Full text of Commercial and Financial Chronicle : December 27, 1956, Vol. 184, No. 5598

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

"2^
,U lin CHwl I V

a

w

to sill
•

■

■■

v.

..,

.

.

DEC 2 8 1353

.

■

Reg. IT. 8, Pat. Office

Volume 184

Number 5598

EDITORIAL

New York

v

Minister

end to the
;

•

•

J

Nehru

,"cold war."

of

India

Supply of Cuirency
And Economic Activity

for

calls

He is impatient for

ginning at

By WALTER E.

an
,

be-

a

;

least of some measure of dtearrnament among the nations of the earth. He wants '
an end to the domination of one
country by an¬
other:
He is sure in light of recent events that
"world opinion" is a force strong enough to hold
would-be aggressors in check. The greatest prac¬
tical difficulty, he finds, is a lack of confidence,
the one country in another;

1. * Senator

.

Humphrey,'

,
'

■

<

up some sort of international agency
..to deal, with pressing Middle Eastern problems;

.

-

He would also like to
drawn* from
withdrawal

we

- numerous

should lose

suggestions
no

time

or

in

in¬

show¬

ples and
order

more

(either directly: or through
agencies) to various peo¬
than one section of the" .world in
-

proposals might easily be cited,
they all, whether wise or not, are clear evi¬

lems.

or

must rest upon

f. '

on page

be

fixed ratio

/supply' of

fundamental principles

■.

.;

-

.

done

—

political remedies bntthe
our ordinal
political structure. Finds this is not a hopeless challenge,
particularly in view of our awareness of government's

restoration of

Government, spelled with

ment

to

since, (according to

But

volume

of

source

tend

do

omni-competent

as

realm

f.
V

Mr

of

/

_

•/

j

from any ^political body.
have framed a number of

material

the

world.

NOW

'money
E.

Spahr

this "natural order" has an

undertakings in

our

on

20

page

dealers and

♦An

;

Continued

.

of

San

Commerce,

26

Chamber

Francisco.

investors in corporate

registered with the SEC and poten¬
"Securities in Registration" Section, starting on page ,30.
of issues

on page

before the California State

by Mr. Moreell

address

\

'j

w

Ben MorecB
;
that world. We agree that
autonomy and an integrity of
laws we

-

increasing 'money Supply.' They do not
suppose that any serious difficulty would be

complete picture

a

know

we

of

REGISTRATION—Underwriters,

IN

And

that by conforming to those
are better able to cope with
Walter

<

of the uni¬

laws which set forth the workings of

r
_

not

verse,

Scientists

/

'•

Continued

afforded

acknowledge

We

science.

.

to

seem

other

that the rules pertaining to this realm

Jr

-

their theory, at

business?and

Govern¬

in

We
and regular
nature, the

the impersonal
operations of physical

supply,' it is possible to enlarge the
volume
of business
by the simple
expedient

to regard

important areas of natural law.

are

that

all knowl¬

of scientific law,

respect

gen-

capital G, has become our

a

Socialist Paradise.

the Soviet

we

ment

v-

least) there is a,fixed ratio between
the

the

as

issue from the Governor

suppose

:

.

.

democracy.

a

although they have already gone that

-

„

in

even

gold-plated calf. We revere it as the fount of
edge and all benevolence. It is true
that we do not as yet look to govern¬

M

Many of these learned

tlemen -seem,

religious dimensions built into

coercive nature

far in

#

-

.

Mr. Moreell proposes not

ated.

and the vol- ;.

being

of American Revolution in order

dissolve the voracious government monster we cre¬

to

$

field day."

a

orderly universe of natural law which cannot he
we should retrace our steps to the

an

undone, and that

the

between

money

business

of

i

SECURITIES

DEALERS

some

22

are

powers and misplaced faith in gov¬
accomplish all sorts of social, economic and
even moral
purposes is decried by Jones & Laughiim
Steel Chairman who advances the premise that this is
enormous

ernment to

every

editorial, states,

having

now

securities

tial

Growth of

■

'

total

these problems.
effective policy
certain facts about

Continued

"y;.

»■

things:
•
;
"Money economists — that is ecoriomists who talk glibly of 'money

•

any specific solution of
do feel, however, that any

program

Monetary Policy
u

*

full realization of the seriousness of

offer
We

on
f

; among

to

diversity of ideas
subject attest to the difficulty of the prob¬
For our part, we should not venture to

the

i

;

4

supply' and insist there is or; ought

the current world situation. The
on

t.

and (3)

The

ume

Other ideas and

a

'

f

other

to

dence, of

;

w

dollar spent by government
should have a certain multiplier effect upon national
income. Dr. Spahr points out that while business expan¬
sion can cause currency expansion it does not mean the
latter can induce the former; shows currency supply and
purchasing power depreciation can become so great:/
"that productive activity stagnates V . ."r and warns/
efforts to forestall proper economic readjustments taay be
beyond control of our monetary and fiscal managers. '

field:

quell, unrest and quiet men's minds.
Many such suggestions envisage "loans," but most
of them would without much doubt prove in the^
end to be gifts. "/.•'*
;
.
\
and

.

It," in The Commercial and
Financial Chronicle of October 11, points to a genuinely
important
issue * in the ^monetary

generosity

our

•

By BEN MOREELL*

The editorial, "As We See

of the international

one

/

troops with¬

against a corresponding
of Soviet troops from East Germany.

timations that

•

American

Germany

There have been

ing

see

•'

.i.

and prices;

would set

;

,

.

Copy

Chairman of the Board, Jones & Laughlln Steel Corp.

Widely known monetary economist presents demonstrable
evidence to refute frequently-advanced contentions that:
(1) a 3% annual rate of increase in industrial activity,
GNP, and National Income can be obtained by some
corresponding currency supply increase;. (2) there is a
close or controlling relationship between currency supply

influential Democrat,

an

Economists' National Committee
'

a

A Democratic Government

;

Vice-President,

Executive

.

SPAHR

Cents

How to End Coerciveness ill

The

As We See II
Prime

Price 40

7, N. Y., Thursday, December 27, 1956

now

State, Municipal

in

sate,

U. S. Government,

and..

••

'

?j

<*

:

UNDERWRITERS

Stable and Municipal

BROKERS

and

STATE

DEALERS

Securities

.

<

.

i

—
i

Public Housing Agency

MUNICIPAL

and

■

COPIES OF OUR

''

LATEST

■

■

Bonds and Notes

.

telephone:

HAnover 2-3700

BONDS

INDUSTRIAL
RAILROAD

CHEMICAL

PUBLIC
&

CORN EXCHANGE

^

TODAY'S INVESTOR"

UTILITY

ARE NOW

FOREIGN

ON

SECURITIES

BANK
BOND

the FIRST NATIONAL CITY BANK

Burnham

DEPARTMENT

30 BROAD

"POCKET GUIDE FOR

MCMBERS

ST.,N.Y.

15 BROAD

NEW

YORK

and
ANO

OF NEW YORK

Company

STREET, NEW YORK 5, N. Y.

Members

120

•

Dl 4-1400

Bond Dept.

Teletype: NY 1-708

New

York

Stock

Exchange

Chase Manhattan
bank

BROADWAY, NEW YORK 5

34 offices from coast to

TELETYPE NY t-22S2

CABLCl COSURNHAM

THE

Harris. Upham & C-

AMERICAN STOCK EXCHAK3ES

DEPARTMENT

BOND

AVAILABLE

REQUEST

coast

Net Active Markets Maintained

To

BANK

T.L. Watson&Co.

AND

ESTABLISHED

1832

Dealers, Banks and Brokers

Commission

New York Stock Exchange
American

BONDS & STOCKS

SECURITIES

Members

INSURANCE STOCKS

CANADIAN

CANADIAN
Orders

Executed

Canadian Exchanges At

CANADIAN

Stock Exchange

On

25

BROAD

STREET

DIRECT

NEW YORK 4, N. Y.
tt

FIRST

£ctd/U0tdt

•

BRIDGEPORT




TO MONTREAL AND TORONTO

Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE

COMPANY

VDAI LAS

WIRES

•

PERTH AMBOY

Class A Common Stock

ovw

115 BROADWAY

CHICAGO

request to

Trading Dept.

Doxehox Securities
Grporatioti

IRA HAUPT&CO.
Members New York Stock

and

40

Exchange Place, New York5, N.Y.

other

Exchange

Principal £xc/ionfu

111 Broadway,

N. Y. 9

1 NORTH LA SALLE ST.

NEW YORK

upon

Unlisted

(Room 707)

DEPARTMENT

t

Corporation

Analysis

All

Regular Rates

Teletype NY 1-2270

•

Knox

Teletype NY 1 -702-3

I

WHitehall 4-8161

WOrth 4-6000

Teletype NY 1-2708

2

(2794)

The Commercial and Financial Chronicle

The

Brokers, Dealers only

For Banks,

A continuous forum in which, each week,

Through ALL of 1957...

take

advantage of the full
facilities, large

they

•re

be regarded,

to

as an

offer

ALFRED R. HILL

Armco Steel

keep in
mind that our private wire sys¬
tem
speedily
reaches
hanks,
brokers and dealers throughout
the nation
providing primary

tinue

the

amount

of

Over the past several years Arm¬
has been a consistent leader in

percent

New York Hanseatic

percent of

j

expanded

1920

60

•

Private

Wires

CHICAGO

SAN

to

its production capacity

compared

to

40%

for

the

boils

up

capacity

compared

has

been
$160,
industry cost of

the

to

.

.

anticipating
the

rope

each

Vl»

York

8tock

American

1*0

S

TEL.

REctor

2-7815

produce

of

course,

gj

5

assets

new

earlier

the

of

lower

steel.

This,

depreciated

capital

This

years.

steel

purchase
required

can

represents

valuation

for

assets

ton

$300

capacity. At

values

one

and

costs

low

in

market

of

productive capacity
should impress investors with the
growth

potential

About

Trading Interest In

half

employees

American

unions

Furniture

Bassett Furniture

iob

blows

shares.

Armco's

35,000

not

walk

national

a

off

steel

t^e

strike

of

about
the

Lax

latest

headline

for that matter

or

three

of

Armeo's

of

COMPANY, Inc.

dispute between

a

agement

and

operated

Armco

has

materials.

entitled
ments

to

ada.

$190

-

,

/

ca¬

the

■

to

sales

and

con¬

report

healthy gains in
earnings.- For, while

Purex will soothe investors' ruffled

it is much

nerves,

of

Labrador

project

Company of Can¬

Mining

million

Company,

project

owned

good

consists

of

the

pellets

taconite
Estate Liquidations

rock

at

processed
rate

a

than four million

tons

from

of

a

In

addition,

Specialty

Armco has
ownership
interest in several companies min¬

SfreenaemxiComparui

ing

direct

Mesabi

ore

on

the

Range.

Armco

ESTABLISHED 1929

shipping

has

Tel. HAnover 2-4850

full-fledged

as

"Pu¬

"Beads

ing

PRIMARY MARKETS IX

&

j

Block

Quoted

Offerings Wanted

steel

new

virtually all the
products and proc¬

in

new

the

field

Within

of

flat

the

rolled

including
the
continuous
rolling mill and the continuous
galvanizing processes, have come
Armco's

Last and most important, to
my
manage¬

True, Armco's accomplish¬

ments required

capital, labor, and

research, but it has been top grade

CAPPER & CO.
1

Exchange PI., Jersey City, N. J.

dE riders on

2-6570—H.Y,: Dlgby 9-3424

Teletype JCY 119




management
record

so

has

outstanding.

velops its

own

far-sighted
and

that

made

Armco de¬

leaders

program

of

through

of

teamwork

a

incentive

promotion from within.

spirit

the

and

■understanding is evident

The

human
to

any-i

Soap

a

than

of

recent

dovetailed

sum

Established
Home
•

111

catch-as-

with

the

-

Office Tokyo

Brokers

&

1897

—

70

Investment

Broadway,N.Y.6

Branches
Bankers

COrtlandt7-5680

con¬

which

years

On the

Firm

company's

basic operations to form

write

Securities Co., Ltd.

Purex's

the

information

or

Yamaichi

con¬

the

parts.

with

Call

;

to

acquisition field, it
noted, have had nothing

common

tional

consolidations

Trading Market

Maintained in

inter¬

an

do,

CANADIAN

Purex's

—

DELHI

PETROLEUM, LTD.

acquisition should materially raise
per share earnings, as most of the

Common Stock

irrational consolidations do not.
True

enough,

sales

volume has

been expanded partly through the

acquisitions and is

now

nual

$50,000,000,
$9,000,000

a

WISENER

*nd

COMPANY

as

rate

of

some

against

less

decade

ago.

now

of

than
But

much

pretty

at

an

Purex's

LIMITED

73 King St Wost

—

Toronto, Canada

lines

the

run

an¬

gamut

the

cleaning agent field and
change -entails
important

this

niargin-iattening

auvan*

Since 1932 Specialises in

tages.

Until

recently the company

licited business from its

i.e.,

wholesale

from

Witn

so¬

customers,
and

grocers

VIRGINIA-WEST VIRGINIA
NORTH and SOUTH

broadened

counting
fourth

Dutch

10%

some

of

the

toilet

total,

soap,

and

laundry

bluing, and various industrial
label

and

cleansers and private

would

question

that

seem

these

to

be

little

products
from

an

standpoint.

They

are

low

items
is

and

used

one

in¬

all

or

more

daily by
population.

every

directly

fully

reflected

in

increased

sales for

cleaning agents. Further
growth is provided by the nation¬
wide

trek

the

to

suburbs,

since

this trend multiplies
washing ma¬
chines
and
dishwashers
which
consume

cleaning

and

agents. Because of their
and

their

essential

bleaching'
cheapness

nature, clean¬

are

after

other

sizable

be

foul.

market

economic

Then, their

makes

them

very

ideal

for

advertising and pro¬
campaigns and, as indi¬
cated below, this last characteris¬
motional

tic

has

been

very

effectively

ploited by the Purex

t'J During the.first
its

which

ex¬

in

der

its

and
own

name.

The

sold

un¬

first-de-

amount
or

to

some

roughly 25c

And

there

which

contribute

food

a

are

>

.

■F. W.-

CRAIGIE&CO.
RICHMOND, VIRGINIA
Bell System

Teletype;

RH 83

Telephone 3-9137

can¬

to

A 84
t

■.

/

many

wr.o

sold

sales

other companies

the

to

bigger

brokers

handled

addition

Purex

lines,

ly, held the
Unueriithe

Furex
new

volume

system,

down.

tue

on

-:Ofl

other hand, there is complete con¬
trol over the sales force and con¬
centration

dealing

Purex

upon

with

chains

items

wholesalers

which

should

in

and

stimulate

volume materially.
Since transportation is a sizable
item for a company such.as

cost

the

had

management

time sought additional

ufacturing

capacity

to

for

man¬

serve

its

growing Eastern markets. Through
the

Manhattan

Purex

gained

reasonable

City..

disinfectant

MUNICIPAL BONDS

and this diluted effort undoubted¬

some

the manufacture of the household

change-over

benefits

The

previously
products of

management.

itself to

this

taxes.

also

earnings.

two decades of

history Purex confined

bleach

CAROLINA

brokers.

precisely measured, but

as

Purex,

broad

from

estimated to

some

fair

come
or

subjects

primarily

food

force. The savings

own sales

ing agents enjoy relatively stable
weather

82

$400,000 annually,

are

vestment

them

its

not

inherently attractive
cost

up

resulting

share

items.

There

its

chains,

lines ana in¬
approximately onecreased
volume,
however,
the
aggregate sales,
"Old
Cleanser," representing company was recently able to s-. t

for

of

demand,

research.

thinking, is the part of
ment.

Inquiries invited

one

year.

steel,

from
-

of

each

years,

significant

INDUSTRIALS

Bought - Sold

30

esses

leadership, develop¬

average

product
past

LOW-PRICED

MINING, OILS,

an

to

the

some

and

continued its

greater

appear to be stirring due
improved Japanese economy.

now

For current

created

has

through

important prod¬
synthetic detergents ac¬

are

member of the
This
universal market, of course, means
that population growth is

a

remaining at practically
stationary levdls for three years

contrary, Purex acquisitions have

liquid

research program since.. 1910, when
built the first research labora¬

it

STOCKS

Dutc''-

promises to be

supermarket

of

had

in

tory in the steel industry. It has

31 Wall St.. N. Y.

lines

original
in

Old

Manhattan

ucts

more

year.

of

O' Bleach." Other

commercial

ore

bleach

under the trade name,

"Sweetheart"

iron

sold

rex," and in the dry state

pacity. It is turning out high-grade

SECURITIES

to "like

reason

household

and, disinfectant

jointly by Armco and Republic
Steel, is now operating *t full ra¬

OVER-THE-COUNTER

offices

after

Manhattan

defy rational explanation.

than sim¬

more

anodyne—as evidenced by
share earnings increase of

that there is

•form

supplies

company
is
the ore ship¬

of

the

Reserve

the

,

of

for

71%

The

of the Iron Ore

BLOCKS OF

to

10%

from

91%

at

ample

TWXLY77

We will buy

the

recession year of

pacity compared
industry.
raw

man¬

and

Purex

During the Purex best."
'
1954, the
profit
;
Roughly one-third of total sales,

men.

the

of Magellan or
related, smoothly functioning or¬
Okhotsk, Purex Sfeems ganization. In addition to
boosting
to
remain
largely im¬ sales volume, as even the irra¬

cause

At

branch

our

JAPANESE

Strait

to world events and to

an

to

of

destined

per

for

addition

solidations

the

wires

division

catch-can, higgledy-piggledy

common

mune

ply

shares

in
Ernest

tinue

a

Cleanser

Cudahy Packing Com¬
130,000 shares oi Purex
stock plus $253,000 in cash. And
last July, Purex exchanged
133,-

should be

Suez,

the

Sea

Direct

for

siderably

well be prescribed. Re¬

about the

Dutch

pany

moves

the

MY 1-1557

Birmingham, Ala.
Mobile, Ala.

the

of

Corporation, Ltd.,

gardless

Old

the

times

stock may

HAnover 2-0700

purchase of

the

from

whole which

tranquilizer

Exchange
Exchange

its acquisi¬

Cleanser

these

Purex

launched

Stock

St, New York 6, N. Y.

New Orleans, La.-

fundamental

more-,

tion program'with the

The

mind.

as

de¬

laundry bluing "Blu-White."

few

investor's

such

synthetic

York Stock

American

16 Rector

"Sweetheart" toilet soap, "Protex"
toilet soap, and a dry

which

parlous

and

Members

deodorant

have -affected

peace of

a

Soap Company, manufacturers of

recent

In

second

000

additional large gains in prospect
over the longer
term, we believe

company

a

steel

major plants, including the largest
Middletown, Ohio, not a pound
of production has been lost be¬

Lynchburg, Va.

Appraisals

of

do

called.

minor

.

Suez

at

Industries

Life Insurance Co. of Va.

LD 39

The

30% in the last fiscal year, to say
nothing of a further rise of about
50% anticipated this year.
With

is

Commonwealth Natural Gas

STRADER anl

of

belong to independent

and

when

the

a

of

cost

investor

an

about $75

to

||

Exchange

BROADWAY, NEW YORK

for

tg

Exchange

of

market

stocks

HIT-

Stock

capital

ton

today's

ftfcpONNELL&fO.

international

one

and

a

of

the

was

tergent, "Trend," in 1947, followed
by another ("News") in 1952. A

these

—

but

over

present

for

New

industry is

the next 10 years
will cost $600 million a year, at

Since 1917

often

upheavals

.

the

The growth the steel

SCRIP

and

wars

market

in Central Eu¬

of

significant that Armco's cap¬
expenditure cost per ton of

$200 per ton.

&

of

armies

.

this policy

introduction

when Purex

another.

or

over

.

.

are

now

RIGHTS

from

rhubarb

parture from

departure occurred in May, 1955,

the

Bought—Sold—Quoted

Members Mew

...

'

,

LAX

days

are

when

cringes

ital

Specialists in

industry.

.

Steiner,Rouse & CoJ

con¬

Corporation, Ltd.

These

most

HUM

every

will

Ernest

—

Lax, Research Dept., Hill Rich¬
& Co., Los Angeles, Calif.
(Page 2)

years as a lead¬

march ,in the
Middle
East

capacity rose to 5,950,000 tons
on Jan. 1, 1957, and will reach 6,222,000 tons by mid-year.
It is

Principal Cities

have

Ltd.

Louisiana Securities

ards

com¬

a

finally dries

Its

FRANCISCO

I

Armco

steel

1956, the company's ingot capacity
stood at 5,150,000 tons annually.

Teletype NY 1-40

•

assets,
that

industry as a whole, and its
growth is continuing.' On. Jan. 1,

Exchange

Broadway, New York 5
BOSTON

%,

such

•

ERNEST

Purex

Purex Corporation

Dept., Hill Richards & Co.,
Los Angeles, Calif.

alarums

steel

Steel Corporation—Alfred
Hill, Partner, Hill & Co., Cin¬
cinnati, Ohio (Page 2)

with -Armco

With

through the

Research

as

sales.

Armco

nor

invested

on

Since World War II, Armco has

Associate Member

PHILADELPHIA

earnings

capital and also in net earnings
a

WOrth 4-2300

of

be,

to

contact

of

in the

er

income.

earned

co

Stock

bination

Although Armco stands eighth in
the steel industry in steelmaking
capacity, it is running fourth in

markets in oyer 400 issues.

American

having

management.

Corporation

year,

—

120

Alabama &

Their Selections

sell the securities discussed.)

to

confidence

trading problems

Established

intended

not

are

one

Partner, Hill & Co., Cincinnati, Ohio
Members N. Y. Stock Exchange

traders.

Corporation

Week's

Participants and

R.

(The articles contained in this forum

Over-theCoiinter

during the coming

of experts

group

advisory field from all sections of the country
participate and give their reasons for favoring a particular security.

trading
department
and
long
experience we offer professional
Whatever your

different

a

This

Forum

fin the investment and

Try "HANSEATIC"
And

Security I Like Best

Thursday, December 27, 195(

...

70

facilities

such

cost,

miles

purchase

ideally
from

at

a

Quotation Services
for 42 Years

at

located

New

MahhattaAb Soap's

plant is

cility

Soap

.Over-the-Counter

Yorii:

National Quotation Bureau

major
Established 1913

250,000-square foot fa¬
Bristol.

Pa.,

Continued

which

has

46 Front Street
CHICAGO

on

page

39

New York 4, N. Y.
BAN FRANCISCO

Number 5598

Volume 184

The Commercial and Financial Chronicle

...

(2795)

3

INDEX

Immediate and Intefmediate

Articles and News

Future Business

Prospect

The

—Walter E. Spahr

By AUGUST IHLEFELD*
;

Noted banker

v

City

Savings Banks Trust Cmpany, New York

President,

/

for the near future continuation
trends; cloudy intermediate outlook

of basic current economic

A HAPPY NEW YEAR

- ■

—BCn Moreell

TO ONE AND ALL

Cover

Immediate and Intermediate Future Business Prospect

credit expansion continues; and offers an
evaluation of the prospects for the pharmaceutical industry. *
Mr. Ihlefeld depicts the strong role played by capital outlays; describes.factors prompting present credit squeeze and inevitable demand for more borrowing; outlines possible- develop-. £:r /

-

Democratic Government

a

"

if inflationary bank

/

Cover

IIow to End Coerciveness in

in prospect

sees

Supply of Currency and Economic Activity

'

'

3

Drive

carefully

—and

.

—August Ihlefeld

'*?

this

won't

you

-

year

obsoletef

be

.

..

'

_

-

ments that might cause a recession; and opines that return to'
easy money may not suffice to check a recession as it did in

;
r

►i

cial

costs,

)

...

American

The

is

economy

the

income

national

and

1956 draws to its

year

»

close.

finance expansion.

last

have

ments

'

'

the

.—Elliott

••

accelerated population
growth and rising living stand¬

1947-49,
the
was

will

year

another record year

With

for American

automobile

sales

and home building headed downr

with

credit

getting

tighter, the prevailing view then
was that, at best, 1956 might turn
out to be our "second best year."
What, we may ask, pushed the
upward

economy

once

plant- spending

of

celeration

January, certain trends
aroused doubts that this would be

American

STRATEGIC

Today and Tomorrow

MATERIALS

12

LIVINGSTONE
14

V.

Questions About

OIL

Oiyt Monetary System

.1

Bell

*

14

*

J.F.ReilIy&Co.,Inc.

*

*

Members

Bache

L.

Looks

1957

at

18

—

1

out

new

Wires to Salt

so

i

(Editorial)

Bank and Insurance Stocks.

Business

efficiently and economically.

Competitive considerations
keep up with

(4)

expanding capacity

^vospevows

8
8

Investment Recommendations

.Dealer-Broker

A tfcimi and

39

cutting costs through installing

or

more

To

up-to-date facilities.

date1,

Einzig: "Soviet Gold

Sales"-..

19

.____

these incentives to ex¬

pand plant and equipment spend¬
ing have proved so strong that in¬

From Washington Ahead of the

dustry has been stepping up such

Indications of

setback?

outlays

The

answer

is

to

be

found

in

field of business spending.

the

The

this year by

nated
new

economy/has

domi¬
upsurge of

been

an

plant and equipment expen¬

ditures of unequalled proportions.

Last

year,

such

spending

aggre¬

gated $28.7 billion. This year, it
is expected to exceed $35 billion.
Moreover, the rate of business
outlays on new plant and equip¬
ment has been stepped up briskly
each quartef/'fn this final quarter

steadily. There is no in¬
dication as yet that the upward
trend
of
such
expenditures
is
coming to

spending

issued

of

bear

cant

is

trend

upward

is

There

down.

indicator

no

HA 2-0270

Observations—A. Wilfred May

5

Direct Wires to
.

19

Our Reporter on Governments.

Philadelphia * Chicago * Los Angeles

signifi¬

Reporter's Report

Our

35

—

near-term

prospects for our economy at this
time than projections of capital

Public

25

Securities

Utility

Railroad Securities

outlays by business.

—>—

18

—

Gulf

.1956, such expenditures are at
a
$38 billion annual rate, which
is over $9 billion higher than the
1955 annual total.

Plant

The

and

Equipment

magnitude

the

of

Boom

rise

in

new

plant and equipment spend¬

ing

by:

*An

American

business

this

address

Mid-Year

•

by Mr. "Ihlefeld before the
Meeting and* Eastern Section

Meeting of the American Pharmaceutical
Manufacturers

City, Dec.

12,

Association,

The Problem of Financing:
The

Securities

in

Now

equipment spending this year has
given rise to a major financing
problem. This problem has been

simultaneous ex¬
pansion of inventories of some $6
billion in response to rising price
and wage trends. The consequent
upsurge
in
business borrowing

aggravated by

a

dominates :'hrid

will

continue

25

Security Salesman's Corner
and You—By Wallace Streete

The

Market

The

Security I Like Best

The

State

.

.

.

.__i_

Continued

on

page

have

;

25

BROAD

Co.

Exchange

ST., NEW YORK 4, N.

B.

DANA

Park Place,

HERBERT

D.

i;

,

•

t

u

COMPANY, Publishers

2-9570

SEIBERT,

Thursday,'Dec.

Y.,'t.

27,

President

.,*<p

.

r,

Nashville

Boston
•




•

Chicago

Schenectady

•

^

*

*

'

matter

Possessions,

in

Dominion

States,

Territories and
Union, $60.00

of

Canada,

1-5

Glens Falls

.

.

state

Worcester
Other

Chicago

Offices:

3

HI.

.135

South

La

Salle

U.

"

Members

of
In

W" V. FRANKEL & CO.
INCORPORATED

S.

per

$63.00

year;

per

39

BROADWAY, NEW YORK 6

year.

WHitehall

Bank and Quotation Record — Monthly,
$40.00 per year. (Foreign postage extra.)
-

Note_Cn

the

fate

account

of

exchange,

the

fluctuation*

3-3960

1-4040 & 4941

remittances

for

be made In New York funds.

Direct

PHILADELPHIA

Wires

to

DENYER

k

In

for-

St.,. eign subscriptions and advertisement* muit

(Telephone STate 2-0613);

.

Request

Other Publications

.

statistical issue — market quotation
corporation news, bank clearings,
and city, news, etc.).

on

Febru-

United

Pan-American

Prospectus

Teletype NY
Thursday (general news and advertising issue) and every Monday
(complete

•

second-class

it,

-■

by William B. Dana

other Countries, $67.00 per year.

1956

records,

Albany

as

Subscriptions

.

Jessop Steel

Eng¬

•

TELETYPE N. Y.

•

C.

Subscription Rates

9576

..

E.

ai-y 25> 1942> at the P°st office at New
york> n. Y., under the Act of March 8, 1879.

York 7. N. Y.
to

London,

Company
Reentered

....

„

New

DANA

1956

CHRONICLE
Patent Office

„

WILLIAM

Gardens,

c/o Edwards & Smith.

Copyright

SEIBERT, Editor & Publisher

Every

TELEPHONE HAnover 2-4300

40

Drapers'

1

and

~

REctor

York Stock

Lithium Corp.

2

—

—r

COMMERCIAL

Reg. U. S.

25

New

Sulphur

United Western Minerals

WILLIAM

Members

*■

■

Revlon*

to

FINANCIAL

Spencer Trask

Sulphur

37

PREFERRED STOCKS

specialized in

r

4

land,

JFor many years we

*<JC

16

—

of Trade and Industry

1 Washington and You

New- York

1956.

»

Pan American

33

Prospective Security Offerings

Published Twice Weekly

r

-

.Ll_ 30

Registration

bulge in business plant and

The
;

40 Exchange PI., N.Y.

Teletype NY 1-1825 & 1-4844

slowing

more

the

of

&Mackie,inc

23

—

care¬

watching for indications that

the

36

capital

government

by

and other sources will
ful

Singer, Bean

38

News About Banks and Bankers

estimates

Advance

10

Funds

.Mutual

end.

an

News—Carlisle Bargeron

Current Business Activity

of

The

Denver

Mlc wish cucvyouc

17

Bookshelf

Man's

again, from a very high level, in
a
year in which the vital auto¬
mobile and house building indus¬
tries have suffered ar substantial
'

Lake City &

Cover

:___

Coming Events in the Investment Field

make it necessary to
are

Place
HE 4-3634

•

Regular Features
It

See

As We

products and to manu¬
existing products
more

rivals who

Teletype NY 1-4643

Exchange

Jersey City

21

much more desirable both to turn

facture-

Broadway, New York 4

.

capacity

new

(Boxed)

Purchasing Agents Optimistic About 1957 Business Outlook

(3) Technological advances,
spurred by record research pro¬

make

42

17

to

cost increases later on.

grams,

Salt Lake City Stock Exch.
Spokane Stock Exchange

16

DIgby 4-4970

Wrong from Top to Bottom!

avoid

Back in

and

Trade:

Gerald Loeb Previews 1957 Stock Market

-

and

exceed that of 1955 by about 5%.

ward

11

Failures in Pursuing Tight Money

/

Harold

(2) The rising trend of wages
material costs stimulates ac¬

August Ihlefeld

considered prosperous.
National income this

business.

AIRLINES

'

ards.

economy

10

.'

Facing Troublesome

arguments

key

and

.

RIDDLE

Growth

up

The long-range growth of
economy
is assured, based

the

when

Dynamic

—Rep. Wright Fatman

manage¬
found them

far

so

The

Travel

Federal Reserve

<

upon

years

Maintain

to

TMT TRAILER

9

__

—Ralph T. Reed

(1)

nearly 50%
larger than it
in

7

are:1

year.

industry is

was

CANDALE CORP.

!

1

Competition

WHitehall 4-6551

6

;

Better Investment

a

Dunlop___

International

that

stepping

for

STREET, NEW YORK

Economic

Business and Financial Forecast for 1957—Roger W. Babson__

strong. • Business

very

The output of
all

arguments

convincing.

larger than it
was

A§hforth___

of

•—Robert G.

plant and equipment spending are

3%

some

j.

New-Process
:

;

demonstrated

been

has

the

sum-

strike, will
be

It

de¬

steel

mer

Continuing

.■A Prosperous Textile Era Ahead—rjohn M. Reeves____

goods pur¬
chases and it has become so much
more difficult
to raise money to
•

spite the

and

all the more so because consumers

p r o d uction
year

Economy

Climate—Keith Funston

have curtailed durable

as

Industrial'

this

C.

Aiding the American Investor With

•

is nothing short of amazing,

year

Canadian

Into

Growth—A.

upon

reaching, new high peaks for pro¬
duction

WALL

99

; Telephone:

Looking

full consideration of the difficulties
i

5

Obsolete Securities Dept.

ambitious expansion programs without'
or.pitfalls, including finanwhich may lead to overproduction, and suggests
expansion caution.

be embarking

may

•What Electronics Means to You-^-Faul A. Just_

if needed to sustain prosperity. Warns some firms

role again
*

4

-

1953-54, but anticipates home building undertaking a dominant:

t

;The Beauty of Bank Stocks—Ira U. Cobleigh_____

SALT LAKE CITY

f

4

(2796)

The Commercial and Financial Chronicle

metropolitan

The Beauty' of Bank Stocks

dividend
you

actually

year

By IRA U. COBLEIGII

from

year-end

look

at

splendid

a

of

type

security

eral

not

tract

a

headline
lieve.

going to be
bank

on

stocks

might'lead

With

so

almost

the

as

14,000

a

thus

T h i

com¬

1 y,

r u

many

banks

function—to make loans.

it

would

d

n e s s

„

be

1948

to

of

again, loans,

bank

assets

Back

in

percentage
major institu¬

as a

in

of the

some

mind

without

sound

for many fine banks, that
percent¬

sound

in

short

so

piece;

be

a

but

there
■lew

would be 50%; and the
age would probably exceed
age

are

things
said

to

billion in loans and investments—<

about

general
in

completely
loans, which in the same time
interval have risen from $40 bil¬
lion to over $88 billion.

that
prove

topical. So having no
motive so ulterior as
seeking a
bank loan for ourselves, and not
being sufficiently
overcome
by
the generous

maker,

be

a

,Nineteen hundred
been

banks,
some

in

a

fine

a

and

and

for

the

Illinois

type

president

New

York

earning
ments

of

bank,

been

never

pre

moving

ahead

tions.

in

First,

have

several

for

new

not

been

and

rising

get

account

the

loan

"Reserve

today;

the

for

Bad

real

When

out of

down"

to

held

recurrent-type

normal

This
it

as

or

expenses

again is
since
rise again;

seem,

maturity

in

either

They

,

tend

to

offset

each

the years,

over

other,
in well

managed banks, the non-recurring
gains should prevail.

the

r

Something, too, should

Debts"

about

the

growth

of

be

bank

said

earn¬

ings.
J>

>

:

—

from bank shares under the

people have stayed

I

impression that they (the bank
shares, not the people),are rather
static
earners, and meager dis¬

i't' "i W..

BOUGHT

Lots of

away

v

SOLD

QUOTED

we

mentioned

about the

by

cash

their

net

331A%,

overi

dividend

ratio.

same

price of
performed quite

earn¬

and
their
distributions in

market

Offices,

character

whether

its

of

they

corporate

clients,

dividend, .J. .P.

Morgan

About

Rise

in

has

the
also

similarly.

50%

big

and

a

bank

National

York

is

City

payout ol between

55%

with

of

some

New

York

banks,

Guaranty

Sections for Homes

Trust

and

such

New

the
as

York

Trust

paying higher percentages,
and
some
of
the
more
rapidly
growing ones, Security-First in
Los Angeles, and
Valley National
in Arizona,
paying less. (Anotner
rapidly growing bank, Franklin

MORELAND & CO.

attractive

by

banking

via

route.

company

the

Irving

virtue

on
Long Island has had
policy of paying dividends al¬
most entirely in stock.)

I

Building

Branch

2-3855

you
DE

Office—Bay City, Mich.




Right

now,

finest* bank

DETROIT 26, MICH.
Woodward

in¬

nation.
notch

as
in
1946.
This year earnings have advanced

back to

Corn

1824

in

presents

Exchange
branch

with
above

$2

a

goes

$2.40

a

to

and

wonder

dabble in

the

the

bank
on

stock

is

yield

leaves

yield.

desocialized; since money
rates
are
high and look
as
if
they'd stay that way; since on a
yield -and
price
earnings
basis
on

record

-

you

have

in
a

you

can

78

a

can

price

get

on

a

4%

of only

of

some

stocks

in

the

America,
pdy

yield and

121/2

times

earn¬

of

on!

that

■

are

.

are

into

cut

Holi¬

production efficiency, concludes this
-

'

"

,

trade
.

Monday of last week the Interstate Commerce Commission
emergency increases in
railroad freight
rates
and
in

eastern

territory, 5%

in

western

territory and
southern ter¬

Commission

authorized

no

increase

protective service charges, it reported;

dfy refrigeration

and

'«>,

1

Domestic

(

.week

in

car

and

preparation

truck
for

the

Automotive Reports" stated

on January
1st.
formerly a part¬
Townsend, Dabney & Ty¬

.

Holding close to the

-

was

counted

at

on

production was pared 3.6% last
long holiday, week-end, "Ward's

Friday, last.
level, passenger

year-ago

152,588 the

past week

production

car

compared with

158,431 the

jweek preceding and

150,881 in the like period of 1955.
only Ford Motor Co.'s Ford, Mercury
plus Cadillac scheduled Saturday work
week, explaining the production decline.
"Ward's"

Lincoln

Haydon, Stone to

of

admit

Richard

Exchange,

G.-

McDer-

mott, member of the Exchange to

least

P.! McDermott &

»•.

•>

volume

total,

found

Ford

General

Motor

18.6%

Co.

Motors

at

Corp., at

32.3%
a;

Corp.
and

at

despite the major

last

American

combined 3.3%.

pared Chrysler Corp. to 16.8%
the week before, "Ward's" stated.

model share of the auto market

and

47.6%

[
''The statistical agency noted !that low price field cars
'making a determined bid to hfeld to their near-record

The

the
are

1956

appearance and

engineering changes in the medium price class.

Ford, Plymouth, Chevrolet; Rambler

partner in Peter
Co.

industry

past week from

February 1st, Mr.
a

week's

.Motors plus Studebaker-Packard
reduction in Saturday work

Hayden, Stone & Co., 25 Broad
Street, New York City, members
of the New York Stock

the

said

divisions

The

on

majdr

sure

motors; that oil
are completed; that the tankers
other plate users just as; im¬
not hamstrung.
"The Iron Age" de¬

—

was

is

excellent

on regular
plate tonnage

inter-territorially between eastern, western .and
ritories, with certain hold-downs and exceptions.
other

McDermott

dozen

crisis

extra

stronger. The reason is that freight car builders,
hampered by the shortage of plate and structural,
gaging their hot-rolled bar orders on how much plate
structural they get.
Holiday production schedules cut into finished and raw steel

they

The

partnership

a

tanker

before

5%

son.

will

oil

authorized

partnership.
in

that

be

day also will

White, Weld
Co., Ill Devonshire Street, will
James Jackson, Jr. to lim¬

ited

strong pitch to Washington official¬

insisting

are

authority.

admit

Mr. Jackson

a

impact of the

Even though the mills held these losses to a
minimum, the effect was to aggravate heavy backlogs
[and set
delivery promises for many steel users. The New Year

To Firm

ner

fast

are

charges of 7%

&

for

output this week.

Admit James Jackson

ings to get it. Nor is this 4%.all.
is legitimate reason in at

There

could

On

BOSTON, Mass.

their .battle

back

Happy New

bank

;,

.

..

one,

and

we

favor

They

users.

but it

so

May

lost

Over $2,000,000,000 worth of

While

come

that

have

attention is focused on i,he Jankers and fast-tax
ques¬
tion, the steel market is building up more steam and
generating a
few old twists. For instance, the hot-rolled bar
market is strong,
for

go

the

portant to the economy

kicking

neglected,

have made

minimize

clared.

We agreed to be brief. We have
Since bank credit has be¬

look

producers

steel capacity.

new

will be available when the tankers
will actually be needed and that

been.

shares

steel

on

channeled to shipyards that steps be taken to make
other parts are available such as boiler tubes and

,,

4.8%

a

been

are

good (Rockefeller manage¬

a

around

to

plate

why he should
volatile industrials when

ment)

has

program

sot

Steel mills

dom

earnings

dividend

allocation

out.

banking

Chase Manhattan at

up;

with

dividend,

4%

government

metalworking weekly

expansion projects are on file with Office of Defense Mobil¬
ization for fast-tax
consideration, but top policy makers in the
Administration have turned thumbs
down, this trade weekly points

shareholder might admire. At

trending

national

steel

and management combination that
48

Pressure

Other plate users will have to
tighten their belts another

or

Meanwhile,

corporate history,

a

formal

a

tax writeoffs

by apout 23%, so that the present
$1.60 dividend might be improved.
Chemical

1,049,500.

killed, steel plate producers will have to see to it that oil tanker
builders get the plates they need for new construction and
repairs.
This will disrupt regular
distribution of plate throughout the

a

Stook Exchange

1051 Penobscot

While

much

as

was

users.

the wail for steel plate

on

states "The Iron Age,"
Wednesday of this week.

on

gratiates itself because it is a
liberqj
dividend
payer,
paying
twice

handwriting is

purpose,

holding

Trust

of

for speedup of oil tanker construction
will channel plate from an
already-tight market to the shipyards. A formal allocation
pro¬
gram is out, but a "voluntary" system will
accomplish the same

National

-

Midwest Stock Exchange
Detroit

The

of

Bank

Bureau

construction and other activities. A year
ago the total

its $2.60 dividend on a price
70, the great potential gains of
the mergei*, and the
prospects of
moving
into
lush
surburban

branch

Total output

It also noted that insured
unemployment went up by 29,600 to
1,161,800 during the week ended Dec. 8. The agency said the rise
shared by most states and was attributed to
curtailments in

of

custom

high level set in
above; that of last

was

-

shares

dividends,

has dictated

i

&

of

now

time

7%

by newly laid-off work¬
by 4,400 during the week ended Dec. 15-to
264,600,
Employment Security reported. *
It added, more stable conditions in the
apparel, textile and
food
processing industries, which resulted in smaller layoffs,
were responsible. -A
year ago, the initial claims totaled 242,700.

•

First

them.

all

.

capacity,

dropped

the

in New York, it is still one of the
best.
"

bank

the

continued

rated

,

ers

at
$280
with- an
$11
dividend
yields almost 4%. The oldest bank

such

Output

■>

of

Claims for unemployment insurance

s

the

use

Co.

50

•„

102%

at

year

Although„

.

is a financial mink.
Operating
earnings, for
1956
should
be
around $25. Bank of New York

one

production

in the Southeast to 12% in the South Central States.
exceeded that of a year ago by 5%.

trust department. At 36*0 with

$10

any

this

11% less than

Many-producers hired extra-workers in an effort to-reduce
backlogs of orders for steel plates, structural shapes and tubular
/ :
,/ ..."
■■
v
.' ."
; Year-to-year gains in electric power output ranged from 2%'

,

and

week.

goods.*

with

_

now

of

was

..

scheduled

slight decrease from

a

previous

*

And Adjnst-A-Bilt Wall

Members

the

fractionally the past week, it

-

mills

reflecting

the

start

New

output

year.-

traditionalist, we ought
J. P. Morgan &
Co.,
a
bank
without' branches,
re¬
nowned .for
the
si;ze and elite

a

the

_

For

the

ago.'!

Steel

,

White, Weid Go. Will

increased

Unusual

Schools and Hospitals

a" year

.

banks

Movable Partitions for

truck output rose

earlier- that

Year

ings

Development in

the

banks—so

to

in

output of passenger cars from Jan. 1 to Dec. 15 of
28% below that of * the comparable 1955 period.

going to cite New York
here goes.
" '

were

cuts

was

of

some

pensers of dividends. Such opinion
is grievously in error. In the six
years
1950-5, major metropolitan

L A. DARLING CO.
New

and

why bank stocks should
favorably considered at this
time,- we
ought
now. to
carry
through on some specific sugges¬

is

sound

appraisal
of
bank shares should, for the most
part, disregard all non-recurrent
items, either fat capital gains or
losses, bookkeeping ..or
actual.

although,

off

slight

automobiles,
food products and lumber the
past week, industrial production
held
at
the level
of the
prior week; total output, however,*
moderately surpassed that of a year ago. *
•:
• %'
" ~ V
V ;
Scattered labor disputes somewhat curtailed automotive out¬
put last, week. The production of cars and trucks declined frac¬
tionally, and was 4% below that of the similar 1955 week. -Total

be

debit

might

notes may

to

Actually,

interest

and

higher

of which cases, an actual loss
may
never be established.

rates,1 bank loans are of better
quality. Thevmarginal' applicant,
corporate or individual, who
might have been accommodated a
couple of years ago, simply does
not

above

taxes).
as

be

or

direc¬

instance,

for

"written

standard

the bonds

above 4*4% today. Secondly, with
money

of

earnings
and

average interest rate on commer¬
cial loans in 1948 was 2V2%. It's

tight

merely

age

vorite—money—the upward slant
interest
rates
(the
price of

banks

funds

^market, the debit appears in Net
Earnings (but not Net Operating
Earnings which portrays the aver¬

of

Specifically,

the

by
only
48%
(and
not
100%) of the loss. If the securities

good.
Not unlike other
merchants, bank¬
ers
thrive
on
rising prices for
their
product.
And
since
their
product is the all-time world fa¬

!

create

Notwithstanding

reasons

declined,

have been sold at losses

duced

so

money) in 1956 has provided
dynamics to bank earnings.

showing the greatest decline.

taxable
earnings and hence the
capital funds of the bank are re¬

solvency,

and dividend pay¬

power

have

to

downstate

a

naturally the

are

yielding commercial loans.
this is done, the loss comes

generous

bank

up

as

and many

Santa Claus-

a

racked

Shorter term issues have

institution

over

or

ones

(the responsible officer has, I be¬
lieve, been referred to another in¬

stitution); and an
loaning policy by

Hasn't

decline

bonds; and those

perhaps for
rather sloppy check
cashing

Having ticked

tions. 'We

Industry

Index

Production

J

have

we

.

deposit or
loan
facilities,.; or patronize the
the"
transfer or registrar
services of

costly as you might
have
thought.
Banks
generally
don't go in heavily for
long-term

except

certain

bonds.

market

vere

filty-six

year

Time

whacking losses in portfolio?
Well, of course, there have been
some
debits here; but not as se¬

generates.

has

bonds?

shares

paid
dividends,
miss, for from 50 to a

—

mostly investment trusts in

bond

unprejudiced,
into the icy waters of bank
credit,
and the creditable earning
power
it

about

government

co¬

plunge,

we

what

(in the late 30's) when banks

were

impulses of the Holi¬

to consent to

season

Then
was

bank

sound expenditure
investment. * / ".'i

is due

to

timely and

day

is that it

assets

par¬

should

,

$113

billion, at the 1949
•year-end. But the important thing
about this impressive advance in

and

ticular,

U. CobUlfb

from

up

York

banks
Ira

■t

48%.

Totally, commercial banks in the
United States now nave over $160

a

bank stocks in

New

aver¬

Price

Auto

Business Failures

utility
shares.. Moreover,

Money has always been, wired for.

Today,

coverage
o f
all
(or most)

30%.

Food

and

Trade

Commodity Price Index

best grade

hrave

a

Output
Carloadings

Retail

State of Trade

better

or

hundred years. Money never goes
style and banks don't have
to turn out a model
every year!

tions

around

4%

a

out of

attempt broad

were

on

Production

Electric
•

been

industrial

in

and
eagerly reassumed
major historic economic

their

and

now

blithely

banks

U.

m a

cases,

have

in

S.,

has

with that of the

become, in

mercial
the

Steel

The

rewarding; and
that
observation
is
particularly
timely today when the available
yield
here
compares
favorably

quit^substantial hidden asset.

be¬

to

you

has

gen¬

buy today may, a
be 4.20% or better.

stocks

basis

too

frequently neglected by investors, in their consideration of
top flight equities.
■
This is

expect a
the yield

now,

bank

brief

to

that

so

Thursday, December 27, 1956

"Traditionally, purchase of good

Enterprise Economist
A

)3anks

boost;

...

.

'

.

'

"

-

•

>

1

and

Studebqker bit off

Continued

on

page

28

Number 5598

Volume 184

The Commercial and Financial Chronicle v

...

(2797)

\

5

/>

turizatiom and the

What -Electronics Means to Yon

into compact,
units;
plus more
use
of printed and
transistorized
circuits,
promise

space-saving
widespread

paul a. just*

\" A"
'•

i.

By A.WILFRED MAY
some special historical notes on //

science

-/*. The stock market's performance during this outgoing year
again served to highlight "the difficulty of timing, particularly of
the"

market as

to rationalize

proclivity

Mr.

Average

to close at thei 12-month as well

rose

all-time

ket

peak of 488, the business.and marwere
quite uniformly bullish.
J were
industry's prospective out-

..

forecasters

Pointed

to

,

General
Motors'
an¬
nounced plan for $1
billion outlays for ex¬
pansion;
the
great
public interest
in the
prospective offering of the Ford stock; for¬
eign aid: and election year political spend¬
ing. At the turn of the year the National In¬
exemplified

lays

concluded

performed.

1956

They will
the first,

volume

Wilfred

A.

May

encircling

known."

nation

'

.

.

.

has

000
h

miles

i

o u -r

orbit

the

n

300

some

the
surface.

now

insider.' ./

•;•:

The

A. Just

Paul

.

•«'"•»

•

■« •-

into

excursion

/

-

space

the Street's long-standing maxim "don't
sell on strike news," the market in early July did decline as" the
strike was made effective. At times of market rallying during: the

-

'the electronic science.-

'

.

Contradicting

preters.

J

,

,

*:

--

Liking Ike—Spasmodically

<

.

»

<

unravel

mysteries
about the upper ether. What those
/•answers will be, where they will
perhaps

since 'the

During the long nerve-wracking wait for •
his decision about running again the business and market com-

many,

;

only .the scientists

lead

patient and nominee—befuddled the fore- -

Ike-too—as medical

r

•

to; the

this experiment

will,; to .some* extent,
.•'some,

"
.

.

atmosphere ' which

outer

will emerge from

inventories were hailed by the market observers: - '
,

>

relating

.The. answers
earth's

settlement were fersuch-bullish "market
periods-the strike's benefit in cutting down excessive industry

applications of

advanced

senting

subsequent lengthy strike, prospects for a
retted
out and
emphasized.
And' during

.

fewer than

were

is

subject

whole

highly "technical nature.

casters and interpreters..

But

'

of

a

munity's" faith in him was typically indicated by such'headlines '
"President Eisenhower's decision to run would spur a business"

-as

<

postwar

now

serves

and there

life

tele¬

of

10,000 sets in the
and

year

million

37

some

are

sets

than 400 sta¬

more

tions presenting programs,

most of
morning. to late
at night/Consider, too,-that more
than $1 billion is being spent an¬
nually by advertisers for all types
of
television
programs
at
the
them

from early

national

level.

and. local

This

is

about 20 times the annual volume
of

advertising

television

seven

.

theory or speculation,
whether it be in relation to elec-

"terms

or

The

years

ago.,

impact

^

„

portable

of

,

only

;

vision sets,
a

in varied sizes, and to
extent the practical in¬

lesser

'tronics as a practical science or in
-constitute the
troduction of color sets into this
market's most important near-term factor." Thereafter, the actual •; relation to electronics as a field
year's market has kept , the pot
announcement of the decision to run 'again, made at the end'of ~ of investment. We have a multi¬
boiling in this segment of elec¬
tude of facts on which to base any
February, proved-to be a loud dud marketwise, with heavy selling tronics and
both these develop¬
•discussion of this highly dynamic
ments presage, greater growth - in
coming-iil.*- Similarly, Ike's reaffirmation of his candicacy on July
field, and it is facts with which I the near future/ Color television
12 excited no market response,- '
'r ; :
V,
'
Dealing with the final election results, market forecasting and ~ am sure you are'most concerned

"President Eisenhower's political intentions

boom."

-

again went awry.

comment
•

be

-at this

Throughout the year the expectation
Republican Administration would

;

good

deflation

for business; -and the: market qualms about Republican ;
were disposed of by one important forecaster (on June 28)

"anything other than f
Ike's cam- '
paign seemed to be sadly bogging down in September, the market'
-fell by 11%; and constructive market action was depicted as "wait- ing for the ballots.*' But lo, the news of Ike's actual victory, and
by near-record proportions, was immediately followed by a drastic
a

decline—not

market
1

reflected

in

was

centered

Non-Correlation

Between

three weeks and
After the onset of

tive
vital

Credit

Market

as

influence

market

a

acted

interest rate and tightening credit
non-uniformly

and

unpredictably.

in

cost,, was ignored as a decisive factor.
While the
bearish implications of the narrowing bond stock yield differential
were
cited
(as by an important Washington seminar)
in the
early part of the year, they became ignored as stocks rose to
new
highs. In fact, one leading commentator observed on April
26, after five increases in the rediscount rate, that this essentially
represented a bullish situation in evidencing a business-expan¬
sionary demand for funds by corporations and individuals.
And constantly through.the market's strength to September
the interest rate factor in
"interpretation" was supplanted by
bullish elements as "inflation" ("Long-run inflation causes busi¬
cycles

ness

in

which

D.

time.

become

56%

of

The

possible

and

a

participating

J.
.

502

'

near

■

as

measured by

.

If

-

4.

*

This is

the stock market actually

.......'




..

fell.

Continued

Only after.
on page

8

design

and

More

is news,

as

of

because

so

in

some

ouarter

million

is

times

nine

.

f

♦An

address

bv

probably

vice

in

think

.o

piece of electronic
it is, depending

a

But

electronics

to

serve

with

you

efficiency 24 hours a
day. The developments here dur¬
ing recent years have magnified
many times the value of this inand

speed

strume

n

communication.

of

t.

of electronics
micro-switches, relays, re¬

Through the magic
—in

peaters and a host of other de¬
vices—you and your home have
brought closer to. many more

been

and

people
Bell

he rspoke

his

parts
have

the

crude

the. world

of

Alexander

even

could

,

-

Graham

envisaged

first

when

message

instrument-

In

many

.

calls without the

."tance
tion

interven¬

further
widely sep¬
arated areas and this is possible
only because of electronic devices.
of..,

speed

an

service

up

to

operator
over

Beyond that, it is only a matter
your telephone will

of time when

sight to sound. Bell labora¬
has
successfully
demon-

tories

Continued

on

page

THAT

Forest R. Tweedy
WILL RETIRE AS A

AND

WILL

say,

GENERAL PARTNER

THAT

p. Knapp

BE

ADMITTED

im¬
AS

GENERAL PARTNER OF TIIE

A

FIRM

giant, $11

a

the

size

at

the end

half

EFFECTIVE

Mr.

Club,

Just

bel^rc

the

Bradentoti, Fla.,

-

>75

parts of the
country
today, telephone users
are
dialing, their own long-disago.

years

ft

Thomas

I

over

some

•

its prime

of

your

phone—as
equipment.
on

Inever

most important de¬
.home—your tele¬

the

perhaps

JANUARY

1, 1957

one

its

♦'Iwaiiis

1956.

You

•

jt.'u;-

a

..

of World War II but not even

Dec." 4,

record.

other

ANNOUNCE

inf. the

employing

times

Tweedy, Browne & Reilly

51 h largest
United
States
and threepeople. Today it

endeavor,

industry

four

•O

lives. Todav, the

our

than

more

highest previous year, and
1956 sales appear1 headed for an¬

the

the

Than
r

2,200,000,

minia-

to

on

Industry

Is

Giant

probably
been
a
hi-fi phono¬
graph and here,/too,V we find a
tremendous growth
in saleg.
In
1955, sales of individual phono¬
graphs,
as
distinguished
from
those incorporated in radio
and
television
sets, totaled a record
about

manu¬

the trend toward

haven't got one in your

"tO"1

accident,

no

an -.awareness

electronics

is

portance

•

tube

which affects and interests
public to a very high degree.

Bradento"

V

relating

long-term Treasury Bonds, which occurred during

September,

May and

field

billion

During the intervening short periods of decline in money rates,

in

facture;

to its closely-asso¬
of
nucleonics
or

or

Electronics

expert

Further than that, new develop¬
ments

higher.

you've

thinking

add

your

up

every

field of electronics is

financial writers on
rise to the year-end from
peak, reflected the bullish atmosphere of that
,»
'*(*'
.•!the

the

it

will be in U. S. hom<#s.

magazine
issue you

or

item

some

indicates

one,

Derby,

self-correcting"),

pick

part-of editors that electronics is
news—that it is a subject, a broad

Eisen¬

Arthur Wiesenberger Forecasting

it

Day predicted a further market

Labor
its

to

re-election.

hower

in

atomic energy.

credit

to

newspaper

see

ciated

During the stock rise of the first five months, the major increase

but

have

electronics,

•

to

and

processes

virtually

and

Action

will

Throughout the year the

in

favorite

and

a

begin

produc¬
efforts where its presence is
though publicly unnoticed.

You

4

will

factories. It is also hidden, in-

our

evolved

such obstructions as profit- "

on

prosperity and rising money costs.

less

over

29-point drop in the Average.

a

attention

the decline,

advance—lasting

an

""

.

present a picture of modern
living—of our life as we know it
today. Electron ics is every where¬
in the open* where we can see its
application in our'homes, in our
offices," in -our laboratories and in

employment policy is political suicide."s When

full

.

ps

'to *

the reassurance that for either party

;with

Let

slow start in 1956, but
hit its stride next
year when it is confidently pre¬
dicted that some 600,000 color sets
got off, to

moment.

consider first how the
facts" of electronics' are lined up

V

voiced that retention of the

was

been

have

sales

28%

about

you

home,

than

tele¬

Last
home

bought by the public

this/year

running

of

migbrty

a

million

seven

some

and

that pro¬
gramming amounted to only a few
hours
daily from a
handful of
broadcasting stations. Television

here in

not to deal

are

we

guess

can

first

still

is

radios were

there

that

-fact

your
com¬

phaSe

this

today—and

year,

is sometimes overlooked in

Consider-, the

•

/

>Double Talk,on Strike News

• ;

of

are

use

powerful oldster sales-wise.

appraisals of the growing
up phase through which this seg¬
ment of electronics is passing.

In its reaction to the steel strike developments the market
confounded the forecasters and made life difficult for the inter¬

,

growth

many

radio — probably more
since it is estimated that
some
142 million radios

a

electronics

current

„

//.

place

in altering our home

spectacular

vision

travel,-, will be .only 21 inches in
diameter, ' will
weigh - but
20
pounds, and will be crammed full
of devices and equipment repre¬

-

in

has been entertainment television.

globe-'s *
This*

mental

• -

there

In the lead as

occur.

divides

so

_

manifestations

dramatic

into

home

at

forting, entertaining and worksaving elements.
You
have, of

Well, let's take a look.

about to

factor

a
.

.

•

life

the only

not

which

denominator

everybory's

about

*.

television, is

But

If

most

are

a n

with motor shares generally
sphere, repre- •
attention was shifted to Mm Henry,'•TordV. cautioning i,
senting man's
words that the public's enthusiasm fob his stock was overdone. •
first s t'e p in
At times of speculative enthusiasm Wall Street Is- prone to regard
an
..experi j-'
as
bullish such- "bending
over - backward"
statements by. an
the Ford 'offering,

on

\

than one,

of electronics have taken

per

miles abov'i®

construction,previously

comment.f And,-in contrast to the bullish

placed
falling

not too far off.

~f

Let's start with the home where

of .18,-

speed

surprised with \
months, during the'
new
gear's first 23 days. At that time, in conformity with the
market's behavior, such nasty things as profit'squeeze and pros- .
pective labor trouble supplanted high business activity irt market
ensuing action, however, obtusely

The market's

and

wall like a picture frame
only a few inches thick—-is

course,

just

How so?

stup errdous

"\

27-point decline, the biggest upset in four

a

your

business.

the.

at

is

of/ mural

day

television—a screen hanging from

expected

ronics

the

earth

ever

.

satellite

made

*

see,

man-

supply

to

that, the

promise

dimension 10 years
hence. Further, it has reached and
is continuing to reach into virtu¬
ally every facet of our produc¬
tive life so that describing it as
an
industry is becoming a mis¬
nomer.
I
like to say that elec-

twentieth century miracle being

a

the largest

greatest

its

even

on
certain
light, gives

acts

current

materials

our

role

the

\yill be turned skyward to watch

national output and the
of" industrial production this

activity,

outlines

midyear of next year, the
of people around the world

eyes

will yield the highest economic

the year: "1956

trical

system and the braini

nervous

look

we

.

provide greater leisure time.'

Forum

that

Just

About

rising activity throughout

steadily

see

Board's Economic

Outlook

Business

the

on

would

by

Conference

dustrial

Contends that if steel is the backbone of

played by computer in industry,
commerce; banking and merchandising, and opines that, in its
initial stages,, electronics' application will result in greater
speed, efficiency of operation, and eventually create more jobs,
more
products at lower cost, raise labor standard and

-

-

as

many examples of application,
apparently limitless end, and as more than a
industry, by Television Shares Management exec- *

"then electronics is its

the im¬

of

sets

If

future.

farther; the development c>f elec¬
troluminescence,
whereby elec¬

of this highly sensitive system is the electronic computer

;

v.

.

or an

/ economy,

explanation and inter¬

post facto the

ex

pretation of news to fit a prior price movement.
At the 1955 year-end as the Dow Jones
*

an

utive officer.

whole and over the short-term; as well as the

a

having

.
-

'

giant.$11 billion industry, fifth \

a

largest in U. S. is pictured, with
as

r

the 1956 market

the television

of

mediate
.as

•

radical, changes in the overall size

_

-Television Shares Management Corporation

,

Growth of electronics

>

;

Executive: Vice-President,

-

compressing of

receiver components

DECEMBER

27,

1956

'

152 WALL STREET, NEW

YORK

24

B

The Commercial and Financial

(2798) ]

"produced

looking Into Canadian Economy

sumed

•--

_

B

0m

saved

-

'

By A. C. ASIIFORTII*

President, The
"

•» *

Toronto-Dominion

'

-

be

can

maintenance

i

of

*

stable

a

•

■

''

••

*

dollar

to

,

Bank,
1

*

Toronto
"*

T'

,1

,

.

sound

assure

r

■

.

1

'

more

-

,

busi-,-about

..

•

.

Students of economic history are
well aware that inflation usually

history-

SOar

.,

the

.

-

.

than

more

in

than

the

dollar

national
been
oeen

third

a

to
io

much
uch

value

of

tober, than

.

progress in

For

gross'

does

year-has

prices.
puces,

did

we

of^ensuring economic stability,

increase

1956

sponsibility.

as

Bank

of

of

Oc-

a year ago, most of the

have, eased

somewhat.
This, of
question whether
there is need to impose
additional

course, raises the

"--

of restraint at the
pres-

measures

Canada

ent

re-v

It had done little

of

$775

time.

The"/months

or

may

which

to

prove

be

1r
ahead

lie

real

a

test

for

nofhing to tell its story' to the monetary management. The timI?3 t0 Wln ^ co°Verat'°?of.a shift in monetary policy

in 1955.

as

a high level of business

the

were

occurring in the first half
of the year,
> Commercial
loans have leveled
off in recent months and
the.de—
mand for bank credit seems to

misunderstanding that

mustbear a large measure of

Thus,
xiius,

not make

the
exist

banks

increase

1955.

the

this

higher
mgner

in reai terms
-n real

'

of the

product

due
aue

in

recorded

chartered

million higher at the end

.Canada .is doing and the purpose
But dollar figures can be mislead— .Df liionetary policy in the present
ing Prices in 1955 were relatively situation. Its primary purpose is
stable whereas 1956 has been a ;to stretch out the boom—to conperiod of rising prices "Probably "^^Dl>the business cycle
as a means
increase

..

*

Canada

should not for-

,we

be-

.Canadian

,

r

year

relationship

business in 1.956 than in 1955.
Call
and current loans in

an

economic

.

.

better

.a

.tween the supply and
demand for
funds:. -r. *
J
>-. <
Overall, much more bank credit
has been available to

,

will be equivalent to $29.5 billion,
<
*
4
increase of more than *10%. '" V Considerable • misunderstanding
This is a slightly higher rate of exists about what the Bank r of

through 1957

enlarge national output. The Toronto-Dominion
Bank head discusses: the difficulties and importance in the
timing of a shift in monetary policy to combat "deflationary
■ -j
c
\
|
trends; implications to Canada of deteriorating international
international^
■'
:t~l
conditions; need to develop more savings to finance capital
projects; and tax reduction proposal permitting non-assignable
,.

invested

national product for the

gross

*'

•

tion in order to

.

and

more,

,

growth—objectives of current "tight money" policy; and, in
reviewing record 1956 growth, recommends increased immigra¬

.

:

;

than in'any previous year/' That -generates deflation. To put it anapplies with equalforce other way, a bust usually follows
to 1956.'
*
•
.' a boom and the bigger the boom,
the bigger the dusl. This is
Preliminary data indicate that tne Digger me bust. /mis is a lesa les-

growth rate achieved during past two years
depicts major task for coming year the

expected;

more,

,

,

-

Prominent Canadian banker doubts continuance
I

»ess.

con-

statement

■

of the remarkable

borrowed

more,

tion should be everybody's

more,

—-

rAtlllMlllHfV V fl A VI AWt If
flllU VUllllllUllftU UVwIIlllllIV (iVAUfth
VlWWWlIl

.

imported

more,

exported more;earned more,

Chronicle... Thursday, December
27, 1956

Activity

withinflationary SS:°f?e,bufess community. Yet, to resist any deflationary trends
fresrafLf Saitoized u.nderstandlug,cooperatTand re' which m'8ht develop is of prime
naidaRZ
econom^over the «
aZ
past 12 months. Not all industries

certificates for the amount of tax cut to be issued.

rfantlv

Canadians

sympathize

of

all

people should

with

the

other

small

their

indeoendence

affairs.

nations

desire

pendent

maintain

in

domestic

national

sions

How¬

the

far

j

are

natters where

cheir

as

many

willing to
—

and

productivity
the

being felt in Europe

of the

Canal

East.
C.

Asnforth

economies

of

act on

only the
-

y

.,

and seem to refuse to con¬
sider the broader interests of
other
nations. Carried to this

fires

of

...

.

,

.

X
not
not

altprpd
aiieieci.

9porpp
bcaice

dnliar*
dollars

are

affected.

exports

-

It now

be

may

to

the

;

part of the Middle East;

<

ne

example; there
in which

cases

local'
«d

so

as

a

are

other

many

geographic

area

gether with
war,,

8e°W*. aLea monitor
the money for

to

a

means

be subject to

revival

that

defense

This, to¬

of

the
™n
can

the

day

cold

when

of a
importance

great
fries

as

areas

In

are

in

ways,

is

other

of

coun-

well, for perfectly legiti-

mate reasons.

hey

country
to

some

cases

navigable

others^

they

these

water-

more

useful

,

^

r"

purposes

is postThe danger of

a major war between Russia and
iree nations of the world does
not appear imminent but it is

,p.nce. ?!

mav

•

A

he

f

misfortune,

^Tavf11! long way to ^
iC^s^s shovys
have
go.

'

Uill

y.

rise

♦"problems unavoidable.
,
./
TCanada has no desire to^benefit
parties, but from another country s

?

.

we but the Suez situation, is not-of

a

our

,

,

cannot

oressures and

be

that

emphasized

the

contraction of the

a

or of credit.

money is about the
ago.

Bank loans

haz-' higher.

too

fecting

tight

:*»* .not

supply

'

nresent

tion

been

money

are

as a

mood.

re-It

consumers

to

me

substantially

there

N.H.A.

trade

is

possible,

tionary exnansion

bipt the

of ^edit.

shipments .printing of money.. There

our

or
can

that

are

it will

continue

stances!

to

see an

entirely different

in

Hungary.

hone

inrougn us, even
the bloody

as

we

reprisal it has entailed.
This and other
evepts in Eastern

Europe

lend

r urmermore,

broademng

IT,ar^t ^or Canadian oil

Pacific Coast

is

on

the

already apparent,

hooe

that Russia's
increase in tanker rates has
its satellites
may soon be -improved the market prospects for
loosened.
We can
not
be sure, Canadian crude.
however, and indeed there remains
Canada is a fortunate nation.
the
very
real
danger that the As 1956 draws to a close we
are
Communist leaders will
bring the again in a position to look back on
V*.
uatA
whole world down in
the ruins of our-achievements
with pride and
a
third global war as
a
last des
grip

on

"""

us

had

Nations

hoped that the

would

prove

ef-

This

is

in

line with

tio,n.s a,year

fectjve in dealing with crises been posslb/e ^""yelr
such
this. So far this
hope has
P°sslDJe a year
us

J

ma

lh?tPSihrn^ °the COnseqyencf of
present unforle

4"

tunate dMsions within the
"
Westorn

community

of

nations,

over

Huez

policy. Collective 'action
could not be mobilized, and inde-

•

*An

address

Annual

The
Dec.

Meetin?

by
of

Mr.
the

Toronto-Dominion
12,

1956.




Ashforth

before

Shareholders of
Bank,
Toronto,

WThere"has
lhere has

into effect

for

N.H.A.

"existing

to

ested

in

the

secondary market

this.

rate

mort-

is

Pension

purchasing

not

plans

not inter-

are

5V?%. mort¬

gages in the present market except
at a discount.
•
*
'
*
*

t^e
be

While

tight

the

housing

pconpmv oberan

starts, th^v

increase

the only ifac-

not

are

tors. The high cost o<* land and the
j3Ck of serviced 1 and have had an

i

A

L.i11!

1

i

1

1

.

n A

A A

n

i*

•

■

liable

i*

-

l

•

perhaps $7 Vz billion.^^

VVill be

large

a

carryover

There

.

thorifies

has

been

into 1957 r.the blame, if it

can

recehting

^

a'l

Canada

has

is

to

However,
ing

*

Hkniwinn
"

>

.

to

-p,

+i,rMt
.

,,

..

Present

wnhftwi/« etahilHv
-

\.

,

-

•.!»

-

tmoney *

indications

are

years

excess-

in

demand 5edverselv.

to

pocn"rag0

Further

'

'

housing

libpraliza-

tion of mortgage t^fms.would

undesirable.

insured

/Perhaps

a

seem

plan

of

moT-t^aees.

for. evicting
similar to-the N.H.A.
mortgages!tfor n«w construction,

dwellings,

wooldi

violation

to- be

affect

construction.

jbg'-.dcsirable.

fundamental
of

tuuicaiiuns,

will"*contihu°

recent

substantiabv

nece«sarv

permit

,

main

been

If and when capital investment
levels off some measures may be

monev «upolv. To have cohtioupd
--tbi-s policv.in the rircur^stnnppc of
a.

the; de-

of fa«njiv formations. This is bound

forces of a free market to
,^ DO'Ssib]p Achievcmpnt'of
thpsp
exDress
themsplv°s -in
ioferost
ob;ect;'ves
the'goai of thp- rates- P°r years' it'keM inter^t
*:gut p^onPv
nolirv. a'bnnt" whiph' ra^ps rd°wo
bv - pynandio^
thQ

,years ago we were-nfra^id
WohM have been^
0
deflation.
Today, inflation iQfj^it&
statutory': duty:'
rat"Cr than a depression is the

to

do know that hous-

we

completions-in

have

.doiiar7q0unH^^onomVc "growth"is the

|upr

respect

mand for housmg arenotav^ilable.

be called that*

done

data-in

t-'-at
t>at

;

reason

Th^^e As

no

«'bv the buyer

house should hav» available to r
aoie to him be+ter t.°»ms than- the
a

ppw

tight/ huver of

a

^oo-i evictin<# dwelling^

to^resMted-but-ohe .^h? ih^ths immediately ah<.ad. The nr» discrimination
ewyreve^pursers of »-istin»-dwHlings
.■nespHe the rise in interest.rates ht™
nresent

.result^ht

nPOnlp

vestment, intentions continue on a
Vhi Platean and the demand for
ttTeir i^«i«VanpA* to funds po^tinu°s strong. >Thpre is

sppm

to

likp

•

#

^

fiafionarv

i-

.

in

distortions in the-hous-

ing market.

infla-

/
/
/
TlTeiOondneWToTln^

»<*ainst

A ol on p>f Jrivhir per-

rentage ins'"^d mortgages for existing dwellings vr0uld
broaden

*

deneisedserusaem the housing market.
to contain m-.a rossibility that money will be-

nrp<,„,lrp<;

Tf

ic

nnlv

ard'oAfviiigeiM^me1 Canadian?are

pomvp even

tighter thqn it h^«? bcm.

jn

a

over

two

vears?

the

diu UI "™&- More canaaiai)s: are natural that-there should be comV;»e thr past 12: months th-,banks have bilijf „n a n0rHoho of
'
charterpd
^ rharWPd bank^ made additional neariv. ,,500 milhon -inbank, made additiona! neadv -«500
work than ever before "JJJ-??! ni«intc .about.
and the plaints ohn„f
tight^mo.ney..from.jp^rmfunds available through the mortgages—a.'million Mn- N.H.A.
verv
number of persons out of -work those whose plans for expansion sale of <
commendable
and sppklhcr -inhc
government
bonds.
But
roCOrd
and seekihg jobs is at a minimnht are
at
minimum,
However there is a nrac>i_
"
"
'
l,clc 13 ^
hampered. We are all human." bond holdings-have heen-rPduced "
Heal limit to the amount of mortBrieldy> a condition of full emSelf-interest is a very human trait *° a PO'nt where further saies
ployment prevails.
a/e gages ^which the c^arteppd banks
~

.

k

a

,

,

,

%

j._;"

,

i_

i

j

j

.

_

.

Twelvp
-

•

months

affn

in

"lOnmS agO, in Hpc^rib
OeSCriD-

Itlg business Conditions in 1955, I
remarked
that
Canadians, had

,

the

and

monev

,

to

ure

our
°?r expecta- ^
exPfcta"
but we-have

aeo
ago.

The

line

\
plan / for

.

^ the monev gupoly would result
iture intentions at-midn
1956/were "in higher wicea and have little or adverseeffect.. There
!
ni/A
"r^n
is also the
li.
nT^Artf
A^-nnl
iivirt/lii rtfi
estimated at $8 billion but
actual no effect on actual production. " Question of housing,
demand. >Reoutlays will falLshort of -that fig- \ The policy of the monetary a"-

r,verUtho!e the^h'" thei/con/°1 econom/^^as'bee^f demor^r/t'^i!
ey have sub3uSated. ^°"omy has been demonstrated,
It has been
another record 'year.'
JL1,?3? been another record'year.
Many of

a

and other investors

061 and financial. Capital,expend-

?ey

IJnited

Hous-

N.H.A. interest ra+e have contrib¬
uted
to
the
decline
in

With

strain our resources—both-physi- ating at'full danacity

of

a

new

of

out

'

came

develon

gages.

,

aaa-

is

-insured

that

was

would

in

weep over

the

conducive

sort

Here

National

mortgages

N.H Ak "loans

rnakipg. One sector of the and
bi^ new projects are on the ffpr the rise in the cost of borrowCanadian economy that is likely
planning boards.
>•
ings. An int,c.-est rate is a price
t0
is the oil industry of Westrecent weeks the common
As we enter 1957 the maior t«sk the prlce of money and nr,Ces
people ern Canada. With the oilfields of
ay.
ronfrontins Canadians is thbmaini ?ovp™e't ~
hav0 staged a heroic revolt against the Middle East in
jeopardy the
h7
law ot wrjr
the ruthless
tenance
of
a
stable ^dollar
and .an<1 ^"mand. At the moment, the
military tyranny un- large-oil companies are certain to
<ier which
they have been held.-speedup their exploration and de- sound economic growth " These demand fnr mon°v is or^atB/ in
Courage of this kind sends a thrill velopiftent work in Western Can- two obieetives, it seems to me; go
°t the sunnlv. All the Bank
We

of problem

bv

the market.

When

_•

spending, courses onen to us—the present
' ,t.ti '
disturbance of our tight money situation, an infla-

expectation is that

construc-

sUrt? Z recZleZ^Z

financed

witH

three

are

;

.

.

seems

i

ing Act loans. At the present time
funds are
being diverted
from
N.H.A. loans because the
yield on

year

A

Some

export

a

residential

new

A hi^h oronortion of all

aH«- housing

The suoply of
same

<

^

funds

.con(ldent

a

m(uwl

' tions

preparedSess^Thus Iiu?th9er
in defense evnendVtnre?

™

I^ncer^ln

If

immediately ahead.

field

The over-all
scarcity of lendable
is not the only factor af-

-

particular,

ap-,.

land

are

routes^^othersrefi?^defensive
on?
hnL
Wp

to

poned indefinitely.

a

tightening itself.

*inue upward and

be diverted
.

novereignty
ireignty

a

The physical

labor in

neld

residential construction is
in which tight money is
u*xrir>«
xnoncy is
having an obvious effect. Housing
starts are down this
year and
a
further decline is in
prospect for
1957.

are

and

the

There

New

one

Central bank policy has
ardous occupation at
any time and
been directed toward maintaining
this is certainly true at
present in {"the volume of-money at the same
view of the.unsettled international^level.as a
year ago and restraining
situation. Assuming a
speedy and <any exnan«ion of credit. With depeaceful settlement in the Middle mand for investment funds
ris'^g
East crisis, the outlook for 1957 is sharply, this
has- resulted in the
favorable. Personal incomes con-.money market

apparent that the
Russian sphere of influence has
been broadened to include at least

results of their ac¬
Suez situation is only

nf

tmanciai-restraints. ot

strongly

stability which al-„

forecasting is

expansjon

financial, restraint*

materials

years .would from

-

Economic

seems

tions.

to

in the months

con-

a

just as great.-In
faot.iight money is a reflection of
a
tight supply situation in some

of

on

authorities

abroad

to

rate

money policy.

impact

*

obstacle
f

an

to keep very close watch
on
the
"n,nn0„
au
■
1
money, market and business trends

-

impression

only

limitations

,lifmt'

ready exists.

Euro¬

adversely

bility for the

threat

be argued

can

level of economic activity
is a-lag
Thus, the

have

inctified

id

7.x

Ught

growth

already stiained to the

are

^ *J%L
art mcrease ^ P?.st tw0
^ °f
inflationary

affect the welfare of
all, and even
)>erhaps to jeopardize their very
safety, without assuming responsi¬

Canada's
markets

1957

rate-of

have

,evidence

some

increases

justified

an

is

the

thp

arp

?•

^

achieved during.the past two years
cannot be expected. Our resources

likely to be diverted to the pur¬
chase of all important oil
supplies.
pean

through

remarkable

that

tinuin

accelerating

respect,

hac
.

There

ex-

is

wage

ater than any rise in pro-

^nrtivitv

_latter

of

,-eulistio

a

there

uucti vity

happy to

are

(government

Continuance

,,

extreme,
self-determination becomes a
mockery in which a few are al¬
lowed to enforce decisions that

Thus,

we

been

of

immigrants

actiymes.in this respect.

the

infla¬

,.

and

ff®activitierin fht
activities in this

its
itsi

tion will be fanned. A dollar cri¬
sis will recur.
In these circum-

narrow-

%
est,

The

the

see

J I. -,-r
desirability

on

that.• reCent

MatterTatter

The

flow ..of

into Canada

slow-down in production

A

the

enlargement

force

the

up

m-incjs

cially-aS

only

can

It

easy money policies were caron too long and too
far when
the boom was
gaining momentum
Thpn ■■
a„■
7L ♦

ried

^or^ou^k^p fiFSg®. lifts Tmoneta'rV'pXy do'noJ
basis,.esneimmediate

further

through ..increased
and

working

pending

blockade of the

The

is. inevitable.

be

The

it .would appear that

be '-achieved

European countries are
dependent on oil from the Middle

cases

to

result

been too acurate.

that

skil.ed,,'s particularly acute

Western

nations

n e e m

a

SS»"eSS

to set

production

CTisis could•.■significantly- growth,in national output

already

<5UC7

sover¬

eignty may be
Involved. In
these

interna-

ilk!.\ I ^
Serious economic repercussions points

I in

need

1S

business,

the

at all levels

necessary spending. Business
a*' °r;approaching, the limits
should make a concerted effort to
set by manpower, materials
and,kpen iu ' f
H
nr:rpc;
dnwn
plant capacity.'.. The scarcity of

o

business situation, though
the nature and size of the impact
ran not be determined at this
time

their

way

|

thi

alter

Mosoerfw'butover 'Si
prosperity but over-all

situation-has. broad imp
One thing is certain
the

present

allowing small
hations to
(»wn

For Canadian
in

erbments

tne p
the politi-

irom

deterioration

cations

nowadays in

have

turn

us

economic.

tional

may

too

go

and

Britain

cal aspects of the situation

occa¬

we

by

discord^

But let

ever, it seems
fo me, that on
/some

action

France has bogged down in in er-

of

to

but

our

first

the welfare
a

whole-

To

concern

should

be

^oY'

as

jcy of .credit restraint is inprpa=ipg
in effectiveness and this may
bring

thPre

of

the

community

,

put it boldly—infla-

are

l.ndicattons.tnat trie pol—«

r2ay prpotexPected
be
tv->P

Hemand

;

'

.

for

..

caiT'other

.With
tvnes

"'

/

.

*

Continued

on

page

IS

"[Volume 184

Number 5598

The Commercial and Financial Chronicle

...

'(2799)

jump of

Aiding the American Investor

high
is

With

Better Invistment Climate

a

By KEITH FUNSTON*

of

*

billion.

yourselves that

to

rising

a

issues.

But

we

it

also

not prove

the

re¬

investors
hard to find. Of
earn¬

now

$/,5U0

man

inCKie

and

middle

the

ranges

-

million adults

10.4

ing

able

7.5

some

raising today

Predicting stock financing level is likely to jump 30% over
last year to a new all-high of about $3.5 billion, New York

*

Stock

Exchange head

close the

equity

billion

basic tax

a

between that

gap

need of annual $6

*

-

proposes

to help

program

not

stock.

own

not

much

so

Thus, the need
dollars

tor

as

for

note of:

of

treatment

capital

fully reinvested;.

gains

-.JWe

great extent potential; growth money

a

Americans

been preoccupied

have

with!

disappointed us
<t>
Today, a bright
economic
ture .is
d ,r

a

f

i

w

there

u

-

has

when

it

n

is

•

..

the

at

an

on

G.

that

t

data

he

and

xi/1
We

a

"

of

where

he

earns.

contribution

is

not suf-

ficiently appreciated, and that his
problems seem to be of relatively
we

others.

to

concern

In

short,

acknowledge the investor's

istence.

But

no

ex-

The situation

be

to

seems

one

worried about him.

very

noise

his

suits.

When

Weeks

about.

name

without

apparently

re-

he

complained, the
said, "Don't worry,
Everybody's talking about
Then, more weeks passed,

publicity
Noro.

you."

man

Morales couldn't find
of. the columns.
him.

nored
'Don't

line in any

a

The trade
He

papers

called

again,

Noro," he
press
iagent said. ^''Everybody's talking
abdU^

said

worry,

M<?.ra,fs\.

..

.

-Well, it

is

include

bv

is

what

•

People

Funds:

Them /

Venture

*

The

climate is
At

now.

the

own

are

doing

area

to

Amer-

PeoPle ar^,

saYlng

,

as

onfe; better muP. . m°ney aS the/.s
d'
efficient so it is easy enough to prove that
children
arirl
they have m0re than enough

-

Y

..

.

,

v

in.

,

the

conviction

weather-making

d to' Noro

funds to supply the equity dollars
"
^LJ
M .
Ywr
our
expansion
demands.
More-

of:

ater

gr

But

as

advances

likely

are

/
t

*he
with «rhich
day-to-day, expenses.

Like &11 things of value, this' f °unts'' ort

future

has

h-llin
,

nrice

a

•

Thic

Hniiars

,

a

i

•+

Tt

tas

they

reads-

If, for instance, the nation's aver-

th^

ic

meet

a&e

t.*

adult population between now

wiff
the" and 1965
P°ratl?ns will hav<i to raise
the
t
d
financial energy they must gen- feni^a

^ejt

ne^Td^tr

^apaclty

^19^5

me6t

to

needed

this

billion

were to put

phone cal1

meet 19bo

stantial

billion,

$360

should

tutional investors

to

ment
are

striking

two

economic

is

first

mediate

future

that
—

the

the

well.

as

facts
to

invest-

our

There

about

consider.

challenge
years

our

The

is im-

from

now

through 1965; the second is that
it£ dimensions are ours to decide.
'

We

enjoy,

at

present,

National Product of
..

Y

*A"

fd^ress by

over

City,

$400 biU
■»

„•

A.

Dec.- 6,

Gross

Mr. Funston

K3J&
York

a

h-f.-re

Z'l""

i95G.




built1

some
awesome burden?#
investing public—and oa
capacity for growth-

imposes
the

on

nation's

the

Impressions From Europ >

Three

and I should like to

attached

once

As

ments.

have

we

part

helped

niques

the

as

of

our

program,

develop and en¬
investment

such

courage

invest¬

stock

to

tech¬

successful Monthly

f

stock

millions.

tical

reach

have

recognized,

of

of

aside just 8

nities

But

we

that
opportu¬

course,

dramatizing

investments

investment
not enough. -

Our

c
~

share-ownership within the prac¬

^

^

^

the $3° billion total

is

.

responsibilities .cannot end
there. And so, for years, through
a
massive educational campaign

Rpaijstirallv

f specific

through
an

of

groups

course

we

l,?Ur
tor the bulk of °U1
nf

can

The

there

must look

m.r

equlty

have cautioned

and counseled

public, emphasizing the yard¬
sticks that should guide investors.
We have

(stressed that people must
the

understand

risks

as

well

Five weeks ago I

main

with

as

a

matter

Gf

American

the

scene

broad subject, uppermost
now. It is not
cover
here. But in

course, a

in

minds

our

that

I

cart

speaking of the investment climat i
important, I feel, to urge our

it is

government, in its foreign rela¬
and
through the Unite!
Nations,
to
insist
that
whiks
America recognizes the rights bX
tions,

control

a

to

this principle must not b.?

wielded

like

be used

to violate

business

what/,

he is and

contracts,

a

due

:c :'r

;

Hi

v

*Of this amount, $15,000,00(1

28, 1957 and

him what a difficult and dangerQ

f

Sinking Fund Bonds

thing it is to be an American,
th.

*

Amprican doctrine

by

brave

men

was

for

part

dp-

i

j?. oh

challenger who will tell

a

an

f

will be-sold by the Company not later than June

additional $20,000,000 not later than April 28, 1961. All or

of the remaining $5,000,000 may he sold on or before April 28, 1961.

-

brave

/.,/,

,

I have baen told, many times by
people, that our common
sf°c^ goal cannot be reached. I
Prefer to think this is another area
in which we have the opportunity
to confound the pessimists and excee<^> as we havei so often in the

,

many

P3;1' the m0st ,pe

mates of the optimists.

F. Eberstadt & Co.

tive esti_ ..

^fPor we-have the potential.'We

have

seen

it

year-- The 1956

demonstrated

this

volume of net new

stock issues will probably show

a

or

December 21,

1956

noi

jeopardize

on

Bonds by

oj record only.

July 1, 1976

wonderful things

it is to be an American.. What we
need is

It must

re¬

the sanctity of

Continued

as

once

wonderful fellow

a

w^t

axe.

an

own

private foreign investments madw

flatterer who tells the American

citizen

their

nations
sources,

AIRWAYS, Incorporated

494% Equipment Mortgage

lest*
fatet

investments

ovq

BRANIFF

is ths't

frequently befalls private
abroad.
This is, o.»:

that too

840,000,000*

great disservice, I

still re¬

first

European businessmen are no
concerned than we over the

.rcct'r

monumental undertaking. But as
Gerald Johnson, a shrewd observ-er

that

The

me.

countriej

mention thre'i

impressions

strong

rate of recent years.
a

returned fror*

European trip to seven

undersigned represented the Company in negotiating contract* for the purchase of these
certain institutions. The Bonds are not offered for sole, and this advertisement
appears

toda}.

particularly as it concerns taxes*

dispelling many of the fears that

we

be expected
to supply about half of it. But the
remaining $30 billion should come
directly from us, the American
people.
And
this
represents
a
hitherto unknown scale of direct
individual investments in equity
securities — that is in common
stocks. It is fully three times the

Would be

a
venture¬
risk capita^

climate

investment

the

on

a

the

$60

some

raised

be

the sale of new stock. This is

„

on

educational

for

that

nation,

opportunities, risks and re¬
wards of shareownership, and in

degired from individual investors

average of $6 billion a year over- to
the next decade, if our future is
to be financed soundly. You might
well wonder, where will this kind
'
of money come from? Weill, insti- '

-f

but also
philosophy

an

which has made sub¬
headway in spelling out

program

could be met.

&UcUJ>-

Yw6 onnPm/rUeled demands.-"0t vised"
only on our 'resources and ingenuity,

some

have conduct¬

we

ed, in recent years,

■

^mdr"

The nation today

+tbe any we df' advances
ver^e have known.
an

such

is to

integrity.

unimpeachable

Going further,

And

mar¬

honest, open and above
a membership which

invest¬

determine.;!

large extent by govern ¬
it can be said in ttiri

very

a

connection

board, and of
is

policy. These are

ment.

Plan,
a
simplified
they have those dollars in Investment
method of giving stocks to chil¬
.Need for Growth Capital—$360 a liquid form that makes it unBillion of it
Comes First. It is necessary to disturb their govern- dren, and the growing number of
Clubs.
These
put.
Enormous and Must be Met
*
rhent bonds, their checking ac- Investment

commented: "What we need is not .*■

,

|omo^°^,J^1at we
ourselvesadcing,'"WhattoY>the

a

to

over-atl

and

get as anything but a difficult and

vitally importent,

investor? ;

ican

of

ment

We

duty

continuance

the

establish,
the
conditions of

cannot

our

that

The -over,

pub-

,

happened

ever

terms

atmosphere.

healthy

a

....

»+af-e
don t find

within
responsibility, we

great deal to establish

a

con¬

only part of the investment
We operate under, biri

,

lcan

and

climate.

Exchange,

of

however,

Exchange,

The

trols

the

the

the fringes of tfeo
beyond thn

community,

jurisdiction of the Exchange

/

stock

our

more

a

still operate on

financial

continue to do so.

is not very far off.
time for creating the rignt

ket that is

,

,

While, undoubtedly
.

tempt¬

seem

protection the investor can obtain
against con men and gyp artistfj.
It is one of the unpleasant facts
of life that a few sharp promoters

1965

insure

They

Encourages

Well,

chief

auit^

Require
a
Investment
Climate

Healthy
That

by promo¬

or

is right.

have

Dollars to Supply Needed Equi-

ty

eloquence

per¬

gimmicks. Nor will they be
solely because the pros¬

such

Enough

Have

think, to describe this equity tar-

Y

„

the

12 adults

we

aPeoX'f Capitalism

a

But

I-* man ^paused.
Why, he
!xirv5 f
-°^
They-re-saying:
Whatever h
p p e n e

for

car

How Do We Make it Happen?

you:1®verybody-'' T know,"

Morales, exasperated.
what are they saying.
The

a

on

on

if

10

of

be

ing. No, they will invest in stocks the rigid rules that govern our
only when they have solid reason/ members.
For »years
we
have
to feel the climate for investing
helped to expose them. We will

in-

they

lllerally a ™ople s capitalism.
Enough

bigger

a

Today

greater
issuing

a

by

cannot

pects .for the future

thestockholder

reDlaCed

g

$7,500

room

second
now has

-+-

Of

Morales, the bandleader, found himself some years
ago.
He was a struggling young
unknown.
Worried by
his anonymity, he hired a publicity man
went-by,

a

.

.

is not unlike that

in which Noro

to

mean

extra

an

better communities to live

same time, it s clear that
significance of the investor's

little

with

^

,

-

At the

economic

:

mean

over

million

one

finance

moved,

?inanclal elfte.

personal.

likely

tional

the

,

growth

Investors

suaded by

Their

in

to
its

of

stocks.

in

stock

33%

Over

share

;:that shareownership is no longer
the priviiege of a
The wealth« few are, in fact be_

For the average

more

him,

millions

ipany

represents,

how

the

to

billion

persuaded

un-

million

8.6

corporations.

out

pointed out the urgency oxgetting the facts, seeking ,/goo«t
advice from a reputable broker

base to build

a

out of every

one

one

have

holder

will

gap

own

year.

the
unexpected shouM
shareownership. And wo

an enormous

jumped

joined

protection

and

reserves

How, then, are they to be per¬ and staying away from tips and
to join the nation's stock¬
get-rich-quick schemes. Out o:t
family — assuming,
of this educational effort, we aro
course, that industry itself can be
convinced, will
come
the bepl

the

.

cash

suaded

of $6 billion.

t,lose w*?° own shares in private
corporations. They number more^
women pen men.-They engage in
eveiT
business and profession
and cor9e from every walk of life.
Two-thirds of them have incomes
u,nder $7'500 a year. They prove

be /reflected
our

very

will

It

year.

lot;
family that

much he
aiTh^wmuchVe e\mshe h°ldS' '
*

of

after tax income of

Ex-

concerning

know how

We

people

Stock

accumulated

course,

of

will

level

larger

It is natural,"!

the

at

about the investor.

of

wealth

Keith Funston

should be particularly

concerned

elude

„

the rest depends.

have,

ability

additional $200

an

house

we

The

munificent.

every

a

,

assuming relatively stable
will be both staggering

needs and wants.

It

.

has

last

-

/family," it* will

wjhom, in large
measure, all

/■nnnorno/i

...

,

worth* of" goods

like,

suppose,

>

~

already htgh living stand-

absorb

investor,

change

Or,

W* oE thisnew output

—

and

$600 billion.-/

;

prices

with

fellow

our-

ard

that

about.

is the

on,

„

—even

talk

you
.

rise

$535" billion.

to

fesumate:

.

!

as-.'

pI.should

lie

g

over- *

ignored,
-

to

prefer} there is Dr. Arthur

one

,has been

to

30%

expected

=

and

Burns' recent, even more optimis-

.

/pect of it that
looked

^

that's locked-in

be

can

another

arrived,

people
.ranks

..

government estimates, this

to

of

last four years.

But by 1965, accord-

year.

figure

never

But

important

r

a

ing

.

the

on

ibpards.
>

\

:wua

i

_

lion

the future

—probably because it

■t

always

publicly-held
^number

impose capital gains penalties on
public's profits; and $200 billion of unrealized capital gains
that is to

1

•

-

(2)
the

46 countries that do not
;

consists

individuals^ who.

(1) ample precedent recognizing-the concept of tax-

'deferred

-

people willing to venture them.

$3.5 billion

some

—

share-

tailor those risky,

they can afford. We havo
that a steady income^

to what

precede

is

we are

professional ranks—

accompany

explained

against

do

empha-

goal in the years ahead

our

annual average

It

on.

■v
■*■>

lock between vital capital need and repressive taxes, and takes

,

an

•_-Y effort. But there is

suggestions to stimulate such investment and break the deadf

and

Closing the equity
,questionably require

being raised and future
Mr. Funstan outlines tax

now

average.

—
—

/
-

gains that

ownership, and

business and

'

;

the

million—including millions in the

volume v of

sizes the gap between what

But

income

should

Here

business¬

nation

venturesome

a

market

stock

President, New York Stock Exchange

$3.5

indication

in

needs.
upper,

all-time

an

like

main
to

about

last year

over

firm

a

men

.

30%

some

from $2.7 billion to

—

7

:

5 ir :•.

page

213

8

The Commercial and Financial Chronicle

(2C00)

porated,

are

Recommendations & Literature

data

send interested parties

to

pleased

firms mentioned will be

understood that the

It is

the following literature:

Letter

(No.'23)—Comments

additional

on

,v-

Steel

& Co.,

Also in

Y.

bulletin

the same

South

and

construction

Wall

52

Co.

Memorandum

—

Juan

Doyle,

ties'Corporation,

(Dec.

Tool

-

will

be

15, and that the yield should
4.30% and 4.40%' to

be

made

between Jan. 9 and

between

maturity.

'

Several

Monthly

investment letter — Burnham and
15 Broad Street, New York 5, N. Y. Also avail¬
—

The issue will be sold'

Jan.

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

&

27).

—

Whipple

Co.—Memorandum—Bacon,

Continued

of

dur¬

agement of Morgan Stanley & Co.
and The First Boston Corp.
'
It is expected that the offering

Securi¬

Broadway, New York 4, N. Y.

52

Machine

Sunstrand

bonds

through a nationwide underwrit¬
ing group under the joint man¬

Dallas 1, Texas.v

Inc.—Report—Hunter

Association,

Racing

offering

an

20-year

ing the month of January, Eugene
R.
Black, President, announced

135 South La Salle Street, Chicago 3, 111.

Co., Mercantile Bank Building,
San

Development

make

$100,000,000

Carolina

—

and

to

proposes

are

:

■

Wire

&

Co.,

&

.'Producing Properties Inc.-r-Memorandum—Rauscher, Pierce &

Canadian

contracts, atomic merchant ship program, progress
in atomic chemistry with items on Westinghouse, El Paso
Natural Gas, American Machine and Foundry, Foote Mineral
Company and Newport News Shipbuilding and Drydock Co.
—Atomic Development Mutual Fund,
Inc., Dept. C. 1033
Thirtieth Street, N. W., Washington 7, D. C.
View

Gas.V

&

Northwestern

uranium

Burnham

The International Bank for Re¬

Nordeman

Chibougamou Mines,

Campbell

on

O'Connor

Atomic

5, N.

New York

Electric

•

$100,000,000 of Bonds

Company,

Light

and

Power

Aircraft—Data—Bruns,

■Northrop

Street,

"World Bank" to Offer

Froedtert Corporation.

the

and

Incor-

Milwaukee

Street,

Mason

East

Company, .Wisconsin

Carbon

Co.

&

2, Wis. Also
analyses of American Marietta Company, Speer

225

available

Dealer-Broker Investment

Corporation—Analysis—Loewi

Steel

McLouth
.

.Thursday, December 27, 1956

..

porated

'

;

features

in

the

will

*

be

incor¬

jrom

signed to meet
of

Company,

4

page

able is current Foreign Letter;

Carpet
D.

Industry—Discussion

"Industrial

in

17, N. Y.

Lynch, Union Trust Building,

Pittsburgh

19,

•

•

•

Elections

the
as

Pa.

»■ ■

in

early November did

School
57

57

District

William

analysis of all county-wide special

No.

Bonds—B.

1

Street, New

York

Van

J

y

Current

—

informal®!

Heller

Co.,

&

30

military spenoing and the general inflationary attributes
stressed, and on the other, midst or after market declines,
the "obviously unsettling" connotations of international crisis were
stressed.

'

tan

York

Steel—Brochure—The

&

10 Pine Street,

Bank,

New

Iron

State

School

Manhat¬

Chase

Traditionally

New/York 15, N. Y.

registered

Incorporated, 44 Wall Street, Nby/ York 5, N. Y.
1957

Profit—List

—Peter
New

P.

of selected

McDermott &

securities

this

in

for

capital appreciation
Co., 44 Wall Street, New York 5,

the face

•;

So

value of

showing

up-to-date-

an

we

that

see

satisfactory
sjs

«

.■

#

yield

and

National
York

Quotation Bureau Averages, both

market; performance

Quotation

4, N..Y.

Bureau,

over

Inc.,

of

/

,

*

tor

income,

1

IoTtstmenl

&

growth

and

10,

1957

Meeting

Nov. 3-6, 1957

trading—
Jan.

;■

v.

-

(Philadelphia,

Pa.)

Santa

at

Barbara

(Hot Springs, Va.>

National Security Traders Association
Annual Convention at
the Homestead.

■

Philadelphia Securities Associa¬
Allis

Chalmers

Manufacturing

Co.—Analysis^—Laird,

Anschutz

clay Hotel.

British

Petroleum

"

*

Potash

Fibre

&

120

Witt

on

Products
Fifteen

Micromalic

Corp.

Hone

Corp.

&

:

Organization,
a

bul¬

Ileintz

Euclid
Kerr

120
Knox
Ira

Oil

Cleveland
Co.

—

15,

McDonnell

&

5

N.

Texas

Co.,

*

to
'■

Hotel.

•

.




,

-

the

of

Investment
.annual

Statler

tr

.

f

i

-

t

•-

Conyention
'

Hilton

meeting

Hotel.

Earl

Jr% and

'*

;

Financial Chronicle)

Admit I. G. Kaufmann

admit

,

H.

Steiniger

have

Company, 623 South Spring

*

ANGELES,

has

become

Logan

&

Boulevard.

California

;

-

the

Green¬

Perry III

Dec. 31.

the

on

to part¬

-

.

Gold water

from .the firm

will
same

Co.,

He

was

is

of

the New

York

nership.

Lester, Ryons Adds

conducting

—

a

LOS ANGELES,

W.

Jones, Jr. is

Calif.

&

—

Co.,

623

with

i

Box

■

:

§

,| DEMPSEY-TEGELER

'

Commercial

1 Place; N. Y. .7/ N, Y.
1

& GO::

1186

Street, ^members of the New
and1 Los

changes.

Arbitrage

'

•<

&

He

Angeles
was

Richards

&

years

Stock Ex¬

formerly

Co.

experience

operation.

on

Have sub¬

New York City location only.
Financial

'•

South

Hope
York

Hill

Familiar

John

affiliated with

now

Ryons

Lester,

Walter

securi¬

stantial personal clientel.

-■

;

(Special to The Financial Chronicle)
.

Attention N. Y. S. E. Firms

•

Stock

on

DEPENDABLE MARKETS

i

J

Admit New Partner

2115 Beverly
formerly with

Investors.

Road.

■I

retire
date.

Tucker, Anthony Will

Security Analyst Available with 5

V

v

with

ties business irom offices at Westway

Exchange,
Kaufmann,

January 7th will
admit David O'Leary Ji\ to part¬

Calif.—Phillip
connected

SOUTHPORT, Conn.

-

on

J.

Exchange,

Walter Perry Opens

Sulphur

*

at

Leo

members

.Joins J. Logan

J."

G,

BOSTON, Mass. —Tucker, An¬
thony & R. L. Day, 74 State Street,

(Speciul to The Financial Chronicle)

Mael

Irving

$7

.

become associated with E. F. Hutton &

effect

in

be

which will retire $5,000,000 of the
bonds in each year to maturity.' *

V

(White

Beginning

member of the exchange

:

;

*

1 at *

-*

»■

Springs, Va.)

Spring

tt/TMu

street.

Truster, Singer & Co.
'

-

*

Association

Investment Bankers Association

'

•

■

-

LOS ANGELES, Calif.
John
H. Kaufman, Jack H. Sederlund,

LOS

at

will

the

.Gartman, Rose & Co., 1 ; Wall
Street, New York City, members

(Colorado

Hutton Adds Three
(Special

I
4.

.

fund

in

to 100%

mandatory

a

will

the Broadmoor.

3=

All,

1

Street.

[

interest.

accrued

in the ipiddle of 1967

sinking

un

ciatiom Annual

Association

(Dallas, Tex.)

available

prices

National Security Traders Asso;

Mtaljes

I

1958

(Chicago, 111.)

Bankers

May 8-11, 1957

Treasons (Srerthuts

i

anniversary * dinner,

Group

meeting

brier

IB est

Associ¬

King Edward Hotel. "

April 21-23, 1957

Y.

ami

Traders'

Conference.

.

Turnpike—Bulletin—Tripp & Co., Inc., 40 Wall Street,
York

•

bonds

open market at

of the New York Stock

11th National Instalment Credit

Corporation—Analysis—Unlisted Trading Dept., Rm. 707,
Haupt & Co.; 111 Broadway, New York 6, N. Y..*;.

New

.

..

25th

American

Broadway, New York* 5, N. Y.

Maine

Canada)

Bond

Bankers
—

(Toronto,

Mar. 18-20, 1957

Ohio.

Memorandum

3,

-

Springs, Colo.)

,

party

ation

Inc.—Memorandum—Ross, Borton & Co., 1010

Avenue,

McGhce

3

29-Nov.

*

'

Chicago
at
the

at the

Paper

Texafci—Analysis—Winslow,
New'York 4, N. Y.

of

Hotel.

1957

Toronto

'

General American Oil Company of
Cohu & StetSoii,,;26' iBroadway,

Chib

winter

Sheraton

Oil

&

Traders

March 8,

Fibreboard

(Chicago, 111.)

.

Company—A^ajysis—Underwood, Neuhaus & Co.,
/Inc., 724 Travis .^treet* Rtouston 2, Texas.

Jack

1956

annual

Meeds,
,

Also available is
on

•

purchase

nership

28,

Bond

>

Conklin

and

Jan.

&

j

1. 1967. During
period 1957-1966 when

Gartman, Rose to

at-Holly-r

.

♦,

Bissell

•

Broadway, New York 5, N. Y.

letin

Oct.

Winter Dinner at the Southern

on

Walker

'■<

•

Co.—Bulletin—Laird,

Corporation—Bulletin—De

100

H.

Convention

wood Beach Hotel.

(Baltimore, Md.)
;
Baltimore Security Traders As¬
sociation
22nd
Annual ' Mid-

Wall

36

bulletin

.

Broadway, New York 5, N. Y.

Clary

*f Annual

Hotel.

Co.—Memorandum—G.
"I

Securities

a

-

.

Association.

Jan. 18, 1957

Chemical.

Products

Co., 503 Locust St., St. Louis 2, Mtr.*>
Christiana

Co.,
is

bonds will be non-redeem¬

(Hollywood Beach,

Investment Bankers Association

(Chicago, 111.)

Bankers

1-6, 1'957

Fla.)

;

,

0th National Credit Conference.

115

N. Y.

Brunswick-Balke-Collender—Report—Bgche.
Street, New York 5,' N. Y. Also available
American

American

■

Co.—Memorandum—Goodbody & Co.,

Broadway, New York 6,

Central

Corp., 80 Wall

v

.

Jan. 14-16, 1957

Drilling—Report—General Investing

Street, New York 5, N. Y.

Dec.

tion annual meeting at the Bar¬

Bissell

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

.

suit their indi¬

purchase
fundr comprised
of
equal monthly amounts aggregat¬
ing 5% per annum will operate to

and

Field

J,

Co., 14 Wall Street, New York 5, N. Y.

(Santa Barbara,

Biltmore.

■

Harris, Upham

the
dis¬

projected cash positions.

the 10-year

...

Today's Investor—Pamphlet containing lists

securities

of
its

able prior to Jan.

Investment Bankers Association

EVENTS
r

for

\

Fall

r

1957

cai.)

COMING
In

Guide

selected

with

a

.

Pocket

portion

a

;the bonds will be non-redeemable

13-year period —
Front Street, New

a

46

1,

preferences in the light of

own

The

of the

feasible investing method!

Sept. 25-27,

to

as

a

be¬

Oct.

arrangement is' ex¬
the dual purpose

borrowings

vidual

parison between the listed industrial stocks used in the Dowin the National

them

dates
and

serve

their payments to

com¬

Jones Averages and the 35 over-the-counter industrial stocks
used

to

giving
1957

coordinating

their

appraisal

new

bursements and of making it pos¬
for
purchasers to arrange

.

a

this

sible

And

recovery.

of

delivery
1,

This

„

bank's

the

sales achievement.

"time-less"

only the

issues constitutes

individual

welcomers,

worthwhile

without

of

news

of

Santa

during the last quarter of this year

decline

.•.

again

York.

Over-the-Counter Index—Folder

•

.

of

plus-sign

as

of

April

pected

Seasonal Tradition

a

stock list

steady

a

of

regarded

sector of the

retail

District Bonds—Study—Blair & Co.

1959.

bonds

pf

payments

tween

'vV
Death

American

usually

are

privilege of making de¬

selection

were

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

layed

tions

Yamaichi Securities

—

purchasers
issue the

On the one hand during the August to November fluctua¬

ishly.

for
'57—Selected list—Stanley
Street, New York 5, N. Y.

Japanese Stocks

war

.

will extend to certain institutional

and

Suez

£

loans

on

fering bonds for regular delivery,

general Middle East crises, as are typical with
factor, were successively interpreted bullishly and bear-

The

Inc.,
the

Stocks
Pine

Co.,

&

the bank

by

current

;

over
a
period of several
the bank, in addition to of¬

years,

Self-Contradictory Interpretations of Suez

tax

Y.

N.

5,

Ingen

made

^

and

}',

v

disbursements

granted

interest rate's rise act

the

effective correlative stock market factor.
■;• -■*..v •,1^;
-v.
an

.•

...

Florida—Comparative

Since

..

Companies Paying Stock Dividends—Circular—Moore, Leonard
&

Bank

World

the

market conditions,

Bulletin"—Arthur

Little, Inc„ 420 Lexington Avenue, New York

offering de¬
operating practices
new

'J;r

j-'tiL

Chronicle, 25 Park
•

"V'

/

with

Volume 184

Number 5598.

-

..

(2801)

Chronicle <

The Commercial and Financial

:when-we go; to the ballot box, we

ft

Prosperous Textile Era Ahead

'*

J

""

;•
■

cast

'

•

By JOHN M. REEVES*.

r
the Board, Reeves Brothers, Inc.

Chairman of

When the
an actu-i
begin seri--,

listen.

would

one

no

best judgment; dictate.

our

'

wuu

:

; m •' "

|||^i

r|

■

•

HlCluUrC TOnNCO IRtI3«

to get back to textiles,

-Stevens, White & '

TAMPA, Fla

a

members

<•„*,

*

of

the

h

F

The threshold ofra truly prosperous textile era, of greater J f
stability and predictable profits, is envisioned by Board Chair..
•
maklngi seven * a meagre >ts aspects—iit has beenreovered m
' "n*ls'e°
man R«ms and is predicated upon a wide variety of forces;: profit; has been able and,willing m o.s t adequately, by. -AmericaSJ^^'P^WSandmutuaLAind,.,
which holds a promise of a better next five years than the past
to^hieye: these ;im^ovementS.{
TL
five years. Specifies how this country can absorb 250,000,000
yards of Japanese fabric without harm, and urges defeat for .v
old of a more stable era."'
•
«*
the Organization For Trade-Co-operation bill.

|ii *

ClAifAaic

ylCwBlISj

threat started to become

conscience

our'

as

\ality, only then did we
ous efforts to get our Federal
in spite of the criticism leveled Government to set up regulations.
at us from time to time, we can ■
I won't bore you with a detailed
nil
that
•all; he .nrond
be proud
that nur' indn«itrv. review of this problem; because
ouri industry, review; of this; problem, because
whlch.has eternally had the prob, ? "i sure •y
you're^familiar with

'

:

-

vote

our

ZHowever,

\

.

jahd

-

9

:

■

...

J.

.

rfStew/ifwhRe^f

"

"

*

•

?.

Not that we have overcome

at. day,

we

have

in

1917.

spite
rent

Decur-

our

is

in

clined to

,

;

look,/1 thipk,/
of the',

this^

period of

,

Advisory Committee.

ly in the light

serve for several
this committee with Gap-

be

years on

new

w!?

thou¬
John

sands of years

first

know

M. Reeves

j

of

hand

plishments

toward

ap-

Parel styling and improved
portant, we have prog ess
P
.apparel manufacturing methods. r
point where I now firmly believe.
r
:
we are finally on the threshold of
' Increased Capital Outlays.
u

.

and

every

,

A^l of them ready and will-

year.

.

truly prosperous textile era
an era of far greater stability
era

an

of

and

v .J.

more

an

T'li

^

greater

those

I ll admit

-

.

..

iviill

.

-

is

modernization

par^ 0f

another

this improvement picture

predictable profits; ^at I'd like to mention.

era

tance to the economy
«

.

in

as a

made

whole.

v-othor

1920's

the

since

esDeciallv since

and

World

'tt
A
1-y^u
II.
Although there was a
slackening ^off of -loonj replace-

ixr
War

hiah

rather high

are

We have

changes

many

sounding words and I'm told that

ing to

freely

spend
sp(

parel." ;
; •
Important,- too,
way

which

in

chandise

;
is

this

beine

is

their

on

"

.

ap¬

;

advertised

pODV

nf

a

Sdav^s-

nerioriical

and

Lft

of

amount

comnare

goods

f0.r T7Jr:Sa 'wnn^Dh 'mehHn; 1954 and'55,textilegratify- yertfsing with the amount printed
it is mdus-j oniv ten
perennial opti- mg to note that the
Note the thickmist."

Not

vears

long

heard

I

ago

try is

a

now once again piepanng
again
preparing
Dital
to expand its capital outlav on
outlay
modernization.
Along with plant improvements,

"John M. Reeves sees
improvement over the next six

our wage

months.

it

ithat

•

perhaps

Well,

:

scale today in the textile
industry Is far superior to what

says,

haven't

I

justment to date.
icals, electronics, and again auto^
mobiles

the

During

1921

years

to

/\-tr

i

l A

4-/-v

1 C

Tnp
the

start

out on

higher

to

— or
wage

current

the

on-the-scene

appalling.
pamP

t0jd

of

One

*

a

the

Heard
heard

I

adjust

itself

to

such

a

basis

industry as a whole operated suddenly. It had to be done over
a deficit.' During tlje yea
vears 1951 a period of time.
1955 it operated aft a--profit.'
I think we can look with pride

Anctrinn

least

at

u

men,

j

'

at

Thomas

de-

chil-

and

^

n slam 'by the Rus*

P.

and other

?

rat^\ow°can°weUha^^
iS,-

The Egyptian

a

vandil<s?

affair, though

ques

build
fire under the U. N. We can only

tionable,

at

wait and
prove to
ment for

least served

was

to

be the hoped-for instrusettling world affairs it

„

1? sporting the scores for the

S°lf

tournament

the

at

Invest-

ment Bankers Association Jf ConUx\ll
L1!
vention in Hollywood,
/\v*

/%«,«

«*«••

for

the/ Alden

M.

actually

a

Ergood,

n

Florida,

have been informed that the

we

score

H. Little Trophy
tie between Russell
& Company,

Stroud

Philadelphia,
and
Lord, Jr., Eaton & How¬

Andrew J.

ard,

Incorporated, Boston, with
winning on a toss for

Mr. Ergood
first place.
Also it

was

inadvertently indi-

cated that Mr. Lord was affiliated
with

Lord,

York.

be.

New York Stock Exchange

than we did in the past five

years.

set up to

a

of

CORRECTION

•

.

that the U. N. will

pray

1

Incorporated,

^he nromises of these

jn

as

firm

on

was

J

the

B. Tweedy, a partner, will retire
■

ttavi

•

,

-ren

i

women

u

hnr-rJcr

120 0(W

_

^

in the next five

to do much better
y£ars

1,

in

aro

working in our favor, can we fail

textile

"

;admitted

Eu- /

informant,who

the

^at

be

general -partner

our

.

stories

PPrn^

me

fenseless

past five years,
How, then, with all these forces

the

But

Jan.

will

the same date: .
;
' '
Mr. Knapp was formerly with
in Vienna Graham-Newman Corp;
just as the ^ ' • ■ "<
t.

'

trip and was
only a few weeks ago,
Hungarian revolt broke out.;The

W-

during

timetable

ropean

ot

40%

almost

Effective

seriously upset over-the-counter securities. Forest

i

.

I have

I am advised that
the newspaper linage of nationally
advertised
wearing apparel has
up

Reilly Announce

savin-

"
just returned from

progress.

^the CToSfK- Tn'Se'

our

to

retard

and

.

industry,

not

1938

The

threat that could

asThuee fo?cTto™?d«Sla^

gone

.without

£■

Street, New York City, dealers in

rf a

aeine how much stronger this

asso¬

Tweedy, Browne & Reilly, 52 Wall

of television
television

enTrance
entrance

be

mid-Euro-

didn't exist 10 to 15 years ago.
lxlOLe
Note

also

and Egyptian strife presents

of all

«

will

uation.
pean

fashion magazines, many of which

jby being so long established could

Optimism

for

rise

quickly
scales.

Grounds

could

^

minute ago.

a

circulation figures

and

Lanford

Tweedy, Browne &

Situation

POes

Gables of-

Coral

Knapp

goods markets.

Newer industries, such as chem-

optimism. They start, pretty much,
/with the improvements I had ref¬
to

of the kind

view

«uck-

ago

it

the

of

that any business prediction must
be conditioned upon the world sit-

of labor conditions that existed, diLlm wjn be when reception is in
going back.over the past 150 years, c0lor. Newspapers too, are ever
we have made a remarkable ad- increasing in their impact on soft

been

right with every prediction, and
perhaps at times I've been premature, but I'd like to review some
of the reasons for my continuous

erence

In

been.

s ever

ness

Ffnaily;

E.

'

w

'

•
World

and

cnanaise is neing advertised and
promoted. Why, just pick up any

•cased of being

story, which I believe was face.tious, of a newspaper editor who
said he always kept type standing

'

a

the modern
wanted mer-

L.

t" S S ;S
vigilant to see that it is

L

-

growing in numbers

^

-

,

wearing "apparel as well

o

a

„

Coming along right behind the
agers,

Saxton

fice, with L. Blanche Bowen arid
ciated.

^ vonTatinn-^wni ^
^ r_!,.

new

household soft goods.

as

improved

never

improved fabrics,

J.anes. and: exciting
their accom¬

Most im-

old.

satisfied'as

to buy can
before with

Mr.

erf the'
Ft. .'Myers branch and Louis' M.

.edly the bill authorizing the O.T.C.'

I had the ability and their desire

_

FirS street*Ft!

at 2310
:
Myers,, and 2322 .PonCe.de Leon'

would like to mention. Undoubt-

„

Per-

^ marketed properly if we;dpntBoulevard,- Coral Gables.
know where the lightening will stevens w|n be Manager

Number two is the fact that their

good fortune to

industry is

-V

than they are today.

0

«i

^e;fabri^,c^":

in order, to.spend, money,,buying

ufacturers Association's'Technical

of the fact that

many

Thev'in continual upheaval until it is

denression

a

Dofothy

kins, Secretary.
■?
\
office will be located at

eff?He N° one:of us can function branches

ute to the Southern Garment Man--

time, especial-'

our

-y :

known

neVer

manufacturing associations; How-;-these'prosperous young
ever, I do wish to pay special tribbe 15 to 20% greater in number

gains;

short

;

Treasurer, and

mustbe arrived at. rK tills,
done, our■ .industry jvill.be

!s

str^e next- '
adults will'
There are , a few other points I

truly remarkin

that pughtto be told.

equitable balance jo* each.tame

Not

our young adults.

only are they prosperous, but thqy
are prosperity minded.
They have

acclaim should, be not jlist for needs but for wants.
given to the leaders of many valu-^ Furthermore,, beginning this year,
able, and well organized garment and going, on to the middle 1960's,"

many

made

.

.

|st

pros-

Similarly,

..

able

industry today. I wish time..

would permit rtiy discussing .some
0£

:v

over-

leaders

our

^"b" spSi^^eto

'j
;

^ Therefore, Ithe inspired
believe gregt trib-; peri^y of
ute
due to

:

problems/ ;
arein^-

w e:

h ig h 1 y
g., • •

streamlined; and

•

competitive markets. <

problems, by any means, but
come a long way since I
first entered the textile business

our

Abbett

He has

&

Co.,

with

been

New

Eaton

&

Howard, Incorporated of Boston,
for the past several years.

Weekly Firm Changes

V. J. Zergebel Opens

The New York Stock Exchange

periods, I might add, were
peacetime years, except for the
latter part of '51
and early '52,
when
the
Korean
conflict was

Quotas for Japanese Goods
ALLWOOD-CLIFTON, N. J.
to the fact that most of us today
Of course no discussion of the has announced the following firm Vincent J. Zergebel is conducting
have pension programs Wjhich were
a
securities business from offices
unheard of in prior generations, textile outlook can be made today changes:

and a year, if anything,
which was detrimental to textiles,

special educational funds set up Japanese problem.

Both

In addition, many of

ending

:
-

for deserving children of

have

our em-

without

0f

you

into

taking

a

However. I believe we are lax
today in our recruiting methods
at long last being overcome. And
to stimulate new blood to enter
furthermore, the so-called cycles the textile industry. Much mo^e
of peaks and valleys have now emphasis should be given to set¬

Drevers

dissolve

will

76 Surrey Lane.

at

December 31st.
Howard

recall that two years

may

ployees. We have recreational fa- ago when this competition first
rilities, organized athletics and all appeared as a serious threat, I
profit of all other industries com- kinds of benefits that never ex- pointed out that the only solution
bined, but nevertheless the textile isted when I first entered the bus- was a system of quotas.
For a
while—it was about six monthsindustry finally could prove, over iness 40 years ago.
'
wasn't

&

Eric

the

account

Perhaps some

big profit, only 2.2%
of sales and only half the average
It

"

us now

from

partnership

Brothers
Lewis

.

Cullman

S.

will retire

J. S. Zurkow Opens

Cullman

in

31st.
Salomon will

Jerome S. Zurkow is conducting

December
G.

retire

partnership in F. L.
Salomon & Co., December 31st.

from limited

a

securities

at

450

business from offices

West

End

Avenue,

York City.

.

/'a reasonable length of peace time,
that

manyjof its difficulties were

evened

out

ting

considerably.

Perhaps you might compare our

industry to a game of golf. We're
so used to being in the rough that
we're

past-masters at pitch¬
What I'm foreseeing are

now

ing out.

fewer hooks and slices

off the tee.

Another tribute to our industry,

during this 1951-55 period, is that
management methods were greatly
modernized.
This in itself is remark able
old

because

structure of

ness

unlike

is

centuries-:
busiother major

the

the textile
any

When you
90% of
our output is manufactured by as
many as 600 independently owned
companies compared, for instance,
with only 5 compahies in the au¬
tomobile
industry, one wonders
sometimes how any form of sta¬
producing
consider

industry.

that

more

-

than

bility is possible in our

present-

Mr. Reeves

before the
Sec-

"An

addi- ess

Annual

Award

bv

Luncheon,

.

6*° 1956.




textile

up

universities.
tional

NEW

ISSUE
is

This

not

After

facilities

are

scarce,

how

we

needs.
I

might

is

that,

add

along

ELECTRONICS, INC.

LING

expect to get the protec¬
tive students the industry direly

can

of these Securities for sale. The offer is made only by the Prospectus,
published on behalf of only those of the undersigned who are
registered dealers in securities in this State.
, .

offer

an

This

in leading
all, if educa¬

courses

$750,000
6% Convertible Debentures Due

with

December 1, 1966

employees in any industry, textile

workers are today self-supporting
^n^.,^r^5^essi,Y9 ,ln. ^elr Jlvl/}£
habits. They think independently
9
have a far greater freedom of
how and where they want to work,
I think this was evident, for example, in our now there is in this
recent election. I
convinced
am

country

no

so-called

the

average

labor
of
leaders, the

such thing

suite

In

vote.

of

the

labor

as

a

rantings

American makes his own

choice.

think

I

PRICE

nast

there

election
is

also
such

indicates

that

thing

AND ACCRUED

183.333 Shares Common

INTEREST

Stock ($0.50 Par Value)

Subscription Price $3.00

per

share

offering to the holders of Ling Electric, Inc., the right to subscribe for the
Common Stock at the rate of 1
share for each 6 shares of Ling Electric, Inc., stock held of record
at
the close of business on December 7, 1956.
The subscription offer will expire at 4:00 P. M.,
Central Standard Time, on December 27, 1956.
The

Company

During
at

the
is

is

subscription period Perkins & Company, Inc., may offer shares of Common Stock
less than the Subscription Price set forth above (les3, in the case of sales to dealers,
to dealers) and not more than the highest price at which the Common Stock
being offered in the over-the-counter market by other dealers plus the amount of any

the

prices not

concession allowed
then

concession

this

100%

allowed

to

dealers.

Copies

of

the

Prospectus

may

named

in

the

Prospectus

and

'

be obtained in

any

.

State only from such of the several underwriters
securities in such State.
^
;

farm vote, a racial vote

Gr

as a

no

sort of hyphenated vote^^at
^ ghould be. We are.

any

Rnd

first

and

last,

Americans,

and

others

as

PERKINS & COMPANY, INC.

may

lawfully offer such

LEO G. MacLAUGHLIN

SECURITIES CO.

New

10

(2802)

The Commercial and Financial Chronicle

where

lew Process of Competition
To Maintain Dynamic Growth
f

President, Sun Oil Company

!

concepts

of competition

progress

in

sumer."

competing

brand

of

From

the
right store
against finding the
he wanted.
The

locate

odds

size

any

brand

one

to

satisfy

who

the

contend

restrained
centrates

"•

-

standpoint
that

when

J

of

competition-is

in

■

merchant con¬

a

Jones'

seeking to win the
Agrees

anti-trust policy in order to permit realistic com¬

the epitome

of

operation

or

marketing.

is

There

you

concepts of

conflict

be-

tween these concepts, and the con-

''sessions

tainly,

;^V

progress. Cer-

flict creates

i-ainly it often

for

problems for

-

ideal,

that
Distribution

Old

The first

New

of

process

1

peddler

concept -of

distribution.

f

stantly

older

concepts

tastes, the satisfaction of

purchases.

Even fewer

busy

were

brands

the rule—you see the

peddler

Often the
of

the

is

Robert

G.

Dunlop

the

is

new

rejected,

perhaps

<or

but

and

still

looked upon as somehow wrong.

for

Let

give

me

the

you

example.

an

construction

of

supplied by the U. S. Army with
long-handled spades and wheelDemonstrations

were

held to instruct the natives in the
of

existing

H

Let

of

a

moment, examine

....

...

,.

the competitive ramifications ot

this system
First, it

seems to me inherent
peddler concept that the
producer of goods thought not so
_

in

the

Co forward at greater speed.

to take

But the natives' idea of how to

dig

trench involved the

a

short

handled, hoe - like instru¬
called a kadalie, and baskets

Tt/Vii/iL

*-»

4-/\

/-ir\

in which to
the

a

-

ment
•?

of

use

dirt.

Ttv»* r

L

/\v»

carry,

24

hours

and

the

wheelbarrows,

iihorn of wheels, became the new-

ntyle

baskets

merchant

Third,

the

pades had been discarded for the
kadalies

moment he had delivered them to

the

one's head,

on

Within

/^1

a shipment from him.
Second, the producer lost most
of his interest in his goods the

for

head-carrying.
Undoubtedly the natives wondered
why
these
crazy
Americans
thought such a heavy basket nec-

the

skiiLs,

as

financial resources,
£enerateIn

ctssary.

calling

well as
was able

all

to face the

in

cirientl It but.
incident;"but

much

the

it varies

know

is

human
human

the

same

nature
nature

world

in

an

the

United

lag

average

c>f

is tested

the

to

clinical

dine the

use

common

in

the

is
is

you

States,

of about

15 years between the time

drug

an

over;

only in degree. Do

that

(here

at such

a

new

satisfaction

experts

the

and

of the drug becomes

the

medical

profes-

cion?

Dr. George Gallup recently cited
(his
in
fact
expressing
concern
(hat similar investigation shows a
< W
time

lag of 12

r^tisfactory
ries
and

in

j-m-x

between

years

testing of

public

theo¬

new

opinion

jzuu.iv

surveying,
suivtjriiis,

the time the theories become

generally

accepted

and

used

public opinion analysts. '
_T

..

,

,

bct^between old ^deas and

practices

I

have

with concrete

drugs.

Ever

volved

>dea7

in

and

by

'

.

NoWj the two examples of
f

the

mentioned

con-

so

much

new

rioncern abstract

more

is in¬

between

old

t ration

llom

from

on

the

oil

distribution

•From

add,.,,

by Mr.
indust.y iba
Mo., Dec. 3, i9oe.

tire

an

Oil




D.mlop
Group,
-

bSt.
—

coming which

was

sumption,

and

was

the

New

Ker°sme

dropped

of

at

Dynamic
b

.

j

,

h

the

same

lag

far

fh

than

found

in

What

an

of otheTiLustHef^
other industries.

progress

.

me

expert but

as

a

often

old

Mr.

it

was

Jones

discovered

President

had

an

assorted

what

on

bill

introduced at

was

have

been

the last session

written

in

donel

be

*

/

•

•

..;

■

.

•

•

and their names are
appearing in
significant advance" in agriculture.'

Well, it is

trial
V it
.

uses

cf

his

was

the

publicity
:

-

.

about

;

.

.

.

"most

a

'

,

fact that the idea of research in increased indus¬
farm products was not original with the Senator, but
a

great

emphasis.on it

imagination and

now.

that

energy

brought about the
'

cm-

> •

„v..»,

.,

Just how his proposed "crash" program of research will

shape

I don't know,-but there seems to be reasonable assurance that
the appropriations for research on increased uses of farm
products
will be greatly stepped up and they
may provide for subsidies of
some farm products to make them
competitive in the field of
up

com¬

modities* which

industry

as,

for example, from

on

the boards of the

alcohol

Because of his direct and active
interest in the consumer, the

and

endorsed

strangely enough Senator Capehart's name appears in
very little if any of the publicity.
Men who have been plodding
along with the subject for many years have become revitalized

kibitzer,

that.")"

Con¬

the principle and the
a commission to make
preliminary studies

'ha<rappointed

can

of

newspapers

The Republicans

But

Here is the

*

that

only

inability to make them competitive.

at their San Francisco Convention

/

The first ingredient, it seems to
me, is a direct and active interest
a moment—. in the consumer. (As a
consumer,
in the days of mother and father, aware that a large number of
proor perhaps grandmother and ducers have a direct
and
active
grandfather.
When Junior was interest in ~
'
'
*
me,
I can onjy • say
taken to the local
store—usually that "si
"something good will come
as the "clothing" store— cf

appropriation of at least $100,000,000

an

program

thousands of words

gress

of

I would suggest, and again
emphasize I speak not as

"crash"

.magazines about the possibilities of this research.

•

ingredients

plan calls for
a

Ever since his

the

...

the

up

"

in

Consider shoes, for

known
how

So his
set

because of the

thp

direction, and some still
I recognize,
of

are

He says that ever since the
Department
established in the Administration of Abraham

war.

was

of research in increased industrial
of farm products. There has
long been this sort of research
and it has advanced some 11 uses which are
being held back

industries

to

at

in

uses

An equally
distribution

themselves

*

on

seems

Agriculture

to

behind.

lend

about what did happen.

are nervous

duction.

'nd

„

others.

of recipe

of

Carlisle Bargeron

our agriculture research
emphasis has been on how
help the farmer produce more. There has been relatively little
research on what the farmer should do with his
increased pro¬

Distribution

1o

c

marketing of gasoline.

country store. Examples could be

.

too

to

examPle can be t°und than ln"the

let

nuSr
nualber

of

Lincoln all of

creature

concept 1 wish t0 discuss with you
today, and I shall identify it as
dynamic
distribution.
No
better
/

the

was

because

E.

except in times of

'

Th

dynamic distribution?

a drum

fall

Senator calls his plan a "permanent" solution to the
farm problem.
He says that all of his adult life there has been
a
farm problem

A revolution

of it.

illus"

an

.-out of

to

be

.

now uses. This car. bring some opposition
industry. Two of the foremost matters

scientists

are

the

with'gasoline

blended

of subsidized grain for

use

and

the

making of fuel oil

grain, -r

•

.

-,v

pro-

three

-f

four

or

turers.
rYiiav>+

If

d

d^forTnt mlnufoc™

Junior

fin,-!

yf

was

lucky,

he

o+iri/-.

f

.u..

s y e 0

o

shoe that

SFirvviE
*?e'-

+V.O+

r
i?'

Jones would suggest that in only
a
minute, with his handy shoe
stretcher, he could make a "B"
width

From

J,

product.

.J commu-

He seeks to

n;Pat0 rhv^tw

consumer

tl.v

the
k

C"

that"

Junior

Co.

standuoint

of

those

adveAtfoo asln'oco!

The . producer is-vitally interested in seeing that his product

Inc.,

available

<*-

K services are associated. with the consumption of in,

^

are P^perly performed. The

of

little /al consequence—first, because it was

largely ineffective in

consumers^^ to

the

store

deeply

that the

„™u^?er sponlored on?y dliC,er's inhterest,
proved the
was

to* the

consumer-

-™d to

hcudnA
advertis na as the SW

Pa.

—

of

The

Mover

&

on

Hess

&

*

"Wm,

E.

Pollock

&
Co., tm
Municipal
Bon

Government
dealers

announce

York

Arnold

M.

Exchange, will be merged
and
Woodcock. Hess, Moyer
&
Co., Inc., 123 Broad Street South,

dent in

office

will

Treasurer

be

of

the

New

formed effective

Co.,

January

vard

Cowan

their

9643
and

the

election

c

Vice-Presi

as

Beverly Hills, Cali

Santa

Monica

Clarence
in

B.

their

Boulc

Ruch

New

c

Yor

office. 20 Pine Street.

<

pro-

his product
P°/h ° Sa^

lsiaciomy ine produc^perforftmd
proauct performed
Continued

Woodcock,

member

1st.

isfactorily the
11

and

j

Elects Officers

Stock

conveniently

is

directing

PHILADELPHIA.
business

investment

t0_y ll

Wm. E. Pollock Go.

& Co.

sr.®'

uct and to persuade the
fn

To Form Woodcock

is

the

in

required,

critics'.point; it

fore

was

principles of dynamic distribution.
to
a
greater
degree
than • i do

(vhich

almost everyone feels he's an
,«rt.
I have economic theories
specifically in mind.

he

products

industly

days when

.

TraS™/wfoch

thanes

events,

necessity to adapt

to

_

deal

objects—spades and

conflicts

J0"**4'.1 havl dr™n.

the

way

to be a very sensible
plan is that of Senator
Capehart of Indiana, advocated at the last session, in
campaign, and to be reintroduced at the next session. The

his

both abetted the accelerating pace
of mass production and mass con¬

t

We may be amused

whichever

politicalVheads

What

Homer

all

in

your attention to this

farmer

average

But the fact

amount which the merchant, often course, that the nature of the
l
.ln
S a?,
mer" Product plays a great part; some
cnanaising

Cer¬

Congress,

as in Russia where political heads
because of the lack of
production, in this

gener-

representative for

At

good example is the
.of automobiles.
Other
amount of competi- have
made substantial

H011 wili.ch existed jp the marketplace of consumption vvas that

them.

last

remains that in the next
Congress there will be
plenty of rural Republicans just as loud-mouthed as the Demo¬
crats that "something must be done for the
farmer."

was

representative

them, and

to go bankrupt.

these tools, and

the proper amount of credit-

poor

a

of

one

them.

or

trainers

or

part-time

a

any

soon

for

us,

the Army much in terms of consumers, but
departed, happy in the in terms of which merchants withthought that now the work would in convenient. reach had the cash

use

only

the

China-Burma-India pipe line, the
native
laborers
of
India
were

harrows.

H

to

response

the

plain fact is that organized labor was more responsible for the
Republicans' failure to carry Congress than any farm unrest.

him improve his business

merchandising skills./ He

ally

in

shoe-

a

existence upon him.
But
of his suppliers could afford

none

a
strict sense, was accomplished
—that is, the product managed to

consumer

During

buy it. Distribution, in

devoted-to

months- of

Frankly, these statistics are not very convincing. In several
places where the statisticians claim a Republican candidate lost
because of farmers'
defection, there were many other factors such
as
the impossible
personality of the Republican candidate. The

string

get from the manufacturer to the

delayed,

or

accepted

to help

who would

grip

old

methods may have forced

conceptl in action.
The
purpose of the marketer was to
dispose of his product to anyone

strong that

so

was

in Washington

the advancement of arguments that the
Republicans simply must
be more "liberal" towards the farmers.

m0^ent^m

"ought" to be.

forth¬

Republican statisticians have already come up with figures
their Congressional losses in farm districts.
They will be used
the next session against
Secretary of Agriculture Benson and

—

of

Congress

parties, nevertheless,

you

<he way things

the

-N

writer's experience

of

country

,

clash

with

at

production.
It is surprising, however,
just how few fell in the last election but both

much

very

his wants, or his pleasure with his

days

progress con¬

them

much

worried

were

,

oped by the
realities
of

about

-

But just

./

think back to the earlystimulating his desire for greater
.
+vjL consumption, and thus adding to
of oil marketing
from the
thp
of trade and the
days when gasoline was sold at
expansion of economic activity.
general
stores
and
blacksmith
No one worried about Mr. Jones
shops
and,
by
and
large,
up
the
through
period
when
the either
except that he pay his
divided
station
selling
several bills. His inadequate business

ideas devel¬

*

-

By CARLISLE BARGERON

more

several

the

fall

deeDlv and Continu-

about his

Concept

concept I shall call the

r

devoted to them and it is my firm belief
that in the controversial legislation that Went
back and forth, it meant scarcely $100 a year

this

distribution

of

*

*

*

,

legislation went.

me.

Few

way as regards
American
in¬

the

conceot

d t

and

you

in

ddlfer

P_

*.

were

{hing^wrong8 Ve^y few^ho werl

} ' fLd

*'

■

the problems of the farmers have always been
to the forefront.
L have seen almost entire

/

repre-r

seemed

even

In this

Mr.

of open com- /
/

hear,

coming session.

to

Today I want to talk with

might observe that misunder-

dustry.

'tb

While to the theorist Mr. Jones'

type

about two theories

landing is frequently the law of

«:eems

ideaL

again

little of them all.

a

petition in action.

petitive concepts.

we

is

store

sented

should

we

on

one

Jones carried

"

Although the much dramatized tillers' of the soil are becom¬
ing fewer and fewer in relation to the rest of the population
they are still- politically highly articulate and, notwithstanding
that the rest of us heard about them and their
problem aplenty at
the last session of Congress, we are
apparently

*

-

those

.

Presumably, his operation

Robert Browning observed that
"progress is the law of life." I think

'

E

against other similar teams that likewise
our

Washington
Ahead of the News

*

"

carrying a full", line-,
brand, to the exclusion of
other brands, the situation of Mr.

re-think

'

all

Dunlop compares old method of distribution
with present dynamic practices of the oil industry which make
allies of producers and local merchants, improve retail com¬
petitive effectiveness, and create a team "which pits its talents
are

**

*

■

stimulated by advertis¬

were

From

odds with "the realities of
effectively to serve the con¬

patronage and loyalty of the consumer."

'

'

k.

ing to ask for it.

at

more

to
and

who

Mr.

are

aged
laced

style

in

Asserting "competition is not an end to be glorified in its own
right, but a method whose sole purpose is to serve the interest
of the people," Sun Oil head executive states that classical

|

particular

shoes could be purchased; second,
because the customer who man¬

merchant, having spread his in¬
ventory investment over too many
brands, had too limited a selection.

ROBERT G. DUNLOP*

By

the

^Thursday, December 27, 1956

.

page

Harry D. ^Weiss Opens
YONKERS, N.
Weiss

is

Y.

—

engaging ih

business from offices

22 Broadway.

:

a

Harry

Lincoln Rosen Opens
D.

securities

at 30

South

NEW ROCHELLE, N. Y.
ooln

Rosen

vestment

is

conducting

—

Lin-

an;

in-

business from offices at
150 Overlook Circle.

,

Volume 184

Number 5598

..'The Commercial and Financial Chronicle

.

(2803)

than

Business and Financial

the

to

tions

houses.

existing houses
will become

Forecast for 1957
J

the gamut of

real'

estate

automobile
havno

raise

helping'

with

heating

subsidies,
/a*\

t

connec-

lighting

the

Reaction

Law

will

of

with

ulti-

and

other

I

r.

v

'

*

.

'

*

•

''J

do this in or- long-term financing -will*'be--too
der to enforce expensive.
^
- v .
• .->
t h e Employ- '
(15) Tight money will. cause
•".me n't Act of .state, municipal,, and town gov1946. 'this is-ernments** to
postpone plans for
\ the b as i s of building roads, schools,' and hosmy Out lo o k pilals except in;cases where tile
\for 1957, tern- Federal Government pays most of
per.ed'of the cost. This will put a damper
course
by on many lines of business.
V.-\
Russia.
•
(16) Owing to'these increased

*

"

,

.

.

-

-

(1) World
War

"not

rates, state, municipal, and

money

will

town

bonds,

in

have

been

5

III

'price.

start

1957. .;

although tax free,
declining rapidly in
Most
financial; advisers

ing inflation.
.with

it

kept'

continually

tww

telli-int

financial

and

;

'L/.

*.

h

^

n

Older .houses obsolete.*.

v

•*

in

***

•

populaUons

both

in

the

United States and elsewhere, will

t

,v

Th eiif olio wed theMotor Car and

:<28) r^urgecommercial farms, international and Other Affairs
Large commercial iarms internatinin.i i.nri nther Affair
been Enjoying, dius a cnemir?!
ueen
en loving
will vcontinue*, prosperous, iSmall •"*- "
■,
^
farms on the fringes of cities will*, (42) During 1957 the Admihis- and Building Boom These coming
be more valuable; The outlying tration will do everything possible
L acc°unt for the great
medium^sized farms will be both to keeP us out of war. "It certainly 5™ P?.nty ot tbf. la?; ten years,
expensive to operate and hard to will not get us involved with Engn kom<wllJ witness a busisell.- - '
•
land, France, Israel, or their allies. fnll
,
J; '
W?
(29)- The nearness to schools, *" (43) So long as President Eisen- N i
it™3
-p60tromc and
.churches,'stores,* and bus routes hower is in good physical condi'
ineretore> be 0P~
will';become a more important tion (as Commander-in-Chief), he
'_
factor in the re-sale of homes.
will back the United Nations with
*n dosing, I urge my
1.(30)* Those wishing to own a our Army, Navy, and Air Force; friends to read the 8th Chapter of
well-located home to occupy, will This is the only way in which he *
.'Bible Book .Deuteronomy,
find 1957 a good year to buy or will - be tempted ever to enter winch was written 3,000 years ago
build; but a dangerous year for World War III.v;;
^ ; a. is as applicable today as ever,
speculation.
(44) The United States will not Inc.Ldentally
mentions Egypt,
use the A-Bomb or H-Bomb dur- ?*££ ?!e" .th,e,n Was.an ^portaiit
Stock Market Outlook
factor in

pl^^Vhernical

,

n

,

.

.

+

.

....

/o-i

\

Tx

........

.

r

„

.

...

.

,

in„

world events.

.

1957 or give these bombs to
other nation.
However, to
save tbe United Nations, President
ing

.

if! 777^^?u!;1Si?*.^?_r..any,onJeI. 0
"Jw forecast the stock market for

1957.4 The Dow-Jones Industrial
Average now around 490, may
** ine to 400 or advance to 600

any-

Geo. Woods Director
George D.

Eisenhower will give that organi-

for such money that these nonzation all the bombs it wants.
taxable bonds will sell at higner
(45). 1957 should be a good year
fenals and labor.
prices before the year is out. This au™Js
??/*
(32)
All'investors will/want
fn'8 t0 Ct°h'
(4) All businesses will be con- postponement may also reduce the
yorttiy
fronted by increased competition, price of steel and other materials. "safety," but wise investors will
causes.
You, however, should give
.both within their own industries
(17) The money managers for 111 sl aeciae
wnether they also
K+ork vvhirh ^hmAfd vnn
r^rniit
(3) Manufacturers will be faced
higher costs for both ma-

;

'in*

program

v^*i- ^7^*7 Feader s^ould have continue to increase. Important
t little stock in one ot the local new discoveries and inventions
barkf\™ which he has his ac- will take place. Twenty years ago
counF Bank stocks should make we Were enjoying the prosperity

,

forecast much lower prices for
witness
grad- such securities. It is possible that
ually increas- the postponement of such building
" *
"
plants may so diminish demand
(2) 1957 will

Roger W. Babson

business

othl'r

or

mind

Both presidential candidates, in-Jittle business, will be postponed.*

their.pre-election speeches, proni- Most corporations will find it difised Peace, Prosperity, and Prog- ficult to get new short-term mon:
ress.
They stated that they must ey*"&t any price in quantity; "While;

buildina

anv

vestment,
should
be

mately rule, yet periods of prosperity can artificially be extended
by
manipulating
money
rates,

with

*

Although

and

props.

some

hurting others

-N^ inventionsin

(27)
tion

The

prices

locations and

money

factors in order to offer advice and predictions for 1957.

'

Action

Modern kitchens

speculation.
will continue to

business, financial, stock market, international, and
,

Standard.

Iocs*

buying

"must."

a

for

Noted Babson Park investment analyst surveys

by

(26)
Acreage' near
proposed
shopping centers will be excellent

By ROGER W. BABSON

„

Better

be .secured

can

11

the
—w

board

Woods, chairman of

of
wx

The

First

Boston

Corporation has been elected

.

a

^^tt

want "income" or "profit." Only
the
benSicfarv
(5) More advertising will be will now arrange their financing by luck can you obtain all three sellin£r
iq[r7
h
he
-necessary
in 1957 if profits of needs for two years by either se- 'eaUires
with certainty during cial,y gQod yeai. f'r such
and

from

other

industries.

each corporation, large and small,

-

•

do

the

•

an

manufacturers and retailers

are

curing the

to

(6). Failures

increase

Thousands of

bilities.

•

will

be wiped
the largest

of

-two

small

non-taxables.

con-

Cost

C)

living

of

slightly during

will

rise

1957.

(8) Most labor unions will hesito
make
public fights for

shorter

hours,
"fringes."
(9)

Europe

but will

work

pensions,
must

pay

so

for

and

much

give,

near

(34)

During

with

6%.

safety,

a

..

1957

good

utility

(46)

Householders

will

avoid

poking unnecessary purchases on
Instalments until the international
situation clears. Several feasible
plans .are. being considered, one
which is to have a very small
tax on every §allon of oil moving

through the Canal with the understanding that the money will be

used for financing the Great Dam
on the Nile River which the
Egyptians so much need. This
would make unnecessary any exepropriation of the rich Middle
East oil reserves and any renegoan b01?ff, tiations. Either expropriations"or

borrower•?(!,

curities then tie-up the

for oil that it will have less

more

will

yield of

corporations will be much stocks should be attractive for
disappointed by their inability to yieid and marketability
The desecure funds during 1957, except mand lor electricitv wil'! continue
by selling convertible preferred to increase throughout 1957.-,
stocks on terms very favorable to .
/q-\
f
investors. It is well to'issue such
(a^,.ea
securities when money rates are,?"..,.
e
9
low because the advantages con- k
.
• .*; "^,.ax
J* whk,,?!11!*
tinue -for many years; but hot* .... .
,
d
low
hi ackets
when money is tight,-as such se- w.
y aur ng i»o/ non-taxabie

-tate

higher wages,

which

lower

buy, during

can

newer

zation.

i

forecast

out.

-will face bankruptcy or re-organi-

f

I

One or prices for most corporation bonds,
corporations(19) Many of the smaller and

will

cerns

instiPu.

tions to make drives for funds.

Investors

reducing their requests.
(18) Prices of corporation bonds 1957, well-seasoned preferred
will not recover so. quickly as the stocks - ; (preferably
cumulative)

in

to numbers and lia-

as

now or

(33)

equal those of 1956.
.1957, both

funds

necessary

pwp

George D. Wood.

director of Commonwealth
Refining Company, Inc., it

Oil
has

been announced. Commonwealth
Oil Refining Company, organized
early in 1954, is in the process of
completing construction of a new
refinery near Ponce on the south-

long number of years at* Taxes
Cl'eQlt renegotiations will stare our in- ern coast of Puerto Rico.
(10) Unexpected events will oc- high rates. '
.
'
,during' *957 S'and
non"tarable
out, ot ™ak,n* further tor"
•cur during 1957; however, as a;
Joins Eastman Dillon
(20) This means that 1957 will
ir-dlmand-.'61*"'lnvestments-:, .
,
;
whole, business will remain fair, be a good year for investors to..f
.
/
.
. (47)
The big thing that Russia
(Special to The Financial Chronicle)
'
"but with smaller profits..
switch from low-yielding stocks
■«
•*
'wants is not so mqch the oil fields
LOS ANGELES, Calif.—William
to attractive bond issues.
(88) I am not now prepared to as freedom to pass through the
Gross
has
become
affiliated
Money Outlook :
-v.
• ' •
advise readers who do not care'Dardanelles. This will be an im- n*
•

money

for purchasing other goods, - for a

...

,

..

.

-

.

-

,

.

,

T
<

;

(11) As foreign countries must
in gold or dollars for oil,

pay
*

industries

their

will

handi-

be

tapped, unemployment will in{crease, and pressure for aid from
'

the United States will be

*

greater,

,

Heal Estate Outlook

,

telligent switches. I am willing
will ;re-' to say, however, that readers
quire larger margins. .should not get panicky and sell
employment increases we may ex•
(23) Real estate in large cities their oils
Even Gull Oil, which
pect a relaxation. I am very glad will continue inactive- with 'de- has the largest interests in the

long as we have full employment
•in thie United States; but if un'

'

for income, but only for profit, portant feature of

(21). Home building, corporate As above stated, the Dow Jones
expansion,
and
municipal
im- Industrial Average may approach,
provements will decline in 1957. during 1957, either 400 or 600. It
Therefore, it will not be a good will be very easy to make a misyear for speculating in real estate, take by either buying or selling
(22) Interest rates on mortgages. stocks at this time, exctpt for in-

(12) The Federal Reserve Board'
will not relax its restrictions so will be higher in 1957t
'

•

Cutler

will again

Mr.

Robert

Mr.

be

Eisenhower's adviser.

"federally"

Loans not

guaranteed

dining
prices
due
parking facilities.

to

lack

rich Middle
should not be sold.

of very

-

East

(13), Owing to the tremendous"
(24) Suburban real estate will
(37) All sensible investors will
of employees, suppliers, continue
active, but fewer newcarry good bank balances and re-.

*

*

retailers dependent upon

hquses will be built. Houses will serves during 1957 so as not to
large corporations, these will be be for sale by executives who have be caught, whatever happens,
first to receive bank funds.
lost tfteir well-paid jobs.
.
(38) xhere should be no panic
(14) Many plans for expansions
Purchasers will give more -m the stock market during 1957.
of plants, by both big business and
attention to the size of the lots stocks will either fluctuate near

and

the

their

present

levels

or

forecast that the Republic of Pan-

vvill attempt to undo the
"steal" which we perpetrated in
1904, in order to build the Panama
Canal.
ama

(48) j wou]d be unfair to readq£ this Forecast not to men_

rg

the

great importance of Mr.
Eisenbower>s health. In connection
Uon

else

All

Incomplete?

money

to

rather,

one

buy

stocks

might

sell

in

New Issue

.'

stocks

.

Annual Bound

dustry.
do

and

(2)
not

j

r\

WHITTIER, Calif.
Miller is

Co.,

now

13412

Jerome B.

—

with J. D. Creger &

Whittier

East

Boule-

vard.

150,000 SHARES

Erie Natural Gas

Company, Inc.

COMMON STOCK
A

,
.

(Far Value Fifty Cents)

To be Offered in Units Each

purchases to the stocks of
the leading companies in each in¬

Sets of "CHRONICLES" of

.

With J. D. Creger

to

•your

.

....

(Special to The Financial Chronicle)

•

,

1957;

(39) The way to make money in
the stock market is: (1) Confine

A Number of Beautiful

^

will

get out of debt.

"FOR SALE"

rui.^s & co" 61,a wusmre BouieWJ!S i01'1ic,1y vvitn
Dempsey-legeler & uo.

of these shares having been sold, this announcement
appears as a matter of record only.

gradually slide downward or up¬
ward.
It will be risky to borrow
Are Your Records

Union Secu-

settlement of

fields,,

number

-

a

the Suez Canal problem. I further

Diversify moderately
to pick out win¬

try

remembering that, whether
you buy or sell, someone
(prob¬
able as smart as you) is doing the
opposite at-the same time; <(3).
fStore up cash when most: people

One

Share

Plus

a

Consisting of

for

Warrant

one

Share

(75,000 Units)

OFFERING PRICE:

TWO DOLLARS

ners,

Various Dates From 10 to 50 Years

Available in New York

City—Write

or

•

♦
,

are

Phone

REctor

2-9570




c/o

Edw)n L. Beck

Chronic!?, 25 Park PI. N. Y. 7

bullish;

stocks

.

>

use

when

this

most

cash to buy
people

are

bearish.
(40) We are no longer on the
Standard but oil a Political

Gold

UNDERWRITER

'

!

Mcdonald, hoi.man & co. inc.
70 Pine Street
New York 5, New York

BOwling Green 9-5160

12

The Commercial and Financial Chronicle

(2304)

tionist.

International Travel and

And

much

he will then

By RALPH T. REED*

Stating

hotel*

new

may prove as

health of

important

as new

steel mills

increase dollar income of overseas countries, including tourist exchange rates, large promotional cam¬
paigns, abolition of travel taxes and red tape, and training of
tourist-handling personnel. *
of

Promote

Both

Security and
Prosperity." •

which

IPs

-

ening

relationship
of

heart¬

a

is, in

I

thought

agreement

In

of

•

broad-think-

of

men

affairs. But

as

knows

anyone

been

has

in business for
Ralph T. Reed

20 or 30 years,

such

general

agreementwith
principles

guiding

your

represents

big

a

step

a

good many of our most powerful
were
strong against
any

voices

program
or

of action by private busigovernment which might
involve

further
of

the

the

in

us

affairs

world.

the

of

rest

The

forces

making
for
this
change of attitude are many,. We
all

—

V

*-

*

*

a"dPVTnf5

into

come

them

with

contact

f

*:

.,.

jfL

^at ^

fHecis

fro™ tourism has made its effects
.extremely hard to measure #ccurateiy.
a result, it appears that the
economic implications of tourism
we<;e

^C0"

exam^e wnue
whi^

11

affairs.

business

through
r e s

most
!

our

d

p o n

one

offices and

own

.

other

'dozen

the

when .quite

wish

business

little

simpler/

1

But

today
;

is

this

the

are

frankly
just

were

■,

the

of

tempo

'■time—and, quite honestly,
enjoy it. It's truly
dynamic tempo, that

•us

.

our

most of

exciting

an

may

mean

great future progress throughout
"the free world. While the present
*

Middle East crisis is having some
•effect on our calculations for the

;future, I believe strongly that
should

retain

confidence

long-range upward

we

in

a

For the

curve.

forces of economic progress in the
1
.

world

today

of great magni-

are

tU(je

V

i

n

»

Importance

i

In

,

of

,

.,.,

Mobility

trying to define these forces
so
changed the face of

that

have

the

c

rvir

world

in

the

last

quarter

century, I find

one word cropping
again and again in my thinking: the word "mobility." The
mobility of persons
of produp

i

...

t

ucts

t

capital

...

techniques

of

of

...

of

ideas. Of course,
mobility has been speeding up
steadily for the last two hundred
...

years.

But the

made

in

War

is

I

anything

progress

we

have

mobility

since

immense,

compared

that

happened

World

in

to
the

long decades and centuries before,
And this is

ture

doesn't
This

touch

—

on

all prethe world

ordinary

commentary

do"b,e wbat theV ware m 1848'
Meanwhile, we hear almost
unew developments which
.

bus

companies

on

one

or

as

by
Foreign
Ycrk City.

two

like

to

aspects

of

it relates to

two

Mr. Reed belore the
Trade
Council,
Inc.,




are

in

the

of

vastly improving the
capacity and speed of their equipment.
More
people are getting
more rapidly to where
they want
to go—for vacations and for' busi-

process

ness

with
so

transportation

raDjdiv
or

become

many

improving

"weekend

a

in

"weekend in Europe"
an
active reality for

tourists. Many other

and travel areas,

resort

before restricted

\° tbe traveler with

a month or

tWO to Spend, Will SOOn be Open to
the

two-

and

three-week

vaca¬

exchange

Opportunity

takes

never

of

care

itself.

It

to be helped—and helped
uously. The, fact is that to

much

as

can

travel

marketing
date

it

as

national

grow

inter¬

grow,

first-class

needs

hard-hitting, up-to-

—

sales

has

stren¬

and

operational

tech¬

niques that take into account what
the buyer wants today—and

he's

going to want five

what

years

from

which

Many

nations

overseas

have

been

doing fine work along these
lines
during the last 10 years.
done

.

much.

as

Comparative statistics /show -that
government programs to stimulate
tourijsm
for

have

almost

themselves

always paid
times

many

Irf view of the

enormous

securing; a maximum
from the passing tourist
in my opinion, be com¬

on

tourist

expenditures

have

a

nation

could

against

profitably

present

in

order

of

their

increase

to

consider

accomplishments,
the

in

revenues

volume

this

vital

should,
pletely abolished.

One

:

,

final'< word

dollars

;

about

-

and

*

we'll

-

the

such

future

a

program

These

...

Rather

r

not

are

aid

in

the

be

to
we

S.

value.

aid

continues

necessity in certain

a

all

can

free

U.

open-

for

market—rvalue, given
direct

con¬

areas,

that this kind of

agree

functioning of economic

de¬

mand and

is

supply through tourism
superior form of dollar

far

a

stimulation for
It's

the

economic

nation

any

today.

healthy sign when the one
replace the other. The bene¬
fiting nations develop far greater
self

sufficiency

from

such

through

and

initiative
secured

revenue,

their

individual

efforts.

The revenue itself
and more

moves quicker
spontaneously into pro¬

ductive commercial channels.
For

those

eign

of

trade,

means

and

business

best

dollars

for

It

general

through capital
cal

industry

greater

goods

the

It

pur¬

means

overestimated.

in¬

prosperity

abroad.

demand

It

for

answers

Promotional

such

program

Companies

by

in

are a

any

is the development

and

recreation

industries

almost

invariably produce a high return
through resulting tourist revenues.
Today underdeveloped countries
can
realistically consider expen¬
ditures in this category as basic

and for foreign
returning travelers.

our

another
a

travel

way,

dol¬

of returning home

way

put

on

thei back

if budgets are
a

new

stove

tight. In these days

tourist hotel, may be as im¬

portant

as a

new

Elimination

tape

of the

in

of

customs,

steel mill.
border

crossing

'

Mobility of Ideas

There is another

mobility is
bility

in

area

a

and traditions of other nations.
In

this regard it is typical of
thoughtful, up-to-date prac¬

the
tices

the

of

Trade

the

a

I'm

of

old saying that

tions."
true

This has

than

"ideas seldom

never

today,

been

na¬

more

v

Ideas in this age move with the

evening

a

few

very

of

the

given

was

daily

intimate

an

lives and

the

other

dition

has

dous

over

to

best

business.

will

con¬

tremen¬

a

throughout

Our

the

Ameri¬

uniquely

high

of

living, as well as our
liberty, cause in¬
interest
today
in
many

traditions
tense

quarters

of

where

before

only

was

curiosity. Among some we
misconceptions
about
our
country—among others even some
antagonism.
But we never find

vague

find

lack

of

Since
made

interest.

1946,

'

There

signs

ple

everywhere

how

we

of

have

us

want

live, what

we

know

to

think, why

operations

are

successful and efficient. And
we

don't

the

travel

abroad,

From President

even

are

that

this

significant

more

problem

of

com¬

municating America's aims to
friends

business

and

is
it

our

colleagues

today receiving the at¬
deserves.

On

Sept.

Eisenhower

11,

called

,a

Americans, representing all phase^
of business, professional, artistic,
and
religious life, to develop a
program of intensified "people to
people" contacts with our friends

abroad, with a view to telling our
story more effectively wherever
misunderstandings
exist.
I
was

happy,to be invited to this

so

even
our

take part in the

to

which

implement
tives

in

session

organiza¬

is

being set up.vto
the President's objec¬

this

A similar

important are#. * ,<t:
new

organization,

.po¬

tentially capable of accomplishing
a
great
deal
in clarifying
America's economic principles
abroad is the Business Council for
International

Understanding,

com¬

posed specifically of businessmen
concerned

by the many miscon¬
ceptions existing abroad about our
country and its business values.).
And there

are

other such

many

groups.

These

devoting

organizations
a

all

are

lot of attention to the

opportunities
ual

most

business

business

know
to

Eisenhower

tion

about America and

standard

I

continue

Attention

and

part of our
lives of mil¬

stimulated

values.

can

the ques¬

to

explore
this very crucial subject.
Their
findings will always be worth our
close study.

the

effects, this

curiosity

world

entire

Conven¬

improve
knowledge and acceptance abroad
of the aims and policies of private

the

lions around the globe.

Among

Foreign

an

of

how

tion

In

communications media have

become

that

session

tion

years,

of sound—literally.
of

National

Council

meeting in the White House of 60

which

key fact of the pres¬
thinking of the mo¬
ideas. We've all heard

ent time.

if

we can

competitive founda¬
convey these things
meaningful. Way requires a
good deal of clear thinking in the
light of world conditions today,
avoiding pat
phrases
and
easy
generalities, while taking due ac¬
count of the particular problems
in

President

.

red

things

American I business

its free,
tions. But to

tention

our
.

unnecessary

any

V*\

and

abroad

trips abroad.
At
least
a
fair
percentage of our
capital
investments,
central
to time on these trips is spent an¬
their
future
economic
develop¬ swering
questions
about
our
ment,
rather than
as
marginal .country — straight questions and
non-priority projects, which can the "curved ball" kind too.
Peo¬
be

lot of eloquent

regarding

say

means

trade dollars.

as

mass

important to

give

to

not-up to what they

were

American

overseas,

goods

course

First and most

broader

a

can

investment in lo¬

speed

be

we

I'll confess, for one, that several
times
I! have
found
my,
own

Council

not

unsettled,

practically

on

questions we're asked.,.:-

American

respect the boundary lines of

so

answers

lot.

a

activity. With the
the value of
travel development programs dur¬
ing coming, years, as "economic

future

probably

base than before. We'll try to

in for¬

engaged
means

exports.

our

creased

us

this

more

chase of

shadow.-) ^

stability of
Europe and Free Asia, through
reduced supplies of oil and result¬
ing indirect effects on production

circumstances

talk

to

a

particular importance, keep¬
ing in mind that the present situa¬
ing

whole¬

should and could have been. There

;

dollars.

voluntarry

are

expenditures

While

they

)

...

they

sumer

has

tion in the Middle East is

present^

continue

—though
the

these

what

represent.

lars have

For

t

.

tourist

Put

area.

.

..

t

Under,

of

revenue

over.

effects

welcome

we

.

object

can

now.

•

.

deny that this

,

Travel

From

conditions, the direct
encouragement of foreign travel
presents a great opportunity. As
we all
know in business, a trend

-

extraordinary opportunity—^

an

one

;

will

rates

Importance of Tourist Dollars

national travel—assuming again a
of larger promotional companies
reasonable degree of world stabilabroad, designed to capture the
ity.
interest of potential tourists, These
^Beginning in 1959, we expect
are
best implemented by strong
that jet passenger planes will be
national and regional tourist or¬
used increasingly for long runs,
developed ; by
With these planes a traveler will ganizations,
the
governments, transportation in¬
be able to fly from Chicago to
terests and business groups of the
London in slightly over six hours,
countries concerned.
"
as opposed to thirteen
today. Such
speed could have large effects in
Second, increased foreign gov¬
ernment
and private
investment
encouraging world travel,
Meanwhile steamship, railroad in hotels, transportation, consumer
and

of -.special

future
worse,

or

considerable

very

us

connec¬

better

For
a

of

None
is

:

""

Under such

being.

close

a

country's

our

bear

we

tourists

'

Great

u

have startling effects on
the coming development of mter-

inauguration

with

well

our

American

as

,

relaxation.
••

circumstances,

actions

responsibility.

..

handle

to

knowledge, fun, and

*

such

and

.

a.wonder¬

,

can

would

of

source

is

on
oui
changing times that U. S. foreign first aid" to distressed or
'ravo' expenditures are well over undeveloped overseas nations can¬

Zmai^

I

These

further these figures represent
made in a
ve^ few years- » 15 an extra"

surpass

provided

countries

a tremendous advance

morning

~nr.ddre.s
New

start. The fumovement

tbese

,btals 'V*,.®'5" eTUIValenW° ab°bt
r2% of the revenue secured by
overseas nations from imports
coming into the United States,

completely lose its sanity.

mobility

National

a

for

level could

dictions

this

just

potential

every

travel

words

by coun¬ heartedly. At the same time,, it's
tries that cannot.realistically free a role that quite frankly we're
up
their
currencies
at
present hot altogether accustomed to tak?
often proves to be a very worth¬ jng. As businessmen, we have a*
while measure."' )
long tradition of preferring to. talk
practically
about- the practical
Finally,
"in-transit"
taxes,
problems we face from day ^ to
travel
taxes,
and
all .similar
,day.u.*
;
;
measures designed with the frank

„

f1, to

of

matters

These

sort.

same

mornings

unrelated

The

begins to think ol;travel.
•
One-third of our families, ;are
now
in the $5 thousand or.over
income group. These families are
discovering more and more that
•

off¬

encourage

be recruited and trained.

tourist

he

a

.

regulations in Australia
labor policies in Italy, and a

.

-things,

I

to do with

must

he

other

•

country's prosperity, I would
like to suggest a seven point de¬
velopment
program
which
any

financial
.

Among

which

import
restrictions
in
Pakistan
\
building codes in Dublin
,
.

wants.

to

Personnel

begins to

of what

and

business.

season

the

view

the

by.

businessmen have

living.

prosperity.
But today the economic potentla? °f international tourism cann.°t be taken so lightly. This year
alone we expect the U. S tourist
will spend about $1.2 billion in
foreign countries and well over a
<Warter °f a b'lbon more °" forel®n carnars- These expenditures
are tuen°uSb to pay for almost a
tenth of all the merchandise we

result,. I often find on my

a

desk problems having

broader

a

explain
work

tion

period of
spending
durable goods

improvements
prosperity

If

on

spotlight,

the

resorts,

that

we suddenly
stage, under a
being asked to
values we live and

ourselves

world

are

in

in¬

-

Under

seasonal

travelers

of travel.;

consumer

they

festi¬
and sport areas, appropriate
the country, can be developed
attract
special
categories of

to

automobiles, washing

like.

that

difficult

find

intense

cause

to

o n s u m e r

homes

;,

is

most

here

You could say

the

,

today.

Special

direct

day-by-day

in

might do well to
regulations in this

truth

the

passing,

we

vals

any

into

The

world

In

that

our own

among

has

said

States

area.

nomlc e«ects ol tourism on world

cor-

t relationships with

e n

all of the rest.

or

As

our

As

have

of

Others * haven't

theie exist
tnerc exist innuinnu

day-to-day.<:nJerabl®textbookson ,ee™"°
.example,; °*
,every conceivable form
my own company/has difrefife deal- :t^ international trade. I am.^ware<
ings
in
35
countries ' abroad oi n.ot ?"e( vo u,me ,on the ec?T

frequently during

the

and

has

the growth

outset

continues, the

ful

clothing and luggage manufacturing;

United
review

wider base

condition

international

Trade

and

sense,

forward. Remember that in 1926 a

ness

trade

the mobility

international tourism
has always had a close relation¬
ship - to
international
trade.
I
somewhat
question
whether
in
past years it has received the
general recognition it deserves. It
is a vast, diversified industry, in¬
volving many necessary functions
and many widely separate areas
of business activity; hotels; car¬
riers; travel agents; entertainment,

all

almost

who

*

4

Tourism

the

have

g

foreign

to

essence,

to

the

machines,

important

an

far

important.

be

bil¬

prosperity
a

it

an¬

an

$400

over

This

It goes into

words

these

n

have

reached

well

modernize

to

commodities.

that|oday

i

these

of

of

prosperity, c
goes largely
y

terest.

vitally

let

Gross National

our

now

producing

At

of the eloquent
Forty-Third Na-

this

rate

relation

to help

thinking

has

sustained

a

activities

is

consumer discretionary spend¬
ing during recent years—and such

fields in which development has
been particularly marked — the
tional Foreign Trade Convention mobility of people through tour—"Foreign Trade and Investment ism „■ and the mobility of ideas.
I'm

formalities and health restrictions

of

underdeveloped nations can consider expenditures on
tourist facilities as basic capital investment.
Offers 7-point

theme

nual

been

tains

program

Product

continues.

foreign countries, Mr. Reed main¬

some

he

lion, and despite some soft spots,
our
general level of prosperity

-.

President, American Express Company

to economic

which

enjoy in them.

Meanwhile,

Trade—Today and Tomorrow

time

spends getting to these areas,

now

Thursday, December 21y 1956

...

which

travelers

individ¬

our

have

to

discuss,
interpret and explain America's
principles to all types of citizens
abroad.

With all the tremendous powers
of the

mass

today,

it's

communications media
a

reassuring

the most effective

fact

means

of

that
com¬

municating our values and prin¬
ciples to others continues to be
through casual conversations be¬
tween

The

one

individual and another.

American

given

constant

tourist

abroad

opportunities

is

to

Number 5598.

Volume 184

be

him.

shows

he

If

it's up
genuinely

that-,

After

overcome.

to

a

*'

face

we

"new

sympathetic interest in the coun-.

v

Despite-

-

many

a

international
fact, rather

goal.

conclusion

In

let

me

say

quite

travel and trade appear to be just

"Wg must continue to strive for
reduction
of
government

heartbreaking

fearful, threats; the
cold fact is that the standard of

a

of-

become

Reynolds & Co to
Admit New Parlners

simply that today intercontinental

*

,

can

than

front:

mobility.

mobility

trade"

today

about the

the.

13

(2805)

,

will face tomorrow are

another,
language barrier can usually

he's visiting. One way or
the

" '

-

steadily "grbwing- ."climate
of
and a
^integrally mobility in international trade.
•' In
any ..event', we must be alert
tied
in
with this all-pervading
develop this *, climate
on** all
fact of increased and increasing to
which

trade

countries

talk with citizens of the

Chronicle

.The Commercial and Financial

.

best insurance

we

have

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

New

York
Stock
Exchange, on
he's-visiting, he will find an
regulations to the minimum con¬ against the intercontinental mis¬ January 3rd will admit Wyatt A.
* warm
interest
in
the
sile.\;
United States. By speaking simply living of the free world- is slowly sonant with good order. We must
Armfield,
William
A.
Devlin,
and truthfully about America and but steadily rising, as also is the do all we can to. stimulate general
Arthur W.-Geggie, Jr., Robert E.

and

setbacks

try

equally

New

-

what

stands

it

will

he

for,

worldwide demand for goods

be

_

*

In

general,

tourists

doing

been

services.

American

think

I

have

particularly

This

credit, for.

traveling abroad
The American
usually successful

is

in

and enterprise of
We must

Palmer

Midland Sees..Go. Formed

'

private business.
share in in¬

In Kansas City

do our full

!«

[

creasing

make

the

everywhere

and

partnership.

7

—

>

his

Roger

Vasselais

Armfield

Mr.

to

./will

in 'Win¬

headquarters

ston-Salem, N. C. and Mr. Geggie
in

Minneapolis.

-

-

<

ap¬

States companies

businessman

been showing con¬
exclud¬

sistent increases. Exports,

plies to representatives of United
professionally.

confidence in the judgment, vision

general welfare
KANSAS CITY, Mo. — Midland
not Only to build
Securities
Co., ' Inc., < has
been
long-range overseas markets and
ing military goods, are expected
formed with offices at 1016 Balsources of supplies for ourselves,
to reach $17 billion in 1956, while
: timore Avenue. Officers are M. J.
but
also
from strictly
humani¬
imports will total a volume of
? Coen,
president,,
and / M.
L.
tarian motives. We must continu¬
about $13 billion. Both of these
Thompson, secretary and treas¬
ally keep in mind the vast and
represent new records. Were it
urer.
Mr. Coen was formerly an
not for the clouded
situation in new challenges that our time
Prugh,/ Combest
&
'
; *
'I •"
*... ,J. officerof
the Middle
East we -could:, say provides.
It
is on
such terms that the Land, Inc.
with confidence that there exists

imports have

far

a

of
making
friends abroad than they're given
job

effective

more /

and

Partly as a result,< the
level of United States exports and

helping himself and his country. -

,

friendly and
relationships with his
opposite number abroad. Meeting
on
the familiar grounds of com¬
mercial operations, he can show
most .clearly
his ability to give
and
take,
to
respect the other
man's point of view, to work out
a- relationship
that benefits both
establishing very

personal

J.

A. Hogle & Co.

Adds

(Special to The Financial Chronicle)

LOS ANGELES,
B.

McCosker

with J. A.

is

Calif!
now

—

David

connected

Hogle & Co., 507 West

.

Sixth

Street.

parties. Such contacts do more
than. anything
to eliminate the
false notions of American business
throughout the free world.

.But

all

we

as

There

limits.

whose

groups

far greater

are

the

know,

of business travel abroad

ume

its

the minds of

still linger in

which
many

vital

in

numerical strength
and whose help is

building

uo

•

free -society;

a

values

/,//
is

.travel

Student

t

.

proper,

a

respect everywhere for the
of

vol¬
has

other

many

are

-r

;*

to

mind

my

of insurance-,

ohe of the. best forms

against future stagnation
These young people
the-future of our country. We<

have

we

mind.

ofjthe
are

want them to

travel

students

want

v.isit

The

us.

and we

more

other lands to
many efforts being
of

by private and government

made

to encourage student ex¬
change deserve -all the support
they can have.
>

groups

.

Meanwhile,

.

Ambassadors

Will

Good

is

attention

new

being given to. our regular tourists

potential ambassadors of good
Voluntary educational ses¬
sions
for /those
about to travel

as

will.

abroad

being organized today

are

in quite a few communities, using
the facilities of local educational

Reaction

centers.

has

these

?.to

enthusiastic

been

among

high

a

percentage of those planning

trips

abroad.

;v

-

.

the

At

•„*

;

^

same-

;

.

'several

time,

steamship companies have gone so
far!as to make short experimental

educational

other

and

language

available without charge

sessions

another gain

traveling on their
ships. They find that about, 60%.
to

passengers

take

of their American passengers

'

advantage of'one or more of 'thgse
short courses and are very pleased
with' the

results!-We

programs

like ' this

years.'V

.

need

more

'

•..

,

of oil

coming

in

Travel by

attention

While

deserves.

it

combination of Dresser-plus"/* teamwork and
experience serving the petroleum industry. Dresser
welcomes Guiberson to its all-star team of operating

ex¬

present the volume of
there is much effec¬
which can be done to

at

work

the

publicize

attractions

the

of

United States abroad to those who
can

travel. We can also make sure

joins DrAser

greater

f

*

such travel,
tive

—

Industries to form an even

change barriers in many countries
limit

Corpora--

production and drilling

equipment

'

foreigners to our own
country is,a subject which only
recently has begun to receive the
r

The Guiberson

tion—leading manufacturer

.

j

-

companies. Products made by The

iA*

•'

yijiA

A rri

'o

■
■

t

-I

area

Guiberson Corpo-.

widely used in every major oil producing
of the world for completion of new oil or gas

ration

are

wells and for the rework of

existing wells.

for Dresser

drill¬
swivels, blocks, hooks
and kellys. Important to the growing new field of lease ,
automation is their exclusive new controller and a line/

Guiberson

equipment for workover rigs includes

ing heads, blowouf preventers,

of
.

high and low pressure motor valves.
Dresser is

proud to add another outstanding com¬

its integrated industrial team providing the
oil, gas, chemical and electronic industries with
Dresser plus
equipment and services which have
become the standard of comparison the world over!
pany to

Tomorrow's Progress

Planned Today!

that these friends from abroad are

given
they

here. In a number of
communities, commit¬

have

tees

when

welcome

proper

a

get

American

been

set

with

up

the

specific purpose of giving foreign
visitors a personal reception and

picture cf

our

local*

institutions, family life
eral viewpoint.
*.■■

and

gen¬

accurate

an

Since

1919, drilling

and workover crews have

Guiberson equipment..Today, Guiber¬
son offers the greatest variety of swabs on the market
for all sizes of tubing, drill pipe and casing. The com¬

depended

pany

on

produces a complete line of permanent and
packers with anchors and accessories.

retrievable

aigi. r»"j s>

,

Oil
-

I

hope I've been able to convev

this

morning

reasons

appears,

why
to

one

movement

of the

"mobility"
important in
the tempo of our
as
it affects, the
people
and
the

the term
me

understanding
time-mobility
movement

two

or

of
of

so

ideas.

.

.

.

.

Meanwhile, it would also appear
the patterns of international

that




EQUIPMENT AND

Dresser-Ideco Company —
steel structures • Dresser Manufacturing Division —couplings
The Guiberson Corporation — oil-tools • Ideco
drilling pigs
Lane-Wells Company — technical oilfield services .*. Magnet
Cove Barium Corporation —drilling mud * -Pacific Pumps,
Clark Bros. Co.—compressors

Incorporated
—

blowers

•

•

pumps • Roots-Connersville Blower Division
Security Engineering Division—drilling bits

IECHNICAI SERVICES

•

GAS

CHEMICAl

ELECTRONIC
INDUSTRIAL

—

Southwestern Industrial

Electronics—electronic instrumentation

REPUBLIC

NATIONAL

BANK

BUILDING

•

P. 0. BOX 718

•

DALLAS 21. TEXAS

u.V/J

tjf'i *;W

14

(2806)

;

Federal Reserve Failures
In
;

Pursuing Tight Money

Chairman, Subcommittee

]V V

Economic

on

|".
I

V

| 1

need for thorough reexamination of monetary

v

The Subcommittee

another

has
its

of

Economic

on

just

reviews

periodic

designed to check

the adequacy

on

anH
and

pffr>rtivpeffective-

of

ness

an

important

monetary

and

credit
trols.

"

to

.

ing

of

these

hearings
stated

they

I

in

no

t-.on.

Wright Patman

way

to

under-

the Federal

en

Reserve System
constituted. Our
to

was

gather

recent

and

credit

policy

various

It

objective

current

its

effects

our

after

these

report

of

the

Joint

I'Ornic Committee due

However,

in

precedented
has
•

been

view

public

manifested

-i—

i

in

the

jmopriate
which

to

issue

this

incorporates

the

and

administered

,.

.

-

,

policies

nave

we

no

scarce

excessively high
rates, in some'cases

Moreover,

As

nancial

and

the

issues

because

of

the

lack

"school

pone

"investment,

must-resort

«';u
witT
will

facilities

too

sources

as,

racetracks

the

say,

; k" "
It is evident that, assuming .we
to continue"to
fightVinfla-

want

tionary forces with
of

restraint

on

some

credit,

measure

we-mnusfc

'

these hearings

is

that

not

tU^unrfUT'rkk^he •lhe

known

,

has

ade

111

by

an

i ni porta nC con-

indicating

some

of

agreement
with
Mr.
Bell
as
to
areas
that need study. As to
the vehicle for that
study. I differ
with
Hell
cw.ee
i.
with Mr
Mr. Bell
Suffice it to sav
ium

that

are

where

area

I

differing with

believe

theory that by restraining generallv
SUODlv
o(
cr(fdit and
ally the
the
supply
of
credit
and

this

is

combine

Mr.

Bell's

nine by

having a
Monetary Committee asby
outstanding qualified

sional

sisted

experts
and

My

life
lif^

field

of

impression gained
hearings is that there

an

exaggerated
attributed to the

Reserve

im.por-

monetary

credit

powers

of

the

us

Federal

growth!

stability andI
.

Chairman
rnportant

Martin

has

contribution

made
to

an

the
the Pr'^ mcieases
lliC
increases

'u'r/111

?hat

,twpen

b^en f f^tesX occurred tive

consumption

capacity

? m^tals and metal products, con- We do not
materiaIs' a"d machin-.dngs at
'

.

/

These

are the so-called "adminThat is to

price decisions are not reto short-run interaction

suPPly and/demand in

Instead they

the

fixed

are
Xbe

mar-

tio-n

as

problems,
19S6

*




Washing-

and profits

worjcs

d

a n

funds—a comparatively new
type
of financial
institution,

enjoying'

;

tax

regulation, either Federal

most

Elliott

rnuld

,Vstpm

...

V.

Bell

addition

there

has'been

.

hp

.

growth of
strumentalities such

Such .an inquii y need not imply

TndJctm^tiprour^xKting

^rp^tfnn

Small

sys-

In

'

the

past,
of

provement
has

reform

our

and

which

the

Bank

Act

im-

of

are

paper

-The

money.
Apt

QP1.VP

nf

ties,

was

an

tively

of

change; but if

P°se

in

monetary
these

them

lending

is

ac-'

or

in-'

policy.

government

nun...cian,--,-w^ic
intermediaries-were estab-lished by Congress to carry out a-

social-purpose

—

such

rural

as

electrification — others are moreakin to private financial institu-:

tions.
there

..

we run away

of

score

of

The

•

,

and[

1913

credit

Corporation, followed by
.

or;

i-icui.

the Banking Holiday of 1933.
.

a

engaged

Some

Re-

affpr

math of the Panic of 1907 and the

_.

lending

in

created, between

About

banking Teforms
of .the
early
,1930<Si. including th'c ' establishment of the Federal Deoosit Insurance

Administration^

Administration,^

engaged

1955.

1863

Federal

1013

as

guaranteeing or insuring loans.
report of the Hoover Commission lists 104 such instrumental*-

critical events. Thus,

National

in¬

in

generally been delayed until

??rcefl

an

federal

A

system

money

Business

and the-Veterans

le®ls a~

"

unrestricted

supply

lhe supply of credit
r»fp
rate

%A7i 11
win

1920's.
sav-

and

He-

changes

and

the

imnrwfnn+l,,

impoitantJy

dl^bVTi^dm&T'coA^ll.

question
is

need

arises

•

for

all

there^ is. need Ror

whether;

these

agen-

agen

-°P( canons are always in narmony
with broad national policies.
•

since

the

last

National
j

:-e!e„;'
.
.

/-.
n

than

more

tUe

au

40

years

Monetary
•

u

n

—

are

concerned

now

dangers of inflation.

interval

h^.
^ P-red

tives^

-

and

esneciailv

in

^ars there have
roolutionaV^
w
u^nary cnanges

*

Here

Sonnenfeldt Opens 'I V

~

securities business, from

offices at 217 West 23fst
New

now
of

City

H.

in'Company.
formerly

af

^.,^,*+5^

cunties

an

o

under

-

•

is

a

of

summary

these

the

Walter

New

(1)

.

Financing Sources

The

past

20

years

brought the development of

Coip.

t

•

Bank

Board

and'

upon^the

personalities

have

Fed-

of*

^ individuals. in charge at
°ne period of time,
>
xt was sa'd that the-banking
troubles of the 1930's were due4'

partly to

a "competition in laxity"'
the
various
supervisoryin the

booming 1920's..

eurrence of such
the present boom.

competition

re->

in

This

a

third

tenSna

svstem

hav

the
t

multiplicity of regulatory;
chartering authorities raises

question of the need for

uniform

standards

ments to govern

♦Testimony

Subcommittee
of

r

Fed-:

jurisdictions overlapand the coordination of policies,
Allowed is dependent almost en-;

and

tute

Mr

'

Comp-;
Currency,' the 48-

There is nothing to prevent a

Sonnenfeldt

Sonnenfeldt was
officer of Family Se-

include,

the

Home. Loan

"among

Street,

the-.firm

■

the

-

York

*

eral Reserve System, the Federal:
Deposit Insurance Corporation,

authorities

H. Walter Sonnenfeldt is
engag-

»

These

M

-

others. Their
j

changes:

in-

af-

now

.

.

Airpiipioc

outstanding

zens

a nvide-

-

Multiplicity of Regulatory

troller

®u
9
It?

i0,

the

Joint

1956.:

by
on

Mr.

B-il

Kof—-

tile

Economic. Stab ligation

Economic
.

Committee,
-

.

-

>

stri!rnentahtles suc,h as the 'Fedthe Fed-'
eral Housing Administration, the

imnrnvpd

,

^em but it would almost certainly
^

engage

-

enormous

„

•

In

•,

0 y r.

mfinPV

any

state./

important
sources*" of
lendable funds in the future. 4

function-

g

n

or

now;

operations ancL
become one of
ther

promise": to

whether

e

pension funds

in major financial

for

j

exemption and free -from

These

needs

^ ^

the

on

®

that prices

terest
teresi

produc

late

want to stimulate

we

Prp^a^Ie pi" about the

'

'

and
net-

We must at all times be equally
svstem and eauallvl revolutionarv
vigilant to the dangers of deflfi- 1
.changes in our economic obiec-

name,of
lonetary and credit
tun, D. C., Dec
c
17

and

spective investor.

more

attraction of new firms into the
industry. Since in the administered price industries an important consideration is to limit the

to

the

power which is the most potent
mecntnre ever^presented to a pro-

sP°nsive

fects of prices

in

spread distribution of purchasing

,

istered price" sectors.
say

Pureh'asing

the; expense of

« other factors which

3

l"come and

faTf i". ^ sa™?'1nev*n way
J 3
6 widening gap be.tweeiv consumntion and- nrndnc-

public

on

of. nrin-

navment

com¬

banks;
the • growth
of',
large finance companies providing consumer
credit, and of pension

or

thatUraan number'of'producers "it Ts'likelv ing in

instruments

as

guarantee

^nt out that
P01nt o,,^^1

banking

second

ij
insurance

dlstnbu.te

finance.

these
been

tance
snd

the

public

from

has

in

ing and competing with the

some

an

proposal with
Joint Congres-

the

*

mercial

"i„,i
try to
cipal on^home mo7t'^geVetcrTSe <trom
??y tbe svipply of credit and cit^l ™from ®r try,,° shut our eyes to
our eyes
thereby denying credit. to.
really
^5L.d??y.f« .???«■*,.
really-big -savers are those with
«a
caH1}a!_"s.er,s!.it,_is Rre" very large incomes. The effect of |h„ati^.se Pf°bl®"s
S°™.e.±f

the

Congress has an
inescapable Constitutional responfibility. I believe we might well

a

of

The man of moderate means does most
Xt ^ normal for .conserv^ive,
the ofahis°f model'ate means does most
the of his savings through purchase of economists and financiers

the

that my reasons for

that

sav-'

associations;

the
entry of life insurance companies
large-scale lending, parallel¬

course

by

state-chartered

-

loan

into

suffi-

is

of

and

'

impression gainedf-fr

to

V*1
natVrallv7j^ari9gs .is ^hat nQ:t^UI!1"
cient attention
being given

sentire

tribution

for

present

for1

demand

»

Bel I

ings

entire

ur

nightclubs.

or

naturally

^oY-ii £al"ec* fr°m these hearings.
^a™i".a»"0n„°L0ULe"i?.ne; ^edm'al Reserve operates on
tary system and particulariv' a federal Reserve "operates^on
Particularly

portance

re_ex_

adequate

re-

a

role_and_goals
ofe™one'tani°poliU0*Mrn^uiott

*

not

.

a

brought the rise and growing im-

money

.

long,

a"th.or"ies on. the
harmful effects of higher interest
•
hi 'dmssTsTn iffeel t5;.' ra,?s 00 Inc?me distribution. -The
First, the two days of hearings :
jnc denied the rieht to 4icram"?.aIn tC°neern seems to be with
served
to
make
me
feel' even-^e"
8
s<*am- Simulating savings bys offerin
more
strongly than before that the
tMs leads to
third imnressinn
interest rates as an inducetime is nast due for
thnm.iaH
leaas io a tnna impression mg"?r It is well
ment.

•}4^,e.t°1
5,l8 fll™s

c

financial

especially in the light of the challenge that the Soviet Union is

has operated unChairman Martin

lenders

j

a s

monetary

of in-

status.

other

need

.G

vesfors. We cannot afford to post-

mone-

within the area of
equipment
spending

rationing
rationing, ""theV
they

our

There

amination

con-.

Federal Home Loan Banks. It has r

enough: to buy., a school thaUcould
q- e r m f n e * "
house an additional 900 pupils. In
Aether -1 h e
too
many
instances school/ dis-present : ihstitricts have had to postpond, bond
tutions
a"r e '

pointed out, an important advantage big firms have is their "fi&

iudeeto'be

o

js

pay

interest

1933°

^

primarily influenced by social needs and priorities. The re-i
suit is that many school districts,

personally in the allocation of

iaary impressions.

.

of

is not

have had to

widequestioning

system than at any time since the
baniking crisis
"

The

resources.

'j

■

lesser evil than quantitative.

a

more

and

.concern

about the working of

exist, education as a social need cannot be treated as im-;

prelim-

Agrees and Disagrees With
Elliott Bell
•

spread

the

in

are

There exists today

-

o*

pertain _socia n 3ds.
housing,
highways,
by-passed

trols

-

P

\yay

'

an

more

against small business and schools, and states selective

prices.

imnressi
impression created by ■
these hearings is that under exist-,

restraint

statement

of-credit
charaterized by

A fourth
A fourth

mg

such

directly into the Council, guiding the Adminis¬
policies," without it losing any inde¬
pendence. Relates tight credit to tax-deductible interest
cGsts; •"
notes tight
monfey's effect upon record business borrowing, as

effects

is the goose that lays the golden

evenly.

concern

some

between

-

areas

in

for

need

tration in its economic

,

the

restraint

eggs."

credit

x,

wo-days hearing and the

is

Reserve

.

_

tary authorities do not appreciates

sufficiently

making to our technological leadership. And even if this challenge

and

brief

confronts

industry is
> *

good example.

the

In denying accusations of advocating lessened
Fed-,
eraJ Reserve independence, Mr. Bell avers he has
been "mis¬
interpreted"; that he had fought for the Reserve's independence; and that it is-"a matter of common sense to
bring the *

sharp;corn-^

that

monetary system, and summarizes structural changes in,
monetary, system to substantiate

inquiry.

price-}

on

.

our

machinery we rely on for "rationing" a curtailed supply of credit

pres-

Reserve

equipment expendiby the Secretary

plant

that

situation

scramble for

stated

un-

interest

the

of

etc., do not get

ap-

For the expansion,

1.

the

because

>

our

by sensitivity

did

Eco-

March
of

authorities

was

,

of

likely to be passed

•

.

Publisher of "Business Week"

solutions later on, editor and
publisher Bell recommends carry- :
ing out Allan Sproul's suggestion for a broad re-examination of

'

.

policy. As he put it,

hearings' but

ather to study the record and to
eonsider it in connection with the

inflationary

coordination

plant and

ture

^

of the T^fcasury to be the primary
objective^ of Administration tax

recommenda-

or

l

annual

of

on

economy,

was

the

tary authority.

monetary and

and

report

fiscal

to

as

of

forces

assuring that
for
schools,

-

lack

rather

not originally intended to

a

tion

is presently

information

segments of

was

issue

it

as

demand
'

;>

each seller. The textile

capital goods-area,
particularly from the plant,
and
equipment expenditures
boom» This points up
a
serious

mineorthreat-

market

It would appear that the mone-

that the Federal

from

come

and

of

characterized

petitive

greatest threat to instability have

intend-

ed

current

from

market

less

attempting to restrain-through its
restrictive
monetary policy and
higher interest rates and-the

that

were

the

sures

preventing
being pushed4 iff* by

pressure

"wise

unanimity throughout the
hearings that the main stimulus

At the open-

Editor and

Believing that now is the time to face up to troublesome ques¬
tions, to prevent finding ourselves confronted with immoderate

in

supply and demand, rising interest rates-are >"

parent

con-

does

supply forces.

a

In this connection there

general

credit

Conversely it is true that in the

Finds Lack of Coordination

—

of

By ELLIOTT V. BELL*

-

.

\

to

stabilization
instrument

About Our

in

raising prices than the restrk-

areas

enlightenment in once again warning that monetary policy is "only
one
factor" and that "it isr not
adequate to do an effective job if
Ihe huHeetarv and the fiscal nolthe budgetary and the fiscal pol
icy of the Government runs completely counter to it."

concluded

rises

*

a more

the

and

system,

sectors

and

monetary policy's role and goals.

Stabilization

price

r

vested

n

important- role

prices

and monetary authors do not coordinate; and""(3)-income
inequality is being increased,'and schools and small businesses
are
being by-passed. Statement declares hearings substantiate

v

i

going rate of "inter¬

Therefore with respect to ad--'

tion

(2) fiscal

Thursday,-December 27, 1556

....

V'A

^

in

than restrict credit to prevent price rises;

rather

the

at

credit, play

Joint Economic Committee

Chronicle

account'

interest rates, due to restriction of

Stabilization

as result of recent money and credit hearings, are:
(1) metal, construction and machinery industries are "administered price" sectors capable of defeating Federal Reserve
policy wherein interest rate increases go into higher prices

\

into

takes

capitalization of

ministered

Patman,

>

the

funds

Amongst the impressions gained fiy Subcommittee Chairman

J

that

return

est.

By IION. WRIGHT P ATM AN*

The Commercial and Financial

-,

feet. Thus the, price will unques¬
tionably be fixed to reflect a rate
of

4

I

-

.

L
0f

new>

and

more

require--

the establishment

financial

institutions

in-;

....

finding branches of existing instiDec.-s "Jrcinc-iica ui cau.iuiS
tutions. Every commercial
bank

Volume 154 ..Number 55,98..-. The Commercial and FinancialChronidlt

in
w-»

the

is

country

/-\

a

nn-#>»4-

rt

system

mtv

monetary

and

part of our if he felt the danger at any point
its lending-of political contamination,
I

AV»

/i

J

/A

£

»-i

ma.

1

—

.

4.

_

-

'ii

w

_

tory fiscal

Inequitable

supply of-money. Yet, the stand¬
character, and
governing
the

(4)

For

been

Holding

according
New

complication has
by
the
Bank

Gove]

to

York

Harriman

lor

the

and

Banking
that
Superintendent
of
State,
George. Mooney provide a means
of bypassing the State authority
with respect to branch banking
and the concentration of banking
power.

Banks.

serve

task

Goals

expected

now

composition

concerning

the

Federal

have

Re¬

been

of

of

Board

the

the

Federal

term

members

Re-

of' office

and

'

ex-

1*

__

variable depreciation,

as

compensation received by-them.
During the first 20 years of the

exlste*ce

Fed^ral

the

of

out

a

the

capital expansion boom like

present,

thus

far

does

affected. I
is
so

which
not

tight

money

to

seem

employed
there is

in

means

Netherlands

the
of

learning how

useful it has been in actual prac¬

tice.

Vv

Reserve

was
relatively unimportant and
relatively impotent. The Federal

Banks,

especially

Reserve

O

—

—

large outstanding

a
J

A

-

_

past

L i.

it

has

to

present
and

large

apparent in rethat rising interest

serious obstacle
profitable corpora-

no

tions. since interest paid is a taxdeductible

4%

of

8

of

or

the

than

2%. Even

9%'would

corporation

after

cost

a

rate

the large

taxes less than

municipalities are now paying for
to build schools.
•/ On the other hand, the corporation that is in trouble, operating

J. (7)'.Other questions that need

upon in the red

quantitative credit control of high

has

It

been

noted

in

the

existence

i

_

.

An

,

•

«

1

in

the

condition

statements

Continued

the

on

page

New

reforms

following the
of
1933,
this
abruptly reversed,

Banking

Holiday

situation

was

established, its primary pur-: power was shifted to the Board in
was
to
provide an elastic Washington and taken away from
currency
geared to
commercial the regional banks.-And yet the
paper. Today, we are committed President of the Federal
Reserye
to a national program which calls
Bank of New York, is paid about
was

pose

for Government action to promote

three times

high-level

man

employment

and

to

maintain
economic
stability.
In
carrying
out. these
objectives,
monetary policy has a large role
to play.
Is the Federal Reserve

the

is

much

as

the Chair¬

as

of the Board of Governors ol

Federal Reserve
anomalous

an

Board

be

to

is

System. Tiiii

situation.

dominant1,

If

the

tne ques¬

tion is relevant whether the

com¬

System adequate to play

its part;
responsibilities in -this
connection ever been clearly de¬

pensation paid to members of tnt

have

Board should

fined

its

either

that

so

the

of

Federal

else

anyone

it

members

persuade

or

tinguisned himself

what

its

know

actually

make

to

be

Board

the

Reserve

can

obligations

ficient

not

who

man

suf¬

possible

to
dis-

has

president ol

as

regional bank to go on to Wash¬
ington as a member of the Board.

a

Whajt

are?

a

least

at

should be the relation between the

At

Federal

sible.

other

Reserve

which extend

regulate

or

and

with

various

the

and

Governmental

agencies

Study

guarantee credit

or

financial

the

institutions,

Treasury? Is there
arrangements to
provide for consultation and col¬
laboration

these

among

Board

various

dent

the

recently

desirability of

to

suggest

in

cies

respect to economic

somewhat

Security
respect

the

as

Council

policies.

he

|See

defense

to

other

National

with

"Chronicle" of Nov.

In

the

the

upon

Federal

cannot

Reserve

that

it

see

of

by

'time

to

the

be

ket

;

ties

world

open mar¬

responsibilities

-

securL

Government
All

these

controversies

and

questions

need

be

to

ex-

amined.
Selective

"5

Controls

as

a

Just

Evil

Lesser

<

peace-

(5)
trols

two

the

market.

financing

done

was

There

disagreement

System over

System's

towards

the

as

requirements.
serious

and
level

inconsistency with respect to
'

powers' to facilitate the Treasury's
needs

Chair¬

or

operations. There is confusion

'the

its" credit-making

use

is

system

the System

between

been

and

Federal- Reserve

compelled in

the

Governor

a

Reserve

,

that

not

akin

more

central bank organi¬

which

within the

-

means

than

entire

assisted by various deputies.
have been differences of

has

the'President

"must

the

its member banks about the

created

by the simple
in inviting
the
appropriate
individuals " to
participate. In either case, I canmot
see
why the
essential
in¬
dependence of the Federal Re¬
serve should be endangered. That
independence, as I see It; simply

over

There

of

Congressional action, as was
the National Security Councillor
of

whether

Board

whether

has;

opinion

I

The sug¬

by

it could be

snoulo

authority

more

members of the

headed

gested Council could be established

act

the

of

Board

President; whether he

have

now

man

System.

way.

the

pleasure of the Presi¬

in

as¬

independence

-

appoints him;

to European

-

sault

of

zations

has been misinterpreted as an

to

fouiueen-

a

members

replaced by something

1, 1956.—Ed.]

quarters this suggestion

some

given

Board setup should be altered and

Pleads Misinterpretation
-

be

Governors; whether the

who

should

poli¬

functions

for

that of the

nomic Council which would func¬

tion

also

impos¬

his term should co-terminous with

National Eco¬

a

almost

continue

at the

serve

agencies?
ventured

of

Chairman

'

I

should
to

term

year

new

is

question of whether it is de¬

sirable

the

for

-need

this

present

in

There

role
as

need

to

selective

of

policy.

credit

No

would, it

seems

can

me,

Federal Reserve
the

to

Councils

ministration

1

I <
do, not have

-either

of

low

so

Martin

Eisenhower

it

be

would

former

to

contact

the

'

sensi¬

so

the

Presi¬

over-all
j-

Board.

might
server

National

by the Federal

In

be

this

invited

with

standing

Economic

regular

that

the

he

event,
to

repre¬

Reserve

the.,Fed

send

express,

could

.

an

ob¬

under¬

sit

near

an
open door readv to fly lo the
sanctuary of Constitution Avenue




putting

tight

a

money

days of high employment and general economic good health,
to a

momentary
.

small loan

family budget is not

much

so

to

keep things going.

The Beneficial Finance

When
ex^

•«

more

a

complete breakdown

|

"

there

controls

will

to be great

stabilize

the

j

>

System makes such loans available. Beneficial has

loan offices in number and

spread

over a

wider territory than

any

similar
/

organization. Djuring 1956 Beneficial made loans amounting to nearly
Three Quarters of

a

Billion Dollars.

stranglehold

through

an

policy,

...

a

BENEFICIAL loan is for a beneficial

purpose.'

bureaucratic interference
with free enterprise in the use of

.to

as

stalling. When this happens perhaps all that is needed is a

credit
be

tit

of

selective

a

seems to

.

I appreciate that there are dan-?

formed

without

example,

the entire economy

gers

sentation

quantitative

For

rather than

dent would corrupt it, then I sug¬
gest
there
might
usefully
be
Council

these

tbe; threat

evil

the terms of installment credit

up

on

with

lesser

.a

panding too fast, it might be better to have a regulation tightening

latter

the

; Federal Reserve Board is
that

for-

be

installment credit

mf'

of

think

independence,
felt that the

with

counsel

losing his
however, it i§

or

to

as

impossible

without

tive

opinion''Restriction

an

Tv/Tor-ik,

Governor

President

jlf,

to

thdht? over-all

cies.
„

In

the

mignt 'prove

•>j'

o;

oil

matter

a

bring

economic ooli- *
poli

its

in

be

to

keep things going

likes

one

example, of; this is the selective
control of security credit through
more-directly in- ? margin, requirements. There are
guiding the Ad-'v times when
selective controls

to

common- sense

d
tr

?

con¬

But5'apart from Treasury-Fed-: selective .controls. Yet, they can
W'Re serve relationships, it b^made to work..; An .outstanding
of

little help

a

explore

instrument of national

an

monetary

wars.

is

money

(6)

I

our

believe

prove

dangers in the

violent

seen

but

ultimately

economy

alternations

and cheap money we nSv.e

There

is' need

alsp

Beneficial

through

Building, Wilmington, Del.

Co-.

„

of\dear

in recent years.

plore "the possibility of

uiance.

also

apempt

to ex¬

compensa-

MORE THAN

1000

OFFICES IN THE

«

.

the

of

ct
>

explanation of this appeal !

is directly penalized

also

_

large Government debt, const i-

Although the Federal Reserve
has been following a stringer!
credit policy for well over a year,
and has prevented virtually art/
expansion of the money supply,
bank loans have expanded to reoord levels.
:

a prime rate
corporate bor-

expense,

costs
less

rower

f**

ir>

tuting a major part of the assebi
of the country's financial institutions results in a pronounced
laS hi the effectiveness of a tight
money policy,

become

months

cent
rates

a

that

year

1

Government debt.

dominant,

were

lm~the

Bank;

of

taxes and

money

Record Bank Loan Expansion

Sy^emTthe"Board'Tn 'Washington study-include the effects
.

have

understand this device

the .rate

.

of

mone-

tary and fiscal policy in this country. When,the Federal Reserve

the

There

-

Board,

serve

Federal

of

-

there has

differences of viewpoint as to. the

5(3) There is need to reexamine; York,
the

Other

years,

Board and

Reserve

Changing

such for

.1

as

contributing to economic stability.
This might conceivably be a means of spreading

relations between the Federal Re¬

° ra p a n y
legislation
rhich would,
this year,
u
"

enacted

of

new

a

introduced

some

controversy

serve

Lately

and

Pay

Questions

_

chartering and branching of such
institutions vary enormously.

been

policies,

_

ample

instruments

ards of competence,

necessity

1

«._•

and investing activities bffect the

public

(2807)'

UNITED STATES, CANADA, HAWAII AND

ALASKA

of

29

16

The Commercial and Financial Chronicle

(2800)

of wonder

drugs, its Lederle now
accounting

THE MARKET... AND YOU
By WALLACE

better

sales.

STREETE

buoyant

held
on

of

reasonably
overall basis,

an

Bruns¬

was

bit

a

tardy in enter¬

of

Investment firm

.

"To

"...
will

hobby of the
hunting out lists

was

issues

•

perhaps

turn

to

heaviness
in

the

the

motors,

metals

was

of

rails,

a

and

four

scant

nonferrous

decided

establishment

old

of

years

the

into

act,

the rule

a

"regular s"

lists,

onc such

greater degree than ever before, the free world
in 1957 for material and technical aid and,

;

j
j

Co.

„,

-

' ;

.

"If these commitments are to be met

sue-

-

confident they will be," he '
said, "this country must increase its productive ;
cessfully,

I

as

capacity,

am

"The securities

."should

enjoy

possibly

of

resist the forces
industrial peace."
.

preserve

a

and

;

'

industry," Mr. Bache said,
year
in 1957—'

prosperous

a

better

inflation,

one

tuan in 1956.

;

prediction," he ex- ;
plained, "is that I see increasing signs that the *
educational
program
of -the financial com¬
munity. is beginning to bear fruit! More and
more people are coming to the realization that ,*
"My

thdre is

ship of

Bachc

naroiU' l.

reason

better investment than the

no

a

this

for

owner- <'

share of American-industry."

'

.

;

.

Expressing confidence in America's ability *
to meet the

must be solved

to get largely because they show t
considerable yields well above the money;/

*

Bache, senior partner of the investment firm of Bache
&

most severely de-

century-

recent
some

pre¬

America

.

months

year-end commentary and

perhaps most important of all, for moral guidance," according to
Harold L.

continuing to lead ing the bowling alley pin- pressed by the year-end tax ■" on
strength this week. But setter business but has made selling, several such offerings '•
with a short week for
trading, rapid strides and original in¬ rujming two-score, to- half a J
the market was
unusually stallations for next >y e a r hundred issues With, a good [
filled with cross-currents as promise a good earnings prop. bit „ol
repetition in -. them, the inevitable
cleaning up for In fact, the company projec¬ obviously.. / •
t:hr\
the
year-end reached peak tions are that it should be
Among the usual repeaters '•
able to add a couple of dollars on such types of lists were f
proportions.
next year to earnings'of Alco
Products; Allied Stores; |
Strength Selective
around $5.50 this ^ear.
Bridgeport Brass; Crane Co.; j
Strength was -rather selec¬
Brunswick was also a bit Sperry Rand; 01in Mathieson j
tive, particularly in the pe¬
tardy in the diversification Chemical, and Radio Corp. J
troleum section, and the
per¬ race but since the
Even some of the rails were

sistent

offers

head

dictions for 1957.

popular

week

the steels

of

•

"Tax-Sold" Bargains

recommendations.

wick

fourth

a

'

A

Stocks

than

Thursday, December 27, 1956

Harold L. Bache Looks at 1957

.

Laboratories
for

...

ago

"In

in the coming

many

perplexing problems which ;

12 months, Mr. Bache said:'

opinion, the tremendous popular vote

my

.

f

.

registered by ;

President Eisenhower last November reflected the desire of Ameri¬

generally,
market
level
and
on
that 1
cans
of all classes for peace with honor.
They expressed their
progress has been made. Cur¬
respite.
rently the company, which basis, at least, could be classi-j deep-seated conviction that our President, who has known at first
Guarded optimism was still
hand the horrors of war, is better equipped than anyone else to *
for half of its corporate life fied as bargains. Gulf, Mobile!
preserve the peace."
preponderant.
The list al¬
concentrated mainly in bil¬ & Ohio was one such, its re-;
ready had one almost exces¬ liard
lines, is a factor
in cent price representing a re-,
sive rebound from the
byterian Hospital since 1942, and
heavy school furniture and
equip¬ turn in excess of 8%. South-; Davis to Retire As
is
Chairman
of
the
Chaplain's
load of tax
selling that fea¬ ment and in defense
Committee and a member of the
products, ern Pacific was another'
tured the stalemated market
ndrWYlctll
including plastic domes as frequently 'spotted, again! Harriman IHDICY rn#5« Finance Committee. He has been
this year. This served
mostly well as other
components for probably in large measure
to bring on SQme additional
Because of poor health, Pierpont
planes. The stock itself has Cause of its 6 /2 ,< yield.
j V. Davis will retire Dec. 31, 1956 formerly Chairman of the Finance
pressure
in the nature of
Both
the
electronic-video. as President of Harriman Ripley Committee. He is a Vestryman of
had a mundane market life
profit taking but the list held
and even
lately has shown fields and the motion picture & Co., Incorporated; 63 Wall St., Trinity Church in New York City
and Chairman of the Investment
reasonably close to its recov¬ little life
against anticipated- industry were represented on! city™ afte°/-.a
'
*nH rhairm*n nf thP WsWnt
Committee. HeT?'Vice-Chairman
ery peak nevertheless.
•!
such
"bargain" '.lists ~when,' distinguished
financing that will have to
of the Episcopal Church Founda1
If the reinvestment demand
be done. There has been little like in Admiral, Paramount; career of over
tion, and a director of the; PhiL
that this should inspire .makes
T e a f'£ ^
harmonic-Symphony
Society
of
discounting, consequently, of Pictures and Twentieth CenA
its appearance any time
( the investment
•
New York*, and a trustee of the
now, the
good boosts in sales and tury-Fox,-.the. return offered. banking busj_ ;
the year-end rally could have
Bach Choir of Bethlehem, Pa.
;
earnings / due this year as was running*7'^ or: better.. ; { n e s §, fii-; has •
one
more
Mr. Davis was President of The
.good fillip before well as next.
r b, e e n ;a n^
Bond Club of New York in 1929r
the list settled back to more
An Atomic Strong Spot
«:
j nounced.. He
About the heaviest weight
30,V and was; ; for -several ^ years
basic V considerations.
The
American Potash is an is4 h, a f ^
Chairman of the, Railroad Securi¬
^
affecting individual i s s u e s
great. stress
ties
being put ; bysue usually
Comrpittee of the Investment
broadly^classified; plary. Pves£"S
technicians oh the ability of lately, apart from downright with
Bankers 'Association.
He, is now
; the •'chemicals
but
l
jij. dent, and. co-' •
dour, specific* news, is the
Chairman of : the ; Railroad
Ad¬
the industrial; average
some
finally
ways -the company is an; tin u e si a s !'
obvious need in many cases
visory Committee of the National
to negotiate the 500 level
ap¬
odd member of the group! Its' director of the
Assbciatibri'of Securities Dealers.
'
for new financing to pay for
pears to have generated con¬
Mr.
Ripley, -! Chairman of the
heavy participation in boron; ^withJoseoh'- P—°?t V* Davi£
siderable
caution
even
in expansions already under¬ and lithium
products make it; P Ripley, Chairman of the com- ^
as;its chief
reinvestment circles. The way. The spectre of dilution
of earnings appears to be ex¬ something of an atomic item* pany, and the late Horace C. Sylability of the average to
since
these have important; vester, Mr. Davis took an active
punch through decisively ob¬ tremely unpopular and rides uses in aiomic enbrev and partin the organization of Harriin
atomic
.energysana| man Riplev & Co
which was
viously would spur the year- roughshod over the fact that
guided_ missiles.
These .and; formed in 1934 under the name.of
increased
ForC. F. Childs Co.
earnings are in¬
end rally that much more.
its heavy line of potash prod- Brown Harriman & Co., IncorRails continue 'to be the evitable sooner or later be¬
ucts helped it boost
earnings porated;, th^ name of the conr-?>
?°rp/raF
cause
of the;-expansions.; m -1
rYtn^rntni,,
tUo
pany was changed Jan. 1, .1939 to Securities - Department, by
C. F.
laggard group; with convic¬
moderately in the reports Harrtman Ripiey &^Co.,, Incor--Childs & Company, 1 Wall Street,
tion, still with
a
An Outstanding Chemical
gap
of
issued so far this year. Unlike:
porated.
*
•
New York City, "oldest house in
around 10 points to
America ^spe¬
go if they
One issue that was able to the prime chemical
issues,
Mr. Davis graduated from Yale
are
going to show a plus sign turn around and make
cializing ;in
Potash has been able market-; College in 1905. In the following
some¬
with

an

occasional

_

Ripley Pres.

be-j

^

,

■

.

.

»

!
1

.

Boynton Heads Dept.
.

,

for

,

the

much

in

pated

the

news

them

Nor

year.

way

is

of

there

antici¬

that is left to help

a^ong.
Chemical

of

that

chan g

a

can

e

M>le to put up a some¬
what better

showing and

du Pont which had

falls

.

one

around

of the

from

—

the

reported 1 officially
outside

no

when

stand

a

company

for

if not

years,

Sprint

were

harder

Government

thing

necessary

Chemipals for

-

.

least

at

two

is Ameri¬

more,

carried backward to

degree
by the general chemical heav¬
but

able

to

the

a

company

show

was

independent

hold

to

far

i

4u

peak than

Another
be

closer

much
i

its year

financing is

Cyanamid. This had been

iness

wise

to!
•

'

the,low.j

yeaF.he entered - the investment

:

banking

-

York-

able to

the

strong side at times

talk

the

was

stock.

of

score

as

on

the

-revived of

splitting
was
enough

This

to enable the issue to
a

was

—

join the sprinters

points

bounce

from its low

colossus

assured

for

are

pretty

well

There

is

backing

even

for

Interesting Off-Beat
Issue

Some
lanes
like

culing

continued

Brunswick

lender

xi

.

optimistic

as

other steel issues.
its
lis

-

Balke
on




issues
-

Col:,

the lists

securities,?'

of

fourth
iourin

ac¬

.

In

fact,

as

quarter

elected

.was

January

on

results'
results

Quarter

about

a

for

in

have

this

the

been

year

at

$5, including

dollar

which

holding
show.
up

.

was

marginal

considered

Newell

of

is

a

but
out

Vice-President

the firm/ The

1919.

.

continued

He

u

in

ig34 to

for

investor

lately
lately

the
tne

drastically with major
,

sion

a

comcom

and

,

.

expan-

^

.

modernization

under

action than most
The, company.is well

^arT At'S UmTsi^eT^
a

,

[The
article

views* expressed
do

not

necessarily

member

of

its

Finance

.

During the

1930's he served

at

any

as

holders'

protective committee of
Seaboard Air Line, the St.

Mr.

of

Davis

.National-

has

time

coincide,

with

Distillers

.

a

director

Products

as

those

of the since 1936, and a trustee of the
presented Dry Dock Savings Bank since 1925.
those of the author only.]
! . He has been 5 trustee of the Presr-

"ChronicletThef.

El-

Boyn¬
has

closely

e e n

asoeiated with

Boyi.tou

securities

been

-

_

the

business

elected

corporate

"for ""over

20

Vice-President

a

are

-

'

«Thi

{

simDiv

versifying our

of

operations

and

institutional

said.

specialized

offering

to

customers

service,"

"We

will

Mr.

Childs

continue

his

{

Co., Mr.
wat$ ja- director of H. ,F.
a;

ba

'
association

Hallgarten
& Co. and

to

money

of the U. S.

Government."^
td

our
more

a

closely concerned with the

Prior

dA

in

steD

a

Phfghly

and the Flor- market and securities

been

,

in the ranks of?producers

_

a member of the railroad bond- complete

this

in

Com-

^ Wabasha .director of several
of the and is
subsidiaries.

' Louis-San Francisco
! ida East Coast.

grams

better

.

^

he was a direetor of several rail-

of

who

ton,

in 1942.

^r- pavis has been active^,in

di-

\vood D.

b

be

the

\rection

take.part in the formation

elected President of the'com-

pany

pro-, the

nonrecur¬

far

was

depart¬

pe-w'

ment o will'

in

that capacity u.ntil he resigned in

has changed its nature

pany

Childs,

which

company,

account

apathy
apatny,

an¬

President of

Pittsburgh has been available, of the present firm of Harriman
at less than
fiveTimes
Ripley & Co., Incorporated. He
live times earn

recently

been

nounced by F.'

.

.

lengths quite

could

Earnings

group.

off-beat year

with

appearing

solid

ring profit, against $,4.07 last
in

firm

.has

run

by the whittled

common

projected

this year.

more

Cyanamid's

tion than the others—it hasn't

better than
An

Exchange

Stock

New

might Plympton Gardiner & Co. In 1917
Pittsburgh Steel which so 'he became, associated with Jhe
has
failed
tn
tn
Natl0nal Glty Company as head
*
.4
^
!of the Railroad Department, and

strength within the last cou¬
ple of weeks and post that ings which is a conservative
rarity in its section — a new pricing against the mean for
high price for the year.
the group.
Pittsburgh until

long
pull since lower earnings for earnings
the

the

earn

been afflicted

but solved little for the

with

exception

-

-

$237 to around $175

business

with

1

Boynton

Boynton

partner, of Laird, Bis-^

selt and Meeds.-

♦-

i

-

•

*

(2809)

The Commercial and Financial Chronicle

Number 5598

Volume 184

Dank of Montreal

Gerald Loeb Previews 1957 Stock Market
Well-known
stock

offers

stockbroker-author

buying in coming

Bank and Insurance Stocks

advice regarding

firm

This

statement

strong "to weak hands in
to his estimations this may

"A

1956, and according
lead to a downward *•
i

1 »"

-

first time in years,"be
in

one's

the determining factor
profits," stated the stock¬

market

broker-author

Battle

"The

of

Survival."'

MONTREAL, QUE.
appointment of

Stocks

market

attitude

in

(1)

They

<

liquid and with an expectation to modify
ingrained views regarding blue chip retention
and purchase. They realize that we seem to be
more

heading for

He proclaimed

alertness

as

a

•-

G.

Loeb

M.

level."

He

saw

watchword for 1957.

"This im¬

Ocean Marine
Inland

is

likely that
net

declining.

many

"As

gain for 1956."

ket

was

NASD District No. 10 Elects Three
"■>!-'

1

r

.

.

'

.

*

'

11,838,000

8,908,000

after

15.9

Obligations

Stocks

1.8

—i_

>

\

nounced

'

.

j

On only four
a

occasions in the past 25 years were underwriting

1954 and

extended coverage
included, isexpected to
bring substantial '-improvement in, this line, as appears now to be
the-; general 1 industry ^.expectation. i Also, some * favorable * rate
co^st., The introduction of deductibles in the

line/) under "which hurricarie :losses

*

v ••

„

t.

.

place

F. Eberstadt & Co. represented
the - corporation
in
negotiating
contracts for the purchase of the
..

new

bonds.

Jones

Joins

Cosgrove

risks.
"its" $40,411,000 in
direct writings in 1955, New York State
showed the largest volume; • "$6,156,000; Illinois was next with

D.

$3)l53,000.

South Euclid Avenue,

of its

J

•

*i'/;

~

•

Liq.
i

■

/•":

-

"... Profit

$66.77

1947

62.66

1948

Income

—$0.32;',

Value

■-

1946

Net
Net

Fed.

Invest.

Adj. tJnd.

$2.15

65.49

-

Taxes

>

-

SHARE*
High

affiliated

& Miller, 81
members of

Exchange/

the -Los Angeles Stock

Low

59%

43%

1.80

Earn.
Earn. 4

"

Robert

Price Range

.

Dividend
Dividend

•

—

Coffman has become

with Jones, Cosgrove

'

TEN-YEAR STATISTICAL RECORD—PER

Calif.

PASADENA,

Of

f-

:

(Special to The Financial Chronicle) '-.

..

A

diversification

geographical

wide'

has

it was an¬

21, has arranged

Dec.

on

are

adjustments have been ordered.-.
Phoenix

Bonds

,

Two of these poor

truly profit producing basis.

1953, and resulted< to- an important degree
hurricane devastation of those years on the northeast

the

.

r

institutions

u

from

Association,

privately with certain
$40,000,000 of 4%%
equipment mortgage sinking fund
bonds due< July il, 1976. Of this
amount, $15,000,000 will be sold
by the company not later than
June 28, 1957, and an additional
$20,000,000 not later than April 28»
1961. All or part of the remaining
$5,000,000 may be sold on or be-r
fore' April 28, 1961.
to

carried at that date at $109,987,000;
their cost wtfs $29,759,000. >Amohg the larger hoi flings. o|. common
stocks (aside from the stocks of, affiliates) were: 30,1)00 American
Gas & Electric; 28,000 American Natural Gas;*28,600 First National
City Bank, New York; 36,594 Dow Chemical; 9,400 du Pont;
49,140 General Electric; 33,300 General Motors; 24,000 Goodrich;
20,948 Gulf, Oil; 6,920 International Business Machines; 23,000
Socony Mobil; 23,332 Standard Oil of New Jersey.

following:

for

becomes

Braniff Airways, Inc.,

6.5

were

who has been gen¬

manager

Braniff Airways

43.6

-

The holdings of stocks were

years

general

Eberskadt Places

26.2

—

-

Other Assets

of the

assistant

the past four
executive
vice
president after a banking career
extending over 42 years. For the
past two years he has been a vice
president of the bank. He is also
a
vice president of the Canadian

2.3

on

the

at

the following year

an

and last April was made

Bankers'

not

Three

office.

extended trip

an

superintendent

a

Mr. Jensen,
eral

of Dec. 31; 1956, was

Other Investments

—

main
at the

deputy general manager.

$78,357,000

Common Stocks

results

Ohio.

as

3.7%

Preferred

r

Calgary,

agent

an

York

New

ago,

manager

general growth trend of this conservative company.

Other Bonds

Announcement has been made of the
election to NASD's District Committee No. 10 (Kentucky, Ohio)
CINCINNATI,

,,

as

j-

assistant

as
,

Edmonton

the

and

became

he

3,275,000

9,405,000

U. S. Government

i

*

bank's

10,507,000

171,000

as

sec¬

through the Far East as a special
representative of the bank, he was

9,874,000

Cash

He felt that .next year's stocks can be selected to better ad¬

"

office,

at

•

head office. In

company's assets

vari¬

became

he

served

at

manager

follows:

as

vantage later in the period after the market has, "stabilized and;

'

he

superintendent

made

__

Distribution of the

proved itself."
"// '■/ - v
y'>;■, .
<
/"The major motors should fare well," continued Mr. Loeb, "if
current indications are borne out that they will receive a larger
share of the consumer dollar than in recent years."

|

Later
>

2,368,000

Injury___

wide

a

dent, the late George Spinney,

gain in premium volume of about 25%, about in

a

line with the

the

buying.'But it is unlikely that the market will soar sufficiently
to establish a new level above the overhanging clouds."
,

Army,

9,805,000

$63,562,000
This

riding the bull mar¬

by patronizing

higher altitudes simply

Canadian

years

1,494,000

Physical

held

retary to the bank's former presi¬

years,

leading insti¬
tutional selections.
He declared, "Just plain buying and sitting
with the best, which has paid off well in the past decade, is a
tactic that promises to be unprofitable in 1957.
It would be wise
to wait and weigh all decisions on new commitments.
j.
"There may be improved sentiment among buyers due to
current events or inflationary factors, or to increased consumer
to

Bodily

Auto

»

Mr. Loeb cautioned those who have been

Hart has

2,563,000

result,'' he concluded, "it

a

Mr.

ety of important posts since World
War II. After five years with the

7,177,000

___

Miscellaneous

investment accounts displayed a net loss than

more

Ball, president of the

$31,656,000

__

__

vice

bank.

1955

Navigation

Auto

in 1956

"backing and filling at a historically high
individual issues moving in diametrically opposite

price paths with

R.

$32,878,000

_

Extended Coverage

of

one

as

group

Fire

Recounting the stock market's performance in 1956, Mr. Loeb
it

a

Montreal, effective Janu¬

1951

'

described

Gordon

...The principal lines written, with the growth in net premium
volume between 1951 and 1955 year-end, follow:

plies," he explained, "a keener awareness of stock movements and
a willingness to sell when cash is preferable."
Stock Performance

as

plant; numbering about 13,000;
among the 25 largest in the country.

the

of

president, has been announced by

and in Canada. Its casualty

agency

—

Arnold

who becomes executive

sen,

•

f

change of market favorites."

a

large

a

and Phoenix ranks

approaching the coming year 1

are

is

G.

manager

1, succeeding Arthur C. Jen¬

ary

it initiated casualty lines only in

as

general

as

Bank of

1854

in

authorized

an

1950.; There

in equity-cash

(3)

Company, Hartford

incorporated

business is relatively small,

their
thinking;

investment

Insurance

was

The company operates in all states

-

adjusting

are

(2) in individual holdings;
ratio.

'

_■"?.•

1

"Shrewd- investors,

Phoenix

company

Canada

The

Hart

.

Investment

for

'

V

Insurance

—

under Connecticut
capital of $200,000. Originally its writings
were
limited to fire, inland navigation and ocean marine, but
expansions in the lines written later took place so that ultimately
all classes of business were written, except life.
In 1911 a start
was made on the. organization
of a fleet with the acquisition of
Eqqitable Fire Marine Insurance Co. of Providence.r Other com¬
panies .were brought into the group,' and today there are five
members after the absorption in the past two years of three of
the units. /■ * % ' ,r
i
.
„

degree of liquidity may, for the

proper

This

law with

have passed from

tendency in the forthcoming year.
j

The
-

the stock market and its outlook.

on

He added that many stocks

a

Week

"Although cash has been losing purchasing power in

recent
years, it should nevertheless be conserved for favorable, buying
opportunities that may develop during 1957," advocated Gerald M.
Loeb, partner of E. F. Hutton & Co., New York City, in a year-end

j

Manager

Jensen Exec. V. P.

By ARTHUR B. WALLACE

leading institutional selections "is a tactic that promises to be
unprofitable in 1957."
-

Hart Gen.

Says policy of patronizing the

year.

17

57

43%

$1.83

$1.80

'

BANK

NATIONAL

*

Russell

August

Ebinger

Lorenz

W.

2.24

$0.05

2.69

2.03

2.36

0.25

4.14

1.80

54

44%

Bankers

62%

48

Kenya Colony and Uganda
Head Office:
26 Bishopsgate,,

63%

47%

Clancey

Power

1949

W.

P.

Cincinnati, and Russell Ebinger, Almstedt

& Co.,

Clancey

76.07

4.17

2.69

1.36

5.50

2.10

1950

August Lorenz, Lorehz & Co., Columbus; W. Power Clancey,

-

83.76

1.63

2.98

0.73

3.88

2.29

Mr.

Lorenz

entered

the securities business

in

In

1912.

1951

.

0.62

90.41
96.92

1952

1926

-

3.17

0.11

3.68

2.25

63V4

55%

2.36

3.27

0.71

4.92

2.25

78

60%

'

he

became

partner
Lorenz and in 1942 formed his

Vercoe, * Fuller

Stevenson,

in

general

a

own

&

firpn,

1954

1925-1930, and formed, the partnership

cinnati

' /

Co. in 1930.

&

Mi*/ Ebinger

i

joined

National Bank in 1922.
in New York
in 1931.

He

1950 -until*

vestment

with

prior to returning to Louisville with Smart & Wagner
President of Wagner, Reid & Ebinger, Inc., from
when this firm joined Almstedt Brothers with

Colo.

Co.

offices

boldt

rities,

has

at

Street to
*

>

Herman

—

registered representative.

Inv.

<

and
,

.

Empire In¬

been

formed

2492 South
engage

in

Hum¬

a

business." " Officers

peorge Stroud,
presidents;-

of the-Louisville

was

Form Empire

.

Bond Department

the

He served with several securities houses

1956

whom he continues as

DENVER,

of W. P. Clancey

.

129.84

Lee

P.

Adas,

Stroud, secretary-treasurer.




Francis Lauro

'.HOLLIS,
Lauro

,

are

Y. —
is "'conducting
N.

Opens
Francis Ga

securities.

business from offices at 9017 195th

Place,'

vice

T.4
...

) Dumont Sees.
has

been

80- Wall
engage

Securities
formed

Formed
Corporation

with

pffices at

Street/ New York" City to*

in

a

3.84

0.14

1.75

2.55

99

0.21

2.78

3.00

98

77

for stock

dividends of 33V-i%

in J954 and 23%

S. W. 1.
Ceylon,
Tanganyika,.
Uganda, Zanzibar, and Somali-

13, St. James's Square,

-

Authorized

Paid-Up
*

>

the

portfolio valuation.

unearned

securities business.

at

At the end of 1955
(policyholder's surplus)
conservative ratio, and one that

to. 1.00,

a

very

in premium volume if management deems
advisable. In the ten-year period the gain to the share¬

permits/an.'increase
this to be
holder

was

$91.49

The stock of

a

share,

or

an

average

of $9.15 per annum.

Phoenix-Insurance has wide acceptance among

institutional investors.

£4,562,500

Capital

£2,551,562

Capital

Fui»d
£3,104,687
The Bank conducts every description of

_

banking and exchange business.
Trusteeships and Executorships
'
also undertaken
-

,

.

BANK
and

INSURANCE
STOCKS

The exposure is low.

premium reserve to capital funds
0.36

.

Protectorate.

Reserve

in lil50.

payments have
been maintained without a break.
Since organization total cash
payments have totaled $71,869,000; stock $4,100,000. The present
annual rate'is $3; and at a current market price of about 66 % the
yield is approximately 4.51%;
In the decade ended with 1955 the. company's underwriting
.profit..margin averaged 4.2%. Investment-income increased by
116% in the period; and there was a price appreciation of 65.9%,
'fallowing for the adjustment for stock dividends in each case. In
jthis decade there was an increase of approximately $45,682,000 in

.

London, E. C. 2.
(London) Branch»,

Burma, Aden. Kenya,

68V4

4.01

in

Government

End

land

—rl.02

the

Branches in India, Pakistan,

66

Dividends—Except for the years 1872 and 1873

stood

Dumont

•

to

-

-

secu¬

president"; -Carl W.

and ..'/Virginia

.

♦Adjusted

81%

—2.15

119.50

1955

Clancey started in the investment business in 1919. He
served as Manager Df the Bond Department of the Bank of Cin¬
Mr.

/

2.55

3.82

0.07

3.68

0.21

97.97

1953

of INDIA,

West

Brothers, Louisville.
■

LIMITED

0.49

•

Laird, Bissell & Meeds
Members
Members

New

York

American

120 BROADWAY,

Telephone:
Bell

Stock
Stock

Exchange
Exchange

NEW YORK 5, N. Y.

BArclay 7-3500

Teletype—NY 1-1248-49

(L. A. Gibbs, Manager Trading
Specialists in

Dept.)

Bank Stocks

f

18

(2810)

The Commercial and Financial Chronicle

.Thursday, December 27, 1956

..

This

Wrong from Top to Bottom!

Railroad Securities

"Corn faces
now

law,

By GERALD D. McKEEVER

stand,

be

On

Dec.

17

creases

for

two

Eastern

roads

roads

announced

territorial

only

1952

to

"This
there

compliance.

increase

as

increase.

it

last

granted

was

time, however,
the 7%

what

to

March

7.

time

Nothing

the

done

was

Eastern

6%

general

the

Potomac

roads

are

in the respective sections. There is obviously a
over-lapping in the Western group in the case of
entering Chicago but this is relatively unimportant since
increase figures do not purport to be exact anyway. They

based

,

each

case

justments,

these

and

For

will

factors

instance, jit

affect

reads

some

The purpose

the

set

which
have

with
as

of the emergency freight rate increase is to off¬
increases that became effective as of Nov. 1 and

wage
are

will

or

settled

be

with

retroactive

made

The

date.

roads

the

non-operating unions but the settlement
"brotherhoods/' which embrace about a third
employees as the "non ops," is still pending. The cal¬

many

culations in the tables to follow

are

that

to

the operating

all—viz.
on

about

6%

a

based

are

on

equal treatment for

increase and both indicated

wage

annual basis.

an

'

'

'

121/zc Hr.

7% Freight
KateIncr.

Baltimore & Ohio

Aroostook,

Kate Incr.

Wage Incr.

4

$

t

*$5.37

$2.43

For

10.0

*1.60

0.60

case

1.1

2.50

1.26

2.9

1.38

0.84

Western._

some

but

was

2.2

*1.22

0.72

tal.

Even

*41.5

25.4

*3.00

1.88

able

to

*11.6

4.6

*1.35

0.54

6.3

4.9

2.75

2.16

*13.9

5 1

*1.28

0.43

*52.8

31.1

*1.93

1.14

*8.1

3.9

*2.80

1.35

_

..

...

Virginian Ry.

*4.2

0.9

*3.2

_

1.3

millions

before tax.

$After

applying 52%

II—WESTERN

Chic.,

Milw.,

St.

1.6

Paul

&

Rock

Island

&

Pac.

Northern

Kansas

,

1

rate.

Rate Incr.

Wage Incr.

$

$

.

$0.49

4.66

(Syst.)

objectives
is

.

,

8.2

1.53

i: 0 93

2.0

0.82

0.43

7.9

0.96

0.63

4.7

1.6

2.26

0.75

to

build

and

,

We

_

fApproximate millions before

tax.

need

calculation
the

made

then

in

nomic

earlier,
objectives include

dollar

and




sound

stroy

on

an

even

savings

thrift.

our

and

eco¬

stable

a

growth.

keep the purchasing

Unless

power

keel

we

of

de¬

discourage

That, in itself, will retard

3.9

1.67

1.06

Not

29.8

21.6

1.57

1.15

0.48

with

0.32

Income

the

and

into

to

sav¬

ing stream if the government does
to

place additional

pur¬

power in the hands of the

public at this time, perhaps non¬
assignable certificates for the
amount

of

issued.

These

the

tax

cut

should

certificates

be

could

mature five years from the date of
issue
but be
redeemable at an
earlier date if conditions

expansion
of the

sources

of

faced

that

as

cash

is

re¬

is not the

pressure

result

a

such

are

the

public is desirable.

Inflationary

of

we

the

are

capital

Another factor

disturbing is the hugh in¬
in

crease

merchandise

our

trade

Tax

rate.

1955

wage

Imports of both consumer
capital goods have surged up¬

ward

so

year

is

that

import total this

our

likely' to

be

risen,

but

billion

$1

Exports have
by as much,

not

the increase for the year
being es¬
timated
at around
$400 million.

Thus,

are

we

deficit of $1

with

faced

trade

a

billion.

Ordinarily
these

ada

as

pands.

tion.

There

against the

trade

a

proportions

deficit

would

of

involve

the

rewards
it

of

more

savings

but

they

difficult

to

drop in

a

But neither of those devel¬

have occurred. So great
has been the flow of foreign capi¬
tal

into

Canada

that

the

trade

deficit has been financed without

difficulty.
external

dollar

to

save.

At

the

value

the

has risen and

is

to

time

same

of

encourage

The

for the

the

Canadian

the

effect of

imports and

discourage exports whereas

need is

reverse

our

huge trade deficit and the

size of the present flow of foreign

plus.

to

reduction

seems

in

could

we

taxes.

undesirable

To

to

the hands

expect
me

leave
of

the

it

the

me,

into

Canada

vulnerable
investment

sure

continuance

to

rate

of

If governments could be
to use surpluses

it is

for

they

find

ways

spend it.

Only for

debt reduction there would be lit¬
tle cause for concern. But
govern¬
ments
are
human

organizations,

are,

economic

it

points

economic structure. True,

foreign

gov¬

ernment

trusted

capital

we

funds

of

seems

in

our

our

need

to

as¬

postwar

uneconomic

avoided.

a

relation

expansion,

but

our

-dollar

to

high rate of premium in
to

the

of

period like the present when the
capital investment program is al¬
ready straining our resources. In
my

opening remarks I referred to

the

unsettled

tion.

international situa¬

The so-called

between

and

cold

two

social

is

war

rival

a

eco¬

systems—inter¬

national communism and what we
call
the free enterprise system.

Canadian

experience is striking
proof of which system contributes

most to human welfare.

Canadian

development in
period
has
been

postwar

the
un-

Economic expansion has
exceeded our fondest dreams. The
fabric
has

of

is

the

American

dollar.

business

our

been

greatly
has

Most

fact

structure

strengthened.

s

h o,w n,

rapid

important; haw ever,

that* Canadians

gener¬

ally have earned for themselves a
substantially higher standard of
living; No socialist country has a
standard
that

of

which
have

we

living comparable to
Canadians

achieved

position which

we

enjoy and

the

enviable

occupy under a

system of free enterprise without
surrender

of

any

basic free¬

dom.

Assuming

peace

can

be

main¬

tained the prospect for Canada is
continuing economic progress.
Problems, there will be and the
long-term uoward trend may be

interrupted from time to time
Canadians

are

reach

be

taking to ' manufacture products
imported. Of course, such a
plan could not be instituted in a

Canada's

cause

should

program

a

now

tions.

to *

industries

Perhaps

accelerated depreciation should be
considered for companies under¬

little embarrassing when it
.Comes in such substantial.propor¬
a

as

strong arguments
tariffs fpr this
establishment
of

of

The

purpose.

the

of this.

This year the Government of
Can¬
ada will have a substantial
sur¬

Normally,

are

use

equaled.

opments

this

only do high taxes reduce

make

pending freight-rate increase showed
margins in favor of the carriers. As it
became evident
tdWard "the middle oh-the year,
however, it was not working out
that way.
similar

develop thrift and

growth.

connection

postwar experience is that
products formerly
imported are being made in Can¬
and more

growth.

surplus in

and

to

al¬

goods

not available.

Population

a

increases

or

that

sure

Our

dollar.

getting a good deal, and particularly so in the East. As
mentioned
previously, however, such an assumption is
contrary to fact.
similar

his

make

made-in-Canada

the external value of the Canadian

0.58

Fed.

decrease

also

And where

As I remarked

0.80

$After applying 52%

tax

higher than in 1955.

person entrust

to

ternative

terest rates.

6.0

24.3

In this connection
Canadian
firms should review their
foreign

the domestic market ex¬
The matter of speeding up
this process by the use of
positive
incentives should receive atten¬

reduction

tax

a

the

rate

of

for reducing our
is desir¬

imports

on

able.

finapcin£, problems and

On the strength of the
assumption that full allowable freight
rate increases apply, it would
again appear that the roads are

A

we

our

reasonable pros¬

a

program

dependence

encourage; it jwith. incentives.
This is one of the functions of in¬

8.3

22.2

_

we

.

6.0
l__._

—

brought

are

benefit of
direct

develop

to

higher

a

necessary.

2.12

-

are

we

a

can

3.30

Pacific

if

If

utilities

her

8.4

Southern

economic

factories,, plants,

public

better

13.8

Union Pacific

our

savings is

the dollar

Francisco

the

resources,

we

Louis-San

and

As the income of Ca-

houses ' and

1.36

St.

years

though enlargement of

a

nomic

0.44

__

mines

new

export trade is
pect,

and

1.90

,

Even

nadianshasincreased, savings have

0.67

Pacific

rapid

a

few

an

shipments abroad will

as

struggle

2.3

Northern

next

be

more

that

to

5.6

the

should

nickel

deficit.

0.7

_

in¬

high rate of savings

a

required.

3.2
__

for

plan of national

a

investment boom.

1.0

_

demand

long

growth

Missouri-Kansas-Texas
Pacific

about

term

Minneapolis & St. Louis

Missouri

the

funds.

4.27

1.03

3.7

,

meet

1.74

2.40

7.2

we

savings than in our financial
institutions, which in turn assist
in financing such
development?

$0.32

2.18

7.7

in

and

Crude petroleum

expanding at

health insurance. Some way needs
to be found to give, the
public the

only problem with which

want,

0.8

the talk

economy is being brought home
to Canadians. To assure our

our

$16.3

increased

imports of capi¬
have not been

our

so,

have

For the first time in
many years
importance of savings to the

are

Tax

12.0

City Southern

rate

are

uranium

they have cash in the till; hence,

the

Per Share

■

8.0

Denver & Rio Grande Western
Great

coal.
Income

9.7

Pac.

Chicago & North Western
Chicago,

of

expanded, but not enough.

ROADS

Atchison, Topeka & Santa Fe $24.5
Chicago Great Western

on

Fed.

5% Freight
12V*c Hr.
Kate Incr. Wage Incr.
t
t
'r

"

-

11 0.92

*2.42

*Probabiy particularly, unrealistic because of "hold-downs"
•f Approximate

0.34

this has been the

shortage in

have

so

vestment

*1.34

from

not

are

savings

our

*4.5

Y., New Haven & Hartford

arise

tation of capital from abroad. This

Lehigh

...

in

case

developed into

increase

savings
overshadowed by the impor¬

and

New York, Chicago & St. Louis

a

few years

a

an important
commodity and export
Earnings from this source should

6

page

funds

the

1.02

Maryland

short

is

ore

export

and

from

years

2.08

Valley

Iron

In the space of

important
source of foreign
exchange earn¬
ings.
Prospects are that copper

chasing

2.45

5.2

Western

point.

really correct the situa¬

not wish

0.96

10.5

RR.

ever

Nothing

saving
enough to finance all the capital
projects we wish to undertake.

4.20

•

money invested in re¬
development is now paying

dividends.
it has

subsidies.

will

surgery

Canadians

we

Erie RR.

Reading Co.

farm

savings. The fundamental fact of
the tight money situation is that

year

Pennsylvania

amount of
source

are

*26.5

Western.

corn

exports

of

at hand

long-term prospect is for ex¬
pansion of our exports. The huge

purchases

2.75

4.8

&

and

deficit appears

the

of loans it is reasonable to
expect- and they find it difficult to resist
that
bapk
funds
advanced' for the temptation to spend more if

2.8

Delaware, Lack. &

Norfolk

excessive

Benson

immediate solution for

no

trade

our

Taft

Ezra

Looking Into Canadian Economy
And Continuing Economic Growth

0.36

2.1

N.

While

no

it could well be, when

as

obligations mature.

into production.

1.0

Chicago & Eastern Illinois...

by

govern¬

taking advantage of the

continue to rise.

Continued

4.7

__

Central

and

production

might be upset."—Secretary of Agriculture

Investment

$12.9

Chesapeake & Ohio

New York

bank

corn

building under the N.H.A.
plan will continue to decline.

* $34.5

Maine.

&

soil

tion.

Per Share

WageIncr.

t

Boston

these

house

increases

-

I—EASTERN ROADS

Bangor &

premium,

than

more

by the President of the New
York Central on Dec. 18 that the freight rate increase will just
about even the wage increases in the case of this road.
The tabu¬
lation is mainly useful for comparative purposes.

In

States

also creating a condition
which

are

stated

was

United

Municipal

day may prove to be costly
if the United States dollar
is at a

•

radical

due to hold-downs and rate concessions and ad¬

others.

the

principles

a

in any instance

in

Present arrangements
may suffer the infirmities
Mr. Benson lists, but
basically the trouble is in the

horizontal application of the percentage increases
whereas the full increases will scarcely be enjoyed

on

funds

higher. One source of
inflow, however, is bor¬

bodies
are
aggravating
an
ex¬
change situation which is already
harmful to our exporters.
They

Consequently, with

no

be

balance

principally

an

Otherwise,

Canadian

on

somewhat lower rates that
prevail
in
the New York
market, these

practically no
Furthermore, few

Benson.

the roads

of

involve

dollars.

Provincial and

prices very low. Livestock production might be
unduly stimulated. The whole feed grain-livestock

small amount of

of

form

equipment which

be

rowings

years

sharp that

so

program,

could

increase award to date, each including the roads whose territories

the rate

would

the

necessarily

premium

capital

be

to do.

virtually

following tabulation showing the theoretical relationship
the freight rate increases and the wage increases is con¬
sequently, divided into the two sections considered in the rate

in

below the

greater cut which would

corn

The

are

the

necessary

wish

of the

not

exchange

to come into the
soil bank, which
many of them

between

are

does

initially

and

some of the

in

is

some

be

,

East

and

will

even

will

strictly those serving territories north
Mississippi, but the three Poca¬
hontas roads, the C. & O.; Norfolk & Western, and Virginian are
also included with the Eastern group in the case of this rate
increase.
The Western roads are those operating west of the
Mississippi.
of

and 27%

crop

machinery

the

farmers will be able to take the

this

at

to the application of the Southeastern roads for
These roads filed late and their application

be dealt with separately.
The

the

at

was

level

Fortunately

inflow

ments.

is

cut

the

sections

the

under

1956.

ference, the Commission explained, was to restore the relation¬
ship between the rates of return on investment of the roads in
two

below

1956

during the

acreage grown

7%

applied for but the Western
increase.
The reason for this dif¬

5%

a

14%

the

capital

finally enacted by the
Congress. It is 36% below the

"emergency" freight rate in¬
of railroads.
The so-called

groups

the full

received

given

were

ICC

the

for

must

we

moment.

As matters

level

Wage Increases

vs.

allotments

acreage

reduced

announced

Freight Rate Increases

impossible situation.

an

to be the position
find ourselves at the

appears

in which

dent

as

generally

future is bright.' Confi¬

we

are

of this, Canadians

looking forward to the

of The Royal Commission
nomic

but

that

agree

Prospects.

reoort

on

Eco¬

Expectations

are,

Number 5598

Volume 184

...

(2811)

The Commercial and Financial Chronicle

that for the first time we will have

Soviet Gold Sales

adequate inventory of our re¬
For business and those

an

sources.

Our

directing economic policy the in¬
ventory of resources will be of
major importance but even more

full

great country of ours.

was

will be

1957,

held

This
will

Canada's

ada".

at

28%

"

•

ex¬

of

to

Canadian

on

the

short
^
'
The program will open with a
luncheon, to be addressed by Dr.
O. J. Firestone, economic advisor
to C. D. Howe, the Canadian Min¬
"

Commerce.

and

As

the

in

-

and

gas,

natural
The

of mem¬

Mr.

be

of

speakers are com¬

Douglas Ambridge,
Abitibi Power &

and

panel

industry,

from

tives

on

Petroleums,

Merrill

Ltd., Interprovincial Pipeline, and
the Canadian Gas Association.

Gross to be Partner
In C. J. Devine Co.
Cross, Jr., will be
admitted as a general partner to
the securities firm of C. J.
DeJoseph

G.

&

York

is

it

will

Beane;
and

lynch,

J.

Cairns

N.-^Y.

is

a

offices
Avenue, New York

securities business from
520

at

Fifth

City under the firm name
ert Edelstein Co.

of Rob¬

,

SAN

JOSE,

Calif.

Venorris

—

Taylor has become associated
with Schwabacher & Co., Bank of

M.

was

for¬

merly with Sutro & Co. and
liam R. Staats & Co.

Wil¬

America

Building... He

Joins Henry

Hartman

(Special to The Financial Chronicle)

SHERMAN
Thomas

J.

OAKS,

Inglott

Hartman,

is

Calif.
—
with

pal of the firm.

'

"iV.r'-V;' >




about

$30

as

million

have become used dur¬

we

This

est.

&

aroused much inter¬

the

is

highest figure of

it

formed

Wall

Street,
an

with

New

offices

resumption of Soviet gold
attention, because

is

York

investment

It

icy

have

nothing

but their
probable

lose

to
it

"So

seems

the future feel impelled to
cise

certain

a

degree

a

of

Some

of

as

certain

-

goods-

Poland, will achieve
degree
of autonomy,

them, such
will

which

exer¬

of modera¬

their

make

exploita¬
difficult. •
;

tion by Russia more

the Soviet Union will need

But

goods. There is
growing discontent

consumer

workers, and an
supplies of con¬

Russian

among

the

in

increase
sumer

a

goods

have become a

may

after

Stalin's

gold hoarding pol¬

be modified for a
During the short¬
Malenkov regime it was de¬
to
period.

came

The

tion.

rulers

the

of

Kremlin

want the

gold, not for the purpose
of
providing the Soviet citizen
with essential goods, but for the

enhancing their own
and power. To them a

of

purpose

prestige

goods, large gold reserve means just an¬
and other other weapon in the pursuit of
precious metals. Between October their imperial designs of world
1953 and February 1954 gold, sil¬ conquest.
It is useful to have a
ver and
platinum to an estimated large gold stock in order to be

ing tne volume of consumer
to

export

gold

some

million, able to launch out economic of¬
exported. fensives in uncommitted countries.
But after the eclipse of Malenkov, It may even serve the purpose of
the more liberal attitude towards engaging in operations on Stock
the
long-suffering Russian con¬ Exchanges in foreign exchange
sumer
was
abandoned, and the markets and commodity markets
hoarding of the gold output was if in doing so they can cause trou¬
and

£50

between

of

value

•

Marc

Peck & Son

Peck

Partners

Stephen M.

are

City

to

Peck, both of whom are Exchange
"

limit

a

ernment has resorted to that solu¬

until

not

was

short

37

members.~

to realize that there is

established

death that this

at

business.

rela¬

exploitation beyond which 'the
victims come to feel that "they

the Soviet Gov¬
policy. Al¬

contrary to

part with any gold.

ated.

Barney Peck and

more

its

—

business.

offices at 120 Broadway.

be

in

political necessity. The realization
by Russian workers that it is pos¬
though the gold output in the
sible, after all, to resist Soviet
U. S. S. R. is believed to be run¬
tyranny will go a long way to¬
ning at a high level, the rulers wards
impelling the Soviet Gov¬
of the
Kremlin pursue the end
ernment
to
provide more
con¬
of piling up the largest possible
sumer
goods. At the same time,
gold hoard.
This has been the the Kremlin does not want to
official policy — apart from one
neglect either industrialization or
brief interval
throughout the
arms
expenditure.
The only al¬
post-war period. In the late for¬ ternative to
producing more con¬
ties, when timber was desperately sumer
goods at home at the cost
needed for the reconstruction of
of producing less capital goods and
the devastated towns and villages,
arms is importing more consumer
large quantities were exported to
goods. To that end, it is essential
pay
for essential imports. The to
export more gold.
Soviet Government preferred
to
It
must
have
been
only with
delay reconstruction rather than reluctance that the Soviet Gov¬

& Son, members
of the New York Stock Exchange,
will be formed January 1st wilh

Securities Distributors, Inc. has

had

deserves

ernment's

Building to

securities

Form Barney

been

—

to

future

to

evidence of

a

cided, in the interests of increas¬

Nev.

likely

the

more

This

Cq„ has been formed
in the Virginia and

Ventura

13531

Form Sees. Distributors

conduct
„■

gold sales since 1953, and
well be only the beginning
much larger gold movements

sales

engage in a
Officers are
Marc
Sterling,
president; Law¬
rence A. Nessamer, vice president;
and
Jack
A.
Makes, secretarytreasurer.
Mr. Sterling and Mr.
Nessamar were officers of Colum¬
bia
Securities
Co.,
Inc.,
with
which Mr. Makes was also associ¬
Truckee

in

tions with satellite states. Moscow

of

during

offices

Barney

—

—

with

is

lesson

careful

that the Soviet authorities will in

mar¬

ing the postwar period, the trans¬

YEAR!

Sterling

its

it may

Sterling Co.

the

important,

more

even

tinental

of

actions have

now

Inv. Co.

Co.

Investment

-

which

Bonds

CITY,

haps

ex¬
per¬

Soviet Government, having learnt

appear in
comparison with * tion in. exporting the
large - goldJ movements
to the satellite countries.

may

the recent break in

CARSON

(Special to The Financial Chro^ic^e)

Henry

Great East¬
has
been
formed with offices at 67*17 218th
Street to engage in a securities
business. Roger Fred is a princi¬
BAYSIDE, N. Y.

ern

total

the

Sufferers

Forim Marc

Boulevard.

Great Eastern

the

.

NEW

change

Chains."

Einzig

kets. Modest

obligations were offered in very

Opens

is engaging in

Robert Edelstein

was

in Zurich

million

£60

was

ble to democratic countries.

resumed.

%

Hungary

of 'earning foreign
for Russia. What is

and other con¬
Paul

these

into

r(WitH Schwabacher; Co.

R. Edelstein

amount
sold

the Intermediate Maturities

HAPPY

■i

— Glad¬
engaging in a
securities business from offices at
35 West Main
Street under the
firm name of G. J. Cairns & Co.

SM1THOWN,

mately similar

& Co.

J.vCairns Co. Formed

stone

that

approxi¬

an

than government

Fenner &

Pierce,

predecessors.

G.
'

previous associations in¬
Sachs
&
Co.;

and Smith, Barney

and it is

believed

securities, especially the more distant
of certain corporate bonds was
much better than the market performance of Treasuries, because
the former issue did have some minor price protection through
the operation of sinking funds. The better return which has been
available in corporate and tax-exempt bonds during 1956 resulted
in a considerable amount of switching out of Treasury issues.

Goldman,

Merrill

lion,

to

£5 mil¬

about

The market action last year

ones.

who has been with
C. J. Devine since 1947, has been
in
the
securities business since
1929. His

have

to

senior corporate financing is
"VA
V

quotations of government-securities

in

Corporate and tax-exempt

Cross,

clude

are

amounted

in short-term interest rates

buying

investors

their Russian

made

purpose

sizable

large volume during the past year, and as a result yields of these
securities went to levels that made them much more attractive to

trading department.
Mr.

so

lived

City, effective January 2,
announced by the firm. He
head
the
municipal
bond

has

useless, for the time being, for the

more

Higher Yields on Non-Government

48 Wall Street, New

vine

Co.,

was

year

siderable

metals

man

becoming

The rise

industry, and a
the oil and gas
including
representa¬

ing

ations carried out by
oppressors

estimated

during 1956 brought con¬
securities, with corporations being
the principal takers of these issues. Private pension funds, along
with these who had taken money out of the equity market, were
also buyers of the most liquid government obligations.
A large
and active market even in the face of rising interest rates still
exists in Treasury bills. The intermediate-term governments were
under pressure during 1956. because the commercial banks were
sellers of these maturities during most of the year.
However, yields on certain of the middle-term Treasuries
have recently reached levels that are now attracting the money of
investors who have had funds in other types of securities.
The
relatively short maturity of these obligations, the high yields and
the fact that as they approach the due date quotation will move
toward 100 has brought important buying of late into these issues.

Paper

economic upheavel created

The

by the uprising of the Hungarians
and by the brutal military oper¬

mar¬

Soviet

kets.

to resist Soviet op¬

came

pression.

London

and credit last year

money

Important Buying in

Presi¬

Company, two men from Gairdner & Co. ol Toronto on the min¬
five

December,

bullion

quotations. Tax selling, along with the lack of demand for Treas¬
ury obligations because of the more favorable yields in corporate
and tax free obligations, were mainly responsible for the down¬
ward movement in prices of long-term government securities. >-

ing down from Canada. In addi¬
tion to Dr. Firestone, there will
dent

of

•

-

registered in many of these issues until

ones

ciety who have been very helpful
in securing speakers for program.
A total of nine

past

'they have nothing to lose

despair,

During the

—

weeks

inter¬

registered

Analysts So¬

the Toronto

bers of

three

hallmark

was
very large, with
new all-time lows being
in many of these issues., The longer-term bonds, as
was to
be expected, suffered the most, with the 1953 lows being
breached in no uncertain terms. The 1953 lows had been the worst

the

expressed

has

SQciety

for

recession

The

-

industries.

thanks for the assistance

feel

Russian

and paper, and
Canada's principal

resource

-

Long Bonds the Greatest

metals, pulp

oil

'

.

particular interest. Following Dr.
Firestone's, speech there will be
three afternoon forums on mining
and

demand

was

to

gold sales in
'

'

*

all, more than 50% of the cost of
borne by the government. *\
I

should be of

remarks

Firestone's

come

gold bars witn hammer and sickle
reappeared on various
;
European

obligations during most of the year.

costly.
However, the increase in the interest rate did not in any im¬
portant way result in the deferring or postponing of financing of
large projects. The high level of income taxes is one of the def¬
inite reasons why bond financing from non-government sources
has not been too much disturbed by rising interest rates.
After
credit

of; the top economic advisors
Canadian government, Dr.

one

first

bonds kept the pressure

time, but these
upward movements in prices were of short duration because the
trend of interest rate.s was also upward, and Treasury issues had
to meet this competition for the available supply of money and
credit.
Inflationary forces likewise were in the ascendancy dur¬
ing the year, which meant that the monetary authorities kept the
pressure on the money markets.
The several increases in the dis¬
count rate in 1956 is ample evidence that the cost of obtaining

of one afternoon.

ister of Trade

Treasury

LONDON, Eng.

favorable yields which

more

quotations of government securities from time to

the

in

The

Dr.

but their chains'."

non-government sources that Treasury obligations were on
the defensive most of the period. To be sure there were rallies in

most im¬

its

and

industries

portant
space
*

up-to-date

get

scene

victims

.

*

The

corresponding period of last year.
This forum will provide an oppor¬
tunity

the

from

and Gross Na¬
Product
during the first
1956 was 12% above the
program,

tional

1956

background.

pressures necessitating
result of events in Poland,

a

growing Russian workers discontent.

even

Treasury Market Constantly Under Pressure

record

year's

'

•'

projected

are

last

above

capital
half

1956

in

penditures

Capital

''

est rates.

growth has been remarkably high
in the post war years.

which

market, will still be under the pressure of rising

the money

economic

of

rate

Can¬

in

"Investment

on

prevailed in the mar¬

Also, the predictions for the coming year do not appear to be fore¬
casting any decrease in the competition for the available money
and credit.
This would seem to indicate that Treasury issues, and

Hotel.
general subject

the

year

be

in

the

into

as

Einzig points out the extent to which U. S. S. R. has exploited
its satellite and how it realizes that there is a limit "beyond

and credit from business and industry
that government securities were pushed

available in corporate and tax-free

quotations of

on

on

the Midland

at

sizable

so

were

Society of Chicago
Thursday, Jan. 3,

ment Analysts

imports

consumer

Hungary and

long time because of the

a

these issues.

farther

Invest¬

the

of

increased

The demand for money

The seventh

—

Forum

which takes first place for

uncertain and demoralized conditions which
ket for

Hold Seventh Forum
CHICAGO, 111.

sales, and relates it to urgent political

the defensive,

on

past one,

Chicago Analysis to
Mid-West

By PAUL EINZIG

Noted British economic observer describes recent Soviet gold

bond market during the past year was very
with the tag end of 1956 bringing with it
new
all-time low prices for most Treasury securities.
1953 was
one of the bad years for government obligations, that is until this
much

this

of

potentialities

Governments

on

The government

it establishes for the achievement
the

Reporter

By JOHN T. CHIPPENDALE, JR.

significant will be the guideposts
of

19

with

of

the

Russian gold is connected
recent
events in Hun¬

of

sale

resumption

latest

The

the

Poland.

and

gary

Kremlin
satellite

Hitherto

the

the
states for the purpose of
ruthlessly exploited

earning foreign exchange for the
Soviet Union.
When some years
ago

the Soviet Government agreed
export of large quantities

to

the

of

coarse

found

grain to Britain, it was
the
maize that was

that

Russian but
Rumanian.
Likewise, the Soviet
authorities forced Hungary to ex¬
delivered

port

was

large

Moscow

satellite

not

quantities

of

the

of

port
come

must

things
An

in the im¬

goods

consumer

an

first,

come

increase

be¬

has

urgent necessity to such
as
to make it expedi¬

extent

an

ent

to weaken to some

economic

cold

war

extent the

potential

rep¬

the gold reserve. The
misers of the Kremlin may hate

resented by

parting with their gold, but

part
the

with

it

disturbances
have

all

alternative
reached

by

the same,
is

the

consumers

the

limit

they
since
of
who
their

risk
of

endurance.

wheat.

unfortunate
countries to over-export
forced

First

however.

Forms Larkin Inv.

CITY, La. — Robert
such an extent that
time to time B. Larkin is conducting a securi¬
acute shortages of this staple food ties business from offices at 1535
in these countries. It was largely
James Street under the firm name
because of this exploitation that
of Larkin Investment Company.*.,
the Hungarian people; driven to
BOSSIER

their grain to
there

were

from

20

(2812)

The Commercial and Financial

Continued

from first

the

page

that

reason

factors

there

all

are

the

And

affecting

there

clearly

is

Chronicle

no

The
4

i

;

in^rp^infj

the

in

past

y

?een

when

it

eoods and

monev

encountered in increasg

supply. There have

in

tion

the

Thirties

bid

f

increase it. Exces

huge amounts
to

"P

ated

accumu

m

,imost

borrowers.

It should

ihnnld

be

^

'

that the

aooroached

for

ments

facts

There

which

face

is

of

haH

wp

between
Detween

the
ine

variables

'

Money, credit and related top-

ply.

ics

been

began.

remain

the

controversial

They

made

for

so

likely

to

long

a

controversy

while

to

on

plane

a

is

those

hp:nfr

metallic

<;npn4

and

„ ghould be

J!

Uaa

good

be

to

able

observations.

read

to

/\VT

author

Their

going for
produced and

are

(_f

and

years

.

example, partial or full

'etirement
£

months

of

debt

interest

pay-

settlement of contracts, inas
the result of court

so on. Some payments are made in
Bank debits represent the use of
to the heart of a major
anticipation of goods or services deposits. It is checks and drafts
fallacy in the common arguments not
yet produced or finally priced, agarnst bank deposits which condealing with the supposed relaProbably relatively few goods and at'tute
tionships between currency sup- services are
priced at the time Ba"k daP°s»s not
injjse aie poply, business activity, prices, or
payments are made—we do not tential purchasing power.

l\as

gone

a^e

no me

other

gross

national product.

consideration

such

as

He is fai

ahead, in his insight into facts, of
the

general

of

run

literature

011

the subject.

The

know.
stores

for

But

most

practice

of

those

So

that

the

prices,

of

money

fixed

of

which

were

with

we

-re^o

Therefore, to relate the

retail

exchanged our
for the goods purchased,

is

it

to

go

part,

sometime before
currency

common

know

we

the

we

as

outside

banks,

cannot

we

volume

the

trace,

use

and
from

bank deposits which, apart
debits are not in use, to a segment

and, of prices, most of which probably
wlio stress the "money supply" as apparently, with most other
things were determined in times past, is
!m important casual or
controlling people buy or pay for. Auctions to engage in an enterprise which
factor in economic activity is to provide an
example of prices be- is
buried
in
confusion
and
is
lelate
the
currency
supply
to ing determined by the supply of without valid defense.
some index of prices, or of indusgoods on hand and the payment
'
„
..
.
t rial
nroduction
of gioss na
pioduction, or ot gross na- offered and made
01
A su"'ey of evidence should make
onerea
fi.onal

product.
instance
instance

every

done,

finds

one

In
in
in

practically

which
wnicn

this
inis

porting evicence and lack of logic
in analysis. Perhaps the most com-

inonTnm-oacfrto"the"suDDosed

£cts

ihtn^es

of

relates

rurrencv

the

in
to

volume

their

'

of

alleged

*

ationshio to prices

ve

ef-

ciaUy

by

tbe

sampies

the

supply

of

currency

(1)

Currency

has two dimenHons—supply and velocity. It alhas other characteristics which
sometimes vary widely. But con-

no

ity

of

or

a

is

But these

ment
cars

or

flows

IS wfth ^
inrluHlp

o^for

TaS

thP

up

^
f

riirroncv

the

supply.

than

This

was

changes

in

y

case

19.29-1932 for example. One should
deal with currency supply

riever

apart

from

its

velocity—the

pidity with which the
being used
when
—

purchasing
<;an

power.

to

come

of currency

In brief,

in

the

ra-

currency is

considering

The closest

we

a
measure of supply
multiplied by its ve-

time

do

against
Hows like

Pnnd<?

our

'attempting
lpiiityot attempting

to

This

tact

relateThe

to reiaxe tne
to

total flow of payments for

a

day,

week, month, or year, against only
those goods and services whose

on

now

(velocity of de- °f currency is against goods and
deposits)
appears
in
the services produced, priced, and demonthly Federal Reserve Bulletin.■ livered in the past (some foreign),
mand

these

figures

for

among others:
otners:

checks

and

demand

debits

U.

S.

omitted.

rney
They

represent

drawn

against

(b)

Even

against

in

(c) The

purchasing

as

(d)

We have

accounts

use

of time

power

no

data

is
on

f:he

velocity with which money
(metallic and paper) is used, (e)

We

cannot

portion

ported,

determine

what

pro-

of
bank
debits, as reis used for payments for




-

,

-

.

,

expounders

of

"the

,

,

largely produced and priced

soon

iearn

to

do—they

that

the

should

evidence

refutes

ure

For example,

on June 30, 1920,
outside banks is reported

money
as

30>

for

i936>

reported
all

of

total

1926

=

as

100).

On

outside

money

is

$5,222,000,000, deposits
as
$49,832,000,000,

$55,052,000,000. The index

wholesale prices is given

Therefore. if there is

iation

between

*'0Utside

money

deDOsits

0'n

the

sunnlv

banks

the

on

close re-

a

the

and

segregate

those

be able to

reflected in

ticular
woud

our

date
be

or

going

attempting

J

f

•

1

.

subjected

pVidenro
recm:re

one

wi^hes

the

reduced

b

of

to

meas-

other

in

measured

as

to

this

rase

state

index

that

of

deposits,

than

more

money

tQ

half

outside

one

the

indexes of

period,

goocts
goods
a

he

par-

still

the

lack

of

a

Apparently there is

means

the

on

quantity

„

_

are

Thg Board

q£

money

that

by

jug.
they

currency

Governors o£ the

enough experience and
ficient

evidence

rant

statement

by

which

that

Thein

time

tions

stated

in

(U

to

war-

fundamental

they issued at
major conten-

March

13,

1939,

P"ces cannot be

in

respect
close rela¬

the

by which

one

no

that

.

.

tnat

.

.

and

cost

bread

(3)

in

steady

a

prices does

lasting

steady

necessarily
prosperity; and

nearly
as

of

of

average

not

level

people

average

result

(4)
prices

a

is

important to the
fair relationship be-

as

a

which: they must buy."

Sixty-six
declared

monetary

that

harmoney

The

economists

statement to

with

"in

be

it

was
an

Board's

that

or

to

be

be

that

controlled

by
of
as

in 1939. But we are
living
atmosphere of government-

ally-managed
*

economy; and much

n

<,

•

»

u

so-called economics bepropounded is political propaganda

covered,
4

is

able

are
•

t

u

so

t

far

do

to

the

as

reduced "to

clothes."

paper

experiences

fiat

money

Andrew

0f

the

of

during

18th

Dickson

Money

/TA

Con-

white, in

inflation

A—1~4—

i
—

perity (foUowing the initial artistimulation) had steadily diIn

spite

of all the pa-'

commercial
and

more

Enterprise

more

activity

spasmodic.

chilled

was

ness became more and

and

busi-

more

stag-

nant»
T,

n,Ip5reha?less activity besides
™any ,fac'ors which
b si

a

supp'y of currency.

One

can

]°?k at tbe r?cords in country
after)hc0,
ln EuroPe during,
saf> the >ast 50 yaars a"d note that
although expansions and depreciations were great productive aciw/ u1Cl n?+ lncrease
correspondingly but often or usy declined,
,

?

' ,a ,paopl® are 11 ot un"
by the quality of
currency, business expansion

bu'?' disturbed
their

^rid currency expansion may keep
close colT?Pany for the reason that
the business expansion causes
that

expansion.

But

to

con-

aS 'S °ften done these days>
currency

expansion

or

authorities

can

by

Federal

expansion,

gov-

Reserve

will cause busi-

or

to

is

generalize

improperly.
The
Editor of the
Commercial and Financial Chrontele was quite correct
when he
reminded his readers of the conof

sequences

pansion

in

reserves

such

currency ex1930's.
"Excess

in

the

huge amounts " said
he, "accumulated in the 'Thirties.
Governments
were
bid
to

up

prices

that

left

almost

no

yield,

banks either did not think
wise to expand their loans

else

or

there

borrowers."

were

The

drop in prices in the stock

.pot

sharp
market

at the time President Eisenhower
suffered a heart attack
was

not

because there
contraction

had

been

in "the

a

sudden

currency

sup-

ply."
few

samples

relationship

the

of

the

lack

of

changes

between

in

supply (money in
circulation — that is, outstanding
from the issuing authorities—and
deposits in all banks in the United
currency

States) and the index

of industrial

y°?aUt;£i°nin(,?diUStfd £,°Lf fa?"al
variation, indexes for 1935-1939
=

10q)

be

helpful: While the
supply
declined
.2%
June 30, 1926, to June
30,

may

currency

from

$58>44^°00,000to $58,-

311,000,000), the

j

it

propor-

tionately

with

so,

garments rnislabeled
a

are

and

£he

Fiat

^

A

statement

cannot

authors

so

activity stagnates

decade

well-established- enough

principles and with the

changes in the amount of cost
money" is as accurate today
in

pur-

But

facts of monetary history." But today one could readily conclude
that the Board never issued such

"prices

its

o£

last

tury>

currency

become

can

with

France
the

control-ness

s

the amount of money is not
complete and canot be made com-

index

of

mdus-

science.
trial
production
increased
20%
Science in Economics is taking (from 95 to 114). While the
suptremendous.beating at the hands. ly of currency increased 2.7%

of

our

propagandists

mentally-managed

for

govern-

*^11116 30, 1929,

to Dec. 31,

Tom:$58 3111,000,°°°

It is

economy.

to $59,-

frial Toduction declined'"S
declined
12%
(from
114

If the authors of

currency

Omental in science that

ries

of the

curren¬

consulted

'

quantity theotoday

money

evidence

.the

on

get at
the vol-

the supply of currency and prices,
it

c^ose relationship between

should

+h

our

areas

t

be

th

and

the

prices of those goods and services,

quite
_

clear

nnPratinff

to

them

in

the

'
,

indexes

value of

the

get

^ac^c

currency used to purchase
goods and services which en-

present

our

one

accurate

may

the relationship between

ter

brown

ascertain-

Germany in 1920-1923,

cont:ernmental

changes in the amount
of money, (2) the Board

plete;

in

currency

follows-

as

h'.
'
Experience has shown

,

had suf-

a

1939

of

importance

were

easily

power

as

be-

as

currency and

volume of

that1 productive
and
the people

Federal Reserve System had had

a

done

prices,

are

the

the

volume

depreciation in

chasing

relation-

one hand, and
prices on the

of

otheri and second>
gifng the supply of
control prices.

ume of

the

the

the

his evidence before he
generalizes,

considerations

cy supply and prices.
.

and

y

can

be

banks

that

minished.

co

ciose

a

indexes

our

would

if

rices

tionship between

being

tor
for

"

days by our aclmanaged irredeemable
who contend, first of

that there is

d

of

facts

able

great,

re-

same

liciai
P

ship between the volume of
of

and

being

index

The

the

these

currency

all

supply

tween the volume of
some

grew

hardlv

much

is

relationship between

business

issues,

liaxKJllJ

■

vocates of

and

in

unsound ground in
to relate the volume
of payments
being made to the
prices in the index numbers for
on

is

xo

_

of

..

of

course

we

bank

hand

0

of

79.2.

as

by the index of wholesale prices,

particular time and to

a

.

June

banks

banks

Further

the volume of payments

made at

that
lliaL

economic

.

past.
one

..

they

attempt

now

(3) Should

b,|t

not

£nd gainst goods and serliles and deposits of all banks should
^oselriees Ire
^hosf Pnce^ are ouoted now bit b„e„increased by approximately
quoted
but 38%.

those

interbank

cause

from the lack of logic in what

volume

great

reasons,

Government

excluded,

deposits

have

deposits in 344 reporting
only,

centers

and

(a)

drafts

centers

are

these

sistent then the balloon

expands in due

g

ties which they produce and those

Ueposit turnover

But

th

strong

is

the

produc-

t
.

if

to bheck their contentions
against the evidence-quite apart

ices

]fCwi 'a t°hiUSe flfUrif!h °Wi bailH beiCseofalthaf time6 since that "flow
debits. A table
bank debits and oeis oi, tnat time, since" tnat

limitations

close

money

(prices
at

only

currency

stream.

a

our

process

But

or

and

currency

industrial

there

currency

hjs

exist

tween the prices of the commodi-

/
prices

relates

which

related

effect manner.

Were

our economy.
favorable and

flating

shou

ground

$4,105,000,000, deposits of all
fi„P£i
u,,? banks as $35,754,000,000, total; a well-grounded statement
navmpnt
$39,859,000,000.
The
index
of it has been demonstrated
flows
' wholesale prices is given as 167 false.
of

a segment of our goods and serv-

ices

cur-

calcu-

be

any

sink

even

the

in

quantity theory" of the value of

nf

n

Nn

index for

an

particular

a

in

not

nu^ them*

houses

L.
nrit^'

J tnP

sometimes

Pay~

for example, for freight
locomotives
produced,

prpHjt

th^v

partial

in

of

commonly

should

prices

and

sam^

services for which curshll

to

.these sam-

.

important

more

of
—

the supply

as

lated,

collected

SleS ai;e of 1cu/rent PrlceS- Th/y
j1
include past pnees for

decrease in the veloc-

currency

prices

ll?m umc eU

f'ining ourselves to these two, the
increase

abstractions

0f

rency,

These

numers

from Ume tQ time

g0°ds

should not be related directly
to prices.

offi-

measured

are

index

mathematical

are

rency

Why

automobiles,

clear why

Prices

■(b)

is
is

absence of sup-

an

into
are

one

Port,°" tbeir volume of deposits

weeks

of

Wrjting

may

can

decisions, gifts for past favors, and

£

payments

anP b^rvices

ds

canvas

theory
the value
on®prices Se°7 of to whiCh of monfy.°l
0t',the
°£ money of
the type
being

rt1

M

might

Hpnrpssion

direct bearing on prices
bearing

reasons:

is injected. And

gas

perhaps not at allL
period of time The

or

canvas

-_

spent

is

epi-

considerable

obvious

__

that

money
m

__

these

slowly
a

out-

papci

as

penetrate, the

_

hping
only
sold
at that
selvlrel' being''sold"at°that ^at oru\
Qnly
for several
(a) some have any

priced

of

realism."
It

go »

to

common

monpv

?nd
^ 1S. difficult or
impossible to determine what that
bearing is.
Bank deposits represent possible
currency which is not in use.
Those are the deposits which are
in the banks when the banks re"

£

since

are

But, by all means, let's have

come.

When

to

to prices

A

in

German

that

should the gas find holes in which

with, another

rpfpr

of currency into
did Germany, for

That

of
of

study of evidence should

lack

pump

SOmethat

was

sometime

attempts

A
veal

to

analogous to
the inflation of a big balloon by
pumping gas into it. The canvas
may
be fiat on the ground for

'

^emnUies

have

r.ime

irx

sode

currency

manner

volume

relationship.

our

money leaves banks, we lose track
We do not know whether it
is being hoarded or spent; and we
how
rapidly lt 1S

.

time

some

of

in

confronted

are

cpvuippg

and

two
two.

employed

ie

adpnuate data

navments

in-

often

supply

peculiar phenomenon.

?11 the
"f
L' i r
fmiuoH t
nf all is there much
by people at a particular time we
time, we
™
excuse for
"that still could not rotate these paymerely assuming that stm couia not, relate
roine
casual
relationship
exists ments closely to prices of goods
complex

the

As

T->itfa11<;

used.

are

,-f

But

too many

(4)

we

they
f

far

are

common

relate it in

the

in

complex
than
discussions reveal.

prices

example, during and after World
War if prices tend in due course
to respond in some manner though
not jn any close cause and effect

a

as

more

to

roughly indicative in
;fo
P
jnfnnic

for

the

to

continues

tne economy, as

automobiles.

much

aggre-

as

bank

use

established

deposits

nation

a

^ huge

the

at

prices

to

if

making and the relationof
purchasing
power
to
at
a
particular time are

debits

to

:,

comparing total 'money supply
changes
in
the
business
too

Price

sold

are

period of time

of

we

than

sale

prices

case

goods and services,
cannot come closer

probably

in

with

and

asking
the

goods

wish

we

a

for

bank

index
tion.

in these indexes.

con-

exceedingly comlarge portion of goods

considerable

an-

ff^^ct lo^he making 0^"^-

were

...

be clear

if

kn0

^

weather.

for

payment
pay

N„,,prtheless ,.
Ne

realistic and practical way

more

a

without
mtnoui

to

Hniru? with their
currency

mimlirUonately or'else Ihe^e
■Luirrt

offered

transfers

bank

one

affecting

often

plex. And

propor-

merely

and

ships

tha

Piices

enough

what

Govern

.

not

constitutes

deposits from

other
other

yield. But banks

no

less

.

wa
_

to

easy

and

—

factors

buyers and sellers. The

affecting
the
determination of asking prices are end-

services—past, present,

future

and

both

siderations

Thursday, December 27, 195S

supply

basis for attempting to relate the
supply of money outside banks

psychological

Supply of Currency
And Economic Activity

The

proper

the supply of
goods offered and priced and the

...

°f

...

imagination

thinking, not fact.

.

or

,

,

.

wishful
'

to
100).
While
supply
increased

the

9%

froZ ^3^00^°:

243,000,000), the index
—,—,,

—
of Industrial production
increased approx-

^ately 1 %
,

freas?d

b

G/

^

(from 78 to 79).
currency supply in-

June
1937,
to June ^0, 1939 (from $59,734,000,000 to $63,840,000,000), the index

of

industrial

production

fell

i

Number 5598

Volume 184

The Commercial and Financial Chronicle

...

(2813)

While the 1923 had used figures on gross ing Act of 1935 were held that
supply increased 132% national product, as we use them year,
Eccles
propounded
the
from June 30,1941, to June 30,1945 today,
the figures should
have Currie income-velocity theory for
(from $76,784,000,000 to $177,779,- been fantastically high, particu¬ the benefit of Congress.
(Hear000,000), the index of industrial larly during 1920-1923, when that ings
before
the
Committee
on
production increased 39% (from currency expansion and its depre¬ Banking and Currency, House of
ciation weie reaching their most
159 to 220).
Representatives, on Banking Act
The
frequently-advanced con¬ extreme levels at which time the of 1935, February-April, 1935, p.
tention these days that we should Germans were being reduced to
16%

(from 119 to 103).

currency

have

„

increase in industrial

an

tivity

approximately 3% per
and that to obtain it we
of

year

should

have
in

crease

of data

as

such

available

evidence

to deter

consider¬

seem

War

a

popular (and

our

and

more

supply

more

in

currency

nation.

The

rency

national
these

of

national

gross

national

It is

ing

and. the

currency

product

and

income.

which

leads

one

of

some

our
re¬

national

the

supply

The

of currency.

net

business

which

income

factors besides

many

income

of

a

have no
close relationship to the supply of
currency.
And that may be true
of private enterprises in general
at various times.

may

For example, at

the peak of a business expansion,

just before
cession

general business

a

gets

under

in

the

the

way,

re¬

cur¬

supply
may
be
greatly
expanded as compared with some

not

the

properly
a

na¬

peace,

"

Spending
pose,

matter how

no

and

concepts

of

magnify

to

including

investment,

that

operating

produce
basic

The

—

—

facfc

irre¬

Keynesian

how

concepts

the

banks

to

prosperity."

savings

despite

of

are

to

as

commercial

on

fractional

a

system Pan extend

reserve

or

use

currency

"economic

pur¬

wasteful

the

activities,

any

credit

far

beyond any savings in their
possession—constitute the frame¬
work

which

on

nationaU.product

gross

ricated.
For

rency

figures

our

fab¬

are

the

that

assume

desires.

theory,

of

those

increase

ans

who

in

our

spend.

$3

From

that

other,
grip

has

on

the

college

prices.

concepts involved

in gross
national product and national in¬
come

in

tional

the

not

are

private

as
profit
Gross na¬

same

enterprise.

product

is,
briefly,
in
estimated
national

the

concept,
output

for

valued

in

period,

a

should

rency

*

The

terms

say,

year,

a

of market prices;

gressively,
helpful to
the

.he

from

30,

1939

point

(from

of

production.
,

One

$63,840,000,000),.. the increase in
figures
on,
gross
national

product

practically

was

in

becomes

intricate

concepts and statisti¬
techniques
when
he
deals
gross
national product or

cal

with

national

income.

will suffice for
to

involved

But

our

perhaps

here

purposes

point out that figures

on

it

gross

national product include

expendi¬
for war, waste, and destruc¬
that they reflect a depre¬

tures

tion,

ciation
of

in

the

that

the

power

involved,

currency

such

sarily

purchasing

figures

not

are

and

neces¬

of economic well-

a measure

Still further, in their pro¬
duction, estimates, guesses, and
extrapolations are made in many
being.

where the evidence required

areas

is not

available, and then adjust¬

ments

made

are

balance

sheets

called

Nevertheless,
there appears

to

duced

produce
for

in

this

to be

a

the

regard

country,
strong ten¬

figures

measure¬

production,
well-being.
And it

seems

taken for

many

ures

for

that

an

means

well-being.
the

to

be

to

in

figures
national

supply

national

gross

the

no¬

widespread that

currency

panded,

product

the

Still further,

seems

be

expand,

is

ex¬

product

which

often,

probably commonly, is true, and
that, since the gross national prod¬
uct
figures are larger, the na¬
tional

well-beiing

has

increased

correspondingly.
We

should

fact

that

and

after

if

be

the

World

currency

sup¬

from

cent

per

textbooks

eminent

Germans

War I

by

during

and




the

up

to

in

called

those

of

destructive
often

—

investment

government

disarm
and

regardless

involved

opposed

to

to

waste

profligate government spendis approved and praised. It

ing

—

other forces unchanged,

means,

expansion in the figures
national

an

gross

on

product;

and an expansion in gross national product
is,
apparently, generally regarded as
good irrespective of
waste, destruction, and the depreciation in
the purchasing power of our currency.

ures

on

ballooning of the fig-

an

national product is

gross

increase in

revealing

as

economic well-

our

being, there is in this connection
strong pressure for
in

the

rency.
The

steady m-

a

supply

of

our

cur-

ready and uncritical

accep-

tance

of
our
statistics on
grocs
national product and of the infer-

commonly drawn

ences

to how

as

they reveal the state of'our wellbeing is

of the genuinely bad

one

manifestations

Similarly,
of the
to

prices

of

the

value

which
roots

of

quantity

utterly

theory

activity,
has

its

fallacious

expounded

corrupted practically all

if there is

any

$213,400,000,000)
important

of

in

the

hooks
books

the

1930's,

early

a

of

run

sist

in

lationshio
i a lion snip

times

rency

the. "investment"

sometimes

tiplier)
try,

a

velocity,
mul¬

common

being that for

form of the theory

dollar spent

^very

national income^could be expected
increase

to

to3$3.

pounded such

a

it the investment

national

3.

His

ex¬

would

income

for

—

invested,
be

in¬

by some multiple such

as

spending* for "investment"
stretched

soon

was

multiplier

of^ income

dollar

every

Keynes

concept. He called

by

Key-

our

nesians to mean-.spending "for any¬

Spending, became a virtue,
saving
antisocial,
and
spending

porting
tional

our

basic framework sup¬

figures

product,

on

gross

na¬

Currie, in his Supply
and
Control
of
Money
in
the
United States (Harvard University

1934),
expounded the concept of income
Cambridge,

Press,

Mass.,

velocity in which he alleged,
that

as

the-currency

supply

p.

6,

ex¬

national income was in¬
creased, for the years 1921-1929,
by multiples ranging from 2.58 to
the

average

precisely 3.
Currie

later

at

Board
and

becamfe

Eccles

in

when

almost

being

a

in *the

the

tutor

Treasury and

Federal

respect

to

hearings

of Mar-

Reserve

this concept;
on

the

Ban^c-

recurlux

productive

or

national product.

or gross

few
authors
and shown the

have
falla-

exchange. Wesley Mitchell did
something of a job on it in his
Business

natural

Its

(National

Setting

1927),

Research,

of

Bureau

which

and

ers

pound

^in^ *his^

produced

methods, appear
indPPd

fp«,

tew

scien¬

by

be rela-

to

nrefer

Wp

inaeem

labels, slogans, statistical monstrosities, and
fact-gathering
superficiality
to
and
generalizations based
upon
popular

evidence.

tical

current

and

We

nonsense

direction
f°r

we

cherish
if

it

think

our

points
we

The
of

the

in

the

increases

^er*sR

the

expansion

as

greater economic
In

the

rience
sense

of

our

cur-

supply since both are wide—

regarded

ly

light

and

of

orders .and

new

indications
wellbeing.

of

of common expelogic, our present

of euphoria can be

expected

.

,

.

of the

past.

-

production decidedly down and

23rd

National

"Bulletin"

Association

of

Purchasing Agents, which reflects
the composite opinion of the
purchasing
agents
comprising
the
NAPA

Business

ceived

at

prices.

less

than

There

apparently, a
growing resistance to price increases and a general feeling that,
in

order

avoid

to

have

Ogden of the Detroit Edison Com-

a

material costs with

states:

pany,

"The

over-all

optimism of purchasing
executives,
concerning the business outlook

"established"

is,

Survey Committee, whose Chairman is Chester F.

1957

squeeze

on

profits, business is going to
to

offset

higher

labor

more

and

efficient

operations,
T

1957, is sorhewhat offset by a
postelection lull in current condi-

been

.

clining

tions."

,

inventories

1

.

for

Continuing
points

the NAPA Bulletin

'"'the

out,

cember

reports

business

De-

on

further

substan-

A

marked

reversal

of

the

de-

inventory trend, that has
prevailing for the past sev-

era* months, appears in the De¬
cember reports. Where only 17%
inventories

reported

in

up

No-

vember, 30% indicate higher inventories this month. With prosituation. However, this year-end
Auction and new orders off, it is
dip has not dampened the general logical to expect that deliveries
optimism for 1957. Some 34% of 011 previous commitments would
those who
answered our special
temporarily build up inventories,
iast

month's

thusiasm for

the

tempered

question about

survey

en-

present business

1957

pros-

rmninvmonf

employment

pects say they think the first six
will

be

corresponding
5%

higher
1956

it lower. An

see

than

level.

the

Only

greater

even

number, 42%, think the full year
0f 1957 will surpass the year now
closing. However, 15%" are/less
optimistic and predict a poorer
do

ers

in

.

The remaining reportanticipate any differ-

not

in the two years.

ence

instances,

many

thiiS

bright picture is

concern

the

0Ver

situation

the

an
construction

tight

in

...

Ji.

in
the

Buying
Last

month's

warrf

view-

in

f

December

J nLVJhtr

^Plthei confirmation m December,
Over one-third of the members

are now in this range—
since Mav
1955

highest reported

Ia£"e&l ie£01*ea Mn<fe lviay>

in

iH

N

a,

anwn

7

t

invontorio*

ana

January

reported

nn

have

1954

situation.

order

new

tupjr

lower

better

is

as

production,

iower

port

ed t0 8%

%

are

Qf

say

com-

hand

Qn
.

iti

.

re-

Qnl

mem_

17%

„

ma_

were

.

.

their

Forward buying

upward

creased buyer resistance to price
Lead time

on

new

commitments

continues its trend toward

as

basis>

weil_

"in w ib

With

yvuu

a
few

a

Cw wcix-

are generally in ample

PI y'

....

,

Employment remains high and

There

they

require 120

now

rnmmnrfitv

chants

is

much

less

reported

changes this
than for some
much better
and demand

On the

up side are: Nickel, steel
methanol, dyestuffs, paper,

scrap,

sugar, vegetable oils, coal, fuel oil,
asphalt, sand and abra-

slvesOn

Commodity

upward>
that

but

In

started

in

reoort

nrice

month"since

Some

are:

supply

are:

Nickel,

sh^;

pipe and tube), and cellophane.
'

i

a

G.

Leavitt

securities

at 36

w

»

Furthermore, there are evidences
that, in specific commodities
where capacity is in excess of demand, quotations are being re-

V

M

a

•

•

IVl&inicro

•

Anthony
ductlng

engaging in
from

New

offices

York Citv

btreet, New York City.

u

increases

last June.

is

business

d ctreet

is

agajn refiected this month. Fewer
in any

side

(p]ate>

Ezra

leveling

October

down

items, +in and ilirnhpP
tin anH lumber.

short

^

Prices

the

the

rnnnpr
copper

E. G. Leavitt Opens

The general price movement is

San

ex-

relationships.

steady,

members

say

emphasis on price
month, either way,
time, indicating a
balance in supply

^cognized shortages still evident,

trend

66%

snerifir

hand-

™,nnlv

capital

on

rubber,

increases.

to_mouth

less

0

or more days.

reduced rate,

a

*•

SpeClf,C Commod"y Changes

in November.

continue

within

lvs,

Penditures continues to lengthen,

com-

hased

Jf

Prices

as

ti

our
more

_

present

P

requirements

fh_n

significantly.

up

the

u1 MR°.ltems' 92 % are buying

sucb

jn November.

inventories
.

into

^ponents
cumpuoeins.

~

new

position and only 24%
situation

39% last month. 18%

p

so

the

in

buying policy categories

separated

Production,

this

reflects

course

order

decline

a

were

de_

since Januaiy iya7> nave so

many

Qf

figures, which show

^ prc;duction

Qrders

m

ran^

30-day range in buying

?•

Polnt expressed is in conflict with when the

new

Policy

reported shift to-

^

reporting

.

long-range optimistic

®

tives believe that employment has
reached a stable level and no
significant change either up or
down is expected in the near
future,

by

The
deJ^e

.

Th

n„j.^v

relatively small number,
reporting e m p 1 o y m e n t
greater this month is about equal
to those reporting it as less. In
general, most purchasing execu-

prob-

money

particularly

fie"d

housing

The

17%,

however,

clouded

international

ex»ected

ancj

gtin

ligures on gross national product
and

show

December

the

wish to go

.examPle, we seemto

especially

statis-

limbo

some

and there is much evidence of in-

...

sound logic and upon

upon

evidence

tific

doc¬

precipi-

,

readjustments which

optimists still insist belong to

<>ur

un-

are

.

bating

to

monetary

our

managers

„

•

,

.

the

ex¬

...

.

economic

our

movement—but at

form.

some

Generalizations

based

to

Fisher

the fallacious

in

trine

continue

others

and fiscal

inventories up.

128-139
but a large
our textbook writ-

pp.

—j

needed

i

York

New

t°

general optimism for 1957, but incongruously, this
viewpoint is reported to be in conflict with December figures

proportion of
—

and

agents'

Cycles. The Problem an

Econom'c

rency

.■».

per-

of

panded

3.26,

auantitv of
quantity ox

prices,

time with the fact that forces be-

yond the control of

About 1957 Business Outlook

cies in Fisher's so-called equation

lively

Lauchlin

who

alleged

some

of the
oi iric

penetrated

,miv

n

the gen-

on

writers

our

are

de-

Year-end dip found not to have dampened
reporting purchasing

and
a

text-

our

Relatively

thing.

became the

firm grip

to

activity,

broke loose in this coun¬

nermeated
pe
eat

stressing

income-multiplier concept (some¬

called,, ..income

has
nas

1911),

Fconomics ihas obviouseconomics, |na
dv o

on
on

ly taken
eral

accuracy

figures.

in

Back

—

degree

latter

the

Co., New York,

which
wnicn

and
and

in

our

Purchasing Agents Optimistic

total year.

related

as

economic

exchange

of

times.

ordinarily

the

equation

these

money

and

theory
in

forces

months

,

a

——

tiate

Since the

cent

to

healthy

Economics

Heavy gov-

how

or

activities

Our

lies

Such

country.

on

Macmillan

riner

warned

nation.

spending,

wasteful

the

and

attitude

currency. On the
those who have that
attitude may be confronted in due

progressive

terminate and to squeeze out
—

an¬

the -figure
on
gross
national product increased 70 per
$125,300,000,000

our

readjustment

proper

unshakable

an

this

of

or

by Irving Fisher in his book,
Purchasing Power of Money (The

(from

of

this

of

power

or

currency

in

Con¬

30, 1941, to June 30, 1945
(from $76,784,000,000 to $177,779,-

000,000),

currency,
a

strong

present,

government

^

in

increase

to

people

changing fig¬

national

gross

increase
an

national

or

granted by

who comment upon

tends

pro¬

of economic activity or na¬

tional

if

the

by

zero

$90,400,-

to

June

creased

highly accurate

as

ments

tion

the

employed.

concepts

dency

to

$9O,2O0,OQp,OOO

increased 132

ply

quickly

to

the

000,000). When the

factors

while

$59,734,000,000

(from

the

that

be

supply
increased
$0, 1937, to June

June

product

to

pro¬

might

it

out

national income is the net national

paid

the

form

saturated with it.

are

cur¬

expanded

perhaps

currency

7%

to

one

had

our

people

that, therefore, the supply of

asking

time

doctrine, in

proached

supply-increases the fig¬
national product in
closely related manner and

our

depreciation

only spend this nation
into prosperity.
that

that

other hand,

of

both. The desires for

pro¬

national income.

of

crease

overtaken

supposed to

was

In

system.

depreciation

gress could

a

or

this
pro-

economic

an

powerful force pointing toward a
further decline in the purchasing

Every dollar spent by the

ures

some

to

suddenly

was

and

government

vide

currency

gross

to

expounded by several influential
Keynesians, Con¬
gress
could
not
afford
not
.to

preceding period, but profits mar¬
gins may be contracting or dis¬
appearing because costs have ap¬

on

According

which

pounded

commonly advertised

benefit

in

any

theory that conformed

a

their

for

.

either

were

how

for almost

destructive,

that

conditions

converse

Keynesian

profit

or

enterprise

contract

is less well oif than it is

currency,

when

such

and

of

avoiding
destruction, and oper¬
with a kmnd and honest

deemable

uct

and

and

to

comprehend

to

demonstrate that

living

late the

quantity of our currency
figures on gross national prod¬

1944

end

crash, when costs finally overtake
selling prices in areas of strategic
importance, or in a progressive

C1oV2rJ,her?i°ri,th,,fTr»LrSt„°l Preciat'on *s rde'y
Congress
thus
presented be preferable to

national product.

may

prevail.

quantity-of-money theorists to

in

Elimination

tends

gross

or

tion

peculiar brand of think¬

a

re¬

was

a

product.

on

allege
waste

'

World

1946.

forces

ating
-

higher

gross

on

peace

by

.War, waste, de¬
depreciating cur¬
expand the figures on gross

Surely

this

warned

during

after

1945 than in

quantity of money theorists—
they carry on their agitation

for

be

figures

our

were

figures

on

bread

with

product
and

stored

brown

also

that

II

these subjects—

other) writers
as

should

struction, and

able number of

our

We

"of

clothes."

national

given above and the facts
and effect relationships

does not

and paper

the fact

reveal.

But

standard

in¬

cause

should

the

supply has no
the few samples

corresponding

a

currency

validity in fact
of

ac¬

to

21

V.

r\

Upcns

Mainiero

is

con-

securities business from

omces at 39 Broaaway, JNew YorK
City.

112

The Commercial and Financial Chronicle

(2814)

Continued from

first

and

\

there

which

little

be

can

dispute among

and

informed and

sound basis for lack of con¬

a

basis of faith

the

what

in

Middle
of

set

to

seem

East

elsewhere

or

substance in

our

ferent

calls

world

for

situation

has

been

somehow

discretion

and

until

the

time

miles

from

professed interests,
tional

world

as

our

border

own

interests

or

defined

are

our

in

known

as

jumble

determination to succeed, coupled with
should bring results in time.

as

end

in

1945,

we

were

The

war.

net result would be

But

of

fully

as

climate

a

so

a

which

productive activity.

the

the

with

sity—ready in the
of, it and

try

a

which

merely

a

burdens

sense

of having an economy

IL

defense

The

these
in

are

any

the

thpir
tneir

greatly

talent<?
a ents

ducer

international agencies

one or

active.

an¬

Mostly

and friction

go

"sour"

no

very

sooner

or

sound economic
later and

leave

instead of the constructive achieve¬

ments

-

they were designed to accomplish. / International
-flow of investment funds had
best be left to




private busi¬

concept

clashing with

nf

rnmnpfitivp
competitive

and
ana

—

dising-

cpppqc

success.

turn,

in

pffppfivpeffective

strengthened by the
of
01

resource
esoiuces

the
tne

nro-

pio

in

advertising, merchantraining in sales and in

Piiarnntpp?

anr-p

in

anH

thn

Together,
which

they
its

constitute

pits

nhar

team

a

combined

talents

against other similar 'te'ams that
likewise are seeking to win the
patronage and loyalty of the conThus

sumer.

there

is

a

brought to
marketplace of contremendous dynamic

competiti've

force. Contrast it with

bear

in

the

sumption
Mr

'

Jones'

and

other

about

it

industry

into

because

consumers

qi

oil

dynamic

up

put

'.
industry

,

tne

in

suddenly

distribution

the

it

came

desires

of

themselves.

n

n

••5

•«

MOCKing une Brand

Very quickly,
history.
By the

place

a

acces-

they

The

obvious.
Services are
wit!> the. sale of gaso-

andjil. These productslikeare
Services

put im the car

are

connected

wise

TBA.

with

the

These products

are

sale

of

were

who

"

filter, connecting
connecting
service sta

battery,

new

o.Puttinganew■tire
The

hatterv

new

a

the

on

offered

ion

of the

agencies and it is

that

we

rim.

an

gXr

are

let's

..

trace

the

early

1930's, it
was apparent to
practically everyone in the oil
industry that motorists preferred to buy gasoline at

l

,

natural
,

j

,ia

,

should

fall

^vnamjc

then

f'

.

T

a

rope

the

into

TBA

:?

^

of

pattern

distribution

that

had

,v
l,
f
developed for petroleum products,
,

j

.

.

brought

the

f: OIUU&ru
the

ine same

benefits

ueneius

to

10

consumer and to dealer. Both
because the TBA products

^

7.7;;

identified with
«asoijne

ot

,

same

were

piuoucij

any one brand of
longer objects

no

w.exe
" /
Passive interest to the producer

\*?at brand of gasoline. Their

quality and

became matters

price

of the brandConseauences of New Distribution

^nseciuences of New Distribution
s 1 see
impor'3"t

their

js

^hat

those

feClt%^tred°rigjhaltPaCkathe'tThey
that they
got

what

Sin. f
oline, as

they
a

k

m

bulk

of

consequences

wanted

and

e "a .rn
liquid, the
,

paid

competition in the sale of
TBA

products

which

are

JI^J
d'vided,

kH|d

of

Next,

the

success

consistent

oreanizations
m 0 s

t,

g

w

h i

I

„

of

the

.

•

"one-

:the
and

rantrih.it^

h

r

effectivelv

to

economic

^ Welfare

hesavs

We

must

fresh aooroach to

a

^ncVpfot ^l.y SuTcom!
Petition. What he is saying is that
need

we

theori

tQ

[

*lassicat

the

cg

under

whjch

M

Jones,

stQre

competition.

am sure we can

oping the
titinn

help in devel_
theory of compe-

new
in

rw

thn

tition—not in the narrow sense of
what is "good business" but in the
nf

Qpncp

ho*t

Spnr;n«

niir

sense ot best serving our great
industrial economy. But that is a
+

undenting

in

long-term undertaking
businessmen can play
Frnnnmict.?

Pait-

1pwvpv«

Economists,

noPMeitv

us

nnd

lawyeis
and
administrators must

government
nf

whinh

wbicfi
only one
in

matters

niav

tiiP

maiftr

toIp

ot necessity play the ma.101 role.
Meantime, the confusion gives
for

immediate

more

v|des opportunity for those who
a tack ,us }.° pr?.y ypor\
eT

resent a forceful, beneficial competition which older classical tests
of

competition do not

let

alone

the

detect,

the

older

as

by

even

Yet

measure.

structure to which

item

is

manu-

supplying

com-

pany; or bought, warehoused, resold and delivered by the supplying company; or sponsored through
brand association by the supplying company—I believe the effect
in

intensifying competition in the

marketplace is the

The

second

same.

concepts remain

important

maybe

the

even

is—or

should

handled

Next

J

seriously

doubt that I have
anything new to you.
My
in reciting these things

is

to draw

the issue

on

the

prob-

the

seive

purpose

socially

better?

must be certain in the

we

essential Tightness of our own beliefs

about6

belipve

a.?

T

competition.
do

competition is

pUrpOSe

and

instru-

The question
be—does the long-

spade

llahod

said

better

ment is the kadalie.

in selling TBA that he had in sell-

- advantages in adsupport, merchandising,

ideological

textbooks

lawbooks-r-say the

desirable

conse-

an

as

our critics cling
they shout accusingly that we
are
using a ,long-handled, spade
when custom and tradition—and

T*?™gained the same
iS- ^4^ serv^e station
dealer
advantages
vertising

The began
split-

with

relations

busincss

TBA

g/?S~ mg..gasoline
entire

station

rapidly to disappear.

;

$
competition

the

thinS LP .nl S6 en.veloped
is lr !? .2 ?^
products identification.
»

cow.

policy in the interest of

Whether

management,
c,edit, assurance of supply, pere^ery" formance guarantees and brand

nn

a

understanding it breeds
I bethe dynamic
distribution
the practices of the oil industry rep-

th,%.pa,9k- training, inventory

mm

lest

or

sponsored by supplying companies
has
been
greatly intensified,

prod-

felt assured, in that
way,

farmer7

there have been two lieve

"»

u

wanted

the

as

because they attention.
wer® a part of the total biand
Better comnetition
Package — capable, through assoA Better competition .
ciati°n. of enhancing or damaging
Let us first recognize that the
attractiveness and reputation confusion exists, and that it pro-

,

They

wonder

sometimes

concerm

competition.

scious.

enforce¬

no

our

antitrust

shoe

that
'

and

„offrPf-S £°r fn
earnest
effort
to
re-think

in-

tt'TSxihal handled °n!y 0ne
f.or the consumer, there is no
American people were better protection than intense
,n8 »'nereasingly brand con•

courts

businessmen

befuddled

as

found

competent servlce"

TBA!

„

modr

who stood in the pasture and tried
to remember whether he had
just?

installed

in or on the car. As the automobile grew more complex, the fewer
the hardy souls there

supplement it,

bought

o

is

it,

factured

effect,

ot

or

such

come

policy that,

ment

way TBA distribution has developed in the oil industry. The first

shoe store!
.

one

national

it and regulate it.
Add to
that the multitudinous interpreta¬

apparent.

demonstrating

automotive

the

brand" of direct

acter and reputation of the

in

tions

'

largely loans by the people of the United States
But experience
clearly shows that most

basis,^ and that they
will

thnir

event.

of the advances of this sort
have

ill

now

his

operates

reality!

o£ desirable

pro-

at

mnnappmpnt

nf

line
-

business management; in
perform-

n

through the instrumentality of

f

reason

becom-

in

merchants,

find

capable

usefulness of government loans or
governmentloans is definitely limited. This is true also

of

retail

tnougnt

sponsored
other

mipstinn

n

ness

h

■of loans made

thn

in

neces¬

Usefulness Limited
The

the

means

iaigely a question ot their

than

measure.

it

erate

its price.

allies,

every

the

of

^
^ management of
businesses, for his success is

Hrfjplv

public policies which directly or
indirectly are
helpful or harmful .to the spirit of enterprise and the
capacity to be productive. A sound economy at home is
a

•

their

all those

as

ckillprl

to

connection

in

course

such

offers

in

desirable

command to assist them
jn«

matter of avoiding placing
crushing armament
upon the people.
It is rather the sum total of

importance

who

to join
everything

quality

rendered

Finding
ducer

people productive enough for it—is the coun¬
will demand respect from all.
This is not

of first rate

allies

are eager

the

and

~™erted

retail

its availability, its
the reliability of its

it, and of

any

of

were

at

sories

What the

are

became

their gasoline and motor oil.
gj

who

it

product

consumer

services

maintenance

case

station

Motorists

the

in

making

performance

encourages economic progress and
A country ready to produce arma¬

ment in almost astronomical amounts in
the

in

that

convenience,

people that the

careful

old

new

maintain

strong desire to obtain automotive

vital inter-

a

with

seeks

him

about

quite the opposite of what is intended.

important is

stop"

.

merchants

associatedI

with

universally recognized

v/eaken

the

his product, who

conduct of
burden of modern armament is
heavy.

Carried to extremes it could

in

producer

greatest destructive force in the world. The de¬
velopment of atomic fission and fusion has changed many

all-out

Interest

share his faith and enthusiasm

the

more

producer

-Merchant

...

icesi

colonialism.

things, but it has not altered the fact that
armament in being is essential to successful

because

interpretation of
"competition." A matter

confusion

.

The

that

including
enforcement,

unrealistic

the

the

study the

argues

policy,

whatever it is that competition is
supposed to be, we have laws to

his product and Provide the serv-

conven¬

in hand. We had none of these things
when Japan struck at Pearl
Harbor, yet when the war
an

purchaser.

The producer has

purpose

to

its

est

own

ability to defend ourselves is not merely a matter
having more soldiers, more guns, better guns, more
or better
planes, more or better ships, or even more or
better atomic weapons, as
important as such things are

came

of

,

-

of

the

to

He

the term

services

The

for

Laws.

legislation and

Producers

The point we are raising is not
maintaining such bases or of taking active
parts in this and that area. It is certainly not to imply
that we have any concealed or ulterior motives in what
we are
doing. It is merely to say that it is inevitable that
the rules of traditional world politics will be
applied by
many peoples of the world in interpreting us and our
programs. There is in a certain sense, therefore, a solid
basis for foreign suspicion of us —
particularly among
those peoples who have been in active
competition with
other imperialists throughout the centuries or else have
now

Committee

Antitrust

an

v

politics.

been the victims of what is

National

Eisenhower

a

a

the
Pro¬

the

on

sense,

ques¬

of

Griffin's keen insight into
problem
has
been
further
sharpened through his member¬
ship on the Attorney General's

cer¬

is

stands behind his product to maintain the integrity of his brand.

the wisdom of

•

the

this

issue

current

"Harvard Business Review."

Competition
To Maintain Dynamic Growth

to the

,

of

which

explores

the

in

fessor

New Process of

.stand suspect

thousands

by

Michigan,

both

for

up

University

of

tion

antitrust

.

face

must

we

tasks

j.

Clare
E.
Griffin, who is the
Fred M. Taylor Professor of Busi¬
ness Economics at the

It

evolved.

in

fact we
in the eyes of such countries as Russia and
China and without doubt will remain so as long as we
.ring them with bases, and so long as wc undertake
an active role in the affairs of nations and
peoples many
same

less

com¬

Re-Think Antitrust Policy

by pouring out
more or

con¬

isn't,

or

petition.

re¬

Continued from page 10

Suspect, Too
At

world

is,

Out of this clash has

entering into any broad
agreement with Russia on China where our safety would
be impaired by treachery on the part of those with whom
we
made bargains.
1
care

the

serve

and the older

our

good hard

dif¬

a

in

effectively to

what

good will and

very

world—unless and

excellent

of

Administration is faced, and the remainder of the world
is faced for that
matter, are thus seen to be extremely
difficult. There is no
ready-made solution for them. But

question suggestions, implied if not expressly
stated, that we abandon a number of bases we now hold
parts of the

when

typical generosity is

international

It calls into

various

occasions

There may well be some such

existing today. The good results to be obtained
however, are obviously — obvious from the

The

definite limitations
upon the extent of any disarmament which we could
afford to undertake in the circumstances now existing.

in

been

tain to fail for the most
part, leaving hard feelings in the
end rather than
good will and a basis for peace and free¬
dom in the world.

rulers of these' land's

the

now.

would;

have

cepts

history of such matters—far less than is apparently sup¬
posed in many quarters. Effort to fill "vacuums" in the

is giving hostages to fate. We made such a mistake
with respect to Japan a decade or two ago. We could
hardly be expected to fall into a similar error in other

This

of

more

the consumer,

in this way,

sav

cases

There

situations

This
particularly true of Soviet Russia and Communist
China.
The only possible way in which confidence in
these countries can be nurtured is for them to begin to
establish a record of keeping their word. On the record
th -ir word is worthless, and any country which proceeds
agreement of some nations.

or

is

on

wisdom

peting

outright gifts, their success
making them varies with circum¬

sults have been obtained.

is, first of all,

There

the

stances.

dispassionate persons.
fidence in the word

1cm I referred to at the outset—
the problem of the clash
between
the realities of progress in com¬

making certain,

business gets a square deal.
As to grants-in-aid or

See
We

As

with government taking care not to get in the way
so far as that is feasible, that private

ness,

page

.Thursday, December 27, 1956

..

glorified

serve

only

in

it<?

whose

von

'not

If

you

believe

that

an

own

end to be

ri^ht

but

a

sXe p^ose

is to
the interests of people-not
now
but
in
tbe
future

through the constant pressure for
inventiveness and progress that it

brings t0 bear.
something that
at any moment

methods

as

It

is

can

not

static-

be measured

by such statistical

counting the number
sellers—but is dy-

of buyers and

namic and subject more to meas-

Volume 184

urement in

Number 5598

The Commercial and Financial Chronicle

...

(2815)

of performance

terms

National

and result.

last

Finally,

must be aware that

we

of

some

the

News About Banks

misunder¬

gravest

standing growing out of the con¬

flicting
exists

which

lead

to

competitive,
tion.

In

own

charges

getting

The
of

standing

ney

are

the part of those who

allies

our

in

the

competitive

battle for customers.

properly

interpreted

intent

or

have

We have not

to

them,

action

our

perhaps we
to develop
understanding among

complete

or

neglected

even

the members of

our

market¬

own

ing organization.
In

less than

no

First

City

Bank

has

appointed Sid¬
DaCosta
an
Assistant

A.

Manager

Advertising and Phi¬
Hoadley an Assistant
Manager—Public Relations. Both
lemon

—

N.

members

are

tions

of

the

Public

duties

DaCosta's
with

cerned

local

are

bank's

the

advertising,

Hoadley's

duties

Davis, Marion M. Puvogel, Dorothy E. Finigan, Margaret
F. McGrath, Lillian M. Nitzsche,
Hazel
I. Ruschelau,
Dorothy M.
Noble and Mary H. Henderson.

con¬

national

while

Mr.

with

the

are

bank's television and promotional

opportunity
problems as

#

jjc

Arthur

S.

York

City,

bank's

to

generate

win

to

as

un¬

derstanding and appreciation. Mu¬
tual trust and respect are as es¬
sential in any successful alliance
is

community of interest. These
developed both by words and
deeds, based on a realistic evalua¬
as

are

Mr.

DaCosta,
Rutgers, class of
with

Hoadley,

that

from

amount

with

ourselves

for

with

allied

men

the

and

in

us

in

"customers

markets

business¬

local

The

tions
the

and the retail dealer is the

who

us

marketing.

industry,
target

Marketing

as you

in the oil
well know, is the

for' reactionary

of great

1957

for

New

promo¬

Savings in

York,

effective

announced

by

Mills, President of

S.

the

are

G.

this

jet age,

shout, "Get

hear

to

someone

horse!" I conceive
it to be our job to help update the
antique > ideas — to
help - keep
America progressive.
We

L.

Vice-President;

Daniel

Assistant

Chamberlain,

Vice-

President.

officers

New

appointed

from

members of the staff include:
John A. Baker,

tary; John
Secretary.

Assistant Secre¬

Fischer,

J.

*

Assistant

s't

New York announced the

dedicated

^unswerving.
derstand the

petition

Cashiers.
'

the

to

need to

But

we

new

process

made

our

the

by

necessary

dynamic growth of

un¬

of com¬

economy,

and to develop better tests for the

Walter

pointed

cannot

Nor

self does not understand.

can

gain agreement on the value
of something until there is agree¬
ment on the tests to be applied to
one

We

York,

Bank,

New

Baker,

President,

J.„

announced

will

He

20.

President

of

the

bank

with the

bank for 30 years,

head

the

tee

at

to

1946.

He

office

in

tion

has

1945

can

r«r-

supervised
Pennsyl¬

in

Since

1953

he

deputy
head
of
the
United States department, which
includes the public utilities, pe¬
troleum
well

aviation divisions

and

banks

and

Herbert
the

L.

Cornell

in

Golden,

charge

Industries

Group at Bankers Trust Company,
New

York

has been named Vice-

,

it

announced

was

on

20, by $. .Sloan Colt,: Chair¬
of the

engaging

in

a

was

West

57th

Street,

City,

under the
Mufin Company.

New York

firm

of

name

tor
was

was

White, Weld Adds ~
LOS

old

B.

ANGELES, Calif.
Meloth

has been

the

staff

of

523

West

Sixth

White,

—

"Variety,"

associated

elected

added

&

Weld

Street.

a

leading

nancial
vision

Har¬

Co.,

•

(Special to The Financial.Chronicle)

SACRAMENTO, Calif —Charles
Simpson - has become affili¬
ated
with Richard
A.' Harrison,

L.-

220 Sixteenth Street.

in

which

14

years.

Assistant

1954

and

he

He

Vice-

has

been

figure in handling fi¬
picture and tele¬
since

joining

the

company.
it

Eight

it

women

it

have

been

ap¬

pointed officers of Chemical Com

With Richard A. Harrison
•

his

motion

Exchange

;

began

with

for

an

deals

to

-

who

with
the
bank
in
1952,
formerly motion picture edi¬

of

President

(Special to Thf. Financial Chronicle)

Board.

Golden,

career

securities business from offices at
329

,

Mr.

is

-

.




be

to

his

Bank,

Brooklyn,

New

York,

ac¬

seven

in

of

new

builder

and

Mr.

primary

Jackson

"The Dime"

assignment

in

rank.

inspector in its
mortgage department on Sept. 23,

the

bank

Jackson

for

16

attained

December,

,1945,

assistant

Mr.

years,

officer

in

rank

when

he

was

mortgage officer.

Four years later, he was appointed
an Assistant Vice-President.
it

♦

At

special meetings to be held
time

some

in

February,

Malverne,

verne,

Brook

N.

asked

to

vote

of

merger

into

the

the

ganization,

N.

Bank

of

will

be

Y.

on

proposed

a

Malverne

Meadow

it

the

and

Y.

National

Hempstead,

the
Mal-

of

institu¬

Brook

announced

was

on

Dec. 21.

The

announcement

dent

of

The

made

was

Bank

of

Malverne

Augustus B. Weller, President
Meadow

various

all

of the

women

sistant Managers.

branch
are

offices,

named

They

are:

As¬

Anna

Brook.

Mr.

In

Weller

Boston,

Mass.,

18, the follow¬

had

had

wide

experience in account¬
methods while serving with

ing

Guardian

Trust

Company,

Cleveland.
❖

*

*

Maurice J. Freeman, member of
the
law
firm
of
Lowenhaupt,

Mattingly, Chasnoff, Freeman and
Holland,
has
been
elected
a
director of Baden Bank, St. Louis,
Mo.,

it

has

James A.

been

announced

by

Reid, President.
*

*

'

!!'.

-

Arvid Wilcin, Manager of the
Accounting Department, to Assist¬

Cashier.

Jernegan, Assistant
Manager, to Assistant

Cashier.
Frank C. Dodge, Manager of the

Auditing

resolution

a

Department,

Assist¬

to

Auditor.

to

$800,000 and surplus from $300,000
to
$400,000, making the bank's
capital and surplus $1,200,000. The;
will

vote

recommendation

at

the

on

special,

a

stockholder's
James

meeting Ireb.
26.
Reid, President, stated

A.

that the board of directors
mend

the

recom¬

increase

in capital
surplus because of the bank's

and!
con¬

j'?

j's

#;!

Si.

pany,

Clifford

L.

0

Louis,

Mo.,

the election of two

and

announced

new

Edward

are

President

Edward

$

v

James M. Kemper, Board Chair ¬
man of the Commerce
Trust Com¬

They

President;

recommending

stockholders that the Bank's capi¬
tal be increased from
$700,000 to

tinuing growth.

Bradford C.
Branch

The board of directors of Baden

Bank, St. Louis, Mo. have passed

stockholders

S.

Directors.

T.

McNally,

Treasurer

of

the

McNally Pittsburg Manufacturing
Corporation, Pittsburg, Kan.; and
Robert A. Long Ellis, Vice-Presi¬

of

dent and Director of International

that

announced

the

Company,

to

County

than

a

If

J.

stitution
assets

the

will

add

bringing

total

Meadow
to

resources

$300,000,000.
total

in¬
$10,000,000 in
Malverne

Brook's

approximatelv

Meadow
of

number

offices

Brook's
will

then

27.
>'t

Harold
of

chester,
Richard

J.

Jersey
official

positions in several banks includ¬
ing those of executive Vice-Presi¬
dent

N.

director

and

J.

Bank, Harrison,
President and Chair¬

and
the

of

man

the ' West

of

National

Hudson

Stream

board

National

the

of

In

he

1948

Bank

and

Trust

his

started

own

organization, the H.
L. Morris
Company, specializing
in
bank
audits, examinations and surveys.
Morris

Mr.

will

Trust

his

assume

duties with the Worcester

County

Company about Feb. 1.
it

it

City, N. J.,

20,

usual

announced

cash

bursed to all members of its
111

and

men

service

with

capital

had

years

with

more

bank

the

or

have

been

one

stock.

share

of

the

Among

ployee-shareholders

its
em-

were

37

members of the staff who became

eligible

the

for

gift

stock

this

White

Plains,

the

C.

Originator

N.

elections

Ives,

is

the
any

of the three

West¬

in

the

stock

Y.

has
Mr.

some

Mortgage
Vice-

President, Mr. Kenneth E. Sulli¬
van,
Advertising - Manager
to
Assistant
Cashier
in
charge
of
Advertising and Public Relations,
and. Mr.
Edward
H.
Townsend,
Methods Supervisor to Assistant
Cashier.
the

The

elections

monthly

took

meeting

bank's Board of Directors

place

the

of
on

Dec.

1

13.

He

had

been

with

the

Albany Savings Bank for 25 years.

Sullivan,

a

native

of

New

with the Public Relations Departr
since

1955

as

Director

of

Advertising. Mr. Townsend, also
of New Rocheile, started his bank¬
career

tributed

to

said.

five-year

to

years

award

have

National

First

of

bank
shares

301

group

was

To

date

been

dis¬

employee^

Bank of Jersey

with the former Chase

it

The

William

"it

Two
and

new

if

officers

increase in

an

bank

it

to

appointed
tendent

$2,000,000

Dec.

19
of

The

Trust
at

Company

were

elected

authorized
board
of

was

by

directors

on

R

of

the

Ohio

at

Citizens

Toledo,

Herbert O.

fred G.

Lilje, manager of the
Al¬

trust division, and

Wiegand, manager of trust

has

1

n a

been,

Superin¬

Bank's

Central

Region with headquarters
Winnipeg.
Mr.
Currie
pre¬
viously was Chief Inspector of the
Bank.

He

branches

has

in

Bank
and

the

the

positions at
has served

British

West-

London, England, and

successfully
at

held

Alberta,

in

in

senior

Bank's

capacities

Head

Office,

Toronto.
S'S

Mr.
been

N.

*

W.

$

Chisholm

General
Bank

London,

England

1953

who

has

of

the

Manager

National

of

India

Limited,

since

April

has announced

1,

his intention

to

retire;on 31st instant after
nearly 50 years' service with the
Bank

and

Deputy

Mr.

William

Manager,

General

appointed

Kerr,
has

succeed,

him.

to

Mr.

Chisholm retains his
the Board of Directors.
Mr.

G.

appointed

seat

on

T.

Gillespie has been
Deputy General Man¬

ager.

Mr.

H. D.

Mr.

K.

Cayley has been

Assistant, General

and

Mr.

C.

R.

Crawfurd

t

ap¬

Man¬

Hunter, and

have

been

ap¬

pointed Managers.

With First California
(Special to The Financial Chronicle)

CHICO,
Eckel is

Calif.

now

President.

corporate

io

g

'

announces

Currie

the

.

Com¬

West

Ohio

their regular monthly meeting,

e

of

in

ager

surplus of the

Bank

M.

.

'

it

'

Toronto, Canada

merce,

that

it

Canadian

pointed

City.

according to Willard I. Webb, Jr.,

Mr. Ives, a resident of North
Tarrytown, New York, has been
with
the
Mortgage
Originating
Department since joining National
Bank of Westchester in February
1955.

the

made,

of

Assistant

to

which

largest

Dec.

on

the San Francisco Peninsula.

been

qualify in

.

Named
the
Bayshore-19th
branch, it stands on land that was
undeveloped shoreline seven years
ago. in southeast San Mateo on

staff,

who

women

five

presented

on

in

Presi¬

of

President S. Clark Beise

of

addition to the
Christmas
gift
dis¬

that

'

opened the Bank of America'**
San Francisco, Calif. 600th branch
in the state.

the

Bank

it

18

v

National

*

'

-

-

*

Indies
First

The

This

Bank

Paper Company.

Valley

Company of Valley Stream, N. Y.

it

Marshall,

National

announced

ment

in

held

year.
it

Mr.

has

Bank
has

and

completed

approved,

He

which

title

National

N.

Dec.

more

the

Trust

Mass.

temporarily by Mr.
Clifford since January, 1956.
Mr. Morris began as an assistant
bookkeeper in 1915 at the Hudson

that

year."

County

L.

held

Jersey

der consideration for

Herbert

Worcester,

succeeds

been

Mr.

Worcester

further

a

added

application for this merger
originally filed prior to the
moratorium on bank mergers in
Nassau County and has been un¬

ing

Jr.,

Rockland-Atlas

Gray, in charge of
the Machine Accounting Depart¬
ment, to Assistant Cashier.

was

of

Hagemann,
of

Dec.

on

Cushman

"the

at

on

He

1938.

new

Si!

'

the

Bank

"

be

!]!

"

of

National

jointly by Emil R. Heger, Presi¬

of

System. This

Frederick

President

or¬

since 1952. He has been associated

at

!j!

H.

City,

it

stockholders of the Bank

and

Weigand joined Ohio Citi¬
in

Morris has been elected Treasurer

After serving in various capaci¬
ties in the mortgage department

Rocheile, has been with the Bank

lations

and

an

1929.

tion

Dec. 20, 1956, and

on

joined the staff of

as

it

opened for business on Dec.
1956, with capital of $400,000
surplus of $300,000.

ant

Dec.

on

21,

Assistant

21, by Harold H. Helm, Chairman.
Having had. wide experience in
both operations and customers re¬

cording to announcement

Currency

Mr.

years,

as

charge

loans

officer

new

dent

Amusement

President

Super¬

that day became a member of the

operations and that will continue

Mr.

it

man

Form Mufin Co.
ft.

construction

corporations.

it

£

of

as

Dec.

S.

Methods

York, was granted a
by the Comptroller of the

Federal Reserve

ant

served

Vice-President

relationships with out-of-

as

town

only with such protec¬
competition be preserved

ceasingly in serving yet better and
more fully the interests of all the
American people.

a

dur¬

and

has

Ohio.

and

1931

been

And

the dynamo that drives us un¬

as

vania

from

appointed

was

Vice-President

business

self.

serv¬

ing with the branch loan commit¬

years

the public. Only then can
principle of competition be
protected from the strangling con¬
sequence of regimenting the ways
in which competition expresses it¬

1,

Dennis, who is 51, has been

bank's

the

past

Jackson, has

statement

Mr.

recent

among

Jan.

on

1957.

the

both

on

succeeding George
who
will
become

ganization,
Champion,

of

The

of

Johnson, President of the 97-

be

ing

must

Stewart

in charge of
the bank's national territorial or¬
Dec.

pioneers and missionaries in
developing understanding, first
within
our
industry
and
then

value.

ap¬

Manhattan

Chase

be

its

measure

been

has

Executive Vice-Presi¬

The

Jackson, has been

C.

the

Mr.

The

ing promotions:

announced by George

was

Meadow

'

if

Dennis

E.

an

of

dent

part of

a

New

charter

announced

it

Savings Bank

West

measurement of competition.

One
explain that which he him¬

it

it

Y., it

appoint¬

'
$

institu¬

Vice-President

a

named
«

transfer

a

the

N.

of

The First National City Bank of

a

prin¬
ciple of competition, and to that
principle our dedication will be
are

Dime

Vice-Presi¬

Picken,

utility control and divorcements
ment of Daniel C.-deMenocal as
They would set the oil industry
Assistant Vice-President, and Leo
back 40 years, to the days of Mr.,
B." Cooney, H. Eric Schmidt and
Jones' shoe store. It seems strange,
Reginald P. Vincent as Assistant
in

named

his

Assistant

proposals

variety, including public

now

Trust

Westchester.

of

named

was

ville,

add

year-old institution.

dent; William P. Schweickert, Jr.,

concerned- with

are

1,

Edwin

great challenge that confronts all
of

Dart¬

has been
graduation.

Bank:

competition
to
of both the con¬

the ^advantage

Mr.

official

Bank

of

Alfred

strengthens

1931,

Bank

the

to

profits.

ifi

Frederick W.

been

*

The

City

Jan.

understanding of the
in which dynamic distribu¬

sumer

since

following
at

competing

Winning
tion

bank

undivided

For

Must Progress

ways

has
of

1950,

i£

hometown

the

the land.

across

the

of

tion's

of

1952.

1948,
since

graduate

a

class

mouth,

tion

of
the
interdependency of
relationships which exist between

bank

the

graduate

a

that

voted

$100,000 to surplus, by
of

Savings Bank and Trust Company
the Walbridge
State Bank.

and

bank

announced

directors

programs.

exists

#

Kleeman, President
Trust Company, New

Colonial

of

in marketing any of our products,

well

in

Rocheile

Ellenville National Bank, Ellen-

Medora

Rela¬

Department.

Mr.

He

years

West¬

visor of the Bank in September of
this year.

National

York

New

and

marketing TBA,

New

:<!

sometimes failed to get misunder¬
on

He

anti¬

of

25

of

and varied

the

National

Bankers

and

CAPITALIZATIONS

monopolistic, ac¬
sales, we have

or

OFFICERS, ETC.

York.

with

BRANCHES

REVISED

New

Bank

zens

Company

NEW
NEW

industry.
It is from within the industry that
many of the complaints originate
our

of

celebrated

National

chester, having become associated

CONSOLIDATIONS

competition

of

concepts
within

Bank

week

with

23

Kenneth

—

H.

with First California

Company, 221 West Second Street.
He"

was

previously

with

Neal

Kellogg.

operations, were elected assistant
secretaries of the bank.
The

increase

in

surplus

to

$2,000,000, Mr. Webb said, was
brought about through a transfer
of $250,000 from undivided profits
and results .in boosting capitalsurplus to $3,500,000.
-Mr.; Lilje has been
Citizens

since

time, he

was

1932.

Joins Kidder,

Peabody

(Special to The Financial Chronicle)

SAN

FRANCISCO,

Thomas L. Corn is

now

Calif.

—

with Kid¬

der, Peabody & Co., Russ Build¬

with

Ohio

Prior to that

with the Commercial

ing. He
Fund

was

formerly with Mutual

Associates, Inc.

■

The Commercial and Financial Chronicle

(2816)

24

Continued

is

from page 5

being used to observe

sion

of

What Electronics Means to Yon

rear

whereby

"picture-phone,"
will some day be

its
you

but actu-

able not only to talk to
see

various electronic assembly lines,
For example, though on a perhaps smaller scale than the completely
automated
factory,* one

the person you are callRegardless of the vision of
embarrassment
which

ally

lie

raises

development

one

no

den^thTu

represents a tremendous advance in. the field of
can

communications
is

its key.

and electronics

—

"

! Looking ahead, we can say confidently that the footsteps of the
future in the electronically-conhome

trolled

announced
noiseless

moving

recently,
all

an

RCA

electronic,

-

having no
the develop-

refrigerator
and

parts,

condi-

air

all-electronic

of

ment

outside

just

are

Only

door.

your

tionjng for the home. In addition,
there is tlW "radarange"
devel-

oped by Raytheon and being used
today on a limited scale in kitchen ranges being produced by a
few forward-looking manufacturers.
This cooks by microwaves
and is able to turn out a complete
in

dinner

of

matter

a

minutes,

compared with hours as with your

present cooking facilities.
It is
an amazing characteristic of cook-

such equipment
thai;
thoroughly and to
heat is not dissipated

with

ing

while it
the

cooks

taste,

outside

the

which

have mentioned

will

before

I

sup-

of your future
controlled illu¬
your rooms at
the

ply the lighting
home, and bring
-

-

■

mination

to

flick of

switch

a

It n^b.~ In

the turn of

or

fact"it

a

and

cynic

en-

for

record-keeping

governmental

While

processes.

and
work

paper

it

has

the

of

housewife.

As

one

home

robot

is

whether

the master control "his"

label

to

"hers."

or

of

ment

neath the car under different road

advanced

else

is

electronic brain has au-

an

stations

reaching

all

on

estimated

an

technical

evidence

of

coming revolution

a

shopping

for the housewife
in this home of the future,

living

Already experiments have shown
that

is

the

pushbutton supermarket

practicality. The housewife
will be able to shop in ease and
a

comfort

with ' little

and

effort,

Having made her pushbutton selections, the groceries, meats and
vegetables she has ordered will
reach her at the paying desk in
a matter of minutes, all packaged
and ready
to be placed in her
This is fantasy?

car.

such
of

Not quite—

picture of the supermarket,

a

the

future

seriously

large

has

drawn

already

by

at

chain,

grocery

been

least

one

the

IGA

Co., chemical manufacturers.

Among
in

the

States.

machines-useful

other

office

find

we

of

contents

leave
nffipp

perhaps- the
tronic

1,600

tronically

and

the

cuit

same

file

More than

television
in

now

cabinet

electronic

lating machines

pone

are

tabu-

installations

in classrooms

use

It is

mits

fuller

a

'It's

the: factory
television

to

cuit

are

fully in the cards that the

virtually

each

two

If

economic

i«t
is

its
its

and

go

industrial

of

steel

forms

the

hark-

™in
in

fact
tact, our
our
system—then electronics

industry

svStem
system

and
and

the
ttie

highly sensitive

sys-

nervous
nervous

brain of this

m

aasssmm**-*-

other

electronics

phases

are

to

come

circuit

call automation.

devices

watch

dangerous

into

peer

rap-

Closed-

being used to
to

processes,

combustion

furnaces

and

are-

and

chambers

otherwise

to

monitor

factory
operations
not
possible in any other way. Closedtelevision
electronic

devices

Electronic

controls

Electronic

controls

are

also

maintain*

maintain

operate production lines

tions

cf

For

*.

1

of industrial

examnle

n-T

m a

Fsso

standard Oil Company's a high-*
Bayway.
(New Jersey) refinery
SDeed

has

u

electronic

eie5iror"c

been

control

control

mtpm

a

years

will

medical

than

atomic

can

read

and

of

"OSS
j

ard

punch

h

valves of

cards,

the

taneously

are

the

master robots




Francisco,

Arizona

New

and

represents
Hutton's na¬

group

of

E.

F.

of 33

offices.

-

would

plications,

4,000
5,000 comparisons.
Closed-circuit
for

additions,

or

tors,

The

television

Jackson

be¬

At

and into the
which

scale

no

Nautilus

&

than

-

of-

factory
with

corner-

is

energy

hospital

the

future,

to

the

?rA*f*°jn ^ for example,Products,
Thompson at Loyare in (use,

with

University's

School
entire

an

of

(and

of

I

It

is

Cleveland

image

ohL

«

" Clinic
♦

amplifier

It,

television

a

?

a

Wither-'

address to members,

Witherspoon

said

that

appointments

Bond

and;

office

being prepared,

are

level
Club

and

-

a

contin¬

activities

of
in

the

-

for

coming

Francis du Pont Adds

research

J

/
r

LOS ANGELES, Calif.

— James*
Keating has become connected

A.

with Francis I. du Pont &

Sopth Figueroa Street.

a

on a

ably hesitate to put

television

fluoroscopic

has

cut

+•

,

bv

y

.

accomplishments.

20

the

u

-.

Co., 677

-

a

large television

mav

he easifv

hv

in a colsed-circuit, the televised picture of the heart may

*

tions

purely
of

your

.

of

this

can

be

added

in

one

of

electronics, but for the life of

mechanical

opera-

government

are

.

FRANCISCO, Calif.—Jess
now

connected with

this, I feel, there is signifi¬
meaning in terms of increased
opportunity,- ' improved'
health,

cant

and* the

4

'

Sutro &

Co., 55 i^Jorth First Street.

me,

Shaw Adds to Staff

pursuit of happi¬

.

(Special to The Financial Chronicle)

parently limitless end.

wealth

*

(Special to The FinancialChronicle>

thArjasta-of electronics unfolds,
I cannot put a "period" to its ap¬

.

'

With Sutro & Co.

SAN JOSE, Calif. — .Geprge N.
Pardue/ is* npw affiliated ; with;

as

In.

Military

SAN

W. Braucht is

the

endless^eemposition. We can dot
the "eye&y. and cross^ the--—tees'* of

pre-

*

and

than

would-appear the subject is

era

The

in

future to every present statement
of
accomplished
fact
that
it

additional television
monitors connected to the cam-

Aids-Government

Regardless
advances

-(Special to The Financial Chronicle)

'

more

means -of

room

With Sutro & Co.

-

.

SO&ZKSJtatS;
ess-* .slsw-S* ,35
another

;

period to its

particularly in the past Sutro &
Co.;
460 * Montgomery
decade, and the manifold applica-'
Street, members of the New York
tions
which
have
developed,
I
and • San
Francisco
Stock* Ex¬
find
myself - unable to complete
changes. ;"
*
** ~ *
;
^*
the sentence, so to speak. So much

screen

studied

tremendous

a

science,

SBSST w®*8ruS5

,

his

.

namoe

,

turned

(Special to The Financial Chronicle)

philosopher once said
quote): "Only the past is

settled."

Club's

year,

year.

A French

Den-

class

current

expectation of

high

the

air¬

curious, though
^
r
;
100 students can watch a demon- understanable, fact that^ when- I
stration at the same time. At the talk about electronics, I invari¬
inn

an

ued

level.

0la

an

plans for 1957

nuclear-fueled

practical

out-/

Lewis' J.

President-elect

In

committee

the ground of conjecture and rest
at

the

formally

plane and, even farther ahead, the
atomic-engined automobile are off
now

in

President

..for

laboratory

and

meeting,

Co., reviewed the Bond

spoon.

just, around

atomic-powered

,

President

over

the

sys-

television

Club

then

being constructed.

production
and

and

Bond

Curtis, Director.
business

-

now

The

Whitney," Ji'., of Dempsey-Tegeler

today

less

&

the

going

atomic-powered submarine

home
the

to

events

Wolf

use, made by the Dage Television.

checks

closed-circuit

a

termed

fantastic.

or

scans -.the -.pared- toi permit observation by
gates
and consulting
physicians : and
instorage bins, and simuL 'struction of students.'
,f
as

on

-

American Funds Distributors,'
Inc., Director and Treasurer; Gor¬
don B. Crary, Jr., of E. F. Hut¬
ton & Co.,
Director/ and George
M.
Forrest, of Paine,
Webber,

production of goods and

be

of

Angeles. A. Norman

of

ap¬

well

Los

of

Bennett, of Stern, Frank, .Meyer
& Fox, was elected Director and
Secretary; Robert L: Lindstrom,

10

vessel

full

President

Club

than

next

ANGELES, C^lif. — Wil¬
Witherspoon, of WitherCompany, Inc., has been

&

elected

the

energy

use

The

D.

spoon

power plants already built and in
simul- the
process of'.construction.
The
multi-- atom-driven merchantman of the

digits per second,
taneously handling 1,000

machine's^be viewed in

the weights of
they come* from the
EIsewher^ »t General Mo-

materials

LOS

and write at the rate of

.

binS'

role, they

San

Angeles Bond Club

liam

—

extend

services

brain

60,000

terns

dis¬

possible only
the controlling factor of

eventual

?
f" electronic equipment
^ toecWs, far beyond the ot- Card, operates the ingly injportant role in industry,
commerce, banking and merchan-

•

Elects New Officers

Further,

the

electronics—will

sfis sjhsssz sjf&aa&ssujw
...

that

atomic

of

more

the

yond its primary

more

This

Los

airport

Naval

S.

pursuits

through

half-million

a

residents."

in

powered.

expect

can

peaceful

pos-

within

U.

every

be

plication

electronic

new

records

three

Michigan

* automatically

computation6 Ste,
trolled batching machine- auto^etetion of scientific enel- tomat,cally seecta and weighs
r^^rfl^d£
preclse amounts of any number
neenng and
general office data.
0f bulk materials. Using standHowever,

iiNe^t?ifarh?er

we

x-ray
deelectronic-diag-

a

that

dream

Sea

and

systenr camera mounted

developed by Minneap-

0iis»HonevwelL to

!?•« Sara SfcHSSRURVS
jthe applications of

in

This

two-thirds

life¬

our

insure'

safety

brain, the Datamatic 1,000, which
is here—in the
will keep track of ;the hospital'

opera- tistry. where

at

^J

Service ordered

of

traffic control and it is

the-knowledge of humgn ills and their therapy. Only
recently, the Michigan Hospital

and

cameras

of

in

which cwill

maximum

"broadened

signed to do anythmg that man s a continuous record of
operations, image to
accomplish, there. At the Heltzel Steel Form where it
urateljr ant± and jrc
f, the func- ^en, O

,

Doheny

and

tional network

Eiecronic devices have been de-_

techniques
in
the
diseases and have

new

treatment

idly pushing many segments of
industry toward completely automatic operation/or what we have

and

com-

each

Mexico.

■

veloped

improved

other

commuting

other

time. ;

of the teachers'

use

within

tance ! of

of

per-

equipment have made

sible

where'; closed-cirand

and

nostic

into

short step from .the office

a

microscope,
vices

rKrSed " l° safeguard plant

..,:n

.....

in

firm operates 14 branches in
California cities, six in Texas, and

completelly electronically con¬
trolled. The developments in this
area
will certainly be eventually

through-

time, the electronic medium

to be used to

feeding them1 automatically
cancelling machines.
r

other

—

of-industry

or

home

indus¬

an

the

be

closed-cir-

100

greater and greater number

a

Post Office Department uses electronics for sorting letters and
other-mail by destinations and

mos) important elec- great variety
of. all
the

device

outer

W

the

upro

or

of life—your life
the future.

way

Angeles

elec¬

of

aspects

military aircraft of the future will

drawers to less than three cubic* students without; .imposing any
feet of space. Social Securityrec- #additional burden on existing, ed6rdsJ, are to be processed elec- ucational facilities. At the same

Computer Is Most Important
Let's

a

as

extended into commercial aircraft

circuit

reportedly quite interested.

science

a

William H.

ap¬

,

.

in

deep-dyed .optimist

am^-electronics, I am sure, will
change
everyone's
life.
Elec¬
tronics, in the final analysis, is

tronics.

thored a book—a 42,000-word die- audience of 43 million people, or
tlonai'y
of potentially
useful more than the regularly enrolled
chemical names lor Charles Piizer school population of the United
&

matter

a

a

are

^

and -scientific

fact

known

or

whether you

—

a

I

moved

electronics

onlooker

an

-

of compute insurance premiums at. capabilities than today is otherprac-rthe Veterans Administration. The wise possible with crowded classticability.
U. S. Weather Bureau is using rooms and, in many places, inadeStepping out of the home for a-computers to digest temperature, quate teaching facilites.
short
distance, we-'have visible pressure and wind data and the
jn
medicine,
the
electronic

Everything

or

difference where

no

as

—

participant

other

is expected that

engineer has been quoted as saying: the only problem remaining
in the design and operation of a

sit

you

pattern of expanding utility out the country and the number
where speeds and operations will
all the facilities of your house— through
electronics. Underwood is expected to increase each year.
be possible to
a
degree beyond
from attic to basement
will 'be Corporation recently showed off a Through this medium, the best
electronically controlled, probably device * called
the uElecom File teachers and instructors are able present practicality. All of the
from a central panel within easy Processor,
which
reduces
the to serve the educational needs of - large cities of the world will be
reach

It makes

ness.

a

machines

is

which

parts

as

com¬

puters and other electronic office

or.

car

improved

plication.
such robot now turns a-blueprint conditions.
Joins E. F. Hutton & Co.
into a completely finished Pf°dThese are random samples of
Approximately $1 billion a year
has been earmarked for electronic
uct, an intricate mechanism which
progress 0f electronics in inWilliam
H.
Doheny, Jr., will
is the heart of a jet plane en- dustry. They can be multiplied a devices in the defense budget.' join the securities
brokerage firm
This covers a variety of highly
of E. F. Hutton &£ine's fuel-control system.
hundred fold as! one surveys the
Company, 61
Computers have written music, entire industrial complex / and technical equipment for guided Broadway, New York City, as a
played checkers and picked base- they fully suggest eventual auto- missiles, for military aircraft, for limited partner effective Jan. *1.
ball winners. The U. S. Signal mation of most of our factory and Navy vessels and military ground He is the first riiember of a prom- *
Corps recently unveiled an elec- plant operations. Even in its in- operations. Radars have been de¬ inent family of California oil
whose
protection, has
tronic "brain," an IBM 705, which itial stages, which I seriously feel veloped
pioneers to enter the stock bro¬
does days of paper work in min- is all you can say about auto- bepn extended four-fold over the kerage field.
/...
first sets used in World War II.
utes. It is designed to provide mation right now, the applications
.Mr. Doheny has been an inde¬
devices
have
also
been
high-speed control of global logis- of electronics result in greater These
pendent oil operator since 1946.
tical operations and save days speed and efficiency of operation, made more selective and less sub¬ He is a member of the board of
and weeks of paper -work.
A Evenutally, automation will not ject to error in that they can Union Oil Company of California
"classroom communicator" is be- only create more jobs, more prod- detect only moving objects, elim¬ and the Brea Chemical Company.
ing used at Penn State University, ucts at lower cost, but also will inating structures and buildings His grandfather, Edward L. Do¬
which enables a student to reply raise labor standards and provide which sometimes have interfered heny, made some of California's
to questions simply by pressing more leisure time for the work¬ with proper analysis. Even be¬ most important oil discoveries at
yond that is the development of
one of several keys enclosed in a ers.
Kettleman
Hills, and later sold
infra-red
detection devices,
said
box by his side. The class perhis holdings to a firm now known
Many Uses of Television
to
be
far
superior to existing
centage of correct responses and
as
Getty Oil.
Don't ask me how they
In other areas, some overlap- radars.
individual scores are computed by
.The appointment of Mr.
Doheny
work.
I frankly don't know, but
the machine. At Massachusetts pjng on those already mentioned,
to E. F. Hutton & Co. signifies its
I am sure that their usefulness is
Institute of Technology, the de- we have seen important advances
continued expansion and interest
by
the
electronic
partment of modern languages is resulting from the application of not denied
in the western states. In addition
scientists* who
developed
them.
investigating the possible use of electronics.
Today,
there* are
to
principal
western
offices
in
I'll take their word—as I have to
computers to translate languages. some 26 educational television
Los

And

itself.

food

Electroluminescence,

the

front

being

result of the introduction of

gineers*wish to study. An ob- slowly into the use of electronics
for its own office operations, ic more than
server in the rear seat watches on
has not been laggard in its appli¬
try; it is a
a 14-inch monitor. The picture he
cations of electronics to the de¬ today and
sees can also be microwaved to
fense of our country.
Here lies
the laboratory where engineers
can view what goes on under¬ probably the largest single seg¬

of the completely automatic factory. Their task, in this respect, is
to correlate and integrate the

possible

ing

the

of

of

the

on

gradually

suspen¬

during actual
is attached

camera

bumper

focused

etrated

A

underside

the

to

cards

test

operation.

.Thursday, December 27, 1956

..

SAN"

MARINO, / Calif.

with
fnn

S.

Lynch is - now- connected
Shdw &-Co.^ 2394 Hunting-

Wayne

DriirD

*

Volume 184

Number 5598... T he Commercial and Financial Chronicle

((2817)

2j>

Erie Natural Gas Go.

Public

Utility Securities

Offering Completed
New

Indianapolis Power & Light Company
-

Electric

dates

Indianapolis
only two

1881

to

after

years

vented

in

service

back

—

Edison

Thomas.

incandescent^

the

Indianapolis Power &

in¬

lamp.

Light

was

formed by a merger of two com¬

70% of all families

The company has
growth, and current
about $43 million

million

postwar

belonged to
sold

holding

a

"

the

to

company

public

the

and

became independent. *

company

j

the Indian¬
apolis metropolitan area of about
528 V square
miles,
ill i Marion
County * and * parts
of;adjacent
counties. v.The
present estimated
population is about 620,000. The
increase
in
population
in
the
1940-50

decade

equally

good

continued

since

"Crossroads
served
lines

by

and

an

time.

the

capital

been

called

is

America."-

of

six

and

growth has

that

has

and

of

rate

Indianapolis

.

Indiana

20%

was

of
the
is

It

railroads, five air¬

130

highway carriers,
and hence is easily accessible for
shippers
of
basic
and
finished
products to all the principal mar¬
kets for manufactured
goods in
the

United

focal

It

new

the

highway development
there

will

be

converging
other city.

on
,

is

States.

in

point

'

' V

;.

on

any

country.
The list of manufactured products,
-too large to itemize fully, includes

pharmaceuticals,

paper - products,
kindred products, ord¬
textiles,,rrefined petroleum,
rubber products/ road machinery,
jet engines, automobile parts —
"including truck engines and trans¬
missions:—-and telephone equip¬
ment/All of these industries pur¬

food

and

nance*

chase
from

theif

requirements
Indianapolis Power & Light
power

Company.
V

•

General Motors' Allison Division

is

theV;coi*ipany's ii largest* indus¬
trial customer, and GM contrib¬
utes

.annual revenues of over $2
million. Eli Lilly, Western Electric
and
Chrysler
rank
next,
with
other
fense

industries

and

Federal de¬

activities following.

Ford is

large plant and General
Motors is spending $75 million to
building

increase

;

a

its Allison

Division..

Indianapolis is also : an impor¬
as

the

trading

center

as

for

a

large farm area, providing a mar,ket

for

territory extending

miles in every direction.

75
The City

U.

S. in per

a

ranks seventh

in

the

of

number

of

from

715,000

in

1945

to 3,355,000 in 1955.
Profits
share jumped from 97c in 1945
$1.66 in the following year, when
,

per

to

taxes

estimated

are

at

$2.09.

President

we

offers

so

serve

much

at

$2.07

for

and

at

1958

in

1957

will

effects

due

be

of

1957

partly to the
and

financing

expected reduction of

an

during

construction"

in

1957.
One

for

reason

much

so

the

issuance
in

stock

common

of

the

effects

to

industry.

decade, with its diluting
share earnings, was the
of raising the common
equity from below-normal

FREE

Box

899,

Dept. K
Salt Lake

City 10,
Utah

& LIGHT CO.

16%

raised

to

Colorado

-

-

Idaho

Wyoming




to

purchase

ture.

one

Such

^

primary

situations

Who

be/the

can

tificate, such

clientele

warrant to be

cised

only after Feb. 1,
before Nov. 30, 1957.
The

net

of

plans

company

a

exer¬

1957, but

in

ers

the

use

because

investment

of the

close

these

Usually

smaller

few

a

friendly to them.

are

The

Erie

have

their

personal

confidence

gaged in the business of prospect¬

by-products

friendship
the

.

*

Due

the

to

small

number

minds

local

a

interest^

association with them
of

officers of

the

m

and

directors

local company is not

a

the

On

personalized.

other hand, when the president o2
a
local company can pick up the

and

shareholders

of

any

the

.

widespread

sufficiently

interest

local

has

and

and

..

connec¬

better j©&

a

large investment firm with
branch

and

directors

and

I: Home folks know each other- A

of

Market Is Limited

in

telephone and talk to the head or.
companies, it is natural that bis local investment banking firm
when a stockholder wishes to buy
about a situation, no matter howor sell the stock in
a closely held
large or small if may be, there is
corporation, other investors are a much closer
relationship.
'
►
' r'
'
'
located
through
this
chain
of
For the Executive Salesman
friendship existing between man¬

thereof.

such

The company is the owner of a
seven-eighths interest in 74 scat¬

tered

in

because

management.

derivatives

or

In most in¬

invested

interests

interesting thd management o2
cofpor&tion in establish¬
ing a closer relationship than a
larger firm can accomplish.

(outside of manage¬

ment)

local

small

a

stances the several hundred other

stockholders

there ks>

of

to pay for drilling control of. the business and the
wells and for working
cap- " other shareholders are people who

ital.

localized

a

But

business.

tions, can usually do

hold

proceeds

new

Offer

good reason from the psy¬

very

with

corporations.

individuals

Time--

the

chological standpoint as to why a
smaller Investment banking fbnx»,

re¬

lationship between the sharenoia-

-

to

substantial

very

conducting

are

investment
a

Has

Interest to

None of the foregoing is new or
the least bit original to those.

in

local in na¬

Firm

Personal

leases

mately

covering

6,621

approxi¬

in

acres

the

Erie

\

County (Pa.) Townships of Sum¬
mit, Mill Creek, McKean, Fair- agement and its friends. " When
view, North East, Franklin, and this happens it creates a certain
amount of extra work and entails
Washington.
It also

owns

in

28

a

2,925

a

seven-eighths in¬

scattered

leases

Crawford •to

in

acres

The»investment

enlarging his clientele among
important clients is certain to de¬

in velop
instances is better delegated
dually

local investment firm

a

than if

of

acouiriiT*

leases

contacts which even-

some
can.

ment

County (Pa.) Townships of Spring these transactions were negotiated
and Cussewago.
The company is by an officer of the corporation.
t,h<*

who

salesman

is

degree of responsibility that

many

cov¬

.

of

lead

to

.working

t

the establish¬
arrangements-

with the management of his

local

banks,, other business organiza.p
though the actual trading "tions, and insurance companies,

in

but

28%

two

It

^

years

stayed

was

Even

"on

around

wells in the Summit Township gas Ueres
ted, the possibilities for ;for profitable clientele • building?
:;•;■/ .:/■
;.... ■/
...
- •"clientele
buiiding'v are we 11 ,through radiation and the devel¬
Giving effect to the new finauc- •worth the effort / involved,: and
objective 'has-r perhaps been ac¬
opment ,of a. general securities
complished. Some reduction in ring, there will be; outstanding other
favorable
' developmepts "business are excellent. Watch for
the debt ratio
(now 50%) may 225,000 shares.
"which may also evolve. *
'and create these
•
above

the U.

tric utilities

S.

average for elec¬

that the company's

so

field.

.

_

.

,

be-effected, next

when

year

plans to issue $6 million
preferred stock. In 1958, $8 mil¬
lion

in

/•

Paine, Webber, Opens

Connection

projected "with New Investment Office
some temporary bank loans. "Con¬
V GARDEN CITY, N. Y. — Inves¬
struction expenditures in 1956-57
will average about $17 million per tors in suburban Long Island got
their first look at the only elec¬
annum
and
in
the
three
years
tric stock quotation board in the
following about $15-$16 million.
In

bonds

1955

is

the

obtained

company

Located

savings of about 26c a share
five
year
amortization of
emergency"1 facilities
and
5c
a

Jacksqn

share

...in

Shopping

from

-

from

tion,

both

accelerated

deprecia¬
being "normal¬

items

credit
was

construction

on

approximated 9c and there

charge for amortization of
of
100.5
equal to 6c a

a

account

the

;

.

:

-

V

-

The

company
operates, five
generating
plants
with
capability of 627,000 lew and in

steam

expects to add
Another

unit

105,000 kw

a

of

the

same

coal

consumption

is

fr&m

the

Tecumseh

The

Last

has

the

year

company

the

return
was

year-end

on

6.5%.

traditionally

earned

invested

Since Indiana is

"fair value" state,

a

City,

provide

Stock

43rd

in

the

provide
such

Paine,

chain

investors

as

complete

a

Dow, Jones

also

curities.

services

statistical

and residential electric rates

aver¬

only about 2.42c, the com¬
pany's regulatory position appears
satisfactory
although its neigh¬

Most
in

of

lead

to

also

friends

a

local

company

Auerbach,

Public

has had
State

Service

some

of

Indiana,

difficulties with the

Stock

R. L.

Feigen Opens

RichardL.
elected

to

company

At the recent

price around 28V2
pay'ng $1.50, the stock yields

5.3%.

offices

the

Exchange,

Stock

D'Assern

Co.,

120

table

place

&

York

tant

Feigen

was

treasurer

and

firm

compare

favorably with the

industry averages.

manger

The

tion.

of the

Insurance

Life

larger

and

for

HAPPY

NEW

YEAR!

some

ing.
the

Inc,

December

Partner

&

Co., 20 Pine Street*
City, members of the?
Stock Exchange, will
15th.

Mr.

with the

firm

some

January

has

been

time.

Eisele King Partner

ar¬

John
New

Eckert,

president

of

is

Investing Com¬
of Utica,' passed away

Valley
18th.»

.

,•

-

-

of

Exchange,

situation

presents

ner

same

and

if

firm

the

of

any

to sell

The

situations

Should

a

for

are

very

merger

or

York

in

by

the

Exchange

E'sele

of

&

Co.,

on

&

50

Kim?,

part¬
member

Libaire,

Broadway,

New

City.

J. H.

reward¬

On

sale of

will be

3rd

Leonard

(X

admitted to part-

'nership in John H. Kaplan & Co,
in¬ '60 Beaver Street, New York Cit>r

the

ownership and management,

Kaplan to Admit

January

Fischer

corporation develop, this also

negotiated

in

estate

possibilities

vestment firm that was closest
t

member of the

Stock

January 2nd will become a

their holdings

usually

H. Libaire,

York

its posi¬

shareholders desire

purposes.

A. James Eckert
James

•

a

Stout

both

A.

f

has established

when

itself

Benefi¬

Beneficial Fire &
Casualty Insurance Company of
Los Angeles.

pany,
-

Standard

Mohawk

partnership:/„,.-

on

"Humann

investment

the

through

that

is

financing

the

that

foremrly assis¬

investment department of

cial

to

Christian Humann to part¬

nership

a

of

York

admit

corporation, it is inevi¬
that when expansion takes

ranged

brokerage business.
Mr.

securities

New

smaller

New
a

maintaining

and
the

in

market

his

York

New

with

demon¬
cooperative assistance

of

making

an¬

make

will

he

Wertheim

at

Broadway,

will conduct

in

City, and
general investment

that

nounces

on

stration

The

price-earnings ratio,
based on the estimated earnings
of $2.09, is about 13.6.
Both fig¬

Johnson

To Be D'Assern

confi¬

When

established

York
Ydrk

New

Exchange, will adjuit Laur¬

J.

directors,

been

Richard¬

&

Street,
the

January 3rd.

management through the

recently

membership

York

New

Feigen,

has

from,

to

and

Financing:

Future

dence

Pollak

Broad

S.

ence

ih

stockholders.
'

>

'

■

.

will

members of

New
'

■

Company

Commission.

30

City,

—

bor,

Harry1'Breen

son,

es¬

established

as

partner¬
'1

can

recommendations

officers

of

well

as

of the office.

which is
transactions

through

stock

Coleman,

Auerbach, Pollak Partner

se¬

Friendship

the

li¬

A.

a

also

are

other

in

Thomas

retire
the firm December 31st. *

or

busi¬
larger
held,

closely

investors

'

the

over

the

of

admit

which

other

time,

of

tablished

wire.

news

in

local companies

substantial

Charles O. Ames of Cold Spring
Harbor is manager

follows.

smaller,

brary, a Stock Exchange ticker and
a

period

will

Exchange
member,
to
ship on January 2nd.

with

acquainted

company

stockholders

will

—

a

Adler, Coleman Partner
Adler, Coleman & Co., 15 Broad

"sub¬ rStreet, New York City/member?
of of the New York Stock Exchange-,

a

firm through

investment

ness

Webber

other

become

long

office—

;

period

a

they have had confidence

Exchange.

ultra-modern

new

local

When local in¬

connection.

a

directors of

up-

ob¬

on an "averaged" esti¬
original cost rate base, and

mated

will

show

over

;

Stock:

a

recomfhendation of the officers

Mine,

50% stock interest.

a

Garden

of

stock

often

profit

vestors
an

Field

JiAPPY'NEW YEAR! '

"

There is prestige value in

years.

such

the

can

stantial

invest¬

Roosevelt

board

coast-to-coast

strip.'operation in which the

company

at

in

company

Webber,

new

Center,

new

•

tained
a

office

New York

the

-

&ri Curtis'

Small

A

Transactions in Company

Trading

to-the-minute quotations of trans¬
actions as they take place on the

•

share.

present

ment

Paine,

With

Sound

A

In

Corporation

-

:

area.

tax

"

'

Possibilities

The

f

opportunities?

A

the

company

ures

Serving in Utah

owned by a small

are

Smaller

And

f

additional property in the Erie in
the stock of certain of these when he does so, he should boCounty (Pa.)Townships of Spring¬ closely held
corporations is lim¬ alert to the opportunity which*.
that level for several years, but field, Girafd, and Fairview.
" "
ited to
a
marked degree,- when ;this provides., Where -there is a
In addition,, the
by 1953 was135% and currently
company o.\yns .compared with the other
situa¬ limited,-local interest in the stock
in. fiveis 38%. The latter ratio is slightly -interests
producing gas tions in which a firm may be in- of. any company, the possibilities?
than

and

UTAH POWER

purchaser

corpo¬

focal point in the development of

holding company system.
"in
equity ratio in 1945 was less
a

The

established

are

share of stock for $2 per share for
each share represented
by the cer¬

ering

age

COPY

the

a
warrant,
non-detachable, entitling

The

community

everv

well

are

rations that

business interests

stock

from

nearly

there

stock

group of investors whose

on

levels after the company emerged

Tn

,

:

•

of

which is

terest

capital
Write for

com¬

-

•

certificate

there will be attached

necessity

about'7.2%

opportunity

each

*

•

•

and the

1957

size is planned for operation early
in
1961.
Over
one-quarter
of

area

To

share at $2 per

one

offering has been
•

in

recent address be¬

a

$2.20, The anticipated leveling off

1958

explains why the

The

pleted.

to

Enlarge Clientele

ing for, drilling, producing, proc¬
essing, dealing in, storing, and
selling natural gas, oil, petroleum,

unit.

AREA RESOURCES BOOK

unit.

were

fore the New York

population class and

and

Special Situations Can Be Used

share plus

one

Society of Se¬
curity Analysts, forecast earnings

Pritchard, in

capita income (among,cities in its

above)

By JOHN DUTTON

cents)' of

company was incor¬
lifted,
porated in Delaware, on Oct. 30,
but remained irregular thereafter,
It has its principal office
with $1.62 reported in 1954; in the" J1956.
and place of business at 317 Bald¬
following year earnings improved
win Building, Erie, Pa., and is en¬
to $1.88 and for the current year

profits

excess

ized." The interest

tant wholesale and retail center

well

common

postwar

the

in

and
134%.

use

because

the

in

shares

of

364%,
earnings has

share

"increase

an.

common

the

about

impressive

"interest

of the most diversified manur

factoring kcities

in

less

partly to

program—

than
.:

increased

gain

been

39%'

for

consisting of

warrant for

are

number

balance

has

good

During

the

residential kwh

a

Over 1,100

.one

stock

1945.

increased.

the

Federal

industries, large and
small, are represented in Indian¬
apolis, and its factory operations
.cover
such : a». wide V variety
of
products, that it is recognized as
.-

While

"freeways"

more

it

also

shown

revenues

50

(par

Erie Natural Gas Co., Inc., in units
a

compared with

decade

average

the

The company serves

J

in

customers

was

own

each

peting- companies in 1926, but- it
system until 1940, when the stock

their

own

...

stock

common

homes.

$18

Securities Salesman's Corner

McDonald, Holman & Co., Inc.,
York City, on Dec. 19 pub¬
licly offered
150,000
shares
of

By OWEN ELY

to

'

members
Exchange.

.

of

the

New

York

Stock.
j

.

26

The Commercial and

(2818)

Continued

inalienable

from first page

right of

individ-

every

ual to control the fruits of his

honestly

ac-

his

is,

mat

iuoor,

votes

our

How to End Coerciveness in

is

minimum

a

of

eco-

which

own

change.
But

humans cannot

we

-

tfce operations of "natural
include something else in

law

addition

the

to

Physical nature.

functioning

of

Natural law

ex¬

tends also to the realm of human

which

action,
three

includes

interlocking

least

at

of

areas

un-

varying principles. These are first,
the Higher Law which applies to
political

structures;

second,

the

ThW' fund thirdf under the
economic

laws
laws.

These three

come

ot?hlnS- °f "ruIes for living tofrp 1Vn s^iet^-" These things
are
intangible, and because we
cannot see

them, taste them

'h™? ^ tend to pin

or

tael

queg£^

a

Of
The tangible world
wJ!! of.that we are certain. But
th?n««
S0 SUre 0f the reality Of
imnnc "°
Seen' So We attempt to
impose our own rules
the realm

is real

on

human action by
trying to

re-

area"""1 natUral laW in this

vital

the

immorality and political im¬
becility of the action.
Many

am

trying to make

the

of

derive

programs

mental

mysterious
to

cess

inexhaustible

an

wealth from which it

largesse with
the

sand

a

without

want

th
The

losopher
draws

sum™on expert testi¬
eminent British nhi

the

late C.

E

{the distinction

M

Joad

have

I

in

mind with these words*
"The nat-

oral

order

of

things

existing
SPace is not the only or-

itvnntereK- alS0 an order °f space
realy not subject to time and

de!

from which the natural order
nves and
to which It is
subject
The non-natural order

contains

beauetSv0farWehiCHh *""*■ g°°dneSS a"d
auty
the most eminent* it
are

or°ritainS, God- • to
the most part • •

tor

belongs
natural

?nfhOUgh lhere is
Z spirit, which element,
m?ke"uP an is akin

Prised
the

the

so,d
soul

o\Z
Tn

or

Perhaps belongs to the

♦

n

the

moral,

nomic

areas.

law is

no

but

political

But

follows
law

violator,

ral

is

usually

J

universe

predoml!
First

r clvliization.

i.

firmia bVathf Greeks'« was contianitv Tod elaborated by ChrisChristtan

-P?™ part of the

♦

tradit'on of when it
Western

Eurrme
Europe.

Periods

occur

£ largely result that
forgotten
With the

or denied
the

nature

maUn4Vestaetus "lisi"terpreted

and

status in it miscon-

ceived"

is

Needed

— A
RHigious
Rehabilitation

'

called

designed

to

2ard' As 1 have iPdb

?h

catert '

ae concePt Of the orderli-

effectareIarEUlav,rity in cause and
relationships ot the realm
•f nature covered
by the

physical

ButnoeveiS,KCCented by mosl «
prrp?
error

us.

y?arSl we have dea Peculiar of
tolerance for
the renlm
moral

velnncrf
*
in

eco-

Zn!» an,d political 'aw. For ex¬
°,nIy a few years
ago fha'i the
that ,^aS citizens of
west
am

a

iwe V°ted themselves $50 a

mnnfh old
month
age

pensions,apparently

without any thought of
where the

would

money
mates

of

scheme
costs

the

ran

of

all

combined.

chemy

sideration
of

those

called

of

high

other
Belief

was so

from.

come

cost

as

the

as

state
in

Esti¬

pension

treble

the

functions

political

strong that

al¬

no con¬

was

given to the rights
citizens who would be

upon

Road

Finer

wrote, "In

be."

In

other

Friedrich

ment,s,

there

might
I'Dlll

is

to pay the bill




or

to

the

better
a#

'Bill

no

of

Rights,
been

have

DvcAUiUifiAArt

of

called

"

It

fringed, —etc.

vbnti

moral

In

cease.

speaking

and

here

in

the

of

the

.

of

collateral

be¬

moral

and

for

life

was

ent.ir° social and moral

under political

tive

domination.

is

important

to

remind

our¬

noft

sion

had

built

tering

on

this
into

religious
it.

politics, let

cepts of the nature of

en¬

which

and

held

were

established

this

a

in

real

American

long before
was

by

idea.

It

,*

began

as

to

manifested

act

The

basic

art,

sential

God,

the

Since

all

men

each

God.

of

was

*

one

the

are

of

°°d.

his

ea^h

relations

follows

of

group

that
men,

themselves the
on

is

with

derives

«?ov^reign

all

no

The

other

man,

the

men?

bv

use

as

Keep inem*

author
I

This

was -

of

be

it

p?i.

i

is

is

own

.

a

him;

is

It

vou:

man

in

man

is

no*

to

pro-

intervention

Federal

and

governmental power*-.**,

details,

to

these

gets down

words

("i.e..

the

statements of devotion to the ideal

of

to

limited

they had

tuose

main

who control the fruits of his labor.
-

temperate, its

But when the platform

.control

hv

more

gram.is less fantastic, and it pays
at least lip service to the ideal of
limited

necessary

ord^r

controlled

•

,

implications; but its tone

much

have* limited

we

j/»

is also full of half-truths and mis*-

not

that

this to say of the Re-I

leading

as

abolishing all private

recognized

had

•

"By comparison, at least, the
Republican platform has several
merits. It is just as repetitious; it

the

usM.

i

publlcan platform:

instrument

?n

society.

ociau-t

mind

; Ad

governments

are

as

if

been written.'The

never

record

the

of

ministration, and

Eisenhower
even

most of

tho,e..the, present Republican boasts and
who inrist that unless government promises, run directly .counter to
supports'its citizens, many will be tnem. . . • -- . j : v !
p n,r

es*:

ram aware ,hat there are

jll-clothed.

—and

the

the best hope

ill-housed

ciuection, "Would

starve?"

!

ill-fed.-

and

.

It-

seems

*•**.'''_
.LtKi;.,

,^

to

me

by

*

let them

you

-A

.

T.

*

and

man

as

servant of the
is

r'gh+s

to

all

to

i)f

that, t.ho^e

pose4hat question show

his

•

a

grave

who

»

Hazlitt

Mr

goes

to

on

indicate

that this state of affairs "presents

dilemma

td

convinced

are

those voters
that the real

"future of America lies in th°

,

who-IUIU^? OI

a

nres-

:u.1...p.. &-

deplor-^°f

ing- that

free

Americans

would

-d

re--Permit their less fortunate neigh-

-b

x

a^wilS?
growth of .a swollen,

bors to. starve; that our .-.doctors
government,
would not aid a smk person who in wasmngion.
..
^ .
people," bas no money; that persons with
? And here.I- believe it is nerti^?

upon

ing,

all

as

,

protect
•

the

m^ividuals.

infringement

others?

look

ture, government,

no

corollary, tne

of

function

others

come

Or have

our own

we

creT

the all-know-

powerful

deity at whose
altar we must worship if we are
to be fed, clothed and housed—all

can

its

men

be

=

-

transferring its conthe bureaucracy!
That is

to

;

i

real

,

all individuals, from

arrogate to
power to trespass

ana

of

taxpayers

still look upon gov-

we

God-given

in

birth to the idea of limited

Do

ernment

at the expense of each other?

A

.

those
gave

the

whose

the

T,Ztorvajf nofthat

^'

T
liL,!
;"1,AhLr?IpddiSft itZivbtZwn
but that he might try to

v/i

is to unfettgr. the ^This belief is often:
expressed

energies

nature

whose

of

his

political application of this

spending

°"®y;"
a

lationships to God and his f?llow-

all

men.

and

of

aa

conceivable pressure

u

violating the moral law.

buveniiiient

basis

Revolution,

-

un~

„aI

nnnnoitroWo

r y

i

confiscation ^muld

erally

and

departed from those basic concepts

the God-given rights of others

without

the

schol

a

He then proceeds to document
burden of the tax -his charges, in some detail.
c
the lower income
The following week, the* same
is auite evident thet

It

means

trol

the

charity

tb

.

dignity and freedom directly from

It

music,

f>.."

dual initiatiy^
Marxian* Iniquity
;
a>-^ble lack of faith in their^ellow self-reliance, and : freedom.. and
Where are we todayHave*-we- citizens. In effect, they are^ sayr
—!]0+ Vw ^-VVi growing coucern

universe.

creatures

us

of

fn

to

property by

ex-

firm

a

h,/t

a

a

ne

derision!

the

alleged

level

to

a

The Graduated larom Tax~i

of

that

in

dinated to its

launching plat-

a

.

authority flow from

Ruler

provide

who^e spirit is still
of all mankind.
<•

idea.
the

rise
lu%

oi

in

of

attainment

purpose

creative

tradition.

concept

power and all

as

the

worship.^
Such is

18th Century as the
political ap¬
plication of certain religious con¬
cepts which are inherent in the

JudeQtChristian

would

American

the

in

level

ip

of : e v e

already, under todav's tax schedunderstanding, reason-^ ules, traveled one-third the way
individuality. These, toward that goal! May I again re-

political

itself

day

some

down

If

^

personal

on

iginai
uui
IV
original purpose, to
produce revenue, has been subor-

individual to achieve his

for

arshio,

b°gan

an

a

tlAflC

the pers0nal tax has ri.»n

87%

tiuv

regulations

higher ends of lifp—su^h

Declaration of In¬

It

religious—not

a

But

might

now

the

own

would

shrill, intemperate,

is

Jruths',and g|arj,nf self-con trad jc-,
tions. It is
bid to buy the votes

Senator pro-

a

rate

^

tbe, tDe,m0"at'C

Pound of abuse, half-truths,

rp-

and

one

<<f

senousty? It

avowed design of Marx, who also
intended thnt this unRroited power

climate

.

P'a«orm really meant to be taken

from

without j^stric-

rules

a

turn,

form

great

Revolution

our

dependence.
It

tyranny.'

his

by Henry Hazlitt,

"ro'ej11

good society—moral courage,

base

his

Our Founding Fathers rebelled
against the established disorder of

political

direct

the

shouted

groups.

-——

by political masters.

thp

Republic.

petty

to

written

Wo-

ableness and

con¬

to

laws,

integrity,

and his

man

God

to

to

current

review certain

us

who

of

responsibility

greatest' development'' in
those
positive factors which contribute

dimen¬

So, before

discussion

a

free

energies

In such

selves frequently that the
original
political structure of the United
States

be

imposed

Concepts of the Founding Fathers
It

to

creative

well-to-do

When

that

is

choice being accepted as the price
of freedom.
Thus, the individual

cannot

we

personal

the

trends,

political economist and
well-known author of many books
and articles in this field,

caid

to

wprfl

but

current

eminent

of

rate

thpv

not alone in

am

over

preponderant
borne
by

a

results of that choice, the
the penalty of the wrong

of

ono

all

not

me

week"

highest brackets,
the
minimum
rate
is. 20%, and
personal exemptions have
been
drastically reduced,. so that the

maxiynim

*"r»

risk

transcends

If

the

~^

providing

tax

numn«?p

confiscatorv

But

established which

personal freedom of choice with

a

the

to

re¬

recovery

Znn

quote from two pre-election
articles in the magazine "News-

.

was

designed to permit the indito develop his God-given
by

let

16th

Constitution,

corporate

snip

incomes

?

was

the

concern

my

1913,

the

of

To show that I

was

in

produceZvZue. Pe^/onal

tpsted

in-

talents

which

nZltiS

be assured
greatest personal
favors from government,

by its promodest levy, with a
of 1% on personal

this burden.

vidual

would

bring that about, I do not see how
we
can
stop the powerful drive
our

shall not be

...

Th?

iieve

violatp^"—'"Th»_ri«ht
.

to

a

flat

a

pxpmnt

...

religious

a

ofthetMnZl

citizens, but, rather, to prove that
the voters need only elect them to

iniquity

ratification

rate

to

law"

am

the realm of nature.

put

society

was

legisla¬

area

sense,

reality of

realm

A

no

people

the

of

I

broad

a

habilitation:
lief

laws

right

not. h»

of the people

and chemistry we would
attempt to write our own eco¬
or

th*

proofs

with

Americans

as

ic/

a

physics

"Congress shalk make

as

the

and

In

—"The

tampering in this

un-tn

Robin

will give but

I

Marxian

on

normal

Prohibitions," since it is

If we could gain the conviction
that natural law is just as real in
economic and moral matters as in

nomic

likp

,

efforts to explain to the voters
their duties and responsibilities as

rich

income up to $20,000, a surtax up
to a maximum o£ 6% at $500,000.

filled with such restrictive phrases

tive

•

;

strenuously with each other,

ple—the Federal income

p0nents

which

right; there is only majority might,
as determined
by counting heads.

not

v

Platforms

would

y

.

^ax was described

the many

Bill

robs

pay

replete

Amendment

gov-

self, they insisted^ upon further
safeguards in the first ten amend-

a

words,

by

is

That

w|th

restrictive
provisions of the Constitution it-

democracy right
what the majority makes It to

is

Gesigned

actions

to

—

statement.

]mp0sccj

elu."lei]u sir]ril^ar
jSe.a j3insf
which
they had rebelled. And. not

Hayek's Road to Serfdom. Dr.

von

Jf

pro-

~

exen

^ax

lor-

needed to pre-

were

oppressive

alike

poor

th'is

0ne

Declara-

They

Constitution

a

content with

Reaction,

Dr.

refute

to

their

in

Independence.

*

History
of

[? Provide the safeguards which

vent

a University
Chicago professor; Dr. Herman
Finer, who a few years ago wrote

book

of

they thought

order.

Here, for example, is

a

enunciated

mulated

so¬

there

moral

and

Robin Hood

Hood!

a political order which was
give effect to the principles they

tion

of

those

an

,s

that

Party

"ttam'tad'ZZery

gotten and

England

had

economic

at

in

immoral—but the practice is even
worse.
The promise is soon for-

lished

human

Many

assert

independent

no

neighbors

fJam advancing the premise that
orderly universe of natrelati^l1" GfCh °ne °f itspart of
inter¬
related departments.
No
this

scoff

others

relationships
,

of

action; they deny them.

to

♦

realm

factors

three

*

c^ent platforms of

by a bloody
they risked all they
had, the Founding Fathers estabto

the

The

'

just ex?

in which

war

than ingore natu¬

more

in

from

ence

of

the

upon

them.

Having wrested their independ-

the

upon

It is not necessary
in order to control

limitations.

well.

as

laws

violation

wreaked

and

innocent

the

fairly

accurate

questions

assessing

the

to

we

which

can

.to

be gained by

political
have

,

answer

campaign

recently

been

.

accepting and discharg^

duce the econoipi^ goods it promises to dispen^—people produce

exercised within their proper

were

.

\

Ji

The natu¬

cupidity, and the penalty which

or

natural

"Tbis attitude to the
nam fn" n0" the. whole

.

We may ignore,

ral law goes on operating in every
area
regardless of our ignorance

always

that

bludg-

,

eco¬

ignorance of the

excuse.

cannot suspend.

we

spiritual

.

and

be

ing their charitable duties.

.

ignore the rules of the game

in

must

unfouyd°ey

same

magnanimous gesture! We can and

order' Man- therefore
'nat~r°na W'fb the rest to the
of thp
tural
order, is subject
non-natural.
0 tne
™

very

Americans

e0ned into

mu^h
Lhich

of

do

and

monv
mony.

of

depriving

quired property by the

man

a

very'graeroM

not concede

duction are land,, labor and capihave been talking about
tal; and government is not one of ;
*
"iking about just_ex
these. - Therefore, before governLA«,
composed of sovereign individuals ment can giver you anything it
bases for
of the camnaien
was derived from these concepts,
must first take it away from some- b
,
in tiirn
Government, relegated to the star one else; and conversely, before it
tus of a servant, was to be strictly
can give somebody else anything,:
v,iu£ication of
limited in function to the protec- it must first take it away from
of vottion and preservation of the sov- y
ers> pontifical prognostications on
ereign rights of individuals.
The
mat is not the road to proshealth and mortality, and a brief
of
powers
_government, obtained perity or to justice. In current
by delegation from the citizens, theory, government promises to smattering of logical discussion of
ririnrinipq and nnlimps
were
provisional.
They were to play Robin Hood, robbing the rich
"
be retained only as long as they
to pay the poor.
The theory is
The political aspirants vied

ac¬

store

own

jree

will

I

measure.-

on.^JJut they failed to

him; man is controlled by those
who control the fruits of his labor,
The ideal of a sovereign people

other citizens of their honestly ac¬

theorists

ourGL°J'thiS Speech' but al^° "or
I
In7 aS 3 free peopIe> that

to

dispense

can

right to life

has

nomic freedom.

same

generous sweep

and

cial

pur-

the

achieved

manner,

laws

so

only for the

Federal

i.e., the supersti¬

process,

important,

not

from

itself

The

ing, and so

little meaning; to
have its full significance, the right
to life must be coupled to eco-

tion that government has, in some

twoUreaIltangifle-reaIitylaw is the
and
realms of natural
two

current

explain that government cannot
give away whatjt does not possess.
Government does not pro-

labor.

own

,1

voluntarily and in

nomic goods—houses, food, cloth-

by

Government's misnamed "welfare"

Some do

The point I

which carries with it the right to
sustain that life on the fruits of
his

its

ness!

government would prowith
economic security,

least

,

December 27, 1956;

fice to correct such amoral
blind-

tent of the claims of those

ice,

A Democratic Government

ChronicleThursday,

Perhaps the most blaseeking
was
that, under their

subjected.

own

Financial

frnedom of choice will choose to

^ homeless

nent to ouote from the masterful

the^

address in which that greatest of

a free p°oole would
reiect their responsibilities to their

living Americans, Herb^i Hoover,

feUow

rreatness of spirit at the recent
Republican National Convention
held in this city. He said

peoole slncr,

in

streets* that

and that we have renounced Christ's commandments
on l°ve and charity.
j

men:

refuse,

Americans
we

we

to

concede

have' sunk

that

so

we

low.

If

have, then liberty is dead, and
are

takings part

in

its

inter-

ment.* And all the laws and

gov-'

prnmertal coercions which human

ingenuity

can

devise will not suf-

sought vainly to point the

"•

•

•

way

to

May 1 suggest to you that

instead^ of, your traditional plat

form, you should make a resounddeclaration, of principles of

inS

American life.
Those
years

great

ago

.

.

.

.

'

documents

from

our

of

180

Founding

"

Velume-184 v'Nuinbferr5308;?#>The-ComrnerGidUgnd FirtanvvalChronicle

' ■*$-v'•<%

(2819)
Fathers

must stiU M the ^pun-; appears

elation

lifev

ofi-bur

;

-

.

I "Cannot

this

Ihisv statement Ja: Article ^political ;li£3 is,,a. "dog eat.dog"
American-Way% of ^ lot "No -free ^overnnverrt'^r-thet^ontestvfar^otes and taxes -and
'■
r
\'f ' vv
blessings o£ ^liberty can be pre-: power. These things follow logi.

philosophy of the free society

:

has cosmic

now

into the problem at
*

It

-Centennial' Conr -served to- any people--but- by. a nally and plausibly once we have
1
The Nature of Government
RepublicaniFArty, -firm adherenceto jlisticer-mpd- i accepted the notion that this uni-;
This does not mean, however,
whose whole background has been eration,-temperance,
frugality and-verse rolls.on .indifferent to indi-. that we-are out of the woods.
the preservation of the freedom virtue, and by frequent recurrence*,vidual
conscience and the moral There is, first, the time
lag to cope
of men, make such a declaration?
to fundamental principles& ,n-r
* values- by which men have
sought with. Our morality—and this is
"Your
task is to generate a What
were
the
fundamental.**0 Bve*
;
"f
especially true of public morality
spirit which will rekindle in every 'principles referred to
vention

of

situation* provided-we strike
the right level,

QWn

sanctions.

21}

is-oossible

for

tft

us

n^w bifth

f freedom

nortiorv- of

the

that> goal

haw

a

The maw>

.

already*

has

,

.

•

not

country but
ideals.

only

love for his

a

devotion to its true

a

You

here

are

to

feed

the

reviving fires of spiritual fervor
which

liye

stirred

once

Americans

-

-in t£T*
imoliciS

sciemJ ThJ

in contemnorarv

.

to

Mason?.

^

^Given

situation

a

such

Ifltf*'

century world view

this

as

t

and

die

for

human

Americans, who knew

liberty—
private.

no

interest,

no personal ambition/mo
popular acclaim, no. ad
vantage of
pride or place which overshadows
the. burning love for the freedom

of man. ;;

1—^

^

>•-—*•

-

^—*-

uerseded;

«*«wirr .with

—

-

with

" result

the

that

V'' v

; "I have faith that .there

prin-,

are

ciples which neither communism,
snrialicm

lanr

us

revolutionary world view

prepared the
—is-largelyrpremised on the now
way
for: tbe Foundjng Fathers.
I .believe
t h e y: .were;- broadly we cannot put much faith in
any
discredited. 19th ^Century non-re- ^he 19th
Century world1 view ofspeaking* re 1 igious vrincipies;: nottpolitical remedy for the political -hg'ious outlook -The norms of our
cosmic materialism started toso much rthe doctrines-andtcreeds
insanities of'1956^ These things political,life still continue to igliquidate the
which distinguish one sect
religious foundaorHddr.; are the end result of faulty educa- "ore the/-change
which;*, has oc- tions of a free society. But we
nomination
from
another, ybutjtion. -.The -evils w h i c h
have oorred in our understanding of the
are living
in the post-materialist
rather the fundamental belief
emerged onto the political and so- universe. We put our counterfeit
era. wbjcb means that we are also
God which they sharew^It/was aj cial scene/in-dur
timewerg qnce cpins^trvthe slqt-in 28^, or there- /nvjng
" ^e. post-socialist era.
basic American
principlcvto mairt^ ideas;-fir^t teid:ativeLy broached, ;®^h*sv^^d the machine^ delivers
rpb
world view which appearedtain-a strict separation;^ between then.\ hotly debated and finally,
t^C/boisoned capdies^of 't^56.'-S0tOS2jpctiOn socialism has been suchurch and state,:'not 'because'
ofgaining general acceptance: at'
-1& h1?PCrative that we gcr to

by

American

beeh-accomplished'for

.

.

Hnr-nAiitraliom

not"

..

might
'

be

TPrnnnh

religious.

cnhnlar

......

gifted;; hear

The

-

ncTnffiHOTjilln'-e'iui

.

x

voices in the air

thpir

fwrttv

is pdpularly believed

distilling

are

fmm

anH

that

fniinH

have

we
if

sanctions for "a

uionf.

1

1

•

societv"of' indivi<jU

-

—

-^y

limited

gOVCF!!—

free market.

truths

into

came

the ;

universe

rect

part in Uhe government, of >ept situation
may be black, but"it
of. society but it must be regarded as«is not
hopeless. I have asserted
are made.
They are ; the first of their political instituthat.-.the * religious dimension of
as
inevitable as the existence of tions."
A free- society is possible
hfe wbich was a prime factor in
the Supreme
Being, the forces of only if it is composed of religious
the political calculations of the
gravitation, and t h e ceaseless ; individuals. These convictions are
bounding-.Fathers
suffered
an
struggle of mankind to be free."
visible in both the; Declaration of,
ecli-pser I believe I could convince
-Thus Mr. Herbert Hoover! Would
Independence and the; Constitu-, you, jf i bad'-the time and if it
that a merciful God had
given us tion. The framers of those docu-^Were
necessary for this audignce,
wisdom to heed his admonitions!
ments
bejievpd that they were that the

along with

the

delusion That

shooting stars

,

.

p-

The

j

mental-climate of the 19th

transcribing;
llws of Nature Century was not congenial
and
of' Nature's (jod "
suof'Natu^s tiod
The'0,<- -ligious"faith.
Nineteenth

n>'«C *
Go'^m^ent—•.

.

Federal

Voracious

Monster

to

re-

"

was

thought it had Droved that

science

is

ment

Century

Constitution

of

premacy

fh
;

nnt

n

wacnn

t

tb

j

t

b

d

T

j

of

sav

that

t

the

deeDer

ht

understanding

the

doomsdav and

wro^s

the

sti11

come

puttinr first
tirst

power

government

plish all sorts
and

of

moral

even-

menting

nr;vtc. me win ui uuiuuii
aecomwin S. Corwih,-rioted-scholar

to

social, economic

purposes, Imble-h

this, faith,

people

thrust enormous nowers

have
gov-

uoon

else tamely acouiesced

°r

while the powers and
functions of

goVernment have
acceieratnd and

been

extended,

centralized,,Now,

in-raid-twentieth centry. the F^dera! Government makms its
weight
felt

almost every

in

tions up.

Let

human rela-

;

w.;

me

-

-

quote from a statement
by Rowland Hughes, until recently
Director of
the Budget.

"The

t»;e Fe^pral Bureau of
He said:

Federal

other

among

electric

Government

things,

the

is,

largest

producer in- the
largest insurer, the

the

lar^est lender and 11— ■ -y— • *
ier, ■ ~ 1 the largest borrower, the largest -landlord" and
the

largest
tenant, ;the -largest
holder'/-of grazing land and. the
lafgest holder of tim-beHgnd. the
largest

La^;' B^k-,

ground of American Constitutional
Law"
cWnbes this sanction

.as

fp^ows: "There

certain prin-

aje

ciples of rr.ht and

lustice

which

cnbtled to nrcVail of their

a-p

own

intrinsic excellence, altogether regardless of the attitude of those
who

wield

the physical

resources

cipal

exponent

and

pnse

this

is an

of

private

individual

enter-

initiative,

list."

amazing

,

One might add that the F-doral
Government,

by far-the largest
the largest spender. In

taxer and

fagt,

if

is

consider

ve

Government
loca1
oca1—Pie

Wmiter
prox
lonal
tion a 1

—

Federal

total

^

things
tnings

ig

30%,w;our
for

tot-1

of narrowly

a

na-

uo

govern-

first
first,

re]igious rehabilitation along:

a

t.

^

t

and
pnthnritv. which was
intended to be the servant of- the

pennlp—not their master
Now that we have creat^a
vorariouc monster,

urfeasy-bout it.
not frj-hten us.
ulcers, from

rranv

then
of

?ome

world

i

c r

crisis,

we,

there

our

onores-

c0

Is

on.

ahead wbich whl take
out of this morass?
Ts
a

wav

a wnv

to

recover

tiiat'

anee

believe

I

g-t

neru-t,,ai

cnwlly

aNo
rot

the

bv

dms.

T+

once

there

tbe snnitv and bal-

Such

.cu°h principles, human laws
nnfuinri
wh»-v pnHH-d ;to
w transcrint,

a

end^their

enactment.an, act-not of: will;, or
oowt

of. discovery

one

ord-r

to

based

pattern

set

their

on

laid

up

down

a

b"

e~*Do

m e a

Nineteenth

of

n s

bulldozers,

Century

materialism

itd

govornmpnt

fatal

in

and

.

t^

"we

-

and

iden

by

that

rivoa

its. zanotions

every

order

from

the

depre-

■vailing "onc»r>tion. of'/th* rosv?ic
As evidence of faith in tho

sanction, of

"Divine

t'ons

changed, and

been

themselves.
suffice

Providence"

their actions, t,Hey pledged

to

jach other their sacred honor. for"their lives their
tunes and
But

the

in

ise

a

course

,

of

the

past

half the basic prem-

of; religion,

the

us

rad-

change

even

action

Two,

always

Government

or

covert,

and

inappropriate

the

or

assumed, that

toward

ultimate

an

mechaniral
consist

of

kind.

this

time

was

meaningless
u^der

purposeless

t^e

dancer

premise of

vou

rPrKi

•

monuments

hardest

f^ee

fed

are

word

last

Qne
never

of

Freedom

is?

—

of freedom

fires

The

by tho sacrifices of those
Remember Hungary!

loV^t

who

6

'

Hapm!! I linrll III
"■©■■III ■*#H"H I"

■

remedies,

there

is

-n

^Beane

from

vailing conception
have

which

pre-

of the

cosmic

that

people

means

tendency

a

the

t<Ttry

to pEdtern

be

Chicago-

D,us

a? ^avv^Pier

1° deTneld0a0
28-July

t.,i„

next June

Fan-

in-"
'iti

Chicago

ia

14.

Announcement of the

national-

firm's/parChieagoland

brokerage

the

in

the

of

one

business

*air'

ticipation

sanctions

rD^ot.

will'

at the

lv-known

its

»

u

T

a

or

-

©VLSLS| «| CJa

LXIIlDII'31 >311

nosis

order
measure

but

time.'will

man's pride. "
Dride

>

serted that every social order de-

stumble^ by

'Today there is;a wide

give them

causes

tendency four our attention to be
fixed at the exciting level of political change and revolution,
I

rives

a

oodn^ of water

if

v,

Into

fall

creeping in

coft rootlets, or like

thn cap''Uarv

;

world
world,

mechanical

bi,-iitehad
a'ccjdent

ac-

any accurate diaglasting cure we must go
much deeper than this. I have as-

"dead wild

who^v
who71y

many

believe that for

blm^

then

and

suggest

we

pera

s0

deteriorating domestic and:
situation, and even when

our

world

a

to

for

of

to

molecular

which

in

an

to

When-we think about the

of

jumble of

action

forces

form
-this
t^is

heading

destined to

to'individual,

dividual

A New Birth of Freedom,
:

of

invisible

un-

it

makes

instrument

"

in

seemed

motion

referred

through the crannies of the world
Rke

complish all the goals politicians
promise and people demand.

thought

realitv
r

fortuitous

a

pfoms which
form

vm were

-aid

with

Jamps

^oral forces which work from in-

ourselves."

soohistieated,

operates

compas-

in

set

dertones of violence, either overt

scientists

quotations. will

lo-.indicate

ourselves.

William

libwill

strength,

courage,
to

life,'

us

We

"

humility

iaith

"those tiny

as

that

nature of all political action from

.

th"

to

and

what

For these and other
reasons, we
succeed in concealing the coercive

largely

by

it

more

sion

to be

us

"give

time

same

understanding

whatever

saying

the

need conviction

ask, who has a right to tell
what to do with what is ours?

the

Eehpse cf the Religious Dimension
century and

we

further. irwestWa-

of .matter

by

at

observed

sanc-

men

"The God who gave

ertv

that

say

about

brought

r^ult of

has

..

.

British physicist',
for,193o^'Thirty-years ago we

God

zonal

,ps ,a.

climate

»—i

the

of

man's conduct m societv. This was
in s+rW, conformity with the basic
truth

has

that

now

are

we,

cosmic

of

power

Jefferson

recognize
knew what

the government is
"ours." And again, whatever government does is excused, because,
we

was

doing

are

Or, if

many

•__n

frpo.

was

to

excuse

does

government

frpe

T^o climate

people

soLwe jpan

and

-

the

was

the

was.-^a

oligarchy it

an

its other-ness; they
they were carrying around on
their backs. But in a democracy
we feel that the government is
us,

shanes the land-

as one

for

easy

government

or

dMin-,

r

a

longtime

,ane«

v-

after

—

the

-—

*

of this belief, force of

sustained the morality and conventions whioh had been inferred
from t^is bolief.

concept that

.

,

,

.

ot

,

s

,

made- on

wa.

'
> ^ .nra
rector of the Fair.

nev

t

'
-u,

,p

Sponsored by the Association of

Commerce and Industry, the Chicagoland Fair will feature! five-:,
and-

exhibits

colorful

For exampte, the

has inher-

hptri^c

jmuwreo

to

f£fn'Iht
^„ S

,

J?ea^ Tow^^
realitv. The

habitnon-mechanical
'"ii

innv

than

mnrn

iiIta

lik^

o

8

"A,*

Robert A. Mi liken, disent rights which antedate govern->tmw'shmd son of Caufornw *"d
which- governments- are Nobel
prize-winner
in
physics,
established to defend presupposes
stated^ at about tbe same time:
the

belief

every man

that

all

men

are

crea-

tures of God. Take

it

is

in

it

is

idea that there is nothing but

God,

and

awav

replace

it

the belief

with

the
na-

nojitieal
ture. and in nature nothing but
the religious

through

—

disaonear-

b'f"?

of

w

trying

were

But

means

conform

extent of
the revQ'ution in scientific thought,
secular..- pjr james Jeans, th^

that

o»'t

tion, much

are,#But
omra

Lndifforent, merelv.

is—and

w»v

to

solelv by the application of forces
Gf proper magnitude and direc-

^edi-yice, save icaUy

to matters

as

marked ."out-

only

conditioned

the

monarchy

countries, and un3" Will as such and interpenetrate, limited despotism took over.
all Reason as such; They are eter1101 am> ir«nujtable. In relation to -Changes In Scientific Concepts

are

by-n-odhigh

sive;1 tax burden, and
us-

us

its

^ o,

the

be

porting

tion, for God intended

this

Tf thejrend do-s

ucts;;>orruntiori in
juyhmle

of

When

Was thought that scisupoorted the thesis that man

could

djg_

1-

sup¬

over-

Tlru

marVp* economy.

community.

democracy most people

^ool<:

on-

express its nature as to bind and
it.
They are externaLtb

restrm+«d func-

tmns

to thp

swung

^s]tion'® tt
ence

country

a

now

Vmi
case

a

*-"~iv.ivc,i uut

unhealthy climate for the philosonhy of individual sovereignty, lim-

ap^-for

dangcrouslv im-

figure

whose,founders s°t
ment

and

take"

lent

support to the concept of a' in a

free Society

no-

effort

nitnerto

nrinci-

the

pies

levels- of- order.
State

"tav

meome—a

pres<sjyd

all

nad

w e r e made by no human
hands; mdeed, if they did not antedafe deity * itself, they still
so

of

the.largest. deelaration."
*
; ; ,
;
ship-owner, and the largest truck,
;• In= effect, the Founding Fathers

fleet operator, For a nation which
is the citadel and the world's
prin-

their

wnjcn

point of departure for
Marxian socialism, but it was an

of grain,

owner

,and
wrH-

economy.

"The "Higher

control

powers

country,

teacher of poMfical

Ing'jbf

sanriions.

of

^°^reaso^ Like fire, elo~ the^first'thing' inTv, judgment
i1:.,is !?ot it is
is force.

quence—it

fearful

x

struggle

for

existence

in

"The

id^a thof ,God

being of
been the
cf

not

a

in all the main

body

thinking of the ancient world,

a

instead

which

.„4ll

God

a

who

rules

...

basic

past

several

cover.

centuries

these

surface

cboppy

I

distinct

ievej

w,th

seaSf and

wbpre

can

dis-

levels;

the

waves'

and

the d-e^er level

great tides of life ^weep
Qr, one might use

Hqpk apd for|b

and whim, as had

caprice
case

is

.

fundamental change in this '
Hundreds of companies are exarea will
be reflected by pected to display their products
repercussions
on
the
political and services at the exposition.
level. As I read the history of the
An
estimated
500,000 persons,

every

analogy of

an

earthqimke has
the

surface

tremors

a

felt

exnected to attend the

Fajr

They

exhibits,

Dageant

and

tsinment

earth

on

the

but

the

surface

17-day

the

many.

speciaL,

features,

c

see

enter-

roctaurant

snack

will

nnmfortable

m

and spacious

fountains

3arS'f ^eas

a

other

eniov

oir

P

focus far below

view

will

colorful

earthonako.

of the

are

are

y

be

among

the

facilities,

..

rehabilitation I mentioned earlier,
d
•

-

Any,can Ry»Iu«»n

r a

f

adopted

ri

on

bw'tleo^e
June

12,

u

Mason

1776,

human

J

relationships.

You

turn

bvman affair, toto an arena in

through

lam

.

.

.

that

idea

made modern science and it is

questionably

the

has

around the epicenter.

un-

do

foundation

modern civilization."

'

of

'

The world picture of science is

and

there




only the fiercest and most cunning
vou do something to

survive, and

;

Fundamental Princinles of the
1

d

^

-

with

UD

is

It

answers

Duttin5

f
ot

ic

if

universe—thev

tinker with economic and
utical
pro51ems
from
now
ppri

*.

^
of

lev-

to

thmr

nature

peculiar

nolitical

„

t

are

ievel__in
th

Dr0blems

economic and

me'n

-.government, misunderstanding
true nature^ We have chosen
to dlsreSard the warning of George
Wasmngton, who said: "Govern-

.

ti

evil suffered

every

during the past century has been
due to to° llttle government and
can be corrected by increasing the
scope and functions of political
action. Throughout history peo?le h*ve displayed a pathetic faith

whjch worlds

the fight for domination and where

now

on

the side of freedom.

The

much

tides,
of

an

nor

about
can

we

the

We

cann

waves

t

and

get at the focus

earthquake, and these analo-

gies break down at this .toint. But
we

can

do

something

about

our

W.

.

Stuart Bernard

W. Stuart Bernard,
ner

New

in

Bernard,

York

senior part¬

Winkler

City,

&

Co.,

passed^ away

December 19th at tne age oi oo.

-

Continued

from.i page 7

price movements, and being dis¬
couraged from switching into new

/

ventures.

Tax

Flow

ferred

of

the recent

in

Sug¬

be

De¬

haps

the

taken

to

step

that

the

ease

locked-in

flow

and

of

this

solution

than

it may sound.

throughout

is

the

less

the

And

world

that

a

It

answers.

so

«)olicies

many

that

v/hen it

ties.
lifelines.;. .V'jf this

it's

nany—and

story

a

five

not

but

our

It is
pose

thing, of course, to

one

bold

the

just

is

lief

tax

legislation

the center of

tional

storm

that

often

be¬

not

double

moon.

astonishment,

my

official

this

the

at

.;

provided

velop slowly.
-

aim

In

;

the,;race
until

and

/,

-

within

everything he set out to do.

Well, West Germany's great industrial boom today is a matter
And,

record.

it

is

than

more

those

were

a

less

earning

than

other

$5,000 a year. An estimated 300,000 of them were completely re-

Thus,

in

economic

an

•

overseas—particularly
when
it
comes
to
encouraging
venture capital.

raised

with

our

ciimate. bl

know

the

investment
NAM's

tax

to

20%,

in Canada.

„

I. know that the NAM is equally
concerned

designed to

-

demanding
And

stages

it presently

as

and

for the tax

the

^.In

financial

we

community,

anxious to

are

encour-

•

vests the
-

-

the

and

fully

under present

who
rein¬

of that sale in-,

investment

real

a

of

fully rein¬

individual

proceeds

another stock
realized

:

stock

one

revision

gain,

lias

even

not

though

laws it is taxable.

The bite taken from dividends,As we see it, the Full Reinvest¬
however, is only half the problem,
ment of Capital Gains would per¬
even
greater investment obmit the individual taxpayer, at his
stacle is the capital gains tax, one
option, to sell a stock.on which he
of the
penalties

the

sale

securities

of

months.

The

held

over-

effect of thp

tax

equity financing and broader" poses a very crucial question. It is
shareownership, the tax problem whether the expansion goals we
3ias never seemed more
pressing' have set for ourselves can be met
or more immediate.
Moreover, we if we continue to choke the im.annot afford a lag in
meeting it, pulse to venture and to gain. The

age

or

in

pis

behalf,

preparing for the future,
Someone has got to worry about
the investor
and right now.
In
took

at

existing

effect

their

must take

we

climate

tax

critical

laws,

the

on

and

a

study

investment

determine

whether

capital gains tax really does just
this.
'
'
Because
be

of risk

Iney encourage the flow of capi-

and

fa 1

breeds

dam

it

it

is

self-imposed,

it

proceeds

of

the

in

sale

another

single stock investment within 30
days. Instead of paying a tax, the
investor would carry forward the
tax basis of his old stock holding
to

his

purchase. If the orig¬
capital plus the'gains on his

inal

new

fully
with

securities were' not
reinvested
in
compliance
equity

these conditions, the

unreinvested

taking nq ac-' gain would be taxable under ex¬
capital
gains tax
provi¬
tion. It therefore locks the present isting
investor in, and reduces the pool sions. There is ample precedent

can

avoided

by

capital available for

more

newer

venturesome

projects. It
inaction, in

for

this

has

existed

proposal.
the

in

The
tax

''

v*

:

..

up.

Doub.e Tax On

Dividends, Capital

'

Whose

Are

Corporate

New
m

Funds

?

u

t

What

bui dens
'

tnern.

we

Growth

Growth investors
do
•

restrictions

confine

other

words,

Why,

hhou.ld

Rcaidred'for

be

in

worried

about

the

investor.

Since
snare

there

stock

is

essentially

a

in corporate earning power,
are

only

two




ways

it

can

inertia

and

^ °ndP greate"®moWmt

As °f this mon™C American
investors have over ?200 billion of
unrealized capital gains. This.is

since

farms and other real estate,
out

incurring
the

a

with¬

capital gains tax

transaction.

In

are

unwillingly substituting the
for good judgment and
holding some stpeks long after
they really want to. They are iiir

the sale of

calendar

1954

certain

exchanges

ance

policies

1951

this

were

aHvertentlv

of

available

diminishing

stock,

supplies

intensifying

concept

was

treatment.

expanded to include

personal residences. In

In

of

insur¬

given tak-free
addition, the tax-

free exchange of stocks in various

intra-corporate

y

A v..1

*

transactions

•,

j*

"'■'"i"■

-

..

a-comparable trend

.V -.V; '{"'A'/'

1'

scheduling only
week due to'the"

bid for 613,000-unit passenger car production this;
seems
relegated down nearer the 585,000-unit level,

month,

"Ward's" concludes.

■

A

.

7

*

■

in the cost of*
and February after the
^ 1" ; :1 ' y V
of Labor Statistics said the November index rose
record high of ,117.8% of the 1947-49 average. ;
forecast

officials

Government

downturn

a

living for December and possibly January
straight month of increase.
*
,

The Bureau

,

to

new

a

appearing

now

missioner Ewan Clague of

on

1957

declining meat;

and

cars

the Bureau of Labor Statistics, declared.,.

continued, the expected downturn

He

number

will

factors

of

and

will be slight .because a

tending to counteract these

be

declines.

prices, which were up 1.1% in November, will head higher;
he added. The recent freight rate increase given to. the nation's
Fuel

effectAhrsaid. -Thedmpact'Will
he declared,-but in their4
influence- on "many other items." «.A '
yV
The November index rise brought a three" cent rahThrour yvage "
railroads also will have a "broad

much in the rates themselves,

be not so

boost'to steel workers effective Jan."!, and
the

pressure

for

steel price "boost.":

a

'

"■

<•••

■

'wUL^
? 'f

•••*•'■

••"-

ft,—

permit values in November registered a seasonal
decline for the month, but remained above the corresponding "1955
Building

:

Permits issued rn 217
November came to $489,803,866,
a
gain of 14.1% above the $429,366,384 for November, 1955,
but a drop of 8.5% from the October figure of $535,228,128. '..V j
Building plans filed in New York City during November con¬
tinued at a high level and totalled $74,795,675, up 34.1% .above the
$55,764,815 a year ago, and 3.5%-more than October;.wit'd $72,Bradstreet, Inc., reported.

month, Dun &
cities

including New York, during

"251,619."..

'

.

.

:•/

.

.

-

/V-

•:

.

,

eight geographic regions recorded increases ever
November last year, with best gains supplied;feyiNe^;;Ei4gland,'-,
Six

of

the

60.3%- and Mountain up 54.4%.

up

\

.•

....

.

-

.

A I

,

v.
;•

.

■:Is:

;

Expected to Yield 9G.3% of
"1/1
Capacity This Week
01

Steel Output
:

than ever be¬
magazine,'.f'the national metalworking weeklv. re¬
ported on Monday of this week.. Every country except the United
States is turning out more steel than it did in 1955.
{ J
World production this year will total 310,048,000 net tops
steel for "ingots and castings, according to the publication."\This
is a 4.7% increase over the preceding record of 296,107,695 .'tjpps
The

fore

is

world

producing more steel this year

"Steel"

.

made in 1955.
The

for 37%

in

-i

>

-

United

States,

-

•

-

'tim-

producer, is accountjjng
world output in spite of
This is its second best year. Produc¬

world's

largest

115 million tons of the 1956

or

the midsummer steel strike.

on

'7'."

•

tion

1921

potential growth mopey that is to
a great extent locked-in. Investors

>

Thus, its

concept

law

it has been
possible to exchange like propertysuch
as
commercial
buildings,
Since

*

'

1

1921 and has been broadened over
years.

' r

and are evidencing

of output last week

the

or

the

--"•*

clothing prices were expected to outweigh increases in other, '
items and force down the total index level, for December, Com¬

An

six

to

and

concept would rec¬

a

that

<

are

?.

7-

v'

Discounts

cor

where

shall

ourselves,

investor?"*-.

American

will¬

we

"Whatever, happened

the sales front.

0.1%

-recognizes fully the need
harshest
on suc¬
has a long-term capital gain with-.
stimulating a steady, long- cess this country has ever devised.
out incurring an immediate tax —
flow of capital'through in- This tax
imposes a levy of up to
providing he fully reinvests the.
dustry-s arteries.-'_
i-r
* "
,
z 25% on : the gains realized from'

program

ask

•

devised

we are

think

I

<

for brave

4

-year-end holidays.

A.

locked-

deferred treatment

vested'. Such

'*

60.5%

third

concept calling

a

capital gains that

sells

is

This

code.

recognize

would

-Z*.

approaches.

of helping free

way

ognize

area

from

those

ideas

Revenue

,dend tax * exclusion from $50 to

$100, and by raising the dividend
where we hold ourselves to. be; tax
credit
from
4%
to
10%.
experts, there is much we can still ; Eventually, this credit should be
learn

truth

to

According to "Ward's" the auto industry is
three-day operations this week and the following

capital might well be through,
a
modest revision to the capital
gains tax section of the Internal

lor all practical purposes; and the Exchange feels they do. And we ,
double tax on dividends has been ' believe further relief from
this
eased
so
tha^ " corporations are dampening tax can be achieved
encouraged to .pay out/ a greater; effectively by increasing the divi-y

.•

have-

never

on

cap¬

in

one

compared-to a maximum surtax;
Don't
these
results
make
a
rate of 91% in America; the capistrong case for going further in
tal gains tax-has been abolished the
same
direction?
The
Stock

•SFJ5J® of their.-earnings, r > \

practical

of

new

lieved of double taxation,

coincidence,
I
think,
that
the
vjsitor to Germany now finds the
maximum
income
tax
is
55%,

a

by,

the

of

them offset any loss of revenue
break the deadlock between the
caused by changes in} the law.
Moreover, for those still under the crushing demand for new capital
and
the repressive taxes
which
illusion that it was the wealthy
limit it.
who were most affected, note that
But today, we have reached an¬
the investors who gained most

six

achieved

ing -to live

realities;

these

of

»

...

elimination

able-and

Very much

had

If this is

men.

was

men

neces¬

German

reaching for the
months

£

.

easy-job. Ac.-

an

initially by brave

.economy

Continued from page

violent emo-'

a

does

be

doctrine

American

course,

unable to expand. In
is no reason

or

—

complishing it will-take a patient
and
imaginative -people. But as
Gerald
Johnson
has
said,
the

financial terms, theie

exemption for the first $50 in ital
gains tax has been achieved,*;
dividends and a 4%. tax credit on the New York Stock
Exchange
remaining dividends. Sinde then has
proposed a reduction in the
we have witnessed a strong rise'
holding period from six months
in equity financing and a marked
to three, and -a reduction in the
increase in the family of Ameritax bite itself from a top of 25%
can shareholders. Cash dividends
to
12%%,
The
Exchange
has'
tax on corporate dividends,
also rose in 1955, and it is imporurged these revisions as reason¬
wisdom I told him he was tant to realize that taxes paid on

Ip my

of

cramped

will not

It

locked-in,

itself

find

not

must

American

:The

tration.

that is required.

age

swift

capital

part of the basic pack¬

are

a

look

It

granted.

was

that

of

ahead,

period

gains

capable of

subtle dangers—one of the
of which is probably frus¬

worst

pro¬

and

comes

record. In mid-1954, a modest re-

two

a

official, then
\isiting New York, told me of his'.
plans to boost output; He aimed
to
accomplish this, he said, by
slashing income taxes, by elimmating the capital gains tax and
i>y
substantially
reducing
the
A

years.

to

The

of

these

challenges however demand¬

poses

for. „full

reinvestment

ing.

they recognize

own,

its harsh and destructive nature.

and

treatment

achieved
above all

however

changes

meeting
and

problems

sarily bear on the real issues. The
charge • second, is that any changes that,
double, tax ; are forthcoming - necessari ly • de-..

to broad

against

dividends,

on

that goes

weeks

seems

level

to

Perhaps the best illustration of
is to be found in free Gcr-

this

back

similar to

companies forced into financing
their expansion by relying too
heavily on bonds, or debt securi-

to pumping venture

comes

iboney into our economic

money-raising

sweeping pro¬
But the real danger in double gram. It is another thing to bring
taxation lies ahead—in the pros-. it about. In the case of the capital
pect that investors may be dis- gains tax, there are two things
couraged away from stocks, and of which we are aware. The first

constructive
encourage the flow
of venture money. It was surpris50g,
also,
to
realize
that
in
America, where we hold risk-takiag to be the essence of enterprise,
we are
in many ways backwards
embrace

with

was

gov¬

taxes,

tax-deferred"

American^

—

gains

capital

erning

double

.the

reduction in

a

holding period

has

because,

eminence

its

rate and

the

that

system

else, it is adaptable

from securities transactions. Faced

portions the burden of earning

twice ?s mu,_ch 111 ord?r to f>u} a
surprising
to
me
that
nations dollar in a shareowners pocket as
which do not pride themselves, as would be required if debt linancv/e
do ,on the progress of their
mg such as bonds and loans weie
free enterprise economies, should
usedthe

all

have

again

prove

economic

on

the

would

it

finally,

ofs, investing.

hazards

relief v from

dividends,

tax

closer

And,

the

Further

meeting industry's capital

needs.

in which

arbitrary

pound

so

step

will have to set

t

air, and for removing
taxes that com¬

investment
those

sale of equity

giant

a

we

they are more encouraged to in¬
vest. This "calls.for clearing the

in

towards

—

that desnite our progress we do

j

,

would

It

us

move

we

—

vot

is

energize
flow of venture capital as to

the

Of 55 nations

this

Treatment

his judgment

and

purchase

investors.

nation's

the

about

Specifically,

give

exercise

securities.

drastic

have

accomplish. It would, I
the investor free

to

believe,
rein, to

encourage

capital.

far

likely

be

the

of

in¬
Apart from its inherent injustice, have surveyed, 46 countries
mansion.
it places shareholders at a dis- cluding the financially sophisti¬
capital. They face inflation and advantage compared to the owners cated nations of Canada, Belgium,
problems of tight money.
of some 3.5 million unincorporated Switzerland, Great Britain and
impose no capital gains
-Out of these
facts comes the businesses who pay only a per- France
iitird and strongest impression. It sonal income tax. It places on cor- - penalties on the public's profits
i

.

out to create the climate

what

wonder

may

finance; 'the >'future

to

and

corporations

Reinvestment

Full

and

could

plight

investor

renewed

a

constructive

most

permanent

You'

This is per¬

happen. For there

by the same token, we will
to do a lot more worrying

But

investment-minded people.

the capital gains tax.

ever

soundly.'They are also interested
in doing so A * '

of

needs

immediate

the

equity-minded

most obvious is the elimination of

great industrial exThey are short of growth

planning

ere

muscle

another application of a
procedure which has a basis in
law. But it is one that can help
meet

Double taxation on dividends
has
a
double-barreled
effect,

businessmen

European

own.

our

Funds;

Gains Tax

this should
are,

simply

if

from the sale of stock,

problems

remarkable resemblance to

a

for

What,- then, is the solution? The

proposal that

economic

Europe's

bear

Spur

Investors ; Reinvest
Funds Within 30 Days
*
-

there

Perhaps

faith.

good

Venture

of

to

Thursday, December 27, 1956

...

in
summary,
millions
of
Americans who have the financial

for

Thus, what I have
equity securities, is

years.

many

Needed

Capital

gest

is return a profit: it pays dividends
or its value in the market inap international court of arbitracreases. In Americca today, we
tion be established to enforce a
barricade both these avenues to
Magna Carta for private property risk-taking-^by leveling a double
iavested abroad.
*
/
■
tax on corporate dividends and by
The second impression today's
imposing a restrictive and inflextraveler brings home is that many Jble tax on capital gains realized
ia

;

Revision

allowed

been

has

zations

reorgani¬

corporation

certain

in

outlined

Aiding the American Investor
With a Better Investment Climate
merit

Financial Chronicle

The Commercial and

(2820)

2&

1955

was

117,036,085

net tons.

-

steel producer

this year.

Even
United States.
Russia's output is 53,700,000 tons or 17% of the world total.
The United States has slioped percentage-wise in the world
total, although she has gained tonnagewise. In 1946, the United
States turned out 66,602,124 tons, 55% of the world dotal.
World
production in 1956 is a little more than 2% times that of a decade
'Russia

so,

is

the

second

largest

she is turning out less than half as much as the

'
recovered remarkably from her 1P4P nos t'on as
a
vanquished nation when she turned out only 700,000 tons Of
steel.
In 1956., she will have 11,700,000 tons. , *
V
"A -The West Zone of Germany will make 25,700,000 tons in
ago.

.•'J Japan1 has

Volume 184

Number 5598

The Commercial and Financial

...

Chronicle

compared with 3,318,448 tons for all of Germany in 1946.
Zone of Germany is producing 3,200,00(1 tons in 1956.

1956,

(2821)

last week and

corded

..

reflects

The Soviet

again

on

June 5,

rise of 3.2% "over the $5.96 of

a

1956.

The current figure
this time.

Continued from page 15

year ago at

a

29

'

"

.

Russia's

Despite

rise

have

countries Will

steel

in

bulk

the

of

the

Higher in wholesale price last week

production, the Free World
output this trade paper de¬

coffee.

clared.

"•

Upward pressure on steel prices persists in the United States,"
scattered upward revisions in price extras.
"Steel's" com-

'

posite

ton where it
1

The

{

-

v

reached in the week of Dec. 5.

was

The American. Iron

)
4

been

net

a
t

operating:

rate

of

#

Steel Institute announced

and

companies

steel

-

Wholesale

96.1%

having

of

/

■

that

making

for

capacity

entire

the

industry

will

be

"

street
,

of

1956, equiv2,370,000 tons of ingot and steel for castings as compared

alent to

■

based

:

t

.

For the,like week

duction 2,489,000

*

month

a

tons.- A

- •

1, 1956.
the rate was 101.1% and prd- V
the actual weekly production

of *128,363,090

annuals capacity

on

ago

year ago

tons

of Jan.

as

The operating rate is not
comparable ; because capacity is higher than capacity in 1955.
The percentage figures for 1955 are based on an annual capacity of.
at i 2,309,000 tons

was placed

.

.

.

125,828,310 tons

as

or

95.7%.

of Jan. 1, 1955.

"

Electric -Output in Latest
:

.

>r

industry for the week ended Saturday, Dec. 22, 1956,

power

The

-

weekly reporting member banks.
In

.

not affected

was

announcement

The volume of

sharply

last

week.

industrial
while

their

noticeably.

other

I

week's

past

output

rose

kwh.

5,000,000

that

above

times

ago.

000,000

"" 1

in Week Ended Dec. 15, Declined 2.9%

1955,

74,773

cars,

or

Christmas

Holiday

For

v

the

latest week ended Dec. 21, 1956,
according to "Ward's" Automotive Reports," was pared 3.6% in
preparation for the long holiday week-end.

that

assembled an estimated 152,588 cars,
(revised) in the previous week. The past

produtcion total

of

and trucks

cars

Last week's

-

first

and

19,103 trucks

in the United States.
and

week

19,103

Canadian
•.

,

cars

and

year

output

1,612 trucks.
cars

a

A

2,033

trucks

for

and

the

sharp
trade

1957

some

of

a

industrial

failures

decreased

to

of

214

in

the

week

a

of

year

Sixteen

ago.

$100,000,

.

more

.

declined to 175

concerris 'failed with liabilities

as

toll fell to 106 from 118 and in commercial service with
to

16 from

26.

construction
cerns

were

among

a

decline

42

and

from

47.

commercial service

manufacturers

and

than

a

wholesalers

year
was

ago,

below

while the
the 1955

that

this

dealers

reported

passenger

cars;

a

smallest

last'week

of

in

a

volume

as

were

Increases from

a

children's

clothing,

by

concluding

sharpest rises in the Pacific, New England, and East North
Central States. The most marked decline from 1955 occurred in

continued rise

week, but continued below
total

dollar

volume

of

a

retail

increased

their

buying

lamps, but sales of automatic
dishwashers

In

the

the Middle Atlantic States, where a decrease of

28%

was

reported.

Wholesale Food Price Index Eased Moderately Last Week
wholesale food

price index, compiled by Dun & Brad-

street, Inc., moved lower the past week and registered $6,15 on
Dec. 18.
This compares with the year's high point of $6.18 re¬




to

may

I

say a

per¬

am not
posing here
I do not pretend to

to

answers

questions.

these

think

I

it

diffi¬

would

least two years study
monetary commission, aided
first rate staff to begin to

a
a

to

be

I

answers.

claim

do

qualified observer .of the

a

financial
Does

year

My

buying

new

scene.

Not

-

Want

record

Immoderate

I

ago.

am

trade

were

of

no

sets,

radios

laundry equipment, refrigera¬

unchanged.

Department store sales on a country-wide basis as taken from
Reserve Board's index for the week ended Dec. 15,

(revised)

In the

was re¬

of trade

of

Board

credit, I have, I think,!a clear
of having encouraged the

broader

understanding of these
independence

matters.
the

»

of

j

I

j

under

As for the

back

the

compulsion,

no

bonds.

that

out

otherwise,
test

far

Fed—as

pointed

to

I showed that in

the

1950
was

legal

or

Government

peg

between

as

Fed

Fed

any

and

con¬

the

Treasury, the Treasury could not
hope to win. I urged the Federal
Reserve to take its courage in its
hands and act independently.

"The

Board

of

Governors had

speech I made at
printed and
sent

that
all

time
over

a

re¬

the

country, and the following year
they did assert their independ¬
ence.

In

1956, increased 1% above the like period of last year.
In the
preceding week Dec, 8, 1956, a decrease of 2% (revised) was
reported. For the four weeks ending Dec. 15, 1956, an increase
of 1% was registered. For the period Jan. 1, 1956 to Dec. 15, 1956,
the index recorded a rise of 5% above that of the corresponding

raising

some

tem.

1955.

or

record

According to the Federal Reserve Board's index, department
store sales in New York City for the weekly period ended Dec. 15,

period in

thirty

cials who try

observers.

t

nearly

I think, that
of the Federal Re¬

enemy

of any public .offi¬
honestly arid accord¬
ing to their best judgment >to
serve us all.,So far
from:being op¬
posed to monetary management,
including the quantitative^ coritrol

in

television

over

should prove,

years

cars

Federal

estimates

'

I

expert.

arrive at the

toys,

10% to 12% ahead of the similar period in 1955, according to the

the

the

require at

total

Retail sales volume in New York City the past week advanced

unchanged in the West South Central
ago prevailed in five regions, with

to

comes

Moreover, many
"loaned up" to the limit
they consider prudent.

know the

Christmas

For the four weeks ended Dec. 15, 1956, no change was
recorded.
For the period Jan. 1, 1956 to Dec. 15, 1956, a gain of
3% was registered above that of 1955.

year

about

come

are

an

by

ported.

States, down to 3 from 19 and in the Pacific States, down to 79
from 86.
Casualties rose in the New England and East North

The

In

10

ef¬

markets.

sonal word.

Close

1956, advanced 2% above those of the like period last year.

regions, but

in

boosted

ago.,

year

preceding week, Dec. 8, 1956, a decrease of 3%

regions reported declines
during the week. The most noticeable decreases occurred in the
Middle Atlantic States, down to 55 from 79, in the South Atlantic

Central

con¬

say

"governments" especially
prices and in present

of what

dealers' inventories of

and

the

of the nine major geographical

Six

States.

above

and

among wholesaling con¬
More businesses failed in retailing,

level.

*

buying

consumer

tors

Casualties

~

1

in

especially,, interested

used

Shoppers

Manufacturing failures dipped to 36 from 44 and

unchanged at 14.

construction
toll

to

the

to

is not to
will not be

current

banks

CCC loan entries in the

yet

grab

may

have

selling

serve

against 23 a we^k'hgo.
Most of the week's decline centeredj in retail trade where the

excess

dropped

not

hold very
because financial insti¬

now

thin

plan

result if the farmers

may

program.

many cases

did

end of the ropd when it
;

bank

money

It

tutions

a

the period ended
Wednesday of last week was from 1% to 5% higher than a
year ago, according to estimates by Dun & Bradstreet, Inc.
Re¬
gional estimates varied from the comparable 1955 levels by the
following percentages: New England —1 to +3; Middle Atlantic
—2 to -j-2; East North Central, West North Central and Mountain
4-1 to 4- 5; South Atlantic and Pacific Coast 43 to 47; East
South Central 4*4 to 48; and West South Central —4 to 0.
Although apparel stores reported a noticeable rise in the
buying of women's sportswear, dresses and children's clothing
volume in cloth coats, furs and suits fell somewhat.
While sales
of men's apparel advanced last week, purchases were below thoSe'
of the comparable 1955 period.
!

involving liabilities under $5,000, totaled 39, reflecting no change
from the preceding week, but were above
}he 31 of the compar¬
in

crop

soil

other

the safe side.

on

course,

tight

soon

estimate.
the

he

money

of

fective.

on

and slightly exceeded the 213 in 1954. Fail¬
14% below the prewar level of 249 in the similar week

1939.^ 'iI-'-)!i
■
Failures involving liabilities of $5,000 or

and

The

from 210 last week, but moderately exceeded the 150 of this size
in the similar week of 1955.
Casualties among small businesses,

able

that

than this.

year

and

see,

Solutions

new

rose

year ago,

were

under

acre

schools

policies, has in

This,

extent by the announcement

some

build

need—just to be

at

per

>

money

year.

week ended Dec. 20 from 249 in the previous week, Dun & Bradstreet; Inc., reports; However, fhe total remained noticeably above

ures

and'

season

>

policy thus far
home
builders, small
and municipalities that

borrowed
■

The call for major appliances,
linens and men's apparel was below that of the same week last

Business Failures Decline in Latest Week

the 18T

next

in¬

fashion accessories.

Automobile

and

rate

18-month

•

rise

|were

trucks.

Commercial

cotton

moderately

shoppers

cars

loan

largest

It has not, as far
touched the capital
goods boom. It may actually havd
stimulated, rather than curbed,
business borrowing because the

ago.

lower

4'

*

can

money

Hog prices
weeks, and

Volume Rose Sharply in Past Week to
Moderately Above Like Week a Year Ago

gilts and

9,710

at

payment

December

and

placed

In the previous week Dominion

and 1,168

of

plants built 10,587
comparable 1955 week 6,100

was

selling and there was a
oils.
The prices for both

substantially higher next

'

Trade

retail

week

of *a

of

prudent corporation executive,
reading and hearing about tight

heavy

year

stimulated to

was

week

were

ago. '.

last

be

may

to

cult

23,479 trucks made
This compared with 24,117 in the previous
reported there

a

advanced
.

in vegetable
soybean oil dropped noticeably.
marketings the smallest in eight

rumors

smaller

assembled.

were

Last week the agency

to

weeks.

by 5,843 cars, while truck output declined by 638 vehicles
during the week. In the corresponding] week last year 150,881
cars

in

participation in the soil bank

week

tight

hurt

I

as

•

-

ds

half

improvements.

sider the higher payments sufficient inducement to increase their

output decreased below that of the previous

car

and

average

be

A

176,067
preceding

the

decrease of

a

the

would

amounted %to

6,481 units below that of
week's output, states "Ward's."
or

declined

with

reaction

Buying

,

units,

The

has

all-time

season

first

record.

business

prices

the

half

a

loans

Results of Tight Money*

was

small increase in the most recent official crop

Last week the industry
week's

the

bank

....

billion—the

Although inquiries for cotton print cloths picked up some¬
what, the prices dipped fractionally.
Trading in. cotton gray
cloths generally was smaller, than usual.
The prices for cotton futures weakened, possibly-reflecting

Car and truck output for the

compared with 158,431

buying

considerably lower than

_

Extended

than

in

■

.

crease on

'

reaction

oil

stable,

were

■

U. S. Automotive Output Cut 3.6% in Preparation

futures

sympathetic

abovo- the

11.6%

2%

Lard

corresponding week in 1954.
»

smaller

the producing countries.
Cocoa
production for the 1956-1957
higher than in the previous season.

cottonseed

of

tons

'•

by

Loadings for the week ended Dec. 15, 1956, totaled 716,652
cars, an increase of 7.520 cars or 1.1% above the corresponding
increase

9,000,000

in

In the eighteen months ended
last June 30, bank loans rose
$17-

is expected to total 265,-

crop

much

business

and

:

>

world

about

an

rye

three

over

as

need

slightly;

Loadings of revenue freight for the week ended Dec. 15, 1956,
were 21,105 cars or 2.9%
below the preceding week, the Associa¬
tion of American Railroads reports.

and

•"*• :*

sugar

nounced

Below Prior Period

week

just

and

nearly-

year.

*

routine the past week, although
spot sugar prices advanced with an increase in trading in the
international
markets. Coffee prices rose sharply in heightened
trading after new programs of support to the growers were an¬

*

1.955

wheat

tons,

Domestic

week in 1954.

Car Loadings

short

peak in 1952.

12,220,000,000 kwh.; it increased 611,000,000 kwh. or 5.3% above
the comparable 1955 week and 2,794,000,000 kwh. over the like

4

combined

declined

corporate

year

obtained

was

According: to revised estimates by the Department of Agri¬
culture, the output of bread grains in 1956 will be the second
largest on record.
J
The

in

told that in the first half

obtained
■

,

of

$3,-

fell

billion in the

this

:

The

Govern¬

down

investments

deposits

■

a

am

of

prices eased in slow trading; some observers thought
; that a noteworthy increase in flour buying would occur only
with
further
price reductions., The export demand for rice

the previous week, and at the same time established a new alltime high since the week ended Dec. 15, 1955 when output reached

of

went

securities

while
half

Flour

•

$4,600,000,000

holdings
and

an

and

their assets from Government
and
other securities to loans. Mean-

trading on the Chicago Board of Trade dropped
Average daily purchases of grain and soy¬

;

last

$709,000,000.
short, the banks simply shifted

In

%

;

of

securities

700,000,000
>

ended

commercial

loans

ment

of

high.

their

.

.

future? declined to 52,000,000 bushels, compared with 80,000,000 a Aveek earlier, but was noticeably above the
40,000,000

remained

twelve months

21, these banks showed

increase in

bean

year

the

Nov.

higher soil bank payments for bread
grains was followed by brisk buying in the middle of
last week,
but volume later tapered off..,: Grain
buying for export was slow.

i was estimated at 12,225,000,000 kwh. (approximate figure), a slight
increase above the week ended Dec. 15, 1956, according to the
•Edison Electric Institute.

Narrow

a

,

.

The amount of electric energy distributed by the electric light.

and

*

Southwest, buying

'

r

Approximate Previous Week's Ail-Time High Record

tVi/'

Monetary System

prices at the wholesale level.

daily

bushels a

Period Expected to

Questions About Our

pourid*ef

per

Except for rye prices, which gained slightly, the prices for
grains sagged. Although there was considerable
publicity given to
the reports of drought in the Winter wheat
growing areas of the

with 102,6% of capacity, and 2,525,000 tons (revised) a week ago.
"
The Industry's ingot production rate for the weeks in. 1956 is
.

price

Commodity Price Index Moved in

.

96.3% of capacity for the week beginning Dec. 24,

v

Facing Troublesome

cocoa,

Dec.

on

steel-

the

oil,

^

•

.

wholesale commodity price index closed at 299.79
18, slightly lower than a week ago, but higher than last
year's index of 297.66 (1930-1932=100)...
!
,
\

the

average

an

rye, oats and

cottonseed

Range and Closed Slightly Lower the Past Week
Fluctuating mildly within a narrow range, the Dun & Brad-

"

*'

flour,

W£i;e

sugar,

foodstuffs and meats in general use and its chief function

raw

67

ton

gross

has

barley,

corn,

is to show the general trend of food

publication's composite on steelmaking scrap prices
cents to $64.83 a gross ton.
The record of $66.17 a

declined

i

steel remains at $137.66
holding since early November.

base prices for finished

on

were

The index represents the sum total of the

31

with
:

Lower

steers and lambs.

eggs

to

now

questions, I

trouble¬

some
am

not seeking

injure the Federal Reserve Sys¬
On.

that

if

moderate

questions,
will

.

the

we

find

contrary,

cannot

men

soon

I

believe

persuade

to face up to these

will be too late and
ourselves
confronted

we

with immoderate solutions.

■;

to

The Commercial and Financial Chronicle

(2822)

.

.

Thursday, December 27, 1956

.

* INDICATES

Securities
Aluminum Co. of America
Dec.

a

(1/9)

retire

$50,000,000

short-term
Underwriter

New York.

Boston Corp.,

ITEMS

REVISED

ISSUE

—

filed

21

Price

bank .loans
The First

of

and for construction program.

•

PREVIOUS

Houston, Tex.
• Drexel Furniture Co., Drexel, N. C. (12/28)
100,000 shares of common stock (par $2). - Dec. 12 filed 190,000 shares of common stock (par $2.50)
supplied by amendment. Proceeds—To*to be offered in exchange for common stock and class B
common
stock of Heritage Furniture,
selling stockholders. Underwriters—White, Weld & Co.,
Inc., High Point,
New York; and Rowles, Winston & Co., Houston; Tex.
N. C*, and for common stock of Morganton Furniture
'
Dec.

Price—To

ceeds—To

Registration

ADDITIONS

SINCE

if Brewster-Bartle Drilling Co., Inc.,

-

$125,000,000 of sinking fund debentures
be supplied by amendment.
Pro¬

filed

14

1982.

due

Now in

To

—

be

;
°
Co., Morganton, N. C.ron the following basis: lJ/» shares
Brookridge Development Corp. 71.
v
>■
:
of Drexel stock for each Heritage share and
v Oct. 29 (letter of notification) 300,000 shares of common
three-quar¬
Ltd. :
ters of a share of Drexel stock for each
Morganton share.
■Nov. 23 (letter of -notification) 3,000,000 shares of com¬ i stock. Price—At par ($1 per share) Proceeds—For work*
inc Coital^Office- ©/ iz 62nd St'S dfiewo^d
mon stock
67-12 ozna ot., itiagewooa, Oudens-^':These offers are contingent. upon acceptance of not less
(par five cents). Prioe—10 cents per share..
mg capital,
oiiice
veiieens,
one/.
nntdon^ina ,.iocc n ckn^r
than 80% of <ka 665 outstanding, class B shares of Herit¬
the
N. Y. Underwriter—Wagner & Co., New York.
Proceeds—For mining expenses and development of oil
age and of the 80,000 common shares of Morganton; acid
properties. Office — 901 Sherman St., Denver, Colo. >
Burma Shore Mines, Ltd:, Toronto, Canada/
not less than 64,992 of the 70,910
outstanding class B
'Underwriter—Laekner & Co., Denver, Colo.
July 26 filed 600,000 shares of capital stock, of which
shares of Heritage. Underwriter—None.
•
1
American Federal Finance Corp., Killeen, Texas
500,000 shares are to be offered publicly, and 100,000
/ 7Economics Laboratory, Inc./' (1/7-11)
shares to promoters. Price—At par ($1 per share). Pr«^Sept* 5 filed 40,000 shares of class B common stock (par
Dec. 12 filed 100,000 shares of common stock (par
ceeds
For equipment, exploration, drilling, working
$i).
$5) and 400,000 shares of preferred stock (par $5) to be
Price—To be supplied by amendment (expected at about
offered in units of 10 preferred shares and one common'
capital and other general corporate/purposes. Under¬
$15 to $16 per shareProceeds—For general corporate
writer—To be named later.
■/
Share. Price—$55 per unit. Proceeds—To purchase used
,

,

Minerals,

-Amalgamated

t

.

..

t

.

.

♦

i

•

<■

■

—

»

car

paper and to extend the
'the field of new car financing.

"Centers

American "Monorail

'Dec.

Co.,

Underwriter—None. J. J.

(1/7-11)

Cleveland, O.

*

Corp., Philadelphia, Pa.
July 30 filed $8,000,000 of 5^2% sinking fund debentures
due Aug. 1, 1971, and 1,600,000 shares of common stock
(par one cent); subsequently amended to $4,500,000 of

■Fain is President.
•

>

,

debentures.

chasers thereof

Underwriter

opportunity to rescind their purchases

tional

capital

per

&

Co.

Incorporated, Philadelphia

common

by it at

$1.10 per share.

share,

filed

21

Price

964,454 shares of

To

—

be

supplied

by

stock

common

(par $5).

development;

Corp., the selling stockholder.
Underwriters—Eastman Dillon, Union Securities & Co.,
New York; and Stephens, Inc., Little Rock, Ark.
Arrpco Steel Corp.

18

Dec.

filed

porate

Chinook
At par

Atlantic
Dec.

Crty Electric

filed

12

1987.

Co.

a

($3,000

per

common

share).

of

(1/23)

ioto

Center and

•

"

■

Inc.

Jan.

Shields & Co.

thers; Blyth & Co., Inc.
to

up

11

a.m.

(EST)

One Wall St., New

(jointly); Lehman Bro¬

Jan.

23

at

Irving

Trust

working

Co.,

York 15, N. Y.

all

amount.

Proceeds—To

retire

its affiliates for

to

pany

15, 1968. Price—100%
indebtedness

money

the

IjVieill, Blauner

com¬

Dec.

borrowed for working

due

for

amendment.

Proceeds

21

filed

Jan.

1,

stock

the

the

supplied by

For drilling oil.and gas wells.
White, Weld & Co.^New York; and
Rowles, Winston & Co., Houston, Tex.,.

Underwriters

.

.

.

retire

latter

—

*

Postponed.

.

subordinated

1966; 10,000 shares of 4%

:

debentures

cumulative

pre¬

(par $100) and 150,000 shares of common
Price—At principal amount or par value.
capital.

Office
.

.

—

Aurora

(letter of notification)
Price—At

&

common
a

unit

chase

filed

stockholders in units of 25 preferred shares and

purchase five common shares. Price—$25.50
(each warrant will entitle the 'holder to pur¬

common share at any time nrtorVte' Dec.
31,
$2 per share). Proceeds—To
repa^feifcrtgages, to
$1,312,500 of five-year 6% sinking fund debentures, and
for further acquisitions and working capital. Under¬
writer—To be named by amendment.
J
^
one

1957 at

t

,

J

;

•;

v

Private Wires




to

alt

offices

Cleveland

($1

300,000 shares of

share).

per

cent).

Price

—

10 cents per share.

stodt'.(|jar-xm«

Proceeds

—

For

ex-

ploration, development and acquisition of properties and
working capital. -Underwriter—Columbia Securities
Co., Denver, Colo.
^

for

.

/

;

common

Proceeds

—

For

.

tion.

Underwriters—Paine, Webber, Jackson & Curtis,
Yorkf,u and Mitchum, Jones & Templeton, Los
Angeles, Cqitf.
New

•

-

•

,

..

,

General

Telephone Co. of Michigan (1/10)
Dec. 18 filed 160,000 shares of $1.35 cumulative
preferred
stock (par $25), to be offered in exchange for the out¬
standing shares of $2.70, $2.75, $1.44 arid $1.35 cumula¬
tive preferred stocks of Union Telephone. Co. on the fol¬
lowing basis: For each share of Union $2.70 or $2;75 pre¬
ferred, two shares of General preferred, plus $2 in cash;
for each share of Union $1.44 or $1.35
preferred, -one
share of General preferred, -plus $1.25 in cash. DealerManagers—Paine, Webber, Jackson & Curtis and Stone
& Webster Securities

Corp., both of New York.

Gold Mountain Lodge, Inc., Durango, Colo.

Aug.
stock

23

filed

(par

common

.of Texas

common

'

'

Telephone Co. of California (1/10)
cumulative preferred
(par $20). Price—To be supplied by amendment.
Proceeds—To repay bank loans and for new construc¬

5,000 shares of class A voting common
$1), 295,000 shares of class B non-voting

stock

due Dec. 31,

Collins,

July 27 filed 4,000,000 shares of

-

13 filed 500,000 shares of 5%

.

Douglas Corp.,; Fort
San Francisco

par

;

stock

Underwriter—L. B. Schwinn

warrant to

per

"

.

General

Co., Cleveland, Ohio.
29

•

working capital. Office —^ 1115 South Washington St.,
Marion, Ind. Underwriter—Sterling Securities Co., Los
Angeles, Calif-.
-

Nov.

of

Road, Solon, Ohio.

•

'

Price—$500 per unit. Proceeds—For expan¬
and working captal.
Underwriter —None named.
Offering to be made through selected dealers.

& Mining Corp.,
Denver, Colo.
2,500,000 shares of 6% convertible nonpreferred stock, first series (par $1), and
warrants to purchase
500,000 shares of common stock(par 10 cents) to be offered for subscription initially by

Philadelphia

v*

warrants.

.

Diversified Oil

Chicago

Inc.

sion

Ithaca, N. Y.

cumulative

.

.

..

;

Juices,

Credit, Inc., Washington, D{.;C.
Aug. 17 filed $2,060,000 of 6% subordinated sinking fund
debentures, due Sept. 1, 1971, with detachable warrants
to purchase 160,000 shares of
participating preference
stock, to be offered in units of $500 of debentures and 40

account

account

Aug.

Pittsburgh

Office—New

General

.

Boston

subordinated

stock.

,

$1,200,600 of 4%

—

New York

a

firm.

Dec. 3

for

of the company and
16,500 shares for
Cyril J. Bath, the selling stockholder.
Price?—$6 per share. Proceeds—/To reduce outstanding
mortgage loans and for working capital.' Office—32420

if Brewster-Bartle Drilling Co., Inc., Houston, Tex.
filed $2,000,000 of 5% subordinated
convertible
Pricc-r4To' be

amendment.

improvements;1 and

the

Fruit

Dec.

Dec. 21

1972.

-

of

Cyril Bath Co.
6 (letter of notification)
33,000 shares of common
stock (par $1), of which 16,500 shares are to
be offered

Office—Washing¬

Distributor—Automation Development Secu¬
rities Co., Inc., Washington, D. C.

1,

York.

Proceeds—For working
Underwriter—None,
i

ton, D. C.

debentures due Jan.

by

as

stock (par $5).

Automation Development Mutual Fund, Inc.
Aug. 24 filed 300,000 shares of common stock. Price—At
investment.

(par $1) to
stockholders at

capital.
Underwriters
Allen & Co., P. W.
Co., Inc. and Auchincloss, Parker & Redpath,

New

ferred

Co., Inc. of New York.

Proceeds—For

supplied

additions, and

*

•

to

ot

.

:"j

market.

be

•

10 shares held

^ Cooperative Grange League Federation
Exchange, Inc.

capital. Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of
Philadelphia, Pa.,

/and

Price—To

,

of principal
of

of

common

share for each

:

'.

-

sold

75%

promissory note payable
Orleans, La;
Under¬
writers—Howard, Weil, Labouisse, Friedrichs & Co., New
Orleans, La.; Rauscher, Pierce & Co., Inc., Dallas. Texas;
and Russ & Co., Inc., San
Antonio, Texas. Offering—

—

Brooks &

Atlas Credit Corp., Philadelphia, Pa.
June 11 filed $600,000 of 6% convertible subordinated
debentures due June

1957.

Proceeds—For

Bids—Expected to be received

on

10,

new

tries

stock

common

by

one

.

to

(1/10)

the rate ot

x

v

Dec. 18 filed 170,000 shares of
be offered for
subscription

and

j

be

to Texas Industries, Inc., which owns
Freiberg's outstanding common''stock.
'Price—To be supplied by amendment. Proceeds—From
sale of units to retire short-term loans and for working
nnnital
pfp
an/^
capital, etc., and frnm Sale ol dphpntnroo tn Tovot Trtslrfiofrom
debentures to Texas Indus¬

;Of -Talbottown

Continental Copper & Steel
Industries,

Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Drexel & Co. (jointly);
Eastman Dillon, Union Securities & Co. and Smith, Bar¬
ney & Co.
(jointly); Blair & Co. Incorporated; White,

of common stock (par 10
Proceeds—For investment.

filed

to

about

Shopping
Underwriter—Alex. Brown &. Sons,

others.

Price—$5 per share.

and

tures

pm i? f?y

u

Weld &

-

vol.'

T<°
Stock.

acquire

Baltimore, Md.

repay

'tj

iw..

tv'
To

—

Inc.

$2,000,000 of subordinated debentures due
450,000 shares of common stock (par 10 cents),
of which $1,500,000 of debentures and all of the stock
are to be offered publicly in units of $500 of debentures
and 150 shares of stock; the remaining $500,000 of deben¬
1971

if Community Research & Development, Inc. (1/15)
Dec. 20 filed
$3,000,000 of 6%. convertible debentures
1

Fund,

filed 2,000,000 shares

Oct.-11

of

—

tn„

OrHptpns, La. (1/15)

Freiberg Mahogany Co.

capital stock. Price—

Inc.

PlOCCCflS

of

Ltd., Palm Beach, Fla.
Offering—Temporarily postponed."
"

mill

a

ac¬

Underwriter—None.

Underwriter—Frank B. Bateman,

Proceeds—For acquisition

construction

23

cents).

- cor¬

installation

petitive bidding.

Co.

other

is subject to
2,435,000 shares

filed

Florida Growth

building, purchase
of machinery and
equipment, and as
operating capital. Underwriter
Industry Developers,

of first mortgage bonds due
bank loans and for construc¬
Underwriter—To be determined by com-,

tion program.

and

14

Nov.

None.

—

offer

least

Corp., San Francisco, Calif.
100,000 shares of common stock. Price—
At par ($10 per share). Proceeds—For construction of
manufacturing plant and to provide working capital.
Underwriter—None,. Robert E. Evju is President.

Plywood, Inc., Rainier, Ore.

plant site,

and

$10,000,000

Proceeds—To

equipment;

Underwriter

Sept. 4 filed 200 shares of

(1/10)

maximum of 1,092,925

shares of common
stock (par $10), but not less than 1,087,783 shares, to be
offered
for
subscription by common stockholders of
record Jan. 9,
1957 at the rate of one new share for
each 10 shares held; rights to expire on Jan. 24, 1957.
Price—To be supplied by amendment.
Proceeds—For
expansion program and working capital. Underwriter—
Smithy Barney & Co., New York.
a

expansion;

purposes.

The

at

Flakewood

Nov.

Century Controls Corp., Farmnlgdale, N. Y.
Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
90% of principal amount.
Proceeds—For research and

Proceeds—To

amendment.

Northwest.

of

Vickers Brothers, New York.

Underwriter—None.

Tri-Continental Financial

.

Offering—Date

mon

if Arkansas Louisiana Gas Co., SHreveport, La.
Dec.

'

Sept. 24 filed 200.900 shares of class A common stock
(par 50 cents).' Price—$4.50 per share.
Proceeds—To
repay loan; for maintenance of and increase of inven¬
tory; for development of branch offices; and for research,
laboratory tests, and testing equipment. Underwriter—

Dec.

—

stock.

holders

Eternalite, Inc., New

agreed to purchase an addi¬
shares and reoffer them to per-,

300,000

if Central Standard Indemnity Co.
10
(letter of notification) 10,000 shares of com¬
stock (par $10) to be offered on a
preemptive basis.
Price—$20 per share.
Proceeds—For working capital
and surplus. Office—211 W. Wacker
Drive, Chicago, 111.

under options

dated Jan. 1, 1954; 210
under option dated Jan.
*1, 1955; and 616 shares at $7.22 per share, under option
dated Jan. 1, 1956. Also 82 shares of class B stock (par
$1) at $7.96 per share under option dated Jan. 1, 1.954.
Proceeds
For
working capital.
Office —3717 Park
Place, Glendale, Calif. Underwriter—None.

,,

Pacific

common

by

ceptance

indefinite.

shares offered at $7.60 per share

^

Northwest

(par $1) of which 585 shares are to be offered at

$7.96

Blair

—

selected

sons

of

shares

stock

—

New York. Latter has

and

shares.]

if Applied Research Laboratories
14 (letter of notification)
1,411

/ '

■

About

to develop shopping centers at the seven sites and
to
acquire and develop additional sites for related real
estate
activities, and for general corporate purposes.

—

Dec.

Minn.

To be supplied by amendment;filed 5,235,952 shares of commoh B> stock (par
$3) to be .offered in exchange for common .stock of
$4,100,000 will be used to acquire
Pacific Northwest Pipeline Corp. on the
basis of
14
seven
shopping center sites and a Penn Fruit super-.
of common B stock for each
eight shares of Pacific
market adjacent to one of them; the balance will be used

18 filed 40,000

an

Paul,

El Paso Natural Gas Co.

_

Price

Proceeds

St.

^

shares of $1.20 cumulative convert¬
1956 series. Price—At par ($20 per
share). Proceeds — For working capital and to reduce
bank loans.
Underwriter
Fulton, Reid & Co., Inc.,
Cleveland, O. [Registration also covers 30,400 shares of
common
stock (par $1) already issued and outstanding
and being registered for the purpose of offering the pur¬

.

Hutton &

,

_

ible preferred stock,

of such

-Office—St. Paul, Minn. Underwriters—W. "E.
Co., Cincinnati, Ohio, and Kalman & Co., Inc.,

purposes.

company's operations into

stock,

and

2,950

(par $1), and $700,000 of 4% debentures
1975^ to be offered for sale in the States
Colorado in units of

50 shares

of

class A

shares

of class B stock and one $7,000
debenture. Price—$10,000 per unit. Proceeds—For purchase of property, remodeling of present main building,
for

new

Operates

construction

and

working capital. BusinesshoteL Underwriter—None,

year-round resort

Volume 184

Number 5598

The Commercial and

...

Financial Chronicle
(2823)

i

Guardian

<

Chemical

Corp.

Hancock Electronics Corp., Redwood
City Calif.
(letter of notification) 300,000 shares of com¬

■

-Oct. 29 (letter of notification) $250,000 of 6% convj!
-debentures due Dec. 1, 1966 being offered for subscrip¬
tion

by

stockholders

common

of

Nov.

record

5,

common'stock,

fraction

or

thereof

held( rights

ex¬

Calif.

pire

on Dec. 28.- Price —? At par (in denominations of
$100 each).
Proceeds—For working capital.* Office—
J 38-15 30th St., Long. Island City 1, N. Y. Underwriter
—None.?,,
J. '
J
Guardian

Consumer

Nov. 26 filed

Finance

ing stockholders. ^Underwriters—Hayden, Miller &
and Ball, JBurge & Kraus, both of
Cleveland, O.

pre¬

Oct.

'

;.

:

7

?■' December

*

27, 1956

■-

Price—$9

ISSUE

(Thursday^

-

EST)

noon

December 28,

.

$4,200,000

1956

*

\

otter—no

December

V

*

31, *1956

,

(par $1)

selling stock*

.• Hawaiian

190,000

Dillon,

(Monday);

Union

&

Co.)

shares

>

Community Research & Development, Inc
*

.

(Alex.

Brown

&

Sons)

Eternalite, Inc..—

(Monday)

Debs.

>

$3,000,000

r

Pineapple

(Offering

(

Co.,

Ltd

stockholders

to

Witter

&

Co.)

413,920

January 2, 1957

>rr

Texas

Fuel

by

shares

Dean

Class A Common

(Bids

&

Co.)

Co

;

.v

(Bids

-January 4,
Manufacturing

Scovill

(Morgan

Scovill

(Hamlin

(Offering
William

$10,000,000

Manufacturing Co.___

(Fulton,

Reid

&

Inc.)

E.

Idaho

Hutton

&

Power

Co.

and

100,000

shares

&

Co.,

Investing

Co.;

Airlines,

Inc

Valley

Gregory

Inc.)

Sons)

&

Co.,

Co.,

Inc.)

$694,900

•

underwritten uy A.

54,120

(Bids

■

;

11

v.-Southern-.Ry

.

Oklahoma

January 9,
*

'

(The

First

&

.

Seane)

(Bias

and
i*

&

Electric Co

10:30

Corp.)

$20,000,000

(Tuesday)
Equip. Trust Ctfs.

invited)

be

to

(Bids

h

•

'

hiBids.

Western Light
'

1

(Offering
Dean

"

invited)

Co

stocknoiuers—to be

Witter

Co.)

&

about

'

Inc

-te'that

Atlantic City Electric

Bonds

stockholders—to

Iieftwich

Ross)

&

(Bids

11

by

cent).
,'ital.

(Bids

11

RR.—
(Bids

be invited)

to

Steel

(Offering

'

"7

to

10,

Ifr,..-

■

Barney & Co.)

*

(offering
p.

to

w.

not

(Paine,

(Exchange
*

Jackson

&

&

as

to

(Bids

to

•
.

•

(Merrill Lynch,

and

(Bids

Phillips
-

invited)

(Offering

7,

about

1957

Corp.)

&

Southern

19,

California
(3ids

to

Edison
be

mviced)

March

be

invited)

$1,400,000

"

-

Appalachian

Sea^« Roebuck Acceptance

Corp.—

Sachs. & -Co.t- Halsey, Stuart &
and
Lehman Corp.) $50,000,000




.

•*

(.

Co..

Jnc-.» /.

-i

.)

t

-

■.' t ,j

American

..j,;*
'

Debentures

to

March
<

u—7-Debentures
$12,000,000

Electric
(Bids

<

,

19,
be

Power
invited'

26, 1957

Telephone
r

1957

.

by The

Bonds
"

(Tuesday)
Co.—!—1

Bonds

$29,000,000

(Lids

be

(Thursday)

to

invited)

$19,000,000

•

i

Corp., Rochester, N. Y.

(1/7-11)

16 filed 81,428 shares of 7% participating cumula¬
preferred stock (par $5), of which 71,428 shares are
to be offered to public. Price—$7 per share. Proceeds—
For machinery and equipment, working capital and other
corporate purposes. Underwriter—McDonald, Holman &
Co., Inc., New York.
;
,
.

Life Insurance Co. of South Carolina

*

i

Oct.

5

to

—Bonds

.

15

filed

339,600 shares of

common

stock

(no par)

be offered for subscription by stockholders of record

Sept.
for

—Bonds
about

I

Nov.

$37,500,000

Co,

of notification)

(par 10 cents).

tive

Co._

(Tuesday)

(letter

Underwriter—None,

C.

D.

(Tuesday)

& Telegraph Co

9, ,1957.

Power

Co.

a

K D

(Bids to be invited) $250,000,000'

.May

(F. L.)

First

'

Alabama

pipe
Co.,

290,000 shares of com¬
Price—$1 per share. Proceeds
laboratory and equipment, patent costs, working
capital, etd- Office—927-15th Street, N. W., Washington,
—For

$171,000,000

1957

12

stock

mon

(Thursday)

underwritten

be

additional

Morgan Stanley

if Justice Co.
Dec.

Bonds

—Debentures

about

construct

—

derwriters—McLaughlin, Cryan & Co. and Gearhart &
Otis, Inc., both of New York.
r-r^t

Loeb

$12,000,000

Co.—

to stocknolders—to

February

$4,875,000

(Morgan. Stanley & Co.)

(Goldman,

Kulin,

$25,000,000

invited)

Petroleum
Boston

(Offeiing to stockholderS-^-underwritten bv Harriman Ripley
& Co.
Inc.)
$46,224,200

-

be

to

February

Stone

and

■

160,000 shs.

t

Co.)

Eeane

To

—To pay short^rm loans and for working capital. Un¬

—Debentures

Equip. Trust Ctfs.
be

Jacobs

(Monday)

&

—

Underwriter

Oct. 4 filed $3,000,000 of 6% convertible debentures due
Nov. 1, 1966. Price—100% of principal amount. Proceeds

Morgan

shares

Public Service Co. of Oklahoma.—-.

Preferred

dealer-manageis

1957

Pierce, Fenner
&

•;£-

and Mitchum,
$10,000,000

Riegel Textile Corp.—.—

•V

by

Proceeds

York.

New

...Common
underwritten

4,400.000

due

facilities.

line

(Thursday)

be

about

br

(1/9)
1
••
$25,000,000 of 25-year sinking Jund de¬
Jan.
1, 1932. Price—To be supplied by

filed

20

amendment.

$35,000,000

Go<
Co.)

ir

per

super

"

bentures

Debentures

Aircraft' Co

Niagara Mohawk Power Corp.—— .Debentures

-

Oil

stockholders—rto

,

Jersey, Indiana & Illinois RR._-Equip. Tr. Ctfs.

j:

»

Douglas

Preferred

offer—Paine. Webber, Jackson & Curtis

(Bids

,

Smith,*'

shares

Telephone Co. of Michigan
Corp.-to act

invited)

February 4,

„X

Curtis

Templeton)

to

Stanley

...

Webber,

Webster Securities

New

1,092,925

by

of California

Missouri Pacific RR

k

Mobil

./■>

stockholders—underwritten by A'len & Co.;
& Co. Inc.; and Auchincloss, Parker
& Redpath)
170,000 shares

Jones

-

Socony

& Steel Industries, Inc.—Com.

General Telephone Co.

General

than

(Tuesday)

& Tel. Co

be

share.
Proceeds—To equip and
launderettes and for working CapUnderwriters—Names to be supplied by amend¬
five

if Interstate Oil Pipe Line Co.

*■

-ilf—-Common
more

1957

to

Price—$1

ment.

$2,000,00(^-1^,

underwritten

be

(Bids

*

(Offering

Brooks

.

«

—Preferred

(Thursday)

Corp.—,
stockholders—to

'Continental Copper

i-

about

29,

January 31, 1957

$9,000,000

1957

■

.

—Equip., .Trust Ctfs.

January
Armco

EST)

a.m.

,

185,000 shares each of Interna¬
exchange for all the outstand¬

common

Equip. Trust Ctfs.
$6,720,000

Dec.

-.-—Bonds

"

(Thursday)

invited)

Mountain States Tel.

»-.r

in exchange for
Equity and Finan¬

142,000

establish

$10,000,000

1957

in

stock

stock.

Dec.

Bonds

be

to

January

by
-

24,

(Bids

....Common
underwritten

$1,000,000

Pacific Power,& Light Co.___
f?)f . (Bids 11 a.m. EST)
$20,000,000
Pacific Power & Light Co
Wabash

January

stock

common

common

common

the

^ International Duplex Corp., San Francisco, Calif.
21 filed 500,000 shares of common stock
(par one

( Wednesday)

EST)

receive

shares

Co

a.m.

International

to

mont

-Common

underwritten

Pittsburgh & Lake Erie RR

1'

be

common

shares of Equity common owned by Fre¬
Corp. will be tendered in acceptance of the Equity
exchange offer. Underwriter—None.

'

•

-

of

'(Offering1: to

.

stock of Investors Financial Corp.
"and Group Equities, Inc. International has been ihformed

.Bonds

65.000

of

are

ing shares of

$10,000,000

& Telephone Co.,

to

January 23, 1957
*

Development

Commerce,
Memphis, Tenn.
u_—

1

First Boston Corp. ancl
Pierce, Fenner & Beane, both of New

share of Financial

tional

Bonds

$5,000,000

Electric

be

shares

cial

,

Interstate Oil Pipe Line Co.-__
..—Debentures
;
1
*
(Morgan Stanley & tio.) $25,000,000

•-

Underwriters—The

Lynch,

Des Moines, Iowa
stock (par 10
are to be offered by The
Equity Corp. on a share-for-share basis in exchange for
Equity Corp. common stock, and the remaining 185,000
shares by Financial General Corp. on a basis of 1%
one

—Bonds

$35,000,000

mvited)

&

to

v

$4,000,000'

1

invited)

be

to

Southwestern1 Gas
i■

$125,000,000

,

be

to

(Bids

200,000 shares

approximately

Southern Indiana Gas & Electric Co

(Morgan Stanley & Co. and The First Boston Corp.i $100,000,000

Bank

be

,

'

National

(1/7)

International Capital Corp.,
Nov. 29 filed 370,000 shares of

Bonds

EST)

a.m.

offer will not become effective
of the class A and class B stock of

80%

International Bank of
Washington, D. C.
Sept. 28 filed $1,000,000 of time certificates, series B, C
and D. Price—At 100% of principal amount. Proceeds—
For working capital.
Underwriter—Johnston, Lemon &
Co., Washington, D. C. '

by

Equip. Tr. Ctfs

Pacific Gas & Electric Co

$35,000,000

International Bank for Reconstruction

'

Common
shares

$1,980,000

*

——Debentures

Illinois Power Co.——!_
—Common
7.
(The First Boston Corp. and Merrill J_.ynch, Pierce, Fenner

-

Merrill

(Thursday)
i

Pacific Ry.__

(Tuesday)

(Wednesday)

1957

Boston

1957
invited

be

to

Hilton

Savoy-

York.

underwritten

291,967

of

common stock (no
par).
supplied by amendment.
Proceeds—To
$8,000,000 of bank loans and for construction

repay

$4,650,000

Co._

January 22, 1957

$5,540,000

EST)

noon

Debentures

-

be

Inc.)

of

share

(1/9)
200,000 shares of

filed

20

Price—To

Cincinnati, New Orleans, Texas &

$25,000,000

Aluminum Co. of America——.———Debentures

•;

Gas
(Bids

——Equipment Trust Ctfs.
(Bids

.

EST)

a.m.

Dec.

shares

New England Tel. & Tel. Co
,

Co.,

17,

(Bids

-Debentures

1957

Service

&

B

exchange

at least

program.

stockholders—to

Read

class

^ Illinois Power Co.

$3,850,000

about

stock

common

Jan. 7, 1957.

on

Equip. Trust Ctfs.

invited)

of

and

cents), of which 185,000 shares

(Ohio)
Moseiey & Co.)

January 8,

be

January

C. Allyn &

Co.

Co.)

A

—

Common

(Wednesday)

Chicago & Eastern Illinois RR.._

and

Common

(F. S.

to

Dillon,

--Debentures
Allen

Northwestern Public Service Co.—-

Oil

&

shares

class

bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Equitable Securities Corp.; Blyth & Co., Inc., Lazard
Freres & Co. and The First Boston Corp.
(jointly); Kid¬
der, Peabody & Co.; Harriman, Ripley & Co.
Inc.; Salo¬
mon Bros. &
Hutzler; Kuhn, Loeb & Co. Bids
Ten¬
tatively expected to be received up to 11 a.m. (EST)

Straus,

— may
be underwritten by
Blyth & Co., Inc.) 105,000 shares'

Brownell

Public

(Offering

(Offering to stockholders—To be

Standard

and

$499,996

—

&

and

(Province of)

to

Southwestern

Preferred

Holman

Co.

Grant

(Bids

;

$20,000,000

„

(Mohawk

,

EST)

a.m.

Corp,

Mohawk
>

Inc.)

Co.;

$1,500,000

Norfolk & Western Ry

Bonds
11

(McDonald.

•

Co.,

&:

three
each

7 filed $20,000,000 first
mortgage bonds due 1987.
Proceeds—To repay bank loans and for construction
pro¬
gram. Underwriter — To be determined
by competitive

(Halsey, Stuart & Co. Inc.) $10,000,000

Co

(Bids

K D I

&

about

con-

stock

common

Idaho Power Co.

Common

stockholders

New Brunswick

-Common

Kalman

and

to

Staats

$800,000

Economics Laboratory, Inc
(W.

Cowen &

January 16, 1957

(Monday)
--Preferred

Co.,

R.

The

(Offering to stockholder^—to be underwritten by Green & Ladd

>

'
*

Co.;

McDowell)

for

of

Dec.

shares

Winters National Bank & Trust Co._

Common

American Monorail Co.___

&

shares

and

...Common
Common

319,894

-

Corp.

and
(par $2.50) to be of¬
fered in exchange for
outstanding capital stock of SavoyPlaza, Inc., at the rate of three shares of series A
pre¬

$1,243,750

Valley National Bank

-Debentures

January 7, 1957

Co.)

Allen &

Underwriter-

Co., San Francisco, Calif.

278,733 shares of 5%% cumulative
voting preferred stock, series A (par $25)

vertible

unless

Preferred & Common

Lunt;

Blosser

(Friday)*

Co.)

&

working capital.

21.
re¬

Savoy-Plaza is tendered.

Co

Spar-Mica Corp

Ctfs.

(Offering to stockholders—to be underwritten by Morgan
Stanley & Co.) 176,450 shares

•

Service
&

Co
&

Public

share for

new

filed

Hotels

...Bonds

Co.)

23

ferred

by Stroud

shares

$20,000,000

Cryan &

&

Hotels

Plaza.

underwritten

(Offering to stockholders—underwritten by Kidder, Peabody

$9,600,000

1957

Stanley

(McLaughlin,

Missouri

Equip. Trust

EST)

noon

be

108,160

EST)

noon

.

$1,375,000

-

Inc.)

Maine Fidelity Fire & Casualty Co

'

Debentures & Common
(Shields

.(

.

Southern Pacific

Co..

Louisiana Power & Light Co.Common

t

Common

stockholders—to

to

&

$300,000

January 3, 1957 (Thursday)
Prince Marine Drilling & Exploration Co.

'

-'r(Offering

(Wednesday)
Co.)

$900,000

Hamilton Paper Co

**

V.

'

j

Corp.--——
(Franklin Securities

.

,

(Vickers Brothers)

/

Common*;

Underwritten

—

Nov.

278,733

*

Hawaiian

Witter

$15,000,000

(Tuesday) *

one

expire on Jam
Price—To be supplied by amendment. .Proceeds—To
Dean

-

$7.50)

stockholders of

duce bank loans and for

-.Debentures

Securities

January 15, 1957

:

(12/31)

Dec. 28, 1956 on the basis of
four shares
held; rights to

Hilton
;

Pineapple Co., Ltd.

Nov. 29 filed 413,920 shares ©f common
stock (par
to be offered for subscription
by eommon
each

..

January 14, 1957

-r>

(Eastman

\"

—-.Common

underwriting)

Co.

record

Pacific Petroleums, Ltd.—

(Friday)

Drexel Furniture Co.___
(Exchange

-f

-

.

>r

V

'

..(Bids

Proceeds—To certain

after Jan.

1, 1957 to
such debentures into common
shares by exer¬
cising the conversion privilege conferred by the inden¬
ture.
The conversion price is
initially $27 per share d£
common stock
acquired and is payable by the surrender
of $25 principal amount of
debentures and payment of
$2 in cash.

CALENDAR

Chesapeake & Ohio Ry._i_-Equipment Trust Ctfs.

V: V

share.

per

and

on

convert

,

NEW
!•

ij

-Hartfield Stores, Inc. J - v
2. filed 240,000 shares of common stock

/

10-year
Owners of the

July 1, 1965.

debentures will be entitled

11 filed ,133,200 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—To sell¬

ferred stock (par $10 L Price—To be supplied by amend'ment.- Proceeds—To reduce-bank loans.< Underwriter—

Van Alstyne, Noel & Co., New York.

convertible debentures due

Manufacturing Co., Cleveland, Ohio

Dec.

Corp.:

75,00# shares of 60-cent convertible

Hartford Gas Co., Hartford, Conn.
11 filed 60,000 shares of common
stock (par $25),
against conversion of $1,500,000 3 Mt%

issuable

t

Hansen

Alstyne, Noel & Co., New
& Co.; Washington, D. G.

Dec.

Co., Beverly Hills,

.

Underwriter—Van

York; and Johnston. Lemon
Offering—Postponed.

Price—At par ($1 per share).

Proceeds—For
research and development. Business—Closed circuit tele¬
vision.
Office—2553 Middlefield Road, Redwood
City,
Calif. Underwriter—Daniel Reeves &

1956

to

stock.

mon

the basis of $100 of debentures for each 200 shares of

on

holders.

Nov. .19

31

12,

each

1956

at

the rate of two

held.

share

Price—To

share; and to public, $15 per
pansion and working capital.
-

'

shares of

new

stock

stockholders, $10 per
share. Proceeds—For ex¬
Underwriter—None. PubContinued on page 32

The Commercial and Financial
J2

Continued from page

31

National Old Line insurance Co.
•

:

„

;

V

/ *

employees of the company „
qualified licensed dealers. .
;

md

Co.
'
Oct. 1 (letter of notification) 4,994 shares of common
Vrtock (no par) being offered to stockholders on the
^jesis of oneshare for each 20 shares of record Sept. 24;
frights to expire Jan. 2, 1957. Price—$25 per share. Pro- ;
*5eeds-^To reimburse company for additions to property
in Ohio and for other corporate purposes.; Office—203
st Ninth St., Lorain, Ohio. Underwriter—None.
>
Lorain Telephone

_

*

v

postponed.

*

'..

• •.

r-77; .f:':.

■

'

14 filed $10,000,000

-

Power & Light Co.

,

by competitive bidding.
Probable
Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Morgan Stanley & Co. Bids — Tentatively- ex¬
pected to be received up to 11 a.m. (EST) on Jan. 3,
bidders:

/ -.

-,

<••/'

;

*

•

:

.

...,77

to

expire

on

Proceeds

amount.

28,

Jan.

—

of principal

Price—100%

1957.

For construction program.

Under¬

writer:—Harriman Ripley & Co. Inc., New York.

May Stores Realty Corp.
filed $25,000,000 general mortgage bonds due
Feb. 15, 1977. Price — To be supplied, by amendment.

A-Northeast Metals Industries, Inc.
Dec. 14 (letter of notification) 20,000 shares of common
stpek (par 10 cents) to be issued upon exercise of war¬
rants between Nov. 14, 1956 and Nov. 14, 1961. Price—
$2 per sharer Proceeds—To pay bank loan; purchaseequipment; and for working capital. Office — 1206 N.
Front Street, Philadelphia, Pa.
Underwriter—Pearson,
Murphy & Co., Inc., New York, N. Y.

.

^Proceeds—Approximately $18,000,000 is to

be used to

purchase properties from parent, The May Department
.Stores Co.; to pay existing indebtedness to parent and
•for acquisition or construction of additional properties
to be leased to parent.
Underwriters—Goldman, Sachs
\ & Co.. and Lehman Brothers, both of New York. Offering
—Temporarily postponed.
;

,

.

•

.......

Tungsten Corp., Boise, Idaho •*
Hov. 30 (letter of notification) 100,000 shares of common
ntock (par one cent) and 100,000 stock purchase war¬
rants (each two warrants to entitle holder thereof to
iuurchase one share of Idaho Rare Minerals Corp. 6%
cumulative convertible sinking fund preferred stock,

set

Projects-Venture F, Inc., Madison, N. I.
1 Dec. 14 filed *$2,500,000 of Participations in Capital as
limited Partnership Interests. Price — In $25,000 units.

,

Proceeds

To

acquire leaseholds and for drilling of
Initiator exploratory wells. Underwriter—Mineral Proj¬
ects Co., Ltd., Madison, N. J.
—

Minerals, Inc., New

Yor^c

'J June 22 filed 2,500,000 shares of

common

stock

(par

cent). Price—$1.50 per share. Proceeds—To acquire
for $2,400,000 the Chavin lead-zinc-copper-silver mine
located in South Central Peru, and for general corporate
purposes. Underwriter — Gearhart & Otis, Inc., New

cne

'York. Offering—Postponed.

supplied by amendment. Proceeds—For construc¬
expenditures. Underwriter — A. C. Allyn & Co.,

offered for subscription by common stockholders
one new share for each five shares held

the basis of

about Jan. 15, 1957; rights to expire about Jan. 29.
Price—To be supplied by amendment.
Proceeds—To¬

on or

gether with $5,000,000 to be received from private sale
'mortgage bonds, to be used to retire bank loans
and pay for newi construction.
Underwriter—Kidder,
Peabody & Co., New York.

cf first

Mohawk

III.

•

-

\

-

Ocean City Pier Corp., Berlin, Md.

Oct. 4 filed

$2,000,000 of 6% debenture bonds due July 1,
1976, and 4,000,000 shares of common stock (par one
to be offered in units of one $100 bond and 200
shares of stock. Price—$300 per unit. Proceeds — For
construction and operation of amusement pier. Under¬
writer
Paul Korns, a director, of Johnstown, Pa.
Lt. Col. James A. Grazier of Whaleysville and Ocean
City, Md., is Chairman of the Board.

cent)

writers

100%

and

accrued interest.

For general corporate purposes.
Under¬
Mohawk Valley Investing Co., Utica, N. Y.;

—

Ohio
.

Power Co.

Sept. 20 filed 60,000 shares of cumulative preferred stock

Oklahoma Gas & Electric Co.
Dec.

19

filed

(1/17)

Jan.

first

of

17.

:

^

Mining Corp., Montreal, Canada
Oct. 15 filed 900,000 shares of capital stock (par $1), of
which 200,000 shares are now outstanding. Price—To be
supplied by amendment. Proceeds — For exploration
Underwriter—To

costs.

be

named

later.

Michael

Tzo-

panakis, of Miami, Fla., and Denis Colivas, of Montreal,
Canada, are large stockholders.
'
r

•

Pacific Petroleums Ltd.

Dec. 20

filed

Jan.

1977.

1,

(1/14-18)

$15,000,000 of subordinate debentures due

To be supplied by amendment.
bank loans and for expansion
program.
Underwriter—Eastman Dillon, Union Secu¬
rities & Co., New York.
Proceeds

—■

Price

To

—

repay

tion.

repay

bank loans and for

Underwriter—To

be

Probable

bidders:

Brothers,

Bear,

(par $1.25)

basis of

one

to be offered to stockholders

share for each

seven

on

the

shares held. Price—$8

Proceeds—For working capital. Office—314
Pine St.,"Spartanburg, N. C. Underwriter—None. *
share.




—

To be 6500 per unit. Proceeds'— For
and related activities.
Office-

of fronton

San

Juan, Puerto Rico, Underwriters—Crerie & Co.,
Houston, Texas; Dixon Bretscher Nooriah, Inc., Spring¬
field, 111.; and Aetna Securities Corp., New York. Offer¬
ings-Date indefinite.

.v.

7

Pyramid Productions, Inc*, New York *
i
Sept. 27 filed 220,000 shares of common stock (oar $1),
of which 200,009-shares are to be offered to
public and
20,000 shares issued to underwriter. Price—$5 per share.
Proceeds—To retire $125,000 of outstanding 15% deben¬
tures as well as a $173,180 debt to Trans-Union
Produc¬

tions,

Inc.;

and

for working capital.
Business—Tele¬
Underwriter^-E. L. Aaron & Co., New
7

.

7 '7'.

Rock Oil & Gas Co.
'
Dec. T3 (letter of notification)
27,330 shares of common
stock.
Price—At par ($1 per share).
Proceeds —For
development of oil and gas properties. Office—Suite 2,
Cragin Bldg., 308 Fremont Street, Las Vegas, Nev. Un¬
derwriter—None.

Redi-Food Co., Inc.
Oct. 8

(letter of notification) 150,000 shares of common
(par 10 cents). Price—$2 per share. Proceeds—
purchase plant and equipment. Office—2505 Butler
Place, New York CityJ Underwriter—Hopp & Co., Pas¬
saic, N. J. '

stock

determined

new

by

Halsey, Stuart

Stearns

&

Co.

construc¬

competitive
& Co. Inc.;

and

Light Co.

City. Underwriter-

Morgan Stanley & Co., New York.
A* River Properties, Inc.
(letter of notification) 30,000 shares of

(par

$100). Proceeds—For construction program. Underwriter

Price

—$1.15

per share.
Proceeds—For retirement of''second
mortgage and working capital.
Office — 922f .'Osorio
Avenue, CoraI Gables, Fla. Underwriter—None. Robert

M. Thomson is President.

St.

7

<u

.v77^

Regis Paper Co.

Oct.

26 filed 750,000 shares of common
stopk (par $5>
being offered in exchange for outstanding common stock
(par $10).of J. Neils Lumber Co. at rate of 2Vz St. Regis

shares for each Neils

pire

on

,common

share.

The offer will

ex¬

Dec* 31, 1956, unless extended.

Exchange Agent
—The First National Bank of
Portland, P. O. Box 3457,
Portland, Ore.
Samson

Uranium, Inc., Denver, Colo.
(letter of notification) 25,000,000 shares of capi¬
Price—At par (10 cents per share). Proceed!
—For core drilling,
including geological research and
core assays; for mining shaft; to exercise
purchased
option agreement on additional properties; ior working
capital and other corporate purposes. Underwriter
Aug. 21

tal stock.

—

Indiana State Securities Corp. of

Indianapolis, Ind., foi

offering to residents of Indiana.
Scovill
Dec.

Manufacturing Co.

(1/4)

14 filed

$10,000,000 of 25-year debentures due Jan
1, 1982. Price—To be supplied by amendment. Proceeds
—For expansion and working capital.
UnderwriterMorgan Stanley & Co., New York.
Scovill

Dec.

Manufacturing Co.

(1/4)

14 filed

176,450 shares of common stock (par $25;
offered for subscription by common stockholders
of record Jan. 3, 1957 at the rate of one new share foi
each eight shares held; rights to expire on Jan. 21. Price
,

to

be

—To be supplied by amendment.

(179)

Dec. 6 filed 90,000 shares of serial preferred stock

common

stock (par 50 cents) to be offered to stockholders.

Salomon

(jointly); Blyth & Co., Inc. and White,
Weld & Co. (jointly); Eastman, Dillon, Union Securities
& Co. and Kidder, Peabody & Co. (jointly). Bids—Ex¬
pected to be received up to 11 a.m. (EST) on Jan. 9.
Pacific Power &

Dec.

Dec. 13

mortgage bonds due
1987. Proceeds—For construction program. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Lehman Brothers and
Blyth & Co., Inc. (jointly); The First Boston Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane and White, Weld &
Co. (jointly); Harriman Ripley & Co. Inc.; Equitable
Securities Corp.; Kuhn, Loeb & Co. Bids— Tentatively
expected to be received up to 10:30 a.m. (EST) on
$20,000,000

Lehman

common

Price

construction

term bank loans. Office—New York

Inc. and Stone & Webster Securities Corp. ( joint¬
ly); Lehman Brothers. Bids—The two received up to 11
a.m.
(EST) on Oct. 30 were rejected.

bidding.

Nov. 30

of stock.

& Co.,

Bros. & Hutzler

Fidelity Insurance Co.
(letter of notification) 33,000 shares of

12-year 6% /first mortgage
bonds due 1968, and 300,000 shares of common stock
(par
$1) to be offered in units of a $500 bond-and 100 shares

A' Riegel Textile Corp. (L/LO)
j
20 filed $12,000,000 sinking fund
debentures due]
197?.
Price—To be supplied by amendment.
Proceeds
—To retire $4,400,000 term notes and to reduce short-*

Dempsey-Tegeler & Co., St. Louis, Mo.; and Gregory &
•National

*

$1,500,000 of

(par $100). Proceeds—For construction program. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: The First Boston Corp.; Blyth & Co., Inc.;
Kuhn Loeb & Co.; Eastman Dillon, Union Securities A Co.
and Salomon Bros. & Hutzler (jointly); Harriman Ripley

Sons, New York.

—

filed

To

Proceeds—To

Proceeds

July 27

—

convertible notes.

—

Underwriter—Shields & Co., New York.

Puerto Rican Jai Alai, Inc.

A-Red

Pacific Power & Light Co. (1/9)
Dec. 6 filed $20,000,000 of first mortgage bonds due 1987.

Price

Drilling &. Exploration Co. (1/3)
$1,250,000 of 5^% sinking fund debentures
1, 1969 and 125,000sharesof common stock'(par 7
50 cents) to be offered in units of $100 of debentures and

due Jan.

v

:

Chicago,

Airlines, Inc., Ithaca, N. Y. (1/7)
Oct. 26 filed $794,000 of 5Y2% convertible subordinated
debentures due Aug. 1, 1966, of which $100,000 principal
jamount will be offered in exchange for outstanding 6%

per

Prince Marine

Dec. 6 filed

York.

Orefield

Ar Missouri Public Service Co. (1/15)
JDec. 21 filed 319,894 shares of common stock (no par)

.stock

effective, has been extended until 3 p.m.r
(EST) on Feb. 1, 1957.
7,.7.,- 7v7777v-7Z,7-^ ;

vision releases.

Inc.,

raining expenses. Office—c/o Robert J. McRae, 1704
Oourley St., Boise, Ida. Underwriter—Von Gemmingen
& Co., Inc., 320 North Fourth St., St. Louis, Mo.

.

been declared

tion

$10, and one share, of Idaho Rare common stock, par
one cent at $11 per unit). Price—$3 per unit, consisting
of one McRae share and one warrant. Proceeds — For

_

each

,

on

To be

ipar

Mineral

18 filed

54,120 shares of common stock (par $3) to
be offered for subscription by common stockholders of
record Jan. 7 or Jan. 8 on the basis of one new share
for each 1C shares held; with a 14-day standby. Price—

McRae

iar bids has been

-

(1/7-8)

Northwestern Public Service Co.

Dec.

,

Michigan Wisconsin Pipe Line Co.
"July 2 filed $25,000,000 of iirst mortgage pipe line bonds
Clue 1976. Proceeds—To pay off short term bank loans
fend for construction program.
Underwriter — To bo
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 4%s, but were turned down. No new date

eommon .stock of Pocahonthe basis of 2% shares of Bittsburgh for,
Pocahontas common share. The. offer, which"has,

tas Fuel Co.

Houston, Tex.

,,

1, 1972, to be offered for subscription by common
1957 at the rate of $100
of debentures for each 25 shares of stock held; rights

Proceeds — To increase capital
«md surplus.
Office—Portland, Me. Underwriter—McjCaughlin, Cryan & Co., New York.
\

to be

being offered in exchange for

stockholders of record Jan.i 10,

:

Frlce—$12.50 per share.

on

■,

Feb;

ONov. 23

:

t

7.77--;. "

Pittsburgh Consolidation Coal Co.
* '"•'? ? i
Oct. 3 filed 2.678*697; shares of ^common stock
<par $1)

10 shares of stock. Price —$110
per unit. Proceeds—To
acquire certain oil, gas and other mineral; leasehold pro¬
perties, including properties now producing "gas and oil;
to acquire equipment; and for
working Capital. Office-

'

1957.

•A Niagara Mohwak Power Corp. (1/10)
,
■>''
Dec. 20 filed $46,224,200 of convertible debentures due

Fire & Casualty Co. (1/15)
[Kov.,28 filed 99,500 shares of capital stock (par $5).

•

7'.-'..'- *• 7-

4

,

Maine Fidelity

*

•

(Province of) (1/16)
H.->•>
Of 25-year sinking fund deben¬
tures due Jan. 1, 1982.- Price—T0 be supplied by amend- *
ment.
Proceeds—To be advanced to The New Bruns- V
Peoples Finance Corp*. '
7" .7 :'' *5'r I,,.
wick Electric Power Commissioh to repay bank loans;
Nov*. 16 filed 50,000 shares of 80-cent cumulative "con*
Underwriter—Halsey, Stuart & Co. Inc., New York and
vertible preferred stock (par $5). Price—$10 per share.
Chicago. • j,.;, // >. 7
a • Proceeds—To reduce bank loans hnd for Working capital.^
New England Electric System
: ;
Office—Denver, Colo. Underwriter-7Paul7 C. "Kimball
Dec. 3 filed 819,000 shares of common stock
(par $1)
& Co., Chicago. Offering—Expected sometime in Janu¬
to be offered in exchange for capital stock of Lynn
ary.
.7..
Brunswick

New

Dec.

Loyal American Life Insurance Co., Inc. y
/Sept. 28 filed 230,000 shares of common stock (par $1)
to be offered for subscription by common stockholders
of record Oct. 15, 1956 at the rate of one new share for
-^ach three shares held (with an oversubscription privi¬
lege). Price—To be supplied by amendment. Proceeds
—To increase capital and surplus. Underwriters—J. H.
<3©ddard & Co., Inc., Boston, Mass., and Thornton, Mohr
'it Farish, Montgomery, Ala.

:

7", vZ
\
;~75 ■:'
(letter of notification) Vll*^500 shares oi /common
stock (no par). - Price^f$25 per share.7Proceeds.:—. For :
general corporate purposes.'" Office Z-11£10, Gulf "States'
Bldg., ,109 North Akard St., iDallas^.Tex.'' Underwriter—
Newborg & Oo., New York.;." \*r"I ;

Life Insurance Co.,

7'' Peerless

Oct. 8
•

_

■

•

.

.

,*

y

\

Peabody & Co. and Eastman Dillon, Union -Securities
& Co. (jointly). Bids—Expected.-' td:be:received*Xrp to
ill a.m. (EST) oh Jan. 9,
. ..
-V
7,
:

—

-

(1/15)
.Dec. 4 filed $20,000,000 of first mortgage bonds due
1987. Proceeds—For reduction of bank loans and con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
fit Co. Inc.; Equitable Securities Corp. and Eastman
Gas & Electric Co. cn the basis of two NEES shares
•Dillon, Union Securities & Co. (jointly); Kuhn, Loeb
for each Lynn share. Dealer-Managers—Paine, Webber,
iU Co;; Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner
Jackson & Curtis, and F. S. Mpscley
Co., both of
Heahe, Kidder; Peabody & Co. and Harriman Ripley •'/
Boston,■ Mass.
K "V v/';2•
:ic Co. Inc. (jointly); Salomon -Bros. & Hutzler; The
New England Telephone & Telegraph Co. (1/8)
First Boston Corp., and Glore, Forgan & Co. (jointly);
Dec. 11 filed $35,000,000 of 29-year debentures due Jan.
White, Weld & Co, and Shields & Co. (jointly). Bids
1, 1986. Proceeds — To repay advances from American
—Expected to be received up to noon (EST) on Jan. 15,
Telephone & Telegraph Co. (the parent). Underwriter—
1957.
\; •,
To be determined
Louisiana

—May be determined by. competitive/bidding. Probable
^bidders: Lehman Brothers;- Blyth &c
ihe;,' K^pUteiV

,

.

50,000 shares of class A common stock
(par $2) and 50,000c shared' of class B common, stock
(par $2). Price—To be supplied by amendment. PiOceeds
—To selling stockholders. Office — Little Rock* Ark.
Underwriter
Equitable Securities Corp., ftashville<
Tenn., and New York, N. Y. Offering — Indefinitely
Nov. 15,1956 filed

offering will be made by

c

*'

Chronicle...Thursday, December 27,1956

(2824)

sion and

Proceeds—For expan¬

working capital. Underwriter—Morgan Stanley
& Co., New York.

Volume

184

Number 5598

The Commercial and Financial
Chronicle

...

if Sears Roebuck Acceptance Corp.

(1/10)

Sunrise Fund,

Dec. 21 filed
$50,000,000 of debentures due 1972. Price
—To be supplied by amendment.
Proceeds—To purchase

Dec.

customer installment receivables from the
parent, Sears,
Roebuck & Co. Underwriters
Goldman, Sachs & Co.;
Halsey, Stuart & Co. Inc.; and Lehman Brothers; all of
New York and Chicago.
General

Insurance

Sept. 24 filed 95,714 shares of
which

50,000

shares

are

shares

to

are

Co., Atlanta,

stock (par $5), of
offered publicly; 20,714

to be offered in

Robinson-Humphrey Co.,

—

Offering—Date indefinite.

Inc.,

'

<-

'

stock

mon

private sale.

Proceeds—To

-

A.

Underwriter—None.

P.

Telephone. Co.

bank

pay

of

loans,

appliances

capital.

and

financing
air

of

time

conditioners

Underwriter—Franklin

•

Proceeds—

*

-

.

-

(See also next paragraph.)

Business—A non-diversified

ment investment
company.

closed-end

Oct.

on

10.

.(See

com-

preceding

para¬

♦of

Dec.

31, 1956).

Price—$3

buy or establish a complete
house; other expansion and inventories.

-

Southern

Dec.

5

Syndicate,

•«

(letter

of

Underwriter—

&

Southern

Price—64 V2 cents per;share.

holders.

>

? for

and

for

construction

offered

*

In

Fort Wayne,

sales

of-

food

Underwriter—None.

freezers

and
>

_

„

.

by them.

will

be

Elvin C.

Proceeds—For

shares of stock.

new

Brothers,

/stock

5%

(par

(amended

convertible

shares

of

preferred
net

$5)

preferred

common

share

—F01

per

stock

and

company $5 per

mately S5.21

Dec.

stock,

to

two

13

be

to

300,030

par

offered

%

;

■

Rock

Stone

&

and

in

units

N.

J. '

'

'

'

.

Securities
'

,

-

unit

in

United

construction

States

'

of

-

one

Prise—To
or

funds.

approxi¬

.

Proceeds

'

Corp.,

j

Jan.

B.

—

Standard Oil Co. (Ohio) (1/7-11)
" 1 ^
pec. 18 filed $25,000,000 of sinking fund debentures

'
due

and its two wholly-owned
States

'




,

(3/26)

bond

new

a

issue

of

/

■

and improve¬
Underwriter—To be determined by cqrqpetitive
For

—

additions

Bids

—

Tentatively

26..

'

.

scheduled

'

z

to

received

be

'

•

on ;
•-

.

Securities''^ £oi;and Kuhn; Loeb"& Co.

(jointly); The First Bqston, Cqrp.bWafrwian Rip)ey &
Co. Inc. Bids—Tentatively.expected March 19. Registra¬
tion—Planned

for

Feb.

13.
^

Associated Truck Lines,

<

Inc.

y

u

corporation plans to issue and
6% convertible subordinated debentures
due Oct. 1, 1971 at par and 75,000 shares of common stock
(par $3) at $11 per share (the latter for the account
of selling stockholders). Proceeds—From sale of deben¬
tures, for expansion and working capital. Business—A

Oct.

11

it

was

announced

sell $1,000,000 of

short

haul

miles

or

motor

common

carrier operating

over

3,30C

»

in Illinois,

Indiana, Michigan and Ohio.
Rapids, Mich. Underwriter—Paine, Webber, Jackson & Curtis, Boston, Mass., and New York,.
N. Y.
Offering—Indefinitely postponed
routes

Office—Grand
-

(A. J.)/Markets,

Bayless
Nov. 27 it

reported

was

Inc.,

company

Phoenix,

Ariz.

plans to issue and sell

Underwriter — H. M.
Byilesby & Co., Inc., Chicag.o 111. Registration—Planned
in January.
Offering—Expected in mid-February.

750,000 shares of common stock.

Burnsiae

River

Brazos

Nov.

12

it

Gas

Co.

reported

was

(Texas)

that

early

registration is ex¬

pected of approximately 200,000 shares of common stock
of this company, formerly Upham Gas Co. Price—Ex¬
pected to be about $5 per share. Proceeds—To selling
son,

Venezuela

Diamond

Wheland Co.,<

New u4

+

by competitive bidding.

authorized

Proceeds

Dillon, Union

subsidiaries.

—

-V

•

Un-

program.

lumbia! Securities Co., Inc., of Florida, Miami,/Fla.

•

Price—To be supplied by amendment. Pro¬
ceeds
For capital expenditures and
working capital.
Underwriter—F.. S. Moseley & Co. of Boston and
V

construction

Telephone & Telegraph Co.
directors

the

'

Air

Office—Philadelphia, Pa. Underwriter—Mortimer
&
Co., Inc., New York. Offering—Date

Price—To be under

10 shares held.

Mines, Inc., Miami, Fla.
Aug. 31 filed 1,500,000 shares of common stock. Price—
At par (20 cents per share). Proceeds—For exploration
and mining operations in Venezuela. Underwriter—Co¬
,

;

;
-

Appalachian Electric Power Co. (3/19)
Dec. 24 it was reported company plans to issue and sell'
$29,000,000 of first mortgage bonds due 1987. Proceeds—
To repay bank loans and for construction program. Un¬
derwriter—To be determined by competitive
bidding.1
Probable bidders; Hals#'Stuart &'Co. 'Inc.; Edstinan-

•/'

indefinite.

1, 1982.

'York.v-^

•

•

Hoboken,

Conditioning Corp.
Sepi. 27 filed 600,000 shares of common stock (par 10
cents), of which 50,000 shares are to be offered ;tp^err.ployee?,- distributors and'dealers,'' 50,000 shares, plus
any of the unsold portion of the first 50,000 shares, are
to be offered to the public; and the underwriter will be
granted options to acquire the remaining 500,000 shares
for reoffer to the public. Price—At market prices. Proceeds—For working capital and general corporate pur¬
poses.

costs.
Office
Montreal, Canada.
Underwrites—Hamlin & Lunt,
Buffalo, N. Y.; Allen &
Co. and Cowen &
Co., both of New York, N. Y.; and
Straus, Blosser & McDowell, Chicago, 111.

"

Co.

*

United

*:

-

Blyth

•

<

'

pany

19

ments.

if Union Tank Car Co., Chicago, III.
TsDefe. 21 filed 55,000 shares of capital stock (no par) to
be offered pursuant to an employees' savings and stock
purchase plan for the benefit of employees of the com-

.

Z

«•,

"..bxd&inglProbable bidders:-The/First Boston Corp. and
Haisey, Stuart & Co. Inc.. (jointly); Morgan Stanley &

Underwriter—None.

'

ancl

Gas Co.

To be determined

$250,000,000.

Webster

Drug & Chemical Corp.
Nov. 5 (letter of notification) 150,000 shares of class A
stock (par one cent).
Price—$2 per share. Proceeds—
For equipment, raw materials, working capital and other
corporate purposes.
Office—42 Newark St., Hoboken,

600,000
of

Dec.

March

*

—

American

per
Underwriters—

7 Tyrex

Underwriter—Dennis

sales

White/ Weld & Co. and Drexel & Cc.& Co.,--Inc.; The. First Boston Corp:
Offering—Expected early in 1957.

—

J.

expanding

for

r. >^

,

.

Proceeds—For

market.

(jointly);

Corp., Leesburg, Va.
Nov. 28 filed 500,000 shares, of 6% cumqlative convertible
preferred stock. Price—At par ($1.50 per share). Pro¬
ceeds
For asphalt plant, equipment,
working capital

N.

capital

Probable bidders:
'

Material

and other corporate purposes.

allowed

$5,

shares).
unit in Canadian funds,
common

the

,

Secu¬

shares

derwriter

Thomson

,

Natural

share for each

new

:

rPrice—.$150

construction.

States:-Lehman

American

/

the

Pipe Lines, ltd. •< • 7 > -«■ - <
■<
$80,000,000 ^Canadian) of subordinated
1986 and 4,000,000 shares of common
(par $1-Canadian) to be offered in units of $100

half of January.

McCary/

Anniston, Ala.;.is President.

for

Corp. and White, Weld & Co. In Canada: Nesjk Co. Ltd.;, Wood, Gundy & Co. Ltd.;
McCloud, Young,' Weir & Co., Ltd.; and Osier, Ham¬
mond & Nanton, Ltd.
Offericf#—Expected in the last

Spar-Mica Corp., Ltd. (1/15)
Oct."29 filed 400,000 shares of 5% convertible
preferred

r

•

10, it was* announced company: proposes to sell
442,114 additional shares of common stock through a rights offering to its stockholders on the basis of one ;

,

due

Tri-State

commission

tq dealers for sales effected
of

'

provide^ working

.

filed

United

bitt

in

selling

-

Dec.

,

a

May 9.

011

Go,-* -New- Tork.^..

Securities
.

exchange for the class A
stock of Capital Fire & Casualty Co. and common stock
7 of Allied Investment Corp. Price—$2 per share. Pro¬
ceeds—For purchase pf stock of
Capital and Allied firms
and for, purchase
,oi U./S. .Government bonds. Under¬

writer—None, but

company

rentals... Underwriter—Eastman Dillon, Union Securities

*

installment

26

unit.

(par $1),
publicly 238,954

be

plans to issue and sell
Underwriter—
Probable bid¬
ders:
Halsey, Stuart & Co. Inc.; Eastman, Dillon, Union
Securities & Co.; Equitable Securities Corp. and Drexe!
& Co. (jointly); Lehman Brothers; Harriman Ripley &
Co/ Inc. and Goldman, Sachs & Co. (jointly); Blyth &
Co., Inc. and Kidder, Peabody & Co. (jointly); Morgan
Stanley & Co.
Bids—Tentatively expected to be re¬
ceived

per

of debentures and five

Southwide Corp., Anniston, Ala.
Sept. 12 filed 450,635 shares of common stock
of which 211,681 shares are to be offered
to

the
Jan.

(letter of notification) 25.000 shares of common
(no par).
Price — $10 per share.
Proceeds —To

debentures

filed

-are

on

Trans-Canada

Nov.
•

To repay bank
Underwriter —

—

program.

corporate purposes.
Underwriter—Southwestern
rities Co.y Dallas, Texas.

shares

effec¬

of

(5/9)

reported

was

To

7
$1).

.

r

The

Acceptance Corp., Houston, Tex.;

company.

Resources, Inc., Santa Fe, N. M.
1,000,000 shares of common stock (par 25
cents). Trice—$5 per share./Proceeds—To exercise op»tions, purchase additional properties and for general
8

acquires at least 85%
purchase offer will expire

company

stock.

Price—$5

finance

Southwestern

June

subscription

becomes

Dec. 17

Dillon, Reed & Co. Inc., New York.
V

The

stockholders

Underwriter—None.

stock

oversubscription privi¬
30, 1957. Price—To be

lege); rights to expire on Jan.
supplied by amendment. Proceeds
leans

Guarantee

it

17

about $19,000,000 of first mortgage bonds.
To be determined by competitive bidding.

^American Machine & Foundry Co.
Dec. 21 directors voted in favor of a $13,000,000 to $14,000,000 issue of subordinated convertible debentures to
be offered for subscription by stockholders.
Proceed®—

stock

an

Buffalo,/

the basis of $15.25 in

on

Indiana

,

Proceeds—To selling stock¬

(with

of

$1). Underwriter—Baker, Simonds & Co.,
Detroit, Mich. Offering—Expected in February.
if Alabama Power Co.

share oC Title Guarantee stock in

if Town & County Securities Corp^,

Underwriter—None.

each 14 shares held

a

Corporation

-

ible stock (par

Dec.

common stock (par
share. Proceeds—For working capital.
Underwriter—S. D, Fuller &;£o.t:New
Yor|s. Offering—
Expected sometime in January.
"7 *-■>.Z j-r-

Bank

Southwestern/Public Service Co. (1/16)-'
Dec. 21 filed 291,967 shares of common stock
(par $J)
to be offered for subscription
by common stockholders
of record Jan. 16, 1957 on the. basis Of one new
share

*

Insurance

,

$1).

Inc.'

Union Oils ltd., Toronto, Canada
filed 750,000 shares of capital stock (par

Aug. 24

Title

Tower

i Southern

.

'

it-was

4

Dec. 7 filed 200,000 shares of class A

Bldg., Atlanta,
Underwriter—Allied Investment Co., Atlanta, Ga.

Ga.

Title

Lockport, N. Y.,

latter

stock.

notification)

Citizens

.

10, 1957, unless extended to Feb. 28, 1957. Price—To fee
supplied by amendment. Proceeds—To acquire Abstract

convertible

Office—1206

if

Abstract

and at par to the public/ Proceeds—For
expansion of its
present activities in the real estate and mortgage field.

*

&

4/10ths of

to

tive

$130,000 series A regis-,,
debentures /due Feb. 1, 1967 to be
offered first to stockholders-for a
14-day period; .then>!
to the public. Price—90% of
principal to stockholders;

;;tered

and

offer

Underwriters, Inc., Atlanta, Ga.. Philip H.
Dohn, Jr., and Roger H. Bell, sole stockholders of the
underwriter, are officers and directors of Southern
Sportsman, Inc.
^
"
'.f
1

Abstract

exchange for each share of Abstract.
~

share. Pro¬
sporting goods

Investment

'

filed

Rochester and

per

ceeds—To

21

cash

be

before

or

Mortgage Corp., Chicago, III.
reported this company (to be surviving"
corporation following merger of First Mortgage Corp.
and Irwin Jacobs & Co. of Chicago)
plans a public
offering of $1,000,000 class A 6% participating convertDec.

eight shares held; and the remaining 26,152 shares are
to be offered, together with
cash, in exchange for stock

..

reserved on exercise of options to be
granted to employees of the company (latter exercisable
on

redeem

Prospective Offerings

& Trust Co., New York
61,902 shares of capital stock (par $8) of
35,750 shares are to be offered for subscription
by stockholders on the basis of one new share for each

Nov.

,V
.

to

To

—

Advance

Title Guarantee

.

Sportsman, Inc., Atlanta, Ga.
Dec. 7 filed 486,000 shares of common
stock, of which
375,000 shares are to be publicly offered and 111,300
are

of

Price—To

1976.

Proceeds

-

stock

mon

be received up to

also

•

shares

-

Underwriter—None.

Thermoray Corp.
June 29 (letter of
notification) 380,000 shares of

Southern

*

Underwriter—None;

manage¬

which

(EDT)

center.

.

fields.

(par 10 cents). Price — 75 cents per share.
Proceeds—For inventory, working capital, etc. Business
—Electrical heating. Office—26 Avenue
B, Newark, N. J.
Underwriter—Eaton & Co., Inc., New York.

a.m.

due

bentures

ment.

Hutzler. Bids—Had been expected to

*

Wilson & Co., Inc.
*
Aug. 28 filed $20,000,000

Dallas, '

-

..

outstanding stock of Southern New England Telephone
Co. Proceeds—To American Telephone &
Telegraph Co.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Blyth & Co., Inc.;
White, Weld & Co.;
Putnam & Co.; Chas. W. Scranton & Co., and
Cooley &
Co. (jointly); The First Boston Corp.; Salomon Bros. &
11

,

offering to be made by offioars and agents of company.

working

Co.,

recreation

ness—Mountain

sales ;

payment

Theatrical

V Southern Niew England Telephone Co.
Sept. 19 filed 1,173,696 rights to purchase 146,712 shares
of new capital stock (par
$25) to be issued to American
Telephone & Telegraph Co., which owns 21.61% of the

.

subordinated cumulative
6,000 shares of common
(no par) to be offered in units of a $400 debenture and three shares of stock.
Price — $500 per unit
Proceeds—For construction and working capital. Bustof 6%

13 filed $800,000

debentures due Dec. 1, 1976, and
stock

and' for

Securities

•

20-year sinking fund de¬
be supplied by amend¬
Interests Plan, Inc., New York
presently outstanding,
City
Oct. 30 filed 52,000 shares of class A stock
first mortgage bonds, to repay bank loans and for ex- '
(par five
cents) and 28,000 shares of class B stock (par five cents).)/ pansion program.
Business—Meat packing firm.
UnPrice—Of class A, expected at $10 per share in lots of/ derwriters—Smith, Barney & Co.; Glore Forgan & Co.
not less than 25
shares; of class B, expected at par. Pro- : and Hallgarten & Co., all of New York City. Offering— *
ceeds—For investment in theatrical and entertainment
Indefinitely postponed.
\
Texas.

Proceeds—To pay advances from American Tele-

graph.)

;

Boston, Mass.

Wildcat Mountain Corp.,

Aug.

Scott,

;•

(par $1)/ Price—$2.50 per share.

.

phone & Telegraph Co. (approximately $15,800,000) and
additions and improvements.: Underwriter
—None. Offering—Delayed indefinitely by
company on
4.

by

or

Texas Fuel Corp.,
Clarksville, Texas (1/2-4)
Nov. 29 (letter of
notification) 120,000 shares of com¬

7

for property

Oct.

Proceeds—Together with proceeds from private sale.oi

Business—Pres¬

first mortgage

the selling stockholder.

Sept. 19 filed 079,012 shares of capital stock (par $25)
to be offered for subscription
by stockholders of record
Oct. 1, 1956 at the rate of one new share for each
eight
shares held; right to- expire on Nov. 2.
Price—$30 per
share.

stockholder.

Price—$5

bonds, and for expansion program. Underwriters—Hemphill, Noyes & Co., New York; Courts &
Co., Atlanta, Ga.; and Equitable Securities Corp., Nash¬
ville, Tenn. Offering — Temporarily postponed.

To

Southern New England

investment.

company's account and 61,000 shares for a selling'
Price — To be supplied by amendment,

the

"

capital stock.

$1,500,000 4%% first mortgage bonds and $900,000 of ;
3-year unsecured 4 %% notes to a group of banks, will
be used to retire outstanding series A and series B 5%

change

At¬

•

of

Texas Calgary Co.,
Abilene, Texas
Sept. 25 filed 3,700,000 shares of capital stock (par 25
cents).
Price—At market from time to time on the
American Stock Exchange or the Toronto Stock Ex¬

common

lanta, Ga.

shares

72, L. I., N. Y.

common

be

Inc., New York, N. Y.

500,000

Proceeds—For

come an

Ga.

exchange for 10,357 shares of
stock of Progressive Fire Insurance
Co.;
and 25,000 shares are to be offered to certain
other persons;
Price—To public, $14.50 per
share; and to certain
persons, $13' per share.
Proceeds—To pay bank loan.
Underwriter
The
$10 par

filed

>

ently is.a closed-end investment company but will be¬
open-end company in March, 1957. Distributor—
Sunrise Capital
Corp., 37-12 84th St., Jackson Heights

—

Southern

3

share.

per

33

(2825)

Chattanooga^ Tenn.

•

May 23 filed $2,000,000 of convertible subordinated debentures due June lr 1976, and -136,000 shares of common

stockholders.

Underwriters—Shields

if Brunswick-Balke-Collender
17 it

Dec.
>

&

Hammill & Co.? both of New York J

*

was

--

7

Co.

and

Sheai-

i

*>

1

Co.

'

reported company may do some financing

*.;

•

«■

-

Continued

iow

vaae*$4'

34

(2826)

The Commercial and Financial Chronicle

Continued
the

in

from

Carolina
between
bonds.

Power & Light

was

—

Lehman

Brothers,

would like to

Co.

and

$15,000,000

Nov.

$20,000,000

first

of

mortgage

by competitive
Stuart & Co. Inc.;

North Carolina P. U. Commission
to

of

its

common

stockholders

stock

common

on

for

the basis of

one

to

new

graph

Co.

shares

in

(of

Bell

stockholders)

writers

Probable bidders:

are

Jan.

22

expected
for

Nov. 12 it

&

Co.,

Inc.,

Corp.

.

—

-v.

1

'

*

''

u

trust

the

to

be

received

purchase

from

by
it

the
of

company

Chicago.

Electric

Illuminating Co.

75.000

15,) H.. R
is planning

Searing,

convertible debentures.

Probable

Proceeds—For

Kaiser

construction pro¬

Consolidated
Nov.. 21 it

Dec

iU

14

was,.anppunc^,company has applied to the
Commerce^CornmissiQn for authority to issue
and sell
250,000 shares of common stock
(par $5). Pro¬
ceeds—Together with funds from sale of
up to $8,436,740
long debt securities, to
acquire six Eastern lines. Under¬
writer
Blyth & Co., Inc., New York and San
Francisco
(Calif.).

Lehman

Tegen,

President,

^Cn^0 additional guing
df5-. are,
647,000
shares
basjl of
about

t0

of

be

announced

offe*ed

common

that

stock

(par $5)

March

11; rights to expire
& Beane

on

previous offering to stockholders.




March

acted

as
'

29.

on

of

& Co.,

or

Merrill

clearing agent
*

owned

,

announced

was

Brothers and

company

plans to.issue and

New

and

company

by

bidders:

Halsey,

Stuart

&

New York State Electric & Gas
.

the

Henry

J.

issue

of

named

to

its

common

$25,000,000
later.-

program.

Goldman,

Oct.

Co.

Inc.;

Salomon

Sachs

of these
Proceeds—For

Underwriters—
&

Co., both of

it was announced company plans to sell in the
of 1957, $25,000,000 of debt securities and an
additional $20,000,000 in 1958.
Proceeds — To finance

construction

Underwriter—To

program.

by competitive bidding.

be

determined

Probable bidders:

Halsey, Stu¬
art & Co. Inc.;
Kuhn, Loeb & Co.; Blyth £ Co. Inc. and
Smith* Barney & Co. (jointly); The First Boston Corp.
and Glore, Forgan & Co.
(jointly); Harriman Ripley &
Co.
Ipfc Kidder, Peabody & Co. and Salomon Bros. &
Hutzleif (jointly).
Norfolk

&

Western

Ry.

(1/16)

Bids^afe expected to be received by the company on or
about/J^n. 16 for the purchase from it of approximately

$4,650,0b0 equipment
ders: fedsey, Stuart &

trust

certificates..

Probable

Probable

bidders:

cpmlqon stock to its common stockholders at the rate

of one

yew share

for each

end:/ofv/anuary, 4957

10 shares held at

(with

ilege,)X^roceeds—For

or

about the

©vd^subscription

an

additional investment in

priv¬

common

stock

of'Pennsylvania Power Co:;-^-subsidiary, and for
construction program. Underwriter — To be determined
by comjpetitiye bidding. Probable bidders: Wh.te, Vvetd
&

Qo.;^|Lehman Brothers and Bear, Stearns & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane and
Kidder,/peabody & Co. (jointly); Morgan Stanley & Co.;
The

Halsey, Stuart & Co. Inc.;

States

Telephone

Fijrst Boston Corp.-

;

-

20

the

Pacific Gas & Electric Co.

;

'

Telegraph

Co.

directors

approved a proposal to issue and
sell $35,000,000 debentures.
Proceeds
To repay bank
for '.construction

prdgram. Underwriter—TO
by competitive bidding.' Probable bid¬
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Morgan Stanley & Co.; Drexel & Co. and Dean Witter
&
Co.
(jointly).
Bids—Expected to be received on
determined

ders:

Jan.

29.

bonds.

Proceeds—For

construction

determined

Probable

Halsey,

bidders:

by

Stuart

Co., Io£; The First Boston Corp.
Jan."?2.

on

.

plans'
mort-»-

program.

Un¬

competitive bidding.
& Co. Inc.; Blyth &
Bids—To be received

-

-

.

Pacific Northwest Power Co.

—

and

(1/22)

5^'the company announced it has tentative
issuejand sell $35,000,000 of first and refunding

gage

derwriter—To !be
&

bid¬

Co. Inc.; Salomon Bros. & Hutzler.

4 Ohio Edison Co. Decf 2rCcompany applied to the Ohio P. U. Commission
for ahfhority to issue and sell
580,613 additional shares
of

(1/10)

Corp.

24

Spring

plans to offer up to

debentures

be

or

Probable

the basis of $100 of debentures for
each
stock held.
Stockholders on Jan. 30 will

Price—To

expected

to be received by the company in
February for the purchase from it of ap¬
proximately
$6,400,000
equipment
trust
certificates.

on

an

York, Chicago & St. Louis RR.

are

January:

to

be

'

Salomon

Dec.

loans

-

Co.; Blair & Co. Incorporated; The First Boston Corp4 ;
Equitable Securities Corp. and Eastman. Dillon, Union <
Securities & Co. (jointly); Kuhn, Loeb & Co. and A. C. J
Allyn.&! Co. Inc. (jointly); Kidder, Peabody & Co. and
StoneWebster Securities Corp.
(jointly); Lehman
Brothers. Offering—Expected in March, 1957.
*
;
'
Bids

Underwriter—The

(1/29)

,.

Jersey Power <& Light Co.

able

and

York.

Nov.

L

Stuartr &'

—

writer—To be determined by competitive bidding. Prob¬
bidders: Halsey, Stuart & Co. Inc.; White, Weld &

Underwriter

Chicago

Inc.

convertible

Brothers

Mountain

the

on

—

Salomon Bros. & Hutzler.

approximately

one new share for each 15 shares held

Lynch, Pierce, Fenner

of

authorizing

stalments.

Underwriters—Merrill Lynch Pierce Fen¬
ner & Beane and
Kuhn, Loeb & Co., both of New' York
Offering—Not expected until after
Jan. 1, 1957.
General Public Utilities
Corp.
1

*

company plans to issue and sell $6,000,000 of first mort¬
bdnds. Proceeds—For construction program. Under- '

certificates, series G, to mature in 15 equal annual in¬

Proceeds—For

•

Bros^ j&. Hutzler.

companies

Missouri Pacific RR.

production.

early in
competi¬

Probable bidders:

$5,000,000 of first mortgage bonds. Underwriter—
by competitive bidding.. Probable
.bidder^: Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh-

Bids are expected to be received
by the company on Jan.
-10 for the purchase from it of
$4,875,000 equipment trust

expansion
of facilities in order to
place the DC-8 jet airliner into

F.

Offices

The First Boston
CorplIBids—Not expected to be received until May, 1957.

President, announced that
$25,000,000 convert¬

A.

Mo.

body^ Co. and Drexel & Co. (jointly);

the pompanyi plans to issue
and sell
ible subordinated

plans to issue

company

mortgage > bonds
determined by

gage

Metropolitan Edison Co.
-v'
hi
Se^t. 12 it was announced that company is considering
thb sale of $22,000,000 first
mortgage bonds in the next 1
16 months. Underwriter—To be determined
by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.'; White, Weld & Co.; Blyth & Co., Inc.; Kidder, Pea¬ ,

Douglas Aircraft Co. (2/4-8)
iNov. 19, Donald W.
Douglas,

:

NewL Orleans Public Service, Inc.
13, Edgar H. Dixon, President, announced that this *

Inc.

announced

was

on

New

i

-

Corp., New York.

debentures.

company plans a public
offering in January, 1957,
of about
$8,000,000 convertible subbrdinate
debentures
Proceeds—For expansion
program "and working capital.
Underwriters—Goldman, Sachs & Co. and R. W. Pressprich & Co., both of New York.

15

stock.

common

working capital and expansion

that

announced

of

of certain other assets.

(R. H.)

it

shares

vote

Dec.

debentures.

Boston

19

the

or

stockholders

Interstate

Daystrom, Inc., Elizabeth, N. J.
18, Thomas Roy Jones,
President,
the

of

$12,377,000

ThqJ&st Boston Corp.

preightwayst Inc.

Industries,

Co.,

Macy

be determined by competitive
bidders:
Halsey, Stuart & Co. Inc.;

Morgan Stanley & Co.;

shares

&

securities
First

*

*

Bros. & Hutzler (jointly); Eastmafi Dillon, Union Securities & Co. and
White, Weld J
& Co.^(jointly); Equitable Securities Corp.; The First '
BostOrf "Corp.; Merrill Lynch, Pieroe, Fenner & Beane.

1, 1957 on its 4%% term loan may have to be provided
by the creation of debt by, or the sale of equity securi¬
ties, of this corporation or Henry J. Kaiser * Co., or
through the public or private sale of a portion of the

Underwriter—May

bidding.

additional

28, E. E. Trefethen, Jr., Executive Vice-President,
that it is anticipated that a
portion of the funds
necessary to meet the $25,000,000 installment due
April

be asked

be

h

be^ determined

..man

stated

com¬

To

.

-

sell

Nov.

authorized issue of
$125,000,000

an

(1/9-15)

Casualty Co.
reported company plans to issue and sell

was

Kaiser

issue of not to exceed $55,087r
380 of convertible debentures
early in 1957, probably the
latter part of
February. They will be offered to common
stockholders for subscription. Stockholders will

first

of
—

Inc.^Salomon Bros. & Hutzler.

To

was announced company plans to issue and
$8,000,000 of first mortgage bonds. Underwriter—
To be determined by
competitive bidding.
Probable
bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody &
Co.; The First Boston Corp.; White, Weld & Co.; East¬
man
Dillon, Union Securities & Co., Salomon Bros. &
Hutzler and Merrill Lynch,
Pierce, Fenner & Beane
(jointly).

will probably offer

bidding.

New

Reconstruction and

("World Bank")

$10,000,000

Sept.42 it
\

Sept. 12, it

an

Feb. 5 to approve

for

sett

Halsey,

Co.

be

sell

Power Co.

announced

Underwriter—May

Jersey Central Power & Light Co.

5.

Chairman,

Bank

Co., St. Louis,
Bloomington, 111.

Consolidated Edison Co. of New
York, Inc.

pany

1960, amounting

Proceeds—To repay bank

construction.

;

Nov.

—White

early in 1957 some additional common
stock, to finance part of its construction program. Under¬
writer—None.
Dec.

and

Interstate Fire &

bidding. Probable bidders: Hal¬
Co. Inc.; Dillon, Read & Co. Inc. and The
(jointly); Lee Higginson Corp. and Salomon
Bros. & Hutzler
(jointly); Eastman Dillon, Union Secu¬
rities & Co., and Glore
Forgan & Co. (jointly). Bids—
Tentatively scheduled to be received on March 5. Regis¬
&

1959

company

$20,000,000

a

RR. (1/10)
Bids ar^. expected to be received
by this company on
Jan. 10 for the purchase from it of
$1,400,000 equipment
trust certificates.
Probable bidders:

secu¬

Brothers, Goldman, Sachs & Co. and The First
Corp., who underwrote last equity financing.
f

Sept. 26 it

by competitive

announced company

in

one

•

Morgan
Stanley & Co. and The First Boston Corp., both of New

sey, Stuart &
Ohio Co.

was

sold

Additional

,

NeW Jersey, Indiana & Illinois

York.

-

Connecticut Light

be

new

Development

repay bank loans
temporarily--employed
finance plant expansion.
Underwriter—To be deter

to its stockholders

issue of $6,000,000 of preferred
if market conditions make it

Dec. 27, Eugene R. Black, President, announced that this
Bank proposes to make an
offering of $100,000,000 20year bonds.
Price—Expected at a price to yield between
4.30% to 4.40% to maturity.
Underwriters —

Proceeds—To

Nov. 27 it

to

★ International

(3/5)
Dec. 20 it was announced
company is planning to issue
and sell $16,000,000 of first
mortgage bonds due 1987.

Feb.

for

and

Boston

* Columbus & Southern Ohio Electric Co.

for

an

1957

v

-

pres¬

Lehman

was

tration—Planned

in

approximately $14,000,000.

loans

reported company plans to issue and sell
first mortgage bonds in the Summer of
1957. Proceeds—To repay bank loans and
fw construc¬
tion program. Underwriter—To be
determined by com¬
petitive bidding.
Probable bidders:
Halsey, Stuart &
Co. Inc.; The First Boston
Corp.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc., and Baxter, Wil¬
liams & Co.
(jointly); Glore, Forgan & Co.; White,
/Weld & Co.

mined

time

some

England Electric System

Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, East- man Dillon, Union Securities & Co. and
Wood, Struthers J
& Conjointly); Lehman
Brothers; The First Boston
Corp.; Equitable Securities Corp.; Merrill Lynch, Pierce, .*
Fenner/& Beane, Kidder, Peabody & Co. and
White, 1
Weld & Co. (jointly).'
'

Offering—Expected in

utilized, during at least part of 1957.
to

;

by the resultant company, the
aama-of which has. not as yet been determined. Underwriter,— May be determined by competitive bidding.
°robable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co.*-Salomon.Bros. & Hutzler, Eastman Dillon, Union
Securities & Co. and Wood, Struthers & Co. (jointly);
Lehmajd>Brothers; The First Boston Corp.; Equitable
Securities Corp.; Merrill Lynch, Fie* ce, Fenner "& Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly),
Offering—Expected in first half of 1957,
""
1 ,■
: -

tive

feasible, and an issue ol $8,000,UUO in bonds in 1908. tem¬
porary bank loans are available and probably will be

on

share for each five

one

share.Underwriter—Left--;

^ Ross, Memphis, Tenn.

1957;/ Underwriters

Underwriter—H. M. Byllesby &

Power & Light Co.
Prichard, President, announced that

plans contemplate

stock

approximately

per

*

Light Corp., Lawrence Electric Co., Haverhill Electric

and

Indianapolis
Nov. 21, H. T.

Halsey, Stuart & Co. Inc.;

the basis of

on

Price—$40

New" England Power Co.
Jan. 3, 1956, it was announced

-

.

February.

$25,000,000 of

in

Finance

rities will need

Cleveland

.

Stroud

—

and

Pa.

around $6.80 per share.
Co. Inc., New York and

$4,000,000 equipment trust certificates. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Nov.

Underwriter

Price

expansion

Corp., New York
Dec. 10 it was reported
company plans to issue, and sell,
200,000 shares of common stock. Price—Expected to be

ent

-

first mortgage bbnd issue

Hubshman Factors

(1/22)

gram.

Proceeds—For

Co., Chicago, 111.

Cincinnati, New Orleans, Texas & Pacific Ry.

(Mi

capital.

.

Salomon Bros. & Hutzler.

Bids

held.

^o. and Amesbury Electric Light Co., into
during*JL956. This would be followed by

Offering—Probably early in January.

Jan.

on

17 for the purchase from it of $1,980,000 equipment
certificates.

\

later.

14-day standby).

a

Inc.; Salomon Bros. & Hutzler.

* Chicago & Eastern Illinois RR. (1/17)
are expected to be received
by the company

1

(with

Lee Higginson Corp. and White, Weld &
Co.,
both of New York; and William Blair &

to

Tenn.
,

a

capital stock

trie

(par $5), which

Dec. 3 it was reported company may
register this month
an
issue of $30,000,000 long-term debentures. Under-'

(12/27)

Bids

to

named

Household

Halsey, Stuart

I

be

early registra¬

stock

common

offering to common stockholders of
15, 1957 at the rate of one new share

about Jan.

Philadelphia,

Bids will be received by the
company up to noon (EST)
on Dec. 27 for the
purchase from it of $4,200,000 equip¬
ment trust certificates. Probable bidders:
& Co.

for

plans

company

108,160 shares of

working

R. S. Dickson & Co.

Chesapeake & Ohio Ry.

reported

was

of

intended

record

share for each

Memphis,

Jan. 3y.rl956, it was announced company plans to merge
its subsidiaries, Essex County Electric Co., Lowell Elec*-

(1/15)

for each two 3hares held

its
to

Paper Co.

tion

Telephone & Tele¬
rights to 14,464

february, 1956, sold
66,640 share offering

a

it

17

are

the

Commerce,

.

Hamilton

Price—At par ($100 pef share).
Pro¬
ceeds—To reduce bank loans and for new construction.
Southern

of

wich

58,310 shares

of

announced stockholders will vote Jan. -8
proposal to offer 25,000 additional shares

was

approving

on

issue of preferred stock.

one

J3 it

shares

Dec.

four shares held.

Underwriter—None.

Nov.

New

authority to offer

additional

an

with

up

Bank

Thursday, December 27, 1956

(1/9)

$18,000,000 will be put into cap¬
during the fiscal year to end Nov. 30,

investments

—To

was

come

1957.

determined

be

Telephone & Telegraph Co.
reported company has applied

it

16

National

ital

bidding. Probable bidders: Halsey,
Kuhn, Loeb & Cdv and A. C. Aliyn & Co. Inc. (jointly);
W. C. Langley &
Cp. and The First Boston Corp. (joint¬
ly); Equitable Securities Corp.; Blyth & Co., Inc.; Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane (jointly). Offering—Expected in 1957.
Carolina

Co.

He added that close to

reported company plans to issue and sell

Underwriter—To

Rubber

&

4, M. G. O'Neil, Executive Assistant to the Presi¬
dent, said the management was working on a plan to
revamp
the capital structure and that the company

New York.

Oct. 15 it

Tire

Dec.

Underwriter

future.

near

General

33

page

...

Aug.

it

000,000 bf
that
up

was

reported company plans to sell about $32,f6 the organizing companies apd

common stock

arrangements

are

expected

to

be

made

to

borrow

to $60,000,000 on a revolving bank loan which will be
through the sale of bonds to institutional in¬

reduced
vestors

as

well

as

the

general public.

Proceeds—Tq

pay,

'

Volume 184

Number 5598... The Commercial

cngfeF-inancial Chronicle
35

(2827)
in

part, for cost of
$217,400,000.

new

'mated

power,

/

-

■ -/

project to cost

esti-.

an

yr%;.

;

Pennsylvania Electric Co. -■*
' ~v
Sept.' 12 It was announced company -plans to issue and
sell $6,000,000 of first
mortgage bonds. UndeWftHter—
.

To

be

determined

standing 43,727,585> shares). .The * financing r
mays also
an
offering of debentures not exceeding $1G0,.000,000.4 Proceeds
For .exploration and
'development
..costs .and for plant
expansion./Underwriter —Morgan
'•Stanley & Co.jfNew York." «■
e
'
.

i.

stock

■

(par $5)

on

12 shares held.

105,000 additional shares of common
the basis of one new share for each

Price—To be named later. Proceeds—To

increase capital and'surplus. . Underwriters—A syndicate
of local and national investment houses whose .identity*

•

:

bidding.
ProbableSouthern California Edison Co.
bidders: Halsey, Stuart & Co. inc.; Merrill
.(2/19)
Lynch, Pierce*
Dec. 27, E. R;
-Peterson, Financial Vice-President, an•Fenner & Beane, Eastman Dillon, Union Securities &
nounced that the company plans to .issue and sell $37,-Co. and White, Weld & Co. (jointly); Equitable Securi¬
500,000 first and refunding mortgage bonds. 'Proceeds—
ties Corp.; The First Boston
Corp.; .Harriman Ripley &
"To help finance construction
Co. Inc.; Kuhn, Loeb & Co.
program. Underwriter—To
be determined by competitive bidding. Probable bid¬
•
ders: Halsey, Btuart & Co.
Phillips Petroleum Co; (2/7)
Inc.; The First Boston Corp.
Dec. 17, K. S. Adams,-Chairman of the
and,Dean Witter & Co.
Eoard, announced
(jointly); Blyth & Co., Inc.;
that the company plans to issue and sell
tKuhn, Loeb & Co. Bids—Tentatively, expected to be
about-$171,000,000 of convertible subordinated debentures to stock¬
received on Feb. 19.

competitive

by

subscribe* for

to

.include

will be made public at a future date. William R. Stadtii
& Co. and Blyth & Co.; Inc.: underwrote rights offering
in

1

July, 1954.
Wabash

v

,

RR.

(1/9)
Bids are expected to be received by the company on
Jan.
9
for
the > purchase
from it of approximately

.

,

holders
to

of

Feb. 25:

on

$100 of debentures for each 20

stock, held

common

expire

ceeds

the basis

on

shares,"of

Feb.

loans and'for other corporate
Bpston Corp., New

Pro¬
,

Underwriter—-

purposes.

York..?Registration-f-Ex-

,j

/'-/

-

/

Pittsburgh & Lake Erie RR.< <*/24K
Bids

later.-

$86,000,000 of short-term bank

The First

pected about Jan. 16.

^

7;-: with/, rights"

Price—To-be named

To repay about

—

about

•

■

v-X"

★ Southern Co.. '*■.
Dec. 24 it

-

V

of

•

_

'

.

-

—

reported company plans the issue and sale

$30,000,000 -first mortgage bonds. Proceeds—To

bank loans and for

mew construction.
be determined by competitive bidding.

■

repay

-Underwriter—To

Probable bidders:;,
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and"
.White, Weld & Co. (jointly); The First Boston Corp.; •

Blyth & Co., Inc. and

Smith, Barney

&

Lehman Brothers; Harriman Ripley &
Expected to be received early in-1957. -

•

Co., (jointly);
Inc. Bids—

,

Co.
.«

Public Service Co. of Oklahoma: (2/4)

Dec. 10 it

'

<

-

reported company plans to issue and sell
about $12,000,000 of first mortgage bonds due 1987. Pro¬
was

,

.

ceeds—To

repay bank loans and for new construction.
tUnderwriter-r-To be determined by competitive

bidding.
Probable bidders:.Halsey, Stuart & Co.
Inc*; Kuhn, Loeb
& Co. and Eastman Dillon, Union Securities & Co.
(joint¬
ly); Blyth & Co., Inc.; The First Boston Corp.; Equitable
Securities Corp.; White, Weld & Co. and Shields & Co.
jointly); Glore, Forgan & Co:; Salomon Bros. & Hutz-'
Jer.- Bids—Tentatively scheduled for Feb. 4.
V •

*

-

St. Louis-San Francisco Ry.'
Sept. 5 company offered not. exceeding $61,600,000 of
50-year income 5% debentures, series A, due Jan. 1, 2006,
154,000 shares of common stock (no par); and cash
•equivalent to the unpaid portion of the preferred divi¬

*

-

dend

which has been declared
payable in 1956, in ex¬
change for its 616,000 shares of $100 par value 5% pre¬
ferred stock, series A, on the basis of
$100 of deben¬
tures, oner-quarter share of common stock and unpaid

,

-

dividends of $2.50 per preferred share in
each 5% preferred share.»The offer will

exchange for
expire'on Feb.
25, 1957;v Dealer-Manager—Eastman Dillon, Union Secu¬
rities & Co., New York. Exchange
Agent — Tlie Chase
Manhattan Bank, New York.,-*
' • >'•/-

Bids—Expected to be received
r-

Seiberling Rubber Co.

•

etc.

program,

27 it

Underwriter

(1/31)

the' company

announced

was

on

the

basis of not

10-shares

held

pire about Feb.

more

of

as

•;-/

than

about

one

plans early

*

in

to its stockholders
share

new

for

•Valley-National Bank; Phoenix, Ariz*

each

was announced stockholders will vote
Jan. 15,
1957 on approving a proposal of the bank to offer to its

common

stockholders

taken

bond

yields:

place

in

over

corporate

s

.

that

regard.

Now

-

are

that

more

what

yield

•

nearly

might

be

keeping with

termed

normal

/ The atmosphere

tlerwriting

/

J

•

.*r_
..

more

long

term

some

a

Govern-/ oh
re-

shearing

pressure and

fortnight
even

as

away/of

largely,

was

'

^'reflecting

,

the

be

placed

capital it needs to carry

program M ot

is ahead.

may

margins

be- that

pick

up

expansion
v

-

in

the

profit
months

many

larger portion of such

a

capital

in

since

is

it

firms

the

will »have

money

to

new

market,

develop-. smaller balances
remaining out of
temporary earnings for,$uch purposes. / -

withdrawal

of

major

investment

interests from. the scene..

5

r ^

-

*

Some viewed the
marking down
/
*-

of bids

as

inrthe nature of

justrrient/ to

the

changes




an

ad-'

which

The corporate,
market,
.

recent

to

15,

1957 The right

new

,

including

issues/it is interesting

note;, closed the old

year

on

a

slightly firmer basis which could
augur

,The

well for the tasks ahead.

Holds Fort

the final week

wound

year

quiet

as

with

up

marks the

stock.

common

will

be offered

add to their
exercise

period.

only piece of financing in
is Chesapeake & Ohio

In the

of

big

coal .carrier

is

new

to

the

scheduled

to

On

would like to

is

the

companies for

ment

veritable dearth

offerings

find.,

not

difficult

contrary, most
thing, probably

one

get their latest

any new

And

bankers

issue

Pacific

will

of

Co.

for

tap

'on

be

a

of debentures

and

the

the

common

Prince

closed

opening

down

and

the

new

Jup

week *0f

;

Opening 1957

Among

are

first
two

the

of

expected

the

one

new

in

syear

representing

debenture

constituting
to

in

offerings for Scovill Man¬

$10,000,000
other

issues

week

ufacturing Co.,

ing

issuer

holders

issue,

a

the

a

rights offer¬

of

outstanding

the

is

list

America's -$125
tures

a

slated

turnabout

to

Aluminum

come

Largest
Co.

of

will

of

common

"rights."

on

to

Illiaoia

issue of 200,009

an

additional

common 'on

schedule.

Moreover,
slated
near

to

future

of $100

the

enter

World

the

via

an

Bank

market

is

in the

underwriting

million bonds.

Schwabacher Adds
(Special to The Financial Chronicu:)

Telephone

open

&

bids for $35

million of debentures and
ard Oil

equity

million of deben¬

England

Telegraph

of ^additional

.offered

Co. has

route.

New

,(

shares

being marketed by the nego¬

tiated

Interstate

number of

a

Power

the «new

into the market for funds.

ledgers.

the

will bring quite

corporate

Corp.;

Niagara

are ready to^go,
topped by Armco Steel's 1,092,925

'be

in the situation, with a number of

books

now

Power

will

Sears, Roe¬

Corp.;

undertakings also
shares

-

Looking Ahead
second

asking

underwritings
behalf of

Meanwhile

stock

Marine

Drilling and Exploration Co.

The

is

tile Corp.

opening

"

again,

on

Acceptance

Mohawk

combined offering

ort/vbehalf' of

earn¬

for-bids

up

Co.

fOil Pipe Line Co.; and Riegel Tex¬

had

their

Debenture

$9,600,000

'

f•

similar amount of bonds.

on a

buck

equipment

year

only

bids

be made

submit

certificates.

week will

|

$25 million of debenFhcificf Potoer & Ljght "has
out

while5 Idaho-Power
f

major institutional investors have,

are

^

f*

opportunity to '•$20 million of bonds

rights.

an

Southern

trust

registration state¬

amendment.

or

for

Also

Reason for the

of

equipment
which

bids today.

open
*

of
on

an

competitive bidding field,

Rwy's

$4,200,000

/

-

Inc.

stock¬ -bring

Likewise,

holdings: through the

investment

offers

certificates

to subscribe ifor

Ladd, Dayton, Ohio.

Properties;

holders of Hawaiian Pineapple Coi 1 tuT&s.

prospect

probable there will be

>

;

Jan.

Ohio

even

air of

an

ings in

unless

seek

bids

it

upon

ahead,

recognized

year-end

a

its

-•It

age had been disturb-

though it

new

which

,

.♦

ing

ment

of the

the

will

industry proceeds to seek part

as

bit

a *
as

'

Steady

:

,

side

show of interest in the buy-

ing side.

/

was

.securities

fleeting the lifting of

,

>

year ended with the U. S.
ment's

.

.business

the cheerful

bn

tasks that

around^the un-*

given

a

such

trust
as

being in better shape to meet the:
/

of

'relationships

in

&

Seldom has

current

brackets, the, market is viewed

teHVill

record

Chesapeake

period «0f

a

months/In such circles,
Treasury's
had been looked upon as
lagging

orter

of

&

''

have

in

(1/15)

Nov. 27 it

30, 1957; rights to ex¬
19./(At Sept. 30,-1056 there were out-

the right

15

\
Dec. 6 it was announced this company, a newly formed
subsidiary of ACF-Wrigley Stores, Inc., plans to offer
its shares of capital stock for subscription by the latter's
stock, debenture and option holders, the offering to
stockholders to be on the basis of one share of Proper¬
ties stock for each two shares of ACF-Wrigley. Proceeds
—To develop locations principally for use by the parent
company, which may include individual locations, ware¬
house sites and shopping centers.
Underwriter—Allen
& Co., New York.; Registration—Expected shortly.

1,000,000 additional
common
stock, recently authorized by the di¬
rectors, will provide the company with th& additional
working capital it will require for further expansion.

Jail.

■jtS-i

Wrigley

Oct.

.

Jan.

Underwriter—Greene

program.
Underwriter—Paine, Webber,
Curtis, New York. Offering—Postponed in¬

shares of

V

1957 to offer additional capital stock

&

about

or

on

(1/15)

announced Bank plans to offer to its stock¬

was

175,000 additional shares of capital stock on a l-for-4
basis; rights to expire on Jan. 30. Price—$22 per share.

Texam Oil Corp., San Antonio, Texas
1 it was announced that the

Probably

—

holders

definitely.

Incorporated, New York.;

Socony Mobil Oil Co.

Nov:
:

Co.

Dec. 3 it

expansion

Jackson

-

expansion

Winters NationaLBank & Trust Co.

Sylvania Electric Products, Inc.
13 it was reported
company planned to issue and
sell- $25,000,000
of subordinated debentures due
1987
(with common stock purchase warrants). "Proceeds—
For

Sept. 10 it was reported that the
company plans longiterm debt financing and/or issuance of additional com¬
mon stock.
Proceeds—To redeem preferred stocks and
for

Jan. 22.

on

•

Dec.

„

Blair &

offering.

r

-

Pubhc Service Co. of Colorado
was

about $8,000,000 through

gram.
Underwriter—To be determined by competitive
/bidding. /Probable bidders: Halsey, Stuart & Co. Inc.;
,Blair & Co. Incorporated and Baxter •& Co> (jointly); Lynqh,
Merrill Lynch, Pierce, Fenner & Beane "and Stone <Sc
Pierce,/Fenner &-Beane (jointly); Lehman
Brothers;
Webster Securities Corp. (jointly); Kidder, Peabody«&
Eastman Dillon,- Union
Securities & Co. and Equitable 1
Securities (jointly).
Co.; Equitable Securities Corp.; Eastman Dillon, Union
"
Securities & Co.; The First Boston Corp.
Southern Indiana Gas & Electric
Co.
(1/22)
Nov. 16 the company filed with the Indiana
<
West Penn Electric Co.
P. S. "Com¬
mission an application Tor
Dec, 5 it was reported company plans to offer to its
authority to issue and sell
$5,000,009 30-year first mortgage bonds due 1987. Pro¬
common stockholders in March, some additional common
ceeds—To repay bank loans and for
stock. Price
To be named by company (sufficient "to
construction pro¬
gram* /Underwriter—To be determined
raise about $11,000,000 or $12,000,000).
Proceeds—For
by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
construction program and to repay bank loans. Under
Inc.;
Equitable Securities Corp.; Kuhn, Loeb & Co. and Salo*
writer—To be determined by, competitive bidding. Probmon Bros. & Hutzler
able bidders: Carl M. Loeb, Rhoades & Co.; The First
(jointly); Blair & Co. Incorporated;
Kidder, Peabody & Co.; Eastman, Dillon, Union Securi¬
Boston Corp, and W. C. Langley & Co. (jointly); Lehman
ties & Co.; The First Boston
Brothers and Goldman, Sachs & Co. (jointly).
Corp.; White, Weld & Co.
and
Shields
Co.
(jointly).
Bids—Tentatively ex¬
+ Western Light & Telephone Co., Inc. (i/22)
pected to be received on Jan. 22.
Dec. 19,
A. L. Mullergren, President, announced that
• Southern
Pacific Co. (1/3)
the company plans to offer to its common stockholders
Bids will be received
by the company up to noon (EST)
of record Jan. 22, 1957, approximately 65,000 shares of
on Jan. 3 for the
purchase from it of $9,600,000 of equipconvertible preferred stock (par $25) on the basis of
ment trust
certificates, series WW, due in 15 equal an¬
one
preferred, share for each eight shares of common
nual installments.
Probable bidders:
Halsey, Stuart &
stock held. Underwriter—Dean Witter & Co., San Fran¬
Co. Inc.; Salomon Bros. &
Hutzler.
cisco, Calif.
*• Southern
Ry. (1/8)
Western Massachusetts Companies
Bids will be received
by the company up to noon (EST
Dec. 17 it was reported company .plans to issue and sell
on Jan.
8 for the purchase from it of
$5,540,000 equipabout $10,000,000 of .first mortgage bonds in the Spring.
ment trust
certificates, series UU, to mature in 20 equal
Underwriter—To be determined by competitive bidding.
semi-annual
installments.
Probable
bidders:
Halsey,
Probable bidders: Halsey, Stuart & Co. Inc.;'Equitable
Stuart & Co. Inc.; Salomon Bros. &
Hutzler.
Securities Corp.
and Lee Higginson Corp. (jointly);
Southwestern Gas & Electric Co.
(1/22)
Blyth & Co. Inc.; Blair & Co. Incorporated;. Coffin &
Dec. 21 it was announced
company plans to issue and
Burr, Inc.; The First Boston Corp. and White, Weld &
sell $10,000,000 of first
mortgage bonds due 1987. Proceeds
Co. (jointly).
—To repay
approximately $6,000,000 of bank loans and
for new construction.
-Western Pennsylvania National Bank
Underwriter—To be determined
Nov. 13 it was reported Bank plans to offer to its stock¬
by competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.; Equitable Securities
holders 132,812 additional shares of capital stock on a
Corp.; Salomon Bros. &
l-for-3 basis.
Price—$30 per share. • Proceeds—To i in¬
Hutzler; Blyth & Co., Inc.; Lehman Brothers;
Kuhn,
Loeb & Co.; ^Merrill
crease capital and surplus.
Office—McKeesport, Pa.
Lynch, Pierce, Fenner & Beane.

including Feb. 15,
1972." Probable bidders: Halsey* Stuart & Co.
Inc.; Salo¬
Bros. & Hutzler.

Oct. 8 it

expects to raise

company

the sale of first mortgage bonds some time in J957. Pro¬
ceeds—To repay bank loans a»d for construction pro-'

be determined
by competitive bidding.
Probable bidders: The First Boston
Corp.; Morgan Stan¬
ley & Co.;. Kidder, Peabody & Co/ and Merrill

/

in 15 equal annual instalments to and

>•.

was

Underwriter—To

,

expected to be received by this company on
Jan. 24 for the purchase from it of
$6,720,0 »0 equipment
trust certificates to be dated, Feb. 15, 1957 and to mature

-

the

•

reported company plans to issue and sell
/about 1,000,000 additional shares of
common stock.
Di¬
rectors-to meet Jan. 17 to determine
method of

are

mon

Washington Gas Light Co.
}
12, Everett J.. Boothby, President, announced that

Dec.

;'

;

--

$2,000,000 equipment trust certificates. Probable bidHalsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

/ders:

Stand¬

Co., through bankers, will

SANTA

Donald
nected

930

BARBARA,

Calif.

-

•

—

L. Balch has become con¬

with

Schwabacher

State Street.

&

G®.,

33

(2328)

The Commercial and Financial Chronicle.

Merrill
1

*,

Merrill

Griswold

chairman

the

of

of

Dec.

.

Investors

Trust

became

chairman of the trustees
held

that

position

named

in

1932.

until

the

todian Funds.

close of 1953 when he assumed his

position.'

present

Griswold

Mr.

M.

serve

as

advisory
He

played

vestment

the

tax

drafting

provided

which

Federal

all

of

of

is

statistical

a

had

up

total

.major

no

$278

billion;

Keystone

war,

economists

billion to

J

Arc YOU
Interested In

the

dictate

close

a

success

of

j Investing In
National Growth Stocks

'

Series?
National Growth Stocks Series is
stock mutual invest¬

providing

a

for

money

reasons

the

over

cited

long

'

term

possible long-term growth of
capital wii'h special consideration
given to corporations act ively en¬
gaged in newer scientific develop¬
ments and technologies. Prospec¬
tus and other information
may be
obtained from your investment

a

supporting

combination of the Federal

action

M.I.T. Growth

common

Fund Breaks

Corporation

Established 1930

the

ago

18

portfolio

Broadway, New York 5,

i or*
New York

incw

14V DTOt

j

On

Previous Records

17

55%

Life Fund

Nov, 30,
increase

1956,

in

including

the

number

shareholders,

according
fund's 24th annual ;report.

DIVIDEND

Total net assets were

791,

Massachusetts Life Fund is

'

.

per

a dividend of 46 cents
share from net investment

for the quarter
December 31, 1956.
A

distribution

of 71

The

dividend

and the
.

tion

-

ber
trust

from

cents

incotfic

both

payable Decern-f..

24, 1956 to holders
certificates of record

Oil &

Gas

Corp.;

$103,641,-

shares

Co.;

Co.;

J.

Ray

Jet

assets

and

a

the

ago.

regular basis.

a

The total

total

the

num¬

net

level

20.962

the

of.,
at

20, 1956.

C/Ccb/ti/a/SCrfe
c€cmft a ay, Trustee

The
on

year ago.

net

asset

Nov.

30,
share, also
gether with

value

1956
a

was

record

share

per

$10.16

high.

per

To¬

a capital gain
distri¬
bution of 50 cents paid this
month,
the year-end asset value amounted

to

$10.66

year

Incorporated 1818

a

compared

with

$9.34

ago.

At year end the fund held
mon

a

stocks in 71

com¬

companies irr 25

.

assets

quarterly
exceeding that

end

of

any

Fund,

The

tion

Ce¬

than

g

increased

For the

industries

.,nrC

period, the
-the

consumption

gas

U.

Inc.

S.

petroleum

creased

leum

233%;

at

In

clear

energy

increased

1960

plants

U.

will

S.

"It

is

have

an

report
to
shareholders
showed that as of Nov. 30, 1956,

Inc.

securities

no

Energy Fund, "that we have been
living through an energy revolu¬
tion, and there is every indica¬
tion that expansion in

energy

inevitably continue for

use

years

EATON & HOWARD

EATON & HOWARD

BALANCED FUND

STOCK FUND

energy

installed,genthan

more

12

kilowatts.

tjajeetory."-

'

-

GET THE FACTS AND FTtEE PROSPECTUS

Securities Co., Inc.
Tel.




FEderal

J

BOSTON

With Marache,

''

1924

1

LOS
F.

SAN FRANCISCO

come a

ed thre

Mr.

your

Investment

stage

Dealer

or

the

above*

Co.,

3-1000

been

added

the

to

of

Marache, Dofflemyre &
634
South
Spring
Street,

members
^

has

of

-

the

Stock Exchange.

Los
.*•

Angeles

'

will in

itself

be-

satellite, after'ut has ejectspherical,man-made moon,*

Colton

pointed

adding

out,

"but unlike its instrumented pas-

it will have

ser.ger,

means-of

no

transmitting vital outer^space inobservers

to

earth."

,on

Wellington's District

••

Representatives Meet

-

The

annual

Fund
Dec.

was

meeting of district

*

1

-

of

''held

in

Wellington
Philadelphia

through Dec. 20. Accord-

17

^^7?
dent '

in

y^ce~7res7

charge

of

national

distribution, the meeting was one
of the most productive in the 28-

history of the, fund.

year

representatives from all

territories,, in (the

sales

country

to Wellington's Philadelphia

came

headquarters where they mef ip
formal sessions with more than
a

score

of Wellington officials and

for

Mr.

the

ANGELES, Calif.—Charles

Coates

staff

Prospectuses from

Dofflemyre

(Special to Thb Financial Chronicle)

^us8 Building

BOSTON
ESTABLISHED

i

'<

;•

.When it reaches orbital velocity,

all

operations

HOWARD

INCORPORATED

24 Federal Street

1033 THIRTIETH STREET, N. W-, WASHINGTON 7, 0. C.

&

V

,t

"the: * tangentihl
velocity necessary, for orbiting.v, t-

aims

EATON

'

f

-During -the« thirdi .stage,•-.Vires'
addedj a -solid propellant .imparts
.

.

discussed

Managed by

FUND, INC.

C

nuclear

an

erating caoacity of
million

MUTUAL

Dept

States

plants will have

DEVELOPMENT

Atomic Development

United

in-^

height of 300 miles, tilting slightly

District

Energy Fund report adds
by 1970 it is believed that

the

the

gether " he explained,,''they raise
1 ®
?,
f-,", 0 ^

end."

that

of

by * sensitive

representatives

1930.

exaggeration," says
E. ' Samuel,
President
of

Ralph

The

in

stages

nu¬

generating capacity
totaling about one million kilo¬
watts, a source that, of courS2,
unknown

two

controlled

this third

*

installed

was

first

to r'tha ^ satellite

energy

The

ATOMIC

'The

formation

by

mis-*

a giant

eastward toward-the, end of their

170%.

addition,

the

r,fl,e cartridge 72 teet long

-

increased 339%;
consumption inEuropean petro-

consumption

(1947-1955)

was

Wd.nearly. tour :tect-at its greatest-diameter.. , <.

•

U. S. electric power consumption increased 542%; U. S. natural

on

through

Mr.< Colton- descr ibed

-following

:

•

rocket
.

ertial guidance- equipment." "To^.

and 1955.

show
.

with

rocket, propelled with liquid fuels
its fed to • the combustion motor by
just" turbine-driven pumps,'" he said,

increased-183%.

gains:

in

ATOMIC SCIENCE

;

our

U^S. steel produc*162%; total-tJ. S.

same

three-stage

a

~

°}e,as toemfcriiapedylike

25-year period
illustrates the point.

1930

production

quarter.

Fund,

faster

problems associated

chosen for this job."

.,

U, S. automobile production increased 181%;

period.

the

fives,

'

.

activity.

mon

~

Between

increase of $16.0 million over the
S45.9 million a year
earlier—an
increase of 34% for the 12-month

held investments in

•'

■

_n

following

comparison

Co.;

reported

industrial

can

during
period to a

Industrial

.

other phase of Ameri- "are

The total net assets of $61.9 million
at Nov. 30,
1956, represented an

Financial

resources,

:

.

grown

must

invest

.,

has

McDerhiott
Inc.;

previous

.

any

increased

recent

natural

our

about

Services,

Industrial

from

last quarter of a century
production of energy in all

.

Financial

r

radio

the satellite design," Mr Colton
?aid' a!■? no less formidable than
the problem> of placing the satelllte ™ its orbit and, after careful
consideration of-- several alterna-

forms

Well

energy
'

tiny

"The

y

the

the

8,258,316 shares

year

of

'

••**

•

Meanwhile, we use more than
eight times as much power, from
coal, petroleum, natural gas and
electricity as we used in 1906. In

Casualty Co.; Union
Corp. of La.; Gulf Oil

Welex

'

York.

had

Assurance

Halliburton; Oil

menting

out¬

ber of shareholders
compares with
-

the close of business December

JfnbWiattce

Continental

fund's cumulative investment pro¬
gram to acquire additional shares
on

capital'gaifis'distfibu-

are

in

outstanding

share from realized capi£al gains is also being made,- '<
by the Fund., . .. ,
.
;

:>J;

Continental

solar

an

During the last 50 vears m the
U,
S.
A.
our
population
has
slightly more than doubled.

Monterey Oil Company; Gillette
Company; Outboard Marine Corp.;
American Airlines; Eastern Air¬
The number of shareholders in¬
lines, and Pan American World
creased to 32,570,
including 14,281 Airways.
or 44% of the
total, who used the
340

ending

per
,•

10,201,034

Co.;

standing, compared with $77.092,

paying

income

with.

a

of

all

p.

of Nov. 30, 1955:

as

The

-

which

the fund

'

report of

the fund states.

companies in

portfolio

and

nuclear

New

of

ergy

Carbon Corp.; Caterpillar Tractor

the

to

1956
its

and

exciting happenings of the 20th century, none is
more dramatic or
impressive than
the amazing development of en-

Burroughs Corporation;
Wells
Fargo ..Bank; Union
Carbide
&

Stock Fund surpassed all previous
records
for
growth in the year
ended

30,
in

system

transmission.

production

Incorporated,

Of

-

not held

were

Massachusetts Investors Growth

Massachusetts

Nov.

stocks

corpuscu¬

radiation, the mechanics of the

.

-

120

I

electromagnetic and

of

1956 annual

Cd.

year

contained

stocks of 58

surface during the Inter¬
national Geophysical Year in 1957,
is expected to provide answers to
such basic questions as the nature

Energv phenomena, the . transmitter will
open-end also relay- to observers stationed •investment company of the "noearth such additional.informaload" type specializing in
energy
tion as the size,-density and effects
industries, and managed and d:s- of meteorites and the range of
tribated by Ralph E. Samuel & temperatures.,'-."
»
-£ =.

,

industries.

lts °r,blt s°me 3d0 miles from the

earths

energy

to

Fund

by

National Securities &

♦

®a*J;nnn
rocketed aUthe
.f
of 25,000 feet per second to

of

the

in, 1957,

industries, the report said. A

mu

.

power
plants the corporation's Atomic & Elecproducing 12 million'v Ironies Division, stated. He added
kilowatts, has been highlighted in that in its probing of outer space

other governmental agencies and the
financial and business world will provide sufficient credit for all
legitimate financial requirements.
>>.
'
f^
* •
*.r

or:

Cor-

solar

capable

Reserve Board's credit policies

.

Chemical

Corporation.

power,

Despite the tight money situation, Keystone economists-think
that
and

for

&

winch sponsors and
National Securities
Senesi of mutual fimds with assets
/ $;*00>000'000*
1I?an"mu t

transmitter,'a
consumption, a somewhat amazi ig miracle, of electronics, is capable
prediction
of
inevitable
growth -of transmitting a variety of induring the next 15 years, rang ng formation - for
more
than* 4,000
from a tripling of use of electric miles,.Robert Colton, manager of

increasing

an

?f

Corporation, Interna-

Minerals

Future

the

are

-

j?,y National Securities & Research

Reduce

Record Growth

;

indicating

as

Air

lar

following: the
growth of research expenditures from $i billion to $5 billion in
the last decade, resulting in new. technologies and
products that
must be financed in part out of new
capital; the huge backlog of
demand for public constructicn; the continued
expansion of the
population and of the civilian labor force; and the steadily im¬
proving standard of living.
v
•

supervised

investment in securities selected

Research

;

.

Among, the specific

U

:

transmitter for

lssue
Activities," published

Sees For Future

study of domestic

investments

according to the report.
,

demand

dealer

will

trends

.

aJc£^ding.^QAtb? December

Energy Fund

predict that
high of $427

new

$0.4

up

Daily evaluation of the events abroad and

common

cal

1956, selectivity will again be the pattern for investors.

industrial

ment fund

a

13-ounce radio

to

poration,Monsanto Chemical Company,
Olin Mathieson Chemical
Corporation and Spencer Chemi-

of

spending, up $2 billion to $43 billion;
billion to $21.7 billion; corporate divi¬
dends, up $0.1 billion to $12.3 billion; and retail auto sales, up
500,000 units to 6.8 million.
V ,
As in

a

tional

defense

corporate profits,

.

i

i

presentation

companies:

& Chemical

supply of

is expanding.

report is

>
*
o
'•« T . ~
oPaCe JMCWS
I
*
'

Company, Allied Chemical & J Corporation,
Dye Corporation,. Food Machinery manages the

Keystone experts forecast the following increases over
figures for other key business indicators: National income,
$15 billion to $359 billion; personal spending, up $12 billion

to

]

the

chemical

The

$1,037,626,857. There

j

exceed

continued

-

JVfart* wj^ soon unravel some
of-juter- space

tion

1956

shareholders.

I. T.

the

of

to

management

'

' ^:

A small, 21-pound sphere with

the

quarter,

y-:V

-|V

-"I''ClCffF3p.il;V

(JlltCr
a

recent

PI-

|

^

additional shares of the following

billion, thus making substantial progress toward the $565 billion
objective envisioned by President Eisenhower for 1965.

tax

income

likely to continue

Gross National Product will rise $15

not

income

is

as our economy

feature

Assuming

whereby

During the

rri

«

1 O

chemi-

as

its confidence in the long- which long have defied man m his
growth
potential
in
the; ^uestfor interstellar informatmri,
chemical industry by purchasing

economy.

the

are

funds

long

industries

rrt

term

financial and economic indices showing their prewar
average, the
figures at various stages of the last decade, the present ratings,
and the percent of change from the prewar picture to current

1940.

150,885 shareholders.

were

In¬

to

for
as

Another

leaders

led

taxable

to

Sept. 30, M.

net assets

Act

legislation

to

the

of the

one

companies

distributed
On

savings

in

was

investment

subject

demand

major role in aid¬

a

effort

Federal

a

Company

In 1936 he
in

on

board.

Congress

ing

to

consulting
honorary chairman of the

*

basis

T.

I.

continue

^- "'"y

in

express

*

*

concentrated

of total assets; indusbusiness
equipment,

and

Fund's

A special review of the money market is featured in the
Keystone report. After explaining the causes of the present tight
money situation, the report states that sufficient credit will be
available for legitimate financial requirements even
though the

retirement

In

will

and

equipment, 7.7%.

rising

expenditures for industrial and public con¬
struction and for automobiles will produce modest
growth in the
nation's economy for the first six months of
1957, according to the
annual forecast by the economics department of
Keystone Cus¬

trustee

a

was

7

.

'

Steadily

repr<£. TilU'D

13.5%; oil and natural gas, 13.4%;
and electronics and electrical

Keystone Forecasts Expanding Boom

announced."

of M. I. T. in 1925 and

He

By ROBERT R. RICH

as

companies

major industry clas-

growth

trial

board

was

Griswold

Mr.
.

it

18

cals, 15.7%

advisory

Massachusetts

on

31,

such

retire

will

leading
in

sifications

Retire

to

104

sented

Industry Leader,
Plans

r

of

Griswold,

Thursday, December 27, 1956

..

phases of the fund's

and

the

its

coming

-Wilkins,- who

meetings.,

plans

and

year.

presided at
out. that

pointed

this year's sessions had. particular

significance

in

ton's

sales

record

000,000

view

through
vestment
firms
country.

'

of

of

Welling-

some

S100,-

independent" inthroughout
the

4* #

Volume 184

Number 5598

Continued

from

The Commercial and Financial Chronicle

...

ficulties.

3

page

Future Business
scene..

American financial

the

...

_

World

Since

War

.

,

business

II,

corporations have been financing
their needs for funds chiefly from
internal sources,

that is, deprecia¬

tion allowances and retained prof¬

institutions

savings they receive of some
flexibility." For example,
how

at

much

quire

of

a

re¬

less

feasible;.especially if, as now,
corporate profits show a

declining tendency due in part to

higher dividend payments.

V

In the first half of this

:

the
Department of Commerce reports,
industry's : investment, expendi-:
have

tures

year,

exceeded; the: flow

of

funds from depreciation -and re¬
profits by. a much wider
margin than in 1955.
- -- As
a
consequence, total bank

tained

loans

to

business

corporate

ex¬

the first half of this
by $3.6 billion—a six months'

panded
year

in

peak for the past five years; and
bond
financing was at a nearrecord level. Corporation
of cash and U.

curities

holdings

S. Government

reduced

were

se¬

almost

by

loan

associations

flow

into

home

financing

exclusively, except in
wartime when home building ac¬
tivity is halted. In contrast, mu¬
tual life insurance

ing

companies and

into

where

areas

classes

certain

Would-be

of

numbers.

er

anything ex¬
perienced in the preceding four
years. The liquidity ratio
of all

eral
want

business

l'ar

by

corporations,

which

is

the ratio of cash and government
securities held to current liabili¬

Reserve
the

total

to

and

turns

authorities

have

limit

reserves

It

to 48%

year

at the end of

A

return

suffice

time,

is

clear that American

in order to
expansion

ness,

huge
which
have

it
to

busi¬

the

out

carry

program

upon

is

will

now'embarked,
rely increasingly

upon

-borrowed money. Net cash inflow
is

diminishing.

have

reduced

been

where

Liquid

cash

and

resources

to;

-

point

a

government

se¬

holdings cannot
be
cut
back much more. Equity financ¬
ing tends to become more difficult
since the long rise of the stock
market has ended, at least for the
time being. Moreover, many in¬
vestors
are
realizing profits on

curity

fect,

to

to

supply

and

to

sustain

of

the

bonds

and

are

tax-exempt

securities

available

now

to

them.

So

long

resist

that

upon

ficiently to offset the
tive

current

further

future

more

Suf¬

attrac¬

offered

return

by

corrected

in¬

to

of

The
The

Credit

sharp

in

upturn

borowing

that

has; been

superimposed

has

business

taken

place

upon

a

heavy demand for mortgage
money to finance home building.
The mortgage debt on all proper¬
ties is increasing at the rate of
very

$15 billion per annum at the

some

present time. Corporate and mu¬
nicipal borrowers are increasing
their long-term debt at a rate of
over

$10 billion

The

trend

of

ing will inexorably .continue up¬
in the period immediately
ahead,
while
the, demand
for
„

trial

commercial

construction

works

will

Along

with

swell

and

indus¬

for

public

and

by

expan¬

by the Federal Reserve

total

demands.

world

tensions

give rise to the prospect that de¬
fense spending will again expand.
The

.

to

that, with steel and
key materials in short sup¬

good purpose wpuld be
by expanding bank, loans
satisfy all demands. This would
no

.

served

merely

with

provide

supply of savings available
satisfy the demand for mort¬

loans, and for business and
borrowing is relatively
stable. Institutions receiving these
gage

other

savings such as banks, insurance
companies, savings and loan asso¬
ciations and pension funds haye
some $20 billion of new funds to
invest annually. The volume \6f
such new savirigs increases relktively little from year to year.

powers or

limited

investment
objectives of certain of

Moreover,,

of

borrowers
bid

materials

with

for

scarce

and

labor

dollars,

more

building
in

the

financial

building desirable
prosperity.

sustain
The

..

Pharmaceutical

.

The financial

the

for

Economy

The prospect for the immediate
is

that

economic
There is

no

the

basic

trends

will

current

persist.

evidence that business

in business outlays for
equipment will follow

and

later.

or

business

The

recession

must

visioned in the financial

be

en¬

scene

prosperity or to prevent recession
turning
into
depression.
Against this as a background, let

fronri

consider

the financial out¬

look

for

now

the

pharmaceutical

in¬

In




Potential

expenditures

are.

yery

great.

addition,, the world tensions
induce

to

sure

even

higher

tuations
than

in

the

general

other

most

ternal

industry

economy

industries.

competitive

However,

could

be

one

of

ring

a

current

major

developments,
war or

international

These

(1)

A

any

bar¬

other similar

catastrophe.

are:

contraction

of business
equipment
spending,
because many industries will find
they are acquiring excess capac¬
ity, because profits fail to keep
pace with expanding investment,
*

plant

or

and

because

financing of expansion
becomes, too dificult or burden¬
some.

,

over-all

profits

conditions

in

costs

the

and

business
course

of

activity in
sales and

pharmaceutical

of

manu¬

facturers.
At

the

same

that

time, it is well to
it is easier to

ex¬

tive

prices
for
your
products
employment and personal
incomes are high, and when peo¬
when

not seeking to economize
personal spending. Hence,
should the current boom, sparked
ple

financing dif¬

half,

are

it

as

is

by

business

plant

and

equipment spending, be followed
after six months or a year by a
recession

caused

by

reduced

ex¬

penditures upon plant or for home
building, the pharmaceutical in¬
dustry cpuld be affected adversely.

'1

A more immediate and pressing

facing the pharmaceuti¬
industry, like many others^ is

problem
cal

by

a

severe

rising

these

in¬

malad¬

could

become

The

mere

even

prospect

development clouds the

a

economy

as

whole

a

ing

including

situated
t i

c e u

expanded

industries
1

c a

be

limited

extent

cession.

such

well-

pharma-

as

manufacturing which

would

a

count¬

are

steady gain in sales and

upon

profits,

for in¬

and

dividual industries that

being stampeded into embark¬

are

maladjust¬

corrected, the credit

are

ex¬

business managements

some

tion of the difficulties

affected

-

by

to

only

business

a

a
re¬

_

The

need

is

essential for

Projections

sales

of

agements to reconsider
dividual- company

pitfalls.

or

equipment expansion

profits

and

view

based upon the expansion plans of
one

man¬

of

that

industry

pace

have

ambitious

plans of their
of

programs

expan¬

of

inarkets

and

cost

that

in

its

ing
so

of

a

com¬

pharmaceutical

or

is

as¬

plant

longer

a

much

likely this

sharper

year.

panies had

1955,

increase

Yet these 25

to

94%

the

at

current

kept

of

end

1955,

of

se-

liabilities,

ratio

is

demands

the

currently

capital

all

being

market

the

made

simply

cannot be satisfied. Unless aggre¬

borrowing requirements

reduced,

the

could become
rates

credit
more

could

are

stringency
in¬

acute and

advance

stil^.

further. This could make it necesT
-for

a

growing

number

of

companies, particularly the small¬
concerns

credit is not

and

the

others

whose

strongest, to ac¬

over

business

effected

more

more

will

be

in line with the trend,

more

profits. Finally the cost of
new

capacity

ac¬

may

anticipated because
scarce

labor

and

equipment will become less acute
fonce

that

is

stark .fact

program

considerably

competition for

ma¬

terially lower today.

on

be lower than

down

probably

be

may

quisition of the

of

from 105% at the end of 1954. The

liquidity

to be

the outlays

expansion of investment

com¬

ratio, of cash and marketable

coming

case

advantageous terms. Furthermore,

is

combined liquidity

a

a

quite» possible. that

and

during

the

period^ Jn' .that event,rit

readily and

er

■

followed

be

expansion

as1 "to spread

to

sary

-

company's reconsider¬

a

lion

$747 million

and

there is

so,

financing

terest

bur¬

period "directly
'
i

contraction/in

made for

difficulties

member

a

year

to be¬

instances. Borrowings

culmination

by

existing

reason

financing

panies of the

gate

even

and

.

sociation increased from $680 mil¬

upon

full

a

of such

become

costly

the

its

increased

under

representative

The

be

capital spending is going to reach

and

financing

some

25

could

ahead.

being given too little weight

are

not keep

may

should

difficult,

more

questionable is the
expansion

conditions. There is

in

in

eco¬

If the current boom in Jbusiness

of

difficulties

of

lieve

the

giving adequate thought

without
the

programs
on

programs

adoption

to

there

densome

more

in¬

and

with expanding investment.

programs

over¬

production.
Even

plant

realization that financing

expansion

together could result in

saturation

clouds

industry profits

Moreover

Realiza¬

own.

number -of

a

the

their

nomic horizon and of the prospect

not be-realized

company may

in their

Financing Expansion

and

have

savings

appearance

intermediate outlook both for the

that, confronted with

which

curities

remember

'

(2) A sharp reduction in home
building, because of rising con¬
struction

where

In¬

pand sales and secure remunera¬

conditions

changed in time by

three

your

are

de¬

fense spending next year.

companies

the

and

Unless

severe.

of such

espe¬

industries

future, while recalling the

dustry.

shaping

public works

programs

more

of

capacity in the past decade and

of

tomorrow,together with measures
that may' be invoked to sustain

in

mount.

the

justments

of

prospect

of

or so. Despite the shortage
funds, mortgage debt continues

in the

sion

capital spending will be cut back
materially within the next few

to

spending
in

It may be

tion

individual
product developments often prove
far more important than changes

for

reconsideration

rates.

stringency

calls

profits do not keep pace with
panding investment.

credit squeeze.

severe

a

The
pharmaceutical
industry,
experience has demonstrated re¬
peatedly, is less affected by fluc¬

future

current

today is one
capital spending

scene

business

a

Industry

available.
Outlook

critical

a

This

stringency

terest

ex¬

where the other companies in the

us

The

of

upon ; ambitious ,,,expansion
anticipate ing
will become programs without full considera¬

lifting com¬
modity prices and wages without
adding to the volume of goods

,

this,

is

months

yearly.
busjpess borrow¬

ward

funds for

that

it

the

A cutback

supplies

Squeeze

hazards,

home

plant

to

volume

out.

fill

manifested

now

credit

the 1955

carried

to

may

again

sion of bank credit. The argument

ply,

for

to

credit

that has made its

are

showing only a
total, de¬

are

scene

advanced

the wherewithal to

bonds.

credit

on

expect

we

home

a

near

to

necessary

rein

to

cumstances

other

the

it

deem

higher
levels
of
home
building, especially in view of the
fact that a goodly share of savings
are
already institutionally com¬
mitted to housing.- In these cir¬

corporate profits makes it doubt¬
in

contraction

a

foster

sooner

that dividends will be

and

available

savings

ments and give rise to strains that

for

been

cially

inflationary

authorities is

increased

employment

the Federal Reserve

as

tight

a

The flattening out of the trend of
ful

This

build¬

economy.

boom and

that

applied to home

otherwise counteract

deter¬

a

American

in consequence, reflect

plant and equip¬
expansion
programs
that

have

ing

have

invest¬

exaggerated

The

it, and the determina¬

an

aggre¬

ment

of

corporation

Corporate,profits in the

-

record

test.

to finance

gap

these

the

no

products

by

penditures

shall

be

manufactured

spite

to

the

facilities.

real

the

not

for

favorable experience of those

savings,

of

doubts about the

are

demand

be

other

for

proved

of bank

to

agencies will refrain from apply¬
ing the special stimuli that would

exceeds

far

so

banking authorities to

exception, have

notable

put

for

reasonable

far

that

inflationary expansion

over

one

...

clear

so

to

demand

gloom

prevent

rise

level

that

of

tion of the

small

stocks to reinvest the proceeds in

yielding

<

..."

plant and equipment ex-"

future

may not
recession this

when cutbacks in plant and
equipment spending make a high

the

Stop, Look and Listen

con-" of the volume of

a

to

an

to

prophecies

unjustified.

or

the

steps

made

hand.

on

have been uttered in recent
years

order

banks

liquidity

where there

money
la

suffers, in other words, is
in

The

in

of

part

not"

gate this year

mination by the monetary author¬
ities that the shortage of savings

higher

easy

check

is

case

further

the stimuli

fear

ef¬

their

pansion programs, particularly

the

considerably
longer "than many

noteworthy exception consists of

and

In

resources

A Time

30%

fortunate

considerable

The

go

dominant

funds

the

have

industryis

a

impair

outlays for future expansion takes economy has proved remarkably
the form of research and
product,.. strong
and
robust.
But
every
development that can be charged
economy, however strong for the
off
against current taxable" in-"

past

The origin of the credit squeeze
from
which
the
economy
now

ment

exceeds

planned spending in
new
plants and equip¬

the outlook that calls for
traction of such programs.

the economy

however,

them.

crease

liquid

in

in

being

now

which

to

or

dangerous extent by using rip

a

larger than

taken

commercial

are

.

it did in 1953 and 1954.

as

been

credit, since they
are not in position, to
expand the
supply of loanable funds to any¬
thing like the extent needed to
satisfy
the
enormous
demands
that

this

39%

with

ration

to

to

drug
year
is

rising wages and costs, and fear¬
ing less favorable tax treatment

expansion of loans.

the

had

be

to

Contra-cyclical measures for
coping with a business recession,

Hence, the monetary

bank

check

The

anticipate at this time of booming
business and prevalent optimism.

keep

follow.

ing,

McGraw-Hill,

spending

for

that

gen¬

indicates that
could

authorities

of last

1956.

downward,

tionary
will

1956

•

.

recession

not

they

cept burdensome terms of financ¬

ment for all business.

the

their•„ deposits,
on
any
large scale because of the infla¬
consequences

a

;

and

programs

a

experience

their

expand

result in

Once the trend of

Fed¬

investments,

ties, declined from 54% at the end
June,

of

-

of funds.

to

do

to

1955,

bring

so

plant

37

v
economy, "would come. In a
period of high income long run, is exposed to periods of
prompt modification
taxation, this is a great advan¬ recession, and readjustment where
of Federal Reserve policy in the
tage. The record has amply dem- "
maladjustments or strains
direction' of easier money. This
onstrated that; well planned and
would mean a relaxation of the
develop. /
; •
*
•1.f ' ^
efficiently conducted research
credit squeeze, a decline in inter¬
The effort to effect a volume
programs
pay
off - very-hand¬
est rates -an^ greater
availability somely, and there is
nothing in of investment that is far in excess

great¬

the

and

could

precipitate

turning

authorities

banks

loans

that

all

or

thereby

exceeding

However,

in

rates.

Any of these developments, by
a recession in a large part

.

borrowers.
are

interest

economic recession.

further arid last

to the commercial banks in

$8 billion, a six months' reduction

of

causing

they

committed

borrowers

borrowed

over-all reduction in de¬

an

mand

The supply of savings is not ex¬
panding materially to satisfy cur¬
rent
heavy demands. Borrower
competition is keen for these sav¬
ings, which not only are inade¬
quate in total but are in large

rigidly

rise

consumers,

eral

needed at the time.-

proportion

and

about

flexibility in channel¬
savings and other sums

new

for

which

expansion

should be pushed at this time. Ac¬

could

and

of

collected
are

demand

to

extent

cording
capital

discourage borrowing
business, mortgage borrowers

by

mutual savings banks have a large
measure

the

equipment

increase

in

other fields, the vast sums of new

its. As plant, equipment and in¬ savings received, mortgage repay¬
collected 'and
additional
ventory; s p:e ri d i n g'; m o u n t s,' ments
however, this ^becomes less and amounts borrowed by savings and
retained

the

credit

no

given time may
savings to be invested

economy

lessen

scheduled

This

balanced

a

would

funds, namely, home building.
(3)
A. further
tightening.. of

deprive

their

matter

of

source

Prospect

thrift

these

This

supply of home mortgages and so
relieve the shortage of savings
by
cutting
back / the
chief
single

Immediate and Intermediate
dominate

(2829)

business generally cuts back

Jts capital expenditures.
This is

-

time for

a

btisiness

man-^

agement, to stop, look and listen.
-It"is

plant

a

time

and

-

particularly
outside

to

horizon.

so

It

with

mainly

where

is

so*

on

not

they

a

require

the economic
time

expansion

because

many

doing

new

financing, in the ligh| of

the uncertainties

ceed

reconsider

equipment " programs,

other

to

pro¬

programs

competitors

and

corporation^ are
>

vv. *««*»

-■»

-*

£3

The Commercial and Financial Chronicle

(2830)

The

Indications of Current

latest week

Business Activity

week

IRON

(percent of capacity)

Year

Ago

%

1

101.1

*2,525,000

§2,370,000

95.7

.2,489,000
*

oil

condensate

and

output—daily

DOLLAR

2,309,000

OF

NEW

-

•

;

Imports*

YORK—As

7,353,200

7,164,750

(18,000,000

7,865,000

7,965, COO.

Dec. 14
Dec. 14

27,006,000

27,237,000

Dec. 14

13,602,000

13,198,000

(bbls.)_
Dec. 14
Stocks at refineries, bulk terminals, in transit, in pipe lines—
«
Finished and unfinished gasoline (bbls.) at
—-Dec. 14

8,360,000

8,360,000

runs

output (bbls.)
Kerosene output (bbls.)
fuel

oil

(bbls.)__

average

Gasoline

Distillate

Dec. 14
Dec. 14

—

j—-——

(bbls.)

output

Residual fuel oil output

Kerosene

(bbls.) at

Residual fuel

oil

2,418,000

.

Private

29,909,000
126.040.000

43,145,000

*43,755,000

46,768,000

40,935,000

COAL OUTPUT
Bituminous

(U. S.

Pennsylvania
DEPARTMENT

Electric

662,463

20

$456,571,000

$528,078,000

$357,600,000

$458,354,000

-Dec. 20

STORE

310,067,000

260,761,000
197,593,000
162,495,000

372,307,000

249,851,000

146,504,000

155,771,000

107,749,000

115,082,000

122,812,000

90,228,000:

Dec. 20

31,422,000

32,959,000

17,521,000

(tons)!

10,660,000

*10,640,000

10,420,000

628,000

609,000

640,000

260

*227

151

Wholesale

kwh.)—L

000

AND

—

12,220,000

**12,225,000

Dec. 20

Total

steel

Scrap

(per

214

249

207

Electrolytic

5.C22c

5.622c

Export

&

J.

M.

$63.04

$63.04

$63.04

$59.09

——Dec. 18

$64.50

$65.17

$61.33

$52.17

(New York)

Q

(St.

at

{Zinc
Zinc

Louis)

(delivered)
(East St.

Straits

tin

MOODY'S BOND

35.700c

43.400c

34.250c

34.5G0C

45.400c

15.800c

Dec. 19
Dec. 19

16.000c

15.800c

15.800c

S.

at

at

14.000c

14.000c

14.000c

13.500c

13.500c

13.5C0c

25.000c

25.000c

25.000c

102.750c

104.250c

110.250c

109.500c

87.31

83.96

96.07

97.16

99.52

99.84

100.65

110.34

98.09

98.09

99.20

96.23

96.23

Dec. 21

108.88

97.31

92.05

97.00

97.16

98.09

96.38

96.38

98.25

$42,783,000

9,749

11,546

10,157

$573,000

$594,000

$82.42

•S82.21

89.64

*89.23

85.69

72.71

*72.83

...70.12

DAILY

.

OF

NEW

of

YORK—

omitted)

HOURS—WEEKLY
S.

DEPT.

OF

November:

1

goods

:

goods

•:

>

Dec. 21

3.48

3.52

3.32

4.01

4.00

3.93

40.6

3.76

3.71

3.15

Dec. 21

3.87

3.87

3.80

Dec. 21

3.99

3.99

3.92

Baa

Dee. 21,

4.39

4.38

4.27

3.62

4.10

4.06

4.08

3.94

Dec. 21

40.3

$2.03

$2.02

$1.93

2.16

2.15

2-05

*1.83

1.74

147

*146

143

149

150

145

$223,200,000
57,700,000

$171,800,000

$182,000,000

45,900,000

51,500,000

9,900,000

8,800,000

8,900,000

45,500,000
95,800,000

38,800,000

39,500,000

73,100,000

73,800,000

,

;
,

OF

THE

FEDERAL

;

benefits

RESERVE
.of

Nov.:

:

-

PAYMENTS

TO

—

endowments

:a

Disability payments
Annuity payments
Surrender

3.43

3.87

3.93

;

INSURANCE-BENEFIT

Matured

3.34

—

41.2
41 8

*39.3

1.85

Earnings—

manufacturing

Death

3.23

A

Dec. 21

*40.7
*41.5

39.3

goods

POLICYHOLDERS—INSTITUTE OF LIFE
INSURANCE—Month of October:
h

3.34

3.78

Aa

Group

$79.52

41.5

goods

Unadjusted

2.38

Dee. 21
Dec. 21

corporate

;

—

LIFE

AVERAGES:

Group

IN THE

108.34

Dec. 21

YIELD

Utilities

$50,004,000

$568,000

(NEW)

ESTIMATE—U.

ERNORS

107.27

Dec. 21

Group

Government Bonds

Public

1,239,000

$39,886,000

SYSTEM—1947-49=100—Month
Seasonally adjusted

105.34

94.56

Aaa

Railroad

3,629,000

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

102.13

95.16

90.34

Dec. 21

Industrials Group

U. S.

BANK

(000's

goods
Nondurable goods

.

Average

9,744.000

1,854,000

:

manufacturing

All

106.92

90.48
94.86

Dec. 21

—

—

Group

BOND

5,068,000

12,626,000

11,145.000

OUTSTANDING—FED¬

Earnings—
manufacturing

Hourly

106.92

_

I

MOODY'S

$14,106,000

5,517,000
12,368.009

*

& BRADSTREET,
November..

of

30

Nondurable

S4.95

S5.92

Dec. 21

Aa

Utilities

$17,345,000

3,743,000

11,476,000
11,099,000

—.

Durable
88.11

Dec. 21
-

Public

70

945

liabilities

PAPER

Nov.

Durable

13.000c

Dec. 21

Aaa

Railroad

82

$11,714,000

—1_

RESERVE

ol

All

13.500c

PRICES DAILY AVERAGES:

corporate

Baa

133

Hours—

Not Avail.

Dec. 19

•-

——

at

Government Bonds

A

182

196

STATES—DUX

Nondurable

15.300c

—Dec. 21

U.

Average

462

1,153

'

INCORPORATIONS

Durable

15.500c

Dec. 19

at———

York)

16.000c

16.000c

Pec-

Louis)

(New

35.700c

33.625c

?'

*?ec- J®

Aluminum (primary pig. 99% )

84

584

86

—.

liabilities

AVERAGE

All

35.700c

Dec. 19

--5ec'

at

Lead

193
112

*171

.

Weekly

at

Lead

'

FACTORY EARNINGS AND

QUOTATIONS):

at

refinery

refinery

166

482

5.174c

copper—

Domestic

„

—

liabilities

ERAL

181

5.622c

Dec. 18

—

ton)

gross

(E.

,

.

l.__

liabilities

t

LABOR—Month

METAL PRICES

-•,

number

service

UNITED

As

ton)-.—

gross

BRADSTREET,

liabilities

COMMERCIAL

Dec. 18

(per lb.)

85,508,000

$641,526,000

11,614,000

11,439,000

&

DUN

132.602,000

$842,818,000

i

999

liabilities

BUSINESS

—Dec. 22

INDUSTRIAL)

20,024,000

94

service

Commercial

IRON AGE COMPOSITE PRICES:

Pig iron (per

%'

■_

INC.—Month

INC.

BRADSTREET,

142,870,000

■

•—*

number

Construction

255

—Dec. 15

8,486,000

63.835,000

•

between

614,000

RESERVE

100

=

204,971,000

19,175,000

number

Manufacturers'

10,686,000

Dec. 15

INDEX—FEDERAL

SALES

(COMMERCIAL

Finished steel

9,700,000

number

Retail

35,098,000

Dec. 15

number

number

Total

INSTITUTE:

(in

shipped

———--1——

FAILURES— DUN

Commercial

lignite (tons)

anthracite

output

FAILURES

and

—

INC.—Month of. November:

Manufacturing

Construction

651,865

Dec. 20

' 119,436.000

$924,443,000

Retail

664,223

—Dec

stored

$258,502,000

13,833,000..

183,954,000

BUREAU OF MINES):

and

ELECTRIC

goods

709,132

763,876

737,757

*—Dec. 20

SYSTEM—1047-49 AVERAGE
EIMSON

716.652

663,706

—,

coal

BUSINESS

ENGINEERING

.

.

281,130.000

160,406,000

<

35,978,000
160,400,000

municipal

Federal

172,739,000

33,111,000
145,550,000

construction

and

on

foreign. countries

*r

—

$276,642,000

15,381,000

-

8,623,000

,

32,418,000

construction

State

175,427,000

177,037,000

freight loaded (number of cars)—
Dec. 15
Revenue freight received from connections (no. of cars)—Dec. 15
CONSTRUCTION

Based

2,428,000

,

Wholesale

NEWS-RECORD:
S. construction:

$277,461,000

——

shipments

—

12,077,000

7,891,000

Dec. 14

Total U.

30:

Total

Revenue

Public

2,619,000
12,163,000
...

139,610,000

(bbls.) at

ENGINEERING

2,885,000

„

27,069,000

--Dec. 14

ASSOCIATION OF AMERICAN RAILROADS:

CIVIL

26.483,000

——Dec. 14

—„——

Distillate-fuel oil (bbls. >at_

Ago

BANK

—-1^,
—3
Domestic warehouse
credits^.-—i.„
Dollar exchange —1-14--r~

7,684,000

Crude

Nov.

Year

Month

OUT¬

RESERVE

L—,

Domestic

6,945,800

each)
to stills—daily

oi

Previous

295,077,000
7,355,150

gallons

42

ACCEPTANCES

FEDERAL

—

of

(bbls.

average

of that date:

are as

Month

BANKERS'

'

Crude

INSTITUTE:

PETROLEUM

AMERICAN

of quotations,

cases

either for the

are

Latest

STANDING

Dec. 30

in

or,

i

*102.6

£96.3

production and other figures for tha

cover

Dates shown in first column

that date,

on

Month

Week

Dec. 30

Equivalent to—
Steel ingots and castings (net tons)

month ended

or

Previous

Week

INSTITUTE:

STEEL

AND

operations

Indicated steel

month available.

or

Ago

Latest

AMERICAN

following statistical tabulations

Thursday, December 27, 1956

...

Policy

3.32

_

.

values

.-

dividends

84,500,000

86,600,000

69,600,000

$516,600,000

$425,000,000

$425,300,000

„

'

Industrials
MOODY'S

Group

Dec. 21

j.

NATIONAL PAPERBOARB
Orders received
Production

3.86

3.26

440.0

431.7

399.9

249,212

327,486

231,330

275,418

278,966

296,461

95

95

94

102

Dec. 15

416,158

451,288

428,989

568,726

Dec. 21

at end

of

110.13

109.62

109.60

107.14

period

1949

DRUG

REPORTER

PRICE

DEALERS

EXCHANGE
Odd-lot

—

sales

Number

AND

SPECIALISTS

SECURITIES

dealers

by

N.

Y.

1

1,303,670

1,119,047

1,333,750

1,165,095

Dec.

1

$68,215,531

$58,844,058

$70,848,894

Number of

orders—Customers'

total

$62,405,915

other

Dec.

sales

974,831

I

13,149

11,372

5,575

1

961,682

814,355

899,422

1,030,029

Dollar value
Round-lot

1

$46,675,229

$42,504,110

$45,119,535

$50,486,408

Dec.

L

sales by

Number

of

1

236,820

181,420

216,350

sales

Number
TOTAL

of

shares

ROUND-LOT

EXCHANGE
FOR
Total

I

L

Dec.

SALES

1

23b\820

181,420

216,350

319,360

1

557,640

466,070

640,970

444,480

ON

THE

N.

Y.

1
1

11,230,140

Dec.

1

11,896,650

-

TRANSACTIONS

FOR

ACCOUNT

OF

Short sales

Other

1

13,278,650

...

;

1,276,540

-

1,601,160

272,520

il)556;890

297,610

969,040

1,414,970

£118,369

£115,457

£108.165

£116.955

£113.712

£107.781

13.500c

ton)_

13.500c

U.

14.000C

13.500c

£100.767

£95.726

£92.432

£96.761

£93.595

£91.401

91.375c

(per

York

110.630c

refined

(per

1

105.764c

97.804c

$35,000

*% $35,000

$254,769

$279,390

36.470c

Laredo—:

36.470c

33.000c

36.470c

33.00CC

-

33.000c
'

33.500c-

-

—-;-33.500c

33.500c

$104,000

$101,570

$104,000

pound)

S1.7C000

$1.70000

$1.70000

$1,70000

$1.70000

SI.70000

$1.70000

$2.60000

(per

$l.'iOOOC

pound)

$2.60000

pound)-

i

i

—

grade

97%

79.295d

$2.80145

$35,000

pounds)

bulx

91.461c

79.935d
$2.78457

$255,000

price)

boxed—!

pound),

91.176c

81.301d

$2.78246

.

S.

13.000c

14.000c

.

(per flask of 76

purchases

1,712,580

$1.70000

323,200

243,990

353,150

20,600

45,500

$2.60000

weighted
27.100c

!

grade primary pig— _*___

ingot

(per

24.400c

,

25.000c

Not Avail.-

35.250c

32.500c

'"*■^(64,500c

64.500c

$2.25

—

25.000c

35.250c64.500c

pound)

399,360

366,430

337,580

227,970

444,860

400,350

1

516,236

362,960

1

458,885

733,077

99,320

69,100
413,258

87,480

.

119,960

.u

(pey, pound)

$2.25

CAPITAL

MIDLAND

ISSUES

$2.25

-

GREA^

IN

BRITAIN

BANK

LTD.—Month of

Nov.:__

MARKET

TRANSACTIONS

IN

'

-

"

■

£28,472,000

£51,033,000

£53,630,000

33,920

207,370

1
1

1
l

-Dec.

l

-Dec.

,,

ingot

—

Bismuth

432,100

58,600

-Dec.
-

grade

pound).

1,579,530

1,241,560

278,580

-Dec.
-

99%(per

•♦Nickel

232,210

l

Dec.

WHOLESALE PRICES, NEW SERIES —U.
S. DEPT.
LABOR
(1947-49 = 100):

15.200c

'—

Straits

ounce,

Magnesium

1,347,320

-

l

Dec.

Total sales

15.500c

Louis—:

ounce)

(per

Cobalt,

1,C36,C70

1

floor—

sales

sales

long

St.

(check).-.!

SCadmium

12,757,820

Dec.

sales

(per

{Cadmium

NEW

Total round-lot transactions for account of members—

Other

10,505,330
11,036,650

Dec.

the

purchases

Short

520,835

Dec.
-

Total sales
Total

9,522,850
10,040,030

1,236,870

1

Dec.

initiated off

York

tCadmium,

531,320

.Dec.

-

Short sales

Other

l
l

Dec.

—

(per

Aluminum, 93%

1,640,480
320,020

the floor-

sales

transactions

Total

1

Dec.

Total sales

New

average}.,

Dec.
on

517,230

16.000c
15.800c

i

Exchange

Aluminum,

Dec.

sales

Total sales

transactions initiated
Total purchases

16.000c
15.800c
!__

MEM¬

Short sales

'k

666,510

Not Avail.

pound)

ton)

Antimony (per pound), boxed Laredo
Platinum, refined (per ounce)
Dec.

£281.326

Sterling ExchangeNew York
(per "ounce)

Antimony

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total purchases
_Dec.

Other

Tin,

43.860c

Not Avail..

pound)__
(per

long

London

London

42.964c
-

£281.946

.

(per

(per

IIAntimony,-: New

Dec.

Other

and

(per
Quicksilver

STOCK

—

-

'

pound)—East

Gold

sales—

Total sales

Other

months,

(per

Silver,

RO^ND-LOT STOCK TRANSACTIONS
MEMBERS (SHARES):
L ^

sales

ROUND-LOT

Silver

OF

Short sales
Other

1,037,134

Dec.

i

:

London

Sterling

dealers—!}

:

STOCK

AND

ACCOUNT

round-lot

j

.

Round-lot purchases by

Zinc

38.623C

35.431c

*•

£281,727

3-months
,

Silver,

sales

Short sales
Other

904,997

dealers—

shares—Total

34.466c

?£Zinc, Prime Western, delivered (per pound)
t tZinc, London, prompt (per long ton)—
{{Zinc, London, three months (per long ton)

319,360

:

825,727

,

£280.455

-

t1 Three

7,105

Dec.

:

sales

Customers'

1

Dec.

short

Dec.

-Dec.

'Customers'

sales

,

prompt

{{Prompt,

Dec.

;

-

.

35.696c

.

purchases by dealers (customers' sales)—

-

pound)—

Common, East St. Louis

-

QUOTATIONS) —

refinery
refinery

Common, New York

Dollar value
Odd-lot

(per

Lead—

STOCK

purchases)—t

November:

Export

COMMISSION:

EXCHANGE

(customers'

shares

of

ON

J.

of

{{London,
i{London,

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

M.

Domestic

INDEX—

AVERAGE —100

(E.

&

Copper
-

OIL, PAINT AND

PRICES

Average for month

229,795

281,309

Dec. 15

(tons)

Total

METAL

Dec. 15

..Dec. 15

-

activity

Unfilled orders

3.98

441.0

ASSOCIATION:

(tons)-

(tons)

Percentage of

3.98

Dec. 21

:r

COMMODITY INDEX

1

613,648

570,979

TREASURY
RECT

712,968

482,358

658,459

Net

2,413,195

2,801,247

477,940
2,129,498
2,607,438

362,220
1,589,66*8
1,951,888

430,590

386,090

2,385,309

U.

GUARANTEED

A.—Month

of

DI¬

*

SECURITIES

November:

.

.

'

'

•>

f

.

sales

1

purchases

$83,"931,350

!

$56,176,500

.]

$7,893,500

755,848

1,883,490

S.

Net

635,888

2,479.916

AND

OF

UNITED

2,349,638
~

2,815,899

2,735,728

OF

-

EXPORTS

STATES

BUREAU

(000's

'OF

-

AND^IMPORTS

CENSUS

Month

—

of

Oct.

omitted):

*

Exports

:

1,644,000

1,518,000

1,396,100

1,120,000

Imports

992,700

1,010,700

—

Commodity Group—

ZINC

All commodities
Farm products

Processed foods

-

116.1
87.7

Dec. 18

Meats
All commodities other

or

*

Dec. 18
Dec. 18

•_

__

3
than

—I

124.7

-Revised
Jail

Monthly
exceeds

figure, {Includes 979,000 barrels of foreign crude runs.
§Based on
'%r 1956. as against Jan. 1, 1955 basis of 125,828.319 tons.
tNumber of
Investment
one-half

Plan.

cent

a

{Prime

pound.




Western

**Estimated

Zinc

sold

figure.

on

delivered

basis

,,111.2

87.8

84.5

*103.0

78.4

Dec. 18

115.7

*88.6

102.8

_Dec. 18

farm~and~foods_Z—

116.2
'

103.3

*79.5
»

-

124.0

97.7

80.6

124.6

70.4
■

-'h-'119.5

of

OXIDE

(BUREAU
October:
-

Production

Shipments
Stocks 'at

orders

at, centers

not

where

capacity of 128,363,000 tons

as

reported

since

introduction

of

freight

from

East

St.

Louis

(short
end

of

^Revised figure.

producers'
new annual

(short

{Domestic

and

five

J freight from East

>

"

-

,

17,144
16.011

16.550

V.

19,203

18,070-

tons)
month

{Eased

(short
on

tons)

'

15,067

1

8,586

16,606

!!

19,946

the producers' quotation.
{Based on the average of the
§ Average of Quotation on soeciali shares to plater.

quotations.

or

more

but

less

than

carload

lot

boxed.

§§Delivered

wM-;

St. Louis exceeds 0.5c.
**F.o.b» Fort Colburne, U. S. duty Included.
daily mean and bid and ask quotation at morning session of London
Exchange.
{tDeliveieu where ireignt from East St. Louis exceeds 0.5c.

{{Average
Metal

MINES)—Month

tons)

platers'
tons

OF

of

.1

Number 5598... The Commercial and Financial Chronicle

Volume 184

(2831)

spend

Continued from page

2

and

other

manufacture

the

for

.

Purex

than

size

our

in

$1.50:

this

the time

25,

d

D.

Control

Procedures

for

is

also

ing—R. G. Smith, Jr., and D. B.
Gragg, OTS, U. S. Department
of

Commerce,
D. C., 500.

the

on

space

Adds J. S. Disston, III

Monitoring Psychological Test¬

keep in the race
preferment. We are

Washington

PHILADELPHIA, Pa.
Broad

Street,

York

New

_

other

Co.,

Stock

South

of

the

Exchange and

exchanges,

an¬

that Jacob S. Disston, 3rd.,
associated with "their

has become

Philadelphia office

representative,

0

Mont¬

—

123

members

^leading

nounce

-

e

Scott &

gomery,

25,

vertise throu^ the popular naThe
company's
capitalization
Il-acre tract on which the Bristol tional magazine® and TV and radio consists of $6"million of long-term Tuberculosis In New York City,
plant is located for future expan- programs on-xtetional networks— debt and approximately 790,335
1955-—New York Tuberculosis
sion.
In
exchange for
136,000 the heavy artillery of modern sales shares of common stock (excludand Health Association, Inc., 386
shares (with a market value of promotion an^usually considered ing 20,801 shares reserved under a
Fourth Avenue, New York 16,
about $2,720,000" at the time of vital for merel&ndising success. *
management stock option plan).
" H. Y.
the transaction) Purex acquired:
The use of tfcjfese national media, About 34% of the common shares United
Nations and Dependent
(1)
Manhattan's assets - with
a of course,
requires huge where-" are owned by Adrien C. Pelletier,
Peoples—• Emil J. Sady — The
book
value
of
$1,146,000
(and withal—and thqs too has been pro- Chairman of the Board and PresiBrookings Institution, Washingworth considerably more in terms vided
througj the company's dent of the company, and his
ton 6, D. C. (paper), $1.50.
of replacement value); (2) a tax
acquisitions: Jfr 1951 Purek's sales" family; 18% of the shares are
.....
.
¥w<i,ic4l.w loss carry-forward of $1 million; 0f under
$201 million permitted held by O. M. Burke and family,
ckii
l+dL£
(3) good will, etc., of "Sweetheart advertising an«promotion outlays who acquired the stock in exSoap" and other products, based of only $1.7 mglion; These outlays change for their holdings in the
East 48th Street, New York 17,
on some $35 million in advertising
were
just abojut doubled in the Manhattan Soap Company,
N. Y. (paper).
during the last 10 years.
We fiscal year e^ed May 31, 1956,
Reported earnings
per
share
would guess that this will prove when
sales ^mounted
to $34.9 have risen from 93c five years Regulations Relating to Foreign
Funds
Control
in
to be a profitable transaction for
the
United
million, and $uth sales now run- ago to $1.59 for the fiscal year
There

ucts.

Montgomery, Seolt

1

Quality

can

consumer

Washington

merce,

any

it is the only way

.

.

laboratory

on

research

broad|market, Purex for unrelenting in our search for betfindsfit practical to ad- ter quality at lower cost."

and acquired

distribution of Purex's other prod-

that
for

money

company

field, but

The Security I Like Best
space

more

consumer

Montgomery,
Disston

was

Disston

&

as a

prior

Scott

registered
joining

to

Co.,, Mr.

&

associated w*h Henry
Co.

Sons

? r!aLl

^^ti^^aSi^cW^Y

„

pl£®x-

,

.

ning at a $50 trillion annual level, ended June 30, 1956.

.

Throqgh improvements

in man-

ufapturing techniques at the Manrescheduling of
production runs,
together with
reduced warehousing and freight
costs,
economies
running
hattan plant and

promotional

expenditures on the increase

order of $6.5 million are likely to
be made.
Hence the company's

should

sales

volume

show

continue

strong growth.

even

of

71%

for

Giving effect
to to the various basic improvements
discussed above, earnings of about

advertising $2.40 a share are expected in the
being used to good effect fiscal year ended June 30, 1957
According to early estimates an- .g evident from the
type of TV (after Manhattan Soap's tax loss
nual savings of some $1.5 million,
programs with which it has been carry-over of $1 million) and by
or almost 90c a share after taxes,
connected. For over a year Purex fiscal 1957-58 net earnings should
were
considered ultimately poshas co-Sponsored "The Big Sur- approximate $3 a share.
,

seven

.

figures

anticipated,

are

revisedUpwards.

since teen

The aforementioned

obviously

praise
A

of

ga^ns'in

serious

strategic

major

of

proper-

.

..

..

.

to

...

.

the

promotion,

more

..

,

lifeblood

,

of
of

cleaning agent field, which is
possible
From
a
chemical
viewpoint
there is, as we know, no spec¬
w

rious

etc.,

difference

brands

of

available

the va¬
detergents,

among

soap,

to

the

consumer,

Advertising, however, creates consumer
preference for one brand
of soap, as against another (' Love
That Soap!") and, put mildly, advertising therefore plays a key
role in
T

the industry.
.

,

.

.

acqui-

sitions the company now markets

throughout the United
well as various foreign
countries.
With this newlyproducts

States,

PuEreyx lines.

larizing

as

•paabs aq pjnorj aubui sb doimi
•••qjbap ssajpaau b si tpbapiaa
pjiqi Xxoao jeqj

addrtii/atL0£companyS^ecenUy

instituted a policy of distributing
c°™Paf/
stock dividends with a declaration
co-sponsored the "Ina Ray Hutpayment,

ton

Show,
You

Arthur

Godfrev

enjoyed
ences

Purex's

Old

—

and

television

benign

promotion

is

~7ubrev

w

has

Calif.

—

Oliver

annointed

been

W* Aubrey has been appointed
Manager of the Santa Cruz office

si'sn jpj

Siopop jno 6pbj oiSbai aqjL

of

radio.

or

in sales
illustrated by

Virtually
virtually

'ym uuicri Cleanser.

lent

a growth
prospects

representative

registered
San

rex's
Dutch

Cleanser's

arrested

versed

decline

was

bination

of

was admittedly responsible
for this achievement, the intensi-

similar experience is

a

behind

of

February 15,
the

at

ciation of Manufacturers, 2
48th Street,

East

New York 17, N. Y.

to Stockholders of
business January 24.

1957

close

of

soap

recent

record
1957.

years

somewhat

in

0O0

—

—

Carolina-

Division, De-

_

meeting

a

per share on the Ordinary
Capital Stock was declared in re¬
spect of the year 1956, payable in

funds

.February 28;
1957, to shareholders' of record at

_

Space

and

on

Commerce

cancer

more

going to their

doctors in time...To learn

head off cancer, call

Society

write to "Cancer* in

of your

care

local Post Office.

Society

of

chemists




and

full

40

devote

to

time

technicians

the improve¬

of

ment

existing products an.i
manufacturing processes,' and the
development of new ones. Then
there is
itself

t
j(®

..

sizable staff concerning
with market research.
As
a

C.

Pelletier, Chairman of

the Board and President of Purex,
has- phrasedit:. "We probably

,

„

Montreal, December 10, 1956.

Condensed

—

CONSOLIDATED

COMPANY

Forty

Department,
"Banking" Magazine, 12 East
36th Street, New York 16; N. Y.
of Laboratory TemperElectronic Relays,

ature Control,

Operated Tempera-

Control

—

York

20, N. Y.

the

C.

M.

this

has
lar

per

stock of

able

share

on

'

••

•

January 31,1957, to stock¬

Company's office in Los

Angeles, January 31.

Cents

February 15, 1957 to stock¬

holders

of

business

record

at

January

R. E. palmer,

p. c. hale,

the capi¬

the Company, pay¬
the

15,

close

1957."

Secretary

December 20, 1956

Proctor,

OTS, U. S. Department of Com-

i

axe pay¬

regu¬

a

One-Half

and

(4712*')

of

declared

•

dividends

quarterly dividend of Forty-

Seven

tal

boato of directors

day

share,.

holders of record January 5.
Checks will be mailed from

Dividend No. 36

The

per

.

able

Rockefeller Plaza

30

Dividend No. 35

28V] cents

The above

American

for $6—Circulation

ture

GAS

NATURAL

Association,

Thermistor

4.48% CONVERTIBLE SERIES

PREFERENCE STOCK,

2

12 East
36th Street, New York 16, N. Y.
—available to
member banks

Principles

t

4.54% CONVERTIBLE SERIES

,,

Theses

share;

PREFERENCE STOCK,

28 cents per share;

111, t

New

Present Day Banking 1957
Bankers

,

Dividend No. 39
) ri

New York 7,

.

i

-

60 cents per

(paper), 250.

_

-

State

^
of Manufacturers,

Street,

48th

^udrt^rly dividends:

t

January 4, 1957.

Secretary.

National

Association

Board. qF Directors lias

^authocizsed tberpayment of the

FREDERICK BRAMLEY,

(paper).

N. Y.

Adding no little glamour to
Purex's longer term possibilities
is the company's farsighted
re¬
search program. A qualified staff

York

New

dividends '*;>
The

Dividend No. 188

Department of Commerce, 112
State
Street,
Albany,
N. Y.

East

more.

Adrien

American Cancer

"Sweetheart"
should
Purex stockholders even

—

_

California
Company

By order of the Board.

Economy—

weakness.)
Under the personalized Service—Describing
guidance and stepped-up
services available from Dept. of

Cleanser,"

Edison

COMMON STOCK

Walter Isard—John Wiley &
-Sons, Inc., 44 Fourth Avenue,
New York 16, N. Y., $8.75.

„

Southern

of the Board of
Directors
held
today a regular
dividend of seventy-five cents and
an extra dividend of twenty-five
At

3:30 p.m. on

Location

Notice

Dividend

Canadian

had
the

PACIFIC

CANADIAN

(paper).

Purex

siderably bigger than "Old Dutch

Many thousands of Ameri¬

Treasurer

December 20, 1956.

RAILWAY COMPANY

partment of Conservation & De¬
velopment, Raleigh, N. C.

former outstanding position in the
toilet soap field. And, being con¬

reward

H. R. Fardwell,

New York,

cents

North

About

state Advertising

promotion being offered by Purex,
"Sweetheart"
should regain
its

LET'S LOOK AT THE BRIGHTER SIDE

4, 1957.

quarterly dividend

.

skilled

ary

JOHN R. HENRY, Secretary

the Issue of Income Tax
Discrimination—National Asso-

s

relatively cheaply because

this

payable January
stockholders of record
the close of business on Janu
to

Transfer books will remain open. Checks will
be mailed.

Facing

antici- Fact

Manhattan

toilet

declared,

25,1957,

Checks will be mailed.

stock
a

per

the Common Stock has

on

been

Bookshelf

distinguished old trade
in

quarterly dividend of $.50

share

On December 20, 1956

Man's

respect to Manhattan
in

Common Dividend No. 201
A

fifty cents per share was declared on
the Common Stock of this Company, payable

(paper).

which

COMPANY

of

Report-Credit Research Foundaiioil, 229 Fourth Avenue,
New York 3, N. Y. (paper), 750.

a

aging,

chased

the American Cancer

December 21, 1956

ELEVATOR

AMERICAN

sunflKtmttutiiumiuituttuiatiuuniuuiuHuuttufmniHiutMtttftaittuiBttNfluiiBba

on

SUNDBERG,

Treasurer

re¬

of

competitive battle. (This company
too appears
to have been pur-

or

E. W.

OTIS

NOTICES

DIVIDEND

Credit Executives Outlook for 1957

Here again

business

well) over 4%.

startling

tune

of

relatively

a

Business

changes in formulation and pack-

fallen

to

close

not

actually

but

in

While a comfactors,
including

the

to

acquired

how

the

B. Burnett Carson

common

121% gain in sales.

name

are

at

January 4, 1957.

at

first year under Pu¬
ownership, however, Old

"Sweetheart"

people

record

,v-

CAN COMPANY

During the

Soap.

More and

Company held on
a regular
quarterly dividend of 40 cents per
share was declared payable on the
Common Stock of the Company on
January 15, 1957, to stockholders of

the

to

-t*H™

Francisco office.

a well-protected dividend,
Pu/ex represents one of the most
interesting equities available to
SeT"Wstor"today

dentally, probably explains the
'
very reasonable price Purex had
to pay for Old Dutch Cleanser,)

A

every year.

Gamewell

Friday, December 21, 1956,

of Reynolds & Co., 1316. Pacific

bn

indispensable for generations of
American housewives, "Old Dutch
Cleanser
had begun to lose
grcuni to less venerable rivals
during the last,few years prior
\°
Purchase by Purex in May,
J95*- (This circumstance, inci-

pated with

cured of

The

stock with excel-

yield of

generous

touch

well

As

and

which

r°le-

are

meeting of the Board of Directors

a

B. Burnett Carson of Carmichael

fied, telling advertising by Purex
undoubtedly played Lie principal

cans

of

& Carson passed away December
faithful audi- stable industry and providing a 17th.
all

Cleanser."

Dutch

Stars,

Tonight,"

Go,'

vast

on

of

"Festival

"Down
.vuu

merely

-ubo

Last summer

„

...

,

Largely by virtue of its

SANTA CRUZ,

quiz
Dividends have been gradually Avenue.
Program whl^h has an audience increased over the past halfWalton T. Hildebrand, his predniit^ndinfflv
in nornr
deca<*e nfrom 60c to
current ecessor, will be transferred as a

or

now

tacular

Reynolds Manager

the company's

At

vacatl0n

over, has yet to be mentioned—
the vastly expanded
advertising

and

and

partment, Basle, Switzerland
(paper).

dollar is

whilf. "Tha Bi« Surprise" was on
the

earnings

consequence,

14)—Bank

Settlements,
Economic
De¬

aVC price" the I1.0?'0?0 television

benefits

the company's acquisition program
are

That

(Supplement

International

Monetary

pated in the future.

NOTICES

. #

States

While this

is

impressive,
progress is antici-

greater

,

DIVIDEND

«

December 21,

L

1956

Treasurer

40

The Commercial and Financial Chronicle

(2832)

.

for legislative action in 1957

there well

Behind-the-Scene InterproUtion*

Capital

developments, the
Congress which is

unexpected
session

of

be

week from

great deal of noise
minimum

7 There

at

cannot

Democrats

capped
the

1

is the possibil¬
The initiative for
obviously will not come

One

ity

;

war

from

these

of

of

war.

Eisenhower

the

it is

and

policy which

a

is

this

very

at

peace

thoughtful

Hill

and

ried.

;

the

at

men

Pentagon

They fear that

A third

wor-

tremendous

election

victory
of
This., is

become

which

their

of

Immunity from punishment that

until

they

and

be

may

far

as

lic

opinion.

tempted to

so

go

to inflame American pub¬

It

is believed

their

troubles

th^ir

on

defense perimeter, the Reds

own

not going to pass up readily

are

opportunity

any
open

to get

up

bold

the

of

see

end

might

military foot-

a

Middle

in the

strategists

which

East, which

the beginning

as

for

the

back

boys

Western'

of

men,

course,

chatted

personal

the

do

don't

WHAT

care

they do

thoughtful

do

so

to

change

men

hesitant to

are

because they can do little

national

a

mood

of

system

will

take

Jan. 3
about where it left off. with the
ending of the last session of the

On

it is not beyond the possibilities
that
some
of the Republicans

determined

might just

would

termination

culed

pacificism and
only get themselves ridi¬

as

a

consequence.

!

«■

views

to

about

Republican
Reaction To

84th

up

/

mination

,

Another
the

uncertainty is what
members of Congress will

construe

tion

as

to

the

"United"
tive"

the

national

mythology

Nations

security

as

a

the

consequence

hard-headed

:

observers

would have the gravest misgiv¬
ings about resting American de¬
fense upon a NATO arrangement

when

to,

one

of the partners there¬

Great

Britain,

was thrown
tailspin as a
consequence
of its materially
modest adventure in invading
Egypt. Such observers Voftld
also question the validity'of the

into

economic

an

U. IN.

dream

Hungary
jhave

as

when

Russia

in

Red China in Korea,
the

demonstrated

of

that

ing

THE

party

impo¬

of the mythology toward
big-scale aggression.

the

less

silly

more

because

welfare state.-

ate

If

there

is

the

course

episode.
for

to

left

moder¬

even

them- the

of 1957's history,

be a minor
immediate drive

The

killing

a

will

of

to have

the

Mr. Nixon is

a

trustworthy

filibuster

fail, for the filibuster has

Senator

rials,

credit, and all the good
things of life, and attemptingly
and

the

inflation, already
In

of

case

drive

to

House

the

they

rampant.

the

war,

filch

so

national

nation's

ther

and

classes

upper

extensions

of

state,-obviously

for

the

will

of
as

"liberal"- principles
of ability.

man

a

well

as

Without

war,

be

that

One

the

their

way

a

new

his

in

1953

Cadillac

f

s f

this

'

thing

it

go

the

in

last

outlook

appraised

after

the

in

"new

election.

come

shown

Olin Oil & Gas

or

to

the

Republican"

White

accept

House

Richard

whether the latter has

his capacity to outsmart

There

is

doubt

no

Eisenhower has

them, the prospect of
■

;

cover

war

to

oust

an

under-

Nixon

from

*

of

same

•

"*

-

;

impressed

•

'

t

Democratic party.

issues,

v

much

health, will be

for

The
become

to

/

Eisenhower

the

"Republican" Congress, for

since

he

come

up

cannot

and

for

himself

again

his

supported
the

only
voters

to

the

elect

extent

"modern

Republicans."

Heretofore,

President

concentrated

has

the weird notion of

partisan
meaning

\and

a

being

sort

there

issue

maj

soon.

The

McCarran-Waltei

The

visit

of

a

of

sympathy

the* Russian
come.

the
on

non¬

the

tyranny,

escaped

be¬

may

vehicle * for

bitter

a

down

immigration.

the

barriers

to

-

[This column is intended

to

re

fleet the "behind the scene" intei
pretation from the nation's Capitt
and may or
may not

the "Chronicle's"

coincide wix

own

views.]

Big Brother to all. So

won't

be

much

real

heat

I

TRADING MARKETS

A. S.

Botany Mills
Campbell Co. pom.

1

Bank of America

Fashion Park

Pacific Northwest Pipeline Common

Indian Head Mills

*>,*<*«

Wagner Electric
•

Bought—Sold—Quoted

FOREIGN

SL 456




TEL:

320 N. 4th St.
St.

Louis

2, Mo.

GAr field 1-0225

•

Morgan Engineering
National Co.

SECURITIES

'50 BROAD STREET

Member Midwest Stock
Exchange

Teletype

s77,
HANOVER 2-00SO

jOI

United States Envelope

Carl Marks

SCHERCK, RICHTER COMPANY
Bell

the

well-

Texas Eastern Transmission

Sulphur

1

and perhaps successful effort to

Delhi-Taylor

Pan American

.

Vice-

over

ful of Hungarians who

ego

his niche in history will be

that

President

poorer states.

hot,

the

act.

grand

break

election,

the

plight of the comparative hand¬

first

time since 1953 will be definite¬

a

oi

President is committed to "liber

the

1958,

come

for

*

legisla¬

President Nixon to Austria and

year.

On the other hand,
Mr.

Con¬

a

con¬

session

Aid to education is
upon

real

quota

gressional election

for

up

the

of

education

immigration

is

not

all

proportion the

alizing"

is

public

wealthier states to benefit out of

On the other

compulsion

1957

health

dropping his idea of nicking the

achieve legislative results. That
because

subsidies

more

poor,

tive results.

hand, the President will not be
under

;

farmers, for the

dependent

the New Deal

as

*•

ex¬

-

Inflation.
*

t

Mr,,

consider

that his niche in history is to

much the

too,

1957, ,with, indifferent

that
to

come

to 7 have

appears

the

7

77

No Pressure

t\

gains
which

as

one.

'

.

capital

something

himself

sideration

of

somewhat

appears

was

column

Nixon

Universal Match

Anheuser Busch

they

and

is

|

depletion ,7

he,.-

for

"

oligarchy in
•

as

ear,

the

has
'

the

from

for

to feel secure, and has

come

traded

going to control. And

certain

more

Colorado Oil & Gas
'

relief

bid

a

subject

now

and

has

■

since

however,

can

and

in

Republican Leadership

aside for the duration.

assumption

by-

the Demo¬

among

Mills

welfare

Mr. Adams

ly interested in getting his kind

fur¬

tossed

Rayburn

going to play it by

are

in

Johnson

chamber

Sam

are

feeling

welfare

be

Com¬

along.

sav¬

ings and the income of the mid¬
dle

"liberals."

National

Lyndon

"upper"

Speaker

so-called

controls to stem the tide

wage

of

price

fo¬

All the customary
panoply of

make the Republican party look

Democratic

leadership's drive to try
to horn in on the policy-making
of the Congressional Democratic
leaders
is
already
a
demon¬
strated flop.

a heart-rending prob¬
trying to ration mate¬

ineffective

-

Rep-7

are

Immigration Issue

mittee

of

torn with

of

issue

partial

lem

man

er

The

course,
the picture is revolu¬
tionized.
The Congress will be

lem

off

Such

men.

'

govern

with the magnitude of the
prob¬

to feel that

come

from time immemorial been the

-

war,

*1

substantial/

a

pressed

Adams, the day-by-

leader-

however,' this will

Whether the

/

and

lost

temperance

In the

-

be

to

the

abandoned,.' for

4

election, were disposed to at¬
tempt to nail securely the pol¬
icy of the Aggressive Left.

-

vehicle
-

Assumption No War

tence

#

to be dim¬

seems

.

stood

the -party's

t wing, certain that

de¬

Eisenhower

Mr.

mer.

Sherman

Democrats will start out look-,

their

direction

Treasury.

that

have

allowances-

,

sacred weapon of the

for the

"collec¬

of events of recent months.

Most

the

balconies:—the

day de facto President, is under¬

reac¬

of

and

make

a

express

movie

the succession

Congress.

Leadership Problem

party should take
the expressed deter¬

and oppose

"Collective" Security

back with

come

mone\

is .written

Wilbur
..situation

black, reaction¬
in the constitu¬
and nationalism,

believers

tional

will

treatment

by and large did not carry
percenters into office with
him into Congress or cause the
ary

The

in

Stock Exchange balcony frowns on that stort of thing!"

downfall of the

the Hill also

to

•

the other hand, since Eisenhow¬

hensions.

have

to

the,

appreciate ]

can

for netting income

the

members."

post¬

crats./ The idea of making

be

Republican

notion

this

on

"I

It ' might

be

unemployment,

means

^

political

Wilbur Mills and Senator Harrj

presumed 'that
packing such a wallop as he did,
Eisenhower's prestige will re¬
strain Democratic opposition. It
might also restrain the latentconservatism of the majority of
.

Any

down

*

$

Ryrd, the most effective voice*c*

returned

in

ac-

the I

business set¬

a

stiffs

surplus

President

privately

rot dare to express such appre¬

en

should

thoughtful

200

Military

and

it'

ment

er

World.
.

smallest

would go to the

something

have

an

with

the

and

what

-

nailed

be

cannot

the

'J

/coming to them that otherwise/!

lobbies of the Capitol.

that
.

despite

only

up

uncertainty is how the

the

to'

be

that

/

tf\

i

withholding tax, tax relief rolls

—7 ^!\

-

small

of

to

come

dogma

,4

below/

.

working

Eisenhower.

confident

sake

„

mileage,

arise because the Comrades will
so

the

.

j

of,

surf

corporation

peace

members of Congress will, react

might

war

•

,

poned until with

/>■'•

none

income

on

Universal Ointment (i:e., U. S.$).

-

the

on

are

securing

for

„

cepted

;

they originated

of

normal

There has

the
handi¬

because

tha.

business.

world

party

a

is

important tax

probably

around

v..

Reaction to Eisenhower

any

price policy, however, which has
many

as

concept

thereon.,

has been affirmed repeatedly.
It

insecure

,

and

..

$25,000,

educate

ward and, by force of logic and
persistence, provide a different
leadership/although few would
now
bet
a
plugged "farthing

Adminis¬

tration. Its policy is peace at any

price,

tax

rates

rea¬

Certainly

an

clearest
no

It is possible, however, that a
vigorous leader might come for¬

-

'

to

be

via the worldwide dispensing of

be

present

"evaluated.

of

environment.

three uncertainties

are

which

,

only a
action.

and
legislative

of

realities

a

!l>

this business of shifting the

from Congress

effort

is

will

reduction and

the American people to the hard

is likely to

now

which there will be

in

one

to anticipate

determined

a

scheduled to get under way just
one

there

gallery
general, there is little

which

one

Exchange

visitor's
son

bq^J

1958.

Among the specific issues, th< "

Stock

In

be in

may

Specific Issues

on..

WASHINGTON, D. C.—Barring

r

•

BUSINESS BUZZ

Iron the Nation'*

H;§6

.Thursday, December 27,

.

/

& Co.

Riverside Cement.

Inc.

Sightmaster Corp.

SPECIALISTS

LERNER & CO.

*EW YORK 4, N. Y.
«

Investment

10 Post Office

Securities

'

Square, Boston 9, Mass

Telephone
HUbbard 2-1990

Teletype
BS 69 ~

^
k