

against 74%.

*

...

a

t

r

earnings in December and

**
y ai;

pvpr

Don't hesitate to accent and

The transporta-

a

share

ones

"bear

in

eanSngs^were ^qual'to0'mHI creaseto35°lTfrom^33^avem
^areTwith t.55
earUer
The
overaU
^emtog

they will do busi-

talk their language.

on

and

a,s comPared with $16,946,665

the

who knows

terials

tenance ratio for this
period was
32.7% as compared with 32.7% in

is

mar-

kets"—he has ample funds for investment and he BUYS VALUE.
There are many others like him

markets"

this year naturally were affected

by higher wages and costs

reported net income of $15,211,368

t w n tt r

TOLD ME. Then he paused
ment

is to relate

cure

average during much of this year,
For the first 10
months, the road

Bear Market

a

was

many

man's

a

perspective changes. It takes time
to
acquire patience,
confidence,

An

important aspect of the inflation¬
ary rise in prices of the
recent

T

a

the sort of

live

question

when

write this-column I

tios whenever it is found
necessary
to

Opportunities in

a

progressive move¬
higher liquidity ra¬

Railroad have held up better than

By JOHN DUTTON

be

in. successive

ment to

Seaboard Air Lines Railroad

Securities Salesman's Corner

no

money

steps. Un-'.
less this is done the
danger is that
we

Railroad Securities

to

function

easy

is

left

as

bit of

a

every

treasury
bills ward,
its judgment.
Once the conditions which
brought
about
its
adoption have disap¬
peared, and we may" already be
in
that
position, the 7% ratio
should

occasion
de- dence, to the continued
economic
luck, Canadians development of our country and to
reason
to look for- a rising standard of
living in the
optimism and confi- years to come."

27

trialz-l

of

increases in wages to increases in.
output per man-hour.
It would
also

be

a

business
to

healthy development if
and

share

labor

with

would

the

agree

consumer,

and ears open and

vestors
and

who

have

also

had

CONTACT inpast

good

history

to back them up.

greater purchasing

Substantial Funds and Experience

for the

power

dollar.

Here's
Long-Term Future

i*

On

to

number of occasions I have-

a

expressed

be

can

confidence in the
future of this country
and in closing I should
my

long-term

just

done

falling

Investor

sample

a

in

of

ago I

markets

of

made the

that

Earlier

I

mentioned

balanced

a

wish

to

emphasize

Canadians do not
to

get

fear

the

need

perspective

and

this.
to

seem

I

Some
be able

from the haunting
repetition of a major

away

of

a

depression such

as

'thirties.

time

Each

had

we

in

there

slight

adverse

nomic

climate, they shout

shift

in

the

is

the

a

eco¬

emer¬

and look for the worst.
it is true that we can talk our
gency

If

way

into

depression

a

business

by

confidence

Canadians

are

upsetting

then

some-

going the right

way

about it.

startecf out in life
and

acquaint¬
men

ing enterprise

Someone has remarked that in
free country "change is the
only

constant, and the tempo of change
itself
of

is

the

inconstant."
Canadian

That

is

economy.

true
•

The

tempo of change has slowed down
for

the

not

time

mean

being but that does

that

we

headed

are

for

economic disaster.
In

past year the Gordon
Commission on Canada's Economic

Prospects

has

brought down its
preliminary report. For the long
tefm it paints a bright future for
the

Canadian

May
1
suggest that it should prove prof¬
itable reading for the pessimists.
The report emphasizes that we
can
expect periods of adjustment
such

as we are

economy.

experiencing at the

present time.
In

their

missioners
that

introduction the
state

there will

downs

in

the

that
be

"we

many

level

of

Com¬

expect
and

ups

economic-

activity in Canada over the next
25 years" and in the
closing two
sentences

of the

report:

"We shall have
in the

future,

ones.

But

ible

policies,

our

well

as

given
a

This

dull

periods

as our

bright

leadership, flex¬
willingness




to

its

of

kind

in

our

had been

man

good many

better

a

days

freely

those

when
offered

who

exnerienee

are

have
huv-

through
bear markets, panics,

stantial

a

want

have for

to

citizen

as

you

He

told

me
he had been
buying life
insurance stocks for the past few
years.
It was a hobby with him.

At

night, he would take out his
Manual, his charts, and his

Best's

and he would study.
quite a bit of original

records,
search

on

the insurance

He
re-

industry,

he corresponded with the officials
of many life companies and
he
was

his

thorough

as

facts

before

vestmept

in

stocks

he

his

as

in
he

these
was

successful

ested

in

I

was

building
made

life

up

in-

an

insurance

in

building up
manufacturing
sincerely inter-

his basic research and

he

enjoyed telling me how he did it.
(That's just plain old fashioned
horse

sense—if

you

find

a

man

who has made

a success out of his
business life and out of his investments and he wants to tell
you

how

he

After

did
we

versations

it—LISTEN).
had

a

on

the

few

other

con-

telephone
I
asked this man what he thought
of one of"the fastest
growing life
insurance companies in this country. I had reason to believe that
the present time was opportune to
consider

buying some of this company's stock myself. The decline

Phila, Sees. Ass'n

and that he

also watching the
market in the stock.
I asked him
was

mar-

generous mai

y

I-??'1 S t e r n,
qTo'Tn'
f

o

Frank,

Earnings for the full

1957

year

have been revised downward to
with

$4.20
in

that

a

share

reported

1955.

It

in

1956

might be

the years

over

compared

as

and

noted

the Seaboard

Meyer
Warren

& Fox, Treas-

H.

Crowell

urerjMark
Davids, of Lester, Ryons & Co.,
Director; and William S. Hughes,
of
Wagenseller
&
Durst, Inc.,
Director.

has experienced

i

outstanding
growth in its territory, both in re-

At the business meeting, out¬
going Bond Cillb President, William D> Witherspoon, of WitherPHILADELPHIA, Pa.
Leigh- industrialization.
The latter has spoon &
—^
Company, Inc., warmly
ton
H.
Mclllvaine
of
Goldman, added much to the diversification congratulated Bond Club memSachs & Co., has been nominated °1' the district served, has brought
bers for their outstanding particifor President of the Philadelphia about a higher freight rate classi- pation in Bond Club activities in
Securities Association, to succeed fication of traffic and has made
1957,
President-elect Crowell, in
John D. Foster of Studley, Shu- the Seaboard less dependent upon
an address to
members, pledged a
pert & Co., Inc., whose term exagricultural traffic than formerly."continued high level of activities
pired. The annual meeting and
Heavy shipments of phosphate for the Bond Club next year, and
dinner of the Association will be rock in recent years has been a indicated that a notable

Receives Slate

spect to increase in population and

,

,

Mr. Mclllvaine has
investment

been

securities

in

field

former

A

President

of

the

factor

in

maintaining gross reveaddition,
pulpwood,
products, construction maIn

nues.

the

paper

for

terials

more than a quarter century and
has been associated with Goldman,
Sachs & Co. for the past six years,

and

manufactured

ucts have

been

portance.

This

moves

Mu-

board

nicipal Bond Club of Philadelphia,
Mr. Mclllvaine is a member of the
Merion Cricket Club, Haverford,

ways.

at

a

of

Commerce _of

the University of
Pennsylvania.
Other officers slated
by the
Nominating Committee to be voted
at the annual meeting are:
Spencer D. Wright, III of Wright,
Wood & Co., Vice-President; Wilon

able to

ham G. Berlinger, Jr. of Elkins,
Morris, Stokes & Co., Treasurer,
and William A. Webb of DeHaven

Club

members

in
*

PkarW Carman Onens
v^armdn wpens

generally
high rate and the Sea-

has been

Bond

1958.

increasing im-

capture

a

Charles H.

in

Carman is engaging
business from of-

securities

a

fices

at

York

City,

107

William

Street, New

In

air lines has just about been able
to hold its own.
The

dress

traffic

large portion of it despite competition from trucks and water-

strong

group of
speakers would be invited to ad-

prod-

addition, the Seaboard
Pa., and the Midday Club of Phila- has continued to be aggressive in
delphia.
He
attended
Episcopal the solicitation of passenger traffic
Academy and graduated from the and despite intensified competiWharton School of Finance and tion from other railroads and the

road

continues

financial

to

position.

be

in

As

a

of

*

pavrnnml Orw>n«

waymona upens
LOS

ANGELES, Calif.—James
W. Raymond is engaging in a securities
1521
on

business

rary

offices

at

Jan.

1

will

admit

Arnold

S.

Corrigan to partnership,

sepb 30, 1957, cash aggregated
$3,493,197; temporary cash invest$15,999,295; and special deposits, $1,504,384. This compared
with

from

Wilshire Boulevard,

1

^

1

n

,

A J

J* vareene Admits

ments

cash of $10,879,209; tempocash investments of $21,935,& Townsend, Crouter & Bodine,
751- and special deposits of $2,Secretary.
593,188 on the like 1956 date. Net
The following have been normcurrent assets (current assets less
na^ed lor the Board of Governors current liabilities) totaled $22,Association to serve for 597,493 as compared with $29,400,Jbree, y?,ars: Spen<i?r .r* WrlSht, 201. Debt due within six months
JL',,•Wllliam G- Berlinger, Jr., from Sept. 30, 1957, and consistWitnam A. Webb, and John r. big mainly of equipment trust
Erdosy of the Insurance Company certificates, amounted to $7,553,North America.
q00 against $6,869,000 on Sept. 30,

David
street

J. Greene &

New

York

Co., 72 Wall
City, members
Exchange,

0f the New York Stock

,

1956.

Merrill Lynch Adds

from

the former high, which was
attained around a year ago, was
about 30%.
He told me that he
liked the company, liked its future

P y

$4.53

would

customer.

a

a'pWout'by'a'geTierous

such
Sin-

around $3.75

adjustments, and reces- held at the Sheraton Hotel on
sions, and yet today he is as su'o- Thursday afternoon, Jan. 23, 1958.

business.

the

boy

poor

business

did
a

a

quite a few trials had
business that was the lead-

a

state.
a

as

after

built

ingr

are

Several

in my community. We had lunchof ours,
eon together and
like to reiterate
during our talk
my faith in Can¬
I learned from him that
ada's destiny.
he had

for

and
a

the
are

what

of the wealthiest

one

and

fifpm
them.

ino-

friends and

during

securities

courace
courage

With

earn

"less"

for

constantly.

months
ance

tlic

can

income

through price reductions, some of
the benefits of
any rise in pro¬
ductivity.
The result would be

Look

you

experienced

are

some

(Special to the financial Chronicle)

D.

CLEVELAND, Ohio — Donald
Lynch is now connected with

The Seaboard is regarded as a
highly
efficient
carrier,
being

Control.

the

first

10

&

now

Calif.—John

with Rupert M.

Co., 170 South Beverly

Drive,

Now With Inv. Planning
(Special to The Financial Chronicle)

& Co.

results

for

stender is

Operating

east.

Traffic

BEVERLY HILLS,
q

Adams

months of

Merrill

ized

M. Adams

(Specir.l to The Financial Chronicle)

Mass. — Thomas H.
has become afiiliatea
with Investors Planning Corporation of New England Inc., 1 Couit
St. He was formerly witn Ke e

fully dieselized, with roadway in
excellent condition and practically
the entire system with Central-

Lynch, Pierce, Fenner &
Beane, 216 Superior Ave., North-

Joins Rupert

BOSTON,

Freeman

,

28

tion

Coast Exch. Div,

Coinedfrom page 4

SAN FRANCISCO, Cal.—Nomi¬
nations for Chairman of the Board

United

of Governors

the

Francisco
vision

steel

Di¬
the

of

Pacific

10%

Nominating
C

mmittee.

o

T h

Annual

e

held

be
Jan.

Davis

W.

George

Chairman of the Board: George

a

of Gov¬

H. Berl,

Sutro &
Walston

Cullen,

J.

Daniel

Co.:

industry

automotive

The

projecting

is

a

volume

sales

stated

Jr., Shuman, Agnew & Co.

nearly 50%, bringing total new car sales in the United
to 5,600,000 as against nearly 6,000,000 this year.

Djuncan of Calvin E.

E.

Qo., and Ronald E.
Kaehler, President, are carry-over
Duncan

The

Davis

W.
Chairman will be filled

as

by the

meeting

15,

Jan.

on

1958.

imports

cars

may

be in

States

The

for

Board

the

nine

while the advanced pro¬

that

factories.
"Ward's" counted last week's passenger car

assembly at 139,4% decline from 145,503 last
use of Saturday overtime

356 units for United States plants, a

week that found Chevrolet limiting its
to

three

com¬

year

with

in accordance

governors

the Amendment to

stitution

lieu

of

the Con¬

adopted Nov. 1, 1957, in
seven

previously

as

prescribed.

Inv. Ass'n of N. Y.

plants

against eleven last week and Dodge and De
work week.

as

G.

It

that

added

certain of the

Gallagher, manager

industry's plants will observe a

"long"' Christmas holiday this week as assembly operations a^e
to be shut down from Wednesday, Dec. 25 to Monday, Deo. 29.
"Ward's" pointed out that the

output trimming represents an
adjustment to mounting dealer inventories and lagging auto sales.
It added that January-March next year looms as a "soft" period
in the industry's postwar factory operations unless auto buying
develops a pronounced spurt after the year-end holidays.
Some of the auto

Elects Officers
William

year

despite

1958

car

both

as

companies should fare unusually well next

of

Invest¬

the

ment Association of New York.

Worthington
Mayo-Smith
of
Merrill Lynch, Pierce, Fenner &
Beane was elected Vice-President,
Kichard C. Egbert of Estabrook
& Co. was elected Secretary and
J.

William

Struthers

Middendorf

Co.

&

of

Wood,
elected

was

Treasurer.
Committee

Chairmen

tertainment,

John

En¬

are:

G.

Peterkin,
Laurence M. Marks & Co.; Educa¬
tion, Lewis J. Kaufman; Goldman,
Sachs & Co.; Membership, John F.
Bryan, Smith, Barney & Co.; Pro¬
gram,
David
C.
Clark,
Clark,
Dodge & Co.; Publicity, James F.
Burns, Blyth & Co., Inc.
The

New

Investment

York,

with

Association

of

membership
employed
in the investment banking busi¬
ness, has as its joint purposes the

of

over

a

500 young men

promotion

of

spirit

a

of

under¬

general sales reversal, "Ward's" continued, since
are invoking a shake-up in market shares,
make and price class.

any

to

car

income declined

Personal

further during November with the

drop from October amounting to $500,000,000, on a seasonally
adjusted basis, the United States Department of Commerce re¬

•.

decline in personal income originally was
announced as a flat $1,000,000,000 on a seasonally-adjusted basis.
However, in the latest report the department revised this figure
to $700,000,000.
October,

Despite the fact the November annual rale of personal in¬
was
down from August's $346,600,000,000 annual rate, it
still is well above the $334,900,000,000 annual rate of November,
1956.
Tlie annual rate for the first 11 months of this year at
$343,000,000,000 is

$17,000,000,000 ahead of the like period

some

of last year.
In the latest month, wages and salaries were down by about
$1,000,000,000, the Commerce Department said, reflecting lower
employment and a shorter average work week than in the pre¬
vious month.
Of the other components of the personal income
estimate, proprietors' income also was down.

the

Since

salaries

have

record

rate

dropped

by

reached in August, total wages and
$2,500,000,000, the department noted,

with the bulk of the decline concentrated among production work¬

durable

in

goods

manufacturing

mining

general, public's

education in the investment busi¬

A

association

is

conducted

for

members.

A

which

this

series

a

the

the

of

courses

education

of

speaker's

year

made

group,
over
130

railroads

also

were

somewhat

than three months earlier.

ness.

of

and

However, the
manufacturing, trade,
lower in November

industries.

agency added, payrolls in non-durable goods

activities

to
audiences of more
than 9,000, has as its objective the

public dissemination of investment
information.

Two With Jonathan
(Special to The Financial Chronicle)

ANGELES, Calif.—Melvip
and Harvey King have

Han berg

direct result of

000,000 in the annual
counted

for

half

the

in

employment

rate

the

Most of the month-to-month

industries

and

trades.

industries surged
the
ers

(8pecial to The Financial CiiroNicle) '

LOS ANGELES, Calif. — Roger
W. Racine has been added to the
staff of Bennett-Gladstone-Mann¬

ing Company, 8417 Beverly Blvd.




i
.

•

;
f

*

months of this year, new company

to

rise

Casualties

in

Fall to 53.7% of
Capacity in Christmas Day Week

Christmas
below

zine

week

sluggish
reported

The

weekly

than

automotive

dealers,

among

while

operations

steelmaking

of capacity

ou%

it has

expected

are

to be

post-holiday activity is likely to be

and

been

in

recent

"Steel" maga¬

years,

Monday of the current week.

on

■

production sag is more than seasonal, according to the
magazine of metalworking. Holiday shutdowns are ex¬
plants: and to extend over longer periods

more

than usual.
A

slow

first

half

for

anticipated.

is

1958

minimum stocks will depend on prompt

holding

Buyers

mill shipments.

An

up¬

half is predicted.

Production, this trade weekly stated, may go up next month,
capacity is likely to hold down operations percent¬
agewise. Rated capacity at the start of 1958 is expected to be
around
141,000,000 tons, 7,500,000 more than the figure at the
beginning of 1957. A disappointing fourth quarter prevented the
industry from registering a record-breaking production this year.

but enlarged

casting through October set
but the slump in the closing
bring the annual total to an estimated 113,000,000
tons, still the third best year on record./.
Output

a

of steel for

ingots

and

10-month high at 96,899,075 net tons,

two months will

expected to exceed mill ship¬
reduction of consumers' stocks.
Shipments of finished steel in the first 10 months came to 68,755,943 tons, nearly 400,000 more than the total for the like 1956
period. The record, 89,889,424 tons, was set in 1955.
Consumption

during

is

1957

ments substantially, resulting in a

Considering the recent sluggish auto demand, that industry's
steel intake the first 10 months of this year is surprisingly large.
Its

receipts

11,793,376

were

reported for the like
There is

tons,

from

up

1956 period.

the

tons

11,342.582

b

■""*

buyer's market in virtually all products, including

a

heavy plates and structurals, this trade magazine observed;* Only
beams
and

in firm demand,

are

are

wide heavy plates, wide flange

The situation makes for sharp competition

and line pipe.

prices

being watched by the industry, according to the

publication.

.

arithmetical

"Steel's"

of

premiums

a

Quotations

plates.

and

also easing.

are

,^'f*:'•>. *•;'

•,

last week

finished steel

net ton from $146.03, reflecting withdrawal

bars

on

composite on

the warehouse

at
/

,

y

-

Scrap prices last week rose for the first time since July.

The

publication's composite on the prime steelmaking grade. was at
$33.17 a gross ton, up $1.17 from the previous week,'or a sharp
rise in the East. A firmer tone is developing at some other points
despite the sag in ingot operations.
American

The

Iron

and

Institute

Steel

announced

that

the

companies, having; 96.1% of the steel¬
making; capacity for the entire industry, will be an average of
53.7% of capacity for the week beginning Dec. 23, 1957 equivalent
to 1,374,000 tons of ingot and steel for castings, as compared with
operating:

an

rate

actual rate of
The

68.1% of capacity, and 1,742,000 tons a week ago.

Christmas

the

drop to

holidays

are

lowest level since

1949.

expected to

see

the Independence

steel operations
Day holiday of

'

industry's ingot production rate for the weeks in 1957 is

The
based

on

annual capacity of 133,495,150 tons as of

For the

duction
was

steel

of

like week

month ago the rate

a

1,846,000 tons.

A

year

placed at 2,322,000 tons

or

was

Jan. 1, 1957.
72.1% and pro¬

the actual weekly production
94.3%.
ago

is not comparable because capacity is
higher than capacity in 1956. The percentage figures for 1956 are
The

operating

on

an

rate

annual capacity of 128,363,090 tons as of Jan. 1, 1956.

the past

over

Electric Output
48

transfer

government

Results for Latest Week Deferred

Hours Due

to

Christmas Day

Holiday

Official figures on electric kilowatt

in

concentrated

was

the

to twice their totals in

wholesaling increase occurred
and

formations

1956 period, a dif¬

Steel Ingot Output Rate Expected to

declared, has been a rise of $750,of unemployment benefits. This ac¬

Business casualties climbed slightly in November to 1,173,
reaching the highest level in six months. Up 17% from 999 last
year, failures were more numerous than in any other November
since 1939.
Concerns succuinbed at a rate of 56 per 10,000 listed
enterprises, edging up from 52 in the previous month and 49 a
year ago, but remaining well below the pre-war rate of 70 in 1939.

C399 Wilshire Boulevard.

Bennett-Gladstone Adds

the. lowest since the 9,256 listed in September, 1954.

126,122, from 129,987 for the like
ference of 3.0%.

based

decline

$1,500,000,000 rise in
payments from August to November.

joined the staff of Jonathan & Co.,

?

declined

three months, the department

addresses

LOS

was

For the first 11

come

their,

the

"

the

its members and the promotion of

Among

9,270,

same

dropped to $145.52

•

standing and cooperation between
the

9,749 for the

level

In

of new

11,251 recorded in October and of 4.9% from
month last year. The November count at

drop of 17.6% from
the

added.

■■

the volume

off in

perceptible falling

a

ported. It was the third month of decline since the record high
of August,
At the end of November, personal income was at a
seasonally-adjusted annual race of $345,500,000,000, the agency

ers

and

was

three items

Kidder, Peabody & Co., has been
President

There

sales thus far

of the mutual fund department of

elected

graphic regions and in both city and country ajreas.

turn in the second

jection is subject to change in the light of sales trends, the first
real signs of output softening are beginning to appear in the
auto

upswing.

Regional trends between October and November were mixed,
but failures exceeded 1956 levels in six of the nine major geo¬

expected to increase

are

Soto reverting to a short

mencing Jan. 15, 1958 will consist
of

car

reporting service noted

The

in

of

pected to involve

declared that while domestic-made

decline, sales of foreign

a

George

of

Board of Governors at

new

first

their

through

created

vacancy

nomination

the

Friday last.

on

"Ward's"

&

members of the Board.

of

5,300,000 domestic-built cars for entire 1958 compared with 5,800,000 in 1957 or a decline of 8.6%, "Ward's Automotive Reports"

Co!; Richard P. Gross, Stone &
Youngberg; George J. Otto, Irving
Lundborg & Co.; Scott H. Stewart,
&

Calvin

those

more

Members of the Board
Warren

Casualties

month-to-month

continued

Davis, Skaggs & Co.

W. Davis,

since April and one-third heavier than last
moderate size, $5,000 to $25,000 liabilities
excess of $100,000,
accounted principally for the

largest volume

year.

low level and totaled $28,844,804,

very

to $52,900,000 in November,

Dollar liabilities mounted to 12%

the

^

City alone, building permit values

the lowest for this
year and the smallest since the month of February, 1953.
It was
61.4% below the $74,795,675 for November, 1956.
at

Nominations were as follows:

ernors:

$501,328,013 in October.

For New York

on

1958.

15,

the

from

will

Election

sharply

down

was

previous month and from the corresponding month a
year ago, Dun & Bradstreet, Inc., reports.
The aggregate for 217
cities, including New York, was $380,238,992, the lowest for any
previous month since December, 1955. It represented a drop of
22.3% from $489,401,866 in November a year ago, and of 24.2%

the

of

permits

building

of

volume

November
from

Declines from 1956 were exceptional, appearing in
manufacturing industries, food and steel and in two
general merchandise.

two

business incorporations last month, Dun & Bradstreet, Inc., reports.
The number of new charters issued in November fell to 9,270, a

by
E.

Blum, Chairm a n

The
plates, structurals, rails

into consumer products.

goes

and the like.

change were
Ernest

buses.
than

Less

emphasis is on heavy products such as

Ex¬

announced

trucks and

roads,

construction, rail¬
Another large chunk is set aside for

into heavy industry such as

goes

armaments.

Coast

Stock

output

Thursday, December 26,1957

.

retail lines, food and

and

that some 30% of Russian

"The Iron Age" further comments

San

luxury

ideas on a production basis. This is a
States mills, operated for profit, cannot afford.

for trying out new

.

.

groups.

only

The State of Trade and Industry

Names siate

of

Chronicle

The Commercial arid. Financial

(2836)

machinery
October.

a

few

leather

and

Nearly all of

production for the week
ended Saturday, Dec. 21, 1957 will be deferred 48 hours due to
the Chirstmas Day holiday. For the period ended Dec. 14, 1957,,
output was estimated at 12,570,000,000 kwh., according to the
Edison Electric Institute.

Climbihg 3%
ended Dec. 14
occurred

was

over a year ago,

electric power output the week

at the highest level on

last January.

record. The previous high

Much of the week's increase reflected an

in lighting for Christmas displays.

upsurge

The most noticeable

year-to-year gains occurred in the Southeast and Pacific South¬
west.

building materials deal¬

eating

* and

drinking

Car

places

Loadings Drop 2.4% Below Preceding Week

■

accounted

General
record

for

the

builders

high tolls.

only
and

ively, but

a

heavy

construction

From November

Wholesaling casualties

in

noticeable1 increase

rose

most

a

year

retail

mortality.

ago,

1957, were

14,802

manufacturing and

Association

of American

and 21%

respect¬

moderate upward trend also prevailed in other func¬

Loadings for
cars,

a

freight

of- revenue

suffered

contractors

sharply, 28%

Loadings

cars

or

2.4%

for

the

week

ended

Dec.

14,

below the preceding week, the

Railroads

the week ended

reports.

Dec.

14,

decrease of 113,616 cars, or 15.9%

-

-

' ^

1957, totaled

'

603,036

below the correspond-

Volume

186

Number

5702

.

.

The Commercial and Financial Chronicle

.

'(2837)

ing 1956 week and

decrease of 106,096 cars, or 15% below the

a

ings due to cold weather, held declines to a minimum.
Trading
malting barley was slow, while feed barley was in good
at steady to firmer
prices.

in cash

.

Automotive Output Declined 4% Below the
v,

week's

output totaled

car

139,356

and

compared

with

145,503 (revised) in the previous week. The past week's
production total of cars and trucks amounted to 160,822 units, or
a
decrease of 7,317 units below that oi the preceding week's
output, states "Ward's."
Last week's car output declined below that of the
previous
week by 6,147 cars, while truck output
dropped by 1,170 vehicles
during the week. In the corresponding week last year 154,832
and 22,903 trucks were assembled.
Last week the agency reported there

cars

21,466 trucks made
States.
This compared with 22,636 in the previous
22,903 a year ago.
Canadian output last week was placed at 7,080 cars and 1,361
trucks.
In the previous week Dominion plants built 5,912 cars
and 1,147 trucks and for the comparable 1956 week
10,267 cars
were

in the United

and

week

and

1,824 trucks.

the

conservatism

domestic

ST.

flour

encouraged

concessions would be needed to create any material
expan¬

price

units

in

market was only routine,
by adequate balances of most
types and Washington advices
regarding price support plans. Mill
price reductions at mid-week failed to attract
any improvement
in flour
buying and it was generally believed that substantial
with

Passenger car production for the latest week ended Dec. 20,
1957, according to "Ward's Automotive Reports," declined by 4%
below the level of the preceding period.
Last

(Special to The Financial Chronicle)

Business

Preceding Week

...

With Smith, Moore

demand

corresponding week in 1955.

sion in. demand.

with
Olive

141,368 bags against
the

like date

a

143,372

year

and

changes.

a

to

the

action

taken

limiting exports in January to 230,000 bags,
amount shipped in both November
The domestic raw

and

by Columbia in
only 50% of the

or

December.

sugar market was

Ended

Dec.

14

Lumber shipments of 469 reporting mills in the week

Dec.

1957,

14,

National
orders
to

26%

Trade

1.6%

were

production,

according

In

production.

Unfilled

Production

orders

new

below

Barometer.

above

of stocks.

above and

3.0%

were

Lumber

the

4.8%

was

9.3%

were

the

the

to

period,

same

new

amounted

orders

shipments 5.2%

above;

above

ended

previous week and

Midwest

He

Business Failures Rose

CORAL
A.

Lago

Price &

market, hog values advanced quite
steers were slightly lower and lambs
steady. Receipts of cattle and calves last week were
slightly larger than in the preceding week, but were about 15%
less than in the
corresponding period last year. The sharp rise in
hog prices was due mostly to steady demand for
seasonally small

GABLES, Fla. —Peter
is

now

and were sharply above the

year

181

in

1955.

They moderately

exceeded the 249 of the comparable week of pre-war

Failures involving liabilities of
last week

235

in

and

similar

the

or more rose

to 242 from

sharply higher than the 175 of this size

were

week

$5,000

of

1956.

Casualties

among

small businesses

involving liabilities under $5,000, totalled 34, reflecting

James

Wilensky Adds

(Special to The Financial Chronicle)

MIAMI,
has

been

Fla. —Martin

I.

added

staff

week

a

previous week, but

$100,000

as

Most
the

toll

from

against 26
the

of

failed

with

in

liabilities

excess

of

week earlier.

a

week's

increase

136 from

to

rose

below the 39 of the comparable

were

Eighteen

ago.

year

114.

in

centered

retail

where

trade

Wholesaling failures dipped to 20

28, manufacturing to 47 from 54 and construction to. 47 from

More businesses failed in all industry and trade groups than a

48.

with the most noticeable increases in retailing and

year ago,

man¬

Three

nine

major geographical

during the week.

78 from
New

the

reported

Casualties in the Pacific States

rose

in¬
to

70, in the West North Central region to 13 from 8 and in

England to 13 from 11.

vailed

regions

in

five

regions, but

states.

Atlantic

Failures

Declines from the prior week pre¬

were

unchanged

exceeded

those

at 22
last

of

the

in

year

seven

regions, with the sharpest rises in the Middle Atlantic states, South
Atlantic states and West North Central region. Year-to-year declines

prevailed in the New England and Pacific states.

Wholesale Food Price Index Moved
The
The

wholesale

food

of the New York transit

period

ended
last

in

used

$6.15

a

a

year ago,

week earlier.
or

a

States

flour, wheat,
oil,

cost

tea,

were

The
of 31

lower prices

hams, bellies, butter, sugar,
and

Iambs.

Higher

cotton¬

wholesale

in

the

represents

total of

price

per

tables,

South Atlantic 0 to

daily

wholesale

week and finished

Inc.,

commodity

fluctuated

prices at the wholesale

price

index,

unevenly

South

slightly lower at 277.85

on

Dec. 16.

pared with 278.46 a week ago and with 277.33
At this time a year ago

a

the
This

considerable

a

was

with sharpest

volume

in

furniture

41

if you're feeling

lagged.

a

year

ago,

Central

and

Pacific

Coast

a

earlier

in

the

and

sportswear

year ago.

Interest in

crif you're feeling queerly)

~~~Y

Purchases of child¬

year ago.

chairs

and

Except for increased

Retailers reported substantial gains from the prior

buying of linens, draperies and floor coverings. Food

was

a

orders

slight rise in orders for women's
were

reported

Textile

trading

was

for

close to

that

Furniture wholesalers reported
outdoor

summer

case

men's

the

of

increased

3%

at

a

high level.

on a

Board's

1957

the four weeks ended Dec.

a

week, with

country-wide basis

like

week

period last

decrease of 5%

14, 1957

the

the

products and poultry.

index for the

the
a

cov¬

Vol¬

sluggish, but

was

buying declined during the

above

[if it's living you want most]

lighting equipment occurred.

noticeable decreases in dairy

Department store sales

1957

preceding week.

The buying of floor

sustained

was

in major appliances and television sets

rise in orders for lamps and

Reserve

some

Interest

but the call for upholstered

goods dipped somewhat.

erings, draperies and linens

Federal

and

moderate rise in orders for

a

chairs and tables,

food

wear

furnishings.

sluggish again last week.

For

a

as

taken from

ended

year.
was

.decline of 4%

Dec.

14,

In the pro-

reported.

For

reported.

was

registered above that of 1956.

vanced about
of

and oats

period Jan.

Retail trade

com¬

grains except wheat, registered declines

down a cent or more.

Cash grain markets

were

although losses were smaller than for the futures.
oped some strength on

also weaker

Wheat devel¬

trade reports of expected orders from

The

1957 to Dec.

sales volume

in

14,

1957

an

increase of 1%'

have
New

York

9% to 13% compared with the corresponding period

was

the subway

principally due to deferred purchases

as

a

result

Many

the

sibility of a price war with Canada

For

regarding disposal of farm

surpluses was reflected in lower prices in the Minneapolis, Kan¬
sas

City and Chicago grain markets.

Cash

corn

prices lost

some

and expectation of reduced market¬

increased

4%

above

that

of

preceding week, Dec. 7, 1957
the four

weeks

a

the

like

period

last

year.

decrease of 7%

was

reported.

ending Dec. 14, 1957

a

checlcuy yearly)

cancers can

thorough checkup, including
x

r£

a

chest x-ray for men and

a

pelvic examination for

women,

each and

year... no

decrease

of

4%

was

if]

it's important for you to have
a

In

registered. For the period of Jan. 1, 1957 to Dec. 14, 1957 the index
registered an increase of 1% above that of the
corresponding
period of 1956.

be cared

detected in time. That's why

strike.

According to the Federal Reserve Board's index, department
store sales in New York City for the weekly period ended
Dec. 14,
1957

a

City last week ad¬

improved showing in the latest week, according to trade

observers,
of

1,

1956.

Pakistan for hard Winter wheat hut apprehension over the pos¬

ground, but good demand



well

period ended

v

were

very

expanded.

the

week

a

sluggish.

was

was

month earlier.

corn

to

from

a

by

it stood at 300.04.

losses noted in soybeans, although

stock

4-4; West North

—3

rise

close to that of

children's clothing Was

Grain markets in Chicago were mostly lower the past week.

Nearby futures for all

Central

latest

compiled

during

similar

4-3; East North Central —2 to 4-2; Middle

ceding week, Dec. 7,

Bradstreet,

the

interest in refrigerators and television
sets, sales of major appli¬
ances

pound

Wholesale Commodity Price Index Eases in Latest Week
&

of

clothing advanced appreciably.
Despite a noticeable rise in sales of occasional

level.

The

dealers'

moderately exceeded that of

men's apparel

the

Dun

and

volume of retail trade in

to

West

Wholesale

the

that

ren's

foodstuffs and meats in general use and its chief func¬

tion Is to show the general trend of food

+5

was

and volume

most
sum

settling

primarily interested

were

buying of women's fashion accessories, lingerie

oats, beef, eggs, steers and hogs.

index

raw

rye,

potatoes

the

from 2% below to 2% higher than

was

to

and

lines and

gain of 2.9%.

corn,

cocoa,

and

States —4 to 0%.

ume

for

seed

-fl

Atlantic

peak

The latest fifure compared with

were

equalled

shoppers

slackened

cars

and Mountain —1

in

Aiding in the sharp decline the past week

week-end

according to spot estimates collected by Dun & Bradstreet, Inc.
Regional estimates varied from the comparable 1956 levels
by
the following percentages: New
England and East South Central

large part of the

dropped to $6.33, from the two and half

Christmas

dollar

Wednesday

on

by Dun & Brad-

year

17

total

There

for

touched

Wednesday and

on

year.

passenger

The

The index

Dec.

the

on

strike, retail trade jumped sharply in the

apparel, traditional gifts, linens and toys, while interest in most
appliances and furniture lagged. Sales of both new and

scattered

substantial rise recorded in the three preceding weeks.

of $6.45

Sharply in the Latest Week

buying climbed moderately during the week.

Sharply Lower

a

month earlier.

major

Past Week

street, Inc., fell sharply last week to cancel

Building.

778,000

a

Trade Volume Rose

week in the

price index, compiled

National Bank

The

Helped by clear weather

South

in

of

Joseph J. Wilensky & Co., Miami

this

crop

There
of

Klein

ginnings, which strengthened doubts that the
season would live up to the Dec.
1 official esti¬
Department of Agriculture estimated the prospective
1957 cotton yield as of Dec. 1 at
11,010,000 bales, a drop of

ufacturing.

creases

the

the latest report on

final

,

from the

to

prices fluctuated over a fairly wide range with all
contracts touching new highs for the season.
The rise
largely reflected buying stimulated by a bullish interpretation of

change

no

H.

Cotton

period

1939.

James

active

ended Dec. 19, from 269 in the preceding week, Dun & Bradstreet,

Casualties were noticeably higher than the 214 last

with

Company, Inc., 73 Merrick

receipts.

Commercial and industrial failures climbed to 276 in the week

Inc. reports.

Ex¬

Way.

lower as the trade awaited announcement
by the United
States Department of
Agriculture on estimated 1958 consump¬
tion and the quota allotments
based on the estimate.
In the Chicago livestock

bales from that indicated

Moderately the Past Week

Stock

formerly' with

was

(Special to The Financial Chronicle)

ing

mate.

13.2% below production for the like week of 1956.

H.

quiet with prices trend¬

sharply, while prices of

Shipments Fell 3.0% Below Output in Week

Henry

With James H. Price

continued to drop and totaled
week earlier and 287,836 bags on

cocoa

Firmness in the coffee market at the

ago.

attributed

was

—

Hill Brothers.

Warehouse stocks of

week-end

Mo.

Smith, Moore & Co., 509
Street, members of the New

York*

Cocoa prices, both cash and
futures, moved sharply lower
during the week, reflecting easiness in the London
market, com¬
mission house and trade
selling and limited spot manufacturer
demand.

LOUIS,

Whittemore has become associated

remained

Lumber

20

every

matter how

well you may feel.,

AMERICAN CANCER SOCIETY

The Commercial and Financial Chronicle

(2838)

30

.

.

Thursday, December 26.1957

.

* IN DICATES

Securities

Now

tire

• Alabama Power Co. (1/16)
20 filed $23,000,000 of* first

mortgage bonds due
1988. Proceeds—To finance construction program.
Un¬
derwriter — To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan,

Dec.

&

Stanley

Brothers;

Lehman

Co.;

The

First

Boston

Corp.; Blyth & Co., Inc.; Eastman Dillon, Union Securi¬
ties & Co. and Equitable Securities Corp. (jointly); Harriman

Ripley & Co. Inc. ana Goldman, Sachs & Co.
(jointly). Bids—To be received up to 11 a.m. (EST) on
Jan. 1(5, at Room 1600, 250 Park Ave., New York 17,

N. Y.

(Walter

Allen

Nov.

H.)

Co.,

Inc.

(letter of notification)

4

$150,000 of 10-year 6%
1967, to be offered to
(in units of $1,000). Proceeds
addition to present building.

unsecured debentures, due Nov. 1,

stockholders. Price—At par
—For construction of a new
Office—6210 Denton

Drive, Dallas, Texas.

Underwriter

—None.

Allstate Commercial Corp.,

16 filed 256,300

Sept.

New York

shares of class A

common

stock

(par one cent), at which 233,000 shares are to be sold
for account of the company and 23,300 shares for the
account of Ben Degaetano,

President of the underwriter.
Price—$1.50 per share. Proceeds—For working capital
to be used in realty financing activities. Underwriter—
Midland Securities, Inc., New York.
•

Hardware Corp.,

American

New Britain, Conn.
(par $12.50)
being offered in exchange for not to exceed 250,000,
shares of common stock of Savage Arms Corp. on the
Nov. 5 filed 125,000 shares of common stock

basis of one-half share of American

(plus cash) for each
Savage Arms share. The offer is conditioned upon ac¬
ceptance by holders of not less than 100,000 shares of
Savage Arms stock not later than Dec. 30, 1957. Under¬
writer—None.

Statement effective Dec.

9.

American Hospital & Supply Corp.
Nov. 29 (letter of notification) 1,300 shares of common
stock (par $4). Price—At market (around $41 per share).
Proceeds—For working capital. Office—2020

Evanston, 111. Underwriter
Inc., Chicago, 111.
•

American

—

Ridge Ave.,
Taylor, Rogers & Tracy,

Israeli

Paper Mills, Ltd. (1/6)
Oct. 29 filed 6,000,000 series B ordinary shares (par one
Israel pound per share). Price — $1 per share, payable
either in cash

or

in

in State of Israel bonds.

Proceeds—For

Registration
loan

bank

and

for

working capital.

Business —
brewing ma¬
Ave., New York.. Under¬
Burnside & Co., Inc., New York.

Manufactures and rents commercial coffee

Office—515

chines.

writer—Willis E.

Blacksmith

Madison

Shop Pastries

Inc., Rockport, Mass.

Sept. 17 (letter of notification) $100,000 of 6%% deben¬
tures dated Sept. 16, 1957 and due Sept. 15, 1972 and

capital stock

Office

Hadera, Israel.
Under¬
writer—Lee Higginson Corp., New York, on a best ef¬
program.

—

forts basis.

American Life & Casualty Insurance Co.
Dec. 3 filed 101,667 shares of common stock (par $1) to
be offered for subscription by common stockholders at
the rate of one new share for each two shares
held; un¬
subscribed shares to be offered to public. Price—$10 per
share. Proceeds—For capital and surplus accounts. Office

—Fargo, N. D.

Underwriter—None.

American Mutual Investment Co., Inc.
Dec. 17 filed 490,000 shares of capital stock.
Price—$10.20
per share. Proceeds—For investment in first trust notes,
second trust notes and construction loans.

Company

may

develop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg., Washington,
D.

C.

Underwriter

—

None.

Sheldon

Magazine,

1201

Highland Drive, Silver Spring, Md., is President.
American

Provident

Investors

Corp.
50,000,000 shares of common stock (par one
Price—$2 per share. Proceeds — For working
:apital and general corporate purposes.

Feb.

15 filed

:ent).

Office—Dallas,

Tex.

Underwriter—Peoples Securities Co., J. D. Grey,
Orleans, John S. Tanner, of Dallas, and C. L.
Fdmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.
if

New

Anita Cobre U. S. A.,
Inc., Phoenix, Ariz.
Sept. 30 filed 85,000 shares of common stock. Price—At
par ($3.75 per share). Proceeds—For investment in sub¬
sidiary arid working capital. Underwriter—Selected Se¬
curities, Inc., Phoenix, Ariz.

Artesian Water Co
Oct.

15

(letter

non-voting

of

class A
stock

Jan. 2,

2, 1957

common

and

stock

(no

3,404 shares of class A
par) being offered for

on

the basis of

one

new

stock for each eight shares

class A

common

1958.

of

share
com¬

stock; rights to expire

Price—$30 per share to stockholders; and
$32 to public. Proceeds—To purchase assets of Collins
Park

Water

Co.; Willow RunAYater Co. and Sedgely
Farms Water Plant; also to purchase
additional storage
tanks, water mains, etc. Office —501 Newport & Gas
Pike, Newport, Del.
Underwriter
Laird, Bissell &
Meeds, Wilmington, Del.
—

if Baldwin Laboratories, Inc.
Dec. 16 (letter of notification)
stock
new

to

be offered

shares

of

common

to

stockholders on the basis of
share for each share held.
Price—At par

share). Proceeds—For down payment

($100

on

one

per

land and build¬

ings remodeling and equipment. Office
2506 South
105th Ave., Omaha, Nev.
Underwriter—None.
—

Bamm

Corp., New York
(letter of notification) $300,000 of 6%
5-year
convertible sinking fund debentures
(subordinated) due

Nov.

29

Jan. 1, 1963 and 30,000 shares of

common stock (par one
cent) to be offered in units of $100 of debentures and 10

shares of stock. Price—S100



per

unit.

Proceeds—To

re¬

REVISED

ISSUE

Company (jointly); Lee Higginson Corp. and
&
Hutzler
(jointly); Eastman Dillon,
Union
Securities
&
Co.
and
Glore, Forgan & - Co.
(jointly); White, Weld & Co.; Lehman Brothers. Bids
—Expected to be received up to 11 a.m. (EST) on Jan.
7 at City Bank Farmers Trust Co., New York.
Bros.

Salomon

Commerce Oil

Refining Corp,
16 filed $25,000,000 of first mortgage bonds due
Sept. 1,-1968, $20,000,00 of subordinated debentures due

Brantly Helicopter Corp., Philadelphia, Pa.
(letter of notification) 21,818 shares of-common
stock (par 50 cents). Price—$13.75 per share.
Proceeds

Price—To

of

Nov. 25

Oct. 1, 1968 and 3,000,000 shares of common stock to be
offered in units as follows: SI,000 of bonds and 48 shares
of stock and $100 of debentures and nine shares of stock.

Offices
Maplewood Ave., Philadelphia 44, Pa., and Fred¬
erick, Okla. Underwriter—None. ■

—24

it Brunswick-Batke-Collender Co.
Dec. 20 filed 163,500 shares of common stock (no par)
be offered in exchange for outstanding common stock
of MacGregor Sport Produces, Inc. at rate of one share
of BBC stock for each share of MacGregor stock.
The
offer is subject to acceptance by holders of at least 90%
(147,150 shares) of outstanding MacGregor common

to

(which condition may be waived by BBC if offer is
accepted by at least 80% of outstanding MacGregor
stock). Underwriter—None.
Production

Cador

Corp., Far Hills, N. J.
Dec. 16 filed 1,680,000 shares of common stock (par five
cents), of which 1,600,000 shares are to be offered in
exchange for oil properties located in Oklahoma, Texas,
New Mexico, Louisiana, Kansas and elsewhere; the re¬
maining 80,000 shares are to be issued as commissions.
Underwriter—Cador, Inc., Far Hills, N. J.

be

supplied

by

amendment.

-

Proceeds

construct refinery. Underwriter—Lehman
York. Offering—Expected in January.

—For equipment, supplies and working capital.

Commercial
Oct.

Credit

Co.

.

filed

10

$50,000,000 senior notes due Nov. 1, 1977.
by amendment. Proceeds—To in¬
crease working capital.
Underwriters—The First Boston
Corp. and Kidder, Peabody & Co., both cf New York.
Price—To be supplied

Offering—Indefinitely postponed.
^Commonwealth

Edison

Dec. 19 filed $50,000,000 of

Jan.

(1/14)

tuna debentures due
Proceeds—For construction program. Un¬
be determined by competitive bidding.

1, 2008.

derwriter

Co.

sinking

To

—

Probable

bidders: Halsey, Stuart & Co. Inc.; The First
Corp.; Glore, Forgan & Co. Bids—To be received
to 10:30 a.m. (CST) on Jan. 14, 1958. at Room 1820,

Boston
up

72

West Adams

St., Chicago 90, 111.

if Concord Fund, Inc., Boston, Mass.
Dec. 16 filed 150,0C0 additional shares of
Price—At Market.

(par SI;.

if Connecticut Light & Power Co.
Dec.

common

(1/8)

filed $30,0u0,000 of first and rciunding bonds,
O, due Jan. 1, 1988. Price — To be supplied by

19

series

amendment.

Proceeds

construction

program.

tion. program.

Conn.; and Estabrook & Co., Boston, Mass.

Underwriter—To be determined by com¬
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; and Coffin & Burr, Inc. and
F. S. Moseley & Co; (jointly). Bids—Expected to be re¬
ceived up to 11:30 a.m. (EST) on Jan. 20.
Canada Mortgage Bonds, Ltd., Englewood, N. J.
Sept. 3 filed $1,000,000 of 8% mortgage bond trust cer¬
tificates.
Price
At par (in units of $250, $500 and
$1,000). Proceeds — For purchase of mortgage bonds.
Underwriter—None.

To

bank loans and for
—
Putnam & Co.,
Hartford, Conn.; Chas. W. Scranton & Co., New Haven,
—

repay

Underwriters

'

★ Consolidated Credit Corp.
Dec.

17

(letter

cumulative

of

notification)

shares

15,000

of

$1.40

sinking fund preferred, series A (par $20),

with warrants to purchase

15,000 shares of class B com¬
(par $1), to be offered in units of one pre¬

stock

mon

share

ferred

Proceeds

and

For

—

one

warrant.

Price

working capital.

Bldg., Charlotte, N

C.

—

Office

$20

per

unit.

316 Johnston

—

Underwriter—J. C. Wheat & Co.,

Richmond, Va.

Canadian Prospect

Ltd., Calgary, Canada
Sept. 27 filed 4,851,810 shares of common stock (par
162/s cents) to be offered in exchange for capital stock
of Canadian Export Gas Ltd. on the basis of 2Vz Cana¬
dian Prospect shares for each Canadian -Export share,
subject

to acceptance by holders of at least 80% of
Canadian Export shares outstanding. Underwriter—None.
Statement effective Nov. 4.
Caribe

Stores, Inc., Aguirre, Puerto Rico
Dec. 2 (letter of notification) 247,560 shares of common
stock (par 50 cents) to be offered for subscription by
common

stock

Proceeds—For investment.

Cambridge Electric Light Co. (1/20)
9 filed $4,500,000 of 30-year notes, series Br due
1988. Proceeds—To repay bank loans and for construc¬

petitive bidding.

To

—

Brothers, New

Dec.

stockholders.

Price—52

cents

ceeds—For general corporate purposes.

Formerly

Tybor Stores, Inc.
Co., Boston, Mass.

per

share.

Pro¬

Name Change—

Underwriter

Lerner

—

&

Continental

Mining & Oil Corp.
1
(letter of notification) 250,000 shares of

Dec. 9

stock

(par

10 cents).

Price—$1

Mortgage & Investment Corp.
Sept. 12 filed $5,000,000 of 20-year mortgage bonds and
500,000 shares of common stock (par five cents) to be

per

share.

comm.on

Proceeds—

For

mining expenses. Office—1500 Massachusetts Ave¬
nue, N. W., Washington. D. C.
l. Wolfe
Associates, 1511 K St., N.W., Washington, D. C.
Cooperative Grange League Feuerat»on, Inc.
27 filed $600,000 of 4% subordinated debentures
.

Sept.
due

Jan.

ferred

1966;

1,

stock

10,000 shares of 4%

$100;

par

and

150,000

cumulative

shares

of

pre¬

common

stock (par $5). Price—At principal amount or par value.
Proceeds—To finance inventory purchases, to make cap¬
ital loan advances to retail subsidiaries; to reduce bank

loans; and for working capital.

Central

Office

—

Ithaca, N. Y.

Underwriter—None.
Cubacor Explorers,
Oct. 28

Ltd.
(letter of notification) 600,000 shares of common
$1-Canadian). Price—50 cents per share-U. S.
Proceeds
For exploration and drilling costs.
Suite 607, 320 Bay St., Toronto, Ont., Canada.

offered in units of $100 of bonds and 10 shares of stock.

stock (par

Price—$100.50 per unit. Proceeds—For purchase of first
mortgages or to make first mortgage loans and for con¬
struction business.
Office—Miami Beach, Fla.
Under¬

funds.

writer—Aetna
Date

Securities

Corp., New York.

Offering—

indefinite.

.

—

Office

—

Underwriter—Stratford
way,
•

Champion Industries, Inc.

Dalton

Nov.

27

Finance,

filed

bentures

rials and working capital.

short-term

Uranium Corp.

Chess

May 14 (letter of notification) 600,000 shares of common
(par $1—Canadian). Price—50 cents per share.
(U. S. funds). Proceeds—For exploration costs, etc. Of¬
fice—5616 Park Ave., Montreal, Canada. UnderwriterJean R. Veditz Co., Inc., 160
Broadway, New York.
Offering—Expected at any time.

stock

Price—At

market.

Underwriter—Glick

•

Columbus

(par 10£).
stockholders.

Proceeds—To
&

selling
Co., Inc., New York.
•

Statement

Electronics

mortgage bonds due
Proceeds—To reduce bank loans. Underwriter—To

bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Dillon, Read & Co. Inc. and

Underwriter

—

McDonald, Holman &

DeLuxe

Check

Printers, Inc.

Aug. 28 (letter of notification) 25,000 shares of common
stock (par $1) to be offered to employees and present

Price—$11.80

per

share. -Proceeds—To

ac¬

quire

new machinery and equipment.
Office — 530. N.
Wheeler St., St. Paul 4, Minn.
Underwriter—None. "- '

* Detrex Chemical Industries Inc.
11

(letter of notification) 5,000 shares of common
to be issued to selected employees upon
exercise of options. Price—At 85% of market value'on
date option is granted. Proceeds—For general
corporate

$1).

1988.

debt.

share). Proceeds—To selling stockholders. Underwriter
Herrin Co., Seattle, Wash.

Columbus & Southern Ohio Electric Co.
Dec. 17 filed $14 000.000 of first
be determined by competitive

(12/30)

Daybreak Uranium, Inc., Opportunity, Wash..
filed 631,925 shares of common stock (par'10
Price — At market (approximately 53 cents per

stock

(1/7)

Md.

suoorainaieu

May 7
cents).

Corp.
Nov. 13 (letter of notification) 110,000 shares of class A
common
stock (par 10 cents).
Price—$2.50 per share.
Proceeds
For working capital. Office—1010 Sawmill
River Road, Yonkers, N. Y.
Underwriters—McLaughlin,
Cryan & Co. and Mortimer B. Burnside & Co. Both of
New York, N. Y.
—

Mt. Ranier,

Jan.

Co., Inc., New York.

Dec.

•

Inc.,

$500,000 of 7%

due

stockholders.

Colonial Aircraft Corp., Sanford, Me.
July 5 filed 248,132 shares of common stock

Co., Inc., 135 Broad¬

10-year de¬
2, 1968 (with warrants attached).
Price—At par (in denominations of $100 each).
Pro¬
ceeds—For expansion, making of loans and to reduce

(letter of notification) 75,000 shares of common
stock (par 10 cents).
Price—$4 per share. Proceeds—
For development and engineering expenses, raw mate¬
Business — Jalousies, storm
windows, screens, etc., Office — 22 Jericho Turnpike,
Mineola, N. Y. Underwriter—Allstate Securities Inc., 80
Wall St., New York.

Securities

New York.

Nov. 7

effective Aug. 10.

700

ITEMS

Dec.

common and class A common stockhold¬

of record Dec.

mon

notification)

common

subscription by
ers

of

PREVIOUS

The Ohio

(par $1) to be offered
in units of one $50 debenture and 20 shares of capital
stock.
Price—$90 per unit. Proceeds—To retire mort¬
gage notes and for working capital. Underwriter—Mann
& Gould, Salem, Mass.
shares

40,000

—

expansion

AD D JTION S

SINCE
•

(par $2)

purposes.-

32, Mich.

Office—14331

Woodrow Wilson -Ave., Detroit

Underwriter—None.

Disc, Inc., Washington, D. C*

-

Oct. 10 filed 400,000 shares of class A common stock (par

Price—$2.50

share. Proceeds—For investment.
Business—Purchase and development of real
property,
and acquisition of stock of business enterprises. Under¬
writer—None.
Irving Lichtman is President and Board
Chairman.

per

Volume

136

Number 5702

.

.

The Commercial and Financial Chronicle

.

(2839)

31

\

Doctors' Motels, Inc., Kansas City, Kan.
Oct. 25 filed 500,000 shares of common
stock,

426,497 shares
are to

to

are

Ex-Cell-O Corp., Detroit, Mich.

of which
publicly, 39,568 shares

offered

be

Nov.

exchange for $432,055 outstanding 6%
are to be issued as a stock divi¬
dend and 30,850 shares are presently
outstanding. Price
—At par ($15 per share).
Proceeds—For construction
and operation of motels and to repay bank loans.
Un¬
derwriter—None.
Dow

Chemical

25

filed

issuable

shares

conversion

upon

of

stock

common

which

by

the

of

$4,000,000

The

Dobeckmun

Co., the liability

of

assumed by Bow Chemical Co. as of Aug.
31,
These
debentures are held by:, three insurance

i..'

companies.

Duraloy Co.,
Nov.

■

;

modernization

and

improvements.

Burnside

B.

&

Co.,
Expected today (Dec. 26).
Durox

of

Minnesota,

Inc.,

Inc.,

New

Electro Precision

11.

(letter of notification) 60,000 shares of common
$1). Price—$4 per share. Proceeds—For office

etc.

Underwriter—Nunn-Groves Co., Little Rock. Ark.

inventory,- working capital,

NEW

January
Wisconsin

Southern

(Offering

to

Milwaukee

ISSUE

Co.,

Inc.)

Co., Inc

5309,232

i

Ga.

Office—450 Bishop St., N. W.,
Atlanta,
Underwriter—None.

'•'

_

—

3395

S.

Bannock St.,

American

6

(Lee

$6,000,000

Common

Minnesota

$14,000,000

Sachs

Kidder,

Co.;

&

Peabody

-

Co.;

(Bids

(Putnam

Co.)

to

Michigan

Shell

11

Transport &
(Offering

Equip. Trust Ctfs.

to

no

shares

$3,975,000

invited)

be

&

-Preferred

65,000

Co.)

Pittsburgh & Lake Erie Ry.—
(Bids

Chicago, Rock Island & Pacific RR.
CST)

Trust Ctfs.

Power

Pacific

Power

&

Barney

to

Co.)

Bonds

Co.

(Bids 8:30 a.m. PST)

(Bids 8:30

Ripley

a.m.

Co.

&

11

$10,000,000

(Bids to

be

Inc.)

11

EST)

janiarry 20

(Bids

Notes

underwritten in U. S. by Morgan
Co.) 7,602,285 shares

Stanley

Iowa

Public

Service
(Bids

to

10:30

a.m.

EST)

(Bids

to

(Bids
-

Pacific Gas

&

to

be

be

8:30

a.m.




PST)

(Wednesday)

for general

homes.

Appalachian

(Bids

Business—Financing

McDonough,

N.

Y.

Underwriter

of
—

Forest Laboratories, Inc.
Aug. 28 filed 200,000 shares of capital stock (par
cents). Price—$2.50 per share. Proceeds—For sales

10

pro¬

motion

of

company's products, working capital, addi¬
tional inventory and accounts
receivable, for research
and development and for other
general corporate pur¬
poses. Office—Brooklyn, N. Y.
Underwriters—Alfred L.
Powell Co., New York; and H. Carroll &
Co., Denver,
Colo. Offering—Expected in near future.

due Jan.

Marion, Ohio.

1,537,500 shares of

ceeds—To

B stock

(no

(par $1;.

Attorney General of the United
Underwriter—To be determined by competitive

par)
Pro¬

Stales.

oidding.

ton

Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers
Glore, Forgan & Co. (jointly). Bids —Had been
scheduled to be received up to 3:45
p.m. (EDT) on May
13 at Room
654, 101 Indiana

and

General Automatics Corp.,
Atlanta, Ga.
May 23 (letter of notification) 100,000 shares of common
(par $1). Price—$2 per share. Proceeds—To~es-

tablish production facilities for
manufacture and

assem¬

Atlanta, Ga. Underwriters—Armstrong &

W.,
Atlanta,

Co.,

Ga.

General Credit, Inc.,
Washington, D. C.
Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971, with detachable

tures and 40 warrants.
Price—$500 per unit. Proceeds—
For expansion and working
capital. Underwriter—None
named.
Offering to be made through selected dealers.
Application is still pending with SEC.

General

Parking, Inc.

June 18 (letter of
notification) 240,000 shares of common
stock (par $1). Price—$1.25 per share.
Proceeds—To re¬
tire outstanding debt; for expansion of

subsidiary corfor working capital.
Office—c/o Edwin
5312 Glenwood Ave., Youngstown, Ohio.
Underwriter—L. L. LaFortune & Co., Las
Vegas, Nev.
poratiop

and

Clements,

Genie

Aug. 8

Craft Corp.
(letter of notification)
debentures

and

$100,000 of 10-year 6%

120,000

shares

of

common

(par 10 cents)

to be offered in units of
debenture and 20 shares of common stock.

one

$50

Price—$100

unit.

Proceeds—To discharge short term
obligations;
purchase merchandise inventory; and for
working cap¬
ital.
Office — 1022 18st St., N.
W., Washington, D. C.

Underwriter—Whitney & Co., Inc., Washington, D. C.
Gold Seal

Oct.

25

Dairy Products Corp.

filed

175,000 shares of class A stock (par 10
cents)
of which
15,000 shares are to be reserved
for
prior offer to employees.
Price
To
be
sup¬
plied by amendment. Proceeds—To acquire
of

Kulka

outstanding

Electric

Manufacturing Co., Inc.

Office
Underwriter—Amos Treat & Co., Inc.,
Offering—Indefinitely postponed.

Great

to

$35,000,000

Divide Oil Corp.
(letter of notification) 300,000 shares of common
stock (par 40 cents).
Price—$1 per share. Proceeds—
To pay balance on oil and
gas properties, and unsecured
notes and

Debentures

$9,000,000

Great

Oct.

(Thursday)
EST)

$21,500,000

(Tuesday)

Power

to be invited)

Co
$25,000,000

for drilling and working
capital. Office—207
Bldg., Salt Lake City, Utah. Underwriter—
Birkenmayer & Co., Denver, Colo.

Newhouse

Bonds

3

common

the

Oct. 11

(Tuesday)

invited)

a.m.

10, 1958. Office — 381 West Center St.,
Underwriter—None.

General Aniline & Film
Corp., New York
Jan. 14 filed 426,988 shares of common A
stock

Bonds

$30,000,000

20

Electric

—

Philipson & Co., Utica, N. Y.

New York.

Georgia Power Co
(Bids 11

corporate purposes.

Office

—Elizabeth, N. J.

(Monday)

(Wednesday)

be

June

Bonds
$75,000,000

of 6% sub¬
ordinated debentures due Jan.
1, 1968 and 12,500 shares
common stock
(par $1) to be offered in units
of a $100 debenture and five
shares of stock. Price—
$100 per unit. Proceeds—To repay $90,000 of notes and

stock

Bonds

to

Leases, Inc. (1/6)
of notification) $250,000

(letter

—

Debens.

$30,000,000

Iowa Illinois Gas & Electric Co

$4,500,000

Electric Co

(Bids

4

invited)

March

(Tuesday)
Quincy RR.--Equip. Tr. Ctfs.
invited)

Bonds

invited) $10,000,000

March 5

$8,500,000

January 21
Chicago, Burlington &

Bonds

Ohio Edison Co..

(Bias

(Bids

Co

$15,000,000

Co

be

Bonds

Utilities Co

29

Office—

of class A

per

EST) $30,000,000

26

March

(Offering to stockholders—to be

West Texas

$29,000,000

(Tuesday)

(Bids to be invited)

Common

Co

Petroleum

Ford Home

Nov.

stock

Bonds

Service

noon

February

(Monday)

; Light Co
(Bids lx:30 a.m. EST) $4,o00,000

Dutch

(Monday)

Cleveland Electric Illuminating Co

$23,000,000

Cambridge Elect
Royal

$8,000,000

Southern New England Telephone Co.

Bonds
a.m.

EST)

$40,000,000

Co

(Bids

•

F.

$10,000,000

(Thursday)

invited)

March 3

Power

-Bonds, Etc.

February 25

Debentures

(Thursday)

January 16
Alabama

$7,500,000

(Wednesday)

EST)

a.m.

Central Illinois Public

Preferred

PST)

a.m.

Virginia Pulp & Paper Co..
(Hairiman

--Preferred

invited)

$15,000,000

Light Co

Pacific Power &

West

$5,000,000 ■

$3,450,000

invited)

Light

&

$12,600,000

Pennsylvania Electric Co.

-Equip. Trust Ctfs.
be

Common

shares—

Bonds

(Bids

amend¬

Price—Also to be supplied by amendment. (Pro¬
ceeds—To finance additional
exploration work on tun¬

convertible

$50,000,000

CST)

a.m.

RR

Bids

York

Co
11

of com¬

ment).

to purchase 160,000 shares of
participating
preference stock, to be offered in units of $500 of deben¬

(Tuesday)

February 24

Bonds Debentures

January 15 (Wednesday)
Iowa Power & Light Co
—Preferred

i

be

February 20
Gulf

Fluorspar Corp. of America
$1,400,000 aggregate market value
mon stock
(number of shares to be supplied by
Nov. 12 filed

warrants

(Tuesday)

January 14

(Smith,

New

Northern Illinois Gas Co

Bonds & Debens.

Commonwealth Edison Co,

Pacific

of

underwriting)

(Bids

Missouri

Bonds

(Friday)

(Bids to be invited)

Peabody & Co.; Blyth & Co., inc.; White, "V^eld & Co.;
and Laurence M. Marks & Co.) $30,000,000

10:30

Co

Trading Co., Ltd

to

purchase
options. Price—To public, $12 per share. Proceeds—For
expansion and other corporate purposes. Underwriter—
None.

$720,000,000

$25,000,000

States Utilities Co

$4,620,000

Washington Water Power Co

(Bids

EST)

February 19

•

Equip.

(Kidder

about

(Thursday)

February 18
Gulf

First

National Life Insurance
Co., Phoenix, Ariz.
July 29 filed 106,500 shares of common stock
(par $4),
of which
90,000 shares are to be offered publicly and
16,500 shares to employees pursuant to stock

bly of controls; and for other corporate purposes. Ad¬
dress—c/o Positronic Corp., 2572 Ridgemore Road, N.

(Thursday)

January 9

noon

shares

(Friday)

Electric

a.m.

holders

(Bids

(Bids

340.000

underwriting)

February 13
Indiana

—

Bruce

stock

.Common
EST)

a.m.

February 14
Common

&

Bonds
$12,000,000

stockholders—no

Simonds & Co.) $200,000

Pvoney

Co

invited)

Telephone & Telegraph Co.. .Debentures

to

(Bids

Peninsular Metal Products Corp
C.

be

Preferred

National Finance Co.

(Wm.

11

Whitmore,

Ave., N. W., Washington 25,

(Offering

Co.) $750,000

&

to

—

D. C„ but bidding has been
postponed.

(Tuesday)

Co.____

(Bids

830,000,000
^

,'Baker,

Texas Utilities

Bonds

Finance Co
(Baker, Simond*

Equip. Trust Ctfs.

$24,500,000

Light & Power Co
&

National

EST)

noon

$3,435,000

American

Co.; Chas. W. Scranton & Co.; and Estabrook

&

invited)

February 7

—Bonds

Chicago, Burlington & Quincy RR
Connecticut

Equip. Trust Ctfs.

be

Central Power & Light
(Bids

Underwriter

Probable bidders: Blyth &
Co., Inc., and The First Bos¬

(Bids to be invited) $5,700,000

and

(Wednesday)

Januarys

$5,000,000

RR

to

properties.

Co., Washington, D. C.

and

(Thursday)

Great Northern Ry

115,000 shares

Piper, Jaffray & Hopwood)

Brothers)

■

&

$4,140,000

-Preferred

February 4

Mining & Manufacturing Co.—Common

(Goldman,

Ohio
(Bids

(Tuesday)
EST)

a.m.

EST)

January 23
&

purchase
&

notes

Bonds
$10,000,000

Equip. Trust Ctfs.

noon

(Lehman
\

Baltimore

Columbus & Southern Ohio Electric Co._—Bonds
11

(Wednesday)

invited)

Portland Gas & Coke Co

Ltd.^-Series B ord.

Ford Home Leases, Inc
Debentures &
(PMlip&on & Co.) $250,000

January 7

be

(Bids

filed

★ Fulfillment Corp. of America
11 (letter .of
notification) $77,000 of 13% subordi¬
nated notes due Jan. 9, 1959 to be offered
to stockhold¬
ers.
Price—At par. Proceeds—To
pay 5% subordinated

Iowa Power & Light Co...
to

27

Dec.

,

(Monday)

Higginson Corp.)

(Bids

Englewood, Colo. Underwriter
Underwriters, Inc., Englewood, Colo.

CALENDAR

:

January

Insurance Co.

Aug. 26 (letter of notification) 100,000 shares of common
stock (par $1). Price
$3 per share. Proceeds
For
capital and surplus and for first year's deficit. Office—

...Common

~

American Israeli Paper Mills,

Fire

Norfolk & Western Ry

stocifliolders—underwritten- by the
Harley, Havden & Co.; and Bell & Farrell.
Inc.

working capital.

(Bids

common

Co.;

—

$500,000

(Thursday)

Gas

(letter of notification) 33,335 shares of common
Price — $3 per share. Proceeds
For

(par $1).

January 22

—Debentures

3

Dec. 16

stock
'

(Monday)

Finance, Inc.—
&

Jefferson

St., Lynchburg, Va.
Underwriter—Whitney & Co., Inc., Washington, D. C.

First International

laboratory equipment;

Holman

(letter of notification) 5,000 shares of common
Price—$6.67 per share.
Proceeds—To selling
Office—922

Leaseback Corp.,
Washington, D. C.
500,000 shares of class A common stock
(par five cents). Price — $5 per share. Proceeds — To

Nov.

ing properties and to provide working capital.
Portland, Ore.

.

and

(McDonald,

$3)

ic Feather Craft, Inc.

Corp., Arkadelphia, Ark.

December 30

stock.

York. Offering-—

stock (par

Dalton

6

stockholder.

Denver, Colo.

Statement effective Dec.

Oct. 30

Nov.

Underwriter—Mor¬

Sept. 23 filed 750,UUO shares of common stock (par $1).
Price—$2 per share. Proceeds—For capital expenditures
and
working capital.
Business — Building material.
Underwriter—American Underwriters, Inc., Englewood,
Colo.

(par

Famous Virginia Foods
Corp.

69,000 shares^ofvcommon stock (par SI).
be supplied by amendment.
Proceeds—For

Price—To
timer

Scottdale, Pa.

r.

filed

12

stock

(letter of notification) 60,000 shares of common
stock (par $1) and
$180,000 of 6% redeemable debentures
maturing Dec. 15, 1967.
Price—Of stock, $2 per share;
of
debentures, at par. Proceeds—For exploring and de¬
veloping mineral properties with objective of producing
expanded shale. Office—728-29 Symes
Bldg., Denver 2,
Colo.
Underwriter—Minor, Mee & Co., Albuquerque,
N. M.

was

'1957.

First

common

Nov. 26

(par $5),
4% sub¬

ordinated convertible debentures due June 1, 1980, orig¬

inally issued

88,000 shares of
in

Expanded Shale Products Inc.

Co.

84.121

filed

exchange for common stock of Bryant
Chucking Grinder Co. of Springfield, Va., at rate of
four-tenths of an Ex-Cell-O share for each full
Bryant
share. Offer will become effective
upon acceptance by
holders of not less than
209,000 shares (95%) of all com¬
mon stock of
Bryant outstanding.
Underwriter—None.

be offered in

debentures, 3,085 shares

Nov.

25

to be offered

Bonds

Northern Life Insurance Co.

7

(letter of notification) 44,400 shares of common
stock
(par $1). Price—-$6.75 per share. Proceeds—For
capital stock and unassigned surplus Office — 119 W.
Rudisill Blvd., Fort Wayne, Ind
Underwriter—North¬
western Investment Inc., Fort Wavne. Tnd.

Continued

on

page

32

Financial Chronicle

The Commercial and

32

Thursday, December 26,1957

.

v,

★ Group Securities, Inc.
Dec. 16 filed (bv amendment)

"1

,

1,500.000 additional shares

one cent). Price—At market.
ceeds—For investment. Office—Jersey City, N. J.

of

stock"(par

capital

Pro¬

Baltimore, Md.
shares of common stock, of which
200,000 shares are to be publicly offered and the remain¬
ing 100,000 shares reserved for issuance upon exercise
of warrants which are to be sold at 25 cents per warrant
Guardian Insurance Corp.,

incorporators, management, and/or direc¬
tors. Price—$10 fser share. Proceeds—For working cap¬
ital and general corporate purposes. Underwriter—None.
to organizers,

Hartford Electric Light Co.

Oct. 8 filed $2,400,000

of 3% secured debentures,

series

A, due Aug. 1, 1967, being offered in exchange for 3%
first and general mortgage bonds, series D, due May 1,
1982. of Connecticut Power Co. on a par-for-par basis
The exchange offer expires on Dec. 27.
Underwriter
—None.
v
'

★ Hofmann Industries, Inc., Sinking Spring, Pa.
20 filed 227,500 shares of common stock (par 2o
cents) to be offered in exchange for outstanding common
shares of Van Dorn Iron Works Co. Underwriter—None.
Dec.

Home Owners Life

Insurance Co.

Underwriter—None.

Lauderdale, Fla.

Horlac

(letter of notification) 300,000 shares of com¬
Price—At par ($1 per share). Proceeds—

Nov.

20

mon

stock.

To

loan, to purchase equipment and machinery
caoital. Office—1551-A Eglinton Ave.

repay

end for working

West, Toronto 10, Ont., Canada.
& Co., Inc., Buffalo, N. Y

Underwriter—D'Amico

Montfcello Assdclrtes, Inc.

shares of common
•tock.
Proceeds — For
capital expenditures, including construction of motel,
roadside restaurant and gas station. Business—Has been
processing and selling of gravel. Office—203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,
of notification) 300,000
Price—At par ($1 per share).

Philadelphia, Pa.

—

Underwriter — To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co., Inc.: Harriman Ripley & Co. Inc.; The First
Boston Corp.; Eastman Dillon. Union Securities & Co.
Bids—Tentatively expected to be received up to 11 a.m.
(EST.) on Feb. 13, 1958.

construction program.

Staple & Machine Co.

Oct. 14 (letter of notification) 20,000 shares of 6% cumu¬
lative preferred stock of which 10,000 shares are to be

public and the remainder to stockholders
of record Oct. 10, 1957 in exchange for seven shares of
common for each share of preferred.
Both subscription
and tenders for exchange must be received on or before

America, Inc.

Proceeds—To be invested in small loans
mortgage on home properties. Office

secured by second

Charles Hersh-

Motel Co. of Roanoke, Inc.,

of common
Proceeds—
For purchase of land, construction and working capital.
Underwriter—Southeastern Securities Corp., New York.

stock

(par 40 cents).

stock and

offered in units of one $100 bond and two
stock.
Price—$101 per unit.
Proceeds—To

to be

1933,

of

shares

construct

chain

of

operate, through Italian corporations, a
motels in Italy.
Office—Silver Spring, Md.
and

Fund, Inc. (N. Y.)
May 9 filed 5,000 units of undivided interests in Munic¬
ipal Investment Trust Fund, Series A. Price—At market.
Proceeds—For investment.
Sponsor—Ira Haupt & Co.,
Municipal Investment Trust

New York.
Nassau

Fund, Princeton, N. J.

May 8 filed 250,000 shares of common stock. Price—At
market.
Proceeds—For investment.
Office—10 Nassau
St., Princeton, N. J. Investment
Hoisington, Inc., same address.
National

Biochemicals,

Advisor

—

Harland W.

Inc.

(letter of notification) 100,000 shares of com¬
mon stock (par 10 cents).
Price—$3 per share. Proceeds
—For cost of plant and inventory and for general cor¬
Sept. 10

Nov. 30, 1957.

porate purposes. Office—Room 202 Houston Title Bldg.,
Houston, Tex. Underwriter—Scott Taylor & Co., Inc..
New York, N. Y.

Price—At par ($10 per share). Proceeds
Office—497 Union Trpst Build¬

working capital.
ing. Pittsburgh 19, Pa.

Underwriter—None.

Dec. 23 filed 50,000 shares of

Bowlero, Inc., Cleveland, O.
$900,000 of 5% 10-year debenture bonds,
9,000 shares of 4% non-cumulative preferred stock (par

Barney & Co., New York.

$100) and 15,000 shares of common stock (par $10) to be
offered in units of $9,000 of bonds, 90 shares of preferred
stock and 150 shares of common stock.
Price—$19,500

★ Iowa Power & Light Co.

if Iowa Power & Light Co.
filed

$10,000,000

of first;

mortgage

be received on Jan. 22.

filed

Proceeds—For erection and operation of two

unit.

per

(1 '22)

bonds, due
1988. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.,
Inc.; Kidder, Peabody & Co.; White, Weld & Co.; The
First Boston Corp.; Equitable Securities Corp. Bids—To
23

4

bowling sports centers.

Underwriter—None.

William N.

Skirball is President.

•tock

to be offered in units of a $1,000
debenture and 10 shares of stock, or a $100 debenture
•nd one share of stock. Price—Par for debenture, plus
$2 per share for each 10 shares of Stock. Proceeds—For
construction of a shopping center and other capital im¬
provements; for retirement of present preferred shares;
•nd for working capital, etc. Underwriter—None.
(par 20 cents)

if National Finance Co., Detroit, Mich. (1/8)
75,000 shares of 6 *4% cumulative preferred
stock (with warrants to purchase 112,500 shares of com¬
mon stock) and 40,000 shares of common stock
(par $1),
the latter to be sold for account of five selling stock¬

Nov. 25

€tock
For

common

(par five cents). Price—$2 per share. Proceeds—
capital
expenditures,
equipment,
repayment
of

loans and

ting

working capital. Business—Welding and cut¬
equipment.
Office — 253 Boulevard, Hasbrouck

Heights, N. J.
wood, N. J.

Underwriter—Pierre Piossini Co., West-

ir Langendorf United Bakeries, Inc.
16 (letter of notification) 2,200 shares of common
stock (par $1). Price—$22 per share.
Proceeds—To go
to Stanley S. Langendorf, the selling stockholder.
Of¬
fice—1160 McAllister St., San Francisco, Calif.
Under¬
writer—Walston & Co., Inc., San Francisco, Calif.

Dec.

holders.
Price
Of preferred stock, at par ($10 pershare); and of common stock, at $5 per share. Proceeds
working capital. Underwriter—Baker, Simonds &
Co., Detroit, Mich.

13

(letter of notification)

1.785 shares of

common

stock (no pgr; to be offered for subscription by common
stockholders at the rate of one new share for each
60.4364

shares

held.

Price—$28

For additions and improvements.

St., Lorain, Ohio.

share. Proceeds—
Office—203 West 9th

per

Underwriter—None.




National Lithium

Corp., New York

Oil & Gas

;»

Ventures—First: 1958

;• ;:

\

Fund, Ltd. and

Oil & Gas Ventures—Second 1958 Fund,

Madison, N. J.

Ltd.,

;

Oct. 29 filed $2,500,000

of participations in capital as lim¬
partnership interests to be offered in $25J)00 mini¬
amounts.
Proceeds—For acquisition, exploration,
of oil properties.
Underwriter — Mineral Projects

ited

mum

etc.

f

Mineral

Oil &

Operations, lncr
'
(letter of notification) 100,000 shares of comnion
stock (par $1).
Price—$2.50 per share. Proceeds—For
development of oil and mineral properties. Office—208
Wright Bldg., Tulsa, Okla. Underwriter—Universal Se¬
curities Co., 201 Enterprise Bldg., Tulsa 3, Okla.

Nov. 4

ticipating non-cumulative preferred stock.

Price — At
share). Proceeds — For working capital;
inventory and general expenses. Office—228 Ensign St.,
Fort Morgan, Colo. Underwriter—None.
($1

par

per

Life Co.,

Seattle, Wash..

July 22 filed 15,825 shares of class A stock (par $10) and
3,165 shares of common stock (par $10) to be offered in*
units of one common share and three class A shares.
Price—$260

unit.

per

—
For working capital
Underwriter—None.

Proceeds

and other corporate purposes.

Pacific Petroleums,

Ltd.

Oct. 11 filed 1,603.998 shares of common stock
of which 1,538,993 shares are to be offered in
for

(par $1),
exchange
outstanding Merrill Petroleums, Ltd. common stock

the

at

of

rate

Pacific

one

share

for each

two

Merrill

shares; the remaining 15,000 shares are to be issuable
upon exercise of presently outstanding options granted
by Merrill, which options will be assumed by Pacific.
Office—Calgary, Alberta, Canada. Underwriter—None.
effective

Statement

Nov.

13.

&

Light Co. (1/15)
Dec. 13 filed $15,000,000 first mortgage bonds due 1988.
Proceeds—To repay bank loans and for construction pro¬
gram.
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Eastman Dillon, Union Securities & Co., and Kidder,
Pacific

Peabody

Power

Co.

Lehman

(jointly);

Co.

&
&

Stearns

and

Salomon

Bros.

Brothers;

& Hutzler

/ Bear
(jointly);

Blyth & Co., Inc. and White, Weld & Co, (jointly). Bids
—Expected to be received up to 8 a.m. (PST) on Jan. 15.
Pacific Power & Light Co.
Dec.

stock

filed

13

100.000

(par $100).

Underwriter—To

Probable

ding.

Kidder,

Peabody

Securities

Co.

&

shares

(1/15)
of

cumulative

preferred

Proceeds—For construction program.
be determined by competitive bid¬

Halsey, Stuart & Co. Inc.;
& Co., and Eastman Dillon, Union
(jointly): Blyth & Co., Inc.; Smith,

bidders:

Barney & Co., and White, Weld & Co. (jointly).

Bids—
Tentatively expected to be received up to 8 a.m. (PST)
on

Jan.

15.

Pan American Tool Co.,

Houston, Texas

stock (par $1),
3,000 shares. Price
—To be supplied by amendment.
Proceeds — To dis¬
charge trade accounts payable/to buy tools and equip¬
ment and for working capital. Underwriter—rNone.

Oct.

filed

28

165,000 shares

of common

to be offered in blocks of not less than

shares of common stock (par one
cent). Price—$1.25 per share.
Proceeds—For acquisi¬
tion of properties; for ore testing program; for assess¬
ment work on the Yellowknife properties; and for coat
of

a

equipment, etc. Under¬
New York. Statement ex¬

concentration plant, mining

pected

to

be amended.

National

Nov.

27

•

Pearce-Simpson, Inc., Miami, Fla.
7 filed 415,450 shares of common

Mortgage Discount Corp., Waco, Texas
10,000 shares of class A preferred stock

filed

stock

Nov.

(par 50

Price—$1 per share." Proceeds—For capital ex¬

cents).

Feb. 19 filed 3,120,000

penditures; to retire loans and notes outstanding; and
for
inventories, tools, and other corporate purposes.
Underwriter—Christopher Corp., Miami, Fla. Statement
effective Dec. 17.
•

Peninsular Metal Products Corp.

Dec. 16 filed

(1/8)

65,000 shares of 6% cumulative convertible

preferred stock. Price—To be supplied by amendment.
Proceeds—Together with funds from sale of $318,000 5%
subordinated debentures, to purchase all of the out¬

(no par) and 5,000 shares of class B preferred stock (no

standing

Proceeds—For investment
notes, for reserve for real estate develop¬
ment and
general corporate purposes.
Underwriter—
Proctor Elder Securities Co., Ltd., Fort Worth, Texas.

Nankervis Co.,

par).

Price—$100

per

share.

in real estate

shares of capital stock of George L.
Detroit, Mich., for $15.75 per share, or a
total of $1,645,875. Office—Ferndale, Mich. Underwriter
—Wm. C. Roney & Co., Detroit, Mich.
1
i
104,500

Peoples
Natural

Gas

Pipeline Co. of America
$40,000,000 of first mortgage pipeline bonds
due 1977.
Price—To be supplied by amendment. Pro¬
ceeds—To reduce bank loans.
Underwriters — Dillon,

Nov. 19 filed

Read

&

Co.

of New York.

Lorain Telephone Co., Lorain, Ohio

Dec.

•

—For

writer—-Gearhart & Otis, Inc.,

Koeller Air

Products, Inc.
(letter of notification) 150,000 shares of

For investment.

Dec. 16 filed

—

Inc., Washington, D. C.

Janaf,

July 30 filed $10,000,000 of 5^-8% sinking fund deben¬
tures due Aug. 1, 1972 and 100,000 shares of common

100,000 additional shares
Price—At market. Proceeds—

(by amendment)

capital stock (par $1).

National

Dec.

(1/15)

cumulative preferred stock
(par $100). Price—To be supplied by amendment. Pro¬
ceeds—For construction program.
Underwriter—Smith,

Dec.

of

Old American

shares of class A common

income debenture bonds due July 2,

$1,000,000 of 8%

20 filed

Dec.

of Italy

11 filed 20,000

Dec.

;

if Nucleonics Chemistry & Electronics Shares, Inc.

Dec.

Roanoke, Va.

(letter of notification) 60,000 shares
Price—$5 per share.

Nov. 18

because of market condi¬

postponed

;

★ Oil Salvage, Inc.
13 (letter cf notification) 75,000 shares of 5% par¬

is President.

offered to the

—For

ing—Temporarily
tions.

Co., Ltd., Madison, N. J. Statement effective Dec. 13.

Aug. 19 ffled $1,000,000 of participation units in second
mortgages of real estate to be offered for public sale in
units of $100, plus a sales commission of $10 per unit

man

^

100,000 shares of common stock (par 25
cents). Price—To be supplied by amendment. Proceeds
—To prepay indebtedness to Norden-Ketay Corp.,. to
purchase additional equipment and for working capital.
Underwriter—Havden, Stone & Co., New Yoric. Offer¬
Sept. 20 filed

Feb. 18 (letter

Underwriter—None.

★ Indiana & Michigan Electric Co. (2/13)
Dec. 20 filed S25.000.000 of first mortgage bonds due
1988. Proceeds
For reduction of bank loans and for

International

Manufacturing Co. (1/7)
shares of common stock (no par).
Pricje — To be supplied by amendment. Proceeds — To
Estate of John C. Dwan, a former director of company.
Underwriters—Goldman, Sachs & Co. and Kidder, Peabody & Co., both of New York; and Piper, Jaffray &
Hopwood, Minneapolis, Minn.

to the company.

Vice-President and

Nuclear Science & Engineering Corp.

...

,

10 filed 115.000

Dec.

-

Treasurer.

Minnesota Mining &

Motel Corp.

Ltd.

Mines,

President, and Marcus T. Baumann,

Employees.

Plan for

—Springfield, Mass. Underwriter—None.

III.
June 27 filed 100,000 shares of capital stock (par $1).
Price—At market.
Proceeds—For investment. Distribator and Investment Manager—Horace Mann Investors,
Inc., Des Moines, la., of which Charles F. Martin is also
President.
Office—216 E. Monroe St., Springfield, 111.
Inc., Springfield,

Mann Fund,

Horace

to

Mortgage Clubs of

shares of class A common stock to be
offered to the public at $5 per share and 116,366 shares
of class B common stock to be offered to stockholders
at $6 per share at the rate of two new shares for each
five shares held. Proceeds—For working capital. Office
Nov. 1 filed 50,000

—Fort

Minneapolis-Honeywell Regulator Co.
19 iiled 20.000 shares of common stock (par S1.50).
be issued pursuant to the company's Stock Purchase

stock

common

Price—$5 per share. Proceeds—For working
capital and other corporate purposes.
Underwriter—
None.
Sales to be made through Eugene M. Rosenson,

mining expenses. Office—Sidney Bldg., Kellogg.
Idaho, Malcolm C. Brown is President. UnderwriterStandard Securities Corp., Spokane, Wash., and Kellogg,

if

of class B

shares

300,000

(par $1).

—For

Dec.

filed

Nov. .27

June 3 (letter of

Idaho.

Aug. 16 filed 300,000

Phoenix, Ariz.

North American Finance Co.,

Kellogg, Idaho
notification) 800,000 shares of common
stock.; Price—At par (17^ cents per share). Proceeds
Mascot Mines, Inc.,

31

Continued from page

★

.

.

(2840)

Halsey, Stuart & Co. Inc.,
Offering—Temporarily postponed.

Inc.

and

both

Nichols, Inc., Exeter, N. H.
Nov. 14 filed 25,000 shares of common stock (no
Price—$27 per share. Proceeds—To repair short

par).

term
Business — Sells
hatching eggs and day-old chicks. Underwriter—None.
George E„ Coleman, Jr., is President.

bank

loans

and

for working capital.

Oct.

28

Security

Investment Co.

filed

1,000,000 preorganization subscriptions to
preorganization
subscriptions to class B non-voting common stock to be

class A voting common stock and 250,000
offered

in units

of four class A

shares

and

one

class B

purchaser agreeing to donate each class B
share to the Peoples Security Foundation for Christian

share,

the

Education, to be incorporated as a non-profit corpora¬
tion.
Price—$2 per share. Proceeds — For capital and
surplus to finance a proposed insurance company to be
named

Office

Peoples Security & Endowment Co. of America.
—

Montgomery, Ala.

Patterson

is

President.

Underwriter

—

None.

T. J.

Volume

186

Number 5702

.

.

The Commercial and

.

Financial Chronicle

(2841)
•

Permian

Pipeline Co.
Nov. 22 filed 826,500 shares of common
stock (par $1)
being offered for subscription by common stockholders

at

of

rate

record

—$5

one

share

new

for each

two

shares

held

of

Dec.

per

12, 1957; rights to expire on Dec. 31. Price
share. Proceeds—Together with other
funds, to

advances from Northern Natural Gas
Co., the
parent, and for construction program. Underwriter—None
repay

•

Pittsburgh Brewing Co., Pittsburgh, Pa.
Nov. 15 filed $5,646,750 of 5%
sinking fund income suboridnated debentures due Oct.
31, 1992; 112.935 shares of
common stock
(par $1); and 451,740 warrants to pur¬
chase 451,740 additional shares of
common stock to be
offered in units of
$50 of debentures, one common share
and warrants topurchase- ftmr common shares to be
offered in exchange for each
outstanding share of

pre-'

ferred stock (par $25) plus accrued
dividends. Purpose
or reduce
preferred dividend arrearages.

—To eliminate

Underwriter—None.
'

,

Statement effective Dec. 13.

;

'

Pittsburgh-Des Moines

:

Steel

Co.

Nov. 29

(letter of notification) 5,750 shares of common
stock (no par), of which 1.920
shares are to be offered

for account of

selling stockholder, and 3.830 shares for

Price—$52 per share.

company.
steel

Proceeds—To purchase
Island. Pittsburgh

inventory items. Office—Neville
25, Pa. Underwriter—None.

Pleasant Valley Oil &
Mining Corp.
Sept. 30 (letter of notification) 2,000,000 shares of
mon

stock.

Price—At par

com¬

Rocky Mountain Quarter Racing Association
(letter of notification) 300,000 shares of common

Polytronic Research, Inc.
Nov. 4 (letter of notification)
80,000 shares of common
stock (par 10 cents).
Price—$2.50 per share. Proceeds—
For equipment and
research,

development'program

and

working capital. Office—4130 Howard Ave.,
Kensing¬
ton, Md. Underwriters—First Washington Corp. and The
Stanford Corp.;-both of
Washington, D. C. Change
Name—Formerly Acme Tool & Engineering Corp,
Ponce Hotel
12

filed

of

shares

of

6%

preferred

of

one

$126
debt

preferred share and 26

per

unit.

Proceeds

—

common

shares.

Price

—

Together with

proceeds of
financing, will be used to purchase hotel site, con¬

struction, furnishing and equipment of the hotel. Un¬
derwriter :— Compania Financiera de
Inversiones, Inc.,
San Juan, P. R.
Professional Life & Casualty
Co., Champaign, III.
Dec. 16 filed 120,000 shares of common
stock.
Price—
$15 per share. Proceeds—To increase
capital and surplus.
Underwriter—None.
Public

>

Savings Life Insurance Co.
Nov. 29 filed 113,000 shares of common
stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—To Public Savings Insurance
Co., the selling stock¬
holder.

Office—Charleston, S. C.

Underwriter—None.

Pyramid Mining & Metal Corp.
Oct. 24 (letter of
notification) 236,000 shares of common
stock (par $1). Price—$1.25
per share.
Proceeds—For
mining expenses. Office
508 Great Plains Life
Bldg.,
Lubbock, Tex. Underwriter—Sterling Securities Co., Inc.,
Odessa, Tex.
'

July 22 (letter of notification)
11,022 shares of common
stock. Prices—At par
($1 per share)..Proceeds—For work¬
ing capital. Office—705 South Husband
St., Stillwater,
Okla.

Underwriter—Richard

B. Burns Securities

Agency,

Stillwater, Okla.

★ Royal Dutch Petroleum Co.
(1/20)
20 filed
7,602,285 shares of .capital stock to be of¬
fered for subscription
by stockholders of record Jan. 17,1958 on the basis of one new
share for each eight shares
held; rights to expire on-Fab. 10. Price—To be
supplied
by amendment. Proceeds—To be made
available to the
Royal-Shell Group of companies for their
capital and
exploration

expenditure

programs.

Underwriter—Mor¬

Stanley & Co., New York, heads list of American

underwriters.
Rule (C. F.) Construction Co.
Sept. 13 filed 127,289 shares of common stock
(par $10).
Price—$13 per share. Proceeds—To retire
outstanding
loans and for
working capital and investment in addi¬
tional equipment.
Office—Nashville, Tenn. Underwriter

—None.

Corp., St. Louis, Mo.

—

Woods, St. Louis, Mo.

Offering—Indefinitely

postponed.

Schering Corp., Bloomfield, N. J.
19

filed

278,983

shares

vertible preferred stock
common

stock

stock of White

(par

of

5%

cumulative

con¬

(par $30) and 418,475 shares of

$1)

to

be

issued

in

exchange

for

Laboratories, Inc. (which is to be merged

Schering

Corp. effective Sept. 19, 1957) on the
share of preferred stock and
IV2 shades of
each White class A or class B com¬
held.
Underwriter—None.

one

stock for

share

Sentinel Security Life Insurance Co.
Nov. 27 filed 5,000 shares of common
stock (par $10).
Price—To be supplied
by amendment.
Proceeds—rFor
working capital. Office—Salt Lake City, Utah. Under¬
writer—None.
*
:
■

Shacron Oil Corp.
Sept. 11 (letter of notification)

40,000 shares of

common

(par $1) being offered for subscription
by stock¬
holders of record Nov.
18, 1957 (with an oversubscription
privilege); rights to expire on Dec. 31. Price—$1.25 per
share to stockholders;
$1.37'% to public. Proceeds—For
incidental to drilling of oil wells.
Office—
14, 1500 Massachusetts Ave., N. W.,
Washington,
Underwriter—None.

expenses

Shaleen Oil &
Dec. 9

stock

Mining Co.

(letter of notification) 2,000,000 shares of common
(par one cent). Price—10 cents per share. Pro¬

ceeds—For

mining

Office—c/o Bruce Kistler,
Counsel, 450 Denver Club Bldg., Denver, Colo. Under¬
expenses.

writer—None.

nium

concentrating pilor mill. Office—295 Madison Ave.,
Underwriter—None.

New York 17, N. Y.
;
,

Reichhold

Chemicals, Inc.

ic "Shell" Transport & Trading Co., Ltd. (2/14)
20 filed a maximum of
$12,600,000 of New York
Shares (representing a like amount of
ordinary shares)
be

Temporarily

postponed.

.

Research
Oct.

7

.

•

•.

Instrument Corp.

(letter

convertible

.

of

notification)

debentures

and

$125,000 of 10-year 10%

-12,500

shares

of

unit.
inven¬

per

equipment,., working capital and
' S. -E.
Powell; Blvd., Portland, Ore.
Underwriter—Campbell & Robbins, Inc., Portland, Ore.
Resolute Bay Trading
Co., Ltd.
tory.

Office—7962

r

Oct. 29

(letter of notification) 30,000 shares of common
stock. Price—At par ($5 per
share). Proceeds—For work¬
ing capital, etc; Business—Purchase and sale of commo¬
dities.
Office—St. John,-Ny B.,. Canada. Underwriter—

Irving Weis & Co., New York.
,

Resolite Corp.,

Zelienople, Pa.

Dec. 6 filed 20,000 shares of

common

stock to be offered

for subscription by stockholders of record
Dee. 1, 1957
in the ratio of 3*2 new shares for each 10
shares held;
unsubscribed shares to be offered to
public. Price—$10

share.Proceeds—To pay'$100,000 outstanding obli¬
gations and for improvement and rehabilitation of
plant
and facilities.
Business—Fiberglass panels. Underwriter
—None. 7.7..7- : ' ( -•
per

Roach

(Hal) Productions
Aug. 8 filed 375,000 shares of common stock
(par $1).
Price—$3 per share. Proceeds—For expansion of
duction of filmed television commercials and
for

capital.

pro¬

working

Business—Produces films for television.
—Culver Citv. Calif.Underwriter—S. D Fuller
New York. Statement effective Nov.
14.
poned.

Office
8r

Co..

Offering—Post¬
Not expected until after Jan.
1,1958.




Underwriter—None in the United States.

Shop Rite Foods, Inc.
2 (letter of
notification) 9,400 shares of common
(par $5). Price—$13.50 per share. Proceeds—For

Dec.

stock

general corporate purposes. Office—617 Truman, N.
E.,
Albuquerque, N. M. Underwriters—The First Southwest
Co., Dallas, Tex., and Minor, Mee & Co., Albuquerque,

N. M.

'•

four shares held and to holders of
options on the basis
common stock;' unsubscribed shares to be offered
certain employees and officers. Price—$2
per share.
Proceeds—To pay outstanding obligations to

Ogdent Corpt.

Underwriter—None.
Tax

Exempt Bond Fund, Inc., Washington, D. C»

June 20 filed 40,000 shares of common stock.
Price—$29
per share.. Proceeds — For investment.
Underwriter-

Equitable Securities Corp., Nashville, Tenn. Offeringup pending passing of necessary
legislation by
Congress.
Held

*

Taylor Instrument Companies

Oct. 1 filed 99,195 shares of common stock
(par $10)
be offered for
subscription by common stockholders
the

basis

of

Price—To

by

for

four

each

amendment.

shares

Proceeds

to
oo

held.

To

—

Corp., Dallas, Texas
6<<,408 shares of common stock, of which
377,408 shares are to be issued for the account of selling
stockholders and the remaining 300,000 shares issued
from time to time in exchange for oil and gas properties.:
Of the 377,408 shares,
132,558 shares, 61,392 shares and
47,606 shares, respectively, are to be issued as dividends
to stockholders of Texolina Oil
Co., Mountain Valley Oil
Corp. and Trigg Drilling Co.; while 57,239 are to be of-:
fered immediately to the
public, while the balance of
78,613 shares are to be similarly offered in the near
future. Price—To be supplied by amendment. Proceeds
—To selling stockholders. Underwriter—None.
9

filed

Texam Oil Corp., San /^ntonio, Texas
May 29 filed 300,000 shares of common stock (par $J),
be offered for subscription
by common stockholders

to

on

basis of two

a

—To

be

new

shares for each share held. Pries

supplied by amendment.

other

Proceeds—To

repay

corporate purposes.

Underwriter—None.

^ Town & Country Securities Corp.
Dec. 20 filed 250,000 shares of common stock (no par).
Price—$4 per share.
Proceeds — For working capital.
Office—Fort Wayne, Ind. Underwriter—None.
Trans-America

Uranium

Mining Corp.

Nov. 6 filed 3,000v000 shares of common stock (par one
mill). Price—25 cents per share. Proceeds—For land

acquisition, exploratorjr work, working capital, reserves,
and other corporate purposes.
fred E. Owens of Waterloo,

Underwriter—None.

la.,

Trask

Al¬

is President.

Manufacturing Co.

5

(letter of notification) 15,000 shares of common
stock (par $5). Price — $4.50 per share. Proceeds —For
working capital and payment of current liabilities. Ad¬

dress—Wrightsboro section, 3 miles north of Wilmington,
Underwriter
Selected Investments, Wilmington,

N. C.

—

N. C.

Ulrich

Manufacturing Co.

Sept. 24 filed $600,000 of 6% sinking fund debenture*
and 30,000 shares of class A common stock (par
$1) to
be offered in units of $500 of debentures and 25 shares of
stock. Price—To be supplied by amendment. Proceeds—
To reduce bank loans, to repay all or part of an out¬
standing 5% term loan and/or provide additional work¬
ing capital. Office—Roanoke, 111. Underwriter—Whit*
& Co., St. Louis, Mo., on a best-efforts basis.

if Ultra Ray Drilling & Mining Co.,
Dec.

11

stock.

For

share of stock

and

one

$50

bond.

Price—$52.65
construction, ownership and
management of shopping centers, luxury hotels and other
commercial property. Underwriter — None. Offering
to be made through Akiba
Zilberberg, 5857 Phillips Ave.,
Pittsburgh 19, Pa., the company's President.
unit.

Proceeds

—

For

Simplicity Pattern Co. Inc.
Oct. 10 filed 155,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—To two
selling stockholders. Underwriter—Merrill Lynch, Pierce,
Fenner

share

Tekoil

Dec.

mon

Shopping Centers Corp., Pittsburgh, Pa.
17 filed 50,000 shares of common stock
(par $2.50)
$2,500,000 of debenture bonds to be offered in units
one

new

corporate purposes. Office — Rochester, N. Y*
Underwriter—The First Boston Corp., New York. Offer¬
ing—Indefinitely postponed.

Dec.

per

one

be supplied

and

of

option to purchase four shares at

Ogden
to

Great Falls,

Mont.

common

stock (no par) to be offered in units of one
$100 debenture
and ten shares of common stock.
Price—$200

Proceeds—For

for

—

Oct. 10 filed

200,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
expansion program and working capital. Underwriter—
Blyth & Co., Inc., New York. Offering —

offered

subscription by holders of ordinary
shares, including stock represented by New York shares
of record Jan. 17, 1958. This
represents 10% of the total
offering by the company, which 10% is to be offered for
subscription by American residents. Price—To be sup¬
plied by amendment. Proceeds
For exploration pro¬
grams.

(par

Syntex Corp. (Republic of Panama)
July 24 filed 1,165,750 shares of common stock (par $2)
to be offered for
subscription by common stockholder*
of Ogden Corp. on the basis of one new
share for each

Dec.

Dec.

to

stock

common

Proceeds—For explora¬

tion and exploitation of
oil, gas and sulphur properties.
Underwriter—T. J. Campbell Investment Co., Inc., Hous¬

stock

D. C.

share.

indebtedness, for acquisition and exploration of oil and
gas leases, for drilling and completion of wells, and for

•

Suite

per

general

St. Louis Insurance

mon

Price—$1

retire short term bank loans and for
working capital and

Statement effective Nov. 20.

March 2-7 filed 1,250 shares of
class C cumulative pre¬
ferred stock (par
$57). Price—$97 per share. Proceeds
—To R. M. Realty
Co., who is the selling stockholder.
Underwriter
Yates, Heitner &

Sept.

cent).

of one share for each

Dec.

gan

one

ton, Tex.

Records, Inc.

—

Ramapo Uranium Corp. (New York)
Aug. 13 filed 125,000 shares of common stock (par one
cent). Price—$5 per share. Proceeds—For exploration
and development of properties and
completion of a ura¬

Oct.

re¬

,

Rose

stock, series A (par $100), 12,410 shares of 6% cumula¬
(par $100) and 364,000
$1) to be offered in units

Proceeds—To

Tenn.

basis of

tive preferred stock, series AA
shares of common stock (par

share).

—

common

cumulative

per

outstnding indebtedness. Office
Littleton, Colo.
Underwriter—R. B. Ford Co., Windover
Road, Memphis,

with

Corp., San Juan, P. R.

1,590

Price—At par ($1

pay

—

—

Surinam Corp., Houston, Tex.
21 filed 10,000,000 shares of

Oct. 31
stock.

(five cents per

share). Pro¬
ceeds
For .geological
studies, reserve for contingent
liability, for machinery and equipment and other re¬
serves.
Office
616 Judge
Bldg., Salt Lake City, Utah.
Underwriter—Steven Randall & Co.,
Inc., New York.

Dec.

33

Basin

&

Beane,

New York. Offering

postponed.

Sovereign Resources,

—

Indefinitely
/

.

Inc.

Nov. 19 (letter of notification)
1,500 shares of 7% cumu¬
preferred stock. Price—At par ($100 per share).

(letter

mining

of notification)

Price—At
expenses.

199,700 shares of com¬
($l per share). Proceeds—
Underwriter—None.
par

Union of South Africa

Sept.

12 filed

due Oct.

$15,000,000

10-year external loan bond*
Price—To be supplied by amendment.

1, 1967.

Proceeds—For transportation development program. Un¬

derwriter—Dillon, Read & Co. Inc., New York.
—Postponed temporarily. '
:
7
Uhtted

States

Coconut

Fiber

Offering
7;

•

Corp.

Sept. 30 filed 735,000 shares of common stock (par $1).
Price—$4 pfer share./ Proceeds—For expansion program
and other corporate purposes.
Office—Washington, D.
Underwriter — Southeastern Securities

C.
Corp., New York.

if United States Plywood Corp.
Dec.

Proceeds—For construction, payment of promissory note

16 filed $1,000,000 of
Participations in the com¬
pany's Employees' Stock Purchase Plan, together with

and

38,000 shares of

lative

working capital. Office—3309 Winthrop St., Fort
Worth, Tex. Underwriter—Reilly, Hoffman & Sweeney,
Inc., New York, N. Y. Offering—Expected this week.
Stuart-Hall Co., Inc., Kansas
City, Mo.
27 filed $650,000 of 20-year 6%
convertible

Nov.

bentures

jdue Dec. 15, 1977.

Price—At

par

United

(in denom¬

inations of $1,000 each). Proceeds—For
working capital
and to reduce bank loans.
Underwriter—White & Co.,
St. Louis, Mo.

which may be

purchased

States

Sulphur Corp.
1,500,000 shares of common stock (par ono
cent). Price—$1 per share. Proceeds—For plant rental,
etc.; to retire corporate notes; for core drilling; for
working capital; and for other exploration and developOct.

de¬

common stock

pursuant to said plan.

8 filed

Continued

on

page

34

34

The Commercial and Financial Chronicle

(2842)

Continued

from

Office

worik.

ment

page

Western

33

Houston,

Texas.

Underwriter

—

None.

Universal
Oct.

Drilling Co.,

Inc., New Orleans, La.

400,000 shares of class

filed

31

A

stock

common

(par $1). Price—$5.50 per share. Proceeds—To pay ob¬
ligations incurred and to be incurred in connection with
construction and equipping of a drilling barge; and for

working capital and other corporate purposes.
writer—Kohlmeyer & Co., New Orleans, La.

Under-

vey, and for working capital.
Office — 1205 Phillips
Square, Montreal, Canada Underwriter—Jean R. Vedit2
Co., Inc., New York. Offering—Expected at any time/

Dec. 12 filed 19,327 shares of common

of America, Portland, Ore.

bert Griswold of

10

share; and 30,000 shares at $1 per share. Proceeds—
For mining expenses. Office—233 Petroleum Club Bldg.,
Denver
•

2, Colo.

Underwriter—None.,

Allsteel

Verson

Press Co.,

scription by employees.

Materials

filed

12

par

($5

per

1957 at the rate of one

(Donald W.)

shares of

6Y4%

pre¬

American
Nov. 20 it

Telephone & Telegraph Co.

convertible

an

stock

(par $1) to be issued
exchange for stock of Union Chemical & Materials
Corp. and Lambert Bros., Inc. under an agreement of
become effective Dec. 31,

(1,429,960 shares) and 1.1 shares of Vulcan 6Y4% pre¬
ferred (114,396.8 shares); each of the 1,092,639 shares of
Union 5% preferred stock outstanding will be converted
of

Vulcan

5%%

preferred

(54,632

shares); and each of the 1,200 common shares of Lam¬
bert will be converted into 486% shares of Vulcan com¬
(583,600 shares) and 72% shares of Vulcan 5% pre¬
ferred (87,000 shares).
Vulcan will also issue 376,670
mon

shares of its

common

of

Rockwood

Slag Products, Inc.
Prior to the
Lambert owned, and as a result of the
merger Vulcan will own, the remaining 50% stock in¬
terest in Chattanooga Rock and the
remaining 33%%
above

Underwriter—None.

debentures for

Oct.

(letter of notification) 4,708 shares of
stock (no par) to be offered for
subscription by
on

the basis of one

new

2, it

•

common

common

share for each two

shares held.

Price—$20 per share. Proceeds—For con¬
struction of new telephone
plant. Office — 47-49 Main
St., Warwick, N. Y. Underwriter—None.

are

basis

each

nine

of

$100

shares

expected to be mailed

principal

held.
on

or

Oct.

Sub¬

about

(6/3)

(letter of notification) 50,000 shares of common
(par $1) of which 34,280 shares are to be offered
publicly at $1.20 per share and 15,720 shares are to be
stock

Co., plans to issue and sell
$25,000,000 of first mortgage bonds. Proceeds—To repay
bank loans and for construction program.
Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Kuhn, Loeb & Co. and Eastman Dillon, Union
Securities & Co. (jointly); Harriman Ripley & Co. Inc.
Bids—Tentatively expected to be received on June 3.

Underwriter—Wagner

&

will

11

New

RR.

1988

and

1983.
To

Power Co.

(1/9)
due
due

Price—To be supplied
by amendment. Proceeds—
retire a like amount of
short-term notes.
Under-

^;ruitfrs,^,™r' and
Peabody

White, Weld & Co.
New

& Co., Blyth & Co., Inc.,

Laurence M. Marks & Co., all of

York.

* West Texas Utilities Co.

(1/20)

Dec. 23 filed
$8,500,000 of first mortgage bonds due 1988.
Proceeds—To repay loans and for
construction program
Underwriter—To be determined
by competitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb
& Co. and Lehman Brothers
(jointly); The First Boston
Coip ; Blyth & Co., Inc., Harriman
Ripley & Co. Ine

and Salomon Bros. & Hutzler
rities Corp.;

(jointly): Equitable Secu¬
Kidder, Peabody & Co.; Merrill Lynch,
Pierce, Fenner & Beane. Bids—Expected to be
received
up to 10:30 a.m. (EST) on Jan. 20.

Pec-23
1, 1978.
—r or

$40,000,000 of 20-year

expansion program.

Jcy & Co.

Jan.

Proceeds

Underwriter—Harriman

Rin-

Inc., New York.

Western Chrome
Nov. 4 (letter of
stock.

(1/15)

Inc.

notification) 300,000 shares

Price—At par ($1
mining expenses.
Office
Bank Bldg., Salt Lake
General Securities,

per
—

share).

Suite

of

common

Proceeds

901-902

—

City, Utah. Underwriter—Utah
Inc., Salt Lake City, Utah.




¬

/

announced

was

of first

re¬

Inc.
RR.

(1/9)

are

Halsey, Stuart & Co/Inc.; Salomon Bros. & Hutzler.
Cincinnati Gas & Electric Co.
it

8

reported

was

/

/

plans

company

in

1958

to

sell:

$15,000,000 of first mortgage bonds. Proceeds—
repay bank loans and for construction program.

To

Underwriter—To be determined by competitive bidding./
Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan
Stanley & Co. and W. E. Hutton & Co. (jointly); Blyth
&

Co.

Inc.

The First Boston Corp. (jointly); Mer¬
Pierce, Fenner & Beane and Lehman Bros/
(jointly); Eastman Dillon, Union Securities- & Co. and
White, Weld & Co. (jointly),.
% .* •
and

rill Lynch,

by the

Nov.

company

at

2

Wall

St.,

the

was

announced that company expects to issue

Cleveland

Columbus

reported the bank plans to offer to its
18,750 additional shares of common stock
a one-for-five basis.
Price—$25 per share.

£

California
Nov.

20,
the

in

was

on

22

Power

Co.

Peabody

new

construction.

Underwriter—

Boston

reported

was

(EST)

Southern

about 250,000

Feb. 25.

011

Ohio

Electric Co.

plans to issue and sell

company

shares of

Dillon, Read

—

& Co.

stock.

common

Inc.

and The

Co/of

New

Under¬

Ohio

Co.

;'?•

:

York, <lnc.

-

■

Central Illinois Public Service Co.

bidding. Probable bid¬

Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. (jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly);
Salomon Bros. & Hutzler; Blair &
Co., Inc.; Blyth & Co.,
Inc., Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly).
Bids—Expected Feb. 25.

Light Co.

(2/4)

reported company plans to issue and sell

$12,000,000 of first mortgage bonds.

Proceeds—To re.pay

*//
.

$15,000,000

was

reported company plans to issue and sell

of first mortgage bonds due 1988..!,
To repay bank loans and for construction
Underwriter—To be determined by competi¬

Proceeds

—

tive

bidding. Probable bidders:
Halsey, Stuart & Co.
Inc.; The First Boston Corp.; White, Weld & Co.; Glore,
Forgan & Co.;.Kuhn, Loeb & Co.; Eastman Dillon, Union
Securities & Co., and A. C. Allyn & Co. Inc. (jointly);
Drexel & Co. and .^Equitable Securities Corp.
(jointly).
Offering;—Planned in first half of 1958.
Georgia Power Co.
Dec. 6 it

(3/20)

/w

announced company

frlans to issue and sell
$21,500,000 of first mortgage bonds due 1988. Proceeds—■"
was

To finance construction program.

determined

ders:

&

it

program.

by. competitive

Underwriter.— To be

bidding.

Probable bidders:
Halsey, Stuart & Co. Inc.^ Morgan Stanley & Co.; Leh¬
man
Brothers; The First Boston Corp.; Blyth & Co., Inc.,;
Kidder, Peabbdy- & Co. 'and Shields & Co. (jointly);

(2/25)

bank loans and for construction
program. Underwriter—
To be determined by competitive

.

around

it was

Power

Corp.!/:/

Dec. 12

&

Tentatively expected to be received in January.

was

&

Duquesiie Light Co

it

it

(2/25)

plans to issue and sell

was stated that about
$60,000,000 of new bonds
be sold:next year to repay bank loans incurred
•through August,/1958. Underwriter—To be determined
through competitive bidding. Probable bidders: Halsey,
Stuart & Co.,Inc.; Morgan Stanley &
Co.; The First

was reported
company may issue $4,500,000
mortgage bonds.
Underwriter — To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; The First Boston Corp.; and Coffin
& Burr, Inc. and F. S. Moseley & Co. (jointly). Bids—

Dec. 9

on

may

Carl C. Ernst, President, said that "it now
will be hack to market more securities soon
first of the year."
Proceeds—For repayment

Central

stock

Dec. 3 it

.

Electric

first

9

' common

Illuminating Co.

Consolidated Edison

increase capital and surplus.

Cambridge Electric Light Co.
of

Electric

of

Underwriter—None.

(jointly).

Co.; White, Weld & Co. (2) For
common stock—Merrill
Lynch, Pierce, Fenner & Beane;
Carl M. Loeb, Rhoades & Co.; White, Weld & Co.; Kid¬
der, Peabody & Co.
Any preferred stock may be sold
on a negotiated basis, and underwriters
may be Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody
& Co. (jointly).

Oct.

it

9

1958

writers

To be determined by competitive bidding. Probable bid¬
ders:
(1) For any bonds—Halsey, Stuart & Co, Inc.;

Kidder,

shares

basis.

be received up to
,119011

Dec.

(par $10)

additional

l-for-16

Co., Inc.;.!
and Baxter, Williams & Co.
(jointly); Glore, Forgan &
Co.; Blyth & Co:, Inc.; The First Boston Corp.; White,
Weld & Co/ Dillon Read & Co. Inc.
Bids—Expected to

Underwriter—To be determined by
bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Lehman Brothers; Blyth & Co., Inc., and
F. S. Moseley & Co. (jointly); Merrill Lynch, Pierce,
Fenner & Beane; Harriman Ripley & Co. Inc. and The
First Boston Corp. (jointly); White, Weld & Co.

Proceeds—To

in

writer—To be determined by competitive
bidding. Prob-.
able bidders: Halsey, Stuart & Co. Inc.; Blair &

program.

it

plans

company

$30,000,000 of first mortgage bonds due 1993. Proceeds—
bank loans and for new construction. Under-,

competitive

23

that

of 1958 to offer to its common stockholders

450,000
a

announced

To repay

first mortgage bonds next April
Proceeds—To repay bank loans and for con¬

stockholders

also

Dec. 17 it was announced
company

sell $22,000,000 of

May.

was

summer

about

Brooklyn Union Gas Co.
and

it

8

about

•

Nov. 25 it

t
{

(1/23)

For

Continental

!

-

expected to be received by the company up to
noon
(CST) on Jan. 9 for the purchase from it of
$4,620,000 equipment trust certificates. Probable bidders:*1;

reported company plans to issue and sell
$15,000,000 of first mortgage bonds. Proceeds—To repay

debentures due

Price—To be supplied
by amendment.

by the company on
it of $4,500,000 equipment:
bidders: Halsey, Stuart (Se

Chicago, Rock Island & Pacific

Hutzler.

Dec.

★ West Virginia Pulp & Paper Co.

12 it

Co.

Bids

5, N. Y., on January 23 for the purchase
$3,435,000 equipment irust certificates. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Salomon Bros. &

of bank loans and for

$20,000,000 of first mortgage bonds
$10,000,000 of sinking fund debentures

received

Chicago District Pipeline Co.

York

received

be

appears we

filed

be

to

certificates. 'Probable

ine.; Salomon Bros. & Hutzler.

from it of

alter

Washington Water
Dec.

expected

Jan. 21 for the purchase from

trust

Cincinnati Gas & Electric Co.
Baltimore & Ohio
Bids

offered to certain individuals under
options. Proceeds—
For general corporate
purposes. Office — 3612 Quesada

St., N. W., Washington, D. C.
Co., New York City.

are

Co.

&

(1/21)

about

of American Gas & Electric

Dec.

2

$24,500,000 general
Underwriter—To be

Brothers, Eastman Dillon Union Securities

Bids

^ Buffalo Industrial Bank, Buffalo, N. Y.

Washington National Development Corp.

retire

Chicago, Burlington & Quincy RR.

&

reported that this company, a subsidiary

was

struction

24

stockholders

of

the

To

—

by competitive bidding. Probable bidders:' 1
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Leh/ ■

approximately $720,000,000 oi

on

Appalachian Electric Power Co.

or

Warwick Valley Telephone Co.

of

Proceeds

its

7, .1958 and the subscription period will run until
March 12, 1958. Proceeds—To meet demand for
telephone facilities. Underwriter—None.

Dec.

merger,

stock interest in Rockwood Slag.

1, 1978.

determined

Nov.

stock in

exchange for the stocks of
Wesco Materials, Inc.; Wesco Contracting
Co., Asphalt
Paving Materials Co.; Brooks Sand & Gravel Co.; and
Tennessee Equipment Co.; 50% of the
outstanding stock
of Chattanooga Rock Products Co. and
66%% of the
stock

Feb.

about
new

1957, viz: Each of

the 1,143,968 shares of Union common stock outstanding
are to be converted into W\
shares of Vulcan common

share

Feb.

issue

debentures

scription rights

common

are

company plans to sell about
mortgage bonds sometime after the
turn of the year. Proceeds—To repay advances made
by
Peoples Gas Light & Coke Co., the parent. Underwriters
—Probably Dillon, Read & Co. Inc. and Halsey, Stuart

(2/7)

announced company plans to offer to

was

amount

in

,

(1/8)

noon

man

Prospective Offerings
stockholders

cumulative

(par $100), 54,631 shares of 5%% cumula¬
preferred stock (par $100), 87,000 shares of 5%
cumulative convertible preferred stock (par $16) and

l/20th

Bids

$5,000,000

tive

into

& Son, Inc.

(letter of notification) $75,000 of 10-year 6%
due Oct. 1, 1967, with common stock war¬
rants to purchase 7,500 shares of 10-cent par common
stock at $1 per share.
Price—$100 per unit of a $100
debenture and one warrant.
Proceeds—To repay short
term debt and for working capital.
Office—Stockholm.
N. Y. Underwriter—Sherry Co., New York.

ferred stock

merger to

new

on

14

share).

Co., Birmingham, Ala.

114,396

2,390,230 shares of

Chicago, Burlington & Quincy RR.

Nov.

Proceeds-^|or working capital. Office—1355 East 93rd
St., Chicago, 111. Underwriter—None.
Vulcan

26,

shar^Sneld; rights to expire

Chicago, III.

Price—At

V.

.

mortgage bonds due March 1, 1958.

Dec. 13 (letter of notification) 60,000 shares of 6% cumu¬
lative non-voting preferred stock to be offered for sub¬

Dec.

stock (par $10) to

re¬

.

..
.'/

•

.

debentures

per

Feb. 4.

Harley, Hayden & Co. and Bell & Farrell, Inc., both of
Madison, Wis.

Portland, Ore., is President.

(letter of notification) 50,000 shares of class B
stock (no par). Price—20,000 shares at 50 cents

(jointly)/ Bids—Tentatively expected to be

on

expected to be received by the company up to
(EST) on Jan. 8 for the purchase from it of $24,
500,000 of new first and refunding mortgage bonds due

Nov.

common

ceived

subscription by common stockholders of

Underwriter—

bidding.
Probable
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co.; Kidder, Peabody & Co.: Lehman Bro¬
thers and Glore, Forgan & Co. (jointly); Blyth & Co.
Inc.; The First Boston Corp.; Kuhn, Loeb & Co.; Merrill.
Lynch, Pierce, Fenner & Beane and Salomon Bros. &

share for
Jan. 17, 1958.
Price—$16 per share. Proceeds—To repay bank loans.
Underwriters—The Milwaukee Co., Milwaukee, Wis.; and

Dec.

Young

^ Uranium Girl Inc.
Dec.

for

be offered

Thursday, December 26,1957

.

bank loans and for construction program.
To be determined by competitive

.

each six

Uranium Corp.

Inc. (1/3)

.

bidders:

Hutzler

Wisconsin Southern Gas Co.,

record

April 30 filed 1,250,000 shares of common stock (par 1C
cents). Price—To be supplied by amendment (expected
to be $1 per share). Proceeds—For exploration purposes
Underwriter—To be named by amendment. Graham Al¬

(Canada)

Copperada Mining Corp.

Aug. 30 (letter of notification) 300,000 shares of commoE
stock. Price—At par ($1 per share). Proceeds—For de¬
velopment and exploratory work, drilling costs and sur¬

.

•

Equitable

Securities Corp. and Eastman Dillon, Union

Securities

&

ceived up

to 11'

:Co,' (jointly).. Bids—Scheduled, to be
a.m.

(EST)

on

Feb. 20.

re¬

Registration—-

Planned for Feb. 21..

Great
Bids

are

Northern

(1/23)

Ry.

expected to be

Jan. 23 for the purchase
trust certificates.

received, by the company on

from it of $5,700,000 equipment

./Probable bidders: Halsey, Stuart & Cor

Inc.; Salomon Bros. & Hutzler.

Volume 183

Number 5702

.

.

The Commercial and Financial Chronicle

.

(2843)
Gulf, Mobile & Ohio RR.
Nov.

8

company

applied

-

the ICC

to

for

permission

1,000,000 shares (par $l), and 10,000 shares outstanding.
Office-^-Vancouver, B. C./Canada.
7
,■

to

$28,343,800 of 5% income debentures to mature
1, 2056 in exchange for the 283,438 shares of, out¬
standing $5 preferred stock (ho par)„.on the basis, of
$100 of debentures for each preferred share.
,

New

,

] Gulf

Power Co.

(2/20)

plans to issue and sell
$8,000,000 of first mortgage bonds due 1988. Proceeds—
To finance', construction, program.v Underwriter—To be
determined i>y competitive .bidding^ Probable bidders:

Higginson Corp.; Equitable Securities Corp. and Eastman
.Dillon, Union Securities & Co. (jointly); Kidder, Peabody & Co. and Stone & Webster Securities Corp.

-

•*

(jointly); White, Weld & Co.j Salomon'Bros. & Hutzler.

Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Blyth & 7
Norfolk & Western Ry. (1/22)
Co.,. Inc.; Lehman Brothers; Eastman DUlonV Union Se¬ :*! Bids are
expected to be received by this company up to
curities :&£0o> and Equitable Securities
Corp.K(jointly);
noon
(EST): on Jan. 22 for the purchase from it of
Merrill Lynch, Pierce,- Fenner &. Beane and Salomon
>$4,140,000 equipment trust certificates (third instalment)
Bros., & Hutzler,;(jointly).;,Bids—Scheduled to be re¬
to mature semi-annually from
>

=

ceived

up to 11 a.m. (EST)
Planned for!"Jan. 24."J'-*'~

tJ-

Dec.

16

it

(?/18)

'7'"

«r

(

',

announced

was

20.

May 1, 1958 to and in¬
1, 1972. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler.

Registration-

cluding Nov.

,77/777/.■/■':'7 V 777;

; Gulf States Utilities Co.
•7

Feb.

on

I*.-'1

a

^ ::v

,

i.

v

*

♦,:*»*.V.

Northern Illinois Gas Co.. (2/19)
Dec. 13 this company announced that

consideration

ders:

or

company

raise

Stone ,&

(jointly>.. Bids—Scheduled ;to be rece^ye^

y Illinois Central RR. ,'

as

early

to the form

is

in

1958.

No

decision

of the proposed

being given

to

sale

plans to

now

has

of

no

stock

common

securities convertible into

bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.;-The First Boston
Corp.;
Glore, Forgan & Co.; Blyth & Co., Inc. Bids—Expected

oh Feb./18.

to

are expected to be received
by the company early
in January for the purchase from it ,©f a new issue of

be received

Northern

Feb.

on

Natural

7

19.

be

offered

in

late

Bank

Development

Dec., 17 it

for Reconstruction

and

("World Bank")

Dec. 12 it

announced, thqt 4be

market

it Iowa lltliinois Gas & Electric Co. .(3/5),.l_y
Dec. 9 it

was announced company/
plans tp i$sue. and sell
$9,000,000, of. debentures (probably convertible). Proceeds

—To

bank

v

Approximately

March 4.

77 " /'

& Co.;
GIore„ Forgan & Co.; The;First Boston Corp.;
Harriman, Ripley & Co. Inc., Eastman, Dillon, VUnion Se¬

debentures/

Whitej 'Weld & Co. (jointly)' Lehman
Brothers; Merrill Lynch, Pierce, Fennei'. &-Bqqne; Equi¬
table Securities Corp.; Blyth & Co.7B)Lds-7Expeeted on

*

'

December

Ohio.

Un¬

bidding.
Probable bidders: Halsey, Stuart & Co.; Eastman
Dillon,

Union

Securities

&

Co.

and

Salomon

Bros.

Hutzler

&

(jointly); Blair & Co. Inc.; White, Weld)&(Cos; The First
Boston Corp., Kuhn, Loeb &
Co."anil; ^.CC.^Allyn .& Co.,
Inc. (jointly); Kidder, Peabody .& Co.Vand Blyth & Co.
(jointly). Bids—Expected to be received on March 3.
Litton Industries,

Dec.
of

14

stockholders

Inc.

16,000 shares of $100

crease

in the authorized

common

3,500,000 shares. Underwriters
Clark, Dodge-& Co. handled last

—

was

done

privately.././

.

equity financing which
'777a..;U1.,

'v

(

Louisiana

in¬

an

stocjk. frdp>. 2,000,000 to
Lehpian Brothers and

Power; & Light Co.

.

.

l»4
-

'

"V

;k>k

-

vu

...

Dec. 16, it was!announced company may
^q|-ro>vi$U,500,000 from banks pending a final

financing,program relat¬

ing to the disposition of its
Gas Service

Co.,

a new

gas

.

16

it

properties to Louisiana

/

,

,

reported

company/ may be planning to
stockholders the.; right,to subscribe
166*070 additional shares of .common stock on a
l-for-10 basis/
Underwriter—Kalmari & Co., Minneap¬
was

.

offer to its

common

for about

olis, Minn.
Mississippi
was

Power

&

near

Co., Cleveland,

future.

Underwriter—To be determined

by competi¬
(1) For bonds—Halsey,

Probable bidders:

Tierce,

White, Weld & Co. (jointly); Har¬
riman Ripley & Co. Inc. and Eastman Dillon, Union
Securities & Co. (jointly).
(2) For preferred stock —
Merrill Lynch, Pierce, Fenner & Beane and White, Weld
& Co. (jointly); The First Boston Corp.; Lehman Bros,
and Blyth & Co. Inc. (jointly); Smith, Barney &
Co.;
Harriman Ripley & Co. Inc.; Kuhn, Loeb & Co.
Any
offering of common stock may be made to common

Dec.

with

Merrill

Lynch,

Pierce,

Fenner

&

underwriting.

Pacific

and

&

Light

Co.

announced company

plans to issue and sell,
probably in May or June of 1958,. $10,000,000 of first
mortgage bonds.
Underwriter—To ber determined by
competitive bidding. Probable bidders: Halsey, Stuart
.

& Co.

Inc.; Kuhn, Loeb & Co.; Equitable Securities Corp.
and Shields; & Co. (jointly); Blyth &
Co., Inc.; Merrill
Lynch, Pierce, Fenner & Beane, Eastman Dillon, Union
Securities &. Co.; White, Weld & Co.. apd Kidder Peabody & Co; (jointly); The First Boston.Corp;w V

Gas

&

Electric Co.

retire

bank

loans

and

for

construction

program.

Underwriter—To be determined by competitive
Probable bidders: The First Boston Corp. and

bidding.
Halsey,
Stuart & Co. Inc. (jointly); Blyth & Co., Inc. Bids—To be
received up to 8:30 a.m. (PST) on Jan. 21, 1958.
Pacific

Gas

was

&

Electric Co.

announced company

plans, following bond

sale about Jan. 21, to offer a Small amount of common
stock to keep the capital structure in reasonable balance.

Underwriter—Blyth & Co., Inc., San Francisco and New
York.

are

expected

RR.

to

be

(1/15)

./

received

7-7,/->"•'

by7the

company

Pennsylvania Electric Co.
it

Jan. 15 for the purchase from

it of $3,£50,000 equipment
Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler.

Nov. 25 it

was.

Fund, Ltd.

announced company

writer-—To be determined by competitive bidding. Prob¬
able bidders:

Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Equitable Securities Corp.; Kidder, Peabody &
Co., Merrill Lynch, Pierce, Fenner & Beane, Eastman
Dillon, Union Securities & Co. and White, Weld & Co.
(jointly); Harriman Ripley & Co. Inc. Bids—Tentatively
.scheduled to be received up to 11 a.m. (EST) on Feb. 24.

are

has ^applied




reported company plans to issue and sell
equipment trust certificates. Probable bid¬

was

to SEC

Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

it Southern California Edison Co.
Dec. 19, Harold Quinton, President, announced company
would require around $70,000,000 in new

financing dur¬
ing 1953. He predicted the next offering, probably in
Spring, would consist of bonds. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; The First
Boston Corp. and Dean Witter & Co.
(jointly); Blyth &
Co., Inc.
the

Southern

16 it

Dec.
in

to

(1/8)

be

trust certificates. Probable bidders:

Halsey, Stuart & Co.

Inc.; Salomon Bros. & Hutzler.

it

& Coke Co.

reported company plans to issue and sell
March, 1958, $15,000,000 of first mortgage boqds. Un¬

derwriter

program.

To

—

Probable

be

determined by competitive bidding.
Halsey, Stuart & Co. Inc.; Blyth &
Weld & Co.; Merrill Lynch, Pierce,

bidders:

Inc.;

Dec. 3 it

White,

To

reduce

bank

loans

and

$5,000,000 and $6,000d>00

new

capital, about

two-thirds of which will be through bond financing and
the balance through common stock financing.
Under¬
writer—For

stock,

be Hornblower & Weeks, Wil¬

may

liam R. Staats & Co. and The First California Co. (joint¬

ly).

For bonds, to be determined by competitive bid¬
ding.
Only bidders in 1956 for $4,000,000 bonds were
Halsey, Stuart & Co. Inc.; Hornblower & Weeks and

Southern

Dec.

it

12

New

(jointly).

England Telephone Co.

announced

(2/26)

plans to issue and
sell $30,000,000 of debentures.
Proceeds—For repay¬
ment of advances received from American Telephone &
Telegraph Co. and construction program. Underwriter—
To be determined
by cdhipetitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.; White, Weld & Co. and Kidder, Peabody & Co.
(jointly); Lehman Brothers and Salomon Bros. & Hutzler
(jointly); The First Boston Corp.; Merrill Lynch, Pierce,
was

Fenner & Beane.

Feb. 26.

Bids

company

Scheduled to be received

—

on

Registration—Planned for Feb. 4.

Tennessee Gas Transmission Co.
Dec.

17

directors approved

proposal to issue and sell

a

1,000,000 shares of common stock early in February, 1958.
Proceeds—For
construction
program.
Underwriters—
Stone

Webster

&

Securities

Corp. and White, Weld

&

Co., both of New York.
•

Texas Utilities Co.

(2/4)

announced company may

was

common

stock.

sell 340,000 addi¬

Proceeds—For construc¬

tion program.

Underwriter—To be determined by com¬
bidding.
Probable bidders: Kidder, Peabody
Merrill Lynch, Pierce, Fenner & Beane
(jointly); The First Boston Corp. and Blyth & Co., Inc.
(jointly); The First Southwest Corp., Rauscher, Pierce
& Co. and Dallas Securities Co. (jointly); Lehman Bros,
and
Bear, Stearns & Co.
(jointly); Eastman Dillon,
Union Securities & Co. Bids—Expected to be received
up to 11 a.m. (EST) on Feb. 4. Registration—Planned for
petitive
Co.

&

Jan.

and

10.

I

Tuttle
Nov.

Engineering, Inc., Arcadia, Calif.

6, Harry Oedekerk, Chairman of the Board,
corporation plans a public stock issue in

nounced

future.

Proceeds—For working capital and

Union Electric Co.
Nov.

11

1,000,000
common

it

was

an¬

the
other

(Mo.)

reported company plans to offer around

additional

shares

stockholders.

of common
Underwriter—To

stock,

first

to

be determined

by competitive bidding.
Probable bidders: Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane.
Union Electric Co.

Nov.

11

it

(Mo.)

plans to issue and
mortgage bonds.
bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers and Bear, Stearns & Co. (jointly); White, Weld
& Co., Blyth & Co., Inc., Eastman Dillon, Union Securi¬
ties & Co. and Shields & Co. (jointly); The First Bos¬
ton Corp. Offering—Expected early in March.
sell

reported

was

approximately

company

$35,000,000

Washington Natural

was

—

announced company plans to raise in mid-

was

1958 between

(1/22)

reported company plans to issue and sell
50,000 shares of cumulative preferred stock (par $100).
Proceeds

Counties Gas Co. of California

was

first

Underwriter—To be determined by competitive

received by the company on
purchase from it of $3,975,000 equipment

expected

Jan. 8 for the

Dec. 3

for permission to issue and sell in the United States its
class A common shares, of which there are authorized

ders:

was

Portland Gas

'

Canadian

Seaboard Air Line'RR.

corporate purposes.

(2/24)

reported company plans to issue and sell
$29,000,000 of first mortgage bonds due 1988. Proceeds—
To repay loans and for construction program. Under¬

Bids
on

trust certificates.

Multnomah

share in July, 1956.

near

Pittsburgh & Lake Erie Ry.

*

Missouri- Pacific

New

tional shares of

(1/21)

-

Bids

and

Dec. 16 it

18 directors authorized the sale of $75,000,000 first
refunding mortgage bonds due Dec. 1, 1978. Proceeds

—To

ni?t

Co., Inc., Coral Gables,
York, N. Y., handled previous public
offering of 500,000 shares of common stock at $3.25 per
Fla.

William R. Staats & Co.

/

Fenner & Beane and

Dec. 4

Dec. 4 it

7

company.

Minneapolis Gas Co.

Dec.

"/ 7'.'

'7

Underwriter—McDonald

bidding.

Nov. 4 it
/

.

Stuart & Co.. Inc.; Equitable Securities Corp.; The First
Boston Corp.; Kuhn* Loeb & Co., Merrill Lynch,

•

stock, the number of

Southern Nevada Power Co.

18 it was reported conipany plans to raise about
$20,000,000 next Spring, through sale of bonds and other

Beane

plans to register with

Underwriter—James II. Price &

(3/4)

■

.*.i,

j.

'

stoej^Vand

preferred

par

issue

an

common

yet determined. The authorized common stock has been
increased from 7,500,000 to 15,000,000 shares. Proceeds
—To finance route expansion and for
working capital.

reported company to issue and sell in
issue of $1,500,000 convertible subordinated

stockholders,

approved the creation of

new

shares and the price at which they will be offered

Co.,

Nov.

tive

—

repay

announced company

issue of

an

Fenner & Beane.

Registration—Expected in

Dec.; 18 it

To repay bghk loans and for construction
program.
derwriters
To be determined by competitive

Airlines, Inc.
was

the SEC

was

an

securities.

reported '.company '.plans' to.^ssuc.-and sell
$10,000,000 of first mortgage bonds. duq7l988. Proceeds—

to

Underwriter

Oklahoma Gas & Electric Co.

★ Iowa Public Service Co7 (3/3
was

$20,000,000

program.

shares

•"

Ohio Water Service Co.

Sept. 26 it

fqrt/£*qb7

Riddle

Oct. 21 it

was

Probable bidders: Halsey, Stuart & Co. Incd Kuhn, Loeb

curities & Co, and

eight

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan, Stanley & Co.; First Boston Corp.; Glore, For¬
gan & Co., White, Weld & Co. and Eastman Dillon,
Union Securities & Co. (jointly). Bids — Expected on

loans

March 5. ..Registration—Planned

// :7

each

reported company plans to offer $30,000,000 to $35,000,000 first mortgage bonds du^ 1988.
Pro¬
ceeds—To repay bank loans, etc. and for new construction. Underwriter — To be determined by competitive

and for construction program.
Underwriter—To be determined by competitive bidding.
repay

for

for construction

stockholders

common

share

new

one

Ohio Edison Co.

Bahbri^ planning to
$150,000,000 of bonds in thi§ counlry/.before the
middle of/January,
1958.7Underwriter^i'he; First Bos¬
ton Corp. and /Morgan Stanley. & Co.,' bdth of New York.
was

<

January to

.

—

International

Co.

$10),

to

buy 7Q'new loco¬

motives, costing approximately $12,250,000, and $250,000 ,'on the basis of
held. Proceeds
of spare parts; Underwriter—To be determined"by com¬
bank loans and
petitive bidding. Probable bidders: Halsey, Stuart & Co.
—None.
Inc.; Salomon Bros. & Huzler.
'"7".'; • !*77

•

Gas

Nov. 25 the company announced the
proposed issuance
of 456,813 additional shares of common stock
(par

equipment /trust certificates to an amount sufficient to
finance three-fourths of the cost of
newvequipment. Pro¬

:

1958

Underwriter—May be Merrill
Lynch, Pierce, Fenner & Beane, New York.

been

financing, but

Bids

ceeds—Together with other funds,to

Gas Co.

&

company

For construction program.

$5,445,000

it

announced

anticipates it will
$25,000,000 of preferred stock. Proceeds—

was

Nov. 18 it

common stock.
Proceeds—
For construction program. Underwriter—For
any bonds,
to be determined by competitive

'77!7.7

-

$10,000,000

made

Webster. Securities Corp.; vLehman Bro¬
thers and>Equitable Securities Corp. (jointly); Kuhn,
Loeb & Co.; Glore, Forgaii & Co. arid W. iC.
Langley &
Co.

it

1

;

1

plans to issue and
sell 75,000 shares of cumulative preferred stook
(par
$100).-; Preoeeds—To repay bank loans. Underwriter—
To be determined by competitive bidding, j Probable bid¬

•

Aug.

sell in

announced company

was

plans to issue and sell
$6,u00,000 of first mortgage bonds in the Spring of 1958.
Underwriter—To be determined by competitive bid¬
dings Probable bidders: Halsey, Stuart & Co. Inc.; Lee

"r

announced company

was

Orleans Public Service Inc.

Dec. 4 it

_

Dec. 6 it

Electric

Service

.

issue

Dec.

Public

35

for construction

Underwriter—Lehman Brothers, New York.

Oct.
in

18

the

directors

debentures.

the sale of $5,000,000

Proceeds—For expansion program.

derwriter—Blyth
York.

Gas Co.

authorized

Un¬

& Co., Inc., San Francisco and New

36

Continued jrorri page

w

we

mad because
give grants to India. Others

we

gets

because we give grants
either one or both of them.

get mad
to

mad because we don't

Others get

give them big enough grants. They
ask for fifty million and we only

Tne net result

give five million.
is that we've lost

million.

five

the

Now

mad

give grants to Pakis¬

Pakistan

tan.

done

has

to

our

savings deposits. I don't have to
attempt to enter into a discussion

gets

India

measures?

these

Pittsburgh, Milwaukee, New Or¬
Buffalo and Dallas — it
to just a little over $60 bil¬
I was a little bit worried
of
the reasons for inflation. lion.
Whether it's administrative, cost- about the accuracy of that assessed
push, d em a n d - p u 11, spiraiing valuation. However, the New York
wages or whatever it may be. But, State Board of Equalization and
there is one significant fact:
I Assessment says that at least, in
read the papers fairly carefully this State, it's just about the true
and I have yet to see any econo¬ value. So,•presumably, on the av¬
mist point to the second largest erage it is elsewhere. But, in these
item in our national budget as one' billions we are speaking of ap¬
of the principal causes of infla¬
proximations anyway." What we
tion, to wit; our foreign aid. But, have done, if it were physically
we have been averaging over the
possible, is to take the 17 biggest
last several years, since the end- cities of this country and ship
them overseas. As of June 30, last,
of World War II, $5 to $6 billion
a year,, plus more
billions, under since the end of World War II, we
have given away-or-loaned-in
Law 480, covering the agricultur¬
inflation

what

16

Sugar" Now "Uncle Sap"

Uncle

because

the friend plus
Pakistan and

Iraq were mad because we offered
Egypt the Aswan Dam, which
never should have been offered hi

India, out of the hundreds

of millions of dollars

have

we

is lavishly spending to

sent them,

their

into

Kashmir

consolidate

thus causing difficulties
Pakistan.
We pick up the

country,
with

check.

well-run, financially careful

A,

country, gets less than the spend¬
thrifts from us in handouts. Brazil
won't

permit the development of
which would save

its oil resources,

them millions of dollars in foreign

exchange, although it's getting to al exports given away, abroad.
the point that everything they can The total since 1946 gets up well
over $60
billion. We buy mate¬
the first place. Ceylon and other: get from their coffee exports has
rials
and machinery
and other
neutrals quite frankly prefer tthe to go into dollar exchange.
We finance the debts of foreign things here at home. We ship them
Soviet or Chinese Communist
countries. The government of one all overseas and much of that
loans to our gifts.
They are op¬
of the Bagdad Pact countries was money is spent here. Isn't that an
posed to us, they vote against us
the United Nations, they are trying seriously to gain financial
nationalizing everything in their stability. But, its legislature in¬
sisted on a substantial deficit and
countries, they're creating socialist
was quite frank in giving the rea¬
states.

in

What

are

and the

the Russians

United

the

>—"because

son

some

words, it would seem already are so afflicted with in¬
that insofar as getting United flation right in this country be
up
their hard earned
{States bounty is concerned it is giving
far better to be non-committed money in order to create infla¬
and neutralist or even Communist tionary problems elsewhere?
other

In

In

whole

this

situation,

Latin

is very much annoyed—

with

and

Tito's Double-Cross

Americans Annoyed Too

America

justice

some

—

because

What

is

serious,

the

greatest economic ad¬
of any. countries in the
including the United States.
said before, they laugh, at us.

vance

world
I

Let

pie

by

Oswaldo

tell (<you

a

story,

as

told

Aranha, who now
heads the Brazilian delegation at
UN.
He has been Foreign Min-^
fster, Minister of Finance, a candi¬
date for President and held other

important posts. When he came
up here to be President of the As¬
sembly of the United Nations some
years ago he told this story—this
was before Grace Kelly got mar¬
ried and perhaps one could laugh
a bit at Monaco.

prince of Monaco went to
Washington to meet the President.
After

some conversation, the Pres¬
ident said, "Well, what's the com¬

munist situation in Monaco?"

Prince:

"Nary

haven't

a

The

Communist! We

anything like it.

fellow-traveller!
a

whistle."

Not.a
Nothing! Clean
"Well," said Mr.

Truman, "I'm very sorry. We can't
give you any grants or credits.'*
So the Prince went back disap¬
pointedly to Monaco. He sent a
hurry-up telegram to the Foreign
Minister of France, Bidault:
"You've got a lot of Communists.
Bend me up a dozen, I need them
desperately." Bidault replied, "I'm
cony I can't let you have any
Communists because I need every
one
I've got here otherwise the
United States will cut

our

credits."

Irritate and Cash In
In
read

line

with

that

story I just

the following in the Indian

Current

discussing

the

fact

that

the Finance Minister of India has
been in this country trying to get
five hundred million dollar
loan: The Nehru-Menon line is
"Irritate
you

lion

the

United

States

and

will get your loan quicker*"




(it's

figures

we

four hundred mil¬

or

What's
As

is

it

me

seems

have

I

a

per¬

Billion?

tried

to

cult.

You

can

diffi¬

very

that so many
foot apart,

say

fenceposts, spaced

what

gauge

billion, I found it

a

one

will circumscribe the world at the

equator so many times or, that if
will give me one dollar for

you

each

minute

that

since

Christ
to

comes

dollars.

little

a

But,

the

moment

born,

was

that

over

a

fenceposts.

I can't

conceive of the number of minutes

since Christ
a

billion.

valuation
other

born.

was

Finally, 1

to visualize what is

way

If you take the assessed
of all of the real and

property in the 17 biggest
the United States—New

cities

in

largely fictitious credits, $60 bil¬
lion.

have

We

given

the

away

17 biggest cities.
If the American people knew these

equivalent of

our

facts, I don't believe they would
stand for it.

Perhaps
brate

~

'

i

,

/-

way to cali¬
billion dollars is

another

what is

a

to take the

equity of the hundred
largest companies in the United
States, distributed as it is amongst
7,278,000 registered stockholders.
That equity, which is about twothirds of the total assets, amounts

,

was

Yugoslavia, and Sinclair Weeks,
Secretary of Commerce was
there opening the exhibit in the
fair that they were having, neither
our

Tito

nor

near

the fair because

Gomulka

would

come

As

nearly

somewhere
40 cents

for

can

find

and

overhead

and

vast

other

sums

pass

costs

through

Washington.
The

Figures

aid!

After

the

Congress

reduced

budget this year,
foreign aid appropria¬

new

tions for fiscal year 1958 were as

follows:

Approved by Congress ($1 Billion Less Than
are:

___

Reappropriated for unobligated Fiscal Year 1957 *

000,000

*$3,4*15,760*000

trying to buy.
selves

that

They

national

"reserved"

actually

and

reported

as

are

all

said, it

seems

impos¬

testimony before the House For¬
eign

Affairs

Committee,

the

us,

trying to get
have

Ourselves

they

some more

appeared

are

from

in

In other words,

are giving the Communists in
Poland the money to compete with
legitimate American enterprise in
this hemisphere.
I think it's in¬

we

excusable.
friends

or

They
allies

never

aiid

will

they

be

never

will respect us.
money

So far as giving
to Poland and Yugoslavia

is concerned, I think it would be
a
little more expeditious if we

and

of them

are

:are:

They h a v e one talent,
though* and; thas is being able to
take so-called investigating conlmittees into camp before, during
and after these tours that they

worse.

'

make.

The

;

-

;
•

'•

-

thing applies to the

same

"experts," "consultants" and "con¬
tractors" sent abroad. They do not
know foreign country's economic

.In connection with the financial
and

accounting aspects of foreign

recommend your reading
Report by the House
Committee on Government Opera¬
tions (May 15, 1957), House Re¬
port #449 of the 85th Congress'
aid*

I

Fifth

the

You

session.

lot of

will

learn

a

expressions, such as,
"over-programming," "illustrative
budgeting" and "other costs."
new

"Over

-

programming"

getting

means

more

simply

money

than

actually is needed. "Illustrative
budgeting" means that I. C. A.
requests an appropriaiio® for "X"
millions cf dollaiS? to be spent in

present

time.

over

these

reserved

obligated funds. In fiscal

con¬

and

un¬

year

1953

the publicly announced appropria¬
tions, and this isn't taking the re¬
serves and unobligated funds into
account, was over $6 billion as
compared to that $3,435,000,000
that I'just mentioned. In 1953, the
I. C. A. payroll had 7,000 U. S.
citizens and a total of 10,338. This
year, as of June 30, the payroll
was
9,164 Americans and 13,000
total. In other words, as I said to
begin with, neither the Congress
nor the people know the amounts

for which
and what

The

being obligated
actually is being spent.
we

are

bureaucrats

have

a

further

be<'i'cqu£ste^

East.

.The, project also will
deseribed-incgenl/raLamLmot
the

Thus, the dialogue

committee members

representatives would
something like this:

million dollars.".

hundred

a

by 2,000 people and there are more
"Where are you going to
on the
way.
This has happened it?" say the
Congressmen.
in spite of instructions from Con¬
"That we can't tell."
gress that personnel was to be
"How many kilowatts?*'
reduced by 10%
from the 1953
"Haven't decided on that."
figure.

I maintain that such pro¬

endanger

our

constitu¬

and the legal processes.
We are told that foreign

aid is
a
substitute for an appreciable
part of our own defense budget.

That

trol

own

with Americans.

the

Congress has abdicated its

Brazil, in
hemisphere, offering to
finance the development of a large
iron ore deposit in competition
our

at

between two and three years.

one.

had received before, and
now

bureaucrats

Abdication by Congress

Competing With

some

need
As I have

sible to get the exact figures.
As a matter of fact, in sworn

Communists.

Poland, which recently got $90
million, in addition to what they

Some of them

socialists

"We are gbing to put a power
plant in that area for which we

*Published.

unexpended funds to support the
present program for somewhere

so-

Os^thliy I

such

I would hire.

run

2,500,000,000

In other words, there are enough

the

of luxuries

•

enjoyed before. M0y: of ]
these bureaucrats, neither you ilor never

ahd I. C: A.

unexpended but

unobligated

are

Communists

from

international

ting cars* homes* servants and all
manner

between

Another estimate gives total estimated amount

our¬

Let's not kid

different

any

called

that.

we

go

30 or 40 days and

or

specific terms*
5,523,000,000

tional government. They endanger
the system of checks and balances

like

the

they are assailed by: our other
bureaucrats abroad, who are get- '

be

(less $667,-

above)

amount that was available to these

wouldn't

then

days—they

simply cannot learn the facts about
this complicated situation. —When
they get to the foreign countries,

Near

Total approved for Fiscal 1938
Total unexpended balance 6/30/57

cedures

the friends that

80

atioh would'

between $12 and $13 billion as the

are

in

given area, usually not in a par¬
ticular country;
i.f.,, the approipri-:

$2,763,600,000
667,000,000

American Farm Bureau estimated

Soviet

not

around in 20

nose.

around

them

a

New appropriations for Fiscal Year 1958

they would

the

of

world;

the

them and

some

send

first

It's very hard to find out what
are
the exadt figures on foreign

Secretary of Commerce, and

Those

brainwash

They

by

around

them

lead

out,

cents

each dollar is deducted

on

these

as

I

as

between 25

have to greet Mr. Sinclair Weeks,
our

how they take some
cleverest businessmen and

know

I

»ur

and other problems; they do not
know the people and often not
billion, I don't think
even the language.
Also, some of
people would con¬
sent to giving away the equity of them are prone to whitewash their
reports^ thus hoping to get another
our hundred biggest',corporations.
Incidentally, 4% interest on $60 paid vacation in exotic surround¬
billion is $2,400,000,000 dollars per ings or even a profitable contract
or
employment.
year.

President Eisenhower Insisted on)

visiting Tito

in

of

to about $61.7
the American

the

hard to get at the
these matters) he prom¬

When Gomulka

.

the bureaucrats* and 1

have seen those bureaucrats work

and

the Eisenhower

as

do?

they

ington by

York,

Appropriations

do

What

aid.

foreign

They are taken in hand in Wash-

Angeles,

Chicago, Philadelphia, Los
Detroit, Baltimore,
Cleveland, St. Louis, Washington,
San Francisco, Boston, Houston,

Thursday, December 26,1957

.

leans,

that

billion

can't conceive of

1

that number of

very

on

to

economic

on

.

.

comes

ised that he wouldn't do it.

are

The

as

two hundred

ignorant

fectly evident.

a

give
grants to Yugoslavia and Poland.
Tito
and
Gomulka are just as
much
Commies
as
Khrushchev,
and you can't trust any of them.
They are dedicated, whether it's
Khrushchev or Gomulka or Tito,
more

they have been our friends all the
way through; they have stuck to
us through thick and thin; volun¬
to destroy capitalism and to de»tarily went into the war on our
aide; some of them actually de¬ stroy freedom, and to destroy our
clared war before we did; and yet way of life. We know what Tito
said in regard to Hungary. He sup¬
they get a mere pittance of grants
and loans in comparison With the ported Khrushchev, Kadar and the
Russians going into Hungary. He
iest of the world.
It
is significant to note that has recognized the East German
those countries that have gotten Government, despite the fact that
before we gave him the billion
a, mere
pittance from us have
made

but

found

than to be our friend.

Latin

matters

inflation?

of*

cause

am

States

They offer
long-term
credits, occasionally at low inter¬ such countries as Brazil, Chile,
Bolivia and many others suffering
est rates. Usually they gyp them
in the process.
They offer some from the severest kind of infla¬
eo-called
technical advice
by a tion. Spain was one country that
few Soviet experts and some trade was fairly free from it until we
started to give her aid.
Now she
agreements, but they don't begin
anywhere near to give them the is having inflation. Why should,
the United States taxpayers who
grants that we do.
occasionally

important

Maybe I

will pick up the tab" and we did.
So we find all around the world

Chinese offering them?
them

Chronicle

The Commercial amd Financial

(2344)

simply is not true. There are
only a few of the nations to whom
we have given all of these bene¬
factions who would dare partici¬
pate in a war between two great
powers, such as the Soviet and
ourselves.
No wonder that one of the very

"What

this

refer to the
Hoover Commission report on Or¬
ganization of the Executive Branch
of the Government) characterized
this I. C. A. program as, and I
quote: "Diffuse" with "scattered
efforts"

subject

and

(I

the

"evaluation

of

"That

But

from
as

can't

decide

at

this,

need that hundredmillion dollars.''
; The
figures are not available
yet for this year, but during 1956
the individual country variations
,

between amounts budgeted

*

under
this illustrative presentation for
each country: ..and
the amounts actually used as reported by I.CA
total $481 ;6 million.
That's what,
the illustrative presentation means.
,

.

All of

us

are; accustdmed in our'

companies when we get an income:
and- .expense statement, to list at
the very end some trifling items
that we put together as "other
costs."

Now, what were the "other costs" under this system used, by
these

bureaucrats,in Washington

during

field

we:

■

Costs"

assistance

that

the bureaucrats insist they

Hoover Committee concluded,
should
strive to withdraw

Government

for

point."

results weak and sketchy" and the

"We

market

>

power?

few good and responsible reports
on

the

is

put

1956?
were

.

The

"Other,

item

70% of the total spent

amount
the technical spent in Guatemala-and 93% spent
soon
as
pos¬ in Haiti, and when-the congress¬
our

in

Jordan,

84%

of

the

-

trick; when they don't get all they sible" and "instead foster private, men asked what, the "Other Costs"
want at a particular hearing of technical assistance."
were—they couldn't be told <--just would send the checks straight
"that's secret!" That's a fine way
Congress in an appropriations bill,
through to Moscow.
The Commission Pastime
to run a business.
they later present deficiency bills.
We're promoting socialism and
One of Washington's favorite
They are very smart about this
the destruction of private enter¬ and
yr.
No System
play down additional requests pastimes over the last several
prise and investment everywhere. so that no one really knows ex¬ years has been the appointment
Permit me to quote frojn a
You only have to look at Iran ahd
of committees and commissions. Congressional Report: "I.G.A wit¬
actly what is happening. Since
Suez and Bolivia to see that. Get¬
There were the Gray Commis¬ nesses : admit. the absence Jof my
ting down to cases as a Savings Nqvember of last year, and we sion, Eric Johnson's, Nelson Rocke¬ systematic,.recording program^
haven't completed this year yet,
Bank Trustee, I don't
feller's the Fairless Commission changes. Indeed-it is.obvious that,
have^to teU
any one of you and enlarge upon i. e. A. has increased its personnel and others mstructed to report on frequently there is no recording of.
.

.

.

Volume

186

Number 5702

.

.

.

The Commercial and Financial Chronicle

(2845)
kind."

any

The

Deputy

Director

for Programming told Congress he
did not believe, "having a record

waste and

extravagance, stupidity there has

and worse. Senator John Marshall

service

been

to

used

maintain

United

States

of

America

is

to

Bolivia's loans with the

on

supply the money, the United NaButler, Maryland Republican, has Export-Import Bank. That
is, you tions' most socialistic agencies are
would serve a sufficiently useful pointed to U. S. foreign aid
and I as taxpayers, had our
money
money to spend it. We need only ask how
purpose to justify the work that spent for such things as dress suits taken
away from us to loan to a any program of
foreign aid, largely
would be involved." Again, quot¬ for Grecian
undertakers, public Communist government, and it is with our
money, can win us friends
ing from the Congressional Re¬ baths for Egyptian camel drivers, Communist; then when there
ap- if others disburse it.
How it can
port: "I.C.A witnesses testified that a six-lane, 15 mile highway from
peared to be danger of a default confound our
enemies of our enethere
does
not
exist
anywhere Lisbon to the gambling and sum¬ on the loan, more of the tax- mies
benefit from it. How it can
within I.C.A, 'a single statement
mer resort of
Estoril, roads in Iran payers' money is given in a
grant bring maximum benefits to the
covering all the reasons why a that lead nowhere and an Italian to cover the service to the
Export- American people if the American
particular aid level for a partic¬ village in which no one wishes to Import Bank.
Also, our taxes will people have no control over it.
ular
country was decided upon live.
henceforth help indirectly to
pay
The last gimmick that these buA committee of 13
at the time it was decided upon.' "
republicans some of Bdlivia's old loans in de- reaucrats
And still another quotation: "Sub¬

mously approved

have

and 17 democrats this
year

sequent

expenditures

of

these

a

unani¬

59-page report
quote, "Loose,

by the foreign government
subject to little or no supervi¬
sion and accountability."We'd be
in fine shape if we

detailing and, I
slipshod and unbusiness-like
spending of more than $250 mil¬

tried

—in Iran"

sums

are

that

to

our

run

savings

banks

way!

On

3 this year I testified
Foreign Affairs Com¬

June

before

the

mittee

of

lion—a quarter of a billion dollars

alone, just one country,
declares, "it is now

and this report

the

House

I

and

impossible

with any accuracy to
tell what became of the funds."

told

old

bonds.

to

have

of

them.

One
As

a

are

Government

our

other

varieties

of

tortion and inaccuracy. The Read¬
ers' Digest, limiting itself to the

Bank would

be

Marxists,

published statements of I. C. A.
records proved the falsity of that
I. C. A. accusation.

tion."

Dishonesty

and

According 'to

,

General of

the

the

Controller

General Accounting Office, there
is - gross mismanagement,
waste
and extravagance and

actual dis¬

That Sunfed Organization

that the $1,539,000 of
There is another dangerous aswere still
sitting untouched
a
proposed
organization
Calcutta, I. C. A. approved a spect;
called
S UNFED,
Special United
request from its office in India
Nations Fund for Economic Defor another $4 million worth of
velopment. They talk about what
silos.

Another aspect of
foreign aid is
that Washington maintains we're

silos

cioing it to win frindes and allies

in

and to defeat the Communists^
First of ail—and we whoop it
UP—that if under-developed areas
are
industrialized, standards of

In

Thailand,

road

Republic and the

For instance, while

admitting

Mismanagement,5Waste, Extrava¬
gance,

places.

million
States

is known

demonstration

of

United

efficiency in peaceful

the "infra-structure."

as

200-mile asphalt
You've
as
a
$6)2

a

undertaken

was

insisted

that

trialized

labor

countries

in

the

should

indus-

finance

foreign aid for the so-called backward

or

undeveloped countries,

Playing the Commie's Game
In

other

words, through our
ignorance of what is

complete

Communist

policy and the basic
Soviet plan, we have been financing the Communists in their plan,
We have proven successfully that
_

,

,

We

cover, and I quote,
financial risks than ac-

>

same

to

now

quote, but both Lenin and Stalin

these "loans" would be

-

Congressman Meader of dis¬

same.

take your time

time at my disgosal, I have failed to speak about
such items as charity beginning aT
"greater
borne; the neglect of our definite
ceptable to existing institutions." obligations in the
Ryukuyu archiThat is to say, the International
pelago and the trust territories of

state that

unwilling and unable by law to
Congressman Meader, to whom
Perhaps we can judge it best in handle these "loans."
These new
I have referred, and Eugene Castle
the fact that one of the
I wouldn't appropriate another red
leading "loans" will be made only when
in
his
book, "The Great Give men.in the Government
Sou
centime until this situation
declared financing cannot be
obtained from
Away" tell of 'a $128,000 cow barn
had been thoroughly cleared un.
just a few years ago that the Boii- other sources.
in Lebanon to demostrate to farm¬
vian Government was much more
I wouldn't permit these bureau¬
Actually the trick — and, as I
ers living on $100 a year or less
radical than that of the Chinese
crats to show the duplicity they
said, I know these bureaucrats—
what they should provide them¬
do in getting appropriations. They
Communist Government. We are I've worked
with "them—the trick
selves with in the way of cow
treat not only the United States
today—and I can't here get the will be to use the
$300 million
barns. Plows and tractors by the
figures again—it's very hard to that was
Congress but our citizens with ar¬
appropriated this year in
thousands are unused and rusting
dig these things out—hut,
rogance and disdain. Finally, they
as
order to get some surveys underaway on piers and warehouses all
nearly as can be estimated, we are. way a sort of seed
prevaricate and misrepresent the
over the world.
money and then
There are $1,539,facts.
today giving grants to Bolivia to go back to
Congress and say,
000 dollars worth of prefabricated
pay
between thirty-nine and " Well, we told these countries
The United States Representa¬
that
grain silos in India alone, plus un¬
forty-seven and a half percent of we'll
come
tive from Michigan, Congressman told millions
through with
still
of dollars of other
their budget.
All of this occurs more." That kind of
George Meader, published an ar¬ material and equipment which are
money—loans
when Government officials have
ticle in the April Readers' Digest unused or wasted
only to be given if it can be
away all over been accused of
persistent falsifi- proven that it is unavailable
describing several instances of the globe. Does this stop these
anycation as they repeatedly go back where else
I.C.A waste and extravagance in
—will operate under
I. C. A. bureaucrats running riot?
to Congress and say,
various parts of the world. I. C. A. Not for one minute.
"Well, just Gresham's Law, the bad credits,
They con¬
representatives on the Senate Rec¬ tinue to send more of the same give us another year or two and the bad gifts, will drive out good
we'll fix up this Bolivian situa¬
ord accused the Readers' Digest material
money and sound credits.
and
equipment to the
and

won't

made only to

is Communist, they
necessarily
Stalinists.
are Trotskyites and
Bank and Ex-Im

not

this

I

give-away programs,
is supposed "loans."
They induced the Secre- Lenin and Stalin were
right.
fifty percent tary of State -and
other
high have played their game,
result, you and I authorities in the United States to
In the limited
^

some

label

introduced

part of foreign aid is to

try in Europe—Ireland. All around
the world it is the

as

going to pay the service 011
these bonds to the speculators.
When I say that the Bolivian
are

year as a

man

much

as

Some of them

Tremendous Waste

them that if I, as a Congressman,
were
handed this kind
of stuff,

fault since the early 30s. Speculators have bought
up some of these

37

living be raised

and then the peo-

probably never heard of Pie will shun Communism. I ask
that. It's for roads, dams and other y°u to take a look at our own
public utilities of various kinds, country.
Where are the Com-

the Pacific; the fact that when
you
send capital abroad you've got to
send immigration with
it, just as

happened in this country; that top
much
speed in spreading these
huge amounts of capital is bound
to bring bad results—haste makes
waste.

All of the

military aspects

of this problem,

the use'of funds
thereon—I'm skipping over. I do
believe that compulsory benevo-

lance by the State definitely violates the Constitution.

Certainly,

global charity imposed by
is

never

a State
substitute for the Chris-

a

tian

principle of individual, voluntary charity or help,
I would sum up by
saying that
never have so many people, the
citizens of the United States, given
so much for so little.
To illustrate the utter failure of

this

program; last spring, in a
meeting at the Council on Foreign
Relations, I asked the head of I.C.A
how he could justify the
$60 bilHon
we
had
spent
when
the
French Premier had said it had
made enemies for us all over the
world

and

Secretary

the

President and

of

that

never

dire

peril

State
had we
we

as

had

the

declared

been

in

such

today. His
Braden, I don't
are

pur¬
reply was, "Mr.
suits. After 2Vz years the cost has It is now proposed that we turn munists?
They are in highly in- know—I don't know
the answer."
skyrocketed to $18 million for the money, two hundred and fifty mil- dustrialized centers enjoying highThere is just one answer to this
lion per year, as a starter, over to est living
first hundred miles.
rates. You don't get whole situation
for God's sake
Please don't forget that about the United Nations for them to them off in the mountains, plains let's
get back to the fundamental
In Italy, where
$3 billion of our money has been spend. I was so worried about it or hill country.
principles that made this country
to the Saturday are
used by a few recipients to reduce that I wrote
the Communists? _They are great.'
Let's, in our international
—

honesty in I. C. A.
from the

Let

me

quote

Genera) Accounting Of¬

fice of the United States Govern¬

ment, which as you know is only
responsible to Congress: "There
irregularities in aid to

have been

Korea involving defective mer¬
chandise, kickbacks and overpric¬
ing." That's what's happening on
of the hottest cold

one

we

war

fronts

have!

The

Controller

I'll only

and

goes

give

you

on

to say,

the head¬

ings in order not to take too much
time

—

that

black

markets

have

been created—speculation encour¬

aged—there's been collusion be¬
tween supplier and buyers, funds
supplied by the U. S. taxpay¬

all

He adds that the Korean Gov¬

ers.

ernment Agencies ignored our ad¬

that there have been mal¬
practices in commodity import
programs; that artificial exchange

their

national

own

debts.

What

about ours?

Of course, I'll admit that in this
brief period since the end of World
War II, we could not spend over

ago last August. They came back
nnd said. "You write the editorial."
and said, "You write the

$60

which I did.

billion

without

occasionally

happening to do some good. In a
few places, our grants and loans
have

improved health conditions
or irreg'ated some more land.
But,
even in these cases
where, not in¬
frequently, people were starving
to
death
before, now we have
made it possible for them to have

people,

more
soon

more

there will be
to

starve

death.

babies,
more

Too

so

that

people to

often, that's

the net result.

vice;

We forced

editorial,

I'll
of

only read you two paragraphs
it, I said: "Central control over

and

coordination

Afghanistan to get

a

$39,-

of

Continued

British

document
—the

Socialist.

Senate Internal

from

In

1953

country

ever

had

6

page

Foi

the

Security Subcom¬

mittee reported that a heavy concentration of fifth amendment

citizens

this

"Farewell Address."

Investment-Looming Policies

Assistance Board whose Executive
Chairman is David A. D. K. Owen,
a

least
coun-

aid

projects
and allocation of funds are mainly
exercised
by the UN Technical

American

loan from the Export-Import Bank
for $40 million to pay for a

in Europe is the
Communist? It's the poorest

country

In that editorial, and

removed

from

the United Nations staff after the

purge, were in David Owen's De-

partment of Economic Affairs.

Safety and Profit

price stability requirements of the
bank which
to

take

and

are

of

care

set

in

an

amount

expected

deposit

]oan behaviors plus

margin for human
0nd

part

which

goodly

a

The

error.

sec-

of the error
margin. It may
possible to include exact maturities where exact predictions

some

be

can

be

the

case

made
of

as

for

certain

example

in

construction

emphasizes

millions of dollars, no competitive

liq- funds. In the second category, the
"The
Special Adviser to the
500,000 dam and road for power,
uidity would be in U. S. Treasuries maturity structure will
depend on
flood control and irrigation. The UN Department of Economic Af- anci Federal Agency
Bonds, and volume and types of loans, long
fairs and the man who now reppower never could be developed.
the third where the income is imrange deposit and loan prospects,
resents the Secretary General 011
They didn't have any engineers
portant would hold all bonds other and money market factors. I
favor
that knew how to do it, how to SUNFED is Dr. Hans W. Singer, than governments.
We can get a
operating within a ten-year oba British
handle it.
subject, who in 1950 ad- reasonable balance between all
jective or less because maturities
vised the

bidding for power plants.

trol.

increased
demand on the
U. S. A. for dollars; that the ac¬
rates

cumulation
been

been

i

allowed

warehouses

n

to

rot.

has

There

has

systematic accounting for
counterpart funds amounting to
no

(Some¬

time ago we read in the New York

"Times"
that
one
great
power
plant had finally been started in

Korea but it

was

started under all

these conditions and without

any

competitive bidding.)
The Gen¬
eral Accounting Office also reports
ill-placed plants, poor or no plan¬
ning, S95 million spent up to June,
1956 for fertilizer which failed to

The

same

Insofar

with the
as

Flood

Con¬

the irrigation was

concerned, damming

these

Government of Pakistan

that

the

brutal

collectivization

and
of

disasterous

agriculture

i

which

meet

of

care

the

*

Since

requirewe

have

our

price stability
Russia in the 1920's was an examancj liquidity requirements in the
ters caused a concentration of salt
pie of very successful development first two
on the
categories then the third
fields so that the nomads
(You can remember category would be in bonds
who couldn't be trained to farm planning."
which
up

wa¬

between

anyway,

when they were induced
kulaks
try to do a little

1o take over and

Those

farming found the land salted and
unusable.

such

May

activities

comment

I
do

not

win

that
us

to

5

or

and

are

use our

15

farmers

million
were

of

the

killed.)

the fellows who want

money

The United

to

run

States has

SUNFED.

long

could be held if desired until

turity
need

,

On the contrary, as a re¬
French Premier said, "You
creating something akin to
hatred by the way you distribute
your aid."
are

fX

ma-

a
a

of

no

denials,

that

our

grant

aid

have

one

thing in

common

—

the

ten-year revolving fund seems
good way of getting safety and
Now

that

we

have

decided

on

the maturities

x.

cide

on

we must next de¬
the coupon of Treasuries,

the

objective Should we buy low coupon big
amounts for each category but our discounts or high coupon premium
next problem is to decide on the bonds? The choice lays with the
maturity
distribution.
For
the tax analysis of the bank, its presaverage bank, Treasury Bills and ent capital position and its recurCertificates are the practical solu- ring income base.
Big discount
now

tion for cash equivalent, because
be used for offsetting

Bills may
the

current

expectancies,

while

•

to enumerate all
 of the cases


are
likely to cause
depreciation risk
exIn the third category, in

order to get a reasonable
average
return, an even annual distribution of maturities on the basis of

,

^

have

that

having to be profit,

Maturity Distribution
We

beyond

excessive
posure.

practical

much

ever

considered for sale.

friends.
cent

without
for their

op-

posed a central spending plan for
postwar economic aid. Early in
the game we refused to go along
ress.
For all of this, just from
with the proposed
international
1954 to '56, we spent $833 million
development fund.
Now we are
over there, plus millions of dollars
heing urged by foreigners and
spent before. In Korea there are
Utter Confusion* in Bolivia
some prominent Americans to bethree or more separate programs
Utter confusion has existed with come the
largest contributor to an
operating at the same time in our
foreign aid funds in Bolivia. internationally administered fund
competition with one another.
It has been publicly stated, pub¬ which is the child of a whole
series
It
would
take,- literally, days licly printed, more than once with of UN-hatched
proposals which
accomplish any useful purpose,
inadequate staffing and slow prog¬

three

ments of the bank.

in taken

the Certificates will bulwark the
near

term

prospects

and

include

bonds give

a

of

return

at

current

relati^eiy low rate
the

and

maturity receives
rnnfinuerl

a

bank

substantial

nn

nana

?Q

i,onunueu, un page oy

The Commercial and Financial Chronicle

(2846)

8

The following statistical

Indications of Current

'

latest week
week

month ended
Month
Ago

§1,374,000

*1,742,000

1,846,000

6,884,200

6,849,500

6,831,020

COTTON

7,355,150

—Dec. 13

117,774,000

7,807,000

7,797.000

8,000,000

13
13
13
13

27,336,000

27,670,000

26,853.000

27,066,000

U.

2,167,000

2,447,000

2,026,000

12,896,000

12,074,000

7,592,000

7,618,000

188,845,000

188,087,000

182,478.000

177,037,000

29,904,000

33,503,000

32,418,000

13
13

159,275,000

31,283,000
163,145,000

171,940,000

139,610.000

59,034,000

58,839,000

59,867,000

43,145,000

Crude

8,360,000

13
13

CONSTRUCTION

603,036

617,838

647,298

*

528,911

570,575

Shipped

$226,549,000

97,323,000

114,409,000

$332,274,000
165,063,000

———■——-—J?ec- J3

168,291,000

112,140,000

167,211,000

146,504,000

Dec. 19

——

.

145,675,000

105,251,000

6,889,000

143,624,000
23,587,000

115,082.000

22,616,000

Dec. 14
—Dec. 14

8,910,000

*9,000,000

9,050,000

10,835,000

484,000

455,000

471,000

691,000

310,067,000

Linters

_

AVERAGE

Dec: 14

i

215

267

12,570,000

(COMMERCIAL

FAILURES

INDUSTRIAL)

AND

Dec. 19

Finished

steel

Pig iron

(per gross ton)

(per lb.)_—

—.——Dec. 17
Dec. 17
Dec. 17

—

(per gross ton)

PRICES

Electrolytic

(E.

M.

&

Zinc

11,953,000

269

276

5.967c

5.967c

5.967C

$66.42

$66.42

$66.42

$32.00

$32.67

$64.50

26.375c

26.425c

35.650c

23.100c

22.425c

23.325c

33.750c

Dec. 18

13.000c

13.000c

13.500c

*

Oct.

12.800c

12.800c

13.300c

10.500c

10.500c

10.500c

Dec. 18

10.000c

10.000c

26.000c

26.000c

26.000c

92.750c

92.750c

89.750c

25.000c

.:

..

92.61

93.27

91.00

91.62

89.09

99.52

95.62

99.52

95.16

91.77

98.09

91.19

90.77

88.95

96.23

82.27

81.17

■

88.95

86.38

94.56

91.91

91,19

89.37

82.27

95.62

94.86

91.91

3.13

3.08

3.27

3.49

Dec. 24

4.26

4.30

4.48

4.01

Dec. 24

3.73

3.78

4.03

Dec. 24
Dec. 24
Dec. 24

-

,

1

Dec. 24
DecDec. 24

Railroad Group Public Utilities Group
Industrials Group
COMMODITY

INDEX

Production

*

•

Percentage
Unfilled

orders

3.99

4.06

4.29

•;■

4.36

4.49

=

45,900,000"
8,800,000
38,800.000-

44,700.000

92.500,000 -'105,700,000

-73,100,000

97,300,000

87,700,000

-66,600.000

$525,300,000

$425,000,000

$3,413

$3,689

$2,666

517

515

544

672

759

985

$4,602

$4,963

$4,195

$31,741

*$31,742

22,371

*22,461

$54,112

*$54,203

$50,842

28,236

*28,638

27,14©

$31,073,000

$31,133,000

3?0,768,000

^

—•

PURCHASES

—

INSTITUTE

September
-*•

♦

•

r

'

,

i

—

OF

—'

5.00

5.09

SALES

SERIES—

dollars):

of

4.49

4.49

4.68

4.10

4.23

4.33

4.46

4.08

4.28

Total

3.94

4.03

*7

;

.

_____•

__

$29,45i:
•v

3.98

391.7

388.6

441.0

316,667

240,710

249,212

288.876

258,322

290,265

—

MONEY

IN CIRCULATION—TREASURY

of

As

PRICES

281,309

94

Sales

QS

Sept.

84

92

409,957

368,256

7'

107.81

108.22

farm

—

Crops-

L_

(OOO's omitted)—

30

RECEIVED

FARMERS

BY

U.

S.,

TURE— 1910-1911

All

:

DEPT.

DEPT.

INDEX

AGRICUL¬

OF

of Oct.

100—As

=

—

15:

products-

240

*

245

.

TRANSACTIONS

ACCOUNT

FOR

OF

231;.

22L

209

*

433,323

Commercial

416,158

109.76

vegetables,

Cotton

frcsh_^_A

'

Food

*

•

273

-

1__1

grains

—

221

-

___•

________^

Feed, grains and hay

110.13

Fruit

MEM¬

i

270

270

•

156

—

.

163

178.

'

1___

217

219

225
'

Other
Total

Other

Total

on

1,340,820

453,550

437,600

358,650

1,231,200

984,480

1,668,800

1,343,130

Nov. 30

431.530

269,070
55.600

426,100

417,280

201.500

Nov. 30

521,900

487,380

257.100

sales

transactions initiated

off

the

Nov. 30

■

278.98C

615.952

761,850

471,192

for account

149,450

127,320

99.32C

537,606

390,795

736,115

687,056

518.115

2.933,712

3,080,460

2,081.082

2,479.916

709,860

657,150

541,570

,

Total

2,512,005

2,186,086

1,576,775

3,221,865

2,843,236

2,118,345

,

2,607,438

SECURITIES EXCHANGE

—

(customers'

1.257,516

Nov. 30

$52,552,708

53,691,351

1,264,337
$52,566,539

short

total

sales

Nov. 30

.

1,070,306

1.045,486

851,266
27,829
823.437

961.682

$43,101,315

$43,988,883

$36,366,778

13.149

Nov. 30

_

shares—Total

sales

_

Nov. 30
Nov. 30

180,480

sales

Round-lot purchases by dealers—
Number of shares

297,490

284^930

1~80~480

Nov. 30

,

480,370

569,110

591,780

2~3~6~820

>

4,346,922

4,242,731
■87,207,308

48,215,442

'49,199,298

48.877,906

46.637,553"

44,710",314

21,405,705

40,928,945;

'27,871,412

26,301,264

-

:
•'
J—__________
.

income

to

:__

———2_"

charges

27,513,948'

-

___^_

4,298.168'

"542,662

4,652.167
'

fixed

3.71

EXPORTS

STATES

AND

-

-

'

2.70

-

-

4.04

CENSUS —Month

OF

IMPORTS
of

Sept,
-

•

—L

,

$1,541,200

:

$1,533,600'

$1,677,900-

-1,008,000

„

.

1,042,400

—as

of Nov.

omitted):*■-

(000's

30

face, amount

995,200r

.

>

that may -be outstanding

$275,000,000at-any time
:
Outstanding— " *
•
f
"Total gfose public debt__—=
274,746,849
Guaranteed obligations not- owned by-the-

$275,000,0ep- $2Wt0QC,Q00>

274,411,983*" 277.016,9531
114,563

93,828

$274,850,434

$274,120,055

$277,110,781

439,211

440,429

455,995-

$274,411,223

$273,729,625

$276,654,785^

103,584
Nov. 30

PRICES, NEW SERIES

—

U.

S.

DEPT.

1.018,030

1,054,470

13,036,520

Nov. 30

-

sales

14,054,550

880,600

666,510

13,189,350

9,667,900

11,230,140

14,243.820

10,548.700

11,896,650

-

.

_Dec. 17

118.2

*118.1

117.8

and

foods

91.8

92.1

Balance

107.0

105.7

94.1

90.5

79.3

*125.8

125-6

124.6

Dec. 17

125.8

UNITED

total

face

outstanding.,——,

amount

(Ilnclude6 959,000 barrels of foreign crude runs.

SBased

on

new

annual

•

capacity of 133,495,150 tons

as

ui
r
' as a&airist Jan. 1, 1956 basis of 128,363,090 tons.
(Number of orders not reported since introduction o
Monthly Inve&tmen* Plan.
fPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
one-half cent a pound.

above

of

.1

obligations, issuable
:
1

STATES

authority-^
GROSS

DEBT

GUARANTEED—i OOO's
As

figure.

n__—

103.0

95.0

under

88 5

107.3

Dec. 17

other than farm

92.8

Dec, 17

Meats
commodities

obligations

outstanding, public dgbt obli^
gations not subject to debt limitation

116.2

Dec. 17
__

public debt and guaranteed

Deduct—other

OF

Grand

products
foods_

Total gross

-

•

(1947-49=100):
Group—

commodities

•Revised

91,450,039-

GOVT. STATUTORY DEBT LIMITATION.

Total

:

Nov. 30

_

Total sales

All

121,565,967

sales-

Short sales

Processed

S.
-

,

557,640

ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS
(SHARES):
,

Farm

•

'

of

Exports.
Imports

U.

TOTAL

round-lot

*:

236,820

Nov. 30

Other

284,930

297,490

4,219,410^

52,562,364

4,355,867

——

,

'

8hort sales

All

taxes

stock__2

^(OOO's omitted):

sales by dealers—

—

63,816,036

___—

preferred' stock——•

BUREAU

$46,675,229

value

LABOR

income

common

Ratio

974.831

25,031

1,045,275

Commodity

114,798,028

charges——L

4,384,649
83,548.489

79,460,169

On

UNITED
20.056

Other

'

$68,215,531

1,025,430

WHOLESALE

22,026,753.

126,785.377'

—

•

1,303.670

Nov. 30

Total

income

;

On

1,305.322

Nov. 30

_

.Nov. 30

of

$103,758,624

19,446,439

87,933,138

______

:

Dividend appropriations: 7

sales

Number

from

for fixed

income

Federal

Customers' other 6&les
Round-lot

deductions

deductions

Net

purchases)—t

;

orders—Customers'

Customers'

Dollar

$68,486,699

119,337,992
4.539,964

I

CLASS

Income after, fixed charges—_——__

Other

COMMISSION:

Odd-lot purchases by dealers (customers' sales)—
of

$96,438,896
22,899,096

■

*

Odd-lot sales by dealers
Number of shares
Dollar value
Number

S.

IT.

.Depreciation (way ^ structure & equipment)"

'

EXCHANGE

ITEMS OF

*

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
DEALERS AND SPECIALISTS ON N. Y. STOCK
r

249

|

"

2.129,498

Nov. 30

.

—

167

290

income

Miscellaneous

477,940

NovTGO

_

—_

INCOME

railway operating income—
Other income

712,968

_No\&30
_

243

174

of August:

Income available

_

sales

sales

274

291

180

Net

613,648

Nov. 30

——

269

274

RYS., (Interstate Commerce Commission)—

of members—

_

:

eggs

279

SELECTED

516,236

160,510
575,605

Nov. 30

purchases

277
^._

=

animals

Wool

337,580

Nov. 30

—

sales

Other

95,800

Nov. 30

sales

Short sales
Total

Meat

Month

purchases

round-lot transactions

Total

Dairy products

floor—

Short sales

Total

236

58,600

Nov. 30

Total

259

323,200

70,100

403,500

Other

Total sales

Other

254

Poultry and
Nov. 30

Total

143
453

1,556,890

Short sales

Other

159

484

1,236,870

1,963,850

249

154

"Livestock

320,020

1,510,300

244

'

221)

483

the floor—

purchases

231

1

:

Tobacco

1,640,480

Nov, 30

_

—

1,887,080

Nov. 30

sales

sales

transactions initiated

1,914,260

Nov. 30

Short sales

!

Potatoes

in stocks in which registered—
Nov. 30

193 '

187

'

•

-.f.

Oil-bearing crops

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists
Total purchases

234

:

.

228

224

—

'

ROUND-LOT

21,391

4.39

394.6

Dec. 20

NEW

v'nillions

Nondurables

«

100

COMMERCE)

Durables—

.

,

3.99

5.00

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
AVERAGE

$171,800,000'

9.700,00G

•

$496,900,000

(DEPT.

.

1949

1,148

'

55,400,000

9,100,000
42,600.000

Month-of September

>•

3.87

4.33

254,413

—^—Dec. 14
Dec. 14

(tons) at end of period

'

.

$222,100,000

53,000,000

l

L„_

—-n

Inventories—

Dec. 14
Dec. 14

.

activity

of

1,458,,.

427

<

'

Dec. 24

—

:

2.425. r*

720
'

*

«

_______

MANUFACTURERS' INVENTORIES AND

ASSOCIATION:
—

(tons)

97

)

values

NUMBER

(tons)

-999

1,846

$202,400,000

endowments

INSURANCE

3.78

corporate

received

1,109

614

Total

96.38

Aaa

Orders

i

1.225-

585

-

1,461-

benefits

Group

97.00

Government Bonds

NATIONAL PAPERBOARD

•

_____

Industrial-

MOODY'S BOND YIELD DAILY AVERAGES:

MOODY'S

662:

••

.987

90.34

88.95

Dec. 24

Group

Baa

991

(1.000 pounds)—-

Ordinary.

95.92

Dec. 24
-Dec. 24
Dec. 24

:

Aa

168.138

1,344

,

31_

OF LIFE INSURANCE—Month of

88.11

92.20

Dec. 24
Dec. 24

,

of

Nov.

General

1,270.374

„

1,345,214,

omitted ):

30—

funds

588,776.-

DIRECT AND
$274,850,434

r

balances

:

$274,170,055

4,864,855

.4,306,587

,

$277,110,781

•■0,777,774,

vr




-

■215,984.

73,188

1.392..-

-

'_

(000.000's omitted):

Dec. 24

Railroad Group
Public Utilities Group

192,955-.'

107,384

INSURANCE—BENEFIT

LIFE

,

Average

"

J

196.384

-

'

r

Total

■

96.23

Industrials

•

-1,039

—

;

Policy dividends

102.875c

Dec. 24

corporate

■

"

;

,

.

.

Surrender
'

DAILY AVERAGES:

—

153,014'

13.500c

10.000c

-Dec. 18
Dec. 18

Government Bonds

Baa

252,096
199,332

14.000c

100.32

A

••

.143,620,.'.

*

;

153.882-

71,389

«•

—

Disability payments
Annuity payments

15.800c

Dec. 18

Average

U. 8

31—

Oct.

Matured

16.000c

Dec. 18

at

'

56.190

76,115

*

108,863

T_—_

(running bales)—

Death

-

26.300c

at

t

3.16,502.

,

'50,085

-

136,097
_

ance—Month of Septemher: •<

$63.04

$32.00

at

Louis)

170,814-1
346.400.

«-:.

*166,925

'

5.622C

at

MOODY'S BOND PRICES

A

'77,319

"

PAYMENTS TO
POLICYHOLDERS—Institute of Life Insur¬

:

S.

259,650

U

166,582

•

"

_1_ '

—'

Shipped
LIFE

Louis)

(East St.

124,424.000

*209.213

...

214

308

—Dec. 18
Dec. 18

—;

Aluminum (primary pig. 09fo )
Straits tin (New York) at

U.

249,383

Produced

12,220,000

(delivered)

(St.

161.282.000

299.826

31—

Motes, Grabbots, etc.

s

QUOTATIONS):

I.

Export refinery at
Lead (New York) at—
tZinc

197,188.000.

75,529,000

94,429,000

—'

_

Produced

260

142

copper—

Domestic refinery at

Lead

81,569,000

116,520,000 V

———-

-

Hull Fiber (1,000-lb. bales)—
Stocks Oct. 31
.t

PRICES:

IRON AGE COMPOSITE

METAL

94,699,000
130,973,000

&

INC.

BRADSTREET,

Scrap steel

DUN

—

12,315,000

.

'

169,249,000"

■"*

Shipped

Dec. 14

100

=

(in 000 kwh.)___

output

;

___

______'

Shipped

SALES INDEX—FEDERAL RESERVE

80,506,000

-

Produced

*

(tons)
(tons)

l*7,953.00<r,
241,749,000

'

/

(tons) Oct.

Stocks

Electric

,

(tons)

Stocks

31,422,000

64,027,000

114,715.000

142,25i,000

—_J_____

Produced (tons)
Shipped (tons)

$456,571,000

$265,614,000

1,959,273;

.223,092,000

—i.

(tons) Oc'tl'31—
Produced (tons)'
:

721.835-

418,191

108,132,000

—

L__

_

(pounds);*

Cake and Meal—

INSTITUTE:

ELECTRIC

31—_______

Consumption (pounds) LL

Stocks

Dec. 19

lignite

STORE

SYSTEM—1947-49
EDISON

Oct.

(pounds)

(pounds)

Produced
*

346,062

912,009

Stocks (pounds) Oct. 31——

,

1,572,928:

504,25c

„

645.936

Hulls—'"

—-—*?ec-

anthracite

DEPARTMENT

(pounds)

Shipped

ENGINEERING

—

(U. S. BUREAU OF MINES):

coal and

Pennsylvania

1.139,754

31—

"

.Dec. 19

Bituminous

(tons)_.
■.

Oct.

Oil—-

Produced

661,943

Federal
COAL OUTPUT

mills

(tons)

Stocks

y

716,652

555,292

municipal

and

Ago

of

*'

construction
Public construction

Year

Month

PROD¬

Refined Oil—

Dec. 14

Private

State

(tons)

Stocks

13,602,000

7,761,000

at

Crushed

2,418.000

13,118,000

(no. of care)--»Dcc. 14

construction

S.

SEED

COMMERCE—Month

OF

Received
A

NEWS-RECORD:

Total

COTTON

AND

Stocks

freight loaded (number of cars)
freight received from connections

ENGINEERING

CIVIL

Previous

>•

October:

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

SEED

of that date?

are as

Cotton Seed—

output

Revenue

of quotations,

cases

*

„

either for the

are

Month

94 3

—Dec. 29

(bbls.)
—Dec.
Kerosene output (bbls.)_——
.
—Dec.
Distillate fuel oil output (bbls.)
Dec.
Residual fuel oil output (bbls.)
Dec.
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
——Dec.
Kerosene (bbls.) at_
—.—
.—.—
Dec.
Distillate filel oil (bbls.) at
Dec.
Residual fuel oil (bbls.) at
—.Dec.
Gasoline

"

-

i

A«o

72.1

2,322,000

(bbls.)

to stills—daily average

'

Latest

(bbls. of
—Dec. 13

gallons each)

42

Crude runs

in

or,

UCTS—DEPT.

condensate output—daily average

oil and

'

Dates shown in first column

that date,

AMERICAN PETROLEUM INSTITUTE:
Crude

Thursday, December 26,1957

.

production and other figures for th#

cover

r

on

.

Year

*68.1

§53.7

..Dec. 29

';

month available.

Week

Week

INSTITUTE:
operations (percent of capacity)
Equivalent to—
Steel ingots and castings (net tons)
steel

Indicated

or

or

-

Previous

Latest

AMERICAN IRON AND STEEL

-

•

Business Activity

tabulations

~

.

Net

debt

Computed annual rate_

J

—

'

$269,985,579
2.893',i

$269.863",468 -$271.7533,007
-

2.8917)

2.642^

,

Volume

186

Number' 5702

.

.

The Commercial and,
Financial Chronicle

.

(2847)

$250,000,000 Chelan County, Wash., Public
Utility District No. 1 Revenue Bonds Marketed
Underwriting

loans.

would
superimpose
upon his thinking
regarding the
maturity distribution his analysis

usually

Ingen & Co., Inc.; Smith,
Barney & Co. Inc.; Blyth & Co.,
Inc. are joint
al1managers of a naval

tionwide

underwriting

about

390 members

a

'

xio-

drrrec^Lino\U7nte4nstShrai?

Dec. 24

on

which

The Public Utility District No.
1 of Chelan
yx
County, Washington,
,tb0ui«6wii,

adjust

voted

into

existence

1936

in

and commenced its electric

of-

issue of $250,-

an

study

Accordingly then,

determined
ties

he

more

versus
in

the

future

would

in

so

intermediate-term

^

^

amp

^ felt that

we were in

the

bonds

I>lete

.will be used to

construction

of

dam

andoperations

of

•

the

and

District,

hydro-electric
generating'"Properties of the District used
station of the
Rocky Reach projri" generally in the output and trans«ct in Chelan and
Douglas Court- mission of electric power and en1ies across the Columbia

River,bergy-have

peaking capability of
around 306,000 kilowatts.-

Washington,

at a point approxinately 474 miles from its mouth.
Scheduled to begin commercial
operation

on
or
about May
15,
1962, the initial stage of the projecU including the building oi tne
east
abutment, the earth cut-off,

and
approximately 75% of .the
spillway section, was begun in

Scptember,

1956.

bond issue

was

A

$23,100,060
December,

sold in

1956 to initiate construction.

First

stage construction has been
mated
by the construction

estien-

The-dam

-

|

a

and

hydro-electric

upstream

from

JWenatchee,

gineer to be $273,100,000 or about
$352 per kw. The dam will be
about 4,800 feet in length and the

spillway section will be about 7o0
feet long.
The power-house will
contain

the

The

District

Ifonf 0^hti?O™nl.Rfa«5h^'«iLSiiS £ontracts
130

aJL? fLf

air

and

180

miles

air

'

,

Interest
the

on

the bonds is
exempt,

opinion

all

present
under

of

counsel,

Federal

l'rom

income

taxes

existing laws,

and

rulings.

The
at

will

the- option

par, in

regulations

r

bonds'

whole

be

of
at

redeemable

the

District

at

time on or
atter Jan. 1,
1978, and in part by:
°n

any

any mterest

payment date

Since j know of

that

on

maturity

that is to say

has

entered

into

at

one

General

Electric

pany, Pacific Power &

Com-

Light Com-

pany, and The
Power

Washington Water
Company, whereby the eri-

tire production of the

discount

Treasuries

in

Rocky
Reach
project has been sold
of-service"
50

basis

for

on

a

a

"cost-

period

of

year

(to approximately the
2012), or until the bonds are

paid

income

will

not

be

provision made for their
re,irement- whichever ,s later.

extremes

have
0f

said

to

under

us

bonds other than
governments and
under current market

plateau.

stress

There is

ba"k„I3JiX5ihP$25'00?,tax- Agencies,
income bracket

Corporis and other
Treasuries

course, are almost too obvious.
the first case, there
may

ril'ic
a

fluctuations

period

and

in

best

come

it

many people to use
thev have become so

because

accustomed

in

that

be ter-

income

the

in

ency,"

In

to

second

balanced

jn

program

reviewing

selves

ments
few

and loans

may

simple rules
th^

own

as

shorter

-

tests

chnl,i

in

which

.

dustry

'

,,r

a

is

no

as

Xh?

+ifl

of

the

as

wil1 offer greater markets.

the

bine

wp

mn

bonds other than

Three, low earnings

Z

"A

in

^pp

+

thp

wp

sp1 l

in

same

standards

as

your

The

sum

where
with

know

up,,

vou

tlf

s

are

+^r?

•

maturity

onds.

There

of
is

the

also

you
and

bulwarks against

of huma^ judlSnf ^
youJ insrelation

to

are inevitable and, therefore, must
be considered to be factors beyond
control—is

our

that

our

direct

labor costs will rise-not decrease

am

sure

you

will

that

-and

units

other

-Lg avaiuepnin a^vlrse^rkeS
us

may

be

a™'"

of considerable
reIatl0n

t0

With Fusz-Schmelzle

tegnal

im-

ovel-a11

^A .3 tofof
P
knowsand

estimates^out

The high capital banks
may also
the opportunity if their loan
rtfolios are not

ave

excessively high

holding
Digitized for a substantial volume of
FRASER


(Special to The Financial Chronicle)

ST.
LOUIS, Mo. — Walter C.
McClelland is with Fusz-Schmelzle

24,

1958.

Stock

10,

ary

•lose

1958

of

of

to

the Company,

stockholders

business December
R.

M.

payable

of

6,

record

"eem

X? po^oiif itwoSd
to

me

to

that

a

banker would

So, faced with these facts, the
problem becomes
establish

maintain

a

basis

the

If
I

With Reinholdt, Gardner
<*"-.1 to

m emnmao

we

think

worry

can
we

one
so

of how

that

we

can

the
ef-

so

solve
have

concerning

necessary

this
little

the

for

problem,
need

to

economic

Assistant Treasurer
120

Broadway, New York 5, N.

Y.

OTIS
ELEVATOR
COMPANY
Common Dividend No. 205
A

quarterly dividend of $.50

share
been

on

declared, payable January

24, 1958,
ord

the so-called
ST. LOUIS, Mo. - Thomas W. If we solve it quickly, short-range
bond facts of life if he did not
Fitzgerald has become affiliated we could even look good • • ■ a
consider
the
happenings of the with Reinholdt & Gardner, 400 long-range, the industry win d
outside'world in the sense that the Locust
Street, member* of the just as solid and attractive mvesmoney market represents the out- New York and Midwest
Stock Ex- mentwise as it has been lor ma y

side world in the field of
stranger

changes.

per

the Common Stock has

at

to

stockholders of

reC'

the close of business

years.

on

January 3, 1958.
Checks will be mailed.
H. R.
New

FARDWELL, Treasurer

York, December 18, 1957.

Southern
Edison

California

Company

dividends

The Board of Directors has
authorized the payment of
the

following quarterly divi¬

dends:
COMMON STOCK
Dividend No. 192
60 cents per shore;

PREFERENCE STOCK,
4.48% CONVERTIBLE SERIES
Dividend No. 43
28 cents per shore;

PREFERENCE STOCK,
4.56% CONVERTIBLE SERIES
Dividend No. 39
28 Vs cents per share.

The above dividends

able

January 31,

are

pay¬

1958

to

stockholders of record Janu¬
ary 5. Checks will be mailed

from the Company's office in
Angeles, January 31.

Los

P.C. hale,

outlook for the chemical industry.

recognize

the

SWEARINGEN,

to

development,
merchandising

Janu¬
at

1957.

or

& Co., Inc., Boatmen's Bank Build- research, the
-n
memhers of the Midwest Stock forts that are

FJSXSSExchange'
refuse

'

fac(ors. We have considered
lavwior *? v na v v vviioiuvi vu

through
discount

one

Capital

problem in the industry—

difficult to attain.

hold down their current taxable
in order io fjet itioi*0 net
to

January

addition, the Board also declared an
ex¬
tra dividend, No.
184, for the year 1957,' <?f
Twenty Cents (20c) per share on the
Common

_

conie

taxes

business
In

and 1 think some of these factors

where
'going

of

divi¬

the close

of

«

utilitarian,

are

a

(30c) per share, being
Dividend No. 185, on the Common
Capital Stock
ef
this Company, payable March
l,
1958, to
holders of said Common
Capital Stock regis¬
tered on the books of the
Company at

\

+?.r^

j

different, and that

local bor-

Summing Up
To

same

+

rower.

h'

day

tbp

can see an increase in the volume

credit under the

on

Cents

Q

^ut' at the

Four, the stranger bor-

is granted

this

on

holders
close

six

S

acquisition

declared

to

the

Per-

npxt

per

registered

at

in"

maturity.
rower

1957,

Stock

Population
bothXtfnue to rLT,

^e,1

your

Th^n^
e

also

Thirty

30,

Company
27, 1957.

increased

o^v'pa^^^irrpnt^niinfup,

fter

Board
of

June

Capital

m-

wdr JJatl0I\a1

our
productivity by
man-hours will not innever make
any serious mistakes, crease as rapidly as labor costs.
Periodic Review
If there are two
!f^.tho higherco"pon b.?nds' bat : Once the objectives for the in- bank¥r" should words that every We are inevitably faced with new
vithm the range of so-cahed bank
be "encouraged'to labor negotiations at higher levels
vestments and i^ns have been set
take home
with him after
this than those existent today.
Of
^nVt ^
They should not be considered conference, they would be POLICY course, when we
speak of pro^ h^)ndicate a higher after Tv
stat!.c' ^ut subject to review pe- and PROGRAM, to be reiterated
tax yield
ductivity, it is apparent that in
riodicallv at
riodically at least twice a year
vear
o
over and over again,
maturity on the discount bonds
p»ctnhlishpH
the old, established linps advanceand m0re often if conditions
lines advance
either
han on the premium bonds. To
ments are becoming increasingly
change substantially.
_

The

ended

of

the
December

the

our-

should not force inclusion of bonds
of border-line credit or
excessive

sta(ltly before
bank, I

lativpfv Sh municipal >ields-)

n^ltp

year

Preferred

books

if.

_xr

1S tied m

fncome^nd

a

bal-

ho
be

feel

find

we

However, the growth

of

to

there
I can't believe that

"?T

maturity distribution. Two,
higher the local loans, the
be

begin

and

todav.)

rflri

invest-

I suggest

H
should

people

lost

(25c)

f
' ana oemanas are not
^eePin& Pa^e witn now capacities,

a

designed to fit

vour

is

situation

case

opinion from

my

and

all

future.

over

the bank's requirements.

and

may
1
if expenses are
relatively high,
hen a 52% tax bracket bank
may
r

a

tendency for

bigh savings interest costs,
why
buy some of the longest term

conditions,

range

ble

bonds

the

Cents

profits

the
said

the

In

not

.

ncome

for

of

Short Range Outlook
Treasury Bill rate's
As we look at the
industry
were
higher than longer term
short-range we appear to be on
rates why ndt keep all of
our
a plateau.
(Incidentally, the forefund6 in
Treasury Bills and be
casting industry has a descriptive
perfectly safe.; Likewise bankers term
for this

governments.

Safety and Profit
the

Twenty-five

vestment necessary for expansion,

exposed to
the past several years we have been asked
by
bankers when
sucb

or

years

give the municipal and state bonds ofrelatively high after tax yield fer attractive
opportunities.
(At
maturity. On the other hand, if this
point, will compare Federal

o

The current situation in the industlY has some peculiar problems> only because the industry
^as keen attractive profitwise and
investmentwise. There are many

775,000 kw the depreciation risk
exposure is
Hydro-Electric exceedingly high.
Safety and profit

Investment-Looming Policies
lost

menHoned

ex-

distribution
time have all

bond

rate,

Thave

which

of

being Dividend No. 118. on the Pre¬
Capital Stock of this
Company, payable
February 1, 1958, out of undivided net

dend

jecUves^thTones

investments

the

intermediate maturity

to

dividend

a

business

This shouldn t be true

AND

share,

Proflts.

who ha.

go

be-

a

continued growth
p"§et Sound Treasuries yielding 3'A% or better that when a
product hits a plateau,
g 1 Co™Pa"y> A.lu" and J"®* forget about the marke they call it a
plateau, of "despondCompany of America, fluctuations. The answers, of

-

tax

onfk

now

essentially

its

TOPEHA

ferred

heavy manuiacturing industry withminimum

short-term
investments such as
Treasury Bills and then at other
times have
nothing but long-term

lower should

apital gam at The 25%

no

had

and which will

heyday

Extremes

banker should

no

tremes

?nce'

For

has

predicted the future
it is my firm belief

accurately,

loans

Continued from page 37

an

m-

an^

ol

Portland.
in

°Wer

5 mmum
Portland

northeast

^I10+rf. to regaid the chemical
dusty as one that

ATCHISON,

SANTA FE RAILWAY COMPANY
New York, N. Y., November
26, 1957
The Board of Directors has
this day declared

station

being

as

and with

Against

sentlIPe^
entireiy

is

Adds

DIVIDEND NOTICES
THE

^micais.
•

e

La

BOSTON, Mass. — Richard A.
Ostroff has been added to
the staff
of Hutchins &
Parkinson, 27 State
Street, members of the New York
and Boston Stock
Exchanges.

D1
billion-pound

in the hope of
taking new competitors which, in the
of the pro- advantage
completely of the major total, is probably good.
Howjected Rocky Reach undertaking
swings in the bond market. The ever> profit margins have
slipped
will have a 775,000 kilowatt or
rjsks 0f being
wrong are too great and are sti11 slipping, again due
peak capability, and the total cost
and a program which
places the to high costs of development and
of the project is presently estiemphasis oil a sound recurring research and the
mated by the Construction Enhigh capital in-

generating

seven
generating units
approximately eact' having;
a. rated opacity. of
90...» completed as. ot Oct. la, 101,650 kwandovei load capabil1J,.7..,, Located about seven miles;,ity of
110,000 kw.

gineer

10*

Frank

(Special to The Financial
Chronicle)

Market for chemicals

:'vcome

Cautions

anOIHer
another

would be today-which,1 think

?PP°slte tr^nd the ^reverse weight-

ing"

resea^ch and
e*"

H.

—

with

now

Hutchins, Parkinson

?F?F paAn*s wd*
*s so^*
i13, fime we will have again

bond prices,

me.

6-10-year-Treasuries

arately. from all other properties consistently

com-

the

VP

watefsy™

a

^thin^we 'Ian"/18 a"d
we can foresee,

is

Smith,
Co., Pioneer Building.

Hue &

progress has been

using

PAUL, Minn.

Proshek

made™

™«tal|nishes
solvMts

Vl'eaiea
created

For ex-

sub--^el:5-year Treasuries
.

bonds
NWov
r_

^

declining trend of

"

tems! -Notable

probabili-

hi<; mitliritv ctriieinre

A

(Special to The Financial
Chronicle)

ST.

Chemical Industry

he

as

With Smith, La Hue & Co.

Outlook for the

turn

either
less of short-term

or

9

pciae
r *

underlying £&

Hie

determine the action of the bond

utility
operations through acquisition in
000,000 Chelan County, Washing-, July;,.
1948,- of the electric
ton, Public Utility District No. 1, transmission and distribution
sys5%- Rocky Reach Hydro-Electric teiif'
of. Puget Sound
Power
&
System Revenue Bonds, Series of : Light
Company in Chelan County
1957, due July 1, 2013. The bonds' Properties of the District used in
are
priced at 100% and
accrued-distributing electric energy at reinterest.
:
' •
v tail- to-about" 16,000 customers are
vNet proceeds from.the sale of
operated and accounted for sepfered

He

also

market.

was

long trends
im-

would

*

syndicate

relatively

an

on or after July 1, 1962 from certain specified funds, plus accrued
interest in each case.

Van

of

in

and the Federal Reserve
is

BIyth & Co., Inc.

J.

J

money market conditions.
He
would realize that
markets move

of about 390 members offering 5% Rocky
Reach Hydro-Electric System
bonds, due July 1, 2013, at a
price of par and accrued interest. Joint syndicate
managers
are
Haisey, Stuart & Co. Inc.; John Nuveen & Co., Inc.; B. J.
Van Injfen & Co., Inc.;
Smith, Barney & Co., Inc., and
Halsey, Stuart & Co. Inc.; John
Nuveen &
Co.'Incorporated; B.

Continued from

of

group

39

He

December 19, 1957

Treasurer

Financial Chronicle

The Commercial and

.

.

Thursday, December 26,1

.

J
Government

BUSINESS BUZZ

from the Nation'*

„

g-1 \ JTkgg
jfJL f IIM/, ,A Cr fA

Capital

today.

[This column is intended to
fleet the "behind the scene" iii
pretation from the nation's Caj
and may or may not coincide i

-y*

the "Chronicle's" own

ying is the biggest

poultry
and
eggs, crop residues, forest prod¬
ucts and new crops.*- f *

single source

in the United
of milk
averages about $5 billion a year.
Although the industry is con¬
income

farm

of

Senator

centrated in certain areas, par¬

cooler climates,
out of every three

and

about

keep -at

2,000 cows or more.
recent

In

years

consumption 5

with produc-:
tion.
As a result the govern¬
ment, under the support price
program,
has stepped in and
bought billions of pounds of dry
skim milk, butter and cheesor-

has not kept pace

Washington

howl

rose

in

announced
would be cut to
a
minimum, effective April 1,
1958. The announced reduction
is 75% of parity, the lowest that •
the law will allow the Secretary
Congress

When

of bills in¬
troduced by members from the
there will be dozens

to

use

to

»

current demand
for
streamlined
cooking and
housekeeping.

tritive values

Com¬

Industrial

to

Manpower had
be released from the farms

to

run

industry

great

because

created this necessity.

Ever

manpower;

emphasis has been on teaching
the farmer to produce more and
on

more

each

acre.

going on,
industry has been spending bil¬
lions of dollars a year to re¬
search agriculture out of a siz¬
While this lias been

part of its market. Today
half of its market for
sueli
natural fibres as cotton,
wool, flax and silk, lias been
able

nearly

taken

over

by synthetic fibres.

Two out of three pairs
now

made

or

par¬

replaced
the paint

ses

was

Commission re¬
port
added, "if even two or
„three of the more important of
these
products can be really
perfected and sold at reasonable
prices, there will probably be
"In fact," the

no more

milk surplus.

outlets for casein

whey

Industrial

and for whey

products

would be

important, but could be sig¬
nificant nevertheless. The major

with

dairy

cost.

For

.

problem

is

products in connection
support prices began in
each

until 1941. From 1941 through
small amount
dry milk in 1947)
dairy products were bought

non-fat

for price

support purposes.

ginning

with

year

is

here

purchases of

1948 (except for a

no

1949

resumed,

ceeded

2.5

except the

Be¬

purchases

and .have

billion

to

pounds

ex¬

each

often,

.

going out of business, but

those

who

are

remaining

Wants

Capehart

Expand

to

are

ing is primarily an adjustment
to take
advantage of techno¬
logical changes..

.

Man's

Program

Research

Capehart, who made

Senator

great fortune because he was
one of the first men to develop

2

phonograph, says
people must real¬
living in a scien¬
Science has increased

Bookshelf

electric

the American
ize that

we

tific age.

are

agricultural production by leaps
and

less

with

bounds

and

acreage

before
American consumers had

have

bountiful

so

less

Never

labor.

supply of whole¬

a

nutritious

tasty,

such

produced

for

so

food.
farm¬

abundance

playing such a
tremendous role in production.
With

science

says he and
will press for
passage in Congress in 1958 for
more
money to spend
on re¬
search for increased industrial

Senator

30

Capehart

colleagues

uses

of farm products.

million

a

year

is

marked for this type

tural research.

Meantime,

1951 and 1952

Foreign Exchange IV
Mor

New York

ket—A discussion—J. P.
& Co.

Incorporated, 23 Wall

New York

8, N. Y.

Practices—J
Subcommittee
Housing of the Comn^ttc

Second Mortgage

Report to the

and Currency
Printing >

Banking

Oi

Government

many.

Only $16

Washington, D. C.—paper.
—
Telep
American Telep

World's Telephones

statistics
and

—

Telegraph Company,
New York 7, IS

Broadway,

; j

—paper.
Your Investment

American
now

ear¬

—

Leo Barn

Coil

Research

Larchmont, N. Y.—$3.

of agricul¬

'

the

various farm

TRADING MARKETS
Botany Mills
A. S.

Campbell Co. Co

J

Fashion Park

Indian Head Mills j
United States Envelop

/

Morgan Engineering
National Co.

I Carl Marks & C.o. Inq
.

„

FOREIGN SECURITIES SPECIALISTS
20 BROAD STREET

•

NEW YORK 5. N. Y.

TEL: HANOVER 2-0050

TELETYPE NY 1-971

Riverside Cement

Flagg Utica

j

LERNER & CO.
Investrqfint Securities

getting larger and larger. This
dramatic change in dairy farm¬
-

Business

operating this year.

Another thing the indus¬

declining about 4% a year since
the late 1940s. Some dairymen
are

=

de¬

try is undergoing is a techno¬
logical change. The number of
farms with milk cows has been

velopment, including hundreds
product uses that promise
fruitful results.
The products
dealt with include cereal grains,

for purchasers
to arrar
payments to suit their invidua! preferences in the light
their own projected cash positio

million special school

ers

year

-

the $75
milk pro¬
gram.
Thus, the dairy support
program will be one of the most
expensive
support
programs
addition

in

is

Never before have so few

1933. Purchases were made

of

$300 million.

around

cost

to

This

riddle-1The cost price squeeze
is the problem most frequently,
mentioned by producer groups,
which { is ' pinching
hard and

of

fruit,
nuts,

dairy

their

in the Department of
Agriculture as a multi-sided

of

tree

Government

sible

scribed

important report earlier . this
year.
The report outlines 106
broad fields of research and de¬

sugar,

"

pected to serve the dual purp<
of coordinating a portion of 1
Bank's borrowing with its d
bursements and of making it pi

1957, is expect¬

began April 1,
ed

layed payments, giving them a s
lection of specified delivery da
between April 15,1958 and Jan.
1961.
This
arrangement is €

this marketing year which

some,

Program

Cost of Support

were

The

-

months' study the
highly

byproducts,

have

ly-operated cheese factories are

to supply it.,

created

task force brought out a

vegetables,
edible



dows, and many

in¬
dustrial use, the raw material
lias to be so cheap that United
States producers cannot afford
obstacle

in

and anL

num¬

"out
win¬
longtime, fami¬

creameries"

of

ber

"regrettable

closing their doors.

,

cotton,; oilseeds, meat

overall decline despite

make it.

diana, and Senator Carl T. Cur¬
tis
oi
Nebraska... Nearly 200
scientists and agricultural lead¬
ers
from
all sections of this

After eight

an

the fact that a

year.

dairy price support pro¬

The
gram

the

production rise does not

The

of business" signs in their

oils.

country served as members
the task forces.
'
:

high

record

new

a

perfect in flavor and all other
desirable characteristics as mod¬
ern science and technology can

and varnish bypasses

Commission

that

level has been attained.

indicate that the dairy industry

and

for Farm Products

year

is in

less

by legislation sponsored by Sen¬
ator Homer E.~ Capehart of In¬

mal

of

milk, frozen con¬
and spe¬
cial butter spreads, and cheese.
Each should be made as nearly

Industry
The

in* the
such
dried whole milk,

development

be

consecutive

fifth

the

will

centrated milk, butter

which

detergents,

linseed and other vegetable
New T

there-,

says

This was up 2.6
1955, and
pounds from 10
from

billion
years before. Production in 1957
is expected to show a 2 billion
pound increase over 1956. This
8

up

;

.

pounds

dried low fat

natural fats. Much of

by

use

billion

possibilities

large

products as

Two-thirds of the soap has been
do not

Commission

further

substitutes.

leather

of

tially

of shoes

wholly

.

great. Total milk produc¬
1956 was a record 125.7

as

billion pounds.

consump¬

;

in

tion in

Possibilities

The
are

.fat

'

:

:

Other

abundant.

since the release of

are

tion.

be

realistically to

toward- limiting

has increased 20%

war

duction.

The increase in
next decade is expected to

the

food trends as that

such present

L.

by Earl

the last decade.

or

Conform

(5)

of

cow

per

enhance nu¬
and flavor appeal.

(4 )'Maintain

of the dairy

described

production in the face of de¬
clining per capita consumption
of dairy products.
Production

convenience in

the

with

line

is

Butz,
Assistant
Secretary of
Agriculture, as the rising milk

refrigeration, which in

Increase

(3)

Agricultural Products
research insists
that the demands of society are
responsible
for
the
farmers'
plight. In bygone-eras food was

wars

In the past
two years purchases have been
the equivalent to around 5 bil¬
lion pounds or about 4% of pro¬

Korean

facet

third

The

riddle

itself is costly.

after months of

never

afford

in some cases
the need for

or

eliminate

constant

Synthetics Root of Problem
mission on Increased

minimize

even

plight of the farmer whether he
grows wheat, cotton or has a
dairy herd.

Uses

purchasers of bonds of this ni
issue the privilege of making <|

perishability so as

(2) Reduce

present levels. The support
price announcement further
points to the big dairy riddle in
this country.
The question is:
Can it be solved?
Dairying is
but
one
facet of the overall

President Eisenhower's

Phone's Ringing!"

Views of Earl Butz

the

Bank, in addition to offeri
for regular delivery, w
extend
to
certain
institutioi
bonds

milk.

more

most rec*
States mark

the

include:

incomes can

with lower

dairy states calling for mainte¬
nance of dairy support prices at

three

the

in

As

issues in the United

(1) Development of new and
improved food
products that
will reduce cost so that people'

reconvenes

Boston

Stanley & Co.
,

to reduce the prices.

headed /jointly by T
Corp. and Morg

banks,
First

pand the market for dairy prod¬
ucts. It maintains that the big¬

gest opportunities

l£

licly through a nation-wide sj
dicate of investment banks, |
curities dealers' and
commerc

plight of cotton and other
crops will come before the new
Congress. The Commission de¬
clares there is much that can be
done through research to ex¬

support prices

bonds will

Beginning in 1968 a sinking fli
will be in effect calculated to *
tire 50% of the issue by maturi
The issue will be offered pi

the

Benson

Taft

Ezra

The

bonds.

non-callable prior to Jan. 15,

question is *
the spotlight,

in

immediately

to sell before
1958 will be

proposes

year

dairy

the

While

of Agriculture

Secretary

when

Bank

middle of January

Opportunities

Biggest

surprise J
when a mighty
the dairy states /

Developn

(World Bank).,!announced yes
day (Dec. 25) that the new is
of $150,000,000 of bonds whichj

t

culture.

Therefore, it was no
in

agriculture

on

and

construction

in its economy,
expresses confidence that if a
small percentage of the money
now being spent to take acreage
out of production, and devote it
to research, it would greatly aid
in alleviating the plight of agri¬

least one cow.
Some dairy farms have as many *
as

Eugene R. Black, Presided
International Bank for j

the

The Indianian,
home state leans heavily

whose

two

$150,000,000 of Bot

industry.

ticularly in the
farms

views.J

World Bank to Issue

Capehart
predicts
that a crash program of research
will open new horizons of op¬
portunity for both agriculture

The farm value

States.

1

x^otatoes,

white

WASHINGTON. D. C.—Dair¬

of
was

agriculture compared with oi
15%

,

70%

about

1820

American.. labor, force

on...
A

current fiscal ye

during the
In

Behind-the-Scene Interpretation*

will cost the Fede:
nearly $5 billi

programs

^

;

tQ Post Office Squaro, Boston

v~'V/
a-:

r

*'Vv';^tOj
Jiit,

■

i

tf"

9, i

Telephone

Telet}

HUbbard 2-1990

BS 61

~